ING Direct 2011 Annual Report Download - page 58

In 2011, the percentage of ING IM’s funds which have 3 stars or
more from Morningstar fund ratings agency (in Europe and the US)
improved to 73%, higher than the industry average of 68%.
FIXED INCOME STRATEGIES
Emerging Market Debt (EMD) continued to be one of the main
focus points of ING IM’s investment strategies. In 2011, ING IM
strengthened its presence in the EMD asset class with the launch
ofthe ING (L) Renta Emerging Markets Corporate Debt fund. This
fund gives investors exposure to corporate debt investment
opportunities in emerging countries.
ING IM has one of the longest EMD track records in the industry,
managing EMD Hard Currency since 1993, EMD Local Currency
since 1998 and EMD Corporate since 2003. In the second half of
2011, ING launched the ING Patrimonial Emerging Markets Debt
Opportunities fund. This fund of funds structure provides access
toa strategic but flexible mix of emerging market debt.
The Emerging Market Asian Debt team, which has been based in
Hong Kong for the past few years, was consolidated with the
existing fixed income team based in Singapore in October 2011
topool expertise and strengthen operations.
In the Netherlands, ING IM broadened its core fixed income fund
range with the launch of the ING Covered Bond Basis fund in April.
Since its launch, the fund has recorded EUR 1.4 billion of inflows.
In Thailand, ING Funds Thailand’s fixed income managers have been
ranked in the Top 10 Most Astute Investors in the Asian Currency
Bond sector by The Asset magazine for two consecutive years.
ING IM ASIA/PACIFIC
ING IM Asia/Pacific continued to focus on developing and launching
emerging markets focused funds. It launched the first China leverage
fund in South Korea and in Japan it launched the new ING Turkey
Equity Fund, which along with the existing Indonesia Equity Fund,
offer exposure to key non-BRIC emerging markets.
ING IM Asia/Pacific pitched for new business in the increasingly
attractive market for government pension and sovereign wealth
funds, and won, among others, an on-shore equity mandate from
one of the largest government pension funds in Taiwan.
ING IM Asia/Pacific further developed distribution relationships. It
commenced fund distribution through Citibank in Japan, which is
akey strategic relationship partner for the business in Asia.
ING IM EUROPE
In the first half of the year, ING IM Europe won a mandate to
provide an integrated client solution package to a major Dutch
insurance company. This solution provides strategic asset allocation,
risk monitoring and balance sheet analysis taking into account
Solvency I and II requirements for life and non-life insurers. This
solution is an asset management platform developed by ING IM
Europe for tackling the challenges posted by the Solvency II
directive for insurance companies.
ING IM continues to invest in best-in-class IT systems so that it can
continue to operate effectively in dynamic and increasingly complex
financial markets. In Europe, the business signed a contract to
implement the BlackRock Aladdin IT platform system. The Aladdin
platform combines different functional areas in one integrated
platform, covering among other things, portfolio management,
position keeping, risk management tooling, static data
management, compliance set up, and trading. This system will
further improve ING IM’s capabilities to service new and existing
clients, and it will enhance data quality of the data used. It will
enable portfolio managers to concentrate more on delivering
excellent investment performance.
ING IM US
In 2011, ING IM US continued to build strong long-term investment
performance across all platforms despite market volatility, the
eurozone crisis and the uncertainties of the US economic recovery.
The group also continued to deliver strong investment income
results to the US General Account and added over USD 6 billion
innet new assets in 2011 exclusive of market performance.
The collaboration with ING’s US retirement businesses enhanced
relationships with key pension consultants, plan sponsors and
financial intermediaries. The work with the retirement and annuity
businesses also resulted in the transition of more than USD 3 billion
in assets from outside sub-advisers to ING IM managers. In
addition, efforts continued to build and strengthen the Institutional
and Intermediary distribution organisations in anticipation of
increased activity in 2012.
ING IM US has organisationally realigned back into ING US while
preserving strong commercial partnerships with ING IM in Europe
and Asia. As part of the separation of ING IM into two businesses,
IM US’s Senior Loan platform team will open a London office.
USbased Pomona Capital will open offices in Hong Kong and
Australia, while the US-run sections of the Emerging Market Equity
and Emerging Market Debt investment teams will come under the
direction of ING IM in Europe and Asia. Several late-year deals,
finalised by the US-based Mortgage Investment Fund, sourced out
of Asia, proved that the different parts of the organisation
continued to work closely together during the separation process.
CONCLUSIONS AND AMBITIONS
In 2012, ING IM will continue to focus on delivering best-in-class
performance and services for its customers.
On 12 January 2012, ING announced an update on the
restructuring of the insurance and investment management
businesses. Due to the uncertain economic outlook and volatile
markets, especially in Europe, ING has decided to review other
strategic options for its Asian Insurance and Investment
Management businesses. Within ING IM, ING IM Europe, ING IM
Asia/Pacific and ING IM US will continue to operate in partnership
to ensure continued commercial collaboration and cross-selling
arrangements among the regional ING IM businesses.
During this period of change, ING’s investment management
business will remain focused on delivering excellent service,
generating superior returns and providing a broad range of
products and investment solutions in a wide variety of asset
classesfor its clients.
56 ING Group Annual Report 2011
Investment management continued