Robeco Group
38 Rabobank Group Annual Report 2005
Core activities: asset management and investment
that need specialist service can turn to Schretlen Co's institutions desk.
Rabobank Group is active abroad as well. Besides offering Robeco pro
ducts through third parties, Robeco also has a number of subsidiaries in
the United States. The Swiss Bank Sarasin Cie, in which Rabobank
holds a 28% interest, serves international private banking clients.
Assets managed and held in custody
The assets managed and held in custody by Rabobank Group were
EUR 224 (223) billion at 31 December 2005, EUR 68 (83) billion of which
comes from the bank's own investment portfolio and EUR 156 (140)
billion is managed on behalf of clients. The decline in the Group's own
investment portfolio is largely due to the deconsolidation of Interpolis.
Assets managed by Effectenbank Stroeve and Interpolis, and not placed
with Robeco, are no longer included in client assets. The increase in
assets managed was the result of EUR 18 billion in investment returns,
more than EUR 3 billion due to the stronger US dollar, nearly EUR 5 billion
from the inflow of new assets and an outflow of around EUR 8 billion
from the sale of Effectenbank Stroeve and the merger of Interpolis with
Achmea. The remainder relates to other movements, including payments
of dividends and interest. The inflow of new assets in the United States
was relatively limited and was due in particular to the departure of an
investment team. Performance in Europe was much better. In the fourth
quarter, Robeco was awarded a new EUR 1 billion mandate by the
French civil-service pension fund.
The greater part, 46%, of assets managed for clients has been invested
in shares, 35% in fixed-interest funds, 11% in alternative products such
as private equity, hedge funds and structured products and 8% in other
funds.
Significant increase in the number of orders in second half of 2005
In the Netherlands, the number of orders handled by Rabobank Group
for securities and in-house funds rose by 9% in 2005 to 6.1 (5.6) million.
The increase is partly due to the significant stock exchange recovery in
the second half of the year. In the first half of 2005, there was a 10%
decline, whereas the number of orders handled rose by 32% in the
second half of the year. The biggest increase was in orders for securities,
which grew 15%. The number of orders handled for in-house funds
remained stable. Although there are signs that investor confidence is
returning, it is as yet too early to speak of a lasting recovery.
In 2005, assets managed and held in custody by Robeco Group grew by
almost 18% to EUR 131.6 (111.8) billion. Institutional clients account for
around half of these assets.
Harbor Capital Advisors (United States) achieved remarkably good
results in 2005, with both an excellent performance and a large inflow
of new assets. Robeco Investment Management in New York was unable
to follow suit and consequently, Robeco Group's total inflow of new
assets was slightly disappointing. The net inflow of new assets in 2005
was EUR 1.7 billion.
Over the past years, Robeco Group has built an excellent reputation for
offering structured products, hedge funds and private equity funds to
private individuals. There is great interest in this type of product, with
strong competition as a result. Nevertheless, Robeco Group successfully
placed a few new products, with assets invested growing by 21% to
EUR 17 billion.
Changes in assets managed and held in custody for clients
in EUR billion
166
160
154
148
142
136
130
31
December
2004
Investment
returns
Gross Exchange Sale of Interest, 31
i cash flow gains and Stroeve and dividends December
losses Interpolis and other 2005
