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NDF creates house bond

NDF Administration has established the house price secure growth plan, a guaranteed equity bond that is linked to the Halifax House Prices index.

The product is also available as an Isa and aims to give investors exposure to the property market without investors having to invest directly.

Investors receive 100 per cent of the growth in the index and also get their original capital back at the end of the five-year term. This is an advantage for cautious investors that they would not have if they invested directly in residential property.

To calculate the returns, the level of the Halifax House Prices Index for July 2002 is recorded and compared with an average of the monthly levels between February 2007 and January 2008.

House prices have been increasing rapidly in recent years, while the stockmarkets that some guaranteed equity bonds are linked to have been moving in the opposite direction. This could make the NDF bond more attractive to cautious investors who want to increase their chances of ending up with more than just their original capital.

Newcastle Building Society&#39s guaranteed property bond is a similar product that also follows the Halifax House Prices Index for five years and guarantees the return of the original capital whatever happens. Returns are calculated in the same way as the NDF product, but the Newcastle bond offers higher potential returns of 120 per cent of any growth in the index.


Abbey goes for eighth issue

Abbey National has introduced safety plus growth 8, a guaranteed equity bond that provides minimum growth of 20 per cent and maximum growth of 55 per cent.The bond is linked to the FTSE 100 index through a Dublin-based company called Quaich Investments 7 and there is also an Isa version of the product. Both versions […]

Pickering proposes new kind of regulator

The Government-commissioned pensions review by Alan Pickering is proposing a new kind of regulator which would supercede the Occupational Pensions Regulatory Authority.The new body – initially called the NKR – would provide advice on codes of practice and have the authority to intervene in schemes at an early stage if it believes there is reason […]

ABI welcomes Pickering proposals

The Association of British Insurers has welcomed Pickering&#39s report on pensions simplification, claiming that with the Sandler review, it will provide a good platform from which to close the savings gap.It says much of Pickering&#39s recommendations reflect its own views that there are too many types of private pensions, and that customers need clearer and […]

KPMG analysis of 2001 FSA returns

Following the publication of the 2001 FSA returns, we can now take the most up to date look possible at the published financial strength of the major UK with-profits companies. The recent turmoil in the worldwide equity markets has given rise to much media comment on the solvency and financial strength of these companies. It […]


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