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GLOBAL PERSPECTIVES
Table of Contents
Overview Strategic Overview News Headlines Global Capital Market Returns Equity U.S. U S Market Returns Valuation Fundamentals Volatility Fixed Income Bond and Loan Returns Yield Curves Global Yields U.S. Yields Municipal, Credit and Mortgage Spreads International Global Returns Major Currencies International Economics Global Stock Fundamentals World and Emerging Markets Euro Zone, China Hard Landing 28-31 32 33 34 35-36 37-38 20 21 22 23-24 25-27 6-10 11-12 13-18 19 3 4 5 Economy Consumer Trends, Confidence Leading & Current Business Indicators Employment and Unemployment GDP Inflation Housing Federal Budget, Debt, Deficits, Funding Corporate Tax Rates Commodities, Oil, U.S. Trade Asset Allocation Correlation Matrix Fund Flows Alternative Investment Returns Long-term Capital Market Results Diversification & Allocation Strategy Retirement Investment-Related Retirement Trends Index Definitions / Important Disclosures 65-74 75-77 57 58 59 60 61-64 39-40 41-43 44-45 46 47 48-49 50-52 53 54-56
All d t are th most recently available as of 2/29/12 unless data the t tl il bl f l indicated otherwise. Please refer to the Index Definitions.
GLOBAL PERSPECTIVES
Strategic Overview
Fundamentals
Global Capital Market Returns Advancing Corporate Profits Broadening Manufacturing Consumer Strength Developing Economies Global Risks U.S. Debt and Deficit Euro zone Debt China Hard Landing Commodities Bubble 51 37 38 54 Total federal debt exceeds 90% of GDP, and the deficit is about 9% of GDP (without Social Security or Medicare) Political posturing will likely continue Medicare). continue. The alarming debt levels of PIIGS countries may be containable by the fence being put in place, but potential obstacles and pitfalls remain. Chinas soaring state investments, property bubble and declining exports raise questions about the probability of a soft landing landing. Gold prices exemplify the risk of a potential collapse in commodities prices.
Slide
5 14 42 39 35
Comment Returns for a globally diversified strategy over the last 10 years refute the notion of a lost decade.
Consistent earnings growth is the cornerstone of an improving investment climate. U.S. ISM Manufacturing has expanded for 29 consecutive months and leads the way while global manufacturing also continues to expand. Personal consumption and income are at all-time highs; retail sales are rising fast.
World GDP grew steadily through the great recession supported by the largest emerging markets, which now out-produce the largest developed economies.
Overview
GLOBAL PERSPECTIVES
Overview
GLOBAL PERSPECTIVES
2011
2010
2009
2008
2007
1 year y
The Global Asset All Th Gl b l A t Allocation strategy i comprised of 10 asset classes, equally weighted: S&P500 S&P400 Mid ti t t is i d f t l ll i ht d S&P500, Midcap, S&P600 S ll Smallcap, MSCI U S REIT Index, U.S. I d MSCI EAFE Index, MSCI BRIC Index, Barclays Capital U.S. Corporate Bonds, Barclays Capital US Treasury Bonds, Barclays Capital Global Aggregate Bonds, Barclays Capital U.S. High Yield Bonds. Source: FactSet.
Overview
GLOBAL PERSPECTIVES
S&P 500
After two bull and two bear market cycles, the S&P 500 is about 13% below its 2007 peak.
1,800
1,600
(49%)
1,400
1,200
(51.9) (27.6) 24.2 101.9 (12.7)
1,000
800
600 400 1997 1999 2001 2003 2005 2007 2009 2011
10/09/07 11/20/08 11/20/08 01/06/09 1/06/09 3/09/09 3/09/09 2/29/12 10/09/07 2/29/12
Equity
GLOBAL PERSPECTIVES
Index Broad Market Dow Industrial S&P 500 S&P 100 (OEX) Nasdaq Composite Large-Cap Russell 1000 Russell 1000 Value Russell 1000 Growth Mid-Cap Russell Mid-Cap Russell Mid-Cap Value Russell Mid-Cap Growth Mid Cap Small-Cap Russell 2000 Russell 2000 Value Russell 2000 Growth
Feb-12 2.7 4.3 4.6 46 5.6 4.4 4.0 4.8 4.1 3.8 4.5 45 2.4 1.5 3.3
YTD 6.5 9.0 9.0 90 14.1 9.5 7.9 11.0 10.5 8.9 12.0 12 0 9.6 8.2 11.0
2011 8.3 2.1 3.2 32 (0.8) 1.5 0.4 2.6 (1.5) (1.4) (1.7) (1 7) (4.2) (5.5) (2.9)
2010 14.0 15.1 12.5 12 5 18.0 16.1 15.5 16.7 25.5 24.8 26.4 26 4 26.9 24.5 29.1
2009 22.6 26.5 22.3 22 3 45.3 28.4 19.7 37.2 40.5 34.2 46.3 46 3 27.2 20.6 34.5
2008
2007
2006 19.0 15.8 18.5 18 5 10.4 15.5 22.2 9.1 15.3 20.2 10.7 10 7 18.4 23.5 13.3
2005 1.7 4.9 1.2 12 2.1 6.3 7.1 5.3 12.7 12.6 12.1 12 1 4.6 4.7 4.2
1 year 3 years 5 years 10 years 8.8 5.1 6.4 64 7.8 4.9 2.2 7.6 2.6 1.5 3.8 38 (0.2) (2.7) 2.4 25.8 25.6 24.0 24 0 30.4 26.2 25.0 27.5 32.0 31.9 32.2 32 2 29.5 27.7 31.2 3.9 1.6 1.6 16 5.2 1.8 ( ) (1.1) 4.5 2.7 1.0 4.1 41 1.8 (0.4) 3.9 5.1 4.2 3.2 32 6.4 4.6 4.8 4.3 8.2 8.3 7.5 75 7.0 7.0 6.7
(31.8) 8.8 (37.0) 5.5 (35.3) 6.1 (35 3) 6 1 (40.0) 10.5 (37.6) 5.8 ( (36.8) (0.2) ) ( ) (38.4) 11.8 (41.5) 5.6 (38.4) (1.4) (44.3) 11.4 (44 3) 11 4 (33.8) (28.9) (38.5) (1.6) (9.8) 7.0
Note: All returns are total returns including dividends expressed as percentages. Returns for 3-, 5-, and 10-year periods are annualized. Source: Dow Jones, Standard & Poors, NASDAQ, Russell Investments, FactSet
Equity
