Citigroup Launches New Hedge Fund Reporting and Accounting Systems

Advanced Technology Features HedgeLinkSM, Interactive Web-based Operating Platform; and Fully Integrated Offshore Administration System

Seamless Functionality for Hedge Fund Administration, Including Fund of Funds Custody, Strengthens Citigroup Position as Top-Rated Administrator in Marketplace.

New York, NY, April 28, 2005 – Citigroup® Global Transaction Services today announced the launch of HedgeLinkSM, an interactive Web-based operating platform for both hedge fund manager and investor reporting. In conjunction with HedgeLinkSM, Citigroup also announced it has completed the installation of a fully integrated, multi-currency offshore administration system consisting of securities, general ledger, share registry and reporting modules.

"The market-leading combination of HedgeLinkSM and our fully integrated offshore administration system – which we have engineered to work seamlessly together – significantly bolsters our technological offerings to funds services clients," says Ede Conyers, Global Product Head of Alternative Investment Services at Citigroup. "Our goal is to become the administrator of choice in the alternative investments marketplace, and this launch underscores our commitment to providing clients around the world with the finest service, products and technology available."

The hedge fund marketplace is growing at a rapid pace. Over the past decade, hedge fund assets have expanded from $20 billion to over $900 billion in more than 8,000 funds worldwide. By 2010, the asset class is expected to hold $2 trillion.

Citigroup's Global Transaction Services has more than doubled its alternative investment assets under administration in the past year. "We are extraordinarily gratified to have received immediate, wide-spread acceptance in the marketplace," says Richard Ernesti, Head of International Sales for Alternative Investments, Fund Services and Securities Services.

"We are working hard to maintain – and increase – our momentum. In addition to our top-rated client service, asset managers around the world have told us that they are enthusiastic about the advanced technology we are offering as well as the proposed enhancements we will be installing throughout the year."

HedgeLinkSM was designed to offer hedge fund clients the capability to drill-down to account-level detail from summary views; the ability to download reports in pdf, Excel or Word formats; investor access to statements and other fund documents such as the offering memorandum; and help desk support to ensure ease of access.

Later this year, Citigroup expects to enhance HedgeLinkSM to include onshore partnership funds, portfolio reporting and the capability to function as a platform for separately managed accounts.

Reports currently available on HedgeLinkSM include:

  • Balance Sheet
  • Profit & Loss Statement
  • Positions Report
  • Top Holdings Report
  • Transactions
  • Movements
  • Performance Fees
  • Fund of Funds Liquidity
  • Fund of Funds Group Movement
  • Valuation Summary
  • Fund Documents
  • Investor Statements
Our fully multi-currency offshore administration system, offers the following features:
  • FIFO, average cost and lot matching inventory methods and short sales
  • High level of security with transactions journalized, password lock-outs, security event log and separate authorization of transactions
  • Automated collapsing of series at year-end as part of the incentive fees function
  • Interfaces with all major prime brokerage firms
  • Additional support for Fund of Hedge Funds ("FOHF") and Master-Feeder structures
  • Fully automated administration, management and incentive fee calculations, and other general ledger accounting necessary to finalizing fund NAVs.

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About Citigroup Global Transaction Services
Citigroup® Global Transaction Services is a leading provider of integrated cash management, trade and securities services for corporations, financial institutions, intermediaries and governments around the world. With over $ 139 billion in average liability balances, more than $ 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 90 local markets. For additional information, see www.transactionservices.citigroup.com.

About Citigroup
Citigroup (NYSE: C), the leading 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.