The sustainable investor for a changing world
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Sustainable Pension Investing in Belgium

 

The importance of a good income after retirement speaks for itself. Preparing a ‘good pension’ is different for every person.

BNP Paribas Asset Management offers three pension products, each with a different risk profile (Stability, Balanced and Growth). Investors can select the product that fits best to their age, knowledge, experience, goals and needs.

Why Pension Investing?

A carefree pension is everyone’s dream. If we look to today’s situation:

  • Average pension for each employee in Belgium: EUR 1312 net per month (source: Knack 01/2020)
  • Average pension date in Belgium in 2019: 65 year (source: Rijksdienst for pensions)
  • Average life expectancy Belgium population in 2019: 82 year (source: Statbel 7/2019)
  • Average cost retirement home in Belgium: EUR 59 per day/EUR 1770 per month (source: Agentschap Zorg & Gezondheid (01/2020))

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Why should young people consider to start investing for their pension now?

The world is changing as well as the pension landscape. Today people who retire receive a good monthly pension but changes are underway. Recently the age of retirement changed from 65 into 67 years. Legal pension conditions are under construction and the population is aging.

What will the future look like for young people when they are 65 years old?

  1. Interest capitalisation;
  2. Investors could choose their own ‘investment rhythm’
  3. Yearly fiscal advantage;
  4. Local sustainable impact.

Pension system in Belgium

The system is built on four pillars:

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BNP Paribas B Pension Sustainable Range belongs to Pillar 3

  • Combines direct tax benefit and the perspective of a potential financial comfort at retirement age
  • Potential tax benefit of 25% or 30% per year

Investments needed to ensure that we can enjoy our old age

Featured solutions

Pension savings product offer at BNP Paribas Asset Management:

BNP Paribas B Pension Sustainable Range

Three profiles:

The BNP Paribas B Pension Sustainable Range in a nutshell:

Multi-Asset product Profiled investment Active asset allocation
Invested in the main asset classes (equities, bonds, cash), with a European focus Suitable for all investor profiles:
Stability (25-35% equities)
Balanced (45-55% equities)
Growth (65-75% equities)
Active management, limited by strong regulation following a “Quantamental” investment process
Sustainability Optimisation Main investment characteristics*
Full integration of ESG** criteria
Strict exclusion policy towards Sustainability Label
Active management integrated into a portfolio construction tool able to incorporate constraints Mainly direct lines
Derivatives only for FX hedging
Max 20% non EUR exposure
Min 80% of equity part in Europe
Strong European small caps and Belgian biases

* Some of the above guidelines are internal guidelines mentioned for information purposes only and may be subject to change without notice. Please refer to the Prospectus and KIID guidelines for further information. Source: BNP Paribas AM, 31/12/2020.

** Environmental, Social and Governance

Sustainability – Febelfin

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Label awarded in Brussels on October 30, 2020 by the Central Labeling Agency and valid until end of June 2022 (subject to intermediate revision). More information on the label, see www.towardssustainability.be. Obtaining this label by the compartment does not mean that it meets your own sustainability objectives or that the label meets the requirements of future national or European rules. For more information on this subject, see www.fsma.be/fr/finance-durable.

SFDR classification

Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector, also known as the “Sustainable Finance Disclosure Regulation” (SFDR), provides for different types of investment according to their sustainability:

– UCIs with a sustainable investment objective (UCIs also referred to as “Article 9 products”); and
– UCIs that promote, among other characteristics, environmental and/or social characteristics, and invest in companies that apply good governance practices (UCIs also referred to as “Article 8 products”).
BNP Paribas B Pension Sustainable products are classified as an “Article 8 product” according to SFDR.

Why us?

BNP Paribas Asset Management is a recognized asset manager in Belgium in the pension investing area.

Our dedicated teams draw on our extensive research capabilities and investment expertise to offer an innovative range of pension products that target two key areas: sustainability and active asset allocation.

In line with our wider investment philosophy, all our pension products seek to deliver long-term sustainable investment returns.

Performance overview:

Risks:

Credit risk: risk of deterioration of an issuer’s signature or of its inability to honor its commitments (default), which could lead to a drop in the value of the bonds in which the product is invested.

Liquidity risk: results from the difficulty in selling a security at its fair value and within a reasonable period of time due to a lack of buyers.

Currency risk: results from the presence of assets denominated in currencies other than the reference currency.

Inflation risk: results from the fact that the returns on short-term investments do not evolve at the same rate as inflation, thus leading to a reduction in the purchasing power of investors.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.


DISCLOSURES

BNP PARIBAS ASSET MANAGEMENT Belgium is a management company of investment funds and manager of alternative investment funds registered with the Financial Services and Markets Authority, incorporated as a société anonyme/naamloze vennootschap and with registered office at Rue du Progrès 55, 1210 Brussels, Belgium.

This advertisement is issued by BNP PARIBAS ASSET MANAGEMENT Belgium. Investors considering subscribing for the financial instruments should read the most recent prospectus or Key Investor Information Document (KIID) available free of charge in French and Dutch from BNP Paribas Fortis S.A., Montagne du Parc 3, 1000 Brussels or on the website. Opinions included in this advertisement constitute the judgement of BNP PARIBAS ASSET MANAGEMENT Belgium at the time specified and may be subject to change without notice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance.