Legal & General reveals its latest “kick out” plan with number six in the Early Bonus series.

24 April 2012

David Beard
Business Development Manager

Early Bonus Plan 6 offers a final bonus payment of 54% and includes a kick out feature, which means that investors may receive their capital, plus a bonus payment, at any one of five set trigger points prior to the end of the six year term (27 June 2018) - see early bonus payment table below.

The Plan is available for investment over a seven week period from Monday 23 April until Friday 8 June 2012.  

David Beard, Legal & General’s Business Development Manager, Platforms & Distribution said, “Once again our Early Bonus series is offering investors the potential for their investment to outstrip inflation combined with the flexibility to access their capital if stock market growth picks up strongly. There are five opportunities for the kick out feature to trigger an early payment. Investors are also assured of the return of their original investment unless the FTSE 100 Index on the 27 June 2018, the maturity date, has fallen by 50% or more of the starting index level on 27 June 2012. This provides protection against a possible slow down in the economy, which could stall any FTSE 100 Index growth.” 

The Plan offers repayment of capital plus a bonus as long as the final level of the FTSE 100 Index is equal to, or better than, the initial FTSE 100 Index level at the investment start date (or strike date), provided the investment is held until maturity and the early bonus payment is not triggered.

Early bonus payment
The early bonus payment feature will be activated if the FTSE 100 Index is equal to, or better than, the initial index level at any of the anniversaries. If this happens the Plan will close and pay a set bonus as shown in the table:

Early bonus payment

If the early bonus payment feature is activated, the investment will close and there is no option for the investment to continue.

Capital is not protected with this Plan. There is the potential that some or all of the original investment may be lost if the FTSE 100 Index has fallen by 50% or more (that is 50% - 100%) of its starting level at the end of the six year term. The original capital invested will be reduced by 1% for each 1% that the final level of the FTSE 100 Index is below its starting level. So, if the FTSE 100 Index is 60% less than it’s starting level, investors will receive 60% less than they invested.

The minimum investment is £3,000. Investors can invest up to £11,280 in a stocks and shares ISA for the 2012/2013 tax year. There is no maximum for ISA transfers. The last date for ISA transfers is 25 May 2012 to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 8 June 2012.

Commission is 3% of the sum invested. Full details for this product are available on the Legal & General dedicated adviser website www.landgstructuredproducts.com.

Advisers can also contact Adviser Direct on 0845 273 0008 (Lines are open from 9am to 5pm Monday to Friday. We may record and monitor calls. Call charges will vary).  Or e-mail structured.team@landg.com

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

1. The contract start date is 27 June 2012 and the end of the fixed term is 27 June 2018.
2. This plan is not suitable for customers who may need to access their money before the end of the six year term or who may be seeking a definite return, and are not prepared to accept the risk that they may lose some or all of their investment.
3. The growth of the FTSE 100 Index will be measured using the initial level of the Index at close of business on the start date and the final level of the Index on the maturity date and on each anniversary.
4. The investment should be held until maturity but can be encashed or, if held as an ISA, transferred to another ISA provider at any time. If this happens the investor may get back less than they originally invested.
5. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc rated A+ Standard & Poors). In the event that these entities become insolvent and therefore unable to meet their commitments, the investor could lose some or all of their original investment and any applicable bonus. Source http://www.aboutsantander.co.uk/investors/credit-ratings.aspx

This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.

For more information please contact: