Legal & General launches new 4 Year Growth Plan for the New Year.
02 January 2013
Legal & General is pleased to announce the launch of a new 4 Year Growth Plan, a structured capital at risk 4 year investment, which offers investors the potential for a fixed bonus of 35% dependent on the level of the FTSE 100 Index and provided they remain invested until maturity.
4 Year Growth Plan 1 is available for investment over an eight week period from Wednesday 2 January until Friday 22 February 2013.
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 (13 March 2017) is the same as, or above, the initial index level on the strike date (13 March 2013). 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, Business Development Manager said; “This is the third product launch in our growth plan structured investment series to offer a relatively shorter term of less than five years.
We are experiencing growing demand for shorter term investments, particularly among investors prepared to accept less than 100% levels of protection to gain access to potentially higher defined growth.
Our latest product pays an attractive return of 35% if the FTSE 100 Index is at the same level or higher in four years time. However, investors in 4 Year Growth Plan 1 should accept that they do take on some risks with a product of this type. These include the risk of counterparty default, and a risk to capital 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 four 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.
This is a nil commission investment plan. It does not offer Facilitated Adviser Charging. Full details for this product are available on the Legal & General dedicated adviser website
Advisers can also contact Solutions First on 0370 050 0614 (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
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 13 March 2013 and the end of the fixed term is 13 March 2017.
2. This plan is not suitable for customers who may need to access their money before the end of the four 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 four years, the investor will receive back their original investment, but no bonus.
5. 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.
6. The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc). 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.
7. 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 30 June 2012, we were responsible for investing £388 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.
4 Year Growth Plan 1 is provided by Legal & General (Portfolio Management Services) Limited.
For more information please contact:
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.