OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2011
Estimated average burden hours per response: 18.9
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, 2007 to April 30, 2008
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, 2008
Classes A, B, C, I, O, Q, 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 Disciplined International SmallCap 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 Equity Dividend Fund
n ING International Growth Opportunities Fund
n ING International Real Estate Fund
| | |
| | n | ING International SmallCap Multi-Manager Fund |
(formerly, ING International SmallCap Fund)
n ING International Value Fund
n ING International Value Choice Fund
n ING International Value Opportunities Fund
n ING Russia Fund
Global and International Fixed-Income Funds
n ING Emerging Markets Fixed Income Fund
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
Go Paperless with E-Delivery!
Sign up now for on-line prospectuses, fund reports, and proxy statements. In less than five minutes, you can help reduce paper mail and lower fund costs.
Just go to www.ingfunds.com, click on the E-Delivery icon from the home page, follow the directions and complete the quick 5 Steps to Enroll.
You will be notified by e-mail when these communications become available on the internet. Documents that are not available on the internet will continue to be sent by mail.
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.
(THIS PAGE INTENTIONALLY LEFT BLANK)
PRESIDENT’S LETTER
Dear Shareholder,
Recent months have been a challenging time for investors. We have seen a variety of industries — including banking, retailing, real estate, manufacturing and others — announce disappointing earnings which further contributed to overall economic uncertainty and market volatility.
As a result, the confidence of the average investor has been tested. But we should not lose sight of the positives that have emerged: the Federal Reserve responded quickly and diligently to contain the credit crisis. Lawmakers enacted stimulus packages that some economists believe may help strengthen the economy in the second half of the year. And regulators have introduced reforms to improve the mortgage industry.
But, as often happens in these situations, anxiety can cloud sound investment principles. Market corrections are a natural part of the investment cycle, and attempts to “time” buy-and-sell decisions often hinder achieving long-term investment goals. Based on Bloomberg research, if you were fully invested in domestic equities between December 1997 and December 2007, a $10,000 investment would have grown to more than $17,000. However, had you missed the “best” 10 days of that ten-year period, your $10,000 would have grown to less than $12,000. Missing the “best” 20 days of that ten-year cycle would have been even costlier — resulting in your original $10,000 investment being worth less than $8,000.(1) No one knows when those “best” days will occur, but history tells us that — when investing — staying focused on the long term may be the prudent strategy.
ING encourages you to take this opportunity to meet with your financial professionals to ensure your portfolio reflects your goals and risk tolerance. In doing this, many investors discover that building a well-diversified investment portfolio — one made up of allocations to a wide range of asset classes — may be the best way to withstand market volatility.
At ING Funds we strive to offer our clients quality investments. I thank you for your continued support and confidence and we look forward to serving you in the future.
Sincerely,
Shaun P. Mathews,
CEO
ING Funds
May 23, 2008
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) | Bloomberg calculation based on performance of the Standard & Poor’s 500® Composite Stock Price Index (“S&P 500® Index”) between December 31, 1997 and December 31, 2007. |
1
Market Perspective: Six Months Ended April 30, 2008
We entered our new fiscal year with many investors hopeful that central bankers would do what was necessary to loosen the credit squeeze that had taken hold in the months before. But mutually reinforcing financial dislocation and economic weakness, plus the confidence sapping effect of soaring food and energy prices, soon intensified the crisis and drove investors from risk assets. Global equities in the form of the Morgan Stanley Capital International World® Index (“MSCI World® Index”)(1) measured in local currencies, including net reinvested dividends (“MSCI” for regions discussed below) slumped 11.2% for the half year (the MSCI World® Index slumped 9.37% for the half year, measured in US dollars), falling for five consecutive months before bouncing back in April. Currencies were moved by falling US interest rates (see below) and the flight to safety. The dollar traded at 12-year lows against the yen as “carry trades” were unwound. The euro cruised through the $1.50 level with the European Central Bank (“ECB”) defiantly holding interest rates firm. Only the pound among the major currencies weakened, the UK economy facing challenges roughly similar to the US. For the period, the dollar fell 7.7% and 9.3% against the euro and yen respectively, but recovered 4.1% against the pound.
The Federal Reserve Board’s (the “Fed”) first response to the credit crisis had been to reduce the discount rate (the interest rate at which it will lend to banks), by 125 basis points (1.25%) in August through October. It also cut the federal funds rate by 75 basis points (0.75%). By year-end both rates were reduced by another 25 basis points (0.25%).
But using the discount window had a stigma attached to it and credit stayed tight, as a procession of financial institutions reported heavy write-downs of mortgage-backed assets.
The credit crisis had its roots in the real economy of course, where most statistics remained grim.
In housing, the source of much of the problem, sales of new and existing homes continued to plumb multi-year depths. By April one measure of house prices had recorded its tenth straight fall at an accelerating rate, while foreclosures surged.
The February, March and April payrolls reports all showed declines, the first time payrolls had fallen in over four years. Gross Domestic Product (“GDP”) growth was reported at a wafer-thin 0.6% annualized. By the end of April, one measure of consumer confidence was at a 26-year low.
By early March the price of a barrel of oil was regularly setting new records above $100. Prices of agricultural foodstuffs were also soaring, caused by ever increasing demand, inelastic supply, the effect of the price of oil on transportation and the cost of fertilizer, as well as the actions of some governments in subsidizing consumption and restricting exports.
But despite headline inflation at 4.0%, there was now no doubt about the required direction of policy.
On a holiday Monday in January, after Moody’s put the Aaa ratings of monoline insurers on review, major international stock markets sold off by about 6.0%. On Tuesday the Fed acted, cutting the federal funds and discount rates by 75 basis points (0.75%). By the end of April the discount rate would be lower still, by 175 basis points (1.75%) and the federal funds rate by 150 basis points (1.50%). On the fiscal side, Congress passed a $168 billion plan to stimulate the economy.
Events took a remarkable turn when Bear Stearns was laid low in days by rumors of pending insolvency. The Fed brokered the sale of Bear Stearns to JP Morgan for just $10 per share, providing loan finance for the purpose. In addition, crucially, it agreed to extend liquidity to primary dealers and to accept mortgage-backed securities as collateral.
Stock markets globally seemed to take heart from this watershed event and recovered an average of 6.0% in April. It remains to be seen whether this holds in the face of very weak housing and employment conditions, with the price of oil anchored above $100.
For the six-month period as a whole, fixed income returns reflected the flight to safety. U.S. Treasury Bill yields plunged 248 basis points, while 10-year U.S. Treasury Note yields fell by less, 71 basis points, as inflationary concerns persisted. The Lehman Brothers® Aggregate Bond (“LBAB”) Index(2) of investment grade bonds returned 4.08%, but the Lehman Brothers® High Yield Bond — 2% Issuer Constrained Composite Index(3) fell 0.73%.
U.S. equities, represented by the Standard and Poor’s 500® Composite Stock Price (“S&P 500®”) Index(4) including dividends, returned (9.6)% for the six-month period. In addition to the conditions and events described above investors faced dividend cuts by some high-profile names in the financials sector and
2
Market Perspective: Six Months Ended April 30, 2008
weighed by that sector, a third consecutive quarter of declining profits.
Internationally the MSCI Japan® Index(5) sank 15.5% in the six months through April as the one source of vibrant growth, exports, faced the twin threats of a slowing world economy and a sharply higher yen, while domestic demand was held back by food and energy costs. The MSCI Europe ex UK® Index(6) fell 14.5% for the six-month period with banks taking vast write-downs on the value of asset backed securities. But there were only pockets of weakness in the housing market and with unemployment at a record low plus the highest headline inflation since 1992 the ECB was in no mood to reduce interest rates. Add to this declining demand and a soaring euro, and not only financials, but industrials, telecoms and auto companies also suffered. In the UK, the MSCI UK® Index(7) fell 8.0% for the six-month period. The Bank of England cut rates three times, but by just 1/4% each time because of inflation worries. Despite the worst housing downturn since 1992, the UK market did rather less badly than in the rest of Europe. Its 30% weighting in materials and energy actually had positive returns, while the more highly weighted staples sector proved relatively resilient.
(1) The MSCI World® Index 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 LBAB Index is a widely recognized, unmanaged index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities.
(3) The Lehman Brothers® High Yield Bond — 2% Issuer Constrained Composite Index is an unmanaged index that measures the performance of fixed-income securities.
(4) 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.
(5) The MSCI Japan® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan.
(6) 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.
(7) The MSCI UK® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK.
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.
ING Global Equity Dividend Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Equity Dividend Fund (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 months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (10.43)% compared to the Morgan Stanley Capital International World Indexsm(1) (“MSCI World Indexsm”), which returned (9.37)% for the same period.
Portfolio Specifics: During the period, high-dividend paying stocks underperformed the broad market and thus detracted from the Fund’s results. Asset allocation had a net negative effect for the period, and almost completely offset the positive effect of stock selection. A good portion of the stocks in the portfolio increased their dividends.
The Fund benefited from stock selection within telecoms. Half of the total telecom performance came from Tele Norte Leste Participacoes SA ADR and Deutsche Telekom. The Brazilian phone carrier surged on speculation that its preferred shares would be converted to common stock, facilitating a potential merger. The Fund benefited from our decision to sell Deutsche Telekom in mid-January, before the company announced domestic fixed-line earnings would slide in 2008.
IT was hit hard by global economic slowdown fears and weaker company earnings, and the Fund benefited from its underweight in the sector.
Precision Drilling Trust led energy’s contribution, and was the best performing stock for the Fund. The stock benefited indirectly from rising natural gas prices, better Q4 results and the hope that the Canadian government might lower taxes on such trusts. Petroleo Brasileiros rose as its low reserve replacement ratio improved substantially along with earnings. Rising international oil prices, its emerging market status and Brazil’s credit rating upgrade by S&P helped. In the majors, Total SA and ENI S.p.A. produced positive returns as well as pipeline operator Kinder Morgan.
Financials were weak due to the sub-prime contagion. A notable exception was Taiwanese bank Mega Financial. Banco Santander Central Hispano SA and US Bancorp contributed to results; their earnings solidity was reflected in their dividend increases. Despite other dividend increases in the sector, the overall trend in earnings was down. The worst detractors from results fell foul of big write-downs and record capital increases and also cut their dividends; among them were Citigroup, Inc., RBS, First Horizon National Corp., Washington Mutual and Wachovia Corp. The sector cost the Fund all the accumulated gains from Telecoms and IT.
Telecom Italia S.p.A. RNC and retailer DSG International PLC also returned less to investors. DSG International PLC announced a profit decline early in the period, followed by a later profit warning on weak holiday sales, especially in its PC chain. In March, Telecom Italia S.p.A. RNC accentuated its losses by publishing full year earnings below expectations.
Current Strategy and Outlook: The outlook for the strategy remains positive. We believe investments in quality defensive names will give the Fund downside protection and lower volatility. As the global economy has slowed, the Fund has sold expensive sectors (utilities) or ones where we see limited upside (telecoms) and reduced emerging markets exposure. Reinvestment has emphasized cyclicals, consumer staples and health care. We continue to seek sectors or individual stocks to exploit temporary under valuations that often occur.
| |
| (1) | This MSCI World® Index 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, 2008
(as a percent of net assets)
| | | | | |
| Fortis | | | 1.8 | % |
| BP PLC | | | 1.7 | % |
| ENI S.p.A. | | | 1.7 | % |
| Total SA | | | 1.7 | % |
| Citigroup, Inc. | | | 1.5 | % |
| GlaxoSmithKline PLC | | | 1.5 | % |
| Vivendi | | | 1.5 | % |
| Pfizer, Inc. | | | 1.4 | % |
| Royal Bank of Scotland Group PLC | | | 1.4 | % |
| Bank of America Corp. | | | 1.4 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
4
ING Global Natural Resources Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
| | | | | |
| United States | | | 62.9 | % |
| Canada | | | 21.9 | % |
| Netherlands | | | 2.7 | % |
| Australia | | | 2.3 | % |
| Barbados | | | 2.0 | % |
| Norway | | | 1.9 | % |
| France | | | 1.4 | % |
| Brazil | | | 1.1 | % |
| Italy | | | 1.0 | % |
| South Africa | | | 0.9 | % |
| Switzerland | | | 0.9 | % |
| United Kingdom | | | 0.9 | % |
| Bermuda | | | 0.4 | % |
| Other Assets and Liabilities – Net | | | (0.3 | )% |
| | | | | |
| Net Assets | | | 100.0 | % |
| | | | | |
Portfolio holdings are subject to change daily.
ING Global Natural Resources Fund (the “Fund”) seeks to attain long-term capital appreciation. The Fund is managed by James A. Vail, CFA, Portfolio Manager and David Powers, Portfolio Manager, both of ING Investment Management Co. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of 3.51% compared to the Standard & Poor’s 500® Composite Stock Price Index(1) (“S&P 500® Index”) and the Standard & Poor’s (“S&P”) GSSItm Natural Resources Index(2) which returned (9.64)% and 4.54%, respectively, for the same period.
Portfolio Specifics: During the period, commodity prices were buffeted by severe volatility as they attained record levels. Gold and silver hit all-time highs but retreated, as did several other precious metals. Coal and iron ore performed strongly as Asian buyers paid significantly more for the coming fiscal year. Corn, wheat and soy beans hit high levels and then sold off. Oil scarcity is still driving up crude prices as intermediate to long-term supply additions remain uncertain. Prices also are being affected by investors using oil as an inflation hedge, and by speculators.
The Fund underperformed the S&P GSSItm Natural Resources Index for the period, due largely to a net negative allocation effect. A net positive security selection effect offset most but not all of the drag from allocation.
The Fund benefited from its stock selection, particularly in oil and gas drilling and integrated oil and gas. Our directional moves within gold boosted performance. We overweighted gold from November through January as investors sought havens from the financial crisis. We began to underweight gold in March, when it typically has sold off. The Fund’s steel holdings also helped performance.
Stock selection and allocation in oil and gas exploration and production detracted from results. The Fund was also hurt by its overweight and holdings in diversified metals and mining.
Within integrated oil and gas, Petroleo Brasileiro SA ADR and Hess Corp. outperformed as offshore oil and gas discoveries in Brazil sizably increased their resource base. Patterson-UTI Energy, Inc. and Nabors Industries Ltd., oil and gas drilling rig contractors, were top performers as drilling activity and contract sizes stabilized. The Fund’s holdings of Barrick Gold Corp. and Randgold Resources Ltd. ADR benefited from higher gold prices. New demand exceeded production at U.S. Steel, which benefited from the weaker U.S. dollar.
Within diversified metals and mining, First Uranium Corp. suffered from a major pullback in uranium prices and detracted from results. We believe that uranium has long-term potential for electric power generation without producing carbon dioxide. Nickel producer FNX Mining Co., Inc. (“FNX”) was hurt by falling prices and fears of global economic slowdown. We think the stock price reflects near-term negativity and find FNX more attractive. Not owning Chesapeake Energy Corp. and EOG Resources, Inc., two exploration and production companies, detracted from performance.
Current Strategy and Outlook: We believe we are in the middle of a longer and stronger natural resource cycle, driven by advancing industrialization and urbanization in emerging economies and by accelerating infrastructure spending globally. These trends are energy and metal intensive: after a decade of underinvestment, supply cannot meet demand over the short term. Thus, we believe any supply disruption from strikes, mining mishaps or refinery outages should support higher prices.
A prime example of this is the electric power outages in South Africa due to lack of investment. We expect this situation to last for at least three years and to disrupt the country’s exports, particularly gold and platinum. We believe the Fund is well positioned to benefit from these global trends.
Historical, seasonal trends may cause a short-term pause in metal prices and disruption in commodity prices. Nevertheless, we believe the cycle remains intact for longer-term price appreciation. Currently, the Fund is poised to withstand near-term volatility with its overweight in integrated oils and reduced weighting in non-ferrous metals. Going forward, we expect to add to positions in the sectors where we perceive the best outlook.
| |
| (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 GSSItm Natural Resources Index (formerly, known as the Goldman Sachs 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, 2008
(as a percent of net assets)
| | | | | |
| ExxonMobil Corp. | | | 7.7 | % |
| Chevron Corp. | | | 5.8 | % |
| ConocoPhillips | | | 4.6 | % |
| Apache Corp. | | | 4.0 | % |
| Halliburton Co. | | | 3.9 | % |
| Occidental Petroleum Corp. | | | 3.8 | % |
| Encana Corp. | | | 3.8 | % |
| Devon Energy Corp. | | | 3.5 | % |
| Canadian Natural Resources Ltd. | | | 3.1 | % |
| Schlumberger Ltd. | | | 3.1 | % |
Portfolio holdings are subject to change daily.
5
ING Global Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Real Estate Fund (the “Fund”) seeks to provide investors with high total return, consisting of capital application 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 L.P. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (11.45)% compared to the Standard & Poor’s/Citigroup World Property Index(1) (“S&P/Citigroup World Property Index”), which returned (12.90)% for the same period.
Portfolio Specifics: Global property companies generally posted a negative total return for the period as angst about a weakening economy, continuing problems in the credit markets and decelerating earnings growth forecasts have weighed on the stocks. Promising price movements exhibited in the markets in March and April provided some hope that equity markets, including global property stocks, are beginning to firm following proactive moves by the Federal Reserve Bank (the “Fed”), which lowered the federal funds rate by 75 basis points (0.75%) to 2.25% and, separately, provided financial support via a $200 billion lending program to the banking community. The subsequent positive response by equity markets, including real estate investment trusts (“REITs”), helped to advance the argument that the worst of the current credit crunch might be behind us. In the U.S., property companies appear to be finding support after experiencing their most significant correction in nearly a decade (a 35% peak-to-trough correction since the peaking in February of last year, versus past peak-to-trough corrections in the 25% range) with valuations that are the most attractive we have seen in years. We continue to believe that property stocks are well-positioned to manage through the current economic environment, despite headwinds which may persist past mid-year.
Fund outperformance for the period was driven by stock selection and country allocation. Stock selection, which accounted for roughly 60% of the period’s outperformance, was especially strong in the Asia-Pacific region as the Fund maintained its tilt towards conservatively-managed companies, defensive property types, and rock-solid balance sheets. Examples of Fund holdings along these lines include Australian global mall operator Westfield Group, Hong Kong shopping center company the Link Real Estate Investment Trust, and Tokyo office landlord Mitsubishi Estate Co., Ltd., all of which soundly outperformed their respective countries’ average return for the period. Conversely, the Fund is avoiding investments in companies with the opposite characteristics, especially companies with above-average leverage or any prospective refinancing concerns. Country allocation decisions added value as relative performance was helped by overweights to outperforming property markets in the U.S., France, and the Netherlands, combined with an underweight to the underperforming markets of Hong Kong, Germany and Spain.
Current Strategy and Outlook: Debt market turmoil and fears of an economic slowdown have weighed on the markets and the resultant withdrawal of liquidity and de-leveraging across many asset classes has added to a general lack of investor confidence. A recession, however, appears to have already been priced into the shares of real estate stocks and we believe the market is implying real estate value declines (i.e., cap rate increases) that are well beyond current private market transactions. In our opinion, real estate stocks look attractive at current levels and continue to trade at discounts to their underlying net asset value. Dividend yields on real estate stocks, which are well-covered, are once again at premiums to their long-term local government bond yields. Price-to-earnings multiples have returned to levels near their long-term average.
The Fund continues its strategy of positioning the Fund toward well-managed companies, defensive property types and conservative balance sheets while avoiding companies with above-average leverage or any prospective refinancing concerns. At period end, this translated into overweight allocations to the relatively higher-quality property markets of France and the Netherlands and underweight markets where property fundamentals and outlook are not as strong, such as Austria, Germany and Spain.
| |
| (1) | The S&P/Citigroup World Property Index is an unmanaged market weighted total return index which consists of many companies from developed markets whose floats are larger than $100 million and derive more than half of their revenue from property-related activities. |
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, 2008
(as a percent of net assets)
| | | | | |
| Westfield Group | | | 4.8 | % |
| Mitsubishi Estate Co., Ltd. | | | 4.6 | % |
| Simon Property Group, Inc. | | | 4.1 | % |
| Unibail | | | 4.0 | % |
| Mitsui Fudosan Co., Ltd. | | | 3.7 | % |
| Cheung Kong Holdings Ltd. | | | 3.7 | % |
| Sun Hung Kai Properties Ltd. | | | 3.3 | % |
| Land Securities Group PLC | | | 2.5 | % |
| Boston Properties, Inc. | | | 2.5 | % |
| Ventas, Inc. | | | 2.1 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral and U.S. government agency obligation. | |
Portfolio holdings are subject to change daily.
6
ING Global Value Choice Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Value Choice Fund (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 months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (8.71)% compared to the Morgan Stanley Capital International All Country World Indexsm(1) (“MSCI All Country World Indexsm”) which returned (9.47)% for the same period.
Portfolio Specifics: The Fund had negative absolute returns during the six month period ending April 30, 2008. However, the Fund outperformed its benchmark, the MSCI All Country World Indexsm. Fund outperformance versus the benchmark in the period is partially attributed to significantly underweight allocations in the financials and information technology sectors, which underperformed, and several holdings that performed well.
Consumer staples holding Tyson Foods, Inc. is the world’s largest protein provider and supplies beef, chicken, and pork to the global marketplace and was the largest individual contributor to performance. We believe that the company has the potential to continue to benefit from increased foreign demand.
Sumitomo Trust and Banking Co., Ltd., Japan’s fifth largest bank by market capitalization, also positively contributed to performance. This well-managed Japanese bank was added to the portfolio in January 2008 at a valuation we considered at below book value. The company had been punished in harmony with the global financial sector, but unfairly in our opinion, as the company’s balance sheet and liquidity profile were of good quality in a global context.
Overall, the Fund’s overweighted materials sector was the largest detractor on performance this period, although performance within the sector varied by industry. The share price of Dyno Nobel Ltd., the world’s second-largest explosives maker, rallied during the period. In early March, Incitec Pivot Ltd., Australia’s biggest fertilizer maker, agreed to acquire Dyno Nobel Limited for $1.7 billion USD. While the price of gold escalated to record highs during the period, Anglogold Ashanti Ltd. ADR, one of the Fund’s largest holdings, was the worst detractor from performance. Anglogold, a global gold producer with operations and exploration programs around the world, was hurt by electricity shortages that interrupted mining production in South Africa and negative investor sentiment related to its hedge book. Apex Silver Mines Ltd., a base metal mining company engaged in the exploration and development of silver and other mineral properties in Latin America, experienced production delays and discovered well failures that hampered production. As a result, investors became increasingly concerned that continued production setbacks could result in liquidity challenges for the firm if it were unable to meet its hedge book commitments. Another large detractor was AbitibiBowater Inc., the eighth largest publicly traded pulp and paper manufacturer in the world. The paper and pulp industry has done poorly due to rising producer costs, oversupply and a poor economic outlook in the United States.
Current Strategy and Outlook: As we look ahead, we believe that continued volatility in the equity markets worldwide should present us with value opportunities. We continue to look for industry-leaders, high quality or improving franchises, and scarce assets, which trade below their intrinsic worth.
| |
| (1) | The MSCI All Country World Indexsm is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The MSCI All Country World Indexsm more closely tracks the types of securities in which the Fund invests than the MSCI World Indexsm. |
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, 2008
(as a percent of net assets)
| | | | | |
| Newmont Mining Corp. | | | 4.6 | % |
| Korea Electric Power Corp. ADR | | | 4.4 | % |
| Barrick Gold Corp. | | | 4.4 | % |
| Nippon Telegraph & Telephone Corp. ADR | | | 4.3 | % |
| Anglogold Ashanti Ltd. ADR | | | 4.0 | % |
| Royal Dutch Shell PLC ADR – Class B | | | 3.7 | % |
| Smithfield Foods, Inc. | | | 3.2 | % |
| AstraZeneca PLC ADR | | | 2.8 | % |
| Stolt-Nielsen SA | | | 2.6 | % |
| Sprint Nextel Corp. | | | 2.6 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral and U.S. government agency obligation. | |
Portfolio holdings are subject to change daily.
7
ING Asia-Pacific Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Asia-Pacific Real Estate Fund (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 L.P. — the Sub-Adviser.
Performance: Since the Fund’s inception on November 1, 2007 through April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (19.47)% compared to the Standard & Poor’s/Citigroup Asia-Pacific Property Index(1) (“S&P/Citigroup Asia-Pacific Property Index”) which returned (17.89)% for the same period.
Portfolio Specifics: An Asia-Pacific listed property company strategy underperformed other regional investment strategies for the period as Asia-Pacific property stocks were down nearly 18%, compared to Europe where property company returns were down 10% and North America where property company returns were down 8%. The Asia-Pacific region showed weakness due to concerns regarding the potential effects of slowing global economic growth on export-based economies, evidence of higher inflation in mainland China plus profit-taking following strong performance in 2007. Negative performance was driven most notably by Australia, which was down over 25% for the period. Hong Kong-based property companies with exposure to development in mainland China also performed particularly poorly in a reversal from 2007 when these companies significantly outperformed.
The Fund trailed the benchmark for the period, primarily as the result of stock selection in Hong Kong, as exposure to developers such as Guangzhou R&F Properties Co., Ltd., Agile Property Holdings, Ltc., and Zhong An Real Estate detracted from performance during the period, more than offsetting strong stock selection in Australia, Singapore and Japan.
In Australia, where property stocks were down over 25% for the period, a bifurcation of sorts continues to unfold as the better-capitalized and more-experienced companies (for example Westfield Group and Stockland) have demonstrated their ability to execute in a challenging environment while some of the more leveraged companies have cut dividends and have brought down earnings growth guidance (for example, real estate investment trusts (“REITs”) focused on U.S. investments including Macquarie DDR Trust).
In Japan, where property companies were down over 14% for the period, news in March was favorable as the annual land survey by the Ministry of Land, infrastructure, transport and tourism showed nationwide land prices increasing by 1.7%. Land prices in Tokyo proper fared much better as prices for residential and commercial properties rose 10.4% and 17.3%, respectively. Tokyo office vacancy remains low at 2.8% at the end of February and large transactions continue to occur.
Although Hong Kong property companies were down 14% for the period, property companies rallied strongly in March and were up over 10% for the month on the combination of a sharp rebound in the higher risk China developers and favorable fundamental news. Preliminary indications suggest that Hong Kong’s A-Grade office market continues to see surprisingly robust growth with strong increases in rent. Additionally, there is little evidence of A-Grade office tenants looking to downsize in the market at the moment. Companies with exposure to China helped fuel the rally, including diversified bellwether Sun Hung Kai Properties Ltd., Kerry Properties Ltd. and China pure-play residential developer Agile Property Holdings, Ltd.
Current Strategy and Outlook: At period end, the Fund is underweight Japan on the basis of slow economic growth and underweight Australia, although the country continues to benefit from robust demand as either indirectly or directly generated by strength in the natural resources sector. The Fund moved to an overweight Hong Kong on the basis of what we believe is a strengthening residential market bolstered by negative real interest rates and stronger than expected absorption in the office sector.
| |
| (1) | The S&P Citigroup Asia-Pacific Property Index is an unmanaged float adjusted return index which consists of many companies from developed markets whose float adjusted market caps are larger than $1 billion and derive more than half of their revenue from property-related activities in the Asia Pacific region. |
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 30,2008
(as a percent of net assets)
| | | | | |
| Mitsubishi Estate Co., Ltd. | | | 9.9 | % |
| Westfield Group | | | 9.3 | % |
| Mitsui Fudosan Co., Ltd. | | | 7.6 | % |
| Cheung Kong Holdings Ltd. | | | 7.2 | % |
| Sun Hung Kai Properties Ltd. | | | 7.1 | % |
| Nippon Building Fund, Inc. | | | 2.9 | % |
| Stockland | | | 2.8 | % |
| Hang Lung Properties Ltd. | | | 2.6 | % |
| GPT Group | | | 2.6 | % |
| Sumitomo Realty & Development Co., Ltd. | | | 2.5 | % |
Portfolio holdings are subject to change daily.
8
ING Disciplined International SmallCap Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Disciplined International SmallCap Fund (the “Fund”) seeks long term capital appreciation. The Fund is managed by Omar Aguilar, Ph.D., Portfolio Manager and Vincent Costa, CFA, Portfolio Manager, both of ING Investment Management Co. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (15.52)% compared to the Standard and Poor’s Citigroup Extended Market Index World ex-US(1) (“S&P/Citigroup EMI World ex-US”), which returned (13.92)% for the same period.
Portfolio Specifics: Market recognition factors like estimate revision did not work well during the period. Growth factors were flat, with factors such as long-term growth and free cash flow to growth being negative and expected return on equity working well. Value and quality factors such as book to price and return on assets worked well for the semi-annual period ending April 30, 2008.
The underperformance was primarily due to security selection in the consumer discretionary, information technology and industrials sectors. These losses were partially offset by security selection in the financials and materials sectors.
An overweight position in the consumer discretionary sector and underweight positions in the health care and utilities sectors hurt performance. These losses were partially offset by an overweight position in the consumer staples sector.
The top detractors included overweight positions in were Thomson, Challenger Financial Services Group Ltd. and Kumho Industrial Co., Ltd. Top contributors during the period were overweight positions in Incitec Pivot Ltd., Eramet SLN and Glidemeister AG.
Current Strategy and Outlook: Our research builds a structured Fund of stocks with fundamental characteristics that we believe will translate into a performance advantage over the benchmark. Our analysis positions the Fund to capitalize on high quality companies with superior business momentum, growing earnings and attractive valuations.
The Fund is currently overweight in the financials, materials and consumer staples sectors and underweight in the utilities sector.
| |
| (1) | The S&P/Citigroup EMI World ex-US. is an unmanaged extended market index of the world market excluding U.S.; extended meaning small capitalization stock universe on bottom 20% of available capital of each country. |
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, 2008
(as a percent of net assets)
| | | | | |
| iShares MSCI EAFE Index Fund | | | 3.9 | % |
| Incitec Pivot Ltd. | | | 0.8 | % |
| Accor SA | | | 0.7 | % |
| Holcim Ltd. | | | 0.7 | % |
| Deutsche Lufthansa AG | | | 0.6 | % |
| Technip SA | | | 0.6 | % |
| Swiss Life Holding | | | 0.6 | % |
| Union Fenosa SA | | | 0.6 | % |
| Gildemeister AG | | | 0.6 | % |
| Acerinox SA | | | 0.6 | % |
Portfolio holdings are subject to change daily.
9
ING Emerging Countries Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Emerging Countries Fund (the “Fund”) seeks maximum long-term capital appreciation. The Fund is managed by Brandes Investment Partners, L.P. (“Brandes”), the Sub-Adviser. Brandes’ Emerging Markets Investment Committee is responsible for making the day-to-day investment decisions for the Fund. Alphonse Chan, CFA, Portfolio Manager, Christopher Garrett, CFA, Institutional Portfolio Manager, Douglas Edman, CFA, Director — Investments, Gerardo Zamorano, CFA, Senior Analyst, Greg Rippel, CFA, Senior Analyst, and Steven Leonard, CFA, Senior Analyst are the six voting members of Brandes’ Emerging Markets Investment Committee.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (6.76)% compared to the Morgan Stanley Capital International Emerging Markets Indexsm(1) (“MSCI EM Indexsm”), which returned (10.28)% for the same period.
Portfolio Specifics: Declines for holdings in industries such as textiles, apparel & luxury goods and specialty retail, had a negative impact on returns. Among the positions posting declines from these industries were Weiqiao Textile Co. (China — textiles, apparel & luxury goods), JD Group Ltd. (South Africa — specialty retail), and Fountain Set Holdings (Hong Kong — textiles, apparel & luxury goods). The Fund’s positions in the wireless telecommunication services and electronic equipment & instruments industries also experienced negative performance. Advances for the Fund’s holdings in the diversified telecommunication services and commercial banking industries made positive contributions to performance.
On a country basis, negative performance for holdings based in South Korea, South Africa, and China weighed on the Fund’s returns. Positions from these countries experiencing share price declines included SK Telecom Co., Ltd. (South Korea — wireless telecommunication services), Imperial Holdings Ltd. (South Africa — air freight & logistics), and Weiqiao Textile Co. (China — textiles, apparel, & luxury goods). The Fund’s holdings in Taiwan tended to advance, including Walsin Lihwa Corp. (Taiwan — electrical equipment) and Far EasTone Telecommunications Co., Ltd. (Taiwan — wireless telecommunication services).
Relative to the index, the Fund benefited from stock selection and greater exposure to the diversified telecommunication services industry, and lower exposure to China. Stock selection in the commercial banking industry and Hong Kong helped performance relative to the MSCI EM Indexsm. Conversely, a lack of exposure to the oil, gas, & consumable fuels and metals & mining industries had a modest negative impact on relative performance. Stock selection in South Africa also weighed on relative performance. As a reminder, industry and country exposures are the result of our individual security selection — not top-down industry forecasts.
During the period, we sold select positions as their market prices advanced toward our estimates of their intrinsic values, including Taro Pharmaceutical Industries (Israel — pharmaceuticals) and Bangkok Bank PCL (Thailand — commercial banking). We sold the Fund’s position in Hellenic Telecommunications Organization SA (Greece — diversified telecommunication services) to pursue what we believe to be more attractive opportunities. We purchased shares of companies at prices that we consider attractive, including Arcelik A/S (Turkey — household durables) and Imperial Holdings Ltd. (South Africa — air freight & logistics).
Current Strategy and Outlook: While we monitor short-term events in emerging 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.
| |
| (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, 2008
(as a percent of net assets)
| | | | | |
| Hyundai Motor Co. | | | 4.9 | % |
| Weiqiao Textile Co. | | | 4.0 | % |
| Braskem SA | | | 3.9 | % |
| China Motor Corp. | | | 3.5 | % |
| Arcelik A/S | | | 3.4 | % |
| Banco Latinoamericano de Exportaciones SA | | | 3.3 | % |
| LG Chemical Ltd. | | | 3.2 | % |
| First Pacific Co. | | | 3.2 | % |
| Lotte Chilsung Beverage Co., Ltd. | | | 2.9 | % |
| Magyar Telekom Telecommunications PLC | | | 2.9 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
10
ING European Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING European Real Estate Fund (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 L.P. — the Sub-Adviser.
Performance: Since the Fund’s inception on November 1, 2007 through April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (5.57)% compared to the Standard & Poor’s/Citigroup Europe Property Index(1) (“S&P/Citigroup Europe Property Index”) which returned (10.38)% for the same period.
Portfolio Specifics: Overall, European property company stocks were down 10% for the period. While negative, a European strategy generally outperformed the Asia-Pacific region as those property companies were down 18%, and marginally underperformed North American property companies which were down 8%. The European region showed potential effects of slowing global economic growth, as exacerbated by the global credit crunch. Additionally, bright spots included positive returns in France, the Netherlands and Switzerland. A weakening U.K. economy continues to weigh down its property stocks, which lagged the index for the quarter.
The Fund outperformed the benchmark for the period as the result of superior stock selection and country allocation decisions. Stock selection was especially strong in France, where overweights to office company Silic, shopping center company Mercialys, and pan-European mall company Unibail drove the majority of outperformance. Country allocation decisions added value through overweights to outperforming property markets in Finland, France, the Netherlands and Switzerland, along with underweights to underperforming property markets in Austria, Germany and Spain.
In the U.K., property stocks were down 18% during the period, largely the result of negative broad sentiment caused by the credit crunch plus a renewed visibility to the potential weakness in the occupational markets. Outperformance by larger, lower-risk rent collectors with moderate development programs (such as Hammerson PLC and Liberty International PLC) was offset by the underperformance of smaller and more leveraged entities (such as shopping center company Capital and Regional). On the earnings front, the majority of companies have released second half 2007 earnings and continue to report stable fundamentals despite an increase in yields. The drop in asset values has come as no surprise as the increase in property yields in the U.K. has been widely expected by the market and arguably more than priced into the listed property companies.
On the Continent, property stocks declined to a lesser extent as French, Dutch and Swiss markets had positive returns during the period. The news from Europe is one of stable fundamentals with some evidence of a slowing demand. Recent earnings releases show that retail companies have done particularly well as Unibail, Klepierre, Corio NV and Eurocommercial Properties NV, all reported sales growth in the 5% to 7% range.
Current Strategy and Outlook: The Fund continues its strategy of positioning the Fund toward what it believes are well-managed companies, defensive property types and conservative balance sheets while avoiding companies with above-average leverage or any prospective refinancing concerns. At period end, this translated into overweight allocations to the relatively higher-quality property markets of France and the Netherlands and underweight markets where, in our opinion, property fundamentals and outlook are not as strong, such as Austria, Germany and Spain.
| |
| (1) | The S&P Citigroup Europe Property Index is an unmanaged float adjusted return index which consists of many companies from developed markets whose float adjusted market caps are larger than $1 billion and derive more than half of their revenue from property-related activities in the Europe region. |
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, 2008
(as a percent of net assets)
| | | | | |
| Unibail | | | 15.4 | % |
| Land Securities Group PLC | | | 12.6 | % |
| Corio NV | | | 5.9 | % |
| Hammerson PLC | | | 4.5 | % |
| Gecina SA | | | 3.9 | % |
| Mercialys | | | 3.8 | % |
| Liberty International PLC | | | 3.3 | % |
| PSP Swiss Property AG | | | 2.9 | % |
| Eurocommercial Properties NV | | | 2.9 | % |
| Prologis European Properties | | | 2.7 | % |
Portfolio holdings are subject to change daily.
