View more on these topics

NDF income fund offers guaranteed 31% growth

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.

Recommended

MCCB to probe big IFA firms&#39 mortgage sites

Investment manager Greig Middleton sponsored the Ladies Open ChampionshipHunter Chase Final at Uttoxeter last week. Director Stephen Clark says:“Point-to-point meetings offer tremendous entertainment in an informalsetting and reinforces our name in the private client and corporate financemarkets.”The Mortgage Code Compliance Board is planning to meet big IFA firms tocheck their websites and mortgage-sourcing software contain […]

Panorama failed to take in whole picture

What a pity about the BBC&#39s Panorama Mortgage Timebomb programme lastweek. I was expecting a serious in-depth analysis of endowment policies,about what percentage of them are likely to fail to repay the mortgage andan actuarial comparison between the total costs of endowment and repaymentmortgages.Instead, we were treated to a number of examples of the failure […]

Threadneedle offers support on the net

Threadneedle is launching an IFA advice and information website in a bid to take a lead in the online investment race.The new site offers several IFA services, including monthly and weeklymarket news, economic forecasts and price quotes for all unit trust andOeics in the UK.Threadneedle is one of a small group of major fund managers, […]

The five pillars of e-wisdom

There is a definite gap between e-commerce expectation and reality. Butthe reality is closer than you might think. The next five years promise themost significant revolution in retail finance distribution strategy.Change will be driven by the explosion in competition and the expectationof ever increasing levels of customer service, forcing retail financialservices institutions to accelerate the […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment