View more on these topics

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.


Real world of mortgage fees

It was a former Conservative Chancellor who suggested he could see the green shoots of recovery while the UK was still in recession in the early 1990s. He was vilified although, in hindsight, he was probably correct.

Can lenders offer better direct deals with a clear conscience?

In the last few months, I have read many points of view regarding the credit crunch and predictions that it will continue for anywhere between 12 and 36 months, depending on which so-called expert you listen to. Current conditions are making it extremely difficult for us brokers to survive and although diversifying is a good thing, for some it may be a bit late in the day.

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.

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm