1、 INVESTMENT PRODUCTS: NOT FDIC INSURED NOT CDIC INSURED NOT GOVERNMENT INSURED NO BANK GUARANTEE MAY LOSE VALUE North America Investment Strategy: Muni Watch Year-to-date, Municipal bonds have returned 2.1%, with strong flows and improving state budget estimates (Figures 17-19). Leadership has come

2、from airports, transportation, and hospital bonds, A-rated or lower issues, and longer-duration 12+ year maturities (Figure 14). Muni yields and ratios versus Treasuries are historically low (Figures 2-5). This is where patience is advised. Even if yields rise and ratios mean revert, on a rolling 60

3、-month basis, Municipal bonds have an admirable record of positive performance (Figure 7). Short-term, cash coming to investors from bond maturities and redemptions should exceed new issuance and returns have been robust in the summer months (Figures 10). Municipal issues finance hospitals, educatio

4、n, clean water, low-income housing, public transit, renewable energy and more. ESG investors should also note that a study of $23 billion in new issuance found that green and non-green bonds priced to identical yields. Figure 1. Credit ratings and state pension funding highlights Source: Equable Ins

5、titute and S&P as of Dec 31, 2020 Figure 2: Muni yield ratios, by tenor Figure 3: Tax equivalent yields in select states (and NYC) Source: Bloomberg as of July 12, 2021. Note: Tax equivalent yields adjust for top Federal and Affordable Care Act tax rate (40.8%), as well as state income tax rates for

6、 each state yield. Past performance is no guarantee of future returns. Real results may vary. Charlie Reinhard Head North America Investment Strategy +1-212-559-6251 Bruce Harris Head Global Fixed Income Strategy +1-212- 723-1796 Joseph Kaplan Fixed Income +1-212- 559-3772 Steven Wieting Global C

7、hief Investment Strategist +1-212- 559-0499 Melvin Lou Global Strategy Austin Lee NAM Strategy North America Strategy July 2021 2 Performance and Opportunities Municipals have returned 2.0% year-to-date with strong flows and improving state budget estimates (Figures 17-19). Leadership has come fr

8、om longer-duration 12+ year maturities, A-rated or lower bonds, and airport, transportation, and hospital bonds. Still, we believe the rest of 2021 will be a more challenging return environment than 2020, when Municipal bonds returned 5.3%. Municipals have a nominal index yield just under 1% and his

9、torically low yield ratios versus Treasury issues (Figures 2-5). This is where a long-term perspective and patience can prove helpful. In the event Treasury yields drift higher and Muni yield ratios eventually mean revert, bonds will eventually mature and be replaced with new ones carrying higher yi

10、elds. On a rolling 60-month basis, Municipals have an admirable record of posting positive returns while generating income (Figure 7). Past performance is not a guarantee of future results. Short-term, Municipal bonds are more sensitive to swings in supply and demand than other areas of the bond mar

11、ket and this should provide some support. According to Bloomberg LLC on July 13, redemptions and maturities are estimated to total $24.5 billion in the next 30-days while municipalities plan to sell $10.2 billion in new bonds (Figure 6). In addition, summertime returns have historically been positiv

12、e (Figures 10). Following the $1.9 trillion COVID relief package that allocated $350 billion to states and localities earlier this year, the Biden administration is still negotiating with Congress to pass an infrastructure plan that provides further funding for the maintenance and improvement of the

13、 nations bridges, highways, roads, public transit, airports, broadband and much more. The Senate is currently drafting two bills. The first is a near $1 trillion bipartisan core infrastructure bill which Senate Majority Leader Chuck Schumer hopes to bring it to the floor the week of July 19 assuming

14、 the language can be completed, and the bill scored by the Congressional Budget Office (CBO) in time. This bill will require 10 Republicans to join 50 Democrats. How it is paid for remains to be determined and agreed upon. The second bill is being written by the Senate Budget Committee, totals $3.5

15、trillion, and covers human infrastructure. It will call for higher taxes, is unlikely to garner any Republican support and would need to pass via a majority vote reconciliation process. The betting site, PredictIt, currently assigns a 54% probability that the 21% corporate tax rate will be unchanged

