RBE Robeco

RNS Number:6780P
Robeco NV
8 January 2002
                                                     Rotterdam, 8 January 2002


Provisional figures 

-   Assets under management: EUR 105.1 billion (+15%) 
-   Assets under management in investment funds: EUR 53.6 billion (+26%)        
-   Institutional assets under management: EUR 51.5 billion (+5%) 
-   Gross cash flow: EUR 4.6 billion


                       ROBECO: ACQUISITION DRIVES GROWTH 


The provisional figure for the total assets under management by Robeco at the
end of 2001 is EUR 105.1 billion, a 14.9% year-on-year increase. The growth
is primarily due to Robeco's acquisition of Harbor Capital Investments of
Toledo (US), which has EUR 17 billion in assets under management. The
divestment of the stake in Smith Graham (US) reduced Robeco's assets under
management by approximately EUR 1 billion.


On balance 2001 was a poor investment year for Robeco. Equity investments
declined EUR 5.5 billion. However, assets under management for fixed-income
products increased EUR 2.8 billion. Cash inflow amounted to approximately EUR
4.6 billion. Due to two significant one-off withdrawals, net cash inflow
amounted to EUR 1.2 billion, while interest and dividend distributions
amounted to approximately EUR 0.8 billion.


Equity investments 

2001 was the second consecutive year in which stock prices declined around
the world, which has not happened since 1973 and 1974. Almost all stock
markets finished the year in the red, which made it the worst year for equity
investors since 1974. Almost all Robeco's equity funds closed the year in
negative territory. 2001 was also difficult in terms of relative performance,
i.e. compared to the benchmark. Most funds thus realized a small
underperformance.
            

Assets under management by our flagship fund Robeco declined 12.4% to EUR
8.75 billion. The negative investment result of -17.5% was offset by a strong
cash inflow of EUR 617 billion. Over a three and a five-year period, the
Robeco fund ranks first on the IRIS list of globally investing funds.
Together with some other Robeco funds, it has received a five-star rating,
the highest possible from Morningstar.


Funds in the ICT sector were particularly hit by large price declines over
the year, but they have rallied remarkably well in the past three months.
Among equity funds, the country funds Robeco ZelfSelect Mexico, Robeco
ZelfSelect Australie en Robeco ZelfSelect Maleisie realized positive results,
with increases of 28.8%, 7.8% and 5.3% respectively.

Fixed-income investments 

Capital market rates alternately increased and declined in 2001. It was
notable that the 10-year rate in the economically weak eurozone was slightly
higher at the end of 2001 than at the start of the year, while yields of
shorter-term bonds had declined: this development did not make the investment
climate any easier for bond investors. Nevertheless, bond funds outperformed
their benchmarks. Robeco Euro Obligaties Dividend was the most successful
fixed-income fund with a positive investment result of 9.4%. Rorento,
Robeco's internationally investing bond fund, realized a price result of 3%.
All in all 2001 was clearly a better year for bond investors than for equity
investors. Deposits at Roparco increased approximately 10% to EUR 7.5 billion.


Institutional clients
 
Institutional clients entrusted a record amount of more than EUR 3 billion in
new mandates. The launch of three new products (the Private Equity, Pan-European
Market Neutral and Institutional Global Equity funds) led to cash flow of 
approximately EUR 100 million. The Market Neutral Fund is Robeco's first 
European institutional hedge fund. It can be sold in both the US and Europe, and
has a current volume of EUR 35 million.

In cooperation with Rabobank, we have tendered for and won a number of
central bank mandates, helped also by Rabobank's AAA status.

We gained more than 30 new institutional clients during the year. Client
demand generally focused on specialized mandates. There was also increased 
interest from fund-of-funds managers looking to include Robeco funds in their 
portfolios.

 
Furthermore, over 20 new pension funds have supplemented or changed their
existing pension schemes by including Robeco's Flexioen product, a defined
contribution pension plan.

Robeco Direct 

As of 7 January 2002, Robeco Advies will be known as Robeco Direct. 

The name change anticipates further internationalization, and better reflects 
our philosophy of direct and easy access to Robeco's global expertise. Robeco
Direct's policy is to further improve its service by concentrating on the
individual needs and objectives of its clients.


Robeco Direct achieved total net cash flow of almost EUR 1 billion last year.
Demand for new products was limited due to the difficult market environment.
Six new products were introduced for private investors: two guarantee funds,
Robeco ZelfSelect Medical BioTech, Robeco Private Equity and two additional
mix funds. Together these funds generated EUR 150 million in cash inflow.


