Citigroup launches BlackRock SMA platform
Citigroup Wealth Advisors has added a separately managed account (SMA) offering to its existing wealth management platform, with the introduction of Citigroup Investment Solutions — Managed.
The new product comprises a BlackRock SMA platform, with portfolio reporting technology supplied by Praemium.
One of the advantages of the product is that it allows a personal portfolio to be blended across different model portfolios and managers, with a single comprehensive report covering the total portfolio.
The model portfolio providers selected for Citigroup Investment Solutions — Managed comprise a number of leading investment managers, including some Citigroup proprietary models offered only through this product.
Out of 45 possible investment strategies, Citigroup has selected four of its own managers, two from Ausbil Dexia, a BlackRock index and two van Eyk models.
Cormac Heffernan, BlackRock’s head of customised portfolio services, said SMAs are the newest areas in retail investment distribution, and are the fastest growing despite coming off a small base.
He said if the Australian experience of SMAs is anything like their uptake in the United States, they will become a significant aspect of the retail space.
The inclusion of Praemium’s portfolio reporting system, V-Wrap, comes after it also recently partnered with Credit Suisse’s Australian private banking operations and with Asgard.
Warren Gibson, Praemium’s national sales and marketing manager, said V-Wrap is currently a core focus, with a number of other signings with high-profile fund managers expected in coming months.
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