Citi unveils SRI securities lending solution
06 May 2011 New York
Image: Shutterstock
Citi has added socially responsible investment solutions to its securities lending cash collateral investment programme.
Securities lending clients will now be able to elect to invest cash collateral under socially responsible investment (SRI) principles that consider environment, social and governance (ESG) factors. According to Eurosif, as of December 31, 2010, more than $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 programmes.
Citi's new capability creates a solution that helps clients optimise portfolio performance while meeting their SRI goals. Citi's solution was developed in partnership with Sustainalytics – an award-winning ESG research firm – and enables SRI clients to apply customised 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. "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 OpenLend, a boutique service to enhance portfolio performance by delivering an open architecture that provides access to agency, third-party, hybrid and exclusives lending.
"Sustainalytics is excited about working with Citi to support its pioneering ESG cash collateral management offering," said Michael Jantzi, CEO of Sustainalytics. "Our organisations share a common commitment to innovation and creating solutions that allow clients to integrate ESG into a broad range of their investment activities."
Securities lending clients will now be able to elect to invest cash collateral under socially responsible investment (SRI) principles that consider environment, social and governance (ESG) factors. According to Eurosif, as of December 31, 2010, more than $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 programmes.
Citi's new capability creates a solution that helps clients optimise portfolio performance while meeting their SRI goals. Citi's solution was developed in partnership with Sustainalytics – an award-winning ESG research firm – and enables SRI clients to apply customised 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. "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 OpenLend, a boutique service to enhance portfolio performance by delivering an open architecture that provides access to agency, third-party, hybrid and exclusives lending.
"Sustainalytics is excited about working with Citi to support its pioneering ESG cash collateral management offering," said Michael Jantzi, CEO of Sustainalytics. "Our organisations share a common commitment to innovation and creating solutions that allow clients to integrate ESG into a broad range of their investment activities."
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