A reluctant embrace


French pensions funds are, it seems, still more reluctant than many of their European peers when it comes to buying into structured products designed to hedge future cashflows against inflation. Although some have employed constant proportion portfolio insurance (CPPI) techniques, or bought structured notes linked to equities or funds of hedge funds, doubts linger regarding the effectiveness of using such products in a pension portfolio.

Typically, CPPI technology satisfies a pension fund's d

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