3. Importance of dividends for investors
Key points
• are less volatile – compared to earnings especially
during a period of contraction of the economy
• are currently the primary source of total equity
return and are suitable for long term investors in all
regions
Dividends
• yield is the only positive source of return as capital
gains and dividend growth can show negative figures
• are a stable valuation tool and a reliable signal of
the company’s future prospects
ING Investment Management 3
4. Dividend yield suitable for long-term investors
Over time, more than 80% of the total shareholder return comes from dividends !
ING Investment Management 4
5. A major contributor to total returns
This is true across the world !
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6. Dividend yield suitable for long-term investors
Dividends were the most important part of long-term returns in Europe as well
Source: Morgan Stanley Research, European strategy, 8 March 2010 – page 3
Over time, on European market, 76% of the total real shareholder return came from dividends!
7. Importance of dividends for investors
Dividend suitable for LT investors : an idea also shared by Academics
Some investors don’t like high yielding stocks, because:
“High yielding stocks = Companies that have run out of growth prospects and have nothing better to
do with their cash ……”
……but surprise, surprise ! History shows the opposite:
Starting Payout Average subsequent Worst subsequent Best subsequent
Quartile 10yrs earnings growth 10yrs earnings growth 10yrs earnings growth
1 (Low) -0.4% -3.4% 3.2%
2 1.3% -2.4% 5.7%
3 2.7% -1.1% 6.6%
4 (High) 4.2% 0.6% 11.0%
Data quoted from 1946 to 2001, US market
Source: “Surprise! High Dividends= High EarningsGrowth”,Arnott & Asness, Financial Analysts Journal, Vol.59, no.1 January/February 2003.
ING Investment Management 7
9. Our Investment Objectives
Identifying the best dividend stocks
Outperform the equity market in the long run (through the cycle)
Offer a lower volatility (downside protection, upside participation)
Offer a higher dividend yield (>100bp versus market)
Aims to achieve attractive risk adjusted returns through the cycle
ING Investment Management 9
10. Investment Process Overview : Europe Dividend
Process combines quantitative screening and fundamental analysis to
identify attractively priced stocks with high and sustainable dividend yields
Universe identification
8000 – 9000 names
Liquidity screen (Market Cap. & Turnover)
400 - 600 names
Dividend screen (Yield & Stability)
300 - 350 names
Fundamental analysis & New ideas
150 - 200 names
Portfolio construction
60 - 90 names
ING Investment Management 10
11. Overview Dividend Investment Process
Quantitative Fundamental Risk
1 Filter 2 Analysis 3 Portfolio
Construction 4 Management
Identify opportunities Back top picks Build high conviction Achieve consistency
portfolio
Quantitative screening Dividend sustainability Active management Equally weighting
Historical data Attractive valuation Stock driven Quarterly rebalancing
Risk control Sell discipline
Attractive yields Sustainable yields Diversified portfolio Consistency Risk Profile
Creativity within a disciplined framework
As of end February 2009
ING Investment Management 11
12. Quantitative Filter
Quantitative Objective: Identify attractive dividend yields
1 Filter
• Quarterly screening
• Separate experienced Quant team
Identify opportunities
• Proprietary Models
• Extensive in-house database
Quantitative screening
• > 25 years of history
Historical data • > 15,000 companies
• 3 dedicated IT/database-specialists
• Historical data
• Dividend yield threshold : min. 2.5% (2.0% for US High Dividend)
• Dividend & Earnings stability
Attractive yields • Market capitalisation threshold (min. 1bln EUR)
• Liquidity analysis
As of end February 2009
ING Investment Management 12
13. Fundamental Analysis
Fundamental Objective: Identify sustainable dividend yields
2 Analysis
• Relative Multiples analysis
• Dividend coverage
Back top picks • Dividend policy
• Earnings growth
Dividend sustainability • Earnings trend & revision
• Quality of balance sheet (leverage, interest coverage)
Attractive valuation
• Absolute valuation modelling (DCF based)
• Research team output (35 sector specialists, 12 years average
experience)
• 1, 3 and 5 year price targets
• Investment Cases
• DCF/ Company Modeling
• Sector outlook including theme selection
