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Blue Sky launches new ‘Auto Call’ plans

Blue Sky Asset Management has launched two plans with one offering income at more regular intervals.

The High Income Corridor Auto-Call Plan II is a five-year product which offers a 4.5% income potential every six months if the FTSE 100 remains between 85% and 105% of its starting level.

If it rises above 105% of this level, the plan will close and repay the capital with a final income payment.

Blue Sky says this should appeal to investors if the stockmarket moves sideways—as many forecasters expect—with the reassurance that income will still be paid if it falls 15%.

Meanwhile, the Capital Accumulator Auto-Call Plan – Defensive Series IV was launched for cautious investors. It offers 15% growth as long as the index is at, or above 90%, of its starting level. If the index rises by more than 7.5% a year, the plan will close returning 100% of capital. There are four opportunities for an auto-call in the six-year term.

Both plans close to new business on July 3 and minimum investment is £10,000 for direct and £7,200 for Isas.

Related story: Blue Sky plan could make net loss

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