View more on these topics

Number nne from NDF

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, 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.

In this case, the capital will be reduced by 2 per cent for each 1 per cent fall in the index if the income options are chosen. Investors who choose the growth option will suffer a reduction of 2.68 per cent for every 1 per cent fall in the index.

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 when taking the full investment term into consideration.


FSA probes IFAs justifying GPPs over stakeholder

The FSA is examining IFA letters justifying group personal pension recommendations under the “at least as suitable as stakeholder” rule amid concerns that advisers are not giving satisfactory reasons for shunning stakeholder.Speaking at a Money Marketing conference in London this week, FSA group manager (investment business policy) Norman Digance said there was a question mark […]

&#39Polarisation not best for consumers&#39

There is a strong case for multi-ties because polarisation is not the best option for consumers, according to M&G sales and marketing director Jeffrey Mushens.At the Pep & Isa Managers Association Annual Conference in London last week, Mushens said providers, consumers, tied salesforces and some IFAs would benefit from multi-ties.He questioned whether polarisation was in […]

Decisive action will bring back growth

As expected, the terrorist attacks of September 11 continue to dominate the agenda and Chancellor Gordon Brown&#39s pre-Budget report speech in Parliament on Tuesday was no exception.A great deal of emphasis was placed on economic growth in the speech and, despite lowering forecasts for 2002, the figures still look encouraging, with UK growth set to […]

&#39Half of all income funds fail on yields&#39

Almost half of equity income funds are falling foul of Autif sector definitions by stating no intention to increase their funds&#39 yields.The findings, revealed by investment selection service Shouts, show that 34 of the 70 equity income funds which have a five-year track record do not aim to grow their yield while only 20 per […]


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