Barclays Wealth launches new protected range

Barclays Wealth is targeting savers caught between volatile equities and falling interest rates with a new range of protected investments offering geared exposure to stock markets or a high level of fixed income.

Open between 12 January and 6 March 2009, the new range is backed by AA- rated Barclays Bank and includes four investments to suit varying risk profiles and views on the future direction of the stock market.

For investors seeking high income in a falling interest rate environment, the range offers the Regular Income Bond, a five-year investment linked to the FTSE 100. The RIB offers a fixed annual income of 7.75% or a quarterly income of 1.9% and will return investors' full capital unless the index has fallen by more than 50% during the term and at maturity is lower than its initial starting level, in which case capital is reduced on a 1:1 basis.

For investors seeking the opportunity to claw back previous losses, the range (full details of which can be found through barclaysinvestors.com/ifa) also offers the Super Tracker, a three- or five-year investment which provides geared exposure to the FTSE 100. The three-year option will return three times the first 20% rise in the index up to a maximum return of 60%, while the five-year option offers five times the first 20% rise up to a maximum 100% return. Investors' full capital will be repaid at maturity unless the FTSE 100 falls by more than 50% during the term and is lower 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 includes the five-year Protected FTSE Plan, which offers two times the first 20% rise in the index up to a maximum return of 40%. Alternatively investors can choose the six-year Minimum Return Plan, which offers a fixed return of 15% plus an additional 18% return as long as the index does not fall to a level below 40% of its starting level.

Colin Dickie, director, Barclays Wealth, says: "With equity markets continuing to be highly unpredictable and interest rates edging ever closer to 0%, investors are caught in a quandary. Our protected investments offer a compelling middle way: competitive rates of return, varying levels of capital protection and payoffs to suit all types of views on the market and attitudes to risk. Investors should consider protected investments when seeking the chance to claw back losses, in the case of the Super Tracker, as well as to build some much-needed protection into their portfolios."