Legal & General launches Growth Investment Plan Plus 6

Legal & General is launching the sixth plan in its series of capital protection and early payment feature investments.

Growth Investment Plan Plus 6 will be available from Monday 11 December 2006 to Friday 9 February 2007.

Growth Investment Plan Plus 6 provides investors with 100 per cent of any capital growth in the FTSE 100 Index over a six year term (maturing on 14 February 2013) plus capital protection (at maturity).

In addition, the plan includes an early payment feature (sometimes referred to as a ‘kick out’ feature), which means that if the FTSE 100 Index grows strongly the investment could close early. Investors are paid their original investment plus a maturity payment that is 10 per cent above the early payment trigger threshold.

In summary, investors receive a return of 25 per cent, if the FTSE 100 Index has grown by 15 per cent or more on the third anniversary (14 February 2010), 30 per cent, if the FTSE 100 Index has grown by 20 per cent or more on the fourth anniversary (14 February 2011) or 35 per cent return, if the FTSE 100 has grown by 25 per cent or more on the fifth anniversary (14 February 2012). If the early payment feature is activated, the investment will close and there is no option for the investment to continue.

Legal & General’s Sales Director (Protected Capital Products), Jamie Vale said: “The Growth Investment Plan Plus series is proving to be popular with IFAs whose clients want the opportunity to capitalise on some equity exposure but also place a high value on capital preservation. We hope that the nine week offer period will help advisers and investors, particularly when considering transferring existing PEP and ISA plans.”

Investors in Growth Investment Plan Plus 6 receive ordinary shares in the Growth Investment Plus VI sub-fund of Legal & General Protected Investments plc (which is a Dublin based company, authorised by the Irish Financial Services Regulatory Authority [IFSRA] with a shelf life of 10 years).

Investment is available as a Maxi ISA, Mini stocks and shares ISA, for PEP/ISA transfers and direct share investment. The minimum investment is £500. The maximum investment for Maxi ISAs is £7,000 and for Mini stocks and shares ISAs £4,000. There is no limit for PEP/ISA transfers and direct share investment. This investment does not take account of dividends that would be available through holding shares in the companies that make up the FTSE 100 Index directly.

Although capital is protected at maturity it is not guaranteed. In order to provide the capital protection and stated return the money is invested with high quality financial institutions with at least an ‘A’ or ‘A2’ financial strength rating (source: major global rating bodies). These institutions are considered financially secure by their nature. However, in the event that any of these financial institutions default on their payment, investors will not get back all of their original investment or the stated return.