Blue Sky rolls out 'absolute return' plan

Blue Sky has launched an ‘absolute return' plan offering a potential payout of 75% at the end of its six-year term.

The FTSE 100-linked plan creates returns from any movements in the index, positive or negative, to a maximum of 12.5% per year. Each year, the starting level of the index is rebased, and at maturity the total returns are added together. Providing the index is at or above its starting level, the plan will then pay out a minimum 45% return or a maximum of 75%. However, if the index’s final level is lower than the starting point, no investment returns will be generated. Investors’ capital is guaranteed unless the FTSE has fallen by more than 50% in 2015, in which case capital is lost ...