- 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 70% of any positive performance of the Index
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 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 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 70% of any positive performance produced from this strategy.
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: “Emerging markets still remain a sector of high interest for investors but many are wary of the risks that traditionally accompany the sector. Our highly popular Optimiser, which is now in its 12th issue, helps to mitigate volatility by adjusting its exposure to emerging market equity on a daily basis while also returning investors’ capital at maturity, irrespective of market performance.”