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ING (L) Invest Asia Pacific High Dividend

ING (L) Invest Asia Pacific High Dividend. Asia ex Japan Equity Team ING Investment Management Asia Pacific. September 2007. Introduction. Fund Objective

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ING (L) Invest Asia Pacific High Dividend

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  1. ING (L) InvestAsia Pacific High Dividend Asia ex Japan Equity Team ING Investment Management Asia Pacific September 2007

  2. Introduction Fund Objective The Asia Pacific High Dividend Fund seeks to provide investors with high dividend income yield as well as long term capital appreciation by investing in a diversified portfolio of equities listed in the Asia Pacific region. Key Benefits to Investors • Income returns from a high dividend yield portfolio • Capital returns from stock selection within a high dividend Asia Pacific stock universe • Risk control and portfolio positioning to ensure strategic diversification • Attractive return / risk profile in bull and bear cycles • Strong team and investment process in the management of the fund ING Asia Pacific High Dividend – September 2007

  3. Framing the Key Issues ING Asia Pacific High Dividend The investor desires… 1 2 3 ING Asia Pacific High Dividend – September 2007

  4. ING IM a Pioneer in High Dividend investing... • Global High Dividend > AUM: EUR 4.9bn • Euro + Europe High Dividend > AUM: EUR 4.6bn • US High Dividend > AUM: EUR 186m Data as of 30 June 2007 The same high dividend philosophy and process was tested, customised and implemented for Asia Pacific... ING Asia Pacific High Dividend – September 2007

  5. ING Asia Pacific High Dividend funds Data as of 31 July 2007 ING Asia Pacific High Dividend – September 2007

  6. ING Asia Pacific High Dividend Performance Data as of 31 August 2007. Total return figures for the fund include quarterly dividends distributed. The Cayman registered fund haspaid out USD$0.12 quarterly dividends, or USD$0.48 per year. The inception of the fund was USD$10.00. The fund has not been rated by an external agency. However, our own internal comparisons with similar competitors reveal that werank close to the top. ING Asia Pacific High Dividend – September 2007

  7. Why Asia Pacific Equities? • Asia Pacific ex Japan accounts for about 8% to 9% of the MSCI World equity index (and Asia Pacific accounts for about 18% of the MSCI World equity index) • Macroeconomic growth in this region is strong and we expect it to remain high and well supported for the long term • Corporate earnings growth is attractive • Asian corporates in good shape • Valuations, dividend yields and dividend growth are attractive ING Asia Pacific High Dividend – September 2007

  8. The Case for High Dividend Yield Strategy 1) Compound interest of dividends ING Asia Pacific High Dividend – September 2007

  9. The Case for High Dividend Yield Strategy 2) Dividend yield strategy as a medium to long term alpha source We back-tested 15,000+ portfolio simulations and 30 factors for the Asia Pacific stock universe, over different bear & bull cycle scenarios, and found the following: a) Dividend Yield as a medium to long term alpha sourceOver a 7 year period from Dec 1997, our backtested Asia Pacific high dividend portfolio achieved +350% absolute return (versus a +85% return for the benchmark). b) Dividend Yield combined with other stock selection factorsAdditional returns of +5% to +15% per annum can be achieved when dividend yields are combined with other stock selection factors. ING Asia Pacific High Dividend – September 2007

  10. The Case for High Dividend Yield Strategy 3) Return / Risk profiles in various market cycles Full Backtested Period 31 Dec 1997 to 31 Mar 2005covering various bull & bear cycles 31 Dec 1997 to Mid 1998: last 6 months of Asian financial crisis Mid 1998 to 31 Dec 1999: strong technology rally APHD = Asia Pacific High Dividend simulated portfolio. Returns are after transaction costs.All other indices are actual index returns. ING Asia Pacific High Dividend – September 2007

  11. The Case for High Dividend Yield Strategy 3) Return / Risk profiles in various market cycles 31 Dec 1999 to 31 Sep 2001 : full bear cycle from tech crash to Sep 2001 terrorist effects 30 Sep 2001 to 31 Mar 2005 : Post Sep 2001, Iraq war, and post war rally from mid 2003 onwards APHD = Asia Pacific High Dividend simulated portfolio. Returns are after transaction costs.All other indices are actual index returns. ING Asia Pacific High Dividend – September 2007

  12. Universe of Asia Pacific Equities The Asia Pacific High Dividend fund can invest in the following countries: • Australia • China • Hong Kong • India • Indonesia • Japan • Malaysia • New Zealand • Philippines • Singapore • South Korea • Taiwan • Thailand • There are over 25,000 listed equities in these markets. • The fund will hold between 75 to 110 equities. The Asia Pacific ex Japan region accounts for approx 8% to 9% of MSCI AC World ING Asia Pacific High Dividend – September 2007

  13. Total Asia Pacific Universe 25,000 stocks Daily Liquidity and Market Cap3,000 stocks Dividend Yield500 stocks Stock Selection100-120 stocks Equity Portfolio75-110 stocks Investment Process Overview Screen: • Liquidity (USD$2m Daily) • Market Cap (USD$100m) • Dividend Yield Filter >2.5% • Quantitative Ranking • Bottom-up fundamental analysis • Risk diversification and portfolio positioning • Country and sector limits +/- 10% of benchmark ING Asia Pacific High Dividend – September 2007

  14. Security Selection ING Asia Pacific High Dividend – September 2007

  15. Portfolio CharacteristicsAs of 31 August 2007 * 12 month forward, time weighted, calculations as of 31 August 2007 ** The 12% volatility of the MSCI AC Asia Pacific ex Japan USD benchmark is approximately due to 10% volatility in stock prices plus 2% volatility due to currencies. ING Asia Pacific High Dividend – September 2007

  16. Country & Sector WeightsAs of 31 August 2007 Representative Characteristics from ING Asia Pacific High Dividend Fund (Cayman registered fund). Data as of 31 August 2007 ING Asia Pacific High Dividend – September 2007

  17. Performance Characteristics ING Asia Pacific High Dividend – September 2007

  18. Seoul Tokyo Taipei Shenzhen Hong Kong Mumbai Manila Bangkok Kuala Lumpur Singapore Sydney Auckland ING Investment Management – Asia Pacific Unparalleled Coverage of Asian Investments Strong Presence in Asia Pacific • US$91 billion in Assets Under Management • Presence in 12 locations in the region • The widest network and largest pool of financial professionals in Asia ex-Japan*. There are over 230 investment professionals in ING IM in Asia Pacific • The 3rd largest retail fund manager in Asia ex-Japan and Australia* As of 31 December 2006 * Asia Asset Management, September 2006 ING Asia Pacific High Dividend – September 2007

  19. Local Head of Equity 12 Asian Countries • Australia • China • Hong Kong • India • Japan • Korea • Malaysia • Philippines • Singapore • Taiwan • Thailand • New Zealand ING IM Asia Pacific Regional Equity Team Our team members understand the Asia Pacific region – most of our investment professionals were born in this region, and are now living and working in this region. Nicholas Toovey Regional Head of Equity Asian Quantitative Resources Local Equity Asian Equity Teik Cheah Regional Head of Quantitative Resources & Investment Risk Bratin Sanyal Head of Asian Equity Barbara Chan Quantitative Investment Manager Oscar Leung Senior Investment Manager Gregory Ko Assistant Investment Manager Samuel Hui Data Analyst Michael Chiu Senior Investment Manager Charlie Yang Investment Analyst Gilbert Tan Quantitative Analyst Benjamin So Quantitative Analyst Kelly Chung Investment Analyst Hong Kong office Local offices ING Asia Pacific High Dividend – September 2007

  20. Key Benefits to Investors • Exposure to Asia Pacific equities • Exposure to a value based high dividend strategy, within a high growth region • Benefit from a diversified portfolio with favourable characteristics in the areas of volatility, dividend yield, earnings yield, earnings growth, and country & sector exposures • Benefit from a strong investment process combining the best of quantitative and fundamental analyses • Access the know how & investment expertise of ING Asian Pacific team members who were born and who live & work in this region ING Asia Pacific High Dividend – September 2007

  21. Appendix - Biographies ING Asia Pacific High Dividend – September 2007

  22. Appendix - Biographies ING Asia Pacific High Dividend – September 2007

  23. Appendix - Biographies ING Asia Pacific High Dividend – September 2007

  24. Disclaimer The elements contained in this document have been prepared solely for the purpose of information and do not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy. This document is intended only for professional investors. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither ING Investment Management (for this purpose using the legal entity ING Investment Management Luxembourg S.A. nor any other company or unit belonging to the ING Group, nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. The information contained in this document cannot be understood as provision of investment services. If you wish to obtain investment services please contact our office for advice. Use of the information contained in this document is solely at your risk. No direct or indirect liability is held for any loss sustained or incurred by readers as a result of using this publication or basing any decisions on it. Investment sustains risk. Please note that the value of your investment may rise or fall and also that past performance is not indicative of future results and shall in no event be deemed as such. This presentation and information contained herein is confidential and must not be copied, reproduced, distributed or passed to any person at any time without our prior written consent. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law. ING (L) Invest Asia Pacific High Dividend is a subfund of ING (L) Invest (SICAV) established in Luxembourg. ING (L) Invest (SICAV), is duly authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. Both funds are registered with the CSSF. For more detailed information about the investment fund we refer to the prospectus and the corresponding supplements. In relation to the investment fund mentioned in this document a Financial Information Leaflet (simplified prospectus) has been published containing all necessary information about the product, the costs and the risks which may occur. Do not take unnecessary risk. Read the Financial Information Leaflet (simplified prospectus). Investment funds do not offer guaranteed returns and any past returns are not indicative nor do they secure future returns. The prospectus, supplement and the Financial Information Leaflets (simplified prospectus) are available on the following website: www.ingim.com. The information in this document is not intended to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Read the prospectus before investing. ING Asia Pacific High Dividend – September 2007

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