The following disclosure relates to Citibank, N.A., Hong Kong / Singapore Branch's discretionary asset management business only and does not apply to any other branches of Citibank, N.A.. nor to any other businesses operating through the Hong Kong / Singapore Branch of Citibank, N.A..
Citibank, N.A., Hong Kong / Singapore Branch’s discretionary asset management business is subject to relevant regulatory requirements. This business provides discretionary portfolio management services and offers a range of core, opportunistic and thematic strategies across asset classes in- house and extensively vetted third-party strategies.
Citibank, N.A., Hong Kong / Singapore Branch’s discretionary asset management business integrates environmental risks (where data is relevant and/or available) in its investment management process by:
- considering a number of factors such as environmental, social and governance (‘ESG’) risk ratings, physical climate risks and transition risks at the research and portfolio construction stage; and
- conducting scenario analysis based on available third-party climate change models that consider factors such as Climate Value at Risk (‘CVaR’) scores in portfolio risk management.
Climate-related risk is one of a number of risks that this business may consider and such risk forms part of its overall risk management process. However, climate-related risk is not an overriding risk indicator when Citibank, N.A., Hong Kong / Singapore Branch’s discretionary asset management business researches, constructs and manages its portfolios. Citibank, N.A., Hong Kong / Singapore Branch’s discretionary asset management business does not apply any absolute risk thresholds to determine materiality or applicability of climate risks to an investment or managed portfolio.
