Investors who keep a close eye on Capital Protected Products and other Structured Investments will have noticed a shift in focus towards products that have a volatility overlay. This approach has generally provided investors with a smarter way of investing, basing the investor’s exposure on a comparison in the current market risk (measured by volatility) against the long term market volatility average. ie reducing exposure to the underlying investments as risk increases and increasing exposure
Structured Products – Emerging Trends & News
The structured products space has seen a resurgence in recent times. Investors have become more active in managing their money and are looking at alternatives for their portfolios.Of the structured products currently available, capital protected products are the ones most familiar to investors and we have covered these in some depth over the last few issues.Although our comparison table compares the capital protected offers currently available and provides an at a glance view on some of
Unlocking capital protected products – CPPI
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