Pavilion Global Markets (formerly Brockhouse & Cooper)
Pavilion Global Markets' transition management division operates as a distinct business. Transition trades are executed by a 24-hour, global agency trading desk.
The firm considers its 15 years of transition management experience in over 40 markets, its extensive trading network of institutional clients and agency-only trading desk among its key differentiating factors.
Size of transitions
In the past 12 months, Pavilion has executed 97 transitions with a total initial portfolio value of C$13 billion, with an average transition size of C$2.7 billion, while the smallest was C$3.7 million.
Hedging strategy
The firm seeks to control risk and costs during a transition by using derivatives and exchange traded funds as hedging instruments.
Use of crossing
Pavilion’s 24-hour, global trading desk provides crossing opportunities with a network of institutional investment management clients.
The firm only uses crossing when it would reduce both market impact costs and portfolio risks to the transition client, with the overall aim of lowering implementation shortfall.
Reporting
The firm offers tailored reporting, based on a client’s information needs. These include a pre-transition cost analysis, intra-day updates and daily execution reports that include the transition completion rate, current implementation shortfall, and a post-transition analysis report that includes qualitative and quantitative analysis. Transition reports are delivered, in person, by phone and email.
Benchmarks
Pavilion uses implementation shortfall to measure transition management performance. Upon client request, the firm can also provide performance analysis against a customised benchmark.
Fiduciary duties
Pavilion is a member of the Canadian Investment Industry Regulatory Organisation of Canada and US’s Financial Industry Regulatory Authority. The firm ensures transitions are conducted with the degree of care, diligence and skill that a reasonably prudent transition manager would exercise.