Futures contracts are valued at the most recent settlement price. Upon entering into a futures contract, the Fund is required to deposit with a financial intermediary cash or securities (“initial margin”) in an amount equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments (“variation margin”) are made or received by the Fund dependent upon the daily fluctuations in the value and are recorded as unrealized gains or losses by the Fund. Gains or losses are realized when the contract expires or is closed. Since all futures contracts are exchange-traded, counterparty risk is minimized as the exchange’s clearinghouse acts as the counterparty, and guarantees the futures against default.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid market will limit the Fund’s ability to close out a futures contract prior to the settlement date and that a change in the value of a futures contract may not correlate exactly with the changes in the value of the underlying hedged security, index or currency.
Although the net assets and the market values are presented at the foreign exchange rates at the end of the day, the Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. For securities, which are subject to foreign withholding tax upon disposition, liabilities are recorded on the Statement of Assets and Liabilities for the estimated tax
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2013 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
withholding based on the securities current market value. Upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies and the U.S. government. These risks include, but are not limited to, revaluation of currencies and future adverse political and economic developments which could cause securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities.
I. Indemnifications. In the normal course of business, the Trust may enter into contracts that provide certain indemnifications. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, management believes based on experience, the risk of loss from such claims is considered remote.
NOTE 3 — INVESTMENTS
For the year ended March 31, 2013, the cost of purchases and the proceeds from principal repayment and sales of investments, excluding short-term investments, totaled $312,440,989 and $255,039,049, respectively. At March 31, 2013, the Fund held loans valued at $316,675,598 representing 87.0% of its total investments. The fair value of these assets is established as set forth in Note 2.
The loans acquired by the Fund typically take the form of a direct lending relationship with the borrower acquired through an assignment of another lender’s interest in a loan. The lead lender in a typical corporate loan syndicate administers the loan and monitors collateral. In the event that the lead lender becomes insolvent, enters FDIC receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in realizing payment, or may suffer a loss of principal and/or interest.
NOTE 4 — INVESTMENT MANAGEMENT AND ADMINISTRATION FEES
The Fund has entered into an investment management agreement (“Management Agreement”) with ING Investments, LLC (“ING Investments” or the “Investment Adviser”) to provide advisory and management services. The Management Agreement compensates the Investment Adviser with a fee, computed daily and payable monthly, at an annual rate of 0.55% of the Fund’s average daily net assets. The Fund is sub-advised by ING Investment Management Co. LLC (“ING IM”). Under the sub-advisory agreement, ING IM is responsible for managing the assets of the Fund in accordance with its investment objective and policies, subject to oversight by the Investment Adviser.
The Fund has also entered into an Administration Agreement with ING Funds Services, LLC (the “Administrator”), an indirect, wholly-owned subsidiary of ING Groep, to provide administrative services. The Administrator is compensated with a fee, computed daily and payable monthly, at an annual rate of 0.10% of the Fund’s average daily net assets.
NOTE 5 — DISTRIBUTION AND SERVICE FEES
Each share class of the Fund, except Class I and Class W, has adopted a plan (each a “Plan” and collectively, the “Plans”), whereby ING Investments Distributor, LLC (the “Distributor”) is compensated by the Fund for expenses incurred in the distribution of the Fund’s shares (“Distribution Fees”). Pursuant to the Plans, the Distributor is entitled to a payment each month for actual expenses incurred in the distribution and promotion of the Fund’s shares, including expenses incurred in printing prospectuses and reports used for sales purposes, expenses incurred in preparing and printing sales literature and other such distribution related expenses, including any distribution or Shareholder Servicing Fees (“Service Fees”) paid to securities dealers who executed a distribution agreement with the Distributor. Under the Plans, each class of shares of the Fund pays the Distributor a combined Distribution and/or Service Fee based on average daily net assets at the following annual rates:
The Distributor may also retain the proceeds of the initial sales charge paid by shareholders upon the purchase of Class A shares of the Funds, and the contingent deferred sales charge paid by shareholders
16
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2013 (CONTINUED)
NOTE 5 — DISTRIBUTION AND SERVICE FEES (continued)
upon certain redemptions for Class A and Class C shares. For the year ended March 31, 2013, the Distributor retained the following amounts in sales charges:
| | | | Class A
| | Class C
|
|---|
| | | | $ | 25,907 | | | | — | |
Contingent Deferred Sales Charge | | | | | — | | | $ | 579 | |
NOTE 6 — EXPENSE LIMITATIONS
Pursuant to a written expense limitation agreement (“Expense Limitation Agreement”) with the Fund, the Investment Adviser has agreed to limit expenses, excluding interest, taxes, brokerage commissions, and extraordinary expenses (and acquired fund fees and expenses), to the levels listed below:
Maximum Operating Expense Limit
(as a percentage of average daily net assets)
Class A — 1.00%
Class C — 1.75%
Class I — 0.75%
Class R — 1.25%
Class W — 0.75%
The Investment Adviser may at a later date recoup from the Fund management fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, the Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees and any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations for the Fund.
The Expense Limitation Agreement is contractual and shall renew automatically for one-year terms unless ING Investments provides written notice of the termination of the Expense Limitation Agreement within 90 days of the end of the then current term.
As of March 31, 2013, the amount of waived and reimbursed fees that are subject to recoupment by the Investment Adviser, and the related expiration dates are as follows:
March 31,
| |
|---|
2014
| | | | 2015
| | 2016
| | Total
|
|---|
| | | | | | | | |
NOTE 7 — LINE OF CREDIT
The Fund has entered into an unsecured committed revolving line of credit agreement (the “Credit Agreement”) with State Street Bank and Trust Company (“SSB”) for an aggregate amount of $25,000,000. The proceeds may be used only to: (1) temporarily finance the purchase and sale of securities; or (2) finance the redemption of shares of an investor in the Fund. The Fund pays a commitment fee equal to 0.10% per annum on the daily unused portion of the committed line amount payable quarterly in arrears. Generally, borrowings under the Credit Agreement accrue interest at the federal funds rate plus a specified margin. Repayments generally must be made within 60 days after the date of a revolving credit advance.
During the year ended March 31, 2013, the Fund utilized the line of credit as follows:
Days
Utilized
| | | | Approximate
Average Daily
Balance For
Days Utilized
| | Approximate
Weighted
Average
Interest Rate
For Days
Utilized
|
|---|
| | | | | | |
NOTE 8 — TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At March 31, 2013, the following affiliated investment companies or indirect, wholly-owned subsidiaries of ING U.S., Inc. owned more than 5% of the Fund:
Affiliated Investment Company or Subsidiary
| | | | Percentage
|
|---|
| | | | | 9.35 | % |
ING Solution 2015 Portfolio | | | | | 6.51 | % |
ING Solution 2025 Portfolio | | | | | 11.23 | % |
ING Solution 2035 Portfolio | | | | | 9.78 | % |
Control is defined by the 1940 Act as the beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a company. The 1940 Act defines affiliates as companies that are under common control.
The Fund has adopted a Deferred Compensation Plan (the “Plan”), which allows eligible non-affiliated trustees as described in the Plan to defer the receipt of all or a portion of the trustees fees payable. Amounts deferred are treated as though invested in various “notional” funds advised by ING Investments until distribution in accordance with the Plan.
NOTE 9 — UNFUNDED COMMITMENTS
As of March 31, 2013, the Fund had unfunded loan commitments pursuant to the terms of the following loan agreements:
The unrealized appreciation on these commitments of $130 as of March 31, 2013 is reported as such on the Statement of Assets and Liabilities.
17
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2013 (CONTINUED)
NOTE 10 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
| | | | Shares
sold
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Net increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Net increase
(decrease)
|
|---|
Year or period ended
| | | | #
| | #
| | #
| | #
| | ($)
| | ($)
| | ($)
| | ($)
|
|---|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 2,722,982 | | | | 81,409 | | | | (327,508 | ) | | | 2,476,883 | | | | 27,791,758 | | | | 829,471 | | | | (3,333,210 | ) | | | 25,288,019 | |
| | | | | 1,272,962 | | | | 30,768 | | | | (2,080,550 | ) | | | (776,820 | ) | | | 12,866,971 | | | | 307,651 | | | | (20,777,385 | ) | | | (7,602,763 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 2,059,895 | | | | 36,736 | | | | (266,013 | ) | | | 1,830,618 | | | | 21,046,713 | | | | 374,437 | | | | (2,705,134 | ) | | | 18,716,016 | |
| | | | | 693,794 | | | | 13,157 | | | | (300,251 | ) | | | 406,700 | | | | 7,013,924 | | | | 131,384 | | | | (2,975,715 | ) | | | 4,169,593 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 5,248,615 | | | | 767,169 | | | | (7,075,274 | ) | | | (1,059,490 | ) | | | 53,494,091 | | | | 7,796,350 | | | | (71,396,295 | ) | | | (10,105,854 | ) |
| | | | | 5,491,577 | | | | 812,839 | | | | (5,722,597 | ) | | | 581,819 | | | | 54,719,863 | | | | 8,120,755 | | | | (57,523,526 | ) | | | 5,317,092 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 1,619,269 | | | | 114,941 | | | | (219,259 | ) | | | 1,514,951 | | | | 16,483,646 | | | | 1,168,975 | | | | (2,222,800 | ) | | | 15,429,821 | |
| | | | | 1,015,920 | | | | 65,050 | | | | (214,604 | ) | | | 866,366 | | | | 10,227,972 | | | | 648,425 | | | | (2,151,049 | ) | | | 8,725,348 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 3,813,346 | | | | 315,035 | | | | (868,891 | ) | | | 3,259,490 | | | | 38,926,215 | | | | 3,212,353 | | | | (8,849,265 | ) | | | 33,289,303 | |
| | | | | 6,227,811 | | | | 214,880 | | | | (1,591,193 | ) | | | 4,851,498 | | | | 63,484,407 | | | | 2,147,556 | | | | (15,862,328 | ) | | | 49,769,635 | |
NOTE 11 — FEDERAL INCOME TAXES
The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of short-term capital gains and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as return of capital.
Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders.
The tax composition of dividends and distributions to shareholders was as follows:
Year Ended March 31, 2013
| | Year Ended March 31, 2012
| |
|---|
Ordinary
Income
| | Long-term
Capital Gains
| | Ordinary
Income
| | Long-term
Capital Gains
|
|---|
| | | | | | |
The tax-basis components of distributable earnings as of March 31, 2013 were:
Undistributed
Ordinary
Income
| | | | Unrealized
Appreciation/
(Depreciation)
|
|---|
| | | | |
The Fund’s major tax jurisdictions are U.S. federal and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2010, the year of commencement of operations.
As of March 31, 2013, no provision for income tax is required in the Fund’s financial statements as a result of tax positions taken on federal and state income tax returns for open tax years. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue.
NOTE 12 — SUBSEQUENT EVENTS
Restructuring Plan
The Investment Adviser, ING IM, the Administrator, and the Distributor are indirect, wholly-owned subsidiaries of ING U.S., Inc. (“ING U.S.”). ING U.S. is a U.S.-based financial institution whose subsidiaries operate in the retirement, investment, and insurance industries. As of March 31, 2013, ING U.S. was a wholly-owned subsidiary of ING Groep N.V. (“ING Groep”), which is a global financial institution of Dutch origin, with operations in more than 40 countries.
In October 2009, ING Groep submitted a restructuring plan (the “Restructuring Plan”) to the European Commission in order to receive approval for state aid granted to ING Groep by the Kingdom of the Netherlands in November 2008 and March 2009. To receive approval for this state aid, ING Groep was required to divest its insurance and investment management businesses, including ING U.S., before the
18
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2013 (CONTINUED)
NOTE 12 — SUBSEQUENT EVENTS (continued)
end of 2013. In November 2012, the Restructuring Plan was amended to permit ING Groep additional time to complete the divestment. Pursuant to the amended Restructuring Plan, ING Groep must divest at least 25% of ING U.S. by the end of 2013, more than 50% by the end of 2014, and the remaining interest by the end of 2016 (such divestment, the “Separation Plan”).
On November 9, 2012, ING U.S. filed a Registration Statement on Form S-1 (the “Form S-1”) with the U.S. Securities and Exchange Commission (“SEC”) to register an initial public offering of ING U.S. common stock (the “IPO”). On May 1, 2013, this Registration Statement including subsequent amendments became effective and the IPO was priced. The IPO closed on May 7, 2013. ING Groep continues to own a majority of the common stock of ING U.S. ING Groep intends to sell its remaining controlling interest in ING U.S. over time. While the base case for the Separation Plan is the divestment of ING Groep’s remaining interest in one or more broadly distributed offerings, all options remain open and it is possible that ING Groep’s divestment of its remaining interest in ING U.S. may take place by means of a sale to a single buyer or group of buyers.
It is anticipated that one or more of the transactions contemplated by the Separation Plan would result in the automatic termination of the existing advisory and sub-advisory agreements under which the Adviser and sub-adviser(s) provide services to the Fund. In order to ensure that the existing investment advisory and sub-advisory services can continue uninterrupted, the Board approved new advisory and sub-advisory agreements for the Fund in connection with the IPO. In addition, shareholders of the Fund have been asked to approve new investment advisory and sub-advisory agreements prompted by the IPO, as well as any future advisory and sub-advisory agreements prompted by the Separation Plan that are approved by the Board and whose terms are not materially different from the current agreements. Shareholders of the Fund approved new advisory and sub-advisory agreements on May 13, 2013. This means that shareholders may not have another opportunity to vote on a new agreement with the Adviser or an affiliated sub-adviser even if they undergo a change of control, as long as no single person or group of persons acting together gains “control” (as defined in the 1940 Act) of ING U.S.
The Separation Plan, whether implemented through public offerings or other means, may be disruptive to the businesses of ING U.S. and its subsidiaries, including the Adviser and affiliated entities that provide services to the Fund, and may cause, among other things, interruption of business operations or services, diversion of management’s attention from day-to-day operations, reduced access to capital, and loss of key employees or customers. The completion of the Separation Plan is expected to result in the Adviser’s and affiliated entities loss of access to the resources of ING Groep, which could adversely affect their business. Since a portion of the shares of ING U.S., as a stand-alone entity, are publicly held, it is subject to the reporting requirements of the Securities Exchange Act of 1934 as well as other U.S. government and state regulations, and subject to the risk of changing regulation.
The Separation Plan may be implemented in phases. During the time that ING Groep retains a majority interest in ING U.S., circumstances affecting ING Groep, including restrictions or requirements imposed on ING Groep by European and other authorities, may also affect ING U.S. A failure to complete the Separation Plan could create uncertainty about the nature of the relationship between ING U.S. and ING Groep, and could adversely affect ING U.S. and the Adviser and its affiliates. Currently, the Adviser and its affiliates do not anticipate that the Separation Plan will have a material adverse impact on their operations or the Fund and its operation.
Dividends
Subsequent to March 31, 2013, the Fund declared dividends from net investment income of:
| | | | Per Share
Amount
| | Payable
Date
| | Record
Date
|
|---|
| | | | | $0.0459 | | | | | |
| | | | | $0.0395 | | | | | |
| | | | | $0.0480 | | | | | |
| | | | | $0.0438 | | | | | |
| | | | | $0.0480 | | | | | |
Proposals
At a meeting of the Board on January 10, 2013, the Board nominated 13 individuals (collectively, the “Nominees”) for election as Trustees of the Trust. The Nominees include Colleen D. Baldwin, John V. Boyer, Patricia W. Chadwick, Peter S. Drotch, J. Michael Earley, Patrick W. Kenny, Sheryl K. Pressler, Roger B. Vincent and Shaun P. Mathews, each of whom is a current member of the Board. In addition, the Board has nominated Albert E. DePrince Jr., Russell H. Jones, Martin J. Gavin, and Joseph E. Obermeyer, each of whom is not currently a member of the Board, but who serves as a director or trustee to other investment companies in the ING Fund complex. The Nominees were approved by shareholders on May 13, 2013. The election of the Nominees is effective on May 21, 2013.
19
NOTES TO FINANCIAL STATEMENTS AS OF MARCH 31, 2013 (CONTINUED)
NOTE 12 — SUBSEQUENT EVENTS (continued)
These nominations are, in part, the result of an effort on the part of the Board, another board in the ING Fund complex, and the Investment Adviser to the Fund to consolidate the membership of the boards so that the same members serve on each board in the ING Fund complex. The result is that all ING Funds will be governed by a board made up of the same individuals.
The Fund has evaluated events occurring after the Statement of Assets and Liabilities date (subsequent events) to determine whether any subsequent events necessitated adjustment to or disclosure in the financial statements. Other than the above, no such subsequent events were identified.
20
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
| | |
Aerospace & Defense: 1.4% |
| 397,000 | | | | | | Data Device Corp. (DDC), 1st Lien Term Loan, 7.500%, 06/15/18 | | $ | 396,504 | | | | 0.1 | |
| 1,500,000 | | | | | | Delta Airlines, Inc., Term Loan B-1, 5.250%, 10/15/18 | | | 1,525,782 | | | | 0.4 | |
| 2,462,500 | | | | | | Delta Airlines, Inc., New Term Loan, 4.500%, 04/20/17 | | | 2,496,359 | | | | 0.7 | |
| 500,000 | | | | | | DigitalGlobe Inc., Term Loan, 3.750%, 01/31/20 | | | 506,446 | | | | 0.2 | |
| | | | | | | | | | 4,925,091 | | | | 1.4 | |
|
| 500,000 | | | | | | Avis Budget Car Rental, LLC, Term Loan B, 03/15/19 | | | 506,246 | | | | 0.1 | |
| 2,947,500 | | | | | | Chrysler Group LLC, Term Loan B, 6.000%, 05/24/17 | | | 3,009,344 | | | | 0.9 | |
| 1,246,875 | | | | | | FleetPride Corporation, First Lien Term Loan, 5.250%, 12/31/19 | | | 1,264,799 | | | | 0.3 | |
| 1,591,397 | | | | | | Fram Group Holdings Inc., First Lien Term Loan, 6.500%, 07/28/17 | | | 1,614,604 | | | | 0.5 | |
| 498,690 | | | | | | Fram Group Holdings Inc., Second Lien Term Loan, 10.500%, 01/29/18 | | | 508,664 | | | | 0.1 | |
| 1,001,239 | | | | | | KAR Auction Services, Inc., Term Loan B, 05/15/17 | | | 1,013,128 | | | | 0.3 | |
| 1,396,500 | | | | | | Metaldyne, LLC, Term Loan B, 5.000%, 12/15/18 | | | 1,420,939 | | | | 0.4 | |
| 296,575 | | | | | | Schrader International, Lux Term Loan, 6.250%, 04/30/18 | | | 302,507 | | | | 0.1 | |
| 228,139 | | | | | | Schrader International, US Term Loan, 6.250%, 04/30/18 | | | 232,702 | | | | 0.1 | |
| 248,750 | | | | | | Transtar Holding Company, 1st Lien Term Loan, 5.500%, 09/30/18 | | | 253,725 | | | | 0.1 | |
| 733,860 | | | | | | UCI International, Inc., Term Loan B, 5.500%, 07/26/17 | | | 740,740 | | | | 0.2 | |
| | | | | | | | | | 10,867,398 | | | | 3.1 | |
|
| 3,000,000 | | | | | | ARAMARK, Term Loan D, 4.000%, 08/15/19 | | | 3,036,150 | | | | 0.9 | |
| | | | | | | | | | | | | | | |
Brokers, Dealers & Investment Houses: 0.7% |
| 1,750,000 | | | | | | Nuveen Investments, Inc., First Lien Term Loan, 5.204%, 05/13/17 | | | 1,783,906 | | | | 0.5 | |
| 500,000 | | | | | | Nuveen Investments, Inc., 2nd Lien, 8.250%, 05/12/19 | | | 516,250 | | | | 0.2 | |
| | | | | | | | | | 2,300,156 | | | | 0.7 | |
Building & Development: 1.8% |
| 1,661,045 | | | | | | Capital Automotive L.P., Term Loan, 5.250%, 03/11/17 | | | 1,672,724 | | | | 0.5 | |
| 1,205,282 | | | | | | Custom Building Products, Inc., Term Loan B, 6.000%, 12/14/19 | | | 1,226,374 | | | | 0.4 | |
| 810,475 | | | | | | NCI Building Systems, Inc., Term Loan, 8.000%, 06/21/18 | | | 823,139 | | | | 0.2 | |
| 891,023 | | | | | | Roofing Supply Group, Term Loan B, 5.000%, 05/31/19 | | | 904,667 | | | | 0.3 | |
| 1,446,375 | | | | | | Wilsonart LLC, Term Loan B, 5.500%, 10/31/19 | | | 1,469,427 | | | | 0.4 | |
| | | | | | | | | | 6,096,331 | | | | 1.8 | |
Business Equipment & Services: 12.1% |
| 1,198,682 | | | | | | Acosta, Inc., Term Loan D, 5.000%, 03/02/18 | | | 1,215,164 | | | | 0.4 | |
| 428,571 | | | | | | Advantage Sales & Marketing, Inc., 2nd Lien Term Loan, 8.250%, 06/18/18 | | | 436,071 | | | | 0.1 | |
| 1,208,970 | | | | | | Advantage Sales & Marketing, Inc., Term Loan, 4.250%, 12/18/17 | | | 1,227,609 | | | | 0.4 | |
| 1,985,025 | | | | | | AlixPartners LLP, Term Loan B-2, 4.500%, 06/15/19 | | | 2,008,184 | | | | 0.6 | |
| 500,000 | | | | | | AlixPartners LLP, Second Lien Term Loan, 10.750%, 12/15/19 | | | 512,500 | | | | 0.2 | |
| 1,750,000 | | | | | | Avaya Inc., Term Loan B-5 Loan, 03/31/18 | | | 1,798,125 | | | | 0.5 | |
| 1,630,763 | | | | | | Avaya Inc., Term Loan B-3, 4.812%, 10/26/17 | | | 1,541,637 | | | | 0.4 | |
| 1,975,748 | | | | | | Catalent Pharma Solutions, Inc., Incremental USD Term Loan B-2, 5.250%, 09/15/17 | | | 1,997,152 | | | | 0.6 | |
| 623,438 | | | | | | Corporate Executive Board, Term Loan B, 5.000%, 08/02/19 | | | 629,672 | | | | 0.2 | |
| 2,232,003 | | | | | | CorpSource Finance Holdings, LLC, 1st Lien Term Loan, 6.628%, 04/28/17 | | | 2,237,583 | | | | 0.6 | |
| 613,882 | | | | | | CorpSource Finance Holdings, LLC, 2nd Lien Term Loan, 10.500%, 04/29/18 | | | 620,021 | | | | 0.2 | |
| 822,938 | | | | | | First American Payment Systems, 1st Lien Term Loan, 5.750%, 09/30/18 | | | 831,167 | | | | 0.2 | |
| 375,000 | | | | | | First American Payment Systems, 2nd Lien, 10.750%, 03/30/19 | | | 380,156 | | | | 0.1 | |
| 1,000,000 | | | | | | First Data Corporation, Extended 2017 US Term Loan, 03/23/17 | | | 1,008,672 | | | | 0.3 | |
| 1,500,000 | | | | | | First Data Corporation, Extended 2018 Dollar Term Loan, 4.211%, 03/23/18 | | | 1,497,937 | | | | 0.4 | |
| 498,750 | | | | | | Garda World Security Corp., Term Loan B, 4.500%, 10/31/19 | | | 505,764 | | | | 0.2 | |
| 414,042 | | | | | | GCA Services, Term Loan B, 5.250%, 10/31/19 | | | 416,113 | | | | 0.1 | |
| 522,375 | | | | | | Genpact International, Inc., Term Loan B, 4.250%, 08/31/19 | | | 530,646 | | | | 0.2 | |
| 3,225,392 | | | | | | Go Daddy Operating Company, LLC, Term Loan, 4.250%, 12/17/18 | | | 3,248,237 | | | | 0.9 | |
| 500,000 | | | | | | Interactive Data Corporation, Term Loan B, 3.750%, 02/11/18 | | | 506,407 | | | | 0.2 | |
| 450,000 | | | | | | Intertrust Group, Term Loan B, 02/04/20 | | | 451,687 | | | | 0.1 | |
| 1,480,000 | | | | | | Mercury Payment Systems LLC, Term Loan B Inc, 5.500%, 07/01/17 | | | 1,505,900 | | | | 0.4 | |
| 1,200,938 | | | | | | Property Data I, Inc., Term Loan B, 7.000%, 12/21/16 | | | 1,213,698 | | | | 0.4 | |
| 498,750 | | | | | | SGS International, Term Loan, 5.000%, 10/15/19 | | | 502,802 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
21
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
Business Equipment & Services: (continued) |
| 725,000 | | | | | | Sungard Data Systems Inc, Term Loan B, Tranche D, 4.500%, 12/15/19 | | $ | 734,964 | | | | 0.2 | |
| 1,375,000 | | | | | | Sungard Data Systems Inc, Term Loan B, Tranche E, 4.000%, 03/15/20 | | | 1,393,906 | | | | 0.4 | |
| 1,820,000 | | | | | | SurveyMonkey.com, LLC, Term Loan B, 5.500%, 02/05/19 | | | 1,851,850 | | | | 0.5 | |
| 311,111 | | | | | | Sutherland Global Services, Term Loan Cayman, 7.250%, 03/15/19 | | | 308,778 | | | | 0.1 | |
| 688,889 | | | | | | Sutherland Global Services, Term Loan US, 7.250%, 03/15/19 | | | 683,722 | | | | 0.2 | |
| 363,553 | | | | | | Trans Union LLC, Term Loan, 4.250%, 02/15/19 | | | 368,551 | | | | 0.1 | |
| 498,750 | | | | | | Transfirst Holdings, Inc., 1st Lien Term Loan B, 6.250%, 12/31/17 | | | 507,790 | | | | 0.2 | |
| 143,903 | | | | | | U.S. Security Associates Holdings, Inc., Delayed Draw Term Loan, 6.000%, 07/28/17 | | | 145,432 | | | | 0.0 | |
| 830,148 | | | | | | U.S. Security Associates Holdings, Inc., New Term Loan, 6.000%, 07/28/17 | | | 838,968 | | | | 0.2 | |
| 111,112 | | | | | | Verifone, Inc., Term Loan B, 4.250%, 12/31/18 | | | 111,622 | | | | 0.0 | |
| 333,333 | | | | | | Vestcom International, Inc., Term Loan, 7.005%, 12/26/18 | | | 337,083 | | | | 0.1 | |
| 400,000 | | | | | | Wash Multi-Family Services, Term Loan, 5.250%, 01/31/19 | | | 406,000 | | | | 0.1 | |
| 2,224,915 | | | | | | Web.com Group, Inc., 1st Lien Term Loan, 5.500%, 10/27/17 | | | 2,247,860 | | | | 0.7 | |
| 1,000,000 | | | | | | Weight Watchers International, Inc., Term Loan F, 4.000%, 03/27/19 | | | 1,006,688 | | | | 0.3 | |
| 3,465,083 | | | | | | West Corp, Term Loan B-8, 4.250%, 07/15/18 | | | 3,525,722 | | | | 1.0 | |
| 365,000 | | | | | | WIS International, First Lien, 5.753%, 12/01/18 | | | 368,422 | | | | 0.1 | |
| 250,000 | | | | | | WIS International, Second Lien, 10.250%, 06/01/19 | | | 256,250 | | | | 0.1 | |
| | | | | | | | | | 41,916,512 | | | | 12.1 | |
Cable & Satellite Television: 3.4% |
| 696,138 | | | | | | Atlantic Broadband, Term Loan B, 4.500%, 12/31/19 | | | 707,886 | | | | 0.2 | |
| 1,280,680 | | | | | | RCN Cable, Term Loan B, 6.250%, 02/25/20 | | | 1,294,287 | | | | 0.4 | |
| 874,425 | | | | | | San Juan Cable LLC, ’1st Lien, 6.000%, 06/09/17 | | | 891,913 | | | | 0.3 | |
| 5,000,000 | | | | | | Virgin Media Investment Holdings Limited, Term Loan B, 02/13/20 | | | 4,981,250 | | | | 1.4 | |
| 850,000 | | | | | | WaveDivision Holdings LLC, Term Loan B, 4.000%, 10/01/19 | | | 859,563 | | | | 0.3 | |
| 2,885,500 | | | | | | Wideopenwest Finance, LLC, Term Loan, 6.250%, 07/05/18 | | | 2,925,897 | | | | 0.8 | |
| | | | | | | | | | 11,660,796 | | | | 3.4 | |
Chemicals & Plastics: 4.8% |
| 990,000 | | | | | | Ascend Performance Materials Operations LLC, Term Loan, 6.750%, 04/09/18 | | | 1,012,275 | | | | 0.3 | |
| 740,176 | | | | | | AZ Chem US Inc., Term Loan B, 5.256%, 12/19/17 | | | 753,746 | | | | 0.2 | |
| 850,000 | | | | | | Chemtura Corporation, Term Loan, 5.500%, 08/27/16 | | | 862,750 | | | | 0.2 | |
| 2,425,000 | | | | | | DuPont Performance Coatings, Term Loan B, 4.750%, 02/01/20 | | | 2,459,998 | | | | 0.7 | |
| 325,000 | | | | | | Houghton International, Inc., 2nd Lien Term Loan, 9.500%, 12/20/20 | | | 331,094 | | | | 0.1 | |
| 249,375 | | | | | | Houghton International, Inc., US 1st Lien Term Loan, 5.250%, 12/20/19 | | | 253,479 | | | | 0.1 | |
| 2,972,481 | | | | | | Ineos US Finance LLC, Cash Dollar Term Loan, 6.500%, 04/27/18 | | | 3,023,572 | | | | 0.9 | |
| 550,909 | | | | | | KLEOPATRA LUX 2 S.À. R.L, New Term Loan B, 5.750%, 12/21/16 | | | 560,894 | | | | 0.2 | |
| 329,196 | | | | | | Monarch, First lien Term Loan B-1, 10/01/19 | | | 330,430 | | | | 0.1 | |
| 170,804 | | | | | | Monarch, First lien Term Loan B-2, 10/01/19 | | | 171,445 | | | | 0.0 | |
| 250,000 | | | | | | Monarch, Second lien Term Loan, 04/01/20 | | | 256,562 | | | | 0.1 | |
| 1,750,000 | | | | | | Tronox Pigments (Netherlands) BV, Term Loan, 03/20/20 | | | 1,775,937 | | | | 0.5 | |
| 3,743,082 | | | | | | Univar Inc., Term Loan B, 5.000%, 06/30/17 | | | 3,784,859 | | | | 1.1 | |
| 1,148,400 | | | | | | Vantage Specialties Inc., Term Loan B, 5.000%, 02/10/18 | | | 1,154,860 | | | | 0.3 | |
| | | | | | | | | | 16,731,901 | | | | 4.8 | |
|
| 223,572 | | | | | | Targus Group, Inc., New Senior Secured Term Loan, 11.002%, 05/16/16 | | | 224,689 | | | | 0.1 | |
| 44,027 | | | | | | Totes Isotoner Corporation, Delayed Draw 1st Ln Term Loan, 7.268%, 07/07/17 | | | 44,178 | | | | 0.0 | |
| 424,603 | | | | | | Totes Isotoner Corporation, First Ln Term Loan, 7.252%, 07/07/17 | | | 426,063 | | | | 0.1 | |
| | | | | | | | | | 694,930 | | | | 0.2 | |
|
| 1,947,465 | | | | | | Affinion Group, Inc., First Lien Term Loan, 6.500%, 10/10/16 | | | 1,907,299 | | | | 0.6 | |
| 423,000 | | | | | | Jason Incorporated, Term Loan, 5.000%, 03/01/19 | | | 425,115 | | | | 0.1 | |
| 1,995,000 | | | | | | ServiceMaster Company, Term Loan, 4.250%, 02/28/17 | | | 2,016,197 | | | | 0.6 | |
| 723,188 | | | | | | Spectrum Brands, Inc., Term Loan, 4.500%, 10/31/19 | | | 733,206 | | | | 0.2 | |
| 492,500 | | | | | | Waterpik, Term Loan, 6.753%, 08/10/17 | | | 493,116 | | | | 0.1 | |
| 398,000 | | | | | | WireCo WorldGroup, Inc., Term Loan B, 6.000%, 02/15/17 | | | 403,970 | | | | 0.1 | |
| | | | | | | | | | 5,978,903 | | | | 1.7 | |
See Accompanying Notes to Financial Statements
22
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
Containers & Glass Products: 3.0% |
| 2,500,000 | | | | | | Berry Plastics Corporation, Incremental Term Loan, 3.500%, 02/01/20 | | $ | 2,498,885 | | | | 0.7 | |
| 299,250 | | | | | | Bway Holding Corporation, Term Loan B, 4.500%, 08/06/17 | | | 303,178 | | | | 0.1 | |
| 2,161,169 | | | | | | Husky Injection Molding Systems, Ltd, New Term Loan B, 5.750%, 06/30/18 | | | 2,190,211 | | | | 0.6 | |
| 586,846 | | | | | | Pro Mach, Inc, Term Loan, 5.000%, 07/06/17 | | | 594,182 | | | | 0.2 | |
| 350,000 | | | | | | Pro Mach, Inc, Term Loan, 07/06/17 | | | 354,375 | | | | 0.1 | |
| 3,565,654 | | | | | | Reynolds Group Holdings Inc., USD Term Loan, 4.750%, 09/26/18 | | | 3,621,684 | | | | 1.0 | |
| 895,500 | | | | | | TricorBraun, Term Loan, 5.503%, 04/30/18 | | | 908,187 | | | | 0.3 | |
| | | | | | | | | | 10,470,702 | | | | 3.0 | |
|
| 962,500 | | | | | | Jazz Pharmaceuticals Inc., Term Loan, 5.250%, 05/30/18 | | | 974,933 | | | | 0.3 | |
| 337,121 | | | | | | Prestige Brands, Term B-1, 3.750%, 01/31/19 | | | 342,515 | | | | 0.1 | |
| | | | | | | | | | 1,317,448 | | | | 0.4 | |
Ecological Services & Equipment: 1.0% |
| 1,456,235 | | | | | | 4L Holdings Inc., Term Loan, 6.751%, 05/06/18 | | | 1,456,235 | | | | 0.4 | |
| 1,770,563 | | | | | | ADS Waste Holdings, Inc., Term Loan B, 4.250%, 10/01/19 | | | 1,792,473 | | | | 0.5 | |
| 297,000 | | | | | | WCA Waste Corporation, Term Loan B, 5.500%, 02/28/18 | | | 299,785 | | | | 0.1 | |
| | | | | | | | | | 3,548,493 | | | | 1.0 | |
Electronics/Electrical: 6.4% |
| 1,510,000 | | | | | | Attachmate Corporation, 1st Lien Term Loan, 7.272%, 11/15/17 | | | 1,527,931 | | | | 0.4 | |
| 2,470,103 | | | | | | Blackboard Inc., Term Loan B-2, 6.250%, 10/01/18 | | | 2,504,067 | | | | 0.7 | |
| 500,000 | | | | | | Blackboard Inc., 2nd Lien Term Loan B, 11.500%, 10/01/19 | | | 498,334 | | | | 0.1 | |
| 1,476,275 | | | | | | Epicor Software Corporation, Term Loan B, 5.000%, 05/16/18 | | | 1,496,574 | | | | 0.4 | |
| 500,000 | | | | | | Eze Castle Software, Inc., 1st Lien Term Loan, 03/18/20 | | | 506,875 | | | | 0.2 | |
| 2,785,000 | | | | | | Freescale Semiconductor, Inc., Tranche B-4 Term Loan, 5.000%, 03/01/20 | | | 2,806,759 | | | | 0.8 | |
| 685,000 | | | | | | Greeneden U.S. Holdings II, L.L.C., Term Loan, 4.000%, 02/08/20 | | | 690,138 | | | | 0.2 | |
| 467,578 | | | | | | Hyland Software, Inc., 1st Lien Term Loan, 5.500%, 10/24/19 | | | 471,669 | | | | 0.1 | |
| 538,994 | | | | | | Kronos Incorporated, First Lien Term Loan, 4.500%, 10/30/19 | | | 545,900 | | | | 0.2 | |
| 1,985,025 | | | | | | Lawson Software, Inc., Term Loan B, 5.250%, 04/05/18 | | | 2,021,831 | | | | 0.6 | |
| 425,000 | | | | | | Microsemi Corporation, Term Loan, 3.750%, 02/19/20 | | | 428,984 | | | | 0.1 | |
| 872,950 | | | | | | Open Link Financial, Inc., Term Loan, 7.750%, 10/28/17 | | | 876,951 | | | | 0.3 | |
| 2,687,749 | | | | | | RedPrairie Corporation, 1st Lien Term Loan, 6.750%, 12/14/18 | | | 2,744,863 | | | | 0.8 | |
| 500,000 | | | | | | RedPrairie Corporation, 2nd Lien Term Loan, 11.250%, 12/14/19 | | | 523,750 | | | | 0.2 | |
| 456,508 | | | | | | Riverbed Technology, Inc., Term Loan, 4.000%, 12/18/19 | | | 462,214 | | | | 0.1 | |
| 1,988,251 | | | | | | Sabre Inc., Term B Facility, 5.253%, 02/15/19 | | | 2,016,823 | | | | 0.6 | |
| 731,144 | | | | | | Spansion LLC, Term Loan, 5.250%, 12/15/18 | | | 739,979 | | | | 0.2 | |
| 1,388,009 | | | | | | SS&C Technologies Inc., Term Loan B-1, 5.000%, 06/01/19 | | | 1,405,359 | | | | 0.4 | |
| 143,587 | | | | | | SS&C Technologies Inc., Term Loan B-2, 5.000%, 06/01/19 | | | 145,921 | | | | 0.0 | |
| | | | | | | | | | 22,414,922 | | | | 6.4 | |
|
| 250,000 | | | | | | Brock Holdings, Inc., New 2nd Lien Term Loan, 10.000%, 03/16/18 | | | 253,438 | | | | 0.1 | |
| 747,922 | | | | | | Brock Holdings, Inc., New Term Loan B, 6.006%, 03/16/17 | | | 758,205 | | | | 0.2 | |
| | | | | | | | | | 1,011,643 | | | | 0.3 | |
Financial Intermediaries: 0.6% |
| 300,000 | | | | | | Duff & Phelps, Term Loan, 03/15/20 | | | 303,562 | | | | 0.1 | |
| 700,000 | | | | | | MIP Delaware, LLC, Term Loan, 03/05/20 | | | 706,125 | | | | 0.2 | |
| 1,009,091 | | | | | | MIP Delaware, LLC, Term Loan, 5.500%, 07/12/18 | | | 1,011,614 | | | | 0.3 | |
| | | | | | | | | | 2,021,301 | | | | 0.6 | |
|
| 1,496,250 | | | | | | Advance Pierre Foods, 1st Lien Term Loan B, 5.750%, 06/30/17 | | | 1,520,564 | | | | 0.4 | |
| 1,000,000 | | | | | | Advance Pierre Foods, 2nd Lien Term Loan, 9.500%, 09/30/17 | | | 1,037,500 | | | | 0.3 | |
| 710,701 | | | | | | NPC International, Term Loan B, 4.500%, 12/28/18 | | | 722,694 | | | | 0.2 | |
| | | | | | | | | | 3,280,758 | | | | 0.9 | |
|
| 870,625 | | | | | | Burger King Corporation, Term Loan B, 3.750%, 09/24/19 | | | 883,590 | | | | 0.2 | |
| 499,249 | | | | | | Hearthside Food Solutions, LLC, Term Loan, 6.503%, 06/07/18 | | | 504,242 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
23
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
Food Service: (continued) |
| 990,000 | | | | | | Landry’s Restaurants, Term Loan B, 4.750%, 04/30/18 | | $ | 999,075 | | | | 0.3 | |
| 1,657,500 | | | | | | OSI Restaurant Partners, Inc., Term Loan, 4.750%, 10/31/19 | | | 1,683,047 | | | | 0.5 | |
| 547,250 | | | | | | P.F. Chang’s China Bistro, Inc., Term Loan B, 5.250%, 06/30/19 | | | 554,775 | | | | 0.2 | |
| | | | | | | | | | 4,624,729 | | | | 1.3 | |
Food/Drug Retailers: 1.5% |
| 900,000 | | | | | | Albertsons LLC, Real Estate Term Loan, 03/21/16 | | | 916,474 | | | | 0.2 | |
| 1,600,000 | | | | | | Rite Aid Corporation, Tranche 6 Term Loan, 4.000%, 02/28/20 | | | 1,618,833 | | | | 0.5 | |
| 1,684,095 | | | | | | Roundys Supermarkets, Inc., Term Loan B, 5.750%, 02/14/19 | | | 1,683,043 | | | | 0.5 | |
| 1,100,000 | | | | | | Supervalu, Real Estate Term Loan, 03/31/19 | | | 1,120,723 | | | | 0.3 | |
| | | | | | | | | | 5,339,073 | | | | 1.5 | |
|
| 423,938 | | | | | | ATI Physical Therapy, Term Loan B, 5.750%, 01/31/20 | | | 431,091 | | | | 0.1 | |
| 2,233,125 | | | | | | Bausch & Lomb, Inc., US Term Loan, 5.250%, 04/30/19 | | | 2,257,243 | | | | 0.7 | |
| 656,934 | | | | | | Bright Horizons Family Solutions Inc., Term Loan B, 4.003%, 01/31/20 | | | 662,956 | | | | 0.2 | |
| 450,000 | | | | | | BSN Medical, Term Loan B1A, 5.000%, 08/28/19 | | | 455,250 | | | | 0.1 | |
| 518,161 | | | | | | CHG Medical Staffing, Inc., 1st lien Term Loan, 5.000%, 11/20/19 | | | 525,610 | | | | 0.2 | |
| 250,000 | | | | | | CHG Medical Staffing, Inc., Second lien Term Loan, 9.000%, 11/20/20 | | | 256,953 | | | | 0.1 | |
| 676,681 | | | | | | ConvaTec, Dollar Term Loan, 5.000%, 12/22/16 | | | 688,735 | | | | 0.2 | |
| 1,449,084 | | | | | | DJO Finance LLC, Tranche B-3 Term Loan, 6.250%, 09/15/17 | | | 1,472,994 | | | | 0.4 | |
| 1,663,164 | | | | | | Emergency Medical Services Corporation, Term Loan B, 4.000%, 05/25/18 | | | 1,686,033 | | | | 0.5 | |
| 1,078,048 | | | | | | Iasis Healthcare LLC, Term B-2, 4.500%, 05/03/18 | | | 1,094,556 | | | | 0.3 | |
| 985,069 | | | | | | Immucor, Inc., Term B-2 loan, 5.000%, 08/17/18 | | | 994,150 | | | | 0.3 | |
| 797,178 | | | | | | inVentiv Health Inc., Original Term Loan B, 7.500%, 08/04/16 | | | 791,200 | | | | 0.2 | |
| 146,643 | | | | | | inVentiv Health Inc., Term B-3, 7.750%, 05/15/18 | | | 145,726 | | | | 0.0 | |
| 2,030,010 | | | | | | Kinetic Concepts, Inc., C-1, 5.500%, 05/04/18 | | | 2,069,342 | | | | 0.6 | |
| 1,741,261 | | | | | | Par Pharmaceutical Companies, Term Loan B, 4.250%, 09/28/19 | | | 1,762,839 | | | | 0.5 | |
| 1,017,151 | | | | | | Pharmaceutical Product Development, Inc., Term Loan B-1, 4.250%, 11/01/17 | | | 1,031,455 | | | | 0.3 | |
| 861,300 | | | | | | Press Ganey, 1st Lien, 5.250%, 04/30/18 | | | 868,477 | | | | 0.3 | |
| 250,000 | | | | | | Press Ganey, 2nd Lien, 8.250%, 08/31/18 | | | 255,625 | | | | 0.1 | |
| 744,375 | | | | | | Select Medical Corporation, Incremental Term Loan, 5.500%, 06/01/18 | | | 749,027 | | | | 0.2 | |
| 442,125 | | | | | | Surgical Care Affiliates LLC, Incremental Term Loan, 5.500%, 06/29/18 | | | 444,336 | | | | 0.1 | |
| 725,000 | | | | | | United Surgical Partners International, Inc., Incremental Term Loan, 04/01/19 | | | 727,416 | | | | 0.2 | |
| 990,025 | | | | | | United Surgical Partners International, Inc., New Tranche B, 7.000%, 04/01/19 | | | 1,000,544 | | | | 0.3 | |
| 997,500 | | | | | | VWR International Inc., New Extended Term Loan B, 4.204%, 04/03/17 | | | 1,009,969 | | | | 0.3 | |
| | | | | | | | | | 21,381,527 | | | | 6.2 | |
|
| 3,000,000 | | | | | | AOT Bedding Super Holdings, LLC, Term Loan B, 5.003%, 10/01/19 | | | 3,045,624 | | | | 0.9 | |
| 495,500 | | | | | | Hillman Group (The), Inc., First Lien Term Loan, 4.250%, 05/31/17 | | | 500,455 | | | | 0.1 | |
| 843,627 | | | | | | Monitronics International, Inc., Term Loan B, 5.500%, 03/28/18 | | | 849,823 | | | | 0.3 | |
| 694,750 | | | | | | Protection One, Inc., Term Loan B, 5.750%, 03/31/19 | | | 701,119 | | | | 0.2 | |
| 997,500 | | | | | | Tempur-Pedic International, Inc., Term Loan B, 5.000%, 12/31/19 | | | 1,012,730 | | | | 0.3 | |
| | | | | | | | | | 6,109,751 | | | | 1.8 | |
Industrial Equipment: 3.5% |
| 547,215 | | | | | | Alliance Laundry Systems LLC, First Lien Term Loan, 4.500%, 12/10/18 | | | 554,056 | | | | 0.2 | |
| 673,313 | | | | | | Ameriforge Group Inc., 1st Lien Term Loan, 6.000%, 01/30/20 | | | 682,991 | | | | 0.2 | |
| 295,000 | | | | | | Ameriforge Group Inc., 2nd Lien Term Loan, 9.750%, 01/30/21 | | | 303,850 | | | | 0.1 | |
| 1,375,000 | | | | | | Apex Tool Group, Term Loan B, 4.500%, 02/01/20 | | | 1,396,484 | | | | 0.4 | |
| 457,483 | | | | | | Edwards (Cayman Islands II) Limited (aka BOC Edwards), New Term Loan, 5.500%, 05/31/16 | | | 458,341 | | | | 0.1 | |
| 2,301,522 | | | | | | Generac Power Systems, Inc., Term Loan B, 6.250%, 05/30/18 | | | 2,361,937 | | | | 0.7 | |
| 1,695,750 | | | | | | Hamilton Sundstrand Industrial, Term Loan, 4.000%, 12/14/19 | | | 1,709,225 | | | | 0.5 | |
| 2,630,000 | | | | | | Schaeffler AG, Term Loan B2, 6.000%, 01/31/17 | | | 2,667,259 | | | | 0.8 | |
| 1,861,745 | | | | | | Terex Corporation, Term Loan, 4.500%, 04/28/17 | | | 1,890,136 | | | | 0.5 | |
| | | | | | | | | | 12,024,279 | | | | 3.5 | |
|
| 2,000,000 | | | | | | Alliant Holdings, I, LLC, Term Loan B, 5.000%, 12/20/19 | | | 2,024,376 | | | | 0.6 | |
| 1,941,384 | | | | | | AmWINS Group, Inc., Term Loan, 5.000%, 09/30/19 | | | 1,966,461 | | | | 0.6 | |
| 430,650 | | | | | | Applied Systems Inc., First Lien Incremental, 5.500%, 12/08/16 | | | 433,342 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
24
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
|
| 249,611 | | | | | | Sedgwick Holdings, Inc., Term Loan B-2, 4.000%, 12/30/13 | | $ | 253,355 | | | | 0.1 | |
| 1,197,000 | | | | | | USI, Inc., Term Loan B, 5.250%, 12/31/19 | | | 1,209,469 | | | | 0.3 | |
| | | | | | | | | | 5,887,003 | | | | 1.7 | |
Leisure Good/Activities/Movies: 3.2% |
| 1,464,950 | | | | | | 24 Hour Fitness Worldwide, Inc, Term Loan B, 7.500%, 04/22/16 | | | 1,481,126 | | | | 0.4 | |
| 990,025 | | | | | | Delta2 Sarl Luxembourg (Formula One World Championship), Term Loan B, 6.000%, 04/30/19 | | | 1,004,169 | | | | 0.3 | |
| 825,000 | | | | | | Equinox Holdings, Inc., First Lien Term Loan, 5.500%, 12/31/19 | | | 839,953 | | | | 0.2 | |
| 250,000 | | | | | | Equinox Holdings, Inc., Second Lien Term Loan, 9.750%, 06/30/20 | | | 256,250 | | | | 0.1 | |
| 764,581 | | | | | | FGI Operating, Add-On Term Loan, 5.500%, 04/30/19 | | | 769,360 | | | | 0.2 | |
| 2,892,750 | | | | | | Getty Images, Inc, Term Loan B, 4.750%, 10/31/19 | | | 2,940,015 | | | | 0.8 | |
| 82,857 | | | | | | NEP/NCP Holdco, Inc, 2nd Lien, 9.500%, 07/23/20 | | | 85,964 | | | | 0.0 | |
| 249,375 | | | | | | NEP/NCP Holdco, Inc, Term Loan B, 4.750%, 01/22/20 | | | 252,180 | | | | 0.1 | |
| 185,000 | | | | | | SRAM, LLC, Second Lien Term Loan, 8.500%, 12/07/18 | | | 188,700 | | | | 0.1 | |
| 345,625 | | | | | | Warner Music Group, 1st Lien Term Loan, 5.250%, 11/01/18 | | | 352,105 | | | | 0.1 | |
| 906,750 | | | | | | Wilton Brands, Inc., Term Loan, 7.500%, 08/31/18 | | | 922,618 | | | | 0.3 | |
| 1,995,000 | | | | | | Zuffa, LLC, Term Loan, 5.750%, 02/15/20 | | | 2,024,925 | | | | 0.6 | |
| | | | | | | | | | 11,117,365 | | | | 3.2 | |
|
| 1,893,750 | | | | | | Boyd Gaming Corporation, Incremental Term Loan, 6.000%, 12/17/15 | | | 1,916,070 | | | | 0.5 | |
| 633,333 | | | | | | Caesars Entertainment Operating Company, Inc., Term Loan B5, 01/28/18 | | | 581,241 | | | | 0.2 | |
| 2,308,577 | | | | | | Caesars Entertainment Operating Company, Inc., Term Loan B6, 5.460%, 01/28/18 | | | 2,144,668 | | | | 0.6 | |
| 700,000 | | | | | | Caesars Octavius, LLC, Term Loan, 9.250%, 02/24/17 | | | 715,750 | | | | 0.2 | |
| 1,874,580 | | | | | | Cannery Casino Resorts, LLC, 1st Lien Term Loan, 6.000%, 10/01/18 | | | 1,911,487 | | | | 0.5 | |
| 675,000 | | | | | | Centaur Acquisition, LLC, 1st Lien Term Loan, 5.250%, 02/21/19 | | | 678,797 | | | | 0.2 | |
| 250,000 | | | | | | Centaur Acquisition, LLC, 2nd Lien Term Loan, 8.750%, 02/21/20 | | | 254,844 | | | | 0.1 | |
| 997,500 | | | | | | MGM Resorts International, Term Loan B, 4.250%, 12/20/19 | | | 1,015,491 | | | | 0.3 | |
| 1,246,875 | | | | | | Peppermill Casinos, Inc., Term Loan B, 7.250%, 10/31/19 | | | 1,277,267 | | | | 0.4 | |
| 3,000,000 | | | | | | Station Casinos LLC, Term Loan, 02/28/20 | | | 3,037,500 | | | | 0.9 | |
| | | | | | | | | | 13,533,115 | | | | 3.9 | |
Nonferrous Metals/Minerals: 0.6% |
| 910,000 | | | | | | Constellium Holdco BV, Term Loan B, 03/18/20 | | | 935,025 | | | | 0.2 | |
| 1,028,828 | | | | | | Fairmount Minerals, Ltd., Term Loan B, 5.250%, 03/15/17 | | | 1,036,758 | | | | 0.3 | |
| 249,370 | | | | | | Noranda Aluminum Acquisition Corp., Term Loan, 5.750%, 02/28/19 | | | 253,579 | | | | 0.1 | |
| | | | | | | | | | 2,225,362 | | | | 0.6 | |
|
| 469,888 | | | | | | Crestwood Holdings LLC, Term Loan B, 9.750%, 03/30/18 | | | 479,285 | | | | 0.1 | |
| 2,221,533 | | | | | | FTS International, Inc. (fka FracTech), Term Loan (HoldCo), 8.500%, 05/06/16 | | | 2,116,937 | | | | 0.6 | |
| 1,255,000 | | | | | | Plains Exploration & Production Company, Term Loan B, 4.000%, 11/30/19 | | | 1,259,706 | | | | 0.4 | |
| 350,000 | | | | | | Samson Investment Company, 2nd Lien Term Loan, 6.000%, 09/28/18 | | | 355,075 | | | | 0.1 | |
| 900,000 | | | | | | Tervita Corporation (fka CCS Inc.), Term Loan, 7.250%, 05/15/18 | | | 911,953 | | | | 0.3 | |
| | | | | | | | | | 5,122,956 | | | | 1.5 | |
|
| 1,361,318 | | | | | | Cengage Learning, Inc., Extended Term Loan B, 5.710%, 07/31/17 | | | 1,010,779 | | | | 0.3 | |
| 1,051,496 | | | | | | Cenveo Corporation, Term Loan B, 7.000%, 12/21/16 | | | 1,057,411 | | | | 0.3 | |
| 1,000,000 | | | | | | McGraw Hill Global Education, Term Loan B, 03/29/19 | | | 970,000 | | | | 0.3 | |
| 400,000 | | | | | | Merrill Communications, LLC, Term Loan B, 7.250%, 03/30/18 | | | 402,000 | | | | 0.1 | |
| 768,977 | | | | | | R.H. Donnelley Corporation, Term Loan, 9.000%, 10/24/14 | | | 546,695 | | | | 0.1 | |
| | | | | | | | | | 3,986,885 | | | | 1.1 | |
|
| 731,022 | | | | | | Barrington Broadcasting Group, Term Loan B, 7.588%, 06/30/17 | | | 737,418 | | | | 0.2 | |
| 2,476,399 | | | | | | Clear Channel Communications, Inc., Term Loan B, 3.862%, 01/28/16 | | | 2,200,900 | | | | 0.6 | |
| 1,973,479 | | | | | | Cumulus Media Holdings Inc., First Lien Term Loan B, 4.500%, 12/09/18 | | | 2,001,355 | | | | 0.6 | |
| 1,000,000 | | | | | | Cumulus Media Holdings Inc., Second Lien Term Loan B, 7.500%, 02/11/19 | | | 1,040,000 | | | | 0.3 | |
| 429,026 | | | | | | Entercom Communications Corporation, B-1, 5.000%, 11/22/18 | | | 438,143 | | | | 0.1 | |
| 622,499 | | | | | | FoxCo Acquisition, LLC, Term Loan B, 5.500%, 07/31/17 | | | 634,690 | | | | 0.2 | |
| 867,568 | | | | | | Gray Television, Inc., Term Loan B, 4.750%, 10/31/19 | | | 881,665 | | | | 0.3 | |
See Accompanying Notes to Financial Statements
25
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
Radio & Television: (continued) |
| 250,000 | | | | | | Hubbard Radio LLC, Tranche 1 Term Loan, 4.500%, 04/28/17 | | $ | 254,687 | | | | 0.1 | |
| 208,000 | | | | | | Nexstar Broadcasting, Inc., Mission Term B Facility, 4.500%, 11/30/19 | | | 211,900 | | | | 0.1 | |
| 492,000 | | | | | | Nexstar Broadcasting, Inc., Nexstar Term B Facility, 4.500%, 11/30/19 | | | 501,225 | | | | 0.1 | |
| 1,875,000 | | | | | | Nine Entertainment, Term Loan, 02/06/20 | | | 1,882,911 | | | | 0.5 | |
| 343,875 | | | | | | Raycom TV Broadcasting, LLC, Term Loan B, 4.250%, 05/31/17 | | | 349,033 | | | | 0.1 | |
| 750,000 | | | | | | Salem Communications Corporation, Term Loan B, 03/31/20 | | | 761,250 | | | | 0.2 | |
| 5,000,000 | | | | | | Univision Communications, Inc., Term Loan C2, 4.750%, 02/13/20 | | | 5,035,625 | | | | 1.5 | |
| 813,127 | | | | | | Univision Communications, Inc., Extended Term Loan, 4.462%, 03/31/17 | | | 818,920 | | | | 0.2 | |
| | | | | | | | | | 17,749,722 | | | | 5.1 | |
Retailers (Except Food & Drug): 8.6% |
| 1,580,060 | | | | | | Academy Ltd., Term Loan (2012 refi), 4.750%, 08/03/18 | | | 1,602,522 | | | | 0.5 | |
| 1,995,000 | | | | | | Bass Pro Group, LLC, Term Loan B, 4.042%, 11/20/19 | | | 2,018,276 | | | | 0.6 | |
| 4,089,750 | | | | | | BJs Wholesale Club, First Lien Term Loan, 4.250%, 09/27/18 | | | 4,133,204 | | | | 1.2 | |
