private indulgence knowledge is everything · private indulgence asia’s intimate new dining trend...

PRIVATE INDULGENCEAsia’s intimate new dining trend

KNOWLEDGE IS EVERYTHINGHow Portfolio Counselors can help

keep your fi nances in perfect shape

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CONTENTS02Member Rewards 2011More exclusive rewards from

our partners

05 Citi BuzzSee what’s new in Citibank

06 IndulgePrivate dining concept restaurants

07 Citigold Private ClientPortfolio Counselors prove invaluable

08 Luxury EscapesThe chic resort that pampers its

guests and cares for the planet

11 Singapore PassionsCollecting contemporary Asian art

12 Market WatchAnnual outlook 2011

14 Savvy InvestingMapping out your road to riches

MICA (P) 088/11/2010

This Newsletter is published by Emphasis Media (S) Pte Ltd, exclusively for Citibank Singapore Ltd. All rights are expressly reserved by Citibank Singapore Ltd. There shall be no reproduction of any material in the Newsletter unless with the express permission of Citibank Singapore Ltd.

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INTOUCH | 1

2010 HAS BEEN AN EXTREMELY positive and exciting year for Citibank. I would like to thank you for your unwavering trust in us. Let me take this opportunity to share some of the key developments of Citi.

In October, Citi announced its third straight quarter of positive earnings of US$2.2 billion net income on US$21 billion revenues. The Asia Pacifi c region was once again the top contributor to global net income for the quarter with net income of US$1 billion on revenues of US$3.6 billion.

In December, the United States Department of the Treasury completed the sale of its remaining 2.4 billion shares of our common

WELCOME

stock. This sale marks the end of the assistance given to Citi by the government through Troubled Asset Relief Program (TARP).

These are clear demonstrations of Citi’s progress towards sustained profi tability as it continues to be one of the strongest banks in the world.

Being named the ‘Best Foreign Bank in Singapore’ at the 2010 Alpha SEA Annual Best Financial Institution Awards was another signifi cant achievement for Citibank. This is a strong endorsement of our customer value proposition and quality of our products and services. We have also further extended our footprint with the opening of our Citigold Branch at Marina Bay Sands.

WelcomeLooking forward to 2011,

serving your fi nancial and wealth management needs and providing you the best possible service remains our top priority. We have a series of initiatives and services planned such as an enhanced online trading platform as well as improved e-capabilities.

As we welcome 2011, I want to wish you and your family good health and the very best in the year ahead. Thank you again for your continued support towards Citibank.

Shyam Sambamurthy

Business Manager

IPB Singapore

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2 | INTOUCH

MEMBER REWARDS PROGRAM

Welcome to a new year fi lled with fabulous Rewards for you and your family.

Reward Points now bring you more amazing experiences than ever before, from

luxurious getaways to your favourite destinations to the region’s most enticing

shopping and dining locations – we have it all lined up ready for your redemption.

A truly rewarding 2011

Banyan Tree Samui in Koh Samui, Thailand

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INTOUCH | 3

PLANNING A GETAWAY? Enjoy a luxurious customized holiday package to the destination of your choice.

Endless fun in Milan (2 to travel)

32,000 points (per pax) Package includes the following:• Two-way private airport transfer in luxury sedan (Mercedes E-Class or equivalent)• Four nights’ luxury boutique hotel accommodation• Choice of one-day rental of an Audi A5 Cabriolet, Audi TT Roadster, BMW 1 or 3 Series Cabriolet, BMW Z4 Roadster, Mercedes E-Class Cabriolet or Mini Cooper S Cabriolet• One-day guided city walking tour with Last Supper tickets• One-day roundtrip factory outlet shuttle bus• Destination guide for self-conducted sightseeing• Dining suggestions and dinner reservation service(Package excludes international airfare)

Customized holidays

Create your very own customized holiday to a destination of your choice. Whether it’s a luxurious getaway in Mauritius or a driving holiday through the French countryside, Quotient TravelPlanner can assist you with your holiday plans. Every 500 Rewards Points allows you to redeem a US$50 voucher which can be used to customize a holiday or to purchase an existing package. You can also choose to customise any existing holiday by adding nights or experiences. Speak to your Relationship Manager for more information.

