Blue Sky Asset Management has launched two structured products designed to achieve returns even if equity markets fail to rise.
Its Capital Accumulator Auto-Call offers 22.5% fixed growth potential with an automatic early redemption if the FTSE 100 and S&P 500 indices are at or above their initial levels after two years.
The Absolute Return plan offers a minimum 42.5% return over six years if the FTSE 100 is at or above its initial level at maturity with a maximum payout of 72%.
Both offer protection from stock market falls: the Capital Accumulator protects capital unless the indices fall by more than 50% during the term and the Absolute Return plan provides protection unless the FTSE falls 50% at maturity in 2016.
Blue Sky Asset Management chief executive, Chris Taylor, says these plans are designed to mitigate risk at a time when the investment outlook is unclear.
"Both of the newly launched Blue Sky plans offer wealth managers and investors innovative solutions at this time, and compelling alternatives and/or complements to traditional investment funds, including actively managed absolute return funds," he says.
"The Capital Accumulator plan offers a potentially short to medium term ‘tactical' proposition, whilst the Absolute Return plan provides a viable longer term core holding for growth portfolios.''
Both plans are open for investment now. The Capital Accumulator Auto-Call will close to new business on 18 January 2010, with the deadline for ISA transfers on 11 January. AAA-rated Rabobank is the counterparty.
The Absolute Return plan will close to investment on 25 January 2010. The deadline for ISA transfers on 8 January and A+-rated Société Générale serves as counterparty.
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