Industry and Audience PerspectiveFoundational PrinciplesTarget Audience • Institutional Investors • Financial Advisors • Investors
Foundational Principles• The industry is heavily relationship driven. Although - The financial crisis dislodged substantial assets. It consumer trust in financial institutions is shaken, their is estimated that half of the assets that moved confidence and faith in their advisors remains high and is during that time relocated to perceived safe the linchpin of the industry’s success. havens, at least temporarily.• Investors have shown a willingness to sacrifice returns - Market volatility has become the new norm, with for decreased volatility in their portfolios, and are the European debt crisis, Middle East political unnerved by personnel turnover in their investment unrest, and natural disasters from tsunamis to relationships. droughts further impacting investment reallocation. - As Baby Boomers reach retirement age there is a scramble to capture rollover funds and allocate assets to more income-oriented investments.• The last few years have seen a tremendous amount of assets in motion
Audience – Institutional Investors• Institutional investors are incredibly savvy and • Pension plans represent 39% of total assets, and when sophisticated, and have the expertise, influence, and at other buyers such as endowments, foundations and times desire, to affect fund and corporate investment insurance companies are tallied, the institutional share rises strategies. to 46% - They are becoming more demanding of all aspects of - 401(k) and pension fund managers are conscious of fees, their relationships with asset managers, including research long-term returns, and risk-mitigation within their demands, more customized solutions, and probing into portfolios, as well as handling the contribution and investment processes and philosophies. distribution needs of their participants - Regulatory changes, such as Solvency II legislation, are - Plan rollovers (such as when an employee leaves a influencing objectives and making it more difficult to company) are critical junctures in which moneys can shift achieve their desired yields. into and out of funds. Brokers aggressively seek to• Fund managers’ jobs are getting harder as they react to the capture rollover dollars, while fund managers are making market changes in the last few years. strides to keep customers in the plan. - They want to remain diversified to limit exposure, but recognize that’s not enough to mitigate risk. - Many are realizing they need to be more nimble, and are seeking liquidity to handle market fluctuations, despite the drag on their portfolios.
Audience – Distributors & Investment Advisors• RIA’s and brokers break down domestically between those • Many of these advisors have limited direct interaction affiliated with the large wirehouses and independent with their clients, and have similarly limited knowledge of advisors the products they offer or advice they give.• Furthermore they exhibit different behaviors based on - For the majority of customers quarterly contact with the nature of their practices and their form of an advisor is the equivalent of the relationship. compensation, which impacts how products are positioned - The diversity of products available leads to to them: substantial competition for shelf space and “share of - Product sellers, who seek more transactional based mind” for distributors. To compensate firms need to business strengthen sales support, including better training on - Asset gatherers, who focus on increasing assets under products, backing up advisors on specific investment management solutions, and being an active partner with - Investment managers, who are more analytical in their distributors on new sales approaches. approach to portfolio management - Financial planners, who offer comprehensive financial planning processes and are often fee-based - Wealth managers, who serve the needs of high net worth individuals
Audience – Individual Investors• An aging affluent population is seeking stability • There is a growing diversification among high net - They are approaching retirement, living longer, and worth individuals. concerned about health care costs and succession - More than 1 in 4 globally are women, with the planning number reaching 37% in North America - A recent Fidelity Investments study estimated that a - Although 83% are over 45 globally, that number boomer couple retiring at 65 will need approximately varies by region. For example, in Asia-Pacific $200,000 to cover 20 years of out-of-pocket outside of Japan 41% are 45 or younger healthcare expenses. - Advisors lose an estimated 49% of assets under management during generational wealth transfer,• The wealthy: entrepreneurial in spirit, middle class affirming a need to address next-generation client at heart needs - 90% created their own wealth. 50% mostly rely on themselves when it comes to their finances - 81% describe themselves as middle class. 89% don’t want others to know they are wealthy
Audience – Individual Investors• 42% of online investors are seeking stability and reliability in their firm, and is considered most important across all age groups• Thirty-six percent of US online investors cited a long history of good performance as the mark of a qualified firm.• One in three online investors feel that a firm is well qualified for retirement planning if it does whats best for its customers, not just its own bottom line.
Marketing Messages Blackrock/iShares American Funds PIMCOPhilosophy Belief that our clients’ needs are of paramount Consistency is key. For 80 years, To be the leading investment importance and our sole business is managing American Funds has applied a consistent management firm in the world by our clients’ assets on their behalf. philosophy and consistent approach to consistently managing risk and delivering generate consistent long-term results. returns for our clients, across asset classes and risk exposuresKey Messages • iShares: We believe in a way of investing • We take a conservative long-term • Your global investment authority that is transparent, fair and effective. approach that’s consistent with the • We are agents of change, empowering our needs of most people saving for the customers with the confidence to achieve future. their goals. • Believe in the value of professional • Blackrock: Globally efficient and locally advice. effectiveAudience Focus Institutional clients and investment advisors Financial advisors and conservative Institutional clients and investment investors seeking to meet long-term goals advisorsStrengths & Global expansion and distribution. Leaders in A long-term, value-oriented approach. Thought leadership. Strong productDifferentiators ETFs. Multiple portfolio counselor system. performance and brand reputation.
Marketing Messages Vanguard Fidelity Investments PIMCOPhilosophy Vanguards mission is to help clients For 65 years, Fidelity has maintained a To be the leading investment reach their financial goals by being the commitment to continuous improvement management firm in the world by worlds highest-value provider of and peerless customer and client service. consistently managing risk and investment products and services. delivering returns for our clients, across asset classes and risk exposuresKey Messages • One goal: to help you reach your • Turn Here • Your global investment authority financial dreams. • Advantages for every investor • With Vanguard, you can stay focused on what matters to your long-term successAudience Focus Consumer/investor-focused Consumer/investor-focused Institutional clients and investment advisorsStrengths & Client-owned, no-load. High general Highly investor focused. Offer a Thought leadership. Strong productDifferentiators market awareness. Most index funds. complete suite of consumer retail performance and brand reputation. products. 24/7 advice and support.
Paid Media Landscape Blackrock / iShares American Funds PIMCOTotal marketing spend Too little to be reported Total Paid media: $3mfrom Annual report: $295m Digital: ?Heavily product focused(iShares ETFs)
Owned Media Landscape Blackrock / iShares American Funds PIMCOAffirm brand position as the world’s Create a fast deep dive into timely Personify and legitimize the brand bypreeminent investment management content, news and executive POVs. showcasing opinion and thoughtfirm. leadership.
Owned Media Landscape Vanguard Fidelity Investments PIMCOEntice investors to participate in the act Get investors started by presenting an Personify and legitimize the brand byof “Vanguarding.” array of tools, offers, services and showcasing opinion and thought CTAs. leadership.
Social Media Landscape Blackrock / iShares American Funds PIMCOBroadcast Opinion,Announcements Thought LeadershipLow Engagement Low Engagement
Social Media Landscape Vanguard Fidelity Investments PIMCOCustomer Service Annements Customer Service Announcements Opinion,Med-high Engagement Med-high Engagement Thought Leadership Low Engagement
Highlights• Segmentation and targeted messaging to the financial advisor audience is going to be important in the creation of a marketing platform• 3 of the 4 companies we researched are spending significant dollars in marketing and paid media• Blackrock are shifting away from an acquisition approach to a marketing approach through committing to spend hundreds of millions of dollars on marketing to build their brand in the the retail market over the next few years• Through the leveraging of its credibility PIMCO is taking a clear leadership position in the social space especially around Thought Leadership
Additional items we’d like to explore• What is the right way to segment investment advisors and their clients? By behavior? By professional maturity? Others?• What is the decision-making process for advisors to select the funds they offer their clients? How does that vary based on advisor attitudes and practices?• How does an investors understanding of and attitude towards investment brands impact their selection of products and their discussions with their advisors?• What are the points in the advisor and investor journey in which brand marketing and messaging can impact consideration or purchase? What form of message is best suited for those moments?• How do we optimize the marketing across these targets to achieve the best ROI for PIMCO?• What are the regulatory restrictions applied to paid and social media?• Are there any established ROI and specific success metrics for the planned marketing spend?
Leveraging the power of your Thought Leadership• PIMCO Credibility and Thought Leadership leads the industry and while Financial Advisors have a different level of sophistication when it comes to information understanding and consumption, we believe there is an opportunity to leverage the power of your credibility with Financial Advisors.• The opportunity is to take that Thought Leadership and make it relevant and useful to Financial Advisors• Thought Leadership as a toolset for Financial advisors engage with their customers
The relationship between Thought Leadership, Life Eventsand Products Thought Leadership Area of Products Life Opportunity Events
An Integrated Marketing Platform• Integrated, Planned, Purposeful, with Intent• Creating a highly focused and strategic marketing platform• All marketing activities are highly integrated with other PIMCO activities
Regional DifferencesEurope The Americas Asia/Pacific• 2011 has seen positive net inflows into • Strong inflows into fixed-income funds and • 2011 has seen outflows across all traditional mutual funds, hybrid funds, and ETFs ETFs in 2010 have slowed in 2011, while asset classes. They also have a higher there has been some recovery in equities propensity to pursue returns in real estate• In the UK retail distribution is dominated by (excluding Japan) IFA’s, and it has a similar regulatory • The tremendous diversity of products means environment to US increased competition for shelf space and • Developed markets like Australia and Japan share of mind with both professional buyers bear many similarities to the US and UK• In Continental Europe is dominated by retail within distributors and RIA’s banks. Well-differentiated products, top- • Developing markets like China, India, level service to distributors, and a strong • Mexico, Brazil, and Chile have seen some of Taiwan, and South Korea have been largely reputation are critical the strongest growth in assets under served via regional hubs in Hong Kong and management over the last year. Singapore where there is a more robust• Institutional clients vary by market, with financial infrastructure. China in particular some being primarily insurance focused is more restrictive, requiring the right while others have significant pension fund partner for joint ventures. markets featuring varying levels of intermediation