Legal & General launches Growth Investment Plan Plus (18)

Legal & General's latest product in its capital protected investment range, Growth Investment Plan Plus 18, is launched to independent financial advisers on 17 January and will be available for investment until Friday 27 February 2009. Investors can benefit from 100 per cent capital protection at maturity plus a return of 100 per cent of any capital growth in the FTSE 100 Index over the investment term, which is six years, maturing on 4 March 2015.

Legal & General's Investment Development Director (Individual Wealth), Jamie Vale said: "Growth Investment Plan Plus 18 could offer an alternative to savers looking to generate higher returns who may have concerns about exposure to equity markets. Savers in traditional cash deposit accounts have the opportunity to benefit from potentially higher returns without the worry about whether stock market share prices will fall in future. Cautious investors can track the capital growth from any FTSE 100 Index recovery over the next six years by investing in our latest plan (GIPP 18) and benefit from capital protection at maturity."

Growth Investment Plan Plus 18 also 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 potential benefit to investors of the ‘kick out' feature is that they are able to gain access to their capital. Growth Investment Plan Plus 18 pays out at a level 50 per cent higher than the growth trigger point ensuring investors are not disadvantaged if the stock market continues to grow strongly.
The early payment feature will be activated if the FTSE 100 Index has grown by 12 per cent 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.

Investors in Growth Investment Plan Plus 18 receive ordinary shares in the Growth Investment Plus XVIII 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 or ISA transfer. The minimum investment is £500 for ISAs and shares purchased through the brochure and £10,000 for investment directly into shares purchased via the Securities Note and Company's Registration Document. 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 18 would be unable to meet its stated objectives and investors would not get back all of their original investment or the stated return.