1135 0414 jaaroverzicht 2013 retail

2013

Net cash flow + 24 Billion 2010 - 2013 Total AuM >

200 EBIT

119

11

Billion

12%

billion

Current share of the Dutch pensions market

mio

221

active dialogue with 221 companies

NL

1260

Retail campaign resulted in thousands new clients

FTE

Performance Insights Quantitative models reached AuM by client domicile

415

19

EUR Awards

voted at 2916 shareholder meetings

Female

12% NL

2916

20

222.000 Direct Retail Clients AuM by asset mix

845

Male

Billion

2

Performance Insights

Contents Interview

Financials

Robeco’s CEO explains the strategy.

Thoughts and talks

Introductory Note P. 4

A good team: Strength through partnership The acquisition by ORIX was the most important event of 2013 for Robeco. Makoto Inoue, co-CEO of ORIX, and Hester Borrie, Member of Robeco’s Management Board, look back on a harmonious acquisition process resulting in advantages for all concerned.

P. 6

Robeco anticipates events, rather than reacting to them.

P. 30

Prize winners of 2013 Interview with Sander Bus & Jack Neele.

P. 24

P. 16

Breakthrough Hong Kong

P. 34

Changing pensions environment offers opportunities P. 8

It is Robeco’s ambition to grow into a major pensions player.

Both in the Netherlands and further afield.

P. 22

2013

Interview

Dick Verbeek, Chairman of the Supervisory Board of Robeco Groep N.V., reflects on the year past and the one ahead

Looking back A landmark year on our for Robeco highlights P. 10 factor investing

P. 12

What made us proud

P. 28

Jay Feeney, co-CEO and CIO of Robeco Boston Partners in Boston, USA, is pleased to state that: “2013 was an exceptional year from many different perspectives.“

P. 14

P. 21

Any financial analysis is incomplete if it ignores financially material ESG criteria Leni Boeren, Member of Robeco’s Management Board, and Michael Baldinger, CEO RobecoSAM, elaborate on Robeco’s belief in Sustainability Investing (SI) and on the achievements made in 2013.

Successful transition to new service Most clients appreciated the changes

P. 18

It is more than just manager selection P. 26

Fiduciary asset management plays a key role in Robeco’s range of services.

And Corestone fulfils an important function within the department charged with this task (Investment Solutions & Research).

P. 32

3

4

Performance Insights

Introductory Note 2013 was a memorable year for Robeco. Total assets under management broke through the EUR 200 billion threshold and our active investment style paid off. Many of our funds beat their benchmarks and some were singled out for an award. In order to continue to perform at the highest level, we continuously optimize departments and divisions, and intensify cooperation throughout the organisation. Last year Robeco took an important step forward by launching a number of unique investment concepts. This included successfully further expanding our quant factor investing range to clients.

In order to continue to perform at the highest level, we continuously optimize departments and divisions, and intensify cooperation throughout the organisation

We booked successes in the Dutch pension markets, winning PPI mandates. We expect to be able to take further steps in fiduciary management. In the retail market, Robeco renewed its online platform, which was introduced smoothly.

Without doubt the most significant event in 2013 was, of course, the acquisition of Robeco by Japanese

2013

2013 was a memorable year for Robeco

Total AuM >

200

billion

financial services provider, ORIX.

presence. Despite our cultural

the confidence they have placed in us,

85 years after it was founded by a

differences, we speak the same

as they are what makes our company

group of Rotterdam port barons, and

financial language. As they say in

what it is and the reason we exist.

twelve years after it was taken over

Japan: An apprentice near a temple

by Rabobank, Robeco now has the

will recite the scriptures untaught.

Thanks!

support of a new enterprising parent

Finally, we would like to express our

Roderick Munsters,

company. We have every confidence

sincere thanks to our clients and our

Leni Boeren, Hester Borrie, Hans

in this new partnership. ORIX and

employees. We are delighted with the

Rademaker and Jurgen Stegmann

Robeco complement each other well

loyalty they demonstrated during the

in terms of products and geographical

takeover process. We are honored by

opportunity to move forward with the

5

6

Performance Insights

Interview with Roderick Munsters

Roderick Munsters, CEO Robeco

In 2013, Robeco became an autonomous part of the ORIX Corporation, a leading Japanese financial services enterprise. Within ORIX, Robeco operates as the platform for growth in asset management. Building on its 85 year heritage and its 2010 - 2014 strategy, Robeco is set to focus on accelerated growth. Robeco’s CEO Roderick Munsters explains the strategy.

2013

We’re well positioned to accelerate growth First of all, looking back, what did 2013 hold for Robeco?

our clients at the heart of what we do.

of our AuM and clients originate from

pension solutions and sustainability

And if you do, you’ll be able to deliver

the US and we see strong growth

integration solutions. The

To begin with, we successfully

client-centric solutions instead of just

potential in this region by leveraging

Netherlands will remain a key market

completed the acquisition by ORIX.

products.

Robeco Investment Management’s

and our activities in Rotterdam will

value equity capability, by fostering

remain unchanged.

Despite a year of ownership change, we managed to attract a net inflow

Therefore our people will always

growth at Harbor Capital Advisors and

of EUR 1.5 billion and assets under

be our main asset, all of them –

by strengthening the distribution of

management (AuM) grew to EUR 205

analysts and portfolio managers but

Robeco products.

billion at the end of 2013.

also employees from sales, service

What does the near future hold in terms of targets?

We expect to exceed an AuM level

centers, back offices, IT, etc. Their

As for Asia and the Middle East, we

of EUR 300 billion in 2018 from

We’ve also been successful in

commitment, their talent allows

will explore growth opportunities in

organic growth but we will also

realizing attractive investment

us to serve clients well, to beat the

the pension and asset management

look for acquisition opportunities.

returns and outperformance for our

benchmark and to chart new territory.

markets. We will pursue further

Obviously, any acquisition will have to

clients. In 2013, 75% of our products

That’s why we really focused on

expansion by leveraging ORIX’

fit strategically and must match our

outperformed their benchmark (over

teamwork, on innovation and on

strong presence in the region and

corporate philosophy.

a three-year period, gross of fees).

sharing accomplishments.

by opening a Singapore office to meet the needs of sovereign wealth

What are you most proud of?

What are the main drivers of Robeco’s success?

