We asked survey participants if they considered their broker a true business partner. This is a topic that arises often and is a point emphasized strongly by the sell-side in their marketing to the buy-side. A summary of responses is shown in the figure below.

While the buy-side is telling brokers left and right (from what we hear) that they value the broker – asset manager relationship and perceive brokers as “true business partners,” talk may be cheap.

Our survey results showed that only 54% of head or senior traders responding to our survey considered their brokers true business partners; 15% disagreed; and 31% were neutral on the topic.

While it is true that slightly over half of respondents believe brokers were partners, a slightly smaller but nearly equivalent proportion of respondents were effectively non-committal or outright disagreed.

This suggests both greater potential opportunity and risk in business relationships than the sell-side at the moment readily believes.

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