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Products February 26, 2008
Citi, Legg Mason in Overlay Business Deal
February 26, 2008 (PLANSPONSOR.com) - Citi and Legg
Mason have agreed that Citi Global Wealth Management (GWM)
will acquire the overlay and implementation business of Legg
Mason Private Portfolio Group (LMPPG).
Reported by Fred Schneyer
A news release said the deal includes LMPPG’s managed account trading and technology platform.
LMPPG’s Roger Paradiso, President and Chief Investment Officer, and Michael Scotto, Chief Investment Strategist, and their team will join Citi in the transaction, according to the news release. Terms of the transaction were not disclosed.
The deal brings overlay capability in-house at Citi allowing portfolio construction utilizing SMAs, mutual funds, and ETFs in a single account structure.The announcement said Legg Mason will continue to serve as a sub adviser in Smith Barney ‘ s Fiduciary Services program and in the existing Multi-Discipline Account Products (MDAs) it manages, consistent with current arrangements.
As future programs are built, Legg Mason investment managers may participate in Smith Barney ‘ s fee-based programs in SMA or mutual fund formats.