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Risk Management

Are you optimizing your risk management? We can help.

You can’t avoid the risk inherent in a transition, but with the right partner you can reduce the risk your portfolio is exposed to. Our global transition management team is the experienced and client-focused partner you need.  We are able to help you recognize the risks—execution, operational, investment and currency—and provide you with the resources and solutions necessary to reduce those risks.

We will help you develop and execute an effective, customized transition strategy to:

Measure Risk— We understand how complex the process of portfolio transition is and how critical measurement is to achieving your goals. We can pinpoint potential sources of risk using measurements that begin with calculating the tracking error between the target and legacy portfolios and then identifying this measure at the asset, country and industry levels.

Manage Costs — Before trading even begins, we use our sophisticated analytics to estimate trading costs and identify positions that will be particularly difficult to trade. With this insight and our expertise we’ll help you control the implicit and explicit costs of trading. As a final assurance for a successful transition, we measure outcomes against clear benchmarks outlined in the planning process.

Offset Risk with Hedging Strategies — We will employ hedging strategies to mitigate your risk when immediate entry into the target structure is not possible and you’re exposed to a large degree of opportunity cost. Based on your requirements and preferences, as well as the asset value you’ve invested, the time period those assets would require at that exposure, and the cost comparison of each alternative product, we will work with you to select an appropriate vehicle to provide exposure.

Utilize a Transition-Specific Algorithm — Our transition optimization algorithm, TOPxSM, is a unique offering within the agency space. Using TOPx, we’re able to design your transition strategy to optimize the trade-off between market impact and opportunity costs. And this is real-time optimization, because TOPx reacts dynamically to the progress of execution and volume trends in the market on the day of execution.

To learn more about our risk management capabilities, please call:

Click here for more information about our Global Transition Management Services.