Both funds aim to deliver returns, using a dynamic rules based investment approach which aims to benefit investors in both upwards and downwards market trends.
Barclays said that the trend funds will represent a cost efficient solution, without performance fee, for those investors seeking a low-volatility UK equity investment with an absolute return overlay.
According to the Barclays, both funds are linked to the Barclays FTSE 100 Trend Total Return Index which adopts a straightforward, rules-based approach with three key steps.
The wealth manager said the first step aims to identify if the market is in a positive trend, negative trend or if no trend is discernable.
Once a trend is identified the second stage is employed whereby the fund examines market volatility and defines the level of exposure to the underlying index within a range of 0-100%.
In a positive trend the fund will take a long position in the Index (the FTSE 100 Total Return Index) and in a negative trend the fund will take a short position. If no trend is identified or markets are too volatile the fund allocates to cash.
According to the wealth manager, the IFSL Barclays FTSE 100 Trend Fund employs a smart stop feature which aims to insulate investors from significant market falls.
A defensive allocation to cash is triggered should the index experience a fall of 2.5% or more over a five business day rolling period. This pre-set allocation rule aims to reduce downside risk in extreme market scenarios.
The IFSL Barclays FTSE Protector 80 Trend Fund employs a technique whereby it allocates between the strategy and cash depending on market conditions.
Therefore if market conditions are favorable, the fund will tend to increase exposure to the strategy and less to cash – and visa versa. Ultimately the fund will be run with the objective of protecting 80% of the highest ever NAV price.
Barclays Wealth director of investor solutions Richard Henry said the trend funds are ideal for investors seeking core UK Equity exposure. Their potential to deliver stable, positive returns whether the market direction is upwards or downwards make for an attractive proposition as markets continue to exhibit uncertainty.
