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Patrick de jong


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  • Introduction name function focus on private investors segment management advisory model portfolios consisting of investment funds management investment fund universe investment related consultancy Coordinated introduction of the RI fund classification for private investors Launched in February this year Share this initiative/get some reflection
  • In short bacground design of the classification coorperation with Sustainalytics our expereince so far
  • Keep this short Pure-play asset manager since 1929 Mid-size Active investment style Advocate RI, our proposition in the background is a reflection of that Belief: RI creates shareholder value SAM, leader in sustainability investing is our fully owned subsidiary We’re part of Rabo-group
  • Thinking about what to do with our proposition, it was 2008 Difficult year for investors Believe I know, we’ve been giving presentation on the situation and I got some humble lessons in the people behind the word customer Do you know what this is? B&S valuing option prices Perception: Complex products, approaches and risks they didn’t understand Crisis has had some consequences for consumer trends: simplicity and transparency
  • Provide investors with insight about the extent to which investment funds conduct activities related to RI In consultation with Sustainalytics designed a methodology As you’ll notice very SIMPLE, it is intended for private investors Assessment done by Sustainalytics Credibility of information Given this insights, people can learn and decide, based on own preferences A choice that wasn’t there up till now NOT A RATING Not ESG-integration is better than engagement It’s not about telling you with two figures behind comma how responsible a portfolio exactly is Lot of discussion, because people like figures
  • How does it work? Selected RI-related activities explicit for investors Reflection of our own view Mix of simplicity what would be understood by private investors If you go to our site as an investor, you'll find an overview Sustainable Theme: Healthy Living: aging, nutrition ESG-integration: ESG analysis & Investment decisions: BY PORTFOLIO MANAGER Active Ownership: being engaged and voted Exclusion: what policy is in place: controversial weapons, tabacco
  • For each pillar, three levels: BASIC ESG issues systematicaly integrated INTERMEDIATE Not just the portfolio manager, but the whole team Training/eduction Research, performance measurement Advanced Open about your sourcing: for example SAM is very clear about the way they get their information, for example from their questionnaire
  • Report by Sustainalytics overview of the results of the assessment procedure desk research interview with fund manager draft report verified published
  • Third party-funds of which we got good cooperation on this initiative
  • Transcript

    • 1. Responsible Investing Classification An initiative in the Dutch Retail Asset Management Market London | November Robeco – Patrick de Jong | TBLI Conference TM Europe 2010
    • 2.
      • Robeco and Responsible Investing
      • Innovation in the Financial Services Industry
      • Objective Responsible Investing Classification
      • Methodology
      • Three levels per building block
      • Sustainalytics reports
      • Our lessons learned
      • Cooperation
      Contents TBLI Europe 2010
    • 3. Robeco and Responsible Investing
      • Robeco advocates Responsible Investing and has an integral RI policy in place, covering:
      TBLI Europe 2010 Strategy
      • Robeco is a pioneer in the field of RI since 1999.
      • We believe Responsible Investing will create shareholders value and therefore value for our customers in the long run.
    • 4. Innovation in the Financial Services Industry
      • Value is:
      • C(S,t) = S N(d 1 ) – K exp (-r τ ) N(d 2 )
      • where
      • N(x) = (1+ erf(x/ √2))/2
      • Τ = T -1
      • d 1 = log(S/K) + (r + σ 2 /2) τ
      • σ √ τ
      • d 2 = log(S/K) + (r - σ 2 /2) τ
      • σ √ τ
      TBLI Europe 2010 Simplicity and Transparency If you claim being a responsible investor, you have to be transparent
    • 5. Objective Responsible Investing Classification
        • Provide private investors transparency on the policy-based integration of Environmental, Social and Governance (ESG) factors into fund management.
        • Enable private investors to compare different investment funds of Robeco and investment funds of other asset managers.
        • Classification is not a rating, it’s about providing transparency & accountability.
      TBLI Europe 2010
    • 6. Methodology ( TBLI Europe 2010
    • 7. Three levels per building block
      • Basic (ESG-integration):
      • key ESG issues are systematically integrated in company appraisals for a majority of portfolio holdings
      • Intermediate (ESG-integration):
      • the fund also provides details on internal processes to ensure effective ESG integration
      • Advanced (ESG-integration):
      • the process for identifying key ESG issues is also transparent with reference to related information sourcing
      TBLI Europe 2010
    • 8. Sustainalytics reports ( TBLI Europe 2010
    • 9. Our lessons learned
      • Responsible investing is increasingly attracting the attention of private investors
      • Nonetheless serious challenges remain:
          • Lack of common understanding of terminology
          • Thematic and values-based investing is best understood; other concepts are less understood
          • Private investors are suspicious about the value behind the proposition
          • and they are therefore very alert about the wording, for example: apart from the financial aspect a certain degree of ESG-issues is taken into account
          • But when explained clearly Responsible Investing is highly appreciated
      TBLI Europe 2010 A mix of awareness raising effort and simplicity creates opportunity!
    • 10. Good cooperation by the Dutch Investment Community TBLI Europe 2010
    • 11. Curious or do you have questions?
      • (look for the Product selector)
      • Or
      • [email_address]
      TBLI Europe 2010
    • 12. Important Information
      • This presentation has been carefully prepared by Robeco Asset Management, a trade name of Robeco Institutional Asset Management B.V. (hereafter Robeco). It is intended to provide the audience with information on Robeco’s specific capabilities, but does not constitute a recommendation to buy or sell securities or investment products.
      • The information contained in this document is solely intended for professional investors within the meaning of the Dutch Act on the Financial Supervision (Wet financieel toezicht) or persons who are authorized to receive such information under any other applicable laws.
      • The contents of this presentation are based upon sources of information believed to be reliable, but no warranty or declaration, either explicit or implicit, is given as to their accuracy or completeness. This presentation is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
      • Historical returns are provided for illustrative purposes only and do not necessarily reflect Robeco’s expectations for the future. The value of your investments may fluctuate. Results obtained in the past are no guarantee for the future.
      • No rights whatsoever are licensed or assigned or shall otherwise pass to persons accessing this information.
      • Robeco Institutional Asset Management B.V. is registered with the Netherlands Authority for the Financial Markets in Amsterdam.
      TBLI Europe 2010