Following a decline in investor confidence lower risk ethical products including a with-profits fund, screened bond funds and a CPPI fund have come to market
Investor confidence has taken a few knocks over recent years, causing many investors to either shy away from the financial markets or to seek solutions that offer improved peace of mind, as noted by the FSA in their Financial Risk Outlook 2005. As a result we have seen a preponderance of new products seeking to meet this need. One solution has been constant proportion portfolio insurance (CPPI), which, as explained in an AKG report in May 2005, "enables an investor to protect part or all of the capital value of his investment, while benefiting from a proportion of any increase in the inv...
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