Barclays Wealth kick-out investment with capital protection

Barclays Wealth is launching FTSE Generator - a new protected investment offering investors full capital protection and the prospect of an early maturity.

Available now, the six-year deposit-based investment comes with an early maturity feature which means investors could receive a rolled-up return after three years, depending on index performance. A ‘kick-out' will occur on the first observation date (starting from the investment's third anniversary and occurring every six months thereafter) where the FTSE 100 is equal to, or higher than, its starting level. For each year the investment is in force investors receive a return of 6%; if, for example, the product matures on the third anniversary, the return would be 18%.

If there is no return after six years, investors receive back all of their original capital irrespective of the level of the FTSE 100.

The minimum investment is £10,000.

Full details of the Bond can be found at barclayswealthprotectedinvestments.com

Lisa Chaudhuri, manager, Barclays Wealth, says: "Most kick-out products offer conditional capital protection but we have seen growing demand for a product which offers the prospect of an early maturity without risk to capital. FTSE Generator provides both key features with the condition that a kick-out can only occur after three years, although we believe the addition of six-monthly observation points - increasing the likelihood of an early maturity - should prove attractive to cautious investors. As an offshore deposit-based investment, we believe this product should offer further reassurance to investors concerned about recent industry events."