Barclays launches 3 year FTSE 100 Supertracker Investment Note

As confidence in the FTSE continues to gain momentum,, Barclays Stockbrokers has launched a 3 Year FTSE 100 Supertracker Investment Note to provide investors with the opportunity to gear any returns from the FTSE 100 up to a maximum return of 50%. With a three year term, the Note is designed for those investors who believe that whilst stability may be on the horizon, there is still a long road to market recovery and so want to gear their returns to potentially rebuild their portfolios as quickly as possible.

The Note, which is linked to the market value of the FTSE 100 Index, offers four times the rise in the index up to 50%. Therefore the final index level only needs to have risen by 12.5% at the end of the three years for an investor to receive the maximum 50% return. Capital is repaid in full at maturity provided that the FTSE 100 Index has not fallen to less than 50% of the initial index level at any time during the term. If it has and, at maturity, the FTSE 100 is lower than the initial index level capital will be reduced by 1% for every 1% the Index is below its initial level.

The FTSE 100 Supertracker Investment Note is available exclusively from Barclays Stockbrokers until 27 May 2009, with the opportunity to invest from as little as £500.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers says: "For those investors who appreciate the need to put their money to work, this Note offers attractive gearing and therefore only requires a relatively low level of growth to achieve returns over a three year period. Whilst we appear to be seeing recovery, we still remain a long way off any plain sailing through the markets and investors can capitalise on these market movements by diversifying their investments with an investment of this type. It has the potential to offer attractive returns over the three year term. We believe this offers investors a response to the requests we have had for a structure which allows investors to capitalise on the markets over a shorter period.

"We have consistently seen investors buying into the market over recent months, but not everyone has the confidence to take on these volatile conditions through individual stock trading. Furthermore, there continues to be a great deal of uncertainty around the markets and the general expectation that the FTSE will remain volatile for a period remains. This Note will suit anyone who is keen to receive potentially above market returns but who is questioning whether the recession might yet prove to be long lived. The 3 Year FTSE 100 Supertracker Investment Note has been designed with these investors in mind as it requires just a 12.5% increase in the index at maturity to provide a 50% return on their investment."