Citi Wealth has selected BlackRock to create a new portfolio offering for its clients — Citi Portfolio Solutions powered by BlackRock — tapping the world's largest asset manager to handle about $80 million in client assets.
Citi on Thursday said the offering will combine its strategic investment advisory and planning capabilities with BlackRock's investment management and technology strengths. BlackRock will manage assets for thousands of Citi Wealth clients whose accounts are now handled by Citi Investment Management.
BlackRock will manage a range of core, opportunistic and thematic investment strategies across stocks, bonds, multi-asset class strategies and, eventually, private markets, Citi said. The global bank and investment firm also chose BlackRock's Aladdin Wealth technology platform for Citi’s private bankers and investment professionals' use.
“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, Citi Wealth's head. “With this offering, we can accomplish both."
Keith Glenfield, who leads Citi Wealth Investment Solutions, called the offering "boutique in feel, global in reach."
Citi Wealth clients whose assets will be be managed by BlackRock reside in nearly 100 countries. They will maintain a primary relationship with their Citi Private Banker, who will advise on their overall wealth approach, Citi said. Subject to Citi Wealth’s ongoing review and monitoring, BlackRock will manage and implement investment strategies tailored to meet Citi Wealth clients' objectives.
Citi described the relationship as an enhanced investment offering that will provide clients with access to a wide range of investment options and strategies, using BlackRock’s leadership in portfolio construction and customized portfolio management.
Certain CIM members will join BlackRock, continuing to serve as portfolio managers on existing strategies for Citi clients. Over time, Citi and BlackRock will develop new products and solutions for Citi clients, Citi 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 customized portfolios and strong investment outcomes across Wealth,” said Robert Fairbairn, BlackRock's vice chair. “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, BlackRock’s U.S. Wealth Business head, noted that the two companies have had a long business relationship. He added that 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.”
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