Kronos. ING Private Banking's solution for demanding investors. ing.be/privatebanking

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1 Kronos ING Private Banking's solution for demanding investors ing.be/privatebanking

2 I use Home'Bank and the ING Smart Banking app to keep track of the performances of my Kronos portfolio on a daily basis. Easy, clear and transparent. You want to entrust the management of your capital to experts and at the same time to be informed of their decisions. You would like your capital to yield a return but to minimise risk taking. With a view to meeting your expectations, ING Private Banking can offer you a strong solution in the form of a dynamic investment process combined with close monitoring. 2 Private Banking 2015

3 Discretionary management by ING Private Banking Kronos is a discretionary management contract that offers several advantages. Discretionary management, the counterpart of advisory management The aim of Kronos? To attain a high-performance, long-term investment return profile and at the same time pay special attention to risk management, as well as your investor profile and investment horizon. For your convenience, you entrust the exclusive management of your capital to ING Private Banking through a discretionary management mandate. As a client, you therefore rely entirely on the expertise of ING Group portfolio managers who select and weight the assets to be included in your portfolio. This type of management is the counterpart of advisory management, where you decide on the composition of your portfolio, in line with your investor profile and your risk tolerance. What are the main characteristics of Kronos? Five asset classes The main aim of portfolio managers is to optimise the risk/return ratio of your portfolio. To attain this aim they maximise portfolio diversification by investing in five different asset classes: bonds, equities, real estate, commodities and cash according to your risk profile. Through such diversification you can also invest in assets which are often difficult for private individuals to access (e.g. commodities). This diversification is also found in the geographical allocation of your portfolio. Seven investment profiles Your ING Private Banker will advise you on all your investment decisions. Initially, he or she will overview your personal situation, your preferences and your appetite for risk. For that purpose, you will be asked about your investment objectives and horizon. Furthermore, he or she will check whether you want to hedge your portfolio against exchange rate risks. On the basis of this information and your investment profile, your ING Private Banker will offer you one of the following seven risk profiles: Kronos Pure Bond Kronos Defensive Kronos Moderated Kronos Balanced Kronos Active Kronos Dynamic Kronos Pure Equity 2015 Private Banking 3

4 Total transparency Controlled risk You entrust the management of your wealth to us. What do we offer you in exchange? Total transparency! It is impossible to maintain a decent long-term return without permanent and structured risk management. On a daily basis, you can monitor the performance of your Kronos portfolio through Home'Bank and our ING Smart Banking application. This is why an internal risk model has been developed for all asset classes and for each type of financial instrument. You will also receive a quarterly personal management report. Transparent and attractive charges Moreover, your ING Private Banker is continuously informed of developments in your portfolio and will regularly update you regarding the economic context, the portfolio managers' vision of it and the resulting investment decisions. Performance Kronos's charges are particularly clear and competitive. Charges Annual Kronos contract management commission: 0.242% (incl. VAT) of the value of the assets under management. Funds managed by ING Group are excluded from the calculation of this remuneration. Kronos' performance Would you like to know more about Kronos? As financial markets are becoming ever more unpredictable, the risks of loss are rising. Your ING Private Banker is available to clearly explain the different characteristics. However, by authorising ING s managers to make strategic decisions concerning fund selection and portfolio structuring on your behalf, you put yourself in a position where you can take full advantage of the different opportunities available on the financial markets. The ability to rapidly anticipate changes in stock market performance is of critical importance in enjoying both good returns and asset security. 4 Private Banking 2015

5 I prefer to entrust the management of my portfolio to experts. At ING Private Banking I know that my money is in good hands. Kronos : a powerful concept Kronos is a discretionary management solution exclusively for the clients of ING Private Banking who wish to invest a minimum amount of 250,000 and to entrust the management of this capital to seasoned professionals. This discretionary management approach follows ING Belgium's overall investment strategy. From the selection of investment profiles available, you choose the one that is the best match for your risk tolerance level. In this context, you must take into account the following risks: Risks Market risk: the value of the underlying assets is exposed to market fluctuations. Exchange risk: the contract provides the option to hedge the exchange risk. If you do not hedge it, the value of your assets is subject to exchange rate fluctuations. No capital guarantee: the capital invested is not guaranteed. This risk is nonetheless limited through diversification and the professional risk management provided by ING Private Banking Private Banking 5

6 ING PRIVATE BANKING Does this interest you? Would you like to find out how to make your capital yield a return while minimising your risk? Do not hesitate to contact your ING Private Banker. ing.be/privatebanking Important information These documents are commercial documents, compiled and distributed by ING Private Banking, a commercial department of ING Belgium. They have been compiled for the purpose of information and do not contain any investment advice within the meaning of the Royal Decree of 5 March The contents are based on information provided by the customer (ING is not required to verify such information) and, where appropriate, on information sources deemed to be reliable. Neither ING Belgium, nor any company of the ING Group, gives any express or implicit guarantee, assurance or assertion with regard to the correctness, appropriateness or comprehensiveness of the information provided. The information communicated herein may be changed without prior notice. Neither ING Belgium, nor any company of the 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 have been established in good faith, with ING using all reasonable means to this effect. The value of the financial instruments and the amount of income they yield may rise or fall; it is not guaranteed. The actual results, performance and events can substantially deviate from what is indicated in this publication. Any differences can be explained by a number of factors including (i) the general economic climate in the markets where ING mainly operates; (ii) the overall performance of financial markets, including emerging markets; (iii) interest rate levels and fluctuations in such rates; (iv) exchange rates; (v) general factors of competition; (vi) changes to legislation, in particular in the area of tax, and regulations as well as (vii) any changes likely to occur in the policies of government and/or regulatory authorities. All investors should be aware that each of the products and financial instruments mentioned is subject to specific terms and conditions. Past results in no way guarantee future performance. 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 or its executives, managers or staff from liability in the event of "gross negligence". ING Belgium SA/nv Bank Registered office: 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 E 06/15