Transition Management

Maximize the performance of assets in transition by reducing unnecessary cost and risk.

Our suite of services The Russell Investments advantage The T Standard Related research Customized Portfolio Solutions Contact us

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

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 customized 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 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.

Our capabilities

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

$211.3 B

Assets transitioned in 2024

105

Transition management events in 2024

$2.2 T

Assets traded in 2024

40+ years

Experience transitioning assets for clients

18

Transition management specialists around the globe

12

Transition manager average years of experience

The T Standard

In 2003, Russell Investments participated in developing the T Standard, which has since been adopted as the industry standard methodology for treating 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.

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A client-centric service model

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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.

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Robust reporting and communication including customized daily transition updates, post-transition reporting, transaction reporting and attribution coupled with all necessary regulatory and board reporting.

Related research

Case study

METRiQ Portfolio Diagnostic

Know what you own. Know where you want to go. Know how to get there.

Understanding and managing portfolio risks is crucial for institutional investors. They often face three key challenges:

  • What do they own? Identifying actual exposures and addressing gaps or overlaps.
  • Where do they want to be? Assessing proximity to their targets.
  • How to get there? Finding the most efficient and cost-effective way to align their portfolio with policy.

Learn how our portfolio diagnostic leverages METRiQ, the powerful analytic platform we use internally, to provide a thorough evaluation of clients' portfolio exposures. This process helps identify unintended or outsized risks, enabling more informed decision-making and optimizing portfolios through improved risk-adjusted performance, enhanced risk management, and cost savings.

Read the case study

White Paper

Best practice for fixed income restructures

A transition is not a trading exercise—it is a risk management exercise. Read our evaluation of four portfolio transition strategies we see used most often.

This paper discusses four transition management (TM) strategy options (below) and evaluates them using the three drivers of benchmark relative performance: fiduciary oversight, asset allocation and transaction costs.

  1. Terminated manager liquidates portfolio to cash
  2. New manager restructures to target portfolio
  3. Fiduciary TM restructures to treasury basket
  4. Fiduciary TM restructures to target portfolio
Learn the best practices

White Paper

Pension risk transfer: A framework for successful implementation

Read how to effectively manage a pension risk transfer (a.k.a. annuity buyout) for a defined benefit plan during a volatile market.

In this paper, we cover the risk transfer options available to DB plan sponsors and the considerations of pursuing this type of strategy.

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Customized Portfolio Solutions


Specialist expertise and strategies to help your team gain greater portfolio control, limit costs, reduce risk, and enhance returns.

Recent Insights
Recent Research

Our experts work hard to solve the complex issues our clients encounter.

Our collection of research shows our dedication to solving complex investment problems.

Insights Research

Private Markets Playbook: Positioning for a New Reality

How to spot opportunities and gain exposure to private investments without taking on too much risk.

Read the article

Eye on private credit

Understanding the basics and beyond

With a robust supply of asset-based investments, the private credit market has grown to over $5T dollars and is anticipated to be worth nearly $8T by 2027, driven by structural shifts in the lending environment.

Start exploring

Outsourced CIO

The Right OCIO Can Cure Insomnia in Restless Markets

Even in normal times, managing an investment program is a challenging job. But when you add on tariffs and trade wars, it's bound to lead to some sleepless nights. Learn how an OCIO firm can provide relief.

Read the article


Implementation resources

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Managing exposures

Knowledge Exchange

How exposed are you? When it comes to risk management, we've got you covered.

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Institutional

Trading Calendar

Identify which days in the year have greater potential for elevated risk or reduced market liquidity.

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