GLOBAL PERSPECTIVES
(17.1) 12.1 12.7 (0.6) (9.8) 2.4 6.3 20.0 2.1 2.9 26.7 22.2 10.2 19.0 5.5 15.1
(55.3) (18.6) 19.2 (22.8) 7.1 7.5 13.3 18.6 8.4 36.8 21.0 15.8
(39.9) 12.0 (45.7) 22.5 (43.1) 16.3 (30.5) 11.9 (29.0) 19.4 (37.0) 5.5
Note: N t All returns are t t l returns including dividends expressed as percentages. Returns f 3- and 5 t total t i l di di id d d t R t for 3 d 5-year periods are annualized. All other returns are i d li d th t cumulative. Total returns are based on S&P GICS sectors. Source: Standard & Poors, FactSet
Equity
GLOBAL PERSPECTIVES
Indexes: Lg Val = Russell 1000 Value Mid Gr = Russell Mid Cap Growth
Note: Data based on Russell U.S. equity indices as indicated above and are total returns including dividends for each calendar year or partial year. Source: Russell Investments, FactSet
Equity
GLOBAL PERSPECTIVES
Log
10,000 6,000 5,000 , 4,000 3,000 2,000 1,000 ,000 600 500 400 300 200 100 60 50 40 1906 1911 1916 1921 1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011
10
Equity
GLOBAL PERSPECTIVES
Mid-Cap
Growth of $1
Large-Cap
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
11
Equity
GLOBAL PERSPECTIVES
Equivalent to P/E of 13
7.86
Equivalent to P/E of 51
1984 1987 1990 1993 1996 1999 2002 2005 2008 2011
1.97
Note: Earnings Yi ld i th i N t E i Yield is the inverse of th P/E ratio and i calculated as th sum of th reported next t l months earnings estimates divided b market f the ti d is l l t d the f the t d t twelve th i ti t di id d by k t capitalization. The 10-year U.S. Treasury yield is used for bonds. Source: Standard & Poors, First Call, Reuters, Bloomberg, FactSet
12
Equity
GLOBAL PERSPECTIVES
Dividend Yields
Except for the 2008 spike, stock dividend yields are above levels seen since 1996 and remain historically attractive relative to bond yields.
4
%
Dividend Yields
0 3 (2)
average
(4) 2 (6)
Bonds Attractive
(8) 1987 1990 1993 1996 1999 2002 2005 2008 2011
Note: Bond yield is represented by the 10-year U.S. Treasury note. Source: Standard & Poors, Reuters, FactSet
13
Equity
GLOBAL PERSPECTIVES
150%
2012 S&P 500 Earnings Forecast: $105 2012 S&P 500 Price Forecast: 1425
2,200
100%
1,900
-50% %
700
-100% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
400
Source: Standard & Poors, First Call, FactSet, ING Investment Management
Equity
GLOBAL PERSPECTIVES
1,600
400 200 0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
15
Equity
GLOBAL PERSPECTIVES
1Q 06
1Q 07
1Q 08
1Q 09
1Q 10
1Q 11
Historical
Projected
Note: E i N t Earnings G Growth is th percentage change in the cumulative share weighted EPS earnings f th i the t h i th l ti h i ht d i from th t of a year ago. S that f Surprise P i Percent is th share t i the h weighted average of the ratio of actual company earnings vs. the consensus estimate. Source: Bloomberg, Standard & Poors, Factset
16
Equity
GLOBAL PERSPECTIVES
Growth Historical 3 Year Sales Growth % Long-term Estimated Growth % Estimated 2011 EPS Growth %
S&P 500
Russell Midcap
Russell 2000
S&P 500
Russell Midcap
Rich valuation
17
Equity
GLOBAL PERSPECTIVES
15
1,085
14
14.0
1999
2001
2003
2005
2007
2009
2011
Note: Values are calculated based on a market value-weighted sum of th quarterly hi t i l results of th S&P 500 constituents excluding Fi N t V l l l t db d k t l i ht d f the t l historical lt f the tit t l di Financials. i l Values reflect results for trailing four quarters at each quarter end. Data as of 12/30/11. Source: Standard & Poors, Compustat, FactSet
18
Equity
GLOBAL PERSPECTIVES
80 70 60 50
40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
19
Equity
GLOBAL PERSPECTIVES
U.S. Investment Grade Treasury y( ) Treasury (1-3YR) Treasury (20+YR) Government Related Corporate Fixed rate MBS ABS CMBS Hybrid ARM Barclays Aggregate High Yield and Global High Yield gg g Global Aggregate Emerging Markets Senior Loans
0 0 0 69 181 63 67 207 7 69
(0.7) ( ) (0.1) (2.3) 0.1 0.8 0.1 (0.1) 1.0 0.1 (0.0) (0 0)
(0.3) ( ) (0.0) (2.6) 1.1 3.1 0.5 1.0 2.9 0.6 0.9 09
9.8 1.6 33.8 6.7 8.1 6.3 5.1 6.2 3.6 7.8 78
5.9 2.4 9.4 5.0 9.0 5.5 5.9 18.5 2.5 6.5 65
9.0 7.3 10.2 8.0 4.6 7.0 2.2 5.6 6.3 7.0 70
3.1 3.9 0.9 4.3 4.3 5.2 4.7 4.7 4.8 4.3 43
9.6 1.5 32.5 7.5 10.4 6.5 5.6 7.0 4.0 8.4 84
5.0 1.7 9.4 5.6 13.6 5.8 10.0 21.6 4.3 7.5 75
6.4 3.5 10.0 6.1 7.0 6.4 4.3 6.6 5.1 6.4 64
5.5 3.2 8.6 5.5 6.5 5.6 4.4 N/A N/A 5.7 57
(21.4) 33.7
Note: All spreads are option-adjusted spreads except for Emerging Markets and Senior Loans. Emerging Markets spread is the spread over the U.S. Treasury curve. S i L Senior Loans spread i th average th d is the three-year call secondary spread. All returns are t t l returns including di id d expressed as percentages. ll d d t total t i l di dividends d t Returns for 3- and 5-year periods are annualized. All other returns are cumulative. Source: Barclays Capital, JPMorgan, Standard & Poors
20
Fixed Income
GLOBAL PERSPECTIVES
Yield Curves
The steep U.S. yield curve is indicative of economic growth. Higher yield opportunities can be found outside the U.S.
