JPMORGAN ASSETMANAGEMENT – SAVINGSFOR CHILDREN PLAN CAMPAIGN

PRESENTED BY TIM NOBLE

BACKGROUNDAs a well established manager of Investment Trusts, JPMorgan AssetManagement (JPM) offers 19 different investment trust choices to meet a broadrange of investment needs, from core trusts ideal for starting a portfolio tospecialist funds investing overseas and in smaller companies.

Sales of Investment Trusts had started to stagnate, with sales to existinginvestors slowing and limited new investment inflows.

To counteract this trend a limited amount of qualitative and quantitive researchwas undertaken – to gain insights about existing investors and their motivations.A key insight was that many investors were saving for a child’s future –both parents and grandparents.

TARGET MARKET

In an attempt to better define the broad target audience of “anyone connected with a child”, two main target profiles were identified

NEW WAVE PARENTS ADVICE SEEKINGGRANDPARENTS

ANYONE CONNECTED WITH A CHILD

OBJECTIVES• To increase average investment levels by existing JPMorgan

Investment Trust investors – by 10%

• To recruit new investors to the JPMorgan Investment Trust franchise –to attract new assets under management of £25,000,000.

STRATEGY• To present the JPMorgan Investment Trust range (Share Plan)

as a ‘Saving for Children Plan’ to potential investors ‘connected with a child’

• To send direct mail packs, statement stuffers and outbound emailsto existing investors

• To create a direct marketing campaign designed to acquire ‘look alike’prospective investors.

Client segment

Definition No. of clients

% of clients

AUM £m

Average holding

£

Cumulative AUM %

Gold More than £30,000 in JPMF IT wrappers 2,523 5 234 92,747 57%

Silver More than £30,000 in projected liquid assets or more than £30,000 in family income

21,898 46 180 8,220

Bronze

Less than £30,000 in projected liquid assets or less than £30,000 in family income and more than £3000 in JPMF IT wrappers

8,837

19

49

5,545

Red

Less than £30,000 in projected liquid assets or less than £30,000 in family income and less than £3000 in JPMF IT wrappers

7,710

16 9 1,167

Total 472

Cross holders

Clients holding both JPMF investment trusts and OEICs 6,337 13 257 40,555

88%

40,968

98%

100%

DIRECT WRAPPER CLIENT SEGMENTATION

TARGETING – THIRD PARTYDATA AND MEDIA SELECTIONTarget Criteria

Three key criteria were applied to determine the suitability and likelihoodof a prospect investing:

1. Are they affluent enough to invest?

2. Do they understand what an Investment Trust is?

3. Do they have (or are they connected to) children?

AFFLUENCE INDICATORSA number of variables that are easily accessible in the public domain wereused to help indicate how affluent an individual may be:

• Investment Portfolio size – the value of current investments in stocks and shares

• Property Value – the value of the properties they own

• Household income

• Age or life stage.

FINANCIAL SOPHISTICATIONSimilarly a number of variables that are easily accessible in the public domain,were used to help determine whether a prospect understands the benefits ofinvesting in an Investment Trust :

• Investment Portfolio composition – the types of investments they hold

• The literature requested from associations – trade body, industry sites

• The publications they subscribe to – both online and offline

• Age or life stage.

HOUSEHOLD COMPOSITIONAppropriate variables include:

• Household composition – via census information, lifestyle and modeled data

• Membership or subscriptions to relevant maternity-related stores and bodies

• Age or life stage.

TARGET AUDIENCE PROFILING• New Wave Parents and Advice Seeking Grandparents

– Proximity/relationship with child

– Willingness to invest.

WHO ARE THEY?• To better understand and target our audiences we created two TGI audiences

based on JPMorgan’s client profiling

• Audiences primarily defined by their attitudes

• In this instance they are also defined by their life stage i.e. Parents and Grandparents.

PRIMARY AUDIENCES• New Wave Parents

– Affluence (+£40,000 gross HH income)

– Age/Parents

– Plan for future

– Financially conscious

– Value Family

– Seek Security.

