Asset Reallocations During Turbulent Times
Key Issues to Consider When Planning a Portfolio Transition
Michael Iannucci – Head of Transition Management Email >
Ian Leverich – Managing Director Email >
Doris Pradieu – Senior Vice President Email >
Abel Noser Holdings
December 7, 2020
- Timing –What are my start-to-finish timeline requirements?
- Methods – Do I go DIY (“do it yourself”), or do I need to hire professional movers?
- Costs – What are the explicit costs? What are the less obvious costs?
- Risks – Operationally, how do I ensure my assets are moved safely to their new home?
- Obstacles – Are there potential pitfalls that I may be missing?
- As fiduciaries, asset owners are not expected to have a crystal ball. Rather, the metric for evaluating prudence is process and planning.
- The hallmark of a successful transition is defined by the ability to manage risks and preserve asset value.
- The TM should act as the quarterback who makes sure everyone (client, traders, custodians, and managers) is up to date with the process. The TM should also make sure all parties know what’s expected of them, and when it’s expected.
- Engage a partner with aligned interests. They should be highly communicative, providing a bridge of transparency that connects all parties involved.
- When reallocating assets during uncertain times, it’s crucial to understand the many potential risks and engage a TM partner who can help plan accordingly to minimize costs while improving outcomes.
- The golden rule, in both asset allocations and in moving, is that planning pays off.