Transition Management
Eight guidelines for choosing a trusted provider
Choosing a trusted transition management provider is a decision that can have significant financial consequences.
The use of specialist transition managers has grown in recent years for two main reasons:
- increased attention on risk exposures when restructuring portfolios, and
- the need to focus on investment performance during volatile markets.
Distinguishing between providers and choosing the most appropriate transition manager remains a challenge because how each provider is remunerated is often not transparent and in addition historical track records are not always standardised and therefore difficult to meaningfully compare. Unfortunately this allows some providers to game the results without the client's knowledge - to hide implicit costs or cherry pick composite benchmarks to the client's disadvantage.
There is no simple formula to steer this decision, but we have provided eight guidelines to help institutional investors improve governance of the process.
For more information on Russell's globally recognised transition management services, click here.
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