11/09/2024
Social media has become an important part of our daily lives, becoming one of the most widely used sources for information and news. In the latest wave of Research in Finance’s quarterly UK Advisory Study (UKAS), conducted from April to June 2024 with 117 discretionary fund managers (DFMs) and 167 investment advisers (IAs), we specifically included a topical section focused on industry information sources to explore this phenomenon.
As the media landscape has shifted, the habits of intermediaries have also changed. This transformation is seen in the growing proportion of financial professionals accessing social media for industry insights and updates. This trend is clearly present in the UK advisory space, where social media usage among discretionary fund managers (DFMs) and investment advisers (IAs) is on the rise.
Intermediaries were asked what sources of information they use to find out about investment products or asset management firms; sources included national websites, trade websites and social media etc.
Do you use any of the following sources of information to find out about investment products or asset management firms? Base: DFMs n=117, IAs n=167
Since Q4 2020, when this question was first asked, social media usage has been trending up among DFMs and IAs. This trend reflects not only the growing volume of investment content on social media but also a rise in the quality of content that is available to DFMs and IAs.
The trend is particularly pronounced among DFMs, who, being a younger demographic, are more inclined to engage with social media in their personal lives, and thus are potentially more inclined to integrate it into their professional lives as well.
When asked specifically about the social media platforms they use to consume investment content, including content from asset managers, LinkedIn emerged as the most popular platform.
Which of the following social media / social networks do you use to consume investment content, including content from asset managers? Base: DFMs n=117, IAs n=167
65% of DFMs and 46% of IAs are using LinkedIn to source investment content. Intermediaries value LinkedIn for its diverse offerings, from articles providing macroeconomic insights to industry updates. As one DFM noted:
Usage of LinkedIn has been trending up among DFMs and IAs over the last two years and this underscores the platform’s increasing importance in the professional landscape.
Which of the following social media / social networks do you use to consume investment content, including content from asset managers? Base: DFMs n=117, IAs n=167
How Research in Finance can help
Now in its tenth year, UKAS is a quarterly research study that gives a comprehensive analysis of the competitive UK retail landscape. It gives insight into current investment appetite of the most influential intermediaries and their clients, plus expectations going forward. Each quarter, a topical issue is explored to address pressing questions in the industry.
We also offer bespoke studies. For more information, please get in touch with Mick Hrabe or Richard Ley. You can also call us on +44 (20) 7104 2235.
