RIVERFRONT INVESTMENT GROUP APPOINTS CITI AS SEPARATELY MANAGED ACCOUNTS OUTSOURCER
Mandate Includes Over 4,000 Accounts with $1.5 Billion AUM
New York, NY - January 28, 2010 – Citigroup today announced that it has been appointed by RiverFront Investment Group as Business Process Outsourcer for its retail separately managed accounts. RiverFront’s SMA business comprises over 4,000 retail accounts, totalling $1.5 billion in assets under management. Citi will be assuming services from RiverFront’s previous outsourcer.
"Due to the rapid growth of our SMA business, we need systems and expertise that provide more advanced features and capabilities," says Peter Quinn, RiverFront’s Founding Partner and COO. "Citi’s OpenSMAsm platform provides us with several unique features that allow us to accommodate the increasing scale of our business - automated trade order management, step-out processing, Multi-Style Portfolios (MSP) and Unified Managed Accounts (UMA) capability, fixed income automation and especially seamless connectivity to all our sponsor firms. We were looking for advanced tools and technology that could handle our growing business and Citi OpenSMA features and connectivity really impressed us."
"We are very pleased that RiverFront has selected us as its SMA service provider. RiverFront’s unique managed account products have demonstrated fantastic growth," says Neeraj Sahai, Global Head, Securities and Fund Services, Citi. "It is gratifying that they recognize the Open SMA platform’s abilities to deliver scale, fully automated technical systems, institutional quality trade order management, and the innovative features to service RiverFront’s unique asset allocation models and product offerings as well as the rapid pace of their growth."
OpenSMAsm is a tightly integrated end-to-end operations platform that is the foundation of Citi’s SMA capabilities. OpenSMAsm automates key functions and adds value through:
- Portfolio manufacturing, modelling, maintenance, automated restriction and tax management tools
- Automated trade blocking and execution with an institutional quality OMS that scales to hundreds of thousands of accounts
- Sponsor connectivity to over 95% of the SMA sponsor community with automated step-out trade, settlement and reconciliation capabilities
- A single platform to support single contract, dual contract and DVP accounts
- Electronic trade routing with time stamps on all trades for best execution reporting
- GIPS compliant performance reporting and composite maintenance
- A golden source of Corporate Actions including electronic support for voluntary corporate actions
Through its Securities and Fund Services business, Citi’s industry-focused experts provide investors worldwide with tailored solutions delivered through proven global platforms that feature modular, open architecture. With over $12 trillion of assets under custody and the industry’s largest proprietary network, clients can leverage Citi’s local market expertise and global reach to extract value across the entire investment value chain.
Global Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citi’s Global Transaction Services supports over 65,000 clients. As of the fourth quarter of 2009, it held on average $335 billion in liability balances and $12.1 trillion in assets under custody.
RiverFront Investment Group, LLC is an independent SEC-registered investment advisor located in Richmond, Virginia managing over $1.5 billion in a series of global tactical asset allocation separate account and mutual fund portfolios. Majority owned by its employees, the firm provides asset management, investment advice, and leading edge market insights. RiverFront’s minority investors include Robert W. Baird & Co. (Baird) and Private Advisors, LLC. For more information about RiverFront please visit www.riverfrontig.com.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.