GLOBAL – Deutsche Bank failed to make the cut in the latest Enhanced Analytics Initiative (EAI) list of top research providers on extra-financial issues (EFI) and intangibles between May 2005 and December 2005.

EAI, a €681bn collaboration between international asset owners and fund managers, seeks to promote better sell-side research on EFIs. Members include AGF Asset Management, the London Pension Fund Authority, the Universities Superannuation Scheme, PGGM and ABP.

The evaluation of research providers is carried out every six months by the Swiss-based specialist consultancy onValues Ltd, which analyses the quality and coverage of research output.

Deutsche was among the top six in the previous evaluation, but failed to appear in the new eight-strong list, which included Dresdner Kleinwort Wasserstein, Goldman Sachs, UBS Investment Research, WestLB, Berstein Research, CM-CIC Securities and newcomers JP Morgan and CLSA.

David Blood, lead director of EAI and managing partner of Generation Investment Management, said that the number of listed top-performing EFI research providers could vary.

He added that Deutsche’s non-appearance “doesn’t mean we don’t expect to see them next time round”.

Blood stated that the overall quality had improved “significantly” and that organisation’s realisation of goals had “exceeded expectations”.

He went on: “The research community absolutely embraced this Initiative in ways that are extremely gratifying.”

However, there were certain issues that could be covered more extensively. These included corporate governance matters, merger and acquisition activities and human capital management.

He stated that research providers don’t often cover issues such as difficulties experienced when businesses are integrated.

“The research community responds to the squeaky wheel,” he said, referring to the way researches often respond to client demands such as the coverage of quarterly earnings, and other short-term developments rather than the long-term.

EAI also announced today that Sogeposte, the €25.5bn asset management arm of La Banque Postale, is joining as a full member.

Blood said that EAI was working on bringing in new members over the next 12 to 24 months.

Deutsche Bank stated that no-one was available for comment.