Financial Times 2010 Fund Image summary of findings

FT Fund Image Survey 2010

Daniel RothmanDirector of Research, Americas

[email protected]

2

Background & Methodology

3

Methodology

Measuring the standing and profile of 24 leading asset management companies among US financial intermediaries.

Conducted by FT Global Research team

Survey Period: August 27, 2010-September 22, 2010

Online survey carried out in English

Incentive: Amazon Kindle and 1 year subscription to FT Kindle Edition

Sample Source: Money Media database select of 7,000 financial advisors recruited via email invitation

Sample size: 316 (response rate: ~5%)

Source: 2010 FT Fund Image Study

4

Fund Image 2010: Survey Contents

Asset Management firm awareness - 24Firm usage/consideration/previous usageAttributes most important in fund selection process - 13

Brand performance against these attributes -14Best firm in each attribute

Asset management firm rankingsBest overallLost/Losing confidence inRising stars

Product/ Asset allocation plans for next 6 monthsPreferred resources for investing/ market insightsUsage of new/social mediaHow FA’s spend their time at work


2010 FT Fund Image: 24 Brands Measured

6

Fund Image 2010: Respondent Profile

3%Other

3%Insurance Company

8%Regional Brokerage

9%Independent Brokerage

26%RIA Firm/ Financial Planner/ Banks

51%National Wirehouse

Type of Firm I Work For

57%15 Years or More

20%10 to Under 15 Years

15%5 to Under 10 Years

8%Less Than 5 Years

# Of Years as a Planner/ Advisor


7

6%$5 Billion or More

3%$1 Billion to $4.9 Billion

6%$500 Million to $999.9 Million

33%$100 Million to $499.9 Million

57%Less Than $100 Million

Value of Fund You Personally Manage or Have Influence Over

8%Other

40%Hybrid Compensation Structure

28%Majority Fee-Based

24%Majority Commission Based

How Are You Compensated For Your Services

Fund Image 2010: Respondent Profile


8

Majority of AUM are Advised on Behalf of Individuals

87%

11%

Q. What percentage of assets under advisement is advised on behalf of Individuals? On behalf of Institutions?

Individuals

Institutions


9

Attributes Most Important in Firm Selection Process

10

Most Important Drivers…Trustworthiness, Financial Strength/Long Term Stability & Reputation

81%

68%

68%

60%

56%

53%

51%

47%

45%

31%

30%

26%

20%

15%

25%

24%

30%

31%

30%

32%

41%

34%

31%

32%

28%

33%

3%

6%

6%

9%

10%

14%

14%

12%

18%

26%

33%

34%

36%

1%

1%

1%

1%

1%

2%

2%

2%

5%

4%

5%

6%

1%

1%

1%

1%

2%

6%

1%

6%

4%

Trustworthy

Financial strength and LT stability

Reputation

Risk Management

Transparent

Investment Process

Service

Performance leader

Fees

Range of funds

Innovative

Global presence

Sales / marketing materials

5 - High Importance 4 3 - Neutral 2 1 - Not important

Q. Please rate the importance of each of the following company attributes/ characteristics when considering an Asset Management firm to place your assets with.


81%

56%

68%

60%

53%

51%

45%

31%

30%

26%

20%

78%

65%

50%

37%

28%

18%

19%

13%

Trustworthy

Transparent

Trustworthy & transparent

Confidence in firm's LT stability

Risk Management

Investment Process

Service

Fees

Range of funds

Innovative

Global presence

Sales/marketing materials

2010

2009

Intermediary Trend in Attribute Importance: 2010 vs. 09

% Very Important

12

Brand Competition:

Looking at the 14 Measured & How They Rank on the Attributes

13

Brand Rankings Against Individual Attributes

85%

83%

81%

Franklin Templeton

PIMCO

Blackrock

88%

87%

86%

86%

82%

Fidelity

Blackrock

Franklin Templeton

PIMCO

J.P. Morgan Funds

Trustworthy Financial strength and long term stability

Q. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.


Contact Daniel for additional findings

14

92%

86%

83%

80%

PIMCO

Franklin Templeton

Blackrock

Fidelity

79%

75%

69%

PIMCO

Blackrock

Franklin Templeton

Reputation Risk ManagementQ. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.




