2019 Annual Report and CSR Report
Total Page：16
File Type：pdf, Size：1020Kb
Union Asset Management Holding AG 2019 annual report Group management report 2019 annual report and CSR report 1 Union Asset Management Holding AG 2019 annual report Contents Foreword 5 Consolidated financial statements (IFRS) of Union Asset Management 45 Holding AG for the financial year from 1 January to 31 December 2019 Report of the Supervisory Board 6 Consolidated income statement 45 Statement of comprehensive income 45 Group management report of Union Asset Management Holding AG 8 for the financial year from 1 January to 31 December 2019 Consolidated statement of financial position 46 A Basic information on the group 10 Statement of changes in equity 47 B Economic report 13 Statement of cash flows 48 General economic and industry conditions 13 Notes to the consolidated financial statements 50 Specific business performance 17 Business environment 23 Basis of preparation 50 Research and development 27 [1] Principles of group accounting 50 Dependent company report 29 [2] Accounting policies 50 Position of the company 29 [3] Consolidated group 53 [4] Principles of consolidation 54 C Corporate governance declaration 37 [5] Estimates 54 [6] Financial instruments 55 D Forecast, report on risks and opportunities 38 [7] Fair value measurement of financial instruments 59 [8] Currency translation 59 Report on opportunities 38 [9] Cash reserve 59 Report on risks 38 [10] Loans and advances to banks and customers 59 Forecast 42 [11] Allowances for losses on loans and receivables 60 [12] Investment securities 60 E Non-financial statement 43 [13] Shares in companies accounted for using the equity method 60 [14] Property, plant and equipment 60 [15] Intangible assets 61 [16] Right of use assets 61 [17] Assets and liabilities held for sale 61 2 Union Asset Management Holding AG 2019 annual report [18] Liabilities to banks and customers 62 [45] Income tax assets 78 [19] Asset and liability derivatives 62 [46] Other assets 79 [20] Provisions for employee benefits 62 [47] Right of use assets 79 [21] Other provisions 63 [48] Assets held for sale 79 [22] Lease liabilities 63 [49] Liabilities to banks 80 [23] Income 63 [50] Liabilities to customers 80 [24] Income taxes 64 [51] Liability derivatives 80 [25] Contingent liabilities 65 [52] Provisions 80 [53] Income tax liabilities 84 Consolidated income statement disclosures 66 [54] Other liabilities 85 [26] Net interest income 66 [55] Lease liabilities 85 [27] Allowances for losses on loans and receivables 66 [56] Liabilities held for sale 85 [28] Net fee and commission income 67 [57] Equity 85 [29] Net income from investment securities 68 [30] Other net remeasurement income on financial instruments 68 Financial instruments disclosures 88 [31] Net income from companies accounted for using the equity method 69 [58] Categories of financial instruments 88 [32] Administrative expenses 69 [59] Exposure to credit risk 89 [33] Other operating result 69 [60] Gross carrying amounts and allowances for losses 91 [34] Income taxes 70 [61] Items of income, expense, gains and losses 93 [62] Fair values 93 Statement of comprehensive income disclosures 71 [63] Fair value hierarchy 95 [35] Amounts reclassified to profit or loss 71 [64] Contractual maturity analysis 98 [36] Income taxes relating to components of other comprehensive income 72 [65] Foreign currency volumes 101 Consolidated statement of financial position disclosures 73 Other disclosures 103 [37] Cash reserve 73 [66] Equity management 103 [38] Loans and advances to banks 73 [67] Disclosures of revenue from contracts with customers 103 [39] Loans and advances to customers 73 [68] Disclosure of interests in other entities 104 [40] Asset derivatives 73 [69] List of shareholdings 116 [41] Investment securities 73 [70] Contingent liabilities 117 [42] Shares in companies accounted for using the equity method 75 [71] Other commitments 117 [43] Property, plant and equipment 76 [72] Leasing 117 [44] Intangible assets 77 [73] Financial guarantees 118 3 Union Asset Management Holding AG 2019 annual report [74] Number of employees 119 2019 corporate social responsibility report 133 [75] Auditor fees 119 [76] Events after the end of the reporting period 119 Sustainability in the Union Investment Group 134 [77] Related party disclosures 120 [78] Board of Managing Directors of Union Asset Management Holding AG 123 About this report 137 [79] Supervisory Board of Union Asset Management Holding AG 123 [80] Supervisory mandates held by members of the Management approaches – Board of Managing Directors and employees 124 GRI standards 103-1 + 103-2 + 103-3 140 [81] Miscellaneous other disclosures 125 Union Investment sustainability programme 145 Independent auditor’s report 126 Union Investment real estate portfolio 150 Shareholders and executive bodies of Union Asset Management Holding AG 129 GRI content index 174 Glossary 131 Imprint 191 4 Union Asset Management Holding AG 2019 annual report Foreword Foreword Dear readers and shareholders, Our institutional clients were particularly interested in open- The