An exploration into how asset managers are addressing today’s marketplace challenges and leveraging new tools and technologies to create more fruitful relationships with financial advisors. The asset management industry is confronted with several challenges to growth. Increased transparency via technology, competitive fee pressure, product commoditization, regulatory change and demographic shifts are contributing to increased margin pressure. One possible solve is to deepen relationships by turning existing client data into an asset. While leveraging analytics to inform client segmentation, client journey mapping and brand enhancement is not a novel exercise in the business world, it has perhaps not been fully adopted and implemented within intermediary distributed asset management.

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Thank you for attending our webinar today.
We will begin momentarily.

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Building Deeper
Relationships with Data
WELCOME
This webinar and the slides contained herein do not constitute legal
advice or recommendations for specific actions for your firm.
March 21, 2019

3. Presenters
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Tim Kresl
Principal, Distribution Insight
Broadridge Financial Solutions
Katie Firth
Head of Distribution Operations
& Business Intelligence
John Hancock Investments

4. 4© 2018 |
Broadridge at a glance
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in equity and fixed income
trades processed per day
$4B+ 5
$6T+ 5B+
decades of experience in the
financial services industry
revenue as
of FY18
customer communications
processed annually
$13T
in tracked financial
intermediary assets
21KRIA and BD firms
67K
BD office locations
421Mindividual accounts
326K
RIA and BD advisors
80+ 40+countries in which securities
processing is supported
clients for managed
services in North America
150 98%Brokerage firms on our
securities processing platforms
client revenue
retention rate
DATA IS OUR DIFFERENCE:One of a few select U.S. companies supporting the
financial services industry that is ISO 27001 certified
[NYSE:BR] part of the
S&P 500® Index

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BACKGROUND METHODOLOGY FINDINGS DISCUSSION

6. 6© 2018 |
Assets continue to shift to passive products
Source: Broadridge Data and Analytics
Positive net flows into
passive products
accelerated through the
end of Q4 2018,
continuing to put
downward pressure on
average expense ratios.
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ACTIVE vs. PASSIVE FLOWS (2018)
-$250B
-$200B
-$150B
-$100B
-$50B
$B
$50B
$100B
1Q2018 2Q2018 3Q2018 4Q2018
Active MFs Index MFs ETFs
BACKGROUND

7. 7© 2018 |
New distribution models to meet the
needs of millennials
Source: Broadridge Data and Analytics, Phoenix Marketing International
Boomers account for the lion’s share of assets, but millennials
will force adoption of new distribution models, including focus
on passive and demand for digitally led advice.
28%
26%
24%
21%
10%
9%
7%
5%
0% 10% 20% 30% 40%
Millennials (22-37)
Gen X (38-53)
Boomers (54-72)
Silent (73-90)
ETF MF - Passive
Passive as Percentage of MF & ETF AUM Share
Investors Use of
Robo-Advisors (%)
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Gen X 32%
Boomers 5%
Millennials 63%
Average AUM by Investor Segment 2017
$42,096
$128,583
$250,586
$315,586
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
Millennials (22-37) Gen X (38-53) Boomers (54-72) Silent (73+)
% of Total: 2.02% 16.14% 57.50% 24.34%
BACKGROUND

8. 8© 2018 |
The importance of segmentation continues to grow
Source: Broadridge Data and Analytics, Phoenix Marketing International
AUM by Wealth Segment 2017 (%)
$61,501
$200,449
$658,731
$4,229,631
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Mass Market Mass Affluent High Net Worth Ultra High Net Worth
Mass Market and Mass Affluent investors make up the majority of industry AUM,
highlighting the challenge of effective investor and advisor communication.
Average AUM by Wealth Segment
BACKGROUND
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High Net
Worth 39%
Mass Market 8%
Mass Affluent
49%
Ultra High Net
Worth 4%

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BACKGROUND METHODOLOGY FINDINGS DISCUSSION

10. 10© 2018 |
How asset management marketing executives
are approaching advisor relationships
Research Methodology
• Ten in-depth, one-hour interviews were conducted with
asset management firm marketing executives, many of
whom are Chief Marketing Officers.
• Firms included in this research represent a broad
spectrum of the industry, ranging from mid-tier to very
large asset managers.
• The extent to which the advisor journey and leveraging
data and analytics to deepen client relationships is an area
of focus for asset managers.
• Challenges and roadblocks to achieving success.
• Actions asset managers have taken or plan to take to
create a more holistic, relationship-driven approach to
client engagement.
Areas of Focus of the Report
METHODOLOGY
Findings from Data and the Search for Deeper Relationships, published September, 2018
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BACKGROUND METHODOLOGY FINDINGS DISCUSSION

