The EAI is an international collaboration between asset owners and asset managers aimed at encouraging better investment research.
The Enhanced Analytics Initiative is an international collaboration between asset owners and asset managers aimed at encouraging better investment research, in particular research that take account of the impact of extra-financial issues on long-term investment. The Initiative currently represents total assets under management of c. €1.8 trillion (c. US$2.4 trillion).
EAI seeks to address the absence of quality, long-term research which considers material extra-financial issues. The Initiative incentivises research providers to compile better and more detailed analysis of extra financial issues within mainstream research. Its impact depends on offering credible market incentives to interested and appropriate research agencies to encourage them to adapt their research process and to become more innovative.
Through participation in the Initiative, gain access to research that will help them to identify those sectors and companies that will out-perform over the long term and avoid those who will underperform. In the same way, members of EAI, in particular asset owners and passive fund manager members, are simply concerned to see more accurate pricing of stocks. For research providers, EAI also delivers reputational benefits for those who are successful at delivering this more complete analysis.
EAI's membership and the assets under management continue to grow as both pension funds and asset managers increasingly understand the importance of supporting change that ultimately promotes more informed investment decisions. For too long, asset owners and asset managers have accepted a situation where critical issues have not been considered as a necessary part of traditional fundamental analysis. The good news is that evidence suggests the broking community is already responding to these new incentives and that this Initiative comes at a very timely occasion.
In addition, we are starting to see asset owners, both members and non-members, building membership of EAI into their fund management selection criteria for mandate awards.
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The EAI is an international collaboration between asset owners and asset managers aimed at encouraging better investment research.