Outlook for asset management and investment
Operating expenses down 6%
Robeco's operating expenses were lower as a result of the cost-cutting programme. Sarasin's
expenses showed a limited increase, despite cost reductions, due to the expansion of its
operations. In 2009, total operating expenses for the asset management operations showed
a 6% decrease to EUR 950 (1,013) million. Staff costs dropped by 1% to EUR 553 (559) million
mainly as a result of the cost reduction programme at Robeco. This programme resulted in a
3% decrease in staffing levels, to 3,501 (3,620) FTEs. This also caused other administrative
expenses to decline by 18% to EUR 288 (352) million. Due in part to higher amortisation of
software and intangible assets, depreciation and amortisation charges were 7% higher, at
EUR 109(102) million.
Value adjustments at EUR 4 million
In 2008, Sarasin had to recognise value adjustments on financial institutions as a result of the
turbulence in the financial markets. There were no additional value adjustments in 2009.
Robeco reported value adjustments in 2009 in the sum of some millions of euros by virtue
of the mortgage portfolio. The total amount of value adjustments for asset management
operations was EUR 4 (42) million.
We anticipate a positive cash flow and further growth of assets under management for 2010.
Cost saving initiatives have resulted in a lower cost level, which should benefit the profitability
of our asset management and investment operations. Robeco will review its strategy under its
largely new management, as well as intensifying its collaboration with other group entities.
Robeco aims to further integrate responsible investment into its services. For all mainstream
investments, factors relating to the environment, society and sound corporate governance
will be part and parcel of the analysis and investment process. In addition, an exclusion policy
will be implemented and Robeco's own business operations will be made even more socially
responsible. Sarasin intends to continue its international strategy for growth in its markets for
high net-worth and institutional clients. The expansion of its operations outside its Swiss
heartlands should result in a greater share from international operations in its income.
Schretlen Co and Rabobank Private Banking are investigating opportunities for jointly
expanding Rabobank Group's position in the market for high net-worth clients.
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Asset management and investment
