Rounding for non-math types
The demise of the penny gave us all a refresher course on rounding.
Most of us know that one to four rounds down and five to nine rounds up, but there can be some surprising pitfalls when dealing with the kinds of numbers that are common in financial services marketing, especially in commentaries and reports.
Let’s get to the bottom of this.
How to round
A common rounding task is to express large monetary units in words instead of numerals. For example, $1,000,000 is often written as $1 million (or $1.0 million, depending on your style) in tables and copy. Depending on the context, you may want to highlight that the figure is approximate.
The key to rounding is to do it once only – looking only to the number just to the right of the last desired digit to determine whether/what rounding is needed.
The key to rounding is to do it once only – looking only to the number just to the right of the last desired digit.
If your style calls for numbers rounded to one decimal place ($x.x), then you would round the following amounts as follows:
- $7,576,000 becomes $7.6 million – 7 rounds up 5 to 6. Don’t be tempted to keep going and round again to $8.0 million.
- $1,986,000 becomes $2.0 million – 8 rounds 9 up to 10, causing 1 to become 2. This is the only situation in which rounding affects a second column.
- $4,746,000 becomes $4.7 million – 4 leaves 7 rounded down to 7. If you start rounding too early, with 6 rounding up 4, then you’ll arrive at $4.8, which is incorrect.
Another rounding rule to watch for
You cannot “unround” figures.
If you have a return of 7.6%, but your style calls for two decimal places, then you need to go back to the source, rather than simply adding a zero to the end (7.60% might be incorrect). In this example, the correct figure could be anything from 7.55% to 7.64%.
That concludes our rounding lesson for non-math types. Hope you enjoyed it!
For editing help from those who know how to deal with numbers, please contact us at 416.925.1700, 844.243.1830 or info@ext-marketing.com.
Read more:
https://ext-marketing.com/marketing-articles/5-tips-better-infographics/
The rise of robo-advice. And what comes next.
The rise of robo-advisors is moving fast. The automation and algorithms behind it are advancing, all kinds of investors are using it, and more and more firms are launching their own platforms.
Simply put, robo is impacting the entire financial services industry in ways people never imagined.
To help get you oriented with robo’s wild journey so far, here’s a rundown of how it began, where it’s at now and where it will be soon.
Where robo-advice was – Humble beginnings
When the first robo-advisors launched back in 2008, they were generally limited to simple automated tasks, such as rebalancing assets in target-date funds. Because of the so-called lack of personalized service and human connection, many supposed robo’s basic role would continue.
But it would soon make major inroads. By the end of 2015, assets under management for robo-advisor platforms was at US$55-$60 billion.1
The general thinking around the growth of robo, however, was still low key. Many in the industry believed it could only serve the needs of tech-savvy millennials or those with little money to invest. In 2016, a Prudential Financial report found that only 17% of advisors believed robo-advice could help clients meet their financial-planning needs.2
Robo-advisors today – Prospects and adoption growing
Fast forward to now. That Prudential report found the same view among advisors changed dramatically in 2017, with 69% now believing robo-advice could meet financial-planning needs.2
Adoption of robo-advice has also grown considerably, with US$224 billion in AUM as at October 2017.3
“Adoption of robo-advice has also grown considerably, with US$224 billion in AUM as at October 2017.”
The typical profile of robo-advisor investors has changed in interesting ways too. Among the 14 robo-advisors in Canada, the average age of a user today is around 44 years old.4
Innovative fintech firms, such as True Link Financial, are even finding success among elderly investors by blending digital advice with over-the-phone service and prepaid debit cards.
What comes next for robo-advice – Beyond automation and ETFs
Looking forward, expectations for growth are high. A Business Insider report projects that robo-advisor AUM will hit US$1 trillion by 2020 and about US$4.6 trillion by 2022. While the North American market is expected to lead the way in the near term, Asia’s robo segment is expected to outperform by 2022.5
Yet, like any vastly growing space with new players hitting the scene, saturation of the market is inevitable. Robo’s strongest features – automated tax management, goals-based advice and exchange-traded fund (ETF) portfolio construction – are becoming basic commodities.
