Blackrock arrived at an agreement with Citigroup to manage around 80 billion dollars in assets for the Bank’s Heritage Management Clients, CITI said Thursday.
This movement highlights a growing trend among large banks to associate with specialized asset managers while reinforcing their heritage management businesses around customer advice and financial planning.
Customers currently supervised by Citi Investment Management (CIM) will continue to work with their CITI private banker to obtain assets, assets, assets and strategy selection.
Blackrock will manage and implement these strategies, and CITI will implement the Blackrock Aladdin Wealth platform to its private bankers and investment professionals.
Citi is “pleased with its existing relationship with Blackrock and wants to transfer the rest of its assets under internal management,” said Christopher Marinac, director of Research at Janney Montgomery Scott.
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The world’s largest asset manager already supervises part of the 635 billion dollars in Citigroup customer investments, Bloomberg News reported earlier on Thursday.
“It is also a way for CITI to get efficiency profits quickly, since this subcontracting can reduce expenses,” Marinac added.
The association aligns with the restructuring impulse of the CEO Jane Fraser to speed up operations and improve profits in heritage management.
Under the agreement, which is expected to begin in the fourth quarter of 2025, some CIM employees will join Blackrock as portfolio managers for Citi customers.
For Blackrock, the agreement brings a considerable entry of funds and, over time, access to investment strategies in CITI private markets.
He is aiming to raise 400 billion dollars in accumulated private funds by 2030 while facing the pressure of indexed strategies of lower commissions.
As part of this impulse, Blackrock revealed plans in June to include private assets in their retirement plans, which represent more than half of the money that the company manages.
With Reuters information.
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