11
ING Foreign Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Foreign Fund (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 with Artio Global Investment Management LLC (whose name changed on June 15, 2008 from Julius Baer Investment Management LLC) — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (10.08)% compared to the Morgan Stanley Capital International (“MSCI”) All Country World (ex-US) Index(1), which returned (9.34)% for the same period.
Portfolio Specifics: The six months ending April 30, 2008 were among the most turbulent in recent memory. In an attempt to cushion the economy from slowing global growth and thaw the freeze in credit markets, the US Federal Reserve Bank (the “Fed”) cut the nation’s benchmark interest rate at the fastest pace in two decades to 2.0% by the end of April. They also took two bold steps to reassure an anxious investment community, first by infusing markets with $200 billion to ease liquidity and second, by creating a lending facility for investment banks to secure short-term loans (a benefit previously available only to commercial banks). Meanwhile, the European Central Bank (“ECB”) and the Bank of England were also faced with inflationary fears, however the ECB held rates steady through the period at 4% and the Bank of England cut its base rate by a mere 0.25% in April to 5.0%. Compared with other major world currencies, the dollar continued to move lower, declining by approximately 10% versus the Japanese yen and 8% versus the euro.
Our underweight to the commodity-oriented market of Brazil detracted from results as did stock selection within several emerging markets. OTP Bank Nyrt (Hungary), State Bank of India Ltd. warrants and Bank of Cyprus Public Co., Ltd. underperformed as did several industrials companies including Suzlon Energy Ltd. certificates (India), that nation’s largest maker of wind-turbine generators, Beijing Capital International Airport Co., Ltd. and China Merchants Holdings International Co., Ltd. However, our underweight to China and South Korea and overweight to the Czech Republic and Russia had a positive impact on performance.
Positively contributing to performance was our underweight to UK financials and consumer discretionary companies. Additionally, while we remained quite underweight to Japanese stocks, our ability to move closer to the benchmark weighting in the Japanese yen proved beneficial amid a strong environment for the currency. Within the materials sector, agricultural chemicals companies were quite strong amid continued demand for crop nutrients. Potash Corp. of Saskatchewan Inc. (Canada), Yara International ASA (Norway) and Silvinit BRD (Russia) were particularly solid performers. Additionally, infrastructure-related companies such as the world’s largest cement manufacturer LaFarge SA (France) performed well as did Rio Tinto Ltd. (Australia), a leading mining group with activities in aluminium, copper, coal, industrial metals and other materials. Finally, amid a weak equity environment overall, our decision to maintain a position in cash equivalents proved beneficial.
Current Strategy and Outlook: Over the next 6-12 months, we anticipate further economic weakness in the US and globally, amid a “delayed coupling”. We continue to focus on those areas of the world less dependent upon the US consumer. In our opinion, central and Eastern Europe, particularly Poland and Hungary remain attractive. We anticipate Hungary may be able to join the common currency within the next 4 years and find the banking sector in the region overall an attractive investment given the rise of the middle class and the demand for basic financial services. We remain underweight in Asian developed and emerging markets given their vulnerability to a slowdown in US consumption growth. However, we have identified a few interesting areas, including Taiwan and India. The newly elected President of Taiwan appears to have a more pragmatic approach toward China which, we believe, may improve economic links. Additionally, we do have positions within India which we view as more liberalized and competitive economically than China, making it structurally stronger in the long term. Corporate governance standards are also well ahead of the Chinese. We continue to be drawn to the banking sector in India which, in our opinion, is highly leveraged to gross domestic product (“GDP”) growth.
We continue to favor industries that are monopolistic or oligopolistic in nature such as airports and seaports. We also prefer industries leveraged to infrastructure spending such as mining and cement and are attracted to the positive dynamic in the agriculture industry with exposure to producers of agriculture chemicals.
| |
| (1) | The MSCI All Country World (ex US) Indexsm 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, 2008
(as a percent of net assets)
| | | | | |
| iShares DJ Euro STOXX 50 | | | 4.0 | % |
| OTP Bank Nyrt | | | 2.7 | % |
| Komercni Banka A/S | | | 2.6 | % |
| OMV AG | | | 1.6 | % |
| Rio Tinto Ltd. | | | 1.5 | % |
| Total SA | | | 1.4 | % |
| State Bank of India Ltd. (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 1.4 | % |
| BP PLC | | | 1.3 | % |
| Holcim Ltd. | | | 1.2 | % |
| Nokia OYJ | | | 1.2 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
12
ING Greater China Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Greater China Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Nick Toovey, CFA, 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 months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (18.32)% compared to the Morgan Stanley Capital International (“MSCI”) All Countries Golden Dragon Index(1), which returned (17.69)% for the same period.
Portfolio Specifics: The Fund benefited from its stock selection in Hong Kong and Taiwan, while country allocation hurt performance due to an overweight in China, which underperformed during the first three months of the reporting period.
China reported real gross domestic product (“GDP”) growth of 10.6% year-over-year in the first quarter of 2008. Domestic consumption remained strong, as did industrial production, and export growth rebounded. Inflation came down, and food prices showed signs of stabilizing. The domestic Chinese A share market showed a decisive rebound after the China Securities Regulatory Commission (“CSRC”) cut stamp duty levies for securities transactions.
In Hong Kong, GDP growth remained high in the fourth quarter of 2007. The Fund’s positions in defensive stocks such as utilities company CLP Holdings Ltd. and Hang Seng Bank Ltd. outperformed in the market correction in the latter half of the reporting period. The Fund benefited from its positions in Hong Kong financials: overweights in banks and real estate and an underweight in diversified financials; Stock selection in real estate also helped performance.
Taiwan was one of the best performing markets during the period, Accordingly, the Fund’s underweight in Taiwan for most of the period detracted from results. Construction and financials were among the best performing sectors as the opposition party Kuomintang (“KMT”) won the presidential election during March. The market is anticipating better cross-strait relations between Taiwan and China with the change in the presidency in May 2008. The Fund’s overweight in the Taiwan domestic sector, including positions such as Far Eastern Textile Co., Ltd. and First Financial Holding Co., Ltd., helped performance.
On the other hand, stock selection in the Taiwan technology sector detracted from results. The Fund’s overweight in MediaTek, Inc. was a drag as its profit margin contracted, while an underweight in Taiwan Semiconductor Manufacturing Co., Ltd. ADR hurt as the stock outperformed. The Fund’s overweight in China Southern Airlines Co., Ltd. also hurt as oil prices moved higher.
Current Strategy and Outlook: Concerns regarding the US economic slowdown have dented sentiment, and China as an emerging market is not immune. Nevertheless, based on fundamentals, we believe China’s domestic economic picture looks bright: corporate earnings growth is faster than expected and core inflation is under control. Despite near-term tightening measures we believe the government is still taking a pro-growth stance in 2008. The renminbi has continued to strengthen gradually. We continue to maintain a positive long-term bias towards the Chinese market, though we believe it may pause after the strong rally in April.
The domestic fundamentals in Hong Kong remain stable, supported by negative real interest rates and buoyant consumer confidence.
In Taiwan, the eight-year political deadlock may soon end with the KMT controlling the executive arm as well as the legislature. Relations with China may improve, with both sides more likely to take a pragmatic view on promoting economic growth. We believe the longer-term outlook for Taiwan remains positive. In general, Taiwan is still heavily geared towards the IT sector, which may suffer from the US economic slowdown. We are maintaining an overall neutral market position, with bias towards the domestic focus sectors.
| |
| (1) | The MSCI All Countries Golden Dragon Index is a broad-based, unmanaged index of common stocks traded in China, Hong Kong and Taiwan. The MSCI All Countries Golden Dragon Index 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, 2008
(as a percent of net assets)
| | | | | |
| China Mobile Ltd. | | | 9.3 | % |
| Chunghwa Telecom Co., Ltd. | | | 4.1 | % |
| Cathay Financial Holding Co., Ltd. | | | 4.1 | % |
| CLP Holdings Ltd. | | | 4.1 | % |
| First Financial Holding Co., Ltd. | | | 4.0 | % |
| China Overseas Land & Investment Ltd. | | | 3.8 | % |
| China Life Insurance Co., Ltd. | | | 3.7 | % |
| Cheung Kong Holdings Ltd. | | | 3.7 | % |
| Hong Kong Exchanges and Clearing Ltd. | | | 3.6 | % |
| Far Eastern Textile Co., Ltd. | | | 3.2 | % |
Portfolio holdings are subject to change daily.
13
ING Index Plus International Equity Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Index Plus International Equity Fund (the “Fund”) seeks to outperform the total return performance of the Morgan Stanley Capital International 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 months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (11.70)% compared to the MSCI EAFE® Index, which returned (9.21)% 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 Fund (between 300 and 400). 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 100-200 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 underperformed that of the benchmark in the review period due to adverse stock selection in Europe and, to a lesser extent, in developed Asia ex-Japan. The Fund’s modest value and small capitalization tilts constituted a headwind in a period where growth and larger capitalization stocks outperformed. By design the Fund’s sector and region weights approximate that of the benchmark; consequently no value is added through sector allocation or regional allocation.
The predictive power of the individual factors included in each of the international sector models for a particular reporting period substantially determines the stock selection result in each sector. For this reporting period, our positioning in materials had the largest negative impact, due largely to a perverse outcome of our valuation factors. In the industrials and consumer discretionary sectors the valuation and cash flow variables resulted in sub-optimal positioning. Stock selection in consumer staples sector added modestly to the excess return due to the effectiveness of the cash yield and book-to price factors.
Current Strategy and Outlook: By design, the Fund maintains approximate benchmark weights of the regions, economic sectors, and industries constituting MSCI EAFE® Index and is expected 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 attractive ranking stocks may have individual overweights of up to 50 basis points, while for risk control purposes the maximum allowable underweight per security is 50 basis points. 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 exceeding that of the benchmark, carries a dividend yield similar to the benchmark, has an equivalent return on equity, but has less leverage than the benchmark.
| |
| (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, 2008
(as a percent of net assets)
| | | | | |
| BP PLC | | | 2.0 | % |
| Novartis AG | | | 1.4 | % |
| Royal Dutch Shell PLC – Class B | | | 1.3 | % |
| Roche Holding AG | | | 1.3 | % |
| Total SA | | | 1.3 | % |
| ENI S.p.A. | | | 1.3 | % |
| Siemens AG | | | 1.3 | % |
| HSBC Holdings PLC | | | 1.1 | % |
| BNP Paribas | | | 1.1 | % |
| BHP Billiton PLC | | | 1.1 | % |
Portfolio holdings are subject to change daily.
14
ING International Capital Appreciation Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Capital Appreciation Fund (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 months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (10.18)% compared to the Morgan Stanley Capital International All Country World ex-U.S.sm Index (“MSCI ACWI ex-USsm”),(1) which returned (9.34)% for the same period.
Portfolio Specifics: A deepening and broadening of the credit market woes, as well as continuing evidence pointing to a high probability of a US recession drove the MSCI ACWI ex-U.S.sm lower during the six-month period ended April 30, 2008. All of the major regions within the benchmark were negative during the period, with the Pacific ex-Japan and Emerging Markets regions leading the decline. All ten of the economic sectors posted negative returns during the same period, with consumer discretionary, financials, and industrials leading the decline.
From a regional attribution perspective, emerging markets (i.e., Petroleo Brasileiro SA ADR 26.4%, Samsung Electronics GDR 17.7%) was the largest contributor on a relative basis due to positive security selection and a positive currency effect. The Pacific ex-Japan region also contributed to relative performance, due primarily to positive security selection (i.e.; Rio Tinto Ltd. 26.7%, Woodside Petroleum Ltd. 10.4%). From a regional attribution perspective, Japan was the largest detractor from relative performance due to negative security selection and a negative currency effect (i.e., NGK Insulators Ltd. −45.3%, SMC Corporation −23.6%).
From a sector attribution perspective, telecommunication services (i.e.; MTN Group Ltd. 13.1%, Rogers Communications, Inc. 12.2%) was the largest contributor to relative performance due primarily to positive security selection. Materials (i.e., Syngenta AG 25.7%), financials (i.e., Credit Suisse Group 9.0%) and health care (i.e., Teva Pharmaceutical Industries Ltd. ADR 8.8%) all contributed to positive relative performance. From a sector attribution perspective, utilities (i.e., EDF Energies Nouvelles S.A −12.1%, E.ON AG −2.1%) was the largest detractor from relative performance. The negative security selection in the utilities sector was compounded by a relative underweight position to the sector.
Current Strategy and Outlook: We anticipate potentially more volatile markets in 2008 as the fallout from the credit market crisis continues to be digested. Potential credit issues and earnings disappointments, as well as higher inflation could start to erode real profits in 2008. In our opinion, visibility in terms of both earnings and economic growth also remains limited. Credit conditions may continue to remain tight throughout the remainder of the year.
On a positive note, we believe equity valuations in general, still look attractive compared to bonds. The U.S. Federal Reserve Board has also been very aggressive in cutting short-term interest rates which should provide support for corporate profits and the equity markets in general. There is also relative economic strength in many parts of the world with places such as China experiencing robust gross domestic product growth.
We believe that maintaining a well diversified portfolio of high quality companies with good secular growth stories should prove beneficial in times of uncertainty and could be among the first companies to recover when risk aversion subsides.
| |
| (1) | The MSCI ACWI ex-U.S.sm 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, 2008
(as a percent of net assets)
| | | | | |
| Vestas Wind Systems A/S | | | 2.5 | % |
| Cia Vale do Rio Doce ADR | | | 2.4 | % |
| Petroleo Brasileiro SA ADR | | | 2.1 | % |
| Esprit Holdings Ltd. | | | 2.0 | % |
| BHP Billiton Ltd. | | | 2.0 | % |
| Rio Tinto Ltd. | | | 2.0 | % |
| Iliad SA | | | 1.9 | % |
| Nintendo Co., Ltd. | | | 1.9 | % |
| Banco Santander Central Hispano SA | | | 1.9 | % |
| Millicom International Cellular SA | | | 1.8 | % |
Portfolio holdings are subject to change daily.
15
ING International Equity Dividend Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Equity Dividend Fund (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 months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (9.49)% compared to the Morgan Stanley Capital International World ex-US Indexsm (“MSCI World ex-US Indexsm”)(1), which returned (9.12)% for the same period.
Portfolio Specifics: During the period, high-dividend paying stocks underperformed the broad market and thus detracted from the Fund’s results. Stock selection had a net positive effect for the period, whereas asset allocation had a net negative effect. Stock selection was strongest in energy, utilities and telecoms.
Precision Drilling Trust led energy’s contribution, and was the best performing stock of the Fund. The stock benefited indirectly from rising natural gas prices, better Q4 results and the hope that the Canadian government might lower taxes on such trusts. Petroleo Brasileiros rose as its low reserve replacement ratio improved substantially along with earnings. Rising international oil prices, its emerging market status and Brazil’s credit rating upgrade by S&P helped. In the majors, Total SA and ENI S.p.A. produced positive returns.
Utilities were in demand; investors perceived the sector as able to withstand a global slowdown. Terna rose on good prospects for electricity transmission tariffs. CLP Holdings Ltd. rallied as the Hong Kong government deployed its budget surplus to maintain GDP though infrastructure projects. The company stands to benefit from increasing demand for power and supporting power infrastructure. The company also reported a 2007 net income increase of 7.2% to $1.36 billion. Elia rose 7%. All three companies increased their dividends.
Tate & Lyle PLC clawed back, having lost much ground since its September shock profit warning. Since the cautious January trading update, the US activist investor Harbinger Capital has built its stake up to 15%. Tate & Lyle PLC also regained its place in the FTSE 100 index at the last reshuffle.
Absence from the metals and miners segment of materials (low dividend) meant we missed out on gains. Rexam hurt results after it issued a profit warning in December and suffered again after announcing its full-year earnings in February. Fording Canadian Coal Trust contributed significantly to performance. Market tightness prompted analysts to raise their coal price assumption; merger and acquisition rumors gave an added boost. Fording Canadian Coal Trust’s contribution was not enough to offset the Fund’s underweight in materials, however.
Financials were weak due to the sub-prime contagion. A notable exception was Taiwanese bank Mega Financial. The overall trend was down, however, with the worst detractors being Société Générale, RBS, Barclays PLC and Suncorp-Metway. Earnings fell; write-downs and rights issues followed. Soc Gen and RBS also cut their dividends. Barclays PLC reported a fall in H2 profit of 21% on asset write-downs and a drop in fixed-income trading revenue. Insurer Suncorp said in February that first-half profit tumbled 28% on increased payouts for storms and declining financial markets.
Retailer DSG International PLC cost the Fund the most. The company announced a profit decline early in the period, followed by a later profit warning on weak holiday sales, especially in its PC chain.
Current Strategy and Outlook: In our opinion, the outlook for the strategy remains positive. We believe investments in quality defensive names will give the Fund downside protection and lower volatility. As the global economy has slowed, the Fund has sold expensive sectors (utilities) or ones where we see limited upside (telecoms) and reduced emerging markets exposure. Reinvestment has emphasized cyclicals, consumer staples and health care. We continue to seek sectors or individual stocks to exploit temporary under valuations that often occur.
| |
| (1) | The MSCI World ex-US IndexSM is an unmanaged index that comprises the entire developed world less the United States. The designation of a country as developed arises primarily as a measurement of GDP per capital. |
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, 2008
(as a percent of net assets)
| | | | | |
| ENI S.p.A. | | | 2.0 | % |
| Royal Dutch Shell PLC | | | 2.0 | % |
| Fortis | | | 1.9 | % |
| Total SA | | | 1.9 | % |
| UniCredito Italiano S.p.A. | | | 1.9 | % |
| BP PLC | | | 1.8 | % |
| Enel S.p.A. | | | 1.7 | % |
| AstraZeneca PLC | | | 1.7 | % |
| Banco Bilbao Vizcaya Argentaria SA | | | 1.7 | % |
| Precision Drilling Trust | | | 1.7 | % |
Portfolio holdings are subject to change daily.
16
ING International Growth Opportunities Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Growth Opportunities Fund (the ”Fund”) seeks long-term growth of capital through investment in equity securities and equity equivalents of companies outside the U.S. The Fund is managed by Uri Landesman, Senior Vice President and Head of International Equity, Portfolio Manager of ING Investment Management Co. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (8.62)% compared to the Morgan Stanley Capital International — Europe, Australasia and Far East® Growth Index(1) (”MSCI EAFE® Growth Index”) which returned (7.62)% for the same period.
Portfolio Specifics: The final three months of 2007 presented a rocky scenario that continued into 2008. International markets suffered as a certain degree of “re-coupling” emerged. Much of the turmoil stemmed from the US, which has been affected by a multitude of issues, from a credit crunch, risk of a recession and topping the list, the failure of the once mighty investment bank Bear Stearns. There have been pockets of good news, however, as German and French sentiment has risen and the weak dollar has translated into increased returns overseas.
Security selection was positive during the period, particularly in the consumer staples sector. Asset allocation was negative during the period. The Fund’s underweight and security selection within consumer discretionary bolstered results. In addition, an overweight and selection within materials added value. On a regional level, the Fund’s exposure to non-benchmark North America contributed to results.
The Fund’s overweight and selection in financials detracted from results. An overweight coupled with weak selection in information technology similarly proved unsuccessful. Selection within energy detracted from results. The Fund’s exposure to non-benchmark emerging markets also detracted. Within Europe, an underweight coupled with weak selection hurt performance.
UK video game retailer Game Group PLC saw shares appreciate after reporting a doubling of its profit attributed to strong sales. The Finnish supplier of mining equipment and metal processing, Outotec OYJ, rose on a 51% increase in Q1 pretax profit, stemming from stronger demand. Japanese video game manufacturer Nintendo Co., Ltd. continued to rise on strong profit and sales of its Wii gaming console.
Hyundai Development Co., the Korean housing construction company, saw shares fall due to increasing raw material costs. French retailer PPR fell in the wake of a slowdown of sales in its mature markets; Gucci sales were especially weak. New World Development Ltd. continued to slide in a negative headwind created by the weakened Hong Kong property market.
Current Strategy and Outlook: Consistent with our outlook from last reporting period, we have sought to capitalize on opportunities that the recent downturn has provided. Risks to the upside remain, as inflationary concerns coupled with uncertainty in global markets have the potential to cause above-average volatility. In our opinion, a certain degree of confidence has been restored, however, as evidenced by central banks poised for action. We will seek further opportunities across a wide array of markets.
| |
| (1) | The MSCI EAFE Growth Indexsm is an unmanaged index that measures the performance in 20 countries within Europe, Australasia and the Far East with a greater-than-average growth orientation. |
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, 2008
(as a percent of net assets)
| | | | | |
| Nestle SA | | | 4.8 | % |
| Anglo American PLC | | | 4.3 | % |
| Xstrata PLC | | | 4.0 | % |
| Nokia OYJ | | | 3.6 | % |
| Nintendo Co., Ltd. | | | 3.3 | % |
| Li & Fung Ltd. | | | 2.9 | % |
| Outotec OYJ | | | 2.8 | % |
| Game Group PLC | | | 2.6 | % |
| Reckitt Benckiser PLC | | | 2.6 | % |
| Cosan SA Industria e Comercio | | | 2.6 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
17
ING International Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Real Estate Fund (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 L.P. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (14.25)% compared to the Standard & Poor’s/Citigroup World ex-U.S. Property Index(1) (“S&P/Citigroup World ex-U.S. Property Index”) which returned (15.63)% for the same period.
Portfolio Specifics: International property companies generally posted a negative total return for the period as angst about a weakening economy, continuing problems in the credit markets and decelerating earnings growth forecasts have weighed on the stocks. Promising price movements exhibited in the markets in April and provided some hope that equity markets, including international property stocks, are beginning to firm following proactive moves by the Federal Reserve Bank (the “Fed”), which lowered the federal funds rate by 75 basis points (0.75%) to 2.25% and, separately, provided financial support via a $200 billion lending program to the banking community. The subsequent positive response by equity markets, including real estate investment trusts (“REITs”), helped to advance the argument that the worst of the current credit crunch might be behind us. We continue to believe that property stocks are well-positioned to manage through the current economic environment, despite headwinds which may persist past mid-year.
Fund outperformance for the period was driven by stock selection and country allocation. Stock selection, which accounted for roughly 60% of the period’s outperformance, was especially strong in the Asia-Pacific region as the Fund maintained its tilt towards conservatively-managed companies, defensive property types, and rock-solid balance sheets. Examples of Fund holdings along these lines include Australian global mall operator Westfield Group, Hong Kong shopping center company the Link Real Estate Investment Trust, and Tokyo office landlord Mitsubishi Estate Co., Ltd., all of which soundly outperformed their respective countries’ average return for the period. Conversely, the Fund is avoiding investments in companies with the opposite characteristics, especially companies with above-average leverage or any prospective refinancing concerns. Country allocation decisions added value as relative performance was helped by overweights to outperforming property markets in Brazil, France, and the Netherlands, combined with an underweight to the underperforming markets of Hong Kong, Germany and Spain.
Current Strategy and Outlook: Debt market turmoil and fears of an economic slowdown have weighed on the markets and the resultant withdrawal of liquidity and de-leveraging across many asset classes has added to a general lack of investor confidence. A recession, however, appears to have already been priced into the shares of real estate stocks and we believe the market is implying real estate value declines (i.e., cap rate increases) that are well beyond current private market transactions. In our opinion, real estate stocks look attractive at current levels and continue to trade at discounts to their underlying net asset value. Dividend yields on real estate stocks, which are well-covered, are once again at premiums to their long-term local government bond yields. Price-to-earnings multiples have returned to levels near their long-term average.
The Fund continues its strategy of positioning the portfolio toward well-managed companies, defensive property types and conservative balance sheets while avoiding companies with above-average leverage or any prospective refinancing concerns. At period end, this translated into overweight allocations to the relatively higher-quality property markets of France and the Netherlands and underweight markets where property fundamentals and outlook are not as strong, such as Austria, Germany and Spain.
| |
| (1) | The S&P/Citigroup World ex-U.S. Property Index, is an unmanaged market-weighted total return index which consists of many companies from developed markets, excluding the United States, whose floats are larger than $100 million and derive more than half of their revenue from property-related activities. |
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, 2008
(as a percent of net assets)
| | | | | |
| Mitsubishi Estate Co., Ltd. | | | 7.0 | % |
| Unibail | | | 6.6 | % |
| Westfield Group | | | 6.4 | % |
| Sun Hung Kai Properties Ltd. | | | 6.1 | % |
| Cheung Kong Holdings Ltd. | | | 6.0 | % |
| Mitsui Fudosan Co., Ltd. | | | 5.6 | % |
| Land Securities Group PLC | | | 4.1 | % |
| Stockland | | | 2.4 | % |
| Corio NV | | | 1.9 | % |
| Hammerson PLC | | | 1.9 | % |
| | | |
| | * | Excludes short-term investments related to U.S. government agency obligation. | |
Portfolio holdings are subject to change daily.
18
ING International SmallCap Multi-Manager Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Small Cap Multi-Manager Fund (the “Fund”) seeks maximum long term capital appreciation. The Fund’s assets are managed by three sub-advisers — Acadian Asset Management, Inc. (“Acadian”), Batterymarch Financial Management, Inc. (“Batterymarch”) and Schroder Investment Management North America Inc. (“Schroders”)(1). Each manages a portion of the Fund’s assets that is allocated to the sub-adviser. John Chisholm, CFA, Executive Vice President and Co-Chief Investment Officer and Matthew J. Cohen, CFA, Senior Vice President, Portfolio Managers of Acadian. Charles F. Lovejoy, CFA, Director and senior Portfolio Manager and Christopher F. Floyd, CFA, Portfolio Manager of Batterymarch. Matthew Dobbs, Portfolio Manager of Schroders.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (17.82)% compared to the S&P/Citigroup Extended Market Index World ex-U.S.(2) (“S&P/Citigroup EMI World ex-U.S.”) and the S&P/Citigroup Extended Market Index Europe Pacific Asia Composite Index(3) (“S&P/Citigroup EMI EPAC Index”), which returned (13.92)% and (13.47)%, respectively, for the same period.
Portfolio Specifics: Acadian—The Fund trailed the index for the six-month period, largely as a result of active stock selection. There were a number of markets that saw a negative environment for our approach, including Switzerland, Korea, Australia, Hong Kong and the Netherlands. Finance, materials and service holdings were key sources of underperformance, including such companies as Macquarie DDR Trust and Seven Network Ltd. in Australia, Hanwha Chemical Corp. in Korea and Midland Holdings Ltd. in Hong Kong. There was some value added back from stock selection elsewhere in the Fund, including the UK, where a focus on energy and durables firms was rewarded. From a country weighting perspective the Fund gained from its allocations to Russia and Israel and from underweighting the UK. This was offset, however, by value lost from the underweighting in Switzerland and the allocations to Korea, Turkey and China.
Batterymarch—Batterymarch’s investment process combines fundamental viewpoints with quantitative implementation. Not surprisingly, our stock selection model did not perform well during the period as price movements were often not driven by fundamentals.
Nonetheless, stock selection in continental Europe was strong. The greatest contributor to relative performance was Eramet SLN, a French producer of nickel, manganese and ferro-alloys benefiting from very strong manganese prices. Arques Industries AG, a German investment company that acquires and restructures medium-sized industrial businesses, was the greatest detractor, hurt by concerns over high leverage and low liquidity in the current financial environment.
Selection in Japanese consumer discretionary and industrials sectors also detracted. Takeuchi Manufacturing Co., Ltd., a Japanese manufacturer of construction machinery, was the laggard for that region which saw relative underperformance, due to rising raw materials costs and a stronger yen. Selection in the U.K. was also weak, most notably in the industrials and financials ex banks sectors. The laggard for that region was Southern Cross Healthcare Ltd. whose share price declined 45% from November 2007 to the end of April 2008. In the Australia, New Zealand and Canada region, Australian financials sector holding Babcock & Brown Capital Ltd., negatively impacted relative performance due to it’s negative return of more than 50%. The company was hit by leverage and funding concerns relating to its structured finance and property investments.
| |
| (1) | Schroders began managing its portion of the Fund effective December 17, 2007. |
| (2) | The S&P/Citigroup EMI World ex-U.S. is an unmanaged extended market index of the world market, excluding U.S. extended meaning small capitalization stock universe or bottom 20% of available capital of each country. |
| (3) | The S&P/Citigroup EMI EPAC Index is an unmanaged index which consists of the smaller capitalization stocks of the Citigroup Broad Market Index, and tracks companies in developed countries in the European and Pacific regions. 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, 2008
(as a percent of net assets)
| | | | | |
| Singapore Petroleum Co., Ltd. | | | 2.3 | % |
| Dana Petroleum PLC | | | 2.0 | % |
| Yamato Kogyo Co., Ltd. | | | 1.6 | % |
| Rallye SA | | | 1.5 | % |
| Salzgitter AG | | | 1.2 | % |
| MTU Aero Engines Holding AG | | | 1.1 | % |
| Australian Worldwide Exploration Ltd. | | | 0.9 | % |
| Gildemeister AG | | | 0.9 | % |
| Nexity | | | 0.9 | % |
| Sherritt International Corp. | | | 0.9 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
19
ING International SmallCap Multi-Manager Fund (continued)
Portfolio Managers’ Report
In keeping with our investment process and philosophy which emphasizes bottom up stock selection and risk control, overall region and sector allocations had little impact on relative portfolio performance.
Schroders—International equity markets have been weak over the period, with the deterioration in global growth prospects and continued uncertainties in the credit markets weighing heavily upon sentiment. Smaller companies have been somewhat weaker than larger peers, reflecting a more cyclical sectoral bias, and investor flight to the perceived safety of larger companies. In regional terms, Japan and the continental European markets have been more resilient than the U.K. and smaller Asian markets. In sectoral terms, utilities have proved defensive, while, despite slowing global growth, energy and materials have continued to perform well, supported by fears over supply and continued demand from emerging markets. The relative performance of the Fund has reflected a balance of positive and negative factors. Among the positives has been strong stock selection in the U.K., notably among health care (ClinPhone PLC), consumer cyclical (Inchcape PLC) and industrial (Chloride Group PLC) holdings, and also in Asia ex Japan (Downer EDI, Ltd., First Resources Ltd.). The most significant area of disappointment has been in Japan, where selection was weak among consumer cyclicals (Gulliver International Co.) and materials.
The largest regional exposure for the Fund has been in the continental European markets, but the impact upon relative performance of our positions has been of neutral impact. Stock selection in the industrial (CIR-Compagnie Industriali Riunite S.p.A, Saft Groupe SA, MTU Aero Engines Holding AG) has been poor, partly reflecting investor fears over the impact of the strong euro upon profitability and competitiveness. As a counter balance to this, selection in the energy (SBM Offshore NV, Fugro NV, Bourbon SA), financial (Helvetia Holding AG, Store Electronic) and health care (Schweizerhall Holding AG) has added value.
Current Strategy and Outlook: Acadian—The Fund remains focused on active stock selection, seeking well-valued companies that appear to have strong potential for outperformance based on earnings, price and quality characteristics. Bottom-up stock picking is currently leading the portfolio to overweight Japan, Singapore and Australia, in addition to emerging markets Taiwan, Turkey and Mexico. There is less of an emphasis on Europe, with Belgium, Italy, France, Spain, the U.K. and Switzerland all underweighted.
Batterymarch—Continental Europe remains attractively ranked by our models due to reasonable valuations and strong growth expectations, while Japan has reverted to the least favored major region due in large part to the deterioration in the earnings outlook.
As of April 30, 2008, the Fund remained attractively valued versus the benchmark, with a lower 12 month forward P/E (10.7x vs. 12.5x) and a higher two year forward earnings’ growth rate (15.50% vs. 14.81%).
Schroders—In terms of absolute valuations smaller companies are cheaper than they have been at any time since the 1990/91 recession. We believe that the Fund offers an attractive combination of valuation to growth, and that this growth will prove relatively more resilient given our focus on visibility of earnings. In terms of regional positioning, we aim to be overweight in smaller Asian/emerging markets reflecting attractive valuations and the longer-term underpinnings to domestic demand growth. Our stock selection remains very focused on this and less upon export sensitive stocks for which, we believe, rising costs, worsening demand and currency strength present considerable challenges. In our opinion, this general thrust of caution on export demand/US dollar sensitivity is also evident in the European holdings, although selected currency sensitive stocks are retained on the basis of cheap valuations and strong market positions. Recent purchases, therefore, have been in rather more defensive sectors such as utilities and pharmaceuticals.
An unusual role as “safe haven” has supported Japan in the year to date, as has a recovery in the yen. We remain cautious, and if anything the out-performance has enhanced the relative attractions of opportunities elsewhere. In the U.K., growth remains on a decelerating trend. We believe the monetary authorities are likely to show a greater urgency to ease policy, but are constrained by a weaker currency and headline inflation, while fiscal options are limited. Absolute valuations for smaller companies are reasonable and merger and acquisition activity remains resilient despite the credit conditions. We continue to emphasize specialist industrials and other visible growth stocks over consumer cyclicals.
| |
| | 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. |
20
ING International Value Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Value Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Brandes Investment Partners, L.P. (“Brandes”), the Sub-Adviser. Brandes’ Large Cap Investment Committee is responsible for making the day-to-day investment decisions for the Fund. Glenn R. Carlson, CFA, Chief Executive Officer, Brent V. Woods, CFA, Managing Director — Investments, Amelia Maccoun Morris, CFA, Director — Investments, Brent Fredberg, Senior Analyst, Jim Brown, CFA, Director — Investments and Keith Colestock, CFA, Director — Investments, comprise the voting members of Brandes’ Large Cap Investment Committee.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (8.84)% compared to the Morgan Stanley Capital International — Europe, Australasia and Far East® Index (“MSCI EAFE® Index”)(1), which returned (9.21)% for the same period.
Portfolio Specifics: Stock price declines for the Fund’s holdings in the diversified telecommunication services, pharmaceuticals, and communications equipment industries adversely affected performance during the period. Declines for positions such as Telecom Italia Capital SA (Italy — diversified telecommunication services), Sanofi-Aventis (France — pharmaceuticals), and Nortel Networks Corp. (Canada — communications equipment) were some of the largest detractors in these industries. Negative results for Marks & Spencer PLC (United Kingdom — multiline retail), Alcatel-Lucent (France — communications equipment), and Deutsche Telekom AG (Germany — diversified telecommunication services) also proved unfavorable to the Fund’s return. Conversely, advances registered by securities in the insurance, food & staples retailing, and chemicals industries helped temper declines.
On a country basis, declines for UK-based holdings had the most negative influence on performance. Royal Bank of Scotland Group PLC (United Kingdom — commercial banking), GlaxoSmithKline PLC (United Kingdom — pharmaceuticals), and AstraZeneca PLC (United Kingdom — pharmaceuticals) were among those UK-based positions that experienced some of the greatest share price declines. Other negative contributors included declines for the Fund’s holdings based in France, Germany, and Italy. Simultaneously, Japan-based holdings, such as Mitsubishi UFJ Financial (commercial banking) and Mitsui Sumitomo (insurance), generally advanced during the period.
Relative to the index, the Fund’s lack of exposure to positions in the oil, gas, & consumable fuels and metals & mining industries detracted most from performance. Conversely, stock selection in the insurance industry proved beneficial on a relative basis. Among countries, stock selection coupled with lackluster performance for securities based in the U.K. and France weakened relative returns, while stock selection and overweight exposure in Japan proved favorable. As a reminder, industry exposures are the result of our individual security selection — not top-down industry forecasts.
During the period, we sold select positions as their market prices advanced toward our estimates of their intrinsic values, including Covidien Ltd. (Bermuda — health care equipment & supplies). We sold the Fund’s position in LG Electronics, Inc. (South Korea — household durables) to pursue what we believe to be more attractive opportunities. We also purchased shares of companies at prices that we consider attractive, including Swiss Reinsurance (Switzerland — insurance) and Barclays PLC (United Kingdom — commercial banking).
Note that the Fund’s industry exposure is a result of a focus on fundamentals and valuations of individual companies. We invest in firms that we believe offer a “margin of safety” — companies selling at a price below our estimate of fair value. This often involves investing in unpopular firms and industries. Industry exposures are substantially driven by stock selection, and not by any “industry allocation” decision. We believe quality businesses with margins of safety attractive to us represent compelling opportunities for long-term gains.