6 5 4
14 12 10 8
02/29/12 12/31/08
3 2 1 0
6 4 2
3 mo 2 yrs
5 yrs
10 yrs
2 yrs 0.30 1.13 0.73 3.10 4.79 5 yrs 0.86 2.69 1.44 3.50 4.69
30 yrs
10 yrs 1.97 3.83 2.06 4.08 4.69 30 yrs 3.09 4.63 2.56 4.50 4.81
3 mo 2 yrs
5 yrs
3 mo 0.08 0.46 0.06 0.11 4.44 5.60 9.06 8.85 8 85
10 yrs
2 yrs 0.30 0.41 0.17 0.11 4.73 5.93 8.16 10.02 10 02 5 yrs 0.86 0.98 0.82 0.30 5.28 7.75 8.31 11.07 11 07
30 yrs
10 yrs 1.97 2.06 1.82 0.97 6.22 7.82 8.19 11.29 11 29 30 yrs 3.09 3.23 2.43 1.94 7.64 8.77 8.55 11.40 11 40
21
Fixed Income
GLOBAL PERSPECTIVES
Global Yields
Investors seeking income may benefit from the rich opportunities for higher yield available from global bonds.
Source: Bloomberg
22
Fixed Income
GLOBAL PERSPECTIVES
9 % 8 7 6
4 3 2 1 0
1 basis point
(1) 1987 1990 1993 1996 1999 2002 2005 2008 2011
Note: 3-Month T-Bill Yield is annualized based on purchase at a discount and holding to maturity. Source: Reuters, Bloomberg, FactSet
23
Fixed Income
GLOBAL PERSPECTIVES
7 6 5 4
1 3
3 2
1.96%
0
0%
Note: Real 10-Year Treasury Yield is equal to the 10-Year Treasury yield minus core CPI (ex food and energy) Source: Federal Reserve, Bloomberg, FactSet
24
Fixed Income
GLOBAL PERSPECTIVES
116
Note: Municipal yields represent the yield-to-worst for the Merrill Lynch AA municipal index. 10-year U.S. Treasury yields are used. Source: Merrill Lynch, Reuters, Bloomberg, FactSet
25
Fixed Income
GLOBAL PERSPECTIVES
Lehman crisis
3
5
4
3.4
1
0.40
0
1 0 1990 1993 1996 1999 2002 2005 2008 2011
Euro crisis II
Note: C N t Corporate Baa Spreads are b t B S d benchmark average rates i excess of 10 h k t in f 10-year U S T U.S. Treasury yields. Lib i th L d I t b k Off Rate, the i ld Libor is the London Inter-bank Offer R t th interest rate banks charge each other for loans. Source: Moodys, Reuters, Federal Reserve, Bloomberg, FactSet
26
Fixed Income
GLOBAL PERSPECTIVES
Mortgage Spreads
12
Loan Delinquency
3.0
10
Residential
9.9
2.5
2.1
2.0
1.5
1.0
1.6
Note: Mortgage spread equals the Freddie Mac 30-year fixed rate mortgage yield minus the 10-year U.S. Treasury yield. Source: Federal Reserve (Federal Financial Institutions Examination Council Report), Freddie Mac, FactSet
27
Fixed Income
GLOBAL PERSPECTIVES
Pac Pac Pac Pac S&P 500 Ex-Japan Ex-Japan Ex-Japan Ex-Japan -37.0% 17.1% 33.2% 31.7% 73.0% EME 32.6% 32 6% UK 30.7% S&P 500 15.8% Japan 6.3% 6 3% Europe Ex-UK 17.5% 17 5% UK 8.4% S&P 500 5.5% Japan -4.1% 4 1% Europe Ex-UK -45.0% 45 0% UK -48.3% EME -47.1% Pac Ex-Japan -50.0% UK 43.4% 43 4% Europe Ex-UK 33.9% S&P 500 26.5% Japan 6.4% 6 4% Japan 15.6% 15 6% S&P 500 15.1% UK 8.8% Europe Ex-UK 2.4% 2 4%
Note: All data are based on equity indices for each regional or country index and are total returns including dividends for each calendar year or partial year. Source: MSCI, Standard & Poors, FactSet
28
International
GLOBAL PERSPECTIVES
Regions Euro x-UK USD local UK USD local Pac x-Japan USD local Japan USD local S&P 500 7.0 4.6 5.2 3.9 4.5 3.2 5.0 50 11.5 4.3 12.8 9.1 8.9 6.0 14.5 10.1 9.8 98 15.5 9.0 (14.5) (12.1) (2.5) (1.8) 2.4 5.1 8.8 12.2 33.9 29.0 43.4 27.7 73.0 45.8 6.4 64 9.3 26.5 (45.0) 17.5 (42.7) (48.3) (28.5) 6.6 8.4 6.6 36.4 22.5 30.7 14.6 33.2 25.9 6.3 63 7.3 15.8 11.3 28.6 7.4 20.1 14.8 20.3 25.6 25 6 44.7 4.9 (10.6) (8.7) (0.2) 1.6 (0.4) (4.8) (10.0) (10 0) (11.1) 5.1 19.6 15.4 24.4 19.7 32.9 17.2 12.4 12 4 5.5 25.6 (3.2) (4.6) (1.4) 2.7 5.4 0.5 (5.6) (5 6) (12.5) 1.6 6.8 1.8 6.2 4.9 13.9 7.9 4.5 45 (0.6) 4.2
(50.0) 31.7 (41.6) 21.6 (29.1) (4.1) (29 1) (4 1) (42.5) (10.1) (37.0) 5.5
Note: Returns for periods greater than one year are annualized. All returns reflect total return including dividends expressed as a percentage. Source: MSCI, Standard & Poors, FactSet
29
International
GLOBAL PERSPECTIVES
Finland
Hong Kong
Belgium
Canada
Netherlands
Australia
Switzerland
Denmark
Singapore
Germany
France
Austria
N Zealand
Sweden
Norway
Ireland
EAFE
USA
48
-6
-7
Hu ungary
China
Philip ppines
South Africa
South Africa
ch Czec Rep
Indo onesia
Note: All returns reflect total return including dividends expressed as a percentage. Source: MSCI, Standard & Poors, FactSet
Arge entina
30
R Russia
Th ailand
Colombia
Egypt
P Poland
Korea
India
Brazil
alaysia Ma
Pa akistan
Mo orocco
T Taiwan
T Turkey
Israel
International
GLOBAL PERSPECTIVES
J Jordan
Portugal
Greece
UK
Japan
Spain
Italy
Growth of $1
1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
break even
2012
31
International
GLOBAL PERSPECTIVES
Major Currencies
Although the U.S. dollar dropped only about 1% in 2011, the dollar is 38% below its 1985 peak compared to a tradeweighted basket of world currencies.
