Asset management audience

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Part
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Asset management audience

In Central America, technology and ability to focus on several different investment goals is something that helps investors in this area decide upon an asset management firm. In Africa, investors are likely to be seeking asset management firms who offer ease of information, and sustainability. Finally, there is no data available specific to South America, most likely because data from each country in the region has yet to be compiled.

For each of the three global regions selected (Central America, South America and Africa) I have researched the following questions relating to asset management audience behavior: How do they find out about asset management firms? How do they decide to work with them? How do they use social and mobile? How do they interact with their web sites?

For each area I have searched for specific information relating to clients of top firms such as Nuveen, Pimco, Blackrock, Calvert Investments; however, I found that firm specific data was generally not available (except for in the case of Blackrock with Central America), and I believe that this is because the topic is fairly specific and the data has not been collected, or it has not been released online. Where this data was not available for a specific region, I have provided details as to why and have explained where I searched for data or how I attempted calculations.

CENTRAL AMERICA

Central America is currently plagued by uncertainty in politics and there is poor economic data available. This is particularly true in the region of Costa Rica. These factors impact the decisions made by investors in Latin America.

Blackrock has conducted research into financial investment behaviors of Latin Americans. While this is not specific to Central America, there is a great deal of overlap. This source defines the countries that are considered part of Central America, and this source, which defines Latin America, includes all countries of Central America. Blackrock's research has found that Latin Americans are most likely to be looking to invest in order to plan for retirement. They also have a very high awareness of financial topics, and allow this to influence their financial decision-making. In addition, Blackrock found that Latin Americans who are interested in using financial advisors are more likely to have sought out financial information.

In addition, Blackrock also found that in terms of the sources Latin Americans are using to get their financial data, 52% of them are using online sources, 37% speak to their family and friends, 37% speak to their banks over the phone and 32% consult a financial advisor. Therefore, when it comes to finding information surrounding investments, such as selecting an advisor, investors in Latin America are mostly using online sources.

Blackrock also found that 7 out of 10 Latin Americans are reportedly happy with their current financial advisors; however, they state that high fees are a pain point. This hints that Latin Americans may be influenced to select asset managers based on fees. Research has also highlighted that investors in this area are swayed by the use of technology in that they look for advisors who have digital offerings.

A final insight from Blackrock is that investors in this region aim to accomplish diverse goals. Therefore, they select asset management firms who can work with different investment objectives in mind. Objectives include safeguarding capital, saving for children's education and capitalizing on a good opportunity.

Overall, for Central America, we can sum up that investors in Central America are most likely to find out about asset management firms online due to the fact that this is where they source their financial information. In addition, factors like the economic and political climate are likely to influence their investment decisions, and may in turn impact the needs they have from asset management firms. Finally, I have found that the use of technology and ability to focus on several different investment goals are two items that help investors in this area decide upon an asset management firm.

I also searched for data on how investors in this region use social and mobile, as well as how they interact with websites of asset management firms. However, after a thorough search through online articles, news stories, statistics sites and academic articles (in both English and Spanish), I found that no relevant data is currently available online. I believe that this is because it is yet to be collected.

SOUTH AMERICA

For South America, data was less available. In order to understand investor behavior in this region I first looked for pre-compiled data on the topic. To do this, I first searched through online articles, news stories and information available specific to South America from companies such as Nuveen, Pimco, Blackrock and Calvert Investments. However, I found that no relevant data was available. I also looked for industry reports specific to this region on this topic, but unfortunately, I found that there are no authenticated official reports reflecting the investor behavior for South America.

Overall, data specific to South America has not been published by any government body or by asset management firms. I believe that this may be because data for the entire region has not been collected from each country and compiled into one source.

Therefore, my next step was to attempt a triangulation of this data. I decided to look for data specific to each country within South America. However, investor behavior data was only available for some countries, like Brazil and Colombia.

While I could not find a direct answer to your question, I was able to gather some information about this topic, which I think will be helpful for your project. To begin with, I found that in Brazil, the main source of information for investors is media such as newspapers.

In addition, I found that investors the most commonly used financial instrument in Brazil is equity (67%), followed by debt (52%), quasi-equity (41%), and other types of investments (22%). It can be assumed that investors in this area search for asset management firms who specialize in these kinds of investment.

AFRICA

Data for Africa is fairly limited due to the fact that it is an emerging market. Extreme civil unrest in many areas in this region have impacted the asset management market. Therefore, in order to discuss investor behavior in this region I have also used data from specific parts of Africa, such as South Africa, for which there is more available data.

In terms of what investors in Africa are looking for in an asset management firm, I have found data on South Africa that tells us that investors in this region seek knowledge and sustainability regarding investing. In fact, 89% of South African investors say "sustainable investing is more important to them now than it was five years ago". Therefore, they are looking for firms that provide this. Investors in this region also chase performance, and seek asset managers based on recent out-performance.

In addition, investors in this region also expect instant information made available to them on how their investments are doing. They will work with an asset management firm who will provide this for them.

There is a growing number of Africans with at least $1 million of investable assets. This means that there is a growing customer base for asset management firms. This customer base is likely to be changing and developing as the market stabilizes, meaning that what investors in this region are looking for may also be changing.

Again, I searched data on how investors in this region use social and mobile, as well as how they interact with websites of asset management firms. However, after a thorough search through online articles, news stories, statistics sites and academic articles, I found that no relevant data is currently available online. I believe that this is due to the fact that Africa is an emerging market.

To sum up, what we know about Africa in terms of investor behavior is that they are likely to be seeking asset management firms that offer ease of information and sustainability. In addition, the market is currently developing and is likely to change over the coming years as there are a growing number of Africans with the funds to invest.

CONCLUSION

I have found that investors in Central America are most likely to find out about asset management firms online. In addition, the use of technology and ability to focus on several different investment goals are aspects that helps investors in this area decide upon an asset management firm. Data specifically for South America has not been published by any government body or by asset management firms, and is not available online elsewhere, likely due to the fact that data for the entire region has not been collected from each country and compiled into one source. However, I found that in Brazil specifically, the main source of information for investors is media such as newspapers. Finally, I found that investors in Africa are likely to be seeking asset management firms who offer ease of information, and sustainability. In addition, the market is currently developing and is likely to change over the coming years as there are a growing number of Africans with the funds to invest.
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