JAPAN - State Street has been appointed as transition manager for the YEN98.3bn (US$772m) Japan Travel Bureau (JTB) pension fund, and has already completed a portfolio transition utilising its agency-based transition management program.
“JTB is leading the adoption of efficient investment management tools and methodologies, such as transition management, to Japan's pension plans,” said Nicholas Bonn, executive vice president and head of State Street's transition management business. “We are pleased they have chosen to partner with State Street to assist them in achieving their portfolio investment goals.”
Transition management is designed to reduce market impact and cost during the process of restructuring an investment portfolio, undertaken when a pension plan or other institutional investor moves from one investment strategy to another.
The firm believes that it's agency-based transition management program is superior to principal-based programs, as it minimises both explicit costs, such as trading commissions, as well as implicit costs, like those incurred from the market impact of trading.
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