It’s all about big data at Dutch asset manager Robeco as Mifid II rules on research kick in
Funds sold by Robeco in Asia are also bound by regulations that require asset managers to pay for investment research
Dutch asset manager Robeco is increasingly using big data concepts to trade securities under the Markets in Financial Instruments Directive II (Mifid II) rules introduced in the European Union this month.
The Mifid II rules are aimed at increasing transparency by requiring asset managers to pay for their investment research. Previously, banks and brokers offered research reports in a bundle with other trading services.
As a consequence, most asset managers, including Robeco, have chosen to absorb the extra cost of research rather than pass it on to clients. This in turn is changing the way asset managers think about the trade and execution of securities, which are traditionally conducted with certain brokers simply because they provided the research.
“Now we just get a bill and pay for the research, and we trade with whoever we like,” said Maurice Meijers, the chief executive of Robeco Singapore.
Robeco has assets worth €152 billion (US$186 billion) under management. In Asia, the asset manager sells Undertakings for Collective Investment in Transferable Securities funds, which are based on the European Union regulatory framework, meaning funds sold to Asian private banks are also bound by Mifid II.