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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: 811-7428
ING Mutual Funds
(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: October 31
Date of reporting period: November 1, 2009 to April 30, 2010
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):
Semi-Annual Report
April 30, 2010
Classes A, B, C, I, O, R and W
Global Equity Funds
n ING Global Equity Dividend Fund
n ING Global Natural Resources Fund
n ING Global Real Estate Fund
n ING Global Value Choice Fund
International Equity Funds
n ING Asia-Pacific Real Estate Fund
n ING Emerging Countries Fund
n ING European Real Estate Fund
n ING Foreign Fund
n ING Greater China Fund
n ING Index Plus International Equity Fund
n ING International Capital Appreciation Fund
n ING International Real Estate Fund
| | |
| | n | ING International SmallCap Multi-Manager Fund |
n ING International Value Fund
n ING International Value Choice Fund
n ING Russia Fund
Global and International Fixed-Income Funds
n ING Global Bond Fund
International Fund-of-Funds
n ING Diversified International 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
TABLE OF CONTENTS
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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. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov. The Funds’ Forms 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; and is available upon request from the Funds by calling Shareholder Services toll-free at (800) 992-0180.
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PRESIDENT’S LETTER
Greek Tragedy: Again!
Dear Shareholder,
As overused as it may be at this point, the metaphor really is apt: ironic parallels exist between ancient Greek drama and today’s sovereign crisis. A common theme of Greek tragedy is that capricious events lead people to make poor decisions. Following the logic of the situation, the characters go on to mismanage their affairs so badly that the gods are forced to intervene. In ancient Greek theatre, the gods came to the rescue by descending on a platform lowered from above the stage. In today’s drama, this role is filled by the European Central Bank (“ECB”), and the platform comes complete with a thundering Zeus (in the form of Germany), who, as in ancient times, scolds the Greeks for their errant ways as he reorders their affairs.
Is there a lesson to be drawn from these parallels, other than that life imitates art? I think there are two, in fact: the first is that a bad start can often lead to a bad outcome. When Greece joined the euro zone as a “peripheral” nation, its economy was not competitive with core members such as France and Germany. By joining the currency bloc, Greece forfeited control of its monetary policy to the ECB; stripped of the ability to devalue its currency or lower interest rates, Athens was left with only painful choices to resolve its fiscal problems.
The second lesson is that individuals, nations or currency zones seldom let the “unthinkable” occur. In life, as in art, the worst possible outcome is letting things get totally out of control. For all its grandstanding, the ECB never really had the option of abandoning Greece without also giving up on the euro.
A common element of tragedy is the failure of local authority and its pre-emption by outside powers. Here in the United States, as we contemplate the European sovereign debt crisis and attempt to gauge its impact on our fortunes, we need to remember that we too are deeply in debt to outsiders. For now, we’re seen as a safe haven, but if we continue to avoid addressing our own budget deficit, at some point we could find ourselves facing the hostility of the global debt markets.
All the more reason, if you are a U.S.-based investor, to make sure your long-term investment program is well diversified globally. As the global economy continues to recover from the recession, economic regions are likely to fare differently, and you want the potential to benefit from those differentials.
We have long recommended a broadly diversified asset mix as most likely to serve your financial needs. Should you choose to add to your portfolio’s global diversification, please discuss prospective changes thoroughly with your investment advisor before taking action.
Thank you for your continued confidence in ING Funds. We look forward to serving your investment needs in the future.
Sincerely,
Shaun P. Mathews
President and Chief Executive Officer
ING Funds
May 13, 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 ING Funds disclaims 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.
International investing poses special risks including currency fluctuation, economic and political risks not found in investments that are solely domestic.
For more complete information, or to obtain a prospectus for any ING Fund, please call your investment professional or ING Funds 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. 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.
1
Market Perspective: Six Months Ended April 30, 2010
In the first half of the new fiscal year, despite various shocks to confidence, global equities in the form of the MSCI World Indexsm(1) measured in local currencies, including net reinvested dividends (“MSCI” for regions discussed below), returned 12.17%. (The MSCI World Indexsm(1) returned 9.40% for the six months ended April 30, 2010, measured in U.S. dollars.)
If investors were close to despair in late 2008 and the beginning of 2009, then from early-March 2009 they started to take comfort from a few “green shoots” of less bad news in a financial world that remained fraught with danger. The prices of risky assets rebounded sharply.
But by the end of October the mood had changed again. Few investors still believed that the global financial system was on the verge of collapse. Most accepted glumly that governments and central banks had pulled it from the brink by supporting failing institutions at enormous fiscal cost, swollen further by measures to bolster demand against the recession that followed the credit crisis. But stimulative programs must end, interest and tax rates must rise, over-extended households must cut back. Whether consumer and business demand could recover quickly and firmly enough to sustain a new cycle of growth, was the nagging doubt that kept investor sentiment fragile through April, even if the worst of the crisis had passed.
Evidence of recovery continued to build, with the inevitable “ifs” and “buts”.
The housing market had always been in the eye of the financial storm, which broke not long after home prices started to fall in January 2007 (based on the Standard & Poor’s (“S&P”)/Case-Shiller 20-City Composite Home Price Index(2), year-over-year). After sliding for more than three years, a 0.6% annual increase was finally recorded in February 2010.
The employment situation has been slow to show real improvement. The unemployment rate peaked at 10.1% in October 2009 but was still as high as 9.7% in March 2010. That month payrolls were up by 162,000, the most since March 2007 and the third increase in five months. But 44.1% of the almost 15 million unemployed have been unemployed for at least 27 weeks. Wage growth remains understandably weak.
On the business front, there were bright spots in the purchasing managers’ indices, which by April indicated the fastest expansion in manufacturing since 2004 and in service industries since 2006.
U.S. gross domestic product (“GDP”) growth for the fourth quarter of 2009 was reported at 5.6% at an annual rate, a rousing performance flattered however, by inventory rebuilding which accounted for two thirds of it. The preliminary reading for the first quarter of 2010 was a better balanced 3.2%.
The most significant overseas news came from China and Greece. China, now the world’s biggest exporter, resumed GDP growth above 10% in the fourth quarter of 2009, tempered by over-investment and a property price bubble that caused the Bank of China repeatedly to restrict lending, thereby threatening global recovery. In profligate Greece, with a 2009 budget deficit of 13.6% and existing sovereign debt above 100% of GDP, default on billions of euro of maturing bonds loomed. Standard and Poor’s downgraded Greece’s long term debt to “junk” status. Eurozone countries, with no single voice, dithered on the need for a bail-out, its size, terms and the involvement of the International Monetary Fund (“IMF”). The yields on Greece’s government bonds ballooned. Signs of contagion to other high deficit countries like Portugal and Spain were visible and some feared for the future of the euro itself. On April 23, Greece, amid strikes and riots, officially called for a life-line, but by April 30 it still dangled out of reach.
This had a pronounced effect on currencies. The dollar rose 11.8% against the euro and 8.3% against the pound: another high budget-deficit currency, but just 3.4% against the yen. In addition, rumblings of discontent about China’s pegged exchange rate could be heard again on Capitol Hill.
In U.S. fixed income markets, the Barclays Capital U.S. Aggregate Bond Index(3) of investment grade bonds returned 2.54% in the six months through April, with investment grade corporates (represented by the Barclays Capital Corporate Investment Grade Bond Index(4)) returning 4.83% and outperforming Treasuries (represented by the Barclays Capital U.S. Treasury Index(5)) which returned 0.89%, while high yield bonds (represented by the Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index(6)) did better still with a return of 11.60%.
U.S. equities, represented by the S&P 500® Composite Stock Price (“S&P 500®”) Index(7) including dividends, surged 15.66% in the first half of the fiscal year, with mostly improving company earnings and economic reports vying for supremacy in investors’ minds with European sovereign debt problems, Chinese lending
2
Market Perspective: Six Months Ended April 30, 2010
restrictions and some unexpected legal and legislative attacks on banks. After nine straight quarters of annual decline, S&P 500® profits increased substantially in the fourth quarter of 2009 and the first quarter of 2010, leading to higher future estimates and more attractive valuations.
In international markets, the MSCI Japan® Index(8) returned 11.89% for the six months through April, its export-oriented industries supported by a rebounding global economy. There remained much to worry about however, with prices falling for 13 months and wages for 21 months before recording a gain in March. The MSCI Europe ex UK® Index(9) added 7.06%, but declined in April, unnerved by Greece’s refinancing problems and the broader, deeper dangers. Despite stalled GDP growth in the fourth quarter of 2009, consumer sentiment was improving and the closely-watched composite manufacturing/service industries purchasing managers’ index reached the highest level since August 2007. The MSCI UK® Index(10) gained 11.77%, despite an April pull-back. The U.K. had to wait until the fourth quarter of 2009 for GDP growth, 0.4%, while investors faced the deflationary prospect of a 10.87% budget deficit, against which decisive action would be difficult after a probably inconclusive election result. But the weaker pound was boosting exports and U.K. stocks were among the cheapest in Europe.
(1) The MSCI World Indexsm is an unmanaged index that measures the performance of over 1,400 securities listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand and the Far East.
(2) The S&P/Case-Shiller 20-City Composite Home Price Index is 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.
(3) The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities.
(4) The Barclays Capital Corporate Investment Grade Bond Index is 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.
(5) The Barclays Capital U.S. Treasury Index is 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.
(6) The Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index is 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.
(7) The S&P 500® Index is 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.
(8) The MSCI Japan® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan.
(9) The MSCI Europe ex UK® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe, excluding the UK.
(10) The MSCI UK® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK.
Parentheses denote a negative number.
All indices are unmanaged and investors cannot invest directly in an index. 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.
3
ING Global Equity Dividend Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Equity Dividend Fund (“Global Equity Dividend” or the “Fund”) seeks growth of capital with dividend income as a secondary consideration. The Fund is managed by Nicolas Simar, Head of Value/High Dividend, Moudy El Khodr, Senior Investment Manager Equities, and Kris Hermie, CFA, Senior Investment Manager of ING Investment Management Advisors B.V. — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 8.63%, compared to the MSCI World IndexSM (1), which returned 9.40% for the same period.
Portfolio Specifics: The Fund’s underperformance for the period was largely attributable to fees and expenses. Currency positioning detracted, mostly because of an overweight to Europe and an underweight to Canada. Sector allocation detracted in most sectors. In contrast, favorable stock selection offset most of the adverse effects of currency positioning and sector allocation.
The sectors that detracted the most from relative results were consumer discretionary and healthcare. Weak stock selection in consumer discretionary hurt the most. Sector allocation in telecommunications and information technology also detracted. The Fund benefited from selection among consumer staples stocks.
Among the top contributing stocks to relative returns for the period were Hershey Co., Nintendo Co. Ltd. (“Nintendo”), Emerson Electric Co. and KT Corp. (Korean Telecom Corporation). In our view, Nintendo’s long-term fundamentals remain strong and the prospects of new products such as the 3D device and the push for new markets, e.g., senior customers with the Dsi XL device also are positive points. The Fund’s position in Sara Lee Corp. (“Sara Lee”) helped results. Sara Lee benefited from profits that beat the Street’s estimates; evidence of restructuring of their portfolio was also supportive. Besides selling certain assets, the company also is launching new products.
During the period, the Fund sold its position in Dow Chemical Co., mainly for valuation reasons after the stock rallied strongly. The Fund initiated a position in Japanese convenience store and supermarket operator Seven & I Holdings Co. Ltd., which posted significant gains during the period.
Most of the performance detractors relative to the benchmark were stocks that the Fund did not own. For example, the two biggest detractions came from not owning Apple Inc. or Bank of America Corp. On the other hand, two Fund holdings also hurt results: positions in Italian energy company ENI S.p.A. and UK real estate investment trust Land Securities Group PLC. The Fund sold Australian bank Suncorp-Metway Ltd. because of weak dividend sustainability. Our view was confirmed a few weeks later when the company disappointed the market by slashing its dividend.
During the period, market attention shifted to focus increasingly on macroeconomic perspectives. There was a “search for comfort” in macro numbers to confirm the recovery, but the news also brought sovereign risk back to the front burner. In addition to certain countries’ downgrades, the Dubai World story dragged down the global markets. Greece was the next center of attention as investors focused on the risks of its sovereign debt crisis spreading contagion to the weakest countries of the euro zone. These events increased market volatility.
Current Strategy and Outlook: Our outlook for the Fund remains positive. We believe investments in quality defensive stocks may give the Fund potential downside protection and lower volatility. Under current market conditions, these potential benefits could contribute to performance. Regardless of scenario, the Fund seeks to identify sectors or stocks where it may exploit temporary undervaluations to capture unrecognized value.
| |
| (1) | This MSCI World Indexsm is an unmanaged index that measures the performance of over 1,400 securities listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Pitney Bowes, Inc. | | | 1.6 | % |
| Royal Dutch Shell PLC | | | 1.6 | % |
| AT&T, Inc. | | | 1.5 | % |
| Chevron Corp. | | | 1.5 | % |
| Nintendo Co., Ltd. | | | 1.5 | % |
| Pfizer, Inc. | | | 1.5 | % |
| ENI S.p.A. | | | 1.4 | % |
| BP PLC | | | 1.4 | % |
| Sumitomo Mitsui Financial Group, Inc. | | | 1.4 | % |
| McDonald’s Corp. | | | 1.3 | % |
Portfolio holdings are subject to change daily.
4
ING Global Natural Resources Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Natural Resources Fund (“Global Natural Resources” or the “Fund”) seeks to attain long-term capital appreciation. The Fund is managed by David Powers and Joseph Bassett, Portfolio Managers, of ING Investment Management Co. — the Sub-Adviser.*
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 12.47% compared to the Standard & Poor’s 500® Composite Stock Price Index(1) (“S&P 500® Index”) and the Standard & Poor’s (“S&P”) North American Natural Resources Sector Index(2) which returned 15.66% and 13.06%, respectively, for the same period.
Portfolio Specifics: The natural resources sector had positive returns for the reporting period but lagged the broader market rally. This was mostly due to weakness in energy stocks, particularly among the drillers. These companies underperformed due to the oil spill in the Gulf of Mexico, which hurt stocks such as Transocean Ltd. (“Transocean”). In addition, the Greek sovereign debt crisis and fears of a slowdown in Chinese demand hurt investor sentiment with regard to coal and consumable fuels. Returns were strong in the materials sector: companies in the precious metals and forest products sub-industries performed well due to the global economic recovery.
The Fund underperformed for the reporting period. Stock selection within materials was the primary driver of Fund performance. In particular, our picks in the steel and diversified metals and mining sub-sectors were favorable. Within the steel sub-sector, Cliffs Natural Resources Inc., an international mining company that produces iron ore, had the largest positive results as it continued to benefit from its sensitivity to the economic recovery and in turn to the recovery of the auto sector. In the diversified metals and mining sub-sector, Rio Tinto PLC (“Rio”) was among our strongest performers. The company’s share price rose as the company reduced its debt by half and restored dividend payments. In addition, Rio benefited from the sale of its Alcon divisions to Amcor Ltd.
Within energy, stock selection in the coal and consumable fuels sub-sector was beneficial, particularly our decision to own Alpha Natural Resources, Inc. — the stock rose on the back of a good earnings report. In addition, the Fund’s exposure to exploration and production companies such as Cimarex Energy Co. was favorable to returns. The stock rose with positive earnings and an increase in its quarterly cash dividend.
The Fund’s exposure to drilling company Transocean hurt results for the period. Transocean’s stock price fell in reaction to the oil spill in the Gulf of Mexico. In addition, not owning exploration and production company EOG Resources, Inc. detracted from performance. Also detracting from results was the Fund’s underweight of the gold sub-sector of materials. In particular, the Fund’s lack of exposure to Newmont Mining Corp. cost performance.
Current Strategy and Outlook: We continue to believe the long-term case for commodities remains intact. In our opinion, prices will be driven by industrialization and urbanization in emerging economies, and the global need for infrastructure spending. Nevertheless, the current global financial stress has caused a longer than estimated interruption in this secular theme. Since commodities fell sharply in 2008, not many projects have been undertaken to increase supply. As the global economy gradually improves, demand is likely to increase. Therefore, we believe that a finite supply and impending global growth resumption should put pressure on commodity prices, leading to solid return potential for this asset class going forward.
| |
| * | Effective April 19, 2010, Mr. Bassett replaced Christopher Corapi as a portfolio manager to the Fund. |
| |
| (1) | The S&P 500® Index is an unmanaged index that measures the performance of securities of approximately 500 of the largest companies in the United States. |
| |
| (2) | The S&P North American Natural Resources Sector Index (formerly, the S&P GSSI Natural Resources Index) is an unmanaged index and a market-capitalization weighted index of stocks designed to measure the performance of companies in the natural resources sector, which includes energy, precious metals, timber and other sub-sectors. Each sector index is a modified-capitalization weighted index, the constituents of which are selected according to objective screening criteria. The weight of a particular stock in each Sector Index is capped at a cap level determined on a sector-by-sector basis. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| ConocoPhillips | | | 6.8 | % |
| ExxonMobil Corp. | | | 6.6 | % |
| Schlumberger Ltd. | | | 5.6 | % |
| Chevron Corp. | | | 4.3 | % |
| Suncor Energy, Inc. | | | 4.2 | % |
| Canadian Natural Resources Ltd. | | | 3.9 | % |
| Apache Corp. | | | 3.9 | % |
| Barrick Gold Corp. | | | 3.2 | % |
| EnCana Corp. | | | 2.9 | % |
| National Oilwell Varco, Inc. | | | 2.8 | % |
Portfolio holdings are subject to change daily.
5
ING Global Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Real Estate Fund (“Global Real Estate” or the “Fund”) seeks to provide investors with high total return, consisting of capital appreciation and current income. The Fund is managed by T. Ritson Ferguson, Chief Investment Officer and Portfolio Manager, Steven D. Burton, Managing Director and Portfolio Manager and Joseph P. Smith, Managing Director and Portfolio Manager, of ING Clarion Real Estate Securities, LLC — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 11.47% compared to the Standard & Poor’s (“S&P”) Developed Property Index(1), which returned 13.50% for the same period.
Portfolio Specifics: The past six months have been a period of positive total returns for global real estate stocks, represented by the S&P Developed Property Index, which have advanced by more than 13% as improving economic conditions and favorable capital market conditions have benefited investors. Macro-economic news has been choppy but, we believe on balance it supports the thesis that global economic conditions continue to improve. In the Asia-Pacific region, recent economic data (most notably in China and Singapore) is coming in ahead of consensus expectations and above those governments’ apparent comfort zone. Both the Singapore and Chinese governments have responded to the robust economic numbers with measures designed to curb liquidity and dampen demand — Singapore through its currency exchange rate and China by announcing a series of measures intended to curb speculative demand for residential properties. In the U.S., economic reports are beginning to provide evidence of a sustainable recovery as leading economic indicators are picking-up, consumer confidence is improving, and a positive jobs report (the first in two years) are being well-received by investors. In the European region, the European Central Bank efforts to deal with Greece’s debt problems have underwhelmed the markets thus far, and the emerging debt issues with Spain, Portugal, Ireland, and Italy cast a negative shadow on the strength of economic recovery from this region.
As a result of this dichotomy, central bank policy remains accommodative in the West but is tightening in the East. The Federal Reserve Bank, Bank of Canada, Bank of England and central banks in Europe ex-Scandinavia have kept policy rates on hold, while policy rates in the Asia-Pacific region on the other hand have an upward bias, with the exception of Japan. The delicate balance remains between Western markets (plus Japan) which are attempting to nurse growth back to a self-sustaining pace and Asian markets, which are attempting to cool economic growth that may be excessive. The ability for macro-economic policy to successfully support and sustain economic growth remains a critical backdrop to the recovery in property fundamentals.
Fund performance trailed the benchmark during the period, primarily as the result of country selection decisions. Underweight exposure to the outperforming U.S. and Canadian markets, along with the cash drag of a modest cash position in a positive market, accounted for the majority of the shortfall. In the European region, country selection benefited from an underweight to Continental Europe, which has underperformed in the face of increased concern regarding sovereign debt issues that have precipitated a decline in the Euro. In the Asia-Pacific region, the benefits of positive positioning in Japan and Singapore were offset by positioning in Hong Kong and Australia. Stock selection also hurt returns during the period as sub-par stock selection in the Asia-Pacific region, which was primarily focused in Hong Kong, more than offset positive stock selection in the U.S.
Current Strategy and Outlook: One of the most underestimated effects of the sharp recovery in credit and financial markets over the past year has been the extent to which capitalization rates or yields have compressed. While we believe yield compression to have largely run its course from trough levels, the risk remains to the upside (that yields firm further) as capital returns to the property sector and as property fundamentals continue to improve, however gradual. Listed property company management teams are getting back to the basics of running companies, which can grow earnings both via internal and external growth with a menu of financing alternatives at reasonable costs of capital. We believe that while the returns looking forward for a listed strategy cannot maintain the sharp pace of the last year, they will remain positive on the back of improving economic conditions and an associated improvement in property fundamentals.
The Fund continues to maintain a bias toward what we believe are high-quality companies and are avoiding exposure to countries at the center of the sovereign debt issues in Europe (specifically the countries and markets of Portugal, Italy, Ireland, Greece and Spain) and are also avoiding exposure to companies within the Asia-Pacific region that have significant exposure to China residential development. We remain overweight sectors and countries offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies that we believe offer more transparency, strong balance sheets and good, experienced management teams.
| |
| (1) | The S&P Developed Property Index (formerly, the S&P/Citigroup BMI World Property Index) is an unmanaged float-adjusted index which defines and measure the investable universe of publicly traded property companies domiciled in developed countries that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Sun Hung Kai Properties Ltd. | | | 5.7 | % |
| Mitsubishi Estate Co., Ltd. | | | 4.1 | % |
| Mitsui Fudosan Co., Ltd. | | | 3.9 | % |
| Vornado Realty Trust | | | 3.1 | % |
| Cheung Kong Holdings Ltd. | | | 2.9 | % |
| Macerich Co. | | | 2.9 | % |
| Simon Property Group, Inc. | | | 2.9 | % |
| Equity Residential | | | 2.7 | % |
| Westfield Group | | | 2.6 | % |
| Sumitomo Realty & Development Co., Ltd. | | | 2.3 | % |
| | | |
| | * | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. | |
Portfolio holdings are subject to change daily.
6
ING Global Value Choice Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Value Choice Fund (“Global Value Choice” or the “Fund”) seeks long-term capital appreciation. The Fund is managed by David B. Iben, CFA, Portfolio Manager of Tradewinds Global Investors, LLC (“Tradewinds”) — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 13.70% compared to the MSCI All Country World IndexSM (1) (“MSCI ACWI”) which returned 9.78% for the same period.
Portfolio Specifics: The Fund had positive absolute returns during the six month period ending April 30, 2010 and outperformed its benchmark, the MSCI ACWI.
Much of the Fund’s relative outperformance for the period was due to its investments in the materials and consumer staples sectors. The Fund’s return in the period was negatively impaired on a relative basis by its investments in the consumer discretionary and information technology sectors. The Fund continues to maintain a significant relative overweight in the materials sector and relative underweight in the financials sector.
Two of the period’s top absolute performers were from the materials sector. Canadian-based gold mining company Gabriel Resources Ltd. was the Fund’s top contributor to performance during the period. The company owns 80% of the Rosia Montana Project, one of the largest undeveloped gold projects in the world. In November, the company announced the addition of a major shareholder, and the news significantly lifted the company’s stock price. In addition, U.S.-based Newmont Mining Corp., with operations in Latin America, Africa, and Australia, was among the best contributors to performance.
Consumer staples sector holding Tyson Foods, Inc., a meat protein and food production company, also rallied during the period as a result of improved operating performance and significantly improved investor sentiment. Protein prices were higher on stronger demand and decreased supply, while margins have improved due to lower input costs.
Thales S.A., a French manufacturer of aerospace systems and industrial electronics products, was the Fund’s single largest detractor from performance during the period. The company’s shares declined notably in mid-February after the company reported fiscal year 2009 earnings results below analyst expectations and issued a cautious outlook for 2010. Despite the share price weakness, we believe the company’s long-term fundamentals, as well as its intrinsic value, remain the same. We took advantage of the security’s weakness and added to the position.
Another detractor from the Fund’s performance during the period was Cameco Corp. (“Cameco”). Cameco is the world’s largest uranium producer. Among other assets, the company owns the Cigar Lake mine in northern Saskatchewan’s Athabasca basin which we believe has the potential of providing about 10% of the world’s uranium supply when operation commences. The stock underperformed due to recent weakness in the mineral’s spot price. We also took the opportunity to add to this position in the period.
Current Strategy and Outlook: While we ended the period on a positive note, the questions for investors are many. Where are the next engines for growth? What type of fiscal measures will be needed for governments to gain control of their finances? In the U.S., what are the implications for corporate profits after the passage of sweeping healthcare legislation? Will the devaluation of currencies lead to higher inflation or will deflation take center stage? We believe that focusing on top down themes to construct investment portfolios can be a perilous exercise. For instance, risk avoidance was rewarded as much in 2008 as risk taking was in 2009. As measured by the S&P 500® Index, the top 50 performers in 2008 increased, on average, by less than 10% in 2009 while the bottom 50 performers in 2008 doubled in 2009. We believe that finding companies that trade at significant discounts to their intrinsic values is the key to delivering solid absolute and relative returns for investors. Understanding the dynamics of a business and focusing on those value opportunities that lay in franchise quality companies, in our view, will reward investors over time.
| |
| (1) | The MSCI ACWIsm is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Newmont Mining Corp. | | | 4.5 | % |
| Barrick Gold Corp. | | | 4.4 | % |
| Nippon Telegraph & Telephone Corp. | | | 4.0 | % |
| Cameco Corp. | | | 2.8 | % |
| Thales S.A. | | | 2.7 | % |
| Gabriel Resources Ltd. | | | 2.1 | % |
| Wal-Mart Stores, Inc. | | | 2.1 | % |
| Gold Fields Ltd. | | | 2.0 | % |
| Pfizer, Inc. | | | 2.0 | % |
| ERG S.p.A. | | | 2.0 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral and ING Institutional Prime Money Market Fund – Class I. | |
Portfolio holdings are subject to change daily.
7
ING Asia-Pacific Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Asia-Pacific Real Estate Fund (“Asia-Pacific Real Estate” or the “Fund”) seeks to provide investors with high total return, consisting of capital appreciation and current income. The Fund is managed by T. Ritson Ferguson, Chief Investment Officer, CFA and Steven D. Burton, Managing Director, CFA, both of ING Clarion Real Estate Securities LLC — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 4.47% compared to the Standard & Poor’s (“S&P”) Asia-Pacific Property Index(1) which returned 5.58% for the same period.
Portfolio Specifics: Asia-Pacific real estate stocks, represented by the S&P Asia-Pacific Property Index, advanced by more than 5% over the past six months, as improving capital market conditions and improving economic conditions benefited investors. Performance was led by property companies in Singapore, Japan and Australia. Property companies in the Asia-Pacific region remained positive in the face of increased concerns caused by measures introduced by the Chinese government intended to cool demand for property and temper otherwise strong economic growth.
Macro-economic news has been uneven, but we believe on balance it supports the thesis that global economic conditions continue to improve. In the Asia-Pacific region, Singapore’s first quarter 2010 advance gross domestic product (“GDP”) estimate came in at 13.1% year-on-year, which caused the government to revise its full-year forecast to the 7% to 9% range from the 4.5% to 6.5% range. China’s first quarter 2010 GDP rose 11.9% year-on-year, ahead of expectations and above the government’s apparent comfort zone. Both the Singapore and Chinese governments have responded to the robust economic numbers with measures designed to curb liquidity and dampen demand — Singapore through its currency exchange rate and China by announcing a series of measures intended to curb speculative demand for residential properties.
While central bank policy remains accommodative in the Western markets, policy is tightening in the Asia-Pacific region. Policy rates in the Asia-Pacific region have an upward bias, with the exception of Japan. The delicate balance remains between Western markets (plus Japan) which are attempting to nurse growth back to a self-sustaining pace and Asian markets, which are attempting to cool economic growth that may be excessive.
Property fundamentals are beginning to reflect improving underlying markets. With the first quarter earnings season largely behind us, most property companies have reported earnings and opined on operating trends. Themes include: (1) improving operating numbers; (2) improving expectations; (3) further yield compression; and (4) continued capital raising, both equity and debt.
The Fund underperformed the benchmark for the period, primarily as the result of stock selection. While stock selection was positive in Japan and Australia during the period, this benefit was more than offset by sub-par stock selection in Hong Kong and, to a lesser degree, Singapore. This shortfall was largely the result of the underperformance by fund holdings that have exposure to mainland China residential development (Shimao Property Holdings Ltd., China Resources Land Ltd., Sino-Ocean Land Holdings Ltd. and Keppel Land Ltd.). Country selection decisions hurt performance as an underweight to the outperforming Singapore market overshadowed the value added by an overweight to the outperforming Japanese market.
Current Strategy and Outlook: The Fund continues to maintain a bias toward what we believe are high-quality companies. We remain overweight sectors and countries offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies offering, in our opinion, more transparency, strong balance sheets and good, experienced management teams. Asia-Pacific property companies generally trade at discounts to underlying real estate value in our estimate.
We believe the rationale for an Asia-Pacific listed property strategy remains very much intact, including the opportunity for diversification in the region, access to solid long-term underlying property fundamentals and the continued expansion of the REIT structure throughout the region. We believe this remains true even under the likely scenario of continued government austerity measures to cool demand in the property sector and temper otherwise strong economic growth.
| |
| (1) | The S&P Asia-Pacific Property Index is an unmanaged float-adjusted index which defines and measures the investable universe of publicly traded property companies domiciled in developed countries in the Asia Pacific region, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. It includes the reinvestment of dividends but is gross of withholding taxes on dividends and does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Westfield Group | | | 10.2 | % |
| Mitsubishi Estate Co., Ltd. | | | 9.5 | % |
| Sun Hung Kai Properties Ltd. | | | 9.2 | % |
| Mitsui Fudosan Co., Ltd. | | | 7.9 | % |
| Cheung Kong Holdings Ltd. | | | 5.9 | % |
| Sumitomo Realty & Development Co., Ltd. | | | 5.2 | % |
| Hang Lung Properties Ltd. | | | 3.9 | % |
| Macquarie Goodman Group | | | 3.2 | % |
| Hongkong Land Holdings Ltd. | | | 3.1 | % |
| Japan Real Estate Investment Corp. | | | 2.9 | % |
Portfolio holdings are subject to change daily.
8
ING Emerging Countries Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Emerging Countries Fund (“Emerging Countries” or the “Fund”) seeks maximum long-term capital appreciation. The Fund is managed by Jan-Wim Derks and Michael Bootsma, Portfolio Managers of ING Investment Management Advisors, B.V. (“IIMA”) — the Sub-Adviser.*
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 12.23%, compared to the MSCI Emerging Markets Indexsm(1) (“MSCI EM Indexsm”), which returned 12.37% for the same period.
Portfolio Specifics: After the unprecedented stock market rally that started in early March 2009, markets advanced at a more moderate pace during the final months of 2009 and the first four months of 2010. Market volatility remained high over the period. The combination of an ongoing global economic recovery and loose monetary policy provided a benign backdrop for global equities, including equities in emerging markets. Strong economic growth numbers from China helped commodity prices remain at high levels. This supported the macro conditions of commodity exporting countries and helped their currencies appreciate. Emerging markets slightly outperformed developed markets.
For the reporting period, the Fund outperformed the benchmark before deducting fees and expenses, but slightly lagged the benchmark after fees and expenses. During the period, the Fund focused on three key investment themes: 1) a high level of risk appetite among investors, 2) strong commodity prices and 3) domestic demand-driven growth in many emerging markets. The Fund played the risk appetite theme by means of overweight positions in high-risk, Eastern Europe markets such as Hungary, Poland and Turkey. Overweight positions in commodity exporting countries such as Indonesia, Russia and Brazil reflected the commodity theme. The domestic demand theme was incorporated through overweight positions in China, Egypt and Peru. The Fund stayed underweight in the traditionally defensive markets of Malaysia, Israel and Chile.
At the sector level, the Fund was overweight energy, consumer discretionary and consumer staples. We believe the consumer sectors are the best way to play the domestic demand theme. The middle class population is growing rapidly in many emerging countries and, with real wages growing, is becoming an increasingly important driver of economic growth. We funded the overweight positions by underweighting defensive sectors such as healthcare, telecommunications and utilities.
At the stock level, the Fund held significant overweight positions in the main emerging European banks: OTP Bank Nyrt in Hungary, Bank Pekao S.A. in Poland, Turkiye Garanti Bankasi A/S in Turkey and Sberbank of Russian Federation in Russia. We consider these banks to be good quality, liquid proxies of their respective markets. In the commodity sector the Fund held significant positions in copper producer Antofagasta PLC in Chile, coal miner China Shenhua Energy Co. Ltd. (“Shenhua Energy”) in China, oil producer Pacific Rubiales Energy Corp. (“Pacific Rubiales”) in Colombia and Impala Platinum Holdings Ltd. in South Africa. In the consumer space, the Fund held positions in Kia Motors Corp. (“Kia Motors”) in South Korea, Parkson Retail Group Ltd. in China, PT Astra International Tbk in Indonesia, BR Malls Participacoes S.A. in Brazil and Femsa in Mexico.
The overweight positions in China, Indonesia, Hungary, Russia, Turkey and Peru worked well. On the other hand, our underweight positions in Chile, Mexico, India and South Korea detracted from performance. At stock level, some names that added significant value were oil firm Pacific Rubiales in Colombia, car producer Kia Motors in South Korea, and web search engine Baidu.com in China. Shenhua Energy, Industrial and Commercial Bank of China Ltd. and developer CC Land Holdings Ltd. in China were among the worst detractors from absolute performance.
Current Strategy & Outlook: We believe that positive global growth momentum and the supportive global liquidity environment will continue to benefit emerging equity markets. The impact of Chinese tightening measures and possible contagion effects from the Greek tragedy will probably not be enough to derail the strong growth momentum. Interest rates will presumably remain low in developed markets, as well as in most emerging markets.
The Fund continues to increase its exposure to markets — such as Egypt, Indonesia, China and Poland — that are driven primarily by strong domestic demand growth. The Fund is keeping sizeable underweights in global cyclical markets such as Taiwan and South Korea, as well as underweights in defensive markets like Chile and Malaysia. Israel will be reclassified from an emerging to a developed market at the end of May 2010. Consequently, the Fund will sell its position in Israeli pharmaceutical company Teva Pharmaceutical Industries Ltd. in coming months. The Fund continues to prefer consumer discretionary and consumer staples, mainly at the expense of telecommunications and utilities.
| |
| * | Effective April 1, 2010, Roberto Lampl is no longer a portfolio manager to the Fund. |
| |
| (1) | The MSCI EM Indexsm is an unmanaged index that measures the performance of securities listed on exchanges in developing nations throughout the world. It includes the reinvestment of dividends and distributions net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Samsung Electronics Co., Ltd. | | | 4.2 | % |
| CIA Vale do Rio Doce | | | 2.4 | % |
| Industrial and Commercial Bank of China Ltd. | | | 2.3 | % |
| HON HAI Precision Industry Co., Ltd. | | | 2.0 | % |
| Petroleo Brasileiro S.A. | | | 2.0 | % |
| Banco Itau Holding Financeira S.A. ADR | | | 1.9 | % |
| Sberbank of Russian Federation | | | 1.8 | % |
| Taiwan Semiconductor Manufacturing Co., Ltd. | | | 1.8 | % |
| Posco | | | 1.8 | % |
| Pacific Rubiales Energy Corp. | | | 1.8 | % |
Portfolio holdings are subject to change daily.
9
ING European Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING European Real Estate Fund (“European Real Estate” or the “Fund”) seeks to provide investors with high total return, consisting of capital appreciation and current income. The Fund is managed by T. Ritson Ferguson, Chief Investment Officer, CFA and Steven D. Burton, Managing Director, CFA of ING Clarion Real Estate Securities, LLC — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of (4.78)% compared to the Standard & Poor’s Europe Property Index(1) (“S&P Europe Property Index”), which returned (6.55)% for the same period.
Portfolio Specifics: The past six months have proved to be a challenging period for the region’s listed real estate markets as concerns surrounding sovereign debt issues in Greece and possibly elsewhere in the eurozone have weighed on the markets. Within the European region, the return differential between countries during the period was quite substantial, ranging from a positive return posted by Austria, the best-performing market during the period, to a negative return posted by Greece, the poorest-performing market during the period. In all, property companies remain challenged by headwinds which deserve continued scrutiny as we move into the next phase of economic recovery.
To support growth, central bank policy generally remains accommodative as the Bank of England and the European Central Bank have kept policy rates on hold as bankers target a macro-economic policy to sustain economic growth, which remains a critical backdrop to the recovery in property fundamentals.
We believe property fundamentals are beginning to reflect improving underlying markets. With the first quarter earnings season largely behind us, most property companies have reported earnings and opined on operating trends. Themes include: (1) improving operating numbers which are either “less bad” than comparable numbers or even positive; (2) improving expectations; (3) further yield compression; and (4) continued capital raising, both equity and debt.
The Fund outperformed the benchmark for the period as positive stock selection offset the slight drag of country allocation decisions. Stock selection was especially strong in the U.K., where positioning of the Fund benefited from the outperformance of office companies Great Portland Estates PLC and Derwent London PLC, both of which posted positive returns during the period. Stock selection in Austria, France and the Netherlands also added significant value over the past six months. Country allocation decisions were mixed as underweights to the outperforming markets of Switzerland and Austria hurt performance during the period.
Current Strategy and Outlook: The Fund continues to maintain a bias toward what we believe are high-quality companies and is avoiding exposure to countries at the center of the sovereign debt issues (specifically the countries and markets of Portugal, Italy, Ireland, Greece and Spain). We remain overweight sectors and countries offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies offering, in our opinion, more transparency, strong balance sheets and good, experienced management teams. We believe European property companies are trading at modest discounts to fair value, a little more so in the U.K. than on the Continent.
We believe the investment rationale for a European listed property strategy remains very much intact including diversification via low correlation to broad equities and bonds, attractive current yield, attractive valuations and the gradual spread of the REIT structure to an increased number of countries. We believe that this remains true even under the scenario of slowing global economic growth over the coming year.
| |
| (1) | The S&P Europe Property Index is an unmanaged float-adjusted index which defines and measures the investable universe of publicly traded property companies domiciled in developed European countries, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. It includes the reinvestment of dividends but is gross of withholding taxes on dividends and does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Unibail | | | 19.4 | % |
| Land Securities Group PLC | | | 8.3 | % |
| Hammerson PLC | | | 5.1 | % |
| Klepierre | | | 5.1 | % |
| British Land Co. PLC | | | 5.0 | % |
| Corio NV | | | 4.1 | % |
| Swiss Prime Site AG | | | 3.7 | % |
| Norwegian Property ASA | | | 3.3 | % |
| Derwent Valley Holdings PLC | | | 3.2 | % |
| Segro PLC | | | 2.8 | % |
Portfolio holdings are subject to change daily.
10
ING Foreign Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Foreign Fund (“Foreign” or the “Fund”) seeks long-term growth of capital. The Fund is managed by Rudolph-Riad Younes, CFA Managing Director and Head of International Equity and Richard Pell, Chief Investment and Chief Executive Officer, both of Artio Global Management LLC — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 4.51% compared to the MSCI All Country World (ex-US) IndexSM(1)(“MSCI ACWI (ex-US)”), which returned 5.76% for the same period.
Portfolio Specifics: Most markets posted solid returns against an improving economic backdrop during the period. Emerging markets outpaced developed markets, with the notable exception of China which barely remained in positive territory. News out of Greece had a negative impact on markets toward the end of the reporting period as the credit crisis confronting Greece and Portugal has ignited concerns of contagion to other European countries with similar fiscal positions.
For the period, the Fund lagged behind its benchmark. Stock selection in emerging markets detracted as did the Fund’s underweight to and stock selection in Japan, while UK stock selection was positive. Within Continental Europe, the decision to underweight banks in Spain and Greece was positive. Additionally, the decision to hedge a portion of the Fund’s euro exposure back to the U.S. dollar contributed to results.
Stock selection in China and South Korea detracted from performance. In particular, China Construction Bank Corp and Industrial & Commercial Bank of China (Asia) Ltd. underperformed. Within Central and Eastern Europe, the Ukraine, Russia and Hungary positively contributed to performance, including positions in UkrTelecom and Ukraine Social Bank (Ukraine) and OTP Bank Nyrt (Hungary).
From a sector perspective, information technology underperformed, due primarily to two positions in Taiwan. Weakness in Gazprom ADS and Lukoil ADS (Russia) contributed to the underperformance in the energy sector. On a positive note, companies held within the materials sector outperformed, including Rio Tinto Ltd. (Australia), Rio Tinto PLC and Xstrata PLC (UK) as well as MMC Norilsk Nickel and Evraz Group SA (Russia). Within financials, stock selection within the UK had a positive effect, however the Fund’s positions in Ageas NV (Belgium), Mediobanca Banca di Credito Finanziario and Unicredito Italiano (Italy) and BNP Paribas (France) underperformed.
Current Strategy and Outlook: We believe that in the near and intermediate term, the concerns about the solvency of Greece and rest of the periphery European Union nations will have a negative effect on Eurozone economic activity, business investment, and consumer spending. Within Europe, we favor defensive growth companies with strong brands and exposure to the growth dynamics of emerging markets. In addition to avoiding the banks in Portugal, Ireland, Greece and Spain, we have moved underweight in financials (both banks and insurers), particularly in Europe. We have also reduced the Fund’s weight in cyclicals, particularly materials stocks. We have put in place some currency hedges out of the euro and Central & Eastern European currencies back to the dollar as a defensive move. We remain underweight in Japan where demographic, debt, and political issues continue to plague the macro picture. Given the current macro picture, even the most stalwart emerging markets are suffering. We have focused our investments to specific areas within the emerging markets. We are avoiding Chinese financials and instead are focusing on the domestic consumer in China. Within India, as the country builds out its infrastructure, we see opportunities within steel, engineering and cement companies. Our Central & Eastern European exposure is skewed to those countries with lower debt/gross domestic product ratios and where we believe there is potential for strong long term growth. Given recent market turmoil, we continue to look for attractively priced opportunities.
| |
| (1) | The MSCI ACWI (ex-US) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Sberbank of Russian Federation | | | 1.9 | % |
| Novartis AG | | | 1.7 | % |
| Nestle S.A. | | | 1.5 | % |
| Komercni Banka A/S | | | 1.4 | % |
| Fraport AG Frankfurt Airport Services Worldwide | | | 1.3 | % |
| Erste Bank der Oesterreichischen Sparkassen AG | | | 1.3 | % |
| Barrick Gold Corp. | | | 1.3 | % |
| Reckitt Benckiser PLC | | | 1.2 | % |
| GlaxoSmithKline PLC | | | 1.2 | % |
| Market Vectors – Gold Miners ETF | | | 1.2 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral and ING Institutional Prime Money Market Fund – Class I. | |
Portfolio holdings are subject to change daily.
11
ING Greater China Fund
Portfolio Managers’ Report
Industry Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Greater China Fund (“Greater China” or the “Fund”) seeks long-term capital appreciation. The Fund is managed by Bratin Sanyal, Oscar Leung Kin Fai, CFA and Michael Hon Lung Chiu, CFA of ING Investment Management Asia/Pacific (Hong Kong) Limited — the Sub-Adviser.*
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 2.64% compared to the MSCI All Countries Golden Dragon Index(1), which returned 3.88% for the same period.
Portfolio Specifics: Economic growth in China remained strong during the reporting period. The trade sector rebounded sharply as export growth increased. To moderate liquidity growth, Chinese authorities raised the required reserve ratio of major banks in China three times after the start of the year. The state council also announced various mortgage and land sale policies to prevent the property market from overheating. Facing such headwinds, the Chinese market underperformed the region and some developed markets during the reporting period.
Hong Kong slightly outperformed the regional market. Economic growth was strong and unemployment declined. Thanks to the low interest rate environment, improving employment situation and the low level of new property supply, real estate prices bounced back sharply, surpassing pre-crisis levels in 2008.
Taiwan outperformed the regional markets thanks to the strong recovery in the technology sector. Economic data also confirmed that a solid recovery occurred across external and domestic sectors. Like many other Asian central banks, the Taiwan central bank kept interest rates unchanged during the period, which helped domestic liquidity.
The Fund underperformed its benchmark for the reporting period, due to negative sector allocation effects. Underweight positions in information technology and consumer staples detracted the most from relative results. Another significant detractor was the Fund’s overweight to real estate. Security selection generated positive results and partially offset the drag from asset allocation. The Fund benefited from its holdings of small to mid cap companies such as Chow Sang Sang Holdings International Ltd. and Real Gold Mining Ltd., as rising gold prices and strong jewelry demand from Chinese consumers benefited the stocks. Overweights in selected energy companies such as Yanzhou Coal Mining Co. Ltd. also helped returns thanks to strong volume growth.
The worst detractor from relative results for the period was Glorious Property Holdings Ltd. The Hong Kong government, like its Chinese counterpart, implemented measures to moderate property prices. Some of the stocks in the Fund’s portfolio, such as Kerry Properties Ltd. and New World Development Co. Ltd., underperformed as a result.
Current Strategy and Outlook: The Chinese government has made it clear it wants to prevent home prices from rising too rapidly. While property stocks are unlikely to perform against such a backdrop, we believe share prices already discount much of the bad news and we therefore maintain a neutral view on the sector. Government banking regulators have announced guidelines requiring banks to impose stricter lending criteria, greater transparency and higher provisions for non-performing loans. We believe these measures would reduce market liquidity but in the longer term would save the banking system from greater problems. We therefore retain the Fund’s overweight to the banking sector, given the sector’s attractive valuations.
In our opinion, valuations in China have come back to an attractive level after the recent pullback and so we are maintaining the Fund’s overweight. We continue to like the stock picking ideas in Hong Kong, as they are a cheaper proxy to owning the growth story in China. We believe the corporate tax cuts proposed by the president will help Taiwan to regain its competitiveness against Hong Kong and Singapore. They should benefit traditional industries over the technology sector, given the lack of tax incentives on capital expenditure for the former.
We remain cautious about companies with significant exposure to Europe. We believe Taiwan’s low interest rates, excess savings and improving cross-strait relations may benefit non-technology asset prices. Nevertheless, the stock market of Taiwan is still reliant upon external demand led by a technology recovery. Worries about second half of 2010 still linger; as a result, the Fund is underweight Taiwan with a focus on domestic versus external sectors.
| |
| * | Effective February 26, 2010, Nicholas Toovey is no longer a portfolio manager to the Fund. |
| |
| (1) | The MSCI All Countries Golden Dragon Index is a broad-based, unmanaged index of common stocks traded in China, Hong Kong and Taiwan. It is an aggregate of the MSCI Hong Kong Index, the MSCI China Free Index and the MSCI Taiwan Index. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| China Mobile Ltd. | | | 4.9 | % |
| China Construction Bank | | | 4.9 | % |
| Industrial and Commercial Bank of China Ltd. | | | 4.7 | % |
| Wharf Holdings Ltd. | | | 3.3 | % |
| China Life Insurance Co., Ltd. | | | 3.2 | % |
| Taiwan Semiconductor Manufacturing Co., Ltd. | | | 3.0 | % |
| China Petroleum & Chemical Corp. | | | 2.6 | % |
| Yanzhou Coal Mining Co., Ltd. | | | 2.5 | % |
| Hong Kong Exchanges and Clearing Ltd. | | | 2.5 | % |
| Chow Sang Sang Holdings International Ltd. | | | 2.3 | % |
Portfolio holdings are subject to change daily.
12
ING Index Plus International Equity Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Index Plus International Equity Fund (“Index Plus International Equity” or the “Fund”) seeks to outperform the total return performance of the MSCI Europe, Australasia and Far East® Index(1) (“MSCI EAFE® Index”) while maintaining a market level of risk. The Fund is managed by Carl Ghielen, Portfolio Manager and Martin Jansen, Portfolio Manager, both of ING Investment Management Advisors B.V. — the Sub Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 3.16% compared to the MSCI EAFE® Index, which returned 2.48% for the same period.
Portfolio Specifics: The Fund’s strategy is designed to add value to the MSCI EAFE® benchmark through bottom-up security selection on the basis of customized sector models while maintaining approximate benchmark weights of regions/countries, sectors and industries represented in the benchmark. The active risk is substantially controlled by the relatively large number of securities in the portfolio (generally between 280 and 380). As a first step, the best ranked 200 stocks are selected for inclusion across countries, sectors and industries. To ensure that appropriate index weights and an index-like profile are maintained, an additional 80-180 of the next most attractive securities are added. The Fund is rebalanced monthly to maintain the desired tilt to stocks ranking well in the individual sectors and industries represented in the benchmark.
The Fund’s return outperformed that of the benchmark in the reporting period due mainly to successful stock selection in Japan. Security positioning within Europe also added value. By design, the Fund’s sector and regional weights approximate that of the benchmark, which resulted in a net neutral contribution from regional and sector allocations. The excess return (i.e. Fund return minus benchmark return) was therefore substantially the result of security selection within the regional and sector construct.
The predictive power of the individual factors included in each of the regional sector models for a particular reporting period substantially determines the stock selection result in each sector. For this reporting period, our positioning among industrials had the largest positive impact, while more-modest contributions were recorded in the financials, energy and consumer staples sectors. Adverse selection in materials detracted somewhat from the result.
Current Strategy and Outlook: By design, the Fund maintains approximate benchmark weights of the regions, economic sectors and industries constituting the MSCI EAFE® Index. We expect the Fund to track the benchmark relatively closely. Stock selection flows from the in-sector/industry ranking models. Portfolio construction and risk control are utilized to ensure the characteristics of the Fund are within an acceptable band around the benchmark. Our most attractively ranked stocks may have individual overweights of up to half a percentage point, while for risk-control purposes the maximum allowable underweight per security also is half a percentage point. Within this context, the Fund currently has a modest tilt towards lower valuation and smaller capitalization stocks and has a resultant modest focus on stocks linked primarily to local economies. The current portfolio of stocks generated an historic earnings growth slightly below that of the index but is expected to meet index earnings growth. The Fund’s dividend yield, return on equity and leverage are similar to the index.
| |
| (1) | The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| HSBC Holdings PLC | | | 1.8 | % |
| BP PLC | | | 1.3 | % |
| Nestle S.A. | | | 1.3 | % |
| Roche Holding AG – Genusschein | | | 1.3 | % |
| Novartis AG | | | 1.2 | % |
| Royal Dutch Shell PLC – Class B | | | 1.2 | % |
| BHP Billiton Ltd. | | | 1.2 | % |
| Vodafone Group PLC | | | 1.1 | % |
| Telefonica S.A. | | | 1.1 | % |
| Toyota Motor Corp. | | | 1.1 | % |
Portfolio holdings are subject to change daily.
13
ING International Capital Appreciation Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Capital Appreciation Fund (“International Capital Appreciation” or the “Fund”) seeks capital appreciation. The Fund is managed by a team of investment professionals led by Thomas R.H. Tibbles, CFA, Barry A. Lockhart, CFA, Trevor Graham, CFA, and Patrick Tan of Hansberger Global Investors, Inc. (“HGI”) — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 6.53% compared to the MSCI All Country World (ex-US) IndexSM (1) (“MSCI ACWI ex-USSM”), which returned 5.76% for the same period.
Portfolio Specifics: The six month period ended April 30, 2010 ended with the index posting a positive return as the markets continued to post gains in most major regions. During the period, investors continued to buy equities and invest in the emerging markets. North America (Canada) was the strongest performing region during the period, followed by the emerging markets. Japan and Pacific ex-Japan also posted strong positive returns during the period, while Europe posted a slightly positive return which lagged the overall index. Information technology, materials and industrials were the best performing areas in the market from a sector perspective. Some of the more defensive areas of the market, such as telecommunication services and utilities, as well as financials lagged the broader market.
The Fund’s return was above that of the benchmark over the six month period. From a sector attribution perspective, information technology was the largest contributor to relative performance as stocks such as ARM Holdings PLC and Autonomy Corp. PLC enjoyed a period of strong performance. The healthcare and consumer discretionary sectors also contributed to relative performance with stocks such as Novo-Nordisk A/S and Adidas AG posting positive returns. Five sectors detracted from relative performance, led by the industrials, energy and financials sectors.
From a regional perspective, Europe was the largest contributor on a relative basis with stocks like Millicom International Cellular S.A. posting strong gains during the period. Japan and Pacific ex-Japan were also relative contributors, driven by strong returns in the stocks of Fanuc Ltd. and Li & Fung Ltd. Agile Property Holdings Ltd., a Chinese property company, and China Communications Construction Co. Ltd. detracted from relative performance during the period as the Fund’s holdings in emerging markets underperformed the region. Canada was also a detractor from relative performance during the period. The majority of the outperformance on a regional basis was driven by stock selection during the six month period.
Current Strategy and Outlook: We believe that the rally in international equity markets has been powered by the anticipation of a global economic recovery and relief that the worst case scenario has not occurred; and further that emerging markets will continue to be the engine of growth while growth in the developed economies is likely to remain muted.
In our opinion, while the pace of economic growth has slowed dramatically, the long term outlook for many economies — especially the emerging markets — is still very much alive. We remain optimistic on China with companies there continuing to benefit from infrastructure spending and government stimulus. Brazil and India are also growing faster than the developed world.
Focusing on what we believe are high quality names with good secular growth potential should stand us in good stead. Maintaining a well diversified portfolio of what we believe are high quality international companies should prove beneficial as investors continue to return to equities and global economic growth remains positive.
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| (1) | The MSCI ACWI (ex-US) is a free float-adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the U.S. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Autonomy Corp. PLC | | | 2.5 | % |
| Vedanta Resources PLC | | | 2.2 | % |
| Samsung Electronics Co., Ltd. GDR | | | 2.0 | % |
| Vale S.A. ADR | | | 2.0 | % |
| Rio Tinto Ltd. | | | 2.0 | % |
| ARM Holdings PLC | | | 1.9 | % |
| Millicom International Cellular S.A. | | | 1.8 | % |
| HDFC Bank Ltd. ADR | | | 1.8 | % |
| Fanuc Ltd. | | | 1.7 | % |
| Electricite de France | | | 1.7 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
14
ING International Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Real Estate Fund (“International Real Estate” or the “Fund”) seeks to provide investors with high total return. The Fund is managed by T. Ritson Ferguson, Chief Investment Officer, CFA and Steven D. Burton, Managing Director, CFA of ING Clarion Real Estate Securities, LLC — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 0.90% compared to the Standard & Poor’s (“S&P”) Developed ex-US Property Index(1) which returned 2.96% for the same period.
Portfolio Specifics: International property companies edged higher during the past six months as positive returns in North America and the Asia-Pacific region more than offset negative returns in Europe as concerns surrounding sovereign debt issues in Greece and possibly elsewhere in the eurozone weighed on the stocks, especially of late. Property companies in the Asia-Pacific region have remained positive in the face of increased concerns caused by measures introduced by the Chinese government intended to cool demand for property and temper otherwise strong economic growth. In all, property companies moved forward through headwinds which deserve continued scrutiny as we move into the next phase of economic recovery.
Macro-economic news has been choppy, but we believe on balance it supports the thesis that global economic conditions continue to improve. In the Asia-Pacific region, recent economic data (most notable in China and Singapore) is coming in ahead of consensus expectations and above each government’s apparent comfort zone. Both the Singapore and Chinese governments have responded to the robust economic numbers with measures designed to curb liquidity and dampen demand — Singapore through its currency exchange rate and China by announcing a series of measures intended to curb speculative demand for residential properties. In the European region, the European Central Bank efforts to deal with Greece’s debt problems have underwhelmed the markets thus far, and the emerging debt issues with Spain, Portugal, Ireland, and Italy cast a negative shadow on the strength of economic recovery from this region.
As a result, central bank policy remains accommodative in the West but is tightening in the East. The Bank of Canada, Bank of England and central banks in Europe ex-Scandinavia have kept policy rates on hold. Policy rates in the Asia-Pacific region on the other hand have an upward bias, with the exception of Japan. The delicate balance remains between Western markets (plus Japan) which are attempting to nurse growth back to a self-sustaining pace and Asian markets, which are attempting to cool economic growth that may be excessive. The ability for macro-economic policy to successfully support and sustain economic growth remains a critical backdrop to the recovery in property fundamentals.
Fund performance trailed the benchmark during the period, primarily as a result of stock selection and country selection decisions within the Asia-Pacific region, primarily in Hong Kong and, to a lesser degree, Singapore. This shortfall was largely the result of underperformance by fund holdings that have exposure to mainland China residential development (Shimao Property Holdings Ltd., Sino-Ocean Land Holdings Ltd. and Keppel Land Ltd.). Country selection in the region also detracted from relative performance as an underweight to the outperforming Singapore market overshadowed the value added by an overweight to the outperforming Japanese market. Within Europe, the benefit of positive country allocation decisions that were the result of a continued underweight to Continental Europe was offset by sub-par stock selection, which was focused in the French and U.K. property markets.
Current Strategy and Outlook: One of the most underestimated effects of the sharp recovery in credit and financial markets over the past year has been the extent to which capitalization rates or yields have compressed. While we believe yield compression to have largely run its course from trough levels, the risk remains to the upside (that yields firm further) as capital returns to the property sector and as property fundamentals continue to improve, however gradual. Listed property company management teams are getting back to the basics of running companies, which can grow earnings both via internal and external growth with a menu of financing alternatives at reasonable costs of capital. While, in our opinion, the returns looking forward for a listed strategy cannot maintain the sharp pace of the last year, we believe that they will remain positive on the back of improving economic conditions and an associated improvement in property fundamentals.
The Fund continues to maintain a core positioning in what we believe are high-quality companies. We remain overweight sectors and geographies offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies that we believe offer more transparency, strong balance sheets and good, experienced management teams. This focus on quality has driven our longer-term outperformance.
In our opinion, international property companies remain attractively valued. We estimate the average international property company is trading at a discount to our internal estimate of inherent private real estate market value.
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| (1) | The S&P Developed ex-US Property Index is an unmanaged float-adjusted index which defines and measure the investable universe of publicly traded property companies domiciled in developed countries, outside of the United States, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. It includes the reinvestment of dividends but is gross of withholding taxes on dividends and does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Sun Hung Kai Properties Ltd. | | | 8.8 | % |
| Mitsubishi Estate Co., Ltd. | | | 7.4 | % |
| Mitsui Fudosan Co., Ltd. | | | 6.2 | % |
| Cheung Kong Holdings Ltd. | | | 5.1 | % |
| Westfield Group | | | 4.8 | % |
| Sumitomo Realty & Development Co., Ltd. | | | 3.7 | % |
| Unibail | | | 3.3 | % |
| Land Securities Group PLC | | | 2.9 | % |
| Hongkong Land Holdings Ltd. | | | 2.2 | % |
| Macquarie Goodman Group | | | 2.2 | % |
Portfolio holdings are subject to change daily.
15
ING International SmallCap Multi-Manager Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International SmallCap Multi-Manager Fund (“International SmallCap Multi-Manager” or the “Fund”) seeks maximum long term capital appreciation. Effective January 27, 2010, the Fund’s assets are managed by two sub-advisers — Acadian Asset Management LLC (“Acadian”) and Schroder Investment Management North America Inc. (“Schroders”). Each manages a portion of the Fund’s assets that is allocated to the sub-adviser.* The following individuals are primarily responsible for the day-to-day management of their respective portions of the Fund: John R. Chisholm, CFA, Executive Vice President and Co-Chief Investment Officer, Matthew J. Cohen, CFA, Senior Vice President, Constantine P. Papageorgiou, CFA, Vice President, Brian K. Wolahan, CFA, and Qi R. Zeng, CFA, Senior Vice President, all Portfolio Managers of Acadian, and Matthew Dobbs, Portfolio Manager of Schroders.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 11.34% compared to the Standard & Poor’s (“S&P) Developed ex-US SmallCap Index(1) and the S&P Euro-Pacific Asia Composite (“EPAC”) SmallCap Index(2), which returned 8.95% and 6.93%, respectively, for the same period.
Portfolio Specifics: Acadian Sleeve(3) — The fund outperformed the S&P Developed ex-US SmallCap Index by approximately 8.40% over the period, as both value and smaller-cap stocks rose strongly in expectation of global economic recovery. The fund gained active return from both stock selection and country allocations relative to the benchmark. On the stock side, some of the highest active return was seen in the Netherlands, Germany and Japan, while stock selection was also positive in China, India, Switzerland, Italy, Singapore and Belgium. Banking, technology and durables holdings were most successful for the fund’s active return overall. There was some value detracted by stock selection in the U.K., Canada and Australia, in part from underexposure to Canadian materials and energy, and underperforming holdings in healthcare and staples. Positive country return in the fund was driven mainly by emerging markets, particularly the overweightings in China, India, Thailand and Taiwan. The overweighting in Japan was also beneficial. Offsetting this to a small extent was some negative return from the underweighting in Canada. Batterymarch Sleeve(3) — The fund outperformed the S&P Developed ex-US SmallCap Index by approximately 0.89% on a gross(4) basis for the portion of the period during which we managed assets (through January 27). During this period the market rewarded stocks with broader fundamentals rather than just cheapness, as was the case earlier in 2009. This environment favored our investment process which is based on broad fundamentals. Stock selection added value in continental Europe, most notably in the information technology and energy sectors, but was more mixed in the U.K. and Japan where stock selection in the information technology sector detracted. An overweight to the commodity-driven markets of Australia, New Zealand & Canada added value, as those markets collectively had the best return in the benchmark for the period. Schroders Sleeve(3) — The fund outperformed the S&P EPAC SmallCap Index by approximately 1.10%. International equity markets made steady progress over the review period, though returns for U.S. based investors were moderated by a recovery in the dollar. Global economic recovery has continued, supported by strong corporate profits, stabilization in employment, modest recovery in capital spending and a rebound in consumer sentiment. The key contribution to positive relative performance over the period has been our overweighting of, and stock selection in, the Pacific ex Japan region. Other positive contributions came from stock selection in continental Europe, particularly in the financial, consumer discretionary and industrial sectors. A modest positive contribution has come from stock selection in Japan, with holdings in information technology and auto parts being particularly rewarding.
Current Strategy and Outlook: Acadian Sleeve(3) — The overall theme so far in 2010 is a stabilizing environment that we believe should support more normal risk conditions and a stronger focus on individual stock fundamentals. We believe this will benefit active stock selection strategies in general and our disciplined approach in particular. In our view, the market will be led by stocks with positive earnings at attractive prices. Among these, we believe high-quality stocks are a strikingly good value, both relative to other opportunities and relative to their longer term history. Schroders Sleeve(3) — We believe that the current rally in global equity markets is entering a more mature phase. Valuations, while reasonable, are no longer at dramatically cheap levels (smallcap valuations are slightly above the historic average relative to large on a normalised basis), while the capacity for both economic data and corporate earnings to exceed expectations is more limited. We continue to find good opportunities in smaller Asian markets, which remain our sole areas of marked overweighting, skewed towards companies exploiting long-term growth trends in consumption and services such as finance and transport. Europe is the main area of underweighting, particularly in the financial and consumer cyclical areas. We made little change to the modestly underweight position in Japan, remaining focused on companies and sectors sensitive to external demand.
| |
| * | Prior to January 27, 2010, the Fund’s assets were managed by three sub-advisers — Acadian, Schroders and Batterymarch Financial Management, Inc. (“Batterymarch”). Effective January 27, 2010, Batterymarch is no longer a sub-adviser to the Fund and all assets of the Fund previously under Batterymarch’s management were re-allocated to Acadian. |
| |
| (1) | The S&P Developed ex-US SmallCap Index is an unmanaged float-adjusted index which captures the bottom 15% of companies in the developed markets, based on the cumulative market capitalization of each country, excluding the United States, within the S&P Global Broad Market Index, which covers all publicly listed equities in 47 countries with a float-adjusted market capitalization of US$100 million or greater and a minimum annual trading liquidity of US$50 million. |
| (2) | The S&P EPAC SmallCap Index is an unmanaged float-adjusted index which captures the bottom 15% of companies in the developed European and Pacific markets, based on the cumulative market capitalization of each country, within the S&P Global Broad Market Index, which covers all publicly listed equities in 47 countries with a float adjusted market capitalization of US$100 million or greater and a minimum annual trading liquidity of US $50 million. |
| (3) | For purposes of these discussions, “the fund” refers to each Sub-Adviser’s respectively managed portion of ING International SmallCap Multi-Manager Fund. Batterymarch’s discussion is for the period of November 1, 2009 through January 27, 2010. |
| (4) | Gross performance includes the reinvestment of dividends and distributions net of withholding taxes, but does not reflect fees of the Fund or other expenses of investing. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| MTU Aero Engines Holding AG | | | 1.0 | % |
| Rheinmetall AG | | | 0.8 | % |
| Valora Holding AG | | | 0.7 | % |
| Rallye SA | | | 0.7 | % |
| Home Retail Group | | | 0.7 | % |
| CGI Group, Inc. – Class A | | | 0.6 | % |
| Clariant AG | | | 0.6 | % |
| Ten Cate NV | | | 0.6 | % |
| Andritz AG | | | 0.6 | % |
| JFE Shoji Holdings, Inc. | | | 0.5 | % |
| | | |
| | * | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. | |
Portfolio holdings are subject to change daily.
16
ING International Value Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Value Fund (“International Value” or the “Fund”) seeks long-term capital appreciation. The Fund’s assets are managed by two sub-advisers — Brandes Investment Partners, L.P. (“Brandes”) and ING Investment Management Co. (“ING IM”). Each manages a portion of the Fund’s assets that is allocated to the sub-adviser. The following people are responsible for the day-to-day operations of the Fund: Glenn R. Carlson, CFA, Chief Executive Officer, Brent V. Woods, CFA, Managing Director — Investments, Amelia Maccoun Morris, CFA, Director — Investments, W. James Brown, CFA, Director — Investments, Brent Fredberg, Senior Analyst and Jeffrey Germain, Analyst, comprise the voting members of Brandes’ Large Cap Investment Committee*; Philip Schwartz, John Pairaktaridis and Joseph Vultaggio are the Portfolio Managers for ING IM.
Performance: For six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 2.19% compared to the MSCI Europe, Australasia and Far East® Index (“MSCI EAFE® Index”)(1), which returned 2.48% for the same period.
Portfolio Specifics: Brandes Sleeve(2) — Favorable results for holdings in the electronic equipment, instruments & components and insurance industries propelled performance for the six-month period ending April 30, 2010. Some of the positions from these industries experiencing the strongest share price appreciation included Tyco Electronics Group SA and MS&AD Insurance. Conversely, declines for holdings in the diversified telecommunication services industry had an unfavorable impact on performance. France Telecom S.A. and Telefonica S.A. were among the holdings from this industry that experienced stock price declines during the period. Among countries, securities based in Japan tended to have the most positive impact on performance. Top performers from Japan included Sony Corp. and Fuji Photo Film Co. Ltd. Gains registered by holdings based in Switzerland and Brazil also proved favorable to performance. Some of the key contributors from these countries included Swiss Reinsurance Company and Centrais Electricas Brasileiras SA. On the contrary, declines for a number of positions in France, including Credit Agricole S.A. and Alcatel-Lucent SA, weighed on results.
During the six-month period ending April 30, 2010, the fund outperformed its benchmark, the MSCI EAFE® Index. Among the positive contributors to relative performance was the fund’s overweight position (relative to the index) and stock selection in the electronic equipment, instrument & components industry. In addition, the fund benefitted from stock selection in the insurance industry and positions based in Japan and emerging markets. Conversely, the fund’s stock selection and allocation to France-based holdings detracted from performance relative to the index. The fund’s overweight position (relative to the index) in the diversified telecommunication services industry also proved unfavorable to relative performance. Country and industry exposures are the result of our individual security selection — not top-down industry forecasts. As of April 30, 2010, the most substantial weightings were in Japan and in the diversified telecommunication services industry.
ING IM Sleeve(2) — The fund underperformed its benchmark mainly due to weak security selection, with a minor detraction from sector allocation. Weak selection was most acute in three sectors: materials, consumer staples and healthcare. Partially offsetting these detractions were contributions from strong selection within the utilities and consumer discretionary sectors. In addition, the losses were mitigated by a modest overweight coupled with strong selection in the information technology sector. From a regional standpoint, stock selection in Japan and Europe detracted the most from performance. Contributions from the fund’s overweight to North America, mainly Canada, helped to mitigate the losses.
Laggard stocks for the period included Mitsui Chemicals, Inc. (“Mitsui Chemical”) and Lafarge SA (“Lafarge”). Mitsui Chemical saw shares slide on an unexpectedly strong yen, weak chemicals market and a need for a capital raise-up. Lafarge shares underperformed after announcing disappointing earnings in developed markets.
Bombardier, Inc. (“Bombardier”) and Volkswagen AG (“Volkswagen”) were among the top performing stocks in the portfolio. Bombardier outperformed amid strong new orders for its C series aircraft. Volkswagen shares were stronger on improving numbers, largely driven by its luxury division and strong demand from emerging markets.
Current Strategy and Outlook: Brandes Sleeve(2) — While we monitor short-term events in international equity markets, our investment philosophy focuses on company-by-company analysis. We take a long-term perspective and believe that none or very little of the short-term “market news” provides useful information to investors. ING IM Sleeve(2) — International markets have faced stiff headwinds owing to the overhang created by the sovereign debt crisis in Europe. Nevertheless, we believe that the problems largely will be contained and that appropriate measures will help to assuage investors’ fears. Against this backdrop, we will seek opportunities in regions that are not highly correlated to those concerns. With recent elections, government intervention in Europe and the potential slowing of the Chinese economy, we believe the remainder of the year may be marked by a heightened level of volatility.
| | |
| | * | Keith Colestock was removed from the Brandes Large Cap Investment Committee on January 31, 2010. |
| |
| (1) | The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
| |
| (2) | For purposes of these discussions, “the fund” refers to each Sub-Adviser’s respectively managed portion of ING International Value 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.
Top Ten Holdings
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Carrefour S.A. | | | 3.0 | % |
| GlaxoSmithKline PLC | | | 2.5 | % |
| Sanofi-Aventis | | | 2.2 | % |
| Tokio Marine Holdings, Inc. | | | 2.1 | % |
| Volkswagen AG | | | 1.6 | % |
| Royal Dutch Shell PLC – Class A | | | 1.6 | % |
| Telecom Italia S.p.A. RNC | | | 1.5 | % |
| Deutsche Telekom AG | | | 1.5 | % |
| HSBC Holdings PLC | | | 1.5 | % |
| Carrefour S.A. | | | 1.5 | % |
Portfolio holdings are subject to change daily.
17
ING International Value Choice Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Value Choice Fund (“International Value Choice” or the “Fund”) seeks long term capital appreciation. The Fund is managed by Peter Boardman and Alberto Jimenez Crespo, Portfolio Managers of Tradewinds Global Investors, LLC — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 7.71% compared to the MSCI Europe, Australasia, Far East® Index(1) (“MSCI EAFE® Index”), which returned 2.48% for the same period.
Portfolio Specifics: The Fund was up for the period ending April 30, 2010 and fared better than the MSCI EAFE® Index for the same period. In U.S. dollar terms, global equity markets continued to post positive results with North America and the emerging markets leading other markets. Concerns regarding sovereign debt levels of several European countries weighed on that region’s results, despite news of the International Monetary Fund’s supportive measures. The U.S. dollar rallied against most major currencies including the euro, yen and British pound during the period, which muted strong local currency returns. Sectors reported a range of results with technology and materials companies rallying overall while financials and utilities companies generally losing ground.
From a relative perspective, the Fund benefited from its under allocation to the financial sector, which as mentioned above was one of the poorer performing sectors, in addition to the Fund’s holdings outperforming those of the benchmark. MS&AD Insurance Group Holdings of Japan, formally known as Mitsui Sumitomo Insurance Holdings, LLC, prior to its merger with Aioi Insurance Co. Ltd. and Nissay Dowa General Insurance Co. Ltd., was the best performing holding of the sector, in addition to being a top contributor to the portfolio’s absolute results. The company had improved its fundamental outlook with the merger, and the stock price rallied from its lows.
Conversely, the Fund’s industrials holdings were a relative detractor. Though the Fund maintains a similar allocation to industrials as the benchmark, the Fund’s sector results trailed that of the benchmark. Thales S.A. (“Thales”) of France, a manufacturer of aerospace systems and industrial electronics products, was the Fund’s single largest detractor from performance during the period. The company’s shares declined notably in mid-February after the company reported fiscal year 2009 earnings results below many analyst expectations and issued a cautious outlook for 2010, perhaps partially attributed to the length of time needed to right-size its cost structure. Thales is a top defense electronics company with leading positions in most of its businesses and despite the share price weakness, we believe the company’s long-term fundamentals, as well as its intrinsic value, remain the same.
Another notable contributor to absolute performance was Magna International, Inc. of Canada, which was the Fund’s largest individual contributor to returns. The auto-parts maker and auto-assembler benefited from the then improving economic picture as well as from government incentive programs designed to aid the auto industry. Furthermore, the collapse of the deal to buy Opel, the German subsidiary of General Motors Corp., further gave investors assurance that the company would not overspend on an acquisition.
The Fund was also aided by currency returns from a relative perspective, as the Fund’s overweight in both South African rand and Canadian dollar and underweight in the British pound and the euro, which continued to weaken during the period, contributed to additional gains versus the benchmark.
Current Strategy and Outlook: While we end the period on a positive note, the questions for investors are many. Where are the next engines for growth? What type of fiscal measures will be needed for governments to gain control of their finances? In the U.S., what are the implications for corporate profits after the passage of sweeping healthcare legislation? Will the devaluation of currencies lead to higher inflation or will deflation take center stage? We believe that focusing on top down themes to construct investment portfolios can be a perilous exercise. For instance, risk avoidance was rewarded as much in 2008 as risk taking was in 2009. We believe that finding companies that trade at significant discounts to their intrinsic values is the key to delivering solid absolute and relative returns for investors. Understanding the dynamics of a business and focusing on those value opportunities that lay in franchise quality companies, in our view, will reward investors over time.
| |
| (1) | The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in markets in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Barrick Gold Corp. | | | 3.6 | % |
| Royal Dutch Shell PLC ADR – Class B | | | 3.1 | % |
| SK Telecom Co., Ltd. ADR | | | 2.9 | % |
Coca-Cola West Holdings Co., Ltd. | | | 2.9 | % |
| Dai Nippon Printing Co., Ltd. | | | 2.7 | % |
| Anglogold Ashanti Ltd. ADR | | | 2.7 | % |
| Seven & I Holdings Co., Ltd. | | | 2.6 | % |
| Nippon Telegraph & Telephone Corp. ADR | | | 2.5 | % |
| Kinross Gold Corp. | | | 2.4 | % |
| Sanofi-Aventis | | | 2.4 | % |
| | | |
| | * | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. | |
Portfolio holdings are subject to change daily.
18
ING Russia Fund
Portfolio Managers’ Report
Industry Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Russia Fund (“Russia” or the “Fund”) seeks long-term capital appreciation through investment primarily in equity securities of Russian companies. The Fund is managed by Angus Robertson and Jan-Wim Derks, Portfolio Managers, of ING Investment Management Advisors, B.V. — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 21.13% compared to the Russian Trading System (“RTS”) Index(1) and the MSCI Russia 10/40 Index(2), which returned 16.91% and 19.84%, respectively, for the same period.
Portfolio Specifics: The last reporting period saw continuation of the global economic recovery. Growth estimates increased, money found its way back into asset markets and investors were rewarded. Along with an improved global growth scenario came higher commodity prices: crude oil rose from the mid $60s per barrel to the upper $80s, which was favorable for commodity producers such as Russia. Russia’s riskiness worked in its favor at a time of increased risk appetite — Russian equities returned around 16% in U.S. dollar terms against the global emerging markets’ aggregate return of about 12% and global developed markets return of around 9% as measured by the MSCI World IndexSM and MSCI Europe, Australasia and Far East® Index, respectively, in U.S.-dollar terms.
The Fund benefited from the recovery by holding a combination of large-cap, less-risky stocks, that were driven up by better earnings; better global liquidity; and smaller, riskier companies that simply had too much risk priced in. In particular, the Fund benefited from the reforms in Russia’s electricity sector while its relative underinvestment in the low growth and heavily taxed oil and gas sector helped relative performance.
The Fund’s best relative performance contributors at the stock level were overweight positions in electricity companies Territorial Generating Co. 1 and Holding MRSK OAO, regional telecoms operator VolgaTelecom, mining companies Raspadskaya (coal) and Vsmpo-Avisma Corp. (titanium) and regional Bank of St. Petersburg. The Fund also benefitted from its largest underweight position, in gas behemoth OAO Gazprom, which lagged the market significantly. Performance detractors over the period included the underweight positions in steel companies Severstal and NLMK, electricity generator RusHydro and VTB Bank OJSC.
Current Outlook and Strategy: After such a strong market performance and rebound in earnings expectations, we believe Russian valuation levels are no longer as attractive as they were immediately after the crisis. Nevertheless, we believe they remain attractive compared to their global emerging market peers. In a continued environment of strong global liquidity and high appetite for risk, we believe the Russian market is likely to continue to outperform other emerging and developed markets. We are, however, acutely aware that any swing in the external environment is likely to put pressure on Russian equities and are thus monitoring closely the news flow on the global economic environment, inflation expectations and interest rates. Aside from the global or external angle, we believe the Fund is positioned to benefit from a number of domestic themes including infrastructure spending, domestic consumption recovery, liberalization of markets and increasing economic links with China. On a sector basis, the Fund continues to underweight the energy sector (dominated by large-cap, blue chip stocks) in favor of domestic sectors, particularly utilities, real estate and the consumer sectors, while its positioning in Russian banks is currently neutral.
| |
| (1) | The RTS Index is a capitalization-weighted index that is calculated in U.S. dollars. The index tracks the performance of Russia’s most active stocks traded on the RTS. The index is operated by the National Association of Participants in the Securities Markets, a non-profit body. |
| (2) | The MSCI Russia 10/40 Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the Russian market taking into account the Undertakings for Collective Investment in Transferable Securities (UCITS III) directive which constrains the weight of any single group entity, as defined therein, at 10% of a fund’s total assets and the sum of the weights of all group entities representing more than 5% of the fund at 40% of the fund’s total assets. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| Sberbank of Russian Federation | | | 10.0 | % |
| Lukoil-Spon ADR | | | 7.8 | % |
| MMC Norilsk Nickel ADR | | | 6.4 | % |
| Novatek OAO GDR | | | 5.2 | % |
| Federal Grid Co Unified Energy System JSC | | | 5.0 | % |
| Mechel OAO ADR | | | 4.7 | % |
| OAO Gazprom | | | 4.3 | % |
| Mobile Telesystems Finance SA ADR | | | 4.3 | % |
| OAO Rosneft Oil Co. GDR | | | 4.1 | % |
| Tatneft GDR | | | 3.3 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
19
ING Global Bond Fund
Portfolio Managers’ Report
Investment Type Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Bond Fund (“Global Bond” or the ”Fund”) seeks to maximize total return through a combination of current income and capital appreciation. The Fund is managed by Chris Diaz and Mike Mata, Portfolio Managers, of ING Investment Management Co. — the Sub-Adviser.
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 0.75% compared to the Barclays Capital Global Aggregate Index(1) (the ”Index”), which returned (1.56)% for the same period.
Portfolio Specifics: The global economy is in the process of recovering from one of the deepest recessions in decades. During much of the reporting period, the economy witnessed improved economic activity in the United States and abroad. Central banks kept interest rates low during the period, while fears of potential inflation caused questions as to when and by how much interest rates might rise in coming months.
There were new fears about sovereign risk centered on the crises in Dubai and Greece — with implications for nations such as the U.S., U.K., Ukraine, Spain and Portugal, which have massive borrowing needs, high outstanding debt or both. The euro was hit extremely hard and there was more uncertainty as the European Central Bank (“ECB”) unveiled a plan to bail out struggling euro zone countries with massive deficits. The BRICs (Brazil, Russia, India and China) saw significant growth, but toward the end of the period, began to take measures to slow their growth rates, spurring fears of inflation in those countries.
The Fund outperformed its benchmark for the period, mainly due to strong sector allocation, which greatly added to the excess returns(2). Despite the issues with Greece and other eurozone countries, risk-based assets rallied versus sovereign debt during the first half of the period. The portfolio benefited from overweights to corporates, non-agency residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). Our focus was on high-quality CMBS. Within corporate bonds, an overweight to financials and lower rated bonds, including high yield, proved beneficial. The strong excess returns of the sectors boosted relative returns from an asset allocation perspective.
The Fund also benefited from exposure to currencies such as the Brazilian real and Mexican peso early in the period. After the emerging markets rallied, we lowered the Fund’s emerging market debt (“EMD”) allocation to reduce risk. Certain off-benchmark positions such as the Indian rupee and the Indonesian rupiah helped performance.
Duration positioning detracted from results over the period, during a time of some interest rate volatility. However, until there is more clarity on how the Federal Reserve Board (the “Fed”) will handle rates, duration has been short and has not been a major contributor to performance.
Current Strategy and Outlook: We look for economic recovery to take hold gradually in 2010. Business investment and inventory rebuilding is helping provide some recent lift to economic growth. In our opinion, gradual recovery in consumer spending and a recovery in household net worth will be important drivers for further economic gains.
We expect modest pressure on U.S. Treasury rates due to the higher debt issuance needs of the U.S. government and the market’s expectation of eventually higher interest rate targeting by the Fed, although we see Fed tightening more likely taking place late 2010 or early 2011. We believe certain central banks in Asia and Scandinavia are likely to continue monetary tightening. The debt woes of the U.K., Greece and other southern European countries place considerable headwinds on economic recovery across Europe, and pose downside risks to global economic recovery.
As credit markets have continued to rally back from the crisis, we continue to see value in a number of sectors such as investment grade corporate bonds, high quality commercial mortgage-backed securities, asset-backed securities and non-agency mortgage securities. We particularly favor large financial institutions given their structural importance to the economy and high diversified sources of revenue generation.
We continue to underweight agency mortgage bonds as spreads have tightened dramatically and the Fed completed its $1.25 trillion mortgage-buying program at the end of March.
In non-investment grade sectors, our EMD model target remains at zero based on current EMD sovereign yields and spreads being near all time lows. Nevertheless, we still favor some investment grade EMD issuers such as Mexico and Brazil. We maintain a 10% overweight target to the high yield sector, where fundamentals remain positive and spreads are still attractive versus other sectors.
| |
| (1) | The Barclays Capital Global Aggregate Index provides a broad-based measure of the global investment-grade fixed-rate debt markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. |
| (2) | For fixed income asset classes, excess return is defined as the return of an asset class over a U.S. Treasury security of comparable duration. |
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.
Top Ten Holdings*
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| | | | | |
| Brazil Notas do Tesouro Nacional Series F, 10.000%, due 01/01/12 | | | 10.3 | % |
| | | | | |
| Federal National Mortgage Association, 4.500%, due 06/01/37 | | | 2.6 | % |
| | | | | |
| U.S. Treasury Note, 4.375%, due 11/15/39 | | | 2.6 | % |
| | | | | |
| Japan Government Two Year Bond, 0.400%, due 03/15/11 | | | 2.0 | % |
| | | | | |
| Federal Home Loan Mortgage Corporation, 3.000%, due 04/07/15 | | | 1.8 | % |
| | | | | |
| Federal Home Loan Mortgage Corporation, 4.340%, due 12/18/17 | | | 1.8 | % |
| | | | | |
| Federal Home Loan Mortgage Corporation, 3.125%, due 03/16/15 | | | 1.8 | % |
| | | | | |
| Bundesrepublik Deutschland, 3.750%, due 01/04/19 | | | 1.6 | % |
| | | | | |
| Bundesrepublik Deutschland, 4.250%, due 07/04/39 | | | 1.5 | % |
| | | | | |
| Japan Government Ten Year Bond, 1.400%, due 12/20/11 | | | 1.2 | % |
| | | |
| | * | Excludes short-term investments related to commercial paper and ING Institutional Prime Money Market Fund – Class I. | |
Portfolio holdings are subject to change daily.
20
ING Diversified International Fund
Portfolio Managers’ Report
Asset Allocation
as of April 30, 2010
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Diversified International Fund (“Diversified International” or the “Fund”) seeks long term growth of capital. The Fund invests in a combination of other ING Funds (“Underlying Funds”) according to target allocations determined by ING Investments, LLC. The Fund is managed by ING Investments, LLC, under the guidance of an Asset Allocation Committee.(1)
Performance: For the six month period ended April 30, 2010, the Fund’s Class A shares, excluding sales charges, provided a total return of 6.64% compared to the MSCI All Country World IndexSM (ex-US)(2) (“MSCI ACWI (ex-US)”) which returned 5.76% for the same period.
Portfolio Specifics: The Fund’s outperformance relative to its benchmark was due to the performance of the Underlying Funds and allocations to non-benchmark holdings. Five of the eight underlying funds contributed to outperformance: ING International Value Choice Fund (“International Value Choice”), ING International SmallCap Multi-Manager Fund (“International SmallCap Multi-Manager”), ING Index Plus International Equity Fund (“Index Plus International Equity”), ING International Capital Appreciation Fund (“International Capital Appreciation”) and marginally from ING Emerging Countries Fund (“Emerging Countries”). Three Underlying Funds detracted from results: ING International Real Estate Fund (“International Real Estate”), ING International Value Fund (“International Value”) and ING Foreign Fund (“Foreign”) underperformed their individual primary prospectus benchmarks.
The greatest contributors for the period were International Value Choice and International Small Cap Multi-Manager. International Value Choice Fund’s relative performance benefited from an under allocation to the lagging financials sector, together with good stock selection in that sector. In addition, the Fund’s overweight in the South African rand and Canadian dollar and underweight the weakening euro and British pound contributed currency gains versus the benchmark. Adverse stock selection in the industrials sector was a partial offset. International Small-Cap Multi-Manager Fund’s outperformance was mostly attributable to the Acadian sleeve, in which the highest active return was seen regionally in Netherlands, Germany and Japan and by sector in banking, technology and durables. The Schroder sleeve made a positive contribution to relative performance due mainly to an overweighting and favorable stock selection in the Pacific ex-Japan region. The Batterymarch sleeve existed for almost half of the period, during which it performed in line with its benchmark.
The greatest detractors from relative performance were International Real Estate and Foreign. International Real Estate Fund underperformed mainly because of stock selection and country selection decisions within the Asia-Pacific region, especially Hong Kong and to a lesser degree Singapore, where fund holdings with exposure to mainland China residential development performed poorly. An underweight in Singapore also detracted. In Foreign Fund, stock selection in (especially Asian) emerging markets detracted, as did the Fund’s underweight to and stock selection in Japan.
We made a tactical move during the period, shifting the Fund to an overweight position in emerging markets and an underweight in large-cap core; these positions benefited performance.
Current Strategy and Outlook: The period began with positive returns in the equity markets in November and December. This was followed by poor returns in the beginning of the year, but global markets stabilized and rose strongly through the end of March. Emerging markets outperformed international developed markets, due to the impact of the Greek sovereign debt crisis, which dragged down performance of the European markets.
The global economy continues to experience gradual growth, led by emerging economies. Developed markets are seeing slower productivity growth, so we would expect these markets to perform more weakly than their emerging counterparts.
The Fund’s approximate target investment allocations among the asset classes in which the Fund invests are set out in the table. As these are target allocations, the actual allocations of the Fund’s assets may deviate from the percentages shown.
The investment committee allocates the Fund’s assets among the Underlying Funds based on advice from ING Investment Management Co., a consultant to the committee. The performance of the Fund reflects the performance of the Underlying Funds in which it invests and the weightings of Fund’s assets in each Underlying Fund.
There is a risk that the Fund may allocate assets to an Underlying Fund or market that underperforms other asset classes. For example, the Fund may be underweighted in assets or a market that is experiencing significant returns or over-weighted in assets or a market with significant declines.
| |
| (1) | The members of the Asset Allocation Committee are: William A. Evans, Paul Zemsky and Heather Hackett. |
| |
| (2) | The MSCI ACWI (ex-US)sm measures the returns of equities of companies which are domiciled outside the U.S. It includes the reinvestment of dividends and distributions net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
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.
Target Allocations
as of April 30, 2010
(as a percent of net assets)
| | | | | |
| International Core | | | 25.0 | % |
| International Growth | | | 17.5 | % |
| International Value | | | 17.5 | % |
| International Small Cap | | | 10.0 | % |
| Emerging Markets | | | 25.0 | % |
| Real Estate | | | 5.0 | % |
Portfolio holdings are subject to change daily.
