Barclays Stockbrokers launches FTSE Linked Income Note

Barclays Stockbrokers, UK online execution-only retail broker, has launched a new structured product based on the FTSE-100 - the FTSE Linked Income Note issued by Barclays Bank PLC.  The product is available exclusively to Barclays Stockbrokers clients until 21 December 2010.

The FTSE Linked Income Note is a five year and ten day fixed term investment, providing investors with the opportunity to earn 2% for each quarter that the FTSE-100 (the Index) is at or above the closing level of 21 December 2010 (the starting level). The investment offers a maximum potential income of 8% per annum, or 40% return over the full term.

The Note also has a memory feature; the product remembers if and when an investor misses a quarterly payment (i.e. if the FTSE is below the starting level). The next quarter that the Index qualifies for a payment, not only will the investor get that 2%, they will also receive every quarterly payment that they have missed.

This is a capital at risk structured product and investors should bear in mind that they may receive no returns. If the FTSE-100 closes at a level below 60% of the starting level on any day of the investment and, at the end of the term, is not at or above that starting level, the capital that investors receive back will be reduced by 1% for every 1% that the Index is below the starting level.

Investors can sell the product before its maturity but will receive a market value which may be less than they invested.

Paul Inkster, Head of Product, Barclays Stockbrokers, said: "With no expectation that interest rates will rise in the near future and the conventional sources of dividends not as reliable as has been the case in the past, those seeking income have to consider alternative investments. This structured product should be very attractive for those investors looking for the opportunity for an enhanced income, and prepared to accept a risk to their capital. The potential returns of 2% each quarter and the prospect of getting back the returns from missed quarterly payments through the memory feature are both appealing features. Provided the FTSE-100 Index is at the same level or higher than the starting level on each quarterly observation date, investors will achieve the 2% return. This investment is ISA and SIPP eligible, so investors can invest in a tax-efficient manner."

For more information, visit stockbrokers.barclays.co.uk.