updated 5:13 PM CEST, May 23, 2022

U.S. banking group Citi to 'partner' with wealth manager Schroders Cazenove, in new offering for HNW investors

Citi, the New York-based American banking group that has operations in some 160 countries and jurisdictions around the world, has agreed a "strategic partnership" with London-based Schroders Cazenove, whereby it will launch a new discretionary fund management service for clients of Citi's "Citgold" services divison.  

The new "DFM" service is described as being introduced in order to take advantage of "a broad DFM proposition from Cazenove" that offers Citigold customers with money they wish to invest "the benefits of active portfolio management and transparent reporting", by a wealth management provider with "a strong track record of risk-adjusted returns and a consistent focus on preserving wealth".

Such clients will be able to make their investments in a choice of sterling, euro and U.S. dollar currencies, according to a statement issued yesterday.

Citigold is what Citi calls its program for high-net-worth clients (with a certain minimum of investable assets), which offers such clients the services of a "Citigold Relationship Manager", a "Citi Personal Wealth Management Wealth Advisor" as well as various perks and related banking services.

The statement noted that Citi's Relationship Managers would assess their individual Citigold client risk profiles and financial goals, while Cazenove Capital would then be responsible for determining "an appropriate asset allocation strategy" that would then lead to the creation of a portfolio for the client that best matched their individual needs.

Citi ramping up its
overseas wealth operations

As the American Expat Financial News Journal has been reporting recently, Citi has been ramping up its high-net-worth wealth offering in key overseas markets over the last few years – not just for American expats, but for "mass affluent" clients of all nationalities. Last month, for example, it formally opened what it said would be its "largest wealth hub globally" in Singapore, as it prepared to expand its operations there.

As reported, this new "Citi Wealth Hub" was said to be looking to cater to Southeast Asia's rapidly-growing affluent and high-net-worth market, via its "Citigold" and "Citigold Private Client" operations.

Today, meanwhile, Bloomberg is reporting that Citigroup Inc., Citi's parent, is planning to treble its assets under management in the United Arab Emirates "to US$15bn over the next five years", by increasing the number of its client-relationship managers there, while also quadrupling the number of affluent clients it has in the country.

"The growth will partly come from a mix of physical and digital investments, and providing more access to its institutional products and content to retail customers," according to the Bloomberg report.

Citibank didn't reply to a request for comment. 

Citibank is the consumer banking and financial services division of New York-based, New York Stock Exchange-listed Citigroup, one of the largest banking groups in the U.S. 

Outside the U.S., it is understood to have had to contend with the difficulties all non-U.S. financial institutions face when trying to maintain accounts for American expats, who are more expensive to have as clients than those of other nationalities owing to the significantly greater reporting obligations they come with, as a result of the U.S. tax evasion-prevention law known as FATCA. 

In 2019, as reported, Citibank confirmed to the AXFNJ  that it has informed a “small portion of U.S. credit card-holders with mailing addresses in certain international countries” that it would no longer be able to service their accounts, citing “local regulatory requirements”.