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Barclays Wealth Reissues Emerging Markets, Commodities Plans

Wendy Spires Deputy Editor 7 August 2009

Barclays Wealth Reissues Emerging Markets, Commodities Plans

Adding to an already bumper week of product relaunches, Barclays Wealth has reissued its Emerging Markets Optimiser and Light Energy Commodity Plan - protected investments the firm says are designed for cautious investors seeking exposure to more esoteric asset classes.

The Emerging Markets Optimiser, which carries a five-year term, provides exposure to the iShares MSCI Emerging Market Index fund, an exchange-traded fund which gives exposure to 22 emerging markets, with a heavy weighting to the BRIC countries. In addition to offering unlimited upside potential and full capital protection at maturity, the product employs a dynamic allocation strategy which adjusts its participation to the iShares ETF depending on volatility, effectively smoothing returns, Barclays Wealth said in a statement.

The Light Energy Commodity Plan, meanwhile, provides exposure to the S&P GSCI Light Energy Index Excess Return, an index representative of the performance of 24 commodities from the energy, industrial metals, precious metals, agriculture and livestock sectors.

This five-year, protected capital plan offers 100 per cent of any rise in the index up to a maximum return of 75 per cent. The final index level is averaged over the last six months of the plan’s term.

“The long-term investment case for both emerging markets and commodities remains very strong. However, these tend to be areas that are off the radar screen for investors unwilling to accept the risks that inevitably come with investing in volatile sectors and markets,” said Lisa Chaudhuri, manager, Barclays Wealth.

“The emerging markets and commodities investments we are launching have been specifically designed to offer investors an attractive way to access the performance potential and diversification benefits of these key markets without having to put their capital at risk.”

This week has also seen the reissue of Barclays Wealth’s Defined Returns and Target Growth plans.

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