Barclays launches new suite of protected investments

Barclays Wealth, one of the UK's leading suppliers of capital protected investments, is launching a new suite of plans for investors seeking shelter from ongoing market volatility.

Open between May 1 and June 30, the new suite, offers a variety of protected growth or income plans with various degrees of protection for investors seeking exposure to major markets without the risks associated with Oeics and unit trusts.

The new range includes the Protected FTSE Plan, which offers 1.5 times any rise in the FTSE 100 index up to maximum return of either 22.5 per cent (three-year option) or 51 per cent (five-year option). Alternatively, investors in the five-year plan can opt for the Barclays Wealth early maturity option, which will deliver a 22.5 per cent return if the index is at least at its starting level after two and a half years.

If the index is below its starting level after two and a half years, the plan will continue on the same terms as the standard five-year option.

Completing the 100 per cent capital protected range is the six-year Minimum Return Plan, which offers a 24 per cent fixed return plus a variable bonus of up to 18 per cent depending on the performance of the FTSE 100.

Also available is the Regular Income Bond, an income-only product linked to the Dow Jones Stoxx 50 index, which gives exposure to 50 ‘supersector' stocks across Europe (including the UK). The five-year bond offers an annual gross income of 7.2 per cent or a quarterly income of 1.78 per cent. Investors' full capital will be returned unless the index falls by 40 per cent and is not at least equal to or higher than the initial index level maturity, in which case capital is lost 1:1 with the index.

In addition, Barclays is launching a new five-year Super Tracker, offering six times any rise in the FTSE 100 up to a maximum return of 75 per cent. The Super Tracker will return investors' full capital unless the FTSE 100 falls by more than 50 per cent and is not at least equal to or higher than the initial index level by maturity.

Lisa Chaudhuri, manager, Barclays Wealth, says: "With volatility showing no sign of abating advisers need continuous access to competitive products with various degrees of protection and the new range offers them plenty of attractive options for their clients. We are particularly pleased that despite market conditions we have been able to maintain the maximum return on our Super Tracker product at 75 per cent whilst raising the gearing to six times the first 12.5 per cent rise."