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Barclays reissues defined returns

Barclays Wealth is reissuing the defined returns annual kick-out (AKO) plan with a new investment option, allowing advisers to tailor the plans to suit different risk/reward profiles.

The plan’s AKO 100 option offers a return of 12 per cent for each year the plan is in force. It will kick-out and deliver its return on any anniversary where the FTSE 100 matches or exceeds its starting level. The AKO 80 option offers a return of 7 per cent for each year the plan is in force. It will kick-out and deliver its return on any anniversary where the FTSE 100 is either the same or higher than 80 per cent of its starting level.

With both options, if there is no automatic maturity within the five-year term, capital will still be repaid in full unless the index falls by more than 50 per cent and is below the starting level at maturity. Capital loss is on a one to one basis in line with the index.

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