21
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 November 1, 2009 to April 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 the 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
| | | | Expenses Paid
| | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | | | During the
| | Account
| | Account
| | | | During the
|
| | | Value
| | Value
| | Annualized
| | Period Ended
| | Value
| | Value
| | Annualized
| | Period Ended
|
| | | November 1,
| | April 30,
| | Expense
| | April 30,
| | November 1,
| | April 30,
| | Expense
| | April 30,
|
| | | 2009 | | 2010 | | Ratio | | 2010* | | 2009 | | 2010 | | Ratio | | 2010* |
| |
| ING Global Equity Dividend Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,086.30 | | | | 1.40 | % | | $ | 7.24 | | | $ | 1,000.00 | | | $ | 1,017.85 | | | | 1.40 | % | | $ | 7.00 | |
| Class B | | | 1,000.00 | | | | 1,083.50 | | | | 2.15 | | | | 11.11 | | | | 1,000.00 | | | | 1,014.13 | | | | 2.15 | | | | 10.74 | |
| Class��C | | | 1,000.00 | | | | 1,082.70 | | | | 2.15 | | | | 11.10 | | | | 1,000.00 | | | | 1,014.13 | | | | 2.15 | | | | 10.74 | |
| Class I | | | 1,000.00 | | | | 1,088.60 | | | | 1.02 | | | | 5.28 | | | | 1,000.00 | | | | 1,019.74 | | | | 1.02 | | | | 5.11 | |
| Class O | | | 1,000.00 | | | | 1,086.80 | | | | 1.40 | | | | 7.24 | | | | 1,000.00 | | | | 1,017.85 | | | | 1.40 | | | | 7.00 | |
| Class W | | | 1,000.00 | | | | 1,088.50 | | | | 1.15 | | | | 5.96 | | | | 1,000.00 | | | | 1,019.09 | | | | 1.15 | | | | 5.76 | |
| ING Global Natural Resources Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,124.70 | | | | 1.53 | | | | 8.06 | | | | 1,000.00 | | | | 1,017.21 | | | | 1.53 | | | | 7.65 | |
| Class I | | | 1,000.00 | | | | 1,126.50 | | | | 1.12 | | | | 5.91 | | | | 1,000.00 | | | | 1,019.24 | | | | 1.12 | | | | 5.61 | |
| Class W | | | 1,000.00 | | | | 1,125.60 | | | | 1.28 | | | | 6.75 | | | | 1,000.00 | | | | 1,018.45 | | | | 1.28 | | | | 6.41 | |
22
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Fund Return | | Hypothetical (5% return before expenses) |
| | | Beginning
| | Ending
| | | | Expenses Paid
| | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | | | During the
| | Account
| | Account
| | | | During the
|
| | | Value
| | Value
| | Annualized
| | Period Ended
| | Value
| | Value
| | Annualized
| | Period Ended
|
| | | November 1,
| | April 30,
| | Expense
| | April 30,
| | November 1,
| | April 30,
| | Expense
| | April 30,
|
| | | 2009 | | 2010 | | Ratio | | 2010* | | 2009 | | 2010 | | Ratio | | 2010* |
| |
| ING Global Real Estate Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,114.70 | | | | 1.39 | % | | $ | 7.29 | | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.39 | % | | $ | 6.95 | |
| Class B | | | 1,000.00 | | | | 1,110.80 | | | | 2.14 | | | | 11.20 | | | | 1,000.00 | | | | 1,014.18 | | | | 2.14 | | | | 10.69 | |
| Class C | | | 1,000.00 | | | | 1,111.30 | | | | 2.14 | | | | 11.20 | | | | 1,000.00 | | | | 1,014.18 | | | | 2.14 | | | | 10.69 | |
| Class I | | | 1,000.00 | | | | 1,116.60 | | | | 0.99 | | | | 5.20 | | | | 1,000.00 | | | | 1,019.89 | | | | 0.99 | | | | 4.96 | |
| Class O | | | 1,000.00 | | | | 1,114.70 | | | | 1.39 | | | | 7.29 | | | | 1,000.00 | | | | 1,017.90 | | | | 1.39 | | | | 6.95 | |
| Class W | | | 1,000.00 | | | | 1,116.50 | | | | 1.14 | | | | 5.98 | | | | 1,000.00 | | | | 1,019.14 | | | | 1.14 | | | | 5.71 | |
| ING Global Value Choice Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,137.00 | | | | 1.50 | | | | 7.95 | | | | 1,000.00 | | | | 1,017.36 | | | | 1.50 | | | | 7.50 | |
| Class B | | | 1,000.00 | | | | 1,133.00 | | | | 2.25 | | | | 11.90 | | | | 1,000.00 | | | | 1,013.64 | | | | 2.25 | | | | 11.23 | |
| Class C | | | 1,000.00 | | | | 1,132.60 | | | | 2.25 | | | | 11.90 | | | | 1,000.00 | | | | 1,013.64 | | | | 2.25 | | | | 11.23 | |
| Class I | | | 1,000.00 | | | | 1,139.50 | | | | 1.10 | | | | 5.84 | | | | 1,000.00 | | | | 1,019.34 | | | | 1.10 | | | | 5.51 | |
Class W(1) | | | 1,000.00 | | | | 1,138.10 | | | | 1.25 | | | | 6.63 | | | | 1,000.00 | | | | 1,018.60 | | | | 1.25 | | | | 6.26 | |
| ING Asia-Pacific Real Estate Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,044.70 | | | | 1.76 | | | | 8.92 | | | | 1,000.00 | | | | 1,016.07 | | | | 1.76 | | | | 8.80 | |
| Class B | | | 1,000.00 | | | | 1,040.90 | | | | 2.51 | | | | 12.70 | | | | 1,000.00 | | | | 1,012.35 | | | | 2.51 | | | | 12.52 | |
| Class C | | | 1,000.00 | | | | 1,039.60 | | | | 2.51 | | | | 12.69 | | | | 1,000.00 | | | | 1,012.35 | | | | 2.51 | | | | 12.52 | |
| Class I | | | 1,000.00 | | | | 1,046.60 | | | | 1.43 | | | | 7.26 | | | | 1,000.00 | | | | 1,017.70 | | | | 1.43 | | | | 7.15 | |
| ING Emerging Countries Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,122.30 | | | | 1.91 | | | | 10.05 | | | | 1,000.00 | | | | 1,015.32 | | | | 1.91 | | | | 9.54 | |
| Class B | | | 1,000.00 | | | | 1,118.10 | | | | 2.66 | | | | 13.97 | | | | 1,000.00 | | | | 1,011.60 | | | | 2.66 | | | | 13.27 | |
| Class C | | | 1,000.00 | | | | 1,118.10 | | | | 2.66 | | | | 13.97 | | | | 1,000.00 | | | | 1,011.60 | | | | 2.66 | | | | 13.27 | |
| Class I | | | 1,000.00 | | | | 1,124.70 | | | | 1.49 | | | | 7.85 | | | | 1,000.00 | | | | 1,017.41 | | | | 1.49 | | | | 7.45 | |
Class W(2) | | | 1,000.00 | | | | 1,123.90 | | | | 1.66 | | | | 8.74 | | | | 1,000.00 | | | | 1,016.56 | | | | 1.66 | | | | 8.30 | |
| ING European Real Estate Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 952.20 | | | | 1.78 | | | | 8.62 | | | | 1,000.00 | | | | 1,015.97 | | | | 1.78 | | | | 8.90 | |
| Class B | | | 1,000.00 | | | | 949.80 | | | | 2.53 | | | | 12.23 | | | | 1,000.00 | | | | 1,012.25 | | | | 2.53 | | | | 12.62 | |
| Class C | | | 1,000.00 | | | | 949.40 | | | | 2.53 | | | | 12.23 | | | | 1,000.00 | | | | 1,012.25 | | | | 2.53 | | | | 12.62 | |
| Class I | | | 1,000.00 | | | | 954.40 | | | | 1.37 | | | | 6.64 | | | | 1,000.00 | | | | 1,018.00 | | | | 1.37 | | | | 6.85 | |
| ING Foreign Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,045.10 | | | | 1.68 | | | | 8.52 | | | | 1,000.00 | | | | 1,016.46 | | | | 1.68 | | | | 8.40 | |
| Class B | | | 1,000.00 | | | | 1,041.30 | | | | 2.43 | | | | 12.30 | | | | 1,000.00 | | | | 1,012.74 | | | | 2.43 | | | | 12.13 | |
| Class C | | | 1,000.00 | | | | 1,041.30 | | | | 2.43 | | | | 12.30 | | | | 1,000.00 | | | | 1,012.74 | | | | 2.43 | | | | 12.13 | |
| Class I | | | 1,000.00 | | | | 1,047.40 | | | | 1.33 | | | | 6.75 | | | | 1,000.00 | | | | 1,018.20 | | | | 1.33 | | | | 6.66 | |
Class W(1) | | | 1,000.00 | | | | 1,047.20 | | | | 1.43 | | | | 7.26 | | | | 1,000.00 | | | | 1,017.70 | | | | 1.43 | | | | 7.15 | |
| ING Greater China Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,026.40 | | | | 2.07 | | | | 10.40 | | | | 1,000.00 | | | | 1,014.53 | | | | 2.07 | | | | 10.34 | |
| Class B | | | 1,000.00 | | | | 1,023.20 | | | | 2.82 | | | | 14.15 | | | | 1,000.00 | | | | 1,010.81 | | | | 2.82 | | | | 14.06 | |
| Class C | | | 1,000.00 | | | | 1,022.80 | | | | 2.82 | | | | 14.14 | | | | 1,000.00 | | | | 1,010.81 | | | | 2.82 | | | | 14.06 | |
| Class I | | | 1,000.00 | | | | 1,028.80 | | | | 1.71 | | | | 8.60 | | | | 1,000.00 | | | | 1,016.31 | | | | 1.71 | | | | 8.55 | |
| Class O | | | 1,000.00 | | | | 1,026.70 | | | | 2.07 | | | | 10.40 | | | | 1,000.00 | | | | 1,014.53 | | | | 2.07 | | | | 10.34 | |
23
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Fund Return | | Hypothetical (5% return before expenses) |
| | | Beginning
| | Ending
| | | | Expenses Paid
| | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | | | During the
| | Account
| | Account
| | | | During the
|
| | | Value
| | Value
| | Annualized
| | Period Ended
| | Value
| | Value
| | Annualized
| | Period Ended
|
| | | November 1,
| | April 30,
| | Expense
| | April 30,
| | November 1,
| | April 30,
| | Expense
| | April 30,
|
| | | 2009 | | 2010 | | Ratio | | 2010* | | 2009 | | 2010 | | Ratio | | 2010* |
| |
| ING Index Plus International Equity Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,031.60 | | | | 1.16 | % | | $ | 5.84 | | | $ | 1,000.00 | | | $ | 1,019.04 | | | | 1.16 | % | | $ | 5.81 | |
| Class B | | | 1,000.00 | | | | 1,028.60 | | | | 1.91 | | | | 9.61 | | | | 1,000.00 | | | | 1,015.32 | | | | 1.91 | | | | 9.54 | |
| Class C | | | 1,000.00 | | | | 1,028.60 | | | | 1.91 | | | | 9.61 | | | | 1,000.00 | | | | 1,015.32 | | | | 1.91 | | | | 9.54 | |
| Class I | | | 1,000.00 | | | | 1,033.20 | | | | 0.91 | | | | 4.59 | | | | 1,000.00 | | | | 1,020.28 | | | | 0.91 | | | | 4.56 | |
| Class O | | | 1,000.00 | | | | 1,031.90 | | | | 1.16 | | | | 5.84 | | | | 1,000.00 | | | | 1,019.04 | | | | 1.16 | | | | 5.81 | |
| ING International Capital Appreciation Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,065.30 | | | | 1.46 | | | | 7.48 | | | | 1,000.00 | | | | 1,017.55 | | | | 1.46 | | | | 7.30 | |
| Class B | | | 1,000.00 | | | | 1,061.50 | | | | 2.21 | | | | 11.30 | | | | 1,000.00 | | | | 1,013.84 | | | | 2.21 | | | | 11.03 | |
| Class C | | | 1,000.00 | | | | 1,061.20 | | | | 2.21 | | | | 11.29 | | | | 1,000.00 | | | | 1,013.84 | | | | 2.21 | | | | 11.03 | |
| Class I | | | 1,000.00 | | | | 1,067.80 | | | | 1.00 | | | | 5.13 | | | | 1,000.00 | | | | 1,019.84 | | | | 1.00 | | | | 5.01 | |
Class W(2) | | | 1,000.00 | | | | 1,066.40 | | | | 1.27 | | | | 6.51 | | | | 1,000.00 | | | | 1,018.50 | | | | 1.27 | | | | 6.36 | |
| ING International Real Estate Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,009.00 | | | | 1.50 | | | | 7.47 | | | | 1,000.00 | | | | 1,017.36 | | | | 1.50 | | | | 7.50 | |
| Class B | | | 1,000.00 | | | | 1,004.90 | | | | 2.25 | | | | 11.18 | | | | 1,000.00 | | | | 1,013.64 | | | | 2.25 | | | | 11.23 | |
| Class C | | | 1,000.00 | | | | 1,005.10 | | | | 2.25 | | | | 11.19 | | | | 1,000.00 | | | | 1,013.64 | | | | 2.25 | | | | 11.23 | |
| Class I | | | 1,000.00 | | | | 1,010.40 | | | | 1.17 | | | | 5.83 | | | | 1,000.00 | | | | 1,018.99 | | | | 1.17 | | | | 5.86 | |
| Class W | | | 1,000.00 | | | | 1,010.10 | | | | 1.25 | | | | 6.23 | | | | 1,000.00 | | | | 1,018.60 | | | | 1.25 | | | | 6.26 | |
| ING International SmallCap Multi-Manager Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,113.40 | | | | 1.84 | | | | 9.64 | | | | 1,000.00 | | | | 1,015.67 | | | | 1.84 | | | | 9.20 | |
| Class B | | | 1,000.00 | | | | 1,109.90 | | | | 2.49 | | | | 13.03 | | | | 1,000.00 | | | | 1,012.45 | | | | 2.49 | | | | 12.42 | |
| Class C | | | 1,000.00 | | | | 1,109.90 | | | | 2.49 | | | | 13.03 | | | | 1,000.00 | | | | 1,012.45 | | | | 2.49 | | | | 12.42 | |
| Class I | | | 1,000.00 | | | | 1,116.30 | | | | 1.31 | | | | 6.87 | | | | 1,000.00 | | | | 1,018.30 | | | | 1.31 | | | | 6.56 | |
| Class O | | | 1,000.00 | | | | 1,114.00 | | | | 1.74 | | | | 9.12 | | | | 1,000.00 | | | | 1,016.17 | | | | 1.74 | | | | 8.70 | |
Class W(1) | | | 1,000.00 | | | | 1,115.50 | | | | 1.49 | | | | 7.82 | | | | 1,000.00 | | | | 1,017.41 | | | | 1.49 | | | | 7.45 | |
| ING International Value Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,021.90 | | | | 1.64 | | | | 8.22 | | | | 1,000.00 | | | | 1,016.66 | | | | 1.64 | | | | 8.20 | |
| Class B | | | 1,000.00 | | | | 1,018.20 | | | | 2.34 | | | | 11.71 | | | | 1,000.00 | | | | 1,013.19 | | | | 2.34 | | | | 11.68 | |
| Class C | | | 1,000.00 | | | | 1,019.40 | | | | 2.28 | | | | 11.42 | | | | 1,000.00 | | | | 1,013.49 | | | | 2.28 | | | | 11.38 | |
| Class I | | | 1,000.00 | | | | 1,023.60 | | | | 1.29 | | | | 6.47 | | | | 1,000.00 | | | | 1,018.40 | | | | 1.29 | | | | 6.46 | |
Class W(1) | | | 1,000.00 | | | | 1,023.40 | | | | 1.34 | | | | 6.72 | | | | 1,000.00 | | | | 1,018.15 | | | | 1.34 | | | | 6.71 | |
| ING International Value Choice Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,077.10 | | | | 1.70 | | | | 8.76 | | | | 1,000.00 | | | | 1,016.36 | | | | 1.70 | | | | 8.50 | |
| Class B | | | 1,000.00 | | | | 1,073.40 | | | | 2.45 | | | | 12.60 | | | | 1,000.00 | | | | 1,012.65 | | | | 2.45 | | | | 12.23 | |
| Class C | | | 1,000.00 | | | | 1,074.20 | | | | 2.45 | | | | 12.60 | | | | 1,000.00 | | | | 1,012.65 | | | | 2.45 | | | | 12.23 | |
| Class I | | | 1,000.00 | | | | 1,079.00 | | | | 1.34 | | | | 6.91 | | | | 1,000.00 | | | | 1,018.15 | | | | 1.34 | | | | 6.71 | |
| Class W | | | 1,000.00 | | | | 1,079.10 | | | | 1.45 | | | | 7.47 | | | | 1,000.00 | | | | 1,017.60 | | | | 1.45 | | | | 7.25 | |
| ING Russia Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,211.30 | | | | 2.07 | | | | 11.35 | | | | 1,000.00 | | | | 1,014.53 | | | | 2.07 | | | | 10.34 | |
| Class I | | | 1,000.00 | | | | 1,212.60 | | | | 1.67 | | | | 9.16 | | | | 1,000.00 | | | | 1,016.51 | | | | 1.67 | | | | 8.35 | |
| ING Global Bond Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | 1,000.00 | | | | 1,007.50 | | | | 0.90 | | | | 4.48 | | | | 1,000.00 | | | | 1,020.33 | | | | 0.90 | | | | 4.51 | |
| Class B | | | 1,000.00 | | | | 1,002.90 | | | | 1.65 | | | | 8.19 | | | | 1,000.00 | | | | 1,016.61 | | | | 1.65 | | | | 8.25 | |
| Class C | | | 1,000.00 | | | | 1,003.10 | | | | 1.65 | | | | 8.19 | | | | 1,000.00 | | | | 1,016.61 | | | | 1.65 | | | | 8.25 | |
| Class I | | | 1,000.00 | | | | 1,009.10 | | | | 0.58 | | | | 2.89 | | | | 1,000.00 | | | | 1,021.92 | | | | 0.58 | | | | 2.91 | |
| Class O | | | 1,000.00 | | | | 1,008.40 | | | | 0.90 | | | | 4.48 | | | | 1,000.00 | | | | 1,020.33 | | | | 0.90 | | | | 4.51 | |
| Class W | | | 1,000.00 | | | | 1,008.90 | | | | 0.65 | | | | 3.24 | | | | 1,000.00 | | | | 1,021.57 | | | | 0.65 | | | | 3.26 | |
24
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual Fund Return | | Hypothetical (5% return before expenses) |
| | | Beginning
| | Ending
| | | | Expenses Paid
| | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | | | During the
| | Account
| | Account
| | | | During the
|
| | | Value
| | Value
| | Annualized
| | Period Ended
| | Value
| | Value
| | Annualized
| | Period Ended
|
| | | November 1,
| | April 30,
| | Expense
| | April 30,
| | November 1,
| | April 30,
| | Expense
| | April 30,
|
| | | 2009 | | 2010 | | Ratio | | 2010* | | 2009 | | 2010 | | Ratio | | 2010* |
| |
| ING Diversified International Fund** |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,066.40 | | | | 0.37 | % | | $ | 1.90 | | | $ | 1,000.00 | | | $ | 1,022.96 | | | | 0.37 | % | | $ | 1.86 | |
| Class B | | | 1,000.00 | | | | 1,062.10 | | | | 1.12 | | | | 5.73 | | | | 1,000.00 | | | | 1,019.24 | | | | 1.12 | | | | 5.61 | |
| Class C | | | 1,000.00 | | | | 1,061.70 | | | | 1.12 | | | | 5.73 | | | | 1,000.00 | | | | 1,019.24 | | | | 1.12 | | | | 5.61 | |
| Class I | | | 1,000.00 | | | | 1,067.70 | | | | 0.10 | | | | 0.51 | | | | 1,000.00 | | | | 1,024.30 | | | | 0.10 | | | | 0.50 | |
| Class O | | | 1,000.00 | | | | 1,067.00 | | | | 0.26 | | | | 1.33 | | | | 1,000.00 | | | | 1,023.51 | | | | 0.26 | | | | 1.30 | |
| Class R | | | 1,000.00 | | | | 1,065.20 | | | | 0.62 | | | | 3.17 | | | | 1,000.00 | | | | 1,021.72 | | | | 0.62 | | | | 3.11 | |
| Class W | | | 1,000.00 | | | | 1,068.30 | | | | 0.00 | | | | — | | | | 1,000.00 | | | | 1,024.79 | | | | 0.00 | | | | — | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 to reflect the most recent fiscal half-year. |
| |
| ** | The annualized expense ratios do not include expenses of underlying funds. |
| (1) | Effective November 20, 2009, Class Q shareholders of ING Global Value Choice Fund, ING Foreign Fund, ING International SmallCap Multi-Manager Fund and ING International Value Fund were converted to Class W shares of each respective Fund. |
| (2) | Effective March 8, 2010, Class Q shareholders of ING Emerging Countries Fund and ING International Capital Appreciation Fund were converted to Class W shares of each respective Fund. |
25
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Global
| | Global
| | Global
| | Global
|
| | | Equity Dividend
| | Natural Resources
| | Real Estate
| | Value Choice
|
| | | Fund | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 135,293,769 | | | $ | 108,015,681 | | | $ | 2,196,203,236 | | | $ | 285,865,211 | |
| Investments in affiliates** | | | — | | | | — | | | | 20,194,218 | | | | — | |
| Short-term investments at value*** | | | 1,392,620 | | | | — | | | | 34,830,005 | | | | 15,952,924 | |
| Short-term investments in affiliates**** | | | — | | | | 1,276,000 | | | | 73,754,366 | | | | 23,908,734 | |
| Cash | | | 5,058,184 | | | | 497 | | | | — | | | | — | |
| Foreign currencies at value***** | | | 755,803 | | | | — | | | | 553,061 | | | | — | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 977,606 | | | | 3,460,237 | | | | 41,084,872 | | | | 4,086,422 | |
| Fund shares sold | | | 509,275 | | | | 230,402 | | | | 15,544,600 | | | | 3,735,274 | |
| Dividends and interest | | | 619,727 | | | | 17,347 | | | | 8,619,703 | | | | 1,069,439 | |
| Prepaid expenses | | | 36,217 | | | | 23,733 | | | | 114,371 | | | | 47,369 | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 144,643,201 | | | | 113,023,897 | | | | 2,390,898,432 | | | | 334,665,373 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 2,351 | | | | 2,189,707 | | | | 44,355,311 | | | | 3,731,975 | |
| Payable for fund shares redeemed | | | 184,318 | | | | 144,464 | | | | 5,993,970 | | | | 1,377,114 | |
| Payable upon receipt of securities loaned | | | 1,417,400 | | | | — | | | | 35,379,069 | | | | 16,010,478 | |
| Payable to affiliates | | | 162,266 | | | | 109,442 | | | | 1,876,155 | | | | 558,003 | |
| Payable for directors fees | | | 6,426 | | | | 10,506 | | | | 13,781 | | | | 9,183 | |
| Other accrued expenses and liabilities | | | 191,582 | | | | 98,335 | | | | 1,219,536 | | | | 110,430 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 1,964,343 | | | | 2,552,454 | | | | 88,837,822 | | | | 21,797,183 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 142,678,858 | | | $ | 110,471,443 | | | $ | 2,302,060,610 | | | $ | 312,868,190 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 231,277,596 | | | $ | 118,082,466 | | | $ | 2,773,823,437 | | | $ | 360,367,279 | |
| Undistributed (distributions in excess of) net investment income | | | 418,280 | | | | (280,607 | ) | | | (72,314,132 | ) | | | 4,996 | |
| Accumulated net realized loss | | | (97,924,185 | ) | | | (22,383,120 | ) | | | (789,590,217 | ) | | | (85,892,148 | ) |
| Net unrealized appreciation | | | 8,907,167 | | | | 15,052,704 | | | | 390,141,522 | | | | 38,388,063 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 142,678,858 | | | $ | 110,471,443 | | | $ | 2,302,060,610 | | | $ | 312,868,190 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | 1,348,967 | | | $ | — | | | $ | 34,077,088 | | | $ | 15,369,854 | |
| * Cost of investments in securities | | $ | 126,354,512 | | | $ | 92,962,634 | | | $ | 1,805,660,098 | | | $ | 247,407,233 | |
| ** Cost of investments in affiliates | | $ | — | | | $ | — | | | $ | 19,982,657 | | | $ | — | |
| *** Cost of short-term investments | | $ | 1,417,400 | | | $ | — | | | $ | 35,379,069 | | | $ | 16,010,478 | |
| **** Cost of short-term investments in affiliates | | $ | — | | | $ | 1,276,000 | | | $ | 73,754,366 | | | $ | 23,908,734 | |
| ***** Cost of foreign currencies | | $ | 753,817 | | | $ | — | | | $ | 547,624 | | | $ | — | |
See Accompanying Notes to Financial Statements
26
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Global
| | Global
| | Global
| | Global
|
| | | Equity Dividend
| | Natural Resources
| | Real Estate
| | Value Choice
|
| | | Fund | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 44,696,628 | | | $ | 106,143,003 | | | $ | 1,004,722,392 | | | $ | 159,159,125 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 4,410,584 | | | | 12,103,166 | | | | 66,049,868 | | | | 5,364,848 | |
| Net asset value and redemption price per share | | $ | 10.13 | | | $ | 8.77 | | | $ | 15.21 | | | $ | 29.67 | |
Maximum offering price per share (5.75%)(1) | | $ | 10.75 | | | $ | 9.31 | | | $ | 16.14 | | | $ | 31.48 | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 13,969,627 | | | | n/a | | | $ | 22,324,969 | | | $ | 8,139,188 | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | 1,382,422 | | | | n/a | | | | 1,757,559 | | | | 257,184 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 10.11 | | | | n/a | | | $ | 12.70 | | | $ | 31.65 | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 34,478,000 | | | | n/a | | | $ | 181,541,006 | | | $ | 75,752,870 | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | 3,420,903 | | | | n/a | | | | 13,511,387 | | | | 2,695,970 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 10.08 | | | | n/a | | | $ | 13.44 | | | $ | 28.10 | |
Class I: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 4,678,009 | | | $ | 4,031,358 | | | $ | 864,831,376 | | | $ | 57,482,285 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 461,189 | | | | 460,276 | | | | 56,841,167 | | | | 1,922,679 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 10.14 | | | $ | 8.76 | | | $ | 15.21 | | | $ | 29.90 | |
Class O: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 15,090,645 | | | | n/a | | | $ | 14,466,386 | | | | n/a | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | n/a | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | | n/a | |
| Shares outstanding | | | 1,491,572 | | | | n/a | | | | 951,150 | | | | n/a | |
| Net asset value, redemption price and maximum offering price per share | | $ | 10.12 | | | | n/a | | | $ | 15.21 | | | | n/a | |
Class W: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 29,765,949 | | | $ | 297,082 | | | $ | 214,174,481 | | | $ | 12,334,722 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 2,693,960 | | | | 26,915 | | | | 14,055,524 | | | | 413,092 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 11.05 | | | $ | 11.04 | | | $ | 15.24 | | | $ | 29.86 | |
| |
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
27
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | |
| | | Asia-Pacific
| | Emerging
| | European
| | ING
|
| | | Real Estate
| | Countries
| | Real Estate
| | Foreign
|
| | | Fund | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 4,786,116 | | | $ | 164,260,084 | | | $ | 3,772,323 | | | $ | 185,484,111 | |
| Investments in affiliates** | | | 169,392 | | | | — | | | | — | | | | — | |
| Short-term investments at value*** | | | — | | | | 3,088,262 | | | | — | | | | 3,581,769 | |
| Short-term investments in affiliates**** | | | 67,766 | | | | — | | | | 30,044 | | | | 5,841,952 | |
| Cash | | | — | | | | 2,341,448 | | | | — | | | | 170 | |
| Foreign currencies at value***** | | | 2,217 | | | | 3,778,031 | | | | 13,866 | | | | 3,413,132 | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 110,717 | | | | 1,504,987 | | | | 138,120 | | | | 7,206,717 | |
| Fund shares sold | | | 2,917 | | | | 113,145 | | | | — | | | | 89,482 | |
| Dividends and interest | | | 29,157 | | | | 280,265 | | | | 32,644 | | | | 724,503 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | 601,509 | |
| Prepaid expenses | | | 26,188 | | | | 44,090 | | | | 26,566 | | | | 30,854 | |
| Reimbursement due from manager | | | 7,646 | | | | — | | | | 8,404 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 5,202,116 | | | | 175,410,312 | | | | 4,021,967 | | | | 206,974,199 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 39,666 | | | | 400,074 | | | | 65,384 | | | | 5,499,049 | |
| Payable for fund shares redeemed | | | 5,523 | | | | 328,482 | | | | — | | | | 8,364,084 | |
| Payable upon receipt of securities loaned | | | — | | | | 3,120,585 | | | | — | | | | 3,616,510 | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | 434,507 | |
| Payable to affiliates | | | 6,107 | | | | 232,212 | | | | 4,701 | | | | 266,867 | |
| Payable for directors fees | | | 731 | | | | 20,064 | | | | 638 | | | | 12,936 | |
| Other accrued expenses and liabilities | | | 29,560 | | | | 157,450 | | | | 17,711 | | | | 265,093 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 81,587 | | | | 4,258,867 | | | | 88,434 | | | | 18,459,046 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 5,120,529 | | | $ | 171,151,445 | | | $ | 3,933,533 | | | $ | 188,515,153 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 10,279,443 | | | $ | 226,501,314 | | | $ | 6,433,114 | | | $ | 294,511,302 | |
| Undistributed (distributions in excess of) net investment income | | | (51,413 | ) | | | (646,955 | ) | | | (46,212 | ) | | | 746,183 | |
| Accumulated net realized loss | | | (5,608,905 | ) | | | (96,078,448 | ) | | | (2,685,860 | ) | | | (137,734,246 | ) |
| Net unrealized appreciation | | | 501,404 | | | | 41,375,534 | | | | 232,491 | | | | 30,991,914 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 5,120,529 | | | $ | 171,151,445 | | | $ | 3,933,533 | | | $ | 188,515,153 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | — | | | $ | 2,975,211 | | | $ | — | | | $ | 3,020,239 | |
| * Cost of investments in securities | | $ | 4,287,323 | | | $ | 122,858,460 | | | $ | 3,539,320 | | | $ | 154,610,479 | |
| ** Cost of investments in affiliates | | $ | 166,523 | | | $ | — | | | $ | — | | | $ | — | |
| *** Cost of short-term investments | | $ | — | | | $ | 3,120,585 | | | $ | — | | | $ | 3,616,510 | |
| **** Cost of short-term investments in affiliates | | $ | 67,766 | | | $ | — | | | $ | 30,044 | | | $ | 5,841,952 | |
| ***** Cost of foreign currencies | | $ | 2,217 | | | $ | 3,771,105 | | | $ | 13,866 | | | $ | 3,415,819 | |
See Accompanying Notes to Financial Statements
28
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | |
| | | Asia-Pacific
| | Emerging
| | European
| | ING
|
| | | Real Estate
| | Countries
| | Real Estate
| | Foreign
|
| | | Fund | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 3,897,428 | | | $ | 82,205,347 | | | $ | 3,701,690 | | | $ | 69,673,883 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 720,781 | | | | 3,098,910 | | | | 615,481 | | | | 5,188,603 | |
| Net asset value and redemption price per share | | $ | 5.41 | | | $ | 26.53 | | | $ | 6.01 | | | $ | 13.43 | |
Maximum offering price per share (5.75%)(1) | | $ | 5.74 | | | $ | 28.15 | | | $ | 6.38 | | | $ | 14.25 | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 28,075 | | | $ | 4,670,645 | | | $ | 96,465 | | | $ | 11,689,049 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 5,219 | | | | 178,164 | | | | 16,141 | | | | 908,288 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 5.38 | | | $ | 26.22 | | | $ | 5.98 | | | $ | 12.87 | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,192,215 | | | $ | 17,383,389 | | | $ | 78,877 | | | $ | 62,359,294 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 221,551 | | | | 706,394 | | | | 13,182 | | | | 4,844,183 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 5.38 | | | $ | 24.61 | | | $ | 5.98 | | | $ | 12.87 | |
Class I: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 2,811 | | | $ | 59,829,735 | | | $ | 56,501 | | | $ | 43,147,947 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 522 | | | | 2,248,292 | | | | 9,411 | | | | 3,150,319 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 5.38 | | | $ | 26.61 | | | $ | 6.00 | | | $ | 13.70 | |
Class W: | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | $ | 7,062,329 | | | | n/a | | | $ | 1,644,980 | |
| Shares authorized | | | n/a | | | | unlimited | | | | n/a | | | | unlimited | |
| Par value | | | n/a | | | $ | — | | | | n/a | | | $ | — | |
| Shares outstanding | | | n/a | | | | 253,638 | | | | n/a | | | | 112,393 | |
| Net asset value, redemption price and maximum offering price per share | | | n/a | | | $ | 27.84 | | | | n/a | | | $ | 14.64 | |
| |
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
29
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Greater
| | Index Plus
| | International
| | International
|
| | | China
| | International Equity
| | Capital Appreciation
| | Real Estate
|
| | | Fund | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 45,587,777 | | | $ | 106,905,892 | | | $ | 93,660,360 | | | $ | 513,319,631 | |
| Investments in affiliates** | | | — | | | | — | | | | — | | | | 6,576,188 | |
| Short-term investments at value*** | | | — | | | | — | | | | 9,289,365 | | | | — | |
| Cash | | | 2,278 | | | | 1,601,835 | | | | 317,087 | | | | 1,802,078 | |
| Foreign currencies at value**** | | | 371,954 | | | | — | | | | 668 | | | | 183,015 | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 1,588,740 | | | | 6 | | | | 950,670 | | | | 16,554,989 | |
| Fund shares sold | | | 63,705 | | | | 73,196 | | | | 5,576,960 | | | | 2,235,679 | |
| Dividends and interest | | | 109,469 | | | | 560,723 | | | | 304,013 | | | | 3,243,232 | |
| Prepaid expenses | | | 37,638 | | | | 41,044 | | | | 36,605 | | | | 67,854 | |
| Reimbursement due from manager | | | — | | | | — | | | | 27,763 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 47,761,561 | | | | 109,182,696 | | | | 110,163,491 | | | | 543,982,666 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 838,008 | | | | 1,123 | | | | 494,194 | | | | 13,066,780 | |
| Payable for fund shares redeemed | | | 146,574 | | | | 144,725 | | | | 197,677 | | | | 656,072 | |
| Payable upon receipt of securities loaned | | | — | | | | — | | | | 9,305,318 | | | | — | |
| Payable to affiliates | | | 65,320 | | | | 76,372 | | | | 92,498 | | | | 526,870 | |
| Payable to custodian due to foreign currency overdraft***** | | | — | | | | 20,929 | | | | — | | | | — | |
| Payable for directors fees | | | 3,025 | | | | 7,206 | | | | 13,023 | | | | 8,700 | |
| Other accrued expenses and liabilities | | | 68,672 | | | | 151,573 | | | | 65,588 | | | | 272,665 | |
| Payable for borrowings against line of credit | | | 940,000 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 2,061,599 | | | | 401,928 | | | | 10,168,298 | | | | 14,531,087 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 45,699,962 | | | $ | 108,780,768 | | | $ | 99,995,193 | | | $ | 529,451,579 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 44,495,543 | | | $ | 188,247,356 | | | $ | 155,723,553 | | | $ | 809,158,973 | |
| Undistributed (distributions in excess of) net investment income | | | (349,415 | ) | | | 713,961 | | | | 160,028 | | | | 830,384 | |
| Accumulated net realized loss | | | (5,327,251 | ) | | | (87,857,572 | ) | | | (69,633,581 | ) | | | (330,520,212 | ) |
| Net unrealized appreciation | | | 6,881,085 | | | | 7,677,023 | | | | 13,745,193 | | | | 49,982,434 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 45,699,962 | | | $ | 108,780,768 | | | $ | 99,995,193 | | | $ | 529,451,579 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | — | | | $ | — | | | $ | 8,554,903 | | | $ | — | |
| * Cost of investments in securities | | $ | 38,706,378 | | | $ | 99,235,174 | | | $ | 79,898,020 | | | $ | 463,397,977 | |
| ** Cost of investments in affiliates | | $ | — | | | $ | — | | | $ | — | | | $ | 6,483,307 | |
| *** Cost of short-term investments | | $ | — | | | $ | — | | | $ | 9,305,318 | | | $ | — | |
| **** Cost of foreign currencies | | $ | 371,973 | | | $ | — | | | $ | 712 | | | $ | 183,013 | |
| ***** Cost of foreign currency overdraft | | $ | — | | | $ | 21,828 | | | $ | — | | | $ | — | |
See Accompanying Notes to Financial Statements
30
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Greater
| | Index Plus
| | International
| | International
|
| | | China
| | International Equity
| | Capital Appreciation
| | Real Estate
|
| | | Fund | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 30,970,670 | | | $ | 8,799,739 | | | $ | 25,070,039 | | | $ | 156,894,315 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 2,143,311 | | | | 1,113,204 | | | | 2,605,495 | | | | 19,614,875 | |
| Net asset value and redemption price per share | | $ | 14.45 | | | $ | 7.90 | | | $ | 9.62 | | | $ | 8.00 | |
Maximum offering price per share (5.75%)(1) | | $ | 15.33 | | | $ | 8.38 | | | $ | 10.21 | | | $ | 8.49 | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 2,765,854 | | | $ | 894,833 | | | $ | 3,762,759 | | | $ | 3,358,746 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 193,205 | | | | 112,759 | | | | 396,187 | | | | 421,696 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 14.32 | | | $ | 7.94 | | | $ | 9.50 | | | $ | 7.96 | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 5,736,216 | | | $ | 1,368,260 | | | $ | 7,618,673 | | | $ | 25,478,263 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 400,463 | | | | 173,641 | | | | 799,348 | | | | 3,200,562 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 14.32 | | | $ | 7.88 | | | $ | 9.53 | | | $ | 7.96 | |
Class I: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 2,176,190 | | | $ | 52,023,801 | | | $ | 52,086,463 | | | $ | 340,142,140 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 150,530 | | | | 6,575,050 | | | | 5,421,924 | | | | 42,472,385 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 14.46 | | | $ | 7.91 | | | $ | 9.61 | | | $ | 8.01 | |
Class O: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 4,051,032 | | | $ | 45,694,135 | | | | n/a | | | | n/a | |
| Shares authorized | | | unlimited | | | | unlimited | | | | n/a | | | | n/a | |
| Par value | | $ | — | | | $ | — | | | | n/a | | | | n/a | |
| Shares outstanding | | | 282,532 | | | | 5,821,949 | | | | n/a | | | | n/a | |
| Net asset value, redemption price and maximum offering price per share | | $ | 14.34 | | | $ | 7.85 | | | | n/a | | | | n/a | |
Class W: | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 11,457,259 | | | $ | 3,578,115 | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | | n/a | | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | n/a | | | | n/a | | | | 1,189,382 | | | | 445,591 | |
| Net asset value, redemption price and maximum offering price per share | | | n/a | | | | n/a | | | $ | 9.63 | | | $ | 8.03 | |
| |
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
31
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
|
| | | International SmallCap
| | International
| | International
|
| | | Multi-Manager
| | Value
| | Value Choice
|
| | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 441,338,215 | | | $ | 1,468,272,657 | | | $ | 50,940,689 | |
| Short-term investments at value** | | | 1,910,126 | | | | 3,699,241 | | | | — | |
| Short-term investments in affiliates*** | | | 2,484,510 | | | | 20,092,210 | | | | 3,990,018 | |
| Cash | | | 4,615,629 | | | | 574 | | | | — | |
| Foreign currencies at value**** | | | 1,675,846 | | | | 380,333 | | | | — | |
| Receivables: | | | | | | | | | | | | |
| Investment securities sold | | | 3,522,996 | | | | 52,930,680 | | | | — | |
| Fund shares sold | | | 463,760 | | | | 2,841,095 | | | | 2,169,989 | |
| Dividends and interest | | | 1,823,660 | | | | 12,306,591 | | | | 208,502 | |
| Prepaid expenses | | | 45,025 | | | | 54,540 | | | | 32,363 | |
| | | | | | | | | | | | | |
| Total assets | | | 457,879,767 | | | | 1,560,577,921 | | | | 57,341,561 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 7,262,129 | | | | 34,834,866 | | | | 340,964 | |
| Payable for fund shares redeemed | | | 2,697,458 | | | | 3,489,241 | | | | 33,663 | |
| Payable upon receipt of securities loaned | | | 1,926,065 | | | | 3,939,699 | | | | — | |
| Payable to affiliates | | | 496,179 | | | | 1,794,403 | | | | 59,873 | |
| Payable to custodian due to foreign currency overdraft***** | | | — | | | | — | | | | 1,807 | |
| Payable for directors fees | | | 22,749 | | | | 42,513 | | | | 2,745 | |
| Accrued foreign taxes on capital gains | | | 233,215 | | | | — | | | | — | |
| Other accrued expenses and liabilities | | | 435,502 | | | | 1,272,322 | | | | 39,260 | |
| | | | | | | | | | | | | |
| Total liabilities | | | 13,073,297 | | | | 45,373,044 | | | | 478,312 | |
| | | | | | | | | | | | | |
NET ASSETS | | $ | 444,806,470 | | | $ | 1,515,204,877 | | | $ | 56,863,249 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | |
| Paid-in capital | | $ | 734,609,081 | | | $ | 2,425,552,637 | | | $ | 71,241,585 | |
| Undistributed net investment income | | | 684,478 | | | | 11,647,248 | | | | 120,420 | |
| Accumulated net realized loss | | | (341,785,243 | ) | | | (829,109,798 | ) | | | (15,235,043 | ) |
| Net unrealized appreciation or depreciation | | | 51,298,154 | | | | (92,885,210 | ) | | | 736,287 | |
| | | | | | | | | | | | | |
NET ASSETS | | $ | 444,806,470 | | | $ | 1,515,204,877 | | | $ | 56,863,249 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| + Including securities loaned at value | | $ | 1,740,502 | | | $ | 3,749,098 | | | $ | — | |
| * Cost of investments in securities | | $ | 389,991,565 | | | $ | 1,560,995,020 | | | $ | 50,202,351 | |
| ** Cost of short-term investments | | $ | 1,926,065 | | | $ | 3,939,699 | | | $ | — | |
| *** Cost of short-term investments in affiliates | | $ | 2,484,510 | | | $ | 20,092,210 | | | $ | 3,990,018 | |
| **** Cost of foreign currencies | | $ | 1,673,354 | | | $ | 378,639 | | | $ | — | |
| ***** Cost of foreign currency overdraft | | $ | — | | | $ | — | | | $ | 1,830 | |
See Accompanying Notes to Financial Statements
32
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
|
| | | International SmallCap
| | International
| | International
|
| | | Multi-Manager
| | Value
| | Value Choice
|
| | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | |
| Net assets | | $ | 151,506,588 | | | $ | 634,129,156 | | | $ | 20,355,809 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | 0.01 | | | $ | — | |
| Shares outstanding | | | 4,376,058 | | | | 55,699,948 | | | | 1,964,115 | |
| Net asset value and redemption price per share | | $ | 34.62 | | | $ | 11.38 | | | $ | 10.36 | |
Maximum offering price per share (5.75%)(1) | | $ | 36.73 | | | $ | 12.07 | | | $ | 10.99 | |
Class B: | | | | | | | | | | | | |
| Net assets | | $ | 6,862,977 | | | $ | 18,636,658 | | | $ | 1,691,829 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | 0.01 | | | $ | — | |
| Shares outstanding | | | 187,877 | | | | 1,648,736 | | | | 165,508 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 36.53 | | | $ | 11.30 | | | $ | 10.22 | |
Class C: | | | | | | | | | | | | |
| Net assets | | $ | 32,485,302 | | | $ | 241,840,558 | | | $ | 5,008,475 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | 0.01 | | | $ | — | |
| Shares outstanding | | | 1,001,978 | | | | 21,873,768 | | | | 488,369 | |
Net asset value, redemption price and maximum offering price per share(2) | | $ | 32.42 | | | $ | 11.06 | | | $ | 10.26 | |
Class I: | | | | | | | | | | | | |
| Net assets | | $ | 210,609,502 | | | $ | 598,367,367 | | | $ | 29,772,091 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | 0.01 | | | $ | — | |
| Shares outstanding | | | 6,079,660 | | | | 52,713,275 | | | | 2,875,341 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 34.64 | | | $ | 11.35 | | | $ | 10.35 | |
Class O: | | | | | | | | | | | | |
| Net assets | | $ | 1,093,710 | | | | n/a | | | | n/a | |
| Shares authorized | | | unlimited | | | | n/a | | | | n/a | |
| Par value | | $ | — | | | | n/a | | | | n/a | |
| Shares outstanding | | | 31,810 | | | | n/a | | | | n/a | |
| Net asset value, redemption price and maximum offering price per share | | $ | 34.38 | | | | n/a | | | | n/a | |
Class W: | | | | | | | | | | | | |
| Net assets | | $ | 42,248,391 | | | $ | 22,231,138 | | | $ | 35,045 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | 0.01 | | | $ | — | |
| Shares outstanding | | | 1,031,510 | | | | 1,958,949 | | | | 3,382 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 40.96 | | | $ | 11.35 | | | $ | 10.36 | |
| |
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
33
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | |
| | | | | ING
| | ING
|
| | | ING
| | Global
| | Diversified
|
| | | Russia
| | Bond
| | International
|
| | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 444,148,753 | | | $ | 383,998,758 | | | $ | — | |
| Investments in affiliated underlying funds** | | | — | | | | — | | | | 212,961,713 | |
| Short-term investments at value*** | | | 19,400,895 | | | | — | | | | — | |
| Short-term investments in affiliates**** | | | — | | | | 12,076,000 | | | | — | |
| Short-term investments at amortized cost | | | — | | | | 42,153,480 | | | | — | |
| Cash | | | 10,917,277 | | | | 590,331 | | | | 2,769,213 | |
| Receivable for derivatives collateral held at broker (Note 2) | | | — | | | | 30,000 | | | | — | |
| Cash collateral for futures | | | — | | | | 2,633,352 | | | | — | |
| Foreign cash collateral for futures***** | | | — | | | | 596,304 | | | | — | |
| Foreign currencies at value****** | | | — | | | | 40,830 | | | | — | |
| Receivables: | | | | | | | | | | | | |
| Investment securities purchased on a delayed-delivery or when-issued basis | | | — | | | | 9,852,301 | | | | — | |
| Investment securities sold | | | 1,698,169 | | | | 2,174,825 | | | | 9,806,520 | |
| Fund shares sold | | | 819,601 | | | | 15,599,095 | | | | 221,570 | |
| Dividends and interest | | | 651,960 | | | | 24,956,256 | | | | — | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 2,169,723 | | | | — | |
| Unrealized appreciation on swap agreements | | | — | | | | 288,215 | | | | — | |
| Prepaid expenses | | | 15,184 | | | | 37,576 | | | | 51,143 | |
| Reimbursement due from manager | | | — | | | | 23,614 | | | | 38,442 | |
| | | | | | | | | | | | | |
| Total assets | | | 477,651,839 | | | | 497,220,660 | | | | 225,848,601 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | |
| Payable for investment securities purchased on a delayed-delivery or when-issued basis | | | — | | | | 28,028,128 | | | | — | |
| Payable for terminated investment contracts | | | — | | | | 167,542 | | | | — | |
| Payable for investment securities purchased | | | 3,877,100 | | | | 9,060,724 | | | | 9,606,934 | |
| Payable for fund shares redeemed | | | 664,463 | | | | 1,064,012 | | | | 752,199 | |
| Payable upon receipt of securities loaned | | | 19,569,185 | | | | — | | | | — | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | 3,678,642 | | | | — | |
| Unrealized depreciation on swap agreements | | | — | | | | 92,352 | | | | — | |
| Payable to affiliates | | | 614,004 | | | | 261,206 | | | | 115,507 | |
| Payable for directors fees | | | 20,410 | | | | 2,033 | | | | 3,318 | |
| Other accrued expenses and liabilities | | | 444,263 | | | | 20,108,014 | | | | 273,081 | |
| | | | | | | | | | | | | |
| Total liabilities | | | 25,189,425 | | | | 62,462,653 | | | | 10,751,039 | |
| | | | | | | | | | | | | |
NET ASSETS | | $ | 452,462,414 | | | $ | 434,758,007 | | | $ | 215,097,562 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | |
| Paid-in capital | | $ | 461,380,591 | | | $ | 419,653,306 | | | $ | 378,463,667 | |
| Undistributed (distributions in excess of) net investment income | | | (3,521,548 | ) | | | 1,280,891 | | | | 275,707 | |
| Accumulated net realized loss | | | (99,682,403 | ) | | | (896,151 | ) | | | (168,699,356 | ) |
| Net unrealized appreciation | | | 94,285,774 | | | | 14,719,961 | | | | 5,057,544 | |
| | | | | | | | | | | | | |
NET ASSETS | | $ | 452,462,414 | | | $ | 434,758,007 | | | $ | 215,097,562 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| + Including securities loaned at value | | $ | 17,399,221 | | | $ | — | | | $ | — | |
| * Cost of investments in securities | | $ | 349,696,247 | | | $ | 366,878,479 | | | $ | — | |
| ** Cost of investments in affiliated underlying funds | | $ | — | | | $ | — | | | $ | 207,904,169 | |
| *** Cost of short-term investments | | $ | 19,569,185 | | | $ | — | | | $ | — | |
| **** Cost of short-term investments in affiliates | | $ | — | | | $ | 12,076,000 | | | $ | — | |
| ***** Cost of foreign cash collateral for futures | | $ | — | | | $ | 593,523 | | | $ | — | |
| ****** Cost of foreign currencies | | $ | — | | | $ | 40,574 | | | $ | — | |
See Accompanying Notes to Financial Statements
34
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | |
| | | | | ING
| | ING
|
| | | ING
| | Global
| | Diversified
|
| | | Russia
| | Bond
| | International
|
| | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | |
| Net assets | | $ | 445,011,869 | | | $ | 154,646,261 | | | $ | 117,516,085 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 12,442,466 | | | | 13,128,266 | | | | 13,424,382 | |
| Net asset value and redemption price per share | | $ | 35.77 | | | $ | 11.78 | | | $ | 8.75 | |
| Maximum offering price per share | | $ | 37.95 | (1) | | $ | 12.08 | (2) | | $ | 9.28 | (1) |
Class B: | | | | | | | | | | | | |
| Net assets | | | n/a | | | $ | 4,545,717 | | | $ | 18,516,699 | |
| Shares authorized | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | n/a | | | | 389,204 | | | | 2,121,187 | |
Net asset value, redemption price and maximum offering price per share(3) | | | n/a | | | $ | 11.68 | | | $ | 8.73 | |
Class C: | | | | | | | | | | | | |
| Net assets | | | n/a | | | $ | 68,239,088 | | | $ | 64,548,061 | |
| Shares authorized | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | n/a | | | | 5,820,972 | | | | 7,408,658 | |
Net asset value, redemption price and maximum offering price per share(3) | | | n/a | | | $ | 11.72 | | | $ | 8.71 | |
Class I: | | | | | | | | | | | | |
| Net assets | | $ | 7,450,545 | | | $ | 197,596,728 | | | $ | 9,044,804 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 207,997 | | | | 16,822,813 | | | | 1,035,691 | |
| Net asset value, redemption price and maximum offering price per share | | $ | 35.82 | | | $ | 11.75 | | | $ | 8.73 | |
Class O: | | | | | | | | | | | | |
| Net assets | | | n/a | | | $ | 3,464,799 | | | $ | 2,620,771 | |
| Shares authorized | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | n/a | | | | 298,777 | | | | 301,278 | |
| Net asset value, redemption price and maximum offering price per share | | | n/a | | | $ | 11.60 | | | $ | 8.70 | |
Class R: | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 195,881 | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | |
| Par value | | | n/a | | | | n/a | | | $ | — | |
| Shares outstanding | | | n/a | | | | n/a | | | | 22,617 | |
| Net asset value, redemption price and maximum offering price per share | | | n/a | | | | n/a | | | $ | 8.66 | |
Class W: | | | | | | | | | | | | |
| Net assets | | | n/a | | | $ | 6,265,414 | | | $ | 2,655,261 | |
| Shares authorized | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | n/a | | | | 540,366 | | | | 304,901 | |
| Net asset value, redemption price and maximum offering price per share | | | n/a | | | $ | 11.59 | | | $ | 8.71 | |
| |
| (1) | Maximum offering price is 5.75% and is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Maximum offering price is 2.50% and is computed at 100/97.50 of net asset value. On purchases of $100,000 or more, the offering price is reduced. |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
35
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Global
| | Global
| | Global
| | Global
|
| | | Equity Dividend
| | Natural Resources
| | Real Estate
| | Value Choice
|
| | | Fund | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
Dividends, net of foreign taxes withheld*(1) | | $ | 2,696,744 | | | $ | 720,089 | | | $ | 32,625,060 | | | $ | 1,952,336 | |
| Interest* | | | — | | | | — | | | | 468,228 | | | | 62,929 | |
| Securities lending income, net | | | 4,669 | | | | — | | | | 76,872 | | | | 18,034 | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 2,701,413 | | | | 720,089 | | | | 33,170,160 | | | | 2,033,299 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 497,764 | | | | 452,896 | | | | 7,050,515 | | | | 1,089,058 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 57,833 | | | | 127,740 | | | | 1,177,399 | | | | 175,057 | |
| Class B | | | 75,828 | | | | — | | | | 111,003 | | | | 39,603 | |
| Class C | | | 182,152 | | | | — | | | | 807,247 | | | | 310,975 | |
| Class O | | | 19,073 | | | | — | | | | 17,344 | | | | — | |
Class Q(2) | | | — | | | | — | | | | — | | | | 430 | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 49,580 | | | | 79,862 | | | | 1,066,920 | | | | 109,745 | |
| Class B | | | 16,214 | | | | — | | | | 25,163 | | | | 6,160 | |
| Class C | | | 38,801 | | | | — | | | | 183,144 | | | | 48,743 | |
| Class I | | | 1,265 | | | | — | | | | 268,253 | | | | 290 | |
| Class O | | | 17,141 | | | | — | | | | 15,731 | | | | — | |
| Class W | | | 26,912 | | | | 174 | | | | 196,007 | | | | 4,225 | |
| Administrative service fees | | | 71,108 | | | | 52,121 | | | | 976,213 | | | | 121,005 | |
| Shareholder reporting expense | | | 34,085 | | | | 23,242 | | | | 244,539 | | | | 32,717 | |
| Registration fees | | | 40,182 | | | | 22,249 | | | | 99,347 | | | | 38,759 | |
| Professional fees | | | 10,878 | | | | 14,020 | | | | 88,682 | | | | 21,807 | |
| Custody and accounting expense | | | 22,513 | | | | 13,195 | | | | 377,994 | | | | 30,396 | |
| Directors fees | | | 2,538 | | | | 2,534 | | | | 18,281 | | | | 2,060 | |
| Miscellaneous expense | | | 5,590 | | | | 4,378 | | | | 38,373 | | | | 8,190 | |
| Interest expense | | | — | | | | 226 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 1,169,457 | | | | 792,637 | | | | 12,762,155 | | | | 2,039,220 | |
| Net waived and reimbursed fees | | | (18,077 | ) | | | (406 | ) | | | (24,723 | ) | | | (20,396 | ) |
| Brokerage commission recapture | | | — | | | | — | | | | — | | | | (5,115 | ) |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 1,151,380 | | | | 792,231 | | | | 12,737,432 | | | | 2,013,709 | |
| | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 1,550,033 | | | | (72,142 | ) | | | 20,432,728 | | | | 19,590 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | 6,480,894 | | | | 4,425,073 | | | | (32,990,880 | ) | | | 14,816,853 | |
| Foreign currency related transactions | | | (107,513 | ) | | | 5,165 | | | | (236,684 | ) | | | (5,719 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) | | | 6,373,381 | | | | 4,430,238 | | | | (33,227,564 | ) | | | 14,811,134 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | 3,729,005 | | | | 7,792,157 | | | | 228,887,877 | | | | 13,052,124 | |
| Foreign currency related transactions | | | 6,387 | | | | (239 | ) | | | (58,277 | ) | | | (7,854 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation | | | 3,735,392 | | | | 7,791,918 | | | | 228,829,600 | | | | 13,044,270 | |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain | | | 10,108,773 | | | | 12,222,156 | | | | 195,602,036 | | | | 27,855,404 | |
| | | | | | | | | | | | | | | | | |
Increase in net assets resulting from operations | | $ | 11,658,806 | | | $ | 12,150,014 | | | $ | 216,034,764 | | | $ | 27,874,994 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 116,596 | | | $ | 31,389 | | | $ | 1,550,530 | | | $ | 138,136 | |
(1) Dividends from affiliates | | $ | — | | | $ | 685 | | | $ | 503,040 | | | $ | 18,505 | |
(2) Effective November 20, 2009, Class Q shareholders of ING Global Value Choice Fund were converted to Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
36
STATEMENTS OF OPERATIONS for the six months ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | |
| | | Asia-Pacific
| | Emerging
| | European
| | ING
|
| | | Real Estate
| | Countries
| | Real Estate
| | Foreign
|
| | | Fund | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
Dividends, net of foreign taxes withheld*(1) | | $ | 72,951 | | | $ | 820,901 | | | $ | 82,144 | | | $ | 2,196,545 | |
| Interest* | | | 3,150 | | | | 28,140 | | | | 8 | | | | 109,636 | |
| Securities lending income, net | | | — | | | | 3,942 | | | | — | | | | 5,722 | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 76,101 | | | | 852,983 | | | | 82,152 | | | | 2,311,903 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 21,635 | | | | 1,002,804 | | | | 22,636 | | | | 1,125,218 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 4,073 | | | | 142,022 | | | | 5,381 | | | | 102,262 | |
| Class B | | | 136 | | | | 24,115 | | | | 503 | | | | 64,717 | |
| Class C | | | 5,195 | | | | 86,564 | | | | 427 | | | | 353,521 | |
Class Q(2)(3) | | | — | | | | 6,794 | | | | — | | | | 4 | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 1,274 | | | | 75,662 | | | | 3,887 | | | | 81,314 | |
| Class B | | | 10 | | | | 4,464 | | | | 89 | | | | 12,865 | |
| Class C | | | 406 | | | | 16,132 | | | | 76 | | | | 70,271 | |
| Class I | | | — | | | | 3,960 | | | | 3 | | | | 1,113 | |
Class Q(2)(3) | | | — | | | | 524 | | | | — | | | | — | |
| Class W | | | — | | | | 2,717 | | | | — | | | | 1,227 | |
| Administrative service fees | | | 2,164 | | | | 80,224 | | | | 2,264 | | | | 112,520 | |
| Shareholder reporting expense | | | 762 | | | | 46,024 | | | | 216 | | | | 45,140 | |
| Registration fees | | | 26,200 | | | | 38,824 | | | | 26,041 | | | | 40,636 | |
| Professional fees | | | 4,446 | | | | 23,154 | | | | 4,553 | | | | 27,568 | |
| Custody and accounting expense | | | 17,253 | | | | 78,431 | | | | 19,983 | | | | 154,290 | |
| Directors fees | | | 162 | | | | 4,525 | | | | 181 | | | | 5,246 | |
| Miscellaneous expense | | | 3,305 | | | | 12,712 | | | | 1,644 | | | | 9,990 | |
| Interest expense | | | 43 | | | | 150 | | | | 140 | | | | 2,768 | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 87,064 | | | | 1,649,802 | | | | 88,024 | | | | 2,210,670 | |
| Net waived and reimbursed fees | | | (45,022 | ) | | | (149,864 | ) | | | (47,211 | ) | | | (112,054 | ) |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 42,042 | | | | 1,499,938 | | | | 40,813 | | | | 2,098,616 | |
| | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 34,059 | | | | (646,955 | ) | | | 41,339 | | | | 213,287 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | 31,520 | | | | 7,183,373 | | | | 35,396 | | | | 23,616,440 | |
| Foreign currency related transactions | | | (389 | ) | | | (242,529 | ) | | | (9,349 | ) | | | (234,797 | ) |
| Futures | | | — | | | | — | | | | — | | | | (7,365 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized gain | | | 31,131 | | | | 6,940,844 | | | | 26,047 | | | | 23,374,278 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | 126,840 | | | | 10,081,025 | | | | (320,309 | ) | | | (12,674,382 | ) |
| Foreign currency related transactions | | | (437 | ) | | | 34,117 | | | | 378 | | | | 666,305 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation | | | 126,403 | | | | 10,115,142 | | | | (319,931 | ) | | | (12,008,077 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) | | | 157,534 | | | | 17,055,986 | | | | (293,884 | ) | | | 11,366,201 | |
| | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting from operations | | $ | 191,593 | | | $ | 16,409,031 | | | $ | (252,545 | ) | | $ | 11,579,488 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 3,630 | | | $ | 46,989 | | | $ | 7,044 | | | $ | 245,487 | |
(1) Dividends from affiliates | | $ | 1,820 | | | $ | — | | | $ | 19 | | | $ | 419 | |
(2) Effective November 20, 2009, Class Q shareholders of ING Foreign Fund were converted to Class W shares of the Fund. |
(3) Effective March 8, 2010, Class Q shareholders of ING Emerging Countries Fund were converted to Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
37
STATEMENTS OF OPERATIONS for the six months ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Greater
| | Index Plus
| | International
| | International
|
| | | China
| | International Equity
| | Capital Appreciation
| | Real Estate
|
| | | Fund | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
Dividends, net of foreign taxes withheld*(1) | | $ | 183,338 | | | $ | 1,421,550 | | | $ | 784,001 | | | $ | 9,534,091 | |
| Interest* | | | 13 | | | | 12,594 | | | | 5,503 | | | | 171,485 | |
| Securities lending income, net | | | — | | | | — | | | | 25,451 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 183,351 | | | | 1,434,144 | | | | 814,955 | | | | 9,705,576 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 277,602 | | | | 304,813 | | | | 440,880 | | | | 2,523,170 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 41,888 | | | | 11,347 | | | | 32,759 | | | | 170,667 | |
| Class B | | | 15,177 | | | | 5,196 | | | | 21,093 | | | | 18,040 | |
| Class C | | | 32,962 | | | | 6,988 | | | | 39,540 | | | | 129,123 | |
| Class O | | | 4,529 | | | | 59,123 | | | | — | | | | — | |
Class Q(2) | | | — | | | | — | | | | 10,433 | | | | — | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 31,698 | | | | 9,398 | | | | 30,033 | | | | 89,308 | |
| Class B | | | 2,876 | | | | 1,067 | | | | 4,807 | | | | 2,374 | |
| Class C | | | 6,225 | | | | 1,441 | | | | 9,075 | | | | 16,928 | |
| Class I | | | 625 | | | | 4,382 | | | | 446 | | | | 6,081 | |
| Class O | | | 3,417 | | | | 48,899 | | | | — | | | | — | |
Class Q(2) | | | — | | | | — | | | | 129 | | | | — | |
| Class W | | | — | | | | — | | | | 3,255 | | | | 1,615 | |
| Administrative service fees | | | 24,139 | | | | 55,420 | | | | 51,868 | | | | 268,906 | |
| Shareholder reporting expense | | | 10,492 | | | | 31,296 | | | | 9,602 | | | | 48,737 | |
| Registration fees | | | 32,477 | | | | 28,309 | | | | 31,742 | | | | 48,245 | |
| Professional fees | | | 12,507 | | | | 20,828 | | | | 25,555 | | | | 60,207 | |
| Custody and accounting expense | | | 29,050 | | | | 44,186 | | | | 52,554 | | | | 165,628 | |
| Directors fees | | | 1,340 | | | | 2,105 | | | | 2,675 | | | | 7,964 | |
| Miscellaneous expense | | | 5,310 | | | | 12,162 | | | | 11,123 | | | | 15,198 | |
| Interest expense | | | 321 | | | | 368 | | | | 846 | | | | 1,918 | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 532,635 | | | | 647,328 | | | | 778,415 | | | | 3,574,109 | |
| Net waived and reimbursed fees | | | — | | | | (59,836 | ) | | | (117,582 | ) | | | (40,646 | ) |
| Brokerage commission recapture | | | — | | | | — | | | | (4,454 | ) | | | — | |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 532,635 | | | | 587,492 | | | | 656,379 | | | | 3,533,463 | |
| | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | (349,284 | ) | | | 846,652 | | | | 158,576 | | | | 6,172,113 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | 1,853,677 | | | | 3,825,352 | | | | 3,055,496 | | | | (17,112,251 | ) |
| Foreign currency related transactions | | | (2,175 | ) | | | (65,852 | ) | | | (17,718 | ) | | | (158,200 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) | | | 1,851,502 | | | | 3,759,500 | | | | 3,037,778 | | | | (17,270,451 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | (385,487 | ) | | | (960,788 | ) | | | 4,373,046 | | | | 15,499,139 | |
| Foreign currency related transactions | | | (30 | ) | | | (17,981 | ) | | | (5,173 | ) | | | (35,690 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation | | | (385,517 | ) | | | (978,769 | ) | | | 4,367,873 | | | | 15,463,449 | |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) | | | 1,465,985 | | | | 2,780,731 | | | | 7,405,651 | | | | (1,807,002 | ) |
| | | | | | | | | | | | | | | | | |
Increase in net assets resulting from operations | | $ | 1,116,701 | | | $ | 3,627,383 | | | $ | 7,564,227 | | | $ | 4,365,111 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 4,970 | | | $ | 131,892 | | | $ | 76,080 | | | $ | 682,697 | |
(1) Dividends from affiliates | | $ | — | | | $ | — | | | $ | — | | | $ | 145,335 | |
(2) Effective March 8, 2010, Class Q shareholders of ING International Capital Appreciation Fund were converted to Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
38
STATEMENTS OF OPERATIONS for the six months ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
|
| | | International SmallCap
| | International
| | International
|
| | | Multi-Manager
| | Value
| | Value Choice
|
| | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | |
Dividends, net of foreign taxes withheld*(1) | | $ | 4,126,723 | | | $ | 24,201,913 | | | $ | 603,417 | |
| Interest* | | | 116,735 | | | | 281,383 | | | | — | |
| Securities lending income, net | | | 37,877 | | | | 61,119 | | | | — | |
| | | | | | | | | | | | | |
| Total investment income | | | 4,281,335 | | | | 24,544,415 | | | | 603,417 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | |
| Investment management fees | | | 2,170,682 | | | | 8,036,987 | | | | 269,462 | |
| Distribution and service fees: | | | | | | | | | | | | |
| Class A | | | 313,045 | | | | 1,024,690 | | | | 24,662 | |
| Class B | | | 37,199 | | | | 139,439 | | | | 8,681 | |
| Class C | | | 159,911 | | | | 1,318,116 | | | | 23,340 | |
| Class O | | | 1,012 | | | | — | | | | — | |
Class Q(2) | | | 4,809 | | | | 3,831 | | | | — | |
| Transfer agent fees: | | | | | | | | | | | | |
| Class A | | | 174,382 | | | | 399,028 | | | | 12,081 | |
| Class B | | | 7,257 | | | | 16,668 | | | | 1,063 | |
| Class C | | | 31,167 | | | | 153,777 | | | | 2,860 | |
| Class I | | | 12,303 | | | | 216,497 | | | | 484 | |
| Class O | | | 790 | | | | — | | | | — | |
Class Q(2) | | | 271 | | | | 1,090 | | | | — | |
| Class W | | | 35,763 | | | | 11,797 | | | | 9 | |
| Administrative service fees | | | 217,067 | | | | 803,690 | | | | 26,946 | |
| Shareholder reporting expense | | | 75,147 | | | | 249,362 | | | | 9,477 | |
| Registration fees | | | 44,602 | | | | 48,242 | | | | 28,040 | |
| Professional fees | | | 52,798 | | | | 107,109 | | | | 11,443 | |
| Custody and accounting expense | | | 249,181 | | | | 352,780 | | | | 7,955 | |
| Directors fees | | | 11,946 | | | | 21,410 | | | | 1,179 | |
| Miscellaneous expense | | | 18,010 | | | | 206,529 | | | | 5,990 | |
| Interest expense | | | 2,315 | | | | 14,001 | | | | — | |
| | | | | | | | | | | | | |
| Total expenses | | | 3,619,657 | | | | 13,125,043 | | | | 433,672 | |
| Net waived and reimbursed fees | | | (36,540 | ) | | | (91,573 | ) | | | (1,901 | ) |
| Brokerage commission recapture | | | — | | | | (4,615 | ) | | | — | |
| | | | | | | | | | | | | |
| Net expenses | | | 3,583,117 | | | | 13,028,855 | | | | 431,771 | |
| | | | | | | | | | | | | |
| Net investment income | | | 698,218 | | | | 11,515,560 | | | | 171,646 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | |
| Investments (net of Indian capital gains tax withheld)** | | | 19,413,957 | | | | (2,786,804 | ) | | | 952,645 | |
| Foreign currency related transactions | | | (44,778 | ) | | | (217,711 | ) | | | (30,431 | ) |
| | | | | | | | | | | | | |
| Net realized gain (loss) | | | 19,369,179 | | | | (3,004,515 | ) | | | 922,214 | |
| | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | |
| Investments (net of Indian capital gains tax accrued)*** | | | 27,484,039 | | | | 32,598,016 | | | | 2,792,277 | |
| Foreign currency related transactions | | | (47,104 | ) | | | (491,219 | ) | | | (3,933 | ) |
| | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation | | | 27,436,935 | | | | 32,106,797 | | | | 2,788,344 | |
| | | | | | | | | | | | | |
| Net realized and unrealized gain | | | 46,806,114 | | | | 29,102,282 | | | | 3,710,558 | |
| | | | | | | | | | | | | |
Increase in net assets resulting from operations | | $ | 47,504,332 | | | $ | 40,617,842 | | | $ | 3,882,204 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 361,807 | | | $ | 1,981,841 | | | $ | 49,421 | |
| ** Foreign tax on sale of Indian investments | | $ | 262,729 | | | $ | — | | | $ | — | |
| *** Foreign tax accrued on Indian investments | | $ | 233,215 | | | $ | — | | | $ | — | |
(1) Dividends from affiliates | | $ | 1,890 | | | $ | 15,098 | | | $ | 1,986 | |
(2) Effective November 20, 2009, Class Q shareholders of ING International SmallCap Multi-Manager Fund and ING International Value Fund were converted to Class W shares of each respective Fund. |
See Accompanying Notes to Financial Statements
39
STATEMENTS OF OPERATIONS for the six months ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | |
| | | | | ING
| | ING
|
| | | ING
| | Global
| | Diversified
|
| | | Russia
| | Bond
| | International
|
| | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | |
| Dividends, net of foreign taxes withheld* | | $ | 744,304 | | | $ | — | | | $ | — | |
| Dividends from affiliates | | | — | | | | 11,166 | | | | — | |
| Dividends from affiliated underlying funds | | | — | | | | — | | | | 2,223,831 | |
| Interest* | | | 14,038 | | | | 10,721,198 | | | | — | |
| Securities lending income, net | | | 31,452 | | | | — | | | | — | |
| | | | | | | | | | | | | |
| Total investment income | | | 789,794 | | | | 10,732,364 | | | | 2,223,831 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | |
| Investment management fees | | | 2,605,897 | | | | 729,022 | | | | — | |
| Distribution and service fees: | | | | | | | | | | | | |
| Class A | | | 515,996 | | | | 171,639 | | | | 156,697 | |
| Class B | | | — | | | | 23,737 | | | | 97,487 | |
| Class C | | | — | | | | 296,735 | | | | 350,155 | |
| Class O | | | — | | | | 4,413 | | | | 2,828 | |
| Class R | | | — | | | | — | | | | 498 | |
| Transfer agent fees: | | | | | | | | | | | | |
| Class A | | | 312,647 | | | | 55,367 | | | | 102,082 | |
| Class B | | | — | | | | 1,928 | | | | 15,792 | |
| Class C | | | — | | | | 23,869 | | | | 56,732 | |
| Class I | | | 47 | | | | 5,432 | | | | 4,628 | |
| Class O | | | — | | | | 1,426 | | | | 1,791 | |
| Class R | | | — | | | | — | | | | 160 | |
| Class W | | | — | | | | 1,736 | | | | 2,195 | |
| Administrative service fees | | | 208,470 | | | | 182,254 | | | | 113,263 | |
| Shareholder reporting expense | | | 86,895 | | | | 33,284 | | | | 44,319 | |
| Registration fees | | | 15,661 | | | | 43,536 | | | | 45,873 | |
| Professional fees | | | 25,101 | | | | 20,319 | | | | 18,642 | |
| Custody and accounting expense | | | 525,007 | | | | 112,050 | | | | 12,389 | |
| Directors fees | | | 5,062 | | | | 3,733 | | | | 6,409 | |
| Miscellaneous expense | | | 10,559 | | | | 14,643 | | | | 8,351 | |
| Interest expense | | | — | | | | 1,248 | | | | — | |
| | | | | | | | | | | | | |
| Total expenses | | | 4,311,342 | | | | 1,726,371 | | | | 1,040,291 | |
| Net waived and reimbursed fees | | | — | | | | (93,801 | ) | | | (313,398 | ) |
| | | | | | | | | | | | | |
| Net expenses | | | 4,311,342 | | | | 1,632,570 | | | | 726,893 | |
| | | | | | | | | | | | | |
| Net investment income (loss) | | | (3,521,548 | ) | | | 9,099,794 | | | | 1,496,938 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | |
| Investments | | | (28,248,280 | ) | | | 1,047,844 | | | | — | |
| Sale of investments in affiliated underlying funds | | | — | | | | — | | | | (16,473,045 | ) |
| Foreign currency related transactions | | | (1,502 | ) | | | (4,552,060 | ) | | | — | |
| Futures | | | — | | | | 1,180,291 | | | | — | |
| Swaps | | | — | | | | 1,069,004 | | | | — | |
| Written Options | | | — | | | | 320,304 | | | | — | |
| | | | | | | | | | | | | |
| Net realized loss | | | (28,249,782 | ) | | | (934,617 | ) | | | (16,473,045 | ) |
| | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | |
| Investments | | | 109,611,432 | | | | (4,061,726 | ) | | | — | |
| Investments in affiliated underlying funds | | | — | | | | — | | | | 29,525,118 | |
| Foreign currency related transactions | | | (12,352 | ) | | | (1,351,111 | ) | | | — | |
| Futures | | | — | | | | (679,906 | ) | | | — | |
| Swaps | | | — | | | | 224,349 | | | | — | |
| Written options | | | — | | | | 2,311 | | | | — | |
| | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation | | | 109,599,080 | | | | (5,866,083 | ) | | | 29,525,118 | |
| | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) | | | 81,349,298 | | | | (6,800,700 | ) | | | 13,052,073 | |
| | | | | | | | | | | | | |
Increase in net assets resulting from operations | | $ | 77,827,750 | | | $ | 2,299,094 | | | $ | 14,549,011 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 185,497 | | | $ | 85 | | | $ | — | |
See Accompanying Notes to Financial Statements
40
| | | | | | | | | | | | | | | | | |
| | | ING Global Equity Dividend Fund | | ING Global Natural Resources Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 1,550,033 | | | $ | 3,558,564 | | | $ | (72,142 | ) | | $ | 381,045 | |
| Net realized gain (loss) | | | 6,373,381 | | | | (73,290,060 | ) | | | 4,430,238 | | | | (24,773,442 | ) |
| Net change in unrealized appreciation or depreciation | | | 3,735,392 | | | | 80,191,913 | | | | 7,791,918 | | | | 43,943,525 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 11,658,806 | | | | 10,460,417 | | | | 12,150,014 | | | | 19,551,128 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (426,485 | ) | | | (1,266,772 | ) | | | (297,867 | ) | | | (253,882 | ) |
| Class B | | | (79,729 | ) | | | (316,335 | ) | | | — | | | | — | |
| Class C | | | (194,226 | ) | | | (724,052 | ) | | | — | | | | — | |
| Class I | | | (36,808 | ) | | | (48,623 | ) | | | (4,054 | ) | | | (766 | ) |
| Class O | | | (147,144 | ) | | | (355,824 | ) | | | — | | | | — | |
| Class W | | | (258,542 | ) | | | (310,735 | ) | | | (986 | ) | | | (194 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | (5,296,232 | ) |
| Class I | | | — | | | | — | | | | — | | | | (5,605 | ) |
| Class W | | | — | | | | — | | | | — | | | | (1,418 | ) |
| Return of capital: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (89,224 | ) | | | — | | | | — | |
| Class B | | | — | | | | (31,064 | ) | | | — | | | | — | |
| Class C | | | — | | | | (71,099 | ) | | | — | | | | — | |
| Class I | | | — | | | | (2,889 | ) | | | — | | | | — | |
| Class O | | | — | | | | (25,247 | ) | | | — | | | | — | �� |
| Class W | | | — | | | | (10,305 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (1,142,934 | ) | | | (3,252,169 | ) | | | (302,907 | ) | | | (5,558,097 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 20,191,404 | | | | 34,686,563 | | | | 10,656,615 | | | | 10,330,214 | |
| Reinvestment of distributions | | | 693,498 | | | | 1,993,528 | | | | 265,592 | | | | 4,970,473 | |
| | | | | | | | | | | | | | | | | |
| | | | 20,884,902 | | | | 36,680,091 | | | | 10,922,207 | | | | 15,300,687 | |
| Cost of shares redeemed | | | (27,492,302 | ) | | | (54,101,898 | ) | | | (12,668,447 | ) | | | (12,664,477 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (6,607,400 | ) | | | (17,421,807 | ) | | | (1,746,240 | ) | | | 2,636,210 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 3,908,472 | | | | (10,213,559 | ) | | | 10,100,867 | | | | 16,629,241 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 138,770,386 | | | | 148,983,945 | | | | 100,370,576 | | | | 83,741,335 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 142,678,858 | | | $ | 138,770,386 | | | $ | 110,471,443 | | | $ | 100,370,576 | |
| | | | | | | | | | | | | | | | | |
| Undistributed (distributions in excess of) net investment income at end of period | | $ | 418,280 | | | $ | 11,181 | | | $ | (280,607 | ) | | $ | 94,442 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
41
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Global Real Estate Fund | | ING Global Value Choice Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 20,432,728 | | | $ | 33,848,865 | | | $ | 19,590 | | | $ | 467,178 | |
| Net realized gain (loss) | | | (33,227,564 | ) | | | (503,179,773 | ) | | | 14,811,134 | | | | (11,803,835 | ) |
| Net change in unrealized appreciation or depreciation | | | 228,829,600 | | | | 688,315,397 | | | | 13,044,270 | | | | 65,867,124 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 216,034,764 | | | | 218,984,489 | | | | 27,874,994 | | | | 54,530,467 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (43,283,509 | ) | | | (15,188,664 | ) | | | (751,278 | ) | | | — | |
| Class B | | | (1,126,801 | ) | | | (421,176 | ) | | | (18,461 | ) | | | — | |
| Class C | | | (7,514,404 | ) | | | (2,475,980 | ) | | | (160,740 | ) | | | — | |
| Class I | | | (27,091,622 | ) | | | (8,166,937 | ) | | | (97,710 | ) | | | — | |
| Class O | | | (618,735 | ) | | | (258,598 | ) | | | — | | | | — | |
Class Q(1) | | | — | | | | — | | | | (5,431 | ) | | | — | |
| Class W | | | (7,709,502 | ) | | | (3,115,932 | ) | | | (17,043 | ) | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (865,442 | ) | | | — | | | | — | |
| Class B | | | — | | | | (29,080 | ) | | | — | | | | — | |
| Class C | | | — | | | | (171,978 | ) | | | — | | | | — | |
| Class I | | | — | | | | (327,550 | ) | | | — | | | | — | |
| Class O | | | — | | | | (13,443 | ) | | | — | | | | — | |
| Class W | | | — | | | | (52,833 | ) | | | — | | | | — | |
| Return of capital: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (5,852,941 | ) | | | — | | | | — | |
| Class B | | | — | | | | (159,326 | ) | | | — | | | | — | |
| Class C | | | — | | | | (909,582 | ) | | | — | | | | — | |
| Class I | | | — | | | | (2,604,321 | ) | | | — | | | | — | |
| Class O | | | — | | | | (82,691 | ) | | | — | | | | — | |
| Class W | | | — | | | | (437,241 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (87,344,573 | ) | | | (41,133,715 | ) | | | (1,050,663 | ) | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 781,246,647 | | | | 870,249,148 | | | | 172,913,412 | | | | 164,167,759 | |
| Reinvestment of distributions | | | 70,805,653 | | | | 33,200,656 | | | | 760,106 | | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | 852,052,300 | | | | 903,449,804 | | | | 173,673,518 | | | | 164,167,759 | |
| Cost of shares redeemed | | | (367,187,861 | ) | | | (694,752,679 | ) | | | (63,800,113 | ) | | | (115,689,883 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | 484,864,439 | | | | 208,697,125 | | | | 109,873,405 | | | | 48,477,876 | |
| | | | | | | | | | | | | | | | | |
| Net increase in net assets | | | 613,554,630 | | | | 386,547,899 | | | | 136,697,736 | | | | 103,008,343 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 1,688,505,980 | | | | 1,301,958,081 | | | | 176,170,454 | | | | 73,162,111 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 2,302,060,610 | | | $ | 1,688,505,980 | | | $ | 312,868,190 | | | $ | 176,170,454 | |
| | | | | | | | | | | | | | | | | |
| Undistributed (distributions in excess of) net investment income at end of period | | $ | (72,314,132 | ) | | $ | (5,402,287 | ) | | $ | 4,996 | | | $ | 1,036,069 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Effective November 20, 2009, Class Q shareholders of ING Global Value Choice Fund were converted to Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
42
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Asia-Pacific Real Estate Fund | | ING Emerging Countries Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 34,059 | | | $ | 71,671 | | | $ | (646,955 | ) | | $ | 295,412 | |
| Net realized gain (loss) | | | 31,131 | | | | (3,273,897 | ) | | | 6,940,844 | | | | (41,421,824 | ) |
| Net change in unrealized appreciation or depreciation | | | 126,403 | | | | 3,791,308 | | | | 10,115,142 | | | | 85,926,451 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 191,593 | | | | 589,082 | | | | 16,409,031 | | | | 44,800,039 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (326,643 | ) | | | (64,634 | ) | | | — | | | | (1,746,630 | ) |
| Class B | | | (2,536 | ) | | | (353 | ) | | | — | | | | (42,502 | ) |
| Class C | | | (93,568 | ) | | | (12,255 | ) | | | — | | | | (203,409 | ) |
| Class I | | | (95 | ) | | | (13 | ) | | | — | | | | (725,836 | ) |
Class Q(1) | | | — | | | | — | | | | — | | | | (146,524 | ) |
| Class W | | | — | | | | — | | | | — | | | | (998 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (422,842 | ) | | | (77,255 | ) | | | — | | | | (2,865,899 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 1,323,386 | | | | 993,978 | | | | 44,411,913 | | | | 29,894,212 | |
| Payments by affiliates (Note 18) | | | — | | | | — | | | | — | | | | 1,400,280 | |
| Reinvestment of distributions | | | 39,745 | | | | 7,495 | | | | — | | | | 2,564,649 | |
| | | | | | | | | | | | | | | | | |
| | | | 1,363,131 | | | | 1,001,473 | | | | 44,411,913 | | | | 33,859,141 | |
| Cost of shares redeemed | | | (448,631 | ) | | | (3,771,209 | ) | | | (27,667,988 | ) | | | (40,483,488 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 914,500 | | | | (2,769,736 | ) | | | 16,743,925 | | | | (6,624,347 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 683,251 | | | | (2,257,909 | ) | | | 33,152,956 | | | | 35,309,793 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 4,437,278 | | | | 6,695,187 | | | | 137,998,489 | | | | 102,688,696 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 5,120,529 | | | $ | 4,437,278 | | | $ | 171,151,445 | | | $ | 137,998,489 | |
| | | | | | | | | | | | | | | | | |
| Undistributed (distributions in excess of/accumulated net investment loss) net investment income at end of period | | $ | (51,413 | ) | | $ | 337,370 | | | $ | (646,955 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Effective March 8, 2010, Class Q shareholders of ING Emerging Countries Fund were converted to Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
43
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING European Real Estate Fund | | ING Foreign Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 41,339 | | | $ | 78,704 | | | $ | 213,287 | | | $ | 2,433,639 | |
| Net realized gain (loss) | | | 26,047 | | | | (1,152,836 | ) | | | 23,374,278 | | | | (50,146,128 | ) |
| Net change in unrealized appreciation or depreciation | | | (319,931 | ) | | | 2,231,676 | | | | (12,008,077 | ) | | | 71,640,409 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (252,545 | ) | | | 1,157,544 | | | | 11,579,488 | | | | 23,927,920 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (361,187 | ) | | | (181,768 | ) | | | — | | | | (4,924,315 | ) |
| Class B | | | (8,490 | ) | | | (671 | ) | | | — | | | | (461,405 | ) |
| Class C | | | (5,321 | ) | | | (2,381 | ) | | | — | | | | (2,720,389 | ) |
| Class I | | | (1,078 | ) | | | (32 | ) | | | — | | | | (3,274,378 | ) |
Class Q(1) | | | — | | | | — | | | | — | | | | (675 | ) |
| Class W | | | — | | | | — | | | | — | | | | (13,885 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (376,076 | ) | | | (184,852 | ) | | | — | | | | (11,395,047 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 681,681 | | | | 2,521,942 | | | | 18,920,771 | | | | 45,668,879 | |
| Reinvestment of distributions | | | 85,399 | | | | 26,992 | | | | — | | | | 8,751,093 | |
| | | | | | | | | | | | | | | | | |
| | | | 767,080 | | | | 2,548,934 | | | | 18,920,771 | | | | 54,419,972 | |
| Cost of shares redeemed | | | (2,701,690 | ) | | | (240,480 | ) | | | (92,412,979 | ) | | | (157,258,780 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (1,934,610 | ) | | | 2,308,454 | | | | (73,492,208 | ) | | | (102,838,808 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (2,563,231 | ) | | | 3,281,146 | | | | (61,912,720 | ) | | | (90,305,935 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 6,496,764 | | | | 3,215,618 | | | | 250,427,873 | | | | 340,733,808 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 3,933,533 | | | $ | 6,496,764 | | | $ | 188,515,153 | | | $ | 250,427,873 | |
| | | | | | | | | | | | | | | | | |
| Undistributed (distributions in excess of) net investment income at end of period | | $ | (46,212 | ) | | $ | 288,525 | | | $ | 746,183 | | | $ | 532,896 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Effective November 20, 2009, Class Q shareholders of ING Foreign Fund were converted to Class W shares of the Fund. |
See Accompanying Notes to Financial Statements
44
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | | | ING Index Plus International
|
| | | ING Greater China Fund | | Equity Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (349,284 | ) | | $ | 150,182 | | | $ | 846,652 | | | $ | 2,711,738 | |
| Net realized gain (loss) | | | 1,851,502 | | | | (6,183,150 | ) | | | 3,759,500 | | | | (46,411,839 | ) |
| Net change in unrealized appreciation or depreciation | | | (385,517 | ) | | | 22,037,965 | | | | (978,769 | ) | | | 67,294,623 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 1,116,701 | | | | 16,004,997 | | | | 3,627,383 | | | | 23,594,522 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (505,842 | ) | | | (80,583 | ) | | | (169,055 | ) | | | (337,810 | ) |
| Class B | | | (27,496 | ) | | | (6,660 | ) | | | (11,703 | ) | | | (28,973 | ) |
| Class C | | | (72,678 | ) | | | (8,156 | ) | | | (16,513 | ) | | | (31,419 | ) |
| Class I | | | (13,770 | ) | | | (235 | ) | | | (1,026,008 | ) | | | (2,734,906 | ) |
| Class O | | | (55,597 | ) | | | (1,283 | ) | | | (889,985 | ) | | | (1,555,036 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (1,583,601 | ) | | | — | | | | — | |
| Class B | | | — | | | | (135,431 | ) | | | — | | | | — | |
| Class C | | | — | | | | (166,482 | ) | | | — | | | | — | |
| Class I | | | — | | | | (4,563 | ) | | | — | | | | — | |
| Class O | | | — | | | | (24,941 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (675,383 | ) | | | (2,011,935 | ) | | | (2,113,264 | ) | | | (4,688,144 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 11,572,008 | | | | 28,491,821 | | | | 8,453,386 | | | | 16,412,648 | |
| Payments by affiliates (Note 18) | | | — | | | | — | | | | — | | | | 497,810 | |
| Reinvestment of distributions | | | 550,516 | | | | 1,500,221 | | | | 1,254,275 | | | | 3,297,835 | |
| | | | | | | | | | | | | | | | | |
| | | | 12,122,524 | | | | 29,992,042 | | | | 9,707,661 | | | | 20,208,293 | |
| Cost of shares redeemed | | | (12,807,015 | ) | | | (23,362,569 | ) | | | (12,407,449 | ) | | | (37,853,048 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (684,491 | ) | | | 6,629,473 | | | | (2,699,788 | ) | | | (17,644,755 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (243,173 | ) | | | 20,622,535 | | | | (1,185,669 | ) | | | 1,261,623 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 45,943,135 | | | | 25,320,600 | | | | 109,966,437 | | | | 108,704,814 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 45,699,962 | | | $ | 45,943,135 | | | $ | 108,780,768 | | | $ | 109,966,437 | |
| | | | | | | | | | | | | | | | | |
| Undistributed (distributions in excess of) net investment income at end of period | | $ | (349,415 | ) | | $ | 675,252 | | | $ | 713,961 | | | $ | 1,980,573 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
45
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING International Capital Appreciation Fund | | ING International Real Estate Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 158,576 | | | $ | 534,798 | | | $ | 6,172,113 | | | $ | 11,398,195 | |
| Net realized gain (loss) | | | 3,037,778 | | | | (24,748,005 | ) | | | (17,270,451 | ) | | | (174,595,021 | ) |
| Net change in unrealized appreciation or depreciation | | | 4,367,873 | | | | 42,982,950 | | | | 15,463,449 | | | | 274,383,100 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 7,564,227 | | | | 18,769,743 | | | | 4,365,111 | | | | 111,186,274 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (27,773 | ) | | | (8,891,083 | ) | | | (1,805,423 | ) |
| Class B | | | — | | | | (2,107 | ) | | | (237,045 | ) | | | (56,721 | ) |
| Class C | | | — | | | | (645 | ) | | | (1,657,556 | ) | | | (397,980 | ) |
| Class I | | | — | | | | (1,471,342 | ) | | | (25,910,004 | ) | | | (8,854,996 | ) |
| Class W | | | — | | | | — | | | | (164,752 | ) | | | (22,546 | ) |
| Return of capital | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (1,123 | ) | | | — | | | | — | |
| Class B | | | — | | | | (174 | ) | | | — | | | | — | |
| Class C | | | — | | | | (277 | ) | | | — | | | | — | |
| Class I | | | — | | | | (34,524 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | — | | | | (1,537,965 | ) | | | (36,860,440 | ) | | | (11,137,666 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 11,184,017 | | | | 13,295,441 | | | | 136,474,140 | | | | 244,320,032 | |
| Proceeds from shares issued in merger (Note 14) | | | — | | | | 54,440,262 | | | | — | | | | — | |
| Reinvestment of distributions | | | — | | | | 1,520,985 | | | | 14,855,500 | | | | 4,243,297 | |
| | | | | | | | | | | | | | | | | |
| | | | 11,184,017 | | | | 69,256,688 | | | | 151,329,640 | | | | 248,563,329 | |
| Cost of shares redeemed | | | (27,490,423 | ) | | | (27,912,810 | ) | | | (126,111,503 | ) | | | (232,704,593 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (16,306,406 | ) | | | 41,343,878 | | | | 25,218,137 | | | | 15,858,736 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (8,742,179 | ) | | | 58,575,656 | | | | (7,277,192 | ) | | | 115,907,344 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 108,737,372 | | | | 50,161,716 | | | | 536,728,771 | | | | 420,821,427 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 99,995,193 | | | $ | 108,737,372 | | | $ | 529,451,579 | | | $ | 536,728,771 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 160,028 | | | $ | 1,452 | | | $ | 830,384 | | | $ | 31,518,711 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
46
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING International SmallCap
| | |
| | | Multi-Manager Fund | | ING International Value Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 698,218 | | | $ | 3,451,120 | | | $ | 11,515,560 | | | $ | 21,719,914 | |
| Net realized gain (loss) | | | 19,369,179 | | | | (201,552,375 | ) | | | (3,004,515 | ) | | | (789,089,768 | ) |
| Net change in unrealized appreciation or depreciation | | | 27,436,935 | | | | 321,977,593 | | | | 32,106,797 | | | | 1,071,761,382 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 47,504,332 | | | | 123,876,338 | | | | 40,617,842 | | | | 304,391,528 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (2,109,009 | ) | | | (4,710,212 | ) | | | (10,943,798 | ) | | | (29,625,296 | ) |
| Class B | | | (23,757 | ) | | | (75,770 | ) | | | (133,023 | ) | | | (1,344,909 | ) |
| Class C | | | (222,325 | ) | | | (548,565 | ) | | | (2,639,332 | ) | | | (7,248,733 | ) |
| Class I | | | (2,740,459 | ) | | | (4,347,655 | ) | | | (11,909,194 | ) | | | (27,711,835 | ) |
| Class O | | | (8,443 | ) | | | (3,592 | ) | | | — | | | | — | |
Class Q(1) | | | (284,494 | ) | | | (1,075,645 | ) | | | (415,057 | ) | | | (477,615 | ) |
| Class W | | | (262,738 | ) | | | (349,538 | ) | | | (75,790 | ) | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | (127,294,102 | ) |
| Class B | | | — | | | | — | | | | — | | | | (11,916,381 | ) |
| Class C | | | — | | | | — | | | | — | | | | (46,020,354 | ) |
| Class I | | | — | | | | — | | | | — | | | | (100,409,222 | ) |
Class Q(1) | | | — | | | | — | | | | — | | | | (1,708,325 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (5,651,225 | ) | | | (11,110,977 | ) | | | (26,116,194 | ) | | | (353,756,772 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 75,323,720 | | | | 113,096,459 | | | | 118,022,001 | | | | 392,893,693 | |
| Payments by affiliates (Note 18) | | | — | | | | 2,661,920 | | | | — | | | | 955,441 | |
| Reinvestment of distributions | | | 3,614,166 | | | | 7,610,077 | | | | 19,300,834 | | | | 252,944,813 | |
| | | | | | | | | | | | | | | | | |
| | | | 78,937,886 | | | | 123,368,456 | | | | 137,322,835 | | | | 646,793,947 | |
| Cost of shares redeemed | | | (102,766,130 | ) | | | (204,983,628 | ) | | | (310,536,908 | ) | | | (1,015,622,982 | ) |
| | | | | | | | | | | | | | | | | |
| Net decrease in net assets resulting from capital share transactions | | | (23,828,244 | ) | | | (81,615,172 | ) | | | (173,214,073 | ) | | | (368,829,035 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 18,024,863 | | | | 31,150,189 | | | | (158,712,425 | ) | | | (418,194,279 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 426,781,607 | | | | 395,631,418 | | | | 1,673,917,302 | | | | 2,092,111,581 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 444,806,470 | | | $ | 426,781,607 | | | $ | 1,515,204,877 | | | $ | 1,673,917,302 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 684,478 | | | $ | 5,637,485 | | | $ | 11,647,248 | | | $ | 26,247,882 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Effective November 20, 2009, Class Q shareholders of ING International SmallCap Multi-Manager Fund and ING International Value Fund were converted to Class W shares of each respective Fund. |
See Accompanying Notes to Financial Statements
47
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING International Value
| | |
| | | Choice Fund | | ING Russia Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 171,646 | | | $ | 450,516 | | | $ | (3,521,548 | ) | | $ | (2,451,035 | ) |
| Net realized gain (loss) | | | 922,214 | | | | (15,188,954 | ) | | | (28,249,782 | ) | | | (71,104,475 | ) |
| Net change in unrealized appreciation or depreciation | | | 2,788,344 | | | | 25,168,195 | | | | 109,599,080 | | | | 211,233,042 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 3,882,204 | | | | 10,429,757 | | | | 77,827,750 | | | | 137,677,532 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (131,060 | ) | | | (87,098 | ) | | | — | | | | — | |
| Class B | | | (1,702 | ) | | | (498 | ) | | | — | | | | — | |
| Class C | | | (4,059 | ) | | | (897 | ) | | | — | | | | — | |
| Class I | | | (227,476 | ) | | | (532,022 | ) | | | — | | | | — | |
| Class W | | | (27 | ) | | | — | | | | — | | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | — | | | | (82,435,965 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (364,324 | ) | | | (620,515 | ) | | | — | | | | (82,435,965 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 16,269,956 | | | | 14,285,055 | | | | 52,790,382 | | | | 64,172,973 | |
| Reinvestment of distributions | | | 350,219 | | | | 611,830 | | | | — | | | | 71,291,248 | |
| | | | | | | | | | | | | | | | | |
| | | | 16,620,175 | | | | 14,896,885 | | | | 52,790,382 | | | | 135,464,221 | |
| Redemption fee proceeds | | | — | | | | — | | | | 169,526 | | | | 262,776 | |
| Cost of shares redeemed | | | (12,422,900 | ) | | | (24,592,282 | ) | | | (51,577,214 | ) | | | (78,843,963 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 4,197,275 | | | | (9,695,397 | ) | | | 1,382,694 | | | | 56,883,034 | |
| | | | | | | | | | | | | | | | | |
| Net increase in net assets | | | 7,715,155 | | | | 113,845 | | | | 79,210,444 | | | | 112,124,601 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 49,148,094 | | | | 49,034,249 | | | | 373,251,970 | | | | 261,127,369 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 56,863,249 | | | $ | 49,148,094 | | | $ | 452,462,414 | | | $ | 373,251,970 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income (accumulated net investment loss) at end of period | | $ | 120,420 | | | $ | 313,098 | | | $ | (3,521,548 | ) | | $ | — | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
48
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Global Bond Fund | | ING Diversified International Fund |
| | | Six Months Ended
| | Year Ended
| | Six Months Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2010 | | 2009 | | 2010 | | 2009 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 9,099,794 | | | $ | 6,169,713 | | | $ | 1,496,938 | | | $ | 6,840,965 | |
| Net realized gain (loss) | | | (934,617 | ) | | | 7,334,843 | | | | (16,473,045 | ) | | | (111,148,949 | ) |
| Net change in unrealized appreciation or depreciation | | | (5,866,083 | ) | | | 27,036,801 | | | | 29,525,118 | | | | 153,259,480 | |
| | | | | | | | | | | | | | | | | |
| Increase in net assets resulting from operations | | | 2,299,094 | | | | 40,541,357 | | | | 14,549,011 | | | | 48,951,496 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (5,672,420 | ) | | | (1,002,341 | ) | | | (1,046,798 | ) | | | (16,890,294 | ) |
| Class B | | | (193,533 | ) | | | (48,083 | ) | | | (26,408 | ) | | | (2,007,249 | ) |
| Class C | | | (2,216,391 | ) | | | (369,590 | ) | | | (57,030 | ) | | | (7,933,560 | ) |
| Class I | | | (6,539,840 | ) | | | (2,185,382 | ) | | | (33,208 | ) | | | (585,985 | ) |
| Class O | | | (154,324 | ) | | | (39,407 | ) | | | (23,310 | ) | | | (33,579 | ) |
| Class R | | | — | | | | — | | | | (1,233 | ) | | | (21,054 | ) |
| Class W | | | (166,426 | ) | | | (6,692 | ) | | | (33,244 | ) | | | (182,219 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (516,361 | ) | | | (1,641,363 | ) | | | — | | | | — | |
| Class B | | | (18,877 | ) | | | (99,095 | ) | | | — | | | | — | |
| Class C | | | (213,755 | ) | | | (709,315 | ) | | | — | | | | — | |
| Class I | | | (548,181 | ) | | | (7,774 | ) | | | — | | | | — | |
| Class O | | | (14,374 | ) | | | (6,537 | ) | | | — | | | | — | |
| Class W | | | (13,604 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (16,268,086 | ) | | | (6,115,579 | ) | | | (1,221,231 | ) | | | (27,653,940 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 204,285,440 | | | | 230,053,379 | | | | 22,297,745 | | | | 36,087,099 | |
| Reinvestment of distributions | | | 13,600,033 | | | | 4,998,292 | | | | 996,905 | | | | 21,285,904 | |
| | | | | | | | | | | | | | | | | |
| | | | 217,885,473 | | | | 235,051,671 | | | | 23,294,650 | | | | 57,373,003 | |
| Cost of shares redeemed | | | (64,159,918 | ) | | | (87,745,529 | ) | | | (51,103,593 | ) | | | (117,220,417 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 153,725,555 | | | | 147,306,142 | | | | (27,808,943 | ) | | | (59,847,414 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 139,756,563 | | | | 181,731,920 | | | | (14,481,163 | ) | | | (38,549,858 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 295,001,444 | | | | 113,269,524 | | | | 229,578,725 | | | | 268,128,583 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 434,758,007 | | | $ | 295,001,444 | | | $ | 215,097,562 | | | $ | 229,578,725 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 1,280,891 | | | $ | 7,124,031 | | | $ | 275,707 | | | $ | — | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
49
FINANCIAL HIGHLIGHTS (Unaudited)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ING Global Equity Dividend Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .41 | | | | 0 | .12 | | | | 0 | .69 | | | | 0 | .81 | | | | 0 | .09 | | | | — | | | | | — | | | | | 0 | .09 | | | | — | | | | | — | | | | | 10 | .13 | | | | 8 | .63 | | | | 1 | .43 | | | | 1 | .40 | | | | 1 | .40 | | | | 2 | .38 | | | | 44,697 | | | | | 24 | | |
| 10-31-09 | | | 8 | .77 | | | | 0 | .26• | | | | 0 | .62 | | | | 0 | .88 | | | | 0 | .22 | | | | — | | | | | 0 | .02 | | | | 0 | .24 | | | | — | | | | | — | | | | | 9 | .41 | | | | 10 | .41 | | | | 1 | .54 | | | | 1 | .40 | | | | 1 | .40 | | | | 3 | .24 | | | | 46,871 | | | | | 93 | | |
| 10-31-08 | | | 16 | .84 | | | | 0 | .56 | | | | (6 | .84) | | | | (6 | .28) | | | | 0 | .54 | | | | 1 | .20 | | | | 0 | .05 | | | | 1 | .79 | | | | — | | | | | — | | | | | 8 | .77 | | | | (40 | .84) | | | | 1 | .42 | | | | 1 | .41 | | | | 1 | .41 | | | | 3 | .85 | | | | 63,134 | | | | | 46 | | |
| 10-31-07 | | | 15 | .76 | | | | 0 | .54• | | | | 1 | .84 | | | | 2 | .38 | | | | 0 | .55 | | | | 0 | .75 | | | | — | | | | | 1 | .30 | | | | — | | | | | — | | | | | 16 | .84 | | | | 15 | .80 | | | | 1 | .26 | | | | 1 | .26 | | | | 1 | .26 | | | | 3 | .31 | | | | 182,669 | | | | | 36 | | |
| 10-31-06 | | | 13 | .07 | | | | 0 | .54 | | | | 2 | .85 | | | | 3 | .39 | | | | 0 | .51 | | | | 0 | .19 | | | | — | | | | | 0 | .70 | | | | — | | | | | — | | | | | 15 | .76 | | | | 26 | .56 | | | | 1 | .27 | | | | 1 | .33 | | | | 1 | .33 | | | | 3 | .76 | | | | 108,911 | | | | | 50 | | |
| 10-31-05 | | | 12 | .41 | | | | 0 | .47• | | | | 0 | .92 | | | | 1 | .39 | | | | 0 | .54 | | | | 0 | .19 | | | | — | | | | | 0 | .73 | | | | — | | | | | — | | | | | 13 | .07 | | | | 11 | .45 | | | | 1 | .28 | | | | 1 | .40 | | | | 1 | .40 | | | | 3 | .60 | | | | 73,186 | | | | | 57 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .38 | | | | 0 | .08 | | | | 0 | .70 | | | | 0 | .78 | | | | 0 | .05 | | | | — | | | | | — | | | | | 0 | .05 | | | | — | | | | | — | | | | | 10 | .11 | | | | 8 | .35 | | | | 2 | .18 | | | | 2 | .15 | | | | 2 | .15 | | | | 1 | .61 | | | | 13,970 | | | | | 24 | | |
| 10-31-09 | | | 8 | .74 | | | | 0 | .21 | | | | 0 | .61 | | | | 0 | .82 | | | | 0 | .16 | | | | — | | | | | 0 | .02 | | | | 0 | .18 | | | | — | | | | | — | | | | | 9 | .38 | | | | 9 | .60 | | | | 2 | .29 | | | | 2 | .15 | | | | 2 | .15 | | | | 2 | .48 | | | | 16,147 | | | | | 93 | | |
| 10-31-08 | | | 16 | .79 | | | | 0 | .46 | | | | (6 | .82) | | | | (6 | .36) | | | | 0 | .44 | | | | 1 | .20 | | | | 0 | .05 | | | | 1 | .69 | | | | — | | | | | — | | | | | 8 | .74 | | | | (41 | .32) | | | | 2 | .17 | | | | 2 | .16 | | | | 2 | .16 | | | | 3 | .11 | | | | 21,311 | | | | | 46 | | |
| 10-31-07 | | | 15 | .72 | | | | 0 | .39 | | | | 1 | .86 | | | | 2 | .25 | | | | 0 | .43 | | | | 0 | .75 | | | | — | | | | | 1 | .18 | | | | — | | | | | — | | | | | 16 | .79 | | | | 14 | .94 | | | | 2 | .01 | | | | 2 | .01 | | | | 2 | .01 | | | | 2 | .53 | | | | 58,093 | | | | | 36 | | |
| 10-31-06 | | | 13 | .05 | | | | 0 | .43 | | | | 2 | .84 | | | | 3 | .27 | | | | 0 | .41 | | | | 0 | .19 | | | | — | | | | | 0 | .60 | | | | — | | | | | — | | | | | 15 | .72 | | | | 25 | .55 | | | | 2 | .02 | | | | 2 | .08 | | | | 2 | .08 | | | | 3 | .05 | | | | 44,936 | | | | | 50 | | |
| 10-31-05 | | | 12 | .37 | | | | 0 | .37• | | | | 0 | .92 | | | | 1 | .29 | | | | 0 | .42 | | | | 0 | .19 | | | | — | | | | | 0 | .61 | | | | — | | | | | — | | | | | 13 | .05 | | | | 10 | .65 | | | | 2 | .03 | | | | 2 | .15 | | | | 2 | .15 | | | | 2 | .83 | | | | 28,811 | | | | | 57 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .36 | | | | 0 | .08 | | | | 0 | .69 | | | | 0 | .77 | | | | 0 | .05 | | | | — | | | | | — | | | | | 0 | .05 | | | | — | | | | | — | | | | | 10 | .08 | | | | 8 | .27 | | | | 2 | .18 | | | | 2 | .15 | | | | 2 | .15 | | | | 1 | .63 | | | | 34,478 | | | | | 24 | | |
| 10-31-09 | | | 8 | .72 | | | | 0 | .21 | | | | 0 | .61 | | | | 0 | .82 | | | | 0 | .16 | | | | — | | | | | 0 | .02 | | | | 0 | .18 | | | | — | | | | | — | | | | | 9 | .36 | | | | 9 | .63 | | | | 2 | .29 | | | | 2 | .15 | | | | 2 | .15 | | | | 2 | .48 | | | | 37,687 | | | | | 93 | | |
| 10-31-08 | | | 16 | .75 | | | | 0 | .44 | | | | (6 | .78) | | | | (6 | .34) | | | | 0 | .44 | | | | 1 | .20 | | | | 0 | .05 | | | | 1 | .69 | | | | — | | | | | — | | | | | 8 | .72 | | | | (41 | .29) | | | | 2 | .17 | | | | 2 | .16 | | | | 2 | .16 | | | | 3 | .13 | | | | 48,567 | | | | | 46 | | |
| 10-31-07 | | | 15 | .69 | | | | 0 | .39 | | | | 1 | .86 | | | | 2 | .25 | | | | 0 | .44 | | | | 0 | .75 | | | | — | | | | | 1 | .19 | | | | — | | | | | — | | | | | 16 | .75 | | | | 14 | .94 | | | | 2 | .01 | | | | 2 | .01 | | | | 2 | .01 | | | | 2 | .54 | | | | 124,765 | | | | | 36 | | |
| 10-31-06 | | | 13 | .02 | | | | 0 | .43 | | | | 2 | .84 | | | | 3 | .27 | | | | 0 | .41 | | | | 0 | .19 | | | | — | | | | | 0 | .60 | | | | — | | | | | — | | | | | 15 | .69 | | | | 25 | .62 | | | | 2 | .02 | | | | 2 | .08 | | | | 2 | .08 | | | | 3 | .03 | | | | 77,426 | | | | | 50 | | |
| 10-31-05 | | | 12 | .37 | | | | 0 | .37• | | | | 0 | .90 | | | | 1 | .27 | | | | 0 | .43 | | | | 0 | .19 | | | | — | | | | | 0 | .62 | | | | — | | | | | — | | | | | 13 | .02 | | | | 10 | .51 | | | | 2 | .03 | | | | 2 | .15 | | | | 2 | .15 | | | | 2 | .82 | | | | 48,965 | | | | | 57 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .42 | | | | 0 | .14 | | | | 0 | .69 | | | | 0 | .83 | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 10 | .14 | | | | 8 | .86 | | | | 1 | .05 | | | | 1 | .02 | | | | 1 | .02 | | | | 2 | .93 | | | | 4,678 | | | | | 24 | | |
| 10-31-09 | | | 8 | .78 | | | | 0 | .29• | | | | 0 | .63 | | | | 0 | .92 | | | | 0 | .26 | | | | — | | | | | 0 | .02 | | | | 0 | .28 | | | | — | | | | | — | | | | | 9 | .42 | | | | 10 | .92 | | | | 1 | .07 | | | | 0 | .93 | | | | 0 | .93 | | | | 3 | .61 | | | | 1,824 | | | | | 93 | | |
| 10-31-08 | | | 16 | .83 | | | | 0 | .47 | | | | (6 | .68) | | | | (6 | .21) | | | | 0 | .59 | | | | 1 | .20 | | | | 0 | .05 | | | | 1 | .84 | | | | — | | | | | — | | | | | 8 | .78 | | | | (40 | .49) | | | | 1 | .07 | | | | 1 | .06 | | | | 1 | .06 | | | | 3 | .16 | | | | 1,207 | | | | | 46 | | |
08-01-07(4)–10-31-07 | | | 15 | .81 | | | | 0 | .12• | | | | 1 | .03 | | | | 1 | .15 | | | | 0 | .13 | | | | — | | | | | — | | | | | 0 | .13 | | | | — | | | | | — | | | | | 16 | .83 | | | | 7 | .26 | | | | 0 | .90 | | | | 0 | .90 | | | | 0 | .90 | | | | 2 | .98 | | | | 1 | | | | | 36 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .40 | | | | 0 | .12 | | | | 0 | .70 | | | | 0 | .82 | | | | 0 | .10 | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | — | | | | | 10 | .12 | | | | 8 | .68 | | | | 1 | .43 | | | | 1 | .40 | | | | 1 | .40 | | | | 2 | .39 | | | | 15,091 | | | | | 24 | | |
| 10-31-09 | | | 8 | .76 | | | | 0 | .26• | | | | 0 | .62 | | | | 0 | .88 | | | | 0 | .22 | | | | — | | | | | 0 | .02 | | | | 0 | .24 | | | | — | | | | | — | | | | | 9 | .40 | | | | 10 | .41 | | | | 1 | .54 | | | | 1 | .40 | | | | 1 | .40 | | | | 3 | .18 | | | | 14,920 | | | | | 93 | | |
| 10-31-08 | | | 16 | .83 | | | | 0 | .51• | | | | (6 | .78) | | | | (6 | .27) | | | | 0 | .55 | | | | 1 | .20 | | | | 0 | .05 | | | | 1 | .80 | | | | — | | | | | — | | | | | 8 | .76 | | | | (40 | .83) | | | | 1 | .42 | | | | 1 | .41 | | | | 1 | .41 | | | | 3 | .95 | | | | 14,695 | | | | | 46 | | |
11-15-06(4)–10-31-07 | | | 15 | .86 | | | | 0 | .55• | | | | 1 | .74 | | | | 2 | .29 | | | | 0 | .57 | | | | 0 | .75 | | | | — | | | | | 1 | .32 | | | | — | | | | | — | | | | | 16 | .83 | | | | 15 | .12 | | | | 1 | .26 | | | | 1 | .26 | | | | 1 | .26 | | | | 3 | .46 | | | | 23,737 | | | | | 36 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 10 | .25 | | | | 0 | .14 | | | | 0 | .77 | | | | 0 | .91 | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 11 | .05 | | | | 8 | .85 | | | | 1 | .18 | | | | 1 | .15 | | | | 1 | .15 | | | | 2 | .70 | | | | 29,766 | | | | | 24 | | |
| 10-31-09 | | | 9 | .53 | | | | 0 | .26• | | | | 0 | .74 | | | | 1 | .00 | | | | 0 | .26 | | | | — | | | | | 0 | .02 | | | | 0 | .28 | | | | — | | | | | — | | | | | 10 | .25 | | | | 10 | .92 | | | | 1 | .07 | | | | 0 | .93 | | | | 0 | .93 | | | | 2 | .68 | | | | 21,321 | | | | | 93 | | |
02-12-08(4)–10-31-08 | | | 14 | .51 | | | | 0 | .35 | | | | (4 | .83) | | | | (4 | .48) | | | | 0 | .46 | | | | — | | | | | 0 | .04 | | | | 0 | .50 | | | | — | | | | | — | | | | | 9 | .53 | | | | (31 | .78) | | | | 1 | .07 | | | | 1 | .06 | | | | 1 | .06 | | | | 3 | .38 | | | | 70 | | | | | 46 | | |
| |
ING Global Natural Resources Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .82 | | | | (0 | .01) | | | | 0 | .98 | | | | 0 | .97 | | | | 0 | .02 | | | | — | | | | | — | | | | | 0 | .02 | | | | — | | | | | — | | | | | 8 | .77 | | | | 12 | .47 | | | | 1 | .53 | | | | 1 | .53† | | | | 1 | .53† | | | | (0 | .14)† | | | | 106,143 | | | | | 36 | | |
| 10-31-09 | | | 6 | .74 | | | | 0 | .03 | | | | 1 | .50 | | | | 1 | .53 | | | | 0 | .02 | | | | 0 | .43 | | | | — | | | | | 0 | .45 | | | | — | | | | | — | | | | | 7 | .82 | | | | 24 | .38 | | | | 1 | .64 | | | | 1 | .64† | | | | 1 | .64† | | | | 0 | .45† | | | | 99,674 | | | | | 81 | | |
| 10-31-08 | | | 14 | .18 | | | | 0 | .05 | | | | (4 | .92) | | | | (4 | .87) | | | | 0 | .11 | | | | 2 | .46 | | | | — | | | | | 2 | .57 | | | | — | | | | | — | | | | | 6 | .74 | | | | (41 | .12) | | | | 1 | .46 | | | | 1 | .46† | | | | 1 | .46† | | | | 0 | .37† | | | | 83,713 | | | | | 116 | | |
| 10-31-07 | | | 10 | .46 | | | | (0 | .03) | | | | 4 | .36 | | | | 4 | .33 | | | | 0 | .26 | | | | 0 | .35 | | | | — | | | | | 0 | .61 | | | | — | | | | | — | | | | | 14 | .18 | | | | 43 | .22 | | | | 1 | .44 | | | | 1 | .44† | | | | 1 | .44† | | | | (0 | .28)† | | | | 157,367 | | | | | 121 | | |
| 10-31-06 | | | 7 | .34 | | | | (0 | .06) | | | | 3 | .20 | | | | 3 | .14 | | | | 0 | .02 | | | | — | | | | | — | | | | | 0 | .02 | | | | — | | | | | — | | | | | 10 | .46 | | | | 42 | .76 | | | | 1 | .42 | | | | 1 | .42 | | | | 1 | .42 | | | | (0 | .61) | | | | 121,112 | | | | | 158 | | |
| 10-31-05 | | | 7 | .09 | | | | (0 | .06) | | | | 0 | .54 | | | | 0 | .48 | | | | 0 | .23 | | | | — | | | | | — | | | | | 0 | .23 | | | | — | | | | | — | | | | | 7 | .34 | | | | 6 | .81 | | | | 1 | .56 | | | | 1 | .56 | | | | 1 | .56 | | | | (0 | .77) | | | | 87,441 | | | | | 78 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .83 | | | | 0 | .00•,* | | | | 0 | .99 | | | | 0 | .99 | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 8 | .76 | | | | 12 | .65 | | | | 1 | .12 | | | | 1 | .12† | | | | 1 | .12† | | | | 0 | .00*,† | | | | 4,031 | | | | | 36 | | |
| 10-31-09 | | | 6 | .75 | | | | 0 | .05• | | | | 1 | .52 | | | | 1 | .57 | | | | 0 | .06 | | | | 0 | .43 | | | | — | | | | | 0 | .49 | | | | — | | | | | — | | | | | 7 | .83 | | | | 25 | .10 | | | | 1 | .19 | | | | 1 | .19† | | | | 1 | .19† | | | | 0 | .68† | | | | 510 | | | | | 81 | | |
| 10-31-08 | | | 14 | .19 | | | | 0 | .12• | | | | (4 | .95) | | | | (4 | .83) | | | | 0 | .15 | | | | 2 | .46 | | | | — | | | | | 2 | .61 | | | | — | | | | | — | | | | | 6 | .75 | | | | (40 | .87) | | | | 1 | .11 | | | | 1 | .11† | | | | 1 | .11† | | | | 1 | .04† | | | | 1 | | | | | 116 | | |
08-01-07(4)–10-31-07 | | | 12 | .07 | | | | 0 | .00* | | | | 2 | .12 | | | | 2 | .12 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | .19 | | | | 17 | .56 | | | | 1 | .08 | | | | 1 | .08† | | | | 1 | .08† | | | | 0 | .09† | | | | 2 | | | | | 121 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
50
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Global Natural Resources Fund (continued) |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .86 | | | | 0 | .00•,* | | | | 1 | .23 | | | | 1 | .23 | | | | 0 | .05 | | | | — | | | | | — | | | | | 0 | .05 | | | | — | | | | | — | | | | | 11 | .04 | | | | 12 | .56 | | | | 1 | .28 | | | | 1 | .28† | | | | 1 | .28† | | | | 0 | .01† | | | | 297 | | | | | 36 | | |
| 10-31-09 | | | 8 | .39 | | | | 0 | .05• | | | | 1 | .91 | | | | 1 | .96 | | | | 0 | .06 | | | | 0 | .43 | | | | — | | | | | 0 | .49 | | | | — | | | | | — | | | | | 9 | .86 | | | | 24 | .84 | | | | 1 | .19 | | | | 1 | .19† | | | | 1 | .19† | | | | 0 | .64† | | | | 186 | | | | | 81 | | |
02-12-08(4)–10-31-08 | | | 12 | .84 | | | | 0 | .03• | | | | (4 | .48) | | | | (4 | .45) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 8 | .39 | | | | (34 | .66) | | | | 1 | .11 | | | | 1 | .11† | | | | 1 | .11† | | | | 0 | .38† | | | | 27 | | | | | 116 | | |
ING Global Real Estate Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .26 | | | | 0 | .15 | | | | 1 | .46 | | | | 1 | .61 | | | | 0 | .66 | | | | — | | | | | — | | | | | 0 | .66 | | | | — | | | | | — | | | | | 15 | .21 | | | | 11 | .47 | | | | 1 | .39 | | | | 1 | .39† | | | | 1 | .39† | | | | 2 | .01† | | | | 1,004,722 | | | | | 33 | | |
| 10-31-09 | | | 12 | .56 | | | | 0 | .32• | | | | 1 | .75 | | | | 2 | .07 | | | | 0 | .27 | | | | 0 | .01 | | | | 0 | .09 | | | | 0 | .37 | | | | — | | | | | — | | | | | 14 | .26 | | | | 17 | .37 | | | | 1 | .49 | | | | 1 | .49† | | | | 1 | .49† | | | | 2 | .74† | | | | 893,470 | | | | | 66 | | |
| 10-31-08 | | | 24 | .19 | | | | 0 | .33• | | | | (11 | .19) | | | | (10 | .86) | | | | 0 | .73 | | | | 0 | .04 | | | | — | | | | | 0 | .77 | | | | — | | | | | — | | | | | 12 | .56 | | | | (46 | .00) | | | | 1 | .41 | | | | 1 | .41† | | | | 1 | .41† | | | | 1 | .76† | | | | 836,314 | | | | | 44 | | |
| 10-31-07 | | | 22 | .23 | | | | 0 | .22• | | | | 3 | .13 | | | | 3 | .35 | | | | 1 | .08 | | | | 0 | .31 | | | | — | | | | | 1 | .39 | | | | — | | | | | — | | | | | 24 | .19 | | | | 15 | .44 | | | | 1 | .30 | | | | 1 | .30 | | | | 1 | .30 | | | | 0 | .96 | | | | 1,115,493 | | | | | 57 | | |
| 10-31-06 | | | 17 | .14 | | | | 0 | .20• | | | | 6 | .41 | | | | 6 | .61 | | | | 0 | .46 | | | | 1 | .06 | | | | — | | | | | 1 | .52 | | | | — | | | | | — | | | | | 22 | .23 | | | | 41 | .09 | | | | 1 | .39 | | | | 1 | .39 | | | | 1 | .39 | | | | 1 | .04 | | | | 467,405 | | | | | 39 | | |
| 10-31-05 | | | 15 | .40 | | | | 0 | .26•(b) | | | | 2 | .94(b) | | | | 3 | .20 | | | | 0 | .54 | | | | 0 | .92 | | | | — | | | | | 1 | .46 | | | | — | | | | | — | | | | | 17 | .14 | | | | 21 | .95 | | | | 1 | .50 | | | | 1 | .59 | | | | 1 | .59 | | | | 1 | .58(b) | | | | 138,314 | | | | | 91 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .01 | | | | 0 | .08• | | | | 1 | .23 | | | | 1 | .31 | | | | 0 | .62 | | | | — | | | | | — | | | | | 0 | .62 | | | | — | | | | | — | | | | | 12 | .70 | | | | 11 | .08 | | | | 2 | .14 | | | | 2 | .14† | | | | 2 | .14† | | | | 1 | .26† | | | | 22,325 | | | | | 33 | | |
| 10-31-09 | | | 10 | .66 | | | | 0 | .20• | | | | 1 | .46 | | | | 1 | .66 | | | | 0 | .22 | | | | 0 | .01 | | | | 0 | .08 | | | | 0 | .31 | | | | — | | | | | — | | | | | 12 | .01 | | | | 16 | .39 | | | | 2 | .24 | | | | 2 | .24† | | | | 2 | .24† | | | | 2 | .06† | | | | 22,218 | | | | | 66 | | |
| 10-31-08 | | | 20 | .67 | | | | 0 | .16• | | | | (9 | .52) | | | | (9 | .36) | | | | 0 | .61 | | | | 0 | .04 | | | | — | | | | | 0 | .65 | | | | — | | | | | — | | | | | 10 | .66 | | | | (46 | .40) | | | | 2 | .16 | | | | 2 | .16† | | | | 2 | .16† | | | | 0 | .99† | | | | 23,663 | | | | | 44 | | |
| 10-31-07 | | | 19 | .20 | | | | 0 | .04• | | | | 2 | .69 | | | | 2 | .73 | | | | 0 | .95 | | | | 0 | .31 | | | | — | | | | | 1 | .26 | | | | — | | | | | — | | | | | 20 | .67 | | | | 14 | .59 | | | | 2 | .05 | | | | 2 | .05 | | | | 2 | .05 | | | | 0 | .22 | | | | 57,837 | | | | | 57 | | |
| 10-31-06 | | | 15 | .01 | | | | 0 | .05• | | | | 5 | .56 | | | | 5 | .61 | | | | 0 | .36 | | | | 1 | .06 | | | | — | | | | | 1 | .42 | | | | — | | | | | — | | | | | 19 | .20 | | | | 40 | .04 | | | | 2 | .14 | | | | 2 | .14 | | | | 2 | .14 | | | | 0 | .31 | | | | 31,677 | | | | | 39 | | |
| 10-31-05 | | | 13 | .67 | | | | 0 | .12•(b) | | | | 2 | .59(b) | | | | 2 | .71 | | | | 0 | .45 | | | | 0 | .92 | | | | — | | | | | 1 | .37 | | | | — | | | | | — | | | | | 15 | .01 | | | | 21 | .05 | | | | 2 | .25 | | | | 2 | .34 | | | | 2 | .34 | | | | 0 | .79(b) | | | | 12,302 | | | | | 91 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .67 | | | | 0 | .08• | | | | 1 | .31 | | | | 1 | .39 | | | | 0 | .62 | | | | — | | | | | — | | | | | 0 | .62 | | | | — | | | | | — | | | | | 13 | .44 | | | | 11 | .13 | | | | 2 | .14 | | | | 2 | .14† | | | | 2 | .14† | | | | 1 | .26† | | | | 181,541 | | | | | 33 | | |
