Barclays Stockbrokers launches new FTSE 100 linked investment ISAs

04 March 2009 / by Rachel Mason
Barclays Stockbrokers has today launched two new Investment Notes linked to the FTSE 100, both of which can be held within a Barclays Stockbrokers Investment ISA.

The FTSE 100 Protected Defined Returns Investment Note is designed for cautious investors seeking a higher return than the low rates available from cash while the FTSE 100 Accelerated Returns Investment Note Issue 3 is aimed at investors who want to take advantage of any recovery in the FTSE 100.

The two new products have been launched in response to volatile market conditions, which Barclays Stockbrokers says tends to produce "polarised positions."

"While some investors prioritise capital protection because they are nervous about the continued falls, the more adventurous investors can see these markets as offering significant opportunities for growth over the longer term," says the retail share dealing firm.

Barclays Stockbrokers research has found that in periods of market volatility 16 per cent of investors seek protection for their capital, whilst 70 per cent believe it provides the opportunity for short term wins.

The Protected Defined product caters for the first group, as it is a five year investment offering full capital repayment with a fixed return of 32 per cent (provided that at maturity the final level of the FTSE 100 is no lower than the Initial Index Level).

The Accelerated Returns investment offers five times any rise in the FTSE 100 up to a maximum return of 100 per cent, which means the index only needs to rise by 20 per cent at maturity to provide a return of 100 per cent.

"We have noted a significant increase in the number of people seeking to transfer cash investments, which we suspect is due to the low returns offered by cash this year," said Barbara-Ann King, head of investment strategy and marketing at Barclays Stockbrokers.

"Through issuing two Investment Notes with 2 different risk profiles we believe that they will cater for the two very different target audiences."

Ms King says Barclays Stockbrokers has chosen to focus on the FTSE 100 because it is a well known index which investors are often more comfortable to invest in when markets are volatile.

She continued, "this year’s ISA season is now upon us and both these notes are eligible to be held within an Investment ISA and Self Invested Personal Pension."

Find out more about how you can take advantage of the FTSE 100 Protected Defined Returns Investment Note or FTSE 100 Accelerated Returns Investment Note Issue 3 through a Barclays Stockbrokers Investment ISA

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