Barclay’s mining linked plan

June 26, 2009

Barclays Wealth launched its first mining themed structured product for investors wanting to position themselves for an economic recovery. The Mining Stocks Supertracker gives exposure an equally weighted basket of mining stocks with 400% participation, subject to a maximum return of 100%.

Therefore, the basket needs to rise by 25% to provide the maximum return.
The five-year note gives exposure to the following stocks: Anglo American; BHP Billiton; Rio Tinto; Vedanta Resource and Xstrata.
There is no capital protection but the product does have a 50% barrier. If this barrier is breached at the end of the term then the capital will be reduced by 1% for every 1% fall in the underlying.
The final level is calculated by working out the average of the underlying during the last 12 months of the term.