Citi Preps Hybrid Aussie Retail Offering

Citigroup is preparing to launch a best-of capital protected note in Australia that offers exposures to three different asset allocation strategies.

  • 19 Aug 2005
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Citigroup is preparing to launch a best-of capital protected note in Australia that offers exposures to three different asset allocation strategies. "This takes asset allocation out of the investment process," said Michael Walker, head of equity structured products in Sydney. The structure, which will be launched by the end of the month, also gives investors exposure to three different asset classes. "It's unique in Australia," added Walker, noting this is the first product for Australian retail investors with a best-of option on three different allocation strategies.

The three different asset classes consist of an equity basket made of indices including the Standard & Poor's 500, Dow Jones Euro STOXX 50 and the Nikkei 225; a bond/currency basket comprised of the Citigroup U.S. Government Bond Index and the Australian dollar; and a commodity basket which includes aluminum, copper, gas and oil via futures contracts.

The structure runs three different weightings of investment in each basket to make up the different allocation strategies. An aggressive allocation is 60% weighted in equity, 10% in bonds/currency and 30% in commodities, while a balanced strategy has equal weightings, and a third commodity strategy is 70% weighted in commodities with 15% weightings in the two other portfolios. At the end of three years the investor receives the return of the best performing allocation strategy, with a minimum total return of 4.5%. The participation rate is expected to be around 80-90%.

  • 19 Aug 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 31,385.40 114 7.52%
2 JPMorgan 29,232.19 105 7.00%
3 Goldman Sachs 27,645.83 55 6.62%
4 Barclays 26,090.00 67 6.25%
5 Deutsche Bank 23,883.15 74 5.72%

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Rank Lead Manager Amount $m No of issues Share %
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1 ING 767.18 3 9.30%
1 BNP Paribas 767.18 3 9.30%
3 UniCredit 735.89 2 8.92%
4 Santander 467.33 2 5.66%
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Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 Goldman Sachs 1,607.28 5 22.59%
2 Credit Suisse 1,301.65 4 18.30%
3 UBS 970.80 3 13.65%
4 BNP Paribas 522.35 4 7.34%
5 SG Corporate & Investment Banking 444.17 3 6.24%