$/
rising vs. $
falling vs. $
rising vs. $
12/31/11: 1.55 2/29/12: 1.60 Change: 3.2%
1996
1999
2002
2005
2008
2011
60 1982
1986
1990
1994
1999
2003
2007
2011
Source: FactSet
32
International
GLOBAL PERSPECTIVES
International Economics
China, India and Brazil are growing rapidly, and China is now second only to the U.S., while Germanys exportdriven economy is the runaway euro zone leader.
Countries Developed Markets US Germany Canada UK Eurozone E Japan Ireland Emerging Markets Brazil Russia India China Mexico 2,557 1,540 1,749 7,197 1,176 12.6 13.9 1.5 5.4 10.3 6.7% 4.5% 6.8% 8.9% 5.4% 3.9% 8.9% 9.4% 10.4% 5.2% 11.2 % 33.9 % 17.9 % 28.8 % 30.0 % 203 139 1,189 1,337 114 5.5 6.6 7.2 4.1 4.79 29 39 26 36 27 USD (Billions) 15,176 3,643 1,760 2,445 13,310 13 310 6,065 221 GDP Per Capita 48.8 42.8 51.6 39.0 25.5 25 5 47.5 45.8 1-Yr Change 1.7% 3.6% 2.5% 0.8% 1.6% 1 6% (0.9%) (0.4%) 5-Yr Change 2.7% 3.9% 2.8% 2.6% 3.3% 3 3% 1.7% 5.3% Trade (% of GDP) Exports 10.0 % 41.2 % 26.6 % 18.2 % 18.5 18 5 % 14.5 % 56.7 % Demographics Population Unemployment Median (Millions) % Age 311 82 34 63 329 127 5 8.3 6.8 7.6 7.8 10.7 10 7 4.6 14.2 45 35 37 45 41 40
33
International
GLOBAL PERSPECTIVES
Balance Sheet Strength B l Sh t St th Long-term Debt to Capital Ratio 37.6 41.0 24.0
Note: Valuation and Profitability figures are weighted harmonic averages, a statistical technique that reduces the effects of extreme outlying data on the f f ff f average. Long Term Debt to Capital figures are weighted averages. Source: FactSet
34
International
GLOBAL PERSPECTIVES
World GDP
80 70 60 50
60,000
40,000
40 30
20,000
20 10
Global Emerging Markets Top 8*
0 1991
1995
1999
2003
2007
2011
Source: The World Bank Group * China, India, Russia, Brazil, Mexico, Korea, Indonesia and Taiwan
35
International
GLOBAL PERSPECTIVES
50
120
30
100
80 20 60 10 40 0
Least Dev. Most Dev China U.S. US Brazil Japan
*G7= France, Italy, Germany, Japan, U.K., U.S and Canada Source: IMF, CIA World Factbook
36
International
GLOBAL PERSPECTIVES
Euro Zone
Even with total debt at 152% of GDP, Greece accounts for less then 3% of the euro zone, but Italy and Spain are major economies with much higher total debt at 120% of GDP.
Euro Area 2010 GDP by Country Austria Slovak 3% Belgium Republic Slovenia Cyprus yp 1% 4% 0% 0% Finland Portugal Spain 2% 2% 12% Netherlands 6% Malta France 0% 21% Luxembourg 0% Italy 17% Ireland 2% Greece 3% Germany 27%
0 2000 Euro Zone Debt
Gross Debt in Euros (billions) Debt as % of GDP
37
International
GLOBAL PERSPECTIVES
2,000
1,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
38
International
GLOBAL PERSPECTIVES
Consumer Trends
At about 70% of GDP, the U.S. consumer is the game changer in the economic recovery. Consumption, income and retail sales are at new highs, and retail sales are rising consistently.
14000
$ billions
8,000
450
7,000
Personal Income
Retail Sales
2,000
1,000 1 000
Source: FactSet
39
Economy
GLOBAL PERSPECTIVES
Consumer Confidence
U.S. consumer confidence seems low, but consumer confidence is backward-looking and has often been a contrary indicator for subsequent stock market returns.
160 140 120 100 80
Total Index Index Level Market returned 16.3% in subsequent 12 months
2007
2008
2009
2010
2011
40
Economy
GLOBAL PERSPECTIVES
2.0 % 1.0 0.0 (1.0) (1 0) (2.0) (3.0) (4.0) 1987 1989 1991 1993 1995 1997 1999 2001
Recessions
2003
2005
2007
2009
2011
2010
2011
Source: Bloomberg, Factset The Conference Board U.S. Leading Index consists of the weighted average of the following indices: 1. 1 Average weekly hours manufacturing hours, 2. 2 Average weekly initial jobless claims 3. Manufacturers 3 Manufacturers new orders consumer orders, 4. Vendor performance, slower deliveries 5. Manufacturers new orders, capital 6. Building permits, new private housing units 7. Stock prices, 500 common stocks 8. Money Supply, M2 9. Interest Rate Spreads10. Index of consumer expectations
41
Economy
GLOBAL PERSPECTIVES
Broadening Manufacturing
U.S. factory activity remains in expansionary territory as does the global index, but the euro zone is hovering at the precipice of economic contraction.
