RORENTO N.V.
SEMIANNUAL REPORT JUNE 2006
% ROBECO
CONTENTS
General information
Report of the management board
Financial statements
Balance sheet
Profit and loss account
Cash-flow summary
Notes
Other data
Spread of net assets
GENERAL INFORMATION
RORENTO N.V. [1]
(public limited liability company with an open-end structure
established according to the laws of the Netherlands Antilles, having
its registered office in Philipsburg, St. Maarten, Netherlands
Antilles)
Ara Hill-Top, Unit A5
Pletterijweg Oost 1
Willemstad, Cura�ao
Information address for Rorento
Robeco Institutional Asset Management B.V.
Coolsingel 120
Postbus 973
NL - 3000 AZ Rotterdam
Telephone +31- 10 - -224 12 24
Fax +31 - 10 - 411 52 88
Internet: www.robeco.com
Supervisory Board
Paulus C. van den Hoek, chairman
Gilles Izeboud
Philip Lambert
Dirk P.M. Verbeek
Management Board
Edith J. Siermann
Frank L.E.G. Boll
Ferdie L.I. van de Walle
Fund manager
Edith J. Siermann
PROSPECTUS
A simplified prospectus with information on Rorento N.V. and its
associated costs and risks is available. This simplified prospectus
and the full prospectus are available at the company's offices and
via www.robeco.com.
This report is also published in Dutch, French and German. Only the
original Dutch edition is binding.
REPORT OF THE MANAGEMENT BOARD
GENERAL INTRODUCTION
More balanced growth
In the first half of 2006 strong and balanced economic growth was
recorded globally. The US and many emerging economies continued to
grow rapidly. Japan's recovery became more entrenched, while in the
euro zone growth was accelerating.
The strong economic recovery was one of the factors behind the
elevated level of prices for commodities like oil, leading to
inflationary pressures.
Although the underlying inflation in many countries has remained
well-contained, core inflation is creeping up in many countries.
This, in combination with strong growth, led to a worldwide
tightening of monetary policy. The US Federal Reserve Bank (Fed)
continued to raise interest rates by 25 basis points at every meeting
while the ECB followed its own hiking strategy of raising interest
rates by 25 basis points every quarter. The Bank of Japan stopped its
policy of flooding the banking system with liquidity and abandoned
its zero-interest-rate policy. Many other central banks around the
world joined the major central banks by tightening their policies.
Difficult environment for bond markets
Strong growth and global tightening of monetary policies created a
difficult environment for bond markets. Bond yields increased
strongly and the credit market was not immune to tighter monetary
conditions either, so that spreads widened, driven by fears that the
Fed would overdo its tightening.
Outlook
The environment for bonds will probably remain difficult for some
time to come. The ECB can be expected to further raise interest
rates. The Bank of Japan abandoned its zero-interest-rate policy. The
US economy appears to be close to a turning point. Still, further
tightening may be needed to keep inflation under control, which could
in turn lead to higher bond yields and weaker credit markets.
INVESTMENT RESULT
In the first six months of 2006, Rorento's share price dropped from
EUR 42.87 to EUR 41.49, an investment result of -3.2%. Based on net
asset value, which rose from EUR 43.10 to EUR 41.72, the investment
result was -3.4%.
The fund's benchmark, the Lehman Multiverse Index, 50% hedged into
euros, fell 3.6% over the same period.
INVESTMENT POLICY
In the first six months of 2006 the portfolio anticipated rising
interest rates worldwide, prompted in large part by the results of
Robeco's duration model. As a result of qualitative factors, this
positioning was increased from February through May. In May, when
risk premiums rose and high-risk investment categories came under
pressure, this qualitative position was halved. Capital-market rates
in the euro zone increased from approximately 3.3% to some 4.1%
during the reporting period. US capital-market rates rose from 4.4%
to approximately 5.2%, while in Japan rates increased from 1.5% to
1.9%. Given the positioning, this had a positive effect on the
portfolio's relative performance.
