Legal & General launches 3 Year Growth Plan.
03 September 2012
3 Year Growth Plan 1, which pays a bonus of 31% gross (9.42% gross/AER), is available for investment over an eight week period from Tuesday 28 August until Friday 19 October 2012.
The investment is structured to offer investors the return of their initial capital plus a bonus if the FTSE 100 Index level at the maturity date (6 November 2015) is the same as, or above, the initial index level on the strike date (6 November 2012). However, if the index level at the maturity date has fallen by 50% or more of its starting level, between 50% and 100% of the original investment will be lost*.
David Beard, Legal & General’s Business Development Manager, Platforms and Distribution said; “Structured investments are growing in popularity, driven by demand for investors to find a return with the potential to deliver defined growth with set levels of protection. Within this market the demand for shorter-term and nil commission products are also increasing and this product is our first response to these growing sectors. 3 Year Growth Plan 1 provides investors with a 31% gross growth return if the FTSE 100 Index is at the same level or higher in three years time (equivalent to 9.42% gross/AER). For those who hold the view that the UK stock market will hold its value or grow over the medium term, 3 Year Growth Plan 1 could offer an attractive opportunity. However, it is important for clients and advisers to recognise that they do take on other risks in these plans, including the risk of counterparty default, and that capital is at risk from very large falls in the market.”
Note*: Capital is not protected with this Plan. Between 50% and 100% of the original investment will 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 three 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.
No commission is available on this product. Details for this product are provided on Legal & General’s 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 email firstname.lastname@example.org
Notes to editors
1. The contract start date is 6 November 2012 and the end of the fixed term is 6 November 2015.
2. This plan is not suitable for customers who may need to access their money before the end of the three year term or who may be seeking a definite return, and are not prepared to accept the risk that they may lose between 50% and 100% of their original 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.
4. If the FTSE 100 Index has fallen by less than 50% of its starting level at the end of the three years, the investor will receive back their original investment, but no bonus.
5. The gross rate is the rate of interest that would be payable before the deduction of income tax.
6. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
7. The investment should be held until maturity but can be encashed at any time. If this happens the investor may get back less than they originally invested.
8. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc rated A [stable] by Standard & Poor's as at 30 August 2012). 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.
9. 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:
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.