What will Robeco’s 2014 - 2018 strategy look like?

funds and global key accounts. Our

Last year, we demonstrated the

investment capabilities will continue

strength and resilience of our

We are utilizing the lessons from the

We expect substantial growth in

to focus on Asia Pacific Equities, but

business. In times of turmoil, we

recent past to accelerate growth and

three regions – the US, Europe and

we also aim to expand into Asia fixed

retained confidence from our

perform even better. We do so by

Asia – where Robeco and ORIX have a

income.

clients, we smoothly transferred

connecting the dots and by putting

strong presence. Currently, about half

205

billion

Robeco’s banking activities in the We will step up our European sales

Netherlands to Rabobank and

by adding resources to existing sales

succeeded in welcoming our new

offices and setting up a sales-oriented

main shareholder. What’s more, our

office in London to focus on key

focus on teamwork is bearing fruit.

account management, consultant

We have been able to stay on course,

relations and the UK institutional

attract new AuM and achieve a record

market. In Europe, we aim to realize

performance. We’re well positioned

growth in our quant capabilities,

to accelerate growth.

7

8

Performance Insights

A good team: Strength through partnership The acquisition by ORIX was the most important event of 2013 for Robeco.

Makoto Inoue, co-CEO of ORIX, and Hester Borrie, Member of Robeco’s Management Board, look back on a harmonious acquisition process resulting in advantages for all concerned.

How was the takeover process?

I

noue: “The bidding was rather tough, but we were confident that Robeco’s stakeholders fully understood

our buying strategy. After the signing on 19 February 2013 in Tokyo, the acquisition process went smoothly and was completed in just four and a half months. Many market

We are convinced that Robeco’s dynamic global presence will be a valuable asset to ORIX | Makoto Inoue

players were amazed that a deal of this size could be completed in such a short time. I would like to convey my thanks to the stakeholders for their help in making this possible.”

B

Why Robeco?

I

noue: “We sought a stable business that is not too capital intensive. Asset management fitted in with our

orrie: “Of course, as shareholder and seller, Rabobank,

management strategy and our aim to expand our business

played a leading role during the process. But there

through diversification. Robeco’s performance so far has

was always plenty of consultation throughout. Rabobank

already proved that we made the right decision.”

took any considerations we had very seriously. The fact that Rabobank still holds a ten percent stake in Robeco is also

What can ORIX offer Robeco?

an indication of what a sound parent company it was. We

B I

were happy to see that so many parties were interested in Robeco. It was certainly not a distressed sale. Robeco is an Makoto Inoue,

attractive and profitable company – not something that

co-CEO of ORIX

you see on the market very often.”

orrie: “Their network, experience, entrepreneurship in Asia and the Middle East and expertise in the field of

private equity.” noue: “ORIX has been in the financial services business for around fifty years. We offer a range of financial

2013

ORIX wanted to buy Robeco and keep the company intact both physically and in terms of its character.

Of course, this appealed to us | Hester Borrie services to our customers, which we refer to as ‘custom

and written communication are equally important, while

fit answers’. Robeco can benefit from our experience and

in Japan written communication is believed to carry more

network. We have been active in the Asian region for forty

weight.”

years and understand how business here works. We can share our know-how with Robeco on the unique way in

B

which some countries do business.”

more subtle way. We can learn a lot from this subtlety.”

How is the cooperation between the two companies progressing?

What ambitions does ORIX have for Robeco?

B

orrie: “We Dutch can be very direct, while the Japanese make it clear how they feel about something in a rather

orrie: “Very well. Once the deal was closed, we

I

started to really get to know each other. We assessed

Robeco will strengthen its position in the field of asset

eachother’s experience, expertise and networks to identify

noue: “We are convinced that Robeco’s dynamic global presence will be a valuable asset to ORIX and that

management.”

potential opportunities. Meanwhile, we continued to do our work, in the way that our customers expect. They want

How will ORIX and Robeco achieve these goals?

our portfolio managers to focus on their interests and not

I

be distracted by other things.”

I

noue: “Robeco has a strong presence in Europe and the US, but a relatively small one in Asia and the Middle East.

noue: “Our priority has been to learn the nature of

While ORIX boasts an extensive network in these regions.

Robeco’s business and its management style. The depth

This offers a wide range of collaborative possibilities. In fact,

of our knowledge is constantly improving. Likewise, I also

various committees have already been set up to promote

think that it is important for Robeco to learn about ORIX’

information sharing and to look for opportunities. I have

history and culture.”

been delighted to learn that some projects are already under way, and that more are expected to follow. Market

But there are significant cultural differences, aren’t there?

consolidation is inevitable in the asset management

I

noue: “The most important element in doing business

in addition to organic growth, can be used as an effective

anywhere in the world is to be open and transparent

means to accomplish our mutual goals.”

industry, so there may be acquisition opportunities which,

Robeco and ORIX. However, in working with Robeco, I have

B

noticed one major difference. In the Netherlands verbal

ORIX as a company too.”

when it comes to communication – a philosophy shared by

orrie: “We are now part of a fantastic partnership that

Hester Borrie,

offers Robeco extra growth opportunities and enriches

Member of Robeco’s Management Board | Sales & Marketing

9

10

Performance Insights

After five years of running the Summer University, we opted for a new style

Making things simple requires in-depth knowledge

IT CHANGE TEAM 3 - IT Simplicity program. The main objectives of the simplicity program were to increase efficiency and reduce complexity.

The latter objective is also a precondition to innovation. Making things simple is probably one of the hardest things to achieve as it really

Conny Wegerif

requires an in-depth knowledge of both business and IT. I am proud

GLOBAL BRANDING - After five years of running the Summer University, we opted

that we were able to implement an

for a new style to present the Robeco brand to our domestic and international

architecture at a competitive cost

institutional and wholesale clients. This resulted in the creation of the Robeco World Investment Forum. We wanted to increase engagement with our top-tier

that will enable Robeco to grow William Riemslag

further in the near future.

clients and so we devised a more interactive setting. Thanks to the participation of top-level speakers we succeeded in showing our clients that we are a thought leader. I was proud of the huge success and the great impact made by the event,

GROUP PRODUCT MANAGEMENT -

organized with an impressive team.

Since 1 January 2014, payments of distribution fees are no longer allowed in the Netherlands. Robeco has supported

EQUITY AND FIXED INCOME

this change and is happy to present an

TRADING - The traders execute a

even better, real net performance of our

tremendous amount of orders in

funds to our retail clients. I am proud of

a lot of different asset classes. The

the role that Robeco has played in this

value of these orders is north of

major change in the industry. Robeco

a couple of hundred billion euros

did not just implement it internally;

per year. I am proud of the traders

we have closely engaged with our

and the fact that operational

distributors over a long period of time,

incidents are at a consistently low

understanding their challenges related to this market, and truly supporting

level. In 2013 we had an overall outperformance in Equity Trading for the fifth consecutive year!

Edwin Scheffers

them in efficiently changing their processes and operations.

