State Street Global Markets – the trading arm of the Boston-based custodian bank – claims that its transition management group in the United Kingdom has completed transitions for the local authority pension funds of the London Borough of Lewisham, the Corporation of London, the London Borough of Havering and Norfolk County Council.
Last year, says State Street, it completed more than 800 transitions worth £156 billion. “We have seen a large increase in local authority transitions due to a number of factors: recent performance of pension funds has often been a catalyst for reviewing investment management style and arrangements,” says Lachlan French, head of transition management for State Street Global Markets. “In addition, we also continue to see a strong endorsement of our services by the investment consultant community as they recognize the value State Street brings to the process. We understand the specific needs of local authority pension funds and work with them to address their requirements. Our presence in this sector has been enhanced as a result of the appointment of Toby Goold as director of sales focusing on this area.
We are delighted to have successfully transitioned such a significant number of local authority assets in 2004 and look forward to further demonstrating our expertise in this area.”
State Street says London Borough of Lewisham transitioned from a balanced to a specialist approach, and that the fund was advised by Hymans Robertson. The Corporation of London was advised by John Woods & Associates. The London Borough of Havering transitioned from a balanced to a specialist approach, with the advice of PSolve Asset Solutions. State Street was appointed in the fourth quarter of 2004 and the transition was completed in the first quarter of 2005. Norfolk County Council was advised by Hymans Robertson.
“Our transition was complex with many parties involved. State Street completed the transition with a risk controlled, cost effective approach. Overall the transition was a significant success,” says Janet Senior, acting executive director for resources, London Borough of Lewisham.
The 80-strong transition management at State Street Global Markets operates from London, Boston, Sydney and Tokyo.