Worldwide Professional Investment Community Study 2009/10 (PIC) Study of the worlds most senior...

Worldwide Professional Investment Community Study 2009/10 (PIC)

Study of the world’s most senior Professional Investors

Alex FumagalliSenior Research ExecutiveMay 2010

Contents

Background – what the PIC study is

Methodology

Importance of PIC study & areas covered

Audience composition

Market sentiment – what C-Suite level executives think about the current market situation

Top line media consumption results – Print & Online

Summary of findings

What is PIC 2009/10?

Overall, PIC provides insights of the composition of the professional investment community worldwide as well as measuring media consumption of this audience.

The Erdos & Morgan Worldwide Professional Investment Community study has been conducted biennially since 1987.

The eleventh in the series, the survey targets a universe of individuals from the buyside in companies with a minimum of US$100 million under management serving one of the following five functions:AnalystChief Investment OfficerDirector of ResearchHead of TradingPortfolio Manager

Universe: 41,386 (Sample size: 3,956)

Methodology

The sample was obtained from Ipreo* and the study was conducted entirely in English

An e-mail invitation was sent to the entire sample on September 22, 2009 asking them to participate in the online survey. This was followed up with reminder invitations. Fieldwork was completed by December 22, 2009

A total of 14,148 individuals received an invitation to participate. By the study closing date, 3,956 useable questionnaire had been received. This represent a net effective response rate of 33.7%

*Ipreo replaces Thomson Financial as study’s sample supplier

Why is this study important?

•The survey is the only source of media information on the most important 41,000 asset fund managers worldwide and is therefore an

invaluable planning tool

•The study has been running for more than 20 years

•PIC is now firmly established as the premier Global survey at reaching this “hard to reach” audience

•It covers the top end of this audience in a reliable way, with a very robust sample size

•For the first time, it now measures website data

Areas Covered

Job Function

Type of Firm

Total Assets Firm Has Under Management

Total Equity Assets Firm Has Under Management

Value of Funds Personally Managed or have influence over

Types of funds Personally Managed or have influence over

Investment Orientation

Investment Style

Industries Covered/Followed

Media Consumption

Audience composition

PIC Audience

Not many of them, only 41,386, but…

They manage/influence total Assets worth

US $49,422,750,711,808 [US $49.4 trillion]

On average they manage/influence Assets worth

US $1,214,390,272 [US $1.2 billion]

59%

20%

12%9%

58%

18%

13%11%

North America Continental Europe UK/ROI Asia/Pacific

2007/08 2009/10Universe: 57,285 Universe: 41,386

Universe composition & YoY change

Source: PIC 2009/10 [Universe 41,386 – Sample 3,956]

Note: PIC 2009/10 shows a drop of 28% in total population. While it is possible that this difference might be caused by using two different study’s sample suppliers, this appears to be in line with expectations given current marketplace realities

Hedge Fund21%

Mutual Fund70%

Bank-Trust3%

Pension Funds2%

Insurance2%

Endowment/Foundation–Private1%

Proprietary/Sovereign Wealth Fund/Venture Capital/Private

Equity1%

Universe composition – Type of firms

The vast majority of the PIC universe (91%) is made up by Mutual or Hedge Fund firms


United StatesTotal assets mngd: US $19 trillionAvg per person: US $864 million

Value of assets managed by the PIC audience by region

UK/ROITotal assets mngd: US $9.4 trillion

Avg per person: US $1.7 billion

Europe ex UK/ROITotal assets mngd: US $11.1 trillion

Avg per person: US $1.5 billion

02468

101214161820

Japan Asia/Pac(ex

Japan)

UK/ROI ContEurope

US

0

0.5

1

1.5

2

2.5Total assets Avg assets Asia Pacific ex Japan

Total assets mngd: US $6.1 trillionAvg per person: US $1.8 billion

JapanTotal assets mngd: US $1.7 trillion

Avg per person: US $2 bn


Despite the fact that the total value of Asset Funds managed has decreased, the average value of Asset Funds managed has remained unchanged


67.1

1.2

28.5

0.896

15.5

1.4

11.5

1.7

6

1.6

3

22

1.7

1.2

1.8

6.1

1.7

9.4

1.5

11.1

0.864

19.0

49.4Total Assets mngd

Avg p.p.

