ING Investment Management Sees Positive Year for Equities; Rallies in High Yield, Senior Bank Loans, Emerging Markets, Corporates Expected to Continue

NEW YORK, Nov. 16, 2010 /PRNewswire/ -- ING Investment Management sees 2011 as a positive year for equities, with earnings growth, attractive valuations, good liquidity and strong corporate wealth driving performance. Specifically, US large cap stocks and emerging markets will be two attractive areas for equities, according to Paul Zemsky, Head of Asset Allocation, even in light of a continued sluggish GDP growth in most of the developed world.

"The outlook for equities is good and investors should focus on finding high growth companies and those that can deliver yield," Zemsky said. "Many companies in developed markets are trading at attractive valuations with strong balance sheets and free cash flow. The low inflation, low interest rate environment will provide additional support for performance. Emerging markets will continue to benefit from their strong economies and high growth rates relative to the rest of the world."

The firm is projecting equity indices to appreciate from where they are today with the S&P 500 at 1300 at year end 2011, the Europe Stoxx 600 at 310 and the MSCI EM Free at 1350.

Low inflation and accommodative monetary policy will provide a backdrop for a continuing rally in certain fixed income sectors including high yield, senior bank loans and emerging market corporates, according to Christine Hurtsellers, Chief Investment Officer of Fixed Income and Proprietary Investments.

"Balance sheets of corporations are looking good and earnings momentum is still strong, supporting the case for high yield," said Hurtsellers.  "These same underlying influences will also support the market for senior bank loans, which is showing resilience."  

Hurtsellers commented that growth in developing markets remains strong and will help offset some of the fiscal and monetary headwinds faced in developed economies.  She indicated that growing tensions between countries with trade surpluses and those with trade deficits may be a source of uncertainty for the markets in 2011, but appears to be a manageable situation.

ING PROFILE

ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services. As of 30 Sept. 2010, ING served more than 85 million private, corporate and institutional clients in more than 40 countries. With a diverse workforce of about 105,000 people, ING is dedicated to setting the standard in helping our clients manage their financial future.

About ING Investment Management

ING Investment Management is the primary investment arm of ING Group and one of the largest global investment managers with over $500 billion in assets under management across more than 30 countries. ING Investment Management's broad array of investment strategies, combined with ING Group's distribution capabilities across retail and institutional channels, enables the organization to offer an integrated financial services solution for all of its clients around the world. In the Americas, ING-IM manages over $224 billion with offices in the U.S., Canada and Latin America.

Past performance does not guarantee future results.  There is no guarantee that any forecasts or opinions in this communication will be realized.  Information should not be construed as investment advice.

SOURCE ING