UK-based Barclays Wealth has announced that it is reissuing its protected investment range with broadly the same terms as before other than one significant change. The company also announced the introduction of a monthly income option on its Regular Income Bond.
The new range, which will be launching on March 9, 2009, consists of three growth investments and an income plan aimed at investors willing to accept some risk to their capital in return for a much higher rate of income than currently offered by cash on deposit, said Barclays.
The FTSE 100-linked Regular Income Bond pays a fixed annual rate of 7.5% for five years, which investors seeking frequent income payments can now choose to receive monthly instead of quarterly. An annual payment option is also available.
Other investments in the range include the five-year Protected FTSE Plan, which continues to offer two times the first 20% rise in the index up to a maximum return of 40%, said Barclays. The plan offers full capital protection at maturity regardless of index performance.
Barclays added that investors seeking fixed returns can alternatively choose the six-year Minimum Return Plan, which offers a fixed return of 15% plus an additional 18% return as long as the index never trades below 60% of its starting level.
For investors seeking to accelerate index gains the range offers the Super Tracker, a three- or five-year investment which provides geared exposure to the FTSE 100. The three-year option will return four times the rise in the index up to a maximum return of 50%, while the five-year option offers four times the rise capped at 100%. Investors’ full capital will be repaid unless the FTSE 100 falls to a level more than 50% below its starting level at any time during the term and is lower than its starting level at the maturity date, in which case capital is lost 1:1 with the index, according to Barclays.
All Barclays Wealth protected investments marketed through independent financial advisers are issued by Barclays Bank. The investments can be sold prior to maturity but their value could be less than the amount invested.
Colin Dickie, director of Barclays Wealth, said: The Regular Income Bond has been a popular investment for some time but with cash rates so low demand has been growing for an option which allows investors to receive the income more frequently.
The range offers a number of options for investors with different risk profiles and in each case can help build into portfolios an element of certainty at a time when predictability is in short supply.
