NDF product sees dampened FTSE swings

Offered as an income plan, the product intends to pay a minimum dividend of 3% for each annual period over a term of six years, but will pay up to 9% in each period if the FTSE 100 does not swing more than 10% up or down in any one year period. A new strike will be set at the start of each period. Changes in the index greater than 10% in any 12-month period - termed a "annual range trigger event" - will see payouts limited to the 3% rate – equivalent to 5% gross if the investment is done through a wrapper such as an Isa or Pep. Since 1 February 1999, the FTSE has made gains or losses ...