INDULGE IN A RELAXING SPA or stay at our special selection of luxury properties in the region:

China – Banyan Tree Hangzhou; The Great Wall Sheraton Hotel Beijing; Sheraton Shanghai Hotel & Residences Pudong; The St Regis Shanghai

Hong Kong – Le Meridien Cyberport; Sheraton Hong Kong Hotel & Towers

India – Le Meridien Chennai; The Westin Sohna; The Westin Gurgaon

Indonesia – Banyan Tree Bintan; Le Meridien Jakarta; The St Regis Bali Resort; Sheraton Bandara Hotel

Japan – The Westin Tokyo

Singapore – The St Regis Singapore; Mandarin Orchard Singapore; Conrad Singapore

Taiwan – Sheraton Taipei; The Westin Taipei

Thailand – Banyan Tree Bangkok; Banyan Tree Samui; Shangri-la Hotel Bangkok; Shangri-la Hotel Chiang Mai

UAE – Banyan Tree Al Wadi

The Louvre in Paris, France.

Below: Galleria Vittorio Emanuele II

in Milan, Italy


4 | INTOUCH

How to Redeem Your Rewards Online

1Visit www.ipb.citibank.com.sg

and click on ‘Sign on to Citibank Online’.

2 Sign on with

your Citibank ATM Card Number and ATM Pin.*

3 Click on Member Rewards

on the left menu. Enter the One-Time PIN obtained from your Online Security Device when prompted.*

4 Check your Points balance and

start redeeming your rewards.

Member Rewards Online RedemptionVisit Citibank Online for fast and hassle-free redemptions on the Internet.You can now track your Points balance, select and redeem your rewards for exclusive shopping and lifestyle experiences from around the region, or enjoy travel and air miles rewards from our partners. For a complete list of all the rewards available, please browse our new Member Rewards website at www.ipb.citibank.com.sg

* If you do not have a Citibank ATM Card, ATM PIN or Online Security Device, please contact your Relationship Manager to request for one.

Simply choose your reward and redeem it online for fewer points at www.ipb.citibank.com.sg

or call our 24-Hour CitiPhone Banking at +65 6224 5757

SHOP TO YOUR HEART’S CONTENT at our wide selection of leading shopping malls in the region.

Select your choice of shopping vouchers from:

Indonesia – MAPS; Plaza Indonesia

Malaysia – Robinsons

Philippines – Rustan’s

Singapore – Clarke Quay; ION Orchard; Paragon; Plaza Singapura; Raffl es City; Tangs

Taiwan – Shin Kong Mitsukoshi; The Mall

Thailand – Siam Paragon

Redeeming your Reward Points

MEMBER REWARDS PROGRAM

Paragon


INTOUCH | 5

Citigold Global Banking provides unrivaled worldwide

access and control of your personal fi nances

Global View of Accounts^

Simply use one login to access multiple Citibank accounts you have across borders from wherever you are via Citigold Online. Enjoy a single online view of your accounts, check balances and handle your online transactions of your accounts in countries such as Indonesia, Australia, Taiwan, Malaysia, Philippines, China and others.

Same Day Foreign Exchange Valuation and Preferential RatesBenefi t from same day foreign exchange valuation* for incoming and outgoing remittances. Receive preferential foreign exchange rates on transactions above US$25,000.

Citibank World PrivilegesEnjoy a host of benefi ts and discounts at over 40,000 different establishments in 30 countries (including golf courses, tourist attractions and shops), all at your fi ngertips with our global listing at www.citiworldprivileges.com.

WITH CITIBANK’S INTERNATIONAL NETWORK of branches, more than 1.4 million ATMs and Citigold Online, you can enjoy direct control of your fi nances no matter which country you’re visiting. In line with Citibank’s global presence, we have designed Global Banking

Privileges to suit today’s globetrotting lifestyles. These include:

Free Global Funds Transfer+

Enjoy instant and complimentary funds transfers of up to US$20,000 between Citibank accounts globally. This online service allows you to send up to US$20,000 instantly from your account with us to other Citibank accounts in participating countries worldwide.

Pre-Arrival Account OpeningEnjoy the convenience of pre-arrival account opening when you need to travel overseas for business or study.

Emergency Cash WithdrawalGain instant access of up to US$10,000 cash when faced with an emergency situation overseas through our 550 Citigold Centres worldwide.

Truly world-class

NOW THAT YOU’RE ENJOYING the benefi ts and privileges of being a valued Citibank client, why not share the experience with your loved ones and friends? From now until December 31 2011, you’ll earn cash or Reward Points for each successful referral to Citibank.

