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IDAD launch new Defensive Growth Deposit Plan – June 2023

  • Wednesday, May 17, 2023

IDAD launch new Defensive Growth Deposit Plan – June 2023

IDAD have launched a new Defensive Growth Deposit Plan – Issue 1 – June 2023 plan.  A summary of the plan is provided below but please refer to the Brochure for full details of the investment.

The Deposit Taker for this plan is Barclays Bank PLC and a brief resume is provided below.
About Barclays Bank PLC: Barclays PLC is a global financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services.

Barclays Bank PLC are the Deposit Taker for the Growth Deposit Plan; therefore, investors are exposed to the risk of them defaulting on their obligation to repay the capital and any returns due under the terms of the Deposit Plan.

Considerations when selecting the deposit taker / issuer:

Fitch, Moody’s and Standard & Poor’s are the main three independent credit ratings agencies that research and grade the ability of financial and other institutions to make the payments due from the Deposit / Plan issued and / or guaranteed by them. Each rating agency describes and names its ratings in a different way. For example, Standard & Poor’s highest possible rating is AAA, followed by AA and A. These three ratings along with their BBB rating are generally regarded as investment grade (i.e. of higher quality). All of these ratings, except the AAA rating, can also be modified by a plus or a minus to give a deposit taker’s / Issuers relative status within the grade; for example, A+, A, A- for the A rating.

Barclays Bank Plc have ratings from each of these three agencies as follows:

*S&P’s A+ / Moody’s A1 / Fitch A+ (*Source Bloomberg and Plan Termsheet)
IDAD Barclays UK & US Defensive Growth Deposit Plan – Issue 1 – June 2023
This is a 3 year 1 week Deposit Plan linked to the performance of the FTSE 100 Index and S&P 500 Index. The Deposit Plan is constructed to offer a potential interest rate of 21% if at the Final Observation date, both Underlying Indices are at or above 90% of the Initial Strike level.

The opportunity for full capital protection and growth is the key aim of this investment.

The investment is linked to the FTSE 100 Index and S&P 500 Index (see page 6 of the Brochure for full details) and investors will benefit from growth or even declining market conditions.

The initial investment into the Deposit Plan, minus any initial adviser fee, will be returned in full at maturity
Click here for more details of IDAD Barclays UK & US Defensive Growth Deposit Plan – Issue 1 – June 2023
Don’t Forget the Risks

As with all forms of investment there are risks involved. Some plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure.

At the Best Price FS price point the iDAD Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team
Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.