LONDON--(BUSINESS WIRE)--Citi is pleased to announce that the Citi Equity Balanced-Beta US Fund (the “Fund”) received a ***** (5-star) Morningstar RatingTM for its institutional “I” share class.
The Fund, which recognized its three-year anniversary on 21 March 2015, was rated against close to 1000 funds in Morningstar’s US Large-Cap Blend Equity category based on risk-adjusted returns as of 31 March 2015.
“The Fund offers a solution for investors who desire US large-cap equity exposure while seeking to reduce volatility and drawdown risk,” said Peter Arnold, Head of Citi’s International Funds Distribution Group.
The Fund aims to track the performance of the Citi Volatility Balanced Beta (VIBE) Equity US Net Total Return Index (the “Index”), a “smart beta” index, which since its launch on 10 June 2011 to date, has outperformed both its benchmark, the S&P 100 Net TR Index, and also the S&P 500 Net TR Index. The Index is exposed to the performance of the same stocks comprising the S&P 100 Index, but with the stock weights determined by a proprietary equal risk contribution approach (the VIBE methodology) which aims to provide a more balanced and diversified risk profile across index constituents.
“Compared to a market cap-weighted approach, Citi’s VIBE methodology typically allocates a lower weight to higher-volatility stocks, and a higher weight to lower-volatility stocks, which has historically offered enhanced risk-adjusted returns when compared with market capitalization benchmark indices,” according to Emanuele di Stefano, Head of Citi Investment Strategies Equities and Multi-Asset.
Since its launch on 21 March 2012 until 31 March 2015, the Fund’s annualized return was 16.8%, contributing to a Sharpe Ratio of 1.881. In addition to the “I” share class for institutional investors, Citi offers the Fund in “C” and “A” share class formats for private investors. Additionally, certain investors may access the Index in note and swap formats. Availability varies by country and client type.
To learn more about the Citi Equity Balanced-Beta US Fund, including its performance, holdings and related investment risks, visit www.funds.citi.com.
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1 The source is Citigroup Global Markets Limited and Bloomberg. Past performance is not indicative of future performance. The value of the Fund may go down as well as up. Investors may not get back their original investment. Fund performance data is net of fees and expenses. The Fund’s returns can be affected by fluctuations in currency exchange values.
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.
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MORNINGSTAR RATING DEFINITION
The Morningstar Rating is an assessment of a fund’s past performance – base on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.
MORNINGSTAR RATING DISCLAIMER (for the purposes of the Morningstar rating and its definition)
Copyright @ 2015. Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and /or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Fund is a sub-fund of CitiFirst Investments plc (the “Company”), an open-ended investment company incorporated in Ireland and authorised by the Central Bank of Ireland as a UCITS fund. The Fund is subject to investment risks, in particular the risk of loss of your capital invested. The Fund is not insured by any government agency, nor is it a deposit or other insured obligation.
This communication has been issued by Citigroup Global Markets Limited (registered number 1763297), which has its registered office at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, UK and is authorised in the UK by the Prudential Regulation Authority (“PRA”) and regulated in the UK by the Financial Conduct Authority (“FCA”) and the PRA. This communication is provided for information purposes only and does not constitute a recommendation, an offer or a solicitation to buy or to sell shares in the Fund. This communication may relate to matters that are (i) not regulated by the FCA, and/or (ii) not subject to the protections of the UK’s Financial Services and Markets Act 2000 and/or the UK’s Financial Services Compensation Scheme.
This communication is not intended for distribution to, or to be used by, any person or entity in any jurisdiction in which such distribution or use would be contrary to law or regulation. The distribution of the Fund in certain jurisdictions may be restricted and accordingly it is your responsibility to satisfy yourself as to compliance with all relevant laws and regulations in connection with any application to subscribe for shares in the Fund. The Fund may not be registered with any regulatory body or similar organization or institution in your jurisdiction.
This communication is provided on the understanding that (i) we are not acting as your agent, fiduciary or advisor, and (ii) you are not relying on us for advice or recommendations of any kind, meaning (iii) we are not managing your accounts and we do not have any power over your accounts, and (iv) you have sufficient knowledge and experience to be able to understand the Fund and will seek independent advice where you consider this is necessary in order to ensure that you have identified and understood fully all relevant risks and considerations. The information in this communication is not based on your individual circumstances and is not an assessment of suitability for you of the Fund. We do not provide financial, tax or legal advice. Where you are acting as an advisor or agent, you should evaluate this communication in light of the circumstances applicable to your principal and the scope of your authority. To the extent permitted by applicable law, no liability is accepted for any loss arising (whether direct or consequential) from any use of the information contained in this communication. Although all information has been obtained from, and is based upon, sources believed to be reliable, it may be incomplete or condensed and its accuracy cannot be guaranteed.
Any decision to purchase shares in the Fund should be based upon the information contained in the prospectus of the Company together with the supplement relating to the Fund (together, the “Offering Document”). This communication is qualified in its entirety by such Offering Document. Please refer to the “Risk Factors” sections of such Offering Document for a discussion of certain factors to be considered in connection with an investment in the Fund.
We have various roles in relation to the Fund which may give rise to potential conflicts of interest. We act as distributor and promoter of the Fund, and may also provide seed capital and may also act as investment advisor, derivatives counterparty and, in the case of a fund which has the objective of tracking an index, as sponsor and/or calculation agent of that index. We may have long or short positions or actively trade in financial instruments identical to or economically related to the Fund’s investment positions, either for our own account (including for the purpose of hedging derivative contracts with the Fund and market making) or on behalf of our customers. These activities may result in conflicts of interest for us and may, directly or indirectly, affect the value (either positively or negatively) of the Fund.
Any securities which are the subject of this communication have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or any United States securities law, and may not be offered or sold within the United States or to, or for the account or benefit of, any US person, except pursuant to an exemption from, or in a financial product or transaction not subject to, the registration requirements of the US Securities Act. The Company will not be registered under the United States Investment Company Act of 1940, as amended.
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