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Citi Global Wealth GLoSSArY | | 106 Investments Bloomberg. The Index is overseen by SIFMA’s Municipal Swap Index same direction all of the time. A correlation of -1 implies perfect SPAC, short for Special Purpose Acquisition Company, also known Committee. negative correlation, such that two assets or asset classes move in as a “blank check company”, is a shell corporation listed on a stock the opposite direction to each other all the time. A correlation of 0 exchange with the purpose of acquiring a private company, thereby Solactive e-commerce Index tracks the price movements in shares implies zero correlation, such that there is no relationship between making it public without going through the traditional initial public of companies which are active in the field of e-commerce. This may the movements in the two over time. offering process. include companies that operate e-commerce platforms, provide e-commerce software, analytics or services, and/or primarily sell Digital commerce involves transactions conducted online to purchase Strategic Return Estimates or SREs are based on Citi Private Bank’s goods and services online and generate the majority of their overall goods and services. Digital remittances are funds sent from one forecast of returns for specific asset classes (to which the index revenue from online retail. person to another over the internet, typically across borders. belongs) over a 10-year time horizon. The forecast for each specific asset class is made using a proprietary methodology based on the Solactive Social Media Index tracks the price movements in shares of EU or the European Union is a political and economic union of 27 assumption that equity valuations revert to their long-term trend companies which are active in the social media industry, including member states in Europe. over time. companies that provide social networking, file sharing, and other web-based media applications. A maximum of 50 components are Eurodollar futures and options are market tools for traders to included and weighted according to freefloat market capitalization. express views on future interest rate moves. The index is calculated as a total return index in US dollars. Fed funds rate or the effective federal funds rate (EFFR) is VIX or the Chicago Board Options Exchange (CBOE) Volatility Index, is calculated as a volume-weighted median of overnight federal a real-time index representing the market’s expectation of 30-day funds transactions reported in the US FR 2420 Report of Selected forward-looking volatility, derived from the price inputs of the S&P Money Market Rates. The federal funds market consists of domestic 500 index options. unsecured borrowings in US dollars by depository institutions from other depository institutions and certain other entities, primarily OTHER TERMINOLOGY: government-sponsored enterprises. Adaptive Valuations Strategies or AVS is Citi Private Bank’s own Internal Rate of Return or IRR is used to measure the profitability strategic asset allocation methodology. It determines the suitable of potential investments. It is defined as the discount rate at which long-term mix of assets for each client’s investment portfolio. the net present value (NPV) of all cash flows from an investment are equal to zero. This measure of return takes into consideration the Assets Under Management or AUM are the total market value of the time value of money and allows for comparison with projected rates investments that a person or entity handles on behalf of investors. of return on other investments. Correlation is a statistical measure of how two assets or asset Mobile POS payments are payments made at the point of sale but classes move in relation to one another. Correlation is measured facilitated via mobile devices like smart phones. on a scale of 1 to -1. A correlation of 1 implies perfect positive Sharpe ratio is a measure of risk-adjusted return, expressed as correlation, meaning that two assets or asset classes move in the excess return per unit of deviation, typically referred to as risk.

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