ING Funds Launches ING Principal Protection Fund V

PRNewswire
SCOTTSDALE, Ariz.
Nov 1, 2002

ING's U.S. financial services operations announced today that its retail mutual fund unit, ING Funds, has launched the ING Principal Protection Fund V (IPPF V), a mutual fund with a five-year period of guarantee of principal. ING's four most recent Principal Protection Funds have attracted more than $2.7 billion in assets.

"ING's Principal Protection Funds continue to be an attractive investment option for investors focused on wealth preservation," said Bob Boulware, president of ING Funds Distributor, LLC, distributor for the Fund. "The Funds have been particularly appealing to investors who are concerned with generating a stream of income from their retirement assets. For those investors, a precipitous drop in retirement principal can shake the foundation of even the most sound retirement plan. The ING Principal Protection Funds are intended to protect against that."

The offering period of IPPF V begins Nov. 1, 2002, and runs through Jan. 15, 2003. The Fund is open to investors only during this two-and-a-half month offering period (for IRA transfers, the deadline is December 16, 2002). A quiet period follows the offering period, which runs from Jan. 16, 2003, through Jan. 22, 2003, 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 guarantee of principal is backed by MBIA Insurance Corp., an AAA-rated monoline insurer.*

The five-year guarantee period follows the quiet period and runs from Jan. 23, 2003, through Jan. 22, 2008. 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.**

At the end of the guarantee period, investors may choose to keep their balances invested in IPPF V, exchange assets into the same share classes of other ING Funds, or receive their IPPF V 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 V is managed by a team of portfolio managers. Mary Ann Fernandez, Senior Vice President and portfolio strategist, is responsible for overall Fund strategy and optimal asset allocation based on a proprietary financial model. 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 V 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, 3-way mailers and prospecting letters. For more information, investment professionals and investors can log onto www.ingfunds.com .

As of Sept. 30, 2002, ING Investments, LLC manages a variety of assets including open-end mutual funds and closed-end funds, variable annuities, structured vehicles, and institutional and private accounts with total assets under management of $31.4 billion for clients including financial institutions, corporations and individual investors. ING Investments, LLC, and ING Funds Distributor, LLC, are subsidiaries of Amsterdam-based ING Groep N.V.

ING's U.S. financial services operations [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., one of the largest integrated financial services organizations in the world.

Principal Risks: The principal risks of an investment in the Fund during the Guarantee Period are those generally attributable to stock and bond investing. Because the Fund invests in both stocks and bonds, the Fund may underperform stock funds when stocks are in favor and underperform bond funds when bonds are in favor. Use of the Fixed Component reduces the Fund's ability to participate as fully in upward equity markets and therefore, represents some loss of opportunity compared to a portfolio that is more heavily invested in equities. While a hedging strategy can guard against potential risks for the Fund as a whole, it adds the Fund's expenses and may reduce or eliminate potential gains. There is also a risk that a futures contract intended as a hedge may not perform as expected.

A prospectus containing more complete information about the Fund, including charges, fees, risks and expenses, may be obtained from ING Funds Distributor, LLC., 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.

Contact: Dana E. Ripley - 770.980.3317 or 404.668.8244 (cellular)

Phil Margolis - 860.723.4783 or 860.805.7642 (cellular)

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SOURCE: ING Americas

CONTACT: Dana E. Ripley, +1-770-980-3317, or cellular, +1-404-668-8244,
or Phil Margolis, +1-860-723-4783, or cellular, +1-860-805-7642, both of ING
Americas

Web site: http://www.ing-usa.com/