Basic Rewards Tier

Bonus Rewards TierFrom January 1 till June 30 2011, refer three or more friends to us successfully and receive bonus rewards of luxury fashion brand gifts or Reward Points.

Three simple steps to refer your friend: Share your Citibank experience with family and friends

Ensure your friends or family members have no objections to us contacting them

Submit their contact details to your Relationship Manager or via www.ipb.citibank.com.sg For more details, please contact your Relationship Manager or call our 24-Hour Hotline at +65 6426 3368.

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+Citibank Global Transfer is available between participating Citibank branches and is subject to a maximum of S$20,000 per day.

^Global View of Accounts is a service offered to Citigold clients via Citibank Online. Enjoy the convenience of an online consolidated view of your Citibank accounts, including accounts held in other participating countries. Participating countries include China, Hong Kong, Australia, Indonesia and Singapore (i.e. Global Consumer Bank and IPB Singapore). Through Global View of Accounts, your internet home page will provide a summarised view of all your Citibank accounts in each participating country. You can then further launch the internet banking session of any other participating country with a single click and through the provision of your login credentials of that participating country, perform banking activities in respect of your Citibank accounts in that participating country.

*Applicable for major currencies only. Same day outgoing remittances will be based on cut-off times for respective currencies.

*Successful referrals for new Citibanking or Citigold Accounts must be funded with a minimum of US$50,000 (or equivalent) in fresh funds within three calendar months of account establishment date.

^Successful referrals for new Citigold Private Client Accounts must be funded with a minimum of US$1,000,000 (or equivalent) in fresh funds within three calendar months of account establishment date.

New accounts that are joint accounts with existing Citibank customers are not eligible for this promotion. For more details, please visit www.ipb.citibank.com.sg. Terms and conditions apply.

Refer a friend, earn rewards

Citibanking or Citigold PrivateCitigold Accounts* Client Accounts^

US$200 or US$1,000 or2,000 Reward Points 10,000 Reward Pointsper successful referral per successful referral

No of referrals Choice of gift or Reward Points

3 A beautiful pen worth 2,500 US$250

4 An elegant wallet worth 5,000 US$500

5 & above An exquisite timepiece 10,000 worth US$1,000

10 & above An exquisite timepiece 25,000 worth US$2,500

CITI BUZZ


6 | INTOUCH

INDULGE

A PRIVATE DINING ROOM IS a popular choice for an exclusive celebration with friends, family or business colleagues. Usually a special side room set apart from the main dining area of top hotels and restaurants, it promises a more intimate atmosphere with exclusive attention from kitchen and service staff. Today, the private dining concept is broadening out with a growing trend for entire, stand-alone restaurants to supply a bespoke gastronomic experience. Often available by reservation only, these restaurants give an opportunity to discuss the menu directly with the chef or to watch him at work.

One of the most passionate proponents of this approach is Chef Bruce Lim. Thanks to his show on the

Asian Food Channel, this larger-than-life culinary artist has become well known for his freestyle approach to cooking. In Manila, dinner guests at his reservation-only private eatery, Chef’s Kitchen, are treated to a front-row personal cooking performance as he prepares a constantly changing menu. Lim, who is Filipino-Chinese but grew up in America, takes pride in using only local ingredients to serve up ingenious new combinations such as chilled carrot soup spiked with ginger and scallop ceviche, or cinnamon-infl ected mango strudel encased in crisp fi lo pastry.

Another private dining concept not afraid to stand out from the crowd is Singapore’s Private Affairs. Set in the Eastern part of the island far from more traditional fi ne dining

locations in the city centre, this chic 40-seat restaurant is tucked away in a beautifully restored shophouse in the up-and-coming Joo Chiat district. Under the wing of talented young chef Paul Ng, the focus in these elegant surroundings is fusion – modern European cuisine with a touch of Asian fl avors. Ng also likes to venture into the cozy dining area to chat with his guests, perhaps to discuss the fi ner points of his supremely elaborate white lobster bisque with salmon and lobster cannelloni, capsicum salsa and lemongrass crumbs, or the pan-roasted barramundi with purple artichoke, seaweed puree and saffron vanilla cream. Expect the conversations to be similarly rich and intriguing.

