Portfolio Management – Transition Management

Ensure transparency, maintain control, mitigate costs

In periods of weak earnings it is all the more important to avoid unnecessary costs and risks. Major portfolio restructurings, such as those that are typically required when switching asset managers, are particularly risky. Management of risk and performance may be hampered during the transition phase and costs may mount as a result.

Of these costs, only about 20% on average are explicit, while 80% are implied and difficult for investors to determine. This is where professional transition management comes into play: risk management and transparency can be guaranteed throughout the transition process and up to 60% of total costs saved. See more under Services.

Investors benefit from transition management in the following situations:

  • a termination of asset manager or consultant
  • a switch of asset manager or consultant without successor (interim management)
  • an asset manager switch in one or more segments
  • the launch of a segment or portfolio with cash or existing assets
  • the liquidation of a fund or segment after a termination of asset manager or consultant
  • the allocation adjustments within a master fund or between different master funds
  • a new strategic asset allocation (SAA) under consideration by investor
  • a review of the implementation of a SAA with funds

Transition Management with Universal-Investment

Universal-Investment has extensive expertise in transition management, with more than 15 years’ experience in the sector. Investors have repeatedly placed their trust in us, with 275 mandates and a volume of around 95 billion euros (as of March 2020). Clients benefit from first-class transition management from start to finish, in seamless combination with our master KVG services.

Transition solutions are tailored to our investors’ individual needs and to their portfolio. The scope of services offered by Universal-Investment and our role vary as follows:

Let’s talk about how we can optimise the transparency, control and costs of your portfolio restructuring. We look forward to sharing our ideas with you.