Abstract
This Financial Insights study - based on a survey of Asia/Pacific investment management firms -
unveils the perceptions of money managers in the region of the relative independence of the broker
research they receive. Because of the controversy in the West over disaggregating payments for
research and execution, this survey also investigated the buy-side stance on soft-dollar
arrangements in this region.
Survey respondents further shed light on the degree of correlation between research independence
and research usability and, toward that front, which brokers in the region are adding real substance
to their investment processes.
"Independent research is not always tantamount to usable research. Survival for research
outfits in todays competitive climate will boil down to superior performance," notes Li-May
Chew, CFA, senior research manager for Financial Insights Asia/Pacific Capital Markets Advisory
Service. Analyzing the ranking of brokers, she commented, "With their wider breadth and depth
of coverage, finer specialist expertise, and economies of scale, the global brokers will continue to
dominate the ranks for the most usable and accurate stock recommendations."
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