65 60 55 50 45 40 35 30 2001 2003 2005 2007 2009 2011
30 1997 1999 2001 2003 2005 2007 2009 2011
Manufacturing
65 60
Global Manufacturing
Euro zone PMI
56.8 56 8
55
51.1 52.4
50
49.0
45 Global PMI 40
Contractionary (<50)
35
42
Economy
GLOBAL PERSPECTIVES
1,600
Business Fixed Investment
1,400
Highest g level ever
1,200
1,000
800
600 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Factset
43
Economy
GLOBAL PERSPECTIVES
Employment Payrolls
Total payrolls, including all non-farm employment, have been positive, but not enough to bring unemployment rates down significantly.
000s +257 most recent private
Total Payrolls
(400) (600) (800) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: FactSet
44
Economy
GLOBAL PERSPECTIVES
Unemployment Rate
High unemployment may reluctantly recover as growth resumes; recent reports are encouraging, and news of job growth and payrolls has been positive.
800,000
000s Recessions
12% 11%
Unemployment Rate
10% 9% 8% 7%
600,000
400,000
6% 5%
Initial U I i i l Unemployment Claims l Cl i
4% 200,000 3% 2% 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011
45
Economy
GLOBAL PERSPECTIVES
Breakdown Consumption: 71% Government: 20% Investment: 12% Exports: 12% E t Imports: (15%)
4Q11 3.0%
Grow of $1 wth
Percent (%)
$7 5 $6 0 $5 $4 (5) Real GDP Cumulative Value starting at $1 (10) 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 $3 $2 $1
Source: Bloomberg
46
Economy
GLOBAL PERSPECTIVES
Inflation CPI
Core and headline inflation remain under control; while commodities prices spiked dramatically in 2009-2010, recent figures show a marked softening.
700
Index Level %
15 600 10 500
Core Inflation (right axis) Headline Inflation (right axis) CRB Index (left)
400
300 0 200
100 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
(5)
Note: Core CPI reflects consumer price inflation excluding food and energy. Source: Factset.
47
Economy
GLOBAL PERSPECTIVES
20 15 10
207
200
180
5 0
160 (5)
137
140 (10) (15) 120 (20) 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (25)
48
Economy
GLOBAL PERSPECTIVES
2,500
2,000 2 000
6,000 1,500 5,500 5,000 1,000 4,500 4,000 3,500 3,000 3 000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 0 500
49
Economy
GLOBAL PERSPECTIVES
1.4 1.3
1.4
1.2
0.8
19%
05
06
07
08
09
10
11
12
13
14
15
16
Source: Congressional Budget Office, Office of Management and Budget, Data as of 10/31/11.
50
Economy
GLOBAL PERSPECTIVES
120
% of GDP
Deficit Levels
> 90% of GDP
100
12,000,000 12 000 000
80
8,000,000
Debt
60
40
4,000,000
Debt > 9.4% of GDP
20
Deficit
0
Deficit
Source: Factset
51
Economy
GLOBAL PERSPECTIVES
4,000 4 000
3,000
2,000
Japan 21%
1,000
China 27%
0 2002
2004
2006
2008
2010
2012
52
Economy
GLOBAL PERSPECTIVES
Ireland Cana - 2012 ada Cana - 2011 ada H Hong Kong S Singapore Canada Russia Turkey O OECD AVG 20.0% 20.0% 24.3% 25.0% % 28. .0% 28. .0% Australia Japan India Germany France Brazil U.S.A. 3 30.0% 3 30.0% 3 30.0% 33.0% 33.3% 34.0% 35.0% 18.0% 17.0% 16.5% 16.5% 15.0%
12.5 5%
The average marginal corporate tax rate for all OECD countries is 24.3%. The U.S. is highest at 35%.
Economy
China U.K. Indonesia
53
GLOBAL PERSPECTIVES
Copper
10,000
$1,600 $1 600
8,000
$1,200
6,000 6 000
8,585
$800
4,000
503
Nominal Price/o Price/oz.
439
$400
2,000
Real Price/oz.
54
Source: FactSet, (gold divided by CPI U.S. city average with 9/30/1976 = 100)
Economy
GLOBAL PERSPECTIVES
1,000
800
107
100 80 600 60 40 20 200 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 0
400
Note: Oil Prices are West Texas Intermediate light crude spot price (NYMEX). Source: US Dept of Energy, FactSet
55
Economy
GLOBAL PERSPECTIVES
U.S. Trade
A growing economy fuels demand for imports; the trade deficit hit a 10-year low in the great recession as demand dwindled. Exports recently reached their highest level ever at $180 billion.
