Products with capital protection provided by constant proportion portfolio insurance are too complicated to sell to retail investors. Jonathan Whitham, research and development manager at Bankhall, said although the structure is suitable for cautious investors, independent financial advisors find it difficult to explain how it works. "I challenge providers who say that CPPI is an easy product to understand," said Whitham.
Marie Pascale Bonhome, marketing manager at Crédit Agricole Asset Management, however, said investment in CPPI fund-linked products in particular would likely be a significant growth area for structured products.