16、 in 2022. The next most likely scenario, at a 32% probability, has the corporate tax rate rising to a rate between 24.6% and 27.9%. In terms of opportunities and risks, we currently see little value in holding cash or short-dated maturities. Better opportunities reside in credit, on the prospect of

17、a sustainable economic recovery. That said, spreads have tightened of late and reduced the potential gains from simply moving down a notch or two in credit quality to pick up yield (Figure 13). Were now moving deeper into an environment that provides opportunities for those with a disciplined resear

18、ch process to identify the more compelling issues and issuers, in our view. Figure 4: 10-Yr. AAA Muni yield ratios Figure 5: Muni yield ratios across tenors Source: Bloomberg as of July 12, 2021 Past performance is no guarantee of future returns. Real results may vary. Source: Bloomberg as of July 1

19、2, 2021 North America Strategy July 2021 3 Figure 6: Muni 30-day visible supply Figure 7: Rolling 60-month Muni Returns Source: Bloomberg as of July 12, 2021. Source: Bloomberg as of July 12, 2021. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative

20、 purposes only and do not represent the performance of any specific investment. Past performance is no guarantee of future results. Real results may vary. Outlook and Risks We expect the US economy to grow by 6.0% in 2021 and 3.5% in 2022 as the recovery transitions from a reflationary reopening pha

21、se to something more sustainable. Globally, the economy should grow by 5.0% and 4.5% in 2021-2022. We expect the Fed to move towards tapering its $120 billion a month in bond purchases in the months ahead and note the Feds FOMC forecast now indicates two policy rate hikes in 2023 (Figure 19). Elsewh

22、ere, the Peoples Bank of China (PBoC) is easing its reserve requirements and the European Central Bank (ECB) now appears more tolerant of inflation slightly over 2%, although it is not actually aiming to achieve above 2% inflation after being below it previously, in order to average that level over

23、time like the Fed. As the economy improves, 10-year Treasury yields could range between 1.5% and 2.0% later this year and even trend slowly higher during the rest of the expansion. In such a scenario, we would expect yield curves to steepen and Municipal bonds to outperform Treasury securities. The

24、pace of new COVID cases and vaccine dosing, cyber security events, foreign affairs, and policy initiatives by the administration all require monitoring, in our view. Should surprises develop that lead to higher-than-expected interest rates or a change in the economic outlook, some bond market volati

25、lity would likely occur. Is There a Greenium in the Municipal Bond Market? ESG investors should consider Municipal bonds. The funds from these issues finance hospitals, education, clean water, low-income housing, public transit, renewable energy and much more. In addition, green investing in the Mun

26、icipal bond market offers competitive yields. A 2019 study at the Stanford University Graduate School of Business examined $23 billion in issuance starting in 2013. When comparing green securities to nearly identical securities issued for non-green purposes by the same issuers on the same day, the a

27、uthors observed economically identical pricing. Cross-Asset Class Comparisons High quality Muni tax equivalent yields are now generally below those of corporate bonds with equivalent ratings, as investors combat low Treasury yields and the prospect of higher income tax rates (Figures 8-9). North Ame

28、rica Strategy July 2021 4 Figure 8: Muni tax-exempt yield curve vs taxable Figure 9: Some high quality Munis dont beat US IG corporates Source: Bloomberg as of July 12, 2021. Note: Tax equivalent yields adjust for top Federal and Affordable Care Act tax rate (40.8%). Past performance is no guarantee

29、 of future returns. Real results may vary. Source: Bloomberg as of July 12, 2021. Note: Tax equivalent yields adjust for top Federal and Affordable Care Act tax rate (40.8%). Past performance is no guarantee of future returns. Real results may vary Figure 10: Municipal bond seasonality Figure 11: Ai

30、rport, water and tolls revenue bond spreads Source: Factset as of July 12, 2021. Past performance is no guarantee of future results. Real results may vary. Source: Factset as of July 12, 2021. Past performance is no guarantee of future results. Real results may vary. Indices are unmanaged. An invest

31、or cannot invest directly in an index. They are shown for illustrative purposes only. Figure 12: NY and CA vs national Figure 13: Spreads by credit rating Source: Factset as of July 12, 2021. Past performance is no guarantee of future results. Real results may vary. Note: Tax Equivalent Yield = Yiel

