Principal Global Investors signs with Citigroup for SMA services

Source: Citigroup

Global Transaction Services, a business unit of Citigroup Corporate and Investment Banking, today announced that it has been appointed by Principal Global Investors to be a service provider for the asset manager's retail separately managed accounts (SMA) business.

Initially, this mandate involves approximately 1,000 retail accounts totaling $250 million in assets under management.

"The separately managed accounts marketplace represents a major growth opportunity for us," said Barbara A. McKenzie, Chief Operating Officer and Chief Compliance Officer, Principal Global Investors. "As the SMA market evolves and investors look to new asset classes, we believe that our capabilities - particularly our specialty in preferred securities - will be increasingly attractive to sponsors. To support our anticipated rapid growth, we decided to leverage the capabilities of a well-established SMA outsourcer, with a robust infrastructure and connectivity with sponsors. This will allow us to quickly capitalize on market demand for our strategies and take on new sponsor relationships, without concern about operational and administrative constraints."

"We're very pleased that upon completion of its rigorous evaluation process, Principal Global Investors has selected us as service provider as it extends its presence in managed accounts," said Neeraj Sahai, Global Head of Securities and Fund Services, Citigroup Corporate and Investment Banking. "By outsourcing middle- and back-office functions to us, Principal Global Investors can now focus its resources on investment management, new product development and client service to support the growth of SMA sponsors and clients."

The foundation of Citigroup's SMA capabilities is Citigroup Asset Manager Solutions for Separately Managed Accounts, a tightly integrated end-to-end operations platform. Asset Manager Solutions automates key functions and adds value through:


  • Account management efficiency
  • Automated tax and restriction management
  • Electronic trade routing and best execution services
  • Paperless processing and work flow management
  • Automated reconciliation
  • Performance reporting
  • Client communications and fulfillment
  • Imbedded compliance and audit control

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