Barclays widens pool of unbundled investments
Barclays has launched a range of unbundled investments with multiple distribution options designed to best meet a variety of investor needs. It has launched the Defined Returns Plan Annual Kick-Out (July edition) with Year 1 and Year 2 options alongside six additional investments (FTSE Autocall E1, E2 and E3 Year 1 and Year 2 options) which are offered via platforms, stockbrokers and SIPPs, with potential returns varying from 7% to 10.25% per annum depending on the option chosen.
Richard Henry, Director, Barclays, said: "Following a positive reception which demonstrated a desire for multiple investment routes, we are seeking to widen the offering. Investors, now more than ever, look for the best value that can be achieved and by broadening access we hope to meet their varying needs and in the long term create better value; your rate of return depends on the route that you choose."
The Defined Return Plan (AKO 100) July 2012 edition is available through Woolwich Plan Managers, and the FTSE Autocall products are available through a number of platform providers including Transact and Nucleus and through most SIPP providers including AJ Bell SIPPCentre.
Investors are able to invest in the AKO options up until the 14th September, with the FTSE Autocall options available right up until the investment start date, 28th September 2012, providing Barclays receives an instruction to invest from the relevant investment platform by noon on that date.
Henry continued: "These particular products could be seen as attractive in the current market environment as they do not rely on positive FTSE performance over the term of the product. While investors capital is fully at risk, the opportunity to receive a return on any of six anniversary dates can help to mitigate market timing risk, as does the ability to invest right up to the investment start date in the case of the autocall investments."
All eight products are subject to the counterparty risk of Barclays Bank PLC with possible early maturity from the first or second anniversary onwards should the FTSE be at or above the initial index level on an anniversary date. Capital is fully at risk if the early maturity condition is never met, and the final index level is more than 50% below the initial index level. Should investors sell before kick out or maturity, they may get back less than they invested regardless of the index's performance.