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.
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.
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.
Melissa Chase, +1-416-861-0403 ext. 28
Tyler Daluz, +1-212-793-5234
Duncan Smith, +44-207-508-7281