Frankfurt am Main, February 11 2021

Universal-Investment to manage Japanese equities for institutional investor

The Frankfurt branch of Universal-Investment Luxembourg takes over a one billion Euros mandate for Japanese equities from a large institutional investor. The Portfolio Management unit transferred the fund segments, which were originally given to two active asset managers, at the end of last year. Since then, portfolio manager Joming Chiang from the Asset Management Securities unit has been managing the new portfolio with a passive approach that replicates the MSCI Japan Net Total Return index.

Investor transfers mandate of two asset managers to portfolio management of Universal-Investment Luxembourg

Passive approach for the new portfolio of approximately €1 billion replicates MSCI Japan Net Total Return Index

The move to Universal-Investment Luxembourg comes as the investor decided to change its investment strategy. Instead of an active stock-picking approach, a large part of the Japanese large and mid-cap market is now passively tracked. "The ongoing pressure to generate returns as well as the low interest rate environment is causing institutional investors to look for alternative solutions. In addition to the high demand for real estate and alternative investments, we see a concrete need for efficient passive investment solutions that can nevertheless be individually adapted to customer requirements," said Jochen Meyers, Head of Relationship Management Institutional Clients at Universal-Investment.

The takeover of the two previous fund segments and their merger began in August 2020 and was completed in October. In addition to the actual transition management, a custodian change had to be carried out for the reorganisation of the portfolio.

"We are pleased to have achieved the milestone of a passive equities mandate of more than one billion in 2020. On the one hand, this underlines the further increase in demand, but on the other hand, it also demonstrates the convincing quality of our range of products and services in the field of passive investment solutions," comments Victor Bemmann, who heads Universal-Investment’s Portfolio Management.

Portfolio Management has significantly strengthened its role in the Universal-Investment Group in recent years and increased assets under management by EUR 15.9 billion to EUR 59.9 billion in the last calendar year. One driver of this growth is a significant expansion of Overlay Management activities.

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Portfolio manager Joming Chiang

Bernd Obergfell

Head of Communications

+49 69 71043-575


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