Country results: still room for niche players
The delivery of European equity research is undergoing a fast and fundamental change. Most fund managers have long complained that they receive far too much paper-based research. "It's terrible. I can't go away," says Hans Nordemann, head of European equities at Citibank Private Bank in London, complaining of the build-up of analyst reports. "If I go away I won't be able to get back into my office." But by the end of this year Nordemann and fund managers like him should be able to banish paper research from their offices, receiving research electronically instead.
The advantages of electronic distribution are clear. "The information comes in on a more timely basis and access is instantaneous," says Mark Philips, head of global equities at Ivory & Sime.
Electronic research allows fund managers greater control over what research they receive: from particular analysts, on specific companies or sectors, on particular markets, or from certain research houses. Electronic distribution also allows fund managers to see old research as and when they need it.