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 and daily interaction as well as robust reporting including customized daily transition updates, post-transition reporting, transaction reporting and attribution coupled with 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 toll the transition might have 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.
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.
An experienced, well-resourced global transition management team
$76 billion
Assets transitioned in 2022
21 professionals
Transition management specialists around the globe
40⁺ years
Experience transitioning assets for clients
20⁺ traders
All specializing by asset class and instrument
17 years
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 captures 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.
A unique business model, client-centric approach and seasoned team results in more reliable performance and outcomes for your transition. Let us put together a clear, outcome-oriented plan for your next transition. Contact us today.
Highlighted research
This paper explores the market dynamics during the first half of 2020 and how time-tested implementation best practices worked. We discuss two rebalancing approaches and apply these to a case study.
Case studies are problem-solving stories. We select a situation that is indicative of problems clients in this category are facing. The recommendations described do not represent a standard strategy or set of recommendations made for all advisory clients with similar issues. Each client has unique requirements, challenges, and constraints, and our advisory solutions are tailored to each client’s specific needs.
This paper examines strategies investors can employ to improve their outcomes with modest changes in process–a clear focus on fee mitigation and transaction cost management.
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An essential tool for managing large pools of capital as derivative overlays help manage risk elements and improve performance.
Execution solutions to achieve enhanced returns using the latest advances in technology to find liquidity, reduce transaction costs and manage risk.
Improve control of exposures and risk-adjusted returns and reduce the cost of production while keeping your investments precisely aligned to your beliefs without sacrificing the power of a multi-manager approach.
Implementation Resources
RISK MANAGEMENT
Managing Exposures Knowledge Exchange
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Q2 2023 UPDATE
Quarterly Trading Report
A tale of two different responses to the debt-ceiling saga.
Q4 2023
Institutional Trading Calendar
Identify which days in the year have greater potential for elevated risk or reduced market liquidity.
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1 As of December 31, 2022.
2 Past performance is not a guarantee of future results. Russell Investments Transition Management Performance Composites – 5-year composites ending December 2020.