ING Group will merge two of its entities, Aeltus Investment Management and ING Furman Selz Asset Management, into a new institutional investment management firm to be called ING Aeltus Group.

Aeltus Investment Management became part of ING when it acquired Aetna Financial Services last year. 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. 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. The combination is designed 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 ING Furman Selz CEO Edmund Hajim, 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 CEO of the new unit. Scott Fox will remain president of Aeltus Investment Management and will serve on the operating committee of the new entity.

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