Sarasin: increase in assets from international clients
Growth in assets managed thanks to positive investment results
Mainly thanks to its positive investment results, assets managed by Robeco grew by 3% in
2007 to EUR 145.8 (141.7) billion. From early 2007, the consolidation of the Swiss SAM Group
subsidiary also contributed to the increase in assets managed. A number of traditional
Robeco investment funds, especially bond funds, showed an outflow of assets. This cash flow
was compensated by an inflow of funds at both the American subsidiary Harbor Capital
Advisors and the SAM Group. Through its Japanese branch, Robeco succeeded in attracting
a considerable amount of new assets for the SAM Group. The further weakening of the
US dollar in 2007 slowed the growth of assets managed, resulting in a negative impact of
approximately EUR 4 billion.
Outperformance for the majority of equity investments; handsome returns on alternatives2
Robeco can be satisfied with the performance of its portfolio managers in 2007. Many equity
investments outperformed their benchmarks, and alternatives realised handsome absolute
returns. Bond funds performed less strongly, however. Of the equity investments, 80% 3
realised an outperformance in 2007, compared with only 21% of fixed-interest investments.
On a three-year horizon, these figures are 95% and 57%, respectively. Flagship fund Robeco
beat the benchmark by 1.9%, Robeco Emerging Markets Equities by 3.0% and the
outperformance for Robeco Hollands Bezit was 1.3%. Highlights abroad were the SAM
Sustainable Water Fund, with an outperformance of 9.0%, and Harbor International Fund,
with 10.5%. The latter has USD 27.2 billion in assets under management. In 2007, Harbor
Capital Advisors came first in two out of the three categories of the 'Fund Managers of the
year' election, which is organised annually by Morningstar USA.
Outperformance was scarcer among fixed-interest funds, with Flagship funds Rorento and
Robeco Lux-o-rente underperforming by 0.9% and 2.1%, respectively. The return on the
Harbor Bond Fund exceeded the benchmark by 2.2%. Robeco Balanced Mix, the largest
domestic mix fund, realised an absolute return of 3.0%.
Alternatives performed well in 2007. Transtrend's Diversified Trend Program - Enhanced
Risk, for instance, realised a handsome absolute return of 22.4%. Robeco Multi Market Bonds
likewise showed fine returns in 2007. These were significantly higher than the risk-free return.
Founded in 1841, Bank Sarasin is one of Switzerland's leading private banking institutions.
Its core activities comprise investment advice and asset management services to high
net-worth private clients and institutional clients, as well as an investment fund management.
Its complementary services extend to corporate finance and financial analysis. The Sarasin
Group has around 1,200 employees and operates internationally in eight countries across
Europe, Asia and the Middle East. Its shares are listed on the Swiss stock exchange, SWX.
International growth strategy shows positive effects
In 2007, Bank Sarasin successfully attracted new assets, largely from private banking clients.
Mainly due to this inflow of new funds, assets managed grew by EUR 4.6 billion to EUR 50.2
(45.6) billion. A growing proportion of assets managed originated from clients outside
Switzerland. 2007 was the fifth consecutive year for Bank Sarasin to be elected one of the
best private banking providers in German-speaking countries, with the commendation of
'summa cum laude'. The bank won this distinction in the 'Elite Report 2008' published by the
German financial daily paper Handelsblatt. Bank Sarasin-Alpen, Dubai, has earned - in its
second of only two years of operations in the Middle East - the accolade of the 'Best Private
Bank of Year-2007' in the prestigious Banker Middle East Awards.
Bank Sarasin's renewed focus on its core competencies resulted in the sale in early 2007 of
its brokerage business, to NZB Neue Zürcher Bank, and its Luxembourg activities, to Crédit
Agricole Group. In addition, Bank Sarasin and AIG Private Bank signed an agreement to form
2 Returns are before management fees, with a new bank dedicated to serve private clients with assets worth up to approximately EUR
the exception of alternatives. 300,000. Bank Sarasin will have a 57.5% interest in this new bank. Together, Sarasin and AIG
3 Percentages based on weighted assets. Private Bank will be managing approximately EUR 5 billion on behalf of over 235,000 clients.
59
Report of the Executive Board
