1. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 0 Foreign Investments in a pension fund context by Eric Conrads Oct 2008. Brazil

2. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 1 IMPROVE EFFICIENT FRONTIER OF THE PORTFOLIO WITH A BETTER RISK-RETURN MIX ACCESS & EXPLOIT INVESTMENT UNIVERSE OPPORTUNITIES FREEDOM OF CHOICE – LESS CONSTRAINTS- FLEXIBILITY EXPAND KNOW-HOW OF THE MANAGER FOR A BETTER UNDERSTANDING OF THE DRIVERS OF ITS LOCAL UNIVERSE CURRENCIES DIVERSIFICATION (eg devaluation reais) POLITICAL RISK (eg 2002 elections) KEY ELEMENTS OF ADDING FOREIGN INV.

3. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 2 2March 2008 MSCI LATIN AMERICA MSCI LATAM 152 stocks / MSCI WORLD 1949 stocks. LONG ONLY products are heavily concentrated countrywise and sectorwise! ROOM for INTERNATIONAL INVESTMENTS to dig for value and smooth risk concentration.

4. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 3 Foreign Investing: raising the Information Ratio Assume that the manager already has the highest possible information coefficient and cannot introduce any more skill to the stock selection process The manager has two non-exclusive options to further increase IR: - 1.Expand N – the universe of securities from which stock selection is made and / or 2.Increase TC – by reducing the constraint on active weights to allow the inclusion of short positions in the portfolio. This will allow the manager to take more active bets on stocks based on their forecast residual returns IR = IC * TC * √N SkillFreedomBreadth

5. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 4 4March 2008 LATIN AMERICA AuM Merrill Lynch expects $37bn a year for the next five years in domestic funds flow to equities via asset base growth, rotation to equities and investment returns. Colombia pension funds $36bn and Peru $ 23bn. AFPs $300bn…4% of AuM in hedge funds would mean a bit less than $15bn.

6. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 5 Pension funds foreign investments As of October 2008, limits in Chile have been raised and investment products expanded to derivatives, swaps…

7. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 6 Fuente: Asociación de AFP Asset allocation in Chilean pension fund: the importance of foreign investments

8. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 7 THE MANAGERS HAVE USED AT THE MAXIMUM THE AVAILABILITY OF INTERNATIONAL DIVERSIFICATION Fuente: Asociación de AFP Asset allocation in Chilean pension fund: the importance of foreign investments

9. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 8 MULTI-FUND SYSTEM: INTERNATIONAL EXPERIENCE 2002: CHILE moves from 1 to 5 funds & MAX 30% internationally invested – Initially 2 funds for RISK needs: people close to pension preoccupied by volatility – Expanded to 5 funds for RETURN needs: critic was the lack of equities exposure in the fund. 2004: MEXICO offers the choice between 2 funds with MAX 15% in equities 2005: SLOVAKIA introduces 3 multi - funds: growth-balanced-conservative 2006: PERU introduces 3 multi - funds: growth-balance-conservative – THE AFP have the freedom to introduce more if they want…3 was a CHOICE! 2008: MEXICO moves from 2 to 5 funds and raises MAX equities to 30% CHILE reformed the system (more instruments, raised limits) PERU increased the foreign limit to 20% TO OFFER CHOICE OF “TAILOR-MADE” FUNDS RATHER THAN ONE “READY-TO-WEAR” FUND TO BALANCE INVESTMENT FLEXIBILITY WITH THE REALITY OF THE LOCAL CAPITAL MARKET WHAT MATTERS?

10. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet 9 ING Investment Approach A fully integrated regional investment process leveraging the ING network Regional Focus Weekly “ideas” call Monthly deep sector analysis Mexico - 2 analysts - AUM $16bn Colombia - 1 analyst - AUM $4bn Peru - 1 analyst AUM $7.4bn Chile - 5 analysts - AUM $32bn Uruguay - FI - AUM $0.6bn Brazil - 4 analysts - AUM $8bn Argentina - 1 analyst - AUM $7bn ING is the 2nd biggest pension fund manager in the region with a presence in 7 countries.

11. Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline www.ing-presentations.intranet