On August 30, 2013, a shareholder of the ING Global Real Estate Fund filed a complaint against ING Investments in the U.S. District Court for Delaware.
The complaint alleges that ING subcontracts out most of the investment management services for this Fund to a sub-adviser, yet still charges investment management fees that greatly exceed the fees it is paying to the sub-adviser. As an example, in fiscal year 2012, the plaintiff alleges that ING Investments collected $27.6 million in investment management fees for this Fund and then paid a sub-adviser just $12.1 million to provide investment management services to the Fund.
The plaintiff believes that the investment management fees being charged to this Fund are so excessive that they represent a breach of ING Investments' fiduciary duty to the Fund under Section 36(b) of the Investment Company Act.
ING filed a motion with the Court to transfer this case to the U.S. District Court for the District of Arizona. The plaintiff opposed this venue change and the ING motion to transfer was denied by the Court on June 6, 2014. This case is now in its discovery phase.