Robeco Group profit up 16% first quarter 2012
Robeco Group announces results for the first quarter 2012.
Rotterdam, 21 May 2012 – Robeco Group announces results for the first quarter 2012. Robeco Group has had a very strong start to the year, with net cash inflows at a record level of EUR 15bn. Assets under management (AUM) increased to EUR 177bn (EUR 150bn at the end of 2011), demonstrating continued demand for our investment strategies and particularly our pensions offering.
Commenting on the first quarter results 2012, Roderick Munsters, Chief Executive Officer of Robeco Group said:
- 16 % increase in net profit in the first quarter 2012 to EUR 64mn (first quarter 2011: EUR 55mn)
- AUM grew with net cash inflows of EUR 15bn (EUR 7.6bn for the entire year 2011)
- More than 80% of investment strategies have outperformed their benchmarks in the first quarter
- Institutional clients predominantly contributed to strong inflows
- Institutional assets under management increased to 51% of total AUM at the period end
- EUR 45.1bn of assets under engagement at period end
- Total average excess return on all capabilities of 1.67% (gross of fees) in the first quarter.
“I am pleased to announce significant growth in net client inflows as well as profit growth in the first quarter, compared to our performance in the same period of last year. Strong asset growth demonstrates the attractiveness of our strategies. We will continue to further build our institutional client base and are securing a good reputation for our pensions offering.
In 2010, Robeco set out a five-year strategy aimed at helping our clients achieve their investment ambitions and increasing profitability, by focusing on cost efficient growth. Two years into the plan, we are confident of achieving our asset growth targets while we continued to improve efficiency, with the implementation of measures to reduce IT and operations expenses. We are on track to achieve the ambitions defined in our 2010-2014 strategy.
Robeco is working closely with Rabobank on the strategic review of the business. Our performance in the first quarter 2012 gives us confidence that the strength of Robeco’s offering to clients, the performance and sustainability of the business will support the continuation of our strategy.”
Robeco delivered net profit in the first quarter of EUR 64 million, 16% higher than in the same period in 2011. The strong inflows and the asset growth we have achieved in the first quarter have contributed to this growth, as has the performance of our investment products and Transtrend, which has returned to positive investment performance this year.
Our EBITA margin has increased in the first quarter 2012 to 49% (first quarter 2011: 47%) as a result of strong inflows and increased assets under management.
Positive investment results were realized during the first quarter of 2012. Robeco achieved total average excess returns on all capabilities of 1.67% (gross of fees) in the first quarter 2012; while 83% of assets outperformed their benchmark. Due to these positive first quarter results the 3-year figures further improved. The 3-year average excess return as of March 31, 2012 is 1.73% with 77% of assets outperforming (April 2009-March 2012). All asset classes contributed positively to these results. Absolute returns are also positive throughout the product range.
Assets under Management
At the end of the first quarter 2012 the net cash inflow from institutional clients was especially strong and well-diversified increasing the proportion of institutional assets to Robeco’s total assets under management to 51% (first quarter 2011: 45%). The total cash inflow in the first quarter was over EUR 15bn.
As a leading industry advocate of responsible investing Robeco integrates environmental, social and governance factors into its investment processes. This strategy continues to be effective, as total assets under engagement (AUE) increased to EUR 45.1bn from EUR 43.4bn AUE in the first quarter of 2011.
NB All figures are unaudited