Organizations invest tremendous effort in setting asset allocation policy, designing asset class structure, and researching and selecting investment managers.
However, even the most innovative investment ideas can fail to meet expectations if they are implemented poorly.
Our comprehensive transition management strategy and dedicated resources have the expertise to help you:
- Minimize unnecessary costs
- Mitigate unrewarded risk
- Reduce administrative workload
- Eliminate performance holidays and maintain accountability
Our suite of transition management services
We have the experience and the expertise to help clients manage their risks and maintain the value of investments through periods of portfolio restructuring. With a dedicated portfolio manager, you get accountability, daily interaction, and robust reporting, including customized daily transition updates, post-transition reporting, transaction reporting, attribution, and all necessary regulatory and board reporting.
Interim portfolio management
As an interim portfolio manager, we can assume responsibility for the portfolio's exposure and performance upon manager termination. Trading strategies and risk management techniques exercised throughout the assignment can significantly reduce the transition's toll on portfolio value. Just as importantly, we assume the workload from the asset owner, preventing vital resources in the organization from becoming overly burdened by non-core administrative tasks. As a result, the asset owner often receives active management with reduced risk without paying the active management fees.
Why Russell Investments for transition management?
Three key and important reasons
Better performance outcomes through creative strategies and quality execution
We approach each event as a short-term asset management assignment, providing consultative insight to find optimal solutions for the unique attributes of each transition.
We source and access liquidity in an unbiased fashion through our multi-venue trading platform which provides breadth and depth of market access. Our strong performance track record across all asset classes demonstrates the value of our approach and process.
Global transition management experience1
In 2024, we managed 99 events and transitioned $88.7 billion.
Our global team includes 20 implementation professionals who specialize in transition management.
Alignment of interests and fiduciary oversight
We work as an agent - never as a principal - which minimizes conflicts of interest.
As an asset manager, we maintain fiduciary oversight and provide a duty of care to investors as well as full transparency on all costs and changes.
1 As of December 31, 2024.
An experienced, well-resourced global transition management team
$88.7 B
Assets transitioned in 2023
98
EVENTS IN 2023
$2.3 T
ASSETS TRADED in 2023
40+ yrs
EXPERIENCE IN TRANSITION MANAGEMENT
20
TRANSITION SPECIALISTS GLOBALLY
12 yrs
TRANSITION MANAGER AVERAGE EXPERIENCE
Source: Russell Investments. Data as of December 31, 2023.
The T Standard
In 2003, Russell Investments participated in the development of the T Standard, which has since been adopted as the industry standard methodology for treatment of the critical factors that drive portfolio performance during a transition. The T Standard Implementation Shortfall is the arithmetic difference between the return on the legacy portfolio and the return on the new portfolio, performed on a daily basis. The T Standard measure of implementation shortfall (IS) was adopted by the T Charter as the recommended default calculation for IS.
Use of the T Standard helps capture the effects on portfolio performance from all transition activity. We believe that this consistency of reporting is critical for investors to be able to effectively compare providers and their cost estimates.
A client-centric service model
With a dedicated portfolio manager to guide you through this complicated and risky period of change, you get accountability and daily interaction from your key point of contact.
Robust reporting and communication including customized daily transition updates, post-transition reporting, transaction reporting and attribution coupled with all necessary regulatory and board reporting.
Customized Portfolio Solutions
Specialist expertise and strategies to help your team gain greater portfolio control, limit costs, reduce risk, and enhance returns.
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Lisa Schneider, CFA
Managing Director,
Head of Client Solutions
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