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
Source: 2010 FT Fund Image Study
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
Source: 2010 FT Fund Image Study
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
Source: 2010 FT Fund Image Study
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
Source: 2010 FT Fund Image Study
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.
Source: 2010 FT Fund Image Study
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.
Source: 2010 FT Fund Image Study
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.
Source: 2010 FT Fund Image Study
Contact Daniel for additional findings
Brand Rankings Against Individual Attributes
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.
Source: 2010 FT Fund Image Study
Contact Daniel for additional findings
Brand Rankings Against Individual Attributes
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.
Source: 2010 FT Fund Image Study
Contact Daniel for additional findings
Brand Rankings Against Individual Attributes
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.
Source: 2010 FT Fund Image Study
Contact Daniel for additional findings
Brand Rankings Against Individual Attributes
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.
Source: 2010 FT Fund Image Study
Contact Daniel for additional findings
Brand Rankings Against Individual Attributes
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.
Source: 2010 FT Fund Image Study
Contact Daniel for additional findings
Brand Rankings Against Individual Attributes
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?
Source: 2010 FT Fund Image Study
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
Q. Over the next 6 months, how do you expect each of your Product/ Asset Allocations to shift?
Source: 2010 FT Fund Image Study
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
Increase Stay the Same Decrease
Q. Over the next 6 months, how do you expect each of your Product/ Asset Allocations to shift?
Source: 2010 FT Fund Image Study
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
Q. Over the next 6 months, how do you expect each of your Product/ Asset Allocations to shift?
Source: 2010 FT Fund Image Study
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
Increase Stay the Same Decrease
Q. Over the next 6 months, how do you expect each of your Product/ Asset Allocations to shift?
Source: 2010 FT Fund Image Study
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
Q. Over the next 6 months, how do you expect each of your Product/ Asset Allocations to shift?
Source: 2010 FT Fund Image Study
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?
Source: 2010 FT Fund Image Study
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
Source: 2010 FT Fund Image Study
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?
Source: 2010 FT Fund Image Study
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.
Source: 2010 FT Fund Image Study
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.
Source: 2010 FT Fund Image Study
Contact Daniel for these findings
35
Brand Rankings - unaided
- Best Overall
- Lost/Losing Confidence
-Rising Stars
36
Best Overall Reputation - unaided
Source: 2010 FT Fund Image Study
Q. Please list up to 3 Asset Management firms you consider to have the Best Overall Reputation
Contact Daniel for these findings
37
Lost/Losing Confidence in - unaided
Source: 2010 FT Fund Image Study
Q. Please list up to 3 Asset Management firms you are have Lost or are Losing Confidence In
Contact Daniel for these findings
38
Source: 2010 FT Fund Image Study
Rising Stars - unaided
Q. Please list up to 3 Asset Management firms you consider to be Rising Stars
Contact Daniel for these findings
THANK YOU
For more information please contact
Daniel RothmanDirector of Research, [email protected]
www.ft.com