Barclays Wealth reissues Emerging Markets Optimiser

Barclays Wealth has reissued its Emerging Markets Optimiser for investors looking for controlled risk exposure to the emerging markets sector.
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 20 emerging markets with heavy weighting to the BRIC markets. This is a Medium Term Note issued by Barclays Bank PLC. If Barclays Bank PLC fails to fulfil its obligations under the Note, investors will get back less than is due to them or nothing at all.
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 75% of the investment return produced from this strategy. This said, the relationship between volatility and market direction is uncertain and this strategy might not work.
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, their capital will be at risk.
This is the ninth issue of the Emerging Markets Optimiser, which originally opened for sales in February 2008, has outperformed the Index by 8% to date.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “All signs are pointing to emerging markets outperforming over the long term, but as this sector is known for being highly volatile, it will probably not be smooth sailing for investors. The Emerging Markets Optimiser smoothes out the volatility by adjusting its exposure to the Index on a daily basis and investors can also rest assured that their capital will be returned in full at maturity, irrespective of the Index’s performance.  We are fast approaching the second anniversary of the first version of the product which continues to show relative outperformance but with lower volatility.”