ING opens up alternatives

Date: Wednesday, March 28, 2007
Author: Chris Nicholls, Financial Standard

ING’s has launched a new capital protected fund through its OneAnswer platform that gives investors access to alternative investments with the comfort of built-in safeguards.

Developed exclusively for ING by Société Générale Asset Management (SGAM), the ING SGAM Protected Alternatives Fund will give OneAnswer clients exclusive access to a globally diversified range of investments, including long-only US equities, long/short European equities and a multi-strategy hedge fund - all with the comfort of rising capital protection.

The fund ensures 80% protection of investments, rising in line with the underlying assets. If the fund reaches a new high watermark, the underlying assets are protected at 80% of that higher level.

David Kan, ING’s Head of Product & Strategy, Personal Investments, said the new fund is tailored to meet the needs of advisers who are increasingly using or recommending alternative assets for their clients.

"Clients are becoming more sophisticated, and there is demand for different tools and products to suit different age brackets and different needs,” Mr. Kan said.

“For many investors, particularly those approaching retirement, this will provide potential capital growth, as well as peace of mind.”

Almost a third of Australian super funds now invest in alternative investments, and internationally, alternative strategies have outperformed traditional global equities, with less volatility.

The investment complements ING’s other capital protected product, the ING Protected Growth Fund, launched in December last year, which has been well received.