The banking Group City (NYSE: C) launched their new investment program to give securities lending clients the option to invest cash collateral under Socially Responsible Investment (SRI) principles.
The new program takes into consideration environment, social and governance (ESG) factors and will strengthen an already $11 trillion of assets managed globally in a strategy of SRI. Firms that manage SRI strategies have found it difficult to participate in securities lending programs, without an SRI capability for the investment of cash collateral.
The new programme aims to help clients meet their SRI goals and optimize portfolio performance. The programme was developed in partnership with ESG research firm; Sustainalytics. SRI clients will be able to apply customized multi-dimensional ESG screens to create a universe of eligible securities for investment by the collateral management team.
Citibank’s Tim Douglas said, “”money managers are increasingly incorporating ESG factors into their investment analysis, decision-making and portfolio construction process, creating new demands for investing products and services”. He said the banking group was responding to clients’ needs with a solution that supports SRI requirements and reinforces their commitment to run a business in a manner that benefits society and the environment.”
Citi’s new SRI offering is available to securities lenders through OpenLendSM, a boutique service to enhance portfolio performance by delivering an open architecture that provides access to Agency, Third-Party, Hybrid and Exclusives lending.