Portfolio Management – Services

Portfolio management services

Indispensable: efficiency and transparency

Professional portfolio management services such as collateral pool and transition management are important factors for making investments more efficient. They help institutional investors manage their investments efficiently and in a way that optimises risks and costs. Particularly when it comes to transition management. Other services include securities lending, liquidity management and trading.

Source: Universal-Investment

Collateral pool management

Used in particular for segmented master funds. If OTC derivatives are used for multiple segments within the master fund, the collateral required to hedge the derivatives is sourced from a central collateral pool. The collateral pool segment is to be understood as active liquidity management within the master fund. In addition to cash, money market products and government bonds from selected countries can also be used.

  • Daily calculation of the profits and losses generated by the derivatives used for cash management purposes
  • Investment and outsourcing of cash in hand to selected counterparties
  • Same-day investment in money market funds in order to reduce negative credit interest or acquire fixed-interest securities in accordance with the agreed investment guidelines
  • Realisation of netting effects at the level of the master fund
  • Reduction in the number of securities transactions
  • No dilution of performance in the asset manager segments as a result of collateral effects

Transition management

The top priority of transition management is to identify cost drivers within restructuring and to avoid or eliminate them if possible. The benefits of the economies of scale with respect to fees and the reduction of implied costs such as spreads, market impact and opportunity costs are important factors for successful transition management by Universal-Investment. Ongoing reporting, including pre-trade and post-trade checks, also create a high level of transparency and complete the range of services. The goal is always to shape transactions to ensure they are planned, controlled and cost-effective for investors.

With 275 transitions and a transition volume of approximately 95 billion euros (as of February 2020), investors have demonstrated their confidence in Universal-Investment’s comprehensive expertise as a transition manager and in its long-standing and successful partnership with leading global transition management specialists. Universal-Investment fulfils a variety of roles in this regard:

  • Transition Manager: Comprehensive and transparent implementation of the transition, taking best execution principles into account
  • Transition Project Manager: Advisory, monitoring and managing function when selecting external transition management specialists and the measures implemented
  • Transition Interim Manager: Support during a planned switch to a new asset manager with respect to minimising transition risks

Let's have a conversation about portfolio management services in order to make your capital investments more efficient and transparent. We look forward to sharing ideas with you. – Contact