Over $20 billion* is spent each year on Research bought via commissions. By showing how Research is used Mereus offers Asset Managers the opportunity to both reduce brokerage commissions (up to 50%) and to increase performance for both Investors and Asset Managers alike.
How to profit from cutting your spend on equity Research?
Imagine that you are a $1.5 billion fund manager paying $17 million a year in commissions to 10 full service brokers. If full service brokers cost twice as much (say, 10 basis points) as execution-only brokers (5 basis points) it follows that every broker you pay as full service rather than execution only is effectively reducing assets under management by $850,000. That six basis point tax on assets under management also reduces the management and performance fees paid to you as manager. At a 2 per cent management fee and a 20 per cent performance fee, that is worth $17,000 in additional management fees and $166,660 in performance fees, or $183,600 in total.
Mereus gives you continuous real time analysis for how Research is used.
Please see the Mereus calculator on this site and put your numbers in to see the savings available by improving the ratio of Execution only to Full Service Brokerage agreements. Why continue with Full Service Brokerage Agreements if less than 10% of Research is read?
FCA and Conflicts of Interest
The FCA continues to strenghthen its recommendations for 'unbundling' and commission allocation. Mereus supports these directives by offering clients a simple and straighforward way in which to show the contribution of all Research information. By quantitatively measuring how Research is used our customers can accurately distribute CSA pools to those providers delivering the Research that really makes a difference.
- - Mereus provides continuous real time information about which Research is being read by whom and when.
- - See how your firm compares against other firms and their use of Research.
- - There are no hardware or upfront software costs
- - There is no software to install
- - We offer a variable low cost pricing structure
- You are in control as our customer interface allows you to view reports and extract data
Call us on +44 207 079 1097 or email us at email@example.com to find out more.
Alternatively, why not go ahead with a free 30 day trial and see how quickly Mereus can make a difference to your business.