Bank of America leapfrogged rival BNP Paribas Exane to top a closely-watched ranking of analysts in Europe as research budgets for leading investment banks remain strained.
The US investment bank jumped from second to first in the Europe 2022 Institutional Investor rankings, ahead of BNP Paribas Exane and JPMorgan. The move marks a rapid rise up the rankings for Bank of America, which placed fifth in 2020.
Analysts from a handful of investment banks made the cut for the II rankings, often dubbed the City Oscars, which aims to recognise the sell-side analysts most highly regarded by the fund managers who purchase and use their stock tips. II said it took in votes from 4,692 portfolio managers and analysts from 1,696 companies.
Jeff Stent, a London-based consumer goods analyst at BNP Paribas Exane, was the top ranked analyst in 2022. He had finished second behind former Citigroup analyst, Mark Manduca, for the past two years. Manduca quit investment banking in 2021 to become chief investment officer at XPO Logistics.
Barclays analyst Warren Ackerman, who leads its consumer staples coverage, finished second this year, while JPMorgan’s Celine Pannuti was in third spot.
The II rankings are about more than just bragging rights over rivals. Banks have slashed their teams of analysts in Europe after the implementation of the second iteration of MiFID in 2018, which requires them to charge fund management clients for research separately from other trading charges. Top-ranked analysts are at a premium, and having a stable of well-regarded researchers helps attract fund managers’ strained budgets.
Since European rulebook MiFID II came into force in 2018, European fund managers have cut between 52% and 75% of their spend on research, according to research by Frost Consulting last published in 2020. They have cut the number of banks they use for research by as much as 70%.
Institutional Investor acquired rival Extel in 2018 and has run the ranking since.
Top 20 research analysts in developed Europe region:
1. Jeff Stent, BNP Paribas Exane
2. Warren Ackerman, Barclays
3. Celine Pannuti, JPMorgan
4. Elodie Rall, JPMorgan
5. Pinar Ergun, Morgan Stanley
6. Martin Deboo, Jefferies
7. Cedric Besnard, Citi
8. Guillaume Delmas, UBS
9. Graham Secker, Morgan Stanley
10. Edouard Aubin, Morgan Stanley
11. Mislav Matejka, JPMorgan
12. Sebastian Raedler, BofA Securities
13. Emmanuel Cau, Barclays
14. Andreas Willi, JPMorgan
15. Ashley Wallace, BofA Securities
16. Edward Mundy, Jefferies
17. Robert Joynson, BNP Paribas Exane
18. Dennis Jose, BNP Paribas Exane
19. Simon Hales, Citi
20. Alexandre Faure, BNP Paribas Exane
Top 10 investment banks for developed Europe research (2021 position in brackets):
1. (2) BofA Securities
2. (1) BNP Paribas Exane
3. (4) JPMorgan
=4. (5) Morgan Stanley
=4. (3) UBS
6. (8) Barclays
7. (6) Citi
8. (9) Jefferies
=9. (11) Bernstein
=9. (7) Credit Suisse
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