Take Notes with Barclays

Barclays Stockbrokers has announced the launch of two new Investment Notes to tie in with the start of the ISA season - one linked to the Dow Jones EuroSTOXX 50 Index, the other tracking the performance of the FTSE 100 Index.

Both have been designed to provide diversity to investors' portfolios and, if held in an ISA, PEP or SIPP, offer a tax efficient investment opportunity.

The Euro STOXX Top 50 Investment Note is a 5 year note which tracks the Dow Jones EuroSTOXX 50 Index and offers a potential return of 75% if the final level of the index is equal to or higher than the initial level.

Investors will receive their full investment back at maturity provided that the Index hasn't fallen below 60% of the Initial Level and failed to recover. In this case their capital return will be reduced by 1% for every 1% that the index is below its initial level.

The European blue-chip companies, measured through the performance of the index, include sectors comprising finance, telecommunications, health care, food, technology, retail, chemicals and the auto industry.

Companies within these sectors include: BCO Santander Central Hispano, E.on, ING Group, Bayer, Nokia, Sanofi Aventis, Telefonica and Total.

The FTSE 100 Capital Protected Investment Note, on the other hand, is a 6 year growth investment vehicle designed for investors who want to share in the growth potential of the FTSE 100 Index.

It will provide investors (at the end of the term) with 100% capital protection and a return of 133% of any rise in the Index, subject to a maximum index rise of 60%. Therefore, investors' returns are capped at 80%.

Both of these Investment Notes are eligible to be held within a Barclays Stockbrokers Investment ISA, PEP or SIPP. Therefore, investors can also enjoy tax-free returns on their investments.

Minimum investment is £500.

For the Euro STOXX Top 50 Investment Note, the offer runs through February 15th - the Investment start date (Initial Index level date) commencing February 15th and ending on February 15th 2013.

For the FTSE 100 Capital Protected Investment Note Issue 3, the offer runs through February 29th - the Investment date (Initial Index level date) commencing February 29th and finishing on February 28th 2014.

Investment Notes are designed to attract investors looking to complement their portfolios in volatile markets by offering returns linked to investment indices or assets. And with an element of capital protection at maturity.

The Notes will be listed on the London Stock Exchange. The investments can be sold prior to the end of the term but the maturity benefits will not be paid and the value might be less than the initial investment.

22 January 2008 © Moneyextra.com

back

Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.