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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08895
ING Funds Trust
(Exact name of registrant as specified in charter)
7337 E. Doubletree Ranch Rd., Scottsdale, AZ | 85258 | |
(Address of principal executive offices) | (Zip code) |
The Corporation Trust Company, 1209 Orange Street, Wilmington, DE 19801
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-800-992-0180
Date of fiscal year end: March 31
Date of reporting period: April l, 2010 to September 30, 2010
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Item 1. | Reports to Stockholders. |
The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1):
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Semi-Annual Report
September 30, 2010
Classes A, B, C, I, IS, O, R and W
Fixed-Income Funds
n | ING GNMA Income Fund |
n | ING High Yield Bond Fund |
n | ING Intermediate Bond Fund |
Money Market Funds
n | ING Classic Money Market Fund |
n | ING Institutional Prime Money Market Fund |
E-Delivery Sign-up – details inside |
This report is submitted for general information to shareholders of the ING Funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the funds’ investment objectives, risks, charges, expenses and other information. This information should be read carefully.
MUTUAL FUNDS |
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Go Paperless with E-Delivery! | ||||
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You will be notified by e-mail when these communications become available on the internet. Documents that are not available on the internet will continue to be sent by mail.
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PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how to vote proxies related to portfolio securities is available: (1) without charge, upon request, by calling Shareholder Services toll-free at (800) 992-0180; (2) on the Funds’ website at www.ingfunds.com; and (3) on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. Information regarding how the Funds voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds’ website at www.ingfunds.com and on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO HOLDINGS
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This report contains a summary portfolio of investments for the Funds. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov. The Funds’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q, as well as a complete portfolio of investments, are available without charge upon request from the Fund by calling Shareholder Services toll-free at (800) 992-0180.
Please note that your investment in money market funds: is not a bank deposit, is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve Board or any other government agency, and is affected by market fluctuations. There is no guarantee that the ING Classic Money Market Fund or the ING Institutional Prime Money Market Fund will achieve its investment objective.
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Getting back on course
Dear Shareholder,
While data flow over the past few months continued to highlight cracks in the economic recovery’s foundation, investors found something to build on. Despite a poor showing in August, equity performance in July and September catapulted all broad U.S. market metrics back into positive territory for the quarter and the year to date; however, emerging markets have outperformed for both measurement periods. Fixed income markets, while not as frothy as equities, were also up as investors kept pouring cash into bond funds. Meanwhile, Treasury yields continued to drift lower throughout the quarter as central banks grappled with how to reinforce the wobbly economy.
Though sluggish growth and persistently high unemployment still plague the economy, there are reasons to believe that the expansion should remain on track despite the headwinds. The slow patch encountered over the summer — which resulted from temporary factors like a now-reversed import surge and the expiration of the homebuyer tax credit — appears to have passed, and we expect a sustainable expansion supported by final demand. Critical to this transition is a revival in employment. Although total non-farm payrolls have failed to gain traction as a result of the end of federal census jobs and belt-tightening by state and local governments, private sector employment has grown each month in 2010 (at an admittedly measured pace). While “equilibrium” levels of employment are likely many years away, we believe positive trends should persist.
As the economy slowly gets back on track, are you on course with your investments to reach your long-term goals? If you made changes over the last few years aimed at reducing risk, now may be a good time to reassess your portfolio to determine whether it is still appropriate for your goals. As we’ve noted many times before, it’s important to discuss any proposed changes thoroughly with your financial advisor before taking any action. Thank you for your continued confidence in ING Funds. We look forward to serving your investment needs in the future.
Sincerely,
Shaun Mathews
President and Chief Executive Officer
ING Funds
October 8, 2010
The views expressed in the President’s Letter reflect those of the President as of the date of the letter. Any such views are subject to change at any time based upon market or other conditions and the ING Funds disclaim any responsibility to update such views. These views may not be relied on as investment advice and because investment decisions for an ING Fund are based on numerous factors, may not be relied on as an indication of investment intent on behalf of any ING Fund. Reference to specific company securities should not be construed as recommendations or investment advice.
For more complete information, or to obtain a prospectus for any ING Fund, please call your investment professional or ING Investments Distributor, LLC at (800) 992-0180 or log on to www.ingfunds.com. The prospectus should be read carefully before investing. Consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. The prospectus contains this information and other information about the fund. Check with your investment professional to determine which funds are available for sale within their firm. Not all funds are available for sale at all firms.
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MARKET PERSPECTIVE: SIX MONTHS ENDED SEPTEMBER 30, 2010
As our new fiscal year commenced, it had been just over 12 months since the prices of risky asset classes like equities and corporate bonds reached a bottom. From there, indices of major stock markets and of high yield bonds had gained 50% or more. Even investment grade corporate bonds had returned over 20%. The returns on U.S. Treasuries were either negative or barely positive.
But the rally had become increasingly edgy. The rescue of failing institutions by governments and central banks, together with unprecedented fiscal and monetary stimulus to counter the ensuing recession had led to enormous, unsustainable budget deficits. Stimulus would have to end, and debt would have to be wound down. In this environment, the six months through September 2010 saw markets from stocks to bonds to currencies buffeted by news and events relating to three main themes: the stuttering U.S. economic recovery, a sovereign debt crisis in the Eurozone and growth dynamics in China.
In the U.S., quarterly gross domestic product (“GDP”) growth (annualized) had fallen from 5.6% to 2.7% to 1.7% in the second quarter of 2010. Employment and housing were the focus of attention. The National Bureau of Economic Research announced that the recession had ended in June of 2009 after 18 months, during which some 8.4 million jobs had been lost. Any credible economic rebound depended on their fast recovery. But the data over the period were less than encouraging. By September the private sector was only averaging 78,000 new jobs per month and the rate of unemployment seemed stuck between 9.5% and 10%. Of those unemployed, 42% had been jobless for at least 27 weeks.
The housing market had been improving, boosted by a program of tax credits for home buyers. But after the program expired in April 2010, sales of new and existing home sales collapsed, with a high proportion of distressed sales. House prices (based on the S&P/Case-Shiller 20-City Composite Home Price Index), having shown year-over-year increases from February, were decelerating and the last reported index level in September was still nearly 29% below the peak recorded more than four years ago.
In the Eurozone, default on billions of euro of Greece’s maturing bonds loomed. Amid downgrades, ballooning yields, fears of contagion and doubts about the viability of the euro itself, Eurozone countries dithered until at last in May, finance ministers and the International Monetary Fund agreed on a Financial Stabilization “mechanism” funded with up to €750 billion. The European Central Bank started buying the worst-affected countries’ sovereign debt, much of it held in the vulnerable European banking system. This, plus positive results from some rather soft stress testing on banks seemed to calm nerves, although uncertainty remained.
China’s efforts to restrain inflation and a housing bubble by repeatedly raising banks’ reserve ratio requirements while tightening the rules on mortgage issuance, were working all too well. Second quarter GDP growth slipped to 10.3% and by the end of August the privately compiled Chinese manufacturing purchasing managers index was signaling contraction. But in September this measure, retail sales and industrial production all showed signs of renewed acceleration.
In U.S. fixed income markets the Barclays Capital U.S. Aggregate Bond Index of investment grade bonds returned
6.05%. Last fiscal year, the riskiest fixed income sub-classes had the highest returns. In the six months through September, the Barclays Capital U.S. Treasury Index with a return of 7.54% underperformed the Barclays Capital Corporate Investment Grade Bond Index with a return of 8.29%. But both outperformed the Barclays Capital U.S. Mortgage Backed Securities (“MBS”) Index which had a return of 3.52%, after the end of the Federal Reserve’s MBS purchase program. In addition, refinancing risks rose as mortgage rates repeatedly fell to all-time low levels. The two-year Treasury yield also set new records to the downside due to periodic flights to safety and the hint by Federal Reserve Chairman Bernanke on September 21 of a new program of quantitative easing. At the other end of the risk spectrum, the Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index gained 6.55%, practically all in the last three months.
In currencies, the gloom about the Eurozone was increasingly replaced after early June by renewed pessimism about the dollar over a stalling economy and the perceived threat of debasement through quantitative easing. Despite early strength, the dollar lost 1.2% against the euro, 4.7% against the pound and 9.7% to the yen, which was sold in the market by the Bank of Japan after it reached a 15-year high in September.
U.S. equities, represented by the S&P 500® Index, including dividends, fell 1.42% in the first half of the fiscal year, but this small move conceals a 16% drop in the 10 weeks after April 23 and the index’s best September since 1939, with a return of 8.92%. Prices were supported by strong earnings reports, with operating earnings per share for S&P 500 companies 50% above those for the second quarter of 2009.
In international markets, based on local currencies including dividends, the MSCI Japan® Index sagged 14.92% for the six months through September. Strong 5% annualized first quarter GDP growth shriveled to an export-dependent 1.5% in the second quarter, vulnerable to the irrepressible yen, with household demand still slow and consumer prices in retreat. The MSCI Europe ex UK® Index fell 2.21%. The sovereign debt trauma subsided after it became clear that the European Central Bank stood behind the banking system. In the meantime GDP grew 1.0% in the second quarter over the first quarter. The MSCI UK® Index slipped 0.68%, but excluding British Petroleum would have risen about 2%. Supporting this was the return to profit of most banks and second quarter GDP growth of 1.2%.
Parentheses denote a negative number.
Past performance does not guarantee future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. The Funds’ performance is subject to change since the period’s end and may be lower or higher than the performance data shown. Please call (800) 992-0180 or log on to www.ingfunds.com to obtain performance data current to the most recent month end.
Market Perspective reflects the views of ING’s Chief Investment Risk Officer only through the end of the period, and is subject to change based on market and other conditions.
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BENCHMARK DESCRIPTIONS
Index | Description | |
S&P/Case-Shiller 20-City Composite Home Price Index | A composite index of the home price index for the top 20 Metropolitan Statistical Areas in the United States. The index is published monthly by Standard & Poor’s. | |
Barclays Capital U.S. Aggregate Bond Index | An unmanaged index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities. | |
Barclays Capital U.S. Treasury Index | An unmanaged index that includes public obligations of the U.S. Treasury. Treasury bills, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS and STRIPS, are excluded. | |
Barclays Capital Corporate Investment Grade Bond Index | The corporate component of the Barclays Capital U.S. Credit Index. The U.S. Credit Index includes publicly-issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. The index includes both corporate and non-corporate sectors. The corporate sectors are industrial, utility and finance, which includes both U.S. and non-U.S. corporations. | |
Barclays Capital U.S. MBS Index | An unmanaged index composed of fixed-income security mortgage pools sponsored by GNMA, FNMA and FHLMC, including GNMA Graduated Payment Mortgages. | |
Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index | An unmanaged index that includes all fixed income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million, and at least one year to maturity. | |
S&P 500® Index | An unmanaged index that measures the performance of securities of approximately 500 large-capitalization companies whose securities are traded on major U.S. stock markets. | |
MSCI Japan® Index | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan. | |
MSCI Europe ex UK® Index | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe, excluding the UK. | |
MSCI UK® Index | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK. | |
Barclays Capital Corporate High Yield Index | An unmanaged index that measures the performance of fixed-income securities generally representative of corporate bonds rated below investment grade. |
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ING GNMA INCOME FUND | PORTFOLIO MANAGERS’ REPORT |
Investment Type Allocation
as of September 30, 2010
(as a percent of net assets)
U.S. Government Agency Obligations | 105.2% | |||
U.S. Treasury Obligations | 0.7% | |||
Other Assets and Liabilities — Net | (5.9)% | |||
Net Assets | 100.0% | |||
Portfolio holdings are subject to change daily.
ING GNMA Income Fund (the “Fund”) seeks a high level of current income, consistent with liquidity and safety of principal, through investment primarily in Government National Mortgage Association (“GNMA”) mortgage-backed securities (also known as GNMA Certificates) that are guaranteed as to the timely payment of principal and interest by the U.S. government. The Fund is managed by Peter Guan, Jeff Dutra and Justin McWhorter, Portfolio Managers of ING Investment Management Co. — the Sub-Adviser.
Securities issued by the U.S. Treasury are backed by the full faith and credit of the federal government. Securities issued by individual agencies and organizations may be backed by the full faith and credit of the federal government as to principal or interest but are not direct obligations of the U.S. Treasury. Securities of some agencies and organizations are backed solely by the entity’s own resources or by the ability of
the entity to borrow from the U.S. Treasury. Government securities also include certain mortgage-related securities that are sponsored by a U.S. government agency or organization and are not direct obligations of the U.S. government.
Performance: For the six-month period ended September 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 3.85% compared to the Barclays Capital U.S. Mortgage-Backed Securities Index which returned 3.52%, for the same period.
Portfolio Specifics: Agency mortgage-backed securities (“MBS”) had performed strongly early this year and the Fund benefited from its exposure to these securities. In April and May investors fled equities and other credit sectors in search of government protected assets. U.S. Treasuries increased in price, which lowered their yield by nearly 1% for the ten-year maturity. Likewise, agency MBS increased to all-time high dollar prices as prepayments initially remained subdued and net supply remained negative. By August and September, however, MBS showed signs of stress. Specifically, the persistently low interest rate environment ultimately led to an acceleration of prepayments for good credit borrowers with home equity. Higher prepayments result in faster amortization on mortgage pools which, combined with high dollar prices, lead to lower yields to investors. Many mortgage securities re-priced lower following this event, which was further exaggerated by somewhat weak demand from domestic and overseas investors. On the positive side, GNMA securities including those held by the Fund fared better as their prepayments increased only modestly.
The Fund was well positioned for an environment characterized by tighter spreads and low rates, and took advantage of the excess yield offered by premium securities. Despite historically low interest rates, higher coupon mortgages performed well due to relatively benign prepayments for most of the year. GNMA mortgages generally have outperformed conventional agency MBS since March 2010, after the Federal Reserve concluded its purchase of $1.2 trillion agency mortgages, and investors once again turned to the explicit credit protection of GNMA bonds. Finally, the Fund’s focus on securities with high current income did better than “generic” positions found in the index.
Duration positioning was a significant drag on results for the reporting period. That drag was more than offset, however, by the contribution from the Fund’s asset allocations. Security selection had a net neutral impact. The Fund holds over 500 individual GNMA-guaranteed mortgage pools. Given this level of diversity, the uniform credit quality and the homogenous nature of these investments, no individual security can have a significant impact on the Fund’s performance. However, we do position the Fund for performance by managing the average coupon and type of GNMA mortgages selected for the portfolio.
Current Strategy & Outlook: The housing market continues to struggle with prices expected to fall an additional 10% nationally over the next few quarters. We believe, to date, the government’s efforts to stimulate growth have been only modestly effective and further efforts to drive rates lower will likely have a limited impact as mortgage rates are already at historically low levels. We believe foreclosure problems along with a weak job market are likely to impede on the ability of non-prime borrowers and those without sufficient home equity to take full advantage of low rates. These events imply that only the best borrowers will continue to benefit from low rates and the divergence between good and marginal borrower prepayments will widen further.
With this in mind we continue to manage the Fund seeking to benefit from high current income investments. The predominant focus remains on specified GNMA pools and collateralized mortgage obligations (“CMOs”) that provide more attractive current income while minimizing prepayment risks. We are paying special attention to pools with lower loan balances, those with loans possessing what we believe are more attractive credit characteristics and those that are sufficiently seasoned to reduce their prepayment sensitivity to interest rate movements. In addition, we will continue to seek GNMA CMOs that provide structural prepayment and extension protection.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index. The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily. This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
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PORTFOLIO MANAGERS’ REPORT | ING HIGH YIELD BOND FUND |
Industry Allocation
as of September 30, 2010
(as a percent of net assets)
Consumer Discretionary | 27.0% | |||
Energy | 11.3% | |||
Financials | 11.3% | |||
Telecommunication Services | 8.8% | |||
Health Care | 8.2% | |||
Industrials | 6.9% | |||
Consumer Staples | 6.8% | |||
Materials | 6.6% | |||
Utilities | 4.7% | |||
Information Technology | 4.5% | |||
Other Assets and Liabilities — Net* | 3.9% | |||
Net Assets | 100.0% | |||
* | Includes short-term investments related to ING Institutional Prime Money Market Fund — Class I. |
Portfolio holdings are subject to change daily.
ING High Yield Bond Fund (the “Fund”) seeks to provide investors with a high level of current income and total return. The Fund is managed by Randall Parrish, CFA, and Matthew Toms, Portfolio Managers of ING Investment Management Co. — the Sub-Adviser.
Performance: For the six-month period ended September 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 6.47% compared to the Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index and the Barclays Capital Corporate High Yield Index, which returned 6.55% and 6.60%, respectively, for the same period.
Portfolio Specifics: Financial markets experienced significant volatility in the six-months ended September 30, as the economic outlook moved from recovery, to fears of a double-dip recession, to belief that additional quantitative easing by the Federal Reserve would bail out markets. In between, we saw a European sovereign debt crisis, complete with a European Central Bank/International Monetary Fund-inspired rescue; a sharp equity market selloff in May-June; and a sharp devaluation of the U.S. dollar that failed to quiet calls to label China a currency manipulator. Fear of a European sovereign default and the increased likelihood of a second round of quantitative easing explained the unusual occurrence of strong positive returns for commodities (gold +17.5%) and Treasuries (10-year +12.8%). Despite widening of credit spreads during the period, fixed-income asset classes posted strong returns due to the plunge in Treasury yields.
This environment proved constructive for the high yield market — both for investors and for issuers — even if less so than for investors in higher-quality fixed income. With Treasury yields near all-time lows and investment grade yields in the low single digits, the 7%+ yields available in the high-yield market were sufficient to entice investors to continue to pour money into the asset class while issuers were more than happy to
lock in historically attractive coupons for longer term debt. For the six months, the Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index returned 6.55% despite issuance reaching a record $115 billion. With credit spreads widening during the quarter, higher quality bonds outperformed lower quality, with BB-rated bonds returning 7.70% versus 4.41% for CCC-rated bonds. Because the returns for the quarter were driven by rate movements more than credit spread movement, there was little rhyme or reason to industry sector winners and losers. Financials, wireless telecommunication and autos outperformed. The most notable underperformer for the quarter was electric utilities.
The Fund’s performance suffered due to the Fund’s lower quality credit profile relative to the benchmark. However, the Fund outperformed the Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index on a gross of fees basis. The Fund benefited from strong security selection across a range of industry sectors and individual names in the six-months ended September 30, 2010. Our underweight of the independent power producers in the utilities sector positively impacted performance, as did our overweight of the media sector where we built a sizeable position in television broadcasters in expectation of record political advertising spend for the 2010 mid-term elections.
Other contributors included Ford Motor Credit Co. and Ally Financial, Inc. (formerly GMAC), as both companies continued to move toward investment-grade credit profiles. Security selection in healthcare, led by first-lien bonds of hospital operator HCA, Inc., and in retailing also helped. Our underweight in homebuilding negatively impacted performance as our position in the secured bonds of Hovnanian Enterprises, Inc. underperformed higher quality builders amid very weak new home sales.
Current Strategy & Outlook: We continue to believe the United States will sustain a modest economic recovery, which will allow issuers to further increase profitability and cash flow and reduce debt. The massive refinancing wave we have seen over the past 18 months has allowed issuers to refinance the vast majority of near-term debt maturities. This has resulted in a virtual absence of defaults in 2010, and the likelihood of this low-default scenario continuing through at least 2011 supports a further narrowing of credit spreads. Accordingly, if Treasury rates remain low, we believe we could see a total return in the high single-digit range over the next 12 months. Potential threats to this scenario include further economic weakness, renewed sovereign concerns and increasing anti-business government policy rhetoric.
In keeping with our view, we continue to maintain a slight cyclical bias and a single-B risk profile (underweight BBs and the most highly leveraged CCCs). We remain overweight oil-focused independent energy issues and ad-related media (general ad market recovery and expected record political spend). We remain underweight independent power producers (outlook for weak power prices) and homebuilders and have reduced our exposure to wireless telecommunications due to an increasingly difficult competitive environment. Most of our recent purchases came from the new issue calendar, where we bought a mix of largely single-B profile credits across a range of industries. Much of this was funded from accumulated cash and bond redemptions, though we also pared holdings in a number of issues that we viewed as most at risk to a further economic slowdown. Significant new positions included coal producer Foresight Energy and cable operator Charter Communications. We reduced or eliminated positions in Energy Future Holdings notes, Blockbuster, Inc., Leap Wireless International, Inc. and NewPage Corp.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
Top Ten Holdings*
as of September 30, 2010
(as a percent of net assets)
Ally Financial, Inc., 8.000%, due 03/15/20 | 1.3% | |||
Intelsat Luxembourg S.A., 11.500%, due 02/04/17 | 1.2% | |||
NRG Energy, Inc., 7.375%, due 02/01/16 | 1.0% | |||
Harrah’s Operating Co., Inc., 11.250%, due 06/01/17 | 1.0% | |||
CIT Group, Inc., 7.000%, due 05/01/15 | 0.9% | |||
Ford Motor Credit Co., LLC, 8.125%, due 01/15/20 | 0.9% | |||
Energy Future Holdings Corp., | 0.8% | |||
AMC Entertainment, Inc., 11.000%, due 02/01/16 | 0.8% | |||
HCA, Inc., 7.875%, due 02/15/20 | 0.8% | |||
ServiceMaster Co, 10.750%, due 07/15/15 | 0.8% |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund — Class I. |
Portfolio holdings are subject to change daily.
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ING INTERMEDIATE BOND FUND | PORTFOLIO MANAGERS’ REPORT |
Investment Type Allocation
as of September 30, 2010
(as a percent of net assets)
Corporate Bonds/Notes | 36.3% | |||
U.S. Treasury Obligations | 24.8% | |||
U.S. Government Agency Obligations | 19.4% | |||
Collateralized Mortgage Obligations | 12.2% | |||
Asset-Backed Securities | 7.6% | |||
Other Bonds | 2.6% | |||
Municipal Bonds | 0.3% | |||
Preferred Stock | 0.2% | |||
Other Assets and Liabilities — Net* | (3.4)% | |||
Net Assets | 100.0% | |||
* | Includes short-term investments related to ING Institutional Prime Money Market Fund — Class I and securities lending collateral. |
Portfolio holdings are subject to change daily.
ING Intermediate Bond Fund (the “Fund”) seeks to provide investors with a high level of current income, consistent with the preservation of capital and liquidity. The Fund is managed by Christine Hurtsellers, Matt Toms and Mike Mata, Portfolio Managers of ING Investment Management Co. — the Sub-Adviser.*
Performance: For the six-month period ended September 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 7.08% compared to the Barclays Capital U.S. Aggregate Bond Index, which returned 6.05%, for the same period.
Portfolio Specifics: Bond markets rallied and interest rates fell through September as much of the economic data released suggested economic growth was slowing. Over the last six months, the Fund performed well on both an absolute and relative basis outperforming the Barclays Capital U.S. Aggregate Bond Index. While outperformance was mostly led by our allocations to various spread sectors in the past half year, our duration positioning also contributed to performance given our slight overweight to the longer end of the yield curve. We used futures and swaps to manage the duration of the Fund. The aggregate impact of using derivatives and cash bonds to implement our duration view was slightly positive. Credit default swaps were employed to hedge some credit risk over the period which was a slight drag on performance.
Specifically, our overweight position in commercial mortgage-backed securities (“CMBS”) helped performance. We continued to favor what we believe are well structured, seasoned commercial loans that are high in the capital structure within CMBS, which has continued to outperform. While high-yield and investment-grade corporate bonds all hurt performance the first three months of the year, these
holdings rebounded in the three-months ended September 30, 2010. We added value in our investment-grade corporate holdings, specifically by holding an overweight in the sub-sectors in financial institutions and industrials the last three months. We held a small allocation to high yield with a focus on higher-quality securities or those rated ‘BB’. This segment of high yield performed extremely well.
To help fund these overweight positions, we underweighted agency mortgages as we saw this segment as both full-to-richly priced and vulnerable. This underweight to agency mortgages throughout the period contributed to performance. Lastly, we held modest allocations to well structured asset-backed securities over the period. This diversified mix of high-quality credit card receivables, car loans and stranded assets outperformed during the period.
Current Strategy & Outlook: Given the continued uncertainty in the global economy, there are mixed views on the pace and ability for the overall global recovery. The slow growth rate in the economy, the over-arching fear of the sovereign debt issues, and a weakness in the U.S. stock markets is sill bolstering interest in the safe haven found in government debt. Short-term U.S. Treasury rates have hit an all-time low, and the 10-year yield currently hovers around 2.5%.
Despite some recent positive economic indicators, the continued high unemployment and low inflation creates more reason to believe there will be a second round of quantitative easing, which has been a catalyst for the prolonged range-bound low yields. We believe that yields will stay range-bound and low for the coming quarters. It is our opinion that the Federal Reserve will not increase short-term rates soon and therefore we remain neutral on our interest rate positioning.
We continue to hold an underweight position in agency debt, as spreads remain low because of government support and due to a minimal amount of issuance. In addition, non-government related spread sectors currently show better valuations.
Fundamentally, we still see weakness in the housing market as the supply of houses far outweighs demand. Despite the state of the current housing market, we continue to have a positive view on commercial mortgage-backed securities and non-agency residential mortgage-backed securities as these sectors performed well throughout the third quarter. We believe liquidity and credit risk premiums remain attractive keeping our longer term views positive in this space.
Interest in investment grade credit remains strong as the health of corporate balance sheets has improved and technical valuation has been positive. High-quality investment grade bonds are still seeing strong inflows and we continue to be constructive on the sector in the long term. However, tactically, we are careful to keep our risk assets in check within the sector due to the overarching macroeconomic issues that still exist.
The high-yield sector saw a flow of new issues over the quarter, and we expect the new issue market to remain active through the remainder of the year as issuers take advantage of attractive financing rates to extend debt maturities. The sector remains fundamentally strong, as refinancing activity continues to push out maturities and has resulted in virtually no defaults, and is likely through 2011, which supports a further narrowing of credit spreads. We continue to believe high-yield returns are attractive relative to other asset classes.
* | Effective August 2, 2010, Michael Hyman, Peter Guan and Chris Diaz were replaced with Matt Toms and Mike Mata as portfolio managers to the Fund. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index. The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions. Fund holdings are subject to change daily. This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
Top Ten Holdings*
as of September 30, 2010
(as a percent of net assets)
U.S. Treasury Note, 2.625%, due 08/15/20 | 8.5% | |||
U.S. Treasury Note, 4.375%, due 05/15/40 | 6.8% | |||
Brazil Notas do Tesouro Nacional Series F, | 2.6% | |||
U.S. Treasury Note, 0.750%, due 09/15/13 | 2.5% | |||
Federal National Mortgage Association, | 2.2% | |||
U.S. Treasury Note, 3.375%, due 11/15/19 | 2.0% | |||
U.S. Treasury Note, 2.500%, due 04/30/15 | 2.0% | |||
U.S. Treasury Note, 1.250%, due 08/31/15 | 1.8% | |||
Federal Home Loan Mortgage Corporation, | 1.4% | |||
Citi Credit, 5.375%, due 04/11/11 | 1.0% |
* | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
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PORTFOLIO MANAGERS’ REPORT | ING CLASSIC MONEY MARKET FUND |
Investment Type Allocation
as of September 30, 2010
(as a percent of net assets)
Commercial Paper | 56.0% | |||
Repurchase Agreement | 22.4% | |||
Certificates of Deposit | 16.2% | |||
Corporate Bonds/Notes | 6.2% | |||
Other Assets and Liabilities — Net | (0.8)% | |||
Net Assets | 100.0% | |||
Portfolio holdings are subject to change daily.
ING Classic Money Market Fund (the “Fund”) seeks to provide investors with a high level of current income, consistent with the preservation of capital and liquidity and the maintenance of a stable $1.00 net asset value per share. The Fund is managed by David S. Yealy, Portfolio Manager of ING Investment Management Co. — the Sub-Adviser.
Portfolio Specifics: Statements following each of the four Federal Open Market Committee (“FOMC”) meetings during the six-month period ended September 30, 2010 were very similar in that they highlighted the risks to growth, constrained household spending, high unemployment, modest income growth, lower housing wealth,
tight credit and subdued inflation expectations. Against this backdrop, the Federal Reserve Board (the “Fed”) announced their intention to keep the federal funds rate at 0.00% to 0.25% for an extended period of time. Yields on money market securities remained low by historical standards during this period. Yields did increase slightly in June as a full-blown fiscal crisis in Europe peaked as concerns about Portugal, Italy, Ireland, Greece and Spain spilled over enveloping their more fiscally responsible euro zone neighbors in the process. Three-month London Interbank Offered Rate (“LIBOR”) increased from 0.29% at the end of March to 0.53% at the end of June as liquidity and funding dried up even for the top-tier-rated European banks. Subsequent steps by the European Union and the International Monetary Fund managed to avert a complete meltdown of the euro, and three-month LIBOR returned to relatively normal levels, ending the period at 0.29%.
Economic reports during the last three months of the period primarily painted a picture of a slowing recovery. Market expectations for the Fed to start another round of quantitative easing as early as November increased as the quarter ended. Short-term yields declined during the quarter as the two-year Treasury’s yield went from 0.61% as of the end of June to 0.43% at the end of September. Yields for the various money market securities also declined as well, led by money market securities of high-quality European banks on the improving credit outlook.
Our focus continues to be on the preservation of capital, limiting credit risk and keeping an excess liquidity cushion due to the still-elevated risks in the market and not on maximizing the yield and return of the Fund. The Fund’s Adviser and/or Distributor continue to waive fees in order to maintain a yield of not less than zero, as do most of our competitors, due to historically low levels of rates on money market securities. The Fund followed its strategy of taking on interest rate risk while maintaining limited longer-term credit exposure for most of the period. Moreover, we shortened the weighted average maturity (“WAM”) at the end of the period. We did so as there was less incentive to extend maturities with the collapse of longer-term money market yields on top of short-term money market yields. The Fund ended the period with a 35-day WAM.
Current Strategy & Outlook: Our outlook and strategy are little changed from the previous quarters. It is our opinion that the economy is positioned for a slow recovery in 2010 due to expected high continuing unemployment and the significant slack in the domestic economy. We believe the lack of a sustained and significant housing recovery, constrained consumer spending and low inflation presents significant headwinds to a robust recovery. We expect the FOMC will be forced to keep the federal funds rate in the 0.00% to 0.25% range well into 2011 or beyond and that additional quantitative easing may be warranted.
For the Fund, our current strategy will continue to focus on capital preservation by limiting credit risk and on maintaining above normal excess daily liquidity and short-term liquidity.
Principal Risk Factors: Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds.
The views expressed in this report reflect those of the portfolio managers only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
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ING INSTITUTIONAL PRIME MONEY MARKET FUND | PORTFOLIO MANAGERS’ REPORT |
Investment Type Allocation
as of September 30, 2010
(as a percent of net assets)
Commercial Paper | 50.4% | |||
Repurchase Agreement | 29.9% | |||
Certificates of Deposit | 14.0% | |||
Corporate Bonds/Notes | 6.1% | |||
Other Assets and Liabilities — Net | (0.4)% | |||
Net Assets | 100.0% | |||
Portfolio holdings are subject to change daily.
ING Institutional Prime Money Market Fund (the “Fund”) seeks to provide investors with a high level of current income, consistent with the preservation of capital and liquidity and the maintenance of a stable $1.00 net asset value per share. The Fund is managed by David S. Yealy, Portfolio Manager of ING Investment Management Co. — the Sub-Adviser.
Portfolio Specifics: Statements following each of the four Federal Open Market Committee (“FOMC”) meetings during the six-month period ended September 30, 2010 were very similar in that they highlighted the risks to growth, constrained household spending, high unemployment, modest income growth, lower housing wealth, tight credit and subdued inflation expectations. Against this backdrop, the Federal Reserve Board (the “Fed”) announced their
intention to keep the federal funds rate at 0.00% to 0.25% for an extended period of time. Yields on money market securities remained low by historical standards during this period. Yields did increase slightly in June as a full-blown fiscal crisis in Europe peaked as concerns about Portugal, Italy, Ireland, Greece and Spain spilled over enveloping their more fiscally responsible euro zone neighbors in the process. Three-month London Interbank Offered Rate (“LIBOR”) increased from 0.29% at the end of March to 0.53% at the end of June as liquidity and funding dried up even for the top-tier-rated European banks. Subsequent steps by the European Union and the International Monetary Fund managed to avert a complete meltdown of the euro, and three-month LIBOR returned to relatively normal levels, ending the period at 0.29%.
Economic reports during the last three months of the period primarily painted a picture of a slowing recovery. Market expectations for the Fed to start another round of quantitative easing as early as November increased as the quarter ended. Short-term yields declined during the quarter as the two-year Treasury’s yield went from 0.61% as of the end of June to 0.43% at the end of September. Yields for the various money market securities also declined as well, led by money market securities of high-quality European banks on the improving credit outlook.
Our focus continues to be on the preservation of capital, limiting credit risk and keeping an excess liquidity cushion due to the still elevated risks in the market and not on maximizing the yield and return of the Fund. However, the Fund was still able to outperform its benchmark despite our reduced risk strategy, returning 0.11% for the six-month period compared to the 0.05% return of the iMoneyNet First Tier Institutional average return. This was partly due to the Fund taking advantage of the increased funding rates for European bank issuers by investing primarily in one-month to six-month maturities of those issuers that we believe have minimal credit risk in that sector. The Fund followed its strategy of taking on interest rate risk while maintaining limited longer-term credit exposure for most of the period but did shorten the weighted average maturity (“WAM”) at the end of the period. Moreover, there was less incentive to extend maturities with the collapse of longer-term money market yields on top of short-term money market yields. The Fund ended the period with a 33-day WAM.
Current Strategy & Outlook: Our outlook and strategy are little changed from the previous quarters. It is our opinion that the economy is positioned for a slow recovery in 2010 due to expected high continuing unemployment and the significant slack in the domestic economy. The lack of a sustained and significant housing recovery, constrained consumer spending and low inflation presents significant headwinds to a robust recovery. We expect the FOMC will be forced to keep the federal funds rate in the 0.00% to 0.25% range well into 2011 or beyond and that additional quantitative easing may be warranted.
For the Fund, our current strategy will continue to focus on capital preservation by limiting credit risk and on maintaining above normal excess daily liquidity and short-term liquidity.
Principal Risk Factors: Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds.
The views expressed in this report reflect those of the portfolio managers only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
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SHAREHOLDER EXPENSE EXAMPLES (UNAUDITED)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees, and exchange fees, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. These Examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2010 to September 30, 2010. The Funds’ expenses are shown without the imposition of any sales charges or fees. Expenses would have been higher if such charges were included.