| 1,363,364 | | | | | | BJs Wholesale Club, Second Lien Term Loan, 9.750%, 03/27/19 | | | 1,418,751 | | | | 0.4 | |
| 499,865 | | | | | | Guitar Center, Inc., Extended Term Loan maturing 04/17, 5.560%, 04/10/17 | | | 496,741 | | | | 0.1 | |
| 1,492,500 | | | | | | Harbor Freight Tools USA, Inc., Senior Secured Term Loan, 5.500%, 05/15/19 | | | 1,513,022 | | | | 0.4 | |
| 489,700 | | | | | | Leslies Poolmart, Inc., Term Loan, 5.230%, 10/15/19 | | | 497,658 | | | | 0.1 | |
| 537,088 | | | | | | Lord & Taylor, Term Loan Facility, 5.750%, 01/09/18 | | | 543,578 | | | | 0.2 | |
| 1,550,000 | | | | | | Michaels Stores, Inc., Term Loan B, 3.750%, 01/30/20 | | | 1,568,722 | | | | 0.4 | |
| 571,429 | | | | | | Northern Tool & Equipment Company, Inc., Term Loan, 7.018%, 12/10/19 | | | 580,000 | | | | 0.2 | |
| 965,696 | | | | | | Ollie’s Holdings, Inc., Term Loan, 6.250%, 09/25/19 | | | 975,353 | | | | 0.3 | |
| 1,750,000 | | | | | | OneStopPlus, Term Loan B, 5.500%, 02/01/20 | | | 1,766,406 | | | | 0.5 | |
| 3,990,000 | | | | | | Party City Holdings Inc., Term Loan B, 4.250%, 07/27/19 | | | 4,024,913 | | | | 1.2 | |
| 917,056 | | | | | | Pep Boys, Term Loan B, 5.000%, 10/01/18 | | | 933,082 | | | | 0.3 | |
| 1,143,006 | | | | | | Savers, Term Loan B, 5.000%, 07/09/19 | | | 1,161,580 | | | | 0.3 | |
| 727,650 | | | | | | Sleepy’s Holdings, LLC, Term Loan, 7.250%, 03/19/19 | | | 734,017 | | | | 0.2 | |
| 798,000 | | | | | | Sportsman’s Warehouse, Inc., Term Loan, 8.500%, 11/15/18 | | | 805,980 | | | | 0.2 | |
| 1,326,933 | | | | | | The Gymboree Corporation, Term Loan B, 5.000%, 02/23/18 | | | 1,291,769 | | | | 0.4 | |
| 1,711,174 | | | | | | Toys “R” Us, Inc., Term Loan B-1, 6.000%, 09/01/16 | | | 1,679,518 | | | | 0.5 | |
| 343,875 | | | | | | Toys “R” Us, Inc., Term Loan B-2, 5.250%, 05/25/18 | | | 329,260 | | | | 0.1 | |
| 496,250 | | | | | | Toys “R” Us, Inc., Term Loan B-3, 5.250%, 05/25/18 | | | 474,952 | | | | 0.1 | |
| 1,241,056 | | | | | | Yankee Candle Company, Inc., Term Loan B, 5.250%, 04/02/19 | | | 1,255,406 | | | | 0.4 | |
| | | | | | | | | | 29,804,710 | | | | 8.6 | |
|
| 1,890,500 | | | | | | FMG Resources (August 2006) Pty Ltd, Term Loan, 5.250%, 10/16/17 | | | 1,915,144 | | | | 0.5 | |
| |
|
| 500,000 | | | | | | Baker Tanks, Inc., Term Loan, 4.250%, 02/15/20 | | | 503,334 | | | | 0.1 | |
| 1,237,500 | | | | | | Wabash National Corporation, Term Loan, 6.000%, 05/15/19 | | | 1,256,062 | | | | 0.4 | |
| | | | | | | | | | 1,759,396 | | | | 0.5 | |
|
| 1,000,000 | | | | | | Alcatel-Lucent, Asset Sale Loan, 6.250%, 07/23/16 | | | 1,015,938 | | | | 0.3 | |
| 1,346,625 | | | | | | Alcatel-Lucent, US Term Loan, 7.250%, 01/23/19 | | | 1,370,051 | | | | 0.4 | |
| 4,079,850 | | | | | | Asurion, LLC, Incremental Tranche B-1 Term Loan, 4.500%, 05/24/19 | | | 4,117,674 | | | | 1.2 | |
| 2,026,006 | | | | | | Consolidated Communications, Inc., Term Loan B-3, 5.250%, 12/31/18 | | | 2,054,708 | | | | 0.6 | |
| 575,000 | | | | | | Cricket Communications, Inc., Term Loan C, 04/16/20 | | | 579,402 | | | | 0.1 | |
| 2,159,622 | | | | | | Global Tel*Link Corporation, First Lien Term Loan, 6.000%, 12/15/17 | | | 2,173,119 | | | | 0.6 | |
| 2,000,000 | | | | | | Level 3 Financing, Inc, Tranche B-II 2019 Term Loan, 4.750%, 08/01/19 | | | 2,025,208 | | | | 0.6 | |
| 250,000 | | | | | | Level 3 Financing, Inc, 2019 Term Loan, 5.250%, 08/01/19 | | | 253,469 | | | | 0.1 | |
| 623,438 | | | | | | SBA Senior Finance II LLC, Incremental Term Loan, 3.750%, 09/25/19 | | | 632,789 | | | | 0.2 | |
| 1,488,750 | | | | | | Syniverse Holdings, Inc., Term Loan B, 5.000%, 04/20/19 | | | 1,500,382 | | | | 0.4 | |
| 1,302,349 | | | | | | U.S. Telepacific Corp, First Lien Term Loan, 5.750%, 02/23/17 | | | 1,302,756 | | | | 0.4 | |
| 798,000 | | | | | | Windstream Corporation, Term Loan B-4, 3.500%, 01/23/20 | | | 806,978 | | | | 0.2 | |
| 2,407,870 | | | | | | Zayo Group, LLC, Term Loan B, 5.250%, 07/02/19 | | | 2,430,658 | | | | 0.7 | |
| | | | | | | | | | 20,263,132 | | | | 5.8 | |
|
| 995,000 | | | | | | Calpine Corp, New Term Loan, 4.500%, 10/10/19 | | | 1,009,552 | | | | 0.3 | |
| 1,228,380 | | | | | | Dynegy Midwest Generation, LLC (CoalCo)., Term Loan, 9.250%, 08/04/16 | | | 1,284,681 | | | | 0.4 | |
| 834,719 | | | | | | Dynegy Power (GasCo), Term Loan, 9.250%, 08/04/16 | | | 871,760 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
26
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING FLOATING RATE FUND
Principal Amount†
|
|
|
|
|
| Borrower/Tranche Description
|
| Fair Value
|
| Percentage
of Net
Assets
|
|---|
|
| 749,052 | | | | | | EquiPower Resources Holdings, LLC, Term Loan, 5.500%, 12/21/18 | | $ | 762,628 | | | | 0.2 | |
| 1,787,818 | | | | | | Texas Competitive Electric Holdings Company LLC, Extended Term Loans, 4.746%, 10/10/17 | | | 1,273,812 | | | | 0.4 | |
| 481,940 | | | | | | Texas Competitive Electric Holdings Company LLC, Term Loans, 3.746%, 10/10/14 | | | 355,581 | | | | 0.1 | |
| | | | | | | | | | 5,558,014 | | | | 1.6 | |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | | 316,675,598 | | | | 91.1 | |
| |
| | | | | | | | | | |
Short-Term Investments: 13.7% |
Short-Term Investments: 13.7% |
| 47,500,000 | | | | | | State Street Institutional Liquid Reserves Fund — Institutional Class | | | | | | | | |
| | | | | | | | | $ | 47,500,000 | | | | 13.7 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | | | | 47,500,000 | | | | 13.7 | |
| |
| | | | | | | | | | | | | | | |
| | | | | | | | | $ | 364,175,598 | | | | 104.8 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (16,700,035 | ) | | | (4.8 | ) |
| | | | | | | | | $ | 347,475,563 | | | | 100.0 | |
| | | | | | | Loans, while exempt from registration under the Securities Act of 1933, as amended, contain certain restrictions on resale and cannot be sold publicly. These loans bear interest (unless otherwise noted) at rates that float periodically at a margin above the London Inter-Bank Offered Rate (“LIBOR”) and other short-term rates. | | | | | | | | |
| | | | | | | Unless otherwise indicated, principal amount is shown in USD. | | | | | | | | |
| | | | | | | Trade pending settlement. Contract rates that are not disclosed do not take effect until settlement date and have yet to be determined. | | | | | | | | |
| |
| | | | | | | Cost for federal income tax purposes is $359,629,540. | | | | | | | | |
| |
| | | | | | | Net unrealized appreciation consists of: | | | | | | | | |
| |
| | | | | | | Gross Unrealized Appreciation | | $ | 5,762,347 | | | | | |
| | | | | | | Gross Unrealized Depreciation | | | (1,216,289 | ) | | | | |
| | | | | | | Net Unrealized Appreciation | | $ | 4,546,058 | | | | | |
The following is a summary of the fair valuations according to the inputs used as of March 31, 2013 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical Investments
(Level 1)
| | Significant Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
March 31, 2013
|
|---|
| | | | | | | | | | | | | | | | | | |
Investments, at fair value | | | | | | | | | | | | | | | | | | |
| | | | $ | — | | | $ | 316,675,598 | | | $ | — | | | $ | 316,675,598 | |
| | | | | 47,500,000 | | | | — | | | | — | | | | 47,500,000 | |
Total Investments, at fair value | | | | $ | 47,500,000 | | | $ | 316,675,598 | | | $ | — | | | $ | 364,175,598 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| | | | | — | | | | 130 | | | | — | | | | 130 | |
| | | | $ | 47,500,000 | | | $ | 316,675,728 | | | $ | — | | | $ | 364,175,728 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts and unfunded commitments which are fair valued at the unrealized gain (loss) on the instrument. |
See Accompanying Notes to Financial Statements
27
TAX INFORMATION (UNAUDITED)
Dividends and distributions paid during the year ended March 31, 2013 were as follows:
Fund Name
| | | | Type
| | Per Share Amount
|
|---|
| | | | | | | | | | |
| | | | | NII | | | $ | 0.5262 | |
| | | | | NII | | | $ | 0.4507 | |
| | | | | NII | | | $ | 0.5514 | |
| | | | | NII | | | $ | 0.5010 | |
| | | | | NII | | | $ | 0.5514 | |
| | | | | STCG | | | $ | 0.0109 | |
| | | | | LTCG | | | $ | 0.0110 | |
NII — Net investment income
STCG — Short-term capital gain
LTCG — Long-term capital gain
Pursuant to Internal Revenue Code Section 871(k)(1), the Fund designates 96.33% of net investment income distributions as interest-related dividends.
The Fund designates 100% of its short-term capital gain distributions as short-term capital gain dividends as defined in Internal Revenue Code Section 871(k)(2).
Above figures may differ from those cited elsewhere in this report due to differences in the calculation of income and gains under U.S. generally accepted accounting principles (book) purposes and Internal Revenue Service (tax) purposes.
Shareholders are strongly advised to consult their own tax advisers with respect to the tax consequences of their investments in the Fund. In January, shareholders, excluding corporate shareholders, receive an IRS 1099-DIV regarding the federal tax status of the dividends and distributions they received in the calendar year.
28
TRUSTEE AND OFFICER INFORMATION (UNAUDITED)
The business and affairs of the Trust are managed under the direction of the Trust’s Board. A Trustee, who is not an interested person of the Trust, as defined in the 1940 Act, is an independent trustee (“Independent Trustee”). The Trustees and Officers of the Trust, as of March 31, 2013, are listed below. The Statement of Additional Information includes additional information about trustees of the Trust and is available, without charge, upon request at (800) 992-0180.
Name, Address and Age
| | | | Position(s)
Held with
the Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal
Occupation(s)
—During the
Past 5 Years
| | Number
of Funds
in Fund
Complex
Overseen by
Trustee(2)
| | Other
Board Positions
Held by Trustee
|
|---|
| |
| | | | | | | | | | | | | | | | | | | | | | |
| |
Colleen D. Baldwin
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 52 | | | | | | | | President, Glantuam Partners, LLC, a business consulting firm (January 2009–Present). | | | | |
| |
John V. Boyer
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 59 | | | | | | | | President and Chief Executive Officer, Bechtler Arts Foundation, an arts and education foundation (January 2008–Present). | | | | |
| |
Patricia W. Chadwick
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 64 | | | | | | | | Consultant and President, Ravengate Partners LLC, a consulting firm that provides advice regarding financial markets and the global economy (January 2000–Present). | | | | Wisconsin Energy Corporation (June 2006–Present) and The Royce Fund, (35 funds) (December 2009–Present). |
| |
Peter S. Drotch
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 71 | | | | | | | | | | | | First Marblehead Corporation (September 2003–Present). |
| |
J. Michael Earley
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 67 | | | | | | | | Retired. Formerly, Banking President and Chief Executive Officer, Bankers Trust Company, N.A., Des Moines (June 1992–December 2008). | | | | |
| |
Patrick W. Kenny
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 70 | | | | | | | | Retired. Formerly, President and Chief Executive Officer, International Insurance Society (June 2001–June 2009). | | | | Assured Guaranty Ltd. (April 2004–Present). |
| |
Sheryl K. Pressler
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 62 | | | | | | | | Consultant (May 2001–Present). | | | | Stillwater Mining Company (May 2002–Present). |
| |
Roger B. Vincent
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 67 | | | | | | | | Retired. Formerly, President, Springwell Corporation, a corporate finance firm (March 1989–August 2011). | | | | UGI Corporation (February 2006–Present) and UGI Utilities, Inc. (February 2006–Present). |
29
TRUSTEE AND OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
| | | | Position(s)
Held with
the Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal
Occupation(s)
—During the
Past 5 Years
| | Number
of Funds
in Fund
Complex
Overseen by
Trustee(2)
| | Other
Board Positions
Held by Trustee
|
|---|
| |
Trustees who are “Interested Persons”: |
| |
Robert W. Crispin(3)
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 66 | | | | | | | | | | | | Intact Financial Corporation (December 2004–Present) and PFM Group (November 2010–Present). |
| |
Shaun P. Mathews(3)
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 57 | | | | | | | | President and Chief Executive Officer, ING Investments, LLC (November 2006–Present). | | | | ING Capital Corporation, LLC (December 2005–Present). |
(1) | | Subject to the Board’s retirement policy, Trustees serve until their successors are duly elected and qualified. The Board’s retirement policy states that each duly elected or appointed Trustee who is not an “interested person” of the Trust, as defined in the 1940 Act, as amended (“Independent Trustees”), shall retire from service as a Trustee at the close of business on December 31 of the calendar year in which the Trustee reaches the age of 73. A majority vote of the Board may extend the retirement date of a Trustee if such retirement would trigger a requirement to hold a meeting of shareholders of the Trust under applicable law, whether for purposes of appointing a successor to the Trustee or if otherwise necessary under applicable law, in which case the extension would apply until such time as the shareholder meeting can be held or is no longer needed. |
(2) | | Except for Mr. Mathews and for the purposes of this table “Fund Complex” means the following investment companies: ING Asia Pacific High Dividend Equity Income Fund; ING Emerging Markets High Dividend Equity Fund; ING Emerging Markets Local Bond Fund; ING Equity Trust; ING Funds Trust; ING Global Equity Dividend and Premium Opportunity Fund; ING Global Advantage and Premium Opportunity Fund; ING Global Strategic Income Fund; ING Infrastructure, Industrials and Materials Fund; ING International High Dividend Equity Income Fund; ING Investors Trust; ING Mayflower Trust; ING Mutual Funds; ING Partners, Inc.; ING Prime Rate Trust; ING Risk Managed Natural Resources Fund; ING Senior Income Fund; ING Separate Portfolios Trust; ING Short Duration High Income Fund; ING Variable Insurance Trust; and ING Variable Products Trust. For Mr. Mathews, the ING Fund Complex also includes the following investment companies: ING Balanced Portfolio, Inc.; ING Intermediate Bond Portfolio; ING Money Market Portfolio; ING Series Fund, Inc.; ING Strategic Allocation Portfolios, Inc.; ING Variable Funds; and ING Variable Portfolios, Inc. Therefore, for the purposes of this table with reference to Mr. Mathews, “Fund Complex” includes these investment companies. The number of funds in the ING Fund Complex is as of March 31, 2013. |
(3) | | Messrs. Crispin and Mathews are deemed “Interested Persons” of the Trust because of their current or prior affiliation with ING Groep, N.V., the parent corporation of the Investment Adviser(s) and the Distributor. |
30
TRUSTEE AND OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
| | | | Position(s) Held
With the Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal Occupation(s)—
During the Past 5 Years
|
|---|
| |
Shaun P. Mathews
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 57 | | | | President and Chief Executive Officer | | | | President and Chief Executive Officer, ING Investments, LLC (November 2006–Present). |
| |
Michael J. Roland
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 54 | | | | | | | | Managing Director and Chief Operating Officer, ING Investments, LLC and ING Funds Services, LLC (April 2012–Present) and Chief Compliance Officer, Directed Services LLC and ING Investments, LLC (March 2011–Present). Formerly, Executive Vice President and Chief Operating Officer, ING Investments, LLC and ING Funds Services, LLC (January 2007–April 2012) and Chief Compliance Officer, ING Funds (March 2011–February 2012). |
| |
Stanley D. Vyner
230 Park Avenue
New York, New York 10169
Age: 62 | | | | Executive Vice President
Chief Investment Risk Officer | | October 2000–Present
September 2009–Present | | Executive Vice President, ING Investments, LLC (July 2000–Present) and Chief Investment Risk Officer, ING Investments, LLC (January 2003–Present). |
| |
Kevin M. Gleason
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 46 | | | | | | | | Senior Vice President, ING Investments, LLC (February 2012–Present). Formerly, Assistant General Counsel and Assistant Secretary, The Northwestern Mutual Life Insurance Company (June 2004–January 2012). |
| |
Todd Modic
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 45 | | | | Senior Vice President, Chief/Principal Financial Officer and Assistant Secretary | | | | Senior Vice President, ING Funds Services, LLC (March 2005–Present). |
| |
Kimberly A. Anderson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 48 | | | | | | | | Senior Vice President, ING Investments, LLC (October 2003–Present). |
| |
Robert Terris
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 42 | | | | | | | | Senior Vice President, Head of Division Operations, ING Funds Services, LLC (January 2006–Present). |
| |
Julius A. Drelick, III
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 46 | | | | | | | | Senior Vice President — Fund Compliance, ING Funds Services, LLC (June 2012–Present). Formerly, Vice President — Platform Product Management & Project Management, ING Investments, LLC (April 2007–June 2012). |
| |
Fred Bedoya
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 40 | | | | Vice President and Treasurer | | | | Vice President, ING Funds Services, LLC (March 2012–Present). Formerly, Assistant Vice President — Director, ING Funds Services, LLC (March 2003–March 2012). |
| |
Robyn L. Ichilov
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 45 | | | | | | | | Vice President and Treasurer, ING Funds Services, LLC (November 1995–Present) and ING Investments, LLC (August 1997–Present). Formerly, Treasurer, ING Funds (November 1999–February 2012). |
| |
Maria M. Anderson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 54 | | | | | | | | Vice President, ING Funds Services, LLC (September 2004–Present). |
| |
Lauren D. Bensinger
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 59 | | | | | | | | Vice President, ING Investments, LLC and ING Funds Services, LLC (February 1996–Present); Director of Compliance, ING Investments, LLC (October 2004–Present); and Vice President and Money Laundering Reporting Officer, ING Investments Distributor, LLC (April 2010–Present). Formerly, Chief Compliance Officer, ING Investments Distributor, LLC (August 1995–April 2010). |
31
TRUSTEE AND OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
| | | | Position(s) Held
With the Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal Occupation(s)—
During the Past 5 Years
|
|---|
| |
Jason Kadavy
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 37 | | | | | | | | Vice President, ING Funds Services, LLC (July 2007–Present). |
| |
Kimberly K. Springer
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 55 | | | | | | | | Vice President — Platform Product Management & Project Management, ING Investments, LLC (July 2012–Present); Vice President, ING Investment Management — ING Funds (March 2010–Present) and Vice President, ING Funds Services, LLC (March 2006–Present). Formerly Managing Paralegal, Registration Statements (June 2003–July 2012). |
| |
Craig Wheeler
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 43 | | | | | | | | Vice President — Director of Tax, ING Funds Services, LLC (March 2013–Present). Formerly, Assistant Vice President — Director of Tax, ING Funds Services, LLC (March 2008–March 2013). |
| |
Huey P. Falgout, Jr.
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 49 | | | | | | | | Senior Vice President and Chief Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Chief Counsel, ING Americas, U.S. Legal Services (October 2003–March 2010). |
| |
Theresa K. Kelety
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 50 | | | | | | | | Vice President and Senior Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Senior Counsel, ING Americas, U.S. Legal Services (April 2008–March 2010) and Counsel, ING Americas, U.S. Legal Services (April 2003–April 2008). |
| |
Paul A. Caldarelli
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 61 | | | | | | | | Vice President and Senior Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Senior Counsel, ING Americas, U.S. Legal Services (April 2008–March 2010) and Counsel, ING Americas, U.S. Legal Services (May 2005–April 2008). |
(1) | | The Officers hold office until the next annual meeting of the Board of Trustees and until their successors shall have been elected and qualified. |
32
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED)
BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY CONTRACTS
Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), provides that, after an initial period, the existing investment advisory and sub-advisory contracts for ING Floating Rate Fund (the “Fund”), a series of ING Funds Trust (the “Trust”), will remain in effect only if the Board of Trustees (the “Board”) of the Trust, including a majority of Board members who have no direct or indirect interest in the advisory and sub-advisory contracts, and who are not “interested persons” of the Fund, as such term is defined under the 1940 Act (the “Independent Trustees”), annually review and approve them. Thus, at a meeting held on November 29, 2012, the Board, including a majority of the Independent Trustees, considered whether to renew the investment advisory contract (the “Advisory Contract”) between ING Investments, LLC (the “Adviser”) and the Fund and the sub-advisory contract (“Sub-Advisory Contract”) between the Adviser and ING Investment Management Co. LLC, the sub-adviser to the Fund (the “Sub-Adviser”).
The Independent Trustees also held separate meetings on October 24 and November 27, 2012 to consider the renewal of the Advisory and Sub-Advisory Contracts. As a result, subsequent references herein to factors considered and determinations made by the Independent Trustees include, as applicable, factors considered and determinations made on those earlier dates by the Independent Trustees.
At its November 29, 2012 meeting, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund. In reaching these decisions, the Board took into account information furnished to it throughout the year at meetings of the Board and the Board’s committees, as well as information prepared specifically in connection with the annual renewal process. Determinations by the Independent Trustees also took into account various factors that they believed, in light of the legal advice furnished to them by K&L Gates LLP (“K&L Gates”), their independent legal counsel, and their own business judgment, to be relevant. Further, while the Board considered at the same meeting the advisory contracts and sub-advisory contracts that were subject to renewal for the investment companies in the ING Fund complex under its jurisdiction (“ING Funds”), the Trustees considered the Fund’s advisory and sub-advisory relationships separately.
Provided below is an overview of the Board’s contract approval process in general, as well as a discussion of certain specific factors that the Board considered at its renewal meeting. While the Board gave its attention to the information furnished at the request of the Independent Trustees that was most relevant to its considerations, discussed below are a number of the primary factors relevant to the Board’s consideration as to whether to renew the Advisory and Sub-Advisory Contracts for the one-year period ending November 30, 2013. Each Board member may have accorded different weight to the various factors in reaching his or her conclusions with respect to the Fund’s advisory and sub-advisory arrangements.
Overview of the Contract Renewal and Approval Process
The Board follows a structured process pursuant to which it seeks and considers relevant information when it decides whether to approve new or existing advisory and sub-advisory arrangements for the ING Funds, including the Fund’s existing Advisory and Sub-Advisory Contracts. Among other actions, the Independent Trustees of the Board: retain the services of independent consultants with experience in the mutual fund industry to assist the Independent Trustees in working with the personnel employed by the Adviser or its affiliates who administer the Fund (“Management”) to identify the types of information presented to the Board to inform its deliberations with respect to advisory and sub-advisory relationships and to help evaluate that information; evaluate industry best practices in regard to the consideration of investment advisory and sub-advisory contracts; establish a specific format in which certain requested information is provided to the Board; and determine the process for reviewing such information in connection with advisory and sub-advisory contract renewals and approvals. The result is a process (the “Contract Review Process”) employed by the Board and its Independent Trustees to review and analyze information in connection with the annual renewal of the ING Funds’ advisory and sub-advisory contracts, as well as the review and approval of new advisory and sub-advisory relationships.
Since the Contract Review Process was first implemented, the Board’s membership has changed through periodic retirements of some Trustees and the appointment and election of new Trustees. In addition, the Independent Trustees have reviewed and refined the renewal and approval process at least annually in order to request additional or revised information from Management and address certain unique characteristics related to new or existing ING Funds.
The Board has established (among other committees) two Investment Review Committees (each, an “IRC”),
33
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
which meet independently and, at times, jointly, and a Contracts Committee. Among other matters, the Contracts Committee provides oversight with respect to the Contract Review Process, and the Fund is assigned jointly to both IRCs, which provide oversight regarding, among other matters, the investment performance of the Adviser and Sub-Adviser, as well as the oversight by the Adviser of the performance of the Sub-Adviser. The IRCs may apply a heightened level of scrutiny in cases where performance has lagged the Fund’s relevant benchmark, Lipper, Inc. (“Lipper”) category median, and/or Morningstar, Inc. (“Morningstar”) category median, as applicable.
The type and format of the information provided to the Board or to legal counsel for the Independent Trustees in connection with the Contract Review Process has been codified in a 15(c) methodology guide for the ING Funds (“15(c) Methodology Guide”). This guide was developed under the direction of the Independent Trustees and sets out a blueprint pursuant to which the Independent Trustees request certain information that they deem important to facilitate an informed review in connection with initial and annual approvals of advisory and sub-advisory contracts. The Independent Trustees review and update the 15(c) Methodology Guide annually.
Management provides certain of the information requested by the 15(c) Methodology Guide in Fund Analysis and Comparison Tables (“FACT sheets”) prior to the Independent Trustees’ review of advisory and sub-advisory arrangements (including the Fund’s Advisory and Sub-Advisory Contracts). The Independent Trustees previously retained an independent firm to verify and test the accuracy of certain FACT sheets data for a representative sample of the ING Funds. In addition, the Contracts Committee routinely employs the services of an independent consultant to assist in its review and analysis of, among other matters, the 15(c) Methodology Guide, the content and format of the FACT sheets, and the selected peer group of investment companies (“Selected Peer Group”) to be used by the Fund for certain comparison purposes during the renewal process. As part of an ongoing process, the Contracts Committee recommends or considers recommendations from Management for refinements to the 15(c) Methodology Guide and other aspects of the review process, and the Board’s IRCs review benchmarks used to assess the performance of the ING Funds.
The Board employed its process for reviewing contracts when considering the renewals of the Fund’s Advisory and Sub-Advisory Contracts that would be effective through November 30, 2013. Set forth below is a discussion of many of the Board’s primary considerations and conclusions resulting from this process.
Nature, Extent and Quality of Service
In determining whether to approve the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2013, the Independent Trustees received and evaluated such information as they deemed necessary regarding the nature, extent and quality of services provided to the Fund by the Adviser and Sub-Adviser. This included information regarding the Adviser and Sub-Adviser provided throughout the year at meetings of the Board and its committees, as well as information furnished in connection with the contract renewal meetings.
The materials requested by the Independent Trustees and provided to the Board, K&L Gates and/or independent consultants that assist the Independent Trustees prior to the November 29, 2012 Board meeting included, among other information, the following items for the Fund: (1) FACT sheets that provided information regarding the expenses of the Fund and other similarly managed funds in its Selected Peer Group, as well as information regarding the Fund’s performance, investment portfolio, objective and strategies; (2) reports providing risk and attribution analyses of the Fund; (3) the 15(c) Methodology Guide, which describes how the FACT sheets were prepared, including the manner in which the Fund’s benchmark and Selected Peer Group were selected and how profitability was determined; (4) responses from the Adviser and Sub-Adviser to a series of questions posed by K&L Gates on behalf of the Independent Trustees; (5) copies of the forms of Advisory and Sub-Advisory Contracts; (6) copies of the Forms ADV for the Adviser and Sub-Adviser; (7) financial statements for the Adviser and Sub-Adviser; (8) a draft of a narrative summary addressing key factors the Board customarily considers in evaluating the renewals of the ING Funds’ (including the Fund’s) advisory contracts and sub-advisory contracts, including a written analysis for the Fund of how performance, fees and expenses compare to its Selected Peer Group and/or designated benchmark(s); (9) independent analyses of Fund performance by the Trust’s Chief Investment Risk Officer; (10) information regarding net asset flows into and out of the Fund; and (11) other information relevant to the Board’s evaluations.
The Board also noted that pursuant to an agreement with the European Commission, ING Groep, N.V. (“ING Groep”), the ultimate parent company of the Adviser and Sub-Adviser, has announced its intention to divest
34
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
ING U.S., Inc. (“ING U.S.”), its U.S.-based insurance, retirement services and investment management operations, which include the Adviser and Sub-Adviser, into an independent, standalone company by the end of 2016 (such divestment, the “Separation Plan”). ING U.S. is a wholly owned, indirect subsidiary of ING Groep and a parent company of the Adviser and the Sub-Adviser. The Board further noted that the Separation Plan may result in the Adviser and Sub-Adviser’s loss of access to the services and resources of their current ultimate parent company, which could adversely affect its businesses and profitability. The Board recognized that the Separation Plan contemplates one or more public offerings and each may be deemed to be a change of control. If a change of control is deemed to take place, the investment advisory and sub-advisory agreements for the ING Funds, including the Fund, would terminate and trigger the necessity for new agreements, which would require the approval of the Board and, potentially, the shareholders of an ING Fund. The Board also recognized that there can be no assurance that the Separation Plan will be carried out. The Board considered the potential effects of the separation on the Fund, Adviser and Sub-Adviser, including their ability prior to, during and after the separation to perform the same level of service to the Fund as the Adviser and Sub-Adviser currently provide. In this regard, the Board noted that the Adviser and Sub-Adviser do not currently anticipate that the separation would have a material adverse impact on the Fund or their operations and administration. The Separation Plan is discussed in more detail below under “Approval of Investment Advisory and Sub-Advisory Contracts in Connection with Separation Plan.”
Class A shares were used for purposes of certain comparisons between the Fund and its Selected Peer Group. Class A shares generally were selected so that the Fund’s share class with the longest performance history was compared to the analogous class of shares for the funds in its Selected Peer Group. The mutual funds included in the Fund’s Selected Peer Group were selected based upon criteria designed to represent the Fund share class being compared to the Selected Peer Group.
In arriving at its conclusions with respect to the Advisory Contract, the Board was mindful of the “manager-of-managers” platform of the ING Funds that has been developed by the Adviser. The Board recognized that the Adviser is responsible for monitoring the investment program and performance of the Sub-Adviser under this manager-of-managers arrangement. The Board also considered the techniques and resources that the Adviser has developed to provide ongoing oversight of the nature, extent and quality of the services the Sub-Adviser provides to the Fund and the Sub-Adviser’s compliance with applicable laws and regulations. The Board noted that to assist in the selection and monitoring of the Sub-Adviser, the Adviser has developed an oversight process formulated by its Manager Research & Selection (“MR&S) group, which analyzes both qualitative (such as in-person meetings and telephonic meetings with the Sub-Adviser and research on sub-advisers) and quantitative information (such as performance data, portfolio data and attribution analysis) about the Sub-Adviser and the Fund that it manages. The Board recognized that the MR&S group also typically provides in-person reports to the IRCs at their meetings prior to any Sub-Adviser presentations. In addition, the Board noted that the MR&S group prepares periodic due diligence reports regarding the Sub-Adviser based on on-site visits and information and analysis, which team members use to attempt to gain and maintain an in-depth understanding of the Sub-Adviser’s investment processes and to try to identify issues that may be relevant to the Sub-Adviser’s services to the Fund and/or its performance. The Board also noted that the MR&S group provides written reports on these due diligence analyses to the pertinent IRC. The Board noted the resources that the Adviser has committed to its services as a manager-of-managers, including resources for reporting to the Board and the IRCs to assist them with their assessment of the investment performance of the ING Funds on an on-going basis throughout the year. This includes the appointment of a Chief Investment Risk Officer and his staff, who report directly to the Board and who have developed attribution analyses and other metrics used by the IRCs to analyze the key factors underlying investment performance for the ING Funds.
The Board also considered the techniques that the Adviser has developed to screen and perform due diligence on new sub-advisers if and when the Adviser recommends to the Board a new sub-adviser to manage an ING Fund. The Board noted that, for new, non-ING-affiliated sub-advisers, the MR&S group is responsible for: identifying qualified candidates; analyzing their investment process, personnel and resources; conducting due diligence on the candidates; and selecting the firm to propose as a new sub-adviser, as well as preparing written materials and reports to the committees and the Board as part of the process of approving any new sub-adviser for such Fund.
The Board also considered that in the course of monitoring performance of the Sub-Adviser, the MR&S group has developed, based on guidance from the IRCs, a methodology for comparing performance of the Fund to the Fund’s Morningstar category median,
35
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
Lipper category median, and/or primary benchmark. The Board also recognized that the MR&S group provides the IRCs with regular updates on the Fund and alerts the IRCs to potential issues as they arise. The Board noted that the Adviser regularly monitors performance, personnel, compliance and a myriad of other issues that may arise on a day-to-day basis with regards to the Sub-Adviser and noted that, if issues are identified either through formal or informal processes, they are brought before the IRCs and the Board for consideration and action and the Adviser consistently makes its resources available to the Board and the IRCs to assist with addressing any issues that arise.
The Board noted that the Fund also benefits from the services of the Adviser’s Investment Risk Management Department (the “IRMD”), under the leadership of the Chief Investment Risk Officer, the costs of which are shared by the Fund and the Adviser. The Board noted that the IRMD regularly presents written materials and reports to the IRCs that focus on the investment risks of the Fund. The Board also noted that the IRMD provides the IRCs with analyses that are developed to assist the IRCs in identifying trends in Fund performance and other areas over consecutive periods. The Board noted that the services provided by the IRMD are meant to provide an additional perspective for the benefit of the IRCs, which may vary from the perspective of the MR&S group.
The Board also noted the techniques used by the Adviser to monitor the performance of the Sub-Adviser and the proactive approach that the Adviser, working in cooperation with the IRCs, has taken to advocate or recommend, when it believed appropriate, changes designed to assist in improving the Fund’s performance.
In considering the Fund’s Advisory Contract, the Board also considered the extent of benefits provided to the Fund’s shareholders, beyond advisory services, from being part of the ING Fund complex. This includes, in most cases, the right to exchange or transfer investments, without a sales charge, between the same class of shares of such funds or among ING Funds available on a product platform, and the wide range of ING Funds available for exchange or transfer. The Board also took into account the Adviser’s ongoing efforts to reduce the expenses of the ING Funds through renegotiated arrangements with the ING Funds’ service providers. In addition, the Board considered the efforts of the Adviser and the expenses that it incurred in recent years to help make the ING Fund complex more balanced and efficient by the launch of new investment products and the combinations of similar funds.
Further, the Board received periodic reports showing that the investment policies and restrictions for the Fund were consistently complied with and other periodic reports covering matters such as compliance by Adviser and Sub-Adviser personnel with codes of ethics. The Board considered reports from the Trust’s Chief Compliance Officer (“CCO”) evaluating whether the regulatory compliance systems and procedures of the Adviser and Sub-Adviser are reasonably designed to assure compliance with the federal securities laws, including those related to, among others, late trading and market timing, best execution, fair value pricing, proxy voting and trade allocation practices. The Board also took into account the CCO’s annual and periodic reports and recommendations with respect to service provider compliance programs. In this regard, the Board also considered the policies and procedures developed by the CCO in consultation with the Board’s Compliance Committee that guide the CCO’s compliance oversight function.
The Board reviewed the level of staffing, quality and experience of the Fund’s portfolio management team. The Board took into account the respective resources and reputations of the Adviser and Sub-Adviser, and evaluated the ability of the Adviser and the Sub-Adviser to attract and retain qualified investment advisory personnel. The Board also considered the adequacy of the resources committed to the Fund (and other relevant funds in the ING Fund complex) by the Adviser and Sub-Adviser, and whether those resources are commensurate with the needs of the Fund and are sufficient to sustain appropriate levels of performance and compliance needs. In this regard, the Board considered the financial stability of the Adviser and the Sub-Adviser.
Based on their deliberations and the materials presented to them, the Board concluded that the advisory and related services provided by the Adviser and the Sub-Adviser are appropriate in light of the Fund’s operations, the competitive landscape of the investment company business, and investor needs, and that the nature, extent and quality of the overall services provided by the Adviser and the Sub-Adviser were appropriate.
Fund Performance
In assessing the advisory and sub-advisory relationships for the Fund, the Board placed emphasis on the investment returns of the Fund. While the Board considered the performance reports and discussions with portfolio managers at Board and committee meetings during the year, particular attention in assessing performance was given to the FACT sheets furnished in connection with the renewal process. The
36
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
FACT sheets prepared for the Fund included its investment performance compared to the Fund’s Morningstar category median, Lipper category median and/or primary benchmark. The FACT sheets performance data was as of June 30, 2012. In addition, the Board also considered at its November 29, 2012 meeting certain additional data regarding performance and Fund asset levels as of September 30 and October 31, 2012.
The Fund’s performance was compared to its Morningstar category median and average, as well as its primary benchmark, a broad-based securities market index that appears in the Fund’s prospectus. With respect to Morningstar quintile rankings, the first quintile represents the highest (best) performance and the fifth quintile represents the lowest performance. The Fund’s management fee and expense ratio were compared to the fees and expense ratios of the funds in its Selected Peer Group.
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the Fund, the Board considered that, based on performance data for the periods ended June 30, 2012: (1) the Fund outperformed its Morningstar category median for the most recent calendar quarter and one-year period, but underperformed for the year-to-date period; (2) the Fund outperformed its primary benchmark for the most recent calendar quarter and one-year period, but underperformed for the year-to-date period; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the one-year period, and the third quintile for the most recent calendar quarter and year-to-date period.
Economies of Scale
When evaluating the reasonableness of advisory fee rates, the Board also considered whether economies of scale likely will be realized by the Adviser and Sub-Adviser as the Fund grows larger and the extent to which any such economies are reflected in contractual fee rates. In this regard, the Board noted any breakpoints in advisory fee schedules that will result in a lower advisory fee rate when the Fund achieves sufficient asset levels to receive a breakpoint discount. In the case of sub-advisory fees, the Board considered that breakpoints would inure to the benefit of the Adviser, except to the extent that there are corresponding advisory fee breakpoints or waivers. The Board also considered that although the Fund does not have advisory fee breakpoints, it does have fee waiver or expense reimbursement arrangements. In this connection, the Board considered the extent to which economies of scale could be realized through such fee waivers, expense reimbursements or other expense reductions. In evaluating fee breakpoint arrangements and economies of scale, the Independent Trustees also considered prior periodic management reports, industry information on this topic and the Fund’s investment performance.
Information Regarding Services to Other Clients
The Board requested and considered information regarding the nature of services and fee rates offered by the Adviser and Sub-Adviser to other clients, including other registered investment companies and relevant institutional accounts. When fee rates offered to other clients differed materially from those charged to the Fund, the Board considered any underlying rationale provided by the Adviser or the Sub-Adviser for these differences. The Board also noted that the fee rates charged to the Fund and other institutional clients of the Adviser or Sub-Adviser (including other investment companies) may differ materially due to, among other reasons: differences in services; different regulatory requirements associated with registered investment companies, such as the Fund, as compared to non-registered investment company clients; market differences in fee rates that existed when the Fund first was organized; differences in the original sponsors of the Fund that now are managed by the Adviser; investment capacity constraints that existed when certain contracts were first agreed upon or that might exist at present; and different pricing structures that are necessary to be competitive in different marketing channels.
Fee Rates and Profitability
The Board reviewed and considered the contractual investment advisory fee rate, combined with the administrative fee rate, payable by the Fund to the Adviser. The Board also considered the contractual sub-advisory fee rate payable by the Adviser to the Sub-Adviser for sub-advisory services for the Fund, including the portion of the contractual advisory fees that are paid to the Sub-Adviser, as compared to the portion retained by the Adviser. In addition, the Board considered fee waivers and expense limitations applicable to the fees payable by the Fund.
The Board considered: (1) the fee structure of the Fund as it relates to the services provided under the contracts; and (2) the potential fall-out benefits to the Adviser and the Sub-Adviser and their respective affiliates from their association with the Fund. For the Fund, the Board separately determined that the fee rate payable to the Adviser and the fee rate payable to the Sub-Adviser are reasonable for the services that each performs, which were considered in light of the
37
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
nature, extent and quality of the services that each has performed and is expected to perform.
In considering the fee rates payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a level fee rate that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its Selected Peer Group, including that: (a) the management fee rate (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fee rates of the funds in its Selected Peer Group; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its Selected Peer Group.
