ISLANDERS are opting for an increasing number of guaranteed income investment products, according to a local wealth manager.

Barclays Wealth has seen a growing demand for low-risk investments and is catering for that with regular launches of such products, which aim to reduce the risk of losing money as global stock markets react to the financial crisis.

‘Many islanders have suffered significant losses in the value of their shares, savings and investments and this has led them to review their investment plans and turn to other products which they consider to be a safer option,’ said Greg Ellison, the company’s head of local markets.

‘In particular, we have seen a huge increase in demand for fixed-income products, which pay a fixed, annual return and repay capital in full at the end of the term.’

In stock markets across the globe, there has been substantial volatility.

Iceland, which, because of the demise of Landsbanki, has been the most prominent example of the effects of the credit crunch, saw its stock market tumble 94% in 2008. Bulgaria’s fell 80% while Ukraine, the UAE, Serbia, Lithuania and Romania all suffered hits in their stock-market performance of more than 70%.