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Barclays structured product matures early

05 November 2009 / by Andy Davies

Barclays Wealth has announced that a plan in its structured product range has matured early after one year, delivering a 12 per cent return to investors.

Launched last August, Barclays' Defined Returns Annual Kick Out plan required the FTSE 100 to be at its 20 October strike level of 4282.67 in order to kick-out on its first anniversary.

With the index closing above this level on 20 October, the plan automatically matured to deliver the stated return of 12 per cent to investors, which was in addition to the return of their initial investment.

Welcoming the success of this plan, Lisa Chaudhuri, manager at Barclays Wealth, believes the early maturity further highlights the benefit of structured products.

"This latest maturity is another example of a structured product delivering what it set out to do for investors. With doubts over the sustainability of the current rally, structured products offer investors more certainty in terms of their potential investment return, plus, of course, considerable comfort in the form of conditional capital protection.," she said.

Following the success of its Defined Returns Annual Kick Out plan, Barclays is now launching a Maturity Edition – offering a return of eight per cent, aimed at existing investors who are looking to re-invest their money.

Commenting on the new plan, Ms Chaudhuri said: "The special maturity option is likely to appeal to roll over investors as they have had a good experience thus far and with this new edition maintaining a healthy premium over savings rates, the attractiveness to commit for up to a further five years is self evident."

© Fair Investment Company Ltd


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