For financial firms to truly differentiate themselves, robo-advisors will have to do more than simply offer lower fees. The next leap forward – which is beginning to take shape among fintech firms – will be artificial intelligence (AI) and machine learning driving a more holistic robo solution that is specifically tailored to investors’ needs.
“The next leap forward – which is beginning to take shape among fintech firms – will be artificial intelligence (AI) and machine learning driving a more holistic robo solution that is specifically tailored to investors’ needs.”
In other words, robo’s future lies beyond automated portfolio management and low-cost ETFs. Making sustainable gains among all age groups, those with greater investable assets and, ultimately, the high-net-worth segment will come down to offering new, proprietary investment solutions that are not only cost-effective but can outperform, too.
For more insights into the future of financial services, contact us at 416.925.1700, 1.844.843.1830 or info@ext-marketing.com.
Sources:
1 Aite Research, Digital Wealth Management Market Update: A Mosaic of Models Emerges, March 2015
2 Prudential Assurance Company, Adviser Barometer report, Embracing opportunities in the adviser market, 2017
3 U.S. News & World Report, 9 Things to Know About Robo Advisors, 2017
4 The Globe and Mail, Robo-advisers find popularity where few thought they would, 2017
5 Business Insider, The Evolution of Robo-Advising Report, 2017
Read more:
https://ext-marketing.com/commentaries-articles/using-plain-language-in-your-financial-writing/
When you get good press, keep the momentum going
If you’re in financial services media relations or corporate communications, you know it’s challenging to earn positive press. Compared to the U.S., we don’t have many trade outlets to pitch.
So, when you do score some good press, pat yourself on the back – and then get back to work because your job is only partly done.
Be it a magazine or newspaper feature, TV interview, web profile or something else, you want to leverage the positive press as much as possible. The focus could be on a product, portfolio manager, senior executive or your company in general – it’s all good. You have an opportunity to help your Sales team start a productive conversation (with a prospect or existing client), retain assets or close a deal.
You have an opportunity to help your Sales team start a productive conversation (with a prospect or existing client), retain assets or close a deal.
3 ways to leverage good press
1. Article reprints
This is the most traditional way to push your story out to a broader audience. With article in tow, your Sales team can distribute the positive piece to clients who may be interested in a particular product, portfolio manager, asset class or sector. Every publication is different but, in general, you’ll need to contact the outlet to purchase article reprint rights. You can usually buy digital rights at the same time, allowing you to share the article electronically and post it on your internal/external websites.
Two caveats to consider. First, be selective because buying reprint rights can be costly. Make sure your Sales team and other colleagues can really use this article to their advantage. Second, the rights are typically time-bound (e.g., for six months or a year), so have a plan in place to make prompt use of the article.
2. Linking
A cheaper way is to link to the article (or video/audio clip) in email messages, e-newsletters or from a website teaser that you create. Just be mindful that the piece will be housed on the media outlet’s website, so you’ll be relying on them to keep the content posted for a certain period of time. Also, since some sites impose paywalls that may impede access to content for some of your target audience, linking is not always an effective route to take, despite the cost efficiency.
3. Social media
Tweet out article content and key quotes (if any) in a steady, methodical drip, while linking to the article, video or audio clip. If you have a corporate LinkedIn account, you can post the content there (or even do it from your personal account if you wish). You could also share it on other social media platforms to maximize exposure and keep the positive buzz circulating through cyberspace.
For more insights on how your company can benefit from leveraging good press, please contact us at 416.925.1700 or info@ext-marketing.com.
Investment scams: Are your clients at risk?
As an advisor, you don’t recommend just any investment to your clients. You know their financial goals, investment time horizon and tolerance for risk, and you make suggestions that suit them at each stage in life. You provide sound advice and educational information that you hope makes your clients more savvy investors.
It’s no surprise, then, that many advisors are caught off-guard when a long-term client falls for an investment scam. Yet it happens a lot more often than you might think.
Defining investment scam
First things first. An investment scam isn’t a legitimate investment that loses money. You can recommend an investment in a blue chip stock in good faith, and the stock can tank. That’s unfortunate, but it’s not a scam. In an investment scam, your client is intentionally lied to or misled so that they put money into an investment that has no chance of paying off. In most cases, the investment never existed to begin with.
