View more on these topics

Product matters

I believe that the NDF growth kickout plan, which was launched in September, offers a potentially very attractive return of 11 per cent a year.

As is to be expected with NDF, the literature is very well produced and easy to understand, notwithstanding the complexity of the product.

On the upside, all returns are subject to capital gains tax, as opposed to income tax, which means that investors who do not utilise their capital gains tax allowance can receive all or part of the return tax-free and use their Isa allowance for something else. On the downside, there is limited capital protection. If the 50 per cent protection barrier is breached, there will be capital loss on a 1:1 basis. Furthermore, return of capital is linked to two indices – the FTSE 100 and the Nikkei 225. As return of capital is linked to the worst-performing index, this adds significantly to the risk.

Adviser remuneration of 3 per cent is in line with the market although some providers are now paying trail commission, for example, Keydata.

Although the headline rate is a real eye-catcher, we are not particularly keen on the product as if the 50 per cent protection barrier is breached, capital is not protected and return of capital is linked to the worst-performing index.

Colin Jackson is a director at Baronworth


Newcob means further RU64 delay

The FSA’s Newcob consultation has outlined a further delay to a decision on the future of RU64 until early next year as long as sufficient detail about personal accounts is known by then.

Potter doubts value of multi-asset funds

Credit Suisse Asset Management joint head of multi-manager Gary Potter has questioned the value of holding single-manager multi-asset portfolios within a fund of funds. One of the target markets for the recently launched King & Shaxson ethical balanced income fund, which applies a multi-asset approach to ethical investment, is multi-managers. But Potter, who runs a […]

Lacomp takes to the early stage

The Lacomp British enterprise Fund 7 is an enterprise investment scheme fund that will invest in unquoted companies at an early stage of their development.

HSBC International builds with Bric

HSBC International has brought out a capital-protected offshore Oeic that is linked to the performance of the DAX global Bric Index for five years.
Investors in this fund will receive a full capital return at the end of the term regardless of the performance of the index, plus a minimum return of 9 per cent growth.

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


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