ING Funds Launches Principal Protection Fund III
PRNewswire
Mar 1, 2002
SCOTTSDALE, Ariz., March 1 /PRNewswire-FirstCall/ ING Funds, the retail mutual fund unit of ING U.S. Financial Services, announced today the launch of the ING Principal Protection Fund III (IPPF III), a mutual fund with a period of guarantee of principal.
"The ING Principal Protection Fund III is designed for investors seeking long-term growth, plus a period of guaranteed downside protection," said Bob Boulware, president of ING Funds Distributor, Inc., distributor for the fund. "For investors who want to remain invested for five years, this fund provides an opportunity to participate in potential stock market growth while protecting their principal for a period. Based on the success of ING's first two guaranteed principal offerings, there is no shortage of investor interest in this kind of investment vehicle."
The offering period of IPPF III begins March 1, 2002, and runs through May 30, 2002. The fund is open to investors only during this three-month offering period. A quiet period follows the offering period, which runs from May 31, 2002, through June 5, 2002, during which no new deposits will be accepted. During the quiet period, assets will remain invested in short-term investments allowing time to permit settlement of funds. The period of guarantee of principal -- less sales charges and certain fund expenses -- is backed by MBIA Insurance Corp., an AAA-rated monoline insurer.*
The five-year guarantee period follows the quiet period and runs from June 6, 2002, through June 5, 2007. Throughout the guarantee period, the net asset value (NAV) of the fund may rise and fall. At the end of the guarantee period, shareholder account values are guaranteed to be no less than their account value based on the NAV on the last day of the quiet period, less certain fund expenses, provided shareholders made no transfers or redemptions, and reinvested all dividends and capital gains distributions during the guarantee period.**
The new fund follows two prior principal protection funds offered through the former Pilgrim Funds, which were renamed ING Funds effective March 1, 2002. The first two funds drew a combined total of about $1.3 billion in assets during their respective offering periods last summer and earlier this year.
"Due to the extended bear market and investors' increasing appetite for more conservative investment alternatives, the first and second principal protection funds were highly appealing," said Jim Hennessy, president and CEO, ING Funds. "The ING Principal Protection Fund III is another excellent opportunity for investors to take a long-term approach and seek growth potential with a period of limited downside risk."
At the end of the guarantee period, investors may choose to keep their balances invested in IPPF III, exchange assets into the same share classes of other ING Funds, or receive their IPPF III account balances in cash. An exchange or redemption may trigger a taxable event or be subject to a contingent deferred sales charge (CDSC) schedule.
ING Investments, the fund's adviser, has engaged Aeltus Investment Management, Inc., to serve as the investment sub-adviser to the fund's portfolio. Aeltus is a wholly owned subsidiary of ING Group N.V. and is an affiliate of ING Investments.
IPPF III is managed by a team of portfolio managers. Mary Ann Fernandez, senior vice president and portfolio strategist, Aeltus, is responsible for overall fund strategy and optimal asset allocation based on a proprietary financial model; Aeltus portfolio managers Hugh T. Whelan and Douglas E. Cote co-manage the equity component of the fund. The fixed income component is managed by a team of fixed income specialists from Aeltus. Minimum investment is $1,000.
"The fund's strategy during the guarantee period is to allocate assets between equity and fixed income securities, seeking to participate in favorable equity market conditions while preserving at least the principal amount of the fund as of the inception of the guarantee period, and keeping in mind the obligation to provide investors a return of at least their guaranteed amount at the end of the five-year guarantee period," Fernandez said.
IPPF III launches with extensive educational and marketing support for investment professionals, with materials that can be tailored to include the broker/dealer's contact information, including advertising templates, statement stuffers and a prospecting letter.
As of December 31, 2001, ING Investments, LLC and Aeltus Investment Management, Inc. managed more than 60 open- and closed-end retail funds with total assets under management of $35 billion for clients including financial institutions, corporations and individual investors. ING Investments, LLC, and ING Funds Distributor, Inc., are subsidiaries of Amsterdam-based ING Group N.V. (NYSE: ING), one of the world's leading financial services companies with banking, insurance and asset management operations in 65 countries.
A prospectus containing more complete information about the Fund, including charges, fees, risks and expenses, may be obtained from ING Funds Distributor, Inc., at 800-992-0180 (shareholder services) or 800-334-3444 (investment professionals). Please read it carefully before you invest or send money.
* The MBIA rating applies to MBIA's financial and claims-paying ability,
not to the safety or performance of the mutual fund shares.
** When you hold your investment until the end of the 5-year Guarantee
Period, on the Guarantee Maturity Date your account will be worth no
less than your investment at the end of the Quiet Period, less any
sales charges, and redemptions and distributions you have received in
cash, and certain Fund expenses, such as interest, taxes and
extraordinary expenses. If you choose to redeem your investment at the
Guarantee Period's end, the principal amount returned could be less
than that invested. During the Guarantee Period, investors pay a fee
equal to 0.33% of the Fund's average daily net assets for the
guarantee, which is included in the Fund's total operating expenses.
If you sell shares during the Guarantee Period, shares are redeemed at
the current NAV, which may be more or less than your original
investment and/or the NAV at the inception of the Guarantee Period.
The guarantee is based on the NAV on the last day of the Quiet Period,
not POP, and does not apply to any earnings realized during the
Guarantee Period. As with the sale of any securities, a taxable event
may occur if the Fund liquidates fixed income securities at the end of
the Guarantee Period. As with any investment in stocks and bonds, the
Fund is subject to market risks.
Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, (ii) performance of financial markets, (iii) interest rate levels and (iv) increasing levels of loan defaults.
SOURCE: ING U.S. Financial Services
Contact: Dana E. Ripley of ING U.S. Financial Services, +1-770-980-3317,
or cell, +1-404-202-6679
Website: http://www.ing-usa.com/