Asiamoney Brokers Poll 2017: Methodology

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Asiamoney’s 28th annual Brokers Poll invited chief investment officers, senior fund managers and senior investment analysts at fund management houses, hedge fund and private equity firms, insurance companies and wealth management houses in Asia-Pacific, Europe and North America. A total of 6,683 valid individual responses from 3,148 different institutions, including 450 hedge funds, were received.




brokers-pie-600

The questionnaire included 18 different sections as follows:

brokers_2017_sections-600

The questionnaire includes the following sections and categories:


Regional (Asia ex-Australia & Japan) section

• Most improved brokerage, across both research & sales, over the last 12 months


Regional Equity Sales

• Best overall regional brokerages for sales services

• Best regional sales people

• Best regional sales traders

• Best regional brokerages for execution

• Overall regional research for Asia (ex-Australia & Japan) as voted by most active traders*

• Overall regional sales for Asia (ex-Australia & Japan) as voted by most active traders*


* Overall regional research for Asia (ex-Australia & Japan) as voted by most active traders and overall regional sales for Asia (ex-Australia & Japan) as voted by most active traders. Asiamoney will tabulate ranks for the new categories using data from respondents: 
who previously have passed Asiamoney Brokers Poll auditing in 2016;
nominated several banks/brokers in both 2016 and 2017 Broker Polls;
are featured in client lists from various banks/brokers;
whose firms have over $2 billion in annual trading volume;
whose firms have over $501 million in AUM.

Regional Equity Research

The industries covered are those given the highest weighting in the MSCI Asia ex-Japan index as of May 2017 – please refer to the below classifications for industry definitions.

• Strategist 

• Economist

• Quantitative / technical analyst

• Automobiles & components analyst

• Banks analyst

• Casinos analyst

• Consumer discretionary analyst

• Consumer staples analyst

• Diversified financials analyst

• Energy analyst

• Healthcare analyst

• Industrial (aka conglomerates/capital goods) analyst

• Insurance analyst

• Materials analyst

• Real estate analyst

• Semiconductors & semiconductor equipment analyst

• Software, Internet & service analyst

• Technology hardware & equipment analyst

• Telecommunication services analyst

• Utilities analyst

• Most independent research brokerage

• Least independent research brokerage


Note: To qualify for the regional categories, firms, analysts and sales personnel need to receive votes from three or more sovereign countries/independent markets, where more than 40% of their votes come from investors based outside their home territory, to reflect that they are truly regional. For such purposes Hong Kong is not considered a sovereign country/independent market but an extension of the mainland China market. For example, for Chinese banks/brokers and their staff to be considered regional, more than 40% of their nominations for any particular category must originate from outside China and Hong Kong. 


Hedge Fund Section

Best for overall services in hedge fund

• Best bespoke research

• Best for depth and quality of inventory for stock loan

• Best for idea generation

• Best overall client service/ coverage

• Best sales coverage – cash

• Best trading execution – cash

• Best trading execution – derivatives


Prime Broking Section

Best for overall services in prime broking

• Best bespoke solutions for prime broking

• Best client service for prime broking

• Best for capital introduction

• Best for customized reporting

• Best for futures

• Best for quantitative research

• Best pricing for prime broking

• Best product innovation for prime broking

• Best risk management advisory services


Equity Derivatives Section

Best overall provider for equity derivatives

• Best after-sales services, including settlements and back-office

• Best electronic trading/ online platform

• Best for broadest product range

• Best ideas and most innovative products

• Best pricing and execution capabilities

• Best research and market coverage

• Best structuring capabilities taking into account client requirements

• Best training and educational support


Country/Market Sections

• Best local brokerage

• Most improved brokerage, across both research & sales, over the last 12 months


Equity Sales

• Best brokerage for sales trading

• Best execution

• Best overall sales service

• Best sales persons

• Best sales traders


Corporate Access

• Best for events and/or conferences

• Best for roadshows and company visits


Equity Research 

• Best analysts per sector

• Best research coverage for strategy, macroeconomics, small caps and each of the weighted and most frequently traded industries in that market

• Best overall country research

• Most independent research brokerage


Calculation of Results

Points for place

For all categories, a first place vote rewards three points; second place two points and third place one point. 

“One firm – one vote”

To avoid any one institution having more influence than others of equal size, multiple responses are fractioned according to the total number received from that one institution.

Asset size weightings

Each response was then weighted according to the institution’s approximate asset size (total unleveraged Asian equity funds under management) in Asia-Pacific (ex-Australia & Japan), in Australia or in Japan (depending upon the institution’s allocation of funds). The table below details the weightings according to asset size (hedge fund firms have been weighted at six times their assets to reflect their higher turnover rate):

brokers_2017_assets-600

Rankings for overall combined regional research & sales, overall regional research and overall regional sales

For the Asia (ex-Australia & Japan) rankings a country weighting system was used to compare brokerages as a whole in the region. The rationale is that the importance of markets varies across the region, so the points a brokerage receives in major markets should be weighted more than the points it receives in smaller markets. The MSCI AC Asia ex-Japan (as of May 2017) was used to achieve this. A similar sector weighting system was used to address the importance of the sectors within the region. Please refer to the following tables for a mathematical breakdown:

brokers_2017_weightings-research-600

brokers_2017_weightings_sales-600

For the Australia, China (A&B shares) and Japan overall combined research & sales rankings, the votes from the categories of best overall country research and best overall sales service for each market were simply added together.

Asiamoney would like to thank those who helped design the questionnaire, as well as all respondents for taking the time to complete and return it. The full results will be published in the 2017 Brokers Poll Full Report, available December 2017. 

brokers_2017_global-600

¹ Conglomerates refers to the Industry Industrial Conglomerates. It has been selected as a regional sector to replace Capital Goods to better reflect the industry sectors covered by brokers within the region. 

Disclaimer

This information is the property of Morgan Stanley Capital International Inc. (MSCI). It is provided for informational purposes only, and is not a recommendation to participate in any particular trading strategy. The information may not be used to verify or correct data, or any compilation of data or index or in the creation of any indices. Nor may it be used in the creating, writing, offering, trading, marketing or promotion of any financial instruments or products. This information is provided on an “as is” basis. Although MSCI shall obtain information from sources which MSCI considers reliable, neither MSCI, its affiliates nor any other party involved in the making or compiling of the information guarantees the accuracy and/or the completeness of any of this information. Neither MSCI, its affiliates nor any other party involved in the making or compiling of the information makes any representation or warranty, express or implied, as to the results to be obtained by any person or entity from any use of this information, and the user of this information assumes the entire risk of any use made of this information. Neither MSCI, its affiliates nor any other party involved in the making or compiling of the information makes any express or implied warranties, and MSCI, its affiliates and any other party involved in the making or compiling of the information hereby expressly disclaim all warranties of merchantability or fitness for a particular purpose with respect to any of this information. Without limiting any of the foregoing, in no event shall MSCI, its affiliates or any other party involved in the making or compiling of the information have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. Morgan Stanley Capital International, MSCI and all other service marks referred to herein are the exclusive property of MSCI and its affiliates. All MSCI indices are the exclusive property of MSCI and may not be used in any way without the express written permission of MSCI. MSCI is a leading provider of global indices and benchmark related products and services to investors worldwide. Morgan Stanley, a global financial services firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI, and The Capital Group Companies, Inc., a global investment management group, is the minority shareholder.