- Six-year investment backed by Barclays Bank PLC
- Offers exposure to 21 major emerging markets
- Dynamic allocation strategy – exposure raised when volatility is lower and reduced when higher
- Full return of the capital at maturity plus 72.5% of the return of the Index, 70% of the return for applications in the New Year
Barclays Wealth has launched a new version of its Emerging Markets Optimiser (EMO) for investors looking to access the growth potential of emerging markets, but lessening the risks ordinarily associated with investing in the developing world. It is the 13th issue of EMO.
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 21 emerging markets with heavy 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 72.5% of the investment return produced from this strategy. Alternatively should they wish to delay investment to the New Year, they can choose the January 2011 Edition offering 70% of the investment return.
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.
Full details of the product can be found at http://www.barclayswealthprotectedinvestments.com.
Lisa Chaudhuri, vice president, Barclays Wealth, says: “Our Optimiser continues to be one of our most popular products as emerging markets continue to be a source of great interest to investors. EMO is specifically designed to smooth out returns in this notoriously volatile sector therefore facilitating access for the more risk-averse retail investor.”