As with the previous edition, this latest euro-denominated account offers protected exposure to the Euro Stoxx 50 Index, with full capital protection available on maturity. The minimum investment is €50,000.
Also unveiled at the same time was Barclays’ latest sterling-denominated deposit account, which offers four-year protected access to the FTSE 100, with a minimum investment of £50,000.
Both products are designed for use within offshore bonds and UK onshore life insurance wrappers, and are available now through 27 August.
Digital option
Barclays Capital director David Macdonald said Barclays, a major provider of structured products for the offshore market, had decided to launch deposits with a so-called ‘digital style payoff’ in response to adviser demand “for products with an attractive potential return in an easy-to-understand format.”
The term ‘digital’ is used because investors receive one of two results from their investment: all their investment amount back and nothing more, or all their investment plus an investment return equal to 24%, in the case of the sterling account, or 21% in the case of the euro-denominated one. This what is known as a ‘digital’ or ‘binary’ payoff.
To receive no gain, the index to which the product is linked would, on the maturity date, have to be below the point it was four years earlier.
In other words, the Four Year Protected Digital Deposit Account is designed to return an investor’s capital on maturity in full, no matter how the FTSE 100 Index has performed, plus a 24.0% coupon if the FTSE is at least as high on 29th August 2014 as it is on 31st August 2010.
Other currency options available
As it has in the past, Barclays Capital said it is able to create similar accounts denominated in other major currencies where demand is sufficient.
Access to both products is available through most offshore life bond providers, details of which may be found at the Barclays website – along with brochures and fact sheets – at www.BarclaysOffshoreSolutions.com.
Barclays Capital Protected Deposit Accounts
Product |
Four-year Protected Digital Deposit Account |
Four-Year Protected Euro Digital Deposit Account |
| Offer period: | 1 July 2010 to 27 Aug 2010 | 1 July 2010 to 27 Aug 2010 |
| Investment Date: | 31 August 2010 | 31 August 2010 |
| Maturity Date: | 29 August 2014 | 29 August 2014 |
| Repayment Date: | 2 September 2014 | 2 September 2014 |
| Investment Index: | FTSE 100 Index | Euro Stox 50 |
| Minimum Investment: | £50,000 | €50,000 |
| Repayment Amount: | Protected full return of capital value at the repayment date, plus an investment return equal to 24%, provided the index performance is not negative | Protected full return of capital value at the repayment date, plus if the index performance is not negative, an investment return of 21% |
