Emerging Markets Optimiser

The Emerging Markets Optimiser (EMO) is an innovative investment offering protected exposure to more than 20 developing countries around the globe. The EMO is a five-year investment which seeks to exploit the growth potential of emerging markets while simultaneously managing the levels of risk associated with this vibrant sector.

The EMO is linked to the performance of the iShares MSCI Emerging Markets Index Fund which gives your clients access to the market performance of 23 countries with a combined capitalisation of around $5 trillion - around 42% of which has exposure to the BRIC markets (Brazil, Russia, India and China). The iShares fund is managed by Barclays Global Investors and has almost $20billion invested. (Source: BGI, September 2008)

Investment Protection
EMO offers investment protection through the repayment of capital for clients investing for the full five years. So regardless of how the investments perform during the interim, your clients will receive their capital in full at maturity.

The Optimiser – A Dynamic Investment Strategy
The Optimiser seeks to provide investors with a solution to enhance both risk management and investment performance. Using a dynamic strategy, the Optimiser adjusts its daily exposure to the performance of the options according to volatility levels. When actual volatility is higher than target* volatility, investors’ exposure to the index falls; when volatility is lower, exposure increases.

As volatility is normally associated with falling markets, the Optimiser is designed to enhance performance by protecting your client against falls while maximising market gains.

†Target volatility is 17 per cent for the five-year term

For a full example of the Optimiser in action see the Flash Presentation above.

Please ensure you read the brochure, key features and terms and conditions for this investment, where the strategy and the associated product risks are explained in full.