15

72%

69%

65%

PIMCO

Franklin Templeton

Blackrock

87%

73%

PIMCO

Blackrock

Transparent Performance LeaderQ. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.




16

79%

72%

Blackrock

PIMCO

65%

64%

63%

Franklin Templeton

Blackrock

PIMCO

Investment Process ServiceQ. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.




17

64%

54%

53%

Fidelity

PIMCO

Blackrock

70%

64%

Blackrock

PIMCO

Fees InnovativeQ. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.




18

84%

73%

68%

Fidelity

Franklin Templeton

Blackrock

80%

79%

Franklin Templeton

Blackrock

Range of Funds Global PresenceQ. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.




19

64%

61%

60%

59%

59%

Blackrock

Fidelity

Franklin Templeton

J.P. Morgan Funds

PIMCO

Sales / marketing materials (insights, papers, etc.)

Q. Please rank how closely you associate each of the following attributes against each Asset Management company. All answering 4 or 5.




20

Product/ Asset Allocation Plans Over Next 6 Months

21

Allocation Shifts Planned: Asset Classes

15%

8%

8%

7%

5%

5%

4%

4%

3%

3%

3%

1%

51%

39%

43%

48%

30%

29%

39%

29%

33%

15%

20%

5%

29%

43%

40%

34%

61%

53%

47%

50%

49%

32%

48%

34%

4%

8%

8%

8%

4%

8%

7%

14%

13%

35%

24%

34%

1%

2%

1%

3%

2%

6%

2%

3%

2%

14%

5%

26%

Emerging Market Equities

Emerging Market Bonds

International Equities (developed markets)

US Equities

Options

Hedge Funds / Private Equity

Real Estate / REITs

US: Municipal Bonds

International Bonds (developed markets)

Cash / Short Term

US: Corporate Bonds

US: Treasuries

Significant Increase Moderate Increase Stay the SameModerate Decrease Significant Decrease

Q. Over the next 6 months, how do you expect each of your Product/ Asset Allocations to shift?


22

Trends in Allocation Plans: Asset Classes

66%

67%

47%

34%

51%

44%

55%

40%

35%

33%

34%

27%

20%

29%

26%

43%

55%

40%

45%

34%

46%

61%

57%

53%

52%

55%

5%

7%

10%

11%

9%

10%

11%

14%

6%

11%

14%

21%

24%

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2009

Increase Stay the Same Decrease



Emerging Market Equities

Emerging Market Bonds

Int’l Equities (Dev. Mkts)

US Equities

Options

Hedge Funds/Pvt EquityHedge Funds

Private Equity

23

Trends in Allocation Plans: Asset Classes - 2

43%

39%

33%

43%

36%

28%

18%

14%

23%

33%

6%

5%

47%

42%

50%

42%

49%

59%

32%

33%

48%

48%

34%

32%

9%

19%

17%

15%

15%

12%

49%

54%

29%

18%

60%

62%

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009

2010

2009




Real Estate/ REITs

US: Municipal Bonds

Int’l Bonds (Dev. Mkts)

Cash/ Short Term

US: Corporate Bonds

US: Treasuries

Real Estate

24

Allocation Shifts Planned: Products

12%

9%

9%

9%

9%

7%

4%

3%

44%

38%

36%

49%

39%

41%

9%

12%

36%

42%

51%

41%

41%

50%

70%

73%

6%

10%

3%

1%

9%

2%

11%

6%

2%

2%

1%

0%

2%

1%

5%

7%

Annuities

Separately Managed Accounts

ETFs - Passive managed

Retirement Plans (IRA, 401Ks)

Active Mutual Funds

ETFs - Active managed

Target Date Funds

Collective investment Trusts(CITs)

Significant Increase Moderate Increase Stay the SameModerate Decrease Significant Decrease



25

Trends in Allocation Plans: Products

47%

57%

48%

45%

60%

47%

48%

42%

31%

50%

51%

34%

41%

42%

11%

13%

3%

4%

5%

11%

11%

2010

2009

2010

2010

2009

2010

2009




Separately Managed Accts

ETFs Passively Managed

Active Mutual Funds

Managed Accts

ETFs

ETFs Actively Managed

26

ETF Shifts Planned: Segmented by Firm Type

9%

11%

5%

15%

3%

7%

9%

20%

36%

37%

38%

46%

27%

41%

44%

32%

40%

36%

51%

49%

57%

35%

64%

50%

42%

68%

40%

64%

3%

2%

4%

5%

2%

3%

1%

1%

2%

1%

2%

ETFs: Passive managed (NET)

