ING Direct 2009 Annual Report Download - page 49

Investment management
Key points
> Investor confidence and risk appetite
returned, resulting in strong rallies
in equity and credit markets
> Morningstar awarded three stars or
higher to 74% of ING’s mutual funds
in Europe and the Americas
> ING IM recorded assets under
management of EUR 343.2 billion
> Work commenced on the global
co-ordination of ING IM
Rising markets and improved economic conditions in the second
half of 2009 helped the asset management industry begin its
recovery from one of the worst periods on record in 2008. Industry
sales, assets under management and fee income all rose as equity
markets, in particular, bounced back from their lows in March
2009. ING Investment Management recorded improved business
activity from both retail and institutional clients.
FINANCIAL DEVELOPMENTS
Assets under management (AuM) were EUR 343.2 billion at
year-end 2009. Higher asset prices for equity and fixed-income
securities resulted in a EUR 42.2 billion increase in the period
together with a positive EUR 6.0 billion foreign exchange impact.
However, net outflows of EUR 13.3 billion and outflows of EUR 6.5
billion related to divestments subtracted from overall AuM.
ING INVESTMENT MANAGEMENT
ING Investment Management (ING IM) is the principal investment
manager of ING Group, excluding Real Estate. It helps ING deliver on
its strategy of helping customers to manage their financial future. In
2009, ING’s investment management business continued to pursue
its goal of becoming a top-tier investment manager. ING IM’s global
distribution reach and strong emerging markets presence, together
with its scale in fixed income, strong brand recognition and access
to a global network of ING channels continued to position ING IM
well in gaining new business as markets recovered. All three regions
– Europe, Americas and Asia/ Pacific – continued to focus on the core
strategy of delivering a wide range of investment strategies and
services to ING’s global network of businesses and third-party clients.
This was achieved by all three regions working closely together to
leverage scale, investment expertise and best practices, in order to
maximise cross-selling opportunities.
ING IM continued its solid performance in the institutional segment,
winning several major mandates. In contrast to 2008, the retail side
of the business picked up in the second half of 2009 with improved
assets under management and fee income. By the end of the year,
the investment management business delivered investment
performance with 48% of ranked third-party assets outperforming
their peer median on a three-year basis. Morningstar awarded
three stars or higher to 74% of ING’s ranked mutual funds in
Europe and the Americas.
A UNIFIED INVESTMENT MANAGEMENT STRATEGY
In 2009, as part of the Back to Basics programme, ING began work
on bringing together the three regional IM businesses under
one global leadership team.
Combining all three businesses in such a way allows for an
enhanced, unified strategy across the three regions and provides
further synergy opportunities in distribution and sales as well as in
the areas of manufacturing, operations and administration. (More
information in the Conclusions and Ambitions section at the end of
this section).
Assets under management by manager
Assets under management by client category
in EUR billion
Investment Management
Europe 41.1% 141.0
Investment Management
Americas 41.6% 142.9
Investment Management
Asia/Pacific 17. 3% 59.3
Total 100% 343.2
in EUR billion
General account assets 36.1% 124.0
Life insurance
policyholders 10.5% 36.0
Third party 53.4% 183.2
Total 100% 343.2
Towards Top-Tier Performance
ING Group Annual Report 2009 47