- Exposure to the FTSE Xinhua 25 Index
- Dynamic allocation strategy – exposure raised when volatility is lower and reduced when higher
- Full return of the capital at maturity plus 65% of the return of the Optimiser strategy
Barclays Wealth has expanded its popular Optimiser range with the launch of a new product for investors looking for low risk exposure to China.
The new China Optimiser is a six-year product linked to the FTSE Xinhua 25 Index. As with its sister product, the Emerging Markets Optimiser, it applies a dynamic allocation strategy which results in a smoother, enhanced performance.
China Optimiser 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 65% of the investment return produced from this strategy as well as their full capital at maturity, regardless of the performance of the Index. However, if investors withdraw from the investment before maturity, their capital will be at risk.
Full details of the product can be found at http://www.barclayswealthstructuredinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “China has long been the darling in terms of emerging market growth but more recently has been a source of debate among industry experts, with some continuing to see a good investment opportunity and others urging caution with particular concerns over how inflation will be managed and the implications on growth.
“Our new China Optimiser helps investors to mitigate these risks to the downside whilst remaining positioned for positive performance. This is done by combining volatility adjusted returns with full repayment of capital at maturity regardless of index performance.”