Transition managers, pension funds, consultants, fund of funds, managed funds, platform providers and the insurance sector examined the key issues driving change and the transition solutions available to the pensions and investment industry at FTSE Global Markets' Transition Management Seminar.
As a facilitator of change it is perhaps not surprising that Transition Managers find themselves at the fulcrum of the evolution taking place in the investment industry. Change is occurring both in terms of where demand for transition managers is originating and also in the types of transitions that are taking place. Whilst the transition business in Europe from pension funds is now relatively consistent, and for the biggest users dominated by panels, most managers are seeing current growth from managed funds, fund of funds and the insurance sector. In the medium to long term the future of the transition management sector lies with the defined contribution sector. Fund managers across Europe are having to employ a multi-asset approach that allow the asset allocation to change as members near retirement. With the first DC pensioners coming online in Europe and retirement patterns changing, fund managers are developing new solutions for the pay-out phase, such as through retirement funds. Insurance companies currently dominate business in the pay-out phase, but changing regulations should allow fund managers to capture a greater share of business. Increasingly the larger providers will also create platforms which allow access for smaller distributors and third parties that do not have the power or resources to develop their own pension solutions nor the ability to attract sufficient assets through wrapped products of their own. The switch from defined benefit to defined contribution will present Europe's transition managers with a large number of new challenges but also the opportunity to be at the centre of one of the largest changes ever to take place in the pensions and investment sector.
The seminar brought together transition managers, pension funds, consultants, fund of funds, managed funds, platform providers and the insurance sector in order to examine the key issues driving change and the transition solutions available to the pensions and investment industry. Presentations from Key speakers can now be found by clicking here.
Transition management in an era of change
The transition management service set is broader these days. Market challenges abound. Transparency is vital in volatile markets and when extreme changes in asset allocation often call for innovative approaches to portfolio transitions. A strong platform also helps. Michael S Gardner, managing director, global head, J.P.Morgan Transition Management, looks at the problems and prospects for the service set in an era of change.
For more videos on Transition Management, please click here.