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The T Ratio
Helping you evaluate and compare transitions

What is the T Ratio?
The T Ratio is designed to complement the T Standard by giving you a context to evaluate and compare transitions that differ in complexity, particularly in terms of size and risk. Learn more about the T Standard.

The T Ratio standardizes post-transition implementation shortfall and compares it to the original pre-transition estimate by adjusting the shortfall for the transition event risk.

Your benefits
Any measurement of risk-adjusted performance should have three essential characteristics. It should be simple, objective and transparent.

The T Ratio can be a very useful metric to help you analyze already-completed transition events and in preparation for proposed transition events. The T Ratio can help you:

 
  • Compare your event's implementation shortfall to a composite of other events you have completed with us, adjusted for event risk and transition size.

  • Compare your event's implementation shortfall to a composite of similar events.

  • In the course of a relationship review, analyze the aggregate risk-adjusted results of all of your transition event outcomes.

  • During the pre-transition planning process, evaluate your estimated implementation shortfall to a historical composite of events with similar characteristics.

We are constantly looking for ways to reduce risk, improve investment performance, and bring innovation and transparency to the transition management industry.

The T Ratio gives you an opportunity to analyze transition events within multiple contexts of varying risks and costs.



To learn more about the T Ratio and our capabilities in portfolio transitions, please contact David or Gerry:

   

West Coast

David Rothenberg
David Rothenberg
Managing Director
866-926-5934

East Coast

Gerry Lillis
Gerry Lillis
Director
866-459-4128






Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Russell Implementation Services Inc., member FINRA, SIPC. www.finra.org

Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

USIMSLRC3038


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Related Information
Understanding the T Standard


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