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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.
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
The people we deal with are very professional, fantastic in front of clients and proactive.
Adviser, South East
Your hard-earned reputation is in safe hands
When you partner with Investec you’ll be working with one of the UK’s most reputable investment management companies.
Five-star rating for our Bespoke Discretionary Fund Management service
Gold rating for our Discretionary Fund Management service
Asset Risk Consultants (ARC) 3D Award for our commitment to transparency, engagement and integrity.
Contact us today to find out how TDS could be helping you and your clients.