Total Assets mngd

Avg p.p.

Total Assets mngd

Avg p.p.

Total Assets mngd

Avg p.p.

Total Assets mngd

Avg p.p.

Total Assets mngd

Avg p.p.

2009/102007/08

USA

Cont Europe

UK/ROI

Asia/Pacific (ex Japan)

Japan

Not surprisingly the value of Total Asset Funds managed by the PIC audience has declined from 2007/08 mainly due to a decrease in total audience.What hasn’t changed is the value of those who make up the PIC audience

Global- 36%

- 50%

- 40%

- 22%

+2%

-43%

Total Assets mngd (US$ Trillion)

Avp per person (p.p). (US$ Billion)

n/c

-4%

+7%

n/c

+13%

n/c

Market Sentiment…

14

‘Confidence in the bank’s long term stability’ - Trust - is the most important attribute when choosing a firm to work with

Q. Now thinking of when you are working with banks, please rank how important these attributes are when choosing a firm to work with?

14Base: All global respondents (131)

15

In 2007, Trust was at the same level as Innovative and Adaptive is today

Q. Now thinking of when you are working with banks, please rank how important these attributes are when choosing a firm to work with? % stating “5” (highly important)

Base: All global respondents (131)

8%-11%

8%-12%

4%-12%

9%-14%

8%-16%

9%-16%

3%-16%

6%-16%

6%-18%

3%-20%

6%-21%

3%-32%

5%-36%

-35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15%

Commercial banking

Investment banking

Insurance

Management consulting

Telecom

Advertising/communications

Employee benefit providers

External auditor

Technology consulting

Legal services

Logistics/supply chain

Technology (software)

Technology (hardware)

% Decrease Trust % Increase Trust

Q. Over the past year, how has the level of trust in your lead provider in the following categories changed?

Trust levels – changes in past 12 months

Source: Financial Times “Global C-Suite Sentiment Survey” 2003 to 2009

June 23-July 17 2009 470 total respondents

Trust in all areas has

been decimated

Q.Over the next year, do you expect the following categories of providers to become more or less critical to your business strategy?

Marketing/PR- critical to success

11%-18%

11%-25%

12%-14%

13%-12%

17%-11%

17%-11%

17%-20%

18%-9%

19%-17%

20%-11%

21%-13%

30%-9%

34%-12%Advertising/communications

Technology (software)

Commercial banking

Technology (hardware)

Technology consulting

Telecommunications

Investment banking

Legal services

Logistics/supply chain

Insurance

External auditor

Management consulting

Employee benefit providers

All respondents % Less critical % More critical

Most critical to success of

business strategy

Source: Financial Times “Global C-Suite Sentiment Survey” 2003 to 2009

June 23-July 17 2009 470 total respondents

Most Credible Media Owner

41%

35%

30%

27%

22%

20%

20%

15%

13%

11%

11%

10%

9%

6%

5%

5%

5%

5%

3%

Financial Times

WSJ (WW)

The Economist

Institutional Investor

Financial Analysts Journal

Fortune

Bloomberg Markets

The New York Times

Barron’s

Time

Pensions & Investments

Investor’s Business Daily

Forbes

International Herald Tribune

BusinessWeek

The Times

Newsweek

The Daily Telegraph

Sydney Morning Herald

The FT is regarded as the most Credible media owner by the most influential* professional Investors on the survey

This is a reflection of the FT high quality journalism and independence.

