Category: Press Release

BOSTON, December 3, 2019 – Putnam Investments announced today that it has been recognized by DALBAR for mutual fund service quality for the 30th consecutive year. The continuous acknowledgement of Putnam’s work in this area includes being named a DALBAR Mutual Fund Service Award winner and recipient of DALBAR’s Total Client Experience Award.

“We are humbled to have received strong, ongoing recognition from DALBAR these past 30 years.” said Putnam President and Chief Executive Officer Robert L. Reynolds. “Our service teams work hard every day to ensure our clients expectations are not only met – but exceeded. Putnam’s entire organization is truly honored to receive this award and we are committed to continuing our unyielding focus on world class service in the coming years.”

For over three decades, DALBAR has conducted rigorous, systematic and yearlong testing of customer service based on industry benchmarks and has identified service providers that exceed industry standards. The DALBAR Service Awards are given annually by DALBAR, Inc., a leading financial services market research and consulting firm to elite service providers.

“Putnam is incredibly proud of the extraordinary work ethic and dedication demonstrated on a daily basis by our service teams in addressing a multitude of client needs,” said Putnam Chief of Operations Michael J. Woodall. “Another hallmark of this team’s approach to service is a continuous thirst to improve and innovate in everything that we do — to ultimately achieve the best outcome for our clients.”

About DALBAR

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned a reputation for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of October 2019, Putnam had $177 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

Putnam mutual funds are distributed by Putnam Retail Management.

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BOSTON, November 18, 2019 – In keeping with its commitment to provide financial advisors with a broad range of investment solutions to meet the changing needs of their clients, Putnam Investments today announced that it has begun offering seven equity model-based separately managed accounts (SMAs) and is expected to have six multi-asset model portfolios available to the marketplace by year-end.

“The demand for strategies in the model delivery structure is rapidly increasing as advisors seek products that are fee-efficient and tailored to meet their clients’ individual preferences,” said Robert L. Reynolds, President and CEO, Putnam Investments. “We think it is important to offer our investment strategies through a host of different investment vehicles to allow maximum flexibility for advisors as they develop individualized portfolio solutions that help generate their clients’ desired investment results.”

Putnam’s decision to offer SMAs reflects emerging preferences among investors for strategies in the equity space that are generally cost-effective and tax efficient and provide opportunities for customization, enabling investors to work with their advisors to screen for certain investments that they deem in conflict with their personal values.

“Most importantly, investors are looking for solid, long-term, risk-adjusted performance that can produce positive returns net of fees,” explained Reynolds. “We are pleased to make a number of our competitively performing active equity strategies available to address a growing marketplace desire for key characteristics offered in an SMA format.”

The recently launched model SMAs developed by Putnam include:

• U.S. Large Cap Value Equity
• U.S. Large Cap Growth Equity
• U.S. Multi-Cap Core Equity
• Sustainable Leaders
• Sustainable Future
• U.S. Small Cap Growth Equity
• International Durable Equity (ADR only)

Putnam to Offer Multi-Asset Model Portfolios

In addition to offering SMAs, Putnam will also enter the multi-asset model portfolio space later this year with six offerings. The model portfolios will use a systematic investing approach and be composed of Putnam’s active mutual funds and third-party exchange-traded funds (ETFs). The portfolios largely will be benchmarked to custom multi-asset portfolio benchmarks.

Each model portfolio will have a different risk profile as a result of the split between equities and fixed income, with increasing levels of equities in increments of 20%. Active investments will represent approximately half of each portfolio.

Putnam’s Multi-Asset Model Portfolio lineup will include:

• Income (targeted 0% equity)
• Balanced Income: (targeted 20% equity)
• Conservative Growth: (targeted 40% equity)
• Balanced Growth: (targeted 60% equity)
• Growth (targeted 80% equity)
• Aggressive Growth (targeted 100% equity)

The portfolios will be managed by Putnam’s long-tenured Global Asset Allocation team, which currently manages approximately $15 billion in assets, as of October 31, 2019.

