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These excerpts taken from the C 8-K filed Jun 7, 2005. Asset
Management includes Citigroup
Asset Management, the Banamex asset management and retirement services
businesses and Citigroup’s other retirement services businesses in North
America and Latin America. These
businesses offer institutional, high-net-worth and retail clients a broad range
of investment alternatives from investment centers located around the
world. Products and services offered
include mutual funds, closed-end funds, separately managed accounts, unit
investment trusts, alternative investments (including hedge funds, private
equity and credit structures), variable annuities through affiliated and
third-party insurance companies, and pension administration services.
Asset
Management manages on a third-party basis following the August 2002
distribution by Citigroup to its stockholders of a majority portion of its
remaining ownership interest in TPC.
(3) See Footnote (7) to the table on page 3.
Asset Management
reported net income of $258 million in 2004, a decline of $135 million or 34% compared to 2003. The decrease is primarily a result of
increased legal expenses and the establishment of a reserve related to the
expected resolution of the previously disclosed SEC investigation of transfer
agent matters, as well as the termination of the contract to manage assets for
St. Paul Travelers, partially offset by the absence of a loss on the sale of an
El Salvador retirement services business of $10 million, the impact of positive
market action and the cumulative impact of positive net flows. Net income of
$393 million in 2003 was up $19 million or 5% compared to 2002, primarily
reflecting the cumulative impact of positive net flows, lower expenses and
lower capital funding costs in Mexico, which was partially offset by a loss on
the sale of an El Salvador retirement services business of $10 million, reduced
fee revenues in CAM due to changes in product mix and revenue sharing
agreements with internal Citigroup distributors, and the cumulative impact of
outflows of U.S. Retail Money Market Funds.
The table below shows net income by region for Asset Management:
Asset
Management net income
decreased $135 million in 2004 from the prior year primarily reflecting a
$136 million decrease in North America (excluding Mexico) reflecting increased
legal expense. Latin America net income
of $40 million in 2004 increased $13 million from 2003, resulting from the
absence of a loss on the sale of an El Salvador retirement services business of
$10 million. Japan net income of
$9 million in 2004 increased $4 million from 2003. Asia net income in 2004 of $8 million
increased $3 million from 2003.
EMEA net income of ($2) million in 2004 represented a decrease in
income of $10 million from 2003, primarily related to the transfer of CAI
Institutional performance fees to North America beginning in 2004 and higher
expenses in Asset Management.
Mexico net income of $99 million in 2004 decreased $9 million from 2003,
primarily due to the impact of higher tax rates,
partially offset by lower capital funding costs and higher business volumes.
18
The following table is a roll forward of assets under management by business as of December 31:
Asset Management.
Mexico net income of $99 million in 2004 decreased $9 million from 2003,
primarily due to the impact of higher tax rates This excerpt taken from the C 8-K filed Apr 15, 2005. Asset Management
— Revenues and income declined due to a reduction in customer activity and increased expenses. AUMs declined 3% from the first quarter of 2004, to $460 billion, primarily reflecting the termination of a contract to manage $37 billion of assets for St. Paul Travelers, which was partially offset by positive net flows of $19 billion and increased market valuations. — Net inflows during the quarter were $12 billion. • | EXCERPTS ON THIS PAGE:
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