ING Group of New York announced yesterday that it will merge two of its entities, Aeltus Investment Management of Hartford, Conn. and ING Furman Selz Asset Management of New York, into a new institutional investment management firm called ING Aeltus Group.

Aeltus Investment Management became part of ING when it acquired Aetna Financial Services of Hartford, Conn. last year, according to the company. Aeltus manages more than $40 billion in pension fund, endowment and foundation assets. The unit also manages the Aetna family of mutual funds, which are offered primarily through ING Aetna Financial Services retirement plan products, according to ING. ING Furman Selz specializes in alternative investments and managed accounts, in which it manages about $30 billion.

ING Aeltus Group will target U.S. institutional and high-net-worth investors, according to ING. The reason for the combination is to create an institutional investment firm with a wider array of products and investment sectors.

“The combination of our two institutionally oriented investment businesses is a natural fit for ING in the United States,” said Edmund Hajim, chairman and CEO of ING Furman Selz, in a statement. “The complementary nature of the firms’ investment specialties plus their great common commitment to disciplined investment principles is a great advantage for us in meeting our clients’ investment needs.”

Hajim will be the chairman and CEO of the new unit, according to ING. J. Scott Fox will remain president of Aeltus Investment Management and will serve on the operating committee of the new entity.

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