| 10-31-09 | | | 11 | .22 | | | | 0 | .21• | | | | 1 | .54 | | | | 1 | .75 | | | | 0 | .22 | | | | 0 | .01 | | | | 0 | .07 | | | | 0 | .30 | | | | — | | | | | — | | | | | 12 | .67 | | | | 16 | .40 | | | | 2 | .24 | | | | 2 | .24† | | | | 2 | .24† | | | | 2 | .03† | | | | 149,943 | | | | | 66 | | |
| 10-31-08 | | | 21 | .70 | | | | 0 | .16 | | | | (9 | .99) | | | | (9 | .83) | | | | 0 | .61 | | | | 0 | .04 | | | | — | | | | | 0 | .65 | | | | — | | | | | — | | | | | 11 | .22 | | | | (46 | .38) | | | | 2 | .16 | | | | 2 | .16† | | | | 2 | .16† | | | | 0 | .99† | | | | 153,110 | | | | | 44 | | |
| 10-31-07 | | | 20 | .10 | | | | 0 | .04• | | | | 2 | .82 | | | | 2 | .86 | | | | 0 | .95 | | | | 0 | .31 | | | | — | | | | | 1 | .26 | | | | — | | | | | — | | | | | 21 | .70 | | | | 14 | .57 | | | | 2 | .05 | | | | 2 | .05 | | | | 2 | .05 | | | | 0 | .20 | | | | 303,235 | | | | | 57 | | |
| 10-31-06 | | | 15 | .65 | | | | 0 | .05• | | | | 5 | .82 | | | | 5 | .87 | | | | 0 | .36 | | | | 1 | .06 | | | | — | | | | | 1 | .42 | | | | — | | | | | — | | | | | 20 | .10 | | | | 40 | .06 | | | | 2 | .14 | | | | 2 | .14 | | | | 2 | .14 | | | | 0 | .29 | | | | 109,197 | | | | | 39 | | |
| 10-31-05 | | | 14 | .19 | | | | 0 | .12•(b) | | | | 2 | .71(b) | | | | 2 | .83 | | | | 0 | .45 | | | | 0 | .92 | | | | — | | | | | 1 | .37 | | | | — | | | | | — | | | | | 15 | .65 | | | | 21 | .11 | | | | 2 | .25 | | | | 2 | .34 | | | | 2 | .34 | | | | 0 | .78(b) | | | | 27,989 | | | | | 91 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .26 | | | | 0 | .17• | | | | 1 | .47 | | | | 1 | .64 | | | | 0 | .69 | | | | — | | | | | — | | | | | 0 | .69 | | | | — | | | | | — | | | | | 15 | .21 | | | | 11 | .66 | | | | 0 | .99 | | | | 0 | .99† | | | | 0 | .99† | | | | 2 | .41† | | | | 864,831 | | | | | 33 | | |
| 10-31-09 | | | 12 | .57 | | | | 0 | .35• | | | | 1 | .76 | | | | 2 | .11 | | | | 0 | .30 | | | | 0 | .01 | | | | 0 | .11 | | | | 0 | .42 | | | | — | | | | | — | | | | | 14 | .26 | | | | 17 | .76 | | | | 1 | .12 | | | | 1 | .12† | | | | 1 | .12† | | | | 2 | .96† | | | | 457,742 | | | | | 66 | | |
| 10-31-08 | | | 24 | .21 | | | | 0 | .38• | | | | (11 | .17) | | | | (10 | .79) | | | | 0 | .81 | | | | 0 | .04 | | | | — | | | | | 0 | .85 | | | | — | | | | | — | | | | | 12 | .57 | | | | (45 | .77) | | | | 1 | .01 | | | | 1 | .01† | | | | 1 | .01† | | | | 2 | .12† | | | | 225,881 | | | | | 44 | | |
| 10-31-07 | | | 22 | .23 | | | | 0 | .28• | | | | 3 | .16 | | | | 3 | .44 | | | | 1 | .15 | | | | 0 | .31 | | | | — | | | | | 1 | .46 | | | | — | | | | | — | | | | | 24 | .21 | | | | 15 | .88 | | | | 0 | .95 | | | | 0 | .95 | | | | 0 | .95 | | | | 1 | .24 | | | | 76,869 | | | | | 57 | | |
| 10-31-06 | | | 17 | .14 | | | | 0 | .28• | | | | 6 | .39 | | | | 6 | .67 | | | | 0 | .52 | | | | 1 | .06 | | | | — | | | | | 1 | .58 | | | | — | | | | | — | | | | | 22 | .23 | | | | 41 | .49 | | | | 1 | .06 | | | | 1 | .06 | | | | 1 | .06 | | | | 1 | .40 | | | | 11,226 | | | | | 39 | | |
06-03-05(4)–10-31-05 | | | 16 | .32 | | | | 0 | .14•(b) | | | | 0 | .86(b) | | | | 1 | .00 | | | | 0 | .18 | | | | — | | | | | — | | | | | 0 | .18 | | | | — | | | | | — | | | | | 17 | .14 | | | | 6 | .14 | | | | 1 | .22 | | | | 1 | .30 | | | | 1 | .30 | | | | 0 | .85(b) | | | | 1,681 | | | | | 91 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .26 | | | | 0 | .15• | | | | 1 | .46 | | | | 1 | .61 | | | | 0 | .66 | | | | — | | | | | — | | | | | 0 | .66 | | | | — | | | | | — | | | | | 15 | .21 | | | | 11 | .47 | | | | 1 | .39 | | | | 1 | .39† | | | | 1 | .39† | | | | 2 | .01† | | | | 14,466 | | | | | 33 | | |
| 10-31-09 | | | 12 | .55 | | | | 0 | .32• | | | | 1 | .76 | | | | 2 | .08 | | | | 0 | .27 | | | | 0 | .01 | | | | 0 | .09 | | | | 0 | .37 | | | | — | | | | | — | | | | | 14 | .26 | | | | 17 | .38 | | | | 1 | .49 | | | | 1 | .49† | | | | 1 | .49† | | | | 2 | .76† | | | | 13,575 | | | | | 66 | | |
| 10-31-08 | | | 24 | .19 | | | | 0 | .33• | | | | (11 | .19) | | | | (10 | .86) | | | | 0 | .74 | | | | 0 | .04 | | | | — | | | | | 0 | .78 | | | | — | | | | | — | | | | | 12 | .55 | | | | (46 | .03) | | | | 1 | .41 | | | | 1 | .41† | | | | 1 | .41† | | | | 1 | .74† | | | | 12,758 | | | | | 44 | | |
11-15-06(4)–10-31-07 | | | 22 | .20 | | | | 0 | .20• | | | | 3 | .20 | | | | 3 | .40 | | | | 1 | .10 | | | | 0 | .31 | | | | — | | | | | 1 | .41 | | | | — | | | | | — | | | | | 24 | .19 | | | | 15 | .68 | | | | 1 | .30 | | | | 1 | .30 | | | | 1 | .30 | | | | 0 | .90 | | | | 26,137 | | | | | 57 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .28 | | | | 0 | .17• | | | | 1 | .47 | | | | 1 | .64 | | | | 0 | .68 | | | | — | | | | | — | | | | | 0 | .68 | | | | — | | | | | — | | | | | 15 | .24 | | | | 11 | .65 | | | | 1 | .14 | | | | 1 | .14† | | | | 1 | .14† | | | | 2 | .27† | | | | 214,174 | | | | | 33 | | |
| 10-31-09 | | | 12 | .59 | | | | 0 | .34• | | | | 1 | .78 | | | | 2 | .12 | | | | 0 | .31 | | | | 0 | .01 | | | | 0 | .11 | | | | 0 | .43 | | | | — | | | | | — | | | | | 14 | .28 | | | | 17 | .78 | | | | 1 | .12 | | | | 1 | .12† | | | | 1 | .12† | | | | 2 | .88† | | | | 151,558 | | | | | 66 | | |
02-12-08(4)–10-31-08 | | | 19 | .29 | | | | 0 | .28 | | | | (6 | .65) | | | | (6 | .37) | | | | 0 | .33 | | | | — | | | | | — | | | | | 0 | .33 | | | | — | | | | | — | | | | | 12 | .59 | | | | (33 | .53) | | | | 1 | .01 | | | | 1 | .01† | | | | 1 | .01† | | | | 1 | .95† | | | | 50,233 | | | | | 44 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
51
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Global Value Choice Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 26 | .25 | | | | 0 | .01 | | | | 3 | .58 | | | | 3 | .59 | | | | 0 | .17 | | | | — | | | | | — | | | | | 0 | .17 | | | | — | | | | | — | | | | | 29 | .67 | | | | 13 | .70 | | | | 1 | .52 | | | | 1 | .50† | | | | 1 | .50† | | | | 0 | .15† | | | | 159,159 | | | | | 21 | | |
| 10-31-09 | | | 16 | .84 | | | | 0 | .12• | | | | 9 | .29 | | | | 9 | .41 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .25 | | | | 55 | .88 | | | | 1 | .58 | | | | 1 | .50† | | | | 1 | .49† | | | | 0 | .56† | | | | 107,499 | | | | | 81 | | |
| 10-31-08 | | | 28 | .40 | | | | 0 | .11 | | | | (11 | .51) | | | | (11 | .40) | | | | 0 | .16 | | | | — | | | | | — | | | | | 0 | .16 | | | | — | | | | | — | | | | | 16 | .84 | | | | (40 | .34) | | | | 1 | .62 | | | | 1 | .55† | | | | 1 | .53† | | | | 0 | .41† | | | | 38,258 | | | | | 73 | | |
| 10-31-07 | | | 21 | .72 | | | | 0 | .01 | | | | 6 | .67 | | | | 6 | .68 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 28 | .40 | | | | 30 | .76 | | | | 1 | .77 | | | | 1 | .82 | | | | 1 | .81 | | | | 0 | .04 | | | | 58,600 | | | | | 66 | | |
| 10-31-06 | | | 18 | .16 | | | | 0 | .08 | | | | 3 | .62 | | | | 3 | .70 | | | | 0 | .14 | | | | — | | | | | — | | | | | 0 | .14 | | | | — | | | | | — | | | | | 21 | .72 | | | | 20 | .48 | | | | 1 | .78 | | | | 1 | .78 | | | | 1 | .77 | | | | 0 | .40 | | | | 47,305 | | | | | 77 | | |
| 10-31-05 | | | 15 | .96 | | | | 0 | .09 | | | | 2 | .11 | | | | 2 | .20 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .00* | | | | — | | | | | 18 | .16 | | | | 13 | .78(a) | | | | 1 | .90 | | | | 1 | .85 | | | | 1 | .85 | | | | 0 | .46 | | | | 41,941 | | | | | 129 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 28 | .00 | | | | (0 | .11) | | | | 3 | .83 | | | | 3 | .72 | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 31 | .65 | | | | 13 | .30 | | | | 2 | .27 | | | | 2 | .25† | | | | 2 | .25† | | | | (0 | .71)† | | | | 8,139 | | | | | 21 | | |
| 10-31-09 | | | 18 | .10 | | | | (0 | .05) | | | | 9 | .95 | | | | 9 | .90 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 28 | .00 | | | | 54 | .70 | | | | 2 | .33 | | | | 2 | .25† | | | | 2 | .24† | | | | (0 | .19)† | | | | 7,105 | | | | | 81 | | |
| 10-31-08 | | | 30 | .58 | | | | (0 | .11)• | | | | (12 | .37) | | | | (12 | .48) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 18 | .10 | | | | (40 | .81) | | | | 2 | .37 | | | | 2 | .30† | | | | 2 | .28† | | | | (0 | .39)† | | | | 6,722 | | | | | 73 | | |
| 10-31-07 | | | 23 | .54 | | | | (0 | .17)• | | | | 7 | .21 | | | | 7 | .04 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 30 | .58 | | | | 29 | .91 | | | | 2 | .42 | | | | 2 | .47 | | | | 2 | .46 | | | | (0 | .62) | | | | 22,049 | | | | | 66 | | |
| 10-31-06 | | | 19 | .67 | | | | (0 | .04) | | | | 3 | .91 | | | | 3 | .87 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 23 | .54 | | | | 19 | .67 | | | | 2 | .43 | | | | 2 | .43 | | | | 2 | .42 | | | | (0 | .25) | | | | 21,364 | | | | | 77 | | |
| 10-31-05 | | | 17 | .39 | | | | (0 | .04) | | | | 2 | .32 | | | | 2 | .28 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .00* | | | | — | | | | | 19 | .67 | | | | 13 | .11(a) | | | | 2 | .55 | | | | 2 | .50 | | | | 2 | .50 | | | | (0 | .19) | | | | 23,483 | | | | | 129 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 24 | .88 | | | | (0 | .08)• | | | | 3 | .38 | | | | 3 | .30 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 28 | .10 | | | | 13 | .26 | | | | 2 | .27 | | | | 2 | .25† | | | | 2 | .25† | | | | (0 | .61)† | | | | 75,753 | | | | | 21 | | |
| 10-31-09 | | | 16 | .08 | | | | (0 | .05) | | | | 8 | .85 | | | | 8 | .80 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 24 | .88 | | | | 54 | .73 | | | | 2 | .33 | | | | 2 | .25† | | | | 2 | .24† | | | | (0 | .30)† | | | | 48,308 | | | | | 81 | | |
| 10-31-08 | | | 27 | .18 | | | | (0 | .09) | | | | (10 | .99) | | | | (11 | .08) | | | | 0 | .02 | | | | — | | | | | — | | | | | 0 | .02 | | | | — | | | | | — | | | | | 16 | .08 | | | | (40 | .79) | | | | 2 | .37 | | | | 2 | .30† | | | | 2 | .28† | | | | (0 | .36)† | | | | 21,045 | | | | | 73 | | |
| 10-31-07 | | | 20 | .93 | | | | (0 | .14)• | | | | 6 | .39 | | | | 6 | .25 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 27 | .18 | | | | 29 | .86 | | | | 2 | .42 | | | | 2 | .47 | | | | 2 | .46 | | | | (0 | .60) | | | | 39,537 | | | | | 66 | | |
| 10-31-06 | | | 17 | .50 | | | | (0 | .05) | | | | 3 | .50 | | | | 3 | .45 | | | | 0 | .02 | | | | — | | | | | — | | | | | 0 | .02 | | | | — | | | | | — | | | | | 20 | .93 | | | | 19 | .73 | | | | 2 | .43 | | | | 2 | .43 | | | | 2 | .42 | | | | (0 | .26) | | | | 31,612 | | | | | 77 | | |
| 10-31-05 | | | 15 | .48 | | | | (0 | .04) | | | | 2 | .06 | | | | 2 | .02 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .00* | | | | — | | | | | 17 | .50 | | | | 13 | .05(a) | | | | 2 | .55 | | | | 2 | .50 | | | | 2 | .50 | | | | (0 | .19) | | | | 30,918 | | | | | 129 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 26 | .46 | | | | 0 | .12 | | | | 3 | .56 | | | | 3 | .68 | | | | 0 | .24 | | | | — | | | | | — | | | | | 0 | .24 | | | | — | | | | | — | | | | | 29 | .90 | | | | 13 | .95 | | | | 1 | .11 | | | | 1 | .10† | | | | 1 | .10† | | | | 0 | .88† | | | | 57,482 | | | | | 21 | | |
| 10-31-09 | | | 16 | .92 | | | | 0 | .18• | | | | 9 | .36 | | | | 9 | .54 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .46 | | | | 56 | .38 | | | | 1 | .18 | | | | 1 | .17† | | | | 1 | .16† | | | | 0 | .82† | | | | 10,388 | | | | | 81 | | |
| 10-31-08 | | | 28 | .57 | | | | 0 | .22 | | | | (11 | .59) | | | | (11 | .37) | | | | 0 | .28 | | | | — | | | | | — | | | | | 0 | .28 | | | | — | | | | | — | | | | | 16 | .92 | | | | (40 | .13) | | | | 1 | .22 | | | | 1 | .22† | | | | 1 | .20† | | | | 0 | .76† | | | | 5,794 | | | | | 73 | | |
| 10-31-07 | | | 21 | .73 | | | | 0 | .15 | | | | 6 | .69 | | | | 6 | .84 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 28 | .57 | | | | 31 | .48 | | | | 1 | .25 | | | | 1 | .30 | | | | 1 | .29 | | | | 0 | .67 | | | | 7,845 | | | | | 66 | | |
09-06-06(4)–10-31-06 | | | 21 | .31 | | | | (0 | .11) | | | | 0 | .53 | | | | 0 | .42 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 21 | .73 | | | | 1 | .97 | | | | 1 | .27 | | | | 1 | .26 | | | | 1 | .26 | | | | (0 | .69) | | | | 3,010 | | | | | 77 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 26 | .46 | | | | 0 | .13• | | | | 3 | .51 | | | | 3 | .64 | | | | 0 | .24 | | | | — | | | | | — | | | | | 0 | .24 | | | | — | | | | | — | | | | | 29 | .86 | | | | 13 | .81 | | | | 1 | .27 | | | | 1 | .25† | | | | 1 | .25† | | | | 0 | .88† | | | | 12,335 | | | | | 21 | | |
06-01-09(4)–10-31-09 | | | 24 | .24 | | | | (0 | .08)• | | | | 2 | .30 | | | | 2 | .22 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .46 | | | | 9 | .16 | | | | 1 | .18 | | | | 1 | .17† | | | | 1 | .16† | | | | (0 | .79)† | | | | 250 | | | | | 81 | | |
| |
ING Asia-Pacific Real Estate Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 5 | .71 | | | | 0 | .05• | | | | 0 | .20 | | | | 0 | .25 | | | | 0 | .55 | | | | — | | | | | — | | | | | 0 | .55 | | | | — | | | | | — | | | | | 5 | .41 | | | | 4 | .47 | | | | 3 | .84 | | | | 1 | .76† | | | | 1 | .76† | | | | 1 | .77† | | | | 3,897 | | | | | 78 | | |
| 10-31-09 | | | 4 | .51 | | | | 0 | .10• | | | | 1 | .21 | | | | 1 | .31 | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 5 | .71 | | | | 29 | .71 | | | | 5 | .08 | | | | 1 | .77† | | | | 1 | .77† | | | | 2 | .23† | | | | 3,479 | | | | | 98 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .11 | | | | (5 | .50) | | | | (5 | .39) | | | | 0 | .10 | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | — | | | | | 4 | .51 | | | | (54 | .27) | | | | 4 | .14 | | | | 1 | .75 | | | | 1 | .75 | | | | 1 | .54 | | | | 3,144 | | | | | 81 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 5 | .68 | | | | 0 | .03 | | | | 0 | .20 | | | | 0 | .23 | | | | 0 | .53 | | | | — | | | | | — | | | | | 0 | .53 | | | | — | | | | | — | | | | | 5 | .38 | | | | 4 | .09 | | | | 4 | .59 | | | | 2 | .51† | | | | 2 | .51† | | | | 0 | .98† | | | | 28 | | | | | 78 | | |
| 10-31-09 | | | 4 | .50 | | | | 0 | .07 | | | | 1 | .19 | | | | 1 | .26 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 5 | .68 | | | | 28 | .60 | | | | 5 | .83 | | | | 2 | .52† | | | | 2 | .52† | | | | 1 | .43† | | | | 27 | | | | | 98 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .07 | | | | (5 | .51) | | | | (5 | .44) | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 4 | .50 | | | | (54 | .63) | | | | 4 | .89 | | | | 2 | .50 | | | | 2 | .50 | | | | 1 | .15 | | | | 18 | | | | | 81 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 5 | .69 | | | | 0 | .02 | | | | 0 | .20 | | | | 0 | .22 | | | | 0 | .53 | | | | — | | | | | — | | | | | 0 | .53 | | | | — | | | | | — | | | | | 5 | .38 | | | | 3 | .96 | | | | 4 | .59 | | | | 2 | .51† | | | | 2 | .51† | | | | 0 | .98† | | | | 1,192 | | | | | 78 | | |
| 10-31-09 | | | 4 | .50 | | | | 0 | .06• | | | | 1 | .21 | | | | 1 | .27 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 5 | .69 | | | | 28 | .54 | | | | 5 | .83 | | | | 2 | .52† | | | | 2 | .52† | | | | 1 | .39† | | | | 930 | | | | | 98 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .06• | | | | (5 | .50) | | | | (5 | .44) | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 4 | .50 | | | | (54 | .62) | | | | 4 | .89 | | | | 2 | .50 | | | | 2 | .50 | | | | 1 | .12 | | | | 3,532 | | | | | 81 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 5 | .68 | | | | 0 | .05• | | | | 0 | .21 | | | | 0 | .26 | | | | 0 | .56 | | | | — | | | | | — | | | | | 0 | .56 | | | | — | | | | | — | | | | | 5 | .38 | | | | 4 | .66 | | | | 3 | .51 | | | | 1 | .43† | | | | 1 | .43† | | | | 1 | .98† | | | | 3 | | | | | 78 | | |
| 10-31-09 | | | 4 | .50 | | | | 0 | .11• | | | | 1 | .20 | | | | 1 | .31 | | | | 0 | .13 | | | | — | | | | | — | | | | | 0 | .13 | | | | — | | | | | — | | | | | 5 | .68 | | | | 29 | .97 | | | | 4 | .82 | | | | 1 | .51† | | | | 1 | .51† | | | | 2 | .40† | | | | 1 | | | | | 98 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .13 | | | | (5 | .51) | | | | (5 | .38) | | | | 0 | .12 | | | | — | | | | | — | | | | | 0 | .12 | | | | — | | | | | — | | | | | 4 | .50 | | | | (54 | .25) | | | | 3 | .89 | | | | 1 | .50 | | | | 1 | .50 | | | | 1 | .77 | | | | 0 | ** | | | | 81 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
52
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Emerging Countries Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 23 | .64 | | | | (0 | .11)• | | | | 3 | .00 | | | | 2 | .89 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .53 | | | | 12 | .23 | | | | 2 | .14 | | | | 1 | .91 | | | | 1 | .91 | | | | (0 | .88) | | | | 82,205 | | | | | 36 | | |
| 10-31-09 | | | 16 | .04 | | | | 0 | .05• | | | | 7 | .82 | | | | 7 | .87 | | | | 0 | .50 | | | | — | | | | | — | | | | | 0 | .50 | | | | 0 | .23 | | | | — | | | | | 23 | .64 | | | | 52 | .02(e) | | | | 2 | .28 | | | | 2 | .04 | | | | 2 | .04 | | | | 0 | .29 | | | | 77,556 | | | | | 148 | | |
| 10-31-08 | | | 41 | .48 | | | | 0 | .71 | | | | (24 | .59) | | | | (23 | .88) | | | | 0 | .45 | | | | 1 | .11 | | | | — | | | | | 1 | .56 | | | | — | | | | | — | | | | | 16 | .04 | | | | (59 | .64) | | | | 2 | .10 | | | | 1 | .96 | | | | 1 | .94 | | | | 1 | .86 | | | | 60,207 | | | | | 177 | | |
| 10-31-07 | | | 29 | .62 | | | | 0 | .47 | | | | 11 | .82 | | | | 12 | .29 | | | | 0 | .43 | | | | — | | | | | — | | | | | 0 | .43 | | | | — | | | | | — | | | | | 41 | .48 | | | | 41 | .93 | | | | 1 | .99 | | | | 1 | .89 | | | | 1 | .86 | | | | 1 | .42 | | | | 197,307 | | | | | 51 | | |
| 10-31-06 | | | 23 | .60 | | | | 0 | .48 | | | | 5 | .68 | | | | 6 | .16 | | | | — | | | | | 0 | .14 | | | | — | | | | | 0 | .14 | | | | — | | | | | — | | | | | 29 | .62 | | | | 26 | .19 | | | | 2 | .02 | | | | 1 | .92 | | | | 1 | .91 | | | | 1 | .80 | | | | 123,219 | | | | | 35 | | |
| 10-31-05 | | | 19 | .40 | | | | 0 | .19 | | | | 3 | .98 | | | | 4 | .17 | | | | 0 | .02 | | | | — | | | | | — | | | | | 0 | .02 | | | | 0 | .05 | | | | — | | | | | 23 | .60 | | | | 21 | .76(c) | | | | 2 | .09 | | | | 2 | .00 | | | | 2 | .00 | | | | 0 | .91 | | | | 87,143 | | | | | 124 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 23 | .45 | | | | (0 | .21)• | | | | 2 | .98 | | | | 2 | .77 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .22 | | | | 11 | .81 | | | | 2 | .79 | | | | 2 | .66 | | | | 2 | .66 | | | | (1 | .66) | | | | 4,671 | | | | | 36 | | |
| 10-31-09 | | | 15 | .73 | | | | (0 | .08)• | | | | 7 | .74 | | | | 7 | .66 | | | | 0 | .17 | | | | — | | | | | — | | | | | 0 | .17 | | | | 0 | .23 | | | | — | | | | | 23 | .45 | | | | 50 | .68(e) | | | | 2 | .93 | | | | 2 | .79 | | | | 2 | .79 | | | | (0 | .44) | | | | 4,973 | | | | | 148 | | |
| 10-31-08 | | | 40 | .67 | | | | 0 | .36• | | | | (24 | .05) | | | | (23 | .69) | | | | 0 | .14 | | | | 1 | .11 | | | | — | | | | | 1 | .25 | | | | — | | | | | — | | | | | 15 | .73 | | | | (59 | .94) | | | | 2 | .75 | | | | 2 | .71 | | | | 2 | .69 | | | | 1 | .10 | | | | 4,312 | | | | | 177 | | |
| 10-31-07 | | | 29 | .04 | | | | 0 | .24• | | | | 11 | .57 | | | | 11 | .81 | | | | 0 | .18 | | | | — | | | | | — | | | | | 0 | .18 | | | | — | | | | | — | | | | | 40 | .67 | | | | 40 | .85 | | | | 2 | .64 | | | | 2 | .64 | | | | 2 | .61 | | | | 0 | .67 | | | | 16,648 | | | | | 51 | | |
| 10-31-06 | | | 23 | .17 | | | | 0 | .28• | | | | 5 | .59 | | | | 5 | .87 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 29 | .04 | | | | 25 | .33 | | | | 2 | .67 | | | | 2 | .67 | | | | 2 | .66 | | | | 1 | .06 | | | | 13,575 | | | | | 35 | | |
| 10-31-05 | | | 19 | .17 | | | | 0 | .04 | | | | 3 | .91 | | | | 3 | .95 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .05 | | | | — | | | | | 23 | .17 | | | | 20 | .87(c) | | | | 2 | .74 | | | | 2 | .74 | | | | 2 | .74 | | | | 0 | .14 | | | | 12,562 | | | | | 124 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 22 | .01 | | | | (0 | .19)• | | | | 2 | .79 | | | | 2 | .60 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 24 | .61 | | | | 11 | .81 | | | | 2 | .79 | | | | 2 | .66 | | | | 2 | .66 | | | | (1 | .64) | | | | 17,383 | | | | | 36 | | |
| 10-31-09 | | | 14 | .82 | | | | (0 | .07)• | | | | 7 | .26 | | | | 7 | .19 | | | | 0 | .22 | | | | — | | | | | — | | | | | 0 | .22 | | | | 0 | .22 | | | | — | | | | | 22 | .01 | | | | 50 | .69(e) | | | | 2 | .93 | | | | 2 | .79 | | | | 2 | .79 | | | | (0 | .42) | | | | 16,868 | | | | | 148 | | |
| 10-31-08 | | | 38 | .45 | | | | 0 | .34• | | | | (22 | .65) | | | | (22 | .31) | | | | 0 | .21 | | | | 1 | .11 | | | | — | | | | | 1 | .32 | | | | — | | | | | — | | | | | 14 | .82 | | | | (59 | .92) | | | | 2 | .75 | | | | 2 | .71 | | | | 2 | .69 | | | | 1 | .11 | | | | 14,586 | | | | | 177 | | |
| 10-31-07 | | | 27 | .53 | | | | 0 | .20 | | | | 10 | .97 | | | | 11 | .17 | | | | 0 | .25 | | | | — | | | | | — | | | | | 0 | .25 | | | | — | | | | | — | | | | | 38 | .45 | | | | 40 | .82 | | | | 2 | .64 | | | | 2 | .64 | | | | 2 | .61 | | | | 0 | .65 | | | | 53,885 | | | | | 51 | | |
| 10-31-06 | | | 22 | .04 | | | | 0 | .25 | | | | 5 | .31 | | | | 5 | .56 | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 27 | .53 | | | | 25 | .29 | | | | 2 | .67 | | | | 2 | .67 | | | | 2 | .66 | | | | 1 | .12 | | | | 35,847 | | | | | 35 | | |
| 10-31-05 | | | 18 | .24 | | | | 0 | .03 | | | | 3 | .72 | | | | 3 | .75 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .05 | | | | — | | | | | 22 | .04 | | | | 20 | .83(c) | | | | 2 | .74 | | | | 2 | .74 | | | | 2 | .74 | | | | 0 | .25 | | | | 20,985 | | | | | 124 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 23 | .66 | | | | (0 | .03) | | | | 2 | .98 | | | | 2 | .95 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .61 | | | | 12 | .47 | | | | 1 | .62 | | | | 1 | .49 | | | | 1 | .49 | | | | (0 | .31) | | | | 59,830 | | | | | 36 | | |
| 10-31-09 | | | 16 | .11 | | | | 0 | .13• | | | | 7 | .82 | | | | 7 | .95 | | | | 0 | .63 | | | | — | | | | | — | | | | | 0 | .63 | | | | 0 | .23 | | | | — | | | | | 23 | .66 | | | | 52 | .74(e) | | | | 1 | .74 | | | | 1 | .60 | | | | 1 | .60 | | | | 0 | .71 | | | | 30,758 | | | | | 148 | | |
| 10-31-08 | | | 41 | .63 | | | | 0 | .56• | | | | (24 | .40) | | | | (23 | .84) | | | | 0 | .57 | | | | 1 | .11 | | | | — | | | | | 1 | .68 | | | | — | | | | | — | | | | | 16 | .11 | | | | (59 | .48) | | | | 1 | .67 | | | | 1 | .63 | | | | 1 | .61 | | | | 1 | .79 | | | | 18,429 | | | | | 177 | | |
| 10-31-07 | | | 29 | .72 | | | | 0 | .55 | | | | 11 | .90 | | | | 12 | .45 | | | | 0 | .54 | | | | — | | | | | — | | | | | 0 | .54 | | | | — | | | | | — | | | | | 41 | .63 | | | | 42 | .41 | | | | 1 | .56 | | | | 1 | .56 | | | | 1 | .53 | | | | 1 | .71 | | | | 41,551 | | | | | 51 | | |
12-21-05(4)–10-31-06 | | | 25 | .52 | | | | 0 | .65• | | | | 3 | .55 | | | | 4 | .20 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 29 | .72 | | | | 16 | .46 | | | | 1 | .55 | | | | 1 | .55 | | | | 1 | .54 | | | | 2 | .73 | | | | 23,456 | | | | | 35 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 24 | .77 | | | | 0 | .10• | | | | 2 | .97 | | | | 3 | .07 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 27 | .84 | | | | 12 | .39 | | | | 1 | .79 | | | | 1 | .66 | | | | 1 | .66 | | | | 0 | .75 | | | | 7,062 | | | | �� | 36 | | |
| 10-31-09 | | | 16 | .85 | | | | 0 | .01• | | | | 8 | .31 | | | | 8 | .32 | | | | 0 | .64 | | | | — | | | | | — | | | | | 0 | .64 | | | | 0 | .24 | | | | — | | | | | 24 | .77 | | | | 52 | .70(e) | | | | 1 | .74 | | | | 1 | .60 | | | | 1 | .60 | | | | 0 | .04 | | | | 93 | | | | | 148 | | |
02-12-08(4)–10-31-08 | | | 36 | .18 | | | | 0 | .54• | | | | (19 | .86) | | | | (19 | .32) | | | | — | | | | | 0 | .01 | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 16 | .85 | | | | (53 | .42) | | | | 1 | .67 | | | | 1 | .63 | | | | 1 | .61 | | | | 2 | .48 | | | | 36 | | | | | 177 | | |
| |
ING European Real Estate Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6 | .85 | | | | 0 | .06• | | | | (0 | .35) | | | | (0 | .29) | | | | 0 | .55 | | | | — | | | | | — | | | | | 0 | .55 | | | | — | | | | | — | | | | | 6 | .01 | | | | (4 | .78) | | | | 3 | .86 | | | | 1 | .78† | | | | 1 | .78† | | | | 1 | .84† | | | | 3,702 | | | | | 58 | | |
| 10-31-09 | | | 5 | .33 | | | | 0 | .12• | | | | 1 | .71 | | | | 1 | .83 | | | | 0 | .31 | | | | — | | | | | — | | | | | 0 | .31 | | | | — | | | | | — | | | | | 6 | .85 | | | | 36 | .84 | | | | 3 | .84 | | | | 1 | .75† | | | | 1 | .75† | | | | 2 | .34† | | | | 6,400 | | | | | 130 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .13• | | | | (4 | .68) | | | | (4 | .55) | | | | 0 | .12 | | | | — | | | | | — | | | | | 0 | .12 | | | | — | | | | | — | | | | | 5 | .33 | | | | (45 | .92) | | | | 4 | .45 | | | | 1 | .75† | | | | 1 | .75† | | | | 1 | .52† | | | | 3,157 | | | | | 162 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6 | .82 | | | | 0 | .04• | | | | (0 | .34) | | | | (0 | .30) | | | | 0 | .54 | | | | — | | | | | — | | | | | 0 | .54 | | | | — | | | | | — | | | | | 5 | .98 | | | | (5 | .02) | | | | 4 | .61 | | | | 2 | .53† | | | | 2 | .53† | | | | 1 | .16† | | | | 96 | | | | | 58 | | |
| 10-31-09 | | | 5 | .32 | | | | 0 | .08• | | | | 1 | .69 | | | | 1 | .77 | | | | 0 | .27 | | | | — | | | | | — | | | | | 0 | .27 | | | | — | | | | | — | | | | | 6 | .82 | | | | 35 | .71 | | | | 4 | .59 | | | | 2 | .50† | | | | 2 | .50† | | | | 1 | .56† | | | | 30 | | | | | 130 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .07• | | | | (4 | .68) | | | | (4 | .61) | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 5 | .32 | | | | (46 | .34) | | | | 5 | .20 | | | | 2 | .50† | | | | 2 | .50† | | | | 0 | .85† | | | | 10 | | | | | 162 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6 | .81 | | | | 0 | .04• | | | | (0 | .35) | | | | (0 | .31) | | | | 0 | .52 | | | | — | | | | | — | | | | | 0 | .52 | | | | — | | | | | — | | | | | 5 | .98 | | | | (5 | .06) | | | | 4 | .61 | | | | 2 | .53† | | | | 2 | .53† | | | | 1 | .25† | | | | 79 | | | | | 58 | | |
| 10-31-09 | | | 5 | .30 | | | | 0 | .10 | | | | 1 | .68 | | | | 1 | .78 | | | | 0 | .27 | | | | — | | | | | — | | | | | 0 | .27 | | | | — | | | | | — | | | | | 6 | .81 | | | | 35 | .77 | | | | 4 | .59 | | | | 2 | .50† | | | | 2 | .50† | | | | 1 | .85† | | | | 67 | | | | | 130 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .09 | | | | (4 | .72) | | | | (4 | .63) | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 5 | .30 | | | | (46 | .57) | | | | 5 | .20 | | | | 2 | .50† | | | | 2 | .50† | | | | 1 | .13† | | | | 48 | | | | | 162 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6 | .84 | | | | 0 | .09• | | | | (0 | .36) | | | | (0 | .27) | | | | 0 | .57 | | | | — | | | | | — | | | | | 0 | .57 | | | | — | | | | | — | | | | | 6 | .00 | | | | (4 | .56) | | | | 3 | .45 | | | | 1 | .37† | | | | 1 | .37† | | | | 2 | .80† | | | | 57 | | | | | 58 | | |
| 10-31-09 | | | 5 | .33 | | | | 0 | .16• | | | | 1 | .67 | | | | 1 | .83 | | | | 0 | .32 | | | | — | | | | | — | | | | | 0 | .32 | | | | — | | | | | — | | | | | 6 | .84 | | | | 37 | .07 | | | | 3 | .49 | | | | 1 | .40† | | | | 1 | .40† | | | | 3 | .07† | | | | 1 | | | | | 130 | | |
11-01-07(4)–10-31-08 | | | 10 | .00 | | | | 0 | .15• | | | | (4 | .68) | | | | (4 | .53) | | | | 0 | .14 | | | | — | | | | | — | | | | | 0 | .14 | | | | — | | | | | — | | | | | 5 | .33 | | | | (45 | .77) | | | | 4 | .20 | | | | 1 | .40† | | | | 1 | .40† | | | | 1 | .75† | | | | 1 | | | | | 162 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
53
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Foreign Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .85 | | | | 0 | .02• | | | | 0 | .56 | | | | 0 | .58 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 13 | .43 | | | | 4 | .51 | | | | 1 | .80 | | | | 1 | .68† | | | | 1 | .68† | | | | 0 | .37† | | | | 69,674 | | | | | 54 | | |
| 10-31-09 | | | 11 | .68 | | | | 0 | .12• | | | | 1 | .50 | | | | 1 | .62 | | | | 0 | .45 | | | | — | | | | | — | | | | | 0 | .45 | | | | — | | | | | — | | | | | 12 | .85 | | | | 14 | .38 | | | | 1 | .78 | | | | 1 | .70† | | | | 1 | .70† | | | | 1 | .13† | | | | 93,829 | | | | | 176 | | |
| 10-31-08 | | | 23 | .54 | | | | 0 | .18• | | | | (10 | .65) | | | | (10 | .47) | | | | — | | | | | 1 | .39 | | | | — | | | | | 1 | .39 | | | | — | | | | | — | | | | | 11 | .68 | | | | (47 | .01) | | | | 1 | .61 | | | | 1 | .60† | | | | 1 | .60† | | | | 0 | .93† | | | | 151,246 | | | | | 116 | | |
| 10-31-07 | | | 18 | .56 | | | | 0 | .10 | | | | 5 | .56 | | | | 5 | .66 | | | | — | | | | | 0 | .68 | | | | — | | | | | 0 | .68 | | | | — | | | | | — | | | | | 23 | .54 | | | | 31 | .32 | | | | 1 | .54 | | | | 1 | .54 | | | | 1 | .54 | | | | 0 | .59 | | | | 349,917 | | | | | 69 | | |
| 10-31-06 | | | 14 | .79 | | | | 0 | .08• | | | | 4 | .05 | | | | 4 | .13 | | | | — | | | | | 0 | .36 | | | | — | | | | | 0 | .36 | | | | — | | | | | — | | | | | 18 | .56 | | | | 28 | .39 | | | | 1 | .58 | | | | 1 | .65 | | | | 1 | .65 | | | | 0 | .49 | | | | 219,819 | | | | | 65 | | |
| 10-31-05 | | | 12 | .38 | | | | 0 | .06 | | | | 2 | .35 | | | | 2 | .41 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | .79 | | | | 19 | .47 | | | | 1 | .66 | | | | 1 | .68 | | | | 1 | .68 | | | | 0 | .53 | | | | 122,883 | | | | | 81 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .36 | | | | (0 | .02) | | | | 0 | .53 | | | | 0 | .51 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .87 | | | | 4 | .13 | | | | 2 | .55 | | | | 2 | .43† | | | | 2 | .43† | | | | (0 | .36)† | | | | 11,689 | | | | | 54 | | |
| 10-31-09 | | | 11 | .19 | | | | 0 | .04• | | | | 1 | .43 | | | | 1 | .47 | | | | 0 | .30 | | | | — | | | | | — | | | | | 0 | .30 | | | | — | | | | | — | | | | | 12 | .36 | | | | 13 | .42 | | | | 2 | .53 | | | | 2 | .45† | | | | 2 | .45† | | | | 0 | .38† | | | | 14,077 | | | | | 176 | | |
| 10-31-08 | | | 22 | .78 | | | | 0 | .02• | | | | (10 | .22) | | | | (10 | .20) | | | | — | | | | | 1 | .39 | | | | — | | | | | 1 | .39 | | | | — | | | | | — | | | | | 11 | .19 | | | | (47 | .42) | | | | 2 | .36 | | | | 2 | .35† | | | | 2 | .35† | | | | 0 | .11† | | | | 18,831 | | | | | 116 | | |
| 10-31-07 | | | 18 | .11 | | | | (0 | .03) | | | | 5 | .38 | | | | 5 | .35 | | | | — | | | | | 0 | .68 | | | | — | | | | | 0 | .68 | | | | — | | | | | — | | | | | 22 | .78 | | | | 30 | .35 | | | | 2 | .29 | | | | 2 | .29 | | | | 2 | .29 | | | | (0 | .16) | | | | 50,276 | | | | | 69 | | |
| 10-31-06 | | | 14 | .55 | | | | (0 | .04)• | | | | 3 | .96 | | | | 3 | .92 | | | | — | | | | | 0 | .36 | | | | — | | | | | 0 | .36 | | | | — | | | | | — | | | | | 18 | .11 | | | | 27 | .40 | | | | 2 | .33 | | | | 2 | .40 | | | | 2 | .40 | | | | (0 | .24) | | | | 38,136 | | | | | 65 | | |
| 10-31-05 | | | 12 | .26 | | | | (0 | .03) | | | | 2 | .32 | | | | 2 | .29 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | .55 | | | | 18 | .68 | | | | 2 | .41 | | | | 2 | .43 | | | | 2 | .43 | | | | (0 | .23) | | | | 22,944 | | | | | 81 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .36 | | | | (0 | .02) | | | | 0 | .53 | | | | 0 | .51 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .87 | | | | 4 | .13 | | | | 2 | .55 | | | | 2 | .43† | | | | 2 | .43† | | | | (0 | .37)† | | | | 62,359 | | | | | 54 | | |
| 10-31-09 | | | 11 | .21 | | | | 0 | .04• | | | | 1 | .43 | | | | 1 | .47 | | | | 0 | .32 | | | | — | | | | | — | | | | | 0 | .32 | | | | — | | | | | — | | | | | 12 | .36 | | | | 13 | .43 | | | | 2 | .53 | | | | 2 | .45† | | | | 2 | .45† | | | | 0 | .38† | | | | 76,677 | | | | | 176 | | |
| 10-31-08 | | | 22 | .81 | | | | 0 | .03• | | | | (10 | .24) | | | | (10 | .21) | | | | — | | | | | 1 | .39 | | | | — | | | | | 1 | .39 | | | | — | | | | | — | | | | | 11 | .21 | | | | (47 | .40) | | | | 2 | .36 | | | | 2 | .35† | | | | 2 | .35† | | | | 0 | .14† | | | | 102,274 | | | | | 116 | | |
| 10-31-07 | | | 18 | .14 | | | | (0 | .03) | | | | 5 | .38 | | | | 5 | .35 | | | | — | | | | | 0 | .68 | | | | — | | | | | 0 | .68 | | | | — | | | | | — | | | | | 22 | .81 | | | | 30 | .30 | | | | 2 | .29 | | | | 2 | .29 | | | | 2 | .29 | | | | (0 | .14) | | | | 232,439 | | | | | 69 | | |
| 10-31-06 | | | 14 | .57 | | | | (0 | .04)• | | | | 3 | .97 | | | | 3 | .93 | | | | — | | | | | 0 | .36 | | | | — | | | | | 0 | .36 | | | | — | | | | | — | | | | | 18 | .14 | | | | 27 | .43 | | | | 2 | .33 | | | | 2 | .40 | | | | 2 | .40 | | | | (0 | .26) | | | | 154,101 | | | | | 65 | | |
| 10-31-05 | | | 12 | .28 | | | | (0 | .03) | | | | 2 | .32 | | | | 2 | .29 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | .57 | | | | 18 | .65 | | | | 2 | .41 | | | | 2 | .43 | | | | 2 | .43 | | | | (0 | .27) | | | | 87,877 | | | | | 81 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 13 | .08 | | | | 0 | .05• | | | | 0 | .57 | | | | 0 | .62 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 13 | .70 | | | | 4 | .74 | | | | 1 | .35 | | | | 1 | .33† | | | | 1 | .33† | | | | 0 | .72† | | | | 43,148 | | | | | 54 | | |
| 10-31-09 | | | 11 | .92 | | | | 0 | .16• | | | | 1 | .54 | | | | 1 | .70 | | | | 0 | .54 | | | | — | | | | | — | | | | | 0 | .54 | | | | — | | | | | — | | | | | 13 | .08 | | | | 14 | .82 | | | | 1 | .33 | | | | 1 | .31† | | | | 1 | .31† | | | | 1 | .44† | | | | 65,256 | | | | | 176 | | |
| 10-31-08 | | | 23 | .91 | | | | 0 | .24• | | | | (10 | .84) | | | | (10 | .60) | | | | — | | | | | 1 | .39 | | | | — | | | | | 1 | .39 | | | | — | | | | | — | | | | | 11 | .92 | | | | (46 | .82) | | | | 1 | .28 | | | | 1 | .27† | | | | 1 | .27† | | | | 1 | .26† | | | | 68,020 | | | | | 116 | | |
| 10-31-07 | | | 18 | .78 | | | | 0 | .16 | | | | 5 | .65 | | | | 5 | .81 | | | | — | | | | | 0 | .68 | | | | — | | | | | 0 | .68 | | | | — | | | | | — | | | | | 23 | .91 | | | | 31 | .76 | | | | 1 | .21 | | | | 1 | .21 | | | | 1 | .21 | | | | 0 | .94 | | | | 108,732 | | | | | 69 | | |
| 10-31-06 | | | 14 | .93 | | | | 0 | .13• | | | | 4 | .08 | | | | 4 | .21 | | | | — | | | | | 0 | .36 | | | | — | | | | | 0 | .36 | | | | — | | | | | — | | | | | 18 | .78 | | | | 28 | .67 | | | | 1 | .28 | | | | 1 | .35 | | | | 1 | .34 | | | | 0 | .78 | | | | 61,248 | | | | | 65 | | |
| 10-31-05 | | | 12 | .45 | | | | 0 | .34 | | | | 2 | .14 | | | | 2 | .48 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 14 | .93 | | | | 19 | .92 | | | | 1 | .34 | | | | 1 | .35 | | | | 1 | .35 | | | | 0 | .97 | | | | 1,049 | | | | | 81 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 13 | .98 | | | | 0 | .02 | | | | 0 | .64 | | | | 0 | .66 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | �� | | | | — | | | | | 14 | .64 | | | | 4 | .72 | | | | 1 | .55 | | | | 1 | .43† | | | | 1 | .43† | | | | 0 | .79† | | | | 1,645 | | | | | 54 | | |
| 10-31-09 | | | 12 | .71 | | | | 0 | .18• | | | | 1 | .63 | | | | 1 | .81 | | | | 0 | .54 | | | | — | | | | | — | | | | | 0 | .54 | | | | — | | | | | — | | | | | 13 | .98 | | | | 14 | .79 | | | | 1 | .33 | | | | 1 | .31† | | | | 1 | .31† | | | | 1 | .47† | | | | 566 | | | | | 176 | | |
02-12-08(4)–10-31-08 | | | 20 | .48 | | | | 0 | .27• | | | | (8 | .04) | | | | (7 | .77) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .71 | | | | (37 | .94) | | | | 1 | .28 | | | | 1 | .27† | | | | 1 | .27† | | | | 2 | .03† | | | | 296 | | | | | 116 | | |
| |
ING Greater China Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .28 | | | | (0 | .09)• | | | | 0 | .47 | | | | 0 | .38 | | | | 0 | .21 | | | | — | | | | | — | | | | | 0 | .21 | | | | — | | | | | — | | | | | 14 | .45 | | | | 2 | .64 | | | | 2 | .07 | | | | 2 | .07 | | | | 2 | .07 | | | | (1 | .31) | | | | 30,971 | | | | | 41 | | |
| 10-31-09 | | | 9 | .24 | | | | 0 | .07• | | | | 5 | .78 | | | | 5 | .85 | | | | 0 | .21 | | | | 0 | .60 | | | | — | | | | | 0 | .81 | | | | — | | | | | — | | | | | 14 | .28 | | | | 67 | .10 | | | | 2 | .29 | | | | 2 | .11 | | | | 2 | .11 | | | | 0 | .58 | | | | 32,860 | | | | | 134 | | |
| 10-31-08 | | | 24 | .43 | | | | 0 | .05• | | | | (13 | .12) | | | | (13 | .07) | | | | 0 | .06 | | | | 2 | .06 | | | | — | | | | | 2 | .12 | | | | — | | | | | — | | | | | 9 | .24 | | | | (57 | .63) | | | | 1 | .96 | | | | 1 | .96 | | | | 1 | .96 | | | | 0 | .32 | | | | 20,481 | | | | | 159 | | |
| 10-31-07 | | | 12 | .49 | | | | 0 | .07 | | | | 11 | .93 | | | | 12 | .00 | | | | 0 | .06 | | | | 0 | .00* | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 24 | .43 | | | | 96 | .41 | | | | 1 | .91 | | | | 1 | .91 | | | | 1 | .91 | | | | 0 | .54 | | | | 73,804 | | | | | 109 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | 0 | .06 | | | | 2 | .43 | | | | 2 | .49 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .49 | | | | 24 | .90 | | | | 2 | .64 | | | | 2 | .64 | | | | 2 | .64 | | | | 0 | .75 | | | | 23,709 | | | | | 108 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .11 | | | | (0 | .15) | | | | 0 | .48 | | | | 0 | .33 | | | | 0 | .12 | | | | — | | | | | — | | | | | 0 | .12 | | | | — | | | | | — | | | | | 14 | .32 | | | | 2 | .32 | | | | 2 | .82 | | | | 2 | .82 | | | | 2 | .82 | | | | (2 | .07) | | | | 2,766 | | | | | 41 | | |
| 10-31-09 | | | 9 | .08 | | | | (0 | .03)• | | | | 5 | .72 | | | | 5 | .69 | | | | 0 | .06 | | | | 0 | .60 | | | | — | | | | | 0 | .66 | | | | — | | | | | — | | | | | 14 | .11 | | | | 65 | .73 | | | | 3 | .04 | | | | 2 | .86 | | | | 2 | .86 | | | | (0 | .29) | | | | 3,246 | | | | | 134 | | |
| 10-31-08 | | | 24 | .14 | | | | (0 | .05) | | | | (12 | .95) | | | | (13 | .00) | | | | — | | | | | 2 | .06 | | | | — | | | | | 2 | .06 | | | | — | | | | | — | | | | | 9 | .08 | | | | (57 | .95) | | | | 2 | .71 | | | | 2 | .71 | | | | 2 | .71 | | | | (0 | .33) | | | | 1,901 | | | | | 159 | | |
| 10-31-07 | | | 12 | .42 | | | | (0 | .03)• | | | | 11 | .79 | | | | 11 | .76 | | | | 0 | .04 | | | | 0 | .00* | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 24 | .14 | | | | 94 | .92 | | | | 2 | .66 | | | | 2 | .66 | | | | 2 | .66 | | | | (0 | .19) | | | | 7,414 | | | | | 109 | | |
01-06-06(4)–10-31-06 | | | 10 | .60 | | | | 0 | .05• | | | | 1 | .77 | | | | 1 | .82 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .42 | | | | 17 | .17 | | | | 3 | .39 | | | | 3 | .39 | | | | 3 | .39 | | | | 0 | .47 | | | | 1,957 | | | | | 108 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
54
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Greater China Fund (continued) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .15 | | | | (0 | .15)• | | | | 0 | .48 | | | | 0 | .33 | | | | 0 | .16 | | | | — | | | | | — | | | | | 0 | .16 | | | | — | | | | | — | | | | | 14 | .32 | | | | 2 | .28 | | | | 2 | .82 | | | | 2 | .82 | | | | 2 | .82 | | | | (2 | .09) | | | | 5,736 | | | | | 41 | | |
| 10-31-09 | | | 9 | .09 | | | | (0 | .02)• | | | | 5 | .73 | | | | 5 | .71 | | | | 0 | .05 | | | | 0 | .60 | | | | — | | | | | 0 | .65 | | | | — | | | | | — | | | | | 14 | .15 | | | | 65 | .77 | | | | 3 | .04 | | | | 2 | .86 | | | | 2 | .86 | | | | (0 | .15) | | | | 6,182 | | | | | 134 | | |
| 10-31-08 | | | 24 | .16 | | | | (0 | .09)• | | | | (12 | .92) | | | | (13 | .01) | | | | — | | | | | 2 | .06 | | | | — | | | | | 2 | .06 | | | | — | | | | | — | | | | | 9 | .09 | | | | (57 | .94) | | | | 2 | .71 | | | | 2 | .71 | | | | 2 | .71 | | | | (0 | .52) | | | | 2,694 | | | | | 159 | | |
| 10-31-07 | | | 12 | .43 | | | | (0 | .03)• | | | | 11 | .79 | | | | 11 | .76 | | | | 0 | .03 | | | | 0 | .00* | | | | — | | | | | 0 | .03 | | | | — | | | | | — | | | | | 24 | .16 | | | | 94 | .75 | | | | 2 | .66 | | | | 2 | .66 | | | | 2 | .66 | | | | (0 | .20) | | | | 12,386 | | | | | 109 | | |
01-11-06(4)–10-31-06 | | | 10 | .67 | | | | 0 | .05• | | | | 1 | .71 | | | | 1 | .76 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .43 | | | | 16 | .49 | | | | 3 | .39 | | | | 3 | .39 | | | | 3 | .39 | | | | 0 | .53 | | | | 2,124 | | | | | 108 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .31 | | | | (0 | .06)• | | | | 0 | .48 | | | | 0 | .42 | | | | 0 | .27 | | | | — | | | | | — | | | | | 0 | .27 | | | | — | | | | | — | | | | | 14 | .46 | | | | 2 | .88 | | | | 1 | .71 | | | | 1 | .71 | | | | 1 | .71 | | | | (0 | .80) | | | | 2,176 | | | | | 41 | | |
| 10-31-09 | | | 9 | .28 | | | | 0 | .19• | | | | 5 | .72 | | | | 5 | .91 | | | | 0 | .28 | | | | 0 | .60 | | | | — | | | | | 0 | .88 | | | | — | | | | | — | | | | | 14 | .31 | | | | 67 | .79 | | | | 1 | .86 | | | | 1 | .68 | | | | 1 | .68 | | | | 1 | .48 | | | | 690 | | | | | 134 | | |
| 10-31-08 | | | 24 | .46 | | | | 0 | .16• | | | | (13 | .18) | | | | (13 | .02) | | | | 0 | .10 | | | | 2 | .06 | | | | — | | | | | 2 | .16 | | | | — | | | | | — | | | | | 9 | .28 | | | | (57 | .42) | | | | 1 | .70 | | | | 1 | .70 | | | | 1 | .70 | | | | 1 | .02 | | | | 39 | | | | | 159 | | |
| 10-31-07 | | | 12 | .50 | | | | 0 | .11 | | | | 11 | .93 | | | | 12 | .04 | | | | 0 | .08 | | | | 0 | .00* | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 24 | .46 | | | | 96 | .81 | | | | 1 | .66 | | | | 1 | .66 | | | | 1 | .66 | | | | 0 | .73 | | | | 52 | | | | | 109 | | |
05-08-06(4)–10-31-06 | | | 12 | .84 | | | | 0 | .08 | | | | (0 | .42) | | | | (0 | .34) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .50 | | | | (2 | .65) | | | | 2 | .39 | | | | 2 | .39 | | | | 2 | .39 | | | | 1 | .47 | | | | 22 | | | | | 108 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 14 | .19 | | | | (0 | .09)• | | | | 0 | .47 | | | | 0 | .38 | | | | 0 | .23 | | | | — | | | | | — | | | | | 0 | .23 | | | | — | | | | | — | | | | | 14 | .34 | | | | 2 | .67 | | | | 2 | .07 | | | | 2 | .07 | | | | 2 | .07 | | | | (1 | .26) | | | | 4,051 | | | | | 41 | | |
| 10-31-09 | | | 9 | .26 | | | | 0 | .11• | | | | 5 | .70 | | | | 5 | .81 | | | | 0 | .28 | | | | 0 | .60 | | | | — | | | | | 0 | .88 | | | | — | | | | | — | | | | | 14 | .19 | | | | 66 | .79 | | | | 2 | .29 | | | | 2 | .11 | | | | 2 | .11 | | | | 0 | .85 | | | | 2,966 | | | | | 134 | | |
06-04-08(4)–10-31-08 | | | 16 | .83 | | | | 0 | .11• | | | | (7 | .68) | | | | (7 | .57) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .26 | | | | (44 | .98) | | | | 1 | .96 | | | | 1 | .96 | | | | 1 | .96 | | | | 2 | .23 | | | | 206 | | | | | 159 | | |
ING Index Plus International Equity Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .80 | | | | 0 | .06 | | | | 0 | .19 | | | | 0 | .25 | | | | 0 | .15 | | | | — | | | | | — | | | | | 0 | .15 | | | | — | | | | | — | | | | | 7 | .90 | | | | 3 | .16 | | | | 1 | .36 | | | | 1 | .16 | | | | 1 | .16 | | | | 1 | .42 | | | | 8,800 | | | | | 64 | | |
| 10-31-09 | | | 6 | .35 | | | | 0 | .16• | | | | 1 | .49 | | | | 1 | .65 | | | | 0 | .23 | | | | — | | | | | — | | | | | 0 | .23 | | | | 0 | .03 | | | | — | | | | | 7 | .80 | | | | 27 | .40(f) | | | | 1 | .53 | | | | 1 | .15 | | | | 1 | .15 | | | | 2 | .58 | | | | 8,828 | | | | | 169 | | |
| 10-31-08 | | | 13 | .95 | | | | 0 | .19• | | | | (6 | .24) | | | | (6 | .05) | | | | 0 | .18 | | | | 1 | .37 | | | | — | | | | | 1 | .55 | | | | — | | | | | — | | | | | 6 | .35 | | | | (48 | .51) | | | | 1 | .73 | | | | 1 | .30 | | | | 1 | .30 | | | | 1 | .93 | | | | 9,446 | | | | | 215 | | |
| 10-31-07 | | | 11 | .68 | | | | 0 | .14• | | | | 2 | .48 | | | | 2 | .62 | | | | 0 | .08 | | | | 0 | .27 | | | | — | | | | | 0 | .35 | | | | — | | | | | — | | | | | 13 | .95 | | | | 22 | .98 | | | | 1 | .13 | | | | 1 | .16 | | | | 1 | .16 | | | | 1 | .17 | | | | 2,233 | | | | | 213 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | 0 | .14• | | | | 1 | .54 | | | | 1 | .68 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .68 | | | | 16 | .80 | | | | 1 | .30 | | | | 1 | .15 | | | | 1 | .15 | | | | 1 | .50 | | | | 12,513 | | | | | 188 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .80 | | | | 0 | .02• | | | | 0 | .20 | | | | 0 | .22 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 7 | .94 | | | | 2 | .86 | | | | 2 | .11 | | | | 1 | .91 | | | | 1 | .91 | | | | 0 | .57 | | | | 895 | | | | | 64 | | |
| 10-31-09 | | | 6 | .29 | | | | 0 | .11• | | | | 1 | .49 | | | | 1 | .60 | | | | 0 | .12 | | | | — | | | | | — | | | | | 0 | .12 | | | | 0 | .03 | | | | — | | | | | 7 | .80 | | | | 26 | .41(f) | | | | 2 | .28 | | | | 1 | .90 | | | | 1 | .90 | | | | 1 | .74 | | | | 1,221 | | | | | 169 | | |
| 10-31-08 | | | 13 | .90 | | | | 0 | .12• | | | | (6 | .20) | | | | (6 | .08) | | | | 0 | .16 | | | | 1 | .37 | | | | — | | | | | 1 | .53 | | | | — | | | | | — | | | | | 6 | .29 | | | | (48 | .88) | | | | 2 | .48 | | | | 2 | .05 | | | | 2 | .05 | | | | 1 | .22 | | | | 1,571 | | | | | 215 | | |
| 10-31-07 | | | 11 | .63 | | | | 0 | .09• | | | | 2 | .51 | | | | 2 | .60 | | | | 0 | .06 | | | | 0 | .27 | | | | — | | | | | 0 | .33 | | | | — | | | | | — | | | | | 13 | .90 | | | | 22 | .85 | | | | 1 | .89 | | | | 1 | .92 | | | | 1 | .92 | | | | 0 | .67 | | | | 734 | | | | | 213 | | |
01-12-06(4)–10-31-06 | | | 10 | .43 | | | | 0 | .06• | | | | 1 | .14 | | | | 1 | .20 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .63 | | | | 11 | .51 | | | | 2 | .05 | | | | 1 | .90 | | | | 1 | .90 | | | | 0 | .64 | | | | 264 | | | | | 188 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .75 | | | | 0 | .03 | | | | 0 | .19 | | | | 0 | .22 | | | | 0 | .09 | | | | — | | | | | — | | | | | 0 | .09 | | | | — | | | | | — | | | | | 7 | .88 | | | | 2 | .86 | | | | 2 | .11 | | | | 1 | .91 | | | | 1 | .91 | | | | 0 | .67 | | | | 1,368 | | | | | 64 | | |
| 10-31-09 | | | 6 | .28 | | | | 0 | .11• | | | | 1 | .48 | | | | 1 | .59 | | | | 0 | .15 | | | | — | | | | | — | | | | | 0 | .15 | | | | 0 | .03 | | | | — | | | | | 7 | .75 | | | | 26 | .45(f) | | | | 2 | .28 | | | | 1 | .90 | | | | 1 | .90 | | | | 1 | .78 | | | | 1,445 | | | | | 169 | | |
| 10-31-08 | | | 13 | .89 | | | | 0 | .12• | | | | (6 | .20) | | | | (6 | .08) | | | | 0 | .16 | | | | 1 | .37 | | | | — | | | | | 1 | .53 | | | | — | | | | | — | | | | | 6 | .28 | | | | (48 | .91) | | | | 2 | .48 | | | | 2 | .05 | | | | 2 | .05 | | | | 1 | .16 | | | | 1,311 | | | | | 215 | | |
| 10-31-07 | | | 11 | .61 | | | | 0 | .09• | | | | 2 | .50 | | | | 2 | .59 | | | | 0 | .04 | | | | 0 | .27 | | | | — | | | | | 0 | .31 | | | | — | | | | | — | | | | | 13 | .89 | | | | 22 | .81 | | | | 1 | .89 | | | | 1 | .92 | | | | 1 | .92 | | | | 0 | .69 | | | | 1,126 | | | | | 213 | | |
01-12-06(4)–10-31-06 | | | 10 | .43 | | | | 0 | .08• | | | | 1 | .10 | | | | 1 | .18 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .61 | | | | 11 | .31 | | | | 2 | .05 | | | | 1 | .90 | | | | 1 | .90 | | | | 0 | .87 | | | | 534 | | | | | 188 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .81 | | | | 0 | .07 | | | | 0 | .19 | | | | 0 | .26 | | | | 0 | .16 | | | | — | | | | | — | | | | | 0 | .16 | | | | — | | | | | — | | | | | 7 | .91 | | | | 3 | .32 | | | | 0 | .92 | | | | 0 | .91 | | | | 0 | .91 | | | | 1 | .69 | | | | 52,024 | | | | | 64 | | |
| 10-31-09 | | | 6 | .42 | | | | 0 | .18• | | | | 1 | .50 | | | | 1 | .68 | | | | 0 | .32 | | | | — | | | | | — | | | | | 0 | .32 | | | | 0 | .03 | | | | — | | | | | 7 | .81 | | | | 27 | .81(f) | | | | 0 | .92 | | | | 0 | .90 | | | | 0 | .90 | | | | 2 | .83 | | | | 51,144 | | | | | 169 | | |
| 10-31-08 | | | 14 | .06 | | | | 0 | .29• | | | | (6 | .32) | | | | (6 | .03) | | | | 0 | .24 | | | | 1 | .37 | | | | — | | | | | 1 | .61 | | | | — | | | | | — | | | | | 6 | .42 | | | | (48 | .12) | | | | 1 | .05 | | | | 0 | .62 | | | | 0 | .62 | | | | 2 | .80 | | | | 54,838 | | | | | 215 | | |
| 10-31-07 | | | 11 | .70 | | | | 0 | .20 | | | | 2 | .55 | | | | 2 | .75 | | | | 0 | .12 | | | | 0 | .27 | | | | — | | | | | 0 | .39 | | | | — | | | | | — | | | | | 14 | .06 | | | | 24 | .14 | | | | 0 | .84 | | | | 0 | .87 | | | | 0 | .87 | | | | 1 | .78 | | | | 118,924 | | | | | 213 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | 0 | .16• | | | | 1 | .54 | | | | 1 | .70 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .70 | | | | 17 | .00 | | | | 1 | .05 | | | | 0 | .90 | | | | 0 | .90 | | | | 1 | .69 | | | | 78,581 | | | | | 188 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7 | .75 | | | | 0 | .06 | | | | 0 | .19 | | | | 0 | .25 | | | | 0 | .15 | | | | — | | | | | — | | | | | 0 | .15 | | | | — | | | | | — | | | | | 7 | .85 | | | | 3 | .19 | | | | 1 | .36 | | | | 1 | .16 | | | | 1 | .16 | | | | 1 | .42 | | | | 45,694 | | | | | 64 | | |
| 10-31-09 | | | 6 | .31 | | | | 0 | .16• | | | | 1 | .49 | | | | 1 | .65 | | | | 0 | .24 | | | | — | | | | | — | | | | | 0 | .24 | | | | 0 | .03 | | | | — | | | | | 7 | .75 | | | | 27 | .60(f) | | | | 1 | .53 | | | | 1 | .15 | | | | 1 | .15 | | | | 2 | .53 | | | | 47,328 | | | | | 169 | | |
11-09-07(4)–10-31-08 | | | 13 | .09 | | | | 0 | .19• | | | | (5 | .36) | | | | (5 | .17) | | | | 0 | .24 | | | | 1 | .37 | | | | — | | | | | 1 | .61 | | | | — | | | | | — | | | | | 6 | .31 | | | | (45 | .16) | | | | 1 | .73 | | | | 1 | .30 | | | | 1 | .30 | | | | 2 | .03 | | | | 41,539 | | | | | 215 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
55
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING International Capital Appreciation Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .03 | | | | 0 | .01 | | | | 0 | .58 | | | | 0 | .59 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .62 | | | | 6 | .53 | | | | 1 | .67 | | | | 1 | .46 | | | | 1 | .45 | | | | 0 | .15 | | | | 25,070 | | | | | 23 | | |
| 10-31-09 | | | 6 | .70 | | | | 0 | .00•,* | | | | 2 | .49 | | | | 2 | .49 | | | | 0 | .15 | | | | — | | | | | 0 | .01 | | | | 0 | .16 | | | | — | | | | | — | | | | | 9 | .03 | | | | 37 | .80 | | | | 1 | .55 | | | | 1 | .51 | | | | 1 | .50 | | | | 0 | .01 | | | | 25,819 | | | | | 75 | | |
| 10-31-08 | | | 14 | .86 | | | | 0 | .12 | | | | (7 | .64) | | | | (7 | .52) | | | | 0 | .14 | | | | 0 | .50 | | | | — | | | | | 0 | .64 | | | | — | | | | | — | | | | | 6 | .70 | | | | (52 | .69) | | | | 1 | .41 | | | | 1 | .46 | | | | 1 | .46 | | | | 0 | .73 | | | | 1,612 | | | | | 83 | | |
| 10-31-07 | | | 11 | .39 | | | | 0 | .01• | | | | 3 | .76 | | | | 3 | .77 | | | | 0 | .05 | | | | 0 | .25 | | | | — | | | | | 0 | .30 | | | | — | | | | | — | | | | | 14 | .86 | | | | 33 | .89 | | | | 1 | .48 | | | | 1 | .50 | | | | 1 | .50 | | | | 0 | .08 | | | | 4,592 | | | | | 71 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | 0 | .04 | | | | 1 | .35 | | | | 1 | .39 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .39 | | | | 13 | .90 | | | | 1 | .84 | | | | 1 | .50 | | | | 1 | .50 | | | | 0 | .32 | | | | 3,677 | | | | | 91 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .95 | | | | (0 | .03) | | | | 0 | .58 | | | | 0 | .55 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .50 | | | | 6 | .15 | | | | 2 | .42 | | | | 2 | .21 | | | | 2 | .20 | | | | (0 | .63) | | | | 3,763 | | | | | 23 | | |
| 10-31-09 | | | 6 | .58 | | | | (0 | .06)• | | | | 2 | .47 | | | | 2 | .41 | | | | 0 | .03 | | | | — | | | | | 0 | .01 | | | | 0 | .04 | | | | — | | | | | — | | | | | 8 | .95 | | | | 36 | .68 | | | | 2 | .30 | | | | 2 | .26 | | | | 2 | .25 | | | | (0 | .75) | | | | 4,460 | | | | | 75 | | |
| 10-31-08 | | | 14 | .67 | | | | (0 | .01)• | | | | (7 | .47) | | | | (7 | .48) | | | | 0 | .11 | | | | 0 | .50 | | | | — | | | | | 0 | .61 | | | | — | | | | | — | | | | | 6 | .58 | | | | (53 | .01) | | | | 2 | .16 | | | | 2 | .21 | | | | 2 | .21 | | | | (0 | .11) | | | | 278 | | | | | 83 | | |
| 10-31-07 | | | 11 | .33 | | | | (0 | .09) | | | | 3 | .71 | | | | 3 | .62 | | | | 0 | .03 | | | | 0 | .25 | | | | — | | | | | 0 | .28 | | | | — | | | | | — | | | | | 14 | .67 | | | | 32 | .67 | | | | 2 | .23 | | | | 2 | .25 | | | | 2 | .25 | | | | (0 | .88) | | | | 943 | | | | | 71 | | |
01-09-06(4)–10-31-06 | | | 10 | .42 | | | | (0 | .04)• | | | | 0 | .95 | | | | 0 | .91 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .33 | | | | 8 | .73 | | | | 2 | .59 | | | | 2 | .25 | | | | 2 | .25 | | | | (0 | .43) | | | | 66 | | | | | 91 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .98 | | | | (0 | .03) | | | | 0 | .58 | | | | 0 | .55 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .53 | | | | 6 | .12 | | | | 2 | .42 | | | | 2 | .21 | | | | 2 | .20 | | | | (0 | .59) | | | | 7,619 | | | | | 23 | | |
| 10-31-09 | | | 6 | .60 | | | | (0 | .06)• | | | | 2 | .47 | | | | 2 | .41 | | | | 0 | .02 | | | | — | | | | | 0 | .01 | | | | 0 | .03 | | | | — | | | | | — | | | | | 8 | .98 | | | | 36 | .38 | | | | 2 | .30 | | | | 2 | .26 | | | | 2 | .25 | | | | (0 | .69) | | | | 7,825 | | | | | 75 | | |
| 10-31-08 | | | 14 | .71 | | | | 0 | .00•,* | | | | (7 | .50) | | | | (7 | .50) | | | | 0 | .11 | | | | 0 | .50 | | | | — | | | | | 0 | .61 | | | | — | | | | | — | | | | | 6 | .60 | | | | (52 | .99) | | | | 2 | .16 | | | | 2 | .21 | | | | 2 | .21 | | | | 0 | .01 | | | | 354 | | | | | 83 | | |
| 10-31-07 | | | 11 | .35 | | | | (0 | .12) | | | | 3 | .73 | | | | 3 | .61 | | | | 0 | .00• | | | | 0 | .25 | | | | — | | | | | 0 | .25 | | | | — | | | | | — | | | | | 14 | .71 | | | | 32 | .45 | | | | 2 | .23 | | | | 2 | .25 | | | | 2 | .25 | | | | (0 | .97) | | | | 971 | | | | | 71 | | |
01-24-06(4)–10-31-06 | | | 10 | .28 | | | | (0 | .03) | | | | 1 | .10 | | | | 1 | .07 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .35 | | | | 10 | .41 | | | | 2 | .59 | | | | 2 | .25 | | | | 2 | .25 | | | | (0 | .50) | | | | 65 | | | | | 91 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .00 | | | | 0 | .03 | | | | 0 | .58 | | | | 0 | .61 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .61 | | | | 6 | .78 | | | | 1 | .21 | | | | 1 | .00 | | | | 0 | .99 | | | | 0 | .59 | | | | 52,086 | | | | | 23 | | |
| 10-31-09 | | | 6 | .73 | | | | 0 | .09• | | | | 2 | .41 | | | | 2 | .50 | | | | 0 | .22 | | | | — | | | | | 0 | .01 | | | | 0.23 | | | | | — | | | | | — | | | | | 9 | .00 | | | | 38 | .21 | | | | 1 | .18 | | | | 1 | .14 | | | | 1 | .13 | | | | 1 | .17 | | | | 58,959 | | | | | 75 | | |
| 10-31-08 | | | 14 | .90 | | | | 0 | .17 | | | | (7 | .67) | | | | (7 | .50) | | | | 0 | .17 | | | | 0 | .50 | | | | — | | | | | 0 | .67 | | | | — | | | | | — | | | | | 6 | .73 | | | | (52 | .48) | | | | 1 | .08 | | | | 1 | .13 | | | | 1 | .13 | | | | 1 | .09 | | | | 47,918 | | | | | 83 | | |
| 10-31-07 | | | 11 | .43 | | | | 0 | .06• | | | | 3 | .75 | | | | 3 | .81 | | | | 0 | .09 | | | | 0 | .25 | | | | — | | | | | 0 | .34 | | | | — | | | | | — | | | | | 14 | .90 | | | | 34 | .14 | | | | 1 | .13 | | | | 1 | .15 | | | | 1 | .15 | | | | 0 | .47 | | | | 140,901 | | | | | 71 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | 0 | .02 | | | | 1 | .41 | | | | 1 | .43 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .43 | | | | 14 | .30 | | | | 1 | .56 | | | | 1 | .22 | | | | 1 | .22 | | | | 0 | .39 | | | | 47,200 | | | | | 91 | | |
Class W(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
08-07-09(5)–04-30-10 | | | 9 | .03 | | | | 0 | .02 | | | | 0 | .58 | | | | 0 | .60 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .63 | | | | 6 | .64 | | | | 1 | .49 | | | | 1 | .27 | | | | 1 | .26 | | | | 0 | .30 | | | | 11,457 | | | | | 23 | | |
ING International Real Estate Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .48 | | | | 0 | .09• | | | | (0 | .01) | | | | 0 | .08 | | | | 0 | .56 | | | | — | | | | | — | | | | | 0 | .56 | | | | — | | | | | — | | | | | 8 | .00 | | | | 0 | .90 | | | | 1 | .55 | | | | 1 | .50 | | | | 1 | .50 | | | | 2 | .19 | | | | 156,894 | | | | | 40 | | |
| 10-31-09 | | | 6 | .91 | | | | 0 | .17 | | | | 1 | .57 | | | | 1 | .74 | | | | 0 | .17 | | | | — | | | | | — | | | | | 0 | .17 | | | | — | | | | | — | | | | | 8 | .48 | | | | 25 | .77 | | | | 1 | .73 | | | | 1 | .53† | | | | 1 | .53† | | | | 2 | .43† | | | | 116,989 | | | | | 72 | | |
| 10-31-08 | | | 14 | .56 | | | | 0 | .33 | | | | (7 | .43) | | | | (7 | .10) | | | | 0 | .36 | | | | — | | | | | 0 | .19 | | | | 0 | .55 | | | | — | | | | | — | | | | | 6 | .91 | | | | (50 | .31) | | | | 1 | .48 | | | | 1 | .50† | | | | 1 | .50† | | | | 1 | .76† | | | | 89,623 | | | | | 46 | | |
| 10-31-07 | | | 11 | .63 | | | | 0 | .13• | | | | 3 | .14 | | | | 3 | .27 | | | | 0 | .34 | | | | — | | | | | — | | | | | 0 | .34 | | | | — | | | | | — | | | | | 14 | .56 | | | | 28 | .49 | | | | 1 | .51 | | | | 1 | .50 | | | | 1 | .50 | | | | 0 | .99 | | | | 271,425 | | | | | 44 | | |
02-28-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .09• | | | | 1 | .60 | | | | 1 | .69 | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 11 | .63 | | | | 16 | .94 | | | | 2 | .01 | | | | 1 | .50 | | | | 1 | .50 | | | | 1 | .33 | | | | 49,798 | | | | | 29 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .44 | | | | 0 | .05• | | | | (0 | .00)* | | | | 0 | .05 | | | | 0 | .53 | | | | — | | | | | — | | | | | 0 | .53 | | | | — | | | | | — | | | | | 7 | .96 | | | | 0 | .49 | | | | 2 | .30 | | | | 2 | .25 | | | | 2 | .25 | | | | 1 | .31 | | | | 3,359 | | | | | 40 | | |
| 10-31-09 | | | 6 | .88 | | | | 0 | .12 | | | | 1 | .56 | | | | 1 | .68 | | | | 0 | .12 | | | | — | | | | | — | | | | | 0 | .12 | | | | — | | | | | — | | | | | 8 | .44 | | | | 24 | .82 | | | | 2 | .48 | | | | 2 | .28† | | | | 2 | .28† | | | | 1 | .78† | | | | 3,875 | | | | | 72 | | |
| 10-31-08 | | | 14 | .50 | | | | 0 | .25 | | | | (7 | .41) | | | | (7 | .16) | | | | 0 | .27 | | | | — | | | | | 0 | .19 | | | | 0 | .46 | | | | — | | | | | — | | | | | 6 | .88 | | | | (50 | .72) | | | | 2 | .23 | | | | 2 | .25† | | | | 2 | .25† | | | | 1 | .00† | | | | 4,004 | | | | | 46 | | |
| 10-31-07 | | | 11 | .59 | | | | 0 | .03• | | | | 3 | .14 | | | | 3 | .17 | | | | 0 | .26 | | | | — | | | | | — | | | | | 0 | .26 | | | | — | | | | | — | | | | | 14 | .50 | | | | 27 | .69 | | | | 2 | .26 | | | | 2 | .25 | | | | 2 | .25 | | | | 0 | .25 | | | | 11,819 | | | | | 44 | | |
02-28-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .04• | | | | 1 | .59 | | | | 1 | .63 | | | | 0 | .04 | | | | — | | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 11 | .59 | | | | 16 | .38 | | | | 2 | .76 | | | | 2 | .25 | | | | 2 | .25 | | | | 0 | .51 | | | | 1,639 | | | | | 29 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .44 | | | | 0 | .06 | | | | (0 | .01) | | | | 0 | .05 | | | | 0 | .53 | | | | — | | | | | — | | | | | 0 | .53 | | | | — | | | | | — | | | | | 7 | .96 | | | | 0 | .51 | | | | 2 | .30 | | | | 2 | .25 | | | | 2 | .25 | | | | 1 | .34 | | | | 25,478 | | | | | 40 | | |
| 10-31-09 | | | 6 | .88 | | | | 0 | .13 | | | | 1 | .54 | | | | 1 | .67 | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 8 | .44 | | | | 24 | .76 | | | | 2 | .48 | | | | 2 | .28† | | | | 2 | .28† | | | | 1 | .81† | | | | 26,520 | | | | | 72 | | |
| 10-31-08 | | | 14 | .49 | | | | 0 | .29 | | | | (7 | .44) | | | | (7 | .15) | | | | 0 | .27 | | | | — | | | | | 0 | .19 | | | | 0 | .46 | | | | — | | | | | — | | | | | 6 | .88 | | | | (50 | .69) | | | | 2 | .23 | | | | 2 | .25† | | | | 2 | .25† | | | | 1 | .00† | | | | 36,661 | | | | | 46 | | |
| 10-31-07 | | | 11 | .59 | | | | 0 | .03• | | | | 3 | .13 | | | | 3 | .16 | | | | 0 | .26 | | | | — | | | | | — | | | | | 0 | .26 | | | | — | | | | | — | | | | | 14 | .49 | | | | 27 | .58 | | | | 2.26 | | | | | 2 | .25 | | | | 2 | .25 | | | | 0 | .24 | | | | 121,529 | | | | | 44 | | |
02-28-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .04• | | | | 1 | .59 | | | | 1 | .63 | | | | 0 | .04 | | | | — | | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 11 | .59 | | | | 16 | .31 | | | | 2 | .76 | | | | 2 | .25 | | | | 2 | .25 | | | | 0 | .54 | | | | 17,075 | | | | | 29 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
56
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING International Real Estate Fund (continued) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .49 | | | | 0 | .11 | | | | (0 | .01) | | | | 0 | .10 | | | | 0 | .58 | | | | — | | | | | — | | | | | 0 | .58 | | | | — | | | | | — | | | | | 8 | .01 | | | | 1 | .04 | | | | 1 | .17 | | | | 1 | .17 | | | | 1 | .17 | | | | 2 | .41 | | | | 340,142 | | | | | 40 | | |
| 10-31-09 | | | 6 | .92 | | | | 0 | .19 | | | | 1 | .57 | | | | 1 | .76 | | | | 0 | .19 | | | | — | | | | | — | | | | | 0 | .19 | | | | — | �� | | | | — | | | | | 8 | .49 | | | | 26 | .12 | | | | 1 | .23 | | | | 1 | .23† | | | | 1 | .23† | | | | 2 | .80† | | | | 387,251 | | | | | 72 | | |
| 10-31-08 | | | 14 | .58 | | | | 0 | .23• | | | | (7 | .31) | | | | (7 | .08) | | | | 0 | .39 | | | | — | | | | | 0 | .19 | | | | 0 | .58 | | | | — | | | | | — | | | | | 6 | .92 | | | | (50 | .14) | | | | 1 | .16 | | | | 1 | .18† | | | | 1 | .18† | | | | 2 | .22† | | | | 290,227 | | | | | 46 | | |
| 10-31-07 | | | 11 | .64 | | | | 0 | .16• | | | | 3 | .15 | | | | 3 | .31 | | | | 0 | .37 | | | | — | | | | | — | | | | | 0 | .37 | | | | — | | | | | — | | | | | 14 | .58 | | | | 28 | .80 | | | | 1 | .26 | | | | 1 | .25 | | | | 1 | .25 | | | | 1 | .22 | | | | 127,029 | | | | | 44 | | |
02-28-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .08• | | | | 1 | .63 | | | | 1 | .71 | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 11 | .64 | | | | 17 | .23 | | | | 1 | .76 | | | | 1 | .25 | | | | 1 | .25 | | | | 1 | .09 | | | | 22,336 | | | | | 29 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .51 | | | | 0 | .10• | | | | (0 | .01) | | | | 0 | .09 | | | | 0 | .57 | | | | — | | | | | — | | | | | 0 | .57 | | | | — | | | | | — | | | | | 8 | .03 | | | | 1 | .01 | | | | 1 | .30 | | | | 1 | .25 | | | | 1 | .25 | | | | 2 | .48 | | | | 3,578 | | | | | 40 | | |
| 10-31-09 | | | 6 | .91 | | | | 0 | .19 | | | | 1 | .60 | | | | 1 | .79 | | | | 0 | .19 | | | | — | | | | | — | | | | | 0 | .19 | | | | — | | | | | — | | | | | 8 | .51 | | | | 26 | .61 | | | | 1 | .23 | | | | 1 | .23† | | | | 1 | .23† | | | | 2 | .85† | | | | 2,094 | | | | | 72 | | |
02-12-08(4)–10-31-08 | | | 11 | .48 | | | | 0 | .17• | | | | (4 | .59) | | | | (4 | .42) | | | | 0 | .10 | | | | — | | | | | 0 | .05 | | | | 0 | .15 | | | | — | | | | | — | | | | | 6 | .91 | | | | (38 | .91) | | | | 1 | .18 | | | | 1 | .20† | | | | 1 | .20† | | | | 2 | .45† | | | | 307 | | | | | 46 | | |
| |
ING International SmallCap Multi-Manager Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 31 | .45 | | | | 0 | .02• | | | | 3 | .52 | | | | 3 | .54 | | | | 0 | .37 | | | | — | | | | | — | | | | | 0 | .37 | | | | — | | | | | — | | | | | 34 | .62 | | | | 11 | .34 | | | | 1 | .85 | | | | 1 | .84† | | | | 1 | .84† | | | | 0 | .13† | | | | 151,507 | | | | | 42 | | |
| 10-31-09 | | | 22 | .73 | | | | 0 | .21• | | | | 9 | .04 | | | | 9 | .25 | | | | 0 | .71 | | | | — | | | | | — | | | | | 0 | .71 | | | | 0 | .18 | | | | — | | | | | 31 | .45 | | | | 42 | .73(g) | | | | 1 | .95 | | | | 1 | .95† | | | | 1 | .95† | | | | 0 | .85† | | | | 177,914 | | | | | 103 | | |
| 10-31-08 | | | 66 | .43 | | | | 0 | .65 | | | | (36 | .15) | | | | (35 | .50) | | | | 0 | .32 | | | | 7 | .88 | | | | — | | | | | 8 | .20 | | | | — | | | | | — | | | | | 22 | .73 | | | | (59 | .84) | | | | 1 | .70 | | | | 1 | .70 | | | | 1 | .70 | | | | 1 | .27 | | | | 160,896 | | | | | 84 | | |
| 10-31-07 | | | 47 | .15 | | | | 0 | .31 | | | | 19 | .25 | | | | 19 | .56 | | | | 0 | .28 | | | | — | | | | | — | | | | | 0 | .28 | | | | — | | | | | — | | | | | 66 | .43 | | | | 41 | .67 | | | | 1 | .60 | | | | 1 | .60 | | | | 1 | .60 | | | | 0 | .67 | | | | 523,535 | | | | | 93 | | |
| 10-31-06 | | | 37 | .75 | | | | 0 | .29 | | | | 9 | .44 | | | | 9 | .73 | | | | 0 | .33 | | | | — | | | | | — | | | | | 0 | .33 | | | | — | | | | | — | | | | | 47 | .15 | | | | 25 | .91 | | | | 1 | .66 | | | | 1 | .66 | | | | 1 | .66 | | | | 0 | .67 | | | | 243,020 | | | | | 85 | | |
| 10-31-05 | | | 29 | .27 | | | | 0 | .33• | | | | 8 | .05 | | | | 8 | .38 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | 37 | .75 | | | | 28 | .97(d) | | | | 1 | .74 | | | | 1 | .74 | | | | 1 | .74 | | | | 0 | .98 | | | | 173,612 | | | | | 124 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 33 | .01 | | | | (0 | .11)• | | | | 3 | .73 | | | | 3 | .62 | | | | 0 | .10 | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | — | | | | | 36 | .53 | | | | 10 | .99 | | | | 2 | .50 | | | | 2 | .49† | | | | 2 | .49† | | | | (0 | .61)† | | | | 6,863 | | | | | 42 | | |
| 10-31-09 | | | 23 | .48 | | | | 0 | .06• | | | | 9 | .45 | | | | 9 | .51 | | | | 0 | .17 | | | | — | | | | | — | | | | | 0 | .17 | | | | 0 | .19 | | | | — | | | | | 33 | .01 | | | | 41 | .60(g) | | | | 2 | .60 | | | | 2 | .60† | | | | 2 | .60† | | | | 0 | .24† | | | | 8,383 | | | | | 103 | | |
| 10-31-08 | | | 68 | .31 | | | | 0 | .21• | | | | (37 | .16) | | | | (36 | .95) | | | | — | | | | | 7 | .88 | | | | — | | | | | 7 | .88 | | | | — | | | | | — | | | | | 23 | .48 | | | | (60 | .10) | | | | 2 | .35 | | | | 2 | .35 | | | | 2 | .35 | | | | 0 | .45 | | | | 11,892 | | | | | 84 | | |
| 10-31-07 | | | 48 | .53 | | | | 0 | .00•,* | | | | 19 | .78 | | | | 19 | .78 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 68 | .31 | | | | 40 | .76 | | | | 2 | .25 | | | | 2 | .25 | | | | 2 | .25 | | | | 0 | .00* | | | | 65,619 | | | | | 93 | | |
| 10-31-06 | | | 38 | .83 | | | | (0 | .01)• | | | | 9 | .75 | | | | 9 | .74 | | | | 0 | .04 | | | | — | | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 48 | .53 | | | | 25 | .10 | | | | 2 | .31 | | | | 2 | .31 | | | | 2 | .31 | | | | (0 | .03) | | | | 58,469 | | | | | 85 | | |
| 10-31-05 | | | 30 | .30 | | | | 0 | .10• | | | | 8 | .33 | | | | 8 | .43 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | 38 | .83 | | | | 28 | .15(d) | | | | 2 | .39 | | | | 2 | .39 | | | | 2 | .39 | | | | 0 | .29 | | | | 57,131 | | | | | 124 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 29 | .41 | | | | (0 | .06) | | | | 3 | .28 | | | | 3 | .22 | | | | 0 | .21 | | | | — | | | | | — | | | | | 0 | .21 | | | | — | | | | | — | | | | | 32 | .42 | | | | 10 | .99 | | | | 2 | .50 | | | | 2 | .49† | | | | 2 | .49† | | | | (0 | .51)† | | | | 32,485 | | | | | 42 | | |
| 10-31-09 | | | 21 | .15 | | | | 0 | .05• | | | | 8 | .46 | | | | 8 | .51 | | | | 0 | .42 | | | | — | | | | | — | | | | | 0 | .42 | | | | 0 | .17 | | | | — | | | | | 29 | .41 | | | | 41 | .80(g) | | | | 2 | .60 | | | | 2 | .60† | | | | 2 | .60† | | | | 0 | .21† | | | | 31,928 | | | | | 103 | | |
| 10-31-08 | | | 62 | .48 | | | | 0 | .34 | | | | (33 | .79) | | | | (33 | .45) | | | | — | | | | | 7 | .88 | | | | — | | | | | 7 | .88 | | | | — | | | | | — | | | | | 21 | .15 | | | | (60 | .11) | | | | 2 | .35 | | | | 2 | .35 | | | | 2 | .35 | | | | 0 | .58 | | | | 29,760 | | | | | 84 | | |
| 10-31-07 | | | 44 | .39 | | | | 0 | .00•,* | | | | 18 | .09 | | | | 18 | .09 | | | | 0 | .00* | | | | — | | | | | — | | | | | 0 | .00* | | | | — | | | | | — | | | | | 62 | .48 | | | | 40 | .76 | | | | 2 | .25 | | | | 2 | .25 | | | | 2 | .25 | | | | 0 | .01 | | | | 104,274 | | | | | 93 | | |
| 10-31-06 | | | 35 | .59 | | | | (0 | .00)* | | | | 8 | .91 | | | | 8 | .91 | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 44 | .39 | | | | 25 | .09 | | | | 2 | .31 | | | | 2 | .31 | | | | 2 | .31 | | | | (0 | .01) | | | | 65,534 | | | | | 85 | | |
| 10-31-05 | | | 27 | .77 | | | | 0 | .10• | | | | 7 | .62 | | | | 7 | .72 | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | 35 | .59 | | | | 28 | .16(d) | | | | 2 | .39 | | | | 2 | .39 | | | | 2 | .39 | | | | 0 | .30 | | | | 52,420 | | | | | 124 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 31 | .53 | | | | 0 | .12 | | | | 3 | .51 | | | | 3 | .63 | | | | 0 | .52 | | | | — | | | | | — | | | | | 0 | .52 | | | | — | | | | | — | | | | | 34 | .64 | | | | 11 | .63 | | | | 1 | .32 | | | | 1 | .31† | | | | 1 | .31† | | | | 0 | .74† | | | | 210,610 | | | | | 42 | | |
| 10-31-09 | | | 22 | .85 | | | | 0 | .32• | | | | 9 | .09 | | | | 9 | .41 | | | | 0 | .91 | | | | — | | | | | — | | | | | 0 | .91 | | | | 0 | .18 | | | | — | | | | | 31 | .53 | | | | 43 | .57(g) | | | | 1 | .45 | | | | 1 | .45† | | | | 1 | .45† | | | | 1 | .29† | | | | 164,985 | | | | | 103 | | |
| 10-31-08 | | | 66 | .72 | | | | 0 | .78 | | | | (36 | .25) | | | | (35 | .47) | | | | 0 | .52 | | | | 7 | .88 | | | | — | | | | | 8 | .40 | | | | — | | | | | — | | | | | 22 | .85 | | | | (59 | .66) | | | | 1 | .29 | | | | 1 | .29 | | | | 1 | .29 | | | | 1 | .71 | | | | 139,213 | | | | | 84 | | |
| 10-31-07 | | | 47 | .35 | | | | 0 | .60 | | | | 19 | .25 | | | | 19 | .85 | | | | 0 | .48 | | | | — | | | | | — | | | | | 0 | .48 | | | | — | | | | | — | | | | | 66 | .72 | | | | 42 | .24 | | | | 1 | .20 | | | | 1 | .20 | | | | 1 | .20 | | | | 1 | .12 | | | | 376,737 | | | | | 93 | | |
12-21-05(4)–10-31-06 | | | 40 | .64 | | | | 0 | .39• | | | | 6 | .32 | | | | 6 | .71 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 47 | .35 | | | | 16 | .51 | | | | 1 | .20 | | | | 1 | .20 | | | | 1 | .20 | | | | 1 | .02 | | | | 137,184 | | | | | 85 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 31 | .28 | | | | 0 | .09• | | | | 3 | .45 | | | | 3 | .54 | | | | 0 | .44 | | | | — | | | | | — | | | | | 0 | .44 | | | | — | | | | | — | | | | | 34 | .38 | | | | 11 | .40 | | | | 1 | .75 | | | | 1 | .74† | | | | 1 | .74† | | | | 0 | .57† | | | | 1,094 | | | | | 42 | | |
| 10-31-09 | | | 22 | .75 | | | | 0 | .18• | | | | 9 | .07 | | | | 9 | .25 | | | | 0 | .90 | | | | — | | | | | — | | | | | 0 | .90 | | | | 0 | .18 | | | | — | | | | | 31 | .28 | | | | 43 | .07(g) | | | | 1 | .85 | | | | 1 | .85† | | | | 1 | .85† | | | | 0 | .69† | | | | 565 | | | | | 103 | | |
06-04-08(4)–10-31-08 | | | 47 | .28 | | | | 0 | .18• | | | | (24 | .71) | | | | (24 | .53) | | | | — | | | | | 0 | .00* | | | | — | | | | | — | | | | | — | | | | | — | | | | | 22 | .75 | | | | (51 | .88) | | | | 1 | .60 | | | | 1 | .60 | | | | 1 | .60 | | | | 1 | .39 | | | | 62 | | | | | 84 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 37 | .21 | | | | 0 | .04 | | | | 4 | .22 | | | | 4 | .26 | | | | 0 | .51 | | | | — | | | | | — | | | | | 0 | .51 | | | | — | | | | | — | | | | | 40 | .96 | | | | 11 | .55 | | | | 1 | .50 | | | | 1 | .49† | | | | 1 | .49† | | | | 0 | .67† | | | | 42,248 | | | | | 42 | | |
| 10-31-09 | | | 26 | .83 | | | | 0 | .37 | | | | 10 | .71 | | | | 11 | .08 | | | | 0 | .92 | | | | — | | | | | — | | | | | 0 | .92 | | | | 0 | .22 | | | | — | | | | | 37 | .21 | | | | 43 | .54(g) | | | | 1 | .45 | | | | 1 | .45† | | | | 1 | .45† | | | | 1 | .32† | | | | 12,096 | | | | | 103 | | |
02-12-08(4)–10-31-08 | | | 50 | .70 | | | | 0 | .50• | | | | (24 | .37) | | | | (23 | .87) | | | | — | | | | | 0.00* | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 26 | .83 | | | | (47 | .08) | | | | 1 | .29 | | | | 1 | .29 | | | | 1 | .29 | | | | 1 | .80 | | | | 10,366 | | | | | 84 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
57
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING International Value Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 11 | .30 | | | | 0 | .09 | | | | 0 | .16 | | | | 0 | .25 | | | | 0 | .17 | | | | — | | | | | — | | | | | 0 | .17 | | | | — | | | | | — | | | | | 11 | .38 | | | | 2 | .19 | | | | 1 | .64 | | | | 1 | .64† | | | | 1 | .64† | | | | 1 | .39† | | | | 634,129 | | | | | 47 | | |
| 10-31-09 | | | 11 | .13 | | | | 0 | .14 | | | | 1 | .88 | | | | 2 | .02 | | | | 0 | .35 | | | | 1 | .51 | | | | — | | | | | 1 | .86 | | | | 0 | .01 | | | | — | | | | | 11 | .30 | | | | 21 | .74(h) | | | | 1 | .75 | | | | 1 | .75† | | | | 1 | .75† | | | | 1 | .25† | | | | 725,329 | | | | | 92 | | |
| 10-31-08 | | | 23 | .15 | | | | 0 | .39 | | | | (8 | .83) | | | | (8 | .44) | | | | 0 | .23 | | | | 3 | .35 | | | | — | | | | | 3 | .58 | | | | — | | | | | — | | | | | 11 | .13 | | | | (42 | .58) | | | | 1 | .58 | | | | 1 | .58† | | | | 1 | .57† | | | | 1 | .95† | | | | 931,162 | | | | | 23 | | |
| 10-31-07 | | | 21 | .52 | | | | 0 | .24• | | | | 3 | .73 | | | | 3 | .97 | | | | 0 | .20 | | | | 2 | .14 | | | | — | | | | | 2 | .34 | | | | — | | | | | — | | | | | 23 | .15 | | | | 19 | .87 | | | | 1 | .59 | | | | 1 | .59 | | | | 1 | .59 | | | | 1 | .08 | | | | 2,136,218 | | | | | 32 | | |
| 10-31-06 | | | 18 | .33 | | | | 0 | .18• | | | | 4 | .58 | | | | 4 | .76 | | | | 0 | .16 | | | | 1 | .41 | | | | — | | | | | 1 | .57 | | | | — | | | | | — | | | | | 21 | .52 | | | | 27 | .64 | | | | 1 | .60 | | | | 1 | .60 | | | | 1 | .60 | | | | 0 | .90 | | | | 1,995,027 | | | | | 25 | | |
| 10-31-05 | | | 16 | .90 | | | | 0 | .17 | | | | 2 | .28 | | | | 2 | .45 | | | | 0 | .22 | | | | 0 | .80 | | | | 0 | .00* | | | | 1 | .02 | | | | — | | | | | — | | | | | 18 | .33 | | | | 15 | .06(a) | | | | 1 | .60 | | | | 1 | .60 | | | | 1 | .60 | | | | 0 | .88 | | | | 1,732,332 | | | | | 21 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 11 | .14 | | | | 0 | .03• | | | | 0 | .17 | | | | 0 | .20 | | | | 0 | .04 | | | | — | | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 11 | .30 | | | | 1 | .82 | | | | 2 | .34 | | | | 2 | .34† | | | | 2 | .34† | | | | 0 | .46† | | | | 18,637 | | | | | 47 | | |
| 10-31-09 | | | 10 | .88 | | | | 0 | .06• | | | | 1 | .87 | | | | 1 | .93 | | | | 0 | .17 | | | | 1 | .51 | | | | — | | | | | 1 | .68 | | | | 0 | .01 | | | | — | | | | | 11 | .14 | | | | 20 | .91(h) | | | | 2 | .45 | | | | 2 | .45† | | | | 2 | .45† | | | | 0 | .65† | | | | 37,743 | | | | | 92 | | |
| 10-31-08 | | | 22 | .64 | | | | 0 | .19• | | | | (8 | .58) | | | | (8 | .39) | | | | 0 | .02 | | | | 3 | .35 | | | | — | | | | | 3 | .37 | | | | — | | | | | — | | | | | 10 | .88 | | | | (43 | .00) | | | | 2 | .28 | | | | 2 | .28† | | | | 2 | .27† | | | | 1 | .12† | | | | 85,873 | | | | | 23 | | |
| 10-31-07 | | | 21 | .07 | | | | 0 | .08• | | | | 3 | .66 | | | | 3 | .74 | | | | 0 | .03 | | | | 2 | .14 | | | | — | | | | | 2 | .17 | | | | — | | | | | — | | | | | 22 | .64 | | | | 19 | .03 | | | | 2 | .29 | | | | 2 | .29 | | | | 2 | .29 | | | | 0 | .39 | | | | 301,705 | | | | | 32 | | |
| 10-31-06 | | | 17 | .95 | | | | 0 | .04• | | | | 4 | .50 | | | | 4 | .54 | | | | 0 | .01 | | | | 1 | .41 | | | | — | | | | | 1 | .42 | | | | — | | | | | — | | | | | 21 | .07 | | | | 26 | .81 | | | | 2 | .30 | | | | 2 | .30 | | | | 2 | .30 | | | | 0 | .20 | | | | 368,952 | | | | | 25 | | |
| 10-31-05 | | | 16 | .58 | | | | 0 | .05 | | | | 2 | .23 | | | | 2 | .28 | | | | 0 | .11 | | | | 0 | .80 | | | | 0 | .00* | | | | 0 | .91 | | | | — | | | | | — | | | | | 17 | .95 | | | | 14 | .21(a) | | | | 2 | .30 | | | | 2 | .30 | | | | 2 | .30 | | | | 0 | .17 | | | | 411,071 | | | | | 21 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 10 | .95 | | | | 0 | .04• | | | | 0 | .18 | | | | 0 | .22 | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 11 | .06 | | | | 1 | .94 | | | | 2 | .34 | | | | 2 | .28† | | | | 2 | .28† | | | | 0 | .77† | | | | 241,841 | | | | | 47 | | |
| 10-31-09 | | | 10 | .79 | | | | 0 | .05• | | | | 1 | .85 | | | | 1 | .90 | | | | 0 | .24 | | | | 1 | .51 | | | | — | | | | | 1 | .75 | | | | 0 | .01 | | | | — | | | | | 10 | .95 | | | | 20 | .92(h) | | | | 2 | .45 | | | | 2 | .40† | | | | 2 | .40† | | | | 0 | .58† | | | | 279,060 | | | | | 92 | | |
| 10-31-08 | | | 22 | .52 | | | | 0 | .27 | | | | (8 | .57) | | | | (8 | .30) | | | | 0 | .08 | | | | 3 | .35 | | | | — | | | | | 3 | .43 | | | | — | | | | | — | | | | | 10 | .79 | | | | (42 | .94) | | | | 2 | .28 | | | | 2 | .18† | | | | 2 | .17† | | | | 1 | .34† | | | | 326,812 | | | | | 23 | | |
| 10-31-07 | | | 20 | .98 | | | | 0 | .08• | | | | 3 | .65 | | | | 3 | .73 | | | | 0 | .05 | | | | 2 | .14 | | | | — | | | | | 2 | .19 | | | | — | | | | | — | | | | | 22 | .52 | | | | 19 | .10 | | | | 2 | .29 | | | | 2 | .28 | | | | 2 | .28 | | | | 0 | .38 | | | | 757,941 | | | | | 32 | | |
| 10-31-06 | | | 17 | .91 | | | | 0 | .05 | | | | 4 | .46 | | | | 4 | .51 | | | | 0 | .03 | | | | 1 | .41 | | | | — | | | | | 1 | .44 | | | | — | | | | | — | | | | | 20 | .98 | | | | 26 | .71 | | | | 2 | .30 | | | | 2 | .30 | | | | 2 | .30 | | | | 0 | .20 | | | | 729,067 | | | | | 25 | | |
| 10-31-05 | | | 16 | .54 | | | | 0 | .04 | | | | 2 | .24 | | | | 2 | .28 | | | | 0 | .11 | | | | 0 | .80 | | | | 0 | .00* | | | | 0 | .91 | | | | — | | | | | — | | | | | 17 | .91 | | | | 14 | .25(a) | | | | 2 | .30 | | | | 2 | .30 | | | | 2 | .30 | | | | 0 | .15 | | | | 663,626 | | | | | 21 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 11 | .30 | | | | 0 | .11 | | | | 0 | .16 | | | | 0 | .27 | | | | 0 | .22 | | | | — | | | | | — | | | | | 0 | .22 | | | | — | | | | | — | | | | | 11 | .35 | | | | 2 | .36 | | | | 1 | .29 | | | | 1 | .29† | | | | 1 | .29† | | | | 1 | .81† | | | | 598,367 | | | | | 47 | | |
| 10-31-09 | | | 11 | .16 | | | | 0 | .16• | | | | 1 | .90 | | | | 2 | .06 | | | | 0 | .42 | | | | 1 | .51 | | | | — | | | | | 1 | .93 | | | | 0 | .01 | | | | — | | | | | 11 | .30 | | | | 22 | .23(h) | | | | 1 | .33 | | | | 1 | .33† | | | | 1 | .33† | | | | 1 | .65† | | | | 607,517 | | | | | 92 | | |
| 10-31-08 | | | 23 | .22 | | | | 0 | .47 | | | | (8 | .87) | | | | (8 | .40) | | | | 0 | .31 | | | | 3 | .35 | | | | — | | | | | 3 | .66 | | | | — | | | | | — | | | | | 11 | .16 | | | | (42 | .37) | | | | 1 | .28 | | | | 1 | .28† | | | | 1 | .27† | | | | 2 | .23† | | | | 735,622 | | | | | 23 | | |
| 10-31-07 | | | 21 | .58 | | | | 0 | .32• | | | | 3 | .74 | | | | 4 | .06 | | | | 0 | .28 | | | | 2 | .14 | | | | — | | | | | 2 | .42 | | | | — | | | | | — | | | | | 23 | .22 | | | | 20 | .31 | | | | 1 | .23 | | | | 1 | .23 | | | | 1 | .23 | | | | 1 | .45 | | | | 2,176,402 | | | | | 32 | | |
| 10-31-06 | | | 18 | .38 | | | | 0 | .25 | | | | 4 | .60 | | | | 4 | .85 | | | | 0 | .24 | | | | 1 | .41 | | | | — | | | | | 1 | .65 | | | | — | | | | | — | | | | | 21 | .58 | | | | 28 | .15 | | | | 1 | .22 | | | | 1 | .22 | | | | 1 | .22 | | | | 1 | .26 | | | | 1,728,560 | | | | | 25 | | |
| 10-31-05 | | | 16 | .96 | | | | 0 | .20 | | | | 2 | .31 | | | | 2 | .51 | | | | 0 | .29 | | | | 0 | .80 | | | | 0 | .00* | | | | 1 | .09 | | | | — | | | | | — | | | | | 18 | .38 | | | | 15 | .42(a) | | | | 1 | .23 | | | | 1 | .23 | | | | 1 | .23 | | | | 1 | .18 | | | | 1,221,594 | | | | | 21 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 11 | .30 | | | | 0 | .10• | | | | 0 | .17 | | | | 0 | .27 | | | | 0 | .22 | | | | — | | | | | — | | | | | 0 | .22 | | | | — | | | | | — | | | | | 11 | .35 | | | | 2 | .34 | | | | 1 | .34 | | | | 1 | .34† | | | | 1 | .34† | | | | 1 | .69† | | | | 22,231 | | | | | 47 | | |
07-20-09(4)–10-31-09 | | | 10 | .42 | | | | 0 | .01• | | | | 0 | .87 | | | | 0 | .88 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .30 | | | | 8 | .45 | | | | 1 | .33 | | | | 1 | .33† | | | | 1 | .33† | | | | 0 | .20† | | | | 3 | | | | | 92 | | |
ING International Value Choice Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .68 | | | | 0 | .03• | | | | 0 | .71 | | | | 0 | .74 | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 10 | .36 | | | | 7 | .71 | | | | 1 | .71 | | | | 1 | .70† | | | | 1 | .70† | | | | 0 | .53† | | | | 20,356 | | | | | 20 | | |
| 10-31-09 | | | 7 | .56 | | | | 0 | .06 | | | | 2 | .14 | | | | 2 | .20 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 9 | .68 | | | | 29 | .22 | | | | 1 | .83 | | | | 1 | .70† | | | | 1 | .70† | | | | 0 | .86† | | | | 15,615 | | | | | 44 | | |
| 10-31-08 | | | 14 | .89 | | | | 0 | .06 | | | | (5 | .31) | | | | (5 | .25) | | | | 0 | .10 | | | | 1 | .98 | | | | — | | | | | 2 | .08 | | | | — | | | | | — | | | | | 7 | .56 | | | | (40 | .21) | | | | 1 | .62 | | | | 1 | .65† | | | | 1 | .64† | | | | 0 | .52† | | | | 8,940 | | | | | 73 | | |
| 10-31-07 | | | 12 | .42 | | | | 0 | .10• | | | | 2 | .65 | | | | 2 | .75 | | | | 0 | .07 | | | | 0 | .21 | | | | — | | | | | 0 | .28 | | | | — | | | | | — | | | | | 14 | .89 | | | | 22 | .48 | | | | 1 | .63 | | | | 1 | .70 | | | | 1 | .70 | | | | 0 | .77 | | | | 16,598 | | | | | 88 | | |
| 10-31-06 | | | 10 | .70 | | | | 0 | .12• | | | | 1 | .86 | | | | 1 | .98 | | | | 0 | .10 | | | | 0 | .16 | | | | — | | | | | 0 | .26 | | | | — | | | | | — | | | | | 12 | .42 | | | | 18 | .82 | | | | 1 | .71 | | | | 1 | .70 | | | | 1 | .69 | | | | 1 | .04 | | | | 17,962 | | | | | 31 | | |
02-01-05(4)–10-31-05 | | | 10 | .00 | | | | 0 | .11• | | | | 0 | .59 | | | | 0 | .70 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 10 | .70 | | | | 7 | .00 | | | | 3 | .44 | | | | 1 | .70 | | | | 1 | .70 | | | | 1 | .08 | | | | 6,115 | | | | | 24 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .53 | | | | (0 | .01) | | | | 0 | .71 | | | | 0 | .70 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 10 | .22 | | | | 7 | .34 | | | | 2 | .46 | | | | 2 | .45† | | | | 2 | .45† | | | | (0 | .23)† | | | | 1,692 | | | | | 20 | | |
| 10-31-09 | | | 7 | .44 | | | | 0 | .02• | | | | 2 | .07 | | | | 2 | .09 | | | | 0 | .00* | | | | — | | | | | — | | | | | 0 | .00* | | | | — | | | | | — | | | | | 9 | .53 | | | | 28 | .13 | | | | 2 | .58 | | | | 2 | .45† | | | | 2 | .45† | | | | 0 | .18† | | | | 1,786 | | | | | 44 | | |
| 10-31-08 | | | 14 | .67 | | | | (0 | .03)• | | | | (5 | .22) | | | | (5 | .25) | | | | 0 | .00* | | | | 1 | .98 | | | | — | | | | | 1 | .98 | | | | — | | | | | — | | | | | 7 | .44 | | | | (40 | .63) | | | | 2 | .37 | | | | 2 | .40† | | | | 2 | .39† | | | | (0 | .27)† | | | | 1,738 | | | | | 73 | | |
| 10-31-07 | | | 12 | .27 | | | | 0 | .00•,* | | | | 2 | .61 | | | | 2 | .61 | | | | — | | | | | 0 | .21 | | | | — | | | | | 0 | .21 | | | | — | | | | | — | | | | | 14 | .67 | | | | 21 | .54 | | | | 2 | .38 | | | | 2 | .45 | | | | 2 | .45 | | | | 0 | .01 | | | | 3,805 | | | | | 88 | | |
| 10-31-06 | | | 10 | .65 | | | | 0 | .04• | | | | 1 | .82 | | | | 1 | .86 | | | | 0 | .08 | | | | 0 | .16 | | | | — | | | | | 0 | .24 | | | | — | | | | | — | | | | | 12 | .27 | | | | 17 | .77 | | | | 2 | .46 | | | | 2 | .45 | | | | 2 | .44 | | | | 0 | .35 | | | | 3,565 | | | | | 31 | | |
02-01-05(4)–10-31-05 | | | 10 | .00 | | | | 0 | .04• | | | | 0 | .61 | | | | 0 | .65 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 10 | .65 | | | | 6 | .50 | | | | 4 | .19 | | | | 2 | .45 | | | | 2 | .45 | | | | 0 | .36 | | | | 1,427 | | | | | 24 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
58
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
International Value Choice Fund (continued) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .56 | | | | (0 | .02) | | | | 0 | .73 | | | | 0 | .71 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 10 | .26 | | | | 7 | .42 | | | | 2 | .46 | | | | 2 | .45† | | | | 2 | .45† | | | | (0 | .19)† | | | | 5,008 | | | | | 20 | | |
| 10-31-09 | | | 7 | .46 | | | | 0 | .01• | | | | 2 | .09 | | | | 2 | .10 | | | | 0 | .00* | | | | — | | | | | — | | | | | 0 | .00* | | | | — | | | | | — | | | | | 9 | .56 | | | | 28 | .19 | | | | 2 | .58 | | | | 2 | .45† | | | | 2 | .45† | | | | 0 | .14† | | | | 4,091 | | | | | 44 | | |
| 10-31-08 | | | 14 | .70 | | | | (0 | .03)• | | | | (5 | .23) | | | | (5 | .26) | | | | — | | | | | 1 | .98 | | | | — | | | | | 1 | .98 | | | | — | | | | | — | | | | | 7 | .46 | | | | (40 | .62) | | | | 2 | .37 | | | | 2 | .40† | | | | 2 | .39† | | | | (0 | .25)† | | | | 2,267 | | | | | 73 | | |
| 10-31-07 | | | 12 | .29 | | | | 0 | .00* | | | | 2 | .62 | | | | 2 | .62 | | | | — | | | | | 0 | .21 | | | | — | | | | | 0 | .21 | | | | — | | | | | — | | | | | 14 | .70 | | | | 21 | .58 | | | | 2 | .38 | | | | 2 | .45 | | | | 2 | .45 | | | | 0 | .00* | | | | 4,930 | | | | | 88 | | |
| 10-31-06 | | | 10 | .66 | | | | 0 | .04• | | | | 1 | .83 | | | | 1 | .87 | | | | 0 | .08 | | | | 0 | .16 | | | | — | | | | | 0 | .24 | | | | — | | | | | — | | | | | 12 | .29 | | | | 17 | .78 | | | | 2 | .46 | | | | 2 | .45 | | | | 2 | .44 | | | | 0 | .33 | | | | 4,189 | | | | | 31 | | |
02-04-05(4)–10-31-05 | | | 10 | .01 | | | | 0 | .04• | | | | 0 | .61 | | | | 0 | .65 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 10 | .66 | | | | 6 | .49 | | | | 4 | .19 | | | | 2 | .45 | | | | 2 | .45 | | | | 0 | .35 | | | | 1,796 | | | | | 24 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .67 | | | | 0 | .05 | | | | 0 | .71 | | | | 0 | .76 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 10 | .35 | | | | 7 | .90 | | | | 1 | .34 | | | | 1 | .34† | | | | 1 | .34† | | | | 0 | .91† | | | | 29,772 | | | | | 20 | | |
| 10-31-09 | | | 7 | .57 | | | | 0 | .10• | | | | 2 | .12 | | | | 2 | .22 | | | | 0 | .12 | | | | — | | | | | — | | | | | 0 | .12 | | | | — | | | | | — | | | | | 9 | .67 | | | | 29 | .58 | | | | 1 | .39 | | | | 1 | .39† | | | | 1 | .39† | | | | 1 | .19† | | | | 27,654 | | | | | 44 | | |
| 10-31-08 | | | 14 | .92 | | | | 0 | .09 | | | | (5 | .30) | | | | (5 | .21) | | | | 0 | .16 | | | | 1 | .98 | | | | — | | | | | 2 | .14 | | | | — | | | | | — | | | | | 7 | .57 | | | | (39 | .96) | | | | 1 | .27 | | | | 1 | .30† | | | | 1 | .29† | | | | 0 | .80† | | | | 36,089 | | | | | 73 | | |
| 10-31-07 | | | 12 | .42 | | | | 0 | .17• | | | | 2 | .64 | | | | 2 | .81 | | | | 0 | .10 | | | | 0 | .21 | | | | — | | | | | 0 | .31 | | | | — | | | | | — | | | | | 14 | .92 | | | | 23 | .04 | | | | 1 | .24 | | | | 1 | .31 | | | | 1 | .31 | | | | 1 | .29 | | | | 60,413 | | | | | 88 | | |
12-21-05(4)–10-31-06 | | | 11 | .04 | | | | 0 | .16• | | | | 1 | .22 | | | | 1 | .38 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 12 | .42 | | | | 12 | .50 | | | | 1 | .36 | | | | 1 | .35 | | | | 1 | .34 | | | | 1 | .56 | | | | 36,899 | | | | | 31 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9 | .68 | | | | 0 | .07• | | | | 0 | .69 | | | | 0 | .76 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 10 | .36 | | | | 7 | .91 | | | | 1 | .46 | | | | 1 | .45† | | | | 1 | .45† | | | | 1 | .39† | | | | 35 | | | | | 20 | | |
06-01-09(4)–10-31-09 | | | 9 | .18 | | | | 0 | .01• | | | | 0 | .49 | | | | 0 | .50 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9 | .68 | | | | 5 | .45 | | | | 1 | .39 | | | | 1 | .39† | | | | 1 | .39† | | | | 0 | .30† | | | | 3 | | | | | 44 | | |
| |
ING Russia Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 29 | .53 | | | | (0 | .28) | | | | 6 | .52 | | | | 6 | .24 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 35 | .77 | | | | 21 | .13 | | | | 2 | .07 | | | | 2 | .07 | | | | 2 | .07 | | | | (1 | .69) | | | | 445,012 | | | | | 23 | | |
| 10-31-09 | | | 25 | .60 | | | | (0 | .19) | | | | 12 | .20 | | | | 12 | .01 | | | | — | | | | | 8 | .08 | | | | — | | | | | 8 | .08 | | | | — | | | | | — | | | | | 29 | .53 | | | | 65 | .55 | | | | 2 | .21 | | | | 2 | .21 | | | | 2 | .21 | | | | (0 | .98) | | | | 373,249 | | | | | 46 | | |
| 10-31-08 | | | 78 | .13 | | | | (0 | .48) | | | | (40 | .46) | | | | (40 | .94) | | | | — | | | | | 11 | .59 | | | | — | | | | | 11 | .59 | | | | — | | | | | 0 | .00* | | | | 25 | .60 | | | | (61 | .70) | | | | 2 | .06 | | | | 2 | .06 | | | | 2 | .06 | | | | (0 | .60) | | | | 261,127 | | | | | 43 | | |
| 10-31-07 | | | 55 | .81 | | | | (0 | .33)• | | | | 25 | .77 | | | | 25 | .44 | | | | — | | | | | 3 | .12 | | | | — | | | | | 3 | .12 | | | | — | | | | | 0 | .00* | | | | 78 | .13 | | | | 47 | .16 | | | | 1 | .96 | | | | 1 | .96 | | | | 1 | .96 | | | | (0 | .52) | | | | 922,504 | | | | | 12 | | |
| 10-31-06 | | | 33 | .49 | | | | (0 | .27) | | | | 22 | .37 | | | | 22 | .10 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 0 | .22 | | | | 55 | .81 | | | | 66 | .65 | | | | 1 | .98 | | | | 1 | .98 | | | | 1 | .98 | | | | (0 | .64) | | | | 751,947 | | | | | 20 | | |
| 10-31-05 | | | 25 | .01 | | | | (0 | .00)* | | | | 8 | .39 | | | | 8 | .39 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | 0 | .10 | | | | 33 | .49 | | | | 33 | .98 | | | | 2 | .13 | | | | 2 | .13 | | | | 2 | .13 | | | | (0 | .01) | | | | 271,603 | | | | | 26 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 29 | .54 | | | | (0 | .20)• | | | | 6 | .48 | | | | 6 | .28 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 35 | .82 | | | | 21 | .26 | | | | 1 | .67 | | | | 1 | .67 | | | | 1 | .67 | | | | (1 | .18) | | | | 7,451 | | | | | 23 | | |
09-30-09(4)–10-31-09 | | | 28 | .27 | | | | (0 | .04)• | | | | 1 | .31 | | | | 1 | .27 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 29 | .54 | | | | 4 | .49 | | | | 1 | .68 | | | | 1 | .68 | | | | 1 | .68 | | | | (1 | .68) | | | | 3 | | | | | 46 | | |
| |
ING Global Bond Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .25 | | | | 0 | .30• | | | | (0 | .21) | | | | 0 | .09 | | | | 0 | .51 | | | | 0 | .05 | | | | — | | | | | 0 | .56 | | | | — | | | | | — | | | | | 11 | .78 | | | | 0 | .75 | | | | 0 | .95 | | | | 0 | .90† | | | | 0 | .90† | | | | 5 | .05† | | | | 154,646 | | | | | 172 | | |
| 10-31-09 | | | 10 | .19 | | | | 0 | .32 | | | | 2 | .13 | | | | 2 | .45 | | | | 0 | .15 | | | | 0 | .24 | | | | — | | | | | 0 | .39 | | | | — | | | | | — | | | | | 12 | .25 | | | | 24 | .43 | | | | 1 | .06 | | | | 0 | .91† | | | | 0 | .91† | | | | 3 | .30† | | | | 103,255 | | | | | 396 | | |
| 10-31-08 | | | 10 | .59 | | | | 0 | .27• | | | | 0 | .07 | | | | 0 | .34 | | | | 0 | .62 | | | | 0 | .12 | | | | — | | | | | 0 | .74 | | | | — | | | | | — | | | | | 10 | .19 | | | | 3 | .04 | | | | 1 | .05 | | | | 0 | .93† | | | | 0 | .93† | | | | 2 | .53† | | | | 79,451 | | | | | 830 | | |
| 10-31-07 | | | 10 | .25 | | | | 0 | .31• | | | | 0 | .64 | | | | 0 | .95 | | | | 0 | .43 | | | | 0 | .18 | | | | — | | | | | 0 | .61 | | | | — | | | | | — | | | | | 10 | .59 | | | | 9 | .61 | | | | 1 | .46 | | | | 0 | .90† | | | | 0 | .90† | | | | 3 | .08 | | | | 28,887 | | | | | 858 | | |
06-30-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .08• | | | | 0 | .23 | | | | 0 | .31 | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 10 | .25 | | | | 3 | .13 | | | | 1 | .38 | | | | 0 | .90 | | | | 0 | .90 | | | | 2 | .41 | | | | 25,784 | | | | | 451 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .16 | | | | 0 | .25• | | | | (0 | .21) | | | | 0 | .04 | | | | 0 | .47 | | | | 0 | .05 | | | | — | | | | | 0 | .52 | | | | — | | | | | — | | | | | 11 | .68 | | | | 0 | .29 | | | | 1 | .70 | | | | 1 | .65† | | | | 1 | .65† | | | | 4 | .33† | | | | 4,546 | | | | | 172 | | |
| 10-31-09 | | | 10 | .16 | | | | 0 | .29 | | | | 2 | .07 | | | | 2 | .36 | | | | 0 | .12 | | | | 0 | .24 | | | | — | | | | | 0 | .36 | | | | — | | | | | — | | | | | 12 | .16 | | | | 23 | .56 | | | | 1 | .81 | | | | 1 | .66† | | | | 1 | .66† | | | | 2 | .59† | | | | 5,135 | | | | | 396 | | |
| 10-31-08 | | | 10 | .55 | | | | 0 | .18• | | | | 0 | .08 | | | | 0 | .26 | | | | 0 | .53 | | | | 0 | .12 | | | | — | | | | | 0 | .65 | | | | — | | | | | — | | | | | 10 | .16 | | | | 2 | .26 | | | | 1 | .80 | | | | 1 | .68† | | | | 1 | .68† | | | | 1 | .71 | | | | 4,085 | | | | | 830 | | |
| 10-31-07 | | | 10 | .24 | | | | 0 | .25• | | | | 0 | .62 | | | | 0 | .87 | | | | 0 | .38 | | | | 0 | .18 | | | | — | | | | | 0 | .56 | | | | — | | | | | — | | | | | 10 | .55 | | | | 8 | .74 | | | | 2 | .21 | | | | 1 | .65† | | | | 1 | .65† | | | | 2 | .44 | | | | 342 | | | | | 858 | | |
06-30-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .06• | | | | 0 | .22 | | | | 0 | .28 | | | | 0 | .04 | | | | — | | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 10 | .24 | | | | 2 | .84 | | | | 2 | .13 | | | | 1 | .65 | | | | 1 | .65 | | | | 2 | .00 | | | | 28 | | | | | 451 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .20 | | | | 0 | .25• | | | | (0 | .21) | | | | 0 | .04 | | | | 0 | .47 | | | | 0 | .05 | | | | — | | | | | 0 | .52 | | | | — | | | | | — | | | | | 11 | .72 | | | | 0 | .31 | | | | 1 | .70 | | | | 1 | .65† | | | | 1 | .65† | | | | 4 | .24† | | | | 68,239 | | | | | 172 | | |
| 10-31-09 | | | 10 | .20 | | | | 0 | .28• | | | | 2 | .08 | | | | 2 | .36 | | | | 0 | .12 | | | | 0 | .24 | | | | — | | | | | 0 | .36 | | | | — | | | | | — | | | | | 12 | .20 | | | | 23 | .48 | | | | 1 | .81 | | | | 1 | .66† | | | | 1 | .66† | | | | 2 | .54† | | | | 45,773 | | | | | 396 | | |
| 10-31-08 | | | 10 | .59 | | | | 0 | .18• | | | | 0 | .09 | | | | 0 | .27 | | | | 0 | .54 | | | | 0 | .12 | | | | — | | | | | 0 | .66 | | | | — | | | | | — | | | | | 10 | .20 | | | | 2 | .31 | | | | 1 | .80 | | | | 1 | .68† | | | | 1 | .68† | | | | 1 | .71† | | | | 29,009 | | | | | 830 | | |
| 10-31-07 | | | 10 | .24 | | | | 0 | .24• | | | | 0 | .64 | | | | 0 | .88 | | | | 0 | .35 | | | | 0 | .18 | | | | — | | | | | 0 | .53 | | | | — | | | | | — | | | | | 10 | .59 | | | | 8 | .90 | | | | 2 | .21 | | | | 1 | .65† | | | | 1 | .65† | | | | 2 | .33 | | | | 1,627 | | | | | 858 | | |
06-30-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .06• | | | | 0 | .22 | | | | 0 | .28 | | | | 0 | .04 | | | | — | | | | | — | | | | | 0 | .04 | | | | — | | | | | — | | | | | 10 | .24 | | | | 2 | .82 | | | | 2 | .13 | | | | 1 | .65 | | | | 1 | .65 | | | | 1 | .68 | | | | 36 | | | | | 451 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
59
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Global Bond Fund (continued) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .22 | | | | 0 | .31• | | | | (0 | .20) | | | | 0 | .11 | | | | 0 | .53 | | | | 0 | .05 | | | | — | | | | | 0 | .58 | | | | — | | | | | — | | | | | 11 | .75 | | | | 0 | .91 | | | | 0 | .63 | | | | 0 | .58† | | | | 0 | .58† | | | | 5 | .24† | | | | 197,597 | | | | | 172 | | |
| 10-31-09 | | | 10 | .21 | | | | 0 | .45• | | | | 2 | .04 | | | | 2 | .49 | | | | 0 | .24 | | | | 0 | .24 | | | | — | | | | | 0 | .48 | | | | — | | | | | — | | | | | 12 | .22 | | | | 24 | .94 | | | | 0 | .71 | | | | 0 | .56† | | | | 0 | .56† | | | | 3 | .89† | | | | 136,178 | | | | | 396 | | |
| 10-31-08 | | | 10 | .58 | | | | 0 | .28• | | | | 0 | .14 | | | | 0 | .42 | | | | 0 | .67 | | | | 0 | .12 | | | | — | | | | | 0 | .79 | | | | — | | | | | — | | | | | 10 | .21 | | | | 3 | .78 | | | | 0 | .74 | | | | 0 | .62† | | | | 0 | .62† | | | | 2 | .69 | | | | 503 | | | | | 830 | | |
| 10-31-07 | | | 10 | .25 | | | | 0 | .35• | | | | 0 | .63 | | | | 0 | .98 | | | | 0 | .47 | | | | 0 | .18 | | | | — | | | | | 0 | .65 | | | | — | | | | | — | | | | | 10 | .58 | | | | 9 | .88 | | | | 1 | .00 | | | | 0 | .61† | | | | 0 | .61† | | | | 3 | .47 | | | | 1 | | | | | 858 | | |
06-30-06(4)–10-31-06 | | | 10 | .00 | | | | 0 | .09• | | | | 0 | .23 | | | | 0 | .32 | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 10 | .25 | | | | 3 | .23 | | | | 1 | .03 | | | | 0 | .55 | | | | 0 | .55 | | | | 2 | .68 | | | | 1 | | | | | 451 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .06 | | | | 0 | .30• | | | | (0 | .20) | | | | 0 | .10 | | | | 0 | .51 | | | | 0 | .05 | | | | — | | | | | 0 | .56 | | | | — | | | | | — | | | | | 11 | .60 | | | | 0 | .84 | | | | 0 | .95 | | | | 0 | .90† | | | | 0 | .90† | | | | 5 | .11† | | | | 3,465 | | | | | 172 | | |
| 10-31-09 | | | 10 | .15 | | | | 0 | .37• | | | | 2 | .04 | | | | 2 | .41 | | | | 0 | .26 | | | | 0 | .24 | | | | — | | | | | 0 | .50 | | | | — | | | | | — | | | | | 12 | .06 | | | | 24 | .26 | | | | 1 | .06 | | | | 0 | .91† | | | | 0 | .91† | | | | 3 | .30† | | | | 3,126 | | | | | 396 | | |
06-04-08(4)–10-31-08 | | | 10 | .65 | | | | 0 | .10• | | | | (0 | .49) | | | | (0 | .39) | | | | 0 | .11 | | | | — | | | | | — | | | | | 0 | .11 | | | | — | | | | | — | | | | | 10 | .15 | | | | (3 | .70) | | | | 1 | .05 | | | | 0 | .93† | | | | 0 | .93† | | | | 2 | .47† | | | | 222 | | | | | 830 | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 12 | .06 | | | | 0 | .29• | | | | (0 | .18) | | | | 0 | .11 | | | | 0 | .53 | | | | 0 | .05 | | | | — | | | | | 0 | .58 | | | | — | | | | | — | | | | | 11 | .59 | | | | 0 | .89 | | | | 0 | .70 | | | | 0 | .65† | | | | 0 | .65† | | | | 5 | .09† | | | | 6,265 | | | | | 172 | | |
06-01-09(4)–10-31-09 | | | 11 | .22 | | | | 0 | .14• | | | | 1 | .03 | | | | 1 | .17 | | | | 0 | .33 | | | | — | | | | | — | | | | | 0 | .33 | | | | — | | | | | — | | | | | 12 | .06 | | | | 10 | .54 | | | | 0 | .71 | | | | 0 | .56† | | | | 0 | .56† | | | | 2 | .85† | | | | 1,533 | | | | | 396 | | |
| |
ING Diversified International Fund |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .27 | | | | 0 | .07 | | | | 0 | .48 | | | | 0 | .55 | | | | 0 | .07 | | | | — | | | | | — | | | | | 0 | .07 | | | | — | | | | | — | | | | | 8 | .75 | | | | 6 | .64 | | | | 0 | .63 | | | | 0 | .35 | | | | 0 | .35 | | | | 1 | .66 | | | | 117,516 | | | | | 23 | | |
| 10-31-09 | | | 7 | .30 | | | | 0 | .24• | | | | 1 | .59 | | | | 1 | .83 | | | | 0 | .86 | | | | — | | | | | — | | | | | 0 | .86 | | | | — | | | | | — | | | | | 8 | .27 | | | | 28 | .22 | | | | 0 | .76 | | | | 0 | .38 | | | | 0 | .38 | | | | 3 | .45 | | | | 129,966 | | | | | 32 | | |
| 10-31-08 | | | 14 | .98 | | | | 0 | .17• | | | | (7 | .50) | | | | (7 | .33) | | | | 0 | .26 | | | | 0 | .09 | | | | — | | | | | 0 | .35 | | | | — | | | | | — | | | | | 7 | .30 | | | | (50 | .04) | | | | 0 | .57 | | | | 0 | .31 | | | | 0 | .31 | | | | 1 | .41 | | | | 167,282 | | | | | 55 | | |
| 10-31-07 | | | 11 | .61 | | | | 0 | .05• | | | | 3 | .38 | | | | 3 | .43 | | | | 0 | .06 | | | | — | | | | | — | | | | | 0 | .06 | | | | — | | | | | — | | | | | 14 | .98 | | | | 29 | .66 | | | | 0 | .55 | | | | 0 | .21 | | | | 0 | .21 | | | | 0 | .37 | | | | 383,364 | | | | | 32 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | (0 | .03)• | | | | 1 | .64 | | | | 1 | .61 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .61 | | | | 16 | .10 | | | | 0 | .66 | | | | 0 | .35 | | | | 0 | .35 | | | | (0 | .35) | | | | 170,108 | | | | | 30 | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .23 | | | | 0 | .04 | | | | 0 | .47 | | | | 0 | .51 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 8 | .73 | | | | 6 | .21 | | | | 1 | .38 | | | | 1 | .10 | | | | 1 | .10 | | | | 0 | .86 | | | | 18,517 | | | | | 23 | | |
| 10-31-09 | | | 7 | .22 | | | | 0 | .17• | | | | 1 | .61 | | | | 1 | .78 | | | | 0 | .77 | | | | — | | | | | — | | | | | 0 | .77 | | | | — | | | | | — | | | | | 8 | .23 | | | | 27 | .46 | | | | 1 | .51 | | | | 1 | .13 | | | | 1 | .13 | | | | 2 | .43 | | | | 19,919 | | | | | 32 | | |
| 10-31-08 | | | 14 | .84 | | | | 0 | .07 | | | | (7 | .43) | | | | (7 | .36) | | | | 0 | .17 | | | | 0 | .09 | | | | — | | | | | 0 | .26 | | | | — | | | | | — | | | | | 7 | .22 | | | | (50 | .43) | | | | 1 | .32 | | | | 1 | .06 | | | | 1 | .06 | | | | 0 | .67 | | | | 20,167 | | | | | 55 | | |
| 10-31-07 | | | 11 | .54 | | | | (0 | .04) | | | | 3 | .35 | | | | 3 | .31 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 14 | .84 | | | | 28 | .68 | | | | 1 | .30 | | | | 0 | .96 | | | | 0 | .96 | | | | (0 | .34) | | | | 43,667 | | | | | 32 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | (0 | .10)• | | | | 1 | .64 | | | | 1 | .54 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .54 | | | | 15 | .40 | | | | 1 | .41 | | | | 1 | .10 | | | | 1 | .10 | | | | (1 | .10) | | | | 23,035 | | | | | 30 | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .21 | | | | 0 | .04 | | | | 0 | .47 | | | | 0 | .51 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 8 | .71 | | | | 6 | .17 | | | | 1 | .38 | | | | 1 | .10 | | | | 1 | .10 | | | | 0 | .86 | | | | 64,548 | | | | | 23 | | |
| 10-31-09 | | | 7 | .21 | | | | 0 | .17• | | | | 1 | .60 | | | | 1 | .77 | | | | 0 | .77 | | | | — | | | | | — | | | | | 0 | .77 | | | | — | | | | | — | | | | | 8 | .21 | | | | 27 | .32 | | | | 1 | .51 | | | | 1 | .13 | | | | 1 | .13 | | | | 2 | .54 | | | | 71,831 | | | | | 32 | | |
| 10-31-08 | | | 14 | .83 | | | | 0 | .07 | | | | (7 | .42) | | | | (7 | .35) | | | | 0 | .18 | | | | 0 | .09 | | | | — | | | | | 0 | .27 | | | | — | | | | | — | | | | | 7 | .21 | | | | (50 | .43) | | | | 1 | .32 | | | | 1 | .06 | | | | 1 | .06 | | | | 0 | .67 | | | | 78,834 | | | | | 55 | | |
| 10-31-07 | | | 11 | .54 | | | | (0 | .05)• | | | | 3 | .35 | | | | 3 | .30 | | | | 0 | .01 | | | | — | | | | | — | | | | | 0 | .01 | | | | — | | | | | — | | | | | 14 | .83 | | | | 28 | .63 | | | | 1 | .30 | | | | 0 | .96 | | | | 0 | .96 | | | | (0 | .39) | | | | 168,661 | | | | | 32 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | (0 | .10)• | | | | 1 | .64 | | | | 1 | .54 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .54 | | | | 15 | .40 | | | | 1 | .41 | | | | 1 | .10 | | | | 1 | .10 | | | | (1 | .10) | | | | 69,825 | | | | | 30 | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .26 | | | | 0 | .04• | | | | 0 | .52 | | | | 0 | .56 | | | | 0 | .09 | | | | — | | | | | — | | | | | 0 | .09 | | | | — | | | | | — | | | | | 8 | .73 | | | | 6 | .77 | | | | 0 | .36 | | | | 0 | .10 | | | | 0 | .10 | | | | 0 | .88 | | | | 9,045 | | | | | 23 | | |
| 10-31-09 | | | 7 | .30 | | | | 0 | .31• | | | | 1 | .55 | | | | 1 | .86 | | | | 0 | .90 | | | | — | | | | | — | | | | | 0 | .90 | | | | — | | | | | — | | | | | 8 | .26 | | | | 28 | .78 | | | | 0 | .48 | | | | 0 | .10 | | | | 0 | .10 | | | | 4 | .55 | | | | 3,209 | | | | | 32 | | |
| 10-31-08 | | | 14 | .99 | | | | 0 | .21 | | | | (7 | .53) | | | | (7 | .32) | | | | 0 | .28 | | | | 0 | .09 | | | | — | | | | | 0 | .37 | | | | — | | | | | — | | | | | 7 | .30 | | | | (49 | .97) | | | | 0 | .32 | | | | 0 | .06 | | | | 0 | .06 | | | | 1 | .69 | | | | 16 | | | | | 55 | | |
| 10-31-07 | | | 11 | .63 | | | | 0 | .03• | | | | 3 | .41 | | | | 3 | .44 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 14 | .99 | | | | 29 | .69 | | | | 0 | .30 | | | | 0 | .09 | | | | 0 | .09 | | | | 0 | .21 | | | | 32 | | | | | 32 | | |
12-21-05(4)–10-31-06 | | | 10 | .00 | | | | (0 | .01)• | | | | 1 | .64 | | | | 1 | .63 | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 11 | .63 | | | | 16 | .30 | | | | 0 | .45 | | | | 0 | .10 | | | | 0 | .10 | | | | (0 | .13) | | | | 4 | | | | | 30 | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .24 | | | | 0 | .07 | | | | 0 | .48 | | | | 0 | .55 | | | | 0 | .09 | | | | — | | | | | — | | | | | 0 | .09 | | | | — | | | | | — | | | | | 8 | .70 | | | | 6 | .70 | | | | 0 | .63 | | | | 0 | .25 | | | | 0 | .25 | | | | 1 | .56 | | | | 2,621 | | | | | 23 | | |
| 10-31-09 | | | 7 | .29 | | | | 0 | .10• | | | | 1 | .74 | | | | 1 | .84 | | | | 0 | .89 | | | | — | | | | | — | | | | | 0 | .89 | | | | — | | | | | — | | | | | 8 | .24 | | | | 28 | .45 | | | | 0 | .76 | | | | 0 | .38 | | | | 0 | .38 | | | | 1 | .30 | | | | 1,911 | | | | | 32 | | |
06-04-08(4)–10-31-08 | | | 12 | .99 | | | | 0 | .02• | | | | (5 | .72) | | | | (5 | .70) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 7 | .29 | | | | (43 | .88) | | | | 0 | .57 | | | | 0 | .31 | | | | 0 | .31 | | | | 0 | .48 | | | | 140 | | | | | 55 | | |
Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .18 | | | | 0 | .06 | | | | 0 | .47 | | | | 0 | .53 | | | | 0 | .05 | | | | — | | | | | — | | | | | 0 | .05 | | | | — | | | | | — | | | | | 8 | .66 | | | | 6 | .52 | | | | 0 | .88 | | | | 0 | .60 | | | | 0 | .60 | | | | 1 | .33 | | | | 196 | | | | | 23 | | |
| 10-31-09 | | | 7 | .22 | | | | 0 | .20 | | | | 1 | .60 | | | | 1 | .80 | | | | 0 | .84 | | | | — | | | | | — | | | | | 0 | .84 | | | | — | | | | | — | | | | | 8 | .18 | | | | 28 | .13 | | | | 1 | .01 | | | | 0 | .63 | | | | 0 | .63 | | | | 2 | .94 | | | | 198 | | | | | 32 | | |
| 10-31-08 | | | 14 | .82 | | | | 0 | .15 | | | | (7 | .44) | | | | (7 | .29) | | | | 0 | .22 | | | | 0 | .09 | | | | — | | | | | 0 | .31 | | | | — | | | | | — | | | | | 7 | .22 | | | | (50 | .18) | | | | 0 | .82 | | | | 0 | .56 | | | | 0 | .56 | | | | 1 | .26 | | | | 183 | | | | | 55 | | |
12-12-06(4)–10-31-07 | | | 12 | .19 | | | | (0 | .05)• | | | | 2 | .76 | | | | 2 | .71 | | | | 0 | .08 | | | | — | | | | | — | | | | | 0 | .08 | | | | — | | | | | — | | | | | 14 | .82 | | | | 22 | .33 | | | | 0 | .80 | | | | 0 | .46 | | | | 0 | .46 | | | | (0 | .46) | | | | 432 | | | | | 32 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
60
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Income
| | | | | | | | | | | | | | | | | | |
| | | | | (loss)
| | | | | | | | | | | | | | | | | | |
| | | | | from
| | | | | | | | | | | | | | | | | | |
| | | | | investment
| | | | | | | | | | | | | | | | | | Supplemental
|
| | | | | operations | | | | Less distributions | | | | | | | | | | | | Ratios to average net assets | | Data |
| | | Net
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | asset
| | | | Net
| | | | | | | | | | | | | | | | Net
| | | | | | Expenses net of
| | | | | | | | |
| | | value,
| | | | realized
| | Total
| | | | | | | | | | | | | | asset
| | | | Expenses
| | fee waivers
| | Expenses net of
| | | | Net assets,
| | |
| | | beginning
| | Net
| | and
| | from
| | From net
| | | | | | | | | | Redemption
| | value,
| | | | before
| | and/or
| | all
| | Net investment
| | end
| | Portfolio
|
| | | of year
| | investment
| | unrealized
| | investment
| | investment
| | From net
| | From return of
| | Total
| | Payment
| | fees applied
| | end of
| | Total
| | reductions/
| | recoupments,
| | reductions/
| | income
| | of year or
| | turnover
|
| | | or period | | income (loss) | | gain (loss) | | operations | | income | | realized gains | | capital | | distributions | | by affiliate | | to capital | | year or period | | Return(1) | | additions(2) | | if any(2)(3) | | additions(2)(3) | | (loss)(2)(3) | | period | | rate |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | (%) | | (%) | | (%) | | ($000’s) | | (%) |
ING Diversified International Fund (continued) |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8 | .25 | | | | 0 | .08 | | | | 0 | .48 | | | | 0 | .56 | | | | 0 | .10 | | | | — | | | | | — | | | | | 0 | .10 | | | | — | | | | | — | | | | | 8 | .71 | | | | 6 | .83 | | | | 0 | .38 | | | | (0 | .00)* | | | | (0 | .00)* | | | | 1 | .92 | | | | 2,655 | | | | | 23 | | |
| 10-31-09 | | | 7 | .29 | | | | 0 | .21• | | | | 1 | .65 | | | | 1 | .86 | | | | 0 | .90 | | | | — | | | | | — | | | | | 0 | .90 | | | | — | | | | | — | | | | | 8 | .25 | | | | 28 | .84 | | | | 0 | .48 | | | | 0 | .10 | | | | 0 | .10 | | | | 2 | .96 | | | | 2,545 | | | | | 32 | | |
02-12-08(4)–10-31-08 | | | 12 | .17 | | | | 0 | .06• | | | | (4 | .94) | | | | (4 | .88) | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 7 | .29 | | | | (40 | .10) | | | | 0 | .32 | | | | 0 | .06 | | | | 0 | .06 | | | | 0 | .80 | | | | 1,506 | | | | | 55 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| (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. |
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| (2) | | Annualized for periods less than one year. |
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| (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 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/additions represent the net expenses paid by a Fund. Net investment income (loss) is net of all such additions or reductions. |
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| (4) | | Commencement of operations. |
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| (5) | | Class W shares’ financial highlights include Class Q shares which were converted to Class W on March 5, 2010. Class W shares will retain the commencement of operations date of August 7, 2009 which represents the original commencement of operations date of Class Q shares. |
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| † | | 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. |
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| * | | Amount is more than $(0.005) or more than (0.005)% or less than $0.005 or less than 0.005%. |
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| ** | | Amount is less than $500. |
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| • | | Calculated using average number of shares outstanding throughout the period. |
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| (a) | | There was no impact on total return by the affiliate payment. |
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| (b) | | Effective November 1, 2004, the Fund adopted a policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the twelve months ended October 31, 2005 was to decrease the net investment income per share by $0.12 for Class A, $0.10 for Class B, $0.11 for Class C and $0.30 for Class I, increase net realized and unrealized gain on investments per share by $0.12 for Class A, $0.10 for Class B, $0.11 for Class C and $0.30 for Class I and decrease the ratio of net investment income to average net assets from 2.31% to 1.58% for Class A, 1.51% to 0.79% for Class B, 1.51% to 0.78% for Class C and 2.60% to 0.85% for Class I. |
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| (c) | | In 2005, 0.26% for Class A, 0.26% for Class B and 0.27% for Class C of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.50% for Class A, 20.61% for Class B and 20.56% for Class C. |
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| (d) | | In 2005, 0.34% for Class A, 0.33% for Class B and 0.36% for Class C of the total return consists of payment by affiliate. Excluding this item, total return would have been 28.63%, 27.82% and 27.80% on Class A, Class B and Class C, respectively. |
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| (e) | | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, Emerging Countries total return would have been 50.54%, 49.21%, 49.19%, 51.26% and 51.22% on Classes A,B,C,I and W, respectively. |
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| (f) | | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, Index Plus International Equity total return would have been 26.91%, 25.92%, 25.96% and 27.32% on Classes A,B,C and I, respectively. |
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| (g) | | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, International SmallCap Multi-Manager total return would have been 41.91%, 40.78%, 40.97%, 42.75%, 42.20% and 42.70% on Classes A,B,C,I,O and W, respectively. |
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| (h) | | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, International Value total return would have been 21.64%, 20.80%, 20.81% and 22.12% on Classes A,B,C and I, respectively. |
See Accompanying Notes to Financial Statements
61
NOTE 1 — ORGANIZATION
Organization. The ING Funds included in this report are comprised of ING Mutual Funds (“IMF”) and ING Mayflower Trust (“IMT”) (each a “Registrant” and collectively, the “Registrants”); both are organized as open-end investment management companies registered under the Investment Company Act of 1940, as amended (“1940 Act”).
