Bloomberg Virtual Panel RECAP featuring CAPIS: Trends in Asset Allocation and Transition Management
CAPIS Insights
CAPIS Insights
posted by CAPIS on 07/21/2021 at 2:32 pm
by CAPIS on 07/21/2021
Featuring Ben Jenkins, CAPIS, Jonathan Kowolik, RVK and Constantin Cosereanu, Bloomberg LLP Presentation Summary (with timestamps) Click here for the video presentation Trends in Asset Allocation and Transition Management (1:45 – 10:05) Asset owners have lower expectations for global equity & fixed income with focus on style Maintaining one or more TM providers is a common ‘best practice’ The allocation shifts lead to increased usage and demand for transition management (TM) While Transition Management volumes declined in 2020, 2021 has seen a surge of activity US Equity Rebalance Case Study (10:06 – 21:15) Asset owners generally know the high-level characteristics of their trade, but it’s hard to identify the risks Using a system like Bloomberg PORT can help identify risk contributions Top-down factors may not best identify the ‘real’ risk of a TM trade PORT can help identify individual risk elements which are not clearly identified by just looking at top-level elements (ex: Travel+Leisure only 2% of trade, but 16.5% of risk) ETF/Portfolio Creation Case Study (21:16 – 33:48) PORT can help identify the ‘true’ and available liquidity for assets, especially ETFs which have hidden liquidity (due to creation/de-creation) Historic execution timing may be useful to understand…