Fund management groups are strongly disapproving of analyst involvement in investment banking, according to the 2001 Reuters Survey of European Smaller Companies for investment research, sales and trading and investment banking.
The study noted that fund management groups have voiced their most negative view yet of analysts’ involvement in investment banking work – some 87% say that analysts’ involvement in corporate work dilutes their institutional work.
High levels of satisfactory contact and coverage at the equity research level do not extend to the quoted companies’ relationships with sell-side firms’ investment banking departments, the survey adds. Only 55% of companies say that they have had contact with investment bankers over the past year.
The survey is based on the participation of 382 companies or 61% of the $504bn equity market value of the 700 smaller companies in continental Europe.
The survey also ranked Fidelity Investments as best fund management group.
By Janet Du Chenne
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point