Based on stringent measures

The rankings and other results presented in this survey are drawn entirely from a confidential questionnaire process conducted with the domestic institutional clients of SA stockbroker firms.

The structure of the survey is developed by the Financial Mail in conjunction with research house Intellidex.

The survey was conducted through an online questionnaire process. The Intellidex team collected the results and analysed them to determine the rankings and ratings.

The intention of the survey is to capture each institution’s house view of the brokerage services it obtains, rather than the views of its individual fund managers.

However, the online questionnaire made it possible for multiple individuals at an institution to complete different sections. This allows for specialists to contribute their insights in particular sectors.

Questionnaires were completed by 45 institutional respondents before the deadline. Respondents included asset managers, life insurance companies, some wealth managers and hedge funds. We attempted to include all of the largest fund managers by assets.

According to the information submitted, the respondents manage a total of R4.7 trillion in domestic assets, and spend well over R1.9bn in brokerage each year.

Before compiling the questionnaire, Intellidex asked all institutional brokers to submit a list of their analysts and the sectors they covered in the past year. This year 35 firms submitted lists, three more than last year. Those names and sectors were then placed into lists on the questionnaire.

This year, two sell-side firms, Investec and Bank of America Merrill Lynch, did not

‘‘ BROKERS WILL FOCUS ON CLIENTS WHO ARE WILLING TO PAY FOR RESEARCH

provide us with names of analysts. Institutional investors were nevertheless encouraged to insert the names of analysts into our questionnaires and the resulting rankings in this survey reflect the firms’ performance on that basis.

Some changes were made to the sectors this year following feedback from the industry.

Retailers & Household Goods was split into two: Household Goods Retailers and General Retailers

Business Support Services & Packaging and Diversified Industrials & Transportation were merged into Diversified Industrials

Electronic & Electrical Equipment and Computer Services were merged into Computing & Electronics

For each research sector, respondents were asked to rank the five best firms and, separately, the five best analysts, using the following criteria:

Quality of written fundamental research in terms of content and value;

Accuracy of forecasts and buy/sell recommendations; useful ideas;

Effective communication, both written and verbal; and

Consistency over the past 12 months.