Current Strategy and Outlook: 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.
| |
| (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, 2008
(as a percent of net assets)
| | | | | |
| Deutsche Telekom AG | | | 3.8 | % |
| Sanofi-Aventis | | | 3.5 | % |
| Mitsubishi UFJ Financial Group, Inc. | | | 3.5 | % |
| AstraZeneca PLC | | | 3.4 | % |
| GlaxoSmithKline PLC | | | 3.2 | % |
| Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 2.6 | % |
| Sumitomo Mitsui Financial Group, Inc. | | | 2.6 | % |
| Seven & I Holdings Co., Ltd. | | | 2.5 | % |
| Telefonaktiebolaget LM Ericsson | | | 2.5 | % |
| Hitachi Ltd. | | | 2.3 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
21
ING International Value Choice Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Value Choice Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Paul J. Hechmer, Portfolio Manager of Tradewinds Global Investors, LLC — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (5.41)% compared to the Morgan Stanley Capital International — Europe, Australasia, Far East® Index(1) (“MSCI EAFE® Index”), which returned (9.21)% for the same period.
Portfolio Specifics: Although posting absolute negative returns, the Fund experienced strong relative performance in this period of turbulence, outperforming the negative MSCI EAFE® return. Outperformance came from many sectors and regions with the largest contribution to relative outperformance generated from the consumer staples, industrial, and telecommunication (“telecom”) service sectors and regionally from Japan.
As mentioned, one of the top contributors to performance was the consumer staples sector. While the Fund was slightly underweight the sector relative to the benchmark, the holdings therein performed very well during the period. Specifically, Kirin Brewery Co., Ltd., the greatest contributor to performance in the Fund, appreciated considerably during the period based on its ability to successfully push through price increases, from decreased competition due to factory closings by one of its major competitors, and a much improved profit outlook.
In the industrials space, both the Fund’s Japanese printing companies, Dai Nippon Printing Co., Ltd. and Toppan Printing Co., Ltd. performed well. Reported profits were strong and the clear value nature and defensive qualities of these names became apparent in the general market sell-off.
The telecom holdings in the Fund ran the gamut of returns. The Fund continues to be overweight telecom relative to the index, and this sector was one of the poorest performing for the benchmark over the period. Chunghwa Telecom Co., Ltd. was the strongest performer in the group, due in part to a more stable political environment in Taiwan after the conclusion of elections, and more importantly, on the agreement reached with local regulators enabling the company to return capital to shareholders. Conversely, Telecom Italia Capital SA was the worst performer among the sector holdings and the largest detractor from performance in the Fund, amid concerns about credit deterioration and the ability of management to quickly implement a stabilization program to switch more business to the higher-margin mobile segment.
Information technology, whose weighting was greater than that of the index, continued to be one of the poorest performing sectors for the Fund; the sector holdings underperformed versus the benchmark. Alcatel SA, the Franco-American telecom equipment manufacturer, was the largest decliner in the sector.
Though the holdings within the sector posted a range of returns, the materials sector was the leading detractor to the Fund’s performance. The Fund’s positions in Anglogold Ashanti Ltd. ADR, Apex Silver Mines Ltd., Gold Fields Ltd., and Stora Enso OYJ, in particular, were notable detractors of performance over the period, each exhibiting weakness in price as a result of company specific circumstances.
While the weaker US dollar aided the index return by over 4%, our regional positioning, with a significant continued underweight to the Eurozone and exposure to South Africa (the rand fell by over 13%), meant that the Fund only benefited by about 2% in the period, although clearly being aided by their overweight position in Japan and the much stronger yen. From a regional perspective, Fund holdings in Japan performed very strongly, posting returns well above that of the index in US dollar terms.
Current Strategy and Outlook: The market’s early year sell-off was not unanticipated given the generally elevated nature of global equities coming into the end of 2007. Our focus on buying companies trading for less than their intrinsic worth has helped us weather this storm, and we believe market volatility provides us with new opportunities to find value in new places such as the financial sector. While we do not believe the worst is over for this sector or markets in general, the recent correction gives us the opportunity to continue to build a strong Fund of high quality names which we believe will do well over the long term. Japan continues to look attractive, and our exposure has increased at the margin, despite our strong relative performance. Also, in our opinion the health care space is increasingly providing opportunities to buy leading pharmaceutical companies at valuations that give us their pipeline for free.
| |
| (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, 2008
(as a percent of net assets)
| | | | | |
| Nippon Telegraph & Telephone Corp. ADR | | | 4.0 | % |
| Anglogold Ashanti Ltd. ADR | | | 3.8 | % |
| Gemalto NV | | | 3.5 | % |
| BP PLC | | | 3.2 | % |
| Newmont Mining Corp. | | | 3.2 | % |
| Fuji Photo Film Co., Ltd. | | | 3.1 | % |
| Telecom Italia S.p.A. RNC | | | 3.0 | % |
| Barrick Gold Corp. | | | 3.0 | % |
| Dai Nippon Printing Co., Ltd. | | | 3.0 | % |
| Alcatel SA | | | 2.8 | % |
| | | |
| | * | Excludes short-term investments related to U.S. government agency obligation. | |
Portfolio holdings are subject to change daily.
22
ING International Value Opportunities Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING International Value Opportunities Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Nicolas Simar, Senior Investment Manager Equities and Head of the Value Team and Frederic Degembe, Investment Manager Equities, of ING Investment Management Advisors, B.V. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (10.20)% compared to the Morgan Stanley Capital International — Europe, Australasia, Far East® Value Index(1) (“MSCI EAFE® Value Index”) and the Morgan Stanley Capital International — Europe, Australasia, Far East® Index(2) (“MSCI EAFE® Index”), which returned (10.87)% and (9.21)%, respectively for the same period.
Portfolio Specifics: Over the last six months, markets were extremely volatile, as the financial sector in particular went through very tough times. A weak housing market, massive write-downs from established financial houses, a dry-up of liquidity on most of the developed money markets, and solvency issues in many banks pushed the financial sector significantly lower. That, combined with poor economic data, hurt the whole market. Some encouraging results were released in April, however, excluding financials. Investors took these as a sign of relative good health and pushed prices up, recouping some of the earlier losses.
Defensive sectors did better as investors hid during the storm. Consumer staples massively outperformed thanks to stable cash flow and a certain visibility. Also utilities did relatively well, for the same reasons as consumer staples: visibility and solid cash flow even in a downturn. Energy was also a good performer, benefiting from the increase in the crude oil prices.
International portfolios in general were hit hardest by the poor performance of the financials sector. The information technology sector fared worse, driven mostly by a complete de-rating. Industrials were also poor performers, which is typical in a downturn: you tend to sell the cyclical stories. Surprisingly, the telecommunication sector was weak but this was mostly due to the first quarter of 2008, when investors took profits from the stellar performance in 2007.
The Fund’s outperformance was due mainly to good stock selection among consumer durables, particularly the apparel industry; consumer staples; and in financials. Also helpful was an underweight in automobiles and components — part of consumer durables. Mitsubishi UFJ Financial Group, Inc., the Japanese mega-bank, outperformed, particularly in April as it benefited from good economic data and seemed less affected by U.S. toxic financial instruments. The Fund benefited from its positioning in the integrated oil companies: Royal Dutch Shell PLC, BP PLC, Total Real Estate Investment Trusts and Eni S.p.A. contributed strongly to results in the context of a falling market. Telefonaktiebulaget LM Ericsson also was a good performer as we bought the stock after the first profit warning.
Detractors from results included banks such as HBOS PLC and Danske Bank A/S, following bad results and an unexpected right issue (HBOS PLC). Alstria Office AG, the German office real estate company was particularly weak during the period although over the first quarter this year had a good run. Iberdrola SA has been weak also as its takeover premium disappeared.
Current Strategy and Outlook: The issues that we raised in recent reports have gotten bigger. The housing market continues to fall in the United States and in some European countries. In our opinion, commodities are extremely expensive, and may create the next bubble; companies are having greater difficulty maintaining their high margins as input costs go through the roof. Inflation in that context is anything but helpful. Macroeconomic data are weak. In such an environment we believe it is best to invest defensively and possibly later this year move back into the hard-beaten stocks.
| |
| (1) | The MSCI EAFE® Value Index is an unmanaged index consisting of that 50% of the MSCI EAFE® with the lowest Price/Book Value Ratio. Index weightings represent the relative capitalizations of the major overseas markets included in the index on a U.S. dollar adjusted basis. |
| |
| (2) | 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, 2008
(as a percent of net assets)
| | | | | |
| Royal Dutch Shell PLC – Class A | | | 4.3 | % |
| HSBC Holdings PLC | | | 4.0 | % |
| Total SA | | | 3.6 | % |
| Fortis | | | 3.1 | % |
| Banco Santander Central Hispano SA | | | 2.9 | % |
| Vivendi | | | 2.8 | % |
| BP PLC | | | 2.7 | % |
| Sanofi-Aventis | | | 2.7 | % |
| ENI S.p.A. | | | 2.4 | % |
| Mitsubishi UFJ Financial Group, Inc. | | | 2.3 | % |
Portfolio holdings are subject to change daily.
23
ING Russia Fund
Portfolio Managers’ Report
Industry Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Russia Fund (the “Fund”) seeks long-term capital appreciation through investment primarily in equity securities of Russian companies. The Fund is managed by Jan-Wim Derks and Gus Robertson(1) of ING Investment Management Advisors, B.V. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (1.31)% compared to the Morgan Stanley Capital International Emerging Markets (“MSCI EM”) Indexsm(2) and the Russian Trading System (“RTS”) Index(3), which returned (10.28)% and (4.43)%, respectively, for the same period.
Portfolio Specifics: Over the last six months global equity markets experienced significant levels of volatility and Russia was no exception. Though Russian equities were particularly strong in the last months of 2007, early in 2008 the market was dragged down by deteriorating global sentiment. Over a period of 7 trading days in January the RTS Index lost almost 20%. Since then, Russia has recovered most of the loss.
The Fund was overweight materials, which was one of the main drivers of performance. Mechel Steel was one of the largest single overweight positions at the start of the period and has risen some 70% since then. The Fund continues to hold this name but has trimmed it’s position. Early in 2008 the Fund made investments in Uralkaliy (potash/fertilizer) and Raspadskaya (coal), which also have been strong performers.
A zero weighting in VTB Bank OJSC GDR, Russia’s second largest bank, benefited the Fund’s relative performance. A small, off-index position in Bank St. Petersburg BRD added value as the stock rose 12% despite the larger banking stock losses. Another contributor was the significant underweight in utilities.
Detractors from results were largely stock-specific. Pipeline operator Transneft has been out of favor as investors are losing faith that the company is being run in the best interests of minority shareholders. The Fund has exited this position. TMK OAO Pipe’s first quarter production volumes deteriorated and the stock lost more than 25%. The Fund continues to hold this position as we believe the problem is temporary and the stock provides interesting exposure to the Russian infrastructure theme. A position in real estate developer Open Investments also detracted. Additionally, due to diversification requirements, the Fund is structurally underweight the integrated oil & gas industry group, which has detracted from performance.
Current Outlook and Strategy: The portfolio managers have a positive outlook on the Russian market for a number of reasons: (1) in our opinion, political uncertainty has been removed with the passing of the elections and the smooth transition to the new president, Dmitry Medvedev, while former president, Vladimir Putin, has been appointed Prime Minister; (2) commodity prices remain at historically high levels, and even if they fall somewhat we believe the Russian commodity companies will be very profitable; (3) valuations are attractive relative to emerging market peers; (4) the government is taking steps to provide tax relief to the oil sector, which, in our opinion, suffers from a particularly burdensome tax regime; and (5) we believe the macroeconomic outlook is strong which should provide a solid platform for corporate earnings growth.
The focus of the portfolio is not likely to change dramatically in the near term as we believe the infrastructure and domestic consumption related stories will continue to play out. Materials and the consumer sectors are thus likely to remain overweighted and we continue to look for further ways of playing these themes. This is financed by the underweights in utilities, financials and energy. Despite the Fund’s structural underweight in energy, the positions in oil stocks are likely to be adjusted according to the expected favorable changes in the tax regime, while in the steel sector it looks increasingly likely that less favorable tax changes will be implemented.
| |
| (1) | Mr. Robertson was added as a portfolio manager to the Fund effective January 1, 2008. |
| (2) | 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 net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
| (3) | 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. |
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, 2008
(as a percent of net assets)
| | | | | |
| Sberbank RF | | | 13.5 | % |
| Lukoil-Spon ADR | | | 13.0 | % |
| OAO Gazprom | | | 10.3 | % |
| OAO Gazprom ADR | | | 6.7 | % |
| OAO Rosneft Oil Co. GDR | | | 4.9 | % |
| MMC Norilsk Nickel ADR | | | 4.5 | % |
| Mechel OAO ADR | | | 3.4 | % |
| Novatek OAO GDR | | | 3.0 | % |
| Uralkali GDR | | | 3.0 | % |
| Tatneft GDR | | | 2.7 | % |
| | | |
| | * | Excludes short-term investments related to securities lending collateral. | |
Portfolio holdings are subject to change daily.
24
ING Emerging Markets Fixed Income Fund
Portfolio Managers’ Report
Country Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Emerging Markets Fixed Income Fund (the “Fund”) seeks to maximize total return. The Fund is managed by Gorky Urquieta, Senior Investment Manager and Daniel Eustaquio, Senior Portfolio Manager, of ING Investment Management Advisors, B.V. — the Sub-Adviser.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (0.82)% compared to the JPMorgan Emerging Markets Bond Index Global Diversified(1) (“JPMorgan EMB Index Global Diversified”), which returned 1.90% for the same period.
Portfolio Specifics: The credit crunch took front stage again in November. Spreads of risky assets surged higher across the board. Central Banks supplied record amounts of liquidity to the banking system to relieve money market/inter bank stress. The first months of 2008 started dramatically for many asset classes: new economic data indicated a U.S. recession, large mono-line insurers might be in danger of losing their AAA ratings, fraud at Societé Generale. Equity markets tumbled, spreads on credits and high yields widened considerably.
Negative headlines dominated the first quarter with the bail-out of Bear Stearns as a climax. The Federal Reserve Board (the “Fed”) took aggressive measures to calm the financial markets (rate cuts, supplying the banks and brokers with liquidity etc). Emerging market debt lost ground but outperformed other risky fixed income asset classes such as high yield and credits.
Over the reporting period the Fund underperformed the benchmark. Overweights in higher beta countries, e.g., Argentine and Venezuela, were amongst the main causes of underperformance. The Fund’s lower average credit quality detracted from results in the market turmoil.
Current Strategy and Outlook: The Fund is positioned with a small overweight of spread duration. Overweight positions are mainly in higher-spread countries, funded by underweights in lower-spread countries. In instrument selection we have a moderate corporate credit exposure focused mostly on higher rated credits in a good position to benefit from high growth in emerging markets.
The local component has a moderate foreign currency risk, with Latin America having the most attractive currencies in our view. Further we have moderate positions in local interest rate duration in several countries, the most attractive of which are in countries where real rates are higher than improved macro stability would warrant.
| |
| (1) | The JPMorgan EMB Index Global Diversified is a uniquely-weighted version of the Emerging Markets Bond Index Global. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding. |
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, 2008
(as a percent of net assets)
| | | | | |
| Russia Government International Bond, 7.500%, due 03/31/30 | | | 4.1 | % |
| Russia Government International Bond, 12.750%, due 06/24/28 | | | 3.4 | % |
| Petroleos de Venezuela SA, 5.375%, due 04/12/27 | | | 2.8 | % |
| Brazil Government International Bond, 7.125%, due 01/20/37 | | | 2.4 | % |
| Republic of Turkey, 7.000%, due 09/26/16 | | | 2.2 | % |
| Republic of Iraq, 5.800%, due 01/15/28 | | | 2.1 | % |
| Republic of Colombia, 7.375%, due 01/27/17 | | | 2.0 | % |
| Philippine Government International Bond, 8.250%, due 01/15/14 | | | 1.8 | % |
| Petroleos de Venezuela SA, 5.250%, due 04/12/17 | | | 1.7 | % |
| Turkey Government International Bond, 9.500%, due 01/15/14 | | | 1.6 | % |
Portfolio holdings are subject to change daily.
25
ING Global Bond Fund
Portfolio Managers’ Report
Investment Type Allocation
as of April 30, 2008
(as a percent of net assets)
Portfolio holdings are subject to change daily.
ING Global Bond Fund (the ”Fund”) seeks to maximize total return through a combination of current income and capital appreciation. The Fund is managed by James B. Kauffmann, Portfolio Manager of ING Investment Management Co. — the Sub-Adviser.
Performance: For the six-month period ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of 8.91% compared to the Lehman Brothers Global Aggregate Index(1) (the ”Index”), which returned 6.27% for the same period.
Portfolio Specifics: The past six months were marked by continued market turmoil, as mortgage, credit and liquidity problems proved to be anything but contained, and the distress in the financial markets coincided with a downturn in the global economy. In the US, the employment continued to deteriorate, manufacturing was extremely weak and consumer confidence plummeted on soaring gas prices and sinking home prices. The UK also began to show weakness, as falling home prices and tighter credit pushed consumer confidence to a 13-year low.
The main focus in the euro region was on inflation, which soared to a 16-year high in March, putting it above the European Central Bank’s (“ECB”) comfort zone. Higher inflation caused consumer and business confidence to weaken, but the ECB made it apparent that their only focus is price stability. Japan continued to be weighed down by a lackluster domestic economy, a soft labor market, unimpressive consumption and declining housing.
One of our highest-conviction views was that the UK would be the next country under pressure, and that the rest of the world would not escape the impact of a U.S. slowdown. Accordingly, the Fund held more interest rate exposure in the UK, Germany and Canada than the benchmark. These exposures benefited the Fund as yields dropped globally. The Fund benefited significantly from being positioned for a steeper U.S. yield curve, as the short maturity bonds outperformed longer maturity bonds. Also, the Fund benefited from being underweight the dollar. At certain times throughout the period, the Fund was overweight the euro and the Japanese yen.
The Fund benefited from a significant position in the Norwegian krone and from an underweight exposure to the British pound. A sizeable underweight to the corporate and mortgage sectors also helped performance. As credit and securitized spreads reached all-time wide levels, the Fund had far less exposure to these assets than did the benchmark and gained from holding protection on certain credit names.
Current Strategy and Outlook: Our outlook for the US economy remains negative. In our opinion, unemployment and consumer confidence have gotten decidedly worse. We believe confidence and spending will not pick up until a bottom in house prices is in sight, and this seems like a far-off event. While further interest rate cuts seem necessary, the Federal Reserve Board (the “Fed”) seems to be on hold and more inclined to use alternative policy actions. We are shifting some focus to global growth, where less easing is priced in and more opportunities remain. In our opinion, the UK in particular seems to be the most vulnerable, with falling house prices, highly levered consumers, and interbank lending issues that are worse than those in the US.
With a global economic decline looming, and the US economy being stimulated by fiscal and monetary actions, we believe the US dollar should eventually benefit. We intend to take advantage of depreciations in the euro and British pound. We think the ultimate direction for the US yield curve is steeper, and we will remain in positions which seek to capture this movement in various markets, as we believe short-term interest rates are eventually set to come down globally.
| |
| (1) | The Lehman Brothers Global Aggregate Index provides a broad based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. |
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, 2008
(as a percent of net assets)
| | | | | |
| Bundesobligation, 3.500%, due 04/08/11 | | | 12.2 | % |
| U.S. Treasury Note, 3.125%, due 04/30/13 | | | 6.9 | % |
| Bundesrepub. Deutschland, 4.250%, due 07/04/17 | | | 4.8 | % |
| Japan Government CPI Linked, 1.200%, due 12/10/17 | | | 3.7 | % |
| United Kingdom Gilt Bond, 4.000%, due 03/07/09 | | | 2.9 | % |
| U.S. Treasury Bond, 3.500%, due 02/15/18 | | | 2.9 | % |
| U.S. Treasury Note, 2.125%, due 04/30/10 | | | 2.8 | % |
| U.S. Treasury Note, 1.750%, due 03/31/10 | | | 2.8 | % |
| Federal Home Loan Mortgage Corporation, 5.500%, due 05/01/37 | | | 2.6 | % |
| Japan Financing Bills, 0.520%, due 06/09/08 | | | 2.1 | % |
| | | |
| | * | Excludes short-term investments related to ING Institutional Prime Money Market Fund and foreign Government Securities. | |
Portfolio holdings are subject to change daily.
26
ING Diversified International Fund
Portfolio Managers’ Report
Asset Allocation
as of April 30, 2008
(as a percentage of net assets)
Portfolio holdings are subject to change daily.
ING Diversified International Fund (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 Investment Review Committee.(1)
Portfolio Specifics: The Fund’s approximate target investment allocations (expressed as a percentage of its net assets) among the asset classes in which the Fund invests in are set out below. As these are target allocations, the actual allocations of the Fund’s assets may deviate from the percentages shown.
The Investment Review Committee allocates the Fund’s assets among the Underlying Funds based on advice from the ING Investment Management Co., a consultant to the Investment Committee. The performance of the Fund reflects the performance of the Underlying Funds 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.
Performance: For the six months ended April 30, 2008, the Fund’s Class A shares, excluding sales charges, provided a total return of (10.82)% compared to the Morgan Stanley Capital International All Country World ex U.S. Indexsm(2) (“MSCI ACWI ex U.S.sm”) which retuned (9.34)% for the same period.
The Fund’s underperformance to the benchmark is related to the performance of the Underlying Funds and the weightings in the Underlying Funds relative to that of the benchmark. Specifically the Fund’s underperformance was caused by the relative underperformance of ING Index Plus International Equity Fund, ING International SmallCap Multi-Manager Fund, ING Foreign Fund and ING International Capital Appreciation Fund. This underperformance was only slightly offset by the relative contribution from the ING International Real Estate Fund, ING International Equity Dividend Fund, ING Emerging Countries Fund and ING International Value Choice Fund.
The majority of the underperformance of the Fund arose due to differences in the makeup of the benchmark and the holdings of the Fund. Small-cap and real estate were the worst-performing asset classes, and, as non-benchmark holdings, they dragged down Fund performance.
Current Strategy and Outlook: The outlook for small cap stocks is fundamentally tied to the strength of local and regional economies, and with the economic outlook less robust than in the recent past, small cap stocks in Europe and the UK suggests a reduction of exposure to this relatively risky class is warranted. Based on this assessment, we tactically reduced our exposure in international small cap to an underweight position. We also reduced our exposure to emerging markets to a neutral position believing that despite their continued strong price momentum, emerging markets have more downside risk than upside potential. We increased the allocation to international core, and are now modestly overweight. We view this asset class as the least risky of those available. Finally, we removed our long-held underweight in real estate. This asset class has seen such large declines in value that we view it highly improbable that such negative relative performance will repeat itself, and we view the risk remaining underweight as greater than potential underperformance. We remain underweight in large value and overweight in large growth. It is our view that opportunities within international markets may continue migrating toward the growth space, causing us to favor growth in a rising rate environment, in which the earnings outlooks for financial stocks, which comprise a significant portion of the value portion of the benchmark, remain relatively unfavorable.
| |
| (1) | The members of the Investment Review Committee are: William A. Evans, Michael J. Roland, and Paul Zemsky. Effective December 31, 2007, Paul Zemsky replaced Stan D. Vyner as a member of the Investment Review Committee. |
| |
| (2) | The MSCI ACWI ex U.S.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. Actual weights of underlying funds are subject to change daily based on market activity. Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics.
Target Allocation
| | | | | |
| International Core | | | 37 | % |
| International Growth | | | 20 | % |
| International Value | | | 15 | % |
| International Small Cap | | | 8 | % |
| Emerging Markets | | | 15 | % |
| International Real Estate | | | 5 | % |
Portfolio holdings are subject to change.
27
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, 2007 to April 30, 2008. 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 first section of the table shown, “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 second section of the table shown, “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.
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING Global Equity Dividend Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 895.70 | | | | 1.37 | % | | $ | 6.46 | |
| Class B | | | 1,000.00 | | | | 892.00 | | | | 2.12 | | | | 9.97 | |
| Class C | | | 1,000.00 | | | | 892.40 | | | | 2.12 | | | | 9.97 | |
| Class I | | | 1,000.00 | | | | 898.50 | | | | 0.99 | | | | 4.67 | |
| Class O | | | 1,000.00 | | | | 895.20 | | | | 1.38 | | | | 6.50 | |
Class W(a) | | | 1,000.00 | | | | 1,031.50 | | | | 0.99 | | | | 2.20 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,018.05 | | | | 1.37 | % | | $ | 6.87 | |
| Class B | | | 1,000.00 | | | | 1,014.32 | | | | 2.12 | | | | 10.62 | |
| Class C | | | 1,000.00 | | | | 1,014.32 | | | | 2.12 | | | | 10.62 | |
| Class I | | | 1,000.00 | | | | 1,019.94 | | | | 0.99 | | | | 4.97 | |
| Class O | | | 1,000.00 | | | | 1,018.00 | | | | 1.38 | | | | 6.92 | |
| Class W | | | 1,000.00 | | | | 1,019.94 | | | | 0.99 | | | | 4.97 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflect the 79 day period ended April 30, 2008. |
28
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING Global Natural Resources Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,035.10 | | | | 1.43 | % | | $ | 7.24 | |
| Class I | | | 1,000.00 | | | | 1,037.30 | | | | 1.08 | | | | 5.47 | |
Class W(a) | | | 1,000.00 | | | | 1,145.60 | | | | 1.08 | | | | 2.50 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.75 | | | | 1.43 | % | | $ | 7.17 | |
| Class I | | | 1,000.00 | | | | 1,019.49 | | | | 1.08 | | | | 5.42 | |
| Class W | | | 1,000.00 | | | | 1,019.49 | | | | 1.08 | | | | 5.42 | |
| | | | | | | | | | | | | | | | | |
ING Global Real Estate Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 885.50 | | | | 1.36 | % | | $ | 6.38 | |
| Class B | | | 1,000.00 | | | | 881.70 | | | | 2.11 | | | | 9.87 | |
| Class C | | | 1,000.00 | | | | 882.10 | | | | 2.11 | | | | 9.87 | |
| Class I | | | 1,000.00 | | | | 886.90 | | | | 1.00 | | | | 4.69 | |
| Class O | | | 1,000.00 | | | | 885.00 | | | | 1.36 | | | | 6.37 | |
Class W(a) | | | 1,000.00 | | | | 1,087.40 | | | | 1.00 | | | | 2.25 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,018.10 | | | | 1.36 | % | | $ | 6.82 | |
| Class B | | | 1,000.00 | | | | 1,014.37 | | | | 2.11 | | | | 10.57 | |
| Class C | | | 1,000.00 | | | | 1,014.37 | | | | 2.11 | | | | 10.57 | |
| Class I | | | 1,000.00 | | | | 1,019.89 | | | | 1.00 | | | | 5.02 | |
| Class O | | | 1,000.00 | | | | 1,018.10 | | | | 1.36 | | | | 6.82 | |
| Class W | | | 1,000.00 | | | | 1,019.89 | | | | 1.00 | | | | 5.02 | |
| | | | | | | | | | | | | | | | | |
ING Global Value Choice Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 912.90 | | | | 1.58 | % | | $ | 7.51 | |
| Class B | | | 1,000.00 | | | | 909.70 | | | | 2.29 | | | | 10.87 | |
| Class C | | | 1,000.00 | | | | 909.80 | | | | 2.29 | | | | 10.87 | |
| Class I | | | 1,000.00 | | | | 914.60 | | | | 1.19 | | | | 5.66 | |
| Class Q | | | 1,000.00 | | | | 913.50 | | | | 1.44 | | | | 6.85 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.01 | | | | 1.58 | % | | $ | 7.92 | |
| Class B | | | 1,000.00 | | | | 1,013.48 | | | | 2.29 | | | | 11.46 | |
| Class C | | | 1,000.00 | | | | 1,013.48 | | | | 2.29 | | | | 11.46 | |
| Class I | | | 1,000.00 | | | | 1,018.95 | | | | 1.19 | | | | 5.97 | |
| Class Q | | | 1,000.00 | | | | 1,017.70 | | | | 1.44 | | | | 7.22 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflect the 79 day period ended April 30, 2008. |
29
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING Asia-Pacific Real Estate Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 805.30 | | | | 1.75 | % | | $ | 7.86 | |
| Class B | | | 1,000.00 | | | | 802.10 | | | | 2.50 | | | | 11.20 | |
| Class C | | | 1,000.00 | | | | 802.50 | | | | 2.50 | | | | 11.20 | |
| Class I | | | 1,000.00 | | | | 805.20 | | | | 1.50 | | | | 6.73 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,016.16 | | | | 1.75 | % | | $ | 8.77 | |
| Class B | | | 1,000.00 | | | | 1,012.43 | | | | 2.50 | | | | 12.51 | |
| Class C | | | 1,000.00 | | | | 1,012.43 | | | | 2.50 | | | | 12.51 | |
| Class I | | | 1,000.00 | | | | 1,017.40 | | | | 1.50 | | | | 7.52 | |
| | | | | | | | | | | | | | | | | |
ING Disciplined International SmallCap Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 844.80 | | | | 1.07 | % | | $ | 4.91 | |
| Class B | | | 1,000.00 | | | | 841.30 | | | | 1.82 | | | | 8.33 | |
| Class C | | | 1,000.00 | | | | 841.30 | | | | 1.82 | | | | 8.33 | |
| Class I | | | 1,000.00 | | | | 845.60 | | | | 0.82 | | | | 3.76 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,019.54 | | | | 1.07 | % | | $ | 5.37 | |
| Class B | | | 1,000.00 | | | | 1,015.81 | | | | 1.82 | | | | 9.12 | |
| Class C | | | 1,000.00 | | | | 1,015.81 | | | | 1.82 | | | | 9.12 | |
| Class I | | | 1,000.00 | | | | 1,020.79 | | | | 0.82 | | | | 4.12 | |
| | | | | | | | | | | | | | | | | |
ING Emerging Countries Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 932.40 | | | | 1.90 | % | | $ | 9.13 | |
| Class B | | | 1,000.00 | | | | 928.70 | | | | 2.65 | | | | 12.71 | |
| Class C | | | 1,000.00 | | | | 929.10 | | | | 2.65 | | | | 12.71 | |
| Class I | | | 1,000.00 | | | | 933.80 | | | | 1.57 | | | | 7.55 | |
| Class Q | | | 1,000.00 | | | | 932.80 | | | | 1.83 | | | | 8.79 | |
Class W(a) | | | 1,000.00 | | | | 1,072.70 | | | | 1.54 | | | | 3.44 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,015.42 | | | | 1.90 | % | | $ | 9.52 | |
| Class B | | | 1,000.00 | | | | 1,011.69 | | | | 2.65 | | | | 13.25 | |
| Class C | | | 1,000.00 | | | | 1,011.69 | | | | 2.65 | | | | 13.25 | |
