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This approach has the additional benefit of alleviating the research department or analyst from the burden of time consuming research into trends and technological enablers and allow him to concentrate on addressing the investment needs of Institutional clients. To this end it will enable clients, and the analyst for that matter, to differentiate themselves from other equity research offerings.
The concept of joint research may appear strange at first, insofar as that analysts typically write all their own material. Investech's experience has shown that for telecommunications, being a global industry, this approach yields better results and has wider client support than for "sell-side" only research.
The winning aspect for the sell side team is that they are relieved of the burden of answering "educational style" questions, or writing tutorials, rather than focusing on equity analysis and research. Investech is able to address these side issues, whilst adding value to the joint offering.
The research would be commercially focused in so far that it will enable the analyst to dovetail his investment thesis and company analysis and emerge with an insightful piece of marketable research.
Themes can be agreed with the analysts globally or via the relevant regional Telecomms research heads. Investech could write on trends / themes/ techno-economic implications in the technology of the industry; leaving analysts to write on investment case impact of that technology on their stocks.
Alternatively, the research offering may be purely thematic providing insight into the sector that is different from the consensus view and identifying interstices, timing mechanisms and/or over valuations or under valuations within the sector that may culminate in trading opportunities. that will assist in increasing the order flow from the "buy-side" to the "sell-side".
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