Star Fund

• Star Fund is a mutual investment fund (of the pension savings fund type) under Belgian law with a variable number of units. A pension savings fund is an undertaking for collective investment (UCI) that is managed in the sole interest of the unit-holders and whose sole purpose is to invest in financial assets. The pension savings fund's capital rises or falls as unit-holders enter or exit the fund. Via pension savings, you supplement your state pension with a capital that you build up at your own pace.
• Are you between the ages of 18 and 64 (on 31 December of the year of subscription) and are you a resident of Belgium who pays your personal income taxes in Belgium? In that case you can subscribe to Star Fund.
• Your payments will be made by direct debit from your ING current account or an ING Invest Account. The only condition is that the (joint) account holder is the same person as holds the account linked to your pension savings fund

The fund is a legally authorised pension savings fund that invests in a mixed portfolio of equities, bonds and cash, primarily denominated in euro, in accordance with the applicable legislation on funds and taxation of pension savings funds. The portfolio is spread across various asset classes, countries and sectors and is actively managed in order to be able to respond to changing market conditions whilst, among other things, using fundamental and behavioural analysis, resulting in a more dynamic asset allocation across different various investments. The aim of the fund is to create long-term value. Benchmark: 60% MSCI Composite Return (64% MSCI EMU Net Return/20% MSCI EMU Small Caps Net Return/13% MSCI U.S. Net Return/3% MSCI Japan Net Return), 35% Bloomberg Barclays Euro Aggregate Total Return and 5% 1-month Euribor. The composition of the fund's investments may differ materially from that of the benchmark. The benchmark provides a broad view of our investment universe. The fund may invest in securities outside this universe. The benchmark is used as part of the internal risk assessment process. The fund may only use derivatives to hedge against exchange rate risk. You can sell your share in the fund on any trading day on which the value of these shares is calculated. The fund promotes environmental and/or social characteristics, as described in Article 8 of the Sustainable Finance Disclosure Regulation ("SFDR"). Specifically, this means that the fund manager looks beyond mere financial criteria. When making investment decisions, restriction criteria and the analysis of environmental, social and governance factors (hereinafter referred to as ESG factors) are also taken into account. Further details of the ESG integration methodology is available in the "NN IP Responsible Investment Policy", which can be found at www.nnip.com. For more information on the investment policy and the exclusion criteria applied, please see the prospectus, which can be consulted at www.star-fund.be. The fund does not aim to pay you a dividend. It will reinvest all earnings.

*The term "fund" refers to a mutual investment fund (of the pension savings fund type). 

** The term “pension savings” used on this web page refers to an investment in a pension savings fund

In addition to the financial criteria, Star Fund promotes ecological and/or social characteristics. In concrete terms, this means that investment decisions also take into account the restriction criteria and the analysis of environmental, social and governance (ESG) factors.

The manager uses internal and external scoring systems for this:

• internal: The manager is assisted in this by the ESG Committee of NN Investment Partners, a business unit of NN Group. It is responsible for formulating the responsible investment policy framework within which portfolio management decisions must be made, taking into account the applicable restrictions and limitations.
• external: such as Bloomberg, a leading data provider for businesses and markets, Sustainalytics, provides ESG policy, performance and behavior information for more than 5,000 issuers and companies, and ISS Ethix Climate Solutions, a specialist researcher on data on environmental footprint, waste and water consumption of more than 5,000 companies.

The fund only aims to invest in companies and institutions that pursue responsible development:

• with respect for the environment (e.g.: water management, the management of greenhouse gas emissions, a green procurement policy);
• with respect for its social role (e.g.: good working conditions, focused on customer satisfaction);
• and with good corporate governance (e.g.: promoting the independence of the Board of Directors, a responsible remuneration policy).

Henceforth, Star Fund applies the NN IP Responsible Investment Policy, with regard to the criteria used by the Fund for responsible investment.

These criteria may give rise to certain restrictions. These restrictions apply in particular to issuers engaged in activities such as (non-exhaustive list):

• the development, production, maintenance or trade of controversial weapons,
• the production of tobacco products,
• the extraction of coal for electricity production and the extraction of oil from oil sands.