| Class I | | | 1,000.00 | | | | 1,017.06 | | | | 1.57 | | | | 7.87 | |
| Class Q | | | 1,000.00 | | | | 1,015.76 | | | | 1.83 | | | | 9.17 | |
| Class W | | | 1,000.00 | | | | 1,017.21 | | | | 1.54 | | | | 7.72 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflect the 79 day period ended April 30, 2008. |
30
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING European Real Estate Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 944.30 | | | | 1.75 | % | | $ | 8.46 | |
| Class B | | | 1,000.00 | | | | 940.50 | | | | 2.50 | | | | 12.06 | |
| Class C | | | 1,000.00 | | | | 939.80 | | | | 2.50 | | | | 12.06 | |
| Class I | | | 1,000.00 | | | | 946.20 | | | | 1.50 | | | | 7.26 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,016.16 | | | | 1.75 | % | | $ | 8.77 | |
| Class B | | | 1,000.00 | | | | 1,012.43 | | | | 2.50 | | | | 12.51 | |
| Class C | | | 1,000.00 | | | | 1,012.43 | | | | 2.50 | | | | 12.51 | |
| Class I | | | 1,000.00 | | | | 1,017.40 | | | | 1.50 | | | | 7.52 | |
| | | | | | | | | | | | | | | | | |
ING Foreign Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 899.20 | | | | 1.56 | % | | $ | 7.37 | |
| Class B | | | 1,000.00 | | | | 895.20 | | | | 2.31 | | | | 10.88 | |
| Class C | | | 1,000.00 | | | | 895.80 | | | | 2.31 | | | | 10.89 | |
| Class I | | | 1,000.00 | | | | 900.80 | | | | 1.24 | | | | 5.86 | |
| Class Q | | | 1,000.00 | | | | 899.60 | | | | 1.49 | | | | 7.04 | |
Class W(a) | | | 1,000.00 | | | | 1,050.80 | | | | 1.23 | | | | 2.72 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.11 | | | | 1.56 | % | | $ | 7.82 | |
| Class B | | | 1,000.00 | | | | 1,013.38 | | | | 2.31 | | | | 11.56 | |
| Class C | | | 1,000.00 | | | | 1,013.38 | | | | 2.31 | | | | 11.56 | |
| Class I | | | 1,000.00 | | | | 1,018.70 | | | | 1.24 | | | | 6.22 | |
| Class Q | | | 1,000.00 | | | | 1,017.45 | | | | 1.49 | | | | 7.47 | |
| Class W | | | 1,000.00 | | | | 1,018.75 | | | | 1.23 | | | | 6.17 | |
| | | | | | | | | | | | | | | | | |
ING Greater China Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 816.80 | | | | 1.87 | % | | $ | 8.45 | |
| Class B | | | 1,000.00 | | | | 814.10 | | | | 2.62 | | | | 11.82 | |
| Class C | | | 1,000.00 | | | | 813.80 | | | | 2.62 | | | | 11.82 | |
| Class I | | | 1,000.00 | | | | 818.20 | | | | 1.62 | | | | 7.32 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,015.56 | | | | 1.87 | % | | $ | 9.37 | |
| Class B | | | 1,000.00 | | | | 1,011.83 | | | | 2.62 | | | | 13.11 | |
| Class C | | | 1,000.00 | | | | 1,011.83 | | | | 2.62 | | | | 13.11 | |
| Class I | | | 1,000.00 | | | | 1,016.81 | | | | 1.62 | | | | 8.12 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflect the 79 day period ended April 30, 2008. |
31
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING Index Plus International Equity Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 883.00 | | | | 1.51 | % | | $ | 7.07 | |
| Class B | | | 1,000.00 | | | | 879.40 | | | | 2.26 | | | | 10.56 | |
| Class C | | | 1,000.00 | | | | 880.20 | | | | 2.26 | | | | 10.57 | |
| Class I | | | 1,000.00 | | | | 884.80 | | | | 1.21 | | | | 5.67 | |
Class O(a) | | | 1,000.00 | | | | 941.20 | | | | 1.51 | | | | 6.85 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.35 | | | | 1.51 | % | | $ | 7.57 | |
| Class B | | | 1,000.00 | | | | 1,013.63 | | | | 2.26 | | | | 11.31 | |
| Class C | | | 1,000.00 | | | | 1,013.63 | | | | 2.26 | | | | 11.31 | |
| Class I | | | 1,000.00 | | | | 1,018.85 | | | | 1.21 | | | | 6.07 | |
| Class O | | | 1,000.00 | | | | 1,017.35 | | | | 1.51 | | | | 7.57 | |
| | | | | | | | | | | | | | | | | |
ING International Capital Appreciation Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 898.20 | | | | 1.50 | % | | $ | 7.08 | |
| Class B | | | 1,000.00 | | | | 895.40 | | | | 2.25 | | | | 10.60 | |
| Class C | | | 1,000.00 | | | | 895.30 | | | | 2.25 | | | | 10.60 | |
| Class I | | | 1,000.00 | | | | 900.30 | | | | 1.16 | | | | 5.48 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.40 | | | | 1.50 | % | | $ | 7.52 | |
| Class B | | | 1,000.00 | | | | 1,013.67 | | | | 2.25 | | | | 11.27 | |
| Class C | | | 1,000.00 | | | | 1,013.67 | | | | 2.25 | | | | 11.27 | |
| Class I | | | 1,000.00 | | | | 1,019.10 | | | | 1.16 | | | | 5.82 | |
| | | | | | | | | | | | | | | | | |
ING International Equity Dividend Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 905.10 | | | | 1.40 | % | | $ | 6.63 | |
| Class B | | | 1,000.00 | | | | 901.50 | | | | 2.15 | | | | 10.16 | |
| Class C | | | 1,000.00 | | | | 901.70 | | | | 2.15 | | | | 10.17 | |
| Class I | | | 1,000.00 | | | | 907.00 | | | | 1.15 | | | | 5.45 | |
Class W(b) | | | 1,000.00 | | | | 1,070.50 | | | | 1.00 | | | | 2.23 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.90 | | | | 1.40 | % | | $ | 7.02 | |
| Class B | | | 1,000.00 | | | | 1,014.17 | | | | 2.15 | | | | 10.77 | |
| Class C | | | 1,000.00 | | | | 1,014.17 | | | | 2.15 | | | | 10.77 | |
| Class I | | | 1,000.00 | | | | 1,019.14 | | | | 1.15 | | | | 5.77 | |
| Class W | | | 1,000.00 | | | | 1,019.89 | | | | 1.00 | | | | 5.02 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was November 12, 2007. Expenses paid reflect 171 day period ended April 30, 2008. |
| |
| (b) | Commencement of operations was February 12, 2008. Expenses paid reflect the 79 day period ended April 30, 2008. |
32
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING International Growth Opportunities Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 913.80 | | | | 1.70 | % | | $ | 8.09 | |
| Class B | | | 1,000.00 | | | | 910.30 | | | | 2.45 | | | | 11.64 | |
| Class C | | | 1,000.00 | | | | 911.20 | | | | 2.45 | | | | 11.64 | |
| Class I | | | 1,000.00 | | | | 916.00 | | | | 1.33 | | | | 6.34 | |
| Class Q | | | 1,000.00 | | | | 915.50 | | | | 1.36 | | | | 6.48 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,016.41 | | | | 1.70 | % | | $ | 8.52 | |
| Class B | | | 1,000.00 | | | | 1,012.68 | | | | 2.45 | | | | 12.26 | |
| Class C | | | 1,000.00 | | | | 1,012.68 | | | | 2.45 | | | | 12.26 | |
| Class I | | | 1,000.00 | | | | 1,018.25 | | | | 1.33 | | | | 6.67 | |
| Class Q | | | 1,000.00 | | | | 1,018.10 | | | | 1.36 | | | | 6.82 | |
| | | | | | | | | | | | | | | | | |
ING International Real Estate Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 857.50 | | | | 1.50 | % | | $ | 6.93 | |
| Class B | | | 1,000.00 | | | | 854.20 | | | | 2.25 | | | | 10.37 | |
| Class C | | | 1,000.00 | | | | 854.30 | | | | 2.25 | | | | 10.37 | |
| Class I | | | 1,000.00 | | | | 858.90 | | | | 1.20 | | | | 5.55 | |
Class W(a) | | | 1,000.00 | | | | 1,054.40 | | | | 1.53 | | | | 3.39 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,017.40 | | | | 1.50 | % | | $ | 7.52 | |
| Class B | | | 1,000.00 | | | | 1,013.67 | | | | 2.25 | | | | 11.27 | |
| Class C | | | 1,000.00 | | | | 1,013.67 | | | | 2.25 | | | | 11.27 | |
| Class I | | | 1,000.00 | | | | 1,018.90 | | | | 1.20 | | | | 6.02 | |
| Class W | | | 1,000.00 | | | | 1,017.26 | | | | 1.53 | | | | 7.67 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflects the 79 day period ended April 30, 2008. |
33
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING International SmallCap Multi-Manager Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 821.80 | | | | 1.66 | % | | $ | 7.52 | |
| Class B | | | 1,000.00 | | | | 818.90 | | | | 2.31 | | | | 10.45 | |
| Class C | | | 1,000.00 | | | | 819.10 | | | | 2.31 | | | | 10.45 | |
| Class I | | | 1,000.00 | | | | 823.50 | | | | 1.27 | | | | 5.76 | |
| Class Q | | | 1,000.00 | | | | 822.40 | | | | 1.52 | | | | 6.89 | |
Class W(a) | | | 1,000.00 | | | | 1,079.90 | | | | 1.21 | | | | 2.72 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,016.61 | | | | 1.66 | % | | $ | 8.32 | |
| Class B | | | 1,000.00 | | | | 1,013.38 | | | | 2.31 | | | | 11.56 | |
| Class C | | | 1,000.00 | | | | 1,013.38 | | | | 2.31 | | | | 11.56 | |
| Class I | | | 1,000.00 | | | | 1,018.55 | | | | 1.27 | | | | 6.37 | |
| Class Q | | | 1,000.00 | | | | 1,017.30 | | | | 1.52 | | | | 7.62 | |
| Class W | | | 1,000.00 | | | | 1,018.85 | | | | 1.21 | | | | 6.07 | |
| | | | | | | | | | | | | | | | | |
ING International Value Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 911.60 | | | | 1.59 | % | | $ | 7.56 | |
| Class B | | | 1,000.00 | | | | 908.50 | | | | 2.29 | | | | 10.87 | |
| Class C | | | 1,000.00 | | | | 909.10 | | | | 2.14 | | | | 10.16 | |
| Class I | | | 1,000.00 | | | | 913.00 | | | | 1.24 | | | | 5.90 | |
| Class Q | | | 1,000.00 | | | | 913.20 | | | | 1.24 | | | | 5.90 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,016.96 | | | | 1.59 | % | | $ | 7.97 | |
| Class B | | | 1,000.00 | | | | 1,013.48 | | | | 2.29 | | | | 11.46 | |
| Class C | | | 1,000.00 | | | | 1,014.22 | | | | 2.14 | | | | 10.72 | |
| Class I | | | 1,000.00 | | | | 1,018.70 | | | | 1.24 | | | | 6.22 | |
| Class Q | | | 1,000.00 | | | | 1,018.70 | | | | 1.24 | | | | 6.22 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflects the 79 day period ended April 30, 2008. |
34
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING International Value Choice Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 945.90 | | | | 1.64 | % | | $ | 7.93 | |
| Class B | | | 1,000.00 | | | | 942.50 | | | | 2.39 | | | | 11.54 | |
| Class C | | | 1,000.00 | | | | 942.50 | | | | 2.39 | | | | 11.54 | |
| Class I | | | 1,000.00 | | | | 947.70 | | | | 1.31 | | | | 6.34 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,016.71 | | | | 1.64 | % | | $ | 8.22 | |
| Class B | | | 1,000.00 | | | | 1,012.98 | | | | 2.39 | | | | 11.96 | |
| Class C | | | 1,000.00 | | | | 1,012.98 | | | | 2.39 | | | | 11.96 | |
| Class I | | | 1,000.00 | | | | 1,018.35 | | | | 1.31 | | | | 6.57 | |
| | | | | | | | | | | | | | | | | |
ING International Value Opportunities Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 898.00 | | | | 1.46 | % | | $ | 6.89 | |
| Class B | | | 1,000.00 | | | | 897.60 | | | | 2.21 | | | | 10.43 | |
| Class C | | | 1,000.00 | | | | 894.70 | | | | 2.21 | | | | 10.41 | |
| Class I | | | 1,000.00 | | | | 898.10 | | | | 1.20 | | | | 5.66 | |
| Hypothetical (5% return before expenses) |
| Class A | | $ | 1,000.00 | | | $ | 1,017.60 | | | | 1.46 | % | | $ | 7.32 | |
| Class B | | | 1,000.00 | | | | 1,013.87 | | | | 2.21 | | | | 11.07 | |
| Class C | | | 1,000.00 | | | | 1,013.87 | | | | 2.21 | | | | 11.07 | |
| Class I | | | 1,000.00 | | | | 1,018.90 | | | | 1.20 | | | | 6.02 | |
| | | | | | | | | | | | | | | | | |
ING Russia Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 986.90 | | | | 2.03 | % | | $ | 10.03 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,014.77 | | | | 2.03 | % | | $ | 10.17 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
35
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | Beginning
| | Ending
| | | | Expenses Paid
|
| | | Account
| | Account
| | Annualized
| | During the
|
| | | Value
| | Value
| | Expense
| | Period Ended
|
ING Emerging Markets Fixed Income Fund | | November 1, 2007 | | April 30, 2008 | | Ratio | | April 30, 2008* |
| |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 991.80 | | | | 1.08 | % | | $ | 5.35 | |
| Class B | | | 1,000.00 | | | | 988.20 | | | | 1.83 | | | | 9.05 | |
| Class C | | | 1,000.00 | | | | 989.40 | | | | 1.83 | | | | 9.05 | |
| Class I | | | 1,000.00 | | | | 993.30 | | | | 0.81 | | | | 4.01 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,019.49 | | | | 1.08 | % | | $ | 5.42 | |
| Class B | | | 1,000.00 | | | | 1,015.76 | | | | 1.83 | | | | 9.17 | |
| Class C | | | 1,000.00 | | | | 1,015.76 | | | | 1.83 | | | | 9.17 | |
| Class I | | | 1,000.00 | | | | 1,020.84 | | | | 0.81 | | | | 4.07 | |
| | | | | | | | | | | | | | | | | |
ING Global Bond Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,089.10 | | | | 0.91 | % | | $ | 4.73 | |
| Class B | | | 1,000.00 | | | | 1,084.30 | | | | 1.66 | | | | 8.60 | |
| Class C | | | 1,000.00 | | | | 1,084.60 | | | | 1.66 | | | | 8.60 | |
| Class I | | | 1,000.00 | | | | 1,093.90 | | | | 0.64 | | | | 3.33 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,020.34 | | | | 0.91 | % | | $ | 4.57 | |
| Class B | | | 1,000.00 | | | | 1,016.61 | | | | 1.66 | | | | 8.32 | |
| Class C | | | 1,000.00 | | | | 1,016.61 | | | | 1.66 | | | | 8.32 | |
| Class I | | | 1,000.00 | | | | 1,022.68 | | | | 0.64 | | | | 3.22 | |
| | | | | | | | | | | | | | | | | |
ING Diversified International Fund | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Actual Fund Return | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 891.80 | | | | 0.29 | % | | $ | 1.36 | |
| Class B | | | 1,000.00 | | | | 889.10 | | | | 1.04 | | | | 4.88 | |
| Class C | | | 1,000.00 | | | | 889.00 | | | | 1.04 | | | | 4.88 | |
| Class I | | | 1,000.00 | | | | 893.00 | | | | 0.04 | | | | 0.19 | |
| Class R | | | 1,000.00 | | | | 890.80 | | | | 0.54 | | | | 2.54 | |
Class W(a) | | | 1,000.00 | | | | 1,070.70 | | | | 0.04 | | | | 0.09 | |
| Hypothetical (5% return before expenses) | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,000.00 | | | $ | 1,023.42 | | | | 0.29 | % | | $ | 1.46 | |
| Class B | | | 1,000.00 | | | | 1,019.69 | | | | 1.04 | | | | 5.22 | |
| Class C | | | 1,000.00 | | | | 1,019.69 | | | | 1.04 | | | | 5.22 | |
| Class I | | | 1,000.00 | | | | 1,024.66 | | | | 0.04 | | | | 0.20 | |
| Class R | | | 1,000.00 | | | | 1,022.18 | | | | 0.54 | | | | 2.72 | |
| Class W | | | 1,000.00 | | | | 1,024.66 | | | | 0.04 | | | | 0.20 | |
| |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 182/366 to reflect the most recent fiscal half-year. |
| |
| (a) | Commencement of operations was February 12, 2008. Expenses paid reflect the 79 day period ended April 30, 2008. |
36
| | | | | | | | | | | | | | | | | |
| | | 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+* | | $ | 274,563,193 | | | $ | 155,157,476 | | | $ | 1,541,143,945 | | | $ | 109,599,902 | |
| Investments in affiliates** | | | — | | | | — | | | | 6,062,408 | | | | — | |
| Short-term investments at amortized cost | | | 26,118,895 | | | | — | | | | 345,858,275 | | | | 37,226,816 | |
| Cash | | | 7,712,520 | | | | — | | | | 6,555,148 | | | | 1,498,179 | |
| Foreign currencies at value*** | | | 3,478,163 | | | | 138,581 | | | | 160,756 | | | | 20,190 | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 51,797 | | | | 2,208,875 | | | | 13,523,495 | | | | 1,485,791 | |
| Fund shares sold | | | 900,856 | | | | 172,667 | | | | 25,744,588 | | | | 202,519 | |
| Dividends and interest | | | 1,366,295 | | | | 36,258 | | | | 3,895,484 | | | | 244,147 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 5,141 | | | | — | |
| Prepaid expenses | | | 45,346 | | | | 27,814 | | | | 96,450 | | | | 36,432 | |
| Reimbursement due from manager | | | — | | | | — | | | | — | | | | 161 | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 314,237,065 | | | | 157,741,671 | | | | 1,943,045,690 | | | | 150,314,137 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 338,621 | | | | 2,432,776 | | | | 18,669,531 | | | | — | |
| Payable for fund shares redeemed | | | 1,570,397 | | | | 236,614 | | | | 2,418,253 | | | | 298,864 | |
| Payable upon receipt of securities loaned | | | 26,118,895 | | | | — | | | | 287,051,807 | | | | 28,197,205 | |
| Payable to affiliates | | | 331,981 | | | | 147,739 | | | | 1,515,162 | | | | 127,835 | |
| Payable to custodian due to bank overdraft | | | — | | | | 101,105 | | | | — | | | | — | |
| Payable for trustee fees | | | 1,335 | | | | 24,841 | | | | 5,922 | | | | 20,759 | |
| Other accrued expenses and liabilities | | | 84,357 | | | | 45,251 | | | | 230,354 | | | | 96,977 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 28,445,586 | | | | 2,988,326 | | | | 309,891,029 | | | | 28,741,640 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 285,791,479 | | | $ | 154,753,345 | | | $ | 1,633,154,661 | | | $ | 121,572,497 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 300,127,446 | | | $ | 120,435,582 | | | $ | 1,656,858,695 | | | $ | 269,811,844 | |
| Undistributed net investment income (distributions in excess of net investment income) | | | 2,035,617 | | | | (279,560 | ) | | | (34,389,294 | ) | | | (67,675 | ) |
| Accumulated net realized gain (loss) on investments and foreign currency related transactions | | | 9,247,065 | | | | 14,070,830 | | | | (93,763,245 | ) | | | (149,454,285 | ) |
| Net unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (25,618,649 | ) | | | 20,526,493 | | | | 104,448,505 | | | | 1,282,613 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 285,791,479 | | | $ | 154,753,345 | | | $ | 1,633,154,661 | | | $ | 121,572,497 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | 24,920,677 | | | $ | — | | | $ | 278,334,069 | | | $ | 27,495,553 | |
| * Cost of investments in securities | | $ | 300,224,226 | | | $ | 134,633,766 | | | $ | 1,435,346,443 | | | $ | 108,313,808 | |
| ** Cost of investments in affiliates | | $ | — | | | $ | — | | | $ | 7,399,318 | | | $ | — | |
| *** Cost of foreign currencies | | $ | 3,445,816 | | | $ | 132,590 | | | $ | 148,198 | | | $ | 20,252 | |
See Accompanying Notes to Financial Statements
37
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (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 | | $ | 125,759,571 | | | $ | 154,750,641 | | | $ | 1,106,337,082 | | | $ | 60,183,881 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 9,184,731 | | | | 13,061,727 | | | | 53,112,294 | | | | 2,335,100 | |
| Net asset value and redemption price per share | | $ | 13.69 | | | $ | 11.85 | | | $ | 20.83 | | | $ | 25.77 | |
Maximum offering price per share (5.75%)(1) | | $ | 14.53 | | | $ | 12.57 | | | $ | 22.10 | | | $ | 27.34 | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 42,034,345 | | | | n/a | | | $ | 43,813,118 | | | $ | 15,299,451 | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | 3,080,790 | | | | n/a | | | | 2,474,653 | | | | 549,916 | |
Net asset value and redemption price per share(2) | | $ | 13.64 | | | | n/a | | | $ | 17.70 | | | $ | 27.82 | |
| Maximum offering price per share | | $ | 13.64 | | | | n/a | | | $ | 17.70 | | | $ | 27.82 | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 94,449,527 | | | | n/a | | | $ | 262,465,512 | | | $ | 34,717,393 | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | 6,937,681 | | | | n/a | | | | 14,095,568 | | | | 1,405,045 | |
Net asset value and redemption price per share(2) | | $ | 13.61 | | | | n/a | | | $ | 18.62 | | | $ | 24.71 | |
| Maximum offering price per share | | $ | 13.61 | | | | n/a | | | $ | 18.62 | | | $ | 24.71 | |
Class I: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 884 | | | $ | 1,182 | | | $ | 171,945,933 | | | $ | 9,174,773 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 65 | | | | 100 | | | | 8,250,760 | | | | 354,878 | |
| Net asset value and redemption price per share | | $ | 13.70 | | | $ | 11.84 | | | $ | 20.84 | | | $ | 25.85 | |
| Maximum offering price per share | | $ | 13.70 | | | $ | 11.84 | | | $ | 20.84 | | | $ | 25.85 | |
Class O: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 23,545,159 | | | | n/a | | | $ | 22,291,559 | | | | n/a | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | n/a | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | | n/a | |
| Shares outstanding | | | 1,721,329 | | | | n/a | | | | 1,070,455 | | | | n/a | |
| Net asset value and redemption price per share | | $ | 13.68 | | | | n/a | | | $ | 20.82 | | | | n/a | |
| Maximum offering price per share | | $ | 13.68 | | | | n/a | | | $ | 20.82 | | | | n/a | |
Class Q: | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | | n/a | | | $ | 2,196,999 | |
| Shares authorized | | | n/a | | | | n/a | | | | n/a | | | | unlimited | |
| Par value | | | n/a | | | | n/a | | | | n/a | | | $ | — | |
| Shares outstanding | | | n/a | | | | n/a | | | | n/a | | | | 72,574 | |
| Net asset value and redemption price per share | | | n/a | | | | n/a | | | | n/a | | | $ | 30.27 | |
| Maximum offering price per share | | | n/a | | | | n/a | | | | n/a | | | $ | 30.27 | |
Class W: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,993 | | | $ | 1,522 | | | $ | 26,301,457 | | | | n/a | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | n/a | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | | n/a | |
| Shares outstanding | | | 134 | | | | 103 | | | | 1,260,344 | | | | n/a | |
| Net asset value and redemption price per share | | $ | 14.85 | | | $ | 14.71 | | | $ | 20.87 | | | | n/a | |
| Maximum offering price per share | | $ | 14.85 | | | $ | 14.71 | | | $ | 20.87 | | | | n/a | |
| |
| (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
38
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Asia-Pacific
| | Disciplined
| | Emerging
| | European
|
| | | Real Estate
| | International SmallCap
| | Countries
| | Real Estate
|
| | | Fund | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 4,693,951 | | | $ | 359,317,049 | | | $ | 259,556,698 | | | $ | 5,808,371 | |
| Investments in affiliates** | | | 42,836 | | | | 509,390 | | | | — | | | | — | |
| Short-term investments at amortized cost | | | — | | | | — | | | | 49,486,831 | | | | — | |
| Cash | | | 213,128 | | | | 5,331,423 | | | | 540,793 | | | | 308,566 | |
| Foreign currencies at value*** | | | 1,360 | | | | — | | | | — | | | | 5,063 | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 36,851 | | | | 23,401,093 | | | | 536,772 | | | | — | |
| Fund shares sold | | | 62,950 | | | | 283,062 | | | | 13,219,594 | | | | 104,160 | |
| Dividends and interest | | | 13,545 | | | | 1,659,106 | | | | 1,552,518 | | | | 11,700 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 19,038 | | | | — | |
| Prepaid expenses | | | 52,714 | | | | 42,041 | | | | 51,833 | | | | 49,733 | |
| Reimbursement due from manager | | | 9,778 | | | | — | | | | — | | | | 7,999 | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 5,127,113 | | | | 390,543,164 | | | | 324,964,077 | | | | 6,295,592 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 120,192 | | | | 10,137,255 | | | | 1,255,976 | | | | 121,336 | |
| Payable for fund shares redeemed | | | — | | | | 479 | | | | 631,948 | | | | — | |
| Payable upon receipt of securities loaned | | | — | | | | — | | | | 41,426,178 | | | | — | |
| Securities sold short | | | — | | | | 171,124 | | | | — | | | | — | |
| Payable to affiliates | | | 5,290 | | | | 242,934 | | | | 385,966 | | | | 6,734 | |
| Payable to custodian due to foreign currency overdraft**** | | | — | | | | 4,926,457 | | | | 7,091 | | | | — | |
| Payable for trustee fees | | | 405 | | | | 3,249 | | | | 44,303 | | | | 460 | |
| Other accrued expenses and liabilities | | | 12,265 | | | | 191,590 | | | | 153,997 | | | | 7,478 | |
| Payable for borrowings against line of credit | | | — | | | | 8,880,000 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 138,152 | | | | 24,553,088 | | | | 43,905,459 | | | | 136,008 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 4,988,961 | | | $ | 365,990,076 | | | $ | 281,058,618 | | | $ | 6,159,584 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 6,035,329 | | | $ | 423,949,665 | | | $ | 250,945,580 | | | $ | 6,407,180 | |
| Undistributed net investment income (distributions in excess of net investment income) | | | (6,981 | ) | | | 3,290,480 | | | | 2,493,570 | | | | 20,180 | |
| Accumulated net realized gain (loss) on investments and foreign currency related transactions | | | (638,046 | ) | | | (37,472,611 | ) | | | 15,010,517 | | | | (328,657 | ) |
| Net unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (401,341 | ) | | | (23,777,458 | ) | | | 12,608,951 | | | | 60,881 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 4,988,961 | | | $ | 365,990,076 | | | $ | 281,058,618 | | | $ | 6,159,584 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | — | | | $ | — | | | $ | 40,938,398 | | | $ | — | |
| * Cost of investments in securities | | $ | 5,086,345 | | | $ | 383,068,272 | | | $ | 246,950,599 | | | $ | 5,747,361 | |
| ** Cost of investments in affiliates | | $ | 51,688 | | | $ | 580,696 | | | $ | — | | | $ | — | |
| *** Cost of foreign currencies | | $ | 942 | | | $ | — | | | $ | — | | | $ | 4,807 | |
| **** Cost of foreign currency overdraft | | $ | — | | | $ | 4,928,093 | | | $ | 7,101 | | | $ | — | |
| Proceeds from securities sold short | | $ | — | | | $ | 169,952 | | | $ | — | | | $ | — | |
See Accompanying Notes to Financial Statements
39
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
| | |
| | | Asia-Pacific
| | Disciplined
| | Emerging
| | European
| | |
| | | Real Estate
| | International SmallCap
| | Countries
| | Real Estate
| | |
| | | Fund | | Fund | | Fund | | Fund | | |
| |
Class A: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 4,837,379 | | | $ | 108,605 | | | $ | 172,255,850 | | | $ | 6,012,627 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 604,393 | | | | 10,897 | | | | 4,650,523 | | | | 638,752 | | | | | |
| Net asset value and redemption price per share | | $ | 8.00 | | | $ | 9.97 | | | $ | 37.04 | | | $ | 9.41 | | | | | |
Maximum offering price per share (5.75%)(1) | | $ | 8.49 | | | $ | 10.58 | | | $ | 39.30 | | | $ | 9.98 | | | | | |
Class B: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 25,439 | | | $ | 5,274 | | | $ | 13,623,444 | | | $ | 11,899 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 3,187 | | | | 531 | | | | 373,668 | | | | 1,266 | | | | | |
Net asset value and redemption price per share(2) | | $ | 7.98 | | | $ | 9.92 | | | $ | 36.46 | | | $ | 9.40 | | | | | |
| Maximum offering price per share | | $ | 7.98 | | | $ | 9.92 | | | $ | 36.46 | | | $ | 9.40 | | | | | |
Class C: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 125,336 | | | $ | 7,770 | | | $ | 46,298,091 | | | $ | 134,107 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 15,680 | | | | 783 | | | | 1,348,298 | | | | 14,290 | | | | | |
Net asset value and redemption price per share(2) | | $ | 7.99 | | | $ | 9.92 | | | $ | 34.34 | | | $ | 9.38 | | | | | |
| Maximum offering price per share | | $ | 7.99 | | | $ | 9.92 | | | $ | 34.34 | | | $ | 9.38 | | | | | |
Class I: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 807 | | | $ | 365,868,427 | | | $ | 31,030,383 | | | $ | 951 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 101 | | | | 36,598,105 | | | | 836,225 | | | | 101 | | | | | |
| Net asset value and redemption price per share | | $ | 7.99 | | | $ | 10.00 | | | $ | 37.11 | | | $ | 9.42 | | | | | |
| Maximum offering price per share | | $ | 7.99 | | | $ | 10.00 | | | $ | 37.11 | | | $ | 9.42 | | | | | |
Class Q: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 17,773,269 | | | | n/a | | | | | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | | | | n/a | | | | | |
| Par value | | | n/a | | | | n/a | | | $ | — | | | | n/a | | | | | |
| Shares outstanding | | | n/a | | | | n/a | | | | 463,334 | | | | n/a | | | | | |
| Net asset value and redemption price per share | | | n/a | | | | n/a | | | $ | 38.36 | | | | n/a | | | | | |
| Maximum offering price per share | | | n/a | | | | n/a | | | $ | 38.36 | | | | n/a | | | | | |
Class W: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 77,581 | | | | n/a | | | | | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | | | | n/a | | | | | |
| Par value | | | n/a | | | | n/a | | | $ | — | | | | n/a | | | | | |
| Shares outstanding | | | n/a | | | | n/a | | | | 1,999 | | | | n/a | | | | | |
| Net asset value and redemption price per share | | | n/a | | | | n/a | | | $ | 38.81 | | | | n/a | | | | | |
| Maximum offering price per share | | | n/a | | | | n/a | | | $ | 38.81 | | | | n/a | | | | | |
| |
| (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
40
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | | | ING
| | ING
| | ING
|
| | | ING
| | Greater
| | Index Plus
| | International
|
| | | Foreign
| | China
| | International Equity
| | Capital Appreciation
|
| | | Fund | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 646,488,747 | | | $ | 61,587,628 | | | $ | 267,892,469 | | | $ | 144,942,381 | |
| Short-term investments at amortized cost | | | 38,752,391 | | | | — | | | | — | | | | — | |
| Cash | | | 2,247,463 | | | | 841,020 | | | | 1,422,407 | | | | 1,404,156 | |
| Foreign currencies at value** | | | 37,339,879 | | | | 290,707 | | | | 5,801,516 | | | | 76,260 | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 3,767,722 | | | | — | | | | 11,393,846 | | | | 1,420,519 | |
| Fund shares sold | | | 5,923,395 | | | | 289,795 | | | | 237,992 | | | | 142,164 | |
| Dividends and interest | | | 1,295,992 | | | | 82,247 | | | | 1,299,173 | | | | 513,293 | |
| Unrealized appreciation on forward foreign currency contracts | | | 518,219 | | | | — | | | | — | | | | — | |
| Prepaid expenses | | | 67,628 | | | | 32,463 | | | | 46,165 | | | | 32,087 | |
| Reimbursement due from manager | | | — | | | | — | | | | 1,318 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 736,401,436 | | | | 63,123,860 | | | | 288,094,886 | | | | 148,530,860 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 9,153,779 | | | | — | | | | 3,516,752 | | | | 764,393 | |
| Payable for fund shares redeemed | | | 2,472,799 | | | | 275,314 | | | | 8,724,662 | | | | 1,062,756 | |
| Payable upon receipt of securities loaned | | | 36,733,478 | | | | — | | | | — | | | | — | |
| Unrealized depreciation on forward foreign currency contracts | | | 1,812,740 | | | | — | | | | — | | | | — | |
| Payable to affiliates | | | 861,588 | | | | 81,839 | | | | 172,252 | | | | 142,148 | |
| Payable for trustee fees | | | — | | | | 842 | | | | 1,341 | | | | 292 | |
| Other accrued expenses and liabilities | | | 316,260 | | | | 56,010 | | | | 17,849 | | | | 77,048 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 51,350,644 | | | | 414,005 | | | | 12,432,856 | | | | 2,046,637 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 685,050,792 | | | $ | 62,709,855 | | | $ | 275,662,030 | | | $ | 146,484,223 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 552,184,682 | | | $ | 47,817,049 | | | $ | 286,092,875 | | | $ | 135,656,872 | |
| Undistributed net investment income (distributions in excess of net investment income) | | | 5,226,340 | | | | (445,334 | ) | | | 1,805,161 | | | | 452,293 | |
| Accumulated net realized gain (loss) on investments, foreign currency related transactions and futures | | | (5,614,081 | ) | | | 5,956,146 | | | | (10,031,393 | ) | | | (1,499,442 | ) |
| Net unrealized appreciation or depreciation on investments, foreign currency related transactions and futures | | | 133,253,851 | | | | 9,381,994 | | | | (2,204,613 | ) | | | 11,874,500 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 685,050,792 | | | $ | 62,709,855 | | | $ | 275,662,030 | | | $ | 146,484,223 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | 35,644,703 | | | $ | — | | | $ | — | | | $ | — | |
| * Cost of investments in securities | | $ | 512,253,300 | | | $ | 52,205,377 | | | $ | 270,139,326 | | | $ | 133,066,292 | |
| ** Cost of foreign currencies | | $ | 37,027,568 | | | $ | 290,950 | | | $ | 5,755,468 | | | $ | 76,115 | |
See Accompanying Notes to Financial Statements
41
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | ING
| | ING
| | ING
| | |
| | | ING
| | Greater
| | Index Plus
| | International
| | |
| | | Foreign
| | China
| | International Equity
| | Capital Appreciation
| | |
| | | Fund | | Fund | | Fund | | Fund | | |
| |
Class A: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 329,490,364 | | | $ | 50,060,904 | | | $ | 19,355,183 | | | $ | 4,854,874 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 16,627,569 | | | | 2,810,416 | | | | 1,777,637 | | | | 381,569 | | | | | |
| Net asset value and redemption price per share | | $ | 19.82 | | | $ | 17.81 | | | $ | 10.89 | | | $ | 12.72 | | | | | |
Maximum offering price per share (5.75%)(1) | | $ | 21.03 | | | $ | 18.90 | | | $ | 11.55 | | | $ | 13.50 | | | | | |
Class B: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 40,607,079 | | | $ | 5,561,449 | | | $ | 3,919,855 | | | $ | 813,490 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 2,131,100 | | | | 316,371 | | | | 362,129 | | | | 64,890 | | | | | |
Net asset value and redemption price per share(2) | | $ | 19.05 | | | $ | 17.58 | | | $ | 10.82 | | | $ | 12.54 | | | | | |
| Maximum offering price per share | | $ | 19.05 | | | $ | 17.58 | | | $ | 10.82 | | | $ | 12.54 | | | | | |
Class C: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 202,481,908 | | | $ | 7,032,523 | | | $ | 2,649,416 | | | $ | 1,146,854 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 10,605,615 | | | | 399,691 | | | | 244,943 | | | | 91,230 | | | | | |
Net asset value and redemption price per share(2) | | $ | 19.09 | | | $ | 17.59 | | | $ | 10.82 | | | $ | 12.57 | | | | | |
| Maximum offering price per share | | $ | 19.09 | | | $ | 17.59 | | | $ | 10.82 | | | $ | 12.57 | | | | | |
Class I: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 111,681,440 | | | $ | 54,979 | | | $ | 169,088,750 | | | $ | 139,669,005 | | | | | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | | | | | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | |
| Shares outstanding | | | 5,532,819 | | | | 3,083 | | | | 15,443,774 | | | | 10,957,525 | | | | | |
| Net asset value and redemption price per share | | $ | 20.19 | | | $ | 17.83 | | | $ | 10.95 | | | $ | 12.75 | | | | | |
| Maximum offering price per share | | $ | 20.19 | | | $ | 17.83 | | | $ | 10.95 | | | $ | 12.75 | | | | | |
Class O: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 80,648,826 | | | | n/a | | | | | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | | | | n/a | | | | | |
| Par value | | | n/a | | | | n/a | | | $ | — | | | | n/a | | | | | |
| Shares outstanding | | | n/a | | | | n/a | | | | 7,449,730 | | | | n/a | | | | | |
| Net asset value and redemption price per share | | | n/a | | | | n/a | | | $ | 10.83 | | | | n/a | | | | | |
| Maximum offering price per share | | | n/a | | | | n/a | | | $ | 10.83 | | | | n/a | | | | | |
Class Q: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 707,049 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Shares authorized | | | unlimited | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Par value | | $ | — | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Shares outstanding | | | 35,516 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Net asset value and redemption price per share | | $ | 19.91 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Maximum offering price per share | | $ | 19.91 | | | | n/a | | | | n/a | | | | n/a | | | | | |