Sustainable yields • Company Meeting Notes
• What’s priced in analysis
• Sensitivity analysis (Top-line, margins, discount factor)
As of end February 2009
ING Investment Management 13
14. Portfolio Construction
Portfolio Objective: Build a diversified portfolio of high
3 Construction conviction names
• Active management
Build high conviction • Own stocks we like, rather than because they are in the
portfolio benchmark
• Stock driven
Active management • Most of risk budget allocated to stock selection
Stock driven • Select top picks per sector in close consultation with sector
Risk controls specialists
• Overlay controlled sector and regional tilts
• Risk monitoring
• Tracking error decomposition
• Monitor macro risk (sector, regional deviations)
Diversified portfolio
As of end February 2009
ING Investment Management 14
15. Risk Management
Risk Objective: Ensure consistency of risk profile
4 Management
• Equally weighting
• Size of company is not investment criteria
Achieve consistency • Spread risk homogeneously across holdings
• Quarterly rebalancing
Equally weighting • Sell winner/buy loser
• Contrarian bias
Quarterly rebalancing
• Reduce volatility of portfolio
Sell discipline
• Sell discipline based on dividend yield
• Exit dividend yield threshold (2%) at any time (1.5% for US High
Dividend)
• Ongoing fundamental analysis
• Positions monitored continuously : deteriorating fundamentals will
Consistency Risk Profile trigger a sell
As of end February 2009
ING Investment Management 15
16. Implementation
Implementation
Objective: Implement changes to portfolio
• Trading desk
Alpha preservation
• 6 equity persons in European team and 2 persons in US team
• Access to all pools of liquidity
Efficiency • Efficiency
Compliance • Use of FIX, Algorithms and pre-trade impact analytics
Effectiveness • Compliance
• Charles River pre- and post-trade compliance
• Effectiveness
• Externally benchmarked by Abel Noser
As of end February 2009
17. Monitoring and Reporting
Monitoring & Objective: Effective risk and client management
Reporting
• Monitoring
Oversight and • Performance monitoring and risk monitoring by IST
transparency
• Market and Credit Risk Committee
Risk analysis
• Investment Case Review Committee
Performance analysis
• Trade-costs analysed using Abel Noser
Trade-cost analysis
• Reporting
Marketing & Sales
support • Transparency for clients
• Marketing & Sales support by Portfolio Specialists
18. Portfolio Holdings Examples
A US Tech Company
80
Expected dividend yield 3.49%
Dividend Expected dividend cover 1.00
70
Dividend growth last 5 years 36.082
60
50
EPS current year 0.55
Earnings
40
EPS growth next year 56.26%
30
Gearing (net debt to capital) -25.21%
Interest coverage 961.75
20
Capital Structure
10
Credit rating A+
0 Rating outlook STABLE
3/01/2000
3/04/2000
3/07/2000
3/10/2000
3/01/2001
3/04/2001
3/07/2001
3/10/2001
3/01/2002
3/04/2002
3/07/2002
3/10/2002
3/01/2003
3/04/2003
3/07/2003
3/10/2003
3/01/2004
3/04/2004
3/07/2004
3/10/2004
3/01/2005
3/04/2005
3/07/2005
3/10/2005
3/01/2006
3/04/2006
3/07/2006
3/10/2006
3/01/2007
3/04/2007
3/07/2007
3/10/2007
3/01/2008
3/04/2008
3/07/2008
3/10/2008
3/01/2009
3/04/2009
Liquidity Avg daily value (3 mth) Mln EUR 754.71
A Listed Stock Exchange
160
Expected dividend yield 4.01%
Dividend Expected dividend cover 1.98
140
Dividend growth last 5 years 50.168
120
100
EPS current year 4.18
Earnings
80
EPS growth next year 12.49%
60
Gearing (net debt to capital) 49.30%
Interest coverage 6.46
40
Capital Structure
20
Credit rating AA
0 Rating outlook STABLE
5/02/2001
5/05/2001
5/08/2001
5/11/2001
5/02/2002
5/05/2002
5/08/2002
5/11/2002
5/02/2003
5/05/2003
5/08/2003
5/11/2003
5/02/2004
5/05/2004
5/08/2004
5/11/2004
5/02/2005
5/05/2005
5/08/2005
5/11/2005
5/02/2006
5/05/2006
5/08/2006
5/11/2006
5/02/2007
5/05/2007
5/08/2007
5/11/2007
5/02/2008
5/05/2008
5/08/2008
5/11/2008
5/02/2009
5/05/2009
Liquidity Avg daily value (3 mth) Mln EUR 94.82
Source: Bloomberg, 15/06/09
ING Investment Management 18
19. Sell discipline: examples
A Benelux bank A Swedish paper and packaging company
A UK tech company
ING Investment Management 19
20. ING IM Equity Value Team
Investment Strategy Team
Jan Straatman CIO
+
Denholm – van Gelderen – Gupta
Interaction & support
Reporting line
ING Equity Value
The Hague, 6 members
4 Equity Boutiques Strategy & Tactical Allocation
Avg. experience 13 yrs.
