Securities and fund services solutions for a pension fund in Asia

This client is one of the largest pension funds in the world.

The challenge

The client is recognized as one of the largest public pension funds in the world. By providing valuable services and essential assistance to people, it is well positioned as a trustworthy public institution to safeguard people's livelihoods in its local country. The fund covers public and private employees and the self-employed. With a growing number of beneficiaries, the fund aims to increase its total assets under management over the next two years by expanding its investment in foreign securities. In reacting to the new investing strategy and phenomenal growth in recent years, the pension fund was looking for a new global partner with an established securities and fund business franchise worldwide. The new service provider would have to meet the fund's requirements for global custody and securities lending operations as well as local on-the-ground support.

Citi was appointed for the pension fund's investment portfolios through a unique service arrangement. In this role, Citi needed to ensure optimal service support to meet the client's tight timeframes in terms of day-to-day settlement of investments and reporting.

The solution

Utilizing the largest proprietary network in the industry, which covers more than 90 markets and 95% of the world's market capitalization, Citi put together a solution for the pension fund that met all its global custody, fund accounting and securities lending requirements. Under the solution, Hong Kong acts as the main operational hub for the fund's investments worldwide, while a dedicated service team in the client's local country is available to provide local product, operations and service support. To assist in the monitoring and reporting of investments, Citi helped the client to implement a fund administration platform, which supports numerous asset classes and instrument types. In addition, the client was offered an ongoing program of training sessions and workshops from Citi's team of product experts.

The result

With the solution meeting all the pension fund's requirements, Citi has demonstrated its full understanding of the client's needs as well as its capabilities as a trusted global business partner. Through its local client executive, Citi has been able to support the client in its direct overseas investment. The pension fund has now included Citi as one of its service providers and looks to Citi for feedback on market issues. Citi has also been invited by the client to participate in further request for proposals for provision of securities and fund services solutions for its other investment portfolios.