Our Progress. North America Client Advisory Board for Investment Managers

Transcription

1 Our Progress North America Client Advisory Board for Investment Managers

2 Recap from our last meeting Based on your feedback, these are the areas we have focused on over the last 10 months Brand and Positioning Establish a brand in the industry, i.e. what is Citi known for in the Investor space? Highlight Citi s differentiators Business Development Improved marketplace presence Securities and Fund Services Business Product Focus & Strategy Operations Update & Overview Technology and Platforms Client Service Excellence What we are doing to meet your service needs, and exceed your expectations Client Excellence 1

3 Brand and Image

4 Packaging the Offer A branded marketing name for investor services capabilities helps distinguish the offer from generic service SM nomenclature. Citi OpenInvestor is a name conceived to represent the value proposition and a clientcentered solutions platform. KNOWLEDGE PERFORMANCE FOCUS We understand client needs and objectives FLEXIBILITY Citi OpenInvestor SM CONNECTIVITY CREDIBILITY We know how to align Citi capabilities with client needs 2 Brand and Image

5 Defining the Offer A concise description of client benefits SM Citi OpenInvestor connects investors to our specialized expertise and global network providing customized investment services across asset classes, strategies and geographies that help them meet their performance objectives. Connectivity Knowledge Citi OpenInvestor connects investors to our specialized expertise and global network providing customized investment services across asset classes, strategies and geographies that help them meet their performance objectives. Credibility Flexibility A concise description of client benefits. Performance Focus Connectivity 3 Brand and Image

6 Competitive Context Helps to Confirm Assumptions Emphasizes know-how and client-driven connectivity SM Citi OpenInvestor connects investors to our specialized expertise and global network providing customized investment services across asset classes, strategies and geographies that help them meet their performance objectives. Emphasizes size and strength JP Morgan J.P. Morgan Worldwide Securities Services is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. Worldwide Securities Services leverages the firm's unparalleled scale, leading technology and deep industry expertise to service investments around the world. It has $16.1 trillion in assets under custody and $7.3 trillion in assets under administration. Emphasizes customer relationship and approach BNY Mellon As a global leader in asset servicing, brokerdealer & advisory services and issuer services, BNY Mellon Securities Servicing has pioneered innovative ways to serve clients worldwide and prepare them for evolving market challenges, from new product launches to the development of cutting-edge technology. The breadth of our securities services capabilities is matched by an ardent and firm commitment to our clients, collaborating with them to create workable solutions to meet their specific needs. Emphasizes quality and value of proprietary capabilities State Street Our investment servicing business, now known as State Street Global Services, provides the essential financial infrastructure for delivering effective investment servicing solutions globally. Our capabilities in asset servicing, operations outsourcing and analytics enable our clients to manage operational risk, optimize their cost structures, enhance the value of their services and act on growth opportunities across all major markets. Our combination of consistency and creativity is what helps our clients face the future with confidence. 4 Brand and Image

7 Expressing the Competitive Difference An over-arching theme What sets Citi apart? Expertise is the advantage. SM 5 Brand and Image

8 Messaging Objectives for 2012 Communicating the Citi Investor Services value proposition to clients and prospect Segment based marketing programs that communicate the value to clients of Citi s global breadth and depth of capabilities for: Asset Managers, Hedge Funds, Private Equity, Wealth Managers and Institutions Media presence that demonstrates expertise in addressing client challenges, eg: Impact of convergence and business growth strategies on legacy platforms Increased demands from investors around transparency and risk Regulatory change placing more demands on investor reporting, OTC Derivatives operations and collateral management Event strategy that showcases how Citi s global footprint helps bridge the gap between clients and markets, delivering capabilities to: React to investment opportunities faster Provide direct access to local market experts Support in developing local distribution channels 6 Brand and Image

9 Business Development

10 New Business & Market Visibility New Business Argonaut (Custody) Industry Awards and Recognition Centerbridge Capital Partners (Hedge and Private Equity Fund Administration) City of Fort Worth (Securities Lending) Clearstream (US Direct Custody) Credit Suisse Asset Management Alternatives (Full service Middle and Back Office Services across a variety of products) Diamond Hill (Custody, Fund Accounting, Transfer Agency, Securities Finance) Empire Life (Transfer Agency, Global Custody, Fund Administration, Securities Lending) EOS Partners (Bank Loan and Hedge Fund Admin) Mirae Asset Global Investments (Global Custody, Fund Services) Oak Hill (Fund Administration, Alternative Custody) Old Mutual Asset Management Trust Company (Fund Services) Sagicor Life Jamaica Limited (Hedge Fund Admin, Global Custody) Scout Capital Management (Alternative Custody) SEI Investments (US and Global Custody) USAA (Securities Lending) 7 Business Development

11 Citi s Thought Leadership Making Headlines in Business Development

12 Securities and Fund Services Business

13 Product Accomplishments for 2011 North America Product Initiatives for 2011 Innovation and product offerings for new asset classes/structures ETFs Hedge Fund of Fund Middle Office Service Private Equity Limited Partner Services Collateral Management Bank Loans OTC Derivative Services Credit Products Increasing support for Loans as an Asset Class, including loan custody/servicing in coordination with SFS Custody and Middle Office Expansion of OpenWealth TM service offerings Integration with trust accounting and custody services Earnings Credit Rate program for Custody cash balances Socially responsible investment solutions to securities lending cash collateral investment program 9 Securities and Fund Services Business

