What do advisers want from Reita Extract from indepth telephone interviews Conducted by NMG June 200

1
What do advisers want from Reita?Extract from
in-depth telephone interviewsConducted by
NMGJune 2006
2
Reitas Role
Research Findings
The role of the organisation was read out to
IFAs for comment, to understand whether the key
messages resonated with the audience

• We will act as the voice of the UK REITs
  industry. Our aim is to inform you of the latest
  thinking and opportunities in the property
  investment market by providing straightforward
  access to deep and expert understanding of all
  property investment related matters
• We will help you to improve your practical
  knowledge of the range of property investment
  options in order to support you in making better,
  more informed and more successful investment
  decisions and provide more informed advice to
  your clients
• We save you time and costs in keeping you up to
  date through a choice of online and offline
  knowledge resources, produced by leading experts.
  We keep you connected to the property industry
  and investment professionals through regular
  newsletters, seminars and online events such as
  webcasts. We help you to find the right advice
  quickly and efficiently, if you are seeking
  professional help with managing your clients
  money

3
Reitas Role - Comments
In theory I like the statement, if it saves time
for me and improved things for my client then I
welcome it, but anyone can make a statement that
doesnt really mean anything. They need to make
sure they come up with the goods
would say this sort of thing but reality is
different. Usually the stuff IFAs get is not
useful
Says all the right things if kept up to date.
Its a positive message
Sounds good as an advisor you cannot keep up to
date with everything so a website /company which
provides up to date information will be very
useful. The essence behind the statement is
correct
Very long statement. I wont argue with the
sentiments. I will be very interested to see how
they will achieve it all
Long winded. As a resource - then what theyre
saying would probably be useful coming from an
organisation that is promoting REITs and not
necessarily other types of property investment
independence could be an issue
Fine in theory just another grandiose statement
that doesnt work in practice a lot of companies
have these bold statements
4
Website Content
Research Findings
Spontaneously IFAs are able to mention a number
of areas that they would like further information
on, from the basics, to more detailed
product/provider information

• Spontaneously, IFAs name a number of areas that
  they would like covered on the website. Areas
  they would like further information on include
• Basic information on the definition of a REIT (to
  be consumer friendly to be passed on)
• Educational material on REITS
• Risk profiles / Levels of risk
• Product information of available products in the
  market (overseas UK)
• Historical data on performance (not only of REIT
  but also on commercial property market for the
  last 1-3-5 years with benchmarks)
• List of product providers
• Product comparisons
• Track record of managers/management team
• Fund details
• Tax implications
• Financial strength of product providers

5
Website Content - Comments
Anything to understand the product easily and is
also understandable to the client. Needs to be in
a format that is easily readable for both clients
and myself. Also important that any information
can be used with the client
Comparison information, performance comparisons
to produce evidence of research to justify the
advice given to the client
Definition of what a REIT is. A reminder. Access
to performance charts
The big thing for me is the strength of the
companies, do they have financial back-up
support? Whats their past performance. What do
they think will be their position going forward
Balance technical information that is useful to
advisers with simple information to give to my
clients like 10 things you need to know about
REITs
6
Website Content
Research Findings
In terms of content, regulation, Information
guides and sales guides are favoured areas by
IFAs
2.6
3.6
3.5
3.3
3.9
3.6
3.8
3.7
Extremely useful
Very useful

• Weighted averages used (5 very useful, 1 not
  at all useful)
• Consumer research is not seen as being
  particularly useful, however, news on regulation,
  QA info guides and sales guides, prove to be the
  most useful sources of information

Quite useful
Not very useful
Not at all useful
Consumer Research
Market Analysis
New Funds
Company Devpts
Info Guides
Sales Guides
Taxation
Regulation
Number of Mentions
Base All respondents 14
7
Website Content Market developments
Research Findings
Overall, IFAs require information on market
developments and fund providers monthly via e-mail