IMF is a Delaware statutory trust organized December 18, 1992 with seventeen separate active series, all of which are included in this report, (each, a “Fund” and collectively, the “IMF Funds”): Global Equity Dividend, Global Natural Resources, Global Real Estate, Global Value Choice, Asia-Pacific Real Estate, Emerging Countries, European Real Estate, Foreign, Greater China, Index Plus International Equity, International Capital Appreciation, International Real Estate, International SmallCap Multi-Manager, International Value Choice, Russia, Global Bond and Diversified International. IMT is a Massachusetts business trust organized August 18, 1993 with one series, International Value (a “Fund” and together with the IMF Funds, the “Funds”). The investment objective of each Fund is described in the Funds’ prospectuses, each dated February 28, 2010.
Each Fund offers at least one or more of the following classes of shares: Class A, Class B, Class C, Class I, Class O, Class R and Class W. The separate classes of shares differ principally in the applicable sales charges (if any), distribution fees and shareholder servicing fees and transfer agent fees. Generally, shareholders of each class also bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the 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. Common expenses of the Funds (including custodial asset-based fees, legal and audit fees, printing and mailing expenses, transfer agency out-of-pocket expenses, and fees and expenses of the independent trustees) are allocated to each Fund in proportion to its average net assets. Expenses directly attributable to a particular fund (including advisory, administration, custodial transaction-based, registration, other professional, distribution and/or service fees, certain taxes, and offering costs) are charged directly to that Fund. Differences in per share dividend rates generally result from the differences in separate class expenses, including distribution and shareholder servicing fees.
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 the Funds; 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. Class B shares, along with their pro rata reinvested dividend shares, automatically convert to Class A shares eight years after purchase.
Emerging Countries does not impose any front-end sales charge (load) on purchases of Class A shares of Emerging Countries by its former Class M shareholders for the life of their account.
On September 10, 2009, the Board approved a proposal to create Class W shares of International Capital Appreciation and to convert existing Class Q shares into Class W shares. Effective March 5, 2010, Class Q shares were converted into Class W shares. As a result, references to Class W shares of International Capital Appreciation prior to March 5, 2010 represent Class Q shares.
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. For all Funds except Russia and Diversified International, investments in equity securities traded on a national securities exchange are valued at the last reported sale price. Securities reported by 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, securities traded in the over-the-counter-market, gold and silver bullion, platinum and palladium 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
62
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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. Investments in securities maturing 60 days or less from date of acquisition are valued at amortized cost which approximates market 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, and as determined in good faith by or under the supervision of the Funds’ 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 next net asset value (“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 a Fund’s Board, in accordance with methods that are specifically authorized by the Board. The valuation techniques applied in any specific instance are likely to vary from case to case. With respect to a restricted security, for example, consideration is generally given to the cost of the investment, the market value of any unrestricted securities of the same class at the time of valuation, the potential expiration of restrictions on the security, the existence of any registration rights, the costs to a Fund related to registration of the security, as well as factors relevant to the issuer itself. Consideration may also be given to the price and extent of any public trading in similar securities of the issuer or comparable companies’ securities.
For all Funds the value of a foreign security traded on an exchange outside the United States is generally based on its price on the principal foreign exchange where it trades as of the time a Fund determines its NAV or if the foreign exchange closes prior to the time the Fund determines its NAV, the most recent closing price of the foreign security on its principal exchange. Trading in certain non-U.S. securities may not take place on all days on which the New York Stock Exchange (“NYSE”) is open. Further, trading takes place in various foreign markets on days on which the NYSE is not open. Consequently, the calculation of a Fund’s NAV may not take place contemporaneously with the determination of the prices of securities held by a Fund in foreign securities markets. Further, the value of a Fund’s assets may be significantly affected by foreign trading on days when a shareholder cannot purchase or redeem shares of the Fund. In calculating a Fund’s NAV, foreign securities in foreign currency are converted to U.S. dollar equivalents.
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 next 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 the Funds’ 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
63
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
securities do not represent readily available reliable market 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.
For the Russia Fund, the valuation procedures for Russian equity securities are to price local shares according to the most recent available bid prices. If securities are not listed on the Russian Trade System (the “RTS”) or on any other pricing service that lists available bid quotes, then the mean of at least two broker bid quotes is used. For equity securities of an issuer in Russia for which there are no readily available reliable market value quotations, the following benchmark pricing procedure shall apply on any day on which the largest securities exchange in Russia declines by 2.5% or more; the price of the security shall be adjusted by the amount of the downward change in a composite of the other companies that are publicly traded in the same sector as the issuer, if ascertainable, and if not ascertainable, by the amount of downward change in the RTS.
For Diversified International and other Funds with holdings in open end investment companies, the valuations of the Funds’ investments in Underlying Funds are based on the NAVs of the Underlying Funds each business day. In general, assets of the Underlying Funds are valued based on actual or estimated market value, with special provisions for assets not having readily available market quotations and short-term debt securities, and for situations where market quotations are deemed unreliable. Investments held in Underlying Funds maturing in 60 days or less from the date of acquisition are valued at amortized cost which generally approximates market value. Securities prices may be obtained from automated pricing services. Shares of investment companies held by the Underlying Funds will generally be valued at the latest NAV reported by that investment company.
Fair value is defined as the price that the Funds 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 adviser’s or 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 Portfolios of Investments.
For the six months ended April 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, net of any applicable withholding tax, 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.
For Diversified International, capital gain dividends from Underlying Funds, if any, are recorded as distributions of realized gains from affiliated Underlying Funds.
Global Real Estate estimates components of distributions from real estate investment trusts (“REITs”). Distributions received in excess of income are recorded as a reduction of cost of the related investments. If the Funds no longer own the applicable securities, any distributions received in excess of income are recorded as realized gains.
C. Foreign Currency Translation. The books and records of the Funds and Underlying 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. |
64
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
| | |
| | (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 and Underlying 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 value. Upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies and 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. The foregoing risks are even greater with respect to securities of issuers in emerging markets.
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 they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.
Market Risk Factors. In pursuit of their 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 maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
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 market. In instances where the Funds are using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Funds, 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
65
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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 derivative and the Funds. Associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their 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 intend 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 April 30, 2010, the maximum amount of loss that Global Bond would incur if the counterparties to its derivative transactions failed to perform would be $2,457,938 which represents the gross payments to be received by the Fund on open swap transactions and forward foreign currency contracts were they to be unwound as of April 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 a Fund’s net assets and or a percentage decrease in a Fund’s NAV, which could cause a Fund to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Funds Master Agreements.
As of April 30, 2010, Global Bond had a net liability position of $3,770,994 on interest rate swaps and forward foreign currency contracts with credit related contingent features. If a contingent feature would have been triggered as of April 30, 2010, Global Bond could have been required to pay this amount in cash to its counterparties. As of April 30, 2010, Global Bond had posted $30,000 to its counterparties in cash collateral for its open derivatives transactions.
E. Forward Foreign Currency Transactions and Futures Contracts. Each Fund and Underlying Fund may enter into forward foreign currency exchange transactions to convert to and from different foreign currencies and to and from the U.S. dollar, generally in connection with the planned purchases or sales of securities. The Funds and Underlying Funds either enter into these transactions on
66
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
a spot basis at the spot rate prevailing in the foreign currency exchange market or may 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 April 30, 2010, certain Funds have 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 Funds use forward foreign currency contracts to enhance potential gain, hedge against anticipated currency exchange rates, and to maintain diversity and liquidity of the portfolio.
During the six months ended April 30, 2010, the following Funds had average contract amounts on forward foreign currency contracts to buy and sell as disclosed below:
| | | | | | | | | |
| | | Buy | | Sell |
| |
| Global Equity Dividend | | $ | — | | | $ | 189,311 | |
| Global Real Estate | | | 1,247,970 | | | | — | |
| Global Value Choice | | | — | | | | 107,674 | |
| Asia-Pacific Real Estate | | | 19,386 | | | | — | |
| Foreign | | | 13,583,192 | | | | 17,403,681 | |
| International Real Estate | | | 529,101 | | | | — | |
| Global Bond | | | 286,976,463 | | | | 208,446,272 | |
Each Fund and Underlying Fund may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. Each Fund and Underlying Fund intends to limit its use of futures contracts and futures options to “bona fide hedging” transactions, as such term is defined in applicable regulations, interpretations and practice. 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 or an Underlying 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 or an Underlying 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 margin and are recorded as unrealized gains or losses by the Fund or an Underlying Fund. When the contract is closed, the Fund or Underlying 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 period ended April 30, 2010, Foreign purchased futures contracts on various equity indices to increase exposure to equity risk. Global Bond has both purchased and sold futures contracts on various bonds and notes to increase or decrease exposure to interest rate risk. 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.
During the six months ended April 30, 2010, the following Funds had average market values on futures contracts purchased and sold as disclosed below:
| | | | | | | | | |
| | | Purchased | | Sold |
| |
| Foreign | | $ | 3,219,764 | | | $ | — | |
| Global Bond | | $ | 109,632,710 | | | $ | 97,412,246 | |
F. Options Contracts. The Funds may write call and put options on futures, swaps (“swaptions”), securities, commodities or foreign 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. A 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
67
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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 period ended April 30, 2010, Global Bond has both purchased and written options on foreign currencies to increase or decrease exposure to foreign exchange rate risk. Please refer to Note 10 for the volume of both purchased and written option activity for Global Bond during the six months ended April 30, 2010.
G. Swap Agreements. Certain Funds 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 Portfolio of Investments.
Swaps are marked to market daily using quotations primarily from third party pricing services, counterparties or brokers. The value of the swap contract is recorded on each Fund’s Statement of Assets and Liabilities. During the term of the swap, changes in the value of the swap, if any, are recorded as unrealized gains or losses on the Statement of Operations. Upfront payments paid or received by a Fund when entering into the agreements are reported on the Statement of Assets and Liabilities and as a component of the changes in unrealized gains or losses on the Statement 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 Statement 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 Statement 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).
68
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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Certain Funds 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, 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 market value of credit default swap agreements on corporate issues or sovereign issues are disclosed in each Fund’s Portfolio of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swaps on asset-backed securities or credit indices, the quoted market prices and resulting market values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market 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 April 30, 2010, for which a Fund is seller of protection, are disclosed following each Fund’s 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 April 30, 2010, Global Bond has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual securities and to hedge against anticipated potential credit events.
For the six months ended April 30, 2010, Global 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.
For the six months ended April 30, 2010, Global Bond had average notional amounts of $9,000,000 and $2,948,500 on credit default swaps to buy protection and credit default swaps to sell protection, respectively.
Interest Rate Swap Agreements. Certain Funds are subject to interest risk exposure in the normal course of pursuing their investment objectives. Because the Funds hold fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain their ability to generate income at prevailing market rates, the Funds may enter into interest rate swap agreements.
For the six months ended April 30, 2010, Global Bond has entered into interest rate swaps in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk.
69
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
For the six months ended April 30, 2010, Global Bond had an average notional amount of $109,641,500 on interest rate swaps.
Cross-Currency Swap Agreements. Cross-currency swaps are interest rate swaps in which interest cash flows are exchanged between two parties based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Cross-currency swaps also involve the exchange of the notional amounts at the start of the contract at the current spot rate with an agreement to re-exchange such amounts at a later date at either the same exchange rate, a specified rate or the then current spot rate. The entire principal value of a cross-currency swap is subject to the risk that the counterparty to the swap will default on its contractual delivery obligations.
For the six months ended April 30, 2010, Global Bond has entered into cross-currency swaps to increase exposure to foreign exchange risk.
For the six months ended April 30, 2010, Global Bond had an average notional amount of $6,632,100 on cross-currency swaps.
H. Distributions to Shareholders. The Funds record distributions to their shareholders on ex-dividend date. Each Fund pays dividends and capital gains, if any, annually (except, Global Equity Dividend, Global Real Estate, Asia-Pacific Real Estate, European Real Estate, International Equity Dividend and International Real Estate, which pay dividends, if any, quarterly and Global Bond, which pay dividends, if any, monthly). The Funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. 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.
I. Federal Income Taxes. It is the policy of each Fund 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 its net investment income and any net realized capital gains to its 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.
The Funds may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain.
J. 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.
K. Repurchase Agreements. Each Fund and Underlying 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 usually short, from overnight to one week, while the underlying securities generally have longer maturities. Each Fund and Underlying 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 the Fund or Underlying 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 the Fund or Underlying Fund in the event the Fund or Underlying Fund is delayed or prevented from exercising its right to dispose of the collateral, and it might incur disposition costs in liquidating the collateral.
L. Securities Lending. Each Fund and Underlying Fund has the option to temporarily loan up to 331/3% 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, each Fund and Underlying Fund has the right to use collateral to offset losses incurred. There would be potential loss to a Fund or Underlying Fund in the event the Fund or
70
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
Underlying Fund is delayed or prevented from exercising its right to dispose of the collateral. Each Fund and Underlying 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 or Underlying Fund.
M. Illiquid and Restricted Securities. Each Fund and Underlying Fund may not invest more than 15% of its 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 and Underlying Funds to sell them promptly at an acceptable price. Each Fund and Underlying Fund may also invest in restricted securities which include those sold under Rule 144A of the Securities Act of 1933 (“1933 Act”) or securities offered pursuant to Section 4(2) of the 1933 Act, and/or 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. 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 in good faith under procedures approved by the Board.
N. Delayed-Delivery or When-Issued Transaction. The Funds and Underlying Funds may purchase or sell securities on a when-issued or forward commitment basis. The price of the 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 these securities is identified in each Fund’s Portfolio of 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 and Underlying Funds are required to segregate liquid assets sufficient to cover the purchase price.
O. Indemnifications. In the normal course of business, each Trust may enter into contracts that provide certain indemnifications. Each 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, management believes based on experience, the risk of loss from such claims is considered remote.
NOTE 3 — INVESTMENT TRANSACTIONS
For the six months ended April 30, 2010, the cost of purchases and the proceeds from the sales of securities, excluding U.S. government and short-term securities, were as follows:
| | | | | | | | | |
| | | Purchases | | Sales |
| |
| Global Equity Dividend | | $ | 32,759,321 | | | $ | 41,460,318 | |
| Global Natural Resources | | | 36,812,173 | | | | 40,555,665 | |
| Global Real Estate | | | 1,034,470,745 | | | | 615,375,230 | |
| Global Value Choice | | | 148,263,079 | | | | 44,901,120 | |
| Asia-Pacific Real Estate | | | 3,861,961 | | | | 3,413,928 | |
| Emerging Countries | | | 70,104,869 | | | | 55,058,759 | |
| European Real Estate | | | 2,651,995 | | | | 4,911,047 | |
| Foreign | | | 118,649,515 | | | | 196,606,696 | |
| Greater China | | | 19,272,761 | | | | 21,561,172 | |
| Index Plus International Equity | | | 69,676,791 | | | | 75,191,818 | |
| International Capital Appreciation | | | 23,681,236 | | | | 45,784,868 | |
| International Real Estate | | | 214,496,937 | | | | 208,041,330 | |
| International SmallCap Multi-Manager | | | 178,439,768 | | | | 196,298,095 | |
| International Value | | | 739,192,199 | | | | 927,332,555 | |
| International Value Choice | | | 10,281,256 | | | | 9,920,356 | |
| Russia | | | 90,830,259 | | | | 92,603,638 | |
| Global Bond | | | 222,155,529 | | | | 160,719,598 | |
| Diversified International | | | 52,591,304 | | | | 82,304,741 | |
Purchases and sales of long-term U.S. government securities not included above were as follows:
| | | | | | | | | |
| | | Purchases | | Sales |
| |
| Global Bond | | $ | 435,807,199 | | | $ | 403,204,730 | |
NOTE 4 — REDEMPTION FEES
A 2% redemption fee is charged on shares of Russia that are redeemed (including in connection with an exchange) within 365 days or less from their date of purchase. The redemption fee is recorded as an addition to paid-in capital. Total redemption fee proceeds for the six months ended April 30, 2010 and year ended October 31, 2009 were $169,526 and $262,776, respectively, and are set forth in the Statements of Changes in Net Assets.
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
Each of the Funds has entered into an investment management agreement (“Management Agreements”) with ING Investments, LLC (“ING Investments” or “Investment Adviser”). The Management Agreements compensate the
71
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
Investment Adviser with a fee based on the average daily net assets of each Fund, at the following annual rates:
| | | |
| | | As a Percentage of Average
|
| | | Daily Net Assets |
| |
| Global Equity Dividend | | 0.70% |
| Global Natural Resources | | 1.00% on first $50 million; and 0.75% thereafter |
| Global Real Estate | | 0.80% on the first $250 million; 0.775% on the next $250 million; and 0.70% thereafter |
| Global Value Choice | | 0.90% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter |
| Asia-Pacific Real Estate | | 1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% thereafter |
| Emerging Countries(1) | | 1.25% |
| European Real Estate | | 1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% thereafter |
| Foreign(1) | | 1.00% on the first $500 million; and 0.90% thereafter |
| Greater China | | 1.15% on the first $100 million; 1.05% on the next $150 million; and 0.95% thereafter |
| Index Plus International Equity | | 0.55% |
| International Capital Appreciation(1) | | 0.85% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter |
| International Real Estate | | 1.00% on the first $250 million; 0.90% on the next $250 million; and 0.80% thereafter |
International SmallCap
Multi-Manager(1) | | 1.00% on first $500 million;
0.90% on next $500 million; and
0.85% thereafter |
| International Value | | 1.00% on the first $5 billion; 0.95% on the next $2.5 billion; 0.90% on the next $2.5 billion; and 0.85% of assets in excess of $10 billion (applied to all assets of the Fund) |
| International Value Choice | | 1.00% |
| Russia | | 1.25% |
| Global Bond | | 0.40% |
| Diversified International | | 0.00% |
| |
| (1) | ING Investments has contractually agreed to waive a portion of the advisory fee for Emerging Countries, Foreign, International Capital Appreciation and International SmallCap Multi-Manager. These advisory fee waivers will continue through at least March 1, 2011 for Emerging Countries, Foreign, International Capital Appreciation and International SmallCap Multi-Manager. There is no guarantee that these waivers will continue after this date. These agreements will only renew if ING Investments elects to renew them. |
ING Investments has contractually agreed to waive a portion of the advisory fee for Emerging Countries, Foreign, International Capital Appreciation and International SmallCap Multi-Manager. The waiver is calculated as 50% of the difference between the former sub-advisory fee minus the new sub-advisory fee.
For the six months ended April 30, 2010, ING Investments waived $109,286, $29,559, $26,594 and $35,421 in advisory fees for Emerging Countries, Foreign, International Capital Appreciation and International SmallCap Multi-Manager, respectively.
Each of the Funds has entered into a sub-advisory agreement with each sub-adviser. These sub-advisers provide investment advice for the various Funds and are paid by the Investment Adviser based on the average daily net assets of the respective Funds. The sub-adviser of each of the Funds is as follows (*denotes a related party adviser):
| | | |
Fund | | Sub Adviser |
| |
| Global Equity Dividend Fund | | ING Investment Management Advisors B.V* |
| Emerging Countries | | ING Investment Management Advisors B.V* |
| Index Plus International Equity | | ING Investment Management Advisors B.V* |
| Russia | | ING Investment Management Advisors B.V* |
| Asia-Pacific Real Estate | | ING Clarion Real Estate Securities LLC* |
| European Real Estate | | ING Clarion Real Estate Securities LLC* |
| Global Real Estate | | ING Clarion Real Estate Securities LLC* |
| International Real Estate | | ING Clarion Real Estate Securities LLC* |
| Global Value Choice | | Tradewinds Global Investors, LLC |
| International Value Choice | | Tradewinds Global Investors, LLC |
| International Value | | Brandes Investment Partners, L.P. and ING Investment Management Co.* |
| Foreign | | Artio Global Investment Management LLC |
| Global Natural Resources | | ING Investment Management Co.* |
| Global Bond | | ING Investment Management Co.* |
| International SmallCap Multi-Manager | | Acadian Asset Management LLC and Schroder Investment Management North America, Inc. |
| Greater China | | ING Investment Management Asia/Pacific (Hong Kong) Limited* |
| International Capital Appreciation | | Hansberger Global Investors, Inc. |
For Diversified International, ING Investment Management Co. (the “Consultant” or “ING IM”) is a consultant to the Investment Adviser. The Consultant provides tactical allocation recommendations to the Investment Adviser. The Investment Adviser has set
72
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
up an Investment Committee made up of a team of professionals to consider, review and implement the recommendations of the Consultant, and retains discretion over implementation of the Consultant’s recommendations. The Consultant provides ongoing recommendations to the Investment Committee of the Investment Adviser quarterly or as warranted by market conditions.
ING Funds are permitted to invest end-of-day cash balances into ING Institutional Prime Money Market Fund. Investment management fees paid by the Funds will be reduced by an amount equal to the management fees paid indirectly to ING Institutional Prime Money Market Fund with respect to assets invested by the Funds. For the six months ended April 30, 2010, the following funds waived such management fees which are not subject to recoupment:
| | | | | |
| Global Natural Resources | | $ | 406 | |
| Global Real Estate | | | 24,723 | |
| Global Value Choice | | | 10,871 | |
| Asia-Pacific Real Estate | | | 32 | |
| European Real Estate | | | 12 | |
| Foreign | | | 282 | |
| International Real Estate | | | 2,478 | |
| International SmallCap Multi-Manager | | | 1,119 | |
| International Value | | | 8,657 | |
| International Value Choice | | | 1,134 | |
| Global Bond | | | 6,963 | |
ING Funds Services, LLC (the “Administrator”), serves as administrator to each Fund. The Funds pay the Administrator a fee calculated at an annual rate of 0.10% of each Fund’s average daily net assets.
Effective April 1, 2010, International Value no longer pays the Administrator an annual shareholder account-servicing fee of $5.00 for each account of beneficial owners of shares.
The Investment Adviser, ING IM, ING CRES, IIMA, ING Asia and the Administrator 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.
On October 19, 2008, ING Groep announced that it reached an agreement with the Dutch government to strengthen its capital position. ING Groep issued non-voting core Tier-1 securities for a total consideration of EUR 10 billion to the Dutch State. The transaction boosted ING Bank’s core Tier-1 ratio, strengthened the insurance balance sheet and reduced ING Groep’s Debt/Equity ratio.
On October 26, 2009, ING Groep announced that it will move towards a complete separation of its banking and insurance operations. A formal restructuring plan (“Restructuring Plan”) was submitted to the European Commission (“EC”), which approved it on November 18, 2009. ING Groep expects that the Restructuring Plan will be achieved over the next four years by a divestment of all insurance operations (including ING Investment Management) as well as a divestment of ING Direct US by the end of 2013. ING Groep has represented that it will explore all options, including initial public offerings, sales or combinations thereof.
On December 21, 2009, ING Groep announced that it has completed its planned repurchase of EUR 5 billion of Core Tier 1 securities issued November 2008 to the Dutch state and its EUR 7.5 billion rights issue.
NOTE 6 — DISTRIBUTION AND SERVICE FEES
Each share class of the Funds, except Class I and Class W, has adopted a Plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plans”), whereby ING Funds Distributor, LLC (“IFD” or the “Distributor”), an indirect, wholly-owned subsidiary of ING Groep, is reimbursed or compensated (depending on the class of shares) by the Funds for expenses incurred in the distribution of each Fund’s shares (“Distribution Fees”). Pursuant to the 12b-1 Plans, the Distributor is entitled to a payment each month for expenses incurred in the distribution and promotion 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 12b-1 Plans, each class of shares of a 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 O | | Class R |
| |
| Global Equity Dividend | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| Global Natural Resources | | | 0.25% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Global Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| Global Value Choice | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Asia-Pacific Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Emerging Countries | | | 0.35% | (1) | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| European Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Foreign | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Greater China | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| Index Plus International Equity | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
73
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 6 — DISTRIBUTION AND SERVICE FEES (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C | | Class O | | Class R |
| |
| International Capital Appreciation | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| International Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| International SmallCap Multi-Manager | | | 0.35% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| International Value | | | 0.30% | | | | 1.00 | % | | | 1.00 | %(2) | | | N/A | | | | N/A | |
| International Value Choice | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Russia | | | 0.25% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Global Bond | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| Diversified International | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | 0.50 | % |
| |
| (1) | The Distributor has agreed to waive 0.10% of the Distribution Fee for Class A shares of Emerging Countries for the period from January 1, 2009 through March 1, 2011. |
| (2) | The Distributor has voluntarily agreed to waive $79,085 of the Distribution Fee for Class C shares of International Value. |
The Distributor also receives the proceeds of the initial sales charge paid by shareholders upon the purchase of Class A shares, and the contingent deferred sales charge paid by shareholders upon certain redemptions for Class A and Class C shares. For the six months ended April 30, 2010, the Distributor retained the following amounts in sales charges for the Funds:
| | | | | | | | | |
| | | Class A
| | Class C
|
| | | Shares | | Shares |
| |
Initial Sales Charges: | | | | | | | | |
| Global Equity Dividend | | $ | 9,803 | | | | N/A | |
| Global Natural Resources | | | 13,775 | | | | N/A | |
| Global Real Estate | | | 85,052 | | | | N/A | |
| Global Value Choice | | | 65,828 | | | | N/A | |
| Asia-Pacific Real Estate | | | 16 | | | | N/A | |
| Emerging Countries | | | 5,371 | | | | N/A | |
| European Real Estate | | | 453 | | | | N/A | |
| Foreign | | | 2,663 | | | | N/A | |
| Greater China | | | 15,811 | | | | N/A | |
| Index Plus International Equity | | | 432 | | | | N/A | |
| International Capital Appreciation | | | 1,504 | | | | N/A | |
| International Real Estate | | | 6,194 | | | | N/A | |
| International SmallCap Multi-Manager | | | 2,221 | | | | N/A | |
| International Value | | | 4,695 | | | | N/A | |
| International Value Choice | | | 2,455 | | | | N/A | |
| Russia | | | 136,566 | | | | N/A | |
| Global Bond | | | 61,280 | | | | N/A | |
| Diversified International | | | 8,439 | | | | N/A | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
Contingent Deferred Sales Charges: | | | | | | | | |
| Global Equity Dividend | | $ | 30 | | | $ | 745 | |
| Global Real Estate | | | 2,700 | | | | 6,515 | |
| Global Value Choice | | | 1,156 | | | | 3,157 | |
| Asia-Pacific Real Estate | | | — | | | | 10 | |
| Emerging Countries | | | 30 | | | | 1,460 | |
| European Real Estate | | | — | | | | 189 | |
| Foreign | | | 35 | | | | 2,036 | |
| Greater China | | | 5 | | | | 12,912 | |
| International Capital Appreciation | | | — | | | | 86 | |
| International Real Estate | | | 25 | | | | 580 | |
| International SmallCap Multi-Manager | | | 359 | | | | 753 | |
| International Value | | | 62,783 | | | | 3,521 | |
| International Value Choice | | | 10 | | | | 249 | |
| Russia | | | 580 | | | | — | |
| Global Bond | | | 12 | | | | 7,788 | |
| Diversified International | | | 44 | | | | 2,108 | |
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At April 30, 2010, the Funds had the following amounts recorded in payable to affiliates on the accompanying Statements of Assets and Liabilities (See Notes 5 and 6):
| | | | | | | | | | | | | | | | | |
| | | Accrued
| | | | Shareholder
| | |
| | | Investment
| | Accrued
| | Service and
| | |
Fund | | Management Fees | | Administrative Fees | | Distribution Fees | | Total |
| |
| Global Equity Dividend | | $ | 96,407 | | | $ | 11,990 | | | $ | 53,869 | | | $ | 162,266 | |
| Global Natural Resources | | | 78,359 | | | | 9,093 | | | | 21,990 | | | | 109,442 | |
| Global Real Estate | | | 1,320,791 | | | | 184,176 | | | | 371,188 | | | | 1,876,155 | |
| Global Value Choice | | | 227,945 | | | | 25,582 | | | | 304,476 | | | | 558,003 | |
| Asia-Pacific Real Estate | | | 3,951 | | | | 396 | | | | 1,760 | | | | 6,107 | |
| Emerging Countries | | | 181,657 | | | | 14,532 | | | | 36,023 | | | | 232,212 | |
| European Real Estate | | | 3,406 | | | | 341 | | | | 954 | | | | 4,701 | |
| Foreign | | | 170,458 | | | | 17,050 | | | | 79,359 | | | | 266,867 | |
| Greater China | | | 46,055 | | | | 4,005 | | | | 15,260 | | | | 65,320 | |
| Index Plus International Equity | | | 53,448 | | | | 9,282 | | | | 13,642 | | | | 76,372 | |
| International Capital Appreciation | | | 69,184 | | | | 8,139 | | | | 15,175 | | | | 92,498 | |
| International Real Estate | | | 424,870 | | | | 45,403 | | | | 56,597 | | | | 526,870 | |
| International SmallCap Multi-Manager | | | 373,187 | | | | 37,328 | | | | 85,664 | | | | 496,179 | |
| International Value | | | 1,290,315 | | | | 129,127 | | | | 374,961 | | | | 1,794,403 | |
| International Value Choice | | | 45,508 | | | | 4,573 | | | | 9,792 | | | | 59,873 | |
| Russia | | | 480,903 | | | | 38,472 | | | | 94,629 | | | | 614,004 | |
| Global Bond | | | 135,649 | | | | 34,120 | | | | 91,437 | | | | 261,206 | |
| Diversified International | | | — | | | | 18,397 | | | | 97,110 | | | | 115,507 | |
74
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (continued)
At April 30, 2010, the following indirect, wholly owned subsidiaries of ING Groep owned the following Funds:
| | | |
| Diversified International — | | Emerging Countries (25.76%); Foreign (19.63%); Index Plus International Equity (15.24%); International Capital Appreciation (41.51%); International SmallCap Multi-Manager (5.38%); International Value Choice (36.24%). |
| | | |
| | | |
| ING Global Target Payment Fund — | | Index Plus International Equity (6.90%). |
| | | |
| | | |
| ING Life Insurance and Annuity Company — | | Asia-Pacific Real Estate (52.78%); European Real Estate (76.43%); International SmallCap Multi-Manager (8.55%). |
| | | |
| | | |
| ING National Trust — | | International Capital Appreciation (10.66%); International Value (10.48%). |
| | | |
| | | |
| ING Solution 2015 Portfolio — | | Global Bond (9.15%). |
| | | |
| | | |
| ING Solution 2025 Portfolio — | | Global Bond (13.79%). |
| | | |
| | | |
| ING Solution 2035 Portfolio — | | Global Bond (10.43%). |
| | | |
| | | |
| ING Strategic Allocation Growth — | | Index Plus International Equity (10.62%). |
| | | |
| | | |
| ING Strategic Allocation Moderate — | | Index Plus International Equity (8.79%). |
| | | |
| | | |
| Reliance Trust Company — | | International Capital Appreciation (7.17%). |
| | | |
| | | |
| Sharebuilder Securities Corporation — | | Global Equity Dividend (10.30%); Greater China (8.92%); Index Plus International Equity (39.85%). |
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 certain 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 Investment Adviser may request that the Funds’ portfolio managers use their best efforts (subject to obtaining best execution of each transaction) to allocate a portfolio’s equity security transactions through certain designated broker-dealers. The designated broker-dealer, in turn, will reimburse a portion of the brokerage commissions to pay certain expenses of that Fund. Any amounts credited to a Fund are reflected as a reimbursement of expenses in the Statements of Operations.
The Funds have adopted a Retirement Policy (“Policy”) covering independent trustees of the Funds 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 8 — OTHER ACCRUED EXPENSES AND LIABILITIES
At April 30, 2010, the Funds had the following payables included in Other Accrued Expenses and Liabilities on the Statements of Assets and Liabilities that exceeded 5% of total liabilities:
| | | | | | | |
Fund | | Accrued Expenses | | Amount |
| |
| Asia-Pacific Real Estate | | Custody | | $ | 10,129 | |
| | | Professional | | | 12,337 | |
| European Real Estate | | Custody | | | 4,581 | |
| | | Transfer Agent | | | 5,923 | |
| Index Plus International Equity | | Custody | | | 25,470 | |
| | | Transfer Agent | | | 34,659 | |
NOTE 9 — EXPENSE LIMITATION AGREEMENTS
The Investment Adviser and/or Distributor have agreed to limit expenses, excluding interest expense, 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 |
| |
| Global Equity Dividend | | | 1.40 | % | | | 2.15 | % | | | 2.15 | % | | | 1.15 | % | | | 1.40 | % | | | N/A | | | | 1.15 | % |
Global Natural Resources(1) | | | 2.00 | % | | | N/A | | | | N/A | | | | 1.75 | % | | | N/A | | | | N/A | | | | 1.75 | % |
| Global Real Estate | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | 1.75 | % | | | N/A | | | | 1.50 | % |
| Global Value Choice | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | 1.25 | % |
| Asia-Pacific Real Estate | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | N/A | | | | N/A | | | | N/A | |
Emerging Countries(2) | | | 2.25 | % | | | 2.90 | % | | | 2.90 | % | | | 1.75 | % | | | N/A | | | | N/A | | | | 1.90 | % |
| European Real Estate | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | N/A | | | | N/A | | | | N/A | |
Foreign(3) | | | 1.95 | % | | | 2.70 | % | | | 2.70 | % | | | 1.60 | % | | | N/A | | | | N/A | | | | 1.45 | % |
Greater China(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Index Plus International Equity | | | 1.15 | % | | | 1.90 | % | | | 1.90 | % | | | 0.90 | % | | | 1.15 | % | | | N/A | | | | N/A | |
75
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 9 — EXPENSE LIMITATION AGREEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C | | Class I | | Class O | | Class R | | Class W |
| |
| International Capital Appreciation | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | 1.25 | % |
| International Real Estate | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | 1.25 | % |
| International SmallCap Multi-Manager | | | 1.95 | % | | | 2.60 | % | | | 2.60 | % | | | 1.40 | % | | | 1.85 | % | | | N/A | | | | 1.60 | % |
International Value(5) | | | 1.80 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | N/A | | | | N/A | | | | 1.50 | % |
| International Value Choice | | | 1.70 | % | | | 2.45 | % | | | 2.45 | % | | | 1.45 | % | | | N/A | | | | N/A | | | | 1.45 | % |
Russia(6) | | | 2.75 | % | | | N/A | | | | N/A | | | | 2.50 | % | | | N/A | | | | N/A | | | | N/A | |
| Global Bond | | | 0.90 | % | | | 1.65 | % | | | 1.65 | % | | | 0.61 | % | | | 0.90 | % | | | N/A | | | | 0.65 | % |
Diversified International(7) | | | 0.50 | % | | | 1.25 | % | | | 1.25 | % | | | 0.25 | % | | | 0.50 | % | | | 0.75 | % | | | 0.25 | % |
| |
| (1) | Effective January 1, 2010, the expense limits for Class A, I and W were revised from 2.75%, 2.50% and 2.50%, respectively, to limits set forth in the table above. |
| (2) | Pursuant to a side agreement, ING Investments has lowered the expense limits for Emerging Countries through at least March 1, 2011. The expense limits for Emerging Countries are 2.10%, 2.85% and 2.85% for Class A, B and C shares, respectively. If, after March 1, 2011, ING Investments elects not to renew the side agreement, the expense limits will revert to the limits listed in the table above. There is no guarantee that this side agreement will continue after that date. The side agreement will only renew if ING Investments elects to renew it. Any fees waived pursuant to the side agreement shall not be eligible for recoupment. |
| (3) | Pursuant to a side agreement, ING Investments has lowered the expense limits for Foreign through at least March 1, 2011. The expense limits for Foreign are 1.70%, 2.45%, 2.45% and 1.35% for class A, B, C and I shares, respectively. If, after March 1, 2011, ING Investments elects not to renew the side agreement, the expense limits will revert to the limits listed in the table above. There is no guarantee that this side agreement will continue after that date. The side agreement will only renew if ING Investments elects to renew it. |
| (4) | Pursuant to a side agreement, the expense limits for Greater China are 2.10%, 2.85%, 2.85%, 1.85% and 2.10% for Class A, B, C, I and O shares, respectively, through March 1, 2011. There is no guarantee that this side agreement will continue after that date. This side agreement will only renew if ING Investments elects to renew it. Any fees waived pursuant to the side agreement shall not be eligible for recoupment. |
| (5) | The expense limits for International Value are effective April 1, 2010. Prior to April 1, 2010, International Value did not have an expense limit. |
| (6) | Effective January 1, 2010, the expense limits for Class A and I were revised from 3.35% and 3.10%, respectively, to limits set forth in the table above. |
| (7) | The operating expense limits for Diversified International set out above apply only at the fund level and do not limit the fees payable by the underlying investment companies in which the fund invests. Effective March 1, 2010, the expense limits for Class O and W were revised from 0.35% and 0.10%, respectively, to limits set forth in the table above. Including the expenses of the underlying Investment Companies, the expense limits for Diversified International are 1.65%, 2.40%, 2.40%, 1.40%, 1.65%, 1.90% and 1.40% for Class A, B, C, I, O, R and W shares, respectively. |
The Investment Adviser may at a later date recoup from a Fund management and/or class specific 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 Statement 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 April 30, 2010, the amounts of waived or reimbursed fees that are subject to possible recoupment by the Investment Adviser, and the related expiration dates, are as follows:
| | | | | | | | | | | | | | | | | |
| | | 2011 | | 2012 | | 2013 | | Total |
| |
| Global Equity Dividend | | $ | — | | | $ | 136,428 | | | $ | 100,526 | | | $ | 236,954 | |
| Asia-Pacific Real Estate | | | 56,041 | | | | 147,808 | | | | 100,209 | | | | 304,058 | |
| European Real Estate | | | 49,810 | | | | 133,948 | | | | 72,318 | | | | 256,076 | |
| Foreign | | | — | | | | — | | | | 3,727 | | | | 3,727 | |
| Greater China | | | — | | | | — | | | | 60,086 | | | | 60,086 | |
| Index Plus International Equity | | | — | | | | 959,777 | | | | 4,008 | | | | 963,785 | |
| International Capital Appreciation | | | — | | | | 25,287 | | | | 90,988 | | | | 116,275 | |
| Global Bond | | | 68,205 | | | | 180,782 | | | | 257,987 | | | | 506,974 | |
| Diversified International | | | 1,546,287 | | | | 1,429,314 | | | | 483,949 | | | | 3,459,550 | |
In addition to the above waived or reimbursed fees, the amount of class specific fees waived or reimbursed that are subject to possible recoupment by the Investment Adviser, and the related expiration dates, as of April 30, 2010, are as follows:
| | | | | | | | | | | | | | | | | |
| | | 2011 | | 2012 | | 2013 | | Total |
| |
| Global Value Choice | | | | | | | | | | | | | | | | |
| Class W | | $ | — | | | $ | — | | | $ | 233 | | | $ | 233 | |
| Foreign | | | | | | | | | | | | | | | | |
| Class A | | $ | — | | | $ | — | | | $ | 100,498 | | | $ | 100,498 | |
| Class B | | | — | | | | — | | | | 15,072 | | | | 15,072 | |
| Class C | | | — | | | | — | | | | 82,986 | | | | 82,986 | |
| Class W | | | — | | | | — | | | | 737 | | | | 737 | |
| Index Plus International Equity | | | | | | | | | | | | | | | | |
| Class A | | $ | — | | | $ | — | | | $ | 39,152 | | | $ | 39,152 | |
| Class B | | | — | | | | — | | | | 5,367 | | | | 5,367 | |
| Class C | | | — | | | | — | | | | 5,854 | | | | 5,854 | |
| Class O | | | — | | | | — | | | | 191,533 | | | | 191,533 | |
| International Real Estate | | | | | | | | | | | | | | | | |
| Class A | | $ | — | | | $ | — | | | $ | 189,290 | | | $ | 189,290 | |
| Class B | | | — | | | | — | | | | 7,832 | | | | 7,832 | |
| Class C | | | — | | | | — | | | | 57,561 | | | | 57,561 | |
| Class W | | | — | | | | — | | | | 574 | | | | 574 | |
| International Value Choice | | | | | | | | | | | | | | | | |
| Class A | | $ | — | | | $ | — | | | $ | 14,359 | | | $ | 14,359 | |
| Class B | | | — | | | | — | | | | 2,217 | | | | 2,217 | |
| Class C | | | — | | | | — | | | | 4,058 | | | | 4,058 | |
| Diversified International | | | | | | | | | | | | | | | | |
| Class A | | $ | — | | | $ | — | | | $ | 39,721 | | | $ | 39,721 | |
| Class B | | | — | | | | — | | | | 5,831 | | | | 5,831 | |
| Class C | | | — | | | | — | | | | 21,687 | | | | 21,687 | |
| Class O | | | — | | | | — | | | | 3,159 | | | | 3,159 | |
| Class R | | | — | | | | — | | | | 54 | | | | 54 | |
| Class W | | | — | | | | — | | | | 3,964 | | | | 3,964 | |
The expense limitation agreements are contractual and shall renew automatically for one-year terms unless ING Investments or IMF provides written notice of the termination of the expense limitation agreement at least 90 days prior to the end of the then current term.
76
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 10 — PURCHASED AND WRITTEN OPTIONS
Transactions in both purchased and written foreign currency options for Global Bond for the six months ended April 30, 2010 were as follows:
| | | | | | | | | | | | | |
| | | CHF
| | USD
| | |
| | | Notional | | Notional | | Premium |
| |
| Purchased Foreign Currency Options | | | | | | | | | | | | |
| Balance at 10/31/09 | | | 7,164,109 | | | | 12,978,000 | | | $ | 191,984 | |
| Options Purchased | | | — | | | | 90,153,540 | | | | 633,182 | |
| Options Terminated in Closing Sell Transactions | | | (7,164,109 | ) | | | (29,323,540 | ) | | | (355,440 | ) |
| Options Expired | | | — | | | | (73,808,000 | ) | | | (469,726 | ) |
| | | | | | | | | | | | | |
| Balance at 04/30/10 | | | — | | | | — | | | $ | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | CHF
| | USD
| | |
| | | Notional | | Notional | | Premium |
| |
| Written Foreign Currency Options | | | | | | | | | | | | |
| Balance at 10/31/09 | | | 7,164,109 | | | | 12,978,000 | | | $ | 218,966 | |
| Options Written | | | — | | | | 16,345,540 | | | | 183,070 | |
| Options Terminated in Closing Purchase Transactions | | | (7,164,109 | ) | | | (29,323,540 | ) | | | (402,036 | ) |
| Options Expired | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | |
| Balance at 04/30/10 | | | — | | | | — | | | $ | — | |
| | | | | | | | | | | | | |
NOTE 11 — LINE OF CREDIT
All of the Funds included in this report, in addition to certain other funds managed by the Investment Adviser or an affiliate of 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 an investor in the Funds. The Funds to which the line of credit is available paid a commitment fee equal to 0.15% per annum on the daily unused portion of the committed line amount payable quarterly in arrears for the period ended April 30, 2010.
The following Funds utilized the line of credit during the year ended April 30, 2010:
| | | | | | | | | | | | | |
| | | | | | | Approximate
|
| | | | | Approximate
| | Weighted
|
| | | | | Average
| | Average
|
| | | | | Daily Balance
| | Interest Rate
|
| | | Days
| | for Days
| | for Days
|
Fund | | Utilized | | Utilized | | Utilized |
| |
| Global Natural Resources | | | 5 | | | $ | 1,202,000 | | | | 1.37 | % |
| Asia-Pacific Real Estate | | | 6 | | | | 193,333 | | | | 1.36 | % |
| Emerging Countries | | | 5 | | | | 792,000 | | | | 1.38 | % |
| European Real Estate | | | 5 | | | | 746,000 | | | | 1.37 | % |
| Foreign | | | 60 | | | | 1,211,583 | | | | 1.39 | % |
Greater China(1) | | | 10 | | | | 824,500 | | | | 1.42 | % |
| Index Plus International Equity | | | 8 | | | | 1,218,125 | | | | 1.38 | % |
| International Capital Appreciation | | | 26 | | | | 848,269 | | | | 1.40 | % |
| International Real Estate | | | 9 | | | | 5,678,889 | | | | 1.37 | % |
| International SmallCap Multi-Manager | | | 57 | | | | 1,081,842 | | | | 1.37 | % |
| International Value | | | 77 | | | | 4,809,221 | | | | 1.38 | % |
| Global Bond | | | 25 | | | | 1,320,000 | | | | 1.38 | % |
| |
| (1) | At April 30, 2010, Greater China had an outstanding balance of $940,000. |
NOTE 12 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net increase
| | | | | | | | |
| | | | | Reinvestment
| | | | (decrease) in
| | | | Reinvestment
| | | | |
| | | | | of
| | Shares
| | shares
| | | | of
| | Shares
| | Net increase
|
Year or
| | Shares sold | | distributions | | redeemed | | outstanding | | Shares sold | | distributions | | redeemed | | (decrease) |
period ended | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) |
| |
Global Equity Dividend |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 543,072 | | | | 30,970 | | | | (1,145,083 | ) | | | (571,041 | ) | | | 5,378,815 | | | | 313,040 | | | | (11,410,457 | ) | | | (5,718,602 | ) |
| 10-31-09 | | | 910,513 | | | | 120,461 | | | | (3,249,618 | ) | | | (2,218,644 | ) | | | 7,243,833 | | | | 996,853 | | | | (26,003,285 | ) | | | (17,762,599 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 22,089 | | | | 5,677 | | | | (366,504 | ) | | | (338,738 | ) | | | 215,812 | | | | 57,263 | | | | (3,619,561 | ) | | | (3,346,486 | ) |
| 10-31-09 | | | 78,456 | | | | 30,196 | | | | (825,295 | ) | | | (716,643 | ) | | | 634,273 | | | | 249,985 | | | | (6,553,571 | ) | | | (5,669,313 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 132,891 | | | | 11,166 | | | | (750,629 | ) | | | (606,572 | ) | | | 1,321,709 | | | | 112,464 | | | | (7,423,833 | ) | | | (5,989,660 | ) |
| 10-31-09 | | | 468,872 | | | | 55,436 | | | | (2,066,211 | ) | | | (1,541,903 | ) | | | 3,852,465 | | | | 458,079 | | | | (16,369,585 | ) | | | (12,059,041 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 304,469 | | | | 2,260 | | | | (39,180 | ) | | | 267,549 | | | | 3,084,634 | | | | 22,878 | | | | (394,058 | ) | | | 2,713,454 | |
| 10-31-09 | | | 97,132 | | | | 5,729 | | | | (46,693 | ) | | | 56,168 | | | | 767,296 | | | | 47,693 | | | | (375,732 | ) | | | 439,257 | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 138,221 | | | | 658 | | | | (235,031 | ) | | | (96,152 | ) | | | 1,376,287 | | | | 6,638 | | | | (2,353,925 | ) | | | (971,000 | ) |
| 10-31-09 | | | 276,310 | | | | 2,762 | | | | (369,666 | ) | | | (90,594 | ) | | | 2,213,745 | | | | 22,787 | | | | (2,950,118 | ) | | | (713,586 | ) |
77
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 12 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net increase
| | | | | | | | |
| | | | | Reinvestment
| | | | (decrease) in
| | | | Reinvestment
| | | | |
| | | | | of
| | Shares
| | shares
| | | | of
| | Shares
| | Net increase
|
Year or
| | Shares sold | | distributions | | redeemed | | outstanding | | Shares sold | | distributions | | redeemed | | (decrease) |
period ended | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) |
| |
Global Equity Dividend (continued) |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 808,004 | | | | 16,435 | | | | (210,305 | ) | | | 614,134 | | | | 8,814,147 | | | | 181,215 | | | | (2,290,468 | ) | | | 6,704,894 | |
| 10-31-09 | | | 2,239,182 | | | | 23,282 | | | | (189,981 | ) | | | 2,072,483 | | | | 19,974,951 | | | | 218,131 | | | | (1,849,607 | ) | | | 18,343,475 | |
| |
Global Natural Resources |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 803,966 | | | | 31,815 | | | | (1,470,641 | ) | | | (634,860 | ) | | | 6,819,156 | | | | 260,562 | | | | (12,431,848 | ) | | | (5,352,130 | ) |
| 10-31-09 | | | 1,470,178 | | | | 787,696 | | | | (1,932,899 | ) | | | 324,975 | | | | 9,701,353 | | | | 4,962,490 | | | | (12,571,476 | ) | | | 2,092,367 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 418,951 | | | | 495 | | | | (24,318 | ) | | | 395,128 | | | | 3,725,054 | | | | 4,044 | | | | (208,992 | ) | | | 3,520,106 | |
| 10-31-09 | | | 73,310 | | | | 1,015 | | | | (9,277 | ) | | | 65,048 | | | | 461,755 | | | | 6,371 | | | | (60,312 | ) | | | 407,814 | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 10,599 | | | | 96 | | | | (2,671 | ) | | | 8,024 | | | | 112,405 | | | | 986 | | | | (27,607 | ) | | | 85,784 | |
| 10-31-09 | | | 18,740 | | | | 204 | | | | (3,315 | ) | | | 15,629 | | | | 167,106 | | | | 1,612 | | | | (32,689 | ) | | | 136,029 | |
| |
Global Real Estate |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 19,050,011 | | | | 2,230,918 | | | | (17,894,015 | ) | | | 3,386,914 | | | | 279,575,003 | | | | 32,820,985 | | | | (263,468,101 | ) | | | 48,927,887 | |
| 10-31-09 | | | 35,273,811 | | | | 1,466,408 | | | | (40,636,758 | ) | | | (3,896,539 | ) | | | 408,890,679 | | | | 16,720,591 | | | | (432,634,570 | ) | | | (7,023,300 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 55,549 | | | | 72,338 | | | | (219,860 | ) | | | (91,973 | ) | | | 693,426 | | | | 890,078 | | | | (2,683,710 | ) | | | (1,100,206 | ) |
| 10-31-09 | | | 166,384 | | | | 49,738 | | | | (587,295 | ) | | | (371,173 | ) | | | 1,702,193 | | | | 473,970 | | | | (5,308,965 | ) | | | (3,132,802 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 2,713,558 | | | | 412,238 | | | | (1,446,907 | ) | | | 1,678,889 | | | | 35,412,848 | | | | 5,363,382 | | | | (18,784,076 | ) | | | 21,992,154 | |
| 10-31-09 | | | 2,985,466 | | | | 254,710 | | | | (5,057,405 | ) | | | (1,817,229 | ) | | | 32,724,474 | | | | 2,561,518 | | | | (49,038,114 | ) | | | (13,752,122 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 27,301,278 | | | | 1,699,039 | | | | (4,263,244 | ) | | | 24,737,073 | | | | 401,755,187 | | | | 25,014,316 | | | | (62,467,272 | ) | | | 364,302,231 | |
| 10-31-09 | | | 26,525,227 | | | | 902,861 | | | | (13,297,323 | ) | | | 14,130,765 | | | | 309,867,495 | | | | 10,316,518 | | | | (154,903,172 | ) | | | 165,280,841 | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 101,344 | | | | 1,497 | | | | (103,942 | ) | | | (1,101 | ) | | | 1,499,360 | | | | 22,014 | | | | (1,528,034 | ) | | | (6,660 | ) |
| 10-31-09 | | | 165,069 | | | | 1,903 | | | | (231,028 | ) | | | (64,056 | ) | | | 1,869,772 | | | | 21,409 | | | | (2,599,886 | ) | | | (708,705 | ) |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 4,228,547 | | | | 453,897 | | | | (1,239,799 | ) | | | 3,442,645 | | | | 62,310,823 | | | | 6,694,878 | | | | (18,256,668 | ) | | | 50,749,033 | |
| 10-31-09 | | | 10,717,462 | | | | 273,573 | | | | (4,367,066 | ) | | | 6,623,969 | | | | 115,194,535 | | | | 3,106,650 | | | | (50,267,972 | ) | | | 68,033,213 | |
| |
Global Value Choice |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 2,997,558 | | | | 19,446 | | | | (1,747,860 | ) | | | 1,269,144 | | | | 85,780,435 | | | | 545,422 | | | | (51,081,670 | ) | | | 35,244,187 | |
| 10-31-09 | | | 6,538,227 | | | | — | | | | (4,714,108 | ) | | | 1,824,119 | | | | 132,608,998 | | | | — | | | | (98,627,829 | ) | | | 33,981,169 | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 44,181 | | | | 526 | | | | (41,232 | ) | | | 3,475 | | | | 1,334,525 | | | | 15,683 | | | | (1,253,919 | ) | | | 96,289 | |
| 10-31-09 | | | 97,118 | | | | — | | | | (214,707 | ) | | | (117,589 | ) | | | 2,359,749 | | | | — | | | | (4,388,375 | ) | | | (2,028,626 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 984,547 | | | | 3,072 | | | | (233,597 | ) | | | 754,022 | | | | 26,788,287 | | | | 81,317 | | | | (6,362,261 | ) | | | 20,507,343 | |
| 10-31-09 | | | 964,841 | | | | — | | | | (331,636 | ) | | | 633,205 | | | | 20,983,932 | | | | — | | | | (6,137,973 | ) | | | 14,845,959 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,657,803 | | | | 3,454 | | | | (131,087 | ) | | | 1,530,170 | | | | 48,849,357 | | | | 97,710 | | | | (3,836,272 | ) | | | 45,110,795 | |
| 10-31-09 | | | 216,033 | | | | — | | | | (165,913 | ) | | | 50,120 | | | | 4,623,100 | | | | — | | | | (3,400,709 | ) | | | 1,222,391 | |
78
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 12 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Net increase
| | | | | | | | | | | | |
| | | | | Reinvestment
| | | | | | (decrease) in
| | | | Payments by
| | Reinvestment
| | | | | | |
| | | | | of
| | Shares
| | Shares
| | shares
| | | | affiliate
| | of
| | Shares
| | Shares
| | Net increase
|
Year or
| | Shares sold | | distributions | | redeemed | | converted | | outstanding | | Shares sold | | (Note 18) | | distributions | | redeemed | | converted | | (decrease) |
period ended | | # | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) |
| |
Global Value Choice (continued) |
Class Q(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 94,329 | | | | 141 | | | | (90,249 | ) | | | (89,157 | ) | | | (84,936 | ) | | | 164,212 | | | | — | | | | 4,706 | | | | (35,023 | ) | | | (2,937,993 | ) | | | (2,804,098 | ) |
| 10-31-09 | | | 137,594 | | | | — | | | | (120,545 | ) | | | — | | | | 17,049 | | | | 3,299,839 | | | | — | | | | — | | | | (3,102,099 | ) | | | — | | | | 197,740 | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 341,563 | | | | 544 | | | | (42,744 | ) | | | 104,290 | | | | 403,653 | | | | 9,996,596 | | | | — | | | | 15,268 | | | | (1,230,968 | ) | | | 2,937,993 | | | | 11,718,889 | |
06-01-09(1)-
10-31-09 | | | 10,629 | | | | — | | | | (1,190 | ) | | | — | | | | 9,439 | | | | 292,141 | | | | — | | | | — | | | | (32,898 | ) | | | — | | | | 259,243 | |
| |
Asia-Pacific Real Estate |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 172,243 | | | | 4,900 | | | | (65,962 | ) | | | — | | | | 111,181 | | | | 943,678 | | | | — | | | | 26,469 | | | | (362,708 | ) | | | — | | | | 607,439 | |
| 10-31-09 | | | 70,910 | | | | 1,315 | | | | (159,906 | ) | | | — | | | | (87,681 | ) | | | 396,983 | | | | — | | | | 6,056 | | | | (668,134 | ) | | | — | | | | (265,095 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | — | | | | 464 | | | | (6 | ) | | | — | | | | 458 | | | | — | | | | — | | | | 2,501 | | | | (35 | ) | | | — | | | | 2,466 | |
| 10-31-09 | | | 647 | | | | 77 | | | | (9 | ) | | | — | | | | 715 | | | | 3,076 | | | | — | | | | 348 | | | | (54 | ) | | | — | | | | 3,370 | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 71,417 | | | | 2,001 | | | | (15,509 | ) | | | — | | | | 57,909 | | | | 374,053 | | | | — | | | | 10,775 | | | | (82,887 | ) | | | — | | | | 301,941 | |
| 10-31-09 | | | 114,637 | | | | 237 | | | | (736,123 | ) | | | — | | | | (621,249 | ) | | | 593,919 | | | | — | | | | 1,091 | | | | (3,103,015 | ) | | | — | | | | (2,508,005 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,019 | | | | — | | | | (597 | ) | | | — | | | | 422 | | | | 5,655 | | | | — | | | | — | | | | (3,001 | ) | | | — | | | | 2,654 | |
| 10-31-09 | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | | | | (6 | ) | | | — | | | | (6 | ) |
| |
Emerging Countries |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 218,524 | | | | — | | | | (400,812 | ) | | | — | | | | (182,288 | ) | | | 5,653,952 | | | | — | | | | — | | | | (10,295,681 | ) | | | — | | | | (4,641,729 | ) |
| 10-31-09 | | | 511,157 | | | | 94,935 | | | | (1,077,430 | ) | | | — | | | | (471,338 | ) | | | 10,120,722 | | | | 787,440 | | | | 1,498,911 | | | | (18,239,250 | ) | | | — | | | | (5,832,177 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6,754 | | | | — | | | | (40,694 | ) | | | — | | | | (33,940 | ) | | | 172,737 | | | | — | | | | — | | | | (1,017,725 | ) | | | — | | | | (844,988 | ) |
| 10-31-09 | | | 28,193 | | | | 2,330 | | | | (92,590 | ) | | | — | | | | (62,067 | ) | | | 568,063 | | | | 52,639 | | | | 36,664 | | | | (1,546,719 | ) | | | — | | | | (889,353 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 55,713 | | | | — | | | | (115,730 | ) | | | — | | | | (60,017 | ) | | | 1,341,164 | | | | — | | | | — | | | | (2,743,109 | ) | | | — | | | | (1,401,945 | ) |
| 10-31-09 | | | 118,019 | | | | 10,848 | | | | (346,829 | ) | | | — | | | | (217,962 | ) | | | 2,032,627 | | | | 189,173 | | | | 160,382 | | | | (5,702,039 | ) | | | — | | | | (3,319,857 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,350,353 | | | | — | | | | (402,236 | ) | | | — | | | | 948,117 | | | | 35,807,376 | | | | — | | | | — | | | | (10,477,145 | ) | | | — | | | | 25,330,231 | |
| 10-31-09 | | | 717,479 | | | | 46,082 | | | | (607,296 | ) | | | — | | | | 156,265 | | | | 12,379,748 | | | | 295,440 | | | | 725,836 | | | | (10,528,832 | ) | | | — | | | | 2,872,192 | |
Class Q(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 32,646 | | | | — | | | | (91,200 | ) | | | (256,659 | ) | | | (315,213 | ) | | | 859,044 | | | | — | | | | — | | | | (2,418,652 | ) | | | (6,866,484 | ) | | | (8,426,092 | ) |
| 10-31-09 | | | 239,986 | | | | 8,656 | | | | (240,918 | ) | | | — | | | | 7,724 | | | | 4,724,590 | | | | 75,204 | | | | 141,928 | | | | (4,437,488 | ) | | | — | | | | 504,234 | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 21,109 | | | | — | | | | (25,824 | ) | | | 254,590 | | | | 249,875 | | | | 577,640 | | | | — | | | | — | | | | (715,676 | ) | | | 6,866,484 | | | | 6,728,448 | |
| 10-31-09 | | | 3,260 | | | | 56 | | | | (1,682 | ) | | | — | | | | 1,634 | | | | 68,462 | | | | 384 | | | | 928 | | | | (29,160 | ) | | | — | | | | 40,614 | |
| |
European Real Estate |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 68,021 | | | | 11,105 | | | | (398,168 | ) | | | — | | | | (319,042 | ) | | | 474,064 | | | | — | | | | 72,776 | | | | (2,652,911 | ) | | | — | | | | (2,106,071 | ) |
| 10-31-09 | | | 380,060 | | | | 5,024 | | | | (42,539 | ) | | | — | | | | 342,545 | | | | 2,499,959 | | | | — | | | | 24,404 | | | | (231,184 | ) | | | — | | | | 2,293,179 | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 11,757 | | | | 1,219 | | | | (1,218 | ) | | | — | | | | 11,758 | | | | 85,000 | | | | — | | | | 7,927 | | | | (8,068 | ) | | | — | | | | 84,859 | |
| 10-31-09 | | | 2,865 | | | | 123 | | | | (548 | ) | | | — | | | | 2,440 | | | | 13,462 | | | | — | | | | 586 | | | | (2,806 | ) | | | — | | | | 11,242 | |
79
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 12 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Net increase
| | | | | | | | | | | | |
| | | | | Reinvestment
| | | | | | (decrease) in
| | | | Payments by
| | Reinvestment
| | | | | | |
| | | | | of
| | Shares
| | Shares
| | shares
| | | | affiliate
| | of
| | Shares
| | Shares
| | Net increase
|
Year or
| | Shares sold | | distributions | | redeemed | | converted | | outstanding | | Shares sold | | (Note 18) | | distributions | | redeemed | | converted | | (decrease) |
period ended | | # | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) |
| |
European Real Estate (continued) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8,352 | | | | 722 | | | | (5,683 | ) | | | — | | | | 3,391 | | | | 57,294 | | | | — | | | | 4,696 | | | | (37,120 | ) | | | — | | | | 24,870 | |
| 10-31-09 | | | 1,342 | | | | 420 | | | | (1,047 | ) | | | — | | | | 715 | | | | 8,521 | | | | — | | | | 2,002 | | | | (6,484 | ) | | | — | | | | 4,039 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9,889 | | | | — | | | | (578 | ) | | | — | | | | 9,311 | | | | 65,323 | | | | — | | | | — | | | | (3,591 | ) | | | — | | | | 61,732 | |
| 10-31-09 | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | | | | (6 | ) | | | — | | | | (6 | ) |
| |
Foreign |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 387,265 | | | | — | | | | (2,503,249 | ) | | | — | | | | (2,115,984 | ) | | | 5,171,531 | | | | — | | | | — | | | | (33,911,558 | ) | | | — | | | | (28,740,027 | ) |
| 10-31-09 | | | 1,371,631 | | | | 284,304 | | | | (7,301,637 | ) | | | — | | | | (5,645,702 | ) | | | 15,185,123 | | | | — | | | | 3,268,720 | | | | (78,630,589 | ) | | | — | | | | (60,176,746 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,570 | | | | — | | | | (232,551 | ) | | | — | | | | (230,981 | ) | | | 20,349 | | | | — | | | | — | | | | (2,988,693 | ) | | | — | | | | (2,968,344 | ) |
| 10-31-09 | | | 55,680 | | | | 30,318 | | | | (630,033 | ) | | | — | | | | (544,035 | ) | | | 594,826 | | | | — | | | | 337,982 | | | | (6,541,059 | ) | | | — | | | | (5,608,251 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 291,353 | | | | — | | | | (1,651,150 | ) | | | — | | | | (1,359,797 | ) | | | 3,767,556 | | | | — | | | | — | | | | (21,231,011 | ) | | | — | | | | (17,463,455 | ) |
| 10-31-09 | | | 627,944 | | | | 167,024 | | | | (3,714,605 | ) | | | — | | | | (2,919,637 | ) | | | 6,702,848 | | | | — | | | | 1,862,026 | | | | (39,092,373 | ) | | | — | | | | (30,527,499 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 615,376 | | | | — | | | | (2,454,654 | ) | | | — | | | | (1,839,278 | ) | | | 8,809,835 | | | | — | | | | — | | | | (34,158,122 | ) | | | — | | | | (25,348,287 | ) |
| 10-31-09 | | | 2,039,880 | | | | 280,181 | | | | (3,037,898 | ) | | | — | | | | (717,837 | ) | | | 22,812,939 | | | | — | | | | 3,268,812 | | | | (32,771,577 | ) | | | — | | | | (6,689,826 | ) |
Class Q(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | — | | | | — | | | | — | | | | (1,775 | ) | | | (1,775 | ) | | | — | | | | — | | | | — | | | | — | | | | (24,700 | ) | | | (24,700 | ) |
| 10-31-09 | | | — | | | | 57 | | | | (3,945 | ) | | | — | | | | (3,888 | ) | | | — | | | | — | | | | 675 | | | | (41,702 | ) | | | — | | | | (41,027 | ) |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 78,526 | | | | — | | | | (8,306 | ) | | | 1,677 | | | | 71,897 | | | | 1,151,500 | | | | — | | | | — | | | | (123,595 | ) | | | 24,700 | | | | 1,052,605 | |
| 10-31-09 | | | 31,220 | | | | 1,029 | | | | (15,049 | ) | | | — | | | | 17,200 | | | | 373,143 | | | | — | | | | 12,878 | | | | (181,480 | ) | | | — | | | | 204,541 | |
| |
Greater China |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 401,134 | | | | 30,821 | | | | (590,290 | ) | | | — | | | | (158,335 | ) | | | 5,880,448 | | | | — | | | | 454,584 | | | | (8,601,703 | ) | | | — | | | | (2,266,671 | ) |
| 10-31-09 | | | 1,620,136 | | | | 123,707 | | | | (1,659,729 | ) | | | — | | | | 84,114 | | | | 19,265,434 | | | | — | | | | 1,239,574 | | | | (18,938,896 | ) | | | — | | | | 1,566,112 | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 10,741 | | | | 1,443 | | | | (48,994 | ) | | | — | | | | (36,810 | ) | | | 156,370 | | | | — | | | | 21,161 | | | | (692,115 | ) | | | — | | | | (514,584 | ) |
| 10-31-09 | | | 80,471 | | | | 11,348 | | | | (71,120 | ) | | | — | | | | 20,699 | | | | 942,985 | | | | — | | | | 113,136 | | | | (788,399 | ) | | | — | | | | 267,722 | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 100,846 | | | | 4,161 | | | | (141,377 | ) | | | — | | | | (36,370 | ) | | | 1,487,386 | | | | — | | | | 61,001 | | | | (2,076,584 | ) | | | — | | | | (528,197 | ) |
| 10-31-09 | | | 303,440 | | | | 14,271 | | | | (177,326 | ) | | | — | | | | 140,385 | | | | 3,924,773 | | | | — | | | | 142,714 | | | | (2,096,269 | ) | | | — | | | | 1,971,218 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 113,736 | | | | 937 | | | | (12,364 | ) | | | — | | | | 102,309 | | | | 1,706,862 | | | | — | | | | 13,770 | | | | (180,778 | ) | | | — | | | | 1,539,854 | |
| 10-31-09 | | | 74,850 | | | | 480 | | | | (31,315 | ) | | | — | | | | 44,015 | | | | 1,012,075 | | | | — | | | | 4,797 | | | | (448,599 | ) | | | — | | | | 568,273 | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 160,355 | | | | — | | | | (86,838 | ) | | | — | | | | 73,517 | | | | 2,340,942 | | | | — | | | | — | | | | (1,255,835 | ) | | | — | | | | 1,085,107 | |
| 10-31-09 | | | 270,635 | | | | — | | | | (83,831 | ) | | | — | | | | 186,804 | | | | 3,346,554 | | | | — | | | | — | | | | (1,090,406 | ) | | | — | | | | 2,256,148 | |
| |
Index Plus International Equity |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 90,855 | | | | 19,995 | | | | (128,987 | ) | | | — | | | | (18,137 | ) | | | 729,442 | | | | — | | | | 158,654 | | | | (1,033,337 | ) | | | — | | | | (145,241 | ) |
| 10-31-09 | | | 101,065 | | | | 50,580 | | | | (508,408 | ) | | | — | | | | (356,763 | ) | | | 656,750 | | | | 42,188 | | | | 316,123 | | | | (3,249,309 | ) | | | — | | | | (2,234,248 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,441 | | | | 1,260 | | | | (46,532 | ) | | | — | | | | (43,831 | ) | | | 11,833 | | | | — | | | | 10,068 | | | | (370,714 | ) | | | — | | | | (348,813 | ) |
| 10-31-09 | | | 13,926 | | | | 3,810 | | | | (110,968 | ) | | | — | | | | (93,232 | ) | | | 86,071 | | | | 5,630 | | | | 23,930 | | | | (680,898 | ) | | | — | | | | (565,267 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 13,256 | | | | 1,572 | | | | (27,524 | ) | | | — | | | | (12,696 | ) | | | 106,104 | | | | — | | | | 12,475 | | | | (221,594 | ) | | | — | | | | (103,015 | ) |
| 10-31-09 | | | 26,669 | | | | 3,268 | | | | (52,196 | ) | | | — | | | | (22,259 | ) | | | 162,592 | | | | 6,257 | | | | 20,424 | | | | (310,039 | ) | | | — | | | | (120,766 | ) |
80
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 12 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Proceeds
| | | | | | | | |
| | | | | | | | | | | | | Net increase
| | | | | | from
| | | | | | | | |
| | | | | Shares
| | Reinvestment
| | | | | | (decrease) in
| | | | Payments by
| | shares
| | | | | | | | |
| | | | | issued in
| | of
| | Shares
| | Shares
| | shares
| | | | affiliate
| | issued
| | Reinvestment of
| | Shares
| | Shares
| | Net increase
|
Year or
| | Shares sold | | merger | | distributions | | redeemed | | converted | | outstanding | | Shares sold | | (Note 18) | | in merger | | distributions | | redeemed | | converted | | (decrease) |
period ended | | # | | # | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) |
| |
Index Plus International Equity (continued) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 674,851 | | | | — | | | | 129,035 | | | | (774,958 | ) | | | — | | | | 28,928 | | | | 5,389,840 | | | | — | | | | — | | | | 1,023,724 | | | | (6,233,607 | ) | | | — | | | | 179,957 | |
| 10-31-09 | | | 1,779,458 | | | | — | | | | 437,590 | | | | (4,214,852 | ) | | | — | | | | (1,997,804 | ) | | | 11,549,179 | | | | 239,494 | | | | — | | | | 2,730,559 | | | | (26,438,519 | ) | | | — | | | | (11,919,287 | ) |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 278,269 | | | | — | | | | 6,267 | | | | (570,321 | ) | | | — | | | | (285,785 | ) | | | 2,216,167 | | | | — | | | | — | | | | 49,354 | | | | (4,548,197 | ) | | | — | | | | (2,282,676 | ) |
| 10-31-09 | | | 636,241 | | | | — | | | | 33,354 | | | | (1,142,220 | ) | | | — | | | | (472,625 | ) | | | 3,958,056 | | | | 204,241 | | | | — | | | | 206,799 | | | | (7,174,283 | ) | | | — | | | | (2,805,187 | ) |
| |
International Capital Appreciation |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 134,856 | | | | — | | | | — | | | | (386,993 | ) | | | — | | | | (252,137 | ) | | | 1,301,247 | | | | — | | | | — | | | | — | | | | (3,733,986 | ) | | | — | | | | (2,432,739 | ) |
| 10-31-09 | | | 102,826 | | | | 2,847,730 | | | | 1,714 | | | | (335,120 | ) | | | — | | | | 2,617,150 | | | | 880,999 | | | | — | | | | 24,468,063 | | | | 12,234 | | | | (2,601,438 | ) | | | — | | | | 22,759,858 | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 10,691 | | | | — | | | | — | | | | (112,786 | ) | | | — | | | | (102,095 | ) | | | 105,091 | | | | — | | | | — | | | | — | | | | (1,077,266 | ) | | | — | | | | (972,175 | ) |
| 10-31-09 | | | 48,165 | | | | 463,335 | | | | 252 | | | | (55,669 | ) | | | — | | | | 456,083 | | | | 395,179 | | | | — | | | | 3,950,116 | | | | 2,182 | | | | (424,084 | ) | | | — | | | | 3,923,393 | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 15,872 | | | | — | | | | — | | | | (87,599 | ) | | | — | | | | (71,727 | ) | | | 150,779 | | | | — | | | | — | | | | — | | | | (840,303 | ) | | | — | | | | (689,524 | ) |
| 10-31-09 | | | 29,940 | | | | 836,791 | | | | 81 | | | | (49,346 | ) | | | — | | | | 817,466 | | | | 253,183 | | | | — | | | | 7,160,428 | | | | 703 | | | | (405,801 | ) | | | — | | | | 7,008,513 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 831,413 | | | | — | | | | — | | | | (1,961,331 | ) | | | — | | | | (1,129,918 | ) | | | 8,081,990 | | | | — | | | | — | | | | — | | | | (19,290,176 | ) | | | — | | | | (11,208,186 | ) |
| 10-31-09 | | | 1,850,459 | | | | 847,064 | | | | 215,139 | | | | (3,481,989 | ) | | | — | | | | (569,327 | ) | | | 11,581,208 | | | | — | | | | 7,244,473 | | | | 1,505,866 | | | | (23,752,279 | ) | | | — | | | | (3,420,732 | ) |
Class Q(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 37,938 | | | | — | | | | — | | | | (104,931 | ) | | | (1,225,201 | ) | | | (1,292,194 | ) | | | 364,883 | | | | — | | | | — | | | | — | | | | (1,009,772 | ) | | | (11,746,943 | ) | | | (12,391,832 | ) |
| 10-31-09 | | | 20,196 | | | | 1,352,395 | | | | — | | | | (80,397 | ) | | | — | | | | 1,292,194 | | | | 184,872 | | | | — | | | | 11,617,182 | | | | — | | | | (729,208 | ) | | | — | | | | 11,072,846 | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 122,361 | | | | — | | | | — | | | | (158,180 | ) | | | 1,225,201 | | | | 1,189,382 | | | | 1,180,027 | | | | — | | | | — | | | | — | | | | (1,538,920 | ) | | | 11,746,943 | | | | 11,388,050 | |
08-07-09(1)-
10-31-09 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| |
International Real Estate |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 8,327,658 | | | | — | | | | 919,737 | | | | (3,431,416 | ) | | | — | | | | 5,815,979 | | | | 68,123,577 | | | | — | | | | — | | | | 7,499,727 | | | | (27,828,565 | ) | | | — | | | | 47,794,739 | |
| 10-31-09 | | | 10,856,139 | | | | — | | | | 187,058 | | | | (10,216,094 | ) | | | — | | | | 827,103 | | | | 80,995,390 | | | | — | | | | — | | | | 1,251,514 | | | | (68,335,161 | ) | | | — | | | | 13,911,743 | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6,660 | | | | — | | | | 23,170 | | | | (67,134 | ) | | | — | | | | (37,304 | ) | | | 54,974 | | | | — | | | | — | | | | 188,308 | | | | (545,848 | ) | | | — | | | | (302,566 | ) |
| 10-31-09 | | | 32,511 | | | | — | | | | 6,668 | | | | (161,717 | ) | | | — | | | | (122,538 | ) | | | 221,994 | | | | — | | | | — | | | | 44,407 | | | | (1,010,676 | ) | | | — | | | | (744,275 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 343,687 | | | | — | | | | 134,595 | | | | (420,073 | ) | | | — | | | | 58,209 | | | | 2,808,597 | | | | — | | | | — | | | | 1,092,416 | | | | (3,409,412 | ) | | | — | | | | 491,601 | |
| 10-31-09 | | | 463,520 | | | | — | | | | 37,943 | | | | (2,688,671 | ) | | | — | | | | (2,187,208 | ) | | | 3,385,481 | | | | — | | | | — | | | | 252,590 | | | | (16,625,935 | ) | | | — | | | | (12,987,864 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7,793,479 | | | | — | | | | 735,044 | | | | (11,666,844 | ) | | | — | | | | (3,138,321 | ) | | | 63,346,411 | | | | — | | | | — | | | | 6,001,885 | | | | (93,753,205 | ) | | | — | | | | (24,404,909 | ) |
| 10-31-09 | | | 24,743,016 | | | | — | | | | 397,990 | | | | (21,468,261 | ) | | | — | | | | 3,672,745 | | | | 157,988,044 | | | | — | | | | — | | | | 2,682,070 | | | | (146,561,555 | ) | | | — | | | | 14,108,559 | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 259,851 | | | | — | | | | 8,939 | | | | (69,318 | ) | | | — | | | | 199,472 | | | | 2,140,581 | | | | — | | | | — | | | | 73,164 | | | | (574,473 | ) | | | — | | | | 1,639,272 | |
| 10-31-09 | | | 222,598 | | | | — | | | | 1,804 | | | | (22,663 | ) | | | — | | | | 201,739 | | | | 1,729,123 | | | | — | | | | — | | | | 12,716 | | | | (171,266 | ) | | | — | | | | 1,570,573 | |
81
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 12 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Net increase
| | | | | | | | | | | | |
| | | | | Reinvestment
| | | | | | (decrease) in
| | | | Payments by
| | Reinvestment
| | | | | | |
| | | | | of
| | Shares
| | Shares
| | shares
| | | | affiliate
| | of
| | Shares
| | Shares
| | Net increase
|
Year or
| | Shares sold | | distributions | | redeemed | | converted | | outstanding | | Shares sold | | (Note 18) | | distributions | | redeemed | | converted | | (decrease) |
period ended | | # | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) |
| |
International SmallCap Multi-Manager |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 470,273 | | | | 44,680 | | | | (1,795,821 | ) | | | — | | | | (1,280,868 | ) | | | 15,488,654 | | | | — | | | | 1,454,336 | | | | (60,403,952 | ) | | | — | | | | (43,460,962 | ) |
| 10-31-09 | | | 1,348,432 | | | | 150,477 | | | | (2,921,857 | ) | | | — | | | | (1,422,948 | ) | | | 33,018,290 | | | | 1,161,532 | | | | 3,373,881 | | | | (69,598,429 | ) | | | — | | | | (32,044,726 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 2,033 | | | | 593 | | | | (68,707 | ) | | | — | | | | (66,081 | ) | | | 70,360 | | | | — | | | | 20,250 | | | | (2,382,346 | ) | | | — | | | | (2,291,736 | ) |
| 10-31-09 | | | 11,148 | | | | 2,719 | | | | (266,483 | ) | | | — | | | | (252,616 | ) | | | 291,306 | | | | 68,188 | | | | 64,369 | | | | (6,411,677 | ) | | | — | | | | (5,987,814 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 23,548 | | | | 5,953 | | | | (113,177 | ) | | | — | | | | (83,676 | ) | | | 734,866 | | | | — | | | | 181,539 | | | | (3,499,746 | ) | | | — | | | | (2,583,341 | ) |
| 10-31-09 | | | 63,914 | | | | 20,386 | | | | (405,458 | ) | | | — | | | | (321,158 | ) | | | 1,447,283 | | | | 212,607 | | | | 429,751 | | | | (8,998,765 | ) | | | — | | | | (6,909,124 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,551,078 | | | | 43,721 | | | | (748,053 | ) | | | — | | | | 846,746 | | | | 52,339,773 | | | | — | | | | 1,422,124 | | | | (24,982,250 | ) | | | — | | | | 28,779,647 | |
| 10-31-09 | | | 2,715,701 | | | | 105,575 | | | | (3,681,362 | ) | | | — | | | | (860,086 | ) | | | 69,313,964 | | | | 923,408 | | | | 2,362,922 | | | | (88,778,751 | ) | | | — | | | | (16,178,457 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 17,674 | | | | — | | | | (3,922 | ) | | | — | | | | 13,752 | | | | 583,741 | | | | — | | | | — | | | | (129,946 | ) | | | — | | | | 453,795 | |
| 10-31-09 | | | 24,136 | | | | — | | | | (8,794 | ) | | | — | | | | 15,342 | | | | 607,858 | | | | 1,900 | | | | — | | | | (242,535 | ) | | | — | | | | 367,223 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Q(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 9,966 | | | | 9,172 | | | | (7,889 | ) | | | (910,998 | ) | | | (899,749 | ) | | | 402,874 | | | | — | | | | 276,272 | | | | (280,396 | ) | | | (31,864,997 | ) | | | (31,466,247 | ) |
| 10-31-09 | | | 181,108 | | | | 42,371 | | | | (1,079,348 | ) | | | — | | | | (855,869 | ) | | | 4,856,128 | | | | 221,207 | | | | 1,035,594 | | | | (25,746,978 | ) | | | — | | | | (19,634,049 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 146,961 | | | | 5,445 | | | | (287,899 | ) | | | 841,925 | | | | 706,432 | | | | 5,703,452 | | | | — | | | | 259,645 | | | | (11,087,494 | ) | | | 31,864,997 | | | | 26,740,600 | |
| 10-31-09 | | | 126,076 | | | | 13,008 | | | | (200,286 | ) | | | — | | | | (61,202 | ) | | | 3,561,630 | | | | 73,078 | | | | 343,560 | | | | (5,206,493 | ) | | | — | | | | (1,228,225 | ) |
| |
International Value Fund |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 4,100,510 | | | | 710,866 | | | | (13,300,326 | ) | | | — | | | | (8,488,950 | ) | | | 47,259,388 | | | | — | | | | 8,359,125 | | | | (154,380,155 | ) | | | — | | | | (98,761,642 | ) |
| 10-31-09 | | | 16,601,423 | | | | 13,240,763 | | | | (49,286,953 | ) | | | — | | | | (19,444,767 | ) | | | 155,743,430 | | | | 417,878 | | | | 125,310,400 | | | | (456,666,236 | ) | | | — | | | | (175,194,528 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 21,537 | | | | 9,206 | | | | (1,771,277 | ) | | | — | | | | (1,740,534 | ) | | | 252,668 | | | | — | | | | 106,986 | | | | (20,264,472 | ) | | | — | | | | (19,904,818 | ) |
| 10-31-09 | | | 136,224 | | | | 1,111,861 | | | | (5,749,201 | ) | | | — | | | | (4,501,116 | ) | | | 1,262,493 | | | | 28,612 | | | | 10,444,144 | | | | (53,332,951 | ) | | | — | | | | (41,597,702 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 139,932 | | | | 173,077 | | | | (3,926,547 | ) | | | — | | | | (3,613,538 | ) | | | 1,589,593 | | | | — | | | | 1,980,048 | | | | (43,899,976 | ) | | | — | | | | (40,330,335 | ) |
| 10-31-09 | | | 1,782,967 | | | | 4,284,938 | | | | (10,863,629 | ) | | | — | | | | (4,795,724 | ) | | | 16,368,193 | | | | 154,097 | | | | 39,564,402 | | | | (98,584,395 | ) | | | — | | | | (42,497,703 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 5,925,081 | | | | 725,981 | | | | (7,718,198 | ) | | | — | | | | (1,067,136 | ) | | | 68,039,769 | | | | — | | | | 8,507,693 | | | | (88,609,444 | ) | | | — | | | | (12,061,982 | ) |
| 10-31-09 | | | 21,932,485 | | | | 8,057,767 | | | | (42,131,776 | ) | | | — | | | | (12,141,524 | ) | | | 208,458,026 | | | | 345,180 | | | | 75,935,416 | | | | (403,753,973 | ) | | | — | | | | (119,015,351 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Q(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 31,392 | | | | 24,859 | | | | (5,338 | ) | | | (2,194,061 | ) | | | (2,143,148 | ) | | | 360,000 | | | | — | | | | 293,336 | | | | (63,436 | ) | | | (25,186,398 | ) | | | (24,596,498 | ) |
| 10-31-09 | | | 1,206,557 | | | | 178,994 | | | | (373,051 | ) | | | — | | | | 1,012,500 | | | | 11,058,551 | | | | 9,674 | | | | 1,690,451 | | | | (3,285,427 | ) | | | — | | | | 9,473,249 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 43,595 | | | | 4,697 | | | | (288,346 | ) | | | 2,198,715 | | | | 1,958,661 | | | | 520,583 | | | | — | | | | 53,646 | | | | (3,319,425 | ) | | | 25,186,398 | | | | 22,441,202 | |
07-20-09(1)-
10-31-09 | | | 288 | | | | — | | | | — | | | | — | | | | 288 | | | | 3,000 | | | | — | | | | — | | | | — | | | | — | | | | 3,000 | |
| |
International Value Choice |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 868,316 | | | | 11,876 | | | | (529,185 | ) | | | — | | | | 351,007 | | | | 8,827,493 | | | | — | | | | 118,571 | | | | (5,346,927 | ) | | | — | | | | 3,599,137 | |
| 10-31-09 | | | 844,928 | | | | 9,558 | | | | (424,179 | ) | | | — | | | | 430,307 | | | | 7,718,059 | | | | — | | | | 78,920 | | | | (3,560,528 | ) | | | — | | | | 4,236,451 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 22,787 | | | | 142 | | | | (44,794 | ) | | | — | | | | (21,865 | ) | | | 227,249 | | | | — | | | | 1,400 | | | | (450,011 | ) | | | — | | | | (221,362 | ) |
| 10-31-09 | | | 37,433 | | | | 40 | | | | (83,839 | ) | | | — | | | | (46,366 | ) | | | 312,771 | | | | — | | | | 332 | | | | (679,570 | ) | | | — | | | | (366,467 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 98,444 | | | | 281 | | | | (38,201 | ) | | | — | | | | 60,524 | | | | 990,343 | | | | — | | | | 2,772 | | | | (385,458 | ) | | | — | | | | 607,657 | |
| 10-31-09 | | | 240,962 | | | | 67 | | | | (117,188 | ) | | | — | | | | 123,841 | | | | 2,061,616 | | | | — | | | | 557 | | | | (940,153 | ) | | | — | | | | 1,122,020 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 602,625 | | | | 22,826 | | | | (609,809 | ) | | | — | | | | 15,642 | | | | 6,193,901 | | | | — | | | | 227,476 | | | | (6,240,504 | ) | | | — | | | | 180,873 | |
| 10-31-09 | | | 496,035 | | | | 64,604 | | | | (2,471,198 | ) | | | — | | | | (1,910,559 | ) | | | 4,189,609 | | | | — | | | | 532,021 | | | | (19,412,031 | ) | | | — | | | | (14,690,401 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 3,055 | | | | — | | | | — | | | | — | | | | 3,055 | | | | 30,970 | | | | — | | | | — | | | | — | | | | — | | | | 30,970 | |
06-01-09(1)-
10-31-09 | | | 327 | | | | — | | | | — | | | | — | | | | 327 | | | | 3,000 | | | | — | | | | — | | | | — | | | | — | | | | 3,000 | |
82
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 12 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Net increase
| | | | | | | | | | |
| | | | | Reinvestment
| | | | (decrease) in
| | | | Reinvestment
| | Redemption
| | | | |
| | | | | of
| | Shares
| | shares
| | | | of
| | fee
| | Shares
| | Net increase
|
Year or
| | Shares sold | | distributions | | redeemed | | outstanding | | Shares sold | | distributions | | proceeds | | redeemed | | (decrease) |
period ended | | # | | # | | # | | # | | ($) | | ($) | | ($) | | ($) | | ($) |
| |
Russia |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,337,889 | | | | — | | | | (1,535,146 | ) | | | (197,257 | ) | | | 45,209,168 | | | | — | | | | 169,526 | | | | (50,913,061 | ) | | | (5,534,367 | ) |
| 10-31-09 | | | 3,136,367 | | | | 3,839,001 | | | | (4,536,852 | ) | | | 2,438,516 | | | | 64,169,973 | | | | 71,291,248 | | | | 262,776 | | | | (78,843,963 | ) | | | 56,880,034 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 227,016 | | | | — | | | | (19,125 | ) | | | 207,891 | | | | 7,581,214 | | | | — | | | | — | | | | (664,153 | ) | | | 6,917,061 | |
09-30-09(1)-
10-31-09 | | | 106 | | | | — | | | | — | | | | 106 | | | | 3,000 | | | | — | | | | — | | | | — | | | | 3,000 | |
| |
Global Bond |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 7,811,995 | | | | 406,257 | | | | (3,515,900 | ) | | | 4,702,352 | | | | 93,730,436 | | | | 4,864,789 | | | | — | | | | (41,697,862 | ) | | | 56,897,363 | |
| 10-31-09 | | | 6,373,003 | | | | 163,753 | | | | (5,903,951 | ) | | | 632,805 | | | | 74,265,421 | | | | 1,865,656 | | | | — | | | | (65,323,554 | ) | | | 10,807,523 | |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 67,720 | | | | 13,147 | | | | (114,075 | ) | | | (33,208 | ) | | | 804,475 | | | | 156,613 | | | | — | | | | (1,348,998 | ) | | | (387,910 | ) |
| 10-31-09 | | | 174,593 | | | | 9,908 | | | | (164,067 | ) | | | 20,434 | | | | 1,952,301 | | | | 111,648 | | | | — | | | | (1,817,097 | ) | | | 246,852 | |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 2,479,149 | | | | 125,858 | | | | (536,099 | ) | | | 2,068,908 | | | | 29,599,275 | | | | 1,502,654 | | | | — | | | | (6,320,317 | ) | | | 24,781,612 | |
| 10-31-09 | | | 2,199,636 | | | | 72,957 | | | | (1,364,310 | ) | | | 908,283 | | | | 25,493,127 | | | | 823,517 | | | | — | | | | (15,196,556 | ) | | | 11,120,088 | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 6,153,846 | | | | 578,823 | | | | (1,057,471 | ) | | | 5,675,198 | | | | 72,610,666 | | | | 6,917,239 | | | | — | | | | (12,472,759 | ) | | | 67,055,146 | |
| 10-31-09 | | | 11,315,341 | | | | 185,482 | | | | (402,479 | ) | | | 11,098,344 | | | | 123,295,021 | | | | 2,192,977 | | | | — | | | | (4,570,432 | ) | | | 120,917,566 | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 147,674 | | | | 22 | | | | (108,075 | ) | | | 39,621 | | | | 1,749,420 | | | | 260 | | | | — | | | | (1,259,481 | ) | | | 490,199 | |
| 10-31-09 | | | 307,733 | | | | 7 | | | | (70,439 | ) | | | 237,301 | | | | 3,487,641 | | | | 79 | | | | — | | | | (797,912 | ) | | | 2,689,808 | |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 490,819 | | | | 13,503 | | | | (91,090 | ) | | | 413,232 | | | | 5,791,168 | | | | 158,478 | | | | — | | | | (1,060,501 | ) | | | 4,889,145 | |
06-01-09(1)-
10-31-09 | | | 130,083 | | | | 372 | | | | (3,321 | ) | | | 127,134 | | | | 1,559,868 | | | | 4,415 | | | | — | | | | (39,978 | ) | | | 1,524,305 | |
| |
Diversified International |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 1,142,082 | | | | 100,614 | | | | (3,530,519 | ) | | | (2,287,823 | ) | | | 9,969,959 | | | | 873,328 | | | | — | | | | (30,873,220 | ) | | | (20,029,933 | ) |
| 10-31-09 | | | 2,533,302 | | | | 1,998,138 | | | | (11,750,100 | ) | | | (7,218,660 | ) | | | 17,593,370 | | | | 13,047,285 | | | | — | | | | (78,261,758 | ) | | | (47,621,103 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 16,957 | | | | 2,543 | | | | (320,054 | ) | | | (300,554 | ) | | | 147,997 | | | | 22,049 | | | | — | | | | (2,763,229 | ) | | | (2,593,183 | ) |
| 10-31-09 | | | 174,017 | | | | 252,791 | | | | (797,854 | ) | | | (371,046 | ) | | | 1,189,186 | | | | 1,650,743 | | | | — | | | | (5,252,991 | ) | | | (2,413,062 | ) |
Class C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 264,520 | | | | 5,029 | | | | (1,615,318 | ) | | | (1,345,769 | ) | | | 2,289,749 | | | | 43,547 | | | | — | | | | (13,971,230 | ) | | | (11,637,934 | ) |
| 10-31-09 | | | 1,304,646 | | | | 901,364 | | | | (4,385,138 | ) | | | (2,179,128 | ) | | | 8,889,191 | | | | 5,877,016 | | | | — | | | | (29,433,360 | ) | | | (14,667,153 | ) |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 916,781 | | | | 3,793 | | | | (273,451 | ) | | | 647,123 | | | | 8,188,848 | | | | 32,808 | | | | — | | | | (2,355,824 | ) | | | 5,865,832 | |
| 10-31-09 | | | 773,346 | | | | 90,151 | | | | (477,064 | ) | | | 386,433 | | | | 5,193,236 | | | | 585,985 | | | | — | | | | (3,165,096 | ) | | | 2,614,125 | |
Class O | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 122,988 | | | | — | | | | (53,793 | ) | | | 69,195 | | | | 1,068,577 | | | | — | | | | — | | | | (459,157 | ) | | | 609,420 | |
| 10-31-09 | | | 276,907 | | | | — | | | | (64,041 | ) | | | 212,866 | | | | 1,938,487 | | | | — | | | | — | | | | (466,642 | ) | | | 1,471,845 | |
Class R | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | — | | | | 143 | | | | (1,769 | ) | | | (1,626 | ) | | | — | | | | 1,233 | | | | — | | | | (15,228 | ) | | | (13,995 | ) |
| 10-31-09 | | | 30 | | | | 3,254 | | | | (4,324 | ) | | | (1,040 | ) | | | 170 | | | | 21,053 | | | | — | | | | (25,429 | ) | | | (4,206 | ) |
Class W | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 04-30-10 | | | 72,441 | | | | 2,777 | | | | (78,913 | ) | | | (3,695 | ) | | | 632,615 | | | | 23,940 | | | | — | | | | (665,705 | ) | | | (9,150 | ) |
| 10-31-09 | | | 178,713 | | | | 16,022 | | | | (92,628 | ) | | | 102,107 | | | | 1,283,459 | | | | 103,822 | | | | — | | | | (615,141 | ) | | | 772,140 | |
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Effective November 20, 2009, Class Q shareholders of Global Value Choice, Foreign, International SmallCap Multi-Manager and International Value were converted to Class W shares of each respective Fund. |
| |
| (3) | | Effective March 8, 2010, Class Q shareholders of Emerging Countries and International Capital Appreciation were converted to Class W shares of each respective Fund. |
83
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 13 — ILLIQUID SECURITIES
Pursuant to guidelines adopted by the Funds’ Board, the following securities have been deemed to be illiquid. The Funds currently limit investments in illiquid securities to 15% of a Fund’s net assets, at market value, at time of purchase. 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.
