CPPI technique is not without risk

cppi funds

CPPI funds have a credible part to play in a low-risk investment market but there are risks attached - especially with regard to charges, crash protection and determining the exact nature of the underlying assets

The last year or so has seen the introduction of several constant proportion portfolio insurance (CPPI)-driven funds as product providers seek to replace the once ubiquitous with-profits solution. However, a lot of work remains before advisers and their clients can consider themselves fully armed to make informed decisions between competing products. While initial offerings from Zurich/Sterling, Friends Provident and Axa might appear to be similar at first sight, there are significant differences in the underlying designs. When added to the general confusion around with-profits and the app...