Citicorp introduces CitiSelect portfolios; new family of asset allocation mutual funds available through Citicorp Investment Services.NEW YORK--(BUSINESS WIRE)--June 12, 1996--Citicorp Investment Services (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ) today announced that it will make CitiSelect(SM) portfolios, a new family of mutual funds, available to investors beginning June 17, 1996. Each portfolio provides a diversified investment in a single portfolio and is grounded on a proprietary asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. strategy. CitiSelect portfolios will initially offer three separate portfolios, CitiSelect Folio 200, Folio 300 and Folio 400. Each is designed around a strategic asset allocation Strategic Asset Allocation A portfolio strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation. Notes: At the inception of the portfolio, a "base policy mix" is established based on expected returns. approach that seeks an optimal mix of stocks, bonds and cash within specific levels of risk and potential returns. Folio 200 will follow a relatively conservative, income-oriented approach, Folio 300 will take a more balanced approach, and Folio 400 will pursue a more aggressive, growth-oriented strategy. Additional CitiSelect portfolios may be added at a later date. "CitiSelect portfolios are intended to offer investors a full level of diversification in one investment as an alternative to the confusing array of mutual fund products in today's market," said Steven Freiberg, chairman and chief executive officer of Citicorp Investment Services. "CitiSelect may be the right choice for customers who don't wish to actively monitor and regularly reallocate Verb 1. reallocate - allocate, distribute, or apportion anew; "Congressional seats are reapportioned on the basis of census data" reapportion allocate, apportion - distribute according to a plan or set apart for a special purpose; "I am allocating a loaf of their portfolio." CIS has structured the process of investing in CitiSelect portfolios with each investor's personal attitudes toward risk and potential for reward in mind. Factors taken into account when creating a personal investment plan include the customer's current financial situation, anticipated short- and long-term financial needs, tolerance for risk and general concerns about investing. These considerations can then be matched to an appropriate CitiSelect portfolio. Regular, ongoing communication with customers about the performance of CitiSelect portfolios is also an important part of the overall service offered by CIS. Citibank,N.A., is the lead investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and and will make the key decisions about the percentages of each fund to be invested in each asset category. Together with its affiliates, the bank currently manages over $83 billion in assets worldwide. Larry Keblusek, U.S. Chief Investment Officer of Citibank Global Asset Management (CGAM CGAM Centre for Global Atmospheric Modelling (UK) CGAM Computer Generated Images for Advertising & Marketing (conference) ) Institutional and Portfolio Manager of CitiSelect portfolios, notes that, "Citibank will be responsible for defining asset allocation ranges and setting the investment guidelines and restrictions by asset class. Each CitiSelect portfolio is reviewed quarterly and may be rebalanced at that time. In addition, as lead investment advisor, Citibank is responsible for monitoring the performance of each subadvisor." Citibank will manage large-cap growth stocks, small-cap growth stocks, domestic bonds and cash. In addition to its own portfolio managers, Citibank has also retained a team of leading subadvisors to lend specific expertise in certain asset classes. They currently include Miller Anderson & Sherrerd, L.L.P. for large-cap value stocks Value stocks Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or P/E ratios) in a variety of countries. , Franklin Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal Inc. for small-cap value stocks, Hotchkis & Wiley for international stocks and Pacific Investment Management Co. (PIMCO PIMCO Pacific Investment Management Company ) for international bonds. According to Peter Meenan, Head of Global Funds at Citibank, "Asset allocation funds have been popular in the marketplace over the past several years, because professional investors have acknowledged how important the allocation decision is to overall investment performance and how critical diversification is to managing risk." He continued, "The CitiSelect portfolios are unusual because in addition to asset allocation, they offer individual investors a level of diversification available typically to large institutional investors. 'Smart investing made simple' is the way we describe the portfolios to our customers." During a special introductory period, running from June 17 to July 19, the CitiSelect portfolios will be offered with no initial sales charge Sales Charge A commission or fee paid by an investor at the time of purchasing mutual fund shares. The charge is paid to a mutual fund salesperson or financial advisor and is intended to provide compensation for the financial salesperson's efforts in assisting their client select . Thereafter, the funds, which require a minimum initial investment of $1000, will carry a 4.00% front-end load Front-End Load A commission or sales fee charged at the time of the initial purchase for an investment, usually mutual funds and insurance policies. It is deducted from the investment amount and thus, lowers the size of the investment. , with a declining load structure for purchases of $100,000 or more. In addition, clients can freely exchange their investments between the offered portfolios.(a) -0- Securities and annuities transactions are through Citicorp Investment Services, member NASD/SIPC, a licensed insurance agency, and a subsidiary of Citibank, N.A. Investment products are not obligations of or guaranteed by Citibank or Citicorp Investment Services, are not bank deposits or FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). insured and are subject to investment risks, including possible loss of the principal amount invested. -0- CitiSelect portfolios are made available by The Landmark Funds Broker-Dealer Services Inc. as distributor and Citicorp Investment Services, member NASD/SIPC and a subsidiary of Citibank, N.A., as broker. Each CitiSelect portfolio invests substantially all of its assets in a corresponding series of Asset Allocation Portfolio, a separately registered investment company. During the no initial sales charge period of June 17 - July 19, 1996, distribution and other fund operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. continue to apply. Purchase orders will be accepted beginning June 17, 1996. Ask for a prospectus containing more complete information including management fees, sales charges and other expenses. Read it carefully before investing. (a) Exchange privilege Exchange Privilege The opportunity given to a mutual-fund shareholder to exchange a fund for another within the same fund family at no additional cost. Notes: This privilege allows investors to switch funds when market conditions change. may be changed or discontinued at any time. CONTACT: Citibank Mark Rodgers 212/559-1719 or Ruder Finn Joe Miller 212/715-1602 |
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