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Wealthbuilder - potential 30.9% return after six years
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Defined Returns Plan - choice of three, four and five year investments with a potential 18%, 30% or 45% return
Barclays Wealth has today launched two new structured investments, which aim to fulfil a range of investor priorities and investment needs. The new Wealthbuilder fixed-term deposit and Defined Returns Plan are both available from today and highlight the increasing range of options available to Barclays Wealth clients.
Wealthbuilder is aimed at investors seeking an alternative to traditional deposit accounts. Offering a potential maximum return of 30.9% after six-years, Wealthbuilder locks in a 5.15% return on each anniversary where the FTSE 100 is at or above its starting level. Investors' capital will be fully returned at maturity, irrespective of market performance. However, if investors withdraw from the deposit before maturity, capital may be lost.
The Wealthbuilder has been created especially for investors who are seeking to avoid the problems often associated with market timing, as it offers six opportunities to lock in gains, and also gives investors the chance to ring-fence growth on an interim basis, even if the market performs moderately.
The Defined Return Plan offers a potential return of 18%, 30% or 45% after three, four or five years respectively, depending on the options chosen by the investor. The return is paid at maturity providing the FTSE 100 Index is at or above 90% of its starting level. However in the event that the FTSE falls below 50% of its starting level during the term and fails to recover by the maturity date, capital will be lost on a 1-for-1 basis.
The Defined Return Plan is ideal for investors who have moderate or even negative expectations for the potential future growth of the FTSE, as operating the defensive barrier at 90% does not require a rise in the underlying index to pay out at maturity. Even if the index does not move from its current location the client will receive the enhanced coupon.
Richard Henry, Director, Investor Solutions, Barclays Wealth, said: "We believe the launch of these two new structured investments highlights Barclays Wealth's commitment to offering clients a variety of competitive investment solutions. We've launched the Wealthbuilder for those investors who don't want to keep a constant track on the ups and downs in the market, as the product offers regular opportunities to lock in gains, thus giving investors greater peace of mind without the worry of market timing."
"The Defined Return Plan on the other hand will prove attractive to investors who are already sceptical about prospects for future FTSE growth, and want to ensure returns even if they are proved right.
"At Barclays Wealth are constantly striving to offer our clients new and innovative products which will complement and enable them to diversify their investment portfolios, and we hope that these two new products will do exactly that."
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