Asiamoney Brokers Poll 2017 Methodology

Asiamoney’s 28^th annual Brokers Poll is scheduled for launch in June 2017. We invite senior institutional investors from around the world to assess their sell-side banks and brokerage firms for Asian equities.

The detailed results will be published online in December; full and bespoke data are available for purchase and released in early November.

METHODOLOGY & CATEGORIES:

The poll features the following 16 geographic sections:

1)  REGIONAL (ASIA EX-AUSTRALIA & JAPAN) SECTION

To qualify for the regional categories, firms, analysts and sales personnel need to receive votes from three or more sovereign countries/independent markets, where more than 40% of their votes come from investors based outside their home territory, to reflect that they are truly regional. For such purposes Hong Kong is not considered a sovereign country/independent market but an extension of the mainland China market. For example, for Chinese banks/brokers and their staff to be considered regional, more than 40% of their nominations for any particular category must originate from outside China and Hong Kong.

Regional Equity Sales

• Best overall regional brokerages for sales services

• Best regional sales people

• Best regional sales traders

• Best regional brokerages for execution

• Overall regional research for Asia (ex Australia & Japan) as voted by most active traders*

• Overall regional sales for Asia (ex Australia & Japan) as voted by most active traders*

* Asiamoney will tabulate ranks for these two categories using data from respondents:  who previously have passed Asiamoney Brokers Poll auditing in 2016; nominated several banks/brokers in both 2016 and 2017 Broker Polls; are featured in client lists from various banks/brokers; whose firms have over US$2 billion in annual trading volume; whose firms have over US$501 million in AUM.

Regional Equity Research

The sectors covered are those most widely invested in – please refer to the below classifications for industry definitions.

• Strategist

• Economist

• Quantitative/technical analyst

• Automobiles & components analyst

• Banks analyst

• Casinos analyst

• Consumer discretionary analyst

• Consumer staples analyst

• Diversified financials analyst

• Energy analyst

• Healthcare analyst

• Industrial (conglomerates/capital goods) analyst

• Insurance analyst

• Materials analyst

• Real estate analyst

• Semiconductors & semiconductor equipment analyst

• Software, internet & service analyst

• Technology hardware & equipment analyst

• Telecommunication services analyst

• Utilities analyst

• Most independent research brokerage

2)  HEDGE FUND SECTION

• Best for overall services in hedge fund

• Best bespoke research

• Best for depth and quality of inventory for stock loan

• Best for idea generation

• Best overall client service/ coverage

• Best sales coverage - cash

• Best trading execution – cash

• Best trading execution – derivatives

3)  PRIME BROKING SECTION

• Best for overall services in prime broking

• Best bespoke solutions for prime broking

• Best client service for prime broking

• Best for capital introduction

• Best for customized reporting

• Best for futures

• Best for quantitative research

• Best pricing for prime broking

• Best product innovation for prime broking

• Best risk management advisory services

4)  EQUITY DERIVATIVES SECTION

• Best overall provider for equity derivatives

• Best after-sales services, including settlements and back-office

• Best electronic trading/ online platform

• Best for broadest product range

• Best ideas and most innovative products

• Best pricing and execution capabilities

• Best research and market coverage

• Best structuring capabilities taking into account client requirements

• Best training and educational support

5)  COUNTRY/MARKET SECTION

• Best local brokerage

• Most improved brokerage, across both research & sales, over the last 12 months

Equity Sales

• Best brokerage for sales trading

• Best execution

• Best overall sales service

• Best sales persons

• Best sales traders

Corporate Access

• Best for events and/or conferences

• Best for roadshows and company visits

Equity Research

• Best analysts per sector

• Best research coverage for strategy, macroeconomics, small caps and each of the weighted and most frequently traded industries in that market

• Best overall research

• Best empirical/grassroots research

• Most independent research brokerage

6)  CALCULATION OF RESULTS

Points for place

For all categories, a first place vote rewards three points; second place two points and third place one point.

“One firm - one vote”

To avoid any one institution having more influence than others of equal size, multiple responses are fractioned according to the total number received from that one institution.

Asset size weightings

Each response is weighted according to the institution’s approximate asset size (total unleveraged Asian equity funds under management) in Asia-Pacific. Hedge fund firms will be weighted at six times their assets to reflect their higher turnover rate. The following table details the weightings according to asset size:

Rankings for overall combined regional research & sales, overall regional research, and overall regional sales

For the Asia (ex-Australia & Japan) rankings a domestic market weighting system is used to compare brokerages as a whole in the region. The rationale is that the importance of markets varies across the region, so the points a brokerage receives in major markets should be weighted more than the points it receives in smaller markets. The MSCI AC Asia ex-Japan index was used as a guide to achieve this. A similar sector weighting system is used to address the importance of the sectors within the region. Please refer to the following tables for a mathematical breakdown:

The scores for Australia, China (A&B share) and Japan Overall Combined Research & Sales are calculated by simply adding together the scores from the categories of Best Overall Research and Best Overall Sales Service in each of these independent markets.

Research sector classifications:

7)  VERIFICATION & AUDITING

Several working days after completing the poll, some respondents may receive a validation email from Asiamoney. Respondents are required to click on a validation link in this email to confirm their vote. Failing to do so may lead to their votes being nullified. If a respondent doesn't validate their vote by e-mail, Asiamoney will follow up and attempt to verify by other means.

Asiamoney will investigate and audit individual responses; responses suspected of being fraudulent will be nullified and violating parties will be prohibited from participating in future Asiamoney Polls.

Please direct inquiries to Harris Fan by e-mail at harris.fan@asiamoney.com or by telephone at +852 2912 8037.

This Disclaimer is in addition to our Terms and Conditions as available on our website and shall not supersede or otherwise affect those Terms and Conditions.

This poll is not based on scientific or representative samples. As set out in our Methodology, The results of the poll and other related information have been obtained from various opinion-based sources and have not been independently or professionally verified. The results of the poll are therefore statements of opinion of participants of the poll as of the date of participation and not statements of fact.

The information in this poll is provided on an “as is” basis. Your use or reliance on such information, including the results of the poll, is therefore at your sole risk. Neither we, nor any of our providers of information, make any representations or warranties, express or implied as to the accuracy, content, currentness, timeliness, reliability, completeness or fitness for a particular purpose of any information published in this poll. Neither our company, nor any of our officers, employees or representatives shall be liable to any person for any losses or damages incurred, suffered or arising as a result of use or reliance on the results or other information contained in this poll, howsoever arising, including but not limited to any direct, indirect, consequential, punitive, incidental, special or similar damage, losses or expenses.

We are not an investment advisor, a financial advisor or a securities broker. The information published has been prepared solely for informational and educational purposes and is not intended for trading purposes or to address your particular requirements. Such information is intended to be available for your general information and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions.