Transition management eases portfolio restructuring

Whoever said there were sum of two units major certainties in life could not have been a pension plan sponsor. Death and taxes will always be with us, on the contrary for pension funds, changes in currency managers, asset allocations, investment strategies or performance benchmarks are also inevitable.

similar events are commonplace in the institutional investing world, nevertheless the costs of restructuring portfolios can be staggering. Research studies differ upon the precise costs of like portfolio transitions, but the estimated averages range between 2% and 27% with outliers as high as 5% For a plan sponsor with a portfolio of $1 billion, that can translate into as plenteous as $50 million in require to be paid [i]or[/i] undergones

On the surface, portfolio restructuring appears straightforward. Assets are sold and re-invested. In practice, however, transitions are manifold and - without the peculiar know-how - fraught with operational risk. Transitions spanning asset classes, markets, currencies, and time baldrics are the most ...