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Citibank Taiwan eyes OBU wealth management market

TAIPEI, Taiwan -- With Taiwan's de-regulation of the offshore banking unit (OBU) business, Citibank Taiwan announced yesterday its further expansion in Taiwan's OBU wealth management business by partnering with Allianz Global Investors Hong Kong Ltd., Value Partners Ltd. and China Asset Management (Hong Kong) Ltd.

“The year 2014 is very meaningful to us,” said Victor Kuan, Chairman of Citibank Taiwan. “Citibank Taiwan will mark 50 years of serving customers in Taiwan this year. For the past five decades, we and our customers have witnessed many important economic miracles together.”

Citibank Taiwan invited OBU customers to give in-depth feedback. The result shows that with the relaxation of the OBU business, 69 percent of customers will consider wiring their overseas funds back to their bank accounts in Taiwan. Among these, about 45 percent of respondents plan to do so because it is more convenient for them to manage their funds. About 28 percent say that they can invest their money in the latest financial products, according to Citibank Taiwan.

The result also shows that investment tools and services attracting OBU customers mostly include renminbi-denominated products (20 percent), offshore funds that have not yet been introduced into Taiwan (16 percent), high yield bonds (13 percent), hedge funds (13 percent), offshore structured products like structured notes (9 percent) and private equity funds (9 percent), Citibank Taiwan said.

Based on these results, Citibank Taiwan will provide its OBU customers with three categories of investment products and services.

Renminbi-denominated Products

Citibank Taiwan will introduce a whole range of renminbi-denominated products, including 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.

Citibank Taiwan Takes the Lead in Offering 26 Premier Funds.

Aside from renminbi-denominated products, offshore funds that have not yet been registered in Taiwan finish in second place and account for 16 percent of the investment tools and services attracting OBU customers most, according to Citibank Taiwan's survey. In a move to meet OBU customers' needs, Citibank Taiwan has partnered with Allianz Global Investors Taiwan Ltd. and Value Partners Ltd. 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.

High Yield Bonds and Structured Products

Citibank Taiwan leads the pack in adding a total of 20 new high yield bonds into its product lines of OBU wealth management, offering OBU customers more choices. For example, those OBU customers who can bear risks of high yield bonds now have the choice of investing a U.S. dollar-denominated bond with annual yield exceeding 8 percent.

Citibank Taiwan will offer new structured products every month upon the trend to help OBU customers manage their assets well, the company said.

“As the pioneer and market leader of wealth management in Taiwan, we have actively taken root in the Taiwanese wealth management market,” Yunny Lee, Head of Consumer Banking of Citibank Taiwan, said. “We also pioneered wealth management in Taiwan by launching our Citigold Wealth Management service in 2001.”

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Victor Kuan, chairman of Citibank Taiwan, third left, Yunny Lee, head of consumer banking at Citibank Taiwan, third right, and Kevin Hu, head of retail banking at Citibank Taiwan, second right, introduce new Citibank OBU wealth management products in Taipei, yesterday.

(Courtesy of Citibank Taiwan)

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