• 70% of large asset managers believe AI-generated “maintenance” coverage will become a baseline, with payments increasingly reserved for access to top analysts.
• 80% of asset managers with AUM above $150bn expect only slight increases in research budgets over the next two years, but anticipate significant changes in spend allocation and focus on differentiated, tenured analysts.
• Between 2023 and 2026, 736 mid-tier analysts left the market, resulting in a leaner sell side structure prioritising senior analysts and junior support teams.

Substantive Research, the research and market data discovery and pricing analytics provider, announces the launch of its new data-driven analyst rankings, designed to address the evolving needs of asset managers and brokers in an AI-enabled investment research landscape. The initiative follows extensive and ongoing consultation with leading global asset managers and brokers.

Accurate insights into the penetration of analyst research into buy side investment processes has never been more important, as technology is fundamentally changing how research is created and consumed. Substantive Research’s data shows that for asset management firms with $150bn AUM and above , 80% indicated that while overall research budgets would only slightly increase, the allocation within those budgets would shift towards rewarding differentiated, tenured analysts. 70% expect “maintenance” research to become commoditised and AI-generated, with direct analyst access becoming increasingly scarce and valuable.

Substantive Research’s data also reveals a significant shift in sell side team structures, with 736 mid-tier analysts exiting the market between 2023 and 2026. This has been a consequence of a focus on retaining senior analysts and their junior support, removing a middle tier from many sector coverage teams.

The new ranking methodology leverages data already provided by Substantive Research’s buy side clients, offering a transparent and trusted alternative that both buy and sell side participants can incorporate into their research processes.

Mike Carrodus, CEO of Substantive Research, said: “The industry needs a ranking system that reflects the true value and impact of analysts in today’s market. Our data-driven approach, developed in collaboration with leading brokers and asset managers, will provide actionable insights and help both sides of the market make informed decisions in an increasingly AI-driven environment.”

Substantive Research’s first set of analyst rankings will be released to clients in November 2026.

Source: Substantive Research