Barclays Wealth has launched a new investment offering a potential return of 60% after six years with the opportunity to lock-in gains for given rises in the FTSE 100.
Open for a strictly limited period, the UK Accumulator offers 100% of the rise in the index up to a maximum return of 60%, with gains locked-in for every 15% rise in the FTSE during the term.
Should, for instance, the index rise to 115% of its starting level at any point, Accumulator will lock-in a 115% return, while it will lock-in a 130% return should the FTSE climb to 130%, and so on up to a maximum return of 60%.
As an additional benefit the investment will become fully capital protected as soon as the first lock-in level of 115% level is reached. Before this point, capital would be at risk if index fell by more than 50% from its starting level at any point and remained below this level at maturity. If this were to occur – and the index had never risen 115% or more – capital repayment will be reduced by the percentage by which the index had fallen.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com
Lisa Chaudhuri, manager, Barclays Wealth, says: “Investors increasingly understand the difficulties inherent in attempting to time the market and want investments able to effectively remove this risk while giving them the potential to enjoy an attractive return. UK Accumulator locks-in gains for given rises in the FTSE 100 while keeping investors exposed to further potential upside, giving them more certainty and less timing risk than available though other investments. The fact that Accumulator becomes 100% capital protected if the first lock-in level is achieved is an additional bonus which should appeal to cautious investors keen to minimise the risk to their capital.”