Financial results

Net cash inflow
Robeco’s assets under management showed a growth of 22% in 2009 from EUR 110.7 billion to EUR 134.9 billion. This increase resulted from a positive net investment result of EUR 19.2 billion and a net cash inflow of EUR 7.5 billion. In terms of net cash flow, Robeco saw its best annual performance ever in 2009. The net cash inflow of EUR 7.5 billion was well diversified over products and continents. The retail cash inflow was strong in the US, particularly into the mutual funds of Harbor Capital Advisors. Also in Europe, cash inflow into retail products was impressive but was negatively affected by the fact that some structured products were unwound at maturity. The net cash inflow from European institutional business was strong, with positive cash inflow particularly in emerging-markets products. In Europe, managed futures investment advisor Transtrend was able to attract net cash inflow, despite the fact that its Diversified Trend Program experienced negative returns.

Lower performance fees
Robeco recorded its first loss making year in history. The net result amounted EUR -11.0 million. 2009 operating income decreased by EUR 376.7 million to EUR 512.2 million (-42.4%). Lower performance fees were the main reason for this decline in income from asset-management activities. In particular, the performance fee-related products of Transtrend showed a negative investment return. The remarkable recovery of the financial markets in 2009 and the strong net cash inflow did have a positive effect on management-fee income. Nevertheless, the overall management fee income remained behind 2008. Interest income from banking activities was negatively affected by a lower net interest margin.
During 2009 the competition in the savings market was fierce, causing interest income from banking operations to remain under pressure. Nevertheless Robeco still saw entrusted savings increase by EUR 0.3 billion. During the last quarter of 2009, the net interest margin improved slightly but was still below the long-term average.

Operating expenses amounted to EUR 528.0 million, which is 14.7% lower than in the previous year. In 2009 Robeco executed Top Shape, a program to create a more efficient organization, fit for future growth. The decision to increase efficiency was made early in 2008, after Robeco Group’s cost-effectiveness was assessed using a peer-group comparison. The financial crisis also increased the need to take urgent action. The majority of the measures were implemented in the course of 2009, mainly at the operations of Robeco in Rotterdam. This restructuring program aims to cut annual costs by EUR 78 million and in 2009 Robeco already realized EUR 41 million of cost reduction. The measures implemented reduced the workforce by 300 staff. As a consequence of Top Shape, and the fact that there were fewer projects, the level of out-of-pocket expenses for temporary staff was reduced by 33 percent. Compared with 2008, consultancy fees decreased by EUR 18.5 million (48%). In addition, the housing and marketing expenses were lower. In order to make Robeco ‘fit for future growth’ several information technology (IT) projects were carried out, which led to higher IT expenses in 2009. Robeco outsourced its IT infrastructure activities to EDS as of 1 January 2009.