<i>Citigold is a wealth management service for clients with total deposits or investments of 5 million baht and above with Citibank Thailand. Citigold offers end-to-end premier banking solutions, including advisory and wealth management services, backed by a dedicated Relationship Manager and team of experts trained by the Citi l Wharton Global Wealth Institute.</i>
Citigold also provides in-depth investment and economic insights to help investors make investment decisions. Citigold customers enjoy an array of exclusive, curated lifestyle and banking privileges. One of Citigold’s product offering is the Allianz Income and Growth mutual fund, featured in this article.
With U.S. GDP having risen above expectations and unemployment at a new low, it could be said that America is becoming great again.
Diversification - a term that most investors are familiar with - is a risk management technique that emphasises a wide variety of investments within a given portfolio.
Because diversification helps reduce the overall portfolio risk and optimise returns, taking a multi-asset approach is a prudent investment option for those looking for investment opportunities in U.S. markets.
Today’s world of low yields, price fluctuations and fear of rising long-term rates presents special challenges for some income-oriented investors. But Allianz Income and Growth mutual fund has a proven track record of generating income through monthly distributions, taking a three-pronged investment strategy that provides a range of other potential benefits.
The Allianz Income and Growth is a multi-asset mutual fund investing mainly in the U.S. with a 3-sleeves approach to achieve diversification. The fund invests in three specific sets of assets:
1. Convertibles provide the potential for income, downside risk mitigation and capital appreciation.
2. High-Yield Bonds may help lower volatility and provide income potential through high coupons.
3. Large-Cap Stocks may provide capital appreciation/ dividend income; an opportunistic covered-call strategy can also add income.
If you’re looking for income but disappointed with the low and fluctuating yields from today’s traditional bonds, perhaps it’s time to rethink investing based on yields alone. Consider Allianz Income and Growth’s approach. It doesn’t focus on income in terms of yield percentages. Instead, it aims to generate steady monthly distributions in terms of dollars and cents. Here’s how it works.
The Fund’s investments focus on three sleeves-convertibles, high-yield bonds and equities with covered calls - the last being on individual equity names, covering around 70% of a stock’s notional value.
The resulting seven potential distribution sources are classified as either Investment Income - comprising high-yield bond coupons, convertible coupons and equity dividends - or Capital Gains, which can include gains from equity sleeve; gains from convertibles sleeve; covered-call option premium or gains from high-yield sleeve.
With the resulting consistent income potential, this strategy is attractive to investors seeking both income for immediate use or for re-investment, which can significantly enhance the investment’s total return.
The Allianz Income and Growth mutual fund has generated positive returns over multiple time periods.
Invest in USA with confidence through Allianz Income and Growth, a multi-asset mutual fund with stellar performance, offered in US Dollar and Euro currencies in Thailand only by Citigold.
To speak with a Citigold relationship manager about these investment products, please call 02-081-0999 or visit https://citi.asia/THdcGAIG for more information.
Disclaimer:
(1) Investments contain certain risk; please study the prospectus and all relevant materials before investing. Investment products are not offered to US persons.
(2) Foreign Exchange Risk: Investors investing in investment products denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal when foreign currency is converted back to the investors’ home currency. Exchange controls may be applicable from time to time to certain foreign currencies. Investors should therefore determine whether any foreign currency investment in suitable for them in the light of their personal investment objectives, financial means, and risk profile.