ING Asian Debt Hard Currency Strategy Month ending May 31, 2012

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1 STRATEGY BRIEF GLOBAL ING Investment Management at a Glance ING Investment Management (ING IM) manages approximately EUR 32.7 bln* (USD 46.4 bln*) of assets for institutions and individual investors worldwide. Employing more than 2,800 people, ING IM is active in 25 countries across the Americas, Asia-Pacific, Europe and the Middle East. ING IM is a business line of ING insurance, owned by ING Group, a global financial services company. Data as at 3 December 20. Mission ING IM s mission is to find unrecognised value ahead of consensus by seeking original insights on markets and companies. Toward that end, we apply our proprietary research and analytics, benchmark awareness and risk management to serve client needs within the guidelines and objectives of each assignment. Portfolio Managers Joep Huntjens Senior Investment Manager Years of experience: 6 Years with ING: 6 Investment Team Supported by 3 PMs & 4 Analysts Average years of experience: And supported by: ING IM Europe OECD & EMD Fixed Income Team & ING IM US Fixed Income team STRATEGY Summary This is an actively managed strategy that invests in debt securities issued by Asian sovereign as well as corporate issuers, both investment grade and non-investment grade (high yield). The main focus of the strategy is on debt issued in hard currency. Off-benchmark investments in local currency debt are permitted (up to /3rd of the portfolio), of which the resulting currency exposures are actively managed. The strategy is well-diversified and exploits opportunities across Asia excluding Japan. We aim to add value in various ways. The emphasis is on individual issuer selection, but we also focus on curve positioning, country positioning, sector selection, and currency management. Objective Our objective is to outperform the JPMorgan Asia Credit Composite Index over a 3 year period, with a target information ratio of 0.5. Investment Process The investment process is characterised by its systematic, disciplined framework for analysing sovereign and corporate hard and local currency debt securities. The key strengths of the process may be summarised as follows: Fundamental research Our investment process is designed to exploit and identify under and overvalued securities based on rigorous fundamental research Local presence ING IM s local presence in eight Asian countries provides important information advantages Global reach The strong link with investment teams in Europe and the US provides a global perspective on developments affecting Asia, and allows us to determine relative value within a global context Accountable decision making process A clearly defined decision-making structure, performance attribution and risk metrics, ensure full accountability. Contribution to process and returns Duration and Curve Based on a proven, value-identifying process, market inefficiencies are exploited. Countries and sectors are reviewed from a global perspective. Currencies Instead of short term currency trading, the team has a proven skill in identifying fundamental emerging market currency mis-pricing, benefiting from the ING Global Emerging Market Debt team s expertise and research. Spread* Implied rating based on thorough, multi-dimensional research is confronted with market valuations, to identify relative value. * Includes sector allocation and issuer selection