32、d adjusted for state and local tax rates to ensure a more apples to apples comparison with taxable bonds Source: Factset as of July 12, 2021. Past performance is no guarantee of future results. Real results may vary. Munis for the Long Run Historically, Municipal bond defaults have been rare. In US

33、Municipal Bond Defaults and Recoveries, 1970-2017, the cumulative default rate for all rated Municipal bonds was just 0.09%. North America Strategy July 2021 5 In addition, Municipal bonds have low or moderate correlations to other asset classes, like equities, providing potential portfolio diversif

34、ication benefits (Figure 20). Finally, the asset class has an enviable record of producing positive total investment returns on a rolling 5-year basis (Figure 7). In our view, this is a positive attribute for longer-term investors. Appendix: Charts to Watch Figure 14: Municipal bonds: returns and ri

35、sk by sector, maturity, and credit rating Source: Factset as of July 14, 2021. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only. Past performance is no guarantee of future returns. Real results may vary. Figure 15: Select in-state (

36、city) tax equivalent yield curves Figure 16: Select out-of-state tax-equivalent yield curves Source: Bloomberg as of July 12, 2021. Note: Tax equivalent yields adjust for top Federal and Affordable Care Act tax rate (40.8%), as well as state income tax rates for each state yield. Past performance is

37、 no guarantee of future returns. Real results may vary. Source: Bloomberg as of July 12, 2021. Note: Tax equivalent yields adjust for top Federal and Affordable Care Act tax rate (40.8%). Past performance is no guarantee of future returns. Real results may vary. SectorYieldDurationComposite RatingYT

38、D Return 2020 ReturnReturn Since 2010BAML Muni Index94.0%4.84AA32.1%5.3%66.7%GO73.5%4.48AA21.3%5.3%57.2%Revenue101.4%4.97AA32.3%5.3%70.2%Airport104.1%4.79A13.2%4.5%78.3%Education99.1%5.68AA21.9%5.4%68.0%Hospital131.5%5.50A23.2%6.3%89.7%Leasing & Rental84.4%4.05AA31.8%4.6%63.5%Multi-Family171.6%6.65A

39、A32.7%4.3%63.9%Pollution Control93.7%4.97AA30.9%5.5%62.2%Power74.1%3.91AA31.2%4.8%52.6%Single-Family Housing209.5%6.48AA11.4%5.6%69.1%Transportation111.6%5.14A23.5%4.7%66.5%Water73.8%4.27AA21.0%5.5%65.7%1-3 Y20.9%1.67AA30.4%2.2%16.9%3-7 Y45.2%3.73AA20.7%4.1%39.6%7-12 Y79.7%5.06AA31.4%5.3%66.6%12-22

40、Y110.8%5.38AA32.5%6.0%81.6%22+146.7%6.22AA33.6%6.5%94.8%AAA77.3%4.93AAA0.9%5.5%50.6%AA83.5%4.70AA21.3%5.2%59.5%A108.1%4.90A22.9%5.4%78.5%BBB135.9%5.30BBB25.2%4.9%94.2%High Yield205.5%3.88BB35.9%5.1%122.5%North America Strategy July 2021 6 Figure 17: Muni fund flows vs 10yr US Treasury yield Figure 1

41、8: State tax collections Source: EPFR, FactSet as of July 12, 2021 Source: Haver as of July 12, 2021. Figure 19: Muni issuance Figure 20: Municipal bond correlations with other asset classes Source: Citi Municipal Bond Research as of July 12, 2021. Source: Factset as of July 12, 2021. Indices are un

42、managed. An investor cannot invest directly in an index. They are shown for illustrative purposes only. See asset class definition on page 8. Figure 21. Fed rate projection Figure 22: State credit ratings actions State From To Date Action Alaska AA AA- Apr-20 Downgrade Wyoming AA+ AA- Jun-21 Downgra

43、de New Jersey A- BBB+ Nov-21 Downgrade Connecticut A A+ May-21 Upgrade Illinois BBB- BBB Jul-21 Upgrade Source: Haver as of July 14, 2021. Source: S&P as of July 14, 2021. North America Strategy July 2021 7 Asset Allocation Definitions Asset classes Benchmarked against Global equities MSCI All Count

