Increased Demand for Active Asset Management Ahead
In the dynamic world of asset management, Union Investment, a major player in the German market, continues to hold its cards close to its chest regarding its future plans. However, recent developments suggest that the company is poised for growth and innovation.
The proposed pension savings deposit by the traffic light government is seen as a potential solution for extensive pension expansion. This initiative, if implemented, could provide a significant boost to the industry, including Union Investment.
In a positive turn of events, mixed funds have reported net inflows after a challenging period, indicating a growing confidence in the market.
Union Investment's stance on passive Exchange Traded Funds (ETFs) is not definitive, but the company prefers active asset management, particularly in times of crises and for capturing large structural changes. This approach underscores Union Investment's commitment to active management and its ability to adapt to market conditions.
In a move to enhance efficiency, Union Investment implemented the Fit for Future programme, creating a financial headroom of 150 million euros.
Despite the lack of specific 2025 data, Union Investment's general trend up to 2024 has been one of growth in assets under management (AUM), expansion of pension product offerings, and recruitment aligned with business growth.
However, it's important to note that Union Coop, a distinct entity focused on retail, reported significant growth in H1 2025. While this is unrelated to Union Investment, it provides some context to the broader economic climate in Germany.
As the debate on affordable energy, security, industrial location, infrastructure modernization, and demographics continues, Union Investment, like the rest of the fund industry, is considering its contribution to these issues. The introduction of ELTIFs and pension products could be a part of this solution.
The industry is also engaged in discussions about FiDA, cautioning against well-intentioned but potentially harmful decisions. The planned legal framework for access to financial data (FiDA) has been criticized for potentially exposing customer data to American Big Techs.
Union Investment's CEO, Hans Joachim Reinke, has reaffirmed the company's commitment to active asset management, stating that Union Investment will not offer passive ETFs. The company is also reaching out to Generation Z with its new offers.
As we await Union Investment's official 2025 reports and press releases, it's clear that the company is well-positioned to navigate the challenges and opportunities that lie ahead in the asset management industry.
Union Investment's strategy in the realm of personal-finance, such as the pension savings deposit initiative, presents an opportunity for growth in the industry. As confirmed by the CEO, Hans Joachim Reinke, the company remains committed to actively managing their business, regardless of the approach taken towards Exchange Traded Funds (ETFs).
