L&G launches new triple index based capital protected investment

Legal & General has launched a new triple index based capital protected investment that offers the potential for 22% growth over its five year term, plus return of capital.

Capital Protected Triple Index Plan 2 is available for a limited (eight week) offer period from Monday 11 May until Friday 3 July 2009. Investors can benefit from 100 % capital protection at maturity, plus a return of up to 5, 10 or 22 % dependent on the performance of three major world stock market indices: FTSE 100 Index, DJ Euro Stoxx 50 Index and the S&P 500 Index, over the investment's five year term (maturing on 8 July 2014).

The maximum growth Capital Protected Triple Index Plan 2 provides is 22% and the minimum return is the original investment amount. The triple index approach offers three ways to achieve growth:

1. If all three indices have grown or stayed at the same level at the end of the five year term, investors receive 22% growth plus their original investment.

2. If two indices have grown or stay at the same level at the end of the five year term, investors receive 10% growth plus their original investment.

3. If one index has grown or stays at the same level at the end of the five year term, investors receive 5% growth plus their original investment.

Note: If all three indices have fallen at the end of the five year term, investors get back their original investment.

Legal & General's Director, Business Development, Jamie Vale said: "Cautious investors (who may be nervous about equity exposure) have the potential to benefit from equity market recovery in the US, Europe and the UK without the worry of having to invest their money in shares directly."

Investors in Capital Protected Triple Index Plan 2 receive ordinary shares in the Capital Protected Triple Index Plan II 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 an ISA, ISA transfer or through direct shares. The minimum investment is £500. ISA investors may invest up to £7,200 in the 2009/2010 tax year. There is no maximum investment for ISA transfers and direct shares investments.

Although capital is protected at maturity it is not guaranteed. In order to provide the capital protection and stated return the money is used to purchase a range of interest bearing securities and some option(s) from a range of high quality financial institutions that have at least an ‘A' or ‘A2' financial strength rating (source: world leading independent rating agencies). These institutions are considered financially secure by their nature. However, if they default on their payments Capital Protected Triple Index Plan 2 will be unable to meet its stated objectives and investors will not get back all of their original investment or the stated return. This investment does not take account of dividends that would be available through holding shares directly in the companies that make up the indices.

Capital Protected Triple Index Plan 2 pays a commission to advisers of 3% of the sum invested (no commission on moving from existing Legal & General investments).