Transition Management
Investment strategy transitions are not easy to quantify (especially in advance) and what is difficult to measure tends not to get managed. Changes require in-depth consideration before transitioning because both costs and risk enter the equation. Like an iceberg, the biggest risks and costs are often hidden from view. This is because transitions can result in a portfolio compromising its performance – with little or no risk control during the change.
The role of a transition manager is to take responsibility for the management of the entire process and the results, to reduce unnecessary costs and unrewarded risks associated with the changes.
To make it easier for you to transition strategies, we offer a single implementation engine, which leverages the capabilities in our firm’s portfolio management, risk management and trading areas, this along with our consultative strategy and operational scale. The combined capabilities form a powerful and trusted transition platform. Our primary responsibility is to mitigate risks, reduce costs and avoid the pitfalls transitions present, and deliver a seamless experience for you.
We do this in four phases:
Onboarding phase
This is the initial phase of the transition where we take on the client.
Pre-trade phase
We’ll work closely with you and your trusted asset consultants or actuaries to understand your desired transition objectives and expectations.
Implementation phase – where the money moves
This is where the actual transition takes place.
Post-trade phase
After completing the transition, you’ll receive a comprehensive post-trade report.
Benefits
The value offered by our Transition Management Services are:
- Transition management is a core component of our day-to-day operation processes. We have been transitioning assets daily since the inception of our business in 1997.
- We have established processes to ensure efficient execution and minimised costs. Our defined process uses industry-recognised systems that ensure the transition is conducted in a consistent and predictable manner, reducing the chances of errors.
- We have depth of experience in complex transitions. Due to our vast experience, our specialists confidently manage, monitor and implement clients’ strategies to align with their interests. We have dealt with all sizes and complexities. Our clients include most of the asset managers in the investment management industry, as well as various administrators, transfer agencies and custodians.
Advantages
- We are not a brokerage house and are independent from brokers. We do not buy and sell securities and are not obligated to, or biased toward, any single broker. By having a selection of brokers to choose from, we are able to offer the most competitive rates for you.
- We leverage the power, efficiency and scale of the same transition management capability used to manage South Africa’s largest multi-management business with over R400 billion in assets under management.
- Considering the size and scale of our asset management network, we are uniquely positioned to find opportunities to match assets across our balance sheet to enhance transition efficiencies and reduce costs.
- We are a central point of contact for project management and accountability, reducing operational risks and ensuring effective communication of the transition plan to all stakeholders. This alleviates your team to focus on its core functions while the transition management team handles the intricacies of the transition.