Customer magazine universal spotlight - winter edition 2023/24

Dear reader,

Nothing is as constant as change – something we are all experiencing anew each day. Those managing portfolios are continuously facing new challenges. Our dynamic, rule-based FX overlay can provide essential support – it’s tailor-made for increasingly volatile currency markets. This edition of our newsletter gives you an insight into how exactly this works. We will also explore investment opportunities in infrastructure and real estate, significantly enhanced by open-ended mutual infrastructure funds and especially by ELTIF 2.0, encompassing the retail sector as well.

We are observing a trend where institutional investors are increasingly opting for active fund managers. This edition will delve into why the challenging task of fund selection is becoming more crucial and why having a visionary sparring partner is essential in this process.

Universal Investment and its clients are on a path towards a bright future. This is also emphasized by Markus Neubauer in his farewell speech. As Managing Director, he has been instrumental in shaping our company into a leader in the German market, always prioritising our clients. We are very grateful for his significant contributions. He now retires after 36 years with Universal Investment.

In the coming year, we are excited to welcome Francesca McDonagh as our new CEO. She is dedicated to driving Universal Investment forward, enhancing our client-centric solutions. Amidst these changes, our steadfast focus will remain on our home market, the DACH region, a fundamental part of Universal Investment's DNA.

On behalf of our entire team, I would like to extend a heartfelt thank you for your trust and partnership in 2023. We wish you and your families a joyful holiday season and look forward to a successful new year with you.

Sincerely,

Katja Müller

Managing Director / Chief Customer Officer

Insights

FX Overlay with a clear goal: Raise returns, reduce currency risks

The FX overlay can help decisively with new challenges. Source: iStock/Koonyongyut

With the end of the global era of low interest rates and amid significant geopolitical tensions, currencies have also been experiencing sharp fluctuations. Professionals responsible for managing portfolios must now, more than ever, keep a close eye on currency risks. It is crucial to keep costs as low as possible in FX Overlay. With Universal Investment, institutional investors and asset managers have a leading and experienced fund service partner at their side who can tailor both static and dynamic, signal-based overlay strategies to meet specific needs. With this support, it is possible to cover hedging costs and, in some cases, generate positive returns.

Background

ELTIF 2.0 and OIS: Momentum for infrastructure investments

The market for infrastructure investments is gaining momentum.
Source: iStock/Vanit Janthra

New regulations aim to stimulate investments in European infrastructure. What opportunities and challenges will arise from the amended European Long Term Investment Fund (ELTIF) and open-ended infrastructure funds in the form of German Sondervermögen (OIS)? Andreas Gessinger, Area Head Relationship Management Fund Initiators at Universal Investment, discusses this question with Marco Simonis, Partner, Lawyer and Tax Advisor at Clifford Chance, Norman Finster, Consulting Partner and Alternative Investments Leader at EY Luxembourg, and Markus Bannwart, Head of Capital Markets & Fund Structuring at Universal Investment.

Trends

Bridge builder for institutional investors

Brückenbauer für institutionelle Investoren

Photo: Oliver Fischer;
Source: Alex Habermehl

“Active managers demonstrably add value," states Oliver Fischer, Head of Fund Distribution at Universal Investment. In this universal spotlight interview, he discusses why he thinks rigorous fund selection is regaining importance and how institutional investors can get support in finding promising fund strategies beyond their usual scope.

Events

From congresses to panel discussions and award ceremonies, Universal Investment will be joining various events in the first half of 2024:

FONDS professionell KONGRESS, from January 24^th to 25^th, in Mannheim
Institutional Money KONGRESS, from April 9^th to 10^th, in Frankfurt am Main
BAI Alternative Investor Conference (AIC), from April 23^th to 24^th, in Frankfurt am Main

Source: iStock/MicroStockHub

Universal Investment looks forward to connecting with you!

You can find more details on the Events webpage.

Investors realign: Axel Vespermann on new trends in real estate

Source:
Universal Investment

Investors are holding on to real estate. It remains an essential pillar for many portfolios. One of the frequently cited reasons for this is the protection against inflation that this asset class offers. According to a recent real estate survey conducted by Universal Investment, institutional investors allocate, on average, about a fifth of their assets to brick and mortar. Nevertheless, as the survey also shows, investment priorities and preferences are shifting. In his video statement, Axel Vespermann, Head of Real Estate at Universal Investment, explains what this means.

Private equity: An (asset) class of its own

Photo: Dr. Sofia Harrschar;
Source: Alex Habermehl

Private Equity is, and will continue to be, an important asset class in the portfolio allocation of institutional investors. However, no one-size-fits-all approach can cover its investment structure. How tailored structuring can look like, and what must be considered when designing it, explained by Dr. Sofia Harrschar, Head of Alternative Investments and Structuring at Universal Investment.

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©2023. All rights reserved. This publication is exclusively intended for the use of professional and semi-professional investors and is not intended for private investors. This publication is for marketing purposes only. The information provided should not be taken as recommendation or advice. The opinions expressed in this publication reflect the current views of Universal Investment and are subject to change without notice. We are using information based on publicly available sources which we consider to be reliable. We cannot guarantee the accuracy or completeness of the information, and no statement in this publication is to be understood as such a guarantee. Information on historical performance do not allow conclusions about or otherwise guarantee future performance. Universal Investment does not assume any liability incurred from using this publication or the information contained therein. Copying, passing on or making changes to this publication or its contents are subject to the prior express consent of the author or Universal Investment.