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Transition Management new

PGM’s transition management service helps clients move their current portfolio structure to the desired portfolio structure in the most efficient manner and at the least overall cost to the plan.

For over 20 years, we have assisted institutional investors and financial intermediaries in implementing portfolio changes – whether it’s to transition from one investment manager to another, alter an asset allocation mix, rebalance the portfolio for liquidation of positions or for any other reason.

We use our 24-hour, agency-only, global trading desk to effectively and efficiently transition our clients’ assets, and leverage PGM’s broker and investment manager network as a source of liquidity.

Advantages

PGM’s transition management service will:

  • Reduce costs through lower commission rates and an appropriate execution strategy
  • Control risks by managing the risk exposures (market, sector, industry, currency) and optimizing the order sequencing
  • Achieve efficiency by coordinating the communication between managers and custodians

PRE-TRANSITION ANALYSIS

Our pre-trade analysis allows us to develop a fully customized execution strategy. Our transition management team addresses our clients’ unique transition strategy requirements by performing extensive research into liquidity, volatility, market capitalization, sector movements, bid-ask spreads, and currency and cash flow factors to determine the most appropriate trading strategy.
We view managing the opportunity cost as the key element to a successful transition. While developing appropriate trading strategies to minimize transaction costs (i.e., commission, bid/ask spreads and market impact) is important, it is the costs that arise from the difference in returns between the actual portfolio and the target portfolio that will have the greatest impact on implementation shortfall. If this risk is not properly managed, the opportunity cost will far outweigh transaction costs.

TRADING AND SETTLEMENTS

We use our 24-hour, agency-only, global trading desk to effectively and efficiently transition our clients’ assets, and leverage PGM’s broker and investment manager network as a source of liquidity.

Flexible Reporting Options

We offer flexible-reporting options tailored to our client’s information needs. This reporting allows for complete transparency and reduced operational risks. Furthermore, we provide timely and orderly settlement of the transition trades, which in turn minimizes any costs and risks involved with failed trades and settlement delays.

POST-TRANSITION ANALYSIS

Upon completion of a transition, our clients receive a detailed post-transition report. This report audits all documentation and correspondence and provides a comprehensive cost analysis of the transition, comparing the final results to the pre-transition estimate.
We follow this post-transition analysis with a meeting to review the outcomes and answer any client questions.

Awards & Recognition


From Capital Finance International (CFI.co), a magazine based in the UK :

Best Transition Management Team North America 2020
Best Transition Management Team North America 2019

From CIO Transition Management Surveys, based on client feedback:

2019 – Ranked first globally in four categories: “Overall Satisfaction”, “Percentage of Extremely Satisfied Clients”, “Disclosure of Performance vs Benchmarks” and “Transition complexity”. It also ranked first in Canada for the first three categories.
2018 – Ranked at the top of the charts, globally and in Canada, for the percentage of clients who are “extremely satisfied”, and for “overall satisfaction”. PGM’s #1 ranking for “overall satisfaction” globally and in Canada is a repeat of its 2017 performance in the same survey. In 2018, PGM also repeated its #1 ranking in Canada for its “disclosure of performance vs. benchmarks”, a category it has dominated since 2015.
2017 – Ranked Number 1 in Three categories. Ranked in first place, globally, for Overall Satisfaction, scoring 4.67 out of 5 with two-thirds (67%) of responding clients describing themselves as “extremely satisfied.”
2016 – Ranked No. 1 for client satisfaction in the U.S. and Canada. PGM also offered clients the lowest total cost estimate among six global providers.