Investment proces & philosophy

Portfolio management: a highly skilled and systematic process

The successful management of any asset class requires experts who are masters of their trade. The portfolio management team of Union Investment TFI S.A. consists of 16 members, including portfolio managers, analysts and assistants. They share a common belief in the necessity of following a structured, fundamental investment process as the underlying core component of superior performance.

Team approach for deeper insights

We use a clearly defined investment process. This process ensures transparency and a systematic approach in our asset management and in our business relationships with investors and partners. We pursue a team approach to ensure that we take full advantage of the entire range of expertise available to us. Our portfolio managers consult each other regularly and collaborate on investment strategies which are then individually implemented in the portfolios.

Sound investment philosophy

Successful asset management must rely on fundamental principles. We believe that our success derives from the common understanding of fundamental principles of our investment philosophy:

  • Union Investment is primarily an active asset manager. Even if some benchmark funds are strongly index-oriented, active positions are taken to add value to our portfolios.
  • Union Investment is also research-oriented asset manager. We use third party research delivered by major investment banks and specialized brokerage houses. Furthermore, we have an ongoing dialogue with top ranked investment analysts. At the same time, we strongly believe in the value of our own fundamental research and prognosis.
  • Union Investment is strongly focused on achieving superior performance. Using ex-ante and ex-post risk analyses as well as portfolio optimization tools, we link return and risk.
  • International expertise in various asset classes is the basis of our success.
  • Union Investment concentrates on the medium and long-term investment horizon. All our dispositions are embedded in our long-term assessments of the markets.
  • Union Investment follows a team approach where every portfolio manager contributes his special expertise to the benefit of all.
  • We apply a compensation system that rewards achievement, direct responsibility and the fulfilment of given targets. Excellent achievements in forecasting and fund performance are rewarded according to our remuneration system.