Barclays Stockbrokers launches new FTSE 100 structured product
Jennifer Lowe, 09 March 2010
Barclays Stockbrokers has announced the launch of the FTSE 100 Accelerated Returns Investment Note Issue 51, offering the potential of three times the rise in the index up to a maximum return of 75 per cent.
The product is designed to offer investors enhanced returns on the FTSE 100 Index over its five-year term.
If the Final Index Level (which is averaged over the last month) is above the Initial Index Level by 25 per cent or more, the maximum return of 75 per cent would be paid. If the FTSE 100 Index has fallen by more than 50 per cent at any time during the five year term, and is below its initial starting level by the end of the term, the original capital invested will be reduced in line with the decrease in the FTSE 100 Index.
While the note has a five-year term, it can be traded in the secondary market at any time at the prevailing market price to allow investors to alter their strategy to take advantage of changing market conditions. This price varies on a daily basis and may be more or less than the issue price.
Barbara-Ann King, head of investments at Barclays Stockbrokers, said, ‘The UK stockmarket is less volatile than it was during 2009, and so investors are having to work hard to generate positive returns.
‘A potential return of 75 per cent over 5 years is likely to be attractive to many investors at a time when many economists are predicting moderate stockmarket growth over the medium term as the global economy recovers from the effects of a deep recession and the banking crisis.’
The Note is available exclusively through Barclays Stockbrokers until 15 March 2010 and is eligible to be held within a Barclays Stockbrokers Pension Master or Investment ISA, which means investors can enjoy tax-free returns on this investment.
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