Barclays Wealth launches Emerging Markets Optimiser
Barclays Wealth has launched a new Emerging Markets Optimiser plan for investors seeking access to the Emerging Market sector using an innovative volatility control or ‘Optimiser' mechanism which aims to optimise performance and smooth returns. Giving exposure to emerging market equities, the plan offers access to 23 countries markets with the added benefit that investors' capital is returned in full at maturity regardless of the performance of the markets, subject to the credit risk of Barclays Bank plc.
The Emerging Markets Optimiser is a six year investment plan which offers exposure to the iShares MSCI Emerging Market Index Fund using the Optimiser Strategy. The product is available until 17th January 2012.
The Optimiser mechanism itself is straightforward - historical equity market trends show that volatility tends to be higher when markets are falling and lower when they are rising. The Optimiser aims to exploit this behaviour by increasing exposure when volatility is low and decreasing it when volatility is high, which gives the potential for outperformance in both rising and falling markets. It is important to note that as with all investment offerings, there is still risk associated with this product, and it is possible that returns produced may be less than that of unadjusted investments in the same market, should the strategy not achieve its aim.
Richard Henry, Director, Investor Solutions, Barclays Wealth comments: "Amidst current market turbulence, the Emerging Market Optimiser is a valuable addition to investors' portfolios. It could particularly suit those who are seeking access to the sector, but are looking to hedge some of the risks associated with investing in it."