NDF is launching a protected Dublin Isa offering a 10.05% annual income or 30.3% growth after three ...
NDF is launching a protected Dublin Isa offering a 10.05% annual income or 30.3% growth after three years.
Extra Income and Growth Plan 5, a Dublin listed company, is linked to the Dow Jones Euro Stoxx Index and guarantees a return of initial investment, unless the index falls by more than 15% over the investment term.
The scheme is asset-backed by Abbey National Treasury Services, which has a contractual relationship with the Dublin company, and is not directly connected with NDF.
The product is available for this year's Isa allowance and is also available for Pep or Isa transfers. Alternatively, investments can be made directly in the company's shares.
The investment period will open on 6 December 2000 and close on 31 January 2001, subject to demand.
Investments will mature on 21 May 2004, after a period of three years and 16 weeks. There is also a quarterly income option of 2.27%.
Charges are built into the structure of the product and there is 3% initial commission available to intermediaries. The minimum investment is £7,000.
Returns are dependent on the performance of the Euro Stoxx, an index of 50 leading blue chips on the Continent, although investors can still receive their returns even if the index falls.
The product offers the downside protection of full capital return as long as the index does not fall more than 15% and if the index recovers from a 15% fall before the end of the term, investors get their capital back.
Antony Stack, group managing director at NDF, said: "We have back-tested the index and it has never gone down this amount over a three year period."
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