14 Strategy: Network 3.0 Network 3.0 is about enhancing the Client experience across SFS, leveraging three key elements of differentiation 1. Network bank Connecting countries to clients Emerging market leadership BENEFITS Allows Citi to fully leverage the power of our network and to demonstrate the benefit of our globality Revolutionary tools will showcase our innovation and crystallize the benefits of our technology for clients For Clients: 2. Digitization Converting data into client relevant insights Access information where and when needed e.g. Mobile, Cloud 3. Client Centricity Focusing on client experience, not products Better flow of information driven by Citi s transparency tools, enabling new growth opportunities, new strategies and product innovation Potential for competitive alpha generation based on: For Citi: improved decision making data better cut-off times optimized investment / financing alternatives cost reductions enhanced risk management development of new business operating models Improved client satisfaction Differentiated value-proposition Connected solutions 10 Securities and Fund Services Business

15 Our Operations SFS Operations transformation programs drive continuous improvement while fostering client service excellence Global Operating Model & Architecture Our global operating model is driven by a continuous focus on 7 major building blocks: 1. Infrastructure 2. Data 3. Service Processors 4. Workflow 5. Information Warehouse 6. Reporting 7. Client Delivery & Service Global Processing Philosophy Continuous Improvement Lean Culture Lean is a program embedded in the organization that creates a culture of continuous improvement. Lean focuses on improvements across: Client service Risk and control Efficiency Productivity Employee mindsets Client centric models across the organization Global operating models for all businesses Common processes through central utilities Flawless execution across all functions Culture of continuous improvement Shareholder value through risk and control focus Best in class talent with unparalleled industry knowledge Organizational Impact To Date Number of Employees Participating Productivity Created 21% # of projects 32 (22 Completed / 10 In Progress) # of sites 12 2, Securities and Fund Services Business

16 Operating Architecture Building Blocks Global Operating Model and Architecture 7 interrelated building blocks creating the foundation for our future state operating model and architecture 1 Infrastructure / Transformation Defines common, configurable, and custom principles to be leveraged across all businesses 2 Data Market information gathered and used consistently across the bank 3 Service Processors Systems driving business specific processes 1 Operating Model 4 Workflow Proactive exception management rather then reactive reconciliation management 5 Information Warehouse Acts as the sole source of information for all reporting 6 Reporting Consistent look and feel across all products driven by Electronic Markets 7 Client Skilled and structured client facing staff leverages the other building blocks to exhibit our value proposition Confidential Securities and Fund Services Business

17 Global Processing Philosophy Global footprint, with a processing philosophy that balances the need for scale vs. client customization Footprint Key Metrics Proprietary Network Third Party Agents Service COE Centers Locations 93 Markets covering 99% of global market capitalization Fund Services in 30 markets 8 Regional Service Centers 65+ processing sites 6,900 staff 650+ dedicated client staff Over 7 million securities and funds transactions processed monthly Processing Philosophy Common Global platform, common practices Global Centers of Excellence Functional SMEs Configurable Regionalization of global platform Regional Centers of Excellence Market & business SMEs Custom Client proximity, tailored delivery Local market expertise Client SMEs 13 Securities and Fund Services Business

18 Technology Global standardization of platforms and improved data management capabilities 2011 Accomplishments 2012 Priorities Global Platforms: Transformational projects were initiated for Custody, Order Generation, and Asset Servicing to integrate, standardize, and consolidate into one global solution Total Cost of Ownership: Retiring legacy systems, reducing complexity and consolidating into global solutions Talent: Talent review resulted in new leadership across multiple disciplines. Sourcing talent from buy side firms Middle Office: Expansion of product complexity (FX, Commodities, OTC) Imaging and Workflow: Standardize imaging, reduce risk and paper, increase straight through processing Global Platforms: We will continue with multi year initiatives to standardize and continue to leverage Citi s global footprint Global Quality Assurance: We will continue to build out our QA and Testing platform to support the integration and global expansion. The goal is to continue to improve our execution and provide predictable, reliable, metrics-based service to our clients Data Management: Leverage enterprise reference data and data warehouse initiatives to continue developing strategic data assets Middle Office: Continue product expansion Imaging and Workflow: Continue to roll out IWA globally 14 Securities and Fund Services Business

19 Client Service Excellence

20 Strategy & Accomplishments How we ve positioned our approach to service to meet your needs Objectives Deliver clients with the feel of a boutique service, supported by an industrial strength organization spanning more than 60 countries Execution Dedicated Client Executives, with teams located in major centers (New York, Boston, San Francisco), as well as in our COEs (Columbus, Roseland, and Tampa) Rapid resolution of client issues Firmly instilled processes and defined mechanisms for escalating client issues Have the ability to respond to complex requests with the flexibility to accommodate changing client needs Close coordination with Operations and Technology through the Virtual Team process Recruit and foster industry expertise and experience Competitive talent strategy recruit industry experts; train and up-tier our best and brightest globally-minded talent 15 Client Service Excellence

21 Client Excellence Living Client Values 16 Client Service Excellence

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