2014 Analyst and Investor Survey: Trends in the Use of Digital & Social Media by the Investment Community
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Executive summary
1
Investors’ consumption of digital media for investment research continues to rise
59%
26%
+7
Read blogs for work
2
Use social networks for work
Use micro-blogging services for work
Online engagement is increasingly driving investment decisions
58%
+1
Investigated an issue after reading a blog…
3
30%
+2
27%
+3
…then made an investment decision based on a mosaic constructed around that blog post
Twitter influence continues to expand, but its growth may be under-reported due to recent inclusion on other platforms, like Bloomberg, which also jumped in importance
1 in 7
36%
Investors made an investment decision based on a mosaic constructed around a tweet
Investors in US who said real-time subscription services became more important this year © BRUNSWICK | 2014 | 1
Ranking of various information sources
Importance of information sources Information direct from companies remained the highest ranked resource for investment decisions (based on a scale from 1 to 7) Top information sources Top Information Sources in 2014 Average Rank Information direct from companies
Trends by year* 1,0
1.9 2,0
Real time subscription information sources
3.3
Analyst research*
3.5
Primary market research
2,0
1,9 Information direct from companies
2,0
Real time subscription information sources
3,0
3.9
3,0
4,0
3,4 3,7 3,9
3,3
Analyst research*
3,5 3,9
Primary market research
3,6 4,1
Online business media
4.5
4,5
5,0 5,0
Print business media Digital media
5.3
6,0
5,1
4,5
5,3
5,8
5,8
2012
2014
Online business media Print business media Digital media
6,1
5.8 7,0
2010
Q4. Please rank the following information sources by how much they influence your investment decisions or recommendations? * Indicates sell side and industry analyst research for buy-side analysts; indicates industry analyst research for sell-side analysts
Reported by mean of rankings © BRUNSWICK | 2014 | 3
Importance of information sources (Average rank, lower figures mean they are more influential) USA Information direct from companies
3,3 3,4 3,0
Primary market research
3,4 3,4 3,3
Online business media
Print business media
Digital media
Asia
2,0 2,0 2,0
1,8 2,1 2,1
Real time subscription information sources
Analyst research*
Europe 1,8 2,1
3,0 3,1 3,0
3,5 4,0
4,7 4,1 4,1
3,8 3,5 4,0
3,3 3,3
3,3 3,4 3,8
4,4 4,4 4,3
3,0 3,3
4,2 4,6 4,0
5,5 5,3 5,2 5,8 5,8 6,0
2014 2012 2010
5,1 4,6
5,0 5,0 4,9 5,9 5,8 6,3
2014 2012 2010
5,5 5,0 5,9 5,7
2014 2012
Reported by mean of rankings Q4. Please rank the following information sources by how much they influence your investment decisions or recommendations? * Indicates sell side and industry analyst research for buy-side analysts; indicates industry analyst research for sell-side analysts
© BRUNSWICK | 2014 | 4
Information from companies Face time with management remained the highest ranked resource made available by companies themselves (Based on a scale from 1 to 7) Top direct from company information sources Top Company Information Sources in 2014 Direct interaction with management
Average Rank
2.4
Trends by year*
1
2
2,4
2,5
2,4
Direct interaction with management Conference calls, webcasts
Conference calls, webcasts
3.4
3
3,2
3,5
3,4
Regulatory filings
3.4
4
3,5
3,8
3,4 3,5 3,8
Regulatory filings Company news releases
4,1
Company news releases
3.5
Investor / corporate presentation
Investor / corporate presentation 5
5,3
5,4
Company website
3.8 6
Company website Company digital/social media presence
5,4
5.4 6.5
6,7
6,5
Company digital media presence
6,9
7 2010
2012
2014 Reported by mean of rankings
Q5. Regarding information direct from companies, please rank the following by how much they influence your investment decisions or recommendations?
© BRUNSWICK | 2014 | 5
Rating information from companies (Average rank, lower figures mean they are more influential) USA Direct interaction with management
Europe
Asia
2,6 2,4 2,3
2,6 2,7 2,5
1,6 2,5
Conference calls, webcasts
3,3 3,2 2,9
3,5 3,6 3,5
3,3 3,8
Regulatory filings
3,4 3,3 3,2
3,4 3,6 3,6
3,6 3,6
Company news releases
3,5 4 3,7
3,4 4 3,2
3,7 4,2
Investor / corporate presentation
3,9 3,7 3,5
3,5 3,6 3,5
4 4,3
Company website
Company digital media presence
5,5 5,6 5,5 6,3 7,1 6,6
5,2 5,4 5,2 2014 2012 2010
5,7 5,1 6,7 7 6,7
2014 2012 2010
6,6 6,5
2014 2012
Reported by mean of rankings Q5. Regarding information direct from companies, please rank the following by how much they influence your investment decisions or recommendations?
© BRUNSWICK | 2014 | 6
Changing importance of information sources Real-time subscription services and blogs are the media platforms that grew the most in importance according to investors Percent saying each technology has become more important this year
Real time subscription services
42%
Europe
Blogs 53%
36%
USA
Asia
Social Networks
13%
Europe
Traditional business media - Online
20%
USA
28%
29%
Europe
USA
40%
Asia
29%
Europe
40% 20%
USA
Asia
Traditional business media – Print, Radio, TV
21%
Asia
11%
6%
11%
Europe
USA
Asia
Q6. {MULTIPLE RESPONSE] Which, if any, of the following information sources have become more important to you in your job in the past year?
