Barclays has launched enhanced income and growth products that are linked to major equity indices in...
Barclays has launched enhanced income and growth products that are linked to major equity indices into its offshore deposit range.
Both have five-year lives and offer full capital protection if held until maturity. Each is available in dollars, sterling and euro.
The growth product is a five-year deposit offering a percentage of the rise in the value of the FTSE 100 index, subject to averaging in the final year.
The percentage return will be 125% of any rise in the value of the investment index for sterling investors, 110% of any rise for dollar investors and 85% of any increase for euro investors.
The enhanced income product is a five-year deposit linked to the performance of a basket of indices including FTSE 100, S&P 500 and DJ EuroStoxx 50.
This product offers a guaranteed annual coupon at the end of each year, plus a bonus coupon dependent upon the performance of the basket.
The currency will also affect the coupon paid. Sterling and dollar investments, for example, have an annual coupon of 2% plus a bonus coupon of 4.75% if, on the coupon payment date, all indices are above their value recorded at the investment date.
For euro investments, there will be an annual coupon of 0.50%, plus a bonus coupon of 5.50% if, on the coupon payment date, all indices are above their value recorded at the investment date.
The multi-currency deposit series is expected to be popular with investors that separately hold cash in an offshore bank account or life bond.
David MacDonald, associate director, Barclays Investor Solutions, said: "This latest development brings further options to advisers either using or considering offshore life assurance bond investments. Advisers have the choice of growth or annual income-based products to cater to the varying needs of their client base.
"These deposits continue to be specifically structured to sit within an offshore wrapper and avoid the double-charging issue (wrapper and product fees) inherent in some of the other investment choices." key points
Barclays launches enhanced income and growth products
Both are available in euros, sterling and dollars
Products available from 2 October to 28 November
Penalty payments and enforcement policy
Fees as low as 0.04%
Women and young people adversely affected
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