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NDF zooms in on dividends

NDF Administration has introduced the income plan, which offers a fixed rate of tax-free income in the first year.

This closed ended investment company has a term of six years and two months and is linked to the performance of the FTSE 100 index from the second year. Investors get their original capital returned in full at the end of the term, however the index has performed.

Investors can choose from an annual income option, a monthly income option and an accumulated income option which pays income at the end of the term.

The annual income option offers 6 per cent in the first year. From years two to six, income is linked to the dividends paid by the companies that make up the FTSE 100 index. These are added together each year and are measured against the previous year to produce a dividend yield. Investors get 2.12 times this dividend yield in year two and twice the dividend yield in years three to six.

Investors choosing the monthly income option get fixed income at 5.6 per cent a year, paid monthly. In year two they get 1.97 times the dividend yield and 1.85 times in subsequent years.

The accumulated income option pays 2.25 times the dividend yield at the end of the term, which could be useful for investors seeking growth.

The capital guarantee and fixed income for the first year are good features, but income levels may not be high if there is a repeat of current stockmarket turbulence during the term. Some investors may also be put off by the complicated way that income is calculated from year two onwards.


Healthcare 4 Life offers switch on same terms

PMI provider Healthcare 4 Life is offering a deal for corporate clients switching into its four-in-one policies from another provider to keep the same terms they have under their original plan. This type of business accounts for 50 to 80 per cent of the group PMI market. H4L says it is common for providers to […]

Leeds & Holbeck brings in no-ties tracker

Leeds & Holbeck Building Society has brought in the no-ties tracker mortgage.The mortgage will track the Bank of England base rate until September 1, 2004, and has a discount of 0.5 per cent from the base rate until March 1, 2002. This gives it a payable rate of 4.75 per cent. It is available for […]

Mercantile brings in new fixed rate

The Mercantile Building Society has introduced the two-year fixed rate mortgage.Available for loans of up to 80 per cent of valuation, the interest rate is fixed at 5.49 per cent until August 1, 2003. After the fixed rate period the mortgage will carry the Mercantile’s standard variable rate.There is a completion fee of £195 and […]

Gartmore&#39s AlphaGen Pictor fund tops $50m in first month

Investment house Gartmore has announced that its AlphaGen Pictor fund now tops the US $50m mark a month after launch. Managed by Chris Palmer and Seok Teoh, it is a non-directional long/short Pacific and emerging markets equity hedge fund and is the latest addition to Gartmore’s AlphaGen range. Its Japanese equity hedge fund Hokuto, launched […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]


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