The portfolio also anticipated a further flattening of the euro-zone
yield curve with the idea being that short-dated bonds would remain
under pressure as a result of the ECB's tightening cycle. This
position was closed in May.
Towards the end of the reporting period, the fund switched out of
euro-zone bonds and into US Treasuries because the Fed had already
increased the money-market rate by more than 400 basis points and the
US is further ahead in the economic cycle than the euro zone.
Expectations were for the spread between the two blocks, which had
widened substantially in 2005, to narrow again.
At the beginning of the year, a new country-allocation strategy was
added, based on a quantitative model. Each month, a selection is made
of countries, where the underlying spread is expected to narrow. The
currency risk is hedged into euros. This strategy proved successful
over the reporting period.
In the second quarter a position was also taken to take advantage of
a steepening of the Japanese yield curve. In the reporting period
this had a slightly negative effect on the fund's relative
performance. In addition, the fund took a position in the Hungarian
bond market at the beginning of the year. Finally, in the second
quarter, the response to the convergence of Sweden's short-term rates
with those of the euro zone was successful.
Asset allocation
Credit derivatives were used on a number of occasions to take
advantage of differences in the relative valuations of investment
categories. At the beginning of January an overweight position was
taken in emerging debt offset by an underweight position in the US
high-yield market. Later the portfolio was positioned for a
contraction in the valuation differentials between bonds issued by
European companies with high-yield status and European companies with
investment-grade status. Both decisions had a positive effect on
relative performance.
The fund also started building a position in asset-backed securities.
These are loans which have a diversified basket of mortgages, for
instance, as their underlying value. This investment category has an
attractive risk/return profile and can be considered as a good
alternative for government bonds, for example.
Currency policy
The US dollar weakened against most other currencies in the first few
months of the year. The US currency fell from USD 1.18 against the
euro at the beginning of the year to USD 1.29 in May. This was
followed by a slight recovery to USD 1.26, mainly as a result of
unrest in stock markets worldwide. Until April the fund was geared
towards a stronger dollar and yen relative to the other currencies,
then in the second quarter the fund underweighed the dollar against
the yen and the euro. On balance, the currency policy had a negative
effect on the fund's performance relative to that of the benchmark.
In terms of absolute returns the benchmark lost 1.6% as a result of
partial hedging into the euro.
Credit policy
The corporate-bond market was volatile in the first six months of
2006. On average, excess returns on corporate bonds over government
bonds remained stable early in the year. However, over the reporting
period risk premiums increased in various capital markets, including
the credit market. This had the greatest impact on higher-risk names.
The fund's credit-market risk exposure was mainly defensive during
the reporting period. This was due in large part to the newly
introduced credit-beta model, which gave a negative signal. On
balance, this position turned out to be favorable. Issuer selection
was however less opportune. On the whole, the credit policy's
contribution to performance was neutral.
Performance
During the period under review, the fund manager's active investment
policy led to an outperformance of 0.56% (before deduction of the
management fee) relative to the benchmark. Of this 0.56%, 0.76% was
attributable to the duration policy, 0.18% to the asset-allocation
policy, 0.05% to the country policy, -0.20% to the yield-curve
policy, 0.08% to the money-market policy, -0.07% to the credit policy
and -0.24% to the currency policy.
NEW BENCHMARK ADOPTED
As of 1 July 2006, Rorento's benchmark has changed. The old benchmark
was the Lehman Multiverse Index, 50% hedged into euros. The new
Rorento benchmark is the Lehman Multiverse Index hedged into euros.
The full hedging into euros will reduce the fund's risk profile for
investors in the euro zone. Rorento's investment policy remains
unchanged and the fund continues to respond actively to currency
movements.