“Model-delivered solutions represent an exciting convergence of customer preferences, modern distribution, and technological advancement. We will continue to be active in innovating around the delivery of our active management insights,” added Reynolds.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of October 2019, Putnam had $177 billion in assets under management. For more information, visit www.putnam.com.

BOSTON, April 8, 2019 – It is no longer a question of whether a financial advisor uses social media, but rather how they make use of it, according to the sixth edition of the Putnam Investments Social Advisor Study released today. Nearly all U.S. financial advisors (98%) are using social media for business and/or personal use at this point, with 83% using it for business purposes.

Additionally, the advisor community self-reports a high level of proficiency when it comes to their social media capabilities, with 61% now describing their skill level as “expert,” up from 46% last year.

“The use of social media for business purposes by financial advisors has matured during the six years we have conducted this study, evolving from the periphery of the advisor experience into a critical tool for business development and client service,” said Mark McKenna, Head of Global Marketing, Putnam Investments. “We are fully committed to helping advisors use social media as an indispensable piece of their practice management, both to build their businesses and to deepen their relationships with clients.”

Among advisors not currently using social media for business, 28% said they were “absolutely certain” that they would start using it for business in the next three years, up from just 9% last year. “Clearly, we have not yet reached a saturation point,” noted McKenna.

Advisors report using their social media expertise to make initial contact with referrals from existing clients (57% compared with 52% last year*), acquire new clients (92% versus 86% last year**) and increase assets under management (the average AUM increase from social media initiatives is $4.9 million, including $1.4 million in the past 12 months*).

Putnam’s survey of 1,021 financial advisors across the United States also found that almost half of advisors (48%*) strongly agree that social media has changed the nature of their relationship with their clients, up from 39% last year. Of those who agree social media has changed the nature of their client relationships:

• More than two-thirds (67%) say they have more frequent communication with clients as a result of social media; yet 44% note that they connect with their clients less often by phone or in person than before;
• Seven in 10 (70%) say it is easier to share information with their clients; and,
  Fifty-seven percent say decision-making is faster and easier.

Social Media Networks: LinkedIn Still Dominant, but Other Platforms In Play

According to the study, in terms of use for business purposes, LinkedIn continues to be the platform of choice for advisors where they follow companies, comment on or share others’ updates, request recommendations and post to groups or pages. Advisors also are increasing their use of LinkedIn for business development: connecting with other financial professionals, enhancing current client relationships, cultivating prospective clients and expanding their professional knowledge.

“Each of the major social media networks is preferred for different reasons, with LinkedIn favored for improving referral networks, Facebook for enhancing current client relationships and Twitter for business development initiatives such as thought leadership,” said McKenna. “Additionally, advisors are increasing their use of YouTube, Instagram and Snapchat, often using them at rates approaching those of the more established social networks.”

Overall, business use of key social platforms by advisors stacks up as follows: LinkedIn (72%), Facebook (62%), Twitter (52%), YouTube (41%), Instagram (38%), and Snapchat (22%).

Putnam’s research also provided a profile of advisors gaining the most assets from social media use, relative to their total AUM. Of the 14% of advisors whose assets gained through social media represent 10% or more of their total AUM:

• Close to half (46%) are between the ages of 30 and 39 (versus 35% of all advisors in the study);
• Their average AUM gained through social media is three times the average for all advisors in the study ($15.3 million versus $4.9 million overall);
• Nearly six in 10 (58%) say social media plays a very significant role in their practice (compared with 47% of all advisors in the study);
• They are more likely to pay for enhanced services from LinkedIn (80% versus 62% overall);
• They are more likely to have been trained on social media by a colleague from their firms or offices (50% versus 39% overall) or by a wholesaler or representative from an investment partner firm (42% versus 37% overall); and,
• Their next step to growing social media is to integrate the data into their CRM system (57% versus 45% overall).

