Universal Investment Luxembourg has had a : Jeremy Albrecht. For Albrecht, who has spent the majority of his career in the fund industry in Luxembourg, the new position is a “great challenge.” “I wanted to take on a bigger role where I would be running the business locally in Luxembourg, having an impact on the strategy,” he told Paperjam during an interview in mid-April. Before joining Universal Investment, Albrecht worked at Caceis and RBC Investor & Treasury Services. “With my background in sales and relationship [management], I would then support the growth of the company in Luxembourg.”

Founded in Germany in 1968, Universal was established in Luxembourg in 2000, with this year marking the firm’s 25th anniversary in the grand duchy.  And “it has been a success story,” said Albrecht. Present in both Luxembourg City’s Gare district and Grevenmacher on the German-Luxembourg border, Universal’s fund services platform administers €407bn in assets. The firm counts 500 employees in the grand duchy, and a total of more than 1,800 staff members worldwide.

“Largest opportunity” in Luxembourg

Universal Investment has three regulated investment companies in Germany, Ireland and Luxembourg. What makes the grand duchy so special?

“Luxembourg has been identified by Universal as one of the jurisdictions where we believe we have the largest opportunity when it comes to growth,” replied Albrecht. “Luxembourg is well-equipped and has a very good reputation when it comes to cross-border distribution,” making it a good place for asset managers to launch products and distribute them more broadly. “We also see that there is a tendency for the asset management industry to outsource and, there, we are certainly well-equipped to support their business, making sure that they can focus on their primary objective--delivering alpha--when we can support them in the front, middle and back [office].”

With the Alternative Investment Fund Managers Directive (AIFMD) and the law on reserved alternative investment funds (Raifs), “Luxembourg has built the right toolbox and ecosystem for the success of alternative investments,” he added. “We see a big growth of private capital services in Luxembourg.”

“We have embraced that growth [in alternative investments], and this is a key focus for us,” said Albrecht. “Universal in Luxembourg is covering the entire value chain.” And with the rise of “retailisation” in the alternative investment fund industry, this trend presents an opportunity to capitalise on.

Two main objectives

Albrecht’s first main objective is to “strengthen the growth trajectory of the group” and promote Luxembourg amongst an increasingly international client base; the second focusses on supporting “a more integrated solution” between the firm’s different activities. “Today, we have a management company [Universal Investment Luxembourg] and a central administration [UI EFA],” he explained. in 2022, and its services include fund administration and regulatory and compliance services. “These are very complementary businesses, and one of my objectives is to make them more integrated in Luxembourg.”

What we need to identify is the concrete applications of AI, making sure they are meaningful to our clients and to us

Jeremy Albrecht, country head and CEO for Luxembourg UIL and UI EFA

The product offering is “very flexible”--whilst the services can be offered separately, they can also be done together. “And the idea is to better integrate the two in Luxembourg,” he said, adding that the firm wants to evolve with client requirements and take a “client-centric approach.”

Opportunities to seize

Looking ahead, the adoption of artificial intelligence is a key opportunity, said Albrecht. The internet in 2000 was a “revolution,” and “I anticipate that AI will have at least the same impact, but at a faster pace. Now what we need to identify is the concrete applications of AI, making sure they are meaningful to our clients and to us.” Examples include the use of AI to support back-office processes or to present data in a more “meaningful” manner.

Another opportunity is the “consolidation in the market,” he continued. “We also see that it’s more and more difficult for an asset manager to have its own manco. Before, the entry point was maybe €1bn; today, it’s maybe around €5bn or €6bn. But we see that trend even increasing,” meaning that firms will look more and more at outsourcing solutions. “It costs to have the infrastructure, to have the people and the regulation is evolving.”

The acquisition and retention of talent--a challenge often cited by the financial industry in Luxembourg--can also been seen as an opportunity, said Albrecht. Companies need to ensure that they’re “appealing” to employees” and a place where people are “proud” to work. “People are key to our strategy in Luxembourg,” he argued, “making sure that we are well-equipped to comply with the regulation, to support our clients, to create solutions and to remain relevant to the Luxembourg ecosystem.”

Universal in Luxembourg marks its 25th anniversary this year. Say you had a crystal ball and could look 25 years into the future. What would the industry look like?

“Twenty-five years is a bit far away,” he replied, “but I would see a very transformed industry,” thanks to the use of AI and other technology. “The industry will certainly not look like it looks today. I think what is important is that we have been able to adapt for the past 25 years, so we just need to make sure that we remain flexible and continue adapting to the evolving situation, making sure that we stay relevant and create solutions for the market.”

“As an example, I’m quite sure that the way we are doing controls, the way we interact with the regulator will be very, very different. There will be a new job that will emerge from that. There will be new opportunities that will emerge from that,” Albrecht concluded. “What is important is to make sure that we stay open and that we make decisions in order to evolve with that fast-evolving environment.”