Personal Portfolio Orange 1

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1 QUARTERLY REPORT 9 December 07 ING (B) Collect Portfolio Personal Portfolio Orange NN Investment Partners ISIN CODES: BE (Capitalisation) - BE (Distribution) Market snapshot Equities: Eurozone and United States Equities: Japan and Emerging Markets MSCI EMU MSCI USA MSCI JAPAN MSCI EMERGING MARKETS 0 year interest rate Germany and US Spread high yield bonds Y interest rate German government bonds 0Y interest rate US government bonds Index high yield bonds Index government bonds overall Sub-fund of the Belgian Sicav ING (B) Collect Portfolio. Source: Datastream. The UCI is not bound to copy the composition of these indexes. /5

2 QUARTERLY REPORT 9 December 07 The markets Despite some concerns that had to be overcome, we came close to an ideal scenario in the last quarter of 07. In the past months, the world economy reached its best condition in over a decade. Business investments picked up because of the accelerated profit growth combined with the increased entrepreneurial and consumer confidence while emerging markets shared in the growth recovery of the developed markets. This is how a broad-based recovery of economic activity was created. Despite this strong economic momentum, the lack of inflation kept the central banks on a very gradual normalisation track. President Trump eliminated much uncertainty in the monetary sector with his appointment of Jerome Powell as the new chairman of the Federal Reserve. Powell has been on the board of the Fed since 0 and he has always voted in favour of policy decisions. Thus, he will most likely not break with the current policy of gradual interest increases. As expected, in December, the US Federal Reserve raised its base rate by 0.5% for the third time in 07. In October, the ECB announced that it will decrease its monthly bond buyouts from EUR 60 billion to EUR 0 billion starting from January 8 through September 8. Political uncertainty also declined in the last quarter of 07. Thanks to the convincing election victory of the Japanese premier Abe in October, his economic programme can be continued. Furthermore, the American government made good on its first election promise: a tax reduction of USD.4 trillion which will boost profits of American firms. In December, Great Britain and the European Union reached their first breakthrough in the Brexit talks. Now that there is sufficient clarity about the conditions for separation, the second phase of the Brexit negotiations concerning future trade relations can start-up. The regional parliamentary elections in Catalonia did not result in rapprochement between the Spanish government and the Catalan nationalists. The nationalist parties combined won a slight majority of the seats, but the division among the Catalan population remains quite substantial. The increased chance of an orderly Brexit, the hope of a pro-european government in Germany and the strong growth environment on the European mainland strengthened the euro. This resulted in the euro again breaking through the.0 limit versus the USD on the last day of 07. The euro gained.6% versus the USD during the 4th quarter of 07. Against this background, the stock markets had a strong showing in the fourth quarter (+4% in euro). Due to the strong euro, returns on foreign investments were slightly pressured in euro terms. At a regional level, Japan (+6.8%) and emerging markets (+5.8%) excelled and Europe remained behind (+0.7%). Information technology, the raw materials sector (mining and refining of metals, chemical producers and forestry products) and durable consumer goods were the strongest performing sectors with a gain of over 6%, while utility and health insurance companies were the only sectors that lost ground. Worldwide real estate shares gained approximately % over the past months. Euro government bonds rose 0.6% in value over the 4th quarter of 07 thanks to continuing low inflation numbers. Due to the strong performances over the past quarters and relatively high valuations, higher risk bonds lagged behind government bond yields. Mass market heavy goods (such as washing machines, refrigerators, furniture) intended to last three or more years. Strategy Economic figures continue to positively surprise. The favourable macro-environment is illustrated by a powerful growth in all regions and is supported by all the important economic actors (consumers, companies and governments). The chances of a recession in the next months appear to be minor. Despite the strong macro picture, not everyone is positive about the market prospects for high-risk investments. Some investors fear that the news is already largely priced-in, that the monetary policy will