Bernstein Investment Research and Management, CM-CIC Securities, Dresdner Kleinwort Wasserstein and UBS Investment Bank were named the best among 23 firms for analyzing and incorporating into their securities research non-traditional issues that could affect corporate value, according to a report released today by the Enhanced Analytics Initiative group.
EAI members include the €60 billion ($73.39 billion) Stichting Pensioenfonds PGGM, Zeist, Netherlands; the $36 billion Universities Superannuation Scheme Ltd., Liverpool, England; the £3 billion ($5.44 billion) London Pensions Fund Authority; and the £33 million Trades Union Congress Superannuation Society, London. EAI members pledge at least 5% of their brokerage commissions to research firms that are effective at analyzing such non-traditional areas as corporate governance, environmental, employment and public-health issues and integrating them into their mainstream reports.
The firms were evaluated between Nov. 1, 2004, and April 30 by the consultant onValues Ltd., commissioned by EAI. Criteria include the comprehensiveness and range of non-traditional financial issues; the ability of brokers to make assessments that permit comparison between companies; and how well brokers have succeeded in providing research to match the broad investible universes of EAI members.
The EAI seeks to promote better sell-side research in these non-traditional areas for better investment decision-making.