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Blue Sky launches absolute return product

Blue Sky Asset Management has developed an absolute return structured product linked to the performance of the FTSE 100.

The Absolute Return Plan runs for six years and will capture any movement in the index annually, either up or down, and record this as a positive absolute return up to a maximum 12.5% each year. The starting level of the FTSE 100 is rebased each year.

At maturity, the accumulated annual returns are payable with a minimum 45% and a maximum 75%, as long as the index is at or above its starting level, with no growth required, the group says.

There is a contingent capital protection measure in place if the FTSE ends the six-year term below its starting level. It requires the index to have fallen by more than 50% at maturity in 2015, before capital is at risk. The capital protection cannot be breached during the investment term.

The Absolute Return Plan is open with immediate effect and will close to new business on November 9. The deadline for Isa transfers is October 26.

Minimum investment is £10,000 for direct investment or £7,200 for Isas.

The counterparty for the plan is an A+ rated institution, which Blue Sky says it will only disclose to wealth managers at the point of marketing.

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