Barclays Stockbrokers Launches Investment Note Linked to FTSE Companies
Barclays Stockbrokers has launched a new investment note, which it hopes will add to the diverse range of products available to investors looking to invest in the FTSE 100 in a tax efficient way. The FTSE 100 Accelerated Return Investment Note comes with a five-year term and is eligible to be held within a Barclays Stockbrokers trading account, Investment ISA or SIPP. It is linked to the performance of the FTSE 100 Index, which comprises the 100 most highly capitalised blue chip companies, representing approximately 81% of the UK market and traded on the London Stock Exchange, and as little as £500 can be invested. Barclays claims that the note offers investors a one-off return equal to 75% if, at the end of the five-year term, the Index is equal to, or higher than, the initial level. The note, a structured capital-at-risk product (SCARP), is also designed to pay back investors’ initial capital at maturity, unless the index falls by 60% or more at any time and is not at least equal to or higher then the initial level at maturity then capital repayment will be reduced by 1% for every 1% the Index is below its initial level.