Introduction
On behalf of our Citi colleagues around the world, thank you for supporting us this past year. We greatly look forward to continuing our partnership with you, and hope that 2010 is your most productive and profitable year ever.
At Citi® Investor Services, our overriding objective is to provide you with global, flexible, open architecture solutions that support your success. In the past year, we have worked hard to accomplish that goal by developing and delivering a number of key product enhancements and launches.
Global, Open-Architecture Investor Solutions
- To assist sponsors as they grow and manage client assets, we introduced OpenWealthSM as the market’s first Unified Managed Household (UMH) servicing platform providing automated household, portfolio and tax optimization for investors serviced through distributors and sponsors of wealth management. The service was launched with TIAA-Cref - the nation’s leading provider of retirement services for the academic, medical research and cultural fields - as our inaugural client.
- To improve operational efficiency and transparency for hedge fund managers, Citi’s Hedge Fund Services launched Hedge Fund Middle Office Service (HFMO), an operational suite of solutions for hedge fund managers around the world that improves efficiency and allows managers to focus on optimizing investment decision making. HFMO can be used either as a stand-alone product or in conjunction with Citi’s existing portfolio of Hedge Fund Administration services.
- To provide easier access to fund information and data for boards of directors, legal personnel, compliance officers and other associates with fund administration responsibilities, Citi Fund Services pioneered the Fund Governance Portal (FGP). The portal allows our mutual fund clients that utilize regulatory administration services to gain real-time access to data, critical documents and links that are essential to managing a fund’s business.
- We continue to generate positive momentum with our core Global Custody offering and achieved major milestones this past year.
- The number of Proxy Markets increased from 70 to 92, accounting for 100% coverage of our Global Custody Network.
- Our Commission Recapture capability was enhanced to provide a simple and cost-effective way for asset owners to claim back a portion of the commission that has been paid to brokers.
- We expanded Treasury Analytics with new online reporting functionality to address the regulatory reporting requirements of the Financial Accounting Standards Boards (FASB) issued Statement 157 (FAS 157) and Statement 115-2 (FAS 115-2).
- Our newly launched Class Action Service is designed to take over the tasks of identifying, tracking and collecting cash distributions to which you may be entitled from U.S. securities class actions. The service is aimed at shareholders who are eligible to file claims to receive compensation under court-ordered payments.
- Advanced Pooling Solution (APS) was launched with the Netherlands-based TKP Investments and AEGON Global Pensions. APS provides asset managers the ability to mingle funds with common investment strategies, even though they may have different regulatory, fiscal, accounting or operational characteristics. It is a unique service that spans multiple offerings across our investment servicing product suite, including fund accounting, custody, securities lending, performance measurement and compliance monitoring.
- Our new Auto FX Share Class Hedging Solution provides a highly flexible, transparent, currency-hedging solution that reduces the currency risk associated with investments in non-fund base currency share classes. This innovative offering allows fund managers to concentrate on day-to-day portfolio management, leaving the process of share-class hedging to Citi, the fund administrator.
- Bank Debt Services delivers end-to-end loan custody and administration capabilities for asset managers that result in a level of streamlined efficiency previously unavailable in the marketplace. The service is designed to proactively manage the operationally intensive functions required to support bank debt transactions. Featured in a tightly integrated suite of offerings, the capabilities include settlement services, loan administration services and client reporting.
- The Securities Lending industry has experienced market dynamics on an unparalleled scale. Because of the open architecture and flexibility of our product offering, our clients were able to make critical choices regarding the structure of their lending programs. We continue to enhance our product and service offerings, including:
- Advanced Pooling of Lendable Assets. As global asset managers bring together the assets of investors with different tax, accounting and regulatory profiles in single pools to increase investment flexibility, Citi’s role of securities-lending agent is being transformed to meet the changes in fund structures. We have developed capabilities to lend securities on behalf of each unique investor type in a tax-transparent vehicle.
- New Markets. Greece and Poland have recently been added to the markets in which we lend, bringing our global presence to 38. Brazil and Malaysia are currently being analyzed for further market expansion.
- Securities Finance Reporting (SFR). The next-generation reporting platform delivers an unprecedented degree of transparency, flexibility and accessibility to business data. This breakthrough reporting is a dynamic delivery system that - for the first time - enables clients to produce reports precisely tailored to meet their specific requirements.
Talent
Our business, like yours, is directly dependent on the excellence and dedication of our professionals. This year, we continued to improve the quality of our staff around the world.
Global:
- Francesco Vanni d’Archirafi was appointed Head of Global Transaction Services (GTS). Prior to this appointment, he was Global Head of Treasury and Trade Solutions and, earlier, Head of Global Transactions Services for Europe, Middle East and Africa, where he had responsibility for Cash Management, Trade Finance, Trade Services and the Securities and Fund Services business across the region.
- Sanjiv Sawhney will be joining SFS as Global Head of Fund Services. Sanjiv will be responsible for new business development and market leadership globally for Fund Services. He will lead the positioning of Fund Services within our comprehensive suite of Investor solutions and deliver a value-added set of products and services to meet investors’ needs. Sanjiv will be based in Luxembourg and has over 17 years of securities services experience, including 15 years with Citi where he held key positions in our Fund Administration business, including Head of Fund Administration in EMEA.