44、ry World Index, which represents 48 developed and emerging equity markets. Index components are weighted by market capitalization. Global bonds Barclays Capital Multiverse (Hedged) Index, which contains the government -related portion of the Multiverse Index, and accounts for approximately 14% of th

45、e larger index. Hedge funds HFRX Global Hedge Fund Index, which is designed to be representative of the overall composition of the hedge fund universe. It comprises all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity mar

46、ket neutral, event driven, macro, merger arbitrage and relative value arbitrage. The strategies are asset-weighted based on the distribution of assets in the hedge fund industry. Commodities Dow Jones-UBS Commodity Index, which is composed of futures contracts on physical commodities traded on US ex

47、changes, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). The major commodity sectors are represented including energy, petroleum, precious metals, industrial metals, grains, livestock, softs, agriculture and ex-energy. The Thomson Reuters / Core Commo

48、dity Index is designed to provide timely and accurate representation of a long-only, broadly diversified investment in commodities through a transparent and disciplined calculation methodology. Cash Three-month LIBOR, which is the interest rates that banks charge each other in the international inte

49、r-bank market for three-month loans (usually denominated in Eurodollars). Equities Developed market large cap MSCI World Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed to measure the equity market performance of the large cap stocks in 23 d

50、eveloped markets. Large cap is defined as stocks representing roughly 70% of each markets capitalization. US Standard & Poors 500 Index, which is a capitalization-weighted index that includes a representative sample of 500 leading companies in leading industries of the US economy. Although the S&P 5

51、00 focuses on the large cap segment of the market, with over 80% coverage of US equities, it is also an ideal proxy for the total market. Europe ex UK MSCI Europe ex UK Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed to measure large cap sto

52、ck performance in each of Europes developed markets, except for the UK. UK MSCI UK Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed to measure large cap stock performance in the UK. Japan MSCI Japan Large Cap Index, which is free-float adjust

53、ed and weighted by market capitalization. The index is designed to measure large cap stock performance in Japan. Asia Pacific ex Japan MSCI Asia Pacific ex Japan Large Cap Index, which is free-float adjusted and weighted by market capitalization. The index is designed to measure the performance of l

54、arge cap stocks in Australia, Hong Kong, New Zealand and Singapore. Developed market small and mid-cap (SMID) MSCI World Small Cap Index, which is a capitalization-weighted index that measures small cap stock performance in 23 developed equity markets. Emerging market MSCI Emerging Markets Index, wh

55、ich is free-float adjusted and weighted by market capitalization. The index is designed to measure equity market performance of 24 emerging markets. Bonds Developed sovereign Citi World Government Bond Index (WGBI), which consists of the major global investment grade government bond markets and is c

56、omposed of sovereign debt, denominated in the domestic currency. To join the WGBI, the market must satisfy size, credit and barriers-to-entry requirements. In order to ensure that the WGBI remains an investment grade benchmark, a minimum credit quality of BBB/Baa3 by either S&P or Moodys is imposed.

57、 The index is rebalanced monthly. Emerging sovereign Citi Emerging Market Sovereign Bond Index (ESBI), which includes Brady bonds and US dollar -denominated emerging market sovereign debt issued in the global, Yankee and Eurodollar markets, excluding loans. It is composed of debt in Africa, Asia, Eu

58、rope and Latin America. We classify an emerging market as a sovereign with a maximum foreign debt rating of BBB+/Baa1 by S&P or Moodys. Defaulted issues are excluded. Supranationals Citi World Broad Investment Grade Index (WBIG)Government Related, which is a subsector of the WBIG. The index includes

59、 fixed rate investment grade agency, supranational and regional government debt, denominated in the domestic currency. The index is rebalanced monthly. Corporate investment grade Citi World Broad Investment Grade Index (WBIG)Corporate, which is a subsector of the WBIG. The index includes fixed rate

60、global investment grade corporate debt within the finance, industrial and utility sectors, denominated in the domestic currency. The index is rebalanced monthly. Corporate high yield Bloomberg Barclays Global High Yield Corporate Index. Provides a broad-based measure of the global high yield fixed i

61、ncome markets. It is also a component of the Multiverse Index and the Global Aggregate Index. Securitized Citi World Broad Investment Grade Index (WBIG)Securitized, which is a subsector of the WBIG. The index includes global investment grade collateralized debt denominated in the domestic currency,

