Barclays Capital to launch FTSE 100 linked structured OEIC

Barclays Capital Fund Solutions, the asset management business of Barclays Capital, is broadening its product offering with the launch of a structured OEIC linked to the performance of the FTSE 100.

The IFSL Barclays Defined Returns Autocall Fund 1, available through a range of channels including Cofunds, is a mirror of Barcalys’ Defined Returns Plan Annual Kick-Out.

This new fund aims to provide investors on maturity a return equivalent to 6.5% net of fees multiplied by the number of years the fund is not called. It also offers the chance of an early payout on any anniversary – from the third onwards – where the FTSE 100 is at or above its starting level.

If the index is at or above its starting level on the third anniversary, investors will receive 19.5%. Should this not occur until the fourth anniversary, investors will receive 26%, and so on up to 39% for the sixth and final anniversary.

If the index is below its starting level on each anniversary the fund will not be called, and investors will receive their capital back at maturity after six years, providing the index has not fallen below 60% of its starting level. If this occurs, investors would receive capital back 1:1 in line with the index (e.g. if the index at fund maturity is 35% of its starting level, investors will receive 35% of their capital back).

Colin Dickie, managing director, Barclays Capital, said: “The launch of the IFSL Barclays Defined Returns Autocall Fund 1 is a significant departure for the business and a reflection of where we see the structured products market heading in 2011 and beyond.”