Citigroup (NYSE:C) communicated today that they have increased the size of the contract they have with Federated Investors (NYSE:FII) in the managed accounts services they provide for the company.
The specific products used to expand their business with Federated Investors are CitiConnnect and Open(SM)Asm platforms.
These two products are used to help investment companies keep an eye on accounts which are managed separately. The idea is to offer alternatives customized to each account.
Clover Investment Advisors offers managed accounts via investment portfolios for distributors and sponsors.
As of December 31, 2009, Federated had under its management $389.3 billion in assets, which involved 145 funds and a number of individual managed accounts.
Citigroup has offered individual or separately managed accounts for Federated Investors since 2006. Federated has Pittsburgh as its home base.
Terms of the expanded contracts weren’t disclosed.
Citigroup has been pushing hard to divest itself of non-core assets to streamline its operations and focus on key business sectors within the conglomerate.
These types of contracts are solid and predictable income for Citigroup which is a more solid foundation to build on for the company than the risky deals of the recent past.
