Blue Sky Asset Management has launched a five-year income plan paying a potential 3.5% every six months with an autocall after a year. The launch follows the early maturity of the first issue in the series, which knocked out in January after six months with an income payment of 4.5%.
"[The only market certainty] is that interest rates are currently low, and may remain lower for longer than is currently anticipated - posing an immediate challenge to investors seeking income," said Blue Sky CE Chris Taylor.
The first six-monthly coupon is fixed at 3.5% and 3.5% is paid six-monthly thereafter if the FTSE100 is between 90% and 105% of its starting level. Should the upper barrier be breached on an observation date, the plan makes a final income payment and knocks out, repaying capital. The product has 50% soft protection. The counterparty is BNP Paribas, rated AA by S&P as SRP went to press.
High Income Corridor Auto-Call Plan will be open until 22 February. Minimum investment is £10,000.
This product is available now in Recent Additions (UK).