LONDON--(BUSINESS WIRE)--Citi has launched a new analytics framework and data visualisation tool that measures the performance of a currency hedged share class versus the performance of the base currency share class, and attributes any deviation in performance to its various sources. The performance attribution tool is the latest enhancement to Citi’s passive currency overlay services and can be accessed via Citi Velocity, the firm’s online client portal.
Citi share class hedging services are available for funds, which have share classes in currencies other than the fund’s base currency, to support international distribution. The objective of share class hedging is to mitigate investors’ exposure to foreign currency risk, at a time when fund managers are increasingly looking to their currency overlay providers for help in analysing performance.
“We are excited to deliver this level of analysis and transparency to our custody clients,” said Sanjiv Sawhney, Global Head of Custody and Fund Services at Citi. “In order to better serve their international end-investors and achieve their growth objectives, our clients need a global partner that can help them manage currency risk, and also help them understand and explain the factors driving deviations in performance.”
Citi’s share class performance attribution tool is based on proprietary analytics that can identify the sources of performance deviation from foreign currency hedging. The tool analyses a variety of factors that can impact the performance of the hedged share class, relative to the unhedged share class.
“Citi is continuously looking for ways to empower our clients through the aggregation, analysis and visualization of data.” said Krista Deitemeyer, Global Head of Custody FX at Citi. “This share class performance analytics and reporting tool brings to bear our expertise across CitiFX Quantitative Investor Solutions and Citi Custody and Fund Services.”
With over $22.3 trillion of assets under custody and administration1 and the industry-leading proprietary network spanning over 60 markets, Citi’s Custody and Funds Services business provides clients with in-depth local market expertise, advanced processing technologies and a wide range of fund services that can be tailored to meet clients’ needs.
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. Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
1 Q2 2019