NEW YORK — Despite published reports to the contrary, Citigroup won't be selling its $501 billion money management unit.
Bob Willumstad, interim head of Citigroup Asset Management, New York, said in an internal memo: "We're committed to the asset management business, which we believe is an important part of our long-term strategy for Citigroup. Any rumors to the contrary are untrue."
Sources familiar with the situation said executives at Citigroup Inc., like most other large financial services institutions, are looking for ways to boost the asset management unit's revenue.
Citigroup Asset Management accounts for about 3% of the parent's revenue. It oversees institutional, retail and mutual fund offerings under the Citigroup, Salomon Brothers and Smith Barney names.
Sources say executives at Citigroup aren't trying to get out of the money management business, but want to improve the investment units under the Citigroup umbrella to better leverage talent and investment capabilities.
Mr. Willumstad was unavailable for comment. Ed Giltenan, Citigroup Asset Management spokesman, declined to comment on sale and/or spinoff rumors.