Union Investment increased its AUM to an all-time record in 2016. Over the course of the year the volume invested rose by €31.5bn to reach €292.3bn. In a challenging market environment Union Investment generated net new business amounting to €23.2bn. This represents the biggest increase to date, with the exception of the record year in 2015 (€26.2bn). Profit before taxes came to €468m.
“2016 was not an easy year, but for Union Investment it was once again a very successful one”, said Hans Joachim Reinke, chief executive officer of Union Investment.
Currently €168.6bn of the AUM is from institutional clients. With 74 new clients joining over the year, the retail business also saw the second highest positive flows since the financial crisis.
“Although security is still the top priority for many investors, the demand for returns is growing and therefore so too is the willingness to climb higher on the risk ladder,” explained Reinke.
In the latest market outlook, Jens Wilhelm, member of the board of managing directors said, “2017 will be marked by a reversal of the political, economic, inflationary and central bank trends seen in the past few years.”
Wilhelm commented, “The global economic upturn will continue as growth in key regions becomes more synchronised. We expect growth of between 3-3.5% over 2017. Inflation will return to normality – as growth factors are not yet dynamic enough to trigger a sustained rise in inflation, inflation in the Eurozone should hover around 1.3%. Also emergency monetary policy should come to an end.”
“We are seeing an improvement but not an explosion of growth. It is therefore still too early to say farewell to low interest rates”, he further added.