A new guide has been published by the National Association of Pension Funds (NAPF) to help pension funds fully understand transition management and what to consider when choosing a transition manager.
Transition management – the process of managing changes to a pension fund’s portfolio of assets – has attracted more attention in recent years. The Financial Conduct Authority (FCA) published, in February 2014, the findings of a review into transparency management, which highlighted the importance of transition management, but also the need for more rigorous governance by investors and improved transparency and communication at some transition management firms.
Transition Management made simple looks at the benefits of transition management, the costs and risks involved and how to mitigate and manage them. It also helps pension funds decide whether they should employ TM, and provides tips on choosing a suitable manager.