Legal & General launches the tenth plan in its FTSE growth series.
13 May 2011
FTSE® Growth Plan 10 offers a bonus of 45% as long as the final FTSE 100 Index level is equal to, or better than, the initial FTSE 100 Index level at the investment start date and provided the plan is held until maturity, which is 14 July 2016.
Legal & General Savings’ Head of Business Development, James Harrington said, “With the prospect of continuing low interest rates, the ‘soft protection’ or capital at risk product market is attracting investors who, for an element of their portfolio, are seeking potentially higher returns than they would be able to achieve through cash based investment alone. This new breed of more cautious investor is aware of issues such as counterparty risk and is prepared to accept part of the risk of investment in equities, through a link to a recognised index such as the FTSE 100 Index, in return for potential growth that is linked closer to the performance of equities than it is to cash”
FTSE® Growth Plan 10 will be available for investment until Friday 24 June.
The investment is structured to offer investors a bonus of 45% if the Final Index Level1 at the maturity date (14 July 2016) is at or above the Initial Index Level1 (14 July 2011). If the Final Index Level1 at the maturity date has fallen by less than 50 per cent of the Initial Index Level1 investors get their original investment back but no bonus.
There is the potential that some or all of the original investment may be lost - If the Final Index Level1 at the maturity date has fallen by 50 per cent or more of the Initial Index Level1 investors will get back less than they originally invested and would lose 1 per cent of their money for every 1 per cent the FTSE 100 Index is lower than its starting level.
This plan is not suitable for investors unable to remain invested for the full fixed term period and capital is not protected with this plan. This investment does not take account of dividends that would be available through holding shares directly in the companies that make up the FTSE 100 Index.
The minimum investment is £3,000 and the investment is available as a stocks and shares ISA, ISA transfer or through direct investment (the closing date for ISA transfer applications is 10 June to allow time for completion of transfer before the offer close date).
For new ISA applications clients can invest up to £10,680 for the 2011/2012 tax year. There is no limit on ISA transfers.
Commission is up to 3 per cent of the sum invested. Full details of FTSE® Growth Plan 10 are available on Legal & General’s dedicated adviser website,
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 email email@example.com
Note : The Initial Index Level is the closing level of the Index on the start date of investment, which is 14 July 2011 and the Final Index Level is the closing level of the Index at the end of the fixed term, which is 14 July 2016.
Notes to editors
- The investment must be held for the full five years to benefit from the potential return. If cashed in before the maturity date, which is 14 July 2016, investors may get back substantially less than the original amount invested.
- Unless the performance of the investment meets or exceeds the rate of inflation, the real value of the investment will fall.
- The investment is managed and administered by Legal & General (Portfolio Management Services) Limited and the securities invested in are issued by HSBC Bank plc, who are rated AA by Standard & Poor’s. Capital and growth are reliant on HSBC Bank plc, as issuer of securities, paying what they owe at the end of the investment term.
- The Offer Period is Tuesday 3 May to Friday 24 June 2011 (subject to change and early termination at the discretion of Legal & General and HSBC Bank plc according to market movements and market conditions, by giving 24 hours notice).
- A pre–investment interest rate of 0.87% gross/AER will be paid on investments from the beginning of the offer period up to and including Monday 11 July 2011. AER is the Annual Equivalent Rate and illustrates what the interest rate would be if the interest was paid and compounded once each year. The gross rate is the rate payable before deduction of tax.
- Charges will not exceed 4.4% of the initial investment and have been taken account of when calculating the returns shown. No further charges or fees will be levied during the term unless as a result of significant tax or regulatory change.
- This plan is not suitable for customers who may need to access their money before the five year maturity or who may be seeking a definite return.
- This investment does not invest directly into the companies that make up the FTSE 100 Index and so no dividend income is received.
The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2010, we were responsible for investing £365 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
FTSE® Growth Plan 10 is provided by Legal & General (Portfolio Management Services) Limited.
For more information please contact:
PR Manager Savings
t: +44 (0) 1737 375365
m: +44 (0) 7802 503917
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.