Meanwhile in Shanghai, China, arguably the most adventurous and extravagant private dining concept of all is currently under development. The brainchild of maverick French-born Chef Paul Pairet, this bold new venture is called Ultraviolet – a restaurant with only ten chairs, where guests will savor a 20-course avant-garde menu at a communal table. Pairet and his team will deliver a personalized ‘sensory play’ featuring a high-tech system that controls lighting, music, scent, projections and even the fl ow of air. What’s more, the restaurant’s location is kept secret; guests will be picked up from a prearranged meeting point in the city centre before being transported to their mystery dining destination. You really cannot get much more private than that.

CHEF’S TABLEUnit 106, The Infi nity Tower, 26th Street, The Fort, Global City, Taguig, Philippines.chefstablemanila.com

PRIVATE AFFAIRS45 Joo Chiat Place, Singapore.Tel: +65 6440 0601privateaffairs.com.sg

ULTRAVIOLETShanghai, China. www.uvbypp.cc

Kurobuta pork cheek – one of Chef Paul Ng’s

typically artistic creations at

Private Affairs

An innovative new breed of concept restaurant creates an exclusive

new dimension for your dining experience.

Special reservations

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INTOUCH | 7

Expert wealth care What will be discussed during a typical portfolio review session?During each review with a PC, three pillars of wealth management are covered: Wealth Growth (using investment strategies to grow client’s portfolio at a rate faster than infl ation and deposit); Wealth Protection (using insurance to provide fi nancial security for family members); and Wealth Succession (estate planning). During the review of investments, the PC will share knowledge of fi nancial market changes and explain how this could impact the client’s portfolio. The PC would then discuss asset allocation strategies and present some rebalancing ideas.

How can a client help to make the portfolio review more meaningful? The portfolio review is a good time for customers to give updates on any changes in their life or fi nancial goals and plans. Most clients would

already have some concerns when they see us. These could be related to a change in their life stage (such as retirement, inheritance, a lay off, the birth of a child, or migration) or a change in the fi nancial market. We encourage clients to be upfront with us about any issues so that we can address them directly.

After a portfolio review is conducted, what would you do as a follow up? During each Portfolio Review session, we note down all of our client’s instructions, including any requests for further information. After the meeting, we would follow up with the client to provide this information because we believe this is key to help clients make the best decisions. Furthermore, we encourage clients to arrange an appointment with their PC at least once every six months for a review. A Portfolio Review is a fi nancial health check that proves much more benefi cial to a client when conducted periodically and in a disciplined manner. Between periodic review sessions, clients can also approach the PC at any time if they feel uneasy about their portfolio.

How can I arrange for a portfolio review with a Portfolio Counselor? Most of these review sessions are arranged through the Relationship Managers. However, some seasoned clients will contact the PC directly for subsequent review. If you wish to conduct a portfolio review, please speak with your dedicated Citigold Private Client Relationship Manager and they can assist to make the necessary arrangements.

UP-TO-THE-MINUTE information and sound research that spans all investment sectors and

continents is invaluable to making informed fi nancial decisions. As a Citigold Private Client, you enjoy exclusive access to the very best knowledge and insights from our expert team of Portfolio Counselors (PC) as well as regular portfolio reviews to ensure that your portfolio remains aligned with current market conditions. To help provide a better understanding of what a portfolio review is all about, Intouch asked Ryan Lim, PC Team Head, to shed some light on how the team of PCs can assist with your fi nancial planning.

Can you explain the role of a Portfolio Counselor?This is a special service reserved for the Citigold Private Clients. The PCs complement our Relationship Managers by providing objective portfolio review services to our clients. Their performance is not tied to revenue, but to clients’ satisfaction with the bank. All PCs in the team are highly qualifi ed with most having received post-graduate education and at least 10 years of market experience. Their proximity to the market helps to deliver timely information and enables our clients to make sound decisions. As well as investment review, PCs are qualifi ed to discuss clients’ insurance and estate planning needs.

Ryan Lim, PC Team Head

CITIGOLD PRIVATE CLIENT


8 | INTOUCH

LUXURY ESCAPES

EVER YEARNED FOR A LUXURY TROPICAL HIDEAWAY that’s just big enough for you and your loved ones? Then the tiny Indonesian island of Nikoi might be your dream getaway. The only signs of human habitation on this 16-hectare island are a handful of zen-like driftwood villas, a spectacular pool set amongst white granite boulders, a beach bar and two open-air dining rooms. Best of all, it’s only three hours from Singapore.

