Press releases

Growth Plan 8 offers 65% fixed bonus.

David Beard, Business Development Manager
David Beard
Head of Product Development

02 July 2012

David Beard, Business Development Manager
David Beard
Head of Product Development

Growth Plan 8, which offers investors the potential for a fixed bonus of 65% at the end of its five year term, is available for investment over an eight week period from Monday 2 July until Friday 24 August 2012. 

The investment is structured to offer investors return of their initial capital plus a bonus if the FTSE 100 Index level at the maturity date (11 September 2017) is the same as, or above, the initial index level on the strike date (11 September 2012).  However, if the index level at the maturity date has fallen there is the potential that some or all of the original investment may be lost1

David Beard, Legal & General’s Business Development Manager, Platforms and Distribution said “Structured Investments are growing in popularity, driven by demand for investors looking for a return with the potential to deliver defined growth with set levels of protection. This sector is strictly for investors who are prepared to take an element of risk with their capital. 

Growth Plan 8 provides investors with a 65% growth return if the FTSE 100 is at the same level or higher in five years time. For those who hold the view that the UK stock market will hold its value or grow over the medium term, Growth Plan 8 could offer an attractive opportunity. However, it is important for clients and advisers to recognise that they do take on other risks in these plans, including the risk of counterparty default, and that capital is at risk from very large falls in the market.”

Note1: Capital is not protected with this Plan. There is the potential that some or all of the original investment may 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 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. 

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 use their stocks and shares ISA allowance, where available, for the 2012/2013 tax year to invest up to £11,280. There is no maximum for ISA transfers.

The last date for ISA transfers is 10 August to allow time for the completion of the transfer before the offer close date. The closing date for all other applications is 24 August 2012.

Commission is 3% of the sum invested. Full details for this product are available on the Legal & General's 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 structured.team@landg.com

Notes to editors

1. The contract start date is 11 September 2012 and the end of the fixed term is 11 September 2017.
2. This plan is not suitable for customers who may need to access their money before the end of the five 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.
4. If the FTSE 100 Index has fallen by less than 50% of its starting level at the end of the five years, the investor will receive back their original investment, but no bonus.
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 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 rated A by Standard & Poor's as at 30 April 2012). 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.
Source http://www.aboutsantander.co.uk/investors/credit-ratings.aspx
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:

Mike Connolly

Mike Connolly

About Legal & General

Legal & General (Portfolio Management Services) Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 2457525.

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