VA-7
Investors' bank Alex
Schretlen Co
Financial results
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39 Rabobank Group Annual Report 2005
Core activities: asset management and investment
More capital through third-party distribution
Securing capital through third parties was successful in 2005. The Robeco
funds benefited from the fact that more and more financial institutions
in the Netherlands are offering third-party funds. Robeco Group also
sells its funds abroad. In countries such as Belgium, Spain and Germany,
assets managed no less than doubled and showed similar strong growth
in Switzerland. Fixed-interest funds particularly were in great demand
abroad. In 2005, Robeco Group opened an office in Japan in order to
include the Japanese market in its services.
Excellent performance of investment funds
Robeco Group's funds had an excellent year. After a number of less
prosperous years, flagship funds Robeco and Rolinco handsomely out
performed the benchmark. Over a three-year period, 65% of the assets
managed by Robeco Group outperformed the benchmark. This was
well above the target of 60%.
The Morningstar rating agency compares funds in terms of returns, risks
and costs over a 36-month period and awards stars. The better the
result the more stars are awarded to a fund. Four or five stars mean that
a fund is among the 32.5% of best performing funds, with three stars
being the median. In 2005, the Robeco Group funds achieved a higher
rating than the median: an average of 3.19 stars, against 2.96 in 2004.
The handsome increase was mainly due to the equity funds. Their average
rating increased from 2.75 in 2004 to 3.07 stars in 2005. Fixed-interest
funds, which again performed well, rose from 3.48 to 3.52 stars. Robeco
Divirente and Robeco Euro Bonds Dividend, which were awarded the
maximum of 5 stars, excelled among the fixed-interest funds.
Alex had a very good year and realised excellent benefits from the stock
exchange recovery. The number of orders handled rose by 15% to 2.2
(1.9) million. Assets held in custody grew strongly, by 43% to EUR 3.3
(2.3) billion, far outpacing the AEX.
At 31 December 2005, the total number of clients was 83,700, a rise of
5%. In 2005, Alex succeeded in retaining its leading position in the
market for private individuals in both the stock and the options exchange.
Indeed, its market share on the Amsterdam options exchange grew
from 21.1% in 2004 to 23.6% in 2005.
In the year under review, Alex introduced Alex Assist, a digital investment
advisor for private individuals with a capital upwards of EUR 25,000.
Alex is alone in offering individual digital portfolio advice on more than
500 Dutch and European shares funds. This innovation won Alex the ICT
Innovation Award 2005. In 2005, Alex was included in the list of 250
Superbrands of the Netherlands.
Of all people purchasing private banking products in the Netherlands,
Schretlen Co's clients were the ones most satisfied with the service.
Second came the private banking service of the local Rabobanks. This is
the outcome of a survey held by Incompany magazine among clients of
business service providers. Schretlen Co's top position was mainly due
to such aspects as expertise, contacts' reliability and accuracy, which
were given high scores.
Assets managed by Schretlen Co rose by almost EUR 1 billion to
EUR 6.5 billion. In addition, its number of clients grew again.
Higher income at unchanged operating expenses
Net profit grew by 26% to EUR 174 (138) million in 2005. The greatly
improved result was the product of 10% growth in income and stable
expenses. Higher fees and commission revenues, which rose 17% to
EUR 600 (512) million, were responsible for the entire income growth
of EUR 718 (653) million. The improved investment climate in the
Netherlands, especially in the second half of the year, generated higher
management and custody fees. Placing fees were also higher, thanks to
the successful placing of several new products.
Assets managed and held in custody for Rabobank Group
clients at year-end 2005 by investment type
Shares 46%
Fixed-interest securities 35%
t
Alternatives 11%
Other 8%
