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Article: Money Managers Bulk Up Research Teams: As Soft Dollars Shrivel, Internal Research Expands.
- Article from:
- Investment Management Weekly
- Article date:
- March 13, 2006
- Author:
CopyrightCOPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As the soft dollar squeeze forces investment management firms to show exactly how they spend their commission fees, the reliance on in-house has increased, accord- ing to a recent report by Integrity Research Associates.
"Are you going to pay for external research that you can't control, or internal research, which you can control?" said Michael Mayhew, CEO of the Darien, Conn.-based research and ratings company.
By 2009, money managers will generate 41% of the research they rely on in-house. That number has grown from 26.2% in 2004, according to the report.
This increase will contribute to a continuing decline in sell-side research, with many ...