Actual Expenses
The left section of the table shown below, “Actual Fund Return,” provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The right section of the table shown below, “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the hypothetical lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Actual Fund Return | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||
Beginning | Ending | Annualized | Expenses Paid | Beginning | Ending | Annualized | Expenses Paid | |||||||||||||||||||||||||
ING GNMA Income Fund |
| |||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,038.50 | 0.94 | % | $ | 4.80 | $ | 1,000.00 | $ | 1,020.36 | 0.94 | % | $ | 4.76 | ||||||||||||||||
Class B | 1,000.00 | 1,034.80 | 1.69 | 8.62 | 1,000.00 | 1,016.60 | 1.69 | 8.54 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,034.90 | 1.69 | 8.62 | 1,000.00 | 1,016.60 | 1.69 | 8.54 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,040.10 | 0.64 | 3.27 | 1,000.00 | 1,021.86 | 0.64 | 3.24 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,039.80 | 0.69 | 3.53 | 1,000.00 | 1,021.61 | 0.69 | 3.50 | ||||||||||||||||||||||||
ING High Yield Bond Fund |
| |||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,064.70 | 1.10 | % | $ | 5.69 | $ | 1,000.00 | $ | 1,019.55 | 1.10 | % | $ | 5.57 | ||||||||||||||||
Class B | 1,000.00 | 1,060.70 | 1.85 | 9.56 | 1,000.00 | 1,015.79 | 1.85 | 9.35 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,060.60 | 1.85 | 9.56 | 1,000.00 | 1,015.79 | 1.85 | 9.35 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,068.10 | 0.75 | 3.89 | 1,000.00 | 1,021.31 | 0.75 | 3.80 |
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SHAREHOLDER EXPENSE EXAMPLES (UNAUDITED) (CONTINUED)
Actual Fund Return | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||
Beginning | Ending | Annualized | Expenses Paid | Beginning | Ending | Annualized | Expenses Paid | |||||||||||||||||||||||||
ING Intermediate Bond Fund |
| |||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,070.80 | 0.69 | % | $ | 3.58 | $ | 1,000.00 | $ | 1,021.61 | 0.69 | % | $ | 3.50 | ||||||||||||||||
Class B | 1,000.00 | 1,065.90 | 1.44 | 7.46 | 1,000.00 | 1,017.85 | 1.44 | 7.28 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,065.90 | 1.44 | 7.46 | 1,000.00 | 1,017.85 | 1.44 | 7.28 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,072.50 | 0.38 | 1.97 | 1,000.00 | 1,023.16 | 0.38 | 1.93 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,069.60 | 0.69 | 3.58 | 1,000.00 | 1,021.61 | 0.69 | 3.50 | ||||||||||||||||||||||||
Class R | 1,000.00 | 1,069.40 | 0.94 | 4.88 | 1,000.00 | 1,020.36 | 0.94 | 4.76 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,072.10 | 0.44 | 2.29 | 1,000.00 | 1,022.86 | 0.44 | 2.23 | ||||||||||||||||||||||||
ING Classic Money Market Fund |
| |||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,000.20 | 0.31 | %•• | $ | 1.55 | $ | 1,000.00 | $ | 1,023.51 | 0.31 | %•• | $ | 1.57 | ||||||||||||||||
Class B | 1,000.00 | 1,000.20 | 0.31 | •• | 1.55 | 1,000.00 | 1,023.51 | 0.31 | •• | 1.57 | ||||||||||||||||||||||
Class C | 1,000.00 | 1,000.20 | 0.31 | •• | 1.55 | 1,000.00 | 1,023.51 | 0.31 | •• | 1.57 | ||||||||||||||||||||||
ING Institutional Prime Money Market Fund |
| |||||||||||||||||||||||||||||||
Class I | $ | 1,000.00 | $ | 1,001.10 | 0.13 | % | $ | 0.65 | $ | 1,000.00 | $ | 1,024.42 | 0.13 | % | $ | 0.66 | ||||||||||||||||
Class IS | 1,000.00 | 1,001.80 | 0.18 | 0.90 | 1,000.00 | 1,024.17 | 0.18 | 0.91 |
* | Expenses are equal to each Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 183/365 to reflect the most recent fiscal half-year. |
•• | Expense ratios reflect waivers of 0.53%, 1.11% and 1.11% of distribution and shareholder servicing fees for Classes A, B and C, respectively, in order to maintain a yield of not less than zero. |
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STATEMENTS OF ASSETS AND LIABILITIESASOF SEPTEMBER 30, 2010 (UNAUDITED)
ING GNMA Income Fund | ING High Yield Bond Fund | ING Intermediate Bond Fund | ||||||||||
ASSETS: | ||||||||||||
Investments in securities at value+* | $ | 887,964,683 | $ | 114,784,075 | $ | 854,023,301 | ||||||
Short-term investments** | — | — | 19,658,555 | |||||||||
Short-term investments in affiliates*** | — | 3,908,000 | 3,312,000 | |||||||||
Cash | 36,211,893 | 13,430 | 52,566 | |||||||||
Cash collateral for futures | — | — | 1,712,430 | |||||||||
Derivatives collateral (Note 2) | — | — | 4,470,000 | |||||||||
Foreign currencies at value**** | — | — | 771 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | — | 3,913,375 | 25,129,440 | |||||||||
Investment securities sold on a delayed-delivery or when-issued basis | 41,754,431 | — | 4,705,756 | |||||||||
Fund shares sold | 2,665,526 | 219,030 | 887,452 | |||||||||
Dividends and interest | 3,820,722 | 2,371,187 | 7,572,952 | |||||||||
Upfront payments made on swap agreements | — | — | 1,349,943 | |||||||||
Prepaid expenses | 43,318 | 35,911 | 44,229 | |||||||||
Reimbursement due from manager | — | 3,657 | — | |||||||||
Total assets | 972,460,573 | 125,248,665 | 922,919,395 | |||||||||
LIABILITIES: | ||||||||||||
Payable for investment securities purchased | — | 5,203,526 | 25,939,056 | |||||||||
Payable for investment securities purchased on a delayed-delivery or when-issued basis | 132,261,367 | — | 41,065,428 | |||||||||
Payable for fund shares redeemed | 1,179,715 | 264,460 | 886,104 | |||||||||
Payable upon receipt of securities loaned | — | — | 20,324,526 | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | 1,484,285 | |||||||||
Upfront payments received on swap agreements | — | — | 1,024,958 | |||||||||
Unrealized depreciation on swap agreements | — | — | 4,427,107 | |||||||||
Income distribution payable | — | 210,947 | 346,616 | |||||||||
Payable to affiliates | 625,316 | 93,615 | 318,762 | |||||||||
Payable for directors fees | 7,313 | 7,094 | 11,041 | |||||||||
Other accrued expenses and liabilities | 199,774 | 119,972 | 448,717 | |||||||||
Written options, at fair value^ | — | — | 554,133 | |||||||||
Total liabilities | 134,273,485 | 5,899,614 | 96,830,733 | |||||||||
NET ASSETS | $ | 838,187,088 | $ | 119,349,051 | $ | 826,088,662 | ||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||
Paid-in capital | $ | 807,424,433 | $ | 228,385,508 | $ | 959,907,814 | ||||||
Undistributed (distributions in excess of) net investment income | 2,967,215 | (415,959 | ) | 22,930,610 | ||||||||
Accumulated net realized loss | (4,628,479 | ) | (115,659,081 | ) | (194,354,863 | ) | ||||||
Net unrealized appreciation | 32,423,919 | 7,038,583 | 37,605,101 | |||||||||
NET ASSETS | $ | 838,187,088 | $ | 119,349,051 | $ | 826,088,662 | ||||||
| ||||||||||||
+Including securities loaned at value | $ | — | $ | — | $ | 19,898,258 | ||||||
*Cost of investments in securities | $ | 855,540,764 | $ | 107,745,492 | $ | 810,543,791 | ||||||
**Cost of short-term investments | $ | — | $ | — | $ | 20,324,526 | ||||||
***Cost of short-term investments in affiliates | $ | — | $ | 3,908,000 | $ | 3,312,000 | ||||||
****Cost of foreign currencies | $ | — | $ | — | $ | 759 | ||||||
^Premiums received on written options | $ | — | $ | — | $ | 708,689 |
See Accompanying Notes to Financial Statements
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STATEMENTS OF ASSETS AND LIABILITIESASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
ING GNMA Income Fund | ING High Yield Bond Fund | ING Intermediate Bond Fund | ||||||||||
Class A: | ||||||||||||
Net assets | $ | 616,136,468 | $ | 86,297,879 | $ | 364,316,306 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||
Shares outstanding | 69,164,188 | 11,423,036 | 37,770,150 | |||||||||
Net asset value and redemption price per share | $ | 8.91 | $ | 7.55 | $ | 9.65 | ||||||
Maximum offering price per share (2.50%)(1) | $ | 9.14 | $ | 7.74 | $ | 9.90 | ||||||
Class B: | ||||||||||||
Net assets | $ | 18,748,705 | $ | 9,972,827 | $ | 15,773,841 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||
Shares outstanding | 2,116,395 | 1,321,782 | 1,638,880 | |||||||||
Net asset value and redemption price per share(2) | $ | 8.86 | $ | 7.54 | $ | 9.62 | ||||||
Class C: | ||||||||||||
Net assets | $ | 114,316,062 | $ | 11,302,473 | $ | 43,955,998 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||
Shares outstanding | 12,894,543 | 1,496,759 | 4,564,000 | |||||||||
Net asset value and redemption price per share(2) | $ | 8.87 | $ | 7.55 | $ | 9.63 | ||||||
Class I: | ||||||||||||
Net assets | $ | 80,341,758 | $ | 11,775,872 | $ | 340,231,089 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | 0.001 | $ | 0.001 | $ | 0.001 | ||||||
Shares outstanding | 9,007,546 | 1,560,767 | 35,272,668 | |||||||||
Net asset value and redemption price per share | $ | 8.92 | $ | 7.54 | $ | 9.65 | ||||||
Class O: | ||||||||||||
Net assets | n/a | n/a | $ | 43,638,376 | ||||||||
Shares authorized | n/a | n/a | unlimited | |||||||||
Par value | n/a | n/a | $ | 0.001 | ||||||||
Shares outstanding | n/a | n/a | 4,522,527 | |||||||||
Net asset value and redemption price per share | n/a | n/a | $ | 9.65 | ||||||||
Class R: | ||||||||||||
Net assets | n/a | n/a | $ | 15,794,578 | ||||||||
Shares authorized | n/a | n/a | unlimited | |||||||||
Par value | n/a | n/a | $ | 0.001 | ||||||||
Shares outstanding | n/a | n/a | 1,635,390 | |||||||||
Net asset value and redemption price per share | n/a | n/a | $ | 9.66 | ||||||||
Class W: | ||||||||||||
Net assets | $ | 8,644,095 | n/a | $ | 2,378,474 | |||||||
Shares authorized | unlimited | n/a | unlimited | |||||||||
Par value | $ | 0.001 | n/a | $ | 0.001 | |||||||
Shares outstanding | 968,438 | n/a | 246,783 | |||||||||
Net asset value and redemption price per share | $ | 8.93 | n/a | $ | 9.64 |
(1) | Maximum offering price is computed at 100/97.50 of net asset value. On purchases of $100,000 or more, the offering price is reduced. |
(2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
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STATEMENTS OF ASSETS AND LIABILITIESASOF SEPTEMBER 30, 2010 (UNAUDITED)
ING Classic Fund | ING Institutional Prime Money Market Fund | |||||||
ASSETS: | ||||||||
Short-term investments at amortized cost | $ | 222,381,385 | $ | 1,033,055,586 | ||||
Repurchase agreements | 63,558,000 | 437,574,000 | ||||||
Cash | 810 | 119 | ||||||
Receivables: | ||||||||
Fund shares sold | 53,515 | 159,935,190 | ||||||
Dividends and interest | 98,783 | 703,345 | ||||||
Prepaid expenses | 105,168 | 30,482 | ||||||
Total assets | 286,197,661 | 1,631,298,722 | ||||||
LIABILITIES: | ||||||||
Payable for fund shares redeemed | 2,094,799 | 165,713,774 | ||||||
Income distribution payable | — | 260,062 | ||||||
Payable to affiliates | 35,877 | 86,967 | ||||||
Payable for directors fees | 30,219 | 12,779 | ||||||
Other accrued expenses and liabilities | 238,524 | 159,402 | ||||||
Total liabilities | 2,399,419 | 166,232,984 | ||||||
NET ASSETS | $ | 283,798,242 | $ | 1,465,065,738 | ||||
NET ASSETS WERE COMPRISED OF: | ||||||||
Paid-in capital | $ | 283,769,307 | $ | 1,464,957,798 | ||||
Distributions in excess of net investment income | — | (21,215 | ) | |||||
Accumulated net realized gain | 28,935 | 129,155 | ||||||
NET ASSETS | $ | 283,798,242 | $ | 1,465,065,738 | ||||
See Accompanying Notes to Financial Statements
13
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STATEMENTS OF ASSETS AND LIABILITIESASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
ING Classic Money Market Fund | ING Institutional Prime Money Market Fund | |||||||
Class A: | ||||||||
Net assets | $ | 271,183,700 | n/a | |||||
Shares authorized | unlimited | n/a | ||||||
Par value | $ | 0.001 | n/a | |||||
Shares outstanding | 271,156,816 | n/a | ||||||
Net asset value and redemption price per share | $ | 1.00 | n/a | |||||
Maximum offering price per share | $ | 1.00 | n/a | |||||
Class B: | ||||||||
Net assets | $ | 6,476,549 | n/a | |||||
Shares authorized | unlimited | n/a | ||||||
Par value | $ | 0.001 | n/a | |||||
Shares outstanding | 6,475,770 | n/a | ||||||
Net asset value and redemption price per share(1) | $ | 1.00 | n/a | |||||
Class C: | ||||||||
Net assets | $ | 6,137,993 | n/a | |||||
Shares authorized | unlimited | n/a | ||||||
Par value | $ | 0.001 | n/a | |||||
Shares outstanding | 6,137,323 | n/a | ||||||
Net asset value and redemption price per share(1) | $ | 1.00 | n/a | |||||
Class I: | ||||||||
Net assets | n/a | $ | 1,465,064,738 | |||||
Shares authorized | n/a | unlimited | ||||||
Par value | n/a | $ | 0.001 | |||||
Shares outstanding | n/a | 1,464,985,834 | ||||||
Net asset value and redemption price per share | n/a | $ | 1.00 | |||||
Class IS: | ||||||||
Net assets | n/a | $ | 1,000 | |||||
Shares authorized | n/a | unlimited | ||||||
Par value | n/a | $ | 0.001 | |||||
Shares outstanding | n/a | 1,000 | ||||||
Net asset value and redemption price per share | n/a | $ | 1.00 |
(1) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
14
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STATEMENTS OF OPERATIONSFORTHE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)
ING GNMA Income Fund | ING High Yield Bond Fund | ING Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends | $ | — | $ | 4,841 | $ | 100,813 | ||||||
Interest, net of foreign taxes withheld* | 18,866,333 | 4,860,461 | 22,875,149 | |||||||||
Securities lending income, net | — | — | 17,154 | |||||||||
Total investment income | 18,866,333 | 4,865,302 | 22,993,116 | |||||||||
EXPENSES: | ||||||||||||
Investment management fees | 1,888,131 | 278,831 | 671,106 | |||||||||
Distribution and service fees: | ||||||||||||
Class A | 750,963 | 104,387 | 443,287 | |||||||||
Class B | 111,660 | 54,189 | 85,333 | |||||||||
Class C | 533,516 | 54,712 | 221,263 | |||||||||
Class O | — | — | 53,222 | |||||||||
Class R | — | — | 40,730 | |||||||||
Transfer agent fees: | ||||||||||||
Class A | 202,851 | 67,785 | 200,774 | |||||||||
Class B | 7,573 | 8,859 | 9,688 | |||||||||
Class C | 36,010 | 8,889 | 25,072 | |||||||||
Class I | 3,975 | 1,100 | 77,504 | |||||||||
Class O | — | — | 24,104 | |||||||||
Class R | — | — | 9,236 | |||||||||
Class W | 2,646 | — | 1,288 | |||||||||
Administrative service fees | 401,727 | 54,672 | 394,768 | |||||||||
Shareholder reporting expense | 48,730 | 17,077 | 44,655 | |||||||||
Registration fees | 54,574 | 43,803 | 54,670 | |||||||||
Professional fees | 33,666 | 6,786 | 26,320 | |||||||||
Custody and accounting expense | 47,531 | 6,455 | 76,890 | |||||||||
Trustee fees | 13,972 | 869 | 9,887 | |||||||||
Miscellaneous expense | 18,065 | 7,617 | 19,179 | |||||||||
Interest expense | — | 325 | 771 | |||||||||
Total expenses | 4,155,590 | 716,356 | 2,489,747 | |||||||||
Net waived and reimbursed fees | — | (39,772 | ) | (7,385 | ) | |||||||
Net expenses | 4,155,590 | 676,584 | 2,482,362 | |||||||||
Net investment income | 14,710,743 | 4,188,718 | 20,510,754 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments | 7,521,833 | 1,908,819 | 24,986,265 | |||||||||
Foreign currency related transactions | — | — | (747,401 | ) | ||||||||
Futures | — | — | (7,208,157 | ) | ||||||||
Swaps | — | — | (490,576 | ) | ||||||||
Written options | — | — | 399,854 | |||||||||
Net realized gain | 7,521,833 | 1,908,819 | 16,939,985 | |||||||||
Net change in unrealized appreciation or depreciation on: | ||||||||||||
Investments | 6,724,042 | 805,318 | 19,873,083 | |||||||||
Foreign currency related transactions | — | — | (1,391,864 | ) | ||||||||
Futures | — | — | 735,482 | |||||||||
Swaps | — | — | (3,143,708 | ) | ||||||||
Written options | — | — | 154,556 | |||||||||
Net change in unrealized appreciation or depreciation | 6,724,042 | 805,318 | 16,227,549 | |||||||||
Net realized and unrealized gain | 14,245,875 | 2,714,137 | 33,167,534 | |||||||||
Increase in net assets resulting from operations | $ | 28,956,618 | $ | 6,902,855 | $ | 53,678,288 | ||||||
| ||||||||||||
*Foreign taxes withheld | $ | — | $ | — | $ | 398 | ||||||
(1)Dividends from affiliates | $ | — | $ | 4,815 | $ | 19,614 |
See Accompanying Notes to Financial Statements
15
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STATEMENTS OF OPERATIONSFORTHE SIX MONTHS ENDED SEPTEMBER 30, 2010 (UNAUDITED)
ING Classic Money Market Fund | ING Institutional Prime Money Market Fund | |||||||
INVESTMENT INCOME: | ||||||||
Interest | $ | 588,150 | $ | 2,160,497 | ||||
Total investment income | 588,150 | 2,160,497 | ||||||
EXPENSES: | ||||||||
Investment management fees | 465,010 | 503,919 | ||||||
Distribution and service fees: | ||||||||
Class A | 1,342,579 | — | ||||||
Class B | 36,251 | — | ||||||
Class C | 33,685 | — | ||||||
Transfer agent fees: | ||||||||
Class A | 49,318 | — | ||||||
Class B | 966 | — | ||||||
Class C | 903 | — | ||||||
Class I | — | 118,246 | ||||||
Shareholder reporting expense | 103,292 | 30,231 | ||||||
Registration fees | 124,642 | 28,821 | ||||||
Professional fees | 14,954 | 56,811 | ||||||
Custody and accounting expense | 14,560 | 6,803 | ||||||
Trustee fees | 16,368 | 20,694 | ||||||
Rating agency fee | — | 32,400 | ||||||
Miscellaneous expense | 16,362 | 14,417 | ||||||
Total expenses | 2,218,890 | 812,342 | ||||||
Net waived and reimbursed fees | (1,630,740 | ) | — | |||||
Net expenses | 588,150 | 812,342 | ||||||
Net investment income | — | 1,348,155 | ||||||
REALIZED GAIN | ||||||||
Net realized gain | 28,982 | 64,341 | ||||||
Increase in net assets resulting from operations | $ | 28,982 | $ | 1,412,496 | ||||
See Accompanying Notes to Financial Statements
16
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STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
ING GNMA Income Fund | ING High Yield Bond Fund | |||||||||||||||
Six Months Ended September 30, 2010 | Year Ended March 31, 2010 | Six Months Ended September 30, 2010 | Year Ended March 31, 2010 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 14,710,743 | $ | 29,543,007 | $ | 4,188,718 | $ | 8,892,559 | ||||||||
Net realized gain (loss) | 7,521,833 | 5,839,917 | 1,908,819 | (3,193,568 | ) | |||||||||||
Net change in unrealized appreciation or depreciation | 6,724,042 | (287,645 | ) | 805,318 | 30,507,815 | |||||||||||
Increase in net assets resulting from operations | 28,956,618 | 35,095,279 | 6,902,855 | 36,206,806 | ||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (11,723,880 | ) | (25,155,664 | ) | (3,339,717 | ) | (6,986,125 | ) | ||||||||
Class B | (369,152 | ) | (1,099,922 | ) | (392,362 | ) | (1,093,360 | ) | ||||||||
Class C | (1,696,647 | ) | (3,140,989 | ) | (396,648 | ) | (827,545 | ) | ||||||||
Class I | (1,355,332 | ) | (1,916,719 | ) | (170,940 | ) | (28,023 | ) | ||||||||
Class Q(1) | — | (2,079 | ) | — | — | |||||||||||
Class W | (163,405 | ) | (333,523 | ) | — | — | ||||||||||
Return of capital: | ||||||||||||||||
Class A | — | — | — | (229,275 | ) | |||||||||||
Class B | — | — | — | (38,943 | ) | |||||||||||
Class C | — | — | — | (29,726 | ) | |||||||||||
Class I | — | — | — | (1,015 | ) | |||||||||||
Total distributions | (15,308,416 | ) | (31,648,896 | ) | (4,299,667 | ) | (9,234,012 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 158,066,634 | 275,408,526 | 34,151,703 | 29,719,990 | ||||||||||||
Reinvestment of distributions | 12,946,387 | 26,412,537 | 2,840,933 | 5,568,334 | ||||||||||||
171,013,021 | 301,821,063 | 36,992,636 | 35,288,324 | |||||||||||||
Cost of shares redeemed | (126,177,698 | ) | (287,481,142 | ) | (27,999,345 | ) | (33,208,010 | ) | ||||||||
Net increase in net assets resulting from capital share transactions | 44,835,323 | 14,339,921 | 8,993,291 | 2,080,314 | ||||||||||||
Net increase in net assets | 58,483,525 | 17,786,304 | 11,596,479 | 29,053,108 | ||||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 779,703,563 | 761,917,259 | 107,752,572 | 78,699,464 | ||||||||||||
End of period | $ | 838,187,088 | $ | 779,703,563 | $ | 119,349,051 | $ | 107,752,572 | ||||||||
Undistributed (distributions in excess of) net investment income at end of period | $ | 2,967,215 | $ | 3,564,888 | $ | (415,959 | ) | $ | (305,010 | ) | ||||||
(1) | Effective November 20, 2009, Class Q shareholders of ING GNMA Income Fund converted into Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
17
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STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
ING Intermediate Bond Fund | ING Classic Money Market Fund | |||||||||||||||
Six Months Ended September 30, 2010 | Year Ended March 31, 2010 | Six Months Ended September 30, 2010 | Year Ended March 31, 2010 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 20,510,754 | $ | 44,636,689 | $ | — | $ | (2,826 | ) | |||||||
Net realized gain (loss) | 16,939,985 | (32,149,489 | ) | 28,982 | 425,919 | |||||||||||
Net change in unrealized appreciation or depreciation | 16,227,549 | 143,166,080 | — | — | ||||||||||||
Increase in net assets resulting from operations | 53,678,288 | 155,653,280 | 28,982 | 423,093 | ||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (8,491,347 | ) | (27,470,003 | ) | — | — | ||||||||||
Class B | (349,889 | ) | (1,318,758 | ) | — | — | ||||||||||
Class C | (901,318 | ) | (2,996,473 | ) | — | — | ||||||||||
Class I | (7,899,858 | ) | (23,534,860 | ) | — | — | ||||||||||
Class O | (1,018,952 | ) | (2,840,820 | ) | — | — | ||||||||||
Class R | (371,414 | ) | (1,102,439 | ) | — | — | ||||||||||
Class W | (57,349 | ) | (164,336 | ) | — | — | ||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | — | (121,289 | ) | (2,033,287 | ) | ||||||||||
Class B | — | — | (1,154 | ) | (24,447 | ) | ||||||||||
Class C | — | — | (1,041 | ) | (16,258 | ) | ||||||||||
Total distributions | (19,090,127 | ) | (59,427,689 | ) | (123,484 | ) | (2,073,992 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 123,844,050 | 145,033,805 | 75,177,659 | 217,000,287 | ||||||||||||
Reinvestment of distributions | 15,672,950 | 47,744,888 | 123,047 | 2,025,529 | ||||||||||||
139,517,000 | 192,778,693 | 75,300,706 | 219,025,816 | |||||||||||||
Cost of shares redeemed | (139,081,784 | ) | (468,048,167 | ) | (626,184,632 | ) | (733,199,018 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 435,216 | (275,269,474 | ) | (550,883,926 | ) | (514,173,202 | ) | |||||||||
Net increase (decrease) in net assets | 35,023,377 | (179,043,883 | ) | (550,978,428 | ) | (515,824,101 | ) | |||||||||
NET ASSETS: | ||||||||||||||||
Beginning of period | 791,065,285 | 970,109,168 | 834,776,670 | 1,350,600,771 | ||||||||||||
End of period | $ | 826,088,662 | $ | 791,065,285 | $ | 283,798,242 | $ | 834,776,670 | ||||||||
Undistributed net investment income at end of period | $ | 22,930,610 | $ | 21,509,983 | $ | — | $ | — | ||||||||
See Accompanying Notes to Financial Statements
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Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
ING Institutional Prime Money Market Fund | ||||||||
Six Months Ended September 30, 2010 | Year Ended March 31, 2010 | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 1,348,155 | $ | 2,498,446 | ||||
Net realized gain | 64,341 | 236,529 | ||||||
Increase in net assets resulting from operations | 1,412,496 | 2,734,975 | ||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Net investment income: | ||||||||
Class I | (1,348,153 | ) | (2,498,440 | ) | ||||
Class IS | (2 | ) | (4 | ) | ||||
Net realized gains: | ||||||||
Class I | — | (2,009,805 | ) | |||||
Class IS | — | (2 | ) | |||||
Total distributions | (1,348,155 | ) | (4,508,251 | ) | ||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||
Net proceeds from sale of shares | 7,688,418,462 | 14,422,386,767 | ||||||
Reinvestment of distributions | 20,632 | 119,162 | ||||||
7,688,439,094 | 14,422,505,929 | |||||||
Cost of shares redeemed | (7,685,861,953 | ) | (14,164,212,757 | ) | ||||
Net increase in net assets resulting from capital share transactions | 2,577,141 | 258,293,172 | ||||||
Net increase in net assets | 2,641,482 | 256,519,896 | ||||||
NET ASSETS: | ||||||||
Beginning of period | 1,462,424,256 | 1,205,904,360 | ||||||
End of period | $ | 1,465,065,738 | $ | 1,462,424,256 | ||||
Distributions in excess of net investment income at end of period | $ | (21,215 | ) | $ | (21,215 | ) | ||
See Accompanying Notes to Financial Statements
19
Table of Contents
FINANCIAL HIGHLIGHTS (UNAUDITED)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income (loss) from investment operations | Less distributions | Ratios to average net assets | Supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year or period | Net investment income (loss) | Net realized and unrealized gain (loss) on investments | Total from investment operations | From net investment income | From net realized gains | From return of capital | Total distributions | Net asset value, end of year or period | Total Return(1) | Expenses before reductions/additions(2)(3) | Expenses net of fee waivers and/or recoupments, if any(2)(3) | Expenses net of all reductions/additions(2)(3) | Net investment income (loss)(2)(3) | Net assets, end of year or period | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
ING GNMA Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 8.75 | 0.17 | 0.16 | 0.33 | 0.17 | — | — | 0.17 | 8.91 | 3.85 | 0.94 | 0.94 | 0.94 | 3.76 | 616,136 | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.71 | 0.33 | • | 0.07 | 0.40 | 0.36 | — | — | 0.36 | 8.75 | 4.68 | 0.94 | 0.94 | 0.94 | 3.83 | 589,813 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 8.54 | 0.37 | 0.18 | 0.55 | 0.38 | — | — | 0.38 | 8.71 | 6.62 | 0.96 | 0.96 | 0.96 | 4.33 | 606,856 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.35 | 0.37 | 0.20 | 0.57 | 0.38 | — | — | 0.38 | 8.54 | 7.00 | 0.96 | 0.96 | 0.96 | 4.45 | 515,916 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.30 | 0.37 | 0.09 | 0.46 | 0.41 | — | — | 0.41 | 8.35 | 5.72 | 0.95 | 0.94 | 0.94 | 4.49 | 515,469 | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.52 | 0.40 | (0.19 | ) | 0.21 | 0.43 | — | — | 0.43 | 8.30 | 2.50 | 0.99 | 0.98 | 0.98 | 4.70 | 504,734 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 8.70 | 0.13 | • | 0.17 | 0.30 | 0.14 | — | — | 0.14 | 8.86 | 3.48 | 1.69 | 1.69 | 1.69 | 3.02 | 18,749 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.66 | 0.27 | • | 0.06 | 0.33 | 0.29 | — | — | 0.29 | 8.70 | 3.89 | 1.69 | 1.69 | 1.69 | 3.08 | 25,704 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 8.49 | 0.30 | 0.18 | 0.48 | 0.31 | — | — | 0.31 | 8.66 | 5.86 | 1.71 | 1.71 | 1.71 | 3.57 | 38,718 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.30 | 0.31 | 0.19 | 0.50 | 0.31 | — | — | 0.31 | 8.49 | 6.24 | 1.71 | 1.71 | 1.71 | 3.70 | 45,963 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.26 | 0.30 | 0.09 | 0.39 | 0.35 | — | — | 0.35 | 8.30 | 4.84 | 1.70 | 1.69 | 1.69 | 3.73 | 58,568 | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.48 | 0.33 | (0.18 | ) | 0.15 | 0.37 | — | — | 0.37 | 8.26 | 1.75 | 1.74 | 1.73 | 1.73 | 3.95 | 78,823 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 8.71 | 0.13 | 0.17 | 0.30 | 0.14 | — | — | 0.14 | 8.87 | 3.49 | 1.69 | 1.69 | 1.69 | 3.00 | 114,316 | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.67 | 0.27 | • | 0.06 | 0.33 | 0.29 | — | — | 0.29 | 8.71 | 3.92 | 1.69 | 1.69 | 1.69 | 3.09 | 103,103 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 8.50 | 0.30 | 0.18 | 0.48 | 0.31 | — | — | 0.31 | 8.67 | 5.88 | 1.71 | 1.71 | 1.71 | 3.59 | 73,209 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.31 | 0.31 | 0.20 | 0.51 | 0.32 | — | — | 0.32 | 8.50 | 6.23 | 1.71 | 1.71 | 1.71 | 3.70 | 36,218 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.27 | 0.31 | 0.08 | 0.39 | 0.35 | — | — | 0.35 | 8.31 | 4.85 | 1.70 | 1.69 | 1.69 | 3.73 | 37,280 | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.49 | 0.33 | (0.18 | ) | 0.15 | 0.37 | — | — | 0.37 | 8.27 | 1.74 | 1.74 | 1.73 | 1.73 | 3.95 | 34,997 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 8.76 | 0.18 | • | 0.17 | 0.35 | 0.19 | — | — | 0.19 | 8.92 | 4.01 | 0.64 | 0.64 | 0.64 | 4.04 | 80,342 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.72 | 0.36 | • | 0.07 | 0.43 | 0.39 | — | — | 0.39 | 8.76 | 5.00 | 0.64 | 0.64 | 0.64 | 4.15 | 52,880 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 8.55 | 0.39 | 0.18 | 0.57 | 0.40 | — | — | 0.40 | 8.72 | 6.95 | 0.65 | 0.65 | 0.65 | 4.64 | 38,908 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.35 | 0.40 | 0.20 | 0.60 | 0.40 | — | — | 0.40 | 8.55 | 7.42 | 0.67 | 0.67 | 0.67 | 4.74 | 21,002 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.31 | 0.40 | 0.08 | 0.48 | 0.44 | — | — | 0.44 | 8.35 | 5.92 | 0.65 | 0.65 | 0.65 | 4.77 | 14,181 | 99 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.53 | 0.45 | (0.21 | ) | 0.24 | 0.46 | — | — | 0.46 | 8.31 | 2.82 | 0.67 | 0.67 | 0.67 | 4.96 | 18,287 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 8.77 | 0.18 | 0.17 | 0.35 | 0.19 | — | — | 0.19 | 8.93 | 3.98 | 0.69 | 0.69 | 0.69 | 4.01 | 8,644 | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.73 | 0.36 | • | 0.06 | 0.42 | 0.38 | — | — | 0.38 | 8.77 | 4.97 | 0.66 | 0.66 | 0.66 | 4.15 | 8,204 | 114 | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 8.55 | 0.39 | 0.19 | 0.58 | 0.40 | — | — | 0.40 | 8.73 | 7.03 | 0.65 | 0.65 | 0.65 | 4.70 | 4,180 | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
12-17-07(4) - 03-31-08 | 8.39 | 0.11 | 0.15 | 0.26 | 0.10 | — | — | 0.10 | 8.55 | 3.16 | 0.64 | 0.64 | 0.64 | 4.86 | 1 | 32 |
See Accompanying Notes to Financial Statements
20
Table of Contents
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income (loss) from investment operations | Less distributions | Ratios to average net assets | Supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year or period | Net investment income (loss) | Net realized and unrealized gain (loss) on investments | Total from investment operations | From net investment income | From net realized gains | From return of capital | Total distributions | Net asset value, end of year or period | Total Return(1) | Expenses before reductions/ additions(2)(3) | Expenses net of fee waivers and/or recoupments, if any(2)(3) | Expenses net of all reductions/ additions(2)(3) | Net investment income (loss)(2)(3) | Net assets, end of year or period | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
ING High Yield Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 7.38 | 0.29 | 0.18 | 0.47 | 0.30 | — | — | 0.30 | 7.55 | 6.47 | 1.17 | 1.10 | † | 1.10 | † | 7.80 | † | 86,298 | 41 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 5.52 | 0.62 | 1.89 | 2.51 | 0.63 | — | 0.02 | 0.65 | 7.38 | 46.88 | 1.24 | 1.10 | † | 1.10 | † | 9.17 | † | 83,034 | 103 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 7.89 | 0.62 | (2.32 | ) | (1.70 | ) | 0.54 | — | 0.13 | 0.67 | 5.52 | (22.36 | ) | 1.25 | 1.10 | † | 1.10 | † | 9.30 | † | 59,307 | 75 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.99 | 0.67 | (1.10 | ) | (0.43 | ) | 0.67 | — | — | 0.67 | 7.89 | (5.10 | ) | 1.16 | 1.11 | † | 1.11 | † | 7.86 | † | 83,327 | 66 | ||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.71 | 0.61 | 0.27 | 0.88 | 0.60 | — | — | 0.60 | 8.99 | 10.54 | 1.11 | 1.10 | 1.10 | 6.98 | 104,328 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.75 | 0.55 | (0.04 | ) | 0.51 | 0.55 | — | — | 0.55 | 8.71 | 6.01 | 1.31 | 1.18 | 1.18 | 6.27 | 99,178 | 111 | |||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 7.37 | 0.26 | • | 0.18 | 0.44 | 0.27 | — | — | 0.27 | 7.54 | 6.07 | 1.92 | 1.85 | † | 1.85 | † | 7.04 | † | 9,973 | 41 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 5.52 | 0.57 | 1.87 | 2.44 | 0.57 | — | 0.02 | 0.59 | 7.37 | 45.58 | 1.99 | 1.85 | † | 1.85 | † | 8.46 | † | 12,099 | 103 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 7.88 | 0.58 | (2.32 | ) | (1.74 | ) | 0.49 | — | 0.13 | 0.62 | 5.52 | (22.86 | ) | 2.00 | 1.85 | † | 1.85 | † | 8.38 | † | 12,289 | 75 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.98 | 0.61 | (1.11 | ) | (0.50 | ) | 0.60 | — | — | 0.60 | 7.88 | (5.82 | ) | 1.91 | 1.86 | † | 1.86 | † | 7.08 | † | 24,994 | 66 | ||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.70 | 0.53 | 0.29 | 0.82 | 0.54 | — | — | 0.54 | 8.98 | 9.72 | 1.86 | 1.85 | 1.85 | 6.18 | 43,427 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.74 | 0.47 | (0.03 | ) | 0.44 | 0.48 | — | — | 0.48 | 8.70 | 5.22 | 1.98 | 1.94 | 1.94 | 5.50 | 75,940 | 111 | |||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 7.38 | 0.26 | 0.18 | 0.44 | 0.27 | — | — | 0.27 | 7.55 | 6.06 | 1.92 | 1.85 | † | 1.85 | † | 7.04 | † | 11,302 | 41 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 5.52 | 0.57 | 1.89 | 2.46 | 0.58 | — | 0.02 | 0.60 | 7.38 | 45.82 | 1.99 | 1.85 | † | 1.85 | † | 8.40 | † | 11,038 | 103 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 7.89 | 0.58 | (2.33 | ) | (1.75 | ) | 0.49 | — | 0.13 | 0.62 | 5.52 | (22.95 | ) | 2.00 | 1.85 | † | 1.85 | † | 8.57 | † | 7,101 | 75 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 8.99 | 0.61 | (1.11 | ) | (0.50 | ) | 0.60 | — | — | 0.60 | 7.89 | (5.81 | ) | 1.91 | 1.86 | † | 1.86 | † | 7.09 | † | 9,987 | 66 | ||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 8.71 | 0.54 | 0.28 | 0.82 | 0.54 | — | — | 0.54 | 8.99 | 9.70 | 1.86 | 1.85 | 1.85 | 6.21 | 15,487 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 8.75 | 0.48 | (0.03 | ) | 0.45 | 0.49 | — | — | 0.49 | 8.71 | 5.22 | 1.98 | 1.94 | 1.94 | 5.51 | 17,555 | 111 | |||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 7.37 | 0.30 | • | 0.19 | 0.49 | 0.32 | — | — | 0.32 | 7.54 | 6.81 | 0.82 | 0.75 | † | 0.75 | † | 8.22 | † | 11,776 | 41 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 5.51 | 0.64 | • | 1.90 | 2.54 | 0.66 | — | 0.02 | 0.68 | 7.37 | 47.55 | 0.92 | 0.78 | † | 0.78 | † | 8.99 | † | 1,582 | 103 | ||||||||||||||||||||||||||||||||||||||||||||
07-31-08(4) - 03-31-09 | 7.64 | 0.37 | • | (1.92 | ) | (1.55 | ) | 0.49 | — | 0.09 | 0.58 | 5.51 | (20.35 | ) | 0.95 | 0.80 | † | 0.80 | † | 9.61 | † | 2 | 75 | |||||||||||||||||||||||||||||||||||||||||
ING Intermediate Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.23 | 0.24 | 0.41 | 0.65 | 0.23 | — | — | 0.23 | 9.65 | 7.08 | 0.69 | 0.69 | † | 0.69 | † | 5.14 | † | 364,316 | 208 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.31 | 0.45 | • | 1.09 | 1.54 | 0.62 | — | — | 0.62 | 9.23 | 18.95 | 0.71 | 0.69 | † | 0.69 | † | 5.04 | † | 348,871 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.13 | 0.45 | (1.60 | ) | (1.15 | ) | 0.45 | 0.22 | — | 0.67 | 8.31 | (11.65 | ) | 0.72 | 0.70 | † | 0.70 | † | 4.84 | † | 471,185 | 674 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 10.23 | 0.51 | (0.15 | ) | 0.36 | 0.46 | — | — | 0.46 | 10.13 | 3.61 | 0.73 | 0.69 | † | 0.69 | † | 4.98 | † | 799,369 | 435 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 10.13 | 0.50 | 0.10 | 0.60 | 0.50 | — | — | 0.50 | 10.23 | 6.03 | 0.73 | 0.69 | † | 0.69 | † | 4.89 | † | 698,537 | 367 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 10.32 | 0.41 | (0.14 | ) | 0.27 | 0.42 | 0.04 | — | 0.46 | 10.13 | 2.53 | 1.02 | 0.93 | 0.93 | 3.92 | 572,196 | 469 |
See Accompanying Notes to Financial Statements
21
Table of Contents
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income (loss) from investment operations | Less distributions | Ratios to average net assets | Supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year or period | Net investment income (loss) | Net realized and unrealized gain (loss) on investments | Total from investment operations | From net investment income | From net realized gains | From return of capital | Total distributions | Net asset value, end of year or period | Total Return(1) | Expenses before reductions/ additions(2)(3) | Expenses net of fee waivers and/or recoupments, if any(2)(3) | Expenses net of all reductions/ additions(2)(3) | Net investment income (loss)(2)(3) | Net assets, end of year or period | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
ING Intermediate Bond Fund (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.21 | 0.21 | • | 0.39 | 0.60 | 0.19 | — | — | 0.19 | 9.62 | 6.59 | 1.44 | 1.44 | † | 1.44 | † | 4.41 | † | 15,774 | 208 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.30 | 0.38 | • | 1.08 | 1.46 | 0.55 | — | — | 0.55 | 9.21 | 17.96 | 1.46 | 1.44 | † | 1.44 | † | 4.31 | † | 18,605 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.11 | 0.38 | (1.59 | ) | (1.21 | ) | 0.38 | 0.22 | — | 0.60 | 8.30 | (12.26 | ) | 1.47 | 1.45 | † | 1.45 | † | 4.08 | † | 23,721 | 674 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 10.21 | 0.43 | (0.14 | ) | 0.29 | 0.39 | — | — | 0.39 | 10.11 | 2.84 | 1.48 | 1.44 | † | 1.44 | † | 4.26 | † | 41,078 | 435 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 10.11 | 0.42 | 0.10 | 0.52 | 0.42 | — | — | 0.42 | 10.21 | 5.23 | 1.48 | 1.44 | † | 1.44 | † | 4.13 | † | 50,086 | 367 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 10.30 | 0.32 | (0.13 | ) | 0.19 | 0.34 | 0.04 | — | 0.38 | 10.11 | 1.76 | 1.70 | 1.69 | 1.69 | 3.14 | 60,526 | 469 | |||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.22 | 0.21 | • | 0.39 | 0.60 | 0.19 | — | — | 0.19 | 9.63 | 6.59 | 1.44 | 1.44 | † | 1.44 | † | 4.39 | † | 43,956 | 208 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.30 | 0.38 | • | 1.09 | 1.47 | 0.55 | — | — | 0.55 | 9.22 | 18.08 | 1.46 | 1.44 | † | 1.44 | † | 4.31 | † | 45,016 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.12 | 0.38 | (1.60 | ) | (1.22 | ) | 0.38 | 0.22 | — | 0.60 | 8.30 | (12.35 | ) | 1.47 | 1.45 | † | 1.45 | † | 4.08 | † | 53,534 | 674 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 10.22 | 0.43 | (0.14 | ) | 0.29 | 0.39 | — | — | 0.39 | 10.12 | 2.85 | 1.48 | 1.44 | † | 1.44 | † | 4.24 | † | 83,232 | 435 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 10.12 | 0.42 | 0.10 | 0.52 | 0.42 | — | — | 0.42 | 10.22 | 5.24 | 1.48 | 1.44 | † | 1.44 | † | 4.13 | † | 81,556 | 367 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 10.31 | 0.33 | (0.14 | ) | 0.19 | 0.34 | 0.04 | — | 0.38 | 10.12 | 1.77 | 1.70 | 1.69 | 1.69 | 3.15 | 73,281 | 469 | |||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.23 | 0.25 | 0.41 | 0.66 | 0.24 | — | — | 0.24 | 9.65 | 7.25 | 0.38 | 0.38 | † | 0.38 | † | 5.44 | † | 340,231 | 208 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.31 | 0.48 | • | 1.09 | 1.57 | 0.65 | — | — | 0.65 | 9.23 | 19.33 | 0.39 | 0.37 | † | 0.37 | † | 5.37 | † | 316,209 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.14 | 0.48 | (1.61 | ) | (1.13 | ) | 0.48 | 0.22 | — | 0.70 | 8.31 | (11.42 | ) | 0.39 | 0.37 | † | 0.37 | † | 5.17 | † | 362,162 | 674 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 10.23 | 0.54 | (0.13 | ) | 0.41 | 0.50 | — | — | 0.50 | 10.14 | 4.05 | 0.39 | 0.35 | † | 0.38 | † | 5.31 | † | 351,575 | 435 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 10.14 | 0.53 | 0.09 | 0.62 | 0.53 | — | — | 0.53 | 10.23 | 6.26 | 0.40 | 0.36 | † | 0.36 | † | 5.22 | † | 266,596 | 367 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 10.32 | 0.44 | (0.13 | ) | 0.31 | 0.45 | 0.04 | — | 0.49 | 10.14 | 2.94 | 0.61 | 0.60 | 0.60 | 4.40 | 179,582 | 469 | |||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.24 | 0.24 | 0.40 | 0.64 | 0.23 | — | — | 0.23 | 9.65 | 6.96 | 0.69 | 0.69 | † | 0.69 | † | 5.14 | † | 43,638 | 208 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.32 | 0.46 | • | 1.08 | 1.54 | 0.62 | — | — | 0.62 | 9.24 | 18.94 | 0.71 | 0.69 | † | 0.69 | † | 5.09 | † | 41,860 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.14 | 0.45 | (1.60 | ) | (1.15 | ) | 0.45 | 0.22 | — | 0.67 | 8.32 | (11.62 | ) | 0.72 | 0.70 | † | 0.70 | † | 4.84 | † | 39,188 | 674 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 10.24 | 0.51 | (0.15 | ) | 0.36 | 0.46 | — | — | 0.46 | 10.14 | 3.61 | 0.73 | 0.69 | † | 0.69 | † | 4.99 | † | 55,956 | 435 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 10.14 | 0.50 | 0.09 | 0.59 | 0.49 | — | — | 0.49 | 10.24 | 6.02 | 0.73 | 0.69 | † | 0.69 | † | 4.88 | † | 53,096 | 367 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 10.32 | 0.40 | (0.13 | ) | 0.27 | 0.41 | 0.04 | — | 0.45 | 10.14 | 2.58 | 0.95 | 0.94 | 0.94 | 3.91 | 43,171 | 469 | |||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.24 | 0.23 | • | 0.40 | 0.63 | 0.21 | — | — | 0.21 | 9.66 | 6.94 | 0.94 | 0.94 | † | 0.94 | † | 4.90 | † | 15,795 | 208 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.32 | 0.43 | • | 1.09 | 1.52 | 0.60 | — | — | 0.60 | 9.24 | 18.64 | 0.96 | 0.94 | † | 0.94 | † | 4.83 | † | 18,417 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.15 | 0.43 | (1.61 | ) | (1.18 | ) | 0.43 | 0.22 | — | 0.65 | 8.32 | (11.93 | ) | 0.97 | 0.95 | † | 0.95 | † | 4.59 | † | 18,240 | 674 | ||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 10.25 | 0.48 | (0.14 | ) | 0.34 | 0.44 | — | — | 0.44 | 10.15 | 3.36 | 0.98 | 0.94 | † | 0.94 | † | 4.65 | † | 16,773 | 435 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 10.15 | 0.47 | 0.10 | 0.57 | 0.47 | — | — | 0.47 | 10.25 | 5.75 | 0.98 | 0.94 | † | 0.94 | † | 4.63 | † | 5,572 | 367 | |||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 10.34 | 0.38 | (0.14 | ) | 0.24 | 0.39 | 0.04 | — | 0.43 | 10.15 | 2.26 | 1.17 | 1.16 | 1.16 | 3.79 | 799 | 469 |
See Accompanying Notes to Financial Statements
22
Table of Contents
FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income (loss) from investment operations | Less distributions | Ratios to average net assets | Supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year or period | Net investment income (loss) | Net realized and unrealized gain (loss) on investments | Total from investment operations | From net investment income | From net realized gains | From return of capital | Total distributions | Net asset value, end of year or period | Total Return(1) | Expenses before reductions/ additions(2)(3) | Expenses net of fee waivers and/or recoupments, if any(2)(3) | Expenses net of all reductions/ additions(2)(3) | Net investment income (loss)(2)(3) | Net assets, end of year or period | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
ING Intermediate Bond Fund (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 9.22 | 0.25 | • | 0.41 | 0.66 | 0.24 | — | — | 0.24 | 9.64 | 7.21 | 0.44 | 0.44 | † | 0.44 | † | 5.39 | † | 2,378 | 208 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 8.31 | 0.48 | • | 1.08 | 1.56 | 0.65 | — | — | 0.65 | 9.22 | 19.15 | 0.42 | 0.40 | † | 0.40 | † | 5.42 | † | 2,087 | 540 | ||||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 10.12 | 0.45 | (1.53 | ) | (1.08 | ) | 0.51 | 0.22 | — | 0.73 | 8.31 | (11.03 | ) | 0.39 | 0.37 | † | 0.37 | † | 5.09 | † | 2,079 | 674 | ||||||||||||||||||||||||||||||||||||||||||
12-17-07(4) - 03-31-08 | 10.21 | 0.15 | • | (0.05 | ) | 0.10 | 0.19 | — | — | 0.19 | 10.12 | 0.98 | 0.48 | 0.44 | † | 0.44 | † | 5.24 | † | 443 | 435 | |||||||||||||||||||||||||||||||||||||||||||
ING Classic Money Market Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1.00 | — | 0.00 | * | 0.00 | * | — | 0.00 | * | — | 0.00 | * | 1.00 | 0.02 | 1.17 | 0.31 | ••• | 0.31 | — | 271,184 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 1.00 | (0.00 | )* | — | 0.00 | * | — | 0.00 | * | — | 0.00 | * | 1.00 | 0.15 | 1.13 | 0.47 | •• | 0.47 | (0.00 | )* | 819,755 | — | ||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 1.00 | 0.01 | — | 0.01 | 0.01 | — | — | 0.01 | 1.00 | 1.43 | 1.13 | 0.79 | 0.79 | 1.42 | 1,323,512 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 1.00 | 0.04 | — | 0.04 | 0.04 | — | — | 0.04 | 1.00 | 4.39 | 1.11 | 0.77 | 0.77 | 4.22 | 1,498,016 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 1.00 | 0.05 | — | 0.05 | 0.05 | — | — | 0.05 | 1.00 | 4.63 | 1.11 | 0.77 | 0.77 | 4.55 | 921,623 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 1.00 | 0.03 | — | 0.03 | 0.03 | — | — | 0.03 | 1.00 | 3.07 | 1.10 | 0.77 | 0.77 | 3.07 | 656,731 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1.00 | — | 0.00 | * | 0.00 | * | — | 0.00 | * | — | 0.00 | * | 1.00 | 0.02 | 1.42 | 0.31 | ••• | 0.31 | — | 6,477 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 1.00 | 0.00 | * | — | 0.00 | * | — | 0.00 | * | — | 0.00 | * | 1.00 | 0.15 | 1.38 | 0.47 | •• | 0.47 | 0.00 | * | 8,034 | — | ||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 1.00 | 0.01 | — | 0.01 | 0.01 | — | — | 0.01 | 1.00 | 0.92 | 1.38 | 1.29 | 1.29 | 0.94 | 16,160 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 1.00 | 0.04 | — | 0.04 | 0.04 | — | — | 0.04 | 1.00 | 3.77 | 1.36 | 1.36 | 1.36 | 3.74 | 19,793 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 1.00 | 0.04 | — | 0.04 | 0.04 | — | — | 0.04 | 1.00 | 4.00 | 1.36 | 1.36 | 1.36 | 3.95 | 23,333 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 1.00 | 0.02 | — | 0.02 | 0.02 | — | — | 0.02 | 1.00 | 2.46 | 1.34 | 1.34 | 1.34 | 2.43 | 23,995 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1.00 | — | 0.00 | * | 0.00 | * | — | 0.00 | * | — | 0.00 | * | 1.00 | 0.02 | 1.42 | 0.31 | ••• | 0.31 | — | 6,138 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 1.00 | (0.00 | )* | — | 0.00 | * | — | 0.00 | * | — | 0.00 | * | 1.00 | 0.15 | 1.38 | 0.47 | •• | 0.47 | (0.00 | )* | 6,987 | — | ||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 1.00 | 0.01 | — | 0.01 | 0.01 | — | — | 0.01 | 1.00 | 0.92 | 1.38 | 1.29 | 1.29 | 0.95 | 10,929 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 1.00 | 0.04 | — | 0.04 | 0.04 | — | — | 0.04 | 1.00 | 3.76 | 1.36 | 1.36 | 1.36 | 3.59 | 15,511 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 1.00 | 0.04 | — | 0.04 | 0.04 | — | — | 0.04 | 1.00 | 3.99 | 1.36 | 1.36 | 1.36 | 3.96 | 4,345 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-06 | 1.00 | 0.02 | — | 0.02 | 0.02 | — | — | 0.02 | 1.00 | 2.46 | 1.34 | 1.34 | 1.34 | 2.47 | 4,868 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
ING Institutional Prime Money Market Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1.00 | 0.00 | * | 0.00 | * | 0.00 | * | 0.00 | * | — | — | 0.00 | * | 1.00 | 0.11 | 0.13 | 0.13 | 0.13 | 0.21 | 1,465,065 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 1.00 | 0.00 | * | — | 0.00 | * | 0.00 | * | 0.00 | * | — | 0.00 | * | 1.00 | 0.35 | 0.18 | 0.18 | 0.18 | 0.18 | 1,462,423 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 1.00 | 0.02 | — | 0.02 | 0.02 | — | — | 0.02 | 1.00 | 1.89 | 0.20 | 0.20 | 0.20 | 1.74 | 1,205,903 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
03-31-08 | 1.00 | 0.05 | — | 0.05 | 0.05 | 0.00 | * | — | 0.05 | 1.00 | 5.00 | 0.12 | 0.12 | 0.12 | 4.95 | 800,049 | — | |||||||||||||||||||||||||||||||||||||||||||||||
03-31-07 | 1.00 | 0.05 | — | 0.05 | 0.05 | — | — | 0.05 | 1.00 | 5.25 | 0.16 | 0.16 | 0.16 | 5.17 | 724,330 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
07-29-05(4) - 03-31-06 | 1.00 | 0.03 | — | 0.03 | 0.03 | — | — | 0.03 | 1.00 | 2.70 | 0.19 | 0.17 | 0.17 | 4.14 | 179,659 | — |
See Accompanying Notes to Financial Statements
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FINANCIAL HIGHLIGHTS (UNAUDITED)(CONTINUED)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income (loss) from investment operations | Less distributions | Ratios to average net assets | Supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of year or period | Net investment income (loss) | Net realized and unrealized gain (loss) on investments | Total from investment operations | From net investment income | From net realized gains | From return of capital | Total distributions | Net asset value, end of year or period | Total Return(1) | Expenses before reductions/ additions(2)(3) | Expenses net of fee waivers and/or recoupments, if any(2)(3) | Expenses net of all reductions/ additions(2)(3) | Net investment income (loss)(2)(3) | Net assets, end of year or period | Portfolio turnover rate | |||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
ING Institutional Prime Money Market Fund (Continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class IS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1.00 | 0.00 | * | 0.00 | * | 0.00 | * | 0.00 | * | — | — | 0.00 | * | 1.00 | 0.18 | 0.18 | 0.18 | 0.18 | 0.16 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 1.00 | 0.00 | * | — | 0.00 | * | 0.00 | * | 0.00 | * | — | 0.00 | * | 1.00 | 0.56 | 0.21 | 0.21 | 0.21 | 0.15 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-09 | 1.00 | 0.02 | — | 0.02 | 0.02 | — | — | 0.02 | 1.00 | 2.05 | 0.23 | 0.23 | 0.23 | 1.77 | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
12-05-07(4) - 03-31-08 | 1.00 | 0.01 | — | 0.01 | 0.01 | — | — | 0.01 | 1.00 | 1.35 | 0.22 | 0.20 | 0.20 | 4.19 | 1 | — |
(1) | Total return is calculated assuming reinvestment of all dividends, capital gain distributions and return of capital distributions, if any, at net asset value and excluding the deduction of sales charges. Total return for periods less than one year is not annualized. |
(2) | Annualized for periods less than one year. |
(3) | Expense ratios reflect operating expenses of a Fund. Expenses before reductions do not reflect amounts reimbursed by the Investment Adviser and/or Distributor or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by a Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the Investment Adviser and/or Distributor but prior to reductions from brokerage commission recapture arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by a Fund. Net investment income (loss) is net of all such additions or reductions. |
(4) | Commencement of operations. |
† | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.005% impact on the expense ratio and net investment income or loss ratio. |
* | Amount is less than $0.005 or more than ($0.005). |
Ÿ | Calculated using average number of shares outstanding throughout the period. |
•• | Expense ratios reflect waivers of 0.30%, 0.91%, and 0.91% of distribution and shareholder servicing fees for Classes A, B and C, respectively, in order to maintain a yield of not less than zero (NOTE 5). |
••• | Expense ratios reflect waivers of 0.53%, 1.11%, and 1.11% of distribution and shareholder servicing fees for Classes A, B and C, respectively, in order to maintain a yield of not less than zero (NOTE 5). |
See Accompanying Notes to Financial Statements
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED)
NOTE 1 — ORGANIZATION
Organization. ING Funds Trust (“Trust”) is a Delaware statutory trust and is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (“1940 Act” or the “Act”). The Trust was organized on August 6, 1998 and was established under a Trust Instrument dated July 30, 1998. It consists of five separately managed series: ING GNMA Income Fund (“GNMA Income”), ING High Yield Bond Fund (“High Yield Bond”), ING Intermediate Bond Fund (“Intermediate Bond”), ING Classic Money Market Fund (“Classic Money Market”) and ING Institutional Prime Money Market Fund (“Institutional Money Market”) (each, a “Fund” and collectively, the “Funds”).
The investment objective of each Fund is described in each Fund’s prospectus.
Each Fund, except Institutional Money Market, offers at least three of the following classes of shares: Class A, Class B, Class C, Class I, Class O, Class R and Class W. Institutional Money Market offers Class I and Class IS shares. The separate classes of shares differ principally in the applicable sales charges (if any), transfer agent fees, distribution fees and shareholder servicing fees. Generally, shareholders of each class also bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of a Fund and earn income and realized gains/losses from the portfolio pro rata based on the average daily net assets of each class, without distinction between share classes. Expenses that are specific to a fund or a class are charged directly to that fund or class. Other operating expenses shared by several funds are generally allocated among those funds based on average net assets. Differences in per share dividend rates generally result from the differences in separate class expenses, including distribution, and shareholder servicing fees. Class B shares, along with their pro rata reinvested dividend shares, automatically convert to Class A shares eight years after purchase.
Class B shares of the Funds are closed to new investment, provided that (1) Class B shares of the Funds may be purchased through the reinvestment of dividends issued by Class B shares of a Fund; and (2) subject to the terms and conditions of relevant exchange privileges and as permitted under their respective prospectuses, Class B shares of the Funds may be acquired through exchange of Class B shares of other funds in the ING mutual funds complex.
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements, and such policies are in conformity with U.S. generally accepted accounting principles for investment companies.
A. | Security Valuation. Investments in equity securities traded on a national securities exchange are valued at the last reported sale price. Securities reported by the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) will be valued at the NASDAQ official closing prices. Securities traded on an exchange or NASDAQ for which there has been no sale and securities traded in the over-the- counter-market are valued at the mean between the last reported bid and ask prices. All investments quoted in foreign currencies will be valued daily in U.S. dollars on the basis of the foreign currency exchange rates prevailing at that time. Debt securities acquired with more than 60 days to maturity are valued using matrix pricing methods determined by an independent pricing service which takes into consideration such factors as yields, maturities, liquidity, ratings and traded prices in similar or identical securities. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of fair market value obtained from yield data relating to investments or securities with similar characteristics. Investments in open-end mutual funds are valued at the net asset value (“NAV”). Investments in securities of sufficient credit quality maturing in 60 days or less are valued at amortized cost which approximates fair value. |
Securities and assets for which market quotations are not readily available (which may include certain restricted securities which are subject to limitations as to their sale) are valued at their fair values, as defined by the 1940 Act, as determined in good faith by or under the supervision of the Funds’ Board of Trustees (“Board”), in accordance with methods that are specifically authorized by the Board. Securities traded on exchanges, including foreign exchanges, which close earlier than the time that a Fund calculates its NAV may also be valued at their fair values as defined by the 1940 Act and as determined in good faith by or under the supervision of the Funds’ Board, in accordance with methods that are specifically
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
authorized by the Board. If an event occurs after the time at which the market for foreign securities held by a Fund closes but before the time that a Fund’s NAV is calculated, such event may cause the closing price on the foreign exchange to not represent a readily available reliable market value quotation for such securities at the time a Fund determines its NAV. In such a case, a Fund will use the fair value of such securities as determined under a Fund’s valuation procedures. Events after the close of trading on a foreign market that could require a Fund to fair value some or all of its foreign securities include, among others, securities trading in the U.S. and other markets, corporate announcements, natural and other disasters, and political and other events. Among other elements of analysis in the determination of a security’s fair value, the Board has authorized the use of one or more independent research services to assist with such determinations. An independent research service may use statistical analyses and quantitative models to help determine fair value as of the time a Fund calculates its NAV. There can be no assurance that such models accurately reflect the behavior of the applicable markets or the effect of the behavior of such markets on the fair value of securities, or that such markets will continue to behave in a fashion that is consistent with such models. Unlike the closing price of a security on an exchange, fair value determinations employ elements of judgment. Consequently, the fair value assigned to a security may not represent the actual value that a Fund could obtain if it were to sell the security at the time of the close of the NYSE. Pursuant to procedures adopted by the Board, a Fund is not obligated to use the fair valuations suggested by any research service, and valuation recommendations provided by such research services may be overridden if other events have occurred or if other fair valuations are determined in good faith to be more accurate. Unless an event is such that it causes a Fund to determine that the closing prices for one or more securities do not represent readily available reliable fair value quotations at the time a Fund determines its NAV, events that occur between the time of the close of the foreign market on which they are traded and the close of regular trading on the NYSE will not be reflected in a Fund’s NAV.
Classic Money Market and Institutional Money Market use the amortized cost method to value their portfolio securities, which generally approximates fair value. The amortized cost method involves valuing a security at its cost and amortizing any discount or premium over the period until maturity regardless of the impact of fluctuating interest rates or the fair value of the security.
Fair Value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each investment asset or liability of the Funds is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as “Level 1,” inputs other than quoted prices for an asset or liability that are observable are classified as “Level 2” and unobservable inputs, including the sub-adviser’s judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as “Level 3”. The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Short-term securities of sufficient credit quality which are valued at amortized cost, which approximates fair value, are generally considered to be Level 2 securities under applicable accounting rules. A table summarizing the Funds’ investments under these levels of classification is included following the Summary Portfolios of Investments.
For the six months ended September 30, 2010, there have been no significant changes to the fair valuation methodologies.
