BSAM’s fourth issue of the asset allocation accelerated plan is designed to outperform the US, UK, Europe or Japan equity market while providing 100 per cent capital protection contingent upon 50 per cent downside barriers. The plan also offers a ‘phased entry’ for investors with three-month front end averaging to minimise investment timing risk.
The new capital accumulator auto-call plan – dual index series targets 11 per cent annual growth and triggers accumulated annual coupons based upon the FTSE 100 and S&P 500 indices providing they are at or above their initial starting levels at any anniversary over an eight year term. The plan also offers a 50 per cent downside barrier measured at maturity in 2016 not continuously through the investment term.
BSAM is disclosing the counterparty for both plans as AA-rated Barclays bank.
Minimum investments are £10,000 for direct investment, or £7,200 for Isas in either plan.
Blue Sky Asset Management chief executive Chris Taylor says: “Global events have been dramatic recently and will have rattled investors’ nerves. However, the turmoil has shown that risk is not isolated to equities and that cash is not the ultimate safe haven – especially following an immediate global interest rate cut, and with the probability of further and possibly deep rate cuts to come, as recession risk increases.
“BSAM’s new plans offer immediate solutions for leading professional advisers aiming to proactively deliver value adding, forward looking advice that can genuinely and positively improve the risk and return profile of portfolios.”