Client Language
A survey by LMSR and Invesco Van Kampen Consulting shows what words are preferred by investors when describing their current situation and advisors.
|
Phrases to Lose |
Phrases to Use |
|
For ALL your investment needs |
For a PORTION of your investment needs |
|
Act NOW |
Invest for the LONG-TERM |
|
INSTITUTIONAL management |
KNOWLEDGEABLE management |
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Out live your money |
Have enough money for as long as you live |
|
A HOLISTIC investment |
A COMPREHENSIVE investment |
|
Cautious or Optimistic |
Cautious Optimism |
Which Words Work Best With Investors
|
57% Stocks 43% Equities |
27% Tax Deferred 25% Tax Exempt or Tax Free |
|
62% Companies 38% Securities |
82% Money markets 18% Cash |
|
55% Bonds 45% Fixed income |
56% Dividends 44% Income |
|
82% Diversified 18% Asset allocation |
78% Portfolios 22% Trusts |
|
65% Diversified 35% Balanced |
|
Words That Resonate With Investors When Communicating About…
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Portfolio managers 23% knowledgeable 17% accountable 16% experienced |
Moderate investments 28% diversified 20% balanced 20% managed risk |
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Equity funds 78% securities 22% unique |
Conservative investments 20% reliable 17% dependable 13% time tested |
|
Aggressive investments 38% innovative 21% alternative 9% unique |
Cash investments 38% personal reserve 27% emergency 9% rainy day |
Active vs. Passive
% of Mutual Fund Managers Who Outperform The S&P 500
[bull and bear markets: 1971-2011]
|
Bull [Jan. 1971 to Dec. 1972] 42% |
Bull [Nov. 1990 to June 1998] 25% |
|
Bear [Jan. 1973 to Sept. 1974] 44% |
Bear [July 1998 to Aug. 1998] 30% |
|
Bull [Oct. 1974 to Nov. 1980] 43% |
Bull [Sept. 1998 to Aug. 2000] 50% |
|
Bear [Dec. 1980 to July 1982] 73% |
Bear [Sept. 2000 to Feb. 2003] 50% |
|
Bull [Aug. 1982 to Aug. 1987] 20% |
Bull [Mar. 2003 to Oct. 2007] 48% |
|
Bear [Sept. 1987 to Nov. 1987] 60% |
Bear [Nov. 2007 to Feb. 2009] 43% |
|
Bull [Dec. 1987 to May 1990] 35% |
Bull [Mar. 2009 to Dec. 2011] 40% |
|
Bear [June 1990 to Oct. 1990] 48% |
Average [1971-2011] 43.4% |