For the Fund, the Board considered information on revenues, costs and profits realized by the Adviser and the Sub-Adviser, which was prepared by Management in accordance with the allocation methodology (including related assumptions) specified in the 15(c) Methodology Guide. In analyzing the profitability of the Adviser in connection with its services to the Fund, the Board took into account the sub-advisory fee rate payable by the Adviser to the Sub-Adviser. In addition, the Board considered information that it requested and was provided by Management with respect to the profitability of service providers affiliated with the Adviser. In this regard, the Board also noted that the Adviser (and not the Fund) pays the sub-advisory fees earned by the Sub-Adviser.
Although the 15(c) Methodology Guide establishes certain standards for profit calculation, the Board recognized that profitability analysis on a client-by-client basis is not an exact science and there is no uniform methodology within the asset management industry for determining profitability for this purpose. In this context, the Board realized that Management’s calculations regarding its costs incurred in establishing the infrastructure necessary for the Fund’s operations may not be fully reflected in the expenses allocated to the Fund in determining profitability, and that the information presented may not portray all of the costs borne by the Adviser and Management or capture their entrepreneurial risk associated with offering and managing a mutual fund complex in the current regulatory and market environment. In addition, the Board recognized that the use of different methodologies for purposes of calculating profit data can give rise to dramatically different profit and loss results.
In making its determinations, the Board based its conclusions as to the reasonableness of the advisory and sub-advisory fee rates of the Adviser and Sub-Adviser primarily on the factors described for the Fund herein. At the request of the Board, the Adviser has from time to time agreed to implement remedial actions regarding certain ING Funds. These remedial actions have included, among others: reductions in effective fee rates through expense limitation or fee waiver arrangements or through contractual fee rate revisions, such as the addition of the fee schedule breakpoints at higher asset levels; changes in sub-adviser or portfolio managers; and strategy modifications.
Conclusion
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2013. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY CONTRACTS IN CONNECTION WITH SEPARATION PLAN
ING Groep’s base case to achieve the Separation Plan is through an initial public offering of ING U.S. (the “IPO”) followed by the divestment of ING Groep’s remaining ownership interest over time through one or more additional public offerings of ING U.S. stock, or, possibly, through one or more privately negotiated sales of the stock. (While the Separation Plan is the base case, it is possible that the Separation Plan may be achieved by means of a sale to a single buyer or group of buyers.)
The Fund is subject to the 1940 Act, which provides that any investment advisory agreement, including any sub-advisory agreement, must terminate automatically upon its “assignment.” As used in the 1940 Act, the term assignment includes any transfer of a controlling block of outstanding voting securities of an adviser or the parent company of an adviser. Such a transfer is often referred to as a “Change of Control Event.” It is
38
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
anticipated that one or more of the transactions contemplated by the Separation Plan would be deemed a Change of Control Event.
As described above, the Separation Plan contemplates one or more transactions, commencing with the IPO, that are expected to result ultimately in a direct or indirect “Change of Control Event” for the Adviser and Sub-Adviser, which in turn would result in the automatic termination of the current advisory agreement and current sub-advisory agreement (collectively, “the Current Agreements”). The decisions by the Board, including a majority of the Independent Trustees, to approve a proposed new advisory agreement and a proposed new sub-advisory agreement for the Fund (collectively, the “Proposed Agreements”) were based on a determination by the Board that it would be in the best interests of the shareholders of the Fund for the Adviser and Sub-Adviser to continue providing investment advisory, sub-advisory, and related services for the Fund, without interruption, as consummation of the Separation Plan proceeds.
The Board was aware that the IPO may not result immediately in a Change of Control Event, but also recognized that the Separation Plan contemplates a series of transactions that are expected to result in one or more Change of Control Events in the future. The Board concluded that approval by shareholders at this time of both the Proposed Agreements and future agreements that may become effective upon certain Change of Control Events in the future will permit the Fund to benefit from the continuation of services by the Adviser, Sub-Adviser and their affiliates throughout the Separation Plan without the need for multiple shareholder meetings. The Board was informed by the Adviser and its counsel that the Adviser is seeking to obtain regulatory assurances that the staff of the SEC would not object to approval of future agreements by shareholders at this time.
Prior to its approval of the Proposed Agreements, the Board reviewed, among other matters, the quality, extent, and nature of the services currently being provided by the Adviser and Sub-Adviser under the Current Agreements and to be provided under the Proposed Agreements. A substantial portion of this review was conducted as part of, and in conjunction with, the Board’s annual reviews of the Current Agreements, which were most recently approved for continuation at an in-person meeting of the Board held on November 29, 2012. During the review process that led to its approval of the Current Agreements on November 29, 2012, the Board was aware that it likely would be asked in the very near future to consider approval of the Proposed Agreements.
On November 29, 2012, as applicable, the Board concluded, in light of all factors it considered, including undertakings by the Adviser relating to certain follow-up actions, that the approval of the Current Agreements was in the best interests of the Fund and its shareholders and that the fee rates set forth in the Current Agreements were fair and reasonable. Among other factors, the Board considered: (1) the nature, extent and quality of services provided and to be provided under the Current Agreements; (2) the extent to which economies of scale are reflected in fee rate schedules under the Current Agreements; (3) the existence of any “fall-out” benefits to the Adviser, Sub-Adviser and their affiliates; (4) a comparison of fee rates, expense ratios, and investment performance to those of similar funds; and (5) the costs incurred and profits realized by the Adviser, Sub-Adviser and their affiliates with respect to their services to the Fund. A further description of the process followed by the Board in approving the continuation of the Current Agreements on November 29, 2012, including the information reviewed, certain material factors considered and certain related conclusions reached, is set forth above under the section titled “BOARD CONSIDERATION AND RE-APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY CONTRACTS.”
In connection with its approval of the Proposed Agreements, on January 10, 2013, the Board considered its conclusions in connection with its November 29, 2012 approvals of those Current Agreements that were in effect on that date, including the Board’s general satisfaction with the nature, extent and quality of services being provided and, as applicable, actions taken or to be taken in certain instances to improve the relationship between the costs and the quality of services being provided. Also in connection with its January 10, 2013 approvals of the Proposed Agreements, the Board considered a representation made to it on that date by the Adviser’s president that there were no additional developments not already disclosed to the Board since November 29, 2012 that would be a material consideration to the Board in connection with its consideration of the Proposed Agreements.
As a result, in addition to the information identified above, in considering the Proposed Agreements, the Board focused its review on, and requested and evaluated other information relating to, the potential impact of implementing the Separation Plan on the operations, personnel, organizational structure, capitalization, and financial and other resources of the
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ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
Adviser and its affiliates that render investment sub-advisory, administrative, distribution, compliance and other services to the Fund. When making its decisions on January 10, 2013, the Board took into account that, commencing in early 2011, it had posed ongoing inquiries to, and received regular updates from, management relating to the Separation Plan.
Between November 2012 and January 2013, the Board and its committees accelerated their due diligence processes by engaging in an extensive review and analysis of additional information regarding the proposed IPO and related matters. This analysis focused on, among other matters, the expectations for continuity and stability of ING U.S. throughout implementation of the Separation Plan and thereafter. In this connection, the Board considered that the Separation Plan is being implemented as a result of legal and regulatory commitments by ING Groep, that the Board generally has been satisfied with the nature, extent and quality of the services provided to the Fund, including investment advisory, administrative and support services, and that it would be in the Fund’s best interests to maintain continuity and stability of the services currently being provided. The Board carefully considered ING U.S.’s anticipated future plans related to capitalization, operational matters, and the retention of current levels of staffing and related compensation structures, as well as the desires of its senior executives and key employees and the importance of the investment management operations within the ING U.S. business structure going forward.
Among other steps in its nearly two-year due diligence process, which accelerated upon ING U.S.’s Form S-1 filing, the following actions were taken and considered by or on behalf of the Board:
| 1. | | The Independent Trustees solicited and received ongoing advice regarding the Board’s legal duties from K&L Gates, legal counsel for such Board members, which law firm has extensive experience regarding such matters. |
| 2. | | The Independent Trustees established an Ad Hoc IPO Transaction Committee (the “IPO Committee”), consisting exclusively of Independent Trustees, to help oversee, coordinate, and perform portions of the Board’s due diligence activities. In this connection, the IPO Committee considered, among other matters, relevant legal guidance and the processes followed by certain other investment company boards of directors or trustees when they approved contracts in connection with Change of Control events. |
| 3. | | The Independent Trustees, with assistance from K&L Gates, prepared written inquiries to the Adviser and its affiliates regarding the IPO, including details regarding ING U.S.’s anticipated business plan for continuing operations after the IPO and potential Change of Control Events. |
| 4. | | The Board received and evaluated written responses from the Adviser and its affiliates pursuant to inquiries made on the Board’s behalf. These evaluations were conducted through a series of separate meetings by the Board’s Audit Committee, Compliance Committee, Contracts Committee, Domestic Equity Funds Investment Review Committee, International/Balanced/Fixed Income Funds Investment Review Committee, Nominating and Governance Committee, and IPO Committee (collectively, the “Committees”), and by the Independent Trustees (which, at times, included one or both Board members who are not Independent Trustees). With respect to services to be rendered to the Fund by ING U.S. during implementation of the Separation Plan, each Committee evaluated matters relating to those services typically overseen by such Committee (and, in the case of the IPO Committee, relevant matters not otherwise assigned to a standing Committee). Future references herein to actions taken by the Board or the Independent Trustees may include, in some instances, actions taken by one or more of the Committees. |
| 5. | | The Board requested and participated in a series of in-person and/or telephonic meetings involving presentations from senior management personnel at ING U.S. (including its Chief Executive Officer, Chief Operating Officer, Chief Risk Officer, Head of Corporate Development, Head of Proprietary Investments, and the heads of each proposed primary operating unit of ING U.S.), as well as from senior management of the Adviser and its affiliates, including senior human resources personnel, senior investment personnel, and senior compliance personnel at the Sub-Adviser. The Board also requested and had such meetings with the Fund’s Chief Compliance Officer and Chief Investment Risk Officer who, as a matter of course, report directly to the Board or its Committees. |
| 6. | | The Board received and reviewed the preliminary Form S-1 that contained extensive information relating to, among other matters, ING U.S.’s anticipated business plans and financial structure. In this connection, the Board considered, among other matters: the anticipated arrangements between ING Groep and ING U.S. over the course |
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ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
| | of the Separation Plan; the anticipated use of potential proceeds of the capital that would be raised through the Form S-1 offering (including that portion of potential proceeds that may be retained by ING Groep and that portion that may be dedicated to the capitalization and operations of ING U.S., including its asset management operations); the potential short-term and long-term financial consequences to ING U.S. of the closed book of variable annuity business that would be maintained by ING U.S.-affiliated insurance companies; and other information provided by the Adviser and its affiliates. |
| 7. | | K&L Gates retained Grail Partners LLC (“Grail”), an independent investment banking firm with extensive experience relating to business operations such as those to be conducted by ING U.S., in order to help K&L Gates evaluate and advise the Board with respect to, among other matters, details of ING U.S.’s anticipated business plan and financial capitalization as set forth in its Form S-1 and related information provided by the Adviser and its affiliates, including the potential implications to the Adviser and its non-insurance affiliates of insurance regulations and related capitalization matters. The Independent Trustees or IPO Committee members attended certain in-person and telephone conference call meetings at which Grail rendered advice to K&L Gates regarding these matters and responded to questions. |
| 8. | | The Independent Trustees, the Board, and many of its Committees held in-person meetings on November 27, 28, and 29, 2012 during which, among other actions, they evaluated the responsive due diligence information provided to date by the Adviser and its affiliates, and considered input from K&L Gates, Grail, and others regarding the Form S-1. At the conclusion of these meetings, the Independent Trustees and the Committees posed to the Adviser and its affiliates a series of follow-up information requests. |
| 9. | | Among the follow-up actions arising from the November 27, 28, and 29 meetings, the Independent Trustees requested and received written assurances that the Adviser and its affiliates: are committed to maintaining appropriate levels of overall staffing, ongoing resources and service quality; and throughout the time period during which the Separation Plan is implemented, will notify and consult with the Board in advance if management proposes to take certain actions with respect to these matters. The Board considered that such services include, but are not limited to, portfolio management services, administrative services, and regulatory compliance services. In this regard, the Board considered representations by the Adviser and its affiliates that their separation from ING Groep as contemplated by the Separation Plan will not lead to a reduction in the quality or scope of these and other services provided by those firms to the Fund. The Board also considered that the importance of the asset management operations to the overall success of ING U.S., as described by the Form S-1 and during presentations by senior ING U.S. management personnel, could provide a strong incentive to ING U.S. to provide appropriate resource allocations to support those asset management operations. |
| 10. | | The Board considered representations by the Adviser and its affiliates that approval of the Proposed Agreements would be necessary for the Fund to continue receiving investment management services from the Adviser and Sub-Adviser following the Change of Control Events contemplated by the Separation Plan. |
| 11. | | The Board considered representations by the Adviser and its affiliates, as well as related supporting documentation, indicating that the Proposed Agreements, including the fees payable thereunder, are substantially similar to and, in any event, are no less favorable to the Fund than, the terms of the corresponding Current Agreements. |
| 12. | | The Board considered that, to the extent that the Proposed Agreements do have changes, those changes are designed to benefit shareholders and/or to provide management, subject to Board supervision, with greater flexibility to manage the Fund in a manner consistent with stated investment objectives. In this connection, the Board considered, among other matters, the Adviser’s representation that no material changes would be made to the Proposed Agreements, as compared to the Current Agreements, with respect to the material contractual terms that were previously negotiated under which the Fund and its Adviser and Sub-Adviser currently operate, including contractual provisions relating to fees and expenses. |
| 13. | | The Board considered representations by the Adviser and its affiliates, including senior investment management personnel, as well as related supporting documentation, indicating that: (a) the Adviser and Sub-Adviser can be expected to provide services of the same nature, |
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ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
| | extent, and quality under the Proposed Agreements as are provided thereby under the Current Agreements; and (b) the Separation Plan is not expected to result in any changes to: (i) the management of the Fund, including the continuity of the Fund’s portfolio managers and other personnel responsible for the management operations of the Fund; or (ii) the investment objective of or the principal investment strategies used to manage any of the Fund. |
| 14. | | The Board considered the steps by the Adviser and its affiliates that have been taken and are planned to be taken to retain the employment of key personnel, including incentive compensation plan arrangements, as well as the overall positive indications by many such personnel regarding the opportunities presented by the Separation Plan to create and grow an investment management operation that is independent from other ING Groep banking and insurance operations that will not be part of ING U.S. |
| 15. | | The Board considered that the Adviser and its affiliates have agreed to bear all expenses associated with obtaining shareholder approval of the Proposed Agreements. |
| 16. | | The Board considered ING U.S.’s preliminary “branding” plans regarding the future name of its asset management operations, as well as its anticipated ability to continue to use the “ING” brand name for such operations for a period of time following the IPO. |
| 17. | | The Board considered the advice provided by Dechert LLP, legal counsel to the Fund and the Adviser, with respect to the Proposed Agreements (including advice relating to the process and timing of seeking shareholder approval of the Proposed Agreements, and whether shareholder approvals would be required in connection with any future aspects of the Separation Plan following the IPO) and regarding the Board’s role and responsibilities with respect to ING Groep’s restructuring. |
| 18. | | The Board considered the legal obligation of ING Groep under the Separation Plan to divest its ownership interest in ING U.S., as well as certain potential advantages and disadvantages to shareholders of the Fund of this divestiture, and certain potential advantages and disadvantages of alternative divestiture actions that ING Groep might be forced to take if the Proposed Agreements are not approved by the Board or by shareholders of the Fund. |
| 19. | | The Board considered peer group and benchmark investment performance comparison data relating to the Fund that was more current than related comparison data considered by it in connection with the November 29, 2012 approvals of the Current Agreements. |
| 20. | | The Board considered actions taken by the Adviser subsequent to the November 29, 2012 approvals of the Current Agreements with respect to certain ING Funds in response to requests made by the Board in connection with those approvals. |
| 21. | | The Board considered the potential benefits to be realized by the Adviser and its affiliates as a result of the Proposed Agreements. |
| 22. | | The Board considered that, if shareholders approve the Proposed Agreements, the Board currently expects to continue to conduct an annual contracts review process consistent with the process it would have conducted had the Current Agreements continued in effect and not been replaced by the Proposed Agreements, notwithstanding the two-year initial term set forth in the Proposed Agreements. For example, if the Proposed Agreements are approved by shareholders in 2013, the Board would not legally be required to review or renew those contracts until 2015. However, the Board currently intends to conduct annual reviews of such contracts in 2013 and 2014, and ING has consented to this process. Thus, the Board emphasized that it would be able to, and intends to, monitor on a regular basis the ability of the Adviser and its affiliates to comply with their undertakings to the Board and to monitor on an ongoing basis the quality of services to, and expenses of, the Fund. In addition, the Board considered that, under the Proposed Agreements, it will continue to have the authority, should the need arise in its view, to terminate any of the Proposed Agreements without penalty upon 60 days’ notice. |
Based on the foregoing and other relevant considerations, at a meeting of the Board held on January 10, 2013, the Board, including a majority of the Independent Trustees, voted to approve the Proposed Agreements and to recommend approval of the Proposed Agreements by shareholders of the Fund. In this connection, the Board concluded that, in light of all factors considered, the terms of the Proposed Agreements, including fee rates, were fair and reasonable, and that it would be in the best interests of shareholders of the Fund to approve the Proposed Agreements so as to enable there to be a continuation without interruption of the current services being
42
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
provided by the current service providers pursuant to the Current Agreements. In this connection, the Board noted that no one factor was determinative of its decisions which, instead, were premised upon the totality of factors considered. In this connection, the Board also noted that different Board members likely placed emphasis on different factors in reaching their individual conclusions to vote in favor of the Proposed Agreements and to recommend approval of the Proposed Agreements to shareholders.
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Investment Adviser
ING Investments, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Administrator
ING Funds Services, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Distributor
ING Investments Distributor, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Transfer Agent
BNY Mellon Investment Servicing (U.S.) Inc.
301 Bellevue Parkway
Wilmington, Delaware 19809
Independent Registered Public
Accounting Firm
KPMG LLP
Two Financial Center
60 South Street
Boston, Massachusetts 02111
Custodian
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, Missouri 64105
Legal Counsel
Dechert LLP
1900 K Street, N.W.
Washington, D.C. 20006
Toll-Free Shareholder Information
Call us from 9:00 a.m. to 7:00 p.m. Eastern time on any business day for account or other information, at (800) 992-0180
For more complete information, or to obtain a prospectus on any ING Fund, please call your Investment Professional or ING Investments Distributor, LLC at (800) 992-0180 or log on to www.inginvestment.com. The prospectus should be read carefully before investing. Consider the fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this information and other information about the fund.
AR-UFR (0313-052413)
Item 2. Code of Ethics.
As of the end of the period covered by this report, Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to the Registrant’s principal executive officer and principal financial officer. There were no amendments to the Code during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period covered by this report. The code of ethics is filed herewith pursuant to Item 10(a)(1), Exhibit 99.CODE ETH.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that J. Michael Early, Peter S. Drotch and Colleen Baldwin are an audit committee financial experts, as defined in Item 3 of Form N-CSR. Mr. Early, Mr. Drotch and Ms. Baldwin are “independent” for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
| (a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by KPMG LLP (“KPMG”), the principal accountant for the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $120,420 for year ended March 31, 2013 and $96,300 for year ended March 31, 2012. |
| (b) | Audit-Related Fees: The aggregate fees billed in the last fiscal year for assurance and related services by KPMG that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $9,600 for the year ended March 31, 2013 and $9,600 for year ended March 31, 2012. |
| (c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by KPMG for tax compliance, tax advice, and tax planning were $25,894 in the year ended March 31, 2013 and $36,957 in the year ended March 31, 2012. Such services included review of excise distribution calculations (if applicable), preparation of the Funds’ federal, state and excise tax returns, tax services related to mergers and routine consulting. |
| (d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for all other fees were $2,500 for the year ended March 31, 2013 and $0 for the year ended March 31, 2012. |
| (e) (1) | Audit Committee Pre-Approval Policies and Procedures |
AUDIT AND NON-AUDIT SERVICES
PRE-APPROVAL POLICY
I. Statement of Principles
Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Board of Directors or Trustees (the “Committee”) of the ING Funds (each a “Fund,” collectively, the “Funds”) set out on Exhibit A to this Audit and Non-Audit Services Pre-Approval Policy (“Policy”) is responsible for the oversight of the work of the Funds’ independent auditors. As part of its responsibilities, the Committee must pre-approve the audit and non-audit services performed by the auditors in order to assure that the provision of these services does not impair the auditors’ independence from the Funds. The Committee has adopted, and the Board has ratified, this Policy, which sets out the procedures and conditions under which the services of the independent auditors may be pre-approved.
Under Securities and Exchange Commission (“SEC”) rules promulgated in accordance with the Act, the Funds may establish two different approaches to pre-approving audit and non-audit services. The Committee may approve services without consideration of specific case-by-case services (“general pre-approval”) or it may pre-approve specific services (“specific pre-approval”). The Committee believes that the combination of these approaches contemplated in this Policy results in an effective and efficient method for pre-approving audit and non-audit services to be performed by the Funds’ independent auditors. Under this Policy, services that are not of a type that may receive general pre-approval require specific pre-approval by the Committee. Any proposed services that exceed pre-approved cost levels or budgeted amounts will also require the Committee’s specific pre-approval.
For both types of approval, the Committee considers whether the subject services are consistent with the SEC’s rules on auditor independence and that such services are compatible with maintaining the auditors independence. The Committee also considers whether a particular audit firm is in the best position to provide effective and efficient services to the Funds. Reasons that the auditors are in the best position include the auditors’ familiarity with the Funds’ business, personnel, culture, accounting systems, risk profile, and other factors, and whether the services will enhance the Funds’ ability to manage and control risk or improve audit quality. Such factors will be considered as a whole, with no one factor being determinative.
The appendices attached to this Policy describe the audit, audit-related, tax-related, and other services that have the Committee’s general pre-approval. For any service that has been approved through general pre-approval, the general pre-approval will remain in place for a period 12 months from the date of pre-approval, unless the Committee determines that a different period is appropriate. The Committee will annually review and pre-approve the services that may be provided by the independent auditors without specific pre-approval. The Committee will revise the list of services subject to general pre-approval as appropriate. This Policy does not serve as a delegation to Fund management of the Committee’s duty to pre-approve services performed by the Funds’ independent auditors.
II. Audit Services
The annual audit services engagement terms and fees are subject to the Committee’s specific pre-approval. Audit services are those services that are normally provided by auditors in connection with statutory and regulatory filings or engagements or those that generally only independent auditors can reasonably provide. They include the Funds’ annual financial statement audit and procedures that the independent auditors must perform in order to form an opinion on the Funds’ financial statements (e.g., information systems and procedural reviews and testing). The Committee will monitor the audit services engagement and approve any changes in terms, conditions or fees deemed by the Committee to be necessary or appropriate.
The Committee may grant general pre-approval to other audit services, such as statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or issued in connection with securities offerings.
The Committee has pre-approved the audit services listed on Appendix A. The Committee must specifically approve all audit services not listed on Appendix A.
III. Audit-related Services
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or the review of the Funds’ financial statements or are traditionally performed by the independent auditors. The Committee believes that the provision of audit-related services will not impair the independent auditors’ independence, and therefore may grant pre-approval to audit-related services. Audit-related services include accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures relating to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Form N-SAR or Form N-CSR.
The Committee has pre-approved the audit-related services listed on Appendix B. The Committee must specifically approve all audit-related services not listed on Appendix B.
IV. Tax Services
The Committee believes the independent auditors can provide tax services to the Funds, including tax compliance, tax planning, and tax advice, without compromising the auditors’ independence. Therefore, the Committee may grant general pre-approval with respect to tax services historically provided by the Funds’ independent auditors that do not, in the Committee’s view, impair auditor independence and that are consistent with the SEC’s rules on auditor independence.
The Committee will not grant pre-approval if the independent auditors initially recommends a transaction the sole business purpose of which is tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Committee may consult
2
outside counsel to determine that tax planning and reporting positions are consistent with this Policy.
The Committee has pre-approved the tax-related services listed on Appendix C. The Committee must specifically approve all tax-related services not listed on Appendix C.
V. Other Services
The Committee believes it may grant approval of non-audit services that are permissible services for independent auditors to a Fund. The Committee has determined to grant general pre-approval to other services that it believes are routine and recurring, do not impair auditor independence, and are consistent with SEC rules on auditor independence.
The Committee has pre-approved the non-audit services listed on Appendix D. The Committee must specifically approve all non-audit services not listed on Appendix D.
A list of the SEC’s prohibited non-audit services is attached to this Policy as Appendix E. The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these impermissible services and the applicability of exceptions to certain of the SEC’s prohibitions.
VI. Pre-approval of Fee levels and Budgeted Amounts
The Committee will annually establish pre-approval fee levels or budgeted amounts for audit, audit-related, tax and non-audit services to be provided to the Funds by the independent auditors. Any proposed services exceeding these levels or amounts require the Committee’s specific pre-approval. The Committee considers fees for audit and non-audit services when deciding whether to pre-approve services. The Committee may determine, for a pre-approval period of 12 months, the appropriate ratio between the total amount of fees for the Fund’s audit, audit-related, and tax services (including fees for services provided to Fund affiliates that are subject to pre-approval), and the total amount of fees for certain permissible non-audit services for the Fund classified as other services (including any such services provided to Fund affiliates that are subject to pre-approval).
VII. Procedures
Requests or applications for services to be provided by the independent auditors will be submitted to management. If management determines that the services do not fall within those services generally pre-approved by the Committee and set out in the appendices to these procedures, management will submit the services to the Committee or its delagee. Any such submission will include a detailed description of the services to be rendered. Notwithstanding this paragraph, the Committee will, on a quarterly basis, receive from the independent auditors a list of services provided for the previous calendar quarter on a cumulative basis by the auditors during the Pre-Approval Period.
3
VIII. Delegation
The Committee may delegate pre-approval authority to one or more of the Committee’s members. Any member or members to whom such pre-approval authority is delegated must report any pre-approval decisions, including any pre-approved services, to the Committee at its next scheduled meeting. The Committee will identify any member to whom pre-approval authority is delegated in writing. The member will retain such authority for a period of 12 months from the date of pre-approval unless the Committee determines that a different period is appropriate. The period of delegated authority may be terminated by the Committee or at the option of the member.
IX. Additional Requirements
The Committee will take any measures the Committee deems necessary or appropriate to oversee the work of the independent auditors and to assure the auditors’ independence from the Funds. This may include reviewing a formal written statement from the independent auditors delineating all relationships between the auditors and the Funds, consistent with Independence Standards Board No. 1, and discussing with the auditors their methods and procedures for ensuring independence.
Effective April 23, 2008, the KPMG LLP (“KPMG”) audit team for the ING Funds accepted the global responsibility for monitoring the auditor independence for KPMG relative to the ING Funds. Using a proprietary system called Sentinel, the audit team is able to identify and manage potential conflicts of interest across the member firms of the KPMG International Network and prevent the provision of prohibited services to the ING entities that would impair KPMG independence with the respect to the ING Funds. In addition to receiving pre-approval from the ING Funds Audit Committee for services provided to the ING Funds and for services for ING entities in the Investment Company Complex, the audit team has developed a process for periodic notification via email to the ING Funds’ Audit Committee Chairpersons regarding requests to provide services to ING Groep NV and its affiliates from KPMG offices worldwide. Additionally, KPMG provides a quarterly summary of the fees for services that have commenced for ING Groep NV and Affiliates at each Audit Committee Meeting.
4
Last Approved: November 29, 2012
5
Appendix A
Pre-Approved Audit Services for the Pre-Approval Period January 1, 2013 through December 31, 2013
| Service |
| | The Fund(s) | Fee Range |
| Statutory audits or financial audits (including tax services associated with audit services) | √ | As presented to Audit Committee1 |
| Services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., consents), and assistance in responding to SEC comment letters. | √ | Not to exceed $9,750 per filing |
| Consultations by Fund management with respect to accounting or disclosure treatment of transactions or events and/or the actual or potential effect of final or proposed rules, standards or interpretations by the SEC, Financial Accounting Standards Board, or other regulatory or standard setting bodies. | √ | Not to exceed $8,000 during the Pre-Approval Period |
| Seed capital audit and related review and issuance of consent on the N-2 registration statement | √ | Not to exceed $13,000 per audit |
__________
| 1 | For new Funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing Funds, pro-rated in accordance with inception dates as provided in the auditors’ Proposal or any Engagement Letter covering the period at issue. Fees in the Engagement Letter will be controlling. |
6
Appendix B
Pre-Approved Audit-Related Services for the Pre-Approval Period January 1, 2013 through December 31, 2013
| Service |
| | The Fund(s) | Fund Affiliates | Fee Range |
| Services related to Fund mergers (Excludes tax services - See Appendix C for tax services associated with Fund mergers) | √ | √ | Not to exceed $10,000 per merger |
| Consultations by Fund management with respect to accounting or disclosure treatment of transactions or events and/or the actual or potential effect of final or proposed rules, standards or interpretations by the SEC, Financial Accounting Standards Board, or other regulatory or standard setting bodies. [Note: Under SEC rules some consultations may be “audit” services and others may be “audit-related” services.] | √ | | Not to exceed $5,000 per occurrence during the Pre-Approval Period |
| Review of the Funds’ semi-annual and quarterly financial statements | √ | | Not to exceed $2,400 per set of financial statements per fund |
| Reports to regulatory or government agencies related to the annual engagement | √ | | Up to $5,000 per occurrence during the Pre-Approval Period |
| Regulatory compliance assistance | √ | √ | Not to exceed $5,000 per quarter |
| Training courses | | √ | Not to exceed $2,000 per course |
| For Prime Rate Trust, agreed upon procedures for quarterly reports to rating agencies | √ | | Not to exceed $9,450 per quarter |
| | | | |
7
Appendix C
Pre-Approved Tax Services for the Pre-Approval Period January 1, 2013 through December 31, 2013
| Service |
| | The Fund(s) | Fund Affiliates | Fee Range |
| Preparation of federal and state income tax returns and federal excise tax returns for the Funds including assistance and review with excise tax distributions | √ | | As presented to Audit Committee2 |
| Review of IRC Sections 851(b) and 817(h) diversification testing on a real-time basis | √ | | As presented to Audit Committee2 |
| Assistance and advice regarding year-end reporting for 1099’s | √ | | As presented to Audit Committee2 |
| Tax assistance and advice regarding statutory, regulatory or administrative developments | √ | √ | Not to exceed $5,000 for the Funds or for the Funds’ investment adviser during the Pre-Approval Period |
__________
| 2 | For new Funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing Funds, pro-rated in accordance with inception dates as provided in the auditors’ Proposal or any Engagement Letter covering the period at issue. Fees in the Engagement Letter will be controlling. |
8
Appendix C, continued
| Service |
| | The Fund(s) | Fund Affiliates | Fee Range |
| Tax training courses | | √ | Not to exceed $2,000 per course during the Pre-Approval Period |
| Tax services associated with Fund mergers | √ | √ | Not to exceed $4,000 per fund per merger during the Pre-Approval Period |
| Other tax-related assistance and consultation, including, without limitation, assistance in evaluating derivative financial instruments and international tax issues, qualification and distribution issues, and similar routine tax consultations. | √ | | Not to exceed $120,000 during the Pre-Approval Period |
9
Appendix D
Pre-Approved Other Services for the Pre-Approval Period January 1, 2013 through December 31, 2013
| Service |
| | The Fund(s) | Fund Affiliates | Fee Range |
| Agreed-upon procedures for Class B share 12b-1 programs | | √ | Not to exceed $60,000 during the Pre-Approval Period |
Security counts performed pursuant to Rule 17f-2 of the 1940 Act (i.e., counts for Funds holding securities with affiliated sub-custodians) Cost to be borne 50% by the Funds and 50% by ING Investments, LLC. | √ | √ | Not to exceed $5,000 per Fund during the Pre-Approval Period |
| Agreed upon procedures for 15 (c) FACT Books | √ | | Not to exceed $35,000 during the Pre-Approval Period |
10
Appendix E
Prohibited Non-Audit Services
Dated: January 1, 2013 to December 31, 2013
| · | Bookkeeping or other services related to the accounting records or financial statements of the Funds |
| · | Financial information systems design and implementation |
| · | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports |
| · | Internal audit outsourcing services |
| · | Broker-dealer, investment adviser, or investment banking services |
| · | Expert services unrelated to the audit |
| · | Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible |
11
EXHIBIT A
ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME FUND
ING EMERGING MARKETS LOCAL BOND FUND
ING EMERING MARKETS HIGH DIVIDEND EQUITY FUND
ING EQUITY TRUST
ING FUNDS TRUST
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND
ING GLOBAL STRATEGIC INCOME FUND
ING INFRASTRUCTURE, INDUSTRIALS, AND MATERIALS FUND
ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME FUND
ING INVESTORS TRUST
ING MAYFLOWER TRUST
ING MUTUAL FUNDS
ING PARTNERS, INC.
ING PRIME RATE TRUST
ING RISK MANAGED NATURAL RESOURCES FUNDING INVESTORS TRUST
ING SENIOR INCOME FUND
ING SEPARATE PORTFOLIOS TRUST
ING VARIABLE INSURANCE TRUST
ING VARIABLE PRODUCTS TRUST
| | |
| |
| (e)(2) | | Percentage of services referred to in (4)(b)-(4)(d) that were approved by the audit committee |
| |
| | 100% of the services were approved by the audit committee. |
| |
| (f) | | Percentage of hours expended attributable to work performed by other than full time employees of KPMG if greater than 50% |
| |
| | Not applicable |
| |
| (g) | | Non-Audit Fees: The non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were $496,971 for year ended March 31, 2013 and $1,214,165 for fiscal year ended March 31, 2012. |
| |
| (h) | | Principal Accountants Independence: the Registrant’s Audit committee has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2.01(c)(7)(ii) of Regulation S-X is compatible with maintaining KPMG’s independence. |
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Summary schedule or complete schedule of investments, if applicable, is included as part of the report to shareholders filed under Item 1 of this Form.
13
Report of Independent Registered Public Accounting Firm
The Shareholders and Board of Trustees
ING Funds Trust
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the statements of assets and liabilities, including the summary portfolios of investments, of ING GNMA Income Fund, ING High Yield Bond Fund, ING Intermediate Bond Fund, ING Short Term Bond Fund, and ING Strategic Income Fund, each a series of ING Funds Trust, as of March 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended and have issued our unqualified report thereon dated May 24, 2013 (which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR). In connection with our audits of the aforementioned financial statements and financial highlights, we also audited the related portfolios of investments included in Item 6 of this Form N-CSR. The portfolios of investments are the responsibility of management. Our responsibility is to express an opinion on the portfolios of investments based on our audits.
