investor and corporate image survey presentation · base: those who are stock investor ref....

Investor & Investor &

Corporate Image SurveyCorporate Image Survey

Prepared for:Prepared for:

The Stock Exchange of ThailandThe Stock Exchange of Thailand

Prepared by:Prepared by:

The Nielsen Company The Nielsen Company Date:Date: February, 2009February, 2009

Confidential & Proprietary

Copyright © 2008 The Nielsen CompanyPage (2)[M:\Rsch_SB\J.44546\Attract_ Investor_ Report.ppt

� Research Objectives/Research Approach/Investor Definition

� Investor Marketing

AGENDA AGENDA

InvestorMarketing InvestorMarketing

Growth Strategy for Capital MarketGrowth Strategy for Capital Market

Securities CompanySecurities Company

Asset Management FirmAsset Management Firm

SETSET



Research ObjectivesResearch Objectives

Exploring

Investor

Behavior

Driving Idea

Strategic

Information

� To identify investor behavior which would reflect

opportunities or barriers in promoting capital market

participation in terms of increasing type of financial

product adoption, share of wallet in capital market, and number of investor base among retail investors.

�To be driving idea and specification of the competitive

arena that will support securities company and asset management firm

�To be baseline information for securities company and

asset management firm in reviewing asset, competencies,

and resource to implement strategies in the face of competitive threats or enticing opportunities.



Research ApproachResearch Approach• Methodology: Face-to-face interview. List of investors were provided by

securities company and asset management firm

• Area coverage: Greater Bangkok and Upcountry; including Central, North,

Northeast, and South

• The eligible respondents for this study are:

�Male/female aged 25+ years.

�All are currently have an opened-account for trading stock or mutual

fund

• Total Sample Size: N = 411; which is split to:

�291 interviews in Greater Bangkok

�120 interviews in Upcountry

• Fieldwork period: March 19 – October 1, 2008



Mutual

Fund

Only

20%

Stock

Only

30%

Stock &

Mutual

Fund

50%

Base: All respondentsRef. Q11/T11A

(411)

Investor Type

Respondent’s Profile

Inactive

11%

Active

89%Inactive

5%

Active

95%

Stock Investor

Base: Those who are stock investorRef. Q11/T11A,Q12/T12A

Mutual Fund Investor

Base: Those who are mutual fund investorRef. Q11/T11A,Q13/T13A

(327) (289)

Investor: Investor who have open-account with securities company or asset management firm

Active Investor: Investor who have trade stock/mutual fund within the past 12 months

Inactive Investor: Investor who have not trade stock/mutual fund within the past 12 months

Definition



Growth Strategy for Investor MarketingGrowth Strategy for Investor Marketing

Increasing

New investor

to participate in

capital market

Increasing

Share of wallet

of financial

products in capital market

Increasing

Adoption

of financial



Copyright © 2008 The Nielsen CompanyPage (7)[M:\Rsch_SB\J.44546\Attract_ Investor Report.ppt

2 0 15 4 4

80

6

12

4 49 10

18

9

16

25

1318

1722

34

27

32

40

43 30

31

38

38

64

46

18

4148

40

26

000%

20%

40%

60%

80%

100%

1 type

2 types

3 types

4 types

5 types

(410)

Higher education level or monthly personal income leads to an increase in adoption of financial product in capital market.

Adoption of Financial Product

in Capital Market

Base: All RespondentsRef. Q22a/T22A.3A

Total(%)

Master or higher

(C)(%)

30,000-49,999 (Q)(%)

100,000 and over

(S)(%)

Education

Average no. of Financial Assets Owned:

2.03

Diploma and less (A)(%)

Bachelor(B)(%)

Less than 30,000 (P)(%)

50,000-99,999(R)(%)

Monthly Personal Income

(56)

1.45

(193)

1.84

(161)

2.47

(56)

1.79

(91)

1.78

(138)

2.05

(114)

2.28

BC

C

AB

AB

B

A AB

SS

Q

PQ



2 1 39

17 128

1410

30

50

31

14

53

2

4 36

23

7 6

129

3 3

7

250

30 3040

26

100

1 011

0

100

0

0

4

43

5

0%

20%

40%

60%

80%

100%Bank deposit

Cooperative Share

Life Insurance

Government Bond

Gold

Foreign Currency/FCD

Stock

LTF/RMF

Other Mutual Fund

Corporate Bond

(1,400) *

Potential investors and mutual fund only investors tend to save their money in ‘bank-base’ portfolio choices than other investor group.

Portfolio Choices

Base: All who answers (Not include Investor who refuse to answer)Ref. Q138(Q22b+Q24)/T22B.15A

Investor(%)

Potential Investor *(%)

(405)

Average no. ofAssets Owned: 3.09 5.18

Stock Only (F)(%)

Mutual Fund only (G)(%)

Both Stock and Mutual Fund

(H)(%)

Investor Type

(120) (83) (202)

4.03 4.69 6.07

* Source: Potential Investor and

Corporate Image Survey 2007,

conducted among middle income class

(minimum monthly personal income of 20,000 baht or higher)



Investment Pyramid reviews INVESTORS…

• Investment Pyramid indicates how strong the

products are at different stages of the

investor decision making process:

� investors go through a hierarchy of decisions

from awareness, considerations, trials and

ownership

� on becoming aware of the brand, working

out whether they would consider

� with the brand under consideration, how well

it triggered actual ownership

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

(411)

(Own currently)

(Ever used product)

(Consider using)

(Spontaneous + prompt)

= Conversion ratio at each stage XX%

99

79

80

85

66

86%

99%

94%

Stock

(%)



Investment Pyramid enables us to focus marketing attention on the stage

where each product is losing its investors

High

involvement

Low

involvementachieving product saliency

providing product relevance

ensuring product

performance

Prioritized Action

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

(411)

(Own currently)

(Ever used product)

(Consider using)

(Spontaneous + prompt)


99

79

80

85

66

86%

99%

94%

Stock

(%)



100

94

95

95

77

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

Investment Pyramid : Financial Asset

Saving

Deposit/

Fixed Deposit/ Government

Saving Bank

Lottery

(%)

Among investors, bank deposit is strongest portfolio choice in each stage of decision process, followed by life insurance, and real estate.

