Equity Research

Equity research is changing.  It’s rapidly changing.  The statistics are sobering for small to mid-cap public companies who seek to have the financial markets better appreciate and value their organisation through equity research.

• Globally, 35-40% of listed companies have no equity research, leading to inefficiencies and distortions in value
• On the ASX, 63% of listed companies have no equity research
• As a cost centre, equity research budgets at broking houses are in substantial decline
• Resource allocation is trending strongly towards larger capitalisation, liquid stocks to the detriment of small to mid-cap companies
• At least a 20%, possibly up to a 50% decline in sell-side analysts is expected over time

Now the good news for you and your equity research partner, Nemean:

• Independent equity research unencumbered by traditional banking models will increase
• Availability of the Nemean equity analyst to market client research to investors
• Research reports are made available to the client for their own marketing
• Follow on reports and long term engagement as opposed to cursory broker desk/flash notes simply regurgitating ASX announcements
• Institutional investors will divert attention and resources towards higher quality independent analysts and those offering bespoke, in-depth reports

MiFID II

The introduction of the Markets in Financial Instruments Directive (MiFID II) in 2018 across the European Union has been highly disruptive to the traditional banking model, requiring the unbundling of charges for execution services and investment (equity) research provided by banks and brokers alike.  In a globalised world, MiFID II is unlikely to remain a European effect for long. Very simply, the reforms seek to place a price or value on the equity research generated by sell-side analysts for the first time.

Nemean provides deeply analytical, incisive and credible equity research devoid of traditional banking conflicts to clients.  Additionally, for institutional investors, Nemean offers bespoke solutions for those seeking novel sector insights, trends, competitor dynamics or access to key opinion leaders and other sector experts.

Nemean provides what fund managers want from Equity Research