Harnesses the power and scale of two global leaders in wealth

$80 Billion Citi Wealth Client Assets to Be Managed by BlackRock in Largest Agreement of its Kind

Citi Wealth announced the selection of BlackRock to create a new portfolio offering for its clients – Citi Portfolio Solutions powered by BlackRock. This offering 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.

“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,” said Andy Sieg, Head of Wealth at Citi. “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.”

Citi Wealth clients with assets to be managed by BlackRock are domiciled in nearly 100 countries. These clients 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.

“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 customized portfolios and strong investment outcomes across Wealth,” said Sir Robert Fairbairn, Vice Chairman at BlackRock. “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.”

Jaime Magyera, Head of BlackRock’s U.S. 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.

“For nearly four decades, BlackRock has helped lead the evolution of customized 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 said. “Today, these investors and their advisors are reimagining the entire portfolio experience across public and private markets. By working alongside Citi and its clients, we are well-positioned to deliver the breadth, precision, and innovation their clients and investors worldwide require.”

Keith Glenfield, Head of Investment Solutions for Citi Wealth, echoed the sentiment.

“There has never been a better time to be a Citi Wealth client. Boutique in feel, global in reach, this offering fully aligns with our high-quality open architecture approach and will significantly enhance the set of investment solutions and capabilities available across our platform,” he said. “Our clients will get the best of both worlds – the personalized guidance of a trusted Citi Private Banker or Advisor, augmented by BlackRock’s innovative technology and expertise in managing customized portfolio solutions.”

The agreement is expected to begin in the fourth quarter subject to customary approvals and conditions and is not expected to have a material impact on Citi’s previously disclosed revenue or return targets.

Source: Citi