Citi predicts the US Federal Reserve will cut the interest rate by 25 basis points in March, July, and September this year, respectively, said Vicky Kong, head of wealth for Asia North & Australia at Citi.
Citi Hong Kong highlighted in its 2025 business review that over 70 percent of Citigold Private Clients (CPC), a high-net-worth banking tier that typically requires a minimum of US$1 million (HK$7.8 million) balance, achieved positive returns through diversification in 2025. Clients favored balanced and equity funds with global equity exposure, followed by short-term bond funds.
Alternative investment AUM for CPC increased sevenfold year-on-year, with 28 percent of CPC clients' investment portfolios having AUM allocated to alternative investments, while 30 percent of clients held more than one alternative investment product.
To enhance wealth solutions and greater portfolio diversification, Citi Hong Kong launched a new evergreen fund last Thursday in partnership with global private market firms Blackstone, Blue Owl, and KKR, which contains seven fund types. The first batch, containing three fund types, will start selling in February. The rest of the four fund types will all be released by the coming months. The purchase of each evergreen fund requires a minimum of US$25,000 (HK$195,000).
Looking ahead, Kong said their development in 2026 will focus on wealth business, including Citigold business and private bank. Adding that they will utilize artificial intelligence to enable clients and innovation, as well as introduce a short and long-term investment strategy that empowers clients to meet their investment goals at various stages.
Gloria Leung