Credible in its reporting of financial & economic issues

Source: PIC 2009/10 [Universe 2,533 – Sample 282]

*Those who personally manage asset funds worth US $5billion or more

Top-line media consumption

59%

40%

35%

34%

34%

30%

28%

24%

24%

23%

22%

16%

12%

12%

The Wall StreetJournal (WW)

The Economist

Financial Times

Bloomberg Markets


BusinessWeek

Barron’s

Forbes

The New York Times

Fortune

Financial AnalystsJournal

Pensions &Investments

Investor’s BusinessDaily

Time

33%

29%

26%

17%

16%

16%

10%

8%

7%

6%

5%

4%

4%

4%

3%

wsj.com (WW)

bloomberg.com

finance.yahoo.com

ft.com

nytimes.com

cnbc.com

google.com/finance

online.barrons.com

reuters.com

seekingalpha.com

morningstar.com

economist.com

CNNMoney.com

marketwatch.com

europe.wsj.com

Global Reach

Print (AIR) Websites (visited yesterday)

The FT is now the third most read publication on this study, up 3 positions from the 2007/08 study, overtaking BusinessWeek, Bloomberg Markets and the Institutional Investor in the process

FT.com is the 4th most visited site by professional investors worldwide and it is the 3rd most visited print websites


Survey on Survey Coverage ChangeThe FT is the only title to increase coverage amongst this set of titles

0%

0%

2%

-3%

-3%

-14%

-4%

-8%

-2%

-3%

-1%

-4%

-4%

-2%

Reach % change (2007/08 – 2009/10) % Reach

2007/08 2009/10

The Wall Street Journal (WW) 59.2 59.1

The Economist 40.1 40.2

Financial Times 33.7 34.5

Bloomberg Markets 35.1 33.9

Institutional Investor 34.9 33.8

BusinessWeek 34.9 30.1

Barron’s 29.2 28.1

Forbes 26.4 24.2

The New York Times 24.2 23.8

Fortune 23.4 22.6

Financial Analysts Journal 22.5 22.2

Pensions & Investments 16.6 15.9

Investor’s Business Daily 12.9 12.4

Time 12.3 12.0

48%

42%

35%

32%

25%

11%

11%

10%

7%

7%

7%

6%

6%

6%

Financial Times

The Economist

Bloomberg Markets

WSJ (WW)


The Times

BusinessWeek

Financial AnalystsJournal

Les Echos

Fortune

Time

IPE

Forbes

The Globe and Mail

25.7%

25.6%

15.5%

7.0%

5.3%

4.6%

4.1%

4.0%

3.5%

3.5%

3.3%

3.2%

3.2%

ft.com

bloomberg.com

wsj.com (WW)

guardian.co.uk

reuters.com

timesonline.co.uk

lemonde.fr

economist.com

theglobeandmail.com

cnbc.com

nytimes.com

uk.reuters.com

quote.yahoo.co.jp

Global ex USA Reach



58%

43%

36%

30%

26%

16%

11%

11%

10%

8%

8%

8%

7%

7%

7%

Financial Times

The Economist

Bloomberg Markets

WSJ (WW)


The Times

BusinessWeek

Les Echos

IPE: Investment & Pensions Europe

L’Agefi (French)

The Daily Telegraph


Le Monde

Evening Standard

Financial News

29%

25%

11%

10%

7%

6%

5%

5%

4%

4%

4%

4%

4%

4%

4%

ft.com

bloomberg.com

WSJ.com (WW)

guardian.co.uk

timesonline.co.uk

lemonde.fr

reuters.com

uk.reuters.com

profpens.com

uk.finance.yahoo.com

cnbc.com

lefigaro.fr

lesechos.fr

latribune.fr

agefi.fr


The FTN’s dominance in Europe is evident. The FT reaches 35% more professional investors than the nearest competitor, the Economist…

FT.com is the website of choice for the majority of professional investors in Europe

European Reach


42%

40%

34%

33%

22%

18%

14%

12%

11%

10%

10%

10%

10%

9%

8%

7%

7%

7%

6%

6%

Financial Times

Bloomberg Markets

The Economist

WSJ (WW)


