Legal & General launches second 3 Year Growth Plan.
22 October 2012
Our second structured capital at risk 3 year investment, 3 Year Growth Plan 2, offers investors the potential for a fixed bonus of 25% provided they remain invested until maturity.
3 Year Growth Plan 2 is available for investment over a nine week period from today Monday 22 October until Friday 21 December 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 (18 January 2016) is the same as, or above, the initial index level on the strike date (16 January 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; “Shorter-term and nil commission structured investments are growing in demand, particularly among investors seeking relatively higher defined growth and prepared to accept less than 100% levels of protection. Our latest product pays an attractive return of 25% if the FTSE 100 Index is at the same level or higher in three years time. However, this product is not risk free. Investors in 3 Year Growth Plan 2 should accept that they do take on other 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 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 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 16 January 2013 and the end of the fixed term is 18 January 2016.
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 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.
For more information please contact:
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.