• In terms of market developments, areas IFAs
  would like information on include
• Industry developments including
  taxation/regulation 14 mentions (all
  respondents)
• Company developments including new funds 13
  mentions
• Global opportunities in property investment 12
  mentions
• The groups development was of less interest than
  the other areas mentioned with 8 mentions, mainly
  because it didnt affect their day-to-day roles
• In terms of receiving information in these areas,
  IFAs indicate preferences for
• Email with links to view articles
• PDF Newsletters
• E-mail newsletters (with all news contained in
  the e-mail)
• E-mail allows IFAs to be able to send articles
  that may be of interest to their clients whilst
  PDF documents enable them to be able to view
  articles in hard copy and to keep investment
  decision research material on file
• There was no interest by any of the respondents
  in Webcasts or Podcasts
• In terms of frequency, most IFAs only required
  updates on a monthly basis (8 mentions). Others
  ranged in response from daily to quarterly and
  some only requiring information when they felt
  there was something new to learn/be updated on

8
Website Content Provider Information
Research Findings
As this is a new area, IFAs are keen to have
reassurance on the providers prior to
recommending them to their clients

• When asked spontaneously what provider
  information was required, IFAs mentioned a
  number of areas that they would like information
  on
• Financial strength of provider
• Company History
• Information on the fund, e.g. size, returns,
  cost, charges, breakdown of fund
• Track record of the fund or of the fund manager
• Performance data / ongoing performance
• Risk factors/profiles
• When prompted, other areas that were of interest
  included
• Geographical location/coverage 14 mentions
• Having all information in 1 place including a
  directory of providers 14 mentions
• Comparisons of funds / shares 14 mentions
• Fund prices 12 mentions
• Research analyst reports 10 mentions
• Report and accounts 2 mentions
• In terms of how they would like to receive this
  information, web pages they can print out or
  PDFs they can download and print out are
  preferred options

9
Business Development
Research Findings
Overall, workshops by providers, sales aids such
as case studies and initial presentations about
the industry would be most useful to IFAs
Number of Mentions
Extremely useful

• When asked spontaneously what other support the
  organisation should provide, respondents
  mentioned risk profiles, generic information on
  REITs/Fact sheets and comparison information of
  REITs against one another and against other types
  of investment

Quite useful
Of no interest
Generic Sales aids
Workshops by providers
Presentations about the industry
Present to Prospective Customers through IFAP
Lead generation packs
Base All respondents 14
10
Training Programme
Research Findings
The majority of IFAs questioned would be
interested in undertaking a REITs training course

• Of the 14 respondents interviewed, only 4 did not
  wish to take part in a REITs training course
  which would contribute to achieving CPD points
• Main reasons for wishing to undertake the course
  surrounded attaining a real understanding of the
  product. Most have some knowledge of REITs
  through the press, however, more detailed
  information is sought
• For most, the preferred method of undertaking the
  course would be face-to-face with workshops or
  seminars. A few opted to undertake a
  correspondence course or an online course

• Overall, the ability to download material to read
  offline is essential
• Polarised appeal for web chats with programme
  leaders or peers undertaking the course
• In terms of informing clients of accreditation,
  IFAs mentioned having a certificate or
  additional letters after their name to use on
  business cards etc.

Number of Mentions
Lesson online
Reminders to return the programme
Download material to read offline
Forum with others to discuss issues
Progress Chart
Emails taking through process
Web chat with Programme leader
Base All respondents 14
11
Launch Event /1
Research Findings
Whilst IFAs have some knowledge of REITs, they
would like more information on both basic
principles and also more detailed information

• IFAs were asked what information they would like
  relating to REITs and property investment at the
  launch event.
• Essentially, IFAs require information on the
  product, the market, and the providers.
  Spontaneously they mentioned the following
• An introduction to the basics of REITs such as a
  beginners guide
• Generic information on the products
• How they fit into a clients portfolio
• Advantages and disadvantages of having a REIT
• Displaying a genuine explanation of the
  opportunity for investors
• Details of the funds how theyre put together,
  costing and charges, onshore/offshore, part of an
  ISA/Pension etc
• Taxation and legislation issues
• General information on the groups role
• Indication of a commitment to the market
• Access to companies who provide the product

12
Launch Event /2
Research Findings
When prompted, there are a number of areas IFAs
would like addressed at the event, including
learning from property experts and from other
markets where REITs have been in existence longer
New industry developments
Technical info on regulation/legislation
Insight from recognised property experts
Insight from other territories where REITs have
been in existence longer
Open forums for discussion
Industry Opportunities
Practical examples of successful campaigns
Number of Mentions
Base All respondents 14
13
Next Steps

• We would value your contribution to and comments
  on this research.
• What do you want Reita to do and what
  information should we provide that would be most
  valuable to you?
• Email info_at_reita.org
• Tel [phone]