A structured solution

A raft of German insurers are looking to use the latest generation of CPPI technology to increase returns while at the same time conforming to the country's strict investment rules. But are these products as well risk managed as their backers claim and what challenge do asset managers pose? Aaron woolner reports

The restrictive regulation of traditional German life products in general and Riester pension products in particular in the German market has left companies and individuals with few options when making retirement provision. Financial law stipulates an approach which limits the potential for equity exposure - a limitation which of course also restricts potential returns.

A number of German companies are instead looking to circumvent this issue by instead moving down the road of constant proportion