At Substantive our tagline is “Source Quality, Save Money” – we ensure that portfolio managers don’t miss the best research, and provide data-driven insight into how research providers compare. We don’t broke research or charge providers.
Asset managers can subscribe to two main products:
- Thematic Research Monitoring. We keep the investment function aware of everything outside their core research provider list with a weekly monitoring service matched to individual portfolio managers’ investment processes. Understanding consensus in specific trades and themes will be difficult in 2019, whilst the most contrarian publication may not even be accessible for a PM.
- Value/Price Benchmarking. We keep the procurement function aware of the best matched analysts and providers for their firm’s specific needs. With greater scrutiny on the research budget understanding more suitable or cheaper alternatives is the only way to get value for money.
Research flow from 350+ bank and independent research providers, plus an experienced editorial team and proprietary custom-built A.I. allow us to provide clients with a unique perspective on quality, suitability, value and coverage.
Institutional Asset Manager: Foresight invests in Substantive Research
Bloomberg: Analyst Jobs Vanish as a Perfect Storm Crashes Into Research
Integrity Research Associates: Research Unbundling Conference a Resounding Success
Bloomberg: Analysts Make Research Cooler, Wonkier and Bespoke to Lure Cash
Fundfire: SEC MiFID Stance Could Bring Implementation Challenges for Managers
Integrity Research Associates: Assessing MiFID II’s Impact in the US
Financial News: Fund managers preparing to get pickier about the market insights they acquire under Mifid II
Investment Week: Asset Manager Code of Conduct Unveiled
Integrity Research Associates: Substantive Research Develops Methodology for Ranking Research
Euromoney Magazine: Counting the Cost of Research
Finextra: RSRCHXchange connects with Substantive Research Daily Briefings
June 2020 – how will Covid-19 affect the already disrupted investment research market, and how much will the EU soften MiFID II in response?
Asset managers have had over 2 years to assess their responses to MiFID II and research unbundling rules. At the end of 2019 asset managers negotiated research prices for the first time with some understanding of what they used and valued most and least. Last year the savings came from cutting the tail of the provider list, this year there have been adversarial conversations with core providers in order to save money where possible.
Now we have to assess how these trends will have accelerated or been changed by the current crisis. Differentiated research will be more important than ever, but the focus on costs internally will mean that every research dollar spent will be under intense scrutiny. Will independent research reassert itself from a market share perspective, or will this push more budget to the top end of their list with their bulge bracket providers?
How the EU responds will be key – many expect that they will take some action to relax some research rules, but to what extent? Whilst many would welcome relaxation in a number of areas (trials, treatment of independent research etc.), most asset managers do not currently have the appetite to drastically change processes once again in response to a significant roll back of the regulations.
How this all plays out later this year will decide the direction of travel for price, supply and demand in 2021 – the turbulence we’ve seen since MiFID II could only be the beginning..