Barclays latest Defined Returns Plan enhances terms and safety

Barclays Wealth is enhancing the terms of its Defined Returns Plan (Capital Protection) and introducing a new form of safety on its DRP (Annual Kick-Out) as investors continue to turn to structured products to add performance and protection into their portfolios.

Launching on 13 April, the latest issue of the DRP CP offers three options for investors seeking a fixed return from the FTSE 100 and full capital protection at maturity.

DRP CP offers:

Three-year option - 12%
Four-year option - 26%
Five-year option - 40%

All three investments will deliver their stated return provided the FTSE 100 is either at, or above, its starting level at maturity.

Also launching on 13 April is the latest issue of the Defined Returns Plan Annual Kick-Out. This offers two options to suit investors with different risk/reward profiles.

AKO 100 will automatically mature and deliver its return on the first annual anniversary where the FTSE 100 is either at the same level or higher than its starting point. If this occurs on the first anniversary, investors will receive a return of 11%; if it occurs on the second anniversary, investors receive 22%, and so on until maturity.

AKO 80 is designed to suit investors seeking an increased likelihood of an early return. This option will deliver its return on the first anniversary where the FTSE 100 exceeds 80% of its starting level. Investors receive a return of 6.25% for each year the investment is in force.

If there is no early maturity both options will repay investors' full capital after five years as long as the index at that point is not below 50% of its starting level. This is a change from previous issues where the capital at risk barrier was observed throughout the life of the plan.

In the event of the index having fallen by more than 50% at maturity, capital is lost 1:1 with the index.

Colin Dickie, director, Barclays Wealth, says: "Investments with fixed returns continue to be extremely popular and the latest issues of our Defined Returns plans offer several competitive options to suit most types of risk profiles. Our DRP CP offers highly attractive terms particularly given that it provides full capital protection at maturity while the Annual Kick-Out now observes its capital at risk barrier only at maturity, adding an improved element of safety into one of our most popular investments."