The Blackrock and Citi operation will enter into force in the fourth quarter of 2025 and reflects a growing tendency of the great banks.
Citione of the main banks of Wall Streetannounced a strategic agreement with Blackrockthe world’s largest asset manager, to Transfer the administration of about US $ 80,000 million in customer assets of your heritage management division.
The operation, which It will enter into force in the fourth quarter of 2025, reflects the growing trend of large banks to associate with asset managers specialized while concentrating their efforts on advice and financial planning.
Citi Investment Management customers will continue to receive guidance in assets and design of investment strategies through their private bankers. For its part, Blackrock will be responsible for implementing these strategies and will integrate its Aladdin Wealth platform into the CITI advice ecosystem, expanding the tools available for bankers and advisors.
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Citi and Blackrock integrate strategies
Part of Citi’s managers team will join Blackrock as portfolio responsible, which will guarantee continuity in the relationship with customers. According to Christopher MarinacJanney Montgomery Scott research director, this movement allows CITI “to gain efficiency quickly” by reducing operating costs through outsourcing.
At the moment, Blackrock already supervises a fraction of US $ 635,000 million that Citi administers in Wall Street customer investments. With this new agreement, the firm reinforces its presence in the private banking business and, at the same time, obtains access to CITI investment strategies in private markets, a key segment for its growth plans.
Blackrock was fixed as a goal to capture US $ 400,000 million in private market funds by 2030in a context of pressure on the margins derived from the rise of low -cost passive management. In line with this objective, in June he announced that he would include private assets in retirement plans, which represent more than half of the resources he manages.
The alliance also fits the restructuring driven by Jane FraserExecutive Director of CITI, aimed at simplifying operations and strengthening the profitability of her patrimonial management business, considered one of the strategic pillars of the Wall Street bank.
Source: Ambito
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