Continuing a busy week, YouGov has agreed amicably to dissolve its YouGov Execution (YGX) joint venture with Execution Ltd after 18 months, in order to launch a fully owned firm developing the same idea, YouGovAlpha.
A statement from YouGov co-founder and CEO Nadim Zahawi says the change of vehicle will allow the firm ‘to provide independent services to clients as we will not be linked to a brokerage business or fund as a partner’.
YouGovAlpha is billed as ‘the UK’s only dedicated market research agency with services tailored to the specific needs of fund managers and investment professionals’ and starts with a team formed by moving all YGX’s research consultants to existing YouGov premises, where the team has room to expand further. The new venture builds on YGX’s theme of ‘using primary research to gain insights into the marketplace performance of sectors and companies ahead of trading statements and publicly available information’.
YGX ran for 18 months, and the ex-partners say it succeeded in ‘establishing primary research services as a valuable resource for the investment community’ but have agreed that ‘it is no longer in the interests of either party to maintain an exclusive relationship with each other.’ The ‘amicable’ dissolution will enable ‘each company to independently pursue aspects of the YGX business.’ The two companies will continue to co-operate on certain existing YGX services, such as the YouGov/Execution Clothing Retail Index, and where relevant may pair up again in future.
According to Zahawi, ‘The use of primary market research is in its infancy in the investment community. However the feedback we have had from YGX clients confirm that they gain a genuine competitive advantage...’ Zahawi says the continuing growth of YouGov’s panels provides opportunities to extend the firm’s offer to the investment community.
Neil Thorington, MD of YouGovAlpha says its creation ‘allows us to focus more intently on assisting our clients in making better investment decision through ever more robust and quantifiable information. We are now in a position to accelerate the development of new products and services to meet growing demand...’
The new firm is online at www.yougovalpha.com