Integrity Research Overview Integrity Research Associates is an information and solutions provider specializing in sourcing bespoke and alternative

research. Founded in 2003, it tracks over 3,500 alternative research providers, ranging from boutiques to channel checkers to industry consultants. One challenge for investors is finding differentiated, non-consensus research. Most investors select their research through trial and error, which is time consuming and costly. Integrity offers a better solution. Another challenge is mitigating risk from external research. Many independent research sources are unregulated, and while they may have robust compliance policies and procedures, there is no regulatory oversight. Integrity offers assistance to compliance professionals in reviewing and evaluating the compliance capabilities of alternative research providers. Asset manager clients also leverage Integritys expertise to stretch commission dollars. Integritys knowledge of research the spending levels associated with research firms helps it recommend ways to save commissions.
Integrity Value Propositions

The flagship service is Integrity ResearchSelect, which is a high touch retainer allowing clients to tap into the full resources of Integrity finding high quality research tailored to specific investment requirements, reviewing research compliance and getting the most out of commission spending.

1. We help analysts and PMs complete their investment mosaic by recommending differentiated, non-traditional research; 2. We help research directors, compliance and legal to evaluate the risks associated with alternative research by providing robust reviews of the research firms compliance policies, procedures and culture;

Integrity Research evaluates research firms 3. We help research directors, CFOs and COOs manage based on feedback from users and costs by recommending alternative providers that can save comparative analysis with similar research money or negotiation strategies with existing providers. firms. For example, our assessment of expert networks is based on surveys of users as well as examining each firm's compliance capabilities, sector coverage and other services. This approach is the core of Integrity's process for analyzing research firms. For selected research segments, Integrity publishes this analysis in Integrity ResearchFocus reports, which are in-depth reviews of research firms in a given segment such as policy research, channel check firms, survey firms, or small cap research. Integrity ResearchComplianceSM provides support for compliance professionals in assessing risks associated with using external research firms. Integritys compliance reviews focus not only on policies but also on procedures, practices and compliance culture and include interviews with current and former employees, background checks of key personnel, and review of organizational structure, regulatory infractions, research products and practices. The service can be included in a ResearchSelect retainer or separately. Integrity is based in New York and has nine employees. Its three principals have, collectively, over 70 years experience in the research industry. In 2008, the firm received a minority investment from UBS. Integrity also provides daily news and commentary on developments in the research industry, Integrity ResearchWatch, which is widely followed in the research community.

Client Examples
1. Integrity helps analysts and PMs complete their investment mosaic by recommending safe sources of differentiated, non-traditional research.
Example: A hedge fund analyst wanted context on the emerging landscape for 4G technology, intellectual property issues, ongoing litigation, and the overall market outlook for 4G. Integrity recommended two types of boutique firms: wireless market research firms and intellectual property consultancy firms. The wireless market research firms provided reports, data, and consultancy services to aid the client in estimating the overall demand and market outlook for 4G technology in the US and worldwide. The IP consultancies helped the client to evaluate the patents owned by the major players in the wireless industry and the likely outcomes of litigation.

2. It helps compliance professionals evaluate the risks associated with alternative research by providing robust reviews of the research firms compliance policies, procedures and culture. Example: The CFO of a hedge fund asked Integrity to conduct reviews of the firms high risk research providers, including interviews of current and former employees and audits of actual compliance practices. For each firm, Integrity highlighted any deficiencies and deviations from industry standards. 3. Integrity helps research directors and CFOs manage costs and their research budget by analyzing their current research expenditure and recommending alternative providers that can save money.
Example: The COO of a mutual fund requested assistance in reviewing external research providers. The firm had a research budget of $20 million and paid more than 100 research providers. Their goal was to cut their research spend to $15 million while maintaining current service levels as much as possible. Integrity successfully identified areas of duplication and in some cases recommended substitutions to help the client achieve their goal. Integritys Research Universe
Economic Capital Flows General Gov't/Legislative Analysis Investment Strategy Political/Country Risk Fundamental Credit Analysis General Sector Specialist Primary Access to Management Channel Checking Data Mining Expert Networks Investigative Political Intelligence Surveys N/A 416 11 198 49 107 51 704 35 488 181 351 7 61 21 50 8 7 197 106

Research Providers By Category

24%

30%

Technical

Quantitative Economic

15% 18%

6% 7%

Primary Specialized

Quantitative Credit/Default EVA Financial Models General Valuation

161 10 8 15 77 51

Specialized Commodity Corporate Governance Deception Training Distressed/Bankruptcy ESG

573 20 17 4 12 50

Specialized (Cont'd) Forensic Industry Consulting Firms Insider Analysis IPO Litigation Analysis Management Quality Merger/Risk Arb Other Outsourced Research Patent Analysis Risk Management Short Ideas Spin Off Analysis Technical Total Classified

573 36 269 16 18 14 5 22 28 33 8 4 13 4 136 2447

Integrity ResearchSelect and Integrity ResearchFocus are registered trademarks of Integrity Research Associates LLC. Integrity ResearchCompliance is a service mark of Integrity Research Associates LLC.