A leading investment management firm wanted to initiate more proactive steps to manage investor redemption activity in the face of financial market turmoil. Complicating the challenge was the need to respond quickly to rapid deterioration in market stability with limited available resources.
Aventine Partners developed a predictive model targeting unusually large investor redemption activity. Using demographics, investment account detail, and investor behavior data, the redemption model scored and ranked investors based on the predicted likelihood of a near-term withdrawal from the client's investment funds.
Approach
- Identified near-term, out-sized redemptions as the behavior to measure and model
- Gathered account-level demographics, history, and transaction data
- Developed a propensity to redeem model to score and identify at-risk investors
- Provided scored lists of investors for outbound telemarketing with objective of reducing redemptions
Results
The investment management firm used the model results to drive a successful phase 1 test of a comprehensive redemption management program:
- Ability to respond within three weeks
- Target list tailored to available calling capacity
- Drivers of risk identified to influence save programs
