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 Citigroups 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.
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.
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.
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.