Les Echos

L’Agefi (French)

Le Monde


La Tribune

L’Agefi Actifs

L’Agefi hebdo

BusinessWeek

Enjeux-Les Echos

Frankfurter Allgemeine Zeitung

Financial Times Deutschland

Neue Zürcher Zeitung

Handelsblatt

Le Figaro


30%

19%

13%

10%

9%

6%

6%

6%

6%

6%

5%

5%

4%

4%

3%

bloomberg.com

ft.com

WSJ.com (WW)

lemonde.fr

reuters.com

lefigaro.fr

lesechos.fr

agefi.fr

latribune.fr

fr.finance.yahoo.com

Industri di.se

spiegel.de

cnbc.com

fuw.ch

Nyheter dn.se


The FT reaches more professional investors than any other title in Continental Europe too.The FT reaches 27% more professional investors than the nearest daily competitor The WSJ Europe.

FT.com is the press title’s website of choice for the majority of professional investors in Continental Europe

Continental Europe Readership


79%

57%

38%

31%

31%

26%

18%

17%

15%

13%

13%

11%

11%

10%

10%

9%

9%

8%

7%

7%

Financial Times

The Economist

The Times

Bloomberg Markets


WSJ (WW)

The Daily Telegraph

Evening Standard

Investment Week

BusinessWeek

The Guardian

Investors Chronicle

Professional Pensions


Financial News

The Independent

Time

Citywire Funds Insider

Pensions Management


42%

25%

18%

16%

11%

10%

10%

9%

8%

8%

5%

5%

5%

4%

3%

ft.com

guardian.co.uk

bloomberg.com

timesonline.co.uk

uk.reuters.com

professionalpensions.com

uk.finance.yahoo.com

WSJ.com (WW)

thisislondon.co.uk/standard

independent.co.uk

breakingviews.com

iii.co.uk

telegraph.co.uk

cnbc.com

morningstar.co.uk


The FT reach is even more pronounced in the UK where the FT reach is greater than the combined reach of all the UK quality dailies namely, The Times, The Daily Telegraph, The Guardian and The Independent

FT.com is the most visited website by the professional investment community in the UK, reaching 68% more professional investors than the nearest website guardian.co.uk

UK Reach

Source: PIC 2009/10 [Universe 5,527 – Sample 574, includes ROI]

37%

31%

30%

23%

20%

17%

16%

14%

10%

9%

8%

8%

8%

8%

7%

7%

7%

6%

6%

6%

WSJ (WW)

The Economist

Bloomberg Markets

Financial Times


Asiamoney

The Nikkei

The Australian Financial Review


Shukan Toyo Keizai

The Straits Times

Fortune

Time


Forbes Asia

The Nikkei Sangyo Shimbun

The Asset

The Asahi Shimbun

The Business Times

The Australian

25%

19%

18%

13%

9%

9%

7%

6%

5%

5%

4%

4%

4%

4%

4%

bloomberg.com

ft.com

WSJ.com (WW)

yahoo.co.jp

yomiuri.co.jp

nikkei.co.jp

reuters.com

sg.finance.yahoo.com

Sydney Morning Heraldsmh.com.au

economist.com

morningstar.co.jp

theaustralian.news.com.au

asahi.com

theage.com.au

The Australian FinancialReview afr.com


…The FT has also maintained its position as the number 4th most read title in the Asia/Pacific region, reaching 1 in 4 of all professional investors in this region ahead of many regional titles

…and 1 in 5 visit FT.com.FT.com is the second most visited website in the Asia/Pacific region

Asia/ Pacific Readership


82%

53%

47%

43%

42%

40%

39%

36%

33%

33%

30%

23%

23%

17%

17%

14%

5%

4%

4%

WSJ (WW)