95%

99%

100%

76

19

20

22

11

Cooperative

Share

(%)

29%

95%

91%

Total

AwareTotal

Spontaneous

97

69

70

72

31

74%

99%

97%

Life

Insurance

(%)

Total

AwareTotal

Spontaneous

93

28

33

44

33

47%

85%

75%

Government

Bonds

(%)

Total

AwareTotal

Spontaneous

Gold

(%)

97

38

41

50

22

52%

93%

82%

Total

AwareTotal

Spontaneous

98

64

65

73

24

74%

98%

89%

Land/

Property/

Condominium

(%)

Total

AwareTotal

Spontaneous


Foreign

Currency

(%)

Total

AwareTotal

Spontaneous

51

4

5

8

3

16%

80%

63%

Base: All respondentsRef. Q16a,b,c/Q19,/Q22/T150A1

(411)



52

4

4

11

3 36

4

4

9

461

5

8

15

499

79

80

85

66

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

Stock

(%)

Challenges are on converting those who are aware of mutual funds and corporate bonds to consider investing in these savings/investment choices. In addition, awareness building for

derivatives, foreign bonds/stocks, ETF is needed.

86%

99%

94%

90

49

50

59

38

LTF/RMF

(%)

66%

98%

85%

93

46

53

60

40

Total

AwareTotal

Spontaneous

Other

Mutual Fund

(%)

81

16

20

29

15

Total

AwareTotal

Spontaneous

Corporate

Bonds

(%)

36%

80%

69%

Derivatives

(%)

25%

63%

53%

Total

AwareTotal

Spontaneous

Total

AwareTotal

Spontaneous

Foreign

Bonds/Stock

(%)

21%

100%

36%

Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1

(411) = Conversion ratio at each stage

Investment Pyramid : Financial Asset in Capital Market

XX%

Total

AwareTotal

Spontaneous

ETF

(%)

25%

100%

44%

Total

AwareTotal

Spontaneous

65%

87%

88%



Creating Sustainable Competitive AdvantageCreating Sustainable Competitive Advantage

Sustainable

Competitive

Advantage

Securities Company

The Way to Compete• Positioning strategy

• Distribution strategy, etc.

Basis of Competition• Investor base

• Securities Company’s reputation

• Competencies in market report/research

• Accuracy/reliability of information provided

• Reliability/trustworthy of marketing

representative

Which Attribute You Compete • Information provided to investors

Where You Compete Against

• Competitors/strategic group


Copyright © 2007 The Nielsen CompanyPage (14)[M:\Rsch_SB\J.44546\Attract_ Report.ppt

Basis of CompetitionBasis of Competition……What are your Assets & Competencies?



96

67

68

75

58 98

75

75

81

63 99

80

83

88

7096

68

71

75

57

Current Owned

Trialists

Considerers

Awareness

Stock status is strong across gender and monthly personal income group, especially among male investors, and investors with higher monthly personal income level.

100

85

85

90

72

90%

100%

94%

Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A8-150A9, T150A15-T150A18

Investment Pyramid : Stock

Total

AwareTotal

Spontaneous


78%

96%

95%

Total

AwareTotal

Spontaneous

(265) (146)

78%

99%

91%

Total

AwareTotal

Spontaneous

(57)

83%

100%

93%

Total

AwareTotal

Spontaneous

(91)

89%

96%

94%

(138)

Total

AwareTotal

Spontaneous

(114)

Total

AwareTotal

Spontaneous


Male

(%)

Gender

Female

(%)

99

85

86

89

69

90%

99%

97%

Less than

29,999 baht

(%)

30,000 -

49,999 baht

(%)

50,000 –

99,999 baht

(%)

100,000 baht

and Over

(%)



Reason for not consider

Investing in Stock

Stock

(%)

UnaidedUnaided

Lack of time to monitor the market

Does not know about risk and return

Not enough savings

Too risky

Does not have reliable consultant

Unfavorable economic situation

Too difficult to understand

Does not have information

Does not know about investment analysis

Not attractive return

42

18

9

7

5

4

4

4

4

2

(55)Base: Mutual Fund only Investor who aware but not consider investing in stockRef. Q17a/T17A01

Among mutual fund only investors, stock is weak in terms of inducing investors to consider this investment choice. Lack of time to monitor the market is registered as the most important barrier.

Investment Pyramid :Stock

99

79

80

85

66

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

86%

99%

94%

Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1,T150A30

(411)

93

0

2

27

30

29%

0%

7%

Total

AwareTotal

Spontaneous

(84)

Mutual Fund only

Investor

(%)

Investor

(%)



Mutual fund only investors profiles show that they are potential target for investor base expansion.