B. | Security Transactions and Revenue Recognition. Securities transactions are accounted for on the trade date. Realized gains and losses are reported on the basis of identified cost of securities sold. Interest income is recorded on an accrual basis. Dividend income is recorded on the ex-dividend date, or for certain foreign securities, when the information becomes available to the Funds. Premium amortization and discount accretion are determined by the effective yield method. |
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
C. | Foreign Currency Translation. The books and records of the Funds are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis: |
(1) | Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at the end of the day. |
(2) | Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions. |
Although the net assets and the market values are presented at the foreign exchange rates at the end of the day, the Funds do 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 that are subject to foreign withholding tax upon disposition, liabilities are recorded on the Statements of Assets and Liabilities for the estimated tax withholding based on the securities’ current market values. 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 Funds’ 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 U.S. government securities. 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.
D. | Risk Exposures and the use of Derivative Instruments. The Funds’ investment objectives permit them to enter into various types of derivatives contracts, including, but not limited to, forward foreign currency exchange contracts, futures, purchased options, written options, and swaps. In doing so, the Funds will employ strategies in differing combinations to permit them to increase or decrease the level of risk, or change the level or types of exposure to market risk factors. This may allow the Funds to pursue their objectives more quickly, and efficiently than if it were to make direct purchases or sales of securities capable of affecting a similar response to market factors. |
Market Risk Factors. In pursuit of its investment objectives, the Funds may seek to use derivatives to increase or decrease their exposure to the following market risk factors:
Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer durations, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter durations.
Risks of Investing in Derivatives. The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
market. In instances where the Funds are using derivatives to decrease, or hedge, exposures to market risk factors for securities held by a Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.
The use of these strategies involves certain special risks, including a possible imperfect correlation, or even no correlation, between price movements of derivative instruments and price movements of related investments. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in related investments or otherwise, due to the possible inability of the Funds to purchase or sell a portfolio security at a time that otherwise would be favorable or the possible need to sell a portfolio security at a disadvantageous time because the Funds are required to maintain asset coverage or offsetting positions in connection with transactions in derivative instruments. Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivatives and the Funds. Associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the following notes.
Counterparty Credit Risk and Credit Related Contingent Features. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. The Funds derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Funds intends to enter into financial transactions with counterparties that they believe to be creditworthy at the time of the transaction. To reduce this risk, the Funds generally
enter into master netting arrangements, established within the Funds International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain over-the-counter (“OTC”) derivative and forward foreign currency contracts, entered into by the Funds and the counterparty. The Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable Master Agreement.
The Funds may also enter into collateral agreements with certain counterparties to further mitigate OTC derivative and forward foreign currency contracts. Subject to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with a certain counterparty. Collateral pledged to or from the Funds is held in a segregated account by a third-party agent and can be in the form of cash or debt securities issued by the U.S. government or related agencies.
As of September 30, 2010, the maximum amount of loss that Intermediate Bond would incur if the counterparties to its derivative transactions failed to perform would be $537,658, which represents the gross payments to be received by the Fund on open credit default swaps were they to be unwound as of September 30, 2010.
The Funds have credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Funds. Credit related contingent features are established between the Funds and their derivatives counterparties to reduce the risk that the Funds will not fulfill their payment obligations to their counterparties. These triggering features include, but are not limited to, a percentage decrease in the Funds net assets and or a percentage decrease in the Funds NAV, which could cause the Funds to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Funds Master Agreements.
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
As of September 30, 2010, Intermediate Bond had a net liability position of $6,678,198 on open credit default swaps, forward foreign currency contracts and OTC call options on interest rate swaps “swaptions” with credit related contingent features. If a contingent feature would have been triggered as of September 30, 2010, Intermediate Bond could have been required to pay this amount in cash to its counterparties. As of September 30, 2010 Intermediate Bond had posted $4,470,000 to its counterparties in cash collateral for its open derivatives transactions.
E. | Foreign Currency Transactions and Futures Contracts. High Yield Bond and Intermediate Bond may enter into foreign currency exchange transactions to convert to and from different foreign currencies and to and from the U.S. dollar in connection with the planned purchases or sales of securities. The Funds either enter into these transactions on a spot basis at the spot rate prevailing in the foreign currency exchange market or use forward foreign currency contracts to purchase or sell foreign currencies. When the contract is fulfilled or closed, gains or losses are realized. Until then, the gain or loss is included in unrealized appreciation or depreciation. Risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their forward contracts and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar. |
For the six months ended September 30, 2010, Intermediate Bond has entered into forward foreign currency contracts with the obligation to buy and sell specified foreign currencies in the future at a currently negotiated forward rate in order to increase or decrease exposure to foreign exchange rate risk. The Fund uses forward foreign currency contracts primarily to protect its non-U.S. dollar-denominated holdings from adverse currency movements.
During the six months ended September 30, 2010, Intermediate Bond had average contract amounts on forward foreign currency contracts to buy and sell of $4,763,828 and $34,471,139, respectively.
High Yield Bond and Intermediate Bond may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. A
futures contract obligates the seller of the contract to deliver and the purchaser of the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time for a specified price. Upon entering into such a contract, a Fund is required to deposit and maintain as collateral such initial margin as required by the exchange on which the contract is traded. Pursuant to the contract, a Fund agrees to receive from or pay to the broker an amount equal to the daily fluctuations in the value of the contract. Such receipts or payments are known as variation margins and are recorded as unrealized gains or losses by the Fund. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are exposed to the market risk factor of the underlying financial instrument. During the six months ended September 30, 2010, Intermediate Bond has both purchased and sold futures contracts on various bonds and notes to gain exposure to different parts of the yield curve while maintaining overall duration. Additional associated risks of entering into futures contracts include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
During the six months ended September 30, 2010, Intermediate Bond had an average notional value of $134,789,618 and $253,711,208 on futures contracts purchased and sold, respectively.
F. | Distributions to Shareholders. The Funds record distributions to their shareholders on the ex-dividend date. All Funds, with the exception of GNMA Income, declare dividends daily and pay dividends monthly. GNMA Income declares and pays dividends monthly. The characteristics of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies. |
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NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
G. | Federal Income Taxes. It is the policy of the Funds to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of their net investment income and any net realized capital gains to their shareholders. Therefore, a federal income tax or excise tax provision is not required. Management has considered the sustainability of the Funds’ tax positions taken on federal income tax returns for all open tax years in making this determination. No capital gain distributions shall be made until the capital loss carryforwards have been fully utilized or expire. |
H. | Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
I. | Repurchase Agreements. Each Fund may invest in repurchase agreements only with government securities dealers recognized by the Board of Governors of the Federal Reserve System. Under such agreements, the seller of the security agrees to repurchase it at a mutually agreed upon time and price. The resale price is in excess of the purchase price and reflects an agreed upon interest rate for the period of time the agreement is outstanding. The period of the repurchase agreements is generally short, from possibly overnight to one week, (although it may extend over a number of months) while the underlying securities generally have longer maturities. Each Fund will receive as collateral securities acceptable to it whose market value is equal to at least 100% of the carrying amount of the repurchase agreements, plus accrued interest, being invested by a Fund. The underlying collateral is valued daily on a mark to market basis to assure that the value, including accrued interest is at least equal to the repurchase price. There would be potential loss to a Fund in the event a Fund is delayed or prevented from exercising its right to dispose of the collateral, and it may incur disposition costs in liquidating the collateral. |
J. | Securities Lending. Each Fund has the option to temporarily loan up to 33 1/3% of its total assets to brokers, dealers or other financial institutions in exchange for a negotiated lender’s fee. The borrower is required to fully collateralize the loans with cash or U.S. government securities. Generally, in the event of counterparty default, a Fund has the right to use collateral to offset losses incurred. There would be potential loss to a Fund in the event the Fund is delayed or prevented from exercising its right to dispose of the collateral. A Fund bears the risk of loss with respect to the investment of collateral. Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other risks associated with investing in a Fund. |
K. | Illiquid and Restricted Securities. Classic Money Market and Institutional Money Market may not invest more than 5% of their net assets in illiquid securities and all other Funds may not invest more than 15% of their net assets in illiquid securities. Illiquid securities are not readily marketable. Disposing of illiquid investments may involve time- consuming negotiation and legal expenses, and it may be difficult or impossible for the Funds to sell them promptly at an acceptable price. Restricted securities are those sold under Rule 144A of the Securities Act of 1933 (“1933 Act”) or are securities offered pursuant to Section 4(2) of the 1933 Act, and are subject to legal or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Certain restricted securities may be considered liquid pursuant to procedures adopted by the Board or may be deemed illiquid because they may not be readily marketable. With the exception of Classic Money Market and Institutional Money Market, illiquid and restricted securities are valued using market quotations when readily available. In the absence of market quotations, the securities are valued based upon their fair value determined under procedures approved by the Board. |
L. | Delayed-Delivery or When-Issued Transactions. The Funds may purchase or sell securities on a when-issued or a delayed-delivery basis. Each Fund (except GNMA Income) may enter into forward commitments. The price of the underlying securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The market value of such is identified in the Funds’ Summary Portfolio of |
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
investments. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Funds are required to segregate liquid assets with the Funds’ custodian sufficient to cover the purchase price. |
M. | Mortgage Dollar Roll Transactions. Each Fund may engage in dollar roll transactions with respect to mortgage-backed securities issued or to be issued by Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corp. In a dollar roll transaction, a Fund sells a mortgage-backed security to a financial institution, such as a bank or broker/dealer, and simultaneously agrees to repurchase a substantially similar (i.e., same type, coupon, and maturity) security from the institution on a delayed delivery basis at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different prepayment histories. The Funds account for dollar roll transactions as purchases and sales. |
N. | Options Contracts. The Funds (except GNMA Income, Classic Money Market and Institutional Money Market) may write call and put options on futures, swaptions, securities, commodity or currencies it owns or in which it may invest. Writing put options tends to increase the Funds exposure to the underlying instrument. Writing call options tends to decrease the Funds exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding on the Statements of Assets and Liabilities. Certain options may be written with premiums to be determined on a future date. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain or loss. Each Fund as a |
writer of an option has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Funds may not be able to enter into a closing transaction because of an illiquid market. |
The Funds may also purchase put and call options. Purchasing call options tends to increase the Funds exposure to the underlying instrument. Purchasing put options tends to decrease the Funds’ exposure to the underlying instrument. The Funds pay a premium which is included on the Statements of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss.
During the six months ended September 30, 2010, Intermediate Bond has purchased and written foreign currency options in order to hedge the value of its non-U.S. dollar-denominated holdings from adverse currency movements. There were no open foreign currency options at period end.
During the six months ended September 30, 2010, Intermediate Bond has purchased and written swaptions on credit default swap indices “CDX” in order to hedge the credit risk of the Portfolio. There were no open CDX swaptions at period end.
During the six months ended September 30, 2010, Intermediate Bond has written swaptions on interest rate swaps to increase exposure to long-term interest rates and potentially enhance the Fund’s yield. Please refer to the table following the Fund’s Summary Portfolio of Investments for open interest rate swaptions at period end.
Please refer to Note 9 for the volume of both purchased and written options and swaptions activity during the six months ended September 30, 2010.
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
O. | Swap Agreements. High Yield Bond and Intermediate Bond may enter into swap agreements. A swap is an agreement between two parties pursuant to which each party agrees to make one or more payments to the other at specified future intervals based on the return of an asset (such as a stock, bond or currency) or non-asset reference (such as an interest rate or index). The swap agreement will specify the “notional” amount of the asset or non-asset reference to which the contract relates. Subsequent changes in market value, if any, are calculated based upon changes in the performance of the asset or non-asset reference multiplied by the notional value of the contract. A Fund may enter into credit default, interest rate, total return and currency swaps to manage its exposure to credit, currency and interest rate risk. All outstanding swap agreements are reported following each Fund’s Summary Portfolio of Investments. |
Swaps are marked to market daily using quotations primarily from third party pricing services, counterparties or brokers. The fair value of the swap contract is recorded on each Fund’s Statements of Assets or Liabilities. During the term of the swap, changes in the fair value of the swap, if any, are recorded as unrealized gains or losses on the Statements of Operations. Upfront payments paid or received by a Fund when entering into the agreements are reported on the Statements of Assets and Liabilities and as a component of the changes in unrealized gains or losses on the Statements of Operations. These upfront payments represent the amounts paid or received when initially entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and the prevailing market conditions. The upfront payments are included as a component in the realized gains or losses on each Fund’s Statement of Operations upon termination or maturity of the swap. A Fund also records net periodic payments paid or received on the swap contract as a realized gain or loss on the Statements of Operations.
Entering into swap agreements involves the risk that the maximum potential loss of an investment exceeds the current value of the investment as reported on each Fund’s Statements of Assets and
Liabilities. Other risks involve the possibility that the counterparty to the agreements may default on its obligation to perform, that there will be no liquid market for these investments and that unfavorable changes in the market will have a negative impact on the value of the index or securities underlying the respective swap agreement.
Credit Default Swap Contracts. A credit default swap is a bilateral agreement between counterparties in which the buyer of the protection agrees to make a stream of periodic payments to the seller of protection in exchange for the right to receive a specified return in the event of a default or other credit event for a referenced entity, obligation or index. As a seller of protection on credit default swaps, a Fund will generally receive from the buyer a fixed payment stream based on the notional amount of the swap contract. This fixed payment stream will continue until the swap contract expires or a defined credit event occurs.
A Fund is subject to credit risk in the normal course of pursuing its investment objectives. As a seller of protection in a credit default swap, a Fund may execute these contracts to manage its exposure to the market or certain sectors of the market. A Fund may also enter into credit default swaps to speculate on changes in an issuer’s credit quality, to take advantage of perceived spread advantages, or to offset an existing short equivalent (i.e. buying protection on an equivalent reference entity).
High Yield Bond and Intermediate Bond may sell credit default swaps which expose these Funds to the risk of loss from credit risk- related events specified in the contract. Although contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. If a Fund is a seller of protection, and a credit event occurs, as defined under the terms of that particular swap agreement, a 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. If a Fund is a buyer of protection and a credit event occurs,
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
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 Summary 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 fair 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.
The maximum amount of future payments (undiscounted) that a Fund as seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of September 30, 2010, for which a
Fund is seller of protection, are disclosed in each Fund’s Summary Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreements, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.
For the six months ended September 30, 2010, Intermediate Bond has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual securities and CDX indices and to hedge against anticipated potential credit events.
For the six months ended September 30, 2010, Intermediate Bond has sold credit protection through credit default swaps to gain exposure to the credit risk of individual securities that are either unavailable or considered to be less attractive in the bond market and to hedge against anticipated potential credit events.
For the six months ended September 30, 2010, Intermediate Bond had average notional amounts of $22,693,333 and $6,621,667 on credit default swaps to buy protection and credit default swaps to sell protection, respectively.
Interest Rate Swap Contracts. An interest rate swap involves the agreement between counterparties to exchange periodic payments based on interest rates. One payment will be based on a floating rate of a specified interest rate while the other will be a fixed rate. Interest rate swaps are used to adjust interest rate and yield curve exposures and to substitute for physical securities. Risks involve the future fluctuations of interest rates in which a Portfolio may make payments that are greater than what a Portfolio received from the counterparty. Other risks include credit, liquidity and market risk. For the six months ended September 30, 2010, Intermediate Bond has entered into interest rate swaps in which the Fund pays a fixed interest rate and receives a floating interest rate (short interest rate swap) in order to decrease exposure to long-term interest rates. Average notional amounts on short interest rate swaps was $13,296,000 for the six months ended September 30, 2010.
P. | Construction Loan Securities. GNMA Income may purchase construction loan securities, which are issued to finance building costs. The funds are |
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
disbursed as needed or in accordance with a prearranged plan. The securities provide for the timely payment to the registered holder of interest at the specified rate plus scheduled installments of principal. Upon completion of the construction phase, the construction loan securities are terminated and project loan securities are issued. It is GNMA Income’s policy to record these GNMA certificates on trade date, and to segregate assets to cover its commitments on trade date as well. |
Q. | 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 Funds and, therefore, cannot be estimated; however, based on experience, management considers risk of loss from such claims remote. |
NOTE 3 — INVESTMENT TRANSACTIONS
For the six months ended September 30, 2010, the cost of purchases and proceeds from the sales of securities excluding short-term and U.S. government securities, were as follows:
Purchases | Sales | |||||||
High Yield Bond | $ | 49,979,783 | $ | 42,664,388 | ||||
Intermediate Bond | 293,887,978 | 337,909,876 |
U.S. government securities not included above were as follows:
Purchases | Sales | |||||||
GNMA Income | $ | 805,782,693 | $ | 739,269,859 | ||||
Intermediate Bond | 1,420,461,930 | 1,372,562,084 |
NOTE 4 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
ING Investments, LLC (“ING Investments” or the ”Investment Adviser”), an Arizona limited liability company, serves as the investment adviser to the Funds. The Investment Adviser serves pursuant to an investment management agreement (“Management Agreement”) between the Investment Adviser and the Trust, on behalf of the Funds.
The Management Agreement compensates the Investment Adviser with a fee, computed daily and payable monthly, based on the average daily net assets of each Fund, at the following annual rates:
For GNMA Income — 0.47% on first $1 billion, 0.40% on next $4 billion and 0.35% on assets thereafter; for
High Yield Bond — 0.51% on first $500 million, 0.45% on next $4.5 billion and 0.40% on assets thereafter; for Intermediate Bond — 0.17%; for Classic Money Market — 0.25%; and for Institutional Money Market — 0.08%.
ING Investment Management Co. (“ING IM”), a Connecticut corporation, serves as the sub-adviser to the Funds. The Investment Adviser has entered into a sub-advisory agreement with ING IM. Subject to such policies as the Board or the Investment Adviser may determine, ING IM manages the Funds’ assets in accordance with the Funds’ investment objectives, policies, and limitations.
ING Funds are permitted to invest end-of-day cash balances into Institutional Money Market. Investment management fees paid by the Funds will be reduced by an amount equal to the management fees paid indirectly to Institutional Money Market with respect to assets invested by the Funds. For the six months ended September 30, 2010, High Yield Bond and Intermediate Bond waived $1,666 and $7,385, respectively. These fees are not subject to recoupment.
ING Funds Services, LLC (“IFS”), acts as administrator and provides certain administrative and shareholder services necessary for Fund operations and is responsible for the supervision of other service providers. For its services, IFS is entitled to receive from each Fund, with the exception of Classic Money Market and Institutional Money Market, a fee at an annual rate of 0.10% of its average daily net assets.
ING Investments Distributor, LLC (the “Distributor” or “IID”) is the principal underwriter of the Funds. The Distributor, IFS, ING Investments and ING IM are indirect, wholly-owned subsidiaries of ING Groep N.V. (“ING Groep”). ING Groep is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services.
ING Groep has adopted a formal restructuring plan that was approved by the European Commission in November 2009 under which the ING life insurance businesses, including the retirement services and investment management businesses, which include the Investment Adviser and its affiliates, would be divested by ING Groep by the end of 2013. While there can be no assurance that it will be carried out, the restructuring plan presents certain risks, including uncertainty about the effect on the businesses of the ING entities that service the Fund and potential termination of the Fund’s existing advisory agreement, which may trigger the need for shareholder approval of new agreements.
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 5 — DISTRIBUTION AND SERVICE FEES
Each share class of the Funds (except Class I and Class W and as otherwise noted below) has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act and/or a Service Plan (the “Plans”), whereby the Distributor is reimbursed or compensated (depending on the class of shares) by certain of the Funds for expenses incurred in the distribution of each Fund’s shares (“Distribution Fees”). Pursuant to the Plans, the Distributor is entitled to payment each month for expenses incurred in the distribution and promotion of certain of each 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 have executed a distribution agreement with the Distributor. Under the Plans, each class of shares of the Fund pays the Distributor a Distribution and/or Service Fee based on average daily net assets at the following annual rates:
Class A | Class B | Class C | Class IS | Class O | Class R | |||||||||||||||||||
GNMA Income | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
High Yield Bond | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
Intermediate Bond | 0.25 | % | 1.00 | % | 1.00 | % | N/A | 0.25 | % | 0.50 | % | |||||||||||||
Classic Money Market | 0.75 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
Institutional Money Market | N/A | N/A | N/A | 0.10 | % | N/A | N/A |
The Distributor has contractually agreed to waive a portion of the distribution fee for Class A of Classic Money Market to the extent necessary for expenses not to exceed 0.77%. The fee waiver will continue through at least August 1, 2011. There is no guarantee that this waiver will continue after that date. For the six months ended September 30, 2010, The Distributor waived $722,344 of Class A distribution fees.
ING Investments and IID have contractually agreed to waive a portion of their management fees, distribution and/or shareholder servicing fees, as applicable, and to reimburse certain expenses to the extent necessary to assist Classic Money Market in maintaining a net yield of not less than zero. This arrangement will continue through at least August 1, 2011. There is no guarantee that this waiver will continue after that date. Fees waived or expenses reimbursed are subject to possible recoupment by ING Investments or IID, as applicable, within three years subject to certain restrictions. For the six months September 30, 2010, ING Investments and IID waived $1,028,396 of class specific management, distribution and shareholder servicing fees to maintain
a yield of not less than zero. The class specific waivers were comprised of the following amounts per class:
Management Fee | Distribution Fee | Shareholder Servicing Fee | ||||||||||
Class A | $ | 214,964 | $ | 292,674 | $ | 443,449 | ||||||
Class B | 4,051 | 27,166 | 8,886 | |||||||||
Class C | 3,721 | 25,227 | 8,258 |
Please note that these waivers or reimbursements are in addition to existing contractual limitations, if any. As of September 30, 2010, amounts of waived management, distribution and shareholder servicing fees that are subject to possible recoupment by ING Investments and IID, and the related expiration dates are as follows:
September 30, | ||||||||||||||||
2011 | 2012 | 2013 | Total | |||||||||||||
Class A | $ | — | $ | 68 | $ | 943,706 | $ | 943,774 | ||||||||
Class B | — | 16,205 | 130,646 | 146,851 | ||||||||||||
Class C | — | 11,366 | 100,316 | 111,682 |
The Distributor also receives 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 upon certain redemptions for Class A, Class B, and Class C shares. For the six months ended September 30, 2010, the Distributor retained the following amounts in sales charges:
Class A Shares | Class C Shares | |||||||
Initial Sales Charges: | ||||||||
GNMA | $ | 36,771 | NA | |||||
High Yield | 8,263 | NA | ||||||
Intermediate Bond | 8,639 | NA | ||||||
Contingent Deferred Sales Charges: | ||||||||
GNMA | $ | 3,015 | $ | 10,893 | ||||
High Yield | — | 412 | ||||||
Intermediate Bond | 11 | 3,815 | ||||||
Classic Money Market | — | 1,215 |
NOTE 6 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At September 30, 2010, the Funds had the following amounts recorded as payable to affiliates on the accompanying Statements of Assets and Liabilities (see Notes 4 and 5):
Fund | Accrued | Accrued | Accrued | Total | ||||||||||||
GNMA Income | $ | 322,326 | $ | 68,579 | $ | 234,411 | $ | 625,316 | ||||||||
High Yield Bond | 48,971 | 9,690 | 34,954 | 93,615 | ||||||||||||
Intermediate Bond | 112,810 | 67,039 | 138,913 | 318,762 | ||||||||||||
Classic Money Market | 35,877 | — | — | 35,877 | ||||||||||||
Institutional Money Market | 86,967 | — | — | 86,967 |
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 6 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (continued)
At September 30, 2010, the following ING Portfolios or indirect, wholly-owned subsidiaries of ING Groep owned more than 5% of the following Funds:
ING Life Insurance & Annuity — GNMA Income (21.08%) and Intermediate Bond (19.97%).
ING National Trust — GNMA Income (11.37%) and Intermediate Bond (15.44%).
ING Stock Index Portfolio — Institutional Money Market (8.81%).
ING Strategic Allocation Conservative Portfolio (7.81%).
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. Therefore, because the Funds have a common owner that owns over 25% of the outstanding securities of the Funds, they may be deemed to be affiliates of each other. Investment activities of these shareholders could have a material impact on the Funds.
The Funds have adopted a Retirement Policy (“Policy”) covering independent trustees of the Fund who were trustees on or before May 9, 2007, and who will have served as an independent trustee for at least five years as of the date of their retirement (as that term is defined in the Policy). Benefits under the Policy are based on an annual rate as defined in the Policy.
The Funds have 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 7 — EXPENSE LIMITATIONS
Pursuant to a written expense limitation agreement (“Expense Limitation Agreement”) with the Funds, the Investment Adviser has agreed to limit expenses of each Fund, 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 net assets) | ||||||||||||||||||||||||||||
Class A | Class B | Class C | Class I | Class O | Class R | Class W | ||||||||||||||||||||||
GNMA Income | 0.97 | % | 1.72 | % | 1.72 | % | 0.67 | % | N/A | N/A | 0.72 | % | ||||||||||||||||
High Yield Bond | 1.10 | % | 1.85 | % | 1.85 | % | 0.85 | % | N/A | N/A | N/A |
Maximum Operating Expense Limit (as a percentage of average net assets) | ||||||||||||||||||||||||||||
Class A | Class B | Class C | Class I | Class O | Class R | Class W | ||||||||||||||||||||||
Intermediate Bond(1) | 0.75 | % | 1.50 | % | 1.50 | % | 0.50 | % | 0.75 | % | 1.00 | % | 0.50 | % | ||||||||||||||
Classic Money Market | 0.77 | % | 1.41 | % | 1.41 | % | N/A | N/A | N/A | N/A |
(1) | Prior to August 1, 2009, the expense limits were 0.69%, 1.44%, 1.44%, 0.38%, 0.69%, 0.94% and 0.44% for Classes A, B, C, I, O, R and W shares, respectively. |
The Investment Adviser has agreed to limit expenses, excluding interest, taxes, brokerage commissions, and extraordinary expenses to 0.17% and 0.20% of Institutional Money Market’s Class I and Class IS shares’ average daily net assets, respectively.
The Investment Adviser may at a later date recoup from a Fund for management fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, a Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statements of Operations for each Fund. Amounts payable by the Investment Adviser are reflected on the accompanying Statements of Assets and Liabilities for each Fund.
As of September 30, 2010, the amounts of waived and reimbursed fees that are subject to possible recoupment by the Investment Adviser, and the related expiration dates are as follows:
September 30, | ||||||||||||||||
2011 | 2012 | 2013 | Total | |||||||||||||
High Yield Bond | $ | 137,109 | $ | 154,898 | $ | 90,525 | $ | 382,532 | ||||||||
Intermediate Bond | 384,288 | 201,054 | — | 585,342 |
The Expense Limitation Agreement is contractual and shall renew automatically for one-year terms unless ING Investments or the Trust provides written notice of the termination of the Expense Limitation Agreement within 90 days of the end of the then current term or upon termination of the Management Agreement.
NOTE 8 — LINE OF CREDIT
Each of the Funds included in this report with the exception of GNMA Income, in addition to certain other funds managed by the Investment Adviser, have entered into an unsecured committed revolving line of credit agreement (the “Credit Agreement”) with The Bank of New York Mellon (“BNY”) for an aggregate amount of $125,000,000. The proceeds may be used only to: (1) temporarily finance the purchase and sale of securities; or (2) finance the redemption of shares of
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 8 — LINE OF CREDIT (continued)
an investor in the funds. The funds to which the line of credit is available pay a commitment fee equal to 0.15% 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.
The following Funds utilized the line of credit during the six months ended September 30, 2010:
Fund | Days Utilized | Approximate Average Daily Balance | Approximate Weighted Average Interest Rate | |||||||||
High Yield Bond | 6 | $ | 1,363,333 | 1.45 | % | |||||||
Intermediate Bond | 11 | 1,789,545 | 1.43 |
NOTE 9 — PURCHASED AND WRITTEN OPTIONS
Transactions in purchased and written options and swaptions for ING Intermediate Bond Fund for the six months ended September 30, 2010 were as follows:
Transactions in Purchased Currency Options
USD | Cost | |||||||
Balance at 03/31/10 | $ | — | $ | — | ||||
Options Purchased | 15,562,000 | 95,395 | ||||||
Options Terminated in Closing Sell Transactions | — | — | ||||||
Options Expired | (15,562,000 | ) | (95,395 | ) | ||||
Options Exercised | — | — | ||||||
Balance at 09/30/10 | $ | — | $ | — | ||||
Transactions in Purchased Swaptions on CDX indices
USD | Cost | |||||||
Balance at 03/31/10 | $ | — | $ | — | ||||
Options Purchased | 77,976,000 | 553,630 | ||||||
Options Terminated in Closing Sell Transactions | — | — |
USD | Cost | |||||||
Options Expired | $ | (77,976,000 | ) | $ | (553,630 | ) | ||
Options Exercised | — | — | ||||||
Balance at 09/30/10 | $ | — | $ | — | ||||
Transactions in Written Currency Options
USD | Premium | |||||||
Balance at 03/31/10 | $ | — | $ | — | ||||
Options Written | 15,562,000 | 76,254 | ||||||
Options Terminated in Closing Purchase Transactions | — | — | ||||||
Options Expired | (15,562,000 | ) | (76,254 | ) | ||||
Options Exercised | — | — | ||||||
Balance at 09/30/10 | $ | — | $ | — | ||||
Transactions in Written Swaptions on CDX indices
USD | Premium | |||||||
Balance at 03/31/10 | $ | — | $ | — | ||||
Options Written | 155,952,000 | 323,600 | ||||||
Options Terminated in Closing Purchase Transactions | — | — | ||||||
Options Expired | (155,952,000 | ) | (323,600 | ) | ||||
Options Exercised | — | — | ||||||
Balance at 09/30/10 | $ | — | $ | — | ||||
Transactions in Written Swaptions on Interest Rate Swaps
USD | Premium | |||||||
Balance at 03/31/10 | $ | — | $ | — | ||||
Options Written | 36,815,000 | 708,689 | ||||||
Options Terminated in Closing Purchase Transactions | — | — | ||||||
Options Expired | — | — | ||||||
Options Exercised | — | — | ||||||
Balance at 09/30/10 | $ | 36,815,000 | $ | 708,689 | ||||
NOTE 10 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
Shares sold | Shares converted | Reinvest- ment of distribu- tions | Shares redeemed | Shares converted | Net increase (decrease) in shares outstanding | Shares sold | Proceeds from shares converted | Reinvest- ment of distribu- tions | Redemption fee proceeds | Shares redeemed | Shares converted | Net increase (decrease) | ||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | # | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||||||||
GNMA Income Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | s | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 10,909,381 | — | 1,162,840 | (10,301,785 | ) | — | 1,770,436 | 97,049,510 | — | 10,284,372 | — | (91,386,672 | ) | — | 15,947,210 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 19,576,866 | — | 2,478,996 | (24,320,182 | ) | — | (2,264,320 | ) | 170,536,214 | — | 21,550,033 | — | (211,744,101 | ) | — | (19,657,854 | ) | |||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 25,829 | — | 32,248 | (895,224 | ) | — | (837,147 | ) | 228,397 | — | 283,672 | — | (7,891,843 | ) | — | (7,379,774 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 124,001 | — | 94,320 | (1,734,225 | ) | — | (1,515,904 | ) | 1,074,963 | — | 815,731 | — | (15,015,734 | ) | — | (13,125,040 | ) | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 2,666,166 | — | 129,550 | (1,738,006 | ) | — | 1,057,710 | 23,624,871 | — | 1,141,151 | — | (15,335,082 | ) | — | 9,430,940 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 6,917,222 | — | 219,900 | (3,742,016 | ) | — | 3,395,106 | 59,949,807 | — | 1,904,907 | — | (32,451,078 | ) | — | 29,403,636 |
37
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 10 — CAPITAL SHARES (continued)
Shares sold | Shares converted | Reinvest- ment of distribu- tions | Shares redeemed | Shares converted | Net increase (decrease) in shares outstanding | Shares sold | Proceeds from shares converted | Reinvest- ment of distribu- tions | Redemption fee proceeds | Shares redeemed | Shares converted | Net increase (decrease) | ||||||||||||||||||||||||||||||||||||||||||||
Year or period | # | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 3,819,164 | — | 123,984 | (971,047 | ) | — | 2,972,101 | 34,041,073 | — | 1,099,436 | — | (8,622,782 | ) | — | 26,517,727 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 3,829,573 | — | 212,517 | (2,468,028 | ) | — | 1,574,062 | 33,449,988 | — | 1,849,714 | — | (21,534,212 | ) | — | 13,765,490 | |||||||||||||||||||||||||||||||||||||||||
Class Q(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | 3,612 | — | 155 | (407 | ) | (8,567 | ) | (5,207 | ) | 31,531 | — | 1,345 | — | (3,537 | ) | (75,518 | ) | (46,179 | ) | |||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 349,798 | — | 15,533 | (332,475 | ) | — | 32,856 | 3,122,783 | — | 137,756 | — | (2,941,319 | ) | — | 319,220 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 1,185,827 | 8,574 | 33,379 | (771,203 | ) | — | 456,577 | 10,366,023 | 75,518 | 290,807 | — | (6,732,480 | ) | — | 3,999,868 | |||||||||||||||||||||||||||||||||||||||||
High Yield Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 2,996,258 | — | 290,319 | (3,117,003 | ) | — | 169,574 | 22,051,166 | — | 2,141,822 | — | (22,822,009 | ) | — | 1,370,979 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 3,488,979 | — | 622,857 | (3,597,992 | ) | — | 513,844 | 23,171,133 | — | 4,283,036 | — | (24,366,521 | ) | — | 3,087,648 | |||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 55,731 | — | 37,259 | (412,491 | ) | — | (319,501 | ) | 410,764 | — | 274,480 | — | (3,019,105 | ) | — | (2,333,861 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 133,732 | — | 104,520 | (824,097 | ) | — | (585,845 | ) | 891,376 | — | 714,386 | — | (5,528,456 | ) | — | (3,922,694 | ) | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 159,155 | — | 37,083 | (195,816 | ) | — | 422 | 1,171,425 | — | 273,435 | — | (1,439,760 | ) | — | 5,100 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 614,472 | — | 79,902 | (483,977 | ) | — | 210,397 | 4,069,056 | — | 550,305 | — | (3,288,533 | ) | — | 1,330,828 | |||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1,423,681 | — | 20,337 | (97,814 | ) | — | 1,346,204 | 10,518,348 | — | 151,196 | — | (718,471 | ) | — | 9,951,073 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 214,679 | — | 2,830 | (3,339 | ) | — | 214,170 | 1,588,425 | — | 20,607 | — | (24,500 | ) | — | 1,584,532 | |||||||||||||||||||||||||||||||||||||||||
Intermediate Bond Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 4,997,968 | — | 797,623 | (5,812,101 | ) | — | (16,510 | ) | 47,061,679 | — | 7,521,945 | — | (54,686,612 | ) | — | (102,988 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 6,958,052 | — | 2,568,754 | (28,415,769 | ) | — | (18,888,963 | ) | 62,494,813 | — | 23,169,031 | — | (253,003,731 | ) | — | (167,339,887 | ) | |||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 74,309 | — | 29,062 | (483,670 | ) | — | (380,299 | ) | 700,536 | — | 273,124 | — | (4,533,701 | ) | — | (3,560,041 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 113,544 | — | 107,747 | (1,060,985 | ) | — | (839,694 | ) | 1,019,849 | — | 971,311 | — | (9,503,906 | ) | — | (7,512,746 | ) | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 327,802 | — | 64,302 | (710,453 | ) | — | (318,349 | ) | 3,069,415 | — | 605,285 | — | (6,659,934 | ) | — | (2,985,234 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 669,093 | — | 213,733 | (2,448,543 | ) | — | (1,565,717 | ) | 6,018,663 | — | 1,928,786 | — | (21,811,456 | ) | — | (13,864,007 | ) | |||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 7,123,997 | — | 715,453 | (6,813,425 | ) | — | 1,026,025 | 67,681,146 | — | 6,749,399 | — | (64,121,190 | ) | — | 10,309,355 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 7,079,914 | — | 2,236,388 | (18,631,494 | ) | — | (9,315,192 | ) | 63,139,964 | — | 20,172,137 | — | (166,536,338 | ) | — | (83,224,237 | ) | |||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 242,497 | — | 38,933 | (638,311 | ) | — | (356,881 | ) | 2,294,724 | — | 367,566 | — | (5,993,461 | ) | — | (3,331,171 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 710,000 | — | 119,448 | (1,028,381 | ) | — | (198,933 | ) | 6,423,330 | — | 1,080,762 | — | (9,032,616 | ) | — | (1,528,524 | ) | |||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 278,542 | — | 11,018 | (299,259 | ) | — | (9,699 | ) | 2,626,602 | — | 103,935 | — | (2,817,193 | ) | — | (86,656 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 561,868 | — | 34,185 | (776,134 | ) | — | (180,081 | ) | 5,032,515 | — | 308,868 | — | (6,916,315 | ) | — | (1,574,932 | ) | |||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 43,797 | — | 5,480 | (28,717 | ) | — | 20,560 | 409,948 | — | 51,696 | — | (269,693 | ) | — | 191,951 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 101,459 | — | 12,622 | (138,116 | ) | — | (24,035 | ) | 904,671 | — | 113,993 | — | (1,243,805 | ) | — | (225,141 | ) | |||||||||||||||||||||||||||||||||||||||
Classic Money Market Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 71,759,567 | — | 120,942 | (620,358,295 | ) | — | (548,477,786 | ) | 71,759,567 | — | 120,942 | — | (620,358,295 | ) | — | (548,477,786 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 210,222,530 | — | 1,986,848 | (714,325,550 | ) | — | (502,116,172 | ) | 210,222,530 | — | 1,986,848 | — | (714,325,550 | ) | — | (502,116,172 | ) | |||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 1,015,502 | — | 1,108 | (2,573,912 | ) | — | (1,557,302 | ) | 1,015,502 | — | 1,108 | — | (2,573,912 | ) | — | (1,557,302 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 1,237,850 | — | 23,154 | (9,385,464 | ) | — | (8,124,460 | ) | 1,237,850 | — | 23,154 | — | (9,385,464 | ) | — | (8,124,460 | ) | |||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 2,402,590 | — | 997 | (3,252,425 | ) | — | (848,838 | ) | 2,402,590 | — | 997 | — | (3,252,425 | ) | — | (848,838 | ) | |||||||||||||||||||||||||||||||||||||||
03-31-10 | 5,539,907 | — | 15,527 | (9,488,004 | ) | — | (3,932,570 | ) | 5,539,907 | — | 15,527 | — | (9,488,004 | ) | — | (3,932,570 | ) | |||||||||||||||||||||||||||||||||||||||
Institutional Prime Money Market Fund |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | 7,688,418,462 | — | 20,632 | (7,685,861,953 | ) | — | 2,577,141 | 7,688,418,462 | — | 20,632 | — | (7,685,861,953 | ) | — | 2,577,141 | |||||||||||||||||||||||||||||||||||||||||
03-31-10 | 14,422,386,767 | — | 119,162 | (14,164,212,756 | ) | — | 258,293,173 | 14,422,386,767 | — | 119,162 | — | (14,164,212,756 | ) | — | 258,293,173 | |||||||||||||||||||||||||||||||||||||||||
Class IS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-10 | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
03-31-10 | — | — | — | (1 | ) | — | (1 | ) | — | — | — | — | (1 | ) | — | (1 | ) |
(1) | Effective November 20, 2009, Class Q shareholders of GNMA Income converted to Class W shares of the Fund. |
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 11 — CREDIT RISK AND DEFAULTED SECURITIES
Although each Fund has a diversified portfolio, High Yield Bond and Intermediate Bond may invest in lower rated and comparable quality unrated high yield securities. Investments in high-yield debt securities generally provide greater income and increased opportunity for capital appreciation than investments in higher quality debt securities, but they also typically entail greater potential price volatility and principal and income risk. High-yield debt securities are not considered investment grade, and are regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and interest payments. The prices of high-yield debt securities have been found to be less sensitive to interest rate changes than higher-rated investments, but more sensitive to adverse economic downturns or individual corporate developments. The risk of loss due to default by the issuer may be significantly greater for the holders of high yielding securities, because such securities are generally unsecured and are often subordinated to other creditors of the issuer. Intermediate Bond held the following defaulted securities at September 30, 2010:
Fund | Security | Fair Value | ||||
Intermediate Bond | Greater Ohio Ethanol, LLC, 6.301%, due 12/31/13 | $ | — | |||
Greater Ohio Ethanol, LLC, 12.630%, due 12/31/13 | — | |||||
PEA Lima, LLC, 0.000%, due 03/20/14 | — | |||||
Twin Reefs Pass-through Trust, 0.000%, due 12/10/49 | — |
NOTE 12 — CONCENTRATION OF INVESTMENT RISKS
All mutual funds involve risk — some more than others — and there is always the chance that you could lose money or not earn as much as you hope. Each Fund’s risk profile is largely a factor of the principal securities in which it invests and investment techniques that it uses. For more information regarding the types of securities and investment techniques that may be used by each Fund and its corresponding risks, see each Fund’s most recent Prospectus and/or the Statement of Additional Information.
Credit Risk (All Funds). A Fund could lose money if a bond issuer (debtor) fails to repay interest and principal in a timely manner or if it goes bankrupt. This is especially true during periods of economic uncertainty or economic downturns. High-yield/high-risk bonds are especially subject to credit risk and are considered to be mostly speculative in nature.
Foreign Securities (High Yield Bond, Intermediate Bond, Classic Money Market and Institutional Money Market). There are certain risks in owning foreign securities, including those resulting from: fluctuations in currency exchange rates; devaluation of currencies; political or economic developments and the possible imposition of currency exchange blockages or other foreign governmental laws or restrictions; reduced availability of public information concerning issuers; accounting, auditing and financial reporting standards or other regulatory practices and requirements that are not uniform when compared to those applicable to domestic companies; settlement and clearance procedures in some countries that may not be reliable and can result in delays in settlement; higher transaction and custody expenses than for domestic securities; and limitations on foreign ownership of equity securities. Also, securities of many foreign companies may be less liquid and the prices more volatile than those of domestic companies.
Emerging Markets Investments (High Yield Bond). Because of less developed markets and economies and, in some countries, less mature governments and governmental institutions, the risks of investing in foreign securities can be intensified in the case of investments in issuers domiciled or doing substantial business in emerging market countries. These risks include: high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries; political and social uncertainties; overdependence on exports, especially with respect to primary commodities, making these economies vulnerable to changes in commodity prices; overburdened infrastructure and obsolete or unseasoned financial systems; environmental problems; less well-developed legal systems; and less reliable custodial services and settlement practices.
High-Yield, Lower-Grade Debt Securities Risk (High-Yield Bond and Intermediate Bond). High-yield debt securities (commonly referred to as “junk bonds”) generally present greater credit risk that an issuer cannot make timely payment of interest or principal payments than an issuer of a higher quality debt security, and typically have greater potential price volatility and principal and income risk. Changes in interest rates, the market’s perception of the issuers and the credit worthiness of the issuers may significantly affect the value of these bonds. High-yield bonds are not considered investment grade, and are
39
Table of Contents
NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 12 — CONCENTRATION OF INVESTMENT RISKS (continued)
regarded as predominantly speculative with respect to the issuing company’s continuing ability to meet principal and interest payments. The secondary market in which high-yield securities are traded may be less liquid than the market for higher grade bonds. It may be more difficult to value less liquid high-yield securities, and determination of their value may involve elements of judgment.
NOTE 13 — 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, foreign currency transactions, wash sale deferrals and the expiration of capital loss carryforwards. 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 Funds 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:
Six Months Ended September 30, 2010 | Year Ended March 31, 2010 | |||||||||||
Ordinary Income | Ordinary Income | Return of Capital | ||||||||||
GNMA Income | $ | 15,308,416 | $ | 31,648,896 | $ | — | ||||||
High Yield Bond | 4,299,667 | 8,935,053 | 298,959 | |||||||||
Intermediate Bond | 19,090,127 | 59,427,689 | — | |||||||||
Classic Money Market | 123,484 | 2,073,992 | — | |||||||||
Institutional Money Market | 1,348,155 | 4,508,251 | — |
The tax-basis components of distributable earnings and the expiration dates of the capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of March 31, 2010 were:
Undistributed Ordinary Income | Unrealized Appreciation/ (Depreciation) | Post-October Capital Losses Deferred | Capital Loss Carryforwards | Expiration Dates | ||||||||||||||||
GNMA Income | $ | 3,564,888 | $ | 25,691,061 | $ | — | $ | (5,959,779 | ) | 2013 | ||||||||||
(3,281,376 | ) | 2014 | ||||||||||||||||||
(1,506,711 | ) | 2016 | ||||||||||||||||||
(1,393,630 | ) | 2017 | ||||||||||||||||||
$ | (12,141,496 | ) | ||||||||||||||||||
High Yield Bond | — | 6,068,985 | (1,062,257 | ) | (69,190,309 | ) | 2011 | |||||||||||||
(6,099,584 | ) | 2012 | ||||||||||||||||||
(126,079 | ) | 2014 | ||||||||||||||||||
(16,938,959 | ) | 2015 | ||||||||||||||||||
(9,006,267 | ) | 2017 | ||||||||||||||||||
(14,980,165 | ) | 2018 | ||||||||||||||||||
$ | (116,341,363 | ) | ||||||||||||||||||
Intermediate Bond | 20,630,968 | 22,516,305 | (17,282 | ) | (17,571,919 | ) | 2017 | |||||||||||||
(193,454,083 | ) | 2018 | ||||||||||||||||||
$ | (211,026,002 | ) | ||||||||||||||||||
Classic Money Market | 123,437 | — | — | — | — | |||||||||||||||
Institutional Money Market | 187,320 | — | — | — | — |
The Funds’ major tax jurisdictions are federal and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2005.
As of September 30, 2010, no provision for income tax is required in the Funds’ financial statements as a result of tax positions taken on federal and state income tax returns for open tax years. The Funds’ 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.
40
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 14 — ILLIQUID SECURITIES
Pursuant to guidelines adopted by the Funds’ Board, the following securities have been deemed to be illiquid. Except for GNMA Income, the Funds may invest up to 15% (10% for Classic Money Market and Institutional Money Market) of their net assets in illiquid securities. Fair value for certain securities was determined by ING Funds Valuation Committee appointed by the Funds’ Board and in accordance with the methods specifically authorized by the Board.
Fund | Security | Principal | Initial | Cost | Value | Percent of | ||||||||||||||||
High Yield Bond | American Media Stock Certificates | 5,810 | 2/3/2009 | $ | 128,699 | $ | 6 | 0.0 | % | |||||||||||||
$ | 128,699 | $ | 6 | 0.0 | % | |||||||||||||||||
Intermediate Bond | BNY Institutional Cash Reserves Fund, Series B | 3,329,856 | 09/12/08 | $ | 3,329,856 | $ | 2,663,885 | 0.3 | % | |||||||||||||
Greater Ohio Ethanol, LLC, | 1,800,000 | 11/21/06 | 1,791,000 | — | 0.0 | % | ||||||||||||||||
Greater Ohio Ethanol, LLC, | 2,200,000 | 11/21/06 | 2,172,500 | — | 0.0 | % | ||||||||||||||||
Nordea Kredit Realkreditaktieselskab, | 19 | 04/16/04 | 3 | 4 | 0.0 | % | ||||||||||||||||
PEA Lima, LLC, 0.000%, due 03/20/14 | 277,964 | 03/20/09 | 35,012 | — | 0.0 | % | ||||||||||||||||
Twin Reefs Pass-through Trust, | 1,583,000 | 12/07/04 | 1,244,595 | — | 0.0 | % | ||||||||||||||||
$ | 8,572,966 | $ | 2,663,889 | 0.3 | % | |||||||||||||||||
NOTE 15 — SECURITIES LENDING
Under an agreement with The Bank of New York Mellon (“BNY”), the Funds can lend their securities to approved brokers, dealers and other financial institutions. Loans are collateralized by cash and U.S. government securities. The collateral is equal to at least 105% of the market value of non-U.S. securities loaned and 102% of the market value of U.S. securities loaned. The market value of the loaned securities is determined at the close of business of the Funds at their last sale price or official closing price on the principal exchange or system on which they are traded and any additional collateral is delivered to the Funds on the next business day. The cash collateral received is invested in approved investments as defined in the Securities Lending Agreement with BNY (the “Agreement”). The Funds bear the risk of loss with respect to the investment of collateral. Currently, the cash collateral is invested in the BNY Mellon Overnight Government Fund (formerly, The BNY Institutional Cash Reserves Fund —Series A) and the BNY Institutional Cash Reserves Fund —Series B (“BICR —Series B”), each a series within the BNY Institutional Cash Reserves Trust (collectively, the “BICR Fund”). BNY serves as investment manager, custodian and operational trustee of the BICR Fund. As of September 30, 2010, and throughout the period covered by this report, BICR — Series B held certain defaulted securities issued by Lehman Brothers Holdings, Inc. (the “Lehman Securities”). The Lehman Securities have market values significantly below
amortized cost. On May 22, 2009, the Funds agreed to the terms of a capital support agreement (the “Capital Support Agreement”) extended by The Bank of New York Mellon Corporation (“BNYC”), an affiliated company of BNY, for the Lehman Securities held by BICR — Series B. Under the terms of the Capital Support Agreement, BNYC will support the value of the Lehman Securities up to 80% of the par value (the remaining 20% of the par value represents an unrealized loss to the Funds) and subject, in part, to the Funds’ continued participation in the BNY securities lending program through September 15, 2011. At September 15, 2011, if the Funds have complied with the requirements under the Capital Support Agreement to continue to participate in the BNY securities lending program and if such securities have not otherwise been sold, the Funds will have the right to sell the defaulted securities to BNYC at a price equal to 80% of par value. The recorded value of each Fund’s investment in BICR —Series B includes the value of the underlying securities held by BICR — Series B and the estimated value of the support to be provided by BNYC. The investments in the BNY Mellon Overnight Government Fund and in BICR —Series B are included in the Portfolio of Investments under Securities Lending Collateral and the unrealized loss on BICR — Series B is included in Net Unrealized Depreciation on the Statements of Assets and Liabilities.