Class W: | | | | | | | | | | | | | | | | | | | | |
| Net assets | | $ | 82,952 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Shares authorized | | | unlimited | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Par value | | $ | — | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Shares outstanding | | | 3,854 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Net asset value and redemption price per share | | $ | 21.52 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| Maximum offering price per share | | $ | 21.52 | | | | n/a | | | | n/a | | | | n/a | | | | | |
| |
| (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
42
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | International
| | International
| | International
| | International SmallCap
|
| | | Equity Dividend
| | Growth Opportunities
| | Real Estate
| | Multi-Manager
|
| | | Fund | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 51,228,803 | | | $ | 121,367,620 | | | $ | 641,516,497 | | | $ | 854,870,054 | |
| Investments in affiliates** | | | — | | | | — | | | | 3,080,031 | | | | — | |
| Short-term investments in affiliates at amortized cost | | | — | | | | 1,925,000 | | | | — | | | | — | |
| Short-term investments at amortized cost | | | — | | | | 7,519,030 | | | | 21,652,068 | | | | 22,804,868 | |
| Cash | | | 2,676,890 | | | | 57,477 | | | | 2,404,070 | | | | 3,970,805 | |
| Foreign currencies at value*** | | | 17,300 | | | | 219,776 | | | | 102,707 | | | | 12,595,794 | |
| Receivables: | | | | | | | | | | | | | | | | |
| Investment securities sold | | | 4,982 | | | | — | | | | 2,419,653 | | | | 8,994,200 | |
| Fund shares sold | | | 68,276 | | | | 91,309 | | | | 3,640,121 | | | | 1,285,510 | |
| Dividends and interest | | | 334,068 | | | | 366,227 | | | | 2,322,370 | | | | 4,824,641 | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 20,894 | | | | 4,536 | |
| Prepaid expenses | | | 74,577 | | | | 29,535 | | | | 56,198 | | | | 77,210 | |
| Reimbursement due from manager | | | 3,344 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total assets | | | 54,408,240 | | | | 131,575,974 | | | | 677,214,609 | | | | 909,427,618 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 70,050 | | | | — | | | | 9,562,242 | | | | 3,116,324 | |
| Payable for fund shares redeemed | | | 436,256 | | | | 202,698 | | | | 5,128,202 | | | | 5,462,719 | |
| Payable upon receipt of securities loaned | | | — | | | | 6,906,030 | | | | — | | | | 20,033,988 | |
| Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | — | | | | 2,939 | |
| Payable to affiliates | | | 39,653 | | | | 151,291 | | | | 693,682 | | | | 975,154 | |
| Payable for trustee fees | | | 721 | | | | 23,173 | | | | — | | | | 1,858 | |
| Other accrued expenses and liabilities | | | 80,759 | | | | 48,369 | | | | 179,387 | | | | 367,709 | |
| Accrued foreign taxes on capital gains | | | — | | | | 98,920 | | | | — | | | | 30,110 | |
| | | | | | | | | | | | | | | | | |
| Total liabilities | | | 627,439 | | | | 7,430,481 | | | | 15,563,513 | | | | 29,990,801 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 53,780,801 | | | $ | 124,145,493 | | | $ | 661,651,096 | | | $ | 879,436,817 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 57,079,049 | | | $ | 113,188,249 | | | $ | 700,834,499 | | | $ | 884,508,589 | |
| Undistributed net investment income | | | 341,256 | | | | 162,166 | | | | 1,117,494 | | | | 4,759,943 | |
| Accumulated net realized gain (loss) on investments, foreign currency related transactions and written options | | | (412,937 | ) | | | 3,235,449 | | | | (52,126,039 | ) | | | (33,849,814 | ) |
| Net unrealized appreciation or depreciation on investments, foreign currency related transactions and written options | | | (3,226,567 | ) | | | 7,559,629 | | | | 11,825,142 | | | | 24,018,099 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 53,780,801 | | | $ | 124,145,493 | | | $ | 661,651,096 | | | $ | 879,436,817 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | — | | | $ | 6,802,640 | | | $ | — | | | $ | 18,839,445 | |
| * Cost of investments in securities | | $ | 54,454,451 | | | $ | 113,817,942 | | | $ | 629,083,193 | | | $ | 830,838,491 | |
| ** Cost of investments in affiliates | | $ | — | | | $ | — | | | $ | 3,712,980 | | | $ | — | |
| *** Cost of foreign currencies | | $ | 17,709 | | | $ | 220,786 | | | $ | 88,744 | | | $ | 12,599,520 | |
See Accompanying Notes to Financial Statements
43
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | International
| | International
| | International
| | International SmallCap
|
| | | Equity Dividend
| | Growth Opportunities
| | Real Estate
| | Multi-Manager
|
| | | Fund | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 3,660,871 | | | $ | 56,569,734 | | | $ | 222,496,224 | | | $ | 380,647,894 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 390,016 | | | | 4,720,415 | | | | 18,477,954 | | | | 8,184,535 | |
| Net asset value and redemption price per share | | $ | 9.39 | | | $ | 11.98 | | | $ | 12.04 | | | $ | 46.51 | |
Maximum offering price per share (5.75%)(1) | | $ | 9.96 | | | $ | 12.71 | | | $ | 12.77 | | | $ | 49.35 | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 298,605 | | | $ | 12,626,370 | | | $ | 8,502,084 | | | $ | 37,736,285 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 31,880 | | | | 1,111,681 | | | | 709,112 | | | | 783,062 | |
Net asset value and redemption price per share(2) | | $ | 9.37 | | | $ | 11.36 | | | $ | 11.99 | | | $ | 48.19 | |
| Maximum offering price per share | | $ | 9.37 | | | $ | 11.36 | | | $ | 11.99 | | | $ | 48.19 | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,553,992 | | | $ | 16,774,995 | | | $ | 96,014,089 | | | $ | 72,979,367 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 165,923 | | | | 1,474,591 | | | | 8,015,332 | | | | 1,680,318 | |
Net asset value and redemption price per share(2) | | $ | 9.37 | | | $ | 11.38 | | | $ | 11.98 | | | $ | 43.43 | |
| Maximum offering price per share | | $ | 9.37 | | | $ | 11.38 | | | $ | 11.98 | | | $ | 43.43 | |
Class I: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 48,266,336 | | | $ | 12,238,334 | | | $ | 334,524,873 | | | $ | 285,673,459 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 5,138,987 | | | | 1,025,297 | | | | 27,726,984 | | | | 6,123,931 | |
| Net asset value and redemption price per share | | $ | 9.39 | | | $ | 11.94 | | | $ | 12.06 | | | $ | 46.65 | |
| Maximum offering price per share | | $ | 9.39 | | | $ | 11.94 | | | $ | 12.06 | | | $ | 46.65 | |
Class Q: | | | | | | | | | | | | | | | | |
| Net assets | | | n/a | | | $ | 25,936,060 | | | | n/a | | | $ | 102,129,283 | |
| Shares authorized | | | n/a | | | | unlimited | | | | n/a | | | | unlimited | |
| Par value | | | n/a | | | $ | — | | | | n/a | | | $ | — | |
| Shares outstanding | | | n/a | | | | 2,186,227 | | | | n/a | | | | 2,018,900 | |
| Net asset value and redemption price per share | | | n/a | | | $ | 11.86 | | | | n/a | | | $ | 50.59 | |
| Maximum offering price per share | | | n/a | | | $ | 11.86 | | | | n/a | | | $ | 50.59 | |
Class W: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 997 | | | | n/a | | | $ | 113,826 | | | $ | 270,529 | |
| Shares authorized | | | unlimited | | | | n/a | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | | n/a | | | $ | — | | | $ | — | |
| Shares outstanding | | | 106 | | | | n/a | | | | 9,441 | | | | 4,941 | |
| Net asset value and redemption price per share | | $ | 9.41 | | | | n/a | | | $ | 12.06 | | | $ | 54.75 | |
| Maximum offering price per share | | $ | 9.41 | | | | n/a | | | $ | 12.06 | | | $ | 54.75 | |
| |
| (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
44
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | | | |
| | | International
| | International
| | International
| | ING
| | |
| | | Value
| | Value Choice
| | Value Opportunities
| | Russia
| | |
| | | Fund | | Fund | | Fund | | Fund | | |
| |
ASSETS: | | | | | | | | | | | | | | | | | | | | |
| Investments in securities at value+* | | $ | 4,116,620,251 | | | $ | 71,852,579 | | | $ | 9,048,844 | | | $ | 882,778,079 | | | | | |
| Short-term investments at amortized cost | | | 213,284,180 | | | | 3,573,846 | | | | — | | | | 176,807,367 | | | | | |
| Cash | | | 3,865,529 | | | | 1,531,431 | | | | 449,752 | | | | 14,286,287 | | | | | |
| Foreign currencies at value** | | | 677 | | | | — | | | | — | | | | — | | | | | |
| Receivables: | | | | | | | | | | | | | | | | | | | | |
| Investment securities sold | | | — | | | | 81,129 | | | | — | | | | — | | | | | |
| Fund shares sold | | | 8,738,135 | | | | 73,079 | | | | — | | | | 2,669,140 | | | | | |
| Dividends and interest | | | 37,069,467 | | | | 209,764 | | | | 72,259 | | | | 1,177,729 | | | | | |
| Prepaid expenses | | | 68,100 | | | | 29,324 | | | | 29,506 | | | | 21,993 | | | | | |
| Reimbursement due from manager | | | — | | | | — | | | | 8,744 | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | 4,379,646,339 | | | | 77,351,152 | | | | 9,609,105 | | | | 1,077,740,595 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | |
| Payable for investment securities purchased | | | — | | | | 582,299 | | | | — | | | | — | | | | | |
| Payable for fund shares redeemed | | | 13,397,009 | | | | 1,137,761 | | | | — | | | | 1,559,214 | | | | | |
| Payable upon receipt of securities loaned | | | 184,006,441 | | | | — | | | | — | | | | 176,807,367 | | | | | |
| Payable to affiliates | | | 4,766,641 | | | | 78,606 | | | | 8,761 | | | | 1,169,835 | | | | | |
| Payable to custodian due to foreign currency overdraft*** | | | — | | | | 1,766 | | | | 81,379 | | | | — | | | | | |
| Payable for trustee fees | | | 53,714 | | | | 2,358 | | | | 951 | | | | 26,213 | | | | | |
| Other accrued expenses and liabilities | | | 1,950,344 | | | | 46,070 | | | | 99,182 | | | | 939,845 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total liabilities | | | 204,174,149 | | | | 1,848,860 | | | | 190,273 | | | | 180,502,474 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 4,175,472,190 | | | $ | 75,502,292 | | | $ | 9,418,832 | | | $ | 897,238,121 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 3,440,036,499 | | | $ | 72,310,778 | | | $ | 10,108,633 | | | $ | 462,600,035 | | | | | |
| Undistributed net investment income (accumulated net investment loss) | | | 42,724,658 | | | | 313,988 | | | | 77,070 | | | | (5,572,612 | ) | | | | |
| Accumulated net realized gain (loss) on investments and foreign currency related transactions | | | 471,430,245 | | | | 3,951,811 | | | | (261,888 | ) | | | 137,449,196 | | | | | |
| Net unrealized appreciation or depreciation on investments and foreign currency related transactions | | | 221,280,788 | | | | (1,074,285 | ) | | | (504,983 | ) | | | 302,761,502 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
NET ASSETS | | $ | 4,175,472,190 | | | $ | 75,502,292 | | | $ | 9,418,832 | | | $ | 897,238,121 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| + Including securities loaned at value | | $ | 176,689,317 | | | $ | — | | | $ | — | | | $ | 171,977,516 | | | | | |
| * Cost of investments in securities | | $ | 3,895,269,712 | | | $ | 72,920,597 | | | $ | 9,554,786 | | | $ | 580,017,723 | | | | | |
| ** Cost of foreign currencies | | $ | 638 | | | $ | — | | | $ | — | | | $ | — | | | | | |
| *** Cost of foreign currency overdraft | | $ | — | | | $ | 1,720 | | | $ | 81,638 | | | $ | — | | | | | |
See Accompanying Notes to Financial Statements
45
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | |
| | | International
| | International
| | International
| | ING
|
| | | Value
| | Value Choice
| | Value Opportunities
| | Russia
|
| | | Fund | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,767,377,527 | | | $ | 15,265,134 | | | $ | 9,361,037 | | | $ | 897,238,121 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | 0.01 | | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 100,004,682 | | | | 1,276,602 | | | | 1,005,854 | | | | 13,599,698 | |
| Net asset value and redemption price per share | | $ | 17.67 | | | $ | 11.96 | | | $ | 9.31 | | | $ | 65.97 | |
Maximum offering price per share (5.75%)(1) | | $ | 18.75 | | | $ | 12.69 | | | $ | 9.88 | | | $ | 69.99 | |
Class B: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 193,236,057 | | | $ | 3,259,149 | | | $ | 19,080 | | | | n/a | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | n/a | |
| Par value | | $ | 0.01 | | | $ | — | | | $ | — | | | | n/a | |
| Shares outstanding | | | 11,146,875 | | | | 275,955 | | | | 2,039 | | | | n/a | |
Net asset value and redemption price per share(2) | | $ | 17.34 | | | $ | 11.81 | | | $ | 9.36 | | | | n/a | |
| Maximum offering price per share | | $ | 17.34 | | | $ | 11.81 | | | $ | 9.36 | | | | n/a | |
Class C: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 619,064,877 | | | $ | 4,178,699 | | | $ | 37,765 | | | | n/a | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | n/a | |
| Par value | | $ | 0.01 | | | $ | — | | | $ | — | | | | n/a | |
| Shares outstanding | | | 36,019,213 | | | | 352,895 | | | | 4,107 | | | | n/a | |
Net asset value and redemption price per share(2) | | $ | 17.19 | | | $ | 11.84 | | | $ | 9.20 | | | | n/a | |
| Maximum offering price per share | | $ | 17.19 | | | $ | 11.84 | | | $ | 9.20 | | | | n/a | |
Class I: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 1,573,084,226 | | | $ | 52,799,310 | | | $ | 950 | | | | n/a | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | | | | n/a | |
| Par value | | $ | 0.01 | | | $ | — | | | $ | — | | | | n/a | |
| Shares outstanding | | | 88,957,450 | | | | 4,419,835 | | | | 102 | | | | n/a | |
| Net asset value and redemption price per share | | $ | 17.68 | | | $ | 11.95 | | | $ | 9.31 | | | | n/a | |
| Maximum offering price per share | | $ | 17.68 | | | $ | 11.95 | | | $ | 9.31 | | | | n/a | |
Class Q: | | | | | | | | | | | | | | | | |
| Net assets | | $ | 22,709,503 | | | | n/a | | | | n/a | | | | n/a | |
| Shares authorized | | | unlimited | | | | n/a | | | | n/a | | | | n/a | |
| Par value | | $ | 0.01 | | | | n/a | | | | n/a | | | | n/a | |
| Shares outstanding | | | 1,281,673 | | | | n/a | | | | n/a | | | | n/a | |
| Net asset value and redemption price per share | | $ | 17.72 | | | | n/a | | | | n/a | | | | n/a | |
| Maximum offering price per share | | $ | 17.72 | | | | n/a | | | | n/a | | | | n/a | |
| |
| (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
46
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
|
| | | Emerging Markets
| | Global
| | Diversified
|
| | | Fixed Income
| | Bond
| | International
|
| | | Fund | | Fund | | Fund |
| |
ASSETS: | | | | | | | | | | | | |
| Investments in securities at value* | | $ | 274,400,594 | | | $ | 66,068,075 | | | $ | — | |
| Investments in affiliated underlying funds at value** | | | — | | | | — | | | | 566,022,871 | |
| Short-term investments in affiliates at amortized cost | | | — | | | | 37,125,000 | | | | — | |
| Short-term investments at amortized cost | | | — | | | | 6,456,315 | | | | — | |
| Cash | | | 8,362,062 | | | | — | | | | — | |
| Cash collateral for futures | | | 90,600 | | | | 436,928 | | | | — | |
| Foreign currencies at value*** | | | 5,505,713 | | | | 2,335,787 | | | | — | |
| Receivables: | | | | | | | | | | | | |
| Investment securities sold | | | 1,303,562 | | | | 2,987,145 | | | | — | |
| Fund shares sold | | | 337,701 | | | | 1,602,575 | | | | 2,228,531 | |
| Dividends and interest | | | 4,701,428 | | | | 501,203 | | | | — | |
| Futures variation margin | | | 29,719 | | | | 63,932 | | | | — | |
| Unrealized appreciation on forward foreign currency contracts | | | — | | | | 388,230 | | | | — | |
| Unrealized appreciation on swap agreements | | | — | | | | 105,824 | | | | — | |
| Prepaid expenses | | | 40,716 | | | | 48,541 | | | | 66,843 | |
| Reimbursement due from manager | | | — | | | | — | | | | 132,441 | |
| | | | | | | | | | | | | |
| Total assets | | | 294,772,095 | | | | 118,119,555 | | | | 568,450,686 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | |
| Payable for investment securities purchased | | | 3,481,311 | | | | 9,321,881 | | | | 396,750 | |
| Payable for fund shares redeemed | | | 21,282 | | | | 135,717 | | | | 1,312,314 | |
| Payable for futures variation margin | | | — | | | | 2,651 | | | | — | |
| Unrealized depreciation on forward foreign currency contracts | | | 217,625 | | | | 726,428 | | | | — | |
| Upfront payments received on swap agreements | | | — | | | | 2,827 | | | | — | |
| Unrealized depreciation on swap agreements | | | — | | | | 166,986 | | | | — | |
| Income distribution payable | | | — | | | | 276,596 | | | | — | |
| Payable to affiliates | | | 188,199 | | | | 77,576 | | | | 280,734 | |
| Payable to custodian due to bank overdraft | | | — | | | | 156,070 | | | | 35,396 | |
| Payable for trustee fees | | | 208 | | | | 539 | | | | 395 | |
| Other accrued expenses and liabilities | | | 39,915 | | | | 19,755 | | | | 35,584 | |
| | | | | | | | | | | | | |
| Total liabilities | | | 3,948,540 | | | | 10,887,026 | | | | 2,061,173 | |
| | | | | | | | | | | | | |
NET ASSETS | | $ | 290,823,555 | | | $ | 107,232,529 | | | $ | 566,389,513 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
NET ASSETS WERE COMPRISED OF: | | | | | | | | | | | | |
| Paid-in capital | | $ | 303,077,120 | | | $ | 105,433,584 | | | $ | 525,965,612 | |
| Undistributed net investment income (distributions in excess of net investment income) | | | 122,442 | | | | (2,584,756 | ) | | | (555,752 | ) |
| Accumulated net realized gain (loss) on investments, foreign currency related transactions, futures and swaps | | | (2,314,726 | ) | | | 3,193,777 | | | | 27,081,186 | |
| Net unrealized appreciation or depreciation on investments, foreign currency related transactions, futures and swaps | | | (10,061,281 | ) | | | 1,189,924 | | | | 13,898,467 | |
| | | | | | | | | | | | | |
NET ASSETS | | $ | 290,823,555 | | | $ | 107,232,529 | | | $ | 566,389,513 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| * Cost of investments in securities | | $ | 284,184,294 | | | $ | 64,053,456 | | | $ | — | |
| ** Cost of investments in affiliated underlying funds | | $ | — | | | $ | — | | | $ | 552,124,404 | |
| *** Cost of foreign currencies | | $ | 5,509,629 | | | $ | 2,316,164 | | | $ | — | |
See Accompanying Notes to Financial Statements
47
STATEMENTS OF ASSETS AND LIABILITIES as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
|
| | | Emerging Markets
| | Global
| | Diversified
|
| | | Fixed Income
| | Bond
| | International
|
| | | Fund | | Fund | | Fund |
| |
Class A: | | | | | | | | | | | | |
| Net assets | | $ | 4,658,060 | | | $ | 79,230,203 | | | $ | 365,179,796 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 466,224 | | | | 7,304,124 | | | | 28,027,929 | |
| Net asset value and redemption price per share | | $ | 9.99 | | | $ | 10.85 | | | $ | 13.03 | |
| Maximum offering price per share | | $ | 10.25 | (1) | | $ | 11.13 | (1) | | $ | 13.82 | (2) |
Class B: | | | | | | | | | | | | |
| Net assets | | $ | 333,987 | | | $ | 3,429,390 | | | $ | 39,652,273 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 33,517 | | | | 316,708 | | | | 3,063,071 | |
Net asset value and redemption price per share(3) | | $ | 9.96 | | | $ | 10.83 | | | $ | 12.95 | |
| Maximum offering price per share | | $ | 9.96 | | | $ | 10.83 | | | $ | 12.95 | |
Class C: | | | | | | | | | | | | |
| Net assets | | $ | 1,900,490 | | | $ | 23,254,279 | | | $ | 160,477,589 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 190,867 | | | | 2,139,100 | | | | 12,413,178 | |
Net asset value and redemption price per share(3) | | $ | 9.96 | | | $ | 10.87 | | | $ | 12.93 | |
| Maximum offering price per share | | $ | 9.96 | | | $ | 10.87 | | | $ | 12.93 | |
Class I: | | | | | | | | | | | | |
| Net assets | | $ | 283,931,018 | | | $ | 1,318,657 | | | $ | 27,724 | |
| Shares authorized | | | unlimited | | | | unlimited | | | | unlimited | |
| Par value | | $ | — | | | $ | — | | | $ | — | |
| Shares outstanding | | | 28,495,333 | | | | 121,878 | | | | 2,128 | |
| Net asset value and redemption price per share | | $ | 9.96 | | | $ | 10.82 | | | $ | 13.03 | |
| Maximum offering price per share | | $ | 9.96 | | | $ | 10.82 | | | $ | 13.03 | |
Class R: | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 345,050 | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | |
| Par value | | | n/a | | | | n/a | | | $ | — | |
| Shares outstanding | | | n/a | | | | n/a | | | | 26,728 | |
| Net asset value and redemption price per share | | | n/a | | | | n/a | | | $ | 12.91 | |
| Maximum offering price per share | | | n/a | | | | n/a | | | $ | 12.91 | |
Class W: | | | | | | | | | | | | |
| Net assets | | | n/a | | | | n/a | | | $ | 707,081 | |
| Shares authorized | | | n/a | | | | n/a | | | | unlimited | |
| Par value | | | n/a | | | | n/a | | | $ | — | |
| Shares outstanding | | | n/a | | | | n/a | | | | 54,286 | |
| Net asset value and redemption price per share | | | n/a | | | | n/a | | | $ | 13.03 | |
| Maximum offering price per share | | | n/a | | | | n/a | | | $ | 13.03 | |
| |
| (1) | Maximum offering price is 2.50% and is computed at 100/97.50 of net asset value. On purchases of $99,999 or more, the offering price is reduced. |
| (2) | 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. |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
See Accompanying Notes to Financial Statements
48
| | | | | | | | | | | | | | | | | |
| | | 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* | | $ | 7,138,347 | | | $ | 1,494,319 | | | $ | 20,873,014 | | | $ | 964,844 | |
Interest, net of foreign taxes withheld*(1) | | | 16,714 | | | | 13,148 | | | | 427,428 | | | | 61,493 | |
| Securities lending income | | | 62,934 | | | | — | | | | 269,064 | | | | 79,245 | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 7,217,995 | | | | 1,507,467 | | | | 21,569,506 | | | | 1,105,582 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 1,108,883 | | | | 605,401 | | | | 5,104,677 | | | | 565,369 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 179,090 | | | | 181,078 | | | | 1,228,692 | | | | 80,905 | |
| Class B | | | 235,999 | | | | — | | | | 224,767 | | | | 89,427 | |
| Class C | | | 519,127 | | | | — | | | | 1,247,593 | | | | 179,296 | |
| Class O | | | 28,156 | | | | — | | | | 26,828 | | | | — | |
| Class Q | | | — | | | | — | | | | — | | | | 2,944 | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 92,018 | | | | 79,409 | | | | 644,243 | | | | 60,855 | |
| Class B | | | 30,331 | | | | — | | | | 29,543 | | | | 19,031 | |
| Class C | | | 66,747 | | | | — | | | | 163,786 | | | | 38,174 | |
| Class I | | | — | | | | — | | | | 4,819 | | | | 736 | |
| Class O | | | 13,651 | | | | — | | | | 14,102 | | | | — | |
| Class Q | | | — | | | | — | | | | — | | | | 224 | |
| Class W | | | — | | | | — | | | | 91 | | | | — | |
| Administrative service fees | | | 158,409 | | | | 72,431 | | | | 698,149 | | | | 60,485 | |
| Shareholder reporting expense | | | 173,494 | | | | 39,434 | | | | 738,588 | | | | 23,441 | |
| Registration fees | | | 49,206 | | | | 25,384 | | | | 94,539 | | | | 30,701 | |
| Professional fees | | | 18,691 | | | | 11,046 | | | | 47,772 | | | | 7,652 | |
| Custody and accounting expense | | | 57,130 | | | | 13,104 | | | | 158,528 | | | | 15,652 | |
| Trustee fees | | | 4,600 | | | | 1,456 | | | | 15,834 | | | | 6,864 | |
| Miscellaneous expense | | | 5,262 | | | | 3,395 | | | | 11,519 | | | | 4,273 | |
| Interest expense | | | — | | | | 5,646 | | | | 1,014 | | | | 358 | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 2,740,794 | | | | 1,037,784 | | | | 10,455,084 | | | | 1,186,387 | |
| Net waived and reimbursed fees | | | — | | | | (141 | ) | | | — | | | | (48,098 | ) |
| Brokerage commission recapture | | | — | | | | — | | | | (447 | ) | | | (9,051 | ) |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 2,740,794 | | | | 1,037,643 | | | | 10,454,637 | | | | 1,129,238 | |
| | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 4,477,201 | | | | 469,824 | | | | 11,114,869 | | | | (23,656 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | 11,449,294 | | | | 15,118,336 | | | | (56,549,747 | ) | | | 6,464,621 | |
| Foreign currency related transactions | | | (110,155 | ) | | | 5,736 | | | | (14,851 | ) | | | (17,972 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | 11,339,139 | | | | 15,124,072 | | | | (56,564,598 | ) | | | 6,446,649 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | (56,997,287 | ) | | | (10,972,963 | ) | | | (130,213,316 | ) | | | (18,129,934 | ) |
| Foreign currency related transactions | | | 22,774 | | | | (2,848 | ) | | | (34,834 | ) | | | (1,646 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (56,974,513 | ) | | | (10,975,811 | ) | | | (130,248,150 | ) | | | (18,131,580 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | | (45,635,374 | ) | | | 4,148,261 | | | | (186,812,748 | ) | | | (11,684,931 | ) |
| | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting from operations | | $ | (41,158,173 | ) | | $ | 4,618,085 | | | $ | (175,697,879 | ) | | $ | (11,708,587 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 319,234 | | | $ | 32,558 | | | $ | 1,495,563 | | | $ | 56,801 | |
(1) Affiliated interest income | | $ | — | | | $ | 11,211 | | | $ | — | | | $ | — | |
See Accompanying Notes to Financial Statements
49
STATEMENTS OF OPERATIONS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | Asia-Pacific
| | Disciplined
| | Emerging
| | European
|
| | | Real Estate
| | International SmallCap
| | Countries
| | Real Estate
|
| | | Fund | | Fund | | Fund | | Fund |
| | | November 1,
| | Six Months
| | Six Months
| | November 1,
|
| | | 2007(1) to
| | Ended
| | Ended
| | 2007(1) to
|
| | | April 30,
| | April 30,
| | April 30,
| | April 30,
|
| | | 2008 | | 2008 | | 2008 | | 2008 |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
| Dividends, net of foreign taxes withheld* | | $ | 62,301 | | | $ | 5,391,446 | | | $ | 4,977,685 | | | $ | 79,767 | |
| Interest, net of foreign taxes withheld* | | | 1,472 | | | | 145,838 | | | | 510,163 | | | | 3,107 | |
| Securities lending income | | | — | | | | — | | | | 99,391 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 63,773 | | | | 5,537,284 | | | | 5,587,239 | | | | 82,874 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 22,489 | | | | 1,278,264 | | | | 1,750,537 | | | | 25,379 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 5,495 | | | | 114 | | | | 303,873 | | | | 6,274 | |
| Class B | | | 89 | | | | 21 | | | | 70,311 | | | | 12 | |
| Class C | | | 415 | | | | 137 | | | | 233,955 | | | | 268 | |
| Class Q | | | — | | | | — | | | | 22,490 | | | | — | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 4,848 | | | | 1 | | | | 99,639 | | | | 287 | |
| Class B | | | 2 | | | | — | | | | 8,069 | | | | 1 | |
| Class C | | | 10 | | | | — | | | | 26,850 | | | | 66 | |
| Class I | | | 1 | | | | 3,018 | | | | 5,101 | | | | — | |
| Class Q | | | — | | | | — | | | | 3,988 | | | | — | |
| Administrative service fees | | | 2,249 | | | | 213,041 | | | | 140,041 | | | | 2,538 | |
| Shareholder reporting expense | | | 1,124 | | | | 14,805 | | | | 69,968 | | | | 1,270 | |
| Registration fees | | | 2,882 | | | | 22,287 | | | | 45,481 | | | | 2,382 | |
| Professional fees | | | 7,274 | | | | 27,502 | | | | 13,104 | | | | 11,138 | |
| Custody and accounting expense | | | 5,212 | | | | 159,694 | | | | 154,173 | | | | 301 | |
| Trustee fees | | | 450 | | | | 6,319 | | | | 4,735 | | | | 508 | |
| Offering expense | | | 42,788 | | | | — | | | | — | | | | 42,518 | |
| Miscellaneous expense | | | 456 | | | | 5,676 | | | | 5,593 | | | | 1,540 | |
| Interest expense | | | — | | | | 11,506 | | | | 1,247 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 95,784 | | | | 1,742,385 | | | | 2,959,155 | | | | 94,482 | |
| Net waived and reimbursed fees | | | (56,041 | ) | | | — | | | | (86,820 | ) | | | (49,810 | ) |
| Brokerage commission recapture | | | — | | | | — | | | | (39,685 | ) | | | — | |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 39,743 | | | | 1,742,385 | | | | 2,832,650 | | | | 44,672 | |
| | | | | | | | | | | | | | | | | |
| Net investment income | | | 24,030 | | | | 3,794,899 | | | | 2,754,589 | | | | 38,202 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | (619,798 | ) | | | (31,810,357 | ) | | | 18,514,855 | | | | (307,257 | ) |
| Foreign currency related transactions | | | (18,248 | ) | | | 135,748 | | | | (166,787 | ) | | | (21,400 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | (638,046 | ) | | | (31,674,609 | ) | | | 18,348,068 | | | | (328,657 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | (401,246 | ) | | | (46,688,846 | ) | | | (45,055,020 | ) | | | 61,010 | |
| Foreign currency related transactions | | | (95 | ) | | | (29,833 | ) | | | 1,753 | | | | (129 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (401,341 | ) | | | (46,718,679 | ) | | | (45,053,267 | ) | | | 60,881 | |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized loss on investments and foreign currency related transactions | | | (1,039,387 | ) | | | (78,393,288 | ) | | | (26,705,199 | ) | | | (267,776 | ) |
| | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from operations | | $ | (1,015,357 | ) | | $ | (74,598,389 | ) | | $ | (23,950,610 | ) | | $ | (229,574 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 9,355 | | | $ | 408,792 | | | $ | 370,300 | | | $ | 15,658 | |
| |
| (1) | Commencement of operations |
See Accompanying Notes to Financial Statements
50
STATEMENTS OF OPERATIONS for the six months ended April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | | | ING
| | ING
| | ING
|
| | | ING
| | Greater
| | Index Plus
| | International
|
| | | Foreign
| | China
| | International Equity
| | Capital Appreciation
|
| | | Fund | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
| Dividends, net of foreign taxes withheld* | | $ | 4,523,843 | | | $ | 267,379 | | | $ | 3,118,313 | | | $ | 1,269,309 | |
Interest, net of foreign taxes withheld*(1) | | | 354,075 | | | | 67 | | | | 182,970 | | | | 16,025 | |
| Securities lending income | | | 98,880 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 4,976,798 | | | | 267,446 | | | | 3,301,283 | | | | 1,285,334 | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 3,297,222 | | | | 399,212 | | | | 602,413 | | | | 592,272 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 403,682 | | | | 69,182 | | | | 22,613 | | | | 5,697 | |
| Class B | | | 216,656 | | | | 28,000 | | | | 16,956 | | | | 4,353 | |
| Class C | | | 1,028,263 | | | | 42,179 | | | | 11,972 | | | | 5,004 | |
| Class O | | | — | | | | — | | | | 77,924 | | | | — | |
| Class Q | | | 935 | | | | — | | | | — | | | | — | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 135,372 | | | | 37,358 | | | | 13,294 | | | | 2,296 | |
| Class B | | | 18,156 | | | | 3,780 | | | | 2,497 | | | | 441 | |
| Class C | | | 86,117 | | | | 5,694 | | | | 1,776 | | | | 502 | |
| Class I | | | 3,560 | | | | 31 | | | | 64,125 | | | | 6,802 | |
| Class O | | | — | | | | — | | | | 45,465 | | | | — | |
| Class Q | | | 27 | | | | — | | | | — | | | | — | |
| Administrative service fees | | | 338,727 | | | | 34,714 | | | | 109,531 | | | | 69,678 | |
| Shareholder reporting expense | | | 164,093 | | | | 11,578 | | | | 42,516 | | | | 5,298 | |
| Registration fees | | | 54,331 | | | | 31,888 | | | | 37,730 | | | | 29,716 | |
| Professional fees | | | 22,315 | | | | 6,370 | | | | 30,010 | | | | 6,290 | |
| Custody and accounting expense | | | 287,701 | | | | 28,386 | | | | 39,676 | | | | 32,686 | |
| Trustee fees | | | 8,202 | | | | 808 | | | | 3,423 | | | | 910 | |
| Miscellaneous expense | | | 11,674 | | | | 3,745 | | | | 269,393 | | | | 2,736 | |
| Interest expense | | | 565 | | | | — | | | | 50,911 | | | | 957 | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 6,077,598 | | | | 702,925 | | | | 1,442,225 | | | | 765,638 | |
| Net recouped (waived and reimbursed) fees | | | (16,587 | ) | | | — | | | | 36,756 | | | | 61,297 | |
| Brokerage commission recapture | | | (5,073 | ) | | | — | | | | — | | | | (2,514 | ) |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 6,055,938 | | | | 702,925 | | | | 1,478,981 | | | | 824,421 | |
| | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | (1,079,140 | ) | | | (435,479 | ) | | | 1,822,302 | | | | 460,913 | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS AND FUTURES: | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | 1,551,222 | | | | 6,130,916 | | | | (11,881,643 | ) | | | 273,787 | |
| Foreign currency related transactions | | | (3,750,034 | ) | | | 11,798 | | | | 191,699 | | | | (49,273 | ) |
| Futures | | | — | | | | — | | | | 2,338,608 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investments, foreign currency related transactions and futures | | | (2,198,812 | ) | | | 6,142,714 | | | | (9,351,336 | ) | | | 224,514 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | (78,651,097 | ) | | | (23,779,331 | ) | | | (19,017,724 | ) | | | (15,893,972 | ) |
| Foreign currency related transactions | | | 6,022,603 | | | | (722 | ) | | | 4,781 | | | | (807 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (72,628,494 | ) | | | (23,780,053 | ) | | | (19,012,943 | ) | | | (15,894,779 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized loss on investments, foreign currency related transactions and futures | | | (74,827,306 | ) | | | (17,637,339 | ) | | | (28,364,279 | ) | | | (15,670,265 | ) |
| | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from operations | | $ | (75,906,446 | ) | | $ | (18,072,818 | ) | | $ | (26,541,977 | ) | | $ | (15,209,352 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 449,104 | | | $ | — | | | $ | 357,827 | | | $ | 121,061 | |
(1) Affiliated interest income | | $ | — | | | $ | — | | | $ | 2 | | | $ | — | |
See Accompanying Notes to Financial Statements
51
STATEMENTS OF OPERATIONS for the six months ended April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | ING
|
| | | International
| | International
| | International
| | International SmallCap
|
| | | Equity Dividend
| | Growth Opportunities
| | Real Estate
| | Multi-Manager
|
| | | Fund | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