12. 12© 2018 |
Finding I: Segmentation
Asset managers are implementing or considering a variety of
tactics to create a more client-centric, advisor journey focus.
• Hiring staff from outside the financial industry with experience
in digital, customer experience and/or journey mapping
• Segmenting advisors based on needs rather than channel and
sales volume
• Forming a working group with executives from marketing,
sales and operations to drive the process
• Tackling this challenge with smaller proof of concept initiatives
prior to a broader, expanded execution
• Integrating and upgrading existing technology and data
analytic capabilities
FINDINGS
We have a centralized tool that aggregates
data and that’s the basis for our reporting.
But it’s not yet built into the client journey;
we can cut the data by sales channel, and
prospects versus producers.
”
“
The ultimate vision is I can always identify
where an advisor is in our ecosystem
and bring that information back into a
central place so that any person in the
organization can pull it.
”
“
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13. 13© 2018 |
Analysis Is only as
valuable as its impact
Good analysis starts
with good questions
Not all data is
created equal
Getting more from segmentation projects
Taking the right approach to segmentation and analytics will help firms get more out of
existing data by asking the right questions and selecting the right analytical techniques.
FINDINGS
• Firms have unique business environments,
therefore analytic questions must be framed
in the right context
• Key stakeholders should work together to
identify what data is needed to answer their
specific questions as part of the process
• Data is only valuable if it serves a purpose;
it is more important to have the right data
than the most data
• Key stakeholders need to identify the right
data that is needed to answer their specific
questions rather than the perfect data that
can answer all questions
• Insights need to drive action—analyses
need to consider the end user, how
they work, and their agency
• Firms need to thoroughly understand
existing internal processes and ensure
insights drive decisions
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14. 14© 2018 |
Finding II: Content marketing
Seen as mission-critical and growing in importance as a tool
to deepen and expand the client relationship.
• Commoditization of product requires asset managers to differentiate
and stay top-of-mind with relevant, proprietary content.
• Digital has become a preferred mechanism for client interaction and
the delivery of targeted content.
• With so much content available in the marketplace (advisors are
inundated), it is critical to get the right content to the right advisor at
the right time.
• CRM platforms must be able to incorporate knowledge of an advisor’s
areas of interest, preferred types of content, desired frequency of
receiving information and content distribution preferences.
FINDINGS
The world has moved to content
marketing.Traditional marketing
describes value whereas content
marketing delivers value.
”
“
Content is going to be a challenge. I think
nowadays content is king—bottom line,
maybe even bigger than distribution.
Because if you’re going to have these
journeys and keep people engaged and
deliver the things that they want, we’ve
got to have a lot of stuff there in order to
stay in front of these individuals.
”
“
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15. 15© 2018 |
Finding III: Mapping the client journey
Asset managers recognize the importance of developing a
more holistic understanding of advisor-client relationships,
yet most are still in the early stages.
• Asset managers are implementing digital engagement strategies and
discussing opportunities to better understand advisor client needs and
preferred ways of working. Yet, it has been a gradual process, with
acknowledgment that much work is still to be done.
• Key factors impacting the pace of activation include:
– Building organizational understanding and alignment on the
definition of a journey strategy: What it is, what is needed and
what is the ROI?
– Getting buy-in from key stakeholders (sales, marketing, operations
and technology)
– Moving from ad hoc initiatives to a more systematic and
programmable engagement
FINDINGS
We haven’t gotten that far yet. The last 20 years
within our division we focused on product as our
brand. And now we’re shifting that dialogue and
focusing on the experience.
”
“
Is there a formal map for thinking about
engagement with advisors? We don’t yet
have that in place.
”
“
The customer journey is pretty much in the domain
of marketers versus sales people; I don’t think you
bump into a lot of sales people who are thinking of a
customer journey. I think they execute a customer
journey in many respects but they think of it more as
relationship management.
“
”
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16. 16© 2018 |
Client journey map
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FINDINGS
DABBLERS
PRODUCERSDEFECTORSPROSPECTS
EVANGELISTS
Prospect
validation gate

17. 17© 2018 |
Finding IV: The path forward
Traditional roles for sales and marketing are shifting as the economics
of the business is impacted.
Marketing is becoming more involved in driving revenue. Its role needs to evolve
to integrating data and analytics in support of advisor acquisition and retention.
Success factors include:
• Alignment of all key stakeholders in the firm:
– C-suite buy-in
– Start at the end-game and work backward. Ask questions,
starting with what are we trying to achieve?”
– Adopt a common language between all parties
– Assigning ownership to someone within the firm
• Assigning ownership to someone within the firm
• Conducting an audit of where, how and for whom data is created and how is it consumed
• Hiring talent with the requisite experience in client experience/journey mapping, tapping
into other industries
• Developing a client segmentation strategy with more robust data and more advanced
analytics
• Mapping the client journey with an integrated contact strategy and meaningful KPIs
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FINDINGS
To breakthrough we need
to change to a more agile,
dynamic approach. What it
will take: experiment, agile
processes and mindset.
”
“

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BACKGROUND METHODOLOGY FINDINGS DISCUSSION

19. Questions and Answers
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Tim Kresl
Principal, Distribution Insight
Broadridge Financial Solutions
Tim.Kresl@broadridge.com

20. 20© 2018 |
To download the report, Data and the Search
for Deeper Relationships, visit
broadridge.com/white-paper/data-and-the-
search-for-deeper-relationships
Thank you for joining us today
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