Zurich protected profits offer

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PROTECTED PROFITS FUNDS TO BE SOLD THROUGH ZURICH-TIED ADVISERS AS WELL AS INTERMEDIARIES

Zurich is to start selling its with-profits alternative which has already taken £340m through intermediaries, via its tied advisers from the end of February. Its two protected profit funds (PPF) use constant portfolio protection insurance (CPPI), meaning the fund's value will not fall lower than 80% of its highest-ever value and will provide up to a maximum 70% exposure to the equity market. Under CPPI, the funds offer a greater exposure to equities when the stock market is performing well and offer less when the stock market is lower. In effect, each day, some of the PPF's portfolio is...