Credit Suisseâs two âInconvenient Mathâ reports explore the implications of costed carbon and highlight asymmetric market pricing. The two reports were authored by research analysts Samantha Dennison, Justin Speer and Kevin Cole, led by Dan Eggers. Dan Eggers said, âWe are delighted to receive this award as it recognises Credit Suisseâs increasing emphasis on the value of long-term, differentiated investment researchâ.
The winner receives a trophy, a lecture opportunity, positioning in The London Accord, and a meeting with a top Chief Investment Officer and their team. Previous winners include Credit Agricole Cheuvreux and Citigroup.
In the midst of todayâs credit crunch crises, financial markets have received criticism for not focusing on longer term issues such as human capital, climate change, or corporate governance. The Enhanced Analytics Initiative refutes some of that criticism. Four years ago, the 29 investment firms and pension funds who are members of the Enhanced Analytics Initiative pledged 5% of their brokerage commissions to rewarding long-term research that covers extra-financial issues. The Enhanced Analytics Initiative represents over â¬3 trillion in assets committed to promoting extra-financial and longer-term research.
David Russell, Co-Head of Responsible Investment at USS said: âTo make the best investment decisions, fund managers need the best analysis. USS believes that by highlighting excellence in individual reports, such as Credit Suisseâs, the Farsight Award supports the aims of the EAI in generating better, integrated long term extra financial research.â
The Farsight Award judges evaluated nine exemplary research reports submitted by the Enhanced Analytics Initiative from investment research firms such as Bernstein, Citigroup, Goldman Sachs, JP Morgan, Oddo, SociÃ©tÃ© GÃ©nÃ©rale and UBS, among others. The research covered issues such as environmental and social governance, automobile safety, utilities and CO2. The criteria for the Farsight Award are originality, quality, readability & clarity, sophistication & depth, and financial usefulness. The Farsight Award judges are:
â¦ Alice Chapple, Director of Sustainable Financial Markets at Forum for the Future;
â¦ Melissa Brown, Executive Director of the Association for Sustainable and Responsible Investment in Asia;
â¦ Professor Gwen Griffith-Dickson, Director, The Lokahi Foundation;
â¦ Simon Mills, Principal Policy Officer for Sustainable Development, City of London Corporation;
â¦ Jan-Peter Onstwedder, Project Director of the London Accord and former Global Head of Risk Management of BP plc;
â¦ Professor Avinash Persaud, Chairman of Intelligence Capital Limited;
â¦ Pierre Stiennon, Senior Investment Analyst - Responsible Investment, AXA Investment Managers;
â¦ Professor Michael Mainelli, Executive Chairman of Z/Yen Group Limited, who also chaired the panel of judges.
The judges were particularly pleased with Credit Suisseâs report as they felt it challenged some of the basic numerical assumptions investors might make. Alice Chapple commented that, âWe are looking for counter-intuitive, consensus-challenging thinking. Credit Suisse added a lot of value by sharing innovative insights, not just producing a market survey.â Jan-Peter Onstwedder noted that, âClimate change and CO2 issues for utilities now seem to be mainstream investment research topics. We hope that next yearâs contestants recognise this and find novel topics that generate robust investment debates.â
The Chairman of the Judges, Professor Michael Mainelli, said, âWe hope that the Farsight Award helps investment research institutions realise the hunger for longer-term perspectives and helps leading institutions gain recognition for their efforts.â
While this yearâs contestants were excellent, the judges would encourage investment researchers to take an even wider view of long-term research and extend more in areas of broader social concern such as scarcity and societal stress, e.g. obesity or corruption, than just carbon.