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Products October 27, 2009
Northern Trust Issues Transition Management Analysis
October 27, 2009 (PLANSPONSOR.com - Northern Trust
has introduced a new pre-trade analysis report for transition
management designed to help institutional investors evaluate
the potential costs and risks of switching investment
managers or changing asset allocation policy.
Reported by Fred Schneyer
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 .