CNP Assurances has started distributing the Protect 80 Fund in France.
The fund, which was first launched last month and is linked to a fund managed by Carmignac Gestion and a synthetic monetary asset, is issued via special purpose vehicle (SPV) JPMorgan Structured Funds, while BNP Paribas Securities Services is acting as the deposit-taker.
The product features a variable proportion portfolio insurance (VPPI) payoff, allowing the investor to have a higher exposure to the risky asset when the markets are rising. “CNP Assurances is trying to develop the unit-linked segment, due to the higher profitability and solvency levels it offers”, Pascal Hunaut, project manager at CNP, told SRP.
“With the eight-year decreasing trend of euro funds rates, we need to find alternative solutions to improve the return”, said Hunaut.
“Unlike euro-croissance contracts which offer a capital protection after eight years, the Protect 80 Fund offers a constant partial capital protection,” Hunaut said. “Furthermore, Carmignac funds are very transparent and liquid.”
The euro-croissance contracts – life insurance products which saw their genesis in the Berger-Lefebvre report and invest some of the money collected in small and medium enterprises – were created to offer higher returns than classic euro funds.
CNP is also distributing another type of portfolio insurance product in the shape of Sélection Protection 85. This is a constant proportion portfolio insurance product (CPPI) where the volatility is constant and does not depend on market growth.
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