Citibank has been appointed by Schroders in Korea to handle trusteeship, custody and compliance monitoring for the firm's Korean funds.

Schroders was awarded the final license to establish a local investment subsidiary in Korea in mid-July making it the first foreign asset management company to be awarded such authorization. The license allows it to launch and manage investment trusts marketed to local investors. Its wholly-owned subsidiary, Schroders Korea Limited, plans to launch its first locally managed funds this month.

Schroders' investment in  Korean equities amounted to $2.1 billion at the end of last year, including investment through the Korea Europe Fund, the Schroder Seoul Fund, and the Schroder Emerging Markets Fund. In 1999, Schroders was also appointed as manager of the $500 million Seoul Debt Restructuring Fund, one of Korea's four corporate restructuring funds.

Commenting on the appointment, Anthony Galliano, Asia Pacific head of custody for Citibank, said: "Korea is a strategically important market. It boasts the second largest mutual fund market in Asia with not only a significant domestic fund management base, but also an increased migration of foreign fund managers who are tapping into this substantial savings pool."