Martine Snoek

2013

IT CHANGE - We aim to make IT better. We were also challenged to achieve cost reduction targets. So we are proud of the fact that we are reaching the end of our four-year roadmap in which we reduced our costs by more than 40%. During this time, we have replaced most of the core systems at Robeco. This has resulted in the introduction of state-of-the-art new systems.

This has brought great benefits, making Robeco far more competitive, thanks to the significant lower cost base for IT and Operations.

Arjen Jongma

LOOKING BACK ON OUR HIGHLIGHTS HR ADVISORY - I’m truly proud of the effort, passion and dedication that colleagues put into their work.

Robeco employees are very enthusiastic, and are proud of the organization they work for. This results in many opportunities for self-improvement, and it invokes great individual responsibility, accountability and increases in performance. This is despite the fact that these are insecure times. Proud employees feel committed to the company. This is the best advertisement for Robeco!

I’m truly proud of the effort, passion and dedication that colleagues put into their work Marieke Geleijns

11

12

Performance Insights

Interview with Dick Verbeek

Dick Verbeek, Chairman of the Supervisory Board of Robeco Groep N.V.

2013 marked the beginning of a new era for Robeco.

Dick Verbeek, Chairman of the Supervisory Board of Robeco Groep N.V., reflects on the year past and the one ahead.

2013

Client relationships must be based on trust Dick Verbeek feels privileged to be chairing Robeco’s robust and diversified

Risk-control governance is exercised by line management together with the

Supervisory Board and serving the interests of Robeco Groep N.V. and its

departments Group Risk Management, Group Compliance and Group Internal

stakeholders. “In addition to acting in a supervisory and advisory capacity, I’d

Audit. The Audit & Risk Committee supervises the financial reporting process,

like to see our role as one of inspiring the Management Board in their search for

the control environment, the internal control systems, risk management and the

growth while maintaining compliance with all applicable regulations.” Within

internal audit.

a highly regulated environment, the space to manoeuver is limited. Therefore, entrepreneurship is key, he says.

Transparency about risk comes naturally to us and is embedded company-wide.

Verbeek: “Risk management – and complying with regulation – is part of our

Last year produced valuable insights. “Finding ourselves in the middle of the

day-to-day work. While posing challenges across multiple jurisdictions, it also

shareholder-selection process forced us to reflect on our position, objectives,

opens up possibilities for those who promote innovation and entrepreneurship.”

ratios and competitive edge. Amid the hassle, I believe Robeco gained in

Opportunities abound, he says. As global aging continues, consumers are

efficiency and focus. Coming from a situation with multiple offerings, Robeco

seeking alternatives to savings accounts, and the emerging markets are

learned how best to utilize and extend its capabilities – quant, sustainability

prospering. “The Supervisory Board will see to it that good governance is

investing, credit bonds – to name a few. And of course we are extremely happy

maintained as Robeco continues to build on its legacy of entrepreneurship and

with our new shareholder and business partner, ORIX.”

client focus.”

“One of Robeco’s fortes is that its staff is willing to go the extra mile for their clients and for their team. More than ever, client relationships must be based on trust, not power. Relationships based on trust will last longer and drive growth.” He explains how the Management Board has brought back the spirit of entrepreneurship. “Robeco’s overall performance has improved through focused operations. The client portfolio has been expanded to include new clients, increasing turnover and profitability. We have also streamlined our IT performance over the year.”

After the carve-out of Robeco’s banking activities and assets and liabilities, the group’s financial-risk profile improved significantly, he says. Relatively small exposures to market and credit risk remain as a result of Robeco’s business activities. Risk control is embedded in every step of the decision- making process, both with regard to fund management and mandate management for clients, and Robeco’s risk-control framework.

2013, the beginning of a new era for Robeco

13

14

Performance Insights

A landmark year for Robeco factor investing Since 1994 Robeco’s quantitative specialists have been successfully running rules-based portfolios.

Robeco’s low volatility and emerging market quant investment strategies proved highly successful.

In 2013, Robeco’s quant investing concept gained further traction as large institutional investors in the US and the Netherlands embraced its factor investing approach. Hans Rademaker, Robeco’s CIO, and Joop Huij, senior quantitative researcher, reflect on these positive developments.

Hans Rademaker: “With the

“Factor investing works”

emergence of quantitative investment

On the buy-side, asset owners

strategies, Robeco has shown that

have become more cost-, risk- and

it is possible to move beyond the

performance-sensitive and seek

classic frontier of active and passive

evidence-based proof, says Joop

investing.” Robeco research found out

Huij, senior quant researcher at

that investment portfolios based on

Robeco and Associate Professor

factors such as value, momentum or

of Finance at Rotterdam School of

low volatility can perform better than

Management. “The huge advantage

the traditional market-cap-weighted

of factor investing is that it is based

indexes. This research was translated

on empirical evidence.” He examined

into active investment strategies that

the data of approximately 7000 funds

aim to exploit factor premiums in

over the 1990 - 2010 period seeking

the most effective way by avoiding

proof whether active managers with

unrewarded risks and unnecessary

exposure to factor-based investment

Joop Huij

portfolio turnover. Rademaker:

strategies consistently realize excess

Factor investing works

“Using a quantitative approach

returns. “The results indicated

allows investors to obtain the desired

that factor investing works.” His

risk-reward profile in a sound,

conclusion: active managers who

sensible and cost-effective way.”

are not exposed to a factor investing

2013 Milestones – Assets under management purely based on quantitative models reached EUR 20 billion ; *

– Two new strategies launched in 2013: Robeco Value Equities and RobecoSAM Quant Sustainable Global Equity; – Robeco’s Momentum Equities Fund, launched in 2012, had an annual return of 25.49% compared to the return of the benchmark** of 20.43%. * At 31 December 2013 ** Until 30/09/2013 MSCI World Index and since 01/10/2013 MSCI All Country World Index

Past performances may not be representative for future results and actual returns may differ significantly from expectations expressed in this document.

2013

20

EUR billion AuM based on quantitative models Hans Rademaker

It is possible to move beyond the classic frontier strategy have only a 20% chance of

off the shelf, he says. “Our factor

largest quant research teams requires

growing, especially from US-based

outperforming their benchmarks.

investing suite provides building

strong links with leading universities.

clients. Rademaker: “As factor

By investing in one factor this

blocks to meet investor-specific

In 1994, the first stock selection

investing will become mainstream,

figure would increase to 51%; three

preferences for risk and return, in

models were used in Robeco equity &

we are uniquely positioned to provide

factors meaning the chance of

close cooperation with our clients.”

fixed income strategies.

effective solutions to our clients in this

outperformance would increase to

To facilitate this, Robeco applies a

Following the success of these

area. We are building on a research

even 80%. Huij: “With the right factor

proprietary screening tool to analyze

models, Robeco launched a

heritage dating back to Robeco’s very

and the right manager, the chances

existing client investment portfolios.

