Transition Management Services

Types of Trading Used by Mellon Transition Management Services

In-Kind Transfers
Rather than liquidating a portfolio wholesale and then beginning the process of constructing a new one, managers first examine the legacy portfolio and the target portfolio to determine which assets can be transferred in kind. This service is provided free of charge to the plan sponsor.

Internal Crossing
Both the buy and sell lists are crossed against assets in our internal crossing program. Our crossing algorithm identifies potential crossing opportunities across all portfolios. This service is provided free of charge to the plan sponsor.

External Crossing
Electronic crossing networks such as ITG's POSIT® are utilized to further increase crossing opportunities.

Agency Trading
Certain trades will be executed through a broker, acting as an intermediary, in order to take advantage of existing liquidity in the market. Principal Trading: Some trades will be executed directly with a market maker who commits capital in order to complete the trade.

Hedging
Various hedging instruments such as futures, options and swaps are used to limit undesirable or unnecessary exposure to market risk.

It is expected that transition trading will utilize a number of these styles in an effort to minimize trading costs. The following illustrates some of the types of trades that were used in an actual transition trade.^*

For more information, or to determine whether transition management is right for you, contact:

External crosses and Agency Trades are facilitated through MBSC Securities Corporation.

^*Past results are not necessarily indicative of future performance and are no guarantee that losses will not occur
in the future.  Amounts crossed and transferred in-kind will vary depending on the composition of the portfolios.