- Jervis Smith was named to the newly established Global Head of Client Executive role. His new position is integral to managing the relationships with our clients and for delivering a first-class client experience across the globe. Most recently he acted as the Financial Institutions Head for International Asset Managers and the Middle East.
- Richard Ernesti maintains his position of Global Head of Investor Client Sales Management and has taken on additional responsibility for managing the EMEA Investor Client Sales Management (CSM) team. In this expanded role, he will be responsible for our Financial Institutions CSM teams in Luxembourg, Ireland, the Netherlands and our Investor CSM team in the UK.
North America:
- Bob Wallace was appointed Head of Securities and Fund Services for North America. In his new position, he will provide leadership for the Investor, Intermediary and Issuer Services businesses in the region. Most recently he held the role of Global Head of Fund Services and will continue to do so until a successor is named.
- Bob Donahoe has been named Head of the North America Investor Services CSM organization. Bob is now responsible for managing a portfolio of investor clients, for coordinating Investor CSM teams in the Americas and for driving target client relationships. Prior to joining Citi, Bob was a Managing Director for BISYS Hedge Fund Services where he was responsible for global business development.
- Mike Sleightholme was appointed Head of SFS North America Hedge Fund Services. In this position, he will be responsible for driving our capabilities in this space and broadening our offerings to our clients.
- Robert Smuk has been promoted to North America Operations Head. He will have direct oversight of all operational units in the region and, working with the product teams in North America, will be responsible for delivering consistent, superior execution capability to our clients for all products and services. Most recently he was GTS Head for Canada.
- Liam McMakin was named North America Head for AI Investor Services Operations. In his role, he is responsible for the operational management of the hedge fund Investor Services functions in Toronto, Roseland, Bermuda and the Cayman Islands. He retains his current responsibilities as site head of the Cayman office and Investor Services in Roseland and Cayman.
- Mark Bjorstrom assumed the role of Head of Operations for the North America Fund Services business. In this capacity, he oversees the daily production of Transfer Agency, Fund Accounting, Fund Administration and Tax Services currently performed in Columbus, Ohio.
- Peter Verduin has become the Client Executive Head for the Americas and is also responsible for all SFS clients including Alternative Investments. Previously, he was Head of SFS in Amsterdam, where he successfully built our business.
- Gerald (Jerry) McCullough has joined Citi as the new Director of Fund Accounting. Jerry brings over 30 years of financial services experience, working in both the audit and asset management arenas. Prior to joining Citi, Jerry managed for 16 years the Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-Cref) accounting operations, and supervised the firm’s fund administration, corporate financial reporting, accounting policy, and insurance company investment accounting operations.
- Gregory Seward, CPA, joined Citi as the Director of Fund Administration, overseeing financial administration, portfolio compliance and the Treasurers group. Greg has over 25 years of experience in financial services, most recently as Vice President and Treasurer for Franklin Templeton Investments. He also gained senior experience in fund accounting, fund administration and transfer agency services at JPMorgan Chase; auditing at PricewaterhouseCoopers; and broker/dealer, trust company operations and alternative products administration at other financial organizations.
- Jeff Shiverdecker joined our Operations’ senior management team as Director, responsible for overseeing large, strategic initiatives and system projects for Fund Services in North America. Jeff comes to Citi from Fidelity Investments, where he was Head of Business Architecture and, prior to that, headed up the US office of IGEFI, a MultiFonds vendor organization.
LATAM:
- To increase our focus on the investor services segment in Latin America, Alejandro Berney was appointed Latin America and Mexico Investor Services Client and Sales Manager Head. He is responsible for driving our new business pipeline and revenue growth as well as leading our cross-selling efforts across our LATAM and Mexico franchises.
Asia:
- Larry Komo was appointed Investor Services Head, Asia. This new role is in addition to his responsibilities for Global Custody and Securities Lending in the region.
- Kamal Jandu was named Client Executive Head for Asia, with responsibility for managing the SFS clients in the region. Previously he was the Head of Managed Funds in Asia for Corporate Banking.
Securities and Fund Services Awards
2009 - Awards, Rankings, Recognition
In 2009, we were privileged to receive a number of industry accolades across our Securities and Fund Services business, many of which could not have been achieved without your support.
