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Barclays Wealth

Type: Capital guarantee defined plan with defined returns with annual “kick-out”.

Description: Barclays Wealth has launched two investment plans – Capital Protection and Annual Kick-Out – with defined returns pegged to the performance of the FTSE 100. The offer period for both plans runs until 28 November 2008.

Conditions: For Capital Protection, investors can place between £3600 and £500,000 in direct investments, between £3600 and £7200 as a stocks and shares Isa investment and between £3600 and £500,000 as and Isa transfer. For Annual Kick-Out, investors can invest between £3,600 to £500,000, with Isas being between £3600 to £7200. Partial withdrawals are not allowed.

Contact: www.barclaysinvestors.com/ifa

Verdict: Capital guarantee investment products typically are sold at higher fees in order for the issuer to absorb the cost of underwriting the downside risk. This limits the potential gains from such investments and this product is no different. The prohibition from early withdrawal acts as a disincentive and the capital preservation element does not protect against inflation. Overall, paying an IFA for a personalised asset allocation strategy will likely give investors more bang for their buck.

Total: 2/5