Legal & General launches Growth Investment Plan Plus 12

Legal & General is continuing its series of capital protected investment plans with the launch of Growth Investment Plan Plus 12, available for investment for a limited (seven week) offer period from Monday 14 January to Friday 29 February 2008.

Investors will benefit from a return of 140 per cent of any capital growth in the FTSE 100 Index over its six year term plus 100 per cent capital protection at maturity (maturing on 5 March 2014).

Although Growth Investment Plan Plus 12 is a six year investment 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 per cent or more at the third anniversary as shown in the table below:

Year
Level of FTSE 100 Index required for early payment feature to be activated.
Maturity growth paid

Three
At least15 per cent growth measured from closing value on 5 March 2008 to closing value on 7 March 2011.
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: “Our Growth Investment Plan Plus series demonstrates our commitment to provide a consistent flow of value for money, capital protected products to help advisers respond to clients needs in a timely way. Our aim is to make sure advisers are in a position to place an attractive Legal & General product proposition to cautious investors (who may be nervous about equity exposure) as the opportunity arises. Growth Investment Plan Plus 12 may also be attractive to investors who have not yet used their ISA allowance for 2007/2008 and are looking for the potential for high returns while protecting their initial capital.”

Investors in Growth Investment Plan Plus 12 receive ordinary shares in the Growth Investment Plus XII 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 12 will be unable to meet its stated objectives and investors will not get back all of their original investment or the stated return.