Ceres. A transparent approach completely in line with your investment profile. ing.be/privatebanking

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1 Ceres A transparent approach completely in line with your investment profile ing.be/privatebanking

2 My ING Private Banker examines my personal situation and my preferences. Therefore I can be certain that my portfolio perfectly matches my investment expectations. You want to delegate the management of your capital to experts and at the same time be regularly informed of their decisions. You want to maximise your capital and at the same time curb your risk taking. To comply with these expectations, ING Private Banking can offer you an efficient solution characterised by a dynamic and rigorous investment process. Talk to your ING Private Banker and he or she will be happy to examine the possibilities and opportunities available to you. 2 Private Banking 2014

3 Commercial document An innovative management package Are you looking for a management package which offers an attractive return and takes account of risks? In this case, our "Ceres" management package is the ideal solution for you. A global approach Substantial support ING Private Banking aims to optimise the portfolio performance of all its clients. Since 2006 already we have invested in a selection of third-party funds and index tracker funds (trackers). The Ceres managers are part of the ING Investment Office and keep a close track of international market trends. They are assisted by the ING Investment Office and a team of financial experts. In addition ING Private Banking has also managed a model portfolio made up of funds and trackers since With success. With such a wealth of results and our expertise, we developed the Ceres concept a few years ago. Discretionary management, the counterpart of advisory investment The aim of Ceres? To attain a long-term investment return above the benchmark (market reference) and at the same time pay special attention to risk management, in keeping with your investment profile and horizon. For your convenience, you entrust the exclusive management of your capital to ING Private Banking through a discretionary management mandate. In this way you benefit fully from the expertise of ING Private Banking managers who select and weight the assets which make up your portfolio. This package is the opposite of advisory management whereby you decide on the breakdown of your portfolio according to your investment profile, which depends on the risk profile you chose. The team analyses financial instrument developments. Such information, backed up by the general investment strategy defined by ING Belgium, enables the team to balance risk and return for the allocation of your portfolio. The main characteristics of Ceres Open architecture One of the major advantages of ING Private Banking is the use of a comprehensive range of financial products suited to your needs. Consequently we do not hesitate to use funds of other banks or management companies if they offer an attractive potential. To this end, ING Private Banking works with over thirty fund managers. To select and monitor these funds, ING Private Banking calls on the assistance of Altis, a Swiss company incorporated within the ING Group a few years ago. Altis enjoys an excellent reputation in the field of analysing and selecting investment funds. For more than twelve years it has been analysing and recommending investment funds, based on both quantitative and qualitative criteria Private Banking 3

4 Here are some examples of fund managers with whom we work: BlackRock BlueBay Asset Management Deutsche Asset and Wealth Management Fidelity Worldwide Investment Franklin Templeton Investments Goldman Sachs Asset Management ING Investment Management ishares J.P. Morgan Asset Management Lombard Odier Investment Managers Natixis Global Asset Management Pictet Asset Management Schroder Investment Management State Street Global Advisors (manager of SPDR trackers) Swiss & Global Asset Manager (manager of Julius Bär funds) Threadneedle Investments Five or six asset classes Ceres aims to optimise the balance between risk taking and return. To attain that aim, this option maximises diversification by investing in five or six different asset classes, depending on your risk profile: Cash Bonds Shares Real estate Commodities at your discretion, alternative investments (depending on your investment profile) In this way you can invest in asset classes which are often difficult for private individuals to access, for instance, commodities. The geographic allocation of your portfolio is also diversified. Our strategists keep track of markets worldwide for you. Seven investment profiles Your ING Private Banker is always available to help with your investment decisions. Initially, he or she will start by analysing your personal situation and your preferences. For that purpose, he or she will ask about your objectives, investment horizon and preference for alternative investments. On the basis of this information and your risk profile, your ING Private Banker will offer you one of the following seven Ceres profiles: Ceres Pure bond Ceres Defensive 1 Ceres Moderate 1 Ceres Balanced 1 Ceres Active 1 Ceres Dynamic 1 Ceres Pure Equity What if you subsequently realise that another investment profile better matches your plans? In that case you can simply choose another! As Ceres does not charge any entry fees in the event of exiting or a change to your strategic profile. Comprehensive management What if you opt for Ceres? In that case you are also opting for diversified and dynamic management, characterised by active risk control. Your ING Private Banking managers select and closely monitor investment instruments. They group them together to make up your portfolio and constantly optimise it. You will receive a transparent report for each change made to your portfolio allocation. Such changes are accessible both on paper via Home'Bank and our ING Smart Banking app. Three key figures Minimum investment: 500,000 euros Annual management fee on the assets invested: 0.605% (incl. V.A.T.) 2 No other costs: you will not pay any fund entry fees nor any brokerage, safe-custody or dividend collection fees. 1 Such profiles make it possible to include alternative investments in your portfolio. 2 The management fee covers the selection and allocation of financial instruments, as well as management and monitoring of your portfolio. It is payable on a quarterly basis. 4 Private Banking 2014