0 (10) (20) (30) (40) (50) (60) (70) (80) 1992
Exports (right axis) Imports (right axis) Trade Deficit (left axis) $USD billions Recessions $USD billions
250
200
Highest Export Level SEP 11 $180
150
100
50 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Source: FactSet
56
Economy
GLOBAL PERSPECTIVES
Cash 1.00
Hdge Fds 0.10 0.02 0.12 0.74 0 74 0.82 0.74 0.82 0.45 1.00
Note: Correlation coefficients describe the degree to which two variables are related, ranging from -1 to +1. Larger values (positive or negative) indicate stronger correlation, with +1 indicating the variables tend to move together and -1 indicating the variables move opposite one another. Zero correlation indicates independent movement. All Long Run Correlation coefficients are calculated based on monthly total return data for 20 years, except for Cash movement Long-Run years which goes back 12 years. Standard deviations are calculated based on monthly data that is annualized. Source: Barclays Capital, MSCI, Russell Investments, Standard & Poors, Citigroup, FTSE, NAREIT, HFR, FactSet
57
Allocation
GLOBAL PERSPECTIVES
58
Allocation
GLOBAL PERSPECTIVES
Note: All returns are annual returns except year-to-date (YTD) returns above. When considering alternative investments, investors should consider various risks i l di th use of l i i k including the f leverage and other speculative i d th l ti investment practices, illiquid i t t t ti illi id instruments, and complex t structures. These t d l tax t t Th investments are intended for sophisticated investors only, as defined by law. All investing involves substantial risk of loss. Source: CSFB/Tremont, NCREIF, Standard & Poors, Bloomberg
59
Allocation
GLOBAL PERSPECTIVES
Small-Cap Stocks p
100
Large-Cap Stocks Corporate Bonds
Growth of $1
10
0.1 01 1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Source: FactSet
60
Allocation
GLOBAL PERSPECTIVES
7.08% 14.60%
8.31% 11.92%
Index returns for the period 1995-2011 (YTD): S&P 500, S&P400 Midcap, S&P600 Smallcap, MSCI EAFE, MSCI BRIC, Barclays Capital U.S. Corporate Bonds, Bonds Barclays Capital US Treasury Bonds Barclays Capital Global Aggregate Bonds, Barclays Capital U S High Yield Bonds NAREIT REIT. For Bonds, Bonds U.S. Bonds., REIT illustration only. Past performance is not a guarantee of future results. Investors cannot invest directly in an index. Source: FactSet. Returns data from 9/30/1995-12/30/2011.
61
Allocation
GLOBAL PERSPECTIVES
Average Returns Entire Period Annual (%) Average Down Months (%) 11.5 11.6 10.1 14.6
(9.9)
(11.4)
(10.4)
(11.1)
Subsequent Returns (% ) 1-year 3-years 14.8 11.0 20.8 15.8 12.7 7.8 20.5 19.7
Note: Assets include U.S. Large-Cap Equities (S&P 500), U.S. Small-Cap Equities (Russell 2000), International Equities (MSCI EAFE) for the period January 1980 S t b 2011 and E September d Emerging M k t E iti (MSCI E i Markets Equities Emerging M k t I d ) J i Markets Index), January 2001 S t b 2011. Th minimum monthly decline September 2011 The i i thl d li threshold defined as -7%. For illustration only. Past performance is not a guarantee of future results. Investors cannot invest directly in an index. Source: FactSet, ING Investment Management.
62
Allocation
GLOBAL PERSPECTIVES
Averag Return % ge
14 12
Other asset classes not included in the analysis: U.S. Large-cap U.S. Bonds 4.5 6.0 17.0 4.0
Log. (1-Asset)
Note: The analysis includes returns for the Russell 2000 Small-cap Index, MSCI EAFE International Index, NAREIT REIT Index and MSCI Emerging Markets Equity index for the period January 1995 June 2011. Hypothetical 2-, 3- and 4- asset portfolios were created based on equal weighting of the included assets. The return for each portfolio (vertical axis) is the average annualized return over the measurement period. The risk (horizontal axis) equals the annualized standard deviation for the period. Standard deviation measures dispersion around the average return, indicating whether the returns tend to be close to the average or spread over a wide range. The dotted line ellipses represent theoretical attainable sets of other portfolios of those assets with different asset weightings. As more assets are added to the hypothetical portfolios, historically risk tends to decline. For illustration purposes only. Past performance is not a guarantee of future results. Investors cannot invest directly in an index. Diversification does not guarantee against a loss and th t ff t lt I t ti t di tl i i d Di ifi ti d t t i t l d there i no guarantee th t a is t that diversified portfolio will consistently outperform a non-diversified portfolio. 63 Source: ING Investment Management, FactSet.
Allocation
GLOBAL PERSPECTIVES
72/28
S&P 500 Stocks Return Risk 9.67% 11.70%
60/40
Return Risk 9.88% 9.90%
Note: Based on index return data for the period 1/31/1976-9/30/2011, compounded annually. Initial hypothetical portfolios comprised of 60% S&P 500, 40% Barclays Capital US Aggregate Bonds with rebalancing for the rebalanced portfolio on a quarterly basis. Risk equals historical annualized standard deviation. For illustration only. P t performance i not a guarantee of future results. Investors cannot invest directly in an i d d i ti F ill t ti l Past f is t t ff t lt I t ti t di tl i index. P tf li rebalancing may Portfolio b l i include trading costs and fees. Source: FactSet, ING Investment Management.
64
Allocation
GLOBAL PERSPECTIVES
Life Expectancy
Improving life expectancy for those of all ages means the probability of living many years in retirement is higher than most people realize.
Life Expectancy Before Retirement 65% 49.0 40.0 31.0 22.5 18.6 26% 46% Probability of Long Life at Age 65
30
40
50 Age
60
65
80
85 Age
90
Source: Table B. Expectation of life by age, sex, Hispanic origin and race for non-Hispanic population, United States, 2007, National Vital Statistics Reports, Vol. 59, No. 9, September 28, 2011.
65
Retirement
GLOBAL PERSPECTIVES
DB Plan Sponsors in Fortune 1000 700 600 500 400 300 200 100 0 2004 2005 Number of Sponsors S
No Frozen Plans
Frozen Plans
2006
2007
2008
2009
2010
2011
% Participating P
Defined Benefit
Defined Contribution
1985
1989
1995
2000
2005
2010
66
Source: Top: Towers Watson. Bottom: Employee Benefit Research Institute, U.S. Department of Labor, Bureau of Labor Statistics, National Compensation Survey: Employee Benefits in Private Industry in the United States, March 2004 March 2010, Bureau of Labor Statistics, 2004-2010.
Retirement
GLOBAL PERSPECTIVES
Actual Sources of Retirement Income 2009, Age 65 and Over Earnings g 28% Social Security 42%
Employer-sponsored saving plan Social Security Employer traditional pension Individual Retirement Account Other Oth savings and i i d investments t t Continued Employment Personally-owned guaranteed income products
44 33 29 29 26 24 14
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 1993-2011 Retirement Confidence Surveys, ebri.org Issue Brief, March 2011, No. 355. EBRI Databook on Employee Benefits, estimates from Current Population Survey, U.S. Census Bureau, March 2010 Supplement.