Nikoi is owned by an Australian couple, Andrew and Julia Dixon, who have developed it into a high-end eco-resort. Eco-tourism is a big part of their vision, hence most of the building materials used are native to the island, including sea almond and mangrove driftwood, with alang-alang grass thatch so that the accommodation blends into the leafy green backcloth of the jungle behind.

Eco tourism doesn’t mean compromising on the ‘luxe’ side of things, though. Arriving by Nikoi’s

high-speed launch instantly blows away the fatigue of the journey, so by the time you’re sipping your welcoming fresh watermelon juice at reception, you’re already in holiday mood. A rustic theme characterizes the décor of the two-storey villas, created by the use of a myriad of stone and chunky wood. Each villa incorporates a seductively large master bedroom with a sleek ensuite bathrooms, and generous balconies to maximize the gorgeous sea views.

The beach villas’ large vaulted

There’s a growing trend for luxurious resorts that display

sensitivity to the environment and a harmonious relationship

with local cultures. ROD MACKENZIE seeks out the best

eco-luxe holidays

Natural beauties


INTOUCH | 9

Treasure island – Nikoi’s main bar and (left) serene views of tropical seas at every turn

roofs catch plenty of cooling breezes making air conditioning unnecessary. Water is solar heated, and there are no telephones or televisions in the rooms thus encouraging pure relaxation of the mind. There is cellphone reception, but wireless Internet is available only near the main offi ce. The only modern concessions are an iPod dock, lights and a ceiling fan.

Head downstairs for the ultimate chill-out spaces – an open-air lounge area complete with day beds and a bar, providing sanctuary for breakfast and watching the spectacular sunset. There’s also a private massage pavilion, and best of all, each villa has direct access to its own pristine strip of beach.

Meals can be enjoyed in the privacy of your own accommodation, or you can walk barefoot on the resorts dining-rooms’ sandy fl oor as you feast on fresh, seasonal dishes made almost entirely from local ingredients, like grilled seafood, crunchy stir-fries and sweet tropical fruit. If long, lazy dinners or days unwinding by the pool get too much, you can borrow kayaks and catamarans, and equipment for snorkeling over the pristine coral reefs.

Nikoi’s owners believe eco-

tourism isn’t just about being kind to the natural environment – it also involves taking care of the local community. The island hires local staff and runs a series of community development programs to improve health and educational facilities in the village. Great care has been taken to safeguard the island as a sanctuary for its natural inhabitants, so you might be lucky enough to spot Nikoi’s resident pair of white-bellied sea eagles, or – on full moon nights – the green turtles who nest on the beach. Regular visitors include Brahminy kites, stork-billed kingfi shers, frigate birds, golden orioles and great billed herons.

It all adds up to a very successful formula, with weekends at Nikoi booked at least two months in advance. The owners have plans to extend their eco-vision to a cluster of fi ve islands some 60 kilometres away. These are home to three stunning lagoons – one of which is large enough to land a seaplane on. “As with Nikoi, the focus will be on making it as sustainable as possible,” says Dixon. Get ready, then, to slap on your Havaianas and shake out that designer sarong – just remember to leave the iPad behind.

www.nikoi.com

STAYING GREEN

According to The International Ecotourism Society, eco-tourism is defi ned as “responsible travel to natural areas which conserves the environment and improves the welfare of the local people”.


10 | INTOUCH

LUXURY ESCAPES

MORE ECO-FRIENDLY HOLIDAY EXPERIENCES

• Soneva Gili Resort and Spa, Maldives

Set on idyllic Lankanfushi Island in the North Male isle, the 45 villas of this luxury resort were constructed from renewable and certifi ed-sustainable sources. The resort also has its own organic gardens and sources much of its produce from local farms and fi shermen, thereby reducing air miles and non-biodegradable packaging.www.sixsenses.com/soneva-gili

• Heritance Kandalama, Sri Lanka

The innovative design of this upmarket hotel blends the building into its natural surroundings (a lush mountainside overlooking a lake) and maximizes natural light in order to reduce energy use. It’s set on raised platform allowing water to fl ow beneath the building, which further reduces its impact on the surrounding eco-system. www.heritancehotels.com/kandalama

