Barclays Wealth reissues Defined Returns Plan

Barclays Wealth is reissuing its popular Defined Returns Plan (Capital Protected) with three investment options for cautious investors seeking fixed returns and full capital protection.

DRP CP launched on 4 August with three-, four-, and five-year options, each of which will deliver its respective return provided the FTSE 100 is at or above its starting level at maturity.

The three-year option offers a 15% return at the end of its term; the four-year option a 26% return; and the five-year option a 40% return.

Each option offers full capital protection at maturity irrespective of the performance of the FTSE 100.

The launch of DRP CP follows the recent reissue of Barclays Wealth's DRP Annual Kick-Out investment, which offers less risk averse investors the prospect of an early return.

Launched on 27 July, the DRP AKO offers two options:

The AKO 100 option will automatically mature and deliver its rolled-up return on the first annual anniversary where the FTSE 100 is either at the same level or higher than its starting point. For instance, if the FTSE 100 has not, on the plan's first anniversary, fallen in value, investors will receive a return of 8%; if this point is reached at the second anniversary, investors receive 16%; and so on up to a maximum return of 40% in the fifth and final year.

The AKO 90 option will deliver its investment return on the first anniversary where the FTSE 100 exceeds 90% of its starting level. In return for the increased prospect of an early return, investors receive 6% for each year the investment is in force.

In either case, if there is no return after five years, investors will receive back their full capital, provided the index at maturity is not below 50% of its starting level. In the event of the index having fallen by more than 50% at maturity, capital is lost 1:1 with the index.

Lisa Chaudhuri, manager, Barclays Wealth, says: "While markets may have become less volatile in recent weeks, the mixed economic picture means a great deal of uncertainty remains and investors are wary of assuming too much risk. As a result of this we continue to see high demand for investments offering both the prospect of a fixed return and full or partial capital protection, such as our Defined Returns investments which have been specifically designed to offer investors a range of options to suit their risk profile and investment horizons."