Philipsburg, 9 August 2006
The management board
Edith J. Siermann
Frank L.E.G. Boll
Ferdie L.I. van de Walle
BALANCE SHEET
EUR x thousand
30/06/2006 31/12/2005
Investments
Financial investments
Bonds and other fixed-income securities (1) 2,492,597 2,833,171
Investments in Robeco Group mutual funds (2) 218,064 214,515
Derivatives (6) 19,209 21,497
Deposits - 14,622
Other financial investments (3) 70,994 33,487
_________ _________
Total investments 2,800,864 3,117,292
Accounts receivable 87,595 58,039
Other assets
Cash 49,173 132,234
Accounts payable
Obligations arising from derivative (6) 15,429 2,070
instruments
Other accounts payable 93,196 234,823
_________ _________
108,625 236,893
Accounts receivable and other assets less
accounts payable 28,143 -46,620
_________ _________
Shareholders' equity 2,829,007 3,070,672
Composition of shareholders' equity (4)
Issued capital (5) 203,887 213,755
Other reserves 2,727,838 2,633,869
Net result -102,718 223,048
_________ _________
2,829,007 3,070,672
PROFIT AND LOSS ACCOUNT
EUR x thousand
01/01- 01/01-
30/06/2006 30/06/2005
Investment income 59,461 67,568
Changes in value -150,621 131,673
_________ _________
-91,160 199,241
Costs (7)
Management costs (8) 10,310 10,729
Service fee (8) 983 1,019
Other costs (9) 265 233
_________ _________
11,558 11,981
_________ _________
Net result -102,718 187,260
The numbers of the items in the financial statements refer to the
numbers in the Notes.
CASH-FLOW SUMMARY
indirect method, EUR x thousand
01/01- 01/01-
30/06/2006 30/06/2005
Cash flow from investment activities 8,878 187,596
Cash flow from financing activities -136,401 -209,363
_________ _________
Net cash flow -127,523 -21,767
Currency and cash revaluation -444 -14,811
_________ _________
Increase(+)/decrease(-) cash* -127,967 -36,578
* Cash and accounts payable to credit institutions
NOTES
General
Rorento (hereafter also referred to as 'the fund') is an investment
institution registered in the Netherlands Antilles and as such is not
subject to Dutch corporate-income tax. It is only liable to pay a
minor sum in Netherlands Antilles profits tax. The financial
statements are in euros and are drawn up in accordance with
regulations prevailing in the Netherlands. The fund holds a license
in accordance with article 11, section a, of the National Ordinance
on the Supervision of Investment Institutions and Administrators
['Ltba', Landsverordening Toezicht op Beleggingsinstellingen en
Administrateurs]. The fund also holds a license from the AFM [the
Dutch Authority for the Financial Markets] under the Dutch Investment
Institutions Supervision Act ['Wtb', Wet toezicht
beleggingsinstellingen].
Models
The semiannual report has been drawn up in conformity with the models
provided by Dutch legislature for annual financial statements, taking
into account the regulations that apply to semiannual reports. In
certain areas, descriptions have been used which better express the
nature of the items and relate better to the characteristics of an
investment company.
Open-end fund
Rorento N.V. is an open-end investment company, meaning that, barring
exceptional circumstances, Rorento N.V. issues and repurchases its
shares on a daily basis at prices approximating net asset value. A
fixed spread between the bid and offer price applies to cover costs
related to issuance and repurchase of own shares. The issue price
will not be more than 0.5% higher than the net asset value and the
repurchase price will not be more than 0.5% lower than the net asset
value. The abovementioned margin between the net asset value and the
bid and offer prices, and the associated costs, are for the account
and risk of Robeco Investment Consulting B.V., as a result of which
Rorento N.V. issues and repurchases its shares at net asset value.
Robeco Investment Consulting B.V. will distribute any positive
results to the funds, in proportion to each fund's positive
contribution to the spread result. A buffer is maintained to cover
any future losses.
Non-certificated participation in the Netherlands
Parties with which shares may be held in non-certificated form
include Robeco Direct N.V. in the Robeco Group Accounts System or the
affiliated branches of Rabobank in the Rabo Securities Account.
Participants pay costs on the sum deposited for each purchase, and in
the event of a sale a percentage of the sum withdrawn. These
participation costs are currently a maximum of 0.4% via Robeco Direct
and a maximum of 0.5% via Rabobank, depending on the channel
selected. These sums will accrue to Robeco Direct and Rabobank
respectively.
