NDF income fund offers guaranteed 31% growth
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NDF Administration is sett-ing up a structured income fund, sold
exclusively through IFAs, which guarantees investor 31 per cent growth over
three years.
The fund is the third in a series which the company hopes will increase
its portfolio among the IFA sector.
NDF describes itself as an independent but wholly owned subsidiary of
Abbey National.
It invests in the top 50 companies listed on European stockmarkets.
As long as the market does not fall below 75 per cent of the initial
level, investors will get back 100 per cent of their capital plus the 31
per cent growth.
If the index drops by 24 points, investors do not lose any capital.
The drawback is that, ifthe market rises more than31 per cent, gains are
capped.
The product will pay 10.25 per cent annually over the three-year life of
the bond or 2.37 per cent quarterly.
Minimum investment is £10,000.
NDF Administration expects most of the money to come from new cash but its
aim is to take advantage of the millions of pounds it estimates are held in
Peps.
Managing director Antony Stack says: "We believe that the combination of
bene-fits offered by the extra income and growth plan are hard to beat.
"We have been able to negotiate the best possible terms for this product.
No comparable product has ever achieved such a rating."
There are no initial or management charges on the fund.
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