With Investors Seeking Investment Guarantees -- ING Funds Launches ING Principal Protection Fund IV
PRNewswire-FirstCall
SCOTTSDALE, Ariz.
Jul 1, 2002
With investor interest in more conservative investment vehicles on the rise, ING's U.S. financial services operations announced today that its retail mutual fund unit, ING Funds, has launched the ING Principal Protection Fund IV (IPPF IV), a mutual fund with a period of guarantee of principal. ING's three previous Principal Protection Funds, each with a three month offering period, have attracted nearly $2 billion in assets.
"The remarkable success of ING's Principal Protection Funds is clear evidence that investors are adapting to the realities of our current investment environment," said Bob Boulware, president of ING Funds Distributor, Inc., distributor for the Fund. "Today, investors are allocating a larger percentage of their overall investment portfolio to products that have embedded guarantees. As a customer-focused financial services organization, ING is committed to meeting the needs of current and future shareholders."
The offering period of IPPF IV begins July 1, 2002, and runs through Sept. 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 Oct. 1, 2002, through Oct. 7, 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 Oct. 8, 2002, through Oct. 8, 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.**
"With all the pressure on the market today, the value of investment guarantees cannot be underestimated," said Jim Hennessy, president and CEO, ING Funds. "IPPF IV offers a high degree of safety in an investment vehicle for investors who have assets on the sidelines. For the five-year guarantee period, there is the potential to enjoy upside gain without the concerns of the initial investment eroding due to sluggish market conditions. ING has been a leader in developing and distributing mutual funds that are very attractive when there is uncertainty in the marketplace."
At the end of the guarantee period, investors may choose to keep their balances invested in IPPF IV, exchange assets into the same share classes of other ING Funds, or receive their IPPF IV 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, LLC, 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 Groep N.V. and is an affiliate of ING Investments.
IPPF IV 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.
IPPF IV 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 March 31, 2002, ING Investments, LLC and Aeltus Investment Management, Inc. managed more than 60 open- and closed-end retail funds with total assets under management of $59.2 billion for clients including financial institutions, corporations and individual investors. ING Investments, LLC, and ING Funds Distributor, Inc., are subsidiaries of Amsterdam-based ING Groep N.V.
ING's U.S. financial services operations (http://www.ing-usa.com/ ) offer a comprehensive array of products and services, including life insurance; fixed and variable annuities; retirement programs; employee benefits; and mutual funds, through a variety of distribution channels. ING U.S. Financial Services is part of Amsterdam-based ING Groep N.V. (NYSE: ING), one of the largest integrated financial services organizations in the world.
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.
CONTACT: Dana E. Ripley of ING U.S., +1-770-980-3317 or cellular,
+1-404-202-6679
Web site: http://www.ing-usa.com/