Members of the 2017 All-America Research Team agree: The sell-side is in trouble.
For the 46th time, II surveyed money managers to come up with its annual leaderboard of Wall Street analysts. In interviews with those who made the cut, many pointed to impending European regulation MiFID II — the cost-unbundling update to the Markets in Financial Instruments Directive — and increasing flows to passive assets as major challenges facing their industry.
“Nobody really knows how the outcome is going to play out,” said one energy stock analyst of the landmark regulation. Another 2017 team member made a confident call: “There will be collateral damage.”
Even as these trials unfold, historically top-ranked analysts remain buy-side favorites. The members of the 2017 All-America Research Team — which will be unveiled Tuesday, October 10 — include many familiar faces, as past powerhouse analysts defend or return to their spots on the first team.
[II Deep Dive:The 2016 All-America Research Team: The Resilience of the Sell Side]]
Nine previous Hall-of-Famers — those who’ve made first team ten times or more — take victory laps, while one first-team analyst makes his Hall-of-Fame debut. Also this year, nine sectors are led by newcomers — analysts who have never made first team before.
Meanwhile, in the overall ranking of best research firms, just six hold on to their elite positions from last year. Nine firms climb higher, while thirteen fall to the competition.
Three firms tie for fourth place, as another three in the top ten slide downwards, having fewer ranked analysts this year than in 2016.
The 2017 All-America Research Team — covering eight categories and 60 investment sectors — reflects survey responses from 1,357 asset management firms representing $11.9 trillion in U.S. equities.
