Our pre-trade analysis allows us to develop a fully customized execution strategy. Our transition management team addresses our clients’ unique transition strategy requirements by performing extensive research into liquidity, volatility, market capitalization, sector movements, bid-ask spreads, and currency and cash flow factors to determine the most appropriate trading strategy.
We view managing the opportunity cost as the key element to a successful transition. While developing appropriate trading strategies to minimize transaction costs (i.e., commission, bid/ask spreads and market impact) is important, it is the costs that arise from the difference in returns between the actual portfolio and the target portfolio that will have the greatest impact on implementation shortfall. If this risk is not properly managed, the opportunity cost will far outweigh transaction costs.
Trading and Settlements
We use our 24-hour, agency-only, global trading desk to effectively and efficiently transition our clients’ assets, and leverage PGM’s broker and investment manager network as a source of liquidity.
Flexible Reporting Options
We offer flexible-reporting options tailored to our client’s information needs. This reporting allows for complete transparency and reduced operational risks. Furthermore, we provide timely and orderly settlement of the transition trades, which in turn minimizes any costs and risks involved with failed trades and settlement delays.
Upon completion of a transition, our clients receive a detailed post-transition report. This report audits all documentation and correspondence and provides a comprehensive cost analysis of the transition, comparing the final results to the pre-transition estimate.
We follow this post-transition analysis with a meeting to review the outcomes and answer any client questions.