Outsourcing core tasks
The administration has been outsourced to Robeco Institutional Asset
Management B.V., a 100% subsidiary of Robeco Groep N.V. Agreements
have been made with the aforementioned party relating to the
provision of information and performance standards.
accounting principles
General
The accounting principles for the valuation of assets and liabilities
and determination of the result are unchanged, and as such are in
accordance with the annual financial statements. Amounts are
expressed in thousands of euros.
Affiliated parties
Rorento N.V. is affiliated to the entities belonging to Robeco Groep
N.V. The affiliation with Robeco Groep N.V. is the result of the
possibility of having decisive control or a substantial influence on
the fund's business policy. Robeco Groep N.V. belongs to the Rabobank
Group. The management structure of Robeco Groep N.V., in which
significant authority is allocated to its independent supervisory
board, is such that Rabobank does not have a meaningful say in or
influence on the fund's business policy. Robeco Groep N.V. pursues an
independent investment policy on behalf of its affiliated investment
companies, taking into account the interests of the investors
involved. Besides services of other market parties, Rorento N.V. also
uses the services of one or more of these affiliated entities
including transactions relating to securities, treasury, derivatives,
custody, securities lending, and sale and purchase of its own shares,
fund-administration services, as well as management activities.
Transactions are executed at market rates.
FINANCIAL INSTRUMENTS
Risks
Transactions in financial instruments may lead to the fund being
subject to the risks described below or to the fund transferring
these risks to another party.
Price risks
Currency risk is the risk that the value of a financial instrument
will fluctuate as a result of changes in exchange rates.
Interest-rate risk is the risk that the value of a financial
instrument will fluctuate as a result of changes in market rates. The
value of investments in fixed-income securities depends directly on
market rates. Duration is used as the measure for the portfolio's
sensitivity to interest-rate movements. The portfolio's sensitivity
to fluctuations in market rates can be influenced by changing the
portfolio's duration. Further information on the duration policy can
be found in the report of the management board. Market risk is the
risk that the value of a financial instrument will fluctuate as a
result of changes in market prices, caused by factors that
exclusively apply to the individual instrument or its issuer or
caused by factors that affect all instruments traded in the market.
The fund minimizes risks by diversifying over countries, currencies
and issuers. Investments are made primarily in bonds issued or
guaranteed by OECD member countries and by companies based in these
countries. The fund pursues an active currency policy. Rorento
invests a limited part of its assets in paper qualified as high yield
by rating agencies.
Credit risk
Credit risk is the risk that the counterparty of a financial
instrument will no longer meet its obligations, as a result of which
the fund will suffer a financial loss. The fund minimizes this risk
by trading exclusively with reputable counterparties with a rating of
at least P1 from Moody's or A from Standard & Poor's. Wherever it is
customary in the market, the fund will demand and obtain collateral.
Liquidity risk
Liquidity risk is the risk that the fund is not able to obtain the
financial means required to meet the obligations arising from
financial instruments. The fund minimizes this risk by mainly
investing in financial instruments that are tradable on a daily
basis.
Insight into actual risks
The Report of the management board, the Balance sheet, the Notes to
the balance sheet and the Spread of net assets, which includes the
geographic distribution of the investments and the net currency
position, give an insight into the actual risks at balance-sheet
date.
Risk management
Managing risk is a part of the investment process as a whole and with
the help of advanced systems, the risks outlined above are limited,
measured and monitored on the basis of fixed risk measures.
Policy regarding the use of derivative instruments
Investing implies that positions are taken. As it is possible to use
various instruments, including derivative instruments, to construct
an identical position, the selection of derivatives is subordinate to
the positioning of a portfolio. In our published information,
attention is given primarily to the overall position, and secondarily
to the nature and volume of the financial instruments employed.
Derivatives
The market value of derivatives is reported in the Balance sheet. The
presentation of the market value is based on the liabilities and
receivables per counterparty. The receivables are reported under
Financial investments and the liabilities are reported under Accounts
payable. The value of the derivatives' underlying instruments is not
included in the Balance sheet. If applicable, they are explained
under the heading Commitments not shown in the balance sheet.
NOTES TO THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
1 Bonds
At balance-sheet date, bonds to the amount of EUR 935 million (EUR
502 million at the end of last year) had been lent. To cover the risk
of non-restitution, adequate collateral with a value of EUR 982
million (EUR 533 million at the end of last year) was demanded and
obtained; this collateral is not included in the Balance sheet. The
geographic distribution and the currency position of the bond
portfolio are included in the overview of the Spread of net assets
which can be found at the end of this report.
2 Investments in Robeco Group mutual funds
A list of these investments is given below.
+----------------------------------------------------------------------------------------------------------------------+
|INVESTMENTS IN ROBECO GROUP MUTUAL FUNDS |
|----------------------------------------------------------------------------------------------------------------------|
| | | | | | |
|----------------+---------------------------------+-------------------------------------------------------------------|
| | Market value| Interest in| Net asset value 1)| Return| Total expense|
| | | fund| | | ratio|
| | | | | | 2)|
|----------------+-------------------+-------------+---------------------+---------------------------+-----------------|
| | EUR x thousand| in %| EUR x 1| in %| in %|
|----------------+-------------------+-------------+---------------------+---------------------------+-----------------|
| | 30/06| 31/12| 30/06| 31/12| 30/06| 31/12| 01/01-30/06| 01/01-30/06| 01/01-| 01/01-|
| | 2006| 2005| 2006| 2005| 2006| 2005| 2006| 2005| 30/06 | 30/06|
| | | | | | | | | | 2006| 2005|
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
| | | | | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
|Robeco Capital | | | | | | | | | | |
|Growth Funds - | 94,667| 93,605| 65.4| 78.9| 101.13| 99.59| 1.5| -| 0.28| -|
|Robeco High | | | | | | | | | | |
|Yield Bonds | | | | | | | | | | |
|(EUR) I shares | | | | | | | | | | |
|3) 5) | | | | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
|Robeco Interest | | | | | | | | | | |
|Plus Funds - | 51,560| 50,220| 36.8| 85.5| 103.04| 100.51| 2.5| -| 0.17| -|
|Robeco | | | | | | | | | | |
|Flex-o-Rente | | | | | | | | | | |
|(EUR) I shares | | | | | | | | | | |
|3) 6) | | | | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
|Robeco Monetaire| 41,291| 40,609| 27.9| 36.7| 3,068.85| 3,018.17| 1.7| -| 0.15| -|
|Quantiplus 4) | | | | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
|Robeco Capital | | | | | | | | | | |
|Growth Funds - | 30,546| 30,081| 95.3| 96.8| 102.15| 100.19| 2.0| -| 0.29| -|
|Robeco European | | | | | | | | | | |
|High Yield Bonds| | | | | | | | | | |
|(EUR) I shares | | | | | | | | | | |
|3) 6) | | | | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
| | _____| _____| | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
| | 218,064| 214,515| | | | | | | | |
|----------------+---------+---------+------+------+----------+----------+-------------+-------------+---------+-------|
| | | | | | | | | | | |
|----------------------------------------------------------------------------------------------------------------------|
|1) Per share. |
|----------------------------------------------------------------------------------------------------------------------|
|2) Regarding management costs, agreements have been made with the manager of the fund concerned for the restitution of|
|management costs to Rorento N.V. |
|----------------------------------------------------------------------------------------------------------------------|
|3) This Luxembourg-based fund with a UCITS III status is regulated by the Luxembourg authorities. Robeco Luxembourg|
|S.A. |
|is the manager of the fund. The annual report for the period ending on 30 June 2006 will be available at Rorento's |
|offices on request after publication. |
|----------------------------------------------------------------------------------------------------------------------|
|4) This fund has a UCITS III status and is regulated by the French authorities. The semiannual report as of 31 March|
|2006 |
|of this fund is available at Rorento's offices on request. |
|----------------------------------------------------------------------------------------------------------------------|
|5) Introduced on 1 September 2005. |
|----------------------------------------------------------------------------------------------------------------------|
|6) Introduced on 3 October 2005. |
+----------------------------------------------------------------------------------------------------------------------+
Rorento N.V. can enter and exit the mentioned Robeco Group funds on a
daily basis at net asset value. These funds do not charge an entry or
exit fee.