100% quantitative equity product

first CEO Rauwenhoff in the 1930s

of outperformance could even be

Rademaker: “Also important

line in 2002. Currently, quant

who said that “Every investment

higher.”

is the involvement of Robeco’s

investing spans a wide range of

strategy must be research-driven”.

Management Board. Being a truly

investment strategies, with different

While celebrating 20 years of quant

Meeting investor profiles and positions

market-oriented organization means

regional exposures and risk-return

investing, Robeco’s CIO emphasizes

that our board members, including

characteristics. Some of the funds

that its investment philosophy will

Typically, Robeco’s researchers are

myself, are client-facing which is

based on quantitative models are

continue to be evidence-based, with

assessing the “what” and “why”

highly appreciated.”

available to retail investors as well.

integrated risk management and

key to know why certain patterns

Strong ties with academia

occur. Only then will you be able to

Robeco demonstrates that in-depth

Celebrating 20 years of quant investing

have access to the premium factors.”

research is vital for investment

Quant strategies being one of its

Robeco is not just selling products

success. Harboring one of Europe’s

cornerstones, Robeco sees demand

underlying factor investing. “It is

focus on prudence.

15

Performance Insights

Assets under management EUR x billion

Net result EUR x million

250

200

Assets under management development ‘10-’13 197

250

181 205 bln.

205 200

150

189

200

134 118

150

100

50

100

50

0

50

135

135 bln.

+46 bln. +24 bln.

-11

2009

2010

2011

2012

2013

-50

0 2009

2010

2011

2012

2013

Investment results 2010 - 2013

0

AuM as of 31-12-2013

150

Net cash flow 2010 - 2013

150

100

150

AuM as of 01-01-2010

Financials

16

Robeco’s assets under management have grown to EUR 205 billion at the end of 2013 Operating income EUR x million 800

Operating expenses EUR x million 776

764

600 726

572 482

500

482

481

Total 1504 Male 1008 Female 496

Total 1322 Male 894 Female 428

Total 1260 Male 845 Female 415

2011

2012

2013

1500

600 512

400

500 400

1000

300

300

200 500

200 100

100 0

2000

528

680

700

FTEs male/female

2009

2010

2011

2012

2013

0

0 2009

2010

2011

2012

2013

2013

8 16 17 21 2 2 38 64 5 2 21 9 205

Assets under management by domicile

EM fundamental Quant Equity Credit FI Rates & Aggregate FI Quant FI Thematic US Value Equity HCA Transtrend Private Equity Fiduciary Management Other bln.

41% 10% 46% 3%

Netherlands Other Europe US Rest of World

62% 23% 15%

Equity Fixed Income/Multi Market Other

47% 53%

Institutional Wholesale/Retail

Assets under management by asset mix

Jurgen Stegmann (CFO): “Our investment teams have had a successful year and several have achieved truly superior excess returns for our clients.” In 2013, 75% of our products outperformed their benchmark (over a three-year period, gross of fees).

Robeco’s assets under management have grown from EUR 132 billion at the start of 2010 to EUR 205 billion at the end of 2013.

Of these assets, 47% are from institutional sources.

Our EBIT has increased by 84% from EUR 157 million in 2010 to

Assets under management by client type

EUR 290 million in 2013. Since changing owner in 2013, Robeco has managed to attract a net inflow of EUR 1.5 billion and has realized a net profit of EUR 118 million. “While increasing our operating income, we have also raised efficiency levels in the past few years and have succeeded in reducing our costs. This is a huge achievement, especially if you take into account that our client service levels have gone up, as the latest customersatisfaction surveys show. In the coming years, Robeco will continue on its growth trajectory, building on the foundations laid over recent years.”

Unaudited numbers Source: Robeco

Financials

Assets under management by investment capability

17

18

Performance Insights

Any financial analysis is incomplete if it Robeco is convinced that taking sustainability factors into account results in making better-informed investment decisions. Leni Boeren, member of the Management Board of Robeco, and Michael Baldinger, CEO RobecoSAM, elaborate on Robeco’s belief in Sustainability Investing (SI) and on the achievements made in 2013.

Where does Robeco’s belief in SI stem from?

sustainable investment funds (Duurzaam Aandelenfonds) in 1999 and Robeco’s

Boeren: “We advocate SI because we believe that good corporate governance

Responsible Private Equity Fund of Funds in 2001.”

and social responsibility enhance the long-term risk-return profiles of our investment portfolios. We incorporate Environmental, Social and Governance

What angle does Robeco choose and why?

(ESG) factors into our investment process and are involved in active dialogue

Baldinger: “We are the only asset manager that has the capability and the

and voting activities. In 2013, Robeco held an active dialogue with 221

ability to meet the different needs of asset owners who want to embrace SI.

companies worldwide and voted at 2916 shareholder meetings.”

No one else can offer this range of SI-integrated investment solutions across all asset classes, featuring a strong track record in resource efficiency theme

Baldinger: “I am truly convinced that any financial analysis is incomplete if

strategies, proxy voting, engagement, impact measurement, sustainable

it ignores financially material ESG criteria. Incorporating these in investment

indexes, exclusion capabilities, portfolio screening or tailor-made investment

decisions is in the best interest of our clients. Since 1995 and 1999 respectively,

solutions and manager selection.”

RobecoSAM – Robeco’s specialized subsidiary for Sustainability Investing – and Robeco have been running ESG mandates and strategies for our clients.

Great examples of our early commitment are the launches of our dedicated

FRANÇOIS VETRI, Head of Corporate Communications RobecoSAM, Zürich - Educating the public is an important aspect of public relations. Sustainability Investing (SI) is a topic where we saw a need to raise the level of knowledge among the public. That’s why we developed a short, to-the-point informational animation about SI. The over 160k views on Youtube and the fact that global media reported on our animation makes me very proud of my team. This is PR at its best.

2013

ignores financially material ESG criteria voted at

2916

shareholder meetings Boeren: “The ESG information Robeco uses typically comes from RobecoSAM’s Corporate Sustainability Assessment, and is integrated at both the company and country levels in our equity and fixed income products. Through our expertise and the sophisticated database, we have been able to integrate ESG across a range of products and services within the entire Robeco group and provide custom-made SI solutions.” (see box next page) Baldinger: “Our SI expertise differentiates us in a tough competitive environment and recently played an important role in winning a mandate from a Central Bank in Europe and from a large French pension fund.”