• Sarínbuana Eco Lodge, Bali

Deep in the rainforest of northwestern Bali’s Mount Batukaru, only 90 minutes from Ubud, this small mountain sanctuary was constructed with local sustainable timber, including coconut and bamboo, for low-impact design. All waste is recycled; guests can offset their carbon emissions by planting trees in the lodge’s own 800-hectare rainforest reserve. www.baliecolodge.com

• Frangipani Langkawi Resort and Spa, Malaysia

This secluded eco-resort is tucked away on a quiet stretch of Langkawi Island’s prime coastline at Pantai Tengah. Solar panels have been installed on every building in a bid to reduce dependence on electrical energy. Wastewater is recycled via the resort’s own wetlands, coupled with a mechanical aeration device. The treated water is used to sustain the resort’s organic vegetable garden.www.frangipanilangkawi.com

Above and below: Soneva Gill Resort and Spa, Maldives


INTOUCH | 11

ASIAN ART IN SINGAPORE

FAIRS

• Art Stage Singapore

Jan 12-16 2011

www.artstagesingapore.com

• Singapore Biennale 2011

Mar 13-May 15 2011

www.singaporebiennale.org

• ARTSingapore 2011

Sep 29-Oct 3 2011

www.artsingapore.net

GALLERIES

• Ode To Art

Features some of the biggest names in international art at two Singapore showrooms while also promoting many promising emerging artists from various genres, including painting, sculpture and photography. 252, North Bridge Road, #01-36E/F Raffl es City Shopping Centre

2, Bayfront Avenue, #01-19 The Shoppes at Marina Bay Sands www.odetoart.com

• Red Sea Gallery

Set in a former army barracks, the stylish 6,000 square foot gallery is celebrating its fi rst decade as one of Singapore’s most vibrant and visited art galleries. It features a strong collection of works from South East Asia, including Vietnam and Indonesia, as well as pieces from Australia and Europe.Block 9 Dempsey Road, #01-10 Dempsey Hillwww.redseagallery.com

• Yang Gallery

Housing one of the fi nest selections of Chinese art in Singapore, you’ll fi nd a variety of styles ranging from traditional to contemporary art.19 Tanglin Road, #02-41Tanglin Shopping Centrewww.yanggallery.com.sg

SINGAPORE PASSION

Above: The Splash of the Uncanny (Nature Morte/Jagannath Panda)

SINGAPORE IS EMBRACING modern art like never before. Signs of this remarkable awakening are everywhere, from the queues snaking outside blockbuster shows put on by the likes of the Singapore Art Museum (SAM) to the news that ARTSingapore, Asia’s longest running contemporary art fair, closed their 10th edition last October with an estimated S$6 million in sales, a 20 per cent increase compared to 2009.

Now that it is starting to be seen and appreciated by a much wider audience, contemporary Asian art is booming. What’s more, the commercial art world is becoming less elitist and exclusive, with new amateur collectors encouraged to enter the scene, whether to purchase for investment or purely for the love of local art.

This trend will be further nurtured in 2011, starting with Art Stage Singapore (Jan 12-16), a contemporary art fair that places

cutting-edge works from Asia alongside the best examples from Europe and America. This will show that creativity in the East is a match for works coming out of the West. Based at the Marina Bay Sands, the event has terrifi c international credentials too, being the brainchild of Lorenzo Rudolph, the visionary behind highly-regarded events such as Art Basel and Art Miami.

The next big event is the Singapore Biennale 2011 (Mar 13-May 15). Visitors can expect an eclectic mix of works by local talents such as Tan Pin Pin and Ming Wong as well as international names like Charles Sandison from the UK and Japan’s Tatzu Nishi. Featuring large-scale installations, attention-grabbing digital projections and bizarre sculptures, the Biennale is a grand entertainment spectacle where the audience need not have an expert knowledge of art, simply an open mind.

Art makes a splash


12 | INTOUCH

MARKET WATCH

A slow and winding road to recovery

2011 ANNUAL OUTLOOK

INVESTORS, LIKE FINANCIAL MARKETS, do not like uncertainty and lack of visibility. Yet as we look forward to 2011, the outlook does not appear any more predictable than when we entered 2010. Just when it felt safe to venture out, storm clouds have appeared, sending us back looking for cover again. For much of 2010, there were many crosscurrents as the global economy struggled to regain momentum after emerging from the worst fi nancial crisis in a generation. The recovery has been uneven, with developed economies still struggling with insipid activity and high unemployment, even as emerging markets fi ght to contain strong growth and infl ationary pressures.

