Transition Management
Maximise the performance of assets in transition by reducing unnecessary cost and risk.
Organisations 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:
- Minimise unnecessary costs
- Mitigate unrewarded risk
- Reduce administrative workload
- Eliminate performance holidays and maintain accountability
Our suite of transition management services
Experience & expertise
Transition Management
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 customised daily transition updates, post-transition reporting, transaction reporting, attribution, and all necessary regulatory and board reporting.
Risk management
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 organisation 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 £168.7 billion.
Our global team includes 80+ implementation professionals including 20 who specialise in transition management.
Alignment of interests and fiduciary oversight
We work as an agent - never as a principal - minimising conflicts of interest.
As an asset manager, we maintain fiduciary oversight and provide a duty of care to investors and full transparency on all costs and changes.
¹ Source: Russell Investments. As at 31 December 2024. Assets transitioned, $211.3 bn, £168.7 bn, €204.1 bn.
An experienced, well-resourced global transition management team
165.3 B
Assets transitioned in 2024
105
Transition management events in 2024
1.71 T
Assets traded in 2024
40+ years
Experience transitioning assets for clients
16
Transition management specialists around the globe
20
Transition manager average years of experience
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
Dedicated portfolio manager
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
Robust reporting and communication including customised daily transition updates, post-transition reporting, transaction reporting and attribution coupled with all necessary regulatory and board reporting.
Related research
Case study
Liquidating illiquid equity portfolios
How Russell Investments as transition manager added value by providing transparency on costs and minimised out-of-market risk when liquidating two European small cap equity portfolios.
Case Study
Superannuation fund mergers
Minimising cost and risk is always important, but when over 15 different parties are involved in a complex merger of two pension schemes, a robust project management platform and complete transparency can be of equal importance.
Case Study
Pension risk transfer: A framework for successful implementation
How a manager with broad implementation skills across transition management, interim asset management, overlay services and foreign exchange can act as an extension to a client team, improving risk management, and facilitating the client focusing on investment issues and less on onerous day-to-day operational tasks.
Customised Portfolio Solutions
Specialist expertise and strategies to help your team gain greater portfolio control, limit costs, reduce risk, and enhance returns.
Our experts work hard to solve the complex issues our clients encounter.
Our collection of research shows our dedication to solving complex investment problems.
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Maarten Roeleveld
Managing Director, Head of Customised Portfolio Solutions, Europe
About Maarten