Barron’s

BusinessWeek

The New York Times


Forbes

The Economist

Fortune


Bloomberg Markets



Financial Times

USA Today

Time

Newsweek

Euromoney

The Deal

Global Investor

49%

48%

32%

26%

26%

18%

14%

12%

10%

8%

8%

8%

6%

5%

5%

finance.yahoo.com

WSJ.com (WW)

bloomberg.com

nytimes.com

cnbc.com

google.com/finance

online.barrons.com

seekingalpha.com

ft.com

morningstar.com

money.cnn.com

reuters.com

marketwatch.com

businessweek.com

economist.com


The FT has maintained its position in the USA, reaching 1 in 4 professional investors in this region…

1 in 10 professional investors in the USA visit FT.com

USA Reach


0

5

10

15

20

25

30

35

40

WSJ (WW) Economist FT BusWeek Forbes Fortune Time Newsweek

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6Total assets managed Average assets managed

Total assets mngd [US $trillions]

Avg. assets mngd [US $billions]

Asset Funds managed: Comparison between total and average - GLOBAL


FT readers manage total Asset Funds worth US$18.9 trillion - 38% of total Asset Funds managed by the PIC audience.

FT readers manage, on average, US$1.3 billion – 9% higher than the average

Study average

The Law of the vital few

Pareto principle, also known as “The law of the vital few”(Pareto’s 80/20 rule states that consumption (or wealth, power etc) is concentrated in a small number of individuals. It usually holds that 20% of people consume 80% of a product)

Although the PIC community, as a whole, represents a very powerful group of Professional Investors, only a small portion of this audience operates within large enough firms that would allow them to personally manage the biggest Asset Funds…

8%* (3,366) out of the total PIC audience (41,386) control 25% [US $12trillion] of total Asset Funds

On average, they manage Asset Funds worth US $3billion. This is almost 3 times as large as the average Asset Funds managed by the average PIC respondent

The Vital Few

*This 8% vital few are those who personally managed US $1billion or more AND operate in those firms with US $10billion or more under management

44%

42%

38%

37%

27%

17%

17%

17%

13%

13%

10%

9%

8%

7%

7%

7%

7%

6%

6%

5%

Financial Times

WSJ (WW)

The Economist

Bloomberg Markets



The Wall Street Journal

BusinessWeek

Fortune

Forbes

Barron’s

Time

Les Echos

IPE

The New York Times

The Times

L’Agefi (French)

Financial News

Newsweek

Euromoney

29%

25%

20%

12%

8%

8%

6%

5%

5%

5%

4%

4%

4%

4%

4%

4%

4%

3%

3%

3%

3%

3%

bloomberg.com

wsj.com (WW)

ft.com

wsj.com

europe.wsj.com

cnbc.com

finance.yahoo.com

guardian.co.uk

reuters.com

Japan quote.yahoo.co.jp

lemonde.fr

asia.wsj.com

marketwatch.com

Industri di.se

nikkei.co.jp

timesonline.co.uk

agefi.fr

yomiuri.co.jp

latribune.fr

fr.finance.yahoo.com

nytimes.com

economist.com Source: PIC 2009/10 [Universe 3,366 – Sample 527]

Which media owner is the most effective at reaching “The Vital Few”?

Summary

Summary

The FT is regarded as the most credible publication by the most influential professional investors on the survey

The FT continues to be one of best read publications as well as websites among this audience. Additionally, the FT is the most read publication by institutional investors in the UK and Europe. Not to be outdone, FT.com is also the most read/visited website in the UK and Europe

Out of the 10 top titles on this study the FT is the only publication to show an increase in reach

The FT has improved its reach of this important market worldwide since 2007/08, and now has the 3rd highest coverage of all titles measured on the survey and the 3rd highest coverage of all publications’ websites.

Appendix

Same Methodology, different study’s sample supplier

There has been a change in study’s sample supplier. The new supplier, Ipreo, replaced the previous (2007/08) study’s sample supplier Thomson Financial. Ipreo, it was found, offers a richer and more robust dataset overall.