3 Other financial investments
Includes call money, certificates of deposit and commercial paper.
4 Shareholders' equity
COMPOSITION AND DEVELOPMENT OF SHAREHOLDERS' EQUITY
EUR x thousand
01/01- 01/01-
30/06/2006 30/06/2005
Issued capital
Situation at opening date 213,755 233,213
Received on shares issued 6,345 6,744
Paid for shares repurchased -16,213 -21,904
_______ _______
Situation at closing date 203,887 218,053
Other reserves
Situation at opening date 2,633,869 2,786,675
Received on shares issued 83,426 86,383
Paid for shares repurchased -212,474 -280,102
Supervisory directors' fee -31 -35
Net result from previous financial year 223,048 97,628
_______ _______
Situation at closing date 2,727,838 2,690,549
Net result -102,718 187,260
_______ _______
Shareholders' equity 2,829,007 3,095,862
The company's authorized share capital amounts to EUR 900 million,
divided into 300,000,000 ordinary shares with a nominal value of EUR
3 each. As of 30 June 2006 the number of shares outstanding was
67,962,241. Net asset value per share amounted to EUR 41.63.
5 Shares outstanding
DEVELOPMENT OF NUMBER OF SHARES OUTSTANDING
01/01- 01/01-
30/06/2006 30/06/2005
Situation at opening date 71,251,513 77,737,554
Shares issued in financial year 2,115,167 2,248,231
Shares repurchased in financial year 5,404,439 7,301,330
__________ __________
Situation at closing date 67,962,241 72,684,455
6 Commitments not shown in the balance sheet
Forward exchange transactions
Forward exchange transactions current at balance sheet date concern
purchases of DKK 77 million, EUR 1,282 million and KRW 25,588 million
against sales of AUD 6 million, CAD 57 million, CHF 0.3 million, GBP
102 million, JPY 9,869 million, SEK 54 million and USD 1,344 million.
The effect of these transactions on the currency position is shown in
the survey Spread of net assets at the end of this report.
Futures
Futures contracts purchased as at closing date represent an increase
in assets invested of CAD 4 million and GBP 1,944 million; futures
contracts sold represent a decrease in assets invested of EUR 411
million, JPY 13,034 million and USD 3,325 million.
Credit-default swaps
Credit-default swap contracts current at closing date represent a
value of EUR 5 million and USD 8 million; credit-default swap
contracts sold represent a value of EUR 192 million and USD 214
million.
Interest-rate swaps
Interest-rate swaps contracts current at closing date represent a
value of CAD 329 million, EUR 557 million, GBP 11 million, JPY
157,800 million, SEK 5,403 million and USD 253 million.
Mortgage-backed securities (TBAs)
Forward purchases of mortgage-backed TBA securities current at
closing date represent a sum of USD 467 million.
Unrealized results of these transactions at closing date are included
in the Profit and loss account.
COSTS
7 Total expense ratio
TOTAL EXPENSE RATIO
01/01- 01/01-
30/06/2006 30/06/2005
in % in %
Cost item
Management costs 0.35 0.35
Service fee 0.03 0.03
Other costs 0.01 0.01
_______ _______
Total 0.39 0.39
The total expense ratio expresses the costs charged to the fund
during the reporting period as a percentage of the average assets
entrusted during the reporting period. The total expense ratio as
shown does not include transaction costs. The total expense ratio was
0.39% during the reporting period. The management costs relate to all
of the fund's current costs, which include the fees paid for
registering shareholders and all costs resulting from the management
of the fund, with the exception of costs relating to investments and
taxes. The service fee covers the administration, the costs of the
external auditor, other external advisers, regulators, costs relating
to reports required by law, such as the annual and semiannual
reports, and the costs relating to the meetings of shareholders. The
total expense ratio takes into account the costs of intra-group
investments, as presented in the table on page 7. As the management
costs are restituted to Rorento, these costs are not material and are
therefore not included in the table below. Other costs relate to bank
charges and the custody fee charged by third parties for the custody
of the fund's securities portfolio. The custody fee is EUR 181
thousand.
