Interesting new research out this week on Financial Advisors and their use of New Media. Unsurprisingly it shows that a growing use of the major social networks both for research and marketing. As referenced on the Socialware Blog, highlights of the study from American Century Investments include:

• 44% of advisors who use social media for business or business and
  personal use agree that social media is an emerging trend with
  significant potential for businesses like theirs.
• 73% of the participants have a profile or account with one or more
  of the social media types mentioned (i.e. Facebook and LinkedIn).
• Of those who use social media for business purposes, almost
  one-fifth (19%) do so daily – either once a day or multiple times a day.

Our experience at Covestor has been very similar. Advisors confidence marketing themselves online is growing, and they are increasingly looking for great tools to build their profiles. As clients also begin to shop online for the best advisory services those without a web presence risk being left behind.

Of the 23 models now available on the site from RIAs, ranging from the small to the very large, almost all have profiles across social networks led by their Covestor profiles. A number are notably already highly connected:

• Navellier: Company blog, Twitter and Facebook
• Epic Advisors: Blog and Seeking Alpha
• Braver Wealth: Seeking Alpha
  
• Sipco: Facebook
  
• YH & C Investments: Seeking Alpha and LinkedIn

This trend shows no sign of abating. Given the social networking tools and transparency on offer, platforms like Covestor are playing an increasingly significant role for Investment Managers in managing and growing their businesses.