Independent transition management adds transparency and accountability to an otherwise opaque market
Hiring a dedicated manager for the transition of equity portfolios is now considered best practice for pension plan sponsors and fiduciaries. A plan fiduciary should always seek to manage an investment transition in a manner that is consistent with the principles of prudence and due diligence.
This paper explores the specialist approach to moving assets, compares equity to fixed income transitions, and transaction cost analysis while answering the following questions:
- Why hire a fixed income transition manager?
- Are fixed income transitions unique?
- Do transition managers add value in fixed income events?
- What about other fixed income securities, like treasuries?