FTM Class D+ is perfect for investors wanting to generate cashflow on a quarterly basis to supplement their income needs as it targets 10% per annum with simple interest of 2.5% being paid out quarterly. The way it works is that shares are purchased at $100 and always remain at $100 but pay out $2.50 per share every quarter which totals $10 per year.
The investment strategy and philosophy is similar to the investment strategy of FTM Class A which has won 8 awards in 7 years. FTM Class A has achieved an annualized compound return of 8.82% which would equate to 11.53% (80.73% / 7 = 11.53%) simple interest annualized over the 7 years.
However, in the case of D+ there is no cash component except for the quarterly payments. These are paid out instead of rolled and reinvested and as such the investment requires a 2-year lock in.
However, an investor still retains the ability to use their own existing bank account but the cost of the quarterly telegraphic transfer will be deducted from the amount remitted each quarter.