Mifid II pushes fund managers to reduce turnover – Ignites Europe

Equity fund managers are not trading stocks as much as they used to following the introduction of new rules that force firms to disclose transaction costs to investors.

The new Mifid II rules, as well as pressure from passives, have resulted in a change of behaviour from asset managers, experts say.

The proportion of funds that turn over three-quarters of the portfolio each year has dropped from more than 20 per cent to less than 15 per cent, according to data from Fitz Partners.

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