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© Legal

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© Legal

  1. 1. © Legal & General (Portfolio Management Services ) Limited Date: December 2008 This presentation is in a ‘read-only’ format and should not be changed in any way. Legal & General (Portfolio Management Services) Limited Registered in England No. 2457525 Registered office: One Coleman Street London EC2R 5AA www.legalandgeneral.com This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private customers or any other persons.
  2. 2. 2008 Portfolio Plus Pension Q0020316 01/09 H0095279
  3. 4. Summary of IFA research <ul><li>Product requirements for the individual pensions market; </li></ul><ul><ul><li>Extensive insured fund choice to offer a wide selection of funds with different investment objectives from different fund managers. </li></ul></ul><ul><ul><li>Simple recommendation of investing in insured funds only. </li></ul></ul><ul><ul><li>Simpler sale than a full SIPP. </li></ul></ul><ul><ul><li>More commission options and styles than the Legal & General Stakeholder and PP2000. </li></ul></ul><ul><ul><li>Flexibility to add self investment and income withdrawal within the same plan subject to a minimum criteria. </li></ul></ul>
  4. 5. Target market <ul><li>Aimed at mass affluent retirement saver requiring greater investment choice and control than is offered by Legal & General’s Stakeholder and PP2000. </li></ul><ul><li>Not wanting to self invest or to select income withdrawal at outset. </li></ul><ul><li>Values future flexibility as needs change. </li></ul><ul><li>Buyers typically over 35. </li></ul><ul><li>Attractive to buyers with transfer values of around £30,000 or more. </li></ul>
  5. 6. Product features <ul><ul><li>Access to over 300 insured funds from over 40 fund managers. </li></ul></ul><ul><ul><li>Ability to invest in up to 50 insured funds per contribution/payment type, subject to a maximum of 100 insured funds per plan. </li></ul></ul><ul><ul><li>Fund management charges will also apply and these start from 0.15% a year of the value of the fund (UK Equity Index Fund). </li></ul></ul><ul><ul><li>Unlimited free switches. </li></ul></ul><ul><ul><li>Accepts Divorce Credits. </li></ul></ul><ul><ul><li>Accepts Protected Rights monies and enables contracting-out on an ongoing basis. </li></ul></ul>
  6. 7. <ul><ul><li>Flexibility to exercise the option to add self investment and income withdrawal within the same plan, subject to minimum criteria. </li></ul></ul><ul><ul><li>Available on Cofunds Platform. </li></ul></ul><ul><ul><li>Flexible commission options, including ability to pay single premium funded commission up to age 75. </li></ul></ul>Product features
  7. 8. AMC and commission <ul><li>Choice of flexible commission styles </li></ul><ul><li>Contribution Based: </li></ul><ul><ul><li>Up to 5% commission funded by reducing the allocation rate, plus up to an additional 1% fund based commission, funded by identical increase in AMC. </li></ul></ul><ul><li>Funded commission: </li></ul><ul><ul><li>Level and fund based or SP and fund based - up to 5% + 0.5% FBC. </li></ul></ul><ul><ul><li>Initial and fund based - up to 2.5 x monthly premium + 0.5% FBC. </li></ul></ul><ul><ul><li>Fund based only – up to 1%. </li></ul></ul><ul><ul><li>Funded by an increase in the AMC. </li></ul></ul><ul><ul><li>Tiered AMC </li></ul></ul><ul><ul><li>The AMC is applied on a tiered basis, so that the appropriate rate of charge is applied to the part of the insured fund(s) value falling within each band. Standard AMC on nil commission terms: </li></ul></ul><ul><ul><ul><li>0.5% < £30k </li></ul></ul></ul><ul><ul><ul><li>0.1% > £30k </li></ul></ul></ul><ul><ul><ul><li>Additional temporary AMC of 0.5% of the value of the fund a year until the insured fund(s) value first reaches £15,000 at the start of a plan month. </li></ul></ul></ul>
  8. 10. Summary <ul><ul><li>Simpler sale than a full SIPP. </li></ul></ul><ul><ul><li>Access to over 300 insured funds from over 40 fund managers. </li></ul></ul><ul><ul><li>Up to 50 funds per contribution/payment type (maximum 100 per plan) with free switches. </li></ul></ul><ul><ul><li>Accepts Protected Rights and Divorce Credits. </li></ul></ul><ul><ul><li>Available on Cofunds Platform. </li></ul></ul><ul><ul><li>Flexible commission options. </li></ul></ul><ul><ul><li>Self investment and income withdrawal option. </li></ul></ul>
  9. 11. Thank you

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