ING Funds Launches ING Principal Protection Fund VII
PRNewswire-FirstCall
ATLANTA
May 2, 2003
ING's U.S. financial services operations announced today that its retail mutual fund unit, ING Funds Distributor, LLC, has launched ING Principal Protection Fund VII (IPPF VII), a mutual fund with a five-year Guarantee Period.* ING Funds seeks to be a premier provider of core holdings for investors and a leader in the Principal Protection-type funds with more than $7 billion in assets managed in this type of strategy as of March 31, 2003.
The Offering Period for IPPF VII begins May 1, 2003, and runs through July 10, 2003 (the deadline for IRA transfers processed by ING Funds is June 13, 2003). The Fund is open to investors only during this two-and-a-half month Offering Period. The minimum investment is $1,000. A Quiet Period follows the Offering Period, which runs from July 11, 2003, through July 16, 2003. During the Quiet Period, assets will remain invested in short-term investments allowing time to permit settlement of funds and no new deposits will be accepted.
The five-year Guarantee Period follows the Quiet Period and runs from July 17, 2003, through July 15, 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 have reinvested all dividends and capital gains distributions during the Guarantee Period.* The five-year Guarantee Period is backed by MBIA Insurance Corp., an AAA-rated monoline insurer. The MBIA rating applies to MBIA's financial and claims-paying ability, not to the safety or performance of the mutual fund shares.
At the end of the Guarantee Period, investors may choose to keep their balances invested in the Fund during the IPPF VII Index Plus LargeCap Period, exchange assets into the same share classes of other ING Funds, or receive their IPPF VII account balances in cash. An exchange or redemption may trigger a taxable event or be subject to a contingent deferred sales charge (CDSC). At the end of the Guarantee Period, the assets that remain invested in the Fund are no longer guaranteed.
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 VII 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 Component is managed by Portfolio Manager, John Murphy.
IPPF VII launches with extensive educational and marketing support for investment professionals. Broker/dealers can add their own contact information to these materials. Included in those materials are advertising templates, statement stuffers, 3-way mailers and prospecting letters. For more information, investment professionals and investors can log onto www.ingfunds.com .
ING Investments, LLC manages open-end mutual funds and closed-end funds, variable annuities, structured vehicles, and institutional and private accounts with more than $32.4 billion in total assets under management as of March 31, 2003, 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 mutual funds; fixed and variable annuities; retirement programs; financial planning; employee benefits; trust services and life insurance, 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.
Press contact: Dana E. Ripley - 770.980.3317 or 404.668.8244 (mobile)
* 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 the amount you invested. During the Guarantee Period, shareholders of the Fund pay a fee equal to 0.33% of the Fund's average daily net assets for MBIA's financial guarantee, which is included in the Fund's total operating expenses. If you sell shares during the Guarantee Period, shares are redeemed at the then current NAV (Net Asset Value), which may be more or less than your original investment and/or the NAV at the inception of the Guarantee Period. The Guaranteed Amount is based on the NAV on the last day of the Quiet Period, not POP (Public Offering Price which may include a sales charge), and does not apply to any earnings realized during the Guarantee Period. At the end of the Guarantee Period, you may choose to receive assets in cash, less any applicable CDSC schedule; exchange shares into another available ING fund; or remain invested during the Fund's Index Plus LargeCap Period. At the end of the Guarantee Period the guarantee will no longer apply to amounts that remain invested in the Fund.
Unless held in a tax-deferred retirement account, you must pay U.S. income tax yearly on the interest and dividends earned by the Fund's portfolio investments, including imputed interest from the Fund's zero-coupon bond holdings as a component of net income distribution dividends as it accrues. This is true even if you reinvest your income distribution dividends. If you invest through a tax-deferred account, such as a retirement plan, you generally will not have to pay tax on these dividends until they are distributed from the account. These accounts are subject to complex tax rules, and you should consult your tax adviser.
Principal Risk(s): During the Guarantee Period, there are substantial opportunity costs. Use of the Fixed Component reduces the Fund's ability to participate as fully in upward equity market movements, and therefore represents some loss of opportunity, or opportunity cost, compared to a portfolio that is fully invested in equities. The Fund may allocate a substantial portion, and under certain circumstances all, of the Fund's assets to the Fixed Component in order to conserve Fund assets to a level equal to or above the present value of the Guaranteed Amount. In the event of a reallocation of 100% of the assets to the Fixed Component, the Fund would not reallocate any assets into the Equity Component prior to the Maturity Date. As with any investment in stocks and bonds, the Fund is subject to market risks.
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.
SOURCE: ING Americas
CONTACT: Dana E. Ripley of ING, +1-770-980-3317, or mobile,
+1-404-668-8244