Investor Profile

Monthly Personal IncomeMonthly Personal Income

Less than 29,999 baht

30,000-39,999 baht

40,000-59,999 baht

60,000-79,999 baht

80,000-99,999 baht

100,000-199,999 baht

200,000-499,999 baht

500,000 baht and over

Savings of Bank DepositSavings of Bank Deposit

1-50,000 baht

50,001 - 100,000 baht

100,001 - 500,000 baht

500,001 - 1,000,000 baht

More than 1,000,000 baht

Base: All respondentsRef. Q10/T10A,Q23R2/Q24R1(Q138)/T24A01

StockInvestor (D)(%)

Mutual Fund only Investor

(G)(%)

12

14

22

13

8

21

6

2

8

10

27

22

33

(252) (71)

21

17

24

10

6

15

2

2

11

11

35

15

27

(327) (84)



33%

35%

33%

Investors place equal importance on both securities company and marketing representative as key factors when consider opening new trading account.

Key Influencer for

Selecting Securities Company

Base: Those who are Active Stock Investor (310)Ref. Q43/T43A

Marketing

representative

Both Marketing representative & Securities company

Securities company

28

24

18

12

11

6

2

Marketing Representative Marketing Representative Marketing Representative

Accuracy/reliability of

information provided

Reliability/trustworthy of

marketing representative

Client investment objective

understanding

Marketing representative’s

investment advice

Stock market knowledge

Recommendation from others

Others

Total(%)

(208)Base: Those who answered 'Marketing representative’ or ‘Both as equal’Ref. Q45/T45D

Market report or research

Securities company's

reputation

Recommendation from others

Lower commission fee than

other firm

Activities offered i.e. seminar

provided to customers

Other

Criteria in Choosing Securities Company

Securities Company Securities Company Securities Company

34

30

19

9

3

5

Total(%)

(203)Base: Those who answered Securities Company’ or ‘Both as equal’Ref. Q44/T44D



Which Attribute You CompeteWhich Attribute You Compete……This involves attributes valued by the market.



Securities Company Overall Impact VS Performance-- KEY ATTRIBUTES --

AttributeAttribute

50

38

48

77

50

62

66

60

68

72

50

78

46

38

17

39

31

27

33

30

26

37

19

6

2

12

3

31

1

12

4

5

15

6

9

18

Top 2 Box Middle Box Bot 2 Box

PERFORMANCE (%)

Up-to-date/useful information

Precise forecast and recommendation

Friendly user/interesting research analysis

Accurate trading documentation

Sufficient knowledge

Good service

Business ethics/reliable/trustworthy

Modern technology

Well-known

Stability/Reliable

Facilitate services/activities

Convenient trading process

Information

Service

Organization

Marketing

Representative

By overall, up-to-date/useful information, friendly user/interesting research analysis, and precise forecast and recommendation are key focused areas for service improvement to build

overall satisfaction towards securities company.




Friendly user/interesting research

analysis

Precise forecast and

recommendation

Up-to-date/useful informationFacilitate services/activities



Good service


Modern technology

Stability/Reliable

Well-known

30.00

40.00

50.00

60.00

70.00

80.00

90.00

0.40 0.45 0.50 0.55 0.60 0.65 0.70

Derived Importance

% Top 2 Boxes (Satisfaction)

Organization

Marketing Representative

Service

Information

Base: Those who are Active Stock InvestorRef. Q51

Securities Company Need Gap Analysis – Total TO STRENGTHEN

TO IMPROVE

Information provided to investors is key quality dimension for differentiation strategy from competitors.




Friendly user/interesting

Research analysis


recommendation

Up-to-date/useful

informationFacilitate services/

activities

Convenient

trading process


Good service


Modern technology

Stability/Reliable

Well-known

30.00

40.00

50.00

60.00

70.00

80.00

90.00

0.40 0.45 0.50 0.55 0.60 0.65

Derived Importance


Securities Company Need Gap Analysis – GBKK TO STRENGTHEN

TO IMPROVE

Base: Those who are Active Stock Investor in GBKKRef. Q51

Organization


Service

Information

In addition, in GBKK, customer satisfaction towards organization aspect is needed to be strengthened.



Base: Those who are Active Stock Investor in UPCRef. Q51

Organization


Service

Information



research analysis


recommendation

Up-to-date/useful

information



Business ethics/

reliable/trustworthy

Good service


Modern technology

Stability/Reliable

Well-known

30.00

40.00

50.00

60.00

70.00

80.00

90.00

0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80

Derived Importance


TO STRENGTHEN

TO IMPROVE

Securities Company Need Gap Analysis – UPC

Sufficient knowledge of marketing representatives and facilitate service/activities that promote investment are also key focused areas for improvement in UPC.



Well-knownStability/Reliable

Modern technology


Good service

Business

ethics/reliable/trustworthy

Convenient

trading process


Up-to-date/useful

information


recommendation


research analysis

Accurate trading

documentation

30.00

40.00

50.00

60.00

70.00

80.00

90.00

0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70 0.75

Derived Importance


Base: Those who are Active Stock Investor: Top 5 securities companyRef. Q51

Securities Company Need Gap Analysis – Top 5

Organization


Service

InformationTO IMPROVE

TO STRENGTHEN



Accurate trading

documentation


research analysis


recommendation

Up-to-date/

useful informationFacilitate services/activities


Business

ethics/reliable/trustworthy

Good service


Modern technology

Stability/Reliable

Well-known

30.00

35.00

40.00

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

0.35 0.40 0.45 0.50 0.55 0.60 0.65

Derived Importance


Base: Those who are Active Stock Investor: The rest securities companyRef. Q51

Securities Company Need Gap Analysis – The rest

Organization


Service

Information

TO IMPROVE

TO STRENGTHEN



Base: Those who are Active Stock InvestorRef. Q46/T46D

(310)

Service Experience towards

Securities Company

Service ExperienceService ExperienceService Experience

Base: Those who ever have problem when using service from Securities companyRef. Q47/T47D

Marketing rep. does not have enough competency

Buying / selling process is not fast & accurate

Not trust in online process

Inconsistency of service provided

Too distance/not convenient

Securities company working hour does not fit to available time

Trading service / document process is not precise

Cannot deliver service as promised

Incorrect investment analysis

Limited number of securities company’s branch

Marketing rep. does not provide investment advice

Other

Service Problem ExperiencedService Problem ExperiencedService Problem Experienced

29

14

12

11

5

5

5

2

2

1

1

13

(48)

Total(%)

23

21

15

8

4

2

6

2

0

0

0

19

(85) (37)

38

5

8

14

5

8

3

3

5

3

3

5

Short-term(E)(%)

Long-term(F)(%)

Investment Style

F

*Small Base

Marketing rep’s competency is noted as most service problem found. Inaccurate trading process is registered among short-term investors as the second most problem experienced.