Generally, in the event of counterparty default, the Funds have the right to use the collateral to offset
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NOTES TO FINANCIAL STATEMENTSASOF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED)
NOTE 15 — SECURITIES LENDING (continued)
losses incurred. The Agreement contains certain guarantees by BNY in the event of counterparty default and/or a borrower’s failure to return a loaned security; however, there would be a potential loss to the Funds in the event the Funds are delayed or prevented from exercising their right to dispose of the collateral. Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other
risks associated with investing in a Fund. At September 30, 2010, the following Fund had securities on loan with the following market values:
Value of Securities Loaned | Cash Collateral Received* | |||||||
Intermediate Bond | $ | 19,898,258 | $ | 20,324,526 |
* | Cash collateral received was invested in the BICR Fund, the fair value of which is presented in the respective Fund’s Summary Portfolio of Investments. |
NOTE 16 — SUBSEQUENT EVENTS
Subsequent to September 30, 2010, the following Funds declared dividends of:
Type | Per Share Amount | Payable Date | Record Date | |||||||||||||
GNMA Income | ||||||||||||||||
Class A | NII | $ | 0.0291 | October 4, 2010 | September 30, 2010 | |||||||||||
Class B | NII | $ | 0.0235 | October 4, 2010 | September 30, 2010 | |||||||||||
Class C | NII | $ | 0.0238 | October 4, 2010 | September 30, 2010 | |||||||||||
Class I | NII | $ | 0.0313 | October 4, 2010 | September 30, 2010 | |||||||||||
Class W | NII | $ | 0.0309 | October 4, 2010 | September 30, 2010 | |||||||||||
Class A | NII | $ | 0.0291 | November 2, 2010 | October 29, 2010 | |||||||||||
Class B | NII | $ | 0.0233 | November 2, 2010 | October 29, 2010 | |||||||||||
Class C | NII | $ | 0.0235 | November 2, 2010 | October 29, 2010 | |||||||||||
Class I | NII | $ | 0.0314 | November 2, 2010 | October 29, 2010 | |||||||||||
Class W | NII | $ | 0.0310 | November 2, 2010 | October 29, 2010 | |||||||||||
High Yield Bond | ||||||||||||||||
Class A | NII | $ | 0.0462 | November 1, 2010 | Daily | |||||||||||
Class B | NII | $ | 0.0412 | November 1, 2010 | Daily | |||||||||||
Class C | NII | $ | 0.0414 | November 1, 2010 | Daily | |||||||||||
Class I | NII | $ | 0.0525 | November 1, 2010 | Daily | |||||||||||
Intermediate Bond | ||||||||||||||||
Class A | NII | $ | 0.0122 | November 1, 2010 | Daily | |||||||||||
Class B | NII | $ | 0.0067 | November 1, 2010 | Daily | |||||||||||
Class C | NII | $ | 0.0066 | November 1, 2010 | Daily | |||||||||||
Class I | NII | $ | 0.0145 | November 1, 2010 | Daily | |||||||||||
Class O | NII | $ | 0.0123 | November 1, 2010 | Daily | |||||||||||
Class R | NII | $ | 0.0105 | November 1, 2010 | Daily | |||||||||||
Class W | NII | $ | 0.0142 | November 1, 2010 | Daily | |||||||||||
Institutional Money Market | ||||||||||||||||
Class I | NII | $ | 0.0002 | November 1, 2010 | Daily | |||||||||||
Class IS | NII | $ | 0.0003 | November 1, 2010 | Daily |
NII - Net investment income
On October 21, 2010, the Board approved a proposal to liquidate Classic Money Market. It is expected that the liquidation will take place during the first quarter of 2011. On October 21, 2010, the Board approved a proposal to liquidate Institutional Money Market. It is expected that the liquidation will take place on or about December 20, 2010.
The Funds have evaluated events occurring after the Statements 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.
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ING GNMA INCOME FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Fair Value | Percent of Net Assets | ||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS: 105.2% | ||||||||||||||||
Federal Home Loan Mortgage Corporation##: 2.0% | ||||||||||||||||
$ | 3,624,549 | S, ^ | 5.500%, due 09/15/35 | $ | 620,799 | 2.0 | ||||||||||
7,332,689 | 5.500%, due 02/01/40 | 7,783,445 | ||||||||||||||
5,184,361 | S | 6.000%, due 05/15/36 | 5,893,592 | |||||||||||||
1,212,107 | 9.000%, due 12/17/30 | 1,414,939 | ||||||||||||||
28,817,923 | S, ^ | 0.500%-9.500%, due 01/01/30 -10/25/23 | 929,104 | |||||||||||||
16,641,879 | 2.0 | |||||||||||||||
Federal National Mortgage Association##: 16.9% | ||||||||||||||||
20,000,000 | W | 4.000%, due 07/25/39 | 20,562,500 | 16.9 | ||||||||||||
36,900,000 | W | 4.500%, due 10/15/35 | 38,433,626 | |||||||||||||
43,493,462 | 4.500%, due 09/01/40 | 45,355,994 | ||||||||||||||
14,128,182 | 5.500%, due 02/01/40 - 08/01/40 | 15,031,903 | ||||||||||||||
6,789,890 | S | 6.000%, due 02/25/36 | 7,225,852 | |||||||||||||
9,549,972 | 6.000%, due 11/25/31 - 04/25/32 | 10,460,430 | ||||||||||||||
742,848 | 6.600%, due 07/01/27 - 06/01/28 | 838,378 | ||||||||||||||
2,700,948 | 8.000%, due 12/25/45 | 3,210,752 | ||||||||||||||
483,034 | S | 6.500% - 8.500%, due 06/01/14 -02/01/29 | 539,750 | |||||||||||||
141,659,185 | 16.9 | |||||||||||||||
Government National Mortgage Association: 86.3% | ||||||||||||||||
90,271,380 | S, ^ | 0.887%, due 01/16/50 | 4,942,358 | 86.3 | ||||||||||||
97,501,720 | S, ^ | 0.985%, due 11/16/46 | 4,192,623 | |||||||||||||
3,557,083 | S | 4.000%, due 05/20/33 - 08/20/35 | 3,689,886 | |||||||||||||
5,667,869 | 4.000%, due 05/15/40 - 09/15/40 | 5,873,146 | ||||||||||||||
30,000,000 | W | 4.500%, due 03/15/39 | 31,565,640 | |||||||||||||
19,002,400 | S | 4.500%, due 01/20/34 - 02/20/40 | 20,036,793 |
Principal Amount | Fair Value | Percent of Net Assets | ||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS: (continued) | ||||||||||||||||
Government National Mortgage Association: (continued) | ||||||||||||||||
$ | 70,020,438 | S, ^ | 5.000%, due 05/20/35 - 04/20/37 | $ | 8,656,443 | |||||||||||
97,667,836 | S | 5.000%, due 10/20/33 - 03/20/24 | 104,068,947 | |||||||||||||
87,496,793 | 5.000%, due 04/15/30 - 04/15/29 | 93,501,130 | ||||||||||||||
1,704,717 | 5.250%, due 11/20/36 - 01/20/38 | 1,826,372 | ||||||||||||||
24,331,157 | S | 5.500%, due 04/20/34 - 12/15/36 | 26,269,252 | |||||||||||||
138,214,488 | 5.500%, due 10/15/32 - 04/20/29 | 149,795,288 | ||||||||||||||
2,619,188 | 5.600%, due 12/20/36 - 02/20/38 | 2,832,065 | ||||||||||||||
552,680 | 5.625%, due 04/15/39 | 596,406 | ||||||||||||||
9,665,851 | S | 5.630%, due 07/15/45 | 10,150,429 | |||||||||||||
8,352,843 | 5.750%, due 07/20/38 - 07/20/29 | 9,219,863 | ||||||||||||||
5,560,305 | 5.950%, due 02/15/44 | 6,170,305 | ||||||||||||||
1,884,182 | 5.970%, due 11/15/31 | 2,087,822 | ||||||||||||||
16,871,723 | 5.980%, due 01/20/30 - 07/20/34 | 18,502,337 | ||||||||||||||
10,700,559 | S | 6.000%, due 09/15/32-02/15/29 | 11,715,142 | |||||||||||||
94,591,368 | 6.000%, due 02/15/32 - 12/15/29 | 103,244,127 | ||||||||||||||
3,573,363 | 6.200%, due 02/20/30-12/20/29 | 3,976,285 | ||||||||||||||
19,374,628 | S, ^ | 6.243%, due 09/20/38 | 2,889,141 | |||||||||||||
589,967 | 6.250%, due 09/15/27 - 09/15/29 | 654,256 | ||||||||||||||
581,107 | 6.280%, due 01/20/26 - 05/20/26 | 640,329 | ||||||||||||||
35,703,124 | 6.500%, due 08/20/31 - 07/20/29 | 39,385,459 | ||||||||||||||
2,806,948 | 6.600%, due 10/20/26 - 07/20/28 | 3,160,912 | ||||||||||||||
1,121,024 | 6.750%, due 04/20/37 - 11/15/28 | 1,248,627 | ||||||||||||||
2,112,553 | S | 7.000%, due 04/15/32 - 11/15/27 | 2,416,856 | |||||||||||||
23,830,210 | 7.000%, due 05/15/31 - 07/15/29 | 26,803,326 | ||||||||||||||
6,321,444 | 7.200%, due 03/15/39 | 7,070,053 |
See Accompanying Notes to Financial Statements
43
Table of Contents
ING GNMA INCOME FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Fair Value | Percent of Net Assets | ||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS: (continued) | ||||||||||||||||
Government National Mortgage Association: (continued) | ||||||||||||||||
$ | 5,564,918 | S, ^ | 7.243%, due 05/16/31 | $ | 1,224,785 | |||||||||||
3,372,010 | S, ^ | 7.343%, due 10/16/29 | 646,076 | |||||||||||||
4,032,991 | 7.350%, due 03/15/43 | 4,505,939 | ||||||||||||||
1,588,288 | S | 7.500%, due 10/15/38 - 08/20/27 | 1,763,915 | |||||||||||||
695,175 | 7.500%, due 10/15/30 - 12/15/28 | 801,826 | ||||||||||||||
1,031,072 | S | 9.000%, due 01/15/31 | 1,118,553 | |||||||||||||
17,760,025 | S, ^ | 4.500% - 31.466%, due 04/20/31 -02/15/29 | 6,625,256 | |||||||||||||
723,867,968 | 86.3 | |||||||||||||||
Other U.S. Agency Obligations: 0.0% | ||||||||||||||||
5,668 | Small Business Administration, 8.250%, due 11/01/11 | 5,777 | 0.0 | |||||||||||||
Total U.S. Government Agency Obligations (Cost $849,683,478) | 882,174,809 | 105.2 | ||||||||||||||
Principal Amount | Fair Value | Percent of Net Assets | ||||||||||||
U.S. TREASURY OBLIGATIONS: 0.7% | ||||||||||||||
U.S. Treasury Notes: 0.7% | ||||||||||||||
$ | 5,600,000 | 3.875%, due 08/15/40 | $ | 5,789,874 | 0.7 | |||||||||
Total U.S. Treasury Obligations (Cost $5,857,286) | 5,789,874 | 0.7 | ||||||||||||
Total Investments in Securities (Cost $855,540,764)* | $ | 887,964,683 | 105.9 | |||||||||||
Other Assets and Liabilities - Net | (49,777,595 | ) | (5.9 | ) | ||||||||||
Net Assets | $ | 838,187,088 | 100.0 | |||||||||||
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
## | 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. |
S | All or a portion of this security has been identified by the Fund to cover future collateral requirements for applicable futures, options, swaps, foreign currency contracts and/or when-issued or delayed-delivery securities. |
^ | 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 $855,777,606. |
Net unrealized appreciation consists of: | ||||
Gross Unrealized Appreciation | $ | 34,874,954 | ||
Gross Unrealized Depreciation | (2,687,877 | ) | ||
Net Unrealized Appreciation | $ | 32,187,077 | ||
Fair Value Measurements^
The following is a summary of the fair valuations according to the inputs used as of September 30, 2010 in valuing the Fund’s assets and liabilities:
Quoted Prices in Active Markets for Identical Investments (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at 9/30/2010 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at fair value | ||||||||||||||||
U.S. Government Agency Obligations | $ | — | $ | 882,174,809 | $ | — | $ | 882,174,809 | ||||||||
U.S. Treasury Obligations | — | 5,789,874 | — | 5,789,874 | ||||||||||||
Total Investments, at fair value | $ | — | $ | 887,964,683 | $ | — | $ | 887,964,683 | ||||||||
^ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
44
Table of Contents
ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: 96.1% | ||||||||||||||||
Consumer Discretionary: 27.0% | ||||||||||||||||
$ | 555,000 | # | Accuride Corp., 9.500%, due 08/01/18 | $ | 585,525 | 0.5 | ||||||||||
255,000 | # | Affinia Group, Inc., 10.750%, due 08/15/16 | 284,963 | 0.2 | ||||||||||||
935,000 | AMC Entertainment, Inc., 11.000%, due 02/01/16 | 1,002,788 | 0.8 | |||||||||||||
225,000 | # | American Axle & Manufacturing Holdings, Inc., 9.250%, due 01/15/17 | 247,500 | 0.5 | ||||||||||||
315,000 | American Axle & Manufacturing, Inc., 5.250%, due 02/11/14 | 299,644 | ||||||||||||||
33,151 | &, # | American Media Operations, Inc., 9.000%, due 05/01/13 | 33,814 | 0.0 | ||||||||||||
7,957 | &, # | American Media Operations, Inc., 14.000%, due 11/01/13 | 5,222 | |||||||||||||
905,000 | Cablevision Systems Corp., 7.750% - 8.000%, due 04/15/18 -04/15/20 | 970,001 | 0.8 | |||||||||||||
775,000 | # | CCO Holdings LLC/ CCO Holdings Capital Corp., 7.250%, due 10/30/17 | 789,531 | 1.1 | ||||||||||||
500,000 | # | CCO Holdings LLC/ CCO Holdings Capital Corp., 8.125%, due 04/30/20 | 532,500 | |||||||||||||
420,000 | # | Cedar Fair L.P./Canada’s Wonderland Co/Magnum Management Corp., 9.125%, due 08/01/18 | 443,100 | 0.4 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Consumer Discretionary: (continued) | ||||||||||||||||
$ | 805,000 | # | Cequel Communications Holdings I, LLC and Cequel Capital Corp., 8.625%, due 11/15/17 | $ | 853,300 | 0.7 | ||||||||||
265,000 | # | Cooper-Standard Automotive, Inc., 8.500%, due 05/01/18 | 276,263 | 0.2 | ||||||||||||
1,090,000 | Harrah’s Operating Co., Inc., 10.000%, due 12/15/18 | 876,088 | 1.7 | |||||||||||||
1,055,000 | Harrah’s Operating Co., Inc., 11.250%, due 06/01/17 | 1,160,500 | ||||||||||||||
490,000 | # | LIN Television Corp., 8.375%, due 04/15/18 | 520,013 | 0.8 | ||||||||||||
405,000 | LIN Television Corp., 6.500%, due 05/15/13 | 407,025 | ||||||||||||||
195,000 | # | Marina District Finance Co., Inc., 9.500%, due 10/15/15 | 190,125 | 0.4 | ||||||||||||
260,000 | # | Marina District Finance Co., Inc., 9.875%, due 08/15/18 | 252,200 | |||||||||||||
850,000 | # | McJunkin Red Man Corp., 9.500%, due 12/15/16 | 752,250 | 0.6 | ||||||||||||
815,000 | Media General, Inc., 11.750%, due 02/15/17 | 886,313 | 0.8 | |||||||||||||
505,000 | # | MGM Resorts International, 9.000%, due 03/15/20 | 534,038 | 1.0 | ||||||||||||
695,000 | MGM Resorts International, 7.625% - 10.375%, due 05/15/14 - 01/15/17 | 691,613 |
See Accompanying Notes to Financial Statements
45
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Consumer Discretionary: (continued) | ||||||||||||||||
$ | 935,000 | Michaels Stores, Inc., 0.000% - 11.375%, due 11/01/16 | $ | 970,201 | 0.8 | |||||||||||
375,000 | # | Nexstar Broadcasting, Inc./ Mission Broadcasting, Inc., 8.875%, due 04/15/17 | 392,813 | 0.3 | ||||||||||||
403,987 | &, # | Nexstar Finance, Inc., 7.000%, due 01/15/14 | 390,857 | 0.3 | ||||||||||||
685,000 | + | Nielsen Finance LLC/Nielsen Finance Co., 0.000% (step rate 12.500%), due 08/01/16 | 689,281 | 1.0 | ||||||||||||
430,000 | Nielsen Finance LLC/Nielsen Finance Co., 7.750% - 10.000%, due 08/01/14 -10/15/18 | 441,790 | ||||||||||||||
540,000 | # | Rite Aid Corp., 6.875%, due 12/15/28 | 287,550 | 0.3 | ||||||||||||
195,000 | # | Scientific Games Corp., 8.125%, due 09/15/18 | 199,875 | 0.2 | ||||||||||||
455,000 | # | Sinclair Television Group, Inc., 8.375%, due 10/15/18 | 460,688 | 0.7 | ||||||||||||
385,000 | # | Sinclair Television Group, Inc., 9.250%, due 11/01/17 | 414,838 | |||||||||||||
895,000 | # | Sirius XM Radio, Inc., 8.750%, due 04/01/15 | 955,413 | 0.8 | ||||||||||||
200,000 | # | Sitel LLC/Sitel Finance Corp., 11.500%, due 04/01/18 | 161,000 | 0.1 | ||||||||||||
630,000 | Toys R Us Property Co. I LLC, 10.750%, due 07/15/17 | 715,050 | 0.6 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Consumer Discretionary: (continued) | ||||||||||||||||
$ | 430,000 | # | Toys R Us Property Co., LLC, 8.500%, due 12/01/17 | $ | 456,875 | 0.4 | ||||||||||
410,000 | # | Visant Corp., 10.000%, due 10/01/17 | 429,475 | 0.4 | ||||||||||||
315,000 | # | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., 7.750%, due 08/15/20 | 333,900 | 0.3 | ||||||||||||
Other Securities | 12,301,107 | 10.3 | ||||||||||||||
32,195,029 | 27.0 | |||||||||||||||
Consumer Staples: 6.8% | ||||||||||||||||
560,000 | # | Cenveo Corp., 10.500%, due 08/15/16 | 575,400 | 0.7 | ||||||||||||
245,000 | Cenveo Corp., 8.875%, due 02/01/18 | 243,469 | ||||||||||||||
265,000 | # | Cott Beverages USA, Inc., 8.125%, due 09/01/18 | 281,894 | 0.2 | ||||||||||||
435,000 | # | Cott Beverages, Inc., 8.375%, due 11/15/17 | 462,188 | 0.4 | ||||||||||||
650,000 | JBS USA LLC/JBS USA Finance, Inc., 11.625%, due 05/01/14 | 754,000 | 0.6 | |||||||||||||
470,000 | # | RSC Equipment Rental, Inc., 10.000%, due 07/15/17 | 525,225 | 0.4 | ||||||||||||
920,000 | &, # | ServiceMaster Co, 10.750%, due 07/15/15 | 984,400 | 1.1 | ||||||||||||
420,000 | ServiceMaster Co, 7.450%, due 08/15/27 | 321,300 | ||||||||||||||
385,000 | # | Spectrum Brands Holdings, Inc., 9.500%, due 06/15/18 | 413,394 | 0.4 | ||||||||||||
675,000 | # | Tops Markets, LLC, 10.125%, due 10/15/15 | 728,156 | 0.6 | ||||||||||||
Other Securities | 2,870,887 | 2.4 | ||||||||||||||
8,160,313 | 6.8 |
See Accompanying Notes to Financial Statements
46
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Energy: 11.3% | ||||||||||||||||
$ | 675,000 | Anadarko Petroleum Corp., 6.450%, due 09/15/36 | $ | 677,934 | 0.6 | |||||||||||
200,000 | # | ATP Oil & Gas Corp., 11.875%, due 05/01/15 | 173,500 | 0.1 | ||||||||||||
290,000 | # | Brigham Exploration Co., 8.750%, due 10/01/18 | 300,150 | 0.2 | ||||||||||||
735,000 | Chaparral Energy, Inc., 8.875%, due 02/01/17 | 718,463 | 0.8 | |||||||||||||
205,000 | # | Chaparral Energy, Inc., 9.875%, due 10/01/20 | 209,100 | |||||||||||||
200,000 | # | Consol Energy, Inc., 8.000%, due 04/01/17 | 217,500 | 0.4 | ||||||||||||
200,000 | # | Consol Energy, Inc., 8.250%, due 04/01/20 | 219,500 | |||||||||||||
775,000 | # | Hilcorp Energy I L.P./Hilcorp Finance Co., 8.000%, due 02/15/20 | 800,188 | 0.7 | ||||||||||||
275,000 | # | Linn Energy LLC/Linn Energy Finance Corp., 7.750%, due 02/01/21 | 278,781 | 0.6 | ||||||||||||
360,000 | # | Linn Energy LLC/Linn Energy Finance Corp., 8.625%, due 04/15/20 | 383,400 | |||||||||||||
215,000 | # | Murray Energy Corp., 10.250%, due 10/15/15 | 224,138 | 0.2 | ||||||||||||
325,000 | # | NFR Energy LLC/NFR Energy Finance Corp., 9.750%, due 02/15/17 | 326,625 | 0.3 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Energy: (continued) | ||||||||||||||||
$ | 35,000 | # | OPTI Canada, Inc., 9.000%, due 12/15/12 | $ | 35,613 | 0.6 | ||||||||||
115,000 | # | OPTI Canada, Inc., 9.750%, due 08/15/13 | 117,300 | |||||||||||||
725,000 | OPTI Canada, Inc., 8.250%, due 12/15/14 | 554,625 | ||||||||||||||
400,000 | # | PetroHawk Energy Corp., 7.250%, due 08/15/18 | 410,000 | 0.3 | ||||||||||||
730,000 | Plains Exploration & Production Co., 7.625%, due 06/01/18 | 770,150 | 0.6 | |||||||||||||
755,000 | # | SandRidge Energy, Inc., 8.000%, due 06/01/18 | 739,900 | 0.8 | ||||||||||||
230,000 | # | SandRidge Energy, Inc., 8.750%, due 01/15/20 | 228,850 | |||||||||||||
600,000 | Swift Energy Co., 8.875%, due 01/15/20 | 627,750 | 0.7 | |||||||||||||
245,000 | Swift Energy Co., 7.125%, due 06/01/17 | 243,775 | ||||||||||||||
Other Securities | 5,224,975 | 4.4 | ||||||||||||||
13,482,217 | 11.3 | |||||||||||||||
Financials: 11.3% | ||||||||||||||||
275,000 | # | Ally Financial, Inc., 7.500%, due 09/15/20 | 294,250 | 1.8 | ||||||||||||
1,435,000 | # | Ally Financial, Inc., 8.000%, due 03/15/20 | 1,571,325 | |||||||||||||
224,000 | Ally Financial, Inc., 6.750%, due 12/01/14 | 235,620 | ||||||||||||||
750,000 | Atlantic Broadband Finance, LLC, 9.375%, due 01/15/14 | 764,063 | 0.6 |
See Accompanying Notes to Financial Statements
47
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Financials: (continued) | ||||||||||||||||
$ | 1,130,000 | CIT Group, Inc., 7.000%, due 05/01/15 | $ | 1,127,175 | 2.3 | |||||||||||
865,000 | CIT Group, Inc., 7.000%, due 05/01/17 | 850,944 | ||||||||||||||
805,000 | CIT Group, Inc., 7.000%, due 05/01/14-05/01/16 | 804,388 | ||||||||||||||
760,000 | Felcor Lodging L.P., 10.000%, due 10/01/14 | 829,350 | 0.7 | |||||||||||||
600,000 | Ford Motor Credit Co., LLC, 6.625%, due 08/15/17 | 640,145 | 2.1 | |||||||||||||
945,000 | Ford Motor Credit Co., LLC, 8.125%, due 01/15/20 | 1,087,684 | ||||||||||||||
690,000 | Ford Motor Credit Co., LLC, 8.700%, due 10/01/14 | 774,751 | ||||||||||||||
298,000 | # | International Lease Finance Corp., 8.625%, due 09/15/15 | 319,605 | 1.4 | ||||||||||||
1,295,000 | International Lease Finance Corp., 5.400% - 6.375%, due 02/15/12-06/01/14 | 1,288,856 | ||||||||||||||
465,000 | # | LBI Escrow Corp., 8.000%, due 11/01/17 | 509,175 | 0.4 | ||||||||||||
455,000 | # | Pinafore LLC/Pinafore, Inc., 9.000%, due 10/01/18 | 480,025 | 0.4 | ||||||||||||
355,000 | # | Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp., 8.250%, due 09/01/17 | 360,325 | 0.3 | ||||||||||||
305,000 | # | SSI Investments II/SSI Co-Issuer LLC, 11.125%, due 06/01/18 | 336,263 | 0.3 | ||||||||||||
Other Securities | 1,207,950 | 1.0 | ||||||||||||||
13,481,894 | 11.3 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Health Care: 8.2% | ||||||||||||||||
$ | 1,018,000 | & | Biomet, Inc., 10.375%-11.625%, due 10/15/17 | $ | 1,136,919 | 0.9 | ||||||||||
450,000 | # | Gentiva Health Services, Inc., 11.500%, due 09/01/18 | 482,625 | 0.4 | ||||||||||||
860,000 | HCA, Inc., 7.250%, due 09/15/20 | 924,500 | 1.6 | |||||||||||||
905,000 | HCA, Inc., 7.875%, due 02/15/20 | 994,369 | ||||||||||||||
405,000 | # | Mylan, Inc./PA, 7.875%, due 07/15/20 | 435,881 | 0.4 | ||||||||||||
320,000 | # | Radnet Management, Inc., 10.375%, due 04/01/18 | 294,400 | 0.2 | ||||||||||||
670,000 | # | Tenet Healthcare Corp., 8.000%, due 08/01/20 | 670,000 | 0.6 | ||||||||||||
200,000 | # | UHS Escrow Corp., 7.000%, due 10/01/18 | 207,500 | 0.2 | ||||||||||||
775,000 | US Oncology, Inc., 10.750%, due 08/15/14 | 809,875 | 0.9 | |||||||||||||
225,000 | US Oncology, Inc., 9.125%, due 08/15/17 | 239,625 | ||||||||||||||
75,000 | # | Valeant Pharmaceuticals International, 6.750%, due 10/01/17 | 76,688 | 0.3 | ||||||||||||
245,000 | # | Valeant Pharmaceuticals International, 7.000%, due 10/01/20 | 251,125 | |||||||||||||
Other Securities | 3,203,283 | 2.7 | ||||||||||||||
9,726,790 | 8.2 | |||||||||||||||
Industrials: 6.9% | ||||||||||||||||
455,000 | # | Amsted Industries, Inc., 8.125%, due 03/15/18 | 476,044 | 0.4 |
See Accompanying Notes to Financial Statements
48
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Industrials: (continued) | ||||||||||||||||
$ | 310,000 | # | Bombardier, Inc., 7.500%, due 03/15/18 | $ | 334,800 | 0.6 | ||||||||||
310,000 | # | Bombardier, Inc., 7.750%, due 03/15/20 | 336,350 | |||||||||||||
160,000 | # | Case New Holland, Inc., 7.875%, due 12/01/17 | 174,600 | 0.1 | ||||||||||||
1,290,000 | Z | Goodman Global Group, Inc., 10.700%, due 12/15/14 | 832,050 | 0.7 | ||||||||||||
585,000 | # | Martin Midstream Partners L.P./ Martin Midstream Finance Corp., 8.875%, due 04/01/18 | 590,850 | 0.5 | ||||||||||||
500,000 | # | NXP BV/NXP Funding, LLC, 9.750%, due 08/01/18 | 535,000 | 0.4 | ||||||||||||
195,000 | # | Severstal Columbus LLC, 10.250%, due 02/15/18 | 205,725 | 0.2 | ||||||||||||
310,000 | # | SPX Corp., 6.875%, due 09/01/17 | 330,150 | 0.3 | ||||||||||||
270,000 | # | Stoneridge, Inc., 9.500%, due 10/15/17 | 278,100 | 0.2 | ||||||||||||
800,000 | United Rentals North America, Inc., 7.750% - 9.250%, due 11/15/13 -12/15/19 | 850,500 | 0.7 | |||||||||||||
Other Securities | 3,335,176 | 2.8 | ||||||||||||||
8,279,345 | 6.9 | |||||||||||||||
Information Technology: 4.5% | ||||||||||||||||
245,000 | # | Advanced Micro Devices, Inc., 7.750%, due 08/01/20 | 254,188 | 0.2 | ||||||||||||
245,000 | # | Aspect Software, Inc., 10.625%, due 05/15/17 | 255,719 | 0.2 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Information Technology: (continued) | ||||||||||||||||
$ | 1,025,859 | & | First Data Corp., 9.875% - 11.250%, due 09/24/15 -03/31/16 | $ | 801,518 | 0.7 | ||||||||||
585,000 | # | Freescale Semiconductor, Inc., 10.750%, due 08/01/20 | 589,388 | 0.5 | ||||||||||||
432,000 | # | Insight.com, 9.375%, due 07/15/18 | 461,160 | 0.4 | ||||||||||||
95,000 | # | JDA Software Group, Inc., 8.000%, due 12/15/14 | 101,175 | 0.1 | ||||||||||||
400,000 | # | Kemet Corp., 10.500%, due 05/01/18 | 420,500 | 0.3 | ||||||||||||
649,000 | SunGard Data Systems, Inc., 9.125%, due 08/15/13 | 666,036 | 0.9 | |||||||||||||
396,000 | SunGard Data Systems, Inc., 10.250%, due 08/15/15 | 418,770 | ||||||||||||||
Other Securities | 1,403,841 | 1.2 | ||||||||||||||
5,372,295 | 4.5 | |||||||||||||||
Materials: 6.6% | ||||||||||||||||
380,000 | # | ABI Escrow Corp., 10.250%, due 10/15/18 | 388,550 | 0.3 | ||||||||||||
220,000 | # | Chemtura Corp., 7.875%, due 09/01/18 | 230,450 | 0.2 | ||||||||||||
780,000 | Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875% - 9.750%, due 11/15/14 -02/01/18 | 798,300 | 0.7 | |||||||||||||
195,000 | # | Huntsman International, LLC, 8.625%, due 03/15/21 | 202,800 | 0.2 | ||||||||||||
800,000 | Nova Chemicals Corp., 8.375% - 8.625%, due 11/01/16 -11/01/19 | 848,713 | 0.7 |
See Accompanying Notes to Financial Statements
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Materials: (continued) | ||||||||||||||||
$ | 290,000 | # | Plastipak Holdings, Inc., 10.625%, due 08/15/19 | $ | 323,350 | 0.3 | ||||||||||
295,000 | # | Steel Dynamics, Inc., 7.625%, due 03/15/20 | 307,538 | 0.2 | ||||||||||||
75,000 | # | Vertellus Specialties, Inc., 9.375%, due 10/01/15 | 78,000 | 0.1 | ||||||||||||
Other Securities | 4,682,835 | 3.9 | ||||||||||||||
7,860,536 | 6.6 | |||||||||||||||
Telecommunication Services: 8.8% | ||||||||||||||||
690,000 | Cincinnati Bell, Inc., 7.000%, due 02/15/15 | 693,450 | 1.1 | |||||||||||||
590,000 | Cincinnati Bell, Inc., 8.750%, due 03/15/18 | 578,200 | ||||||||||||||
270,000 | # | Clearwire Communications, LLC/Clearwire Finance, Inc., 12.000%, due 12/01/15 | 292,275 | 0.2 | ||||||||||||
680,000 | Frontier Communications Co., 9.000%, due 08/15/31 | 728,450 | 1.3 | |||||||||||||
710,000 | Frontier Communications Corp., 8.250% - 8.500%, due 04/15/17 -04/15/20 | 785,213 | ||||||||||||||
45,000 | # | Intelsat Jackson Holdings Ltd., 8.500%, due 11/01/19 | 49,050 | 0.0 | ||||||||||||
1,265,879 | & | Intelsat Luxembourg S.A., 11.500%, due 02/04/17 | 1,378,226 | 1.5 | ||||||||||||
345,000 | Intelsat Luxembourg S.A., 11.250%, due 02/04/17 | 371,306 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Telecommunication Services: (continued) | ||||||||||||||||
$ | 650,000 | Nextel Communications, Inc., 5.950%, due 03/15/14 | $ | 650,000 | 1.0 | |||||||||||
615,000 | Nextel Communications, Inc., 7.375%, due 08/01/15 | 621,150 | ||||||||||||||
840,000 | Sprint Capital Corp., 6.875% - 8.750%, due 03/15/32 -11/15/28 | 829,500 | 0.7 | |||||||||||||
295,000 | # | West Corp., 8.625%, due 10/01/18 | 295,000 | 0.8 | ||||||||||||
585,000 | West Corp., 9.500% - 11.000%, due 10/15/14 -10/15/16 | 620,344 | ||||||||||||||
Other Securities | 2,637,665 | 2.2 | ||||||||||||||
10,529,829 | 8.8 | |||||||||||||||
Utilities: 4.7% | ||||||||||||||||
83,000 | # | AES Corp., 8.750%, due 05/15/13 | 84,453 | 0.1 | ||||||||||||
290,000 | # | Calpine Corp., 7.875%, due 07/31/20 | 299,425 | 0.3 | ||||||||||||
1,015,000 | # | Energy Future Holdings Corp., 10.000%, due 01/15/20 | 1,012,726 | 0.8 | ||||||||||||
865,000 | # | Foresight Energy LLC/Foresight Energy Corp., 9.625%, due 08/15/17 | 895,275 | 0.7 | ||||||||||||
1,140,000 | NRG Energy, Inc., 7.375%, due 02/01/16 | 1,175,625 | 1.0 | |||||||||||||
Other Securities | 2,187,828 | 1.8 | ||||||||||||||
5,655,332 | 4.7 | |||||||||||||||
Total Corporate Bonds/Notes (Cost $107,590,193) | 114,743,580 | 96.1 | ||||||||||||||
See Accompanying Notes to Financial Statements
50
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Shares | Value | Percent of Net Assets | ||||||||||||||
COMMON STOCK: 0.0% | ||||||||||||||||
Consumer Discretionary: 0.0% | ||||||||||||||||
5,810 | @, I, X | American Media Stock Certificates | $ | 6 | 0.0 | |||||||||||
Materials: 0.0% | ||||||||||||||||
Other Securities | 30,495 | 0.0 | ||||||||||||||
Telecommunication Services: 0.0% | ||||||||||||||||
Other Securities | 9,994 | 0.0 | ||||||||||||||
Total Common Stock (Cost $155,299) | 40,495 | 0.0 | ||||||||||||||
Total Long-Term Investments (Cost $107,745,492) | 114,784,075 | 96.1 | ||||||||||||||
SHORT-TERM INVESTMENTS: 3.3% | ||||||||||||||||
Affiliated Mutual Fund: 3.3% | ||||||||||||||||
3,908,000 | ING Institutional Prime Money Market Fund - Class I | 3,908,000 | 3.3 | |||||||||||||
Total Short-Term Investments (Cost $3,908,000) | 3,908,000 | 3.3 | ||||||||||||||
Total Investments in Securities (Cost $111,653,492)* | $ | 118,692,075 | 99.4 | |||||||||||||
Other Assets and Liabilities - Net | 656,976 | 0.6 | ||||||||||||||
Net Assets | $ | 119,349,051 | 100.0 | |||||||||||||
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of September 30, 2010.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
@ | Non-income producing security |
& | Payment-in-kind |
+ | Step-up basis bonds. Interest rates shown reflect current and next coupon rates. |
# | 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. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
I | Illiquid security |
X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
* | Cost for federal income tax purposes is $111,672,295. |
Net unrealized appreciation consists of: | ||||
Gross Unrealized Appreciation | $ | 7,898,354 | ||
Gross Unrealized Depreciation | (878,574 | ) | ||
Net Unrealized Appreciation | $ | 7,019,780 | ||
Fair Value Measurements^
The following is a summary of the fair valuations according to the inputs used as of September 30, 2010 in valuing the Fund’s assets and liabilities:
Quoted Prices in Active Markets for Identical Investments (Level 1) | Other Observable Inputs# (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at 9/30/2010 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Consumer Discretionary | $ | — | $ | — | $ | 6 | $ | 6 | ||||||||
Materials | — | 30,495 | — | 30,495 | ||||||||||||
Telecommunication Services | 9,994 | — | — | 9,994 | ||||||||||||
Total Common Stock | 9,994 | 30,495 | 6 | 40,495 | ||||||||||||
Corporate Bonds/Notes | — | 114,743,580 | — | 114,743,580 | ||||||||||||
Short-Term Investments | 3,908,000 | — | — | 3,908,000 | ||||||||||||
Total Investments, at value | $ | 3,917,994 | $ | 114,774,075 | $ | 6 | $ | 118,692,075 | ||||||||
See Accompanying Notes to Financial Statements
51
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ING HIGH YIELD BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended September 30, 2010:
Beginning Balance 3/31/2010 | Purchases | Sales | Accrued Discounts/ (Premiums) | Total Realized Gain/(Loss) | Total Unrealized Appreciation/ (Depreciation) | Transfers Into Level 3 | Transfers Out of Level 3 | Ending Balance 9/30/2010 | ||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||||||
Common Stock | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6 | ||||||||||||||||||
Total Investments, at value | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6 | ||||||||||||||||||
As of September 30, 2010, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
^ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
52
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: 36.3% | ||||||||||||||||
Consumer Discretionary: 5.5% | ||||||||||||||||
$ | 3,378,000 | S | Comcast Corp., 5.900% - 6.500%, due 03/15/16 - 11/15/17 | $ | 3,996,177 | 0.5 | ||||||||||
456,000 | #, S | COX Communications, Inc., 6.250%, due 06/01/18 | 526,540 | 0.2 | ||||||||||||
614,000 | #, S | COX Communications, Inc., 6.950%, due 06/01/38 | 719,650 | |||||||||||||
1,255,000 | # | Cox Enterprises, Inc., 7.375%, due 07/15/27 | 1,476,241 | 0.2 | ||||||||||||
2,975,000 | # | Hyatt Hotels Corp., 6.875%, due 08/15/19 | 3,314,915 | 0.4 | ||||||||||||
1,475,000 | # | NBC Universal, Inc., 2.875%, due 04/01/16 | 1,477,158 | 0.7 | ||||||||||||
517,000 | # | NBC Universal, Inc., 3.650%, due 04/30/15 | 546,297 | |||||||||||||
738,000 | # | NBC Universal, Inc., 4.375%, due 04/01/21 | 748,555 | |||||||||||||
1,419,000 | # | NBC Universal, Inc., 5.150%, due 04/30/20 | 1,535,331 | |||||||||||||
770,000 | # | NBC Universal, Inc., 5.950%, due 04/01/41 | 794,852 | |||||||||||||
498,000 | # | NBC Universal, Inc., 6.400%, due 04/30/40 | 544,114 | |||||||||||||
2,357,000 | S | News America, Inc., 6.150% - 6.650%, due 03/01/37 - 11/15/37 | 2,609,028 | 0.3 | ||||||||||||
805,000 | # | QVC, Inc., 7.500%, due 10/01/19 | 845,250 | 0.1 | ||||||||||||
3,579,000 | S | Time Warner, Inc., 7.700%, due 05/01/32 | 4,485,403 | 0.5 | ||||||||||||
Other Securities | 21,624,702 | 2.6 | ||||||||||||||
45,244,213 | 5.5 | |||||||||||||||
Consumer Staples: 2.1% | ||||||||||||||||
2,496,000 | S | Altria Group, Inc., 9.700%, due 11/10/18 | 3,383,677 | 0.4 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Consumer Staples: (continued) | ||||||||||||||||
$ | 576,000 | # | Anheuser-Busch InBev Worldwide, Inc., 5.375%, due 11/15/14 | $ | 647,133 | 0.1 | ||||||||||
1,732,000 | # | JBS Finance II Ltd., 8.250%, due 01/29/18 | 1,794,785 | 0.2 | ||||||||||||
2,020,000 | &, # | ServiceMaster Co, 10.750%, due 07/15/15 | 2,161,400 | 0.3 | ||||||||||||
1,550,000 | # | Smithfield Foods, Inc., 10.000%, due 07/15/14 | 1,790,250 | 0.2 | ||||||||||||
Other Securities | 7,536,839 | 0.9 | ||||||||||||||
17,314,084 | 2.1 | |||||||||||||||
Energy: 4.1% | ||||||||||||||||
300,000 | # | Consol Energy, Inc., 8.000%, due 04/01/17 | 326,250 | 0.1 | ||||||||||||
300,000 | # | Consol Energy, Inc., 8.250%, due 04/01/20 | 329,250 | |||||||||||||
1,800,000 | ±, I, X | Greater Ohio Ethanol, LLC, 6.301%, due 12/31/13 | — | 0.0 | ||||||||||||
2,200,000 | ±, I, X | Greater Ohio Ethanol, LLC, 12.630%, due 12/31/13 | — | |||||||||||||
993,000 | # | KazMunaiGaz Finance Sub BV, 7.000%, due 05/05/20 | 1,099,748 | 0.1 | ||||||||||||
277,964 | ±, I, X | PEA Lima, LLC, 0.000%, due 03/20/14 | — | 0.0 | ||||||||||||
1,769,000 | #, S | Petroleos Mexicanos, 6.625%, due 06/15/35 | 1,941,354 | 0.2 | ||||||||||||
Other Securities | 30,523,714 | 3.7 | ||||||||||||||
34,220,316 | 4.1 | |||||||||||||||
Financials: 12.3% | ||||||||||||||||
1,599,000 | #, L | Banco Bradesco S.A./Cayman Islands, 5.900%, due 01/16/21 | 1,630,980 | 0.2 |
See Accompanying Notes to Financial Statements
53
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Financials: (continued) | ||||||||||||||||
$ | 624,000 | # | Banco de Credito del Peru, 5.375%, due 09/16/20 | $ | 633,360 | 0.1 | ||||||||||
2,317,000 | #, S | Barclays Bank PLC, 6.050%, due 12/04/17 | 2,516,424 | 0.3 | ||||||||||||
6,178,000 | Citi Credit, 5.375%, due 04/11/11 | 8,553,036 | 1.0 | |||||||||||||
4,397,000 | S | Citigroup, Inc., 5.375% - 8.500%, due 01/15/15 - 08/09/20 | 4,910,503 | 0.6 | ||||||||||||
1,277,000 | #, S | Corestates Capital Trust I, 8.000%, due 12/15/26 | 1,317,514 | 0.2 | ||||||||||||
2,174,000 | # | Fibria Overseas Finance Ltd, 7.500%, due 05/04/20 | 2,318,028 | 0.3 | ||||||||||||
2,970,000 | S | Fifth Third Bancorp., 8.250%, due 03/01/38 | 3,541,764 | 0.4 | ||||||||||||
5,715,000 | S | Goldman Sachs Group, Inc., 3.700% - 6.250%, due 08/01/15 - 03/15/20 | 6,148,581 | 0.7 | ||||||||||||
3,071,000 | HSBC USA, Inc., 5.000%, due 09/27/20 | 3,074,630 | 0.4 | |||||||||||||
964,000 | # | Iberdrola Finance Ireland Ltd., 3.800%, due 09/11/14 | 991,241 | 0.5 | ||||||||||||
3,365,000 | # | Iberdrola Finance Ireland Ltd., 5.000%, due 09/11/19 | 3,366,800 | |||||||||||||
1,037,000 | # | International Lease Finance Corp., 7.125%, due 09/01/18 | 1,122,553 | 0.3 | ||||||||||||
1,778,000 | S | International Lease Finance Corp., 5.650% - 6.625%, due 11/15/13 - 06/01/14 | 1,763,060 | 0.1 | ||||||||||||
410,000 | # | LBI Escrow Corp., 8.000%, due 11/01/17 | 448,950 | |||||||||||||
3,013,000 | S | Morgan Stanley, 4.100% - 7.300%, due 01/26/15 - 05/13/19 | 3,294,286 | 0.4 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Financials: (continued) | ||||||||||||||||
$ | 2,425,000 | S | National City Preferred Capital Trust I, 12.000%, due 12/29/49 | $ | 2,701,625 | 0.3 | ||||||||||
19 | I | Nordea Kredit Realkreditaktieselskab, 6.000%, due 07/01/29 | 4 | 0.0 | ||||||||||||
1,729,000 | # | Pacific Life Insurance Co., 9.250%, due 06/15/39 | 2,210,613 | 0.3 | ||||||||||||
134,016 | #, S | Power Receivable Finance, LLC, 6.290%, due 01/01/12 | 134,059 | 0.0 | ||||||||||||
3,121,000 | S | Protective Life Corp., 8.450%, due 10/15/39 | 3,431,374 | 0.4 | ||||||||||||
1,660,000 | # | Rabobank, 11.000%, due 12/29/49 | 2,164,389 | 0.3 | ||||||||||||
805,000 | # | Reynolds Group DL Escrow, Inc./Reynolds Group Escrow LLC, 7.750%, due 10/15/16 | 823,113 | 0.1 | ||||||||||||
1,583,000 |
| ±, S, I, X |
| Twin Reefs Pass-through Trust, 0.000%, due 12/10/49 | — | 0.0 | ||||||||||
1,176,000 | # | Voto-Votorantim Ltd, 6.750%, due 04/05/21 | 1,246,560 | 0.2 | ||||||||||||
881,000 | # | Xstrata Finance Canada Ltd, 5.500%, due 11/16/11 | 923,373 | 0.1 | ||||||||||||
Other Securities | 42,485,322 | 5.1 | ||||||||||||||
101,752,142 | 12.3 | |||||||||||||||
Health Care: 0.6% | ||||||||||||||||
Other Securities | 5,120,841 | 0.6 | ||||||||||||||
Industrials: 1.2% | ||||||||||||||||
900,000 | # | Bombardier, Inc., 7.500%, due 03/15/18 | 972,000 | 0.2 |
