The UK's largest listed hedge fund manager Man Group has made a u-turn on its decision to pass research costs to clients under sweeping reforms to the European Union trading rulebook coming into force in January.

The announcement today that, for the majority of its strategies, it will bear the costs of external research itself under the updated Markets in Financial Instruments Directive comes alongside its trading statement for the three months ended September 30. It said that net inflows of $2.8bn during the quarter had helped push assets under management up 28% on a year before to $103.5bn.