Legal & General launches third Fund Tracker Deposit Bond
Legal & General's new Fund Tracker Deposit Bond 3, which tracks the performance of the Legal & General Money Builder (Investec) Fund, will be available from Monday 1 February 2010 for a limited offer period closing Friday 9 April 2010.
It is a fixed term deposit plan with a life of five years and offers two investment options:
Fund Tracker Deposit Bond 3 - Option 1. Designed to return original capital at the end of the fixed term and provide 100% of any growth in the Legal & General (Investec) Money Builder Fund up to a maximum of 50% of original investment.
Fund Tracker Deposit Bond 3 - Option 2. Designed to return original capital at the end of the fixed term and provides the greater of a 10% minimum return or 60% of any growth in the Legal & General (Investec) Money Builder Fund over the fixed term.
For both investment options capital is held on deposit by Investec Bank plc. Performance is linked to the change in price of the standard units over the fixed term.
The Legal & General (Investec) Money Builder Fund invests 60% in the Investec Cautious Managed Fund, and 40% in the Investec Target Return, with investment in the Cautious Managed Fund permitted to rise to a maximum of 70%.
Legal & General's Business Development Director, Savings, Jamie Vale said "Our innovative Deposit Bond gives cautious investors two reasons to invest. Firstly, by tracking performance of the Legal & General Money Builder (Investec) Fund investors have an opportunity to benefit from greater potential investment returns than they can achieve by saving in a traditional deposit account over the medium to long term. Secondly, because their money is held on deposit they have the security of knowing their money is protected in the same way as it is with any other bank or building society account. Advisers can offer their clients a choice of maximum growth potential with option 1, or a set minimum return in option 2."
The minimum investment is £500. As this investment offer period falls over two tax years, it's possible to invest in an ISA in both the 2009/2010 and 2010/2011 tax years. The total amount that individual cash ISA investors could pay into the Fund Tracker Deposit Bond 3 is as follows: - For the 2009/2010 tax year - £3,600 (£5,100 for savers over age 50 at 5 April 2010)
- For the 2010/2011 tax year - £5,100
There is a maximum of £50,000 for ISA transfers and direct deposit investments.