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial
| | | | | | Percent
|
| | | | | | | Acquisition
| | | | | | of Net
|
Fund | | Security | | Shares | | Date | | Cost | | Value | | Assets |
| |
| Global Equity Dividend | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 123,900 | | | | 09/12/08 | | | $ | 123,900 | | | $ | 99,120 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 123,900 | | | $ | 99,120 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Global Real Estate | | Atrium European Real Estate Ltd. | | | 2,447,030 | | | | 08/20/09 | | | $ | 15,913,805 | | | $ | 14,530,747 | | | | 0.6 | % |
| | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 2,745,317 | | | | 09/12/08 | | | | 2,745,317 | | | | 2,196,253 | | | | 0.1 | % |
| | | Safestore Holdings Ltd. | | | 4,810,468 | | | | 03/09/07 | | | | 15,834,838 | | | | 9,946,923 | | | | 0.4 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 34,493,960 | | | $ | 26,673,923 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Global Value Choice | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 287,772 | | | | 09/12/08 | | | $ | 287,772 | | | $ | 230,218 | | | | 0.1 | % |
| | | Westjet Airlines Ltd. | | | 113,926 | | | | 09/23/09 | | | | 1,186,950 | | | | 1,534,266 | | | | 0.5 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 1,474,722 | | | $ | 1,764,484 | | | | 0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Emerging Countries | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 161,615 | | | | 09/12/08 | | | $ | 161,615 | | | $ | 129,292 | | | | 0.1 | % |
| �� | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 161,615 | | | $ | 129,292 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 173,707 | | | | 09/12/08 | | | $ | 173,707 | | | $ | 138,966 | | | | 0.1 | % |
| | | Rolls-Royce Group PLC — C Shares | | | 3,177,810 | | | | 09/30/05 | | | | 3,957 | | | | 4,862 | | | | 0.0 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 177,664 | | | $ | 143,828 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| International Capital Appreciation | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 79,764 | | | | 09/12/08 | | | $ | 79,764 | | | $ | 63,811 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 79,764 | | | $ | 63,811 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| International Real Estate | | Atrium European Real Estate Ltd. | | | 683,000 | | | | 08/20/09 | | | $ | 4,323,388 | | | $ | 4,055,733 | | | | 0.8 | % |
| | | Central Pattana PCL | | | 1,729,900 | | | | 03/01/06 | | | | 1,135,411 | | | | 1,045,148 | | | | 0.2 | |
| | | LXB Retail Properties PLC | | | 4,875,400 | | | | 10/20/09 | | | | 7,979,509 | | | | 6,734,754 | | | | 1.3 | |
| | | Yatra Capital Ltd. | | | 70,700 | | | | 11/27/06 | | | | 928,614 | | | | 384,438 | | | | 0.1 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 14,366,921 | | | $ | 12,220,073 | | | | 2.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| International SmallCap | | Bank of New York Mellon Corp. | | | | | | | | | | | | | | | | | | | | |
| Multi-Manager | | Institutional Cash Reserves, Series B | | | 79,696 | | | | 09/12/08 | | | $ | 79,696 | | | $ | 63,757 | | | | 0.0 | % |
| | | Bijou Brigitte AG | | | 3,200 | | | | 01/26/10 | | | | 573,917 | | | | 547,026 | | | | 0.1 | |
| | | Felix Resources Ltd. | | | 17,482 | | | | 01/27/10 | | | | 743 | | | | 1,634 | | | | 0.0 | |
| | | Hawesko Holding AG | | | 18,000 | | | | 02/29/08 | | | | 475,161 | | | | 617,546 | | | | 0.1 | |
| | | Newave Energy Holding SA | | | 13,383 | | | | 03/31/08 | | | | 483,224 | | | | 570,849 | | | | 0.1 | |
| | | Oridion Systems Ltd. | | | 80,000 | | | | 05/23/08 | | | | 672,605 | | | | 657,710 | | | | 0.1 | |
| | | Rosenbauer International AG | | | 40,000 | | | | 01/16/08 | | | | 1,344,964 | | | | 1,615,211 | | | | 0.4 | |
| | | SFC Smart Fuel Cell AG | | | 78,000 | | | | 04/14/09 | | | | 694,948 | | | | 596,829 | | | | 0.1 | |
| | | Star Travel Co., Ltd. | | | 20,400 | | | | 12/19/08 | | | | 7,974 | | | | 18,375 | | | | 0.0 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 4,333,233 | | | $ | 4,688,937 | | | | 0.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| International Value | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 1,202,292 | | | | 09/12/08 | | | $ | 1,202,292 | | | $ | 961,834 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 1,202,292 | | | $ | 961,834 | | | | 0.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
84
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 13 — ILLIQUID SECURITIES (continued)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial
| | | | | | Percent
|
| | | | | | | Acquisition
| | | | | | of Net
|
Fund | | Security | | Shares | | Date | | Cost | | Value | | Assets |
| |
| Russia | | Aeroflot — Russian International Airlines | | | 1,800,000 | | | | 08/28/09 | | | $ | 1,874,808 | | | $ | 3,821,002 | | | | 0.8 | % |
| | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B | | | 841,448 | | | | 09/12/08 | | | | 841,448 | | | | 673,158 | | | | 0.1 | |
| | | Bank St. Petersburg BRD — Class S | | | 1,339,000 | | | | 11/02/07 | | | | 6,855,497 | | | | 5,158,957 | | | | 1.1 | |
| | | Bank St Petersburg OJSC | | | 445,000 | | | | 12/22/09 | | | | 1,379,500 | | | | 1,714,515 | | | | 0.4 | |
| | | Holding MRSK OAO | | | 53,769,600 | | | | 07/22/09 | | | | 2,873,519 | | | | 8,468,712 | | | | 1.9 | |
| | | OGK-2 OAO | | | 99,532,300 | | | | 07/22/09 | | | | 2,300,466 | | | | 6,123,859 | | | | 1.4 | |
| | | Protek | | | 250,600 | | | | 04/27/10 | | | | 877,100 | | | | 977,340 | | | | 0.2 | |
| | | RenShares Utilities Ltd. | | | 636,687 | | | | 08/26/05 | | | | 752,296 | | | | 1,837,509 | | | | 0.4 | |
| | | Sibirskiy Cement OAO | | | 100,000 | | | | 08/28/09 | | | | 1,495,000 | | | | 2,425,000 | | | | 0.5 | |
| | | VolgaTelecom | | | 612,800 | | | | 11/11/98 | | | | 651,682 | | | | 2,124,144 | | | | 0.5 | |
| | | Vsmpo-Avisma Corp. | | | 25,750 | | | | 04/06/04 | | | | 2,602,273 | | | | 3,448,668 | | | | 0.8 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 22,503,590 | | | $ | 36,772,864 | | | | 8.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
NOTE 14 — REORGANIZATION
On August 8, 2009, International Capital Appreciation, as listed below (“Acquiring Fund”), acquired the assets and certain liabilities of ING International Growth Opportunities Fund, also listed below (“Acquired Fund”), in a tax-free reorganization in exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired Fund’s shareholders. The number and value of shares issued by the Acquiring Fund are presented in Note 12 — Capital Shares. Net assets and unrealized appreciation as of the reorganization date were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Acquired
| | | | |
| | | | | | | | | Capital Loss
| | Acquired Fund
| | |
Acquiring
| | Acquired
| | Total Net Assets of
| | Total Net Assets of
| | Carryforwards
| | Unrealized
| | Conversion
|
Fund | | Fund | | Acquired Fund (000’s) | | Acquiring Fund (000’s) | | (000’s) | | Appreciation (000’s) | | Ratio |
| |
International
Capital
Appreciation | | ING International Growth
Opportunities Fund | | $ | 54,440 | | | $ | 54,174 | | | $ | 45,649 | | | $ | 894 | | | | 0.8897 | |
The net assets of International Capital Appreciation after the acquisition was $108,614,246.
NOTE 15 — CONCENTRATION OF 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. A 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 the Funds and their corresponding risks, see each Fund’s most recent Prospectus and/or the Statement of Additional Information.
Diversified International is also affected by other kinds of risks, depending on the types of securities held or strategies used by an Underlying Fund.
Investment by Funds-of-Funds (Diversified International). Each of the Underlying Funds’ shares may be purchased by other investment companies. In some cases, an Underlying Fund may experience large inflows or redemptions due to allocations or rebalancings. While it is impossible to predict the overall impact of these transactions over time, there could be adverse effects on portfolio management. The Investment Adviser will monitor transactions by each Underlying Fund and will attempt to minimize any adverse effects on the Underlying Funds and the Fund as a result of these transactions. So long as an Underlying Fund accepts investments by other investment companies, it will not purchase securities of other investment companies, except to the extent permitted by the 1940 Act or under the terms of an exemptive order granted by the SEC.
Foreign Securities (All Funds). Investments in foreign securities may entail risks not present in domestic investments. Since securities in which the Funds and Underlying Funds may invest are denominated in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds and Underlying Funds. Foreign investments may also subject the Funds and Underlying Funds to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, as well as changes vis-a-vis the U.S. dollar from movements in currency, and changes in security value and interest rate, all of
85
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 15 — CONCENTRATION OF RISKS (continued)
which could affect the market and/or credit risk of the Funds’ and Underlying Funds’ investments.
Non-Diversified (Global Natural Resources, Global Real Estate, Asia-Pacific Real Estate, European Real Estate, Greater China, International Real Estate, Russia and Global Bond). Certain of the Funds and Underlying Funds are classified as non-diversified investment companies under the 1940 Act, which means that they are not limited by the 1940 Act in the proportion of assets that they may invest in the obligations of a single issuer. Declines in the value of that single company can significantly impact the value of a Fund or Underlying Fund. The investment of a large percentage of a Fund’s or Underlying Fund’s assets in the securities of a small number of issuers may cause a Fund’s share price to fluctuate more than that of a diversified investment company. Conversely, even though classified as non-diversified, a Fund or Underlying Fund may actually maintain a portfolio that is diversified with a large number of issuers. In such an event, a Fund or Underlying Fund would benefit less from appreciation in a single corporate issuer than if it had greater exposure to that issuer.
Lehman Brothers Holdings, Inc. (LBHI) and certain of its affiliates sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. Global Bond had outstanding securities trades with counterparties affiliated with LBHI. As a result of these events, LBHI’s affiliates were unable to fulfill their commitments and, in certain cases, Global Bond may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. Management has determined that the financial impact to the Funds relating to these events is immaterial.
NOTE 16 — 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 Bank of New York Mellon Corp. Institutional Cash Reserves Fund (“BICR Fund”). BNY serves as investment manager, custodian and operational trustee of the BICR Fund. As of April 30, 2010, the BICR Fund held certain defaulted securities issued by Lehman Brothers Holdings, Inc. (the “Lehman Securities”) in a separate sleeve designated as Series B. 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 the BICR Fund, 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 the BICR Fund includes the value of the underlying securities held by the BICR Fund and the estimated value of the support to be provided by BNYC. The investment in the BICR Fund is included in the Portfolio of Investments under Securities Lending Collateral and the unrealized loss on such investment 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 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
86
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 16 — SECURITIES LENDING (continued)
leveraging effect, which may intensify the credit, market and other risks associated with investing in a Fund. At April 30, 2010, the following Funds had securities on loan with the following market values:
| | | | | | | | | |
| | | Value of
| | Cash
|
| | | Securities
| | Collateral
|
| | | Loaned | | Received* |
| |
| Global Equity Dividend | | $ | 1,348,967 | | | $ | 1,417,400 | |
| Global Real Estate | | | 34,077,088 | | | | 35,379,069 | |
| Global Value Choice | | | 15,369,854 | | | | 16,010,478 | |
| Emerging Countries | | | 2,975,211 | | | | 3,120,585 | |
| Foreign | | | 3,020,239 | | | | 3,616,510 | |
| International Capital Appreciation | | | 8,554,903 | | | | 9,305,318 | |
| International SmallCap Multi-Manager | | | 1,740,502 | | | | 1,926,065 | |
| International Value | | | 3,749,098 | | | | 3,939,699 | |
| Russia | | | 17,399,221 | | | | 19,569,185 | |
| |
| * | Cash collateral received was invested in the BICR Fund, the fair value of which is presented in the respective Funds’ Portfolios of Investments. |
NOTE 17 — 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, income from passive foreign investment corporations, 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
| | |
| | | April 30, 2010 | | Year Ended October 31, 2009 |
| | | Ordinary
| | Ordinary
| | Long-Term
| | Return
|
| | | Income | | Income | | Capital Gains | | of Capital |
| |
| Global Equity Dividend | | $ | 1,142,934 | | | $ | 3,022,341 | | | $ | — | | | $ | 229,828 | |
| Global Natural Resources | | | 302,907 | | | | 254,842 | | | | 5,303,255 | | | | — | |
Global Real Estate(1) | | | 14,477,162 | | | | 102,494,757 | | | | — | | | | — | |
| Global Value Choice | | | 1,050,663 | | | | — | | | | — | | | | — | |
| Asia-Pacific Real Estate | | | 422,842 | | | | 77,255 | | | | — | | | | — | |
| Emerging Countries | | | — | | | | 2,865,899 | | | | — | | | | �� | |
| European Real Estate | | | 376,076 | | | | 184,852 | | | | — | | | | — | |
| Foreign | | | — | | | | 11,395,047 | | | | — | | | | — | |
| Greater China | | | 675,383 | | | | 96,917 | | | | 1,915,018 | | | | — | |
| Index Plus International Equity | | | 2,113,264 | | | | 4,688,144 | | | | — | | | | — | |
| International Capital Appreciation | | | — | | | | 1,501,867 | | | | — | | | | 36,098 | |
| International Real Estate | | | 36,860,440 | | | | 11,137,666 | | | | — | | | | — | |
| International SmallCap Multi-Manager | | | 5,651,225 | | | | 11,110,977 | | | | — | | | | — | |
| International Value | | | 26,116,194 | | | | 96,517,633 | | | | 257,239,139 | | | | — | |
| International Value Choice | | | 364,324 | | | | 620,515 | | | | — | | | | — | |
| Russia | | | — | | | | — | | | | 82,435,965 | | | | — | |
| Global Bond | | | 16,268,086 | | | | 6,115,579 | | | | — | | | | — | |
| Diversified International | | | 1,221,231 | | | | 27,653,940 | | | | — | | | | — | |
| | |
| (1) | | Composition of dividends and distributions presented herein is based on the Fund’s current tax period (four months ended April 30, 2010) and tax year ended December 31, 2009. Composition of current period amounts may change after the Fund’s tax year-end of December 31, 2010. |
87
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 17 — FEDERAL INCOME TAXES (continued)
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 October 31, 2009 were:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Undistributed
| | Unrealized
| | Post-October
| | Post-October
| | | | |
| | | Ordinary
| | Appreciation/
| | Capital Loss
| | Currency Loss
| | Capital Loss
| | Expiration
|
| | | Income | | (Depreciation) | | Deferred | | Deferred | | Carryforwards | | Dates |
| |
| Global Equity Dividend | | $ | — | | | $ | (2,543,220 | ) | | $ | — | | | $ | — | | | $ | (24,895,240 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (71,676,150 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (96,571,390 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Global Natural Resources | | | 94,433 | | | | 3,036,634 | | | | — | | | | — | | | | (22,589,197 | ) | | | 2017 | |
Global Real Estate(1) | | | 3,670,004 | | | | 26,555,503 | | | | (8,926,950 | ) | | | (57,546 | ) | | | (164,232,218 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (416,047,943 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (580,280,161 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Global Value Choice | | | 1,050,362 | | | | 20,538,634 | | | | — | | | | — | | | | (81,779,077 | ) | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | (6,183,953 | ) | | | 2011 | |
| | | | | | | | | | | | | | | | | | | | (7,949,386 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (95,912,416 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Asia-Pacific Real Estate | | | 337,822 | | | | (641,115 | ) | | | — | | | | — | | | | (1,331,831 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (3,292,541 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (4,624,372 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Emerging Countries | | | — | | | | 22,532,186 | | | | — | | | | — | | | | (53,090,356 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (41,200,730 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (94,291,086 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| European Real Estate | | | 288,525 | | | | (489,318 | ) | | | — | | | | — | | | | (872,339 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (797,828 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (1,670,167 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Foreign | | | — | | | | 35,974,205 | | | | — | | | | — | | | | (73,349,517 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (80,200,325 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (153,549,842 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Greater China | | | 675,252 | | | | 5,289,449 | | | | — | | | | — | | | | (5,201,600 | ) | | | 2017 | |
| Index Plus International Equity | | | 1,980,510 | | | | 1,437,554 | | | | — | | | | — | | | | (37,732,800 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (46,665,971 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (84,398,771 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| International Capital Appreciation | | | — | | | | 3,455,941 | | | | — | | | | — | | | | (4,921,856 | ) | | | 2015 | |
| | | | | | | | | | | | | | | | | | | | (46,983,912 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (14,842,759 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (66,748,527 | )* | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| International Real Estate | | | 31,510,476 | | | | (52,554,571 | ) | | | — | | | | — | | | | (26,312 | ) | | | 2014 | |
| | | | | | | | | | | | | | | | | | | | (2,556,095 | ) | | | 2015 | |
| | | | | | | | | | | | | | | | | | | | (67,952,089 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (155,633,473 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (226,167,969 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
88
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 17 — FEDERAL INCOME TAXES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Undistributed
| | Unrealized
| | Post-October
| | Post-October
| | | | |
| | | Ordinary
| | Appreciation/
| | Capital Loss
| | Currency Loss
| | Capital Loss
| | Expiration
|
| | | Income | | (Depreciation) | | Deferred | | Deferred | | Carryforwards | | Dates |
| |
| International SmallCap Multi-Manager | | | 5,650,507 | | | | 18,384,209 | | | | — | | | | — | | | | (153,088,443 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (202,601,991 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (355,690,434 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| International Value | | | 26,116,366 | | | | (140,589,828 | ) | | | — | | | | — | | | | (810,375,946 | ) | | | 2017 | |
| International Value Choice | | | 314,319 | | | | (3,448,641 | ) | | | — | | | | — | | | | (104,782 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (14,657,112 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (14,761,894 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Russia | | | — | | | | (15,763,775 | ) | | | — | | | | — | | | | (70,982,152 | ) | | | 2017 | |
| Global Bond | | | 8,319,175 | | | | 20,754,518 | | | | — | | | | — | | | | — | | | | | |
| Diversified International | | | — | | | | (55,187,905 | ) | | | — | | | | — | | | | (28,060,058 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | | | (93,445,922 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (121,505,980 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | As of the Fund’s tax year ended December 31, 2009. |
| |
| * | | Utilization of these capital losses is subject to annual limitations under Section 382 of the Internal Revenue Code. |
The Funds’ major tax jurisdictions are federal and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2004.
As of April 30, 2010, no provisions for income tax would be required in the Funds’ financial statements as a result of tax positions taken on federal 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.
NOTE 18 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS
As discussed in earlier supplements that were previously filed with the SEC, ING agreed with the Funds to indemnify and hold harmless the Funds from all damages resulting from wrongful conduct by ING or its employees or from ING’s internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the U.S. Securities and Exchange Commission in connection with investigations related to mutual funds and variable insurance products. On December 17, 2008, ING settled its indemnification commitments by making payments to the affected Funds. In connection with the settlement, ING paid:
| | | | | |
| |
| Emerging Countries | | $ | 1,400,280 | |
| Index Plus International Equity | | $ | 497,810 | |
| International SmallCap Multi-Manager | | $ | 2,661,920 | |
| International Value | | $ | 955,441 | |
NOTE 19 — SUBSEQUENT EVENTS
Subsequent to April 30, 2010, the following Fund paid dividends from net investment income:
| | | | | | | | | | | | | |
| | | Per Share
| | Payable
| | Record
|
| | | Amount | | Date | | Date |
| |
| Global Bond | | | | | | | | | | | | |
| Class A | | $ | 0.0348 | | | | May 4, 2010 | | | | April 30, 2010 | |
| Class B | | $ | 0.0276 | | | | May 4, 2010 | | | | April 30, 2010 | |
| Class C | | $ | 0.0276 | | | | May 4, 2010 | | | | April 30, 2010 | |
| Class I | | $ | 0.0379 | | | | May 4, 2010 | | | | April 30, 2010 | |
| Class O | | $ | 0.0347 | | | | May 4, 2010 | | | | April 30, 2010 | |
| Class W | | $ | 0.0371 | | | | May 4, 2010 | | | | April 30, 2010 | |
| Class A | | $ | 0.0287 | | | | June 2, 2010 | | | | May 28, 2010 | |
| Class B | | $ | 0.0214 | | | | June 2, 2010 | | | | May 28, 2010 | |
| Class C | | $ | 0.0215 | | | | June 2, 2010 | | | | May 28, 2010 | |
| Class I | | $ | 0.0322 | | | | June 2, 2010 | | | | May 28, 2010 | |
| Class O | | $ | 0.0288 | | | | June 2, 2010 | | | | May 28, 2010 | |
| Class W | | $ | 0.0313 | | | | June 2, 2010 | | | | May 28, 2010 | |
On March 25, 2010, the Board approved changing the name and sub-adviser for Foreign. Subject to shareholder approval, effective on or about June 30, 2010, Foreign will be renamed ING Global Opportunities Fund and will be sub-advised by ING Investment Management Advisors B.V.
89
NOTES TO FINANCIAL STATEMENTS as of April 30, 2010 (Unaudited) (continued)
NOTE 19 — SUBSEQUENT EVENTS (continued)
On May 27, 2010, the Board approved changing the sub-adviser of Index Plus International Equity. Effective June 30, 2010, ING IM will begin managing the Fund pursuant to an interim sub-advisory agreement until a shareholder meeting is held on or about September 28, 2010 to approve the change.
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.
90
ING Global Equity Dividend Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 91.8% |
| | | | | | | |
| | | | | | | Australia: 5.2% |
| | 65,062 | | | | | Australia & New Zealand Banking Group Ltd. | | $ | 1,441,076 | |
| | 280,526 | | | | | Foster’s Group Ltd. | | | 1,405,772 | |
| | 301,820 | | | | | Insurance Australia Group | | | 1,061,301 | |
| | 232,504 | | | | | Macquarie Airports Management Ltd. | | | 666,489 | |
| | 510,178 | | | | | Telstra Corp. Ltd. | | | 1,494,766 | |
| | 48,258 | | | | | Wesfarmers Ltd. | | | 1,293,667 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,363,071 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 0.4% |
| | 40,086 | | | | | Tele Norte Leste Participacoes SA ADR | | | 595,678 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 595,678 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 1.7% |
| | 30,496 | | | | | Enerplus Resources Fund | | | 742,578 | |
| | 48,339 | | | L | | TransCanada Corp. | | | 1,705,523 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,448,101 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.8% |
| | 93,801 | | | @ | | Nokia OYJ | | | 1,146,768 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,146,768 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 7.0% |
| | 29,664 | | | | | Carrefour S.A. | | | 1,453,946 | |
| | 37,744 | | | | | Gaz de France | | | 1,342,309 | |
| | 19,140 | | | | | Lafarge S.A. | | | 1,387,694 | |
| | 17,803 | | | @ | | Sanofi-Aventis | | | 1,214,496 | |
| | 24,716 | | | | | Total S.A. | | | 1,344,733 | |
| | 24,265 | | | | | Vinci S.A. | | | 1,352,177 | |
| | 72,580 | | | | | Vivendi | | | 1,903,953 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,999,308 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 4.5% |
| | 12,401 | | | | | Allianz AG | | | 1,421,715 | |
| | 14,847 | | | | | Deutsche Boerse AG | | | 1,152,610 | |
| | 40,259 | | | | | E.ON AG | | | 1,484,664 | |
| | 9,265 | | | | | Muenchener Rueckversicherungs AG | | | 1,305,752 | |
| | 10,726 | | | | | Siemens AG | | | 1,057,866 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,422,607 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.9% |
| | 27,826 | | | | | China Mobile Ltd. ADR | | | 1,360,691 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,360,691 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.6% |
| | 29,577 | | | | | CRH PLC | | | 842,712 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 842,712 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 2.6% |
| | 53,462 | | | | | Banche Popolari Unite Scpa | | | 662,064 | |
| | 91,387 | | | | | ENI S.p.A. | | | 2,042,440 | |
| | 287,055 | | | @ | | Intesa Sanpaolo S.p.A. | | | 946,110 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,650,614 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 9.2% |
| | 15,100 | | | | | Canon, Inc. | | | 690,724 | |
| | 273,000 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 1,422,612 | |
| | 676,100 | | | | | Mizuho Financial Group, Inc. | | | 1,301,849 | |
| | 6,400 | | | | | Nintendo Co., Ltd. | | | 2,149,936 | |
| | 972 | | | | | NTT DoCoMo, Inc. | | | 1,512,230 | |
| | 40,600 | | | | | Seven & I Holdings Co., Ltd. | | | 1,038,186 | |
| | 63,200 | | | | | Shiseido Co., Ltd. | | | 1,324,889 | |
| | 61,300 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 2,027,304 | |
| | 23,500 | | | | | Takeda Pharmaceutical Co., Ltd. | | | 1,008,981 | |
| | 19,000 | | | | | Trend Micro, Inc. | | | 644,543 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,121,254 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 1.6% |
| | 70,834 | | | | | Royal Dutch Shell PLC | | | 2,222,632 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,222,632 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.5% |
| | 83,221 | | | | | Orkla ASA | | | 701,193 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 701,193 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.8% |
| | 104,500 | | | | | DBS Group Holdings Ltd. | | | 1,150,649 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,150,649 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 1.6% |
| | 76,991 | | | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 1,012,601 | |
| | 59,690 | | | | | Telefonica S.A. | | | 1,351,098 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,363,699 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.1% |
| | 132,464 | | | | | Telefonaktiebolaget LM Ericsson | | | 1,528,705 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,528,705 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 2.0% |
| | 9,370 | | | | | Alcon, Inc. | | | 1,460,408 | |
| | 29,161 | | | | | Credit Suisse Group | | | 1,338,425 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,798,833 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.0% |
| | 141,781 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 1,501,461 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,501,461 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 8.9% |
| | 30,567 | | | | | AstraZeneca PLC | | | 1,350,660 | |
| | 166,409 | | | | | Balfour Beatty PLC | | | 704,352 | |
| | 233,232 | | | | | BP PLC | | | 2,034,235 | |
| | 69,620 | | | | | GlaxoSmithKline PLC | | | 1,292,220 | |
| | 132,264 | | | | | HSBC Holdings PLC | | | 1,346,773 | |
| | 183,852 | | | | | Reed Elsevier PLC | | | 1,439,368 | |
| | 86,743 | | | | | Scottish & Southern Energy PLC | | | 1,438,541 | |
| | 279,653 | | | | | Thomas Cook Group PLC | | | 1,060,865 | |
| | 162,768 | | | | | United Utilities Group PLC | | | 1,331,982 | |
| | 323,879 | | | | | Vodafone Group PLC | | | 717,671 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,716,667 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 41.4% |
| | 26,467 | | | | | Abbott Laboratories | | | 1,354,052 | |
| | 36,560 | | | | | AGL Resources, Inc. | | | 1,444,486 | |
| | 19,079 | | | | | Air Products & Chemicals, Inc. | | | 1,464,886 | |
| | 53,783 | | | | | Altria Group, Inc. | | | 1,139,662 | |
| | 40,380 | | | | | American Electric Power Co., Inc. | | | 1,385,034 | |
| | 54,383 | | | | | Arthur J. Gallagher & Co. | | | 1,428,641 | |
| | 84,045 | | | | | AT&T, Inc. | | | 2,190,213 | |
| | 17,852 | | | | | Automatic Data Processing, Inc. | | | 774,063 | |
| | 15,492 | | | | | Baxter International, Inc. | | | 731,532 | |
| | 54,125 | | | | | Bristol-Myers Squibb Co. | | | 1,368,821 | |
| | 20,157 | | | | | Campbell Soup Co. | | | 722,830 | |
| | 26,497 | | | | | Chevron Corp. | | | 2,157,916 | |
| | 25,819 | | | | | Coca-Cola Co. | | | 1,380,026 | |
| | 31,708 | | | | | Consolidated Edison, Inc. | | | 1,433,202 | |
| | 12,260 | | | | | Cullen/Frost Bankers, Inc. | | | 727,754 | |
| | 35,970 | | | | | EI Du Pont de Nemours & Co. | | | 1,433,045 | |
| | 21,604 | | | | | Emerson Electric Co. | | | 1,128,377 | |
| | 37,169 | | | | | Exelon Corp. | | | 1,620,197 | |
| | 21,564 | | | | | ExxonMobil Corp. | | | 1,463,117 | |
| | 26,853 | | | | | Flowers Foods, Inc. | | | 707,845 | |
| | 57,774 | | | | | General Electric Co. | | | 1,089,618 | |
| | 61,847 | | | | | H&R Block, Inc. | | | 1,132,419 | |
| | 39,940 | | | | | Honeywell International, Inc. | | | 1,895,952 | |
| | 60,695 | | | | | Intel Corp. | | | 1,385,667 | |
| | 22,623 | | | | | Johnson & Johnson | | | 1,454,659 | |
| | 28,997 | | | | | Kimberly-Clark Corp. | | | 1,776,356 | |
| | 11,377 | | | @ | | Kinder Morgan Energy Partners LP | | | 767,834 | |
See Accompanying Notes to Financial Statements
91
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United States (continued) |
| | 58,153 | | | | | Kraft Foods, Inc. | | $ | 1,721,329 | |
| | 35,010 | | | | | Linear Technology Corp. | | | 1,052,401 | |
| | 8,935 | | | | | Lorillard, Inc. | | | 700,236 | |
| | 27,008 | | | | | McDonald’s Corp. | | | 1,906,495 | |
| | 40,852 | | | | | Merck & Co., Inc. | | | 1,431,454 | |
| | 24,173 | | | | | Nucor Corp. | | | 1,095,520 | |
| | 37,011 | | | | | NYSE Euronext | | | 1,207,669 | |
| | 125,356 | | | | | Pfizer, Inc. | | | 2,095,952 | |
| | 27,099 | | | | | Philip Morris International, Inc. | | | 1,330,019 | |
| | 89,418 | | | | | Pitney Bowes, Inc. | | | 2,271,213 | |
| | 16,302 | | | | | Procter & Gamble Co. | | | 1,013,332 | |
| | 27,212 | | | | | Reynolds American, Inc. | | | 1,453,665 | |
| | 76,602 | | | | | Sara Lee Corp. | | | 1,089,280 | |
| | 16,670 | | | | | Snap-On, Inc. | | | 803,161 | |
| | 54,602 | | | | | Southern Co. | | | 1,887,045 | |
| | 47,170 | | | | | Spectra Energy Corp. | | | 1,100,948 | |
| | 26,295 | | | | | Travelers Cos., Inc. | | | 1,334,208 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 59,052,131 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $121,686,577) | | | 130,986,774 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 2.0% |
| | | | | | | |
| | | | | | | Australia: 0.5% |
| | 64,981 | | | | | Westfield Group | | | 767,517 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 767,517 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.5% |
| | 11,288 | | | | | Corio NV | | | 653,041 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 653,041 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.5% |
| | 65,293 | | | | | Land Securities Group PLC | | | 652,963 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 652,963 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 0.5% |
| | 15,809 | | | | | Rayonier, Inc. | | | 774,325 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 774,325 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $3,329,103) | | | 2,847,846 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.0% |
| | | | | | | |
| | | | | | | Germany: 1.0% |
| | 15,103 | | | | | Volkswagen AG | | | 1,459,149 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $1,338,832) | | | 1,459,149 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $126,354,512) | | | 135,293,769 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 1.0% |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 1.0% |
| | 1,293,500 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | | 1,293,500 | |
| | 123,900 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 99,120 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $1,417,400) | | | 1,392,620 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $127,771,912)* | | | 95.8 | % | | $ | 136,686,389 | |
| | | | | Other Assets and
Liabilities - Net | | | 4.2 | | | | 5,992,469 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 142,678,858 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| | | |
| * | | Cost for federal income tax purposes is $133,772,769. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 14,622,654 | |
| Gross Unrealized Depreciation | | | (11,709,034 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 2,913,620 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Agriculture | | | 3.2 | % |
| Auto Manufacturers | | | 1.0 | |
| Banks | | | 9.4 | |
| Beverages | | | 2.0 | |
| Building Materials | | | 1.6 | |
| Chemicals | | | 2.0 | |
| Commercial Services | | | 1.3 | |
| Cosmetics/Personal Care | | | 1.6 | |
| Diversified | | | 0.9 | |
| Diversified Financial Services | | | 1.7 | |
| Electric | | | 7.4 | |
| Electrical Components & Equipment | | | 0.8 | |
| Engineering & Construction | | | 1.9 | |
| Food | | | 4.5 | |
| Forest Products & Paper | | | 0.6 | |
| Gas | | | 1.0 | |
| Hand/Machine Tools | | | 0.6 | |
| Healthcare — Products | | | 2.6 | |
| Household Products/Wares | | | 1.2 | |
| Insurance | | | 4.6 | |
| Internet | | | 0.5 | |
| Iron/Steel | | | 0.8 | |
| Leisure Time | | | 0.7 | |
| Media | | | 2.3 | |
| Miscellaneous Manufacturing | | | 2.8 | |
| Office/Business Equipment | | | 2.1 | |
| Oil & Gas | | | 8.4 | |
| Pharmaceuticals | | | 7.8 | |
| Pipelines | | | 2.5 | |
| Retail | | | 3.0 | |
| Semiconductors | | | 2.8 | |
| Shopping Centers | | | 0.5 | |
| Telecommunications | | | 8.3 | |
| Toys/Games/Hobbies | | | 1.5 | |
| Water | | | 0.9 | |
| Short-Term Investments | | | 1.0 | |
| Other Assets and Liabilities — Net | | | 4.2 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
92
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of April 30, 2010 (Unaudited) (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 7,363,071 | | | $ | — | | | $ | 7,363,071 | |
| Brazil | | | 595,678 | | | | — | | | | — | | | | 595,678 | |
| Canada | | | 2,448,101 | | | | — | | | | — | | | | 2,448,101 | |
| Finland | | | — | | | | 1,146,768 | | | | — | | | | 1,146,768 | |
| France | | | — | | | | 9,999,308 | | | | — | | | | 9,999,308 | |
| Germany | | | — | | | | 6,422,607 | | | | — | | | | 6,422,607 | |
| Hong Kong | | | 1,360,691 | | | | — | | | | — | | | | 1,360,691 | |
| Ireland | | | — | | | | 842,712 | | | | — | | | | 842,712 | |
| Italy | | | — | | | | 3,650,614 | | | | — | | | | 3,650,614 | |
| Japan | | | — | | | | 13,121,254 | | | | — | | | | 13,121,254 | |
| Netherlands | | | — | | | | 2,222,632 | | | | — | | | | 2,222,632 | |
| Norway | | | — | | | | 701,193 | | | | — | | | | 701,193 | |
| Singapore | | | — | | | | 1,150,649 | | | | — | | | | 1,150,649 | |
| Spain | | | — | | | | 2,363,699 | | | | — | | | | 2,363,699 | |
| Sweden | | | — | | | | 1,528,705 | | | | — | | | | 1,528,705 | |
| Switzerland | | | 1,460,408 | | | | 1,338,425 | | | | — | | | | 2,798,833 | |
| Taiwan | | | 1,501,461 | | | | — | | | | — | | | | 1,501,461 | |
| United Kingdom | | | 1,346,773 | | | | 11,369,894 | | | | — | | | | 12,716,667 | |
| United States | | | 59,052,131 | | | | — | | | | — | | | | 59,052,131 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 67,765,243 | | | | 63,221,531 | | | | — | | | | 130,986,774 | |
| | | | | | | | | | | | | | | | | |
| Real Estate Investment Trusts | | | 774,325 | | | | 2,073,521 | | | | — | | | | 2,847,846 | |
| Preferred Stock | | | — | | | | 1,459,149 | | | | — | | | | 1,459,149 | |
| Short-Term Investments | | | 1,293,500 | | | | — | | | | 99,120 | | | | 1,392,620 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 69,833,068 | | | $ | 66,754,201 | | | $ | 99,120 | | | $ | 136,686,389 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 99,120 | | | $ | — | | | $ | 99,120 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 99,120 | | | $ | — | | | $ | 99,120 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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.
| |
| ˆ | 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 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
93
PORTFOLIO OF INVESTMENTS
ING Global Natural Resources Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 97.8% |
| | | | | | | |
| | | | | | | Australia: 1.3% |
| | 290,321 | | | @ | | Australian Worldwide Exploration Ltd. | | $ | 656,125 | |
| | 183,367 | | | @ | | Fortescue Metals Group Ltd. | | | 763,107 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,419,232 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bahamas: 0.6% |
| | 26,800 | | | | | Teekay Shipping Corp. | | | 671,340 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 671,340 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 24.4% |
| | 80,449 | | | | | Barrick Gold Corp. | | | 3,503,554 | |
| | 56,387 | | | | | Canadian Natural Resources Ltd. | | | 4,338,416 | |
| | 81,800 | | | @ | | Centerra Gold, Inc. | | | 918,821 | |
| | 17,400 | | | @ | | Domtar Corp. | | | 1,232,616 | |
| | 97,007 | | | | | EnCana Corp. | | | 3,208,021 | |
| | 43,308 | | | | | GoldCorp, Inc. | | | 1,872,205 | |
| | 94,738 | | | @ | | Kinross Gold Corp. | | | 1,797,180 | |
| | 168,500 | | | @ | | Lundin Mining Corp. | | | 794,561 | |
| | 109,317 | | | | | Nexen, Inc. | | | 2,654,217 | |
| | 136,565 | | | | | Suncor Energy, Inc. | | | 4,666,426 | |
| | 49,429 | | | @ | | Teck Cominco Ltd. — Class B | | | 1,938,605 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,924,622 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.9% |
| | 1,241,334 | | | | | China Petroleum & Chemical Corp. | | | 995,300 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 995,300 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 0.9% |
| | 139 | | | | | Inpex Holdings, Inc. | | | 978,159 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 978,159 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.4% |
| | 41,973 | | | | | Royal Dutch Shell PLC ADR — Class A | | | 2,633,806 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,633,806 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 2.3% |
| | 21,597 | | | @ | | Lukoil-Spon ADR | | | 1,239,668 | |
| | 57,556 | | | | | OAO Gazprom ADR | | | 1,336,450 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,576,118 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.7% |
| | 546,000 | | | | | Thai Oil PCL | | | 781,209 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 781,209 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 3.7% |
| | 82,326 | | | @ | | Anglo American PLC ADR | | | 1,732,962 | |
| | 39,944 | | | @ | | Dana Petroleum PLC | | | 736,566 | |
| | 31,260 | | | | | Rio Tinto PLC ADR | | | 1,589,884 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,059,412 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 60.6% |
| | 40,029 | | | @ | | Alpha Natural Resources, Inc. | | | 1,884,565 | |
| | 41,987 | | | | | Apache Corp. | | | 4,272,597 | |
| | 71,809 | | | | | Arch Coal, Inc. | | | 1,938,843 | |
| | 16,100 | | | | | Baker Hughes, Inc. | | | 801,136 | |
| | 23,300 | | | @ | | Bill Barrett Corp. | | | 794,064 | |
| | 81,708 | | | @ | | Cal Dive International, Inc. | | | 536,004 | |
| | 15,213 | | | @ | | Cameron International Corp. | | | 600,305 | |
| | 58,167 | | | | | Chevron Corp. | | | 4,737,120 | |
| | 43,700 | | | @ | | Coeur d’Alene Mines Corp. | | | 783,104 | |
| | 33,900 | | | @ | | Complete Production Services, Inc. | | | 511,551 | |
| | 126,216 | | | | | ConocoPhillips | | | 7,470,726 | |
| | 9,000 | | | @ | | Contango Oil & Gas Co. | | | 494,100 | |
| | 69,200 | | | @ | | Denbury Resources, Inc. | | | 1,325,180 | |
| | 32,887 | | | | | Devon Energy Corp. | | | 2,214,282 | |
| | 33,865 | | | | | Ensco International PLC ADR | | | 1,597,751 | |
| | 107,901 | | | | | ExxonMobil Corp. | | | 7,321,083 | |
| | 23,932 | | | | | Freeport-McMoRan Copper & Gold, Inc. | | | 1,807,584 | |
| | 46,328 | | | | | Halliburton Co. | | | 1,419,953 | |
| | 28,400 | | | @ | | Helix Energy Solutions Group, Inc. | | | 414,072 | |
| | 43,200 | | | | | Hess Corp. | | | 2,745,360 | |
| | 81,070 | | | | | International Paper Co. | | | 2,167,812 | |
| | 9,500 | | | | | Kaiser Aluminum Corp. | | | 381,805 | |
| | 18,100 | | | @ | | McMoRan Exploration Co. | | | 216,114 | |
| | 33,400 | | | | | Murphy Oil Corp. | | | 2,009,010 | |
| | 70,578 | | | | | National Oilwell Varco, Inc. | | | 3,107,549 | |
| | 53,034 | | | | | Peabody Energy Corp. | | | 2,477,748 | |
| | 25,300 | | | | | Penn Virginia Corp. | | | 645,403 | |
| | 85,891 | | | | | Schlumberger Ltd. | | | 6,134,335 | |
| | 52,677 | | | | | Smith International, Inc. | | | 2,515,854 | |
| | 7,058 | | | @ | | Transocean Ltd. | | | 511,352 | |
| | 17,344 | | | | | United States Steel Corp. | | | 948,023 | |
| | 46,130 | | | | | XTO Energy, Inc. | | | 2,192,098 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 66,976,483 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $92,962,634) | | | 108,015,681 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 1.1% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 1.1% |
| | 1,276,000 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 1,276,000 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $1,276,000) | | | 1,276,000 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $94,238,634)* | | | 98.9 | % | | $ | 109,291,681 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.1 | | | | 1,179,762 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 110,471,443 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| | | |
| * | | Cost for federal income tax purposes is $98,183,556. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 17,398,037 | |
| Gross Unrealized Depreciation | | | (6,289,912 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 11,108,125 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Coal | | | 5.7 | % |
| Forest Products & Paper | | | 3.1 | |
| Iron/Steel | | | 1.6 | |
| Mining | | | 15.5 | |
| Oil & Gas | | | 56.8 | |
| Oil & Gas Services | | | 14.5 | |
| Transportation | | | 0.6 | |
| Short-Term Investments | | | 1.1 | |
| Other Assets and Liabilities — Net | | | 1.1 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
94
PORTFOLIO OF INVESTMENTS
ING Global Natural Resources Fund
as of April 30, 2010 (Unaudited) (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 1,419,232 | | | $ | — | | | $ | 1,419,232 | |
| Bahamas | | | 671,340 | | | | — | | | | — | | | | 671,340 | |
| Canada | | | 26,924,622 | | | | — | | | | — | | | | 26,924,622 | |
| China | | | — | | | | 995,300 | | | | — | | | | 995,300 | |
| Japan | | | — | | | | 978,159 | | | | — | | | | 978,159 | |
| Netherlands | | | 2,633,806 | | | | — | | | | — | | | | 2,633,806 | |
| Russia | | | 2,576,118 | | | | — | | | | — | | | | 2,576,118 | |
| Thailand | | | — | | | | 781,209 | | | | — | | | | 781,209 | |
| United Kingdom | | | 1,589,884 | | | | 2,469,528 | | | | — | | | | 4,059,412 | |
| United States | | | 66,976,483 | | | | — | | | | — | | | | 66,976,483 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 101,372,253 | | | | 6,643,428 | | | | — | | | | 108,015,681 | |
| | | | | | | | | | | | | | | | | |
| Short-Term Investments | | | 1,276,000 | | | | — | | | | — | | | | 1,276,000 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 102,648,253 | | | $ | 6,643,428 | | | $ | — | | | $ | 109,291,681 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| # | 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
95
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 33.6% |
| | | | | | | |
| | | | | | | Australia: 0.6% |
| | 1,948,610 | | | | | Lend Lease Corp. Ltd. | | $ | 15,337,407 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,337,407 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 0.7% |
| | 1,020,000 | | | | | Brookfield Properties Co. | | | 16,299,600 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,299,600 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 14.1% |
| | 5,478,157 | | | | | Cheung Kong Holdings Ltd. | | | 67,555,820 | |
| | 1,649,500 | | | | | Great Eagle Holding Co. | | | 4,615,925 | |
| | 3,316,800 | | | | | Hang Lung Group Ltd. | | | 16,203,491 | |
| | 5,019,300 | | | | | Hang Lung Properties Ltd. | | | 18,055,810 | |
| | 1,436,500 | | | | | Henderson Land Development Co., Ltd. | | | 9,054,080 | |
| | 5,774,500 | | | | | Hongkong Land Holdings Ltd. | | | 30,547,001 | |
| | 1,164,800 | | | | | Hysan Development Co., Ltd. | | | 3,417,457 | |
| | 4,037,600 | | | | | Kerry Properties Ltd. | | | 18,625,172 | |
| | 9,508,600 | | | | | Sun Hung Kai Properties Ltd. | | | 131,827,682 | |
| | 4,464,675 | | | | | Wharf Holdings Ltd. | | | 24,146,351 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 324,048,789 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 11.5% |
| | 175,000 | | | | | Daito Trust Construction Co., Ltd. | | | 9,328,648 | |
| | 1,701,100 | | | | | Daiwa House Industry Co., Ltd. | | | 18,303,352 | |
| | 5,292,300 | | | | | Mitsubishi Estate Co., Ltd. | | | 95,406,871 | |
| | 4,824,400 | | | | | Mitsui Fudosan Co., Ltd. | | | 89,344,370 | |
| | 2,550,300 | | | | | Sumitomo Realty & Development Co., Ltd. | | | 52,329,427 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 264,712,668 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.9% |
| | 10,195,300 | | | @,L | | Norwegian Property ASA | | | 20,174,418 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,174,418 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.9% |
| | 5,096,900 | | | | | CapitaLand Ltd. | | | 13,767,871 | |
| | 833,000 | | | | | City Developments Ltd. | | | 6,399,565 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,167,436 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 0.9% |
| | 1,022,320 | | | | | Castellum AB | | | 9,254,942 | |
| | 718,320 | | | | | Fabege AB | | | 4,460,333 | |
| | 1,044,970 | | | | | Hufvudstaden AB | | | 7,971,879 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 21,687,154 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 0.5% |
| | 182,190 | | | @ | | Swiss Prime Site AG | | | 10,773,523 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,773,523 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 1.5% |
| | 2,447,030 | | | I | | Atrium European Real Estate Ltd. | | | 14,530,747 | |
| | 2,751,710 | | | | | Grainger PLC | | | 5,839,851 | |
| | 924,877 | | | | | Helical Bar PLC | | | 4,736,771 | |
| | 4,810,468 | | | I | | Safestore Holdings Ltd. | | | 9,946,923 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 35,054,292 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 2.0% |
| | 365,800 | | | @,L | | Hyatt Hotels Corp. | | | 15,059,986 | |
| | 572,800 | | | | | Starwood Hotels & Resorts Worldwide, Inc. | | | 31,223,328 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 46,283,314 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $688,737,675) | | | 774,538,601 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 61.7% |
| | | | | | | |
| | | | | | | Australia: 8.4% |
| | 4,621,500 | | | | | CFS Retail Property Trust | | | 8,149,176 | |
| | 36,914,445 | | | | | Dexus Property Group | | | 27,378,848 | |
| | 36,207,100 | | | | | GPT Group | | | 19,346,692 | |
| | 62,913,486 | | | | | Macquarie Goodman Group | | | 40,899,092 | |
| | 11,203,386 | | | | | Mirvac Group | | | 14,376,561 | |
| | 5,962,320 | | | | | Stockland | | | 21,734,367 | |
| | 5,151,524 | | | | | Westfield Group | | | 60,846,766 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 192,731,502 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 1.7% |
| | 436,300 | | | | | Calloway Real Estate Investment Trust | | | 9,213,069 | |
| | 166,800 | | | | | Canadian Real Estate Investment Trust | | | 4,704,489 | |
| | 407,300 | | | | | Primaris Retail Real Estate | | | 6,728,189 | |
| | 983,400 | | | | | RioCan Real Estate Investment Trust | | | 18,781,217 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 39,426,964 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 3.9% |
| | 885,272 | | | L | | Klepierre | | | 30,506,843 | |
| | 337,912 | | | | | Mercialys | | | 11,342,051 | |
| | 55,220 | | | | | Societe Immobiliere de Location pour l’Industrie et le Commerce | | | 6,505,641 | |
| | 214,466 | | | | | Unibail | | | 40,534,199 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 88,888,734 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.6% |
| | 5,367,300 | | | | | Link Real Estate Investment Trust | | | 13,167,397 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,167,397 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 3.3% |
| | 1,449 | | | | | Frontier Real Estate Investment Corp. | | | 11,151,001 | |
| | 1,173 | | | | | Japan Logistics Fund, Inc. | | | 9,381,791 | |
| | 1,755 | | | | | Japan Real Estate Investment Corp. | | | 14,636,163 | |
| | 5,384 | | | | | Japan Retail Fund Investment Corp. | | | 7,246,295 | |
| | 2,926 | | | | | Kenedix Realty Investment Corp. | | | 9,605,141 | |
| | 860 | | | | | Nippon Accommodations Fund, Inc. | | | 4,492,977 | |
| | 2,081 | | | | | Orix JREIT, Inc. | | | 10,182,104 | |
| | 1,565 | | | | | United Urban Investment Corp. | | | 10,181,328 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 76,876,800 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.7% |
| | 259,954 | | | | | Corio NV | | | 15,039,030 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,039,030 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 1.9% |
| | 13,723,766 | | | | | Ascendas Real Estate Investment Trust | | | 19,160,292 | |
| | 7,768,000 | | | L | | CapitaCommercial Trust | | | 6,793,256 | |
| | 7,377,301 | | | | | CapitaMall Trust | | | 10,405,925 | |
| | 3,797,000 | | | | | Frasers Centrepoint Trust | | | 3,700,904 | |
| | 3,048,700 | | | | | Suntec Real Estate Investment Trust | | | 3,068,234 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 43,128,611 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 5.2% |
| | 3,613,974 | | | | | British Land Co. PLC | | | 25,664,081 | |
| | 916,410 | | | | | Derwent Valley Holdings PLC | | | 20,195,027 | |
| | 2,273,080 | | | | | Great Portland Estates PLC | | | 10,881,204 | |
| | 1,440,826 | | | | | Hammerson PLC | | | 8,410,763 | |
See Accompanying Notes to Financial Statements
96
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 4,708,834 | | | | | Land Securities Group PLC | | $ | 47,090,725 | |
| | 1,818,657 | | | | | Segro PLC | | | 8,584,619 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 120,826,419 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 36.0% |
| | 356,361 | | | | | Acadia Realty Trust | | | 6,799,368 | |
| | 248,900 | | | L | | Alexandria Real Estate Equities, Inc. | | | 17,624,609 | |
| | 783,400 | | | | | AMB Property Corp. | | | 21,825,524 | |
| | 790,100 | | | L | | Apartment Investment & Management Co. | | | 17,706,141 | |
| | 371,471 | | | | | AvalonBay Communities, Inc. | | | 38,647,843 | |
| | 164,000 | | | | | Boston Properties, Inc. | | | 12,933,040 | |
| | 535,500 | | | L | | BRE Properties, Inc. | | | 22,362,480 | |
| | 343,500 | | | L | | Camden Property Trust | | | 16,635,705 | |
| | 1,008,000 | | | L | | Developers Diversified Realty Corp. | | | 12,388,320 | |
| | 272,610 | | | L | | Digital Realty Trust, Inc. | | | 16,002,207 | |
| | 1,221,300 | | | | | Duke Realty Corp. | | | 16,524,189 | |
| | 1,362,900 | | | | | Equity Residential | | | 61,698,483 | |
| | 372,200 | | | L | | Extra Space Storage, Inc. | | | 5,590,444 | |
| | 291,100 | | | | | Federal Realty Investment Trust | | | 22,528,229 | |
| | 683,400 | | | | | Highwoods Properties, Inc. | | | 21,848,298 | |
| | 3,160,854 | | | | | Host Hotels & Resorts, Inc. | | | 51,395,486 | |
| | 973,275 | | | L | | Liberty Property Trust | | | 32,906,428 | |
| | 1,480,122 | | | | | Macerich Co. | | | 66,176,254 | |
| | 850,000 | | | L | | Nationwide Health Properties, Inc. | | | 29,767,000 | |
| | 118,400 | | | @ | | Pebblebrook Hotel Trust | | | 2,332,480 | |
| | 3,241,700 | | | L | | Prologis | | | 42,693,189 | |
| | 162,354 | | | L | | Public Storage, Inc. | | | 15,733,726 | |
| | 513,700 | | | L | | Regency Centers Corp. | | | 21,087,385 | |
| | 741,569 | | | | | Simon Property Group, Inc. | | | 66,014,472 | |
| | 366,800 | | | | | SL Green Realty Corp. | | | 22,803,956 | |
| | 407,900 | | | | | Tanger Factory Outlet Centers, Inc. | | | 16,968,640 | |
| | 416,700 | | | L | | Taubman Centers, Inc. | | | 18,072,279 | |
| | 1,428,709 | | | L | | UDR, Inc. | | | 29,017,080 | |
| | 683,100 | | | | | Ventas, Inc. | | | 32,262,813 | |
| | 855,320 | | | L | | Vornado Realty Trust | | | 71,308,028 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 829,654,096 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $1,115,752,004) | | | 1,419,739,553 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 1.0% |
| | | | | | | |
| | | | | | | Australia: 0.9% |
| | 35,981,900 | | | ** | | ING Office Fund | | | 20,194,218 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,194,218 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.1% |
| | 269,354 | | | @ | | Prologis European Properties | | | 1,702,510 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,702,510 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $21,153,076) | | | 21,896,728 | |
| | | | | | | | | | | |
| |
WARRANTS: 0.0% |
| | | | | | | |
| | | | | | | Hong Kong: 0.0% |
| | 642,560 | | | | | Henderson Land Development Co., Ltd. | | | 222,572 | |
| | | | | | | | | | | |
| | | | | | | Total Warrants
(Cost $—) | | | 222,572 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $1,825,609,767) | | | 2,216,397,454 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 4.7% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 3.2% |
| | 73,754,366 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 73,754,366 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $73,754,366) | | | 73,754,366 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 1.5% |
| | 32,633,752 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | | 32,633,752 | |
| | 2,745,317 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 2,196,253 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $35,379,069) | | | 34,830,005 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $109,133,435) | | | 108,584,371 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $1,934,776,190)* | | | 101.0 | % | | $ | 2,324,981,825 | |
| | | | | Other Assets and
Liabilities - Net | | | (1.0 | ) | | | (22,921,215 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 2,302,060,610 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| ** | | Investment in affiliate |
| | | |
| * | | Cost for federal income tax purposes is $2,178,897,034. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 402,588,611 | |
| Gross Unrealized Depreciation | | | (256,503,820 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 146,084,791 | |
| | | | | |
See Accompanying Notes to Financial Statements
97
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Apartments | | | 8.3 | % |
| Closed-End Funds | | | 0.1 | |
| Diversified | | | 22.7 | |
| Health Care | | | 2.7 | |
| Holding Companies — Diversified | | | 1.0 | |
| Home Builders | | | 0.8 | |
| Hotels | | | 2.3 | |
| Lodging | | | 2.3 | |
| Office Property | | | 5.1 | |
| Open-End Funds | | | 0.9 | |
| Real Estate | | | 29.1 | |
| Regional Malls | | | 6.5 | |
| Shopping Centers | | | 10.0 | |
| Storage | | | 0.9 | |
| Storage/Warehousing | | | 0.4 | |
| Warehouse/Industrial | | | 3.2 | |
| Short-Term Investments | | | 4.7 | |
| Other Assets and Liabilities — Net | | | (1.0 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 15,337,407 | | | $ | — | | | $ | 15,337,407 | |
| Canada | | | 16,299,600 | | | | — | | | | — | | | | 16,299,600 | |
| Hong Kong | | | — | | | | 324,048,789 | | | | — | | | | 324,048,789 | |
| Japan | | | 52,329,427 | | | | 212,383,241 | | | | — | | | | 264,712,668 | |
| Norway | | | — | | | | 20,174,418 | | | | — | | | | 20,174,418 | |
| Singapore | | | — | | | | 20,167,436 | | | | — | | | | 20,167,436 | |
| Sweden | | | — | | | | 21,687,154 | | | | — | | | | 21,687,154 | |
| Switzerland | | | — | | | | 10,773,523 | | | | — | | | | 10,773,523 | |
| United Kingdom | | | — | | | | 35,054,292 | | | | — | | | | 35,054,292 | |
| United States | | | 46,283,314 | | | | — | | | | — | | | | 46,283,314 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 114,912,341 | | | | 659,626,260 | | | | — | | | | 774,538,601 | |
| | | | | | | | | | | | | | | | | |
| Real Estate Investment Trusts | | | 869,081,060 | | | | 550,658,493 | | | | — | | | | 1,419,739,553 | |
| Mutual Funds | | | — | | | | 21,896,728 | | | | — | | | | 21,896,728 | |
| Warrants | | | — | | | | 222,572 | | | | — | | | | 222,572 | |
| Short-Term Investments | | | 106,388,118 | | | | — | | | | 2,196,253 | | | | 108,584,371 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 1,090,381,519 | | | $ | 1,232,404,053 | | | $ | 2,196,253 | | | $ | 2,324,981,825 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,196,253 | | | $ | — | | | $ | 2,196,253 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,196,253 | | | $ | — | | | $ | 2,196,253 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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.
| |
| ˆ | 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 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
98
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 90.8% |
| | | | | | | |
| | | | | | | Australia: 1.4% |
| | 1,333,568 | | | @,L | | Minara Resources Ltd. | | $ | 1,066,447 | |
| | 643,500 | | | @ | | Mineral Deposits Ltd. | | | 564,772 | |
| | 95,000 | | | | | Newcrest Mining Ltd. | | | 2,867,641 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,498,860 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 2.7% |
| | 345,000 | | | | | Centrais Eletricas Brasileiras SA ADR — Class B | | | 6,068,550 | |
| | 56,000 | | | L | | Cia de Saneamento Basico do Estado de Sao Paulo ADR | | | 2,203,600 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,272,150 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Cambodia: 0.4% |
| | 10,110,000 | | | | | NagaCorp Ltd. | | | 1,305,249 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,305,249 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 12.6% |
| | 318,000 | | | | | Barrick Gold Corp. | | | 13,848,900 | |
| | 357,000 | | | | | Cameco Corp. | | | 8,785,770 | |
| | 24,900 | | | @ | | Dundee Precious Metals, Inc. | | | 99,276 | |
| | 1,527,375 | | | @ | | Eastern Platinum Ltd. | | | 2,165,210 | |
| | 1,614,400 | | | @,L | | Gabriel Resources Ltd. | | | 6,659,119 | |
| | 90,100 | | | | | Suncor Energy, Inc. | | | 3,078,717 | |
| | 528,100 | | | @ | | Uranium Participation Corp. | | | 3,108,917 | |
| | 113,926 | | | @,I | | Westjet Airlines Ltd. | | | 1,534,266 | |
| | 19,578 | | | @ | | Westjet Airlines Ltd.-VV | | | 260,192 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 39,540,367 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.6% |
| | 16,900 | | | L | | PetroChina Co., Ltd. ADR | | | 1,945,697 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,945,697 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.9% |
| | 197,673 | | | | | UPM-Kymmene OYJ | | | 2,836,781 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,836,781 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 4.1% |
| | 4,650 | | | L | | Areva SA | | | 2,299,882 | |
| | 38,925 | | | | | Electricite de France | | | 2,086,142 | |
| | 225,000 | | | L | | Thales S.A. | | | 8,379,293 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,765,317 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.8% |
| | 218,200 | | | | | Deutsche Telekom AG ADR | | | 2,616,218 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,616,218 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.3% |
| | 74,302 | | | L | | China Unicom Ltd. ADR | | | 923,574 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 923,574 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 1.3% |
| | 4,128,000 | | | | | Medco Energi Internasional Tbk PT | | | 1,328,898 | |
| | 82,050 | | | | | Telekomunikasi Indonesia Tbk PT ADR | | | 2,848,776 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,177,674 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 2.9% |
| | 448,000 | | | L | | ERG S.p.A. | | | 6,160,568 | |
| | 2,505,000 | | | @ | | Telecom Italia S.p.A. RNC | | | 2,826,928 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,987,496 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 20.8% |
| | 225,000 | | | | | 77 Bank Ltd. | | | 1,278,562 | |
| | 590,000 | | | | | Daiwa Securities Group, Inc. | | | 3,051,662 | |
| | 975 | | | | | Fields Corp. | | | 1,151,377 | |
| | 77,200 | | | | | Futaba Corp. | | | 1,569,128 | |
| | 13,340 | | | | | Hakuhodo DY Holdings, Inc. | | | 757,814 | |
| | 402,320 | | | @ | | JX Holdings, Inc. | | | 2,244,272 | |
| | 224,000 | | | | | Kao Corp. | | | 5,461,545 | |
| | 157,000 | | | | | Kirin Brewery Co., Ltd. | | | 2,249,301 | |
| | 123,000 | | | | | Mitsui & Co., Ltd. | | | 1,848,579 | |
| | 104,600 | | | | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 3,006,472 | |
| | 305,000 | | | | | Nippon Telegraph & Telephone Corp. | | | 12,414,590 | |
| | 29,575 | | | | | Nippon Telegraph & Telephone Corp. ADR | | | 600,077 | |
| | 37,400 | | | | | Nissin Food Products Co., Ltd. | | | 1,258,064 | |
| | 255,000 | | | | | Obayashi Corp. | | | 1,139,382 | |
| | 49,200 | | | | | Sankyo Co., Ltd. | | | 2,271,050 | |
| | 35,200 | | | | | Sanshin Electronics Co., Ltd. | | | 329,701 | |
| | 643,000 | | | | | Sekisui House Ltd. | | | 6,129,123 | |
| | 121,700 | | | | | Seven & I Holdings Co., Ltd. | | | 3,112,002 | |
| | 1,686,000 | | | | | Sumitomo Osaka Cement Co., Ltd. | | | 3,238,057 | |
| | 780,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 4,717,087 | |
| | 72,700 | | | | | Takeda Pharmaceutical Co., Ltd. | | | 3,121,399 | |
| | 322,000 | | | | | Toppan Printing Co., Ltd. | | | 2,936,431 | |
| | 705 | | | | | TV Asahi Corp. | | | 1,150,860 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 65,036,535 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 1.0% |
| | 53,500 | | | | | Royal Dutch Shell PLC ADR — Class B | | | 3,246,380 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,246,380 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 2.0% |
| | 3,328,030 | | | @,L | | Marine Harvest | | | 3,088,040 | |
| | 133,000 | | | @,L | | Statoil ASA ADR | | | 3,214,610 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,302,650 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Papua New Guinea: 1.4% |
| | 1,193,393 | | | | | Lihir Gold Ltd. | | | 4,217,260 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,217,260 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 1.0% |
| | 130,150 | | | | | OAO Gazprom ADR | | | 3,022,083 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,022,083 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 3.1% |
| | 77,600 | | | | | Anglogold Ashanti Ltd. ADR | | | 3,248,336 | |
| | 473,000 | | | | | Gold Fields Ltd. | | | 6,318,212 | |
| | 600,000 | | | @ | | Simmer & Jack Mines Ltd. | | | 108,131 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,674,679 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 2.3% |
| | 286,000 | | | | | Korea Electric Power Corp. ADR | | | 4,301,440 | |
| | 51,810 | | | | | KT Corp. ADR | | | 1,170,906 | |
| | 87,400 | | | | | SK Telecom Co., Ltd. ADR | | | 1,617,774 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,090,120 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 1.2% |
| | 235,000 | | | @ | | UBS AG — Reg | | | 3,623,700 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,623,700 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.4% |
| | 306,800 | | | | | Bangkok Bank PCL | | | 1,124,049 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,124,049 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 0.7% |
| | 134,400 | | | | | Turkcell Iletisim Hizmet AS ADR | | | 2,173,248 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,173,248 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 2.7% |
| | 63,050 | | | | | AstraZeneca PLC ADR | | | 2,788,702 | |
| | 54,300 | | | | | BP PLC ADR | | | 2,831,745 | |
| | 188,500 | | | | | Stolt-Nielsen SA | | | 2,951,890 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,572,337 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
99
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | United States: 26.2% |
| | 155,600 | | | | | Aetna, Inc. | | $ | 4,597,980 | |
| | 114,000 | | | @ | | AGCO Corp. | | | 3,992,280 | |
| | 225,000 | | | | | Alcoa, Inc. | | | 3,024,000 | |
| | 121,000 | | | | | Ameren Corp. | | | 3,141,160 | |
| | 81,500 | | | | | ConocoPhillips | | | 4,823,985 | |
| | 195,800 | | | @ | | eBay, Inc. | | | 4,661,998 | |
| | 56,400 | | | @ | | Forest Laboratories, Inc. | | | 1,537,464 | |
| | 200,000 | | | | | Kroger Co. | | | 4,446,000 | |
| | 30,000 | | | | | Lockheed Martin Corp. | | | 2,546,700 | |
| | 48,800 | | | | | Microsoft Corp. | | | 1,490,352 | |
| | 253,600 | | | | | Newmont Mining Corp. | | | 14,221,888 | |
| | 102,000 | | | | | Peabody Energy Corp. | | | 4,765,440 | |
| | 375,000 | | | | | Pfizer, Inc. | | | 6,270,000 | |
| | 79,300 | | | @ | | Smithfield Foods, Inc. | | | 1,486,082 | |
| | 403,538 | | | | | Tesoro Corp. | | | 5,306,525 | |
| | 232,000 | | | | | Tyson Foods, Inc. | | | 4,544,880 | |
| | 61,300 | | | | | Union Pacific Corp. | | | 4,637,958 | |
| | 120,000 | | | | | Wal-Mart Stores, Inc. | | | 6,438,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 81,932,692 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $246,024,365) | | | 283,885,116 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 0.6% |
| | | | | | | |
| | | | | | | Brazil: 0.6% |
| | 770,000 | | | | | Tim Participacoes SA | | | 1,980,095 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $1,382,868) | | | 1,980,095 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $247,407,233) | | | 285,865,211 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 12.7% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 7.6% |
| | 23,908,734 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 23,908,734 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $23,908,734) | | | 23,908,734 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 5.1% |
| | 15,722,706 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | | 15,722,706 | |
| | 287,772 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 230,218 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $16,010,478) | | | 15,952,924 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $39,919,212) | | | 39,861,658 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $287,326,445)* | | | 104.1 | % | | $ | 325,726,869 | |
| | | | | Other Assets and
Liabilities - Net | | | (4.1 | ) | | | (12,858,679 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 312,868,190 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| | | |
| * | | Cost for federal income tax purposes is $291,796,997. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 41,992,477 | |
| Gross Unrealized Depreciation | | | (8,062,605 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 33,929,872 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.2 | % |
| Aerospace/Defense | | | 3.5 | |
| Airlines | | | 0.6 | |
| Banks | | | 3.4 | |
| Beverages | | | 0.7 | |
| Building Materials | | | 1.0 | |
| Coal | | | 1.5 | |
| Commercial Services | | | 0.9 | |
| Cosmetics/Personal Care | | | 1.7 | |
| Distribution/Wholesale | | | 0.6 | |
| Diversified Financial Services | | | 1.0 | |
| Electric | | | 5.0 | |
| Electronics | | | 0.6 | |
| Energy — Alternate Sources | | | 0.7 | |
| Engineering & Construction | | | 0.4 | |
| Entertainment | | | 0.7 | |
| Equity Fund | | | 1.0 | |
| Food | | | 4.7 | |
| Forest Products & Paper | | | 0.9 | |
| Healthcare — Services | | | 1.5 | |
| Home Builders | | | 2.0 | |
| Insurance | | | 1.0 | |
| Internet | | | 1.5 | |
| Leisure Time | | | 0.4 | |
| Lodging | | | 0.4 | |
| Machinery — Diversified | | | 1.3 | |
| Media | | | 0.4 | |
| Mining | | | 21.5 | |
| Oil & Gas | | | 11.9 | |
| Pharmaceuticals | | | 4.4 | |
| Retail | | | 3.1 | |
| Software | | | 0.5 | |
| Telecommunications | | | 9.3 | |
| Transportation | | | 2.4 | |
| Water | | | 0.7 | |
| Short-Term Investments | | | 12.7 | |
| Other Assets and Liabilities — Net | | | (4.1 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
100
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of April 30, 2010 (Unaudited) (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 4,498,860 | | | $ | — | | | $ | 4,498,860 | |
| Brazil | | | 8,272,150 | | | | — | | | | — | | | | 8,272,150 | |
| Cambodia | | | — | | | | 1,305,249 | | | | — | | | | 1,305,249 | |
| Canada | | | 39,540,367 | | | | — | | | | — | | | | 39,540,367 | |
| China | | | 1,945,697 | | | | — | | | | — | | | | 1,945,697 | |
| Finland | | | — | | | | 2,836,781 | | | | — | | | | 2,836,781 | |
| France | | | — | | | | 12,765,317 | | | | — | | | | 12,765,317 | |
| Germany | | | 2,616,218 | | | | — | | | | — | | | | 2,616,218 | |
| Hong Kong | | | 923,574 | | | | — | | | | — | | | | 923,574 | |
| Indonesia | | | 2,848,776 | | | | 1,328,898 | | | | — | | | | 4,177,674 | |
| Italy | | | — | | | | 8,987,496 | | | | — | | | | 8,987,496 | |
| Japan | | | 2,844,349 | | | | 62,192,186 | | | | — | | | | 65,036,535 | |
| Netherlands | | | 3,246,380 | | | | — | | | | — | | | | 3,246,380 | |
| Norway | | | 3,214,610 | | | | 3,088,040 | | | | — | | | | 6,302,650 | |
| Papua New Guinea | | | — | | | | 4,217,260 | | | | — | | | | 4,217,260 | |
| Russia | | | 3,022,083 | | | | — | | | | — | | | | 3,022,083 | |
| South Africa | | | 3,248,336 | | | | 6,426,343 | | | | — | | | | 9,674,679 | |
| South Korea | | | 7,090,120 | | | | — | | | | — | | | | 7,090,120 | |
| Switzerland | | | 3,623,700 | | | | — | | | | — | | | | 3,623,700 | |
| Thailand | | | — | | | | 1,124,049 | | | | — | | | | 1,124,049 | |
| Turkey | | | 2,173,248 | | | | — | | | | — | | | | 2,173,248 | |
| United Kingdom | | | 5,620,447 | | | | 2,951,890 | | | | — | | | | 8,572,337 | |
| United States | | | 81,932,692 | | | | — | | | | — | | | | 81,932,692 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 172,162,747 | | | | 111,722,369 | | | | — | | | | 283,885,116 | |
| | | | | | | | | | | | | | | | | |
| Preferred Stock | | | 1,980,095 | | | | — | | | | — | | | | 1,980,095 | |
| Short-Term Investments | | | 39,631,440 | | | | — | | | | 230,218 | | | | 39,861,658 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 213,774,282 | | | $ | 111,722,369 | | | $ | 230,218 | | | $ | 325,726,869 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 230,218 | | | $ | — | | | $ | 230,218 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 230,218 | | | $ | — | | | $ | 230,218 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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.
| |
| ˆ | 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 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
101
PORTFOLIO OF INVESTMENTS
ING Asia-Pacific Real Estate Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 57.9% |
| | | | | | | |
| | | | | | | Australia: 1.4% |
| | 9,195 | | | | | Lend Lease Corp. Ltd. | | $ | 72,373 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 72,373 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 26.5% |
| | 24,602 | | | | | Cheung Kong Holdings Ltd. | | | 303,388 | |
| | 14,400 | | | | | Great Eagle Holding Co. | | | 40,297 | |
| | 55,000 | | | | | Hang Lung Properties Ltd. | | | 197,850 | |
| | 29,600 | | | | | Hongkong Land Holdings Ltd. | | | 156,583 | |
| | 48,000 | | | | | Sino Land Co. | | | 86,140 | |
| | 34,100 | | | | | Sun Hung Kai Properties Ltd. | | | 472,764 | |
| | 18,600 | | | | | Wharf Holdings Ltd. | | | 100,595 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,357,617 | |
| | | | | | | | | | | | | �� | | |
| | | | | | | |
| | | | | | | Japan: 25.0% |
| | 1,200 | | | | | Daito Trust Construction Co., Ltd. | | | 63,968 | |
| | 27,000 | | | | | Mitsubishi Estate Co., Ltd. | | | 486,742 | |
| | 21,900 | | | | | Mitsui Fudosan Co., Ltd. | | | 405,572 | |
| | 13,000 | | | | | Sumitomo Realty & Development Co., Ltd. | | | 266,746 | |
| | 12,000 | | | | | Tokyo Tatemono Co., Ltd. | | | 55,338 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,278,366 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 5.0% |
| | 34,150 | | | | | CapitaLand Ltd. | | | 92,247 | |
| | 8,000 | | | | | City Developments Ltd. | | | 61,460 | |
| | 37,000 | | | | | Keppel Land Ltd. | | | 99,722 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 253,429 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $2,758,328) | | | 2,961,785 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 35.6% |
| | | | | | | |
| | | | | | | Australia: 20.4% |
| | 15,200 | | | | | CFS Retail Property Trust | | | 26,802 | |
| | 125,300 | | | | | Dexus Property Group | | | 92,933 | |
| | 145,494 | | | | | GPT Group | | | 77,742 | |
| | 251,373 | | | | | Macquarie Goodman Group | | | 163,414 | |
| | 35,924 | | | | | Mirvac Group | | | 46,099 | |
| | 30,784 | | | | | Stockland | | | 112,217 | |
| | 44,261 | | | | | Westfield Group | | | 522,785 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,041,992 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 8.5% |
| | 2 | | | | | Frontier Real Estate Investment Corp. | | | 15,391 | |
| | 9 | | | | | Japan Logistics Fund, Inc. | | | 71,983 | |
| | 18 | | | | | Japan Real Estate Investment Corp. | | | 150,114 | |
| | 42 | | | | | Japan Retail Fund Investment Corp. | | | 56,528 | |
| | 8 | | | | | Kenedix Realty Investment Corp. | | | 26,261 | |
| | 4 | | | | | Nippon Accommodations Fund, Inc. | | | 20,898 | |
| | 2 | | | | | Nippon Building Fund, Inc. | | | 16,776 | |
| | 12 | | | | | United Urban Investment Corp. | | | 78,068 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 436,019 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 6.7% |
| | 44,133 | | | | | Ascendas Real Estate Investment Trust | | | 61,616 | |
| | 101,000 | | | | | CapitaMall Trust | | | 142,464 | |
| | 101,000 | | | | | Fortune Real Estate Investment Trust | | | 46,761 | |
| | 27,000 | | | | | Frasers Centrepoint Trust | | | 26,317 | |
| | 67,600 | | | | | Suntec Real Estate Investment Trust | | | 68,033 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 345,191 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $1,528,995) | | | 1,823,202 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 3.3% |
| | | | | | | |
| | | | | | | Australia: 3.3% |
| | 186,700 | | | ** | | ING Industrial Fund | | | 73,870 | |
| | 170,200 | | | ** | | ING Office Fund | | | 95,522 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $166,523) | | | 169,392 | |
| | | | | | | | | | | |
| |
WARRANTS: 0.0% |
| | | | | | | |
| | | | | | | Hong Kong: 0.0% |
| | 3,260 | | | | | Henderson Land Development Co., Ltd. | | | 1,129 | |
| | | | | | | | | | | |
| | | | | | | Total Warrants
(Cost $—) | | | 1,129 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $4,453,846) | | | 4,955,508 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 1.3% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 1.3% |
| | 67,766 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 67,766 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $67,766) | | | 67,766 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $4,521,612)* | | | 98.1 | % | | $ | 5,023,274 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.9 | | | | 97,255 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 5,120,529 | |
| | | | | | | | | | | | | |
| | | |
| ** | | Investment in affiliate |
| | | |
| * | | Cost for federal income tax purposes is $5,254,134. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 533,179 | |
| Gross Unrealized Depreciation | | | (764,039 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (230,860 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Apartments | | | 0.4 | % |
| Diversified | | | 14.2 | |
| Holding Companies — Diversified | | | 2.0 | |
| Lodging | | | 1.2 | |
| Office Property | | | 3.3 | |
| Open-End Funds | | | 3.3 | |
| Real Estate | | | 54.7 | |
| Shopping Centers | | | 16.3 | |
| Warehouse/Industrial | | | 1.4 | |
| Short-Term Investments | | | 1.3 | |
| Other Assets and Liabilities — Net | | | 1.9 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
102
PORTFOLIO OF INVESTMENTS
ING Asia-Pacific Real Estate Fund
as of April 30, 2010 (Unaudited) (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 72,373 | | | $ | — | | | $ | 72,373 | |
| Hong Kong | | | — | | | | 1,357,617 | | | | — | | | | 1,357,617 | |
| Japan | | | 266,746 | | | | 1,011,620 | | | | — | | | | 1,278,366 | |
| Singapore | | | — | | | | 253,429 | | | | — | | | | 253,429 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 266,746 | | | | 2,695,039 | | | | — | | | | 2,961,785 | |
| | | | | | | | | | | | | | | | | |
| Real Estate Investment Trusts | | | — | | | | 1,823,202 | | | | — | | | | 1,823,202 | |
| Mutual Funds | | | — | | | | 169,392 | | | | — | | | | 169,392 | |
| Warrants | | | — | | | | 1,129 | | | | — | | | | 1,129 | |
| Short-Term Investments | | | 67,766 | | | | — | | | | — | | | | 67,766 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 334,512 | | | $ | 4,688,762 | | | $ | — | | | $ | 5,023,274 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| # | 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
103
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 94.0% |
| | | | | | | |
| | | | | | | Bermuda: 1.1% |
| | 21,718 | | | | | Credicorp Ltd. | | $ | 1,886,425 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,886,425 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 14.9% |
| | 148,297 | | | | | Banco Itau Holding Financeira S.A. ADR | | | 3,215,079 | |
| | 83,830 | | | | | Banco Santander Brasil S.A. | | | 969,838 | |
| | 103,985 | | | @ | | BR Malls Participacoes S.A. | | | 1,318,469 | |
| | 16,301 | | | | | Cia de Bebidas das Americas ADR | | | 1,594,238 | |
| | 111,676 | | | | | Cia Siderurgica Nacional S.A. | | | 2,088,002 | |
| | 132,329 | | | | | CIA Vale do Rio Doce | | | 4,029,440 | |
| | 38,932 | | | @,L | | Fibria Celulose SA ADR | | | 772,800 | |
| | 98,928 | | | | | Localiza Rent a Car S.A. | | | 1,096,133 | |
| | 126,067 | | | | | Mrv Engenharia | | | 882,632 | |
| | 236,579 | | | @ | | OGX Petroleo e Gas Participacoes S.A. | | | 2,365,450 | |
| | 66,724 | | | | | Perdigao S.A. | | | 872,124 | |
| | 159,933 | | | | | Petroleo Brasileiro S.A. | | | 3,379,456 | |
| | 59,969 | | | | | Petroleo Brasileiro SA ADR | | | 2,275,224 | |
| | 21,465 | | | | | Vale S.A. ADR | | | 657,473 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 25,516,358 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 1.8% |
| | 136,086 | | | @ | | Pacific Rubiales Energy Corp. | | | 3,067,897 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,067,897 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 12.5% |
| | 1,253 | | | @ | | Baidu.com ADR | | | 863,693 | |
| | 1,176,000 | | | | | China Citic Bank | | | 773,069 | |
| | 649,500 | | | | | China Life Insurance Co., Ltd. | | | 2,990,620 | |
| | 628,500 | | | | | China Shenhua Energy Co., Ltd. | | | 2,696,969 | |
| | 1,850,000 | | | | | China Telecom Corp. Ltd. | | | 848,762 | |
| | 524,000 | | | | | China Yurun Food Group Ltd. | | | 1,588,971 | |
| | 49,200 | | | @ | | Ctrip.com International Ltd. ADR | | | 1,796,784 | |
| | 177,600 | | | | | Dongfang Electrical Machinery Co., Ltd. | | | 1,151,567 | |
| | 5,456,000 | | | | | Industrial and Commercial Bank of China Ltd. | | | 3,976,592 | |
| | 997,000 | | | | | Parkson Retail Group Ltd. | | | 1,628,376 | |
| | 2,139,000 | | | | | Want Want China Holdings Ltd. | | | 1,605,850 | |
| | 549,000 | | | | | Yanzhou Coal Mining Co., Ltd. | | | 1,527,130 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 21,448,383 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Czech Republic: 0.5% |
| | 17,000 | | | | | CEZ A/S | | | 815,159 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 815,159 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Egypt: 1.5% |
| | 85,000 | | | | | Commercial International Bank | | | 1,138,640 | |
| | 28,200 | | | | | Orascom Construction Industries | | | 1,371,658 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,510,298 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 5.7% |
| | 102,000 | | | | | Beijing Enterprises Holdings Ltd. | | | 657,149 | |
| | 1,463,000 | | | | | C C Land Holdings Ltd. | | | 540,802 | |
| | 1,082,000 | | | | | Chaoda Modern Agriculture | | | 1,237,059 | |
| | 1,604,000 | | | | | China Gas Holdings Ltd. | | | 909,842 | |
| | 257,500 | | | | | China Mobile Ltd. | | | 2,520,679 | |
| | 589,840 | | | L | | China Overseas Land & Investment Ltd. | | | 1,145,322 | |
| | 1,582,000 | | | | | CNOOC Ltd. | | | 2,782,693 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,793,546 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hungary: 1.6% |
| | 77,232 | | | @ | | OTP Bank Nyrt | | | 2,714,818 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,714,818 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 4.9% |
| | 119,790 | | | | | Bharti Airtel Ltd. | | | 799,909 | |
| | 37,843 | | | | | Housing Development Finance Corp. | | | 2,381,996 | |
| | 49,611 | | | | | ICICI Bank Ltd. | | | 1,052,272 | |
| | 16,700 | | | | | Infosys Technologies Ltd. | | | 1,019,307 | |
| | 42,570 | | | | | Larsen & Toubro Ltd. | | | 1,537,360 | |
| | 72,664 | | | | | Reliance Industries Ltd. | | | 1,680,342 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,471,186 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 3.1% |
| | 2,507,500 | | | | | Bank Mandiri | | | 1,588,050 | |
| | 2,549,000 | | | | | Perusahaan Gas Negara PT | | | 1,144,787 | |
| | 257,000 | | | | | PT Astra International Tbk | | | 1,328,064 | |
| | 1,438,000 | | | | | Telekomunikasi Indonesia Tbk PT | | | 1,241,421 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,302,322 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 1.1% |
| | 32,652 | | | | | Teva Pharmaceutical Industries Ltd. ADR | | | 1,917,652 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,917,652 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 0.7% |
| | 28,000 | | | L | | Tenaris SA ADR | | | 1,137,080 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,137,080 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Malaysia: 0.6% |
| | 506,100 | | | | | Genting Bhd | | | 1,094,107 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,094,107 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mauritius: 0.6% |
| | 2,399,600 | | | | | Golden Agri-Resources Ltd. | | | 1,013,648 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,013,648 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 4.6% |
| | 59,419 | | | | | America Movil SA de CV — Series L ADR | | | 3,058,890 | |
| | 77,405 | | | @ | | Cemex SA de CV ADR | | | 919,571 | |
| | 13,251 | | | | | Fomento Economico Mexicano SA de CV ADR | | | 627,170 | |
| | 338,000 | | | @ | | Grupo Financiero Banorte SA de CV | | | 1,358,891 | |
| | 328,000 | | | @ | | Grupo Mexico SA de CV | | | 865,538 | |
| | 460,794 | | | @ | | Wal-Mart de Mexico SA de CV | | | 1,077,859 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,907,919 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.6% |
| | 26,800 | | | @ | | X5 Retail Group N.V. GDR | | | 951,952 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 951,952 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Poland: 1.8% |
| | 52,700 | | | @ | | Bank Pekao S.A. | | | 3,002,990 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,002,990 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 7.9% |
| | 46,574 | | | | | Mechel OAO ADR | | | 1,196,952 | |
| | 78,500 | | | @ | | MMC Norilsk Nickel ADR | | | 1,507,200 | |
| | 27,280 | | | | | Mobile Telesystems Finance SA ADR | | | 1,507,220 | |
| | 20,100 | | | | | Novatek OAO GDR | | | 1,505,937 | |
| | 106,101 | | | | | OAO Gazprom ADR | | | 2,463,665 | |
| | 282,270 | | | @ | | OAO Rosneft Oil Co. GDR | | | 2,258,981 | |
| | 1,169,690 | | | | | Sberbank of Russian Federation | | | 3,158,163 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,598,118 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 6.0% |
| | 44,500 | | | | | ABSA Group Ltd. | | | 838,136 | |
| | 25,000 | | | | | Anglogold Ashanti Ltd. ADR | | | 1,046,079 | |
| | 56,474 | | | | | Impala Platinum Holdings Ltd. | | | 1,592,289 | |
| | 127,000 | | | | | Imperial Holdings Ltd. | | | 1,682,530 | |
| | 33,500 | | | | | MTN Group Ltd. | | | 492,820 | |
| | 47,700 | | | | | Naspers Ltd. | | | 1,922,345 | |
See Accompanying Notes to Financial Statements
104
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | South Africa (continued) |
| | 132,000 | | | | | Shoprite Holdings Ltd. | | $ | 1,401,800 | |
| | 83,518 | | | | | Standard Bank Group Ltd. | | | 1,286,748 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,262,747 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 11.3% |
| | 20,914 | | | | | GS Engineering & Construction Corp. | | | 1,580,875 | |
| | 70,200 | | | @ | | Hynix Semiconductor, Inc. | | | 1,776,797 | |
| | 29,400 | | | | | KB Financial Group, Inc. | | | 1,432,477 | |
| | 100,940 | | | | | Kia Motors Corp. | | | 2,462,928 | |
| | 15,784 | | | | | LG Electronics, Inc. | | | 1,721,048 | |
| | 6,900 | | | | | Posco | | | 3,094,190 | |
| | 9,503 | | | | | Samsung Electronics Co., Ltd. | | | 7,225,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,293,815 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 7.8% |
| | 703,000 | | | | | Acer, Inc. | | | 1,917,056 | |
| | 1,371,000 | | | | | Far Eastern Textile Co., Ltd. | | | 1,487,577 | |
| | 720,300 | | | | | HON HAI Precision Industry Co., Ltd. | | | 3,381,469 | |
| | 28,910 | | | @ | | Hon Hai Precision Industry Co., Ltd. — GDR | | | 289,724 | |
| | 133,644 | | | | | MediaTek, Inc. | | | 2,262,866 | |
| | 290,000 | | | | | Taiwan Fertilizer Co., Ltd. | | | 922,802 | |
| | 1,606,610 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 3,144,297 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,405,791 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.7% |
| | 145,000 | | | | | PTT PCL | | | 1,137,216 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,137,216 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 1.4% |
| | 497,915 | | | | | Turkiye Garanti Bankasi A/S | | | 2,412,165 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,412,165 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 1.3% |
| | 45,355 | | | | | Antofagasta PLC | | | 687,667 | |
| | 38,204 | | | L | | Vedanta Resources PLC | | | 1,460,402 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,148,069 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $119,288,461) | | | 160,809,661 | |
| | | | | | | | | | | |
| |
EXCHANGE-TRADED FUNDS: 0.9% |
| | | | | | | |
| | | | | | | Hong Kong: 0.9% |
| | 939,400 | | | | | iShares FTSE/Xinhua A50 CHINA Index ETF | | | 1,534,179 | |
| | | | | | | | | | | |
| | | | | | | Total Exchange-Traded Funds
(Cost $1,680,584) | | | 1,534,179 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.1% |
| | | | | | | |
| | | | | | | Brazil: 1.1% |
| | 68,200 | | | | | CIA Energetica de Minas Gerais | | | 1,082,882 | |
| | 50,721 | | | | | Gerdau S.A. | | | 833,362 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $1,889,415) | | | 1,916,244 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $122,858,460) | | | 164,260,084 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 1.8% |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 1.8% |
| | 2,958,970 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | $ | 2,958,970 | |
| | 161,615 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 129,292 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $3,120,585) | | | 3,088,262 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $125,979,045)* | | | 97.8 | % | | $ | 167,348,346 | |
| | | | | Other Assets and
Liabilities - Net | | | 2.2 | | | | 3,803,099 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 171,151,445 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| | | |
| * | | Cost for federal income tax purposes is $132,277,025. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 42,790,834 | |
| Gross Unrealized Depreciation | | | (7,719,513 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 35,071,321 | |
| | | | | |
See Accompanying Notes to Financial Statements
105
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Agriculture | | | 1.3 | % |
| Apparel | | | 0.9 | |
| Auto Manufacturers | | | 1.4 | |
| Banks | | | 16.4 | |
| Beverages | | | 1.3 | |
| Building Materials | | | 0.5 | |
| Chemicals | | | 0.5 | |
| Coal | | | 2.5 | |
| Commercial Services | | | 0.6 | |
| Computers | | | 1.7 | |
| Diversified Financial Services | | | 3.0 | |
| Electric | | | 1.1 | |
| Electrical Components & Equipment | | | 1.7 | |
| Electronics | | | 2.2 | |
| Engineering & Construction | | | 2.6 | |
| Food | | | 3.8 | |
| Forest Products & Paper | | | 0.5 | |
| Gas | | | 1.1 | |
| Holding Companies — Diversified | | | 1.3 | |
| Home Builders | | | 0.5 | |
| Insurance | | | 1.8 | |
| Internet | | | 1.6 | |
| Iron/Steel | | | 4.2 | |
| Lodging | | | 0.6 | |
| Media | | | 1.1 | |
| Metal Fabricate/Hardware | | | 0.7 | |
| Mining | | | 6.9 | |
| Oil & Gas | | | 13.4 | |
| Pharmaceuticals | | | 1.1 | |
| Pipelines | | | 0.5 | |
| Real Estate | | | 1.4 | |
| Retail | | | 2.4 | |
| Semiconductors | | | 8.4 | |
| Telecommunications | | | 6.1 | |
| Other Long-Term Investments | | | 0.9 | |
| Short-Term Investments | | | 1.8 | |
| Other Assets and Liabilities — Net | | | 2.2 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Bermuda | | $ | 1,886,425 | | | $ | — | | | $ | — | | | $ | 1,886,425 | |
| Brazil | | | 22,301,279 | | | | 3,215,079 | | | | — | | | | 25,516,358 | |
| Canada | | | 3,067,897 | | | | — | | | | — | | | | 3,067,897 | |
| China | | | 5,651,097 | | | | 15,797,286 | | | | — | | | | 21,448,383 | |
| Czech Republic | | | — | | | | 815,159 | | | | — | | | | 815,159 | |
| Egypt | | | — | | | | 2,510,298 | | | | — | | | | 2,510,298 | |
| Hong Kong | | | — | | | | 9,793,546 | | | | — | | | | 9,793,546 | |
| Hungary | | | — | | | | 2,714,818 | | | | — | | | | 2,714,818 | |
| India | | | — | | | | 8,471,186 | | | | — | | | | 8,471,186 | |
| Indonesia | | | — | | | | 5,302,322 | | | | — | | | | 5,302,322 | |
| Israel | | | 1,917,652 | | | | — | | | | — | | | | 1,917,652 | |
| Italy | | | 1,137,080 | | | | — | | | | — | | | | 1,137,080 | |
| Malaysia | | | — | | | | 1,094,107 | | | | — | | | | 1,094,107 | |
| Mauritius | | | — | | | | 1,013,648 | | | | — | | | | 1,013,648 | |
| Mexico | | | 7,907,919 | | | | — | | | | — | | | | 7,907,919 | |
| Netherlands | | | — | | | | 951,952 | | | | — | | | | 951,952 | |
| Poland | | | — | | | | 3,002,990 | | | | — | | | | 3,002,990 | |
| Russia | | | 9,833,200 | | | | 3,764,918 | | | | — | | | | 13,598,118 | |
| South Africa | | | — | | | | 10,262,747 | | | | — | | | | 10,262,747 | |
| South Korea | | | — | | | | 19,293,815 | | | | — | | | | 19,293,815 | |
| Taiwan | | | — | | | | 13,405,791 | | | | — | | | | 13,405,791 | |
| Thailand | | | — | | | | 1,137,216 | | | | — | | | | 1,137,216 | |
| Turkey | | | — | | | | 2,412,165 | | | | — | | | | 2,412,165 | |
| United Kingdom | | | — | | | | 2,148,069 | | | | — | | | | 2,148,069 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 53,702,549 | | | | 107,107,112 | | | | — | | | | 160,809,661 | |
| | | | | | | | | | | | | | | | | |
| Exchange-Traded Funds | | | 1,534,179 | | | | — | | | | — | | | | 1,534,179 | |
| Preferred Stock | | | — | | | | 1,916,244 | | | | — | | | | 1,916,244 | |
| Short-Term Investments | | | 2,958,970 | | | | — | | | | 129,292 | | | | 3,088,262 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 58,195,698 | | | $ | 109,023,356 | | | $ | 129,292 | | | $ | 167,348,346 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Total
| | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 129,292 | | | $ | — | | | $ | 129,292 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 129,292 | | | $ | — | | | $ | 129,292 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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.
