New growth plan from Legal & General
Legal & General has announced the launch of FTSE Growth Plan 8 this month. This is a structured capital at risk contract designed to offer investors the potential for a bonus payment at the end of the fixed term of 50 per cent of the investment amount. Capital is not protected with this plan.
FTSE Growth Plan 8 will pay a bonus of 50 per cent at the end of the five year term 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
23 March 2016.
Legal & General's Head of Business Development, James Harrington said, "Structured products have been growing steadily in popularity, perhaps largely driven by the prospect of continuing low interest rates. New sectors have emerged such as the ‘soft protection' or capital at risk product market, which are helping to grow the attractiveness of structured products by appealing to a wider group of investors. This is our eighth product in our FTSE Growth Plan series, first launched in 2009, reinforcing our view that demand is likely to remain high for this sort of product."
FTSE Growth Plan 8 was launched to IFAs on Monday 10 January 2011 and will be available for investment until Friday 4 March. It has a five year investment period. The investment is structured to offer investors a bonus of 50 per cent if the Final Index Level at the maturity date, which is 23 March 2016, is at or above, the Initial Index Level. If the Final Index Level at the maturity date is less than 50 per cent of the Initial Index Level, investors get their original investment back but no bonus. If the Final Index Level 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 and would lose 1 per cent of their money for every 1 per cent the FTSE 100 Index is lower than its starting level.
This plan is available on an advised basis only. IFAs play a key role in deciding whether this product is right for their clients as FTSE Growth Plan 8 is not suitable for investors unable to remain invested for the full fixed term period and capital is not protected with these plans. These investments do 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 an ISA, ISA transfer or through direct investment (the closing date for ISA transfer applications is 18 February to allow time for completion of transfer before the offer close date).