Dividends, net of foreign taxes withheld*(1) | | $ | 1,267,993 | | | $ | 1,270,282 | | | $ | 8,644,097 | | | $ | 11,388,312 | |
Interest, net of foreign taxes withheld*(2) | | | 333 | | | | 56,079 | | | | 300,620 | | | | 240,756 | |
| Securities lending income | | | — | | | | 30,658 | | | | — | | | | 243,367 | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 1,268,326 | | | | 1,357,019 | | | | 8,944,717 | | | | 11,872,435 | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 205,033 | | | | 629,203 | | | | 2,690,707 | | | | 4,373,898 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 4,641 | | | | 71,621 | | | | 282,777 | | | | 694,121 | |
| Class B | | | 1,220 | | | | 71,201 | | | | 45,859 | | | | 229,691 | |
| Class C | | | 7,613 | | | | 85,136 | | | | 501,179 | | | | 394,165 | |
| Class Q | | | — | | | | 33,919 | | | | — | | | | 127,829 | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 2,625 | | | | 36,891 | | | | 95,306 | | | | 198,198 | |
| Class B | | | 182 | | | | 9,208 | | | | 3,859 | | | | 22,954 | |
| Class C | | | 1,061 | | | | 10,960 | | | | 42,240 | | | | 39,392 | |
| Class I | | | 34,817 | | | | 454 | | | | 43,202 | | | | 82,300 | |
| Class Q | | | — | | | | 1,205 | | | | — | | | | 28,624 | |
| Class W | | | — | | | | — | | | | 1 | | | | 62 | |
| Administrative service fees | | | 27,338 | | | | 62,919 | | | | 289,715 | | | | 458,868 | |
| Shareholder reporting expense | | | 1,858 | | | | 44,318 | | | | 99,295 | | | | 155,285 | |
| Registration fees | | | 21,409 | | | | 30,643 | | | | 44,387 | | | | 66,117 | |
| Professional fees | | | 4,058 | | | | 12,674 | | | | 19,333 | | | | 41,925 | |
| Custody and accounting expense | | | 11,427 | | | | 37,698 | | | | 108,237 | | | | 351,205 | |
| Trustee fees | | | 469 | | | | 1,619 | | | | 3,546 | | | | 11,055 | |
| Offering expense | | | 49,726 | | | | — | | | | — | | | | — | |
| Miscellaneous expense | | | 1,204 | | | | 10,723 | | | | 4,237 | | | | 21,638 | |
| Interest expense | | | — | | | | 4,691 | | | | — | | | | 89,456 | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 374,681 | | | | 1,155,083 | | | | 4,273,880 | | | | 7,386,783 | |
| Net recouped (waived and reimbursed) fees | | | (47,991 | ) | | | (30,867 | ) | | | 118,700 | | | | — | |
| Brokerage commission recapture | | | — | | | | — | | | | — | | | | (10,373 | ) |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 326,690 | | | | 1,124,216 | | | | 4,392,580 | | | | 7,376,410 | |
| | | | | | | | | | | | | | | | | |
| Net investment income | | | 941,636 | | | | 232,803 | | | | 4,552,137 | | | | 4,496,025 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS AND WRITTEN OPTIONS: | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments (net of Indian capital gains tax withheld)** | | | (132,028 | ) | | | 5,038,811 | | | | (24,610,159 | ) | | | (32,588,625 | ) |
| Foreign currency related transactions | | | (60,716 | ) | | | (19,414 | ) | | | (305,880 | ) | | | 22,167 | |
| Written options | | | — | | | | — | | | | 339,706 | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investments, foreign currency related transactions and written options | | | (192,744 | ) | | | 5,019,397 | | | | (24,576,333 | ) | | | (32,566,458 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments (net of Indian capital gains tax accrued)*** | | | (6,655,816 | ) | | | (17,768,086 | ) | | | (62,656,989 | ) | | | (187,117,435 | ) |
| Foreign currency related transactions | | | (390 | ) | | | (13,834 | ) | | | 10,953 | | | | 177,690 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (6,656,206 | ) | | | (17,781,920 | ) | | | (62,646,036 | ) | | | (186,939,745 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized loss on investments, foreign currency related transactions and written options | | | (6,848,950 | ) | | | (12,762,523 | ) | | | (87,222,369 | ) | | | (219,506,203 | ) |
| | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from operations | | $ | (5,907,314 | ) | | $ | (12,529,720 | ) | | $ | (82,670,232 | ) | | $ | (215,010,178 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 122,580 | | | $ | 132,603 | | | $ | 1,126,368 | | | $ | 1,088,219 | |
| ** Foreign tax on sale of Indian investments | | $ | — | | | $ | 40,004 | | | $ | — | | | $ | 23,279 | |
| *** Foreign tax accrued on Indian investments | | $ | — | | | $ | 98,920 | | | $ | — | | | $ | 30,110 | |
(1) Dividends from affiliates | | $ | — | | | $ | — | | | $ | 133,730 | | | $ | — | |
(2) Affiliated interest income | | $ | — | | | $ | 55,569 | | | $ | — | | | $ | — | |
See Accompanying Notes to Financial Statements
52
STATEMENTS OF OPERATIONS for the six months ended April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
| | |
| | | International
| | International
| | International
| | ING
|
| | | Value
| | Value Choice
| | Value Opportunities
| | Russia
|
| | | Fund | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | | | | | |
| Dividends, net of foreign taxes withheld* | | $ | 76,914,485 | | | $ | 834,580 | | | $ | 148,255 | | | $ | 3,123,697 | |
| Interest | | | 1,239,354 | | | | 53,283 | | | | 577 | | | | — | |
| Securities lending income | | | 276,086 | | | | — | | | | — | | | | 360,130 | |
| | | | | | | | | | | | | | | | | |
| Total investment income | | | 78,429,925 | | | | 887,863 | | | | 148,832 | | | | 3,483,827 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | | | | | |
| Investment management fees | | | 22,748,054 | | | | 388,840 | | | | 37,276 | | | | 5,582,621 | |
| Distribution and service fees: | | | | | | | | | | | | | | | | |
| Class A | | | 2,783,853 | | | | 19,537 | | | | 11,591 | | | | 1,116,524 | |
| Class B | | | 1,152,323 | | | | 16,881 | | | | 62 | | | | — | |
| Class C | | | 3,263,443 | | | | 21,455 | | | | 165 | | | | — | |
| Class Q | | | 28,461 | | | | — | | | | — | | | | — | |
| Transfer agent fees: | | | | | | | | | | | | | | | | |
| Class A | | | 882,174 | | | | 6,915 | | | | 4,173 | | | | 391,258 | |
| Class B | | | 110,567 | | | | 1,478 | | | | 5 | | | | — | |
| Class C | | | 310,438 | | | | 1,879 | | | | 15 | | | | — | |
| Class I | | | 455,884 | | | | 1,088 | | | | — | | | | — | |
| Class Q | | | 5,653 | | | | — | | | | — | | | | — | |
| Administrative service fees | | | 2,274,772 | | | | 38,883 | | | | 4,660 | | | | 446,607 | |
| Shareholder reporting expense | | | 659,223 | | | | 9,714 | | | | 1,456 | | | | 284,609 | |
| Registration fees | | | 55,179 | | | | 23,883 | | | | 47,600 | | | | 32,419 | |
| Professional fees | | | 157,210 | | | | 6,678 | | | | 1,422 | | | | 30,004 | |
| Custody and accounting expense | | | 802,773 | | | | 17,084 | | | | 8,912 | | | | 1,134,860 | |
| Trustee fees | | | 76,792 | | | | 1,386 | | | | 546 | | | | 26,292 | |
| Offering expense | | | — | | | | — | | | | 27,713 | | | | — | |
| Miscellaneous expense | | | 477,700 | | | | 3,747 | | | | 4,461 | | | | 11,245 | |
| Interest expense | | | 28,569 | | | | 221 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total expenses | | | 36,273,068 | | | | 559,669 | | | | 150,057 | | | | 9,056,439 | |
| Net recouped (waived and reimbursed) fees | | | (508,888 | ) | | | 19,366 | | | | (81,653 | ) | | | — | |
| Brokerage commission recapture | | | (82,743 | ) | | | (1,621 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Net expenses | | | 35,681,437 | | | | 577,414 | | | | 68,404 | | | | 9,056,439 | |
| | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 42,748,488 | | | | 310,449 | | | | 80,428 | | | | (5,572,612 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
| Investments | | | 471,691,166 | | | | 4,584,070 | | | | (248,647 | ) | | | 138,122,218 | |
| Foreign currency related transactions | | | (239,218 | ) | | | (49,639 | ) | | | (8,154 | ) | | | (70,990 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | 471,451,948 | | | | 4,534,431 | | | | (256,801 | ) | | | 138,051,228 | |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | | | | | |
| Investments | | | (996,421,347 | ) | | | (9,557,059 | ) | | | (919,724 | ) | | | (146,413,257 | ) |
| Foreign currency related transactions | | | (274,694 | ) | | | (5,773 | ) | | | 1,427 | | | | (95 | ) |
| | | | | | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (996,696,041 | ) | | | (9,562,832 | ) | | | (918,297 | ) | | | (146,413,352 | ) |
| | | | | | | | | | | | | | | | | |
| Net realized and unrealized loss on investments and foreign currency related transactions | | | (525,244,093 | ) | | | (5,028,401 | ) | | | (1,175,098 | ) | | | (8,362,124 | ) |
| | | | | | | | | | | | | | | | | |
Decrease in net assets resulting from operations | | $ | (482,495,605 | ) | | $ | (4,717,952 | ) | | $ | (1,094,670 | ) | | $ | (13,934,736 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | 7,481,956 | | | $ | 93,328 | | | $ | 15,872 | | | $ | 536,596 | |
See Accompanying Notes to Financial Statements
53
STATEMENTS OF OPERATIONS for the six months ended April 30, 2008 (Unaudited)
| | | | | | | | | | | | | |
| | | ING
| | ING
| | ING
|
| | | Emerging Markets
| | Global
| | Diversified
|
| | | Fixed Income
| | Bond
| | International
|
| | | Fund | | Fund | | Fund |
| |
INVESTMENT INCOME: | | | | | | | | | | | | |
| Dividends | | $ | 98,781 | | | $ | — | | | $ | — | |
| Dividends from affiliated underlying funds | | | — | | | | — | | | | 7,019,581 | |
Interest, net of foreign taxes withheld*(1) | | | 11,727,727 | | | | 1,145,475 | | | | — | |
| | | | | | | | | | | | | |
| Total investment income | | | 11,826,508 | | | | 1,145,475 | | | | 7,019,581 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
EXPENSES: | | | | | | | | | | | | |
| Investment management fees | | | 1,010,170 | | | | 125,315 | | | | — | |
| Distribution and service fees: | | | | | | | | | | | | |
| Class A | | | 9,895 | | | | 62,727 | | | | 441,153 | |
| Class B | | | 1,797 | | | | 7,597 | | | | 199,083 | |
| Class C | | | 8,255 | | | | 54,532 | | | | 781,935 | |
| Class R | | | — | | | | — | | | | 928 | |
| Transfer agent fees: | | | | | | | | | | | | |
| Class A | | | 935 | | | | 5,630 | | | | 120,953 | |
| Class B | | | 43 | | | | 182 | | | | 13,646 | |
| Class C | | | 199 | | | | 1,306 | | | | 53,597 | |
| Class I | | | 7,299 | | | | 2 | | | | 9 | |
| Class R | | | — | | | | — | | | | 127 | |
| Class W | | | — | | | | — | | | | 44 | |
| Administrative service fees | | | 157,999 | | | | 31,328 | | | | 274,823 | |
| Shareholder reporting expense | | | 10,501 | | | | 3,123 | | | | 63,452 | |
| Registration fees | | | 33,426 | | | | 29,003 | | | | 57,111 | |
| Professional fees | | | 14,183 | | | | 4,250 | | | | 19,158 | |
| Custody and accounting expense | | | 46,678 | | | | 13,370 | | | | 2,920 | |
| Trustee fees | | | 3,411 | | | | 546 | | | | 4,810 | |
| Miscellaneous expense | | | 2,728 | | | | 6,835 | | | | 4,107 | |
| Interest expense | | | 315 | | | | 838 | | | | — | |
| | | | | | | | | | | | | |
| Total expenses | | | 1,307,834 | | | | 346,584 | | | | 2,037,856 | |
| Net waived and reimbursed fees | | | — | | | | (12,088 | ) | | | (505,544 | ) |
| | | | | | | | | | | | | |
| Net expenses | | | 1,307,834 | | | | 334,496 | | | | 1,532,312 | |
| | | | | | | | | | | | | |
| Net investment income | | | 10,518,674 | | | | 810,979 | | | | 5,487,269 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, INVESTMENTS IN AFFILIATED UNDERLYING FUNDS, FOREIGN CURRENCY RELATED TRANSACTIONS, FUTURES AND SWAPS: | | | | | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | | | | | |
| Investments | | | (1,890,880 | ) | | | 698,468 | | | | — | |
| Distributions of realized gains from affiliated underlying funds | | | — | | | | — | | | | 40,611,836 | |
| Investments in affiliated underlying funds | | | — | | | | — | | | | (11,930,628 | ) |
| Foreign currency related transactions | | | 140,088 | | | | 2,256,886 | | | | — | |
| Futures and swaps | | | 101,914 | | | | 214,339 | | | | — | |
| | | | | | | | | | | | | |
| Net realized gain (loss) on investments, investments in affiliated underlying funds, foreign currency related transactions, futures and swaps | | | (1,648,878 | ) | | | 3,169,693 | | | | 28,681,208 | |
| | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on: | | | | | | | | | | | | |
| Investments | | | (10,451,592 | ) | | | 764,783 | | | | — | |
| Investments in affiliated underlying funds | | | — | | | | — | | | | (101,343,801 | ) |
| Foreign currency related transactions | | | (224,371 | ) | | | (336,403 | ) | | | — | |
| Futures and swaps | | | (59,246 | ) | | | (407,179 | ) | | | — | |
| | | | | | | | | | | | | |
| Net change in unrealized appreciation or depreciation on investments, foreign currency related transactions, futures and swaps | | | (10,735,209 | ) | | | 21,201 | | | | (101,343,801 | ) |
| | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) on investments, investments in affiliated underlying funds foreign currency related transactions, futures and swaps | | | (12,384,087 | ) | | | 3,190,894 | | | | (72,662,593 | ) |
| | | | | | | | | | | | | |
Increase (decrease) in net assets resulting from operations | | $ | (1,865,413 | ) | | $ | 4,001,873 | | | $ | (67,175,324 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| * Foreign taxes withheld | | $ | — | | | $ | 880 | | | $ | — | |
(1) Affiliated interest income | | $ | — | | | $ | 196,656 | | | $ | — | |
See Accompanying Notes to Financial Statements
54
| | | | | | | | | | | | | | | | | |
| | | ING Global Equity Dividend Fund | | ING Global Natural Resources Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 4,477,201 | | | $ | 9,943,310 | | | $ | 469,824 | | | $ | (367,759 | ) |
| Net realized gain on investments and foreign currency related transactions | | | 11,339,139 | | | | 27,811,655 | | | | 15,124,072 | | | | 26,954,117 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (56,974,513 | ) | | | 6,761,896 | | | | (10,975,811 | ) | | | 21,662,769 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (41,158,173 | ) | | | 44,516,861 | | | | 4,618,085 | | | | 48,249,127 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (2,375,404 | ) | | | (5,670,697 | ) | | | (1,265,333 | ) | | | (2,937,873 | ) |
| Class B | | | (600,277 | ) | | | (1,472,137 | ) | | | — | | | | — | |
| Class C | | | (1,343,771 | ) | | | (2,980,276 | ) | | | — | | | | — | |
| Class I | | | (17 | ) | | | (8 | ) | | | (26 | ) | | | — | |
| Class O | | | (387,960 | ) | | | (499,649 | ) | | | — | | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (12,404,290 | ) | | | (5,696,724 | ) | | | (26,908,550 | ) | | | (3,999,909 | ) |
| Class B | | | (3,985,012 | ) | | | (2,232,186 | ) | | | — | | | | — | |
| Class C | | | (8,739,875 | ) | | | (3,980,153 | ) | | | — | | | | — | |
| Class I | | | (77 | ) | | | — | | | | (400 | ) | | | — | |
| Class O | | | (1,777,436 | ) | | | (83,443 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (31,614,119 | ) | | | (22,615,273 | ) | | | (28,174,309 | ) | | | (6,937,782 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 35,345,650 | | | | 202,562,312 | | | | 10,802,198 | | | | 16,678,962 | |
| Reinvestment of distributions | | | 21,878,468 | | | | 14,663,596 | | | | 25,092,384 | | | | 6,190,526 | |
| | | | | | | | | | | | | | | | | |
| | | | 57,224,118 | | | | 217,225,908 | | | | 35,894,582 | | | | 22,869,488 | |
| Cost of shares redeemed | | | (87,924,623 | ) | | | (81,136,802 | ) | | | (14,953,948 | ) | | | (27,924,321 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (30,700,505 | ) | | | 136,089,106 | | | | 20,940,634 | | | | (5,054,833 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (103,472,797 | ) | | | 157,990,694 | | | | (2,615,590 | ) | | | 36,256,512 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 389,264,276 | | | | 231,273,582 | | | | 157,368,935 | | | | 121,112,423 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 285,791,479 | | | $ | 389,264,276 | | | $ | 154,753,345 | | | $ | 157,368,935 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income (distribution in excess of net investment income) at end of period | | $ | 2,035,617 | | | $ | 2,265,845 | | | $ | (279,560 | ) | | $ | 515,975 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
55
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Global Real Estate Fund | | ING Global Value Choice Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 11,114,869 | | | $ | 9,309,818 | | | $ | (23,656 | ) | | $ | (279,174 | ) |
| Net realized gain (loss) on investments and foreign currency related transactions | | | (56,564,598 | ) | | | 3,038,303 | | | | 6,446,649 | | | | 20,403,387 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (130,248,150 | ) | | | 111,748,957 | | | | (18,131,580 | ) | | | 11,089,799 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (175,697,879 | ) | | | 124,097,078 | | | | (11,708,587 | ) | | | 31,214,012 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (25,633,722 | ) | | | (36,353,919 | ) | | | (330,676 | ) | | | — | |
| Class B | | | (1,257,564 | ) | | | (2,289,473 | ) | | | — | | | | — | |
| Class C | | | (6,418,232 | ) | | | (9,440,529 | ) | | | (28,732 | ) | | | — | |
| Class I | | | (2,719,571 | ) | | | (1,235,834 | ) | | | (77,786 | ) | | | — | |
| Class O | | | (569,054 | ) | | | (800,532 | ) | | | — | | | | — | |
| Class Q | | | — | | | | — | | | | (15,997 | ) | | | — | |
| Class W | | | (23,690 | ) | | | — | | | | — | | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (1,914,849 | ) | | | (7,533,675 | ) | | | — | | | | — | |
| Class B | | | (111,208 | ) | | | (577,495 | ) | | | — | | | | — | |
| Class C | | | (570,013 | ) | | | (2,018,085 | ) | | | — | | | | — | |
| Class I | | | (144,690 | ) | | | (167,262 | ) | | | — | | | | — | |
| Class O | | | (44,110 | ) | | | (47,650 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (39,406,703 | ) | | | (60,464,454 | ) | | | (453,191 | ) | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 605,379,963 | | | | 1,452,457,984 | | | | 23,701,461 | | | | 23,951,269 | |
| Reinvestment of distributions | | | 30,827,171 | | | | 46,781,605 | | | | 305,217 | | | | — | |
| | | | | | | | | | | | | | | | | |
| | | | 636,207,134 | | | | 1,499,239,589 | | | | 24,006,678 | | | | 23,951,269 | |
| Cost of shares redeemed | | | (367,519,336 | ) | | | (602,805,919 | ) | | | (20,955,562 | ) | | | (30,529,879 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 268,687,798 | | | | 896,433,670 | | | | 3,051,116 | | | | (6,578,610 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 53,583,216 | | | | 960,066,294 | | | | (9,110,662 | ) | | | 24,635,402 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 1,579,571,445 | | | | 619,505,151 | | | | 130,683,159 | | | | 106,047,757 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 1,633,154,661 | | | $ | 1,579,571,445 | | | $ | 121,572,497 | | | $ | 130,683,159 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income (distribution in excess of net investment income) at end of period | | $ | (34,389,294 | ) | | $ | (8,882,330 | ) | | $ | (67,675 | ) | | $ | 409,172 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
56
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | |
| | | ING Asia-Pacific
| | ING Disciplined International
|
| | | Real Estate Fund | | SmallCap Fund |
| | | November 1,
| | Six Months
| | December 20,
|
| | | 2007(1) to
| | Ended
| | 2006(1) to
|
| | | April 30,
| | April 30,
| | October 31,
|
| | | 2008 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 24,030 | | | $ | 3,794,899 | | | $ | 2,228,967 | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | (638,046 | ) | | | (31,674,609 | ) | | | 2,282,503 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (401,341 | ) | | | (46,718,679 | ) | | | 22,941,221 | |
| | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (1,015,357 | ) | | | (74,598,389 | ) | | | 27,452,691 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | |
| Class A | | | (30,443 | ) | | | (541 | ) | | | — | |
| Class B | | | (141 | ) | | | (2 | ) | | | — | |
| Class C | | | (421 | ) | | | (25 | ) | | | — | |
| Class I | | | (6 | ) | | | (2,965,190 | ) | | | — | |
| Net realized gains: | | | | | | | | | | | | |
| Class A | | | — | | | | (1,783 | ) | | | — | |
| Class B | | | — | | | | (84 | ) | | | — | |
| Class C | | | — | | | | (892 | ) | | | — | |
| Class I | | | — | | | | (7,916,891 | ) | | | — | |
| | | | | | | | | | | | | |
| Total distributions | | | (31,011 | ) | | | (10,885,408 | ) | | | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 6,059,516 | | | | 97,513,660 | | | | 492,620,976 | |
| Reinvestment of distributions | | | 3,131 | | | | 10,885,000 | | | | — | |
| | | | | | | | | | | | | |
| | | | 6,062,647 | | | | 108,398,660 | | | | 492,620,976 | |
| Cost of shares redeemed | | | (27,318 | ) | | | (122,711,566 | ) | | | (54,286,888 | ) |
| | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 6,035,329 | | | | (14,312,906 | ) | | | 438,334,088 | |
| | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 4,988,961 | | | | (99,796,703 | ) | | | 465,786,779 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | |
| Beginning of period | | | — | | | | 465,786,779 | | | | — | |
| | | | | | | | | | | | | |
| End of period | | $ | 4,988,961 | | | $ | 365,990,076 | | | $ | 465,786,779 | |
| | | | | | | | | | | | | |
| Undistributed net investment income (distribution in excess of net investment income) at end of period | | $ | (6,981 | ) | | $ | 3,290,480 | | | $ | 2,461,339 | |
| | | | | | | | | | | | | |
| |
| (1) | Commencement of operations |
See Accompanying Notes to Financial Statements
57
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | |
| | | | | | | ING European
|
| | | ING Emerging Countries Fund | | Real Estate Fund |
| | | Six Months
| | | | November 1,
|
| | | Ended
| | Year Ended
| | 2007(1)
|
| | | April 30,
| | October 31,
| | to April 30,
|
| | | 2008 | | 2007 | | 2008 |
| |
FROM OPERATIONS: | | | | | | | | | | | | |
| Net investment income | | $ | 2,754,589 | | | $ | 3,516,628 | | | $ | 38,202 | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | 18,348,068 | | | | 46,867,839 | | | | (328,657 | ) |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (45,053,267 | ) | | | 39,650,088 | | | | 60,881 | |
| | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (23,950,610 | ) | | | 90,034,555 | | | | (229,574 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | |
| Class A | | | (2,167,497 | ) | | | (1,896,150 | ) | | | (17,918 | ) |
| Class B | | | (57,378 | ) | | | (83,261 | ) | | | — | |
| Class C | | | (291,243 | ) | | | (323,450 | ) | | | (100 | ) |
| Class I | | | (594,705 | ) | | | (446,558 | ) | | | (4 | ) |
| Class M | | | — | | | | (13,746 | ) | | | — | |
| Class Q | | | (242,630 | ) | | | (179,954 | ) | | | — | |
| Net realized gains: | | | | | | | | | | | | |
| Class A | | | (5,264,824 | ) | | | — | | | | — | |
| Class B | | | (438,355 | ) | | | — | | | | — | |
| Class C | | | (1,543,106 | ) | | | — | | | | — | |
| Class I | | | (1,145,162 | ) | | | — | | | | — | |
| Class Q | | | (548,437 | ) | | | — | | | | — | |
| | | | | | | | | | | | | |
| Total distributions | | | (12,293,337 | ) | | | (2,943,119 | ) | | | (18,022 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 51,952,743 | | | | 112,724,921 | | | | 6,406,868 | |
| Reinvestment of distributions | | | 10,523,186 | | | | 2,492,354 | | | | 1,645 | |
| | | | | | | | | | | | | |
| | | | 62,475,929 | | | | 115,217,275 | | | | 6,408,513 | |
| Cost of shares redeemed | | | (75,817,843 | ) | | | (79,923,522 | ) | | | (1,333 | ) |
| | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (13,341,914 | ) | | | 35,293,753 | | | | 6,407,180 | |
| | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (49,585,861 | ) | | | 122,385,189 | | | | 6,159,584 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | |
| Beginning of period | | | 330,644,479 | | | | 208,259,290 | | | | — | |
| | | | | | | | | | | | | |
| End of period | | $ | 281,058,618 | | | $ | 330,644,479 | | | $ | 6,159,584 | |
| | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 2,493,570 | | | $ | 3,092,434 | | | $ | 20,180 | |
| | | | | | | | | | | | | |
| |
| (1) | Commencement of operations |
See Accompanying Notes to Financial Statements
58
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Foreign Fund | | ING Greater China Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | (1,079,140 | ) | | $ | 2,085,807 | | | $ | (435,479 | ) | | $ | 210,200 | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | (2,198,812 | ) | | | 47,020,133 | | | | 6,142,714 | | | | 7,910,177 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (72,628,494 | ) | | | 111,918,325 | | | | (23,780,053 | ) | | | 29,642,227 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (75,906,446 | ) | | | 161,024,265 | | | | (18,072,818 | ) | | | 37,762,604 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | (206,726 | ) | | | (127,574 | ) |
| Class B | | | — | | | | — | | | | — | | | | (9,360 | ) |
| Class C | | | — | | | | — | | | | — | | | | (5,789 | ) |
| Class I | | | — | | | | — | | | | (210 | ) | | | (143 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (20,918,801 | ) | | | (8,170,693 | ) | | | (6,348,739 | ) | | | (219 | ) |
| Class B | | | (3,020,180 | ) | | | (1,424,431 | ) | | | (607,794 | ) | | | (24 | ) |
| Class C | | | (13,830,785 | ) | | | (5,882,217 | ) | | | (1,066,835 | ) | | | (21 | ) |
| Class I | | | (6,602,918 | ) | | | (2,373,358 | ) | | | (4,310 | ) | | | — | |
| Class Q | | | (50,212 | ) | | | (43,762 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (44,422,896 | ) | | | (17,894,461 | ) | | | (8,234,614 | ) | | | (143,130 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 116,272,136 | | | | 228,656,436 | | | | 16,164,744 | | | | 51,182,704 | |
| Reinvestment of distributions | | | 32,055,298 | | | | 12,389,371 | | | | 5,628,333 | | | | 73,388 | |
| | | | | | | | | | | | | | | | | |
| | | | 148,327,434 | | | | 241,045,807 | | | | 21,793,077 | | | | 51,256,092 | |
| Cost of shares redeemed | | | (85,167,766 | ) | | | (116,454,629 | ) | | | (26,431,350 | ) | | | (23,031,761 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 63,159,668 | | | | 124,591,178 | | | | (4,638,273 | ) | | | 28,224,331 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (57,169,674 | ) | | | 267,720,982 | | | | (30,945,705 | ) | | | 65,843,805 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 742,220,466 | | | | 474,499,484 | | | | 93,655,560 | | | | 27,811,755 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 685,050,792 | | | $ | 742,220,466 | | | $ | 62,709,855 | | | $ | 93,655,560 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income (distribution in excess of net investment income) at end of period | | $ | 5,226,340 | | | $ | 6,305,480 | | | $ | (445,334 | ) | | $ | 197,081 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
59
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Index Plus International Equity Fund | | ING International Capital Appreciation Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 1,822,302 | | | $ | 1,813,920 | | | $ | 460,913 | | | $ | 420,935 | |
| Net realized gain (loss) on investments, foreign currency related transactions and futures | | | (9,351,336 | ) | | | 12,541,967 | | | | 224,514 | | | | 5,266,719 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (19,012,943 | ) | | | 7,978,045 | | | | (15,894,779 | ) | | | 24,274,753 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (26,541,977 | ) | | | 22,333,932 | | | | (15,209,352 | ) | | | 29,962,407 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (28,649 | ) | | | (87,342 | ) | | | (46,790 | ) | | | (23,107 | ) |
| Class B | | | (8,557 | ) | | | (1,478 | ) | | | (6,221 | ) | | | (260 | ) |
| Class C | | | (13,088 | ) | | | (2,010 | ) | | | (7,324 | ) | | | (23 | ) |
| Class I | | | (2,125,491 | ) | | | (863,636 | ) | | | (1,713,778 | ) | | | (383,682 | ) |
| Class O | | | (19 | ) | | | — | | | | — | | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (221,431 | ) | | | (291,175 | ) | | | (171,474 | ) | | | (108,029 | ) |
| Class B | | | (74,576 | ) | | | (6,890 | ) | | | (29,527 | ) | | | (1,967 | ) |
| Class C | | | (113,554 | ) | | | (12,818 | ) | | | (33,222 | ) | | | (1,476 | ) |
| Class I | | | (11,934,519 | ) | | | (1,953,787 | ) | | | (4,964,217 | ) | | | (1,126,292 | ) |
| Class O | | | (106 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (14,519,990 | ) | | | (3,219,136 | ) | | | (6,972,553 | ) | | | (1,644,836 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 95,417,245 | | | | 62,111,210 | | | | 21,819,452 | | | | 73,718,329 | |
| Proceeds from shares issued in merger (Note 13) | | | 128,431,314 | | | | — | | | | — | | | | — | |
| Reinvestment of distributions | | | 14,382,164 | | | | 2,857,702 | | | | 6,792,519 | | | | 1,517,633 | |
| | | | | | | | | | | | | | | | | |
| | | | 238,230,723 | | | | 64,968,912 | | | | 28,611,971 | | | | 75,235,962 | |
| Cost of shares redeemed | | | (44,524,153 | ) | | | (52,958,552 | ) | | | (7,352,070 | ) | | | (7,155,866 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | 193,706,570 | | | | 12,010,360 | | | | 21,259,901 | | | | 68,080,096 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 152,644,603 | | | | 31,125,156 | | | | (922,004 | ) | | | 96,397,667 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 123,017,427 | | | | 91,892,271 | | | | 147,406,227 | | | | 51,008,560 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 275,662,030 | | | $ | 123,017,427 | | | $ | 146,484,223 | | | $ | 147,406,227 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 1,805,161 | | | $ | 2,158,663 | | | $ | 452,293 | | | $ | 1,765,493 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
60
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING International
| | ING International
|
| | | Equity Dividend Fund | | Growth Opportunities Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | June 28, 2007(1)
| | Ended
| | Year Ended
|
| | | April 30,
| | to October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 941,636 | | | $ | 193,602 | | | $ | 232,803 | | | $ | 128,203 | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | (192,744 | ) | | | 130,192 | | | | 5,019,397 | | | | 23,520,588 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (6,656,206 | ) | | | 3,429,639 | | | | (17,781,920 | ) | | | 11,840,950 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (5,907,314 | ) | | | 3,753,433 | | | | (12,529,720 | ) | | | 35,489,741 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (60,257 | ) | | | — | | | | (83,294 | ) | | | (680,068 | ) |
| Class B | | | (3,158 | ) | | | — | | | | — | | | | (66,840 | ) |
| Class C | | | (20,108 | ) | | | — | | | | — | | | | (70,208 | ) |
| Class I | | | (830,872 | ) | | | — | | | | (34,259 | ) | | | (212,485 | ) |
| Class Q | | | — | | | | — | | | | (72,032 | ) | | | (379,024 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (15,847 | ) | | | — | | | | (9,436,503 | ) | | | (5,041,992 | ) |
| Class B | | | (884 | ) | | | — | | | | (2,576,516 | ) | | | (1,473,205 | ) |
| Class C | | | (6,628 | ) | | | — | | | | (2,904,702 | ) | | | (1,405,761 | ) |
| Class I | | | (212,974 | ) | | | — | | | | (1,519,864 | ) | | | (1,170,829 | ) |
| Class Q | | | — | | | | — | | | | (4,634,332 | ) | | | (2,425,795 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (1,150,728 | ) | | | — | | | | (21,261,502 | ) | | | (12,926,207 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 6,663,736 | | | | 57,663,013 | | | | 17,606,100 | | | | 24,042,736 | |
| Reinvestment of distributions | | | 1,127,441 | | | | — | | | | 18,676,003 | | | | 11,571,000 | |
| | | | | | | | | | | | | | | | | |
| | | | 7,791,177 | | | | 57,663,013 | | | | 36,282,103 | | | | 35,613,736 | |
| Cost of shares redeemed | | | (8,258,625 | ) | | | (110,155 | ) | | | (22,173,897 | ) | | | (46,253,686 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (467,448 | ) | | | 57,552,858 | | | | 14,108,206 | | | | (10,639,950 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (7,525,490 | ) | | | 61,292,610 | | | | (19,683,016 | ) | | | 11,923,584 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 61,306,291 | | | | — | | | | 143,828,509 | | | | 131,904,925 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 53,780,801 | | | $ | 61,306,291 | | | $ | 124,145,493 | | | $ | 143,828,509 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 341,256 | | | $ | 314,015 | | | $ | 162,166 | | | $ | 118,948 | |
| | | | | | | | | | | | | | | | | |
| |
| (1) | Commencement of operations |
See Accompanying Notes to Financial Statements
61
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING International
| | ING International
|
| | | Real Estate Fund | | SmallCap Multi-Manager Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 4,552,137 | | | $ | 2,572,223 | | | $ | 4,496,025 | | | $ | 6,261,927 | |
| Net realized gain (loss) on investments, foreign currency related transactions and written options | | | (24,576,333 | ) | | | (5,927,606 | ) | | | (32,566,458 | ) | | | 139,620,023 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (62,646,036 | ) | | | 67,077,885 | | | | (186,939,745 | ) | | | 138,128,121 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (82,670,232 | ) | | | 63,722,502 | | | | (215,010,178 | ) | | | 284,010,071 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (8,810,968 | ) | | | (3,122,648 | ) | | | (2,482,496 | ) | | | (1,450,677 | ) |
| Class B | | | (318,498 | ) | | | (87,059 | ) | | | — | | | | — | |
| Class C | | | (3,540,598 | ) | | | (800,946 | ) | | | — | | | | (3,361 | ) |
| Class I | | | (9,545,253 | ) | | | (1,247,020 | ) | | | (2,905,473 | ) | | | (1,454,644 | ) |
| Class Q | | | — | | | | — | | | | (658,389 | ) | | | (542,824 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | — | | | | (60,559,522 | ) | | | — | |
| Class B | | | — | | | | — | | | | (7,139,435 | ) | | | — | |
| Class C | | | — | | | | — | | | | (12,891,923 | ) | | | — | |
| Class I | | | — | | | | — | | | | (43,980,498 | ) | | | — | |
| Class Q | | | — | | | | — | | | | (14,055,684 | ) | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (22,215,317 | ) | | | (5,257,673 | ) | | | (144,673,420 | ) | | | (3,451,506 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 355,481,512 | | | | 476,221,868 | | | | 174,722,268 | | | | 582,975,064 | |
| Reinvestment of distributions | | | 11,039,235 | | | | 3,314,796 | | | | 106,415,697 | | | | 2,386,090 | |
| | | | | | | | | | | | | | | | | |
| | | | 366,520,747 | | | | 479,536,664 | | | | 281,137,965 | | | | 585,361,154 | |
