Mark Woodruff

Citi Australia has named Mark Woodruff as its new Head of Markets for Australia and New Zealand, following the announcement of Luke Randell’s retirement earlier this year.

In his newly appointed role, Woodruff will be responsible for developing and implementing regional product delivery strategies for the Australia and New Zealand business, while maintaining a strong risk management discipline and culture. Woodruff is currently Head of Investor Sales for Australia and New Zealand and will retain these responsibilities.

Commenting on the appointment, Citi Australia and New Zealand CEO, Marc Luet, said: “Mark joined Citi more than two-decades ago and has held a number of important senior leadership positions in Australia including Head of FX and Corporate Derivative Sales and most recently as Head of Investor Sales. In this role, Mark has consistently increased franchise revenue and market share, by driving key client segment initiatives, particularly across Superannuation Funds and Financial Intermediaries. Mark is a trusted and esteemed leader both internally and to our clients.”

Luke Randell has had a distinguished career with Citi, spanning more than three-decades, and has worked across Australasia, the Asia Pacific and EMEA regions in sales, structuring, research and capital markets.

“Luke has led our Markets and Securities Services business in Australia & New Zealand since 2017 where he has created a winning culture, achieved outstanding results, and evolved the business with new products and clients,” Mr Luet said. “We would like to thank Luke for his contribution to the franchise over the years and wish him all the best in his next endeavours.”

Citi’s Markets and Securities Services division provides products and solutions for corporates, institutional investors, and governments through underwriting, structuring and sales and trading across all asset classes, sectors and industries. It is one of the largest brokerages in Australia.

Woodruff’s appointment is subject to regulatory and compliance approvals.

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Citi Australia has launched an all-in-one global banking solution.

Citi Australia yesterday launched the Global Currency Account, an all-in-one global banking solution that combines the capabilities of a multi-currency bank account with that of a foreign currency debit card, giving convenience and control to the customer.

Ideal for investors, business executives and frequent travellers, the Global Currency Account lets account holders consolidate their foreign currency holdings in one place, with account details for up to 10 currencies.

The currencies are linked directly to a Citibank debit card – meaning users can switch between currencies instantly via their mobile app and pay like a local with their card when travelling. There are zero ATM fees when using local currency, reducing cost and hassle.

The currencies currently include the Australian Dollar, US Dollar, British Pound, Euro, Canadian Dollar, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Singapore Dollar and the Swiss Franc, and there is potential to expand the list based on customer demand.

Citi’s Consumer Bank CEO Alan Machet, said: “Whether, transferring money to family abroad, receiving international income, making repayments to investment properties offshore, or travelling overseas, dealing in foreign currency is a critical part of life for many Australians today.

“The Global Currency Account gives holders the ability to easily send, receive and exchange money 24/7. This means they have complete control of their money, no matter where they are in the world, via a convenient and cost-effective platform,” said Mr Machet.

Leveraging the Global Currency Account for international investments

Citi’s clients have increasingly turned to global opportunities to diversify their portfolios and increase their level of returns in recent years. Only two years ago, Citi customers split their assets at a ratio of 36% international and 64% domestic. Today, this has reversed, with 61% international and 39% domestic investment.

Citi’s Global Currency Account facilitates easy access to global investments, empowering investors to take advantage of favourable currency trends and see a consolidated view of all their currency holdings, in real time.

Furthermore, it removes prohibitive foreign currency fees to enable more Australian investors to seek the benefits of diversifying their global portfolio, providing more security and control over their transactions. Citi offers competitive variable interest rates as high as 2.25 per cent for those investing more than AUD 250,000, and narrower foreign exchange spreads.

“Australian investors face several challenges in generating local returns in 2018. Our housing market is challenged, the equity market is lagging behind offshore markets, the cash rate is low, and bond yields look more attractive in Europe and emerging markets,” said Mr Machet.

“Already we are seeing Citi’s investment clients take advantage of currency changes. In April 2018, we saw a 50% increase in the number of foreign exchange transactions on the previous year with the pickup in volatility.

