Barclays Wealth launches new protected investments

Barclays Wealth is launching a new range of protected investments and continuing its Emerging Markets Optimiser as the structured product sector continues to witness a ‘flight to quality'.

Barclays Wealth, whose products are backed by its AA-rated parent Barclays Bank, is launching several new investments as it enjoys record demand for its growth, income and recovery products.

Open between 10 November 2008 and 9 January 2009, the new suite, includes the Regular Income Bond, which linked to the Dow Jones Stoxx50 index of European ‘supersector' stocks. The five-year RIB offers a fixed annual income of 7.75% or a quarterly income of 1.9%. Investors' full capital is returned at maturity unless the index has fallen by more than 40% at any time during the term and is at a lower level than its starting level by the maturity date, in which case capital is reduced on a 1:1 basis.

For investors seeking a recovery vehicle the range also includes the Super Tracker, a three- or five-year investment which provides geared exposure to the FTSE 100. The three-year option will return 2.5 times the rise in the index up to a maximum 50% return while the five-year option offers four times the rise up to a maximum 100% return. Investors' full capital will be repaid at maturity unless the FTSE 100 falls by more than 50 per cent at any time during the term and is at a lower level than its starting level by the maturity date, in which case capital is lost 1:1 with the index.

For investors seeking full capital protection the new suite offers three choices. The Protected FTSE Plan offers investors 1.25 times the rise of the index up to a maximum return of 25% (3-year option) or 2.5 times the rise up to a 50% maximum return (5-year option). The plan also features an early maturity option which provides a 25% return after two-and-a-half years if the index is 25% or more above its initial level.

Alternatively investors can choose the six-year Minimum Return Plan, which offers a fixed return of 18% plus an additional 26% if the index never trades below 60% of its initial starting level during the term or, if it does, it ends the term above its starting level. As with the Protected FTSE Plan, it offers full capital protection if held to its full term, irrespective of index performance.

Rounding out the range is the Emerging Markets Optimiser, an innovative five-year investment offering exposure to 23 emerging markets around the globe. Uniquely, the EMO offers daily adjusted exposure to the iShares MSCI Emerging Markets Index Fund, which gives exposure to the BRIC economies and key developing markets including South Korea, Taiwan and South Africa. Broadly, EMO's dynamic exposure strategy lowers exposure to the fund when its performance is volatile, and increases exposure when its volatility is less pronounced.

All of these products can be sold before their maturity but the investor will not receive the benefits promised at maturity and might get back less than was invested.

Colin Dickie, director, Barclays Wealth, says: "Investors are rightly fearful about losing their capital in the current climate and we aim to offer them a safer haven than unprotected equities are able to provide. Our range offers the prospect of competitive returns with the comfort of varying degrees of protection, plus - in the case of the Emerging Markets Optimiser - an investment designed to smooth out much of the volatility associated with this long-term growth area."