Administration July 21, 2011

TABB Offers Insights for Transition Managers

July 21, 2011 (PLANSPONSOR.com) – In a survey of 105 public and private pension funds, endowments and foundations across the United States and Canada, nearly 40% of the investment officers contacted told TABB Group that they sought the advice of an investment consultant when selecting a transition manager.
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Those who did not seek assistance opted for an internal due diligence process (69%), a pre-existing relationship (20%) or a custodian (17%), TABB said in a report on transition management industry issues.  

According to the investment officers, equitization (27%) and interim management capabilities (42%) are viewed as the two most valued parts of a transition manager’s services.   

Based on the 105 contacts, TABB said it believes that transition managers can differentiate themselves through asset-class expertise, specifically fixed income, emerging markets and illiquid securities; hands-on service and by building individual relationships with plan sponsors and their teams; efficient project management, by delivering daily updates, progress reports and trade status; and commitment and trust built on quality of service.   

The report is available for download by TABB Group Research Alliance clients at https://www.tabbgroup.com/Login.aspx.

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