Citi’s (NYSE: C) securities lending clients now have the option to invest cash collateral under socially responsible investment (SRI) principles.
The banking group announced the creation of the new investment program, which takes into consideration environment, social and governance (ESG) factors.
According to Eurosif, as of December 31, 2010, over $11 trillion of assets are managed globally in a strategy of socially responsible investing. Without an SRI capability for the investment of cash collateral, firms that manage SRI strategies have found it difficult to participate in securities lending programs.
Citi said its new capability can help clients optimize portfolio performance while meeting their SRI goals. Citi’s solution was developed in partnership with ESG research firm Sustainalytics and enables SRI clients to apply customized multi-dimensional ESG screens to create a universe of eligible securities for investment by the collateral management team.
"Money managers are increasingly incorporating ESG factors into their investment analysis, decision-making and portfolio construction process, creating new demands for investing products and services," said Tim Douglas, Global Head, Securities Finance, Global Transaction Services, Citibank, N.A. "We are responding to our clients needs with a solution that supports SRI requirements and reinforces our commitment to run our business in a manner that benefits society and the environment."
Citi’s new SRI offering is available to securities lenders through OpenLendSM, a boutique service to enhance portfolio performance by delivering an open architecture that provides access to Agency, Third-Party, Hybrid and Exclusives lending.
Global Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citigroup’s Global Transaction Services supports over 65,000 clients. As of the first quarter of 2011, it held on average $355 billion in liability balances and $13 trillion in assets under custody.
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Tim Douglas is socially responsible? Hardly! Ask the people he has marginalized and terminated over the years to satisfy his huge ego.Thisis the same person,who if he had his druthers would have taken sec lend cash and invested it in Citibank SIV commercial paper issuance.
Timmy the tyrant..socially responsible? He has one mission…to get a bigger paycheck. He supports employees who give borrowers a larger rebate on loans at the expense of beneficial owners. He is what is wrong with Wall Street ….do business here at your own expense.