A couple of weeks after reporting a projected and dramatic drop in sell-side research, Integrity Research Associates is again predicting that spending on independent equity research by institutional investors is expected to soar more than 112% over the next four years. According to the report, the independent research firm share of the market will climb from $1.47 billion in 2004 to an estimated $3.1 billion in 2009.
That may sound like good news, but Integrity CEO Michael Mayhew warns that "not all independent research providers will benefit from this rising tide" as companies rely more on internal research, and "the trend towards unbundling research from execution will prompt asset managers to take a hard look at what research they are using and how much they are paying for it."
That may sound like good news, but Integrity CEO Michael Mayhew warns that "not all independent research providers will benefit from this rising tide" as companies rely more on internal research, and "the trend towards unbundling research from execution will prompt asset managers to take a hard look at what research they are using and how much they are paying for it."
