how social media influences institutional investors
DESCRIPTION
Learn from our distinguished panel of speakers from J.P. Morgan Asset Management, Greenwich Associates, and LinkedIn, as we discuss: - New research into how social media is being leveraged during the institutional investing process. - Implications for institutional investing and how asset managers are adapting to these trends. - Best practices and key opportunities to differentiate your brand and influence institutional investors on social media.TRANSCRIPT
Webcast: How Social Media Influences Institutional Investors
Emily Friedman
Research Consultant
Ken Poliziani
Managing Director, Head of Institutional Marketing
J.P. Morgan Asset Management
Dan Connell
Managing Director
Greenwich Associates
Jennifer GrazelHead of Category Development Financial Services
3Base: Institutional investors and Institutional Asset Managers on LinkedIn, qualified by age and DM status.
To what extent are digital resources gaining traction as sources of financial information?
How is social media being leveraged for insights during the institutional investing process?
What has social media influenced so far, and where are key opportunities for influence moving forward?
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3
2
Questions to Answer
4
Methodology
Base: Institutional investors and Institutional Asset Managers on LinkedIn, qualified by age and DM status. * Institutional Investors composition mix: 77 Foundation/Endowment sector, 73 Insurance
Survey
Online survey fielded through LinkedIn from May 28 – June 6, 2014
Sample
Sample of 269 Institutional Asset
Managers and 292 Institutional Investors (U.S.). *see footnotes
Who
Decision-maker or influencer on
investment (II) or client portfolio mix (IAM)
Digital
Use 1+ digital source to learn about financial
topics relevant to investing role
Digital resources are gaining traction on both sides of institutional investing
6
Nearly all Institutional Investors (IIs) and Asset Managers (IAMs) on LI use digital resources for investing purposes
99% 90%
of Institutional Asset Managers on LinkedIn
of Institutional Investors on LinkedIn
Used at least one digital research relevant to their role in the past year…
Base: Institutional investors and Institutional Asset Managers on LinkedIn, qualified by age and DM status.
7Base: Institutional investors and Institutional Asset Managers on LinkedIn, qualified by age and DM status.
About half of IAMs and IIs have used a social media source for information relevant to their investing role in the past year
LinkedIn Google+ Twitter Facebook YouTube
41%
14%
24%
9%12%
31%
20%
9%
14%11%
Used at least 1 social source
55% of IAMs, 44% of IIs
Social Source │ IAMs Ils
8
About two-thirds of IAMs and IIs who have used LinkedIn for their role are doing so weekly or more
Base: Institutional Asset Managers and Investors on LinkedIn who have used LinkedIn to inform themselves about financial topics relevant to their role
Among those who have used LI as a source of financial info, % who use weekly or more:
Institutional Asset Managers Institutional Investors
19%
28%
69%65%
DAILY WEEKLY+ DAILY WEEKLY+
In particular, social media is becoming a key source of insights for investing
10
IAMs and IIs who use social sources for financial info have increased this usage over the past year
YouTube
Financially-oriented niche publications/sites
Financial institution/company’s websites or blogs
Google+
Financially-oriented blogs/discussion forums
Financially-oriented news sites
32%
26%
26%
24%
25%
34%
31%
54%
53%
20%
13%
8%
5%
5%
10%
3%
10%
3%
Social Source │ Increase Same Decrease
* Financially-oriented / Financial institution or companyBase: IAMs and IIs on LinkedIn who have used each source over the past year to inform themselves about financial topics
11
IAMs and IIs who use social sources for financial info also plan to increase this usage over the next year
Base: IAMs and IIs on LinkedIn who have used each source over the past year to inform themselves about financial topics
Financially-oriented blogs/discussion forums
Financial institution/company’s websites or blogs
YouTube
Google+
Financially-oriented niche publications/sites
Financially-oriented news sites
25%
24%
24%
32%
30%
30%
28%
47%
45%
14%
5%
4%
12%
5%
5%
1%
9%
0%
Social Source │ Increase Same Decrease
12
At least half of all IAMs and IIs on LinkedIn expect to use the platform to inform their investing by next year
Base: Institutional investors and Institutional Asset Managers on LinkedIn who use at least one digital source
Next year 50%Past year 38%
98% plan to maintain or increase
At least 20% of non-users plan to start using
13
Social media is already playing an influential role in investment decisions, but there is more to come
14
Beyond the mainstays of news and researching companies, IAMs and IIs are tapping into social for relevant insights
Base: Institutional investors and Institutional Asset Managers on LinkedIn who use social media for their role
Institutional Asset Managers
79% Read timely news or market/industry updates
69% Research companies, executives or industries
57% Seek opinions or commentary on markets/events
52% Join groups and observe discussions
49% See how competitors/peers are using social
Institutional Investors
71% Read timely news or market/industry updates
59% Seek opinions or commentary on markets/events
59% Seek educational content to inform investing
56% Learn about investment products/services
55% Research financial companies, executives or industries
Top purposes cited for using social media (among those who have used in past year):
15Base: IAMs on LinkedIn who currently turn to social media for each of the following purposes
Top 5 purposes IAMs use social:
For each of the top purposes for using social, most IAMs are using LinkedIn, followed by Twitter
1 2 3 4 5
79%
Read timely news/ market/industry updates
59%
20%
47%
69%
Research companies, executives/industries
80%
13%
26%
57%
Seek opinions/commentary on markets/events
69%
13%
50%
52%
Join groups and observe discussions
87%
23%
28%
49%
See how competitors/peers are using social
81%
24%
43%
16
For each of the top purposes for using social, more than twice as many investors use LinkedIn vs. FB or Twitter
Base: IIs on LinkedIn who currently turn to social media for each of the following purposes
1 2 3 4 5
71%
Read timely news/ market/industry updates
55%
23%
25%
59%
Seek opinions/commentary on markets/events
64%
22%
24%
59%
Seek educational content to inform investing
61%
13%
18%
56%
Learn about investment products/services
56%
13%
19%
55%
Research financial companies,
executives/industries
66%
19%
18%
Top 5 purposes IIs use social:
17Base: Institutional investors and Institutional Asset Managers on LinkedIn who use social media for their role
IAMs have a significant opportunity to influence & provide value to investors through relevant content
Though IIs who use social for their role are primarily seeking specific types of info/opinions, most IAMs who leverage social for their role are not yet providing this
Institutional Asset Mgrs.% posting each on social
Institutional Investors % seeking each on social
21% Market / industry updates 71%
19% Opinions / commentary on market events 59%
18% Investment products / services 56%
20% Service or support 30%
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Most IAMs/IIs who use social media to inform their investing have learned something that has influenced decision-making
Base: IAMs and IIs on LinkedIn who have used social media to inform themselves about financial topics relevant to their investing role
IAMs Ils
Prompted me to do further research on an industry issue or topic
79% 69%
Influenced my perspective on an industry issue or topic
68% 60%
Shared this information with decision makers at my company
44% 51%
Led me to consult that social media source more regularly
52% 41%
Influenced an investment recommendation or decision
36% 48%
Influenced a decision to work with a particular company or client
30% 44%
19Base: IAMs and IIs on LinkedIn who have used social media to inform themselves about financial topics relevant to their investing role
This includes nearly half of IIs
48%Nearly half of IIs who use social media for their role say they have learned something that has influenced an investment recommendation or decision
Emily Friedman
Research Consultant
Ken Poliziani
Managing Director, Head of Institutional Marketing
J.P. Morgan Asset Management
Dan Connell
Managing Director
Greenwich Associates
Jennifer GrazelHead of Category Development Financial Services
Panel Discussion
Thank You!
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