National Wirehouse

Regional brokerage

Independent brokerage

RIA Firm / Financial Planner / Banks

ETFs: Active managed (NET)

National Wirehouse

Regional brokerage

Independent brokerage

RIA Firm / Financial Planner / Banks

Sign. Increase Mod. Increase Stay the Same Mod. Decrease Sign. Decrease



27

Resources for Investing/ Market Insights

28

Most Used Media

58%

57%

54%

43%

38%

34%

30%

19%

36%

36%

34%

48%

51%

49%

44%

59%

6%

6%

12%

9%

12%

16%

26%

22%

Data Providers (Lipper, Morningstar)

News / Business Websites (FT.com, Fundfire.com, Ignites.com)

Newspapers (WSJ, FT)

Asset Management Firm Materials / Websites

Business Magazines (Barron's, Business Week, etc)

Financial Trade Magazines / Journals (Registered Rep,InvestmentNews, etc)

Business Television Programs

Conferences or Sponsored Events

Use frequently Use occasionally Never Use

Q. How often do you use each of the information sources listed below for investing/ market insights?


29

40%

39%

36%

32%

19%

14%

13%

7%

Newspapers (WSJ, FT)

Data Providers (Lipper, Morningstar)

News/Business Websites (FT.com, Fundfire.com,Ignites.com)

Asset Management Firm Materials/Websites

Business Magazines (Barron's, Business Week, etc)

Business Television Programs

Conferences or Sponsored Events

Financial Trade Magazines/Journals (Registered Rep,InvestmentNews, etc)

Q. Please select the two (2) sources that are the most important for your investment / market knowledge?

Most Important Media Sources


30

Streaming, Social Media, Twitter for Work

31

New/Social Media Used for Work Purposes

33%

15%

13%

10%

8%

6%

4%

2%

53%

51%

31%

36%

34%

16%

22%

4%

14%

34%

56%

54%

58%

78%

75%

94%

Listen to / watch a webcast

View / send streaming video

Use professional networking sites(e.g., LinkedIn, Plaxo)

Listen to / download a podcast

Read blogs

Use social networking sites (e.g.,Facebook, MySpace)

Receive RSS feeds

Use Twitter

Frequently Sometimes Never

Q. How often do you do each of the following for work-related purposes?


32

Asset Management Firm:

- Familiarity

- Usage

33

Leading in Familiarity:American Funds, Franklin, PIMCO, Fidelity & BlackRock

72%

67%

67%

64%

60%

23%

27%

25%

30%

29%

4%

5%

7%

6%

10%

1%

1%

American Funds

Franklin Templeton

PIMCO

Fidelity

BlackRock

OppenheimerFunds

Nuveen Investments

Legg Mason

Invesco

Janus

Vanguard

J.P. Morgan Funds

Very familiar Fairly familiar Know just by name Not at all familiar

Q. How familiar are you with each of the Asset Management companies listed below? Please indicate how familiar you are, regardless of whether you use/have used them.


34

Familiarity Continued…

Ameriprise

Lord Abbett

Calamos

Putnam Investments

Alliance Bernstein

Dreyfus

T. Rowe Price

Schwab Funds

Russell Investments

Principal Funds

SSgA Funds

Aberdeen

Very familiar Fairly familiar Know just by name Not at all familiar

Q. How familiar are you with each of the Asset Management companies listed below? Please indicate how familiar you are, regardless of whether you use/have used them.


Contact Daniel for these findings

35

Brand Rankings - unaided

- Best Overall

- Lost/Losing Confidence

-Rising Stars

36

Best Overall Reputation - unaided


Q. Please list up to 3 Asset Management firms you consider to have the Best Overall Reputation


37

Lost/Losing Confidence in - unaided


Q. Please list up to 3 Asset Management firms you are have Lost or are Losing Confidence In


38


Rising Stars - unaided

Q. Please list up to 3 Asset Management firms you consider to be Rising Stars


THANK YOU

For more information please contact

Daniel RothmanDirector of Research, [email protected]

www.ft.com

Financial Times 2010 Fund Image summary of findings

Economy & Finance

Transcript of Financial Times 2010 Fund Image summary of findings