ING Direct 2009 Annual Report Download - page 50

Investment management (continued)
In Latin America, ING Investment Management continued to gain
momentum. ING now has a 32% share of the market in Peru in
terms of assets under management, 22% in Chile, 18% in Uruguay
and 12% in Mexico and Colombia. These sizeable market positions
are a result of ING being the second largest pension provider in
Latin America.
ING IM Asia/Pacific
Despite the uncertain economic climate, ING IM Asia/Pacific was
successful in booking significant new and prestigious institutional
mandates regionally and locally in markets such as Taiwan,
Australia, Malaysia, the Philippines and Japan. These wins included
ING IM’s first offshore equity mandate from a local government
pension fund in Taiwan, and a EUR 67.9 million mandate for a
Shariah compliant global equity portfolio from a key client in
Malaysia. Institutional AuM in Asia Pacific rose by 7.1% over 2009.
On the retail front, major fund launches included a US Bond fund
in Taiwan, which, pre-launch, raised over EUR 113 million. In Hong
Kong, the number of locally registered funds rose by 12, in Taiwan
by five and in Singapore up by 24, as a result of expansion into
local retail markets. Wholesale AuM in the region grew by 9.2%
over 2009.
In 2010, ING IM will focus on further developing its offshore funds
sales throughout Asia, bringing the company’s global capabilities to
local markets. This will complement retail market development in
targeted countries including Hong Kong and Singapore.
CONCLUSIONS AND AMBITIONS
ING IM is committed to delivering top-tier investment performance
in each of its three regions. Investment management provides ING
with solid growth opportunities both through affiliated ING
channels and through retail and institutional third-party business.
ING Investment Management has a significant global presence
through its broad offerings of a diversified mix of products with
solid performance in all three regions.
In 2010, ING’s investment management businesses will begin
to be managed under a global leadership team, recognising the
importance of a strong local presence in regions and markets
in Europe, the Americas and Asia/Pacific.
The leadership team will principally focus on improving
performance across all asset classes, enhancing risk management,
exploiting synergies between the regional ING IM businesses,
and upgrading systems and infrastructure.
In 2010, as a result of ING’s plans to split its banking and insurance
operations, ING IM will form part of ING Insurance (see Strategy
Chapter). During this period of change, ING’s investment
management businesses will remain, as ever, focused on meeting
client needs and on generating alpha (above market returns).
ING IM Europe
ING IM Europe continued to implement a multi-year investment
programme in its business. The focus on 2009 was on creating
extra capacity to take on new business and to boost its existing
investment management operations. In order to create this extra
capacity, the investment management operations for the Benelux
were centralised in the Netherlands. Additionally, further measures
were taken to increase the efficiency of the organisation.
The business development programme has allowed ING IM to
invest in significantly improving its investment performance,
enhancing the IT & Operations infrastructure and most
importantly, Risk Management.
As part of this focus ING IM Europe transformed to a skill-based,
multi-boutique structure. These specialist investment teams help
produce an accountable and entrepreneurial culture in the pursuit
of top quartile, consistent returns. There was a significant
improvement in investment performance and an increase in the
number of funds awarded with 4 or 5 star ratings by Morningstar.
ING IM Europe’s business developed well, especially the pension
fund business in Central Europe. The industry as a whole and IM
Europe witnessed a major move by investors to Money Markets
in the first half of the year. In the second half of the year, rerisking
enabled ING IM to develop its institutional mandate business
further. Additionally, the number of distributors of ING IM’s
Luxembourg domiciled funds rose, thereby giving a boost to
the business’ expansion beyond Europe’s borders.
ING IM Americas
A pick-up in US economic activity and positive corporate earnings,
particularly in the second half of of 2009, improved the market
outlook and helped to increase both retail and institutional sales.
On the investment front, the equity investment team produced
stronger longer-term performance, which resulted in increased
search inquiries from asset management consultants, especially
later in the year. The fixed income teams produced strong returns
for ING’s insurance affiliates and continued to make good progress
in boosting track records in mutual fund and institutional fixed
portfolios.
The retail business saw improved AuM and fee income with the
recovery in the markets. A major new distribution partner was
added, which has the potential to significantly boost future sales.
In addition, there were a number of new product placements
during the year, involving the Alternative Beta Fund, the Global
Real Estate Fund, and US REIT SMA.
The institutional business increased its focus on new business
development in addition to ongoing client-retention efforts.
This strategy worked well, with inflows improving as the year
progressed, and with notable flows into emerging market debt,
senior loan and stable value strategies. ING IM Americas continued
to work closely with ING’s US retirement services business, and as
a result the partnership won a significant Index Target Date
mandate from the Oklahoma Teachers Retirement System.
1.2 Report of the Executive Board
ING Group Annual Report 2009
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