5 The performances of Ceres in figures The past teaches us that stock market trends are difficult to forecast. Sometimes they can incur losses or, conversely, high returns. Do you want to curb the risk of loss and maximise your chances of gain? You must respond very quickly to upward and downward trends. The ING Private Banking managers act on your behalf. You delegate to them the tactical decisions with regard to the allocation of your Ceres portfolio. They will seize opportunities as they arise on financial markets. A graph says far more than a long speech The graphs 3 below show the performance and volatility of Ceres since 31 December We compare the Balanced profile (with alternative investments) to its benchmark. A. Performance Ceres Balanced (with alternative investments): Performance versus Benchmark From 31 December 2008 to 31 December 2013 Ceres outperformed the benchmark by 2.24 %: 44.74% for Ceres (with alternative investments), against % for the benchmark. 31/12/2013 Ceres Bal+Alt. = % since 31/12/2008 Benchmark World Bal = % Excess performance = +2.24% Ceres Bal.+Alt. BENCH XS Performance 45,00 40,00 35,00 30,00 25,00 Performance % 20,00 15,00 10,00 5,00 0,00-5,00-10, Période Time 3 These graphs reflect the situation as at 31 December It is neither a projection, nor a guarantee of profit. The past performances and volatility of Ceres concept do not in any way guarantee the future. The above results include fees but not taxes Private Banking 5

6 B. Risk Ceres Balanced (with alternative investments): Volatility versus Benchmark The volatility of Ceres (with alternative investments), calculated as at 31 December 2013, has nearly always remained below that of the benchmark. On 31 December 2013 volatility was 4.31% for Ceres (orange line) against 4.69% for the benchmark (blue line). Ceres Bal.+Alt. Volat Bench Volat 18,00 16,00 14,00 12,00 Volatility % Volatility % 10,00 8,00 6,00 4,00 2,00 0,00 01/12/ /09/ /06/ /03/ /12/ /09/ /06/ /03/ /12/ /09/ /06/ /03/ /12/ /09/ /06/ /03/ /12/ /09/ /06/ /03/ /12/2008 Period Risks Market risk - Risk with regard to underlying investments Any potential investor should be aware of the fact that the funds invest in risky assets (shares, real estate, commodities, currencies high-yield bonds, etc.). In this regard, they are subject to both normal and exceptional market fluctuations and to other risks inherent in such investments. No capital protection The value of the investments and income they yield can rise or fall, which can result in a loss of the capital invested. Investment profile The projected long-term return of a portfolio is linked to the risk which an investor is willing to accept. The diversity of investment profiles and the risk management strategy applied ensure that each investor can find a version of Ceres which matches their risk tolerance. Exchange rate risk An exchange rate risk can exist, insofar as the funds invest in assets spread worldwide and that not all currencies are hedged. 3 These graphs reflect the situation as at 31 December It is neither a projection, nor a guarantee of profit. The past performances and volatility of Ceres concept do not in any way guarantee the future. The above results include fees but not taxes. 6 Private Banking 2014

