Private Banking Luxembourg ING Private Banking, protecting, increasing, and transferring your wealth

ING Private Banking Luxembourg benefits greatly

In Luxembourg, we offer private banking services in

from knowledge, human resources, technology and

nine regional centres around the country. This allows

financial strength of the Group.

us to establish a close relationship with each of our clients.

Our expertise lies in putting these benefits to work for the protection, management and transmission of your wealth – in a personalised way. We are deeply conscious that your personal and family situation, expectations, desires and goals are individual and unique.

Wealth management: performance, risk, and duration

Wealth management is a complex business. Economic

Your involvement

globalisation, the volatility of financial markets, the

ING Private Banking Luxembourg offers two types of

multiplicity of financial instruments – not to mention

management depending on how much you want to

tax matters – are just some of the factors that

be involved in the management of your investment

contribute to this complexity.

portfolio.

That’s why turning to professionals makes sense. Before we do anything else, we ask two important

Discretionary management

questions:

You delegate by contract the responsibility for all

- How will your portfolio be structured (what we call

decisions regarding your portfolio management to

the “strategic asset allocation”)? - How much involvement do you wish to have in the management of your portfolio?

ING Private Banking Luxembourg. This method of portfolio management is the best way for you to capitalise on the knowledge, experience and resources of our portfolio managers and the

Asset allocation and risk profile

investment analysts who assist them. In effect, you

This first decision is the most important.

authorise us to make quick and efficient investment

It is vital to determine your “risk profile”, in order to

decisions based on our market insights and research,

judge how much of your portfolio should be invested

while remaining within the boundaries of your risk

in equity-based securities, in fixed income securities

profile.

and in other asset classes such as hedge funds or real estate.

ING Private Banking Luxembourg practises active

Advisory management

portfolio management with the aim of delivering

You mandate ING Private Banking Luxembourg to

performance superior to the relevant reference

track the development of your investment portfolio

benchmark for each risk profile. We attach great

and to provide advice on its management. In this

importance to the principle of reducing risk through

case, no action is taken without your specific

appropriate portfolio diversification.

instruction.

Discretionary Portfolio Management is offered

This method of management is very flexible, allowing

according to two different approaches: ‘absolute

you to keep total control over each element of your

return’ or ‘relative return’.

portfolio, while benefiting from the proactive advice

The absolute return approach does not refer to an

of a designated portfolio manager.

index but aims to realise a positive performance,

It is up to you how, and how often, you wish to have

independent of the fluctuations of the markets, be

contact with your investment advisor. Face-to face,

it up or down. On the contrary, relative return is

telephone – he or she will adapt to your preferred

measured to an index and the aim is to outperform

way of communicating.

through tactical over - or underweights. This way the performance is dependent on the positive or negative fluctuations of the markets. ING Private Banking Luxembourg proposes both approaches.

Open architecture: in search of excellence

The sheer complexity and variety of financial markets

Our ING Third-Party Funds team based in Luxembourg

is such that no single financial institution – even one

has 15 financial markets specialists. Their job is to

as large and powerful as ING – is able to be

analyse thousands of funds managed by other banks

simultaneously the best manager in all asset classes.

and investment companies, covering a very broad range of investment classes.

That is why for a number of years we have successfully adopted an internal organisational model

In short, qualitative analysis is an art in itself,

known in the business as “open architecture”. In

requiring great skill and experience, analytical rigour

other words, for certain types of investments and

and a never-ending commitment to the search of

asset classes, we use the investment funds of other

excellence.

banks and investment companies as part of our portfolio management process, if they perform better than our own funds.

Credits, our made-to-measure solutions

At ING Private Banking Luxembourg we understand

Whether you require finance for a real estate

that portfolios can benefit from the careful use of

investment in Luxembourg or overseas, or should you

leverage in the form of debt finance. We also

wish to buy shares (either listed or in your business),

understand that even though you have large amounts

options, art or any other investment purposes, we will

of capital at your disposal, it is not always available

make our best efforts to find the financing solution

precisely when you want to take advantage of an

that suits you best.

opportunity. And we will do go quickly, because we recognise that Our concept of private banking includes the capacity to provide credit to our clients when the situation requires it - whether for traditional purposes or under special circumstances. Let us prove it to you.

good opportunities do not wait for long.

Wealth structuring and inheritance planning

Think in the present...

ING Private Banking is qualified to assist and advise

The manner in which you structure your wealth, and

you in these matters.

your place of residence, together have a major impact on the tax you pay on your capital and income.

We have many tax lawyers on our Wealth Analysis

In the same way, the ownership structure of your

and Planning team in Luxembourg and elsewhere.

wealth and investments could allow you to split

Their mission is to help your private banker pan your

up their legal ownership and control, or make use

estate, in order to protect and maintain your wealth

of legal constructions such as usufruct or “bare

for future generations. Our Wealth Analyses and

ownership”.

Planning team creates a link between your other tax and legal advisors and your investments, and provides

... and prepare the future

expert opinion from the viewpoint of a professional

Several factors can affect the finances of those who

financial practitioner.

inherit from you, depending on your personal situation: your marriage contract, the composition of your

Needless to list the opportunities offered by

family, your life insurance arrangements and your will

Luxembourg in this context. Banking secrecy and

can all have a big impact.

Luxembourg government’s pragmatism represent important advantages to optimise your patrimony management.

The key points of your wealth structuring structure and inheritance planning

Personal

Wealth and wealth ownership and control structures

- Nationality

- Composition of wealth

- Place of residence

- Legal ownership

- Children, both adult and underage

- By a physical person

- Marriage contracts and the implications for

- By a company

surviving spouses and legal heirs - Current legal status of household (married, unmarried, etc)

- By a trust or foundation - Sole or co-ownership of real estate - Usufruct and bare ownership - Art investments

Family business - Ownership and legal rights

Donations and Bequests

- Participating and non-participating family members

- Using your will as a succession planning tool

- Dealing with the perennial problem facing family-

- The consequences of not making a will

owned businesses: how to reconcile the need to

- The tax regime applying to donations

make decisions with the legal rights of family

- The tax regime applying to inheritance

members?

- The advantages of life insurance - Charity

Private Banking Centers in the Grand Duchy of Luxembourg

Luxembourg-City

Echternach

- PB House

10, place du Marché L-6460 Echternach

48, route d’Esch L-2965 Luxembourg - Siège 52, route d’Esch L-2965 Luxembourg - Alfa 14, place de la Gare L-1616 Luxembourg - Grand-Rue 42, Grand-Rue L-1660 Luxembourg

Ettelbruck 17, Grand-Rue L-9051 ettelbruck Strassen 104, route d’Arlon L-8008 Strassen Troisvierges 12, rue de Binsfeld L-9912 Troisvierges Wiltz 6-7, avenue G.D. Charlotte L-9515 Wiltz

Private Banking 48, route d’Esch L-2965 Luxembourg T +352 44 99 1 94 13