L&G Growth Investment Plan Plus 10

Growth Investment Plan Plus 10, the latest product in the series of capital protected investment plans from Legal & General, will provide investors with 160 per cent of any capital growth in the FTSE 100 Index over its six year term (maturing on 24 October 2013) plus 100 per cent capital protection (at maturity).

It opens for investment for a limited (eight week) offer period from Tuesday 28 August to Friday 19 October 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 as shown below:

Year = 3

Level of FTSE 100 Index required for early payment feature to be activated = at least15% growth measured from closing value on 24 October 2007 to spot close value on 25 October 2010.

Early payment feature = 25 per cent.

If the early payment feature is activated, the investment will close and there is no option for the investment to continue.

Legal & General’s Investment Development Director (Individual Wealth), Jamie Vale said: “This is the highest level of return on the Growth Investment Plan series to date and is likely to prove extremely popular with investors who are looking for the potential for high returns while protecting their initial capital. In view of the recent volatility in the FTSE 100 Index we believe investors will be keen to preserve their capital over the medium to long term. ”

Jamie added: “Legal & General capital protected plans have been consistently delivering on their promises with the company providing high quality customer service since we entered this sector in 1995. Our position as one of the leading financial services companies in the UK with assets under management of £257 billion worldwide (as at 30 June 2007) and a financially strong company help us to build competitive products that offer capital protection to our customers.”

Investors in Growth Investment Plan Plus 10 receive ordinary shares in the Growth Investment Plus X sub-fund of Legal & General Protected Investments plc (which is a Dublin based company, authorised by the Irish Financial Services Regulatory Authority).

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 10 will be unable to meet its stated objectives and investors will not get back all of their original investment or the stated return.