7 A transparent management strategy Ceres is not a fund of funds but rather an investment package which combines various funds in a completely transparent manner. At all times you benefit from total transparency on each transaction we carry out for you. The key word of Ceres is transparency. How? Thanks to Home Bank and to your ING Private Banker, you can monitor your investments (asset allocation and return) day by day. In addition you will receive a quarterly management report and you will be updated about any news through the monthly newsletter. A unique concept strategy. The managers rely on both quantitative and qualitative criteria to build up your portfolio. They opt for financial instruments which can guarantee the best risk/return ratio. Ceres varies according to different investment profiles. In particular you can choose whether or not to include alternative investments. While benefiting from the expertise of ING Private Banking s specialists, Ceres can take advantage of any financial market opportunity to optimise the diversification of your portfolio. The five or six asset classes offered are used to their full potential. Ceres is for ING Private Banking clients who want to invest a minimum amount of 500,000 euros. They entrust the management of their investment to specialists who, an average, have fifteen years experience. Ceres reflects ING s Belgium's general investment Identity details of Ceres > Discretionary management of investment funds, grouped under an open architecture > Ceres managers, with the backing of a local team of financial experts > Objective : higher return than the benchmark index (over a full economic cycle) > Permanent risk management > Transparent tracking via Home Bank, the monthly newsletter, the quarterly report and our ING Smart Banking app. > Attractive management fee of just 0.605% (incl. V.A.T.) per annum on the assets invested Important information This document is a commercial document, compiled and distributed by In Private Banking, a commercial department of ING Belgium. It is communicated to you for purely information purposes and in no way constitutes investment advice within the meaning of the royal decree of 5 March Its contents are based on the information provided by the client (ING is not obliged to verify such information) and, where appropriate, information sources deemed to be reliable. ING Belgium, or any other company of the ING Group, in no way assures, guarantees or represents - whether expressly or implicitly - the accuracy, appropriateness or exhaustiveness of the information provided. The information presented here can be changed without notice. Neither ING Belgium, nor a company of ING Group, nor any of its executives, directors or staff accepts any obligation - and in particular an obligation of results - or liability for the information provided. The recommendations communicated by ING are in good faith. For that purpose ING avails itself of all reasonable resources. The value of the financial instruments and the amount of income they yield, can either rise or fall; it is not guaranteed. Results, performances and actual events can differ considerably from the indications formulated. Such discrepancies can be ascribed to several factors, and in particular by (i) the general situation on the markets where ING carries out its basic activities; (ii) the overall performance of financial markets, and in particular that of emerging markets; (iii) interest rate levels and variations in such levels; (iv) exchange rates; (v) competition factors in general; (vi) changes in laws and regulations and (vii) possible modifications to the policies of governments and/or regulatory authorities. Investors should be aware that each of the products and securities mentioned is subject to specific conditions. Past results in no way guarantee future performances. All rights reserved. No part of this publication may be reproduced, stored in a data extraction system or transmitted in whatever form or by whatever means (mechanical, photocopying, recording or other) without the prior consent of the copyright holder. The aforementioned provisions do not exempt ING Belgium, nor its agents, executives or staff from liability in the event of "gross negligence" Private Banking 7

8 ING PRIVATE BANKING Do you want to find out more about Ceres? For further information about Ceres, please contact your ING Private Banker, who will be happy to help you. You can also visit our website ing.be/privatebanking and complete the contact form. ing.be/privatebanking ING Belgium SA/nv Bank avenue Marnix 24, B-1000 Brussels Brussels RPM/RPR VAT: BE BIC: BBRUBEBB IBAN: BE Publisher: Inge Ampe Cours Saint-Michel 60, B-1040 Brussels Editing Team & Graphic Studio - Marketing ING Belgium Z72078E 01/14 8 Private Banking 2014