67
Retirement
GLOBAL PERSPECTIVES
70
$ trillions
60
57.4
50
4.5% 4 5%
40
30
20
68
Retirement
GLOBAL PERSPECTIVES
35 30 25 Percent (%) t
Reported Total Savings and Investments: 75% have saved < $100,000
46
22
35 30 25 20 15 10 5 0
10 14 11 9 11
20 15 10
19
10 7
5 0
< $250 $250-500 $5001,000 $1,000$1 0001,500 $1,500+ $1 500+
$50100k
$100250k
250k+
Source: E l S Employee B Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2011 R ti fit R h I tit t d M th G ld A i t I Retirement C fid t Confidence S Survey, ebri.org I bi Issue Brief, March Bi f M h 2011, No. 355, Figure 26, Amount of Savings Workers Think They Need for Retirement, including data only for those who responded (88%), Figure 3, Reported Total Savings and Investments, Among Those Providing a Response.
69
Retirement
GLOBAL PERSPECTIVES
34
13.0
Live comfortably
Doing a good job of preparing Confidence that social security p q for retirement will provide benefits of equal value
Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2011 Retirement Confidence Survey, ebri.org Issue Brief, March 2011, No. 355, Figure 7, Percentage of Workers Very Confident in Financial Aspects of Retirement, selected retirement responses.
70
Retirement
GLOBAL PERSPECTIVES
2003
MSCI EM 55.8% R2000 47.3% MidCap 40.1% MSCI EAFE 39.2% NAREIT/REIT 37.1% SP500 28.7% Balanced 18.5% 18 5% BC U.S. 4.1% T-Bill 1.0%
2004
NAREIT/REIT 31.6% MSCI EM 25.6% MSCI EAFE 20.7% MidCap 20.2% R2000 18.3% SP500 10.9% Balanced 8.3% 8 3% BC U.S. 4.3% T-Bill 1.2%
2005
MSCI EM 34.0% MSCI EAFE 14.0% MidCap 12.7% NAREIT/REIT 12.2% SP500 4.9% R2000 4.6% Balanced 4.0% 4 0% T-Bill 3.0% BC U.S. 2.4%
2006
NAREIT/REIT 35.1% MSCI EM 32.2% MSCI EAFE 26.9% R2000 18.4% SP500 15.8% MidCap 15.3% Balanced 11.1% 11 1% T-Bill 4.8% BC U.S. 4.3%
2007
MSCI EAFE 11.6% BC U.S. 7.0% Balanced 6.2% MidCap 5.6% SP500 5.5% T-Bill 4.7% R2000 -1.6% 1 6% NAREIT/REIT -15.7% MSCI EM -39.4%
2008
BC U.S. 5.2% T-Bill 1.6% Balanced -22.1% R2000 -33.8% SP500 -37.0% NAREIT/REIT -37.7% MidCap -41.5% 41 5% MSCI EAFE -43.1% MSCI EM -53.3%
2009
MSCI EM 78.5% MidCap 40.5% MSCI EAFE 32.5% NAREIT/REIT 28.0% R2000 27.2% SP500 26.5% Balanced 18.4% 18 4% BC U.S. 5.9% T-Bill 0.1%
2010
NAREIT/REIT 28.0% R2000 26.9% MidCap 25.5% MSCI EM 18.9% SP500 15.1% Balanced 12.1% MSCI EAFE 8.2% 8 2% BC U.S. 6.5% T-Bill 0.1%
2011
BC U.S. 7.8% NAREIT/REIT 4.7% Balanced 4.4% SP500 2.1% T-Bill 0.0% MidCap -1.5% R2000 -4.2% 4 2% MSCI EAFE -11.7% MSCI EM -18.2%
NAREIT/REIT = NAREIT Equity REIT MSCI EM = MSCI Emerging Markets - Net Midcap = Russell Midcap Index
T-Bill = U.S. 30-day T-Bill R2000 = Russell 2000 Index SP500 = S&P 500
BC Agg. = Barclays Capital U.S. Aggregate Bond Index Balanced = 60% S&P 500, 40% BC Aggregate MSCI EAFE = MSCI EAFE USD
Note: For illustration only. Past performance is not a guarantee of future results. Investors cannot invest directly in an index. Source: FactSet, ING Investment Management.
71
Retirement
GLOBAL PERSPECTIVES
60 50 40
31.8
19.6 15.9 7.8 10.3 9.4 10.1 7.1 7.7 9.8 2.0 20 Stable Value
60s
2.8 28
4.3
Bonds
Money Market
Note: Dollar weighted averages, omits minor investment options, may not sum to 100 due to rounding. Source: EBRI/ICI Participant-Directed Plan Data Collection Project.
72
Retirement
GLOBAL PERSPECTIVES
14 12 10 8 6 4 2 0 (2)
New graph N h
(4) 1982
1986
1990
1994
1999
2003
2007
2011
Note: Return data for the S&P 500 Index, Russell 2000 Small-cap Index, Barclays Capital U.S. Corporate Bond Index and the 30-day U.S. T-Bill index for rolling 18.5-year periods f lli 18 5 i d from 1963 2011 C l l t d as th compound annualized return i excess of th rate of i fl ti f each asset class. Th rate of 1963-2011. Calculated the d li d t in f the t f inflation for h t l The t f inflation is based on the monthly reported change in the Consumer Price Index (CPI). Source: FactSet, ING Investment Management.
73
Retirement
GLOBAL PERSPECTIVES
Note: Includes both 401(k) and IRA plans. Components may not add to the illustrated total due to rounding. Source: Investment Company Institute, ING Investment Management.