In our opinion, the portfolios of investments, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
Boston, Massachusetts
May 24, 2013
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013
ING GNMA INCOME FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
COLLATERALIZED MORTGAGE OBLIGATIONS: 0.1% | | |
| | | | | | Vendee Mortgage Trust, 3.750%, 10/15/41 | | $ | 1,052,898 | | | | 0.1 | |
| |
| | | | | | Total Collateralized Mortgage Obligations
(Cost $1,035,519) | | | 1,052,898 | | | | 0.1 | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS: 107.8% |
| Federal Home Loan Mortgage Corporation: 3.3%## |
| | | | | | | | | 405,793 | | | | 0.0 | |
| | | | | | | | | 1,044,435 | | | | 0.1 | |
| | | | | | | | | 1,556,017 | | | | 0.2 | |
| | | | | | | | | 186,749 | | | | 0.0 | |
| | | | | | | | | 156,172 | | | | 0.0 | |
| | | | | | | | | 178,379 | | | | 0.0 | |
| | | | | | | | | 137,206 | | | | 0.0 | |
| | | | | | | | | 159,206 | | | | 0.0 | |
| | | | | | | | | 372,150 | | | | 0.0 | |
| | | | | | | | | 653,731 | | | | 0.1 | |
| | | | | | | | | 115,165 | | | | 0.0 | |
| | | | | | | | | 701,070 | | | | 0.1 | |
| | | | | | | | | 69,427 | | | | 0.0 | |
| | | | | | | | | 45,518 | | | | 0.0 | |
| | | | | | | | | 617,731 | | | | 0.1 | |
| | | | | | | | | 91,915 | | | | 0.0 | |
| | | | | | | | | 205,510 | | | | 0.0 | |
| | | | | | | | | 100,257 | | | | 0.0 | |
| | | | | | | | | 193,592 | | | | 0.0 | |
| | | | | | | | | 248,007 | | | | 0.0 | |
| | | | | | | | | 375,808 | | | | 0.0 | |
| | | | | | | | | 35,230 | | | | 0.0 | |
| | | | | | | | | 542,067 | | | | 0.1 | |
| | | | | | | | | 142,055 | | | | 0.0 | |
| | | | | | | | | 189,950 | | | | 0.0 | |
| | | | | | | | | 413,411 | | | | 0.1 | |
| | | | | | | | | 173,080 | | | | 0.0 | |
| | | | | | | | | 177,698 | | | | 0.0 | |
| | | | | | | | | 170,425 | | | | 0.0 | |
| | | | | | | | | 177,207 | | | | 0.0 | |
| | | | | | | | | 390,948 | | | | 0.0 | |
| | | | | | | | | 953,624 | | | | 0.1 | |
| | | | | | | | | 12,145,181 | | | | 1.1 | |
| | | | | | | | | 4,656,413 | | | | 0.4 | |
| | | | | | | | | 166,394 | | | | 0.0 | |
| | | | | | | | | 625,600 | | | | 0.1 | |
| | | | | | | | | 3,844 | | | | 0.0 | |
| | | | | | | | | 32,461 | | | | 0.0 | |
| | | | | | | | | 41,065 | | | | 0.0 | |
| | | | | | | | | 191,923 | | | | 0.0 | |
| | | | | | | | | 11,814 | | | | 0.0 | |
| | | | | | | | | 24,247 | | | | 0.0 | |
| | | | | | | | | 1,530,546 | | | | 0.1 | |
| | | | | | | | | 1,190,568 | | | | 0.1 | |
| | | | | | | | | 6,420,111 | | | | 0.6 | |
| | | | | | | | | 38,019,700 | | | | 3.3 | |
|
| Federal National Mortgage Association 10.8%## |
| | | | | | | | | 5,256,714 | | | | 0.5 | |
| | | | | | | | | 3,653,529 | | | | 0.3 | |
| | | | | | | | | 12,512,090 | | | | 1.1 | |
| | | | | | | | | 1,766,110 | | | | 0.2 | |
| | | | | | | | | 23,472,793 | | | | 2.0 | |
| | | | | | | | | 15,174,577 | | | | 1.3 | |
| | | | | | | | | 27,071,686 | | | | 2.4 | |
| | | | | | | | | 16,288,286 | | | | 1.4 | |
| | | | | | | | | 1,992,405 | | | | 0.2 | |
| | | | | | | | | 377,469 | | | | 0.0 | |
| | | | | | | | | 147,950 | | | | 0.0 | |
| | | | | | | | | 122,926 | | | | 0.0 | |
| | | | | | | | | 520,715 | | | | 0.1 | |
| | | | | | | | | 474,839 | | | | 0.0 | |
| | | | | | | | | 258,423 | | | | 0.0 | |
| | | | | | | | | 481,635 | | | | 0.1 | |
| | | | | | | | | 377,995 | | | | 0.0 | |
| | | | | | | | | 141,488 | | | | 0.0 | |
| | | | | | | | | 786,285 | | | | 0.1 | |
| | | | | | | | | 81,945 | | | | 0.0 | |
| | | | | | | | | 418,492 | | | | 0.0 | |
| | | | | | | | | 3,181,228 | | | | 0.3 | |
| | | | | | | | | 726,281 | | | | 0.1 | |
| | | | | | | | | 2,994 | | | | 0.0 | |
| | | | | | | | | 251,025 | | | | 0.0 | |
| | | | | | | �� | | 302,585 | | | | 0.0 | |
| | | | | | | | | 131,524 | | | | 0.0 | |
| | | | | | | | | 56,566 | | | | 0.0 | |
| | | | | | | | | 45,996 | | | | 0.0 | |
| | | | | | | | | 114,072 | | | | 0.0 | |
| | | | | | | | | 5,039 | | | | 0.0 | |
| | | | | | | | | 58,886 | | | | 0.0 | |
| | | | | | | | | 2,241,933 | | | | 0.2 | |
| | | | | | | | | 8,904 | | | | 0.0 | |
| | | | | | | | | 13,768 | | | | 0.0 | |
| | | | | | | | | 6,140,446 | | | | 0.5 | |
| | | | | | | | | 124,659,599 | | | | 10.8 | |
|
| Government National Mortgage Association 93.7% |
| | | | | | | | | 98,779 | | | | 0.0 | |
| | | | | | | | | 334,920 | | | | 0.0 | |
| | | | | | | | | 13,175,918 | | | | 1.2 | |
| | | | | | | | | 16,737,385 | | | | 1.5 | |
| | | | | | | | | 13,472,109 | | | | 1.2 | |
| | | | | | | | | 11,142,635 | | | | 1.0 | |
| | | | | | | | | 1,829,173 | | | | 0.2 | |
| | | | | | | | | 4,848,691 | | | | 0.4 | |
| | | | | | | | | 17,806,630 | | | | 1.6 | |
| | | | | | | | | 14,145,707 | | | | 1.2 | |
| | | | | | | | | 3,690,915 | | | | 0.3 | |
| | | | | | | | | 51,650 | | | | 0.0 | |
| | | | | | | | | 3,637,926 | | | | 0.3 | |
| | | | | | | | | 4,297,569 | | | | 0.4 | |
| | | | | | | | | 13,205,952 | | | | 1.2 | |
| | | | | | | | | 1,671,848 | | | | 0.2 | |
| | | | | | | | | 7,240,394 | | | | 0.6 | |
| | | | | | | | | 127,127,806 | | | | 11.1 | |
See Accompanying Notes to Financial Statements
1
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING GNMA INCOME FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | | | $ | 69,437,887 | | | | 6.0 | |
| | | | | | | | | 122,175,547 | | | | 10.6 | |
| | | | | | | | | 399,916 | | | | 0.0 | |
| | | | | | | | | 552,813 | | | | 0.1 | |
| | | | | | | | | 554,317 | | | | 0.1 | |
| | | | | | | | | 238,731 | | | | 0.0 | |
| | | | | | | | | 524,373 | | | | 0.1 | |
| | | | | | | | | 745,983 | | | | 0.1 | |
| | | | | | | | | 912,741 | | | | 0.1 | |
| | | | | | | | | 1,746,965 | | | | 0.2 | |
| | | | | | | | | 2,282,475 | | | | 0.2 | |
| | | | | | | | | 2,476,856 | | | | 0.2 | |
| | | | | | | | | 1,807,124 | | | | 0.2 | |
| | | | | | | | | 1,016,749 | | | | 0.1 | |
| | | | | | | | | 15,408,068 | | | | 1.3 | |
| | | | | | | | | 2,635,889 | | | | 0.2 | |
| | | | | | | | | 17,204,918 | | | | 1.5 | |
| | | | | | | | | 482,933 | | | | 0.1 | |
| | | | | | | | | 4,389,426 | | | | 0.4 | |
| | | | | | | | | 1,777,304 | | | | 0.2 | |
| | | | | | | | | 35,659,878 | | | | 3.1 | |
| | | | | | | | | 5,167,356 | | | | 0.5 | |
| | | | | | | | | 11,537,695 | | | | 1.0 | |
| | | | | | | | | 10,774,810 | | | | 0.9 | |
| | | | | | | | | 502,535 | | | | 0.1 | |
| | | | | | | | | 829,334 | | | | 0.1 | |
| | | | | | | | | 381,083 | | | | 0.0 | |
| | | | | | | | | 550,269 | | | | 0.1 | |
| | | | | | | | | 646,576 | | | | 0.1 | |
| | | | | | | | | 180,147 | | | | 0.0 | |
| | | | | | | | | 373,332 | | | | 0.0 | |
| | | | | | | | | 111,747 | | | | 0.0 | |
| | | | | | | | | 859,046 | | | | 0.1 | |
| | | | | | | | | 114,065 | | | | 0.0 | |
| | | | | | | | | 46,979 | | | | 0.0 | |
| | | | | | | | | 152,482 | | | | 0.0 | |
| | | | | | | | | 75,928 | | | | 0.0 | |
| | | | | | | | | 158,022 | | | | 0.0 | |
| | | | | | | | | 419,035 | | | | 0.0 | |
| | | | | | | | | 746,023 | | | | 0.1 | |
| | | | | | | | | 2,184,596 | | | | 0.2 | |
| | | | | | | | | 651,054 | | | | 0.1 | |
| | | | | | | | | 5,464,402 | | | | 0.5 | |
| | | | | | | | | 319,799 | | | | 0.0 | |
| | | | | | | | | 3,765,239 | | | | 0.3 | |
| | | | | | | | | 3,500,927 | | | | 0.3 | |
| | | | | | | | | 3,106,841 | | | | 0.3 | |
| | | | | | | | | 865,745 | | | | 0.1 | |
| | | | | | | | | 2,839,899 | | | | 0.3 | |
| | | | | | | | | 10,703,463 | | | | 0.9 | |
| | | | | | | | | 1,144,693 | | | | 0.1 | |
| | | | | | | | | 3,979,423 | | | | 0.4 | |
| | | | | | | | | 939,861 | | | | 0.1 | |
| | | | | | | | | 7,057,126 | | | | 0.6 | |
| | | | | | | | | 1,121,878 | | | | 0.1 | |
| | | | | | | | | 4,430,150 | | | | 0.4 | |
| | | | | | | | | 9,191,073 | | | | 0.8 | |
| | | | | | | | | 2,340,615 | | | | 0.2 | |
| | | | | | | | | 1,535,712 | | | | 0.1 | |
| | | | | | | | | 13,836,385 | | | | 1.2 | |
| | | | | | | | | 2,200,395 | | | | 0.2 | |
| | | | | | | | | 5,054,734 | | | | 0.4 | |
| | | | | | | | | 211,021 | | | | 0.0 | |
| | | | | | | | | 621,052 | | | | 0.1 | |
| | | | | | | | | 669,927 | | | | 0.1 | |
| | | | | | | | | 372,075 | | | | 0.0 | |
| | | | | | | | | 562,990 | | | | 0.1 | |
| | | | | | | | | 335,160 | | | | 0.0 | |
| | | | | | | | | 740,238 | | | | 0.1 | |
| | | | | | | | | 351,429 | | | | 0.0 | |
| | | | | | | | | 1,319,786 | | | | 0.1 | |
| | | | | | | | | 291,821 | | | | 0.0 | |
| | | | | | | | | 593,475 | | | | 0.1 | |
| | | | | | | | | 197,640 | | | | 0.0 | |
| | | | | | | | | 871,432 | | | | 0.1 | |
| | | | | | | | | 595,613 | | | | 0.1 | |
| | | | | | | | | 412,686 | | | | 0.0 | |
| | | | | | | | | 5,573,017 | | | | 0.5 | |
| | | | | | | | | 665,626 | | | | 0.1 | |
| | | | | | | | | 488,506 | | | | 0.1 | |
| | | | | | | | | 604,432 | | | | 0.1 | |
| | | | | | | | | 569,153 | | | | 0.1 | |
| | | | | | | | | 224,888 | | | | 0.0 | |
| | | | | | | | | 287,057 | | | | 0.0 | |
| | | | | | | | | 156,057 | | | | 0.0 | |
| | | | | | | | | 328,864 | | | | 0.0 | |
| | | | | | | | | 1,074,707 | | | | 0.1 | |
| | | | | | | | | 316,651 | | | | 0.0 | |
| | | | | | | | | 314,927 | | | | 0.0 | |
| | | | | | | | | 175,998 | | | | 0.0 | |
| | | | | | | | | 233,061 | | | | 0.0 | |
| | | | | | | | | 5,942,901 | | | | 0.5 | |
| | | | | | | | | 157,984 | | | | 0.0 | |
| | | | | | | | | 579,626 | | | | 0.1 | |
| | | | | | | | | 226,085 | | | | 0.0 | |
| | | | | | | | | 724,758 | | | | 0.1 | |
| | | | | | | | | 173,786 | | | | 0.0 | |
| | | | | | | | | 3,314,889 | | | | 0.3 | |
| | | | | | | | | 253,294 | | | | 0.0 | |
| | | | | | | | | 1,084,516 | | | | 0.1 | |
| | | | | | | | | 462,570 | | | | 0.0 | |
| | | | | | | | | 206,722 | | | | 0.0 | |
| | | | | | | | | 86,060 | | | | 0.0 | |
| | | | | | | | | 591,522 | | | | 0.1 | |
| | | | | | | | | 470,845 | | | | 0.0 | |
| | | | | | | | | 105,885 | | | | 0.0 | |
| | | | | | | | | 337,534 | | | | 0.0 | |
| | | | | | | | | 62,809 | | | | 0.0 | |
| | | | | | | | | 1,533,192 | | | | 0.1 | |
| | | | | | | | | 2,425,785 | | | | 0.2 | |
| | | | | | | | | 354,748 | | | | 0.0 | |
| | | | | | | | | 1,444,928 | | | | 0.1 | |
| | | | | | | | | 263,584 | | | | 0.0 | |
| | | | | | | | | 305,229 | | | | 0.0 | |
| | | | | | | | | 310,235 | | | | 0.0 | |
| | | | | | | | | 786,148 | | | | 0.1 | |
| | | | | | | | | 940,133 | | | | 0.1 | |
| | | | | | | | | 283,494 | | | | 0.0 | |
| | | | | | | | | 859,708 | | | | 0.1 | |
| | | | | | | | | 190,709 | | | | 0.0 | |
| | | | | | | | | 204,516 | | | | 0.0 | |
| | | | | | | | | 527,204 | | | | 0.1 | |
| | | | | | | | | 1,069,807 | | | | 0.1 | |
| | | | | | | | | 634,429 | | | | 0.1 | |
| | | | | | | | | 326,031 | | | | 0.0 | |
| | | | | | | | | 867,664 | | | | 0.1 | |
| | | | | | | | | 679,175 | | | | 0.1 | |
| | | | | | | | | 928,556 | | | | 0.1 | |
| | | | | | | | | 2,639,058 | | | | 0.2 | |
| | | | | | | | | 789,436 | | | | 0.1 | |
| | | | | | | | | 859,824 | | | | 0.1 | |
| | | | | | | | | 1,186,469 | | | | 0.1 | |
| | | | | | | | | 517,553 | | | | 0.1 | |
| | | | | | | | | 286,537 | | | | 0.0 | |
| | | | | | | | | 1,851,494 | | | | 0.2 | |
| | | | | | | | | 2,250,713 | | | | 0.2 | |
| | | | | | | | | 787,041 | | | | 0.1 | |
| | | | | | | | | 4,513,288 | | | | 0.4 | |
| | | | | | | | | 2,708,920 | | | | 0.2 | |
| | | | | | | | | 4,369,496 | | | | 0.4 | |
See Accompanying Notes to Financial Statements
2
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING GNMA INCOME FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | | | $ | 2,098,494 | | | | 0.2 | |
| | | | | | | | | 1,276,440 | | | | 0.1 | |
| | | | | | | | | 1,835,066 | | | | 0.2 | |
| | | | | | | | | 43,714,993 | | | | 3.8 | |
| | | | | | | | | 3,251,406 | | | | 0.3 | |
| | | | | | | | | 1,796,256 | | | | 0.2 | |
| | | | | | | | | 333,855 | | | | 0.0 | |
| | | | | | | | | 5,375,960 | | | | 0.5 | |
| | | | | | | | | 421,840 | | | | 0.0 | |
| | | | | | | | | 9,441,834 | | | | 0.8 | |
| | | | | | | | | 7,101,903 | | | | 0.6 | |
| | | | | | | | | 14,543 | | | | 0.0 | |
| | | | | | | | | 1,975,127 | | | | 0.2 | |
| | | | | | | | | 15,825,049 | | | | 1.4 | |
| | | | | | | | | 2,983,963 | | | | 0.3 | |
| | | | | | | | | 395,813 | | | | 0.0 | |
| | | | | | | | | 313,693 | | | | 0.0 | |
| | | | | | | | | 284,002 | | | | 0.0 | |
| | | | | | | | | 7,460 | | | | 0.0 | |
| | | | | | | | | 194,489 | | | | 0.0 | |
| | | | | | | | | 1,322,545 | | | | 0.1 | |
| | | | | | | | | 2,528,091 | | | | 0.2 | |
| | | | | | | | | 3,962,048 | | | | 0.4 | |
| | | | | | | | | 45,666 | | | | 0.0 | |
| | | | | | | | | 82,870 | | | | 0.0 | |
| | | | | | | | | 648,774 | | | | 0.1 | |
| | | | | | | | | 1,937,278 | | | | 0.2 | |
| | | | | | | | | 27,339 | | | | 0.0 | |
| | | | | | | | | 99,720 | | | | 0.0 | |
| | | | | | | | | 201,470 | | | | 0.0 | |
| | | | | | | | | 293,964 | | | | 0.0 | |
| | | | | | | | | 269,255 | | | | 0.0 | |
| | | | | | | | | 5,181,801 | | | | 0.5 | |
| | | | | | | | | 393,651 | | | | 0.0 | |
| | | | | | | | | 613,360 | | | | 0.1 | |
| | | | | | | | | 386,189 | | | | 0.0 | |
| | | | | | | | | 2,018,831 | | | | 0.2 | |
| | | | | | | | | 1,173,756 | | | | 0.1 | |
| | | | | | | | | 83,523 | | | | 0.0 | |
| | | | | | | | | 337,890 | | | | 0.0 | |
| | | | | | | | | 538,370 | | | | 0.1 | |
| | | | | | | | | 242,321 | | | | 0.0 | |
| | | | | | | | | 163,271 | | | | 0.0 | |
| | | | | | | | | 498,192 | | | | 0.1 | |
| | | | | | | | | 338,729 | | | | 0.0 | |
| | | | | | | | | 505,121 | | | | 0.1 | |
| | | | | | | | | 338,334 | | | | 0.0 | |
| | | | | | | | | 1,146,727 | | | | 0.1 | |
| | | | | | | | | 182,062 | | | | 0.0 | |
| | | | | | | | | 109,076 | | | | 0.0 | |
| | | | | | | | | 482,200 | | | | 0.1 | |
| | | | | | | | | 607,792 | | | | 0.1 | |
| | | | | | | | | 287,079 | | | | 0.0 | |
| | | | | | | | | 282,183 | | | | 0.0 | |
| | | | | | | | | 80,766 | | | | 0.0 | |
| | | | | | | | | 351,897 | | | | 0.0 | |
| | | | | | | | | 839,486 | | | | 0.1 | |
| | | | | | | | | 418,214 | | | | 0.0 | |
| | | | | | | | | 600,463 | | | | 0.1 | |
| | | | | | | | | 560,455 | | | | 0.1 | |
| | | | | | | | | 168,899 | | | | 0.0 | |
| | | | | | | | | 1,221,727 | | | | 0.1 | |
| | | | | | | | | 177,406 | | | | 0.0 | |
| | | | | | | | | 1,136,232 | | | | 0.1 | |
| | | | | | | | | 652,733 | | | | 0.1 | |
| | | | | | | | | 721,390 | | | | 0.1 | |
| | | | | | | | | 319,900 | | | | 0.0 | |
| | | | | | | | | 2,258,562 | | | | 0.2 | |
| | | | | | | | | 1,733,355 | | | | 0.2 | |
| | | | | | | | | 60,750 | | | | 0.0 | |
| | | | | | | | | 747,594 | | | | 0.1 | |
| | | | | | | | | 11,737,079 | | | | 1.0 | |
| | | | | | | | | 3,081,028 | | | | 0.3 | |
| | | | | | | | | 211,637 | | | | 0.0 | |
| | | | | | | | | 388,885 | | | | 0.0 | |
| | | | | | | | | 1,497,557 | | | | 0.1 | |
| | | | | | | | | 4,671,991 | | | | 0.4 | |
| | | | | | | | | 6,447,130 | | | | 0.6 | |
| | | | | | | | | 220,010 | | | | 0.0 | |
| | | | | | | | | 206,211 | | | | 0.0 | |
| | | | | | | | | 507,432 | | | | 0.1 | |
| | | | | | | | | 62,116 | | | | 0.0 | |
| | | | | | | | | 817,651 | | | | 0.1 | |
| | | | | | | | | 75,676 | | | | 0.0 | |
| | | | | | | | | 15,648,991 | | | | 1.4 | |
| | | | | | | | | 357,112 | | | | 0.0 | |
| | | | | | | | | 229,207 | | | | 0.0 | |
| | | | | | | | | 2,206,850 | | | | 0.2 | |
| | | | | | | | | 401,796 | | | | 0.0 | |
| | | | | | | | | 196,223 | | | | 0.0 | |
| | | | | | | | | 2,960,063 | | | | 0.3 | |
| | | | | | | | | 227,282 | | | | 0.0 | |
| | | | | | | | | 939,228 | | | | 0.1 | |
| | | | | | | | | 202,509 | | | | 0.0 | |
| | | | | | | | | 204,278 | | | | 0.0 | |
| | | | | | | | | 464,116 | | | | 0.0 | |
| | | | | | | | | 192,805 | | | | 0.0 | |
| | | | | | | | | 123,967 | | | | 0.0 | |
| | | | | | | | | 118,756 | | | | 0.0 | |
| | | | | | | | | 269,396 | | | | 0.0 | |
| | | | | | | | | 93,697 | | | | 0.0 | |
| | | | | | | | | 125,660 | | | | 0.0 | |
| | | | | | | | | 34,261 | | | | 0.0 | |
| | | | | | | | | 101,956 | | | | 0.0 | |
| | | | | | | | | 117,854 | | | | 0.0 | |
| | | | | | | | | 87,371 | | | | 0.0 | |
| | | | | | | | | 195,183 | | | | 0.0 | |
| | | | | | | | | 688,093 | | | | 0.1 | |
| | | | | | | | | 495,133 | | | | 0.1 | |
| | | | | | | | | 57,628 | | | | 0.0 | |
| | | | | | | | | 181,991 | | | | 0.0 | |
| | | | | | | | | 120,904 | | | | 0.0 | |
| | | | | | | | | 65,943 | | | | 0.0 | |
| | | | | | | | | 189,219 | | | | 0.0 | |
| | | | | | | | | 127,132 | | | | 0.0 | |
| | | | | | | | | 145,952 | | | | 0.0 | |
| | | | | | | | | 61,767 | | | | 0.0 | |
| | | | | | | | | 107,014 | | | | 0.0 | |
| | | | | | | | | 407,724 | | | | 0.0 | |
| | | | | | | | | 112,637 | | | | 0.0 | |
| | | | | | | | | 56,413 | | | | 0.0 | |
| | | | | | | | | 1,196,014 | | | | 0.1 | |
| | | | | | | | | 51,878 | | | | 0.0 | |
| | | | | | | | | 332,581 | | | | 0.0 | |
| | | | | | | | | 12,039,845 | | | | 1 .1 | |
| | | | | | | | | 2,751,362 | | | | 0.2 | |
| | | | | | | | | 1,149,626 | | | | 0.1 | |
| | | | | | | | | 84,577 | | | | 0.0 | |
| | | | | | | | | 1,204,049 | | | | 0.1 | |
| | | | | | | | | 989,425 | | | | 0.1 | |
| | | | | | | | | 110,875 | | | | 0.0 | |
| | | | | | | | | 173,199 | | | | 0.0 | |
| | | | | | | | | 295,579 | | | | 0.0 | |
| | | | | | | | | 1,248,741 | | | | 0.1 | |
| | | | | | | | | 45,704 | | | | 0.0 | |
| | | | | | | | | 928,165 | | | | 0.1 | |
| | | | | | | | | 784,945 | | | | 0.1 | |
| | | | | | | | | 5,814,540 | | | | 0.5 | |
| | | | | | | | | 1,868,001 | | | | 0.2 | |
| | | | | | | | | 252,876 | | | | 0.0 | |
See Accompanying Notes to Financial Statements
3
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING GNMA INCOME FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | | | $ | 397,218 | | | | 0.0 | |
| | | | | | | | | 879,535 | | | | 0.1 | |
| | | | | | | | | 269,100 | | | | 0.0 | |
| | | | | | | | | 276,209 | | | | 0.0 | |
| | | | | | | | | 60,725 | | | | 0.0 | |
| | | | | | | | | 258,974 | | | | 0.0 | |
| | | | | | | | | 70,567 | | | | 0.0 | |
| | | | | | | | | 228,736 | | | | 0.0 | |
| | | | | | | | | 136,847 | | | | 0.0 | |
| | | | | | | | | 43,954 | | | | 0.0 | |
| | | | | | | | | 311,999 | | | | 0.0 | |
| | | | | | | | | 932,481 | | | | 0.1 | |
| | | | | | | | | 59,065 | | | | 0.0 | |
| | | | | | | | | 210,458 | | | | 0.0 | |
| | | | | | | | | 792,451 | | | | 0.1 | |
| | | | | | | | | 584,042 | | | | 0.1 | |
| | | | | | | | | 2,303,848 | | | | 0.2 | |
| | | | | | | | | 2,781,174 | | | | 0.3 | |
| | | | | | | | | 729,771 | | | | 0.1 | |
| | | | | | | | | 112,579 | | | | 0.0 | |
| | | | | | | | | 106,757 | | | | 0.0 | |
| | | | | | | | | 519,942 | | | | 0.1 | |
| | | | | | | | | 162,719 | | | | 0.0 | |
| | | | | | | | | 477,417 | | | | 0.0 | |
| | | | | | | | | 294,029 | | | | 0.0 | |
| | | | | | | | | 123,237 | | | | 0.0 | |
| | | | | | | | | 84,889 | | | | 0.0 | |
| | | | | | | | | 296,465 | | | | 0.0 | |
| | | | | | | | | 930,333 | | | | 0.1 | |
| | | | | | | | | 198,983 | | | | 0.0 | |
| | | | | | | | | 275,349 | | | | 0.0 | |
| | | | | | | | | 273,854 | | | | 0.0 | |
| | | | | | | | | 210,768 | | | | 0.0 | |
| | | | | | | | | 1,043,531 | | | | 0.1 | |
| | | | | | | | | 1,996,104 | | | | 0.2 | |
| | | | | | | | | 413,494 | | | | 0.0 | |
| | | | | | | | | 338,506 | | | | 0.0 | |
| | | | | | | | | 164,766 | | | | 0.0 | |
| | | | | | | | | 176,323 | | | | 0.0 | |
| | | | | | | | | 282,538 | | | | 0.0 | |
| | | | | | | | | 911,962 | | | | 0.1 | |
| | | | | | | | | 117,075 | | | | 0.0 | |
| | | | | | | | | 2,324,880 | | | | 0.2 | |
| | | | | | | | | 141,699 | | | | 0.0 | |
| | | | | | | | | 236,944 | | | | 0.0 | |
| | | | | | | | | 327,871 | | | | 0.0 | |
| | | | | | | | | 287,840 | | | | 0.0 | |
| | | | | | | | | 31,029 | | | | 0.0 | |
| | | | | | | | | 5,379,741 | | | | 0.5 | |
| | | | | | | | | 259,617 | | | | 0.0 | |
| | | | | | | | | 778,136 | | | | 0.1 | |
| | | | | | | | | 194,173 | | | | 0.0 | |
| | | | | | | | | 429,769 | | | | 0.0 | |
| | | | | | | | | 101,100 | | | | 0.0 | |
| | | | | | | | | 223,450 | | | | 0.0 | |
| | | | | | | | | 349,941 | | | | 0.0 | |
| | | | | | | | | 350,083 | | | | 0.0 | |
| | | | | | | | | 228,135 | | | | 0.0 | |
| | | | | | | | | 72,730 | | | | 0.0 | |
| | | | | | | | | 79,341 | | | | 0.0 | |
| | | | | | | | | 356,482 | | | | 0.0 | |
| | | | | | | | | 428,013 | | | | 0.0 | |
| | | | | | | | | 354,763 | | | | 0.0 | |
| | | | | | | | | 688,257 | | | | 0.1 | |
| | | | | | | | | 122,444 | | | | 0.0 | |
| | | | | | | | | 69,407 | | | | 0.0 | |
| | | | | | | | | 1,425,548 | | | | 0.1 | |
| | | | | | | | | 124,842 | | | | 0.0 | |
| | | | | | | | | 2,018,035 | | | | 0.2 | |
| | | | | | | | | 549,913 | | | | 0.1 | |
| | | | | | | | | 700,580 | | | | 0.1 | |
| | | | | | | | | 101,520 | | | | 0.0 | |
| | | | | | | | | 222,845 | | | | 0.0 | |
| | | | | | | | | 137,018 | | | | 0.0 | |
| | | | | | | | | 519,212 | | | | 0.1 | |
| | | | | | | | | 267,632 | | | | 0.0 | |
| | | | | | | | | 170,615 | | | | 0.0 | |
| | | | | | | | | 676,513 | | | | 0.1 | |
| | | | | | | | | 234,462 | | | | 0.0 | |
| | | | | | | | | 1,147,171 | | | | 0.1 | |
| | | | | | | | | 9,013,615 | | | | 0.8 | |
| | | | | | | | | 409,894 | | | | 0.0 | |
| | | | | | | | | 4,488,202 | | | | 0.4 | |
| | | | | | | | | 344,876 | | | | 0.0 | |
| | | | | | | | | 2,277,977 | | | | 0.2 | |
| | | | | | | | | 59,056 | | | | 0.0 | |
| | | | | | | | | 398,059 | | | | 0.0 | |
| | | | | | | | | 469,059 | | | | 0.0 | |
| | | | | | | | | 654,819 | | | | 0.1 | |
| | | | | | | | | 385,456 | | | | 0.0 | |
| | | | | | | | | 493,104 | | | | 0.1 | |
| | | | | | | | | 370,712 | | | | 0.0 | |
| | | | | | | | | 2,287,088 | | | | 0.2 | |
| | | | | | | | | 1,684,729 | | | | 0.2 | |
| | | | | | | | | 1,257,133 | | | | 0.1 | |
| | | | | | | | | 993,614 | | | | 0.1 | |
| | | | | | | | | 88,499 | | | | 0.0 | |
| | | | | | | | | 312,631 | | | | 0.0 | |
| | | | | | | | | 120,859 | | | | 0.0 | |
| | | | | | | | | 148,070 | | | | 0.0 | |
| | | | | | | | | 210,808 | | | | 0.0 | |
| | | | | | | | | 60,679 | | | | 0.0 | |
| | | | | | | | | 174,137 | | | | 0.0 | |
| | | | | | | | | 3,983,637 | | | | 0.4 | |
| | | | | | | | | 243,873 | | | | 0.0 | |
| | | | | | | | | 1,319,905 | | | | 0.1 | |
| | | | | | | | | 2,940,730 | | | | 0.3 | |
| | | | | | | | | 310,257 | | | | 0.0 | |
| | | | | | | | | 340,643 | | | | 0.0 | |
| | | | | | | | | 22,258 | | | | 0.0 | |
| | | | | | | | | 18,508 | | | | 0.0 | |
| | | | | | | | | 166,527 | | | | 0.0 | |
| | | | | | | | | 1,485,787 | | | | 0.1 | |
| | | | | | | | | 868,503 | | | | 0.1 | |
| | | | | | | | | 1,748,048 | | | | 0.2 | |
| | | | | | | | | 6,200,534 | | | | 0.5 | |
| | | | | | | | | 301,593 | | | | 0.0 | |
| | | | | | | | | 128,336 | | | | 0.0 | |
| | | | | | | | | 98,086 | | | | 0.0 | |
| | | | | | | | | 95,832 | | | | 0.0 | |
| | | | | | | | | 140,091 | | | | 0.0 | |
| | | | | | | | | 460,297 | | | | 0.0 | |
| | | | | | | | | 120,010 | | | | 0.0 | |
| | | | | | | | | 138,491 | | | | 0.0 | |
| | | | | | | | | 235,262 | | | | 0.0 | |
| | | | | | | | | 237,244 | | | | 0.0 | |
| | | | | | | | | 649,857 | | | | 0.1 | |
| | | | | | | | | 270,072 | | | | 0.0 | |
| | | | | | | | | 6,385 | | | | 0.0 | |
| | | | | | | | | 99,483 | | | | 0.0 | |
| | | | | | | | | 381,315 | | | | 0.0 | |
| | | | | | | | | 210,474 | | | | 0.0 | |
| | | | | | | | | 157,496 | | | | 0.0 | |
| | | | | | | | | 173,503 | | | | 0.0 | |
| | | | | | | | | 124,054 | | | | 0.0 | |
| | | | | | | | | 416,707 | | | | 0.0 | |
| | | | | | | | | 333,088 | | | | 0.0 | |
| | | | | | | | | 115,066 | | | | 0.0 | |
| | | | | | | | | 235,929 | | | | 0.0 | |
| | | | | | | | | 2,009,130 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
4
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING GNMA INCOME FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | | | $ | 3,431,435 | | | | 0.3 | |
| | | | | | | | | 887,570 | | | | 0.1 | |
| | | | | | | | | 4,640 | | | | 0.0 | |
| | | | | | | | | 83,075 | | | | 0.0 | |
| | | | | | | | | 154,813 | | | | 0.0 | |
| | | | | | | | | 37,601 | | | | 0.0 | |
| | | | | | | | | 756,025 | | | | 0.1 | |
| | | | | | | | | 131,449 | | | | 0.0 | |
| | | | | | | | | 69,211 | | | | 0.0 | |
| | | | | | | | | 394,869 | | | | 0.0 | |
| | | | | | | | | 153,335 | | | | 0.0 | |
| | | | | | | | | 24,873 | | | | 0.0 | |
| | | | | | | | | 791,903 | | | | 0.1 | |
| | | | | | | | | 4,143,514 | | | | 0.4 | |
| | | | | | | | | 443,730 | | | | 0.0 | |
| | | | | | | | | 43,619 | | | | 0.0 | |
| | | | | | | | | 32,126 | | | | 0.0 | |
| | | | | | | | | 2,290,183 | | | | 0.2 | |
| | | | | | | | | 1,817,422 | | | | 0.2 | |
| | | | | | | | | 895,529 | | | | 0.1 | |
| | | | | | | | | 1,477,180 | | | | 0.1 | |
| | | | | | | | | 578,830 | | | | 0.1 | |
| | | | | | | | | 15,563 | | | | 0.0 | |
| | | | | | | | | 2,721 | | | | 0.0 | |
| | | | | | | | | 27,577 | | | | 0.0 | |
| | | | | | | | | 44,152 | | | | 0.0 | |
| | | | | | | | | 16,965 | | | | 0.0 | |
| | | | | | | | | 114,510 | | | | 0.0 | |
| | | | | | | | | 33,784 | | | | 0.0 | |
| | | | | | | | | 26,478 | �� | | | 0.0 | |
| | | | | | | | | 15,618 | | | | 0.0 | |
| | | | | | | | | 6,383 | | | | 0.0 | |
| | | | | | | | | 49,709 | | | | 0.0 | |
| | | | | | | | | 13,825 | | | | 0.0 | |
| | | | | | | | | 22,219 | | | | 0.0 | |
| | | | | | | | | 165,465 | | | | 0.0 | |
| | | | | | | | | 19,683 | | | | 0.0 | |
| | | | | | | | | 4,625 | | | | 0.0 | |
| | | | | | | | | 2,350,040 | | | | 0.2 | |
| | | | | | | | | 126,466 | | | | 0.0 | |
| | | | | | | | | 381,387 | | | | 0.0 | |
| | | | | | | | | 805,048 | | | | 0.1 | |
| | | | | | | | | 884,575 | | | | 0.1 | |
| | | | | | | | | 1,222,463 | | | | 0.1 | |
| | | | | | | | | 1,077,460,342 | | | | 93.7 | |
| |
| | | | | | Total U.S. Government Agency Obligations
(Cost $1,205,998,309) | | | 1,240,139,641 | | | | 107.8 | |
| |
| | | | | | Total Long-Term Investments
(Cost $1,207,033,828) | | | 1,241,192,539 | | | | 107.9 | |
| |
SHORT-TERM INVESTMENTS 7.0% |
| |
| | | | | | United States Treasury Bill, 0.070%, 04/18/13
(Cost $79,996,730) | | | 79,996,730 | | | | 7.0 | |
| |
| | | | | | Total Short-Term Investments
(Cost $79,996,730) | | | 79,996,730 | | | | 7.0 | |
| |
| | | | | | Total Investments in Securities
(Cost $1,287,030,558) | | $ | 1,321,189,269 | | | | 114.9 | |
| | | | | | Liabilities in Excess of
Other Assets | | | (171,344,079 | ) | | | (14.9 | ) |
| | | | | | | | $ | 1,149,845,190 | | | | 100.0 | |
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| ## | | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship and the U.S. Treasury guaranteed the debt issued by those organizations. |
| W | | Settlement is on a when-issued or delayed-delivery basis. |
| ˆ | | Interest only securities represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. Principal amount shown represents the notional amount on which current interest is calculated. Payments of principal on the pool reduce the value of the interest only security. |
| | | Cost for federal income tax purposes is $1,287,620,782. |
Net unrealized appreciation consists of: | | | | | | |
Gross Unrealized Appreciation | | | | $ | 37,531,140 | |
Gross Unrealized Depreciation | | | | | (3,962,653 | ) |
Net Unrealized Appreciation | | | | $ | 33,568,487 | |
See Accompanying Notes to Financial Statements
5
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING GNMA INCOME FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of March 31, 2013 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
March 31, 2013
|
|---|
| | | | | | | | | | | | | | | | | | |
Investments, at fair value | | | | | | | | | | | | | | | | | | |
Collateralized Mortgage Obligations | | | | $ | — | | | $ | 1,052,898 | | | $ | — | | | $ | 1,052,898 | |
| | | | | — | | | | 79,996,730 | | | | — | | | | 79,996,730 | |
U.S. Government Agency Obligations | | | | | — | | | | 1,240,139,641 | | | | — | | | | 1,240,139,641 | |
Total Investments, at fair value | | | | $ | — | | | $ | 1,321,189,269 | | | $ | — | | | $ | 1,321,189,269 | |
| | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| | | | $ | (591,914 | ) | | $ | — | | | $ | — | | | $ | (591,914 | ) |
| | | | $ | (591,914 | ) | | $ | — | | | $ | — | | | $ | (591,914 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
ING GNMA Income Fund Open Futures Contracts on March 31, 2013:
Contract Description
| | | | Number
of Contracts
| | Expiration
Date
| | Notional
Value
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| | | | | | | | | | | | | | | | | | |
U.S. Treasury 10-Year Note | | | | | (936 | ) | | | 06/19/13 | | | $ | (123,537,380 | ) | | $ | (384,901 | ) |
U.S. Treasury 5-Year Note | | | | | (204 | ) | | | 06/28/13 | | | | (25,307,157 | ) | | | (32,191 | ) |
| | | | | (398 | ) | | | 06/19/13 | | | | (57,498,562 | ) | | | (174,822 | ) |
| | | | | | | | | | | | $ | (206,343,099 | ) | | $ | (591,914 | ) |
See Accompanying Notes to Financial Statements
6
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
CORPORATE BONDS/NOTES 94.6% |
| Consumer Discretionary 20.7% |
| | | | | | 99 Cents Only Stores, 11.000%, 12/15/19 | | $ | 461,000 | | | | 0.2 | |
| | | | | | Affinia Group, Inc., 9.000%, 11/30/14 | | | 356,779 | | | | 0.2 | |
| | | | | | Affinia Group, Inc., 10.750%, 08/15/16 | | | 212,062 | | | | 0.1 | |
| | | | | | Affinity Gaming, LLC/Affinity Gaming Finance Corp., 9.000%, 05/15/18 | | | 627,412 | | | | 0.3 | |
| | | | | | Allbritton Communications Co., 8.000%, 05/15/18 | | | 402,375 | | | | 0.2 | |
| | | | | | AMC Entertainment, Inc., 9.750%, 12/01/20 | | | 1,100,812 | | | | 0.5 | |
| | | | | | American Media, Inc., 13.500%, 06/15/18 | | | 28,694 | | | | 0.0 | |
| | | | | | Asbury Automotive Group, Inc., 8.375%, 11/15/20 | | | 843,750 | | | | 0.4 | |
| | | | | | Ashton Woods USA LLC, 6.875%, 02/15/21 | | | 1,017,500 | | | | 0.5 | |
| | | | | | Block Communications, Inc., 7.250%, 02/01/20 | | | 726,512 | | | | 0.3 | |
| | | | | | Boyd Gaming Corp., 9.000%, 07/01/20 | | | 323,950 | | | | 0.1 | |
| | | | | | Bresnan Broadband Holdings, LLC, 8.000%, 12/15/18 | | | 547,500 | | | | 0.2 | |
| | | | | | Burlington Coat Factory Warehouse Corp., 10.000%, 02/15/19 | | | 480,565 | | | | 0.2 | |
| | | | | | Cablevision Systems Corp., 7.750%, 04/15/18 | | | 1,092,462 | | | | 0.5 | |
| | | | | | Caesars Entertainment Operating Co., Inc., 8.500%, 02/15/20 | | | 990,625 | | | | 0.5 | |
| | | | | | Carlson Wagonlit BV, 6.875%, 06/15/19 | | | 560,412 | | | | 0.3 | |
| | | | | | CCO Holdings, LLC / CCO Holdings Capital Corp., 5.250%, 03/15/21 | | | 249,687 | | | | 0.1 | |
| | | | | | CCO Holdings, LLC / CCO Holdings Capital Corp., 6.500%, 04/30/21 | | | 690,625 | | | | 0.3 | |
| | | | | | CCO Holdings, LLC / CCO Holdings Capital Corp., 7.250%, 10/30/17 | | | 497,375 | | | | 0.2 | |
| | | | | | CDR DB Sub, Inc., 7.750%, 10/15/20 | | | 774,375 | | | | 0.4 | |
| | | | | | Cequel Communications Holdings I, LLC / Cequel Capital Corp., 6.375%, 09/15/20 | | | 521,250 | | | | 0.2 | |
| | | | | | Ceridian Corp., 11.000%, 03/15/21 | | | 538,750 | | | | 0.2 | |
| | | | | | Chrysler Group, LLC/CG Co-Issuer, Inc., 8.000%, 06/15/19 | | | 495,562 | | | | 0.2 | |
| | | | | | CityCenter Holdings, LLC / CityCenter Finance Corp., 7.625%, 01/15/16 | | | 199,569 | | | | 0.1 | |
| | | | | | CityCenter Holdings, LLC / CityCenter Finance Corp., 10.750%, 01/15/17 | | | 766,854 | | | | 0.4 | |
| | | | | | Clear Channel Communications, Inc., 9.000%, 03/01/21 | | | 481,579 | | | | 0.2 | |
| | | | | | Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22 | | | 282,825 | | | | 0.1 | |
| | | | | | Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22 | | | 773,800 | | | | 0.4 | |
| | | | | | Clear Channel Worldwide Holdings, Inc., 7.625%, 03/15/20 | | | 109,069 | | | | 0.0 | |
| | | | | | Clear Channel Worldwide Holdings, Inc., 7.625%, 03/15/20 | | | 555,837 | | | | 0.3 | |
| | | | | | Coinstar, Inc., 6.000%, 03/15/19 | | | 512,500 | | | | 0.2 | |
| | | | | | Crown Media Holdings, Inc., 10.500%, 07/15/19 | | | 147,225 | | | | 0.1 | |
| | | | | | Cumulus Media Holdings, Inc., 7.750%, 05/01/19 | | | 991,200 | | | | 0.5 | |
| | | | | | DineEquity, Inc., 9.500%, 10/30/18 | | | 492,350 | | | | 0.2 | |
| | | | | | DISH DBS Corp., 5.875%, 07/15/22 | | | 843,000 | | | | 0.4 | |
| | | | | | DISH DBS Corp., 7.875%, 09/01/19 | | | 571,200 | | | | 0.3 | |
| | | | | | Emergency Medical Services Corp., 8.125%, 06/01/19 | | | 637,245 | | | | 0.3 | |
| | | | | | Gray Television, Inc., 7.500%, 10/01/20 | | | 750,750 | | | | 0.3 | |
| | | | | | Griffey Intermediate, Inc. / Griffey Finance Sub, LLC, 7.000%, 10/15/20 | | | 768,750 | | | | 0.4 | |
| | | | | | Harrah’s Operating Co., Inc., 10.000%, 12/15/18 | | | 412,500 | | | | 0.2 | |
| | | | | | Harron Communications L.P./Harron Finance Corp., 9.125%, 04/01/20 | | | 919,875 | | | | 0.4 | |
| | | | | | Isle of Capri Casinos, Inc., 8.875%, 06/15/20 | | | 490,500 | | | | 0.2 | |
| | | | | | Jaguar Holding Co. II / Jaguar Merger Sub, Inc., 9.500%, 12/01/19 | | | 576,250 | | | | 0.3 | |
| | | | | | K Hovnanian Enterprises, Inc., 7.250%, 10/15/20 | | | 445,000 | | | | 0.2 | |
| | | | | | K Hovnanian Enterprises, Inc., 9.125%, 11/15/20 | | | 447,500 | | | | 0.2 | |
| | | | | | KB Home, 5.875%, 01/15/15 | | | 265,625 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
7
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | KB Home, 6.250%, 06/15/15 | | $ | 808,125 | | | | 0.4 | |
| | | | | | LIN Television Corp., 6.375%, 01/15/21 | | | 695,500 | | | | 0.3 | |
| | | | | | Mediacom Broadband, LLC / Mediacom Broadband Corp., 6.375%, 04/01/23 | | | 260,625 | | | | 0.1 | |
| | | | | | Mediacom, LLC / Mediacom Capital Corp., 9.125%, 08/15/19 | | | 319,556 | | | | 0.1 | |
| | | | | | Meritage Homes Corp., 7.000%, 04/01/22 | | | 139,844 | | | | 0.1 | |
| | | | | | MGM Mirage, 7.500%, 06/01/16 | | | 556,250 | | | | 0.3 | |
| | | | | | MGM Resorts International, 7.750%, 03/15/22 | | | 1,115,000 | | | | 0.5 | |
| | | | | | MGM Resorts International, 8.625%, 02/01/19 | | | 585,000 | | | | 0.3 | |
| | | | | | NCL Corp. Ltd., 5.000%, 02/15/18 | | | 511,875 | | | | 0.2 | |
| | | | | | NCL Corp. Ltd., 9.500%, 11/15/18 | | | — | | | | — | |
| | | | | | New Academy Finance Co., LLC / New Academy Finance Corp., 8.000%, 06/15/18 | | | 780,000 | | | | 0.4 | |
| | | | | | Nielsen Finance, LLC / Nielsen Finance Co., 4.500%, 10/01/20 | | | 652,438 | | | | 0.3 | |
| | | | | | Nord Anglia Education, Inc., 8.500%, 02/15/18 | | | 505,000 | | | | 0.2 | |
| | | | | | PC Merger Sub, Inc., 8.875%, 08/01/20 | | | 689,063 | | | | 0.3 | |
| | | | | | Penske Automotive Group, Inc., 5.750%, 10/01/22 | | | 419,000 | | | | 0.2 | |
| | | | | | Petco Holdings, Inc., 8.500%, 10/15/17 | | | 673,563 | | | | 0.3 | |
| | | | | | PulteGroup, Inc., 7.875%, 06/15/32 | | | 555,000 | | | | 0.3 | |
| | | | | | Royal Caribbean Cruises Ltd., 5.250%, 11/15/22 | | | 508,750 | | | | 0.2 | |
| | | | | | RR Donnelley & Sons Co., 7.875%, 03/15/21 | | | 785,625 | | | | 0.4 | |
| | | | | | Ryland Group, Inc., 5.375%, 10/01/22 | | | 661,125 | | | | 0.3 | |
| | | | | | Sally Holdings, LLC / Sally Capital, Inc., 5.750%, 06/01/22 | | | 471,938 | | | | 0.2 | |
| | | | | | Shearer’s Foods, LLC / Chip Fin Corp., 9.000%, 11/01/19 | | | 1,100,000 | | | | 0.5 | |
| | | | | | Sonic Automotive, Inc., 7.000%, 07/15/22 | | | 221,750 | | | | 0.1 | |
| | | | | | Sonic Automotive, Inc., 9.000%, 03/15/18 | | | 331,500 | | | | 0.1 | |
| | | | | | Standard Pacific Corp., 8.375%, 01/15/21 | | | 1,010,438 | | | | 0.5 | |
| | | | | | Star Gas Partners L.P./Star Gas Finance Co., 8.875%, 12/01/17 | | | 298,700 | | | | 0.1 | |
| | | | | | Starz LLC / Starz Finance Corp., 5.000%, 09/15/19 | | | 589,950 | | | | 0.3 | |
| | | | | | Viking Cruises Ltd., 8.500%, 10/15/22 | | | 828,750 | | | | 0.4 | |
| | | | | | Visant Corp., 10.000%, 10/01/17 | | | 444,988 | | | | 0.2 | |
| | | | | | Wolverine Healthcare Analytics, 10.625%, 06/01/20 | | | 858,750 | | | | 0.4 | |
| | | | | | Wolverine World Wide, Inc., 6.125%, 10/15/20 | | | 773,031 | | | | 0.4 | |
| | | | | | XM Satellite Radio, Inc., 7.625%, 11/01/18 | | | 875,913 | | | | 0.4 | |
| | | | | | | | | 45,008,084 | | | | 20.7 | |
|
| |
| | | | | | Albea Beauty Holdings SA, 8.375%, 11/01/19 | | | 802,500 | | | | 0.4 | |
| | | | | | American Rock Salt Co., LLC/American Rock Capital Corp., 8.250%, 05/01/18 | | | 826,075 | | | | 0.4 | |
| | | | | | ARAMARK Corp., 5.750%, 03/15/20 | | | 1,027,500 | | | | 0.5 | |
| | | | | | Avis Budget Car Rental, LLC / Avis Budget Finance, Inc., 8.250%, 01/15/19 | | | 167,062 | | | | 0.1 | |
| | | | | | Avis Budget Car Rental, LLC / Avis Budget Finance, Inc., 9.625%, 03/15/18 | | | 504,523 | | | | 0.2 | |
| | | | | | Chiquita Brands International, Inc. / LLC, 7.875%, 02/01/21 | | | 788,437 | | | | 0.4 | |
| | | | | | Cott Beverages, Inc., 8.375%, 11/15/17 | | | 521,981 | | | | 0.2 | |
| | | | | | Darling International, Inc., 8.500%, 12/15/18 | | | 324,900 | | | | 0.1 | |
| | | | | | Eliz Arden, 7.375%, 03/15/21 | | | 719,981 | | | | 0.3 | |
| | | | | | FAGE Dairy Industry SA / FAGE USA Dairy Industry, Inc., 9.875%, 02/01/20 | | | 556,250 | | | | 0.3 | |
| | | | | | Hawk Acquisition Sub, Inc., 4.250%, 10/15/20 | | | 1,002,500 | | | | 0.5 | |
| | | | | | HDTFS, Inc., 6.250%, 10/15/22 | | | 408,750 | | | | 0.2 | |
| | | | | | Hertz Corp., 6.750%, 04/15/19 | | | 548,125 | | | | 0.2 | |
| | | | | | JBS USA, LLC/JBS USA Finance, Inc., 7.250%, 06/01/21 | | | 473,625 | | | | 0.2 | |
| | | | | | Michael Foods Holding, Inc., 8.500%, 07/15/18 | | | 776,250 | | | | 0.4 | |
| | | | | | Neff Rental, LLC/Neff Finance Corp., 9.625%, 05/15/16 | | | 581,788 | | | | 0.3 | |
| | | | | | Prestige Brands, Inc., 8.125%, 02/01/20 | | | 487,513 | | | | 0.2 | |
| | | | | | Revlon Consumer Products Corp., 5.750%, 02/15/21 | | | 1,007,500 | | | | 0.5 | |
See Accompanying Notes to Financial Statements
8
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer, LLC / Reynolds Group Issuer Lu, 8.250%, 02/15/21 | | $ | 516,875 | | | | 0.2 | |
| | | | | | Reynolds Group Issuer, Inc. / Reynolds Group Issuer, LLC / Reynolds Group Issuer Lu, 9.875%, 08/15/19 | | | 549,375 | | | | 0.3 | |
| | | | | | Rite Aid Corp., 6.875%, 12/15/28 | | | 213,600 | | | | 0.1 | |
| | | | | | RSC Equipment Rental, Inc./RSC Holdings III, LLC, 8.250%, 02/01/21 | | | 216,125 | | | | 0.1 | |
| | | | | | RSI Home Products, Inc., 6.875%, 03/01/18 | | | 765,000 | | | | 0.3 | |
| | | | | | ServiceMaster Co., 8.000%, 02/15/20 | | | 323,250 | | | | 0.1 | |
| | | | | | ServiceMaster Co., 7.450%, 08/15/27 | | | 365,400 | | | | 0.2 | |
| | | | | | Smithfield Foods, Inc., 6.625%, 08/15/22 | | | 693,738 | | | | 0.3 | |
| | | | | | Spectrum Brands Escrow Corp., 6.375%, 11/15/20 | | | 538,125 | | | | 0.2 | |
| | | | | | Sun Products Corp./The, 7.750%, 03/15/21 | | | 506,250 | | | | 0.2 | |
| | | | | | US Foodservice, 8.500%, 06/30/19 | | | 799,688 | | | | 0.4 | |
| | | | | | Wells Enterprises, Inc., 6.750%, 02/01/20 | | | 1,057,500 | | | | 0.5 | |
| | | | | | | | | 18,070,186 | | | | 8.3 | |
|
| |
| | | | | | Alpha Natural Resources, Inc., 6.250%, 06/01/21 | | | 497,750 | | | | 0.2 | |