See Accompanying Notes to Financial Statements
54
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Industrials: (continued) | ||||||||||||||||
$ | 900,000 | # | Bombardier, Inc., 7.750%, due 03/15/20 | $ | 976,500 | 0.3 | ||||||||||
2,321,000 | S | General Electric Co., 5.250%, due 12/06/17 | 2,616,236 | |||||||||||||
754,000 | # | Kazatomprom, 6.250%, due 05/20/15 | 818,090 | 0.1 | ||||||||||||
2,560,000 | S | RR Donnelley & Sons Co., 7.625% - 8.600%, due 08/15/16 - 06/15/20 | 2,899,416 | 0.4 | ||||||||||||
Other Securities | 1,364,063 | 0.2 | ||||||||||||||
9,646,305 | 1.2 | |||||||||||||||
Information Technology: 1.5% | ||||||||||||||||
595,000 | # | Expedia, Inc., 5.950%, due 08/15/20 | 604,669 | 0.1 | ||||||||||||
1,863,000 | # | Oracle Corp., 5.375%, due 07/15/40 | 2,011,492 | 0.3 | ||||||||||||
Other Securities | 9,431,218 | 1.1 | ||||||||||||||
12,047,379 | 1.5 | |||||||||||||||
Materials: 3.3% | ||||||||||||||||
2,481,000 | S | ArcelorMittal, 9.850%, due 06/01/19 | 3,193,781 | 0.6 | ||||||||||||
2,063,000 | S | ArcelorMittal, 5.250% - 7.000%, due 10/15/39 - 08/05/20 | 2,111,324 | 0.3 | ||||||||||||
702,000 | # | Chevron Phillips Chemical Co. LLC, 7.000%, due 06/15/14 | 812,525 | |||||||||||||
1,109,000 | # | Chevron Phillips Chemical Co. LLC, 8.250%, due 06/15/19 | 1,405,856 | 0.2 | ||||||||||||
1,191,000 | # | Gerdau Trade, Inc., 5.750%, due 01/30/21 | 1,212,882 | |||||||||||||
1,085,000 | # | Inversiones CMPC S.A., 6.125%, due 11/05/19 | 1,191,569 | 0.2 | ||||||||||||
2,356,000 | S | Teck Resources Ltd., 6.000% - 10.250%, due 08/15/40 - 05/15/16 | 2,799,243 | 0.3 | ||||||||||||
Other Securities | 14,115,097 | 1.7 | ||||||||||||||
26,842,277 | 3.3 | |||||||||||||||
Telecommunication Services: 2.3% | ||||||||||||||||
3,510,000 | S | AT&T, Inc., 2.500%, due 08/15/15 | 3,580,718 | 0.6 | ||||||||||||
1,576,000 | S | AT&T, Inc., 6.550%, due 02/15/39 | 1,839,225 | 0.2 | ||||||||||||
1,949,000 | # | Intelsat Subsidiary Holding Co., Ltd., 8.875%, due 01/15/15 | 2,017,215 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||||||
Telecommunication Services: (continued) | ||||||||||||||||
$ | 1,015,000 | # | Qwest Communications International, Inc., 7.125%, due 04/01/18 | $ | 1,070,825 | 0.3 | ||||||||||
1,054,000 | S | Qwest Communications International, Inc., 7.500%, due 02/15/14 | 1,080,350 | |||||||||||||
1,270,000 | #, L | Windstream Corp., 8.125%, due 09/01/18 | 1,320,800 | 0.2 | ||||||||||||
Other Securities | 8,219,623 | 1.0 | ||||||||||||||
19,128,756 | 2.3 | |||||||||||||||
Utilities: 3.4% | ||||||||||||||||
1,467,000 | # | Allegheny Energy Supply Co. LLC, 5.750%, due 10/15/19 | 1,520,029 | 0.2 | ||||||||||||
1,249,000 | # | Duquesne Light Holdings, Inc., 6.400%, due 09/15/20 | 1,272,659 | 0.2 | ||||||||||||
1,189,000 | # | EDP Finance BV, 4.900%, due 10/01/19 | 1,138,765 | 0.3 | ||||||||||||
991,000 | # | EDP Finance BV, 6.000%, due 02/02/18 | 1,020,936 | 0.2 | ||||||||||||
1,660,000 | # | Enel Finance International S.A., 6.000%, due 10/07/39 | 1,722,298 | |||||||||||||
995,000 | # | Enel Finance International S.A., 6.250%, due 09/15/17 | 1,130,066 | 0.1 | ||||||||||||
289,515 | #, S | Juniper Generation, LLC, 6.790%, due 12/31/14 | 273,559 | 0.0 | ||||||||||||
2,275,000 | S | Sempra Energy, 6.500%, due 06/01/16 | 2,725,243 | 0.3 | ||||||||||||
Other Securities | 17,457,363 | 2.1 | ||||||||||||||
28,260,918 | 3.4 | |||||||||||||||
Total Corporate Bonds/Notes (Cost $275,181,791) | 299,577,231 | 36.3 | ||||||||||||||
See Accompanying Notes to Financial Statements
55
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS: 19.4% | ||||||||||||||||
Federal Home Loan Mortgage Corporation##: 8.9% | ||||||||||||||||
$ | 5,841,000 | W | 4.500%, due 10/15/35 | $ | 6,075,551 | 8.9 | ||||||||||
3,311,702 | S, ^ | 4.888%, due 03/15/33 | 3,621,416 | |||||||||||||
12,602,563 | S | 5.000%, due 09/15/31 -12/15/17 | 13,278,306 | |||||||||||||
30,770,762 | S | 5.500%, due 07/15/32 -11/15/22 | 32,678,629 | |||||||||||||
4,039,680 | S | 6.000%, due 07/15/32 -01/15/29 | 4,392,919 | |||||||||||||
4,500,000 | W | 6.500%, due 11/15/34 | 4,891,644 | |||||||||||||
28,187,118 | W, S, ^ | 0.607% - 7.500%, due 11/01/31 -11/01/28 | 8,210,695 | |||||||||||||
73,149,160 | 8.9 | |||||||||||||||
Federal National Mortgage Association##: 9.0% | ||||||||||||||||
7,992,000 | W | 4.000%, due 07/25/39 | 8,216,775 | 9.0 | ||||||||||||
19,626,000 | W | 4.500%, due 10/15/35 -10/15/18 | 20,462,724 | |||||||||||||
3,758,695 | 4.500%, due 09/01/40 | 3,919,655 | ||||||||||||||
11,749,023 | S | 5.000%, due 05/25/32 -02/25/29 | 12,428,741 | |||||||||||||
4,659,020 | S | 5.500%, due 05/25/30 -02/01/18 | 5,004,454 | |||||||||||||
9,033,315 | S | 6.000%, due 04/25/31 -07/25/29 | 9,914,449 | |||||||||||||
23,792,213 | S, ^ | 6.494%, due 10/25/35 | 3,855,607 | |||||||||||||
32,994,531 | W, S, ^ | 0.657% -27.575%, due 01/01/30 -02/17/29 | 10,732,036 | |||||||||||||
74,534,441 | 9.0 | |||||||||||||||
Government National Mortgage Association: 1.5% | ||||||||||||||||
32,979,233 | S, ^ | 5.000%, due 04/20/38 -06/16/39 | 3,422,094 | 1.5 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS: (continued) | ||||||||||||||||
Government National Mortgage Association: (continued) | ||||||||||||||||
$ | 63,383,180 | S, ^ | 3.375% - 7.993%, due 11/15/30 -06/15/29 | $ | 9,061,056 | |||||||||||
12,483,150 | 1.5 | |||||||||||||||
Total U.S. Government Agency Obligations (Cost $149,317,285) | 160,166,751 | 19.4 | ||||||||||||||
U.S. TREASURY OBLIGATIONS: 24.8% | ||||||||||||||||
U.S. Treasury Notes: 24.8% | ||||||||||||||||
8,261,000 | L | 0.375%, due 08/31/12 | 8,256,159 | 24.8 | ||||||||||||
20,859,000 | 0.750%, due 09/15/13 | 20,930,713 | ||||||||||||||
15,192,000 | L | 1.250%, due 08/31/15 | 15,189,630 | |||||||||||||
15,486,000 | 2.500%, due 04/30/15 | 16,420,007 | ||||||||||||||
69,338,000 | S | 2.625%, due 08/15/20 | 69,998,860 | |||||||||||||
15,323,000 | 3.375%, due 11/15/19 | 16,509,337 | ||||||||||||||
50,251,000 | 4.375%, due 05/15/40 | 56,446,295 | ||||||||||||||
998,000 | 1.875%, due 08/31/17 | 997,298 | ||||||||||||||
Total U.S. Treasury Obligations (Cost $203,534,520) | 204,748,299 | 24.8 | ||||||||||||||
ASSET-BACKED SECURITIES: 7.6% | ||||||||||||||||
Automobile Asset-Backed Securities: 2.0% | ||||||||||||||||
1,501,000 | #, S | Bank of America Auto Trust, 3.520%, due 06/15/16 | 1,572,832 | 0.2 | ||||||||||||
3,884,000 | S | CarMax Auto Owner Trust, 2.400% - 5.810%, due 12/16/13 -04/15/15 | 4,114,740 | 0.5 |
See Accompanying Notes to Financial Statements
56
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
ASSET-BACKED SECURITIES: (continued) | ||||||||||||||||
Automobile Asset-Backed Securities: (continued) | ||||||||||||||||
$ | 1,710,000 | # | Chrysler Financial Auto Securitization Trust, 5.570%, due 08/08/14 | $ | 1,789,860 | 0.9 | ||||||||||
2,038,000 | # | Chrysler Financial Auto Securitization Trust, 6.250%, due 05/08/14 | 2,149,487 | |||||||||||||
3,394,000 | # | Chrysler Financial Auto Securitization Trust, 6.540%, due 11/10/14 | 3,550,635 | |||||||||||||
Other Securities | 3,243,473 | 0.4 | ||||||||||||||
16,421,027 | 2.0 | |||||||||||||||
Credit Card Asset-Backed Securities: 4.2% | ||||||||||||||||
5,442,000 | Capital One Multi-Asset Execution Trust, 0.547%, due 03/17/14 | 5,394,673 | 1.4 | |||||||||||||
3,400,000 | Capital One Multi-Asset Execution Trust, 5.050%, due 12/17/18 | 3,886,208 | ||||||||||||||
1,954,000 | Capital One Multi-Asset Execution Trust, 5.050% - 5.750%, due 02/15/16 - 07/15/20 | 2,291,475 | ||||||||||||||
3,281,000 | Citibank Credit Card Issuance Trust, 0.907%, due 07/15/13 | 3,250,500 | 1.6 | |||||||||||||
4,273,000 | Citibank Credit Card Issuance Trust, 6.300%, due 06/20/14 | 4,548,071 | ||||||||||||||
4,917,000 | Citibank Credit Card Issuance Trust, 6.950%, due 02/18/14 | 5,220,160 | ||||||||||||||
100,000 | Citibank Credit Card Issuance Trust, 4.850%, due 04/22/15 | 109,743 | ||||||||||||||
2,377,000 | S | Discover Card Master Trust, 5.650%, due 12/15/15 - 03/16/20 | 2,791,099 | 0.3 | ||||||||||||
3,380,000 | MBNA Credit Card Master Note Trust, 6.800%, due 07/15/14 | 3,596,185 | 0.7 | |||||||||||||
1,564,000 | MBNA Credit Card Master Note Trust, 1.607% - 5.600%, due 07/17/14 - 10/15/14 | 2,099,324 | ||||||||||||||
1,021,000 | # | MBNA Master Credit Card Trust, 7.100%, due 09/15/13 | 1,050,070 | 0.1 | ||||||||||||
Other Securities | 451,171 | 0.1 | ||||||||||||||
34,688,679 | 4.2 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
ASSET-BACKED SECURITIES: (continued) | ||||||||||||||||
Home Equity Asset-Backed Securities: 0.1% | ||||||||||||||||
Other Securities | $ | 379,895 | 0.1 | |||||||||||||
Other Asset-Backed Securities: 1.3% | ||||||||||||||||
$ | 2,084,658 | # | Atrium CDO Corp., 0.634%, due 10/27/16 | 1,964,790 | 0.2 | |||||||||||
1,400,000 | #, S | Carlyle High Yield Partners, 0.774%, due 08/11/16 | 1,323,000 | 0.1 | ||||||||||||
1,575,000 | #, S | Credit-Based Asset Servicing and Securitization, LLC, 5.746%, due 12/25/37 | 1,577,607 | 0.6 | ||||||||||||
1,188,000 | #, S | Credit-Based Asset Servicing and Securitization, LLC, 6.020%, due 12/25/37 | 1,051,330 | |||||||||||||
2,558,058 | S | Credit-Based Asset Servicing and Securitization, LLC, 4.831% - 5.501%, due 08/25/35 - 12/25/36 | 2,252,505 | |||||||||||||
1,436,198 | # | GSC Partners CDO Fund Ltd., 0.725%, due 11/20/16 | 1,350,026 | 0.2 | ||||||||||||
Other Securities | 1,382,913 | 0.2 | ||||||||||||||
10,902,171 | 1.3 | |||||||||||||||
Total Asset-Backed Securities (Cost $62,294,745) | 62,391,772 | 7.6 | ||||||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS: 12.2% | ||||||||||||||||
4,618,802 | S | Banc of America Commercial Mortgage, Inc., 4.161% - 5.596%, due 06/10/39 - 09/10/47 | 4,943,421 | 0.6 | ||||||||||||
3,652,359 | #, S | Banc of America Funding Corp., 5.250%, due 08/26/35 | 3,840,169 | 0.5 | ||||||||||||
2,682,000 | S | Citigroup Commercial Mortgage Trust, 5.887%, due 12/10/49 | 2,876,536 | 0.3 | ||||||||||||
3,948,764 | #, S | Citigroup Mortgage Loan Trust, Inc., 18.957%, due 10/25/35 | 4,366,095 | 0.5 |
See Accompanying Notes to Financial Statements
57
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) | ||||||||||||||||
$ | 5,619,587 | #, ^ | Citigroup/Deutsche Bank Commercial Mortgage Trust, 0.118%, due 12/11/49 | $ | 48,856 | 0.0 | ||||||||||
3,430,000 | # | Commercial Mortgage Pass-Through Certificates, 5.449%, due 02/05/19 | 3,461,440 | 1.1 | ||||||||||||
2,065,000 | #, S | Commercial Mortgage Pass-through Certificates, 0.757%, due 07/16/34 | 2,017,380 | |||||||||||||
2,960,000 | S | Commercial Mortgage Pass-through Certificates, 4.715% - 6.009%, due 03/10/39 -12/10/49 | 3,197,261 | |||||||||||||
67,223,744 | #, ^ | Credit Suisse First Boston Mortgage Securities Corp., 0.196%, due 02/15/38 | 670,543 | 0.1 | ||||||||||||
540,520 | S | Credit Suisse First Boston Mortgage Securities Corp., 3.727% - 6.133%, due 03/15/35 -04/15/37 | 561,942 | |||||||||||||
132,960,015 | #, ^ | Credit Suisse Mortgage Capital Certificates, 0.128%, due 09/15/40 | 874,903 | 0.3 | ||||||||||||
1,430,000 | # | Credit Suisse Mortgage Capital Certificates, 5.342%, due 12/15/43 | 1,536,355 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) | ||||||||||||||||
$ | 77,257,479 | #, S, ^ | Greenwich Capital Commercial Funding Corp., 0.108%, due 12/10/49 | $ | 630,753 | 1.9 | ||||||||||
96,635,890 | #, ^ | Greenwich Capital Commercial Funding Corp., 0.509%, due 03/10/39 | 1,401,655 | |||||||||||||
3,120,000 | S | Greenwich Capital Commercial Funding Corp., 5.444%, due 03/10/39 | 3,294,647 | |||||||||||||
2,790,000 | S | Greenwich Capital Commercial Funding Corp., 5.700%, due 12/10/49 | 3,029,394 | |||||||||||||
7,015,000 | S | Greenwich Capital Commercial Funding Corp., 5.224% - 6.080%, due 04/10/37 -12/10/49 | 7,168,474 | |||||||||||||
1,500,000 | #, S | GS Mortgage Securities Corp. II, 5.374%, due 05/17/45 | 1,665,377 | 0.3 | ||||||||||||
830,000 | # | GS Mortgage Securities Corp. II, 6.055%, due 07/12/38 | 860,968 | |||||||||||||
3,700,000 | S | J.P. Morgan Chase Commercial Mortgage Securities Corp., 5.399%, due 05/15/45 | 3,991,659 | 1.2 | ||||||||||||
262,431,037 | S, ^ | J.P. Morgan Chase Commercial Mortgage Securities Corp., 0.273% - 5.420%, due 01/12/37 -02/15/51 | 5,896,803 |
See Accompanying Notes to Financial Statements
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) | ||||||||||||||||
$ | 43,002,830 | #, ^ | LB-UBS Commercial Mortgage Trust, 0.181%, due 09/15/39 | $ | 774,060 | 1.6 | ||||||||||
61,233,631 | #, ^ | LB-UBS Commercial Mortgage Trust, 0.910%, due 11/15/38 | 1,720,861 | |||||||||||||
2,980,000 | LB-UBS Commercial Mortgage Trust, 6.080%, due 06/15/38 | 3,288,245 | ||||||||||||||
29,605,897 | S, ^ | LB-UBS Commercial Mortgage Trust, 0.339% - 5.436%, due 11/15/30 -06/15/29 | 7,759,499 | |||||||||||||
52,341,621 | #, ^ | Merrill Lynch Mortgage Trust, 0.704%, due 02/12/51 | 1,198,670 | 0.3 | ||||||||||||
1,090,000 | S | Merrill Lynch Mortgage Trust, 4.747%, due 06/12/43 | 1,177,429 | |||||||||||||
610,000 | # | Morgan Stanley Dean Witter Capital I, 7.206%, due 10/15/35 | 616,103 | 0.1 | ||||||||||||
16,559,580 | #, ^ | RBSCF Trust, 1.151%, due 04/15/24 | 562,512 | 0.2 | ||||||||||||
1,710,000 | # | RBSCF Trust, 5.420%, due 01/19/49 | 1,444,980 | |||||||||||||
2,100,000 | # | Vornado DP LLC, 5.280%, due 09/13/28 | 2,164,836 | 0.5 | ||||||||||||
1,590,000 | # | Vornado DP LLC, 6.356%, due 09/13/28 | 1,643,292 | |||||||||||||
2,620,000 | S | Wachovia Bank Commercial Mortgage Trust, 5.308% - 5.342%, due 12/15/43 -11/15/48 | 2,687,065 | 0.3 |
Principal Amount | Value | Percent of Net Assets | ||||||||||||||
$ | 3,255,590 | S | Washington Mutual Mortgage Pass-Through Certificates, 5.140%, due 01/25/36 | $ | 3,041,209 | 0.5 | ||||||||||
1,417,588 | S | Washington Mutual Mortgage Pass-Through Certificates, 6.000%, due 06/25/34 | 1,478,586 | |||||||||||||
3,148,969 | Wells Fargo Mortgage-Backed Securities Trust, 2.893%, due 06/25/35 | 3,030,449 | 0.4 | |||||||||||||
61,832 | Wells Fargo Mortgage-Backed Securities Trust, 4.857%, due 08/25/34 | 63,722 | ||||||||||||||
Other Securities | 12,228,914 | 1.5 | ||||||||||||||
Total Collateralized Mortgage Obligations (Cost $95,624,561) | 101,215,063 | 12.2 | ||||||||||||||
MUNICIPAL BONDS: 0.3% | ||||||||||||||||
Louisiana: 0.3% | ||||||||||||||||
Other Securities | 2,525,290 | 0.3 | ||||||||||||||
Total Municipal Bonds (Cost $2,422,439) | 2,525,290 | 0.3 | ||||||||||||||
OTHER BONDS: 2.6% | ||||||||||||||||
Foreign Government Bonds: 2.6% | ||||||||||||||||
BRL 37,354,000 | Brazil Notas do Tesouro Nacional Series F, 10.000%, due 01/01/14 | 21,516,522 | 2.6 | |||||||||||||
Total Other Bonds (Cost $20,386,575) | 21,516,522 | 2.6 |
See Accompanying Notes to Financial Statements
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Shares | Value | Percent of Net Assets | ||||||||||||||
PREFERRED STOCK: 0.2% | ||||||||||||||||
Financials: 0.2% | ||||||||||||||||
Other Securities | $ | 1,882,373 | 0.2 | |||||||||||||
Total Preferred Stock (Cost $1,781,875) | 1,882,373 | 0.2 | ||||||||||||||
Total Long-Term Investments (Cost $810,543,791) | 854,023,301 | 103.4 | ||||||||||||||
SHORT-TERM INVESTMENTS: 2.8% | ||||||||||||||||
Affiliated Mutual Fund: 0.4% | ||||||||||||||||
3,312,000 | ING Institutional Prime Money Market Fund - Class I | 3,312,000 | 0.4 | |||||||||||||
Total Mutual Fund (Cost $3,312,000) | 3,312,000 | 0.4 | ||||||||||||||
Principal Amount | ||||||||||||||||
Securities Lending Collateralcc: 2.4% | ||||||||||||||||
$ | 16,994,670 | BNY Mellon Overnight Government Fund(1) | 16,994,670 | 2.1 | ||||||||||||
3,329,856 | I | BNY Institutional Cash Reserves Fund, Series B(1)(2) | 2,663,885 | 0.3 | ||||||||||||
Total Securities Lending Collateral (Cost $20,324,526) | 19,658,555 | 2.4 | ||||||||||||||
Total Short-Term Investments (Cost $23,636,526) | 22,970,555 | 2.8 | ||||||||||||||
Total Investments in Securities (Cost $834,180,317)* | $ | 876,993,856 | 106.2 | |||||||||||||
Other Assets and Liabilities - Net | (50,905,194 | ) | (6.2 | ) | ||||||||||||
Net Assets | $ | 826,088,662 | 100.0 | |||||||||||||
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of September 30, 2010.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
& | Payment-in-kind |
# | 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. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
cc | Securities purchased with cash collateral for securities loaned. |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being fair valued daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. |
## | 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. |
S | All or a portion of this security has been identified by the Fund to cover future collateral requirements for applicable futures, options, swaps, foreign currency contracts and/or when-issued or delayed-delivery securities. |
I | Illiquid security |
L | Loaned security, a portion or all of the security is on loan at September 30, 2010. |
± | Defaulted security |
X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
^ | 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. |
BRL | Brazilian Real |
* | Cost for federal income tax purposes is $834,737,089. |
Net unrealized appreciation consists of: | ||||
Gross Unrealized Appreciation | $ | 52,613,924 | ||
Gross Unrealized Depreciation | (10,357,157 | ) | ||
Net Unrealized Appreciation | $ | 42,256,767 | ||
See Accompanying Notes to Financial Statements
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Fair Value Measurements^
The following is a summary of the fair valuations according to the inputs used as of September 30, 2010 in valuing the Fund’s assets and liabilities:
Quoted Prices in Active Markets for Identical Investments (Level 1) | Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at 9/30/2010 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Preferred Stock | $ | — | $ | 1,882,373 | $ | — | $ | 1,882,373 | ||||||||
Corporate Bonds/Notes | — | 299,577,231 | — | 299,577,231 | ||||||||||||
U.S. Government Agency Obligations | — | 160,166,751 | — | 160,166,751 | ||||||||||||
U.S. Treasury Obligations | — | 204,748,299 | — | 204,748,299 | ||||||||||||
Asset-Backed Securities | — | 57,753,956 | 4,637,816 | 62,391,772 | ||||||||||||
Collateralized Mortgage Obligations | — | 101,215,063 | — | 101,215,063 | ||||||||||||
Municipal Bonds | — | 2,525,290 | — | 2,525,290 | ||||||||||||
Other Bonds | — | 21,516,522 | — | 21,516,522 | ||||||||||||
Short-Term Investments | 20,306,670 | — | 2,663,885 | 22,970,555 | ||||||||||||
Total Investments, at value | $ | 20,306,670 | $ | 849,385,485 | $ | 7,301,701 | $ | 876,993,856 | ||||||||
Other Financial Instruments+: | ||||||||||||||||
Futures | 891,717 | — | — | 891,717 | ||||||||||||
Swaps, at value | — | 537,658 | — | 537,658 | ||||||||||||
Total Assets | $ | 21,198,387 | $ | 849,923,143 | $ | 7,301,701 | $ | 878,423,231 | ||||||||
Liabilities Table | ||||||||||||||||
Other Financial Instruments+: | ||||||||||||||||
Forward foreign currency contracts | $ | — | $ | (1,484,285 | ) | $ | — | $ | (1,484,285 | ) | ||||||
Futures | (357,394 | ) | — | — | (357,394 | ) | ||||||||||
Swaps, at value | — | (4,639,780 | ) | — | (4,639,780 | ) | ||||||||||
Written options | — | (554,133 | ) | — | (554,133 | ) | ||||||||||
Total Liabilities | $ | (357,394 | ) | $ | (6,678,198 | ) | $ | — | $ | (7,035,592 | ) | |||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended September 30, 2010:
Beginning Balance 3/31/2010 | Purchases | Sales | Accrued Discounts/ (Premiums) | Total Realized Gain/(Loss) | Total Unrealized Appreciation/ (Depreciation) | Transfers Into Level 3 | Transfers Out of Level 3 | Ending Balance 9/30/2010 | ||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||||||
Corporate Bonds/Notes | $ | 512,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (512,000 | ) | $ | — | |||||||||||||||||
Asset-Backed Securities | 13,857 | 3,427,716 | (169,864 | ) | 4,331 | (2,714,175 | ) | 2,752,951 | 1,323,000 | — | 4,637,816 | |||||||||||||||||||||||||
Collateralized Mortgage Obligations | 15,747,247 | — | (4,578,878 | ) | — | 76,376 | (59,095 | ) | — | (11,185,650 | ) | — | ||||||||||||||||||||||||
Other Bonds | 4,614,962 | — | (4,628,742 | ) | — | 113,742 | (99,962 | ) | — | — | — | |||||||||||||||||||||||||
Short-Term Investments | 2,663,885 | — | — | — | — | — | — | — | 2,663,885 | |||||||||||||||||||||||||||
Total Investments, at value | $ | 23,551,951 | $ | 3,427,716 | $ | (9,377,484 | ) | $ | 4,331 | $ | (2,524,056 | ) | $ | 2,593,894 | $ | 1,323,000 | $ | (11,697,650 | ) | $ | 7,301,701 | |||||||||||||||
As of September 30, 2010, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $22,958.
^ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
+ | Other Financial Instruments are derivatives not reflected in the Summary Portfolio of Investments and may include open forward foreign currency contracts, futures, swaps, and written options. |
Forward foreign currency contracts and futures are reported at their unrealized gain/loss at measurement date which represents the amount due to/from the Fund. Swaps and written options are reported at their market value at measurement date.
See Accompanying Notes to Financial Statements
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. The Fund’s policy is to recognize transfers between levels at the end of the reporting period.
At September 30, 2010 the following forward foreign currency contracts were outstanding for the ING Intermediate Bond Fund:
Counterparty | Currency | Buy/Sell | Settlement Date | In Exchange For | Fair Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
USD | ||||||||||||||||||||||||
The Bank of New York Mellon | EU Euro | |||||||||||||||||||||||
EUR | 1,380,977 | SELL | 10/22/10 | $1,794,364 | $ | 1,882,319 | $ | (87,955 | ) | |||||||||||||||
JPMorgan Chase | EU Euro | |||||||||||||||||||||||
EUR | 6,423,181 | SELL | 10/22/10 | 8,278,105 | 8,755,015 | (476,910 | ) | |||||||||||||||||
Morgan Stanley | EU Euro | |||||||||||||||||||||||
EUR | 6,429,594 | SELL | 10/8/10 | 8,181,215 | 8,764,649 | (583,434 | ) | |||||||||||||||||
Morgan Stanley | Brazilian Real | |||||||||||||||||||||||
BRL | 36,160,661 | SELL | 10/22/10 | 20,934,789 | 21,270,775 | (335,986 | ) | |||||||||||||||||
$ | (1,484,285 | ) | ||||||||||||||||||||||
ING Intermediate Bond Fund Open Futures Contracts on September 30, 2010:
Contract Description | Number of Contracts | Expiration Date | Notional Value | Unrealized Appreciation/ | ||||||||||||
Long Contracts | ||||||||||||||||
U.S. Treasury 5-Year Note | 642 | 12/31/10 | $ | 77,596,736 | $ | 588,976 | ||||||||||
U.S. Treasury 10-Year Note | 100 | 12/21/10 | 12,604,688 | 90,375 | ||||||||||||
U.S. Treasury Ultra Long Bond | 32 | 12/21/10 | 4,521,000 | (85,580 | ) | |||||||||||
$ | 94,722,424 | $ | 593,771 | |||||||||||||
Short Contracts | ||||||||||||||||
U.S. Treasury 2-Year Note | 780 | 12/31/10 | $ | 171,197,816 | $ | (271,814 | ) | |||||||||
U.S. Treasury Long Bond | 516 | 12/21/10 | 68,998,875 | 212,366 | ||||||||||||
$ | 240,196,691 | $ | (59,448 | ) | ||||||||||||
ING Intermediate Bond Fund Credit Default Swap Agreements Outstanding on September 30, 2010:
Credit Default Swaps on Corporate and Sovereign Issues - Buy Protection (1)
Counterparty | Reference Entity/ Obligation | Buy/Sell | (Pay)/ | Termination Date | Notional | Fair | Upfront | Unrealized | ||||||||||||||||||||||
Citigroup, Inc. | MBIA Inc. 6.625%, 10/01/28 | Buy | (5.000 | ) | 09/20/13 | USD | 640,000 | $ | 45,708 | $ | 128,593 | $ | (82,885 | ) | ||||||||||||||||
Citigroup, Inc. | MBIA Inc. 6.625%, 10/01/28 | Buy | (5.000 | ) | 09/20/13 | USD | 1,311,000 | 93,630 | 252,811 | (159,181 | ) | |||||||||||||||||||
JPMorgan Chase & Co. | MBIA Inc. 6.625%, 10/01/28 | Buy | (5.000 | ) | 09/20/13 | USD | 5,079,000 | 362,734 | 533,008 | (170,274 | ) | |||||||||||||||||||
$ | 502,072 | $ | 914,412 | $ | (412,340 | ) | ||||||||||||||||||||||||
Credit Default Swaps on Credit Indices - Buy Protection (1)
Counterparty | Reference Entity/ Obligation | Buy/Sell | (Pay)/ | Termination Date | Notional | Fair | Upfront | Unrealized | ||||||||||||||||||||||
Goldman Sachs & Co. | CDX.NA.IG.14 Index | Buy | (1.000 | ) | 06/20/15 | USD | 5,612,000 | $ | 4,497 | $ | 57,688 | $ | (53,191 | ) | ||||||||||||||||
Morgan Stanley | CDX.NA.IG.14 Index | Buy | (1.000 | ) | 06/20/15 | USD | 38,803,000 | 31,089 | 377,843 | (346,754 | ) | |||||||||||||||||||
$ | 35,586 | $ | 435,531 | $ | (399,945 | ) | ||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Credit Default Swaps on Corporate and Sovereign Issues - Sell Protection (2)
Counterparty | Reference Entity/ Obligation | Buy/Sell | (Pay)/ | Termination Date | Implied Credit Spread at 09/30/10 (%)(3) | Notional | Fair | Upfront | Unrealized | |||||||||||||||||||||||||
Citigroup, Inc. | MBIA Global Funding LLC, FRN, 10/06/10 | Sell | 5.000 | 09/20/13 | 35.499 | USD | 1,311,000 | $ | (674,772 | ) | $ | (319,732 | ) | $ | (355,040 | ) | ||||||||||||||||||
Citigroup, Inc. | MBIA Global Funding LLC, FRN, 10/06/10 | Sell | 5.000 | 09/20/13 | 35.499 | USD | 641,000 | (329,923 | ) | (143,306 | ) | (186,617 | ) | |||||||||||||||||||||
Goldman Sachs & Co. | MBIA Global Funding LLC, FRN, 10/06/10 | Sell | 5.000 | 09/20/13 | 35.499 | USD | 1,271,000 | (654,183 | ) | (280,555 | ) | (373,628 | ) | |||||||||||||||||||||
JPMorgan Chase & Co. | MBIA Global Funding LLC, FRN, 10/06/10 | Sell | 5.000 | 09/20/13 | 35.499 | USD | 2,540,000 | (1,307,338 | ) | (281,365 | ) | (1,025,973 | ) | |||||||||||||||||||||
$ | (2,966,216 | ) | $ | (1,024,958 | ) | $ | (1,941,258 | ) | ||||||||||||||||||||||||||
(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 1.) 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 2.) 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) | 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 1.) 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 2.) 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. |
(3) | 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 fair 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. |
(4) | 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. |
(5) | 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. |
ING Intermediate Bond Fund Interest Rate Swap Agreement Outstanding on September 30, 2010:
Termination Date | Notional | Fair | Upfront Payment | Unrealized | ||||||||||||||||||||
Pay a fixed rate equal to 3.478% and receive a floating rate based on the 3-month USD-LIBOR Counterparty: Citigroup, Inc. | 05/11/20 | USD | 19,944,000 | $ | (1,673,564 | ) | $ | — | $ | (1,673,564 | ) | |||||||||||||
$ | (1,673,564 | ) | $ | — | $ | (1,673,564 | ) | |||||||||||||||||
ING Intermediate Bond Fund Written Swaptions Open on September 30, 2010:
Written Interest Rate Swaptions
Description | Counterparty | Floating Rate Index | Pay/Receive Floating | Exercise Rate | Expiration Date | Notional Amount | Premium Received | Fair Value | ||||||||||||||||
Call OTC Swaption | Citigroup, Inc. | 3-month USD-LIBOR-BBA | Pay | 2.248% | 09/21/11 | 36,815,000 | $ | 708,689 | $ | (554,133 | ) | |||||||||||||
$ | 708,689 | $ | (554,133 | ) | ||||||||||||||||||||
See Accompanying Notes to Financial Statements
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ING INTERMEDIATE BOND FUND | SUMMARY PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of September 30, 2010 was as follows:
Derivatives not accounted for as hedging | Location on Statement of Assets and Liabilities | Fair Value | ||||||
Asset Derivatives | ||||||||
Credit contracts | Swaps, at fair value | $ | 537,658 | |||||
Interest rate contracts | Net Assets - Unrealized appreciation* | 891,717 | ||||||
Total Asset Derivatives | $ | 1,429,375 | ||||||
Liability Derivatives | ||||||||
Credit contracts | Swaps, at fair value | $ | 2,966,216 | |||||
Foreign exchange contracts | | Unrealized depreciation on forward foreign currency contracts | | 1,484,285 | ||||
Interest rate contracts | Swaps, at fair value | 1,673,564 | ||||||
Interest rate contracts | Net Assets - Unrealized depreciation* | 357,394 | ||||||
Interest rate contracts | Written options, at fair value | 554,133 | ||||||
Total Liability Derivatives | $ | 7,035,592 | ||||||
* | Includes cumulative appreciation/depreciation of futures contracts as reported in the table following the Portfolio of Investments. |
The effect of derivative instruments on the Fund’s Statement of Operations for the six months ended September 30, 2010 was as follows:
Derivatives not accounted | Amount of Realized Gain or (Loss) on | |||||||||||||||||||||||
Investments* | Foreign currency | Futures | Swaps | Written | Total | |||||||||||||||||||
Credit contracts | $ | (553,630 | ) | $ | — | $ | — | (254,317 | ) | $ | 323,600 | $ | (484,347 | ) | ||||||||||
Foreign exchange contracts | (95,394 | ) | (1,678,471 | ) | — | — | 76,254 | (1,697,611 | ) | |||||||||||||||
Interest rate contracts | — | — | (7,208,157 | ) | (236,259 | ) | — | (7,444,416 | ) | |||||||||||||||
Total | $ | (649,024 | ) | $ | (1,678,471 | ) | $ | (7,208,157 | ) | $ | (490,576 | ) | $ | 399,854 | $ | (9,626,374 | ) | |||||||
Derivatives not accounted | Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |||||||||||||||||||||||
Investments* | Foreign currency | Futures | Swaps | Written | Total | |||||||||||||||||||
Credit contracts | $ | — | $ | — | $ | — | $ | (1,470,144 | ) | $ | — | $ | (1,470,144 | ) | ||||||||||
Foreign exchange contracts | — | (1,414,683 | ) | — | — | — | (1,414,683 | ) | ||||||||||||||||
Interest rate contracts | — | — | 735,482 | (1,673,564 | ) | 154,556 | (783,526 | ) | ||||||||||||||||
Total | $ | — | $ | (1,414,683 | ) | $ | 735,482 | $ | (3,143,708 | ) | $ | 154,556 | $ | (3,668,353 | ) | |||||||||
* | Amounts recognized for purchased options are included in net realized gain (loss) on investments and net change in unrealized appreciation or depreciation on investments. |
** | Amounts recognized for forward foreign currency contracts are included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign currency related transactions. |
See Accompanying Notes to Financial Statements
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ING CLASSIC MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Fair Value | |||||||||||||||
CERTIFICATES OF DEPOSIT: 16.2% | ||||||||||||||||
$ | 3,250,000 | Barclays Bank PLC, 0.500%, due 10/01/10 | $ | 3,250,000 | ||||||||||||
1,750,000 | BNP Paribas New York, 0.520%, due 02/09/11 | 1,750,762 | ||||||||||||||
1,250,000 | BNP Paribas New York, 0.530%, due 10/15/10 | 1,250,015 | ||||||||||||||
6,000,000 | Commonwealth Bank of Australia, 0.230%, due 10/29/10 | 6,000,000 | ||||||||||||||
1,000,000 | Deutsche Bank, 0.510%, due 05/25/11 | 1,000,065 | ||||||||||||||
5,000,000 | Dexia Credit Local S.A. New York, 0.456%, due 06/29/11 | 5,000,000 | ||||||||||||||
1,500,000 | Lloyds TSB Bank PLC, 0.510%, due 10/22/10 | 1,500,218 | ||||||||||||||
1,250,000 | Lloyds TSB Bank PLC, 1.175%, due 10/26/10 | 1,250,800 | ||||||||||||||
3,250,000 | Natixis US Finance Co., 0.420%, due 12/30/10 | 3,250,163 | ||||||||||||||
500,000 | Rabobank Nederland NV NY, 0.390%, due 12/30/10 | 500,045 | ||||||||||||||
3,100,000 | Royal Bank of Canada, 0.400%, due 10/28/10 | 3,099,962 | ||||||||||||||
1,500,000 | Royal Bank of Canada, 0.853%, due 07/01/11 | 1,504,666 | ||||||||||||||
1,000,000 | Societe Generale NY, 0.400%, due 07/19/11 | 997,820 | ||||||||||||||
3,000,000 | Svenska Handelsbanken AB, 0.220%, due 10/15/10 | 3,000,000 | ||||||||||||||
3,750,000 | Svenska Handelsbanken AB, 0.270%, due 11/18/10 | 3,750,100 | ||||||||||||||
6,000,000 | Toronto Dominion Bank NY, 0.450%, due 11/04/10 | 6,000,000 | ||||||||||||||
750,000 | Toronto Dominion Bank NY, 0.510%, due 11/17/10 | 750,010 | ||||||||||||||
1,000,000 | Toronto Dominion Bank NY, 0.540%, due 11/19/10 | 1,000,054 | ||||||||||||||
1,000,000 | Toronto Dominion Bank NY, 0.620%, due 07/15/11 | 1,000,000 | ||||||||||||||
Total Certificates of Deposit (Cost $45,854,680) | 45,854,680 | |||||||||||||||
COMMERCIAL PAPER: 56.0% | ||||||||||||||||
2,500,000 | # | ANZ National Int’l Ltd., 0.300%, due 01/24/11 | 2,497,604 | |||||||||||||
5,000,000 | # | ANZ National Int’l Ltd., 0.598%, due 07/25/11 | 5,000,000 | |||||||||||||
3,000,000 | Barclays U.S. Funding LLC, 0.150%, due 10/01/10 | 3,000,000 | ||||||||||||||
2,000,000 | #, + | Barton Capital LLC, 0.260%, due 10/26/10 | 1,999,639 |
Principal Amount | Fair Value | |||||||||||||||
COMMERCIAL PAPER: (continued) | ||||||||||||||||
$ | 750,000 | #, + | Barton Capital LLC, 0.350%, due 10/06/10 | $ | 749,975 | |||||||||||
7,250,000 | #, + | Barton Capital LLC, 0.381%, due 01/14/11 | 7,241,965 | |||||||||||||
3,250,000 | BNP Paribas Finance, 0.200%, due 10/01/10 | 3,250,000 | ||||||||||||||
1,000,000 | BNP Paribas Finance, 0.200%, due 10/04/10 | 999,983 | ||||||||||||||
3,000,000 | + | Cafco LLC, 0.501%, due 10/18/10 | 2,999,292 | |||||||||||||
750,000 | + | Cafco LLC, 0.602%, due 01/19/11 | 748,625 | |||||||||||||
4,000,000 | + | Cafco LLC, 0.672%, due 01/14/11 | 3,992,183 | |||||||||||||
3,500,000 | + | Ciesco LLC, 0.260%, due 11/29/10 | 3,498,509 | |||||||||||||
2,000,000 | + | Ciesco LLC, 0.410%, due 11/17/10 | 1,998,838 | |||||||||||||
750,000 | + | Ciesco LLC, 0.672%, due 01/10/11 | 748,590 | |||||||||||||
1,000,000 | + | Ciesco LLC, 0.672%, due 01/13/11 | 998,064 | |||||||||||||
500,000 | #, + | Concord Minutemen Capital Co., 0.320%, due 10/04/10 | 499,987 | |||||||||||||
4,000,000 | #, + | Concord Minutemen Capital Co., 0.602%, due 11/19/10 | 3,996,733 | |||||||||||||
2,500,000 | #, + | Concord Minutemen Capital Co., 0.702%, due 12/02/10 | 2,496,986 | |||||||||||||
1,500,000 | #, + | Concord Minutemen Capital Co., 0.955%, due 01/11/11 | 1,495,963 | |||||||||||||
8,000,000 | #, + | Crown Point Capital Co., 0.602%, due 11/19/10 | 7,993,344 | |||||||||||||
1,000,000 | #, + | Crown Point Capital Co., 0.702%, due 12/02/10 | 998,794 | |||||||||||||
1,250,000 | Danske Corp., 0.260%, due 10/22/10 | 1,249,810 | ||||||||||||||
6,000,000 | Danske Corp., 0.370%, due 10/04/10 | 5,999,829 | ||||||||||||||
250,000 | Dexia Delaware LLC, 0.370%, due 10/05/10 | 249,990 | ||||||||||||||
1,250,000 | Dexia Delaware LLC, 0.661%, due 10/28/10 | 1,249,381 | ||||||||||||||
750,000 | + | Edison Asset Securitization LLC, 0.230%, due 10/20/10 | 749,909 | |||||||||||||
6,750,000 | + | Edison Asset Securitization LLC, 0.400%, due 10/12/10 | 6,749,175 |
See Accompanying Notes to Financial Statements
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ING CLASSIC MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Fair Value | |||||||||||||||
COMMERCIAL PAPER: (continued) | ||||||||||||||||
$ | 500,000 | + | Jupiter Securitization Company LLC, 0.270%, due 10/12/10 | $ | 499,959 | |||||||||||
7,862,000 | + | Jupiter Securitization Company LLC, 0.380%, due 10/05/10 | 7,861,668 | |||||||||||||
1,750,000 | Lloyds TSB Bank PLC, 0.471%, due 10/20/10 | 1,749,566 | ||||||||||||||
3,000,000 | Lloyds TSB Bank PLC, 0.511%, due 10/05/10 | 2,999,830 | ||||||||||||||
312,000 | Natixis US Finance Co., 0.501%, due 12/31/10 | 311,606 | ||||||||||||||
750,000 | Natixis US Finance Co., 0.602%, due 02/08/11 | 748,375 | ||||||||||||||
3,000,000 | Natixis US Finance Co., 0.681%, due 10/05/10 | 2,999,773 | ||||||||||||||
2,250,000 | #, + | Old Line Funding LLC, 0.240%, due 10/18/10 | 2,249,744 | |||||||||||||
2,000,000 | #, + | Old Line Funding LLC, 0.250%, due 11/18/10 | 1,999,333 | |||||||||||||
1,400,000 | #, + | Old Line Funding LLC, 0.260%, due 11/09/10 | 1,399,606 | |||||||||||||
2,000,000 | #, + | Old Line Funding LLC, 0.270%, due 10/13/10 | 1,999,820 | |||||||||||||
1,000,000 | #, + | Old Line Funding LLC, 0.622%, due 12/13/10 | 998,743 | |||||||||||||
7,500,000 | # | Pepsico, Inc., 0.160%, due 10/08/10 | 7,499,767 | |||||||||||||
500,000 | # | Pepsico, Inc., 0.160%, due 10/13/10 | 499,973 | |||||||||||||
4,750,000 | Royal Bank of Scotland Group, 0.200%, due 10/04/10 | 4,749,921 | ||||||||||||||
1,250,000 | Royal Bank of Scotland Group, 0.290%, due 11/15/10 | 1,249,547 | ||||||||||||||
