Barclays Wealth launches new protected investments

Barclays Wealth is launching new issues of its Minimum Return Plan, Protected FTSE Plan and UK and US Super Trackers after exceptional demand led to the early closure of the preceding range.

Launching today, Minimum Return is a six-year investment offering a fixed payment of 18%, plus an additional 24% at maturity if the FTSE 100 index never trades below 60% of the strike level throughout the term. This investment offers full capital protection if held to maturity.

Also being reissued is the five-year Protected FTSE Plan, which offers two times the rise of the FTSE 100 up to a maximum return of 45%. This investment offers a lock-in feature which means that, if the index closes at 22.5% or more above the strike level at any point during the final year, investors will get a return of at least 22.5%. At maturity investors will receive the greater of the lock-in rate or the multiplied rise in the index. This investment offers full capital protection at maturity.

Completing the new issues are the UK and US Super Trackers. The UK Super Tracker has two options offering three times the rise in the FTSE 100 up to a maximum return of 33% (three-year option) or three times the rise up to 75% (five-year option). The US Super Tracker is linked to the S&P 500 and offers three times the rise in the index subject to a maximum return of 66%. In all three cases investors will receive back their original capital unless the index falls by more than 50% and is lower than its starting level at maturity, in which case capital is reduced on a 1:1 basis. This reflects the greater risk and return profile of the product.

Lisa Chaudhuri, manager, Barclays Wealth, says: "Demand has been exceptionally high for these products as investors have sought to secure either fixed rates or the chance to accelerate gains from markets which may remain fairly flat over the coming years. With interest rates expected to remain low for the foreseeable future we believe investors will continue to look for ways to gain attractive returns without taking the risks connected with unprotected equities."