Exciting Extel Trends

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The 36th annual pan-European Thomson Reuters Extel survey’s results were released yesterday in a lunchtime ceremony in London’s Guildhall.  The survey captured responses from 1450 buy-side firms, 170 brokerage firms/research houses and 500 of Europe’s largest quoted companies worldwide.

The survey highlights winners in 200 different areas which include equity sectors, economics and strategy, equity derivatives, and emerging market categories.  The role of specific analysts and strategists is also considered in the survey.  Some of the awards won for research include:

  • UBS’s second consecutive claim on the top Pan-European Brokerage Firm for Equity and Equity Linked Research spot
  • Societe Generale’s Global Strategy Team winning the award for Leading Pan-European Sector Team (across all categories) for the second year in a row
  • JP Morgan’s Banks team jumping 23 spots from last year to claim the top spot in the Leading Pan-European Equity Sector Team category
  • Societe Generale winning the Leading Pan0European Brokerage Firm for SRI & Sustainability research category
  • James Montier of Societe Generale claiming the top spot in the Leading Pan-European Economist/Strategist Category

These awards are impressive and high praise should go to the winners for the quality services which they provide.  Of particular interest to Integrity however are the key trends which the survey uncovered.   The first trend mentions that overall, market turmoil has led to a decline of an average of 40% in commissions paid to brokers for their services.  Conversely the next trend, which is quoted below, shows the exact opposite is true for independent research providers.

“High quality insights are still greatly prized, with asset managers actually increasing the number of research counterparties, and accessing more independents and research boutiques than ever before.”

In other words, while fund managers are paying brokerage houses less for their services due to the conditions of the market, they are actually using more independent research providers.

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