Asset transfers can be complex and expensive events. Transitions have potentially significant risks and costs, therefore, their oversight requires considerable experience and knowledge to ensure a controlled and cost-effective result.

The Mercer Sentinel Group has a market-leading range of transition manager solutions to assist and advise clients on all aspects of transitions.

We focus on identifying, analyzing and controlling risks and costs. Our extensive global experience with trading and supporting transition operations, such as custody, payment systems and securities settlement infrastructure, enables us to assist clients in identifying and addressing potential issues and complications prior to starting a transition. In addition, our expertise helps clients structure and compare methodologies and providers to minimize cost and risk.

Our full range of services covers clients large and small, simple and complex, hands-on and fully outsourced.

Mercer Sentinel's transition consulting services spectrum  

Global transition manager research

The Mercer Sentinel Group has a truly global transition manager research capability, which encompasses ongoing proprietary research, qualitative analysis and a benchmarking framework with historical performance analysis. Using existing global knowledge and expertise of our full-time transition consultants, we have designed a comprehensive transition manager research platform that leverages our local market experience, technical competencies and analytical capabilities.

The Mercer Global Transition Manager Database contains data and research on local and global transition managers in accordance with a proprietary 10 factor analytical framework. This benchmark focuses on the attributes and controls that distinguish well run, efficient and controlled transition managers from those that could expose a client to increased risks and costs.

Allied to this benchmarking and database methodology are extensive and comprehensive on-site due diligence visits wherever trading, operations and controls are located. 

Pre-transition risk and strategy assessment

Mercer Sentinel works with investors, along with the outgoing and incoming managers to determine expected needs and priorities during the transition, identifying key risks and potential issues. Based on this pre-transition strategy assessment, Mercer Sentinel advises investors on potential approaches to the transition and work with our clients to identify the most appropriate strategy. 

Identifying and evaluation transition manager candidates

Using our proprietary best practice framework; Mercer Sentinel evaluates the global universe of qualified transition managers. This evaluation enables clients to identify a short list that best meet the client needs. The entire analysis is done using Mercer Sentinel's proprietary research and analysis, which prevents information leakage.

Bid solicitation, cost evaluation and risk identifications

Once the transition manager finalists have been identified, Mercer Sentinel solicits bids and obtains cost and risk estimates from each finalist manager. This mandate-specific evaluation includes competitive evaluation of each candidate's specific cost proposals, a projection of risk and an assessment of proposed trading strategies.  

Post-transition reporting

Following the transition, Mercer Sentinel independently assesses the transition manager's performance. This analysis also includes qualitative factors, such as client service and quality of communication and reporting and will enable a judgement to be made on whether the transition manager has completed the transition to a satisfactory standard. 

Transition manager panel

For clients carrying out regular transition manager selections, Mercer Sentinel assists in establishing a panel of pre-approved transition managers with fully negotiated contracts and terms of appointment. The panel enables the investor to move quickly in restructuring events and focus on each transition's strategy, controls and costs rather than reviewing the entire marketplace each time.

A transition manager panel is initially established through a traditional search process using our 10 factor analysis with a focus on transition manager skills, areas of expertise and internal controls. The panel is regularly reviewed through ongoing research and monitoring. Our transition consulting provides clients with formal annual due diligence analysis and interim news alerts if there are material changes during the period. 

Transition implementation – Australia

For clients in Australia, we offer full transition implementation services. Mercer Sentinel’s role as transition implementer encompasses all facets of the transition process including:

• Initial planning
  
  
• Implementation
  
  
• Negotiating preferential arrangements
  
  
• Reconciliation and reporting

We become the single point of contact for all parties involved in the transition, keeping our clients and their advisers up to date on progress; overseeing the trading conducted by brokers; resolving unit pricing and operational issues with the custodians; and ensuring investment managers are receiving accurate, on-time information. Mercer Sentinel’s position and influence in the Australian market and the sheer volume of transitions we undertake allows us to secure highly competitive arrangements for our clients without compromising the quality of trade execution.  

Transition coordination – UK

For European clients' with limited trading requirements, we offer the expert knowledge to help transfer portfolios in an efficient and risk-reduced manner. Mercer Sentinel continues to be the only consultancy to provide clients with a fully dedicated team to help project manage a client through all stages of a transition.

For each project, we assign a dedicated transition coordinator to plan, implement and provide a post-transfer review. All team members have strong project management skills complemented by an extensive knowledge of investment manager products and requirements. Using a range of techniques including in-specie transfers and pre-investing, the team aims to reduce both explicit costs and out of the market exposures. 

IMPORTANT NOTICES

Proprietary and confidential
This contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity, without Mercer's permission.
Opinions – not guarantees
The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed. Past performance does not guarantee future results.
Not investment advice
This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances.