Barclays Wealth has reissued its Defined Returns plan Annual Kick-Out (AKO) with improved rates.
The plan 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.
Meanwhile, 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.
Lisa Chaudhuri, vice president, Barclays Wealth, says: "Now the 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.
"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."
The plan is open for investment until 30 July 2010, with a minimum investment of £5,100. It is available as ISA, SIPP or SSAS, with commission at 3%.
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