The rise ofAI-enabled analytics
How asset managers harness AI to optimize
the development and distribution of products

DATA AND ANALYTICS

Artificial Intelligence (AI) isa group of different technologies
that mimic human minds.

AI is machine processes built from large datasets that mimic the cognitive abilities of human minds.
You can think of AI as having three sub-technologies:
ARTIFICIALINTELLIGENCE

These new technologies are accelerating how businesses
can extract value from data and analytics — from thecreation of new data through sophisticated deeplearning models, to natural language interpretationand generative AI.

Machines with cognitive functions that humans associate with other human minds.
These include all aspects of perceiving, learning, and problem solving.

MACHINE LEARNING

Uses statistical methods to learn from experience to create
recommendations or predictions.

DEEP LEARNING

Subset of machine learning that makes thecomputation of multi-layer neural networks feasible.

GENERATIVE AI

Methods to generate content including
natural language, software code, and images.

AI-enabled analytics are transforming how businesses can extract value from data
TABLE OF CONTENTS
AI-enabled analytics are being used tooptimize asset management distribution

3

1. Total market sizing

6

2. Demand forecasting7

3. Scenario planning

8

Translating data into effective action

9

AI-enabled analytics deliver value
across the distribution function

10

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICSCREATE
AI-driven web scrapers and crawlers
like GPTBot have unlocked a new ageof data volume and accessibility, while
new data harmonization, arbitration,and enrichment capabilities optimize
data preparation.

MODEL
Machine learning models, deep learning,and generative AI engines have transformed
the accuracy of predictive models, thepower of diagnostics, and prescriptive
capabilities.

INTERPRET
Generative AI has enabled a new levelof data democratization through naturallanguage models such as ChatGPTand Llama2, while at the same time
empowering analysts with SQL, R, andPython coding assistants such as Copilot.

2AI-enabled analytics arebeing used to optimize asset
management distribution.
Our 2023 Digital Transformation Study
uncovered that firms plan to boost theirspending on next-gen technology by more than
20 % in the next two years — even in the face ofeconomic uncertainty.
Why? Market leaders see the value of action
and the risk of inertia. A full 71% of financial
services leaders say AI has significantly changed
how they work.
Every day, AI and machine learning evolve to
become more intelligent. “We are improving
our response to new demands,” noted one CTO.
“Now we can create predictive analytics andunderstand purchasing preferences.”

Distribution life cycle
AI offers tangible solutions to the scale, efficiency, and effectiveness challenges that distribution teams facein building businesses that deliver better outcomes for clients.

“We’re now confidentin our strategic
decision-making.”“We’ve increased sales
effectiveness by 20 %.”B y using sophisticated sales
targeting algorithms to identify
opportunities and focus messaging
on evidenced differentiation.

Sales

Strategy— Chief Strategy Officer,Global Top-10 Manager—Head of U.S. Distribution,Multi-asset Manager“We’ve measured
an improvementin marketing ROI.”W ith personalized and targeted
campaigns facilitated by uniqueinvestor persona, demographic,
and geolocation data.

 hrough a new predictive model thatThas informed new market entry andproduct development decisions.

MarketingProduct“We’ve consolidated
our fund range by 15 %.” ith predictive models that helpW
us gain confidence in demand andanticipate industry trends.
— Head of Product,
Global Fund Manager— Chief Marketing Officer,
European Asset Manager

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICS

3

Why are AI-enabled analytics
a priority for product leaders?
Because launching newproducts is expensive,and most are not successful.
Successful new product launches can makea huge contribution to overall growth. Yetproduct and strategy leaders don’t havethe tools to predict demand with confidence,
contributing to poor new product growthperformance.

PERCENT OF FUNDS LAUNCHED BETWEEN 2013 AND 2018 BY ASSET LEVEL<€100M€100M–€250M

65%
Source: Broadridge Global Market Intelligence (GMI)€250M– €500M€500M–€1BN

100 %

>€1BN

15%

9%6%5%Of all funds launched between 2013
and 2018, only 11% have grown toexceed €500M AUM.

11%€500M–>€1BNDespite this, 48% of AUM growth came from new funds (<5 years) overthe latest five-year period.

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICS

4Global Demand Model brings
confidence to current andfuture demand analysis.
Broadridge helps unravel the complexities ofdemand forecasting. Our innovative applicationof AI-enabled analytics makes it easy to size
global markets, predict shifts in product demand,and measure the business impact of a broad
range of hypothetical macroeconomic andcapital-markets outcomes.

