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UK 5x Supertracker offers potential return of five times the rise in the FTSE 100
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Maximum potential return of 80%
Barclays" target="_blank">http://www.stockbrokers.barclays.co.uk/">Barclays Stockbrokers, the UK's largest online execution-only retail broker, has launched a new structured product - the UK 5x Supertracker, issued by Royal Bank of Scotland plc (RBS)1. The product is available exclusively to Barclays Stockbrokers clients until 31 August 2011.
The UK 5x Supertracker provides investors with the opportunity to make a return of five times the rise in the FTSE 100 Index over the five year term, up to a maximum potential return of 80%. The return is calculated by comparing the difference between the Final Index Level² (which is averaged over the final calendar month of the term3), and the Starting Index Level - the positive difference is multiplied by five to calculate the return. However, if at the close of business on any day during the term, the FTSE 100 Index has fallen to a level below 60% of the Starting Index Level and the Final Index Level is below the Starting Index Level, investors will lose 1% of their capital for every 1% by which the FSTE 100 has fallen.
Therefore, if an investor believes that the FTSE 100 Index may have hit a low, the product offers the potential to make significant returns from only a small rise in the Index over the coming years. For example, if the Final Index Level is 5% greater than the Starting Index Level, the investor will receive a return of 25%.
Paul Inkster, Head of Product, Barclays Stockbrokers, said: "The UK 5x Supertracker is designed for investors who believe that the FTSE 100 Index may have hit a low and are keen to gain potential significant returns from only a small rise in the Index.
Inkster continued: "We believe the UK 5x Supertracker is a great opportunity for those investors looking to invest in the FTSE at a time when sentiment is mixed. We are pleased to continue to offer our clients the opportunity to invest in a product that offers both exposure to the FTSE 100 and complements those which we have previously made available. We consistently respond to client feedback, and will continue to offer investors a variety of products from a range of providers, enabling our clients to build a diversified portfolio that meets their investment objectives."
Returns are tax-free if the product is held within an Investment ISA or SIPP. If held outside a tax-efficient account, returns are subject to Capital Gains Tax.
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