Barclays Wealth Target Growth Plan Offers New Payment Structure
07 January 2010 / by Andy Davies
Barclays Wealth has announced the reissue of its Target Growth Plan with a new payoff and capital protection structure.
Already available, the new edition of the Target Growth Plan uses an alternative method to calculating the investment return for investors.
Where in previous issues the index will have been observed on the final day of the investment term, the new issue offers investors a fixed return of 50 per cent at maturity provided the FTSE 100 has traded at, or exceeded its starting level at any point during the final three months of the investment term.
Investors can expect to receive their capital in full unless the index fails to trade above 50 per cent of its starting at any time during the last three months of the investment. In this event, capital would be lost 1:1 with the index.
Commenting, Lisa Chaudhuri, Barclays Wealth manager said: “Fixed rate style investments remain popular with investors and advisers seeking to build some certainty into portfolios which are still, in the main, highly exposed to market falls.
“Our latest Target Growth is designed to deliver an attractive return even if the FTSE 100 makes little progress over the coming years; and its new protection structure means that we have mitigated the risk of observing the FTSE 100 level on the final day and now observe the most favourable position FTSE 100 over the final three months.”
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