Subscribers iconSite access
Newsletter signup



home subscribe

Print
Email
Text size
Comment

Barclays Wealth looks to ‘kick-out’ investments

7 September 2009

Barclays Wealth has just revamped its investments with full capital protection, it now comes equipped with a ‘kick-out’ feature.

The group have released the FTSE generator at the beginning of this month as a replacement for older products that could not cope with the high demand.

They have launched this full capital protection fund with the prospect of early maturity, also known as ‘kicking-out’.

The fund is based on the FTSE 100, and the investor will receive six per cent gross for each year throughout the six-year fixed term, as long as the FTSE has at least remained at the same level that it started at.

The ‘kick-out’ is in effect after three years, if the fund matures and the FTSE has risen then the investor will receive 18 per cent gross.

This fund requires a minimum deposit of £10,000 and the investment will be in the account for three years before it is decided whether it has matured, if not then the account is review every six months.

This means the investor could receive a rolled up return after three years depending on the index performance.
At the end of the six-year term there is the possibility of receiving 36 per cent gross interest.

Barclays Wealth manager Lisa Chaudhuri, says: "Most kick-out products offer conditional capital protection but we have seen growing demand for a product which offers the prospect of an early maturity without risk to capital.

“FTSE Generator provides both key features with the condition that a kick-out can only occur after three years, although we believe the addition of six-monthly observation points - increasing the likelihood of an early maturity - should prove attractive to cautious investors."

Among other providers, no one offers such a scheme, although there are many similar products in the market.

Co-operative Investment launched their scheme early this year in collaboration with Credit Suisse, the plan is a capital protected guaranteed fund with a fixed six year term, the interest is determined on whether the FTSE 100 stays at its current level or rises to receive the rate of 40 per cent gross.

The minimum deposit for this account is £3,600, however unlike like Barclays Wealth there is no option of the ‘kick-out’.

Britannia building society also offers a similar service, with its six-year term and guaranteed capital protection bond.

The fund is based on the FTSE 100 and as long as the level does not drop below 75 per cent of the start value, the customer will be able to receive the five per cent annual gross rate. The minimum deposit for this investment is £500, but unlike Barclays Wealth there is no possibility for the money to mature early.

It seems very evident that Barclays have released a real eye opener on the financial market, although there are many similar products on the market currently, it is clear that they are taking the risk out of stocks and shares.

User comments

There are currently no comments on this post.

 

Advertisement

Related Content

Interesting links
 

Latest news

picture

With-profits bonus rates maintained by Standard Life 27 July 2010

Standard Life has maintained annual bonus rates on with-profits products, following a mid-year review of its UK with-profits range. more

 

Top ten  Top Ten Life Funds

Fund Offer 1y 3y 5y
UBS Life Structured Credit A 91.43 294.1 n/a n/a
Skandia Finland FIM Russia 11.14 70.1 -11.0 66.2
Zurich American Property AL G4 43.20 67.9 22.9 28.7
Skandia Finland Alfred Berg Ryssland 0.87 63.2 -21.3 n/a
Skandia Finland JPM New European 2.11 57.6 -18.2 61.1
Merch Inv Sanlam Global Financial S6 109.40 56.1 n/a n/a
Skandia Norway Alfred Berg Ryssland 0.87 50.7 n/a n/a
AXA Jupiter Emerging European Opportunities 221.10 50.7 -10.3 n/a
Winterthur JPM New Europe 193.50 50.4 n/a n/a
AXA Jupiter Emerging European Opportunities PSB 2.21 49.2 -5.1 58.5
 

Saving and banking in depth

picture

Child savings accounts: Free gift or short shrift? 29 May 2010

With the market for children’s savings accounts so diverse, Jenny Lowe warns parents not to be swayed by the ‘free’ gifts on offer. more

 

Guides

picture

Regular saving plans for children 30 May 2010

With a seemingly endless list of options available, Jenny Lowe reviews the best methods of regular savings planning for your children. more

 

Special Offers