21 June, 2004
SHORE
AFFILIATE REPORTS US EQUITY RESEARCH SPEND DOUBLING TO $19
BILLION BY 2008
WESTPORT, CONNECTICUT, 21 JUNE
US investors are projected to spend almost $19 billion on
equity research in 2008 — more than double the $9.2 billion
that was spent in 2003.
This forecast is included in a newly released research
report titled the 2004 US Equity Research Industry Outlook,
written by Integrity Research Associates, LLC, a new affiliate
team of Shore Communications Inc., a leading research and
advisory firm covering content and related technologies. The
first of its kind report describes the evolution of dramatic
changes to equity research, analyzes the forces behind these
changes, outlines the evolution of critical challenges facing
the three major sources of equity research -- sell-side firms,
buy-side firms, and independent research firms -- and forecasts
the market’s growth over the next five years.
“The equity research industry is undergoing a significant
transition,” notes Michael W. Mayhew, CEO of Integrity Research
Associates. “Our analysis shows that sell-side research —
conducted primarily by Wall Street investment banks and
brokerage firms — has seen its heyday.” Although sell-side
research revenue is projected to almost double between 2003 and
2008, its share of the equity research market will drop from
64.2% to 54% during that same period.
Mayhew explains, “sell-side research will lose market share
to both buy-side and independent research firms, not because of
a loss in credibility or lack of quality, but because their
current business model no longer supports the high cost of
producing it.” Integrity estimates that Wall Street spent $9.1
billion in 2003 to produce the research it gives away to
buy-side and retail investors.
The big gainer in market share is the independent research
segment –organizations that market their research directly to
institutional investors or indirectly through brokerage firms
that don’t produce their own research. Independent research
revenue is expected to increase by 195% in the next five years,
from $1.38 billion in 2003 to $4.07 billion in 2008, a gain in
market share from 15% to 21.4%.
Integrity Research Associates, LLC, is the premier ratings,
analysis, and consulting firm for the equity research industry.
Integrity publishes syndicated research reports; provides an
online database of research firm reviews, analysis, and
ratings; and offers consulting services to banks, money
management firms, broker/dealers, and hedge funds. Integrity
recently joined Shore Communications Inc.’s affiliate team
program to participate in the cooperative development and
marketing of leading insights into today’s major content and
content technology producers and consumers.
For more information on how to purchase this research
report, go to
http://www.shore.com/research/current/reports/IRA200401.html
ABOUT SHORE
Shore Communications Inc. is a leading research and advisory
service focusing on organizations that develop, purchase and
use professionally-oriented content and the technologies that
facilitate its use in individual and collaborative
environments. Shore focuses on the complex interplay between
content, technology and people that creates value for
organizations and individuals in today's marketplace. Shore’s
research, commentary, private consulting and confidential
advisory services provide valuable insights into the products,
practices and behaviors that maximize the value of content and
related technologies through all stages of its creation,
organization, marketing, deployment and use.
The press may contact Michael Mayhew via phone at
888.757.4011, Michael.Mayhew@integrity-research.com.
For more information about Shore and report purchases,
please contact John Blossom at 203.226.9488, jblossom@shore.com,
or visit
http://shore.com/us/resources/press/.
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