Citi Launches CDs Linked to Rules-Based Investment Strategy
May 06 2015 - 8:59AM
Business Wire
Citibank N.A. is pleased to provide U.S. investors with access
to Market-Linked Certificates of Deposit linked to the Citi Market
Pilot 5 Excess Return Index (the “Index”).
The CDs, which have a term of seven years, do not pay interest,
but enable U.S. investors to participate in the potential
appreciation of the Index of at least 175% if held to maturity. If
the Index remains the same or depreciates, investors receive their
full deposit amount on the maturity date.
Citi Market Pilot 5 Excess Return Index employs a rules-based
methodology. It tracks the performance of a hypothetical investment
portfolio that may invest in global equities, U.S. Treasuries,
commodities, and money market Instruments.
“We are pleased to offer one of Citi’s rules-based investment
strategies in CD format,” said Barbara Mullaney, Global Head of
Citi Private Client Solutions. “We remain committed to delivering
innovative solutions to investors.”
Expected returns and risks of the selected portfolio in the
Index are based on historical performance and volatility, with
greater weight on recent returns. Each month, the Index identifies
a unique portfolio that, based on a 12-month look-back period, is
expected to achieve the highest return without exceeding a
pre-defined level of expected risk.
“The Index uses concepts drawn from Modern Portfolio Theory and
aims to capture price momentum in trending markets within a
volatility budget,” according to Emanuele di Stefano, Head of Citi
Investment Strategies Equities and Multi-Asset.
The CDs’ deposit date is May 29, 2015. The Index went live on
March 2, 2015.
Before investing in any financial instrument linked to the
Index, investors should carefully review the disclosure materials,
including risk disclosures, provided in connection with that
investment. There can be no assurance that historical measures used
by the Index will be accurate predictors of future returns and
volatility, or that the Index will be successful. For more detailed
information about the Index and its related risks, see the Index
disclosure document at
http://www.citibank.com/icg/docs/Citi_Market_Pilot_5_Excess_Return_Index_Rules.pdf
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at http://www.citigroup.com
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| LinkedIn: www.linkedin.com/company/citi.
Media:Citigroup Inc.Scott Helfman, +1 212-816-9241
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