Citigroup Global Transaction Services EMEA announces arsago as first hedge funds client as it expands its fund administration services across Europe
Frankfurt & London, 9 February 2005 - As 2005 begins in earnest, Citigroup Global Transaction Services (GTS) EMEA is broadening its fund administration services across Europe through a number of key business initiatives and outsourcing alliances, particularly in Germany.
Francesco Vanni d’Archirafi, CEO of Citigroup Global Transaction Services EMEA says “We are fully committed to developing and expanding GTS’ services and capabilities throughout EMEA. Germany is a core target market for us in this region and these announcements represent exciting initiatives in driving our growth across Europe, particularly of our fund administration and depotbank services in the hedge and traditional fund arenas. Vitally, we remain focused on building and developing our client relationships through participating in such opportunities.”
Within Citigroup, GTS is bundling all administrative depotbank- as well as fund administration services. Due to regulatory reasons in Germany the function of the Depotbank and fund administration are strictly separated within Citigroup Global Markets Deutschland and belong to different boards.
As an ongoing process to improve quality control standards, Citigroup has also adopted SAS 70 reporting standards as a special quality control instrument of the fund administration process. “We believe this is an important step in maintaining quality control of the fund administration process and highlights GTS’ capability differentials in such a technologically advanced business environment,” says Jürgen Ehle, product manager at Citigroup GTS, Germany.
On 12 January 2005, Citigroup Investment Deutschland KAG and arsago Global Hedge Holding GmbH launched the first joint global macro single hedge fund regulated by the German investment law. This fund predominantly in the interest rate and equity index as well as in the currency and precious metal markets. The fund was launched with an initial volume of over 60 mm Euro; is not for public distribution and targets institutional investors.
“We are particularly proud to service the first product on our new platform for the German hedge fund manager arsago Global Hedge Holding GmbH, as arsago has been professionally and successfully managing institutional money in its global macro single hedge fund in Frankfurt and abroad since 2002,” says Jörg Sittmann, Citigroup Investment Deutschland KAG.
“Particularly due to the low correlation to other asset classes, a regulated hedge fund offers an immensely attractive investment alternative, especially for insurance companies and pension funds,” emphasizes Arsago.
In December 2004, Citigroup also announced that the German regulatory authority (BaFin) granted a full licence to Citigroup Investment Deutschland Kapitalanlagegesellschaft GmbH, a new investment company from which both foreign and German fund managers, and particularly hedge fund managers, may access the German market with minimal operational outlay.
This new business is designed in response to the recent German Investment Act, which enables hedge funds to be established in Germany for the first time. Citigroup Investment Deutschland Kapitalanlagegesellschaft effectively takes on the administrative, reporting and risk management requirements on behalf of new funds, removing these barriers to entry and supplying the full suite of services for efficient operations in the German regulatory environment.
Citigroup Investment Deutschland Kapitalanlagegesellschaft has outsourced the fund accounting, certain transfer agency matters and other administrative functions to GTS business; depotbank services will be provided by Citigroup Global Markets Deutschland.
“Citigroup will therefore be providing fund managers, particularly hedge fund managers, with a unique and efficient service by offering fund administration, custodial banking and prime brokerage services from a single banking platform. And Citigroup GTS will perform most of the administrative responsibilities” explains Jörg Sittmann, a general manager of Citigroup Investment Deutschland Kapitalanlagegesellschaft GmbH. “With our new business, fund managers and foreign fund managers, in particular, will be able to enter the German market cost-effectively and with a minimum of bureaucracy," he adds.
Citigroup (NYSE: C), the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com.
About Citigroup® Global Transaction Services
Citigroup Global Transaction Services is a leading provider of integrated cash management, trade finance, securities and fund services and commercial card solutions to corporations, financial institutions and governments around the world. With over US$ 115 billion in average liability balances, more than US$ 7.9 trillion in assets under custody and the largest proprietary branch network, Citigroup’s award-winning operating systems and Internet-based delivery channels enable clients to manage and monitor working capital and investments more efficiently, streamline transaction processing cycles, and re-engineer receivables and payment processes. Citigroup Global Transaction Services provides clients with access to Citigroup’s full range of capabilities and solutions along with an on-the-ground presence and in-depth knowledge of more than 100 local markets. For additional information, see www.transactionservices.citigroup.com.
Citigroup Global Markets Deutschland AG & Co. KGaA conducts business in Corporate and Investment Banking and provides companies, governments and institutional investors with comprehensive financial concepts in Investment Banking, Fixed Income, Foreign Exchange, Equities and Derivates as well as Global Transaction Services.
It has approx. 400 employees. Citigroup Global Markets Deutschland AG & Co. KGaA is part of Citigroup, the world's largest financial service provider which is present on all continents, in over 100 countries, and has approximately 275,000 employees.