Barclays Wealth launches new Defined Returns Plans

Barclays Wealth is launching two new Defined Returns Plans as it seeks to offer investors in unprotected equities greater security and certainty amid continued market turmoil.

DRP Capital Protection and DRP Annual Kick-Out offer investors attractive fixed returns over a number of investment periods for minimal gain in the FTSE 100 index. And investors in the DRP Annual Kick-Out can enjoy a competitive fixed return - plus their original capital back - after only one year should the index match or exceed its starting point at the plan's first anniversary.

DRP CP, which is available for immediate investment, offers three options delivering a fixed return of either:

20 per cent - three-year option
30 per cent - four-year option
40 per cent - five-year option

All three investments offer full capital protection when held for their full terms and will deliver their stated return provided the FTSE 100 at maturity is equal to or higher than its level at the starting date.

DRP Annual Kick-Out, which is also available for immediate investment, offers investors a 10 per cent return for each year the plan is in force. If the index matches or exceeds its starting level on any anniversaries - including the final one - it will automatically mature and deliver 10 per cent multiplied by the number of years that the plan has been live.

If it does not automatically mature, the investment will return full money back unless the FTSE 100 is lower at maturity than at the starting date, and at some point during the investment period had fallen by 50 per cent or more from its initial level. In this event, capital is lost 1:1 with the performance of the index.

Colin Dickie, director, Barclays Wealth, says: "Strong sales of structured products clearly demonstrate that investors are increasingly concerned about their exposure to unprotected equities. We believe our DRP plans - in either guise - provide a great solution for wary investors looking to build more protection and performance consistency into their portfolios.

"Both DRPs offer competitive rates and, like all our investments, enjoy the backing of Barclays Bank - a AA rated institution - which should provide comfort to investors in what are clearly difficult times for markets."