Transition management now ‘made simple’ for trustees and pensions managers | Pensions and Lifetime Savings Association

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Transition management now ‘made simple’ for trustees and pensions managers

07 October 2010

A new guide is being published today (Thursday) by the National Association of Pension Funds (NAPF) to help pensions trustees and pensions managers get to grips with Transition Management.

Transition Management is the process through which a pension scheme changes its asset/investment structure. It is often characterised by a planned replacement of one or more fund managers in a timely, risk controlled and cost-effective way to preserve fund value.

The guide, Transition Management made simple, is sponsored by J.P. Morgan, and is an important addition to the NAPF’s popular made simple series. It offers key information on planning, strategy development, execution and post-trade settlement in a clear and straightforward way. In particular, the guide covers:

· What are the risks?

· What are the costs?

· Performance measurement

· Checklist of questions

Joanne Segars, Chief Executive of NAPF, said:

“Pension funds don’t restructure their assets very frequently, but when they do, the process can be costly and risky.

“Our new guide seeks to provide trustees and pensions managers with relevant information that will help them better understand the transition process.”

Benjie Fraser, Practice Lead for J.P. Morgan Worldwide Securities Services’ pension fund business in Europe, said:

“Transition management is increasingly viewed as industry best practice for asset owners, particularly pension funds, in making changes to their investments.

“This new guide clarifies what is involved in each stage of the transition and helps pension funds ask the right questions in selecting a transition manager.”

The Transition Management made simple guide will be officially launched at the NAPF’s Annual Conference in Liverpool (NAPF stand) at 5.40pm on Thursday 7th October (today).

The guide (hard copy) costs £18 for NAPF members and £35 for nonmembers.

It can be ordered online Bookshop

Download printable version