| |
| ˆ | 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 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
106
PORTFOLIO OF INVESTMENTS
ING European Real Estate Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 25.5% |
| | | | | | | |
| | | | | | | Austria: 2.5% |
| | 23,464 | | | @ | | Immofinanz Immobilien Anlagen AG | | $ | 100,048 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 100,048 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.7% |
| | 7,394 | | | | | Citycon OYJ | | | 26,417 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,417 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 3.4% |
| | 1,400 | | | | | Deutsche Euroshop AG | | | 43,901 | |
| | 2,750 | | | @ | | Deutsche Wohnen AG | | | 24,871 | |
| | 7,692 | | | | | DIC Asset AG | | | 66,320 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 135,092 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Guernsey: 0.5% |
| | 10,900 | | | | | London & Stamford Property Ltd. | | | 19,055 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,055 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 0.5% |
| | 21,610 | | | | | Beni Stabili S.p.A. | | | 18,821 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,821 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.6% |
| | 3,000 | | | | | GAGFAH SA | | | 23,720 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 23,720 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 3.3% |
| | 66,200 | | | @ | | Norwegian Property ASA | | | 130,996 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 130,996 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 0.2% |
| | 3,020 | | | @ | | Realia Business S.A. | | | 7,238 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,238 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 4.7% |
| | 6,327 | | | | | Castellum AB | | | 57,278 | |
| | 10,650 | | | | | Fabege AB | | | 66,130 | |
| | 7,830 | | | | | Hufvudstaden AB | | | 59,734 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 183,142 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 3.7% |
| | 2,467 | | | @ | | Swiss Prime Site AG | | | 145,882 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 145,882 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 5.4% |
| | 7,745 | | | | | Atrium European Real Estate Ltd. | | | 45,991 | |
| | 7,200 | | | | | Grainger PLC | | | 15,280 | |
| | 2,695 | | | | | Helical Bar PLC | | | 13,802 | |
| | 49,087 | | | | | Safestore Holdings Ltd. | | | 101,500 | |
| | 10,950 | | | @ | | Unite Group PLC | | | 36,562 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 213,135 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $922,579) | | | 1,003,546 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 69.5% |
| | | | | | | |
| | | | | | | Belgium: 0.8% |
| | 731 | | | | | Warehouses De Pauw SCA | | | 32,155 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 32,155 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 32.5% |
| | 1,014 | | | @ | | Fonciere Des Regions | | | 104,927 | |
| | 348 | | | | | Gecina S.A. | | | 35,778 | |
| | 143 | | | | | ICADE | | | 13,900 | |
| | 5,819 | | | | | Klepierre | | | 200,525 | |
| | 2,932 | | | | | Mercialys | | | 98,413 | |
| | 260 | | | | | Societe de la Tour Eiffel | | | 19,847 | |
| | 360 | | | | | Societe Immobiliere de Location pour l’Industrie et le Commerce | | | 42,413 | |
| | 4,030 | | | | | Unibail | | | 761,672 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,277,475 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 0.3% |
| | 6,210 | | | | | Immobiliare Grande Distribuz | | | 10,993 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,993 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 5.7% |
| | 2,777 | | | | | Corio NV | | | 160,657 | |
| | 1,070 | | | | | Eurocommercial Properties NV | | | 40,118 | |
| | 437 | | | | | Vastned Retail NV | | | 25,344 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 226,119 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 30.2% |
| | 3,270 | | | @ | | Big Yellow Group PLC | | | 16,157 | |
| | 27,722 | | | | | British Land Co. PLC | | | 196,864 | |
| | 5,630 | | | | | Derwent Valley Holdings PLC | | | 124,069 | |
| | 19,873 | | | | | Great Portland Estates PLC | | | 95,132 | |
| | 34,605 | | | | | Hammerson PLC | | | 202,007 | |
| | 24,030 | | | | | Hansteen Holdings PLC | | | 27,640 | |
| | 32,521 | | | | | Land Securities Group PLC | | | 325,226 | |
| | 5,661 | | | | | Liberty International PLC | | | 42,214 | |
| | 23,136 | | | | | Segro PLC | | | 109,209 | |
| | 8,426 | | | | | Shaftesbury PLC | | | 50,144 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,188,662 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $2,582,757) | | | 2,735,404 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 0.9% |
| | | | | | | |
| | | | | | | Luxembourg: 0.9% |
| | 5,280 | | | @ | | Prologis European Properties | | | 33,373 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $33,984) | | | 33,373 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $3,539,320) | | | 3,772,323 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 0.8% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 0.8% |
| | 30,044 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 30,044 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $30,044) | | | 30,044 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $3,569,364)* | | | 96.7 | % | | $ | 3,802,367 | |
| | | | | Other Assets and
Liabilities - Net | | | 3.3 | | | | 131,166 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 3,933,533 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| | | |
| * | | Cost for federal income tax purposes is $4,246,996. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 364,564 | |
| Gross Unrealized Depreciation | | | (809,193 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (444,629 | ) |
| | | | | |
See Accompanying Notes to Financial Statements
107
PORTFOLIO OF INVESTMENTS
ING European Real Estate Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Closed-End Funds | | | 0.9 | % |
| Diversified | | | 62.6 | |
| Office Property | | | 4.4 | |
| Real Estate | | | 22.9 | |
| Shopping Centers | | | 0.6 | |
| Storage | | | 0.4 | |
| Storage/Warehousing | | | 2.6 | |
| Warehouse/Industrial | | | 1.5 | |
| Short-Term Investments | | | 0.8 | |
| Other Assets and Liabilities — Net | | | 3.3 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock* | | $ | — | | | $ | 1,003,546 | | | $ | — | | | $ | 1,003,546 | |
| Real Estate Investment Trusts | | | — | | | | 2,735,404 | | | | — | | | | 2,735,404 | |
| Mutual Funds | | | — | | | | 33,373 | | | | — | | | | 33,373 | |
| Short-Term Investments | | | 30,044 | | | | — | | | | — | | | | 30,044 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 30,044 | | | $ | 3,772,323 | | | $ | — | | | $ | 3,802,367 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| * | For further breakdown of Common Stock by Industry type, please refer to the Portfolio of Investments. |
| # | 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
108
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 93.8% |
| | | | | | | |
| | | | | | | Australia: 4.7% |
| | 32,990 | | | | | AMP Ltd. | | $ | 189,320 | |
| | 24,175 | | | | | Aquarius Platinum Ltd. | | | 156,148 | |
| | 154,541 | | | @ | | Asciano Group | | | 239,834 | |
| | 36,981 | | | | | Australia & New Zealand Banking Group Ltd. | | | 819,102 | |
| | 42,875 | | | | | BHP Billiton Ltd. | | | 1,567,349 | |
| | 15,594 | | | | | Commonwealth Bank of Australia | | | 834,350 | |
| | 413,051 | | | | | Macquarie Airports Management Ltd. | | | 1,184,040 | |
| | 12,005 | | | @ | | Macquarie Atlas Roads Group | | | 10,886 | |
| | 23,889 | | | | | National Australia Bank Ltd. | | | 610,337 | |
| | 21,331 | | | | | Newcrest Mining Ltd. | | | 643,891 | |
| | 27,058 | | | | | Rio Tinto Ltd. | | | 1,767,974 | |
| | 3,999 | | | | | Wesfarmers Ltd. | | | 107,202 | |
| | 31,553 | | | | | Westpac Banking Corp. | | | 786,194 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,916,627 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 1.8% |
| | 54,625 | | | | | Erste Bank der Oesterreichischen Sparkassen AG | | | 2,425,272 | |
| | 25,400 | | | | | OMV AG | | | 907,614 | |
| | 1,974 | | | | | Voestalpine AG | | | 73,426 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,406,312 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 0.4% |
| | 17,790 | | | @ | | KBC Groep NV | | | 795,958 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 795,958 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 0.9% |
| | 5,744 | | | | | All America Latina Logistica S.A. | | | 51,385 | |
| | 13,655 | | | | | Amil Participacoes S.A. | | | 111,942 | |
| | 12,292 | | | | | Centrais Eletricas Brasileiras S.A. | | | 174,312 | |
| | 57,317 | | | @ | | Hypermarcas SA | | | 785,110 | |
| | 15,412 | | | | | Perdigao S.A. | | | 201,444 | |
| | 12,432 | | | | | Vale S.A. ADR | | | 380,792 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,704,985 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 5.5% |
| | 2,016 | | | | | Agnico-Eagle Mines Ltd. | | | 127,871 | |
| | 6,841 | | | | | Bank of Montreal | | | 424,886 | |
| | 12,078 | | | | | Bank of Nova Scotia | | | 615,671 | |
| | 1,847 | | | @ | | Barrick Gold Corp. | | | 80,580 | |
| | 54,270 | | | | | Barrick Gold Corp. | | | 2,366,766 | |
| | 6,321 | | | | | Canadian Imperial Bank of Commerce | | | 463,963 | |
| | 2,716 | | | | | Canadian Pacific Railway Ltd. | | | 160,104 | |
| | 2,725 | | | | | Cenovus Energy, Inc. | | | 80,130 | |
| | 12,178 | | | | | GoldCorp, Inc. | | | 526,419 | |
| | 8,055 | | | | | Iamgold Corp. | | | 144,162 | |
| | 2,075 | | | @ | | IGM Financial, Inc. | | | 86,142 | |
| | 22,201 | | | @ | | Ivanhoe Mines Ltd. | | | 353,406 | |
| | 9,266 | | | | | Kinross Gold Corp. | | | 176,964 | |
| | 15,612 | | | | | Manulife Financial Corp. | | | 281,563 | |
| | 5,222 | | | | | Potash Corp. of Saskatchewan | | | 576,949 | |
| | 16,867 | | | | | Royal Bank of Canada | | | 1,022,680 | |
| | 16,769 | | | @ | | Silver Wheaton Corp. | | | 329,503 | |
| | 3,039 | | | | | Sun Life Financial, Inc. | | | 89,363 | |
| | 34,365 | | | | | Suncor Energy, Inc. | | | 1,175,609 | |
| | 37,483 | | | | | Talisman Energy, Inc. | | | 638,001 | |
| | 9,233 | | | | | Toronto Dominion Bank | | | 686,249 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,406,981 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 1.1% |
| | 1,203,156 | | | @ | | Beijing Capital International Airport Co., Ltd. | | | 723,786 | |
| | 80,000 | | | | | China Shenhua Energy Co., Ltd. | | | 343,290 | |
| | 37,000 | | | | | China Yurun Food Group Ltd. | | | 112,198 | |
| | 46,475 | | | | | Hengan International Group Co., Ltd. | | | 356,785 | |
| | 74,000 | | | | | Shandong Weigao Group Medical Polymer Co., Ltd. | | | 343,088 | |
| | 44,400 | | | | | Sinopharm Group Co. | | | 200,115 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,079,262 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Czech Republic: 1.4% |
| | 12,442 | | | S | | Komercni Banka A/S | | | 2,553,612 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,553,612 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 1.1% |
| | 51 | | | | | AP Moller — Maersk A/S — Class B | | | 428,207 | |
| | 5,389 | | | | | DSV A/S | | | 96,326 | |
| | 17,810 | | | | | Novo-Nordisk A/S | | | 1,465,369 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,989,902 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.7% |
| | 7,862 | | | | | Fortum OYJ | | | 203,148 | |
| | 7,558 | | | | | Kesko OYJ | | | 292,992 | |
| | 46,336 | | | | | Stora Enso OYJ (Euro Denominated Security) | | | 386,856 | |
| | 28,803 | | | | | UPM-Kymmene OYJ | | | 413,348 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,296,344 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 6.0% |
| | 4,839 | | | | | ADP | | | 398,239 | |
| | 29,871 | | | | | AXA S.A. | | | 593,609 | |
| | 23,005 | | | | | BNP Paribas | | | 1,580,127 | |
| | 9,616 | | | | | Carrefour S.A. | | | 471,317 | |
| | 4,175 | | | @ | | CFAO S.A. | | | 144,688 | |
| | 4,895 | | | | | Electricite de France | | | 262,342 | |
| | 7,540 | | | | | Eutelsat Communications | | | 268,416 | |
| | 9,048 | | | | | France Telecom S.A. | | | 198,076 | |
| | 28,358 | | | | | Groupe Danone | | | 1,670,864 | |
| | 4,705 | | | L | | Iliad S.A. | | | 470,431 | |
| | 8,004 | | | S | | LVMH Moet Hennessy Louis Vuitton S.A. | | | 921,111 | |
| | 3,857 | | | | | PPR | | | 518,380 | |
| | 6,042 | | | S | | Publicis Groupe | | | 266,587 | |
| | 20,377 | | | @ | | Sanofi-Aventis | | | 1,390,091 | |
| | 3,881 | | | | | Schneider Electric S.A. | | | 440,605 | |
| | 3,698 | | | | | Technip S.A. | | | 295,696 | |
| | 1,021 | | | | | Vallourec | | | 203,366 | |
| | 10,802 | | | | | Veolia Environnement | | | 339,350 | |
| | 13,917 | | | | | Vinci S.A. | | | 775,530 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,208,825 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 6.2% |
| | 5,712 | | | | | Adidas AG | | | 336,581 | |
| | 7,996 | | | S | | Allianz AG | | | 916,703 | |
| | 9,998 | | | | | Bayer AG | | | 638,644 | |
| | 2,052 | | | | | Bilfinger Berger AG | | | 136,279 | |
| | 19,949 | | | @ | | DaimlerChrysler AG | | | 1,026,448 | |
| | 7,791 | | | | | Deutsche Boerse AG | | | 604,835 | |
| | 10,439 | | | | | Deutsche Telekom AG | | | 135,919 | |
| | 26,100 | | | | | E.ON AG | | | 962,511 | |
| | 47,504 | | | | | Fraport AG Frankfurt Airport Services Worldwide | | | 2,463,083 | |
| | 9,599 | | | | | Fresenius AG | | | 682,891 | |
| | 13,190 | | | | | HeidelbergCement AG | | | 816,744 | |
| | 4,291 | | | | | Henkel KGaA | | | 194,067 | |
| | 1,182 | | | | | Hochtief AG | | | 97,567 | |
| | 11,713 | | | | | MAN AG | | | 1,105,457 | |
| | 1,933 | | | | | Metro AG | | | 116,207 | |
| | 7,560 | | | S | | RWE AG | | | 621,872 | |
| | 9,133 | | | | | SAP AG | | | 440,650 | |
| | 4,311 | | | | | Siemens AG | | | 425,178 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,721,636 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.2% |
| | 15,387 | | | | | Coca-Cola Hellenic Bottling Co. S.A. | | | 417,224 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 417,224 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
109
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Hong Kong: 1.5% |
| | 208,000 | | | @ | | China Mengniu Dairy Co., Ltd. | | $ | 623,965 | |
| | 178,229 | | | | | China Merchants Holdings International Co., Ltd. | | | 619,134 | |
| | 294,000 | | | | | China Resources Enterprise | | | 1,037,241 | |
| | 540,717 | | | @ | | GOME Electrical Appliances Holdings Ltd. | | | 174,269 | |
| | 448,000 | | | | | Lenovo Group Ltd. | | | 330,272 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,784,881 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hungary: 1.1% |
| | 60,221 | | | @,S | | OTP Bank Nyrt | | | 2,116,857 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,116,857 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 2.8% |
| | 7,577 | | | | | ACC Ltd. | | | 153,762 | |
| | 21,950 | | | | | Axis Bank Ltd. | | | 622,195 | |
| | 3,698 | | | | | Bharat Heavy Electricals | | | 206,264 | |
| | 26,536 | | | | | Bharti Airtel Ltd. | | | 177,197 | |
| | 3,355 | | | | | Dr Reddys Laboratories Ltd. | | | 94,631 | |
| | 40,667 | | | | | Gujarat Ambuja Cements Ltd. | | | 110,366 | |
| | 43,300 | | | | | ICICI Bank Ltd. | | | 918,413 | |
| | 4,406 | | | | | Infosys Technologies Ltd. ADR | | | 263,831 | |
| | 20,022 | | | | | Larsen & Toubro Ltd. | | | 723,068 | |
| | 7,572 | | | | | Sterlite Industries India Ltd. ADR | | | 137,356 | |
| | 34,955 | | | | | Tata Motors Ltd. | | | 677,031 | |
| | 82,739 | | | | | Tata Steel Ltd. | | | 1,141,548 | |
| | 3,899 | | | | | Ultratech Cement Ltd. | | | 85,046 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,310,708 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 0.2% |
| | 340,979 | | | | | Telekomunikasi Indonesia Tbk PT | | | 294,366 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 294,366 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.5% |
| | 12,439 | | | | | CRH PLC | | | 354,414 | |
| | 90,825 | | | @ | | Dragon Oil PLC | | | 666,140 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,020,554 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 0.5% |
| | 16,214 | | | | | Teva Pharmaceutical Industries Ltd. ADR | | | 952,248 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 952,248 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 2.1% |
| | 25,902 | | | | | Buzzi Unicem S.p.A. | | | 385,070 | |
| | 26,365 | | | | | ENI S.p.A. | | | 589,241 | |
| | 11,208 | | | | | Fiat S.p.A | | | 147,110 | |
| | 45,884 | | | @ | | Intesa Sanpaolo S.p.A. | | | 151,230 | |
| | 57,472 | | | @ | | Mediobanca S.p.A. | | | 530,466 | |
| | 6,344 | | | | | Prysmian S.p.A. | | | 114,231 | |
| | 7,930 | | | | | Saipem S.p.A. | | | 296,117 | |
| | 323,990 | | | @ | | Telecom Italia S.p.A. | | | 452,971 | |
| | 468,024 | | | @,S | | UniCredito Italiano S.p.A. | | | 1,226,553 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,892,989 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 10.0% |
| | 5,501 | | | | | Aisin Seiki Co., Ltd. | | | 167,170 | |
| | 11,700 | | | | | Asahi Breweries Ltd. | | | 210,172 | |
| | 23,000 | | | | | Asahi Glass Co., Ltd. | | | 271,783 | |
| | 30,500 | | | | | Bank of Yokohama Ltd. | | | 158,582 | |
| | 13,305 | | | S | | Canon, Inc. | | | 608,615 | |
| | 27 | | | | | Central Japan Railway Co. | | | 219,858 | |
| | 16,800 | | | | | Chiba Bank Ltd. | | | 106,394 | |
| | 14,800 | | | | | Credit Saison Co., Ltd. | | | 216,454 | |
| | 6,100 | | | | | Daikin Industries Ltd. | | | 230,033 | |
| | 8,688 | | | | | Denso Corp. | | | 253,544 | |
| | 1,650 | | | | | Diamond Lease Co., Ltd. | | | 63,881 | |
| | 5,100 | | | | | East Japan Railway Co. | | | 341,158 | |
| | 2,700 | | | | | Eisai Co., Ltd. | | | 92,282 | |
| | 6,200 | | | | | Fanuc Ltd. | | | 732,132 | |
| | 36,000 | | | | | Fukuoka Financial Group, Inc. | | | 156,196 | |
| | 44,428 | | | S | | Honda Motor Co., Ltd. | | | 1,503,335 | |
| | 31,300 | | | | | Itochu Corp. | | | 271,173 | |
| | 5,300 | | | | | JFE Holdings, Inc. | | | 189,008 | |
| | 11,800 | | | | | Kirin Brewery Co., Ltd. | | | 169,056 | |
| | 13,105 | | | | | Komatsu Ltd. | | | 264,162 | |
| | 16,319 | | | | | Kubota Corp. | | | 143,334 | |
| | 1,300 | | | | | Kyocera Corp. | | | 130,528 | |
| | 35,584 | | | | | Matsushita Electric Industrial Co., Ltd. | | | 521,479 | |
| | 66,000 | | | | | Mazda Motor Corp. | | | 194,903 | |
| | 30,900 | | | | | Mitsubishi Corp. | | | 731,956 | |
| | 26,000 | | | | | Mitsubishi Electric Corp. | | | 231,725 | |
| | 23,000 | | | | | Mitsubishi Heavy Industries Ltd. | | | 92,646 | |
| | 217,600 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 1,133,921 | |
| | 44,100 | | | | | Mitsui & Co., Ltd. | | | 662,783 | |
| | 6,000 | | | | | NGK Insulators Ltd. | | | 118,248 | |
| | 10,500 | | | | | Nidec Corp. | | | 1,077,294 | |
| | 3,701 | | | | | Nintendo Co., Ltd. | | | 1,243,268 | |
| | 4,200 | | | | | Nippon Telegraph & Telephone Corp. | | | 170,955 | |
| | 55,400 | | | @ | | Nissan Motor Co., Ltd. | | | 482,044 | |
| | 12,000 | | | | | NSK Ltd. | | | 91,537 | |
| | 176 | | | | | NTT DoCoMo, Inc. | | | 273,819 | |
| | 5,310 | | | | | ORIX Corp. | | | 485,334 | |
| | 11,600 | | | | | Resona Holdings, Inc. | | | 141,677 | |
| | 13,000 | | | | | Ricoh Co., Ltd. | | | 220,839 | |
| | 2,600 | | | | | Shin-Etsu Chemical Co., Ltd. | | | 149,878 | |
| | 1,700 | | | | | SMC Corp. | | | 243,662 | |
| | 20,633 | | | | | Sony Corp. | | | 706,453 | |
| | 4,300 | | | | | Stanley Electric Co., Ltd. | | | 87,913 | |
| | 30,200 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 998,770 | |
| | 82,900 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 501,342 | |
| | 31,600 | | | | | Suzuki Motor Corp. | | | 664,224 | |
| | 3,500 | | | | | Takeda Pharmaceutical Co., Ltd. | | | 150,274 | |
| | 18,900 | | | S | | Toyota Motor Corp. | | | 730,257 | |
| | 3,220 | | | | | Uni-Charm Corp. | | | 312,986 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,919,037 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.6% |
| | 23,573 | | | @,L | | Evraz Group SA GDR — Reg S | | | 850,132 | |
| | 8,546 | | | @ | | L’OCCITANE International | | | 16,766 | |
| | 12,763 | | | | | SES S.A. | | | 292,514 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,159,412 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Macau: 0.1% |
| | | | | | | | | | | | | | | |
| | 131,200 | | | @ | | Sands China Ltd. | | | | | | | 212,986 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 212,986 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Malaysia: 0.0% |
| | 56,300 | | | @ | | TM International Bhd | | | 68,572 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 68,572 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 2.0% |
| | 17,016 | | | | | America Movil SA de CV — Series L ADR | | | 875,984 | |
| | 66,517 | | | @ | | Cemex SA de CV ADR | | | 790,222 | |
| | 183,797 | | | @ | | Cemex SAB de C.V. | | | 219,292 | |
| | 24,466 | | | | | Fomento Economico Mexicano SA de CV ADR | | | 1,157,976 | |
| | 21,049 | | | @ | | Grupo Comercial Chedraui | | | 58,126 | |
| | 71,596 | | | @ | | Grupo Financiero Banorte SA de CV | | | 287,844 | |
| | 9,738 | | | @ | | Grupo Televisa S.A. | | | 40,519 | |
| | 14,919 | | | | | Grupo Televisa SA ADR | | | 310,017 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,739,980 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 6.0% |
| | 11,118 | | | | | ASML Holding NV | | | 364,801 | |
| | 15,846 | | | | | Heineken NV | | | 738,864 | |
| | 22,797 | | | | | Koninklijke Philips Electronics NV | | | 765,504 | |
| | 8,105 | | | @ | | Randstad Holdings NV | | | 410,672 | |
See Accompanying Notes to Financial Statements
110
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Netherlands (continued) |
| | 55,438 | | | | | Royal Dutch Shell PLC | | $ | 1,739,536 | |
| | 67,305 | | | | | Royal Dutch Shell PLC — Class A | | | 2,096,342 | |
| | 68,073 | | | | | Royal KPN NV | | | 1,021,299 | |
| | 41,733 | | | | | TNT NV | | | 1,275,354 | |
| | 68,472 | | | | | Unilever NV | | | 2,083,112 | |
| | 23,279 | | | @ | | X5 Retail Group N.V. GDR | | | 826,884 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,322,368 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 1.3% |
| | 21,849 | | | | | DnB NOR ASA | | | 258,586 | |
| | 191,897 | | | @ | | Marine Harvest | | | 178,059 | |
| | 63,143 | | | | | Statoil ASA | | | 1,526,780 | |
| | 36,555 | | | @ | | Storebrand ASA | | | 274,931 | |
| | 20,789 | | | @ | | Telenor ASA | | | 295,538 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,533,894 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Papua New Guinea: 0.1% |
| | 68,005 | | | | | Lihir Gold Ltd. | | | 240,319 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 240,319 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Poland: 1.6% |
| | 23,567 | | | @ | | Bank Pekao S.A. | | | 1,342,912 | |
| | 1,750 | | | @ | | Bank Zachodni WBK S.A. | | | 128,528 | |
| | 109,699 | | | | | Powszechna Kasa Oszczednosci Bank Polski S.A. | | | 1,579,681 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,051,121 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 0.2% |
| | 23,525 | | | | | Galp Energia SGPS S.A. | | | 377,160 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 377,160 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Romania: 0.2% |
| | 2,650,000 | | | @ | | SNP Petrom SA | | | 277,693 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 277,693 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 4.8% |
| | 8,577 | | | @ | | CTC Media, Inc. | | | 144,866 | |
| | 31,529 | | | | | Magnit OAO GDR | | | 590,881 | |
| | 15,900 | | | | | Mechel OAO ADR | | | 408,630 | |
| | 76,841 | | | @ | | MMC Norilsk Nickel ADR | | | 1,475,347 | |
| | 1,898 | | | | | Mobile Telesystems Finance SA ADR | | | 104,865 | |
| | 9,268 | | | | | Novatek OAO GDR | | | 694,379 | |
| | 2,300 | | | | | Novorossiysk Commercial Sea Port GDR | | | 30,643 | |
| | 2,774 | | | @,L | | OAO Gazprom ADR | | | 76,285 | |
| | 151,467 | | | @ | | OAO Rosneft Oil Co. GDR | | | 1,212,177 | |
| | 1,317,272 | | | | | Sberbank of Russian Federation | | | 3,556,626 | |
| | 3,450 | | | @ | | Sistema JSFC GDR | | | 91,754 | |
| | 3,490 | | | @ | | Uralkali GDR | | | 74,335 | |
| | 106,106 | | | | | VTB Bank OJSC GDR | | | 565,849 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,026,637 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 1.3% |
| | 1,937 | | | | | Anglogold Ashanti Ltd. ADR | | | 81,050 | |
| | 53,682 | | | @ | | Aspen Pharmacare Holdings Ltd. | | | 604,113 | |
| | 10,873 | | | | | Impala Platinum Holdings Ltd. | | | 306,565 | |
| | 14,582 | | | | | Massmart Holdings Ltd. | | | 216,072 | |
| | 62,452 | | | | | Shoprite Holdings Ltd. | | | 663,221 | |
| | 37,680 | | | | | Standard Bank Group Ltd. | | | 580,530 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,451,551 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.4% |
| | 8,891 | | | | | Hyundai Motor Co. | | | 1,084,319 | |
| | 1,635 | | | | | Posco | | | 733,189 | |
| | 1,118 | | | | | Samsung Electronics Co., Ltd. | | | 850,059 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,667,567 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 0.4% |
| | 9,193 | | | @ | | Amadeus IT Holding SA | | | 146,880 | |
| | 22,821 | | | | | Cintra Concesiones DE Infrae | | | 200,994 | |
| | 5,949 | | | | | Inditex S.A. | | | 368,203 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 716,077 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.3% |
| | 20,603 | | | | | Atlas Copco AB — Class A | | | 331,381 | |
| | 8,676 | | | | | Hennes & Mauritz AB | | | 553,604 | |
| | 37,131 | | | @ | | Sandvik AB | | | 532,194 | |
| | 16,139 | | | | | Svenska Cellulosa AB — B Shares | | | 210,290 | |
| | 4,609 | | | | | Swedish Match AB | | | 104,484 | |
| | 14,325 | | | | | TeliaSonera AB | | | 98,186 | |
| | 48,051 | | | @ | | Volvo AB — B Shares | | | 596,141 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,426,280 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 7.9% |
| | 25,768 | | | @ | | ABB Ltd. | | | 494,269 | |
| | 20,409 | | | | | Credit Suisse Group | | | 936,728 | |
| | 848 | | | | | Flughafen Zuerich AG | | | 278,938 | |
| | 6,859 | | | | | Holcim Ltd. | | | 511,123 | |
| | 57,673 | | | | | Nestle S.A. | | | 2,821,993 | |
| | 21,096 | | | | | Nobel Biocare Holding AG | | | 462,386 | |
| | 61,892 | | | | | Novartis AG | | | 3,155,549 | |
| | 12,627 | | | | | Roche Holding AG — Genusschein | | | 1,993,667 | |
| | 1,244 | | | | | Swatch Group AG — BR | | | 364,447 | |
| | 8,069 | | | | | Swiss Reinsurance | | | 349,940 | |
| | 774 | | | | | Swisscom AG | | | 262,667 | |
| | 3,660 | | | | | Syngenta AG | | | 927,333 | |
| | 41,155 | | | @ | | UBS AG — Reg | | | 637,581 | |
| | 78,337 | | | | | Xstrata PLC | | | 1,285,035 | |
| | 1,746 | | | | | Zurich Financial Services AG | | | 387,079 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,868,735 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 3.0% |
| | 317,411 | | | | | Acer, Inc. | | | 865,569 | |
| | 360,821 | | | | | Asustek Computer, Inc. | | | 695,743 | |
| | 79,000 | | | | | High Tech Computer Corp. | | | 1,058,574 | |
| | 433,000 | | | | | HON HAI Precision Industry Co., Ltd. | | | 2,032,731 | |
| | 3,361 | | | | | MediaTek, Inc. | | | 56,909 | |
| | 443,000 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 866,995 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,576,521 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.1% |
| | 1,219,000 | | | | | Thai Beverage PCL | | | 252,590 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 252,590 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ukraine: 1.0% |
| | 5,090,724 | | | @ | | JSCB Ukrsotsbank | | | 465,045 | |
| | 3,938,839 | | | @ | | Raiffeisen Bank Aval | | | 245,090 | |
| | 11,184,513 | | | @ | | UkrTelecom | | | 1,103,769 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,813,904 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 11.8% |
| | 19,524 | | | @ | | Anglo American PLC | | | 829,300 | |
| | 60,924 | | | | | ARM Holdings PLC | | | 234,986 | |
| | 328,390 | | | | | Barclays PLC | | | 1,686,885 | |
| | 31,951 | | | | | BG Group PLC | | | 540,058 | |
| | 40,792 | | | | | BHP Billiton PLC | | | 1,245,402 | |
| | 36,480 | | | @ | | Cairn Energy PLC | | | 222,631 | |
| | 4,055 | | | | | Carnival PLC | | | 175,661 | |
| | 26,854 | | | | | Compass Group PLC | | | 218,399 | |
| | 42,590 | | | S | | Diageo PLC | | | 726,381 | |
| | 122,955 | | | | | GlaxoSmithKline PLC | | | 2,282,174 | |
| | 54,655 | | | | | Imperial Tobacco Group PLC | | | 1,557,019 | |
| | 123,087 | | | | | Legal & General Group PLC | | | 160,055 | |
| | 2,115,574 | | | @ | | Lloyds TSB Group PLC | | | 2,116,626 | |
| | 6,549 | | | @ | | Lonmin PLC | | | 189,206 | |
| | 16,172 | | | | | Peter Hambro Mining PLC | | | 288,919 | |
| | 18,632 | | | | | Prudential PLC | | | 163,578 | |
| | 44,678 | | | | | Reckitt Benckiser PLC | | | 2,320,938 | |
See Accompanying Notes to Financial Statements
111
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 42,498 | | | | | Rio Tinto PLC | | $ | 2,197,175 | |
| | 3,177,810 | | | @,I | | Rolls-Royce Group PLC — C Shares | | | 4,862 | |
| | 32,010 | | | | | Rolls-Royce Group PLC | | | 282,056 | |
| | 576,972 | | | @ | | Royal Bank of Scotland Group PLC | | | 472,139 | |
| | 10,035 | | | | | SABMiller PLC | | | 314,599 | |
| | 9,052 | | | | | Shire PLC | | | 199,400 | |
| | 8,051 | | | | | Smith & Nephew PLC | | | 83,470 | |
| | 130,443 | | | | | Tesco PLC | | | 865,194 | |
| | 718,013 | | | S | | Vodafone Group PLC | | | 1,591,018 | |
| | 4,873 | | | | | Whitbread PLC | | | 113,878 | |
| | 96,229 | | | | | WM Morrison Supermarkets PLC | | | 425,739 | |
| | 76,234 | | | | | WPP PLC | | | 808,261 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,316,009 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $146,340,498) | | | 176,888,684 | |
| | | | | | | | | | | |
| |
EXCHANGE-TRADED FUNDS: 3.4% |
| | | | | | | |
| | | | | | | Emerging Markets: 1.0% |
| | 45,089 | | | L | | iShares MSCI Emerging Markets Index Fund | | | 1,895,992 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,895,992 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 2.4% |
| | 45,112 | | | L | | Market Vectors — Gold Miners ETF | | | 2,279,509 | |
| | 19,287 | | | @ | | SPDR Gold Trust | | | 2,225,334 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,504,843 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Exchange-Traded Funds
(Cost $6,231,319) | | | 6,400,835 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.2% |
| | | | | | | |
| | | | | | | Brazil: 0.7% |
| | 6,778 | | | | | Centrais Eletricas Brasileiras S.A. | | | 118,150 | |
| | 13,766 | | | | | Cia Brasileira de Distribuicao Grupo Pao de Acucar | | | 468,515 | |
| | 35,671 | | | | | Petroleo Brasileiro S.A. | | | 672,480 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,259,145 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.5% |
| | 5,128 | | | | | Henkel KGaA — Vorzug | | | 274,947 | |
| | 4,202 | | | | | Porsche AG | | | 242,938 | |
| | 4,322 | | | | | Volkswagen AG | | | 417,562 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 935,447 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $2,038,662 ) | | | 2,194,592 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.0% |
| | | | | | | |
| | | | | | | Brazil: 0.0% |
| | 59 | | | | | Cia Brasileira de Distribuicao Grupo Pao de Acucar | | | — | |
| | | | | | | | | | | | | | — | |
| | | | | | | Total Rights
(Cost $—) | | | — | |
| | | | | | | | | | | | | | — | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $154,610,479) | | | 185,484,111 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 5.0% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 3.1% |
| | 5,841,952 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 5,841,952 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $5,841,952) | | | 5,841,952 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 1.9% |
| | 3,442,803 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | | 3,442,803 | |
| | 173,707 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 138,966 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $3,616,510) | | | 3,581,769 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $9,458,462) | | | 9,423,721 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $164,068,941)* | | | 103.4 | % | | $ | 194,907,832 | |
| | | | | Other Assets and
Liabilities - Net | | | (3.4 | ) | | | (6,392,679 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 188,515,153 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| 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. |
| 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 April 30, 2010. |
| | | |
| * | | Cost for federal income tax purposes is $168,008,338. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 35,407,685 | |
| Gross Unrealized Depreciation | | | (8,508,191 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 26,899,494 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.1 | % |
| Aerospace/Defense | | | 0.1 | |
| Agriculture | | | 0.9 | |
| Apparel | | | 0.2 | |
| Auto Manufacturers | | | 4.2 | |
| Auto Parts & Equipment | | | 0.3 | |
| Banks | | | 19.6 | |
| Beverages | | | 2.1 | |
| Building Materials | | | 2.1 | |
| Chemicals | | | 1.3 | |
| Coal | | | 0.2 | |
| Commercial Services | | | 0.2 | |
| Computers | | | 1.7 | |
| Cosmetics/Personal Care | | | 0.2 | |
| Distribution/Wholesale | | | 0.9 | |
| Diversified Financial Services | | | 0.9 | |
| Electric | | | 1.3 | |
| Electrical Components & Equipment | | | 0.5 | |
| Electronics | | | 2.2 | |
| Engineering & Construction | | | 4.0 | |
| Food | | | 6.5 | |
| Food Service | | | 0.1 | |
| Forest Products & Paper | | | 0.5 | |
See Accompanying Notes to Financial Statements
112
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Hand/Machine Tools | | | 0.4 | |
| Healthcare — Products | | | 1.3 | |
| Healthcare — Services | | | 0.1 | |
| Holding Companies — Diversified | | | 1.4 | |
| Home Furnishings | | | 0.6 | |
| Household Products/Wares | | | 1.4 | |
| Insurance | | | 1.8 | |
| Internet | | | 0.2 | |
| Iron/Steel | | | 1.8 | |
| Leisure Time | | | 0.1 | |
| Lodging | | | 0.1 | |
| Machinery — Construction & Mining | | | 0.3 | |
| Machinery — Diversified | | | 1.1 | |
| Media | | | 0.7 | |
| Metal Fabricate/Hardware | | | 0.2 | |
| Mining | | | 9.0 | |
| Miscellaneous Manufacturing | | | 0.2 | |
| Office/Business Equipment | | | 0.4 | |
| Oil & Gas | | | 7.2 | |
| Oil & Gas Services | | | 0.3 | |
| Pharmaceuticals | | | 6.8 | |
| Retail | | | 1.4 | |
| Semiconductors | | | 1.3 | |
| Software | | | 0.3 | |
| Telecommunications | | | 4.1 | |
| Toys/Games/Hobbies | | | 0.7 | |
| Transportation | | | 1.5 | |
| Water | | | 0.2 | |
| Other Long-Term Investments | | | 3.4 | |
| Short-Term Investments | | | 5.0 | |
| Other Assets and Liabilities — Net | | | (3.4 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | 10,886 | | | $ | 8,905,741 | | | $ | — | | | $ | 8,916,627 | |
| Austria | | | — | | | | 3,406,312 | | | | — | | | | 3,406,312 | |
| Belgium | | | — | | | | 795,958 | | | | — | | | | 795,958 | |
| Brazil | | | 1,704,985 | | | | — | | | | — | | | | 1,704,985 | |
| Canada | | | 10,406,981 | | | | — | | | | — | | | | 10,406,981 | |
| China | | | — | | | | 2,079,262 | | | | — | | | | 2,079,262 | |
| Czech Republic | | | — | | | | 2,553,612 | | | | — | | | | 2,553,612 | |
| Denmark | | | — | | | | 1,989,902 | | | | — | | | | 1,989,902 | |
| Finland | | | — | | | | 1,296,344 | | | | — | | | | 1,296,344 | |
| France | | | — | | | | 11,208,825 | | | | — | | | | 11,208,825 | |
| Germany | | | 135,919 | | | | 11,585,717 | | | | — | | | | 11,721,636 | |
| Greece | | | — | | | | 417,224 | | | | — | | | | 417,224 | |
| Hong Kong | | | — | | | | 2,784,881 | | | | — | | | | 2,784,881 | |
| Hungary | | | — | | | | 2,116,857 | | | | — | | | | 2,116,857 | |
| India | | | 401,187 | | | | 4,909,521 | | | | — | | | | 5,310,708 | |
| Indonesia | | | — | | | | 294,366 | | | | — | | | | 294,366 | |
| Ireland | | | — | | | | 1,020,554 | | | | — | | | | 1,020,554 | |
| Israel | | | 952,248 | | | | — | | | | — | | | | 952,248 | |
| Italy | | | — | | | | 3,892,989 | | | | — | | | | 3,892,989 | |
| Japan | | | — | | | | 18,919,037 | | | | — | | | | 18,919,037 | |
| Luxembourg | | | — | | | | 1,159,412 | | | | — | | | | 1,159,412 | |
| Macau | | | — | | | | 212,986 | | | | — | | | | 212,986 | |
| Malaysia | | | — | | | | 68,572 | | | | — | | | | 68,572 | |
| Mexico | | | 3,739,980 | | | | — | | | | — | | | | 3,739,980 | |
| Netherlands | | | — | | | | 11,322,368 | | | | — | | | | 11,322,368 | |
| Norway | | | — | | | | 2,533,894 | | | | — | | | | 2,533,894 | |
| Papua New Guinea | | | — | | | | 240,319 | | | | — | | | | 240,319 | |
| Poland | | | — | | | | 3,051,121 | | | | — | | | | 3,051,121 | |
| Portugal | | | — | | | | 377,160 | | | | — | | | | 377,160 | |
| Romania | | | 277,693 | | | | — | | | | — | | | | 277,693 | |
| Russia | | | 5,766,619 | | | | 3,260,018 | | | | — | | | | 9,026,637 | |
| South Africa | | | — | | | | 2,451,551 | | | | — | | | | 2,451,551 | |
| South Korea | | | — | | | | 2,667,567 | | | | — | | | | 2,667,567 | |
| Spain | | | 146,880 | | | | 569,197 | | | | — | | | | 716,077 | |
| Sweden | | | — | | | | 2,426,280 | | | | — | | | | 2,426,280 | |
| Switzerland | | | — | | | | 14,868,735 | | | | — | | | | 14,868,735 | |
| Taiwan | | | — | | | | 5,576,521 | | | | — | | | | 5,576,521 | |
| Thailand | | | — | | | | 252,590 | | | | — | | | | 252,590 | |
| Ukraine | | | 245,090 | | | | 1,568,814 | | | | — | | | | 1,813,904 | |
| United Kingdom | | | 2,197,175 | | | | 20,118,834 | | | | — | | | | 22,316,009 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 25,985,643 | | | | 150,903,041 | | | | — | | | | 176,888,684 | |
| | | | | | | | | | | | | | | | | |
| Exchange-Traded Funds | | | 6,400,835 | | | | — | | | | — | | | | 6,400,835 | |
| Preferred Stock | | | 586,665 | | | | 1,607,927 | | | | — | | | | 2,194,592 | |
| Short-Term Investments | | | 9,284,755 | | | | — | | | | 138,966 | | | | 9,423,721 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 42,257,898 | | | $ | 152,510,968 | | | $ | 138,966 | | | $ | 194,907,832 | |
| | | | | | | | | | | | | | | | | |
Other Financial Instruments+: | | | | | | | | | | | | | | | | |
| Forward foreign currency contracts | | | — | | | | 601,509 | | | | — | | | | 601,509 | |
| | | | | | | | | | | | | | | | | |
| Total Assets | | $ | 42,257,898 | | | $ | 153,112,477 | | | $ | 138,966 | | | $ | 195,509,341 | |
| | | | | | | | | | | | | | | | | |
Liabilities Table | | | | | | | | | | | | | | | | |
Other Financial Instruments+: | | | | | | | | | | | | | | | | |
| Futures | | | — | | | | (434,507 | ) | | | — | | | | (434,507 | ) |
| | | | | | | | | | | | | | | | | |
| Total Liabilities | | $ | — | | | $ | (434,507 | ) | | $ | — | | | $ | (434,507 | ) |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 138,966 | | | $ | — | | | $ | 138,966 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 138,966 | | | $ | — | | | $ | 138,966 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
113
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2010 (Unaudited) (continued)
As of April 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.
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| + | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, 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. |
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 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. |
At April 30, 2010 the following forward foreign currency contracts were outstanding for the ING Foreign Fund:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | Unrealized
|
| | | | | Settlement
| | Exchange
| | | | Appreciation
|
Currency | | Buy/Sell | | Date | | For | | Value | | (Depreciation) |
| |
| Canadian Dollar | | | | | | | | | | | | | | | | | | | | |
| CAD 3,243,708 | | | BUY | | | | 6/16/10 | | | $ | 3,161,484 | | | $ | 3,193,342 | | | $ | 31,858 | |
| EU Euro | | | | | | | | | | | | | | | | | | | | |
| EUR 2,689,222 | | | BUY | | | | 6/16/10 | | | | 3,618,388 | | | | 3,581,139 | | | | (37,249 | ) |
| EU Euro | | | | | | | | | | | | | | | | | | | | |
| EUR 2,404,309 | | | BUY | | | | 6/16/10 | | | | 3,259,181 | | | | 3,201,732 | | | | (57,449 | ) |
| EU Euro | | | | | | | | | | | | | | | | | | | | |
| EUR 2,419,785 | | | BUY | | | | 6/16/10 | | | | 3,271,936 | | | | 3,222,340 | | | | (49,596 | ) |
| Japanese Yen | | | | | | | | | | | | | | | | | | | | |
| JPY 374,440,302 | | | BUY | | | | 6/16/10 | | | | 4,151,223 | | | | 3,988,012 | | | | (163,211 | ) |
| South Korean Won | | | | | | | | | | | | | | | | | | | | |
| KRW 1,132,527,256 | | | BUY | | | | 6/16/10 | | | | 1,012,150 | | | | 1,020,424 | | | | 8,274 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (267,373 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Czech Koruna | | | | | | | | | | | | | | | | | | | | |
| CZK 36,173,325 | | | SELL | | | | 6/16/10 | | | $ | 1,929,656 | | | $ | 1,878,206 | | | $ | 51,450 | |
| EU Euro | | | | | | | | | | | | | | | | | | | | |
| EUR 15,478,325 | | | SELL | | | | 6/16/10 | | | | 21,107,792 | | | | 20,611,924 | | | | 495,868 | |
| EU Euro | | | | | | | | | | | | | | | | | | | | |
| EUR 3,670,310 | | | SELL | | | | 6/16/10 | | | | 4,834,621 | | | | 4,887,619 | | | | (52,998 | ) |
| EU Euro | | | | | | | | | | | | | | | | | | | | |
| EUR 3,533,556 | | | SELL | | | | 6/16/10 | | | | 4,641,622 | | | | 4,705,508 | | | | (63,886 | ) |
| Japanese Yen | | | | | | | | | | | | | | | | | | | | |
| JPY 248,912,893 | | | SELL | | | | 6/16/10 | | | | 2,665,129 | | | | 2,651,070 | | | | 14,059 | |
| Japanese Yen | | | | | | | | | | | | | | | | | | | | |
| JPY 125,527,409 | | | SELL | | | | 6/16/10 | | | | 1,329,549 | | | | 1,336,942 | | | | (7,393 | ) |
| Swedish Krona | | | | | | | | | | | | | | | | | | | | |
| SEK 7,338,803 | | | SELL | | | | 6/16/10 | | | | 1,010,683 | | | | 1,013,408 | | | | (2,725 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 434,375 | |
| | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
114
PORTFOLIO OF INVESTMENTS
ING Greater China Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 99.8% |
| | | | | | | |
| | | | | | | China: 36.6% |
| | 2,057,000 | | | | | Bank of China Ltd. | | $ | 1,058,913 | |
| | 235,000 | | | @ | | BBMG Corp. | | | 230,526 | |
| | 2,773,000 | | | | | China Construction Bank | | | 2,251,878 | |
| | 316,000 | | | | | China High Speed Transmission Equipment Group Co., Ltd. | | | 748,893 | |
| | 315,000 | | | | | China Life Insurance Co., Ltd. | | | 1,450,416 | |
| | 434,000 | | | | | China National Materials Co. Ltd | | | 282,044 | |
| | 1,500,000 | | | | | China Petroleum & Chemical Corp. | | | 1,202,699 | |
| | 215,500 | | | | | China Shenhua Energy Co., Ltd. | | | 924,736 | |
| | 572,000 | | | @ | | China Southern Airlines Co., Ltd. | | | 292,810 | |
| | 36,000 | | | | | Dongfang Electrical Machinery Co., Ltd. | | | 233,426 | |
| | 2,957,000 | | | | | Industrial and Commercial Bank of China Ltd. | | | 2,155,201 | |
| | 43,200 | | | | | Inner Mongolia Yitai Coal Co. | | | 239,501 | |
| | 358,000 | | | @ | | Lingbao Gold Co., Ltd. | | | 134,774 | |
| | 7,800 | | | | | Mindray Medical International Ltd. ADR | | | 297,960 | |
| | 834,000 | | | | | PetroChina Co., Ltd. | | | 960,405 | |
| | 57,500 | | | | | Ping An Insurance Group Co. of China Ltd. | | | 492,249 | |
| | 602,500 | | | @ | | Real Gold Mining Ltd. | | | 936,121 | |
| | 1,620,000 | | | | | Shanghai Forte Land Co. | | | 441,662 | |
| | 228,000 | | | | | Shenguan Holdings Group Ltd. | | | 210,814 | |
| | 261,000 | | | | | Shimao Property Holdings Ltd. | | | 399,432 | |
| | 21,700 | | | | | Tencent Holdings Ltd. | | | 448,759 | |
| | 418,000 | | | | | Yanzhou Coal Mining Co., Ltd. | | | 1,162,733 | |
| | 72,000 | | | | | Zhaojin Mining Industry Co., Ltd. | | | 138,448 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,694,400 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 36.8% |
| | 267,000 | | | | | BOC Hong Kong Holdings Ltd. | | | 639,005 | |
| | 84,000 | | | | | Cheung Kong Holdings Ltd. | | | 1,035,876 | |
| | 230,500 | | | | | China Mobile Ltd. | | | 2,256,375 | |
| | 218,160 | | | | | China Overseas Land & Investment Ltd. | | | 423,612 | |
| | 84,000 | | | | | China Resources Enterprise | | | 296,355 | |
| | 620,000 | | | | | Chow Sang Sang Holdings International Ltd. | | | 1,060,705 | |
| | 534,000 | | | | | CNOOC Ltd. | | | 939,291 | |
| | 31,836 | | | | | Esprit Holdings Ltd. | | | 228,049 | |
| | 1,686,000 | | | @ | | Fook Woo Group Holdings Ltd. | | | 564,595 | |
| | 1,456,000 | | | | | Global Bio-Chem Technology Group Co., Ltd. | | | 333,638 | |
| | 601,000 | | | @ | | Glorious Property Holdings Ltd. | | | 205,770 | |
| | 47,000 | | | | | Henderson Land Development Co., Ltd. | | | 296,235 | |
| | 70,700 | | | | | Hong Kong Exchanges and Clearing Ltd. | | | 1,155,357 | |
| | 122,500 | | | | | HongKong Electric Holdings | | | 722,841 | |
| | 230,000 | | | | | Hysan Development Co., Ltd. | | | 674,807 | |
| | 108,000 | | | | | Kerry Properties Ltd. | | | 498,197 | |
| | 29,500 | | | | | Kingboard Chemicals Holdings | | | 158,154 | |
| | 94,000 | | | | | Li & Fung Ltd. | | | 453,169 | |
| | 648,000 | | | @ | | Melco International Development | | | 291,142 | |
| | 180,000 | | | | | MTR Corp. | | | 630,782 | |
| | 558,000 | | | @ | | New Environmental Energy Holdings Ltd. | | | 135,137 | |
| | 333,000 | | | | | New World Development Ltd. | | | 590,645 | |
| | 265,000 | | | | | Ports Design Ltd. | | | 648,908 | |
| | 46,000 | | | | | Shanghai Industrial Holdings Ltd. | | | 198,742 | |
| | 76,000 | | | | | Shougang Concord International Enterprises Co., Ltd. | | | 13,733 | |
| | 57,000 | | | | | Sun Hung Kai Properties Ltd. | | | 790,251 | |
| | 281,000 | | | | | Wharf Holdings Ltd. | | | 1,519,735 | |
| | 25,000 | | | | | Zhuzhou CSR Times Electric Co., Ltd. | | | 52,782 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,813,888 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 26.4% |
| | 791,637 | | | | | AU Optronics Corp. | | | 912,112 | |
| | 15,436 | | | | | AU Optronics Corp. ADR | | | 178,903 | |
| | 270,000 | | | | | Cathay Financial Holding Co., Ltd. | | | 432,011 | |
| | 795,179 | | | @ | | China Life Insurance Co., Ltd. | | | 629,323 | |
| | 20,199 | | | @ | | Chunghwa Telecom Co., Ltd. ADR | | | 394,284 | |
| | 1,300,000 | | | | | E.Sun Financial Holding Co., Ltd. | | | 577,950 | |
| | 568,000 | | | @ | | Eva Airways Corp. | | | 294,631 | |
| | 194,085 | | | | | Far Eastern Textile Co., Ltd. | | | 210,588 | |
| | 64,800 | | | | | High Tech Computer Corp. | | | 868,299 | |
| | 158,000 | | | | | HON HAI Precision Industry Co., Ltd. | | | 741,735 | |
| | 85,680 | | | @ | | Hon Hai Precision Industry Co., Ltd. — GDR | | | 858,650 | |
| | 87,000 | | | @ | | Huaku Development Co. Ltd | | | 236,940 | |
| | 312,195 | | | | | InnoLux Display Corp. | | | 455,761 | |
| | 528,000 | | | | | Lite-On Technology Corp. | | | 700,749 | |
| | 26,060 | | | | | MediaTek, Inc. | | | 441,249 | |
| | 108,000 | | | | | Novatek Microelectronics Corp. Ltd. | | | 370,194 | |
| | 823,000 | | | | | Prince Housing & Development Corp. | | | 376,424 | |
| | 226,519 | | | @ | | Radium Life Tech Co., Ltd. | | | 201,149 | |
| | 188,000 | | | | | Taiwan Fertilizer Co., Ltd. | | | 598,230 | |
| | 707,000 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 1,383,670 | |
| | 300,000 | | | | | The Ambassador Hotel | | | 331,778 | |
| | 1,193,000 | | | | | United Microelectronics Corp. | | | 600,220 | |
| | 236,000 | | | | | Yulon Motor Co., Ltd. | | | 274,102 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,068,952 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $38,706,378) | | | 45,577,240 | |
| | | | | | | | | | | |
| |
WARRANTS: 0.0% |
| | | | | | | |
| | | | | | | Hong Kong: 0.0% |
| | 9,400 | | | | | Henderson Land Development Co., Ltd. | | | 3,256 | |
| | 2,950 | | | | | Kingboard Chemicals Holdings | | | 7,281 | |
| | | | | | | | | | | |
| | | | | | | Total Warrants
(Cost $-) | | | 10,537 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $38,706,378)* | | | 99.8 | % | | $ | 45,587,777 | |
| | | | | Other Assets and
Liabilities - Net | | | 0.2 | | | | 112,185 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 45,699,962 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| | | |
| * | | Cost for federal income tax purposes is $40,299,756. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 8,273,615 | |
| Gross Unrealized Depreciation | | | (2,985,594 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 5,288,021 | |
| | | | | |
See Accompanying Notes to Financial Statements
115
PORTFOLIO OF INVESTMENTS
ING Greater China Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Airlines | | | 1.3 | % |
| Apparel | | | 0.5 | |
| Auto Manufacturers | | | 0.6 | |
| Banks | | | 13.4 | |
| Biotechnology | | | 0.7 | |
| Building Materials | | | 0.5 | |
| Chemicals | | | 1.7 | |
| Coal | | | 5.1 | |
| Computers | | | 4.4 | |
| Distribution/Wholesale | | | 1.0 | |
| Diversified Financial Services | | | 3.8 | |
| Electric | | | 1.6 | |
| Electrical Components & Equipment | | | 2.3 | |
| Electronics | | | 5.9 | |
| Environmental Control | | | 1.5 | |
| Food | | | 0.5 | |
| Healthcare — Products | | | 0.7 | |
| Holding Companies — Diversified | | | 5.0 | |
| Insurance | | | 6.6 | |
| Internet | | | 1.0 | |
| Iron/Steel | | | 0.0 | |
| Lodging | | | 0.7 | |
| Machinery — Construction & Mining | | | 0.6 | |
| Mining | | | 2.6 | |
| Oil & Gas | | | 6.8 | |
| Real Estate | | | 13.5 | |
| Retail | | | 4.2 | |
| Semiconductors | | | 6.1 | |
| Telecommunications | | | 5.8 | |
| Transportation | | | 1.4 | |
| Other Assets and Liabilities — Net | | | 0.2 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| China | | $ | 1,987,877 | | | $ | 14,706,523 | | | $ | — | | | $ | 16,694,400 | |
| Hong Kong | | | 564,595 | | | | 16,249,293 | | | | — | | | | 16,813,888 | |
| Taiwan | | | 573,187 | | | | 11,495,765 | | | | — | | | | 12,068,952 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 3,125,659 | | | | 42,451,581 | | | | — | | | | 45,577,240 | |
| | | | | | | | | | | | | | | | | |
| Warrants | | | — | | | | 10,537 | | | | — | | | | 10,537 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 3,125,659 | | | $ | 42,462,118 | | | $ | — | | | $ | 45,587,777 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| # | 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
116
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 96.8% |
| | | | | | | |
| | | | | | | Australia: 8.1% |
| | 5,746 | | | | | AMP Ltd. | | $ | 32,975 | |
| | 170,173 | | | @ | | Asciano Group | | | 264,094 | |
| | 5,223 | | | | | ASX Ltd. | | | 157,907 | |
| | 31,909 | | | | | Australia & New Zealand Banking Group Ltd. | | | 706,761 | |
| | 13,631 | | | | | Bendigo Bank Ltd. | | | 123,263 | |
| | 35,308 | | | | | BHP Billiton Ltd. | | | 1,290,728 | |
| | 70,602 | | | | | BlueScope Steel Ltd. | | | 169,401 | |
| | 51,136 | | | | | Brambles Ltd. | | | 339,997 | |
| | 17,980 | | | | | Commonwealth Bank of Australia | | | 962,011 | |
| | 9,285 | | | | | Computershare Ltd. | | | 100,832 | |
| | 29,945 | | | | | Crown Ltd. | | | 225,783 | |
| | 8,712 | | | | | CSL Ltd. | | | 260,327 | |
| | 2,831 | | | | | Macquarie Group Ltd. | | | 129,094 | |
| | 19,169 | | | | | National Australia Bank Ltd. | | | 489,747 | |
| | 1,050 | | | | | Newcrest Mining Ltd. | | | 31,695 | |
| | 30,279 | | | | | Nufarm Ltd. | | | 212,573 | |
| | 11,849 | | | | | Orica Ltd. | | | 287,350 | |
| | 22,518 | | | | | Origin Energy Ltd. | | | 338,667 | |
| | 5,839 | | | | | QBE Insurance Group Ltd. | | | 113,127 | |
| | 2,885 | | | | | Rio Tinto Ltd. | | | 188,506 | |
| | 23,908 | | | | | Suncorp-Metway Ltd. | | | 197,583 | |
| | 21,186 | | | | | Wesfarmers Ltd. | | | 567,940 | |
| | 36,191 | | | | | Westpac Banking Corp. | | | 901,757 | |
| | 4,105 | | | | | Woodside Petroleum Ltd. | | | 170,232 | |
| | 16,525 | | | | | Woolworths Ltd. | | | 412,800 | |
| | 5,950 | | | | | WorleyParsons Ltd. | | | 145,101 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,820,251 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 0.1% |
| | 1,009 | | | | | Erste Bank der Oesterreichischen Sparkassen AG | | | 44,798 | |
| | 2,208 | | | | | Wiener Staedtische Allgemeine Versicherung AG | | | 107,923 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 152,721 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 1.2% |
| | 16,047 | | | | | Anheuser-Busch InBev NV | | | 778,465 | |
| | 24,344 | | | @ | | Anheuser-Busch InBev NV | | | 162 | |
| | 24,625 | | | @ | | Dexia S.A. | | | 133,065 | |
| | 17,577 | | | | | Fortis | | | 53,991 | |
| | 1,850 | | | | | Groupe Bruxelles Lambert S.A. | | | 156,558 | |
| | 5,358 | | | | | UCB S.A. | | | 207,552 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,329,793 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 0.8% |
| | 1,331 | | | @ | | Danske Bank A/S | | | 34,749 | |
| | 10,911 | | | | | H Lundbeck A/S | | | 179,788 | |
| | 7,340 | | | | | Novo-Nordisk A/S | | | 603,920 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 818,457 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.3% |
| | 5,188 | | | | | Kesko OYJ | | | 201,117 | |
| | 27,726 | | | @ | | Nokia OYJ | | | 338,965 | |
| | 18,772 | | | | | Nokian Renkaat OYJ | | | 441,259 | |
| | 920 | | | | | Sampo OYJ | | | 22,614 | |
| | 8,904 | | | | | Wartsila OYJ | | | 453,380 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,457,335 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 8.0% |
| | 18,674 | | | | | AXA S.A. | | | 371,098 | |
| | 11,703 | | | | | BNP Paribas | | | 803,835 | |
| | 12,645 | | | | | Carrefour S.A. | | | 619,780 | |
| | 958 | | | | | Casino Guichard Perrachon S.A. | | | 84,566 | |
| | 1,369 | | | @ | | CNP Assurances | | | 115,238 | |
| | 6,865 | | | | | Compagnie Generale des Etablissements Michelin | | | 497,332 | |
| | 15,940 | | | | | Credit Agricole S.A. | | | 227,863 | |
| | 1,373 | | | | | Eurazeo | | | 95,195 | |
| | 29,603 | | | | | France Telecom S.A. | | | 648,060 | |
| | 4,318 | | | | | Gaz de France | | | 153,563 | |
| | 23,141 | | | | | Groupe Eurotunnel S.A. | | | 211,315 | |
| | 5,137 | | | | | Lafarge S.A. | | | 372,444 | |
| | 6,974 | | | @ | | Renault S.A. | | | 323,106 | |
| | 9,325 | | | @ | | Sanofi-Aventis | | | 636,139 | |
| | 6,138 | | | | | Schneider Electric S.A. | | | 696,839 | |
| | 6,226 | | | | | Scor S.A. | | | 146,864 | |
| | 6,480 | | | | | Societe Generale | | | 346,027 | |
| | 664 | | | | | Sodexho Alliance S.A. | | | 40,796 | |
| | 3,784 | | | | | Technip S.A. | | | 302,572 | |
| | 16,165 | | | | | Total S.A. | | | 879,495 | |
| | 2,284 | | | | | Vallourec | | | 454,935 | |
| | 24,309 | | | | | Vivendi | | | 637,685 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,664,747 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 7.3% |
| | 4,610 | | | | | Allianz AG | | | 528,514 | |
| | 16,549 | | | | | BASF AG | | | 962,137 | |
| | 5,919 | | | | | Bayer AG | | | 378,089 | |
| | 881 | | | @ | | DaimlerChrysler AG | | | 45,331 | |
| | 8,063 | | | | | Deutsche Bank AG | | | 562,780 | |
| | 607 | | | | | Deutsche Boerse AG | | | 47,123 | |
| | 33,466 | | | | | Deutsche Post AG | | | 542,804 | |
| | 45,649 | | | | | Deutsche Telekom AG | | | 594,362 | |
| | 9,421 | | | | | E.ON AG | | | 347,426 | |
| | 2,337 | | | @ | | Hannover Rueckversicheru — Reg | | | 109,686 | |
| | 8,134 | | | | | HeidelbergCement AG | | | 503,669 | |
| | 394 | | | | | Hochtief AG | | | 32,522 | |
| | 29,468 | | | @ | | Infineon Technologies AG | | | 208,640 | |
| | 2,683 | | | | | Muenchener Rueckversicherungs AG | | | 378,125 | |
| | 8,106 | | | | | RWE AG | | | 666,785 | |
| | 13,475 | | | | | SAP AG | | | 650,144 | |
| | 11,777 | | | | | Siemens AG | | | 1,161,523 | |
| | 14,358 | | | @ | | United Internet AG | | | 215,852 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,935,512 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.5% |
| | 9,608 | | | | | EFG Eurobank Ergasias S.A. | | | 77,236 | |
| | 1,535 | | | @ | | National Bank of Greece S.A. | | | 24,680 | |
| | 25,408 | | | @ | | Public Power Corp. | | | 415,937 | |
| | 1,047 | | | | | Titan Cement Co. S.A. | | | 27,860 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 545,713 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.3% |
| | 79,000 | | | | | BOC Hong Kong Holdings Ltd. | | | 189,069 | |
| | 7,000 | | | | | Cheung Kong Holdings Ltd. | | | 86,323 | |
| | 19,500 | | | | | Chinese Estates Holdings Ltd. | | | 33,202 | |
| | 29,000 | | | | | CLP Holdings Ltd. | | | 203,156 | |
| | 16,000 | | | | | Hang Lung Group Ltd. | | | 78,164 | |
| | 38,000 | | | | | Hang Lung Properties Ltd. | | | 136,697 | |
| | 3,470 | | | | | Hang Seng Bank Ltd. | | | 47,292 | |
| | 37,000 | | | | | Hong Kong & China Gas | | | 89,782 | |
| | 5,000 | | | | | Hong Kong Exchanges and Clearing Ltd. | | | 81,708 | |
| | 28,500 | | | | | HongKong Electric Holdings | | | 168,171 | |
| | 69,162 | | | | | Hutchison Whampoa Ltd. | | | 474,666 | |
| | 43,000 | | | | | Hysan Development Co., Ltd. | | | 126,160 | |
| | 8,000 | | | | | Li & Fung Ltd. | | | 38,568 | |
| | 17,000 | | | | | New World Development Ltd. | | | 30,153 | |
| | 28,000 | | | | | Shangri-La Asia Ltd. | | | 54,033 | |
| | 16,000 | | | | | Sun Hung Kai Properties Ltd. | | | 221,825 | |
| | 15,500 | | | | | Swire Pacific Ltd. | | | 173,213 | |
| | 1,550 | | | @ | | Swire Properties Ltd. | | | 7,022 | |
| | 25,000 | | | | | Wharf Holdings Ltd. | | | 135,208 | |
| | 31,000 | | | | | Wheelock & Co., Ltd. | | | 96,503 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,470,915 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 4.4% |
| | 1,484 | | | | | Altantia S.p.A. | | | 31,584 | |
| | 8,557 | | | | | Assicurazioni Generali S.p.A. | | | 180,621 | |
| | 99,654 | | | | | Banca Monte dei Paschi di Siena S.p.A. | | | 137,978 | |
| | 12,908 | | | | | Banche Popolari Unite Scpa | | | 159,850 | |
| | 146,758 | | | | | Enel S.p.A. | | | 768,854 | |
See Accompanying Notes to Financial Statements
117
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Italy (continued) |
| | 42,431 | | | | | ENI S.p.A. | | $ | 948,305 | |
| | 7,241 | | | | | Fondiaria-Sai S.p.A. | | | 100,303 | |
| | 111,571 | | | @ | | Intesa Sanpaolo S.p.A. | | | 367,729 | |
| | 26,908 | | | | | Intesa Sanpaolo S.p.A. — RNC | | | 71,431 | |
| | 25,350 | | | | | Italcementi S.p.A. | | | 288,267 | |
| | 51,506 | | | | | Mediaset S.p.A. | | | 407,870 | |
| | 12,162 | | | | | Saipem S.p.A. | | | 454,146 | |
| | 25,316 | | | | | Snam Rete Gas S.p.A. | | | 120,229 | |
| | 136,601 | | | @ | | Telecom Italia S.p.A. | | | 190,982 | |
| | 209,207 | | | @ | | UniCredito Italiano S.p.A. | | | 548,270 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,776,419 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 22.0% |
| | 9,700 | | | | | Aeon Credit Service Co., Ltd. | | | 105,786 | |
| | 9,100 | | | | | Aisin Seiki Co., Ltd. | | | 276,540 | |
| | 50,000 | | | | | Ajinomoto Co., Inc. | | | 469,616 | |
| | 48,000 | | | | | Asahi Glass Co., Ltd. | | | 567,198 | |
| | 16,000 | | | | | Bank of Kyoto Ltd. | | | 140,583 | |
| | 500 | | | | | Benesse Corp. | | | 22,989 | |
| | 19,185 | | | | | Bridgestone Corp. | | | 319,738 | |
| | 16,600 | | | | | Canon, Inc. | | | 759,339 | |
| | 44 | | | | | Central Japan Railway Co. | | | 358,287 | |
| | 11,000 | | | | | Chiba Bank Ltd. | | | 69,663 | |
| | 21,100 | | | | | Chubu Electric Power Co., Inc. | | | 490,230 | |
| | 10,900 | | | | | Chugoku Electric Power Co., Inc. | | | 208,228 | |
| | 8,000 | | | | | Credit Saison Co., Ltd. | | | 117,002 | |
| | 800 | | | | | Denso Corp. | | | 23,347 | |
| | 9,800 | | | | | East Japan Railway Co. | | | 655,559 | |
| | 3,000 | | | | | Eisai Co., Ltd. | | | 102,536 | |
| | 6,000 | | | | | Fuji Heavy Industries Ltd. | | | 33,580 | |
| | 1,000 | | | | | Fuji Photo Film Co., Ltd. | | | 34,272 | |
| | 21,000 | | | | | Gunma Bank Ltd. | | | 113,284 | |
| | 55,000 | | | | | Hokugin Financial Group, Inc. | | | 109,360 | |
| | 11,400 | | | | | Honda Motor Co., Ltd. | | | 385,748 | |
| | 3,100 | | | | | Idemitsu Kosan Co., Ltd. | | | 256,788 | |
| | 60,960 | | | | | Itochu Corp. | | | 528,137 | |
| | 1,100 | | | | | Japan Petroleum Exploration Co. | | | 56,172 | |
| | 37 | | | | | Japan Tobacco, Inc. | | | 128,221 | |
| | 16,200 | | | | | JFE Holdings, Inc. | | | 577,723 | |
| | 53,000 | | | | | Kajima Corp. | | | 134,666 | |
| | 900 | | | | | Kansai Electric Power Co., Inc. | | | 20,026 | |
| | 10,900 | | | | | Kao Corp. | | | 265,763 | |
| | 21,000 | | | | | Keisei Electric Railway Co., Ltd. | | | 124,326 | |
| | 5,000 | | | | | Kuraray Co., Ltd. | | | 65,455 | |
| | 20,200 | | | | | Kyushu Electric Power Co., Inc. | | | 408,663 | |
| | 5,800 | | | | | Mabuchi Motor Co., Ltd. | | | 319,683 | |
| | 7,300 | | | | | Makita Corp. | | | 226,276 | |
| | 15,000 | | | | | Mitsubishi Estate Co., Ltd. | | | 270,412 | |
| | 57,000 | | | | | Mitsubishi Gas Chemical Co., Inc. | | | 343,708 | |
| | 120,997 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 630,520 | |
| | 28,092 | | | | | Mitsui & Co., Ltd. | | | 422,197 | |
| | 15,452 | | | | | Mitsui Fudosan Co., Ltd. | | | 286,160 | |
| | 8,700 | | | | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 250,060 | |
| | 105,124 | | | | | Mizuho Financial Group, Inc. | | | 202,419 | |
| | 8,000 | | | | | Murata Manufacturing Co., Ltd. | | | 473,429 | |
| | 3,800 | | | | | Nidec Corp. | | | 389,878 | |
| | 1,000 | | | | | Nintendo Co., Ltd. | | | 335,927 | |
| | 27,000 | | | | | Nippon Electric Glass Co., Ltd. | | | 411,732 | |
| | 124,000 | | | | | Nippon Steel Corp. | | | 439,935 | |
| | 10,900 | | | | | Nippon Telegraph & Telephone Corp. | | | 443,669 | |
| | 39,966 | | | | | Nishi-Nippon City Bank Ltd. | | | 115,017 | |
| | 50,700 | | | @ | | Nissan Motor Co., Ltd. | | | 441,149 | |
| | 31,000 | | | | | Nisshin Seifun Group, Inc. | | | 381,075 | |
| | 4,496 | | | @ | | NKSJ Holdings, Inc. | | | 32,642 | |
| | 27,800 | | | | | Nomura Holdings, Inc. | | | 192,157 | |
| | 251 | | | | | NTT DoCoMo, Inc. | | | 390,504 | |
| | 2,700 | | | | | Oriental Land Co., Ltd. | | | 191,198 | |
| | 1,410 | | | | | ORIX Corp. | | | 128,874 | |
| | 35,000 | | | | | Osaka Gas Co., Ltd. | | | 121,796 | |
| | 28,000 | | | | | Ricoh Co., Ltd. | | | 475,654 | |
| | 5,500 | | | | | Rohm Co., Ltd. | | | 407,605 | |
| | 8,600 | | | | | Sankyo Co., Ltd. | | | 396,972 | |
| | 27,400 | | | | | Sapporo Hokuyo Holdings, Inc. | | | 126,113 | |
| | 8,000 | | | | | Sekisui House Ltd. | | | 76,257 | |
| | 4,600 | | | | | Shinko Electric Industries | | | 81,674 | |
| | 15,700 | | | | | Sony Corp. | | | 537,552 | |
| | 46,300 | | | | | Sumitomo Corp. | | | 557,540 | |
| | 42,600 | | | | | Sumitomo Electric Industries Ltd. | | | 524,234 | |
| | 78,000 | | | | | Sumitomo Heavy Industries | | | 512,770 | |
| | 16,100 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 532,457 | |
| | 24,100 | | | | | Sumitomo Rubber Industries, Inc. | | | 215,422 | |
| | 32,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 193,522 | |
| | 2,500 | | | | | Sysmex Corp. | | | 149,979 | |
| | 15,751 | | | | | Takeda Pharmaceutical Co., Ltd. | | | 676,275 | |
| | 7,600 | | | | | Terumo Corp. | | | 387,185 | |
| | 11,449 | | | | | Tokio Marine Holdings, Inc. | | | 340,844 | |
| | 1,300 | | | | | Tokyo Electric Power Co., Inc. | | | 32,625 | |
| | 12,000 | | | | | Toppan Printing Co., Ltd. | | | 109,432 | |
| | 11,000 | | | | | Tosoh Corp. | | | 30,969 | |
| | 31,790 | | | | | Toyota Motor Corp. | | | 1,228,301 | |
| | 6,290 | | | | | USS Co., Ltd. | | | 430,756 | |
| | 24 | | | | | West Japan Railway Co. | | | 87,236 | |
| | 7,000 | | | | | Yamaguchi Financial Group, Inc. | | | 70,092 | |
| | 13,100 | | | | | Yamato Kogyo Co., Ltd. | | | 416,379 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 23,967,087 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Kazakhstan: 0.4% |
| | 24,970 | | | | | Eurasian Natural Resources Corp. | | | 462,950 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 462,950 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 5.6% |
| | 8,320 | | | @ | | Aegon NV | | | 58,190 | |
| | 6,152 | | | | | Fugro NV | | | 400,454 | |
| | 2,583 | | | | | Heineken NV | | | 120,440 | |
| | 36,323 | | | @ | | James Hardie Industries NV | | | 254,664 | |
| | 737 | | | | | Koninklijke DSM NV | | | 32,919 | |
| | 22,620 | | | | | Koninklijke Philips Electronics NV | | | 759,561 | |
| | 1,600 | | | | | Koninklijke Vopak NV | | | 131,234 | |
| | 9,256 | | | @ | | Randstad Holdings NV | | | 468,992 | |
| | 525 | | | | | Royal Dutch Shell PLC | | | 16,473 | |
| | 36,949 | | | | | Royal Dutch Shell PLC — Class A | | | 1,150,847 | |
| | 44,130 | | | | | Royal Dutch Shell PLC — Class B | | | 1,330,458 | |
| | 30,087 | | | | | Royal KPN NV | | | 451,395 | |
| | 31,784 | | | | | Unilever NV | | | 966,959 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,142,586 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.2% |
| | 139,502 | | | | | Telecom Corp. of New Zealand Ltd. | | | 218,161 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 218,161 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.3% |
| | 2,800 | | | | | DnB NOR ASA | | | 33,138 | |
| | 9,600 | | | | | Yara International ASA | | | 333,114 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 366,252 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 0.7% |
| | 82,419 | | | | | Energias de Portugal S.A. | | | 294,959 | |
| | 41,237 | | | | | Jeronimo Martins | | | 426,698 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 721,657 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 1.1% |
| | 28,000 | | | | | DBS Group Holdings Ltd. | | | 308,308 | |
| | 16,000 | | | | | Jardine Cycle & Carriage Ltd. | | | 351,794 | |
| | 11,000 | | | | | Oversea-Chinese Banking Corp. | | | 69,860 | |
| | 6,000 | | | | | Singapore Exchange Ltd. | | | 35,572 | |
| | 10,000 | | | | | Singapore Telecommunications Ltd. | | | 22,058 | |
| | 81,000 | | | | | StarHub Ltd. | | | 137,486 | |
| | 9,000 | | | | | United Overseas Bank Ltd. | | | 131,669 | |
| | 35,000 | | | | | United Overseas Land Ltd. | | | 97,152 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,153,899 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
118
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Spain: 3.7% |
| | 43,006 | | | | | Banco Bilbao Vizcaya Argentaria S.A. | | $ | 565,623 | |
| | 4,165 | | | | | Banco Popular Espanol S.A. | | | 29,491 | |
| | 94,962 | | | | | Banco Santander Central Hispano S.A. | | | 1,207,476 | |
| | 36,878 | | | | | Corp. Mapfre S.A. | | | 120,707 | |
| | 8,698 | | | | | Inditex S.A. | | | 538,348 | |
| | 7,223 | | | | | Red Electrica de Espana | | | 342,222 | |
| | 54,483 | | | | | Telefonica S.A. | | | 1,233,236 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,037,103 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 2.9% |
| | 12,419 | | | | | Atlas Copco AB — Class A | | | 199,748 | |
| | 28,616 | | | | | Atlas Copco AB — Class B | | | 414,556 | |
| | 4,190 | | | | | Getinge AB | | | 93,660 | |
| | 10,492 | | | | | Investor AB | | | 198,489 | |
| | 8,362 | | | | | Kinnevik Investment AB | | | 153,476 | |
| | 30,905 | | | | | Nordea Bank AB | | | 301,516 | |
| | 4,364 | | | | | Ratos AB | | | 136,568 | |
| | 35,764 | | | | | Svenska Cellulosa AB — B Shares | | | 466,002 | |
| | 2,269 | | | | | Svenska Handelsbanken AB | | | 63,626 | |
| | 20,980 | | | | | Swedish Match AB | | | 475,609 | |
| | 52,076 | | | | | Telefonaktiebolaget LM Ericsson | | | 600,985 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,104,235 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 8.1% |
| | 24,725 | | | @ | | ABB Ltd. | | | 474,263 | |
| | 17,108 | | | | | Compagnie Financiere Richemont S.A. | | | 631,011 | |
| | 14,176 | | | | | Credit Suisse Group | | | 650,647 | |
| | 8,076 | | | | | Holcim Ltd. | | | 601,812 | |
| | 28,880 | | | | | Nestle S.A. | | | 1,413,125 | |
| | 26,554 | | | | | Novartis AG | | | 1,353,849 | |
| | 8,786 | | | | | Roche Holding AG — Genusschein | | | 1,387,214 | |
| | 1,639 | | | | | Swatch Group AG — BR | | | 480,167 | |
| | 5,712 | | | | | Swiss Reinsurance | | | 247,721 | |
| | 2,121 | | | | | Synthes, Inc. | | | 240,673 | |
| | 31,929 | | | @ | | UBS AG — Reg | | | 494,650 | |
| | 23,241 | | | | | Xstrata PLC | | | 381,244 | |
| | 1,957 | | | | | Zurich Financial Services AG | | | 433,857 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,790,233 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 17.8% |
| | 12,427 | | | @ | | Anglo American PLC | | | 527,848 | |
| | 18,453 | | | | | AstraZeneca PLC | | | 815,380 | |
| | 3,953 | | | @ | | Autonomy Corp. PLC | | | 108,436 | |
| | 46,057 | | | | | Aviva PLC | | | 243,475 | |
| | 31,832 | | | | | BAE Systems PLC | | | 166,839 | |
| | 140,509 | | | | | Barclays PLC | | | 721,772 | |
| | 44,777 | | | | | BG Group PLC | | | 756,852 | |
| | 12,626 | | | | | BHP Billiton PLC | | | 385,479 | |
| | 167,983 | | | | | BP PLC | | | 1,465,140 | |
| | 34,121 | | | | | British American Tobacco PLC | | | 1,072,927 | |
| | 47,995 | | | | | Compass Group PLC | | | 390,334 | |
| | 32,143 | | | | | Diageo PLC | | | 548,205 | |
| | 1,817 | | | @ | | EnQuest PLC | | | 2,744 | |
| | 10,973 | | | | | Firstgroup PLC | | | 63,766 | |
| | 46,676 | | | | | GlaxoSmithKline PLC | | | 866,356 | |
| | 6,012 | | | | | Group 4 Securicor PLC | | | 24,472 | |
| | 197,245 | | | | | HSBC Holdings PLC | | | 2,008,439 | |
| | 20,364 | | | | | ICAP PLC | | | 117,489 | |
| | 19,325 | | | | | Imperial Tobacco Group PLC | | | 550,533 | |
| | 24,292 | | | | | Inmarsat PLC | | | 282,649 | |
| | 63,813 | | | | | International Power PLC | | | 323,003 | |
| | 23,873 | | | | | Invensys PLC | | | 122,947 | |
| | 16,144 | | | | | Investec PLC | | | 127,685 | |
| | 19,699 | | | | | J Sainsbury PLC | | | 101,519 | |
| | 16,017 | | | | | Kazakhmys PLC | | | 339,333 | |
| | 74,682 | | | | | Kingfisher PLC | | | 284,621 | |
| | 317,084 | | | @ | | Lloyds TSB Group PLC | | | 317,242 | |
| | 10,552 | | | | | London Stock Exchange Group PLC | | | 109,775 | |
| | 45,750 | | | | | Man Group PLC | | | 168,897 | |
| | 58,595 | | | | | National Grid PLC | | | 565,030 | |
| | 105,326 | | | @ | | Old Mutual PLC | | | 185,888 | |
| | 33,667 | | | | | Pearson PLC | | | 538,033 | |
| | 8,605 | | | | | Petrofac Ltd. | | | 148,825 | |
| | 17,704 | | | | | Prudential PLC | | | 155,431 | |
| | 14,229 | | | | | Reckitt Benckiser PLC | | | 739,170 | |
| | 15,454 | | | | | Rio Tinto PLC | | | 798,982 | |
| | 6,145,830 | | | @ | | Rolls-Royce Group PLC — C Shares | | | 9,403 | |
| | 63,287 | | | | | Rolls-Royce Group PLC | | | 557,653 | |
| | 17,127 | | | | | Royal & Sun Alliance Insurance Group | | | 31,700 | |
| | 35,885 | | | @ | | Royal Bank of Scotland Group PLC | | | 29,365 | |
| | 3,394 | | | | | Shire PLC | | | 74,764 | |
| | 20,899 | | | | | Smith & Nephew PLC | | | 216,673 | |
| | 24,683 | | | | | Standard Chartered PLC | | | 658,409 | |
| | 10,166 | | | | | Standard Life PLC | | | 30,928 | |
| | 26,641 | | | | | Tesco PLC | | | 176,703 | |
| | 20,909 | | | | | Tomkins PLC | | | 79,101 | |
| | 696 | | | | | Unilever PLC | | | 20,915 | |
| | 557,113 | | | | | Vodafone Group PLC | | | 1,234,486 | |
| | 1,520 | | | | | Whitbread PLC | | | 35,521 | |
| | 3,735 | | | | | WPP PLC | | | 39,600 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,340,737 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $97,738,483) | | | 105,276,763 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 1.3% |
| | | | | | | |
| | | | | | | Australia: 0.4% |
| | 79,151 | | | | | CFS Retail Property Trust | | | 139,568 | |
| | 104,611 | | | | | Mirvac Group | | | 134,240 | |
| | 18,646 | | | | | Westfield Group | | | 220,236 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 494,044 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 0.3% |
| | 1,285 | | | @ | | Fonciere Des Regions | | | 132,970 | |
| | 1,199 | | | | | Gecina S.A. | | | 123,270 | |
| | 439 | | | | | Unibail | | | 82,971 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 339,211 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.1% |
| | 29,000 | | | | | Link Real Estate Investment Trust | | | 71,145 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 71,145 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 0.3% |
| | 59 | | | | | Japan Prime Realty Investment Corp. | | | 140,623 | |
| | 109 | | | | | Japan Retail Fund Investment Corp. | | | 146,702 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 287,325 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.2% |
| | 83,000 | | | | | Ascendas Real Estate Investment Trust | | | 115,880 | |
| | 72,000 | | | | | CapitaMall Trust | | | 101,558 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 217,438 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.0% |
| | 6,132 | | | | | Segro PLC | | | 28,945 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 28,945 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $1,314,043) | | | 1,438,108 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 0.2% |
| | | | | | | |
| | | | | | | Germany: 0.2% |
| | 1,126 | | | | | Henkel KGaA — Vorzug | | | 60,373 | |
| | 1,567 | | | | | RWE AG | | | 120,023 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $182,648) | | | 180,396 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
119
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
RIGHTS: 0.0% |
| | | | | | | |
| | | | | | | Australia: 0.0% |
| | 6,055 | | | | | Nufarm Ltd. | | $ | 10,625 | |
| | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $—) | | | 10,625 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $99,235,174)* | | | 98.3 | % | | $ | 106,905,892 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.7 | | | | 1,874,876 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 108,780,768 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| | | |
| * | | Cost for federal income tax purposes is $103,854,870. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 11,364,236 | |
| Gross Unrealized Depreciation | | | (8,313,214 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 3,051,022 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 0.7 | % |
| Agriculture | | | 2.1 | |
| Auto Manufacturers | | | 2.3 | |
| Auto Parts & Equipment | | | 2.1 | |
| Banks | | | 15.7 | |
| Beverages | | | 1.3 | |
| Biotechnology | | | 0.2 | |
| Building Materials | | | 2.4 | |
| Chemicals | | | 2.1 | |
| Commercial Services | | | 1.0 | |
| Computers | | | 0.1 | |
| Cosmetics/Personal Care | | | 0.2 | |
| Distribution/Wholesale | | | 1.7 | |
| Diversified | | | 0.6 | |
| Diversified Financial Services | | | 1.2 | |
| Electric | | | 5.1 | |
| Electrical Components & Equipment | | | 0.6 | |
| Electronics | | | 2.2 | |
| Engineering & Construction | | | 0.7 | |
| Entertainment | | | 0.5 | |
| Food | | | 4.9 | |
| Food Service | | | 0.4 | |
| Forest Products & Paper | | | 0.4 | |
| Gas | | | 0.3 | |
| Hand/Machine Tools | | | 0.2 | |
| Healthcare — Products | | | 1.0 | |
| Holding Companies — Diversified | | | 0.9 | |
| Home Builders | | | 0.1 | |
| Home Furnishings | | | 0.5 | |
| Household Products/Wares | | | 0.8 | |
| Insurance | | | 4.0 | |
| Internet | | | 0.2 | |
| Investment Companies | | | 0.7 | |
| Iron/Steel | | | 1.5 | |
| Lodging | | | 0.3 | |
| Machinery — Construction & Mining | | | 0.6 | |
| Machinery — Diversified | | | 0.5 | |
| Media | | | 1.5 | |
| Metal Fabricate/Hardware | | | 0.4 | |
| Mining | | | 4.3 | |
| Miscellaneous Manufacturing | | | 1.7 | |
| Office Property | | | 0.1 | |
| Office/Business Equipment | | | 1.1 | |
| Oil & Gas | | | 6.8 | |
| Oil & Gas Services | | | 1.2 | |
| Pharmaceuticals | | | 6.3 | |
| Real Estate | | | 1.4 | |
| Retail | | | 2.7 | |
| Semiconductors | | | 0.6 | |
| Shopping Centers | | | 0.6 | |
| Software | | | 0.7 | |
| Telecommunications | | | 6.2 | |
| Textiles | | | 0.1 | |
| Toys/Games/Hobbies | | | 0.3 | |
| Transportation | | | 2.2 | |
| Other Assets and Liabilities — Net | | | 1.7 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | | | | | |
| | | in Active
| | Significant
| | | | |
| | | Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 8,820,251 | | | $ | — | | | $ | 8,820,251 | |
| Austria | | | — | | | | 152,721 | | | | — | | | | 152,721 | |
| Belgium | | | 162 | | | | 1,329,631 | | | | — | | | | 1,329,793 | |
| Denmark | | | — | | | | 818,457 | | | | — | | | | 818,457 | |
| Finland | | | — | | | | 1,457,335 | | | | — | | | | 1,457,335 | |
| France | | | — | | | | 8,664,747 | | | | — | | | | 8,664,747 | |
| Germany | | | 594,362 | | | | 7,341,150 | | | | — | | | | 7,935,512 | |
| Greece | | | — | | | | 545,713 | | | | — | | | | 545,713 | |
| Hong Kong | | | — | | | | 2,470,915 | | | | — | | | | 2,470,915 | |
| Italy | | | — | | | | 4,776,419 | | | | — | | | | 4,776,419 | |
| Japan | | | 698,853 | | | | 23,268,234 | | | | — | | | | 23,967,087 | |
| Kazakhstan | | | — | | | | 462,950 | | | | — | | | | 462,950 | |
| Netherlands | | | — | | | | 6,142,586 | | | | — | | | | 6,142,586 | |
| New Zealand | | | — | | | | 218,161 | | | | — | | | | 218,161 | |
| Norway | | | — | | | | 366,252 | | | | — | | | | 366,252 | |
| Portugal | | | — | | | | 721,657 | | | | — | | | | 721,657 | |
| Singapore | | | — | | | | 1,153,899 | | | | — | | | | 1,153,899 | |
| Spain | | | 1,207,476 | | | | 2,829,627 | | | | — | | | | 4,037,103 | |
| Sweden | | | — | | | | 3,104,235 | | | | — | | | | 3,104,235 | |
| Switzerland | | | — | | | | 8,790,233 | | | | — | | | | 8,790,233 | |
| United Kingdom | | | 2,810,165 | | | | 16,530,572 | | | | — | | | | 19,340,737 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 5,311,018 | | | | 99,965,745 | | | | — | | | | 105,276,763 | |
| | | | | | | | | | | | | | | | | |
| Real Estate Investment Trusts | | | — | | | | 1,438,108 | | | | — | | | | 1,438,108 | |
| Preferred Stock | | | — | | | | 180,396 | | | | — | | | | 180,396 | |
| Rights | | | — | | | | 10,625 | | | | — | | | | 10,625 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 5,311,018 | | | $ | 101,594,874 | | | $ | — | | | $ | 106,905,892 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| # | 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
120
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 93.2% |
| | | | | | | |
| | | | | | | Australia: 6.3% |
| | 47,033 | | | | | BHP Billiton Ltd. | | $ | 1,719,350 | |
| | 48,437 | | | | | CSL Ltd. | | | 1,447,365 | |
| | 25,397 | | | | | Macquarie Group Ltd. | | | 1,158,104 | |
| | 30,100 | | | | | Rio Tinto Ltd. | | | 1,966,738 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,291,557 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 1.3% |
| | 25,690 | | | | | Anheuser-Busch InBev NV | | | 1,246,262 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,246,262 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 4.8% |
| | 72,547 | | | | | Banco Itau Holding Financeira S.A. ADR | | | 1,572,819 | |
| | 27,857 | | | | | Petroleo Brasileiro SA ADR | | | 1,181,973 | |
| | 65,481 | | | | | Vale S.A. ADR | | | 2,005,683 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,760,475 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 5.1% |
| | 57,265 | | | | | Cameco Corp. | | | 1,409,292 | |
| | 81,911 | | | | | Manulife Financial Corp. | | | 1,473,579 | |
| | 24,306 | | | | | Shoppers Drug Mart Corp. | | | 840,110 | |
| | 39,470 | | | | | Suncor Energy, Inc. | | | 1,348,690 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,071,671 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Chile: 0.9% |
| | 26,259 | | | | | Sociedad Quimica y Minera de Chile SA ADR | | | 945,324 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 945,324 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 6.8% |
| | 1,060,000 | | | L | | China Communications Construction Co., Ltd. | | | 999,440 | |
| | 413,500 | | | | | China Merchants Bank Co., Ltd. | | | 1,013,680 | |
| | 1,365,000 | | | | | Industrial and Commercial Bank of China Ltd. | | | 994,877 | |
| | 16,131 | | | @,L | | New Oriental Education & Technology Group ADR | | | 1,509,378 | |
| | 844,000 | | | | | PetroChina Co., Ltd. | | | 971,921 | |
| | 64,100 | | | | | Tencent Holdings Ltd. | | | 1,325,596 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,814,892 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 2.8% |
| | 14,761 | | | | | Novo-Nordisk A/S | | | 1,214,504 | |
| | 26,276 | | | @ | | Vestas Wind Systems A/S | | | 1,603,298 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,817,802 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 7.0% |
| | 66,819 | | | | | AXA S.A. | | | 1,327,856 | |
| | 22,122 | | | | | BNP Paribas | | | 1,519,477 | |
| | 32,323 | | | | | Electricite de France | | | 1,732,315 | |
| | 15,195 | | | L | | Iliad S.A. | | | 1,519,278 | |
| | 17,283 | | | | | Total SA ADR | | | 939,850 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,038,776 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 5.4% |
| | 27,136 | | | | | Adidas AG | | | 1,598,994 | |
| | 15,093 | | | | | Aixtron AG | | | 476,819 | |
| | 16,213 | | | | | Deutsche Boerse AG | | | 1,258,656 | |
| | 10,927 | | | L | | SAP AG ADR | | | 518,486 | |
| | 10,641 | | | | | Wacker Chemie AG | | | 1,554,356 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,407,311 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 4.8% |
| | 1,268,000 | | | L | | Agile Property Holdings Ltd. | | | 1,469,083 | |
| | 234,315 | | | | | Esprit Holdings Ltd. | | | 1,678,453 | |
| | 338,425 | | | | | Li & Fung Ltd. | | | 1,631,529 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,779,065 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 1.8% |
| | 11,988 | | | | | HDFC Bank Ltd. ADR | | | 1,787,651 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,787,651 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 1.3% |
| | 21,384 | | | | | Teva Pharmaceutical Industries Ltd. ADR | | | 1,255,882 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,255,882 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 1.2% |
| | 31,910 | | | | | Saipem S.p.A. | | | 1,191,564 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,191,564 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 10.9% |
| | 29,300 | | | | | Canon, Inc. | | | 1,340,279 | |
| | 14,800 | | | | | Fanuc Ltd. | | | 1,747,671 | |
| | 7,600 | | | | | Fast Retailing Co., Ltd. | | | 1,151,644 | |
| | 185 | | | | | Jupiter Telecommunications Co. | | | 187,259 | |
| | 61,000 | | | | | NGK Insulators Ltd. | | | 1,202,186 | |
| | 19,400 | | | | | Shin-Etsu Chemical Co., Ltd. | | | 1,118,324 | |
| | 431 | | | | | Sony Financial Holdings, Inc. | | | 1,554,369 | |
| | 32,300 | | | | | Toyota Motor Corp. | | | 1,248,006 | |
| | 17,760 | | | | | Yamada Denki Co., Ltd. | | | 1,388,721 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,938,459 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 1.8% |
| | 20,390 | | | | | Millicom International Cellular S.A. | | | 1,800,029 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,800,029 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.1% |
| | 49,314 | | | | | Wal-Mart de Mexico SA de CV ADR | | | 1,144,731 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,144,731 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 1.1% |
| | 46,110 | | | | | OAO Gazprom ADR | | | 1,070,674 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,070,674 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 1.0% |
| | 66,795 | | | | | MTN Group Ltd. | | | 982,625 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 982,625 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 2.0% |
| | 5,237 | | | @ | | Samsung Electronics Co., Ltd. GDR | | | 2,005,780 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,005,780 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 2.0% |
| | 79,265 | | | | | Banco Santander Central Hispano S.A. | | | 1,007,883 | |
| | 44,362 | | | | | Telefonica S.A. | | | 1,004,145 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,012,028 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.3% |
| | 82,113 | | | L | | Atlas Copco AB — Class A | | | 1,320,713 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,320,713 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 7.0% |
| | 53,410 | | | @ | | ABB Ltd. | | | 1,024,484 | |
| | 23,286 | | | | | Credit Suisse Group | | | 1,068,776 | |
| | 74,752 | | | @,L | | Logitech International S.A. | | | 1,224,438 | |
| | 23,480 | | | | | Nestle S.A. | | | 1,148,898 | |
| | 21,521 | | | | | Novartis AG | | | 1,097,243 | |
| | 9,193 | | | | | Roche Holding AG — Genusschein | | | 1,451,475 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,015,314 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 15.5% |
| | 480,878 | | | | | ARM Holdings PLC | | | 1,854,762 | |
| | 90,063 | | | @ | | Autonomy Corp. PLC | | | 2,470,551 | |
| | 67,473 | | | | | BG Group PLC | | | 1,140,476 | |
| | 148,720 | | | | | British Sky Broadcasting PLC | | | 1,392,095 | |
| | 193,882 | | | | | ICAP PLC | | | 1,118,594 | |
| | 174,575 | | | | | Prudential PLC | | | 1,532,670 | |
See Accompanying Notes to Financial Statements
121
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 109,827 | | | | | Smith & Nephew PLC | | $ | 1,138,646 | |
| | 47,966 | | | | | Standard Chartered PLC | | | 1,279,474 | |
| | 206,960 | | | | | Tesco PLC | | | 1,372,711 | |
| | 57,234 | | | L | | Vedanta Resources PLC | | | 2,187,851 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,487,830 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $79,416,208) | | | 93,186,415 | |
| | | | | | | | | | | |
| |
EXCHANGE-TRADED FUNDS: 0.5% |
| | | | | | | |
| | | | | | | Developed Markets: 0.4% |
| | 6,577 | | | | | iShares MSCI EAFE Index Fund | | | 357,986 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 357,986 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 0.1% |
| | 2,757 | | | | | Vanguard Emerging Markets ETF | | | 115,959 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 115,959 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Exchange-Traded Funds
(Cost $481,812) | | | 473,945 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $79,898,020) | | | 93,660,360 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 9.3% |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 9.3% |
| | 9,225,554 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | | 9,225,554 | |
| | 79,764 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 63,811 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $9,305,318) | | | 9,289,365 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $89,203,338)* | | | 103.0 | % | | $ | 102,949,725 | |
| | | | | Other Assets and
Liabilities - Net | | | (3.0 | ) | | | (2,954,532 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 99,995,193 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| | | |
| * | | Cost for federal income tax purposes is $93,972,692. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 15,134,896 | |
| Gross Unrealized Depreciation | | | (6,157,863 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 8,977,033 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Apparel | | | 1.6 | % |
| Auto Manufacturers | | | 1.3 | |
| Banks | | | 10.3 | |
| Beverages | | | 1.3 | |
| Biotechnology | | | 1.5 | |
| Chemicals | | | 3.6 | |
| Commercial Services | | | 1.5 | |
| Computers | | | 1.2 | |
| Distribution/Wholesale | | | 1.6 | |
| Diversified Financial Services | | | 3.5 | |
| Electric | | | 1.7 | |
| Electrical Components & Equipment | | | 1.6 | |
| Electronics | | | 1.2 | |
| Engineering & Construction | | | 2.0 | |
| Food | | | 2.5 | |
| Healthcare — Products | | | 1.1 | |
| Insurance | | | 5.9 | |
| Internet | | | 2.8 | |
| Machinery — Construction & Mining | | | 1.3 | |
| Machinery — Diversified | | | 1.8 | |
| Media | | | 1.6 | |
| Mining | | | 9.3 | |
| Office/Business Equipment | | | 1.3 | |
| Oil & Gas | | | 6.7 | |
| Oil & Gas Services | | | 1.2 | |
| Pharmaceuticals | | | 5.0 | |
| Real Estate | | | 1.5 | |
| Retail | | | 6.2 | |
| Semiconductors | | | 4.3 | |
| Software | | | 3.0 | |
| Telecommunications | | | 3.8 | |
| Other Long-Term Investments | | | 0.5 | |
| Short-Term Investments | | | 9.3 | |
| Other Assets and Liabilities — Net | | | (3.0 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
122
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of April 30, 2010 (Unaudited) (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 6,291,557 | | | $ | — | | | $ | 6,291,557 | |
| Belgium | | | — | | | | 1,246,262 | | | | — | | | | 1,246,262 | |
| Brazil | | | 3,187,656 | | | | 1,572,819 | | | | — | | | | 4,760,475 | |
| Canada | | | 5,071,671 | | | | — | | | | — | | | | 5,071,671 | |
| Chile | | | — | | | | 945,324 | | | | — | | | | 945,324 | |
| China | | | 1,509,378 | | | | 5,305,514 | | | | — | | | | 6,814,892 | |
| Denmark | | | — | | | | 2,817,802 | | | | — | | | | 2,817,802 | |
| France | | | 939,850 | | | | 6,098,926 | | | | — | | | | 7,038,776 | |
| Germany | | | 518,486 | | | | 4,888,825 | | | | — | | | | 5,407,311 | |
| Hong Kong | | | — | | | | 4,779,065 | | | | — | | | | 4,779,065 | |
| India | | | 1,787,651 | | | | — | | | | — | | | | 1,787,651 | |
| Israel | | | 1,255,882 | | | | — | | | | — | | | | 1,255,882 | |
| Italy | | | — | | | | 1,191,564 | | | | — | | | | 1,191,564 | |
| Japan | | | — | | | | 10,938,459 | | | | — | | | | 10,938,459 | |
| Luxembourg | | | 1,800,029 | | | | — | | | | — | | | | 1,800,029 | |
| Mexico | | | 1,144,731 | | | | — | | | | — | | | | 1,144,731 | |
| Russia | | | 1,070,674 | | | | — | | | | — | | | | 1,070,674 | |
| South Africa | | | — | | | | 982,625 | | | | — | | | | 982,625 | |
| South Korea | | | 2,005,780 | | | | — | | | | — | | | | 2,005,780 | |
| Spain | | | 1,007,883 | | | | 1,004,145 | | | | — | | | | 2,012,028 | |
| Sweden | | | — | | | | 1,320,713 | | | | — | | | | 1,320,713 | |
| Switzerland | | | 1,224,438 | | | | 5,790,876 | | | | — | | | | 7,015,314 | |
| United Kingdom | | | — | | | | 15,487,830 | | | | — | | | | 15,487,830 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 22,524,109 | | | | 70,662,306 | | | | — | | | | 93,186,415 | |
| | | | | | | | | | | | | | | | | |
| Exchange-Traded Funds | | | 473,945 | | | | — | | | | — | | | | 473,945 | |
| Short-Term Investments | | | 9,225,554 | | | | — | | | | 63,811 | | | | 9,289,365 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 32,223,608 | | | $ | 70,662,306 | | | $ | 63,811 | | | $ | 102,949,725 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 63,811 | | | $ | — | | | $ | 63,811 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 63,811 | | | $ | — | | | $ | 63,811 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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.