CREATEMODEL• AI crawlers and scrapers• Machine learning• Generative AI large language models• AI data prep such as watsonx• Deep neural networks• Visual analytics• AI-automated
qualityassurance, cleansing, andexception management

1. TOTAL MARKET SIZING

2. DEMAND FORECASTING• Integrated

global retail and• AI and ML models trained on the• H armonized fund and client• Three-year forward-looking views

institutional AUM for true
total market coverage of public
and private markets
taxonomies to standardize market
sizing by country, fund sector,
vehicle, and distribution channel

most complete set of global retailand institutional assets, flows,
and feesof quarterly assets, flows, fees,and revenues across all asset
classes and wrappers

predictive accuracy.

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICSINTERPRET

3. SCENARIO PLANNING• Consensus outlooks fromleading financial institutions
and researchers on GDP growth,interest rate policy, inflation rates,
market performance, and more• Asset management demand

scenarios for a range of bulland bear-market economic
conditions accessible througha chatbot virtual assistant anddashboard analytics

5CREATE

1. Total Market Sizing

Best-in class data and expert
research validation

The accuracy of any AI-enabled forecast
depends on the quality of the inputs.

Proprietary
Broadridge Global Market Intelligence• Global AUM• Flows

Reliable and comprehensive data inputs ensurethat models capture the nuances of real-world
trends and variations, leading to more precise
predictions. Inaccurate or incomplete inputs
can introduce biases that undermine themodel’s effectiveness. High-quality data playsa critical role in producing actionable insightsthat inform decision-making.

TOTAL MARKET ASSETS
Retail and Institutional

Broadridge Global Pricing Intelligence• Fund Pricing• Fee Revenues
Broadridge Fund Buyer Focus• Investor sentiment
AI Document and Web Scraping
Third-party• Regulator data feeds• Data partners• Research affiliates+Combined with a bottom-up
construction of the industry• Local consultants and researchers• Bottom-up market sizing• Market-specific methodologies• Expert network verification =Yields the most accurate viewof the total addressable market
6 | BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICS

6MODEL

2. Demand Forecasting
Predictive analytics, underpinned by machinelearning models, leverage historical data
patterns to anticipate future demand trends.
These models can decode intricate demand
patterns in asset flows by identifying complex
relationships hidden in data.
As a result, strategists can illuminate the impactthat industry trends and macroeconomic
and capital markets forces have on assets,flows, fees, and revenues. This transformative
capability enables asset managers to optimize
sales, marketing, and product resource
allocation to stay ahead of market trends
and gain a competitive edge.

Machine learning with human oversight
Our approach incorporates humans in the loop, adding expert oversight end to end

INPUTS
Trained on a complete historyof global retail and institutional
assets, flows, fees, and revenues,
in relationship to forecasted andhistorical macroeconomic andcapital markets data.

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICSFEATURE EXTRACTIONLEARNING

Relevant patterns and characteristics
are extracted, capturing essential
information and enabling themodel to discern the meaningful
relationships driving asset growth,demand, and revenue.

Supervised machine learningmodels are iteratively refined using
hyperparameter optimization bycomparing their predictions toactual outcomes, allowing them toadjust parameters and improve theirpredictive capabilities over time.

OUTPUTS
Global Demand Model forecasts
three years of quarterly assets,flows, and revenues by market,
channel, vehicle, and fund sector.
Learned knowledge is applied tohypothetical macroeconomic andcapital markets variables.

TABLE OF CONTENTS | 7

INTERPRET

3. Scenario Planning
Machine learning-powered predictive analytics
enable scenario planning to determine how
a range of economic and financial market
outcomes impact the global demand for asset
management products.
For economically sensitive business models
such as asset management, these analytics are
particularly effective in revealing high-probability
future market rotations. These analytics help
product and distribution teams with productplacement and enable leadership to makeinformed decisions around resource allocationand corporate strategy.

An illustration of Global Demand Model in action
Global Demand Model forecasts growth rates and visualizes
results across a range of possible outcomes. Each one of
the four scenarios reflects the bull- and bear-case scenariospublished in the investment outlooks from leading banks,
investment houses, and market research firms.

