Legg Mason will divide the Citigroup Asset Management business it acquired in June into two investment management affiliates and two new distribution units, according to a memo sent to employees this week.
An active U.S. equity investment management firm will be formed out of Citigroup Asset's "core" New York- and San Francisco-based active equity teams, while a separate international equity affiliate will be created out of Citigroup Asset's non-U.S. equity business. Each affiliate will have its own dedicated institutional marketing and client services operations, according to the memo. Overall, Citigroup Asset has $437 billion under management.
The two distribution units will focus on retail and separately managed accounts, according to the memo. The retail unit will focus on marketing Citigroup Asset and Legg Mason's combined mutual fund, middle market and private bank high-net-worth business. Another unit will be dedicated to distributing strategies from Citigroup's Private Portfolio Group, its high-net-worth business, and its separately managed account units.
In addition, officials from both Legg Mason and its $229 billion fixed-income affiliate, Western Asset Management, "are working to establish the optimal approach for combining CAM's worldwide fixed-income business with WAM, to create the world's largest dedicated fixed-income investment management firm," according to the memo. Details were not disclosed.
Citigroup Asset spokeswoman Mary Athridge declined to comment on the integration plans; Legg Mason spokeswoman Paige Littleton could not be reached by press time.