Citi Enhances Securities Lending Cash Collateral Investment Program to Include Solutions for Socially Responsible Investors
New York, NY — May 5, 2011 — Citi today announced that it has added socially responsible investment solutions to its securities lending cash collateral investment program. 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 31 December 2010, over $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 programs.
Citi’s new capability creates a solution that helps clients optimize 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 customized 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, N.A. “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.”