With Their Account, Brokerage Relationship, Or Financial Advisor
In The Next MonthAmong those expecting a change 41% are looking for a new relationship with a financial investment firm and brands with the highest consideration among prospects include Vanguard, Fidelity, and USAA.
Phoenix Marketing International (Phoenix), one of the fastest growing research companies in the U.S., announced today findings from its monthly study among individual investors age 21+ with $100K+ in investable assets, exclusive of 401(k) or similar employer-managed retirement plans.
About one-third of affluent investors (36.6%) participating in the Phoenix brand health and advertising performance studies reported in 3Q12 that they anticipate making a change with their investment account, brokerage relationship, or financial advisor in the next month. This share of investors who are “in market” is down from 39.7% measured in each of the first two quarters of 2012, as well as from 38.0% reported in 4Q11.
Contributing to an existing IRA, seeking assistance for retirement planning, or investigating online trading providers were the most frequently reported changes planned by investors in 3Q12. Activities least frequently to occur include closing all accounts and terminating all brokerage relationships, close an account but not terminate the relationship, and open a new IRA. So which affluent investors in 3Q12 anticipate making a change?
“Our historical monthly data show that investors who are in market for a change are younger than investors who are staying put (30.2% vs. 15.8% under age 50) and they are more likely to place 4+ online trades each month (24.0% vs. 11.7%),” stated Cait Robbins who is the Phoenix analyst responsible for the monthly U.S. study.
“We also see that investors planning a change are generally working full time (58.3% vs. 33.4%), fewer are retired (23.7% vs. 49.7%), and a larger share report household income in excess of $100K (56.0% vs. 45.2%),” adds Robbins. Of note, “in market” affluent investors report lower levels of investable assets (51.0% vs. 60.3% with $250K+ excluding 401k plan).
With 41% of affluent investors in 3Q12 planning to establish a new relationship with a financial investment firm or investigate online trading providers, the Phoenix monthly study provides insight on how individual brokerage firms are considered by their prospects or non-account holders. Leading the top-ten list of firms with the highest reported consideration, based on whatever investors have seen or heard about the brand, are Vanguard (31.1%), Fidelity (26.8%), and USAA (23.5%). Following these highly considered brands are American Funds, Charles Schwab, Franklin Templeton, T.Rowe Price, TD Ameritrade, TIAA-Cref, and Wells Fargo Advisors.
The Phoenix study polls 2,100+ affluent individual investors each month about their impression and consideration of numerous financial services brands including mutual fund companies, full-service and discount brokerages, insurance companies, and banks that sell investment services and products. A partial list of tracked brands includes AIM Investments, American Century Investments, American Funds, Ameriprise Financial, Bank of America, BlackRock, Charles Schwab, Edward Jones, E*Trade, Fidelity, Franklin Templeton, Genworth Financial, ING DIRECT (Sharebuilder), iShares, Janus, and John Hancock.
Other companies for which Phoenix has multi-year history on brand health and advertising performance include Merrill Lynch, MetLife, Morgan Stanley Smith Barney, Oppenheimer, Prudential Financial, Putnam, Raymond James, Riversource, Scottrade, T. Rowe Price, TD Ameritrade, TIAA-Cref, UBS, USAA, Vanguard, Wachovia, Wells Fargo Bank, and Wells Fargo Advisors.
For more information please visit http://www.phoenixmi.com/
Rhinebeck, NY – 2 October 2012