BlackRock to Manage $80 Billion Assets of Citi’s Clients

The New York-based Citi Wealth on Thursday selected global asset manager and technology provider BlackRock to create a new portfolio offering for its clients – Citi Portfolio Solutions powered by BlackRock.

This offering, which is expected to begin in the fourth quarter subject to customary approvals and conditions, will combine the strategic investment advisory and planning capabilities of the leading global bank with the investment management and technology strengths of one of the world’s preeminent asset managers. 

The agreement includes the appointment of BlackRock to manage approximately $80 billion in assets for thousands of Citi Wealth clients whose accounts are currently managed by Citi Investment Management (CIM).

Under the agreement, BlackRock will manage a range of core, opportunistic and thematic investment strategies across Equities, Fixed Income, Multi-Asset Class strategies and, over time, Private Markets.

In addition, the firm’s Aladdin Wealth technology platform – with its advanced risk, portfolio management and data insight capabilities – has been selected by Citi and will be deployed to Citi’s Private Bankers and investment professionals.

Leaders at Citi Wealth and BlackRock believe the new model will benefit clients and accelerate growth at both firms.

Citi Wealth clients with assets to be managed by BlackRock are domiciled in nearly 100 countries and they will continue to maintain a primary relationship with their Citi Private Banker who will advise on their overall wealth approach, including strategic asset allocation, establishment of long-term financial goals and selection of investment strategies.

Subject to Citi Wealth’s ongoing review and monitoring, BlackRock will be responsible for managing and implementing specific investment strategies tailored to meet the objectives of Citi Wealth clients.

This enhanced investment offering will provide Citi clients with access to a wide range of investment options and strategies, leveraging BlackRock’s leadership in portfolio construction and the management of customized portfolios.

As part of the agreement, certain members of CIM will join BlackRock where they will continue to serve as portfolio managers on existing strategies for Citi clients. In due course, Citi and BlackRock will also develop new products and solutions for the benefit of Citi clients by leveraging the scale, infrastructure, and capabilities of BlackRock.

Meeting Clients’ Evolving Needs

BlackRock’s Vice Chairman Sir Robert Fairbairn said that they were excited to be selected by Citi to bring BlackRock’s extensive suite of investment solutions and innovative financial technology to clients, enabling Citi to deliver customised portfolios and strong investment outcomes across Wealth.

“As investor appetite grows for custom built, whole portfolio solutions, BlackRock continues to invest in our global investment platform to stay at the forefront of clients’ evolving needs,” he added.

Jaime Magyera, Head of BlackRock’s US Wealth Business, noted that BlackRock has long enjoyed a business relationship with Citi and said the firm looked forward to the opportunity to work even more closely with the bank’s Wealth business under the Citi Portfolio Solutions arrangement.   

According to Jaime, for nearly four decades, BlackRock has helped lead the evolution of customised portfolio management, continuously adapting to meet the needs of individuals for tailored, tax-optimized investment strategies underpinned by cutting-edge asset allocation and portfolio construction capabilities.

She also said that these investors and their advisors were reimagining the entire portfolio experience across public and private markets. By working alongside Citi and its clients, BlackRock is well-positioned to deliver the breadth, precision, and innovation their clients and investors worldwide require.

The agreement is not expected to have a material impact on Citi’s previously disclosed revenue or return targets.