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Barclays Stockbrokers launches new FTSE 100 Structured Product

UK 10% Autocall, a structured capital at risk product, offers potential return of 10% gross for each year of the product’s life.

Exclusively available to Barclays Stockbrokers clients until 27 July 2011.

Barclays Stockbrokers, the UK’s largest online execution-only retail broker, introduces a new structured product – the UK 10% Autocall, issued by Royal Bank of Scotland plc (RBS)1. The product is available exclusively to Barclays Stockbrokers clients until 27 July 2011.

The UK 10% Autocall has a maximum five year term, although there is the potential for early redemption from year two, depending on the performance of the FTSE 100 Index². The product provides investors with the opportunity to achieve a potential fixed return of 10% per year for each year since the Start Date³. If on any of the Early Redemption Dates, the FTSE 100 closes at or above its closing level on the Start Date then the product will redeem early and pay the return.

If an investor believes that the FTSE 100 Index will stay around the same level or rise moderately over the coming years, the UK 10% Autocall offers the potential to make significant returns.

If on the Final Redemption Date, the Index closes below the Starting Index Level and the Index has closed below 60% of the Starting Index Level on any business day during the term, investors’ capital will be at risk and they may lose some or all of their investment. However, provided the Index closes at or above 60% of the Starting Index Level* on each day, investors will receive back their full investment.

Investors can sell the product before the Final Redemption Date, but they may get back less than they invested irrespective of the performance of the FTSE 100.

Paul Inkster, Head of Product, Barclays Stockbrokers, said: “This product is for investors with a moderate to positive outlook on the UK equity market over the next two to five years. The potential returns are attractive: 20% after two years; 30% after three years; 40% after four years or 50% after five years.

Inkster continued: “We have offered our clients similar capital at risk products in the past and they have consistently proved popular with investors who are prepared to risk part of their original investment in exchange for the potential for attractive returns. We listen to what our clients tell us, which is why we believe the UK 10% Autocall will be a popular issue. We will continue to offer investors a variety of products from a range of providers, enabling our clients to build a 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.

(1) UK 10% Autocall
Key dates -
Offer Period: 6 July 2011 – 27 July 2011
³Issue Date: 27 July 20111
Observation Period: Each Business Day from, and including, 27 July 2011 to, and including, 27 July 2016
²Early Redemption Dates: 29 July 2013, 28 July 2014, 27 July 2015
Final Redemption Date: 27 July 2016
Proceeds Available Date: 10 Business Days after any Early Redemption Date (where early redemption conditions are satisfied), or 1 August 2016

*The closing level of the FTSE 100 on 27 July 2011

If an investor sells before the end of the term, they could get back less than they originally invested.