Barclays Wealth relaunches annual kick out in response to market demand

Which offers investors the chance of an early investment return of 8.25% after just a year subject to FTSE 100 Index performance.

The new plan offers a potential return realised on any anniversary - from the first onwards - where the FTSE 100 Index is at or above its starting level. For example, if the FTSE 100 is at or above its starting level at its second anniversary, investors will receive 16.5% and their capital will be repaid. 

If this occurs on its third anniversary, investors will receive 24.75%; and so on up to 49.5% on its sixth and final anniversary. If there has been no early disposal after six years, capital will be reduced if the index closes below 50% of its starting level, at maturity. Should this happen, investors will lose capital on a one for one basis with the index.

Richard Henry, Director, Investor Solutions, Barclays Wealth, said:

"Increased market volatility has enabled us to improve on the terms offered in our previous Annual Kick-out Plan, and this is something we think intermediaries and their clients will welcome as they seek products which provide a competitive rate of return."

"Despite negligible year-on-year FTSE performance, last year's June 2010 edition of the product recently kicked out at a rate of 10%.  This demonstrates the ability of the kick-out product to deliver returns even in a benign growth environment."