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2012 Subscriber Study

Conducted by Signet Research


Business Profile


PRIMARY BROKER-DEALER LPL Financial Ameriprise Financial Services Wells Fargo Advisors Raymond James Financial Services Own my own broker-dealer Lincoln Financial Network Merrill Lynch Global Wealth/Bank of America Cambridge Investment Research Inc. Financial Network Investment Corp. Morgan Stanley Smith Barney RBC Transamerica Financial Services Commonwealth Financial Network FSC Securities Corp. MetLife Securities Royal Alliance Associates Inc. SagePoint Financial Inc. Securities America, Inc. Woodbury Financial Services Other

9% 6% 5% 4% 4% 3% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 50%

Base=Total Answering (Not including RIA) -Print Reader (998)

Percentages may not add up due to rounding.

Mean Years Affiliated with Broker-Dealer

10

Do not anticipate switching

94%


FIRM USED AS A PRIMARY CUSTODIAN OF CLIENT ACCOUNTS Schwab Advisor Services TD Ameritrade Institutional Pershing Advisor Solutions Fidelity Institutional Wealth Services National Financial Services Scott Trade LPL SEI Ameriprise Raymond James Investment Advisor Division JPMorgan Chase Trust Company of America Vanguard RBC TradePMR Northern Trust Shareholder Services Group Interactive Brokers State Street Other

23% 16% 13% 12% 5% 3% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 16%

Base=Total Answering - Dually Registered Working With a Broker-Dealer and Custodian or Registered Investment Advisor (RIA)-Print Reader (541)

Do Not Anticipate a Transition 96% Percentages may not add up due to rounding.


FORM OF COMPENSATION 50%

47%

45% 40% 35% 30% 25% 20%

18%

20% 15% 10%

8%

6%

5%

2%

0% Fee only

Fee and commission

Commission only Salary and bonus (includes profitsharing)

Salary

Other

Base=Total Answering-Print Reader (1,562)

Fee and commission (47%) is the most popular form of compensation among print readers.

Percentages may not add up due to rounding.


NUMBER OF YEARS OF EXPERIENCE IN THE FINANCIAL ADVISORY INDUSTRY Business Highlights Less than 5 years

6%

5 to less than 10 years

12%

10 to less than 20 years

33%

20 to less than 25 years

15%

25 to less than 30 years

17%

30 to less than 40 years

13%

40 years or more

4%

Base=Total Answering –Print Reader (1,569)

Mean Number of Years=20 Mean Number of Employees=190 Percentages may not add up due to rounding.


PROFESSIONAL DESIGNATIONS OR LICENSES Series 7 Series 63 Series 65 Life/Health CFP (Certified Financial Planner) Life Insurance Series 6 Series 24 Series 66 RIA MBA ChFC (Chartered Financial Consultant) CLU (Chartered Life Underwriter) CPA (Certified Public Accountant) Series 53 CFA (Certified Financial Advisor) CRPC Series 3 Series 4 Series 8 Series 26 AAMS AIF JD

65% 48% 39% 33% 29% 24% 24% 24% 21% 13% 11% 8% 8% 5% 5% 4% 4% 4% 4% 4% 4% 3% 3% Any (Net) 96% 3%

Base=Total Answering-Print Reader (1,557) Multiple Responses Permitted Percentages may not add up due to rounding.

Almost two-thirds (65%) of print readers have a Series 7 license.


PROFESSIONAL DESIGNATIONS OR LICENSES (CONTINUED) LUTCF Series 9 Series 10 Series 31 CFS CIMA CLTC Series 27 AEP AWMA CASL CDFA CMFC CRPS CSA EA Series 55 PFS RFC CEP CRC Other None of the above Base=Total Answering-Print Reader (1,557) Multiple Responses Permitted

Percentages may not add up due to rounding.

3% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 0% 10% 4%

Any (Net) 96%


INVESTMENTNEWS AUDIENCE PROFILE SUMMARY

Male

82%

Female

18%

Age Mean (Years)

52.4

Household Income Mean (Thousands)

$254

Base=Total Answering -Print Reader

Percentages may not add up due to rounding.


FORMAL EDUCATION

45%

42%

40% 35%

32%

30% 25% 20% 14%

15% 10% 10% 5%

2%

0% Graduated high school

Attended college

Graduated college

Postgraduate work

Postgraduate degree

Base=Total Answering -Print Reader (1,386)

Almost 9 out of 10 print readers (88%) have attained a Bachelor’s degree or higher.

