Citi Wealth Outlook 2024 - At a Glance

Unstoppable trends are changing the world Unstoppable Trends are long-term phenomena that are transforming how we live and do business. We seek portfolio exposure to these powerful forces. AI-propelled digitization We expect 2024 to see major AI buildout amid easier financial conditions. We favor semiconductor equipment, robotics, drug discovery and cybersecurity equities How OPEC is fueling the sustainable energy transition By boosting oil prices, the world’s most powerful energy cartel is incentivizing the sustainable energy transition. We seek near-term income fromWestern traditional energy related firms; copper related investments vital to the transition; financially robust green energy firms longer term. Increasing longevity and healthcare innovation As human aging and technological advances persist we identify attractively valued healthcare investments such as medical technology and tools firms and value-based care providers that have underperformed pharmaceuticals. G2 polarization: The global technology industry As global tech supply chains bifurcate, we build exposure to both sides’ technological champions; agile supply chain fragmentation beneficiaries, with many in the likes of Vietnam and Mexico; US, Japanese and European robotics and AI- powered logistics suppliers; and industrial real estate trusts owning factories and warehouses both sides of the Atlantic. S&P 500 Consensus EPS by Sector 2 Year-over-Year Energy Materials Health Care Real Estate Financials S&P 500 Consumer Staples Industrials Info Tech Utilities Consumer Discr. Comm Svcs 2023 Consensus EPS (%) 2024 Consensus EPS (%) -30% -20% -10% 0% 10% 20% Watchlist Is your portfolio ready for the big reset? For current clients, your personalized Wealth Outlook Watchlist compares your portfolio to a reference allocation. And our Global Investment Lab’s range of tools can highlight other potential opportunities. Please request your personalized report from your relationship team. 2 1 Source: Citi Global Wealth Allocation Team. Strategic Return Estimates (SREs) for 2024 based on data as of October 2023, prior Strategic Return Estimates for 2023 (based on data from October 2022) and 2022 (based on data as of October 2021). Returns estimated in US Dollars. All estimates are expressions of opinion and are subject to change without notice and are not intended to be a guarantee of future events. Strategic Return Estimates are no guarantee of future performance. Past performance is no guarantee of future returns. Strategic Return Estimates based on indices are Citi Global Wealth’s forecast of returns for specific asset classes (to which the index belongs) over a 10-year time horizon. Indexes are used to proxy for each asset class. The forecast for each specific asset class is made using a proprietary methodology that is appropriate for that asset class. Equity asset classes utilize a proprietary forecasting methodology based on the assumption that equity valuations revert to their long-term trend over time. The methodology is built around specific valuation measures that require several stages of calculation. Assumptions on the projected growth of earnings and dividends are additionally applied to calculate the SRE of the equity asset class. Fixed Income asset class forecasts use a proprietary forecastingmethodology that is based on current yield levels. Other asset classes utilize other specific forecasting methodologies. SRE do not reflect the deduction of client fees and expenses. Past performance is not indicative of future results. Future rates of return cannot be predicted with certainty. Investments that pay higher rates of return are often subject to higher risk and greater potential loss in an extreme scenario. The actual rate of return on investments can vary widely. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index. All SRE information shown above is hypothetical not the actual performance of any client account. Hypothetical information reflects the application of a model methodology and selection of securities in hindsight. No hypothetical record can completely account for the impact of financial risk in actual trading. 2 Source: Bloomberg and Haver as of November 16, 2023. All forecasts are expressions of opinion and are subject to change without notice and are not intended to be a guarantee of future events. Past performance is not indicative of future returns. For illustrative purposes only. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only and do not represent the performance of any specific investment. Index returns do not include any expenses, fees or sales charges, which would lower performance. Past performance is no guarantee of future results. Real results may vary.