Barclays launches new core suite of investments

Barclays, one of the UK’s leading suppliers of capital protected investments, has launched a new core range of investments – focussing on capital preservation - as part of its ongoing drive to offer advisers continuous access to products that maximise returns in volatile markets.

The range includes the three-or-five-year Protected FTSE Plan, which offers 1.5 times the rise in the FTSE 100 up to a maximum return of 24 per cent (three-year option) or twice the rise in the index up to a maximum of 48 per cent (five-year option). IFA demand coupled with an expected burst of maturities has led Barclays to reintroduce the plan’s early maturity option, which gives a potential 24 per cent return after two and a half years (this is treated in the same way as the five-year plan if the option is not triggered).

Colin Dickie, director, Barclays Wealth, says: “The success of this new style of pay-off clearly reasonates with advisers, with the last Protected FTSE Plan raising some £15m. This was an excellent result given the market turbulence.”

The new range also includes a re-styled six-year Minimum Return Plan, which offers investors a 20 per cent minimum return if the plan is held to maturity, plus the potential to receive a stepped bonus of between 7.5 per cent and 22.5 per cent. Barclays’ new Guaranteed FTSE Account offers the same terms but closes on March 14 for Mini Cash ISA transfers and April 4 for new Mini Cash ISA investment .

Both these products are only available for download. All the above plans offer 100 per cent capital protection at maturity regardless of the performance of the index.

Barclays is also launching a new dual option version of its popular Super Tracker Plan, enabling investors to potentially double their investment from only a 10 per cent rise in the DJ Euro Stoxx 50 Index. This plan offers investors the choice of a six-year option linked to the DJ Euro Stoxx 50 Index or a five-year option linked to the FTSE 100. The six-year option offers investors 10 times the first 10 per cent rise in the DJ Euro Stoxx 50 while the five-year option offers five times the first 15 per cent rise in the FTSE 100, up to a maximum return of 75 per cent.

Both options will return to investors their full capital unless their respective index falls by more than 50 per cent and fails to recover to the starting point by maturity, in which case capital is lost on a 1:1 basis in line with index performance.

Dickie says: "The new range offers advisers choice and flexibility with improved potential returns in a highly volatile environment. As we start the New Year interest rates continue to fall resulting in these product being of even greater value to investors. With several maturities on the horizon and continuing market volatility, we think that our products can certainly have a role to play”.