Our June 2009 newsletter featured capital protected products and highlighted some of the pitfalls investors have recently encountered with Threshold Managed/CPPI structures such as Perpetual Protected Investment Series and Macquarie’s Fusion Fund range. Based on the level of enquiry we have had, I feel compelled to revisit Threshold Managed/CPPI capital protection as many of these products are now cash locked (or as good as) with no prospect of achieving a positive return. For many, switching
Search results of Tag: CPPI
cash locked CPPI capital protected product solution
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-)
Increased volatility bad for CPPI / Threshold Management
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
