NU Online News Service, Nov. 5, 2:43 p.m. – ING Pilgrim Investments LLC, Scottsdale, Ariz., announced today the launch of the Pilgrim Principal Protection Fund II, a mutual fund with a period of guarantee of principal.
MBIA Insurance Corp., Armonk, N.Y., an insurer with an AAA rating, backs the guarantee of principal, less sales charges and certain fund expenses, ING says.
The offering phase of the fund begins today and runs through Jan. 31, 2002, ING says. The fund’s five-year guarantee period is open to investors only during this three-month offering phase.
The guarantee period follows the offering phase and runs from Feb. 1, 2002, through Jan. 31, 2007.
At the end of the guarantee period, investors may choose to keep their balances invested in the fund, exchange assets into the same share classes of other Pilgrim Funds, or receive their fund account balances in cash, ING says.
An exchange or redemption can trigger a taxable event or be subject to a contingent deferred sales charge schedule, ING says.