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Barclays Wealth reissues emerging markets optimiser

Barclays Wealth has launched the fourth issue of its emerging markets optimiser.

Launched in February, the optimiser offers protected exposure to emerging markets and has attracted over £50m investment into its first three tranches since the launch.

The latest issue retains the eastern European option introduced in June, offering a return based on the performance of the RDX and CECE indices.

RDX comprises Russian shares quoted on the London Stock Exchange and the CECE traded index comprises shares in the Polish, Hungarian and Czech stock markets.

The Eastern European option employs a risk-adjusting strategy to determine a daily participation level to the performance of the underlying markets. When perceived market risk is high, typically during periods of high volatility, the participation falls and when risk is deemed lower, participation levels increase.

Both options have five-year terms, at the end of which investors receive the investment return plus their initial capital and to receive full capital protection investors must hold the investment until maturity. Minimum investment is £3,600 and IFA commission is 3 per cent.

Barclays Wealth director Colin Dickie 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.”

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