Re Agreement
Banco Santander Central Hispano SA
8 April 2002
CITIBANK & SANTANDER CENTRAL HISPANO REACH
AGREEMENT ON ASSET MANAGEMENT IN SPAIN
• Citibank moves forward in its Independent Advice Service with the distribution
of Santander Central Hispano's mutual and pension funds
• Santander Central Hispano will acquire the local management companies of
Citigroup's Spanish domiciled mutual and pension funds.
• Citigroup Asset Management, the international asset management division of
Citigroup, will reinforce its strategy for global funds.
MADRID, April 8th, 2002 - In a move which enables both Santander Central
Hispano and Citigroup to successfully pursue their respective strategies for
asset management, an agreement has been announced today by which Citibank
Espana, Citigroup's Consumer Banking vehicle, will begin to market through its
branches, local mutual and pensions funds presently managed by Santander Central
Hispano.
As part of the agreement, Santander Central Hispano Asset Management will
acquire the local management companies of Citigroup's Spanish domiciled mutual
and pension funds. Santander Central Hispano will manage these funds, which have
up until now been managed by Citigroup, and which represent a total of 987
million euros as of March 31st, 2002.
In addition to optimizing the strategic priorities of both companies, this
transaction, in which the mutual funds will be managed by Santander Central
Hispano under the trademark 'Citi', ensures for Citibank clients the
continuation of quality and service levels in accordance with global first-class
standards. Furthermore, it also achieves employment continuity for the employees
of the 'Citi' funds business.
Citibank Espana will continue to market these funds in its offering to its
Spanish clients and, as mentioned above, will add the wide range of funds
managed by Santander Central Hispano Asset Management, enhancing its Independent
Advice Service.
Through this service, Citibank's clients have access to a wide variety of mutual
funds from some of the best fund management companies in the world. Moreover, in
order to assure an independent product selection, Citibank incorporates Standard
& Poors ratings across its advisory process.
Presently, Santander Central Hispano Asset Management is the leader in Spain,
managing assets in excess of 61 billion euros, and enjoying a recognized track
record of product innovation, consistent results and strong internal control.
Citigroup Asset management, which remains committed to its commercial presence
in Spain, will concentrate asset management activities on its global funds.
These funds, which total 11.9 billion euros, are domiciled in Luxembourg.
Also within the agreement, which is subject to approval from the usual
governmental agencies and internal regulatory requirements, Santander Central
Hispano Investment will assume the legal position of depository of the
Citigroup's Spanish domiciled mutual and pension funds.
Schroder Salomon Smith Barney advised Citigroup in this transaction.
Santander Central Hispano Gestion de Activos develops its activities in the
Iberian peninsula and in Latin American, with total assets under management in
excess of 92 billion as of March 31, 2002. Mutual and pensions funds are
distributed in Spain under Santander Central Hispano, Banesto and BSN Banif
brands. Total staff in Spain comes to 400 employees, with more than a hundred
investment professionals serving three million clients and 61 billion € under
management. It has a market share in Spain of 26.2% in mutual funds.
Santander Central Hispano is the leading financial group in Spain and in Latin
America, with a total of 40 million customers in 40 countries across the globe.
It offers a full range of retail and global wholesale banking products and
services, provided by its more than 110,000 employees in nearly 10,000 branches.
The Group has a market share of 17% in the Iberian peninsula and more than 10%
in Latin America.
Citigroup Asset Management is comprised of the substantial resources that are
available through its three primary asset management business platforms: Salomon
Brothers Asset Management, Smith Barney Asset Management, a division of Salomon
Smith Barney Inc., and Citibank Global Asset Management. Citigroup Asset
Management companies offer institutional, high net worth and retail clients a
broad range of investment disciplines from global investment centers around the
world. Products and services offered include mutual funds, closed-end funds,
separately managed accounts, unit investment trusts and variable annuities
(through affiliated and third party insurance companies). Aggregate assets under
management totaled $416.9 billion as of December 31,2001.
Citigroup (NYSE: C), the preeminent global financial services company with some
200 million customer accounts in more than 100 countries, provides consumers,
corporations, governments and institutions with a broad range of financial
products and services, including consumer banking and credit, corporate and
investment banking, insurance, securities brokerage, and asset management. Major
brand names under Citigroup's trademark red umbrella include Citibank,
CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers. Additional
information may be found at: www.citigroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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