Northern Trust Issues Transition Management Analysis
Northern Trust’s pre-trade report includes a number of risk metrics, including 20-day performance comparisons of target and legacy portfolios, industry sector analysis, a corporate earnings announcement calendar for relevant securities, and a summary of trades by time zone for global portfolios, according to a press release.
It also details the full cost of a transition,
including explicit costs such as fees, taxes and trading
commissions, as well as implicit costs like bid-offer
spreads, market impact, and opportunity cost as a
security price moves over time
“While clients sometimes select a transition manager
based on the lowest estimated costs, we believe the goal
of a pre-trade report should be to provide a reliable
assessment of the risks and costs associated with a
transition event,” said Ben Jenkins, a senior
strategist in Northern Trust Transition Management, in
the announcement. “Our new report provides a more
comprehensive view of the potential risks when trading
assets, enabling us to deliver a customized solution that
seeks to achieve the target portfolio exposure on a
timely basis.”
Over the past three years, Northern Trust Transition
Management has managed more than 1,200 transition events,
with a total value in excess of $160 billion.
More information about Northern Trust is available at www.northerntrust.com .