15:00 | 05.05.2011
Citi Enhances Securities Lending Cash Collateral Investment Program to Include Solutions for Socially Responsible Investors
Citi today announced that it has added socially responsible investment
solutions to its securities lending cash collateral investment program.
Securities lending clients will now be able to elect to invest cash
collateral under socially responsible investment (SRI) principles that
consider environment, social and governance (ESG) factors. According to
Eurosif, as of 31 December 2010, over $11 trillion of assets are managed
globally in a strategy of socially responsible investing. Without an SRI
capability for the investment of cash collateral, firms that manage SRI
strategies have found it difficult to participate in securities lending
programs.
Citi’s new capability creates a solution that helps clients optimize
portfolio performance while meeting their SRI goals. Citi’s solution was
developed in partnership with Sustainalytics, an award winning ESG
research firm, and enables SRI clients to apply customized
multi-dimensional ESG screens to create a universe of eligible
securities for investment by the collateral management team.
“Money managers are increasingly incorporating ESG factors into their
investment analysis, decision-making and portfolio construction process,
creating new demands for investing products and services,” said Tim
Douglas, Global Head, Securities Finance, Global Transaction Services,
Citibank, N.A. “We are responding to our clients needs with a solution
that supports SRI requirements and reinforces our commitment to run our
business in a manner that benefits society and the environment.”
Citi’s new SRI offering is available to securities lenders through
OpenLendSM, a boutique service to enhance portfolio
performance by delivering an open architecture that provides access to
Agency, Third-Party, Hybrid and Exclusives lending by leveraging Citi’s
key strengths: unsurpassed global branch network, flexibility,
innovation, dynamic reporting, risk management and real-time controls.
”Sustainalytics is excited about working with Citi to support its
pioneering ESG cash collateral management offering,” says Michael
Jantzi, CEO of Sustainalytics. “Our organizations share a common
commitment to innovation and creating solutions that allow clients to
integrate ESG into a broad range of their investment activities.”
Through its Securities and Fund Services business, Citi’s
industry-focused experts provide investors worldwide with tailored
solutions delivered through proven global platforms that feature
modular, open architecture. With $13 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, Citigroup’s Global Transaction Services
supports over 65,000 clients. As of the first quarter of 2011, it held
on average $355 billion in liability balances and $13 trillion in assets
under custody.
Citi’s commitment to integrating social and environmental responsibility
into its global operations is long-standing. Citi is a member of the Dow
Jones Sustainability World Index (DJSI), and in 2010 became the first
major U.S. bank to join the United Nations Global Compact, a policy
platform and framework for companies committed to sustainability and
responsible business practices. In 2010, Citi was named “America’s
Greenest Bank” in the Money Center category by Bank Technology News and
was named “The Most Innovative Investment Bank in Climate Change and
Sustainability” by The Banker magazine for the second year in a row.
About Sustainalytics
Sustainalytics is a leading global provider of environmental, social and
governance (ESG) research and analysis for investors and financial
institutions. We provide a global perspective, underpinned by nearly 20
years of local experience and expertise in the responsible investment
market. Sustainalytics strives to continuously provide high-quality
solutions and commits to remain responsive to the current and future
needs of our clients. Recently, Sustainalytics was voted Best ESG
Research House by IPE/TBLI. Sustainalytics is headquartered in Amsterdam
and has offices in Boston, Frankfurt, Madrid, Paris and Toronto.
About Citi
Citi, the leading global financial services company, has approximately
200 million customer accounts and does business in more than 160
countries and jurisdictions. Through 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.
|
