Deciding on when and how to transition shouldn’t be left to chance.
All transition managers are not born equal. Given the small number of providers available, you might be forgiven for thinking that the services they provide are broadly uniform. This couldn’t be further from the truth. Our Survey of transition managers in 2017 (refreshed in 2020), showed differing skills, experience, coverage and even conflicts. In picking a transition manager we typically review:
For most Institutional investors, forming a panel of providers allows quick an easy selection, without the need for formal procurement. Whilst panel’s provide ease of selection, its important providers remain appropriate and fit for purpose. This can be achieved by:
The choice of transition manager is often determined by a competition of estimate of costs. Lowest tends to win. This works where estimates are always aligned with results, but sadly that isn’t the case. Determining the best provider for the job requires:
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