Uncertain certificates

Changes to German tax laws made last year have given a boost to the country's fund business, at the expense of certificates. Various new fund structures have been launched, with more in the pipeline. By Wietske Blees

Certificates have long had a virtual stranglehold on the German structured products market. In fact, so dominant has the wrapper been, that both dealers and investors tend to use 'certificate' interchangeably with 'structured product'. This year, however, there has been a shift in the balance of power. Following a clampdown on their tax-exempt status by the German government last year, certificates are starting to lose their sheen. In their place, tax-aware investors are starting to turn to