Appointment follows firm’s business-unit exchange deal. As part of a planned a business-unit swap between Legg Mason and Citigroup, Legg Mason sell-side executive David Penn will join Citi’s Smith Barney brokerage unit on 1 November. He’ll oversee Smith Barney’s investment products and manage traditional-product development and sales for Citigroup’s Global “Wealth Management Investment Organization,” a new Citigroup initiative to coordinate the delivery of high-end private-client investment products across Smith Barney and Citigroup Private Bank platforms.

Until then, however, Penn remains director of Legg Mason’s Investor Services group, a position that puts him in charge of investment management services, wealth management, non-proprietary mutual funds, separately managed accounts, insurance, alternative investments and annuities.

Penn, who comes to Smith Barney after a 21-year career with Legg Mason, “will play a leadership role in due diligence and management of all products, as well as oversee their distribution and marketing support,” according to Charles Johnston, president and CEO of Smith Barney's Global Private Client Group.

Smith Barney says the appointment comes as a result of a recent agreement between its corporate parent and Legg Mason. Baltimore-based Legg Mason will hand over its brokerage business and about $1.5 billion in stock in exchange for most of Citigroup Asset Management and a distribution agreement, under which Citi will sell ex-CAM products as well as Legg Mason Wood Walker equity funds for three years after the deal goes through.

The brokerage merger adds Legg Mason’s 127-office, 1,350-strong intermediary force to Smith Barney’s 500-office, 12,200-broker distribution network. –FWR

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