2 COMMENTARY Market Review Risk aversion was in full force in May putting pressure on risk assets such as equities, while bonds generally fared well. In particular, worries about the future of the European Union weighed heavily on investor sentiment while weaker economic data from both the United States and China added to concerns. Against that backdrop, prices of Asian USD bonds were impressively stable given the external environment and the degree to which credit spreads widened. Of course, much of the spread widening was driven by the sharp decline in US Treasury yields. In May, Asian credit spreads widened 39bps on average resulting in average total returns of approximately -0.5%. A strong appetite for US Treasuries helped propel the US dollar stronger against all major currencies except for the Japanese yen. The currencies of Asia ex-japan were not spared, weakening by as much as 6% (Indian rupee). Even the Chinese yuan a currency widely regarded as undervalued and expected to appreciate gradually against the greenback declined.4% against the USD. With everything that was going on, USD Asian bond issuance slowed sharply in May, with only one deal in the second-half of the month. For instance, April saw US$4 billion across 23 new bonds come to market compared with US$6.5 billion across 0 bonds in the current month. The brave latecomer was Hong Kong Land, which came to the market in the last week of the month issuing a US$500m 0-year priced at T+290bps. The deal did well in the secondary market helped by an attractive new-issue concession and the fact that HKLand does not issue often. That brings YTD Asian USD bond supply to US$56.7 billion nearly matching 20 s total of US$57.4 billion. Strategy Performance Gross relative performance for May: -53bps While lower US Treasury yields contributed positively to total returns, our shorter-than-market duration position resulted in the fund not generating the same magnitude of price gains as the market benchmark. An overweight to Indonesian sovereign bonds and exposure to Asian currencies both detracted from relative returns. Both positions were reduced in the period helping lessen the impact. Current Strategy and Outlook There remain many uncertainties stemming from Europe making the markets jittery. As such, investor sentiment, rather than fundamentals, will dominate market activity for the time being. The summer is typically a period when liquidity lessens, so market movements can become even more erratic. We anticipate a bumpy ride in the near term, so we reduced risk. Broadly speaking, Asian fundamentals have held up favourably in the face of slowing developed-market growth. However, Asia will not be immune to global slowdown as some recent advanced economic indicators have shown. Nonetheless, we expect that Asia will continue to outperform other regions particularly since it comes from a position of relative strength. Regardless of what should be, what will be is to be determined by events taking shape in other parts of the world for the time being. As a result, we believe that Asian currencies will continue to face headwinds for as long as the external environment is challenged. Accordingly, we reduced our exposure substantially and will look to re-enter at more attractive levels. We also reduced the average sensitivity of the fund to changes in credit spreads given our expectations for heightened volatility. In the month we made modest changes to country and industry allocations. Most notably, we increased the overall allocation to banks with a preference to Malaysian banks based on issuerspecific fundamentals and valuations. Finally, we reduced our overweight to Indonesia by selling our position in a quasi-sovereign issue, which in turn increased our overall underweight to quasisovereign bonds. Like everything else, spreads on USD Asian credits are likely to be driven by global risk appetite, led by events unfolding in Europe. Against the backdrop of massive uncertainty in developed markets, few new issues will come to market and US Treasury rates should remain low. JPMorgan Asian Credit Index - spread (bp) U.S. 0-year Treasury yields (%) Jan 07 Jan 08 Jan 09 Jan 0 Jan Jan 2 Jan 07 Jan 08 Jan 09 Jan 0 Jan Jan 2 Source: Bloomberg. Data as of Jun 0, 202 2

3 PORTFOLIO HIGHLIGHTS Strategy Characteristics Portfolio Benchmark Average Rating # Baa3 / BBB- Ba / BB+ Effective Yield (%) Weighted Duration (years) Average Maturity Return Characteristics (5 Year Risk Return) Portfolio Benchmark Standard Deviation (%) Tracking Error (%) 3.0 Information Ratio 0.46 Alpha (annualised %) 0.56 Beta.2 R-Squared 0.94 Sharpe Ratio 0.65 Currency Exposure FX (MV%) Portfolio Benchmark USD CNY 3.4 Total Top Ten Holdings % HUWHY /09/9 REGS 3.49 INDON /04/9 REGS 2.86 PHILIP /02/ INDON /7/8 REGS 2.24 INDON /2/35 REGS 2.04 KDB /04/7.80 KORELE /4/6 REGS.80 CHIFIN /29/49 REGS.78 EIBKOR /4/5.60 VEDLN /3/6 9 Quality Comparison to Benchmarks (%) Moody s ratings AAA AA A BBB BB B CCC CC Portfolio (MV%) Benchmark (MV%) D NR Future Top Ten Country Allocation (%) Sector Allocation (%) Korea Industrial Indonesia Financial Services Hong Kong Sovereign China Quasi-Sovereign Philippines Oil Malaysia Utility 6.89 India Media & Telecom 2.9 Singapore Portfolio (%) 0.74 Taiw an.78 Products and Retail 0.39 Benchmark (%) 0.88 Sri Lanka 2 Currency/Cash Investment Grade: 70.5% Yield: 28% Not Rated: % Portfolio (%) Benchmark (%) # The average rating of the Strategy is determined by calculating the portfolio s weighted average security rating factors. Security rating factors are based on the security s Moody s rating or, if not available, the security s S&P rating. All data sources provided by ING IM Asia Pacific and Europe Performance Team. Data are expressed as of May 3,

