Bank­ing across the wealth Con­tin­uum

Citi of­fers in­vest­ment op­por­tu­ni­ties and wealth coun­selling ser­vices tai­lored to dif­fer­ent client seg­ments across the wealth con­tin­uum

Hong Kong Tatler - - Tatler Focus -

Citi’s ex­ten­sive pres­ence through­out Asia and the world al­lows it to pro­vide a unique plat­form to wealthy clients in Hong Kong, whether they are just start­ing on their jour­ney or have grow­ing and com­plex needs.

Draw­ing on more than a cen­tury of con­tin­u­ous op­er­a­tion in Asia, Citi of­fers spe­cial­ist ser­vices for clients across the full wealth con­tin­uum: Cit­igold, for mass af­flu­ent cus­tomers with US$200,000 to US$1 mil­lion to in­vest; Cit­igold Pri­vate Client, for in­di­vid­u­als with be­tween US$1 mil­lion and US$10 mil­lion to be man­aged; and Citi Pri­vate Bank, serv­ing clients with in­vestable as­sets of more than US$10 mil­lion.

Cit­igold’s reach Citi has more than 30 branches in Hong Kong, as well as on­line bank­ing and global bank­ing ser­vices via its ex­ten­sive global net­work, which pro­vides the scale to de­liver com­pre­hen­sive re­tail and pri­vate bank­ing ser­vices in a cost-ef­fi­cient way.

For Cit­igold Pri­vate Client, the bank of­fers clients the best of both worlds—the con­ve­nience of its global bank­ing net­work along­side a com­pre­hen­sive pri­vate bank­ing ser­vice plat­form. Clients have ac­cess to ad­vi­sory ser­vices pro­vided by port­fo­lio coun­sel­lors and se­nior in­vest­ment spe­cial­ists who give con­struc­tive ad­vice and pro­vide cus­tomised ad­vi­sory ser­vices to ful­fil clients’ ob­jec­tives and risk tol­er­ances.

“In to­day’s volatile mar­kets, in­vestors are more aware of the ben­e­fits of di­ver­si­fi­ca­tion and the re­la­tion­ship be­tween risk and re­turn,” says Lawrence Lam, head of Re­tail Bank­ing, Citibank Global Con­sumer Bank­ing. “Clients are look­ing for a wide range of wealth man­age­ment prod­ucts and of­fer­ings to build a cus­tomised port­fo­lio in tune with their ex­pe­ri­ence and risk pro­file.”

With ac­cess to ex­perts in in­vest­ment, trea­sury, financial plan­ning and port­fo­lio man­age­ment, clients can en­joy peace of mind and ben­e­fit from cus­tomised ad­vi­sory ser­vices that help them to stay abreast of the mar­ket.

Cit­igold Pri­vate Client

This year, Cit­igold Pri­vate Client has in­tro­duced two new coun­selling ser­vices: Port­fo­lio 360° and Eq­uity Rec­om­men­da­tion Ser­vice.

Port­fo­lio 360° is a new wealth-coun­selling tool con­ducted by Citi’s port­fo­lio coun­sel­lors, who are former fund man­agers with more than 10 years of ex­pe­ri­ence in as­set man­age­ment and in­vest­ment bank­ing. The anal­y­sis ex­am­ines clients’ to­tal in­vest­ment port­fo­lio in a struc­tured way and pro­vides con­struc­tive ad­vice tai­lored around clients. Port­fo­lio coun­sel­lors will iden­tify po­ten­tial risks and weak­nesses and re­veal how to re­bal­ance the port­fo­lio to pre­vent over­con­cen­tra­tion in any sec­tor or as­set class.

“So far, we have found that busi­ness own­ers and pro­fes­sion­als are more in­ter­ested in this ser­vice. Many clients, for ex­am­ple, and even se­nior ex­ec­u­tives, are ac­tu­ally un­der-di­ver­si­fied be­cause they mostly hold com­pany stock. We ad­vise them on how their in­vest­ment prod­ucts are highly cor­re­lated to each other and demon­strate how to prop­erly di­ver­sify,” says Lam. “An­other mis­con­cep­tion of clients is that they say they buy enough fixed in­come prod­ucts, stocks or funds. But if their hold­ings are in sim­i­lar in­dus­tries then no mat­ter how many prod­ucts they have ac­quired, they are not truly di­ver­si­fied.”

