Barclays Wealth has announced it is reissuing its popular Defined Returns Plan Annual Kick-Out (AKO), which has the potential to provide investors with an attractive return after only two years.
As with previous issues, the February edition of the structured product has two options to cater for a range of investors.
The Barclays Defined Returns Plan AKO 100 is designed to automatically mature and deliver its stated return on any annual anniversary – from the second year onwards – when the FTSE 100 is at or above its starting level. For every year the plan is in force, investors will receive a return of 7.75 per cent – for instance, if it matures on its second anniversary investors will receive 15.5 per cent.
Meanwhile, the Barclays Defined Returns Plan AKO 90 also delivers a 7.75 per cent return for every year that the investment is held and will automatically mature from the third year onwards if the index is at or above 90 per cent of its startling level.
However, if both plans fail to mature early after six years, investors will receive back their original investment in full, provided the index does not close below 50 per cent of its starting level at maturity. If this proves to be the case, capital will be reduced on a 1:1 basis.
Commenting, Lisa Chaudhuri, vice president at Barclays Wealth, believes these products offer "an appealing alternative to investors".
"With many industry commentators still cautious over potential market growth, investors continue to seek products which can deliver an attractive return even if markets remain flat.
"Kick-Out products continue to be in high demand with investors who are reluctant to leave their capital languishing in low-paying savings accounts but also nervous of going straight into the equity markets," she said.
© Fair Investment Company Ltd