European regulation requires asset managers to place a monetary value on unpriced research in the construction of monetary research budgets.
Asset managers understand the benefits of aligning multi-asset class research budgets with their investment process/universe to deliver target returns and reduce cross-subsidization.
Asset owners increasingly understand that the cost of research has a bearing on returns.
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FrostRB is a Research Valuation/Budgeting platform that transcends “broker-vote” systems allowing asset managers to construct comprehensive research valuation/reporting frameworks specifically designed to meet MiFID II requirements.
FrostRB is a multi-asset class solution that harmonizes research budgets between equity and fixed income portfolios for multi-asset products.
Key benefits include:
The FrostRB framework can form the basis of the Research Valuation Policy (equivalent of Best Ex Policy) required by MiFID II. This policy must explain the manager’s research valuation methodology and the manner in which they fairly allocate research costs to different clients.
Maximizing ROI on research spend lowers costs, adds to returns and aligns budgets and is an integral part of the investment process/offering.
Models to develop asset-manager specific valuation frameworks. FrostRB is a highly customisable research valuation software platform that allows asset managers to construct multi-asset class research budgets to meet European regulation.
Designed to meet evolving regulatory requirements, systematic processes to adapt "Broker-Vote"/Research Commission Allocation outputs to customised dynamic Research Budgeting Frameworks. Design/Implementation/Payment
"Audit" of the manager's current research procurement process to assess preparation and likely compliance with MiFID II requirements.
Regulatory/client reporting, CSA optimisation.
The origins of the current economic and regulatory model governing the institutional research business date back to the (US) Securities and Exchange Act of 1934. This venerable framework is on the cusp of transformational change. Frost helps asset managers, plan sponsors, banks and other market participants understand and capitalise on regulatory change.