Best In Class
Pre-trade, Post-trade, & organization & Support
INStItutIoNAL* INVEStMENt MANAGERS**
Mellon Russell
BGI/BlackRock Credit Suisse
ConvergEx Group Goldman Sachs
toP RAtEd
CoMMENdEd
CoMMENdEd
CoNSuLtANtS
NoN-u.S.
Mellon
Citi
Russell
toP RAtEd
CoMMENdEd
CoMMENdEd
INStItutIoNAL*
BGI/BlackRock
ConvergEx Group
Mellon
INVEStMENt MANAGERS**
Credit Suisse
Goldman Sachs
Russell
CoNSuLtANtS
J.P. Morgan
ConvergEx Group
State Street
NoN-u.S.
Mellon
Citi
Russell
BGI/BlackRock ( 26 responses)
HIGH SCoRES: Access to liquidity;
Risk management ( 3. 73); Low
SCoRE: Explanation of fiduciary
role ( 3. 13); RISk SyStEM(S):
Internal/Proprietary, Barra
Overall, BGI/BlackRock’s scores
are above average in Pre-Trade,
Execution, Post-Trade, and Organization & Support categories. The
firm garners higher scores from
small clients than from large, but
scores in all client categories are
also above average. Institutional
clients give the firm Top Rated and
Commended scores in Execution, and Pre- and Post-Trade, and
Organization & Support areas.
A few clients express concern
about how the merger of the
two firms will play out but, so far,
legacy clients from both the BGI
and BlackRock camps indicated
having a positive experience. BGI/
BlackRock’s flexibility, creativity,
and partnership with clients are
key attributes highlighted in client
comments. Ability to act as a
fiduciary was also noted as a key
reason by some for selecting this
transition manager. “BlackRock is
very flexible and worked with us
to find creative solutions to our
specific needs,” notes a very large
public fund. “We have a long-standing relationship with BGI and
their transition management team.
We are hopeful that the merger
with BlackRock will not affect the
BGI transition team,” notes another
large client.
Citi ( 14 responses)
HIGH SCoRE: Interactions with
stakeholders ( 3. 71); Low SCoRE:
Accounting clarity ( 3. 29); RISk
SyStEM(S): Internal/Proprietary
Citi qualifies for rating with a
sufficient number of responses
from investment managers and
non-U.S. institutions. From the
latter client category, Citi wins
two Commended awards. In both
client categories, Citi’s scores are
above the survey averages, with
the exception of Post-Trade Services, where scores are slightly
below average. Most of Citi’s
survey respondents hail from very
large pension funds outside the
U.S.—particularly Australia, where
the firm has a strong local presence for transition management.
One large U.S. pension client
notes, “Operationally, they are the
best.” Another client says, “We
have had a long-term partnership with Citi, and our relationship
continues to go from strength to
strength.” Quality of the transition team in general, as well as
communications and access to
liquidity in particular are noted by
several clients.
ConvergEx Group
( 41 responses)
HIGH SCoRE: Confidentiality
( 3. 69); Low SCoRE:
Explanation of fiduciary role ( 3. 21); RISk
SyStEM(S): Internal/Proprietary,
Barra
Overall, ConvergEx posts scores
just above survey averages with
the exception of Organization &
Support, where overall scores are
significantly higher than average.
Institutional clients rate Con-
vergEx particularly highly in this
category, particularly for Timeli-
ness of Response to Inquiries.
The firm qualifies with enough
responses from institutional
clients, where it wins Commended
awards in the two survey catego-
ries. ConvergEx also qualifies in
the consultant category, where
it wins a Commended award for
Execution. Clients and consul-
tants are prolific in their com-
ments, and all are positive about
their experience with ConvergEx.
Many reference a long-standing
relationship with the firm, which,
in this space, can never be taken
for granted. “Excellent project
management and interaction
with managers and custodian,”
notes one corporate plan client.
“Efficient, responsive, on top of
the various parties, and commu-
nicating every step of the way,”
comments another. “ConvergEx
Group handles everything and
keeps you posted at each step of
the way,” says a third.
Credit Suisse ( 24 responses)
HIGH SCoRE: Access to
liquidity ( 3. 74); Low SCoRES:
Post-transition report timeliness;
Accounting clarity ( 3. 33); RISk
SyStEM(S): Internal/Proprietary
Credit Suisse garners enough
responses from institutional
clients as well as from investment
managers to qualify for ratings in
those client categories. Invest-
ment managers give Credit Suisse
high enough scores for Top Rated
and Commended awards in each
survey category. Overall, the firm
scores higher than average in
the Pre-Trade category, where
institutional clients, give Credit
Suisse particularly high scores.
“Good historical working relation-
ship,” notes one client. “We have
a great level of comfort with the
organization due to very strong
relationship management effort.
We also appreciate the strength
of the organization, as shown in
their ability to navigate the 2008
financial crisis,” notes another. A
third client says, “Credit Suisse
provides detailed pre- and post-
trade reporting, as well as creative
trading strategies to mitigate
trading costs.”
Goldman Sachs ( 14 responses)
HIGH SCoRE: Access to liquidity
( 3. 43); Low SCoRE: Explanation
of fiduciary role ( 2. 83); RISk
SyStEM(S): Internal/Proprietary,
Barra
Goldman receives a sufficient
number of responses to qualify in
the investment manager category.
Scores from investment managers
are high—well above average, in
fact, and Goldman receives Commended awards in both survey
categories. Investment managers
rate Goldman particularly well
in Post-Trade capabilities, and
specifically with regard to Clarity
of Post-Transition Analysis. Nearly
all of Goldman’s respondents,
whether on the pension fund or
investment manager side, were
from outside the U.S., but most
were satisfied with the service
they received. “They are truly
professional and make significant
SURVEY FINdINGS
*Corporate Plan Sponsors; Public, Taft-Hartley Plan Sponsors; Endowments, Foundations, Nonprofits
Investment Managers, Mutual Funds, and Insurance Companies
PLANSPONSOR.com Year in Review 2010 27
