Client Case Sharing
The below case sharing of a client shows how Citigold Relationship Managers and our team of experts strive to improve the potential return of a client’s investment portfolio regardless of market volatility.
Ms. Cheung (Working mum)
An avid stock investor, Ms. Cheung aims to grow a future education fund for her children and runs a portfolio with over 10 China and Hong Kong stocks. Last year, she gave birth to her second son, while her career also progressed. However, Ms. Cheung was not able to keep abreast of the stock market as often and so missed various investment opportunities.
Insights by Citigold Advisory Team
Review & Analyze Current Portfolio
A booming stock market can offer impressive returns, but at the same time Ms. Cheung has to face higher volatility in adverse market conditions.
Provide Personalized Solutions
Through Portfolio Analyzer, we recommended that Ms. Cheung take reference from Citigold’s Model Portfolio. By diversifying her stock-based portfolio risk with balanced elements, it minimized portfolio volatility in a bear market and reduced impact on her children’s education fund.
Portfolio Stress Test
We also performed a portfolio stress test for Ms. Cheung. By simulating extreme market conditions to compare her existing portfolio’s performance with our modified portfolio, this proved a diversified portfolio can enjoy both reduced potential risk and reasonable returns.
* Citigold Diversification Index is Citibank’s in-house developed tool, which determines the diversification level of customers’ existing portfolio and is meant for reference purposes only.
^ According to Citi analytics over the past 5 years, a risk-adjusted return of a highly diversified portfolio outperforms an undiversified one by 45%. Analytic data for reference only.
- The hypothetical examples in this material are for illustration purposes only and the sequence of illustrative graphs may not be in order. Also, the terminologies used may vary from the real circumstances.
- The investment product risk level must be less than or equal to the risk profile of the client taken from the Investment Risk Profile Questionnaire.
- The Projected Goal Achievement is the Projected Portfolio Value divided by the Required Fund. The Projected Portfolio Value is based on the 5 parameters input by the client and together with the projected return of the selected Citi Model Portfolio assigned to the goal defined in the goal creation stage or the performance of the asset class allocated to the goal. The Estimated Goal Status may vary due to change of 5 parameters input by clients, the projected return of the Citi Model Portfolio or the performance of the asset class allocated to the goal. The projected return of Citi Model Portfolio is calculated from the historical return of the past 5 years. It may go up or down. The performance of the asset class is an average return of the products under the same asset class. The projected return may vary due to market fluctuation and unexpected external factor. The historical performance of the asset class is for illustration purposes only and not an indication of future returns. It may go up and down.
Important Disclaimer:
This material is for information only and does not constitute any offer or solicitation to buy or sell. Investors should refer to the relevant offering documents for detailed information prior to subscription. Investments are not bank deposits and involve risks, including the possible loss of the principal amount invested. Investors investing in investments denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Investment prices may go down as well as up. Unless specified, these investments are not obligations of, guaranteed or insured by Citibank (Hong Kong) Limited, Citibank, N.A., Citigroup Inc. or any of its affiliates or subsidiaries, or by any local governmental or insurance agency. Investment Services are not eligible for U.S. persons and might only be applicable to limited jurisdiction. You should seek advice from your professional advisors as to your particular tax position, including but not limited to estate duty and withholding tax that might arise from investing in overseas products.
Total Wealth Advisor is not a program or offering, but is a tool to recommend diversification that is meant for reference purposes only. Total Wealth Advisor is: (i) not binding on part of the client; (ii) not monitored by Citibank with respect to client's individual investment holdings. It is important to note that while recommendations based on Total Wealth Advisor represent our best thinking in terms of asset allocation and diversification, they serve only as a guideline for investors based on certain risk profiles. Market movements, changing market views, time horizons and liquidity constraints (among others) may result in your portfolio's asset allocation deviating from the model allocation.
Portfolio diversification is an important element for an investor to consider when making investment decisions. Concentrated positions may entail greater risks than a diversified portfolio. Certain factors that affect the assessment of whether your overall investment portfolio is sufficiently diversified may not be evident from a review of only your account with Citibank. It therefore is important that you carefully review your entire investment portfolio to ensure that it meets your investment goals and is within your risk tolerance, including your objectives for asset and issuer diversification. To discuss your asset allocations and potential strategies to reduce the risk and/or volatility of a concentrated position, please contact your personal banker/relationship manager.
The English version of these Terms & Conditions shall prevail wherever there is a discrepancy between the English & Chinese versions.
Apply Now