Citi has ex­panded its Eq­uity Rec­om­men­da­tion Ser­vice to Cit­igold Pri­vate Client this year. Sup­ported by the top re­search house in Asia, Citi’s se­nior in­vest­ment spe­cial­ists pro­vide per­son­alised rec­om­men­da­tions on high-po­ten­tial sec­tors and give trad­ing ad­vice on thou­sands of spe­cific stocks in the Hong Kong, Shang­hai and US stock mar­kets.

“The beauty of this ser­vice is we are re­view­ing clients’ over­all port­fo­lio, in­clud­ing eq­uity, as a whole,” says Lam.

Citi Pri­vate Bank

As clients grow in affluence along their wealth life cy­cle, they can take ad­van­tage of the more be­spoke ad­vi­sory ser­vices of­fered by Citi Pri­vate Bank. In ad­di­tion to their core port­fo­lio of vanilla in­vest­ments, Pri­vate Bank clients have ac­cess to dis­tinc­tive op­por­tu­ni­ties that can be over­laid on top of their port­fo­lio.

“Clients come to us for in­vest­ment ideas, insight, in­no­va­tion and for our net­work,” says Steven Lo, global mar­ket man­ager, Citi Pri­vate Bank in Hong Kong.

“We put all this to­gether to help clients po­si­tion for the next cy­cle.” As a truly global bank, Citi can iden­tify di­ver­si­fi­ca­tion op­por­tu­ni­ties around the world. Whether clients are look­ing for fresh per­spec­tives on a pub­licly listed com­pany in China, com­mer­cial real es­tate in Chile or hedge funds out of Chicago, Citi’s pri­vate bankers can pro­vide real-time, ac­tion­able knowl­edge and in­sights.

Many of Hong Kong’s wealthy clients, for ex­am­ple, have sig­nif­i­cant ex­po­sure to lo­cal real es­tate and may con­sider that val­u­a­tions are be­com­ing fairly de­cent in the city. What they re­quire are op­tions for di­ver­si­fi­ca­tion.

Whether a client is in­ter­ested in de­vel­op­ment projects or rental col­lec­tion, Citi can iden­tify and man­age op­por­tu­ni­ties across the spec­trum—ho­tels, of­fices, shops, strip malls— and of­fer the abil­ity to co-in­vest in a pri­vate eq­uity-type ar­range­ment.

“At the mo­ment our clients are in­ter­ested in real es­tate in the US, Lon­don and Tokyo,” says Lo. “Aus­tralia is an up-and-com­ing mar­ket be­cause some Hong Kong in­vestors are hold­ing quite a bit of Aussie dol­lars. We don’t see a ma­jor re­bound in the cur­rency so we’re help­ing th­ese clients to find op­por­tu­ni­ties.”

With an open-ar­chi­tec­ture plat­form—an ap­proach that was pi­o­neered by Citi—citi Pri­vate Bank sup­ports all types of client in­ter­ac­tions, in­clud­ing trans­ac­tional busi­ness, ad­vi­sory ser­vices, cus­tomised strate­gies and dis­cre­tionary as­set man­age­ment.

Hedge funds are an­other pop­u­lar op­tion that can al­low clients to po­si­tion for macro cy­cles, such as the ageing of the global pop­u­la­tion, which brings with it in­creased de­mand for med­i­cal ser­vices and medicines. How can clients take ad­van­tage of such trends?

In this case, Citi’s re­search team has iden­ti­fied man­agers with spe­cial­ist ex­per­tise in med­i­cal re­search, who are us­ing long/short strate­gies to cap­i­talise on the next break­through.

Citi’s pri­vate bankers open the door to the best ideas and op­por­tu­ni­ties that are avail­able, around the world, by re­ly­ing on a top-tier net­work. “There are a lot of ex­perts sup­port­ing a banker,” says Lo. “A great banker is some­one who knows how to or­ches­trate, is good at re­la­tion­ships and knows when to bring in the right peo­ple to talk to the client. At the end of the day, he or she is to serve as a trusted part­ner to our clients by pro­vid­ing financial ser­vices that en­able growth and progress for them, in a re­spon­si­ble way. That is our mis­sion.”

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