| |
| ˆ | 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 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
123
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 54.8% |
| | | | | | | |
| | | | | | | Australia: 1.0% |
| | 676,100 | | | | | Lend Lease Corp. Ltd. | | $ | 5,321,548 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,321,548 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 1.1% |
| | 372,150 | | | | | Brookfield Properties Co. | | | 5,946,957 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,946,957 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 24.2% |
| | 2,172,965 | | | | | Cheung Kong Holdings Ltd. | | | 26,796,682 | |
| | 1,324,700 | | | | | Great Eagle Holding Co. | | | 3,707,012 | |
| | 1,130,700 | | | | | Hang Lung Group Ltd. | | | 5,523,784 | |
| | 2,089,900 | | | | | Hang Lung Properties Ltd. | | | 7,517,948 | |
| | 570,500 | | | | | Henderson Land Development Co., Ltd. | | | 3,595,790 | |
| | 2,228,100 | | | | | Hongkong Land Holdings Ltd. | | | 11,786,609 | |
| | 544,100 | | | | | Hysan Development Co., Ltd. | | | 1,596,358 | |
| | 1,368,000 | | | | | Kerry Properties Ltd. | | | 6,310,490 | |
| | 3,364,700 | | | | | Sun Hung Kai Properties Ltd. | | | 46,648,361 | |
| | 1,980,550 | | | | | Wharf Holdings Ltd. | | | 10,711,430 | |
| | 1,244,000 | | | | | Wheelock & Co., Ltd. | | | 3,872,567 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 128,067,031 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 0.1% |
| | 382,800 | | | | | Unitech Ltd. (Global Instrument, Issuer: Macquarie Group Ltd.) | | | 733,499 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 733,499 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 18.7% |
| | 53,300 | | | | | Daito Trust Construction Co., Ltd. | | | 2,841,240 | |
| | 477,400 | | | | | Daiwa House Industry Co., Ltd. | | | 5,136,688 | |
| | 2,159,800 | | | | | Mitsubishi Estate Co., Ltd. | | | 38,935,767 | |
| | 1,772,077 | | | | | Mitsui Fudosan Co., Ltd. | | | 32,817,574 | |
| | 950,500 | | | | | Sumitomo Realty & Development Co., Ltd. | | | 19,503,243 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 99,234,512 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 1.1% |
| | 2,861,410 | | | @ | | Norwegian Property ASA | | | 5,662,146 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,662,146 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Philippines: 0.4% |
| | 6,727,200 | | | | | Ayala Land, Inc. | | | 2,048,019 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,048,019 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 2.4% |
| | 2,529,600 | | | | | CapitaLand Ltd. | | | 6,833,018 | |
| | 739,800 | | | | | City Developments Ltd. | | | 5,683,551 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,516,569 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.4% |
| | 333,277 | | | | | Castellum AB | | | 3,017,117 | |
| | 261,120 | | | | | Fabege AB | | | 1,621,397 | |
| | 361,133 | | | | | Hufvudstaden AB | | | 2,755,015 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,393,529 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 0.8% |
| | 68,850 | | | @ | | Swiss Prime Site AG | | | 4,071,338 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,071,338 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.2% |
| | 1,729,900 | | | I | | Central Pattana PCL | | | 1,045,148 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,045,148 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 3.4% |
| | 683,000 | | | I | | Atrium European Real Estate Ltd. | | | 4,055,733 | |
| | 1,229,740 | | | | | Grainger PLC | | | 2,609,831 | |
| | 311,440 | | | | | Helical Bar PLC | | | 1,595,044 | |
| | 4,875,400 | | | @,I | | LXB Retail Properties PLC | | | 6,734,754 | |
| | 1,151,100 | | | | | Safestore Holdings Ltd. | | | 2,380,206 | |
| | 70,700 | | | @,I | | Yatra Capital Ltd. | | | 384,438 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 17,760,006 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $269,194,444) | | | 289,800,302 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 42.1% |
| | | | | | | |
| | | | | | | Australia: 14.5% |
| | 1,793,600 | | | | | CFS Retail Property Trust | | | 3,162,688 | |
| | 3,438,700 | | | | | Challenger Diversified Property Group | | | 1,757,150 | |
| | 1,671,340 | | | | | Charter Hall Group | | | 1,167,646 | |
| | 4,130,009 | | | | | Commonwealth Property Office Fund | | | 3,520,583 | |
| | 12,583,957 | | | | | Dexus Property Group | | | 9,333,318 | |
| | 13,814,700 | | | | | GPT Group | | | 7,381,667 | |
| | 17,772,122 | | | | | Macquarie Goodman Group | | | 11,553,384 | |
| | 3,657,117 | | | | | Mirvac Group | | | 4,692,935 | |
| | 2,532,800 | | | | | Stockland | | | 9,232,783 | |
| | 2,135,379 | | | | | Westfield Group | | | 25,221,839 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 77,023,993 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 2.2% |
| | 75,700 | | | | | Calloway Real Estate Investment Trust | | | 1,598,509 | |
| | 62,500 | | | | | Canadian Real Estate Investment Trust | | | 1,762,773 | |
| | 174,700 | | | | | Cominar Real Estate Investment Trust | | | 3,303,787 | |
| | 276,800 | | | | | RioCan Real Estate Investment Trust | | | 5,286,395 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,951,464 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 6.0% |
| | 228,983 | | | | | Klepierre | | | 7,890,850 | |
| | 117,732 | | | | | Mercialys | | | 3,951,687 | |
| | 17,300 | | | | | Societe Immobiliere de Location pour l’Industrie et le Commerce | | | 2,038,167 | |
| | 93,722 | | | | | Unibail | | | 17,713,512 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 31,594,216 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 1.0% |
| | 2,130,400 | | | | | Link Real Estate Investment Trust | | | 5,226,431 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,226,431 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 5.5% |
| | 460 | | | | | Frontier Real Estate Investment Corp. | | | 3,540,000 | |
| | 338 | | | | | Japan Logistics Fund, Inc. | | | 2,703,364 | |
| | 525 | | | | | Japan Real Estate Investment Corp. | | | 4,378,339 | |
| | 1,880 | | | | | Japan Retail Fund Investment Corp. | | | 2,530,281 | |
| | 1,224 | | | | | Kenedix Realty Investment Corp. | | | 4,018,008 | |
| | 171 | | | | | Nippon Accommodations Fund, Inc. | | | 893,371 | |
| | 357 | | | | | Nomura Real Estate Office Fund, Inc. | | | 2,009,921 | |
| | 602 | | | | | Orix JREIT, Inc. | | | 2,945,520 | |
| | 524 | | | | | Tokyu Real Estate Investment Trust, Inc. | | | 2,753,098 | |
| | 484 | | | | | United Urban Investment Corp. | | | 3,148,730 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 28,920,632 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 1.2% |
| | 93,207 | | | | | Corio NV | | | 5,392,273 | |
| | 14,980 | | | | | Vastned Retail NV | | | 868,765 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,261,038 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
124
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Singapore: 3.2% |
| | 5,258,453 | | | | | Ascendas Real Estate Investment Trust | | $ | 7,341,534 | |
| | 3,269,000 | | | | | CapitaCommercial Trust | | | 2,858,799 | |
| | 2,978,883 | | | | | CapitaMall Trust | | | 4,201,812 | |
| | 1,513,700 | | | | | Frasers Centrepoint Trust | | | 1,475,391 | |
| | 1,014,400 | | | | | Suntec Real Estate Investment Trust | | | 1,020,900 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,898,436 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 8.5% |
| | 1,432,832 | | | | | British Land Co. PLC | | | 10,175,036 | |
| | 311,860 | | | | | Derwent Valley Holdings PLC | | | 6,872,493 | |
| | 666,310 | | | | | Great Portland Estates PLC | | | 3,189,617 | |
| | 705,408 | | | | | Hammerson PLC | | | 4,117,790 | |
| | 1,913,925 | | | | | Hansteen Holdings PLC | | | 2,201,425 | |
| | 1,524,711 | | | | | Land Securities Group PLC | | | 15,247,882 | |
| | 701,224 | | | | | Segro PLC | | | 3,309,993 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 45,114,236 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $193,909,826) | | | 222,990,446 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 1.3% |
| | | | | | | |
| | | | | | | Australia: 1.2% |
| | 11,717,400 | | | ** | | ING Office Fund | | | 6,576,188 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,576,188 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.1% |
| | 70,064 | | | @ | | Prologis European Properties | | | 442,855 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 442,855 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $6,777,014) | | | 7,019,043 | |
| | | | | | | | | | | |
| |
WARRANTS: 0.0% |
| | | | | | | |
| | | | | | | Hong Kong: 0.0% |
| | 248,360 | | | | | Henderson Land Development Co., Ltd. | | | 86,028 | |
| | | | | | | | | | | |
| | | | | | | Total Warrants
(Cost $—) | | | 86,028 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $469,881,284)* | | | 98.2 | % | | $ | 519,895,819 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.8 | | | | 9,555,760 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 529,451,579 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| I | | Illiquid security |
| ** | | Investment in affiliate |
| | | |
| * | | Cost for federal income tax purposes is $540,734,180. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 67,066,761 | |
| Gross Unrealized Depreciation | | | (87,905,122 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (20,838,361 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Apartments | | | 0.2 | % |
| Closed-End Funds | | | 0.1 | |
| Diversified | | | 27.1 | |
| Engineering & Construction | | | 0.1 | |
| Holding Companies — Diversified | | | 2.0 | |
| Home Builders | | | 1.0 | |
| Lodging | | | 1.1 | |
| Office Property | | | 3.9 | |
| Open-End Funds | | | 1.2 | |
| Real Estate | | | 50.1 | |
| Shopping Centers | | | 10.0 | |
| Storage/Warehousing | | | 0.5 | |
| Warehouse/Industrial | | | 0.9 | |
| Other Assets and Liabilities — Net | | | 1.8 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 5,321,548 | | | $ | — | | | $ | 5,321,548 | |
| Canada | | | 5,946,957 | | | | — | | | | — | | | | 5,946,957 | |
| Hong Kong | | | — | | | | 128,067,031 | | | | — | | | | 128,067,031 | |
| India | | | — | | | | 733,499 | | | | — | | | | 733,499 | |
| Japan | | | 19,503,243 | | | | 79,731,269 | | | | — | | | | 99,234,512 | |
| Norway | | | — | | | | 5,662,146 | | | | — | | | | 5,662,146 | |
| Philippines | | | — | | | | 2,048,019 | | | | — | | | | 2,048,019 | |
| Singapore | | | — | | | | 12,516,569 | | | | — | | | | 12,516,569 | |
| Sweden | | | — | | | | 7,393,529 | | | | — | | | | 7,393,529 | |
| Switzerland | | | — | | | | 4,071,338 | | | | — | | | | 4,071,338 | |
| Thailand | | | — | | | | 1,045,148 | | | | — | | | | 1,045,148 | |
| United Kingdom | | | — | | | | 17,760,006 | | | | — | | | | 17,760,006 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 25,450,200 | | | | 264,350,102 | | | | — | | | | 289,800,302 | |
| | | | | | | | | | | | | | | | | |
| Real Estate Investment Trusts | | | 11,951,464 | | | | 211,038,982 | | | | — | | | | 222,990,446 | |
| Mutual Funds | | | — | | | | 7,019,043 | | | | — | | | | 7,019,043 | |
| Warrants | | | — | | | | 86,028 | | | | — | | | | 86,028 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 37,401,664 | | | $ | 482,494,155 | | | $ | — | | | $ | 519,895,819 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| # | 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
125
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 97.4% |
| | | | | | | |
| | | | | | | Australia: 5.1% |
| | 68,400 | | | @ | | Aditya Birla Minerals Ltd. | | $ | 66,780 | |
| | 360,017 | | | | | Amcor Ltd. | | | 2,178,741 | |
| | 154,933 | | | | | Ansell Ltd. | | | 1,827,637 | |
| | 100,000 | | | | | Aquarius Platinum Ltd. | | | 657,076 | |
| | 51,313 | | | | | Ausdrill Ltd. | | | 97,377 | |
| | 425,481 | | | | | Australian Pharmaceutical Industries Ltd. | | | 218,315 | |
| | 70,065 | | | @ | | Australian Worldwide Exploration Ltd. | | | 158,347 | |
| | 53,251 | | | | | Automotive Holdings Group | | | 133,352 | |
| | 29,323 | | | @ | | Avoca Resources Ltd. | | | 59,374 | |
| | 89,000 | | | | | Beach Petroleum Ltd. | | | 64,038 | |
| | 182,960 | | | | | Caltex Australia Ltd. | | | 1,952,657 | |
| | 301,821 | | | @ | | Cape Lambert Resources Ltd. | | | 126,575 | |
| | 306,853 | | | | | Centennial Coal Co., Ltd. | | | 1,194,165 | |
| | 173,289 | | | | | Computershare Ltd. | | | 1,881,863 | |
| | 194,484 | | | | | Crane Group Ltd. | | | 1,616,889 | |
| | 3,549 | | | | | CSG Ltd. | | | 7,441 | |
| | 166,150 | | | | | Emeco Holdings Ltd. | | | 104,653 | |
| | 17,482 | | | @,I | | Felix Resources Ltd. | | | 1,634 | |
| | 303,111 | | | @ | | Futuris Corp. Ltd. | | | 332,357 | |
| | 76,387 | | | @ | | Gujarat NRE Minerals Ltd. | | | 49,366 | |
| | 710,655 | | | | | Hillgrove Resources Ltd. | | | 243,015 | |
| | 536,494 | | | @ | | Iluka Resources Ltd. | | | 2,284,522 | |
| | 1,072,700 | | | | | John Fairfax Holdings Ltd. | | | 1,692,933 | |
| | 55,890 | | | | | Melbourne IT Ltd. | | | 93,293 | |
| | 145,270 | | | | | New Hope Corp. Ltd. | | | 659,861 | |
| | 63,778 | | | | | NIB Holdings Ltd/Australia | | | 74,462 | |
| | 46,000 | | | @ | | OceanaGold Corp. | | | 111,853 | |
| | 54,457 | | | @ | | Pan Pacific Petroleum NL | | | 13,440 | |
| | 36,239 | | | | | RCR Tomlinson Ltd. | | | 36,886 | |
| | 362,932 | | | @ | | Roc Oil Co., Ltd. | | | 145,388 | |
| | 1,098,221 | | | | | Sigma Pharmaceuticals Ltd. | | | 454,039 | |
| | 43,154 | | | @ | | Silver Lake Resources Ltd. | | | 47,960 | |
| | 50,439 | | | | | Sims Group Ltd. | | | 948,151 | |
| | 5,497 | | | | | Sirtex Medical Ltd. | | | 29,167 | |
| | 114,543 | | | | | Skilled Group Ltd. | | | 143,306 | |
| | 143,529 | | | | | Sonic Healthcare Ltd. | | | 1,823,779 | |
| | 28,375 | | | | | Specialty Fashion Group Ltd. | | | 35,858 | |
| | 73,318 | | | | | Spotless Group Ltd. | | | 189,898 | |
| | 50,570 | | | @ | | Tap Oil Ltd. | | | 50,817 | |
| | 574,854 | | | @ | | Transpacific Industries Group Ltd. | | | 664,605 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,471,870 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 2.0% |
| | 40,000 | | | | | Andritz AG | | | 2,449,108 | |
| | 26,000 | | | | | Kapsch TrafficCom AG | | | 1,073,093 | |
| | 18,409 | | | | | Mayr Melnhof Karton AG | | | 1,790,310 | |
| | 25,661 | | | @ | | RHI AG | | | 856,765 | |
| | 40,000 | | | I | | Rosenbauer International AG | | | 1,615,211 | |
| | 18,000 | | | | | Schoeller-Bleckmann Oilfield Equipment AG | | | 940,655 | |
| | 4,727 | | | | | Strabag SE | | | 123,075 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,848,217 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 1.6% |
| | 134,000 | | | @ | | AGFA-Gevaert NV | | | 993,960 | |
| | 7,300 | | | | | Bekaert SA | | | 1,305,193 | |
| | 5,138 | | | | | Compagnie d’Entreprises CFE | | | 285,282 | |
| | 2,758 | | | | | D’ieteren SA | | | 1,291,928 | |
| | 21,000 | | | | | EVS Broadcast Equipment SA | | | 1,154,798 | |
| | 3,954 | | | | | Ion Beam Applications | | | 40,116 | |
| | 11,457 | | | | | Kinepolis Group NV | | | 631,341 | |
| | 39,862 | | | | | Nyrstar | | | 517,319 | |
| | 44,377 | | | | | Recticel S.A. | | | 470,641 | |
| | 16,593 | | | | | Tessenderlo Chemie NV | | | 531,312 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,221,890 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.7% |
| | 55,000 | | | @ | | Dockwise Ltd. | | | 1,594,042 | |
| | 6,361 | | | @,L | | Global Sources Ltd. | | | 46,626 | |
| | 161,871 | | | | | Lancashire Holdings Ltd. | | | 1,147,800 | |
| | 44,000 | | | @ | | Northern Offshore Ltd. | | | 94,432 | |
| | 848,000 | | | | | Regal Hotels International Holdings Ltd. | | | 320,788 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,203,688 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 3.8% |
| | 9,916 | | | | | Aastra Technologies Ltd. | | | 268,546 | |
| | 75,872 | | | | | Alamos Gold, Inc. | | | 1,127,100 | |
| | 78,000 | | | | | Alimentation Couche-Tard, Inc. | | | 1,455,109 | |
| | 7,100 | | | | | Atco Ltd. | | | 341,021 | |
| | 6,600 | | | @ | | Canam Group, Inc. | | | 54,188 | |
| | 6,200 | | | @ | | Canfor Corp. | | | 63,599 | |
| | 53,800 | | | @ | | Capstone Mining Corp. | | | 154,652 | |
| | 42,700 | | | @ | | Cascades, Inc. | | | 332,924 | |
| | 25,400 | | | @ | | Celestica, Inc. | | | 250,549 | |
| | 180,566 | | | @ | | CGI Group, Inc. — Class A | | | 2,673,472 | |
| | 80,361 | | | | | Chemtrade Logistics Income Fund | | | 1,026,070 | |
| | 2,100 | | | | | Cogeco, Inc. | | | 61,276 | |
| | 150,400 | | | @ | | Compton Petroleum Corp. | | | 143,619 | |
| | 10,800 | | | @ | | Cott Corp. | | | 90,372 | |
| | 6,800 | | | | | Data Group Income Fund | | | 60,650 | |
| | 49,400 | | | | | Dorel Industries, Inc. | | | 1,749,279 | |
| | 6,500 | | | @ | | Dundee Corp. | | | 89,585 | |
| | 23,800 | | | @ | | Fairborne Energy Ltd. | | | 103,794 | |
| | 1,884 | | | @ | | FirstService Corp. | | | 44,971 | |
| | 24,300 | | | @ | | Flint Energy Services Ltd. | | | 320,794 | |
| | 5,400 | | | @ | | Fortress Paper Ltd. | | | 106,852 | |
| | 9,800 | | | @ | | Garda World Security Corp. | | | 90,301 | |
| | 12,900 | | | | | IESI-BFC Ltd. | | | 253,225 | |
| | 2,700 | | | | | Linamar Corp. | | | 54,170 | |
| | 5,948 | | | | | MDC Partners, Inc. | | | 76,908 | |
| | 15,100 | | | | | MI Developments, Inc. | | | 204,907 | |
| | 14,946 | | | @ | | Niko Resources Ltd. | | | 1,638,351 | |
| | 5,794 | | | @ | | North American Energy Partners, Inc. | | | 65,356 | |
| | 175,300 | | | @ | | Northgate Minerals Corp. | | | 569,492 | |
| | 15,900 | | | | | Onex Corp. | | | 460,659 | |
| | 2,900 | | | | | Quebecor, Inc. | | | 103,176 | |
| | 44,500 | | | @ | | Shore Gold, Inc. | | | 37,675 | |
| | 71,034 | | | @ | | Sino-Forest Corp. | | | 1,262,920 | |
| | 8,535 | | | @ | | Tesco Corp. | | | 106,773 | |
| | 5,300 | | | @ | | Transat AT, Inc. | | | 63,341 | |
| | 28,000 | | | | | West Fraser Timber Co., Ltd. | | | 1,212,837 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,718,513 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 1.3% |
| | 1,116,000 | | | @ | | BaWang International Group Holding Ltd. | | | 821,452 | |
| | 1,270,000 | | | | | China Dongxiang Group Co. | | | 862,023 | |
| | 1,693,000 | | | | | China Gaoxian Fibre Fabric Holdings Ltd. | | | 223,992 | |
| | 3,785 | | | @ | | China Integrated Energy, Inc. | | | 44,549 | |
| | 496,000 | | | | | China Zaino International Ltd. | | | 98,063 | |
| | 155,515 | | | @ | | Concord Medical Services Holdings Ltd. ADR | | | 1,129,039 | |
| | 1,636,000 | | | | | Guangzhou Pharmaceutical Co., Ltd. | | | 1,889,440 | |
| | 42,200 | | | | | Jiangling Motors Corp. Ltd. | | | 85,533 | |
| | 268,000 | | | | | People’s Food Holdings Ltd. | | | 134,835 | |
| | 250,000 | | | | | Qingling Motors Co., Ltd. | | | 61,375 | |
| | 1,776,000 | | | | | SinoCom Software Group Ltd. | | | 292,289 | |
| | 86,000 | | | | | SunVic Chemical Holdings Ltd. | | | 11,036 | |
| | 190,000 | | | | | Xingda International Holdings Ltd. | | | 128,052 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,781,678 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 0.8% |
| | 15,788 | | | | | East Asiatic Co., Ltd. A/S | | | 433,960 | |
| | 433 | | | | | PER Aarsleff A/S | | | 40,298 | |
See Accompanying Notes to Financial Statements
126
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Denmark (continued) |
| | 21,162 | | | | | Solar Holdings A/S | | $ | 1,438,836 | |
| | 17,801 | | | @ | | TK Development | | | 86,841 | |
| | 26,500 | | | | | TrygVesta A/S | | | 1,635,905 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,635,840 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.3% |
| | 18,640 | | | | | HKScan Oyj | | | 220,826 | |
| | 138,686 | | | @ | | M-Real OYJ | | | 481,888 | |
| | 60,344 | | | | | Oriola-KD OYJ | | | 293,075 | |
| | 16,923 | | | | | Tietoenator OYJ | | | 350,299 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,346,088 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 5.8% |
| | 70,000 | | | @ | | Alten | | | 2,042,533 | |
| | 17,770 | | | | | Arkema | | | 741,311 | |
| | 2,567 | | | | | Assystem | | | 39,603 | |
| | 3,302 | | | | | Boiron SA | | | 133,986 | |
| | 9,233 | | | | | Bonduelle S.C.A. | | | 996,402 | |
| | 1,105 | | | @ | | Bongrain SA | | | 86,625 | |
| | 53,000 | | | | | Bourbon S.A. | | | 2,295,874 | |
| | 44,928 | | | @ | | Bull SA | | | 210,309 | |
| | 41,097 | | | @ | | Club Mediterranee SA | | | 688,425 | |
| | 4,346 | | | | | Devoteam S.A. | | | 118,938 | |
| | 93,608 | | | | | Groupe Eurotunnel S.A. | | | 854,793 | |
| | 15,247 | | | | | Groupe Steria SCA | | | 478,939 | |
| | 190,843 | | | | | Havas SA | | | 1,022,141 | |
| | 50,000 | | | @ | | Meetic | | | 1,381,037 | |
| | 49,937 | | | | | NetGem SA | | | 211,793 | |
| | 8,639 | | | | | Nexans S.A. | | | 681,019 | |
| | 57,660 | | | @ | | Peugeot S.A. | | | 1,702,957 | |
| | 1,875 | | | | | Plastic Omnium S.A. | | | 82,066 | |
| | 83,716 | | | | | Rallye SA | | | 3,079,805 | |
| | 31,517 | | | @ | | Rhodia S.A. | | | 727,937 | |
| | 26,000 | | | | | Rubis | | | 2,140,344 | |
| | 26,000 | | | | | Saft Groupe SA | | | 944,456 | |
| | 40,000 | | | @ | | SeLoger.com | | | 1,615,619 | |
| | 4,143 | | | | | Sopra Group SA | | | 314,424 | |
| | 44,000 | | | @ | | Store Electronic | | | 668,727 | |
| | 29,093 | | | | | Sword Group | | | 999,126 | |
| | 46,124 | | | @ | | Valeo S.A. | | | 1,542,752 | |
| | 7,158 | | | @ | | Video Futur Entertainment Group S.A. | | | 2,859 | |
| | 872 | | | | | Virbac SA | | | 96,274 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 25,901,074 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 8.5% |
| | 100,000 | | | @ | | Air Berlin PLC | | | 533,912 | |
| | 18,500 | | | @,L | | Balda AG | | | 76,301 | |
| | 60,095 | | | | | Bechtle AG | | | 1,792,152 | |
| | 14,424 | | | | | Bertrandt AG | | | 529,097 | |
| | 3,200 | | | I | | Bijou Brigitte AG | | | 547,026 | |
| | 35,000 | | | | | Bilfinger Berger AG | | | 2,324,447 | |
| | 4,687 | | | @ | | Centrotec Sustainable AG | | | 81,470 | |
| | 6,363 | | | | | Cewe Color Holding AG | | | 238,989 | |
| | 100,000 | | | @ | | Compugroup Holding AG | | | 1,114,814 | |
| | 55,000 | | | @ | | Demag Cranes AG | | | 1,901,910 | |
| | 96,776 | | | @ | | Deutsche Lufthansa AG | | | 1,609,329 | |
| | 6,996 | | | | | Duerr AG | | | 165,150 | |
| | 3,487 | | | @ | | Elmos Semiconductor AG | | | 30,680 | |
| | 1,440 | | | | | Euromicron AG | | | 34,937 | |
| | 145,000 | | | @ | | Freenet AG | | | 1,691,371 | |
| | 4,683 | | | | | Gerry Weber International AG | | | 159,224 | |
| | 6,681 | | | | | Gesco AG | | | 352,165 | |
| | 40,000 | | | | | GFK SE | | | 1,511,293 | |
| | 26,000 | | | | | Grenkeleasing AG | | | 1,127,530 | |
| | 18,000 | | | I | | Hawesko Holding AG | | | 617,546 | |
| | 2,106 | | | | | Indus Holding AG | | | 43,755 | |
| | 90,000 | | | @ | | IWKA AG | | | 1,360,615 | |
| | 26,643 | | | @ | | Kabel Deutschland Holding AG | | | 844,278 | |
| | 3,338 | | | @ | | Kloeckner & Co. AG | | | 88,234 | |
| | 5,341 | | | @ | | Koenig & Bauer AG | | | 99,700 | |
| | 87,915 | | | | | Medion AG | | | 1,171,131 | |
| | 33,000 | | | @ | | Morphosys AG | | | 674,914 | |
| | 78,443 | | | | | MTU Aero Engines Holding AG | | | 4,312,695 | |
| | 41,499 | | | | | Norddeutsche Affinerie AG | | | 2,097,298 | |
| | 3,613 | | | L | | OHB Technology AG | | | 68,002 | |
| | 17,000 | | | @ | | Open Business Club AG | | | 613,287 | |
| | 6,931 | | | | | R Stahl AG | | | 188,326 | |
| | 50,927 | | | | | Rheinmetall AG | | | 3,538,220 | |
| | 78,000 | | | @,I | | SFC Smart Fuel Cell AG | | | 596,829 | |
| | 57,094 | | | | | Suedzucker AG | | | 1,160,711 | |
| | 261 | | | | | Takkt AG | | | 2,862 | |
| | 37,122 | | | | | Tipp24 SE | | | 1,435,790 | |
| | 30,107 | | | @ | | Tom Tailor Holding AG | | | 517,310 | |
| | 144,204 | | | @ | | TUI AG | | | 1,595,751 | |
| | 3,309 | | | | | VTG AG | | | 54,039 | |
| | 60,000 | | | | | Wirecard AG | | | 672,481 | |
| | 1,364 | | | | | Wuestenrot & Wuerttembergische | | | 37,977 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 37,613,548 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.1% |
| | 149,038 | | | | | Aegean Airlines SA | | | 591,240 | |
| | 3,045 | | | | | Folli-Follie S.A. | | | 70,056 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 661,296 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 5.3% |
| | 102,000 | | | | | AMVIG Holdings Ltd. | | | 74,771 | |
| | 4,464,000 | | | @ | | Beijing Enterprises Water Group Ltd. | | | 1,762,001 | |
| | 132,218 | | | @ | | CDC Corp. — Class A | | | 351,700 | |
| | 5,848,000 | | | | | Champion Technology Holdings Ltd. | | | 193,791 | |
| | 200,000 | | | | | Chen Hsong Holdings | | | 82,739 | |
| | 1,347,000 | | | | | China Agri-Industries Holdings Ltd. | | | 1,764,765 | |
| | 918,000 | | | | | China Gas Holdings Ltd. | | | 520,720 | |
| | 856,000 | | | @ | | China Sci-Tech Holdings Ltd. | | | 31,127 | |
| | 35,000 | | | | | Chong Hing Bank Ltd. | | | 68,045 | |
| | 5,374,000 | | | | | Citic 1616 Holdings Ltd. | | | 1,738,097 | |
| | 604,800 | | | @ | | Dah Sing Banking Group Ltd. | | | 816,803 | |
| | 135,500 | | | | | Dickson Concepts International Ltd. | | | 82,720 | |
| | 1,076,000 | | | @ | | DMX Technologies Group Ltd. | | | 300,000 | |
| | 148,000 | | | | | Eagle Nice International Holdings Ltd. | | | 59,750 | |
| | 452,000 | | | | | First Pacific Co. | | | 303,646 | |
| | 5,493,000 | | | @ | | Fook Woo Group Holdings Ltd. | | | 1,839,454 | |
| | 370,000 | | | @ | | Fountain SET Holdings | | | 61,625 | |
| | 4,194,000 | | | | | Franshion Properties China Ltd. | | | 1,191,004 | |
| | 263,000 | | | @ | | Galaxy Entertainment Group Ltd. | | | 122,513 | |
| | 970,000 | | | @ | | Genesis Energy Holdings Ltd. | | | 71,289 | |
| | 158,000 | | | | | Giordano International Ltd. | | | 73,075 | |
| | 5,605,840 | | | @ | | Global Green Tech Group Ltd. | | | 212,995 | |
| | 108,000 | | | | | Glorious Sun Enterprises Ltd. | | | 45,380 | |
| | 603,000 | | | | | Goldlion Holdings Ltd. | | | 212,126 | |
| | 122,000 | | | | | Great Eagle Holding Co. | | | 341,402 | |
| | 5,000 | | | | | Guoco Group Ltd. | | | 51,999 | |
| | 238,000 | | | | | Hannstar Board International Holdings Ltd. | | | 55,693 | |
| | 100,000 | | | | | HKR International Ltd. | | | 38,430 | |
| | 41,000 | | | | | Hongkong & Shanghai Hotels | | | 64,728 | |
| | 740,000 | | | | | Huafeng Group Holdings Ltd. | | | 64,245 | |
| | 176,000 | | | | | Hung Hing Printing Group Ltd. | | | 54,995 | |
| | 2,953,000 | | | | | Hutchison Telecommunications Hong Kong Holdings Ltd | | | 609,500 | |
| | 5,070,000 | | | | | Inspur International Ltd. | | | 520,607 | |
| | 106,000 | | | @ | | Jinhui Holdings Ltd. | | | 39,706 | |
| | 9,500 | | | @ | | Jinhui Shipping & Transportation Ltd. | | | 48,898 | |
| | 3,680,000 | | | | | Lai Fung Holdings Ltd. | | | 131,648 | |
| | 1,898,000 | | | | | Lee & Man Paper Manufacturing Ltd. | | | 1,657,800 | |
| | 98,000 | | | | | Lippo Ltd. | | | 31,675 | |
| | 750,000 | | | | | Luk Fook Holdings International Ltd. | | | 879,680 | |
See Accompanying Notes to Financial Statements
127
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Hong Kong (continued) |
| | 12,300 | | | @ | | Nam Tai Electronics, Inc. | | $ | 61,746 | |
| | 660,000 | | | | | Newocean Energy Holdings Ltd. | | | 109,696 | |
| | 1,060,000 | | | @ | | Next Media Ltd. | | | 195,943 | |
| | 1,313,000 | | | | | Pacific Andes Holdings Ltd. | | | 362,564 | |
| | 255,000 | | | | | Pacific Century Premium Developments Ltd. | | | 102,809 | |
| | 3,255,000 | | | | | Polytec Asset Holdings Ltd. | | | 637,459 | |
| | 184,693 | | | @ | | RCG Holdings Ltd./Hong Kong | | | 198,520 | |
| | 102,000 | | | | | Road King Infrastructure Ltd. | | | 82,798 | |
| | 1,256,000 | | | | | SIM Technology Group Ltd. | | | 339,486 | |
| | 9,472,000 | | | | | Sinolink Worldwide Holdings | | | 1,491,975 | |
| | 790,000 | | | | | Skyworth Digital Holdings Ltd. | | | 712,900 | |
| | 316,000 | | | | | Strong Petrochemical Holdings Ltd. | | | 64,679 | |
| | 1,671,000 | | | | | Techtronic Industries Co. | | | 1,736,382 | |
| | 168,000 | | | | | Texwinca Holdings Ltd. | | | 179,463 | |
| | 746,000 | | | | | Tomson Group Ltd. | | | 308,669 | |
| | 938,000 | | | | | VST Holdings Ltd. | | | 346,641 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 23,502,872 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 2.1% |
| | 347,241 | | | | | Allahabad Bank | | | 1,277,008 | |
| | 69,845 | | | | | Andhra Bank | | | 206,891 | |
| | 519,939 | | | | | Apollo Tyres Ltd. | | | 813,911 | |
| | 43,162 | | | | | Bank of Baroda | | | 663,770 | |
| | 42,651 | | | | | Bank of Maharashtra | | | 52,787 | |
| | 147,774 | | | | | Canara Bank | | | 1,417,949 | |
| | 169,896 | | | | | Central Bank Of India | | | 611,145 | |
| | 15,900 | | | @ | | Chennai Petroleum Corp. Ltd. | | | 99,262 | |
| | 27,351 | | | | | Deepak Fertilizers & Petrochemicals Corp. Ltd. | | | 70,627 | |
| | 810,122 | | | | | Dena Bank | | | 1,608,027 | |
| | 30,623 | | | | | Gujarat Narmada Valley Fertilizers Co., Ltd. | | | 82,256 | |
| | 43,200 | | | | | Gujarat State Fertilisers & Chemicals Ltd. | | | 250,843 | |
| | 57,600 | | | | | JBF Industries Ltd. | | | 204,882 | |
| | 179,534 | | | | | KRBL Ltd. | | | 111,893 | |
| | 107,845 | | | | | Oriental Bank of Commerce | | | 855,508 | |
| | 17,217 | | | | | PSL Ltd. | | | 59,030 | |
| | 38,290 | | | | | Sonata Software Ltd. | | | 51,540 | |
| | 25,377 | | | | | Tamilnadu Newsprint & Papers Ltd. | | | 56,263 | |
| | 35,927 | | | | | Union Bank of India | | | 250,582 | |
| | 111,194 | | | | | Vijaya Bank | | | 133,178 | |
| | 17,244 | | | | | Zuari Industries Ltd. | | | 255,586 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,132,938 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 0.3% |
| | 2,032,000 | | | | | Bank Mandiri | | | 1,286,906 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,286,906 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.6% |
| | 74,820 | | | @ | | Bank of Ireland — Dublin Exchange | | | 164,128 | |
| | 80,000 | | | | | DCC PLC | | | 2,137,066 | |
| | 88,000 | | | | | Grafton Group PLC | | | 426,818 | |
| | 27,338 | | | | | IFG Group PLC | | | 43,679 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,771,691 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 0.1% |
| | 80,000 | | | @,I | | Oridion Systems Ltd. | | | 657,710 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 657,710 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 3.3% |
| | 12,841 | | | @ | | Amplifon S.p.A. | | | 66,796 | |
| | 71,021 | | | @ | | AS Roma S.p.A. | | | 78,864 | |
| | 66,040 | | | | | Autostrada Torino-Milano S.p.A. | | | 923,429 | |
| | 190,000 | | | | | Azimut Holding S.p.A. | | | 2,141,041 | |
| | 27,114 | | | | | Benetton Group S.p.A. | | | 233,103 | |
| | 29,747 | | | | | Brembo S.p.A. | | | 233,730 | |
| | 110,000 | | | | | Buzzi Unicem S.p.A. RNC | | | 996,603 | |
| | 300,000 | | | @ | | CIR-Compagnie Industriali Riunite S.p.A. | | | 635,705 | |
| | 21,875 | | | | | Danieli & Co. S.p.A. | | | 552,471 | |
| | 131,288 | | | | | Davide Campari-Milano S.p.A. | | | 1,340,395 | |
| | 22,500 | | | | | DiaSorin SpA | | | 838,843 | |
| | 5,363 | | | @ | | Engineering Ingegneria Informatica S.p.A. | | | 173,581 | |
| | 25,804 | | | | | Esprinet S.p.A. | | | 258,273 | |
| | 26,437 | | | @ | | Gruppo Coin S.p.A. | | | 188,125 | |
| | 85,121 | | | @ | | Indesit Co. S.p.A. | | | 1,146,882 | |
| | 44,614 | | | | | Landi Renzo S.p.A. | | | 185,332 | |
| | 217,217 | | | @ | | Natuzzi S.p.A. ADR | | | 1,018,748 | |
| | 3,456 | | | @ | | Prima Industrie S.p.A. | | | 34,858 | |
| | 78,300 | | | | | Prysmian S.p.A. | | | 1,409,883 | |
| | 2,314,408 | | | @ | | Seat Pagine Gialle S.p.A. | | | 525,190 | |
| | 52,679 | | | | | Societa Iniziative Autostradali e Servizi S.p.A. | | | 484,732 | |
| | 31,880 | | | @ | | Sorin S.p.A. | | | 62,798 | |
| | 162,000 | | | | | Zignago Vetro S.p.A. | | | 937,784 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,467,166 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 21.0% |
| | 768 | | | | | Accordia Golf Co., Ltd. | | | 845,079 | |
| | 22,452 | | | | | Adores, Inc. | | | 20,963 | |
| | 5,900 | | | | | Aeon Fantasy Co., Ltd. | | | 76,431 | |
| | 61,900 | | | | | Aica Kogyo Co., Ltd. | | | 645,311 | |
| | 63,000 | | | | | Aichi Machine Industry Co., Ltd. | | | 257,760 | |
| | 18,000 | | | | | Aichi Steel Corp. | | | 77,931 | |
| | 1,000 | | | | | Alconix Corp. | | | 39,467 | |
| | 295,200 | | | | | Allied Telesis Holdings KK | | | 429,058 | |
| | 5,500 | | | | | Aloka Co., Ltd. | | | 53,432 | |
| | 10,200 | | | | | Alpen Co., Ltd. | | | 178,910 | |
| | 2,900 | | | | | Arakawa Chemical Industries Ltd. | | | 36,431 | |
| | 3,900 | | | | | Arc Land Sakamoto Co., Ltd. | | | 48,289 | |
| | 104,400 | | | | | Arcs Co., Ltd. | | | 1,400,883 | |
| | 18,800 | | | | | Argo Graphics, Inc. | | | 212,995 | |
| | 6,700 | | | | | Arnest One Corp. | | | 69,131 | |
| | 94,726 | | | @ | | Arrk Corp. | | | 161,137 | |
| | 47,000 | | | | | Asahi Diamond Industrial Co. Ltd | | | 488,420 | |
| | 634 | | | @ | | Asset Managers Holdings Co., Ltd. | | | 82,225 | |
| | 12,900 | | | | | Cawachi Ltd. | | | 263,802 | |
| | 956,000 | | | | | Chori Co., Ltd. | | | 1,219,247 | |
| | 6,500 | | | | | Chubu Steel Plate Co., Ltd. | | | 42,213 | |
| | 67,000 | | | | | Chuetsu Pulp & Paper Co., Ltd. | | | 124,984 | |
| | 14,000 | | | | | Chugai Ro Co., Ltd. | | | 40,418 | |
| | 108,000 | | | | | Chugoku Marine Paints Ltd. | | | 808,791 | |
| | 192,000 | | | | | Daido Steel Co., Ltd. | | | 816,152 | |
| | 9,850 | | | @ | | Daiei, Inc. | | | 45,664 | |
| | 59,000 | | | | | Daihatsu Diesel Manufacturing Co., Ltd. | | | 269,865 | |
| | 78,000 | | | | | Daiichi Jitsugyo Co., Ltd. | | | 224,130 | |
| | 26,900 | | | | | Daiichikosho Co., Ltd. | | | 356,954 | |
| | 6,200 | | | | | Daikoku Denki Co., Ltd. | | | 110,209 | |
| | 5,700 | | | | | Daimei Telecom Engineering Corp. | | | 46,299 | |
| | 235,000 | | | | | Daiwa Industries Ltd. | | | 1,206,124 | |
| | 1,600 | | | | | Doshisha Co., Ltd. | | | 40,783 | |
| | 84,000 | | | | | Dowa Holdings Co., Ltd. | | | 466,327 | |
| | 31,591 | | | | | DTS Corp. | | | 381,661 | |
| | 6,900 | | | | | Dydo Drinco, Inc. | | | 256,006 | |
| | 13,000 | | | | | Eighteenth Bank Ltd. | | | 36,493 | |
| | 12,000 | | | | | Excel Co., Ltd. | | | 166,146 | |
| | 26,900 | | | | | Exedy Corp. | | | 709,738 | |
| | 1,216 | | | | | Faith, Inc. | | | 145,071 | |
| | 4,700 | | | | | Fuji Electronics Co., Ltd. | | | 60,068 | |
| | 57,600 | | | | | Fuji Machine Manufacturing Co., Ltd. | | | 977,425 | |
| | 24,700 | | | | | Fuji Oil Co., Ltd. | | | 343,128 | |
| | 54,727 | | | | | Fuji Soft, Inc. | | | 961,696 | |
| | 160,000 | | | | | Fujikura Kasei Co., Ltd. | | | 838,910 | |
| | 2,400 | | | | | Fujimori Kogyo Co., Ltd. | | | 34,586 | |
See Accompanying Notes to Financial Statements
128
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Japan (continued) |
| | 92 | | | | | Fujishoji Co., Ltd. | | $ | 87,371 | |
| | 6,000 | | | | | Fujitec Co., Ltd. | | | 34,838 | |
| | 6,800 | | | | | Fujitsu Frontech Ltd. | | | 52,547 | |
| | 1,200 | | | | | Fukuda Denshi Co., Ltd. | | | 28,588 | |
| | 20,100 | | | | | Furuno Electric Co., Ltd. | | | 122,728 | |
| | 45,400 | | | @ | | Futaba Industrial Co., Ltd. | | | 366,810 | |
| | 107 | | | | | Future Architect, Inc. | | | 41,910 | |
| | 33 | | | L | | Gendai Agency, Inc. | | | 34,565 | |
| | 48,300 | | | | | Glory Ltd. | | | 1,229,433 | |
| | 31 | | | @ | | GungHo Online Entertainment, Inc. | | | 91,645 | |
| | 10,700 | | | | | Hakuto Co., Ltd. | | | 111,973 | |
| | 4,100 | | | | | Hibiya Engineering Ltd. | | | 39,964 | |
| | 3,800 | | | | | Hiday Hidaka Corp. | | | 44,250 | |
| | 8,200 | | | | | Hi-Lex Corp. | | | 102,728 | |
| | 58,200 | | | | | HIS Co., Ltd. | | | 1,192,129 | |
| | 52,000 | | | | | Hisaka Works Ltd. | | | 593,817 | |
| | 4,000 | | | | | Hitachi Medical Corp. | | | 35,736 | |
| | 4,100 | | | | | H-One Co. Ltd | | | 43,457 | |
| | 11,000 | | | | | Hudson Soft Co., Ltd. | | | 46,694 | |
| | 19,300 | | | | | Icom, Inc. | | | 532,171 | |
| | 724 | | | @ | | IDU Co. | | | 61,436 | |
| | 33,100 | | | | | Iida Home Max | | | 328,973 | |
| | 10,200 | | | | | Inaba Denki Sangyo Co., Ltd. | | | 251,941 | |
| | 111,709 | | | | | Inabata & Co., Ltd. | | | 560,681 | |
| | 125,900 | | | | | Ines Corp. | | | 1,067,605 | |
| | 124 | | | | | Infocom Corp. | | | 172,608 | |
| | 6,700 | | | | | Innotech Corp. | | | 52,383 | |
| | 37 | | | | | Internet Initiative Japan, Inc. | | | 91,833 | |
| | 11,500 | | | | | Itochu Enex Co., Ltd. | | | 56,926 | |
| | 1,700 | | | | | Itochu-Shokuhin Co., Ltd. | | | 53,824 | |
| | 46,000 | | | | | Iwatani International Corp. | | | 132,977 | |
| | 455,000 | | | | | JFE Shoji Holdings, Inc. | | | 2,345,070 | |
| | 51,000 | | | | | Jidosha Buhin Kogyo Co., Ltd. | | | 161,114 | |
| | 24,000 | | | | | JMS Co., Ltd. | | | 99,194 | |
| | 97,000 | | | | | JSP Corp. | | | 1,142,707 | |
| | 1,675,000 | | | @ | | Kanematsu Corp. | | | 1,524,222 | |
| | 5,100 | | | | | Kanematsu Electronics Ltd. | | | 45,028 | |
| | 12,000 | | | | | Kasai Kogyo Co., Ltd. | | | 49,082 | |
| | 15,000 | | | | | Kasumi Co., Ltd. | | | 76,890 | |
| | 28,000 | | | | | Kato Sangyo Co., Ltd. | | | 435,685 | |
| | 2,900 | | | | | Kita-Nippon Bank Ltd. | | | 76,252 | |
| | 33,000 | | | | | Koito Manufacturing Co., Ltd. | | | 543,472 | |
| | 28,600 | | | L | | Kojima Co., Ltd. | | | 243,368 | |
| | 58,000 | | | @ | | Kumagai Gumi Co., Ltd. | | | 49,636 | |
| | 17,600 | | | | | Kura Corp. | | | 311,109 | |
| | 93,200 | | | | | Kuroda Electric Co., Ltd. | | | 1,407,740 | |
| | 28,100 | | | | | Kyoden Co., Ltd. | | | 54,177 | |
| | 36,000 | | | | | Kyodo Printing Co., Ltd. | | | 104,926 | |
| | 436,000 | | | | | Kyodo Shiryo Co., Ltd. | | | 559,526 | |
| | 11,000 | | | | | Kyorin Co., Ltd. | | | 158,188 | |
| | 47,900 | | | | | Lintec Corp. | | | 909,886 | |
| | 7,500 | | | | | Macnica, Inc. | | | 173,012 | |
| | 16,000 | | | | | Maeda Road Construction Co., Ltd. | | | 137,145 | |
| | 5,100 | | | | | Marubun Corp. | | | 37,548 | |
| | 203,000 | | | | | Marudai Food Co., Ltd. | | | 561,488 | |
| | 19,000 | | | | | Mercian Corp. | | | 39,084 | |
| | 19,200 | | | | | Mikuni Coca-Cola Bottling Co., Ltd. | | | 152,203 | |
| | 96,227 | | | | | Mimasu Semiconductor Industry Co., Ltd. | | | 1,428,507 | |
| | 43,700 | | | | | Miura Co., Ltd. | | | 1,068,549 | |
| | 81,900 | | | | | Modec, Inc. | | | 1,497,708 | |
| | 51,550 | | | | | Moshi Moshi Hotline, Inc. | | | 1,060,898 | |
| | 64 | | | | | MTI Ltd. | | | 112,687 | |
| | 76,300 | | | | | Musashi Seimitsu Industry Co., Ltd. | | | 1,891,225 | |
| | 74,000 | | | | | Nabtesco Corp. | | | 932,573 | |
| | 13,000 | | | | | Nagase & Co., Ltd. | | | 155,072 | |
| | 61,183 | | | | | Namura Shipbuilding Co., Ltd. | | | 325,976 | |
| | 5,557 | | | | | NEC Fielding Ltd. | | | 74,887 | |
| | 2,800 | | | | | NEC Leasing Ltd. | | | 38,510 | |
| | 1,200 | | | | | NEC Mobiling, Ltd. | | | 30,350 | |
| | 100,900 | | | | | NEC Networks & System Integration Corp. | | | 1,234,425 | |
| | 41 | | | | | Net One systems Co., Ltd. | | | 59,431 | |
| | 59,700 | | | | | Nichi-iko Pharmaceutical Co., Ltd. | | | 1,875,152 | |
| | 9,000 | | | | | Nichireki Co., Ltd. | | | 45,365 | |
| | 69,500 | | | | | Nidec Copal Corp. | | | 1,156,028 | |
| | 74,100 | | | | | Nifco, Inc. | | | 1,657,053 | |
| | 107,000 | | | | | Nihon Parkerizing Co., Ltd. | | | 1,531,443 | |
| | 12,000 | | | | | Nihon Yamamura Glass Co., Ltd. | | | 39,076 | |
| | 161,000 | | | | | Nippo Corp. | | | 1,242,638 | |
| | 11,000 | | | | | Nippon Meat Packers, Inc. | | | 138,956 | |
| | 57,786 | | | | | Nippon Road Co., Ltd. | | | 151,360 | |
| | 4,000 | | | | | Nippon Seiki Co., Ltd. | | | 43,992 | |
| | 99,000 | | | | | Nippon Shinyaku Co., Ltd. | | | 1,139,574 | |
| | 94,000 | | | | | Nippon Steel Trading Co., Ltd. | | | 252,343 | |
| | 343,000 | | | | | Nippon Thompson Co., Ltd. | | | 2,326,114 | |
| | 49,400 | | | @ | | NIS Group Co., Ltd. | | | 14,746 | |
| | 370,000 | | | | | Nishimatsu Construction Co., Ltd. | | | 524,615 | |
| | 46,900 | | | | | Nishimatsuya Chain Co., Ltd. | | | 528,158 | |
| | 7,600 | | | | | Nisshin Fudosan Co | | | 55,065 | |
| | 9,000 | | | | | Nissin Kogyo Co., Ltd. | | | 146,328 | |
| | 117,100 | | | | | Nitta Corp. | | | 1,843,969 | |
| | 199,000 | | | | | Nittetsu Mining Co., Ltd. | | | 885,975 | |
| | 4,967 | | | | | Nojima Corp. | | | 49,557 | |
| | 6,500 | | | | | Noritsu Koki Co., Ltd. | | | 51,707 | |
| | 3,700 | | | | | Noritz Corp. | | | 56,194 | |
| | 57,000 | | | | | Obayashi Road Corp. | | | 132,885 | |
| | 2,510 | | | | | Obic Co., Ltd. | | | 503,422 | |
| | 4,200 | | | | | Ohsho Food Service Corp. | | | 108,715 | |
| | 44,700 | | | | | Okabe Co., Ltd. | | | 170,568 | |
| | 7,000 | | | | | Pacific Industrial Co., Ltd. | | | 38,672 | |
| | 68,000 | | | | | Penta-Ocean Construction Co., Ltd. | | | 113,887 | |
| | 314 | | | | | Pilot Corp. | | | 451,689 | |
| | 116,000 | | | | | Prima Meat Packers Ltd. | | | 130,630 | |
| | 1,200 | | | | | Raito Kogyo Co., Ltd. | | | 3,277 | |
| | 13,100 | | | | | Resorttrust, Inc. | | | 191,272 | |
| | 10,200 | | | | | Right On Co., Ltd. | | | 82,049 | |
| | 17,000 | | | | | Ryoden Trading Co., Ltd. | | | 98,601 | |
| | 6,600 | | | | | Ryoyo Electro Corp. | | | 67,278 | |
| | 6,200 | | | | | Saison Information Systems Co., Ltd. | | | 44,209 | |
| | 16,000 | | | | | Sakata INX Corp. | | | 72,255 | |
| | 42 | | | | | Sammy NetWorks Co., Ltd. | | | 164,994 | |
| | 15,000 | | | | | San-Ai Oil Co., Ltd. | | | 68,876 | |
| | 85,000 | | | | | Sanki Engineering Co., Ltd. | | | 688,715 | |
| | 4,900 | | | | | Sanoh Industrial Co., Ltd. | | | 39,148 | |
| | 10,500 | | | | | Sanoyas Hishino Meisho Corp. | | | 43,675 | |
| | 52,354 | | | | | Sanshin Electronics Co., Ltd. | | | 490,374 | |
| | 48 | | | | | Sanyo Housing Nagoya Co., Ltd. | | | 43,432 | |
| | 13,000 | | | | | Seika Corp. | | | 30,098 | |
| | 6,400 | | | | | Seiren Co., Ltd. | | | 39,460 | |
| | 17,000 | | | | | Sekisui Jushi Corp. | | | 157,283 | |
| | 645 | | | | | Seven Bank Ltd. | | | 1,264,683 | |
| | 4,800 | | | | | Shin-Etsu Polymer Co., Ltd. | | | 36,168 | |
| | 122,300 | | | | | Shinko Plantech Co., Ltd. | | | 1,132,927 | |
| | 421,000 | | | | | Shinmaywa Industries Ltd. | | | 1,835,050 | |
| | 243,000 | | | | | Shinsho Corp. | | | 547,197 | |
| | 39,000 | | | | | Siix Corp. | | | 500,243 | |
| | 15,000 | | | | | Sinanen Co., Ltd. | | | 65,857 | |
| | 4,800 | | | | | Sintokogio Ltd. | | | 40,006 | |
| | 69,900 | | | | | Sojitz Corp. | | | 126,056 | |
| | 46 | | | | | SRI Sports Ltd. | | | 45,331 | |
| | 78,700 | | | | | Sumida Corp. | | | 1,073,363 | |
| | 230,000 | | | | | Sumikin Bussan Corp. | | | 568,153 | |
| | 3,100 | | | | | Sumisho Computer Systems Corp. | | | 51,074 | |
| | 53,500 | | | | | Sumitomo Densetsu Co., Ltd. | | | 271,160 | |
| | 11,200 | | | | | Sumitomo Titanium Corp. | | | 439,410 | |
| | 25,700 | | | | | Tachi-S Co., Ltd. | | | 303,569 | |
| | 64 | | | | | Tact Home Co., Ltd. | | | 54,595 | |
See Accompanying Notes to Financial Statements
129
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Japan (continued) |
| | 96,000 | | | | | Taihei Kogyo Co., Ltd. | | $ | 399,467 | |
| | 25,882 | | | | | Taiho Kogyo Co., Ltd. | | | 273,707 | |
| | 77,734 | | | | | Taikisha Ltd. | | | 1,362,711 | |
| | 230,000 | | | | | Takasago International Corp. | | | 1,164,621 | |
| | 29,850 | | | | | Takefuji Corp. | | | 120,261 | |
| | 13,000 | | | | | Takiron Co., Ltd. | | | 39,113 | |
| | 87,000 | | | | | TBK Co., Ltd. | | | 296,015 | |
| | 6,100 | | | | | TECMO KOEI HOLDINGS CO Ltd. | | | 48,950 | |
| | 41,000 | | | @ | | Tekken Corp. | | | 41,351 | |
| | 26,518 | | | | | TKC Corp. | | | 466,536 | |
| | 327,000 | | | | | Toa Corp. | | | 396,027 | |
| | 138,000 | | | | | TOA Road Corp. | | | 253,883 | |
| | 20,000 | | | | | Toho Bank Ltd. | | | 62,856 | |
| | 22,000 | | | | | Toho Gas Co., Ltd. | | | 111,326 | |
| | 12,100 | | | | | Toho Pharmaceutical Co., Ltd. | | | 194,249 | |
| | 358,000 | | | | | Tokai Tokyo Financial Holdings | | | 1,384,969 | |
| | 151,000 | | | | | Tokyo Tekko Co., Ltd. | | | 455,088 | |
| | 21,000 | | | @ | | TOMONY Holdings, Inc. | | | 72,210 | |
| | 248,000 | | | @ | | Tonichi Carlife Group, Inc. | | | 316,732 | |
| | 197,782 | | | | | Topy Industries Ltd. | | | 469,312 | |
| | 96 | | | | | Tosei Corp. | | | 37,794 | |
| | 8,000 | | | | | Totetsu Kogyo Co., Ltd. | | | 46,171 | |
| | 11,400 | | | | | Touei Housing Corp. | | | 123,647 | |
| | 223,800 | | | | | Toyo Kohan Co., Ltd. | | | 1,255,741 | |
| | 185,179 | | | | | Toyo Securities Co., Ltd. | | | 360,094 | |
| | 4,700 | | | | | Trans Cosmos, Inc. | | | 43,153 | |
| | 89,900 | | | | | Trusco Nakayama Corp. | | | 1,485,920 | |
| | 25,000 | | | | | Tsumura & Co. | | | 730,402 | |
| | 27,800 | | | | | Tsuruha Holdings, Inc. | | | 1,001,105 | |
| | 43,800 | | | | | Tsutsumi Jewelry Co., Ltd. | | | 1,024,322 | |
| | 125,000 | | | | | Uchida Yoko Co., Ltd. | | | 401,216 | |
| | 10,000 | | | | | Union Tool Co. | | | 298,962 | |
| | 41,334 | | | | | Unipres Corp. | | | 607,350 | |
| | 8,900 | | | | | U-Shin Ltd. | | | 86,216 | |
| | 7,500 | | | | | VITAL KSK HOLDINGS, Inc. | | | 44,724 | |
| | 12,500 | | | | | Warabeya Nichiyo Co., Ltd. | | | 149,317 | |
| | 8,800 | | | | | Waseda Academy Co., Ltd. | | | 63,592 | |
| | 11,900 | | | | | Watabe Wedding Corp. | | | 153,842 | |
| | 1,486 | | | | | Works Applications Co., Ltd. | | | 968,621 | |
| | 45 | | | | | Wowow, Inc. | | | 99,400 | |
| | 224,800 | | | | | Yamazen Corp. | | | 973,136 | |
| | 10,000 | | | | | Yokohama Reito Co., Ltd. | | | 71,681 | |
| | 53,000 | | | | | Yonekyu Corp. | | | 499,752 | |
| | 10,200 | | | | | Yorozu Corp. | | | 158,995 | |
| | 1,049,000 | | | | | Yuasa Trading Co., Ltd. | | | 1,086,528 | |
| | 7,000 | | | | | Yurtec Corp. | | | 32,241 | |
| | 31,100 | | | | | Yushin Precision Equipment Co., Ltd. | | | 520,014 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 93,428,868 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.5% |
| | 58,750 | | | @ | | L’OCCITANE International | | | 115,259 | |
| | 1,078,226 | | | | | Regus PLC | | | 1,898,105 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,013,364 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Malaysia: 0.4% |
| | 87,500 | | | | | Faber Group BHD | | | 62,508 | |
| | 57,800 | | | | | Hong Leong Bank BHD | | | 157,099 | |
| | 26,900 | | | | | Hong Leong Financial Group BHD | | | 73,005 | |
| | 222,293 | | | | | Kulim Malaysia BHD | | | 513,950 | |
| | 1,028,900 | | | | | Lion Industries Corp. Bhd | | | 562,862 | |
| | 59,500 | | | | | RHB Capital Berhad | | | 114,771 | |
| | 261,000 | | | | | Telekom Malaysia BHD | | | 283,269 | |
| | 116,800 | | | @ | | Titan Chemicals Corp. | | | 47,311 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,814,775 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 3.6% |
| | 5,297 | | | | | Accell Group | | | 239,542 | |
| | 13,915 | | | @ | | AerCap Holdings NV | | | 192,027 | |
| | 16,532 | | | | | Beter BED Holdings NV | | | 406,062 | |
| | 21,951 | | | | | CSM | | | 709,347 | |
| | 86,000 | | | @ | | Delta Lloyd NV | | | 1,843,074 | |
| | 44,300 | | | @ | | Draka Holding | | | 864,712 | |
| | 15,000 | | | | | Exact Holding NV | | | 376,174 | |
| | 29,700 | | | | | Fugro NV | | | 1,933,273 | |
| | 60,000 | | | | | Imtech NV | | | 1,892,220 | |
| | 125,309 | | | @ | | James Hardie Industries NV | | | 878,552 | |
| | 2,560 | | | | | KAS Bank NV | | | 42,964 | |
| | 21,225 | | | | | Nutreco Holding NV | | | 1,327,981 | |
| | 15,117 | | | | | OPG Groep NV | | | 280,321 | |
| | 28,988 | | | @ | | Ordina NV | | | 154,132 | |
| | 66,800 | | | | | SBM Offshore NV | | | 1,314,526 | |
| | 20,000 | | | @ | | Smartrac NV | | | 372,540 | |
| | 29,133 | | | @ | | Teleplan International NV | | | 90,307 | |
| | 90,000 | | | | | Ten Cate NV | | | 2,455,877 | |
| | 2,138 | | | | | TKH Group NV | | | 44,795 | |
| | 26,246 | | | @ | | Unit 4 Agresso NV | | | 685,961 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,104,387 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands Antilles: 0.4% |
| | 48,467 | | | @,L | | Orthofix International NV | | | 1,657,087 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,657,087 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.7% |
| | 360,498 | | | | | Fisher & Paykel Healthcare Corp. | | | 920,576 | |
| | 378,794 | | | | | Fletcher Building Ltd. | | | 2,298,918 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,219,494 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.5% |
| | 10,600 | | | @ | | Copeinca ASA | | | 90,009 | |
| | 213,950 | | | @,L | | Norske Skogindustrier ASA | | | 327,193 | |
| | 550,000 | | | @ | | Pronova BioPharma AS | | | 1,757,182 | |
| | 5,800 | | | L | | Sparebanken Ost | | | 33,546 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,207,930 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pakistan: 0.1% |
| | 1,100,563 | | | | | Bank Alfalah Ltd. | | | 149,362 | |
| | 165,800 | | | | | Nishat Mills Ltd. | | | 107,652 | |
| | 601,500 | | | | | Pakistan Telecommunication Co., Ltd. | | | 154,242 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 411,256 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Poland: 0.0% |
| | 30,476 | | | @ | | Netia SA | | | 50,761 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 50,761 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | �� | | | | | Singapore: 2.0% |
| | 265,000 | | | | | Baker Technology Ltd. | | | 97,169 | |
| | 73,609 | | | | | China Yuchai International Ltd. | | | 1,553,150 | |
| | 161,000 | | | | | Chip Eng Seng Corp. Ltd. | | | 47,333 | |
| | 263,000 | | | | | CSE Global Ltd. | | | 199,574 | |
| | 1,165,000 | | | | | GuocoLeisure Ltd. | | | 542,933 | |
| | 205,000 | | | | | Hiap Seng Engineering Ltd. | | | 102,304 | |
| | 217,000 | | | | | Ho Bee Investment Ltd. | | | 261,063 | |
| | 274,000 | | | | | Hong Leong Asia Ltd. | | | 949,966 | |
| | 16,000 | | | | | Hong Leong Finance Ltd. | | | 36,144 | |
| | 295,000 | | | | | InnoTek Ltd. | | | 131,477 | |
| | 29,000 | | | | | Jardine Cycle & Carriage Ltd. | | | 637,626 | |
| | 383,000 | | | | | K1 Ventures Ltd. | | | 45,963 | |
| | 1,223,000 | | | | | LC Development Ltd. | | | 167,010 | |
| | 113,000 | | | | | Low Keng Huat Singapore Ltd. | | | 38,246 | |
| | 216,000 | | | | | Meiban Group Ltd. | | | 46,619 | |
| | 347,000 | | | | | Olam International Ltd. | | | 654,748 | |
| | 101,000 | | | @ | | OSIM International Ltd. | | | 61,529 | |
| | 70,000 | | | | | QAF Ltd. | | | 37,617 | |
| | 548,000 | | | | | SIA Engineering Co., Ltd. | | | 1,466,644 | |
| | 674,000 | | | | | Singapore Airport Terminal Services Ltd. | | | 1,371,941 | |
| | 1,068,000 | | | | | SMB United Ltd. | | | 241,545 | |
| | 36,000 | | | | | Soilbuild Group Holdings Ltd. | | | 38,706 | |
| | 480,000 | | | @ | | Sunningdale Tech Ltd. | | | 87,674 | |
| | 128,000 | | | | | Super Coffeemix Manufacturing Ltd. | | | 79,793 | |
See Accompanying Notes to Financial Statements
130
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Singapore (continued) |
| | 58,000 | | | | | Swissco International Ltd. | | $ | 36,100 | |
| | 437,000 | | | | | Tiong Woon Corp. Holding Ltd. | | | 162,994 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,095,868 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.9% |
| | 106,650 | | | @ | | Doosan Infracore Co., Ltd. | | | 2,118,894 | |
| | 10,000 | | | | | GS Engineering & Construction Corp. | | | 755,893 | |
| | 31,760 | | | | | Hanil E-Wha Co., Ltd. | | | 182,476 | |
| | 17,400 | | | | | Hyundai DSF Co., Ltd. | | | 136,672 | |
| | 7,250 | | | | | Kolon Industries, Inc. | | | 203,401 | |
| | 151 | | | | | Namyang Dairy Products Co., Ltd. | | | 72,479 | |
| | 14,425 | | | | | Samsung SDI Co., Ltd. | | | 1,921,772 | |
| | 41,577 | | | | | SeAH Steel Corp. | | | 1,460,671 | |
| | 14,320 | | | | | Sebang Co., Ltd. | | | 196,687 | |
| | 21,971 | | | | | Taewoong Co., Ltd. | | | 1,460,318 | |
| | 2,020 | | | | | Youngone Corp. | | | 59,551 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,568,814 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 0.9% |
| | 9,485 | | | @ | | Baron de Ley | | | 460,573 | |
| | 5,942 | | | | | Caja de Ahorros del Mediterraneo | | | 47,542 | |
| | 79,600 | | | @ | | Codere S.A. | | | 838,555 | |
| | 2,680 | | | | | Construcciones y Auxiliar de Ferrocarriles SA | | | 1,470,012 | |
| | 25,547 | | | | | Enagas | | | 512,336 | |
| | 65,000 | | | | | Laboratorios Farmaceuticos Rovi SA | | | 566,261 | |
| | 8,638 | | | | | Pescanova SA | | | 246,739 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,142,018 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.4% |
| | 25,099 | | | @ | | Billerud Aktiebolag | | | 196,938 | |
| | 1,616 | | | | | Cardo AB | | | 51,959 | |
| | 25,929 | | | | | Duni AB | | | 209,647 | |
| | 218,882 | | | @ | | Eniro AB | | | 628,538 | |
| | 4,074 | | | @ | | Entraction Holding AB | | | 24,936 | |
| | 14,044 | | | | | Industrial & Financial Systems | | | 151,673 | |
| | 32,694 | | | L | | Industrivarden AB | | | 447,529 | |
| | 11,164 | | | | | Know It AB | | | 104,400 | |
| | 141,617 | | | | | NCC AB | | | 2,184,207 | |
| | 8,294 | | | | | New Wave Group AB | | | 44,103 | |
| | 4,875 | | | | | Nolato AB | | | 49,980 | |
| | 18,700 | | | | | Saab AB | | | 289,402 | |
| | 80,000 | | | | | Swedish Match AB | | | 1,813,573 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,196,885 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 6.5% |
| | 545 | | | @ | | AFG Arbonia-Forster Holding | | | 13,932 | |
| | 46,000 | | | | | Bank Sarasin & Compagnie AG | | | 1,789,272 | |
| | 5,325 | | | | | Banque Cantonale Vaudoise | | | 2,341,741 | |
| | 4,900 | | | | | Bellevue Group AG | | | 172,916 | |
| | 2,350 | | | @ | | Bobst Group AG | | | 93,572 | |
| | 3,140 | | | @ | | Charles Voegele Holding AG | | | 146,108 | |
| | 183,670 | | | @,L | | Clariant AG | | | 2,534,131 | |
| | 1,701 | | | | | Coltene Holding AG | | | 89,963 | |
| | 6,500 | | | @ | | Dufry Group | | | 555,938 | |
| | 1,342 | | | | | Emmi AG | | | 209,002 | |
| | 4,208 | | | | | Forbo Holding AG | | | 1,746,522 | |
| | 63,000 | | | @ | | Gategroup Holding AG | | | 2,303,629 | |
| | 2,300 | | | | | Gurit Holding AG | | | 1,273,800 | |
| | 2,300 | | | | | Helvetia Holding AG | | | 702,790 | |
| | 28,214 | | | @ | | Implenia AG | | | 811,540 | |
| | 148,000 | | | | | Julius Baer Holding AG — Reg | | | 1,838,383 | |
| | 4,000 | | | | | Kuoni Reisen Holding | | | 1,417,982 | |
| | 14,949 | | | @ | | Micronas Semiconductor Hold | | | 82,822 | |
| | 75,000 | | | | | Mobilezone Holding AG | | | 622,691 | |
| | 13,383 | | | I | | Newave Energy Holding SA | | | 570,849 | |
| | 21,102 | | | @ | | Orior AG | | | 984,361 | |
| | 10,100 | | | | | Partners Group | | | 1,352,238 | |
| | 3,935 | | | | | Schindler Holding AG | | | 345,656 | |
| | 7,054 | | | | | Schweizerhall Holding AG | | | 1,031,267 | |
| | 1,100 | | | | | Sika AG | | | 1,953,799 | |
| | 12,818 | | | | | Valora Holding AG | | | 3,220,202 | |
| | 95 | | | | | Vetropack Holding AG | | | 171,703 | |
| | 3,337 | | | | | VZ Holding AG | | | 293,187 | |
| | 25 | | | | | Zehnder Group AG | | | 41,200 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 28,711,196 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.2% |
| | 17,000 | | | | | Audix Corp. | | | 13,503 | |
| | 61,000 | | | | | Cameo Communications, Inc. | | | 34,825 | |
| | 16,000 | | | | | China Steel Structure Co., Ltd. | | | 12,009 | |
| | 149,000 | | | | | Chin-Poon Industrial Co. | | | 116,375 | |
| | 286,000 | | | | | Elitegroup Computer Systems Co., Ltd. | | | 118,494 | |
| | 1,171,000 | | | @ | | Far Eastern International Bank | | | 380,455 | |
| | 664,000 | | | @ | | Financial One Corp. | | | 225,873 | |
| | 17,000 | | | | | FSP Technology, Inc. | | | 22,641 | |
| | 773,000 | | | | | Gigabyte Technology Co., Ltd. | | | 854,352 | |
| | 259,000 | | | | | Hung Poo Real Estate Development Corp. | | | 342,807 | |
| | 751,300 | | | | | Inventec Co., Ltd. | | | 433,158 | |
| | 76,000 | | | @ | | Jean Co., Ltd. | | | 39,507 | |
| | 385,000 | | | | | King Yuan Electronics Co., Ltd. | | | 182,275 | |
| | 126,480 | | | | | Lingsen Precision Industries Ltd. | | | 79,619 | |
| | 33,000 | | | | | Long Bon International Co., Ltd. | | | 16,604 | |
| | 95,000 | | | | | Mercuries & Associates Ltd. | | | 48,690 | |
| | 33,000 | | | @ | | Princo Corp. | | | 11,830 | |
| | 1,081,000 | | | @ | | Sampo Corp. | | | 174,328 | |
| | 616,000 | | | | | Sigurd Microelectronics Corp. | | | 501,530 | |
| | 2,070 | | | | | Sinon Corp. | | | 914 | |
| | 20,400 | | | @,I,X | | Star Travel Co., Ltd. | | | 18,375 | |
| | 251,000 | | | @ | | Ta Chong Bank Co., Ltd. | | | 51,616 | |
| | 25,000 | | | | | Taiwan Sogo Shin Kong SEC | | | 18,820 | |
| | 13,600 | | | | | Tsann Kuen Enterprise Co., Ltd. | | | 32,266 | |
| | 56,170 | | | | | TYC Brother Industrial Co., Ltd. | | | 43,155 | |
| | 97,000 | | | | | Walton Advanced Engineering, Inc. | | | 51,069 | |
| | 439,000 | | | @ | | WUS Printed Circuit Co., Ltd. | | | 193,252 | |
| | 603,000 | | | | | Yageo Corp. | | | 289,085 | |
| | 521,000 | | | | | Yosun Industrial Corp. | | | 857,120 | |
| | 297,000 | | | | | Zenitron Corp. | | | 214,328 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,378,875 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.3% |
| | 205,700 | | | | | Kiatnakin Bank PLC | | | 168,807 | |
| | 3,302,900 | | | | | Krung Thai Bank PCL | | | 1,243,285 | |
| | 119,000 | | | @ | | Mermaid Maritime PCL | | | 62,054 | |
| | 127,400 | | | | | Thanachart Capital PCL | | | 88,526 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,562,672 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 0.1% |
| | 28,021 | | | | | Eczacibasi Yatirim Holding | | | 107,638 | |
| | 28,916 | | | | | Goodyear Lastikleri TAS | | | 344,044 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 451,682 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 14.1% |
| | 60,000 | | | | | A.G.BARR PLC | | | 853,716 | |
| | 57,337 | | | | | Aggreko PLC | | | 1,068,036 | |
| | 150,000 | | | | | Albemarle & Bond Holdings | | | 528,020 | |
| | 45,000 | | | | | Amec PLC | | | 571,869 | |
| | 162,770 | | | | | Anglo Pacific Group PLC | | | 604,691 | |
| | 26,483 | | | | | Anite PLC | | | 13,643 | |
| | 45,782 | | | | | Arriva PLC | | | 533,403 | |
| | 35,021 | | | | | Ashtead Group PLC | | | 63,209 | |
| | 107,939 | | | | | Atkins WS PLC | | | 1,167,911 | |
| | 317,047 | | | @ | | Avocet Mining PLC | | | 589,047 | |
| | 150,231 | | | L | | Babcock International Group | | | 1,339,726 | |
| | 47,701 | | | | | Beazley PLC | | | 82,744 | |
| | 200,000 | | | | | Bodycote PLC | | | 677,906 | |
| | 85,349 | | | | | Booker Group PLC | | | 55,761 | |
| | 17,551 | | | | | Britvic PLC | | | 128,635 | |
See Accompanying Notes to Financial Statements
131
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 50,000 | | | | | BSS Group PLC | | $ | 235,128 | |
| | 60,000 | | | | | Burberry Group PLC | | | 614,519 | |
| | 92,173 | | | @ | | Cape PLC | | | 354,967 | |
| | 200,148 | | | @ | | Capital & Regional PLC | | | 106,715 | |
| | 150,000 | | | | | Carillion PLC | | | 783,250 | |
| | 132,045 | | | | | Chloride Group PLC | | | 604,655 | |
| | 2,979 | | | | | Clarkson PLC | | | 43,301 | |
| | 35,000 | | | | | Close Brothers Group PLC | | | 389,576 | |
| | 61,287 | | | | | Computacenter PLC | | | 305,482 | |
| | 55,962 | | | | | Cranswick PLC | | | 682,552 | |
| | 125,000 | | | @ | | CSR PLC | | | 817,556 | |
| | 65,000 | | | | | Daily Mail & General Trust | | | 514,101 | |
| | 217,605 | | | | | Dairy Crest Group PLC | | | 1,190,493 | |
| | 30,000 | | | @ | | Dana Petroleum PLC | | | 553,199 | |
| | 44,079 | | | | | Davis Service Group PLC | | | 288,595 | |
| | 80,000 | | | | | Dechra Pharmaceuticals PLC | | | 559,718 | |
| | 342,260 | | | | | Devro PLC | | | 892,845 | |
| | 398,512 | | | | | Dimension Data Holdings PLC | | | 552,173 | |
| | 300,000 | | | | | Diploma PLC | | | 1,020,801 | |
| | 83,939 | | | | | Drax Group PLC | | | 463,220 | |
| | 497,522 | | | | | DS Smith PLC | | | 1,021,324 | |
| | 307,932 | | | | | eaga PLC | | | 626,541 | |
| | 5,000 | | | | | Education Development International PLC | | | 10,550 | |
| | 1,000,000 | | | | | Elementis PLC | | | 986,248 | |
| | 200,000 | | | | | Fenner PLC | | | 653,247 | |
| | 97,237 | | | | | Fiberweb PLC | | | 79,536 | |
| | 20,000 | | | | | Fidessa Group PLC | | | 402,351 | |
| | 21,990 | | | | | Forth Ports PLC | | | 452,261 | |
| | 878,624 | | | | | Future PLC | | | 215,095 | |
| | 42,148 | | | | | Game Group PLC | | | 61,345 | |
| | 12,588 | | | | | Go-Ahead Group PLC | | | 271,942 | |
| | 291,162 | | | | | Grainger PLC | | | 617,922 | |
| | 130,971 | | | | | Greggs PLC | | | 961,915 | |
| | 100,000 | | | | | Halfords Group PLC | | | 774,611 | |
| | 150,000 | | | | | Halma PLC | | | 624,540 | |
| | 160,014 | | | | | Hamworthy KSE | | | 732,302 | |
| | 157,605 | | | | | Healthcare Locums PLC | | | 595,923 | |
| | 8,548 | | | | | Hill & Smith Holdings PLC | | | 47,138 | |
| | 450,000 | | | | | HMV Group PLC | | | 494,372 | |
| | 703,840 | | | | | Home Retail Group | | | 2,951,157 | |
| | 17,419 | | | | | Homeserve PLC | | | 530,745 | |
| | 94,821 | | | | | Hunting PLC | | | 816,570 | |
| | 80,000 | | | | | IG Group Holdings PLC | | | 496,104 | |
| | 1,361,971 | | | @ | | Inchcape PLC | | | 713,142 | |
| | 441,097 | | | | | Intec Telecom Systems PLC | | | 446,944 | |
| | 159,041 | | | | | Interserve PLC | | | 536,543 | |
| | 254,293 | | | | | Investec PLC | | | 2,013,154 | |
| | 225,000 | | | | | ITE Group PLC | | | 518,804 | |
| | 115,000 | | | | | John Wood Group PLC | | | 647,767 | |
| | 155,877 | | | @ | | Johnston Press PLC | | | 78,717 | |
| | 58,000 | | | | | Keller Group PLC | | | 642,449 | |
| | 93,000 | | | | | Kesa Electricals PLC | | | 176,718 | |
| | 50,000 | | | | | Kier Group PLC | | | 868,713 | |
| | 235,000 | | | | | Liontrust Asset Management PLC | | | 363,054 | |
| | 428,244 | | | | | LogicaCMG PLC | | | 895,964 | |
| | 343,668 | | | | | Mcbride PLC | | | 980,879 | |
| | 150,000 | | | | | Mears Group PLC | | | 721,421 | |
| | 96,737 | | | | | Meggitt PLC | | | 460,305 | |
| | 111,103 | | | | | Millennium & Copthorne Hotels PLC | | | 800,742 | |
| | 274,306 | | | | | Mitie Group | | | 978,683 | |
| | 105,303 | | | | | Mondi PLC | | | 710,817 | |
| | 17,054 | | | | | Morgan Sindall PLC | | | 147,657 | |
| | 30,836 | | | | | Next PLC | | | 1,077,635 | |
| | 137,072 | | | | | Northern Foods PLC | | | 114,603 | |
| | 57,634 | | | | | Oxford Instruments PLC | | | 251,102 | |
| | 70,329 | | | | | Pace PLC | | | 198,528 | |
| | 214,208 | | | @ | | Premier Foods PLC | | | 85,664 | |
| | 60,000 | | | @ | | Premier Oil PLC | | | 1,161,968 | |
| | 40,000 | | | | | Provident Financial PLC | | | 510,994 | |
| | 420,000 | | | | | PV Crystalox Solar PLC | | | 314,203 | |
| | 150,000 | | | | | PZ Cussons PLC | | | 623,436 | |
| | 321,630 | | | | | Rank Group PLC | | | 597,109 | |
| | 160,000 | | | | | Ricardo PLC | | | 735,033 | |
| | 110,000 | | | | | RM PLC | | | 296,678 | |
| | 12,487 | | | | | Robert Wiseman Dairies PLC | | | 89,150 | |
| | 25,270 | | | | | RPC Group PLC | | | 94,974 | |
| | 76,637 | | | @ | | SDL PLC | | | 529,524 | |
| | 813,928 | | | | | Senior PLC | | | 1,444,614 | |
| | 43,313 | | | | | Severfield-Rowen PLC | | | 144,608 | |
| | 436,231 | | | | | Shanks Group PLC | | | 687,723 | |
| | 400,000 | | | @ | | SIG PLC | | | 804,530 | |
| | 39,196 | | | | | Smiths News PLC | | | 73,697 | |
| | 143,043 | | | @ | | Southern Cross Healthcare Ltd. | | | 170,237 | |
| | 37,114 | | | | | Synergy Health PLC | | | 347,719 | |
| | 61,465 | | | | | Tate & Lyle PLC | | | 427,886 | |
| | 26,814 | | | @ | | TT electronics PLC | | | 43,200 | |
| | 33,120 | | | | | Tullett Prebon PLC | | | 177,116 | |
| | 30,000 | | | | | Ultra Electronics Holdings | | | 708,310 | |
| | 75,000 | | | | | United Business Media Ltd. | | | 633,154 | |
| | 45,000 | | | | | Victrex PLC | | | 691,881 | |
| | 70,000 | | | | | Vitec Group PLC | | | 443,411 | |
| | 54,565 | | | | | Weir Group PLC | | | 819,140 | |
| | 65,000 | | | | | Wellstream Holdings PLC | | | 593,555 | |
| | 105,000 | | | | | WH Smith PLC | | | 805,459 | |
| | 250,000 | | | | | William Hill PLC | | | 781,153 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 62,855,369 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 0.1% |
| | 6,120 | | | @ | | Cascal N.V. | | | 41,249 | |
| | 47,155 | | | @ | | Golden Star Resources Ltd. | | | 213,612 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 254,861 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $383,316,413) | | | 433,349,147 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 1.0% |
| | | | | | | |
| | | | | | | Australia: 0.4% |
| | 1,155,076 | | | | | Centro Retail Trust | | | 245,574 | |
| | 1,255,916 | | | | | Mirvac Group | | | 1,611,634 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,857,208 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 0.1% |
| | 21,400 | | | @ | | Extendicare Real Estate Investment Trust | | | 193,818 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 193,818 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.0% |
| | 88,000 | | | | | RREEF China Commercial Trust | | | 46,470 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 46,470 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.1% |
| | 70,000 | | | | | Eurobank Properties Real Estate Investment Co. | | | 527,597 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 527,597 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 0.0% |
| | 76 | | | | | Crescendo Investment Corp. | | | 137,317 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 137,317 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.2% |
| | 1,254,000 | | | @ | | Cache Logistics Trust | | | 878,523 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 878,523 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.2% |
| | 40,000 | | | | | Derwent Valley Holdings PLC | | | 881,484 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 881,484 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $4,263,476) | | | 4,522,417 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
132
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
PREFERRED STOCK: 0.8% |
| | | | | | | |
| | | | | | | Germany: 0.8% |
| | 26,334 | | | | | Draegerwerk AG | | $ | 1,843,362 | |
| | 829 | | | | | Hornbach Holding AG | | | 81,755 | |
| | 12,633 | | | | | Hugo Boss AG | | | 546,273 | |
| | 31,256 | | | | | Jungheinrich AG | | | 704,094 | |
| | 13,512 | | | | | ProSieben SAT.1 Media AG | | | 253,839 | |
| | 390 | | | | | STO AG | | | 37,328 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $2,411,676) | | | 3,466,651 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $389,991,565) | | | 441,338,215 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 1.0% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 0.6% |
| | 2,484,510 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 2,484,510 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $2,484,510) | | | 2,484,510 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 0.4% |
| $ | 1,846,369 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | $ | 1,846,369 | |
| | 79,696 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 63,757 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $1,926,065) | | | 1,910,126 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $4,410,575) | | | 4,394,636 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $394,402,140)* | | | 100.2 | % | | $ | 445,732,851 | |
| | | | | Other Assets and
Liabilities - Net | | | (0.2 | ) | | | (926,381 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 444,806,470 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
| | | |
| * | | Cost for federal income tax purposes is $398,719,175. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 79,482,417 | |
| Gross Unrealized Depreciation | | | (32,468,741 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 47,013,676 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.5 | % |
| Aerospace/Defense | | | 1.3 | |
| Agriculture | | | 0.9 | |
| Airlines | | | 0.6 | |
| Apartments | | | 0.0 | |
| Apparel | | | 0.4 | |
| Auto Manufacturers | | | 1.2 | |
| Auto Parts & Equipment | | | 2.9 | |
| Banks | | | 3.9 | |
| Beverages | | | 0.9 | |
| Biotechnology | | | 0.2 | |
| Building Materials | | | 2.1 | |
| Chemicals | | | 3.4 | |
| Coal | | | 0.4 | |
| Commercial Services | | | 3.8 | |
| Computers | | | 3.8 | |
| Cosmetics/Personal Care | | | 0.4 | |
| Distribution/Wholesale | | | 3.4 | |
| Diversified | | | 0.6 | |
| Diversified Financial Services | | | 3.1 | |
| Electric | | | 0.1 | |
| Electrical Components & Equipment | | | 1.9 | |
| Electronics | | | 2.7 | |
| Energy — Alternate Sources | | | 0.3 | |
| Engineering & Construction | | | 4.8 | |
| Entertainment | | | 1.2 | |
| Environmental Control | | | 1.4 | |
| Food | | | 3.4 | |
| Food Service | | | 0.0 | |
| Forest Products & Paper | | | 1.7 | |
| Gas | | | 0.6 | |
| Hand/Machine Tools | | | 1.0 | |
| Health Care | | | 0.0 | |
| Healthcare — Products | | | 1.4 | |
| Healthcare — Services | | | 0.8 | |
| Holding Companies — Diversified | | | 0.9 | |
| Home Builders | | | 0.0 | |
| Home Furnishings | | | 1.1 | |
| Household Products/Wares | | | 0.4 | |
| Housewares | | | 0.1 | |
| Insurance | | | 1.2 | |
| Internet | | | 1.1 | |
| Investment Companies | | | 0.0 | |
| Iron/Steel | | | 0.9 | |
| Leisure Time | | | 1.3 | |
| Lodging | | | 0.3 | |
| Machinery — Construction & Mining | | | 0.9 | |
| Machinery — Diversified | | | 4.2 | |
| Media | | | 1.5 | |
| Metal Fabricate/Hardware | | | 2.8 | |
| Mining | | | 2.1 | |
| Miscellaneous Manufacturing | | | 3.1 | |
| Office Property | | | 0.1 | |
| Office/Business Equipment | | | 0.1 | |
| Oil & Gas | | | 1.9 | |
| Oil & Gas Services | | | 2.2 | |
| Packaging & Containers | | | 1.2 | |
| Pharmaceuticals | | | 2.6 | |
| Pipelines | | | 0.1 | |
| Real Estate | | | 1.9 | |
| Retail | | | 6.1 | |
| Semiconductors | | | 0.8 | |
| Shipbuilding | | | 0.1 | |
| Shopping Centers | | | 0.1 | |
| Software | | | 1.5 | |
| Telecommunications | | | 1.4 | |
| Textiles | | | 0.2 | |
| Transportation | | | 1.7 | |
| Venture Capital | | | 0.0 | |
| Warehouse/Industrial | | | 0.2 | |
| Water | | | 0.0 | |
| Short-Term Investments | | | 1.0 | |
| Other Assets and Liabilities — Net | | | (0.2 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
133
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2010 (Unaudited) (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | 113,487 | | | $ | 22,358,383 | | | $ | — | | | $ | 22,471,870 | |
| Austria | | | — | | | | 8,848,217 | | | | — | | | | 8,848,217 | |
| Belgium | | | 40,116 | | | | 7,181,774 | | | | — | | | | 7,221,890 | |
| Bermuda | | | 46,626 | | | | 3,157,062 | | | | — | | | | 3,203,688 | |
| Canada | | | 16,718,513 | | | | — | | | | — | | | | 16,718,513 | |
| China | | | 1,173,588 | | | | 4,608,090 | | | | — | | | | 5,781,678 | |
| Denmark | | | — | | | | 3,635,840 | | | | — | | | | 3,635,840 | |
| Finland | | | — | | | | 1,346,088 | | | | — | | | | 1,346,088 | |
| France | | | 317,283 | | | | 25,583,791 | | | | — | | | | 25,901,074 | |
| Germany | | | 3,863,950 | | | | 33,749,598 | | | | — | | | | 37,613,548 | |
| Greece | | | — | | | | 661,296 | | | | — | | | | 661,296 | |
| Hong Kong | | | 2,451,420 | | | | 21,051,452 | | | | — | | | | 23,502,872 | |
| India | | | — | | | | 9,132,938 | | | | — | | | | 9,132,938 | |
| Indonesia | | | — | | | | 1,286,906 | | | | — | | | | 1,286,906 | |
| Ireland | | | 43,679 | | | | 2,728,012 | | | | — | | | | 2,771,691 | |
| Israel | | | — | | | | 657,710 | | | | — | | | | 657,710 | |
| Italy | | | 1,282,944 | | | | 13,184,222 | | | | — | | | | 14,467,166 | |
| Japan | | | 1,553,057 | | | | 91,875,811 | | | | — | | | | 93,428,868 | |
| Luxembourg | | | — | | | | 2,013,364 | | | | — | | | | 2,013,364 | |
| Malaysia | | | — | | | | 1,814,775 | | | | — | | | | 1,814,775 | |
| Netherlands | | | 607,531 | | | | 15,496,856 | | | | — | | | | 16,104,387 | |
| Netherlands Antilles | | | 1,657,087 | | | | — | | | | — | | | | 1,657,087 | |
| New Zealand | | | — | | | | 3,219,494 | | | | — | | | | 3,219,494 | |
| Norway | | | — | | | | 2,207,930 | | | | — | | | | 2,207,930 | |
| Pakistan | | | 411,256 | | | | — | | | | — | | | | 411,256 | |
| Poland | | | — | | | | 50,761 | | | | — | | | | 50,761 | |
| Singapore | | | 1,553,150 | | | | 7,542,718 | | | | — | | | | 9,095,868 | |
| South Korea | | | 72,479 | | | | 8,496,335 | | | | — | | | | 8,568,814 | |
| Spain | | | 460,573 | | | | 3,681,445 | | | | — | | | | 4,142,018 | |
| Sweden | | | — | | | | 6,196,885 | | | | — | | | | 6,196,885 | |
| Switzerland | | | 4,948,549 | | | | 23,762,647 | | | | — | | | | 28,711,196 | |
| Taiwan | | | — | | | | 5,360,500 | | | | 18,375 | | | | 5,378,875 | |
| Thailand | | | — | | | | 1,562,672 | | | | — | | | | 1,562,672 | |
| Turkey | | | — | | | | 451,682 | | | | — | | | | 451,682 | |
| United Kingdom | | | 2,926,877 | | | | 59,928,492 | | | | — | | | | 62,855,369 | |
| United States | | | 254,861 | | | | — | | | | — | | | | 254,861 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 40,497,026 | | | | 392,833,746 | | | | 18,375 | | | | 433,349,147 | |
| | | | | | | | | | | | | | | | | |
| Real Estate Investment Trusts | | | 1,072,341 | | | | 3,450,076 | | | | — | | | | 4,522,417 | |
| Preferred Stock | | | — | | | | 3,466,651 | | | | — | | | | 3,466,651 | |
| Short-Term Investments | | | 4,330,879 | | | | — | | | | 63,757 | | | | 4,394,636 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 45,900,246 | | | $ | 399,750,473 | | | $ | 82,132 | | | $ | 445,732,851 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | $ | 744,766 | | | $ | — | | | $ | — | | | $ | — | | | $ | (68,403 | ) | | $ | 68,403 | | | $ | 18,375 | | | $ | (744,766 | ) | | $ | 18,375 | |
| Short-Term Investments | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 63,757 | | | | — | | | | 63,757 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 744,766 | | | $ | — | | | $ | — | | | $ | — | | | $ | (68,403 | ) | | $ | 68,403 | | | $ | 82,132 | | | $ | (744,766 | ) | | $ | 82,132 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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 $10,098.
| |
| ˆ | 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 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
134
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 95.3% |
| | | | | | | |
| | | | | | | Australia: 1.4% |
| | 777,300 | | | | | Australia & New Zealand Banking Group Ltd. | | $ | 17,216,634 | |
| | 1,500,000 | | | | | OneSteel Ltd. | | | 4,824,325 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,040,959 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 2.0% |
| | 450,200 | | | @ | | Frontline Ltd. | | | 16,432,300 | |
| | 415,534 | | | | | Tyco Electronics Ltd. | | | 13,346,952 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 29,779,252 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 2.1% |
| | 542,871 | | | | | Centrais Eletricas Brasileiras SA ADR — Class A | | | 7,757,627 | |
| | 160,600 | | | | | Petroleo Brasileiro SA ADR | | | 6,093,164 | |
| | 292,654 | | | | | Tele Norte Leste Participacoes SA ADR | | | 4,348,838 | |
| | 220,358 | | | | | Tim Participacoes SA ADR | | | 5,727,104 | |
| | 287,471 | | | | | Vivo Participacoes S.A. ADR | | | 7,609,357 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 31,536,090 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 5.4% |
| | 464,700 | | | | | Barrick Gold Corp. | | | 20,237,685 | |
| | 1,354,800 | | | | | Bombardier, Inc. — Class B | | | 7,068,754 | |
| | 818,297 | | | @ | | Celestica, Inc. | | | 8,019,311 | |
| | 553,200 | | | | | Loblaw Cos. Ltd. | | | 20,335,192 | |
| | 287,100 | | | | | Suncor Energy, Inc. | | | 9,810,207 | |
| | 216,300 | | | | | Toronto Dominion Bank | | | 16,076,639 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 81,547,788 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.8% |
| | 473,500 | | | | | Fortum OYJ | | | 12,234,887 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,234,887 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 11.5% |
| | 312,800 | | | | | Accor S.A. | | | 17,872,845 | |
| | 4,703,620 | | | @ | | Alcatel S.A. | | | 14,993,291 | |
| | 941,160 | | | L | | Carrefour S.A. | | | 46,129,858 | |
| | 249,000 | | | @ | | Compagnie Generale de Geophysique S.A. | | | 7,496,468 | |
| | 776,400 | | | | | Credit Agricole S.A. | | | 11,098,677 | |
| | 856,335 | | | | | France Telecom S.A. | | | 18,746,616 | |
| | 1,198,828 | | | @ | | Natixis | | | 6,130,904 | |
| | 489,883 | | | @ | | Sanofi-Aventis | | | 33,419,141 | |
| | 350,504 | | | | | Total S.A. | | | 19,070,005 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 174,957,805 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 5.8% |
| | 122,700 | | | | | Allianz AG | | | 14,066,961 | |
| | 189,000 | | | | | Deutsche Bank AG | | | 12,980,520 | |
| | 62,900 | | | | | Deutsche Bank AG | | | 4,390,281 | |
| | 394,000 | | | | | Deutsche Post AG | | | 6,390,513 | |
| | 1,735,419 | | | | | Deutsche Telekom AG | | | 22,595,615 | |
| | 116,945 | | | | | Siemens AG | | | 11,533,861 | |
| | 504,900 | | | | | ThyssenKrupp AG | | | 16,417,937 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 88,375,688 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.6% |
| | 7,762,600 | | | | | Chaoda Modern Agriculture | | | 8,875,041 | |
| | 2,022,000 | | | | | HongKong Electric Holdings | | | 11,931,295 | |
| | 3,247,413 | | | | | Sino Land Co. | | | 5,827,721 | |
| | 3,727,000 | | | | | Yue Yuen Industrial Holdings | | | 12,984,532 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 39,618,589 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 3.0% |
| | 344,300 | | | | | ENI S.p.A. | | | 7,694,881 | |
| | 2,186,582 | | | @ | | Intesa Sanpaolo S.p.A. | | | 7,206,800 | |
| | 5,398,185 | | | @ | | Telecom Italia S.p.A. | | | 7,547,210 | |
| | 20,598,316 | | | @ | | Telecom Italia S.p.A. RNC | | | 23,245,496 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 45,694,387 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 28.0% |
| | 701,000 | | | | | Akita Bank Ltd. | | | 2,678,056 | |
| | 307,400 | | | | | Astellas Pharma, Inc. | | | 10,763,592 | |
| | 441,900 | | | | | Canon, Inc. ADR | | | 20,185,992 | |
| | 731,000 | | | | | Dai Nippon Printing Co., Ltd. | | | 10,127,114 | |
| | 575,836 | | | | | Daiichi Sankyo Co., Ltd. | | | 10,007,078 | |
| | 476,500 | | | @ | | Elpida Memory, Inc. | | | 10,150,737 | |
| | 396,200 | | | | | Fuji Photo Film Co., Ltd. | | | 13,578,367 | |
| | 1,810,000 | | | | | Fujitsu Ltd. | | | 12,727,854 | |
| | 1,551,000 | | | | | Hino Motors Ltd. | | | 7,807,788 | |
| | 765,700 | | | | | Hitachi Ltd. | | | 3,365,347 | |
| | 473,300 | | | | | Mitsubishi Corp. | | | 11,211,481 | |
| | 3,115,900 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 16,237,062 | |
| | 792,700 | | | | | Mitsui & Co., Ltd. | | | 11,913,564 | |
| | 657,800 | | | | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 18,906,855 | |
| | 2,743,000 | | | | | Mitsui Trust Holdings, Inc. | | | 10,465,820 | |
| | 354,000 | | | | | Mitsumi Electric Co., Ltd. | | | 7,702,969 | |
| | 6,614,700 | | | | | Mizuho Financial Group, Inc. | | | 12,736,781 | |
| | 3,991,000 | | | | | NEC Corp. | | | 13,140,390 | |
| | 50,300 | | | | | Nintendo Co., Ltd. | | | 16,897,152 | |
| | 2,369,000 | | | | | Nippon Express Co., Ltd. | | | 11,161,103 | |
| | 518,600 | | | | | Nippon Telegraph & Telephone Corp. | | | 21,108,874 | |
| | 1,354,600 | | | | | Nomura Holdings, Inc. | | | 9,363,150 | |
| | 529,000 | | | | | Omron Corp. | | | 12,298,719 | |
| | 360,200 | | | | | Ono Pharmaceutical Co., Ltd. | | | 14,921,082 | |
| | 209,800 | | | | | Rohm Co., Ltd. | | | 15,548,285 | |
| | 435,500 | | | | | Seven & I Holdings Co., Ltd. | | | 11,136,211 | |
| | 848,000 | | | | | Sharp Corp. | | | 10,983,309 | |
| | 531,200 | | | | | Sony Corp. | | | 18,187,755 | |
| | 258,800 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 8,558,993 | |
| | 270,000 | | | | | Taisho Pharmaceutical Co., Ltd. | | | 4,910,750 | |
| | 314,200 | | | | | Takeda Pharmaceutical Co., Ltd. | | | 13,490,284 | |
| | 137,670 | | | | | Takefuji Corp. | | | 554,651 | |
| | 66,200 | | | | | TDK Corp. | | | 4,236,846 | |
| | 1,044,200 | | | | | Tokio Marine Holdings, Inc. | | | 31,086,480 | |
| | 407,400 | | | | | Toyota Motor Corp. | | | 15,741,105 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 423,891,596 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 0.7% |
| | 663,965 | | | | | Telefonos de Mexico SA de CV ADR | | | 10,191,863 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,191,863 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 5.9% |
| | 2,855,747 | | | @ | | Aegon NV | | | 19,973,119 | |
| | 165,800 | | | | | Akzo Nobel NV | | | 9,804,519 | |
| | 931,312 | | | | | Koninklijke Ahold NV | | | 12,770,267 | |
| | 764,900 | | | | | Royal Dutch Shell PLC — Class A | | | 23,824,266 | |
| | 511,879 | | | @ | | SNS Reaal | | | 2,958,129 | |
| | 369,800 | | | | | Unilever NV | | | 11,250,365 | |
| | 429,333 | | | | | Wolters Kluwer NV | | | 8,772,094 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 89,352,759 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.5% |
| | 4,488,465 | | | | | Telecom Corp. of New Zealand Ltd. | | | 7,019,300 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,019,300 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 1.0% |
| | 1,539,576 | | | @ | | Portugal Telecom SGPS S.A. | | | 15,668,651 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,668,651 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.9% |
| | 899,000 | | | | | United Overseas Bank Ltd. | | | 13,152,302 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,152,302 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
135
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | South Africa: 0.7% |
| | 744,657 | | | | | Standard Bank Group Ltd. | | $ | 11,472,809 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,472,809 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.3% |
| | 228,410 | | | | | Korea Electric Power Corp. | | | 6,929,264 | |
| | 195,310 | | | | | KT Corp. ADR | | | 4,414,006 | |
| | 51,085 | | | | | SK Telecom Co., Ltd. | | | 7,972,327 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,315,597 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 1.2% |
| | 961,100 | | | | | Iberdrola S.A. | | | 7,627,339 | |
| | 484,602 | | | | | Telefonica S.A. | | | 10,969,087 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,596,426 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.0% |
| | 1,274,460 | | | | | Telefonaktiebolaget LM Ericsson | | | 14,707,948 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,707,948 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 4.9% |
| | 1,114,100 | | | | | STMicroelectronics NV | | | 10,316,236 | |
| | 363,010 | | | | | Swiss Reinsurance | | | 15,743,183 | |
| | 32,900 | | | | | Swisscom AG | | | 11,165,031 | |
| | 1,200,537 | | | @ | | UBS AG — Reg | | | 18,598,937 | |
| | 523,000 | | | | | Xstrata PLC | | | 8,579,260 | |
| | 43,703 | | | | | Zurich Financial Services AG | | | 9,688,729 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 74,091,376 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 14.6% |
| | 397,450 | | | | | AstraZeneca PLC | | | 17,562,066 | |
| | 1,495,391 | | | | | Barclays PLC | | | 7,681,576 | |
| | 64,787 | | | | | BP PLC ADR | | | 3,378,642 | |
| | 724,400 | | | | | British Sky Broadcasting PLC | | | 6,780,753 | |
| | 2,081,480 | | | | | GlaxoSmithKline PLC | | | 38,634,464 | |
| | 2,169,600 | | | | | HSBC Holdings PLC | | | 22,091,861 | |
| | 630,981 | | | | | Imperial Tobacco Group PLC | | | 17,975,475 | |
| | 2,432,700 | | | | | International Power PLC | | | 12,313,615 | |
| | 7,669,626 | | | @ | | ITV PLC | | | 7,867,841 | |
| | 2,924,900 | | | | | Kingfisher PLC | | | 11,147,110 | |
| | 3,304,451 | | | | | Marks & Spencer Group PLC | | | 18,478,548 | |
| | 8,391,400 | | | | | Vodafone Group PLC | | | 18,594,185 | |
| | 2,827,031 | | | | | WM Morrison Supermarkets PLC | | | 12,507,440 | |
| | 750,968 | | | @ | | Wolseley PLC | | | 18,755,416 | |
| | 668,600 | | | | | WPP PLC | | | 7,088,747 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 220,857,739 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $1,540,452,810) | | | 1,444,103,811 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.6% |
| | | | | | | |
| | | | | | | Germany: 1.6% |
| | 250,161 | | | | | Volkswagen AG | | | 24,168,846 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $20,542,210) | | | 24,168,846 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $1,560,995,020) | | | 1,468,272,657 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 1.6% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 1.3% |
| | 20,092,211 | | | | | ING Institutional Prime Money Market Fund — Class I | | | | | | | 20,092,210 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $20,092,210) | | | 20,092,210 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 0.3% |
| | 2,737,407 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | | 2,737,407 | |
| | 1,202,292 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 961,834 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $3,939,699) | | | 3,699,241 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $24,031,909) | | | 23,791,451 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $1,585,026,929)* | | | 98.5 | % | | $ | 1,492,064,108 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.5 | | | | 23,140,769 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 1,515,204,877 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| | | |
| * | | Cost for federal income tax purposes is $1,602,188,560. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 143,532,348 | |
| Gross Unrealized Depreciation | | | (253,656,800 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (110,124,452 | ) |
| | | | | |
See Accompanying Notes to Financial Statements
136
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Agriculture | | | 1.8 | % |
| Apparel | | | 0.9 | |
| Auto Manufacturers | | | 3.1 | |
| Banks | | | 13.3 | |
| Chemicals | | | 0.6 | |
| Commercial Services | | | 0.7 | |
| Computers | | | 1.1 | |
| Distribution/Wholesale | | | 2.8 | |
| Diversified Financial Services | | | 0.7 | |
| Electric | | | 3.9 | |
| Electrical Components & Equipment | | | 0.2 | |
| Electronics | | | 3.6 | |
| Food | | | 6.8 | |
| Home Furnishings | | | 1.9 | |
| Insurance | | | 7.2 | |
| Iron/Steel | | | 1.4 | |
| Lodging | | | 1.2 | |
| Media | | | 2.0 | |
| Mining | | | 1.9 | |
| Miscellaneous Manufacturing | | | 2.1 | |
| Office/Business Equipment | | | 1.3 | |
| Oil & Gas | | | 4.6 | |
| Oil & Gas Services | | | 0.5 | |
| Pharmaceuticals | | | 9.5 | |
| Real Estate | | | 0.4 | |
| Retail | | | 2.7 | |
| Semiconductors | | | 2.4 | |
| Telecommunications | | | 15.0 | |
| Toys/Games/Hobbies | | | 1.1 | |
| Transportation | | | 2.2 | |
| Short-Term Investments | | | 1.6 | |
| Other Assets and Liabilities — Net | | | 1.5 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 22,040,959 | | | $ | — | | | $ | 22,040,959 | |
| Bermuda | | | 29,779,252 | | | | — | | | | — | | | | 29,779,252 | |
| Brazil | | | 31,536,090 | | | | — | | | | — | | | | 31,536,090 | |
| Canada | | | 81,547,788 | | | | — | | | | — | | | | 81,547,788 | |
| Finland | | | — | | | | 12,234,887 | | | | — | | | | 12,234,887 | |
| France | | | — | | | | 174,957,805 | | | | — | | | | 174,957,805 | |
| Germany | | | 35,576,135 | | | | 52,799,553 | | | | — | | | | 88,375,688 | |
| Hong Kong | | | — | | | | 39,618,589 | | | | — | | | | 39,618,589 | |
| Italy | | | — | | | | 45,694,387 | | | | — | | | | 45,694,387 | |
| Japan | | | 20,185,992 | | | | 403,705,604 | | | | — | | | | 423,891,596 | |
| Mexico | | | 10,191,863 | | | | — | | | | — | | | | 10,191,863 | |
| Netherlands | | | — | | | | 89,352,759 | | | | — | | | | 89,352,759 | |
| New Zealand | | | — | | | | 7,019,300 | | | | — | | | | 7,019,300 | |
| Portugal | | | — | | | | 15,668,651 | | | | — | | | | 15,668,651 | |
| Singapore | | | — | | | | 13,152,302 | | | | — | | | | 13,152,302 | |
| South Africa | | | — | | | | 11,472,809 | | | | — | | | | 11,472,809 | |
| South Korea | | | 4,414,006 | | | | 14,901,591 | | | | — | | | | 19,315,597 | |
| Spain | | | — | | | | 18,596,426 | | | | — | | | | 18,596,426 | |
| Sweden | | | — | | | | 14,707,948 | | | | — | | | | 14,707,948 | |
| Switzerland | | | — | | | | 74,091,376 | | | | — | | | | 74,091,376 | |
| United Kingdom | | | 25,470,503 | | | | 195,387,236 | | | | — | | | | 220,857,739 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 238,701,629 | | | | 1,205,402,182 | | | | — | | | | 1,444,103,811 | |
| | | | | | | | | | | | | | | | | |
| Preferred Stock | | | — | | | | 24,168,846 | | | | — | | | | 24,168,846 | |
| Short-Term Investments | | | 22,829,617 | | | | — | | | | 961,834 | | | | 23,791,451 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 261,531,246 | | | $ | 1,229,571,028 | | | $ | 961,834 | | | $ | 1,492,064,108 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 961,834 | | | $ | — | | | $ | 961,834 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 961,834 | | | $ | — | | | $ | 961,834 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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.
| |
| ˆ | 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 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
137
PORTFOLIO OF INVESTMENTS
ING International Value Choice Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 89.6% |
| | | | | | | |
| | | | | | | Australia: 2.2% |
| | 307,490 | | | | | Alumina Ltd. | | $ | 434,238 | |
| | 27,952 | | | | | Newcrest Mining Ltd. | | | 843,751 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,277,989 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 0.9% |
| | 14,089 | | | | | Belgacom S.A. | | | 494,795 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 494,795 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 1.7% |
| | 30,509 | | | | | Axis Capital Holdings Ltd. | | | 950,966 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 950,966 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 2.9% |
| | 45 | | | | | Centrais Eletricas Brasileiras S.A. | | | 638 | |
| | 42,489 | | | | | Centrais Eletricas Brasileiras SA ADR — Class B | | | 747,382 | |
| | 153,076 | | | | | Empresa Brasileira de Aeronautica SA | | | 909,694 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,657,714 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 10.2% |
| | 46,477 | | | | | Barrick Gold Corp. | | | 2,024,073 | |
| | 27,942 | | | @ | | Ivanhoe Mines Ltd. | | | 442,042 | |
| | 72,579 | | | @ | | Kinross Gold Corp. | | | 1,376,824 | |
| | 13,128 | | | @ | | Magna International, Inc. | | | 861,984 | |
| | 44,546 | | | | | Nexen, Inc. | | | 1,081,577 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,786,500 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.9% |
| | 89,931 | | | @ | | Nokia OYJ ADR | | | 1,093,561 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,093,561 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 8.7% |
| | 170,148 | | | @ | | Alcatel S.A. | | | 542,365 | |
| | 1,126 | | | | | Areva SA | | | 556,917 | |
| | 23,452 | | | | | Carrefour S.A. | | | 1,149,472 | |
| | 20,104 | | | @ | | Sanofi-Aventis | | | 1,371,467 | |
| | 6,416 | | | | | Societe Generale | | | 342,610 | |
| | 26,181 | | | | | Thales S.A. | | | 975,015 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,937,846 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 2.0% |
| | 11,490 | | | | | Siemens AG | | | 1,133,217 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,133,217 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 3.0% |
| | 34,228 | | | | | ERG S.p.A. | | | 470,678 | |
| | 1,090,036 | | | @ | | Telecom Italia S.p.A. RNC | | | 1,230,121 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,700,799 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 29.5% |
| | 91,600 | | | | | Coca-Cola West Holdings Co., Ltd. | | | 1,620,641 | |
| | 112,000 | | | | | Dai Nippon Printing Co., Ltd. | | | 1,551,623 | |
| | 31,300 | | | | | Fuji Photo Film Co., Ltd. | | | 1,072,698 | |
| | 40,800 | | | | | JS Group Corp. | | | 800,166 | |
| | 20,000 | | | | | Kao Corp. | | | 487,638 | |
| | 19,600 | | | | | Mabuchi Motor Co., Ltd. | | | 1,080,309 | |
| | 40,300 | | | | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 1,158,325 | |
| | 2,400 | | | | | Nintendo Co., Ltd. | | | 806,226 | |
| | 70,311 | | | | | Nippon Telegraph & Telephone Corp. ADR | | | 1,426,610 | |
| | 7,600 | | | | | Rohm Co., Ltd. | | | 563,236 | |
| | 64,000 | | | | | Sega Sammy Holdings, Inc. | | | 836,682 | |
| | 84,000 | | | | | Sekisui House Ltd. | | | 800,694 | |
| | 57,600 | | | | | Seven & I Holdings Co., Ltd. | | | 1,472,895 | |
| | 59,200 | | | | | Shiseido Co., Ltd. | | | 1,241,035 | |
| | 127,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 768,039 | |
| | 84,000 | | | | | Wacoal Holdings Corp. | | | 1,071,942 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,758,759 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 4.4% |
| | 29,317 | | | | | Royal Dutch Shell PLC ADR — Class B | | | 1,778,956 | |
| | 36,761 | | | | | Wolters Kluwer NV | | | 751,098 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,530,054 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 5.9% |
| | 36,209 | | | | | Anglogold Ashanti Ltd. ADR | | | 1,515,709 | |
| | 94,913 | | | | | Gold Fields Ltd. | | | 1,267,823 | |
| | 19,678 | | | | | Impala Platinum Holdings Ltd. | | | 554,823 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,338,355 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 4.5% |
| | 59,958 | | | | | Korea Electric Power Corp. ADR | | | 901,768 | |
| | 88,613 | | | | | SK Telecom Co., Ltd. ADR | | | 1,640,227 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,541,995 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 1.3% |
| | 48,818 | | | @ | | UBS AG — Reg | | | 752,774 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 752,774 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 10.5% |
| | 24,360 | | | | | AstraZeneca PLC | | | 1,076,392 | |
| | 25,689 | | | | | BP PLC ADR | | | 1,339,681 | |
| | 56,560 | | | | | GlaxoSmithKline PLC | | | 1,049,813 | |
| | 123,957 | | | | | Rexam PLC | | | 611,220 | |
| | 102,273 | | | | | United Utilities Group PLC | | | 836,932 | |
| | 483,481 | | | | | Vodafone Group PLC | | | 1,071,327 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,985,365 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $50,202,351) | | | 50,940,689 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 7.0% |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 7.0% |
| | 3,990,018 | | | | | ING Institutional Prime Money Market Fund — Class I | | | 3,990,018 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $3,990,018) | | | 3,990,018 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $54,192,369)* | | | 96.6 | % | | $ | 54,930,707 | |
| | | | | Other Assets and
Liabilities - Net | | | 3.4 | | | | 1,932,542 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 56,863,249 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| | | |
| * | | Cost for federal income tax purposes is $55,601,558. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 5,750,726 | |
| Gross Unrealized Depreciation | | | (6,421,577 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (670,851 | ) |
| | | | | |
See Accompanying Notes to Financial Statements
138
PORTFOLIO OF INVESTMENTS
ING International Value Choice Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 3.3 | % |
| Apparel | | | 1.9 | |
| Auto Parts & Equipment | | | 1.5 | |
| Banks | | | 3.3 | |
| Beverages | | | 2.8 | |
| Building Materials | | | 1.4 | |
| Commercial Services | | | 2.7 | |
| Cosmetics/Personal Care | | | 3.0 | |
| Electric | | | 2.9 | |
| Electronics | | | 1.9 | |
| Energy — Alternate Sources | | | 1.0 | |
| Food | | | 2.0 | |
| Home Builders | | | 1.4 | |
| Insurance | | | 3.7 | |
| Leisure Time | | | 1.5 | |
| Media | | | 1.3 | |
| Mining | | | 14.9 | |
| Miscellaneous Manufacturing | | | 3.9 | |
| Oil & Gas | | | 8.2 | |
| Packaging & Containers | | | 1.1 | |
| Pharmaceuticals | | | 6.2 | |
| Retail | | | 2.6 | |
| Semiconductors | | | 1.0 | |
| Telecommunications | | | 13.2 | |
| Toys/Games/Hobbies | | | 1.4 | |
| Water | | | 1.5 | |
| Short-Term Investments | | | 7.0 | |
| Other Assets and Liabilities — Net | | | 3.4 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Australia | | $ | — | | | $ | 1,277,989 | | | $ | — | | | $ | 1,277,989 | |
| Belgium | | | — | | | | 494,795 | | | | — | | | | 494,795 | |
| Bermuda | | | 950,966 | | | | — | | | | — | | | | 950,966 | |
| Brazil | | | 1,657,714 | | | | — | | | | — | | | | 1,657,714 | |
| Canada | | | 5,786,500 | | | | — | | | | — | | | | 5,786,500 | |
| Finland | | | 1,093,561 | | | | — | | | | — | | | | 1,093,561 | |
| France | | | — | | | | 4,937,846 | | | | — | | | | 4,937,846 | |
| Germany | | | — | | | | 1,133,217 | | | | — | | | | 1,133,217 | |
| Italy | | | — | | | | 1,700,799 | | | | — | | | | 1,700,799 | |
| Japan | | | 2,226,776 | | | | 14,531,983 | | | | — | | | | 16,758,759 | |
| Netherlands | | | 1,778,956 | | | | 751,098 | | | | — | | | | 2,530,054 | |
| South Africa | | | 1,515,709 | | | | 1,822,646 | | | | — | | | | 3,338,355 | |
| South Korea | | | 2,541,995 | | | | — | | | | — | | | | 2,541,995 | |
| Switzerland | | | 752,774 | | | | — | | | | — | | | | 752,774 | |
| United Kingdom | | | 1,339,681 | | | | 4,645,684 | | | | — | | | | 5,985,365 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 19,644,632 | | | | 31,296,057 | | | | — | | | | 50,940,689 | |
| | | | | | | | | | | | | | | | | |
| Short-Term Investments | | | 3,990,018 | | | | — | | | | — | | | | 3,990,018 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 23,634,650 | | | $ | 31,296,057 | | | $ | — | | | $ | 54,930,707 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| # | 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
139
PORTFOLIO OF INVESTMENTS
ING Russia Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 96.2% |
| | | | | | | |
| | | | | | | Airlines: 0.9% |
| | 1,800,000 | | | I | | Aeroflot — Russian International Airlines | | $ | 3,821,002 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,821,002 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Banks: 13.2% |
| | 1,339,000 | | | I | | Bank St. Petersburg BRD — Class S | | | 5,158,957 | |
| | 16,732,321 | | | | | Sberbank of Russian Federation | | | 45,177,267 | |
| | 1,752,200 | | | | | VTB Bank OJSC GDR | | | 9,344,243 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 59,680,467 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Beverages: 0.8% |
| | 104,500 | | | @ | | Central European Distribution Corp. | | | 3,620,925 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,620,925 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Building Materials: 0.5% |
| | 100,000 | | | @,I | | Sibirskiy Cement OAO | | | 2,425,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,425,000 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Chemicals: 1.5% |
| | 320,000 | | | @ | | Uralkali GDR | | | 6,815,836 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,815,836 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Coal: 0.9% |
| | 572,600 | | | | | Raspadskaya — Class S | | | 4,094,090 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,094,090 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Distribution/Wholesale: 0.2% |
| | 250,600 | | | @,I | | Protek | | | 977,340 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 977,340 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Electric: 13.0% |
| | 1,816,111,200 | | | @ | | Federal Grid Co Unified Energy System JSC | | | 22,758,125 | |
| | 53,769,600 | | | @,I | | Holding MRSK OAO | | | 8,468,712 | |
| | 20,000,000 | | | @ | | Mosenergo OAO | | | 2,398,740 | |
| | 99,532,300 | | | @,I | | OGK-2 OAO | | | 6,123,859 | |
| | 252,553,996 | | | @ | | RusHydro | | | 14,587,552 | |
| | 5,787,696,000 | | | @ | | Territorial Generating Co. 1 | | | 4,458,609 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 58,795,597 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Food: 3.6% |
| | 200,000 | | | @ | | Avangardco Investment GDR | | | 3,000,000 | |
| | 80,100 | | | | | Magnit OAO | | | 6,976,710 | |
| | 174,800 | | | @ | | X5 Retail Group N.V. GDR | | | 6,209,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,185,710 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Iron/Steel: 9.4% |
| | 241,100 | | | @,L | | Evraz Group SA GDR — Reg S | | | 8,694,978 | |
| | 832,100 | | | | | Mechel OAO ADR | | | 21,384,970 | |
| | 1,571,400 | | | | | Novolipetsk Steel | | | 5,729,393 | |
| | 500,000 | | | @,L | | Severstal GDR | | | 6,726,939 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 42,536,280 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Media: 0.9% |
| | 247,700 | | | @ | | CTC Media, Inc. | | | 4,183,653 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,183,653 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Metal Fabricate/Hardware: 0.8% |
| | 25,750 | | | I | | Vsmpo-Avisma Corp. | | | 3,448,668 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,448,668 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mining: 10.1% |
| | 96,000 | | | | | Kazakhmys PLC | | | 2,033,836 | |
| | 1,511,721 | | | @ | | MMC Norilsk Nickel ADR | | | 29,025,043 | |
| | 497,600 | | | @ | | Polymetal GDR | | | 5,224,800 | |
| | 381,500 | | | | | Polyus Gold Co. ZAO ADR | | | 9,541,315 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 45,824,994 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Oil & Gas: 28.5% |
| | 615,500 | | | @ | | Lukoil-Spon ADR | | | 35,329,700 | |
| | 311,200 | | | | | Novatek OAO GDR | | | 23,315,802 | |
| | 3,321,800 | | | L | | OAO Gazprom | | | 19,372,143 | |
| | 151,600 | | | @ | | OAO Gazprom ADR | | | 4,169,000 | |
| | 2,329,813 | | | @ | | OAO Rosneft Oil Co. GDR | | | 18,645,284 | |
| | 1,387,400 | | | L | | Surgutneftegaz ADR | | | 13,130,824 | |
| | 489,333 | | | | | Tatneft GDR | | | 14,754,511 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 128,717,264 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pharmaceuticals: 1.5% |
| | 246,865 | | | @ | | Pharmstandard — Reg S GDR | | | 6,904,894 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,904,894 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Real Estate: 0.9% |
| | 490,680 | | | @ | | LSR Group GDR | | | 4,155,423 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,155,423 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Telecommunications: 9.2% |
| | 568,400 | | | @ | | Comstar United Telesystems GDR | | | 3,716,287 | |
| | 350,000 | | | L | | Mobile Telesystems Finance SA ADR | | | 19,337,500 | |
| | 243,000 | | | @ | | Sistema JSFC GDR | | | 6,462,650 | |
| | 584,800 | | | @ | | VimpelCom Ltd. ADR | | | 10,187,216 | |
| | 612,800 | | | I | | VolgaTelecom | | | 2,124,144 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 41,827,797 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Transportation: 0.3% |
| | 6,060,000 | | | | | Novorossiysk Sea Trade Port BRD | | | 1,111,080 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,111,080 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $344,359,350) | | | 435,126,020 | |
| | | | | | | | | | | |
| |
HEDGE FUNDS: 0.4% |
| | | | | | | |
| | | | | | | Hedge Fund: 0.4% |
| | 636,687 | | | @,I,X | | RenShares Utilities Ltd. | | | 1,837,509 | |
| | | | | | | | | | | |
| | | | | | | Total Hedge Funds
(Cost $752,296) | | | 1,837,509 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.6% |
| | | | | | | |
| | | | | | | Banks: 0.4% |
| | 445,000 | | | I | | Bank St Petersburg OJSC | | | 1,714,515 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,714,515 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Oil & Gas: 1.2% |
| | 10,200,000 | | | | | Surgutneftegaz | | | 5,470,709 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,470,709 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $4,584,601) | | | 7,185,224 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $349,696,247) | | | 444,148,753 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
140
PORTFOLIO OF INVESTMENTS
ING Russia Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 4.3% |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 4.3% |
| | 18,727,737 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | | $ | 18,727,737 | |
| | 841,448 | | | I | | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | | | 673,158 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $19,569,185) | | | 19,400,895 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $369,265,432)* | | | 102.5 | % | | $ | 463,549,648 | |
| | | | | Other Assets and
Liabilities - Net | | | (2.5 | ) | | | (11,087,234 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 452,462,414 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| 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. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2010. |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
| | | |
| * | | Cost for federal income tax purposes is $370,286,809. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 113,456,899 | |
| Gross Unrealized Depreciation | | | (20,194,060 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 93,262,839 | |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs#
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | |
| Airlines | | $ | 3,821,002 | | | $ | — | | | $ | — | | | $ | 3,821,002 | |
| Banks | | | 50,336,224 | | | | 9,344,243 | | | | — | | | | 59,680,467 | |
| Beverages | | | 3,620,925 | | | | — | | | | — | | | | 3,620,925 | |
| Building Materials | | | 2,425,000 | | | | — | | | | — | | | | 2,425,000 | |
| Chemicals | | | — | | | | 6,815,836 | | | | — | | | | 6,815,836 | |
| Coal | | | 4,094,090 | | | | — | | | | — | | | | 4,094,090 | |
| Distribution/Wholesale | | | 977,340 | | | | — | | | | — | | | | 977,340 | |
| Electric | | | 21,449,920 | | | | 37,345,677 | | | | — | | | | 58,795,597 | |
| Food | | | 6,976,710 | | | | 9,209,000 | | | | — | | | | 16,185,710 | |
| Iron/Steel | | | 27,114,363 | | | | 15,421,917 | | | | — | | | | 42,536,280 | |
| Media | | | 4,183,653 | | | | — | | | | — | | | | 4,183,653 | |
| Metal Fabricate/Hardware | | | 3,448,668 | | | | — | | | | — | | | | 3,448,668 | |
| Mining | | | 43,791,158 | | | | 2,033,836 | | | | — | | | | 45,824,994 | |
| Oil & Gas | | | 58,870,843 | | | | 69,846,421 | | | | — | | | | 128,717,264 | |
| Pharmaceuticals | | | — | | | | 6,904,894 | | | | — | | | | 6,904,894 | |
| Real Estate | | | — | | | | 4,155,423 | | | | — | | | | 4,155,423 | |
| Telecommunications | | | 31,648,860 | | | | 10,178,937 | | | | — | | | | 41,827,797 | |
| Transportation | | | 1,111,080 | | | | — | | | | — | | | | 1,111,080 | |
| | | | | | | | | | | | | | | | | |
| Total Common Stock | | | 263,869,836 | | | | 171,256,184 | | | | — | | | | 435,126,020 | |
| | | | | | | | | | | | | | | | | |
| Hedge Funds | | | — | | | | — | | | | 1,837,509 | | | | 1,837,509 | |
| Preferred Stock | | | 7,185,224 | | | | — | | | | — | | | | 7,185,224 | |
| Short-Term Investments | | | 18,727,737 | | | | — | | | | 673,158 | | | | 19,400,895 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 289,782,797 | | | $ | 171,256,184 | | | $ | 2,510,667 | | | $ | 463,549,648 | |
| | | | | | | | | | | | | | | | | |
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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | Total
| | Total Unrealized
| | Transfers
| | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Realized
| | Appreciation/
| | Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Hedge Funds | | $ | 1,299,101 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 538,408 | | | $ | — | | | $ | — | | | $ | 1,837,509 | |
| Short-Term Investments | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 673,158 | | | | — | | | | 673,158 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 1,299,101 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 538,408 | | | $ | 673,158 | | | $ | — | | | $ | 2,510,667 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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 $538,408.