62、including mortgage -backed securities, covered bonds (Pfandbriefe) and asset-backed securities. The index is rebalanced monthly. Municipal Bloomberg Barclays Municipal Bond Index is a broad-based benchmark that measures the investment grade, US dollar-denominated, fixed tax-exempt bond market. The i

63、ndex includes state and local general obligation, revenue, insured, and pre-refunded bonds North America Strategy July 2021 8 Disclosures In any instance where distribution of this communication (“Communication”) is subject to the rules of the US Commodity Futures Trading Commission (“CFTC”), this c

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105、ect of this document or future editions of the Quadrant. 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

106、 an issuers credit rating, or creditworthiness, causes a bonds 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 interes

107、t 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

108、when the initial investment was made. (MLPs) - Energy Related MLPs May Exhibit High Volatility. While not historically very volatile, in certain market environments Energy Related MLPS may exhibit high volatility. Changes in Regulatory or Tax Treatment of Energy Related MLPs. If the IRS changes the

109、current tax treatment of the master limited partnerships included in the Basket of Energy Related MLPs thereby subjecting them to higher rates of taxation, or if other regulatory authorities enact regulations which negatively affect the ability of the master limited partnerships to generate income o

110、r distribute dividends to holders of common units, the return on the Notes, if any, could be dramatically reduced. Investment in a basket of Energy Related MLPs may expose the investor to concentration risk due to industry, geographical, political, and regulatory concentration. Mortgage-backed secur

111、ities (MBS), which include collateralized mortgage obligations (CMOs), also referred to as real estate mortgage investment conduits (REMICs), may not be suitable for all investors. There is the possibility of early return of principal due to mortgage prepayments, which can reduce expected yield and

112、result in reinvestment risk. Conversely, return of principal may be slower than initial prepayment speed assumptions, extending the average life of the security up to its listed maturity date (also referred to as extension risk). Additionally, the underlying collateral supporting non-Agency MBS may

113、default on principal and interest payments. In certain cases, this could cause the income stream of the security to decline and result in loss of principal. Further, an insufficient level of credit support may result in a downgrade of a mortgage bonds credit rating and lead to a higher probability o

114、f principal loss and increased price volatility. Investments in subordinated MBS involve greater credit risk of default than the senior classes of the same issue. Default risk may be pronounced in cases where the MBS security is secured by, or evidencing an interest in, a relatively small or less di

115、verse pool of underlying mortgage loans. MBS are also sensitive to interest rate changes which can negatively impact the market value of the security. During times of heightened volatility, MBS can experience greater levels of illiquidity and larger price movements. Price volatility may also occur f

116、rom other factors including, but not limited to, prepayments, future prepayment expectations, credit concerns, underlying collateral performance and technical changes in the market. North America Strategy July 2021 10 Alternative investments referenced in this report are speculative and entail signi

117、ficant risks that can include losses due to leveraging or other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in the fund, potential lack of diversification, absence of information regarding valuations and pricing, complex tax stru

118、ctures and delays in tax reporting, less regulation and higher fees than mutual funds and advisor risk. Asset allocation does not assure a profit or protect against a loss in declining financial markets. The indexes are unmanaged. An investor cannot invest directly in an index. They are shown for il

119、lustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. International investing entails greater risk, as well as grea

120、ter potential rewards compared to US investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and

121、 less established markets and economics. Investing in smaller companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. Factors affecting commodities generally, index components composed

122、of futures contracts on nickel or copper, which are industrial metals, may be subject to a number of additional factors specific to industrial metals that might cause price volatility. These include changes in the level of industrial activity using industrial metals (including the availability of su

123、bstitutes such as manmade or synthetic substitutes); disruptions in the supply chain, from mining to storage to smelting or refining; adjustments to inventory; variations in production costs, including storage, labor and energy costs; costs associated with regulatory compliance, including environmen

124、tal regulations; and changes in industrial, government and consumer demand, both in individual consuming nations and internationally. Index components concentrated in futures contracts on agricultural products, including grains, may be subject to a number of additional factors specific to agricultur

