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Barclays kicks out

Barclays Wealth has introduced a FTSE 100-linked capital -protected bond that has the potential to mature each year during its five-year term.

Issue Y8 of the defined returns plan -annual kick-out provides potential returns equivalent to 10 per cent a year, depending on the performance of the index.
If the index level on each anniversary date is at or above its initial level, the product terminates, paying 10 per cent of the original investment in year one, 20 per cent in year two, 30 per cent in year four or 50 per cent in year five.

Investors will also receive their original capital back at maturity, unless the index falls by at least 50 per cent during the term and does not subsequently return to at least its original value by maturity.

If this safety net is breached, investors will lose 1 per cent of their original investment for every 1 per cent fall in the index.

This product may be of interest to investors who are looking for a degree of capital protection and potential fixed returns before the five-year term has ended. However, it would be unsuitable for those who are not prepared to tie up their money for five years, as there is a chance the product could run full term.

According to the product database on the Structured Retail Products adviser website, this product is unique in its five-year term and annual kick-out options.

A direct product – Dunbar Bank’s guaranteed account 13 is a FTSE 100 linked five-year kick-out plan but has the potential to mature from years two to four on the same basis as the Barclays Wealth product. However, the guaranteed account cannot mature in year one and the returns in year five are based on 100 per cent of the growth in the index rather than a fixed return.


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Changing fortunes

This week Credit Suisse appointed its third head of global equities inside two years as Kim Goodwin quit the firm to return to the US in a consultancy role.

Neptune video: Indian valuations and Modi’s pro-investment agenda

Kunal Desai, Head of Indian Equities, discusses his expectations for the Indian market and highlights the key indicators that he is watching for 2015.

In the video, Kunal addresses:

• Indian equity valuations and the importance of stock selection in gaining exposure to the earnings upgrade cycle

• The BJP’s strengthening ambition in its pro-reform, pro-investment agenda


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