coronavirus pandemic is bringing sweeping changes to ended real-estate funds, equities, corporate bonds and our country. We are facing significant economic and social securitisations. Union Investment’s net sales with institutional change. Nevertheless, we at Union Investment are optimistic clients grew considerably to EUR 11.3 billion. At EUR 207.8 about the future. We are confident that we can make our billion, the volume of institutional funds managed exceeded contribution for the welfare of the Genossenschaftliche EUR 200 billion for the first time. In addition, there was FinanzGruppe. Although we and our clients are often occupied continued significant interest in sustainable investments. with other questions right now, the fundamental situation The volume across all client groups increased from EUR 41.4 has not changed: In this low-interest environment, clients billion to EUR 53.1 billion. continue to seek high-yield alternative investments in investment funds more than ever. Looking ahead again, our successful active management, our many years of expertise in sustainable investment and our On this basis, the last decade and the last year in particular true proximity to clients put us in an excellent position in the have been good for us. The good market performance and cooperative funds business. We have already proven that we the strength of our fund management helped our funds’ can develop solutions to complex challenges together with one-year performance across all asset classes to 12.8 %. our partners. The last ten years were the decade of coopera- tives and the cooperative funds business. Why not the next? Moreover, 2019 was one of the best years for sales in the company’s history, with net new business of EUR 19.4 billion. As a result of the sales and the strong fund performance, Union Investment’s assets under management rose by 13.9 % Happy reading to a new high of EUR 368.2 billion. Earnings before taxes grew to a new record of EUR 650 million, including EUR 73 million from the sale of the Polish subsidiary TFI. In retail client business, net inflows amounted to EUR 8.1 billion. The volume increased to EUR 160.4 million. Investor interest was mainly directed at open-ended real-estate funds Hans Joachim Reinke with net inflows of EUR 3.5 billion as well as mixed and Chief Executive Officer equity funds. An ever larger portion of new business is coming Union Asset Management Holding AG from instalment-based saving. The number of traditional fund savings plans grew by 404,000 to nearly 2.7 million contracts. At the end of the year, Union Investment managed a total of 5.2 million savings contracts in the form of traditional fund savings plans, employer-funded capital formation schemes and Riester savings plans with a volume of over EUR 45 billion. 5 Union Asset Management Holding AG 2019 annual report Report of the Supervisory Board Report of the Supervisory Board resolutions of the Supervisory Board. The Executive Committee his dedicated and valuable support and wish Thorsten met three times in 2019. The Supervisory Board was regularly Bartsch and David Milleker all the best and every success reported to on its activities. in their roles as members of the Supervisory Board and the Executive Committee, respectively. The former CEO of DZ BANK AG, Wolfgang Kirsch, who has been Chairman of the Supervisory Board and the Executive Cooperation with the Board Committee since 7 November 2007, left the Supervisory Board of Managing Directors and the Executive Committee on 31 December 2018. With effect from 1 January 2019, Dr Cornelius Riese, Co-CEO of The Board of Managing Directors provided the Supervisory DZ BANK AG, was elected as new Chairman of the Supervisory Board with regular, timely and comprehensive written and Board and the Executive Committee. Dr Cornelius Riese was oral reports on the position and performance of the company previously already a member of the Supervisory Board and and the group and on general business developments. The the Executive Committee. Board of Managing Directors also regularly informed the Supervisory Board about ongoing operations and future At the request of the Board of Managing Directors, the business policy, including the corporate strategy and orga- Frankfurt am Main Local Court appointed Ulrike Brouzi, nisational structures of the Union Investment Group. member of the Board of Managing Directors of DZ BANK AG, as a member of the Supervisory Board of Union Asset Manage- The Supervisory Board reviewed the risk position of the ment Holding AG with effect from 8 April 2019 until the end company and the group and examined other material risks of the next Annual General Meeting. The next Annual General specific to fund management business. Meeting took place on 10 May 2019 and elected Ulrike Brouzi as a member of the Supervisory Board. With effect Supervisory Board meetings from 1 August 2019, the Supervisory Board then also elected Ulrike Brouzi as a member of the Executive Committee of The Supervisory Board held four meetings and one telephone Union Asset Management Holding AG’s Supervisory Board.