Low expected return from ABN AMRO Profile Fund 1

ABN AMRO Profile Fund 1* to be stopped within Guided Investing

Read what this means for your situation

You have received a bank mail to inform you that we stop offering Profile Fund 1* in Guided Investing. After deducting the costs you pay for Guided Investing, this can have a negative impact on your return. As we are also simplifying our product offering in Guided Investing, we have decided to stop offering Profile Fund 1 in Guided Investing. If on the 30th of November you are still investing in Profile Fund 1, we will sell your investments against the applicable exchange rate for that day. Please note: keep in mind that the handling time of an order can take up to maximum 4 days. On this page you will read more on the alternatives you can choose for Profile Fund 1.

*The name of this profile fund has changed on the 15th of October 2022. The fund is now named ABN AMRO ESG Profile Fund Very Defensive.

 

Low expected return

You have a Guided Investing account with which you invest or perhaps want to invest in Profile Fund 1. This fund mainly consists of bonds and liquidities. The historically low interest rates have consequences for the expected return on these investment products. This profile fund has been delivering low returns for a long time. Returns may even be negative once the investment costs payable by you have been deducted. In view of this, and as part of our efforts to simplify our products, we have decided that offering Profile Fund 1 through Guided Investing is no longer appropriate.

Profile Fund 1 to be stopped

As we are predicting the expected returns for Profile Fund 1 will not improve in the coming years, we believe Profile Fund 1 within Guided Investing is no longer suitable. Since the 6th of July you as a new client can no longer select this Profile Fund. It is also no longer possible to select Profile Fund 1 if you would like to switch from another Profile Fund. If you are a client that is currently in Profile Fund 1, you have to make an alternative choice the 30th of November at the latest.

Choosing a good alternative within Guided Investing

Since you independently invest within Guided Investing, without the advice of the bank, we think it is important that you check for yourself if another profile fund is relevant for your personal situation.

In Internet Banking and the ABN AMRO app, you can see how close you are to your investment goal in the Guided Investing chart. You can also see the development under good, bad and normal conditions. You can adjust your target amount, (periodic) investment, end date or Profile Fund here. You will immediately see what an adjustment can mean with regards to achieving your goal. This can help you choose a good alternative within Guided Investing. The image below shows the return over the past 5 years. In this chart, you can see what € 1,000 invested on 1 January 2017 in 1 of the 5 funds would have yielded.

Guided Investing Returns Graph 2022

Source: ABN AMRO Investment Solutions, Morningstar Direct. Yields as at 31/12/2021, in euros and after deduction of fees. Net dividends reinvested (if applicable). Based on a geometrical calculation method. The value of your investments can vary. Past results are not indicative of future results.

Alternative possibilities

The possibilities available to you are explained below. If you make use of these possibilities, you will not pay any transaction costs.

  • You do nothing; in that case we will sell your investment in Profile Fund 1 on 1 December 2022 at the price applying on that date. We will credit the proceeds to your nominated account, and if you have set up periodic investing for this investment fund we will end this for you.
  • You decide the timing of the sale of your investment in Profile Fund 1. Important! Please do this at least four days prior to 30 November 2022 so that your order will be processed on time.
  • You can switch to one of the other five profile funds in Internet Banking. You can do this in the Guided Investing overview page in Internet Banking, under ‘Choose a profile fund’. Important! Please do this at least four days prior to 30 November 2022 so that your order will be processed on time.
  • Portfolio Management is possible from €50,000. The required initial investment for Portfolio Management is therefore higher than for Self-Directed Investing Basic (€50) or Guided Investing (also €50). With Portfolio Management, our experts take care of investing on your behalf. First read about the product details, terms and conditions and costs here.
  • If you want to continue to invest in ABN AMRO Profile Fund 1 after 30 November 2022, this will no longer be possible through Guided Investing. It will, however, be possible through Self-Directed Investing Basic. For information on how to switch, go to , scroll down to the section headed 'More information and conditions', select 'Switch to Self-directed Investing Basic' and read the information under 'Switch to Self Directed Investing Basic'.

For all investment types you pay costs, you can find these here.

Everything about the risks of investing

Investing involves risks, you may lose (part of) your investment.
Read all about investment risks.

What are your other options?

 

Save

You can always stop Guided Investing if you wish. Selling your Profile Fund is free of charge. You can put the money in a savings account. Keep in mind that interest rates are now very low and in some cases can even be negative. This depends on your personal situation.

Bank Savings

Is your investment goal, for example, ‘supplementing future assets’ for your pension? Then it may be worth considering whether bank savings for a pension supplement is relevant for you.

Portfolio Management

You want to invest some of your money, but would rather let experts do it? Your wealth specialist will guide you in every choice you make.

Save

You can always stop Guided Investing if you wish. Selling your Profile Fund is free of charge. You can put the money in a savings account. Keep in mind that interest rates are now very low and in some cases can even be negative. This depends on your personal situation.

Bank Savings

Is your investment goal, for example, ‘supplementing future assets’ for your pension? Then it may be worth considering whether bank savings for a pension supplement is relevant for you.

Portfolio Management

You want to invest some of your money, but would rather let experts do it? Your wealth specialist will guide you in every choice you make.