| | | | | | Alta Mesa Holdings / Alta Mesa Finance Services Corp., 9.625%, 10/15/18 | | | 588,300 | | | | 0.3 | |
| | | | | | Arch Coal, Inc., 7.250%, 06/15/21 | | | 482,837 | | | | 0.2 | |
| | | | | | Atlas Pipeline Partners L.P. / Atlas Pipeline Finance Corp., 5.875%, 08/01/23 | | | 500,000 | | | | 0.2 | |
| | | | | | Atlas Pipeline Partners L.P. / Atlas Pipeline Finance Corp., 6.625%, 10/01/20 | | | 309,012 | | | | 0.1 | |
| | | | | | Aurora USA Oil & Gas, Inc., 7.500%, 04/01/20 | | | 759,375 | | | | 0.4 | |
| | | | | | Berry Petroleum Co., 10.250%, 06/01/14 | | | 460,995 | | | | 0.2 | |
| | | | | | BreitBurn Energy Partners L.P. / BreitBurn Finance Corp., 7.875%, 04/15/22 | | | 537,500 | | | | 0.3 | |
| | | | | | Calumet Specialty Products Partners L.P./Calumet Finance Corp., 9.375%, 05/01/19 | | | 196,875 | | | | 0.1 | |
| | | | | | Calumet Specialty Products Partners L.P./Calumet Finance Corp., 9.375%, 05/01/19 | | | 365,625 | | | | 0.2 | |
| | | | | | Calumet Specialty Products Partners L.P./Calumet Finance Corp., 9.625%, 08/01/20 | | | 453,000 | | | | 0.2 | |
| | | | | | Chaparral Energy, Inc., 7.625%, 11/15/22 | | | 274,375 | | | | 0.1 | |
| | | | | | Chaparral Energy, Inc., 8.250%, 09/01/21 | | | 164,937 | | | | 0.1 | |
| | | | | | Chaparral Energy, Inc., 9.875%, 10/01/20 | | | 237,800 | | | | 0.1 | |
| | | | | | Chesapeake Energy Corp., 6.625%, 08/15/20 | | | 219,500 | | | | 0.1 | |
| | | | | | Chesapeake Energy Corp., 6.125%, 02/15/21 | | | 881,719 | | | | 0.4 | |
| | | | | | Cimarex Energy Co., 5.875%, 05/01/22 | | | 538,750 | | | | 0.3 | |
| | | | | | Concho Resources, Inc./Midland TX, 7.000%, 01/15/21 | | | 458,575 | | | | 0.2 | |
| | | | | | Crosstex Energy L.P. / Crosstex Energy Finance Corp., 8.875%, 02/15/18 | | | 543,750 | | | | 0.3 | |
| | | | | | Eagle Rock Energy Partners L.P. / Eagle Rock Energy Finance Corp., 8.375%, 06/01/19 | | | 704,900 | | | | 0.3 | |
| | | | | | El Paso Corp., 7.250%, 06/01/18 | | | 720,542 | | | | 0.3 | |
| | | | | | Energy Transfer Equity L.P., 7.500%, 10/15/20 | | | 463,000 | | | | 0.2 | |
| | | | | | EPL Oil & Gas, Inc., 8.250%, 02/15/18 | | | 798,750 | | | | 0.4 | |
| | | | | | Foresight Energy, LLC / Foresight Energy Corp., 9.625%, 08/15/17 | | | 815,625 | | | | 0.4 | |
| | | | | | Genesis Energy L.P. / Genesis Energy Finance Corp., 5.750%, 02/15/21 | | | 1,034,375 | | | | 0.5 | |
| | | | | | Halcon Resources Corp., 8.875%, 05/15/21 | | | 1,353,125 | | | | 0.6 | |
| | | | | | Hilcorp Energy I L.P./Hilcorp Finance Co., 8.000%, 02/15/20 | | | 964,687 | | | | 0.4 | |
| | | | | | Kodiak Oil & Gas Corp., 5.500%, 01/15/21 | | | 786,563 | | | | 0.4 | |
| | | | | | Legacy Reserves L.P. / Legacy Reserves Finance Corp., 8.000%, 12/01/20 | | | 520,000 | | | | 0.2 | |
| | | | | | Linn Energy, LLC/Linn Energy Finance Corp., 6.250%, 11/01/19 | | | 559,988 | | | | 0.3 | |
| | | | | | Linn Energy, LLC/Linn Energy Finance Corp., 7.750%, 02/01/21 | | | 565,688 | | | | 0.3 | |
See Accompanying Notes to Financial Statements
9
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp., 6.500%, 08/15/21 | | $ | 308,140 | | | | 0.1 | |
| | | | | | Midstates Petroleum Co., Inc. / Midstates Petroleum Co., LLC, 10.750%, 10/01/20 | | | 696,875 | | | | 0.3 | |
| | | | | | Northern Oil and Gas, Inc., 8.000%, 06/01/20 | | | 838,000 | | | | 0.4 | |
| | | | | | Oasis Petroleum, Inc., 6.500%, 11/01/21 | | | 235,425 | | | | 0.1 | |
| | | | | | Oasis Petroleum, Inc., 7.250%, 02/01/19 | | | 441,450 | | | | 0.2 | |
| | | | | | PetroBakken Energy Ltd., 8.625%, 02/01/20 | | | 948,125 | | | | 0.4 | |
| | | | | | Plains Exploration & Production Co., 6.125%, 06/15/19 | | | 825,000 | | | | 0.4 | |
| | | | | | Plains Exploration & Production Co., 6.625%, 05/01/21 | | | 221,000 | | | | 0.1 | |
| | | | | | QR Energy L.P. / QRE Finance Corp., 9.250%, 08/01/20 | | | 479,250 | | | | 0.2 | |
| | | | | | Range Resources Corp., 5.750%, 06/01/21 | | | 377,125 | | | | 0.2 | |
| | | | | | Resolute Energy Corp., 8.500%, 05/01/20 | | | 1,149,200 | | | | 0.5 | |
| | | | | | Rex Energy Corp., 8.875%, 12/01/20 | | | 1,062,500 | | | | 0.5 | |
| | | | | | SandRidge Energy, Inc., 7.500%, 02/15/23 | | | 417,000 | | | | 0.2 | |
| | | | | | SandRidge Energy, Inc., 7.500%, 03/15/21 | | | 522,500 | | | | 0.2 | |
| | | | | | SM Energy Co., 6.500%, 01/01/23 | | | 660,000 | | | | 0.3 | |
| | | | | | Stone Energy Corp., 7.500%, 11/15/22 | | | 823,125 | | | | 0.4 | |
| | | | | | SunCoke Energy Partners L.P. / SunCoke Energy Partners Finance Corp., 7.375%, 02/01/20 | | | 528,750 | | | | 0.2 | |
| | | | | | SunCoke Energy, Inc., 7.625%, 08/01/19 | | | 421,200 | | | | 0.2 | |
| | | | | | Talos Production LLC / Talos Production Finance, Inc., 9.750%, 02/15/18 | | | 497,500 | | | | 0.2 | |
| | | | | | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp., 6.875%, 02/01/21 | | | 462,000 | | | | 0.2 | |
| | | | | | Vanguard Natural Resources, LLC, 7.875%, 04/01/20 | | | 862,000 | | | | 0.4 | |
| | | | | | W&T Offshore, Inc., 8.500%, 06/15/19 | | | 785,508 | | | | 0.4 | |
| | | | | | Western Refining, Inc., 6.250%, 04/01/21 | | | 1,023,750 | | | | 0.5 | |
| | | | | | Westmoreland Coal Co/Westmoreland Partners, 10.750%, 02/01/18 | | | 505,200 | | | | 0.2 | |
| | | | | | | | | 32,848,541 | | | | 15.1 | |
|
| |
| | | | | | Ally Financial, Inc., 3.125%, 01/15/16 | | | 506,627 | | | | 0.2 | |
| | | | | | Ally Financial, Inc., 7.500%, 09/15/20 | | | 611,875 | | | | 0.3 | |
| | | | | | Ally Financial, Inc., 8.000%, 03/15/20 | | | 916,912 | | | | 0.4 | |
| | | | | | Ally Financial, Inc., 8.300%, 02/12/15 | | | 506,187 | | | | 0.2 | |
| | | | | | Alphabet Holding Co., Inc., 7.750%, 11/01/17 | | | 783,750 | | | | 0.4 | |
| | | | | | American General Finance Corp., 5.400%, 12/01/15 | | | 557,550 | | | | 0.3 | |
| | | | | | Ashtead Capital, Inc., 6.500%, 07/15/22 | | | 818,438 | | | | 0.4 | |
| | | | | | Boyd Acquisition Sub, LLC/Boyd Acquisition Finance Corp., 8.375%, 02/15/18 | | | 212,500 | | | | 0.1 | |
| | | | | | CIT Group, Inc., 4.250%, 08/15/17 | | | 546,000 | | | | 0.2 | |
| | | | | | CIT Group, Inc., 5.250%, 03/15/18 | | | 542,500 | | | | 0.2 | |
| | | | | | CIT Group, Inc., 5.375%, 05/15/20 | | | 275,625 | | | | 0.1 | |
| | | | | | CIT Group, Inc., 5.000%, 05/15/17 | | | 269,375 | | | | 0.1 | |
| | | | | | CIT Group, Inc., 5.000%, 08/15/22 | | | 332,777 | | | | 0.2 | |
| | | | | | CIT Group, Inc., 6.625%, 04/01/18 | | | 332,050 | | | | 0.1 | |
| | | | | | CNG Holdings, Inc./OH, 9.375%, 05/15/20 | | | 641,063 | | | | 0.3 | |
| | | | | | Felcor Lodging L.P., 5.625%, 03/01/23 | | | 408,500 | | | | 0.2 | |
| | | | | | Felcor Lodging L.P., 10.000%, 10/01/14 | | | 212,153 | | | | 0.1 | |
| | | | | | Fifth Third Capital Trust IV, 6.500%, 04/15/37 | | | 503,125 | | | | 0.2 | |
| | | | | | Geo Group, Inc./The, 5.125%, 04/01/23 | | | 506,250 | | | | 0.2 | |
| | | | | | International Lease Finance Corp., 5.875%, 08/15/22 | | | 556,443 | | | | 0.3 | |
| | | | | | International Lease Finance Corp., 6.250%, 05/15/19 | | | 561,000 | | | | 0.3 | |
| | | | | | International Lease Finance Corp., 8.250%, 12/15/20 | | | 576,925 | | | | 0.3 | |
| | | | | | Kemet Corp., 10.500%, 05/01/18 | | | 743,725 | | | | 0.3 | |
| | | | | | Realogy Corp., 7.625%, 01/15/20 | | | 566,250 | | | | 0.3 | |
| | | | | | Realogy Corp., 7.875%, 02/15/19 | | | 847,000 | | | | 0.4 | |
| | | | | | Regions Bank/Birmingham AL, 6.450%, 06/26/37 | | | 543,750 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
10
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | RHP Hotel Properties L.P. / RHP Finance Corp., 5.000%, 04/15/21 | | $ | 1,005,000 | | | | 0.5 | |
| | | | | | Rivers Pittsburgh Borrower L.P./Rivers Pittsburgh Finance Corp., 9.500%, 06/15/19 | | | 548,750 | | | | 0.2 | |
| | | | | | Shea Homes L.P. / Shea Homes Funding Corp., 8.625%, 05/15/19 | | | 845,625 | | | | 0.4 | |
| | | | | | Springleaf Finance Corp., 6.900%, 12/15/17 | | | 400,431 | | | | 0.2 | |
| | | | | | Tops Holding Corp. / Tops Markets, LLC, 8.875%, 12/15/17 | | | 551,250 | | | | 0.3 | |
| | | | | | | | | 17,229,406 | | | | 7.9 | |
|
| |
| | | | | | Acadia Healthcare Co., Inc., 6.125%, 03/15/21 | | | 518,750 | | | | 0.2 | |
| | | | | | Amsurg Corp., 5.625%, 11/30/20 | | | 1,057,500 | | | | 0.5 | |
| | | | | | Biomet, Inc., 6.500%, 08/01/20 | | | 505,875 | | | | 0.2 | |
| | | | | | CDRT Holding Corp., 9.250%, 10/01/17 | | | 516,037 | | | | 0.2 | |
| | | | | | CHS/Community Health Systems, Inc., 5.125%, 08/15/18 | | | 630,000 | | | | 0.3 | |
| | | | | | CHS/Community Health Systems, Inc., 7.125%, 07/15/20 | | | 206,387 | | | | 0.1 | |
| | | | | | CHS/Community Health Systems, Inc., 8.000%, 11/15/19 | | | 278,125 | | | | 0.1 | |
| | | | | | DaVita, Inc., 6.375%, 11/01/18 | | | 154,606 | | | | 0.1 | |
| | | | | | DaVita, Inc., 6.625%, 11/01/20 | | | 810,653 | | | | 0.4 | |
| | | | | | Grifols, Inc., 8.250%, 02/01/18 | | | 718,250 | | | | 0.3 | |
| | | | | | HCA Holdings, Inc., 7.750%, 05/15/21 | | | 1,568,331 | | | | 0.7 | |
| | | | | | HCA, Inc., 7.250%, 09/15/20 | | | 399,150 | | | | 0.2 | |
| | | | | | HCA, Inc., 7.500%, 02/15/22 | | | 1,498,250 | | | | 0.7 | |
| | | | | | HCA, Inc., 7.875%, 02/15/20 | | | 116,287 | | | | 0.1 | |
| | | | | | Health Management Associates, Inc., 7.375%, 01/15/20 | | | 490,613 | | | | 0.2 | |
| | | | | | Healthsouth Corp., 7.250%, 10/01/18 | | | 382,123 | | | | 0.2 | |
| | | | | | Healthsouth Corp., 8.125%, 02/15/20 | | | 287,950 | | | | 0.1 | |
| | | | | | Hologic, Inc., 6.250%, 08/01/20 | | | 427,500 | | | | 0.2 | |
| | | | | | IASIS Healthcare, LLC / IASIS Capital Corp., 8.375%, 05/15/19 | | | 475,965 | | | | 0.2 | |
| | | | | | Immucor, Inc., 11.125%, 08/15/19 | | | 549,600 | | | | 0.3 | |
| | | | | | MedAssets, Inc., 8.000%, 11/15/18 | | | 460,950 | | | | 0.2 | |
| | | | | | Omnicare, Inc., 7.750%, 06/01/20 | | | 689,750 | | | | 0.3 | |
| | | | | | Physio-Control International, Inc., 9.875%, 01/15/19 | | | 849,375 | | | | 0.4 | |
| | | | | | Radnet Management, Inc., 10.375%, 04/01/18 | | | 581,363 | | | | 0.3 | |
| | | | | | STHI Holding Corp., 8.000%, 03/15/18 | | | 307,300 | | | | 0.1 | |
| | | | | | Tenet Healthcare Corp., 6.250%, 11/01/18 | | | 439,931 | | | | 0.2 | |
| | | | | | U.S. Oncology Escrow, 87.500%, 12/31/49 | | | — | | | | — | |
| | | | | | United Surgical Partners International, Inc., 9.000%, 04/01/20 | | | 995,313 | | | | 0.5 | |
| | | | | | Universal Hospital Services, Inc., 7.625%, 08/15/20 | | | 810,000 | | | | 0.4 | |
| | | | | | Valeant Pharmaceuticals International, 6.750%, 08/15/21 | | | 561,750 | | | | 0.3 | |
| | | | | | Vanguard Health Holding Co. II, LLC / Vanguard Holding Co. II, Inc., 7.750%, 02/01/19 | | | 483,750 | | | | 0.2 | |
| | | | | | VPI Escrow Corp., 6.375%, 10/15/20 | | | 518,788 | | | | 0.2 | |
| | | | | | | | | 18,290,222 | | | | 8.4 | |
|
| |
| | | | | | ADS Waste Holdings, Inc., 8.250%, 10/01/20 | | | 757,750 | | | | 0.3 | |
| | | | | | Ainsworth Lumber Co. Ltd., 7.500%, 12/15/17 | | | 546,875 | | | | 0.3 | |
| | | | | | Amsted Industries, Inc., 8.125%, 03/15/18 | | | 491,400 | | | | 0.2 | |
| | | | | | Anixter, Inc., 5.625%, 05/01/19 | | | 709,887 | | | | 0.3 | |
| | | | | | Belden, Inc., 5.500%, 09/01/22 | | | 618,000 | | | | 0.3 | |
| | | | | | BOE Merger Corp., 9.500%, 11/01/17 | | | 810,937 | | | | 0.4 | |
| | | | | | Chrysler Group, LLC/CG Co-Issuer, Inc., 8.250%, 06/15/21 | | | 897,000 | | | | 0.4 | |
| | | | | | Cleaver-Brooks, Inc., 8.750%, 12/15/19 | | | 540,625 | | | | 0.2 | |
| | | | | | Coleman Cable, Inc., 9.000%, 02/15/18 | | | 304,500 | | | | 0.1 | |
| | | | | | Covanta Holding Corp., 7.250%, 12/01/20 | | | 741,488 | | | | 0.3 | |
| | | | | | Dematic SA / DH Services Luxembourg Sarl, 7.750%, 12/15/20 | | | 783,750 | | | | 0.4 | |
| | | | | | Ducommun, Inc., 9.750%, 07/15/18 | | | 397,800 | | | | 0.2 | |
| | | | | | Florida East Coast Railway Corp., 8.125%, 02/01/17 | | | 651,887 | | | | 0.3 | |
| | | | | | H&E Equipment Services, Inc., 7.000%, 09/01/22 | | | 663,000 | | | | 0.3 | |
| | | | | | HD Supply, Inc., 7.500%, 07/15/20 | | | 527,500 | | | | 0.2 | |
| | | | | | HD Supply, Inc., 10.500%, 01/15/21 | | | 521,875 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
11
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Interface, Inc., 7.625%, 12/01/18 | | $ | 119,625 | | | | 0.1 | |
| | | | | | Isabelle Acquisition Sub, Inc., 10.000%, 11/15/18 | | | 556,250 | | | | 0.3 | |
| | | | | | JM Huber Corp., 9.875%, 11/01/19 | | | 1,001,000 | | | | 0.5 | |
| | | | | | Logo Merger Sub Corp., 8.375%, 10/15/20 | | | 780,000 | | | | 0.4 | |
| | | | | | Martin Midstream Partners L.P. / Martin Midstream Finance Corp., 8.875%, 04/01/18 | | | 549,720 | | | | 0.3 | |
| | | | | | Mcron Finance Sub, LLC / Mcron Finance Corp., 8.375%, 05/15/19 | | | 316,350 | | | | 0.1 | |
| | | | | | Milacron LLC / Mcron Finance Corp., 7.750%, 02/15/21 | | | 519,375 | | | | 0.2 | |
| | | | | | Nortek, Inc., 8.500%, 04/15/21 | | | 556,250 | | | | 0.3 | |
| | | | | | Polymer Group, Inc., 7.750%, 02/01/19 | | | 487,275 | | | | 0.2 | |
| | | | | | Sequa Corp., 7.000%, 12/15/17 | | | 254,375 | | | | 0.1 | |
| | | | | | Severstal, 10.250%, 02/15/18 | | | 407,813 | | | | 0.2 | |
| | | | | | Silver II Borrower / Silver II US Holdings, LLC, 7.750%, 12/15/20 | | | 535,000 | | | | 0.2 | |
| | | | | | SPX Corp., 6.875%, 09/01/17 | | | 346,425 | | | | 0.2 | |
| | | | | | United Rentals North America, Inc., 6.125%, 06/15/23 | | | 107,500 | | | | 0.1 | |
| | | | | | United Rentals North America, Inc., 5.750%, 07/15/18 | | | 179,644 | | | | 0.1 | |
| | | | | | United Rentals North America, Inc., 7.375%, 05/15/20 | | | 429,275 | | | | 0.2 | |
| | | | | | United Rentals North America, Inc., 7.625%, 04/15/22 | | | 319,913 | | | | 0.1 | |
| | | | | | Watco Cos LLC / Watco Finance Corp., 6.375%, 04/01/23 | | | 1,033,750 | | | | 0.5 | |
| | | | | | | | | 18,463,814 | | | | 8.5 | |
|
| Information Technology 5.6% |
| | | | | | Aspect Software, Inc., 10.625%, 05/15/17 | | | 863,550 | | | | 0.4 | |
| | | | | | Audatex North America, Inc., 6.750%, 06/15/18 | | | 431,000 | | | | 0.2 | |
| | | | | | CDW, LLC / CDW Finance Corp., 8.500%, 04/01/19 | | | 588,656 | | | | 0.3 | |
| | | | | | CDW, LLC / CDW Finance Corp., 12.535%, 10/12/17 | | | 207,120 | | | | 0.1 | |
| | | | | | CyrusOne L.P. / CyrusOne Finance Corp., 6.375%, 11/15/22 | | | 526,250 | | | | 0.2 | |
| | | | | | Emdeon, Inc., 11.000%, 12/31/19 | | | 630,837 | | | | 0.3 | |
| | | | | | Epicor Software Corp., 8.625%, 05/01/19 | | | 815,625 | | | | 0.4 | |
| | | | | | Equinix, Inc., 4.875%, 04/01/20 | | | 455,625 | | | | 0.2 | |
| | | | | | First Data Corp., 6.750%, 11/01/20 | | | 838,000 | | | | 0.4 | |
| | | | | | First Data Corp., 8.250%, 01/15/21 | | | 151,525 | | | | 0.1 | |
| | | | | | First Data Corp., 8.750%, 01/15/22 | | | 155,125 | | | | 0.1 | |
| | | | | | First Data Corp., 9.875%, 09/24/15 | | | 17,595 | | | | 0.0 | |
| | | | | | First Data Corp., 10.625%, 06/15/21 | | | 1,016,250 | | | | 0.5 | |
| | | | | | Freescale Semiconductor, Inc., 8.050%, 02/01/20 | | | 536,563 | | | | 0.2 | |
| | | | | | IMS Health, Inc., 6.000%, 11/01/20 | | | 783,750 | | | | 0.4 | |
| | | | | | Infor US, Inc., 9.375%, 04/01/19 | | | 404,256 | | | | 0.2 | |
| | | | | | Infor US, Inc., 11.500%, 07/15/18 | | | 590,000 | | | | 0.3 | |
| | | | | | Interface Security Systems Holdings, Inc. / Interface Security Systems LLC, 9.250%, 01/15/18 | | | 518,750 | | | | 0.2 | |
| | | | | | NXP BV / NXP Funding LLC, 5.750%, 03/15/23 | | | 766,875 | | | | 0.3 | |
| | | | | | Seagate HDD Cayman, 6.875%, 05/01/20 | | | 270,000 | | | | 0.1 | |
| | | | | | Seagate HDD Cayman, 7.750%, 12/15/18 | | | 38,544 | | | | 0.0 | |
| | | | | | SSI Investments II/SSI Co-Issuer, LLC, 11.125%, 06/01/18 | | | 585,375 | | | | 0.3 | |
| | | | | | SunGard Data Systems, Inc., 7.375%, 11/15/18 | | | 424,625 | | | | 0.2 | |
| | | | | | SunGard Data Systems, Inc., 7.625%, 11/15/20 | | | 168,756 | | | | 0.1 | |
| | | | | | Unisys Corp., 6.250%, 08/15/17 | | | 326,250 | | | | 0.1 | |
| | | | | | | | | 12,110,902 | | | | 5.6 | |
|
| |
| | | | | | Aleris International, Inc., 7.875%, 11/01/20 | | | 700,375 | | | | 0.3 | |
| | | | | | ArcelorMittal, 6.000%, 03/01/21 | | | 1,053,612 | | | | 0.5 | |
| | | | | | Ardagh Packaging Finance Plc, 9.125%, 10/15/20 | | | 278,125 | | | | 0.1 | |
| | | | | | Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc., 4.875%, 11/15/22 | | | 198,000 | | | | 0.1 | |
| | | | | | Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc., 7.000%, 11/15/20 | | | 515,000 | | | | 0.2 | |
| | | | | | BC Mountain LLC / BC Mountain Finance, Inc., 7.000%, 02/01/21 | | | 531,250 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
12
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Boise Cascade, LLC/Boise Cascade Finance Corp., 6.375%, 11/01/20 | | $ | 531,875 | | | | 0.2 | |
| | | | | | Bombardier, Inc., 4.250%, 01/15/16 | | | 521,250 | | | | 0.2 | |
| | | | | | Bombardier, Inc., 6.125%, 01/15/23 | | | 536,887 | | | | 0.2 | |
| | | | | | Building Materials Corp. of America, 7.500%, 03/15/20 | | | 367,662 | | | | 0.2 | |
| | | | | | Building Materials Corp. of America, 6.750%, 05/01/21 | | | 180,675 | | | | 0.1 | |
| | | | | | Chemtura Corp., 7.875%, 09/01/18 | | | 455,700 | | | | 0.2 | |
| | | | | | Consolidated Container Co., LLC/Consolidated Container Capital, Inc., 10.125%, 07/15/20 | | | 550,000 | | | | 0.3 | |
| | | | | | Eagle Spinco, Inc., 4.625%, 02/15/21 | | | 372,756 | | | | 0.2 | |
| | | | | | FMG Resources August 2006 Pty Ltd., 6.000%, 04/01/17 | | | 516,250 | | | | 0.2 | |
| | | | | | FMG Resources August 2006 Pty Ltd., 6.875%, 04/01/22 | | | 262,812 | | | | 0.1 | |
| | | | | | Gibraltar Industries, Inc., 6.250%, 02/01/21 | | | 798,750 | | | | 0.4 | |
| | | | | | Hexion US Finance Corp., 6.625%, 04/15/20 | | | 453,375 | | | | 0.2 | |
| | | | | | Huntsman International LLC, 4.875%, 11/15/20 | | | 505,625 | | | | 0.2 | |
| | | | | | Huntsman International LLC, 4.875%, 11/15/20 | | | 252,813 | | | | 0.1 | |
| | | | | | Ineos Group Holdings PLC, 8.500%, 02/15/16 | | | 510,000 | | | | 0.2 | |
| | | | | | Inmet Mining Corp., 7.500%, 06/01/21 | | | 542,500 | | | | 0.3 | |
| | | | | | Kraton Polymers, LLC/Kraton Polymers Capital Corp., 6.750%, 03/01/19 | | | 388,500 | | | | 0.2 | |
| | | | | | Lender Processing Services, Inc., 5.750%, 04/15/23 | | | 785,625 | | | | 0.4 | |
| | | | | | Longview Fibre Paper & Packaging, Inc., 8.000%, 06/01/16 | | | 430,500 | | | | 0.2 | |
| | | | | | Louisiana-Pacific Corp., 7.500%, 06/01/20 | | | 456,000 | | | | 0.2 | |
| | | | | | LyondellBasell Industries NV, 6.000%, 11/15/21 | | | 999,600 | | | | 0.5 | |
| | | | | | Momentive Performance Materials, Inc., 8.875%, 10/15/20 | | | 517,500 | | | | 0.2 | |
| | | | | | New Gold, Inc., 7.000%, 04/15/20 | | | 540,000 | | | | 0.3 | |
| | | | | | Orion Engineered Carbons Finance & Co. SCA, 9.250%, 08/01/19 | | | 507,500 | | | | 0.2 | |
| | | | | | PH Glatfelter Co., 5.375%, 10/15/20 | | | 421,000 | | | | 0.2 | |
| | | | | | Plastipak Holdings, Inc., 10.625%, 08/15/19 | | | 333,500 | | | | 0.2 | |
| | | | | | PolyOne Corp., 5.250%, 03/15/23 | | | 202,500 | | | | 0.1 | |
| | | | | | PolyOne Corp., 7.375%, 09/15/20 | | | 305,250 | | | | 0.1 | |
| | | | | | PQ Corp., 8.750%, 05/01/18 | | | 802,500 | | | | 0.4 | |
| | | | | | Prince Mineral Holding Corp., 11.500%, 12/15/19 | | | 561,250 | | | | 0.3 | |
| | | | | | Rain CII Carbon, LLC and CII Carbon Corp., 8.000%, 12/01/18 | | | 326,188 | | | | 0.2 | |
| | | | | | Rain CII Carbon, LLC / CII Carbon Corp., 8.250%, 01/15/21 | | | 542,500 | | | | 0.3 | |
| | | | | | Roofing Supply Group, LLC / Roofing Supply Finance, Inc., 10.000%, 06/01/20 | | | 851,250 | | | | 0.4 | |
| | | | | | Sealed Air Corp., 5.250%, 04/01/23 | | | 251,563 | | | | 0.1 | |
| | | | | | Steel Dynamics, Inc., 5.250%, 04/15/23 | | | 101,625 | | | | 0.0 | |
| | | | | | Taminco Acquisition Corp., 9.125%, 12/15/17 | | | 507,500 | | | | 0.2 | |
| | | | | | Taseko Mines Ltd., 7.750%, 04/15/19 | | | 1,012,500 | | | | 0.5 | |
| | | | | | Unifrax I LLC / Unifrax Holding Co., 7.500%, 02/15/19 | | | 517,500 | | | | 0.2 | |
| | | | | | US Coatings Acquisition, Inc. / Flash Dutch 2 BV, 7.375%, 05/01/21 | | | 792,188 | | | | 0.4 | |
| | | | | | | | | 22,789,331 | | | | 10.5 | |
|
| Telecommunication Services 7.3% |
| | | | | | CenturyLink, Inc., 5.625%, 04/01/20 | | | 768,374 | | | | 0.3 | |
| | | | | | Cincinnati Bell, Inc., 8.375%, 10/15/20 | | | 186,010 | | | | 0.1 | |
| | | | | | Cincinnati Bell, Inc., 8.750%, 03/15/18 | | | 299,250 | | | | 0.1 | |
| | | | | | Cricket Communications, Inc., 7.750%, 10/15/20 | | | 501,250 | | | | 0.2 | |
| | | | | | Cricket Communications, Inc., 7.750%, 05/15/16 | | | 323,950 | | | | 0.1 | |
| | | | | | Frontier Communications Corp., 8.500%, 04/15/20 | | | — | | | | — | |
| | | | | | Frontier Communications Corp., 7.625%, 04/15/24 | | | 1,031,250 | | | | 0.5 | |
| | | | | | Frontier Communications Corp., 8.250%, 04/15/17 | | | 236,000 | | | | 0.1 | |
| | | | | | Intelsat Bermuda Ltd., 11.500%, 02/04/17 | | | 564,586 | | | | 0.3 | |
| | | | | | Intelsat Bermuda Ltd., 11.250%, 02/04/17 | | | 426,500 | | | | 0.2 | |
| | | | | | Intelsat Bermuda Ltd., 11.500%, 02/04/17 | | | 265,625 | | | | 0.1 | |
| | | | | | Intelsat Jackson Holdings SA, 7.250%, 10/15/20 | | | 551,250 | | | | 0.3 | |
See Accompanying Notes to Financial Statements
13
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Intelsat Jackson Holdings SA, 7.500%, 04/01/21 | | $ | 491,700 | | | | 0.2 | |
| | | | | | Intelsat Luxembourg SA, 7.750%, 06/01/21 | | | 510,000 | | | | 0.2 | |
| | | | | | iPCS, Inc., 3.549%, 05/01/14 | | | 18,069 | | | | 0.0 | |
| | | | | | Lynx II Corp., 6.375%, 04/15/23 | | | 789,375 | | | | 0.4 | |
| | | | | | MetroPCS Wireless, Inc., 6.250%, 04/01/21 | | | 796,575 | | | | 0.4 | |
| | | | | | MetroPCS Wireless, Inc., 6.625%, 11/15/20 | | | 660,712 | | | | 0.3 | |
| | | | | | MetroPCS Wireless, Inc., 6.625%, 04/01/23 | | | 798,525 | | | | 0.4 | |
| | | | | | Sable International Finance Ltd., 8.750%, 02/01/20 | | | 567,500 | | | | 0.3 | |
| | | | | | Sprint Capital Corp., 6.875%, 11/15/28 | | | 1,438,500 | | | | 0.7 | |
| | | | | | Sprint Nextel Corp., 6.000%, 11/15/22 | | | 516,250 | | | | 0.2 | |
| | | | | | Sprint Nextel Corp., 7.000%, 03/01/20 | | | 583,750 | | | | 0.3 | |
| | | | | | Sprint Nextel Corp., 9.000%, 11/15/18 | | | 823,769 | | | | 0.4 | |
| | | | | | Telesat Canada / Telesat, LLC, 6.000%, 05/15/17 | | | 787,500 | | | | 0.4 | |
| | | | | | Wind Acquisition Finance S.A., 7.250%, 02/15/18 | | | 209,250 | | | | 0.1 | |
| | | | | | Wind Acquisition Finance S.A., 7.250%, 02/15/18 | | | 521,875 | | | | 0.2 | |
| | | | | | Wind Acquisition Holdings Finance SA, 12.250%, 07/15/17 | | | 521,875 | | | | 0.2 | |
| | | | | | Windstream Corp., 7.000%, 03/15/19 | | | 687,588 | | | | 0.3 | |
| | | | | | | | | 15,876,858 | | | | 7.3 | |
|
| |
| | | | | | AES Corp., 7.375%, 07/01/21 | | | 361,150 | | | | 0.2 | |
| | | | | | Calpine Corp., 7.500%, 02/15/21 | | | 940,432 | | | | 0.4 | |
| | | | | | Calpine Corp., 7.875%, 07/31/20 | | | 451,000 | | | | 0.2 | |
| | | | | | DPL, Inc., 6.500%, 10/15/16 | | | 530,000 | | | | 0.2 | |
| | | | | | DPL, Inc., 7.250%, 10/15/21 | | | 1,065,000 | | | | 0.5 | |
| | | | | | Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc., 10.000%, 12/01/20 | | | 542,400 | | | | 0.3 | |
| | | | | | Mirant Americas Generation, LLC, 9.125%, 05/01/31 | | | 533,188 | | | | 0.3 | |
| | | | | | NRG Energy, Inc., 7.625%, 05/15/19 | | | 249,550 | | | | 0.1 | |
| | | | | | NRG Energy, Inc., 7.875%, 05/15/21 | | | 257,025 | | | | 0.1 | |
| | | | | | | | | 4,929,745 | | | | 2.3 | |
| |
| | | | | | Total Corporate Bonds/Notes
(Cost $193,093,359) | | | 205,617,089 | | | | 94.6 | |
| |
ASSET-BACKED SECURITIES 0.5% |
| Other Asset-Backed Securities 0.5% |
| | | | | | Castle Garden Funding, 6.560%, 10/27/20 | | | 1,077,279 | | | | 0.5 | |
| |
| | | | | | Total Asset-Backed Securities
(Cost $997,500) | | | 1,077,279 | | | | 0.5 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
|
| Consumer Discretionary 0.0% |
| | | | | | | | | 2,243 | | | | 0 .0 | |
| | | | | | American Media, Inc., Stock Certificates | | | — | | | | — | |
| |
| | | | | | Total Common Stock
(Cost $136,656) | | | 2,243 | | | | 0.0 | |
| |
| | | | | | Total Long-Term Investments
(Cost $194,227,515) | | | 206,696,611 | | | | 95.1 | |
| |
SHORT-TERM INVESTMENTS 4.5% |
| |
| | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $9,861,400) | | | 9,861,400 | | | | 4.5 | |
| |
| | | | | | Total Short-Term Investments
(Cost $9,861,400) | | | 9,861,400 | | | | 4.5 | |
| |
| | | | | | Total Investments in Securities
(Cost $204,088,915) | | $ | 216,558,011 | | | | 99 .6 | |
| | | | | | Assets in Excess of
Other Liabilities | | | 944,303 | | | | 0.4 | |
| | | | | | | | $ | 217,502,314 | | | | 100.0 | |
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. |
| @ | | Non-income producing security |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
See Accompanying Notes to Financial Statements
14
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING HIGH YIELD BOND FUND
| | | Cost for federal income tax purposes is $204,092,266. |
Net unrealized appreciation consists of: | | | | | | |
Gross Unrealized Appreciation | | | | $ | 12,944,708 | |
Gross Unrealized Depreciation | | | | | (478,963 | ) |
Net Unrealized Appreciation | | | | $ | 12,465,745 | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of March 31, 2013 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
March 31, 2013
|
|---|
| | | | | | | | | | | | | | | | | | |
Investments, at fair value | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | $ | — | | | $ | — | | | $ | 2,243 | | | $ | 2,243 | |
| | | | | — | | | | — | | | | 2,243 | | | | 2,243 | |
| | | | | — | | | | 205,617,089 | | | | — | | | | 205,617,089 | |
| | | | | — | | | | 1,077,279 | | | | — | | | | 1,077,279 | |
| | | | | 9,861,400 | | | | — | | | | — | | | | 9,861,400 | |
Total Investments, at fair value | | | | $ | 9,861,400 | | | $ | 206,694,368 | | | $ | 2,243 | | | $ | 216,558,011 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
15
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
CORPORATE BONDS/NOTES 27.4% |
| Consumer Discretionary 1.9% |
| | | | | | Cablevision Systems Corp., 8.625%, 09/15/17 | | $ | 865,800 | | | | 0.1 | |
| | | | | | Carlson Wagonlit BV, 6.875%, 06/15/19 | | | 1,178,437 | | | | 0.1 | |
| | | | | | CC Holdings GS V LLC, 2.381%, 12/15/17 | | | 1,033,228 | | | | 0.1 | |
| | | | | | DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 2.400%, 03/15/17 | | | 2,273,811 | | | | 0.2 | |
| | | | | | DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 3.800%, 03/15/22 | | | 686,617 | | | | 0.1 | |
| | | | | | DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 5.150%, 03/15/42 | | | 1,457,329 | | | | 0.1 | |
| | | | | | Hyatt Hotels Corp., 6.875%, 08/15/19 | | | 2,709,210 | | | | 0.2 | |
| | | | | | Macy’s Retail Holdings, Inc., 2.875%, 02/15/23 | | | 1,631,579 | | | | 0.2 | |
| | | | | | Macy’s Retail Holdings, Inc., 4.300%, 02/15/43 | | | 1,160,655 | | | | 0.1 | |
| | | | | | Mediacom LLC / Mediacom Capital Corp., 7.250%, 02/15/22 | | | 1,132,625 | | | | 0.1 | |
| | | | | | NBCUniversal Media, LLC, 4.450%, 01/15/43 | | | 1,141,667 | | | | 0.1 | |
| | | | | | News America, Inc., 6.650%, 11/15/37 | | | 1,149,438 | | | | 0.1 | |
| | | | | | Suburban Propane Partners L.P./Suburban Energy Finance Corp., 7.375%, 08/01/21 | | | 406,452 | | | | 0.0 | |
| | | | | | Time Warner, Inc., 6.500%, 11/15/36 | | | 1,514,434 | | | | 0.1 | |
| | | | | | Toll Brothers Finance Corp., 6.750%, 11/01/19 | | | 1,011,696 | | | | 0.1 | |
| | | | | | WPP Finance 2010, 5.125%, 09/07/42 | | | 1,279,570 | | | | 0.1 | |
| | | | | | XM Satellite Radio, Inc., 7.625%, 11/01/18 | | | 1,053,313 | | | | 0.1 | |
| | | | | | | | | 21,685,861 | | | | 1.9 | |
|
| |
| | | | | | Avon Products, Inc., 4.600%, 03/15/20 | | | 1,331,589 | | | | 0.1 | |
| | | | | | Avon Products, Inc., 5.000%, 03/15/23 | | | 1,315,833 | | | | 0.1 | |
| | | | | | Constellation Brands, Inc., 7.250%, 05/15/17 | | | 1,432,975 | | | | 0.1 | |
| | | | | | Hawk Acquisition Sub, Inc., 4.250%, 10/15/20 | | | 1,423,550 | | | | 0.1 | |
| | | | | | JBS USA LLC/JBS USA Finance, Inc., 8.250%, 02/01/20 | | | 674,962 | | | | 0.1 | |
| | | | | | Kraft Foods Group, Inc., 5.000%, 06/04/42 | | | 876,675 | | | | 0.1 | |
| | | | | | Molson Coors Brewing Co., 5.000%, 05/01/42 | | | — | | | | — | |
| | | | | | Reynolds American, Inc., 4.750%, 11/01/42 | | | 550,722 | | | | 0.1 | |
| | | | | | Walgreen Co., 4.400%, 09/15/42 | | | 1,462,070 | | | | 0.1 | |
| | | | | | | | | 9,068,376 | | | | 0.8 | |
|
| |
| | | | | | Alpha Natural Resources, Inc., 6.250%, 06/01/21 | | | 746,625 | | | | 0.1 | |
| | | | | | Alpha Natural Resources, Inc., 6.000%, 06/01/19 | | | 185,500 | | | | 0.0 | |
| | | | | | Anadarko Petroleum Corp., 6.375%, 09/15/17 | | | 1,039,882 | | | | 0.1 | |
| | | | | | Chesapeake Energy Corp., 6.625%, 08/15/20 | | | 411,563 | | | | 0.0 | |
| | | | | | Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc., 6.625%, 11/15/19 | | | 336,375 | | | | 0.0 | |
| | | | | | Dolphin Energy Ltd., 5.500%, 12/15/21 | | | 1,699,886 | | | | 0.1 | |
| | | | | | Enbridge Energy Partners L.P., 4.200%, 09/15/21 | | | 563,078 | | | | 0.1 | |
| | | | | | Enbridge Energy Partners, 9.875%, 03/01/19 | | | 2,081,266 | | | | 0.2 | |
| | | | | | Energy Transfer Equity L.P., 7.500%, 10/15/20 | | | 1,238,525 | | | | 0.1 | |
| | | | | | Energy Transfer Partners L.P., 4.650%, 06/01/21 | | | 1,327,743 | | | | 0.1 | |
| | | | | | Energy Transfer Partners L.P., 6.050%, 06/01/41 | | | 2,256,981 | | | | 0.2 | |
| | | | | | Energy Transfer Partners, 9.700%, 03/15/19 | | | 1,679,699 | | | | 0.1 | |
| | | | | | Enterprise Products Operating, LLC, 4.450%, 02/15/43 | | | 967,210 | | | | 0.1 | |
| | | | | | FMC Technologies, Inc., 3.450%, 10/01/22 | | | 1,842,376 | | | | 0.2 | |
| | | | | | Gazprom OAO Via Gaz Capital SA, 6.212%, 11/22/16 | | | 1,395,375 | | | | 0.1 | |
| | | | | | Greater Ohio Ethanol, LLC, 6.301%, 12/31/13 | | | — | | | | — | |
| | | | | | Marathon Petroleum Corp., 6.500%, 03/01/41 | | | 2,816,934 | | | | 0.2 | |
| | | | | | Murphy Oil Corp., 2.500%, 12/01/17 | | | 1,162,575 | | | | 0.1 | |
| | | | | | Nexen, Inc., 7.500%, 07/30/39 | | | 2,253,147 | | | | 0.2 | |
| | | | | | ONEOK Partners L.P., 2.000%, 10/01/17 | | | 657,839 | | | | 0.1 | |
| | | | | | ONEOK Partners L.P., 3.375%, 10/01/22 | | | 1,434,204 | | | | 0.1 | |
| | | | | | Petrobras International Finance Co.—Pifco, 3.500%, 02/06/17 | | | 1,547,868 | | | | 0.1 | |
| | | | | | Phillips 66, 2.950%, 05/01/17 | | | 1,546,198 | | | | 0.1 | |
| | | | | | Phillips 66, 4.300%, 04/01/22 | | | 3,231,282 | | | | 0.3 | |
See Accompanying Notes to Financial Statements
16
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Plains Exploration & Production Co., 8.625%, 10/15/19 | | $ | 946,200 | | | | 0.1 | |
| | | | | | Reliance Holdings USA, Inc., 5.400%, 02/14/22 | | | 1,117,411 | | | | 0.1 | |
| | | | | | Sibur Securities Ltd., 3.914%, 01/31/18 | | | 987,500 | | | | 0.1 | |
| | | | | | Thai Oil PCL, 3.625%, 01/23/23 | | | 606,676 | | | | 0.1 | |
| | | | | | Transcontinental Gas Pipe Line Corp., 6.400%, 04/15/16 | | | 907,513 | | | | 0.1 | |
| | | | | | Transocean, Inc., 2.500%, 10/15/17 | | | 2,636,839 | | | | 0.2 | |
| | | | | | Transocean, Inc., 3.800%, 10/15/22 | | | 1,056,917 | | | | 0.1 | |
| | | | | | Weatherford International Ltd., 5.950%, 04/15/42 | | | 2,115,263 | | | | 0.2 | |
| | | | | | Weatherford International Ltd., 6.750%, 09/15/40 | | | 1,072,623 | | | | 0.1 | |
| | | | | | | | | 43,869,073 | | | | 3.8 | |
|
| |
| | | | | | ACE INA Holdings, Inc., 4.150%, 03/13/43 | | | 1,179,201 | | | | 0.1 | |
| | | | | | Aegon NV, 2.040%, 07/29/49 | | | 2,215,764 | | | | 0.2 | |
| | | | | | American International Group, Inc., 5.850%, 01/16/18 | | | 2,077,281 | | | | 0.2 | |
| | | | | | American International Group, Inc., 8.175%, 05/15/58 | | | 1,698,521 | | | | 0.1 | |
| | | | | | Allstate Corp., 5.200%, 01/15/42 | | | 714,448 | | | | 0.1 | |
| | | | | | American Tower Corp., 4.500%, 01/15/18 | | | 1,553,066 | | | | 0.1 | |
| | | | | | Assurant, Inc., 2.500%, 03/15/18 | | | 1,755,232 | | | | 0.2 | |
| | | | | | AvalonBay Communities, Inc., 2.950%, 09/15/22 | | | 2,175,391 | | | | 0.2 | |
| | | | | | Banco Votorantim SA, 6.250%, 05/16/16 | | | 1,705,127 | | | | 0.1 | |
| | | | | | Bank of America Corp., 3.300%, 01/11/23 | | | 2,242,687 | | | | 0.2 | |
| | | | | | Bank of America Corp., 5.700%, 01/24/22 | | | 1,129,547 | | | | 0.1 | |
| | | | | | Bank of America Corp., 8.000%, 12/29/49 | | | 1,486,449 | | | | 0.1 | |
| | | | | | Barclays Bank PLC, 7.625%, 11/21/22 | | | 1,978,535 | | | | 0.2 | |
| | | | | | BBVA US Senior SAU, 4.664%, 10/09/15 | | | 2,647,284 | | | | 0.2 | |
| | | | | | Berkshire Hathaway Finance Corp., 4.400%, 05/15/42 | | | 436,408 | | | | 0.0 | |
| | | | | | Berkshire Hathaway, Inc., 3.000%, 02/11/23 | | | 1,548,684 | | | | 0.1 | |
| | | | | | BioMed Realty L.P., 4.250%, 07/15/22 | | | 1,687,956 | | | | 0.1 | |
| | | | | | Boston Properties L.P., 3.700%, 11/15/18 | | | 853,456 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 3.375%, 03/01/23 | | | 895,665 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 3.953%, 06/15/16 | | | 1,128,038 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 4.050%, 07/30/22 | | | 1,763,881 | | | | 0.2 | |
| | | | | | Citigroup, Inc., 4.450%, 01/10/17 | | | 1,129,842 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 4.500%, 01/14/22 | | | 937,368 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 5.875%, 01/30/42 | | | 747,571 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 5.900%, 12/29/49 | | | 1,673,543 | | | | 0.1 | |
| | | | | | Citigroup, Inc., 5.950%, 12/29/49 | | | 995,122 | | | | 0.1 | |
| | | | | | Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 3.950%, 11/09/22 | | | 1,227,626 | | | | 0.1 | |
| | | | | | Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 11.000%, 12/29/49 | | | 2,234,076 | | | | 0.2 | |
| | | | | | Digital Realty Trust L.P., 3.625%, 10/01/22 | | | 1,128,492 | | | | 0.1 | |
| | | | | | Discover Bank/Greenwood DE, 8.700%, 11/18/19 | | | 336,009 | | | | 0.0 | |
| | | | | | Discover Financial Services, 6.450%, 06/12/17 | | | 430,562 | | | | 0.0 | |
| | | | | | Discover Bank/Greenwood DE, 2.000%, 02/21/18 | | | 2,058,495 | | | | 0.2 | |
| | | | | | Discover Financial Services, 3.850%, 11/21/22 | | | 830,175 | | | | 0.1 | |
| | | | | | Equity One, Inc., 3.750%, 11/15/22 | | | 1,136,499 | | | | 0.1 | |
| | | | | | Federal Realty Investment Trust, 3.000%, 08/01/22 | | | 1,025,564 | | | | 0.1 | |
| | | | | | Fifth Third Bank/Cincinnati OH, 1.450%, 02/28/18 | | | 1,708,409 | | | | 0.2 | |
| | | | | | Ford Motor Credit Co. LLC, 3.000%, 06/12/17 | | | 588,466 | | | | 0.1 | |
| | | | | | Ford Motor Credit Co., LLC, 8.125%, 01/15/20 | | | 1,349,334 | | | | 0.1 | |
| | | | | | General Electric Capital Corp., 3.150%, 09/07/22 | | | 845,898 | | | | 0.1 | |
| | | | | | General Electric Capital Corp., 3.350%, 10/17/16 | | | 564,257 | | | | 0.1 | |
| | | | | | General Electric Capital Corp., 5.300%, 02/11/21 | | | 795,055 | | | | 0.1 | |
| | | | | | General Electric Capital Corp., 6.250%, 12/15/49 | | | 1,320,533 | | | | 0.1 | |
| | | | | | General Electric Capital Corp., 7.125%, 12/15/49 | | | 1,982,147 | | | | 0.2 | |
| | | | | | Genworth Financial, Inc., 7.625%, 09/24/21 | | | 1,293,116 | | | | 0.1 | |
| | | | | | Goldman Sachs Group, Inc., 2.375%, 01/22/18 | | | 1,256,865 | | | | 0.1 | |
| | | | | | Goldman Sachs Group, Inc., 3.625%, 01/22/23 | | | 2,238,826 | | | | 0.2 | |
| | | | | | Goldman Sachs Group, Inc., 5.750%, 01/24/22 | | | 1,706,318 | | | | 0.1 | |
| | | | | | Goldman Sachs Group, Inc., 6.750%, 10/01/37 | | | 1,123,434 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
17
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Hartford Financial Services Group, Inc., 5.125%, 04/15/22 | | $ | 1,223,407 | | | | 0.1 | |
| | | | | | Hartford Financial Services Group, Inc., 6.625%, 03/30/40 | | | 761,795 | | | | 0.1 | |
| | | | | | Hartford Financial Services Group, Inc., 8.125%, 06/15/38 | | | 1,107,862 | | | | 0.1 | |
| | | | | | HBOS PLC, 6.750%, 05/21/18 | | | 1,417,417 | | | | 0.1 | |
| | | | | | Health Care REIT, Inc., 2.250%, 03/15/18 | | | 1,546,405 | | | | 0.1 | |
| | | | | | Healthcare Realty Trust, Inc., 3.750%, 04/15/23 | | | 1,004,053 | | | | 0.1 | |
| | | | | | HSBC Finance Corp., 6.676%, 01/15/21 | | | 1,542,782 | | | | 0.1 | |
| | | | | | HSBC Holdings PLC, 4.875%, 01/14/22 | | | 478,609 | | | | 0.0 | |
| | | | | | HSBC USA, Inc., 1.625%, 01/16/18 | | | 1,179,796 | | | | 0.1 | |
| | | | | | Hyundai Capital America, 4.000%, 06/08/17 | | | 969,949 | | | | 0.1 | |
| | | | | | ICICI Bank Ltd./Dubai, 4.700%, 02/21/18 | | | 4,180,802 | | | | 0.4 | |
| | | | | | International Lease Finance Corp., 7.125%, 09/01/18 | | | 1,223,660 | | | | 0.1 | |
| | | | | | Intesa Sanpaolo SpA, 3.125%, 01/15/16 | | | 776,742 | | | | 0.1 | |
| | | | | | IPIC GMTN Ltd., 3.750%, 03/01/17 | | | 600,925 | | | | 0.1 | |
| | | | | | IPIC GMTN Ltd., 5.500%, 03/01/22 | | | 932,000 | | | | 0.1 | |
| | | | | | Itau Unibanco Holding SA/Cayman Island, 5.750%, 01/22/21 | | | 347,581 | | | | 0.0 | |
| | | | | | JPMorgan Chase & Co., 3.250%, 09/23/22 | | | 4,350,253 | | | | 0.4 | |
| | | | | | JPMorgan Chase & Co., 4.500%, 01/24/22 | | | 555,920 | | | | 0.0 | |
| | | | | | JPMorgan Chase & Co., 5.400%, 01/06/42 | | | 1,660,999 | | | | 0.1 | |
| | | | | | Merrill Lynch & Co., Inc., 6.050%, 05/16/16 | | | 2,531,338 | | | | 0.2 | |
| | | | | | MetLife, Inc., 4.125%, 08/13/42 | | | 852,209 | | | | 0.1 | |
| | | | | | Metropolitan Life Global Funding I, 1.500%, 01/10/18 | | | 1,274,572 | | | | 0.1 | |
| | | | | | Morgan Stanley, 3.750%, 02/25/23 | | | 799,742 | | | | 0.1 | |
| | | | | | Morgan Stanley, 3.800%, 04/29/16 | | | 1,698,862 | | | | 0.1 | |
| | | | | | Morgan Stanley, 4.750%, 03/22/17 | | | 3,032,768 | | | | 0.3 | |
| | | | | | Morgan Stanley, 5.500%, 07/28/21 | | | 1,193,871 | | | | 0.1 | |
| | | | | | MPT Operating Partnership L.P./MPT Finance Corp., 6.375%, 02/15/22 | | | 469,800 | | | | 0.0 | |
| | | | | | Murray Street Investment Trust I, 4.647%, 03/09/17 | | | 1,784,661 | | | | 0.2 | |
| | | | | | Nordea Kredit Realkreditaktieselskab, 6.000%, 07/01/29 | | | — | | | | — | |
| | | | | | Pacific LifeCorp, 5.125%, 01/30/43 | | | 1,155,992 | | | | 0.1 | |
| | | | | | PNC Bank NA, 2.950%, 01/30/23 | | | 1,173,483 | | | | 0.1 | |
| | | | | | Post Apartment Homes L.P., 3.375%, 12/01/22 | | | 1,563,901 | | | | 0.1 | |
| | | | | | Principal Financial Group, Inc., 3.125%, 05/15/23 | | | 1,468,284 | | | | 0.1 | |
