Asset management services to clients of every kind
In the Netherlands, Rabobank Group offers, through several channels, a broad range of investment
products and services to both private and institutional investors. Robeco offers many investment products
and Robeco Direct, through its Younique concept, offers tailored asset advice and management to
private individuals. Rabo Direct Beleggen accommodates active, independent investors. Rabobank Private
Banking focuses on private individuals with assets of EUR 80,000 or higher. Schretlen Co accommodates
high net-worth private individuals and medium-sized institutional investors with assets of EUR 500,000
or more.The large institutional investors can turn to Robeco Institutional Asset Management and to
Sarasin. Internationally, Rabobank Group likewise provides for many investors' needs through Robeco
and Sarasin.
Robeco's services expanded
In 2008, Robeco expanded its fiduciary-management services to pension funds further.The basis of
Robeco's fiduciary-management proposition is Corestone, an existing multi-manager selection specialist
in Switzerland that operates independently. This enables Robeco to offer an independent selection
of the best asset managers to pension funds and to provide a link between their assets and their
pension liabilities.
Robeco has drawn up a separate'Greater China'strategy for China, Hong Kong, Taiwan and Singapore,
positioning Hong Kong as a gateway to Asia, where the Asia-Pacific oriented equity funds are managed.
In 2008, it opened a branch office in Singapore.The inflow of assets into Canara Robeco Asset Management,
the joint venture with the Indian Canara Bank that was launched in 2007, gained momentum.
Some bright spots in a negative investment year for Robeco clients
In 2008, the value of all equity investments plunged by double-digit percentages. There was some comfort
in the fact that the 54%1Kldrop in Robeco-managed equity portfolios was less than the benchmark.
With a return of-39.3%, the Robeco flagship fund lagged behind the benchmark return of-37.2%.
Investments in Emerging Markets lost more than 50% of their value. Robeco Emerging Markets Equities
dropped by 52.1%, slightly more than the benchmark. Key funds that outperformed the benchmark
included Robeco Hollands Bezit, which dropped by 47.5% versus 50.3% for the AEX index including
dividends, and Robeco Chinese Equities, at -46.5% versus -49.1%. With its flagship funds Harbor
International and Harbor Capital Appreciation, Robeco's subsidiary Harbor Capital Advisors outperformed
the benchmark by 2.1% and 2.8%, respectively. Early 2008 the managers of the Harbor International
Fund earned one of the Morningstar's US Fund Manager of the Year Awards. Also the asset managers
of the Harbor Bond Fund earned this award. Although a large majority of fixed-income funds realised
positive returns, only 31% outperformed the benchmark. Rorento's return was -0.6%, against a benchmark
of 4.9%. The biggest redeeming factor was Robeco Lux-o-rente, whose absolute return of 17.2%
represented a 6.2% outperformance of the benchmark.
In alternatives, Sage International achieved a -21.4% absolute return in US dollar terms. Transtrend
delivered very strong results, with a 29.4% absolute return in US dollar terms for the Diversified Trend
Program - Enhanced Risk USD. Robeco Multi Market Bonds likewise showed positive double-digit
returns for 2008.
New growth initiatives at Sarasin
In the year under review, Sarasin expanded its presence in its Swiss home market as well as in other
European countries and the Middle East. Together, Sarasin and AIG Private Bank founded a new bank,
branded 'bank zweiplus', for private clients with assets worth up to approximately EUR 300,000.
Sarasin holds a 57.5% interest in this new bank. At year-end,'bank zweiplus' managed assets worth
around EUR 3.9 billion on behalf of more then 250,000 clients.
Sarasin strengthened its position in Germany by obtaining a full banking licence and opening a new
German head office in Frankfurt. It also entered the Spanish market providing its private banking
services out of Madrid and La Coruna and opened a branch in Ireland through its London subsidiary.
In the Middle East, Sarasin obtained licences for banking operations in both Qatar and Bahrain, and a
licence for advisory services in Oman.
10) Percentages based on weighted assets; with the exception of alternatives, performance figures include asset management fees.
41
Report of the Executive Board