* Base: Use social media for business and helped gain clients

** Base: Use social media for business

Methodology

The research, conducted online in late 2018 in conjunction with NMG Consulting, included participation by 1,021 financial advisors across the United States who have advised retail clients for more than two years. The sample includes a mix of newer and more established advisors, who work across a range of intermediary channels, including independent and regional broker-dealers, nationwide planning firms, wirehouses, insurance firms and RIAs. Advisors were queried about AUM and assets gained via social marketing in ranges; median and average samples are based on range midpoints. The results of the survey can be found at www.advisorsaresocial.com.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of February 2019, Putnam had approximately $169 billion in assets under management. For more information, visit www.putnam.com.

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BOSTON, March 8, 2019 — Putnam Investments today announced that Putnam Income Fund (PNCYX) received a Lipper Fund Award last night at an industry dinner in New York for its outstanding performance over the past 10 years in the Core Bond category.

Putnam Income Fund is managed by Michael V. Salm, Putnam’s Co-Head of Fixed Income; Brett S. Kozlowski; and Emily E. Shanks. The fund seeks high current income consistent with what Putnam management believes to be prudent risk, and pursues opportunities across all sectors of the U.S. bond market, including mortgage-backed securities, corporate bonds and other government obligations.

“Putnam Income Fund has been one of top performers in its category for many years,” said Putnam Investments President and CEO Robert L. Reynolds. “We are pleased to see the fund recognized by Lipper for its long-term track record of solid, risk-adjusted results. Our investment team works tirelessly every single day to uncover opportunities on behalf of our clients and investors, and we are proud to receive this award.”

As of January 31, 2019, Lipper ranked Putnam Income Fund in the 7th percentile for one-year performance; 2nd percentile for three-year performance; 24th percentile for five-year performance; and 1st percentile for 10-year performance, where the fund ranked #1 out of 291 funds in the Core Bond 10-year category.

Additionally, Putnam Income Fund has an overall Morningstar rating of five stars among 877 funds in the Intermediate-Term Bond category. The fund has also received five stars in the three-year and 10-year Morningstar categories and four stars in the five-year category.

Strong performance, strong flows at Putnam

At the end of December 2018, Putnam had 22 actively managed mutual funds* with an overall rating of four or five stars by Morningstar. Moreover, in March 2018, Barron’s ranked Putnam one of the top 10 mutual fund families across multiple time periods for the past decade, based on strong investment performance across asset classes. The firm ranked 7th (out of 58) for one year, 7th (out of 53) for five years and 9th (out of 49) for 10 years.

About the Lipper Fund Awards

The Lipper Fund Awards annually recognize funds and fund management firms for their consistently strong risk-adjusted three-, five- and 10-year performance relative to their peers based upon Lipper’s quantitative, proprietary methodology. The awards are sponsored by Refinitiv, formerly the Financial and Risk business of Thomson Reuters. For more information, visit www.lipperfundawards.com.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of January 2019, Putnam had approximately $169 billion in assets under management. For more information, visit putnam.com.

*Class Y shares as of December 31, 2018

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BOSTON, February 13, 2019 — In an ongoing effort to stimulate innovation, maximize opportunities on behalf of clients, and manage its business in a dynamic, but thoughtful manner, Putnam Investments today announced the appointment of Aaron Cooper to the newly created role of EVP and Chief Operating Officer, reporting directly to Putnam Investments President and CEO Robert L. Reynolds.

As EVP and Chief Operating Officer, Cooper will oversee several of Putnam’s business areas, including Investments, Operations, Digital Technology, and Global Investment Strategies (the firm’s product strategy group).

Cooper, age 41, who previously served as the Chief Investment Officer of Equities for the $170 billion asset manager, will be replaced by Putnam veteran Shep Perkins, age 48, in that role. Perkins has been Co-Head of Equities with portfolio management responsibilities at the firm. Both Cooper and Perkins joined Putnam in 2011.