The total number of investment accounts (Robeco Direct and Rabobank) remained
more or less constant in 2001. The total number of investors using Robeco
Direct's online investment facility increased 25% to over 70,000 in 2001.

Improvements made to the Robeco Direct website last year included additions
to the trading facility, the introduction of new calculation modules, and
optimizing the provision of the latest information via e-mail.  In line with
the new name, the site also has a new address: www.robecodirect.nl.


YoungDynamic 

YoungDynamic Company, which is wholly owned by Robeco, has been marketing
Robeco YoungDynamic since April 2001. YoungDynamic is about more than
investing: it is a platform for young people who want to learn everything
there is to know about making, managing and spending money. The fund itself
is managed by Robeco. Despite the unfavorable investment climate, the number
of shareholders in Robeco YoungDynamic increased 10% to 45,000 in 2001.
Performance was -11.1%, slightly better than its benchmark.

 
Robeco in Europe (Robeco Fund Distribution) 

Last year, we took decisive action regarding our strategy for international 
investment fund sales.

By taking a 10% interest in its asset management subsidiary Aureo Gestioni,
we have intensified our cooperation with ICCREA, the Italian cooperative
banking organization, which has more than 3,000 branch offices. Our policy is
aimed at an integrated approach to the Italian market. Furthermore, Robeco
funds are beginning to be included in private discretionary portfolios in
Italy. The Robeco funds established in Luxembourg will be launched on a broad
front in Italy via the affiliated banks in the first quarter of 2002.

In Germany, we have established a new office in Frankfurt from which
marketing activities will be coordinated. A large number of distribution 
agreements have now been signed. The Robeco fund (Robeco N.V.) will be a major 
spearhead in Germany, as well as in the other European countries.
It is already listed in Amsterdam, Brussels, Frankfurt, London, Luxembourg,
Paris and Vienna, and expects to receive UCITS status (a European passport) in 
mid-2002, which will allow it to be marketed as an investment fund throughout 
the EU.

The considerably expanded activities at the Swiss offices have resulted in
distribution agreements being concluded with approximately 50 banks.

A clear distinction has been made in the approach used for direct and
indirect/institutional marketing in the current activities in France, where 
total net cash flow of more than EUR 1 billion was realized. 

In response to requests from a number of banks in Spain, we have begun
supporting third-party distribution on a limited scale.

Finally, we have received approval in Belgium to service the local retail
market from our Brussels offices. This will begin in the first quarter of
2002.


WPG 

Robeco's subsidiary Weiss, Peck & Greer (WPG) in New York was fortunately not
affected by the terror attacks of 11 September 2001. With regard to
investments, it was a difficult year for traditional as well as alternative
products. However, despite negative investment results, assets under
management increased to USD 20.2 billion due to positive cash flow of USD 1.4
billion.


RAI 

Robeco Alternative Investments (RAI), a new business unit which focuses on
the development and sales of alternative investment products, took off
energetically. RAI is active in the field of private equity, hedge funds and
structured products. In 2001 RAI launched private equity funds for the
institutional and the private market, two collateralized bond obligations and
two hedge fund products with a guaranteed principal. In just over a year
since it was established, assets under management through RAI amount to no
less than EUR 1.5 billion.


Outlook 

The growth rate of the global economy is expected to pick up in 2002. The
inflation outlook is very benign this year. Against this background, there
would seem to be good prospects for fixed-income investments. 2002 is
expected to be a good year for equities as well. As always, the upside move
will not be in a straight line, and significant corrections should be
expected on the way. Cyclically sensitive stocks will be the first to
benefit. These are mainly to be found in the materials, consumer
discretionary, financials and technology sectors.


On balance, Euroland bond yields rose slightly in 2001, despite weakening
growth and falling inflation. The inflation outlook for 2002 is extremely
favorable. Inflation is already below 2% in the larger countries, and
falling. Under these conditions, bond yields - now approximately 5% in the
Netherlands - can decline again in 2002 to a level of 4% in 2002, or perhaps
2003. The expectation for the second half of the decade is however that bond
yields will enter a longer-term uptrend, influenced by the return of
wage-cost inflation.


The medium-term outlook for financial markets continues to be positive, due
to the underlying upward trend in the global economy and the low level of
inflation.


For more information please contact: 
Robeco, Corporate Communications department 
Ronald Florisson 
+31 - 10 -224 28 10 
+31 - 653 - 831 586 (mobile)

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