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R1344 Barclays Regular Income Bond September 2009 Edition
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Product
type: At-risk income (capital not
protected)
Product
summary:
This is a six-year income product linked
to the FTSE 100 Index. It pays an annual income of 7% or 0.57%
per month. The product is capital protected at maturity unless
a 50% barrier is breached during the product term.
| Points for: |
| 1. Choice of annual income of 7% or monthly income
of 0.57% |
| 2. Income is paid regardless of index
performance |
| |
| Points against: |
| 1. Capital is not protected at maturity if the 50%
barrier is breached during the
term | |
|
Asset exposure period 6 years
Underlying Asset FTSE-100
Final index level defined
as the closing level of the index on the final day of
the investment.
Market barrier
levels 50% of initial index level.
Investment Limits: Minimum £3,600,
maximum £500,000.
Commission: 3%
Wrappers and investment vehicles:
Direct Investment, ISA, ISA transfer, Trustees of a trust,
Corporate/Commercial
Tax
treatment outside a tax-free wrapper
(according to
information from the product provider):
Income.
Issuing Institution /
Counterparty: Barclays.
Credit rating of investments made
(according to information from the product
provider): S&P's AA-.
|
| Offer
period: |
Opens |
Transfers by |
Closes |
|
24/08/2009 |
30/09/2009 |
19/10/2009 |
| |
| Key
dates: |
Strike set |
Final market
reading |
Maturity/payout |
|
28/10/2009 |
28/10/2015 |
n/a | | |
Product description:
This is a six-year income product linked to the FTSE 100
Index. It pays an annual income of 7% or 0.57% per month. The
product is capital protected at maturity unless a 50% barrier is
breached during the product term.
The investor receives the
relevant income stream regardless of the performance of the
underlying index. Income payments of 0.57% are paid monthly from 30
November 2009 or 7% if the annual option is chosen from 28 October
2010.
Capital is not protected at maturity if the 50% barrier
is breached at the closing time of any day during the product term.
The barrier is breached if at any time during the product term the
level of the FTSE 100 Index falls by more than 50% from the initial
index level. If the barrier is breached and the final index level is
less than the initial index level then capital is lost at a rate of
1:1. If the barrier is breached but the index recovers to at least
the initial index level at the end of the product term then capital
will be returned in full. If the barrier is not breached the
investor will receive 100% return of capital at maturity.
The two income options (monthly and annual) offer investors
an income stream which is not based on the performance of the
underlying. The analysis below details the annual version.
It is open for direct investment, ISA subscriptions for the
2009/2010 tax year and ISA transfers (including SIPP and SSAS
investment). According to the product literature any income earned
on direct investment is paid gross and subject to income tax. The
plan is also available for non-personal investment. |
This
product was assessed as follows:
(to see
details about the scoring system, riskmap and
probabilities please see Research
methodology explained.
NB All scores and riskmap include both
market and credit risk. The probabilities shown assume
that no default event occurs. |
| Non / tax-free e.g.
ISA: |
7.52 / 10 |
| Basic: |
7.1 / 10 |
| Higher: |
6.59 / 10 |
| Riskmap: |
2.1 / 5 | |
To compile the overall scores
this
product scored as follows
in our different
categories:
Value rating:
9.46/10
Simplicity rating:
7.5/10
Return rating: 5.58/10
|
Report first published
25-08-2009. Scores last updated
21-09-2009. Scoring: version 2. To see
all published scores for this product click
here |
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Rating vs riskmap
chart |
Probability table of
product return outcomes
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| |
 |
| Return bucket (% p.a.) |
< -5 |
| Probability (%) |
1.1 |
| Return bucket (% p.a.) |
-5 to 0 |
| Probability (%) |
5.2 |
| Return bucket (% p.a.) |
0 to 5 |
| Probability (%) |
10.1 |
| Return bucket (% p.a.) |
5 to 10 |
| Probability (%) |
83.6 |
| Return bucket (% p.a.) |
10 to 15 |
| Probability (%) |
0 |
| Return bucket (% p.a.) |
> 15 |
| Probability (%) |
0 |
|
| View
more detailed probability tables for this
product | |
Performance
Statistics:
|
| Annualized volatility
(product): |
5.03% |
| Annualized volatility
(underlying): |
38.44% |
| Product Sharpe
ratio: |
6.43% |
| Market Sharpe
ratio: |
37.70% | |
Upside and downside
measures:
|
| Upside
measure: |
6.85% |
| Downside
measure: |
0.16% |
| Upside measure beyond
risk-free: |
2.98% |
| Downside measure beyond
risk-free: |
0.59% | |
Equivalent initial
portfolio:
|
| Underlying: |
17.52% |
| Bond: |
53.71% |
| Cash: |
28.77% | |
Initial
sensitivities:
|
| Delta: |
0.18 |
| Rho: |
-0.29 |
| Vega: |
-0.08 | | | | |
Download product
literature
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Information from the product
provider:
Future Value Consultants Limited does not
control external sites and accepts no responsibility for the content
contained therein.
Here is a link to the product provider
you may find of interest: Barclays
homepage
Contact details
for Barclays
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Report published 25-08-09 by Future Value
Consultants Limited. © Copyright
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