Citi Securities Services Wins ETF Mandate from Nuveen

July 2, 2024 : Citigroup Inc. (C), through its subsidiary Citi Securities Services, has secured a significant new mandate from Nuveen, a leading global investment manager. This agreement signifies a strategic expansion of Citi’s Exchange Traded Fund (ETF) services business and further strengthens its position within the growing ETF market.

The mandate, announced on July 1, 2024, entails Citi Securities Services onboarding 23 new ETFs with a combined value of approximately $9 billion. These ETFs encompass transparent and non-transparent structures, catering to a wider range of investor preferences and risk profiles.

This win for Citi represents a continuation of its existing relationship with Nuveen. Notably, Nuveen’s parent company, TIAA, already utilizes Citi’s Securities Services and Treasury and Trade Solutions offerings. This broader relationship underscores Nuveen’s trust and confidence in Citi’s capabilities.

The agreement leverages the increasing connectivity between Citi’s various business units. By seamlessly integrating its ETF services with other functionalities, Citi aims to provide Nuveen with a holistic client experience that addresses their needs across multiple areas.

“With this mandate, we are committed to using our global network and fund accounting expertise to provide Nuveen with a seamless client experience as we continue to expand our ETF Services business globally,” stated Peggy Vena, Head of ETF Services for Citi Securities Services.

A key advantage of Citi’s solution for Nuveen lies in its utilization of the advanced Citi ETF system (ACES). This proprietary platform facilitates automation across the entire ETF lifecycle, encompassing basket creation, order processing, settlements, and daily order management. Additionally, ACES offers real-time updates within the Investment Book of Record (IBOR), ensuring transparency and efficient information flow.

The recent acquisition of these ETF mandates underscores Citi’s reputation for excellence within the ETF services industry. The firm’s proven track record, combined with its focus on innovative technology and comprehensive service offerings, has evidently positioned it as a preferred partner for asset managers seeking to navigate the dynamic ETF landscape.

Looking ahead, the success of this mandate will likely hinge on Citi’s ability to deliver on the promised benefits of automation, efficiency, and a seamless client experience. As the ETF market continues to experience significant growth, Citi’s strategic partnership with Nuveen positions it well to capitalize on this expanding opportunity.

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