The Enhanced Analytics Initiative (EAI), an alliance of asset owners and managers who collectively represent more than 1.9 trillion (US$ 2.6 trillion) in assets, commissioned onValues to produce a case study of the quality of investment research on mergers and acquisitions (M&A). The study investigated whether research providers covering M&A transactions are addressing the full range of issues that may be material to long-term investors. Depending on the type of M&A activity, these issues might include the impact of combining different corporate governance regimes and corporate cultures, the role of management, potential impacts on intangible assets, and environmental liabilities acquired in a transaction. The study's main conclusions are presented in the public summary report below
Summary report on EAI case study
The survey per end of December of 2006 shows an impressive increase in the size of this market compared to the previous year (17.9 billion compared to 10.6 billion CHF). The survey covered 21 providers and different investment products and services (funds, mandates, structured products). The growth in volume of ESG-inclusive funds in 2006 (+55.7%) was more than five times as big as the growth of the overall Swiss fund market. An increasing interest by private banking clients and the growing demand for structured products and funds dedicated to sustainable themes, such as alternative energy and water, were seen as being main drivers for this development.
In the latest edition of the Environmental Finance magazine, Gordon Hagart and Ivo Knoepfel provide an overview and assessment of current trends in the ESG-inclusive investment field. More sophisticated applications of environmental, social and governance (ESG) information to a wider range of asset classes and financial products could mean that in future ESG issues increasingly become drivers of financial product innovation rather than niche concerns, argue the authors.
Environmental Finance article
The Enhanced Analytics Initiative (EAI) yesterday announced the results of its latest evaluation of investment research providers, which is based on analysis provided by onValues. On the eve of its second anniversary, the Initiative has seen a surge in new members in the past months and now represents total assets under management of €1.8 trillion. The EAI is an international collaboration between asset owners and asset managers aimed at encouraging better investment research, in particular research that takes account of the impact of extra-financial issues on long-term investment. The EAI incentivises research providers to provide better analysis of extra financial issues within mainstream research.
For further information on EAI: http://www.enhanced-analytics.com