“Successfully operating in today’s asset management environment requires continual evolution and reinvention – both in internal structure and in serving the marketplace,” said Reynolds. “We believe that our new leadership model, including the creation of a Chief Operating Officer role, will allow Putnam to strongly align its resources around many of its key priorities as we move forward.”

Reynolds added, “I look forward to working closely with Aaron in further strengthening Putnam’s strategic focus and driving key aspects of our firm’s business goals. Aaron brings impressive intellectual depth, superior management experience, and an unyielding commitment to the mission at hand, which will only serve to benefit our firm and our clients.”

About Aaron Cooper

Aaron Cooper is EVP and Chief Operating Officer for Putnam Investments, where he oversees the firm’s Investments, Operations, Digital Technology, and Global Investment Strategies businesses. Prior, Cooper was Chief Investment Officer, Equities, responsible for leading Putnam’s Equity group, including the portfolio management, research, and trading areas. In addition, he has been a portfolio manager of Putnam Global Sector Fund, Putnam Research Fund, and George Putnam Balanced Fund. Cooper joined Putnam in 2011.

Before joining Putnam, Cooper was Managing Director of Research at Fidelity Investments from 2007 to 2011. He also formerly managed Fidelity Advisor Health Care Fund, Fidelity VIP Health Care Portfolio, Fidelity Select Leisure Portfolio, and Fidelity Select Medical Equipment and Systems Portfolio. Cooper holds a B.A. degree in Economics from Harvard University. He has been in the investment industry since 2000.

About Shep Perkins

Shep Perkins is Chief Investment Officer, Equities, where he leads the firm’s equity group, including the portfolio management, research, and trading teams. Before that, Perkins was Co-Head of Equities, responsible for providing strategic direction to portfolio managers and equity analysts. In addition, Perkins is a portfolio manager of Putnam Global Equity Fund and Putnam Sustainable Leaders Fund. He joined Putnam in 2011.

Prior to joining Putnam, Perkins was the portfolio manager of Fidelity Mid-Cap Stock Fund from 2005 to 2011. Prior to that, he was responsible for Fidelity OTC Fund. He received a B.A. in Economics from Amherst College and is a CFA Charterholder. He has been in the investment industry since 1993.

Strong performance, strong flows at Putnam

At the end of December 2018, Putnam had 22 active mutual funds* with an overall rating of four or five stars by Morningstar, a respected industry observer. Moreover, in March 2018, Barron’s ranked Putnam one of the top ten mutual fund families across multiple time periods for the past decade, based on strong investment performance across asset classes. The firm ranked 7th (out of 58) for one year, 7th (out of 53) for five years, and 9th (out of 49) for ten years.

In 2018, Putnam had net inflows overall, and positive flows in each of its three primary business lines: retail mutual fund, institutional, and defined contribution – investment only.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of January 2019, Putnam had approximately $170 billion in assets under management. For more information, visit putnam.com.

*Class Y shares as of December 31, 2018.

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BOSTON, February 4, 2019 — Putnam Investments today saluted the New England Patriots on their Super Bowl victory yesterday, their third championship in the past five years. The win represents the sixth National Football League title under the ownership of Robert Kraft and the Kraft Sports Group, and under the leadership of Head Coach Bill Belichick and Quarterback Tom Brady — who have won more championships than any other coach-quarterback combination in history.

“Putnam Investments would like to congratulate the entire New England Patriots organization for their outstanding victory and impressive team effort yesterday, in a continuing display of unparalleled greatness,” said Putnam Investments President and Chief Executive Officer Robert L. Reynolds. “Sustained excellence has been a hallmark of the New England Patriots for the past two decades, and the team’s achievements this year — in Super Bowl LIII and throughout the season — are yet another reminder of the power of hard work and commitment to performing at the highest level.”

Putnam Investments has been the official investment management sponsor of the New England Patriots since 2011. Putnam and the Patriots, one of the world’s leading sports franchises, have a multifaceted, multiyear marketing agreement through Putnam’s Performance in Motion affinity marketing program. The agreement combines extensive awareness-building opportunities with high-profile branding at Gillette Stadium, as well as substantial local and national exposure through the media.