| Cost of shares redeemed | | | (131,785,303 | ) | | | (97,047,896 | ) | | | (243,324,969 | ) | | | (251,064,888 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | 234,735,444 | | | | 382,488,768 | | | | 37,812,996 | | | | 334,296,266 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | 129,849,895 | | | | 440,953,597 | | | | (321,870,602 | ) | | | 614,854,831 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 531,801,201 | | | | 90,847,604 | | | | 1,201,307,419 | | | | 586,452,588 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 661,651,096 | | | $ | 531,801,201 | | | $ | 879,436,817 | | | $ | 1,201,307,419 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 1,117,494 | | | $ | 18,780,674 | | | $ | 4,759,943 | | | $ | 6,310,276 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
62
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING International
| | ING International
|
| | | Value Fund | | Value Choice Fund |
| | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 42,748,488 | | | $ | 56,997,675 | | | $ | 310,449 | | | $ | 961,863 | |
| Net realized gain on investments and foreign currency related transactions | | | 471,451,948 | | | | 773,210,681 | | | | 4,534,431 | | | | 11,127,404 | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (996,696,041 | ) | | | 111,070,822 | | | | (9,562,832 | ) | | | 5,114,818 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (482,495,605 | ) | | | 941,279,178 | | | | (4,717,952 | ) | | | 17,204,085 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (20,593,112 | ) | | | (18,482,190 | ) | | | (112,875 | ) | | | (98,246 | ) |
| Class B | | | (250,157 | ) | | | (533,208 | ) | | | (307 | ) | | | — | |
| Class C | | | (2,488,818 | ) | | | (1,845,996 | ) | | | — | | | | — | |
| Class I | | | (29,292,792 | ) | | | (22,422,943 | ) | | | (693,103 | ) | | | (317,928 | ) |
| Class Q | | | (353,269 | ) | | | (267,155 | ) | | | — | | | | — | |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | (304,767,165 | ) | | | (197,689,141 | ) | | | (2,221,665 | ) | | | (310,768 | ) |
| Class B | | | (41,150,109 | ) | | | (36,175,155 | ) | | | (507,826 | ) | | | (60,618 | ) |
| Class C | | | (110,803,630 | ) | | | (73,056,964 | ) | | | (656,889 | ) | | | (75,307 | ) |
| Class I | | | (313,841,980 | ) | | | (171,997,304 | ) | | | (8,389,969 | ) | | | (671,110 | ) |
| Class Q | | | (3,792,183 | ) | | | (2,584,599 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (827,333,215 | ) | | | (525,054,655 | ) | | | (12,582,634 | ) | | | (1,533,977 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 495,885,722 | | | | 981,748,449 | | | | 10,258,540 | | | | 62,085,850 | |
| Reinvestment of distributions | | | 592,169,643 | | | | 372,072,665 | | | | 11,960,549 | | | | 1,417,746 | |
| | | | | | | | | | | | | | | | | |
| | | | 1,088,055,365 | | | | 1,353,821,114 | | | | 22,219,089 | | | | 63,503,596 | |
| Cost of shares redeemed | | | (1,001,531,829 | ) | | | (1,219,257,275 | ) | | | (15,162,713 | ) | | | (56,041,699 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | 86,523,536 | | | | 134,563,839 | | | | 7,056,376 | | | | 7,461,897 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (1,223,305,284 | ) | | | 550,788,362 | | | | (10,244,210 | ) | | | 23,132,005 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 5,398,777,474 | | | | 4,847,989,112 | | | | 85,746,502 | | | | 62,614,497 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 4,175,472,190 | | | $ | 5,398,777,474 | | | $ | 75,502,292 | | | $ | 85,746,502 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income at end of period | | $ | 42,724,658 | | | $ | 52,954,318 | | | $ | 313,988 | | | $ | 809,824 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
63
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | ING International
| | | | |
| | | Value Opportunities Fund | | ING Russia Fund | | |
| | | Six Months
| | February 28,
| | Six Months
| | Year
| | |
| | | Ended
| | 2007(1)
| | Ended
| | Ended
| | |
| | | April 30,
| | to October 31,
| | April 30,
| | October 31,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | 80,428 | | | $ | 173,417 | | | $ | (5,572,612 | ) | | $ | (4,511,889 | ) | | | | |
| Net realized gain (loss) on investments and foreign currency related transactions | | | (256,801 | ) | | | 55,392 | | | | 138,051,228 | | | | 142,284,643 | | | | | |
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | | | (918,297 | ) | | | 413,314 | | | | (146,413,352 | ) | | | 177,636,410 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (1,094,670 | ) | | | 642,123 | | | | (13,934,736 | ) | | | 315,409,164 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (202,959 | ) | | | — | | | | — | | | | — | | | | | |
| Class B | | | (20 | ) | | | — | | | | — | | | | — | | | | | |
| Class C | | | (558 | ) | | | — | | | | — | | | | — | | | | | |
| Class I | | | (24 | ) | | | — | | | | — | | | | — | | | | | |
| Net realized gains: | | | | | | | | | | | | | | | | | | | | |
| Class A | | | (49,157 | ) | | | — | | | | (137,654,710 | ) | | | (43,574,710 | ) | | | | |
| Class B | | | (10 | ) | | | — | | | | — | | | | — | | | | | |
| Class C | | | (132 | ) | | | — | | | | — | | | | — | | | | | |
| Class I | | | (5 | ) | | | — | | | | — | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (252,865 | ) | | | — | | | | (137,654,710 | ) | | | (43,574,710 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 65,195 | | | | 10,090,135 | | | | 130,212,288 | | | | 280,987,914 | | | | | |
| Reinvestment of distributions | | | 1,517 | | | | — | | | | 116,864,014 | | | | 37,402,991 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 66,712 | | | | 10,090,135 | | | | 247,076,302 | | | | 318,390,905 | | | | | |
| Redemption Fee Proceeds | | | — | | | | — | | | | 322,893 | | | | 3,086,432 | | | | | |
| Cost of shares redeemed | | | (2,925 | ) | | | (29,678 | ) | | | (121,075,368 | ) | | | (422,755,301 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | 63,787 | | | | 10,060,457 | | | | 126,323,827 | | | | (101,277,964 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (1,283,748 | ) | | | 10,702,580 | | | | (25,265,619 | ) | | | 170,556,490 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | | 10,702,580 | | | | — | | | | 922,503,740 | | | | 751,947,250 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| End of period | | $ | 9,418,832 | | | $ | 10,702,580 | | | $ | 897,238,121 | | | $ | 922,503,740 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Undistributed net investment income (accumulated net investment loss) at end of period | | $ | 77,070 | | | $ | 200,203 | | | $ | (5,572,612 | ) | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
(1) Commencement of operations
See Accompanying Notes to Financial Statements
64
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | |
| | | ING Emerging Markets
| | |
| | | Fixed Income Fund | | ING Global Bond Fund |
| | | Six Months
| | Year
| | Six Months
| | Year
|
| | | Ended
| | Ended
| | Ended
| | Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | | | | | | | | | |
| Net investment income | | $ | 10,518,674 | | | $ | 7,527,851 | | | $ | 810,979 | | | $ | 823,069 | |
| Net realized gain (loss) on investments, foreign currency related transactions, futures and swaps | | | (1,648,878 | ) | | | (723,798 | ) | | | 3,169,693 | | | | 798,273 | |
| Net change in unrealized appreciation or depreciation on investments, foreign currency related transactions, futures and swaps | | | (10,735,209 | ) | | | 406,474 | | | | 21,201 | | | | 939,686 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (1,865,413 | ) | | | 7,210,527 | | | | 4,001,873 | | | | 2,561,028 | |
| | | | | | | | | | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | | | | | | | |
| Net investment income: | | | | | | | | | | | | | | | | |
| Class A | | | (244,944 | ) | | | (1,326,791 | ) | | | (2,764,788 | ) | | | (1,111,960 | ) |
| Class B | | | (10,006 | ) | | | (17,775 | ) | | | (80,005 | ) | | | (6,982 | ) |
| Class C | | | (45,410 | ) | | | (40,349 | ) | | | (572,365 | ) | | | (15,266 | ) |
| Class I | | | (10,095,872 | ) | | | (6,243,283 | ) | | | (3,551 | ) | | | (47 | ) |
| Net realized gains: | | | | | | | | | | | | | | | | |
| Class A | | | — | | | | (71,166 | ) | | | (369,378 | ) | | | (443,199 | ) |
| Class B | | | — | | | | (814 | ) | | | (6,552 | ) | | | (718 | ) |
| Class C | | | — | | | | (946 | ) | | | (30,696 | ) | | | (756 | ) |
| Class I | | | — | | | | — | | | | (12 | ) | | | (18 | ) |
| | | | | | | | | | | | | | | | | |
| Total distributions | | | (10,396,232 | ) | | | (7,701,124 | ) | | | (3,827,347 | ) | | | (1,578,946 | ) |
| | | | | | | | | | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | | | | | | | | | |
| Net proceeds from sale of shares | | | 66,629,183 | | | | 310,896,270 | | | | 80,715,843 | | | | 4,813,090 | |
| Reinvestment of distributions | | | 10,274,145 | | | | 6,461,870 | | | | 1,693,062 | | | | 44,534 | |
| | | | | | | | | | | | | | | | | |
| | | | 76,903,328 | | | | 317,358,140 | | | | 82,408,905 | | | | 4,857,624 | |
| Cost of shares redeemed | | | (89,480,547 | ) | | | (27,962,963 | ) | | | (6,208,335 | ) | | | (830,470 | ) |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets resulting from capital share transactions | | | (12,577,219 | ) | | | 289,395,177 | | | | 76,200,570 | | | | 4,027,154 | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net assets | | | (24,838,864 | ) | | | 288,904,580 | | | | 76,375,096 | | | | 5,009,236 | |
| | | | | | | | | | | | | | | | | |
NET ASSETS: | | | | | | | | | | | | | | | | |
| Beginning of period | | | 315,662,419 | | | | 26,757,839 | | | | 30,857,433 | | | | 25,848,197 | |
| | | | | | | | | | | | | | | | | |
| End of period | | $ | 290,823,555 | | | $ | 315,662,419 | | | $ | 107,232,529 | | | $ | 30,857,433 | |
| | | | | | | | | | | | | | | | | |
| Undistributed net investment income (distribution in excess of net investment income) at end of period | | $ | 122,442 | | | $ | — | | | $ | (2,584,756 | ) | | $ | 24,974 | |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
65
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | |
| | | ING Diversified International Fund |
| | | Six Months
| | Year
|
| | | Ended
| | Ended
|
| | | April 30,
| | October 31,
|
| | | 2008 | | 2007 |
| |
FROM OPERATIONS: | | | | | | | | |
| Net investment income | | $ | 5,487,269 | | | $ | 431,276 | |
| Net realized gain on investments in affiliated underlying funds | | | 28,681,208 | | | | 7,816,137 | |
| Net change in unrealized appreciation or depreciation on investments in affiliated underlying funds | | | (101,343,801 | ) | | | 97,142,153 | |
| | | | | | | | | |
| Increase (decrease) in net assets resulting from operations | | | (67,175,324 | ) | | | 105,389,566 | |
| | | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | |
| Net investment income: | | | | | | | | |
| Class A | | | (6,883,233 | ) | | | (968,683 | ) |
| Class B | | | (519,915 | ) | | | (17,195 | ) |
| Class C | | | (2,156,592 | ) | | | (76,872 | ) |
| Class I | | | (586 | ) | | | (55 | ) |
| Class R | | | (6,279 | ) | | | (472 | ) |
| Net realized gains: | | | | | | | | |
| Class A | | | (2,346,495 | ) | | | — | |
| Class B | | | (269,552 | ) | | | — | |
| Class C | | | (1,057,058 | ) | | | — | |
| Class I | | | (180 | ) | | | — | |
| Class R | | | (2,520 | ) | | | — | |
| | | | | | | | | |
| Total distributions | | | (13,242,410 | ) | | | (1,063,277 | ) |
| | | | | | | | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | | | | | |
| Net proceeds from sale of shares | | | 117,666,114 | | | | 299,856,179 | |
| Reinvestment of distributions | | | 9,865,970 | | | | 792,330 | |
| | | | | | | | | |
| | | | 127,532,084 | | | | 300,648,509 | |
| Cost of shares redeemed | | | (76,880,265 | ) | | | (71,791,916 | ) |
| | | | | | | | | |
| Net increase in net assets resulting from capital share transactions | | | 50,651,819 | | | | 228,856,593 | |
| | | | | | | | | |
| Net increase (decrease) in net assets | | | (29,765,915 | ) | | | 333,182,882 | |
| | | | | | | | | |
NET ASSETS: | | | | | | | | |
| Beginning of period | | | 596,155,428 | | | | 262,972,546 | |
| | | | | | | | | |
| End of period | | $ | 566,389,513 | | | $ | 596,155,428 | |
| | | | | | | | | |
| Undistributed net investment income (distribution in excess of net investment income) at end of period | | $ | (555,752 | ) | | $ | 3,523,584 | |
| | | | | | | | | |
See Accompanying Notes to Financial Statements
66
ING Global Equity Dividend Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | September 17,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 16.84 | | | | 15.76 | | | | 13.07 | | | | 12.41 | | | | 10.49 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.24 | | | | 0.54 | * | | | 0.54 | | | | 0.47 | * | | | 0.44 | | | | 0.02 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.96 | ) | | | 1.84 | | | | 2.85 | | | | 0.92 | | | | 1.87 | | | | 0.47 | |
| Total from investment operations | | $ | | | (1.72 | ) | | | 2.38 | | | | 3.39 | | | | 1.39 | | | | 2.31 | | | | 0.49 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.23 | | | | 0.55 | | | | 0.51 | | | | 0.54 | | | | 0.39 | | | | — | |
| Net realized gains on investments | | $ | | | 1.20 | | | | 0.75 | | | | 0.19 | | | | 0.19 | | | | — | | | | — | |
| Total distributions | | $ | | | 1.43 | | | | 1.30 | | | | 0.70 | | | | 0.73 | | | | 0.39 | | | | — | |
| Net asset value, end of period | | $ | | | 13.69 | | | | 16.84 | | | | 15.76 | | | | 13.07 | | | | 12.41 | | | | 10.49 | |
Total Return(2) | | % | | | (10.43 | ) | | | 15.80 | | | | 26.56 | | | | 11.45 | | | | 22.59 | | | | 4.90 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 125,760 | | | | 182,669 | | | | 108,911 | | | | 73,186 | | | | 11,316 | | | | 4,274 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 1.37 | | | | 1.26 | | | | 1.27 | | | | 1.28 | | | | 3.44 | | | | 7.00 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.37 | | | | 1.26 | | | | 1.33 | | | | 1.40 | | | | 1.40 | | | | 1.40 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 3.17 | | | | 3.31 | | | | 3.76 | | | | 3.60 | | | | 4.39 | | | | 3.58 | |
| Portfolio turnover rate | | % | | | 15 | | | | 36 | | | | 50 | | | | 57 | | | | 60 | | | | 3 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | October 24,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 16.79 | | | | 15.72 | | | | 13.05 | | | | 12.37 | | | | 10.49 | | | | 10.31 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.39 | | | | 0.43 | | | | 0.37 | * | | | 0.42 | | | | 0.00 | ** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.95 | ) | | | 1.86 | | | | 2.84 | | | | 0.92 | | | | 1.82 | | | | 0.18 | |
| Total from investment operations | | $ | | | (1.77 | ) | | | 2.25 | | | | 3.27 | | | | 1.29 | | | | 2.24 | | | | 0.18 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.43 | | | | 0.41 | | | | 0.42 | | | | 0.36 | | | | — | |
| Net realized gains on investments | | $ | | | 1.20 | | | | 0.75 | | | | 0.19 | | | | 0.19 | | | | — | | | | — | |
| Total distributions | | $ | | | 1.38 | | | | 1.18 | | | | 0.60 | | | | 0.61 | | | | 0.36 | | | | — | |
| Net asset value, end of period | | $ | | | 13.64 | | | | 16.79 | | | | 15.72 | | | | 13.05 | | | | 12.37 | | | | 10.49 | |
Total Return(2) | | % | | | (10.80 | ) | | | 14.94 | | | | 25.55 | | | | 10.65 | | | | 21.92 | | | | 1.75 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 42,034 | | | | 58,093 | | | | 44,936 | | | | 28,811 | | | | 3,303 | | | | 12 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 2.12 | | | | 2.01 | | | | 2.02 | | | | 2.03 | | | | 4.19 | | | | 7.75 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 2.12 | | | | 2.01 | | | | 2.08 | | | | 2.15 | | | | 2.15 | | | | 2.15 | |
Net investment income (loss) after expense waiver/recoupment(3)(4) | | % | | | 2.43 | | | | 2.53 | | | | 3.05 | | | | 2.83 | | | | 4.03 | | | | (0.67 | ) |
| Portfolio turnover rate | | % | | | 15 | | | | 36 | | | | 50 | | | | 57 | | | | 60 | | | | 3 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
67
ING Global Equity Dividend Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | October 29,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 16.75 | | | | 15.69 | | | | 13.02 | | | | 12.37 | | | | 10.48 | | | | 10.44 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.39 | | | | 0.43 | | | | 0.37 | * | | | 0.39 | | | | 0.00 | ** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.94 | ) | | | 1.86 | | | | 2.84 | | | | 0.90 | | | | 1.86 | | | | 0.04 | |
| Total from investment operations | | $ | | | (1.76 | ) | | | 2.25 | | | | 3.27 | | | | 1.27 | | | | 2.25 | | | | 0.04 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.44 | | | | 0.41 | | | | 0.43 | | | | 0.36 | | | | — | |
| Net realized gains on investments | | $ | | | 1.20 | | | | 0.75 | | | | 0.19 | | | | 0.19 | | | | — | | | | — | |
| Total distributions | | $ | | | 1.38 | | | | 1.19 | | | | 0.60 | | | | 0.62 | | | | 0.36 | | | | — | |
| Net asset value, end of period | | $ | | | 13.61 | | | | 16.75 | | | | 15.69 | | | | 13.02 | | | | 12.37 | | | | 10.48 | |
Total Return(2) | | % | | | (10.76 | ) | | | 14.94 | | | | 25.62 | | | | 10.51 | | | | 21.99 | | | | 0.38 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 94,450 | | | | 124,765 | | | | 77,426 | | | | 48,965 | | | | 3,655 | | | | 19 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 2.12 | | | | 2.01 | | | | 2.02 | | | | 2.03 | | | | 4.19 | | | | 7.75 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 2.12 | | | | 2.01 | | | | 2.08 | | | | 2.15 | | | | 2.15 | | | | 2.15 | |
Net investment income (loss) after expense waiver/recoupment(3)(4) | | % | | | 2.44 | | | | 2.54 | | | | 3.03 | | | | 2.82 | | | | 3.99 | | | | (0.88 | ) |
| Portfolio turnover rate | | % | | | 15 | | | | 36 | | | | 50 | | | | 57 | | | | 60 | | | | 3 | |
|
| | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | August 1,
|
| | | | | Ended
| | 2007(1) to
|
| | | | | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 16.83 | | | | 15.81 | |
| Income (loss) from investment operations: | | | | | | | | | | |
| Net investment income | | $ | | | 0.26 | * | | | 0.12 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.93 | ) | | | 1.03 | |
| Total from investment operations | | $ | | | (1.67 | ) | | | 1.15 | |
| Less distributions from: | | | | | | | | | | |
| Net investment income | | $ | | | 0.26 | | | | 0.13 | |
| Net realized gains on investments | | $ | | | 1.20 | | | | — | |
| Total distributions | | $ | | | 1.46 | | | | 0.13 | |
| Net asset value, end of period | | $ | | | 13.70 | | | | 16.83 | |
Total Return(2) | | % | | | (10.15 | ) | | | 7.26 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 1 | | | | 1 | |
| Ratios to average net assets: | | | | | | | | | | |
Expenses(3) | | % | | | 0.99 | | | | 0.90 | |
Net investment income(3) | | % | | | 3.57 | | | | 2.98 | |
| Portfolio turnover rate | | % | | | 15 | | | | 36 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
68
ING Global Equity Dividend Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | |
| | | | | Class O |
| | | | | Six Months
| | November 15,
|
| | | | | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 16.83 | | | | 15.86 | |
| Income (loss) from investment operations: | | | | | | | | | | |
| Net investment income | | $ | | | 0.23 | * | | | 0.55 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.94 | ) | | | 1.74 | |
| Total from investment operations | | $ | | | (1.71 | ) | | | 2.29 | |
| Less distributions from: | | | | | | | | | | |
| Net investment income | | $ | | | 0.24 | | | | 0.57 | |
| Net realized gains on investments | | $ | | | 1.20 | | | | 0.75 | |
| Total distributions | | $ | | | 1.44 | | | | 1.32 | |
| Net asset value, end of period | | $ | | | 13.68 | | | | 16.83 | |
Total Return(2) | | % | | | (10.48 | ) | | | 15.12 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 23,545 | | | | 23,737 | |
| Ratios to average net assets: | | | | | | | | | | |
Expenses(3) | | % | | | 1.38 | | | | 1.26 | |
Net investment income(3) | | % | | | 3.26 | | | | 3.46 | |
| Portfolio turnover rate | | % | | | 15 | | | | 36 | |
|
| | | | | | | |
| | | | | Class W |
| | | | | February 12,
|
| | | | | 2008(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.51 | |
| Income from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.20 | * |
| Net realized and unrealized gain on investments and foreign currency related transactions | | $ | | | 0.26 | |
| Total from investment operations | | $ | | | 0.46 | |
| Less distributions from: | | | | | | |
| Net investment income | | $ | | | 0.12 | |
| Total distributions | | $ | | | 0.12 | |
| Net asset value, end of period | | $ | | | 14.85 | |
Total Return(2) | | % | | | 3.15 | |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 2 | |
| Ratios to average net assets: | | | | | | |
Expenses(3) | | % | | | 0.99 | |
Net investment income(3) | | % | | | 6.42 | |
| Portfolio turnover rate | | % | | | 15 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
69
ING Global Natural Resources Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.18 | | | | 10.46 | | | | 7.34 | | | | 7.09 | | | | 6.94 | | | | 4.40 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.04 | * | | | (0.03 | ) | | | (0.06 | ) | | | (0.06 | ) | | | (0.05 | ) | | | (0.02 | ) |
| Net realized and unrealized gain on investments and foreign currency related transactions | | $ | | | 0.19 | | | | 4.36 | | | | 3.20 | | | | 0.54 | | | | 0.20 | | | | 2.56 | |
| Total from investment operations | | $ | | | 0.23 | | | | 4.33 | | | | 3.14 | | | | 0.48 | | | | 0.15 | | | | 2.54 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.11 | | | | 0.26 | | | | 0.02 | | | | 0.23 | | | | — | | | | — | |
| Net realized gains on investments | | $ | | | 2.45 | | | | 0.35 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 2.56 | | | | 0.61 | | | | 0.02 | | | | 0.23 | | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 11.85 | | | | 14.18 | | | | 10.46 | | | | 7.34 | | | | 7.09 | | | | 6.94 | |
Total Return(2) | | % | | | 3.51 | | | | 43.22 | | | | 42.76 | | | | 6.81 | | | | 2.16 | | | | 57.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 154,751 | | | | 157,367 | | | | 121,112 | | | | 87,441 | | | | 91,756 | | | | 101,696 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses(3) | | % | | | 1.43 | † | | | 1.44 | † | | | 1.42 | | | | 1.56 | | | | 1.44 | | | | 1.57 | |
Net investment income (loss)(3) | | % | | | 0.65 | | | | (0.28 | ) | | | (0.61 | ) | | | (0.77 | ) | | | (0.69 | ) | | | (0.36 | ) |
| Portfolio turnover rate | | % | | | 77 | | | | 121 | | | | 158 | | | | 78 | | | | 77 | | | | 94 | |
|
| | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | August 1,
|
| | | | | Ended
| | 2007(1) to
|
| | | | | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.19 | | | | 12.07 | |
| Income from investment operations: | | | | | | | | | | |
| Net investment income | | $ | | | 0.09 | * | | | 0.00 | ** |
| Net realized and unrealized gain on investments and foreign currency related transactions | | $ | | | 0.17 | | | | 2.12 | |
| Total from investment operations | | $ | | | 0.26 | | | | 2.12 | |
| Less distributions from: | | | | | | | | | | |
| Net investment income | | $ | | | 0.16 | | | | — | |
| Net realized gains on investments | | $ | | | 2.45 | | | | — | |
| Total distributions | | $ | | | 2.61 | | | | — | |
| Net asset value, end of period | | $ | | | 11.84 | | | | 14.19 | |
Total Return(2) | | % | | | 3.73 | | | | 17.56 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 1 | | | | 2 | |
| Ratios to average net assets: | | | | | | | | | | |
Expenses(3) | | % | | | 1.08 | † | | | 1.08 | † |
Net investment income(3) | | % | | | 1.53 | | | | 0.09 | |
| Portfolio turnover rate | | % | | | 77 | | | | 121 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
| |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
See Accompanying Notes to Financial Statements
70
ING Global Natural Resources Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the period.
| | | | | | | |
| | | | | Class W |
| | | | | February 12,
|
| | | | | 2008(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 12.84 | |
| Income from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.01 | |
| Net realized and unrealized gain on investments and foreign currency related transactions | | $ | | | 1.86 | |
| Total from investment operations | | $ | | | 1.87 | |
| Less distributions from: | | | | | | |
| Net investment income | | $ | | | — | |
| Total distributions | | $ | | | — | |
| Net asset value, end of period | | $ | | | 14.71 | |
Total Return(2) | | % | | | 14.56 | |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 2 | |
| Ratios to average net assets: | | | | | | |
Expenses(3) | | % | | | 1.08 | |
Net investment income(3) | | % | | | 0.40 | |
| Portfolio turnover rate | | % | | | 77 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
See Accompanying Notes to Financial Statements
71
ING Global Real Estate Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 24.19 | | | | 22.23 | | | | 17.14 | | | | 15.40 | | | | 13.06 | | | | 10.40 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.17 | * | | | 0.22 | * | | | 0.20 | * | | | 0.26 | *† | | | 0.27 | | | | 0.57 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.95 | ) | | | 3.13 | | | | 6.41 | | | | 2.94 | † | | | 3.26 | | | | 2.79 | |
| Total from investment operations | | $ | | | (2.78 | ) | | | 3.35 | | | | 6.61 | | | | 3.20 | | | | 3.53 | | | | 3.36 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.54 | | | | 1.08 | | | | 0.46 | | | | 0.54 | | | | 0.43 | | | | 0.54 | |
| Net realized gains on investments | | $ | | | 0.04 | | | | 0.31 | | | | 1.06 | | | | 0.92 | | | | 0.76 | | | | 0.16 | |
| Total distributions | | $ | | | 0.58 | | | | 1.39 | | | | 1.52 | | | | 1.46 | | | | 1.19 | | | | 0.70 | |
| Net asset value, end of period | | $ | | | 20.83 | | | | 24.19 | | | | 22.23 | | | | 17.14 | | | | 15.40 | | | | 13.06 | |
Total Return(1) | | % | | | (11.45 | ) | | | 15.44 | | | | 41.09 | | | | 21.95 | | | | 28.90 | | | | 33.77 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 1,106,337 | | | | 1,115,493 | | | | 467,405 | | | | 138,314 | | | | 95,561 | | | | 41,549 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 1.36 | | | | 1.30 | | | | 1.39 | | | | 1.50 | | | | 1.55 | | | | 1.95 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 1.36 | | | | 1.30 | | | | 1.39 | | | | 1.59 | | | | 1.75 | | | | 1.75 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 1.36 | | | | 1.30 | | | | 1.39 | | | | 1.59 | | | | 1.75 | | | | 1.75 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 1.73 | | | | 0.96 | | | | 1.04 | | | | 1.58 | † | | | 2.55 | | | | 5.14 | |
| Portfolio turnover rate | | % | | | 21 | | | | 57 | | | | 39 | | | | 91 | | | | 129 | | | | 124 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | 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 and $0.10, increase net realized and unrealized gain on investments per share by $0.12 and $0.10 and decrease the ratio of net investment income to average net assets from 2.31% to 1.58% and 1.51% to 0.79% on Class A and Class B. |
See Accompanying Notes to Financial Statements
72
ING Global Real Estate Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 20.67 | | | | 19.20 | | | | 15.01 | | | | 13.67 | | | | 11.74 | | | | 9.43 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.08 | * | | | 0.04 | * | | | 0.05 | * | | | 0.12 | *† | | | 0.14 | | | | 0.48 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.54 | ) | | | 2.69 | | | | 5.56 | | | | 2.59 | † | | | 2.90 | | | | 2.47 | |
| Total from investment operations | | $ | | | (2.46 | ) | | | 2.73 | | | | 5.61 | | | | 2.71 | | | | 3.04 | | | | 2.95 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.47 | | | | 0.95 | | | | 0.36 | | | | 0.45 | | | | 0.35 | | | | 0.48 | |
| Net realized gains on investments | | $ | | | 0.04 | | | | 0.31 | | | | 1.06 | | | | 0.92 | | | | 0.76 | | | | 0.16 | |
| Total distributions | | $ | | | 0.51 | | | | 1.26 | | | | 1.42 | | | | 1.37 | | | | 1.11 | | | | 0.64 | |
| Net asset value, end of period | | $ | | | 17.70 | | | | 20.67 | | | | 19.20 | | | | 15.01 | | | | 13.67 | | | | 11.74 | |
Total Return(1) | | % | | | (11.83 | ) | | | 14.59 | | | | 40.04 | | | | 21.05 | | | | 27.89 | | | | 32.83 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | �� | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 43,813 | | | | 57,837 | | | | 31,677 | | | | 12,302 | | | | 4,736 | | | | 1,506 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 2.11 | | | | 2.05 | | | | 2.14 | | | | 2.25 | | | | 2.30 | | | | 2.70 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 2.11 | | | | 2.05 | | | | 2.14 | | | | 2.34 | | | | 2.50 | | | | 2.50 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 2.11 | | | | 2.05 | | | | 2.14 | | | | 2.34 | | | | 2.50 | | | | 2.50 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 0.98 | | | | 0.22 | | | | 0.31 | | | | 0.79 | † | | | 1.78 | | | | 4.44 | |
| Portfolio turnover rate | | % | | | 21 | | | | 57 | | | | 39 | | | | 91 | | | | 129 | | | | 124 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | 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 and $0.10, increase net realized and unrealized gain on investments per share by $0.12 and $0.10 and decrease the ratio of net investment income to average net assets from 2.31% to 1.58% and 1.51% to 0.79% on Class A and Class B. |
See Accompanying Notes to Financial Statements
73
ING Global Real Estate Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 21.70 | | | | 20.10 | | | | 15.65 | | | | 14.19 | | | | 12.14 | | | | 9.70 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.09 | * | | | 0.04 | * | | | 0.05 | * | | | 0.12 | *† | | | 0.14 | | | | 0.45 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.66 | ) | | | 2.82 | | | | 5.82 | | | | 2.71 | † | | | 3.02 | | | | 2.60 | |
| Total from investment operations | | $ | | | (2.57 | ) | | | 2.86 | | | | 5.87 | | | | 2.83 | | | | 3.16 | | | | 3.05 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.47 | | | | 0.95 | | | | 0.36 | | | | 0.45 | | | | 0.35 | | | | 0.45 | |
| Net realized gains on investments | | $ | | | 0.04 | | | | 0.31 | | | | 1.06 | | | | 0.92 | | | | 0.76 | | | | 0.16 | |
| Total distributions | | $ | | | 0.51 | | | | 1.26 | | | | 1.42 | | | | 1.37 | | | | 1.11 | | | | 0.61 | |
| Net asset value, end of period | | $ | | | 18.62 | | | | 21.70 | | | | 20.10 | | | | 15.65 | | | | 14.19 | | | | 12.14 | |
Total Return(2) | | % | | | (11.79 | ) | | | 14.57 | | | | 40.06 | | | | 21.11 | | | | 27.93 | | | | 32.89 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 262,466 | | | | 303,235 | | | | 109,197 | | | | 27,989 | | | | 7,817 | | | | 1,732 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 2.11 | | | | 2.05 | | | | 2.14 | | | | 2.25 | | | | 2.30 | | | | 2.70 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 2.11 | | | | 2.05 | | | | 2.14 | | | | 2.34 | | | | 2.50 | | | | 2.50 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.11 | | | | 2.05 | | | | 2.14 | | | | 2.34 | | | | 2.50 | | | | 2.50 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 0.97 | | | | 0.20 | | | | 0.29 | | | | 0.78 | † | | | 1.72 | | | | 4.60 | |
| Portfolio turnover rate | | % | | | 21 | | | | 57 | | | | 39 | | | | 91 | | | | 129 | | | | 124 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | 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 $0.11, increase net realized and unrealized gain on investments per share by $0.11 and decrease the ratio of net investment income to average net assets from 1.51% to 0.78% for Class C. |
| |
| †† | | 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 five months ended October 31, 2005 was to decrease the net investment income per share by $0.30, increase net realized and unrealized gain on investments per share by $0.30 and decrease the ratio of net investment income to average net assets from 2.60% to 0.85% for Class I. |
See Accompanying Notes to Financial Statements
74
ING Global Real Estate Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | | | | | June 3,
|
| | | | | Ended
| | Year Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 24.21 | | | | 22.23 | | | | 17.14 | | | | 16.32 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.21 | * | | | 0.28 | * | | | 0.28 | * | | | 0.14 | *†† |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.96 | ) | | | 3.16 | | | | 6.39 | | | | 0.86 | †† |
| Total from investment operations | | $ | | | (2.75 | ) | | | 3.44 | | | | 6.67 | | | | 1.00 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.58 | | | | 1.15 | | | | 0.52 | | | | 0.18 | |
| Net realized gains on investments | | $ | | | 0.04 | | | | 0.31 | | | | 1.06 | | | | — | |
| Total distributions | | $ | | | 0.62 | | | | 1.46 | | | | 1.58 | | | | 0.18 | |
| Net asset value, end of period | | $ | | | 20.84 | | | | 24.21 | | | | 22.23 | | | | 17.14 | |
Total Return(2) | | % | | | (11.31 | ) | | | 15.88 | | | | 41.49 | | | | 6.14 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 171,946 | | | | 76,869 | | | | 11,226 | | | | 1,681 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.00 | | | | 0.95 | | | | 1.06 | | | | 1.22 | |
| Net expenses after expense waiver/recoupment and prior to brokerage commission recapture | | % | | | 1.00 | | | | 0.95 | | | | 1.06 | | | | 1.30 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.00 | | | | 0.95 | | | | 1.06 | | | | 1.30 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.06 | | | | 1.24 | | | | 1.40 | | | | 0.85 | †† |
| Portfolio turnover rate | | % | | | 21 | | | | 57 | | | | 39 | | | | 91 | |
| | | | | | | | | | | | | | | | | | | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | 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 $0.11, increase net realized and unrealized gain on investments per share by $0.11 and decrease the ratio of net investment income to average net assets from 1.51% to 0.78% for Class C. |
| |
| †† | | 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 five months ended October 31, 2005 was to decrease the net investment income per share by $0.30, increase net realized and unrealized gain on investments per share by $0.30 and decrease the ratio of net investment income to average net assets from 2.60% to 0.85% for Class I. |
See Accompanying Notes to Financial Statements
75
ING Global Real Estate Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the period.
