Federated Investors Expands Mandate with Citi to Be Service Provider for Separately Managed Accounts
NEW YORK--Citigroup today announced that Federated Investors, Inc. has expanded its contract for use of OpenSMAsm and CitiConnect, Citi’s award winning platforms serving SMA investment managers. As part of this expansion, Citi will support Clover Investment Advisors, a Federated subsidiary. Clover provides managed accounts to leading sponsors and distributors through various equity and balanced portfolios. Citi has been delivering SMA services to Federated since 2006.
“This expansion of our relationship is gratifying confirmation of the leading capabilities of our OpenSMA platform, and we look forward to continuing to provide Federated with enhanced growth opportunities and efficiencies for many years to come.”
“We have been very pleased with the quality of service Citi has provided for our SMA business, which is a key product line of our firm,�?? said Anne H. Kruczek, Head of Investment Management Administration and Operations, Federated Investors, Inc. “In addition to the level of service, we continue to be impressed with the leading-edge capabilities of Citi’s OpenSMA offering and intend to migrate Clover’s SMA business to OpenSMA. We are particularly enthusiastic about the efficiencies of the OpenSMA fixed income application as it relates to expanding the flexibility of our balanced offering. Through its characteristic-based modelling features, we can expand our ability to support balanced SMAs in a more automated fashion and without increasing portfolio management staff.�??
“Without question, Federated is one of the leading firms in the investment management industry today,�?? said Neeraj Sahai, Global Head, Securities and Fund Services, Citi. “This expansion of our relationship is gratifying confirmation of the leading capabilities of our OpenSMA platform, and we look forward to continuing to provide Federated with enhanced growth opportunities and efficiencies for many years to come.�??
OpenSMA is an end-to-end operations platform that is the foundation of Citi’s SMA capabilities. OpenSMA automates key functions and adds value through:
- Automated account opening and maintenance
- Charter use of the DTCC Managed Account Service
- 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 for 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 though 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.
About Federated
Federated Investors, Inc. is one of the largest investment management firms in the United States, managing $389.3 billion in assets as of Dec. 31, 2009. With 145 funds and various separately managed accounts, Federated provides comprehensive investment management worldwide to nearly 5,200 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.
About Citi
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.