The potential for 7.05% gross annual growth and early maturity
The Legal & General Early Bonus Plan 23 is a maximum 6 year structured investment plan linked to the performance of the FTSE 100 Index (‘the Index’).
The objective of the Plan is to offer the opportunity for defined returns linked to the performance of the FTSE 100 Index. The Plan has a 6 year term, but offers the opportunity to mature early after years 1, 2, 3, 4 or 5. The Plan will achieve early maturity if on any Anniversary Date from year 1 onwards the closing level of the Index is equal to or higher than the Initial Index Level. If the Plan does mature early then it will return your original capital plus 7.05% times the number of years the Plan has been active.
Example - If the conditions were met on the third anniversary, the Plan would mature early, returning your capital plus 21.15% (i.e. 3 x 7.05% of your original investment). If, on the sixth anniversary the Index is equal to or higher than the Initial Index Level, the Plan will return your original capital plus 42.3%. However, if on the sixth anniversary, the pre-set conditions are not met there will be no investment returns payable and the return of your original capital will depend on the performance of the Index.
As long as the Index has not fallen by 50% or more at maturity from the Initial Index Level, you will receive the full return of your original investment. Any breach in this 50% safety net has the benefit of only being measured at maturity and not throughout the investment term, by comparing the Final Index Level to the Initial Index Level. If therefore at the end of the plan, the Index is below this 50% safety net barrier, you will lose 1% of capital for every 1% the Index has fallen below the starting level. It should be noted that in this scenario at least 50% of your capital will be lost. As such, this investment is only appropriate for those investors willing to accept the risk that they may lose some or all of their capital.
The Plan is available for stocks & shares ISA, ISA transfer and direct investment, as well as SIPP and SSAS pension investments. It is also available to businesses, charities and trusts.
Potential early maturity return - 7.05% gross x the number of years the Plan is active
Capital at risk investment*
- Investment term - maximum 6 Years
- Arrangement fee applies
- Minimum single investment - £3,000
- Maximum ISA investment - £11,520
- ISA transfers accepted
- No non-ISA maximum investment limit
- Also available to businesses, charities and trusts
Investment deadline for ISA Transfers: 10 January 2014
Investment deadline for direct and ISA investment: 24 January 2014
* The return of your capital depends on the performance of the FTSE 100 Index and the ability of the counterparty, Abbey National Treasury Services Plc, who are a wholly owned subsidiary of Santander UK Plc.
Reduced arrangement fee: For investments of £100,000 or more into this plan, processed through Fair Investment Company, your arrangement fee will be reduced to 2% of your original investment.