Barclays Capital has launched two new structured deposits designed exclusively for offshore bond investors.
The Five Year Guaranteed Arabia Titans 50 Deposit Account and the Five Year Guaranteed FTSE 100 Deposit Account allow investors to select a cash asset that is linked to the growth potential of equities, but with the security of a capital guarantee when held to maturity.
The products participate only in positive returns from the indices to which they are linked, and guarantee a full return of capital at the end of their five-year term.
The FTSE 100 index consists of the 100 largest UK-listed companies by capitalisation. The Dow Jones Arabia Titans index covers in a single index almost the entire investable Arab region, representing the 50 largest stocks across Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Tunisia and the United Arab Emirates. Over the past five years it has delivered an annualised return of over 35%.
The Arabia Titans 50 product is available in sterling and US dollars, with a minimum investment of £50,000/$75,000. The FTSE 100 product is available in sterling only with a minimum investment of £50,000. There is a return cap of 60% on the FTSE 100 product, or 58%/44% respectively on the sterling and dollar versions of the Arabia Titans product. Both mature on 28 June 2013.
Barclays says these deposits will appeal to investors holding cash within a bond, but looking for a safe way to generate equity-styled returns. They will also attract investors looking to balance the risk factor of a portfolio with a large equity exposure.
The deposits can be held in most offshore bonds from providers in Dublin, the Isle of Man and the Channel Islands.
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