In addition to these general restriction criteria, the selected companies must meet additional restriction criteria. These additional restriction criteria relate to companies that are active in the following sectors:

• Tobacco
• Weapons
• Extraction of coal for electricity production¹
• Extraction of oil from oil sands
• Nuclear energy (allowed for green bonds²)
• Gambling Activities
• Adult entertainment
• Fur and special leather
• Arctic drilling
• Shale oil & gas

Star Fund does not invest in companies that violate generally accepted values ​​and standards:

• the Universal Declaration of Human Rights;
• the main ILO³ conventions;
• the OECD⁴ Guidelines for Multinational Enterprises and
• who have a close involvement with dictatorial regimes.

Star Fund thus combines the characteristics of a broadly diversified portfolio with responsible investment. More information on the ESG-criteria can be found in the prospectus.

There is no direct link between the ecological and social characteristics of the subfund and the benchmark used by the subfund.

¹ Restriction criteria applicable to this sector: Companies that derive more than 5% of their income from coal mining for electricity production are excluded.

² Green bonds are fixed-income instruments where the proceeds are used to partially or fully (re)finance new and/or existing projects that have proven to be beneficial for the environment.

³ ILO = International Labor Organization.

⁴ OECD = Organization for Economic Co-operation and Development.

Source: Morningstar Direct ™

Actuarial return expressed on an annual basis in the currency of the relevant mutual investment fund over 1 year, 3 years, 5 years, 10 years and since inception. This relates to the end-of-month returns based on historical data.

The returns shown and the changes in net asset value refer to the past, and past performance is not a reliable indicator of future performance. Past returns include fees and commissions, with the exception of entry and exit fees and conversion costs. Past returns are calculated in EUR on an annual basis. The returns shown apply to the investment fund's capitalisation base. The returns between 2008 and 2015 were achieved at a time when the pension savings fund had different characteristics. As a result of the change to the investment policy of the pension savings fund as from 1 October 2018, the returns have been calculated on a different basis as from that date.

ISIN code: BE0026510298

Date of creation of the share class: 19/02/1987

Currency of the share class: The currency of reference is the euro.

• You pay less tax: An investment in this fund entitles you to pension savings tax relief in accordance with the provisions of the 1992 Income Tax Code, as described below under “taxation”, subject to changes to fiscal regulations. That means it is advantageous whether or not you have been working for a long time. The possibility of exiting the fund prematurely remains available, although this has extremely adverse tax consequences (tax rate of 33%). You receive a tax reduction of respectively:

• 30% if you opt for the ceiling of up to 990 euros in 2021. The maximum tax reduction in that case amounts to 297 euros + municipal taxes.
• 25% if you opt for the increased ceiling of up to 1 270 euros in 2021. The maximum tax reduction in that case amounts tot 317.5 euros + municipal taxes.

• Towards Sustainability label: Star Fund has obtained, in Belgium, the Towards Sustainability label, a quality standard for socially responsible and sustainable financial products. The allocation of this label to the subfund, does not mean that the subfund meets your objectives with regards to sustainability or that the label meets the requirements of future national or European rules. For more information with regards to this subject, please see the website of FSMA. The label obtained is valid for one year and an annual review will take place.
• You contribute at your own pace: You choose the amount and frequency of your payments yourself. You can decide each year whether you want to invest a maximum of 990 euros or 1 270 euros (2021 figures) or whether nothing.
• Starting from 24 euros per month: You can also place a standing order for a minimum of 24 euros. In this way you gradually build up a large pension capital.
• You can open and manage your pension savings online: You can track the capital you have built up in Home’Bank and you can manage your payments there as well.

Please note: returns are not guaranteed. You should also take the subscription fees and ongoing charges into account, as described in the following paragraphs.

The main risks to be considered are as follows:

• Market risk: The market risk, which takes into consideration past performance and potential future changes in the financial markets in relation to the financial instruments used to attain the investment objectives, is considered high.
• Capital risk: the investor has no guarantee or capital protection. The value of investments can increase or decrease.
• Non-performance risk: Depending on the investment strategy of the undertaking for collective investment, the return over a specific period may be positive or negative. The non-performance risk is closely related to market risk and is considered high.
• Credit and counterparty risk: Risk that an issuer or counterparty will default.
• Currency risk: The risk that the value of an investment is affected by currency fluctuations is considered average.
• Concentration risk: the risks associated with a large concentration of investments in certain assets or markets.
• Inflation risk: inflation reduces the fair value of assets in investment funds (nominal value does not change). The risk of inflation is considered moderate. 
• Sustainable risk: Risk relating to an event or situation in the environmental, social or governance field which, if it occurs, could have a material or real negative impact on the value of the investment. Sustainability risks may constitute a separate risk or have an impact on other portfolio risks and contribute significantly to overall risks such as market risk, liquidity risk, credit risk or operational risk. The risk is considered moderate.. 
• Liquidity risk: The fund’s liquidity risk is low. Liquidity risks arise if an underlying investment is difficult to sell, putting the repayment of your investment in the fund at risk.