For the fifth season, Putnam enabled Patriots fans to share their enthusiasm through Patriots Fancam, which allows those who attend a game at Gillette Stadium to download high-resolution images of themselves and share them with friends, family and colleagues via email and on social media outlets including Facebook and Twitter.

Putnam’s Performance in Motion affinity marketing program draws upon sports that appeal to its advisor, institutional and investor audiences. As part of this effort, the firm works closely with teams and athletes who best personify Putnam’s focus on performing at the highest level. For more information, please visit www.putnam.com/performanceinmotion/.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 80 years of investment experience. At the end of December 2018, Putnam had $160 billion in assets under management. For more information, visit putnam.com.

BOSTON, December 12, 2018 – Putnam Investments has officially launched a new campaign designed to showcase the firm’s strong active management capabilities and build awareness among financial advisors and investors about the importance of including an active approach — seeking to outperform benchmarks and looking for opportunities in changing markets — when building a diversified investment portfolio.

The campaign, “Always Active,” which will run through 2019, reinforces the company’s commitment to providing the marketplace with an array of differentiated active management strategies with solid, risk-adjusted net-of-fee performance.

At the end of November 2018, Putnam had 22 active mutual funds with an overall rating of four or five stars by Morningstar, a respected industry observer. Moreover, in March 2018, Barron’s ranked Putnam one of the top ten mutual fund families across multiple time periods for the past decade, based on strong investment performance across asset classes. Specifically, the firm ranked 7th (out of 58) for one year, 7th (out of 53) for five years, and 9th (out of 49) for ten years.

“The value of active management is in its ability to look beyond benchmarks and capitalize on undiscovered investment opportunities in rapidly changing markets,” said Robert L. Reynolds, President and CEO, Putnam Investments. “By providing alpha generation, mitigating risk, and dampening volatility, active management stands as a critically important component of a well-structured, diversified investment portfolio. This is a message that we aim to keep front and center with the marketplace.”

Reynolds indicated that the new initiative will build on Putnam’s deep legacy in active management and fundamental research — across all asset classes, including equity, fixed income, and global asset allocation — and will also emphasize key capabilities like sustainable investing and multi-sector strategies.

“As a firm that has always believed in actively managing its business, as well as its investment philosophy, we are taking an ‘active’ approach to this new campaign by leveraging digital display ads and native content advertising, social media, email, blogs, video, webcasts, traditional, and more,” said Mark McKenna, Head of Global Marketing, Putnam Investments.

“The ‘Always Active’ campaign demonstrates how Putnam conducts business and highlights the fact that Putnam is always active — in its management, partnership, and technology,” McKenna added.

Putnam has been providing actively managed investment strategies for more than eight decades. The firm’s seasoned team of professionals work across asset classes and disciplines, managing a broad spectrum of investment mandates, as it seeks strong, long-term net-of-fee performance.

About Putnam Investments

Founded in 1937, Putnam Investments is a global money management firm with over 80 years of investment experience. At the end of October 2018, Putnam had $169 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

Putnam mutual funds are distributed by Putnam Retail Management.

BOSTON, November 29, 2018 – Putnam Investments announced today that it has been recognized by DALBAR for mutual fund service quality for the 29th consecutive year. The continuous acknowledgement of Putnam’s work in this area includes being named DALBAR Mutual Fund Service Award winner and the sole recipient of DALBAR’s Total Client Experience Award for the past seven years.

“We view service as a critical component of our business and part of the value that we bring to our clients each and every day,” said Putnam President and Chief Executive Officer, Robert L. Reynolds. “Putnam is honored to be a recipient of this year’s DALBAR Mutual Fund Service Award – and we remain committed to expanding our long legacy of world-class service.”

For nearly three decades, DALBAR has conducted rigorous, systematic and yearlong testing of customer service based on industry benchmarks and has identified service providers that exceed industry standards. The DALBAR Service Awards are given annually by DALBAR, Inc., a leading financial services market research and consulting firm to elite service providers.

