Barclays Wealth AKO kicks-out early
The early exit feature of Barclays Wealth’s Defined Returns Plan Annual Kick-Out (AKO) has been activated, delivering its return of 12% for its AKO 100 option and 7% for its AKO 80 option after just one year.
The DRP AKO 80, which was launched in February 2009, required the FTSE 100 to be at 80% of its strike rate of 4,156.00 in order to deliver its stated return on its first anniversary; and the AKO 100 needed the FTSE to be at the same level as its strike rate to automatically kick out. When the Index closed above this strike level on 26th April, the values of both options were realised and they delivered their stated returns to investors.
Meanwhile, the April AKO is still available for new business with two options. The AKO 100’s value will be realised on any anniversary – from the second onwards – where the FTSE 100 is at or above its starting level and will return 7% for every year the investment has been in force. The second option, the AKO 90, will deliver its stated return on any anniversary – from the third onwards – where the FTSE is at or above 90% of its starting level. As with the AKO 100, this option delivers a return of 7% for every year the investment is in force. Capital will be reduced if the index closes below 50% of its starting level at anytime during the term and is below the starting level at maturity.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “This is another example of a structured product achieving exactly what it set out to do for investors, delivering a clearly defined return over a specific period of time. While investors could have received a greater return by investing directly in the underlying index had they perfectly timed their entry and exit, we have seen over the last weeks market volatility rear its head again and so a 12% return over one year is particularly gratifying when combined with an element of downside protection – a feature that would be welcome in any private investor’s portfolio in the current climate.”