Citigroup international funds kept on hold
Citigroup Asset Management funds with any offshore exposure have been kept on hold by retail fund raters Standard & Poors, following the sale of the US firm to Legg Mason last week.
All of the domestic Citigroup funds have had their ratings reinstated, including the five-star rated credit trust and four-star Australian equity, bond and listed property offerings, following reassurance from Legg Mason that the only material change to these vehicles would be their branding.
However, the future of Citigroup funds with any offshore exposure is less clear, given their overlap with existing Legg Mason products and the need for a rationalisation of people and processes.
This means Standard & Poors has kept Citigroup funds such as the international equity and balanced funds on hold, pending the outcome of the business’ merger.
AUTHOR
Michael Bailey
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