Premier Optima Series 3 Fund
This is a fund of 3 funds; a hedge 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 facilty built in to double your investment stake.
The Optima Managed Guaranteed Option offers:
- 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.
Av annual growth: 13.0% over past 10 years, last 12 months growth:
32.8% ranked 4/58 within sector over 10 years. (Base currency:
Millburn Ridgefield Corp
Diversified Trading Company 2
Trades approximately 80 currency, interest rate, stock index,
energy, metal and agricultural commodity futures, forward contracts
and options on US and international exchanges and in the interbank
Av annual growth of strategy: 9.4% since inception in 1995, last
12 months growth: 12.9%. Over $958 million under management. (Base
currecy: US dollars)
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.
Av annual growth: 19.7% since 1988, last 12 months growth: 19.3%.
Over $1 billion under management, S&P awarded best 1
year performance in 2004 and best 5 year performance 1999-2004.
(Base currency: US dollars)
Performance figures are at the end of July 2005.
- 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$1.50 or €1.50.
- access to a diversified portfolio of assets with outstanding
- participation in rising equity and bond markets but with diversification
of assets to protect against any single
• tax efficiency - investments can be made to suit investors’
• multi-currency - available in £, US$ 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
Each of the 3 currency funds will launch on May 1st 2006 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 2005 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
Ernst& Young - regulated in the IOM
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