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Is TargetReturn For Me?
| Convergence | FAQs
If the questions on the left
describe you better than those on the right, then you should consider
allocating a portion of your portfolio to the TargetReturn
strategy.
The TargetReturn strategy may make sense
for high-net-worth individual investors (in both taxable and retirement/IRA
accounts), foundations and endowments.
Among individuals, the strategy will likely
work best for those who have already accumulated significant assets
and wish to devote a core portion of their holdings to a strategy
aimed solely at preserving and enhancing purchasing power. The TargetReturn
strategy provides a natural answer to this challenge.
Foundations and endowments typically have explicit annual spending
rates. In order to maintain the purchasing power of their annual
spending, they must achieve a rate of return at least equal to inflation
plus the spending rate—in other words, a target real return.
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