I think generally
speaking asset
management will
remain relatively
attractive J
Robeco
Roderick Munsters,
CEO Robeco
Roderick Munsters
As an asset manager, Robeco makes most of its money by
charging a fee to manage the return and risk of its clients'
investment portfolios. This means that much of Robeco's
activities are off-balance sheet. However, Robeco also
operates Robeco Direct, a Netherlands-based retail bank.
It's in this role, as a provider of loans and mortgages held
on the bank's balance sheet and retaining credit risk, that
Robeco's responsibilities to Basel III are most relevant.
CEO Robeco, Roderick Munsters: "Although we do have a
number of elements on our corporate balance sheet that
are relevant to Basel III, the greatest impact will be to our
banking business. However, because we run a relatively
simple bank, our assessment is that Basel III will have a
fairly limited impact on us." One option that may become
more attractive for both Robeco and Rabobank under
the proposed Basel III regulations would involve Robeco
investing more of its assets in Rabobank assets, such as
Rabobank-issued bonds. Munsters: "This would be a way
for us to support the funding of Rabobank which, due to
Basel III, is on the agenda of Rabobank. It would enable
us to shorten our balance sheet, while providing asset
support to Rabobank, which may appeal to both parties
and our clients." Looking across the sector, Munsters
doesn't foresee asset managers being too heavily impacted
by Basel III. "I think generally speaking asset management
- from a capital consumption perspective - will remain
relatively attractive, and I don't expect many changes.
However, asset managers are not really used to looking
into capital issues, so this might be an element we have to
take into account and pay more attention to in the future."
ISSUE 25 OCTOBI RI WORLD
