Multi-Asset Strategies & Solutions
Asset Allocation
ING has provided asset allocation services to mid-sized institutional investors since 1980. Asset allocation is widely accepted as being the most important determinant of a portfolio’s total returns. The MASS Group has the dedicated resources and expertise to capture the full scope of market opportunities and overcome the risk management challenges inherent in today’s capital markets. ING offers an integrated solution for each client with flexibility to use separate accounts, pooled accounts and other investment vehicles as well as a broad range of traditional and alternative asset classes. Every client has a dedicated relationship manager and receives comprehensive investment reviews for the entire portfolio in a unified package.
Portable Alpha
Portable alpha is a financial technology that allows a manager to separate a portfolio’s value-added from active management (alpha) from the portion of returns derived from exposure to the asset class (beta). Under traditional portfolio management, excess return opportunities are dictated by the asset allocation of the portfolio. Portable alpha allows potential improvement in returns by freeing alpha seeking strategy from asset allocation policy in order to capture alpha in markets where it’s available and transfer it to markets where it’s scarce.
The MASS Group has the ability to:
- Source and secure rich, reliable and broadly diversified alpha,
- Access the appropriate derivatives markets to manage beta exposures and
- Combine multiple betas and alphas in a customized and unified arrangement to meet specific client needs.
Liability-Driven Investing
Liability-Driven Investing (“LDI”) is an approach to asset allocation that is synonymous with matching the interest rate sensitivity of a retirement fund’s assets with its liabilities. The MASS Group assists plan sponsors in significantly reducing the interest rate risk affecting their liabilities without necessarily reducing expected asset returns. By combining LDI and portable alpha, it is possible to minimize problems associated with under funding of pension liabilities and high volatility of pension costs.
Outcome Oriented Asset Allocation
The MASS Group assists in the management of
- The ING Solution Portfolios, which are “target date” mutual funds
- ING lifestyle and balanced mutual funds
- Multi-asset funds with principal protection features
Derivatives Management and Financial Engineering
- General management of pension plan funding status
- Risk budgeting across assets and liabilities
- Designing custom target date portfolios and “Glide-Paths”
- Developing a customized liability benchmark
- Developing a strategy designed to outperform any benchmark
