How do you calculate the current payout target of the Endowus IncomeUp model portfolios? (HK)

Current payout target p.a.
Current payout target is an estimated amount of money you will receive on a regular basis per annum from your IncomeUp model portfolio. This estimated payout is calculated based on the target fixed and variable coupons/dividends of the underlying funds in the portfolio.

For example, if you invest HK$1,000,000 and the portfolio’s current payout target p.a. range is 4.0% to 5.0% p.a., you’ll receive an estimated HK$40,000 to S$50,000  income throughout the year.

Max Drawdown and Historical Loss

While our IncomeUp model portfolios are created with the best-in-class fund management companies in the income investing space, there is still risk involved and investments are not capital guaranteed. 

Understanding the historical maximum loss of the respective portfolio can be a good way to assess whether the portfolio is suitable for your risk appetite. Historical maximum loss (“drawdown”) is the fall from the peak (the highest point) to trough (the lowest point) in investment value, based on historical performance. 

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