identifying and marketing to the nextgen investor

Delaware Investments, a member of Macquarie Group, refers to Delaware Management Holdings Inc. and its subsidiaries. Macquarie Group refers to Macquarie Group Limited and its subsidiaries and affiliates worldwide.

Neither Delaware Investments nor its affiliates noted in this document are authorized deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities, unless noted otherwise.

(15527) For broker/dealer use only. Not for public distribution. © 2015 Delaware Management Holdings, Inc.

Identifying and marketing to the next generationD. Bruce Johnston

Social Media Consultant to Delaware Investments

MOBI Digital Media Holdings, LLC

November 17, 2015

Company, product, and service names in this presentation may be trademarks or service marks of others and their use does not imply their endorsement of, or an association with this program.

For educational purposes only. This presentation is not an endorsement of any social media networking service.

For broker/dealer use only. Not for public distribution.

Identifying and marketing to the next generation

Practice management content focused on helping you grow in an ever-changing market.

delawareinvestments.com/evolving-advisor

The Evolving Advisor

05/02/2023 | 2




• You shouldn’t take on younger clients hoping they will become good clients someday.

• Younger clients are not ready for advice.

• Looking across generations, regions, and client groups to expand your practice to capture growth is off the mark.

• Successful advisory firms focus on specific kinds of advice for specific kinds of prospects: doctors, business execs, tech entrepreneurs, or small business owners.

This time it’s differentConventional wisdom says:

05/02/2023 | 3




• Born: 1966—1976

• Coming of age: 1988—1994

• Current population: 41 million

• Two-thirds of Gen X have saved for retirement

Four out of 10 are not confident they’ll have enough for retirement.

Gen X: Who are they? The “lost” generation? A product of bad timing?

05/02/2023 | 4




• The “romantic fantasy”—retirement at age 65

• “Warped” beliefs about their financial futures

• More debt• 48% feel credit cards are a “survival tool”• 60% more mortgage debt• 82% nonmortgage debt

• More financially burdened• Hit hardest by the financial crisis from 2007—2010• $25,000 (median) in student debt

Linking Gen X and baby boomersTwo similar viewpoints, but two key differences

05/02/2023 | 5




• Born: 1980—2000

• Coming of age: 2000

• Currently: 24.7% of American population, largest generation since the baby boomers

• Account for an estimated $1.3 trillion in direct spending

66% of Gen Y fire their parents’ FA after they receive an inheritance.

Gen Y: Who are they?The millennials

05/02/2023 | 6




Examining the affluentGen X and Gen Y

05/02/2023 | 7

Affluent millennials seek greater involvement and control in financial decisions

ValidatorConduct their own research and

investment decision

Series1

36%

46%

36%

41%

MIL

LEN

NIA

LS

AFF

LUE

NT

MIL

LEN

NIA

LS

GE

N X

AFF

LUE

NT

GE

N X

Series1

48%45% 43%

40%

MIL

LEN

NIA

LS

AFF

LUE

NT

MIL

LEN

NIA

LS

GE

N X

AFF

LUE

NT

GE

N X

SoloistPerform their own research, make

decisions and execute trades




Attitudes toward the futureSacrifices today make a brighter tomorrow

05/02/2023 | 8




Sources of affluence are shiftingChanges across the generations

05/02/2023 | 9




Affluent millennials set ambitious goals

05/02/2023 | 10

AFFLUENT MILLENNIALS AFFLUENT GEN X

Series1

17%

10%

32%

19%

28%18%

Start a charitable foundation

Start a business

Buy asecond home

Strategically planning for the future




Changing jobsOpportunities come first, money second

05/02/2023 | 11

% OF PAYCHECK SAVED PER MONTH

Series1

66%

31%35%

12%

More than a third of affluent millennials save most of their paycheck

AFFLUENT MILLENNIALS AFFLUENT GEN X

25%+ 50%+




Affluent millennials are entrepreneurial

05/02/2023 | 12




If it’s Google or Apple, it’s for a millennialOpen to financial offerings from traditionally nonfinancial brands

05/02/2023 | 13

Affluent millennials are open to financial offerings from traditionally non-financial brands.

MILLENNIALS AFFLUENT MILLENNIALS

GEN X AFFLUENT GEN X

Series1 Series1

62.9%

76.1%

52.6%

58.7%

% who would try financial offerings from nonfinancial brands




70% of consumers prefer to interact with their bank online vs. face-to-face (66%) or over the telephone (52%)

“Online” not “on the line”Web-based services are preferred to speaking to someone

05/02/2023 | 14

70% online 66% face-to-face 52% telephone




Social media enables peer-to-peer interactionNot choosing face-to-face doesn’t mean millennials are antisocial

05/02/2023 | 15

AFFLUENT MILLENNIALS AFFLUENTGEN X

Series1

87%

63%

86%

68%

80%

55%

Peer opinions, thought leadership and product reviews are top content for affluent millennials on social networks % of affluent users that use at least 1 social network to obtain this type of info

Thought leadership Peer opinions Educational content




Social networks and financial decisionsCentral to the affluent millennial

05/02/2023 | 16




Google it, Facebook that, LinkedIn mePreferred social networks are the verbs of daily life

05/02/2023 | 17




Taking LinkedIn seriouslyMillennial activity on LinkedIn

05/02/2023 | 18

CONNECTIONS COMPANY FOLLOWS

GROUP ACTIVITY

Affluent millennials are especially active on LinkedIn

Compared to the general population on LinkedIn, millennials on LinkedIn have:

SHARES FINANCE TOPIC SHARES

+

13x as many2x as many




The client of the future is online

05/02/2023 | 19




Source: LinkedIn Earnings Slide Deck Q3 ’15 Results, October 2015

LinkedIn: A channel of choice

05/02/2023 | 20




Social media sites, 2012—2014% of online adults who use the following social media websites, by year

05/02/2023 | 21

Facebook LinkedIn Pinterest Instagram Twitter

67

2015 13 16

71

22 2117 18

71

28 28 26 23

Source: Pew Research Center’s Internet Project Surveys, 2012-2014. 2014 data collected September 11-14 and September 18-21, 2014. N=1,597 internet users ages 18+.

