Because Investors' requirements are rarely the same.

The Guaranteed UK Selected Growth Fund (October 2010 Series) satisfies the needs of a wide range of investors from cautious investors, who wish to invest with the peace of mind of a 100% Capital Guarantee and who wish to enjoy in addition a level of stockmarket growth, through to more confident investors, who wish to access higher levels of potential stockmarket growth but who also want to invest with a known minimum future capital return.

Features

• A choice of capital guarantee levels from 85% to 100% of your original investment.
• Equity growth linked to the average growth in the UK Stockmarket.
• Unlimited stockmarket linked investment growth.
• 3 year investment period.
• 2%pa interest paid during the offer period.
• Minimum investment: £5,000 Sterling.
• Next Closing Date for Applications:
  Friday 15 October 2010

How The Fund Works

This Fund achieves investment growth through an underlying investment link to a UK stockmarket index. The Fund incorporates two guarantees and your Total Repayment is the sum of these two guarantees. The Capital Guarantee you select is applied to the full amount you invest at the start of the Investment Period. This is your Capital Guarantee Amount (Guarantee 1) and represents your minimum Total Repayment. To the Capital Guarantee Amount is added the Equity Growth Amount (Guarantee 2). The Equity Growth Amount is the Equity Growth Percentage (shown in the table above) corresponding to the level of Capital Guarantee you select multiplied by the Index Growth, which is the average growth in the UK Stockmarket Index (the “Index”) over the three year Investment Period, applied to the full amount you invest at the start of the Investment Period. One effect of averaging is likely to be to constrain the final level of the Index although this is balanced by offering higher Equity Growth Percentages than would be available if a single Index level at the end of the Investment Period was used to calculate the Total Repayment.

Worked Example

If a Capital Guarantee of 85% is selected with the corresponding Equity Growth Percentage of 125% and the average growth in the Index over the Investment Period is 30%, the Equity Growth would be 30% x 125% which equals 37.5%. Add to this the 85% Capital Guarantee and the Total Repayment in this example is 122.5%, so the investor will receive back 122.5% of the amount invested. In this example the high growth reward of stockmarket linked investment is achieved whilst at the same time capital protection is provided over the Investment Period.

The Effect Of Index Movements On The Investment Return

The chart below shows the range of Total Repayments where the Index Growth is between
-20% and +50%. The range of Index movements shown is for the purpose of illustration only and the Index may fall or rise by more than the amounts shown.

The chart shows that:

• The minimum Total Repayment is the Capital Guarantee Amount.
• At all levels of Capital Guarantee selected there is no cap or upper limit on the potential returns.
• The lower the Capital Guarantee selected the higher the total potential return.

Risk Factors

• If there is no Index Growth over the Investment Period your Total Repayment at the end of the Investment Period will be the Capital Guarantee you selected at the start of the Investment Period applied to the full amount you invested.
• Past performance is not necessarily a guide to the future.
• Your circumstances may change and you may require access to your capital. You do not have a right to redeem your investment until the end of the Investment Period or otherwise realise your investment during the Investment Period unless a purchaser for your Shares can be found.
• The asset structures held within the Fund are guaranteed by Barclays Bank Plc and are held with a counterparty within the Barclays group. The strength of the Guarantor is important since the failure of the Guarantor would lead to a substantial reduction in the amount that you would receive at the end of the Investment Period. Barclays Bank plc currently has a credit rating of AA- from Standard & Poor’s independent credit rating agency, a rating which in their opinion indicates “a very strong capacity to meet financial commitments”. Neither the Fund nor Structured Products Management Limited will be liable for any shortfall, in the event of the failure of a counterparty or the Guarantor to meet their obligations.
• Future changes in taxation may affect the tax treatment of the Fund and the amount you pay in tax.

Further Information

• The Fund Description document for the Guaranteed UK Selected Growth Fund - October 2010 Series (Pdf 50Kb) contains further information about the terms of the fund.
• The Guaranteed Growth Funds brochure (Pdf 97Kb) contains further information about how the fund works.