View more on these topics

Barclays provides kick-out choice

The Barclays defined returns plan annual kick out February 2010 edition is a six-year FTSE-100 linked structured product with two payment options. Both the AKO 100 option and AKO 90 option return the equivalent of 7.75 per cent a year and have early maturity features.

The early maturity feature can be triggered from year two for the AKO 100 option and from year three for the AKO 90 option. Both options also return investors’ capital in full if early maturity is not triggered, provided the index does not fall by more than 50 per cent by the final day of the term. If this safety net is breached, investors will lose 1 per cent for each 1 per cent fall in the index.

Investors in the AKO 100 option will receive 15.5 per cent growth at the end of year two, provided the index is at or above its initial value. If the index is lower, the product will continue until the end of year three, when 23.25 per cent growth will be payable on the same basis. The potential returns for the following years are 31 per cent, 38.75 per cent or 46.5 per cent respectively.

Investors in the AKO 90 option will receive 23.25 growth at the end of year three, provided the index is at least 90 per cent of its initial value. If the index is lower, the product will roll over to the next year, and so on throughout the term, paying the same level of returns as the AKA 100 option.

IFA website Structured Product Review says this plan is an attractive proposition due to the fixed returns on offer without any need for growth in the index, and even if the index falls by up to 10 per cent where the AKO 90 option is chosen. The firm also says it has an appealing capital protection barrier.

However, the return of capital is not guaranteed and the uncertainty as to when the product will mature not suit all investors.


Knight firm rebrands and recruits ex-FSA director

Checkmate Mortgages has appointed former FSA director Ronnie Baird and ex-Stroud & Swindon chief executive David Hill to its board as it rebrands to Portillion. The firm has also signalled its intention to collect retail deposits, with the creation of a savings director role in a raft of new appointments. Baird joins as senior non-executive […]

Hung result would block reforms

A hung Parliament would be “a disaster” for pension reform, according to Cicero Consulting. Director Iain Anderson said: “No party would want to coalesce for long. You would not get a Budget through, the regulatory architecture reforms would not get through and you would have the Conservatives wanting to review Nest and Labour not letting […]

Lending falls to lowest level in 10 years

Gross mortgage lending fell to its lowest level for nearly 10 years in January, according to the Council of Mortgage Lenders. The figures show that lending fell by 32 per cent from £13.4bn in December 2009 to £9.1bn in January this year. The CML says the drop was due to borrowers rushing to complete property […]

InFocus - thumbnail

In Focus — February 2015

Jelf Employee Benefits looks at the issue of paying anaesthetist fees when the patient had no chance to discuss or agree to them prior to care; and provides recommendations for avoiding this scenario.


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