The complexity and potential costs associated with the termination of an investment manager are among the greatest operating costs a pension plan can
incur. Transition costs for equity portfolios can be 4r more of the portfolio's value. These high costs are borne directly by a pension plan's participants, which have sparked the rise of professional transition managers.
Transition managers are the administrative and trading experts charged with minimizing the cost of replacing investment managers.
Significant debate surrounds the reporting methods utilized by the top transition service providers. The lack of industry standards results in subtle to significant differences in the way that providers report their performance. QSG's TV application provides an efficient way to quickly conduct due diligence on a transition provider and helps plan providers to develop a performance baseline for future transitions. "This service was designed to eliminate the calculation inconsistencies that are a source of confusion in the manager transition process," said Tim Sargent, President of QSG, "it also inspires additional confidence in the transition managers providing these valuable services."
At the center of QSG's transition verification service is an advanced software solution developed by QSG's team of quantitative analysts and software architects. The TV software methodically gathers and manages the diverse datasets required to verify the success of a manager transition.
The service provides a comprehensive set of benchmark comparisons, detailed trade examination and a sophisticated cost attribution analysis via both
the on-line application and a series of hardcopy reports. Plan sponsors, consultants and transition managers can all benefit from this thorough, independent audit that enhances confidence and neutralizes any numerical 'spin'.
The experienced staff that delivers QSG's other institutional trade analysis products backs the new transition verification service. Investment managers
have embraced T-Cost ProÂ® as the only trade analysis service that spots order front-running, improves execution strategy development and evaluates the value of algorithmic trading techniques. Access to this staff assures that a team on the front-line of advanced trade analysis is supporting clients of the T-Verification service.
QSG is not a broker/dealer and does not accept engagements as a transition