The T Ratio

Helping you evaluate and compare transitions

What is the T Ratio?

The T Ratio is designed to complement the T Standard by giving you a context to evaluate and compare transitions that differ in complexity, particularly in terms of size and risk. Learn more about the T Standard.

Helping you evaluate and compare transitions

The T Ratio standardizes post-transition implementation shortfall and compares it to the original pre-transition estimate by adjusting the shortfall for the transition event risk.

Your benefits

Any measurement of risk-adjusted performance should have three essential characteristics. It should be simple, objective and transparent.

The T Ratio can be a very useful metric to help you analyze already-completed transition events and in preparation for proposed transition events. The T Ratio can help you -

  • Compare your event's implementation shortfall to a composite of other events you have completed with us, adjusted for event risk and transition size.
  • Compare your event's implementation shortfall to a composite of similar events.
  • In the course of a relationship review, analyze the aggregate risk-adjusted results of all of your transition event outcomes.
  • During the pre-transition planning process, evaluate your estimated implementation shortfall to a historical composite of events with similar characteristics.

We are constantly looking for ways to reduce risk, improve investment performance, and bring innovation and transparency to the transition management industry.

The T Ratio gives you an opportunity to analyze transition events within multiple contexts of varying risks and costs.

Russell Investments Implementation Services LLC., member of FINRA, SIPC.