Zurich has set up a unit-linked multimanager fund which uses constant proportion portfolio insurance to protect 80 per cent of the fund’s highest value.The multi-manager protected profits fund applies CPPI to a portfolio of four actively managed funds – Cazenove UK growth and income, Gartmore European selected opportunities, Newton higher income and DWS American. This multi-manager portfolio comprises up to 70 per cent of the overall fund, with the remainder invested in cash through the Barclays liquidity first fund. Under the CPPI process, equity exposure will be increased when the fund performance is strong but reduced in favour of cash when performance is weak, thereby protecting 80 per cent of the highest fund value. The fund can be accessed through Zurich’s sterling investment bond, Isa, Pep transfer plan, investment account and pension products. Zurich believes that the fund could be used as an alternative to with-profits, although it stresses it is not marketing the fund as a replacement for with-profits funds. Compared with traditional with-profits, the Zurich fund has transparent charges of between 0.85 per cent and 1.85 per cent, depending on the product wrapper used.No MVRs will be applied and daily pricing enables investors to see exactly how much their investment is worth. Using CPPI in a unit-linked fund is not unique and examples of other funds using CPPI include Friends Provident’s optimiser range. Zurich stands out from the rest as it uses an actively managed basket of funds rather than tracker funds which gives the company the potential to outperform indices rather than simply track them. However, one potential drawback of the Zurich product is that although the selected funds will be reviewed periodically and replaced if necessary, there may be better funds out there that are ignored in between reviews.