GAM Holding AG and Vontobel Holding AG's Vontobel Asset Management have both decided to absorb research costs following the implementation of the EU's Markets in Financial Instruments Directive II, or MiFID IIrules, in 2018.
Vontobel Asset Management said it expects additional costs to come in the low-single-digit Swiss-franc millions per year, which it factored into its 2020 targets, while GAM said it anticipates costs to reach mid-single-digit Swiss-franc millions annually.
"This decision creates clarity for our clients and makes our cost structure more transparent," Vontobel Asset Management head Axel Schwarzer said.
For its part, GAM said its decision "underlines [its] commitment to placing clients' interests first, while ensuring sustainable growth for all stakeholders." The company reported a 13% increase in AUM for the three months to Sept. 30 to CHF148.4 billion from the end of June, while total net inflows for the period came in at CHF11.8 billion.
GAM added that it expects the strong investment performance across its product range, as well as the strengthening of distribution capabilities, to continue to support future net inflows.