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This is the
management of the movement of assets from one investment manager to
another. It is usually conducted when trustees decide to
alter a retirement fund’s strategic direction or asset allocation.
It is also important when managers are replaced or retirement funds are
re-balanced between managers. |
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The most cost-effective way of moving
assets from one manager to another is by maximising matching. Matching
takes place when
assets held in the original retirement fund are matched with those that
will be held in the new retirement fund. The assets are then transferred
directly from the original retirement fund to the new one without going
through the open market, thereby reducing direct and indirect costs
during transition |
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During
the transition process, some costs are incurred that can negatively
affect retirement funds’ investment returns. Through its unique approach
to transition management, Investment Solutions aims to control and
decrease these costs. |
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Investment Solutions is the
only SA company that offers transition management whereby the remaining
unmatched (residual) assets are compared with the assets held across all
the investment portfolios on the company’s balance sheet. This allows
for a significant increase in the level of matching during transition.
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