Barclays has launched a guaranteed structured deposit account which gives investors exposure to both...
Barclays has launched a guaranteed structured deposit account which gives investors exposure to both the property and equity markets.
The product is linked to three equity indices the FTSE 100, S&P 500 and the Dow Jones Eurostoxx 50 as well as two property indices investing in either Europe or Japan.
David MacDonald, associate director of Barclays Investor Solutions, said: "The choice to use property indices as well as equity has been driven by our advisers who said their clients wanted this exposure. It was decided to use property indexes in both Europe and Japan as real estate in the UK looks overvalued."
Investors will have a choice of a three-year or five-year deposit product which are available in sterling, dollar and euro currencies. The minimum investment is £10,000.
For the three-year option, both the sterling and dollar versions offer a guaranteed return of 10%, while the euro version offers 6%. However, if the return is greater than this the investor will receive 50% of the value of the investment.
In the five-year product the sterling option has a participation rate of 130%, the dollar has a participation rate of 145% and the euro has a participation rate of 100%.
The deposit accounts are only available through offshore life bonds from certain life companies including Norwich Union International, Friends Provident International, Royal Skandia, Axa, Irish Life or Canada Life International.
MacDonald added: "Offshore life assurance bonds remain one of the few investments where investors can tap into a gross roll-up savings environment and our new product series will appeal greatly to this market."
Intermediaries receive commission for the product from the life company. This rate will vary depending on the group the product is bought from.
Barclays launches guaranteed structured deposit accounts
Product linked to three equity and two property indices
Minimum investment is £10,000
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November