THE 2002 REUTERS INSTITUTIONAL INVESTOR EUROPEAN EQUITIES SURVEY RESULTS PUBLISHED TODAY

LONDON - Institutional Investor, the leading U.S. and international financial magazine publisher owned by Euromoney Institutional Investor PLC and Reuters, the financial information, news and technology group, today published its inaugural Reuters Institutional Investor European Equities Survey. This is the first of a series of global equity market surveys to be developed by Institutional Investor Research Group and sponsored by Reuters.

Institutional Investor acquired the surveys as part of its purchase of certain assets of Tempest Consultants in November 2001.

An excellent number of financial market respondents contributed to this survey, which includes a profile of Institutional Investor magazine's All-Europe Research Team. For All-Europe, over 1504 individuals from 404 buyside firms voted; 304 of Europe's largest quoted companies completed the corporate poll, and 481 analysts responded to the Sellside poll. This compares with participation of 187 buyside firms, 278 corporates and 489 sellside analysts in Reuters Survey of European Larger Companies 2001.

Top awards:

The All-Europe Research Team
1st Place - UBS Warburg

Overall Buyside Ranking
Pan European Research
1st Place - Credit Suisse First Boston

Overall Buyside Ranking
Pan-European Sales
1st Place - Deutsche Bank

Overall Buyside Ranking
Trading & Execution
1st Place - Morgan Stanley

Overall Corporate Ranking
The Buyside
1st Place - Fidelity Investments

Overall Corporate Ranking
Investment Banking
1st Place - Goldman Sachs International

Overall Corporate Ranking
Sellside Research
1st Place - Deutsche Bank

Overall Sellside Ranking
Corporate Investor Relations
1st Place - BMW Bayerische Motoren Werke AG

Key findings and trends include:

"Pan-Europeanisation" of the Market:


For the first time this year, Institutional Investor magazine's All-Europe Research Team ranked industry sector research solely on a Pan-European basis. This recognises that an integrated Pan-European structure is now the investment industry norm. Pan-European specialists now control most of the survey's weighted vote, and almost half of buyside respondents have restructured their trading desks around the Pan-European model.

Buyside Focus due to Corporate Financing Downturn:


In the current volatile markets, the buyside has assumed a new primacy in the priorities of sellside firms competing for commissions as corporate financing fees plummet, and of corporates seeking the stability of a broad institutional base. Meanwhile, the buyside itself, concerned about the objectivity of sellside investment advice, has built up its in-house research capability.

Given reduced corporate financing, commissions are once again crucial to the
sellside revenue mix. But fund managers are concentrating more of their payout among fewer firms, allocating 23% to their No. 1 broker and under 10% to No. 4. As institutions shorten their broker lists the need to stay in the Top Four has never been more critical.

Sellside, Buyside and Corporates Complex Dynamics:


The Survey's corporate rankings of sellside analysts capture the dynamics of
a complex relationship. Survey participants, including 94% of analysts, stress that buyside opinion of sellside analysts is what matters most. Still, 77% of the buyside and 67% of the sellside find value in a corporate view of analysts. As major sellside firms publish more sell recommendations in order to restore buyside confidence, few participants feel that corporates will react impartially. However, more then 90% of voters say that corporates are credible judges of sellside industry knowledge - the attribute that is most important to the buyside.

One-to-one vs. Large Group Meetings:


The survey expands its measures of sellside analysts' assessment of corporate investor relations. A notable dichotomy exists between corporates' preference for investor relations contacts via phone calls and group meetings and the analysts' for one-on-one meetings with the chief executive or CFO.

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