74
Retirement
GLOBAL PERSPECTIVES
Index Definitions
Barclays Capital U.S. Aggregate Bond Index is composed of U.S. securities in Treasury, Government-Related, Corporate, and Securitized sectors that are of investment-grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $250 million. Barclays Capital U.S. Corporate Bond Index is a component of the Barclays Capital U.S. Aggregate Index. Barclays Capital U.S. Corporate High-Yield Bond Index tracks y p p g the performance of non-investment grade U.S. dollar-denominated, fixed rate, taxable corporate bonds including those for which the middle rating of Moodys, Fitch, and S&P is Ba1/BB+/BB+ or below, and excluding Emerging Markets debt. Barclays Capital U.S. Treasury Bond Index is a component of the Barclays C it l U S A B l Capital U.S. Aggregate I d t Index. Barclays Capital Global Aggregate Bond Index measures a wide spectrum of global government, government-related, agencies, corporate and securitized fixed-income investments, all with maturities greater than one year. Barclays Emerging Market Bond Index includes fixed and floating-rate USD-denominated debt from emerging markets in the following regions: Americas, Europe, Middle East, Africa, and Asia. The Credit Suisse/Tremont Hedge Fund Index is an assetweighted hedge fund index covering over 5000 funds with at least US$50 million under management a 12 month track record, and management, 12-month record audited financial statements calculated net of performance fees and expenses. CS/Tremont sub-indexes track hedge fund strategies by methodology, asset class and/or use of leverage. Dow Jones Industrial Average is a price-weighted average computed from the stock prices of 30 large, widely held public companies in the U.S., adjusted to reflect stock splits and dividends. FTSE NAREIT US Real Estate Index presents comprehensive REIT performance across the U.S. economy, including all commercial investment and property sectors. FTSE EPRA/NAREIT Global Real Estate Index is designed to represent general trends in eligible real estate equities worldwide. The Chicago Board Options Exchange Volatility Index (CBOE VIX) is a measure of the implied volatility of S&P 500 index options. It is one measure of the market's expectation of volatility over the next 30 day period. JPMorgan Emerging Markets Bond Index Plus (EMBI+) tracks total returns for actively traded emerging markets debt instruments including U.S.-dollar denominated Brady bonds, Eurobonds, and traded loans issued by sovereign entities. y g Merrill Lynch Municipal Bond Index is an unmanaged index that includes tax-exempt fixed rate bonds across a broad range of quality and maturity segments. MSCI BRIC Equity Index is a market capitalization weighted index of about 320 companies located in Brazil, Russia, India and China. MSCI EAFE Index is a free float-adjusted market capitalization j p weighted index designed to measure the developed markets equity performance, excluding the U.S. & Canada, for 21 countries. MSCI Europe Index is a free float-adjusted market capitalization weighted index designed to measure equity performance of the developed markets in Europe consisting of 16 country indices. MSCI Pacific Index is a free float-adjusted market capitalization weighted index designed to measure developed markets equity performance of the in the Pacific region consisting of 5 countries. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that measures emerging market equity performance of 22 countries. 75
GLOBAL PERSPECTIVES
Index Definitions
MSCI U.S. REIT Index is a free float-adjusted market capitalization weighted index comprised of equity REITs that generate a majority of g their revenue and income from real estate rental and leasing operations. NASDAQ Composite Index is a market capitalization weighted index of the performance of domestic and international common stocks listed on The NASDAQ Stock Market including over 2,800 securities. The NCREIF (National Council of Real Estate Investment Fiduciaries) Property Index (NPI) is a market value-weighted index of total rates of return for a large pool of commercial real estate properties acquired in the private market for investment purposes. Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investible U.S. equity market. Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity market and includes approximately 1000 of the largest securities based on market capitalization and representing approximately 92% of the U.S. market. Russell 1000 Growth Index measures the large-cap growth segment of the U.S. equity market including Russell 1000 companies with higher price-to-book ratios and forecasted growth. Russell 1000 Value Index measures the large-cap value segment of the U.S. equity market including Russell 1000 companies with lower price-to-book ratios and l i t b k ti d lower expected growth. t d th Russell Midcap Index measures the performance of mid-cap stocks in the U.S. equity market including 800 of the smallest securities in the Russell 1000 Index, based on market capitalization. Russell Midcap Growth Index measures the performance of the midcap growth segment of the U.S. equity market including Russell Midcap Index companies with higher price-to-book ratios and forecasted growth. Russell Midcap Value Index measures the performance of the midcap value segment of the U.S. equity market including Russell Midcap Index companies with lower p p p price-to-book ratios and forecasted growth. Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity market including approximately 2000 of the smallest securities based on market capitalization. Russell 2000 Growth Index measures the performance of smallsmall cap growth stocks in the U.S. equity market including Russell 2000 companies with higher price-to-value ratios and forecasted growth. Russell 2000 Value Index measures the performance of small-cap growth stocks in the U.S. equity market including Russell 2000 companies with lower price-to-value ratios and forecasted growth. S&P MidCap 400 Index is a benchmark for mid-sized companies, which covers over 7% of the U.S. equity market and reflects the risk and return characteristics of the broad mid-cap universe. S&P SmallCap 600 Index covers approximately 3% of the domestic q g p portfolio of small equities market and is designed to represent a p companies that are investable and financially viable. S&P 500 Index is a gauge of the U.S. stock market which includes 500 leading companies in major industries of the U.S. economy. S&P/LSTA (Loan Syndications and Trading Association) Leveraged Loan Index (LLI) is a total return market value index that tracks fully ( ) y funded, senior secured, first lien term loans syndicated in the U.S., as well as dollar-denominated overseas loans, including 90-95% of the institutional universe. The S&P GICS (Global Industry Classification Standard) sectors provide standardized industry definitions consisting (in the U.S.) of 10 sectors, 24 industry groups, and 68 industries. 76
GLOBAL PERSPECTIVES
Important Disclosures
This information has been prepared by ING Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties th t could cause actual d k i k d t i ti that ld t l results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels and (4) increasing levels of loan defaults (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities. All indexes are unmanaged and an individual cannot invest directly in an index. Index returns do not include fees or expenses. Past performance is no guarantee of future results. The views and judgments expressed are those of ING Investment Management. They are subject to change at any time. These views do not necessarily reflect the opinions of any other firm firm. All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. All security transactions involve substantial risk of loss. You should consult your tax, legal, accounting or other advisors b t th tt di d herein. about the matters discussed h i As indicated on each page, some information was obtained from outside sources and is believed to be reliable, but ING does not guarantee its completeness or accuracy.
77
CID 3012
GLOBAL PERSPECTIVES