reports

Social media provides unprecedented opportunities for people and organizations to communicate online, build trust and enhance loyalty. As social networking has entered the mainstream, only 48% of asset management firms have a social media presence. Firms not engaged with social media are missing important opportunities to connect with customers, deliver improved customer service and enhance their reputation of expertise.

Most Firms Are Slow to Adopt

For this study, kasina surveyed executives at 48 leading asset management firms and conducted extensive secondary research. We learned that:

• 84% of asset management firms believe social media is here to stay and will have a lasting impact on financial services
• 48% of firms engage in some form of social media today
• 73% of firms believe compliance hinders their ability to participate in social media
• 66% of firms have no current or planned budget to engage in social media
• 78% of US social media users interact with companies or brands on social media sites. Three out of five do so at least weekly.
• 74% of advisors use social media.

Leading firms such as American Century, Fidelity Investments, PIMCO, Putnam Investments, TIAA-CREF and Vanguard have seized the opportunity to broaden dialogue and build communities with customers.

They:

• Built branded pages on Facebook;
• Helped wholesalers develop professional, branded profiles on LinkedIn;
• Introduced branded channels on YouTube; and
• Launched multiple Twitter feeds with hundreds, if not thousands, of followers.

By unfettering their valuable content from their Web sites – be it commentary, video, tools -- these firms enable advisors and investors to communicate with each other and the firms. In addition to viewing and using content, advisors and investors are recommending, forwarding and even reposting links to the content in social communities.

In this paper, we will review:

• Why asset management firms should participate in social media;
• How firms are using social media and sites to consider;
• Development of a social media strategy;
• Best practices for compliance and corporate policies; and
• Implications and trends for asset management firms.