Barclays Capital, the investment banking division of Barclays Bank PLC, has launched the Emerging Market Index Linked Structured Deposit Account as part of its Structured Deposit Series for Offshore Bonds.
The Emerging Market Index Linked Structured Deposit Account offers return of capital on maturity, along with an interest payment linked to the Barclays Capital E7 Risk Controlled 15% EUR Excess Return Index.
The Barclays Capital E7 Risk Controlled 15% EUR Excess Return Index provides exposure to the shares of the largest companies from Brazil, Russia, India, China, Indonesia, Turkey and Mexico, within a risk framework that looks to deliver 15% volatility, by allocating between these shares and cash.
The index tracks the outperformance of this risk controlled basket above what would be achieved through a Euro cash investment.
The Account is a three year, nine month deposit that offers Euro investors a medium term traditional growth style product linked to Emerging Market equities. The payoff at maturity is return of initial capital plus an investment return of the rise in the Barclays Capital E7 Risk Controlled 15% EUR Excess Return Index capped at 45%.
David Macdonald, Head of Retail Insurance Solutions at Barclays Capital, commented, “Investing in Emerging Market equities is widely seen as a way to potentially make significant gains, however for many the risks associated with an EM equity investment are too great to jump straight in. This deposit provides a lower risk way to gain exposure – both through the risk control mechanism within the index and the security of full capital return on maturity.”
Designed exclusively as an investment link for use within contracts of insurance, the Euro denominated account requires a minimum investment of €20,000. Access to the deposits is not available directly, but via most offshore life bond providers (based predominantly in Isle of Man, Dublin and Channel Islands) and select UK onshore life insurance company wrappers. The account is available from 1 December 2011 to 30 January 2012.
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