Market Linked Investments (MLIs) can form an important part of an investment portfolio, providing investors with portfolio diversification and the potential for enhanced returns. These innovative products provide a more flexible asset allocation and easy access to defensive investment strategies for fast changing market conditions.
- Provides the potential for enhanced returns - in the form of income and/or capital growth.
- Offers an efficient way to take advantage of a particular market scenario.
- Investment returns not directly correlated to market performance - MLIs can be designed to provide potential enhanced returns in flat, moderately rising and in some cases falling markets. Depending on the structure, the investment has the ability to outperform traditional investments.
Market Linked Investments (MLIs) are financial investment instruments designed to meet specific investor needs that are difficult to be met by traditional investment instruments. They give investors the opportunity to potentially profit from particular market conditions. It also means that investors can potentially find gains in benign or even falling markets.
Citibank begins by identifying strategies that are consistent with our research while taking into consideration performance track records. We then tailor the MLIs to take advantage of current market trends and provide investors based on their risk appetite with the opportunity to potentially earn enhanced return.
MLIs can be used as an alternative to a direct investment and as part of the asset allocation process to reduce risk exposure of a portfolio. Enable portfolio diversification into a wide variety of underlying assets and markets with limited downside risks compared with direct equity. This gives investors with smaller risk appetites to comfortably incorporate growth assets into their portfolio.
MLI will give you access to markets, sectors and investment strategies with payoff structures not typically available to individual investors, as they are either too expensive to access or inaccessible due to investment restrictions.
Derivatives component provides the MLI its potential to yield enhanced return. This component is linked to the underlying references / assets, which may be any financial reference / asset, ranging from equities, commodities, foreign currencies, to indices and interest rates. The potential return will depend on the MLI's structure and the performance of the underlying references / assets.
- You are an investor looking for a product that offers potential to gain higher returns.
- You are interested in products that offer different levels of protection against capital loss relative to other investments.
- You are a balanced or aggressive investor looking for investment opportunities to form part of the defensive portion of your investment portfolio.
- You are looking for the potential for enhanced returns in times of neutral, moderately bullish to bearish market performance and may not necessarily have a view on the future direction of the underlying market.
MLIs are structured investments that are designed for sophisticated investors. It is important that investors understand the features and the investments risks of the MLI before investing. Some of the key risks of MLIs include:-
- Credit risk
- Market/underperformance risk
- Liquidity risk
- Operational risk
- Commitment risk
- Options risk
- Currency risk
- Potential return risk
Investment products* are not deposits and are not obligations of, not guaranteed by, and not insured by, Citibank Berhad, Citibank N.A., Citigroup Inc. or any of their affiliates or subsidiaries, or by any government or insurance agency. Investment products are subject to investment risks, including the possible loss of the principal amount invested.
*For any Market Linked Investments issued by Citibank Berhad, please refer to the relevant product disclosure sheet for information on whether your investment is guaranteed by Citibank Berhad and protected by Perbadanan Insurans Deposit Malaysia (PIDM).
THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET/REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
NON-PRINCIPAL PROTECTED AND PARTIALLY PRINCIPAL PROTECTED MARKET-LINKED INVESTMENTS ARE NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM).