Asset management and investment
Strategy and targets
Core activities Robeco Group, Schretlen Co, Alex, International Private Banking Trust
Rabobank's asset management activities achieved
their ambitions and targets for 2005 by a wide
margin, with net profit increasing by 26% to
EUR 174 million. The significant improvement in
the investment climate for equities translated into
a strong rise in share prices, yielding excellent
investment results. The relative performance of the
Robeco funds against the benchmark also contri
buted to the increase. According to Morningstar
rating agency, the overall performance of the
funds amounted to 3.19 stars, against a target of 3.
The inflow of new assets was disappointing,
however. Effectenbank Stroeve was sold in the
year under review. As a result of the merger of
Interpolis with Achmea, the assets managed by
Interpolis are no longer part of the assets managed
and held in custody by Rabobank Group.
Market and clients
37 Rabobank Group Annual Report 2005
Both in the Netherlands and in the Eurozone, there was a spectacular
recovery of the stock exchanges, with share price gains of more than
20%. Contributing factors included a weaker US dollar, higher corporate
profits than expected and a lower long-term interest rate. The United
States stock exchanges lagged behind and showed only a moderate
increase in 2005, after several years of growth. The absolute champion
in 2005 was the Japanese stock exchange, which grew by 40%. Investor
confidence in Japan likewise grew, economic recovery continued and
the competitive position improved due to the weaker Yen. Bond and
real estate products also showed a positive result for the year on balance.
In the year under review, Effectenbank Stroeve was sold to Kredietbank
Luxembourgeoise because there was too much overlap in its activities
with those of the local Rabobanks and other Group entities.
Market approach
Rabobank Group focuses on both private and institutional investors.
Private individuals with an invested capital or income of EUR 80,000 or
more are served by Rabobank Private Banking. Alex accommodates
active, independent investors, who, alternatively, may use the Rabo site
or order line. Robeco Direct enables investments to be made in funds
and structured products as well as in individual shares. Schretlen Co
accommodates the top segment (EUR 500,000 and more), while Robeco
focuses on large institutional investors. Smaller institutions, such as
housing corporations, religious societies, foundations and associations
Offer high-quality services to all types of
Broaden the range of innovative products
investment clients.
and services.
Strengthen Rabobank Group's position in the
60% of the investment funds of Robeco
market for wealthy individuals.
Group exceed the benchmark
Consolidate the position and selective enlarge
Annual growth in operating profit before
ment of the distribution network abroad.
taxation of 15%