• Advice Seeking Grandparents

– Affluence

– Age/Grandchildren

– Value Knowledge

– Value (extended) Family

– Financially Conscious

– Seek Security.

} SimilarAudiences butat different life stages

CONSUMER INSIGHTNEW WAVE PARENTS• Value function over form – look for intrinsic value in their

decisions/purchases

• Rational/considered decisions based on evaluation above emotion (act on instinct rather than rational -20%)

• Not necessarily inclined to save/invest – function of life stage/financialsituation rather than desire?

New Wave Parents may invest if they can be made to believe in theintrinsic value of an investment – need sufficient reason/motivation

Rational and Emotional Investment – proposition must be valuable

CONSUMER INSIGHT ADVICESEEKING GRANDPARENTS• Financially conservative

• Traditional values– The family unit– Saving

• Taking life easier– Need to be motivated to act but are responsive to advertising

‘Advertising helps me choose what I buy’ (129% more likely/definitely agree)

• Consider decisions– Value judgements when making choices – need the facts (+153%).

Willing to invest ifreason is compelling

Value family, value saving – need to make process as transparent and simple as possible

STRATEGIC POSITIONINGHow do these learnings translate into a strategic position?

New Wave Parents

Rational, Considered,

Willing to invest if

motivated/inspired but not

necessarily looking for

IT fund

Appeal to rational instinct in emotional environment

Advice Seeking Grandparents

Start investing now so that you can give the childrenin your life a helping hand when they grow up

EMOTIONAL FULFILMENT PROCESS• Target both audiences in specific media environments that evoke emotion.

Need to Evoke Emotion

Specific channels which can evoke emotions

Magazines Supplements Radio Internet}

THE CREATIVE CAMPAIGN

Press advertisements

Aimed at New Wave Parents

– Prima Baby

– Practical Parenting

– Junior

– Living

– 25 Beautiful Homes

– Easy Living

– House and Garden

Keyword Sponsored Advertising

Aimed at New Wave Parents– Internet remains a key source of

information for New Wave Parents (63% more likely top 2 quintiles)

– Partner with Google using pay per clickkeyword sponsored advertising

Direct Marketing Pack

Aimed at existing JPMorganInvestment Trust Investors andProspects with a similar profile

Press inserts

Aimed at Advice SeekingGrandparents

– Readers Digest

– Woman & Home

Script

Client name: JPMorgan

Job number: TBC

Client project: Radio ad – FAIRYTALE PRINCESS

Draft: Final

SFX Script

Magical, medieval storytelling type music

in background

MVO1: Steven Fry sound-alike narrator. Once upon a time there was beautiful princess…well at least that’s what

her grandfather thought…and she lived in a wonderful castle, which was

actually a rather nice detached house in Surrey.

SFX: Sound of horses hooves, as if in

fairytale

MVO 1: He continues

Every Sunday she took riding lessons at her local stables and although

she was only four, she had already developed a taste for the finer things

in life…like beautiful jewels, sumptuous furnishings, fast cars, nice

holidays…not to mention the occasional cream bun,

SFX: Sound of young girl munching buns

MVO 1: Narrator continues

Professional voice of JPMorgan:

Fortunately her wise old grandfather had invested in a children’s savings

plan with JPMorgan, So when she grew up he could give her a helping

hand.

We all want the best for the children in our lives but it’s not always easy

to know how to give them the best start. With some careful planning now

and by investing in a Share Plan with JPMorgan the chances are you’ll be

able to really help when they come to buy their first home, get married, go

to university, or buy their first car.

To find out more about saving for your little Prince or Princess call us now

for further information and a free investment guide on 0800 40 30 30, or

visit www.jpmorgan.com/savingforchildren

Please note that telephone lines are recorded and may be monitored for

security and training purposes. JPMorgan Asset Management Marketing

Limited is authorised and regulated by the Financial Services Authority.

The value of investments may fall as well as rise and an investor may

not get back the full amount invested.

Radio Advertisement

Aimed at Advice SeekingGrandparents

– Saga Radio

Fulfilment Pack

Aimed at all prospectsrequesting further information