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Barclays Wealth launches new Target Growth Plan

25th January 2012 Print

Barclays Wealth has launched a new Target Growth Plan, from which investors can receive a maximum return of 24.75% at maturity. This new product offers investors a very competitive return after three years, especially considering the current low interest-rate environment. The new Target Growth Plan is open to investors until the 14th February 2012 with a 28th February strike date. The minimum initial investment is £5,340.

The Target Growth Plan has been created especially for investors who have modest expectations of FTSE growth, and who are willing to accept risk to their capital, in return for a higher return than that currently available from cash or fixed rate bonds. To achieve the maximum 24.75% return, the FTSE 100 Index must never fall below 60% of the initial index level at close of business on each day over the term of the investment. If the minimum of £5,340 was invested, then the return after three years would be £6662.

If the FTSE index level falls 60% below the level it was when the investment was first made, and is not, at maturity, equal to or greater than its initial index level, both the return and initial capital will be reduced by the percentage amount the final FTSE index level is below its initial level. Returns will also only be delivered if investments are held for the full term, if investors were to cash in their investment early, they would be unlikely to receive back the amount they originally invested, regardless of performance of the index. The Target Growth Plan is a structured capital as risk product.

Richard Henry, Director, Barclays Wealth, said: "This new Target Growth Plan offers investors with modest expectations of the FTSE 100 the possibility of reaping returns higher than those available from cash or bonds. As interest rates look set to continue at historic lows, we hope this product will help investors balance their portfolios and maximise their returns.

"At Barclays Wealth we are committed to constantly offering competitive investment solutions to complement a variety of risk profiles. We hope that the new Target Growth Plan will prove an attractive and innovative investment solution for investors."