Subscriptions to the Robeco Multi Market Bond Dec 03/11 totalled EUR 350 million. The majority of the bond was placed with private individuals in the Benelux and Asia, whereas also a number of institutional investors invested in the bond. Robeco Alternative Investments, the unit of Robeco that is responsible for the structuring and distribution of the bond, has placed the issue in close co-operation with approximately 50 distribution partners in the Benelux and Asia. With EUR 350 million raised, this issue surpasses its predecessor, Robeco Multi Market Bond Jul 03/13 that was issued earlier this year and raised EUR 290 million.
The success of both issues underscores the tremendous appetite in the market for so-called alternative investment products, or investment products whose returns show low correlation with that of the more traditional stock- and bond markets.
It is expected that Robeco Alternative Investments will issue another Multi Market Bond early in 2004.
About the Bond
Robeco Multi Market Bond is a innovative and unique investment product that offers investors the opportunity to participate in various markets in a systematic and consistent manner. The underlying investments are well diversified over various markets and asset classes. These include not only equities and bonds, but also currencies, commodities, base and precious metals, agricultural and energy products, through the use of various financial instruments such as futures and forward contracts. This well-diversified portfolio offers risk diversification and a low correlation with equity and bond markets.
The structure of the Robeco Multi Market Bond ensures a minimum redemption of 100% at maturity, a good expected return and an annual coupon of at least 1.2%. The annualized return, comprising annual coupon payments and the expected appreciation at maturity, is projected to be approximately 13.4%[1]. The bonds are issued under a Rabobank medium term note program.
For more information, go to http://www.robeco.com/alternatives and click on 'Structured finance'.
About Robeco
Robeco provides discretionary asset management products and services, as well as a complete range of mutual funds to a large number of institutional and retail clients worldwide. Robeco's product range encompasses fixed-income and equity investments, as well as balanced accounts, money-market funds and alternative investments.
Robeco distributes its funds for the retail market directly, and through other financial institutions. Several of its mutual funds, including the flagship Robeco N.V., are listed on major European stock exchanges such as Amsterdam, Paris, Frankfurt and London.
As well as from its head office in Rotterdam, Robeco services its clients from its European offices in Belgium, France, Luxembourg, Switzerland, Germany and Spain. In the United States, Robeco has offices in New York, Chicago and San Francisco (Weiss, Peck & Greer), Boston (Boston Partners), White Plains (Sage Capital Management) and Toledo (Harbor Capital Advisors).
Robeco is the center for asset management with full operational independence within the Rabobank Group. The combination of the highest credit ratings from the major international rating agencies and the highest Sustainability Cluster Score within the banking sector reflects the high added value Rabobank has always offered its investors, members, clients and employees.
[1] Historical results are no guarantee whatsoever for future results.