ING Funds Launches ING Principal Protection Fund X
PRNewswire-FirstCall
ATLANTA
May 3, 2004
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 X (IPPF X), a mutual fund with a five-year Guarantee Period. Assets managed in this type of strategy for ING Funds exceeded $6.9 billion as of March 31, 2004.
The Offering Period for IPPF X begins May 3, 2004, and runs through August 9, 2004 (the deadline for IRA transfers processed by ING Funds is July 12, 2004). The Fund is open to investors only during this three month Offering Period. The minimum investment is $1,000. A Quiet Period follows the Offering Period, which runs from August 10, 2004, through August 16, 2004. During the Quiet Period, no new deposits will be accepted and assets will remain invested in short-term investments, allowing time to permit settlement of funds.
The five-year Guarantee Period follows the Quiet Period and runs from August 17, 2004, through August 14, 2009. 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 Guaranteed Amount is based on the NAV on the last day of the Quiet Period, which may include a sales charge and does not apply to any earnings realized during the Guarantee Period. If the shareholder sells shares during the Guarantee Period, shares are redeemed at the then current NAV, which may be more or less than the original investment and/or the NAV at the inception of the Guarantee Period.
The five-year Guarantee Period is backed by MBIA Insurance Corp., a AAA- rated monoline insurer. The rating applies to MBIA's financial and claims- paying ability, not to the safety or performance of the mutual fund shares. 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.
The Guarantee Period ends on August 14, 2009. On that date, shareholders will receive their Guaranteed Amount or the value of the shares at NAV, whichever is greater. Shareholders have the following available options on August 14, 2009: remain invested in the Fund for the Index Plus LargeCap Period, which will then invest generally in stocks only; exchange shares into another ING principal protection fund, if available; exchange into other ING mutual funds that are available for exchange; or sell their shares for cash, less any applicable CDSC schedule. If you take no action on August 14, 2009, you will be deemed to have elected to remain in the Fund for the Index Plus LargeCap Period.
Important note: After August 14, 2009, assets, including those that remain in the Fund, are no longer guaranteed and are subject to market risks. As with the sale of any securities, there may be a taxable event if it is required to liquidate fixed income securities at the end of the Guarantee Period.
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. ING Aeltus is a wholly owned subsidiary of ING Groep N.V. and is an affiliate of ING Investments.
IPPF X 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 a team of fixed-income specialists led by James B. Kauffmann.
IPPF X launches with extensive educational and marketing support for investment professionals. Broker/dealers can add their own contact information to these materials. Included in these 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 $34.8 billion in total assets under management as of March 31, 2004 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 Groep N.V. (NYSE: ING) is one of the largest financial services companies in the world and is a leading provider in global and U.S. markets. In the U.S., ING's operations include a variety of businesses offering a comprehensive array of products and services to retail and institutional clients -- including retirement programs; annuities; life insurance; employee benefits; mutual funds; financial planning; reinsurance; investment management and direct banking across the country. ING holds top-tier rankings in key U.S. markets and serves over 14 million customers across the nation. All of ING's business operations in the U.S. are part of the parent company, ING Groep N.V., which offers banking, insurance and asset management to over 60 million private, corporate and institutional clients through operations in 60 countries. ( www.ing.com )
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 an allocation 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. Because the Fund generally 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.
For more complete information about ING Funds, please contact ING Funds Distributor, LLC, at 800-992-0180 (shareholder services) or 800-334-3444 (investment professionals) for a prospectus. Please read the prospectus carefully and consider the investment objectives, risks, charges and expenses of the fund before investing. The prospectus contains this information and other information about the fund.
Media Inquiries: Cindy Schaus Caroline Campbell ING U.S. Financial Services ING U.S. Financial Services 515.698.7607 770.618.3801 cindy.schaus@us.ing.com caroline.campbell@us.ing.com
SOURCE: ING Funds
CONTACT: Media, Cindy Schaus, +1-515-698-7607, or
cindy.schaus@us.ing.com, or Caroline Campbell, +1-770-618-3801, or
caroline.campbell@us.ing.com, both of ING U.S. Financial Services