Barclays Wealth defensive defined returns plan
Barclays Wealth has launched a new Defined Returns Plan Annual Kick-Out which aims to offer a return of 7% per annum, with a possible early maturity from the second anniversary onwards. Early maturity of the investment will occur subject to the FTSE being at or above 90% of the initial index level on an anniversary date. An investment return will be realised on the first anniversary on which this condition is met, from the second year onwards. This offering is available to investors from today until the 11th April 2012. Investors can sell before kick out or maturity but may get back less than they invested irrespective of the index's performance. The investment is subject to the counterparty risk of Barclays Bank PLC.
Richard Henry, Director, Barclays, said: "Against a choppy backdrop and with the FTSE close to a three year high, many investors are understandably cautious regarding the outlook for the FTSE. Allowing for a potential fall of up to 10% in the market, Barclays Wealth has launched the new Defined Returns Plan Annual Kick-Out to allow investors to express a cautious view of future growth."
Offering an attractive potential annual return of 7%, the new Defined Returns Plan Annual Kick-Out has been created especially for investors that are looking to strike a balance between limiting their risk and maximising overall returns. The product will pay out a 7% return even if the level of the FTSE 100 drops by up to 10% from the initial index level, offering some reassurance to investors who are worried about a potential market upset. However, if there has been no early maturity after six years, capital repayment will be reduced if the index closes, at maturity, below 50% of its initial index level. Should this happen, investors will lose capital on a one-for-one basis with the index.
Richard Henry continues: "The launch of this product highlights Barclays Wealth's commitment to providing innovative investment solutions to investors by offering a broad range of products which aim to limit risk and maximise potential returns."
Full details of all new products can be found at barclaysinvestmentsolutions.com.