1,250,000 | Royal Bank of Scotland Group, 0.491%, due 10/12/10 | 1,249,813 | ||||||||||||||
3,750,000 | Societe Generale North America, 0.230%, due 10/01/10 | 3,750,000 | ||||||||||||||
1,000,000 | Societe Generale North America, 0.235%, due 10/05/10 | 999,974 | ||||||||||||||
1,500,000 | Societe Generale North America, 0.551%, due 10/18/10 | 1,499,610 | ||||||||||||||
939,000 | #, + | Thunder Bay Funding LLC, 0.270%, due 12/06/10 | 938,535 | |||||||||||||
6,291,000 | #, + | Thunder Bay Funding LLC, 0.380%, due 10/12/10 | 6,290,318 | |||||||||||||
1,250,000 | #, + | Thunder Bay Funding LLC, 0.451%, due 11/22/10 | 1,249,188 | |||||||||||||
1,500,000 | UBS Finance Delaware LLC, 0.190%, due 10/05/10 | 1,499,968 |
Principal Amount | Fair Value | |||||||||||||||
$ | 5,000,000 | UBS Finance Delaware LLC, 0.481%, due 10/07/10 | $ | 4,999,600 | ||||||||||||
1,250,000 | + | Variable Funding Capital, 0.220%, due 10/12/10 | 1,249,916 | |||||||||||||
7,750,000 | + | Variable Funding Capital, 0.420%, due 10/14/10 | 7,748,825 | |||||||||||||
6,250,000 | Westpac Banking Group, 0.300%, due 01/06/11 | 6,244,988 | ||||||||||||||
5,750,000 | Windmill Funding Group, 0.501%, due 11/01/10 | 5,747,653 | ||||||||||||||
2,250,000 | + | Windmill Funding Group, 0.531%, due 01/18/11 | 2,246,389 | |||||||||||||
Total Commercial Paper (Cost $158,985,176) | 158,985,176 | |||||||||||||||
CORPORATE BONDS/NOTES: 6.2% | ||||||||||||||||
3,000,000 | C | Abbott Laboratories, 3.750%, due 03/15/11 | 3,041,210 | |||||||||||||
1,000,000 | # | American Honda Finance, 5.125%, due 12/15/10 | 1,008,786 | |||||||||||||
2,550,000 | Credit Suisse FB USA Inc., 0.486%, due 03/02/11 | 2,550,843 | ||||||||||||||
1,125,000 | Credit Suisse FB USA Inc., 5.500%, due 08/16/11 | 1,172,444 | ||||||||||||||
3,500,000 | Deutsche Bank AG, 0.340%, due 03/21/11 | 3,498,934 | ||||||||||||||
1,000,000 | Kreditanstalt fuer Wiederaufbau, 1.875%, due 03/15/11 | 1,005,397 | ||||||||||||||
1,500,000 | Kreditanstalt fuer Wiederaufbau, 3.250%, due 02/15/11 | 1,513,915 | ||||||||||||||
3,750,000 | #, C | Royal Bank of Canada, 0.533%, due 11/01/11 | 3,750,000 | |||||||||||||
Total Corporate Bonds/Notes (Cost $17,541,529) | 17,541,529 | |||||||||||||||
REPURCHASE AGREEMENT: 22.4% | ||||||||||||||||
63,558,000 | Goldman Sachs Repurchase Agreement dated 09/30/10, 0.210%, due 10/01/10, $63,558,371 to be received upon repurchase (Collateralized by $62,680,000 various U.S. Government Agency Obligations, 0.260%-5.500%, Market Value plus accrued interest $64,829,258, d | $ | 63,558,000 | |||||||||||||
Total Repurchase Agreement (Cost $63,558,000) | 63,558,000 | |||||||||||||||
Total Investments in Securities (Cost $285,939,385)* | 100.8 | % | $ | 285,939,385 | ||||||||||||
Other Assets and Liabilities - Net | (0.8 | ) | (2,141,143 | ) | ||||||||||||
Net Assets | 100.0 | % | $ | 283,798,242 | ||||||||||||
See Accompanying Notes to Financial Statements
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ING CLASSIC MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
(1) | All securities with a maturity date of greater than 13 months have either a variable rate, a demand feature, prerefunded, optional or mandatory put resulting in a maturity of one year or less. Rate shown reflects current rate. |
# | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to |
+ | Asset-backed Commercial Paper. |
that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
C | Bond may be called prior to maturity date. |
* | Cost for federal income tax purposes is the same as for financial statement purposes. |
Fair Value Measurements^
The following is a summary of the fair valuations according to the inputs used as of September 30, 2010 in valuing the Fund’s assets and liabilities:
Quoted Prices in Active Markets for Identical Investments (Level 1) | Other Observable Inputs (Level 2) | Significant Inputs | Fair Value at 9/30/2010 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at fair value | ||||||||||||||||
Certificates of Deposit | $ | — | $ | 45,854,680 | $ | — | $ | 45,854,680 | ||||||||
Commercial Paper | — | 158,985,176 | — | 158,985,176 | ||||||||||||
Corporate Bonds/Notes | — | 17,541,529 | — | 17,541,529 | ||||||||||||
Repurchase Agreements | — | 63,558,000 | — | 63,558,000 | ||||||||||||
Total Investments, at fair value | $ | — | $ | 285,939,385 | $ | — | $ | 285,939,385 | ||||||||
^ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
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ING INSTITUTIONAL PRIME MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Fair Value | |||||||||||
CERTIFICATES OF DEPOSIT: 14.0% | ||||||||||||
$ | 13,500,000 | Barclays Bank PLC, 0.500%, due 10/01/10 | $ | 13,500,000 | ||||||||
15,000,000 | BNP Paribas New York, 0.520%, due 02/09/11 | 15,006,531 | ||||||||||
9,250,000 | BNP Paribas New York, 0.530%, due 10/15/10 | 9,250,137 | ||||||||||
2,000,000 | BNP Paribas New York, 0.560%, due 10/07/10 | 2,000,103 | ||||||||||
20,000,000 | Commonwealth Bank of Australia, 0.230%, due 10/29/10 | 20,000,000 | ||||||||||
6,750,000 | Deutsche Bank, 0.510%, due 05/25/11 | 6,750,441 | ||||||||||
19,500,000 | Dexia Credit Local S.A. New York, 0.456%, due 06/29/11 | 19,500,000 | ||||||||||
12,500,000 | Lloyds TSB Bank PLC, 0.510%, due 10/22/10 | 12,501,821 | ||||||||||
5,750,000 | Lloyds TSB Bank PLC, 1.175%, due 10/26/10 | 5,753,682 | ||||||||||
9,000,000 | Natixis US Finance Co., 0.420%, due 12/30/10 | 9,000,452 | ||||||||||
2,750,000 | Rabobank Nederland NV NY, 0.390%, due 12/30/10 | 2,750,137 | ||||||||||
12,000,000 | Rabobank Nederland NV NY, 0.530%, due 11/30/10 | 12,000,199 | ||||||||||
17,000,000 | Royal Bank of Canada, 0.430%, due 11/18/10 | 17,000,000 | ||||||||||
5,000,000 | Royal Bank of Canada, 0.853%, due 07/01/11 | 5,015,552 | ||||||||||
14,250,000 | Societe Generale NY, 0.400%, due 07/19/11 | 14,218,935 | ||||||||||
8,250,000 | Svenska Handelsbanken AB, 0.220%, due 10/15/10 | 8,250,000 | ||||||||||
5,500,000 | Svenska Handelsbanken AB, 0.270%, due 11/18/10 | 5,500,146 | ||||||||||
6,500,000 | Toronto Dominion Bank NY, 0.450%, due 11/04/10 | 6,500,000 | ||||||||||
2,600,000 | Toronto Dominion Bank NY, 0.500%, due 12/20/10 | 2,600,457 | ||||||||||
9,393,000 | Toronto Dominion Bank NY, 0.540%, due 11/19/10 | 9,393,508 | ||||||||||
9,000,000 | Toronto Dominion Bank NY, 0.620%, due 07/15/11 | 9,000,000 | ||||||||||
Total Certificates of Deposit (Cost $205,492,101) | 205,492,101 | |||||||||||
COMMERCIAL PAPER: 50.4% | ||||||||||||
2,500,000 | American Honda Finance, 0.190%, due 10/12/10 | 2,499,855 | ||||||||||
9,250,000 | ANZ National Int’l Ltd., 0.300%, due 01/24/11 | 9,241,135 |
Principal Amount | Fair Value | |||||||||||
COMMERCIAL PAPER: (continued) | ||||||||||||
$ | 4,750,000 | # | ANZ National Int’l Ltd., 0.598%, due 07/25/11 | $ | 4,750,000 | |||||||
18,000,000 | ANZ National Int’l Ltd., 0.603%, due 04/20/11 | 17,939,700 | ||||||||||
1,025,000 | ASB Finance Ltd., 0.270%, due 11/01/10 | 1,024,762 | ||||||||||
16,250,000 | Barclays U.S. Funding LLC, 0.150%, due 10/01/10 | 16,250,000 | ||||||||||
10,000,000 | + | Barton Capital LLC, 0.260%, due 10/26/10 | 9,998,194 | |||||||||
7,500,000 | + | Barton Capital LLC, 0.350%, due 10/06/10 | 7,499,712 | |||||||||
26,250,000 | + | Barton Capital LLC, 0.381%, due 01/14/11 | 26,221,519 | |||||||||
1,000,000 | BNP Paribas Finance, 0.200%, due 10/01/10 | 1,000,000 | ||||||||||
7,750,000 | BNP Paribas Finance, 0.200%, due 10/04/10 | 7,749,871 | ||||||||||
9,000,000 | + | Cafco LLC, 0.250%, due 10/13/10 | 8,999,250 | |||||||||
3,000,000 | + | Cafco LLC, 0.391%, due 02/17/11 | 2,995,483 | |||||||||
5,000,000 | + | Cafco LLC, 0.501%, due 10/18/10 | 4,998,819 | |||||||||
1,500,000 | + | Cafco LLC, 0.602%, due 01/19/11 | 1,497,250 | |||||||||
12,750,000 | + | Cafco LLC, 0.672%, due 01/14/11 | 12,725,084 | |||||||||
3,915,000 | Cargill, Inc., 0.220%, due 10/04/10 | 3,914,928 | ||||||||||
8,200,000 | Cargill, Inc., 0.230%, due 10/21/10 | 8,198,952 | ||||||||||
8,500,000 | + | Ciesco LLC, 0.260%, due 11/29/10 | 8,496,378 | |||||||||
1,284,000 | + | Ciesco LLC, 0.410%, due 11/17/10 | 1,283,497 | |||||||||
10,000,000 | + | Ciesco LLC, 0.672%, due 01/10/11 | 9,981,203 | |||||||||
12,000,000 | + | Ciesco LLC, 0.672%, due 01/13/11 | 11,976,773 | |||||||||
10,000,000 | # | Commonwealth Bank of Australia, 0.568%, due 06/20/11 | 10,000,000 | |||||||||
6,750,000 | + | Concord Minutemen Capital Co., 0.320%, due 10/04/10 | 6,749,820 | |||||||||
19,250,000 | + | Concord Minutemen Capital Co., 0.602%, due 11/19/10 | 19,234,429 | |||||||||
3,500,000 | + | Concord Minutemen Capital Co., 0.702%, due 12/02/10 | 3,495,781 |
See Accompanying Notes to Financial Statements
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ING INSTITUTIONAL PRIME MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Fair Value | |||||||||||
COMMERCIAL PAPER: (continued) | ||||||||||||
$ | 4,000,000 | + | Concord Minutemen Capital Co., 0.702%, due 03/24/11 | $ | 3,986,467 | |||||||
5,500,000 | + | Concord Minutemen Capital Co., 0.955%, due 01/11/11 | 5,485,196 | |||||||||
7,750,000 | + | Crown Point Capital Co., 0.320%, due 10/04/10 | 7,749,793 | |||||||||
11,250,000 | + | Crown Point Capital Co., 0.602%, due 11/19/10 | 11,240,537 | |||||||||
3,500,000 | + | Crown Point Capital Co., 0.702%, due 12/02/10 | 3,495,781 | |||||||||
7,000,000 | + | Crown Point Capital Co., 0.702%, due 03/24/11 | 6,976,317 | |||||||||
9,500,000 | + | Crown Point Capital Co., 0.955%, due 01/11/11 | 9,474,429 | |||||||||
5,400,000 | Danske Corp., 0.260%, due 10/22/10 | 5,399,181 | ||||||||||
27,900,000 | Danske Corp., 0.370%, due 10/04/10 | 27,899,234 | ||||||||||
4,975,000 | Dexia Delaware LLC, 0.370%, due 10/05/10 | 4,974,795 | ||||||||||
7,500,000 | Dexia Delaware LLC, 0.661%, due 10/28/10 | 7,496,288 | ||||||||||
10,250,000 | + | Edison Asset Securitization LLC, 0.230%, due 10/20/10 | 10,248,756 | |||||||||
14,750,000 | + | Edison Asset Securitization LLC, 0.400%, due 10/12/10 | 14,748,197 | |||||||||
8,000,000 | + | Edison Asset Securitization LLC, 0.411%, due 10/18/10 | 7,998,451 | |||||||||
1,500,000 | + | Jupiter Securitization Company LLC, 0.230%, due 10/20/10 | 1,499,723 | |||||||||
9,467,000 | + | Jupiter Securitization Company LLC, 0.250%, due 11/18/10 | 9,463,844 | |||||||||
6,000,000 | + | Jupiter Securitization Company LLC, 0.270%, due 10/12/10 | 5,999,505 | |||||||||
5,250,000 | + | Jupiter Securitization Company LLC, 0.320%, due 11/01/10 | 5,248,553 | |||||||||
1,000,000 | + | Jupiter Securitization Company LLC, 0.330%, due 10/22/10 | 999,808 | |||||||||
12,000,000 | + | Jupiter Securitization Company LLC, 0.330%, due 12/06/10 | 11,992,740 | |||||||||
500,000 | + | Jupiter Securitization Company LLC, 0.340%, due 10/26/10 | 499,882 |
Principal Amount | Fair Value | |||||||||||
COMMERCIAL PAPER: (continued) | ||||||||||||
$ | 4,500,000 | + | Jupiter Securitization Company LLC, 0.380%, due 10/05/10 | $ | 4,499,810 | |||||||
15,000,000 | Lloyds TSB Bank PLC, 0.511%, due 10/05/10 | 14,999,150 | ||||||||||
5,750,000 | Natixis US Finance Co., 0.602%, due 02/08/11 | 5,737,542 | ||||||||||
21,250,000 | Natixis US Finance Co., 0.681%, due 10/05/10 | 21,248,920 | ||||||||||
1,018,000 | + | Old Line Funding LLC, 0.230%, due 10/15/10 | 1,017,909 | |||||||||
14,000,000 | + | Old Line Funding LLC, 0.240%, due 10/18/10 | 13,998,413 | |||||||||
15,550,000 | + | Old Line Funding LLC, 0.250%, due 11/18/10 | 15,544,817 | |||||||||
3,000,000 | + | Old Line Funding LLC, 0.260%, due 11/09/10 | 2,999,155 | |||||||||
4,789,000 | + | Old Line Funding LLC, 0.270%, due 10/13/10 | 4,788,569 | |||||||||
10,000,000 | + | Old Line Funding LLC, 0.622%, due 12/13/10 | 9,987,428 | |||||||||
34,000,000 | Pepsico, Inc., 0.160%, due 10/08/10 | 33,998,942 | ||||||||||
5,500,000 | Pepsico, Inc., 0.160%, due 10/13/10 | 5,499,707 | ||||||||||
21,750,000 | Royal Bank of Scotland Group, 0.200%, due 10/04/10 | 21,749,637 | ||||||||||
6,500,000 | Royal Bank of Scotland Group, 0.290%, due 11/15/10 | 6,497,644 | ||||||||||
7,500,000 | Royal Bank of Scotland Group, 0.491%, due 10/12/10 | 7,498,877 | ||||||||||
7,500,000 | Societe Generale North America, 0.230%, due 10/01/10 | 7,500,000 | ||||||||||
8,500,000 | Societe Generale North America, 0.235%, due 10/05/10 | 8,499,775 | ||||||||||
500,000 | Societe Generale North America, 0.300%, due 11/01/10 | 499,871 | ||||||||||
5,000,000 | Societe Generale North America, 0.551%, due 10/18/10 | 4,998,701 | ||||||||||
3,750,000 | + | Thunder Bay Funding LLC, 0.260%, due 11/18/10 | 3,748,700 | |||||||||
19,000,000 | + | Thunder Bay Funding LLC, 0.380%, due 10/12/10 | 18,997,965 | |||||||||
15,837,000 | + | Thunder Bay Funding LLC, 0.451%, due 11/22/10 | 15,826,706 | |||||||||
14,500,000 | UBS Finance Delaware LLC, 0.190%, due 10/05/10 | 14,499,694 |
See Accompanying Notes to Financial Statements
69
Table of Contents
ING INSTITUTIONAL PRIME MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Fair Value | |||||||||||
COMMERCIAL PAPER: (continued) | ||||||||||||
$ | 10,000,000 | UBS Finance Delaware LLC, 0.200%, due 10/18/10 | $ | 9,999,056 | ||||||||
9,750,000 | UBS Finance Delaware LLC, 0.481%, due 10/07/10 | 9,749,220 | ||||||||||
500,000 | UBS Finance Delaware LLC, 0.496%, due 10/06/10 | 499,966 | ||||||||||
18,250,000 | + | Variable Funding Capital, 0.220%, due 10/12/10 | 18,248,773 | |||||||||
4,750,000 | + | Variable Funding Capital, 0.350%, due 10/26/10 | 4,748,845 | |||||||||
21,000,000 | + | Variable Funding Capital, 0.420%, due 10/14/10 | 20,996,815 | |||||||||
1,000,000 | Wal-Mart Stores, Inc., 0.200%, due 10/04/10 | 999,983 | ||||||||||
13,500,000 | Westpac Banking Group, 0.300%, due 01/06/11 | 13,489,087 | ||||||||||
2,500,000 | + | Windmill Funding Group, 0.250%, due 11/09/10 | 2,499,323 | |||||||||
2,500,000 | + | Windmill Funding Group, 0.400%, due 10/22/10 | 2,499,417 | |||||||||
11,750,000 | + | Windmill Funding Group, 0.481%, due 11/22/10 | 11,741,853 | |||||||||
9,250,000 | + | Windmill Funding Group, 0.501%, due 11/01/10 | 9,246,373 | |||||||||
7,750,000 | + | Windmill Funding Group, 0.531%, due 01/18/11 | 7,737,563 | |||||||||
Total Commercial Paper (Cost $738,694,078) | 738,694,078 | |||||||||||
CORPORATE BONDS/NOTES: 6.1% | ||||||||||||
1,500,000 | C | Abbott Laboratories, 3.750%, due 03/15/11 | 1,520,605 | |||||||||
710,000 | C | Abbott Laboratories, 5.600%, due 05/15/11 | 732,811 | |||||||||
4,750,000 | Australia & New Zealand Banking Group Ltd., 4.875%, due 11/08/10 | 4,771,533 | ||||||||||
12,310,000 | Credit Suisse FB USA Inc., 0.486%, due 03/02/11 | 12,312,493 | ||||||||||
1,750,000 | Credit Suisse FB USA Inc., 5.500%, due 08/16/11 | 1,823,674 | ||||||||||
5,050,000 | Deutsche Bank AG, 0.340%, due 03/21/11 | 5,048,526 | ||||||||||
6,800,000 | Deutsche Bank AG London, 5.000%, due 10/12/10 | 6,809,399 | ||||||||||
7,520,000 | Kreditanstalt fuer Wiederaufbau, 1.875%, due 03/15/11 | 7,560,586 | ||||||||||
4,000,000 | Kreditanstalt fuer Wiederaufbau, 3.250%, due 02/15/11 | 4,037,106 |
Principal Amount | Fair Value | |||||||||||
CORPORATE BONDS/NOTES: (continued) | ||||||||||||
$ | 3,500,000 | # | Rabobank Nederland NV NY, 0.446%, due 09/16/11 | $ | 3,500,000 | |||||||
1,750,000 | # | Rabobank Nederland NV NY, 0.635%, due 08/05/11 | 1,752,674 | |||||||||
7,000,000 | #, C | Royal Bank of Canada, 0.533%, due 11/01/11 | 7,000,000 | |||||||||
19,000,000 | #, C | Svenska Handelsbanken AB, 0.448%, due 10/07/11 | 19,000,000 | |||||||||
13,000,000 | C | Westpac Banking Group, 0.558%, due 09/28/11 | 13,000,000 | |||||||||
Total Corporate Bonds/Notes (Cost $88,869,407) | 88,869,407 | |||||||||||
REPURCHASE AGREEMENTS: 29.9% | ||||||||||||||
123,574,000 | Deutsche Bank Repurchase Agreement dated 09/30/10, 0.240%, due 10/01/10, $123,574,824 to be received upon repurchase (Collateralized by $115,078,000 Federal Home Loan Mortgage Corporation, 4.500%, Market Value plus accrued interest $126,046,429, due 01/15 | 123,574,000 | ||||||||||||
138,000,000 | Goldman Sachs Repurchase Agreement dated 09/30/10, 0.210%, due 10/01/10, $138,000,805 to be received upon repurchase (Collateralized by $140,637,000 Federal Farm Credit Bank, 0.000% - 1.400%, Market Value plus accrued interest $140,760,924, due 09/24/12 - 10/ | 138,000,000 | ||||||||||||
176,000,000 | Morgan Stanley Repurchase Agreement dated 09/30/10, 0.250%, due 10/01/10, $176,001,222 to be received upon repurchase (Collateralized by $176,052,000 Federal Farm Credit Bank, 0.000% - 2.490%, Market Value plus accrued interest $179,520,812, due 12/14/11 - 03 | 176,000,000 | ||||||||||||
Total Repurchase Agreements (Cost $437,574,000) | 437,574,000 | |||||||||||||
Total Investments in Securities (Cost $1,470,629,586)* | 100.4 | % | $ | 1,470,629,586 | ||||||||||
Other Assets and Liabilities - Net | (0.4 | ) | (5,563,848 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 1,465,065,738 | ||||||||||
See Accompanying Notes to Financial Statements
70
Table of Contents
ING INSTITUTIONAL PRIME MONEY MARKET FUND(1) | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
(1) | All securities with a maturity date of greater than 13 months have either a variable rate, a demand feature, prerefunded, optional or mandatory put resulting in a maturity of one year or less. Rate shown reflects current rate. |
# | 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. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
+ | Asset-backed Commercial Paper. |
C | Bond may be called prior to maturity date. |
* | Cost for federal income tax purposes is $1,470,635,908. |
Net unrealized depreciation consists of: | ||||
Gross Unrealized Appreciation | $ | — | ||
Gross Unrealized Depreciation | (6,322 | ) | ||
Net Unrealized Depreciation | $ | (6,322 | ) | |
Fair Value Measurements^
The following is a summary of the fair valuations according to the inputs used as of September 30, 2010 in valuing the Fund’s assets and liabilities:
Quoted Prices in Active Markets | Other Observable (Level 2) | Significant (Level 3) | Fair Value at 9/30/2010 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at fair value | ||||||||||||||||
Certificates of Deposit | $ | — | $ | 205,492,101 | $ | — | $ | 205,492,101 | ||||||||
Commercial Paper | — | 738,694,078 | — | 738,694,078 | ||||||||||||
Corporate Bonds/Notes | — | 88,869,407 | — | 88,869,407 | ||||||||||||
Repurchase Agreements | — | 437,574,000 | — | 437,574,000 | ||||||||||||
Total Investments, at fair value | $ | — | $ | 1,470,629,586 | $ | — | $ | 1,470,629,586 | ||||||||
^ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
71
Table of Contents
ING Investments Distributor, LLC offers the funds listed below. Before investing in a fund, shareholders should carefully review the fund’s prospectus. Investors may obtain a copy of a prospectus of any ING Fund by calling (800) 992-0180 or by going to www.ingfunds.com.
Domestic Equity and Income Funds
ING Core Equity Research Fund
ING Real Estate Fund
Domestic Fund-of-Funds
ING Capital Allocation Fund
Domestic Equity Growth Funds
ING Corporate Leaders 100 Fund
ING Equity Dividend Fund
ING Growth Opportunities Fund
ING MidCap Opportunities Fund
ING Small Company Fund
ING SmallCap Opportunities Fund
ING Tactical Asset Allocation Fund
Domestic Equity Index Funds
ING Index Plus LargeCap Fund
ING Index Plus MidCap Fund
ING Index Plus SmallCap Fund
Domestic Equity Value Fund
ING Value Choice Fund
Fixed-lncome Funds
ING GNMA lncome Fund
ING High Yield Bond Fund
ING Intermediate Bond Fund
Global Equity Funds
ING Global Equity Dividend Fund
ING Global Natural Resources Fund
ING Global Real Estate Fund
ING Global Value Choice Fund
International Equity Funds
ING Alternative Beta Fund
ING Asia-Pacific Real Estate Fund
ING Emerging Countries Fund
ING European Real Estate Fund
ING Global Opportunities Fund
ING Greater China Fund
ING Index Plus International Equity Fund
ING International Capital Appreciation Fund
ING International Real Estate Fund
ING International SmallCap Multi-Manager Fund
ING International Value Fund
ING International Value Choice Fund
ING Russia Fund
Global Fixed-Income Fund
ING Global Bond Fund
International Funds-of-Funds
ING Diversified International Fund
ING Global Target Payment Fund
Loan Participation Fund
ING Senior lncome Fund
ING Floating Rate Fund
Money Market Funds*
ING Classic Money Market Fund
ING Money Market Fund
* | An investment in a fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. |
Table of Contents
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.
(formerly, PNC Global Investment Servicing (U.S.) Inc.)
301 Bellevue Parkway
Wilmington, Delaware 19809
Custodian
The Bank of New York Mellon
One Wall Street
New York, New York 10286
Legal Counsel
Dechert
1775 I Street, N.W.
Washington, D.C. 20006
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.ingfunds.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.
PRSAR-UFIALL | (0910-111910) |
Table of Contents
This report is submitted for general information to shareholders of the ING Funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the fund’s investment objectives, risks, charges, expenses and other information. This information should be read carefully. |
President’s Letter | 1 | |||||
Market Perspective | 2 | |||||
Portfolio Managers’ Report | 4 | |||||
Shareholder Expense Example | 6 | |||||
Statement of Assets and Liabilities | 7 | |||||
Statement of Operations | 8 | |||||
Statement of Changes in Net Assets | 9 | |||||
Financial Highlights | 10 | |||||
Notes to Financial Statements | 11 | |||||
Portfolio of Investments | 17 | |||||
Advisory Contract Approval Discussion | 23 |
Go Paperless with E-Delivery! | |||||||||||
Sign up now for on-line prospectuses, fund reports, and proxy statements. In less than five minutes, you can help reduce paper mail and lower fund costs. | |||||||||||
Just go to www.ingfunds.com, click on the E-Delivery icon from the home page, follow the directions and complete the quick 5 Steps to Enroll. | |||||||||||
You will be notified by e-mail when these communications become available on the internet. Documents that are not available on the internet will continue to be sent by mail. |
President and Chief Executive Officer
ING Funds
October 8, 2010
The views expressed in the President’s Letter reflect those of the President as of the date of the letter. Any such views are subject to change at any time based upon market or other conditions and the ING Funds disclaim any responsibility to update such views. These views may not be relied on as investment advice and because investment decisions for an ING Fund are based on numerous factors, may not be relied on as an indication of investment intent on behalf of any ING Fund. Reference to specific company securities should not be construed as recommendations or investment advice.
Index | Description | |||||
---|---|---|---|---|---|---|
S&P/Case-Shiller 20-City Composite Home Price Index | A composite index of the home price index for the top 20 Metropolitan Statistical Areas in the United States. The index is published monthly by Standard & Poor’s. | |||||
Barclays Capital U.S. Aggregate Bond Index | An unmanaged index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities. | |||||
Barclays Capital U.S. Treasury Index | An unmanaged index that includes public obligations of the U.S. Treasury. Treasury bills, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS and STRIPS, are excluded. | |||||
Barclays Capital Corporate Investment Grade Bond Index | The corporate component of the Barclays Capital U.S. Credit Index. The U.S. Credit Index includes publicly-issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. The index includes both corporate and non-corporate sectors. The corporate sectors are industrial, utility and finance, which includes both U.S. and non-U.S. corporations. | |||||
Barclays Capital MBS Index | The Barclays Capital MBS Index is an unmanaged index composed of fixed-income security mortgage pools sponsored by GNMA, FNMA and FHLMC, including GNMA Graduated Payment Mortgages. | |||||
Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index | An unmanaged index that includes all fixed income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million, and at least one year to maturity. | |||||
S&P 500® Index | An unmanaged index that measures the performance of securities of approximately 500 large-capitalization companies whose securities are traded on major U.S. stock markets. | |||||
MSCI Japan® Index | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan. | |||||
MSCI Europe ex UK® Index | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe, excluding the UK. | |||||
MSCI UK® Index | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK. | |||||
The S&P/LSTA U.S. Leveraged Loan 100 Index | The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to reflect the largest facilities in the leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based upon market weightings, spreads, and interest payments. The index consists of 100 loan facilities drawn from a larger benchmark, the S&P/LSTA (Loan Syndications and Trading Association) Leveraged Loan Index (LLI), which covers more than 1,100 facilities and has a market value of more than $480 billion. |
ING FLOATING RATE FUND | PORTFOLIO MANAGERS’ REPORT |
PORTFOLIO CHARACTERISTICS AS OF SEPTEMBER 30, 2010 | ||||||||
---|---|---|---|---|---|---|---|---|
Net Assets | $ | 137,112,508 | ||||||
Total Assets | $ | 207,841,451 | ||||||
Assets Invested in Loans | $ | 125,911,473 | ||||||
Loans Represented | 102 | |||||||
Average Amount Outstanding per Loan | $ | 1,234,426 | ||||||
Industries Represented | 26 | |||||||
Average Loan Amount per Industry | $ | 4,842,749 | ||||||
Portfolio Turnover Rate (YTD) | 0 | |||||||
Weighted Average Days to Interest Rate Reset | 50 | |||||||
Average Loan Final Maturity | 52 months | |||||||
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index.
ING FLOATING RATE FUND | PORTFOLIO MANAGERS’ REPORT |
TOP TEN LOAN ISSUERS AS OF SEPTEMBER 30, 2010 AS A PERCENTAGE OF: | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
TOTAL ASSETS | NET ASSETS | |||||||||||
NRG Energy, Inc. | 1.4% | 2.2% | ||||||||||
Dollar General Corporation | 1.4% | 2.2% | ||||||||||
Ford Motor Company | 1.4% | 2.1% | ||||||||||
Charter Communications Operating, LLC | 1.4% | 2.1% | ||||||||||
Georgia Pacific, LLC | 1.2% | 1.8% | ||||||||||
Graphic Packaging International, Inc. | 1.2% | 1.8% | ||||||||||
Sungard Data Systems, Inc. | 1.2% | 1.8% | ||||||||||
ARAMARK Corporation | 1.2% | 1.8% | ||||||||||
Calpine Corporation | 1.2% | 1.8% | ||||||||||
Michaels Stores, Inc. | 1.2% | 1.8% |
Ratings Distribution as of September 30, 2010 (Unaudited) | ||||||||
---|---|---|---|---|---|---|---|---|
Ba | 68.6 | % | ||||||
B | 27.4 | % | ||||||
Caa and below | 1.0 | % | ||||||
Not rated* | 3.0 | % | ||||||
Ratings distribution shows the percentage of the Fund’s loan commitments (excluding cash and foreign cash) that are rated in each ratings category, based upon the categories provided by Moody’s Investors Service, Inc. Ratings distribution is based on Moody’s senior secured facility ratings. Loans rated below Baa by Moody’s are considered to be below investment grade. Ratings can change from time to time, and current ratings may not fully reflect the actual credit condition or risks posed by a loan. | ||||||||
* Not rated includes loans to non-U.S. borrowers (which are typically unrated) and loans for which the rating has been withdrawn. |
Jeffrey A. Bakalar Senior Vice President Senior Portfolio Manager ING Investment Management Co. | Daniel A. Norman Senior Vice President Senior Portfolio Manager ING Investment Management Co. | |||||
ING Floating Rate Fund November 1, 2010 |
Actual Fund Return | Hypothetical (5% return before expenses) | ||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Account Value August 17, 2010 | Ending Account Value September 30, 2010 | Annualized Expense Ratio | Expenses Paid During the Period Ended September 30, 2010* | Beginning Account Value August 17, 2010 | Ending Account Value September 30, 2010 | Annualized Expense Ratio | Expenses Paid During the Period Ended September 30, 2010* | ||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,005.00 | 1.00 | % | $ | 1.21 | $ | 1,000.00 | $ | 1,004.82 | 1.00 | % | $ | 1.21 | |||||||||||||||||||
Class C | 1,000.00 | 1,004.00 | 1.75 | 2.11 | 1,000.00 | 1,003.92 | 1.75 | 2.11 | |||||||||||||||||||||||||||
Class I | 1,000.00 | 1,006.00 | 0.75 | 0.91 | 1,000.00 | 1,005.12 | 0.75 | 0.91 | |||||||||||||||||||||||||||
Class R | 1,000.00 | 1,004.00 | 1.25 | 1.51 | 1,000.00 | 1,004.52 | 1.25 | 1.51 | |||||||||||||||||||||||||||
Class W | 1,000.00 | 1,006.00 | 0.75 | 0.91 | 1,000.00 | 1,005.12 | 0.75 | 0.91 |
* | Expenses are equal to the Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 44/365 to reflect the most recent fiscal half-year. |
ASSETS: | |||||||
Investments in securities at fair value (Cost $126,369,964) | $ | 126,864,473 | |||||
Short-term investments (Cost $70,812,050) | 70,812,050 | ||||||
Cash | 2,026,048 | ||||||
Receivables: | |||||||
Investment securities sold | 60,891 | ||||||
Fund shares sold | 7,898,469 | ||||||
Interest | 15,366 | ||||||
Reimbursement due from manager | 9,571 | ||||||
Prepaid offering expense | 70,357 | ||||||
Prepaid expenses | 62,241 | ||||||
Total assets | 207,819,466 | ||||||
LIABILITIES: | |||||||
Payable for investment securities purchased | 70,601,815 | ||||||
Payable to affiliates | 51,718 | ||||||
Accrued trustees fees | 163 | ||||||
Other accrued expenses and liabilities | 50,247 | ||||||
Total liabilities | 70,703,943 | ||||||
NET ASSETS | $ | 137,115,523 | |||||
NET ASSETS WERE COMPRISED OF: | |||||||
Paid-in capital | $ | 136,511,397 | |||||
Undistributed net investment income | 106,893 | ||||||
Accumulated net realized gain | 2,724 | ||||||
Net unrealized appreciation | 494,509 | ||||||
NET ASSETS | $ | 137,115,523 | |||||
Class A: | |||||||
Net assets | $ | 10,295,576 | |||||
Shares authorized | unlimited | ||||||
Par value | $ | 0.001 | |||||
Shares outstanding | 1,024,282 | ||||||
Net asset value and redemption price per share | $ | 10.05 | |||||
Maximum offering price per share (2.50%)(1) | $ | 10.31 | |||||
Class C: | |||||||
Net assets | $ | 86,481 | |||||
Shares authorized | unlimited | ||||||
Par value | $ | 0.001 | |||||
Shares outstanding | 8,613 | ||||||
Net asset value and redemption price per share(2) | $ | 10.04 | |||||
Class I: | |||||||
Net assets | $ | 126,420,382 | |||||
Shares authorized | unlimited | ||||||
Par value | $ | 0.001 | |||||
Shares outstanding | 12,570,630 | ||||||
Net asset value and redemption price per share | $ | 10.06 | |||||
Class R: | |||||||
Net assets | $ | 310,057 | |||||
Shares authorized | unlimited | ||||||
Par value | $ | 0.001 | |||||
Shares outstanding | 30,878 | ||||||
Net asset value and redemption price per share | $ | 10.04 | |||||
Class W: | |||||||
Net assets | $ | 3,027 | |||||
Shares authorized | unlimited | ||||||
Par value | $ | 0.001 | |||||
Shares outstanding | 301 | ||||||
Net asset value and redemption price per share | $ | 10.06 | |||||
(1) Maximum offering price is computed at 100/97.50 of net asset value. On purchases of $100,000 or more, the offering price is reduced. | |||||||
(2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
August 17, 2010(1) – September 30, 2010 | |||||||
---|---|---|---|---|---|---|---|
INVESTMENT INCOME: | |||||||
Interest | $ | 131,370 | |||||
Other | 38,185 | ||||||
Total investment income | 169,555 | ||||||
EXPENSES: | |||||||
Investment management fees | 43,896 | ||||||
Administration fees | 7,981 | ||||||
Distribution and service fees: | |||||||
Class A | 2,961 | ||||||
Class C | 33 | ||||||
Class R | 62 | ||||||
Transfer agent fees: | |||||||
Class A | 167 | ||||||
Class I | 535 | ||||||
Class R | 2 | ||||||
Custodian fees | 1,750 | ||||||
Professional fees | 1,258 | ||||||
Trustees fees | 163 | ||||||
Postage expense | 1,038 | ||||||
Offering expense | 9,643 | ||||||
Miscellaneous expense | 2,744 | ||||||
Total expenses | 72,233 | ||||||
Net waived and reimbursed fees | (9,571 | ) | |||||
Net expenses | 62,662 | ||||||
Net investment income | 106,893 | ||||||
REALIZED AND UNREALIZED GAIN: | |||||||
Net realized gain | 2,724 | ||||||
Net change in unrealized appreciation or depreciation | 494,509 | ||||||
Net realized and unrealized gain | 497,233 | ||||||
Increase in net assets resulting from operations | $ | 604,126 | |||||
(1) Commencement of operations. |
August 17, 2010(1) – September 30, 2010 | |||||||
---|---|---|---|---|---|---|---|
FROM OPERATIONS: | |||||||
Net investment income | $ | 106,893 | |||||
Net realized gain | 2,724 | ||||||
Net change in unrealized appreciation or depreciation | 494,509 | ||||||
Increase in net assets resulting from operations | 604,126 | ||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||
Net proceeds from sale of shares | 137,002,008 | ||||||
Cost of shares redeemed | (490,611 | ) | |||||
Net increase in net assets resulting from capital share transactions | 136,511,397 | ||||||
Net increase in net assets | 137,115,523 | ||||||
NET ASSETS: | |||||||
Beginning of period | — | ||||||
End of period | $ | 137,115,523 | |||||
Undistributed net investment income at end of period | $ | 106,893 | |||||
(1) Commencement of operations. |
Income (loss) from investment operations | Less distributions | Ratios to average net assets | Supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net asset value, beginning of year or period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | From return of capital | Total distributions | Net asset value, end of year or period | Total Return(1) | Expenses before reductions/ additions (2)(3) | Expenses, net of fee waivers and/or recoupments, if any (2)(3) | Expenses, net of all reductions/ additions (2)(3) | Net investment income (loss) (2)(3) | Net assets, end of year or period | Portfolio Turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-17-10(4)–09-30-10 | 10.00 | 0.01 | 0.04 | 0.05 | — | — | — | — | 10.05 | 0.50 | 1.12 | 1.00 | 1.00 | 0.78 | 10,296 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-17-10(4)–09-30-10 | 10.00 | 0.00 | * | 0.04 | 0.04 | — | — | — | — | 10.04 | 0.40 | 1.87 | 1.75 | 1.75 | 0.62 | 86 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-17-10(4)–09-30-10 | 10.00 | 0.01 | 0.05 | 0.06 | — | — | — | — | 10.06 | 0.60 | 0.87 | 0.75 | 0.75 | 1.44 | 126,420 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-17-10(4)–09-30-10 | 10.00 | 0.00 | * | 0.04 | 0.04 | — | — | — | — | 10.04 | 0.40 | 1.37 | 1.25 | 1.25 | 0.78 | 310 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-17-10(4)–09-30-10 | 10.00 | 0.01 | 0.05 | 0.06 | — | — | — | — | 10.06 | 0.60 | 0.87 | 0.75 | 0.75 | 0.94 | 3 | — |
(1) | Total return is calculated assuming reinvestment of all dividends, capital gain distributions and return of capital distributions, if any, at net asset value and excluding the deduction of sales charges. Total return for periods less than one year is not annualized. |
(2) | Annualized for periods less than one year. |
(3) | Expense ratios reflect operating expenses of a Fund. Expenses before reductions/additions do not reflect amounts reimbursed by the Investment Adviser and/or Distributor or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by a Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by an Investment Adviser and/or Distributor but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions/additions represent the net expenses paid by a Fund. Net investment income (loss) is net of all such additions or reductions. |
(4) | Commencement of operations. |
* | Amount is less than $0.005. |
Fund. Investments in securities of sufficient credit quality, maturing in 60 days or less from date of acquisition, are valued at amortized cost which approximates fair value. To the extent the Fund invests in other registered companies, the Fund’s NAV is calculated based on the current NAV of the registered investment company in which the Fund invests. The prospectuses for those investment companies explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing.
