"Strategic shift toward delegating tasks externally"
The investment industry undergoes transformation as geopolitical pressures and regulatory demands intensify. In the midst of these challenges, asset managers are grappling with stagnant inflows and escalating operational costs. As a major player in the German-speaking region, Universal Investment views these developments as a validation of its strategic direction, with CEO Mathias Heiß stating that "following a record year in 2021, inflows have stabilized at a lower level."
Universal Investment, an independent fund service platform, sees these changes as an opportunity for growth rather than a cause for concern. The company serves over 5,000 fund and investment structures for institutional investors, fund initiators, and asset managers, managing over 1 trillion euros in assets.
The platform market, according to Heiß, is consolidating, and Universal Investment is well-positioned in this environment. Their offerings span institutional products, insourcing and direct investments, and retail products. Despite market consolidation, Universal emphasizes the importance of diversity and openness, not just size, to cater to customers' needs.
Regulatory changes pose challenges to many market participants, but Heiß sees these as opportunities for Universal Investment. He states, "In a way, we benefit from more regulation - customers say: 'We don't want to do this ourselves anymore, please do it.'" This readiness to address regulatory demands has become a competitive advantage for the company.
Universal is also addressing the growing importance of sustainable finance by establishing its ESG Office and strengthening its sustainability organization. Heiß notes, "Obtaining data is a real challenge, but we took the lead here at an early stage."
Technological advancements are key to Universal Investment's strategy. Heiß highlights the potential of artificial intelligence in the area of fund administration, particularly for securities funds. By creating end-to-end data flows, they aim to streamline operations, enhance reporting, and automate manual processes.
Europe is gaining in strategic importance, according to Heiß, who sees it as an opportunity for Universal Investment. The company, which has a truly international presence, is aiding clients in navigating international markets. Despite this expansion, Heiß stresses that the domestic market remains the core of their business.
Founded in 1968, Universal Investment offers services in administration, structuring, and risk management. With around 1,700 employees and over 55 years of market experience, the company aims to grow alongside its clients and become the leading fund platform in Europe.
- Universal Investment, being well-versed in finance, business, and technology, is leveraging advancements in areas like artificial intelligence for fund administration to automate manual processes, streamline operations, and enhance reporting.
- As Europe gains strategic importance, Universal Investment, a major player in the German-speaking region, is utilizing its extensive experience in finance and business to assist clients in navigating international markets, while remaining committed to serving the domestic market as its core.
