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High Net Worth Investors Pt. 1 Social Media’s Influence Among Affluent Investors

Financial Services Webinar Series

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Today’s speakers

Jake Raroque Research Consultant

LinkedIn

Marie Rice Practice Director Custom Research Cogent Research

Chris Savio Project Director

Cogent Research

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Agenda – High Net Worth Investors, Part 1

§  The Research Approach

§  Today’s High Net Worth Investors

§  Social Media and the High Net Worth Investor

§  Social Media and the Financial Services Industry

§  Recap

§  Q & A

§  Next event – June 19

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Methodology

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Partnered  with  Cogent  Research  Strategic  consultancy  specializing  in  the  investor  popula4on    

Online  survey  among  608  respondents  in  the  U.S.  and  Canada  

At  least  $100K  investable  assets*  

*  Excludes  primary  residence  and  vaca4on  property  

Methodology

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Today’s High Net Worth Investors

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High Net Worth Investor profiles Mass Affluent ($100k < $1M)

Ultra Affluent ($5M+)

Affluent ($1M < $5M)

0 0

Male

Female 64%

36%

77%

23% 48% 52%

0 0

Advised

Unadvised 82%

18%

72%

28% 54% 46%

0 0 0 Gen Y/X (<47 yrs) Boomers (47 – 64 yrs) Retirees (65 yrs+)

5%

52% 42%

2%

59% 39%

16%

59%

24%

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Ultra Affluent are more likely to research their investments...

21% 31% 31%

51% 46%

35%

28% 23% 34%

Ultra Affluent ($5M+)

Affluent ($1M < $5M)

Mass Affluent ($100k < $1M)

Does not rely on Advisor

Use Advisor & do own research

Completely rely on Advisor

Which of the following statements best describes you when it comes to your investing style?

Investing Style

Base: HNW Investors

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58% 72%

89%

19%

22% 8% 23%

6% 4%

Ultra Affluent ($5M+)

Affluent ($1M < $5M)

Mass Affluent ($100k < $1M)

Heavy Active traders (10+ trades/month)

Light Active traders (3-9 trades/month)

Non-Active traders (<3 trades/month)

... and Ultra Affluent are considerably more likely to be active in their investing

In a typical month, how many times do you buy or sell stocks, mutual funds, bonds, ETFs or options using a self-service online trading system ?

Investing Philosophy

Base: HNW Investors

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With increased affluence comes greater investment product diversity

Which of the following investment accounts do you currently have? Which of the following investment products do you currently own?

Average Investment Products Owned: 5.2 8.0 9.1

Investment Accounts:

401(k), 403(b), 457, or other defined contribution accounts

71% 52% 41%

IRA 60% 72% 80%

Brokerage account 55% 95% 95%

Investment Products:

Corporate stock 47% 80% 93%

Mutual funds 74% 83% 76%

ETFs 7% 31% 46%

Product Ownership

Mass Affluent Affluent Ultra Affluent

▲/▼ = Significant difference Base: HNW Investors

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Social Media and the High Net Worth Investor

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7% 28%

65%

90%

8% 2%

91%

8% 1%

17%

32% 52%

35%

37%

28%

16%

62%

22%

Who uses social media? Social Media

Users Non-Social Media

Users

0 0 0 Mass Affluent ($100k < $1M)

Affluent ($1M < $5M)

Ultra Affluent ($5M+)

0 0 0 Soloists

Validators

Delegators

0 0 0 Gen Y/X (<47 yrs)

Boomers (47 – 64 yrs)

Retirees (65 yrs+)

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% OF ASSETS MANAGED WITHOUT AN ADVISOR

Social Media User

26%

57%

Non-Social Media User

+120%

54% are advised

82% are advised

Social media users are engaged with their finances

What percent of your total investable assets are managed in each of the following ways? Base: Advised HNW Investors

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Investors are on different platforms... but for different reasons

71% 75%

24%

% of High Net Worth Investors using...

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How long ago did you start using each of the following social media sites/services? For what purposes do you use the following social media sites/services?

Base: HNW Investors

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Social Media and the Financial Services Industry

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Social networks, and LinkedIn specifically, are invaluable finance resources

Investors with $100K+ assets who use social media to research and make financial decisions 5 Million

SOCIAL PLATFORMS USED FOR RESEARCHING AND MAKING FINANCIAL DECISIONS

Topic-specific discussion boards Other social platforms combined

73% 53%

29%

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What  external  resources  do  you  use  when  researching  and  making  financial  decisions?  Which  of  the  following  social  media  pla@orms  do  you  use  for  researching  and  making  financial  decisions?  

 

Base: HNW Investors using Social Platforms for Financial Research

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Post Purchase

43%

39%

26%

44%

17%

14%

Seek advice or information to help me make an investment decision

Gather preliminary information about investing, products, or companies

“Double-check” something my advisor suggested

Evaluate or re-think an investment decision I have already made

Share a negative experience

Share a positive experience

Social platforms are used to both research and review investments

Pre-Purchase

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At which of the following points do you turn to social media? Base: HNW Investors using Social Platforms for Financial Research

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31% 44%

24%

Social media adoption can have a favorable impact on brand perception

% that would perceive a financial company as “innovative,” “a leader,” or “cutting edge” if they offered social media tools

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To what extent do you agree or disagree with each of the following statements? Base: HNW Investors

Among those who DO NOT use social media for financial reasons

Among those who use social media for financial reasons

Overall

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52%

46%

45%

38%

Relevant and timely content and updates

Greater transparency of information

Real-time interaction/ conversation

Improved customer service

With a social media presence comes increased expectations for information and connection

Because of social media, I expect more:

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Because of social media, I expect from financial services companies:

Base: HNW Social Media Users

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Investors want both market and company information via social media

Information Expected on Social Media

73%

62%

59%

54%

38%

21%

Market and economic trends and commentary

New product information

Company background

Product performance updates

Best practices, Case Studies / Thought leadership pieces

Moderating a group discussion

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If a financial services company were to use social media, what types of information would you expect to receive from it?

Base: HNW Social Media Users

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Investors aren’t interacting with their advisors via social media, but a majority would value it

Of advised use social media

87%

Disconnect in Advisor Social Media Interaction

Currently interact with their advisor via

social media

4%

Would find value in doing so

52%

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Base: Advised HNW Investors Do you currently interact with your financial advisor via social media?

In which of the following would you find value in interacting with your financial advisor via social media?

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Investors would most value news and market updates from their advisors

Types of Desired Interaction

69%

44%

40%

19%

Staying informed about timely news updates and market trends

Receiving more frequent communication

Participating or listening to discussions regarding financial

topics

Engaging in interactive conversation via screen sharing/

webex session

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Base: HNW Investors Who Want Advisors to Use Social Media In which of the following would you find value in interacting with your financial advisor via social media?

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Recap

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Today’s High Net Worth Investors …

– In distinct segments, yet similarities

– Engaged in finances

– Are on a financial continuum

– Use social media as a financial resource

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Financial Services Industry …

– Vary strategies by social media platform

– Establish a presence and actively engage

– Educate, not sell, to build relationships

– Build your brand for the next generation

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Next event: High Net Worth Investors Pt. 2

June 19

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Thank you for attending part one of our Financial Services Webinar Series

Learn how marketers have successfully met their objectives:

http://marketing.linkedin.com/success-stories

Learn how you can reach this audience: MktgSolutions@linkedin.com

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