No guarantee is given that returns will be obtained and/or that the initial stake will be recovered. Amounts invested in CIUs (Undertaking for Collective Investment) are not covered by the Fund for the protection of deposits and financial instruments.

The net asset value is published on every public banking working day in the Belgian financial press as well as on the BeAMA website (please note: if you click on this link, you will leave the ING website). It is also available at the management company’s registered address and from branches with financial service providers.

• Entry charge (applicable by ING Belgium): 3%
• Exit charge: 0%
• Ongoing charges taken from the Sub-Fund over a year: 1.17% of which 0.90% management fees.

A detailed description of all fees is available on page 20 of the prospectus.

Taxation

• An investment in Star Fund entitles you to pension savings tax relief in accordance with the provisions of the 1992 Income Tax Code, as described below, subject to changes to fiscal regulations. An investor in Star Fund who is a resident of Belgium (or of a member state of the European Economic Area) and subject to Belgian personal income tax is eligible for the tax relief. The investor must be over 18 and under 64 years of age in the year when the account is opened. The account must also have a minimum term of ten years. The amount that qualifies for tax relief is limited to a maximum purchase amount per taxpayer in each taxable period. This may be increased by Royal Decree. From the age of 55 you should not deposit more than what you did in the previous years. Indexation of the amounts is possible in accordance with the legal provisions. The tax relief is calculated at the special average tax rate of 30% or 25% respectively, plus municipal tax. You receive an annual tax reduction of, respectively:

• 30% if you opt for the ceiling of up to 990 euros in 2021. The maximum tax reduction in that case amounts to 297 euros + municipal taxes.
• 25% if you opt for the increased ceiling of up to 1 270 euros in 2021. The maximum tax reduction in that case amounts to 317.5 euros + municipal taxes.

• Conditions for the increased tax ceiling of 1 270 euros in 2021:

• If you wish to invest more than 990 euros/year, then you have to inform ING of your explicit choice.
• The choice is irrevocable and valid exclusively for the tax period specified. As a result, you will have to make the choice again each year.
• If a sum higher than 990 euros is invest in a year when no prior choice has been explicitly made, the amounts above 990 euros will be returned free of charge.

• From 2015 to 2019, there is an annual anticipatory levy of 1% on the final tax. This anticipatory levy is calculated on the savings that had been built up as at 31 December 2014.
• Repayment of capital: The tax rate amounts to 8% in principle, but is reduced by the amount of the anticipatory levy. In principle, repayment of capital can only be requested after 10 years. However, the possibility of exiting the fund prematurely remains available, although this has extremely adverse tax consequences (tax rate of 33%). For more information on the tax rate, please refer to pages 22-23 of the prospectus.
• What is the tax basis? For payments made from 1 January 1993 onwards, the taxable income for the investor in the pension savings fund is equal to the net amount of the payments, capitalised at a flat rate of 4.75%, irrespective of the actual return achieved. Payments made before 1 January 1993 are capitalised at a rate of 6.25%.
• Tax when the pension is paid out: In accordance with the Star Fund investment policy, it is possible for the fund to invest more than 10% of its assets directly and/or indirectly in instruments that give rise to interest payments, as envisaged in EU Directive 2003/48/EC. An investor who is a natural person subject to personal income tax in Belgium and is acting within the context of the ordinary management of his/her private assets could therefore be subject to withholding tax (30%) upon the redemption (or liquidation) of his/her units. At present, Star Fund does not have to be regarded as an investment that gives rise to interest payments within the meaning of EU Directive 2003/48/EC. Consequently, no such withholding tax liability arises.
• Tax certificate: Every year, in the month of May, you will receive a tax certificate for the contributions you made in the preceding year. You can also download the certificate from Home’Bank, along with a number of other tax certificates.

Contact us online: www.ing.be/complaints, call us: +32 2 464 60 04 or send us a letter: ING Complaint Management, cours Saint-Michel/Sint-Michielswarande 60, 1040 Brussels.

Have you already been in touch with ING? You can also contact Ombudsfin, Nort Gate II, Avenue Roi Albert II 8, 1000 Brussels, call +32 2 545 77 70 or send an email to ombudsman@ombudsfin.be.