© BRUNSWICK | 2014 | 7
Syndicated services see a rise in value
40%
Online-only Outlets (Seeking Alpha, Re/code, etc.)
48%
Syndicated Subscription Services (Bloomberg, Reuters, etc.)
35% 22%
Traditional Media's Online Properties (WSJ.com, NYTimes.com, etc.)
Social Media (LinkedIn, Facebook, Twitter, etc.)
16% 18%
9% 12%
2014 2012
Q9. (OPEN-ENDED) Please list which digital media sources provide you with the most valuable information for your work? Please list these in order of importance to you.
© BRUNSWICK | 2014 | 8
Impact of digital media
Most investors see the role of digital media increasing Nearly three in four investors believe that the role of digital media will play an increasing role in future investment decisions; Investors in Asia believe this most strongly
4% Yes, definitely Yes, probably No, probably not No, definitely not Unsure
6% 23%
21%
70% Increasing Role Europe
USA
Asia
64%
70%
79%
47%
Q12. Do you think that digital media such as blogs, micro-blogging services or social networking sites will play an increasingly important role in investment decisions in the future?
© BRUNSWICK | 2014 | 10
Digital media driving issue investigation Digital media sources remain a key information source, as investors are proactively following up on leads initially found online Information source prompting further investigation Information source by year
70%
57%
60%
58%
52%
Information source in 2014 by region
+1
Blogs
50%
Blogs
40%
Micro-blogging services
31% 30% 20% 10%
14%
29%
29%
28%
28% 25%
23%
+1 -1 +2
Micro-blogging services
USA
Europe
Asia
67%
52%
54%
2014
62%
54%
55%
2012
29%
26%
35%
22%
25%
44%
30%
21%
39%
33%
19%
37%
26%
25%
25%
14%
21%
44%
Message boards Social networking sites
Message boards
11% Social networking sites
0% 2010
2012
2014
Q10. Have you ever read any information posted on a blog, micro-blogging service or social networking site that has prompted you to investigate an issue further for your work?
© BRUNSWICK | 2014 | 11
Digital media driving investment decisions Nearly one-quarter of Asian investors made an investment decision after consulting a microblog, doubling the frequency of other regions Information source prompting investment decision Information source by year
30%
Information source in 2014 by region
27%
+3
24%
25%
Blogs
20%
Blogs
Europe
Asia
28%
25%
28%
2014
24%
22%
28%
2012
10%
12%
23%
4%
14%
24%
9%
9%
20%
7%
9%
19%
4%
7%
4%
7%
15% 21%
18% 14%
15%
12% 10%
10% 5%
USA
5% 4%
9%
11%
7%
2%
-2
Micro-blogging services
Message boards Social networking sites
Message boards
Social networking sites
0% 2010
+2 +1
Micro-blogging services
2012
2014
Q11. Have you ever made an investment decision or a recommendation after initially sourcing information from a blog, micro-blogging service or social networking site, which then led you to conduct additional research?
© BRUNSWICK | 2014 | 12
Appendix: approach and participants’ profiles
Digital media and investment decisions
Quantitative research with buy-side investors and sell-side analysts across the U.S., Europe and Asia, designed to understand usage of digital media in the investment process.
Online data collected between October 15 and November 1, 2013.
Invitations were sent to individuals from a subscription database, in USA, Europe or Asia. The following job titles were invited: ― Buy side: Analyst, Portfolio Manager, Portfolio Manager / Analyst, Director of Research, Research Associate ― Sell side: Analyst, Director of Equity Research, Research Associate
Data presented in the 2014, 2012 and 2010 surveys have been weighted by country to allow accurate comparison.
The survey included a sample size of 472 investors and had a margin of error of 4.5%.
© BRUNSWICK | 2014 | 14
Job role and type of investments
48% Sell-side
52% Buy-side 21%
Analyst / Researcher Investment advisor / Manager
Mutual fund
48% 11%
Other sell-side
Hedge fund 5%
11% 1% 1%
2%
Q2. Do you describe yourself as a buy-side investor or a sell-side analyst? Q3. Which of the following best describes your role and the type of investments you are responsible for?
Pension fund Insurance company Other buy-side
© BRUNSWICK | 2014 | 15
Industry sector
18% 33% 13%
4%
8% 8%
2% 4% 4%
5%
Q13. What is the primary industry sector you cover?
Technology / Media / Telecoms Consumer Financial Energy Manufacturing / Industry Healthcare Utilities Other sector Specific geography Generalist
© BRUNSWICK | 2014 | 16
Market cap focus
13% 24% Small Cap - $250m up to $2bn Mid Cap - $2bn up to $10bn
7%
30%
Large Cap - $10bn up to $100bn Other currency Not specified
27%
Q14. What is your market cap focus? Please indicate which currency.
© BRUNSWICK | 2014 | 17
Region
20% 40%
US EU Asia
40%
Q1. Where is your usual place of work?
© BRUNSWICK | 2014 | 18
Age
3% 21% 20%
27%
Q15. Which age band do you fit into?
29%
20-29 30-39 40-49 50+ Refused
© BRUNSWICK | 2014 | 19
For more information please contact: Jason Golz Partner
[email protected] +1 415 671 7676
Sparky Zivin Director
[email protected] +1 202 393 7337