125、al products that might cause price volatility. These include weather conditions, including floods, drought and freezing conditions; changes in government policies; planting decisions; and changes in demand for agricultural products, both with end users and as inputs into various industries. The info

126、rmation contained herein is not intended to be an exhaustive discussion of the strategies or concepts mentioned herein or tax or legal advice. Readers interested in the strategies or concepts should consult their tax, legal, or other advisors, as appropriate. Diversification does not guarantee a pro

127、fit or protect against loss. Different asset classes present different risks. Citi Private Bank is a business of Citigroup Inc. (“Citigroup”), which provides its clients access to a broad array of products and services available through bank and non-bank affiliates of Citigroup. Not all products and

128、 services are provided by all affiliates or are available at all locations. In the U.S., investment products and services are provided by Citigroup Global Markets Inc. (“CGMI”), member FINRA and SIPC, and Citi Private Advisory, LLC (“Citi Advisory”), member FINRA and SIPC. CGMI accounts are carried

129、by Pershing LLC, member FINRA, NYSE, SIPC. Citi Advisory acts as distributor of certain alternative investment products to clients of Citi Private Bank. CGMI, Citi Advisory and Citibank, N.A. are affiliated companies under the common control of Citigroup. Outside the U.S., investment products and se

130、rvices are provided by other Citigroup affiliates. Investment Management services (including portfolio management) are available through CGMI, Citi Advisory, Citibank, N.A. and other affiliated advisory businesses. These Citigroup affiliates, including Citi Advisory, will be compensated for the resp

131、ective investment management, advisory, administrative, distribution and placement services they may provide. Citibank, N.A., Hong Kong / Singapore organised under the laws of U.S.A. with limited liability. This communication is distributed in Hong Kong by Citi Private Bank operating through Citiban

132、k N.A., Hong Kong Branch, which is registered in Hong Kong with the Securities and Futures Commission for Type 1 (dealing in securities), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities with CE No: (AAP937) or in Singapore by

133、 Citi Private Bank operating through Citibank, N.A., Singapore Branch which is regulated by the Monetary Authority of Singapore. Any questions in connection with the contents in this communication should be directed to registered or licensed representatives of the relevant aforementioned entity. The

134、 contents of this communication have not been reviewed by any regulatory authority in Hong Kong or any regulatory authority in Singapore. This communication contains confidential and proprietary information and is intended only for recipient in accordance with accredited investors requirements in Si

135、ngapore (as defined under the Securities and Futures Act (Chapter 289 of Singapore) (the “Act” ) and professional investors requirements in Hong Kong(as defined under the Hong Kong Securities and Futures Ordinance and its subsidiary legislation). For regulated asset management services, any mandate

136、will be entered into only with Citibank, N.A., Hong Kong Branch and/or Citibank, N.A. Singapore Branch, as applicable. Citibank, N.A., Hong Kong Branch or Citibank, N.A., Singapore Branch may sub-delegate all or part of its mandate to another Citigroup affiliate or other branch of Citibank, N.A. Any

137、 references to named portfolio managers are for your information only, and this communication shall not be construed to be an offer to enter into any portfolio management mandate with any other Citigroup affiliate or other branch of Citibank, N.A. and, at no time will any other Citigroup affiliate o

138、r other branch of Citibank, N.A. or any other Citigroup affiliate enter into a mandate relating to the above portfolio with you. To the extent this communication is provided to clients who are booked and/or managed in Hong Kong: No other statement(s) in this communication shall operate to remove, ex

139、clude or restrict any of your rights or obligations of Citibank under applicable laws and regulations. Citibank, N.A., Hong Kong Branch does not intend to rely on any provisions herein which are inconsistent with its obligations under the Code of Conduct for Persons Licensed by or Registered with th

140、e Securities and Futures Commission, or which mis-describes the actual services to be provided to you. Citibank, N.A. is incorporated in the United States of America and its principal regulators are the US Office of the Comptroller of Currency and Federal Reserve under US laws, which differ from Aus

141、tralian laws. Citibank, N.A. does not hold an Australian Financial Services Licence under the Corporations Act 2001 as it enjoys the benefit of an exemption under ASIC Class Order CO 03/1101 (remade as ASIC Corporations (Repeal and Transitional) Instrument 2016/396 and extended by ASIC Corporations

