Barclays Wealth issues Emerging Markets Optimiser
- Six-year investment issued by Barclays Bank PLC
- Linked to the iShares MSCI Emerging Markets Index Fund, offering exposure to 19 major emerging markets
- Dynamic allocation strategy – exposure raised when volatility is lower and reduced when higher
- Full return of the capital at maturity plus 80% of any positive return of the Index
Barclays Wealth has reissued its Emerging Markets Optimiser (EMO) for investors looking to access the growth potential of emerging markets, but without the risks ordinarily associated with investing in the developing world.
Available now, this six-year investment – which offers full repayment of capital at maturity – is linked to the iShares MSCI Emerging Market Index Fund, an ETF which provides exposure to 19 emerging markets with a current weighting to the BRIC markets.
Through the application of a risk adjustment strategy – dynamic allocation – the Optimiser aims to harness sector growth potential whilst managing market volatility, resulting in smoother enhanced performance. 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 80% of the optimiser strategy’s positive performance.
Investors will receive 100% of their capital at maturity, irrespective of the performance of the underlying index over the term. However, if investors withdraw from the investment before maturity, they may get back less then invested.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “While emerging markets remains one of the most attractive areas for private investors to access potentially higher growth they also remain one of the most volatile. Our Emerging Market Optimiser, currently in its 11th issue, is designed to mitigate this volatility by adjusting its exposure to emerging market equity on a daily basis. The knowledge that capital will be returned at maturity irrespective of market performance should also be reassuring for investors.”