Following the acquisition of Extel in 2018, Institutional Investor Research (II Research) has been working to integrate the Extel Survey, extract the best practices from both brands and improve the user experience and the client journey. A new portal was launched in 2019 based on the Extel Survey, and the UK Small & Mid Cap is the only independent qualitative assessment of this specialized sector of the equity market.
Historically, the Extel Survey produced a Best UK Small & Mid Cap Broker award that included 18 research categories, as well as sales, corporate broking, and trading. With the changes implemented by MiFiD II, Institutional Investor has focused on research as the headline result, supported by Sales and Corporate Access (including corporate broking), with trading to be released at a later date.
To select the members of the UK Small & Mid Cap Research Teams, Institutional Investor solicited opinions of directors of research and investment professionals at asset management firms that have significant holdings in UK Small & Mid Cap companies. Minimum criteria are holding of 10 stocks or more in UK listed companies with a maximum market capitalization of £4 billion. We received responses from more than 293 individuals at 203 firms. The names of individuals surveyed are kept confidential to ensure their continuing cooperation.
Participants rated their top firms in each sector and then separately rated individual analysts at those firms to create two distinct rankings for each sector. A numerical score was produced by weighting each vote based on the responding firm’s assets under management in the sector and the average rating awarded. This created the AuM-weighted rankings.
Using those scores, ranks were determined. Firms/analysts are awarded a “Runner‐Up” position if their score comes within 35 percent of the third-place score in a sector. For the analyst rankings, the cut-off date for individuals is the date of the survey opening (2nd March 2020).
Voters must meet strict eligibility requirements, and winners must achieve a minimum vote count. All ballots are subject to review by the Research Operations Group.
Sales & Corporate Access
In addition to Research, voters are invited to rate firms on both Sales, Corporate Access, and Corporate Broking criteria at the firm level only. Voters may rate up to seven firms in Generalist Sales and then assess each firm on a number of criteria. Top 10 table was produced based on overall vote count.
A more detailed methodology can be found here.