Looking back to 2010, it was a tale of two economic halves. The year began robustly as inventories were rebuilt and pent up demand saw resurgence in manufacturing


INTOUCH | 13

and exports. But confi dence in the global recovery vanished just as quickly. By mid-year, fears for a return to recession had surfaced, sparked by a fi scal crisis in Europe and a slowing US economy, hobbled by a weak job environment. All in, it has been a year of marked contrast, with policymakers trying their best to maintain what we had tipped as ‘A Balancing Act’ for the global economy.

Against this backdrop, our themes in the second half of 2010 did relatively well. Exposure to North Asian equities and Asian currencies for the second half of the year worked well to tap on the robust growth of emerging markets. The benchmark stock indices for Hong Kong (Hang Seng Index), Taiwan (Taiwan Stock Exchange Index) and Korea (KOSPI Index) rose 16.4%, 13.5% and 16% respectively, from June to November. Hedge funds, especially long-short, credit and macro strategies, also did relatively well. The HFRI Fund Weighted Composite index has gained 6.5% from June to November. Our longer-term themes continued to yield a mixed performance. Healthcare and Infrastructure were disappointing but distressed debt has performed well.

As we look into 2011, it is likely to look and feel very much like 2010. The issues that dominated the economic landscape last year are probably going to continue resonating into the New Year. Uneven growth in the global economy, defl ation and infl ation

debates, and festering fears of currency and trade wars are likely to be punctuated by bouts of heightened political tension. Europe’s fi scal crisis of last summer lingers on and there remains an air of risk aversion and fear about the markets. The US, which has embarked on a fresh round of quantitative easing (QE2), continues to face signifi cant economic uncertainty and could still slip

into a double dip recession. This is further compounded by new political realities, in which

a newly elected Congress is likely to resist President Obama’s economic policies. Global equity markets can thus be expected to stay volatile as liquidity from developed economies continues to fl ood into emerging markets. The fi rst half of 2011 is likely to be dominated by the effects of QE2, political distractions in the US as well as efforts by emerging markets to arrest asset infl ation. Commodities may also see continued upward pressure, fueled by fears of further economic uncertainty and US dollar weakness. On average, we think the greenback is likely to trade within a narrow range against the major currencies for the next six months, while Asian currencies could see further upside – depending on what happens to China’s Renminbi. Overall, we believe the longer term trend is for the US dollar to end the year weaker, peppered with intermittent periods of strength.

Thematically, with all the uncertainties, we feel that investors need to be nimble and adjust their asset allocations on a regular basis

to adapt to fast-changing market conditions. Strategically, we remain positive on emerging market consumerism and hedge funds. Emerging market economies are expected to continue to perform well, with many, especially the BRIC (Brazil, Russia, India, China), now focused on driving growth more from domestic consumption, and less from exports. Hedge funds, especially long-short, macro and event-driven strategies, are likely to continue to thrive as fi nancial markets are expected to remain volatile. Tactically, we think China’s growth remains attractive and this could be best played through Hong Kong’s equity market. Commodity-based markets such as Brazil and Russia are also likely to perform better on the heels of strong commodity prices.

In conclusion, 2011 is looking to be a year of slow recovery for the global economy, buffeted by headwinds from fi scal issues, currency volatility, political uncertainty and potential infl ationary pressures. Overall, we are optimistic about global economic growth but some caution is warranted given that the restructuring of global imbalances is likely to be a diffi cult process, fraught with risk. In this environment, investment returns need to be balanced with risk management and investors would do well to maintain a balanced and disciplined approach to their portfolios.

With all the uncertainties, investors need to be nimble and adjust their asset allocations on a regular basis to adapt to fast-changing market conditions

HAREN SHAHSenior Investment StrategistWealth Management, Asia Pacifi c Citi


14 | INTOUCH

SAVVY INVESTING

An introduction to investingWhile we may appreciate the importance of investing for the future, the

sheer array of investment opportunities available can still be daunting.

We may read up on investment opportunities, but how many of us can

master the markets and make money?

