Australian Immigration Daily News

Since the global financial crisis we have been impressing on clients the need to have a diversified portfolio, both by assets class and geographically. It’s been a sound strategy as over the past decade it has become clear we are in an age of change, and it is driving volatility and making the wealthy ponder how to protect their wealth.

Events like the GFC, European sovereign crisis in 2011, Chinese stock market crash in 2016, trade wars last year and COVID-19 this year have made markets difficult to navigate, and increased reliance on Australian migration and immigration agents to provide avenues for investment guidance.

We have adopted the term VUCA (volatility, uncertainty, confusion and ambiguity) to describe this change, and it is being driven by technology, globalisation, rising lifespans and increasing wealth in developing nations, particularly China.

The latter is important, as although China’s growth over the past 20 years has been extraordinary the domestic market lacks some of the key elements of secure investing, like rule of law, and markets led economy.

A result is that wealthy Chinese are aware of the need for geographical diversification, and with its stable government, defined legal system and strong corporate governance, Australia is a key investment destination.

For immigrants with substantial funds behind them there are options available. Immigration agents are well aware of the Significant Investor Visa (SIV) program, which since its introduction in late 2012 has brought to Australia AUD11.56 billion in investment funds, as of December 31 2019.

We have noticed at Citi that in times of increased volatility there is a corresponding increase in offshore queries for our investment services.

For instance, during the unrest in Hong Kong last year Citi Australia’s wealth management business saw a 50 per cent increase in funds flow out of Hong Kong and into Australia in July and August, as clients sought to diversify their investments, particularly into foreign exchange, term deposits and bonds.

Citi’s Relationship Managers said the increased inflows were a result of their high-net-worth clients viewing Australia as a ‘safe haven’ during the political unrest.

We see a similar requirement for lower risk and fixed income solutions from clients coming in under the SIV program.

Although participants need to fund a minimum of AUD5 million in complying investments under the SIV program, we typically find that requirement exceeded. Given the substantial funds to be allocated clients are looking for a trusted partner to meet their investment needs.

Utilising its global capability Citi Australia Wealth Management offers leading fixed income solutions. We offer unrivaled access to Australian and international corporate bonds, and we have tailored investments to get exposure to the Australian Stock Market while eliminating volatility under most circumstances.

To provide easy management of other capital we can also provide top tier foreign exchange facilities with highly competitive rates, and USD account and investment solutions.

We invite you to talk with us so we can discuss how we can support and service your clients.

In addition to our investment expertise we also provide to clients:

• Dedicated relationship managers that are multi-lingual and work with international clients.
• Experts who understand visa application processes.
• Investment and experiential events and seminars to keep clients informed and to let them know they are valued.

To refer your clients to Citi, or to find out more please click here.