Manager Search & Selection Research
Citi's Manager Search and Selection Research
Citi's Investment Advisor Research team has developed for the clients of Citi Private Bank a disciplined process for evaluating investment managers. Our analysis provides a wealth of detailed information, covering far more than just raw performance data. Most investors tend to overemphasize short-term past performance, which is like trying to drive a car by using only the rear-view mirror. We think effective evaluation requires a clear understanding of the qualitative factors that can influence future success or failure.
Accordingly, our analysts examine a range of issues they believe to be indicative of potential investment manager qualitysuch as investment philosophy, buy and sell disciplines, research capabilities, business operations and the qualifications of key personnel. The goal of this process is to avoid the common tendency to churn out performance-based statistics or ratings that have little or no practical value to investors. Our focus is threefold:
- We seek to offer clients a diverse selection of independent, third-party investment managers who meet or exceed our quality standards;
- We seek to provide practical, actionable advice that will help clients select the right investment products and effectively monitor ongoing product performance; and
- Where appropriate, we seek to help clients take advantage of shorter-term market trends that we believe may favor specific investment products.
Our disciplined process is applied across a full range of asset classes, including:
- Separately managed traditional strategies
- Alternative strategies, supported by operational due diligence
Our Traditional Strategies Research includes the following asset classes:
- Quantitative strategies
Our alternative strategies research includes:
- Single-strategy hedge funds
- Private equity
- Private real estate
Research and investment-management services are available through Citibank, N.A. and Citi Investment Research (a division of CGMI). For US clients, trust services are provided by one of the following entities: Citibank, N.A.; Citi Trust, N.A.; Citi Trust South Dakota; or Citi Trust - Delaware, N.A. The service providers are collectively referred to as “Citi Trust” and the entities as the “affiliated trust companies.” Citigroup companies may compensate affiliates and their representatives for providing products and services to clients.
Bonds are affected by a number of risks, including fluctuations in interest rates, credit risk and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall. Bonds face credit risk if a decline in an issuer's credit rating, or creditworthiness, causes a bond's price to decline. High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. Finally, bonds can be subject to prepayment risk. When interest rates fall, an issuer may choose to borrow money at a lower interest rate, while paying off its previously issued bonds. As a consequence, underlying bonds will lose the interest payments from the investment and will be forced to reinvest in a market where prevailing interest rates are lower than when the initial investment was made.
There is no guarantee that these strategies will succeed. This information is intended to illustrate products and services available through Citi Private Bank. The strategies do not necessarily represent the experience of other clients, nor do they indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. Individual clients should review with their financial advisors the terms and conditions and risks involved with specific products or services. Past performance is no guarantee of future results.
Diversification does not ensure against loss.
Citigroup Inc. and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
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