Strategic partnerships are not only a trend for pension funds and fiduciary managers, said Robeco CEO Karin van Baardwijk. “Private banks are looking for larger allocations per asset manager. That creates opportunities to get more out of the relationship. However, it also means that there are fewer fund houses on the shelf.”
“I’d like to welcome you ‘to us,’ but of course, I’m a guest here myself.” The interview with Karin van Baardwijk took place at ASR in Utrecht, where she was attending an event related to her October win of the “Top Woman of the Year” title.
She was awarded the title for staying true to herself throughout her career, according to the jury. “I believe you make an impact when you are at your strongest. And you are at your strongest when you can be your authentic self,” Van Baardwijk explained. “I am incredibly results-driven, so I take great satisfaction when everything we invest in contributes to our business results. That includes both the hard aspects and the softer ones.”
In the discussion with Van Baardwijk, both aspects are addressed. The conversation touches on the profitability of the international fund house headquartered in Rotterdam, as well as the introduction of a leadership programme within a traditional asset management organisation.
And, naturally, strategic partnerships. “Many financial institutions are seeking strategic partnerships with a select group of partners,” said Van Baardwijk. “I think the rationale behind it isn’t so much about cost reduction or working with fewer asset managers, but rather about how to derive more value from the relationship. We combine the client’s knowledge and expertise with our investment skills, which results in solutions that deliver both returns and knowledge development.”
In 2020, Rabobank announced a mandate structure, appointing umbrella fund manager BlackRock. Does the trend Van Baardwijk describes build on this? Van Baardwijk said the development goes further. Without naming specific examples, Robeco collaborates with, among others, a Dutch bank, another asset manager, and a European bank. This includes developing thematic products where the bank defines the themes, and Robeco handles the investments within them.
“Asset owners are consolidating. They are deciding what to do themselves and with which asset manager they want to collaborate for what they choose not to do in-house.”
“It doesn’t always have to be about an investment solution; other challenges often come up as well. It frequently starts with an RFP, and the conversation deepens over time: What do you need beyond that RFP? Oh, are you working on this? So are we—let’s collaborate.”
Van Baardwijk observed that clients are looking to work with fewer asset managers, preferring to select a few that complement each other based on profile and proposition. “Asset owners are consolidating. They are deciding what to do themselves and with which asset manager they want to collaborate for what they choose not to do in-house. Additionally, major banks and private banks seek efficiency and larger allocations per asset manager. That inevitably means there will be fewer asset managers on the shelf. If you’re no longer included, that hurts. So, it’s crucial to remain on that shelf.”
The CEO anticipates more of these strategic partnerships by 2025. The key, she said, is to understand what is relevant for the client and respond effectively. “That means the relationship is more intense, deeper, and perhaps also broader. Will we do something specific for this? I think it will evolve organically, based on mutual trust.”
Profitability
In her first interview as Robeco CEO three years ago, Van Baardwijk outlined her aim to improve profitability by 2025. In 2021, the operational margin reached its highest point in the company’s 95-year history: nearly 35 percent. However, by 2022, it had declined to just over 28 percent, and a year later, to 22 percent.
Although her goal was to increase profitability, it has decreased instead. Is this a concern? “The period you’re referring to has seen a great deal of change,” Van Baardwijk responded. “In 2021, thematic investment solutions performed incredibly well, which drove strong sales to private banks and wholesale channels. That led to historically high profitability for Robeco. After that, market conditions shifted, driven by factors like interest rates and inflation. This affected our clients and demand for thematic solutions, which impacted 2022 and 2023—not just for Robeco, but for other asset managers heavily invested in that area.”
Other European fund houses, such as Amundi and Allianz, report higher profitability. Asked why there is a gap, Van Baardwijk countered with a question: is this the right comparison? “Some European firms aren’t comparable because they also offer passive investments. Additionally, during the years in question, a lot of money moved into money market funds—a kind of holding pattern as clients waited to see what would happen. Robeco doesn’t offer money market funds or passive solutions. So we benefited less from trends in those areas during that period.”
At the same time, she noted, it’s not just about explaining the past but looking forward. “How do you ensure profitability in a sector where margins are under significant pressure? From 1 January to early December 2024, our assets under management grew by 18 percent. That has had a positive impact on profitability. Good news.”
New clients
One way to attract new clients and retain existing ones is through the launch of active ETFs in 2024—Robeco’s first products in this category. “It’s an interesting proposition for us because European wholesale clients are shifting from funds to mandates and ETFs,” said Van Baardwijk. “This shift is driven by regulations but also the convenience of ETFs, which align with the current zeitgeist, offering high liquidity, tradability, and speed. Funds’ operational onboarding complexities don’t apply to ETFs.”
“We are truly a 100 percent active house. So many large providers specialise in passive investing—that’s not our game.”
Robeco understands mandates, but if clients don’t opt for mandates, they might turn to competitors’ passive solutions. Van Baardwijk explained: “Offering active ETFs in wholesale channels is a way for Robeco to diversify within the wholesale segment compared to funds.” This increases the likelihood that clients remain within Robeco’s “ecosystem”.
New ETFs in equity and fixed-income segments will follow in 2025. These, too, will be active. Van Baardwijk, resolutely: “We are truly a 100 percent active house. I think there is strength in sticking to what you’re good at. So many large providers specialise in passive investing—that’s not our game.”
Investing in people
Turning to the “softer” aspects, which Van Baardwijk says are equally crucial to profitability: one of her projects as CEO three years ago was developing a leadership programme. With nearly 20 years of experience within the company, across various roles, she knew the organisation and processes inside out. “I know our strengths, but I also saw the importance of investing in collaboration, attitude, and behaviour.”
Together with IMD Professor Susan Goldsworthy, she designed a programme that launched in 2023 for senior managers and expanded to the rest of the staff the following year. It was a bold move, given that not everyone in the traditional asset management organisation embraced the idea immediately. “They find something interesting only once it has proven itself.”
“Once you’ve engaged people, the challenge is ensuring they want to stay for the long term. Competitive compensation matters, but so do many other aspects of employee engagement.”
Investing in people, Van Baardwijk stressed, is not done lightly. “It’s about truly investing in people. The belief is that this leads to better business outcomes, which in turn contribute to profitability and the company’s success.” She describes Robeco’s position as fortunate, with a relatively modest 200 billion euro in assets under management but a strong ability to attract talent globally. “Once you’ve engaged people, the challenge is ensuring they want to stay for the long term. Competitive compensation matters, but so do many other aspects of employee engagement.”
Through the leadership programme, Robeco sought to establish a shared language among its global talent and define “how things are done” at Robeco. It works, said Van Baardwijk, citing employee surveys. “Anything that enhances efficiency, reduces noise, and focuses on sustainable learning for employees is embraced. It’s been a tremendous talent magnet—not just in the Netherlands but internationally. It doesn’t eliminate all risks, but initiatives like this are as important as financial compensation.”