4 Star Ratings & Recent Awards ING (L) Renta Fund Asian Debt (Hard Currency) Overall Morningstar Rating 3 year Morningstar Rating 2 Best Bond Asia Pacific Fund over 3 & 5 years 3 Best Bond Asia Pacific Fund over 3 & 0 years 4 Best-in-Class Fund for the Asia Bond category 5 Winner of AsianInvestor 202 Investment Performance Awards - Asia Fixed Income Category 202 Morningstar, Inc. All right reserved Morningstar Rating TM as of May 3, Lipper Fund Awards 202 Hong Kong reflect fund s performance as of December 3, Lipper Fund Awards 202 Singapore reflect fund s performance as of December 3, Benchmark 00 Funds of the Year 20 is based on the performance as of December 3, AsianInvestor 202 Investment Performance Awards is based on the performance as of December 3, 20 4

5 ING Asian Debt Hard Currency Strategy Key Risks Month ending May 3, 202 An investment in any product or the Fund mentioned in this document may entail different risks of varying degrees. This includes but not limited to markets, credit, liquidity, product specific, legal, cross-border, foreign exchange and other risks. Please speak to your financial or legal adviser to understand the risks involved and whether it is appropriate for you to assume such risks before investing in any product or the Fund. Disclaimer The ING (L) Renta Fund Asian Debt is a sub-fund under ING (L), a variable capital investment company established in Luxembourg, and is recognized under Section 287 of the Securities and Futures Act, Chapter 289 of Singapore Act ( Act ). ING (L) is the responsible person as defined under the Act and has appointed ING Investment Management Asia Pacific (Singapore) Ltd as its corporate representative in connection with the offer of Shares in the Fund. This document is prepared for general information only and does not have any regard to the specific investment objective, financial situation and the particular needs of any specific person who may receive this document. An investment in any Fund mentioned in the document is not intended to be a complete investment programme for any investor and prospective investors should carefully consider whether an investment in such Fund is suitable for them in light of their own circumstances, financial resources and entire investment programme. Prospective investors should seek advice from a financial adviser before making a commitment to invest in the Fund. Any opinion, view or estimate presented is subject to change without notice and is made on a general basis and is not to be relied on by investors as constituting investment advice. Any past performance, projection or forecast made is not necessarily indicative of future performance. The value of Shares in the Fund and the income from them, if any, may fall as well as rise. No representation or promise as to the performance of the Fund or the return of your investment is made. Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. The information contained in this document has been obtained from sources that ING Investment Management Asia Pacific (Singapore) Limited believes to be reliable and accurate, but no representation or warranty, expressed or implied, is made as to the fairness, accuracy, timeliness or completeness of the information. Neither ING Investment Management Asia Pacific (Singapore) Limited, ING Bank N.V. nor the Fund, nor their affiliates, directors or employees (collectively, ING ) accepts any liability whatsoever for any loss arising directly or indirectly from any use of the information in this document. This document and information presented do not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such distribution or offer is not authorised to be made to any person. An investment in the Fund mentioned in this document carries risk, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by ING or distributors of the Fund. The Fund may not be suitable for persons who are averse to such risks. Investors should read the prospectus for details of the product features and risks of investing in the Fund. Copies of the prospectus can be obtained from ING Investment Management Asia Pacific (Singapore) Ltd and its authorized distributors. ING may have interests in the Fund and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Applications for Shares in the Fund must be made on the application form accompanying the Fund's prospectus. Issued by: ING Investment Management Asia Pacific (Singapore) Ltd Company Registration No: R 9 Raffles Place #23-08 Republic Plaza Singapore Tel: , Fax: , Website: 5