Barclays Five year protected FTSE plan

robert.halford

:eek: This looks good in theory but not sure about their charges, they seem high. Has anyone taken this out ? and is it a good investment being as the FTSE has rise a lot over the last few years. Can anyone help ?

EdInvestor

Is this another GEB?

If so, see this thread

Paul_Herring

EdInvestor wrote:

Is this another GEB?

Yes. http://www.barcap.com/investorsolutions/barclaysstructuredproducts/ukretail/retailmarketing/brochures/202/

dunstonh

Rubbish product (as per usual with GEBs)

richgirl

Positives -
* 110% of gain in the FTSE
* Treated as capital gain rather than income so set against CGT.
* Early 20% exit option (7.5% AER).

Negatives -
* Averaging of the final level of the FTSE over 12 months
* No dividends (20% value)

Some may automatically say its crap, but the fact is that most fund managers fail to beat the indices

tom188

Some may automatically say its crap, but the fact is that most fund managers fail to beat the indices

Buy a tracker fund then

dunstonh

Some may automatically say its crap, but the fact is that most fund managers fail to beat the indices

Single index/sector investing is old fashioned and results in poor peformance over the long term. Plus it tracks the FTSE100 which hasnt been a desirable index for quite some time now.

Most GEBs have failed to give any return since they were launched and those that have, have been mostly very small.

oldfella

Most GEBs have failed to give any return since they were launched and those that have, have been mostly very small.

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how so, the FTSE has gone up substantially in the last 2-3 years - why is this not reflected in a GEB ?

Mike

ReportInvestor

richgirl wrote:

Some may automatically say its crap, but the fact is that most fund managers fail to beat the indices

That's true.

tom188 wrote:

Buy a tracker fund then

Unfortunately trackers will also lag the index (but by less, because of the lower charges).

The key point is that it is reinvested dividends that lead to long term stock market growth.

This is the compounding effect.

And GEB's get you out of the stock market after 5 years - at just the time that you would otherwise be sitting smugly and admiring the shares that you have just purchased with the dividend on the dividend on the dividend on the dividend on the dividend that you got in year 1.

How much will it cost you - in initial charges - to re-enter?

ReportInvestor

richgirl wrote:

Some may automatically say its crap, but the fact is that most fund managers fail to beat the indices

That's true.

tom188 wrote:

Buy a tracker fund then

Unfortunately trackers will also lag the index (but by less, because of the lower charges).

The key point is that it is reinvested dividends that lead to long term stock market growth.

This is the compounding effect.

And GEB's get you out of the stock market after 5 years - at just the time that you would otherwise be sitting smugly and admiring the shares that you have just purchased with the dividend on the dividend on the dividend on the dividend on the dividend that you got in year 1.

How much will it cost you - in initial charges - to re-enter?

And why would you want someone else to choose your exit time from the stock market (which might be just the wrong time - e.g. March 2003).

dunstonh

how so, the FTSE has gone up substantially in the last 2-3 years - why is this not reflected in a GEB ?

Most are either 5 or 6 years and those started 2-3 years ago havent matured yet. Those started 5-6 years ago have seen only very small gains, if any. Those started 7 years ago or longer would have had no or little gain unless lock in available.

If there was a crash in 2 years time, those gains of 2-3 years ago would be wiped out and would have been of no benefit to the individual. Whereas a sector allocated spread would have rebalanced the profits into the lower risk end and a crash would not have the same impact.