| | | | | | Prudential Financial, Inc., 5.200%, 03/15/44 | | | 1,016,327 | | | | 0.1 | |
| | | | | | Prudential Financial, Inc., 5.625%, 06/15/43 | | | 1,600,560 | | | | 0.1 | |
| | | | | | RBS Citizens Financial Group, Inc., 4.150%, 09/28/22 | | | 1,181,023 | | | | 0.1 | |
| | | | | | Regions Bank/Birmingham AL, 6.450%, 06/26/37 | | | 550,275 | | | | 0.0 | |
| | | | | | Regions Bank/Birmingham AL, 7.500%, 05/15/18 | | | 2,169,720 | | | | 0.2 | |
| | | | | | Royal Bank of Scotland Group PLC, 6.125%, 12/15/22 | | | 2,398,501 | | | | 0.2 | |
| | | | | | Simon Property Group L.P., 1.500%, 02/01/18 | | | 1,218,717 | | | | 0.1 | |
| | | | | | Simon Property Group L.P., 4.750%, 03/15/42 | | | 712,108 | | | | 0.1 | |
| | | | | | SLM Corp., 4.625%, 09/25/17 | | | 960,122 | | | | 0.1 | |
| | | | | | SLM Corp., 5.500%, 01/25/23 | | | 1,384,091 | | | | 0.1 | |
| | | | | | SLM Corp., 6.000%, 01/25/17 | | | 824,837 | | | | 0.1 | |
| | | | | | SLM Corp., 8.000%, 03/25/20 | | | 1,171,896 | | | | 0.1 | |
| | | | | | Standard Chartered PLC, 3.950%, 01/11/23 | | | 2,755,317 | | | | 0.2 | |
| | | | | | Turkiye Vakiflar Bankasi Tao, 6.000%, 11/01/22 | | | 2,060,000 | | | | 0.2 | |
| | | | | | UBS AG/Stamford CT, 7.625%, 08/17/22 | | | 1,120,054 | | | | 0.1 | |
| | | | | | Wells Fargo & Co., 1.500%, 01/16/18 | | | 1,507,290 | | | | 0.1 | |
| | | | | | Wells Fargo & Co., 3.450%, 02/13/23 | | | 1,864,672 | | | | 0.2 | |
| | | | | | | | | 134,892,173 | | | | 11.7 | |
|
| |
| | | | | | Aetna, Inc., 1.500%, 11/15/17 | | | 694,724 | | | | 0.1 | |
| | | | | | Aetna, Inc., 2.750%, 11/15/22 | | | 911,611 | | | | 0.1 | |
| | | | | | Amgen, Inc., 3.875%, 11/15/21 | | | 858,898 | | | | 0.1 | |
| | | | | | Amgen, Inc., 5.150%, 11/15/41 | | | 394,891 | | | | 0.0 | |
| | | | | | Celgene Corp., 3.250%, 08/15/22 | | | 3,316,185 | | | | 0.3 | |
| | | | | | Express Scripts Holding Co., 2.650%, 02/15/17 | | | 1,067,687 | | | | 0.1 | |
| | | | | | HCA, Inc., 7.250%, 09/15/20 | | | 1,546,706 | | | | 0.1 | |
| | | | | | Healthsouth Corp., 7.250%, 10/01/18 | | | 956,930 | | | | 0.1 | |
| | | | | | Humana, Inc., 3.150%, 12/01/22 | | | 1,142,062 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
18
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Kaiser Foundation Hospitals, 4.875%, 04/01/42 | | $ | 699,164 | | | | 0.1 | |
| | | | | | Medtronic, Inc., 2.750%, 04/01/23 | | | 869,617 | | | | 0.1 | |
| | | | | | Medtronic, Inc., 4.000%, 04/01/43 | | | 746,792 | | | | 0.1 | |
| | | | | | St Jude Medical, Inc., 3.250%, 04/15/23 | | | 1,444,206 | | | | 0.1 | |
| | | | | | St Jude Medical, Inc., 4.750%, 04/15/43 | | | 1,353,074 | | | | 0.1 | |
| | | | | | U.S. Oncology Escrow, 87.500%, 12/31/49 | | | — | | | | — | |
| | | | | | Valeant Pharmaceuticals International, 7.250%, 07/15/22 | | | 999,638 | | | | 0.1 | |
| | | | | | WellPoint, Inc., 3.700%, 08/15/21 | | | 2,307,755 | | | | 0.2 | |
| | | | | | WellPoint, Inc., 4.625%, 05/15/42 | | | 2,192,117 | | | | 0.2 | |
| | | | | | Zoetis, Inc., 1.875%, 02/01/18 | | | 1,277,222 | | | | 0.1 | |
| | | | | | Zoetis, Inc., 3.250%, 02/01/23 | | | 1,804,002 | | | | 0.1 | |
| | | | | | Zoetis, Inc., 4.700%, 02/01/43 | | | 652,991 | | | | 0.0 | |
| | | | | | | | | 25,236,272 | | | | 2.2 | |
|
| |
| | | | | | BE Aerospace, Inc., 6.875%, 10/01/20 | | | 1,366,837 | | | | 0.1 | |
| | | | | | Case New Holland, Inc., 7.875%, 12/01/17 | | | 1,380,625 | | | | 0.1 | |
| | | | | | Ford Motor Co., 4.750%, 01/15/43 | | | 548,306 | | | | 0.0 | |
| | | | | | General Electric Co., 4.125%, 10/09/42 | | | 568,910 | | | | 0.1 | |
| | | | | | Hutchison Whampoa International 12 Ltd., 6.000%, 05/29/49 | | | 1,819,000 | | | | 0.2 | |
| | | | | | Lennar Corp., 4.750%, 12/15/17 | | | 947,250 | | | | 0.1 | |
| | | | | | MDC Holdings, Inc., 6.000%, 01/15/43 | | | 2,283,916 | | | | 0.2 | |
| | | | | | Turlock Corp., 2.750%, 11/02/22 | | | 1,072,842 | | | | 0.1 | |
| | | | | | | | | 9,987,686 | | | | 0.9 | |
|
| Information Technology 1.1% |
| | | | | | Brocade Communications Systems, Inc., 6.875%, 01/15/20 | | | 1,232,000 | | | | 0.1 | |
| | | | | | eBay, Inc., 4.000%, 07/15/42 | | | 2,206,888 | | | | 0.2 | |
| | | | | | Hewlett-Packard Co., 2.600%, 09/15/17 | | | 832,615 | | | | 0.1 | |
| | | | | | Hewlett-Packard Co., 3.000%, 09/15/16 | | | 2,769,271 | | | | 0.2 | |
| | | | | | Hewlett-Packard Co., 5.400%, 03/01/17 | | | 696,565 | | | | 0.1 | |
| | | | | | Jabil Circuit, Inc., 7.750%, 07/15/16 | | | 1,344,719 | | | | 0.1 | |
| | | | | | Motorola Solutions, Inc., 3.750%, 05/15/22 | | | 1,494,017 | | | | 0.1 | |
| | | | | | Seagate Technology HDD Holdings, 6.800%, 10/01/16 | | | 947,725 | | | | 0.1 | |
| | | | | | Symantec Corp., 2.750%, 06/15/17 | | | 997,583 | | | | 0.1 | |
| | | | | | | | | 12,521,383 | | | | 1.1 | |
|
| |
| | | | | | Anglo American Capital PLC, 2.625%, 09/27/17 | | | 2,608,075 | | | | 0.2 | |
| | | | | | AngloGold Ashanti Holdings PLC, 5.125%, 08/01/22 | | | 203,248 | | | | 0.0 | |
| | | | | | Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc., 7.375%, 10/15/17 | | | 274,687 | | | | 0.0 | |
| | | | | | Cabot Corp., 3.700%, 07/15/22 | | | 2,615,448 | | | | 0.2 | |
| | | | | | EuroChem Mineral & Chemical Co. OJSC via EuroChem GI Ltd., 5.125%, 12/12/17 | | | 1,530,000 | | | | 0.1 | |
| | | | | | Freeport-McMoRan Copper & Gold, Inc., 2.375%, 03/15/18 | | | 1,658,586 | | | | 0.1 | |
| | | | | | Freeport-McMoRan Copper & Gold, Inc., 3.875%, 03/15/23 | | | 1,527,558 | | | | 0.1 | |
| | | | | | Freeport-McMoRan Copper & Gold, Inc., 5.450%, 03/15/43 | | | 886,210 | | | | 0.1 | |
| | | | | | Goldcorp, Inc., 3.700%, 03/15/23 | | | 1,133,932 | | | | 0.1 | |
| | | | | | Mexichem SAB de CV, 4.875%, 09/19/22 | | | 1,880,625 | | | | 0.2 | |
| | | | | | Rio Tinto Finance USA PLC, 1.625%, 08/21/17 | | | 737,578 | | | | 0.1 | |
| | | | | | RPM International, Inc., 3.450%, 11/15/22 | | | 282,265 | | | | 0.0 | |
| | | | | | Sealed Air Corp., 8.375%, 09/15/21 | | | 1,104,000 | | | | 0.1 | |
| | | | | | Teck Resources Ltd., 3.750%, 02/01/23 | | | 1,932,761 | | | | 0.2 | |
| | | | | | Vale Overseas Ltd., 4.625%, 09/15/20 | | | 1,094,546 | | | | 0.1 | |
| | | | | | Xstrata Finance Canada Ltd., 4.000%, 10/25/22 | | | 2,036,944 | | | | 0.2 | |
| | | | | | Xstrata Finance Canada Ltd., 4.950%, 11/15/21 | | | 891,566 | | | | 0.1 | |
| | | | | | | | | 22,398,029 | | | | 1.9 | |
|
| Telecommunication Services 1.4% |
| | | | | | AT&T, Inc., 5.350%, 09/01/40 | | | 1,730,663 | | | | 0.2 | |
| | | | | | Intelsat Jackson Holdings SA, 7.250%, 10/15/20 | | | 468,562 | | | | 0.0 | |
| | | | | | Intelsat Jackson Holdings SA, 7.500%, 04/01/21 | | | 502,875 | | | | 0.0 | |
| | | | | | Motorola Solutions, Inc., 3.500%, 03/01/23 | | | 705,116 | | | | 0.1 | |
| | | | | | Sable International Finance Ltd., 8.750%, 02/01/20 | | | 873,950 | | | | 0.1 | |
| | | | | | Telefonica Chile SA, 3.875%, 10/12/22 | | | 2,567,230 | | | | 0.2 | |
| | | | | | Telefonica Emisiones SAU, 3.992%, 02/16/16 | | | 1,492,153 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
19
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Verizon Communications, Inc., 1.950%, 03/28/14 | | $ | 3,885,828 | | | | 0.3 | |
| | | | | | Vodafone Group PLC, 2.950%, 02/19/23 | | | 570,745 | | | | 0.1 | |
| | | | | | Vodafone Group PLC, 4.375%, 02/19/43 | | | 1,813,147 | | | | 0.2 | |
| | | | | | Windstream Corp., 7.000%, 03/15/19 | | | 1,231,500 | | | | 0.1 | |
| | | | | | | | | 15,841,769 | | | | 1.4 | |
|
| |
| | | | | | AES Corp., 8.000%, 10/15/17 | | | 1,009,969 | | | | 0.1 | |
| | | | | | Ameren Corp., 8.875%, 05/15/14 | | | 1,286,325 | | | | 0.1 | |
| | | | | | American Electric Power Co., Inc., 1.650%, 12/15/17 | | | 774,824 | | | | 0.1 | |
| | | | | | CenterPoint Energy Houston Electric LLC, 3.550%, 08/01/42 | | | 529,290 | | | | 0.0 | |
| | | | | | China Resources Gas Group Ltd, 4.500%, 04/05/22 | | | 653,502 | | | | 0.0 | |
| | | | | | Duquesne Light Holdings, Inc., 5.900%, 12/01/21 | | | 737,390 | | | | 0.1 | |
| | | | | | Duquesne Light Holdings, Inc., 6.400%, 09/15/20 | | | 1,521,753 | | | | 0.1 | |
| | | | | | Empresa de Energia de Bogota SA, 6.125%, 11/10/21 | | | 977,760 | | | | 0.1 | |
| | | | | | Entergy Texas, Inc., 7.125%, 02/01/19 | | | 971,216 | | | | 0.1 | |
| | | | | | FirstEnergy Corp., 2.750%, 03/15/18 | | | 1,032,201 | | | | 0.1 | |
| | | | | | FirstEnergy Corp., 4.250%, 03/15/23 | | | 1,540,505 | | | | 0.1 | |
| | | | | | Iberdrola Finance Ireland Ltd., 3.800%, 09/11/14 | | | 323,433 | | | | 0.0 | |
| | | | | | Juniper Generation, LLC, 6.790%, 12/31/14 | | | 84,025 | | | | 0.0 | |
| | | | | | Korea Gas Corp., 6.250%, 01/20/42 | | | 779,891 | | | | 0.1 | |
| | | | | | Metropolitan Edison, 7.700%, 01/15/19 | | | 795,009 | | | | 0.1 | |
| | | | | | Nevada Power Co., 7.125%, 03/15/19 | | | 917,864 | | | | 0.1 | |
| | | | | | Nisource Finance Corp., 5.950%, 06/15/41 | | | 595,253 | | | | 0.0 | |
| | | | | | Nisource Finance Corp., 6.125%, 03/01/22 | | | 773,907 | | | | 0.1 | |
| | | | | | Oncor Electric Delivery Co. LLC, 4.100%, 06/01/22 | | | 766,752 | | | | 0.1 | |
| | | | | | Oncor Electric Delivery Co. LLC, 6.800%, 09/01/18 | | | 1,221,799 | | | | 0.1 | |
| | | | | | Southwestern Electric Power, 5.550%, 01/15/17 | | | 1,325,390 | | | | 0.1 | |
| | | | | | TransAlta Corp., 4.500%, 11/15/22 | | | 1,048,068 | | | | 0.1 | |
| | | | | | | | | 19,666,126 | | | | 1.7 | |
| |
| | | | | | Total Corporate Bonds/Notes
(Cost $302,845,215) | | | 315,166,748 | | | | 27.4 | |
| | | |
COLLATERALIZED MORTGAGE OBLIGATIONS 17.1% | | |
| | | | | | American General Mortgage Loan Trust, 5.650%, 03/25/58 | | | 1,099,181 | | | | 0.1 | |
| | | | | | Arkle Master Issuer PLC, 1.990%, 05/17/60 | | | 924,468 | | | | 0.1 | |
| | | | | | Banc of America Commercial Mortgage Trust 2007-3, 5.623%, 06/10/49 | | | 1,304,417 | | | | 0.1 | |
| | | | | | Banc of America Alternative Loan Trust 2007-2, 6.000%, 06/25/37 | | | 2,181,994 | | | | 0.2 | |
| | | | | | Banc of America Funding Corp., 5.250%, 08/26/35 | | | 1,640,682 | | | | 0.1 | |
| | | | | | Banc of America Funding Corp., 5.500%, 02/25/35 | | | 2,596,126 | | | | 0.2 | |
| | | | | | Banc of America Large Loan, Inc., 1.603%, 06/15/18 | | | 679,495 | | | | 0.1 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.188%, 09/10/47 | | | 925,191 | | | | 0.1 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.188%, 09/10/47 | | | 1,083,086 | | | | 0.1 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.188%, 09/10/47 | | | 2,059,098 | | | | 0.2 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.188%, 09/10/47 | | | 1,128,853 | | | | 0.1 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.303%, 03/11/41 | | | 463,849 | | | | 0.0 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.339%, 07/10/43 | | | 905,915 | | | | 0.1 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 6.850%, 11/15/31 | | | 322,073 | | | | 0.0 | |
| | | | | | Bank of America-First Union NB Commercial Mortgage, 6.250%, 04/11/37 | | | 652,791 | | | | 0.1 | |
| | | | | | Bank of America-First Union NB Commercial Mortgage, 6.907%, 04/11/37 | | | 968,058 | | | | 0.1 | |
| | | | | | Bear Stearns Alternative-A Trust, 0.844%, 07/25/34 | | | 435,345 | | | | 0.0 | |
See Accompanying Notes to Financial Statements
20
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Bear Stearns Commercial Mortgage Securities, 5.581%, 04/12/38 | | $ | 1,237,627 | | | | 0.1 | |
| | | | | | Bear Stearns Commercial Mortgage Securities, 5.640%, 02/14/31 | | | 239,567 | | | | 0.0 | |
| | | | | | Bear Stearns Commercial Mortgage Securities, 6.500%, 02/15/32 | | | 526,221 | | | | 0.0 | |
| | | | | | Bear Stearns Commercial Mortgage Securities, 6.500%, 02/15/32 | | | 65,907 | | | | 0.0 | |
| | | | | | Chase Mortgage Finance Corp., 5.159%, 12/25/35 | | | 1,070,182 | | | | 0.1 | |
| | | | | | Chase Mortgage Finance Corp., 6.000%, 05/25/37 | | | 1,225,754 | | | | 0.1 | |
| | | | | | Citicorp Mortgage Securities, Inc., 6.000%, 06/25/36 | | | 2,613,913 | | | | 0.2 | |
| | | | | | Citicorp Mortgage Securities, Inc., 6.000%, 08/25/36 | | | 909,250 | | | | 0.1 | |
| | | | | | Citigroup Commercial Mortgage Trust, 2.259%, 09/10/45 | | | 1,028,351 | | | | 0.1 | |
| | | | | | Citigroup Mortgage Loan Trust 2010-7, 6.729%, 12/25/35 | | | 2,651,623 | | | | 0.2 | |
| | | | | | Citimortgage Alternative Loan Trust, 6.000%, 06/25/37 | | | 3,499,412 | | | | 0.3 | |
| | | | | | COMM 2007-C9 Mortgage Trust, 5.650%, 12/10/49 | | | 1,290,362 | | | | 0.1 | |
| | | | | | COMM 2013-LC6 Mortgage Trust, 1.819%, 01/10/46 | | | 956,678 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass Through Certificates, 0.600%, 10/15/45 | | | 1,450,431 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass Through Certificates, 1.948%, 12/10/45 | | | 955,261 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass Through Certificates, 1.966%, 08/15/45 | | | 641,914 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass Through Certificates, 2.254%, 05/15/45 | | | 958,282 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass Through Certificates, 5.800%, 12/10/49 | | | 40,076 | | | | 0.0 | |
| | | | | | Countrywide Alternative Loan Trust, 5.500%, 12/25/35 | | | 2,160,977 | | | | 0.2 | |
| | | | | | Countrywide Home Loan Mortgage Pass Through Trust, 5.750%, 06/25/37 | | | 1,534,064 | | | | 0.1 | |
| | | | | | Countrywide Home Loan Mortgage Pass-through Trust, 0.524%, 04/25/35 | | | 179,661 | | | | 0.0 | |
| | | | | | Countrywide Alternative Loan Trust, 0.324%, 06/25/36 | | | 2,417,899 | | | | 0.2 | |
| | | | | | Credit Suisse First Boston Mortgage Securities Corp., 5.343%, 12/15/39 | | | 342,278 | | | | 0.0 | |
| | | | | | Credit Suisse First Boston Mortgage Securities Corp., 5.575%, 04/12/49 | | | 1,326,910 | | | | 0.1 | |
| | | | | | Credit Suisse First Boston Mortgage Securities Corp., 7.309%, 12/15/35 | | | 1,860,858 | | | | 0.2 | |
| | | | | | Credit Suisse First Boston Mortgage Securities Corp., 7.490%, 08/15/36 | | | 451,527 | | | | 0.0 | |
| | | | | | Deutsche ALT-A Securities, Inc. Alternate Loan Trust, 0.324%, 08/25/36 | | | 1,210,208 | | | | 0.1 | |
| | | | | | Deutsche ALT-A Securities, Inc. Alternate Loan Trust, 0.394%, 10/25/36 | | | 1,315,729 | | | | 0.1 | |
| | | | | | First Horizon Alternative Mortgage Securities, 0.504%, 12/25/36 | | | 1,217,552 | | | | 0.1 | |
| | | | | | First Horizon Alternative Mortgage Securities, 6.250%, 02/25/37 | | | 2,397,905 | | | | 0.2 | |
| | | | | | First Horizon Alternative Mortgage Securities, 6.496%, 12/25/36 | | | 460,864 | | | | 0.0 | |
| | | | | | First Horizon Alternative Mortgage Securities, 6.000%, 05/25/36 | | | 3,677,302 | | | | 0.3 | |
| | | | | | First Horizon Alternative Mortgage Securities Trust 2006-FA8, 6.000%, 02/25/37 | | | 1,230,456 | | | | 0.1 | |
| | | | | | First Union National Bank Com Mort Pas Thr Cert Ser 2001 C4, 6.000%, 12/12/33 | | | 1,941,234 | | | | 0.2 | |
| | | | | | First Union National Bank Commercial Mortgage, 6.000%, 12/12/33 | | | 652,756 | | | | 0.1 | |
| | | | | | Fosse Master PLC, 1.703%, 10/18/54 | | | 1,224,432 | | | | 0.1 | |
| | | | | | Freddie Mac, 5.000%, 02/15/35 | | | 1,947,292 | | | | 0.2 | |
| | | | | | Freddie Mac, 5.500%, 07/15/37 | | | 1,979,011 | | | | 0.2 | |
| | | | | | GE Capital Commercial Mortgage Corp., 5.496%, 11/10/38 | | | 1,986,367 | | | | 0.2 | |
| | | | | | Gracechurch Mortgage Financing PLC, 1.839%, 11/20/56 | | | 679,539 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
21
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Greenwich Capital Commercial Funding Corp., 4.894%, 08/10/42 | | $ | 988,451 | | | | 0.1 | |
| | | | | | GS Mortgage Securities Corp. II, 2.408%, 11/10/45 | | | 1,337,721 | | | | 0.1 | |
| | | | | | GS Mort Sec Corp. II Commercial Mort Ps Thr Cert Ser 2004-GG2, 5.644%, 08/10/38 | | | 709,571 | | | | 0.1 | |
| | | | | | GSR Mortgage Loan Trust, 0.704%, 06/25/35 | | | 37,055 | | | | 0.0 | |
| | | | | | GSR Mortgage Loan Trust, 5.500%, 05/25/36 | | | 1,729,883 | | | | 0.1 | |
| | | | | | GSR Mortgage Loan Trust, 5.500%, 07/25/35 | | | 830,846 | | | | 0.1 | |
| | | | | | GSR Mortgage Loan Trust, 6.000%, 01/25/37 | | | 1,133,743 | | | | 0.1 | |
| | | | | | Holmes Master Issuer PLC, 1.854%, 10/21/54 | | | 2,949,033 | | | | 0.3 | |
| | | | | | Homebanc Mortgage Trust, 1.064%, 08/25/29 | | | 231,882 | | | | 0.0 | |
| | | | | | JP Morgan Chase Com Mort Sec Corp. Ps Thr Certs Ser 2003-LN1, 5.553%, 10/15/37 | | | 1,338,837 | | | | 0.1 | |
| | | | | | JP Morgan Alternative Loan Trust, 5.500%, 12/25/35 | | | 809,200 | | | | 0.1 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 0.361%, 12/15/47 | | | 437,434 | | | | 0.0 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 1.956%, 12/15/47 | | | 1,606,345 | | | | 0.1 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 2.044%, 06/16/45 | | | 1,959,220 | | | | 0.2 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 4.903%, 10/15/42 | | | 247,266 | | | | 0.0 | |
| | | | | | JP Morgan Commercial Mortgage Finance Corp., 8.476%, 08/15/32 | | | 525,552 | | | | 0.0 | |
| | | | | | JP Morgan Mortgage Trust 2006-S4, 6.000%, 01/25/37 | | | 1,061,237 | | | | 0.1 | |
| | | | | | JP Morgan Mortgage Trust 2007-S2, 6.750%, 06/25/37 | | | 891,168 | | | | 0.1 | |
| | | | | | JP Morgan Mortgage Trust, 6.000%, 01/25/36 | | | 3,939,483 | | | | 0.3 | |
| | | | | | JP Morgan Mortgage Trust, 6.500%, 08/25/36 | | | 3,619,102 | | | | 0.3 | |
| | | | | | JPMorgan Chase Commerical Mortgage Securities Corp., 5.198%, 12/15/44 | | | 101,247 | | | | 0.0 | |
| | | | | | JPMorgan Chase Commerical Mortgage Securities Corp., 6.135%, 07/12/37 | | | 1,262,626 | | | | 0.1 | |
| | | | | | Lanark Master Issuer PLC, 1.689%, 12/22/54 | | | 5,116,175 | | | | 0.4 | |
| | | | | | LB Commercial Conduit Mortgage Trust, 5.864%, 07/15/44 | | | 579,182 | | | | 0.1 | |
| | | | | | LB Commercial Mortgage Trust 2007-C3, 5.864%, 07/15/44 | | | 1,064,621 | | | | 0.1 | |
| | | | | | LB Commercial Mortgage Trust 2007-C3, 5.864%, 07/15/44 | | | 1,642,871 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2005-C3, 4.954%, 07/15/40 | | | 747,224 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2005-C3, 5.013%, 07/15/40 | | | 1,054,967 | �� | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 0.638%, 11/15/38 | | | 1,148,786 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 4.895%, 07/15/40 | | | 1,652,434 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 4.943%, 10/15/36 | | | 1,501,451 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 4.983%, 07/15/40 | | | 630,763 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.224%, 07/15/37 | | | 1,596,583 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.231%, 10/15/36 | | | 604,635 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.252%, 02/15/40 | | | 629,732 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.350%, 11/15/40 | | | 812,602 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.350%, 11/15/40 | | | 1,036,467 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.513%, 06/15/36 | | | 1,050,343 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.531%, 10/15/36 | | | 843,018 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.886%, 06/15/38 | | | 2,557,813 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.980%, 09/15/39 | | | 1,776,912 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.980%, 09/15/39 | | | 1,812,343 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 6.890%, 07/15/32 | | | 1,962,017 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2000-C4, 8.150%, 07/15/32 | | | 885,945 | | | | 0.1 | |
| | | | | | Merrill Lynch Mortgage Investors, Inc., 6.250%, 12/10/29 | | | 295,235 | | | | 0.0 | |
| | | | | | Merrill Lynch Mortgage Investors, Inc., 6.750%, 11/15/26 | | | 2,314,187 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
22
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust, 1.530%, 12/15/48 | | $ | 961,127 | | | | 0.1 | |
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust, 1.931%, 08/15/45 | | | 1,551,517 | | | | 0.1 | |
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust, 2.190%, 11/15/45 | | | 1,301,854 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I Trust 2004-HQ3, 5.079%, 01/13/41 | | | 410,941 | | | | 0.0 | |
| | | | | | Morgan Stanley Capital I Trust 2004-HQ3, 5.079%, 01/13/41 | | | 403,407 | | | | 0.0 | |
| | | | | | Morgan Stanley Capital I Trust 2007-TOP25, 5.614%, 11/12/49 | | | 842,791 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, Inc., 5.419%, 06/15/38 | | | 1,509,597 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, Inc., 5.910%, 11/15/31 | | | 242,337 | | | | 0.0 | |
| | | | | | Morgan Stanley Capital I, 5.073%, 08/13/42 | | | 1,306,623 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.172%, 08/13/42 | | | 3,465,377 | | | | 0.3 | |
| | | | | | Morgan Stanley Capital I, 5.202%, 08/13/42 | | | 801,615 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.214%, 01/13/41 | | | 1,013,103 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.254%, 09/15/47 | | | 1,368,787 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.254%, 09/15/47 | | | 1,436,432 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.302%, 01/14/42 | | | 1,509,709 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.336%, 01/14/42 | | | 1,079,511 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.300%, 06/15/40 | | | 874,919 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.793%, 07/12/44 | | | 888,798 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 7.350%, 07/15/32 | | | 211,437 | | | | 0.0 | |
| | | | | | Morgan Stanley Dean Witter Capital I, 5.826%, 03/12/35 | | | 789,648 | | | | 0.1 | |
| | | | | | Morgan Stanley Dean Witter Capital I, 7.373%, 07/15/33 | | | 619,704 | | | | 0.1 | |
| | | | | | Morgan Stanley Reremic Trust, 5.466%, 12/17/43 | | | 1,068,215 | | | | 0.1 | |
| | | | | | Prime Mortgage Trust 2007-1, 5.500%, 03/25/37 | | | 547,763 | | | | 0.0 | |
| | | | | | Queens Center Mortgage Trust 2013-QC, 3.275%, 01/11/37 | | | 1,423,265 | | | | 0.1 | |
| | | | | | Queens Center Mortgage Trust 2013-QC, 3.474%, 01/11/37 | | | 1,443,325 | | | | 0.1 | |
| | | | | | RALI Trust, 6.000%, 09/25/35 | | | 1,206,973 | | | | 0.1 | |
| | | | | | RBSCF Trust, 0.969%, 04/15/24 | | | 297,661 | | | | 0.0 | |
| | | | | | RBSCF Trust, 5.305%, 01/16/49 | | | 2,722,093 | | | | 0.2 | |
| | | | | | Residential Accredit Loans, Inc., 0.374%, 01/25/37 | | | 3,178,594 | | | | 0.3 | |
| | | | | | Residential Accredit Loans, Inc., 0.654%, 12/25/36 | | | 849,166 | | | | 0.1 | |
| | | | | | Salomon Brothers Mortgage Securities VII, Inc., 7.000%, 05/18/32 | | | 2,981,086 | | | | 0.3 | |
| | | | | | Silverstone Master Issuer PLC, 1.852%, 01/21/55 | | | 2,364,959 | | | | 0.2 | |
| | | | | | Springleaf Mortgage Loan Trust, 4.440%, 12/25/59 | | | 2,040,527 | | | | 0.2 | |
| | | | | | Structured Adjustable Rate Mortgage Loan Trust, 2.792%, 09/25/34 | | | 426,772 | | | | 0.0 | |
| | | | | | Structured Asset Mortgage Investments, Inc., 0.683%, 04/19/35 | | | 545,267 | | | | 0.0 | |
| | | | | | Structured Asset Securities Corp., 5.500%, 05/25/35 | | | 692,990 | | | | 0.1 | |
| | | | | | UBS-Barclays Commercial Mortgage Trust, 1.820%, 05/10/63 | | | 832,252 | | | | 0.1 | |
| | | | | | Wachovia Bank Commercial Mortgage Trust, 5.383%, 12/15/43 | | | 1,786,141 | | | | 0.2 | |
| | | | | | WaMu Mortgage Pass Through Certificates, 2.463%, 10/25/35 | | | 392,019 | | | | 0.0 | |
| | | | | | Washington Mutual Alternative Mortgage Pass-Through Certificates, 5.500%, 10/25/35 | | | 973,964 | | | | 0.1 | |
| | | | | | Washington Mutual Alternative Mortgage Pass-Through Certificates, 6.000%, 11/25/35 | | | 1,946,623 | | | | 0.2 | |
| | | | | | Washington Mutual Mortgage Pass-through Certificates, 6.000%, 06/25/34 | | | 1,138,684 | | | | 0.1 | |
| | | | | | Wells Fargo Alternative Loan Trust, 6.250%, 07/25/37 | | | 3,658,520 | | | | 0.3 | |
| | | | | | Wells Fargo Mortgage Backed Securities Trust, 1.604%, 06/15/45 | | | 1,049,446 | | | | 0.1 | |
| | | | | | Wells Fargo Mortgage Backed Securities Trust, 2.250%, 08/15/45 | | | 968,621 | | | | 0.1 | |
| | | | | | Wells Fargo Mortgage Backed Securities Trust, 5.500%, 11/25/35 | | | 1,858,032 | | | | 0.2 | |
| | | | | | Wells Fargo Mortgage Backed Securities Trust, 5.582%, 04/25/36 | | | 2,581,237 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
23
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Wells Fargo Mortgage Backed Securities Trust, 6.000%, 03/25/37 | | $ | 1,423,565 | | | | 0 .1 | |
| |
| | | | | | Total Collateralized Mortgage Obligations
(Cost $188,762,511) | | | 196,976,456 | | | | 17.1 | |
| |
ASSET-BACKED SECURITIES 6.6% |
| Automobile Asset-Backed Securities 0.3% |
| | | | | | Motor PLC, 1.286%, 02/25/20 | | | 1,004,094 | | | | 0.1 | |
| | | | | | SMART Trust, 1.590%, 10/14/16 | | | 1,517,832 | | | | 0.1 | |
| | | | | | SMART Trust/Australia, 1.050%, 10/14/18 | | | 997,626 | | | | 0.1 | |
| | | | | | | | | 3,519,552 | | | | 0.3 | |
|
| Credit Card Asset-Backed Securities 0.5% |
| | | | | | Cards II Trust, 0.653%, 09/15/17 | | | 2,513,046 | | | | 0.2 | |
| | | | | | Gracechurch Card Funding PLC, 0.903%, 02/15/17 | | | 1,263,298 | | | | 0.1 | |
| | | | | | Penarth Master Issuer PLC, 0.773%, 03/18/14 | | | 2,211,117 | | | | 0.2 | |
| | | | | | | | | 5,987,461 | | | | 0.5 | |
|
| Home Equity Asset-Backed Securities 0.4% |
| | | | | | Freddie Mac Structured Pass-Through Securities, 0.454%, 05/25/31 | | | 1,033,509 | | | | 0.1 | |
| | | | | | Freddie Mac Structured Pass-Through Securities, 0.504%, 01/25/32 | | | 42,901 | | | | 0.0 | |
| | | | | | GSAA Trust, 0.264%, 10/25/36 | | | 2,219,386 | | | | 0.2 | |
| | | | | | GSAA Trust, 0.294%, 12/25/36 | | | 1,980,183 | | | | 0.1 | |
| | | | | | Residential Asset Securities Corp., 0.804%, 06/25/32 | | | 37,930 | | | | 0.0 | |
| | | | | | | | | 5,313,909 | | | | 0.4 | |
|
| Other Asset-Backed Securities 5.4% |
| | | | | | Aimco CDO, 0.552%, 10/20/19 | | | 857,415 | | | | 0.1 | |
| | | | | | Apidos CDO I Ltd., 1.051%, 07/27/17 | | | 481,903 | | | | 0.0 | |
| | | | | | Apidos CDO II, 1.101%, 12/21/18 | | | 883,255 | | | | 0.1 | |
| | | | | | ARES X CLO Ltd., 2.280%, 09/18/17 | | | 1,172,759 | | | | 0.1 | |
| | | | | | Atrium CDO Corp., 0.617%, 10/27/16 | | | 457,497 | | | | 0.0 | |
| | | | | | Atrium III, 2.287%, 10/27/16 | | | 709,133 | | | | 0.1 | |
| | | | | | Atrium IV, 1.030%, 06/08/19 | | | 1,680,161 | | | | 0.1 | |
| | | | | | Atrium IV, 2.130%, 06/08/19 | | | 722,395 | | | | 0.1 | |
| | | | | | Black Diamond CLO Ltd., 0.550%, 06/20/17 | | | 3,399,323 | | | | 0.3 | |
| | | | | | Castle Garden Funding, 0.547%, 10/27/20 | | | 2,052,817 | | | | 0.2 | |
| | | | | | Castle Garden Funding, 5.037%, 10/27/20 | | | 600,798 | | | | 0.0 | |
| | | | | | Castle Garden Funding, 6.560%, 10/27/20 | | | 1,077,279 | | | | 0.1 | |
| | | | | | Centurion CDO VII Ltd, 1.702%, 01/30/16 | | | 2,936,548 | | | | 0.3 | |
| | | | | | Chase Funding Trust Series 2003-5, 0.804%, 07/25/33 | | | 70,181 | | | | 0.0 | �� |
| | | | | | Clydesdale CLO 2005 Ltd, 0.755%, 12/06/17 | | | 2,170,608 | | | | 0.2 | |
| | | | | | Clydesdale Strategic CLO Ltd., 1.289%, 01/20/17 | | | 1,245,226 | | | | 0.1 | |
| | | | | | CNH Equipment Trust, 0.870%, 11/15/19 | | | 2,075,711 | | | | 0.2 | |
| | | | | | Countrywide Asset-Backed Certificates, 5.530%, 04/25/47 | | | 2,712,934 | | | | 0.2 | |
| | | | | | Credit-Based Asset Servicing and Securitization, LLC, 4.670%, 08/25/35 | | | 709,929 | | | | 0.1 | |
| | | | | | Credit-Based Asset Servicing and Securitization, LLC, 5.746%, 12/25/37 | | | 937,709 | | | | 0.1 | |
| | | | | | Emporia Preferred Funding II Corp., 0.583%, 10/18/18 | | | 2,185,718 | | | | 0.2 | |
| | | | | | Emporia Preferred Funding, 0.803%, 10/18/18 | | | 1,985,199 | | | | 0.2 | |
| | | | | | First CLO Ltd., 1.281%, 12/14/16 | | | 492,634 | | | | 0.0 | |
| | | | | | Galaxy CLO Ltd, 0.753%, 04/17/17 | | | 622,319 | | | | 0.0 | |
| | | | | | Grayston CLO Ltd., 1.590%, 08/15/16 | | | 1,274,976 | | | | 0.1 | |
| | | | | | Gulf Stream—Compass CLO 2005-I Ltd., 1.040%, 05/15/17 | | | 1,491,301 | | | | 0.1 | |
| | | | | | Gulf Stream—Compass CLO 2005-I Ltd, 2.190%, 05/15/17 | | | 2,945,835 | | | | 0.3 | |
| | | | | | Gulf Stream—Sextant CLO Ltd., 0.629%, 08/21/20 | | | 2,186,921 | | | | 0.2 | |
| | | | | | Gulf Stream Compass CLO Ltd., 0.710%, 05/15/17 | | | 3,078,477 | | | | 0.3 | |
| | | | | | Gulf Stream Compass CLO Ltd., 1.554%, 07/15/16 | | | 987,759 | | | | 0.1 | |
| | | | | | Hewett’s Island CDO Ltd., 1.480%, 12/15/16 | | | 978,710 | | | | 0.1 | |
| | | | | | Hewett’s Island CLO II Ltd., 2.680%, 12/15/16 | | | 1,059,936 | | | | 0.1 | |
| | | | | | Integral Funding, Inc., 4.804%, 09/27/17 | | | 1,124,888 | | | | 0.1 | |
| | | | | | Landmark IV CDO Ltd, 2.430%, 12/15/16 | | | 2,865,046 | | | | 0.2 | |
| | | | | | Landmark VI CDO Ltd, 0.805%, 01/14/18 | | | 2,647,752 | | | | 0.2 | |
| | | | | | Lehman XS Trust, 0.484%, 08/25/35 | | | 395,601 | | | | 0.0 | |
| | | | | | Lightpoint CLO Ltd., 0.540%, 09/15/17 | | | 1,840,715 | | | | 0.2 | |
| | | | | | Madison Park Funding I Ltd., 2.192%, 05/10/19 | | | 853,245 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
24
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Madison Park Funding I Ltd., 5.042%, 05/10/19 | | $ | 680,548 | | | | 0.1 | |
| | | | | | Marathon CLO I Ltd, 2.201%, 07/26/19 | | | 1,419,712 | | | | 0.1 | |
| | | | | | Morgan Stanley Investment Management Croton Ltd, 0.754%, 01/15/18 | | | 1,504,712 | | | | 0.1 | |
| | | | | | Oak Hill Credit Partners IV Ltd, 1.990%, 05/17/21 | | | 913,766 | | | | 0.1 | |
| | | | | | Whitney CLO Ltd, 2.387%, 03/01/17 | | | 1,065,502 | | | | 0.1 | |
| | | | | | Wind River CLO Ltd., 0.610%, 12/19/16 | | | 283,043 | | | | 0.0 | |
| | | | | | | | | 61,837,896 | | | | 5.4 | |
| |
| | | | | | Total Asset-Backed Securities
(Cost $75,762,994) | | | 76,658,818 | | | | 6.6 | |
| |
U.S. TREASURY OBLIGATIONS 12.8% |
|
| |
| | | | | | | | | 10,977,223 | | | | 0.9 | |
| | | | | | | | | 14,572,353 | | | | 1.3 | |
| | | | | | | | | 25,549,576 | | | | 2.2 | |
|
| U.S. Treasury Notes 10.6% |
| | | | | | | | | 28,531,703 | | | | 2.5 | |
| | | | | | | | | 55,000,260 | | | | 4.8 | |
| | | | | | | | | 21,230,298 | | | | 1.8 | |
| | | | | | | | | 11,514,799 | | | | 1.0 | |
| | | | | | | | | 5,269,550 | | | | 0.5 | |
| | | | | | | | | 121,546,610 | | | | 10.6 | |
| |
| | | | | | Total U.S. Treasury Obligations
(Cost $146,893,322) | | | 147,096,186 | | | | 12.8 | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS 30.9% |
| Federal Home Loan Mortgage Corporation 7.1%## |
| | | | | | | | | 126,513 | | | | 0.0 | |
| | | | | | | | | 1,840,782 | | | | 0.2 | |
| | | | | | | | | 3,727,452 | | | | 0.3 | |
| | | | | | | | | 1,948,492 | | | | 0.2 | |
| | | | | | | | | 716,073 | | | | 0.1 | |
| | | | | | | | | 1,532,121 | | | | 0.1 | |
| | | | | | | | | 3,113,795 | | | | 0.3 | |
| | | | | | | | | 4,464,369 | | | | 0.4 | |
| | | | | | | | | 1,897,372 | | | | 0.2 | |
| | | | | | | | | 6,195,004 | | | | 0.5 | |
| | | | | | | | | 1,566,652 | | | | 0.1 | |
| | | | | | | | | 3,029,135 | | | | 0.3 | |
| | | | | | | | | 1,005,907 | | | | 0.1 | |
| | | | | | | | | 3,462,573 | | | | 0.3 | |
| | | | | | | | | 4,399,572 | | | | 0.4 | |
| | | | | | | | | 2,010,180 | | | | 0.2 | |
| | | | | | | | | 1,831,058 | | | | 0.2 | |
| | | | | | | | | 267,309 | | | | 0.0 | |
| | | | | | | | | 649 | | | | 0.0 | |
| | | | | | | | | 918,109 | | | | 0.1 | |
| | | | | | | | | 62,590 | | | | 0.0 | |
| | | | | | | | | 1,673,291 | | | | 0.1 | |
| | | | | | | | | 619,120 | | | | 0.0 | |
| | | | | | | | | 650,019 | | | | 0.0 | |
| | | | | | | | | 1,637,101 | | | | 0.1 | |
| | | | | | | | | 136,537 | | | | 0.0 | |
| | | | | | | | | 2,245,501 | | | | 0.2 | |
| | | | | | | | | 926,231 | | | | 0.1 | |
| | | | | | | | | 8,942,164 | | | | 0.8 | |
| | | | | | | | | 1,741,249 | | | | 0.1 | |
| | | | | | | | | 1,069,760 | | | | 0.1 | |
| | | | | | | | | 2,995,630 | | | | 0.3 | |
| | | | | | | | | 26,693 | | | | 0.0 | |
| | | | | | | | | 2,146,958 | | | | 0.2 | |
| | | | | | | | | 967,013 | | | | 0.1 | |
| | | | | | | | | 2,247 | | | | 0.0 | |
| | | | | | | | | 10,336 | | | | 0.0 | |
| | | | | | | | �� | 25,534 | | | | 0.0 | |
| | | | | | | | | 672,215 | | | | 0.1 | |
| | | | | | | | | 665,976 | | | | 0.0 | |
| | | | | | | | | 806,385 | | | | 0.1 | |
| | | | | | | | | 97,859 | | | | 0.0 | |
| | | | | | | | | 4,424,213 | | | | 0.4 | |
| | | | | | | | | 1,502,125 | | | | 0.1 | |
| | | | | | | | | 1,100,033 | | | | 0.1 | |
| | | | | | | | | 2,087,407 | | | | 0.2 | |
| | | | | | | | | 24,468 | | | | 0.0 | |
| | | | | | | | | 28,450 | | | | 0.0 | |
| | | | | | | | | 23,364 | | | | 0.0 | |
| | | | | | | | | 11,157 | | | | 0.0 | |
| | | | | | | | | 81,374,743 | | | | 7.1 | |
|
| Federal National Mortgage Association 17.7%## |
| | | | | | | | | 215,307 | | | | 0.0 | |
| | | | | | | | | 109,171 | | | | 0.0 | |
| | | | | | | | | 131,387 | | | | 0.0 | |
| | | | | | | | | 25,886,720 | | | | 2.2 | |
| | | | | | | | | 20,466,739 | | | | 1.8 | |
| | | | | | | | | 2,722,146 | | | | 0.2 | |
| | | | | | | | | 23,654,554 | | | | 2.1 | |
| | | | | | | | | 33,150,406 | | | | 2.9 | |
| | | | | | | | | 2,224,979 | | | | 0.2 | |
| | | | | | | | | 60,109 | | | | 0.0 | |
| | | | | | | | | 9,028,196 | | | | 0.8 | |
| | | | | | | | | 20,352,274 | | | | 1.8 | |
| | | | | | | | | 1,550,717 | | | | 0.1 | |
| | | | | | | | | 2,299,779 | | | | 0.2 | |
| | | | | | | | | 2,134,176 | | | | 0.2 | |
| | | | | | | | | 949,397 | | | | 0.1 | |
| | | | | | | | | 797,655 | | | | 0.1 | |
| | | | | | | | | 1,879,887 | | | | 0.2 | |
| | | | | | | | | 1,138,965 | | | | 0.1 | |
| | | | | | | | | 6,010,915 | | | | 0.5 | |
| | | | | | | | | 971,037 | | | | 0.1 | |
| | | | | | | | | 6,010,065 | | | | 0.5 | |
| | | | | | | | | 1,114,724 | | | | 0.1 | |
| | | | | | | | | 1,682,588 | | | | 0.1 | |
| | | | | | | | | 16,284 | | | | 0.0 | |
| | | | | | | | | 25,940 | | | | 0.0 | |
| | | | | | | | | 26,402 | | | | 0.0 | |
| | | | | | | | | 32,978 | | | | 0.0 | |
| | | | | | | | | 5,935,869 | | | | 0.5 | |
| | | | | | | | | 2,394,212 | | | | 0.2 | |
| | | | | | | | | 794,840 | | | | 0.1 | |
| | | | | | | | | 200,460 | | | | 0.0 | |
| | | | | | | | | 668,939 | | | | 0.1 | |
| | | | | | | | | 903,362 | | | | 0.1 | |
| | | | | | | | | 582,710 | | | | 0.1 | |
| | | | | | | | | 1,594,879 | | | | 0.1 | |
| | | | | | | | | 1,810,036 | | | | 0.2 | |
| | | | | | | | | 214,645 | | | | 0.0 | |
| | | | | | | | | 879,051 | | | | 0.1 | |
| | | | | | | | | 577,300 | | | | 0.1 | |
| | | | | | | | | 1,267,101 | | | | 0.1 | |
| | | | | | | | | 1,629,250 | | | | 0.1 | |
| | | | | | | | | 736,391 | | | | 0.1 | |
| | | | | | | | | 539,674 | | | | 0.0 | |
See Accompanying Notes to Financial Statements
25
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | | | $ | 338,967 | | | | 0.0 | |
| | | | | | | | | 1,349,964 | | | | 0.1 | |
| | | | | | | | | 899,107 | | | | 0.1 | |
| | | | | | | | | 45,229 | | | | 0.0 | |
| | | | | | | | | 631,144 | | | | 0.1 | |
| | | | | | | | | 1,156,924 | | | | 0.1 | |
| | | | | | | | | 2,194,412 | | | | 0.2 | |
| | | | | | | | | 61,140 | | | | 0.0 | |
| | | | | | | | | 594 | | | | 0.0 | |
| | | | | | | | | 28,753 | | | | 0.0 | |
| | | | | | | | | 3,401 | | | | 0.0 | |
| | | | | | | | | 256,750 | | | | 0.0 | |
| | | | | | | | | 15,972 | | | | 0.0 | |
| | | | | | | | | 18,225 | | | | 0.0 | |
| | | | | | | | | 362,436 | | | | 0.0 | |
| | | | | | | | | 853,302 | | | | 0.1 | |
| | | | | | | | | 680,441 | | | | 0.1 | |
| | | | | | | | | 147,738 | | | | 0.0 | |
| | | | | | | | | 437,622 | | | | 0.0 | |
| | | | | | | | | 423,070 | | | | 0.0 | |
| | | | | | | | | 845,586 | | | | 0.1 | |
| | | | | | | | | 181,865 | | | | 0.0 | |
| | | | | | | | | 7,478 | | | | 0.0 | |
| | | | | | | | | 7,636 | | | | 0.0 | |
| | | | | | | | | 415 | | | | 0.0 | |
| | | | | | | | | 180,198 | | | | 0.0 | |
| | | | | | | | | 561 | | | | 0.0 | |
| | | | | | | | | 1,623 | | | | 0.0 | |
| | | | | | | | | 56,537 | | | | 0.0 | |
| | | | | | | | | 27,124 | | | | 0.0 | |
| | | | | | | | | 6,662 | | | | 0.0 | |
| | | | | | | | | 2,924 | | | | 0.0 | |
| | | | | | | | | 33,888 | | | | 0.0 | |
| | | | | | | | | 70,086 | | | | 0.0 | |
| | | | | | | | | 198,560 | | | | 0.0 | |
| | | | | | | | | 731,701 | | | | 0.1 | |
| | | | | | | | | 2,509,273 | | | | 0.2 | |
| | | | | | | | | 30,645 | | | | 0.0 | |
| | | | | | | | | 23,359 | | | | 0.0 | |
| | | | | | | | | 14,794 | | | | 0.0 | |
| | | | | | | | | 7,704 | | | | 0.0 | |
| | | | | | | | | 195,054 | | | | 0.0 | |
| | | | | | | | | 5,537 | | | | 0.0 | |
| | | | | | | | | 4,669 | | | | 0.0 | |
| | | | | | | | | 17,352 | | | | 0.0 | |
| | | | | | | | | 11,879 | | | | 0.0 | |
| | | | | | | | | 42,723 | | | | 0.0 | |
| | | | | | | | | 1,705,851 | | | | 0.2 | |
| | | | | | | | | 127,836 | | | | 0.0 | |
| | | | | | | | | 1,686,793 | | | | 0.1 | |
| | | | | | | | | 204,013,720 | | | | 17.7 | |
|
| Government National Mortgage Association 6.1% |
| | | | | | | | | 5,723 | | | | 0.0 | |
| | | | | | | | | 16,156,294 | | | | 1.4 | |
| | | | | | | | | 36,909,029 | | | | 3.2 | |
| | | | | | | | | 1,403,442 | | | | 0.1 | |
| | | | | | | | | 2,800,632 | | | | 0.2 | |
| | | | | | | | | 1,584,796 | | | | 0.1 | |
| | | | | | | | | 1,481,119 | | | | 0.1 | |
| | | | | | | | | 1,348,411 | | | | 0.1 | |
| | | | | | | | | 355,731 | | | | 0.0 | |
| | | | | | | | | 434,652 | | | | 0.0 | |
| | | | | | | | | 300,670 | | | | 0.0 | |
| | | | | | | | | 1,407,959 | | | | 0.1 | |
| | | | | | | | | 896,721 | | | | 0.1 | |
| | | | | | | | | 1,436,087 | | | | 0.1 | |
| | | | | | | | | 536,671 | | | | 0.1 | |
| | | | | | | | | 929,805 | | | | 0.1 | |
| | | | | | | | | 537,027 | | | | 0.1 | |
| | | | | | | | | 706,803 | | | | 0.1 | |
| | | | | | | | | 300,001 | | | | 0.0 | |
| | | | | | | | | 580,167 | | | | 0.1 | |
| | | | | | | | | 154,164 | | | | 0.0 | |
| | | | | | | | | 664,525 | | | | 0.1 | |
| | | | | | | | | 25,822 | | | | 0.0 | |
| | | | | | | | | 70,956,251 | | | | 6.1 | |
| |
| | | | | | Total U.S. Government Agency Obligations
(Cost $345,515,754) | | | 356,344,714 | | | | 30.9 | |
| |
FOREIGN GOVERNMENT BONDS 11.0% |
| | | | | | AHML Finance, 7.750%, 02/13/18 | | | 4,390,685 | | | | 0.4 | |
| | | | | | Argentina Government International Bond, 2.500%, 12/31/38 | | | 298,381 | | | | 0.0 | |
| | | | | | Argentina Government International Bond, 8.280%, 12/31/33 | | | 514,285 | | | | 0.0 | |
| | | | | | City of Buenos Aires, 9.950%, 03/01/17 | | | 513,000 | | | | 0.0 | |
| | | | | | Aruba Government Bond, 4.625%, 09/14/23 | | | 1,248,000 | | | | 0.1 | |
| | | | | | Banco de Reservas de LA Republica Dominicana, 7.000%, 02/01/23 | | | 402,000 | | | | 0.0 | |
| | | | | | Belize Government International Bond, 5.000%, 02/20/38 | | | 231,988 | | | | 0.0 | |
