Blue Sky gets defensive with latest autocallable

Blue Sky Asset Management has launched the third tranche of its FTSE-linked kick-out product. The Capital Accumulator Auto-Call Plan - Defensive Series III, which lasts six years, redeems on its first anniversary with a 7% return, provided that the FTSE is at 85% or above of its level at strike.

If the index is not at this level, then the plan will continue to its second anniversary - at which point returns will be 14% if the index now meets its conditions. The Plan will continue to accumulate 7% each year that is does not automatically redeem, and kicks out with a 42% return if the index meets the conditions in its sixth and final year. If the index still does not reach kick out trigger levels by this stage then investors will receive back their principal with no return. Capital is at