AF Advisors’ partner Saskia Leonard has published an article on transitions. In the article Saskia shares valuable lessons learned after 35 billion euros in transitions.
Every financial institution has to deal with it, a range of outdated investment products which needs to be re-organized. Through transitions, products are merged and converted into new and improved versions.
AF Advisors has now managed more than EUR 35 billion in transitions between investment products and portfolios. These transitions involved products and funds in many asset classes with various underlying instruments. The diversity in types of products, legal and fiscal structures, is large and there are regular cross border transitions, for example when it comes to a merger between a Dutch and a Luxembourg fund structure.
Managing transitions is a particular ‘trade’ in which specialized but also broad knowledge is needed. The specialism mainly covers the Operations department and specific areas including the Transfer agency, Accounting and Custody. External service providers also play an important role in every transition process. In addition, various other expertise areas are involved, such as the front office, legal & tax affairs, communication, compliance and (internal) audit. In order to successfully manage transitions, it is important to be able to keep a good overview of all these disciplines, with an integrated action list and planning with the right timelines and dependencies.