Top-Down Research
Core/Value/Specialties/ Nicolas Simar
Emerging Markets Head of Value, Relevant experience 13 yrs 10 members
Avg. exp. 10 yrs
Euro & Europe strategies
Nicolas Simar & Manu Vandenbulck
Global & US strategies Quantitative Investments
5 Fixed Income Boutiques Moudy El Khodr, Kris Hermie Quant research
& Adour Sarkissian
MM/Core/Credits/Loans/
EMD/Structured Investments Value strategies 11 members
Pierre Nicolas Avg. exp. 11 yrs
Central Trading Team Corporate Analytics Portfolio Specialist
13 members: 6 Equity
Traders + 2 in US Developed (29) & Emerging (6) Markets Vacancy
Avg. exp. 10 yrs Avg. exp. 12 yrs
Data as of 30 September 2009
ING Investment Management 20
22. Why us?
A leader in High Dividend investing.
one of the first in Continental Europe with 10 years of history.
and a proven track record over a full cycle
(from TMT bubble to recent commodity/ housing market bubble).
Consistency & transparency of process delivering:
an attractive and predictable risk-adjusted return profile with defensive
characteristics: downside protection + upside participation
and a contrarian bias.
Strong team, experienced and stable.
Strong and diverse client base.
2/3 of assets in our Luxembourg based funds are non-affiliated.
dedicated institutional mandates.
23. ING Equity Value boutique
A Leader in Dividend Investing since 1999
High Dividend investing since 1999 (€ 6.4 billion in AUM)
September 2007:
June 2002 March 2007:
March 2005: US domiciled International
ING (L) Invest Global High Dividend (3 stars) US domiciled Asia Pacific High High Dividend Equity Income
March 1999: US domicield Global
ING (L) Invest Euro High Dividend Equity Dividend Dividend Closed-End Fund (IAE) Closed-End Fund (IID)
September 2003:
(5 Stars - Superior Rating) US domiciled Closed-End Fund (IGD)
Global HiD Equity Mutual Fund
1999 2007 2010
February 2000: December 2004: February 2005: November 2005: June 2007:
Global High Dividend ING (L) Invest Europe ING (L) Invest U.S. High ING (L) Invest Asia Pacific US domiciled managed account
Dutch domiciled fund High Dividend fund Dividend (4 Stars) High Dividend International Equity
(4 Stars) (3 Stars) Dividend
June 2007:
US domiciled managed
account Global Equity
Dividend SMA/MF
ING Equity Value Boutique € Billion
Global High Dividend (includes IGD) 3.2
Euro High Dividend 1.3
Europe High Dividend 0.7
Process was
Asia Pacific High Dividend 0.4 not changed
U.S. High Dividend 0.4 over time
Belgium High Dividend 0.4
Total for ING IM globally € 6.4 bn
23
24. Identifying the best high dividend stocks
What we offer to our shareholders : predictable behaviour
Out-performance ING Euro High Dividend
Outperformance ratio based
100,00 140
on holding periods since
100,00
100,00
90,00 inception.
89,29
120
80,00
82,29
75,93 • This analysis of the behaviour of the P EUR
70,00 100 share class, aims at showing the manager’s
ability to deliver a risk/return profile in absolute
69,17
Number of Periods
60,00 terms and relative to the benchmark. As such,
80 the chart has its focus on the probability to
outperform over business cycles. As we aim to
in %
50,00 indentify the quality of the strategy, we choose
60 to compare fund's gross performance with the
40,00 benchmark in order to avoid distortions due to
fees. Base currency of the fund (EUR) has been
30,00 selected in order to avoid distortions due to
40
currency unintended risks
20,00 • The rolling period analysis splits the track
20 record of the investment strategy in different
10,00 holding periods (1 to 6 years, monthly rolling).
Based on the length of the holding period, the
0,00 0 analysis measures in how many cases the
strategy delivered an outperformance versus its
1 2 3 4 5 6 benchmark. As sentiments fluctuate stronger
Holding-Periods than fundamentals, one must expect that for
shorter holding periods, the probability to
achieve an outperformance is lower than over
% outperformance % underperformance Number of periods entire business cycles.
