Legal & General launches third plan in structured growth series
Legal & General has announced the launch of Growth Plan 3; a structured capital at risk product, which offers investors the potential for a fixed bonus payment of 55% of the initial investment at the end of its five year term.
Growth Plan 3 offers a bonus of 55% as long as the final FTSE 100 Index level 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, which is 21 December 2016.
Legal & General Savings' Head of Business Development, James Harrington said, "With the continued volatility seen on the global stock markets, many investors may be reluctant to expose their savings directly to equities, but they equally recognise the impact that the current relatively high level of inflation is having on the real value of their capital. Investment plans such as our Growth Plan range offer investors, who believe that markets will stabilise over the medium term, the opportunity to potentially capture some good growth from a rise in the FTSE 100 Index, whilst at the same time reducing the downside risk. Of course, 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. However, capital at risk structured investments add another element of choice to the portfolio planning process when spreading investment and credit risk."
Growth Plan 3 will be available for investment from Monday 17 October until Friday 2 December 2011.
The investment is structured to offer investors a bonus if the Final Index Level1 at the maturity date (21 December 2016) is the same as or above the Initial Index Level1 on the strike date (21 December 2011). If the Final Index Level1 at the maturity date has fallen by less than 50 per cent of the Initial Index Level1 investors get their original investment back but no bonus.
There is the potential that some or all of the original investment may be lost - If the Final Index Level1 at the maturity date has fallen by 50 per cent or more of the Initial Index Level1 investors will get back less than they originally invested, as they would lose 1 per cent of their investment for every 1 per cent the FTSE 100 Index is lower than its starting level.
This investment does not take account of dividends that would be available through holding shares directly in the companies that make up the FTSE 100 Index.
The minimum investment is £3,000 and the investment is available as a stocks and shares ISA, ISA transfer or through direct investment (the closing date for ISA transfer applications is
For new ISA applications clients can invest up to £10,680 for the 2011/2012 tax year. There is no limit on ISA transfers.