Citibank and Schroders link-up for alternatives

Citibank and Schroders have joined forces to launch new multi-manager solutions for European investors. The new multi-manager range – which will be actively managed by Schroders – will include alternative investments such as private equity and hedge funds, available for the first time to Citibank clients. The portfolios, which have different risk-return characteristics, will be initially offered to investors in Germany, Greece, Italy, Spain, UK and Jersey. Tobias Griess, head of wealth management for EMEA at Citibank said that allocating a proportion of clients’ portfolios to alternative investments will enhance diversification, this way maximising returns and minimising risk. Multi-manager solutions as an addition to single funds open architecture is in some countries the only way to gain access to alternative investments, he added. This new agreement is a sign of Schroders’ recent progress. Previously, Schroders’ outsourced its own private clients’ assets to be managed by Russell on a multi-manager basis. Now due to better performance, not only have the funds been taken back in-house, but other private banks are looking to Schroders to run their money too. Schroders has launched three multi-manager/multi-asset portfolios in the UK in the past couple of years, including the S&P cautious managed fund, which has outperformed the sector average since its launch. The other two funds, the S&P strategic balanced portfolio and the S&P high alpha portfolio, have also delivered higher returns than the average fund in the sector since their launch in 2004 (see table).

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