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Barclays Stockbrokers' New Strucutured Product Bets On Raw Materials Upturn

Tom Burroughes

26 June 2009

Barclays Stockbrokers, part of UK banking group Barclays, has launched an investment note designed to exploit an expected upturn in the raw materials sector as a result of an economic recovery.

The Mining Stocks Supertracker is available until 30 June. The product gives investors exposure to growth in an equally weighted basket of five mining stocks.

The product matures in five years’ time, with a return equal to four times any rise in the value of the basket over the term (with the final level averaged over the last twelve months), subject to a maximum return of 100 per cent.  Therefore, the basket needs to rise by 25 per cent to provide the maximum return.

“Over recent months we have repeatedly seen mining companies appearing in the top ten stocks traded by our clients; this interest is supported by the sentiment that the raw materials sector will respond positively as the global economy pulls out of recession, said Barbara-Ann King, Head of Investments at Barclays Stockbrokers.

Under the terms of the product, capital will be repaid in full at maturity provided that during the 5 year term the value of the basket has not fallen to a level less than 50 per cent of the initial basket level.