PIC 2009/10 shows a drop of 28% in total population (from 57,285 in 2007/08 to 41,386 in 2009/10). While it is possible that this difference might be caused by using two different study’s sample suppliers, this appears to be in line with expectations given current marketplace realities.

66%

51%

43%

42%

34%

33%

32%

32%

25%

23%

16%

14%

12%

wsj.com (US, Europe, Asia) or WSJ (US, Europe, Asia)

bloomberg.com or Bloomberg Markets

ft.com or Financial Times

economist.com or The Economist

iimagazine.com or Institutional Investor

nytimes.com or The NYTs

online.barrons.com or Barron’s

businessweek.com or BusinessWeek

forbes.com or Forbes

fortune.com or Fortune

pionline.com or Pensions & Investments

investors.com or Investor’s Business Daily

time.com or Time

Global reach of top “News-organisations” (Print and Online)

58%

43%

36%

30%

26%

16%

11%

11%

10%

7%

6%

6%

6%

6%

6%

5%

5%

5%

5%

5%

5%

5%

Financial Times

The Economist

Bloomberg Markets

The Wall Street Journal Europe


The Times

BusinessWeek

Les Echos


Financial News

Investment Week

La Tribune

L’Agefi Actifs

L’Agefi hebdo

FT Mandate

Time

Enjeux-Les Echos

The Guardian

Forbes

Euromoney

Newsweek

International Herald Tribune

European Readership

42%

40%

34%

33%

22%

18%

14%

12%

11%

10%

10%

10%

10%

9%

8%

7%

7%

7%

6%

6%

Financial Times

Bloomberg Markets

The Economist



Les Echos

L’Agefi (French)

Le Monde


La Tribune

L’Agefi Actifs

L’Agefi hebdo

BusinessWeek

Enjeux-Les Echos

Frankfurter Allgemeine Zeitung

Financial Times Deutschland

Neue Zürcher Zeitung

Handelsblatt

Le Figaro


..and The FT reaches more professional investors than any other title in Continental Europe too.The FT reaches 27% more professional investors than the nearest daily competitor The WSJ Europe.

Continental Europe Readership

79%

57%

38%

31%

31%

26%

18%

17%

15%

13%

13%

11%

11%

10%

10%

9%

9%

8%

7%

7%

Financial Times

The Economist

The Times

Bloomberg Markets



The Daily Telegraph

Evening Standard

Investment Week

BusinessWeek

The Guardian

Investors Chronicle

Professional Pensions


Financial News

The Independent

Time

Citywire Funds Insider

Pensions Management


The FT reach is even more pronounced in the UK where the FT reach is greater than the combined reach of all the UK quality dailies namely, The Times, The Daily Telegraph, The Guardian and The Independent

UK Readership

82%

53%

47%

43%

42%

40%

39%

36%

33%

33%

30%

23%

23%

17%

17%

14%

5%

4%

4%

The Wall Street Journal

Barron’s

BusinessWeek

The New York Times


Forbes

The Economist

Fortune


Bloomberg Markets



Financial Times

USA Today

Time

Newsweek

Euromoney

The Deal

Global Investor

The FT has maintained its position in the USA, reaching 1 in 4 professional investors in this region…

USA Readership

37%

31%

30%

23%

20%

17%

16%

14%

10%

9%

8%

8%

8%

8%

7%

7%

7%

6%

6%

6%

The Wall Street Journal Asia

The Economist

Bloomberg Markets

Financial Times


Asiamoney (10x)

The Nikkei

The Australian Financial Review


Shukan Toyo Keizai

The Straits Times

Fortune

Time


Forbes Asia

The Nikkei Sangyo Shimbun

The Asset

The Asahi Shimbun

The Business Times

The Australian

…The FT has also maintained its position as the number 4th most read title in the Asia/Pacific region, reaching 1 in 4 of all professional investors in this region ahead of many regional titles

Asia/ Pacific Readership

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