2012 2013 2014




Source: USC Annenberg Center for the Digital Future and Bovitz, Inc.,

The shifting user base of social media 2012—2014

05/02/2023 | 22




LinkedIn demographicsAmong Internet users, the % who use LinkedIn

05/02/2023 | 23

Total 25%

Men 26

Women 25

White, Non-Hispanic 26

Black, Non-Hispanic (n=94) 22

Hispanic (n=99) 22

18-29 22

30-49 32

50-64 26

65+ 12

High school grad or less 9

Some college 25

College+ 46

Less than $30,000/yr 17

$30,000 – $49,999 21

$50,000 – $74,999 32

$75,000+ 41

Employed 32

Not employed* 14

Urban 30

Suburban 26

Rural 12

Source: Pew Research Center, March 17–April 12, 2015

*Not employed includes those who are retired, not employed for pay, disabled, or students.




Generations and friendsMedian number of connections

05/02/2023 | 24

Millennial Gen X Younger boomer Older boomer/silent

250

200

98

50

Note: Based on Facebook users, n=960. In 2013, “younger boomers” were ages 49 to 57, “older boomers” were ages 58 to 67 and “silents” were ages 68 to 85.

Source: Pew Research Center’s Internet Project survey, Aug. 7–Sept. 16, 2013




• You shouldn’t take on younger clients hoping they will become good clients someday.

• Younger clients are not ready for advice.

• Looking across generations, regions, and client groups to expand your practice to capture growth is off the mark.

• Successful advisory firms focus on specific kinds of advice for specific kinds of prospects: doctors, business execs, tech entrepreneurs, or small business owners.

This time it’s differentConventional wisdom says again…

05/02/2023 | 25




• LinkedIn is the world’s largest professional network with more than 400 million members

• 120 million members in the United States

• 2 people per second join LinkedIn

Getting (and staying) connectedHow to develop a successful LinkedIn marketing strategy

05/02/2023 | 26




Why? What is your business objective for adopting LinkedIn marketing?

Who? What audience are you trying to reach on LinkedIn?

What? What key messages are you going to convey?

How? What LinkedIn tools will you use?

Structuring your campaignIdentify the three W’s?

05/02/2023 | 27




Develop SMART Business Objectives on LinkedIn:

• Specific

• Measurable

• Achievable

• Realistic

• Timely

Why? What is your business objective for leveraging LinkedIn?

05/02/2023 | 28




• Person: job function, seniority, groups, interests

• Company: company size, industry

• Location: utilizing zip codes

• Relationship on LinkedIn

Who?What LinkedIn audience are you focusing on?

05/02/2023 | 29




Identify the following millennial

05/02/2023 | 30




What?What groups and organizations are available?

05/02/2023 | 31




Groups for millennials 80+ on LinkedIn

05/02/2023 | 32



Groups for Gen Y60+ on LinkedIn

05/02/2023 | 33





Twitter and Gen Y

05/02/2023 | 34




Solve a problem — get to core of your audience pain points

Be believable — support with evidence

Be understood — reflect stakeholders’ understanding

Be distinctive — create competitive standout

Be credible — know your stuff

Be interesting—find a novel angle

Drive your agenda—have a goal in mind

Avoid negativity—get ahead on your own merit

Criteria for setting your key messages

05/02/2023 | 35




05/02/2023 | 36

Goal Tool

LinkedIn presence Personal profile Company pagesShowcase pages

GroupsSubgroups

One-to-one communication Messages InMail

Content distribution Published posts Company posts Discussion points

Content amplification Pulse

Tools available to you via LinkedIn



Identifying & Marketing to the Next Generation

05/02/2023 | 37

FACE to FACE

WEBSITE




• Download an informational document

• Watch a video or listen to a podcast

• Go to your website or LinkedIn profile

• Read your post

• Read a research report

• Pick up the phone and call you

Next stepsWhat calls to action can you have for your connections?

05/02/2023 | 38

For educational purposes only. This presentation is not an endorsement of any social media networking service.For broker/dealer use only. Not for public distribution.

Resources• delawareinvestments.com/financial-advisors

• delawareinvestments.com/evolving-advisor

(15527) For broker/dealer use only. Not for public distribution. © 2015 Delaware Management Holdings, Inc.

Contact information

Delaware Investments2005 Market Street

Philadelphia, PA 19103-7094

Individual investors:800 523-1918

Advisors:877 693-3546

For more information about Delaware Investments visit delawareinvestments.com

Investing involves risk, including the possible loss of capital.

This presentation is for illustrative purposes only and is not an endorsement of any website or service mentioned herein. The information provided is not intended to be a forecast or guarantee of future events or results.

Investment professionals should consult their compliance departments before accessing any social media networks for a business purpose.

The views expressed are those of Mr. Johnston and do not necessarily reflect those of Delaware Investments or any of its employees.

Mr. Johnston agrees to hold Delaware Investments harmless from any claims of intellectual property rights infringement that may arise out of Delaware Investments’ use of the foregoing materials.

(15527) 11/2015