Investments

6 January 2020

The ING Investment Strategy

An investment strategy helps you to make a considered decision but creating and following your own plan can be a challenge. An interesting alternative might be to follow the ING investment strategy.

What is an investment strategy?

Over the long term, investing promises strong return potential. You are confident about that already. However, where you should invest and when: that's another issue entirely.

To make prudent decisions, you need an investment strategy. You choose a particular route, based on your risk profile, and then establish the goals you want to reach. When, why, how much and in what you want to invest, depends on your chosen investment strategy. 

Can I prepare an investment strategy myself?

You can do it yourself, if you know enough about financial markets and are able to regularly spend time on your investments. Your investment strategy should be both robust and flexible in order to reach your goals in a range of market circumstances. 

What if I don't have the time to do it?

Most investors don't have the time to outline a strategy and to monitor their investments on a daily basis. Choosing a benchmark, monitoring financial data, looking for new opportunities, assessing risk as well as regularly rebalancing your portfolio are all labour-intensive and time-consuming tasks.

Even with a pre-set strategy in place, many investors make their trades on gut feeling. This often leads to taking profit too quickly, or holding under-performing investments for too long. After a few months or years, their strategy is a distant memory. And the chances of achieving their financial goals are diminished.

That's why investors often choose to follow the investment strategy of a professional, rather than to do all the work themselves. 

How do I follow an investment strategy?

One option is, for example, to invest in one or more investment funds developed and monitored by a professional manager. You do not choose these investment funds randomly. Your choice should take account of which strategy best suits your goals. Your ING adviser is here to help you make a decision based on your risk profile and goals.

Are you a private client who is looking to invest in funds? We offer a range of funds managed by our partners, renowned management companies: AXA Investment Managers, Blackrock, Amundi, Franklin Templeton Investments and NN Investment Partners. We also offer you solutions tailored by us with our in-house manager: ING Solutions Investment Management. This range is broad enough to establish a diverse profile. Every month, ING draws up a short-list of investment funds that align perfectly with the bank's investment strategy and economic view.

How does the investment strategy of the ING take shape?

The strategy is created through a robust process, that (in brief) is as follows.

  1. A team of ING experts monitor the economy and financial markets. This is done using in-house research and information from data providers. From this foundation, the team formulates a vision for the economy and all the important financial markets.
  2. Based on the vision of the ING experts, each asset class receives a score for its attractiveness. Quotes are not only given for whole categories of asset classes (shares, obligations, property, commodities and cash), subclasses also receive a rating according to theme, sector, size, etc. Subclasses include American shares, healthcare sector shares, midcaps (medium-sized companies with market values of between two and 10 billion dollars), government bonds of emerging markets, and others. The more attractive they are, the greater the weighting given to an asset class within the investing strategy.
  3. From a broad spectrum, the most efficient solution is selected for each asset class and subclass. For shares, ING makes a selection of 50 from a spectrum of 1,100 companies. The same happens with obligations, investment funds and other asset types.
  4. Do you invest in investment funds? ING will offer you its purchase selection monthly, along with its short list. This short list consists of investment funds that are closest to the ING investment strategy.
Who drafts the ING investment strategy?

The team at ING includes economists, analysts and portfolio managers. Though the team operates in Belgium, it utilises a global vision. Meaning that it does not just look for investment opportunities in its own back garden, but in all important financial markets. The team comes together every two weeks or on the same day if there are exceptional movements in the markets.

What does the current ING investment strategy look like?

An investment strategy is not static, but dynamic. Consequently, there are normally changes in the weighting of asset classes within the ING investment strategy, similar to its shares, obligations, investment funds, etc.

More information?

Would you like personal guidance with choosing your investment funds? Our experts are always available to help. Make an appointment and discover which investment funds are best suited to your profile.

Are you a Private Banking customer?

Another option is to choose Private Banking (from EUR 500,000). A portfolio manager will put together a portfolio for you, based on the ING global investment strategy, tailored to your risk profile and goals. The portfolio may include investment funds, shares, obligations and structured products. However the portfolio is composed (from very defensively to very dynamically), the ING investment strategy will remain the common denominator. You and your portfolio manager will meet regularly to discuss results, so you will be the one holding the reins. You can also choose for a model portfolio (investment fund) in which management is fully performed by a team of experts who manage the investment fund exclusively for ING private banking. If you have opted for discretionary management, the composition of your portfolio follows the strategic vision of ING, in line with your risk profile.

If you make your investments within Private Banking, then your Private Banker can suggest numerous fund houses. That way, you can diversify how you invest a larger amount of capital even more, and put your own stamp on your investing.