Barclays Wealth targets income seekers with new Defined Distribution Plan
- New six-year investment issued by Barclays Bank PLC
- Investors receive 8% for each anniversary that the FTSE is at or above 90% of its starting level
- Capital is at risk if the FTSE falls by more than 50% during the term
- Eligible for 2010/11 and 2011/12 Stocks & Shares ISA investment
Barclays Wealth has launched a new investment aimed at the more adventurous income-seeking investor.
Linked to the performance of the FTSE 100 Index, the six-year Defined Distribution Plan offers the potential of fixed payments of 8%, provided the Index is at or above 90% of its starting level on each anniversary. If the FTSE is below this level on any of the Plan’s anniversaries, no income will be paid for that year.
Investors’ capital will be repaid at maturity on the condition that the Index has not fallen below 50% of its starting level during the term and remains below its starting level at maturity. Should this occur, capital will be reduced on a 1-for-1 basis in line with the index.
Full details of the Plan can be found at http://www.barclayswealthstructuredinvestments.com.
Commenting, Richard Henry, director at Barclays Wealth, says: “With the FTSE close to its highest level in well over a year, it is understandable that investors might question the rationale for investing in a positive performance-reliant product for 6 years.
“Our new Defined Distribution Plan can help address this concern, offering investors the chance to receive a competitive fixed return each year, even if the FTSE suffers a modest fall. It does this while still providing a full return of capital, unless the FTSE suffers a severe drop of more than 50% during the term and fails to recover at maturity.”