Citi Expands Securities Administration Business in Singapore to Address Increased Client Demand for Risk Management
Singapore becomes Citi’s Asia Pacific hub for operations, collateral management and portfolio performance management
Singapore - June 21, 2012 – Increased risk management and regulatory needs of clients in the aftermath of the global financial crisis, have driven the expansion of Citi’s Securities and Fund Services business ("SFS") in Singapore, which now serves as the SFS Asia Pacific hub for operations, collateral management, and portfolio performance management.
Citi’s decision to hub its SFS operations in Singapore is due to the expected increase in demand for more sophisticated fund and investment services, as clients grapple with new risk management measures and regulations to strengthen the global financial system.
Over the last three years, Citi’s SFS operations in Singapore has transformed itself from a custodian to a full-fledged fund and investment services provider by building up its capabilities in fund accounting, hedge fund administration, middle office administration, collateral management, ETF fund services, investment administration servicing, portfolio performance measurement services and most recently, private equity and real estate administration. Singapore is Citi SFS’ only market in Asia Pacific to offer the full range of fund and investment services.
Commenting on the recent launch of its private equity and real estate administration services in Singapore, David Russell, Asia Pacific Head for Securities and Fund Services at Citi said, "As private equity and real estate investments continue to grow, managers and institutional investors in the region are demanding robust administrative support and a seamless combination of services. Our new Singapore capabilities will provide the on-the-ground presence we need to deliver premier service and respond faster to our expanding client base in the region."
In addition to being the Asia Pacific hub for SFS’ operations, collateral management, and portfolio performance management services, Singapore is the Southeast Asia and India hub for product development, client servicing, and private equity and real estate administration services. SFS Singapore also services global clients by supporting Citi’s two other SFS operation hubs in Tampa and Edinburgh.
In the last three years, assets under custody at SFS Singapore have more than doubled from USD 78 billion to USD 169 billion. Headcount has grown by about 50 percent from 217 to 323 employees, and transaction volume has almost tripled from an average of 50,000 transactions per month to 130,000 transactions per month. Since establishing its collateral management hub in Singapore in 2011, Citi SFS in Singapore has won 18 mandates from clients in the region, across various industry segments including broker dealers, insurance companies, banks, asset managers and sovereign funds.
Mr Alvin Goh, Head of Securities and Fund Services for Singapore said, "Our strategy to make Singapore the hub for our fund and investment services supports the Monetary Authority of Singapore’s plans to make Singapore a risk and collateral management center and private equity hub for Asia. Singapore is a choice location for our regional operations because of its reputation as a high quality professional financial services hub and the highly skilled talent pool available here."
Noting the benefit to clients, Mr Goh said, "Singapore’s proximity to the growth markets in Asia make it a strategic location for product development as it allows us to have our ear to the ground, to pick up on new trends and client needs, and produce timely and relevant products for our clients. Our regional operation in Singapore also allows our Asian clients to benefit from the scale and sophistication of the infrastructure in Singapore."
SFS Singapore’s expansion into fund and investment services and development of the regional operations hub began in 2008, following the global financial crisis, which highlighted how the failure of financial intermediaries could destabilize the global financial system. This led to new regulations to mitigate risk, such as the collateralization of over-the-counter derivatives, and greater diversification of investments, which increased the demand for products such as ETFs and private equity. SFS developed its suite of fund and investment services to address the growing regulatory and investment risk management needs of clients.
Commenting on the outlook for the industry, Mr Goh said, "Clients will be looking for more ways to improve the cost efficiency of their operations, as the implementation of regulations such as Basel III and Dodd Frank compress their revenues and margins. The only way to help clients achieve that is through the innovation of products and services."
"Innovation has always been a driving force for the growth of our business and we continue to invest in new technologies and capabilities to stay ahead of client needs. Our Innovation Lab in Singapore is an important platform through which we engage our clients to create the most effective solutions for them. Clients can "test drive" the latest technologies and solutions through live demonstrations with situation analysis and discussions with us."
"We will continue to invest in innovation and the growth of our Singapore business, which will hopefully act as a catalyst to attract more investment managers to base themselves here, and to strengthen Singapore’s reputation as a global financial services hub."
SFS is part of Citi Transaction Services, a division of Citi’s Institutional Clients Group that offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world.
Through SFS, Citi’s industry-focused experts provide institutional investors worldwide with tailored solutions delivered through proven global platforms that feature modular, open architecture. With $13 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.
Citi SFS in S’pore - from local operations to Asia Pacific hub in numbers
- Assets under custody more than doubled - From USD 78 billion to USD 169 billion
- Transaction volumes almost tripled - From 50,000 a month to 130,000 a month
- Employees increased 50 percent - From 217 to 323 employees
- 18 collateral management mandates from clients in the region
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 95 countries, Citi’s Transaction Services supports over 65,000 clients. As of the first quarter of 2012, it held on average $377 billion in liability balances and $13 trillion in assets under custody.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. 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.
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