Legal & General and Barclays and launch Defined Return Plan 2
05 August 2013
Defined Return Plan 2 continues the new series of investments that combines access to Barclays’ investment expertise and Legal & General’s plan management and administration capabilities in a single bundled offering.
Richard Henry, Director, Barclays said: “It was pleasing to get a positive response from advisers to our debut launch with Legal & General, which reinforced our belief that we are collectively answering a need in the market.
The bundled route has certainly proved popular among our target market and fits well with our wider investment proposition. We are very pleased to be launching this second product together in what we hope will be a long running collaborative series.”
James Harrington, Head of Structured Solutions, Legal & General Savings said: “We are delighted that Defined Return Plan has proved an attractive proposition for investors and IFAs.
We are confident that this product will be a popular choice for the IFA market and look forward to developing further new products in the near future.”
Defined Return Plan 2 is a structured capital at risk product. It offers repayment of capital plus a defined return as long as the level of the FTSE 100 Index on the second anniversary, or subsequent anniversaries is equal to or above the starting level, taken on 9 October 2013.
The Plan will last a maximum of six years, but if the defined return payment feature activates, the Plan will close early on the second, third, fourth or fifth anniversaries.
The maturity date is 9 October 2019.
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.
Legal & General Defined Return Plan 2:
The Plan offers repayment of capital plus a defined return as long as the level of the FTSE 100 Index on the second anniversary, or subsequent anniversaries is equal to or above the starting level, taken on 9 October 2013.
The Plan will last a maximum of six years, but if the defined return payment feature activates, the Plan will close early on the second, third, fourth or fifth anniversaries. The maturity date is 9 October 2019.
See table below for potential returns:
|End of year||1||2||3||4||5||6|
(9 October 2019)
|FTSE 100 is unchanged or higher|| |
Capital is not protected with this Plan.
Between 50% and 100% of the original investment will be lost if the final level of the FTSE 100 has fallen by more than 50% from the starting level at the end of the six year term.
The original capital invested will be reduced by 1% for each 1% fall in the Index.
So, if the FTSE 100 Index is 60% less than its starting level, investors will receive 60% less than they invested.
The plan is hedged by securities issued by Barclays Bank Plc, rated A (Stable) by Standard & Poor’s as at 2 July 2013, and managed and administered by Legal & General.
The minimum investment is £3,000. Investors can invest up to £11,520 in a stocks and shares ISA for the 2013/2014 tax year.
There is no maximum for ISA transfers. The last date for ISA transfers is 6 September 2013 to allow time for the completion of the transfer before the offer close date.
The closing date for all other applications is 20 September 2013.
This plan offers Facilitated Adviser Charging (FAC).
Full details of FAC arrangements and product key features are available on the Legal & General dedicated adviser website landgstructuredproducts.com.
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
1. The contract start date is 9 October 2013 and the end of the fixed term is 9 October 2019.
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 the close of business on the start date and the final level of the Index on each applicable anniversary.
4. At the end of six years, if the defined return payment has not been triggered, the return will be as follows:
a) if the FTSE 100 Index has fallen by 50% or less from its starting level at the end of the six years, the investor will receive back their original investment, but no defined return payment.
b) if the FTSE 100 Index has fallen by more than 50% the client’s original investment will be reduced by 1% for each 1% that the final level of the FTSE 100 Index is below its starting level.
5. 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 encashed early the investor may get back less than they originally invested.
6. The securities provider is Barclays Bank Plc. In the event that they 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.
Barclays moves, lends, invests and protects money for customers and clients worldwide. With over 300 years of history and expertise in banking they operate in over 50 countries and employ over 140,000 people.
Barclays’ customers and clients benefit from access to the breadth of expertise across Barclays. They’re one of the largest financial services providers in the world, engaged in retail banking, credit cards, cor