Source: INGIM, ING (L) Invest Euro High Dividend Gross versus MSCI EMU based on end of month returns April 99-March 10
ING Investment Management 24
25. No market timing but a strategy for the long-run
Outperformance increases with holding periods
Out-performance
100,00 90
100,00
93,94
90,00 80
80,00
70
80,00
70,00
71,93
60
68,12
Number of Periods
60,00
50
56,79
in %
50,00
40
40,00
% outperformance
30
30,00 % underperformance
20 Number of periods
20,00
10,00 10 Source: INGIM, ING (L) Invest Global High Dividend Gross
versus MSCI World
0,00 0 Based on end of month returns till January 2010
1 2 3 4 5 6
Holding-Periods
% outperformance % underperformance Number of periods
26. Downside protection & upside participation
Scatter Plot - 5 years holding periods (ann.)
ING Euro Dividend Fund
25
Risk profile analysis based
on 5y holding periods
20
15
10
Fund
5
0
-5 y = 0,0222x 2 + 0,4227x + 4,8995
R2 = 0,8611
-10
-10 -5 0 5 10 15 20 25
Index
BLI036_CAP ING (L) Invest Euro High Dividend CAP 106400_N MSCI (DM) EMU (Net) Polynomial 2nd order (Fund)
Source: INGIM, ING (L) Invest Euro High Dividend Gross versus MSCI EMU based on end of month returns April 99-March 10
ING Investment Management 26
28. Characteristics
Equities only; Long only
Concentrated portfolios
Every holding almost equal weighted
Quarterly rebalancing
Average dividend yield: Minimum market level +100bp
Sell discipline based on dividend yield
Maximum Stock weight : 5% (3% at rebalancing)
Maximum Sector overweight : 10%
Maximum Region/Country overweight : 10 -15%
Maximum Cash level: 10%
ING Investment Management 28
29. ING Euro Dividend : a lower risk profile
5%
4%
4,08%
3,75%
3%
2% 46 out of 58
outperformance
1%
0%
(1% )
33 out of 73
(2% ) outperformance
(3% )
(3,67%)
(4% )
(4,80%)
(5% )
(6% )
Up (73 months) Down (58 months)
Euro High Dividend MSCI EMU Net Return
Monthly return analysis end of March 2010, Gross data versus MSCI EMU net return since inception (April 1999)
ING Investment Management 29
30. …also within the High Dividend space
5%
4%
3,79%
3% 3,54%
2%
34 out of 54
outperformance
1%
0%
(1% )
39 out of 77
(2% ) outperformance
(3% )
(3,91%)
(4% )
(4,81%)
(5% )
(6% )
Up (77 months) Down (54 months)
Euro High Dividend MSCI EMU High Dividend Net return
Monthly return analysis end of March 2010, Gross data versus MSCI EMU High Dividend net return since inception (April 1999)
ING Investment Management 30
31. A lower risk profile…
March 31st, 2010 ING (L) Euro High Dividend MSCI EMU Net Return
Annualized Volatility 20.89 % 23.24 %
Average Annualized Return -6.81 % -9.64%
Annualized Tracking Error 5.03 %
Annualized Alpha 1.66%
Beta 0.88
3 Years Gross Monthly Data
ING Investment Management 31
32. …also within the High Dividend space
March 31st, 2010 ING (L) Euro High Dividend MSCI EMU High Dividend Net Return
Annualized Volatility 20.89 % 25.53 %
Average Annualized Return -6.81% -12.13 %
Annualized Tracking Error 7.12 %
Annualized Alpha 2.84%
Beta 0.80
3 Years Gross Monthly Data
ING Investment Management 32
33. A lower risk profile…
March 31st, 2010 ING (L) US High Dividend S&P 500 Net Return
Annualized Volatility 19.0 % 20.37 %
Average Annualized Return -3.05 % -4.81%
Annualized Tracking Error 5.01 %
Annualized Information Ratio 0.35
Annualized Alpha 1.29%
Beta 0.90
3 Years Gross Monthly Data
ING Investment Management 33
