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Targeted Drawdown Strategy

Your clients might retire but their portfolio shouldn’t

A specialist mandate within our Discretionary Fund Management service, the Investec Targeted Drawdown Strategy (TDS) offers a more predictable, less volatile way for your clients to take an income in retirement. 

An innovative way to support your clients’ needs as part of your Centralised Retirement Proposition, TDS enables them to take a predetermined gross income over an agreed time period. This mitigates some of the risks caused by volatile markets, whilst investing the remainder of their portfolio for growth. 

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How Investec’s Targeted Drawdown Strategy works

  • How is this strategy different to other plans?

    Taking a predictable income in retirement is achieved by replacing some of the fixed-interest assets in a client’s portfolio with Investec’s Impala Bonds. These bonds offer a predictable return, with a known maturity date.

  • What are Impala Bonds?

    Impala Bonds are Investment Grade, zero-coupon bonds that would normally be outside the budgets of most private investors. They are tradable daily on the London Stock Exchange and, because they mature at a specific date with a known value, they are not subject to market volatility at that point.

  • How do they provide a predictable income?

    Impala Bonds are purchased at a price lower than their value at maturity, with the difference being made up by the interest earned on the investment.

How you and your clients can benefit from our Targeted Drawdown Strategy

  • Give your clients the best of both worlds

    TDS gives your clients the reassurance of a predictable income and reduced exposure to market risk on the one hand, whilst enabling them to invest the balance of their portfolio in growth assets on the other.

  • A simple proposition to sell

    Your clients will very quickly grasp the benefits of the strategy and what it can achieve for them. Existing clients already in drawdown can be easily migrated to TDS providing them with greater certainty of income.

  • Supports your Centralised Retirement Proposition

    TDS ticks a big compliance box enabling you to offer a Centralised Retirement Proposition by demonstrating you have taken reasonable steps to ensure your clients won’t run out of money in retirement.

Get in touch

You can send us a message, or request a call from your local business development director. Whatever support you need we’re here to help.

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Contact us today to find out how TDS could be helping you and your clients.

Useful Downloads

Brochures

Factsheets

Rate Card

Set Up Procedures

Brochures

An overview of Investec and the services that we offer, to help you and your clients
An introduction to Investec for your clients, providing information about the services that we offer
A detailed breakdown of how we manage investment mandates, and the asset allocation based on each risk profile

Factsheets

The Targeted Drawdown Strategy explained - enabling your clients to have greater certainty of income in retirement

Rate Card

Discretionary Fund Management charges and fees

Set Up Procedures

An explanation of our services and set-up procedures required to begin your new partnership with Investec

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Important information

To invest in Impala Bonds within the IW&I Targeted Drawdown Strategy, your client must accept the credit risks associated with corporate and sovereign bonds. Each bond is built using segregated assets that can be sold independently of one another in the event of an Investec default.
It is important that your clients are aware that the bond’s value will vary during its lifetime on a daily basis which will affect the amount they receive back if they encash the bond before maturity.
Note that the client’s pension portfolio will still hold other asset classes, so investment risk must be considered there too.
Investors should remember that the value of investments can go down as well as up.


Our UK regulators

Investec Bank plc (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered at 30 Gresham Street, London EC2V 7QP.
 
Investec Wealth & Investment Limited (Reg. no. 2122340) is authorised and regulated by the Financial Conduct Authority. Registered at 30 Gresham Street, London EC2V 7QN.