Advisor Scoring in Opportunity Hunter

Advisor Scoring in Opportunity Hunter

Enabling distribution professionals using the most comprehensive data in the industry

Hello, my name is Tim Kresl and I’m one of the principles of distribution insight at Broadridge. As such aIl get the unique opportunity to partner with our asset manager clients to create robust data driven distribution strategies to transform their business’

One of the core challenges that we deal with in our practice’s advisor targeting and scoring. Frankly, targeting the right advisors and advisor teams is becoming increasingly difficult for asset management distribution professionals.

Even with an influx of new available data, given the existential pressures facing our industry, asset managers find an increasing need to increase both efficiency and effectiveness of their operations.

Broadridge has been helping firms solve this problem for years with solutions such as Opportunity Hunter, Sales analytics and Market Analytics. Based on client feedback and extensive real world testing we can help you leap forward by integrating advisor level scoring into the opportunity hunter tool.  The advisor scoring in this tool, we can now better enable our clients to target the right message, to the right advisor, at the right time in their journey.

Let’s start with some background to opportunity hunter. Before we dive into the new scoring module. Opportunity Hunter is an industry leading tool helping Asset Managers identify product opportunities at the office level. This tool leverages Broadridge’s unmatched distribution data set which covers more than 95% of retail channel assets, to compare an office’s current holdings to a comparable client product across return, risk, ratings and fees.

The tool then surfaces the largest pockets of winnable assets customised to the client’s product line and gives key talking points to distribution professionals to hone their messaging strategies. Opportunity Hunter provides clients the ability to tactically target product opportunities at the office level, however it stops short of telling clients which advisors in those offices are the most influenceable and valuable to your firm.

How do we help clients to make that next leap down to the advisor level? Lead data scientist Alex Golub-Sass will walk us through the approach.

Alex?

Thanks Tim. When approaching this problem, we want to start with a distribution mindset and identify the metrics that users actually care about and use on a day-to-day basis. In working with our clients, we found the following 7 metrics come up time and time again.  Active/passive mix represents the proportion of an advisor’s book of business that is allocated to active products. 

Concentration looks at how much of an Advisors book is allocated to their top two managers.  If an advisor is only using 1 or 2 managers, then they are less likely to be influenced by a new firm.

New funds looks that the number of funds that an advisor has added in the past 12 months. In our research, we found that advisors that add funds within the last 12 months are more likely to add funds in the next 12 months. Conversely, an advisor that has not added funds within the last year is unlikely to add funds within the next.

Model usage is based on our proprietary algorithm to identify model accounts. We’re able to identify home office, third party and advisor led models. If an advisor is predominantly using home office or third-party models, then they are less likely to be influenceable.

These 4 metrics all attempt to measure the level of influenceability of an advisor, or in other words. If you’re able to get in front of this advisor, you might be able to make an impact on their decision. The next 3 metrics are focussed on the advisor’s specific value to you. The most important value metric is Estimated winnable AUM, this is where we model and score fund holdings and compare the fund usage to the products you are selling. Similar to the scoring in opportunity hunter we look across risk, return, ratings and fees to determine whether your fund outperforms what they’re holding and therefore if it’s a winnable opportunity for you.

Total office assets help us model the value of the advisors in the office, this is to address the fact that relationships take time to build and just because an advisor may not have winnable opportunities today, doesn’t mean that they may not have them in the future. We want to make sure that we can account for that value. And finally, we look at practice growth, this metric is used to measure advisors that have growing practices and diminish the importance of those who’s practices may be shrinking. These metrics combined display the value of an advisor to your specific firm based on what products they are currently holding and what products you are currently selling.

That’s a lot of information for an individual to process. So how do we bring all of this together in an easy to understand and actionable framework? Let’s take a quick look at how we’ve developed this into an easy-to-understand interface that sits within the current Opportunity Hunter environment. In this demo, I’m a wholesaler for the fictional Bruckner Funds asset management, my territory includes Indianapolis.

Bruckner recently had his high-income fund put on the recommended list of Steeple Nicholas. I’m interested in finding opportunities in the high-income fund as Steeple Nicholas in Indianapolis. I enter my search criteria and the best offices will pop up on the screen. I select the office at 8900 keystone crossing, and the first thing I notice is that there are 47 advisors in this office. Previously I wouldn’t know which advisors I should target for the high-income fund or more generally for that matter. Now I look at the opportunity. Following the link that says, ‘advisors for this opportunity’. When I click on the link it takes me to a list of the advisors in this office with a high-income fund as its opportunity. When I get to the page, the first thing that I’m going to notice is that all the advisors are given a score. This score is for the advisor as a whole, not for the specific opportunity and is a combination of the influenceability and value scores here on the right. These influenceability and value scores are further broken down based on the metrics that we defined earlier. With this information, I as a wholesaler can identify the relevant advisor in the office based not just on the winnable opportunity but from their underlying characteristics that can infer from their investment behaviour.

Thankyou Alex, for that excellent overview of the advisor scoring module within opportunity hunter. Given the unprecedented challenges facing asset managers today, we believe that the unique combination of Broadridge’s unrivalled distribution dataset, Opportunity Hunter’s easy to use interface and our new Advisor Scoring module allows users to deliver the right message, to the right advisors at the right time in their journey.

For more information on this new tool please contact your Broadridge account manager, or Fred Kosanovic, who’s contact information is showing on the screen currently. Thank you for listening and we look forward to talking to you soon.