Percentages may not add up due to rounding.


Clients and Services Offered


IF CLIENTS INFLUENCE DECISION ON WHICH MUTUAL FUND COMPANIES TO USE IN THEIR PORTFOLIOS

90% 81% 80% 70% 60% 50% 40% 30% 20%

19%

10% 0% Yes, Clients influence decision

No, Clients do not influence decision

Base=Total Answering -Print Reader (1,546)

Percentages may not add up due to rounding.


IF PURCHASED SOFTWARE FOR BUSINESS OR RELY ON FIRM TO PROVIDE SOFTWARE

60%

57%

50% 44% 40%

30%

20%

10%

0% Yes, I purchase

No, My firm purchases Base=Total Answering-Print Reader (1,573)

More than 4 out of 10 (44%) purchase business software on their own, rather than relying on their firm to provide it.

Percentages may not add up due to rounding.


TYPE OF MUTUAL FUNDS PROVIDE ADVICE ON

120%

100%

92%

96%

80%

70% 64%

60%

40%

36%

20%

0% Bond funds

Equity funds

Target date funds

Load funds

No-load funds

Base=Total Answering Who Provide Advice on Mutual Funds-Print Reader (1,216) Multiple Responses Permitted

More than 9 out of 10 print readers provide advice on Bond funds (92%) and Equity funds (96%). Percentages may not add up due to rounding.


INSURANCE PRODUCTS ON WHICH PROVIDED ADVICE TO CLIENTS PERSONALLY SERVE 70% 64% 60% 52% 49%

50%

40%

40%

38% 33% 29%

30% 20% 20%

16%

10% 2% 0% Term life Universal Variable Whole life Long-term Employee life life care benefits

Health

Disability

Other

None of the above

Base=Total Answering -Print Reader (1,408) Multiple Responses Permitted

Any (Net) 71% Almost two-thirds (64%) provided advice to their clients on Term life insurance, and more than half (52%) provided advice on Long-term care.

Percentages may not add up due to rounding.


RETIREMENT PRODUCTS ON WHICH PROVIDED ADVICE TO CLIENTS PERSONALLY SERVE 80% 70%

74% 64%

60% 50% 40% 30% 19%

20% 13% 10% 0% 401(k)

IRA/Keoghs

Other

None of the above

Base=Total Answering -Print Reader (1,406) Multiple Responses Permitted

Any (Net) 81% Almost three-quarters (74%) provided advice to their clients on 401(k), and almost two-thirds (64%) provided advice on IRA/Keoghs. Percentages may not add up due to rounding.


TYPES OF SERVICES PROVIDED ON 401(K) PLANS/PRODUCTS 70% 59%

60% 50% 40%

36% 34%

31%

30% 20% 10% 0% Advice on my client's Selling plans directly to Maintaining plans for my employment-based plans my clients clients

None of the above

Base=Total Answering -Print Reader (1,398) Multiple Responses Permitted

Any (Net) 69%

Percentages may not add up due to rounding.


IF PROVIDE ADVICE ON 401(K) PLANS AND/OR PROVIDE ASSET ALLOCATION ADVICE

Yes, Provide Advice to Companies With Less Than 100 Employees

53%

Yes, Provide Asset Allocation Advice For Their Personal 401 (K) Plans

68%

Base=Total Answering -Print Reader

Percentages may not add up due to rounding.


PERCENT OF TOTAL ASSET ALLOCATION - MEAN PERCENTAGES

Insurance Products - Mean

9%

Mutual Funds - Mean

41%

Annuities - Mean

13%

ETFs - Mean

11%

Individual Securities - Mean

16%

Other - Mean

10%

Base=Total Answering -Print Reader (1,282)

Percentages may not add up due to rounding.


ALLOCATIONS OF ASSETS MANAGED

Insurance Products

62%

Mutual Funds

88%

Annuities

65%

ETFs

58%

Individual Securities

63%

Other

32% Base=Total Answering -Print Reader (1,282)

Percentages may not add up due to rounding.


PERCENT OF CLIENTS IN FOLLOWING PHASE OF FINANCIAL PLANNING

Accumulation Phase - Mean

61%

Distribution Phase - Mean

39%

Base=Total Answering -Print Reader (1,279)

Percentages may not add up due to rounding.

Investment News 2012 Subscriber Study Stats  
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