Defined Returns Plan (five-year option): January 2010

The Defined Returns Plan offers investors the chance to receive a competitive fixed pay-off and, under certain circumstances, an above-market return. As with its sister investment (DRP Annual Kick-Out), the proposition is quite simple – the Plan aims to deliver a fixed return provided the FTSE 100 Index remains either at or above its starting level at maturity.

With a choice of options available, investors can select an investment term which provides a ‘best match’ for their preferred investment horizon, in the full knowledge that, at maturity, they will receive full repayment of capital irrespective of Index performance.

The Plan will appeal to growth investors seeking a predictable equity-linked return without the risks normally associated with unprotected equities.

Current offer in summary:

• Potential return is:
  
  • 14% after five-years*
• Returns are dependent on the FTSE 100 Index at maturity being at or above the Initial Index Level
• *An additional 20% return if the FTSE 100 Index is at or above 20% of the Initial Index Level at maturity
• Full repayment of the capital invested at maturity – irrespective of Index performance
• Invests in assets issued by Barclays Bank PLC – Rated AA- by Standard & Poor’s and Aa3 by Moody's.
• Investment is eligible for ISA investment including transfers – although the capital gain tax treatment of the Plan gives you the option of using your clients’ ISA allowance elsewhere
• Eligible in most cases for pension portfolio investment within a SIPP or SSAS investment
• Suitable for Corporates, Trusts and Charities investment
• Early withdrawal is possible but clients may get back less than they invested
• 3% commission

If you would like to find out more about using this Plan in your clients’ portfolios, please call us on 0800 234 6023 to arrange to speak to one of our Business Development Managers.