19 November 2020
The ING investment strategy
An investment strategy helps you to make informed decisions, but creating and following your own plan can be a challenging task. An interesting alternative might be to take advantage of the ING investment strategy instead.
What is an investment strategy?
Over the long term, investing offers you a strong potential return. You are aware of that already. However, which investments you should make and when: that is another issue entirely.
To make well-informed decisions, you need an investment strategy. Based on your risk profile, you choose a particular route to then set the goals you want to reach. Your specific investment strategy will be the foundation for deciding when, why, how much and what you want to invest in.
Can I draw up an investment strategy myself?
You can do it yourself, if you know enough about financial markets and you 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 do not have enough time?
Most investors do not have the time to outline a strategy and monitor their investments daily. Choosing a benchmark, monitoring economic data, looking for new opportunities, assessing risk, limiting volatility and regularly rebalancing your portfolio are all labour-intensive and time-consuming tasks. Especially in the current economic climate.
Even with a pre-set strategy in place, many investors still make their trades based on gut feeling. This often leads to taking profit too quickly or holding underperforming investments for too long. After a few months or years, their strategy is but a distant memory. And the chances of achieving their financial goals are diminished.
That is why investors make the conscious choice not to do all the work themselves, but to follow the investment strategy of a professional.
How do I follow an investment strategy?
One option is, for example, to invest in one or more investment funds that are developed and monitored by a professional manager. You are not choosing these investment funds randomly.
Your selection should take account of which strategy best suits your goals. Your ING adviser is here to assist you in creating an investor profile that matches your risk profile, goals and other priorities.
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.
In addition, we provide solutions developed by us with our in-house fund manager: ING Solutions Investment Management. This range is broad enough to establish a diversified portfolio.
Every month, ING draws up a shortlist of investment funds that are perfectly aligned with the bank's investment strategy and economic vision.
How does ING’s investment strategy take shape?
The strategy is created through a robust process, that (in simplified form) is as follows.
- A team of dozens of ING experts closely monitors 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.
- 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, bonds, property, commodities and cash), subclasses also receive a ranking according to theme, sector, size, region, etc. Subclasses can include, for instance, American shares, healthcare sector shares, midcaps, emerging market (government) bonds, and others. The more attractive they are, the greater the weighting given to an asset class and subclass within the investing strategy.
- From a broad spectrum, the most efficient solution is selected for each asset class and subclass. For shares, ING selects 50 companies from a complete spectrum of 1,100 companies. The same happens with bonds, investment funds and other asset types.
- Do you invest in investment funds? Every month (if necessary), ING sends its purchase selection together with its short list. The short list is made up of the investment funds that are most closely aligned to the ING investment strategy.
Who determines the ING investment strategy?
The team at ING includes economists, analysts and portfolio managers. Although the team operates in Belgium, their vision is global — meaning that they do not just look for investment opportunities in their own backyard, but in all important financial markets. The team meets every two weeks, or - in case of exceptional market movements - on the same day.
What does the current ING investment strategy look like?
An investment strategy is not static, but dynamic. Consequently, the rankings of asset classes within the ING investment strategy change just like the rankings of its share, obligation, investment fund and other selections.
Looking for more information?
Would you like personal guidance choosing your investment funds? Our experts are always available to help. Make an appointment and discover which investment funds best suit 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, which is tailored to your risk profile and goals. The portfolio may include investment funds, shares, bonds and structured products. However the portfolio is composed (from very defensively to very dynamically), the ING investment strategy is always 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 opt for a model portfolio (investment fund), where a team of experts 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 further diversify how you invest a larger amount of capital and put your own stamp on your investing.