Communication Overload

The ever-growing demand for rich, timely market data -- in conjunction with the speed and ease of modern communications, including e-mail and instant messaging -- has created a situation in which buy-side fund managers are being inundated with information, according to a recent study from APR Smartlogik called "The Relevance Rift." The study, which examined the top 50 U.K.-based fund management companies, reveals that only 32 percent of information that fund managers receive from the sell side is relevant to their immediate needs, down from 54 percent in 2002.

This presents a problem for sell-side analysts, claims the report. If an analyst doesn't provide relevant, high-quality and timely data to the buy side, and thus encourage fund managers to process transactions through their enterprise, the fund managers will take their business elsewhere. <<<