become a problem or that valuations are exaggerated. But the direction of the business cycle, corporate profits and capital flows continue to be positive for growth-oriented assets which makes this fear seem unfounded. The Personal Portfolio sub-funds began with a neutral position for stocks in October, but gradually expanded over the first half the quarter to an average overweighting. The price-earnings ratios for stocks may be high, but not extremely so when you take into account that global corporate profits are expected to grow again by a good 0% next year. Compared to fixed-interest instruments, the valuations of equities are in line with, or more attractive than, their historical averages. This particularly applies to the Euro zone and Japan. That is why the Personal Portfolio sub-funds increased the equity overweighting in these regions. The emerging markets also continue to be attractive, even though the sub-funds took some profits in light of the region s sensitivity for rising Fed interest rate expectations. We are more cautious about the US, despite the high valuations and due to fact that the economic cycle is further advanced here. Due to the weak USD and tax reforms, the sub funds are, however, scaling down the underweighting of American stocks somewhat. At a sectoral level, the sub-funds still prefer cyclical sectors. The overweighting in IT was also ceased, while the preference for the financial sector was maintained. They remain cautious for defensive sectors, above all for the food sector. Government bonds yields offer the least perspective. The sub-funds are at this time also clearly underweighted in this category. In the next months, the interest rate will sooner go up than go down. In 08, the Fed will further scale back its balance sheet and increase the interest rate at least three, and probably four times. Starting from January, the ECB will halve the monthly bond purchases from EUR 60 billion to 0 billion. Combined with the strong macro figures, it also seems advisable to reduce the duration of the portfolios even further. Due to increased uncertainty regarding the monetary policy, the limited liquidity, the high valuations and the declining momentum, the sub-funds have made the high-risk bond component more defensive. A new position in quality American corporate bonds was opened (thereby hedging the currency risk) because of the American tax reforms, while the position in Emerging Markets Debt was gradually reduced. High yield corporate bonds are still quite expensive. As a result, the primary emphasis currently lies on quality corporate bonds. In light of the positive fundamental background, the attractive dividend yield and the expectation of gradually rising yields on bonds, the sub-funds slightly increased the weighting of real estate shares in October, although the overweighting remains quite moderate, all in all. The currency weighting declined this past quarter since the sub-funds have employed more cash in stocks and real estate shares. Sectors wherein activities are sensitive to economic fluctuations and/or profitability is more susceptible to the usual fluctuations. Sectors wherein activities show a rather stable turnover or are on average, less susceptible to economic fluctuations. An emerging market is a market with a gross domestic product lower than that of a developed market. Emerging countries have appeared from developing countries. China, India and Indonesia, as well as countries in Latin America such as Brazil and Argentina, are regularly cited as belonging to this category. /5

3 QUARTERLY REPORT 9 December 07 Portfolio Evolution NAV (//0-9//07) * NAV dd //0 = Key figures Capitalisation Distribution NAV (9//07) Max. NAV months** Min. NAV months** Latest gross dividend 6.00 Currency Net assets (mio) EUR 08.0 **From 0//06-9// Actuarial performance * Launch Period year years 5 years 0 years 04/0/008 EUR 5.4% 5.8% 8.0% - 4.0% Calender year performance *.% 0.87%.8% 5% 0.5% 0% 5%.9% 0% 5.9% 6.08% 5.9% 5% 0% -5% -0% -6.0% * Past performance is not a reliable indicator of future performance and can be misleading. Performance takes account of fees and commissions, except for entry and exit fees and conversion charges. Performance is calculated in EUR on an annual basis. Performance is the performance of capitalisation shares (dividends reinvested). Source: NN Investment Partners Portfolio composition Region Style % Equities NN (L) Global Sustainable Equity Global Sector 6.89 ETF Vanguard S&P500 North America Index 5.0 ETF Amundi MSCI Emerging Markets Emerging Markets Index 0.58 ETF Lyxor MSCI Europe Europe Index 7.9 Euro Stoxx 50 Future Europe Index 5.5 S&P 500 index Future North America Index 5.5 ETF ishares Core S&P500 UCITS ETF-E