In an investment scam, your client is intentionally lied to or misled so that they put money into an investment that has no chance of paying off.
Older Canadians at risk
In 2014, more than 42,000 Canadians filed a complaint with the Canadian Anti-Fraud Centre (CAFC). Almost 15,000 were actually classified as victims of a scam. About 70% of these victims were Canadians over the age of 50. Also in 2014, victims of fraud reported total losses of almost $75 million, of which more than 85% was lost by victims over the age of 50.
These CAFC statistics cover all types of fraud, not just investment scams, but older Canadians are more at risk for those too. A recent study of Canadians over 50 (from the Ontario Securities Commission) found that 46% of respondents had been asked to buy a fraudulent investment. The same study also found that investment fraud affects 60 out of 1,000 older Canadians.
This could be because older Canadians have had more time to accumulate wealth, and are therefore targeted by scam artists. But that’s just one theory among many. What we know for sure is that older Canadians don’t have as much time to re-build their wealth if they fall victim to an investment scam. Losing your nest egg is far more devastating at 65 than it is at 25.
What we know for sure is that older Canadians don’t have as much time to re-build their wealth if they fall victim to an investment scam.
Advisors can’t be expected to monitor or be responsible for every decision a client makes. However, there are steps you can take to help educate your clients about spotting an investment scam, as well as reporting investment fraud if it does happen. We’ll cover those steps in next week’s blog post.
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Commentary/MRFP roundup: June 2015
Commentary and MRFP season is in our sights. Here are some writing, editing and process resources to get you ready for the July rush.
Articles
Jargony phrases – and ways to keep them out of your commentaries
We all tend to use some jargon in conversation. But it’s best to keep that jargon – including highly technical terms – out of portfolio manager commentaries.
If you’re having trouble finding the right words to describe financial concepts without using jargon, don’t fret. We’ve got investor-friendly alternatives that you can use.
Rounding for non-math types
The recent demise of the penny gave us all a refresher course on rounding.
Most of us know that one to four rounds down and five to nine rounds up, but there can be some surprising pitfalls when dealing with the kinds of numbers that are common in financial services marketing, especially in commentaries and reports.
When technical terms attack: Avoiding jargon in financial commentaries
Sometimes jargon is useful, and can be an efficient way for investment professionals to discuss obscure and complex topics with precision.
More often though, jargon is used as a mental and verbal shortcut. Here are some common jargon terms … and ways to make them investor friendly.
Free ebook
Start off your next commentary period strong with our new ebook
Do you work on fund commentary projects such as monthly, quarterly or MRFPs? If so, “Your Commentary Prep-book: Get Ready for Crunch Time in No Time” is for you.
Contact us at 416.925.1700 or info@ext-marketing.com for more insights into creating a highly efficient commentary process.
Involved in the commentary process? Ask these questions.
Although your commentary deliverables – from monthly marketing commentaries to annual MRFPs and everything in between – are always changing, one thing stays the same: they cause stress.
Timelines are rarely in your favour. And you’re likely juggling many cross-functional relationships. Add in tight budgets and global offices and you’re going to reach for the headache medication.
The commentary pros at Ext. Marketing Inc. are here to help. They’ve put together a series of questions to get you thinking proactively about your commentary deliverables:
1. Are you including the right information in your content requests and your output?
2. Keeping in mind that different commentaries may have different timelines, do you have enough time to deliver?
3. How can you get the information you need, faster?
4. Are you delivering the highest-quality work on a consistent basis?
5. Given the collaborative nature of the commentary process, how can you get everyone working together better?
6. Looking back at your last run through, is there a better way to manage this project?
7. Do your commentaries interrupt other marketing initiatives?
The most significant problem with regulatory work is that it’s both time consuming and time sensitive. That’s a bad combo that can result in significant challenges.
Another big issue with commentary work is that it’s cross functional. Your fund accounting, legal, compliance, investment, marketing, product and operations teams all likely have a hand in the process.
Finally, we get to the big, overarching question:
8. How can you improve your commentary process?
Although they may not be easy to answer, these eight questions will definitely help you focus on the right answers. And help you make dramatic improvements to your commentary process.
