- Six-year product backed by Barclays Bank Plc
- Two options paying either 9.1% or 8.1% for every year the investment is in force
- Potential early kick-out from the first year on AKO 100
- Capital will be reduced by a minimum of 50% if the Index closes below 50% of its starting level at maturity
Barclays Wealth is reissuing its popular Defined Returns Plan Annual Kick-Out which gives investors the chance of an attractive return after just one or three years.
The August AKO 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 9.1% for every year the investment is in force. For example, if the FTSE is at or above its starting level at its first anniversary, investors will receive 9.1% and their capital will be repaid. If this occurs on its second anniversary, investors will receive 18.2%; and so on up to 54.6% on its sixth and final anniversary.
The second option, the AKO 85, will deliver its stated return on any anniversary – from the third onwards – where the FTSE is at or above 85% of its starting level. This option delivers a return of 8.1% 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 lose capital if the Index has breached the 50% barrier at maturity.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “Our Kick-Out products continue to be popular with investors looking for an attractive and pre-defined return with the chance of a payout after a very short period of time. With recent commentary intimating that Bank of England rates will have to stay low for the foreseeable future, there is increasing interest in these products from investors looking at alternatives for their savings.”