Citi tailors product to volatility outlook
Financial services group Citi has launched a new investment product with leveraged index exposure that is designed to help smooth volatility from the equity market over the next five years.
The MLI Quarterly Lock-In (Series 2007 — 2009), which offers 100 per cent capital protection if held to maturity, is linked to the performance of the S&P/ASX 200 index.
Performance is calculated by taking quarterly observations of the index over the five-year term and averaging them at maturity (with no negative observations used in calculating average performance).
Once the average index performance has been determined, it is then multiplied by a participation rate of between 180 and 200 per cent to generate the final leveraged return of the investor.
Citi’s head of equity structured products Irfan Khan said the averaging feature of the MLI Quarterly Lock-In (Series 2007 — 2009) helps smooth volatility when compared with a direct investment in the Australian equity market.
“Recent shifts in the Australian equity market suggest that future market movements may not be as smooth as we have seen in the last few years,” he said.
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
