Citigroup S&P Global STARS 80 % Protected Fund
Exclusively via Hansard International

 

Standard & Poor’s Stock Appreciation Ranking System (STARS)S&P is a globally recognised provider of investment data and independent research. S&P’s equity research capability goes back to the 1920’s and currently benefits from the expertise of over 100 analysts researching and providing investment views on around 1,900 stocks from across the globe.

To assist investors in evaluating the performance potential of equities, S&P’s equity research group has developed the STARS ranking system based on S&P analysts’ expectations of a stock’s potential to outperform its market’s benchmark on a total return basis, and to rise in price, over the coming year.

Each STARS stock is given a ranking from ´ (1 STAR) to ´´´´´ (5 STARS) by S&P’s equity analysts on the basis of qualitative and fundamental analysis of the stock’s growth potential. Stocks with ´´´´´ (5 STARS) and ´´´´ (4 STARS) are the highest ranked stocks in the system and are therefore expected to outperform their market and rise in price.

Key Features

This fund is available through all of Hansard’s regular premium and lump sum products and is exclusive to Hansard International.

The Stock Appreciation Ranking System (STARS) which was developed in 1986 is a global selection process. Standard & Poors produce reports based on analysis by sector specialists, economists all from there equity research teams. They look for more growth than value stocks.

From 1986 to today the average performance of 5* rated stocks by S&P is over 17% p.a. The S&P 500 over the same period has averaged at 9.36%

Using the S&P STARS system and other filtering techniques 25 stocks are chosen from 40% US , 40% Europe and 20% Asia .

Citigroup managed the portfolio and weightings and provide the 80% protection. The Portfolio is rebalanced every 6mths (June and Dec) to ensure that any changes in stock rankings and financial data are captured.

This is a perfect way to gain access to a real portfolio of the worlds best stocks with very limited downside. Chosen by the worlds No.1 rated Research Company and managed by Citigroup the leading global financial services company.

Why choose this Fund?

• Access to Standard & Poor’s award-winning equity research
• Access to a forward-looking methodology, which was jointly developed by Citigroup and Standard & Poor’s and aims to select a portfolio of stocks with the potential to outperform global equity markets
• Protection provided by Citigroup (AA—, S&P rated) - 80 % of the highest Net Asset Value of the Fund.
• Dynamic allocation between Equity and Cash
• Profit lock-in mechanism
• Dynamic Equity portfolio — rebalanced every six months
• Geographic and sector diversification
• Reduced volatility due to dynamic allocation of fund’s assets between Equity and Cash
• Daily subscriptions and redemptions
• No fixed-term or redemption penalty
• Exposure to a research-based portfolio of 25 global stocks (the Equity) which is rebalanced every six months
• Dynamic allocation of the Fund’s assets between Equity and Cash, to ensure continuous protection equal to 80 % of the Fund’s highest ever Net Asset Value (the Protected Level)
• 100 % initial allocation to Equity
• USD denominated

Standard & Poor’s Equity Research,

In 2006, Standard & Poor’s equity research analysts received 8 Best on the Street awards and Standard & Poor’s was ranked 1st independent research firm out of 280 participating equity research firms by the Wall Street Journal.

How The Fund Works

The Fund’s assets will be allocated between Equity and Cash. The allocation of the Fund’s assets between Equity and Cash is driven by Citigroup’s Dynamic Allocation and Protection Mechanism, which is designed to allow investors to participate in the rising Equity portfolio while protecting the principal in downward trends.

Throughout the Fund’s life, rebalancing rules will determine the allocation between Equity and Cash to ensure that 80 % of the Fund’s highest ever Net Asset Value (NAV) is always protected. The allocation is monitored on an ongoing daily basis. Some factors determining allocation: level of stock markets, market volatility, and expenses.

 

Principal Protection is achieved through a dynamic allocation of the Fund’s assets between Equity and Cash

Citigroup S&P Global STARS: Equity Portfolio Construction

Jointly developed by Citigroup and S&P, Global STARS is an advanced stock selection mechanism. Using Standard & Poors equity research as a starting point, Global STARS applies a number of additional stock screening filters to ensure liquidity as well as sector and regional diversification.

Stocks are subsequently re-ranked based on historical financial data to identify stocks with the highest growth potential (see below).

A portfolio of 25 stocks is selected from across Europe, the US and Asia allocating solely to those stocks identified as having the highest absolute and relative performance potential. Rebalancing of the portfolio is conducted every six months in June and December following the same methodology to ensure that any changes in stock rankings and financial data are captured. Stocks in the portfolio are equally weighted on rebalancing dates to ensure ongoing diversification across small and large cap stocks and to maintain exposure only to those stocks with the highest growth potential.
 

How To Participate In The Citigroup S&P Global STARS Fund

The fund can be accessed by Hansard International's Capital Builder plan.

Capital Builder is recognised as one of the leading offshore savings plans that offers a very competitive charging structure allied to an extensive range of funds from which to choose.

Please contact us to discuss your interest in this fund and we will advise how best to effect your investment.

Citigroup S&P Global STARS Fund Performance

Please click here and download the latest fund performance bulletin which details not only the Global Equity Capital Protector fund but also the complete range of Hansard International funds.