(1) | Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at the end of the day. |
(2) | Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions. |
Class A | Class C | Class R | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
0.25% | 1.00% | 0.50% |
(as a percentage of average daily net assets)
Class C — 1.75%
Class I — 0.75%
Class R — 1.25%
Class W — 0.75%
September 30, | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2011 | 2012 | 2013 | Total | |||||||||||
$ — | $ | — | $ | 9,571 | $ | 9,571 |
Accrued Investment Management Fees | Accrued Administrative Fees | Accrued Distribution and Service Fees | Total | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$41,933 | $ | 7,624 | $ | 2,161 | $ | 51,718 |
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 | # | # | # | # | ($) | ($) | ($) | ($) | ||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||
08-17-10(1)–09-30-10 | 1,024,413 | — | (131 | ) | 1,024,282 | 10,244,357 | — | (1,309 | ) | 10,243,048 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||
08-17-10(1)–09-30-10 | 8,613 | — | — | 8,613 | 86,110 | — | — | 86,110 | ||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||
08-17-10(1)–09-30-10 | 12,619,477 | — | (48,847 | ) | 12,570,630 | 126,359,786 | — | (489,299 | ) | 125,870,487 | ||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||
08-17-10(1)–09-30-10 | 30,878 | — | — | 30,878 | 308,742 | — | — | 308,742 | ||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||
08-17-10(1)–09-30-10 | 301 | — | — | 301 | 3,010 | — | — | 3,010 |
(1) | Commencement of operations. |
Per Share Amount | Payable Date | Record Date | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Class A | $ | 0.0289 | November 1, 2010 | Daily | ||||||||||
Class C | 0.0227 | November 1, 2010 | Daily | |||||||||||
Class I | 0.0310 | November 1, 2010 | Daily | |||||||||||
Class R | 0.0269 | November 1, 2010 | Daily | |||||||||||
Class W | 0.0310 | November 1, 2010 | Daily |
Bank Loan Ratings † (Unaudited) | |||||||||||||||||||||||||||
Principal Amount | Borrow\Tranche Description | | Moody’s | | S&P | | Fair Value | | |||||||||||||||||||
Loans*: 91.8% | |||||||||||||||||||||||||||
Aerospace & Defense: 2.8% | |||||||||||||||||||||||||||
Delta Airlines, Inc. | B2 | B | |||||||||||||||||||||||||
$ | 1,500,000 | (1) | Term Loan, maturing April 30, 2014 | $ | 1,415,625 | ||||||||||||||||||||||
Transdigm, Inc. | Ba2 | BB– | |||||||||||||||||||||||||
1,000,000 | Term Loan, 2.269%, maturing June 23, 2013 | 982,500 | |||||||||||||||||||||||||
United Airlines, Inc. | Ba3 | BB– | |||||||||||||||||||||||||
1,500,000 | Term Loan, 2.313%, maturing February 03, 2014 | 1,416,251 | |||||||||||||||||||||||||
3,814,376 | |||||||||||||||||||||||||||
Automobile: 6.9% | |||||||||||||||||||||||||||
Federal-Mogul Corporation | Ba3 | B+ | |||||||||||||||||||||||||
662,162 | (1) | Term Loan, maturing December 29, 2014 | 581,978 | ||||||||||||||||||||||||
337,838 | (1) | Term Loan, maturing December 28, 2015 | 296,928 | ||||||||||||||||||||||||
Ford Motor Company | Ba1 | BB | |||||||||||||||||||||||||
3,000,000 | (1) | Term Loan, maturing December 16, 2013 | 2,946,564 | ||||||||||||||||||||||||
Hertz Corporation | Ba1 | BB– | |||||||||||||||||||||||||
234,113 | (1) | Term Loan, maturing December 21, 2012 | 230,342 | ||||||||||||||||||||||||
1,265,887 | (1) | Term Loan, maturing December 21, 2012 | 1,245,492 | ||||||||||||||||||||||||
KAR Holdings, Inc. | Ba3 | B+ | |||||||||||||||||||||||||
2,500,000 | (1) | Term Loan, maturing October 18, 2013 | 2,441,145 | ||||||||||||||||||||||||
Pinafore, Inc. | Ba2 | BB | |||||||||||||||||||||||||
1,469,512 | (1) | Term Loan, maturing September 21, 2016 | 1,484,661 | ||||||||||||||||||||||||
United Components, Inc. | Ba3 | B | |||||||||||||||||||||||||
250,000 | (1) | Term Loan, maturing March 23, 2017 | 252,266 | ||||||||||||||||||||||||
9,479,376 | |||||||||||||||||||||||||||
Beverage, Food & Tobacco: 3.2% | |||||||||||||||||||||||||||
ARAMARK Corporation | Ba3 | BB | |||||||||||||||||||||||||
154,267 | (1) | Term Loan, 3.598%, maturing July 26, 2016 | 151,182 | ||||||||||||||||||||||||
2,345,733 | (1) | Term Loan, 3.783%, maturing July 26, 2016 | 2,298,818 | ||||||||||||||||||||||||
Pinnacle Foods Holding Corporation | Ba3 | B+ | |||||||||||||||||||||||||
2,000,000 | Term Loan, 2.758%, maturing April 02, 2014 | 1,938,438 | |||||||||||||||||||||||||
4,388,438 | |||||||||||||||||||||||||||
Chemicals, Plastics & Rubber: 5.1% | |||||||||||||||||||||||||||
Chemtura Corporation | Ba1 | NR | |||||||||||||||||||||||||
250,000 | Term Loan, 5.500%, maturing August 11, 2016 | 252,083 | |||||||||||||||||||||||||
Hexion Specialty Chemicals, Inc. | Ba3 | B– | |||||||||||||||||||||||||
1,408,746 | (1) | Term Loan, maturing May 05, 2015 | 1,349,931 | ||||||||||||||||||||||||
591,254 | (1) | Term Loan, maturing May 05, 2015 | 566,569 | ||||||||||||||||||||||||
Huntsman International, LLC | Ba2 | BB– | |||||||||||||||||||||||||
2,000,000 | (1) | Term Loan, maturing April 21, 2014 | 1,916,666 | ||||||||||||||||||||||||
Ineos US Finance, LLC | B2 | B | |||||||||||||||||||||||||
485,257 | (1) | Term Loan, maturing December 16, 2013 | 486,774 | ||||||||||||||||||||||||
514,743 | (1) | Term Loan, maturing December 16, 2014 | 516,351 | ||||||||||||||||||||||||
ISP Chemco, Inc. | Ba3 | BB | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing June 04, 2014 | 964,375 | ||||||||||||||||||||||||
Nalco Company | Ba1 | BB+ | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing May 13, 2016 | 973,125 | ||||||||||||||||||||||||
7,025,874 | |||||||||||||||||||||||||||
Containers, Packaging & Glass: 3.5% | |||||||||||||||||||||||||||
Graham Packaging Company, L.P. | B1 | B+ | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing September 23, 2016 | 1,009,063 | ||||||||||||||||||||||||
Graphic Packaging International, Inc. | Ba3 | BB+ | |||||||||||||||||||||||||
2,500,000 | (1) | Term Loan, 3.280%, maturing May 16, 2014 | 2,467,187 | ||||||||||||||||||||||||
Reynolds Group Holdings, Ltd. | Ba3 | BB | |||||||||||||||||||||||||
1,300,000 | (1) | Term Loan, maturing May 05, 2016 | 1,307,817 | ||||||||||||||||||||||||
4,784,067 |
Bank Loan Ratings † (Unaudited) | |||||||||||||||||||||||||||
Principal Amount | Borrow\Tranche Description | | Moody’s | | S&P | | Fair Value | | |||||||||||||||||||
Data and Internet Services: 7.0% | |||||||||||||||||||||||||||
Dealer Computer Services, Inc. | Ba3 | BB– | |||||||||||||||||||||||||
$ | 2,000,000 | (1) | Term Loan, 5.250%, maturing April 21, 2017 | $ | 1,998,214 | ||||||||||||||||||||||
First Data Corporation | B1 | B+ | |||||||||||||||||||||||||
997,324 | Term Loan, 3.006%, maturing September 24, 2014 | 880,012 | |||||||||||||||||||||||||
Open Text Corporation | Ba1 | BBB– | |||||||||||||||||||||||||
498,701 | Term Loan, 2.506%, maturing October 02, 2013 | 493,714 | |||||||||||||||||||||||||
Orbitz Worldwide, Inc. | B2 | B+ | |||||||||||||||||||||||||
1,500,000 | Term Loan, 3.324%, maturing July 25, 2014 | 1,433,250 | |||||||||||||||||||||||||
Sabre, Inc. | B1 | B | |||||||||||||||||||||||||
1,500,000 | (1) | Term Loan, 2.335%, maturing September 30, 2014 | 1,390,079 | ||||||||||||||||||||||||
Sungard Data Systems, Inc. | Ba3 | BB | |||||||||||||||||||||||||
2,500,000 | (1) | Term Loan, maturing February 26, 2016 | 2,458,202 | ||||||||||||||||||||||||
Travelport, Inc. | Ba3 | B | |||||||||||||||||||||||||
997,423 | Term Loan, 2.760%, maturing August 23, 2013 | 962,331 | |||||||||||||||||||||||||
9,615,802 | |||||||||||||||||||||||||||
Diversified / Conglomerate Manufacturing: 2.0% | |||||||||||||||||||||||||||
Clopay Ames True Temper Holding Corporation | B1 | BB+ | |||||||||||||||||||||||||
850,000 | (1) | Term Loan, maturing September 28, 2016 | 852,125 | ||||||||||||||||||||||||
Dresser, Inc. | B2 | B+ | |||||||||||||||||||||||||
1,500,000 | Term Loan, 2.612%, maturing May 04, 2014 | 1,449,845 | |||||||||||||||||||||||||
Sensata Technologies, B.V. | B1 | BB | |||||||||||||||||||||||||
500,000 | (1) | Term Loan, maturing April 26, 2013 | 482,125 | ||||||||||||||||||||||||
2,784,095 | |||||||||||||||||||||||||||
Diversified / Conglomerate Service: 3.4% | |||||||||||||||||||||||||||
Affinion Group, Inc. | Ba2 | BB– | |||||||||||||||||||||||||
1,994,987 | Term Loan, 5.000%, maturing October 10, 2016 | 1,962,569 | |||||||||||||||||||||||||
Catalina Marketing Corporation | Ba2 | BB– | |||||||||||||||||||||||||
943,701 | Term Loan, 3.006%, maturing October 01, 2014 | 919,519 | |||||||||||||||||||||||||
ServiceMaster Company | B1 | B+ | |||||||||||||||||||||||||
90,333 | Term Loan, 2.760%, maturing July 24, 2014 | 85,209 | |||||||||||||||||||||||||
907,090 | Term Loan, 2.769%, maturing July 24, 2014 | 855,641 | |||||||||||||||||||||||||
West Corporation | B1 | BB– | |||||||||||||||||||||||||
909,091 | (1) | Term Loan, maturing October 24, 2013 | 897,727 | ||||||||||||||||||||||||
4,720,665 | |||||||||||||||||||||||||||
Diversified Nat’l Rsrcs, Precious Metals & Minerals: 1.8% | |||||||||||||||||||||||||||
Georgia Pacific, LLC | Ba1 | BBB | |||||||||||||||||||||||||
2,493,467 | Term Loan, 3.541%, maturing December 23, 2014 | 2,495,219 | |||||||||||||||||||||||||
2,495,219 | |||||||||||||||||||||||||||
Electronics: 1.1% | |||||||||||||||||||||||||||
Spansion, LLC | NR | BB– | |||||||||||||||||||||||||
1,500,000 | (1) | Term Loan, 7.500%, maturing January 08, 2015 | 1,499,063 | ||||||||||||||||||||||||
1,499,063 | |||||||||||||||||||||||||||
Gaming: 4.5% | |||||||||||||||||||||||||||
Harrahs Operating Company, Inc. | Caa1 | B | |||||||||||||||||||||||||
1,495,280 | Term Loan, 3.497%, maturing January 28, 2015 | 1,289,264 | |||||||||||||||||||||||||
Penn National Gaming, Inc. | Ba2 | BB+ | |||||||||||||||||||||||||
2,000,000 | (1) | Term Loan, 2.051%, maturing October 03, 2012 | 1,965,375 | ||||||||||||||||||||||||
VML US Finance, LLC | B2 | B | |||||||||||||||||||||||||
1,948,774 | Term Loan, 4.780%, maturing May 27, 2013 | 1,921,776 | |||||||||||||||||||||||||
45,197 | Term Loan, 4.780%, maturing May 27, 2013 | 44,784 | |||||||||||||||||||||||||
Wynn Las Vegas, LLC | NR | NR | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing August 04, 2015 | 966,500 | ||||||||||||||||||||||||
6,187,699 |
Bank Loan Ratings † (Unaudited) | |||||||||||||||||||||||||||
Principal Amount | Borrow\Tranche Description | | Moody’s | | S&P | | Fair Value | | |||||||||||||||||||
Grocery: 1.1% | |||||||||||||||||||||||||||
Supervalu, Inc. | NR | BB+ | |||||||||||||||||||||||||
$ | 1,500,000 | (1) | Term Loan, maturing October 05, 2015 | $ | 1,456,647 | ||||||||||||||||||||||
1,456,647 | |||||||||||||||||||||||||||
Healthcare, Education and Childcare: 10.0% | |||||||||||||||||||||||||||
Biomet, Inc. | B1 | BB– | |||||||||||||||||||||||||
2,000,000 | (1) | Term Loan, maturing March 25, 2015 | 1,943,116 | ||||||||||||||||||||||||
CHS/Community Health Systems, Inc. | Ba3 | BB | |||||||||||||||||||||||||
1,902,396 | (1) | Term Loan, maturing July 25, 2014 | 1,807,272 | ||||||||||||||||||||||||
97,604 | (1) | Term Loan, maturing July 25, 2014 | 92,724 | ||||||||||||||||||||||||
Emdeon Business Services, LLC | Ba3 | BB | |||||||||||||||||||||||||
269,231 | (1) | Term Loan, maturing November 18, 2013 | 270,577 | ||||||||||||||||||||||||
HCA, Inc. | Ba3 | BB | |||||||||||||||||||||||||
1,000,000 | Term Loan, 2.539%, maturing November 18, 2013 | 963,975 | |||||||||||||||||||||||||
1,500,000 | Term Loan, 3.539%, maturing March 31, 2017 | 1,454,829 | |||||||||||||||||||||||||
Health Management Associates, Inc. | B1 | BB– | |||||||||||||||||||||||||
498,622 | Term Loan, 2.039%, maturing February 28, 2014 | 471,977 | |||||||||||||||||||||||||
HGI Holding, Inc. | B1 | B+ | |||||||||||||||||||||||||
500,000 | (1) | Term Loan, maturing September 29, 2016 | 502,500 | ||||||||||||||||||||||||
Mylan Laboratories, Inc. | Ba1 | BB+ | |||||||||||||||||||||||||
1,975,000 | (1) | Term Loan, maturing October 02, 2014 | 1,974,840 | ||||||||||||||||||||||||
Royalty Pharma | Baa2 | BBB– | |||||||||||||||||||||||||
1,496,124 | (1) | Term Loan, 2.539%, maturing April 16, 2013 | 1,486,063 | ||||||||||||||||||||||||
Valeant Pharmaceuticals International | Ba1 | BB+ | |||||||||||||||||||||||||
50,000 | (1) | Term Loan, maturing September 21, 2016 | 50,512 | ||||||||||||||||||||||||
200,000 | (1) | Term Loan, maturing September 21, 2016 | 202,047 | ||||||||||||||||||||||||
Vanguard Health Holdings Company II, LLC | Ba2 | BB– | |||||||||||||||||||||||||
1,500,000 | Term Loan, 5.000%, maturing January 29, 2016 | 1,490,781 | |||||||||||||||||||||||||
Warner Chilcott Company, LLC | Ba3 | BB | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing October 30, 2014 | 996,875 | ||||||||||||||||||||||||
13,708,088 | |||||||||||||||||||||||||||
Leisure, Amusement, Entertainment: 4.0% | |||||||||||||||||||||||||||
Cinemark USA, Inc. | Ba3 | BB– | |||||||||||||||||||||||||
1,994,975 | Term Loan, 3.553%, maturing April 29, 2016 | 1,992,838 | |||||||||||||||||||||||||
Live Nation Entertainment, Inc. | Ba2 | BB– | |||||||||||||||||||||||||
1,500,000 | (1) | Term Loan, maturing November 07, 2016 | 1,483,751 | ||||||||||||||||||||||||
Regal Cinemas Corporation | Ba3 | BB– | |||||||||||||||||||||||||
1,994,987 | Term Loan, 3.789%, maturing November 21, 2016 | 1,980,336 | |||||||||||||||||||||||||
5,456,925 | |||||||||||||||||||||||||||
Mining, Steel, Iron & Nonprecious Metals: 1.1% | |||||||||||||||||||||||||||
Novelis Corporation | Ba1 | BB– | |||||||||||||||||||||||||
380,260 | (1) | Term Loan, maturing July 06, 2014 | 368,852 | ||||||||||||||||||||||||
1,119,740 | (1) | Term Loan, maturing July 06, 2014 | 1,086,148 | ||||||||||||||||||||||||
1,455,000 | |||||||||||||||||||||||||||
Non-North American Cable: 1.4% | |||||||||||||||||||||||||||
UPC Broadband Holding, B.V. | Ba3 | B+ | |||||||||||||||||||||||||
2,000,000 | (1) | Term Loan, maturing December 30, 2016 | 1,953,000 | ||||||||||||||||||||||||
1,953,000 | |||||||||||||||||||||||||||
North American Cable: 5.7% | |||||||||||||||||||||||||||
Bresnan Communications, LLC | B1 | BB– | |||||||||||||||||||||||||
997,468 | Term Loan, 2.260%, maturing March 29, 2014 | 992,637 | |||||||||||||||||||||||||
Cequel Communications, LLC | Ba3 | BB– | |||||||||||||||||||||||||
2,000,000 | (1) | Term Loan, 2.258%, maturing November 05, 2013 | 1,948,213 | ||||||||||||||||||||||||
Charter Communications Operating, LLC | Ba1 | BB+ | |||||||||||||||||||||||||
1,500,000 | (1) | Term Loan, maturing March 06, 2014 | 1,466,714 | ||||||||||||||||||||||||
1,498,744 | (1) | Term Loan, 3.540%, maturing September 06, 2016 | 1,465,959 |
Bank Loan Ratings † (Unaudited) | |||||||||||||||||||||||||||
Principal Amount | Borrow\Tranche Description | | Moody’s | | S&P | | Fair Value | | |||||||||||||||||||
North American Cable: (continued) | |||||||||||||||||||||||||||
Insight Midwest Holdings, LLC | Ba3 | B+ | |||||||||||||||||||||||||
$ | 2,000,000 | Term Loan, 2.099%, maturing April 07, 2014 | $ | 1,924,642 | |||||||||||||||||||||||
7,798,165 | |||||||||||||||||||||||||||
Oil & Gas: 1.8% | |||||||||||||||||||||||||||
Enterprise GP Holdings, L.P. | Ba2 | BB– | |||||||||||||||||||||||||
1,000,000 | Term Loan, 2.780%, maturing November 10, 2014 | 995,000 | |||||||||||||||||||||||||
MEG Energy Corporation | B1 | BB+ | |||||||||||||||||||||||||
1,496,222 | Term Loan, 6.000%, maturing April 03, 2016 | 1,500,897 | |||||||||||||||||||||||||
2,495,897 | |||||||||||||||||||||||||||
Other Broadcasting and Entertainment: 1.8% | |||||||||||||||||||||||||||
Nielsen Finance, LLC | Ba3 | BB– | |||||||||||||||||||||||||
2,498,750 | (1) | Term Loan, 4.008%, maturing May 02, 2016 | 2,440,029 | ||||||||||||||||||||||||
2,440,029 | |||||||||||||||||||||||||||
Other Telecommunications: 3.0% | |||||||||||||||||||||||||||
Asurion Corporation | Ba3 | B+ | |||||||||||||||||||||||||
1,994,962 | Term Loan, 3.278%, maturing July 03, 2014 | 1,910,175 | |||||||||||||||||||||||||
MetroPCS Wireless, Inc. | Ba1 | BB– | |||||||||||||||||||||||||
673,469 | (1) | Term Loan, maturing November 04, 2016 | 667,742 | ||||||||||||||||||||||||
Time Warner Telecom Holdings, Inc. | Ba1 | B+ | �� | ||||||||||||||||||||||||
1,500,000 | (1) | Term Loan, maturing January 07, 2013 | 1,482,179 | ||||||||||||||||||||||||
4,060,096 | |||||||||||||||||||||||||||
Personal & Nondurable Consumer Products: 1.5% | |||||||||||||||||||||||||||
Advantage Sales & Marketing, Inc. | Ba3 | B+ | |||||||||||||||||||||||||
997,494 | Term Loan, 5.000%, maturing May 05, 2016 | 995,249 | |||||||||||||||||||||||||
Jarden Corporation | Ba1 | BB+ | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing January 26, 2015 | 1,001,425 | ||||||||||||||||||||||||
1,996,674 | |||||||||||||||||||||||||||
Personal, Food & Miscellaneous: 3.4% | |||||||||||||||||||||||||||
Advance Pierre Foods | B1 | B+ | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing September 29, 2016 | 990,000 | ||||||||||||||||||||||||
Dennys, Inc. | B1 | B+ | |||||||||||||||||||||||||
500,000 | (1) | Term Loan, maturing September 20, 2016 | 501,563 | ||||||||||||||||||||||||
N.E.W. Customer Services Companies, Inc. | Ba3 | B+ | |||||||||||||||||||||||||
978,102 | Term Loan, 6.000%, maturing March 05, 2016 | 974,842 | |||||||||||||||||||||||||
NBTY, Inc. | Ba3 | BB– | |||||||||||||||||||||||||
1,259,494 | (1) | Term Loan, maturing July 14, 2017 | 1,274,112 | ||||||||||||||||||||||||
OSI Restaurant Partners, Inc. | B3 | B+ | |||||||||||||||||||||||||
83,094 | (1) | Term Loan, maturing June 14, 2013 | 76,385 | ||||||||||||||||||||||||
916,906 | (1) | Term Loan, maturing June 14, 2014 | 842,865 | ||||||||||||||||||||||||
4,659,767 | |||||||||||||||||||||||||||
Printing & Publishing: 3.0% | |||||||||||||||||||||||||||
Cengage Learning, Inc. | B2 | B+ | |||||||||||||||||||||||||
1,996,144 | (1) | Term Loan, 2.540%, maturing July 03, 2014 | 1,798,117 | ||||||||||||||||||||||||
Quad/Graphics, Inc. | Ba2 | BB+ | |||||||||||||||||||||||||
1,500,000 | (1) | Term Loan, maturing April 14, 2016 | 1,477,500 | ||||||||||||||||||||||||
R.H. Donnelley Corporation | B1 | B | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing October 24, 2014 | 853,214 | ||||||||||||||||||||||||
4,128,831 | |||||||||||||||||||||||||||
Radio and TV Broadcasting: 2.3% | |||||||||||||||||||||||||||
CW Media Holdings, Inc. | Ba2 | BB+ | |||||||||||||||||||||||||
1,000,000 | (1) | Term Loan, maturing February 16, 2015 | 987,500 | ||||||||||||||||||||||||
Univision Communications, Inc. | B2 | B– | |||||||||||||||||||||||||
2,496,826 | Term Loan, 2.506%, maturing September 29, 2014 | 2,193,661 | |||||||||||||||||||||||||
3,181,161 |
Bank Loan Ratings † (Unaudited) | |||||||||||||||||||||||||||
Principal Amount | Borrow\Tranche Description | | Moody’s | | S&P | | Fair Value | | |||||||||||||||||||
Retail Stores: 5.9% | |||||||||||||||||||||||||||
Dollar General Corporation | Ba3 | BBB– | |||||||||||||||||||||||||
$ | 3,000,000 | Term Loan, 3.108%, maturing July 07, 2014 | $ | 2,951,717 | |||||||||||||||||||||||
Michaels Stores, Inc. | B2 | B | |||||||||||||||||||||||||
1,000,000 | Term Loan, 2.634%, maturing October 31, 2013 | 968,188 | |||||||||||||||||||||||||
1,500,000 | Term Loan, 4.884%, maturing July 31, 2016 | 1,473,542 | |||||||||||||||||||||||||
Neiman Marcus Group, Inc. | B2 | BB– | |||||||||||||||||||||||||
1,500,000 | Term Loan, 2.294%, maturing April 05, 2013 | 1,456,193 | |||||||||||||||||||||||||
Toys “R” Us, Inc. | B1 | BB– | |||||||||||||||||||||||||
1,250,000 | Term Loan, 6.000%, maturing August 17, 2016 | 1,254,130 | |||||||||||||||||||||||||
8,103,770 | |||||||||||||||||||||||||||
Utilities: 4.5% | |||||||||||||||||||||||||||
Calpine Corporation | B1 | B+ | |||||||||||||||||||||||||
2,500,000 | (1) | Term Loan, maturing March 29, 2014 | 2,447,394 | ||||||||||||||||||||||||
NRG Energy, Inc. | Baa3 | BB+ | |||||||||||||||||||||||||
1,333,333 | (1) | Term Loan, maturing August 31, 2015 | 1,334,000 | ||||||||||||||||||||||||
1,666,667 | (1) | Term Loan, maturing August 31, 2015 | 1,666,667 | ||||||||||||||||||||||||
Texas Competitive Electric Holdings Company, LLC | B1 | B+ | |||||||||||||||||||||||||
500,000 | (1) | Term Loan, maturing October 10, 2014 | 387,986 | ||||||||||||||||||||||||
500,000 | (1) | Term Loan, maturing October 10, 2014 | 386,702 | ||||||||||||||||||||||||
6,222,749 | |||||||||||||||||||||||||||
Total Loans (Cost $125,419,861) | 125,911,473 | ||||||||||||||||||||||||||
Other Corporate Debt: 0.7% | |||||||||||||||||||||||||||
Diversified / Conglomerate Manufacturing: 0.7% | |||||||||||||||||||||||||||
Flextronics International, Ltd. | Ba1 | BB+ | |||||||||||||||||||||||||
222,796 | (1) | Unsecured Term Loan, maturing October 01, 2014 | 212,325 | ||||||||||||||||||||||||
777,204 | (1) | Unsecured Term Loan, maturing October 01, 2014 | 740,675 | ||||||||||||||||||||||||
Total Other Corporate Debt (Cost $950,103) | 953,000 | ||||||||||||||||||||||||||
Shares | Market Value |
Short-term Investments: 51.7% | ||||||||||||||||||||||||||
Mutual Fund: 51.7% | ||||||||||||||||||||||||||
70,812,050 | State Street Institutional Liquid Reserves Fund — Institutional Class | $ | 70,812,050 | |||||||||||||||||||||||
Total Mutual Fund (Cost $70,812,050) | 70,812,050 | |||||||||||||||||||||||||
Total Investments (Cost $197,182,014)** | 144.2% | $ | 197,676,523 | |||||||||||||||||||||||
Other Assets and Liabilities — Net | (44.2) | (60,561,000 | ) | |||||||||||||||||||||||
Net Assets | 100.0% | $ | 137,115,523 | |||||||||||||||||||||||
* | 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. | |||||||||||||||||||||||||
† | Bank Loans rated below Baa by Moody’s Investor Services, Inc. are considered to be below investment grade. | |||||||||||||||||||||||||
(1) | Trade pending settlement. Contract rates do not take effect until settlement date. | |||||||||||||||||||||||||
** | For Federal Income Tax purposes cost of investments is the same as for financial statement purposes. | |||||||||||||||||||||||||
Net unrealized appreciation consists of the following: | ||||||||||||||||||||||||||
Gross Unrealized Appreciation | $ | 638,552 | ||||||||||||||||||||||||
Gross Unrealized Depreciation | (144,043 | ) | ||||||||||||||||||||||||
Net Unrealized Appreciation | $ | 494,509 |
Quoted Prices in Active Markets for Identical Investments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at 9/30/2010 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Asset Table | ||||||||||||||||||
Investments, at value | ||||||||||||||||||
Loans | $ | — | $ | 125,911,473 | $ | — | $ | 125,911,473 | ||||||||||
Other Corporate Debt | — | 953,000 | — | 953,000 | ||||||||||||||
Short-term Investments | 70,812,050 | — | — | 70,812,050 | ||||||||||||||
Total Investments, at value | $ | 70,812,050 | $ | 126,864,473 | $ | — | $ | 197,676,523 |
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
capabilities, as demonstrated by, among other things, its policies and procedures designed to prevent violations of the Federal securities laws, which had previously been approved by the Board in connection with its oversight of other funds in the ING Funds complex; (10) the information that had been provided by ING Investments at regular Board meetings with respect to its capabilities as a manager-of-managers in overseeing similar funds; and (11) “fall-out benefits” to ING Investments and its affiliates that were anticipated to arise from ING Investments’ management of the Fund.
ING Core Equity Research Fund
ING Real Estate Fund
ING Capital Allocation Fund
ING Corporate Leaders 100 Fund
ING Equity Dividend Fund
ING Growth Opportunities Fund
ING MidCap Opportunities Fund
ING Small Company Fund
ING SmallCap Opportunities Fund
ING Tactical Asset Allocation Fund
ING Index Plus LargeCap Fund
ING Index Plus MidCap Fund
ING Index Plus SmallCap Fund
ING Value Choice Fund
ING GNMA Income Fund
ING High Yield Bond Fund
ING Intermediate Bond Fund
ING Global Equity Dividend Fund
ING Global Natural Resources Fund
ING Global Real Estate Fund
ING Global Value Choice Fund
ING Alternative Beta Fund
ING Asia-Pacific Real Estate Fund
ING Emerging Countries Fund
ING European Real Estate Fund
ING Global Opportunities Fund
ING Greater China Fund
ING Index Plus International Equity Fund
ING International Capital Appreciation Fund
ING International Real Estate Fund
ING International SmallCap Multi-Manager Fund
ING International Value Fund
ING International Value Choice Fund
ING Russia Fund
ING Global Bond Fund
ING Diversified International Fund
ING Global Target Payment Fund
ING Senior Income Fund
ING Floating Rate Fund
ING Classic Money Market Fund
ING Money Market Fund
* | An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. |
ING Investments, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
ING Funds Services, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
ING Investments Distributor, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
BNY Mellon Investment Servicing (U.S.) Inc.
(formerly, PNC Global Investment Servicing (U.S.) Inc.)
301 Bellevue Parkway
Wilmington, Delaware 19809
State Street Bank and Trust Company
801 Pennsylvania Avenue
Kansas City, Missouri 64105
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006
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
| ||
Table of Contents
Item 2. | Code of Ethics. |
Not required for semi-annual filing.
Item 3. | Audit Committee Financial Expert. |
Not required for semi-annual filing.
Item 4. | Principal Accountant Fees and Services. |
Not required for semi-annual filing.
Item 5. | Audit Committee Of Listed Registrants. |
Not required for semi-annual filing.
Table of Contents
Item 6. | Schedule of Investments. |
For the Portfolios that have a complete Schedule of Investments, the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Table of Contents
ING GNMA INCOME FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Value | |||||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS: 105.2% |
| ||||||||||
| Federal Home Loan Mortgage Corporation##: 2.0% |
| ||||||||||
$ | 27,109,147 | S, ^ | 0.500%, due 07/15/36 | $ | 363,913 | |||||||
3,624,549 | S, ^ | 5.500%, due 09/15/35 | 620,799 | |||||||||
7,332,689 | 5.500%, due 02/01/40 | 7,783,445 | ||||||||||
5,184,361 | S | 6.000%, due 05/15/36 | 5,893,592 | |||||||||
43,117 | S | 7.000%, due 11/01/14 | 46,292 | |||||||||
127,057 | S | 7.500%, due 12/01/14 | 136,157 | |||||||||
50,919 | 7.500%, due 01/01/30 | 58,070 | ||||||||||
1,446,744 | S, ^ | 7.688%, due 10/25/23 | 277,266 | |||||||||
12,302 | S | 8.000%, due 01/01/30 | 14,172 | |||||||||
1,212,107 | 9.000%, due 12/17/30 | 1,414,939 | ||||||||||
28,637 | 9.500%, due 07/01/20 | 33,234 | ||||||||||
16,641,879 | ||||||||||||
| Federal National Mortgage Association##: 16.9% |
| ||||||||||
20,000,000 | W | 4.000%, due 07/25/39 | 20,562,500 | |||||||||
36,900,000 | W | 4.500%, due 10/15/35 | 38,433,626 | |||||||||
43,493,462 | 4.500%, due 09/01/40 | 45,355,994 | ||||||||||
14,128,182 | 5.500%, due 02/01/40-08/01/40 | 15,031,903 | ||||||||||
6,789,890 | S | 6.000%, due 02/25/36 | 7,225,852 | |||||||||
9,549,972 | 6.000%, due 11/25/31-04/25/32 | 10,460,430 | ||||||||||
21,959 | S | 6.500%, due 06/01/14 | 23,767 | |||||||||
320,417 | 6.500%, due 02/01/29 | 361,602 | ||||||||||
742,848 | 6.600%, due 07/01/27-06/01/28 | 838,378 | ||||||||||
27,218 | S | 7.000%, due 03/01/15 | 28,899 | |||||||||
59,665 | S | 7.500%, due 05/01/28 | 68,078 | |||||||||
2,700,948 | 8.000%, due 12/25/45 | 3,210,752 | ||||||||||
53,775 | S | 8.500%, due 08/01/15-09/01/15 | 57,404 | |||||||||
141,659,185 | ||||||||||||
| Government National Mortgage Association: 86.3% |
| ||||||||||
90,271,380 | S, ^ | 0.887%, due 01/16/50 | 4,942,358 | |||||||||
97,501,720 | S, ^ | 0.985%, due 11/16/46 | 4,192,623 | |||||||||
3,557,083 | S | 4.000%, due 05/20/33-08/20/35 | 3,689,886 | |||||||||
5,667,869 | 4.000%, due 05/15/40-09/15/40 | 5,873,146 | ||||||||||
30,000,000 | W | 4.500%, due 03/15/39 | 31,565,640 | |||||||||
19,002,400 | S | 4.500%, due 01/20/34-02/20/40 | 20,036,793 | |||||||||
3,574,932 | ^ | 4.500%, due 02/20/36-12/20/37 | 457,888 | |||||||||
70,020,438 | S, ^ | 5.000%, due 05/20/35-04/20/37 | 8,656,443 | |||||||||
97,667,836 | S | 5.000%, due 10/20/33-03/20/24 | 104,068,947 | |||||||||
2,156,236 | ^ | 5.000%, due 09/16/35 | 232,211 | |||||||||
87,496,793 | 5.000%, due 04/15/30-04/15/29 | 93,501,130 | ||||||||||
547,715 | 5.100%, due 04/20/32 | 587,874 | ||||||||||
1,704,717 | 5.250%, due 11/20/36-01/20/38 | 1,826,372 | ||||||||||
185,761 | 5.450%, due 02/15/29-10/15/29 | 201,214 | ||||||||||
4,750,629 | S, ^ | 5.500%, due 11/20/33 | 377,956 | |||||||||
24,331,157 | S | 5.500%, due 04/20/34-12/15/36 | 26,269,252 | |||||||||
138,214,488 | 5.500%, due 10/15/32-04/20/29 | 149,795,288 | ||||||||||
305,168 | 5.550%, due 06/15/27 | 320,063 | ||||||||||
32,564 | S | 5.600%, due 10/20/37 | 35,182 | |||||||||
2,619,188 | 5.600%, due 12/20/36-02/20/38 | 2,832,065 | ||||||||||
552,680 | 5.625%, due 04/15/39 | 596,406 | ||||||||||
9,665,851 | S | 5.630%, due 07/15/45 | 10,150,429 | |||||||||
484,504 | 5.680%, due 05/15/47 | 529,124 | ||||||||||
487,224 | S | 5.690%, due 11/15/42 | 520,596 | |||||||||
60,797 | S | 5.750%, due 01/20/29 | 66,426 | |||||||||
8,352,843 | 5.750%, due 07/20/38-07/20/29 | 9,219,863 | ||||||||||
5,560,305 | 5.950%, due 02/15/44 | 6,170,305 | ||||||||||
1,884,182 | 5.970%, due 11/15/31 | 2,087,822 | ||||||||||
16,871,723 | 5.980%, due 01/20/30-07/20/34 | 18,502,337 | ||||||||||
2,718,128 | S, ^ | 6.000%, due 01/20/34 | 443,033 |
Principal Amount | Value | |||||||||||
| Government National Mortgage Association: (continued) |
| ||||||||||
$ | 10,700,559 | S | 6.000%, due 09/15/32-02/15/29 | $ | 11,715,142 | |||||||
94,591,368 | 6.000%, due 02/15/32-12/15/29 | 103,244,127 | ||||||||||
409,521 | 6.125%, due 02/15/39-04/15/39 | 446,492 | ||||||||||
3,573,363 | 6.200%, due 02/20/30-12/20/29 | 3,976,285 | ||||||||||
19,374,628 | S, ^ | 6.243%, due 09/20/38 | 2,889,141 | |||||||||
104,663 | S | 6.250%, due 03/15/28-04/15/28 | 116,361 | |||||||||
589,967 | 6.250%, due 09/15/27-09/15/29 | 654,256 | ||||||||||
581,107 | 6.280%, due 01/20/26-05/20/26 | 640,329 | ||||||||||
456,674 | 6.490%, due 01/15/28 | 513,973 | ||||||||||
467,265 | S | 6.500%, due 09/20/34-03/15/28 | 519,678 | |||||||||
35,703,124 | 6.500%, due 08/20/31-07/20/29 | 39,385,459 | ||||||||||
2,806,948 | 6.600%, due 10/20/26-07/20/28 | 3,160,912 | ||||||||||
4,250 | S | 6.750%, due 08/15/28 | 4,831 | |||||||||
1,121,024 | 6.750%, due 04/20/37-11/15/28 | 1,248,627 | ||||||||||
2,112,553 | S | 7.000%, due 04/15/32-11/15/27 | 2,416,856 | |||||||||
23,830,210 | 7.000%, due 05/15/31-07/15/29 | 26,803,326 | ||||||||||
6,321,444 | 7.200%, due 03/15/39 | 7,070,053 | ||||||||||
5,564,918 | S, ^ | 7.243%, due 05/16/31 | 1,224,785 | |||||||||
23,276 | 7.250%, due 01/15/29 | 26,477 | ||||||||||
3,372,010 | S, ^ | 7.343%, due 10/16/29 | 646,076 | |||||||||
4,032,991 | 7.350%, due 03/15/43 | 4,505,939 | ||||||||||
1,588,288 | S | 7.500%, due 10/15/38-08/20/27 | 1,763,915 | |||||||||
695,175 | 7.500%, due 10/15/30-12/15/28 | 801,826 | ||||||||||
19,925 | S | 7.800%, due 05/15/19 | 22,618 | |||||||||
414,343 | S | 8.000%, due 03/20/24-03/15/28 | 487,642 | |||||||||
28,048 | S | 8.050%, due 07/15/19 | 31,711 | |||||||||
270,849 | S | 8.743%, due 04/20/34 | 290,385 | |||||||||
1,031,072 | S | 9.000%, due 01/15/31 | 1,118,553 | |||||||||
49,949 | 9.000%, due 05/15/16-07/15/16 | 55,341 | ||||||||||
6,715 | 9.500%, due 11/15/21 | 7,746 | ||||||||||
200,889 | 31.466%, due 04/20/31 | 330,434 | ||||||||||
723,867,968 | ||||||||||||
| Other U.S. Agency Obligations: 0.0% |
| ||||||||||
5,668 | Small Business Administration, 8.250%, due 11/01/11 | 5,777 | ||||||||||
5,777 | ||||||||||||
Total U.S. Government Agency Obligations | 882,174,809 | |||||||||||
| U.S. TREASURY OBLIGATIONS: 0.7% |
| ||||||||||
| U.S. Treasury Notes: 0.7% |
| ||||||||||
5,600,000 | 3.875%, due 08/15/40 | 5,789,874 | ||||||||||
Total U.S. Treasury Obligations | 5,789,874 | |||||||||||
Total Investments in Securities (Cost $855,540,764)* |
| 105.9 | % | $ | 887,964,683 | |||||||
Other Assets and Liabilities - Net | (5.9 | ) | (49,777,595 | ) | ||||||||
Net Assets | 100.0 | % | $ | 838,187,088 | ||||||||
## | 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. |
See Accompanying Notes to Financial Statements
Table of Contents
ING GNMA INCOME FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
W | Settlement is on a when-issued or delayed-delivery basis. |
S | All or a portion of this security has been identified by the Fund to cover future collateral requirements for applicable futures, options, swaps, foreign currency contracts and/or when-issued or delayed-delivery securities. |
^ | 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 |
Net unrealized appreciation consists of: | ||||
Gross Unrealized Appreciation | $ | 34,874,954 | ||
Gross Unrealized Depreciation | (2,451,035 | ) | ||
Net Unrealized Appreciation | $ | 32,423,919 | ||
See Accompanying Notes to Financial Statements
Table of Contents
ING HIGH YIELD BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Value | |||||||||||
| CORPORATE BONDS/NOTES: 96.1% |
| ||||||||||
| Consumer Discretionary: 27.0% |
| ||||||||||
$ | 555,000 | # | Accuride Corp., | $ | 585,525 | |||||||
265,000 | Affinia Group, Inc., | 274,275 | ||||||||||
255,000 | # | Affinia Group, Inc., | 284,963 | |||||||||
585,000 | Allbritton Communications Co., | 589,388 | ||||||||||
935,000 | AMC Entertainment, Inc., 11.000%, due 02/01/16 | 1,002,788 | ||||||||||
225,000 | # | American Axle & Manufacturing Holdings, Inc., | 247,500 | |||||||||
315,000 | American Axle & Manufacturing, Inc., | 299,644 | ||||||||||
33,151 | &, # | American Media Operations, Inc., | 33,814 | |||||||||
7,957 | &, # | American Media Operations, Inc., | 5,222 | |||||||||
625,000 | Ameristar Casinos, Inc., | 670,313 | ||||||||||
260,000 | ArvinMeritor, Inc., | 264,550 | ||||||||||
305,000 | ArvinMeritor, Inc., | 339,313 | ||||||||||
205,000 | Beazer Homes USA, Inc., | 192,956 | ||||||||||
535,000 | Bon-Ton Stores, Inc., | 529,650 | ||||||||||
455,000 | Cablevision Systems Corp., | 483,438 | ||||||||||
450,000 | Cablevision Systems Corp., | 486,563 | ||||||||||
775,000 | # | CCO Holdings LLC/CCO Holdings Capital Corp., | 789,531 | |||||||||
500,000 | # | CCO Holdings LLC/CCO Holdings Capital Corp., | 532,500 | |||||||||
420,000 | # | Cedar Fair L.P./Canada’s Wonderland Co/Magnum Management Corp., | 443,100 | |||||||||
805,000 | # | Cequel Communications Holdings I, LLC and Cequel Capital Corp., | 853,300 | |||||||||
485,000 | Clear Channel Communications, Inc., | 380,725 | ||||||||||
525,000 | Clear Channel Outdoor Holdings, Inc., | 562,313 | ||||||||||
265,000 | # | Cooper-Standard Automotive, Inc., | 276,263 | |||||||||
490,000 | DISH DBS Corp., | 529,813 | ||||||||||
410,000 | Goodyear Tire & Rubber Co., | 466,348 |
Principal Amount | Value | |||||||||||
| Consumer Discretionary: (continued) |
| ||||||||||
$ | 645,000 | Gray Television, Inc., | $ | 647,419 | ||||||||
270,000 | Hanesbrands, Inc., | 286,538 | ||||||||||
1,090,000 | Harrah’s Operating Co., Inc., | 876,088 | ||||||||||
1,055,000 | Harrah’s Operating Co., Inc., | 1,160,500 | ||||||||||
258,000 | JC Penney Corp., Inc., | 250,260 | ||||||||||
570,000 | K Hovnanian Enterprises, Inc., | 573,563 | ||||||||||
123,000 | KB Home, | 125,614 | ||||||||||
215,000 | KB Home, | 202,638 | ||||||||||
440,000 | Limited Brands, Inc., | 513,700 | ||||||||||
405,000 | LIN Television Corp., | 407,025 | ||||||||||
490,000 | # | LIN Television Corp., | 520,013 | |||||||||
430,000 | Macys Retail Holdings, Inc., | 427,850 | ||||||||||
105,000 | Macys Retail Holdings, Inc., | 107,363 | ||||||||||
195,000 | # | Marina District Finance Co., Inc., | 190,125 | |||||||||
260,000 | # | Marina District Finance Co., Inc., | 252,200 | |||||||||
315,000 | Marquee Holdings, Inc., | 259,875 | ||||||||||
850,000 | # | McJunkin Red Man Corp., | 752,250 | |||||||||
815,000 | Media General, Inc., | 886,313 | ||||||||||
243,000 | Mediacom Broadband, LLC, | 249,683 | ||||||||||
450,000 | Mediacom LLC/Mediacom Capital Corp., | 468,000 | ||||||||||
315,000 | MGM Resorts International, | 266,963 | ||||||||||
505,000 | # | MGM Resorts International, | 534,038 | |||||||||
380,000 | MGM Resorts International, | 424,650 | ||||||||||
405,000 | Michaels Stores, Inc., | 391,838 | ||||||||||
530,000 | Michaels Stores, Inc., | 578,363 | ||||||||||
36,087 | & | Neiman-Marcus Group, Inc., | 37,666 | |||||||||
600,000 | New Albertsons, Inc., | 489,000 | ||||||||||
375,000 | # | Nexstar Broadcasting, Inc./Mission Broadcasting, Inc., | 392,813 | |||||||||
403,987 | &, # | Nexstar Finance, Inc., | 390,857 |
See Accompanying Notes to Financial Statements
Table of Contents
ING HIGH YIELD BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Consumer Discretionary: (continued) |
| ||||||||||
$ | 685,000 | + | Nielsen Finance LLC/Nielsen Finance Co., | $ | 689,281 | |||||||
195,000 | Nielsen Finance LLC/Nielsen Finance Co., | 193,571 | ||||||||||
235,000 | Nielsen Finance LLC/Nielsen Finance Co., | 248,219 | ||||||||||
415,000 | Pinnacle Entertainment, Inc., | 410,850 | ||||||||||
540,000 | # | Rite Aid Corp., | 287,550 | |||||||||
195,000 | # | Scientific Games Corp., | 199,875 | |||||||||
120,000 | Seneca Gaming Corp., | 118,800 | ||||||||||
220,000 | Service Corp. International, | 229,900 | ||||||||||
675,000 | Sinclair Broadcast Group, Inc., | 677,700 | ||||||||||
455,000 | # | Sinclair Television Group, Inc., | 460,688 | |||||||||
385,000 | # | Sinclair Television Group, Inc., 9.250%, due 11/01/17 | 414,838 | |||||||||
895,000 | # | Sirius XM Radio, Inc., | 955,413 | |||||||||
200,000 | # | Sitel LLC/Sitel Finance Corp., | 161,000 | |||||||||
300,000 | Sonic Automotive, Inc., | 312,750 | ||||||||||
630,000 | Toys R Us Property Co. I LLC, | 715,050 | ||||||||||
430,000 | # | Toys R Us Property Co., LLC, | 456,875 | |||||||||
355,000 | United Components, Inc., | 362,100 | ||||||||||
495,000 | Universal City Development Partners Ltd./UCDP Finance, Inc., | 512,944 | ||||||||||
50,000 | Universal City Development Partners Ltd./UCDP Finance, Inc., | 54,375 | ||||||||||
410,000 | # | Visant Corp., | 429,475 | |||||||||
190,000 | WMG Holdings Corp., | 182,875 | ||||||||||
315,000 | # | Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., | 333,900 | |||||||||
32,195,029 | ||||||||||||
| Consumer Staples: 6.8% |
| ||||||||||
350,000 | Avis Budget Car Rental LLC/Avis Budget Finance, Inc., | 345,625 | ||||||||||
195,000 | Avis Budget Car Rental LLC/Avis Budget Finance, Inc., | 207,188 |
Principal Amount | Value | |||||||||||
| Consumer Staples: (continued) |
| ||||||||||
$ | 480,000 | Central Garden and Pet Co., | $ | 492,600 | ||||||||
245,000 | Cenveo Corp., | 243,469 | ||||||||||
560,000 | # | Cenveo Corp., | 575,400 | |||||||||
315,000 | Ceridian Corp., | 292,163 | ||||||||||
153,850 | & | Ceridian Corp., | 146,542 | |||||||||
265,000 | # | Cott Beverages USA, Inc., | 281,894 | |||||||||
435,000 | # | Cott Beverages, Inc., | 462,188 | |||||||||
574,000 | Hertz Corp., | 591,938 | ||||||||||
650,000 | JBS USA LLC/JBS USA Finance, Inc., | 754,000 | ||||||||||
295,000 | Prestige Brands, Inc., | 306,800 | ||||||||||
470,000 | # | RSC Equipment Rental, Inc., | 525,225 | |||||||||
420,000 | ServiceMaster Co, | 321,300 | ||||||||||
920,000 | &, # | ServiceMaster Co, | 984,400 | |||||||||
385,000 | # | Spectrum Brands Holdings, Inc., | 413,394 | |||||||||
485,000 | Stater Brothers Holdings, | 488,031 | ||||||||||
675,000 | # | Tops Markets, LLC, | 728,156 | |||||||||
8,160,313 | ||||||||||||
| Energy: 11.3% |
| ||||||||||
675,000 | Anadarko Petroleum Corp., | 677,934 | ||||||||||
200,000 | # | ATP Oil & Gas Corp., | 173,500 | |||||||||
475,000 | Berry Petroleum Co., | 537,938 | ||||||||||
290,000 | # | Brigham Exploration Co., | 300,150 | |||||||||
735,000 | Chaparral Energy, Inc., | 718,463 | ||||||||||
205,000 | # | Chaparral Energy, Inc., | 209,100 | |||||||||
200,000 | # | Consol Energy, Inc., | 217,500 | |||||||||
200,000 | # | Consol Energy, Inc., | 219,500 | |||||||||
625,000 | El Paso Corp., | 676,761 | ||||||||||
480,000 | Energy Transfer Equity L.P., | 507,600 | ||||||||||
380,000 | Gibson Energy ULC/GEP Midstream Finance Corp., | 423,700 | ||||||||||
775,000 | # | Hilcorp Energy I L.P./Hilcorp Finance Co., | 800,188 |
See Accompanying Notes to Financial Statements
Table of Contents
ING HIGH YIELD BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Energy: (continued) |
| ||||||||||
$ | 280,000 | International Coal Group, Inc., 9.125%, due 04/01/18 | $ | 299,600 | ||||||||
275,000 | # | Linn Energy LLC/Linn Energy Finance Corp., | 278,781 | |||||||||
360,000 | # | Linn Energy LLC/Linn Energy Finance Corp., | 383,400 | |||||||||
555,000 | Massey Energy Co., | 571,650 | ||||||||||
480,000 | McMoRan Exploration Co., | 530,400 | ||||||||||
215,000 | # | Murray Energy Corp., | 224,138 | |||||||||
325,000 | # | NFR Energy LLC/NFR Energy Finance Corp., | 326,625 | |||||||||
725,000 | OPTI Canada, Inc., | 554,625 | ||||||||||
35,000 | # | OPTI Canada, Inc., | 35,613 | |||||||||
115,000 | # | OPTI Canada, Inc., | 117,300 | |||||||||
245,000 | Patriot Coal Corp., | 246,225 | ||||||||||
190,000 | Penn Virginia Resource Partners L.P./Penn Virginia Resource Finance Corp., | 197,838 | ||||||||||
400,000 | # | PetroHawk Energy Corp., | 410,000 | |||||||||
535,000 | Pioneer Natural Resources Co., | 591,388 | ||||||||||
730,000 | Plains Exploration & Production Co., | 770,150 | ||||||||||
755,000 | # | SandRidge Energy, Inc., | 739,900 | |||||||||
230,000 | # | SandRidge Energy, Inc., | 228,850 | |||||||||
650,000 | Stone Energy Corp., | 641,875 | ||||||||||
245,000 | Swift Energy Co., | 243,775 | ||||||||||
600,000 | Swift Energy Co., | 627,750 | ||||||||||
13,482,217 | ||||||||||||
| Financials: 11.3% |
| ||||||||||
224,000 | Ally Financial, Inc., | 235,620 | ||||||||||
275,000 | # | Ally Financial, Inc., | 294,250 | |||||||||
1,435,000 | # | Ally Financial, Inc., | 1,571,325 | |||||||||
790,000 | American General Finance Corp., | 639,900 | ||||||||||
300,000 | American General Finance Corp., | 278,250 | ||||||||||
345,000 | American General Finance Corp., 6.900%, due 12/15/17 | 289,800 | ||||||||||
750,000 | Atlantic Broadband Finance, LLC, | 764,063 |
Principal Amount | Value | |||||||||||
| Financials: (continued) |
| ||||||||||
$ | 595,000 | CIT Group, Inc., | $ | 596,488 | ||||||||
1,130,000 | CIT Group, Inc., | 1,127,175 | ||||||||||
210,000 | CIT Group, Inc., | 207,900 | ||||||||||
865,000 | CIT Group, Inc., | 850,944 | ||||||||||
760,000 | Felcor Lodging L.P., | 829,350 | ||||||||||
600,000 | Ford Motor Credit Co., LLC, | 640,145 | ||||||||||
945,000 | Ford Motor Credit Co., LLC, | 1,087,684 | ||||||||||
690,000 | Ford Motor Credit Co., LLC, | 774,751 | ||||||||||
320,000 | International Lease Finance Corp., | 323,200 | ||||||||||
325,000 | International Lease Finance Corp., | 320,531 | ||||||||||
325,000 | International Lease Finance Corp., | 316,875 | ||||||||||
325,000 | International Lease Finance Corp., | 328,250 | ||||||||||
298,000 | # | International Lease Finance Corp., | 319,605 | |||||||||
465,000 | # | LBI Escrow Corp., | 509,175 | |||||||||
455,000 | # | Pinafore LLC/Pinafore, Inc., | 480,025 | |||||||||
355,000 | # | Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp., | 360,325 | |||||||||
305,000 | # | SSI Investments II/SSI Co-Issuer LLC, | 336,263 | |||||||||
13,481,894 | ||||||||||||
| Health Care: 8.2% |
| ||||||||||
295,000 | Apria Healthcare Group, Inc., | 329,663 | ||||||||||
525,000 | & | Biomet, Inc., | 585,375 | |||||||||
493,000 | Biomet, Inc., | 551,544 | ||||||||||
450,000 | # | Gentiva Health Services, Inc., | 482,625 | |||||||||
860,000 | HCA, Inc., | 924,500 | ||||||||||
905,000 | HCA, Inc., | 994,369 | ||||||||||
185,000 | Healthsouth Corp., | 189,163 | ||||||||||
440,000 | Healthsouth Corp., | 459,800 | ||||||||||
405,000 | # | Mylan, Inc./PA, | 435,881 | |||||||||
570,000 | Omnicare, Inc., | 585,675 | ||||||||||
320,000 | # | Radnet Management, Inc., | 294,400 | |||||||||
325,000 | Select Medical Corp., | 288,438 |
See Accompanying Notes to Financial Statements
Table of Contents
ING HIGH YIELD BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Health Care: (continued) |
| ||||||||||
$ | 315,000 | Select Medical Corp., | $ | 309,094 | ||||||||
670,000 | # | Tenet Healthcare Corp., | 670,000 | |||||||||
200,000 | # | UHS Escrow Corp., | 207,500 | |||||||||
220,000 | United Surgical Partners International, Inc., | 226,050 | ||||||||||
