Controlling Costs on Fund Transitions
Managing the effect and cost of transactions can prove complex and troublesome in even the simplest investment environments. Consider how saving a couple of percentage points of a investment’s value on transactions can return double figure growth over its time horizon and the benefits of skilled transition management come sharply into focus.
RisCura helps investors and investment managers manage the risks, costs and complexities in major transactions, enhancing performance, reducing risk exposure and keeping client communication relevant and straightforward.
Taking a holistic view of the entire transition process, we manage myriad transactions in a systematic, risk-controlled manner and across multiple asset classes, including:
- Moving an entire fund
- Changing a fund’s asset allocation
- Rebalancing a portfolio
- Mergers and acquisitions
- Transitioning from defined benefit fund to defined contribution fund.
Remaining separate and distinct from the brokers we select ensures we maintain an impartial and balanced view that serves our clients’ interests at all times. As a completely independent transition manager, without links to or interests in any brokerage houses, we select from a stable of best-of-breed brokers that are market leaders in a specific sphere of operation. This allows us to support our clients’ interests in assessing which providers are best placed to handle specific portions of a trade portfolio – ensuring superior access to liquidity, minimising cost-impact and significantly reducing risk exposure.
Transition Project and Risk Management
Whatever structural changes you require in transitioning funds, you need to be sure costs are kept to a minimum, while safeguarding your investment from exposure to undue risks.
As a truly independent project manager, we turn any transition into a disciplined, integrated process, managed by specialists who oversee all responsible parties at every stage. Of course, transitions can prove complex and may take time to conclude. So we undertake to walk you through everything step by step, reporting on a regular basis and keeping you informed of progress and potential impact on your portfolio.
Although a transition audit would be a natural step in our project management, we also provide audit services that lend an external, independent view of any transition project, ensuring our client’s interests are adequately protected. This provides a valuable ex-post assessment of costs incurred, processing errors, and the impact of the transition or structural change on the portfolio’s performance.
Making Sure Your Bases Are Covered
Executing major changes to a portfolio’s structure can be costly at the best of times. Ensuring the process is cost-effective while risks are closely managed, simply requires talking to us about your transition needs.