Problem

27%No

problem

73%



Base: Those who are Active Stock InvestorRef. Q46/T46D

(310)

Service Experience towards

Securities Company

Service ExperienceService ExperienceService Experience

Base: Those who ever have problem when using service from Securities companyRef. Q47/T47D

Marketing rep. does not have enough competency

Buying / selling process is not fast & accurate

Not trust in online process

Inconsistency of service provided

Too distance/not convenient

Securities company working hour does not fit to available time

Trading service / document process is not precise

Cannot deliver service as promised

Incorrect investment analysis

Limited number of securities company’s branch

Marketing rep. does not provide investment advice

Other

Service Problem ExperiencedService Problem ExperiencedService Problem Experienced

29

14

12

11

5

5

5

2

2

1

1

13

(48)

Total(%)

23

21

15

8

4

2

6

2

0

0

0

19

(85) (37)

38

5

8

14

5

8

3

3

5

3

3

5

Short-term(E)(%)

Long-term(F)(%)

Investment Style

FGender

Male = 34% (N=62)

Age

35-49 yrs = 33% (N=40)

50 yrs and over = 32% (N=25)*

Monthly personal Income

100,000 baht and over = 40% (N=25)*

Occupation

PMEBS = 33% (N=40)

Business owner = 33% (N=18)*

Area

UPC = 33% (N=9)*

*Small Base

Problem

27%No

problem

73%

Marketing rep’s competency is noted as most service problem found. Inaccurate trading process is registered among short-term investors as the second most problem experienced.



Where You Compete AgainstWhere You Compete Against……Engage in strategy that will match up with competitors’ lack

of strength in relevant assets and competencies.



Interested

69%

Not

interested

31%


Providing more stock trading accessibility brings benefit to securities company in terms of investor base expansion, especially from mutual fund only investor, and younger adults

age 25-34 years.Interest toward Trading Stock at Bank

Total(%)


Potential Investor*

Not

Interested

72%

Interested

28%

Total(%)

* Source: Potential Investor and Corporate Image Survey 2007

(1,400)*

(411)

Investor

2 4%

78%

0%

2 0%

4 0%

6 0%

8 0%

10 0%

Trad ing st ock T rad ing st ock at bank

Mutual Fund only Investor

17%

4 1%

0%

2 0%

4 0%

6 0%

8 0%

10 0%

Trad ing st ock Trad ing st ock at bank

Potential Investor (25-34 Years)

Especially among

Especially among



Having securities company at convenient place will draw attention from half of stock investors, especially those who are living in UPC, female, and those who have monthly personal income less

than 29,999 baht.

Interested

48%

Not

interested

52%

Securities Company at

Convenient Place

Base: Active Stock Investor Ref. Q48/T48A

(310)

44%

59%

42%

62%

0%

20%

40%

60%

80%

100%

GBKK UPC Ma le Fema le

38%

52%53%

68%

0%

20%

40%

60%

80%

100%

Less t han

29 , 9 99

baht

3 0 , 0 00 -

4 9 , 99 9

baht

50 , 0 00 -

9 9 , 9 99

baht

10 0 , 0 00

baht and

ove r

Area Gender


6%

26%

50%

76%

0%

20%

40%

60%

80%

100%

Place of Interest

Base: Active Stock Investor who are interested Ref. Q49/T49A

(150)

Department

Store

Bank Office

building

Central office of

housing development



Stock trading facilitators and staff who provide closely guidance are the most two important ideal services for trading stock at bank.

Have facilitators for trading process

to make it simple and not complicate

Have staff to provide closely guidance

Have information provided at bank

Have brochures provided at bank

Have internet service

Ideal Service for

Trading Stock at Bank

44

35

16

2

1

Total(%)

(411)Base: All respondentsRef. Q38/T38A

Gender

Male = 48% (N=265)

Age

25-34 yrs = 51% (N=87)


100,000 baht and over = 50% (N=114)

Occupation

White collar = 49% (N=78)

Investor type

Stock only investor = 50% (N=122)

Savings in bank deposit

500,001-1,000,000 baht = 58% (N=67)

Gender

Female = 45% (N=146)


30,000-49,999 baht = 41% (N=91)

Occupation

Business owner = 41% (N=105)

Investor type

Mutual fund only investor = 44% (N=84)

Savings in bank deposit

50,001-100,000 baht = 58% (N=33)



Do not trust in security system of online trading

Not good at using computer and internet

Does not have one-on-one advisor

Do not have enough knowledge about online

trading

Not familiar to view trading transaction online

Is inconvenient because of requirement to open online account

Do not have enough time to follow up investment information

Other

Reason for Not Trading Online

26

21

13

11

8

8

6

4

Total(%)

(201)

25-34 years(J)(%)

35-49years(K)(%)

50 years and over

(L)(%)

Age

38

4

19

12

8

12

8

0

(26)*

30

16

15

10

6

10

6

6

(99)

16

34

9

13

12

5

7

4

(76)

Base: Those who buy stock 'via marketing representative only'Ref. Q53/T53A * Small base

L

K

65%19%

16%

Channel Used for Stock Trading

Via marketing

representative

only

Online stock

trading only

Via both marketing

representative and

online trading

(310)Base: Those who are Active Stock InvestorRef. Q52/T52A

Two-third of investors never trade stock on-line. Among younger adult (25-49 years), barriers for online trading are mainly from concern about security system.



