Barclays Wealth launches Growthbuilder with 42% potential return

Barclays Wealth is launching a new product which offers investors who have a moderate view of future market growth a maximum return of 42% after six years.
Available now, the Growthbuilder offers a 7% locked-in return for every year that the FTSE 100, on any of the plan’s six anniversaries, is at or above its starting level. If the FTSE is below its starting level on any anniversary, no return will be locked-in – but this will not affect investors’ chance to lock-in future gains.
Investors’ capital is fully returned at maturity, irrespective of market performance. However, if investors withdraw from the product before maturity, some of their capital may be lost.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, manager, Barclays Wealth, says: “With the economic outlook far from certain the Growthbuilder aims to mitigate the problem of market timing, offering six opportunities to lock in gains should the FTSE 100 Index be either at or above its starting level on the anniversary dates. Previously the return on these types of products was dependent upon the level of the FTSE just at the end of the investment term, so this is a step forward. Capital is returned at maturity irrespective of the performance of the FTSE so this will offer added assurance to investors uncertain of future market performance.”