8 Management costs and service fee
Management costs relate exclusively to the management fee of 0.70%
per year. The service fee amounts to 0.08% per year and covers formal
and operational costs. For assets exceeding EUR 1 billion the service
fee is 0.06%; for assets exceeding EUR 5 billion the service fee is
0.04%. The management fee and service fee are charged by Robeco
Institutional Asset Management B.V. and are calculated on a daily
basis, based on the average assets entrusted. Wherever in this report
mention is made of the average assets entrusted this is also
calculated on a daily basis, unless stated otherwise.
9 Other costs
This includes custody costs and bank charges.
10 Performance fee
Rorento N.V. is not subject to a performance fee.
11 Transaction costs
Brokerage costs and exchange fees relating to investment transactions
are discounted in the cost price or the sales value of the investment
transactions. Brokerage costs for the purchase and sale of bonds are
included in the share price and cannot be quantified separately.
These costs and fees are charged to the result ensuing from changes
in value. The quantifiable transaction costs are shown in the table
on page 9. The transaction volume of the quantifiable transaction
costs is 1.2% (over the period 1 January through 30 June 2005 this
was 0.7%) of the total transaction volume.
TRANSACTION COSTS
EUR x thousand
01/01- 01/01-
30/06/2006 30/06/2005
Transaction type
Bonds - 10
Futures 302 211
12 Hard commissions and soft-dollar arrangements
There were no hard commissions or soft-dollar arrangements during the
reporting period.
13 Turnover ratio
This shows the turnover of the investments against the average assets
entrusted and is a measure of the incurred transaction costs
resulting from the portfolio policy pursued and the ensuing
investment transactions. In the calculation method used, the amount
of the turnover is determined by the sum of the purchases and sales
of investments less the sum of issuance and repurchase of own shares.
The turnover ratio is corrected for repo transactions, which are not
part of the portfolio policy but generate extra return on the
portfolio.The turnover ratio is determined by expressing the amount
of turnover as a percentage of the average assets entrusted. The
turnover ratio over the reporting period was 69% (over the period 1
January through 30 June 2005 this was 159%). Holding certain
positions for a longer period of time and less movements within the
credit part of the portfolio were the main reasons for the decline.
14 Transactions with affiliated parties
Part of the transaction volume over the reporting period relates to
transactions with affiliated parties. The table below shows the
various types of transactions where this was the case.
TRANSACTIONS WITH AFFILIATED PARTIES
Part of the total volume in %
01/01- 01/01-
30/06/2006 30/06/2005
Transaction type
Bonds 0.5 33.8
Call money 98.9 100.0
Forward exchange transactions 3.3 4.6
Deposits - 2.3
15 Securities lending
Robeco Securities Lending B.V. is the intermediary for all Rorento
N.V.'s securities-lending transactions. As compensation for its
services Robeco Securities Lending B.V. receives a fee of 40% of the
gross return on these securities-lending transactions. An external
agency periodically assesses whether the agreements between the fund
and Robeco Securities Lending are still in line with the market. The
return for the fund over the reporting period was EUR 328 thousand
(EUR 179 thousand in the period 1 January through 30 June 2005) and
for Robeco Securities Lending EUR 219 thousand (EUR 120 thousand in
the period 1 January through 30 June 2005).
