ING Expects to See Continued Demand for the Asset Class

    HARTFORD, Conn., Dec. 10 /PRNewswire-FirstCall/ -- ING US Wealth
 Management is focusing greater attention on educating plan sponsors and
 consultants about the importance of including a stable value investment
 option within a defined contribution plan, and the motivating factors that
 have driven so many participants to rely on this asset class, no matter how
 close they are to retirement.
 
     With over $413 billion in assets, stable value represents the largest
 conservative investment in defined contribution retirement plans(1). It is
 already established as one of the more popular asset classes among
 investors of all ages, and not just Baby Boomers. "The attraction of a
 stable value offering-specifically its risk and return characteristics-fits
 the changing times, and is meeting the needs of a broad workforce that
 includes investors across every age demographic." says Bill Jasien, Head of
 Sales and Service, Public Markets, at ING.
 
     Today, plan sponsors operate in an environment in which they are
 conscientious of both heightened public and regulatory scrutiny, as well as
 market volatility, when considering plan design. While target-date funds
 are an excellent way for participants to automate their retirement savings
 through a set time horizon, when it comes to actively seeking protection
 against unexpected market downturns, industry evidence shows that they are
 choosing stable value funds. According to The Stable Value Investment
 Association (SVIA), an overwhelming majority of 401(k) investors who
 actively select their investments choose stable value funds as a core
 investment.
 
     "We're seeing an accelerated need for investment products that put a
 high premium on capital preservation," says Jasien. "The closer
 participants get to retirement, the greater the premium they place on
 stability," he adds. With nearly 8,000 Americans turning 60 each day,
 there's been a tremendous demographic surge as the Baby Boomers retire.
 And, according to a recent survey by CRA International, nearly half of
 older Americans report they are concerned that they will run low on money
 as they grow older. The findings also showed that fewer than one in ten
 were willing to take significant investment risk in hopes of getting a
 substantially higher return(2).
 
     Yet stable value options are also popular with younger participants who
 benefit from stability whether they are just starting to build a small
 retirement portfolio, or simply seek to protect the nest egg they have
 worked so hard to accumulate. As their portfolios likely mature to include
 a more aggressive mix of both stocks and bonds, stable value funds can
 become a vehicle of choice to help mitigate the risk of loss they face in
 turbulent markets. Recent data from Hewitt Associates shows that while Baby
 Boomers have between 17.1 - 26.7 percent of their retirement invested in
 stable value (or other guaranteed investment contracts), investors between
 the ages of 20-29 are not far behind, with 18.6 percent allocated in the
 asset class; investors between the ages of 30-39 allocate just over 14
 percent(3).
 
     "The bottom line is - investors never outgrow stable value investments,
 nor do they go out of style," says Jasien.
 
     Demand for stability, guaranteed returns, and liquidity is not waning
 despite plan sponsors' shift away from pension plans to a
 defined-contribution model. Now more than ever, plan sponsors face a
 fiduciary responsibility to create a truly diversified line-up of "best in
 class" investment choices, which include both target-date funds and
 vehicles that can offer traditional pension-like attributes.
 
     ING is dedicated to raising awareness among plan sponsors about the
 role stable value funds play in defined contribution retirement plans now,
 and in the future. ING seeks to educate sponsors and consultants about
 their full range of options and where product innovation is heading in this
 space.
 
     ING has more than 40 years experience in supporting retirement plans
 for Government, Education, Corporate and Healthcare Employers, and boasts
 more than 30 years of experience as a stable value provider for defined
 contribution plans. ING manages over $58 billion in stable value assets (as
 of 9/30/07).
 
     About ING
 
     ING Groep, N.V. is a global financial institution of Dutch origin
 offering banking, insurance and asset management to more than 75 million
 private, corporate and institutional clients in more than 50 countries.
 With a diverse workforce of more than 120,000 people, ING comprises a broad
 spectrum of prominent companies that increasingly serve their clients under
 the ING brand.
 
     In the U.S., the ING family of companies offers a comprehensive array
 of financial services to retail and institutional clients, which include
 life insurance, retirement plans, mutual funds, managed accounts,
 alternative investments, direct banking, institutional investment
 management, annuities, employee benefits, financial planning and
 reinsurance. ING holds top-tier rankings in key U.S. markets and serves
 more than 15 million customers across the nation. For more information,
 visit www.ing.com.
 
 

     (1) Stable Value Investment Association (SVIA)
     (2) "Making the Case for Stable Value," CRA International; David F.
         Babbel, Professor, Wharton School and CRA Int'l and Miguel A. Herce,
         Ph.D., CRA Int'l, October 2007.
     (3) Hewitt Associates: "How Well Are Employees Saving and Investing in
         401 (k) Plans?" (2006)
 
 

SOURCE ING US Wealth Management