Barclays Wealth has launched the fourth issue of its Emerging Markets Optimiser, as investors seek alternative ways to access high growth but volatile investment areas.
The Optimiser offers protected exposure to emerging markets. It initially launched in February 2008 and has attracted more than £50m in its first three tranches.
The latest issue retains the Eastern European option introduced in June, which offers a return based on two indices. The RDX trades Russian shares quoted on the London Stock Exchange while the CECE Traded Index is representative of the shares in the Polish, Hungarian and Czech stock markets.
This option employs a risk-adjusting strategy to determine a daily participation level to the performance of the underlying markets, so when perceived market risk is high, typically during periods of high volatility, the participation falls and vice versa.
The more broadly focused global option is linked to the iShares MSCI Emerging Markets Index fund, an ETF providing exposure to 22 developing markets including BRIC, South Korea and South Africa.
Both options have five-year terms, at the end of which investors receive the investment return plus their initial capital. To receive full capital protection investors must hold the investment until maturity. Minimum investment is £3,600 and IFA commission is 3%.
Colin Dickie, director at Barclays Wealth, says: "When launched many said that the risk adjusting mechanism was too difficult to understand but there is clear evidence that this unique feature is starting to find its mark.
“With three issues behind us, we are seeing increasing numbers of IFAs starting to use this product, which we believe is a genuine alternative to traditional fund based investments.”IFAonline
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