Funds friends like

When it comes to the most-effective use of social media by asset management companies, The Vanguard Group Inc. and Fidelity Investments probably can claim more “likes” than any of their peers.

The fund giants are the top-ranked companies in kasina LLC’s Social Media Index, which rated asset management firms on audience engagement, how well they integrate social media into their communications, and their success in developing new and useful content.

In third place is TIAA-CREF, followed by iShares and The Hartford Financial Services Group Inc. The five firms scored between 77 and 80 points, compared with the average asset manager’s score of 56.

Asset management firms are rushing to use social media in some shape or form, the kasina study found. While only 48% of managers were using social-media sites last year, more than 80% of firms are doing so now.

“However, the vast majority of firms are just dipping their toes in the water,” said Lee Kowarski, a principal at kasina. As a result, the quality of firms’ use of social-media sites varies widely, he said.

For example, the leading firms use social media to have a dialogue with investors, he said. Vanguard, for instance, asks questions and responds to followers through Twitter and Facebook.

“It’s not surprising that the top firms have their roots in the direct-sales and retail-asset-management business,” Mr. Kowarski said. “Intermediary-sold companies really have to catch up and learn how to properly engage with a mass audience.”

Too often, fund companies blame compliance constraints for why they can’t do more with social media, he said.

“Compliance is a crutch,” Mr. Kowarski said. “I think the biggest thing holding firms back from using social media to engage investors is inertia. It’s not just about posting press releases through your Twitter feed.”