21

13

9

9

8

8

8

5

3

1

Key Motivation for Online Trading

Lower online commission fee

Have training / seminar about online trading

Have comprehensive seminar on how to do investment analysis

Use the same trading account

Have e-learning explaining how to trade online

Have facilitated computer for online trading at trading room / bank

Able to use hi-speed internet at home

Have technical training on how to use computer for online trading

Have high security trading internet system

Have simulation game about online trading

Base: Those who buy stock 'via Marketing representative only'Ref. Q54/T54D

(201)

In addition, inducing investors to trade stock online should highlighted the message on the basis of lower trading cost.

65%19%

16%

Channel Used for Stock Trading

Via marketing

representative

only

Online stock

trading only

Via both marketing

representative and

online trading

(310)Base: Those who are Active Stock InvestorRef. Q52/T52A



Creating Sustainable Competitive AdvantageCreating Sustainable Competitive Advantage

Which Attribute You Compete • Information provided to investor • Capability of bank’s staff/sales staff

• Understand mutual fund investment policy• Communicate/advice to investor• Provide feedback on investor’s need

The Way to Compete• Product Strategy

• Communication Strategy, etc.

Basis of Competition• Investor base• Mutual funds with investment policy that serve investor’s need

• Reputation of mutual fund firm/distribution channels

• Number of distribution channels• Performance of mutual funds• Cooperation with distribution channels

Where You Compete Against

• Competitors/strategic group

Sustainable

Competitive

Advantage

Asset Management Firm



Basis of CompetitionBasis of Competition……What are your Assets & Competencies?



93

63

65

67

4093

47

48

59

4382

45

45

56

38

Current Owned

Trialists

Considerers

Awareness 93

56

57

64

45

GBKK

(%)

69%

98%

89%

Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1, T150A2-T150A3, T150A15-T150A18

Investment Pyramid : LTF/RMF

Total

AwareTotal

Spontaneous

Area

UPC

(%)


81

33

33

47

23

58%

100%

70%

Total

AwareTotal

Spontaneous

(291) (120)

Less than

29,999 baht

(%)

88

30

30

47

23

53%

100%

64%

Total

AwareTotal

Spontaneous

(57)

30,000 -

49,999 baht

(%)

50,000 –

99,999 baht

(%)

100,000 baht

and Over

(%)

68%

100%

80%

Total

AwareTotal

Spontaneous

(91)

63%

98%

81%

(138)

Total

AwareTotal

Spontaneous

72%

97%

97%

(114)

Total

AwareTotal

Spontaneous


LTF/RMF achieve weaker status in UPC. Room for improvement is also placing on how to induce investors with monthly personal income of 30,000 – less than 100,000 baht to consider investing in

this savings choice.



94

42

48

55

37

Current Owned

Trialists

Considerers

Awareness

Male

(%)

59%

88%

87%

Base: All respondentsRef. Q16a,b,c/Q19/Q22/T150A1, T150A8-T150A9, T150A24-T150A26

Investment Pyramid : Other Mutual Fund

Total

AwareTotal

Spontaneous

Gender

Female

(%)

(265)

91

55

62

68

45

75%

89%

91%

Total

AwareTotal

Spontaneous

(146)

Education

Diploma and less

(%)

Bachelor

(%)

Master or higher

(%)

86

32

32

39

21

45%

100%

82%

Total

AwareTotal

Spontaneous

(56)

93

41

48

55

40

59%

85%

87%

Total

AwareTotal

Spontaneous

(194)

96

58

66

72

45

75%

88%

92%

Total

AwareTotal

Spontaneous

(161)


Other mutual fund status is quite weak among male investors, and those with lower education level, especially those with diploma and less.



Challenges are also on inducing stock only investors to consider investing in mutual fund. Not attractive return is the most important barrier.

Investment Pyramid : Other mutual fund

Current Owned

Trialists

Considerers

Awareness 93

46

53

60

40

Total

AwareTotal

Spontaneous

65%

87%

88%

Reason for not consider

Investing in Other Mutual Fund

36

15

12

10

6

5

4

2

2

2

2

1





Not enough savings



Too risky


Have negative investment experiences

Too long pay back period


(84)Base: Stock only Investor who aware but not consider investing in other mutual fundRef. Q18a/T18A01

Other Mutual Fund(%)

89

0

6

20

21

Base: Stock only InvestorRef. Q16a,b,c/Q19/Q22/T150A29

(122)

Stock only

Investor

(%)

22%

0%

30%

Total

AwareTotal

Spontaneous

Investor

(%)




Most investors do not consider investing in ETF due to lack of information of this savings instrument.

36

4

4

9

4

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

ETF

(%)

25%

100%

44%


(411)

Reason for Not Consider Investing in ETF

(108)

Base: Those who aware but not consider investing in ETFRef. Q17c/T17A03

AidedAidedAided

30

17

12

12

6

6

6

4

2

1

1





Not enough savings




Too risky


Use a lot of money to invest

MostImportant

(%)

Investment Pyramid: ETF



On average, fund investors hold about 3 mutual funds.

