Callan Associates

Trust, Custody, Securities Lending, and Transition Management Services

Callan Associates was the first in the investment consulting industry to dedicate resources in the area of trust, custody, securities lending, and transition management consulting services beginning in 1991. Since inception, this group has completed project assignments for clients with aggregate assets above $1.5 trillion.

Trust and Custody

Clients have engaged us in projects ranging from best practice and fee reviews to due diligence searches involving multinational "Super Master Trust" arrangements and the safekeeping of central bank reserves. We have also been engaged by a number of prominent corporations to help them during the consolidation of pension plans and the ability to deploy DB & DC unitization solutions. We have also assisted public funds to rationalize custody fee structures and determine best in class deliverables. Numerous university endowments, foundations and high net worth clients partnered with us to craft solutions to achieve a total risk management approach in the administration and management oversight of the investment structures. Mutual fund boards and Investment management organizations have also sought our guidance to gain better cost and operating efficiencies that satisfy internal best in class, best practice initiatives.

Securities Lending

Securities Lending review and evaluation is also an important core competency of Callan Associates because a majority of our clients participate in a securities lending program. They do so in one of three ways; by directly using their custodian; by using a single or multiple third party providers; or, by investing in a commingled fund which uses securities lending in an effort to improve and/or reduce fees. Callan believes that revenue generated from securities lending should be understood relative to the asset/liability characteristics inherent in the transaction and, most importantly, the management of risks associated with securities lending, namely: borrower/counterparty default, trade settlement (recall), operational negligence, and cash collateral reinvestment risks.

Transition Management

Transition Management is utilized for purposes of portfolio liquidation, benchmark or manager changes, asset allocation shifts, portfolio rebalancing, and other pertinent restructuring requirements of designated investment portfolios or company stock (single stock portfolios). Regardless of what the purpose is to a fund sponsor, transition management should be treated as short-term asset management that requires prudence and investment discretion. Transition management can not be relegated solely as a trading activity, but requires the skill and judgment of any investment fiduciary. Callan Associates has assisted clients in due diligence searches for transition managers and/or developing transition pool of provider solutions to effectively manage such events.