Barclays Wealth has announced that one of its structured products has matured earlier after only one year, delivering a return of 13.5 per cent to investor as well as their original investment.
Launched back in December 2008, the Barclays Defined Returns Plan Annual Kick-Out (AKO) automatically matured and delivered its stated return when the FTSE 100 closed above the required strike level of 4034.13 on 17 February 2009.
To coincide with the early maturity of this plan, Barclays Wealth has now introduced a one-off investment – a maturity edition of the Defined Return Plan AKO – targeted at investors looking to re-invest their capital.
The five-year investment, which is only available to investors of the original product, offers a fixed return of eight per cent for every year that it is in force and is designed to automatically mature on any anniversary when the FTSE 100 is at or above its starting level. If however the index falls below 50 per cent of its starting level and is below its starting level at maturity, investors will lose capital on a 1:1 basis.
Commenting, Lisa Chaudhuri, vice president at Barclays Wealth said: "With many industry commentators doubting the strength of the recovery, Annual Kick-Outs continue to be in high demand from investors looking for products that take advantage of moderate growth.
"And while investors may have been able to find superior returns over the last twelve months by taking on more risk, a pay-out of 13.5% after just one year, coupled with a strong buffer against potential loss, should be a pleasing return for any investor."
© Fair Investment Company Ltd
Apply for the Barclays Defined Returns Plan Annual Kick-Out (February 2010 addition) here