Managed funds research houseAssirthas givenCitigroup Asset Management Australia(CitiAM) a mixed report card stating it is performing well in domestic markets but needs to reassess its international operations.
On home ground, Assirt gave CitiAM a very strong rating for listed property securities and strong ratings for its business management, operating capability, asset allocation, Australian shares, and Australian fixed interest.
However, less positive was the competent rating for its international shares, and weak rating for international fixed interest.
In awarding star ratings CitiAM’s corporate bond, tactical asset allocation and listed property trusts all scored have five stars while Australian equities has been awarded four stars with all diversified trusts, including the balanced, growth, diversified and defensive, awarded three stars.
Assirt says CitiAM has kept local business on track and made some positive headway in securing key specialist wholesale mandates.
Fund flows continue to support the manager’s traditional areas of strength including diversified, tactical asset allocation, listed property and fixed income. The ratings agency adds that listed property and fixed income are experiencing strong support from the wholesale market, while Australian equities is experiencing a moderate revival.
CitiAM is also said to be getting good representation on a number of major wrap/master fund platforms with its diversified funds gaining renewed interest.
Rene Pyszko, senior investment analyst for Assirt, says Citigroup Asset Management can be best described as a niche player that offers a select number of high quality specialist products.
“Process enhancements in October 2000 have made a tangible contribution in terms of delivering risk-controlled performance. The team is now more confident with the process and is prepared to back their judgement,” Pyszko says.
The Australian business of Citigroup Asset Management, the global asset management division of Citigroup, CitiAM domestically manages $6.1 billion with total global funds under management exceeding $855 billion.
