BlackRock has announced that the head of Citigroup’s investment management arm has joined the firm to lead a new initiative overseeing approximately $80 billion of the bank’s wealth management clients. This move follows an agreement between the two financial giants in September, designed to shift the management of a significant portion of Citigroup’s client portfolios to BlackRock under the name ‘Citi Portfolio Solutions Powered by BlackRock.’ BlackRock is an investment management company that provides a range of investment and risk management services. Citigroup is a global financial services company offering banking and investment services.
Rob Jasminski, formerly the head of Citi Investment Management (CIM), has transitioned to BlackRock alongside a team from Citigroup’s investment management division, effective Monday. They will serve as portfolio managers for the newly formed initiative. Citigroup had previously indicated that the agreement was expected to commence in the fourth quarter of 2024.
Under the agreement, clients currently managed by CIM will continue to receive wealth advice, asset allocation support, and strategic guidance from their existing Citigroup private bankers. BlackRock will take responsibility for designing and implementing portfolio strategies, while Citigroup will integrate BlackRock’s Aladdin Wealth platform to support its private bankers and investment staff. This partnership reflects a broader trend among major banks to collaborate with specialist asset managers.
Citigroup CEO Jane Fraser’s restructuring efforts to streamline operations and enhance profitability within its wealth management franchise have supported this strategic decision. Kerry White will take over from Jasminski as head of CIM, reporting to Keith Glenfield, global head of investments at Citigroup’s wealth unit. The expanded agreement is anticipated to attract additional inflows and provide BlackRock with increased access to Citigroup’s private markets investment strategies.
