ING Investment Management Americas has announced the launch of the ING Global Bond Collective Trust Fund, providing institutional investors with a proven and broadly diversified strategy to global fixed-income investing. The strategy is based on an approach to global fixed-income markets that the firm has overseen since 2006 that combines fundamental and quantitative analysis in seeking out opportunities in more than 20 countries around the world. The strategy has a five-star rating from Morningstar and has been a top decile performer since inception, according to PSN.
ING also has a mortgage division, ING Mortgage, a portfolio adjustable-rate mortgage (ARM) wholesale lender that lends in 50 states, including jumbo loans up to $3 million.
"Institutional investors are increasingly recognizing global bonds as a way to diversify their portfolios and as a source of alpha," said Erica Evans, senior vice president and head of the U.S. institutional business unit at ING Investment Management. "Historically, global bonds have provided investors with non-correlated returns that help smooth out portfolio performance and improve returns. We believe that there will be considerable opportunity in global bonds over the next years and that this asset class will continue to provide favorable results over a market cycle."
The ING Global Bond Collective Trust Fund seeks to outperform the Barclays Capital Global Aggregate Bond Index by investing in a wide range of debt securities including sovereigns, corporates, emerging markets, high-yield and mortgage-backed securities (MBS). The strategy employs three main tools to generate excess returns: duration and yield curve, active currency management and broad sector rotation. Currency markets provide a liquid means to capitalize on opportunities in various types of economic environments and to manage the risk profile of the fund more precisely.
"In the current environment, global bonds are an important consideration for investors who want to achieve current income and capital appreciation," said Michael Mata, senior portfolio manager for the Global Bond strategy. "The U.S. represents less than half of the global bond market, and there are significant opportunities in fixed income investing in other parts of the world. Global bonds have provided an effective approach to broadening and diversifying portfolios and yet the category still has historically been under-utilized by many investors."
Mata indicates that, as investors are now seeking to make new allocations, that global bonds are increasingly being considered. "Given the events in the market over the last several years, investors are concerned about where to allocate assets. Global bonds may represent a good solution for many investors, particularly those who seek income and want to broaden their fixed-income allocations."
For more information, visit www.inginvestment.com.