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The Barclays Defined Returns Plan Annual Kick-Out has matured early providing investors with a return of 13.5 per cent, plus their original investment. more

Are structured investment products the way forward?

01 October 2009 / by Rebecca Sargent

As retail structured products continue to be popular despite the collapse of Lehman Brothers more than a year ago, financial data collection firm Defaqto has launched a free guide to structured products, to help people decide if they really are the way forward.

The guide comes ahead of the Financial Services Authority's Wider Implications review of structured products that is due to be published shortly. The review will cover both Lehman-backed and non-Lehman-backed products sold previously, with a focus on product design, marketing, production and sale.

Structured products have proven popular during economic uncertainty, offering the potential of higher income during a low interest rate era, in addition to an element of capital protection.

Commenting, Fraser Donaldson, author of the guide said: "The recommendation of a structured product in the retail market is all about juggling the benefits and pitfalls of several investment concepts, and matching the outcomes with the risk profile and goals of the client."

The guide is aimed at potential investors and advisers, and looks at the separate components of structured products while highlighting the key issues and technicalities that need to be researched and understood.

Mr Donaldson hopes that the guide will give people, "enough knowledge to know what to look for, and how the subtleties of the terms of the product interact."

Click to learn more about structured products »

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Investing For Growth

Investing For Income

Product Name	Maximum Potential Return	Term	More Info
FTSE 100 Enhanced Kick Out Plan Investec Version	13.50% per annum	Up to 5 years	More Info >
Structured investment plan with the potential to mature after years 1, 2, 3 and 4. If the plan matures early it will return 13.5% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
FTSE Bonus Growth Plan	12.50% per annum	Up to 6 years	More Info >
6 year structured investment plan with the potential to mature early, returning the greater of 12.5% for each year the plan is in place, or the highest return from the FTSE, measured daily. Also available for Stocks & Shares ISA and ISA transfer			More Info >
Early Bonus Plan	11.00% per annum	Up to 6 years	More Info >
A 6 year structured investment plan with the potential to mature early, paying 11% for every year the plan is active. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
FTSE 5 Quarterly Defensive Plan	4.25% per quarter	5 Years	More Info >
A 5 year structured investment plan with the potential to return 4.25% x the number of quarters the Plan has been active.			More Info >
FTSE Booster Plan	60%	6 years	More Info >
6 year structured investment plan that offers a fixed growth return of 60% even if the FTSE 100 falls. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
FTSE 100 Geared Returns Plan	80%	5 years	More Info >
5 year structured investment plan with the potential to receive a defined return of 80%. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
Growth Plan	60%	5 years	More Info >
A 5 year structured investment plan which aims to provide a defined return of 60% at maturity. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
FTSE 100 Accelerated Growth Plan	No limit	5 years	More Info >
5 year structured investment plan with the potential to return 2.2 x any growth in the FTSE 100 Index after 5 years. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
FTSE Protected Growth Plan	35%	6 years	More Info >
A 6 year capital protected structured investment plan that offers a potential early exit return of 35%. Also available for Stocks & Shares ISA and ISA transfer.			More Info >
Inflation Protected Deposit Bond	RPI Tracker	5 years	More Info >
5 year capital protected structured deposit plan offering 100% of any growth in the Retail Prices Index with no cap (minimum return of 16%). Also available for Cash ISA and Cash ISA transfer.			More Info >
FTSE 100 3 Year Deposit Plan	19%	3 years	More Info >
3 year capital protected deposit plan with the potential to receive a defined return of 19%. Also available for Cash ISA and Cash ISA transfer.			More Info >
FTSE 100 Deposit Growth Plan	No limit	5 years	More Info >
5 year capital protected structured deposit plan which aims to return 1.0 x any FTSE 100 growth. Also available for Cash ISA and Cash ISA transfer.			More Info >
Enhanced Growth Plan	40%	6 years	More Info >
6 year capital protected structured deposit plan which aims to return 5 x any FTSE 100 growth capped at 40%. Also available for Cash ISA and Cash ISA transfer.			More Info >
Growth Deposit Bond	50%	6 years	More Info >
6 year capital protected structured deposit plan which returns the greater of 8.00% or 1 x any FTSE 100 growth, capped at 50%. Also available for Cash ISA and Cash ISA transfer.			More Info >
Annual Locked-In Return Plan	36%	6 years	More Info >
6 year capital protected structured deposit plan which aims to return 6% annual growth capped at 36%. Also available for Cash ISA and Cash ISA transfer.			More Info >
FTSE 100 Kick Out Deposit Plan - Option 1	6.00% per annum	Up to 5 years	More Info >
Capital protected structured deposit plan with the potential to mature after years 1, 2, 3, and 4. If the plan matures early it will return 6% times the number of years the plan has been in force. Also available for Cash ISA and Cash ISA transfer.			More Info >
FTSE 100 Kick Out Deposit Plan - Option 2	6.25% per annum	Up to 5 years	More Info >
Capital protected deposit plan with the potential to mature after years 2, 3, 4 and 5. If the plan matures early it will return 6.25% times the number of years the plan has been in force. Also available for Cash ISA and Cash ISA transfer.			More Info >
Moneybuilder	5.75% per annum	6 years	More Info >
A 6 Year capital protected structured deposit growth plan with the potential to pay 5.75% pa, up to a maximum of 34.5% over 6 years at maturity. Also available for Cash ISA and ISA Transfer.			More Info >

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.

Product Name	Income Yield	More Info
FTSE 100 Bonus Income Plan	7.50% per annum	More Info >
5 year structured investment plan paying an income of 7.50% annually, including a potential annual bonus of 0.5%. Also available as a monthly income option, Stocks & Shares ISA investment and ISA transfer.		More Info >
Income Builder	7.50% per annum	More Info >
A 5 years and 3 weeks structured investment plan paying a potential maximum quarterly income of 1.875% (equivalent to 7.50% per year). Also available for Stocks & Shares ISA and ISA transfer.		More Info >
FTSE Income Deposit Plan	7.25% per annum	More Info >
A 6 year capital protected structured deposit plan with the potential to pay 7.25% annual income. Backed by the Royal Bank of Scotland. Also available as a cash ISA and for ISA transfer.		More Info >
FTSE Income Plan	5.80% per annum	More Info >
3 year structured income plan with a fixed quarterly income return of 1.45% gross. Equivalent to 5.80% gross per year. Not available for ISA investment.		More Info >