Citi Supports the Industry’s Largest Mutual Fund to ETF Conversion
Citi has facilitated a historic conversion of four US tax-managed mutual funds to active ETFs for Dimensional Fund Advisors, totaling $29 billion in assets. The ETFs include Dimensional U.S. Equity ETF, Dimensional U.S. Small Cap ETF, Dimensional U.S. Targeted Value ETF, and Dimensional U.S. Core Equity 2 ETF, listed on June 14, 2021. Citi has expanded its long-standing partnership with Dimensional, enhancing its global custody and fund services. This conversion is expected to set a precedent for future mutual fund to ETF transitions in the industry.
- Facilitated the largest mutual fund to ETF conversion in the industry, totaling $29 billion in assets.
- Strengthened partnership with Dimensional Fund Advisors, expanding service offerings since 1997.
- Citi’s innovative ETF platform is expected to lead to more future conversions.
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Citi has successfully supported the industry’s largest mutual fund to ETF conversion for Dimensional Fund Advisors. The conversion includes four US tax-managed mutual funds into active transparent ETFs totaling
“Citi has been a long-standing service provider to Dimensional's funds and has been a vital partner during this conversion process,” said Gerard O’Reilly, Co-CEO and CIO of Dimensional Fund Advisors. “We are grateful for all of their teams’ hard work and thoughtful execution that have helped make this historic conversion possible.”
“This was a monumental conversion for Dimensional, Citi and the ETF Industry,” said Peggy Vena, Director of ETF Product Development for North America at Citi. “The scope of the conversion is unprecedented, and we expect this transaction to pave the way for many more mutual fund to ETF conversions in the coming years.”
This mandate expands a global relationship between Dimensional and Citi Securities Services that dates back to 1997 when Citi began providing global custody and foreign exchange services. Over the years, the relationship has grown to include agency securities lending, global fund services, transfer agency, middle office and collateral management services. In 2020, Citi was appointed by Dimensional to provide securities services for Dimensional’s new family of actively managed, transparent ETFs. As part of the mandate, Citi provides fund administration, global custody, transfer agency, agency securities lending, and ETF services.
“We are proud to further build on our long-standing relationship with Dimensional by partnering with them on this ground-breaking conversion,” said Dominic Crowe, North America Head of Custody and Fund Services at Citi. “The success and scale of this project demonstrate our commitment and innovative approach to our ETF platform.”
With over
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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1] As of Q1 2021. AUC/A figure separately represents gross assets for which Citi provides Global Custody and sub-custodian services via its Direct Custody and Clearing business and includes Issuer Services. Citi previously reported AUC/A numbers on a net basis, therefore discounting assets serviced by both businesses.
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