Barclays Stockbrokers offers new FTSE 100 fund for early bird ISA investors

07 April 2009 / by Rachael Stiles
Barclays Stockbrokers is catering for the early bird ISA investor looking for a combination of capital protection and flexibility.

Research from Barclays Stockbrokers has revealed that 85 per cent of investors are planning to put money into an investment ISA in the new 2009/2010 tax year, and that one in five investors are looking to invest early so that they can maximise their tax-free returns.

A growing number of investors are looking towards capital protected products as volatility in the markets continues, Barclays Stockbrokers has found, but they still require flexibility in case the markets should recover.

The study also found that around 25 per cent of investors deposit a lump sum into an investment ISA or cash ISA, or both, as soon as the new tax year begins, in order to take advantage of their tax-free savings allowance.

Meanwhile, just nine per cent invest regular sums throughout the year, with more choosing to get in there early and catch the tax-free worm.

Accordingly, the Barclays Stockbrokers FTSE 100 Defined Returns Investment Note offers investors the chance of attractive returns from FTSE growth for a five year term, with an early maturity option.

The Barclays Stockbrokers FTSE 100 Defined Returns Investment Note is available until April 24 for those who wish to use it for their ISA allowance. It is only available directly through Barclays Stockbrokers, and you can get it with a Barclays Share Dealing account.

The investment note – which is eligible for an investor's ISA allowance of up to £7,200 – offers investors a 12 per cent return for each year that the plan is running; but, it automatically matures on the first anniversary where the FTSE 100 Index is at the same level or higher than Initial Index Level.

Or, if the note does not automatically mature, it offers 100 per cent of the capital back when the five year term ends, unless the FTSE 100 Index falls more than 50 per cent during the term and the Final Index Level of the FTSE 100 is lower than the Initial Index Level at maturity.

In the latter case, the fund will experience a one per cent reduction in capital for each one per cent that the index is below the starting level.

Barbara-Ann King, head of investments at Barclays Stockbrokers, says that while volatility is expected to continue for some time, investor confidence is being fuelled by signs of recovery in the market, since the FTSE rallied for the first time in several months when it broke the 4,000 barrier yesterday.

"Throughout recent months we have consistently seen our more confident investors capitalising on market volatility and expect this trend to continue as investors increasingly take control of their investment decisions," she said. "When it comes to investing in a tax efficient manner, it is encouraging to see a quarter of our clients take full advantage of their Investment ISA by investing early, as soon as the new tax year begins."

Apply today for The Barclays Stockbrokers FTSE 100 Defined Returns Investment Note by getting a Barclays Share Dealing account.

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