The Citigroup Private Bank Global Survey of Most Affluent Group Ever Polled Reveals Geographic...

NEW YORK -- The appearance of distinct geographic preferences in wealth behavior and investing preferences among the world's ultra-affluent is one of the intriguing findings from The Citigroup Private Bank Survey of the World's Wealthiest Families: Wealth Management Attitudes and Perspectives.

The study also revealed a number of surprising global themes such as the tendency of ultra-affluent investors to question broad asset allocation strategies and a tendency to fall into some of the same pitfalls as the wider investor population when making investment decisions.

The Citigroup Private Bank conducted a global survey of many of the most affluent investors in the world on their views on how they manage their wealth, their investment priorities and their risk profiles. Considered to be the most affluent group ever polled, the survey consisted of investors with a net worth of more than $25 million -- and more than 60 percent of survey participants had a net worth in excess of $100 million. The survey is a compilation of findings from 120 in-depth one-on-one interviews with investors in the U.S., Latin America, Europe, the Middle East and the Asia Pacific Region. The interviews and development of the findings were supported by McKinsey & Company, an international management consulting firm.

"While every wealthy family is unique and may reach decisions somewhat differently, the survey results reveal clear, regional preferences in investing and some dominant attitudes toward wealth," said Todd S. Thomson, CEO of Citigroup Global Wealth Management. "To see past the cliches regarding global wealth, we think this survey is a valuable tool to help us understand how people from different parts of the world plan their investments, how they make decisions, and what they hope to achieve with their wealth. What we see is that the responses vary when coming from an investor from the United States, Europe, Asia or Latin America."

Regional Trends:

--Among other findings, it was shown that, compared to other regions, US investors have the strongest demand for and knowledge of alternative products.

--Investors in the Middle East prefer real estate and capital protected products.

--Europeans are increasingly interested in hard assets such as art or real estate.

--Asia Pacific investors are increasingly looking at local investment opportunities and are eager to learn what their options are to invest in local growth.

--In Latin America, study participants focused on the importance to them of the strength of their financial institution, and not necessarily on a particular asset class.

Some sample comments from respondents:

--"There is no reward in my family for doing great (with) the portfolio, and you only get grief if you lose money, so I invest it very conservatively."

Asia Pacific investor, 40-50 years old, $100MM net worth

--"We don't have a (textbook) asset allocation approach. We take a view on the market and steer the portfolio that way."

European investor, 30-40 years old, $1 billion net worth

--"New managers come to me. I've been placing money in hedge funds since the early 1990s."

United States investor, 55-65 years old, $50-75MM net worth

Some themes were consistent around the world. The survey found that ultra-affluent investors can often fall into the same pitfalls as the broader population when making investment decisions. They may chase riskier short-term performance (both across asset classes and between investment managers). They might try to time the market. They may underweight unfamiliar asset classes in their investment portfolios. In fact, surprisingly few ultra-affluent investors focus on asset allocation as an important wealth management tool; like lower-tier investors, the wealthy appear to be largely unaware of -- or not convinced of -- the benefits of strategic asset allocation.

According to David Rosenberg, U.S. Head of Investment Solutions at The Citigroup Private Bank, "The survey confirmed some widely reported trends among ultra-affluent investors such as the increasing financial sophistication of this population overall and their continued interest in alternative investments. However, it also highlighted what we believe is a real need for investors to look at their asset allocation holistically and better understand the risks that may be present."

For more information on the survey, please log onto http://www.citibank.com/privatebank

The Citigroup Private Bank, one of the largest private banking businesses in the world, provides personalized wealth management services for clients through its nearly 470 private bankers and 230 product specialists in more than 30 countries. The Citigroup Private Bank offers unmatched global reach, coupled with a full range of portfolio management and investment advisory services from Citigroup Asset Management, an array of structured lending and banking services, as well as expertise from the Global Corporate and Investment Bank. Citigroup Private Bankers act as financial architects, designing and coordinating insightful solutions for individual client needs, with an emphasis on personalized, confidential service. The Citigroup Private Bank provides services and products through various Citigroup affiliates. Additional information may be found at: www.citigroup.com/privatebank.

Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in approximately 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at www.citigroup.com