Asset management and investment
Strategy and targets
Core activities Robeco Group, Schretlen Co, Effectenbank Stroeve, Alex, International Private Banking &Trust
Review of activities
Market and clients
38 Rabobank Group Annual Report 2004
Core activities
For Rabobank Group's asset management activities, 2004 was a good
year despite the modest price gains on the stock exchanges. Assets
managed and held in custody were 6% higher at EUR 195 billion and
operating profit before taxation was 15% higher at EUR 197 million.
Alex received a great deal of interest in 2004. The business was voted
the best service provider in online investments and on top of that was
awarded two prestigious prizes. The performance of the Robeco invest
ment funds was mixed. Its fixed-interest funds showed an excellent
performance compared with competitor funds. The main equity fund,
Robeco, was unable to beat the benchmark. In mid-2004, a collabora
tive venture in securities transactions processing was started with the
Belgian KBC bank.
There were no spectacular price gains in 2004, with prices on the stock
exchanges rising slightly. The stock exchange climate was affected by a
lower US dollar exchange rate and an increase in the price of oil. Since
Dutch industry is highly sensitive to the rate of the dollar, the Dutch
stock exchange index lagged behind other international indexes. 2004
was a good year for investors in bonds and real estate. The declining
interest rate in the capital markets had a positive effect on the prices of
bonds and real estate products. Interest in investing recovered slightly
during the past year. However, private investors are still cautious because
of the significant price falls in the recent past. Guarantee products were
developed especially for these clients, enabling them to enjoy positive
returns, while the risk of losses is limited or even eliminated. Many private
clients purchased these products in the year under review.
Increase in assets managed and held in custody
Assets managed and held in custody by Rabobank Group increased
by EUR 11 billion in 2004 to EUR 195 (184) billion. Of this total, EUR 55
(52) billion was from the Group's own funds. Of the assets managed
on behalf of clients, more than EUR 20 (19) billion relates to assets
managed by Interpolis for third party pension funds and EUR 120 (113)
billion relates to client assets managed and held in custody by the
local Rabobanks and Rabobank Nederland's other subsidiaries such as
Robeco Group. The increase in assets managed on behalf of clients was
the result of EUR 8 billion in investment returns plus EUR 3 billion from
the inflow of new assets, less EUR 3 billion due to the weaker dollar,
with the remainder relating to other movements, such as payments of
dividends and interest.
Assets managed and held in custody for clients
in EUR billions
144
140
136
132
128
124
120
31
December
2003
Investment Gross Exchange Interest,
returns cash flow gains dividends
and losses and other
31
December
2004
Slight decrease in the number of orders
In the year under review, the number of orders handled by Rabobank
Group declined by 2% to 5.6 (5.7) million. A clear shift was seen in 2004
away from securities and towards in-house funds. At the local banks,
Pursue high-quality services to all types of invest
60% of investment funds to exceed
ment clients.
the benchmark
Strengthen Rabobank Group's position in the market
annual growth in operating profit
for wealthy individuals via the subsidiaries.
before taxation of 15%
Abroad, consolidation of the position and selective
broaden the range of innovative
enlargement of the distribution network.
products and services
