There are so many income products, but which one delivers a higher potential return?
The Enhanced Distribution retirement investment series offers a new source of income – the R share class†.
The R share class† has two distinct income-paying sources:
- Traditional monthly dividends that are based on your portfolio.
- An additional distribution yield of 2.5% p.a.1 that we systematically withdraw from your realised capital gains and/or capital.
Both sources work together to provide with a potentially higher monthly income and improved cash flow.
(The distribution amount is not guaranteed. Distribution may be paid out of capital. Refer to Important Note 2.)
A higher monthly income – systematic capital withdrawal plus traditional dividends
By investing for the longer term, we aim to pursue a higher potential yield, along with more stable and more predictable capital gains. With an additional monthly distribution income, you will have extra money to spend on other retirement purposes. What’s more, since capital is used to pay monthly dividends, its positive value will gradually decrease. In turn, this helps to reduce market exposure, withstand periods of volatility, and protect against downturns in share prices.
R share class† – Hypothetical Numerical Example
What will investors receive every month?