Barclays Wealth launches new six-year Emerging Markets Optimiser

Barclays Wealth is reissuing its Emerging Market Optimiser (EMO) for investors seeking long-term exposure to emerging markets without the risks commonly associated with the sector.
For the first time, the latest EMO – which is available now, again offering an innovative investment strategy plus full repayment of capital at maturity – will be a six-year investment. As with previous issues, it is linked to the iShares MSCI Emerging Market Index Fund, an ETF which provides exposure to 22 emerging markets with heavy weighting to the BRIC markets.
Through its pioneering dynamic allocation strategy, the EMO effectively smoothes investment returns by adjusting its exposure to the index fund on a daily basis. Broadly, the level of exposure decreases when the index fund becomes more volatile, and increases when conditions are calmer. Investors receive 90% of the investment return produced from this strategy.
Investors will receive 100% of their capital at maturity, irrespective of the performance of the underlying index over the term.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, manager, Barclays Wealth, says: “Emerging markets are widely tipped to be the leading long-term investment story but investors remain understandably wary of this high growth but volatile sector. The Optimiser is designed to smooth out the volatility through its dynamic allocation strategy while at the same time making sure that investors can still access the growth potential of this exciting area. Investors also have the added comfort of getting 100% of their capital back at maturity, irrespective of index performance.”