34. …also within the High Dividend space
March 31st, 2010 ING (L) US High Dividend MSCI US High Dividend net return
Annualized Volatility 19.0 % 20.30 %
Average Annualized Return -3.05% -6.38 %
Annualized Tracking Error 8.67 %
Annualized Alpha 2.56%
Beta 0.85
3 Years Gross Monthly Data
ING Investment Management 34
35. Risk analysis - End of March 2010
QPRISM Portfolio R Report
isk
Model : UBS Portfolio Analysis System (PAS)
Benchmark date : 31-03-2010
Portfolio date : 31-03-2010
Produced by : Quantitative Investment Strategies
Risk Factor Breakdown
Absolute % of Total Region
Active Regional/Country Risk
Active Regional/Country Risk
Asia-Pacific (ex Japan)
Active Benchmark Risk
Active Benchmark Risk
Ex-Ante Tracking Error
Active Specific Risk
Active Specific Risk
Active Sector Risk
Active Sector Risk
Target Ex-Ante TE
North America
Latin America
Active Style Risk
Active Style Risk
Active Share
Japan
Europe
Beta
Portfolio Benchmark
ING (L) Invest Euro High Dividend MSCI EMU - 3,39 0,93 55,89 1,45 1,63 0,68 0,89 2,34 18,35 23,17 4,00 6,90 47,58 3,47
ING (L) Invest Europe High Dividend MSCI Europe - 3,46 0,90 60,10 1,76 2,06 0,79 0,82 1,83 25,75 35,50 5,17 5,62 27,96 3,46
ING (L) Invest Global High Dividend MSCI World - 4,31 0,85 79,32 2,27 2,83 1,22 1,02 1,68 27,87 43,22 8,00 5,62 15,29 0,64 0,42 -0,02 3,24 0,02
ING (L) Invest US High Dividend US S&P 500 - 5,43 0,79 77,25 3,55 3,04 0,70 1,22 2,39 42,64 31,31 1,64 5,04 19,37 5,74
Source: UBS PAS
Lower beta and high active share*
* Active share is a measure of the percentage of stock holdings in portfolio that differ from the benchmark
36. Style analysis - End of March 2010
Portfolio/Index Style Analysis Value Growth & Profitability Size
Date: 03/31/10
5 Years Hist. Growth (4)
2 years EPS Growth (3)
1 year EPS Growth (2)
Dividend Yield FY1 (1)
% MSCI Growth (7)
% MSCI Value (7)
% Large Cap (6)
% Small Cap (6)
% Mid Cap (6)
Dividend Yield
Price to Book
PE FY2 (1)
PE FY1 (1)
ROE (5)
PE FY0
ING Portfolio
ING (L) INVEST Euro High Dividend 12,5 11,8 10,3 1,5 5,1% 4,6% 0,63 6,5% 10,3% 0,1% 0,24 10,8% 0,80 0,15 0,06
MSCI EMU 13,0 11,4 9,8 1,5 4,1% 4,4% 0,57 14,3% 15,4% 0,0% 0,33 9,5% 0,82 0,15 0,03
MSCI EMU High Dividend Yield 10,8 9,9 8,9 1,7 5,5% 6,1% 0,80 9,1% 9,9% 3,3% 0,15 15,7% 0,91 0,08 0,02
ING (L) INVEST Europe High Dividend 12,1 10,9 9,8 1,7 4,5% 4,7% 0,54 11,0% 11,1% 3,5% 0,29 12,2% 0,74 0,14 0,12
MSCI Europe 14,9 11,8 10,1 1,7 3,9% 4,1% 0,44 27,0% 21,9% 1,9% 0,46 10,1% 0,83 0,14 0,03
MSCI Europe High Dividend Yield 12,6 10,5 9,1 1,6 5,0% 5,4% 0,77 20,1% 17,5% 0,3% 0,16 9,8% 0,92 0,06 0,02
ING (L) INVEST Global High Dividend 15,8 12,6 11,1 1,8 4,3% 4,3% 0,66 25,9% 19,2% 1,1% 0,17 10,0% 0,80 0,14 0,06
MSCI World 18,2 13,5 11,3 2,1 2,9% 3,0% 0,44 34,5% 26,8% 2,8% 0,44 10,4% 0,79 0,17 0,04
MSCI World High Dividend Yield 13,3 11,4 10,1 1,8 4,3% 4,5% 0,72 16,0% 14,6% 2,9% 0,20 12,1% 0,89 0,09 0,02
ING (L) INVEST US High Dividend 14,0 13,2 11,3 2,3 3,4% 3,5% 0,42 6,0% 11,1% 4,1% 0,23 14,2%Source: 0,23 PAS
0,56 UBS 0,20
S&P 500 18,7 14,9 12,4 2,2 2,3% 2,4% 0,00 25,7% 22,7% 3,9% 0,00 10,6% 0,00 0,00 0,00
• Attractive dividend yield, bias to value and quality (ROE)
• Solid historic growth while not overpaying for future growth
38. ING (L) Invest Euro High Dividend (in %)
Since
Q1 YTD 3 years 5 years
1 year inception
2010 2010 (ann.) (ann.)
