GLOBAL - Mercer Investment Consulting has launched a new transition consulting service, with what it says is the market's first truly global transition manager research capability.
Its Mercer Sentinel group is a group of specialists with focusing on analysing transitions and assisting investors with transition-related issues.
The firm's Global Transition Manager Database contains data and research on local and global transition managers in accordance with a proprietary 10-factor analytical framework, covering over 150 standards and criteria.
This benchmark focuses on attributes and internal controls that distinguish well-run, efficient 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 onsite due diligence visits wherever trading, operations and controls are located.
"A transition can be the largest one-off operational cost to which investors will be exposed, and the risks can be quite significant," said Stacy Scapino, global leader of the Sentinel group.
"Transition oversight requires considerable experience, expertise and knowledge to ensure a controlled and cost-effective implementation and to avoid erosion of alpha."
A transition manager panel is initially established through a traditional search process using Mercer's 10-factor analysis with a focus on creating a team with complementary skills that address an investor's particular needs. The panel is regularly reviewed through ongoing research and monitoring, utilizing dedicated resources.
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