Barclays Capital Launches Dynamic Golden Allocation Fund
Offering investors an opportunity to benefit from the inverse relationship between gold prices and USD
Hong Kong – Barclays Capital, the investment banking division of Barclays PLC, one of the world’s major providers of retail structured products in Europe, Singapore and Hong Kong, today announced the launch of its Dynamic Golden Allocation Fund (the "Fund"). The Fund utilises a unique strategy that aims to benefit from the inverse relationship between gold prices and USD. The Fund enables investors to benefit from the long term capital appreciation of gold related assets.
The Fund is allocated through a combined static portfolio and dynamic portfolio. On each monthly rebalancing date, the Fund will invest 30% of its net asset value in gold investments linked to the performance of gold prices. A dynamic allocation of 70% of the Fund’s net asset value will be invested between either a basket of gold related equities or USD futures, where investors can benefit from the potential positive returns generated in different market cycles.
The dynamic portfolio, is determined monthly by three major indicators including US money supply, US CPI and analysts’ forecast for gold equities. If the dynamic portfolio for the month is the gold related equity basket, the Fund will make allocations to gold related equities based on factors such as historical performance, correlation to gold prices, etc.
Through the Fund, investors will gain exposure to the potential investment growth of both gold prices and gold related equities. The allocation to gold related equities provides the additional benefit of a proprietary stock selection strategy while the USD investment may help to reduce downside volatility in the downside of gold price.
Commenting on the launch of the Fund, Wendy Kwan, Director of Investor Solutions at Barclays Capital said, “In view of the recent market interest for investing in gold, the launch of our Fund is timely. The Dynamic Golden Allocation Fund offers investors an innovative investment strategy to capture the potential return from the historical inverse relationship between the price of gold and the US dollar.”
The Initial Offer Period of the Fund in Hong Kong is from 11 January to 5 February 2010, with an Initial Issue Price of HKD100 or USD100. The Fund will be distributed in Hong Kong through Bank of Communications, Convoy, KGI, Noble Apex Advisors Ltd., Philip Securities Group, RBS, Shanghai Commercial Bank, Sun Hung Kai Financial and Wing Hang Bank.
Barclays Capital is a recognised global leader in structured products and derivatives, having been named Risk magazine’s Structured Products House of the Year for 2007, Inflation Derivatives House of the Year in 2006 & 2007, and Currency and Commodities Derivatives House of the Year in 2006.
Regionally, Barclays Capital was named Wealth Management House of the Year in 2009 by AsiaRisk magazine; Best Commodities Derivatives House for 2009 by The Asset; FX House of the Year 2008 by FinanceAsia; Structured Products House of the Year, Asia 2007 by Structured Products magazine; Currency Derivatives House of the Year 2006 by AsiaRisk magazine, and The Asset’s Best Currency Derivatives House & Best Commodity-Linked Structured Product in 2006.
For further information please contact:
Angie Tang, Barclays Capital Corporate Communications, Asia Tel: +852 2903 2305
Notes to editors:
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a full spectrum of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs 20,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide.
For further information about Barclays Capital, please visit our website www.barclayscapital.com.