View more on these topics

NDF invests in second bonus plan

NDF Administration has introduced the extra bonus plan 2.

The plan is a guaranteed growth bond that has been aimed at investors who are looking to shelter any returns from capital gains tax and who are looking for short term growth over one year.

Extra bonus plan 2 will invest in a Dublin based investment company, which in turn will invest in the Dow Jones Eurostoxx 50 index.

There are two options to the plan. The first allows for 10 per cent growth over a 13-month time frame, while the second gives access to 12 per cent growth over the same period.

The two options also come with differing degrees of risk. If the 10 per cent option is taken then the Eurostoxx index can fall by up to 25 per cent before the capital invested is affected. Any fall below 25 per cent will see the capital reduced by two per cent for each one per cent fall in the index.

However if the 12 per cent option is taken then there is no safety net, and an investor could see their capital reduced if the index falls in value.

The extra bonus plan is similar in structure to the bond from Scottish Mutual. This product invests in the Nasdaq 100 index, with capital returned in full unless the index fall by more than 25 per cent over the three year term. However, the 13-month term of the NDF product makes it more vulnerable than the Scottish Mutual product to any fall in the index, as it might not recover in time.

Over a 13-month time period the Dow Jones Eurostoxx 50 index went from 4902 points on February 2, 2000 to 4103 points on March 2, 2001.


Lombard Odier sounds out Pacific

Lombard Odier has added the Pacific rim fund to its LO Invest UK range of offshore funds.Like the other funds in the range, this Luxemburg-based Sicav is a UK clone of a fund that is only available in Switzerland.As an emerging markets fund, the Pacific rim fund aims to provide growth by investing in large […]

IHT nil-rate band rises £8k to £242k

The Chancellor has increased the inheritance tax nil-rate band by £8,000 to £242,000. Brown says the move will result in 96 per cent of all estates in the UK not being charged any inheritance tax.

Charge of the pension brigade

The self-employed are set to face several new problems with the onset of stakeholder pensions. Currently, the self-employed make gross pension contributions and tax relief is obtained from the Inland Revenue. Under the new defined contribution scheme rules that come into effect on April 6, contributions – including those to stakeholder pensions – will be […]

Societies benefit as savers abandon converted B&B

Building societies performed strongly in the mortgage market in January as net advances rose to £717m from £683m in December, according to the Building Societies Association. The savings market was also strong, which the BSA attributes to customers of Bradford & Bingley abandoning the bank to return to mutuals following its conversion to plc status […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm