Barclays Wealth structured product matures early with 13.5% return

Barclays Wealth’s Defined Returns Plan Annual Kick-Out has matured after just one year, returning 13.5% to investors as well as their original capital.
The DRP AKO, which launched in December 2008, required the FTSE 100 to be at its 17 February 2009 strike level of 4034.13 in order to kick-out on its first anniversary. When the Index closed above this level on 17 February 2010, the plan automatically matured and delivered its stated 13.5% return to investors.
To coincide with this early maturity Barclays Wealth has launched a one-off investment, the Defined Return Plan AKO – Maturity Edition, designed to appeal to those looking to re-invest their capital. The five-year investment, which is only available to investors in the previous product, offers a fixed return of 8% for every year it is in force and will automatically mature on any anniversary where the FTSE 100 is at or above its starting level. As with the previous product, investors’ capital is at risk at any time during the term if the Index has fallen below 50% of its starting level and is below its starting level at maturity, then investor’s capital is lost on a one for one basis with the change in the Index level.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “With many industry commentators doubting the strength of the recovery, Annual Kick-Outs continue to be in high demand from investors looking for products that take advantage of moderate growth. And while investors may have been able to find superior returns over the last twelve months by taking on more risk, a pay-out of 13.5% after just one year, coupled with a strong buffer against potential loss, should be a pleasing return for any investor.”