Capital Accumulator Auto-Call Plan: Defensive Series counters low interest rates and high stock market volatility – with favourable tax treatment.

It’s not difficult to work out what investors want and need in 2009... investment options that actually work and add value. The investment challenge is easy to identify

• Interest rates and returns on cash are heading for zero or close
• Equities are currently a ‘rock and a hard place’ option for many investors
• Traditional investment funds are far from optimal solutions at this time

But, finding investments that genuinely counter low interest rates and sky high equity volatility – and that may appeal to investors – is more difficult...

Many providers in our industry are chasing headline rates... thinking this is what investors want. We, however, think many investors want the opposite. With the input of leading wealth management specialists, we’re aware that many advisers and investors are looking for the opposite, in the current economic environment: investment solutions that minimise risk and maximise the scope for solid, sensible, successful returns – without ‘pushing the boundaries’.

The Blue Sky Asset Management Capital Accumulator Auto-Call Plan – Defensive Series provides a genuine solution to plummeting UK interest rates and prevailing stock market volatility. The Plan innovatively delivers successful growth potential with defensive ‘trigger’ conditions that allow the underlying stockmarket index, the UK’s FTSE 100, to fall. The main features of the Plan are:

The Capital Accumulator Auto-Call Plan – Defensive Series III

• 	The Blue Sky Asset Management Capital Accumulator Auto-Call Plan – Defensive Series provides a genuine solution to plummeting UK interest rates and prevailing stock market volatility.

  7% per annum accumulating growth potentia
• lDelivered at the first anniversary where the • FTSE 100 is above 85% of its starting level: allowing index falls of 15%
• Contingent capital protection at maturity: that cannot be breached during the investment term
• Returns assessed against CGT
• Counterparty disclosed at point of marketing: AA rated BNP Paribas

The growth potential provides a multiple of the current UK base rate – with the benefit of CGT – even if the underlying investment link, the FTSE 100, falls.

The capital protection cannot be breached during the investment term: the barrier is only assessed at maturity in 2015 (assuming the Plan has not auto-called earlier).

The logic and rationale of a defensive investment solution in 2009, whilst the UK potentially troughs, is that portfolios can be repositioned in 12-24 months, following potential early ‘auto-call’, when the economic backdrop and outlook is (hopefully) clearer.

With interest rates now at 0.5%, but with no sign of economic uncertainty dissipating, the current period is an extraordinarily difficult time for investors – many of whom understandably feel they are caught between a rock and a hard place, in terms of identifying viable and appealing investment options. Advisers need to respond to this – the Capital Accumulator Auto-Call Plan – Defensive Series presents a solution that can meet, and exceed, investor’s needs, in the current environment.The closing date for new investments is Friday 17th April. ISA Transfers deadline is Friday 3 April. The minimum investment is £10,000, for direct investment, or £7,200 for ISAs. Explicit charges are zero. Commission for intermediaries is 2% – which can be rebated to enhance investments. The Plan can be accessed by individuals, or through pension schemes, including SIPP and SSAS, and can be used for corporate, trustee and charity investment. The Plan will potentially close early if oversubscribed.

For more information telephone 020 7096 7100 or visit www.bluesky-am.com