Social Media Gaining Influence in Institutional Asset Management

Institutional investors are increasingly looking to their most trusted asset managers for market research, and are now more than ever finding that content via social media.

According to new data from Greenwich Associates, 22% of institutional investors from North America, Europe and Asia named trust in the brand as the most important factor in selecting an asset manager, compared to 21% citing the ability to achieve high returns.

“Our data shows that, increasingly, the best way create a trusted brand is by delivering insightful and relevant content through digital media,” says Dan Connell, Greenwich Associates Managing Director and co-author of the new report Investing in the Digital Age: Media’s Role in the Institutional Investor Engagement Journey.

In the report, Greenwich Associates data highlights how institutional investors are consuming and using content via digital and social media:

68% of investors used social media to research asset management firms in 2018, up from 36% in 2015.
63% of institutional investors now consume social media while less than half regularly consume finance-specific trade publications.
86% of investors say they take action on content they receive, with 41% doing so at least weekly.

“While the ability of asset managers to achieve specific investment goals is paramount, they need to fully embrace and take advantage of the evolving media landscape,” says Brad Tingley Market Structure and Technology Analyst at Greenwich Associates and the report’s co-author.

Investing in the Digital Age: Media’s Role in the Institutional Investor Engagement Journey examines the investor’s journey throughout the manager selection process and analyzes the importance of digital media channels, the use of content types and formats, social vs. traditional news media, the trust factor, and keys to continuous engagement.