“Putnam and its enormously talented team of service professionals take tremendous pride in delivering an exceptional client experience, which we believe is one of the hallmarks of our firm,” said Putnam’s Chief of Operations Michael J. Woodall. “We look forward to raising the bar in this area for our company – and the industry – every single day.”

About DALBAR

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, DALBAR has earned a reputation for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. DALBAR awards are recognized as marks of excellence in the financial community.

About Putnam Investments

Founded in 1937, Putnam Investments is a global money management firm with over 80 years of investment experience. At the end of September 2018, Putnam had $177 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

Putnam mutual funds are distributed by Putnam Retail Management.

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BOSTON, September 6, 2018 – Putnam Investments is on the move to one of the most prominent buildings in the heart of downtown Boston’s Financial District. The firm is expected to complete the relocation of its headquarters to 100 Federal Street by the end of 2018. In addition to its senior leadership team, a sizable number of Putnam associates (approximately 800) across business lines and staff functions will be based in the newly designed facility. Putnam will continue to have a substantial presence in Andover, Massachusetts, which houses critical operations and business functions.

“When Putnam Investments began searching for a new headquarters that would provide state-of-the-art facilities for our clients and employees, and allow for future growth, our focus was always on remaining in Boston, home to our firm for over 80 years,” said Robert L. Reynolds, President and Chief Executive Officer, Putnam Investments. “As we begin a new chapter at 100 Federal Street, in one of the great financial hubs in the country, Putnam looks forward to continuing its highly active presence in the city’s business community and civic life.”

Putnam has secured a 15-year lease agreement for the space at 100 Federal Street with Boston Properties, the building’s majority owner and manager, for nearly 250,000 square feet of space, spanning 11 floors of the 37-floor structure. The new location provides a mix of personal, group and open workspaces designed to encourage innovation and collaboration.

Key elements of the new Putnam headquarters include:

• Private entrance to street-level lobby on Congress Street
• Highly visible branding on a major intersection in Boston’s Financial District (Franklin and Congress Streets), which features a large-screen digital media board — one of the few of its type in the United States
• Street-level auditorium that seats over 150 people
• Mezzanine-level conference facilities that include an extensive network of meeting rooms, private outdoor space and a full kitchen to host client events
• Professional in-house HD broadcast studio
• LEED Gold-certified building with a strong focus on green operations
• Access to ground-level glass atrium featuring a winter garden with coffee bar and dining options

Originally completed in 1971, 100 Federal Street was designed in the Art Moderne style by the Boston architectural firm of Campbell, Aldrich & Nulty.

About Putnam Investments

Founded in 1937, Putnam Investments is a global money management firm with more than 80 years of investment experience. At the end of July 2018, Putnam had $175 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com and follow us on Twitter @Putnam_News.

BOSTON, April 3, 2018 – In the fifth edition of the Putnam Investments Social Advisor Study, released today, financial advisors almost universally report that the use of social media has changed how they communicate with clients, conduct business, approach prospects and convert leads, all while sharply reducing the amount of face-to-face time with clients and prospects previously required to manage their business.

Putnam’s survey of 1,014 U.S. financial advisors found that 86% of those using social media for business reported it helped them gain clients, up from 80% in 2016, and the vast majority of those who gained (88%) report that their use of social media has changed the nature of their client relationships a “great deal” in a number of ways:

• Two-thirds (67%) of advisors find that it is easier to share information with clients
• Nearly six in ten (59%) report having more frequent communication with clients overall, although 38% say they connect less frequently by phone or in person
• More than half (54%) of advisors say they have a better professional relationship with their clients, while 47% report a better personal relationship with their clients
• Half (50%) report decision making is faster and easier

“Advisors today are increasingly using social media as a tool not only to communicate with their clients and prospects, but also to deepen and evolve their ongoing relationships with clients,” said Mark McKenna, Head of Global Marketing, Putnam Investments. “These professionals are also finding that leveraging both the business and personal sides of social media enables them to more easily connect with current clients and attract and develop new business.”

