Defined Returns Plan Annual Kick-Out (AKO 100 option): January 2010

The DRP Annual Kick-Out offers investors the chance to receive a competitive fixed pay-off and, under certain circumstances, an above-market return. As with its sister investment (Defined Returns Plan), the proposition is quite simple – using an early maturity feature the Plan aims to deliver a fixed return provided the FTSE 100 Index is either at or above a certain level on any anniversary during the investment term, at which time investors' capital will be repaid together with a return based on how long the investment has been in force.

Although the DRP Annual Kick-Out provides a significant level of protection, it is not a guaranteed investment. Repayment of capital is conditional on the Index not breaching a safety barrier at maturity. The Plan will appeal to growth investors seeking predictable returns and prepared to accept some capital risk in exchange for an attractive potential reward.

Current offer in summary:

• Six-year investment term
• Two investment options
  • AKO 85 option: Pays a fixed return from the third anniversary date onwards where the Index is equal to or higher than 85% of its starting level. If this condition is met, the return is 7.75% multiplied by the number of years the Plan has been in force
  • AKO 100 option: Pays a fixed return on the first anniversary date where the Index is equal to or higher than the starting level. If this condition is met, the return is 7.75% multiplied by the number of years the Plan has been in force
• Full repayment of investors’ capital, unless the FTSE 100 is more than 50% below its starting level at maturity – in which case both capital and the return will reduce 1:1 with the Index (see brochure for details concerning the risks)
• Invests in assets issued by Barclays Bank PLC – Rated AA- by Standard & Poor’s and Aa3 by Moody's.
• Eligible for ISA investment including transfers – although the CGT 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 may result in a capital loss
• 3% commission - can be sacrificed upon request on a one-for-one basis

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.