ING Direct 2011 Annual Report Download - page 57

1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information
> Assets under management (AuM)
of EUR 321.7 billion
> 72% of AuM above three-year benchmark
> Measures implemented to align with the
divestment of Insurance/Investment
Management
In 2011, ING Investment Management (ING IM) continued to
enhance its investment capabilities. ING IM used its investment
expertise and strengths in products and distribution to deliver
best-in-class performance and services for its customers.
FINANCIAL DEVELOPMENTS
Assets under management (AuM) at ING Investment Management
(ING IM) increased 3.8% to EUR 321.7 billion from EUR 309.9
billion at year-end 2010. The AuM balance excluded assets
managed by ING IM Australia (EUR 22.3 billion) which was sold on
4 October 2011. Inflows in the institutional and proprietary
segments were partly offset by outflows in the retail segment.
The underlying result before tax increased 36.0% to EUR 204
million and the operating result increased 34.2% to EUR 193
million. Both increases were largely attributable to higher fee
income in line with the increase in assets managed.
Fees and premium-based revenues increased 5.1% to EUR 868
million from EUR 826 million in 2010 supported by an increase in
assets managed. The annualised fourth quarter ratio of fees to
average AuM decreased to 27 basis points compared with the
previous year at 29 basis points partly due to a change in the
underlying asset mix. This ratio is calculated using an average of
opening and closing AuM balances for the period.
Administrative expenses were 0.8% lower than the previous year
mainly due to staff reduction and a non-recurring expense
reduction from a change to the IM US pension plan.
BUSINESS DEVELOPMENTS
ING IM is the principal investment manager of ING Group with
activities in Europe, Americas, Asia Pacific and the Middle East.
In preparation for the divestment of ING Insurance/IM, ING IM
Europe & Asia and ING IM US have been operating on an arm’s-
length basis from 2011, sharing fees and leveraging global client
relationships. These cross-selling relationships will continue and
develop into preferred provider relationships to service clients with
a full range of global solutions.
ING IM announced the divestments of ING IM Philippines at the
end of 2010, and ING IM Australia in June 2011. The sale of ING IM
Philippines was closed in March 2011 and the sale of ING IM
Australia was completed in October 2011. These transactions were
in support of ING’s objective to manage its capital and portfolio of
businesses in preparation for the divestment of the insurance and
investment management business.
ING IM provides a wide variety of actively-managed strategies,
investment vehicles and advisory services in all major asset classes
and investment styles. It delivers a wide range of investment
strategies and services to ING’s global network of businesses and
third-party clients.
IMPROVING PERFORMANCE
Despite the market circumstances, ING IM’s performance has
improved in all client categories: general account (ING Insurance),
affiliated distribution (business sold via ING channels) and third-
party retail and institutional.
55ING Group Annual Report 2011
Investment management