| | | | | | Brazil Notas do Tesouro Nacional Series F, 10.000%, 01/01/21 | | | 2,968,489 | | | | 0.3 | |
| | | | | | Brazil Notas do Tesouro Nacional Series F, 10.000%, 01/01/23 | | | 22,667,219 | | | | 2.0 | |
| | | | | | Brazilian Government International Bond, 2.625%, 01/05/23 | | | 2,664,200 | | | | 0.2 | |
| | | | | | Caixa Economica Federal, 3.500%, 11/07/22 | | | 480,000 | | | | 0.0 | |
| | | | | | Colombia Government International Bond, 2.625%, 03/15/23 | | | 1,155,000 | | | | 0.1 | |
| | | | | | Colombia Government International Bond, 7.375%, 03/18/19 | | | 646,250 | | | | 0.1 | |
| | | | | | Colombia Government International Bond, 8.125%, 05/21/24 | | | 1,097,820 | | | | 0.1 | |
| | | | | | Comision Federal de Electricidad, 5.750%, 02/14/42 | | | 451,000 | | | | 0.0 | |
| | | | | | Corp Nacional del Cobre de Chile, 4.250%, 07/17/42 | | | 369,983 | | | | 0.0 | |
| | | | | | Costa Rica Government International Bond, 4.250%, 01/26/23 | | | 351,225 | | | | 0.0 | |
| | | | | | Costa Rica Government International Bond, 9.995%, 08/01/20 | | | 546,000 | | | | 0.1 | |
| | | | | | Croatia Government International Bond, 6.375%, 03/24/21 | | | 293,896 | | | | 0.0 | |
See Accompanying Notes to Financial Statements
26
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | El Salvador Government International Bond, 5.875%, 01/30/25 | | $ | 244,412 | | | | 0.0 | |
| | | | | | Empresa Nacional del Petroleo, 5.250%, 08/10/20 | | | 638,573 | | | | 0.1 | |
| | | | | | Financing of Infrastrucural Projects State Enterprise, 9.000%, 12/07/17 | | | 416,000 | | | | 0.0 | |
| | | | | | Gabonese Republic, 8.200%, 12/12/17 | | | 843,020 | | | | 0.1 | |
| | | | | | Guatemala Government Bond, 4.875%, 02/13/28 | | | 294,750 | | | | 0.0 | |
| | | | | | Hrvatska Elektroprivreda, 6.000%, 11/09/17 | | | 1,037,500 | | | | 0.1 | |
| | | | | | Hungary Government International Bond, 5.375%, 02/21/23 | | | 147,615 | | | | 0.0 | |
| | | | | | Hungary Government International Bond, 6.000%, 11/24/23 | | | 2,748,519 | | | | 0.2 | |
| | | | | | Hungary Government International Bond, 6.375%, 03/29/21 | | | 666,540 | | | | 0.1 | |
| | | | | | Hungary Government International Bond, 7.000%, 06/24/22 | | | 2,701,691 | | | | 0.2 | |
| | | | | | Hungary Government International Bond, 7.625%, 03/29/41 | | | 266,500 | | | | 0.0 | |
| | | | | | Indonesia Government International Bond, 3.750%, 04/25/22 | | | 1,789,783 | | | | 0.2 | |
| | | | | | Indonesia Government International Bond, 3.750%, 04/25/22 | | | 1,343,100 | | | | 0.1 | |
| | | | | | Ivory Coast Government International Bond, 5.750%, 12/31/32 | | | 1,161,895 | | | | 0.1 | |
| | | | | | Kazakhstan Temir Zholy Finance BV, 6.950%, 07/10/42 | | | 703,500 | | | | 0.1 | |
| | | | | | Lebanon Government International Bond, 6.100%, 10/04/22 | | | 1,092,488 | | | | 0.1 | |
| | | | | | Lebanon Government International Bond, 8.250%, 04/12/21 | | | 262,200 | | | | 0.0 | |
| | | | | | Lithuania Government International Bond, 6.625%, 02/01/22 | | | 1,351,625 | | | | 0.1 | |
| | | | | | Lithuania Government International Bond, 6.625%, 02/01/22 | | | 324,390 | | | | 0.0 | |
| | | | | | Mongolia Government International Bond, 5.125%, 12/05/22 | | | 843,750 | | | | 0.1 | |
| | | | | | Morocco Government International Bond, 4.250%, 12/11/22 | | | 512,750 | | | | 0.0 | |
| | | | | | Morocco Government International Bond, 4.250%, 12/11/22 | | | 615,300 | | | | 0.1 | |
| | | | | | Namibia International Bonds, 5.500%, 11/03/21 | | | 943,500 | | | | 0.1 | |
| | | | | | Nigeria Government International Bond, 6.750%, 01/28/21 | | | 406,000 | | | | 0.0 | |
| | | | | | Panama Government International Bond, 5.200%, 01/30/20 | | | 168,624 | | | | 0.0 | |
| | | | | | Panama Government International Bond, 6.700%, 01/26/36 | | | 926,887 | | | | 0.1 | |
| | | | | | Peruvian Government International Bond, 5.625%, 11/18/50 | | | 982,418 | | | | 0.1 | |
| | | | | | Petroleos de Venezuela SA, 4.900%, 10/28/14 | | | 221,371 | | | | 0.0 | |
| | | | | | Petroleos de Venezuela SA, 8.500%, 11/02/17 | | | 444,600 | | | | 0.0 | |
| | | | | | Petroleos de Venezuela SA, 9.000%, 11/17/21 | | | 2,573,560 | | | | 0.2 | |
| | | | | | Petroleos Mexicanos, 3.500%, 01/30/23 | | | 323,000 | | | | 0.0 | |
| | | | | | Petroleos Mexicanos, 5.500%, 01/21/21 | | | 1,236,633 | | | | 0.1 | |
| | | | | | Petroleos Mexicanos, 5.500%, 06/27/44 | | | 320,540 | | | | 0.0 | |
| | | | | | Petroleos Mexicanos, 8.000%, 05/03/19 | | | 449,750 | | | | 0.0 | |
| | | | | | Petroleum Co. of Trinidad & Tobago Ltd., 6.000%, 05/08/22 | | | 583,458 | | | | 0.1 | |
| | | | | | Philippine Government International Bond, 4.000%, 01/15/21 | | | 3,098,785 | | | | 0.3 | |
| | | | | | Poland Government International Bond, 3.000%, 03/17/23 | | | 685,526 | | | | 0.1 | |
| | | | | | Poland Government International Bond, 5.000%, 03/23/22 | | | 478,581 | | | | 0.0 | |
| | | | | | Republic of Angola Via Northern Lights III BV, 7.000%, 08/16/19 | | | 1,552,250 | | | | 0.1 | |
| | | | | | Republic of Belarus, 8.750%, 08/03/15 | | | 1,765,005 | | | | 0.2 | |
| | | | | | Republic of Ghana, 8.500%, 10/04/17 | | | 380,970 | | | | 0.0 | |
| | | | | | Republic of Iraq, 5.800%, 01/15/28 | | | 553,500 | | | | 0.1 | |
| | | | | | Republic of Latvia, 2.750%, 01/12/20 | | | 966,500 | | | | 0.1 | |
| | | | | | Republic of Paraguay, 4.625%, 01/25/23 | | | 605,400 | | | | 0.1 | |
| | | | | | Romanian Government International Bond, 4.375%, 08/22/23 | | | 133,848 | | | | 0.0 | |
| | | | | | Romanian Government International Bond, 6.750%, 02/07/22 | | | 611,770 | | | | 0.1 | |
| | | | | | Russian Agricultural Bank OJSC Via RSHB Capital SA, 5.298%, 12/27/17 | | | 2,974,720 | | | | 0.3 | |
| | | | | | Russian Agricultural Bank OJSC Via RSHB Capital SA, 5.298%, 12/27/17 | | | 637,440 | | | | 0.1 | |
| | | | | | Russian Federal Bond—OFZ, 8.150%, 02/03/27 | | | 6,500,806 | | | | 0.6 | |
See Accompanying Notes to Financial Statements
27
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Russian Foreign Bond—Eurobond, 7.500%, 03/31/30 | | $ | 817,344 | | | | 0.1 | |
| | | | | | Russian Federal Bond—OFZ, 7.050%, 01/19/28 | | | 10,088,686 | | | | 0.9 | |
| | | | | | Russian Railways via RZD Capital PLC, 5.700%, 04/05/22 | | | 884,000 | | | | 0.1 | |
| | | | | | Republic of Serbia, 5.250%, 11/21/17 | | | 652,050 | | | | 0.1 | |
| | | | | | Republic of Serbia, 7.250%, 09/28/21 | | | 388,938 | | | | 0.0 | |
| | | | | | South Africa Government Bond, 6.250%, 03/31/36 | | | 5,681,476 | | | | 0.5 | |
| | | | | | South Africa Government Bond, 6.500%, 02/28/41 | | | 1,133,295 | | | | 0.1 | |
| | | | | | South Africa Government Bond, 8.750%, 02/28/48 | | | 4,250,072 | | | | 0.4 | |
| | | | | | Sri Lanka Government International Bond, 5.875%, 07/25/22 | | | 521,250 | | | | 0.0 | |
| | | | | | State Oil Co. of the Azerbaijan Republic, 5.450%, 02/09/17 | | | 749,000 | | | | 0.1 | |
| | | | | | Transnet SOC Ltd., 4.000%, 07/26/22 | | | 1,540,000 | | | | 0.1 | |
| | | | | | Turkey Government International Bond, 5.125%, 03/25/22 | | | 747,495 | | | | 0.1 | |
| | | | | | Turkey Government International Bond, 6.250%, 09/26/22 | | | 237,500 | | | | 0.0 | |
| | | | | | Turkey Government International Bond, 7.375%, 02/05/25 | | | 3,024,640 | | | | 0.3 | |
| | | | | | Ukraine Government International Bond, 9.250%, 07/24/17 | | | 2,432,961 | | | | 0.2 | |
| | | | | | Uruguay Government International Bond, 7.625%, 03/21/36 | | | 368,130 | | | | 0.0 | |
| | | | | | Uruguay Government International Bond, 7.875%, 01/15/33 | | | 275,635 | | | | 0.0 | |
| | | | | | Vietnam Government International Bond, 6.750%, 01/29/20 | | | 936,000 | | | | 0.1 | |
| | | | | | Zambia Government International Bond, 5.375%, 09/20/22 | | | 298,875 | | | | 0 .0 | |
| |
| | | | | | Total Foreign Government Bonds
(Cost $128,527,225) | | | 126,848,111 | | | | 11 .0 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
|
| |
| | | | | | The Bank of New York Mellon Corp. | | | 1,416,240 | | | | 0.1 | |
| | | | | | | | | 657,570 | | | | 0.1 | |
| | | | | | Discover Financial Services | | | 2,377,280 | | | | 0.2 | |
| | | | | | PNC Financial Services Group, Inc. | | | 1,770,880 | | | | 0.2 | |
| | | | | | | | | 1,257,115 | | | | 0.1 | |
| | | | | | | | | 1,463,140 | | | | 0.1 | |
| |
| | | | | | Total Preferred Stock
(Cost $8,293,125) | | | 8,942,225 | | | | 0.8 | |
| |
| | | | | | Total Long-Term Investments
(Cost $1,196,600,146) | | | 1,228,033,258 | | | | 106.6 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
SHORT-TERM INVESTMENTS 11.1% |
| Securities Lending Collateralcc(1) 0.8% |
| | | | | | BNP Paribas Bank, Repurchase Agreement dated 03/28/13, 0.16%, due 04/01/13 (Repurchase Amount $466,006, collateralized by various U.S. Government Securities, 2.250%, Market Value plus accrued interest $475,318, due 05/31/14) | | | 465,998 | | | | 0.0 | |
| | | | | | Citigroup, Inc., Repurchase Agreement dated 03/28/13, 0.20%, due 04/01/13 (Repurchase Amount $2,213,742, collateralized by various U.S. Government and U.S. Government Agency Obligation, 0.000%–6.000%, Market Value plus accrued interest $2,257,968, due 03/31/13–03/15/53) | | | 2,213,693 | | | | 0.2 | |
| | | | | | Goldman Sachs & Co., Repurchase Agreement dated 03/28/13, 0.20%, due 04/01/13 (Repurchase Amount $2,213,742, collateralized by various U.S. Government Agency Obligations, 2.500%–7.000%, Market Value plus accrued interest $2,257,967, due 09/01/22–04/01/43) | | | 2,213,693 | | | | 0.2 | |
| | | | | | Merrill Lynch & Co., Inc., Repurchase Agreement dated 03/28/13, 0.20%, due 04/01/13 (Repurchase Amount $2,213,742, collateralized by various U.S. Government Agency Obligations, 0.000%–6.500%, Market Value plus accrued interest $2,257,968, due 04/25/13–01/01/47) | | | 2,213,693 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
28
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Royal Bank of Canada, Repurchase Agreement dated 03/28/13, 0.22%, due 04/01/13 (Repurchase Amount $2,213,746, collateralized by various U.S. Government Agency Obligations, 2.500%–4.000%, Market Value plus accrued interest $2,257,967, due 07/01/27–04/01/43) | | $ | 2,213,693 | | | | 0.2 | |
| | | | | | | | | 9,320,770 | | | | 0.8 | |
|
| Foreign Government Bonds 0.5% |
| | | | | | Mexico Cetes, 4.110%, 09/19/13
(Cost $4,766,815) | | | 4,764,170 | | | | 0.5 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
| | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class (Cost $113,473,000) | | | 113,473,000 | | | | 9 .8 | |
| |
| | | | | | Total Short-Term Investments
(Cost $127,560,585) | | | 127,557,940 | | | | 11.1 | |
| |
| | | | | | Total Investments in Securities
(Cost $1,324,160,731) | | $ | 1,355,591,198 | | | | 117.7 | |
| | | | | | Liabilities in Excess of
Other Assets | | | (203,394,838 | ) | | | (17 .7 | ) |
| | | | | | | | $ | 1,152,196,360 | | | | 100.0 | |
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. |
| ## | | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship and the U.S. Treasury guaranteed the debt issued by those organizations. |
| P | | Preferred Stock may be called prior to convertible date. |
| cc | | Securities purchased with cash collateral for securities loaned. |
| W | | Settlement is on a when-issued or delayed-delivery basis. |
| L | | Loaned security, a portion or all of the security is on loan at March 31, 2013. |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
| ˆ | | Interest only securities represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. Principal amount shown represents the notional amount on which current interest is calculated. Payments of principal on the pool reduce the value of the interest only security. |
| ˆˆ | | Principal only securities represent the right to receive the monthly principal payments on an underlying pool of mortgage loans. No payments of interest on the pool are passed through the principal only security. |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | | Cost for federal income tax purposes is $1,324,534,441. |
Net unrealized appreciation consists of: | | | | | | |
Gross Unrealized Appreciation | | | | $ | 40,244,962 | |
Gross Unrealized Depreciation | | | | | (9,188,205 | ) |
Net Unrealized Appreciation | | | | $ | 31,056,757 | |
See Accompanying Notes to Financial Statements
29
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of March 31, 2013 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
March 31, 2013
|
|---|
| | | | | | | | | | | | | | | | | | |
Investments, at fair value | | | | | | | | | | | | | | | | | | |
| | | | $ | 8,942,225 | | | $ | — | | | $ | — | | | $ | 8,942,225 | |
| | | | | — | | | | 315,166,748 | | | | — | | | | 315,166,748 | |
Collateralized Mortgage Obligations | | | | | — | | | | 196,976,456 | | | | — | | | | 196,976,456 | |
| | | | | 113,473,000 | | | | 14,084,940 | | | | — | | | | 127,557,940 | |
U.S. Treasury Obligations | | | | | — | | | | 147,096,186 | | | | — | | | | 147,096,186 | |
| | | | | — | | | | 126,848,111 | | | | — | | | | 126,848,111 | |
| | | | | — | | | | 76,658,818 | | | | — | | | | 76,658,818 | |
U.S. Government Agency Obligations | | | | | — | | | | 356,344,714 | | | | — | | | | 356,344,714 | |
Total Investments, at fair value | | | | $ | 122,415,225 | | | $ | 1,233,175,973 | | | $ | — | | | $ | 1,355,591,198 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| | | | | — | | | | 52,828 | | | | — | | | | 52,828 | |
| | | | | 18,233 | | | | — | | | | — | | | | 18,233 | |
Forward Foreign Currency Contracts | | | | | — | | | | 2,836,073 | | | | — | | | | 2,836,073 | |
| | | | $ | 122,433,458 | | | $ | 1,236,064,874 | | | $ | — | | | $ | 1,358,498,332 | |
| | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| | | | $ | — | | | $ | (2,673,708 | ) | | $ | — | | | $ | (2,673,708 | ) |
| | | | | (603,559 | ) | | | — | | | | — | | | | (603,559 | ) |
Forward Foreign Currency Contracts | | | | | — | | | | (2,786,944 | ) | | | — | | | | (2,786,944 | ) |
| | | | $ | (603,559 | ) | | $ | (5,460,652 | ) | | $ | — | | | $ | (6,064,211 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
At March 31, 2013, the following forward foreign currency contracts were outstanding for the ING Intermediate Bond Fund:
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| | | | | | | | | | | | $ | 3,309,000 | | | $ | 3,172,900 | | | $ | (136,100 | ) |
| | | | | | | | | | | | | 1,101,000 | | | | 1,053,681 | | | | (47,319 | ) |
| | | | | | | | | | | | | 1,593,000 | | | | 1,581,863 | | | | (11,137 | ) |
| | | | | | | | | | | | | 1,325 | | | | 1,326 | | | | 1 | |
| | | | | | | | | | | | | 4,477,000 | | | | 4,477,601 | | | | 601 | |
| | | | | | | | | | | | | 1,415,000 | | | | 1,387,754 | | | | (27,246 | ) |
| | | | | | | | | | | | | 8,562,375 | | | | 8,396,098 | | | | (166,277 | ) |
| | | | | | | | | | | | | 22,937 | | | | 22,953 | | | | 16 | |
| | | | | | | | | | | | | 1,425,000 | | | | 1,401,414 | | | | (23,586 | ) |
| | | | | | | | | | | | | 3,047,000 | | | | 2,958,435 | | | | (88,565 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,393,631 | | | | (22,369 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,393,631 | | | | (22,369 | ) |
| | | | | | | | | | | | | 1,415,000 | | | | 1,385,087 | | | | (29,913 | ) |
| | | | | | | | | | | | | 239,000 | | | | 235,579 | | | | (3,421 | ) |
| | | | | | | | | | | | | 1,491,380 | | | | 1,457,122 | | | | (34,258 | ) |
| | | | | | | | | | | | | 2,842,000 | | | | 2,809,196 | | | | (32,804 | ) |
| | | | | | | | | | | | | 83,823 | | | | 83,909 | | | | 86 | |
| | | | | | | | | | | | | 108,656 | | | | 108,707 | | | | 51 | |
| | | | | | | | | | | | | 1,416,000 | | | | 1,384,525 | | | | (31,475 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,413,111 | | | | (2,889 | ) |
| | | | | | | | | | | | | 1,409,000 | | | | 1,380,556 | | | | (28,444 | ) |
| | | | | | | | | | | | | 4,051,135 | | | | 3,832,269 | | | | (218,866 | ) |
| | | | | | | | | | | | | 2,763,752 | | | | 2,806,389 | | | | 42,637 | |
| | | | | | | | | | | | | 1,437,241 | | | | 1,444,519 | | | | 7,278 | |
| | | | | | | | | | | | | 2,765,999 | | | | 2,701,985 | | | | (64,014 | ) |
See Accompanying Notes to Financial Statements
30
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| | | | | | | | | | | | $ | 1,311,000 | | | $ | 1,365,870 | | | $ | 54,870 | |
| | | | | | | | | | | | | 797,000 | | | | 790,063 | | | | (6,937 | ) |
| | | | | | | | | | | | | 1,482,000 | | | | 1,449,037 | | | | (32,963 | ) |
| | | | | | | | | | | | | 1,426,000 | | | | 1,418,621 | | | | (7,379 | ) |
| | | | | | | | | | | | | 3,010,000 | | | | 3,030,401 | | | | 20,401 | |
| | | | | | | | | | | | | 26,822,944 | | | | 26,750,853 | | | | (72,091 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,393,631 | | | | (22,369 | ) |
| | | | | | | | | | | | | 150,890 | | | | 144,906 | | | | (5,984 | ) |
| | | | | | | | | | | | | 1,386,000 | | | | 1,321,859 | | | | (64,141 | ) |
| | | | | | | | | | | | | 1,086,000 | | | | 1,107,150 | | | | 21,150 | |
| | | | | | | | | | | | | 2,842,000 | | | | 2,852,498 | | | | 10,498 | |
| | | | | | | | | | | | | 1,660,000 | | | | 1,671,301 | | | | 11,301 | |
| | | | | | | | | | | | | 3,552,000 | | | | 3,540,850 | | | | (11,150 | ) |
| | | | | | | | | | | | | 1,418,000 | | | | 1,432,088 | | | | 14,088 | |
| | | | | | | | | | | | | 6,701,000 | | | | 6,822,219 | | | | 121,219 | |
| | | | | | | | | | | | | 1,070,274 | | | | 1,079,447 | | | | 9,173 | |
| | | | | | | | | | | | | 63,568 | | | | 63,531 | | | | (37 | ) |
| | | | | | | | | | | | | 4,206,623 | | | | 4,120,511 | | | | (86,112 | ) |
| | | | | | | | | | | | | 801,620 | | | | 817,049 | | | | 15,429 | |
| | | | | | | | | | | | | 2,851,661 | | | | 2,846,487 | | | | (5,174 | ) |
| | | | | | | | | | | | | 2,610,000 | | | | 2,610,373 | | | | 373 | |
| | | | | | | | | | | | | 8,477,862 | | | | 8,470,079 | | | | (7,783 | ) |
| | | | | | | | | | | | | 3,020,000 | | | | 3,010,950 | | | | (9,050 | ) |
| | | | | | | | | | | | | 2,897,000 | | | | 2,915,015 | | | | 18,015 | |
| | | | | | | | | | | | | 1,418,000 | | | | 1,396,652 | | | | (21,348 | ) |
| | | | | | | | | | | | | 1,418,000 | | | | 1,415,078 | | | | (2,922 | ) |
| | | | | | | | | | | | | 1,420,000 | | | | 1,412,759 | | | | (7,241 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,428,393 | | | | 12,393 | |
| | | | | | | | | | | | | 1,418,000 | | | | 1,396,441 | | | | (21,559 | ) |
| | | | | | | | | | | | | 58,517 | | | | 58,633 | | | | 116 | |
| | | | | | | | | | | | | 16,824,000 | | | | 16,866,730 | | | | 42,730 | |
| | | | | | | | | | | | | 5,625,000 | | | | 5,657,994 | | | | 32,994 | |
| | | | | | | | | | | | | 582,000 | | | | 586,578 | | | | 4,578 | |
| | | | | | | | | | | | | 2,600,000 | | | | 2,518,051 | | | | (81,949 | ) |
| | | | | | | | | | | | | 2,870,000 | | | | 2,880,397 | | | | 10,397 | |
| | | | | | | | | | | | | 8,221,020 | | | | 8,329,231 | | | | 108,211 | |
| | | | | | | | | | | | | 1,536,115 | | | | 1,552,910 | | | | 16,795 | |
| | | | | | | | | | | | | 2,854,000 | | | | 2,853,413 | | | | (587 | ) |
| | | | | | | | | | | | | | | | | | | | $ | (882,427 | ) |
| |
| | | | | | | | | | | | $ | 1,418,000 | | | $ | 1,410,332 | | | $ | 7,668 | |
| | | | | | | | | | | | | 3,240,000 | | | | 3,164,990 | | | | 75,010 | |
| | | | | | | | | | | | | 23,811,420 | | | | 24,164,417 | | | | (352,997 | ) |
| | | | | | | | | | | | | 4,510,252 | | | | 4,437,501 | | | | 72,751 | |
| | | | | | | | | | | | | 1,416,000 | | | | 1,439,117 | | | | (23,117 | ) |
| | | | | | | | | | | | | 2,025,363 | | | | 2,000,258 | | | | 25,105 | |
| | | | | | | | | | | | | 1,393,000 | | | | 1,445,074 | | | | (52,074 | ) |
| | | | | | | | | | | | | 8,746,702 | | | | 8,665,874 | | | | 80,828 | |
| | | | | | | | | | | | | 830,000 | | | | 844,910 | | | | (14,910 | ) |
| | | | | | | | | | | | | 1,418,000 | | | | 1,394,197 | | | | 23,803 | |
| | | | | | | | | | | | | 10,896 | | | | 10,912 | | | | (16 | ) |
| | | | | | | | | | | | | 2,870,000 | | | | 2,878,002 | | | | (8,002 | ) |
| | | | | | | | | | | | | 1,415,000 | | | | 1,393,993 | | | | 21,007 | |
| | | | | | | | | | | | | 9,605,000 | | | | 9,463,503 | | | | 141,497 | |
| | | | | | | | | | | | | 1,541,542 | | | | 1,529,996 | | | | 11,546 | |
| | | | | | | | | | | | | 1,029,873 | | | | 1,019,782 | | | | 10,091 | |
| | | | | | | | | | | | | 3,212,000 | | | | 3,166,992 | | | | 45,008 | |
See Accompanying Notes to Financial Statements
31
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| | | | | | | | | | | | $ | 912,000 | | | $ | 921,875 | | | $ | (9,875 | ) |
| | | | | | | | | | | | | 2,878,000 | | | | 2,838,231 | | | | 39,769 | |
| | | | | | | | | | | | | 3,120,000 | | | | 3,043,417 | | | | 76,583 | |
| | | | | | | | | | | | | 72,719 | | | | 72,860 | | | | (141 | ) |
| | | | | | | | | | | | | 2,807 | | | | 2,803 | | | | 4 | |
| | | | | | | | | | | | | 1,572 | | | | 1,575 | | | | (3 | ) |
| | | | | | | | | | | | | 12,601 | | | | 12,556 | | | | 45 | |
| | | | | | | | | | | | | 63,441 | | | | 63,532 | | | | (91 | ) |
| | | | | | | | | | | | | 568,000 | | | | 568,540 | | | | (540 | ) |
| | | | | | | | | | | | | 1,833,183 | | | | 1,708,174 | | | | 125,009 | |
| | | | | | | | | | | | | 1,418,000 | | | | 1,406,785 | | | | 11,215 | |
| | | | | | | | | | | | | 1,415,000 | | | | 1,380,218 | | | | 34,782 | |
| | | | | | | | | | | | | 1,415,000 | | | | 1,427,004 | | | | (12,004 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,421,819 | | | | (5,819 | ) |
| | | | | | | | | | | | | 1,415,000 | | | | 1,397,358 | | | | 17,642 | |
| | | | | | | | | | | | | 1,482,000 | | | | 1,477,331 | | | | 4,669 | |
| | | | | | | | | | | | | 1,412,000 | | | | 1,435,620 | | | | (23,620 | ) |
| | | | | | | | | | | | | 1,413,000 | | | | 1,408,983 | | | | 4,017 | |
| | | | | | | | | | | | | 1,469,000 | | | | 1,493,931 | | | | (24,931 | ) |
| | | | | | | | | | | | | 1,416,000 | | | | 1,404,277 | | | | 11,723 | |
| | | | | | | | | | | | | 1,416,000 | | | | 1,381,961 | | | | 34,039 | |
| | | | | | | | | | | | | 1,422,000 | | | | 1,402,366 | | | | 19,634 | |
| | | | | | | | | | | | | 6,922,643 | | | | 7,183,333 | | | | (260,690 | ) |
| | | | | | | | | | | | | 8,617,579 | | | | 8,393,296 | | | | 224,283 | |
| | | | | | | | | | | | | 1,925,625 | | | | 1,887,836 | | | | 37,789 | |
| | | | | | | | | | | | | 85,444 | | | | 85,648 | | | | (204 | ) |
| �� | | | | | | | | | | | | 64,600 | | | | 64,582 | | | | 18 | |
| | | | | | | | | | | | | 2,870,000 | | | | 2,884,004 | | | | (14,004 | ) |
| | | | | | | | | | | | | 2,842,000 | | | | 2,844,617 | | | | (2,617 | ) |
| | | | | | | | | | | | | 3,319,000 | | | | 3,373,293 | | | | (54,293 | ) |
| | | | | | | | | | | | | 2,851,057 | | | | 2,853,413 | | | | (2,356 | ) |
| | | | | | | | | | | | | 8,640,000 | | | | 8,642,851 | | | | (2,851 | ) |
| | | | | | | | | | | | | 1,418,000 | | | | 1,394,407 | | | | 23,593 | |
| | | | | | | | | | | | | 1,478,000 | | | | 1,483,808 | | | | (5,808 | ) |
| | | | | | | | | | | | | 1,472,940 | | | | 1,463,835 | | | | 9,105 | |
| | | | | | | | | | | | | 5,651,000 | | | | 5,716,627 | | | | (65,627 | ) |
| | | | | | | | | | | | | 259,347 | | | | 256,012 | | | | 3,335 | |
| | | | | | | | | | | | | 2,287,582 | | | | 2,232,091 | | | | 55,491 | |
| | | | | | | | | | | | | 4,462,435 | | | | 4,347,321 | | | | 115,114 | |
| | | | | | | | | | | | | 2,882,000 | | | | 2,636,282 | | | | 245,718 | |
| | | | | | | | | | | | | 42,109 | | | | 42,192 | | | | (83 | ) |
| | | | | | | | | | | | | 12,999 | | | | 12,999 | | | | 0 | |
| | | | | | | | | | | | | 3,559,000 | | | | 3,562,227 | | | | (3,227 | ) |
| | | | | | | | | | | | | 804,000 | | | | 804,049 | | | | (49 | ) |
| | | | | | | | | | | | | 2,615,000 | | | | 2,619,894 | | | | (4,894 | ) |
| | | | | | | | | | | | | 3,297,000 | | | | 3,307,240 | | | | (10,240 | ) |
| | | | | | | | | | | | | 909,000 | | | | 918,567 | | | | (9,567 | ) |
| | | | | | | | | | | | | 1,601,000 | | | | 1,600,068 | | | | 932 | |
| | | | | | | | | | | | | 1,415,000 | | | | 1,426,821 | | | | (11,821 | ) |
| | | | | | | | | | | | | 1,414,000 | | | | 1,378,333 | | | | 35,667 | |
| | | | | | | | | | | | | 2,900,000 | | | | 2,995,808 | | | | (95,808 | ) |
| | | | | | | | | | | | | 2,911,000 | | | | 2,896,275 | | | | 14,725 | |
| | | | | | | | | | | | | 2,560,000 | | | | 2,422,887 | | | | 137,113 | |
| | | | | | | | | | | | | 3,015,430 | | | | 2,961,441 | | | | 53,989 | |
| | | | | | | | | | | | | 861,000 | | | | 863,424 | | | | (2,424 | ) |
| | | | | | | | | | | | | 1,311,000 | | | | 1,357,072 | | | | (46,072 | ) |
| | | | | | | | | | | | | 26,494,392 | | | | 26,418,381 | | | | 76,011 | |
| | | | | | | | | | | | | 3,527,000 | | | | 3,530,248 | | | | (3,248 | ) |
| | | | | | | | | | | | | 2,038,000 | | | | 2,030,633 | | | | 7,367 | |
| | | | | | | | | | | | | 41,840 | | | | 41,298 | | | | 542 | |
| | | | | | | | | | | | | 5,918,542 | | | | 5,945,417 | | | | (26,875 | ) |
| | | | | | | | | | | | | 2,205,354 | | | | 2,069,326 | | | | 136,028 | |
| | | | | | | | | | | | | 1,469,124 | | | | 1,377,581 | | | | 91,543 | |
| | | | | | | | | | | | | 82,074 | | | | 82,092 | | | | (18 | ) |
| | | | | | | | | | | | | 5,684,000 | | | | 5,714,270 | | | | (30,270 | ) |
See Accompanying Notes to Financial Statements
32
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| | | | | | | | | | | | $ | 78,110 | | | $ | 77,994 | | | $ | 116 | |
| | | | | | | | | | | | | 2,728,000 | | | | 2,718,469 | | | | 9,531 | |
| | | | | | | | | | | | | 5,662,000 | | | | 5,591,718 | | | | 70,282 | |
| | | | | | | | | | | | | 23,937 | | | | 23,645 | | | | 292 | |
| | | | | | | | | | | | | 2,501,000 | | | | 2,518,393 | | | | (17,393 | ) |
| | | | | | | | | | | | | 5,728,000 | | | | 5,858,537 | | | | (130,537 | ) |
| | | | | | | | | | | | | 1,808,000 | | | | 1,789,357 | | | | 18,643 | |
| | | | | | | | | | | | | | | | | | | | $ | 931,556 | |
ING Intermediate Bond Fund Open Futures Contracts on March 31, 2013:
Contract Description
| | | | Number
of Contracts
| | Expiration Date
| | Notional Value
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| | | | | | | | | | | | | | | | | | |
U.S. Treasury 2-Year Note | | | | | 333 | | | | 06/28/13 | | | $ | 73,410,889 | | | $ | (5,637 | ) |
U.S. Treasury 5-Year Note | | | | | 132 | | | | 06/28/13 | | | | 16,375,219 | | | | 18,233 | |
U.S. Treasury Ultra Long Bond | | | | | 173 | | | | 06/19/13 | | | | 27,263,719 | | | | (300,523 | ) |
| | | | | | | | | | | | $ | 117,049,827 | | | $ | (287,927 | ) |
| | | | | | | | | | | | | | | | | | |
U.S. Treasury 10-Year Note | | | | | (422 | ) | | | 06/19/13 | | | | (55,697,409 | ) | | | (190,661 | ) |
| | | | | (243 | ) | | | 06/19/13 | | | | (35,105,906 | ) | | | (106,738 | ) |
| | | | | | | | | | | | $ | (90,803,315 | ) | | $ | (297,399 | ) |
ING Intermediate Bond Fund Over-the-Counter Credit Default Swap Agreements Outstanding on March 31, 2013:
Credit Default Swaps on Corporate and Sovereign Issues — Buy Protection(1)
Counterparty
| | | | Reference
Entity/Obligation
| | Buy/Sell
Protection
| | (Pay)/
Receive
Fixed
Rate (%)
| | Termination
Date
| | Notional Amount(2)
| | Fair
Value(3)
| | Upfront
Payments
Paid/
(Received)
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| | | | | | | | | | | | | USD 1,311,000 | | | $ | 7,482 | | | $ | 40,077 | | | $ | (32,595 | ) |
| | | | | | | | | | | | | USD 640,000 | | | | 3,653 | | | | 20,385 | | | | (16,732 | ) |
| | | | | | | | | | | | | USD 5,079,000 | | | | 28,987 | | | | 84,496 | | | | (55,509 | ) |
| | | | | | | | | | | | | | | | $ | 40,122 | | | $ | 144,958 | | | $ | (104,836 | ) |
Credit Default Swaps on Corporate and Sovereign Issues—Sell Protection(4)
Counterparty
| | | | Reference
Entity/Obligation
| | Buy/Sell
Protection
| | (Pay)/
Receive
Fixed
Rate (%)
| | Termination
Date
| | Implied
Credit
Spread at
03/31/13
(%) (5)
| | Notional
Amount(2)
| | Fair
Value(3)
| | Upfront
Payments
Paid/
(Received)
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| | | | | | | | | | | | | | | | | USD 1,311,000 | | | $ | (349,873 | ) | | $ | (50,685 | ) | | $ | (299,188 | ) |
| | | | | | | | | | | | | | | | | USD 641,000 | | | | (171,067 | ) | | | (22,718 | ) | | | (148,349 | ) |
| | | | | | | | | | | | | | | | | USD 1,271,000 | | | | (339,198 | ) | | | (44,475 | ) | | | (294,723 | ) |
| | | | | | | | | | | | | | | | | USD 2,540,000 | | | | (677,863 | ) | | | (44,604 | ) | | | (633,259 | ) |
| | | | | | | | | | | | | | | | | | | | $ | (1,538,001 | ) | | | (162,482 | ) | | $ | (1,375,519 | ) |
| (1) | | If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (2) | | The maximum amount of future payments (undiscounted) that a Fund as seller of protection could be required to make or receive as a buyer of credit protection under a credit default swap agreement would be an amount equal to the notional amount of the agreement. |
See Accompanying Notes to Financial Statements
33
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING INTERMEDIATE BOND FUND
| (3) | | The fair values for credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. Increasing fair values, in absolute terms, when compared to the notional amount of the agreement, represent a deterioration of the referenced obligation’s credit soundness and a greater likelihood or risk of default or other credit event occurring. |
| (4) | | If the Fund is a seller of protection, and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will generally either i) Pay to the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations, or underlying securities comprising a referenced index or ii) Pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising a referenced index. |
| (5) | | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues are disclosed in each Fund’s Portfolio of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swaps on asset-backed securities or credit indices, the quoted market prices and resulting market values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
ING Intermediate Bond Fund Over-the-Counter Interest Rate Swap Agreements Outstanding on March 31, 2013:
| | | | Termination
Date
| | Notional Amount
| | Fair
Value
| | Upfront
Payments
Paid/
(Received)
| | Unrealized
Appreciation/
(Depreciation)
| |
|---|
Receive a floating rate based on the Brazil Cetip Interbank Deposit Rate Annualized and pay a fixed rate equal to 10.365% Counterparty: Goldman Sachs & Co. | | | | | | | | | ) | $ | — | | | $ | (1,135,707 | ) | | | | |
Receive a fixed rate equal to 5.590% and pay a floating rate based on the 28-day MXN-TIE-BANXICO Counterparty: Deutsche Bank AG | | | | | | | | | | | — | | | | 12,706 | | | | | |
| | | | | | | | | ) | $ | — | | | $ | (1,123,001 | ) | | | | |
See Accompanying Notes to Financial Statements
34
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
CORPORATE BONDS/NOTES 64.7% |
| Consumer Discretionary 4.7% |
| | | | | | Amazon.com, Inc., 0.650%, 11/27/15 | | $ | 422,767 | | | | 0.3 | |
| | | | | | Amazon.com, Inc., 1.200%, 11/29/17 | | | 199,278 | | | | 0.1 | |
| | | | | | Cablevision Systems Corp., 8.625%, 09/15/17 | | | 585,000 | | | | 0.3 | |
| | | | | | Comcast Corp., 6.300%, 11/15/17 | | | 417,688 | | | | 0.2 | |
| | | | | | COX Communications, Inc., 5.450%, 12/15/14 | | | 79,954 | | | | 0.1 | |
| | | | | | COX Communications, Inc., 5.500%, 10/01/15 | | | 407,082 | | | | 0.2 | |
| | | | | | DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 1.750%, 01/15/18 | | | 494,997 | | | | 0.3 | |
| | | | | | Discovery Communications LLC, 3.700%, 06/01/15 | | | 249,096 | | | | 0.2 | |
| | | | | | DISH DBS Corp., 7.125%, 02/01/16 | | | 558,125 | | | | 0.3 | |
| | | | | | Home Depot, Inc., 5.250%, 12/16/13 | | | 176,936 | | | | 0.1 | |
| | | | | | Home Depot, Inc., 5.400%, 03/01/16 | | | 579,039 | | | | 0.3 | |
| | | | | | Jarden Corp., 7.500%, 05/01/17 | | | 568,125 | | | | 0.3 | |
| | | | | | McDonald’s Corp., 0.750%, 05/29/15 | | | 503,096 | | | | 0.3 | |
| | | | | | MGM Mirage, 7.500%, 06/01/16 | | | 556,250 | | | | 0.3 | |
| | | | | | NBCUniversal Media, LLC, 3.650%, 04/30/15 | | | 701,578 | | | | 0.4 | |
| | | | | | Time Warner Cable, Inc., 7.500%, 04/01/14 | | | 408,561 | | | | 0.2 | |
| | | | | | Time Warner, Inc., 3.150%, 07/15/15 | | | 329,819 | | | | 0.2 | |
| | | | | | Viacom, Inc., 1.250%, 02/27/15 | | | 420,128 | | | | 0.2 | |
| | | | | | Walt Disney Co., 1.100%, 12/01/17 | | | 724,654 | | | | 0.4 | |
| | | | | | | | | 8,382,173 | | | | 4.7 | |
|
| |
| | | | | | Altria Group, Inc., 4.125%, 09/11/15 | | | 491,224 | | | | 0.3 | |
| | | | | | Anheuser-Busch InBev Worldwide, Inc., 0.800%, 07/15/15 | | | 554,362 | | | | 0.3 | |
| | | | | | Anheuser-Busch InBev Worldwide, Inc., 5.375%, 11/15/14 | | | 90,286 | | | | 0.1 | |
| | | | | | Archer-Daniels-Midland Co., 5.450%, 03/15/18 | | | 248,479 | | | | 0.1 | |
| | | | | | Beam, Inc., 1.875%, 05/15/17 | | | 335,494 | | | | 0.2 | |
| | | | | | Campbell Soup Co., 0.599%, 08/01/14 | | | 239,714 | | | | 0.1 | |
| | | | | | Coca-Cola Co., 0.750%, 03/13/15 | | | 383,129 | | | | 0.2 | |
| | | | | | Coca-Cola Co., 1.800%, 09/01/16 | | | 491,504 | | | | 0.3 | |
| | | | | | Colgate-Palmolive Co., 1.250%, 05/01/14 | | | 148,484 | | | | 0.1 | |
| | | | | | Colgate-Palmolive Co., 1.300%, 01/15/17 | | | 334,870 | | | | 0.2 | |
| | | | | | ConAgra Foods, Inc., 1.300%, 01/25/16 | | | 605,209 | | | | 0.4 | |
| | | | | | Costco Wholesale Corp., 1.125%, 12/15/17 | | | 456,180 | | | | 0.3 | |
| | | | | | Diageo Capital PLC, 1.500%, 05/11/17 | | | 423,340 | | | | 0.2 | |
| | | | | | Kellogg Co., 1.125%, 05/15/15 | | | 479,724 | | | | 0.3 | |
| | | | | | Kimberly-Clark Corp., 6.125%, 08/01/17 | | | 244,591 | | | | 0.1 | |
| | | | | | Kraft Foods Group, Inc., 1.625%, 06/04/15 | | | 457,177 | | | | 0.3 | |
| | | | | | Kroger Co/The, 6.400%, 08/15/17 | | | 243,991 | | | | 0.1 | |
| | | | | | Lorillard Tobacco Co., 3.500%, 08/04/16 | | | 321,913 | | | | 0.2 | |
| | | | | | Molson Coors Brewing Co., 2.000%, 05/01/17 | | | 204,980 | | | | 0.1 | |
| | | | | | PepsiCo, Inc., 0.700%, 08/13/15 | | | 748,555 | | | | 0.4 | |
| | | | | | PepsiCo, Inc., 1.250%, 08/13/17 | | | 421,958 | | | | 0.2 | |
| | | | | | PepsiCo, Inc., 0.700%, 02/26/16 | | | 200,195 | | | | 0.1 | |
| | | | | | Philip Morris International, Inc., 2.500%, 05/16/16 | | | 706,794 | | | | 0.4 | |
| | | | | | Procter & Gamble Co., 0.700%, 08/15/14 | | | 279,626 | | | | 0.2 | |
| | | | | | Procter & Gamble Co., 1.450%, 08/15/16 | | | 674,701 | | | | 0.4 | |
| | | | | | Reynolds American, Inc., 1.050%, 10/30/15 | | | 523,516 | | | | 0.3 | |
| | | | | | SABMiller Holdings, Inc., 1.850%, 01/15/15 | | | 414,760 | | | | 0.2 | |
| | | | | | Smithfield Foods, Inc., 7.750%, 07/01/17 | | | 581,875 | | | | 0.3 | |
| | | | | | Target Corp., 5.875%, 07/15/16 | | | 327,187 | | | | 0.2 | |
| | | | | | Walgreen Co., 1.800%, 09/15/17 | | | 419,684 | | | | 0.2 | |
| | | | | | Wal-Mart Stores, Inc., 1.625%, 04/15/14 | | | 400,433 | | | | 0.2 | |
| | | | | | | | | 12,453,935 | | | | 7.0 | |
|
| |
| | | | | | Afren PLC, 11.500%, 02/01/16 | | | 595,000 | | | | 0.3 | |
| | | | | | Alliance Oil Co. Ltd., 9.875%, 03/11/15 | | | 328,125 | | | | 0.2 | |
| | | | | | BP Capital Markets PLC, 0.700%, 11/06/15 | | | 540,431 | | | | 0.3 | |
| | | | | | BP Capital Markets PLC, 2.248%, 11/01/16 | | | 208,276 | | | | 0.1 | |
| | | | | | Cameron International Corp., 1.600%, 04/30/15 | | | 471,574 | | | | 0.3 | |
| | | | | | Canadian Natural Resources Ltd., 1.450%, 11/14/14 | | | 250,855 | | | | 0.1 | |
| | | | | | Chevron Corp., 1.104%, 12/05/17 | | | 421,013 | | | | 0.2 | |
| | | | | | ConocoPhillips, 4.600%, 01/15/15 | | | 467,282 | | | | 0.3 | |
| | | | | | ConocoPhillips, 5.200%, 05/15/18 | | | 332,591 | | | | 0.2 | |
See Accompanying Notes to Financial Statements
35
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Enterprise Products Operating L.P., 5.600%, 10/15/14 | | $ | 150,129 | | | | 0.1 | |
| | | | | | Enterprise Products Operating, LLC, 1.250%, 08/13/15 | | | 360,827 | | | | 0.2 | |
| | | | | | Marathon Oil Corp., 0.900%, 11/01/15 | | | 499,098 | | | | 0.3 | |
| | | | | | Petrobras International Finance Co.—Pifco, 2.875%, 02/06/15 | | | 125,868 | | | | 0.1 | |
| | | | | | Petrobras International Finance Co.—Pifco, 3.500%, 02/06/17 | | | 517,682 | | | | 0.3 | |
| | | | | | Phillips 66, 1.950%, 03/05/15 | | | 204,490 | | | | 0.1 | |
| | | | | | Shell International Finance BV, 3.100%, 06/28/15 | | | 704,318 | | | | 0.4 | |
| | | | | | TNK-BP Finance SA, 6.625%, 03/20/17 | | | 567,500 | | | | 0.3 | |
| | | | | | Total Capital International SA, 0.750%, 01/25/16 | | | 422,335 | | | | 0.2 | |
| | | | | | Total Capital International SA, 1.550%, 06/28/17 | | | 254,434 | | | | 0.2 | |
| | | | | | TransCanada PipeLines Ltd., 0.750%, 01/15/16 | | | 599,735 | | | | 0.3 | |
| | | | | | | | | 8,021,563 | | | | 4.5 | |
|
| |
| | | | | | ABN AMRO Bank NV, 1.375%, 01/22/16 | | | 450,585 | | | | 0.3 | |
| | | | | | ACE INA Holdings, Inc., 5.700%, 02/15/17 | | | 327,232 | | | | 0.2 | |
| | | | | | Alfa Bank OJSC Via Alfa Bond Issuance PLC, 7.875%, 09/25/17 | | | 565,600 | | | | 0.3 | |
| | | | | | Allstate Corp., 6.200%, 05/16/14 | | | 397,994 | | | | 0.2 | |
| | | | | | American Express Credit Corp., 1.750%, 06/12/15 | | | 409,955 | | | | 0.2 | |
| | | | | | American Express Credit Corp., 2.800%, 09/19/16 | | | 303,108 | | | | 0.2 | |
| | | | | | American Honda Finance Corp., 1.000%, 08/11/15 | | | 418,737 | | | | 0.2 | |
| | | | | | American Honda Finance Corp., 1.850%, 09/19/14 | | | 203,540 | | | | 0.1 | |
| | | | | | American International Group, Inc., 5.600%, 10/18/16 | | | 841,683 | | | | 0.5 | |
| | | | | | Australia & New Zealand Banking Group Ltd., 0.900%, 02/12/16 | | | 602,098 | | | | 0.3 | |
| | | | | | Banco BTG Pactual SA/Cayman Islands, 4.875%, 07/08/16 | | | 530,000 | | | | 0.3 | |
| | | | | | Bancolombia SA, 4.250%, 01/12/16 | | | 529,400 | | | | 0.3 | |
| | | | | | Bank of America Corp., 1.500%, 10/09/15 | | | 1,080,219 | | | | 0.6 | |
| | | | | | Bank of America Corp., 3.750%, 07/12/16 | | | 702,562 | | | | 0.4 | |
| | | | | | Bank of America Corp., 1.250%, 01/11/16 | | | 598,110 | | | | 0.3 | |
| | | | | | Bank of Montreal, 0.800%, 11/06/15 | | | 674,464 | | | | 0.4 | |
| | | | | | Bank of New York Mellon Corp., 1.200%, 02/20/15 | | | 814,475 | | | | 0.5 | |
| | | | | | Bank of Nova Scotia, 0.750%, 10/09/15 | | | 675,151 | | | | 0.4 | |
| | | | | | Bank of Nova Scotia, 2.550%, 01/12/17 | | | 335,652 | | | | 0.2 | |
| | | | | | Barclays Bank PLC, 5.000%, 09/22/16 | | | 978,031 | | | | 0.6 | |
| | | | | | BB&T Corp., 1.600%, 08/15/17 | | | 556,158 | | | | 0.3 | |
| | | | | | BB&T Corp., 2.050%, 04/28/14 | | | 221,686 | | | | 0.1 | |
| | | | | | BB&T Corp., 5.200%, 12/23/15 | | | 233,378 | | | | 0.1 | |
| | | | | | BBVA Banco Continental SA, 2.250%, 07/29/16 | | | 493,350 | | | | 0.3 | |
| | | | | | BBVA US Senior SAU, 4.664%, 10/09/15 | | | 493,544 | | | | 0.3 | |
