Barclays Wealth aims at cautious investors

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Barclays Wealth has launched a new range of investments for cautious investors seeking an alternative to equities.

Open until 31 October, the suite includes the Protected FTSE plan, which offers investors 1.5 times the rise in the FTSE 100 up to maximum return of either 27 per cent for the three-year option, or 60 per cent for the five-year option.

The Minimum Return plan offers a fixed return of 18 per cent at maturity plus a potential additional payment of 26 per cent if the FTSE 100 never trades below 60 per cent of the initial index level.

It provides full capital protection if held to its full term.

Barclays Wealth’s Super Tracker offers the choice of two investment terms, three times the rise of FTSE 100 up to 40 per cent for the five-year option, or five times the rise up to 75 per cent. Investors’ full capital will be returned unless the FTSE falls by more than 50 per cent and fails to recover by maturity.

The Regular Income Bond, a five-year income only investment linked to the Dow Jones Stoxx50 index offers an annual gross income of 7.25 per cent or a quarterly income of 1.78 per cent. Investors’ full capital will be returned unless the index falls by 40 per cent and is not equal to or higher than the initial index level at maturity.

Colin Dickie, a director of Barclays Wealth, said: “We think advisers should be particularly mindful about investors close to retirement or in drawdown mode where pension pots might be much reduced. This is where the strength of the Super Tracker can prevail over alternative recovery strategies.”

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