Barclays launches China-linked structured product

The product, designed for investors seeking low-risk China exposure, is linked to the FTSE Xinhua 25 index. The vehicle applies a dynamic allocation strategy, which smoothes returns by adjusting exposure to the index on a daily basis. The level of exposure to the index decreases when the index fund becomes volatile and increases when conditions are calmer. Investors gain 65% of the return derived from this strategy, and full capital at maturity, regardless of index performance. But if investors withdraw from the investment before the six-year expiry date, capital is at risk. Lisa Chau...