Philipsburg, 9 August 2006
The management board
OTHER DATA
STOCK-EXCHANGE LISTING
The ordinary shares of Rorento N.V. are listed on Eurolist of
Euronext Amsterdam N.V. In addition, Rorento N.V. has a
stock-exchange quotation in Paris, Brussels, Luxembourg, London,
Berlin, Dusseldorf, Frankfurt, Hamburg, Munich, Vienna and Zurich.
DIRECTORS' INTERESTS
Statement pursuant to article 48, paragraph 1, section d, of the
Dutch Investment Institutions Supervision Decree ['Btb', Besluit
toezicht beleggingsinstellingen]. On 1 January 2006 and 30 June 2006
the directors of the investment company held the following total
personal interests in investments of the investment company.
DIRECTORS' INTERESTS
+-------------------------------------------------------------------------------+
| |Description |Supervisory-board |Management-board |Total |
| | |Value in EUR |Value in EUR |quantity |
| | | | |Value in |
| | | | |EUR |
|------------------+-------------+------------------+-----------------+---------|
| | | | | |
|------------------+-------------+------------------+-----------------+---------|
|As of 1 January | | | | |
|2006 | | | | |
|------------------+-------------+------------------+-----------------+---------|
|Robeco |Board members|2 |11 |11 |
|Flex-o-rente | | | | |
|------------------+-------------+------------------+-----------------+---------|
|5,5% Belgische |bonds | |1,800,787 |1,800,787|
|overheid | | | | |
|28-03-2028 | | | | |
|------------------+-------------+------------------+-----------------+---------|
|6% Nederland |bonds |45,379 |- |63,531 |
|15-01-2006 | | | | |
|------------------+-------------+------------------+-----------------+---------|
|6,25% ING Groep |equities |5,808 |- |5.8081 |
|21-06-2021 | | | | |
|------------------+-------------+------------------+-----------------+---------|
|As of 30 June 2006| | | | |
|------------------+-------------+------------------+-----------------+---------|
|Robeco |Board members| |11 |11 |
|Flex-o-rente | | | | |
|------------------+-------------+------------------+-----------------+---------|
|5,5% Belgische |bonds | |1,836,787 |1,836,787|
|overheid | | | | |
|28-03-2028 | | | | |
|------------------+-------------+------------------+-----------------+---------|
| | | | | |
|------------------+-------------+------------------+-----------------+---------|
|1 Number | | | | |
+-------------------------------------------------------------------------------+
AUDITORS
No external audit has been conducted.
SPREAD OF NET ASSETS
Across countries Across currencies
30/06/2006 30/06/2006 31/12/2005 30/06/2006 30/06/2005
EUR x in % in % in % in %
thousand
Long-term
investments
North America
(33.3%)
US dollar 902,997 31.9 35.8 -3.2 27.1
Canadian 39,019 1.4 1.4 - 1.1
dollar
Europe (57.6%)
Euro 1,475,574 52.1 53.6 100.6 62.1
British pound 147,362 5.2 4.6 - 1.1
Swedish krona 8,512 0.3 0.3 - 0.3
Danish krone - - - 0.4 0.4
Hungarian - - - 0.1 -
forint
Swiss franc - - - - -1.4
Asia (4.9%)
Japanese yen 137,197 4.9 3.6 1.4 8.4
Korean won - - - 0.7 0.7
Australia (0%)
Australian - - - - 0.2
dollar
Short-term 118,346 4.2 0.7 - -
investments
(4.2%)
________ ________ ________ ________ ________
Total 2,829,007 100.0 100.0 100.0 100.0
[1] Robeco (Schweiz) AG, Uraniastrasse 12, CH-8001 Zurich, is the
fund's appointed representative in Switzerland. Copies
of the prospectus, simplified prospectus, Articles of Association,
annual and semiannual reports and a list of all
purchases and sales in the fund's securities portfolio during the
reporting period are available from the above address
free of charge. UBS AG, Bahnhofstrasse 45, CH-8098 Zurich, is the
fund's paying agent in Switzerland.
- ---END OF MESSAGE---
Copyright � Hugin ASA 2006. All rights reserved.
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