ING Group Established Its Presence In India - Dec 01, 2008

Background :The ING Group established its presence in India in 1992, when it opened a representative office of the ING Bank. It opened its first branch in Mumbai in 1994. ING Group has promoted ING Investment Management (India) Private Limited as a company incorporated in India for the purpose of carrying on asset management activities. The group has a 75% holding in this company. The fund house manages assets worth Rs. 4208.83 crore at the end of October 2008.

ING Dividend Yield Fund (G) an open-ended equity scheme launched in September 2005. The objective of the scheme to provide long-term capital appreciation by investing in a diversified portfolio of high quality equity and equity related securities. The minimum investment amount is Rs.5000 and in multiples of Re.1 thereafter. The unit NAV of the scheme was Rs 8.52 as on 28 November 2008.

The total net assets of the scheme decreased by Rs 5.08 crore to Rs 16.68 crore in October 2008.ING Dividend Yield Fund (G) took fresh exposure to two stocks in October 2008. It purchased 27,767 units (3.50%) of Tata Steel and 54,898 units (2.50%) SRF in October 2008.

The scheme completely exited from Nestle India by selling 4859 units (3.76%) and Mahindra Ugine Steel Company by selling 75,110 units (1.39%) in October 2008.Sector-wise, the scheme took fresh exposure to Textile – Manmade at 2.50% in October 2008.Sector-wise, the scheme exited completely from Food – Processing - MNC at 3.76% in October 2008.

The scheme had highest exposure to Castrol India with 27,347 units (4.81% of portfolio size) followed by Tata Power Company with 11,298 units (4.67%), Hindustan Unilever with 34,449 units (4.58%) and Indian Oil Corporation with 21,991 units (4.460%) among others in October 2008.It reduced its exposure to Bharati Shipyard to 41,701 units (by 1.68%), Bajaj Electricals by selling 4939 units to 6872 units (1.00%) and GAIL (India) to 34,319 units (0.86%) among others in October 2008.

Sector-wise, the scheme had highest exposure to Fertilizers at 8.22% (8.70% in September 2008), followed by Banks - Private Sector at 7.40% (7.39%) and Banks – Public Sector at 7.20% (6.43%) among others in October 2008.Sector wise, the scheme had reduced exposure in Domestic Appliances to 1.17% (by 2.17%), Oil Drilling / Allied Services to 3.99% (by 0.73%) and Automobiles - Scooters And 3 - Wheelers to 3.91% (by 0.71%) among others in October 2008.

The scheme outperformed the category average over most of the time periods. It has outperformed the Sensex over all time periods.Over three-month period ended as on 28 November 2008, the scheme posted negative returns of 34.96% underperforming the category average that posted negative returns of 33.36%. It outperformed the Sensex, which posted negative returns of 35.28% during the same period.Since inception, the scheme posted negative returns of 14.80% returns underperforming the category average of 65.09%.