Citigroup Global Markets Holdings Inc. (formerly named Salomon Smith Barney Holdings Inc.)

(212) 816-6000

388 Greenwich Street

New York, NY10013

https://www.citigroupgcib.com/

Sales

$21 billion

Investment Banking - Category Directory

Business Description 
Citigroup Global Markets Holdings Inc. (formerly Salomon Smith Barney Holdings
Inc.) ("CGMHI"), operating through its subsidiaries, engages in full-service
investment banking and securities brokerage business. As used in this Form 10-K,
"Citigroup Global Markets" and the "Company" refer generally to CGMHI and its
consolidated subsidiaries, and where the context requires refer to specific
subsidiaries. Citigroup Global Markets provides a full range of financial
advisory, research and capital raising services to corporations, governments and
individuals. Citigroup Global Markets operates in three business segments: (i)
Investment Services, (ii) Private Client Services and (iii) Asset Management,
and through these business segments, the Company provides investment banking,
securities and commodities trading, capital raising, asset management, advisory,
research, brokerage and other financial services to its customers, and executes
proprietary trading strategies on its own behalf.

Citigroup Inc. ("Citigroup"), CGMHI's parent, is a diversified holding company
whose businesses provide a broad range of financial services to consumer and
corporate customers around the world. Citigroup's activities are conducted
through the Global Consumer, Global Corporate and Investment Bank, Private
Client Services, Global Investment Management, and Proprietary Investment
Activities business segments. The periodic reports of Citigroup provide
additional business and financial information concerning that company and its
consolidated subsidiaries.

The principal offices of CGMHI are located at 388 Greenwich Street, New York,
New York 10013, telephone number (212) 816-6000. CGMHI was incorporated in New
York in 1977 and is the successor to Salomon Smith Barney Holdings Inc., a
Delaware corporation, following a statutory merger effective on July 1, 1999,
for the purpose of changing its state of incorporation. On April 7, 2003, CGMHI
filed a Restated Certificate of Incorporation in the State of New York changing
its name from Salomon Smith Barney Holdings Inc. to Citigroup Global Markets
Holdings Inc.

INVESTMENT SERVICES

INVESTMENT BANKING AND TRADING

The Company's global investment banking services encompass a full range of
capital market activities, including the underwriting and distribution of debt
and equity securities for United States and foreign corporations and for state,
local and other governmental and government sponsored authorities. Citigroup
Global Markets frequently acts as an underwriter or private placement agent in
corporate and public securities offerings and provides alternative financing
options. It also provides financial advice to investment banking clients on a
wide variety of transactions including mergers and acquisitions, divestitures,
leveraged buyouts, financial restructurings and a variety of cross-border
transactions.

Citigroup Global Markets executes securities and commodity futures brokerage
transactions on all major United States securities and futures exchanges and
major international exchanges on behalf of customers and for its own account.
Citigroup

Global Markets' significant capital base and extensive distribution capabilities
also enable it to provide liquidity to investors across a broad range of markets
and financial instruments, and to execute capital-intensive transactions on
behalf of its customers and for its own account. It executes transactions in
large blocks of exchange-listed stocks, usually with institutional investors,
and often acts as principal to facilitate these transactions. It makes markets,
buying and selling as principal, in approximately 870 equity securities traded
on the NASDAQ system. Additionally, Citigroup Global Markets makes markets in
convertible and preferred stocks, warrants and other equity securities.

The Company also engages in principal transactions in fixed income securities,
and it is a major dealer in government securities in New York, London, Frankfurt
and Tokyo. Citigroup Global Markets makes inter-dealer markets and trades as
principal in corporate debt and equity securities, including those of United
States and foreign corporate issuers, United States and foreign government and
agency securities, mortgage-related securities, whole loans, municipal and other
tax-exempt securities, commercial paper and other money market instruments as
well as emerging market debt securities and foreign exchange. It also enters
into repurchase and reverse repurchase agreements to provide financing for
itself and its customers, and engages in securities lending and borrowing
transactions.

Citigroup Global Markets is a major participant in the over-the-counter ("OTC")
market for derivative instruments involving a wide range of products, including
interest rate, equity, currency, and commodity swaps, caps and floors, options,
warrants, and other derivative products. It also creates and sells various types
of structured securities. Citigroup Global Markets' ability to execute
transactions is enhanced by its established presence in international capital
markets, its use of information technology and quantitative risk management
tools, its research capabilities, and its knowledge and experience in various
derivative markets.

Citigroup Global Markets also trades for its own account in various markets
throughout the world, and uses many different strategies involving a broad
spectrum of financial instruments and derivative products. Historically, these
trading strategies have primarily involved the fixed income securities of the
G-7 countries, but they also involve the trading of fixed income securities
globally (including emerging markets) as well as currencies and equities.
Because these trading strategies are often designed with time horizons of one
year or more, profits or losses reported in interim periods can be volatile and
may not reflect the ultimate success or failure of these strategies. For a
discussion of certain of the risks involved in CGMHI's securities trading and
investment activities, and its strategies to manage these risks, see Item 7,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations."

TRUST SERVICES

Certain subsidiaries of Citigroup are chartered as trust companies and provide a
full range of fiduciary services with a particular emphasis on personal trust
services. Another Citigroup subsidiary offers a broad range of trustee services
for qualified retirement plans, with particular emphasis on the 401(k) plan
market. Each of these trust companies is subject to supervision by either
federal or state banking authorities, as appropriate, based upon the
jurisdiction in which such trust

company is chartered, and uses the distribution network of Citigroup Global
Markets to market its services. Citigroup Global Markets provides certain
advisory and support services to the trust companies and receives fees for such
services. Certain subsidiaries of CGMHI also operate a private trust services
business that is licensed as a bank and trust company in the Cayman Islands.

