Legal & General's Protected Portfolio is to close for investment on 30 November. The product offers ...
Legal & General's Protected Portfolio is to close for investment on 30 November. The product offers the potential of capital growth from a portfolio of 30 stocks selected from the top 200 UK firms.
Stocks included were selected by L&G's fund managers on the basis of their superior growth prospects.
Investor's capital is protected 100% if the product is held for its entire lifetime, regardless of the performance of the underlying stocks.
Returns are based on the performance of the selected stocks, calculated individually.
The growth on any individual stock is limited to a maximum of 100% and is not linked to the performance of any other held in the portfolio. At the end of the five-year term of the product, the sum of the return of the stocks is divided by 30 to calculate the overall portfolio return.
The product invests in an underlying company, the Dublin-listed Legal & General UK Performance company, which in turn holds the stocks and other financial instruments such as derivatives, which facilitate the guarantee on the product.
The launch of the company incurs a cost of 4% and on-going expenses of a maximum of 0.8% a year but these costs are built into the product's structure. If an investor puts in £100 then they buy £100 worth of units. It is available to investors through a maxi or mini Isa, Pep transfer or direct investment, which has no maximum limit.
Intermediary commission is 3%. The cost of commission also built into the structure of the product.
Investment in the selected stocks will be made on 5 December and these will include companies such as Anglo American, Hanson, BAE Systems, Diageo, Reckitt, Glaxo, Next, Dixons and Reuters.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week