Salomon Smith Barney Asset Management and Citibank Global Asset Management Announce Integration of Businesses in Australia

Business Wire, Jan 21, 1999

New York--(BUSINESS WIRE)--Jan. 21, 1999--SSB Citi Asset Management Group announced today that its two Australian investment operations, Salomon Smith Barney Asset Management Australia (SSBAM Australia) and Citibank Global Asset Management (CGAM), will be integrated. When the integration is completed, SSB Citi Asset Management Group will be represented in Australia by SSBAM Australia.

All asset management functions previously undertaken by CGAM will be transferred to SSBAM Australia, including the management of all individual mandates and investments in individual unit trusts. As a result of this integration, some of the senior CGAM staff will be reassigned within SSB Citi Asset Management Group in other countries or within the wider Citigroup network in Australia.

SSBAM Australia will continue to offer and market wholesale investment products to institutional investors, including retail master trusts and superannuation funds. SSBAM Australia has over $5 billion in assets under management and offers an extensive range of tailored and pooled investment products across all asset classes.

Citibank will continue to offer, market and administer a range of retail investment products, with SSBAM Australia taking the role of underlying asset manager. (Assets in U.S. dollars.)

Guy Strapp, Managing Director, SSBAM Australia, will be responsible for the Group's asset management business in Australia and New Zealand.

"We are working with Citibank to build our combined market share in the fast growing retail investment market," Guy Strapp said.

Evidence of the new approach can be seen in the recently launched Citibank Retirement Funds, which are promoted and sold under the Citibank brand, with SSBAM Australia managing the investment of the underlying assets.

In Australia, Citibank is a well respected brand within the retail financial services market, while SSBAM Australia is better known for its institutional and investment management expertise.

"Essentially, we are utilizing the two organizations' strengths in such a way as to maximise our value offering and capitalise on our global parentage," Strapp added.

SSB Citi Asset Management Group is comprised of the substantial resources that are available through its three primary asset management business platforms: Salomon Brothers Asset Management and Smith Barney Asset Management - both divisions of Salomon Smith Barney Inc. - and Citibank Global Asset Management. The SSB Citi Asset Management companies offer institutional, high-net-worth and retail clients a broad range of investment disciplines from global investment centers around the world. Products and services offered include mutual funds, closed-end funds, managed accounts for high net worth clients, institutional managed accounts, variable annuities and unit investment trusts. Aggregate assets under management exceed $325 billion.

SSB Citi Asset Management Group has a strong product balance among equities, fixed income and liquidity products with approximately $100 billion in each category. SSB Citi Asset Management Group also has a strong geographic balance with aggregate assets under management of approximately $225 billion in the US, $60 billion in Europe, $15 billion in Japan, $10 billion in Latin America, $8 billion in Asia Pacific, and $5 billion in Australia.

Citigroup, which was formed by the merger of Citicorp and Travelers Group Inc., provides a broad array of financial products and services to 100 million consumer and corporate customers through operations in 100 countries and territories. Among its businesses are Citibank, Commercial Credit, Primerica, Salomon Smith Barney, SSB Citi Asset Management Group, Travelers Life & Annuity and Travelers Property Casualty.