PHIBRO

Phibro conducts a global proprietary commodities trading and dealer business
through its offices in Westport (Connecticut), London and Singapore. Commodities
traded include crude oil, refined oil products, natural gas, metals and various
soft commodities. Phibro makes extensive use of futures markets and is a
participant in the OTC physical and derivatives markets. Its principal
competitors are major integrated oil companies, other commodity trading
companies, certain investment banks, utility companies and other financial
institutions.

Phibro's strategy is to focus on taking positions in commodities on a
longer-term horizon while also trading with counterparties on a short-term
basis. Phibro's operating results are subject to a high degree of volatility,
particularly on a quarterly basis, due to the predominance of directional
positions in commodities that have a longer-term horizon until realization.
Thus, results are better evaluated over the longer term.

PRIVATE CLIENT SERVICES

Private Client Services provides investment advice, financial planning and
brokerage services to affluent individuals, small and mid-size companies,
non-profits and large corporations primarily through a network of more than
12,200 Smith Barney Financial Consultants in more than 500 offices worldwide. In
addition, Private Client Services provides independent client-focused research
to individuals and institutions around the world.

A significant portion of Private Client Services revenue is generated from fees
earned by managing client assets as well as commissions earned as a broker for
its clients in the purchase and sale of securities. Additionally, Private Client
Services generates net interest revenue by financing customers' securities
transactions and other borrowing needs through securities-based lending. Private
Client Services also receives commissions and other sales and service revenues
through the sale of proprietary and third-party mutual funds. As part of Private
Client Services, Global Equity Research produces equity research to serve both
institutional and individual investor clients. The majority of expenses for
Global Equity Research are allocated to the Global Equities business and Private
Client Services businesses.

ASSET MANAGEMENT

The portion of Citigroup's Asset Management segment housed within CGMHI is
comprised primarily of two asset management business platforms: Salomon Brothers
Asset Management and Smith Barney Asset Management (the "Asset Management
Group"). These platforms offer a broad range of asset management products and
services from global investment centers, including mutual funds, closed-end
funds and managed accounts. In addition, the Asset Management Group offers a
broad range of unit investment trusts.

Clients include private and public retirement plans, endowments, foundations,
banks, insurance companies, other corporations, government agencies, high net
worth and other individuals. Client relationships may be introduced through
Smith Barney's network of Financial Consultants and other cross-marketing and
distribution opportunities within the Citigroup structure, through the Asset
Management Group's own sales force or through independent sources.

The Company receives ongoing fees, generally stated as a percentage of the
client's assets, from asset management clients. At December 31, 2003 client
assets under management were approximately $303.6 billion, as compared to
approximately $256.6 billion at December 31, 2002 and approximately $273.1
billion at December 31, 2001. These amounts include separately managed accounts
with assets of approximately $114.4 billion at December 31, 2003, approximately
$85.6 billion at December 31, 2002 and approximately $93.6 billion at December
31, 2001.

At December 31, 2003, the Asset Management Group managed 208 mutual funds
(open-end investment companies), including taxable and tax-exempt money market
funds, equity funds, and taxable and tax-exempt fixed income funds sold
primarily through Smith Barney Financial Consultants, the sales force of
Primerica Financial Services, an affiliate of CGMHI, and other affiliates of
CGMHI. In addition, certain of the funds are sold through a variety of other
national and regional brokerage firms pursuant to dealer agreements. Of the
mutual funds managed by the Asset Management Group, 57 are domiciled outside the
United States and are offered to non-resident aliens through Citigroup Global
Markets and other
financial intermediaries. In addition, at December 31, 2003, the Asset
Management Group managed 36 mutual fund portfolios serving as funding vehicles
for variable annuity contracts, including certain variable annuities and other
individual products of the Travelers Life and Annuity unit of Citigroup, which
are sold by Smith Barney Financial Consultants. The Asset Management Group also
serves as the primary investment manager to 22 closed-end investment companies,
the shares of which are listed for trading on one or more securities exchanges.
At December 31, 2003, the Asset Management Group managed approximately $8.3
billion of closed-end investment company assets.

The Asset Management Group provides separate account discretionary and
non-discretionary investment management services to a wide variety of individual
and institutional clients, including private and public retirement plans,
endowments, foundations, banks, insurance companies, other corporations and
government agencies. Client relationships may be introduced through
cross-marketing and distribution opportunities within the Citigroup structure,
including Smith Barney's network of Financial Consultants, through the Asset
Management Group's own sales force, or through independent sources such as
consultant evaluations as well as through individual and institutional client
relationships.

The Asset Management Group also sponsors and oversees the portfolios of a large
number of unit investment trusts, which are unmanaged investment companies, the
portfolios of which are generally static. Such unit investment trusts may hold
domestic and foreign equity and debt securities, including municipal bonds.
Certain trusts are sponsored and overseen solely by the Asset Management Group;
other trusts are jointly sponsored through a syndicate of major broker-dealers
of which Citigroup Global Markets is a member. At December 31, 2003, outstanding
unit trust assets held by Citigroup Global Markets' clients were approximately
$5.6 billion, as compared to approximately $5.3 billion at December 31, 2002 and
approximately $6.9 billion at December 31, 2001.
 

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