Barclays Wealth boosts rates on new investment range

Barclays Wealth is launching an enhanced range of capital protected investments as ongoing market turbulence continues to complicate market timing calls and increase the risk of capital loss.

Open between July 1 and August 29, the new suite offers investors improved terms on a variety of growth or income investments which are designed to maximise returns in volatile markets.

Included in the new range is the Protected FTSE Plan, which offers 1.5 times the rise in the FTSE 100 index up to maximum return of either 27 per cent (three-year option) or 60 per cent (five-year option). Previously the payoffs were 22.5 per cent and 51 per cent respectively.

Investors can alternatively choose the plan's popular early maturity option, which will deliver a 30 per cent return after two and a half years if the index is 30 per cent or more above its initial starting level. If the index has grown by less than that amount after two and a half years, the plan will continue on the same terms as the standard five-year option.

The new range also includes the Regular Income Bond, an income-only investment 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 7.5 per cent or a quarterly income of 1.85 per cent (previously these were 7.2 per cent and 1.78 per cent respectively). 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 at maturity, in which case capital is lost 1:1 with the index.

In addition, Barclays is launching a new five-year Super Tracker, offering five times the rise in the FTSE 100 up to 80 per cent. The investment 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 at maturity.

Colin Dickie, director, Barclays Wealth, says: "With concerns around inflation, interest rates have picked up substantially since our previous terms were last set two months ago. We have been able to pass on the benefit of this change directly to investors through improved terms. With stock markets back trading where they were in the earlier part of the year, this could allow investors the opportunity to benefit from the enhanced upside potential built into our products. This is amply demonstrated through our Super Tracker which only needs 16 per cent growth to deliver an 80 per cent return. Such growth potential could really help boost portfolio performance."