Barclays Wealth reissues Emerging Markets Optimiser

Barclays Wealth has reissued its popular Emerging Markets Optimiser for investors looking for exposure to developing economies without the risks usually associated with this highly volatile sector.

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 20 emerging markets with heavy weighting to the BRIC markets.

Through its pioneering dynamic allocation strategy, the 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 the investment return 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.

Lisa Chaudhuri, vice president, Barclays Wealth, says: "The resurgence of market volatility in the past weeks has prompted investors to re-consider their unprotected equity exposure. Our Emerging Market Optimiser, currently in its 10th issue, helps to smooth this volatility by adjusting its exposure to emerging market equity on a daily basis. The knowledge that capital will be returned at maturity irrespective of market performance should also be very reassuring for investors."