The new range opens for investment on September 1 and is designed for investors seeking growth, income or recovery of previous capital losses.
The protected FTSE plan offers investors 1.5 times the rise in the FTSE 100 index up to a maximum return of either 27 per cent through a three-year option or 60 per cent through a five-year option. Investors can also choose early maturity which will deliver a 30 per cent return after two and a half years if the index at that point is 30 per cent or more above its initial starting level. If the index grows by less than that amount after two and a half years, the plan continues on the same terms as the five-year option.
The six-year minimum return plan offers a fixed return of 18 per cent at maturity plus a potential additional payment of 26 per cent if the FTSE 100 never trades below 60 per cent of the initial index level. The investment offers full capital protection if held until maturity irrespective of index performance.
Barclays has also extended investment term options on its super tracker product. The three year option offers three times the rise of FTSE 100 up to 40 per cent or five times the index rise up to 75 per cent. Full capital will be returned unless the FTSE 100 falls by more than 50 per cent and fails to recover by maturity, in which case capital is lost 1:1 with the index.
The regular income bond is an income-only investment linked to the Dow Jones Stoxx50 Index which gives exposure to 50 ‘supersector’ stocks across Europe. The five-year bond offers an annual gross income of 7.25 per cent or a quarterly income of 1.78 per cent. Full capital will be returned unless the index falls by 40 per cent and is not equal to or higher than the initial index level at maturity in which case capital is lost 1:1 with the index.
Barclays Wealth director Colin Dickie says: “We think advisers should be particularly mindful about investors close to retirement or in drawdown mode where pension pots might be much reduced. This is where the strength of the super tracker can prevail over alternative recovery strategies. Additionally this time round we have added averaging over the final month of the investment life; this we believe is a highly desirable customer benefit and compliments our use of a high multiplier in calculating the final return.”