Blue Sky unveils third Protected Income Plan

Blue Sky Asset Management (BSAM) investment boutique has launched a third tranche of its six-year Protected Income Plan (PIP), which offers a fixed 10% income per year and 100% capital protection. The PIP III plan is linked to a portfolio of five UK banks, comprising HSBC, Royal Bank of Scotland, Barclays, HBOS and Lloyds TSB.

While the fixed income is not linked to the performance of the portfolio, the 100% capital protection provided at maturity is subject to a downside portfolio barrier level of 65%, which allows for all the stocks to fall by up to 65% without capital at risk. The plan offers investment returns of 2.45% on a quarterly basis, or 68% roll-up over the life of the product. PIP III is open until May 23 and Isa transfers are available until May 1.

The downside portfolio barrier level is only breached if