Legal & General launch new Early Bonus plan series.
15 July 2011
Early Bonus Plan 1 is available for investment from Monday 11 July until Friday 2 September 2011. It has a five year term, which matures on 21 September 2016. However, the ‘kick out’ feature means that investors may receive their capital, plus a bonus payment, at any one of four trigger points during the investment period (see early bonus payment table below).
The Plan offers a bonus of 40% at the end of the five-year term, 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 and provided the Plan is held until maturity and the early bonus payment is not triggered.
Legal & General’s Head of Business Development, James Harrington said, “Our newest SCARP offers investors an upside potential of 40% of their original capital investment, plus it aims to return the investors’ original capital at the end of the five year fixed term.
There are also four stages in the life of Early Bonus Plan 1 where the early bonus payment feature could be activated and the investment closed early paying investors a set return depending on how the FTSE 100 Index performs.”
The early bonus payment feature will be activated if the FTSE 100 Index is at or above its starting level at any of the anniversaries. If this happens the Plan will close and pay a set bonus as shown in the table below:
|End of Year||1||2||3||4|
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 and there is the potential that some or all of the original investment may be lost;
- If the FTSE 100 Index is the same or higher than its starting level at the end of the five years, the original capital amount will be returned in full.
- If the FTSE 100 index has fallen by less than 50% (that is 0% - 49%) of its starting level at the end of the five years, the original capital invested will be returned in full
- If the FTSE 100 index has fallen by 50% or more (that is 50% - 100%) of its starting level at the end of the five 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.
The minimum investment is £3,000 and the maximum for new ISA applications is £10,680. There is no maximum for ISA transfers. The last date for ISA transfers is 19 August 2011 to allow time for the completion of transfer before the offer close date. The closing date for all other applications is 2 September.
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 email@example.com
Notes to editors
The contract start date is 21 September 2011 and the end of the fixed term is 21 September 2016.
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.
The growth of the FTSE 100 Index will be measured using the level of the Index at close of business on the start date and the final level of the Index on maturity date and on each anniversary.
If the Index level on one of the early bonus anniversary dates (see below) is at, or above the initial Index level, the Plan closes early paying back the original investment plus a set bonus. The early bonus anniversary and payment dates are shown in the table below:
|Early Bonus Anniversary Date||Early Bonus Anniversary Date||Bonus %|
|21 September 12||28 September 12||8%|
|23 September 13||30 September 13||16%|
|22 September 14||29 September 14||24%|
|21 September 15||28 September 15||32%|
* Abbey National Treasury Services plc aim to pay us any applicable returns within seven working days following the anniversary date.
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.
The securities provider is Abbey National Treasury Services Plc (Guarantor is Santander UK Plc rated AA [negative outlook] Standard & Poors and AA- with a stable outlook by Fitch). 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.
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.
Early Bonus plan 1 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
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