Countdown to Unbundling
Taking the Pulse of Corporates and Institutions
Below is a summary of some confidential feedback from ingage’s proprietary feedback system.
The sample size includes 157 corporates and 119 institutional respondents.
Some key stats
- 77% of institutional investors think more investor meetings with corporate management teams will be arranged directly as a result of MiFID II
- 47% expect to be using software solutions such as ingage which is similar to the number who want an alternative to sell-side intermediated meetings (42%)
- 62% of those surveyed do NOT have a corporate access software solution in place
- 56% of the companies provided feedback that the traditional institutional intermediated feedback system does NOT work well
- Two thirds believe that direct, confidential feedback is one of the key features of a solution
There is plenty of room for corporates and institutions to integrate software solutions into their offerings and expect this to be a key narrative in the weeks and months ahead.
We have always thought that the direct, confidential feedback feature is critical as feedback is the currency of the corporate/institutional non-deal roadshow process.
It also represents an important shift in dynamics between a relationship which has traditionally been intermediated by a research analyst, sales person, or corporate broker.
Forthcoming Celent report
My forthcoming report will take a look at new trends in data and how they will impact the buy side operating model and permeate index funds, smart-beta, and the impact on traditional stock-pickers.
One future area of opportunity is likely to emerge for traditional bottom-up stock pickers––particularly as market volatility returns.
At that point, the small/mid cap end of the market with low data insights from Alt-Data and reduced research analyst coverage could be a source of alpha.
Software platforms which connect institutions and under-researched companies will then find an entirely new area of growth.