The Ugly Truth About the Investment Research Industry
There are many challenges and uncertainties facing the investment research industry these days. There is a huge sense of apprehension. If you’re reading this, you might be feeling the same way.
But most of us haven’t stopped to ask ourselves:
- What’s really going on?
- Why do we hear so much about MIFID II?
- Why are there so many roadblocks involved in working with investment research providers?
- Why is it so difficult to find top-notch investment research providers?
I asked myself the same questions some time ago and observed some ugly truths about the investment industry:
- It failed to protect asset managers from overpaying for research. Just because you are a $40 billion-dollar hedge fund, your price for research should be the same as your $1 billion-dollar hedge fund peers.
- It failed to create opportunities for research providers to collect payments and sell their products. Providers are losing business due to tangled budgets and complicated relationships. Many providers are unable to sell because they don’t have a relationship that gets them “in the door” with asset managers.
- Overall, the investment research industry failed to provide a fair market environment for both investors and research providers.
These are the reasons why I built Differentiated Research.
We enable asset managers to request custom investment research anonymously in an auction environment, thereby removing the fuss of unbundling, relationship-management, pricing and other biases.
If the thought, “I’m not sure my research dollars are being allocated to the best investment research providers” ever crossed your mind, let’s work together and help you test your own investment research provider network.
There is a need in the industry to streamline the investment research process.
Differentiated Research is a platform that brings the beauty of simplicity in obtaining investment research back to the table. It’s been proven over and over… Simplicity wins!
And to those investment research providers who are going a thousand miles per second, this is your moment to stop and intentionally improve your sales and distribution process for investment research. I’d love to hear what’s working and what’s not.
I am a research advocate and will explore several topics from regulatory issues, to the plight of asset managers (YES! They have a plight!), to the challenges of investment research providers, to our service offerings, to tips and tricks of negotiations, to the path of an entrepreneur, and much more. If there are other topics you’d like to see or if you’d like to contribute, drop me a line.
Have more questions? Follow up with the expert herself.
CPRES & Realtor
Keller Williams | Houston Memorial
Energetic and decisive leader with over 10 years of experience in the financial industry initiating and establishing programs that ultimately lead to wealth creation for investment firms. Passionately servicing firms by first understanding a company's culture and its direction, then implementing programs to benefit them. Exceptional intuitive, organizational, and problem solving skills have allowed for thoughtful and direct approaches to topics such as commissions management; as well as promoting collaboration and transparency across business units. Continue Reading
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