Premier Optima Series 4 Fund
is a fund of 3 funds; a commodities index fund, a European equity
fund and an emerging markets bond fund. It matures in 10 years with
a capital guarantee from Barclays Bank. It offers good prospects
of achieving above average growth, as it combines 3 different asset
classes and investment styles with low cost capital protection.
In addition, there is a version with a loan facility built in to
double your investment stake.
- The notes are issued by Barclays Bank and have a 10 year capital
guarantee upon maturity. The amount of the guarantee will be set
at the highest price achieved by each individual sub-fund prior
to the closing date for applications.
- The underlying funds are:
• Gartmore European Select
Opportunities (rated AAA by Standard & Poors)
Invests in a broad range of European stocks with approximately
50% of the Fund invested in large companies. Launched in 1984,
the fund has achieved an annualised growth of 13.2% over the last
10 years and has £1.79 billion under management.
• The Diapason Rogers Commodity
Index Fund invests in the Rogers International
Commodity index. This index represents a “basket”
of commodities employed in the global economy, ranging from agricultural
products (wheat corn etc,) and energy products (oil, gasoline,
natural gas etc) to metals and minerals (gold, silver, aluminium
, lead etc.). Launched in July 1998, the fund has achieved an
annualised growth of 18.9%.
• ABN AMRO Global Emerging
Markets Bond Fund (rated AA by Standard &
Invests in emerging markets fixed-income securities, primarily
denominated in US Dollars, with medium and long term maturity.
Launched in May 1998, it has achieved an annualised growth of
20.8% and has over $1.8 billion under management.
- A Target Redemption Feature to enable investors to realise
the increase in the value of their investment:-
i) if, during the three years after the end of the subscription
period, the reference price related to the underlying
Notes reach £1.30, US$1.30 or €1.30, they will be redeemed
at that time or
ii) if the increase referred to above is not achieved during the
first three year period, then investors have a second opportunity
of early redemption, which will occur during the fourth and fifth
year after the end of the
subscription period if the reference price related to the underlying
Notes reach £1.50, US$1.50 or €1.50.
- access to a diversified portfolio of assets with outstanding
- participation in rising equity commodity and emerging market
bond markets but with diversification of assets to protect against
any single market exposure;
• tax efficiency - investments can be made to suit investors’
• multi-currency - available in £, US$ and €;
with a minimum investment of £10,000, US$15,000 or €15,000.
- choice of 3 funds depending on currency of investor's choice.
The underlying funds are hedged to the currency of chosen Optima
There are 2 ways of investing in the fund:
- Managed Guaranteed Option.
This is a straightforward investment with protection of your initial
investment. If the early redemption is not triggered, you exit
in 10 years time at the higher of the sum of the individual fund
price or at the initial investment price, whichever is the higher.
- Optima Select.
The investment amount will be matched with a 1 for 1 loan, therefore
doubling the investment stake, to offer increased exposure to
the underlying investments and potentially greater returns. The
doubled investment operates in the same manner as the Optima Managed
Guaranteed version. Optima Select can boost returns if the underlying
investment achieves returns higher than the cost of borrowing.
You should note that if the annual returns from underlying
investments are less than the cost of borrowing, then the value
of your investment in Optima Select will fall. The cost
of borrowing is deducted at the time of redemption.
Note: For full details of the loan arrangements please refer to
the Scheme Particulars.
Each of the 3 currency funds will close on May 1st 2007 or earlier
when it receives investments totalling £50m / €50m /
$50m. The launch price will be set at the highest price the fund
achieves between its opening on May 1st 2006 and the launch date
and this price will form the basis of the capital guarantee.
Early Redemption Charge:
Time participating shares held:
Redemption penalty (reducing by 0.5% per quarter)
Sixth year and thereafter
No early redemption permitted
8% to 6%
6% to 4%
4% to 2%
2% to 0%
The dealing date is the 1st of the month with applications needed
by the preceding 20th and funds by the 25th.
£10,000, US$15,000 or €15,000.
Security & Corporate Structure:
The Royal Bank of Scotland Trust
Company (IOM) Ltd
PriceWaterhouse Coopers - regulated in the
Abacus Financial Services - regulated in the
The Notes Issuer
Barclays Bank PLC
If redeemed before maturity, this fund may go down in value
as well as increase. This risk is reduced the longer the investment
is held. Past performance is no guarantee of future performance.
* indicates a Friends Provident International Ltd Mirror Fund