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 last 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 unit will have its own dedicated institutional marketing and client services operations, according to the memo.
Citigroup Asset has $437 billion in assets under management.
The memo also said officials from 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." Details were not disclosed.