Frankfurt am Main, April 21 2020

Universal-Investment awarded with EUR 3.6 billion transition management mandate

Universal-Investment restructures a 3.6 billion euro portfolio for a German institutional investor after being awarded the respective transition management mandate. The portfolio is being restructured as part of a change in investment style and the associated change of ten asset managers. It has been planned for a long time and is not related to the current market situation. The global equity fund comprises large and small cap stocks as well as securities from emerging markets. This affects 22 fund segments with a total trading volume of EUR 3.6 billion. With the new mandate, the number of restructurings implemented over the past twelve months by Universal-Investment's Portfolio Management team has grown to 30 projects with a total volume of EUR 17.2 billion.

Portfolio Management team coordinates several asset manager changes for pension funds and trades shares as well as target funds worth EUR 3.6 billion

Demand for transition management services grows by 90 percent: 30 mandates with a volume of EUR 17.2 billion in the past twelve months

In the event of a portfolio transition, Universal-Investment's Portfolio Management acts as a coordinator, trader and supervisory body for the investor, if additional external specialists for trading are involved. The team around Thomas Casper takes over the trading of the existing securities in coordination with the client aynd the old and new asset managers and at the same time buys new securities in order to create the desired target portfolio in the fund. The transaction costs are lower compared to a complete sale and new purchase. Any negative impact on the markets or individual securities, for example when selling large equity positions, is avoided.

"Institutional investors increasingly recognise the value of well-planned, professional transition management when portfolios are to be strategically realigned. As a leading fund servicing company with associated portfolio management, we are ideally positioned to offer this service to our clients, thereby saving them unnecessary costs, risks and any loss of return in the course of restructuring," explains Victor Bemmann, Head of Portfolio Management at Universal-Investment. Over the past twelve months, demand for these services has almost doubled, especially for sophisticated transitions with great complexity.

Bernd Obergfell

Head of Communications

+49 69 71043-575


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