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NDF Administration brings out income & growth bond

NDF Administration has established the income and growth plan, a guaranteed equity bond that is linked to the FTSE100 index for three years and two months.

The plan, which is also available as an Isa or Pep transfer, offers investors a choice of 9 per cent income a year, 0.7 per cent income a month or growth of up to 30 per cent at the end of the term. Investors get all their original capital returned at the end of the term, provided the index does not fall by more than 20 per cent during the term. If it does, investors will still get their original capital back where it recovers to at least the initial level by the end of the term.

If the index falls by between 20 and 30 per cent without recovering to the starting level, investors will lose 1 per cent of their capital for every 1 per cent fall in the index. Where the index falls by more than 30 per cent without recovering to the starting level by the end of the term, capital will be reduced by 2 per cent for every 1 per cent fall in the index for the income options. For the growth option, capital will be reduced by 2.6 per cent for each 1 per cent fall in the index.

This bond sits at the riskier end of the guaranteed equity bond spectrum because of its relatively short term and its lack of a full capital guarantee. It would be suitable only for investors who could afford to lose their capital if the stockmarket does not perform well.


&#39Cut the jargon of complicated and long key features documents&#39

Key feature documents are in need of dramatic simplification as in their current complicated format they serve no purpose whatsoever claims Sandler.He is advocating KFDs which do not include much of the current jargon and that are significantly reduced in length.The suggestion has been greeted positively by IFAs who agree with Sandler&#39s assertion that KFDs […]

Warning that reviews flood will sink savings confidence

The head of the financial services practitioner panel is warning the Treasury and the FSA that the consequence of the present multitude of reviews could be damage to the economy and savings confidence.Panel chairman Donald Brydon says too many reviews could distract management at a time when the industry is already being squeezed by falling […]

FSA supports direction of Sandler report

The FSA says it supports the Sandler report&#39s recommendations on products, regulation and consumer education, and will publish an outline programme in September for the simplification of the sales regime.The regulator claims Sandler&#39s suggestions of a simplifies regulatory regime for the sale of stakeholder is in line with its own proposals for depolarisation in CP121.FSA […]

Outside Edge: Michael Owen

The last thing markets needed when they were already reeling from the Enron disaster was WorldCom and there may be more creative accounting scandals in the pipeline. What does it mean for the investing public and professionals alike and can we learn any lessons?Well, Andersen&#39s reputation is in tatters and the auditing process in general […]

Inheritance tax when it is relevant

Neil Jones is Technical Support Manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. A trust can offer significant advantages when an individual is […]


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