Sydney/Hong Kong – Citi Australia today announced it had been appointed by leading Australian fund manager BetaShares as their provider of Custody and Fund Administration services.
The strategic partnership comes at a time of exponential growth for BetaShares, who manage the broadest range of exchange traded funds (ETFs) in the Australian market.
"We are thrilled to partner with BetaShares, one of Australia's largest and most innovative ETF managers. With over $21 billion in assets under management, they are a leader in the category, and we look forward to working with them as they expand their market presence and grow their product suite for investors," said Luke Randell, Head of Markets and Securities Services for Citi Australia.
ETF providers have a unique set of needs, different to that of other fund managers. ETF ownership has evolved in recent years, broadening beyond the retail and self-managed super fund segment to include increased participation by institutional clients and greater ownership through self-managed accounts and model portfolios. Citi has been growing its ETF management suite across markets globally to meet this demand.
"It is Citi's goal to support ETF providers through their entire lifecycle, from market-making to execution, administration to reporting. We have designed a fully integrated front to back office service model to support BetaShares," added Mr. Randell.
Continuing to expand its ETF offering, BetaShares launched its Crypto Innovators ETF (ASX:CRYP) to the ASX on Thursday last week, providing investors exposure to a portfolio of global companies that are at the forefront of the crypto economy.
"Citi is uniquely placed to assist us to execute on our plans to expand our suite of investment solutions for our growing investor base. We are confident in Citi's ability to provide the required operational support towards our efforts to continually improve the experience for our investors," said BetaShares CEO, Alex Vynokur.
Commenting on the news, Julie Kerr, Citi's Head of Custody and Fund Services for Asia Pacific said; "Australia is and continues to be an incredibly important growth market for our Securities Services business as well as the wider Citi franchise. Being appointed by a leading fund manager such as BetaShares is an incredible vote of confidence in the services we provide."
The announcement comes as Citi's Custody and Fund Services business continues a strong growth trajectory across Asia Pacific. Citi Australia recently welcomed 24 new clients in the past 18 months. These clients are primarily transitioning to Citi following a client transfer agreement with Royal Bank of Canada (RBC) in 2020.
With over $30 trillion1 of assets under custody and administration and the industry-leading proprietary network spanning over 60 markets, Citi Securities Services provides clients with extensive on-the ground local market expertise, innovative post-trade technologies, customized data solutions, and a wide range of custody and fund services that can be tailored to meet clients' needs.
1 As of Q2 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.
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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BetaShares Capital Ltd (ACN 139 566 868 AFS Licence 341181) ("BetaShares") is a leading Australian fund manager specialising in exchange traded products ("ETPs") which are traded on the Australian Securities Exchange. BetaShares offers the broadest range of ETPs on the ASX, covering Australian and International equities, bonds, cash, currencies, commodities and alternative strategies. BetaShares currently manages over $21 billion in assets under management.