Premier Fund Managers and NDF have both added two structured products to their ranges offering prote...
Premier Fund Managers and NDF have both added two structured products to their ranges offering protected returns linked to the FTSE 100 and the Dow Jones Eurostoxx 50 Index.
Premier's Protected Growth plan gives 100% return of the original investment, plus 100% of the growth in the FTSE 100 over a six-year period, based on the average level during the final 12 months.
There are also early maturity triggers at three, four and five years, which will limit the capital growth available to investors. The plan matures early if the index rises by more than 21% after three years, 36% after four or 55% after five, giving annual returns of 7%, 9% and 11% respectively.
The Premier Extra Income Plan gives investors annual income of 7% or 1.65% quarterly, with a growth option of 38% over a five-year period. At maturity, 100% of the capital will be returned, providing the final value of the Eurostoxx 50 Index is as high, or higher, than its start value.
Investors will receive 100% of their capital at maturity unless the underlying index falls below 70% of its start value during the investment period and fails to recover to the start value by maturity. If this happens, capital will be reduced by 1% for every 1% fall in the index below the start value.
Both plans qualify for Isa investments and Isa and Pep transfers. The offer period on each runs from February 19 until April 21, with the cutoff for Isa and Pep transfers set as 14 April. The interest rate during the offer period is 4% per year before the start value date on 7 May.
NDF, which earlier this month launched its Protected Income Plan 1 and Double Growth Plan 1 funds, is to add second versions to these two products.
Like the first product, the Protected Income Plan 2 will offer 7% annual income for five years or 0.54% monthly income with the returns linked to the EuroStoxx 50 Index.
NDF will also offer investors an option of taking 6% annual income for five years or 0.47% monthly income, with returns linked to the FTSE 100.
Both options will repay capital in full unless the index to which they are linked falls 50% or more during the investment term and fails to recover to at least 50% of the start value.
The group is also launching a second Double Growth Plan, which offers investors a choice of fixed or variable growth with capital protected, providing the FTSE 100 does not fall more than 50%. Investors can opt for double the rise in the index over five-and-a-half years, subject to maximum maturity proceeds of 200% of the original investment.
Alternatively, they can go for 40% fixed growth over five-and-a-half years, to be paid unless the FTSE falls by more than 50%.
The Protected Income Plan 2 and Double Growth Plan 2 will launch on 10 March with an offer period running until 25 April.
The increase in minimum AE contributions has had little impact on opt-out rates - with cessations after April increasing by less than two percentage points, data from The Pensions Regulator (TPR) shows.
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