ING Group announced today that it is combining its two families of Canadian mutual funds into one single family of 20 funds to be branded as ING Funds.

Currently, ING Direct Funds Ltd. offers a family of three funds directly to the public, while ING Investment Management, Inc. offers a family of 18 funds through financial advisors and discount brokers. The rebranded funds will be available through all methods of distribution.

ING Investment Management, who will also become the portfolio advisor, will assume management of the current ING Direct Funds family.

The ING DIRECT Canadian Fund will be renamed the ING Canadian Balanced Fund, the ING DIRECT Global Brand Names Fund will be renamed ING Global Brand Names Fund.

The ING Direct American Fund will be merged into the ING U.S. Equity Fund to avoid the duplication of funds with similar investment objectives. The merger will entail the acquisition of the assets of the ING Direct American Fund at fair market value in exchange for units of the ING U.S. Equity Fund, which will be distributed to the unitholders of the ING Direct American Fund. The management fee respecting the merged ING U.S. Equity Fund will be 2.25% per annum.

General Trust of Canada will act as the trustee of the ING Funds, Royal Trust Company will assume custody of the assets and Ernst and Young LLP will become the auditors. The current declarations of trust will also be amended as required.

The companies will seek the required unitholder approvals for this new initiative at meetings to be held in October.