New York, February 29, 2008 – Robeco Investment Management (RIM) announced
today that it is exiting its U.S. fixed income business. As a result, the
firm has entered into a definitive agreement with Morgan Stanley Investment
Management (MSIM) through which MSIM will, subject to client consent, assume
the management of approximately $4.8 billion in taxable U.S. fixed income
assets currently managed by Robeco Weiss, Peck, and Greer. The transaction
is expected to close in May 2008. Separately, RIM is in the process of
finalizing the exit of its U.S. municipal fixed income business‹a deal
expected to close in the first half of 2008.
RIM elected to exit the U.S. fixed income business as sufficient scale was
not achieved to provide a platform for significant long-term growth. As a
result, the company will concentrate its fixed income capabilities in
Europe, where it will continue to manage over $60 billion in Global Fixed
Income portfolios led by its Netherlands-based team.
As RIM enters its 10th year in the United States, its value proposition
remains the same: Bring high-quality investment disciplines from around the
world to its clients. This alignment centers RIM’s U.S. investment business
around its core strengths of value equity, core equity, and alternative
investments. These strategies constitute $18 billion in client assets in
which the firm has a long history of providing excellent investment results
for institutional and individual investors.
The continuity of the investment teams, the quality of the investment
processes, and our excellent long-term performance provide a strong
foundation upon which to continue to build the business, said William
Kelly, CEO of RIM. I am particularly excited this platform allows for
organic growth of our flagship products, and other natural product
extensions such as international equity, 130/30 equity and portable alpha
strategies.
Mr. Kelly noted that an additional key aspect of the alignment is the
introduction of meaningful employee ownership that will place equity into
the hands of key investment professionals.
Employee ownership will be an important component of RIM going forward. We
have always believed that equity ownership was integral to attracting and
retaining investment talent. By placing ownership in the hands of our key
professionals, we are further aligning the interests of our clients with us
as new shareholders.
Once the strategic decision to exit the U.S. business was made, RIM sought
quality partners that could capably manage institutional assets and serve as
an option for clients to consider for the ongoing management of their
portfolios. As a result of its due diligence RIM is confident that it has
found such a partner.
The paramount objective for RIM in this process is to provide as smooth a
transition for our clients as possible, noted Kelly. We are cognizant and
respectful that the manager selection process for plan sponsors is solely
that of plan sponsors so we wanted to offer an institutional quality option.
MSIM’s long-standing reputation, strong performance track record and
world-class client service provide such an option.
"We are excited to have the opportunity to work with and welcome Robeco
Weiss, Peck, and Greer’s clients to Morgan Stanley Investment Management,"
said David Germany, Head and Chief Investment Officer of MSIM’s Global Fixed
Income business. "We are confident that MSIM’s scale, infra-structure and
value proposition are well suited to fulfill their fixed income needs in the
long run. This agreement underscores our continued commitment to serving the
institutional market."
In addition to its US-based equity and alternative capabilities, Robeco
Investment Management has imported innovative investment solutions managed
by Robeco in Europe including the firm’s pioneering role in the field of
sustainable investing including water, climate change, and clean tech
private equity investments. This follows the successful US introduction of
its emerging market equity strategies.
