From our experience of working with a large number of clients operating in Germany, we are seeing an increasing number question the merit of maintaining certain business functions “in-house”. As competition between management houses strengthens, pressure on costs throughout the investment industry is increasing as businesses attempt to reduce fixed overheads and increase efficiency.
This search for efficiency and overall business agility opens up new areas of the asset management value chain to the asset servicing industry – initially those areas lower down in the chain such as custody, but increasingly higher added-value activities such as those in the middle-office. We are also seeing a trend in Germany towards outsourcing not simply “tasks”, but entire areas of competence. We have even seen front-office only asset management businesses launched which are entirely based on an outsourcing model.
By tracking German market trends, CACEIS has designed an appropriate strategic response in terms of both product offering and geographic coverage. Our policy of making the Group’s entire product offering available at each of our locations also helps us support clients’ development strategies at every stage. Having a network of local entities is another key part of our strategic response because it ensures we operate in close proximity to our clients, and that we fully understand the legal, cultural and financial specificities of the market in which they do business.
A case in point, German Real Estate managers have recently gained access to CACEIS’s Fund Administration services, following client demand. The German real estate administration offering relies on the expertise of our real estate centres of excellence throughout the CACEIS group, and has proven a very successful addition to the service offering in Germany. Several large clients have so far engaged CACEIS as fund administrator, of which one is Credit Suisse Real Estate Investment Management Germany.
In terms of Real Estate depositary services CACEIS already has a strong reputation on the market and is ranked as Germany’s largest thirdparty depositary. The bank started providing depositary services for the majority of Savills Investment Management’s German funds in spring 2016 and many existing clients, such as Catella Real Estate AG, have strengthened their partnership with CACEIS in Germany by awarding new real estate fund mandates.
In addition to open-end real estate funds, CACEIS has also been awarded mandates for closed-end funds from existing and new clients in 2016. Furthermore, demonstrating its ability to cover all asset types, MST AIMF Eins Fondsmanager mandated CACEIS to provide depositary services for the very first ship funds complying withAIFMD in Germany.
In terms of Custody services, CACEIS has won a number of new clients including most recently the entire securities asset range of Frankfurt Trust Invest Luxembourg AG. A top tier German public utility company has also mandated CACEIS to provide a large range of services such as listed derivatives clearing, forex, securities lending and other dealing room services.
Finally, for broker-dealer clients in Germany, CACEIS’s market leading Cash Equity Clearing services have attracted new clients such as Mainfirst Bank. Mainfirst is using CACEIS settlement services for their institutional trading activities and now has access to a broad range of European markets.
All these successes confirm the attractiveness of CACEIS's range of services in the German market