Funds Focus

Unlocking Cash Locked Capital Protection

Tackling the shortfall – Where to from here?

Once you have made the decision to move from your CPPI / Threshold Managed Product, for many, the problem is a shortfall on the investment loan. Deciding to redeem your investment early may result in you needing to fund a shortfall between the loan and investment amount.

There have been some efforts to provide an alternative

Perpetual launched their seemingly counter-intuitive “Fund (re-)

Capital Protection – Reading between the lines

Increased volatility is bad news for CPPI / Threshold Management

2008 saw many investors in CPPI products cash locked with no hope of getting back more than they had originally invested at the end of the investment. We consider why CPPI products are disadvantaged in a world of increasing volatility.

Investors using CPPI products such as Perpetual’s PPI Series have recently found themselves cash locked. ie in a falling market, once the

Protection when there’s blood on the streets
We have seen some significant falls in the sharemarket over the last 18 months. Increase in investor anxiety over equity investments has in turn seen a huge rise in the demand for capital protected and capital guaranteed products.

This issue’s Back to Basics considers whether now is the time to look for capital protection within your portfolio and what are the differences in the structures currently available?

One of Warren Buffett’s most