Handling of investment research costs by Evli’s funds


Under the MiFID II regulations that came into force in January, investment firms offering asset management services must separate the costs of investment research carried out to support investment decisions from the securities brokerage and execution fees. The regulations do not directly apply to fund management companies engaging in mutual fund activities but Evli Fund Management Company Ltd has decided to voluntarily comply with the regulations and will separate the research costs paid by funds from the brokerage fees. Until the end of 2017, research costs were part of the brokerage and execution fees paid by Evli’s funds.

At Evli Fund Management Company Ltd, investment research plays a key role in the management of fund portfolios. We believe a high-quality research is in the interests of our unit holders in the long term. Charging the research costs from the fund’s assets is based on pre-determined and fund-specific needs and a need-based selection of Finnish and foreign service providers and research budgets that are separately approved for each fund. For fixed-income funds using research, the cost impact is in most cases marginal. For equity funds, the simultaneous reduction of trading costs will compensate the costs of investment research acquired for funds and the cost impact to funds will be neutral on average. The management company monitors and assesses the quality and suitability of the research it acquires with regard to the needs of each fund and the cost of the services and may change service providers if needed.


For more information, please contact:
Kim Pessala, Managing Director, Evli Fund Management Company Ltd, tel. +358 (0)9 4766 9141