Contact us at 416.925.1700 or info@ext-marketing.com for more insights into creating a highly efficient commentary process.
A writing lesson from Warren Buffett
If your readers can’t understand your writing, you’re wasting their time and yours. That’s why plain language writing is so important.
It doesn’t help that financial services is filled with jargon and technical terms that are truly hard to simplify.
Nevertheless, forward-thinking companies in the financial services industry know why plain language is essential and so do the regulators, as even the Securities Exchange Commission (SEC) has got into the game with its A Plan Language Handbook.
Who do you think the SEC got to write the preface? None other than Warren Buffett, who wrote: “To succeed, I don’t need to be Shakespeare; I must, though, have a sincere desire to inform.”
To succeed, I don’t need to be Shakespeare; I must, though, have a sincere desire to inform.
Yes, it’s another keeper from the Oracle of Omaha.
Financial services communications needs plain language
Very few people need to understand a research paper on particle physics … and very few people would even try. From a practical, day-to-day perspective, knowing or not knowing what’s inside that research paper will not affect our lives. So physics papers can stay technical.
But let’s look at financial services communications.
Articles about, let’s say, diversifying an investment portfolio are read by many people with different knowledge levels, from your son to your grandmother. Although their investment knowledge varies, the importance of diversification, for example, does not.
Understanding financial concepts can make or break a healthy and happy retirement for all readers.
Plain language writing can help the financial services industry build trust
The implications of language that obscures, confuses or misdirects are broad. Readers may think the writer is hiding something, is out of touch or simply does not care. Even worse, the reader may misinterpret such convoluted writing.
Obviously, people who write financial services copy (from brochures to monthly commentaries) are not hoping for or expecting these outcomes, but that doesn’t stop these unwanted feelings from forming.
Unfortunately, plain language writing is not easy.
That Buffett wrote “sincere desire” is telling. Because the deeper you get into plain language, the more you realize that putting together a short list of plain language rules, or a “tips and tricks” document, is going to be difficult.
In many ways, plain language is more of a mind shift than a technical one. Here are a few more plain language resources that can help you get started:
- Federal plain language guidelines
- Plain language from Canada’s public works
- Rules for writing plain English
- BC Securities Commission plain language style guide
Given that we are all affected by the financial world, “readers” are not just investors and savers, but everyone. And everything that gets in the way of plain language writing should be removed.
Plain language writing is worth the effort. If you want to learn more, contact Ext. Marketing Inc. at 416.925.1700 or info@ext-marketing.com.
How to generate coverage from the financial media
If you work in financial services marketing, corporate communications or public relations, chances are that you crave positive exposure from the financial media.
Being proactive will help you create and execute on an integrated marketing strategy that includes targeted media coverage. Here are some basic tips to get you started.
1. Know your market
Let’s say you want to promote a mutual fund company’s products or portfolio managers. The first thing you should do is determine your main point of differentiation. Do you have a fund that’s outperforming in a big way? A new product (especially if it’s novel in some regard or in a sector that’s getting a lot of buzz)? Does a portfolio manager take a unique approach to achieving strong returns?
Look for an angle that captures a reporter’s attention – something that stands out from the crowd and would interest the reporter’s audience.
Look for an angle that captures a reporter’s attention – something that stands out from the crowd.
2. Know the media landscape
The financial media is relatively small in Canada, which can be good or bad.
It’s good because you can know the key players in short order. Check out media outlets like Investment Executive, Advisor Group, Morningstar, National Post and The Globe and Mail. That’s a great starting point to become familiar with the writers, the topics they cover, the tone they take, etc.
A small media market is bad because you have the whole industry vying for limited positive exposure. The competition for coverage can be fierce – all the more reason to have a great story to tell.
The competition for coverage can be fierce – all the more reason to have a great story to tell.
3. Know your objectives
As you work on a plan for media coverage, consider what you want to achieve. By knowing your end goal, you can work backwards as you develop your strategy.
For example, if you want article reprints available to your sales force as prospecting or retention tools, then focus on gaining media coverage for key portfolio managers or funds on a recommended list. Good press is hard to come by, so make the most of it when you get the chance.
For more ideas about interacting with the financial media, please contact us at 416.925.1700 or info@ext-marketing.com.
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