PEP with a guarantee

Saturday 31 October 1992 00:02 GMT
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LEGAL & GENERAL is marketing a new 'Guarantee PEP' that cannot fall in value below the initial capital investment.

It says the scheme provides investors with reassurance that their capital is safe while allowing them to benefit from a tax- free investment in its UK Recovery Trust. The guarantee runs for five years and on the fifth anniversary, if the PEP's value is less than the original investment, L&G will make up the difference.

Investors may then remain invested and pick up any subsequent rise. They are also free to cash in at any time without penalty in the first five years or subsequently if they wish to take a profit or if circumstances change.

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