“The Citi Global Currency Account is ideal for investors who are closely attuned to global events. Capitalising on growth opportunities that may not be apparent in Australia is made easy when you can swap currencies quickly and cost-effectively via the website or app,” he continued.

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• Improve existing products before creating new
• Focus on solutions which deliver targeted outcomes
• Human judgement a key enabler
• Third party administrators a partner for innovation

An annual, independent study released today by CREATE-Research, commissioned by Citi’s Global Transaction Services and Principal Global Investors, finds that while innovation is deemed to have produced mixed results over the last decade, asset owners have retained an appetite for innovation, but only where specific principles are met.

The report, entitled Investment Innovations, raising the bar, surveyed over 500 respondents from pension plans, asset managers, consultants, administrators and distributors from 30 countries with a combined AUM of over US$29 trillion. It asked respondents which financial innovations they believe have worked, which haven’t, what should be the main thrust of innovations over the next three years and what specific improvements and actions they want to see related to these innovations.

The headline findings cite 2008 as a watershed for financial innovation with many of the new products, asset classes, return enhancing tools and asset allocation techniques developed in preceding decades viewed as becoming increasingly fallible, as the financial crisis developed. This prompted a dangerous mismatch in expectations between asset managers, advisors and their clients. Now, client engagement is rising again and the report presents a call to action for asset managers and owners to work more closely together to add value in the innovation process, better aligning their interests and expectations for mutual benefit.

Prof. Amin Rajan, CEO of CREATE-Research and the study’s author, said:

“The global economy is still in a state of uncertainty and strong headwinds in the shape of financial regulation, scarcity of talent and revised client expectations are buffeting the industry. Against this backdrop, there has to be a clear line of sight between innovations and client needs. Asset owners will demand creative solutions which deliver tangible value. New products developed without such fundamentals and without clear client engagement will struggle to gain traction.”
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Key findings of the report include:
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• Some 35 innovations saw significant adoption in the last decade. 57% of respondents said that emerging markets equities delivered most value while leverage recorded the worst performance, according to 40% of respondents
• 50% of pension plans believe a switch from products to solutions will be a key driver of innovation over the next 3 years
• A mismatch exists between asset managers’ and clients’ expectations – 39% of the clients think further product innovation will deliver genuine value over the next three years versus 64% of the asset managers
• Lack of client engagement is viewed as a major cause of failed innovation: 73% of pension funds surveyed are only rarely/occasionally engaged when asset managers innovate their financial products
• 88% of asset managers foresee further product innovations over the next three years, although of these, 52% believe they will be incremental, improving existing innovations, rather than creating new ones

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Grant Forster, CEO of Principal Global Investors Australia, said: “The findings show that lack of client engagement is viewed by the industry as a major factor behind failed innovation. First and foremost, there should be a direct link between innovation and client need. That means building tailored investment solutions that are relevant and additive to clients’ business objectives, rather than creating copy cat products or those which rely on financial engineering. We believe that our multi-boutique model provides a strong platform to execute this strategy, enabling a deep knowledge of products combined with an ideas-centric, client driven approach.”
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The report finds that pension plans increasingly want to see an overlay of human insight, foresight and empathy in the investment process, as quant models can only deal with historical data. This is highlighted by the failure of existing risk models during the last two vicious bear markets.
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The report also highlights that product quality, better alignment and operational excellence will dictate the thrust of innovation in the near term. Asset managers intend to adopt more robust processes for promoting new ideas and stress-testing the resulting products. They also expect to rely more on their administrators in order to focus on their own core capabilities and continue an upward advance in the investment value chain.
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Neeraj Sahai, Global Head of Citi Securities and Fund Services, said: “Underpinning the drive for innovation is the need for ongoing operational excellence. The findings show that looking ahead over the next several years, market participants are focusing on becoming more efficient, reducing risk and modernising the back and middle office, in partnership with administrators. This drive will be a key differentiator for distinguishing the leaders and the laggards of the new era of innovation.”
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Click to download the full report –  Investment Innovations 2011

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