Market and clients
Customer services through different channels
Robeco: slightly positive cash flow despite asset outflow in favour of deposits
Founded in Rotterdam in 1929, Robeco provides investment products and services to
approximately 700 institutional clients and some 1.5 million private individuals around the
world. Services to private clients are provided through banks and other distribution partners
as well as direct channels. Robeco's product range includes not only equity and fixed-interest
investments, money market and real estate funds, but also alternative investments including
private equity, hedge funds and structured products. In addition to its home markets in the
Netherlands and the United States, Robeco has branches in Bahrain, Belgium, China, France,
Germany, Hong Kong, India, Japan, Luxembourg, Poland, Spain, Switzerland and the United
Kingdom. At year-end 2007, assets managed amounted to EUR 146 billion. Worldwide,
Robeco has around 1,800 employees.
Despite the increased turbulence in the financial markets, many stock exchanges succeeded
in ending the year in black figures. On 31 December 2007, the AEX index was 4% higher than
at the beginning of the year. In Europe, the German DAX 30 index closed 22% higher than in
2006 and in the UK, the FTSE 100 index was 4% higher than a year ago. The S&P 500 index
likewise was 4% higher, although in euros it was lower due to the 11% devaluation of the
US dollar. In Japan, the NIKKEI 225 index fell by 11%. Since returns on a large number of
equity investments were moderately positive, Rabobank Group saw a rise in its assets
managed and held in custody for clients.
The increased uncertainty in the stock exchanges caused private clients to seek greater
security from other products. Helped by the rising short-term interest rate, the interest paid
on time deposits was higher as well. As a result, many clients decided to exchange traditional
equity funds and bond funds for deposits. This outflow of assets caused a slowdown in the
growth of Rabobank Group's total cash flow.
Rabobank offers a broad range of investment products and services to Dutch private and
institutional investors via different channels. For a many years, Robeco has offered
investment opportunities in a large number of investment products. Rabo Direct Beleggen
accommodates active, independent investors. With Robeco's Younique concept, Robeco
Direct offers tailored asset advice and management to private individuals with invested
assets of EUR 25,000 or higher. Rabobank Private Banking focuses on private individuals with
assets of EUR 80,000 or higher. Schretlen Co accommodates high net-worth private
individuals with assets of EUR 500,000 or more and medium-sized institutional investors.
The large Dutch institutional investors can turn to Robeco Institutional Asset Management.
Internationally, Rabobank Group likewise provides for many investors' needs through
Robeco and Sarasin.
Investment expertise increased, distribution capacity expanded
Robeco increased its investment expertise significantly in 2007 with the acquisition of
Sustainable Asset Management Group (SAM Group) and the expansion of its interest in
Transtrend. At the beginning of the financial year, Robeco acquired a 64% interest in SAM
Group, the Swiss sustainable asset manager, thereby expanding its expertise in sustainable
investment. In addition, Robeco acquired the remaining shares in the Dutch Transtrend
enterprise, in which it initially held a 49% minority interest. Transtrend is a Rotterdam-based
managed futures trader.
In Belgium, Robeco intends to focus exclusively on funds distribution and therefore
decided to sell Robeco Bank Belgium to Kaupthing Bank. Robeco aims for modest expansion
of its activities outside Europe and the United States. In India, Robeco and Canara Bank,
one of India's largest banks, set up a joint venture named Canara Robeco Asset Management.
Together, Robeco and Canara Bank aim to expand Canara Bank's asset management
activities. Robeco developed a separate strategy for Greater China, i.e. China, Hong Kong,
Taiwan and Singapore, with Hong Kong being positioned as the gate to Asia. Robeco
established a regional office in Hong Kong in 2007 and is setting up a branch in Shanghai.
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Rabobank Group Annual Report 2007