142、(Amendment) Instrument 2020/200). In the United Kingdom, Citibank N.A., London Branch (registered branch number BR001018), Citigroup Centre, Canada Square, Canary Wharf, London, E14 5LB, is authorised and regulated by the Office of the Comptroller of the Currency (USA) and authorised by the Prudenti

143、al Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. The contact number for Citibank N.A., L

144、ondon Branch is +44 (0)20 7508 8000. Citibank Europe plc is regulated by the Central Bank of Ireland. It is authorized by the Central Bank of Ireland and by the Prudential Regulation Authority. It is subject to supervision by the Central Bank of Ireland, and subject to limited regulation by the Fina

145、ncial Conduct Authority and the Prudential Regulation Authority. Details about the extent of our authorization and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request. Citibank Europe plc, UK Branch is registered as a

146、branch in the register of companies for England and Wales with registered branch number BR017844. Its registered address is Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB. VAT No.: GB 429 6256 29. Citibank Europe plc, Luxembourg Branch is a branch of Citibank Europe plc with trade and

147、 companies register number B 200204. It is authorised in Luxembourg and supervised by the Commission de Surveillance du Secteur Financier. It appears on the Commission de Surveillance du Secteur Financier register with company number B00000395. Its business office is at 31, Z.A. Bourmicht, 8070 Bert

148、range, Grand Duchy of Luxembourg. Citibank Europe plc is registered in Ireland with company registration number 132781. It is regulated by the Central Bank of Ireland under the reference number C26553 and supervised by the European Central Bank. Its registered office is at 1 North Wall Quay, Dublin

149、1, Ireland. North America Strategy July 2021 11 In Jersey, this document is communicated by Citibank N.A., Jersey Branch which has its registered address at PO Box 104, 38 Esplanade, St Helier, Jersey JE4 8QB. Citibank N.A., Jersey Branch is regulated by the Jersey Financial Services Commission. Cit

150、ibank N.A. Jersey Branch is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme offers protection for eligible deposits of up to 50,000. The maximum total amount of compensation is capped at 100,000,000 in any 5 year period. Full details of the Scheme and banking groups cover

151、ed are available on the States of Jersey website www.gov.je/dcs, or on request. In Canada, Citi Private Bank is a division of Citibank Canada, a Schedule II Canadian chartered bank. References herein to Citi Private Bank and its activities in Canada relate solely to Citibank Canada and do not refer

152、to any affiliates or subsidiaries of Citibank Canada operating in Canada. Certain investment products are made available through Citibank Canada Investment Funds Limited (CCIFL), a wholly owned subsidiary of Citibank Canada. Investment Products are subject to investment risk, including possible loss

153、 of principal amount invested. Investment Products are not insured by the CDIC, FDIC or depository insurance regime of any jurisdiction and are not guaranteed by Citigroup or any affiliate thereof. This document is for information purposes only and does not constitute an offer to sell or a solicitat

154、ion of an offer to buy any securities to any person in any jurisdiction. Any investment in any securities described in this document will be made solely on the basis of an offering memorandum. Accordingly, this document should not form the basis of, and should not be relied upon in connection with,

155、any subsequent investment in these securities. To the extent that any statements are made in this document in relation to the products referred to herein, they are qualified in their entirety by the terms of the offering memorandum and other related documents pertaining thereto. The information set

156、out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. Prospective investors should carefully review the offering memorandum and other related documents before making a decision to invest. CCIFL is not currently a member, a

157、nd does not intend to become a member of the Mutual Fund Dealers Association of Canada (“MFDA”); consequently, clients of CCIFL will not have available to them investor protection benefits that would otherwise derive from membership of CCIFL in the MFDA, including coverage under any investor protect

158、ion plan for clients of members of the MFDA. This document is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities to any person in any jurisdiction. The information set out herein may be subject to updating, completion, revision,

159、 verification and amendment and such information may change materially. Citigroup, its affiliates and any of the officers, directors, employees, representatives or agents shall not be held liable for any direct, indirect, incidental, special, or consequential damages, including loss of profits, aris

160、ing out of the use of information contained herein, including through errors whether caused by negligence or otherwise. Copyright 2020, Citigroup Inc. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world

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