Citi Securities Services Wins ETF Mandate from Asset Manager Nuveen
Citi Securities Services has secured a new mandate from asset manager Nuveen, adding 23 new ETFs valued at approximately US$9 billion to its ETF Services portfolio. These include both transparent and non-transparent ETFs. This mandate enhances Citi’s relationship with Nuveen, a long-standing client. The integration will leverage Citi’s Advanced Citi ETF System (ACES) for automated processing, from basket creation to settlements and daily order management. This expansion signifies Citi’s commitment to providing comprehensive services across its global network, addressing client needs holistically. From 2021 to 2023, Citi has added US$425 billion in ETF assets under administration. Citi’s ongoing investments in its ETF servicing capabilities aim to meet evolving client needs and market changes.
- Citi secures a new mandate with Nuveen to manage 23 new ETFs worth approximately US$9 billion.
- Citi has added US$425 billion in ETF assets under administration from 2021 to 2023.
- The integration with Nuveen will leverage Citi's Advanced Citi ETF System (ACES) for automated processing and real-time updates.
- Citi’s ongoing investments in ETF servicing capabilities aim to meet evolving client needs and market changes.
- None.
Insights
Citi's new mandate from Nuveen to onboard
Expansion efforts should lead to higher revenue streams from asset servicing fees, particularly with the existing upward trend in ETF investments. From 2021 to 2023, Citi's addition of
However, increased competition in the ETF servicing space is something to be mindful of. Larger players in the market might also be targeting similar mandates, which could compress margins. Citi's ability to leverage its global network through systems like the Advanced Citi ETF System (ACES) is a strength, potentially offering operational efficiencies and better client service.
Overall, this mandate appears to be a strategic win for Citi, enhancing its market share and service capabilities, which could have positive long-term financial implications for the company.
Nuveen's decision to leverage Citi's ETF Services reflects confidence in Citi's operational capabilities and infrastructure. By adopting the Advanced Citi ETF System (ACES), Nuveen can benefit from the streamlined, automated processing of ETF operations. This emphasis on automation and real-time updates in the Investment Book of Record (IBOR) could lead to improved operational efficiency and reduced errors, which is critical in maintaining investor trust and regulatory compliance.
Key industry terms: Transparent ETFs disclose their holdings daily, while non-transparent ETFs do not, allowing for active management strategies. As investor interest in ETFs continues to grow, the demand for efficient ETF servicing solutions will likely rise, positioning Citi advantageously.
Nuveen's endorsement enhances Citi’s reputation in the ETF servicing market. Investors should note that this relationship exemplifies the trend towards integrated and comprehensive financial services, which can be a competitive advantage for Citi. By offering a holistic suite of services, Citi meets diverse client needs, potentially leading to higher client retention rates and additional business opportunities.
This mandate signifies both operational excellence and strategic client relationships, reinforcing Citi's standing in the market.
The mandate includes the addition of 23 new ETFs of approximately
The mandate further expands Citi’s relationship with Nuveen, an existing Markets client. Its parent company, TIAA, is supported by Securities Services and Treasury and Trade Solutions. Leveraging the increasing connectivity across the bank’s various businesses, Citi is addressing client needs more holistically and across multiple areas.
“We are excited to further expand our relationship with Nuveen across Citi. With this mandate, we are committed to using our global network and fund accounting expertise to provide Nuveen with a seamless client experience as we continue to expand our ETF Services business globally,” said Peggy Vena, Head of ETF Services for Citi Securities Services.
Leveraging Citi’s global Advanced Citi ETF System (ACES), Nuveen will benefit from automated processing across the entire ETF lifecycle, from basket creation, order processing to settlements, and daily order management of positions via real-time updates in the Investment Book of Record (IBOR).
“As an existing client, we look forward to further partnering with Citi in support of our ETFs,” said Briton Ryan, Head of ETFs at Nuveen.
Citi ETF Services supports 12 markets as the business continues to expand. From 2021 to 2023, Citi added
Citi continues to make focused investments to enhance its ETF servicing capabilities to meet clients’ operating requirements and changes in the market landscape. Earlier this year, Citi added FIX API connectivity to its ACES platform to benefit clients and market participants in a T+1 environment. The ETF Services business was also appointed to support the first covered call ETFs listed in
With a focus on enabling the investment process and approximately
Our integrated suite of services, across Custody, Execution, Fund and Issuer Services, and advanced data capabilities, connects and serve clients across the entire trade and investment ecosystem. With a leading proprietary network and universal banking capabilities, we combine the right fit of solutions to help grow our clients’ business into the future.
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of
Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
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1 As of Q1, 2024
View source version on businesswire.com: https://www.businesswire.com/news/home/20240628423258/en/
Media Contact:
Harsha Jethnani
harsha.jethnani@citi.com
+65 93830872
Source: Citi
FAQ
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