The cost of protection

Protected or structured funds have come into their own over the past five years. The bear market from 2000 to 2003 has obviously played a major part in creating a demand for this type of product, but it is also been interesting to note that the supply of these products has come, not from the fund management industry, but from the life assurance companies and banks. To some extent the fund groups have had their hands tied by the product regulations they have had to contend with, so it is only recently that they have had the scope through Ucits III and the new COLL regulations to attack th...