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NDF reaches 10th plan

NDF Administration has unveiled the ninth tranche of its extra income and growth plan, which is linked to the performance of the Eurostoxx 50 index over a term of three years and two months.

This guaranteed equity bond offers investors an annual income of 10.25 per cent a year, quarterly income of 2.35 per cent or a growth option of 34 per cent. The original capital is returned to investors if the Eurostoxx 50 index does not fall by more than 20 per cent during the term. If it does, but manages to recover by the end of the term, the capital will still be returned to the investor.

However, where it falls by between 20 per cent and 30 per cent during the term and fails to recover by the end, the capital will be reduced by 1 per cent for every 1 per cent fall in the index. Greater capital erosion will occur for falls of more than 30 per cent where the index does not recover to its initial level.

Although this product offers some degree of capital protection, it is complicated and is suitable for sophisticated investors who are able to accept some risk to their capital. Another drawback is that the income options are paid over three years, when the actual term is two months longer. No payment is made during those two months, so the headline rates work out lower across the full investment term.


FSA tells firms to be more open on WP

The FSA has published the fourth issues paper in its review of the with-profits industry. It calls on life offices to be more explicit to consumers about the discretion they use in running with-profits funds. In the paper, Discretion and Fairness in With-Profits Policies, managing director John Tiner says consumers would be better served if […]

NDF Administration – Extra Income and Growth Plan 10

Monday, February 18, 2002.Type: Guaranteed equity bondAim: Growth and income linked to the Eurostoxx 50 indexMinimum-maximum investment: £10,000-£1m, Isa minimum£7,000Term: Three years and two monthsGuarantee: Capital returned in full at end of term provided index doesnot fall by more than 20%Return: 10% a year or 33% at end of termClosing date: April 5, 2002Commission: Initial […]

IFAP service will aid deaf and blind

Deaf and blind consumers will be able to access independent financial advice through a new service from IFA Promotion.It will produce consumer literature, including brochures and guides, in Braille, audiotape or large-print format.IFAP has also set up a freefone mini-com number for deaf people to communicate directly. The mini-com service enables deaf people to send […]

Focus system to speed up Skandia bond applications

IFAs using Skandia&#39s extra-net can complete investment bond applications electronically following the implementation of a system from Focus Solutions.The Goal technology system allows product providers to offer intermediaries and consumers online applications without needing additional software. It will go live to 8,000 registered IFAs in March.Skandia is the first provider to use the technology on […]


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