Barclays reissues Minimum Return Plan

Barclays Wealth has improved the balance of its Minimum Return Plan protected investment, as investors seek higher yielding alternatives to deposit accounts in the low interest rate environment.

Launching today, Minimum Return is a six-year investment offering a fixed payment of 21% at maturity (up 3% from the preceding issue), plus an additional 21% should the FTSE 100 never trade below 60% of the strike level throughout the term, as measured at the close each day. This investment offers full capital protection at maturity.

Also being reissued is the five-year Regular Income Bond, which is again linked to the FTSE 100 and offers an annual income of 7.6% or a monthly income of 0.62%. Capital will be returned in full unless the FTSE falls by more than 50% and remains lower than its starting level at maturity. Should this occur, capital will reduce 1:1 in line with the index performance.

Rounding out the new issues is the five-year Protected FTSE Plan, which offers two times the first 25% rise in the FTSE, subject to a maximum of 50%. The product's lock-in feature means that, if the FTSE closes at 25% or more above the strike level during the final year, investors secure at least a 25% payout (investors will receive the greater of the lock-in or the multiplied rise in the index at maturity). This investment offers full capital protection at maturity.

Lisa Chaudhuri, manager, Barclays Wealth, says: "The low interest rate environment continues to be problematic for investors who want an immediate attractive return. It is clear that this investor base will need to consider locking into a fixed term to achieve higher return potential. For those willing to accept greater risk, our Regular Income Bond merits consideration due to the ability to lock into a high fixed rate albeit with risk to capital. With rates expected to remain low for the foreseeable future we expect demand for these products to be high."