L&G Portfolio Bond

Overview

Benefits In Brief

As you are all too aware, in the world of investment, not all clients are the same and one size does not fit all.

We understand that your clients have different investment needs, objectives, expectations and attitudes to risk. Importantly, clients also have different views about how they pay for the investment wrapper and service they are buying.

The Legal & General Portfolio Bond – designed to provide you with the flexibility to choose from three charging options to create a solution that matches your client's needs.

• Initial charge

  - Pay charges* upfront. No early surrender charges, flexible and has an added loyalty bonus

• Standard

  - Pay charges* over the first five years of investment. A higher rate of allocation than the initial charge option. Also includes a loyalty bonus

• High Allocation

  - Pay charges* over the first seven years of investment. Has the highest allocation rate of the 3 options so your client's initial investment buys more units.

Features

Fund Choice

Over 320 carefully selected insured funds from more than 45 management groups, including:

• Fund of funds, specialist funds and Legal & General funds
• Funds from a number of providers including Credit Suisse, Gartmore, Jupiter and Insight
• A broad choice of underlying assets
• A broad range of ABI sectors.

Three Charging Options

1. Initial Charge

Pay charges* upfront. No early surrender charges, flexible and has an added loyalty bonus.

• Initial charge taken from the investment amount. Allocations range from 92.5% to 96.75%. Allocation rates vary by age
• (three age bands) and by investment amount
• No establishment charge
• No early surrender charges.

Loyalty bonus of 0.5% of the value of the investment added each year from the 5th anniversary. Plus, an extra 2% of the value of the investment added on the 10th anniversary.

2. Standard

Pay charges* over the first five years of investment. A higher rate of allocation than the initial charge option. Also includes a loyalty bonus.

• Allocations range from 97.5% to 102%. Allocation rates vary by age (three age bands) and investment amount
• Establishment charge of 0.25% per year taken from the value of the investment each year for five years from the date of investment
• Early surrender chares in the first five years, reducing from 10% in year 1 to 4% in year 5.

Loyalty bonus of 2% of the value of the investment added on the 10th anniversary of investment.

3. High Allocation

Pay charges* over the first seven years of investment. Has the highest allocation rate of the three options so your client's initial investment buys more units.

• Allocations range from 103.5% to 108.25%. Allocation rates vary by age (three age bands) and investment amount
• Establishment charge of 1.00% per year taken from the value of the investment each year for seven years from the date of investment
• Early surrender charges in the first seven years, reducing from 15% in year 1 down to 3% in year 7.

* Except for ongoing fund charges (AFCs and additional expenses) which are the same for each charging option.

Applying To All Charging Options

Pay charges* over the first seven years of investment. Has the highest allocation rate of the three options so your client's initial investment buys more units.

• Minimum investment of only £5,000
• Death benefit on death of 101% of the value of the bond
• Access to view online valuations, transaction history and commission MI.

Further details on the charging options can be found on the Product Summary and Product Guide.

Flexibility

• Up to a maximum of 50 different funds per bond
• A broad choice of assets
• Currently free switching between funds
• A range of withdrawal options including natural income on some of Legal & General’s own funds
• A variety of trusts designed to help reduce Inheritance Tax liability
• Up to 6 lives assured/grantees per policy
• Up to 9,999 policies to assist tax-efficient partial surrenders
• Up to five increments can be made for added tax efficiency.

Charges

Further details on the charging structures can be found on the Product Summary and Product Guide.

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