North America Index 4.87 TOPIX index Future Asia Index 4.46 NN (L) Japan Equity Asia Value 4. ETF FirstTrust Eurozone AlphaDex - EUR Europe Index.4 ETF SPDR MSCI World Financials ETF-E.98 ETF ishares MSCI Pacific ex-japan Asia Index. FTSE 00 index Future Europe Index -.54 Bclear MSCI World Cons. Staples Global Sector -.0 Bonds + Cash NN (L) Euro Fixed Income Europe Aggregate 5.80 NN (L) Global Convertible Ops Global Aggregate.6 NN (L) First Class Yield Oppportunities Global Credits.5 Cash Account.50 DB x-trackers Eurozone Yield Plus Europe Government.7 NN (L) Euro Credit Europe Credits.64 ETF ishares USD Corp Bond EUR-H ETF North America Credits.49 US 0Y Treasuries Futures North America Government -.4 Canadian 0Y Bonds Futures Nordamerika Government -.7 (-) Futures Position -.76 Euro Bund Futures Europa Government -6.4 Real estate NN (L) Global Real Estate Global 6.95 Amundi World Real Estate Index Fund Global.9 MSCI World Real Estate Future Global Index.75 Asset allocation (in %) 0.40 Bonds Equities.6 Real estate Regional allocation (in %) 7.8 Europe.9 North America 0.77 Asia 0.66 Emerging markets 6.8 Global It is possible that certain UCIs included in this portfolio are not publicly offered in Belgium. Consult your financial adviser for more info. Source: NN Investment Partners /5

4 QUARTERLY REPORT 9 December 07 Outlook In the fourth quarter of 07, worldwide economic growth will likely be a solid.8%, and at the beginning of 08, the world economy may even show a slight growth acceleration. In the second half of 08 or possibly not until 09, the growth of the world economy could slow down somewhat due to the influence of the American economy which may suffer from the Fed s interest rate hikes or pressure on profit margins because of higher labour costs. Although the growth momentum in the emerging markets remains strong, growth prospects have diminished slightly. This is due to the less flexible financial conditions as result of the growing interest rate expectations of the Fed. Tighter financial conditions can ultimately influence credit growth and the prospects for domestic demand. However, it is still too early to actually worry about that now. In this context, the Personal Portfolio sub-funds remain positive about highrisk investments, especially cyclical securities sectors and regions. Real estate shares will also continue to be attractive, while they are now beginning to consider high-risk bonds too expensive. For government bond yields, they expect that the continued strong economy and dwindling support of the monetary policy will lead to a gradual upward pressure on interest rates. The Personal Portfolio sub-funds, however, are not the only ones who feel this way; investors are generally optimistic and have largely the same positions in their portfolios. This limits the scope of further price increases and may result in some volatility should they adapt their positioning. On the political front, the Italian elections on 4 March and the American elections in November seem to be the main challenges. These political factors by themselves are certainly capable of generating market volatility, but in the current benign economic environment it seems unlikely they will derail the market in any sustainable way. The greatest downward risk for the market lies in an unexpected sharp rise in inflation which would compel the central banks to push hard on the monetary brake. However, the odds that this will happen in the first few months of 08 seem low. However, this risk can gradually increase during the course of the year. Sectors wherein activities are sensitive to economic fluctuations and/or profitability is more susceptible to the usual fluctuations. Volatility refers to the extent of variations in the price of a financial asset. It serves as a quantitative indicator of the risk relating to the yield and price of the financial asset. If the volatility is high, the possibility of making a profit is greater, but so is the risk of making a loss. 4/5

5 QUARTERLY REPORT 9 December 07 Technical data Investment policy Personal Portfolio Orange is a fund of funds and invests primarily in a diversified portfolio of international equity, fixed income and money market funds. Other financial instruments can also be used to achieve the investment objectives. The fund does not have an explicit benchmark, but is actively managed on the basis of an investment profile consisting of 40% fixed income securities (Barclays Capital Euro Aggregate), 55% international equities (MSCI All Countries World NR) and 5% international real estate (GPR50 index Net Return (Net)). We emphasise stable asset growth. The fund aims to add value using a three-pronged approach: () Equity and bond selection, () selection