Legal & General launch new Early Bonus plan series
Legal & General has launched the newest investment plan in its structured capital at risk product (SCARP) range, Early Bonus Plan 1.
It is designed to provide investors with the potential for a bonus of up to 40% of the initial investment with an early bonus payment feature, which means the investment could close early.
Early Bonus Plan 1 is available for investment from Monday 11 July until Friday 2 September 2011. It has a five year term, which matures on 21 September 2016. However, the ‘kick out' feature means that investors may receive their capital, plus a bonus payment, at any one of four trigger points during the investment period.
The Plan offers a bonus of 40% at the end of the five-year term, as long as the final level of the FTSE 100 Index 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 and the early bonus payment is not triggered.
Legal & General's Head of Business Development, James Harrington said, "Our newest SCARP offers investors an upside potential of 40% of their original capital investment, plus it aims to return the investors' original capital at the end of the five-year fixed term.
There are also four stages in the life of Early Bonus Plan 1 where the early bonus payment feature could be activated and the investment closed early paying investors a set return depending on how the FTSE 100 Index performs."
The early bonus payment feature will be activated if the FTSE 100 Index is at or above its starting level at any of the anniversaries.
If the early bonus payment feature is activated, the investment will close and there is no option for the investment to continue.
Capital is not protected with this Plan and there is the potential that some or all of the original investment may be lost;
If the FTSE 100 Index is the same or higher than its starting level at the end of the five years, the original capital amount will be returned in full.
If the FTSE 100 index has fallen by less than 50% (that is 0% - 49%) of its starting level at the end of the five years, the original capital invested will be returned in full
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.
The minimum investment is £3,000 and the maximum for new ISA applications is £10,680. There is no maximum for ISA transfers. The last date for ISA transfers is 19 August 2011 to allow time for the completion of transfer before the offer close date. The closing date for all other applications is 2 September.