Mutual Fund Purchase Practices

No. of Mutual Fund InvestNo. of Mutual Fund InvestTotal(%)

Base: Those who are Active Mutual Fund Investor

Ref. Q76/T76E

Average no. of mutual fund: 3.31

(257)

2-3 mutual

funds

36%

1 mutual fund

17% More than 5

mutual funds

24%

4-5 mutual

funds

23%



020

2863

65

36

100

3715 8

00

28

0000%

20%

40%

60%

80%

100%

1 company

2-3 companies

4-5 companies

More than 5

companies

No. of Fund CompanyNo. of Fund Company

1 mutual fund%

2-3 mutual funds%

4-5 mutual funds%

Over 5 mutualfunds%

(43) (93) (60) (61)

Mutual fund investors tend to diversify their investment in more fund firms when they invest in more number of mutual funds. Even though they invest in one type of mutual fund. Building brand loyalty

is needed to strengthen market share.Mutual Fund Purchase Practices

Base: Those who are Active Mutual Fund InvestorRef. Q76/T76E

18

74

26

56

22

59

37

4 40

40

53719

19

32

44

5 00

0%

20%

40%

60%

80%

100%

1 company

2-3 companies

4-5 companies

More than 5

companies

No. of Fund CompanyNo. of Fund Company 1 Type%

2 Types %

3 Types%

4 Types%

5 Types%

(78) (80) (43) (25)* (23)** Small Base

Base: Those who are Active Mutual Fund InvestorRef. Q77/T77E



Which Attribute You CompeteWhich Attribute You Compete……This involves attributes valued by the market.



AttributeAttribute

71

48

67

68

80

87

69

40

29

28

19

11

28

25

3

*

3

11

2

1

4

Top 2 Box Middle Box Bot 2 Box

PERFORMANCE (%)

Accurate and complete trading documentation

Sufficient Information for making investment decision

Many/convenient trading channels

Has variety types of mutual fund

Good investment policy

Stability/Reliable

Reliable fund manager

Information

Service

Organization

Sufficient information provided to investors for making investment decision is key focused area for improvement to drive investors’ satisfaction.

Mutual Fund Company Overall Impact VS Performance-- KEY ATTRIBUTES --



Effective

communication

is needed

Accurate and complete

trading documentation

Sufficient Information for making

Investment decision

Many/convenient trading channelsHas variety types

of mutual fund



Stability/Reliable

40.00

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70

Derived Importance


Organization

Product & Service

Information

Base: Those who are Active Mutual Fund InvestorRef. Q80

TO STRENGTHEN

TO IMPROVE

Mutual Fund Company Need Gap Analysis – Total

Among mutual fund investor, sufficient information for making investment decision is the most important unmet need.



Organization

Product & Service

Information

Accurate and complete

trading documentation


Investment decision

Many/convenient trading channelsHas variety types of

mutual fund



Stability/Reliable

40.00

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65 0.70

Derived Importance


Mutual Fund Company Need Gap Analysis – GBKK


TO STRENGTHEN

TO IMPROVE

In GBKK, mutual fund investors place importance on convenience, hence increase in trading channels is another area for improvement.




Organization

Product & Service

Information

Accurate and complete trading

documentation


Investment decision

Many/convenient trading channels

Has variety types of mutual fund



Stability/Reliable

40.00

50.00

60.00

70.00

80.00

90.00

100.00

0.30 0.35 0.40 0.45 0.50 0.55 0.60 0.65

Derived Importance


Mutual Fund Company Need Gap Analysis – UPC TO STRENGTHEN

TO IMPROVE

Sufficient information provided to investors is the most important area for improvement to drive investors satisfaction in UPC.



29

16

16

14

8

25

14

16

18

12

Building awareness towards the availability of products as well as building capability of bank’s staff/sales staff in providing investment advice is needed to expand/strengthen investor base.

Barrier for Mutual Fund Trading

Lack of knowledge to select mutual fund

Inconvenient distribution channel

Mutual fund representative does not

understand about the product

Lack of information

Limited number of mutual funds

Base: Those who are Active Mutual Fund InvestorRef. Q85T85A

(257) (77)

17

24

17

13

9

(82)

Total(%)


Less than 29,999 baht

(P)(%)

-30,000 49,999 baht

(Q)(%)

–50,000 99,999 baht

(R)(%)

100,000 bahtand Over

(S)(%)

36

11

21

11

9

(53)

58

8

11

14

0

(36)



45

37

36

32

30

26

20

14

14

5

Bank staff’s recommendation

Self-experience

Friend’s recommendation

Fund prospectus

Newspapers

Fund company’s staff recommendation

Brokerage research report

Stock Exchange of Thailand

Brokerage firm's staff’s recommendation

Internet

Base: Those who are Active Mutual Fund InvestorRef. Q84a/T84A01,T84E01

(257)

Total(%)

Influenced Sources of Information

Bank staff’s recommendation is most used information source of information for mutual fund selection. About 42% of mutual fund investors need information on advice basis.

Base: Those who are Active Mutual Fund InvestorRef. Q82/T82E,Q84b/T84E02

Most Influence Source of Information

23%

42%

35%

Advice

Base

Self

ExperienceWritten

Material



26

25

19

18

2

2

2

2

2

1

1

Investment policy and image or brand building are crucial part of investor base expansion strategy. Stability/reliability of mutual fund firm or distribution channel is ‘signal of quality’ among investors

who rely on advice based information.