from a varied set of investment funds and exchange traded funds (also known as Index Trackers or exchange traded index funds = an exchange traded mutual fund that invests in financial instruments, reproducing a market index, assets or strategy), and () portfolio diversification and risk management decisions. Investment type Sub-fund of the Belgian Sicav ING (B) Collect Portfolio Currency: EUR Launch date sub-fund: 0//007 First NAV date: 04/0/008 Maturity date: none Subscription / Exit Subscriptions or redemptions are possible each bank working day in Belgium before :0 p.m. (= D day). Net asset value calculation: D +, on the basis of the portfolio value on D +. Payment date: D +. Net asset value (NAV) The net asset value is calculated every bank working day in Belgium. The net asset value is published every public banking business day in Belgium in the financial press, as well as on the BeAMA website ( nav). It is also available at the Management Company s registered address and over the counter from your financial services provider. The published date corresponds to the conclusion date for all subscription, repurchase or switch orders. Minimum subscription amount: - Ongoing charges per year:.58% of which (maximum).% management fee Subscription fee: max % Exit fee: 0% Stock exchange duty taks - On subscription: none - On exiting or conversion:.% for capitalisation shares (max. EUR 4,000) 0% for distribution shares Risks Investors do not have a guarantee or capital protection. The value of investments may rise or fall, meaning that investors may yield less than they have subscribed. Market risk: high. The sub-fund invests in equity, fixed income and money market instruments. The net asset value is therefore sensitive to fluctuations in the equity and bond markets, and other specific risks of this type of investment. Performance risk: high. Depending on the investment strategy of the undertaking for collective investment, the return acquired over a specific period may be positive or negative. The performance risk is closely linked to the market risk. Credit risk: medium. Credit risk is the risk that the counterparty of the underlying investments may not be able to meet its obligations. Currency risk: high. The sub-fund invests worldwide, so the fund results may be affected by exchange rate fluctuations. (The prospectus contains a detailed description of the risks.) Taxation According to the fiscal legislation in force in Belgium: - Capital gains are taxable under Article 9bis Income Tax Code 9. The sub-fund invests less than 5% of its assets in interest-bearing securities; meaning that capital gains are not taxable. - Withholding tax of 0% on the dividends from distribution shares for investors resident in Belgium. Prospectus Before you subscribe, we advise you to read the prospectus and the key investor information document (KIID). The prospectus and the key investor information document (KIID) as well as the most recent periodic report are available free of charge from any ING branch and from our website, www. ing.be. Those documents are available in English, French and Dutch. Financial Services are provided by RBC Investor Services Belgium. Complaint service: - Internal: question@nnip.com - External: Ombudsfin North Gate II Koning Albert II-laan Brussels Ombudsman@Ombudsfin.be The term fund in this brochure refers to sub-fund of a Sicav. All data in this report are at 9/09/07 unless stated otherwise. Disclaimer This is a promotional document and as such the views contained herein are not to be taken as an investment advice. Statements of future expectations and other forward-looking statements might be included in this document. These expectations are based on management s current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements. Any information given in this document may be subject to change without prior notice. This document must not be copied, reproduced, distributed or passed to any person against payment at any time without our prior written consent. Please note that the value of your investment may rise or fall. Past performance is not indicative of future results. For further details on this fund, we refer to the prospectus, the KIID and the corresponding appendices, that mention all the needed information on the product, its costs and its risks. The prospectus, the KIID and the corresponding appendices are available on the following website: This disclaimer is governed by Belgian law. Responsible Editor NN Investment Partners Belgium sa/nv Head office: Avenue Marnix/Marnixlaan, B-000 Brussels Brussels Register of Companies VAT BE BIC (SWIFT): BBRUBEBB Account: (IBAN: BE ) 0/8 Editing Team & Graphic Studio Marketing NN Investment Partners 5/5