This week, we are comparing two asset managers rather than individual funds. When analysts evaluate a fund, they assess and assign ratings to its People and Process pillars while the methodology for Morningstar Medalist Ratings also incorporates and assessment of the Parent pillar. This Parent pillar is our focus this week.
When determining an asset manager’s parent pillar rating, Morningstar analysts evaluate several factors, including the firm’s ownership structure—assessing whether it prioritizes shareholder interests alone or also benefit investors—its financial strength and organizational stability, the presence of a strong investment culture and sense of stewardship as well as any regulatory concerns.
We kick this feature off by comparing Robeco and Van Lanschot Kempen , two well-known asset management firms with a strong Dutch heritage. While both firms have strong elements, the combined strengths of Robeco, results in a Parent Pillar rating of Above Average, positioning it one notch higher than Van Lanschot Kempen’s Average Parent pillar rating.
Ability to attract and retain talent
Robeco has generally demonstrated its ability to attract and retain talent. Most recently in 2024, the team successfully integrated a seasoned three-person emerging-markets debt team into its global macro team. Notably, the last time Robeco experienced a team departure due to a lift out, was in 2019 when three members of their thematic investment team left.
Despite some higher turnover in the fixed-income credit portfolio management team in the past two years (departures included experienced portfolio managers Victor Verberk, Peter Kwaak, Patrick Bawlf and Reinout Schapers), it’s been good to see the broader investment team’s turnover below 5 percent since 2022. As the firm’s expanded its global presence with offices across the globe, they have reach to tap into a larger pool of talent and notably the investment team members in London, has steadily been growing.
In contrast, Van Lanschot Kempen has seen some elevated turnover in investment teams since 2020. Particularly, the team lift of their euro credit team in 2020 and within the global small cap team in 2023, was unfortunate. Their dividend team was also troubled by reshuffles in 2021 through 2023.
Robeco evaluates investment teams over one, three, and five years with emphasis on the three-year period, which aligns well with the interests of investors. On top, certain key members can participate in Robeco’s cash appreciation rights that are linked to the performance of the firm and vested over longer periods (up to five years). Most Robeco strategies are managed by at least two portfolio managers—usually in a collegial fashion—mitigating some key-person risk.
At Van Lanschot Kempen, they’ve made improvements to their compensation structures and adopted a more formal approach. The firm now also evaluates investment teams over one, three, and five years but with emphasis on the three- and five-year horizons. We believe the compensation structure can be further improved to better align with the interest of investors by being less operationally and commercially focused. Since 2022, all employees based in the Netherlands also have the option to participate in a company share plan, which is conducive for employee retention. All strategies here are managed with a team approach, mitigating key-person risk.
Areas of excellence and growth
While there is overlap in the firms’ expertise—for instance credit and sustainability -there are also notable differences. Centres of excellence for Van Lanschot Kempen has been property and high dividend investing, euro credits, high-yield credits as well as smallcap equities. In comparison to Robeco, the firm’s large dividend and smallcap franchise stand out, areas where Robeco does not have a focus.
Unfortunately, this is where the firm had to rebuild following team lift outs and reshuffles. That being so, we appreciate that the firm continues to nurture these core strategies which are supportive of its strong product line-up. The firm continues to be a strong proponent of active management. Where they have branched out, the focus is on sustainability versions of existing strategies which is not a heavy lift. The firm is working at improving sustainability integration across the full fund line-up which is positive.
Van Lanschot Kempen is still strategically growing their presence outside of the Netherlands in markets such as the UK, France, Switzerland, Germany and the Nordics. That being so, the bulk of assets are still held by Dutch investors leading to a less diversified client base. In contrast, Robeco’s asset base is more diversified globally with meaningful franchises in the United States and Asia. While they also continue to grow their client base in Europe, the United Kingdom, United States and Asia-Pacific region are further growth areas.
At Robeco, fixed income credits, thematic and quantitative equities and the firm’s robust sustainability capabilities, are key differentiators. The firm has stayed within its wheelhouse of expertise with new launches. Overall, strategies lean mostly into areas where they have an edge and have a proven track record—sustainability, thematic and quantitative investing. The firm has also added emerging-markets debt funds to its range in 2024, a further step to offer investors a full suite of products covering all asset classes.
Unique features and endeavours
Van Lanschot Kempen share economies of scale with investors and have, in the past, lowered fees for Dutch-domiciled funds. Robeco ventured into exchange-traded funds (ETFs) with the first products launched in the fourth quarter of 2024. Smartly, these strategies lean on the firm’s proven expertise in fundamental and quantitative equities.
Exhibit 1 compares the Morningstar Medalist Ratings of Robeco and Van Lanschot Kempen. This universe includes all funds and share classes with a Morningstar Medalist rating, (whether they are algorithmically driven or analyst-rated).
Elbie Louw, CFA, CIPM, is senior analyst, manager research at Morningstar Benelux. Morningstar is a member of Investment Officer’s panel of experts.