Transition Management is the liquidation and funding of one or more portfolios as a result of a change in investment manager or a shift in asset allocation. A properly managed transition can help:
- Reduce cost –through lower commission rates and an appropriate execution strategy, a managed transition reduces the explicit cost to the client.
- Control risk – by managing the risk exposures (market, sector, industry, currency) and optimizing the order sequencing, a managed transition can reduce the opportunity cost to the client.
- Achieve efficiency – by coordinating the communication between managers and custodians, a managed transition achieves single party accountability and minimizes operational risk.
Each client is assigned its own dedicated project manager to oversee all aspects of its transition. This provides a single point of contact for clear and efficient communication throughout the transition process.
Our transition management service is based on the belief that transition management is an exercise in risk and project management. The ultimate goal is to move the current portfolio structure to the desired portfolio structure in the most efficient manner possible and at the least overall cost to the plan.