View more on these topics

Unique offering from NDF

NDF Administration has introduced the NDF income plan, a capital-protected bond linked to the performance of the Dow Jones Eurostoxx 50 index.

The bond has a four-year term and will provide investors with income at the rate of 6.5 per cent a year or 1.55 per cent a quarter.

Investors will get a full capital return at the end of the term provided that the index does not end up lower than its initial value by the end of the term. If it does fall below the starting level, investors will lose 1 per cent for every 1 per cent fall in the index.

NDF timed the launch of this product with the maturity of a similar income-producing product from AIG, enabling investors in that product to reinvest in a similar vehicle. Equally, NDF feels the plan will be useful to new investors looking for income.

According to the product database on the Structured Retail Products website, there are currently no income producing structured products like this, Some products produce income alongside growth through a combination of a guaranteed equity bond and a deposit account, but these do not provide a good comparison with the NDF product.

The main drawback of the NDF product is that there is no cushion if the index falls – even if it falls by 1 per cent, investors will lose 1 per cent of their capital. But this may be inevitable for a pure income product in the current climate.

The only other alternative for investors currently seeking income from a bond product is Keydatas secure income bond, which has a five-year term. This offers a choice of 7.5 per cent income a year, 1.875% income a quarter which are both higher than the NDF product or a growth option of 43.5 per cent at the end of the term. However, this product is linked to maturing life insurance policies, which some investors may not like.


Leading figures add their voices to campaign

IFA Kevin Evans says: “I totally support the campaign. An end must be brought to the sham of non-advice protection sales via supermarkets.” CBK principal Peter Chadborn says: “Unless advice is sought, a trend is set of a false sense of security.” Life Policies Direct managing director Jason King says: “We have no problem as […]

Swallow the humbug

It’s time to seize back the pension agenda from the Government


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 thought leadership.

    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