EFG Hermes’ Research division continues to be the region’s leading provider of in-depth, real-time market insights, guiding the Firm’s various divisions and ever-growing client base when making financial decisions. The division’s research efforts bring together the perspectives of a diverse range of expert analysts, from fundamental and quantitative to economic and strategy research. Their common focus is identifying opportunities and delivering better investment solutions and results for the division’s client base. This has proved particularly invaluable considering the unprecedented circumstances seen over the past couple of years and the subsequent impact on global markets. The division’s growing ability to constantly expand its coverage and product offering, whilst remaining at the forefront of an increasingly competitive industry, has cemented its status in the past couple of years as the region’s frontrunner in equity and strategy research. The team covers 319 stocks in 40 industries, across 26 markets, as of the end of 2021.

As the world began gradually returning to normalcy and health and travel restrictions slowly eased post the initial outbreak of the COVID-19 pandemic, 2021 saw more recovery and sentiment trickle back into the markets under the division’s coverage. EFG Hermes Research was quick to track any market developments, and continued to extend its research coverage and enhance the quality of its products. The division, which currently has an on-ground presence in Egypt, Saudi Arabia, the UAE, Kenya, Nigeria, Bangladesh, and Pakistan, was also a key driver of the Firm’s IPO executions, as ECM activity picked up across markets during the year. In 2021, the division initiated coverage on 25 new stocks from key MENA and frontier markets.

This year witnessed a shift in the research focus of the division from Africa to Asia. The research team are looking to expand their existing footprint in attractive Asian markets with promising prospects, rolling out a substantial push on coverage in Vietnam, whilst looking at other potential markets. At the same time, Environmental, Social, and Governance (ESG) received increased attention this year, as regulatory bodies begin to codify ESG reporting standards and investors turn to more sustainable investment solutions as part of their investment strategies. Analysts at EFG Hermes Research are now progressively integrating ESG aspects in their models and hence valuation metrics, adapting to the evolving needs of the division’s ever growing and diverse client base.

The department’s ability to adapt to changing market dynamics and react to the developing needs of its increasingly varied client base, has earned EFG Hermes numerous accolades over the years. EFG Hermes Research maintained its ranking in the Institutional Investor 2021 Poll, once again named the Top Frontier Research House and ranked second in MENA. The division also secured three out of five in the Top Analysts in the Frontier Markets category, including the number one position, in the same poll. Additionally, the team secured the Number 1 Research House position in the African EX-SA Equities by Financial Mail Top Analyst Awards 2021. The Firm’s Asian foothold also gained recognition, with a third-place ranking for the Best Brokerage for Research in Pakistan by the 2021 Asiamoney Brokers Poll.

The unprecedented circumstances witnessed over the past couple of years have impacted all markets around the globe. However, during 2021, significant recovery was witnessed in earnings, as markets recovered following vaccine rollouts and reduced restrictions. Clients, investors, and analysts continued to look to research houses for incisive, accurate, and timely research to help them navigate volatile markets, and EFG Hermes Research is ideally positioned to capture this demand. With a positive global outlook, the division is planning a considerable push in 2022, broadening the variety of its products, and providing more diversified insights for the Firm’s client base and divisions. EFG Hermes Research will further incorporate ESG metrics in its stock coverage in the upcoming year, which is of increasing importance to the division’s clients. The division is additionally anticipating a wave of initiations, on the expected rollout of IPOs in the UAE, KSA, Kuwait, amongst others. EFG Hermes Research will continue to expand its frontier coverage, with a particular focus on Asian stocks.