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What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License
  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
  • that is a body regulated by APRA other than a trustee of:
    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993
  • that is a body registered under the Financial Corporations Act 1974.
  • that is a trustee of:
    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.
  • that is a listed entity or a related body corporate of a listed entity
  • that is an exempt public authority
  • that is a body corporate, or an unincorporated body, that:
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  • that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
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Robeco's exclusion policy in relation to the new Dutch legislation on cluster munitions

Robeco's exclusion policy in relation to the new Dutch legislation on cluster munitions

04-02-2013 | Insight

On 1 January 2013, a ban on investment in cluster munitions came into effect in the Netherlands. From 1 April this year the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten or 'AFM') will start to formally implement this ban.

The ban will affect a large number of Dutch financial institutions, including investment companies, investment institutions and pension funds, that invest or may invest in companies that are involved in the production, sales and distribution of cluster munitions or supply important parts for cluster munitions, or provide financing to such companies in other ways. This ban also applies to Robeco Institutional Asset Management B.V. (Robeco) and the Dutch and Luxembourg Robeco funds.

For a long time now, Robeco's exclusion policy has contained provisions to ensure that the company does not invest in listed companies that are involved in the cluster munitions business. In fact, Robeco's policy refers to the same international convention that forms the basis for the legislative ban.

In view of the legislative ban, the AFM has recently drawn up an indicative list of companies that are involved in the production, sales and distribution of cluster munitions or supply important parts for cluster munitions. This list is indicative and discussions are still underway between the sector and the AFM to come to a definitive, but still indicative list. The list is dynamic in the sense that it can be periodically adjusted when companies dispose of or even start up cluster munitions activities. The AFM's current indicative list will be regarded as a so-called risk radar and used for this purpose. In other words as a starting point for asking further questions if a Dutch company were to invest in any of the companies mentioned.

There are four companies on the indicative AFM list that are not on Robeco's current exclusion list. These are Aryt Industries, Ashot Ashkelon and Kaman Corp. The fourth company, Splav State Research, is not listed. Robeco can effectively substantiate and has documented why these names are not on Robeco's exclusion list. Furthermore, Robeco is still in discussion with the AFM (together with other asset managers) on this difference in interpretation. In the future, we will continue to have regular contact with the AFM to discuss the indicative list and will give new names consideration in establishing Robeco's own exclusion list.

If you are a Robeco institutional client and wish to ensure that, under the terms of your asset management agreement, investments can never be made in the three aforementioned listed companies, please contact your account manager.

Finally, it is important to mention - especially in respect to Robeco’s integrated asset management offering- that when Dutch financial institutions invest indirectly in index futures or index funds, these instruments or funds are permitted to have a maximum exposure of 5% to companies with cluster munitions activities. It is unlikely that this threshold will be achieved in our opinion. However, if the investment institution is Dutch or has a Dutch manager, it may not invest itself in cluster munitions at all.

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