Citibank Taiwan has partnered with Allianz Global Investors Taiwan, Value Partners and China Asset Management (Hong Kong) in a move to expand its operation in Taiwan’s offshore banking unit (OBU) wealth management business following the de-regulation of the country’s OBU market.
As part of the expansion the US bank has launched three categories of investment products – a range of renminbi-denominated products, premier funds and a range of high-yield bonds and structured products.
In a press conference held today, Citibank Taiwan praised the government’s efforts in helping to strengthen the competitive advantages of the financial sector, responding positively to the state’s determination to develop the Taiwanese wealth management market.
“As the pioneer and market leader of wealth management in Taiwan, we have taken root in the Taiwanese wealth management market very actively,” said Yunny Lee, head of consumer banking at Citibank Taiwan. “We also pioneered wealth management in Taiwan by launching our Citigold Wealth Management service in 2001.”
Citi said that the deregulation of the OBU market would help to promote financial liberalisation and internationalisation, and would also lay the foundations for the nation’s OBU wealth management market.
Client feedback
Citibank Taiwan also said that it has recently invited OBU customers to conduct in-depth interviews in a bid to offer products and services satisfying customer needs. The result, said the bank, shows that with the relaxation of the OBU business, 69% of interviewees will consider wiring their overseas funds back to their bank accounts in Taiwan. Among them, about 45% of respondents plan to do so because it is more convenient for them to manage their funds. About 28% say that they can invest their money in the latest financial products.
Citi Taiwan’s poll also showed that demand for investment tools and services attracting OBU customers are focused on renminbi-denominated products (20%), offshore funds that have not yet been introduced into Taiwan (16%), high-yield bonds (13%), hedge funds (13%), offshore structured products such as structured notes (9%) and private equity funds (9%).
New range
Based on these results, Citibank Taiwan is offering OBU customers three categories of investment products and services, including a range of renminbi-denominated products, which features the first RQFII fund and the first offshore renminbi fund in Taiwan’s financial market, as well as renmimbi-denominated high-yield bonds and structured products.
The US bank is also offering a new range of high-yield bonds and structured products, including 20 new high-yield bonds and a new range of structured products that will be updated every month.In addition, Citibank Taiwan has also partnered with Allianz Global Investors Taiwan and Value Partners to offer their premier products in the Taiwan market exclusively, including several multi-asset funds, high-dividend equity funds, high-yield bond funds, Greater China equity funds and European equity funds, most of which are popular products in Hong Kong and Singapore. In total Citibank Taiwan is offering 26 premier funds alongside a selection of investment products denominated in multiple currencies and paying monthly dividends.
Citi’s CPC
In a bid to meet the needs of its rapidly growing customer base, Citibank Taiwan is also promoting its Citigold Private Client (CPC) service, which was launched in 2011 in Taiwan. The bank’s CPC integrates Citigroup’s global network with a personalised service to help Citibank Taiwan’s customers in managing their overall assets.
“We are continuously looking to innovate and make breakthroughs in an effort to provide our customers with a full range of wealth management products and services,” Lee added.
With the government’s deregulation of the financial sector, it is expected that structured products providers will develop new structured products to serve Taiwan’s wealth management business.