THREE-YEAR ORGANIC CAGR FORECASTSSCENARIOCOUNTRY

Stagflation

Australia

Hard landing

China

Soft landing

Hong Kong

No landing

India
Japan
Singapore

Stagflation: Inflation becomes entrenched,weighing on the economy for an extended period

South Korea
TaiwanThailand

Hard landing: Inflation is curbed, but results
in recession to which policy makers pivot

FranceGermany
Switzerland

Soft landing: Higher rates tame inflation, which falls
in line with central bank’s forecasts without a recession

United Kingdom
BrazilNo landing: Inflation falls more than forecasted
and growth surprises to the upsideCanada
United States-2 %0%2%

4%6%8%

10 %

12 %

14 %

16 %

10 %

12 %

ORGANIC GROWTHSCENARIOSECTOR

Stagflation

Equities U.S.–Passive

Hard landing

Equities U.S.–Active

Soft landing

Multi Asset–Balanced

No landing

Target Date Fund
Equities Global–Active
Bonds U.S.–Active
Equities, Sectors, and Themes
Real Estate
Equities Global–Passive
Multi Asset–Allocation
Hedge funds–Derivatives
LDIBonds Flexible
Hedge Funds–Equities
Equities Europe–Active-8 %-6 %-4 %-2 %0%

2%

4%

6%

8%

ORGANIC GROWTH

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICS

8Translating data into effective action
Large language model interfaces mark a turning
point in business intelligence. AI democratizes
data and intelligence across critical decision-making
functions, enabling efficient interrogationof huge bodies of content, paving the way forbetter informed decisions, common “truths”
and enduring success in a data-centric world.

DataDashboards

Language Models

Extract real-world valueData inundation is a reality formodern businesses. Extracting value
from a sea of information requires
efficient tools. Traditional methods
fall short as they’re time-consuming
and lack real-time insights.

Insights at your fingertips
Dashboard analytics bridge the gap.
Visual analytics present complex datain easily understood charts, granting
instant access to critical KPIs andtrends. Interactivity enables quick
data exploration, empowering agile
decision-making.

A new dimension
Large language models add depth. They
comprehend and generate human-liketext from data inputs. By processing
natural language queries, they connect
analysts and non-technical users with
understandable, contextual insights
for unique industry and role-basedapplications.

DistributionAI is comprised of two knowledge centers: Insights and Analytics

Our latest innovation — a generative AI large
language model called “DistributionAI” —makes insights more accessible than ever.

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICS

9

AI-enabled analytics deliver value
across the distribution function.
Partner with Broadridge to solve your mostpressing distribution challenges with next-gen
technology, data, and analytics.

StrategyProductMarketing

Sales

Predictive demand models
build confidence in strategic
decision-making, new market
entry, and organic and inorganic
growth opportunities.

Forecasted asset flows
provide a quantitative andsystematic approach to analyzing
the impact of market, economic,and industry trends.

Brand and sentiment tracking
provides critical marketing ROI
analysis, client risk analysis, anda deeper understanding of theclient experience.

Sales opportunity targetingalgorithms identify top prospects,
prioritize leads, and position funds
against the competition withwholesaler-friendly workflow tools.

Generative AI agents
democratize critical market
intelligence with a natural
language interface.

Sophisticated pricing analytics
support effective pricing decisions
and measurement of value withaccurate benchmarking, andmeasurement of competitive
precedent, sensitivity, elasticity,and opportunity cost.

End-investor demographics
and personas, allied with a deep
understanding of investor needs bylife-stage and financial conditioning,that improve campaign messaging
and design.

Advisor scoring and segmentation
models define ideal advisors to target
based on unique advisory intelligenceand key engagement and sales
activity metrics.

Your competitors are tapping into the power of AI-enabled analytics. Learn how Broadridge can help put you on top.
DistributionInsight.Broadridge.com

BROADRIDGE | THE RISE OF AI-ENABLED ANALYTICS

10Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over $6 billion in revenues, provides the critical infrastructure that powers investing, corporate governance,and communications to enable better financial lives. We deliver technology-driven solutions that drive business transformation for banks, broker-dealers, asset and wealth managers
and public companies. Broadridge’s infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds
to tens of millions of individual and institutional investors around the world. Our technology and operations platforms underpin the daily trading of more than $10 trillion of equities,
fixed income and other securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries. For moreinformation about us, please visit Broadridge.com.

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