"Increased demand for active asset management awaits in the future"
In a significant milestone, Union Investment, a leading asset management firm, has surpassed the half a trillion euros threshold in assets under management (AUM), reaching a record high of 511.2 billion euros by mid-2025. This impressive growth of 24.3 billion euros compared to the previous year underscores the strategic emphasis on expanding actively managed assets.
Hans Joachim Reinke, CEO of Union Investment, reaffirms the company's commitment to active asset management as the core strategy for the future. Despite the success of passive Exchange Traded Funds (ETFs) in the industry, Union Investment plans to remain a fundamental active asset manager and does not have plans to offer passive ETFs.
Addressing the Challenges Ahead
Union Investment has faced various challenges, including the recovery of investor confidence after setbacks like the "UniImmo: Wohnen ZBI" real estate fund debacle. However, Reinke is working diligently to attract new investor capital to such funds.
The firm is also looking to address the needs of Generation Z and young customers, recognising the importance of catering to the next generation of investors.
Pension Solutions and Efficiency Programs
The pension savings deposit, as proposed by the traffic light government, is seen as a potential solution for the expanded early-start pension. Union Investment supports the idea of an early-start pension but believes it is insufficient and advocates for voluntary additional payments and transferability to reformed pension products.
In addition, Union Investment has implemented an efficiency program called "Fit for Future" that created room for 150 million euros in investments for the future.
Mixed Funds and Digital Transformation
Mixed funds have reported net inflows after a difficult period, indicating a positive trend in investor confidence. Union Investment believes that asset management will continue to be a hybrid model of digital media and personal contact.
The company is also investigating the use of new technologies for integrated, data-based market activities. Social networks are being considered for communication purposes, reflecting the growing importance of digital platforms in the financial industry.
Contributing to Infrastructure and Demographic Challenges
Union Investment believes that asset management can contribute to addressing infrastructure and demographic challenges. The introduction of ELTIF (long-term investment funds) and pension products are seen as potential solutions for these challenges.
The financial industry's role in Europe's sovereignty is a central question for Union Investment. The firm is actively exploring ways to address these issues and contribute to a strong and sovereign European Union.
In summary, Union Investment under Reinke's leadership is doubling down on its active management expertise and scaling AUM, without a significant shift towards passive or active ETF product launches at this time. The company's focus remains on active management, investor confidence recovery, and digital transformation, while maintaining a commitment to addressing infrastructure and demographic challenges.
References:
- Union Investment Annual Report 2025
- Reinke: Union Investment will double down on active management
- Union Investment focuses on active asset management amid passive ETF growth
Union Investment, while maintaining its active management as a core strategy, is not planning to offer passive Exchange-Traded Funds (ETFs), choosing to stay committed to fundamental active asset management. Recognizing the future of asset management as a hybrid model of digital media and personal contact, Union Investment is exploring the use of new technologies for integrated, data-based market activities to cater to the growing importance of digital platforms in the financial industry.
