Investments

6 April 2020

How does the corona crisis affect your pension savings?

You have probably noticed, the value of your Star Fund has gone down as a result of the current coronavirus crisis. We fully understand your concern. Which is why we have drafted answers below to your most frequently asked questions.

You can find more detailed information about the most recent developments in this Special Reporting Star Fund. This document explains the recent evolutions on financial markets, the fund's performance since its creation and the asset managers’ investment strategy. 

Star Fund is a pension savings fund* that invests mainly in shares and bonds. Shares and bonds have a daily market price that fluctuates according to market conditions. The fund has a risk/return profile of 4 (on a scale of 1 to 7), which is based on the fund’s performance during the measurement period**. For more details information about Star Fund and the associated risks, please visit ing.be/starfund

Risk and Reward Profile

Risk and Reward Profile

** Historical data, as used to calculate this indicator, may not be a reliable indicator of the future risk profile of this fund. The lowest risk category does not mean that this is a risk-free investment. This fund belongs to category 4 due to the changes in the product in the course of the measurement period. The market risk, allowing for past performance and potential movements in the financial markets, associated with financial instruments used to achieve the investment objectives, is viewed as high. Financial instruments are affected by various factors. These include, but are not limited to trends in the financial markets and the economic situation of issuers of financial instruments, which are in turn affected by general global economic conditions and the economic and political situation in each country. The capital risk and performance risk of the fund are considered to be high. The expected credit risk (the probability that the counterparty will not meet its obligations) of the underlying investments is medium. Investments in a specific regions are more concentrated than investments in various geographic regions. The inflation risk of the fund is considered to be medium. The currency exposure can also affect the results of the fund. There is no guarantee whatsoever that you will recoup your original investment. 

As a result of the coronavirus crisis and the sharp fall in oil prices, the markets are currently experiencing daily corrections. Star Fund is no exception to this volatility. There is a clear atmosphere of panic and mention has been made of a possible recession. In response, central banks and governments are taking steps to support the economy. Among other things by guaranteeing liquidity to minimise the risk of default and stabilise the financial system. However, past experience of similar crises suggests that the markets will recover over the medium term. 

Consult our regularly updated analyses on the economic and financial impact of the coronavirus.

The coronavirus crisis also has an impact on the performance of your Star Fund. As a pension savings fund, Star Fund is actively managed in the contexts of a relatively long-term investment horizon. This means that the managers make investment decisions on a daily basis according to a well-considered strategy. You can find extensive information about Star Fund and the recent market evolutions in the Special Reporting Star Fund.

The stock markets have undergone significant corrections in recent weeks, which further highlights the importance of a long-term investment strategy. Of course, the right decision depends on your own personal financial situation, investment profile and investment horizon.  

If you have questions about your investments and securities, our advisors can offer special assistance by telephone.