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
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.
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 […]
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 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.
By Ali Unwin, chief technology officer & fund manager, Neptune Artificial intelligence, driverless cars, big data. As technological advancements – and disruption – increasingly dominate headlines, Ali Unwin sets out six key themes he is watching in 2017. Read more Important Information Investment risks Neptune funds may have a high historic volatility rating and past performance […]
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