The investment industry is changing fundamentally: while geopolitical tensions and regulatory requirements are increasing, many asset managers are struggling with stagnating inflows and rising operating costs. As an independent fund service platform in the German-speaking region, Universal Investment sees these developments as confirmation of its strategic direction. „After a record year in 2021, inflows have stabilised at a lower level,“ says Mathias Heiß, CEO of the German platform, and a member of the board of the German Investment Funds Association (BVI) since 2024.

Fund service platforms in asset management are becoming increasingly important, which, according to Heiß, is not without consequences: „The platform market is definitely consolidating, but it is not a segment that can be easily delineated“. Universal is well positioned in this environment with over 1 trillion euros in assets under management. This includes 698 billion euros in institutional products, 302 billion euros in insourcing and direct investments, and a further 175 billion euros in retail products.

Market concentration always harbours risks. Diversity for customers is required, and openness, not just size, Heiß emphasises. As a master KVG with an international structure (Frankfurt, Luxembourg, Dublin) Universal serves over 5,000 fund and investment structures for institutional investors, fund initiators and asset managers.

While many market participants moan about new regulatory requirements, Heiß sees this as an opportunity: „In a way, we benefit from more regulation – because customers say: „We don't want to do this ourselves anymore, please do it“.“ Especially in an environment of growing complexity, reliable partners with operational expertise are needed. At the same time, he clarifies: „Of course, we are not happy about every new regulation. But we have the capacity and expertise to implement them.“

Universal is also meeting the growing requirements in the area of sustainable finance by setting up its own ESG Office and specifically strengthening its sustainability organisation. „Obtaining data is a real challenge, but we took the lead here at an early stage", he says.

Technological development is a key issue for Heiß. He sees enormous potential in the area of fund administration in particular, especially for securities funds: „When we talk about innovation and artificial intelligence, we are mainly talking about data today – for example from PDFs, from different sources, with heterogeneous formats. Preparing this data in a way that makes it machine-readable and systemically embeddable is a real added value.“

The aim is to create end-to-end data flows – from the source to reporting. „ESG reporting benefits enormously from this. Artificial intelligence helps us to automatically extract complex information and convert it into structured data records.“ Manual activities, such as logging into portals or sending internal emails, are also to be replaced by automated processes. „It's not just efficiency, it's quality,“ says Heiß.

„Automation needs a critical mass – but also the right people, the right software and the courage to invest,“ he emphasises. This willingness characterises Universal Investment: „We want to be a leader, not just in terms of technology, but also in terms of thinking.“

Heiß takes a nuanced view of the geopolitical reordering of recent years: „Europe is gaining in strategic importance. As a European company, this is more of an opportunity for us.", he says. Universal Investment is one of the few German players with a truly international presence – in Luxembourg and Ireland, and with client relationships in Asia and North America. „We are increasingly accompanying our clients into international markets. This is a competitive advantage that many German providers do not have.“

Despite the expansion, the domestic market remains at the centre of the strategy. „Our German customers are and will remain the core of our business. This is where our origins lie, this is where our strength lies.“

Universal Investment was founded in 1968 by a group of banks. With around 1,700 employees and over 55 years of market experience, the company offers services in the areas of administration, structuring and risk management.

„We are pioneers in the investment industry and the market leader for master KVG and private label funds,“ says Heiß. The group's goal is clearly defined: „We want to grow together with our clients – and become the leading fund platform in Europe.“ Not through size alone, but through partnership and innovative strength.