Asia Asset Management
Best of the Best Awards
- Best Local Custodian in Asia (ex-Japan, ex-Australia)
The Asset
Triple A Transaction Banking Awards
- Best in Corporate Trust
Asian Investor
2009 Service Provider Awards
- Best Securities Services Provider – China
- Best Securities Services Provider – Japan
- Best Securities Services Provider – South Korea
- Best Securities Services Provider – Thailand
The Banker
Bank of the Year Awards
- Securities Services House of the Year
Emeafinance
Achievement Awards
- Best Depositary Receipt Programme in EMEA
EuroHedge
Administrator Survey
- #2 – Assets under Administration
Financial-i
Leaders in Innovation
- Most Innovative Fund Administration & Accounting Solution Provider
FSO Knowledge Xchange
Excellence Awards
- Excellence in Business Process Management – OpenWealthsm Unified Managed Household Servicing Platform
Global Finance
World’s Best Sub-Custodians
- Latin America
- Argentina
- Colombia
- Mexico
- Sri Lanka
- Venezuela
Global Investor
Global Custody Survey
- #1 Overall (Weighted)
- #1 Overall (Footprint)
- #1 Mutual Fund Manager (Weighted)
- #1 Mutual Fund Managers: Americas (Weighted)
- #2 C1 (Weighted)
- #2 Asia (Weighted)
- #2 Sole: EMEA (Weighted)
- #2 Americas (Weighted)
- #3 Asia (Unweighted)
- #3 EMEA (Weighted)
- #3 Mutual Fund Manager (Unweighted)
- #3 Mutual Fund Managers: Americas (Unweighted)
- #1 – Czech Republic (Equities)
- #1 – Greece (Equities and Fixed)
- #1 – Hungary (Equities)
- #1 – Italy (Fixed)
- #1 – Poland (Equities)
HedgeFund.Net
- #1 Top 10 North American Fund of Fund Administrators
- #3 Top 10 North American Hedge Fund Administrators
- #3 Top 10 European Hedge Fund Administrators
HFM Week
- Best Administrator for Middle Office
ICFA
- Mutual Fund Administrator of the Year
- Fund Administrator of the Year: Asia Pacific
ISF
Beneficial Owners Survey
- #1 Securities Lender – Asia Pacific
LatinLawyer
- Agency and Trust role in Peru LNG Project Finance Deal of the Year
Source Media - Mutual Funds
Services Guide
- #1 Ranking for Transfer Agency Services (based on # of clients)
Global Custodian
Agent Banks – Major Markets Survey
Top Rated – As voted by Leading Clients
- Austria
- Greece
- Hong Kong
- Ireland
- Italy
- Japan
- Korea
- Singapore
- United Kingdom
- Australia
- Belgium
- France
- Germany
- Netherlands
- Portugal
- Spain
- United States
- Austria
- Canada
- Greece
- Hong Kong
- Ireland
- Japan
- Korea
- Singapore
- Spain
- Switzerland
- United Kingdom
- Australia
- Belgium
- France
- Germany
- Italy
- Netherlands
- New Zealand
- Portugal
- United States
Top Rated – As Voted by Leading Clients
- Asia/Australasia
- North America
- Global
- Western Europe
- Asia/Australasia
- North America
- Western Europe
- Global
- Ireland
- Japan
- Singapore
- South Korea
- United Kingdom
- Ireland
- Japan
- South Korea
- Singapore
- United Kingdom
- Ranjit Chatterji
- Andrew Gelb
- Richard Ernesti
- Lou McCrimlisk
- Nick Roe
- Neeraj Sahai
- Mike Sleightholme
- Brian Staunton
League Tables
- #3 Global Provider
- #3 North America
- #3 Multi-Provider
- Global
- $10B+
- North America
- Europe
- Single Provider
- Multi-Provider
League Tables
- #1 – Asia Pacific – League Tables
- #2 – $1- 5 Billion in AUM
- $100 Million – 1 Billion in AUM
- $1 Billion – 5 Billion in AUM
- North America
- Asia Pacific
- Global
- Less than $100 Million in AUM
- Over $5 Billion in AUM
- Equity
- Fixed Income
- Fund of Funds
- Other Funds
- Europe
- 44 Best in Class
– Client Services (4)
– Value (5)
– Fund Accounting (4)
– Transfer Agency (9)
– Distribution Support (3)
– Portfolio Servicing (5)
– Fund Reporting (7)
– Compliance (7)
Top Rated - League Table Standings:
- Overall Provider
- $100M - $1B
- Asia
- North America
- Client Service (4)
- Value (4)
- Fund Accounting (4)
- Capital Drawdowns (4)
- Investment Execution (2)
- Accounting and Reporting to Limited Partners (2)
- Accounting and Reporting to General Partners (3)
- Distributions (3)
- Reporting (2)
- Regulatory Reporting and Compliance (1)
- Corporate Secretarial (2)
- Overall
- $100M - $1B
- North America
- Asia
- $1B - $5B
- $5B+
Best in Class
- OTC Derivatives (5)
- Corporate Administration (1)
- Fund Structures (1)
- Funds of Funds Administration (3)
- Middle Office Services (1)
- Credit/Leverage (1)
- Risk Management (2)
- Less than $100M
- $100M - $1B
- $1B+
- Single Strategy
- Multi-Strategy
- Fund of Funds
- North America
- Asia
Our models, robust operational capabilities and unmatched global presence allow you not only the flexibility that you desire but also the widest array of solutions - traditional and alternative fund services, managed account services, custody and securities finance, and widest distribution in the industry - across all asset classes, geographies and client segments. Whether you are launching new strategies, entering new markets or introducing new instruments, we proactively partner with you to design solutions for your success today and your growth tomorrow.
