The Light Energy Commodity Plan is linked to the performance of the S&P GSCI Light Energy Index Excess Return. The index represents 24 commodities across five sectors—energy, industrial metals, precious metals, agriculture and livestock.
The five-year plan offers investors 100% of the rise in the index, up to a maximum return of 90%. If held to maturity, it gives full capital protection. The final index level is averaged monthly over the last six months of the term. The plan can be sold before maturity, but investors may receive less than their original investment.
Barclays Wealth say the plan aims to take advantage of supply constraints in the commodities market, which, coupled with growing demand from countries—including China—will provide support to commodity prices.