ING Direct Asset Management Ltd. announced Friday that it intends to convert the ING Direct Streetwise Funds (the corporate funds) into mutual fund trusts.The new trust funds will continue to be known as the Streetwise Funds.

ING Direct says the conversion is designed to improve tax and operational efficiency. All other operational aspects, investment objectives and investment strategies will remain the same and the trust funds will be subject to the same management fee and administration fee as the corporate funds.

The Streetwise Funds’ management expense ratio (MER) is 1%, significantly lower than most other Canadian balanced funds available today with average MERs of 2.6%, ING Direct says.

The conversion will be effected by transferring the assets of each corporate fund to the corresponding trust fund in exchange for units of that trust fund, as follows:

> ING Direct Streetwise Balanced Class to ING DirectStreetwise Balanced Fund;

> ING Direct Streetwise Balanced Income Class to ING Direct Streetwise Balanced Income Fund; and

> ING Direct Streetwise Balanced Growth Class to ING Direct Streetwise Balanced Growth Fund.

Upon completion of the conversion, shares of the corporate funds will cease to be offered to investors and the three new trust funds will be available.

The proposed conversion is subject to regulatory and shareholder approval. ING Direct will seek shareholder approval at a meeting to be held on Jan. 5, 2009. All shareholders of the corporate funds as of Dec. 1, 2008 will be entitled to attend and vote at the shareholder meeting.

ING Direct says investors who currently hold shares of the corporate funds in registered products such as RSPs and RIFs will not incur tax consequences, however the conversion will result in a taxable event to non-registered investors.

Launched in January 2008, the Streetwise Funds are three diversified balanced funds that use an index-based investment strategy to provide investors with exposure to four key asset classes.

IE