Fitch affirms Robeco’s M2+ rating

Rating reflects Robeco’s comprehensive risk-management framework, strong corporate governance and long track record.

Fitch Ratings has affirmed Robeco’s M2+ asset-manager rating for its mainstream asset management operations in Rotterdam and money market management operations in Paris.

According to Fitch’s report, the rating reflects Robeco’s “comprehensive risk management and control framework, strong corporate governance and long track record in managing retail and institutional assets.”

Fitch’s ratings are issued on a five-tier scale of M1 to M5, with M1 being the highest. The agency further differentiates its ratings by the use of plus (+) and minus (-). It categorizes asset managers with its M2 rating as “strong”. Such companies demonstrate “low vulnerability to operational and investment management failure”.

Quality of operational platforms & investment processes recognized
Other plus points were Robeco’s “well-integrated operational platform” and its “established and disciplined investment processes”, in particular in its fixed income, global equities, emerging markets equities and quantitative capabilities.

In addition, Fitch recognized the successful integration of environmental, social and governance factors into Robeco’s investment processes, which was part of the company-wide responsible-investing policy introduced in February. The report comments that “investment teams and processes have remained stable” during this integration phase.

Balance sheet strength & backing of Rabobank
The report also made the point that the financial strength of Rabobank, Robeco’s parent company, combined with the asset manager’s own strong balance sheet, provides financial flexibility over the medium term.

There are some areas to work on, too. Fitch noted, for instance, the “scope for stabilisation of a partly renewed senior management team”. The agency added that it will monitor Robeco’s ability to maintain the quality of its investment and operational platform while implementing cost-cutting measures.

Says Hester Borrie, Managing Director Global Distribution & Marketing at Robeco: “We are proud to have been given such a strong rating by Fitch. We consider it to be recognition of the quality of our employees and the efforts they are making. The rating confirms our strong investment performance and our edge in responsible investing. At the same time, it recognizes our overall strength and effectiveness in working together across various critical disciplines.”