What will the role of investors be within 5 years from now?

Boeren: “We see SI gaining more traction with investors, slowly but steadily, and we expect that it will gain tremendous momentum in the next few years.

19

20

Performance Insights

Custom-made SI solutions for clients • Mandate in France: Robeco Boston Partners US Large Cap Value Equities and RobecoSAM SI overlay, showing the strength of collaboration between Robeco’s investment expertise in Boston and sustainability expertise in Zurich • New function: RobecoSAM SI Client Specialists are having integrated dialogues on SI and are developing customized SI solutions for sophisticated investors • Country Sustainability Ranking sparked much attention in 2013: a joint effort of quant expertise in Rotterdam and sustainability expertise in Zurich • Robeco introduced RobecoSAM Quant Sustainable Global Equity, which takes a quantitative approach to investing in financially attractive and sustainable companies.

A growing number of PRI* signatories, both asset owners and asset managers,

including the positioning of RobecoSAM within the group.

are committed to integrate ESG into their investment process. The first two

In 2013, the rebranding and alignment of activities underscored the deep and

months of 2014 saw the PRI add 30 new signatories to the list of more than

interdisciplinary collaboration between the specialists in Zurich and Rotterdam

1200. Thus, PRI adds to US$ 34 trillion signatory strength. Furthermore, Austria,

which pursues one single objective: to offer our clients an all-encompassing

Australia, France and Sweden have passed laws in favor of SI. This means that

service and product offering in the field of SI.”

pension funds must integrate ESG factors. Those that do not dedicate the time to offer ESG integration will surely not be meeting their stakeholder expectations in the future. Consultants are also embracing the topic.”

How does RobecoSAM’s rebranding contribute to operations and what’s in it for clients?

Baldinger: “We rebranded from SAM to RobecoSAM in 2013. Thanks to this, brand characteristics that were associated with SAM, most importantly SI pioneering and specialist focus, are combined with Robeco brand values of broad asset management expertise, tradition and institutional quality. This also enables Robeco to focus on offering SI solutions for clients, tailored to their needs.”

Boeren: “In the past years, especially since Robeco joined forces with SAM in 2006, we have convincingly positioned ourselves as one of the global leaders in SI. Robeco decided to further align and accelerate the group-wide SI activities, *

Principles for Responsible Investment, www.unpri.org

2013

2013, an exceptional year Jay Feeney

Our mission is to do better than that Joseph – Jay – Feeney, co-CEO and CIO of Robeco Boston Partners in Boston, USA, is pleased to state that: “2013 was an exceptional year from many different perspectives.“

“First and most important, investment

strong, as we recorded substantial increases in

performance was very strong across all our

revenues, operating profits and margins.

strategies, with each product outperforming

11

billion

its benchmark index. Secondly, our investment

Robeco Boston Partners has one investment

performance over the past several years

approach that is applied to all of our strategies.

propelled very strong sales activity. In 2013,

We are value investors and we are looking

Robeco Boston Partners gained nearly 11

for a combination of inexpensive valuation

billion dollars of net new cash flow, almost 20

for businesses that generate high returns on

percent of our total assets under management.

invested capital and which also show signs of

Our objective is to double the assets under

improving business momentum. From our

management in the next five years. We believe

perspective, equity prices look more or less fairly

that the biggest contributors to this growth will

priced, meaning that they embody an expected

be large cap equities, global equities and the

return in the range of seven to nine percent a

global long/short strategy. And thirdly, Robeco

year. Our mission is to do better than that.”

Boston Partners’ financial results were also very

21

22

Performance Insights

Changing pensions environment offers opportunities It is Robeco’s ambition to grow into a major pensions player. Both in the Netherlands and further afield.

This is not a new idea – it is something the company has been focusing on for a while.

A dynamic pension market

Strength

The pension market is a dynamic place to be – particularly in developed

The changing pensions environment offers opportunities. In order to take

countries like the Netherlands. The aging population means that it has

advantage of this, Robeco offers a varied range of pension solutions in the

become less certain that we will be able to afford our retirement provisions.

market. The phenomenon of the PPI (an Institution for Occupational Retirement

And the guarantee of a solid pension can no longer be taken for granted.

Provision) is relatively new but growing fast. Robeco can also take on parts of

Old structures change. But where things are actually heading is still anyone’s

the investment process such as the interest-rate and currency policy, and its

guess. However, there are a number of evident trends. According to Eric van der

‘smart’ investment products are already selling well to individual pension funds.

Maarel, head of Institutional Sales and Account Management for the Benelux,

In the last few years, Robeco’s low volatility funds have also become much more

pensions are increasingly becoming the responsibility of the individual. He

popular. These funds respond to the demands from the pension sector for less

indicated that new, more stringent legislation will make it more difficult and

investment risk while retaining the opportunity to generate attractive returns.

expensive for companies to maintain their own pension funds. The fact that

Robeco’s strength? Van der Maarel: “That our specialists are constantly able to

pension managers are also being held more accountable for performance is

translate new developments in terms of regulation into customized solutions

also a stimulus to look for new methods. “It is a complex issue”, says Van der

for our clients. ‘Robeco is not an advocate of the one-size-fits-all product.”

Maarel, “as companies and pension managers cannot just shy away from their pension obligations. After all, this is a major employment benefit.” It is already becoming apparent in which direction the pension sector is moving. In the last

Tom Steenkamp

few years, the number of Dutch pension funds has diminished from more than

We have everything we need to succeed

800 to just 350 today, and pension experts see this trend continuing.

2013

Eric van der Maarel

Robeco is not an advocate of the one-size-fits-all product

12%

Current share of the Dutch pensions market According to professor Tom Steenkamp, head of Robeco Investment Solutions &

our clients are happy with us.” Robeco’s current share of the Dutch pensions

Research, Robeco has everything it needs to succeed. Knowledge forms the basis

market is around 12%. Around one third of the assets Robeco has invested

– which is why Robeco has employed leading pension experts. “We are actively

are pension-related – though this figure may be even higher. Van der Maarel

involved in the pensions debate.” But, as Steenkamp also points out: “Robeco is

explains: “You cannot draw a line between what are and are not pension assets,

fundamentally an investment firm and having a good pension all comes down to

as many private investors are also investing for their retirement.”

the investment result.”

Ambition 2013

2013 can be described as an interim year – a year during which seeds were

Last year was a mixed year. Robeco’s PPI solutions were extremely successful.

sown for the future. Robeco’s pension objectives still remain just as ambitious.

