Legal & General launch the latest plan in its Early Bonus â€œkick outâ€ series.
10 September 2012
Early Bonus Plan 9 offers a final bonus of 54% and also incorporates a “kick out” feature that pays investors their capital, plus a bonus payment, at any one of five set trigger points prior to the end of the term (20 November 2018) - see early bonus payment table below.
The Plan is available for investment over a seven week period from Monday 17 September until Friday 2 November 2012.
"David Beard, Business Development Manager said, “With the opportunity of a 9% return after year 1, Early Bonus Plan 9 offers the potential to achieve an inflation beating return but does require investors to accept some of the investment risk, including the risk of counterparty default. If the stock market is the same level or higher on the first anniversary Early Bonus Plan 9 will pay the first early payment and close. There are five opportunities for the kick out feature to trigger an early payment before maturity. Investors will also get back their original investment unless the FTSE 100 Index on the maturity date has fallen by 50% or more of the starting Index level on 20 November 2012"
The Plan offers repayment of capital plus a bonus as long as the final level of the FTSE 100 Index on any of the anniversary dates is equal to, or better than, the initial FTSE 100 Index level taken on the start date (also known as the strike date).
Early bonus payment
The early bonus payment feature will be activated if the FTSE 100 Index is equal to, or better than, the initial index level at any of the anniversaries. If this happens the Plan will close and pay a set bonus as shown in the table:
|End of year||1||2||3||4||5||Maturity|
If the early bonus payment feature is activated, the investment will close and there is no option for the investment to continue.
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 six 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. Investors can invest up to £11,280 in a stocks and shares ISA for the 2012/2013 tax year. There is no maximum for ISA transfers. The last date for ISA transfers is 19 October 2012 to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 2 November 2012.
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 email firstname.lastname@example.org
Notes to editors
1. The contract start date is 20 November 2012 and the end of the fixed term is 20 November 2018.
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 close of business on the start date and the final level of the Index on the maturity date and on each anniversary.
4. If the FTSE 100 Index has fallen by less than 50% of its starting level at the end of the six years, the investor will receive back their original investment, but no bonus.
For more information please contact:
About Legal & General
Legal & General (Portfolio Management Services) Limited.
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.