McKenna emphasized that the benchmark for successful use of social media as a business tool has clearly gone up in recent years. “It is imperative for advisors to employ a highly active, evolving strategy when it comes to utilizing social media in various aspects of their business. As a firm that is deeply committed to helping advisors grow their practices through dynamic, yet effective social media engagement, Putnam believes that there is a tremendous, ongoing opportunity for financial intermediaries to build and strengthen long-term relationships with clients through this critically important communications channel.”

Social Media Use Driving Business

According to the study, social media use is nearly universal among financial advisors, with fewer than three percent of advisors reporting no business or personal use of social media. Those advisors not using social media, on average, are 60 years old, have 24 years of industry experience and have only $69 million in assets under management. By comparison, advisors who use social media for their business have on average $89 million in assets under management and advisors who use social media only for personal reasons have on average $85 million in assets under management, suggesting that even a casual social media presence may result in additional business.

Advisors using social media say they are spending somewhat less time on simply connecting and posting on the various platforms, but remain highly positive on a focused use of social media to attract and develop new business. The vast majority of those using social media for business (86%) report gaining business from social media activity, up from 80% in 2016 and 49% in 2013, the first year the study was conducted. Six in ten (60%) advisors who have gained say social media use has improved their efficiency a great deal compared with traditional networking, up from 56% in 2016, and more than eight in ten (83%) say that social media use has helped shorten the time required to convert a prospect into a client.

Social Platforms of Choice

As social media use matures, advisors are using multiple social media platforms for different functions. LinkedIn is overwhelmingly the network of choice of advisors for their business, with 73% reporting they use LinkedIn, compared with 56% who use Facebook and 46% who report using Twitter for business. Use of other platforms for business is also growing: 42% of advisors indicate they use Yelp, 39% use YouTube and 34% use Instagram for business. Although LinkedIn continues to be the leading business site, advisors report they use Facebook with the greatest frequency for business — an average of 22 times per month, versus only 16 for LinkedIn.

“Over the past five years, we have found that LinkedIn’s share of net business use has flattened among advisors while the use of every other network for business has grown,” added McKenna. “LinkedIn remains a critical tool, as its user demographics and rich, indexed data are unique compared with the other leading social media platforms. LinkedIn provides a concentrated network of college educated and relatively affluent users, making it the best place to qualify leads, obtain referrals and begin the process of converting prospects. However, advisors are conducting day-to-day social media business on other platforms.”

Advisor “Social” Skills Vary Greatly

Although social media use is widespread and 86% of advisors 1 say that social media has helped them gain clients, advisors report a range of social media skill levels:

• Nearly half (46%) of advisors claim to be social media “experts”
• 41% say they “just get by”
• 5% are just getting started
• 2% would like to get started but need helpAdditional Findings

The study yielded other notable findings:

• Advisors with $100 million or more in assets under management are more likely to have gained clients from social media use
• One-third of advisors 1 (34%) say social media plays a very significant role in their marketing efforts, up from 29% in 2016
• Nearly two-thirds (65%) of women advisors (and 57% of men) say that using social media has improved their efficiency a “great deal”
• Advisors with three to 10 years tenure in the industry are the most likely to gain assets with social media use

Methodology

The research, conducted online in late 2017 in conjunction with NMG Consulting, included participation by 1,014 financial advisors across the United States who have advised retail clients for more than two years. The sample includes a mix of newer and more established advisors, who work across a range of intermediary channels, including independent and regional broker-dealers, nationwide planning firms, wirehouses, insurance firms and RIAs. Advisors were queried about AUM and assets gained via social marketing in ranges; median and average samples are based on range midpoints. The results of the survey can be found at AdvisorsAREsocial.com.

About Putnam Investments

Founded in 1937, Putnam Investments is a global money management firm with 80 years of investment experience. At the end of February 2018, Putnam had $173 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

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