Our panel includes:
Ellen Roseman (ER):
Business Columnist, The Toronto Star
Jacqueline Thorpe (JT):
Toronto Bureau Chief, Bloomberg News
Randy Cass (RC):
Anchor, Market Sense, BNN
Melissa Shin (MS):
Deputy Editor, Advisor Group
Caroline Cakebread (CC):
Editor, Canadian Investment Review; Money Expert, Chatelaine magazine; Editor, The Analyst

In a recent CFA Institute investor poll, the media ranked as the most popular source of investor education information (56 percent). Our own CFA Society Toronto web poll confirmed similar results, with over 80 percent citing the media as their first source of investing information. Although print and TV might still dominate the delivery channel, social media, online sources, and blogs have grown very quickly, changing the traditional landscapes investors have historically relied upon. Irrespective of the channel, however, the fundamentals of business- and investor-based news, such as objectivity, depth of knowledge, trust, and “spin” have not changed. With that in mind, CFA Society Toronto brought together an esteemed panel of media practitioners to discuss these issues and the challenges media face on a daily basis in creating value-added relevant content.

As media channels have expanded, one question always remains, and that is one of objectivity and personal bias. How do media professionals maintain the right balance?

JT: At Bloomberg News, it is simple and formulaic. We have a set of rules and guidelines that steer our team. They include making sure that stories are balanced. For example, two bullish comments require one bearish comment to provide a counterpoint. With corporate stories, management gets the opportunity to reply, and like equity analysts, for example, our team cannot hold equity positions in sectors and areas they cover. In addition, we have strict gift policies.

MS: At Advisor Group, which has a more specialized target market, we ensure that diversity is in place with respect to sources and influence for every story. We have an independent advisory board that is also diverse by geography and gender. In addition, we focus on making sure our practitioners have the right education and are provided with ongoing education. Put simply, objectivity can’t come from ignorance.

It is interesting to note that in most cases, traditional media would have a more robust “check and balance” process in place, versus some of the newer blogs and chat rooms. As always, investors have to question the sources they use and make sure that those potential inherent conflicts and biases are either removed or minimized. Objectivity can lead to what is referred as “boring news,” and media are driven to increase circulation, subscriptions, viewership, and “clicks.” Can the two co-exist and blossom?

ER: That is one of the largest challenges as we produce content—it is simply difficult to get people excited about financial news and investing. At The Toronto Star, investing stories would always be the least viewed on our Moneyville website, which focused on more mainstream topics such as mortgages and debt management. Unfortunately, people are more interested in “bad” news than good news.

CC: Depending on the channel, content complexity is an issue, and it is simply hard to make information exciting in the mass media channel. Survey news can drive initial discussions, but even in those cases, questions surrounding relevance come into play. The writer’s or the interviewer’s depth of knowledge can really make the difference. Are they able to ask questions about the data and look out for bias? And can they add the necessary context to ensure it’s relevant for readers? This is important across media channels, whether you’re writing for a consumer audience or for pension funds.

JT: Very few press releases create a full story. They might underpin the idea, but a story then needs to be “talked up.”

And that assumes those press releases are clear and transparent and not burying important details or being self-promoting. So that brings in the idea of cheerleaders or doomsayers versus the potential of media thought leaders in order to stimulate end-user demand. How do you view that playing field?

RC: The idea of being a cheerleader or doomsayer is much more of a U.S. phenomenon. Canadian practitioners are much more balanced and thoughtful in their approach and will offer opinions when they are well grounded.

MS: Editors/producers play a key role here in handing out the assignments to the right people and then vetting the stories. That creates balance from the outset.

ER: Expert predictions, for example, are a dime a dozen, and so one really can’t put credence in them for a story. For example, creation of thought leaders can come from being a columnist, to authoring specialty books, and then engaging in industry discussions to build that leadership. But even then, conflicts of interest need to be looked at.

RC: Credible thought leaders are possible. If one has the experience and background, the confidence and expertise can come through and support the credibility within the discussion. And that is key—having the discussion where the reader or viewer becomes engaged, because it affects them.

MS: At Advisor Group, we try to focus our readers on process and on avoiding either end of the positive/negative spectrum. Our efforts are put into coaching our clients to remain even-keeled and not fall in that trap.

Let’s talk about the proliferation of social media as an information dissemination or research tool.

JT: Twitter is a game changer. Here is a great example on a no-names basis: Recently, an announcement was released through Twitter at 12.49 p.m., while the same announcement only came over traditional public newswires at 3.39 p.m. The speed at which things move is very different, and credible and established news sources face a challenge in confirming story authenticity. It is interesting that traditional news sources check for credibility, yet social media channels seem to have automatic buy-in.

ER: And don’t forget the debate surrounding paid advertising versus sponsored advertising. Transparency is being blurred. We are all looking at multiple platforms to engage in this new space, which in itself adds time constraints and puts further pressure on costs in delivering the story.

CC: Financial bloggers have also become a major force in the media landscape. Some of them are highly reputable and have become trusted sources of news and information in their own right.

So in a few final words, what would you say to DIY investors, financial practitioners, and corporate Canada C-Suites?

MS: Stay focused on your decision-making process and keep asking questions.

ER: Business section reporting can be boring at times, so try to create a story that has some intensity and brings in the human element. That is how people can learn and stay engaged.

JT: To the C-Suite, I would suggest making sure that the communication channels always remain open to get your message across.

CC: Whatever the media channel, always try to get the reader to ask questions and look beyond the surface.

RC: Always distill the story for the user to become engaged. It is that engagement that you want to enhance.

RS: We live in an age of information overload and “short-termism” with respect to financial news. Instant analysis is required for every data point when in fact better and more relevant information can be found in the details, not in the headlines. Data collection across distribution channels is not only a growing industry but has even morphed into an investment strategy. As such, the onus is upon all of us to make sure we are focused on what is important to us, to our process, and to our clients through credible sources and not get lost in the minutiae of the moment.