Barclays Asset Management has launched an 18-month retail investment product in France, which aims for a maximum return of 10%. 'Monecap'ten' is novel in that it is able to offer investors 100% capital protection within a short-dated instrument. Barclays purchased a zero coupon bond to protect investors' capital and the growth is achieved through an option on a basket of 20 stocks. At the end of the term, each stock that rises or stays the same is recorded as gaining 10%, but each stock that falls will have its negative performance recorded. Growth is calculated as the average performance of each stock.
"There is a lot of demand for this part of the curve," said Nassim Cheurfi, fund manager at Barclays in Paris. Cheurfi said the structuring group is working on a five- or six-year product for its next issue, but will look to offer another short-term product in the near future if it is able to create favorable terms.
