Transitioning your portfolio: mitigating risks and instilling immediate trust

When dealing with a manager change or portfolio restructuring, asset owners face the unwelcome potential of incurring significant losses from poor transition management. At Pavilion, we believe any loss through poor management is unacceptable.

As your transition manager, Pavilion will work closely with you to develop a customized strategy that aims to maximize asset retention and minimize risks and costs.

Recently ranked No. 1 for its track record disclosure by the Chief Investment Officer’s transition management survey, Pavilion’s transition management has a proven record of helping clients navigate through the different options available and to help them move assets from an undesirable structure to a performing one.

Our approach to transition management is one based on risk minimization as well as cost control for the client, with the ultimate objective of preserving the client’s capital, explains Mario Choueiri, Head, Transition Management, Pavilion Global Markets.

Pavilion’s team of seasoned experts is sensitive to the fact that higher costs can significantly erode a portfolio’s value therefore they strive to reduce them through lower commission rates and an appropriate execution strategy.

But most and foremost, Pavilion’s reputation is one of trust and transparency. Serious issues concerning confidence and disclosure have tarnished the industry over the years, adding to the uncertainty investors may already have when partnering with a transition management provider. Part of Pavilion’s work is building and maintaining a trust relationship with clients.

Everything we do is on an agency-only basis which means there are no conflicts of interest. The client can feel comfortable and at ease with what we are doing in terms of delivering the required results for them, says Choueiri.

Pavilion’s transition management team typically handles more than $10 billion in transitions annually.

The first step to building strong relationships is to perform an extensive analysis of the client’s unique transition requirements, which assists pre-trade predictive quality. Pavilion also takes pride in developing fully customized execution strategies, a core value that drives the quality of our overall client service. Flexible and tailored reporting options also ensure communication is fluid between managers and custodians throughout the transition process.

Being able to adapt on the fly is much more suited to satisfy client concerns than some of the more bureaucratic, large players, adds Choueiri.

In an industry where a minute can have a significant financial impact, Pavilion uses a 24-hour, agency-only, global trading desk and leverages its broker and investment manager network as a source of liquidity to effectively and efficiently transition a client’s assets.

So what’s the secret to successfully implementing portfolio changes? It all comes down to an approach based on minimizing risk, maximizing opportunity and working in the best interest of the client.

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© 2015 Pavilion Global Markets Ltd, Member CIPF and SIPC.