Barclays Wealth reissues DRP Annual Kick-Out with improved rates

Barclays Wealth is reissuing its popular Defined Returns Plan Annual Kick-Out which gives investors the chance of a return – through its early disposal feature – after just one year.
The June AKO has two options:
The AKO 100’s value will be realised on any anniversary – from the first onwards – where the FTSE 100 is at or above its starting level. This option offers investors a return of 10% for every year the investment is in force. For example, if the FTSE is at or above its starting level at its first anniversary, investors will receive 10%; if this occurs on its second anniversary, investors will receive 20%; and so on up to 60% on its sixth and final anniversary.
The second option, the AKO 80, will deliver its stated return on any anniversary – from the second onwards – where the FTSE is at or above 80% of its starting level. This option delivers a return of 7.5% for every year the investment is in force.
Capital will be reduced if the index closes below 50% of its starting level at maturity. In both options, if there has been no early disposal after six years, investors will receive back their full capital providing the Index has not breached the 50% barrier at maturity.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “Now that issue regarding the HMRC’s position on the ‘Isability’ of kick-out products has been resolved, it is the perfect time for investors to take advantage of the market’s volatility by investing in a product that offers more upside that previously available. Our new AKO also offers a very attractive fixed return and, in the case of the AKO 100 option, could offer an early disposal after just one year.  Something we are very hopeful of seeing come to fruition with the corresponding investment from a just a year ago.  So this new offer is a well-aligned replacement as well as giving advisers a new money opportunity to advise upon.
“Our new issue will also return investors’ capital at maturity providing the FTSE does not experience a significant fall over the term. With the crisis from the eurozone creating volatility in markets around the globe, this is reassurance that few investors should be willing to sacrifice.”