The defined returns plan, can offer investors a fixed return of either 20% or 42.5% provided the level of the FTSE 100 at maturity is equal to or higher than its level at the starting date. Both options are capital protected if held to maturity.
The plan, which closes on February 7, 2007 will also feature a five-year kick-out option which will offer investors a 10% annual return for each year the plan is in force. If the index is either the same or higher than its starting level on any annual anniversary, the plan will automatically mature and deliver the accumulated return. In the event of the FTSE 100 being lower at maturity than it was at the starting date, investors will receive back all of their original investment unless the index falls by 50% and fails to recover to its initial level by maturity, in which case capital is lost 1:1 with the index.
Colin Dickie, director of Barclays Wealth, said: The defined returns plan continues to be very popular with advisers and we expect the enhanced kick-out option to generate a great deal of interest. The plan offers investors the best of both worlds and we continue to work hard on designing products that reflect market conditions. Advisers’ jobs are particularly difficult right now and we hope that plans such as this go some way to making their lives easier.
