MiFID II Drives Buy-Side to Measure Research ROI

ONEaccess, a Visible Alpha company, in collaboration with Institutional Investor, a leading international business-to-business publisher, and Substantive Research today published “MiFID II & Research” (Download the free research HERE). The thirty-five page report provides the results of an extensive survey of both asset managers and asset owners and covers topics from research budgeting to valuation to implementation. The findings are based on the views of senior asset managers and asset owners who are registered users of Institutional Investor’s private, online community.

Key takeaways from the research include the following:

• The move by asset managers to pay for research out of P&L is driving the need for more robust research valuation frameworks.
• In cases where asset managers have chosen to pay for research out of their own P&L, asset owners are concerned about where the costs may resurface.
• Asset managers and asset owners are looking forward to greater transparency to help identify the most valuable research providers and the impact they are having on investment decisions and performance.
• Asset managers recognize that managing inducements poses a challenge and they are willing to invest in compliance processes to ensure that their users can continue to consume research through multiple distribution channels.

“As MiFID II approaches, asset managers and asset owners believe that a more systematic and process-driven approach for valuing research and aligning value to price will yield better results,” said Mike Stepanovich, President of Enterprise Services at Visible Alpha. “Asset managers want choice over the research they consume and the platforms they use to consume it. Whether firms opt to build their own solutions to address this or select an outside partner, it is important that the chosen solution not disrupt existing buy-side workflows.”

“We are happy to have had the opportunity to work with Mike and his team on this insightful research,” said Karen Singerman, Associate Director at Institutional Investor. “While tremendous progress has been made across the industry in preparing for MiFID II, there is still more work to be done and we look forward to helping the industry get ready through additional educational resources, events and research reports like this one.”

Download the free survey results at https://info.oneaccess.io/mifid2-survey.