Bear markets in stocks have prompted UK investment firmBlue Sky Asset Management to launch the third issue of its capital-protected equity fund.

Blue Sky said its Asset Allocation Accelerated Growth Plan reduces risk and provides accelerated returns on the world’s major stock markets and is available through retail intermediaries and institutions.

The fund has been designed to deliver out-performance potential in any major market selected by investors – the US, UK, Europe or Japan – as well as provide 100 per cent capital protection at maturity, so long as markets do not fall by more than 50 per cent.

The product is structured over a six-year term and allows investors to select their own asset allocation to the respective stock markets – including individual market weightings, or any combination of all four markets.

The first tranche of the plan was launched in February and the second in May.

“There is no escaping the fact that the current global economic backdrop is difficult – with slowing growth, rising inflation and every likelihood of continuing investment headwinds leading to lower investment returns in future years. The ‘ride with the trend’ easy returns of the last five years have disappeared for investors,” said Chris Taylor, chief executive at Blue Sky Asset Management.