We won the majority of the pitches we made in 2013. For example, after the

Steenkamp: “Regulation permitting, Robeco will also develop into a provider

liquidation of pharmaceutical company Schering-Plough’s pension fund, the

of products for the benefit-payment phase in the next few years. We are now

largest portion went into the fund of parent company MSD (Merck Sharp &

primarily involved in the pension-accrual phase.” Van der Maarel: “We want

Dohme), with Robeco receiving some of the mandates. In addition, part of the

to emerge as a leading pensions player from the current period of consolidation

existing top-up pension scheme was also placed with the Robeco PPI, Robeco

in the Netherlands. We also have international ambitions.” In 2014, Robeco

Smart Pension. However, there were less opportunies in the market for fiduciary

will take its first cautious steps towards overseas expansion. Steenkamp: “This

mandates. Van der Maarel: “As yet, there is no clear picture of what the new

is difficult, as pension legislation differs from one country to another. Going

legislation will involve. As a result, the market for fiduciary management is still

forward we want to see what opportunities exist for our pension products in

locked. Everyone is waiting to see what the regulators will do.” Despite this, his

Germany and Switzerland. And we would be happy to work with any large

colleague Steenkamp is proud of what has been achieved. “We have done much

international company that wishes to harmonize the pension obligations of

to bind our existing clients more closely to us. We have been successful in this;

all its employees.”

23

24

Performance Insights

Outperformance is no coincidence “It’s not about winning prizes, but about performance for our clients.” These were Sander Bus’ comments on winning the Institutional Investor Award as Europe’s best high-yield bond manager of 2013.

The Robeco European High Yield Bonds Fund

Keep innovating and improving

realized an annualized return of 9.30% over the

The approach pays off. Assets have grown

last three years*. The US financial publisher’s

25% each year since 2008, with assets under

rating was based on Robeco’s positive long-term

management of EUR 20 billion in early 2014.

performance and consistent investment success.

Sander notes that “Investing is like putting the jigsaw pieces together and combining all

Go the extra mile

sorts of information. If you succeed in this,

Sander Bus joined the team in 1998 and

you’ll be able to achieve outperformance.

together with Victor Verberk he heads Robeco’s

This outperformance is no coincidence. Yet,

Credits team. Sander: “We are fortunate to

tomorrow is another story. We have to keep

have a well-organized team with dedicated

innovating and improving.” Among the

professionals who are committed to going the

challenges going forward will be: to keep

extra mile. It’s about close cooperation and

increasing the assets, deepening the research

everyone fitting the job that best matches his

base, and exploring opportunities for growth

or her skills.” By using a top-down approach

such as loan products.

his integrated credit team of 12 career analysts – investment grade, high yield and emerging credit – looks at bond-issuing companies, and studies their financial solvency, strategy and

Institutional Investor Award for

sustainability with a global perspective. “We are

Europe’s best high-yield bond

contrarians,” he says, “and we’re not following the crowd or conventional thinking.”

manager of 2013

Sander Bus, Head of Robeco’s Credit team

* based on share prices Past performances may not be representative for future results and actual returns may differ significantly from expectations expressed in this document.

2013

A global perspective is key Meet Jack Neele, portfolio manager of Robeco Global Consumer Trends Equities. He has been portfolio manager since the fund’s inception in 2007 and was joined by co-fund manager Richard Speetjens in 2010.

Robeco Global Consumer Trends Equities

for strong global brands including Starbucks,

delivered an annualized return of 16.08% over

Nike and Zara.” These, and other household

the last three years.* The fund aims to provide

names, represent the defensive part of the

long-term capital growth by exploiting the

portfolio. “Trend number three is the ‘emerging

trends which will shape consumer spending

consumer’ in emerging markets where the rise

over the next years and investing in global

of the middle classes fuels the demand for basic

companies that contribute to these trends.

goods, luxury products, gaming and gambling.”

Three main trends

Continued focus

Robeco Global Consumer Trends Equities

Through continued focus and by selecting the

invests in a number of structural growth trends

structural winners within these trends, the

in consumer spending. Jack: “First, there is

fund’s performance has been outstanding.

the ‘digital consumer’ trend which reflects

What sets the fund apart is its flexibility to

the huge shift towards online shopping. The

invest in trends beyond the normal scope of

Pure-play corporates

second trend focuses on consumer preferences

traditional sector funds, allowing the fund

As for the company selection, the fund

managers to invest in defensive and cyclical

managers focus on pure-play corporates.

consumer goods, but also in technology.

“Typically, these tend to be more transparent

A global perspective across the entire

companies that produce better returns,” Jack

Citywire names Jack Neele one

capitalization spectrum is also key.

argues. The fund has seen rapid growth. Assets

of the world’s ten best managers

Themes and trends are investigated top-down.

under management grew from EUR 15 million

Jack: “These themes have a low correlation,

in 2007 to about EUR 1 billion in early 2014.

over five years

giving us flexibility to adjust to different market climates.”

Jack Neele, Portfolio manager Robeco Global Consumer Trends Equities

* based on share prices

25

26

Performance Insights

Successful transition to new service The year 2013 was an exciting one for Robeco’s direct sales channel in the Netherlands – for both asset manager and clients. In April, Robeco switched to a completely new concept of service. This was the outcome of a process that had lasted around a year – a major transition.

It involved replacing the entire back

smart phones just as young people

offering, it was a substantial project

banks and insurance companies are

office and transferring all the clients

do. Only a very small group had

with operational impact.

coming under increasing pressure as

to the new system. A completely

difficulties with the shift to online

As if all this was not enough, Robeco

a result of new regulations, so Van

new website was launched too.

services, according to Van Wensem.

also wanted to attract a new,

Wensem feels that it is even more

´Very exciting´, is how Monique van

‘We tried to help them to the best

younger client group in addition to

important to make your voice heard

Wensem, responsible for direct sales,

of our ability, but in some cases we

its existing clients. A campaign that

in the market. ‘This is something

describes it. ´Because how much

unfortunately had to part company.’

ran from September to December

we can achieve through this direct

research you carry out in advance, you

Another major change was the

resulted in thousands of new clients.

channel. Because we are in close

never know for certain how clients will

transfer from an advisory model to

As far as Van Wensem is concerned,

contact with consumers, we can test

react. Most appreciated the changes

an execution-only service. We also

this reaffirmed us that the new

new ideas. This gives us valuable

– including, for example, our decision

streamlined the product range, and

service also appeals to this younger

insights, which can benefit not only

to stop issuing paper statements.’ Our

Robeco now no longer sells third-

generation.

our direct clients, but also wholesale

new service offers major advantages.

party funds. ‘In fact, we feel that we

Implementing changes has become

can only offer the best service if we

Although the total invested assets

Wensem expects Robeco – currently

more straightforward and it is easier

focus on selling our own products’,

of Robeco’s 220,000 direct clients

number two – to further strengthen

to pass on investment transactions.

explains Van Wensem. And we

only form a small proportion of

its retail position in the wealthy

Moreover, the majority of people in

transferred our Dutch banking

the company’s total assets under

Dutch market. After all, fitting in with

the Netherlands are now online. The

activities to the Rabobank group.

management, this direct channel

global developments also the Dutch

older generation use tablets and

While this did not impact our retail

is very valuable. Sales through

citizens are increasingly responsible

and even institutional investors. Van

2013

Most clients appreciated the changes

for their own financial future. She feels that nowadays young people are virtually forced to invest in order to achieve their financial goals.

