Citi Continues Asian Development With Mandate Win

Citi Securities and Fund Services has been appointed trustee and local custodian for South Koreas Hanwha Investment Trust Management Co
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Citi Securities and Fund Services, a division of Global Transaction Services, has been appointed trustee and local custodian for South Koreas Hanwha Investment Trust Management Co (Hanwha ITMC).

Under the deal, Citi will act as trustee in Korea and local custodian in China for Hanwha ITMCs recently launched Qualified Foreign Institutional Investor (QFII) fund products to be launched in the market later this year.

Under Korean law, trustees are mandatory for Korea-domiciled funds, and Hanwha becomes the latest domestic client to leverage Citis experience in this market. Upon partnering with Citi, it will receive a range of services including relevant information gathering, knowledge transfer, market access, relationship and networking in China. In appointing Citi as local custodian in China, Hanwha ITMC will also leverage off Citis extensive knowledge of the QFII market in China.

Citi have seen investment in Asia come to fruition in recent weeks. Citi China is opening a new lending company located in the town of Chibi in Hubei Province; Citibank Thailand has launched a new international SOS Service, and Citi recently announced that it has launched Automated Trading access and Algorithms for Malaysia, allowing global clients of Citi to place electronic orders to Bursa Malaysia.

The Hanwha win is significant for Citis Securities and Fund Services business for several reasons. The latest QFII license approval of Hanwha marks the first Korean asset management client of Citi to receive application approval to invest by the China Securities Regulatory Commission (CSRC). Additionally, by winning the Hanwha ITMC mandate, Citi continues to build on its solid position in providing market leading trustee and custody services for Koreans most prestigious asset management firms investing into China through the QFII scheme.

In providing us both domestic trustee services in Korea and local custody capabilities in China, Citi provided us a suite of services that ideally complemented our preparation of latest QFII fund launch says Chul-Hoon Kim, CEO of Hanwha ITMC. We are pleased to partner with Citi and look forward to working closely on this important investment in China

Hanwha ITMC will aggressively enter the China market and we are proud to partner with them with their latest QFII fund says Harle Mossman, managing director and regional head of investor services, securities and fund services. Our success in providing custody and trustee services for Korean QFII applications has been extremely solid and we expect to only deepen this expertise with the Korean asset management industry as more applications are approved by CSRC

Additional reporting by Diana Cafard