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