300,000 | & | United Surgical Partners International, Inc., | 310,500 | |||||||||
225,000 | US Oncology, Inc., | 239,625 | ||||||||||
775,000 | US Oncology, Inc., | 809,875 | ||||||||||
75,000 | # | Valeant Pharmaceuticals International, | 76,688 | |||||||||
245,000 | # | Valeant Pharmaceuticals International, | 251,125 | |||||||||
495,000 | Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc., | 504,900 | ||||||||||
9,726,790 | ||||||||||||
| Industrials: 6.9% |
| ||||||||||
455,000 | # | Amsted Industries, Inc., | 476,044 | |||||||||
310,000 | # | Bombardier, Inc., | 334,800 | |||||||||
310,000 | # | Bombardier, Inc., | 336,350 | |||||||||
185,000 | Case New Holland, Inc., | 201,881 | ||||||||||
160,000 | # | Case New Holland, Inc., | 174,600 | |||||||||
280,000 | Coleman Cable, Inc., | 287,700 | ||||||||||
1,290,000 | Z | Goodman Global Group, Inc., | 832,050 | |||||||||
505,000 | Harland Clarke Holdings Corp., | 481,013 | ||||||||||
535,000 | KAR Holdings, Inc., | 559,744 | ||||||||||
130,000 | Koppers, Inc., | 136,175 | ||||||||||
585,000 | # | Martin Midstream Partners L.P./Martin Midstream Finance Corp., | 590,850 | |||||||||
675,000 | Mueller Water Products, | 599,063 | ||||||||||
500,000 | # | NXP BV/NXP Funding, LLC, | 535,000 | |||||||||
400,000 | Ply Gem Industries, Inc., | 430,000 | ||||||||||
195,000 | # | Severstal Columbus LLC, | 205,725 | |||||||||
310,000 | # | SPX Corp., | 330,150 |
Principal Amount | Value | |||||||||||
| Industrials: (continued) |
| ||||||||||
$ | 270,000 | # | Stoneridge, Inc., | $ | 278,100 | |||||||
260,000 | United Rentals North America, Inc., | 263,250 | ||||||||||
540,000 | United Rentals North America, Inc., | 587,250 | ||||||||||
615,000 | WCA Waste Corp., | 639,600 | ||||||||||
8,279,345 | ||||||||||||
| Information Technology: 4.5% |
| ||||||||||
245,000 | # | Advanced Micro Devices, Inc., | 254,188 | |||||||||
245,000 | # | Aspect Software, Inc., | 255,719 | |||||||||
75,000 | Brocade Communications Systems, Inc., | 79,125 | ||||||||||
305,000 | First Data Corp., | 250,863 | ||||||||||
315,859 | & | First Data Corp., | 257,030 | |||||||||
405,000 | First Data Corp., | 293,625 | ||||||||||
585,000 | # | Freescale Semiconductor, Inc., | 589,388 | |||||||||
432,000 | # | Insight.com, | 461,160 | |||||||||
320,000 | Iron Mountain, Inc., | 339,600 | ||||||||||
405,000 | Jabil Circuit, Inc., | 446,006 | ||||||||||
95,000 | # | JDA Software Group, Inc., | 101,175 | |||||||||
400,000 | # | Kemet Corp., | 420,500 | |||||||||
390,000 | Seagate Technology, Inc., | 399,750 | ||||||||||
134,000 | Sensata Technologies BV, | 139,360 | ||||||||||
649,000 | SunGard Data Systems, Inc., | 666,036 | ||||||||||
396,000 | SunGard Data Systems, Inc., | 418,770 | ||||||||||
5,372,295 | ||||||||||||
| Materials: 6.6% |
| ||||||||||
380,000 | # | ABI Escrow Corp., | 388,550 | |||||||||
325,000 | Berry Plastics Corp., | 336,375 | ||||||||||
270,000 | Berry Plastics Corp., | 262,575 | ||||||||||
75,000 | CF Industries, Inc., | 80,906 | ||||||||||
75,000 | CF Industries, Inc., | 82,219 | ||||||||||
220,000 | # | Chemtura Corp., | 230,450 | |||||||||
41,000 | Domtar Corp., | 43,460 |
See Accompanying Notes to Financial Statements
Table of Contents
ING HIGH YIELD BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Materials: (continued) |
| ||||||||||
$ | 145,000 | Ferro Corp., | $ | 151,163 | ||||||||
270,000 | Georgia-Pacific Corp., | 284,850 | ||||||||||
280,000 | Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, | 275,800 | ||||||||||
500,000 | Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, | 522,500 | ||||||||||
441,000 | Huntsman International, LLC, | 449,820 | ||||||||||
205,000 | Huntsman International, LLC, | 213,200 | ||||||||||
195,000 | # | Huntsman International, LLC, | 202,800 | |||||||||
51,372 | & | Momentive Performance Materials, Inc., | 52,399 | |||||||||
451,000 | Momentive Performance Materials, Inc., | 511,885 | ||||||||||
460,377 | Nortek, Inc., | 491,452 | ||||||||||
490,000 | Nova Chemicals Corp., | 518,175 | ||||||||||
310,000 | Nova Chemicals Corp., | 330,538 | ||||||||||
290,000 | # | Plastipak Holdings, Inc., | 323,350 | |||||||||
275,000 | PolyOne Corp., | 284,281 | ||||||||||
325,000 | Solo Cup Co., | 281,125 | ||||||||||
500,000 | Solo Cup Co./Solo Cup Operating Corp., | 520,000 | ||||||||||
350,000 | Solutia, Inc., | 384,125 | ||||||||||
295,000 | # | Steel Dynamics, Inc., | 307,538 | |||||||||
230,000 | Verso Paper Holdings LLC/Verso Paper, Inc., | 253,000 | ||||||||||
75,000 | # | Vertellus Specialties, Inc., | 78,000 | |||||||||
7,860,536 | ||||||||||||
| Telecommunication Services: 8.8% |
| ||||||||||
690,000 | Cincinnati Bell, Inc., | 693,450 | ||||||||||
590,000 | Cincinnati Bell, Inc., | 578,200 | ||||||||||
270,000 | # | Clearwire Communications, LLC/Clearwire Finance, Inc., | 292,275 | |||||||||
510,000 | Cricket Communications, Inc., | 543,788 | ||||||||||
680,000 | Frontier Communications Co., | 728,450 | ||||||||||
200,000 | Frontier Communications Corp., | 219,750 |
Principal Amount | Value | |||||||||||
| Telecommunication Services: (continued) |
| ||||||||||
$ | 510,000 | Frontier Communications Corp., | $ | 565,463 | ||||||||
210,000 | Intelsat Intermediate Holding Co., Ltd., | 218,400 | ||||||||||
45,000 | # | Intelsat Jackson Holdings Ltd., | 49,050 | |||||||||
495,000 | Intelsat Ltd., | 493,144 | ||||||||||
105,000 | Intelsat Ltd., | 109,200 | ||||||||||
345,000 | Intelsat Luxembourg S.A., | 371,306 | ||||||||||
1,265,879 | & | Intelsat Luxembourg S.A., | 1,378,226 | |||||||||
18,024 | & | iPCS, Inc., | 17,258 | |||||||||
480,000 | MetroPCS Wireless, Inc., | 496,800 | ||||||||||
650,000 | Nextel Communications, Inc., | 650,000 | ||||||||||
615,000 | Nextel Communications, Inc., | 621,150 | ||||||||||
385,000 | Qwest Communications International, Inc., | 394,625 | ||||||||||
420,000 | Sprint Capital Corp., | 386,400 | ||||||||||
420,000 | Sprint Capital Corp., | 443,100 | ||||||||||
295,000 | # | West Corp., | 295,000 | |||||||||
255,000 | West Corp., | 268,069 | ||||||||||
330,000 | West Corp., | 352,275 | ||||||||||
370,000 | Windstream Corp., | 364,450 | ||||||||||
10,529,829 | ||||||||||||
| Utilities: 4.7% |
| ||||||||||
360,000 | AES Corp., | 390,600 | ||||||||||
83,000 | # | AES Corp., | 84,453 | |||||||||
290,000 | # | Calpine Corp., | 299,425 | |||||||||
450,000 | Edison Mission Energy, | 327,375 | ||||||||||
120,000 | Edison Mission Energy, | 81,300 | ||||||||||
1,015,000 | # | Energy Future Holdings Corp., | 1,012,726 | |||||||||
865,000 | # | Foresight Energy LLC/Foresight Energy Corp., | 895,275 | |||||||||
689,266 | Homer City Funding, LLC, | 630,678 | ||||||||||
308,913 | Midwest Generation, LLC, | 305,437 | ||||||||||
475,000 | Mirant Americas Generation, LLC, | 452,438 |
See Accompanying Notes to Financial Statements
Table of Contents
ING HIGH YIELD BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Utilities: (continued) |
| ||||||||||
$ | 1,140,000 | NRG Energy, Inc., | $ | 1,175,625 | ||||||||
5,655,332 | ||||||||||||
Total Corporate Bonds/Notes | 114,743,580 | |||||||||||
Shares | Value | |||||||||||
| COMMON STOCK: 0.0% |
| ||||||||||
| Consumer Discretionary: 0.0% |
| ||||||||||
5,810 | @, I, X | American Media Stock Certificates | 6 | |||||||||
6 | ||||||||||||
| Materials: 0.0% |
| ||||||||||
760 | Nortek, Inc. | 30,495 | ||||||||||
30,495 | ||||||||||||
| Telecommunication Services: 0.0% |
| ||||||||||
264 | @ | Completel Europe NV | 9,994 | |||||||||
9,994 | ||||||||||||
Total Common Stock | 40,495 | |||||||||||
Total Long-Term Investments | 114,784,075 | |||||||||||
| SHORT-TERM INVESTMENTS: 3.3% |
| ||||||||||
| Affiliated Mutual Fund: 3.3% |
| ||||||||||
3,908,000 | ING Institutional Prime Money Market Fund - Class I | $ | 3,908,000 | |||||||||
Total Short-Term Investments | 3,908,000 | |||||||||||||
Total Investments in Securities | 99.4 | % | $ | 118,692,075 | ||||||||||
Other Assets and | 0.6 | 656,976 | ||||||||||||
Net Assets | 100.0 | % | $ | 119,349,051 | ||||||||||
@ | Non-income producing security |
& | Payment-in-kind |
+ | Step-up basis bonds. Interest rates shown reflect current and next coupon rates. |
# | 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. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
I | Illiquid security |
X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
* | Cost for federal income tax purposes is |
Net unrealized appreciation consists of: | ||||
Gross Unrealized Appreciation | $ | 7,898,354 | ||
Gross Unrealized Depreciation | (859,771 | ) | ||
Net Unrealized Appreciation | $ | 7,038,583 |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) |
Principal Amount | Value | |||||||||||
| CORPORATE BONDS/NOTES: 36.3% |
| ||||||||||
| Consumer Discretionary: 5.5% |
| ||||||||||
$ | 2,065,000 | S | AMC Entertainment, Inc., | $ | 2,186,319 | |||||||
1,420,000 | Cablevision Systems Corp., | 1,569,100 | ||||||||||
769,000 | S | Comcast Corp., | 889,349 | |||||||||
97,000 | S | Comcast Corp., | 114,619 | |||||||||
2,512,000 | S | Comcast Corp., | 2,992,209 | |||||||||
456,000 | #, S | COX Communications, Inc., | 526,540 | |||||||||
614,000 | #, S | COX Communications, Inc., | 719,650 | |||||||||
1,255,000 | # | Cox Enterprises, Inc., | 1,476,241 | |||||||||
1,966,000 | S | DirecTV Holdings, LLC, | 2,131,968 | |||||||||
131,000 | DirecTV Holdings, LLC, | 135,770 | ||||||||||
1,080,000 | S | DISH DBS Corp., | 1,140,749 | |||||||||
1,415,000 | S | Hanesbrands, Inc., | 1,501,669 | |||||||||
2,975,000 | # | Hyatt Hotels Corp., | 3,314,915 | |||||||||
1,885,000 | S | Limited Brands, Inc., | 2,200,738 | |||||||||
1,475,000 | # | NBC Universal, Inc., | 1,477,158 | |||||||||
517,000 | # | NBC Universal, Inc., | 546,297 | |||||||||
738,000 | # | NBC Universal, Inc., | 748,555 | |||||||||
1,419,000 | # | NBC Universal, Inc., | 1,535,331 | |||||||||
770,000 | # | NBC Universal, Inc., | 794,852 | |||||||||
498,000 | # | NBC Universal, Inc., | 544,114 | |||||||||
1,509,000 | S | News America, Inc., | 1,630,299 | |||||||||
848,000 | S | News America, Inc., | 978,729 | |||||||||
2,040,000 | S | Pinnacle Entertainment, Inc., | 2,175,150 | |||||||||
805,000 | # | QVC, Inc., 7.500%, due 10/01/19 | 845,250 | |||||||||
535,000 | S | Service Corp. International, | 568,438 | |||||||||
227,000 | S | Time Warner Cable, Inc., | 238,505 | |||||||||
789,000 | S | Time Warner Cable, Inc., | 1,043,591 | |||||||||
648,000 | S | Time Warner Entertainment Co. LP, | 842,245 | |||||||||
3,579,000 | S | Time Warner, Inc., | 4,485,403 | |||||||||
863,000 | S | Toll Brothers Finance Corp., | 894,597 |
Principal Amount | Value | |||||||||||
| Consumer Discretionary: (continued) |
| ||||||||||
$ | 2,025,000 | Toys R Us Property Co. I LLC, | $ | 2,298,375 | ||||||||
1,101,000 | S | Viacom, Inc., | 1,183,600 | |||||||||
1,405,000 | Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., | 1,513,888 | ||||||||||
45,244,213 | ||||||||||||
| Consumer Staples: 2.1% |
| ||||||||||
2,496,000 | S | Altria Group, Inc., | 3,383,677 | |||||||||
576,000 | # | Anheuser-Busch InBev Worldwide, Inc., | 647,133 | |||||||||
736,000 | S | CVS Caremark Corp., | 815,386 | |||||||||
419,000 | S | CVS Caremark Corp., | 509,310 | |||||||||
1,732,000 | # | JBS Finance II Ltd., | 1,794,785 | |||||||||
922,000 | S | Kraft Foods, Inc., | 1,091,299 | |||||||||
732,000 | S | Kraft Foods, Inc., | 878,226 | |||||||||
1,754,000 | S | Lorillard Tobacco Co., | 1,858,505 | |||||||||
2,020,000 | &, # | ServiceMaster Co, | 2,161,400 | |||||||||
1,550,000 | # | Smithfield Foods, Inc., | 1,790,250 | |||||||||
315,000 | S | TreeHouse Foods, Inc., | 339,413 | |||||||||
1,840,000 | S | Tyson Foods, Inc., | 2,044,700 | |||||||||
17,314,084 | ||||||||||||
| Energy: 4.1% | |||||||||||
1,185,000 | S | Anadarko Petroleum Corp., | 1,307,666 | |||||||||
1,575,000 | Arch Coal, Inc., | 1,744,313 | ||||||||||
2,033,000 | Baker Hughes, Inc., | 2,125,585 | ||||||||||
300,000 | # | Consol Energy, Inc., | 326,250 | |||||||||
300,000 | # | Consol Energy, Inc., | 329,250 | |||||||||
1,523,000 | S | Enbridge Energy Partners, | 2,080,021 | |||||||||
1,244,000 | S | Energy Transfer Partners, | 1,652,900 | |||||||||
774,000 | S | Enterprise Products Operating LLC, | 839,757 | |||||||||
1,194,000 | Enterprise Products Operating LLC, | 1,331,967 | ||||||||||
1,800,000 | ±, I, X | Greater Ohio Ethanol, LLC, | — | |||||||||
2,200,000 | ±, I, X | Greater Ohio Ethanol, LLC, | — |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Energy: (continued) | |||||||||||
$ | 2,022,000 | S | Hess Corp., | $ | 2,117,608 | |||||||
1,280,000 | Kazatomprom, | 1,388,800 | ||||||||||
993,000 | # | KazMunaiGaz Finance Sub BV, | 1,099,748 | |||||||||
2,045,000 | S | Newfield Exploration Co., | 2,183,038 | |||||||||
906,000 | S | Northwest Pipeline Corp., | 1,095,302 | |||||||||
277,964 | ±, I, X | PEA Lima, LLC, | — | |||||||||
1,769,000 | #, S | Petroleos Mexicanos, | 1,941,354 | |||||||||
1,350,000 | S | Pioneer Natural Resources Co., | 1,492,287 | |||||||||
1,717,000 | S | Plains All American Pipeline LP, | 1,899,464 | |||||||||
1,920,000 | S | Plains Exploration & Production Co., | 2,107,200 | |||||||||
444,000 | Pride International, Inc., | 485,625 | ||||||||||
1,387,000 | Pride International, Inc., | 1,537,836 | ||||||||||
245,052 | Tengizchevroil Finance Co. S.A.RL, | 259,143 | ||||||||||
727,000 | S | Total Capital S.A., | 763,528 | |||||||||
1,262,000 | S | Transcontinental Gas Pipe Line Corp., | 1,476,811 | |||||||||
959,000 | Weatherford International Ltd. Bermuda, | 982,269 | ||||||||||
969,000 | Weatherford International Ltd. Bermuda, | 1,013,282 | ||||||||||
587,000 | S | Williams Partners L.P., | 639,312 | |||||||||
34,220,316 | ||||||||||||
| Financials: 12.3% |
| ||||||||||
3,513,600 | Aegon NV, | 2,272,860 | ||||||||||
816,000 | Agile Property Holdings Ltd., | 844,560 | ||||||||||
1,448,000 | American Express Credit Corp., | 1,458,757 | ||||||||||
1,203,000 | S | American International Group, Inc., | 1,251,120 | |||||||||
784,000 | S | AvalonBay Communities, Inc., | 883,382 | |||||||||
1,599,000 | #, L | Banco Bradesco S.A./Cayman Islands, | 1,630,980 |
Principal Amount | Value | |||||||||||
| Financials: (continued) |
| ||||||||||
$ | 624,000 | # | Banco de Credito del Peru, | $ | 633,360 | |||||||
1,314,000 | S | Bank of America Corp., | 1,357,311 | |||||||||
2,317,000 | #, S | Barclays Bank PLC, | 2,516,424 | |||||||||
1,458,000 | S | Capital One Bank USA NA, | 1,866,428 | |||||||||
1,724,000 | S | Capital One Capital V, | 1,877,005 | |||||||||
6,178,000 | Citi Credit, | 8,553,036 | ||||||||||
2,045,000 | S | Citigroup, Inc., | 2,119,861 | |||||||||
884,000 | S | Citigroup, Inc., | 972,791 | |||||||||
1,468,000 | S | Citigroup, Inc., | 1,817,851 | |||||||||
1,277,000 | #, S | Corestates Capital Trust I, | 1,317,514 | |||||||||
905,000 | Country Garden Holdings Co., | 963,825 | ||||||||||
2,604,000 | S | Credit Suisse/Guernsey, | 2,488,448 | |||||||||
2,013,000 | S | Discover Bank/Greenwood DE, | 2,379,118 | |||||||||
2,174,000 | # | Fibria Overseas Finance Ltd, | 2,318,028 | |||||||||
2,970,000 | S | Fifth Third Bancorp., | 3,541,764 | |||||||||
1,942,000 | First Tennessee Bank NA, | 1,940,081 | ||||||||||
1,945,000 | S | Ford Motor Credit Co., LLC, | 2,238,672 | |||||||||
799,000 | S | General Electric Capital Corp., | 814,251 | |||||||||
1,425,000 | S | General Electric Capital Corp., | 1,606,183 | |||||||||
1,253,000 | S | Genworth Financial, Inc., | 1,279,596 | |||||||||
739,000 | S | Genworth Financial, Inc., | 783,792 | |||||||||
845,000 | S | Goldman Sachs Group, Inc., | 865,480 | |||||||||
2,754,000 | S | Goldman Sachs Group, Inc., | 2,908,136 | |||||||||
2,116,000 | S | Goldman Sachs Group, Inc., | 2,374,965 | |||||||||
710,000 | S | Hartford Financial Services Group, | 723,409 | |||||||||
1,326,000 | S | Hartford Financial Services Group, | 1,399,064 | |||||||||
1,592,000 | HSBC Bank USA NA, | 1,663,715 | ||||||||||
3,071,000 | HSBC USA, Inc., | 3,074,630 | ||||||||||
964,000 | # | Iberdrola Finance Ireland Ltd., | 991,241 | |||||||||
3,365,000 | # | Iberdrola Finance Ireland Ltd., | 3,366,800 |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Financials: (continued) |
| ||||||||||
$ | 870,000 | International Lease Finance Corp., | $ | 848,250 | ||||||||
908,000 | S | International Lease Finance Corp., | 914,810 | |||||||||
1,037,000 | # | International Lease Finance Corp., | 1,122,553 | |||||||||
1,062,000 | J.P. Morgan Chase Bank NA, | 1,204,323 | ||||||||||
410,000 | # | LBI Escrow Corp., | 448,950 | |||||||||
732,000 | S | Lincoln National Corp., | 943,138 | |||||||||
1,341,000 | S | Merrill Lynch & Co., Inc., | 1,429,049 | |||||||||
1,500,000 | S | Morgan Stanley, | 1,551,216 | |||||||||
1,513,000 | S | Morgan Stanley, | 1,743,070 | |||||||||
2,425,000 | S | National City Preferred Capital Trust I, | 2,701,625 | |||||||||
19 | I | Nordea Kredit Realkreditaktieselskab, | 4 | |||||||||
1,729,000 | # | Pacific Life Insurance Co., | 2,210,613 | |||||||||
134,016 | #, S | Power Receivable Finance, LLC, | 134,059 | |||||||||
808,000 | S | ProLogis, | 795,714 | |||||||||
920,000 | S | ProLogis, | 929,964 | |||||||||
3,121,000 | S | Protective Life Corp., | 3,431,374 | |||||||||
1,660,000 | # | Rabobank, | 2,164,389 | |||||||||
805,000 | # | Reynolds Group DL Escrow, Inc./Reynolds Group Escrow LLC, | 823,113 | |||||||||
880,000 | S | SLM Corp., | 856,988 | |||||||||
1,110,000 | S | SLM Corp., | 1,103,287 | |||||||||
1,583,000 | ±, S, I, X | Twin Reefs Pass-through Trust, | — | |||||||||
1,176,000 | # | Voto-Votorantim Ltd, | 1,246,560 | |||||||||
1,035,000 | VTB Capital S.A., | 1,064,756 | ||||||||||
2,207,000 | S | Wachovia Bank NA, | 2,513,201 |
Principal Amount | Value | |||||||||||
| Financials: (continued) |
| ||||||||||
$ | 1,490,000 | S | Wells Fargo Capital XIII, | $ | 1,553,325 | |||||||
881,000 | # | Xstrata Finance Canada Ltd, | 923,373 | |||||||||
101,752,142 | ||||||||||||
| Health Care: 0.6% |
| ||||||||||
1,395,000 | S | HCA, Inc., | 1,499,625 | |||||||||
585,000 | HCA, Inc., | 642,769 | ||||||||||
1,054,000 | S | US Oncology, Inc., | 1,122,510 | |||||||||
1,787,000 | S | WellPoint, Inc., | 1,855,937 | |||||||||
5,120,841 | ||||||||||||
| Industrials: 1.2% |
| ||||||||||
900,000 | # | Bombardier, Inc., | 972,000 | |||||||||
900,000 | # | Bombardier, Inc., | 976,500 | |||||||||
1,250,000 | S | Case New Holland, Inc., | 1,364,063 | |||||||||
2,321,000 | S | General Electric Co., | 2,616,236 | |||||||||
754,000 | # | Kazatomprom, | 818,090 | |||||||||
696,000 | S | RR Donnelley & Sons Co., | 727,397 | |||||||||
1,864,000 | S | RR Donnelley & Sons Co., | 2,172,019 | |||||||||
9,646,305 | ||||||||||||
| Information Technology: 1.5% |
| ||||||||||
150,000 | S, L | Brocade Communications Systems, Inc., | 156,750 | |||||||||
1,730,000 | S | Brocade Communications Systems, Inc., | 1,825,150 | |||||||||
1,980,000 | S | Crown Castle International Corp., | 2,118,600 | |||||||||
595,000 | # | Expedia, Inc., | 604,669 | |||||||||
1,365,000 | S | Jabil Circuit, Inc., | 1,503,206 | |||||||||
1,863,000 | # | Oracle Corp., | 2,011,492 | |||||||||
1,935,000 | S | Seagate Technology, Inc., | 1,983,375 | |||||||||
789,000 | Symantec Corp., | 793,772 | ||||||||||
657,000 | S | Xerox Corp., | 706,123 | |||||||||
307,000 | S | Xerox Corp., | 344,242 | |||||||||
12,047,379 | ||||||||||||
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Materials: 3.3% |
| ||||||||||
$ | 1,706,000 | S | Alcoa, Inc., | $ | 1,757,248 | |||||||
185,000 | S | ArcelorMittal, | 186,798 | |||||||||
1,878,000 | S | ArcelorMittal, | 1,924,526 | |||||||||
2,481,000 | S | ArcelorMittal, | 3,193,781 | |||||||||
795,000 | Celulosa Arauco y Constitucion S.A., | 945,768 | ||||||||||
702,000 | # | Chevron Phillips Chemical Co. LLC, | 812,525 | |||||||||
1,109,000 | # | Chevron Phillips Chemical Co. LLC, | 1,405,856 | |||||||||
1,054,000 | Domtar Corp., | 1,317,500 | ||||||||||
1,510,000 | S | Dow Chemical Co., | 1,765,164 | |||||||||
1,191,000 | # | Gerdau Trade, Inc., | 1,212,882 | |||||||||
1,865,000 | Gold Fields Ltd., | 1,851,889 | ||||||||||
1,085,000 | # | Inversiones CMPC S.A., | 1,191,569 | |||||||||
1,730,000 | S | Nova Chemicals Corp., | 1,829,475 | |||||||||
350,000 | S | Nova Chemicals Corp., | 373,188 | |||||||||
1,114,000 | S | Rio Tinto Finance USA Ltd., | 1,376,483 | |||||||||
1,240,000 | S | Steel Dynamics, Inc., | 1,295,800 | |||||||||
406,000 | Teck Resources Ltd., | 427,382 | ||||||||||
1,950,000 | S | Teck Resources Ltd., | 2,371,861 | |||||||||
983,000 | Vale Overseas Ltd., | 1,020,196 | ||||||||||
506,000 | Vale Overseas Ltd., | 582,386 | ||||||||||
26,842,277 | ||||||||||||
| Telecommunication Services: 2.3% |
| ||||||||||
499,000 | S | American Tower Corp., | 512,067 | |||||||||
3,510,000 | S | AT&T, Inc., | 3,580,718 | |||||||||
1,576,000 | S | AT&T, Inc., | 1,839,225 | |||||||||
394,000 | S | CenturyTel, Inc., | 386,612 | |||||||||
500,000 | Frontier Communications Corp., | 542,500 | ||||||||||
730,000 | S | Frontier Communications Corp., | 801,175 | |||||||||
1,949,000 | # | Intelsat Subsidiary Holding Co., Ltd., | 2,017,215 | |||||||||
980,000 | S | Nextel Communications, Inc., | 980,000 |
Principal Amount | Value | |||||||||||
| Telecommunication Services: (continued) |
| ||||||||||
$ | 1,015,000 | # | Qwest Communications International, Inc., | $ | 1,070,825 | |||||||
1,054,000 | S | Qwest Communications International, Inc., | 1,080,350 | |||||||||
481,000 | Qwest Corp., | 527,898 | ||||||||||
580,000 | S | Sprint Nextel Corp., | 575,650 | |||||||||
2,223,000 | Telecom Italia Capital S.A., | 2,390,105 | ||||||||||
726,000 | S | Verizon Communications, Inc., | 1,067,971 | |||||||||
378,000 | VIP FIN (Vimpelcom), | 435,645 | ||||||||||
1,270,000 | #, L | Windstream Corp., | 1,320,800 | |||||||||
19,128,756 | ||||||||||||
| Utilities: 3.4% |
| ||||||||||
1,700,000 | S | AES Corp., | 1,844,500 | |||||||||
1,467,000 | # | Allegheny Energy Supply Co. LLC, | 1,520,029 | |||||||||
1,191,000 | S | Ameren Corp., | 1,380,781 | |||||||||
309,000 | L | Ameren Energy Generating Co., | 305,917 | |||||||||
1,043,000 | S | CMS Energy Corp., | 1,103,253 | |||||||||
1,249,000 | # | Duquesne Light Holdings, Inc., | 1,272,659 | |||||||||
1,189,000 | # | EDP Finance BV, | 1,138,765 | |||||||||
991,000 | # | EDP Finance BV, | 1,020,936 | |||||||||
1,660,000 | # | Enel Finance International S.A., | 1,722,298 | |||||||||
995,000 | # | Enel Finance International S.A., | 1,130,066 | |||||||||
1,130,000 | Entergy Corp., | 1,128,482 | ||||||||||
782,000 | S | Entergy Texas, Inc., | 957,084 | |||||||||
2,126,000 | Exelon Generation Co. LLC, | 2,132,601 | ||||||||||
696,000 | S | FirstEnergy Solutions Corp., | 748,838 | |||||||||
1,180,000 | S | Indiana Michigan Power, | 1,451,317 | |||||||||
812,000 | S | Jersey Central Power and Light, | 1,009,919 | |||||||||
289,515 | #, S | Juniper Generation, LLC, | 273,559 | |||||||||
618,000 | S | Metropolitan Edison, | 775,647 | |||||||||
709,000 | S | Nevada Power Co., | 881,274 | |||||||||
645,000 | S | Nisource Finance Corp., | 731,813 |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Utilities: (continued) |
| ||||||||||
$ | 1,318,000 | S | Oncor Electric Delivery Co., | $ | 1,723,157 | |||||||
2,275,000 | S | Sempra Energy, | 2,725,243 | |||||||||
1,169,000 | S | Southwestern Electric Power, | 1,282,780 | |||||||||
28,260,918 | ||||||||||||
Total Corporate Bonds/Notes | 299,577,231 | |||||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS: 19.4% |
| ||||||||||
| Federal Home Loan Mortgage Corporation##: 8.9% |
| ||||||||||
196,685 | S | 0.607%, due 02/15/32 | 197,151 | |||||||||
1,481,474 | S | 3.357%, due 03/15/38 | 1,493,038 | |||||||||
5,841,000 | W | 4.500%, due 10/15/35 | 6,075,551 | |||||||||
3,311,702 | S, ^ | 4.888%, due 03/15/33 | 3,621,416 | |||||||||
400,007 | S | 4.934%, due 04/01/35 | 425,033 | |||||||||
3,152,488 | S, ^ | 5.000%, due 05/15/17-01/15/29 | 155,128 | |||||||||
12,602,563 | S | 5.000%, due 09/15/31-12/15/17 | 13,278,306 | |||||||||
248,992 | 5.000%, due 08/15/16 | 271,057 | ||||||||||
30,770,762 | S | 5.500%, due 07/15/32-11/15/22 | 32,678,629 | |||||||||
1,295,280 | 5.500%, due 08/15/36 | 1,435,908 | ||||||||||
159,644 | 5.667%, due 05/01/37 | 171,232 | ||||||||||
1,153,694 | S, ^ | 6.000%, due 04/15/33 | 206,518 | |||||||||
4,039,680 | S | 6.000%, due 07/15/32-01/15/29 | 4,392,919 | |||||||||
13,285 | 6.000%, due 04/01/14 | 14,336 | ||||||||||
14,476,048 | S, ^ | 6.143%, due 10/15/37 | 1,914,942 | |||||||||
4,441,887 | S, ^ | 6.493%, due 05/15/35 | 668,133 | |||||||||
4,500,000 | W | 6.500%, due 11/15/34 | 4,891,644 | |||||||||
33,337 | S | 6.500%, due 01/01/24 | 36,621 | |||||||||
47,547 | 6.500%, due 12/01/31-11/01/28 | 52,801 | ||||||||||
52,350 | S | 7.000%, due 11/01/31-03/01/32 | 59,368 | |||||||||
5,400 | S | 7.500%, due 11/01/28 | 6,148 | |||||||||
1,029,000 | W | 0.000%, due 10/15/33 | 1,103,281 | |||||||||
73,149,160 | ||||||||||||
| Federal National Mortgage Association##: 9.0% |
| ||||||||||
307,026 | S | 0.657%, due 04/18/28 | 308,438 | |||||||||
224,925 | S | 0.797%, due 10/25/33 | 225,957 | |||||||||
203,600 | S | 0.806%, due 01/25/32 | 203,647 | |||||||||
7,992,000 | W | 4.000%, due 07/25/39 | 8,216,775 | |||||||||
2,143,844 | S, ^ | 4.000%, due 11/01/18 | 179,783 | |||||||||
19,626,000 | W | 4.500%, due 10/15/35-10/15/18 | 20,462,724 | |||||||||
3,758,695 | 4.500%, due 09/01/40 | 3,919,655 | ||||||||||
843,062 | S | 4.986%, due 07/01/35 | 898,820 | |||||||||
11,749,023 | S | 5.000%, due 05/25/32-02/25/29 | 12,428,741 | |||||||||
122,292 | 5.000%, due 07/01/23 | 129,770 | ||||||||||
4,659,020 | S | 5.500%, due 05/25/30-02/01/18 | 5,004,454 | |||||||||
2,581,670 | 5.500%, due 08/25/36 | 2,654,979 | ||||||||||
1,569,520 | S, ^ | 6.000%, due 08/25/33 | 250,264 | |||||||||
9,033,315 | S | 6.000%, due 04/25/31-07/25/29 | 9,914,449 | |||||||||
6,263,661 | S, ^ | 6.194%, due 04/25/37 | 817,832 | |||||||||
3,654,115 | S, ^ | 6.334%, due 06/25/36 | 495,051 | |||||||||
1,045,148 | S, ^ | 6.344%, due 08/25/25 | 27,269 | |||||||||
3,128,205 | S, ^ | 6.444%, due 08/25/26 | 497,295 | |||||||||
7,071,426 | S, ^ | 6.484%, due 01/25/37 | 1,090,479 | |||||||||
23,792,213 | S, ^ | 6.494%, due 10/25/35 | 3,855,607 | |||||||||
11,000 | W | 6.500%, due 10/01/31 | 11,995 | |||||||||
893,206 | S | 6.500%, due 06/01/31-07/01/29 | 993,235 | |||||||||
351,172 | S | 7.000%, due 01/01/30-12/01/27 | 398,489 | |||||||||
1,566,574 | S, ^ | 7.428%, due 02/17/29 | 316,213 | |||||||||
856,081 | S | 7.500%, due 10/01/30-01/25/48 | 1,005,947 |
Principal Amount | Value | |||||||||||
| Federal National Mortgage Association##: (continued) |
| ||||||||||
$ | 7,371 | 7.500%, due 09/01/30 | $ | 8,414 | ||||||||
150,633 | S | 27.575%, due 02/25/34 | 218,159 | |||||||||
74,534,441 | ||||||||||||
| Government National Mortgage Association: 1.5% |
| ||||||||||
7,195 | S | 3.375%, due 04/20/28 | 7,424 | |||||||||
1,860,578 | S | 4.500%, due 04/15/39 | 1,967,618 | |||||||||
32,979,233 | S, ^ | 5.000%, due 04/20/38-06/16/39 | 3,422,094 | |||||||||
23,648,417 | S, ^ | 5.943%, due 06/20/38-04/20/39 | 2,474,654 | |||||||||
12,627,973 | S, ^ | 6.043%, due 05/20/39 | 1,288,792 | |||||||||
10,500,478 | S, ^ | 6.143%, due 04/20/38 | 1,095,344 | |||||||||
2,887,460 | S, ^ | 6.243%, due 05/16/38 | 441,593 | |||||||||
10,943,391 | S, ^ | 6.293%, due 01/20/38 | 1,165,379 | |||||||||
193,680 | S | 6.500%, due 03/15/31-02/15/29 | 216,755 | |||||||||
37,103 | 6.500%, due 06/15/29 | 41,686 | ||||||||||
83,593 | S | 7.000%, due 05/15/32-02/15/28 | 95,476 | |||||||||
173,013 | S | 7.500%, due 11/15/30-07/15/29 | 198,376 | |||||||||
420,299 | S, ^ | 7.993%, due 06/16/31 | 67,959 | |||||||||
12,483,150 | ||||||||||||
Total U.S. Government Agency Obligations | 160,166,751 | |||||||||||
| U.S. TREASURY OBLIGATIONS: 24.8% |
| ||||||||||
| U.S. Treasury Notes: 24.8% |
| ||||||||||
8,261,000 | L | 0.375%, due 08/31/12 | 8,256,159 | |||||||||
20,859,000 | 0.750%, due 09/15/13 | 20,930,713 | ||||||||||
15,192,000 | L | 1.250%, due 08/31/15 | 15,189,630 | |||||||||
998,000 | 1.875%, due 08/31/17 | 997,298 | ||||||||||
15,486,000 | 2.500%, due 04/30/15 | 16,420,007 | ||||||||||
69,338,000 | S | 2.625%, due 08/15/20 | 69,998,860 | |||||||||
15,323,000 | 3.375%, due 11/15/19 | 16,509,337 | ||||||||||
50,251,000 | 4.375%, due 05/15/40 | 56,446,295 | ||||||||||
Total U.S. Treasury Obligations | 204,748,299 | |||||||||||
| ASSET-BACKED SECURITIES: 7.6% |
| ||||||||||
| Automobile Asset-Backed Securities: 2.0% |
| ||||||||||
1,501,000 | #, S | Bank of America Auto Trust, | 1,572,832 | |||||||||
712,390 | Capital Auto Receivables Asset Trust, | 716,427 | ||||||||||
668,000 | CarMax Auto Owner Trust, | 689,533 | ||||||||||
1,428,000 | S | CarMax Auto Owner Trust, | 1,489,432 | |||||||||
1,788,000 | S | CarMax Auto Owner Trust, | 1,935,775 | |||||||||
1,710,000 | # | Chrysler Financial Auto Securitization Trust, 5.570%, due 08/08/14 | 1,789,860 | |||||||||
2,038,000 | # | Chrysler Financial Auto Securitization Trust, | 2,149,487 | |||||||||
3,394,000 | # | Chrysler Financial Auto Securitization Trust, 6.540%, due 11/10/14 | 3,550,635 | |||||||||
562,000 | Ford Credit Auto Owner Trust, | 588,994 | ||||||||||
932,000 | S | Hyundai Auto Receivables Trust, | 946,079 |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| Automobile Asset-Backed Securities: (continued) |
| ||||||||||
$ | 45,000 | Hyundai Auto Receivables Trust, | $ | 48,543 | ||||||||
911,000 | S | Mercedes-Benz Auto Receivables Trust, | 943,430 | |||||||||
16,421,027 | ||||||||||||
| Credit Card Asset-Backed Securities: 4.2% |
| ||||||||||
459,000 | BA Credit Card Trust, | 451,171 | ||||||||||
5,442,000 | Capital One Multi-Asset Execution Trust, | 5,394,673 | ||||||||||
402,000 | Capital One Multi-Asset Execution Trust, | 441,893 | ||||||||||
3,400,000 | Capital One Multi-Asset Execution Trust, | 3,886,208 | ||||||||||
1,552,000 | Capital One Multi-Asset Execution Trust, | 1,849,582 | ||||||||||
3,281,000 | Citibank Credit Card Issuance Trust, | 3,250,500 | ||||||||||
100,000 | Citibank Credit Card Issuance Trust, | 109,743 | ||||||||||
4,273,000 | Citibank Credit Card Issuance Trust, | 4,548,071 | ||||||||||
4,917,000 | Citibank Credit Card Issuance Trust, | 5,220,160 | ||||||||||
576,000 | Discover Card Master Trust, | 645,878 | ||||||||||
1,801,000 | S | Discover Card Master Trust, | 2,145,221 | |||||||||
278,000 | MBNA Credit Card Master Note Trust, | 276,603 | ||||||||||
1,286,000 | MBNA Credit Card Master Note Trust, | 1,822,721 | ||||||||||
3,380,000 | MBNA Credit Card Master Note Trust, | 3,596,185 | ||||||||||
1,021,000 | # | MBNA Master Credit Card Trust, | 1,050,070 | |||||||||
34,688,679 | ||||||||||||
| Home Equity Asset-Backed Securities: 0.1% |
| ||||||||||
260,625 | S | Freddie Mac Structured Pass-through Securities, | 254,508 | |||||||||
57,752 | S | Freddie Mac Structured Pass-through Securities, | 55,325 | |||||||||
40,848 | S | Merrill Lynch Mortgage Investors Trust, | 31,527 |
Principal Amount | Value | |||||||||||
| Home Equity Asset-Backed Securities: (continued) |
| ||||||||||
$ | 64,983 | S | Residential Asset Securities Corp., | $ | 38,535 | |||||||
379,895 | ||||||||||||
| Other Asset-Backed Securities: 1.3% |
| ||||||||||
30,157 | AEP Texas Central Transition Funding LLC, | 32,632 | ||||||||||
2,084,658 | # | Atrium CDO Corp., | 1,964,790 | |||||||||
855,795 | S | Bear Stearns Asset-Backed Securities, Inc., | 643,792 | |||||||||
1,400,000 | #, S | Carlyle High Yield Partners, | 1,323,000 | |||||||||
9,002 | CenterPoint Energy Transition Bond Co. LLC, | 9,377 | ||||||||||
111,349 | S | Chase Funding Mortgage Loan Asset-Backed Certificates, | 95,999 | |||||||||
323 | S | Chase Funding Mortgage Loan Asset-Backed Certificates, | 322 | |||||||||
1,529,333 | S | Credit-Based Asset Servicing and Securitization, LLC, | 1,517,158 | |||||||||
1,028,725 | S | Credit-Based Asset Servicing and Securitization, LLC, | 735,347 | |||||||||
1,575,000 | #, S | Credit-Based Asset Servicing and Securitization, LLC, | 1,577,607 | |||||||||
1,188,000 | #, S | Credit-Based Asset Servicing and Securitization, LLC, | 1,051,330 | |||||||||
1,436,198 | # | GSC Partners CDO Fund Ltd., | 1,350,026 | |||||||||
620,411 | S | Lehman XS Trust, | 476,913 | |||||||||
124,312 | S | Residential Asset Mortgage Products, Inc., | 120,237 | |||||||||
4,394 | S | Residential Asset Mortgage Products, Inc., | 3,641 | |||||||||
10,902,171 | ||||||||||||
Total Asset-Backed Securities | 62,391,772 | |||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: 12.2% |
| ||||||||||
141,445 | S | ABN Amro Mortgage Corp., | 137,890 | |||||||||
294,435 | S | American Home Mortgage Assets, | 18,269 | |||||||||
4,635,343 | S | American Home Mortgage Investment Trust, | 1,318,139 |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) |
| ||||||||||
$ | 658,546 | S | Banc of America Commercial Mortgage, Inc., | $ | 668,909 | |||||||
1,230,256 | S | Banc of America Commercial Mortgage, Inc., | 1,283,846 | |||||||||
1,070,000 | S | Banc of America Commercial Mortgage, Inc., | 1,179,409 | |||||||||
1,660,000 | S | Banc of America Commercial Mortgage, Inc., | 1,811,257 | |||||||||
3,652,359 | #, S | Banc of America Funding Corp., | 3,840,169 | |||||||||
651,167 | S | Bear Stearns Alternative-A Trust, | 462,199 | |||||||||
33,929 | Bear Stearns Commercial Mortgage Securities, | 35,695 | ||||||||||
1,325,312 | S | Chase Mortgage Finance Corp., | 1,339,850 | |||||||||
2,682,000 | S | Citigroup Commercial Mortgage Trust, | 2,876,536 | |||||||||
3,948,764 | #, S | Citigroup Mortgage Loan Trust, Inc., | 4,366,095 | |||||||||
5,619,587 | #, ^ | Citigroup/Deutsche Bank Commercial Mortgage Trust, | 48,856 | |||||||||
2,050,000 | S | Commercial Mortgage Asset Trust, | 2,239,464 | |||||||||
3,430,000 | # | Commercial Mortgage Pass-Through Certificates, | 3,461,440 | |||||||||
2,065,000 | #, S | Commercial Mortgage Pass-through Certificates, | 2,017,380 | |||||||||
930,000 | S | Commercial Mortgage Pass-through Certificates, | 983,767 | |||||||||
2,030,000 | S | Commercial Mortgage Pass-through Certificates, | 2,213,494 | |||||||||
21,769 | S | Countrywide Alternative Loan Trust, | 21,137 | |||||||||
233,355 | S | Countrywide Alternative Loan Trust, | 230,699 | |||||||||
1,147,701 | S | Countrywide Home Loan Mortgage Pass-through Trust, | 254,893 | |||||||||
67,223,744 | #, ^ | Credit Suisse First Boston Mortgage Securities Corp., | 670,543 | |||||||||
240,520 | S | Credit Suisse First Boston Mortgage Securities Corp., | 246,205 |
Principal Amount | Value | |||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) |
| ||||||||||
$ | 300,000 | S | Credit Suisse First Boston Mortgage Securities Corp., | $ | 315,737 | |||||||
132,960,015 | #, ^ | Credit Suisse Mortgage Capital Certificates, | 874,903 | |||||||||
1,430,000 | # | Credit Suisse Mortgage Capital Certificates, | 1,536,355 | |||||||||
923,000 | S | First Horizon Asset Securities, Inc., | 876,410 | |||||||||
77,257,479 | #, S, ^ | Greenwich Capital Commercial Funding Corp., | 630,753 | |||||||||
96,635,890 | #, ^ | Greenwich Capital Commercial Funding Corp., | 1,401,655 | |||||||||
60,000 | Greenwich Capital Commercial Funding Corp., | 64,777 | ||||||||||
3,120,000 | S | Greenwich Capital Commercial Funding Corp., | 3,294,647 | |||||||||
140,000 | Greenwich Capital Commercial Funding Corp., | 129,613 | ||||||||||
2,790,000 | S | Greenwich Capital Commercial Funding Corp., | 3,029,394 | |||||||||
2,130,000 | S | Greenwich Capital Commercial Funding Corp., | 2,233,589 | |||||||||
2,180,000 | S | Greenwich Capital Commercial Funding Corp., | 1,991,709 | |||||||||
2,505,000 | S | Greenwich Capital Commercial Funding Corp., | 2,748,786 | |||||||||
1,500,000 | #, S | GS Mortgage Securities Corp. II, | 1,665,377 | |||||||||
830,000 | # | GS Mortgage Securities Corp. II, | 860,968 | |||||||||
1,149,418 | S | GSAA Trust, | 1,120,912 | |||||||||
218,664 | S | GSR Mortgage Loan Trust, | 196,683 | |||||||||
1,147,726 | S | GSR Mortgage Loan Trust, | 1,068,295 | |||||||||
292,382 | S | Homebanc Mortgage Trust, | 209,750 | |||||||||
258,416,632 | S, ^ | J.P. Morgan Chase Commercial Mortgage Securities Corp., | 1,654,202 | |||||||||
494,405 | S | J.P. Morgan Chase Commercial Mortgage Securities Corp., | 508,703 |
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Principal Amount | Value | |||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) |
| ||||||||||
$ | 1,700,000 | S | J.P. Morgan Chase Commercial Mortgage Securities Corp., | $ | 1,771,240 | |||||||
1,090,000 | S | J.P. Morgan Chase Commercial Mortgage Securities Corp., | 1,201,728 | |||||||||
3,700,000 | S | J.P. Morgan Chase Commercial Mortgage Securities Corp., | 3,991,659 | |||||||||
730,000 | J.P. Morgan Chase Commercial Mortgage Securities Corp., | 760,930 | ||||||||||
43,002,830 | #, ^ | LB-UBS Commercial Mortgage Trust, | 774,060 | |||||||||
22,490,897 | S, ^ | LB-UBS Commercial Mortgage Trust, | 93,857 | |||||||||
61,233,631 | #, ^ | LB-UBS Commercial Mortgage Trust, | 1,720,861 | |||||||||
1,080,000 | LB-UBS Commercial Mortgage Trust, | 1,182,192 | ||||||||||
1,445,000 | S | LB-UBS Commercial Mortgage Trust, | 1,574,467 | |||||||||
2,330,000 | S | LB-UBS Commercial Mortgage Trust, | 2,459,029 | |||||||||
2,260,000 | S | LB-UBS Commercial Mortgage Trust, | 2,449,954 | |||||||||
2,980,000 | LB-UBS Commercial Mortgage Trust, | 3,288,245 | ||||||||||
2,849 | S | MASTR Alternative Loans Trust, | 2,868 | |||||||||
119,454 | S | MASTR Alternative Loans Trust, | 123,664 | |||||||||
52,341,621 | #, ^ | Merrill Lynch Mortgage Trust, | 1,198,670 | |||||||||
1,090,000 | S | Merrill Lynch Mortgage Trust, | 1,177,429 | |||||||||
90,000 | Morgan Stanley Capital I, | 95,791 | ||||||||||
1,674 | Morgan Stanley Dean Witter Capital I, | 1,686 | ||||||||||
610,000 | # | Morgan Stanley Dean Witter Capital I, | 616,103 | |||||||||
16,559,580 | #, ^ | RBSCF Trust, | 562,512 | |||||||||
1,710,000 | # | RBSCF Trust, | 1,444,980 | |||||||||
323,943 | S | Sequoia Mortgage Trust, | 266,987 |
Principal Amount | Value | |||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: (continued) |
| ||||||||||
$ | 705,620 | Structured Adjustable Rate Mortgage Loan Trust, | $ | 691,465 | ||||||||
646,413 | S | Structured Asset Mortgage Investments, Inc., | 424,672 | |||||||||
1,072,573 | Structured Asset Securities Corp., | 1,091,496 | ||||||||||
2,100,000 | # | Vornado DP LLC, | 2,164,836 | |||||||||
1,590,000 | # | Vornado DP LLC, | 1,643,292 | |||||||||
1,160,000 | Wachovia Bank Commercial Mortgage Trust, | 1,251,141 | ||||||||||
1,460,000 | S | Wachovia Bank Commercial Mortgage Trust, | 1,435,924 | |||||||||
3,255,590 | S | WaMu Mortgage Pass-Through Certificates, | 3,041,209 | |||||||||
1,417,588 | S | Washington Mutual Mortgage Pass-through Certificates, | 1,478,586 | |||||||||
3,148,969 | Wells Fargo Mortgage-Backed Securities Trust, | 3,030,449 | ||||||||||
61,832 | Wells Fargo Mortgage-Backed Securities Trust, | 63,722 | ||||||||||
Total Collateralized Mortgage Obligations | 101,215,063 | |||||||||||
| MUNICIPAL BONDS: 0.3% |
| ||||||||||
| Louisiana: 0.3% |
| ||||||||||
1,105,000 | Louisiana Local Government Environmental Facilities & Community Development Auth, | 1,142,647 | ||||||||||
1,314,000 | Louisiana Local Government Environmental Facilities & Community Development Auth, | 1,382,643 | ||||||||||
Total Municipal Bonds | 2,525,290 | |||||||||||
| OTHER BONDS: 2.6% |
| ||||||||||
| Foreign Government Bonds: 2.6% |
| ||||||||||
BRL 37,354,000 | Brazil Notas do Tesouro Nacional Series F, | 21,516,522 | ||||||||||
Total Other Bonds | 21,516,522 | |||||||||||
See Accompanying Notes to Financial Statements
Table of Contents
ING INTERMEDIATE BOND FUND | PORTFOLIO OF INVESTMENTS AS OF SEPTEMBER 30, 2010 (UNAUDITED) (CONTINUED) |
Shares | Value | |||||||||||
| PREFERRED STOCK: 0.2% |
| ||||||||||
| Financials: 0.2% |
| ||||||||||
71,275 | P | Citigroup Capital XII | $ | 1,882,373 | ||||||||
Total Preferred Stock | 1,882,373 | |||||||||||
Total Long-Term Investments | 854,023,301 | |||||||||||
| SHORT-TERM INVESTMENTS: 2.8% |
| ||||||||||
| Affiliated Mutual Fund: 0.4% |
| ||||||||||
3,312,000 | ING Institutional Prime Money Market Fund - Class I | 3,312,000 | ||||||||||
Total Mutual Fund | 3,312,000 | |||||||||||
| Securities Lending Collateralcc: 2.4% |
| ||||||||||
16,994,670 | BNY Mellon Overnight Government Fund (1) | 16,994,670 | ||||||||||
3,329,856 | I | BNY Institutional Cash Reserves Fund, Series B (1)(2) | 2,663,885 | |||||||||
Total Securities Lending Collateral | 19,658,555 | |||||||||||
Total Short-Term Investments | 22,970,555 | |||||||||||
Total Investments in Securities | 106.2 | % | $ | 876,993,856 | ||||||
Other Assets and Liabilities - Net | (6.2 | ) | (50,905,194 | ) | ||||||
Net Assets | 100.0 | % | $ | 826,088,662 | ||||||
& | Payment-in-kind |
MASTR | Mortgage Asset Securitization Transaction, Inc. |
# | 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. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds‘ Board of Directors/Trustees. |
P | Preferred Stock may be called prior to convertible date. |
cc | Securities purchased with cash collateral for securities loaned. |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund‘s position in Series B is being fair valued daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. |
## | 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. |
S | All or a portion of this security has been identified by the Fund to cover future collateral requirements for applicable futures, options, swaps, foreign currency contracts and/or when-issued or delayed-delivery securities. |
I | Illiquid security |
L | Loaned security, a portion or all of the security is on loan at September 30, 2010. |
± | Defaulted security |
X | Fair value determined by ING Funds Valuation Committee appointed by the Funds‘ Board of Directors/Trustees. |
^ | 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. |
BRL | Brazilian Real |
* | Cost for federal income tax purposes is |
Net unrealized appreciation consists of: | ||||
Gross Unrealized Appreciation | $ | 52,613,924 | ||
Gross Unrealized Depreciation | (9,800,385 | ) | ||
Net Unrealized Appreciation | $ | 42,813,539 | ||
See Accompanying Notes to Financial Statements
Table of Contents
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-end Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers of Closed-end Management Investment Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-end Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
The Board has a Nominating Committee for the purpose of considering and presenting to the Board candidates it proposes for nomination to fill Independent Trustee vacancies on the Board. The Committee currently consists of all Independent Trustees of the Board. (6 individuals). The Nominating Committee operates pursuant to a Charter approved by the Board. The primary purpose of the Nominating Committee is to consider and present to the Board the candidates it proposes for nomination to fill vacancies on the Board. In evaluating candidates, the Nominating Committee may consider a variety of factors, but it has not at this time set any specific minimum qualifications that must be met. 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 its own nominees. A shareholder nominee for director should be submitted in writing to the Fund’s Secretary. Any such shareholder nomination should include at a minimum the following information as to each individual proposed for nomination as trustee: such individual’s written consent to be named in the proxy statement as a nominee (if nominated) and to serve as a trustee (if elected), and all information relating to such individual that is required to be disclosed in the solicitation of proxies for election of trustees, 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 Securities and Exchange Commission.
Table of Contents
Item 11. | 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 12. | Exhibits. |
(a)(1) | The Code of Ethics is not required for the semi-annual filing. | |
(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. | |
(a)(3) | Not required for semi-annual filing. | |
(b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. |
Table of Contents
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: December 3, 2010
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: December 3, 2010
By | /s/ Todd Modic | |
Todd Modic | ||
Senior Vice President and Chief Financial Officer |
Date: December 3, 2010