(Apr99) (ann.)
ING (L) Invest Euro High Dividend 1.23 1.23 48.66 -6.81 3.39 4.81
MSCI EMU (net return) 0.92 0.92 48.78 -9.64 2.24 0.56
Relative performance 0.31 0.31 -0.13 2.83 1.15 4.24
Gross performance ING (L) Invest Euro High Dividend in EUR, Benchmark: MSCI EMU Net return Index, as at 31 March 2010.
Strategy did participate to recovery trade and performed in line over 1Y despite lower beta
Value creation happened in Q4 2009 & Q1 2010 (end of low quality outperformance)
Multiple expansion was the name of the game in 2009
Earnings growth will have to take the lead from now on
A return of fundamentals in a more mature market in 2010
ING Investment Management 38
39. Performance attribution ING (L) Euro High Dividend
Q1 2010
ING (L) Invest Euro High Dividend MSCI EMU Attribution Analysis
Port. Bench.
Ending Total Contribution Ending Total Contribution Allocation Selection + Total
High Div Custom Sectors Weight Return To Return Weight Return To Return Effect Interaction Effect
Consumer Discretionary 7,64 5,59 0,44 9,41 3,68 0,32 -0,04 0,17 0,13
Consumer Staples 8,14 3,20 0,30 8,90 4,51 0,43 -0,00 -0,16 -0,16
Energy 10,44 -2,81 -0,22 7,80 -1,11 -0,11 -0,06 -0,19 -0,25
Financials 21,15 -2,94 -0,74 24,37 -2,74 -0,75 0,14 -0,05 0,10
Health Care 6,01 -5,24 -0,28 5,99 -0,30 -0,00 -0,00 -0,28 -0,28
Industrials 10,02 7,65 0,98 11,51 6,80 0,75 0,07 0,14 0,20
Information Technology 4,44 20,77 0,71 4,83 16,71 0,71 -0,10 0,12 0,01
Materials 6,52 2,95 0,40 8,36 2,24 0,20 -0,00 -0,00 -0,00
Real Estate 4,17 1,63 0,08 1,08 2,33 0,02 0,02 -0,02 0,00
Telecommunication Service 6,86 -0,98 -0,08 7,92 -4,28 -0,34 0,20 0,24 0,43
Utilities 11,89 -2,36 -0,40 9,83 -2,87 -0,33 -0,07 0,05 -0,02
[Cash] 2,72 0,17 0,01 -- -- -- 0,10 -- 0,10
Total 100,00 1,20 1,20 100,00 0,92 0,92 0,25 0,02 0,28
Holdings Data As Of
ING (L) Invest Euro High Dividend 12/31/2009 through 3/30/2010
MSCI EMU 1/01/2010 through 3/31/2010
• Positive stock selection in Telecommunications (Telecom Italia )& Industrials (Prysmian)
• Negative contribution from Health Care (Bayer) & Energy (Saras & Repsol)
ING Investment Management 39
40. ING (L) Invest Europe High Dividend
Performance at the end of Q1 2010
Since Incep.
Q1 3 Years 5 Years
1 Year (Dec. 04)
2010 (ann.) (ann.)
(ann.)
ING (L) Invest Europe High
+4.0% +49.7% -8.4% +2.8% +3.5%
Dividend
MSCI Europe (net return) +4.1% +53.2% -8.3% +2.6% +3.5%
Relative performance -0.1% -3.5% -0.1% +0.2% +0%
Gross performance ING (L) Invest Europe High Dividend in EUR, Benchmark: MSCI Europe Net Return Index, 31 Mar. 2010.
Strong absolute performance and reasonable relative over the last 12 months
With limited underperformance thanks to cyclical exposure (dividend style did not work)
Q1 2010 : strong relative performance in January gradually evaporated in the strong equity market rise in
February and March driven by high risk outperformance.
Q1 2010 : Outperformance year to date versus dividend style indices
The outperformance of low quality stocks is most probably over => positive outlook for quality stocks