‘Saving alone just doesn’t suffice.’

These developments offer Robeco serious opportunities. There are few parties with Robeco’s years of experience that are purely focused on fund investing. Robeco’s objectives are clear. Van Wensem: ‘We want to make online investing possible for everyone. We feel that investing should not be difficult – anyone should be able to invest, in a simple but responsible way. It is our aim to make this possible.’ After a successful year in 2013, she is confident about the prospects for 2014.

NL

Retail campaign resulted in thousands new clients

27

28

Performance Insights

WHAT MADE US PROUD Our service quality received the highest rating of all asset managers

ROBECO HONGKONG - 2013 was a busy year for us in Asia. I’m delighted to be involved in positioning Robeco for the next stage of our growth in this region.

We successfully launched our first branding campaign to increase the visibility of Robeco in the region by establishing an indelible link with Robeco’s proud Dutch heritage and 85 years investment experience. Along with that, we tightened

ROBECO GERMANY - The German

our marketing and communication standards and we further localized our

office is proud of the results of a

marketing materials to meet customer needs and jurisdiction requirements.

survey conducted by FERI EuroRating Services. Within this analysis we got feedback from clients, but also from prospects. Our products were ranked in the Top 20% of more than 30 local and international asset managers. More important, our service quality received the highest rating of all managers, which confirms our ongoing focus on consultative selling.

Michael Fink

Angela Fung

RECEPTION - Our team really made an effort in 2013 to give our visitors an ever warmer welcome, and make sure they leave with a big smile. One change really contributed to this goal: our new proactive attitude and handing over a small gift (organic apple juice). This delivered a lot of positive feedback.

Wendy Olierhoek-Wulffraat

2013

TRANSTREND Joep van den Broek - Transtrend is a 100%

Our main focus is always to act in the best interest of our shareholders

subsidiary of Robeco, that purely focusses on systematic trading strategies. We – as well as our competitors – faced challenging times in 2013. However we have continued to focus on remaining loyal to our investment philosophy and carefully developing our investment strategies, knowing that there is no quick fix. Although last year was challenging, our five-year results are still attractive in comparison to other asset classes. A crucial part of what we do is to extensively and pro-actively inform our investors about our approach. So, in general, we move solidly with the tides of time while adhering to our core culture and philosophy.

Rosamaria Gangale

HARBOR CAPITAL ADVISORS - As part of Harbor Services Group, the shareholder servicing agent for Harbor Funds, it is important that we are keeping up with securities regulations and industry standards. There have been many significant changes over the last year (e.g. tax reporting, abandoned property, etc.), and I am truly proud of how Harbor quickly and efficiently adjusted to these changes, while never forgetting that our main focus is always to act in the best interest of our shareholders.

CLIENT SERVICE & REPORTING -

We took major steps in 2013

Looking back on 2013, the Client

Karin van Baardwijk

Service team managed to set up

Hans Roodhorst

the implementation of a completely

OPERATIONAL RISK MANAGEMENT - Risk Management

new client reporting system which

has renewed the existing control framework that

will deliver high added value to our

was recently labelled as being “ahead of market

client service offering, focusing on

practice”. In this framework risks are identified based

better timelines and greater accuracy.

on their significance, and controls are assessed by line

We took major steps in 2013. This

management on a quarterly basis. I am particularly proud

was realized in close cooperation

of the fact that clients responded well to this framework,

with many Robeco colleagues. We

which combines relevant risk information from all three

look forward to finishing this project

lines of defense and enables solid and transparent decision

successfully in 2014.

making by means of integrated risk reporting.

29

30

Performance Insights

Thoughts and talks Our Investment Engineers strive to realize optimal returns for our clients, using thorough analysis to establish a clear idea on future movements in the financial markets. We use all the means available to us to disseminate our own and other experts’ visions and analyses to the outside world.

This way Robeco anticipates events, rather than reacting to them.

Robeco does not keep its expertise to itself. We use all the means available to us – including social media – to disseminate our own and other experts’ views and analyses to the outside world. Covering topics ranging from asset allocation and the unwinding of quantitative easing to sustainability investing and the investment consequences of armed conflicts in the world. And Robeco also uses many forms of

Robeco World Investment Forum

Robeco Live

communication to enter into an active

Knowledge and interaction were the principal spearheads

For five days (15 - 19 January), a total of 1,500 private and

dialogue in order to be able to move

for this event held on 19 and 20 April in Amsterdam.

professional visitors debated what the financial future

forward together with its clients.

140 professionals from all over the world participated in

holds and discussed the macro-economic outlook. In line

In 2013 we saw our campaigns and

discussions with high-level speakers such as Hernando de

with the latest trends, the event relied heavily on the use of

events getting more interactive than

Soto, Marc ‘Dr. Doom’ Faber and Roger Urwin.

social media. Two prominent speakers at the meeting were

ever. Some of last year’s highlights:

André Kuipers (Dutch astronaut) and Professor Bas Jacobs (leading economist).

31

2013

Santander Partner Program

Robeco anticipates events, rather than reacting to them

Robeco is contributing to the extensive growth of the Latin American asset-management market by informing and educating investors. This has been part of joint activities shared with Santander Private Banking and Santander Asset Management. In 2013, Robeco also strengthened its presence in the region via advertising, conferences, events and educational material.

Innovative investing Based on 80 years of looking ahead

ESG, Le Grand Débat 2013 La finance responsable aujourd’hui : Effetawards de mode ou engagement réel ?

RobecoSAM in France

Asia Pacific Branding Campaign

In September 2013, more than 120 people attended the RobecoSAM awards conference in Paris,

Between mid-June andglobally, December, Robeco worked on we offer our clients investment solutions with a proven track record.

