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Banks Add 'Alternative' Research (That's Us)
Merrill Lynch and Morgan Stanley are the latest global financial firms to launch customised research offerings adding surveys and other 'non-traditional' or 'alternative' research formats to their own financial market analysis functions.
Morgan Stanley's new AlphaWise unit will provide customized market research and access to regional and sector experts, for hedge fund managers and other clients, under the leadership of MD Ajit Agrawal, who joined from consultancy McKinsey & Company in 2004 and has been a key player in developing the bank's research function. AlphaWise will work with US-based analyst network Gerson Lehrman Group.
Last week Merrill Lynch launched Open Minds, a division offering 'alternative' research products and services to meet demand from hedge funds, mutual funds and other institutions for a broader array of research options to inform investment decisions. The service is based around initial deals with seven research providers, including healthcare research firm Decision Resources, Inc. and Screen Digest subsidiary, Global Media Intelligence. The others are Asset 4; Audit Integrity; Cypress Group; HPDI; and Merrill's own Primary Source. Merrill Lynch will market the seven's services to institutional trading clients via its global institutional and sector specialist sales teams.
Candace Browning, President of Global Research at Merrill Lynch, says third-party research will 'enrich our interaction with our clients'. The firm also hopes the extended information available will lead to higher trading volumes. Decision Resources CEO Peter Hoenigsberg says the tie-in will help his firm to 'understand how to present and tailor our research offering specifically to the needs of key asset managers.'
Such extensions are fashionable among investment banks: last year Goldman Sachs launched Hudson Street Services, in which the bank takes equity stakes in alternative research houses and distributes their product to its clients; and recently UBS bought a minority stake in Integrity Research Associates. Last August, UK online researcher YouGov replaced an earlier joint venture in the financial sector with YouGovAlpha, billed as 'the UK's only dedicated market research agency with services tailored to the specific needs of fund managers and investment professionals'.
Merrill Lynch, with offices in 40 countries and territories and total client assets of almost $2 trillion, is online at www.ml.com with the new service at www.merrillopenminds.ml.com . The other banks' web sites can be accessed via www.morganstanley.com , www.goldmansachs.com and www.ubs.com .
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