ING’s US emerging markets fund raises $385m in IPO

A fund from the US arm of ING Investment Management (ING IM) investing in emerging markets equity securities which pays dividends has raised $385m in its initial public offering (IPO).

The closed-ended fund, ING Emerging Markets High Dividend Equity Fund, began trading on the New York Stock Exchange (NYSE) on 27 April 2011.

In an IPO led by Morgan Stanley, Citi, BofA Merrill Lynch, UBS Investment Bank, Wells Fargo Securities and Ameriprise Financial Services, Inc., the fund raised $385m.

Its portfolio managers will invest in 60 to 120 dividend producing equity securities of emerging markets issuers in normal market conditions.

The fund also seeks to secure gains and stable returns over a market cycle by selling options on selected ETFs, international, regional or country indices of equity securities, and/or equity securities.

The fund’s portfolio aims to exceed the dividend yield of the MSCI Emerging Markets Index, a free float-adjusted market capitalisation index designed to measure emerging market equities’ performance. The index is composed of approximately 750 firms.

Managing the fund’s overall security selection and portfolio construction is Moudy El Khodr and Manu Vandenbulck. They are backed by investment advisers at ING IM Advisors B.V., the Fund’s sub-adviser.

The fund also draws upon research from ING analysts based in 18 emerging market countries in Asia, Latin America and Eastern Europe.

ING Investment Management US is the Dutch group’s US-based asset management arm, and part of ING US Insurance. The group is currently preparing for the sale of its US division, as part of plans to pay back the Dutch state for the remaining €5bn of its €10bn bailout.

It does not need to divest the arm until 2013 as per an agreement with the European Commission, but a spokesman said recently it is aiming for full repayment in May 2012.

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