Barclays launches new Regular Income Bond

Barclays is launching a new investment plan paying an annual income of 7.25 per cent as IFA demand for products with quantifiable risk / return profiles continues to mount.

Launching on January 18, the five-year Regular Income Bond – also available as a growth option - is linked to the Dow Jones Stoxx 50 Index, which offers exposure to 50 ‘supersector’ stocks across Europe. The plan, which is open for investment until 29 February, offers investors an income of 7.25 per cent per annum or 1.8 per cent per quarter.

Investors’ full capital will be returned unless the index falls by 40 per cent and fails to recover to its initial level by maturity, in which case capital is lost 1:1 with the index. Income is paid gross and is tax-free inside an ISA or Pep.

The plan also features a growth option which offers investors a return of up to 50 per cent at maturity. Both capital and final growth returns will be received in full unless the Dow Jones Stoxx50 Index falls by 40 per cent or more below its starting level and fails to recover at maturity. Should this occur both capital and growth are at risk on a 1:1 basis.

Lisa Chaudhuri from Barclays Wealth says: “Demand for income producing plans has not abated and there is clear need for products that offer a good level of regular income with a quantifiable risk/reward profile. We always aim to deliver to IFAs products that they understand and trust and we believe this latest issue will prove to be as popular as the last, with advisers looking to lock-in their clients’ gains from similar products currently maturing in the market.”