ING Direct 2009 Annual Report Download - page 157

2.1 Consolidated annual accounts
ING Group Annual Report 2009 155
Additional information to the consolidated balance sheet of ING Group (continued)
Collateralised debt obligations (CDO)-transactions
Within ING Group, SPEs are used for CDO transactions. In a typical CDO transaction an SPE is used to issue structured, rated securities
which are backed (or collateralised) by a pool of transferable debt securities. Besides investing in CDOs ING Group often has different roles
in these transactions:
the arranger of the transaction; ING Group structures the SPE, acquires the assets for the SPE and sells the CDOs to investors;•
collateral manager of the assets in the SPE; ING Group manages the assets based on strict conditions of the SPEs charter.•
ING Group receives market-rate fees for structuring, asset managing and distributing CDO-securities to investors. The total amount of
these fees is not significant.
ING Group as investor
As part of its investment activities, ING Group invests in securitisations by purchasing notes from securitisation SPEs. For certain own asset
securitisation programmes ING Group acts as a market maker and holds limited positions in this capacity.
Non-cash investments are made by ING Group by selling credit protection in the market using credit default swaps.
Other entities
ING Group is also a party to other SPEs used, for example, in structured finance and leasing transactions.
Investment funds
ING Group as fund manager and investor
ING Group sets up investment funds for which it acts as a fund manager and sole investor at the inception of the fund. Subsequently, ING
Group will seek third-party investors to invest in the fund, thereby reducing the interest of ING Group. In general, ING Group will maintain
a small percentage of interest in these funds. These funds are included in the consolidated financial statements of the Group if and when
control exists, taking into account both ING Group’s financial interests for own risk and its role as investment manager.
ING Group as fund manager
ING Group acts as fund manager for several funds. Fees related to these management activities are charged on an at arm’s-length basis. In
general, as a fund manager ING Group will hold these funds in a fiduciary capacity. These funds are therefore generally not included in the
consolidated financial statements of ING Group.
29 PRINCIPAL SUBSIDIARIES
The principal subsidiaries of ING Groep N.V. are as follows:
Companies treated as part of the banking operations
ING Bank N.V. The Netherlands
Bank Mendes Gans N.V. The Netherlands
ING Lease Holding B.V. The Netherlands
ING Corporate Investments B.V. The Netherlands
ING Vastgoed Management Holding B.V. The Netherlands
InterAdvies N.V. The Netherlands
Nationale-Nederlanden Financiële Diensten B.V. The Netherlands
ING Commercial Finance B.V. The Netherlands
Westland Utrecht Hypotheekbank N.V. The Netherlands
ING België N.V. Belgium
ING Bank Slaski S.A. Poland
ING Bank Deutschland A.G. Germany
ING Financial Holdings Corporation United States of America
ING Middenbank Curaçao N.V. Netherlands Antilles
ING Vysya Bank Ltd. India
ING Direct N.V. Canada, Germany, Spain, Australia,
France, United States of America,
Italy, United Kingdom
ING Bank A.S. Turkey