As an investment pioneer, we have been innovating since the day our company was founded in the Netherlands. Leveraging our local knowledge

Le 18 septembre 2013, Elysées Biarritz - Paris ‘ESG, le grand debat’. This was the first conference held in France to be dedicated to sustainable

Explore the opportunities at www.robeco.hk strengthening its brand recognition in South East Asia.

investing. A full range of market participants – asset owners, asset managers, rating companies

Through online media and hard-copy campaigns, Robeco

and academics – were represented. This event was organized in partnership with l’Agéfi, a reputed

sought to establish an indelible link between its proud

daily financial newspaper. Robeco presented the yearly RobecoSAM awards to the French companies

Dutch heritage and strong track record in emerging-

En partenariat avec:

Important Information Issued by Robeco Hong Kong Limited, licensed and regulated

by Securities and Futures Commission of Hong Kong.

ranked highest in their sector in terms of ESG criteria. This helped to enhance the status of Robeco

markets investing. The results were promising.

France as a socially responsible company with a strong focus on Sustainability Investing.

0073_Adv_18th Anniversary_Hong Kong_210x276mm.indd 1

Programmaboekje ESG Forum 09-2013.indd 2

16-09-13 11:05

19-09-13 09:32

32

Performance Insights

It is more than just manager selection Fiduciary asset management plays a key role in Robeco’s range of services. And Corestone fulfils an important function within the department charged with this task (Investment Solutions & Research). This subsidiary, domiciled in Switzerland, is involved in the selection of external fund managers and portfolio construction.

Its role in the latter was particularly crucial in 2013.

Extra background

a key role in portfolio construction.”

Martin Mlynár, Managing Director of

managers is causing a bias in the

Transparency of risk

composition of the portfolio as a

The financial crisis has made

Corestone, looks back on 2013 with

“Fund managers are always required

whole, leading to greater risk. The

regulators more critical and they

satisfaction: “This year it became

to provide us with a look-through

inclusion of a certain fund can seem

now require institutional investors

apparent to me that Corestone

analysis on the contents of their

a sensible choice if it is the only one

to have a better understanding of

had finally found its place within

portfolios. This means we know

in its category, yet it may still not be

the risks that relate to investment

Investment Solutions, partly because

not only when they are performing

the right option for a mix of funds.

portfolios. This trend has been

of the outperformance of the

well, but also see what causes

This is an example of how we provide

under way for years, but became a

managers we selected.” A key factor

good or sometimes disappointing

further background - something

more prominent issue in 2013. “The

in the acquisition of new clients

performance. It also enables us to

which boosted our outperformance

proposition offered by Corestone is

is that Corestone does more than

see whether the combination of

this year.”

perfectly geared to addressing the

just manager selection. Mlynár: “We don’t so much select the best fund managers for our clients, but rather look for the optimum mix

Martin Mlynár

of managers that best reflects the

I have high expectations for the future

investment strategy concerned. We always do this within the context of the entire portfolio and therefore play

2013

requirements brought about by such

transparency on the various types

changes in the pensions world, both

of risk. The integrated risk approach

New investment opportunities

in the Netherlands and elsewhere”,

we apply to portfolios means we

Another theme in 2013 was the

according to Mlynár.

give clients greater control over their

‘search for yield’. In this period of

pension funds. We are able to inform

persistently low rates, investors are

The fact that clients are recognizing

them at a moment’s notice on the

looking for new opportunities to

what a useful role Corestone has

extent to which a portfolio is exposed

generate returns. Mlynár: “We play

to play in this area is a highlight as

to certain risks.”

this trend by further researching the

far as he is concerned. “A keener

opportunities offered by bank loans,

insight into the composition of the

high yield and illiquid asset classes,

funds in the portfolio ensures greater

such as private debt.”

33

34

Performance Insights

Breakthrough Arnout van Rijn, co-head of the Asia Pacific team in Hong Kong and fund manager of the Robeco Asia Pacific Equities Fund

People started to notice that we were performing well

“2013 was a breakthrough year for Robeco’s Hong Kong team. Five years after we first launched our operations here, we won three large institutional mandates. People started to notice that we were performing well. Not that 2013 was an easy year for investing. With the exception of Japan, economic growth in Asia was nothing to get excited about. This was why investors scrambled to get into stocks with high growth potential, which then saw their valuations skyrocket as a result. Despite this a value fund like Robeco Asia Pacific Equities does not benefit from such a scenario. However, our heavy weight in Japan and stock selection in Korea and China both proved successful. As a result, last year the fund recorded a net return of twelve percent; a larger return than our benchmark. This feels good, but also puts some pressure on us. It is great that we have had five consecutive years of success, but we also want this to continue in the years to come. The more our client base expands, the more important it becomes to carry on performing well.” *

Past performances may not be representative for future results and actual returns may differ significantly from expectations expressed in this document.

2013

Selecting the right stocks Victoria Mio, co-head of the Asia Pacific team in Hong Kong and fund manager of the Robeco Chinese Equities Fund “2013 was all about selecting the right stocks.

The Chinese stock market hardly moved, but the Chinese Equities Fund had an annual performance of 7.03% and did much better than our benchmark*. Our bottom-up stock-selection strategy paid off. In a market of contracting growth, you should invest in companies with strong and predictable earnings. We looked primarily at stocks that benefit from government reforms in the health-care sector and the demand for alternative energy sources. Innovative companies boosted by the explosive growth in the mobile Internet market also performed well last year. We avoided the banking and real-estate sectors, as these are not attractive areas in times of monetary tightening.

Of course I am proud of this result – but I certainly didn’t achieve it alone. Everyone in the team made a valuable contribution. In an alpha year like 2013, it is the bottom-up ideas that count. I have no plans to alter the portfolio. The major themes of 2013 are set to continue into 2014.”

35

Net cash flow + 24 Billion 2010 - 2013

200 EBIT

119

mio

2013

Total AuM >

11

221

active dialogue with 221 companies

Billion

12%

Current share of the Dutch pensions market

billion

1260 NL

FTE

Retail campaign resulted in thousands new clients Quantitative models reached EUR

AuM by client domicile

415

19

Billion

2916

voted at 2916 shareholder meetings

Female

EBIT

NL

Awards

20

119

mio

222.000 Direct Retail Clients AuM by asset mix

Important information This Robeco 2013 Performance Insights has been prepared and presented by Robeco Groep N.V., which is incorporated in the Netherlands. It is solely intended to supply the reader with general information about the investment-management activities and assets under management of Robeco Groep N.V. and its subsidiaries worldwide. It does not constitute an offer to sell or solicitation of an offer to buy any investment product or program offered by Robeco Groep N.V. or any of its subsidiaries, and is not intended to be used as the basis for an investment decision. Robeco Groep N.V. provides investment-advisory services, including investment advice on investment products and programs, through its authorized local subsidiaries. All investment-adviser subsidiaries and affiliates are registered with their respective local regulators.

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