ING Direct 2007 Annual Report Download - page 28

Insurance Europe 24% 154.5
Insurance Americas 33% 213.2
Insurance Asia/Pacific 16% 98.7
Wholesale Banking 11% 67.4
Retail Banking 15% 93.8
ING Direct 1% 9.3
Total 100% 636.9
Insurance policy holders 19% 122.4
Institutional clients 24% 153.3
Retail clients 18% 116.4
Private banking clients 11% 68.0
Proprietary 28% 176.8
Total 100% 636.9
A
ssets under management increased
EUR 36.9 billion (6.1%) to
EUR 636.9 billion. Growth was
driven by a net infl ow of EUR 40.4 billion,
mainly through Insurance Asia/Pacifi c which
contributed EUR 14.2 billion, Retail Banking
EUR 8.6 billion, Insurance Americas EUR 8.5
billion and ING Real Estate EUR 6.6 billion.
Changed asset prices of equity and fi xed
income securities contributed EUR 16.2
billion. The positive impact of acquisitions
and divestments was EUR 12.7 billion.
Growth was offset by the negative impact
of exchange rates of EUR 32.5 billion.
Growth was mainly achieved in third-party
assets, which increased by 13.8% to
EUR 460.1 billion. Proprietary assets
decreased 9.6% to EUR 176.8 billion.
Sound investment performance
at ING Investment Management
ING Investment Management (ING IM),
ING’s principal asset manager, delivered
sound investment performance in 2007.
On a three-year basis, 77% of our mutual
fund assets performed above their
benchmark and, compared with peers,
60% of funds ranked in the fi rst or second
quartile. 35% of our ranked mutual funds
assets received 4 or 5-star ratings from
Morningstar ratings agency.
We successfully continued our strategy of
leveraging our strong global investment
capabilities to provide regional
opportunities for both retail and
institutional customers.
Close cooperation between ING IM Europe
and ING IM Asia/Pacifi c created net infl ows
of some EUR 2.2 billion in several fi xed
income-related mandates in Japan. The
global manufacturing of some of ING IM’s
fi xed income fl agship investment strategies
generated regional and cross-regional sales
of EUR 4.3 billion.
The growth in alternative asset classes,
combined with the needs of ING IM’s
clients led to a continued focus in this area
during the year. Pomona Capital, ING IM’s
private equity fi rm, introduced its fi rst Fund
of Funds in the Asia-Pacifi c region.
ING IM Europe saw strong organic growth
in third-party assets, thanks to continued
sales of solidly-performing products, new
product launches and a trend towards
open architecture.
ING IM Americas maintained strong asset
management sales fi gures while targeting
growth opportunities by launching new
funds, despite market challenges,
particularly later in the year.
ING IM Asia/Pacifi c saw strong organic
growth in assets in every country where it
operates, driven by infl ows from institutional
and retail clients, and market performance.
We maintained our position as a top-3
investment manager in the region.
Asset management is a core competency
of ING and consists of three key businesses:
ING Investment Management, ING Real
Estate and ING Private Banking.
Assets under management
by business line
in EUR million
Assets under management
by client category
in EUR million
26 Our performance
Asset management
ING Group Annual Review 2007