Legal & General’s Growth Investment Plan Plus 7

Legal & General’s Growth Investment Plan Plus 7 provides investors with 125 per cent of any capital growth in the FTSE 100 Index over a six year term (maturing on 18 April 2013) plus capital protection (at maturity).

Growth Investment Plan Plus 7 will be open for investment for a limited (8 week) period from Monday 19 February to Friday 13 April 2007.

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. The early payment feature will be activated if the FTSE 100 Index has grown by 15% or more at the third anniversary.

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: “We believe that raising the potential return on our Growth Investment Plan Plus series should prove attractive with investors who want the opportunity to capitalise on any future growth in UK FTSE 100 Index equity exposure but also place a high value on capital preservation. This is often a key factor for investors when considering transferring from single company PEP plans, perhaps to achieve a broader asset mix, or who may be seeking to protect an existing PEP or ISA from a fall in the UK equity values.”

Investors in Growth Investment Plan Plus 7 receive ordinary shares in the Growth Investment Plus VII sub-fund of Legal & General Protected Investments plc (which is a Dublin based company, authorised by the Irish Financial Services Regulatory Authority 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 directly in the companies that make up the FTSE 100 Index.

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. It is only in the event that they default on their payments that Growth Investment Plan Plus 7 will be unable to meet its stated objectives and investors will not get back all of their original investment or the stated return.