THE TRUTH IS, INVESTING is like taking a trip. You need to know where you want to go and have an idea of how long it will take you to get there. Here are some additional points to bear in mind:• You will need to plan a route to help you navigate your way.• Before the trip, you should make

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all the necessary preparations. Be aware that you may encounter setbacks along the way.• You need to look out for ‘road signs’ or seek guidance along the way to ensure that you’re on the right path.

That said, investment products are becoming more and more

sophisticated, and the average ‘road signs’ along the way may not provide enough guidance for most investors.

However, with the right knowledge, some investing discipline and professional advice, you can achieve better investment returns and make your money work


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more profi tably for you. So with good planning, your retirement may well turn out to be one long enjoyable roadtrip.

Investment objectives and retirement plans Investment objectives are essentially a combination of your current and future needs. They will determine the type of investments you eventually decide to go for. First, establish your main priorities by getting the big issues, such as when you plan to retire, out of the way. When these are settled, you can start looking at other objectives.

Investment knowledgeMany of us have some contact with the world of investing, whether we realize it or not. That life insurance policies and the cash in your savings account are all investments for your future. And if you run a business, you may already be monitoring fi nancial market movements regularly.

While your existing knowledge will help you in managing your money, remember an important rule in investing: avoid investment products or strategies that you don’t understand. If you don’t understand the product, ask. If you don’t understand the answer you have been given, clarify.

Financial situationWhat are your monthly expenses like? This can affect your available funds and the time horizon for your investments. Don’t sweat the small, miscellaneous expenses that are hard to track. Rather, focus on the larger, more signifi cant expenses: how much outstanding debt do you have currently? Do you have a mortgage or car loan? Do you need to fund your children’s university education? Are you supporting your

parents? How much do you pay in insurance premiums?

Take note of the money that’s coming in too. Do you have a sideline that generates some income? Are you expecting any annuity payments? How much bonus or commission can you realistically expect on top of your income?

What is your net worth?Assessing your net worth is another important factor in your investment planning. Net worth refers to the net position of your total assets after taking into consideration your total liabilities. A positive number means your next step in fi nancial planning should be targeting at growing your net worth. If it is negative, then it is time to get your fi nances back on the right track.

You should re-calculate your net worth annually to review your progress and compare it with your fi nancial goals. Estimate what investment returns you will need in order to reach your fi nancial goals. This is a signifi cant part of the fi nancial planning process and you might need the help of a fi nancial advisor or fi nancial computer programme to fi nd out the gap between your current situation and future needs.

Once you have assessed your fi nancial situation, you may want to start looking at investment options that are in line with your fi nancial goals. One of the most commonly used investment strategies is Dollar Cost Averaging. This is when you contribute a fi xed amount each month to invest on a regular basis. This premise of Dollar Cost Averaging is that you can never perfectly time the share market to buy low and sell high all the time, and hence you should buy a small amount each time

instead of investing a lump sum at one go. Although this strategy does not protect you from market fl uctuations, the average cost of investments over time should be lower compared to when you make one-off investments. The theory behind this is that regular investing allows you to buy more shares when prices are low and fewer shares when prices are high.

Dollar Cost Averaging is especially useful in a volatile market or when you are unsure of where the market is headed (which, in truth, would apply to most of us).

Text excerpt from the ‘Managing Your Wealth’ book series. Please refer to www.citibank.com.sg/myw for more details.

DETERMINING YOUR INVESTMENT OBJECTIVES

1. WHAT ARE YOUR RETIREMENT PLANS?

When do you plan to retire? Will your company or government provide a suffi cient pension when you retire?

2. WHAT ARE YOUR INVESTMENT OBJECTIVES?

Are you looking to buy a house or planning to fi nance a university education for your children? Are you more concerned about protecting your wealth or are you willing to take risks? Are you willing to receive your returns only as a lump sum at the end of your investment horizon, or do you want to receive stable dividends along the way? These are not mutually exclusive options but it is useful to give all scenarios due consideration before deciding on your investment strategy.

3. WHAT DO YOU ALREADY KNOW SO FAR ABOUT

INVESTING?

Do you track the fi nancial markets as part of your job? Have you invested in insurance or mutual funds before?

4. WHAT IS YOUR FINANCIAL SITUATION?

Who are you supporting on your pay cheque? What loans do you have to service every month? Do you have secondary sources of income? Are you expecting a large sum of money such as a gratuity or an inheritance later in life? What fi nancial help will you need?

Your answers will shape your own unique investment roadmap.


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