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FINalternatives: Principal Global Investors Selects Visible Alpha, ITG For Research Solution


Mark Dowd

Mark Dowd

Global institutional asset manager Principal Global Investors has selected investment research technology provider Visible Alpha and brokerage firm ITG for an enhanced process for managing equity broker and research evaluation as the January 2018 deadline for compliance with Europe’s MiFID II requirements looms.

The combination of Visible Alpha’s ONEaccess platform and ITG’s research payment account technology will allow for increased monitoring and transparency of research processes while also allowing the firm to meet their MiFID II requirements, Principal said in a statement.

The company’s approximately 100 equity research professionals will be able to discover corporate access events, set up custom valuation frameworks for their interactions with brokers and research providers, and oversee payment of these interactions in a seamless global workflow, it added.

Visible Alpha’s ONEaccess platform for research valuation allows managers to monitor, aggregate and analyze all of their interactions with research providers in one place. This ensures research consumption is aligned with a firm’s research budget, and scorecards and detailed metrics help facilitate the assessment of research quality.

ITG’s RPA, meanwhile, allows managers to fund their research consumption via either a CSA commission or a research charge alongside the execution in a manner that can be operationally similar to a traditional commission sharing agreement. The ITG RPA can also be funded with a direct research charge to investors or from a firm’s own P&L.

RPA accounts managed by ITG are held in a bank account in the name of the asset manager at one of several major global banks, segregated from brokers’ funds and controlled by the asset manager, the statement continued.

“Implementing a robust process for managing research consumption has been top-of-mind for us long before the MiFID II regulatory guidelines were revealed,” said Jennifer Sadiq, director of equities at Principal Global Investors, in the statement. “By partnering with ONEaccess and ITG, we feel confident about our ability to comply with MiFID II regulatory demands and implement a sustainable and transparent process for research consumption and valuation to best meet our client needs.”

Read the full article here.

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