| | | | | | Berkshire Hathaway Finance Corp., 1.600%, 05/15/17 | | | 337,024 | | | | 0.2 | |
| | | | | | Berkshire Hathaway Finance Corp., 2.450%, 12/15/15 | | | 859,718 | | | | 0.5 | |
| | | | | | BlackRock, Inc., 1.375%, 06/01/15 | | | 432,512 | | | | 0.2 | |
| | | | | | BNP Paribas Home Loan Covered Bonds SA, 2.200%, 11/02/15 | | | 206,770 | | | | 0.1 | |
| | | | | | Boeing Capital Corp., 2.125%, 08/15/16 | | | 417,175 | | | | 0.2 | |
| | | | | | Canadian Imperial Bank of Commerce/Canada, 0.900%, 10/01/15 | | | 586,290 | | | | 0.3 | |
| | | | | | Caterpillar Financial Services Corp., 0.700%, 11/06/15 | | | 587,888 | | | | 0.3 | |
| | | | | | Caterpillar Financial Services Corp., 0.700%, 02/26/16 | | | 250,028 | | | | 0.1 | |
| | | | | | Caterpillar Financial Services Corp., 1.100%, 05/29/15 | | | 227,691 | | | | 0.1 | |
| | | | | | Charles Schwab Corp., 0.850%, 12/04/15 | | | 472,221 | | | | 0.3 | |
| | | | | | CIT Group, Inc., 5.000%, 05/15/17 | | | 538,750 | | | | 0.3 | |
| | | | | | Citigroup, Inc., 1.250%, 01/15/16 | | | 523,768 | | | | 0.3 | |
| | | | | | Citigroup, Inc., 1.300%, 04/01/16 | | | 544,382 | | | | 0.3 | |
| | | | | | Citigroup, Inc., 2.650%, 03/02/15 | | | 717,612 | | | | 0.4 | |
| | | | | | Citigroup, Inc., 5.125%, 05/05/14 | | | 6,276 | | | | 0.0 | |
| | | | | | Citigroup, Inc., 6.000%, 12/13/13 | | | 107,773 | | | | 0.1 | |
| | | | | | Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 1.850%, 01/10/14 | | | 189,176 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
36
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 2.125%, 10/13/15 | | $ | 369,957 | | | | 0.2 | |
| | | | | | Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, 1.700%, 03/19/18 | | | 249,290 | | | | 0.1 | |
| | | | | | Credit Suisse/New York NY, 3.500%, 03/23/15 | | | 784,566 | | | | 0.4 | |
| | | | | | Daimler Finance North America LLC, 1.250%, 01/11/16 | | | 702,932 | | | | 0.4 | |
| | | | | | Deutsche Bank AG/London, 3.250%, 01/11/16 | | | 502,735 | | | | 0.3 | |
| | | | | | Discover Bank/Greenwood DE, 2.000%, 02/21/18 | | | 502,317 | | | | 0.3 | |
| | | | | | Fifth Third Bancorp., 3.625%, 01/25/16 | | | 835,521 | | | | 0.5 | |
| | | | | | Ford Motor Credit Co., LLC, 2.750%, 05/15/15 | | | 612,773 | | | | 0.3 | |
| | | | | | General Electric Capital Corp., 1.000%, 12/11/15 | | | 609,163 | | | | 0.3 | |
| | | | | | General Electric Capital Corp., 3.750%, 11/14/14 | | | 315,148 | | | | 0.2 | |
| | | | | | General Electric Capital Corp., 4.750%, 09/15/14 | | | 127,033 | | | | 0.1 | |
| | | | | | General Electric Capital Corp., 4.875%, 03/04/15 | | | 992,898 | | | | 0.6 | |
| | | | | | Goldman Sachs Group, Inc., 0.702%, 07/22/15 | | | 247,583 | | | | 0.1 | |
| | | | | | Goldman Sachs Group, Inc., 0.805%, 01/12/15 | | | 759,022 | | | | 0.4 | |
| | | | | | Goldman Sachs Group, Inc., 1.296%, 02/07/14 | | | 150,763 | | | | 0.1 | |
| | | | | | Goldman Sachs Group, Inc., 3.625%, 02/07/16 | | | 415,555 | | | | 0.2 | |
| | | | | | Goldman Sachs Group, Inc./The, 1.600%, 11/23/15 | | | 503,894 | | | | 0.3 | |
| | | | | | Hartford Financial Services Group, Inc., 4.750%, 03/01/14 | | | 245,213 | | | | 0.1 | |
| | | | | | HCP, Inc., 2.700%, 02/01/14 | | | 143,239 | | | | 0.1 | |
| | | | | | HCP, Inc., 3.750%, 02/01/16 | | | 534,098 | | | | 0.3 | |
| | | | | | Health Care REIT, Inc., 2.250%, 03/15/18 | | | 254,702 | | | | 0.1 | |
| | | | | | Health Care REIT, Inc., 3.625%, 03/15/16 | | | 330,819 | | | | 0.2 | |
| | | | | | HSBC USA, Inc., 2.375%, 02/13/15 | | | 597,046 | | | | 0.3 | |
| | | | | | Hyundai Capital America, 1.625%, 10/02/15 | | | 181,340 | | | | 0.1 | |
| | | | | | International Lease Finance Corp., 6.500%, 09/01/14 | | | 578,870 | | | | 0.3 | |
| | | | | | Intesa Sanpaolo SpA, 3.125%, 01/15/16 | | | 195,653 | | | | 0.1 | |
| | | | | | John Deere Capital Corp., 1.250%, 12/02/14 | | | 418,803 | | | | 0.2 | |
| | | | | | John Deere Capital Corp., 0.750%, 01/22/16 | | | 301,115 | | | | 0.2 | |
| | | | | | John Deere Capital Corp., 1.600%, 03/03/14 | | | 540,215 | | | | 0.3 | |
| | | | | | JPMorgan Chase & Co., 3.150%, 07/05/16 | | | 1,034,678 | | | | 0.6 | |
| | | | | | JPMorgan Chase & Co., 3.700%, 01/20/15 | | | 909,585 | | | | 0.5 | |
| | | | | | Manufacturers & Traders Trust Co., 1.450%, 03/07/18 | | | 501,399 | | | | 0.3 | |
| | | | | | MassMutual Global Funding II, 3.125%, 04/14/16 | | | 331,973 | | | | 0.2 | |
| | | | | | MetLife, Inc., 1.756%, 12/15/17 | | | 424,814 | | | | 0.2 | |
| | | | | | MetLife Institutional Funding II, 1.625%, 04/02/15 | | | 477,940 | | | | 0.3 | |
| | | | | | Metropolitan Life Global Funding I, 1.700%, 06/29/15 | | | 250,316 | | | | 0.1 | |
| | | | | | Morgan Stanley, 1.750%, 02/25/16 | | | 143,219 | | | | 0.1 | |
| | | | | | Morgan Stanley, 2.875%, 01/24/14 | | | 341,584 | | | | 0.2 | |
| | | | | | Morgan Stanley, 5.450%, 01/09/17 | | | 280,170 | | | | 0.2 | |
| | | | | | Morgan Stanley, 6.000%, 04/28/15 | | | 299,701 | | | | 0.2 | |
| | | | | | National Australia Bank Ltd./New York, 1.600%, 08/07/15 | | | 544,656 | | | | 0.3 | |
| | | | | | National Australia Bank Ltd., 1.250%, 03/08/18 | | | 299,582 | | | | 0.2 | |
| | | | | | National Rural Utilities Cooperative Finance Corp., 1.125%, 11/01/13 | | | 195,853 | | | | 0.1 | |
| | | | | | New York Life Global Funding, 1.300%, 01/12/15 | | | 298,041 | | | | 0.2 | |
| | | | | | PNC Funding Corp., 5.625%, 02/01/17 | | | 628,999 | | | | 0.4 | |
| | | | | | PNC Funding Corp., 2.700%, 09/19/16 | | | 331,925 | | | | 0.2 | |
| | | | | | Principal Financial Group, Inc., 1.850%, 11/15/17 | | | 335,974 | | | | 0.2 | |
| | | | | | Principal Life Global Funding II, 0.904%, 07/09/14 | | | 289,842 | | | | 0.2 | |
| | | | | | ProLogis L.P., 7.625%, 08/15/14 | | | 165,449 | | | | 0.1 | |
| | | | | | Prudential Financial, Inc., 3.875%, 01/14/15 | | | 684,181 | | | | 0.4 | |
| | | | | | Realty Income Corp., 2.000%, 01/31/18 | | | 421,386 | | | | 0.2 | |
| | | | | | Regions Financial Corp., 5.750%, 06/15/15 | | | 488,550 | | | | 0.3 | |
| | | | | | Regions Financial Corp., 7.750%, 11/10/14 | | | 264,697 | | | | 0.1 | |
| | | | | | Royal Bank of Canada, 0.850%, 03/08/16 | | | 625,433 | | | | 0.4 | |
| | | | | | Royal Bank of Canada, 1.500%, 01/16/18 | | | 607,504 | | | | 0.3 | |
| | | | | | Royal Bank of Scotland Group PLC, 2.550%, 09/18/15 | | | 437,071 | | | | 0.2 | |
| | | | | | Santander Holdings USA, Inc./PA, 3.000%, 09/24/15 | | | 628,910 | | | | 0.4 | |
See Accompanying Notes to Financial Statements
37
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Simon Property Group L.P., 4.200%, 02/01/15 | | $ | 328,197 | | | | 0.2 | |
| | | | | | SLM Corp., 3.875%, 09/10/15 | | | 416,758 | | | | 0.2 | |
| | | | | | SouthTrust Corp., 5.800%, 06/15/14 | | | 266,982 | | | | 0.2 | |
| | | | | | State Street Corp., 2.875%, 03/07/16 | | | 580,666 | | | | 0.3 | |
| | | | | | Sumitomo Mitsui Banking Corp., 1.500%, 01/18/18 | | | 680,622 | | | | 0.4 | |
| | | | | | SunTrust Bank/Atlanta GA, 0.578%, 08/24/15 | | | 492,597 | | | | 0.3 | |
| | | | | | SunTrust Bank/Atlanta GA, 0.584%, 04/01/15 | | | 326,583 | | | | 0.2 | |
| | | | | | | | | 235,899 | | | | 0.1 | |
| | | | | | UBS AG/Stamford CT, 3.875%, 01/15/15 | | | 264,036 | | | | 0.1 | |
| | | | | | US Bancorp, 2.200%, 11/15/16 | | | 848,139 | | | | 0.5 | |
| | | | | | Wachovia Bank NA, 4.800%, 11/01/14 | | | 265,846 | | | | 0.2 | |
| | | | | | Wells Fargo & Co., 2.100%, 05/08/17 | | | 665,011 | | | | 0.4 | |
| | | | | | Wells Fargo & Co., 1.500%, 01/16/18 | | | 421,801 | | | | 0.2 | |
| | | | | | Westpac Banking Corp., 1.125%, 09/25/15 | | | 272,208 | | | | 0.2 | |
| | | | | | Westpac Banking Corp., 2.000%, 08/14/17 | | | 206,178 | | | | 0.1 | |
| | | | | | | | | 51,958,984 | | | | 29.2 | |
|
| |
| | | | | | AbbVie, Inc., 1.200%, 11/06/15 | | | 554,626 | | | | 0.3 | |
| | | | | | Aetna, Inc., 1.500%, 11/15/17 | | | 503,976 | | | | 0.3 | |
| | | | | | Amgen, Inc., 1.875%, 11/15/14 | | | 336,646 | | | | 0.2 | |
| | | | | | Cigna Corp., 2.750%, 11/15/16 | | | 504,027 | | | | 0.3 | |
| | | | | | Covidien International Finance SA, 1.350%, 05/29/15 | | | 583,588 | | | | 0.3 | |
| | | | | | Eli Lilly & Co., 4.200%, 03/06/14 | | | 548,866 | | | | 0.3 | |
| | | | | | Genentech, Inc., 4.750%, 07/15/15 | | | 681,321 | | | | 0.4 | |
| | | | | | GlaxoSmithKline Capital PLC, 0.750%, 05/08/15 | | | 692,430 | | | | 0.4 | |
| | | | | �� | HCA, Inc., 6.500%, 02/15/16 | | | 548,750 | | | | 0.3 | |
| | | | | | Johnson & Johnson, 1.200%, 05/15/14 | | | 429,399 | | | | 0.2 | |
| | | | | | McKesson Corp., 0.950%, 12/04/15 | | | 666,256 | | | | 0.4 | |
| | | | | | Medtronic, Inc., 3.000%, 03/15/15 | | | 524,016 | | | | 0.3 | |
| | | | | | Novartis Capital Corp., 2.900%, 04/24/15 | | | 573,953 | | | | 0.3 | |
| | | | | | Pfizer, Inc., 5.350%, 03/15/15 | | | 856,551 | | | | 0.5 | |
| | | | | | | | | 335,710 | | | | 0.2 | |
| | | | | | Sanofi-Aventis SA, 1.625%, 03/28/14 | | | 295,795 | | | | 0.2 | |
| | | | | | St. Jude Medical, Inc., 2.500%, 01/15/16 | | | 596,905 | | | | 0.3 | |
| | | | | | Thermo Fisher Scientific, Inc., 2.250%, 08/15/16 | | | 333,705 | | | | 0.2 | |
| | | | | | UnitedHealth Group, Inc., 0.850%, 10/15/15 | | | 673,455 | | | | 0.4 | |
| | | | | | Valeant Pharmaceuticals International, 6.750%, 10/01/17 | | | 539,375 | | | | 0.3 | |
| | | | | | WellPoint, Inc., 5.250%, 01/15/16 | | | 578,236 | | | | 0.3 | |
| | | | | | Zoetis, Inc., 1.150%, 02/01/16 | | | 301,033 | | | | 0.2 | |
| | | | | | | | | 11,658,619 | | | | 6.6 | |
|
| |
| | | | | | | | | 421,257 | | | | 0.2 | |
| | | | | | Brunswick Rail Finance Ltd., 6.500%, 11/01/17 | | | 531,250 | | | | 0.3 | |
| | | | | | CSX Corp., 6.250%, 04/01/15 | | | 479,682 | | | | 0.3 | |
| | | | | | General Electric Co., 0.850%, 10/09/15 | | | 441,742 | | | | 0.2 | |
| | | | | | United Parcel Service, Inc., 1.125%, 10/01/17 | | | 281,266 | | | | 0.2 | |
| | | | | | United Parcel Service, Inc., 3.875%, 04/01/14 | | | 176,813 | | | | 0.1 | |
| | | | | | United Technologies Corp., 1.200%, 06/01/15 | | | 673,675 | | | | 0.4 | |
| | | | | | Waste Management, Inc., 2.600%, 09/01/16 | | | 419,674 | | | | 0.2 | |
| | | | | | | | | 3,425,359 | | | | 1.9 | |
|
| Information Technology 3.7% |
| | | | | | Cisco Systems, Inc., 1.625%, 03/14/14 | | | 533,594 | | | | 0.3 | |
| | | | | | Computer Sciences Corp., 2.500%, 09/15/15 | | | 130,505 | | | | 0.1 | |
| | | | | | Dell, Inc., 2.100%, 04/01/14 | | | 302,153 | | | | 0.2 | |
| | | | | | eBay, Inc., 1.350%, 07/15/17 | | | 419,187 | | | | 0.2 | |
| | | | | | International Business Machines Corp., 0.550%, 02/06/15 | | | 664,323 | | | | 0.4 | |
| | | | | | International Business Machines Corp., 1.950%, 07/22/16 | | | 467,192 | | | | 0.3 | |
| | | | | | Intel Corp., 1.350%, 12/15/17 | | | 476,371 | | | | 0.3 | |
| | | | | | Intel Corp., 1.950%, 10/01/16 | | | 259,221 | | | | 0.1 | |
| | | | | | Microsoft Corp., 2.950%, 06/01/14 | | | 615,527 | | | | 0.3 | |
| | | | | | NetApp, Inc., 2.000%, 12/15/17 | | | 377,685 | | | | 0.2 | |
| | | | | | Oracle Corp., 1.200%, 10/15/17 | | | 551,454 | | | | 0.3 | |
| | | | | | Oracle Corp., 3.750%, 07/08/14 | | | 356,335 | | | | 0.2 | |
| | | | | | Symantec Corp., 2.750%, 09/15/15 | | | 439,905 | | | | 0.2 | |
| | | | | | Texas Instruments, Inc., 0.450%, 08/03/15 | | | 486,971 | | | | 0.3 | |
| | | | | | Xerox Corp., 2.950%, 03/15/17 | | | 184,600 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
38
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Xerox Corp., 4.250%, 02/15/15 | | $ | 316,145 | | | | 0.2 | |
| | | | | | | | | 6,581,168 | | | | 3.7 | |
|
| |
| | | | | | Barrick Gold Corp., 1.750%, 05/30/14 | | | 276,075 | | | | 0.1 | |
| | | | | | BHP Billiton Finance USA Ltd., 5.500%, 04/01/14 | | | 140,857 | | | | 0.1 | |
| | | | | | Cemex Finance, LLC, 9.500%, 12/14/16 | | | 543,750 | | | | 0.3 | |
| | | | | | Dow Chemical Co., 5.900%, 02/15/15 | | | 563,148 | | | | 0.3 | |
| | | | | | Eastman Chemical Co., 2.400%, 06/01/17 | | | 508,292 | | | | 0.3 | |
| | | | | | Ecolab, Inc., 1.000%, 08/09/15 | | | 589,896 | | | | 0.3 | |
| | | | | | EI du Pont de Nemours & Co., 1.750%, 03/25/14 | | | 683,744 | | | | 0.4 | |
| | | | | | Freeport-McMoRan Copper & Gold, Inc., 1.400%, 02/13/15 | | | 404,090 | | | | 0.2 | |
| | | | | | Rio Tinto Finance USA Ltd., 1.875%, 11/02/15 | | | 333,476 | | | | 0.2 | |
| | | | | | Xstrata Canada Financial Corp., 2.850%, 11/10/14 | | | 98,428 | | | | 0.1 | |
| | | | | | Xstrata Finance Canada Ltd., 1.800%, 10/23/15 | | | 333,958 | | | | 0.2 | |
| | | | | | | | | 4,475,714 | | | | 2.5 | |
|
| Telecommunication Services 2.2% |
| | | | | | AT&T, Inc., 0.800%, 12/01/15 | | | 524,296 | | | | 0.3 | |
| | | | | | AT&T, Inc., 1.400%, 12/01/17 | | | 335,185 | | | | 0.2 | |
| | | | | | AT&T, Inc., 5.625%, 06/15/16 | | | 285,674 | | | | 0.2 | |
| | | | | | Cellco Partnership / Verizon Wireless Capital, LLC, 5.550%, 02/01/14 | | | 155,901 | | | | 0.1 | |
| | | | | | Sprint Nextel Corp., 6.000%, 12/01/16 | | | 543,750 | | | | 0.3 | |
| | | | | | Verizon Communications, Inc., 1.950%, 03/28/14 | | | 1,311,778 | | | | 0.8 | |
| | | | | | Vodafone, 2.875%, 03/16/16 | | | 416,779 | | | | 0.2 | |
| | | | | | Vodafone Group PLC, 0.900%, 02/19/16 | | | 242,614 | | | | 0.1 | |
| | | | | | | | | 3,815,977 | | | | 2.2 | |
|
| |
| | | | | | Calpine Corp., 7.250%, 10/15/17 | | | 532,500 | | | | 0.3 | |
| | | | | | Commonwealth Edison Co., 1.625%, 01/15/14 | | | 407,700 | | | | 0.2 | |
| | | | | | Dominion Resources, Inc., 1.800%, 03/15/14 | | | 113,269 | | | | 0.1 | |
| | | | | | Dominion Resources, Inc., 2.250%, 09/01/15 | | | 207,052 | | | | 0.1 | |
| | | | | | Entergy Louisiana, LLC, 1.875%, 12/15/14 | | | 102,083 | | | | 0.1 | |
| | | | | | NextEra Energy Capital Holdings, Inc., 1.200%, 06/01/15 | | | 585,705 | | | | 0.3 | |
| | | | | | Georgia Power Co., 0.625%, 11/15/15 | | | 690,071 | | | | 0.4 | |
| | | | | | Georgia Power Co., 0.750%, 08/10/15 | | | 363,512 | | | | 0.2 | |
| | | | | | Progress Energy, Inc., 5.625%, 01/15/16 | | | 363,557 | | | | 0.2 | |
| | | | | | PSEG Power, LLC, 2.750%, 09/15/16 | | | 262,327 | | | | 0.1 | |
| | | | | | Sempra Energy, 2.000%, 03/15/14 | | | 268,251 | | | | 0.2 | |
| | | | | | Southern California Edison Co., 5.750%, 03/15/14 | | | 247,329 | | | | 0.1 | |
| | | | | | Southern Co., 4.150%, 05/15/14 | | | 98,670 | | | | 0.1 | |
| | | | | | | | | 4,242,026 | | | | 2.4 | |
| |
| | | | | | Total Corporate Bonds/Notes
(Cost $114,805,273) | | | 115,015,518 | | | | 64.7 | |
| | | |
COLLATERALIZED MORTGAGE OBLIGATIONS 5.2% | | |
| | | | | | BAMLL-DB Trust, 2.343%, 04/13/29 | | | 295,310 | | | | 0.2 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 4.621%, 07/10/43 | | | 453,998 | | | | 0.3 | |
| | | | | | Bear Stearns Commercial Mortgage Securities Trust 2007-PWR18, 5.957%, 06/11/50 | | | 338,263 | | | | 0.2 | |
| | | | | | CD 2007-CD4 Commercial Mortgage Trust, 5.205%, 12/11/49 | | | 229,984 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass Through Certificates, 3.424%, 03/10/31 | | | 164,000 | | | | 0.1 | |
| | | | | | Commercial Mortgage Pass-Through Certificates Series 2006-C5, 5.308%, 12/15/39 | | | 271,838 | | | | 0.1 | |
| | | | | | Commercial Mortgage Trust 2005-GG3, 4.619%, 08/10/42 | | | 165,559 | | | | 0.1 | |
| | | | | | CSMC Series 2009-RR3, 5.342%, 12/15/43 | | | 51,395 | | | | 0.0 | |
| | | | | | CW Capital Cobalt Ltd., 5.731%, 05/15/46 | | | 24,191 | | | | 0.0 | |
| | | | | | Del Coronado Trust, 4.000%, 03/15/26 | | | 100,000 | | | | 0.1 | |
| | | | | | GE Capital Commercial Mortgage Corp., 5.306%, 11/10/45 | | | 258,356 | | | | 0.1 | |
| | | | | | Greenwich Capital Commercial Funding Corp., 5.381%, 03/10/39 | | | 379,525 | | | | 0.2 | |
| | | | | | GS Mortgage Securities Corp. II, 5.479%, 11/10/39 | | | 99,189 | | | | 0.1 | |
| | | | | | GS Mortgage Securities Corp. II, 5.506%, 04/10/38 | | | 201,930 | | | | 0.1 | |
| | | | | | GS Mortgage Securities Trust 2013-NYC5 A, 2.318%, 01/10/30 | | | 153,809 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
39
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | | | $ | 171,119 | | | | 0.1 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 4.158%, 01/12/39 | | | 197,164 | | | | 0.1 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.298%, 05/15/47 | | | 337,784 | | | | 0.2 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.792%, 06/15/49 | | | 216,444 | | | | 0.1 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.790%, 02/15/51 | | | 124,559 | | | | 0.1 | |
| | | | | | JP Morgan Chase Commerical Mortgage Securities Corp., 5.247%, 01/12/43 | | | 11,380 | | | | 0.0 | |
| | | | | | JPMorgan Chase Commercial Mortgage Securities Corp. Series 2005-CIBC13, 5.298%, 01/12/43 | | | 169,335 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.150%, 04/15/30 | | | 129,888 | | | | 0.1 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.300%, 11/15/38 | | | 350,569 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust, 5.347%, 11/15/38 | | | 878,466 | | | | 0.5 | |
| | | | | | ML-CFC Commercial Mortgage Trust 2007-9, 5.644%, 09/12/49 | | | 256,913 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I Trust 2006-TOP21, 5.185%, 10/12/52 | | | 273,559 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I Trust 2007-TOP25, 5.514%, 11/12/49 | | | 44,675 | | | | 0.0 | |
| | | | | | Morgan Stanley Capital I Trust 2007-TOP27, 5.651%, 06/11/42 | | | 347,266 | | | | 0.2 | |
| | | | | | Morgan Stanley Capital I, 4.989%, 08/13/42 | | | 135,839 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I, 5.187%, 11/14/42 | | | 293,253 | | | | 0.2 | |
| | | | | | Morgan Stanley Capital I, 5.575%, 04/12/49 | | | 319,449 | | | | 0.2 | |
| | | | | | Morgan Stanley Capital I, 5.649%, 12/15/44 | | | 401,327 | | | | 0.2 | |
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust, 3.134%, 12/15/48 | | | 144,992 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I Trust 2005-HQ6, 4.973%, 08/13/42 | | | 576,947 | | | | 0.3 | |
| | | | | | Motel 6 Trust, 1.500%, 10/05/25 | | | 100,765 | | | | 0.1 | |
| | | | | | Motel 6 Trust, 1.948%, 10/05/25 | | | 275,579 | | | | 0.2 | |
| | | | | | NorthStar 2012-1 Mortgage Trust, 1.404%, 08/25/29 | | | 136,796 | | | | 0.1 | |
| | | | | | Wachovia Bank Commercial Mortgage Trust, 5.230%, 07/15/41 | | | 68,525 | | | | 0.0 | |
| |
| | | | | | Total Collateralized Mortgage Obligations
(Cost $9,152,031) | | | 9,149,940 | | | | 5 .2 | |
| |
ASSET-BACKED SECURITIES 10.0% |
| Automobile Asset-Backed Securities 2.5% |
| | | | | | Capital Auto Receivables Asset Trust 2013-1, 0.790%, 06/20/17 | | | 389,756 | | | | 0.2 | |
| | | | | | CarMax Auto Owner Trust, 0.890%, 08/17/18 | | | 326,145 | | | | 0.2 | |
| | | | | | CarMax Auto Owner Trust, 1.250%, 06/15/17 | | | 566,674 | | | | 0.3 | |
| | | | | | Honda Auto Receivables Owner Trust, 0.620%, 03/21/19 | | | 486,921 | | | | 0.3 | |
| | | | | | Hyundai Auto Lease Securitization Trust, 0.660%, 06/15/16 | | | 481,141 | | | | 0.3 | |
| | | | | | Hyundai Auto Receivables Trust, 0.750%, 09/17/18 | | | 768,254 | | | | 0.4 | |
| | | | | | Nissan Auto Receivables Owner Trust, 1.000%, 07/16/18 | | | 655,773 | | | | 0.4 | |
| | | | | | SMART Trust/Australia, 1.050%, 10/14/18 | | | 698,338 | | | | 0.4 | |
| | | | | | Toyota Auto Receivables Owner Trust, 0.750%, 02/16/16 | | | 98,363 | | | | 0.0 | |
| | | | | | | | | 4,471,365 | | | | 2.5 | |
|
| Credit Card Asset-Backed Securities 0.6% |
| | | | | | Citibank Credit Card Issuance Trust, 5.650%, 09/20/19 | | | 697,778 | | | | 0.4 | |
| | | | | | Dryrock Issuance Trust, 0.640%, 08/15/18 | | | 417,360 | | | | 0.2 | |
| | | | | | | | | 1,115,138 | | | | 0.6 | |
|
| Other Asset-Backed Securities 6.9% |
| | | | | | Aimco CDO, 0.552%, 10/20/19 | | | 428,708 | | | | 0.2 | |
| | | | | | Apidos CDO II, 1.101%, 12/21/18 | | | 469,816 | | | | 0.3 | |
| | | | | | ARES X CLO Ltd., 2.280%, 09/18/17 | | | 418,843 | | | | 0.2 | |
| | | | | | Atrium III, 2.287%, 10/27/16 | | | 244,529 | | | | 0.1 | |
| | | | | | Atrium IV, 1.030%, 06/08/19 | | | 480,046 | | | | 0.3 | |
| | | | | | Black Diamond CLO Ltd., 0.550%, 06/20/17 | | | 369,781 | | | | 0.2 | |
| | | | | | Castle Garden Funding, 0.547%, 10/27/20 | | | 366,574 | | | | 0.2 | |
| | | | | | Castle Garden Funding, 1.037%, 10/27/20 | | | 239,692 | | | | 0.1 | |
| | | | | | Castle Garden Funding, 5.037%, 10/27/20 | | | 300,399 | | | | 0.2 | |
| | | | | | Clydesdale CLO 2005 Ltd, 0.755%, 12/06/17 | | | 487,777 | | | | 0.3 | |
| | | | | | Clydesdale Strategic CLO Ltd., 1.289%, 01/20/17 | | | 498,091 | | | | 0.3 | |
See Accompanying Notes to Financial Statements
40
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | CNH Equipment Trust, 0.650%, 04/16/18 | | $ | 588,806 | | | | 0.3 | |
| | | | | | Emporia Preferred Funding II Corp., 0.583%, 10/18/18 | | | 443,479 | | | | 0.2 | |
| | | | | | Emporia Preferred Funding, 0.803%, 10/18/18 | | | 543,566 | | | | 0.3 | |
| | | | | | Grayston CLO Ltd., 1.590%, 08/15/16 | | | 404,754 | | | | 0.2 | |
| | | | | | Gulf Stream—Compass CLO 2005-I Ltd, 2.190%, 05/15/17 | | | 359,248 | | | | 0.2 | |
| | | | | | Gulf Stream—Compass CLO 2005-II Ltd, 1.102%, 01/24/20 | | | 473,683 | | | | 0.3 | |
| | | | | | Gulf Stream—Sextant CLO 2006-1 Ltd., 0.989%, 08/21/20 | | | 277,516 | | | | 0.2 | |
| | | | | | Gulf Stream—Sextant CLO Ltd., 0.629%, 08/21/20 | | | 485,983 | | | | 0.3 | |
| | | | | | Gulf Stream Compass CLO Ltd., 0.710%, 05/15/17 | | | 471,702 | | | | 0.3 | |
| | | | | | Hewett’s Island CLO II Ltd., 2.680%, 12/15/16 | | | 499,970 | | | | 0.3 | |
| | | | | | Integral Funding, Inc., 4.804%, 09/27/17 | | | 349,965 | | | | 0.2 | |
| | | | | | Katonah VI Ltd., 2.480%, 09/20/16 | | | 500,220 | | | | 0 .3 | |
| | | | | | Landmark IV CDO Ltd, 2.430%, 12/15/16 | | | 469,275 | | | | 0.3 | |
| | | | | | Landmark VI CDO Ltd, 0.805%, 01/14/18 | | | 485,826 | | | | 0.3 | |
| | | | | | Lightpoint CLO Ltd., 0.540%, 09/15/17 | | | 387,428 | | | | 0.2 | |
| | | | | | Madison Park Funding I Ltd., 2.192%, 05/10/19 | | | 242,399 | | | | 0.1 | |
| | | | | | Madison Park Funding I Ltd., 5.042%, 05/10/19 | | | 250,202 | | | | 0.1 | |
| | | | | | Marathon CLO I Ltd, 2.201%, 07/26/19 | | | 298,887 | | | | 0.2 | |
| | | | | | Whitney CLO Ltd., 0.737%, 03/01/17 | | | 374,601 | | | | 0.2 | |
| | | | | | | | | 12,211,766 | | | | 6.9 | |
| |
| | | | | | Total Asset-Backed Securities
(Cost $17,803,165) | | | 17,798,269 | | | | 10.0 | |
| |
FOREIGN GOVERNMENT BONDS 0.6% |
| Foreign Government Securities 0.6% |
| | | | | | Svenska Handelsbanken AB, 0.362%, 05/04/14 | | | 999,524 | | | | 0.6 | |
| |
| | | | | | Total Foreign Government Bonds
(Cost $999,500) | | | 999,524 | | | | 0.6 | |
| |
U.S. TREASURY OBLIGATIONS 2.8% |
| |
| | | | | | | | | 557,477 | | | | 0.3 | |
|
| |
| | | | | | | | | 2,317,544 | | | | 1.3 | |
| | | | | | | | | 1,936,664 | | | | 1.1 | |
| | | | | | | | | 141,055 | | | | 0.1 | |
| | | | | | | | | 84,947 | | | | 0.0 | |
| | | | | | | | | 4,480,210 | | | | 2.5 | |
| |
| | | | | | Total U.S. Treasury Obligations
(Cost $5,026,649) | | | 5,037,687 | | | | 2.8 | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS 13.8% |
| Federal Home Loan Mortgage Corporation 5.3%## |
| | | | | | | | | 1,960,782 | | | | 1.1 | |
| | | | | | | | | 2,184,958 | | | | 1.2 | |
| | | | | | | | | 331,027 | | | | 0.2 | |
| | | | | | | | | 2,372,397 | | | | 1.3 | |
| | | | | | | | | 914,236 | | | | 0.5 | |
| | | | | | | | | 621,724 | | | | 0.4 | |
| | | | | | | | | 73,512 | | | | 0.1 | |
| | | | | | | | | 70,121 | | | | 0.0 | |
| | | | | | | | | 865,994 | | | | 0.5 | |
| | | | | | | | | 9,394,751 | | | | 5.3 | |
|
| Federal National Mortgage Association 7.3%## |
| | | | | | | | | 924,320 | | | | 0.5 | |
| | | | | | | | | 1,167,267 | | | | 0.7 | |
| | | | | | | | | 970,384 | | | | 0.5 | |
| | | | | | | | | 989,706 | | | | 0.6 | |
| | | | | | | | | 1,262,781 | | | | 0.7 | |
| | | | | | | | | 1,061,400 | | | | 0.6 | |
| | | | | | | | | 1,106,487 | | | | 0.6 | |
| | | | | | | | | 1,612,081 | | | | 0.9 | |
| | | | | | | | | 797,488 | | | | 0.4 | |
| | | | | | | | | 319,723 | | | | 0.2 | |
| | | | | | | | | 2,816,682 | | | | 1.6 | |
| | | | | | | | | 13,028,319 | | | | 7.3 | |
|
| Government National Mortgage Association 1.2% |
| | | | | | | | | 2,154,962 | | | | 1.2 | |
| |
| | | | | | Total U.S. Government Agency Obligations
(Cost $24,479,384) | | | 24,578,032 | | | | 13 .8 | |
| |
| | | | | | Total Long-Term Investments
(Cost $172,266,002) | | | 172,578,970 | | | | 97.1 | |
| |
SHORT-TERM INVESTMENTS 1.7% |
| |
| | | | | | Vodafone, 4.000%, 01/02/14
(Cost $497,560) | | | 497,560 | | | | 0.3 | |
|
| Securities Lending Collateralcc(1) 0.7% |
| | | | | | Citigroup, Inc., Repurchase Agreement dated 03/28/13, 0.15%, due 04/01/13 (Repurchase Amount $226,861, collateralized by various U.S. Government Securities, 0.250%-6.125%, Market Value plus accrued interest $231,395, due 10/31/13-02/15/43) | | | 226,857 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
41
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| | | | | | Mizuho Securities USA Inc., Repurchase Agreement dated 03/28/13, 0.28%, due 04/01/13 (Repurchase Amount $1,000,031, collateralized by various U.S. Government /U.S. Government Agency Obligations, 0.000%-9.000%, Market Value plus accrued interest $1,020,001, due 02/15/14-04/15/54) | | $ | 1,000,000 | | | | 0.6 | |
| | | | | | | | | 1,226,857 | | | | 0.7 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
| | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $1,282,000) | | | 1,282,000 | | | | 0.7 | |
| |
| | | | | | Total Short-Term Investments
(Cost $3,006,417) | | | 3,006,417 | | | | 1 .7 | |
| |
| | | | | | Total Investments in Securities
(Cost $175,272,419) | | $ | 175,585,387 | | | | 98.8 | |
| | | | | | Assets in Excess of
Other Liabilities | | | 2,077,854 | | | | 1.2 | |
| | | | | | | | $ | 177,663,241 | | | | 100.0 | |
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. |
| ## | | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship and the U.S. Treasury guaranteed the debt issued by those organizations. |
| cc | | Securities purchased with cash collateral for securities loaned. |
| W | | Settlement is on a when-issued or delayed-delivery basis. |
| L | | Loaned security, a portion or all of the security is on loan at March 31, 2013. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | | Cost for federal income tax purposes is $175,273,366. |
| |
Net unrealized appreciation consists of: | | | | | | |
Gross Unrealized Appreciation | | | | $ | 471,565 | |
Gross Unrealized Depreciation | | | | | (159,544 | ) |
Net Unrealized Appreciation | | | | $ | 312,021 | |
See Accompanying Notes to Financial Statements
42
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013 (CONTINUED)
ING SHORT TERM BOND FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of March 31, 2013 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
March 31, 2013
|
|---|
| | | | | | | | | | | | | | | | | | |
Investments, at fair value | | | | | | | | | | | | | | | | | | |
| | | | $ | — | | | $ | 115,015,518 | | | $ | — | | | $ | 115,015,518 | |
Collateralized Mortgage Obligations | | | | | — | | | | 9,149,940 | | | | — | | | | 9,149,940 | |
| | | | | 1,282,000 | | | | 1,724,417 | | | | — | | | | 3,006,417 | |
| | | | | — | | | | 999,524 | | | | — | | | | 999,524 | |
U.S. Treasury Obligations | | | | | — | | | | 5,037,687 | | | | — | | | | 5,037,687 | |
| | | | | — | | | | 17,798,269 | | | | — | | | | 17,798,269 | |
U.S. Government Agency Obligations | | | | | — | | | | 24,578,032 | | | | — | | | | 24,578,032 | |
Total Investments, at fair value | | | | $ | 1,282,000 | | | $ | 174,303,387 | | | $ | — | | | $ | 175,585,387 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| | | | | 4,944 | | | | — | | | | — | | | | 4,944 | |
| | | | $ | 1,286,944 | | | $ | 174,303,387 | | | $ | — | | | $ | 175,590,331 | |
| | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| | | | $ | (132,814 | ) | | $ | — | | | $ | — | | | $ | (132,814 | ) |
| | | | $ | (132,814 | ) | | $ | — | | | $ | — | | | $ | (132,814 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
ING Short Term Bond Fund Open Futures Contracts on March 31, 2013:
Contract Description
| | | | Number
of Contracts
| | Expiration
Date
| | Notional
Value
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| | | | | | | | | | | | | | | | | | |
U.S. Treasury 2-Year Note | | | | | 212 | | | | 06/28/13 | | | $ | 46,736,061 | | | $ | (2,687 | ) |
| | | | | 13 | | | | 06/19/13 | | | | 1,878,094 | | | | 4,944 | |
| | | | | | | | | | | | $ | 48,614,155 | | | $ | 2,257 | |
| | | | | | | | | | | | | | | | | | |
U.S. Treasury 10-Year Note | | | | | (245 | ) | | | 06/19/13 | | | | (32,336,173 | ) | | | (126,983 | ) |
U.S. Treasury 5-Year Note | | | | | (23 | ) | | | 06/28/13 | | | | (2,853,258 | ) | | | (3,144 | ) |
| | | | | | | | | | | | $ | (35,189,431 | ) | | $ | (130,127 | ) |
See Accompanying Notes to Financial Statements
43
PORTFOLIO OF INVESTMENTS
AS OF MARCH 31, 2013
ING STRATEGIC INCOME FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
INVESTMENT COMPANIES 80.8% |
| Affiliated Investment Companies 80.8% |
| | | | | | ING Floating Rate Fund — Class I | | $ | 1,026,584 | | | | 20.1 | |
| | | | | | ING Emerging Markets Corporate Debt Fund Class P | | | 644,257 | | | | 12.6 | |
| | | | | | ING Emerging Markets Hard Currency Sovereign Debt Fund Class P | | | 252,438 | | | | 4.9 | |
| | | | | | ING Emerging Markets Local Currency Debt Fund Class P | | | 903,545 | | | | 17.6 | |
| | | | | | ING High Yield Bond Fund — Class I | | | 1,311,371 | | | | 25.6 | |
| |
| | | | | | Total Investment Companies
(Cost $4,083,819) | | | 4,138,195 | | | | 80.8 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
COLLATERALIZED MORTGAGE OBLIGATIONS 3.8% | | |
| | | | | | Banc of America Commercial Mortgage Trust 2007-3, 5.623%, 06/10/49 | | | 9,882 | | | | 0.2 | |
| | | | | | Banc of America Alternative Loan Trust 2007-2, 6.000%, 06/25/37 | | | 10,228 | | | | 0.2 | |
| | | | | | Banc of America Merrill Lynch Commercial Mortgage, Inc., 5.339%, 07/10/43 | | | 10,320 | | | | 0.2 | |
| | | | | | First Union National Bank Com Mort Pas Thr Cert Ser 2001 C4, 6.000%, 12/12/33 | | | 10,116 | | | | 0.2 | |
| | | | | | GS Mort Sec Corp. II Commercial Mort Ps Thr Cert Ser 2004-GG2, 5.644%, 08/10/38 | | | 9,203 | | | | 0.2 | |
| | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 0.361%, 12/15/47 | | | 28,656 | | | | 0.5 | |
| | | | | | JP Morgan Mortgage Trust 2006-S4, 6.000%, 01/25/37 | | | 14,759 | | | | 0.3 | |
| | | | | | LB Commercial Conduit Mortgage Trust, 5.864%, 07/15/44 | | | 11,584 | | | | 0.2 | |
| | | | | | LB Commercial Mortgage Trust 2007-C3, 5.864%, 07/15/44 | | | 9,858 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2005-C3, 4.954%, 07/15/40 | | | 9,704 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2005-C3, 5.013%, 07/15/40 | | | 8,508 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2000-C4, 8.150%, 07/15/32 | | | 10,674 | | | | 0.2 | |
| | | | | | LB-UBS Commercial Mortgage Trust 2004-C6, 5.206%, 08/15/36 | | | 9,916 | | | | 0.2 | |
| | | | | | Morgan Stanley Bank of America Merrill Lynch Trust, 1.530%, 12/15/48 | | | 8,343 | | | | 0.1 | |
| | | | | | Morgan Stanley Capital I Trust 2004-HQ3, 5.079%, 01/13/41 | | | 10,023 | | | | 0.2 | |
| | | | | | Prime Mortgage Trust 2007-1, 5.500%, 03/25/37 | | | 15,650 | | | | 0.3 | |
| | | | | | Salomon Brothers Mortgage Securities VII, Inc., 7.000%, 05/18/32 | | | 10,140 | | | | 0.2 | |
| |
| | | | | | Total Collateralized Mortgage Obligations
(Cost $197,407) | | | 197,564 | | | | 3.8 | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS 15.7% |
| Federal National Mortgage Association 10.5%## |
| | | | | | | | | 351,886 | | | | 6.9 | |
| | | | | | | | | 153,156 | | | | 3.0 | |
| | | | | | | | | 29,567 | | | | 0.6 | |
| | | | | | | | | 534,609 | | | | 10.5 | |
|
| Government National Mortgage Association 5.2% |
| | | | | | | | | 268,164 | | | | 5.2 | |
| |
| | | | | | Total U.S. Government Agency Obligations
(Cost $794,777) | | | 802,773 | | | | 15.7 | |
| |
U.S. TREASURY OBLIGATIONS 12.2% |
| |
| | | | | | | | | 89,196 | | | | 1.8 | |
| | | | | | | | | 184,884 | | | | 3.6 | |
| | | | | | | | | 274,080 | | | | 5.4 | |
|
| |
| | | | | | | | | 70,016 | | | | 1.3 | |
| | | | | | | | | 40,034 | | | | 0.8 | |
| | | | | | | | | 137,054 | | | | 2.7 | |
| | | | | | | | | 81,949 | | | | 1.6 | |
| | | | | | | | | 20,051 | | | | 0.4 | |
| | | | | | | | | 349,104 | | | | 6.8 | |
| |
| | | | | | Total U.S. Treasury Obligations
(Cost $620,559) | | | 623,184 | | | | 12.2 | |
| |
| | | | | | Total Long-Term Investments
(Cost $5,696,562) | | | 5,761,716 | | | | 112.5 | |
| | | | | | | | | | | |
|---|
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
SHORT-TERM INVESTMENTS 0.3% |
| |
| | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $15,000) | | | 15,000 | | | | 0.3 | |
| |
| | | | | | Total Short-Term Investments
(Cost $15,000) | | | 15,000 | | | | 0.3 | |
| |
| | | | | | Total Investments in Securities
(Cost $5,711,562) | | $ | 5,776,716 | | | | 112.8 | |
| | | | | | Liabilities in Excess of
Other Assets | | | (655,862 | ) | | | (12.8 | ) |
| | | | | | | | $ | 5,120,854 | | | | 100.0 | |
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. |
| ## | | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship and the U.S. Treasury guaranteed the debt issued by those organizations. |
| W | | Settlement is on a when-issued or delayed-delivery basis. |
| ˆ | | Interest only securities represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. Principal amount shown represents the notional amount on which current interest is calculated. Payments of principal on the pool reduce the value of the interest only security. |
| | | Cost for federal income tax purposes is $5,711,672. |
Net unrealized appreciation consists of: | | | | | | |
Gross Unrealized Appreciation | | | | $ | 70,731 | |
Gross Unrealized Depreciation | | | | | (5,687 | ) |
Net Unrealized Appreciation | | | | $ | 65,044 | |
See Accompanying Notes to Financial Statements
44
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Nominating Committee. The Nominating Committee operates pursuant to a Charter approved by the Board. The primary purpose of the Nominating Committee is to consider, evaluate and make recommendations to the Board with respect to the nomination and selection of Independent Trustees. In evaluating candidates, the Nominating Committee may consider a variety of factors, but specific qualifications of candidates for Board membership will be based on the needs of the Board at the time of nomination.
The Nominating Committee is willing to consider nominations received from shareholders and shall assess shareholder nominees in the same manner as it reviews nominees it identifies. A shareholder nominee for director should be submitted in writing to the Fund’s Secretary. Any such shareholder nomination should include sufficient background information concerning the candidate and should be received in a timely manner. At a minimum, the following information as to each individual proposed for nomination as director should be included: the individual’s written consent to be named in the proxy statement as a nominee (if nominated) and to serve as a director (if elected), and all information relating to such individual that is required to be disclosed in a solicitation of proxies for election of directors, or is otherwise required, in each case under applicable federal securities laws, rules and regulations.
The Secretary shall submit all nominations received in a timely manner to the Nominating Committee. To be timely, any such submission must be delivered to the Fund’s Secretary not earlier than the 90th day prior to such meeting and not later than the close of business on the later of the 60th day prior to such meeting or the 10th day following the day on which public announcement of the date of the meeting is first made, by either disclosure in a press release or in a document publicly filed by the Fund with the SEC.
In evaluating a candidate for the position of Independent Trustee, including any candidate recommended by
1
shareholders of the Fund, the Nominating Committee shall consider the following: (i) the candidate’s knowledge in matters relating to the mutual fund industry; (ii) any experience possessed by the candidate as a director or senior officer of other public companies; (iii) the candidate’s educational background, reputation for high ethical standards and professional integrity; (iv) any specific financial, technical or other expertise possessed by the candidate, and the extent to which such expertise would complement the Board’s existing mix of skills, core competencies and qualifications; (v) the candidate’s perceived ability to contribute to the ongoing functions of the Board, including the candidate’s ability and commitment to attend meetings regularly and work collaboratively with other members of the Board; (vi) the candidate’s ability to qualify as an Independent Trustee for purposes of the 1940 Act; and (vii) such other factors as the Committee determines to be relevant in light of the existing composition of the Board and any anticipated vacancies. Prior to making a final recommendation to the Board, the Committee shall conduct personal interviews with those candidates it concludes are the most qualified candidates.
ITEM 10. CONTROLS AND PROCEDURES.
| (a) | Based on our evaluation conducted within 90 days of the filing date, hereof, the design and operation of the registrant’s disclosure controls and procedures are effective to ensure that material information relating to the registrant is made known to the certifying officers by others within the appropriate entities, particularly during the period in which Forms N-CSR are being prepared, and the registrant’s disclosure controls and procedures allow timely preparation and review of the information for the registrant’s Form N-CSR and the officer certifications of such Form N-CSR. |
| (b) | There were no significant changes in the registrant’s internal controls that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 11. EXHIBITS.
| (a)(1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT. |
| (b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| (Registrant): ING Funds Trust |
| |
| By | | /s/ Shaun P. Mathews |
| | Shaun P. Mathews |
| | President and Chief Executive Officer |
|
| Date: June 6, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By | | /s/ Shaun P. Mathews |
| | Shaun P. Mathews |
| | President and Chief Executive Officer |
|
| Date: June 6, 2013 |
| | |
| By | | /s/ Todd Modic |
| | Todd Modic |
| | Senior Vice President and Chief Financial Officer |
|
| Date: June 6, 2013 |
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