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1370 - Capped Growth

Term Fixed
Return Growth
Sector Non-Protected Growth
Return Calculation Participation in any positive performance of an Underlying, where the participation is less than or equal to one times. The return is capped at a maximum level.
Capital Repayment Full repayment at maturity only if the Underlying meets certain pre-specified conditions (for example, closing above a certain level (the 'protection barrier'). This can be measured throughout the term (sometimes referred to as an 'American' barrier) or at maturity only (sometimes referred to as an 'European' barrier), depending on the terms of the product. If the condition is not met, capital is at risk. The repayment of capital will typically depend on how far the Underlying has fallen at maturity.
Investor Profile
  • Expects the Underlying to rise, but not by more than the maximum return.
  • Does not expect the Underlying to breach the condition required to protect capital, but understands their capital is at risk if it does.
  • Has a moderate to high risk profile (willing to put their investment at risk to achieve greater returns compared to similar capital protected products).
  • Understands that the maximum potential return from the product is capped at a defined level
  • Does not need an income from their investment.

1370 - Capped Growth

1370: How do they work?

UKSPA Product Code 1370 - Part 1

1370: Who might they be suitable for?

UKSPA Product Code 1370 - Part 2
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Representing the collective interests of leading structured product manufacturers in the UK

The UK Structured Products Association ('UKSPA') is a membership organisation established by the leading manufacturers of structured products in the UK. UKSPA provides a unified voice for its members, working with regulators, financial advisers and other trade bodies. It serves a number of important functions, including engaging with regulators, developing best practice guidelines, educating the investment community and providing a useful source of information for manufacturers, financial advisers and retail investors within the UK.

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