View more on these topics

Barclays Wealth brings income to the table

Barclays Wealth has brought out the November 2009 edition of the regular income bond

This structured products has a six-year term and provides annual income of 6.25 per cent or monthly income of 0.51 per cent throughout the term. The return of capital at the end of the term depends on the performance of the FTSE 100 index.

A full capital return is paid provided the index does not fall by more than 50 per cent during the term and fails to recover to at least its initial value by the final day of the term. If this safety net is breached, investors will lose 1 per cent of their original investment for each 1 per cent fall in the index.

According to the Structured Retail Products adviser website, option two of Gilliat Financial Solutions’ income series issue 2 is a FTSE 100 linked income plan which has a term of six years and two weeks. This product offers a fixed income of 2 per cent a year plus a potential bonus of 5.72 that is dependent on the index performance. This bonus brings the maximum income potential up to 7.72 per cent a year, which is higher than the Barclays Wealth plan.

However, the Gilliat product has no monthly income option. It will also protect only 90 per cent of the original capital if the index falls by 10 to 50 per cent during the term, whereas the Barclays Wealth product would provide 100 per cent capital protection in this situation.

Choosing between the products would depend on whether investors prefer the Gilliat product’s potential for higher returns or the greater capital protection of the Barclays product.


Tobin tax retreat

Prime Minister Gordon Brown has backtracked on his proposals for a Tobin tax after widespread international criticism of the plan.


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