Designed to provide investors with capital growth over the medium to long term, but with guaranteed capital return only at maturity, by offering the opportunity to invest in notes issued by Barclays Bank PLC
The notes invest in a dynamic portfolio of funds and zero coupon bonds that aim to maximise returns while providing support for the guarantee
if, during the three years after the end of the subscription period, the reference price related to the underlying Notes reaches £1.30, US$1.30 or €1.30;or
if the increase referred to above is not achieved within the three year period, then investors have a second opportunity of early redemption, which will occur during the fourth and fifth year after the end of the subscription period if the reference price related to the underlying Notes reach £1.50, US$1.50 or €1.50.
AA rated by Standard and Poor’s and Aa1 rated by Moody’s
Barclays is an international financial services group and has offices in over 60 countries with 76,200 employees and 2,900 branches worldwide
Barclays Capital is the investment division of Barclays Bank PLC and provides corporates, financial institutions and supranational organisations with solutions to their financing and risk management needs
Barclays Capital has the support of an AA rated parent bank with a balance sheet of over £520 billion
Total geared monies invested in Barclays Bank PLC notes
Proceeds on maturity are reduced by the loan capital and costs of borrowing
Potential Upside On Select Option Note: The loan interest on the gearing is assumed to be 5.5% per annum and is only illustrative On the Select Option if the returns on the Notes are less than the cost of borrowing then the value of the investment may fall.
Millburn Ridgefield Corporation and its affiliated entities were established in 1971
Total assets under management approximately US$1.2 billion (as at March 31, 2005), of that US$886 million in its managed futures programmes
Of the US$1.2 billion, principals, employees and former employees account for approximately US$350 million (as at March 31, 2005); one-third of which is invested in Millburn’s managed futures programmes
The Fund trades approximately 80 currency, interest rate, stock index, energy, metal and agricultural commodity futures, forward contracts and options on US and international exchanges, and in the interbank currency market
The Fund forms part of the firm’s managed futures programme which has assets under management of approximately US$712 million (as at March 31, 2005)
The Fund trades the same diversified strategy which Millburn has traded consistently since 1977
The Fund employs a multiple time-frame, systematic, trend-following approach across global markets, coupled with a systematic, active risk management overlay
The Fund strategy is designed to profit from broad based trends in global markets
ABN AMRO Asset Management is the investment management division of ABN AMRO Bank
ABN AMRO Bank, with origins dating back to 1824, is among the 10 largest banks in Europe and has over 3,000 branches, 100,000 employees in over 60 countries and assets of about US$500 billion in capital as at 31 st March 2005
ABN AMRO Asset Management has over 1500 institutional clients including central banks, pension funds, insurance companies and other institutions
The Asset Management division manages almost €160 billion (as at 31 st March 2005) in segregated accounts
Invests in emerging markets fixed income securities, primarily denominated in US Dollars, with medium and long term maturity
A combination of strategies ranging from regional views to country specific bond views, in which the degree of importance of either top-down or bottom-up assessments will depend on the global and country conditions
Fund size US$1,187 million (as at 31 st July 2005)
During the first year subscription period the rise in the underlying note price of the Managed Guaranteed Fund secures an increased minimum guaranteed return on maturity of the fund as demonstrated in the example below:
Rising Guaranteed Return at Maturity
What the chart shows:
The initial launch price of 1.000 is the minimum guaranteed price payable at maturity, ie. the minimum amount payable at maturity is equal to the investment.
During months 2, 3 and 4 the underlying note price continues to move upwards and by month 4 clients who invested at 1.000 now have a guaranteed minimum return of 10.9% at maturity.
The price then falls slightly in month 5, but for those who invested at 1.000 the minimum guaranteed return at maturity remains at 10.9%.
Clients entering in month 5 at the lower price are guaranteed more than the return of their original investment at maturity as the guaranteed return will be based on the highest underlying note price achieved to date, which in this example occurred in month 4.
3 specialist Fund Managers and first class funds:-
Gartmore European Selected Opportunities Fund - £1.64 million – AAA rated*
Millburn Ridgefield Corporation Diversified Trading Company II-t he Fund forms part of the firms managed futures programme which has assets under management of approx US$783 million (as at 31 st March 2005)
ABN AMRO Asset Management Global Emerging Bond Fund – US$1,187 million (as at 31 st July 2005) - AA rated*
Two Investment Opportunities
The Managed Guaranteed Option and The Select Option