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Macro-trends impacting transition management

05 September 2011

Economic uncertainty is hitting transition managers asset allocation, and investment strategy, writes Maggie Williams

Read more: Transition management asset allocation

Institutional investors are increasingly reworking their investment strategies to embrace more diverse mandates, both in terms of asset classes and geographic spread. As a result, transition managers have had to evolve their practices to keep pace with clients' expectations.

Transition management is now a well established global practice and is particularly mature in the US, UK, Netherlands, Nordics (especially Denmark) and Australian markets.

Lachlan French, managing director and head of transition management at BlackRock points to rapid growth in Asia, continental Europe and some development in the Middle East and parts of Africa. “BlackRock are now carrying out transitions in all the major investment countries around the world – we might not have said that two years ago.”

Pension funds and insurance companies are the key users of transition management, both in its established markets and more emerging regions. For example, Russell Investments has recently been appointed to...