First Criteria in Choosing Mutual Fund

Investment policy and investment style

Stability and reliability of mutual fund firm

Stability and reliability of mutual fund distribution channel

Historical performance

Provide high return

Reputation and awards achievement of mutual fund firm

Service received

Promotion i.e. free gift

Gain tax benefits

Mutual fund expense ratio

Low investment risk

(257)Base: Those who are Active Mutual Fund InvestorRef. Q78a/T78E01

Total(%)

Most Influence Source of Information

(89) (58)

Written material (H)(%)

Advicebase(G)(%)

Self experience

(J)(%)

17

30

31

12

3

2

2

0

1

1

1

38

19

7

26

0

1

0

3

2

1

2

26

26

17

14

5

2

3

2

2

2

0

(108)

HJ H

G

G

H



Types of financial information needed is varied among investor types. Stock investors prefer individual research type of information like newsletter, whereas mutual fund only investors prefer newsletter, and advisory staff to explain information. In contrary, investors who invest in both stock & mutual fund prefer training/seminar.

Types of Financial Information Needed


(411)

Total(%)

28

14

2

25

19

6

2

Advice Based (Any)Advice Based (Any)

Training/Seminar

Advisory staff

Booth

Individual Research (Any)Individual Research (Any)

Newsletter

Article

Documentary

Short story

35

11

2

21

20

7

1

(122) (84) (205)

Stock Only(F)(%)


Both Stock & Mutual Fund

(H)(%)

Investor Type

22

14

2

32

18

3

5

23

24

1

25

19

8

0

FG

H

H

G



Where You Compete AgainstWhere You Compete Against……Engage in strategy that will match up with competitors’ lack

of strength in relevant assets and competencies.



Buying Financial Product at Bank

Buying ExperienceBuying ExperienceBuying Experience

Base: Stock only InvestorsRef. Q33/T33A

(122)

No

41%Yes

59%

Stock only Investor(%)

Base: Stock only Investors who ever bought financial product at bankRef. Q34/T34A

Financial Product ever BoughtFinancial Product ever BoughtFinancial Product ever Bought

19

1

67

36

26

0

20

40

60

80

100

Other

mutual fund

LTF/RMF IPO stock Bonds Insurance

%

(72)

Approach to stock only investors, untapped potential target, by leveraging bank branch channels to expand investor base.



Key Trigger for Buying Financial Product at Bank

Convenient transportation

Have confident in the stability of bank

Have staff to provide suggestion/information

Have various type of financial products

Many branches are available

High return

Others


Total(%)

StockOnly (F)(%)


Both Stock and Mutual Fund

(H)(%)

31

27

18

8

7

5

2

28

25

23

9

5

7

2

24

32

23

8

7

4

2

37

26

14

8

8

4

1

(411) (122) (84) (205)

H

Selling proposition of financial products at bank consists of ‘convenience’, ‘stability’, and ‘face-to-face information provided’.



Financial Products Traded in Capital Market

Image/Investors’ Attitude• Capital Market

• SET

Securities Companies &

Asset Management Firms

Investors

Capital

Market

Participation

Investor MarketingInvestor Marketing



Top 2 boxesStrongly agree and somewhat agree

Bottom 2 boxesStrongly disagree and somewhat disagree

6

3

8

14

6

44

41

43

50

41

11

9

9

12

5

33

13

12

13

14

020406080100

%

87

84

77

67

75

42

41

39

35

31

67

67

69

59

76

43

71

71

70

48

0 20 40 60 80 100%

Investor

Potential Investor*


Investors have better perception towards investment in Capital market than that of potential investors, except negative attitude towards manipulating stock.

Is one of saving choices

Offer better return than bank deposit

Is an important fund raising source like banking sector

Is principal pillar of an economy and financial sector of Thailand

There are news about manipulating stock so often

Stock fall or rise has no effect on people who are not investor

Stock market is only suitable for rich people

Stock Market is a kind of gambling

Is too difficult required knowledge/deep skill

Stock market is channel for avoiding taxes

Base: All respondents (Potential Investor : n=1,400), (Investor: n=411)Ref. Q117/T117Ar1-T117AR10

Positive AttitudePositive Attitude

Negative AttitudeNegative Attitude

Attitude toward Investment in Capital Market



Top 2 boxesStrongly agree and somewhat agree

Bottom 2 boxesStrongly disagree and somewhat disagree

6

3

8

14

6

43

43

44

55

45

6

4

8

14

6

46

33

42

33

26

020406080100

%

89

85

79

69

76

43

39

38

30

30

82

80

71

57

70

38

49

44

52

33

0 20 40 60 80 100%

Is one of saving choices

Offer better return than bank deposit

Is an important fund raising source like banking sector

Is principal pillar of an economy and financial sector of Thailand

There are news about manipulating stock so often

Stock fall or rise has no effect on people who are not investor

Stock Market is only suitable for rich people

Stock Market is a kind of gambling

Is too difficult required knowledge/deep skill

Stock market is channel for avoiding taxes

Base: (Stock Investor : n=327), (Mutual Fund Only Investor: n=84)Ref. Q117/T117Ar1-T117AR10

Positive AttitudePositive Attitude

Negative AttitudeNegative Attitude

Attitude toward Investment in Capital Market

Stock Investor

Mutual Fund OnlyInvestor

Inducing ‘mutual fund only investors’ to invest in stock/bond market needs to justify their negative attitude that capital market is only for rich people. Knowledge support and

closely guidance is needed to support their investment decision.



