The Asset Manager’s Guide to Social Media

January, 2010

2

Methodology

Social Media

+ Surveyed 64 executives at 48 firms

AUM range from $12 billion – top firms

+ Web survey including quantitative and qualitative questions

+ Extensive secondary research of studies, news, trade journals

3

Social Media is Mainstream

Social Media

+ People and organizations use social media to post updates, share content, comment, recommend, disapprove, forward links

+ 60% of Fortune 1,000 companies with a Web site will connect to or host a social community to build customer relationships*

+ 77% of Inc. 500, America’s fastest-growing companies, use social media tools**

+ User demographics mirror general US population

+ 80% of social media users interact with companies, not just friends***

* Ginsburg, Monica. “Fortune 500 companies using social media to reach customers.” Chicago Business. January 04, 2010

** Barnes, Dr. Nora Ganim and Mattson, Eric. Social Media in the Inc. 500. Society for New Communications Research and Financial Insite Inc. 2008*** “Four-Out-Of-Five New Media Users Interact With Companies and Brands Online, Up 32% From 2008” 2009 Cone Consumer New Media Study. October 20, 2009

4

Asset Management Firms Are Slow to Adopt

Social Media

+ Only 48% of firms claim any social media presence + A handful has built more than a cursory presence+ Fewer than 20% intend to develop a presence in the next twelve months

20%

39%

24%20%

25%22%

14%18%

0%5%

10%15%20%25%30%35%40%45%

Facebook LinkedIn Twitter YouTube

% o

f res

pond

ents

Please rate your firm's involvement in the following social media sites

Currently have a presence Have evaluated & plan to participate w/in next 12 mos.

©2010kasina

5

Communicate With Your Customers Where They Are

Social Media

+ 74.5% of advisors use any of these social media sites at least occasionally

6

Manage Your Brand - Opting Out is not an Option

Social Media

+ United Breaks Guitars video 7 million views & 40,000 comments

+ “Debtor’s Revolt Begins Now” Bank of America video ~500,000 views & 7,700 comments

7

Enhance Your Reputation of Expertise

Social Media

+ Vanguard uses YouTube, Facebook, Blog to showcase leadership

8

Firms Are Gaining Experience with Several Key Sites

Social Media

9

73% of Firms Feel Compliance is a Barrier to Entry

Social Media

+ Chief concerns are content, comments and record-keeping

Agree, 73%

Disagree, 27%

Compliance or legal concerns significantly impede our ability to participate in social media

©2010

kasina

10

90% of Firms Plan to Engage in Social Media

Social Media

Social media will be integrated with our Web site strategy,

76%

We will participate in social media, but

this activity will reside largely away from our Web site,

14%

We will not be an active participant in social media, 10%

How will your firm participate in social media in the next 3-5 years?

©2010

kasina

11

Benefits of Engaging in Social Media Now

Social Media

+ Develop and enhance customer loyalty Integrate social media into Web site. Let users comment on content, see what is popular

among other users

+ Broaden access to content Distribute content to provide easy access to videos, slideshows on community Web sites.

+ Connect wholesalers with advisors in online social communities Form groups for discussion and exchange of best business practices

+ Provide enhanced service Tracking tweets and comments on products and services.

+ Research trends and needs among investors and advisors Use polls and surveys on community sites to gather and analyze data on customers Analyze and report on social community feedback

12

About kasinaOur firm has a singular mission: Innovate distribution in financial services

Social Media

For more information, please contact:

Andy Edwards Business Development Manager

e-mail: aedwards@kasina.comphone: 646 257 4454fax: 212 349 7413