Barclays reissues Emerging Markets Optimiser

Barclays Wealth is reissuing its ground-breaking Emerging Markets Optimiser, as ongoing market turbulence continues to boost demand for investments offering lower risk exposure to high growth areas.

The second issue of the five-year Optimiser will open on 7 April following a successful initial launch which saw Barclays top up its original tranche due to strong demand.

The Optimiser, the investment terms of which remain unchanged, is linked to the iShares MSCI Emerging Markets Index Fund, an ETF managed by Barclays Global Investors. This index fund gives broad emerging markets exposure, with BRIC economies specifically accounting for 45 per cent (as at 31 December 2007). There is also exposure to key developing markets such as South Korea, Taiwan and South Africa.

To deliver the return, the investment employs an innovative strategy which uses market volatility to determine a daily participation rate in the performance of the fund. When volatility of the fund is high, the participation level will fall, and when volatility is low, participation levels will increase.

At maturity clients will receive the full return from the index fund as well as their initial capital, regardless of the fund’s performance.

The minimum investment is £3,600.

Colin Dickie, director, Barclays Wealth, says: “The success of the first issue of the Optimiser demonstrated real investor demand for an investment that can offer both dynamic exposure to an exciting sector and full repayment of their capital. We believe that, with market turbulence showing little sign of abating and diversification becoming increasingly important, the new issue will prove at least as popular as the last.”