Understanding Shareholders' Use of Information and Advisers (pdf)

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FIGURE 37Mutual Fund Ownership Characteristics by Respondent SegmentsRespondent SegmentsAll Do-It-Yourself Adviser-Partnership PassiveRespondents Shareholders Shareholders ShareholdersMedian per HouseholdMutual fund assets 1 $34,000 $48,000 $38,000 $19,000Number of funds owned 1 6 6 10 4Length of fund ownership 9 years 10 years 14 years 6 yearsPercent of HouseholdsOwn: 2Stock mutual funds 91 93 92 89Bond mutual funds (net) 54 47 77** 57Tax-exempt bond mutual funds 40 31 62** 48Taxable bond mutual funds 30 23 66** 31Money market funds 49 51 64** 41Primary mutual fund purchasechannel:Sales force (net) 56 36 85 75Full-service broker 28 25 56** 25Financial planner 17 8* 21 29Insurance agent 7 2 7 13Bank representative 4 1 1 8***Direct market (net) 44 63 14 26Directly from fund company 37 53 13 21Discount broker 7 10 1 51Outside of employer-sponsored retirement plans.2Multiple responses included.Note: Number of respondents varies.*Do-It-Yourself Shareholders are statistically different from Adviser-Partnership and Passive Shareholders at the 95 percent confidence level.**Adviser-Partnership Shareholders are statistically different from Do-It-Yourself and Passive Shareholders at the 95 percent confidence level.***Passive Shareholders are statistically different from Do-It-Yourself and Adviser-Partnership Shareholders at the 95 percent confidence level.38
FIGURE 38Respondent Segments’ Pre-Purchase Information NeedsRespondent SegmentsAll Do-It-Yourself Adviser-Partnership PassiveRespondents Shareholders Shareholders ShareholdersFund-related Information ConsideredPrior to Most Recent Purchase 1(percent of respondents consideringeach item)Risk level 90 91 91 89Total return 88 90 98** 83Reputation of fund company 88 86 99 87Investment goals 82 89 82 72Types of companies in which the 81 85 90 73***fund investsAnnual fees 76 80 77 70***Fund performance relative to 75 79 80 69***similar fundsSales charge 73 78* 65 67Fund company's tenure in business 71 74 82** 65Fund company's selection of funds 69 66 83** 70Fund performance compared with an index 59 71 63 43***Price per share 59 59 77** 54Fund manager’s investment style 59 60 91** 47Minimum investment 58 52 59 66***Total assets 57 54 77** 56Fund manager’s tenure at fund 51 50 79** 43Portfolio turnover rate 46 43 77** 43Fund manager’s professional 45 38 80** 46background800 telephone number for customers 42 45 45 3624-hour a day access 30 34 37 23***Mean number of items considered 13 13 15** 12Median number of items 13 14 15 12consideredPre-purchase Information Sources 1(percent of respondents consultingeach source)Professional financial advisers 59 46* 75 73Articles in investment newsletters, 53 70* 41 33newspapers, or magazinesMutual fund prospectuses and 46 52 42 38annual reportsFriends, family, or business associates 30 19* 39 45Mutual fund rating or information 19 24 22 9***servicesMutual fund company newsletters 20 23 20 15Investment seminars 8 8 10 8Online services 6 8 10 3***Mutual fund company telephone 8 8 4 7representativesMean number of sources used 2 2 2 2Median number of sources used 2 2 2 11Multiple responses included.Note: Shaded items are those required by regulators. Number of respondents varies.*Do-It-Yourself Shareholders are statistically different from Adviser-Partnership and Passive Shareholders at the 95 percent confidence level.**Adviser-Partnership Shareholders are statistically different from Do-It-Yourself and Passive Shareholders at the 95 percent confidence level.***Passive Shareholders are statistically different from Do-It-Yourself and Adviser-Partnership Shareholders at the 95 percent confidence level.39
Page 1 and 2: ICI Research SeriesUnderstandingSha
Page 3 and 4: Copyright © 1997 by the Investment
Page 5 and 6: L I S T O F F I G U R E SEXECUTIVE
Page 7 and 8: I N T R O D U C T I O NBACKGROUNDTh
Page 9 and 10: company sponsoring the fund, the fu
Page 11 and 12: ■chases. However, more Adviser-Pa
Page 13 and 14: C H A P T E R 1The Role of Professi
Page 15 and 16: Respondents Who Effectively Delegat
Page 17 and 18: Respondents Who Have a Collaborativ
Page 19 and 20: elationship as a joint effort, and
Page 21 and 22: Adviser’s Most Important Function
Page 23 and 24: C H A P T E R 2Information Needs Be
Page 25 and 26: ters. Only 19 percent of respondent
Page 27 and 28: MONITORING MUTUAL FUND INVESTMENTSI
Page 29 and 30: Among respondents consulting a prof
Page 31 and 32: three. In particular, the majority
Page 33 and 34: C H A P T E R 3Improving Shareholde
Page 35 and 36: FIGURE 27Preferred Sources for Mutu
Page 37 and 38: C H A P T E R 4Shareholder Market S
Page 39 and 40: account, yield or rate of return, p
Page 41: the survey, compared with ten years
Page 45 and 46: FIGURE 40Respondent Segments’ Rel
Page 47 and 48: A P P E N D I X AResearch Methodolo
Page 49 and 50: A P P E N D I X BSupplemental DataF
Page 51 and 52: FIGURE 47Fund-related Information C
Page 53 and 54: FIGURE 49Periodicals Most Frequentl
Page 55 and 56: FIGURE 51Sources Used to Monitor Mu
Page 57 and 58: FIGURE 53Use of Mutual Fund Annual
Page 59 and 60: FIGURE 55Interest in Learning More
Page 61 and 62: FIGURE 58Preferred Format for Mutua

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