A report outlining the findings of a survey conducted by consultancy Peter Lee Associates, obtained by InvestorDaily, has ranked research houses Zenith, Lonsec, Morningstar, SQM, Mercer and bfinance on a metric of consistent and transparent methodology, capability and experience.
The survey methodology involved face-to-face interviews with senior portfolio managers and heads of equity from 29 institutions, separated into two categories of “small investors” ($4 billion FUM and under) and “large investors” (more than $4 billion FUM).
The 2017 survey found that Zenith ranked first, followed by Lonsec, which fell by 21 points from the previous year when it took out the number one place.
Both Zenith and Lonsec demonstrated gains in perceived overall research capability, but “Zenith now ranks first”, the report said.
“Zenith has the widest recognition for undertaking the most thorough research and reporting in the most independent manner,” the report added.
Though Zenith was ranked first overall, Lonsec beat Zenith for “most stable research team”, “most prepared when meeting with fund managers”, “most credibility and influence with dealer groups” and tied with Morningstar on “depth of coverage”.
Morningstar was ranked first for “quality of interactions”, narrowly beating both Zenith and Lonsec.
In the “small investors” category, both Zenith and Morningstar were hampered by a perception of “high staff turnover” while Lonsec “leads on team stability”.
Morningstar, Mercer and SQM had enjoyed “stronger feedback” in 2017, but they also saw “little change in overall positioning” in the total market.
