Citibank 2005 Annual Report Download - page 19

17 | Citigroup 2005
Global Wealth Management proved that by combining the unique strengths,
scale, and expertise of our businesses, we can provide the intellectual lead-
ership our clients demand as we address their wealth management and
investment research needs.
In the year since the formation of
Global Wealth Management—com-
prising Citigroup Smith Barney, The
Citigroup Private Bank, and Citigroup
Investment Research—the value of
bringing these businesses together has
become even more evident.
The combination of Smith Barney and
The Private Bank created one of the
largest wealth management businesses
in the world, with more than 14,000
fi nancial advisors and private bank-
ers and $1.4 trillion in client assets.
Citigroup Investment Research is one
of the leading research fi rms on Wall
Street, with more than 300 research
analysts providing objective and
innovative research for institutional
and individual clients globally.
In 2005, we earned $1.2 billion on
revenues of $8.7 billion.
Neither size nor research capabil-
ity alone defi nes Global Wealth
Management. It’s the combination of
the two that sets us apart; together, they
are uniquely equipped to provide the
insight, advice, and solutions our clients
need to achieve their fi nancial goals.
CLIENT ADVOCACY
At the core of the Global Wealth
Management strategy is client advocacy.
Our goal is not simply to sell investment
products to our clients; rather, our goal
is to help clients navigate the complex
and ever-changing array of options and
successfully manage their fi nancial lives.
The 2005 sale of the Asset Management
business to Legg Mason in exchange
for Legg Mason’s Wealth Management
business is a dramatic illustration of our
commitment to this principle. This deal
was a watershed event in the wealth
management industry: by selling our
in-house asset management business, we
eliminated potential or perceived con-
fl icts and reaffi rmed our commitment to
bringing the best wealth management
solutions to clients.
Building on our commitment to client
advocacy, we introduced Smith Barney
Advisor in 2005. The program helps
clients manage their accounts against
asset-allocation guidelines developed in
consultation with their Smith Barney
Financial Advisor. In this model, the
fi nancial advisor’s sole task is to pro-
vide the client with sound investment
advice and, importantly, clients are
charged a fee based on the size of the
account, not transaction volumes.
Our clients have responded over-
whelmingly. In just seven months,
client assets in Smith Barney Advisor
grew to more than $3.5 billion. We
continued to see strong investor prefer-
ence for other fee-based services, with
fee-based revenues hitting an historic
high in 2005, accounting for nearly 50
percent of total revenues.
The Citigroup Private Bank (CPB) is
also focused on client advocacy—pro-
viding intellectual and fi nancial capital
to some of the world’s most infl uential
entrepreneurs and families. To help
these clients accomplish their fi nancial
and business goals, the CPB created
teams of fi nancial specialists—led by
private bankers who work with other
experts from across Citigroup—to
focus on the unique requirements of
various wealth sectors, such as law
fi rms, real estate developers, fi nancial
sponsors, and entrepreneurs.
Global Wealth Management
Individuals...I nstitutions...Corporations...Governments...Foundations