THOUGHT LEADERSHIP
Stuck between a rock and a hard place?
A
Chris Adolph, director, customised portfolio solutions EMEA at Russell Investments considers the value of having interim portfolio management expertise imbedded in transition management capabilities. CASE STUDY
Emerging Market Debt Interim Mandate
SOLUTION
IMPACT
Interim management mandate/ Global Emerging Market Debt
Traded with 27 unique dealers via multi-venue approach. Executed prices 50 bps lower than avg. bid/ offer
REDUCE T/E TO <50BPS MINIMISE TURNOVER MANAGE FOR 4-6 MONTHS
After appointing a manager to a new active emerging market debt mandate, the whole of the asset manager’s EMD team was taken over by another asset manager.
REPORTING
ON GOING MANAGEMENT
NAV CALCS
Not wanting to leave the mandate with the outgoing team, the client contacted Russell Investments for an interim solution while they did a new manager search.
Transition Management Guide 2023
Rebalancing:
INTERIM STRATEGY
e600m Emerging Market Debt rebalance & Interim
Portfolio was restructured to a lower risk target and managed on an interim basis for five months.
Maintained tracking
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OVERVIEW
We were able to agree terms, and complete legal and operational set up, complete with full due diligence, all within six weeks.
s long as transition management has been around there have been clients asking their transition managers to do more than just transition portfolios. The transition manager has extensive trading, operational and project management skills, but at its core we still see transition management as primarily a portfolio management exercise. As such, it is no surprise when clients approach us asking for advice on what alternatives are available to them if they need to exit an existing investment
PERFORMANCE
DAILY MONITORING
ATTRIBUTION
REBALANCING
ESG
CASH FLOWS
20th June 2022
1st August 2022
Client informed of full manager turnover
Russell Investments appointed interim manager (subject to completing due diligence) & sent due diligence questionnaire
0
11
31
35
43
5th July 2022
5th August 2022
17th August 2022
Investment committee approve interim solution
Russell Investments complete due diligence questionnaire
Russell Investments responds to due diligence follow up questions and signs off requirements
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