30.00

35.00

40.00

45.00

50.00

55.00

60.00

65.00

70.00

75.00

80.00

0.19 0.24 0.29 0.34 0.39 0.44 0.49 0.54 0.59

Derived Importance


Give precedence to investor

Understand investors need

Concern on investor

benefits & assist investor

Build investor relationship

Always move forward with new development Stability/Reliable

Regulate/monitor stock market well

Have clear direction

Modern

Being international

Professional management

Introduce appropriate rules to facilitate investment

Collaborate related parties to promote investment

Organization with efficient workforce

Being government agency

Able to disseminate knowledge to

the masses

Provide useful trainings/seminars

Improve investor understanding

and attitude

High standard and transparency in accepting new listed company

Contain mostly investment grade stock

Introduce manysecurity instruments

Efficient management with

modern technology

Have sufficient & suitable trade channels

Carry out many responsible

Social activities

Give accurate &

timely information

Provided easy to understand

information

Everybody able to reach information as equal

Organization

Products and Services

Investor

Information

Social Activities

Knowledge

SET Image: Need Gap Analysis

TO IMPROVE

TO STRENGTHEN

Key focused areas for SET image building are in aspects of investor, organization, and products & services

factors. Linkage between SET improvement areas and perception towards manipulating stock in capital market should be reviewed.



Among potential investors, each of financial assets in capital market has weak status in terms of awareness and consideration. Awareness building in terms of wealth accumulation through

capital market should be strengthened.

71

4

6

14

10

Current Owned

Trialists

Considerers

Awareness

Total

AwareTotal

Spontaneous

Stock

(%)

20%

67%

43%

22

3

3

6

1

Total

AwareTotal

Spontaneous

LTF/RMF

(%)

27%

100%

50%

39

4

5

10

4

Total

AwareTotal

Spontaneous

Other

Mutual Fund

(%)

26%

80%

50%

26

1

1

4

2

Total

AwareTotal

Spontaneous

Corporate

Bonds

(%)

15%

100%

25%

8

1

*

*

*

Derivatives

(%)

13%

100%

50%

Total

AwareTotal

Spontaneous

8

0

0

*

*

Total

AwareTotal

Spontaneous

Foreign

Bonds/Stock

(%)

6%

0%

0%

Base: All respondentsRef. Q10a,b,c/Q13,/Q16a/T96A

(1,400) * = Conversion ratio at each stage

Investment Pyramid : Product Traded in capital market: Potential Investors *

XX%* Source: Potential Investor and Corporate Image Survey 2007



Foreign Bond/stock

Derivatives

Corporate Bond Other Mutual Fund

LTF/RMF

ETF

Stock

Foreign Currency

Land/Property/CondominiumGold

Government Bond

Life Insurance Cooperative share

Saving Deposit

1.00

1.50

2.00

2.50

3.00

3.50

4.00

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

Risk

Foreign Bond/stockDerivatives

Corporate BondOther Mutual Fund

LTF/RMF

Stock

Foreign Currency

Land/Property/Condominium

Gold

Government Bond

Life Insurance

Cooperative share

Saving Deposit

1.00

1.50

2.00

2.50

3.00

3.50

4.00

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50

Risk

Return

Perceived Risk Level of

Financial Assets

Education about risk & return level should be provided to reduce ‘over fear’ as well as ‘motivating’potential investors to participate in capital market.

Potential Investor Investor



Internet is a major channel for financial information among investors. However, bank is key channel of

receiving information among mutual fund only investors.

Main Channel of Receiving Financial Information

TV

Newspaper

Internet

Radio

Others

65

24

5

2

2

Potential Investor* %

(1,400)*Base: All respondentsRef. Q9a/T9.1A

37

27

21

9

2

1

1

1

1

53

15

16

10

2

1

0

2

0

Internet

Newspaper

TV

Bank

Email

Radio

Brochure/Leaflet

Family members/friends

Others


(411) (87)

41

29

18

7

3

1

1

1

1

(195)

20

31

29

11

2

3

2

1

2

(129)

38

28

30

0

2

1

0

0

0

23

21

20

27

0

1

4

2

0

42

28

16

6

3

2

*

1

1

(122) (84) (205)

25-34 years(J)(%)

35-49years(K)(%)

50 years and over(L)(%)

Age

Stockonly(F)(%)

Mutual Fund Only

(G)(%)

Investor%

Both Stock & MutualFund(H)(%)

Investor Type

L L

J J

JK

G G

H

FH F

FH





Increasing

New investor

to participate in

capital market

Increasing

Share of wallet

of financial


Increasing

Adoption

of financial




Increasing

Adoptionof financial



Increasing

New investor

to participate in

capital market

Increasing

Share of walletof financial


• Expand investor base to Mutual Fund only Investors- Convincing investors to

diversify from bank based portfolio choices to stock

- Recommend on long-term investment style

Securities Company Asset Management Firm SET

Achieving Product Saliency & Providing Product Relevance

Promoting Investment Diversification

• Expand investor base to Stock only Investors- Proactive approach in providing information/ suggestion to these investors at trade channels

• Increasing Product Exposure- Promoting product

awareness and knowledge about new products i.e. ETF among investors

Driving quality dimensions & Reducing Undesirable Purchase Practices

• Information Excellence- Up-to-date information

- Forecast & Recommendation- Research analysis

• Service Excellence- Marketing competency

• Branding- Mutual fund firm &

distribution channel• Information Excellence- Sufficient information on how to select mutual fund at customer touch points i.e. staff's advice

• Justify unmet need among investors- Regulate/monitor the

market- Understanding investors- Accurate/timely Information- Standard &Transparency in

accepting listed Company

• Increasing trading channels - Bank

- Convenient place i.e. department store

• Ensuring ideal service is delivered

• Effective Communication- Internal communication to

ensure staff’s understanding towards mutual funds- Sufficient information on how

to select mutual fund at customer touch points i.e. staff’s advice

• Improve understanding towards Capital Market among Potential Investor*

- Educate on savings choices with small investment

- Providing easy to understand information

* Refer to Potential Investor and Corporate Image Survey 2007, among middle income class (minimum monthly personal income of 20,000 baht or higher)

investor and corporate image survey presentation · base: those who are stock investor ref....

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