| |
| ˆ | 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 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
141
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
CORPORATE BONDS/NOTES: 28.9% |
| | | | | | | |
| | | | | | | Agriculture: 0.3% |
| $ | 900,000 | | | S | | Altria Group, Inc., 9.700%, due 11/10/18 | | $ | 1,133,562 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,133,562 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Apparel: 0.2% |
| | 750,000 | | | S | | Hanesbrands, Inc., 8.000%, due 12/15/16 | | | 787,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 787,500 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Banks: 4.4% |
| | 200,000 | | | S | | Bank of America Corp., 5.420%, due 03/15/17 | | | 198,646 | |
| | 1,177,000 | | | # | | Barclays Bank PLC, 6.050%, due 12/04/17 | | | 1,228,423 | |
| | 1,102,000 | | | # | | Barclays Bank PLC, 7.375%, due 06/29/49 | | | 1,079,960 | |
| | 636,000 | | | S | | BB&T Corp., 3.850%, due 07/27/12 | | | 664,530 | |
| | 140,000 | | | S | | Capital One Financial Corp., 7.375%, due 05/23/14 | | | 161,951 | |
| | 987,000 | | | S | | Citigroup, Inc., 5.000%, due 09/15/14 | | | 1,000,071 | |
| | 1,123,000 | | | S | | Citigroup, Inc., 6.010%, due 01/15/15 | | | 1,198,064 | |
| | 801,000 | | | S | | Citigroup, Inc., 8.500%, due 05/22/19 | | | 947,147 | |
| | 624,000 | | | S | | Discover Bank/Greenwood DE, 7.000%, due 04/15/20 | | | 642,276 | |
| | 651,000 | | | S | | Fifth Third Bancorp., 8.250%, due 03/01/38 | | | 720,320 | |
| | 1,183,000 | | | S | | First Tennessee Bank NA, 5.050%, due 01/15/15 | | | 1,159,433 | |
| | 1,982,000 | | | S | | Goldman Sachs Group, Inc., 5.375%, due 03/15/20 | | | 1,928,806 | |
| | 500,000 | | | S | | Goldman Sachs Group, Inc., 6.250%, due 09/01/17 | | | 524,094 | |
| | 250,000 | | | | | JP Morgan Chase Bank NA, 5.875%, due 06/13/16 | | | 269,769 | |
| | 1,085,000 | | | # | | Lloyds TSB Bank PLC, 5.800%, due 01/13/20 | | | 1,077,287 | |
| | 852,000 | | | S | | Morgan Stanley, 4.100%, due 01/26/15 | | | 843,077 | |
| | 1,486,000 | | | S | | Morgan Stanley, 7.300%, due 05/13/19 | | | 1,634,475 | |
| | 3,000 | | | S | | National City Corp., 6.875%, due 05/15/19 | | | 3,361 | |
| | 1,470,000 | | | S | | PNC Funding Corp., 5.125%, due 02/08/20 | | | 1,499,557 | |
| | 408,000 | | | S | | Wachovia Bank NA, 6.000%, due 11/15/17 | | | 443,143 | |
| | 851,000 | | | S | | Wachovia Bank NA, 6.600%, due 01/15/38 | | | 913,506 | |
| | 989,000 | | | S | | Wells Fargo Capital XIII, 7.700%, due 12/29/49 | | | 1,033,505 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,171,401 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Beverages: 0.5% |
| | 540,000 | | | # | | Anheuser-Busch InBev Worldwide, Inc., 5.375%, due 11/15/14 | | | 588,066 | |
| | 1,096,000 | | | S | | Diageo Capital PLC, 5.200%, due 01/30/13 | | | 1,192,148 | |
| | 469,000 | | | S | | PepsiCo, Inc., 7.900%, due 11/01/18 | | | 592,554 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,372,768 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Chemicals: 0.4% |
| | 473,000 | | | # | | Chevron Phillips Chemical Co. LLC, 8.250%, due 06/15/19 | | | 571,432 | |
| | 397,000 | | | S | | Dow Chemical Co., 7.600%, due 05/15/14 | | | 461,456 | |
| | 245,000 | | | # | | Nova Chemicals Corp., 8.375%, due 11/01/16 | | | 255,413 | |
| | 505,000 | | | # | | Nova Chemicals Corp., 8.625%, due 11/01/19 | | | 530,250 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,818,551 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Coal: 0.3% |
| | 750,000 | | | # | | Arch Coal, Inc., 8.750%, due 08/01/16 | | | 802,500 | |
| | 150,000 | | | # | | Consol Energy, Inc., 8.000%, due 04/01/17 | | | 159,188 | |
| | 150,000 | | | # | | Consol Energy, Inc., 8.250%, due 04/01/20 | | | 160,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,122,188 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Commercial Services: 0.3% |
| | 755,000 | | | S | | Service Corp. International, 7.000%, due 06/15/17 | | | 751,225 | |
| | 575,000 | | | &,# | | ServiceMaster Co, 10.750%, due 07/15/15 | | | 615,969 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,367,194 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Computers: 0.6% |
| | 65,000 | | | # | | Brocade Communications Systems, Inc., 6.625%, due 01/15/18 | | | 67,275 | |
| | 775,000 | | | # | | Brocade Communications Systems, Inc., 6.875%, due 01/15/20 | | | 804,063 | |
| | 150,000 | | | S | | Hewlett-Packard Co., 4.750%, due 06/02/14 | | | 163,695 | |
| | 576,000 | | | S | | Hewlett-Packard Co., 5.500%, due 03/01/18 | | | 641,642 | |
| | 281,000 | | | S | | International Business Machines Corp., 5.600%, due 11/30/39 | | | 293,291 | |
| | 505,000 | | | S | | Seagate Technology, Inc., 6.800%, due 10/01/16 | | | 515,100 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,485,066 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Diversified Financial Services: 2.7% |
| | 1,871,000 | | | S | | American Express Credit Corp., 5.125%, due 08/25/14 | | | 2,013,684 | |
| | 235,000 | | | S | | AngloGold Ashanti Holdings PLC, 5.375%, due 04/15/20 | | | 238,045 | |
| | 252,000 | | | S | | Capital One Bank USA NA, 6.500%, due 06/13/13 | | | 278,576 | |
| | 631,000 | | | S | | Capital One Bank USA NA, 8.800%, due 07/15/19 | | | 775,040 | |
| | 1,000,000 | | | S | | Capital One Capital V, 10.250%, due 08/15/39 | | | 1,206,250 | |
| | 1,600,000 | | | # | | Fibria Overseas Finance Ltd, 7.500%, due 05/04/20 | | | 1,608,800 | |
| | 870,000 | | | S | | Ford Motor Credit Co., LLC, 8.125%, due 01/15/20 | | | 923,304 | |
| | 220,000 | | | S | | General Electric Capital Corp., 6.000%, due 08/07/19 | | | 238,227 | |
| | 440,000 | | | S | | General Electric Capital Corp., 6.875%, due 01/10/39 | | | 490,711 | |
| | 619,000 | | | S | | International Lease Finance Corp., 6.625%, due 11/15/13 | | | 588,682 | |
See Accompanying Notes to Financial Statements
142
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Diversified Financial Services (continued) |
| $ | 216,000 | | | # | | International Lease Finance Corp., 8.625%, due 09/15/15 | | $ | 213,840 | |
| | 150,000 | | | S | | John Deere Capital Corp., 5.350%, due 04/03/18 | | | 163,130 | |
| | 206,000 | | | # | | LBI Escrow Corp., 8.000%, due 11/01/17 | | | 213,983 | |
| | 581,000 | | | S | | Merrill Lynch & Co., Inc., 6.050%, due 05/16/16 | | | 601,830 | |
| | 741,000 | | | S | | Merrill Lynch & Co., Inc., 6.875%, due 04/25/18 | | | 799,260 | |
| | 250,000 | | | # | | New Communications Holdings, Inc., 7.875%, due 04/15/15 | | | 259,375 | |
| | 1,148,000 | | | S | | SLM Corp., 8.000%, due 03/25/20 | | | 1,106,795 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,719,532 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Electric: 2.4% |
| | 750,000 | | | S | | AES Corp., 8.000%, due 10/15/17 | | | 776,250 | |
| | 426,000 | | | # | | Allegheny Energy Supply Co. LLC, 5.750%, due 10/15/19 | | | 423,351 | |
| | 114,000 | | | S | | Ameren Energy Generating Co., 6.300%, due 04/01/20 | | | 115,787 | |
| | 64,000 | | | S | | Commonwealth Edison Co., 4.700%, due 04/15/15 | | | 68,309 | |
| | 923,000 | | | S | | Commonwealth Edison Co., 6.150%, due 03/15/12 | | | 1,001,426 | |
| | 500,000 | | | # | | Dubai Electricity & Water Authority, 8.500%, due 04/22/15 | | | 516,406 | |
| | 9,000 | | | S | | Duke Energy Corp., 3.950%, due 09/15/14 | | | 9,360 | |
| | 438,000 | | | S | | Entergy Texas, Inc., 7.125%, due 02/01/19 | | | 497,068 | |
| | 264,000 | | | # | | Iberdrola Finance Ireland Ltd., 3.800%, due 09/11/14 | | | 268,057 | |
| | 728,000 | | | # | | Iberdrola Finance Ireland Ltd., 5.000%, due 09/11/19 | | | 715,376 | |
| | 430,000 | | | S | | Indiana Michigan Power, 7.000%, due 03/15/19 | | | 494,712 | |
| | 464,000 | | | S | | Metropolitan Edison, 7.700%, due 01/15/19 | | | 548,324 | |
| | 711,000 | | | S | | Nevada Power Co., 7.125%, due 03/15/19 | | | 824,331 | |
| | 252,000 | | | S | | Nisource Finance Corp., 6.125%, due 03/01/22 | | | 268,130 | |
| | 1,097,000 | | | S | | Nisource Finance Corp., 6.150%, due 03/01/13 | | | 1,199,392 | |
| | 677,000 | | | S | | Oncor Electric Delivery Co., 5.950%, due 09/01/13 | | | 743,856 | |
| | 527,000 | | | S | | Progress Energy, Inc., 6.050%, due 03/15/14 | | | 586,877 | |
| | 476,000 | | | S | | Southwestern Electric Power, 5.550%, due 01/15/17 | | | 504,975 | |
| | 874,000 | | | S | | Tampa Electric Co., 6.100%, due 05/15/18 | | | 958,944 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,520,931 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Electronics: 0.1% |
| | 355,000 | | | S | | Jabil Circuit, Inc., 7.750%, due 07/15/16 | | | 378,075 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 378,075 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Entertainment: 0.4% |
| | 740,000 | | | S | | AMC Entertainment, Inc., 8.750%, due 06/01/19 | | | 788,100 | |
| | 750,000 | | | # | | Pinnacle Entertainment, Inc., 8.625%, due 08/01/17 | | | 787,500 | |
| | 125,000 | | | S | | WMG Holdings Corp., 9.500%, due 12/15/14 | | | 127,188 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,702,788 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Food: 1.2% |
| | 215,000 | | | # | | Dole Food Co., Inc., 8.000%, due 10/01/16 | | | 223,600 | |
| | 857,000 | | | S | | Kraft Foods, Inc., 5.375%, due 02/10/20 | | | 890,580 | |
| | 466,000 | | | S | | Kraft Foods, Inc., 6.125%, due 02/01/18 | | | 515,561 | |
| | 500,000 | | | S | | Kraft Foods, Inc., 6.500%, due 08/11/17 | | | 567,347 | |
| | 1,319,000 | | | S | | Sara Lee Corp., 6.250%, due 09/15/11 | | | 1,400,279 | |
| | 555,000 | | | # | | Smithfield Foods, Inc., 10.000%, due 07/15/14 | | | 625,763 | |
| | 150,000 | | | S | | TreeHouse Foods, Inc., 7.750%, due 03/01/18 | | | 156,750 | |
| | 825,000 | | | S | | Tyson Foods, Inc., 7.850%, due 04/01/16 | | | 899,250 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,279,130 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Gas: 0.1% |
| | 554,000 | | | S | | Sempra Energy, 6.500%, due 06/01/16 | | | 630,679 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 630,679 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Healthcare — Products: 0.2% |
| | 715,000 | | | &,S | | Biomet, Inc., 10.375%, due 10/15/17 | | | 790,075 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 790,075 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Healthcare — Services: 0.2% |
| | 705,000 | | | &,S | | HCA, Inc., 9.625%, due 11/15/16 | | | 768,450 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 768,450 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Holding Companies — Diversified: 0.3% |
| | 665,000 | | | # | | Reynolds Group DL Escrow, Inc./Reynolds Group Escrow LLC, 7.750%, due 10/15/16 | | | 691,600 | |
| | 588,000 | | | # | | Voto-Votorantim Ltd, 6.750%, due 04/05/21 | | | 595,350 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,286,950 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Household Products/Wares: 0.2% |
| | 785,000 | | | S | | Kimberly-Clark Corp., 7.500%, due 11/01/18 | | | 976,949 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 976,949 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Insurance: 1.7% |
| | 1,201,000 | | | S | | Ace INA Holdings, Inc., 5.900%, due 06/15/19 | | | 1,326,185 | |
| | 850,000 | | | S | | Genworth Financial, Inc., 6.515%, due 05/22/18 | | | 858,639 | |
| | 857,000 | | | # | | Pacific Life Insurance Co., 9.250%, due 06/15/39 | | | 1,141,021 | |
| | 247,000 | | | # | | Pacific LifeCorp, 6.000%, due 02/10/20 | | | 251,078 | |
| | 219,000 | | | S | | Principal Financial Group, Inc., 7.875%, due 05/15/14 | | | 249,270 | |
| | 1,518,000 | | | S | | Protective Life Corp., 8.450%, due 10/15/39 | | | 1,708,167 | |
See Accompanying Notes to Financial Statements
143
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Insurance (continued) |
| $ | 506,000 | | | S | | Prudential Financial, Inc., 7.375%, due 06/15/19 | | $ | 597,011 | |
| | 1,072,000 | | | # | | Teachers Insurance & Annuity Association of America, 6.850%, due 12/16/39 | | | 1,212,846 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,344,217 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Investment Companies: 0.1% |
| | 231,000 | | | # | | Xstrata Finance Canada Ltd, 5.500%, due 11/16/11 | | | 242,939 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 242,939 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Iron/Steel: 0.2% |
| | 271,000 | | | S | | ArcelorMittal, 7.000%, due 10/15/39 | | | 292,644 | |
| | 585,000 | | | S | | Steel Dynamics, Inc., 7.750%, due 04/15/16 | | | 613,519 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 906,163 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Lodging: 0.5% |
| | 991,000 | | | # | | Hyatt Hotels Corp., 6.875%, due 08/15/19 | | | 1,027,981 | |
| | 210,000 | | | S | | Wyndham Worldwide Corp., 7.375%, due 03/01/20 | | | 217,223 | |
| | 735,000 | | | # | | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., 7.875%, due 11/01/17 | | | 753,375 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,998,579 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Machinery — Diversified: 0.1% |
| | 495,000 | | | # | | Case New Holland, Inc., 7.750%, due 09/01/13 | | | 523,463 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 523,463 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Media: 2.9% |
| | 530,000 | | | # | | Cablevision Systems Corp., 8.625%, due 09/15/17 | | | 561,800 | |
| | 1,040,000 | | | # | | Clear Channel Worldwide Holdings, Inc., 9.250%, due 12/15/17 | | | 1,116,750 | |
| | 700,000 | | | # | | Columbus International, Inc., 11.500%, due 11/20/14 | | | 772,660 | |
| | 675,000 | | | S | | Comcast Corp., 5.700%, due 05/15/18 | | | 726,424 | |
| | 76,000 | | | S | | Comcast Corp., 5.900%, due 03/15/16 | | | 83,699 | |
| | 250,000 | | | S | | Comcast Corp., 6.300%, due 11/15/17 | | | 277,518 | |
| | 718,000 | | | S | | Comcast Corp., 6.550%, due 07/01/39 | | | 762,316 | |
| | 751,000 | | | # | | COX Communications, Inc., 6.250%, due 06/01/18 | | | 821,295 | |
| | 700,000 | | | S | | DISH DBS Corp., 7.125%, due 02/01/16 | | | 714,000 | |
| | 460,000 | | | # | | Mediacom LLC / Mediacom Capital Corp., 9.125%, due 08/15/19 | | | 476,100 | |
| | 270,000 | | | # | | NBC Universal, Inc., 3.650%, due 04/30/15 | | | 272,885 | |
| | 744,000 | | | # | | NBC Universal, Inc., 5.150%, due 04/30/20 | | | 754,143 | |
| | 84,000 | | | # | | NBC Universal, Inc., 6.400%, due 04/30/40 | | | 87,035 | |
| | 397,000 | | | S | | News America, Inc., 6.150%, due 03/01/37 | | | 407,804 | |
| | 1,471,000 | | | S | | News America, Inc., 6.900%, due 03/01/19 | | | 1,695,482 | |
| | 159,000 | | | S | | Time Warner Cable, Inc., 6.200%, due 07/01/13 | | | 177,332 | |
| | 937,000 | | | S | | Time Warner Cable, Inc., 6.750%, due 06/15/39 | | | 1,016,154 | |
| | 303,000 | | | S | | Time Warner Cable, Inc., 8.750%, due 02/14/19 | | | 380,271 | |
| | 353,000 | | | S | | Time Warner, Inc., 5.500%, due 11/15/11 | | | 374,456 | |
| | 446,000 | | | S | | Time Warner, Inc., 7.700%, due 05/01/32 | | | 524,878 | |
| | 373,000 | | | S | | Viacom, Inc., 6.875%, due 04/30/36 | | | 409,197 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,412,199 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mining: 0.4% |
| | 304,000 | | | S | | Rio Tinto Finance USA Ltd., 8.950%, due 05/01/14 | | | 368,640 | |
| | 506,000 | | | S | | Southern Copper Corp., 5.375%, due 04/16/20 | | | 512,547 | |
| | 700,000 | | | S | | Teck Resources Ltd., 10.250%, due 05/15/16 | | | 847,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,728,187 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Miscellaneous Manufacturing: 0.4% |
| | 445,000 | | | # | | Bombardier, Inc., 7.500%, due 03/15/18 | | | 473,925 | |
| | 445,000 | | | # | | Bombardier, Inc., 7.750%, due 03/15/20 | | | 475,038 | |
| | 900,000 | | | S | | General Electric Co., 5.250%, due 12/06/17 | | | 958,742 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,907,705 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Office/Business Equipment: 0.1% |
| | 257,000 | | | S | | Xerox Corp., 4.250%, due 02/15/15 | | | 262,945 | |
| | 120,000 | | | S | | Xerox Corp., 5.625%, due 12/15/19 | | | 126,260 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 389,205 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Oil & Gas: 1.2% |
| | 116,000 | | | S | | Anadarko Petroleum Corp., 5.750%, due 06/15/14 | | | 127,564 | |
| | 265,000 | | | S | | ConocoPhillips, 5.750%, due 02/01/19 | | | 296,103 | |
| | 506,000 | | | S | | Hess Corp., 7.000%, due 02/15/14 | | | 581,860 | |
| | 521,000 | | | # | | KazMunaiGaz Finance Sub BV, 7.000%, due 05/05/20 | | | 518,452 | |
| | 1,000,000 | | | # | | KazMunaiGaz Finance Sub BV, 11.750%, due 01/23/15 | | | 1,265,000 | |
| | 915,000 | | | S | | Newfield Exploration Co., 6.875%, due 02/01/20 | | | 928,725 | |
| | 300,000 | | | S | | Petrobras International Finance Co., 7.875%, due 03/15/19 | | | 352,040 | |
| | 480,000 | | | S | | Pioneer Natural Resources Co., 7.500%, due 01/15/20 | | | 512,519 | |
| | 525,000 | | | S | | Plains Exploration & Production Co., 8.625%, due 10/15/19 | | | 557,813 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,140,076 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pharmaceuticals: 0.6% |
| | 207,000 | | | S | | Express Scripts, Inc., 6.250%, due 06/15/14 | | | 232,361 | |
| | 52,000 | | | S | | Express Scripts, Inc., 7.250%, due 06/15/19 | | | 61,584 | |
| | 428,000 | | | S | | Novartis Securities Investment Ltd., 5.125%, due 02/10/19 | | | 460,782 | |
| | 395,000 | | | S | | Omnicare, Inc., 6.750%, due 12/15/13 | | | 400,431 | |
See Accompanying Notes to Financial Statements
144
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Pharmaceuticals (continued) |
| $ | 455,000 | | | S | | Omnicare, Inc., 6.875%, due 12/15/15 | | $ | 457,275 | |
| | 790,000 | | | S | | Pfizer, Inc., 7.200%, due 03/15/39 | | | 983,769 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,596,202 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pipelines: 0.4% |
| | 411,000 | | | S | | Enbridge Energy Partners, 9.875%, due 03/01/19 | | | 544,968 | |
| | 246,000 | | | S | | Energy Transfer Partners, 9.700%, due 03/15/19 | | | 318,406 | |
| | 90,000 | | | S | | Trans-Canada Pipelines, 7.125%, due 01/15/19 | | | 107,797 | |
| | 99,000 | | | S | | Trans-Canada Pipelines, 7.625%, due 01/15/39 | | | 123,706 | |
| | 479,000 | | | S | | Transcontinental Gas Pipe Line Co. LLC, 6.050%, due 06/15/18 | | | 527,731 | |
| | 310,000 | | | # | | Williams Partners L.P., 5.250%, due 03/15/20 | | | 319,461 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,942,069 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Real Estate: 0.3% |
| | 397,000 | | | @,S | | ProLogis, 6.875%, due 03/15/20 | | | 393,775 | |
| | 312,000 | | | @,S | | ProLogis, 7.375%, due 10/30/19 | | | 324,829 | |
| | 726,000 | | | @,S | | Simon Property Group, Inc., 6.750%, due 05/15/14 | | | 812,035 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,530,639 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Retail: 1.2% |
| | 490,000 | | | S | | CVS Caremark Corp., 5.750%, due 06/01/17 | | | 537,293 | |
| | 1,104,000 | | | S | | CVS Caremark Corp., 6.125%, due 09/15/39 | | | 1,136,018 | |
| | 278,000 | | | S | | CVS Caremark Corp., 6.600%, due 03/15/19 | | | 317,743 | |
| | 1,485,000 | | | S | | Home Depot, Inc., 5.875%, due 12/16/36 | | | 1,490,866 | |
| | 625,000 | | | S | | Limited Brands, Inc., 8.500%, due 06/15/19 | | | 696,875 | |
| | 230,000 | | | # | | QVC, Inc., 7.500%, due 10/01/19 | | | 236,900 | |
| | 805,000 | | | # | | Toys R Us Property Co. I LLC, 10.750%, due 07/15/17 | | | 917,700 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,333,395 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Software: 0.1% |
| | 159,000 | | | S | | Oracle Corp., 5.250%, due 01/15/16 | | | 176,918 | |
| | 86,000 | | | S | | Oracle Corp., 5.750%, due 04/15/18 | | | 96,253 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 273,171 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Telecommunications: 3.9% |
| | 304,000 | | | S | | Alltel Corp., 7.000%, due 03/15/16 | | | 351,795 | |
| | 737,000 | | | S | | AT&T, Inc., 6.550%, due 02/15/39 | | | 792,782 | |
| | 681,000 | | | S | | AT&T, Inc., 6.700%, due 11/15/13 | | | 780,374 | |
| | 470,000 | | | S | | British Telecommunications PLC, 5.950%, due 01/15/18 | | | 494,024 | |
| | 419,000 | | | S | | Cellco Partnership / Verizon Wireless Capital, LLC, 3.750%, due 05/20/11 | | | 431,321 | |
| | 1,000,000 | | | S | | Cellco Partnership / Verizon Wireless Capital, LLC, 5.550%, due 02/01/14 | | | 1,101,939 | |
| | 489,000 | | | S | | Cisco Systems, Inc., 5.900%, due 02/15/39 | | | 514,497 | |
| | 250,000 | | | S | | Cricket Communications, Inc., 9.375%, due 11/01/14 | | | 259,688 | |
| | 655,000 | | | S | | Crown Castle International Corp., 7.125%, due 11/01/19 | | | 661,550 | |
| | 904,000 | | | S | | France Telecom S.A., 4.375%, due 07/08/14 | | | 967,216 | |
| | 1,048,000 | | | S | | France Telecom SA, 5.375%, due 07/08/19 | | | 1,131,285 | |
| | 387,000 | | | S | | France Telecom SA, 8.500%, due 03/01/31 | | | 526,619 | |
| | 705,000 | | | S | | Frontier Communications Corp., 8.125%, due 10/01/18 | | | 726,150 | |
| | 510,000 | | | # | | Intelsat Subsidiary Holding Co., Ltd., 8.875%, due 01/15/15 | | | 530,400 | |
| | 250,000 | | | S | | MetroPCS Wireless, Inc., 9.250%, due 11/01/14 | | | 260,625 | |
| | 250,000 | | | S | | Nextel Communications, Inc., 5.950%, due 03/15/14 | | | 240,000 | |
| | 295,000 | | | S | | Nokia OYJ, 5.375%, due 05/15/19 | | | 313,411 | |
| | 700,000 | | | S | | Qwest Communications International, Inc., 7.500%, due 02/15/14 | | | 715,750 | |
| | 500,000 | | | S | | Sprint Nextel Corp., 6.000%, due 12/01/16 | | | 463,750 | |
| | 409,000 | | | S | | Telecom Italia Capital SA, 6.175%, due 06/18/14 | | | 439,787 | |
| | 959,000 | | | S | | Telefonica Emisiones SAU, 5.134%, due 04/27/20 | | | 961,810 | |
| | 770,000 | | | S | | Telefonica Emisones SAU, 6.421%, due 06/20/16 | | | 860,767 | |
| | 239,000 | | | S | | TELUS Corp., 8.000%, due 06/01/11 | | | 256,736 | |
| | 376,000 | | | S | | Verizon Communications, Inc., 8.950%, due 03/01/39 | | | 520,266 | |
| | 565,000 | | | # | | Virgin Media Secured Finance PLC, 6.500%, due 01/15/18 | | | 570,650 | |
| | 1,280,000 | | | S | | Vodafone Group PLC, 5.450%, due 06/10/19 | | | 1,349,756 | |
| | 750,000 | | | S | | Windstream Corp., 7.875%, due 11/01/17 | | | 748,125 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,971,073 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Corporate Bonds/Notes
(Cost $115,636,653) | | | 125,551,071 | |
| | | | | | | | | | | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS: 11.2% |
| | | | | | | |
| | | | | | | Federal Home Loan Mortgage Corporation##: 7.4% |
| | 8,000,000 | | | S | | 3.000%, due 04/07/15 | | | 8,036,760 | |
| | 7,856,000 | | | S | | 3.125%, due 03/16/15 | | | 7,881,870 | |
| | 4,580,000 | | | S | | 3.250%, due 04/23/15 | | | 4,602,282 | |
| | 7,900,000 | | | S | | 4.340%, due 12/18/17 | | | 7,938,528 | |
| | 1,275,000 | | | W | | 5.000%, due 06/01/39 | | | 1,316,040 | |
| | 1,596,000 | | | W | | 5.500%, due 06/01/38 | | | 1,680,039 | |
| | 713,000 | | | W | | 6.000%, due 06/15/34 | | | 761,016 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 32,216,535 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Federal National Mortgage Association##: 3.6% |
| | 11,355,000 | | | W | | 4.500%, due 06/01/37 | | | 11,408,232 | |
| | 314,019 | | | S | | 5.000%, due 07/01/37 | | | 327,944 | |
| | 1,299,570 | | | S | | 5.500%, due 06/01/37-04/01/40 | | | 1,370,680 | |
| | 2,103,000 | | | W | | 6.000%, due 06/01/37 | | | 2,239,695 | |
| | 375,000 | | | W | | 6.500%, due 06/15/32 | | | 404,297 | |
| | 98,498 | | | S | | 7.116%, due 06/17/40 | | | 107,730 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,858,578 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
145
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Government National Mortgage Association: 0.2% |
| $ | 393,000 | | | W | | 5.000%, due 06/15/33 | | $ | 408,106 | |
| | 301,006 | | | S | | 5.500%, due 03/20/39 | | | 319,777 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 727,883 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $48,679,774) | | | 48,802,996 | |
| | | | | | | | | | | |
| |
U.S. TREASURY OBLIGATIONS: 7.0% |
| | | | | | | |
| | | | | | | U.S. Treasury Notes: 7.0% |
| | 3,927,000 | | | S | | 0.875%, due 02/29/12 | | | 3,926,552 | |
| | 4,178,000 | | | S | | 1.000%, due 03/31/12 | | | 4,184,376 | |
| | 5,127,000 | | | S | | 1.375%, due 03/15/13 | | | 5,116,982 | |
| | 666,000 | | | S | | 1.750%, due 04/15/13 | | | 671,099 | |
| | 167,000 | | | S | | 2.375%, due 02/28/15 | | | 167,131 | |
| | 838,000 | | | S | | 2.500%, due 03/31/15 | | | 842,321 | |
| | 4,390,000 | | | S | | 3.625%, due 02/15/20 | | | 4,377,655 | |
| | 11,544,000 | | | S | | 4.375%, due 11/15/39 | | | 11,257,201 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Treasury Obligations
(Cost $30,183,985) | | | 30,543,317 | |
| | | | | | | | | | | |
| |
ASSET-BACKED SECURITIES: 4.5% |
| | | | | | | |
| | | | | | | Automobile Asset-Backed Securities: 1.7% |
| | 1,599,000 | | | # | | Bank of America Auto Trust, 1.670%, due 12/15/13 | | | 1,611,501 | |
| | 585,000 | | | # | | Bank of America Auto Trust, 3.030%, due 10/15/16 | | | 603,030 | |
| | 596,000 | | | # | | Bank of America Auto Trust, 3.520%, due 06/15/16 | | | 621,192 | |
| | 628,000 | | | S | | CarMax Auto Owner Trust, 1.740%, due 04/15/14 | | | 632,168 | |
| | 423,000 | | | S | | CarMax Auto Owner Trust, 2.820%, due 12/15/14 | | | 430,923 | |
| | 275,000 | | | S | | Harley-Davidson Motorcycle Trust, 2.620%, due 03/15/14 | | | 280,254 | |
| | 552,000 | | | S | | Harley-Davidson Motorcycle Trust, 3.190%, due 11/15/13 | | | 565,573 | |
| | 367,000 | | | S | | Harley-Davidson Motorcycle Trust, 5.520%, due 11/15/13 | | | 383,291 | |
| | 305,000 | | | S | | Honda Auto Receivables Owner Trust, 1.250%, due 10/21/13 | | | 305,016 | |
| | 206,000 | | | S | | Honda Auto Receivables Owner Trust, 2.310%, due 05/15/13 | | | 209,570 | |
| | 224,000 | | | S | | Hyundai Auto Receivables Trust, 2.030%, due 08/15/13 | | | 227,113 | |
| | 286,000 | | | S | | Mercedes-Benz Auto Receivables Trust, 1.670%, due 01/15/14 | | | 288,730 | |
| | 209,000 | | | S | | Mercedes-Benz Auto Receivables Trust, 2.430%, due 03/15/16 | | | 212,919 | |
| | 1,060,000 | | | S | | Nissan Auto Receivables Owner Trust, 5.000%, due 09/15/14 | | | 1,101,936 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,473,216 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Credit Card Asset-Backed Securities: 2.1% |
| | 460,000 | | | S | | Chase Issuance Trust, 5.120%, due 10/15/14 | | | 499,097 | |
| | 2,900,000 | | | S | | Chase Issuance Trust, 5.160%, due 04/16/18 | | | 3,207,605 | |
| | 556,000 | | | S | | Citibank Credit Card Issuance Trust, 5.700%, due 05/15/13 | | | 575,286 | |
| | 2,246,000 | | | S | | Citibank Credit Card Issuance Trust, 6.950%, due 02/18/14 | | | 2,408,629 | |
| | 2,158,000 | | | S | | Discover Card Master Trust, 5.650%, due 03/16/20 | | | 2,426,616 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,117,233 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Home Equity Asset-Backed Securities: 0.3% |
| | 1,273,239 | | | S | | Ameriquest Mortgage Securities, Inc., 1.538%, due 08/25/33 | | | 1,108,639 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,108,639 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Other Asset-Backed Securities: 0.4% |
| | 1,818,449 | | | S | | CenterPoint Energy Transition Bond Co., LLC, 4.192%, due 02/01/20 | | | 1,944,551 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,944,551 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Asset-Backed Securities
(Cost $19,520,332) | | | 19,643,639 | |
| | | | | | | | | | | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS: 15.1% |
| | 1,523,611 | | | S | | Banc of America Funding Corp., 5.750%, due 10/25/35 | | | 1,336,799 | |
| | 1,720,000 | | | | | Bear Stearns Adjustable Rate Mortgage Trust, 3.268%, due 08/25/35 | | | 1,669,619 | |
| | 1,456,028 | | | S | | Bear Stearns Commercial Mortgage Securities, 5.286%, due 06/11/41 | | | 1,521,480 | |
| | 1,720,000 | | | S | | Citigroup Commercial Mortgage Trust, 5.888%, due 12/10/49 | | | 1,747,382 | |
| | 2,221,564 | | | # | | Citigroup Mortgage Loan Trust, Inc., 5.391%, due 11/19/35 | | | 2,073,524 | |
| | 306,000 | | | S | | Commercial Mortgage Asset Trust, 6.975%, due 01/17/32 | | | 335,232 | |
| | 23,000 | | | S | | Commercial Mortgage Pass-through Certificates, 4.715%, due 03/10/39 | | | 23,633 | |
| | 1,720,000 | | | S | | Commercial Mortgage Pass-through Certificates, 6.010%, due 12/10/49 | | | 1,772,414 | |
| | 230,000 | | | S | | Commercial Mortgage Pass-through Certificates, 6.010%, due 12/10/49 | | | 244,155 | |
| | 798,746 | | | S | | Countrywide Alternative Loan Trust, 5.500%, due 10/25/33 | | | 802,593 | |
| | 1,832,972 | | | S | | Countrywide Home Loan Mortgage Pass-through Trust, 3.671%, due 09/25/33 | | | 1,695,380 | |
| | 1,668,143 | | | S | | Countrywide Home Loan Mortgage Pass-through Trust, 5.000%, due 04/25/35 | | | 1,453,589 | |
| | 1,780,887 | | | S | | Countrywide Home Loan Mortgage Pass-through Trust, 5.500%, due 10/25/35 | | | 1,546,089 | |
| | 120,000 | | | S | | Credit Suisse First Boston Mortgage Securities Corp., 5.100%, due 08/15/38 | | | 127,456 | |
| | 923,000 | | | S | | GE Capital Commercial Mortgage Corp., 4.866%, due 05/10/43 | | | 965,431 | |
See Accompanying Notes to Financial Statements
146
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| $ | 3,854,664 | | | | | GMAC Mortgage Corp. Loan Trust, 5.391%, due 11/19/35 | | $ | 3,582,234 | |
| | 1,650,000 | | | S | | Greenwich Capital Commercial Funding Corp., 5.224%, due 04/10/37 | | | 1,678,527 | |
| | 1,500,000 | | | S | | Greenwich Capital Commercial Funding Corp., 5.441%, due 03/10/39 | | | 1,578,150 | |
| | 1,670,000 | | | S | | Greenwich Capital Commercial Funding Corp., 5.444%, due 03/10/39 | | | 1,678,871 | |
| | 1,600,000 | | | S | | Greenwich Capital Commercial Funding Corp., 5.736%, due 12/10/49 | | | 1,595,197 | |
| | 1,000,000 | | | S | | Greenwich Capital Commercial Funding Corp., 6.085%, due 07/10/38 | | | 1,082,595 | |
| | 1,590,000 | | | S | | Greenwich Capital Commercial Funding Corp., 6.085%, due 07/10/38 | | | 1,655,936 | |
| | 1,570,000 | | | S | | GS Mortgage Securities Corp. II, 5.560%, due 11/10/39 | | | 1,598,010 | |
| | 777,000 | | | # | | GSMS RR1JPA5.3739 9/17/39, 5.374%, due 05/17/45 | | | 813,898 | |
| | 75,003 | | | S | | JP Morgan Chase Commercial Mortgage Securities Corp., 4.853%, due 03/15/46 | | | 78,505 | |
| | 1,672,000 | | | S | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.336%, due 05/15/47 | | | 1,651,858 | |
| | 500,000 | | | S | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.344%, due 12/15/44 | | | 525,813 | |
| | 1,760,000 | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.399%, due 05/15/45 | | | 1,802,612 | |
| | 1,475,000 | | | S | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.833%, due 02/15/51 | | | 1,559,355 | |
| | 990,446 | | | S | | JP Morgan Mortgage Trust, 4.778%, due 07/25/35 | | | 964,088 | |
| | 1,042,287 | | | S | | JP Morgan Mortgage Trust, 4.952%, due 08/25/35 | | | 962,990 | |
| | 2,599,084 | | | S | | JP Morgan Mortgage Trust, 5.293%, due 07/25/35 | | | 2,554,389 | |
| | 1,545,000 | | | S | | LB-UBS Commercial Mortgage Trust, 5.197%, due 11/15/30 | | | 1,630,565 | |
| | 275,000 | | | S | | LB-UBS Commercial Mortgage Trust, 5.372%, due 09/15/39 | | | 280,951 | |
| | 1,301,000 | | | S | | LB-UBS Commercial Mortgage Trust, 5.403%, due 02/15/40 | | | 1,342,290 | |
| | 1,750,000 | | | S | | LB-UBS Commercial Mortgage Trust, 5.424%, due 02/15/40 | | | 1,732,018 | |
| | 1,525,000 | | | S | | LB-UBS Commercial Mortgage Trust, 5.437%, due 06/15/29 | | | 1,600,678 | |
| | 1,800,000 | | | S | | LB-UBS Commercial Mortgage Trust, 6.080%, due 06/15/38 | | | 1,903,080 | |
| | 698,125 | | | S | | LB-UBS Commercial Mortgage Trust, 6.324%, due 04/15/41 | | | 772,443 | |
| | 1,629,128 | | | S | | Lehman Mortgage Trust, 5.000%, due 12/25/35 | | | 1,443,065 | |
| | 1,159,938 | | | S | | Lehman Mortgage Trust, 6.420%, due 04/25/36 | | | 1,023,217 | |
| | 1,292,076 | | | # | | LVII Resecuritization Trust, 5.382%, due 11/27/37 | | | 1,321,148 | |
| | 760,000 | | | S | | Morgan Stanley Capital I, 5.178%, due 09/15/42 | | | 798,778 | |
| | 1,480,000 | | | # | | RBSCF Trust, 5.336%, due 05/16/47 | | | 1,482,081 | |
| | 556,195 | | | S | | Structured Asset Securities Corp., 2.535%, due 09/25/33 | | | 530,549 | |
| | 1,092,004 | | | S | | Thornburg Mortgage Securities Trust, 0.633%, due 09/25/44 | | | 1,053,606 | |
| | 1,830,000 | | | S | | Wachovia Bank Commercial Mortgage Trust, 5.308%, due 11/15/48 | | | 1,865,008 | |
| | 330,000 | | | | | Wachovia Bank Commercial Mortgage Trust, 5.997%, due 06/15/45 | | | 352,826 | |
| | 1,648,102 | | | S | | WaMu Mortgage Pass-Through Certificates, 5.228%, due 01/25/36 | | | 1,539,061 | |
| | 300,787 | | | S | | Wells Fargo Mortgage-Backed Securities Trust, 2.998%, due 10/25/35 | | | 278,525 | |
| | 2,015,000 | | | S | | Wells Fargo Mortgage-Backed Securities Trust, 5.297%, due 05/25/35 | | | 1,986,388 | |
| | | | | | | | | | | |
| | | | | | | Total Collateralized Mortgage Obligations
(Cost $62,479,701) | | | 65,614,081 | |
| | | | | | | | | | | |
| |
OTHER BONDS: 21.6% |
| | | | | | | |
| | | | | | | Foreign Government Bonds: 21.9% |
| | BRL 77,589,000 | | | S | | Brazil Notas do Tesouro Nacional Series F, 10.000%, due 01/01/12 | | | 43,106,252 | |
| | EUR 2,530,000 | | | S | | Bundesobligation, 4.000%, due 10/11/13 | | | 3,669,746 | |
| | EUR 5,000,000 | | | S | | Bundesrepublik Deutschland, 3.750%, due 01/04/19 | | | 7,111,782 | |
| | EUR 3,340,000 | | | S | | Bundesrepublik Deutschland, 4.250%, due 01/04/14 | | | 4,882,276 | |
| | EUR 4,400,000 | | | S | | Bundesrepublik Deutschland, 4.250%, due 07/04/39 | | | 6,457,161 | |
| | CAD 2,200,000 | | | S | | Canadian Government International Bond, 4.250%, due 06/01/18 | | | 2,286,046 | |
| $ | 5,147,000 | | | S | | Deutsche Bank AG, London-Republic of Indonesia Government International Bond Credit Linked Notes, 13.150%, due 01/25/12 | | | 5,309,285 | |
| | EUR 930,000 | | | S | | France Government International Bond, 3.250%, due 04/25/16 | | | 1,291,172 | |
| | JPY 500,000,000 | | | S | | Japan Government Ten Year Bond, 1.400%, due 12/20/11 | | | 5,428,844 | |
| | JPY 110,000,000 | | | S | | Japan Government Thirty Year Bond, 2.300%, due 03/20/39 | | | 1,208,763 | |
See Accompanying Notes to Financial Statements
147
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Foreign Government Bonds (continued) |
| | JPY 370,000,000 | | | S | | Japan Government Thirty Year Bond, 2.400%, due 09/20/38 | | $ | 4,149,290 | |
| | JPY 800,000,000 | | | S | | Japan Government Two Year Bond, 0.400%, due 03/15/11 | | | 8,534,744 | |
| | UYU 6,067,000 | | | S | | Uruguay Government International Bond, 4.250%, due 04/05/27 | | | 408,293 | |
| | | | | | | | | | | |
| | | | | | | Total Other Bonds
(Cost $90,378,034) | | | 93,843,654 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $366,878,479) | | | 383,998,758 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 12.5% |
| | | | | | | |
| | | | | | | Commercial Paper: 9.7% |
| $ | 6,000,000 | | | S | | ASB Finance Ltd., 0.210%, due 05/20/10 | | | 5,999,312 | |
| | 7,000,000 | | | | | Concord Minutemen Capital Co., LLC, 0.320%, due 06/23/10 | | | 6,996,592 | |
| | 7,000,000 | | | | | Crown Point Capital Co., 0.330%, due 06/24/10 | | | 6,996,466 | |
| | 2,000,000 | | | | | CVS Caremark Corp., 0.290%, due 05/12/10 | | | 1,999,807 | |
| | 3,654,000 | | | S | | Louis Dreyfus Corp., 0.260%, due 06/28/10 | | | 3,652,445 | |
| | 5,000,000 | | | | | Thunder Bay Funding, LLC, 0.230%, due 05/17/10 | | | 4,999,457 | |
| | 5,000,000 | | | | | Toronto-Dominion Bank, 0.260%, due 06/30/10 | | | 5,000,600 | |
| | 1,178,000 | | | | | Volkswagen AG, 0.300%, due 05/24/10 | | | 1,177,764 | |
| | 5,332,000 | | | | | Yorktown Capital, LLC, 0.250%, due 05/26/10 | | | 5,331,037 | |
| | | | | | | | | | | |
| | | | | | | Total Commercial Paper
(Cost $42,153,480) | | | 42,153,480 | |
| | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Affiliated Mutual Fund: 2.8% |
| | 12,076,000 | | | S | | ING Institutional Prime Money Market Fund — Class I | | $ | 12,076,000 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $12,076,000) | | | 12,076,000 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $54,229,480) | | | 54,229,480 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities | | | | | | | | |
| | | | | (Cost $421,107,959)* | | | 100.8 | % | | $ | 438,228,238 | |
| | | | | Other Assets and
Liabilities - Net | | | (0.8 | ) | | | (3,470,231 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 434,758,007 | |
| | | | | | | | | | | | | |
| | | |
| @ | | Non-income producing security |
| & | | 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. |
| ## | | 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. |
| BRL | | Brazilian Real |
| CAD | | Canadian Dollar |
| EUR | | EU Euro |
| JPY | | Japanese Yen |
| | | |
| * | | Cost for federal income tax purposes is $421,286,125. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 17,881,283 | |
| Gross Unrealized Depreciation | | | (939,170 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 16,942,113 | |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | | | | | |
| | | in Active Markets
| | Significant Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Corporate Bonds/Notes | | $ | — | | | $ | 125,551,071 | | | $ | — | | | $ | 125,551,071 | |
| U.S. Government Agency Obligations | | | — | | | | 48,802,996 | | | | — | | | | 48,802,996 | |
| U.S. Treasury Obligations | | | — | | | | 30,543,317 | | | | — | | | | 30,543,317 | |
| Asset-Backed Securities | | | — | | | | 19,643,639 | | | | — | | | | 19,643,639 | |
| Collateralized Mortgage Obligations | | | — | | | | 62,810,852 | | | | 2,803,229 | | | | 65,614,081 | |
| Foreign Government Bonds | | | — | | | | 88,534,369 | | | | 5,309,285 | | | | 93,843,654 | |
| Short-Term Investments | | | 12,076,000 | | | | 42,153,480 | | | | — | | | | 54,229,480 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 12,076,000 | | | $ | 418,039,724 | | | $ | 8,112,514 | | | $ | 438,228,238 | |
| | | | | | | | | | | | | | | | | |
Other Financial Instruments+: | | | | | | | | | | | | | | | | |
| Forward foreign currency contracts | | | — | | | | 2,169,723 | | | | — | | | | 2,169,723 | |
| Futures | | | 1,212,154 | | | | — | | | | — | | | | 1,212,154 | |
| Swaps, at value | | | — | | | | 288,215 | | | | — | | | | 288,215 | |
| | | | | | | | | | | | | | | | | |
| Total Assets | | $ | 13,288,154 | | | $ | 420,497,662 | | | $ | 8,112,514 | | | $ | 441,898,330 | |
| | | | | | | | | | | | | | | | | |
Liabilities Table | | | | | | | | | | | | | | | | |
Other Financial Instruments+: | | | | | | | | | | | | | | | | |
| Forward foreign currency contracts | | $ | — | | | $ | (3,678,642 | ) | | $ | — | | | $ | (3,678,642 | ) |
| Futures | | | (2,169,921 | ) | | | — | | | | — | | | | (2,169,921 | ) |
| Swaps, at value | | | — | | | | (92,352 | ) | | | — | | | | (92,352 | ) |
| | | | | | | | | | | | | | | | | |
| Total Liabilities | | $ | (2,169,921 | ) | | $ | (3,770,994 | ) | | $ | — | | | $ | (5,940,915 | ) |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
148
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 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 April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Beginning
| | | | | | Accrued
| | | | Total Unrealized
| | | | Transfers
| | Ending
|
| | | Balance
| | | | | | Discounts/
| | Total Realized
| | Appreciation/
| | Transfers Into
| | Out of
| | Balance
|
| | | 10/31/2009 | | Purchases | | Sales | | (Premiums) | | Gain/(Loss) | | (Depreciation) | | Level 3 | | Level 3 | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Collateralized Mortgage Obligations | | $ | 3,730,616 | | | $ | 1,482,082 | | | $ | (210,506 | ) | | $ | (8 | ) | | $ | — | | | $ | 29,079 | | | $ | — | | | $ | (2,228,034 | ) | | $ | 2,803,229 | |
| Foreign Government Bonds | | | 5,152,147 | | | | — | | | | — | | | | — | | | | — | | | | 157,138 | | | | — | | | | — | | | | 5,309,285 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 8,882,763 | | | $ | 1,482,082 | | | $ | (210,506 | ) | | $ | (8 | ) | | $ | — | | | $ | 186,217 | | | $ | — | | | $ | (2,228,034 | ) | | $ | 8,112,514 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of April 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 $191,365.
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| |
| + | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, 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. |
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.
At April 30, 2010 the following forward foreign currency contracts were outstanding for the ING Global Bond Fund:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | Unrealized
|
| | | | | Settlement
| | Exchange
| | | | Appreciation
|
Currency | | Buy/Sell | | Date | | For | | Value | | (Depreciation) |
| |
Australian Dollar
AUD 2,915,303 | | | BUY | | | | 5/21/10 | | | $ | 2,691,001 | | | $ | 2,690,916 | | | $ | (85 | ) |
Australian Dollar
AUD 5,119,692 | | | BUY | | | | 5/21/10 | | | | 4,740,000 | | | | 4,725,634 | | | | (14,366 | ) |
Canadian Dollar
CAD 2,835,239 | | | BUY | | | | 5/21/10 | | | | 2,837,552 | | | | 2,791,313 | | | | (46,239 | ) |
Canadian Dollar
CAD 6,561,352 | | | BUY | | | | 5/21/10 | | | | 6,555,000 | | | | 6,459,696 | | | | (95,304 | ) |
Canadian Dollar
CAD 8,858,524 | | | BUY | | | | 5/21/10 | | | | 8,852,000 | | | | 8,721,277 | | | | (130,723 | ) |
Canadian Dollar
CAD 1,913,057 | | | BUY | | | | 5/21/10 | | | | 1,884,000 | | | | 1,883,418 | | | | (582 | ) |
Swiss Franc
CHF 19,551,330 | | | BUY | | | | 5/7/10 | | | | 18,243,338 | | | | 18,169,582 | | | | (73,756 | ) |
Swiss Franc
CHF 2,856,779 | | | BUY | | | | 5/7/10 | | | | 2,702,000 | | | | 2,654,882 | | | | (47,118 | ) |
Swiss Franc
CHF 6,405,914 | | | BUY | | | | 5/7/10 | | | | 5,968,000 | | | | 5,953,190 | | | | (14,810 | ) |
Danish Krone
DKK 6,953,272 | | | BUY | | | | 5/7/10 | | | | 1,247,669 | | | | 1,243,821 | | | | (3,848 | ) |
EU Euro
EUR 32,783,479 | | | BUY | | | | 5/21/10 | | | | 44,415,549 | | | | 43,652,869 | | | | (762,680 | ) |
EU Euro
EUR 1,779,975 | | | BUY | | | | 5/21/10 | | | | 2,414,000 | | | | 2,370,127 | | | | (43,873 | ) |
EU Euro
EUR 1,267,916 | | | BUY | | | | 5/21/10 | | | | 1,675,000 | | | | 1,688,295 | | | | 13,295 | |
EU Euro
EUR 1,093,244 | | | BUY | | | | 5/21/10 | | | | 1,442,000 | | | | 1,455,710 | | | | 13,710 | |
EU Euro
EUR 22,266,737 | | | BUY | | | | 5/21/10 | | | | 29,446,000 | | | | 29,649,292 | | | | 203,292 | |
British Pound
GBP 15,820,682 | | | BUY | | | | 5/7/10 | | | | 24,098,474 | | | | 24,205,783 | | | | 107,309 | |
British Pound
GBP 1,407,545 | | | BUY | | | | 5/7/10 | | | | 2,148,000 | | | | 2,153,557 | | | | 5,557 | |
British Pound
GBP 535,173 | | | BUY | | | | 5/7/10 | | | | 817,000 | | | | 818,819 | | | | 1,819 | |
British Pound
GBP 766,720 | | | BUY | | | | 5/7/10 | | | | 1,178,000 | | | | 1,173,089 | | | | (4,911 | ) |
British Pound
GBP 1,938,397 | | | BUY | | | | 5/7/10 | | | | 2,978,000 | | | | 2,965,765 | | | | (12,235 | ) |
British Pound
GBP 6,710,443 | | | BUY | | | | 5/7/10 | | | | 10,342,000 | | | | 10,267,037 | | | | (74,963 | ) |
British Pound
GBP 455,581 | | | BUY | | | | 5/7/10 | | | | 705,000 | | | | 697,042 | | | | (7,958 | ) |
British Pound
GBP 2,550,741 | | | BUY | | | | 5/7/10 | | | | 3,941,000 | | | | 3,902,657 | | | | (38,343 | ) |
British Pound
GBP 1,028,384 | | | BUY | | | | 5/7/10 | | | | 1,570,000 | | | | 1,573,437 | | | | 3,437 | |
Indian Rupee
INR 248,712,000 | | | BUY | | | | 5/7/10 | | | | 5,584,014 | | | | 5,602,887 | | | | 18,873 | |
Japanese Yen
JPY 2,940,227,289 | | | BUY | | | | 5/21/10 | | | | 31,562,201 | | | | 31,306,840 | | | | (255,361 | ) |
Japanese Yen
JPY 370,664,449 | | | BUY | | | | 5/21/10 | | | | 3,941,000 | | | | 3,946,747 | | | | 5,747 | |
Japanese Yen
JPY 266,934,420 | | | BUY | | | | 5/21/10 | | | | 2,839,000 | | | | 2,842,254 | | | | 3,254 | |
Japanese Yen
JPY 345,602,893 | | | BUY | | | | 5/21/10 | | | | 3,674,000 | | | | 3,679,897 | | | | 5,897 | |
South Korean Won
KRW 17,050,028,450 | | | BUY | | | | 5/7/10 | | | | 15,166,096 | | | | 15,380,012 | | | | 213,916 | |
Mexican Peso
MXN 12,703,567 | | | BUY | | | | 5/21/10 | | | | 1,034,212 | | | | 1,029,473 | | | | (4,739 | ) |
Norwegian Krone
NOK 200,264,514 | | | BUY | | | | 5/7/10 | | | | 33,352,549 | | | | 33,937,468 | | | | 584,919 | |
Norwegian Krone
NOK 61,279,775 | | | BUY | | | | 5/7/10 | | | | 10,271,000 | | | | 10,384,667 | | | | 113,667 | |
Norwegian Krone
NOK 61,203,769 | | | BUY | | | | 5/7/10 | | | | 10,271,000 | | | | 10,371,787 | | | | 100,787 | |
Norwegian Krone
NOK 60,496,089 | | | BUY | | | | 5/7/10 | | | | 10,268,000 | | | | 10,251,861 | | | | (16,139 | ) |
Norwegian Krone
NOK 17,577,499 | | | BUY | | | | 5/7/10 | | | | 2,998,000 | | | | 2,978,739 | | | | (19,261 | ) |
Norwegian Krone
NOK 61,664,709 | | | BUY | | | | 5/7/10 | | | | 10,457,000 | | | | 10,449,900 | | | | (7,100 | ) |
Norwegian Krone
NOK 47,690,170 | | | BUY | | | | 5/7/10 | | | | 8,119,000 | | | | 8,081,729 | | | | (37,271 | ) |
Norwegian Krone
NOK 19,203,963 | | | BUY | | | | 5/7/10 | | | | 3,247,000 | | | | 3,254,365 | | | | 7,365 | |
New Zealand Dollar
NZD 12,392,354 | | | BUY | | | | 5/21/10 | | | | 8,820,890 | | | | 8,994,803 | | | | 173,913 | |
New Zealand Dollar
NZD 3,855,468 | | | BUY | | | | 5/21/10 | | | | 2,783,000 | | | | 2,798,433 | | | | 15,433 | |
Swedish Krona
SEK 73,848,277 | | | BUY | | | | 5/7/10 | | | | 10,262,000 | | | | 10,195,808 | | | | (66,192 | ) |
Swedish Krona
SEK 14,378,065 | | | BUY | | | | 5/7/10 | | | | 1,988,000 | | | | 1,985,097 | | | | (2,903 | ) |
Swedish Krona
SEK 26,216,652 | | | BUY | | | | 5/7/10 | | | | 3,658,000 | | | | 3,619,583 | | | | (38,417 | ) |
Swedish Krona
SEK 2,427,905 | | | BUY | | | | 5/7/10 | | | | 335,000 | | | | 335,207 | | | | 207 | |
Taiwan New Dollar
TWD 25,000,000 | | | BUY | | | | 5/7/10 | | | | 792,016 | | | | 798,574 | | | | 6,558 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (220,222 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Australian Dollar
AUD 16,419,183 | | | SELL | | | | 5/21/10 | | | $ | 15,269,232 | | | $ | 15,155,415 | | | $ | 113,817 | |
Australian Dollar
AUD 4,708,434 | | | SELL | | | | 5/21/10 | | | | 4,355,000 | | | | 4,346,031 | | | | 8,969 | |
Australian Dollar
AUD 917,002 | | | SELL | | | | 5/21/10 | | | | 838,000 | | | | 846,421 | | | | (8,421 | ) |
See Accompanying Notes to Financial Statements
149
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | Unrealized
|
| | | | | Settlement
| | Exchange
| | | | Appreciation
|
Currency | | Buy/Sell | | Date | | For | | Value | | (Depreciation) |
| |
Brazilian Real
BRL 77,444,245 | | | SELL | | | | 5/7/10 | | | | 43,830,576 | | | | 44,487,328 | | | | (656,752 | ) |
Canadian Dollar
CAD 3,140,259 | | | SELL | | | | 5/21/10 | | | | 3,141,000 | | | | 3,091,606 | | | | 49,394 | |
Canadian Dollar
CAD 751,844 | | | SELL | | | | 5/21/10 | | | | 745,000 | | | | 740,196 | | | | 4,804 | |
Canadian Dollar
CAD 4,777,452 | | | SELL | | | | 5/21/10 | | | | 4,752,000 | | | | 4,703,434 | | | | 48,566 | |
Swiss Franc
CHF 10,963,972 | | | SELL | | | | 5/7/10 | | | | 10,262,000 | | | | 10,189,117 | | | | 72,883 | |
Swiss Franc
CHF 6,483,195 | | | SELL | | | | 5/7/10 | | | | 6,037,000 | | | | 6,025,009 | | | | 11,991 | |
Swiss Franc
CHF 7,856,117 | | | SELL | | | | 5/7/10 | | | | 7,304,000 | | | | 7,300,903 | | | | 3,097 | |
Swiss Franc
CHF 8,472,021 | | | SELL | | | | 5/7/10 | | | | 7,826,000 | | | | 7,873,279 | | | | (47,279 | ) |
EU Euro
EUR 15,737,189 | | | SELL | | | | 5/21/10 | | | | 20,914,000 | | | | 20,954,867 | | | | (40,867 | ) |
EU Euro
EUR 390,951 | | | SELL | | | | 5/21/10 | | | | 523,000 | | | | 520,572 | | | | 2,428 | |
EU Euro
EUR 7,220,176 | | | SELL | | | | 5/21/10 | | | | 9,635,000 | | | | 9,614,031 | | | | 20,969 | |
British Pound
GBP 1,135,996 | | | SELL | | | | 5/7/10 | | | | 1,758,000 | | | | 1,738,084 | | | | 19,916 | |
British Pound
GBP 6,737,271 | | | SELL | | | | 5/7/10 | | | | 10,417,000 | | | | 10,308,084 | | | | 108,916 | |
British Pound
GBP 2,518,693 | | | SELL | | | | 5/7/10 | | | | 3,824,000 | | | | 3,853,622 | | | | (29,622 | ) |
British Pound
GBP 6,871,240 | | | SELL | | | | 5/7/10 | | | | 10,473,000 | | | | 10,513,058 | | | | (40,058 | ) |
Indonesian Rupiah
IDR 49,120,260,000 | | | SELL | | | | 5/7/10 | | | | 5,415,983 | | | | 5,442,770 | | | | (26,787 | ) |
Japanese Yen
JPY 65,684,969 | | | SELL | | | | 5/21/10 | | | | 706,000 | | | | 699,398 | | | | 6,602 | |
Japanese Yen
JPY 146,244,558 | | | SELL | | | | 5/21/10 | | | | 1,570,000 | | | | 1,557,177 | | | | 12,823 | |
South Korean Won
KRW 1,275,428,000 | | | SELL | | | | 5/7/10 | | | | 1,148,000 | | | | 1,150,502 | | | | (2,502 | ) |
South Korean Won
KRW 4,563,569,100 | | | SELL | | | | 5/7/10 | | | | 4,083,000 | | | | 4,116,577 | | | | (33,577 | ) |
Norwegian Krone
NOK 61,313,603 | | | SELL | | | | 5/7/10 | | | | 10,226,000 | | | | 10,390,400 | | | | (164,400 | ) |
Norwegian Krone
NOK 61,143,964 | | | SELL | | | | 5/7/10 | | | | 10,226,000 | | | | 10,361,652 | | | | (135,652 | ) |
Norwegian Krone
NOK 38,173,019 | | | SELL | | | | 5/7/10 | | | | 6,397,500 | | | | 6,468,922 | | | | (71,422 | ) |
Norwegian Krone
NOK 38,180,709 | | | SELL | | | | 5/7/10 | | | | 6,397,500 | | | | 6,470,225 | | | | (72,725 | ) |
Norwegian Krone
NOK 61,468,561 | | | SELL | | | | 5/7/10 | | | | 10,417,000 | | | | 10,416,660 | | | | 340 | |
Norwegian Krone
NOK 61,555,886 | | | SELL | | | | 5/7/10 | | | | 10,417,000 | | | | 10,431,458 | | | | (14,458 | ) |
Norwegian Krone
NOK 85,143,282 | | | SELL | | | | 5/7/10 | | | | 14,336,000 | | | | 14,428,654 | | | | (92,654 | ) |
Norwegian Krone
NOK 10,052,200 | | | SELL | | | | 5/7/10 | | | | 1,684,000 | | | | 1,703,478 | | | | (19,478 | ) |
New Zealand Dollar
NZD 1,096,417 | | | SELL | | | | 5/21/10 | | | | 778,000 | | | | 795,818 | | | | (17,818 | ) |
New Zealand Dollar
NZD 14,764,996 | | | SELL | | | | 5/21/10 | | | | 10,417,000 | | | | 10,716,949 | | | | (299,949 | ) |
New Zealand Dollar
NZD 4,713,862 | | | SELL | | | | 5/21/10 | | | | 3,350,000 | | | | 3,421,485 | | | | (71,485 | ) |
New Zealand Dollar
NZD 1,877,230 | | | SELL | | | | 5/21/10 | | | | 1,349,000 | | | | 1,362,559 | | | | (13,559 | ) |
Swedish Krona
SEK 16,090,466 | | | SELL | | | | 5/7/10 | | | | 2,224,036 | | | | 2,221,518 | | | | 2,518 | |
Swedish Krona
SEK 8,638,919 | | | SELL | | | | 5/7/10 | | | | 1,209,000 | | | | 1,192,726 | | | | 16,274 | |
Swedish Krona
SEK 74,968,993 | | | SELL | | | | 5/7/10 | | | | 10,417,000 | | | | 10,350,539 | | | | 66,461 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (1,288,697 | ) |
| | | | | | | | | | | | | | | | | | | | | |
ING Global Bond Fund Open Futures Contracts on April 30, 2010:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Unrealized
|
| | | Number
| | Expiration
| | Market
| | Appreciation/
|
| Contract Description | | of Contracts | | Date | | Value | | (Depreciation) |
| |
Long Contracts | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Australia 3-Year Bond | | | 288 | | | | 06/15/10 | | | $ | 27,115,549 | | | $ | (170,544 | ) |
Australia 10-Year Bond | | | 84 | | | | 06/15/10 | | | | 7,936,529 | | | | (101,348 | ) |
Canada 10-Year Bond | | | 35 | | | | 06/21/10 | | | | 4,057,492 | | | | (10,560 | ) |
| Euro-Bund | | | 204 | | | | 06/08/10 | | | | 33,911,272 | | | | 571,501 | |
| Euro-Schatz | | | 320 | | | | 06/08/10 | | | | 46,521,982 | | | | 244,108 | |
Japan 10-Year Bond (TSE) | | | 8 | | | | 06/10/10 | | | | 11,895,886 | | | | 32,096 | |
| Long Gilt | | | 70 | | | | 06/28/10 | | | | 12,417,645 | | | | 334,700 | |
| Short Gilt | | | 80 | | | | 06/28/10 | | | | 13,151,154 | | | | 29,749 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | $ | 157,007,509 | | | $ | 929,702 | |
| | | | | | | | | | | | | | | | | |
Short Contracts | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Euro-Bobl 5-Year | | | 30 | | | | 06/08/10 | | | $ | 4,719,729 | | | $ | (48,350 | ) |
| Medium Gilt | | | 58 | | | | 06/28/10 | | | | 10,133,605 | | | | (144,480 | ) |
U.S. Treasury 2-Year Note | | | 215 | | | | 06/30/10 | | | | 46,779,296 | | | | (128,912 | ) |
U.S. Treasury 10-Year Note | | | 352 | | | | 06/21/10 | | | | 41,503,000 | | | | (579,614 | ) |
| U.S. Treasury Long Bond | | | 317 | | | | 06/21/10 | | | | 37,742,812 | | | | (986,113 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | $ | 140,878,442 | | | $ | (1,887,469 | ) |
| | | | | | | | | | | | | | | | | |
Credit Default Swap Agreements Outstanding on April 30, 2010:
Credit Default Swaps on Corporate and Sovereign Issues — Buy Protection(1)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | (Pay)/
| | | | | | | | Upfront
| | |
| | | Reference
| | | | Receive
| | | | | | | | Payment
| | Unrealized
|
| | | Entity/
| | Buy/Sell
| | Fixed
| | Termination
| | Notional
| | Market
| | Paid/
| | Appreciation
|
Counterparty | | Obligation | | Protection | | Rate (%) | | Date | | Amount(2) | | Value(3) | | (Received) | | (Depreciation) |
| The Royal Bank of Scotland PLC | | Japanese Government Bond, 2.000%, 03/21/22 | | | Buy | | | | (0.610 | ) | | | 12/20/14 | | | | 9,000,000 | | | $ | 15,604 | | | $ | — | | | $ | 15,604 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | $ | 15,604 | | | $ | — | | | $ | 15,604 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (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) | | 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. |
| |
| (3) | | The market 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 market 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. |
See Accompanying Notes to Financial Statements
150
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
Cross-Currency Swap Agreements Outstanding on April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Notional
| | | | | | | | | | | | |
| | | Notional
| | Amount on
| | | | | | | | | | | | |
| | | Amount on
| | Floating
| | | | | | | | | | | | |
| | | Fixed Rate
| | Rate
| | | | | | | | | | Upfront
| | |
| | | (Currency
| | (Currency
| | Floating
| | Fixed
| | Termination
| | Market
| | Payment
| | Unrealized
|
Counterparty | | Received) | | Delivered) | | Rate | | Rate | | Date | | Value | | Paid (Received) | | Appreciation |
| |
| Deutsche Bank AG | | | TRY 14,850,000 | | | | USD 10,000,000 | | | | 3-month USD-LIBOR-BBA | | | | 10.35 | % | | | 04/26/15 | | | $ | 12,341 | | | $ | — | | | $ | 12,341 | |
| Deutsche Bank AG | | | TRY 14,760,000 | | | | USD 10,000,000 | | | | 3-month USD-LIBOR-BBA | | | | 10.45 | % | | | 04/26/15 | | | | 36,823 | | | | — | | | | 36,823 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 49,164 | | | $ | — | | | $ | 49,164 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Rate Swap Agreements Outstanding on April 30, 2010:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | Upfront
| | |
| | | | | | | Notional
| | | | Payment
| | Unrealized
|
| | | Termination
| | | | Principal
| | Market
| | Paid
| | Appreciation/
|
| | | Date | | | | Amount | | Value | | (Received) | | (Depreciation) |
| |
Receive a fixed rate equal to 1.990% and pay a floating rate based on 3-month CAD-BA-CDOR Counterparty: Deutsche Bank AG | | | 04/09/12 | | | | CAD | | | | 25,000,000 | | | $ | 34,185 | | | $ | — | | | $ | 34,185 | |
Receive a fixed rate equal to 2.213% and pay a floating rate based on 3-month CAD-BA-CDOR Counterparty: Deutsche Bank AG | | | 04/20/12 | | | | CAD | | | | 40,000,000 | | | | (92,352 | ) | | | — | | | | (92,352 | ) |
Receive a fixed rate equal to 6.610% and pay a floating rate based on 28-day MXN-TIIE-Banxico Counterparty: Goldman Sachs International | | | 03/06/13 | | | | MXN | | | | 171,500,000 | | | | 101,522 | | | | — | | | | 101,522 | |
Receive a fixed rate equal to 3.893% and pay a floating rate based on 3-month CAD-BA-CDOR Counterparty: Deutsche Bank AG | | | 04/09/20 | | | | CAD | | | | 8,000,000 | | | | 31,671 | | | | — | | | | 31,671 | |
Receive a fixed rate equal to 4.020% and pay a floating rate based on 3-month CAD-BA-CDOR Counterparty: Deutsche Bank AG | | | 04/20/20 | | | | CAD | | | | 4,000,000 | | | | 56,069 | | | | — | | | | 56,069 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 131,095 | | | $ | — | | | $ | 131,095 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of April 30, 2010 was as follows:
| | | | | | | |
Derivatives not accounted for
| | | | |
as hedging instruments
| | Location on Statement
| | |
under FASB ASC 815 | | of Assets and Liabilities | | Fair Value |
| |
Asset Derivatives | | | | | | |
| | | | | | | |
| Foreign exchange contracts | | Unrealized appreciation on forward foreign currency contracts | | $ | 2,169,723 | |
| Credit contracts | | Unrealized appreciation on swap agreements, net of upfront payments | | | 15,604 | |
| Foreign exchange contracts | | Unrealized appreciation on swap agreements, net of upfront payments | | | 49,164 | |
| Interest rate contracts | | Unrealized appreciation on swap agreements, net of upfront payments | | | 223,447 | |
| Interest rate contracts | | Net Assets — Unrealized appreciation* | | | 1,212,154 | |
| | | | | | | |
Total Asset Derivatives | | | | $ | 3,670,092 | |
| | | | | | | |
Liability Derivatives | | | | | | |
| | | | | | | |
| Foreign exchange contracts | | Unrealized depreciation on forward foreign currency contracts | | $ | 3,678,642 | |
| Interest rate contracts | | Unrealized depreciation on swap agreements, net of upfront payments | | | 92,352 | |
| Interest rate contracts | | Net Assets — Unrealized depreciation* | | | 2,169,921 | |
| | | | | | | |
Total Liability Derivatives | | | | $ | 5,940,915 | |
| | | | | | | |
| |
| * | 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 April 30, 2010 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Derivatives not accounted for
| | Amount of Realized Gain or (Loss) on Derivatives Recognized in Income |
as hedging instruments
| | | | Forward Foreign
| | | | | | Written
| | |
under FASB ASC 815 | | Investments* | | Currency Contracts | | Futures | | Swaps | | Options | | Total |
| |
| Credit contracts | | $ | — | | | $ | — | | | $ | — | | | | (68,490 | ) | | $ | — | | | $ | (68,490 | ) |
| Equity contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Foreign exchange contracts | | | (217,223 | ) | | | (8,663,238 | ) | | | — | | | | — | | | | 320,304 | | | | (8,560,157 | ) |
| Interest rate contracts | | | — | | | | — | | | | 1,180,291 | | | | 1,137,494 | | | | — | | | | 2,317,785 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | (217,223 | ) | | $ | (8,663,238 | ) | | $ | 1,180,291 | | | $ | 1,069,004 | | | $ | 320,304 | | | $ | (6,310,862 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
151
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2010 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Change in Unrealized Appreciation or (Depreciation)
|
Derivatives not accounted for
| | on Derivatives Recognized in Income |
as hedging instruments
| | | | Forward Foreign
| | | | | | Written
| | |
under FASB ASC 815 | | Investments* | | Currency Contracts | | Futures | | Swaps | | Options | | Total |
| |
| Credit contracts | | $ | — | | | $ | — | | | $ | — | | | $ | 72,315 | | | $ | — | | | $ | 72,315 | |
| Equity contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Foreign exchange contracts | | | 111,023 | | | | (1,202,240 | ) | | | — | | | | 49,164 | | | | — | | | | (1,042,053 | ) |
| Interest rate contracts | | | — | | | | — | | | | (679,906 | ) | | | 102,870 | | | | 2,311 | | | | (574,725 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 111,023 | | | $ | (1,202,240 | ) | | $ | (679,906 | ) | | $ | 224,349 | | | $ | 2,311 | | | $ | (1,544,463 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| * | Amounts recognized for purchased options are included in net realized gain (loss) on investments and net change in unrealized appreciation or depreciation on investments. |
See Accompanying Notes to Financial Statements
152
PORTFOLIO OF INVESTMENTS
ING Diversified International Fund
as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
AFFILIATED INVESTMENT COMPANIES: 99.0% |
| | 1,669,198 | | | @ | | ING Emerging Countries Fund — Class I | | $ | 44,417,354 | |
| | 2,356,543 | | | | | ING Foreign Fund — Class I | | | 32,284,636 | |
| | 2,101,764 | | | | | ING Index Plus International Equity Fund — Class I | | | 16,624,953 | |
| | 4,646,975 | | | | | ING International Capital Appreciation Fund — Class I | | | 44,657,430 | |
| | 1,309,015 | | | | | ING International Real Estate Fund — Class I | | | 10,485,211 | |
| | 625,432 | | | | | ING International SmallCap Multi-Manager Fund — Class I | | | 21,664,972 | |
| | 2,119,303 | | | | | ING International Value Choice Fund — Class I | | | 21,934,783 | |
| | 1,840,738 | | | | | ING International Value Fund — Class I | | | 20,892,374 | |
| | | | | | | | | | | |
| | | | | Total Investments in Affiliated Investment Companies | | | | |
| | | | | (Cost $207,904,169)* | | | 99.0 | % | | $ | 212,961,713 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.0 | | | | 2,135,849 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 215,097,562 | |
| | | | | | | | | | | | | |
| | | |
| | | |
| @ | | Non-income producing security |
| | | |
| * | | Cost for federal income tax purposes is $240,267,238. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 14,041,807 | |
| Gross Unrealized Depreciation | | | (8,984,263 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 5,057,544 | |
| | | | | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of April 30, 2010 in valuing the Fund’s assets and liabilities:
| | | | | | | | | | | | | | | | | |
| | | Quoted Prices
| | Significant
| | | | |
| | | in Active Markets
| | Other
| | Significant
| | |
| | | for Identical
| | Observable
| | Unobservable
| | Fair Value
|
| | | Investments
| | Inputs
| | Inputs
| | at
|
| | | (Level 1) | | (Level 2) | | (Level 3) | | 4/30/2010 |
| |
| |
Asset Table | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | |
| Affiliated Investment Companies | | $ | 212,961,713 | | | $ | — | | | $ | — | | | $ | 212,961,713 | |
| | | | | | | | | | | | | | | | | |
| Total Investments, at value | | $ | 212,961,713 | | | $ | — | | | $ | — | | | $ | 212,961,713 | |
| | | | | | | | | | | | | | | | | |
| |
| ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
153
Board Consideration and Re-Approval of Investment Advisory and Sub-Advisory Contracts
Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”) provides that, after an initial period, the Funds’ existing investment advisory and sub-advisory contracts will remain in effect only if the Board of Trustees (the “Board”) of ING Mutual Funds and ING Mayflower Trust (together, the “Trust”), including a majority of Board members who have no direct or indirect interest in the advisory and sub-advisory contracts, and who are not “interested persons” of the Funds, as such term is defined under the 1940 Act (the “Independent Trustees”), annually review and approve them. Thus, at a meeting held on November 12, 2009, the Board, including a majority of the Independent Trustees, considered whether to renew the investment advisory contracts (the “Advisory Contracts”) between ING Investments, LLC (the “Adviser”) and the sub-advisory contracts (“Sub-Advisory Contracts”) with the sub-adviser to each Fund (each a “Sub-Adviser” and collectively, the “Sub-Advisers”).
The Independent Trustees also held separate meetings on October 13 and November 10, 2009 to consider the renewal of the Advisory Contracts and Sub-Advisory Contracts. As a result, subsequent references herein to factors considered and determinations made by the Independent Trustees include, as applicable, factors considered and determinations made on those earlier dates by the Independent Trustees.
At its November 12, 2009 meeting, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Funds. In reaching these decisions, the Board took into account information furnished to it throughout the year at regular meetings of the Board and the Board’s committees, as well as information prepared specifically in connection with the annual renewal process. Determinations by the Independent Trustees also took into account various factors that they believed, in light of the legal advice furnished to them by K&L Gates LLP (“K&L Gates”), their independent legal counsel, and their own business judgment, to be relevant. Further, while the Advisory Contracts and Sub-Advisory Contracts for all the ING Funds were considered at the same Board meeting, the Trustees considered each Fund’s advisory and sub-advisory relationships separately.
Provided below is an overview of the Board’s contract approval process in general, as well as a discussion of certain specific factors that the Board considered at its renewal meeting. While the Board gave its attention to the information furnished, at its request, that was most relevant to its considerations, discussed below are a number of the primary factors relevant to the Board’s consideration as to whether to renew the Advisory and Sub-Advisory Contracts for the one-year period ending November 30, 2010. Each Board member may have accorded different weight to the various factors in reaching his or her conclusions with respect to each Fund’s advisory and sub-advisory arrangements.
Overview of the Contract Renewal and Approval Process
Several years ago, the Independent Trustees instituted a revised process by which they seek and consider relevant information when they decide whether to approve new or existing advisory and sub-advisory arrangements for the investment companies in the ING Funds complex under their jurisdiction, including the Funds’ existing Advisory and Sub-Advisory Contracts. Among other actions, the Independent Trustees: retained the services of independent consultants with experience in the mutual fund industry to assist the Independent Trustees in working with the personnel employed by the Adviser or its affiliates who administer the Funds (“Management”) to identify the types of information presented to the Board to inform its deliberations with respect to advisory and sub-advisory relationships and to help evaluate that information; established a specific format in which certain requested information is provided to the Board; and determined the process for reviewing such information in connection with Advisory and Sub-Advisory Contract renewals and approvals. The end result was an enhanced process which is currently employed by the Independent Trustees to review and analyze information in connection with their annual renewal of the ING Funds’ advisory and sub-advisory contracts, as well as their review and approval of new advisory relationships.
Since the current renewal and approval process was first implemented, the Board’s membership has changed substantially through periodic retirements of some Trustees and the appointment and election of new Trustees. In addition, throughout this period the Independent Trustees have reviewed and refined the renewal and approval process at least annually. The Board also established a Contracts Committee and two Investment Review Committees (“IRCs”). Among other matters, the Contracts Committee provides oversight
154
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
with respect to the contracts renewal process, and each Fund is assigned to an IRC, which provides oversight regarding, among other matters, investment performance.
The type and format of the information provided to the Board or to legal counsel for the Independent Trustees in connection with the contract approval and renewal process has been codified in the ING Funds’ 15(c) Methodology Guide. This Guide was developed under the direction of the Independent Trustees and sets out a blueprint pursuant to which the Independent Trustees request certain information that they deem important to facilitate an informed review in connection with initial and annual approvals of advisory and sub-advisory contracts.
Management provides certain of the information requested by the 15(c) Methodology Guide in Fund Analysis and Comparison Tables (“FACT sheets”) prior to the Independent Trustees’ review of advisory and sub-advisory arrangements (including the Funds’ Advisory and Sub-Advisory Contracts). The Independent Trustees previously retained an independent firm to verify and test the accuracy of certain FACT sheet data for a representative sample of funds in the ING Funds complex. In addition, in 2007, 2008 and 2009 the Contracts Committee employed the services of an independent consultant to assist in its review and analysis of, among other matters, the 15(c) Methodology Guide, the content and format of the FACT sheets, and proposed selected peer groups of investment companies (“SPGs”) to be used by the Funds for certain comparison purposes during the renewal process.
As part of an ongoing process, the Contracts Committee recommends or considers recommendations from Management for refinements to the 15(c) Methodology Guide and other aspects of the review process, and the IRC reviews benchmarks used to assess the performance of the funds in the ING Funds complex. The IRCs may apply a heightened level of scrutiny in cases where performance has lagged an ING Fund’s relevant benchmark and/or SPG.
The Board employed its process for reviewing contracts when considering the renewals of the Funds’ Advisory and Sub-Advisory Contracts that would be effective through November 30, 2010. Set forth below is a discussion of many of the Board’s primary considerations and conclusions resulting from this process.
Nature, Extent and Quality of Service
In determining whether to approve the Advisory and Sub-Advisory Contracts for the Funds for the year ending November 30, 2010, the Independent Trustees received and evaluated such information as they deemed necessary regarding the nature, extent and quality of services provided to the Funds by the Adviser and Sub-Advisers. This included information regarding the Adviser and Sub-Advisers provided throughout the year at regular meetings of the Board and its committees, as well as information furnished in connection with the contract renewal meetings.
The materials requested by and provided to the Board and/or to K&L Gates prior to the November 12, 2009 Board meeting included, among other information, the following items for each Fund: (1) FACT sheets that provided information regarding the performance and expenses of the Fund and other similarly managed funds in its SPG, as well as information regarding the Fund’s investment portfolio, objective and strategies; (2) reports providing risk and attribution analyses of the Fund; (3) the 15(c) Methodology Guide, which describes how the FACT sheets were prepared, including the manner in which each Fund’s benchmark and SPG were selected and how profitability was determined; (4) responses from the Adviser and relevant Sub-Adviser or Sub-Advisers to a series of questions posed by K&L Gates on behalf of the Trustees; (5) copies of the forms of Advisory and Sub-Advisory Contracts; (6) copies of the Forms ADV for the Adviser and Sub-Advisers; (7) financial statements for the Adviser and Sub-Adviser; (8) a draft of a narrative summary addressing key factors the Board customarily considers in evaluating the renewals of the ING Funds’ (including the Funds’) advisory contracts and sub-advisory contracts, including a written analysis for each Fund of how performance, fees and expenses compare to its SPG and/or designated benchmark; (9) independent analyses of Fund performance by the Trust’s Chief Investment Risk Officer; (10) information regarding net asset flows into and out of the Fund; and (11) other information relevant to the Board’s evaluations.
For each Fund Class A shares were used for purposes of certain comparisons to the funds in its SPG. Class A shares generally were selected so that the Fund’s share class with the longest performance history was compared to the analogous class of shares for each
155
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
fund in its SPG. The mutual funds included in the Funds’ SPGs were selected based upon criteria designed to mirror the Fund share class being compared to the SPG.
In arriving at its conclusions with respect to the Advisory Contracts, the Board was mindful of the “manager-of-managers” platform of the ING Funds that has been developed by Management. The Board also considered the techniques that the Adviser has developed, at the Board’s direction, to screen and perform due diligence on the Sub-Advisers that are recommended to the Board to manage the investment portfolios of the funds in the ING Funds complex. The Board noted the resources that the Adviser has committed to the Board and the IRCs to assist the Board and the IRCs with their assessment of the investment performance of the funds in the ING Funds Complex (including the Funds) on an ongoing basis throughout the year. This includes the appointment of a Chief Investment Risk Officer and his staff, who report directly to the Board and who have developed attribution analyses and other metrics used by the IRCs to analyze the key factors underlying investment performance for the funds in the ING Funds complex.
The Board also noted the techniques used by the Adviser to monitor the performance of the Sub-Advisers and the proactive approach that the Adviser, working in cooperation with the IRCs, has taken to advocate or recommend, when it believed appropriate, changes designed to assist in improving the Funds’ performance.
In considering the Funds’ Advisory Contracts, the Board also considered the extent of benefits provided to the Funds’ shareholders, beyond advisory services, from being part of the ING family of funds. This includes, in most cases, the right to exchange or transfer investments, without a sales charge, between the same class of shares of such funds or among ING Funds available on a product platform, and the wide range of ING Funds available for exchange or transfer. The Board also took into account the Adviser’s efforts in recent years to reduce the expenses of the ING Funds through renegotiated arrangements with the ING Funds’ service providers. In addition, the Board considered the efforts of the Adviser and the expenses that it incurred in recent years to help make the ING Funds complex more efficient by combinations of similar funds.
Further, the Board received periodic reports showing that the investment policies and restrictions for each Fund were consistently complied with and other periodic reports covering matters such as compliance by Adviser and Sub-Adviser personnel with codes of ethics. The Board considered reports from the Trust’s Chief Compliance Officer (“CCO”) evaluating whether the regulatory compliance systems and procedures of the Adviser and each Sub-Adviser are reasonably designed to assure compliance with the federal securities laws, including those related to, among others, late trading and market timing, best execution, fair value pricing, proxy voting and trade allocation practices. The Board also took into account the CCO’s annual and periodic reports and recommendations with respect to service provider compliance programs. In this regard, the Board also considered the policies and procedures developed by the CCO in consultation with the Board’s Compliance Committee that guide the CCO’s compliance oversight function.
The Board reviewed the level of staffing, quality and experience of each Fund’s portfolio management team. The Board took into account the respective resources and reputations of the Adviser and Sub-Advisers, and evaluated the ability of the Adviser and the Sub-Advisers to attract and retain qualified investment advisory personnel. The Board also considered the adequacy of the resources committed to the Funds (and other relevant funds in the ING Funds complex) by the Adviser and Sub-Advisers, and whether those resources are commensurate with the needs of the Funds and are sufficient to sustain appropriate levels of performance and compliance needs. In this regard, the Board considered the financial stability of the Adviser and the Sub-Advisers.
Based on their deliberations and the materials presented to them, the Board concluded that the advisory and related services provided by the Adviser and each Sub-Adviser are appropriate in light of the Funds’ operations, the competitive landscape of the investment company business, and investor needs, and that the nature and quality of the overall services provided by the Adviser and the Sub-Advisers were appropriate.
Fund Performance
In assessing advisory and sub-advisory relationships, the Board placed emphasis on the net investment returns of each Fund. While the Board considered the performance reports and discussions with portfolio managers at Board and committee
156
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
meetings during the year, particular attention in assessing performance was given to the FACT sheets furnished in connection with the renewal process. The FACT sheet prepared for each Fund included its investment performance compared to the Fund’s Morningstar category median and/or Lipper category median, SPG and primary benchmark. The FACT sheet performance data was as of June 30, 2009. In addition, the Board also considered at its November 12, 2009 meeting certain additional data regarding performance and Fund asset levels as of September 30, 2009. The Board’s findings specific to each Fund’s performance are discussed under “Fund-by-Fund Analysis” below.
Economies of Scale
When evaluating the reasonableness of advisory fee rates, the Board also considered whether economies of scale will be realized by the Adviser and Sub-Adviser as a Fund grows larger and the extent to which any such economies are reflected in contractual fee rates. In this regard, the Board noted any breakpoints in advisory fee schedules that will result in a lower advisory fee rate when a Fund achieves sufficient asset levels to receive a breakpoint discount. In the case of sub-advisory fees, the Board considered that breakpoints would inure to the benefit of the Adviser, except to the extent that there are corresponding advisory fee breakpoints or waivers. For a Fund that did not have advisory fee breakpoints, but did benefit from waivers or reimbursements of advisory or other fees, the Board also considered the extent to which economies of scale could be realized through waivers, reimbursements or expense reductions.
In evaluating economies of scale, the Independent Trustees also considered prior periodic management reports and industry information on this topic, and the Independent Trustees who were Board members at that time also considered a November 2006 evaluation and analysis presented to them by an independent consultant regarding fee breakpoint arrangements and economies of scale.
The Board also considered that many of the Funds have experienced material declines in assets due to general market declines precipitated by the credit crises and other generally adverse market developments. As a result of these asset declines, the Board considered that there were fewer opportunities to realize economies of scale.
Information Regarding Services to Other Clients
The Board requested and considered information regarding the nature of services and fee rates offered by the Adviser and Sub-Advisers to other clients, including other registered investment companies and institutional accounts. When fee rates offered to other clients differed materially from those charged to the Funds, the Board considered any underlying rationale provided by the Adviser or a Sub-Adviser for these differences.
For unaffiliated Sub-Advisers, the Board did not view this information as being a key factor in its deliberations because of the arms-length nature of negotiations between the Adviser and unaffiliated Sub-Advisers with respect to sub-advisory fee rates. The Board also noted that the fee rates charged to the Funds and other institutional clients of the Adviser or a Sub-Adviser (including other investment companies) may differ materially due to, among other reasons: differences in services; different regulatory requirements associated with registered investment companies, such as the Funds, as compared to non-registered investment company clients; market differences in fee rates that existed when a Fund first was organized; differences in the original sponsors of Funds that now are managed by the Adviser; investment capacity constraints that existed when certain contracts were first agreed upon or that might exist at present; and different pricing structures that are necessary to be competitive in different marketing channels.
Fee Rates and Profitability
The Board reviewed and considered each contractual investment advisory fee rate, combined with the administrative fee rate, payable by each Fund to the Adviser. The Board also considered the contractual sub-advisory fee rate payable by the Adviser to each Sub-Adviser for sub-advisory services for each Fund. In addition, the Board considered fee waivers and expense limitations applicable to the fees payable by the Funds.
The Board considered: (1) the fee structure of each Fund as it relates to the services provided under the contracts; and (2) the potential fall-out benefits to the Adviser and the Sub-Advisers and their respective affiliates from their association with the Funds. For each Fund, the Board determined that the fees payable to the Adviser and the Sub-Advisers are reasonable for the services that each performs, which
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were considered in light of the nature and quality of the services that each has performed and is expected to perform.
For each Fund, the Board considered information on revenues, costs and profits realized by the Adviser, which was prepared by Management in accordance with the allocation methodology (including related assumptions) specified in the 15(c) Methodology Guide. In analyzing the profitability of the Adviser in connection with its services to a Fund, the Board took into account the sub-advisory fee rate payable by the Adviser to each Sub-Adviser. The Board also considered information that it requested and was provided by Management with respect to the profitability of service providers affiliated with the Adviser, as well as information provided by certain Sub-Advisers with respect to their profitability. In the case of non-affiliated Sub-Advisers, the Board gave less weight to profitability considerations, or did not view this data as imperative to its deliberations, given the arm’s-length nature of the relationship between the Adviser and these Sub-Advisers with respect to the negotiation of sub-advisory fee rates. Further, the Board considered that the decline in asset levels of many Funds caused by recent adverse economic conditions was likely to cause a similar decline in any profits realized by the Adviser and Sub-Advisers.
The Board recognized that analysis of the Adviser’s and affiliated Sub-Adviser’s profitability is not an exact science and there is no uniform methodology for determining profitability for this purpose. In this context, the Board realized that Management’s calculations regarding its costs incurred in establishing the infrastructure necessary for the Funds’ operations may not be fully reflected in the expenses allocated to each Fund in determining profitability, and that the information presented may not portray all of the costs borne by Management or capture Management’s entrepreneurial risk associated with offering and managing a mutual fund complex in the current regulatory and market environment. In addition, the Board recognized that the use of different methodologies for purposes of calculating profit data can give rise to dramatically different profit and loss results.
At the request of the Board, the Adviser has from time to time agreed to implement remedial actions for certain Funds. These remedial actions have included, among others: reductions in fee rates; changes in Sub-Advisers or portfolio managers; and strategy modifications.
In making its determinations, the Board based its conclusions on the reasonableness of the advisory and sub-advisory fees of the Adviser and affiliated Sub-Adviser primarily on the factors described for each Fund below.
Fund-by-Fund Analysis
The following paragraphs outline certain of the specific factors that the Board considered, and the conclusions reached, at its November 12, 2009 meeting in relation to renewing each Fund’s current Advisory and Sub-Advisory Contracts for the year ending November 30, 2010. These specific factors are in addition to those considerations discussed above. In each case, the Fund’s performance was compared to its Morningstar category median and its primary benchmark, a broad-based securities market index that appears in the Fund’s prospectus. With respect to Morningstar quintile rankings, the first quintile represents the highest (best) performance and the fifth quintile represents the lowest performance. Each Fund’s management fee and expense ratio were compared to the fees and expense ratios of the funds in its SPG.
ING Asia-Pacific Real Estate Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Asia-Pacific Real Estate Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented; (2) the Fund underperformed its primary benchmark for the most recent calendar quarter and year-to-date periods, but outperformed for the one-year period; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for all periods presented.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to achieve a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the
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management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
In analyzing this fee data, the Board took into account that the Adviser is operating the Fund at a loss. The Board also took into consideration Management’s representations that the Fund’s expense ratio and management fee are higher due to the sub-advisory fee rate that reflects the Fund’s regional focus and the Sub-Adviser’s reputation and skill in managing real estate assets.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Diversified International Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Diversified International Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented; (2) the Fund underperformed its primary benchmark for all periods presented; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the most recent calendar quarter, the second quintile for the year-to-date period, and the third quintile for the one-year and three-year periods.
In analyzing this performance data, the Board took into account that in August 2009, the membership of the Fund’s Asset Allocation Committee changed.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is below the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Emerging Countries Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Emerging Countries Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund underperformed its Morningstar category median for all periods presented; (2) the Fund underperformed its primary benchmark for all periods presented; and (3) the Fund is ranked in the third quintile of its Morningstar category for the year-to-date period, the fourth quintile for the most recent calendar quarter and one-year periods, and the fifth (lowest) quintile for the three-year, five-year and ten-year periods.
In analyzing this performance data, the Board took into account that: (1) in June 2008, there was a change in the Sub-Adviser of the Fund to address the Board’s concerns regarding the Fund’s investment performance; and (2) Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance.
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In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
In analyzing this fee data, the Board took into account that the Fund’s expense ratio is limited by an expense cap.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) taking into account that the Fund’s Sub-Adviser changed in June 2008, the Board will permit the Fund to establish a longer performance record for purposes of evaluating performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING European Real Estate Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING European Real Estate Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund underperformed its Morningstar category median for all periods presented; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the most recent calendar quarter, during which it underperformed; and (3) the Fund is ranked in the third quintile of its Morningstar category for the year-to-date period, the fourth quintile for the one-year period, and the fifth (lowest) quintile for the most recent calendar quarter.
In analyzing this performance data, the Board took into account: (1) Management’s representations regarding the detrimental effect that the Fund’s focus on European securities had on its investment performance, relative to the comparable performance of the Fund’s SPG; and (2) that Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to achieve a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
In analyzing this fee data, the Board took into account that the Adviser is operating the Fund at a loss. The Board also took into consideration Management’s representations that the Fund’s expense ratio and management fee are higher due to the sub-advisory fee rate that reflects the Fund’s regional focus and the Sub-Adviser’s reputation and skill in managing real estate assets.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
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ING Foreign Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Foreign Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund underperformed its Morningstar category median for all periods presented, with the exception of the five-year period, during which it outperformed; (2) the Fund underperformed its primary benchmark for all periods presented; and (3) the Fund is ranked in the second quintile of its Morningstar category for the five-year period, the fourth quintile for the three-year period, and the fifth (lowest) quintile for the most recent calendar quarter, year-to-date, and one-year periods.
In analyzing this performance data, the Board took into account: (1) Management’s analysis regarding the effect that the Sub-Adviser’s investment approach and defensive positioning had on the Fund’s performance as compared to its primary benchmark and SPG; (2) in February 2009, Management implemented a change in the Fund’s investment strategy; and (3) that Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to reach a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) taking into account Management’s analysis of the Fund’s underperformance and that Management changed the Fund’s investment strategy in February 2009, a longer performance record would be warranted for purposes of evaluating performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
Board Consideration and Approval of New Sub-Advisory Contract for ING Foreign Fund
The ING Foreign Fund had been sub-advised by Artio Global Management, LLC or its predecessor company Julius Baer Investment Management, Inc. (“Artio”) since its inception in July 2003. The significant rise in the use of wrap programs since the Fund’s inception, however, has placed Artio’s proprietary mutual fund (the “Artio Fund”) in direct competition with the Fund resulting in the Fund’s diminished appeal as a select vehicle for financial advisors. The Board noted that this had the potential to adversely affect the Fund’s ability to attract and retain assets. At a meeting of the Board held on March 25, 2010, the Board, including a majority of the Independent Trustees, determined to: (1) terminate Artio as sub-adviser to the Fund following a notice period; (2) appoint ING Investment Management Advisors, B.V. (“IIM BV”) as sub-adviser to the Fund; and (3) approve a Sub-Advisory Contract with IIM BV under which it would serve as Sub-Adviser to the Portfolio. The Sub-Advisory Contract is expected become effective on or about June 30, 2010.
In determining whether to approve the Sub-Advisory Contract with IIM BV, the Board received and evaluated such information as it deemed necessary for an informed determination of whether the Sub-Advisory Contract should be approved for the Fund. The materials provided to the Board to inform its consideration of whether to approve the Sub-Advisory Contract with IIM BV included the following: (1) IIM BV’s presentation before the International/Balanced/Fixed Income IRC at its March 24, 2010 meeting; (2) memoranda and related materials provided to the Board in advance of its March 25, 2010 meeting discussing: (a) Management’s rationale for recommending that IIM BV serve as Sub-Adviser to the Portfolio, (b) the performance of IIM BV in managing the ING (L) Invest Global Opportunities Fund (“IIM BV Global Opportunities Fund”), an actively managed open-
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ended collective investment Fund with an inception date of June 30, 2001, which is currently offered in Europe (with such performance being compared against relevant benchmark indices and Morningstar Category averages), and (c) IIM BV’s considerable firm-wide resources, investment philosophy, and the firm’s overall investment process; (3) Fact Analysis and Comparison Tables for the Fund that provide information about the performance of the IIM BV Global Opportunities Fund and the performance of the Fund’s proposed SPG; (4) IIM BV’s responses to inquiries from K&L Gates LLP, counsel to the Independent Trustees; (5) supporting documentation, including copies of the forms of the Sub-Advisory Contract with IIM BV; and (6) other information relevant to the Board’s evaluation.
In reaching its decision to engage IIM BV as Sub-Adviser to the Fund, the Board, including a majority of the Independent Trustees, considered a number of factors, including, but not limited to, the following: (1) Managements representations regarding the competitive challenges to the Fund resulting from direct competition with the Artio Fund; (2) the Adviser’s view with respect to the reputation of IIM BV as a manager to similar portfolios; (3) IIM BV’s strength and reputation in the industry; (4) the nature and quality of the services to be provided by IIM BV under the proposed Sub-Advisory Contract; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of IIM BV and its fit among the stable of managers in the ING Fund s line-up; (6) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by IIM BV and the projected profitability of IIM BV as the Fund’s Sub-Adviser; (7) the costs for the services to be provided by IIM BV, including that the management fee would be reduced upon the appointment of IIM BV; (8) the sub-advisory fee payable by the Adviser to IIM BV; (9) IIM BV’s operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws; (10) the appropriateness of the selection of IIM BV in light of the Fund’s proposed investment objective and investor base; and (11) IIM BV’s Code of Ethics, which had been previously approved by the Board and related procedures for complying with that Code.
After its deliberation, the Board reached the following conclusions: (1) IIM BV should be appointed to serve as Sub-Adviser to the Fund under the Sub-Advisory Contract with IIM BV; (2) the sub-advisory fee rate payable by the Adviser to IIM BV is reasonable in the context of all factors considered by the Board; and (3) IIM BV maintains an appropriate compliance program, with this conclusion based upon, among other things, a representation from the Fund’s CCO that IIM BV’s compliance policies and procedures are reasonably designed to assure compliance with the Federal securities laws. Based on these conclusions and other factors, the Board voted to approve the Sub-Advisory Contract for the Fund. During their deliberations, different Board members may have given different weight to different individual factors and related conclusions.
ING Global Bond Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Global Bond Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the most recent calendar quarter and year-to-date periods, during which it underperformed; (2) the Fund outperformed its benchmark for all periods presented; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the one-year and three-year periods, and the fourth quintile for the most recent calendar quarter and year-to-date periods.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is below the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the
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context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Global Equity Dividend Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Global Equity Dividend Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund underperformed its Morningstar category median for all periods presented, with the exception of the one-year period, during which it outperformed; (2) the Fund underperformed its primary benchmark for the most recent calendar quarter, year-to-date, and three year periods, but outperformed for the one-year and five-year periods; and (3) the Fund is ranked in the third quintile of its Morningstar category for the most recent calendar quarter, one-year, and five-year periods, the fourth quintile for the three-year period, and the fifth (lowest) quintile for the year-to-date period.
In analyzing this performance data, the Board took into account: (1) Management’s analysis of the negative effect that stock selection and sector allocation had on the Fund’s performance; (2) the effect of the Fund’s dividend payment policy on more recent performance; and (3) that Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is below the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Global Natural Resources Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Global Natural Resources Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the most recent calendar quarter and year-to-date periods, during which it underperformed; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the one-year period, during which it underperformed; and (3) the Fund is ranked in the second quintile of its Morningstar category for the one-year, three-year and ten-year periods, the third quintile for the five-year period, and the fourth quintile for the most recent calendar quarter and year-to-date periods.
In analyzing this performance data, the Board took into account that, in February 2009, there was a change to the Fund’s portfolio management team.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the economies of scale benefits to the Fund and its shareholders from breakpoint discounts applicable to the Fund’s advisory fees, which result in lower fees at higher asset levels; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the
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funds in its SPG; and (b) the expense ratio for the Fund is equal to the median and below the average expense ratios of the funds in its SPG.
In analyzing this fee data, the Board took into account that it had requested and Management agreed to impose an expense cap for the Fund.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) taking into account that the Fund’s portfolio management team changed in February 2009, the Board will permit the Fund to establish a longer performance record for purposes of evaluating performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Global Real Estate Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Global Real Estate Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the year-to-date period, during which it underperformed; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the most recent calendar quarter and year-to-date periods, during which it underperformed; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the five-year period, the second quintile for the one-year and three-year periods, the third quintile for the most recent calendar quarter, and the fourth quintile for the year-to-date period.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the economies of scale benefits to the Fund and its shareholders from breakpoint discounts applicable to the Fund’s advisory and sub-advisory fees, which result in lower fees at higher asset levels; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is below the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Global Value Choice Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Global Value Choice Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented; (2) the Fund outperformed its primary benchmark for all periods presented; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for all periods presented, with the exception of the ten-year period, where it ranked in the third quintile.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to achieve a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration
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fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Greater China Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Greater China Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the most recent calendar quarter, during which it underperformed; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the year-to-date period, during which it underperformed; and (3) the Fund is ranked in the second quintile of its Morningstar category for the one-year and three-year periods, the third quintile for the year-to-date period, and the fourth quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under and Advisory Contract with a breakpoint fee schedule where the asset level necessary to achieve a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Index Plus International Equity Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Index Plus International Equity Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the three-year period, during which it underperformed; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the three-year period, during which it underperformed; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the most recent calendar quarter, the second quintile for the year-to-date and one-year periods, and the fourth quintile for the three-year period.
In analyzing this performance data, the Board took into account Management’s analysis of the effect that market volatility and the Fund’s quantitative model had on the Fund’s performance during certain periods; and (2) that Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure
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ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
(including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is below the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) Management would continue to monitor, and the Board or its IRC would periodically review, the Fund’s performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING International Capital Appreciation Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING International Capital Appreciation Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented; (2) the Fund outperformed its primary benchmark for the most recent calendar quarter and year-to-date periods, but underperformed for the one-year and three-year periods; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the most recent calendar quarter and year-to-date periods, the second quintile for the three-year period, and the third quintile for the one-year period.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to achieve a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is below the median and equal to the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is below the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING International Real Estate Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING International Real Estate Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented; (2) the Fund outperformed its primary benchmark for the one-year and three-year periods, but underperformed for the most recent calendar quarter and year-to-date periods; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the year-to-date, one-year, and three-year periods, and the third quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the economies of scale benefits to the Fund and its shareholders from breakpoint discounts applicable to the Fund’s advisory fees, which result in lower fees at higher asset levels; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee rate (inclusive of a 0.10% administration fee) for the Fund is above the median and the average
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ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
In analyzing the fee data, the Board took into account that the Adviser is waiving a portion of its advisory fees to meet the contractual expense limit, resulting in a lower effective advisory fee rate.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING International SmallCap Multi-Manager Fund (formerly ING International SmallCap Fund)
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING International SmallCap Multi-Manager Fund (formerly ING International SmallCap Fund), the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for the most recent calendar quarter, year-to-date, and five-year periods, but underperformed for the one-year, three-year, and ten-year periods; (2) the Fund underperformed its primary benchmark for all periods presented, with the exception of the most recent calendar quarter and year-to-date periods, during which it outperformed; and (3) the Fund is ranked in the second quintile of its Morningstar category for the most recent calendar quarter and year-to-date periods, the third quintile for the five-year and ten-year periods, and the fourth quintile for the one-year and three-year periods.
In analyzing this performance data, the Board took into account that, in order to address the Board’s concerns regarding the Fund’s overall investment performance, the Fund will eliminate one of its underperforming investment sleeves.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to reach breakpoint discounts have been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
In analyzing this fee data, the Board took into account that: (1) the sub-advisory fees for the two sleeves of the Fund had been reduced, and a portion of the benefit of these reductions was being shared with investors through advisory fee waivers; and (2) Management’s advisory fee waivers lower the Fund’s effective expense ratio.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) taking into account that the Fund will eliminate one of its underperforming investment sleeves in order to address the Board’s concerns regarding the Fund’s overall investment performance, the Board will permit the Fund to establish a longer performance record for purposes of evaluating performance; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING International Value Choice Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING International Value Choice Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for
167
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
all periods presented, with the exception of the most recent calendar quarter, during which it underperformed; (2) the Fund outperformed its primary benchmark for the one-year and three-year periods, and underperformed for the most recent calendar quarter and year-to-date periods; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the one-year and three-year periods, the second quintile for the year-to-date period, and the fourth quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING International Value Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING International Value Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the year-to-date period, during which it underperformed; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the year-to-date period, during which it underperformed; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the one-year and ten-year periods, the second quintile for the most recent calendar quarter, three-year, and five-year periods, and the third quintile for the year-to-date period.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with a breakpoint fee schedule where the asset level necessary to achieve a breakpoint discount had not been reached by the Fund; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee rate (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and the average expense ratios of the funds in its SPG.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to each Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Russia Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for the ING Russia Fund, the Board considered that, based on performance data for the periods ended June 30, 2009: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the one-year period, during which it
168
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
underperformed; (2) the Fund underperformed its primary benchmark for all periods presented, with the exception of the most recent calendar quarter and year-to-date periods, during which it outperformed; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the most recent calendar quarter, year-to-date, five-year and ten-year periods, the third quintile for the three-year period, and the fifth (lowest) quintile for the one-year period.
In considering the fees payable under the Advisory and Sub-Advisory Contracts the Fund, the Board took into account the factors described above and also considered: (1) the fairness of the compensation under an Advisory Contract with level fees that does not include breakpoints; and (2) the pricing structure (including the expense ratio to be borne by shareholders) of the Fund, as compared to its SPG, including that: (a) the management fee (inclusive of a 0.10% administration fee) for the Fund is above the median and the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and below the average expense ratios of the funds in its SPG.
In analyzing this fee data, the Board took into account that the Fund is one of just three pure Russia funds offered in the market and, as such, a higher management fee rate and expense ratio is charged due to the Sub-Adviser’s unique experience in this developing market.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s expense ratio is reasonable in the context of all factors considered by the Board; (3) the Fund’s performance is reasonable in the context of all factors considered by the Board; and (4) the sub-advisory fee rate payable by the Adviser to the Sub-Adviser is reasonable in the context of all factors considered by the Board. Based on these conclusions and other factors, the Board voted to renew the Advisory and Sub-Advisory Contracts for the Fund for the year ending November 30, 2010. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
169
ING Funds 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 Balanced Fund
ING Core Equity Research Fund
ING Real Estate Fund
Domestic Equity Funds-of-Funds
ING Strategic Allocation Conservative Fund
ING Strategic Allocation Growth Fund
ING Strategic Allocation Moderate Fund
Domestic Equity Growth Funds
ING Corporate Leaders 100 Fund
ING Equity Dividend Fund
ING Growth Opportunities Fund
ING MidCap Opportunities Fund
ING Opportunistic LargeCap 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-Income Funds
ING GNMA Income 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 Foreign 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 and International Fixed-Income Fund
ING Global Bond Fund
Global and International Funds-of-Funds
ING Diversified International Fund
ING Global Target Payment Fund
Loan Participation Fund
ING Senior Income Fund
Money Market Funds*
ING Money Market Fund
ING Classic Money Market Fund
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| * | An investment in the funds are 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. |
Investment Adviser
ING Investments, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
Administrator
ING Funds Services, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
Distributor
ING Funds Distributor, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
Transfer Agent
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 LLP
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 Funds 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-UINTALL (0410-062310)
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.
Item 6. Schedule of Investments.
Schedule is included as part of the report to shareholders filed under Item 1 of this Form.
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 minium 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.
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. |
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| (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. |
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| (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. |
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| (a)(3) | Not required for semi-annual filing. |
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| (b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. |
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 Mutual Funds
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| By | | /s/ Shaun P. Mathews | | |
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| | Shaun P. Mathews
President and Chief Executive Officer | | |
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| Date: | | July 7, 2010 | | |
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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.
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| By | | /s/ Shaun P. Mathews | | |
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| | Shaun P. Mathews
President and Chief Executive Officer | | |
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| Date: | | July 7, 2010 | | |
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| By | | /s/ Todd Modic | | |
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| | Todd Modic
Senior Vice President and Chief Financial Officer | | |
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| Date: | | July 7, 2010 | | |
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