The threat to fund managers

Feature

In July, the Bundesverband Investment und Asset Management (BVI), Germany’s trade association for the mutual fund industry, launched a broadside against the country’s structured products providers.

In a statement, the BVI complained that investors that buy certificates – the most common form of structured product sold to retail investors in Germany – are “totally exposed” to the price provided by the issuer. The BVI stated that the prices paid by investors are often above fair value, and it went