Citi Wealth has reached an agreement with BlackRock for the management of approximately $80bn in assets for its wealth clients.
The banking giant also joined forces with BlackRock to introduce ‘Citi Portfolio Solutions powered by BlackRock’.
The initiative unifies the advisory services of Citi Wealth with the investment and technological strengths of BlackRock.
Under this collaboration, BlackRock will oversee various investment strategies, encompassing equities, fixed income, multi-asset class strategies, and potentially private markets in the future.
BlackRock’s Aladdin Wealth technology platform will be utilised by Citi’s Private Bankers and investment professionals, offering enhanced risk, portfolio management, and data insights.
Clients of Citi Wealth, residing in nearly 100 countries, will continue their primary advisory relationship with Citi Private Bankers, who will provide guidance on overall wealth strategy.
BlackRock will be tasked with managing specific investment strategies, following Citi Wealth’s continuous evaluation and monitoring.
The partnership is set to provide Citi clients with a wider array of investment choices, drawing on BlackRock’s expertise in portfolio construction and management.
Some members of the Citi Investment Management team are expected to join BlackRock, contributing to the continued management of Citi client portfolios.
Additionally, Citi and BlackRock plan to develop new products and solutions for Citi clients.
The execution of this partnership is scheduled for the fourth quarter, subject to regulatory approvals and conditions, and is not predicted to materially affect Citi’s revenue or return targets.
BlackRock vice chairman Sir Robert Fairbairn said: “We’re 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.”
Citi head of Wealth Andy Sieg said: “We want to bring best-in-class advice, solutions and service to our clients, and we want to serve more of the world’s changemakers.
“With this offering, we can accomplish both. It brings together the sophisticated relationship-driven and market-based advice of our bankers, backed by the insights of our own Chief Investment Office, with the renowned investment expertise and innovative technology capabilities of BlackRock.”
In July, Citi Wealth partnered with Allfunds to enhance the efficiency of client services, utilising Allfunds’ platform for improved trade execution and settlement.
Citi Wealth will also serve as a sub-distributor for Allfunds, providing wider access to third-party investment products through the platform.