| | | | | | | | | | | |
| | | | | Class O |
| | | | | Six Months
| | November 15,
|
| | | | | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 24.19 | | | | 22.20 | |
| Income (loss) from investment operations: | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.20 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.97 | ) | | | 3.20 | |
| Total from investment operations | | $ | | | (2.79 | ) | | | 3.40 | |
| Less distributions from: | | | | | | | | | | |
| Net investment income | | $ | | | 0.54 | | | | 1.10 | |
| Net realized gains on investments | | $ | | | 0.04 | | | | 0.31 | |
| Total distributions | | $ | | | 0.58 | | | | 1.41 | |
| Net asset value, end of period | | $ | | | 20.82 | | | | 24.19 | |
Total Return(2) | | % | | | (11.50 | ) | | | 15.68 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 22,292 | | | | 26,137 | |
| Ratios to average net assets: | | | | | | | | | | |
Gross expenses prior to brokerage commission recapture(3) | | % | | | 1.36 | | | | 1.30 | |
Net expenses after brokerage commission recapture(3) | | % | | | 1.36 | | | | 1.30 | |
Net investment income after brokerage commission recapture(3) | | % | | | 1.73 | | | | 0.90 | |
| Portfolio turnover rate | | % | | | 21 | | | | 57 | |
|
| | | | | | | |
| | | | | Class W |
| | | | | February 12,
|
| | | | | 2008(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 19.29 | |
| Income from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.06 | * |
| Net realized and unrealized gain on investments and foreign currency related transactions | | $ | | | 1.62 | |
| Total from investment operations | | $ | | | 1.68 | |
| Less distributions from: | | | | | | |
| Net investment income | | $ | | | 0.10 | |
| Total distributions | | $ | | | 0.10 | |
| Net asset value, end of period | | $ | | | 20.87 | |
Total Return(2) | | % | | | 8.74 | |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 26,301 | |
| Ratios to average net assets: | | | | | | |
Expenses(3) | | % | | | 1.00 | |
Net investment income(3) | | % | | | 1.37 | |
| Portfolio turnover rate | | % | | | 21 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
76
ING Global Value Choice Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 28.40 | | | | 21.72 | | | | 18.16 | | | | 15.96 | | | | 14.76 | | | | 12.36 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.04 | | | | 0.01 | | | | 0.08 | | | | 0.09 | | | | (0.04 | ) | | | (0.06 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.51 | ) | | | 6.67 | | | | 3.62 | | | | 2.11 | | | | 1.24 | | | | 2.46 | |
| Total from investment operations | | $ | | | (2.47 | ) | | | 6.68 | | | | 3.70 | | | | 2.20 | | | | 1.20 | | | | 2.40 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.16 | | | | — | | | | 0.14 | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 0.16 | | | | — | | | | 0.14 | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 25.77 | | | | 28.40 | | | | 21.72 | | | | 18.16 | | | | 15.96 | | | | 14.76 | |
Total Return(1) | | % | | | (8.71 | ) | | | 30.76 | | | | 20.48 | | | | 13.78 | † | | | 8.13 | | | | 19.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 60,184 | | | | 58,600 | | | | 47,305 | | | | 41,941 | | | | 46,133 | | | | 56,877 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 1.68 | | | | 1.77 | | | | 1.78 | | | | 1.90 | | | | 1.77 | | | | 1.93 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 1.59 | | | | 1.82 | | | | 1.78 | | | | 1.85 | | | | 1.85 | | | | 1.85 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 1.58 | | | | 1.81 | | | | 1.77 | | | | 1.85 | | | | 1.85 | | | | 1.85 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 0.28 | | | | 0.04 | | | | 0.40 | | | | 0.46 | | | | (0.21 | ) | | | (0.35 | ) |
| Portfolio turnover rate | | % | | | 33 | | | | 66 | | | | 77 | | | | 129 | | | | 101 | | | | 125 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 30.58 | | | | 23.54 | | | | 19.67 | | | | 17.39 | | | | 16.19 | | | | 13.65 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss | | $ | | | (0.08 | )* | | | (0.17 | )* | | | (0.04 | ) | | | (0.04 | ) | | | (0.17 | ) | | | (0.16 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.68 | ) | | | 7.21 | | | | 3.91 | | | | 2.32 | | | | 1.37 | | | | 2.70 | |
| Total from investment operations | | $ | | | (2.76 | ) | | | 7.04 | | | | 3.87 | | | | 2.28 | | | | 1.20 | | | | 2.54 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 27.82 | | | | 30.58 | | | | 23.54 | | | | 19.67 | | | | 17.39 | | | | 16.19 | |
Total Return(1) | | % | | | (9.03 | ) | | | 29.91 | | | | 19.67 | | | | 13.11 | † | | | 7.41 | | | | 18.61 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 15,299 | | | | 22,049 | | | | 21,364 | | | | 23,483 | | | | 28,559 | | | | 35,459 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 2.39 | | | | 2.42 | | | | 2.43 | | | | 2.55 | | | | 2.42 | | | | 2.58 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 2.30 | | | | 2.47 | | | | 2.43 | | | | 2.50 | | | | 2.50 | | | | 2.50 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 2.29 | | | | 2.46 | | | | 2.42 | | | | 2.50 | | | | 2.50 | | | | 2.50 | |
Net investment loss after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | (0.54 | ) | | | (0.62 | ) | | | (0.25 | ) | | | (0.19 | ) | | | (0.87 | ) | | | (1.00 | ) |
| Portfolio turnover rate | | % | | | 33 | | | | 66 | | | | 77 | | | | 129 | | | | 101 | | | | 125 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
| |
| † | | In 2005, there was no impact on total return due to payment by affiliate. |
See Accompanying Notes to Financial Statements
77
ING Global Value Choice Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 27.18 | | | | 20.93 | | | | 17.50 | | | | 15.48 | | | | 14.41 | | | | 12.14 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss | | $ | | | (0.06 | ) | | | (0.14 | )* | | | (0.05 | ) | | | (0.04 | ) | | | (0.15 | ) | | | (0.15 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.39 | ) | | | 6.39 | | | | 3.50 | | | | 2.06 | | | | 1.22 | | | | 2.42 | |
| Total from investment operations | | $ | | | (2.45 | ) | | | 6.25 | | | | 3.45 | | | | 2.02 | | | | 1.07 | | | | 2.27 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.02 | | | | — | | | | 0.02 | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 0.02 | | | | — | | | | 0.02 | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 24.71 | | | | 27.18 | | | | 20.93 | | | | 17.50 | | | | 15.48 | | | | 14.41 | |
Total Return(2) | | % | | | (9.02 | ) | | | 29.86 | | | | 19.73 | | | | 13.05 | † | | | 7.43 | | | | 18.70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 34,717 | | | | 39,537 | | | | 31,612 | | | | 30,918 | | | | 35,784 | | | | 45,476 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 2.39 | | | | 2.42 | | | | 2.43 | | | | 2.55 | | | | 2.42 | | | | 2.58 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 2.30 | | | | 2.47 | | | | 2.43 | | | | 2.50 | | | | 2.50 | | | | 2.50 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.29 | | | | 2.46 | | | | 2.42 | | | | 2.50 | | | | 2.50 | | | | 2.50 | |
Net investment loss after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.48 | ) | | | (0.60 | ) | | | (0.26 | ) | | | (0.19 | ) | | | (0.87 | ) | | | (1.01 | ) |
| Portfolio turnover rate | | % | | | 33 | | | | 66 | | | | 77 | | | | 129 | | | | 101 | | | | 125 | |
|
| | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | | | September 6,
|
| | | | | Ended
| | Year Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 28.57 | | | | 21.73 | | | | 21.31 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.09 | * | | | 0.15 | | | | (0.11 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.53 | ) | | | 6.69 | | | | 0.53 | |
| Total from investment operations | | $ | | | (2.44 | ) | | | 6.84 | | | | 0.42 | |
| Less distribution from: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.28 | | | | — | | | | — | |
| Total distributions | | $ | | | 0.28 | | | | — | | | | ��� | |
| Net asset value, end of period | | $ | | | 25.85 | | | | 28.57 | | | | 21.73 | |
Total Return(2) | | % | | | (8.54 | ) | | | 31.48 | | | | 1.97 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 9,175 | | | | 7,845 | | | | 3,010 | |
| Ratio to average net assets: | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.20 | | | | 1.25 | | | | 1.27 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.20 | | | | 1.30 | | | | 1.26 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.19 | | | | 1.29 | | | | 1.26 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 0.70 | | | | 0.67 | | | | (0.69 | ) |
| Portfolio turnover rate | | % | | | 33 | | | | 66 | | | | 77 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
| |
| † | | In 2005, there was no impact on total return due to payment by affiliate. |
See Accompanying Notes to Financial Statements
78
ING Global Value Choice Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class Q |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 33.36 | | | | 25.44 | | | | 21.25 | | | | 18.61 | | | | 17.17 | | | | 14.34 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.05 | | | | 0.08 | * | | | 0.18 | * | | | 0.15 | | | | 0.01 | | | | (0.01 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.94 | ) | | | 7.84 | | | | 4.20 | | | | 2.49 | | | | 1.43 | | | | 2.84 | |
| Total from investment operations | | $ | | | (2.89 | ) | | | 7.92 | | | | 4.38 | | | | 2.64 | | | | 1.44 | | | | 2.83 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.20 | | | | — | | | | 0.19 | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 0.20 | | | | — | | | | 0.19 | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 30.27 | | | | 33.36 | | | | 25.44 | | | | 21.25 | | | | 18.61 | | | | 17.17 | |
Total Return(1) | | % | | | (8.65 | ) | | | 31.13 | | | | 20.75 | | | | 14.19 | † | | | 8.39 | | | | 19.74 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 2,197 | | | | 2,652 | | | | 2,757 | | | | 4,387 | | | | 4,223 | | | | 6,454 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 1.45 | | | | 1.50 | | | | 1.52 | | | | 1.60 | | | | 1.51 | | | | 1.62 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 1.45 | | | | 1.55 | | | | 1.52 | | | | 1.55 | | | | 1.59 | | | | 1.54 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 1.44 | | | | 1.54 | | | | 1.51 | | | | 1.55 | | | | 1.59 | | | | 1.54 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 0.36 | | | | 0.29 | | | | 0.75 | | | | 0.75 | | | | 0.05 | | | | (0.04 | ) |
| Portfolio turnover rate | | % | | | 33 | | | | 66 | | | | 77 | | | | 129 | | | | 101 | | | | 125 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
| |
| † | | In 2005, there was no impact on total return due to payment by affiliate. |
See Accompanying Notes to Financial Statements
79
ING Asia-Pacific Real Estate Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B | | Class C | | Class I |
| | | | | November 1,
| | November 1,
| | November 1,
| | November 1,
|
| | | | | 2007(1) to
| | 2007(1) to
| | 2007(1) to
| | 2007(1) to
|
| | | | | April 30,
| | April 30,
| | April 30,
| | April 30,
|
| | | | | 2008 | | 2008 | | 2008 | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.00 | | | | 10.00 | | | | 10.00 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.04 | | | | 0.04 | * | | | 0.02 | | | | 0.05 | |
| Net realized and unrealized loss on investments | | $ | | | (1.99 | ) | | | (2.02 | ) | | | (1.99 | ) | | | (2.00 | ) |
| Total from investment operations | | $ | | | (1.95 | ) | | | (1.98 | ) | | | (1.97 | ) | | | (1.95 | ) |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.05 | | | | 0.04 | | | | 0.04 | | | | 0.06 | |
| Total distributions | | $ | | | 0.05 | | | | 0.04 | | | | 0.04 | | | | 0.06 | |
| Net asset value, end of period | | $ | | | 8.00 | | | | 7.98 | | | | 7.99 | | | | 7.99 | |
Total Return(2) | | % | | | (19.47 | ) | | | (19.79 | ) | | | (19.75 | ) | | | (19.48 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 4,837 | | | | 25 | | | | 125 | | | | 1 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 4.22 | | | | 4.97 | | | | 4.97 | | | | 3.96 | |
Net expenses after expense waiver(3)(4) | | % | | | 1.75 | | | | 2.50 | | | | 2.50 | | | | 1.50 | |
Net investment income after expense waiver(3)(4) | | % | | | 1.07 | | | | 0.95 | | | | 0.36 | | | | 1.11 | |
| Portfolio turnover rate | | % | | | 46 | | | | 46 | | | | 46 | | | | 46 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expense, (excluding interest, taxes, brokerage and extraordinary expense) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
80
ING Disciplined International SmallCap Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | December 20,
| | Six Months
| | December 20,
|
| | | | | Ended
| | 2006(1) to
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 12.09 | | | | 10.00 | | | | 12.02 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.09 | * | | | 0.14 | * | | | 0.04 | * | | | 0.06 | * |
| Net realized and unrealized gain (loss) on investments | | $ | | | (1.96 | ) | | | 1.95 | | | | (1.94 | ) | | | 1.96 | |
| Total from investment operations | | $ | | | (1.87 | ) | | | 2.09 | | | | (1.90 | ) | | | 2.02 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.06 | | | | — | | | | 0.01 | | | | — | |
| Net realized gains on investments | | $ | | | 0.19 | | | | — | | | | 0.19 | | | | — | |
| Total distributions | | $ | | | 0.25 | | | | — | | | | 0.20 | | | | — | |
| Net asset value, end of period | | $ | | | 9.97 | | | | 12.09 | | | | 9.92 | | | | 12.02 | |
Total Return(2) | | % | | | (15.52 | ) | | | 20.90 | | | | (15.87 | ) | | | 20.20 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 109 | | | | 69 | | | | 5 | | | | 5 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Expenses(3) | | % | | | 1.07 | | | | 1.11 | | | | 1.82 | | | | 1.86 | |
Net investment income(3) | | % | | | 1.73 | | | | 1.37 | | | | 0.77 | | | | 0.67 | |
| Portfolio turnover rate | | % | | | 55 | | | | 116 | | | | 55 | | | | 116 | |
|
| | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | December 20,
| | Six Months
| | December 20,
|
| | | | | Ended
| | 2006(1) to
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 12.02 | | | | 10.00 | | | | 12.13 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.01 | )* | | | 0.02 | * | | | 0.10 | | | | 0.13 | * |
| Net realized and unrealized gain (loss) on investments | | $ | | | (1.89 | ) | | | 2.00 | | | | (1.97 | ) | | | 2.00 | |
| Total from investment operations | | $ | | | (1.90 | ) | | | 2.02 | | | | (1.87 | ) | | | 2.13 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.01 | | | | — | | | | 0.07 | | | | — | |
| Net realized gains on investments | | $ | | | 0.19 | | | | — | | | | 0.19 | | | | — | |
| Total distributions | | $ | | | 0.20 | | | | — | | | | 0.26 | | | | — | |
| Net asset value, end of period | | $ | | | 9.92 | | | | 12.02 | | | | 10.00 | | | | 12.13 | |
Total Return(2) | | % | | | (15.87 | ) | | | 20.20 | | | | (15.44 | ) | | | 21.30 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 8 | | | | 55 | | | | 365,868 | | | | 465,657 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Expenses(3) | | % | | | 1.82 | | | | 1.86 | | | | 0.82 | | | | 0.86 | |
Net investment income (loss)(3) | | % | | | (0.17 | ) | | | 0.25 | | | | 1.78 | | | | 1.29 | |
| Portfolio turnover rate | | % | | | 55 | | | | 116 | | | | 55 | | | | 116 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
81
ING Emerging Countries Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 41.48 | | | | 29.62 | | | | 23.60 | | | | 19.40 | | | | 17.32 | | | | 12.44 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.40 | | | | 0.47 | | | | 0.48 | | | | 0.19 | | | | 0.09 | | | | 0.03 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian tax) | | $ | | | (3.28 | ) | | | 11.82 | | | | 5.68 | | | | 3.98 | | | | 2.08 | | | | 4.85 | |
| Total from investment operations | | $ | | | (2.88 | ) | | | 12.29 | | | | 6.16 | | | | 4.17 | | | | 2.17 | | | | 4.88 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.45 | | | | 0.43 | | | | 0.14 | | | | 0.02 | | | | 0.09 | | | | — | |
| Net realized gains on investments | | $ | | | 1.11 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 1.56 | | | | 0.43 | | | | 0.14 | | | | 0.02 | | | | 0.09 | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.05 | | | | 0.00 | ** | | | — | |
| Net asset value, end of period | | $ | | | 37.04 | | | | 41.48 | | | | 29.62 | | | | 23.60 | | | | 19.40 | | | | 17.32 | |
Total Return(1) | | % | | | (6.76 | ) | | | 41.93 | | | | 26.19 | | | | 21.76 | †† | | | 12.58 | † | | | 39.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 172,256 | | | | 197,307 | | | | 123,219 | | | | 87,143 | | | | 67,282 | | | | 71,953 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 2.03 | | | | 1.99 | | | | 2.02 | | | | 2.09 | | | | 2.10 | | | | 2.37 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 1.93 | | | | 1.89 | | | | 1.92 | | | | 2.00 | | | | 2.20 | | | | 2.27 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 1.90 | | | | 1.86 | | | | 1.91 | | | | 2.00 | | | | 2.20 | | | | 2.27 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 2.13 | | | | 1.42 | | | | 1.80 | | | | 0.91 | | | | 0.41 | | | | 0.22 | |
| Portfolio turnover rate | | % | | | 17 | | | | 51 | | | | 35 | | | | 124 | | | | 88 | | | | 135 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
| |
| † | | In 2004, 0.06% of the total return consists of a gain on the disposition of an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 12.52% and 11.72% for Class A and Class B, respectively. |
| |
| †† | | In 2005, 0.26% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.50% and 20.61% for Class A and Class B, respectively. |
See Accompanying Notes to Financial Statements
82
ING Emerging Countries Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 40.67 | | | | 29.04 | | | | 23.17 | | | | 19.17 | | | | 17.15 | | | | 12.39 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.28 | | | | 0.24 | * | | | 0.28 | * | | | 0.04 | | | | (0.04 | ) | | | (0.06 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian tax) | | $ | | | (3.24 | ) | | | 11.57 | | | | 5.59 | | | | 3.91 | | | | 2.06 | | | | 4.82 | |
| Total from investment operations | | $ | | | (2.96 | ) | | | 11.81 | | | | 5.87 | | | | 3.95 | | | | 2.02 | | | | 4.76 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.14 | | | | 0.18 | | | | — | | | | — | | | | — | | | | — | |
| Net realized gains on investments | | $ | | | 1.11 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 1.25 | | | | 0.18 | | | | — | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.05 | | | | 0.00 | ** | | | — | |
| Net asset value, end of period | | $ | | | 36.46 | | | | 40.67 | | | | 29.04 | | | | 23.17 | | | | 19.17 | | | | 17.15 | |
Total Return(1) | | % | | | (7.13 | ) | | | 40.85 | | | | 25.33 | | | | 20.87 | †† | | | 11.78 | † | | | 38.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 13,623 | | | | 16,648 | | | | 13,575 | | | | 12,562 | | | | 12,581 | | | | 16,425 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(2) | | % | | | 2.68 | | | | 2.64 | | | | 2.67 | | | | 2.74 | | | | 2.75 | | | | 3.02 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(2)(3) | | % | | | 2.68 | | | | 2.64 | | | | 2.67 | | | | 2.74 | | | | 2.85 | | | | 2.92 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 2.65 | | | | 2.61 | | | | 2.66 | | | | 2.74 | | | | 2.85 | | | | 2.92 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(2)(3) | | % | | | 1.36 | | | | 0.67 | | | | 1.06 | | | | 0.14 | | | | (0.30 | ) | | | (0.40 | ) |
| Portfolio turnover rate | | % | | | 17 | | | | 51 | | | | 35 | | | | 124 | | | | 88 | | | | 135 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
| |
| † | | In 2004, 0.06% of the total return consists of a gain on the disposition of an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 12.52% and 11.72% for Class A and Class B, respectively. |
| |
| †† | | In 2005, 0.26% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.50% and 20.61% for Class A and Class B, respectively. |
See Accompanying Notes to Financial Statements
83
ING Emerging Countries Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 38.45 | | | | 27.53 | | | | 22.04 | | | | 18.24 | | | | 16.32 | | | | 11.79 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.25 | | | | 0.20 | | | | 0.25 | | | | 0.03 | | | | (0.03 | ) | | | (0.06 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian tax) | | $ | | | (3.04 | ) | | | 10.97 | | | | 5.31 | | | | 3.72 | | | | 1.95 | | | | 4.59 | |
| Total from investment operations | | $ | | | (2.79 | ) | | | 11.17 | | | | 5.56 | | | | 3.75 | | | | 1.92 | | | | 4.53 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.21 | | | | 0.25 | | | | 0.07 | | | | — | | | | — | | | | — | |
| Net realized gains on investments | | $ | | | 1.11 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 1.32 | | | | 0.25 | | | | 0.07 | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.05 | | | | 0.00 | * | | | — | |
| Net asset value, end of period | | $ | | | 34.34 | | | | 38.45 | | | | 27.53 | | | | 22.04 | | | | 18.24 | | | | 16.32 | |
Total Return(2) | | % | | | (7.09 | ) | | | 40.82 | | | | 25.29 | | | | 20.83 | †† | | | 11.76 | † | | | 38.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 46,298 | | | | 53,885 | | | | 35,847 | | | | 20,985 | | | | 9,680 | | | | 10,033 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 2.68 | | | | 2.64 | | | | 2.67 | | | | 2.74 | | | | 2.75 | | | | 3.02 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 2.68 | | | | 2.64 | | | | 2.67 | | | | 2.74 | | | | 2.85 | | | | 2.92 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.65 | | | | 2.61 | | | | 2.66 | | | | 2.74 | | | | 2.85 | | | | 2.92 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.38 | | | | 0.65 | | | | 1.12 | | | | 0.25 | | | | (0.20 | ) | | | (0.40 | ) |
| Portfolio turnover rate | | % | | | 17 | | | | 51 | | | | 35 | | | | 124 | | | | 88 | | | | 135 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Amount is less than $0.005. |
| |
| † | | In 2004, 0.06% of the total return consists of a gain on an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 11.70%. |
| |
| †† | | In 2005, 0.27% of the total return on Class C consists of a payment by affiliate. Excluding this item, total return would have been 20.56%. |
See Accompanying Notes to Financial Statements
84
ING Emerging Countries Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 41.63 | | | | 29.72 | | | | 25.52 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.39 | * | | | 0.55 | | | | 0.65 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian tax) | | $ | | | (3.23 | ) | | | 11.90 | | | | 3.55 | |
| Total from investment operations | | $ | | | (2.84 | ) | | | 12.45 | | | | 4.20 | |
| Less distribution from: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.57 | | | | 0.54 | | | | — | |
| Net realized gains on investments | | $ | | | 1.11 | | | | — | | | | — | |
| Total distributions | | $ | | | 1.68 | | | | 0.54 | | | | — | |
| Net asset value, end of period | | $ | | | 37.11 | | | | 41.63 | | | | 29.72 | |
Total Return(2) | | % | | | (6.62 | ) | | | 42.41 | | | | 16.46 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 31,030 | | | | 41,551 | | | | 23,456 | |
| Ratio to average net assets: | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.60 | | | | 1.56 | | | | 1.55 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.60 | | | | 1.56 | | | | 1.55 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.57 | | | | 1.53 | | | | 1.54 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.10 | | | | 1.71 | | | | 2.73 | |
| Portfolio turnover rate | | % | | | 17 | | | | 51 | | | | 35 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | In 2004, 0.06% of the total return consists of a gain on an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 11.70%. |
| |
| †† | | In 2005, 0.27% of the total return on Class C consists of a payment by affiliate. Excluding this item, total return would have been 20.56%. |
See Accompanying Notes to Financial Statements
85
ING Emerging Countries Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class Q | | Class W |
| | | | | Six Months
| | | | | | | | | | | | February 12,
|
| | | | | Ended
| | | | | | | | | | | | 2008(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | April 30,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 42.92 | | | | 30.62 | | | | 24.38 | | | | 20.03 | | | | 17.89 | | | | 12.80 | | | | 36.18 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.41 | | | | 0.44 | | | | 0.59 | * | | | 0.26 | | | | 0.09 | | | | 0.12 | | | | 0.54 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian tax) | | $ | | | (3.37 | ) | | | 12.31 | | | | 5.81 | | | | 4.07 | | | | 2.17 | | | | 4.97 | | | | 2.09 | |
| Total from investment operations | | $ | | | (2.96 | ) | | | 12.75 | | | | 6.40 | | | | 4.33 | | | | 2.26 | | | | 5.09 | | | | 2.63 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.49 | | | | 0.45 | | | | 0.16 | | | | 0.03 | | | | 0.12 | | | | — | | | | — | |
| Net realized gains on investments | | $ | | | 1.11 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 1.60 | | | | 0.45 | | | | 0.16 | | | | 0.03 | | | | 0.12 | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.05 | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 38.36 | | | | 42.92 | | | | 30.62 | | | | 24.38 | | | | 20.03 | | | | 17.89 | | | | 38.81 | |
Total Return(2) | | % | | | (6.72 | ) | | | 42.05 | | | | 26.37 | | | | 21.89 | †† | | | 12.70 | † | | | 39.77 | | | | 7.27 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 17,773 | | | | 21,253 | | | | 10,700 | | | | 10,776 | | | | 8,929 | | | | 18,168 | | | | 78 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.86 | | | | 1.81 | | | | 1.80 | | | | 1.85 | | | | 2.00 | | | | 2.03 | | | | 1.57 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.86 | | | | 1.81 | | | | 1.80 | | | | 1.85 | | | | 2.10 | | | | 1.93 | | | | 1.57 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.83 | | | | 1.78 | | | | 1.79 | | | | 1.85 | | | | 2.10 | | | | 1.93 | | | | 1.54 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.17 | | | | 1.49 | | | | 2.09 | | | | 1.12 | | | | 0.36 | | | | 0.59 | | | | 6.71 | |
| Portfolio turnover rate | | % | | | 17 | | | | 51 | | | | 35 | | | | 124 | | | | 88 | | | | 135 | | | | 17 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sale changes. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| �� |
| ** | | Amount is less than $0.005. |
| |
| † | | In 2004, 0.06% of the total return consists of a gain on an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 12.64%. |
| |
| †† | | In 2005, 0.25% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.64%. |
See Accompanying Notes to Financial Statements
86
ING European Real Estate Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B | | Class C | | Class I |
| | | | | November 1,
| | November 1,
| | November 1,
| | November 1,
|
| | | | | 2007(1) to
| | 2007(1) to
| | 2007(1) to
| | 2007(1) to
|
| | | | | April 30,
| | April 30,
| | April 30,
| | April 30,
|
| | | | | 2008 | | 2008 | | 2008 | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.00 | | | | 10.00 | | | | 10.00 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.06 | | | | 0.14 | * | | | 0.06 | * | | | 0.07 | |
| Net realized and unrealized loss on investments | | $ | | | (0.62 | ) | | | (0.74 | ) | | | (0.66 | ) | | | (0.61 | ) |
| Total from investment operations | | $ | | | (0.56 | ) | | | (0.60 | ) | | | (0.60 | ) | | | (0.54 | ) |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.03 | | | | 0.00 | ** | | | 0.02 | | | | 0.04 | |
| Total distributions | | $ | | | 0.03 | | | | 0.00 | ** | | | 0.02 | | | | 0.04 | |
| Net asset value, end of period | | $ | | | 9.41 | | | | 9.40 | | | | 9.38 | | | | 9.42 | |
Total Return(2) | | % | | | (5.57 | ) | | | (5.95 | ) | | | (6.02 | ) | | | (5.38 | ) |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 6,013 | | | | 12 | | | | 134 | | | | 1 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 3.69 | | | | 4.44 | | | | 4.44 | | | | 3.44 | |
Net expenses after expense waiver(3)(4) | | % | | | 1.75 | | | | 2.50 | | | | 2.50 | | | | 1.50 | |
Net investment income after expense waiver(3)(4) | | % | | | 1.49 | | | | 2.99 | | | | 1.43 | | | | 1.53 | |
| Portfolio turnover rate | | % | | | 83 | | | | 83 | | | | 83 | | | | 83 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expense, (excluding interest, taxes, brokerage and extraordinary expense) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
87
ING Foreign Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | July 1,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 23.54 | | | | 18.56 | | | | 14.79 | | | | 12.38 | | | | 11.01 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.01 | )* | | | 0.10 | | | | 0.08 | * | | | 0.06 | | | | 0.11 | | | | (0.00 | )** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.32 | ) | | | 5.56 | | | | 4.05 | | | | 2.35 | | | | 1.44 | | | | 1.01 | |
| Total from investment operations | | $ | | | (2.33 | ) | | | 5.66 | | | | 4.13 | | | | 2.41 | | | | 1.55 | | | | 1.01 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.04 | | | | — | |
| Return of capital | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.04 | | | | — | |
| Total distributions | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.18 | | | | — | |
| Net asset value, end of period | | $ | | | 19.82 | | | | 23.54 | | | | 18.56 | | | | 14.79 | | | | 12.38 | | | | 11.01 | |
Total Return(2) | | % | | | (10.08 | ) | | | 31.32 | | | | 28.39 | | | | 19.47 | | | | 14.25 | | | | 10.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 329,490 | | | | 349,917 | | | | 219,819 | | | | 122,883 | | | | 62,949 | | | | 6,598 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.57 | | | | 1.54 | | | | 1.58 | | | | 1.66 | | | | 1.95 | | | | 6.03 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.56 | | | | 1.54 | | | | 1.65 | | | | 1.68 | | | | 1.70 | | | | 1.95 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.56 | | | | 1.54 | | | | 1.65 | | | | 1.68 | | | | 1.70 | | | | 1.95 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.09 | ) | | | 0.59 | | | | 0.49 | | | | 0.53 | | | | 0.37 | | | | (0.32 | ) |
| Portfolio turnover rate | | % | | | 34 | | | | 69 | | | | 65 | | | | 81 | | | | 141 | | | | 50 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is more than $(0.005). |
See Accompanying Notes to Financial Statements
88
ING Foreign Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | July 8,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 22.78 | | | | 18.11 | | | | 14.55 | | | | 12.26 | | | | 10.99 | | | | 10.29 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss | | $ | | | (0.08 | ) | | | (0.03 | ) | | | (0.04 | )* | | | (0.03 | ) | | | (0.05 | )* | | | (0.01 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.26 | ) | | | 5.38 | | | | 3.96 | | | | 2.32 | | | | 1.49 | | | | 0.71 | |
| Total from investment operations | | $ | | | (2.34 | ) | | | 5.35 | | | | 3.92 | | | | 2.29 | | | | 1.44 | | | | 0.70 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.03 | | | | — | |
| Return of capital | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.04 | | | | — | |
| Total distributions | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.17 | | | | — | |
| Net asset value, end of period | | $ | | | 19.05 | | | | 22.78 | | | | 18.11 | | | | 14.55 | | | | 12.26 | | | | 10.99 | |
Total Return(2) | | % | | | (10.48 | ) | | | 30.35 | | | | 27.40 | | | | 18.68 | | | | 13.32 | | | | 6.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 40,607 | | | | 50,276 | | | | 38,136 | | | | 22,944 | | | | 11,263 | | | | 1,344 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 2.32 | | | | 2.29 | | | | 2.33 | | | | 2.41 | | | | 2.70 | | | | 6.78 | |
Net expenses after expense waiver and prior to brokerage commission recapture(3)(4) | | % | | | 2.31 | | | | 2.29 | | | | 2.40 | | | | 2.43 | | | | 2.45 | | | | 2.70 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.31 | | | | 2.29 | | | | 2.40 | | | | 2.43 | | | | 2.45 | | | | 2.70 | |
Net investment loss after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.87 | ) | | | (0.16 | ) | | | (0.24 | ) | | | (0.23 | ) | | | (0.46 | ) | | | (1.03 | ) |
| Portfolio turnover rate | | % | | | 34 | | | | 69 | | | | 65 | | | | 81 | | | | 141 | | | | 50 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
89
ING Foreign Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | July 7,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 22.81 | | | | 18.14 | | | | 14.57 | | | | 12.28 | | | | 11.01 | | | | 10.27 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss | | $ | | | (0.09 | ) | | | (0.03 | ) | | | (0.04 | )* | | | (0.03 | ) | | | (0.04 | )* | | | (0.01 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.24 | ) | | | 5.38 | | | | 3.97 | | | | 2.32 | | | | 1.48 | | | | 0.75 | |
| Total from investment operations | | $ | | | (2.33 | ) | | | 5.35 | | | | 3.93 | | | | 2.29 | | | | 1.44 | | | | 0.74 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.03 | | | | — | |
| Return of capital | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.04 | | | | — | |
| Total distributions | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.17 | | | | — | |
| Net asset value, end of period | | $ | | | 19.09 | | | | 22.81 | | | | 18.14 | | | | 14.57 | | | | 12.28 | | | | 11.01 | |
Total Return(2) | | % | | | (10.42 | ) | | | 30.30 | | | | 27.43 | | | | 18.65 | | | | 13.28 | | | | 7.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 202,482 | | | | 232,439 | | | | 154,101 | | | | 87,877 | | | | 41,424 | | | | 5,601 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 2.32 | | | | 2.29 | | | | 2.33 | | | | 2.41 | | | | 2.70 | | | | 6.78 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 2.31 | | | | 2.29 | | | | 2.40 | | | | 2.43 | | | | 2.45 | | | | 2.70 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.31 | | | | 2.29 | | | | 2.40 | | | | 2.43 | | | | 2.45 | | | | 2.70 | |
Net investment loss after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.85 | ) | | | (0.14 | ) | | | (0.26 | ) | | | (0.27 | ) | | | (0.41 | ) | | | (1.03 | ) |
| Portfolio turnover rate | | % | | | 34 | | | | 69 | | | | 65 | | | | 81 | | | | 141 | | | | 50 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
90
ING Foreign Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | | | | | | | | | September 8,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 23.91 | | | | 18.78 | | | | 14.93 | | | | 12.45 | | | | 11.05 | | | | 10.63 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.02 | * | | | 0.16 | | | | 0.13 | * | | | 0.34 | | | | 0.19 | | | | 0.00 | ** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.35 | ) | | | 5.65 | | | | 4.08 | | | | 2.14 | | | | 1.39 | | | | 0.42 | |
| Total from investment operations | | $ | | | (2.33 | ) | | | 5.81 | | | | 4.21 | | | | 2.48 | | | | 1.58 | | | | 0.42 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.04 | | | | — | |
| Return of capital | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.04 | | | | — | |
| Total distributions | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.18 | | | | — | |
| Net asset value, end of period | | $ | | | 20.19 | | | | 23.91 | | | | 18.78 | | | | 14.93 | | | | 12.45 | | | | 11.05 | |
Total Return(2) | | % | | | (9.92 | ) | | | 31.76 | | | | 28.67 | | | | 19.92 | | | | 14.53 | | | | 3.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 111,681 | | | | 108,732 | | | | 61,248 | | | | 1,049 | | | | 2,547 | | | | 188 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.25 | | | | 1.21 | | | | 1.28 | | | | 1.34 | | | | 1.50 | | | | 5.51 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.24 | | | | 1.21 | | | | 1.35 | | | | 1.35 | | | | 1.25 | | | | 1.43 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.24 | | | | 1.21 | | | | 1.34 | | | | 1.35 | | | | 1.25 | | | | 1.43 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 0.24 | | | | 0.94 | | | | 0.78 | | | | 0.97 | | | | 1.58 | | | | 0.21 | |
| Portfolio turnover rate | | % | | | 34 | | | | 69 | | | | 65 | | | | 81 | | | | 141 | | | | 50 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
91
ING Foreign Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class Q |
| | | | | Six Months
| | | | | | | | | | July 10,
|
| | | | | Ended
| | | | | | | | | | 2003(1) to
|
| | | | | April 30,
| | Year Ended October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 23.63 | | | | 18.61 | | | | 14.82 | | | | 12.40 | | | | 11.02 | | | | 10.13 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.00 | )** | | | 0.17 | * | | | 0.07 | * | | | 0.08 | | | | 0.09 | | | | (0.00 | )** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.33 | ) | | | 5.53 | | | | 4.08 | | | | 2.34 | | | | 1.46 | | | | 0.89 | |
| Total from investment operations | | $ | | | (2.33 | ) | | | 5.70 | | | | 4.15 | | | | 2.42 | | | | 1.55 | | | | 0.89 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.03 | | | | — | |
| Return of capital | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.04 | | | | — | |
| Total distributions | | $ | | | 1.39 | | | | 0.68 | | | | 0.36 | | | | — | | | | 0.17 | | | | — | |
| Net asset value, end of period | | $ | | | 19.91 | | | | 23.63 | | | | 18.61 | | | | 14.82 | | | | 12.40 | | | | 11.02 | |
Total Return(2) | | % | | | (10.04 | ) | | | 31.45 | | | | 28.47 | | | | 19.52 | | | | 14.28 | | | | 8.79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 707 | | | | 856 | | | | 1,196 | | | | 1,079 | | | | 1,054 | | | | 421 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.50 | | | | 1.45 | | | | 1.53 | | | | 1.59 | | | | 1.85 | | | | 5.93 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.49 | | | | 1.45 | | | | 1.60 | | | | 1.60 | | | | 1.60 | | | | 1.85 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.49 | | | | 1.45 | | | | 1.60 | | | | 1.60 | | | | 1.60 | | | | 1.85 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.05 | ) | | | 0.82 | | | | 0.43 | | | | 0.53 | | | | 0.34 | | | | (0.17 | ) |
| Portfolio turnover rate | | % | | | 34 | | | | 69 | | | | 65 | | | | 81 | | | | 141 | | | | 50 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is more than $(0.005). |
See Accompanying Notes to Financial Statements
92
ING Foreign Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the period.
| | | | | | | |
| | | | | Class W |
| | | | | February 12,
|
| | | | | 2008(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 20.48 | |
| Income from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.06 | * |
| Net realized and unrealized gain on investments and foreign currency related transactions | | $ | | | 0.98 | |
| Total from investment operations | | $ | | | 1.04 | |
| Net asset value, end of period | | $ | | | 21.52 | |
Total Return(2) | | % | | | 5.08 | |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 83 | |
| Ratios to average net assets: | | | | | | |
Gross expenses prior to expense waiver(3)(4) | | % | | | 1.24 | |
Net expenses after expense waiver(3)(4) | | % | | | 1.23 | |
Net investment income after expense waiver(3)(4) | | % | | | 1.43 | |
| Portfolio turnover rate | | % | | | 34 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
93
ING Greater China Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | December 21,
| | Six Months
| | Year
| | January 6,
|
| | | | | Ended
| | Ended
| | 2005(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 24.43 | | | | 12.49 | | | | 10.00 | | | | 24.14 | | | | 12.42 | | | | 10.60 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.11 | ) | | | 0.07 | | | | 0.06 | | | | (0.16 | ) | | | (0.03 | )* | | | 0.05 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (4.39 | ) | | | 11.93 | | | | 2.43 | | | | (4.34 | ) | | | 11.79 | | | | 1.77 | |
| Total from investment operations | | $ | | | (4.50 | ) | | | 12.00 | | | | 2.49 | | | | (4.50 | ) | | | 11.76 | | | | 1.82 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.06 | | | | 0.06 | | | | — | | | | — | | | | 0.04 | | | | — | |
| Net realized gains on investments | | $ | | | 2.06 | | | | 0.00 | ** | | | — | | | | 2.06 | | | | 0.00 | ** | | | — | |
| Total distributions | | $ | | | 2.12 | | | | 0.06 | | | | — | | | | 2.06 | | | | 0.04 | | | | — | |
| Net asset value, end of period | | $ | | | 17.81 | | | | 24.43 | | | | 12.49 | | | | 17.58 | | | | 24.14 | | | | 12.42 | |
Total Return(2) | | % | | | (18.32 | ) | | | 96.41 | | | | 24.90 | | | | (18.59 | ) | | | 94.92 | | | | 17.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 50,061 | | | | 73,804 | | | | 23,709 | | | | 5,561 | | | | 7,414 | | | | 1,957 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses(3) | | % | | | 1.87 | | | | 1.91 | | | | 2.64 | | | | 2.62 | | | | 2.66 | | | | 3.39 | |
Net investment income (loss)(3) | | % | | | (1.10 | ) | | | 0.54 | | | | 0.75 | | | | (1.83 | ) | | | (0.19 | ) | | | 0.47 | |
| Portfolio turnover rate | | % | | | 81 | | | | 109 | | | | 108 | | | | 81 | | | | 109 | | | | 108 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | January 11,
| | Six Months
| | Year
| | May 8,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 24.16 | | | | 12.43 | | | | 10.67 | | | | 24.46 | | | | 12.50 | | | | 12.84 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.17 | )* | | | (0.03 | )* | | | 0.05 | * | | | (0.07 | )* | | | 0.11 | | | | 0.08 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (4.34 | ) | | | 11.79 | | | | 1.71 | | | | (4.40 | ) | | | 11.93 | | | | (0.42 | ) |
| Total from investment operations | | $ | | | (4.51 | ) | | | 11.76 | | | | 1.76 | | | | (4.47 | ) | | | 12.04 | | | | (0.34 | ) |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | 0.03 | | | | — | | | | 0.10 | | | | 0.08 | | | | — | |
| Net realized gains on investments | | $ | | | 2.06 | | | | 0.00 | ** | | | — | | | | 2.06 | | | | 0.00 | ** | | | — | |
| Total distributions | | $ | | | 2.06 | | | | 0.03 | | | | — | | | | 2.16 | | | | 0.08 | | | | — | |
| Net asset value, end of period | | $ | | | 17.59 | | | | 24.16 | | | | 12.43 | | | | 17.83 | | | | 24.46 | | | | 12.50 | |
Total Return(2) | | % | | | (18.62 | ) | | | 94.75 | | | | 16.49 | | | | (18.18 | ) | | | 96.81 | | | | (2.65 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 7,033 | | | | 12,386 | | | | 2,124 | | | | 55 | | | | 52 | | | | 22 | |
| Ratios to average net assets: | | | | | | | | | | �� | | | | | | | | | | | | | | | | |
Expenses(3) | | % | | | 2.62 | | | | 2.66 | | | | 3.39 | | | | 1.62 | | | | 1.66 | | | | 2.39 | |
Net investment income (loss)(3) | | % | | | (1.86 | ) | | | (0.20 | ) | | | 0.53 | | | | (0.77 | ) | | | 0.73 | | | | 1.47 | |
| Portfolio turnover rate | | % | | | 81 | | | | 109 | | | | 108 | | | | 81 | | | | 109 | | | | 108 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
94
ING Index Plus International Equity Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | December 21,
| | Six Months
| | Year
| | January 12,
|
| | | | | Ended
| | Ended
| | 2005(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 13.95 | | | | 11.68 | | | | 10.00 | | | | 13.90 | | | | 11.63 | | | | 10.43 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.07 | * | | | 0.14 | * | | | 0.14 | * | | | 0.01 | * | | | 0.09 | * | | | 0.06 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.58 | ) | | | 2.48 | | | | 1.54 | | | | (1.56 | ) | | | 2.51 | | | | 1.14 | |
| Total from investment operations | | $ | | | (1.51 | ) | | | 2.62 | | | | 1.68 | | | | (1.55 | ) | | | 2.60 | | | | 1.20 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.08 | | | | — | | | | 0.16 | | | | 0.06 | | | | — | |
| Net realized gains on investments | | $ | | | 1.37 | | | | 0.27 | | | | — | | | | 1.37 | | | | 0.27 | | | | — | |
| Total distributions | | $ | | | 1.55 | | | | 0.35 | | | | — | | | | 1.53 | | | | 0.33 | | | | — | |
| Net asset value, end of period | | $ | | | 10.89 | | | | 13.95 | | | | 11.68 | | | | 10.82 | | | | 13.90 | | | | 11.63 | |
Total Return(2) | | % | | | (11.70 | ) | | | 22.98 | | | | 16.80 | | | | (12.06 | ) | | | 22.85 | | | | 11.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 19,355 | | | | 2,233 | | | | 12,513 | | | | 3,920 | | | | 734 | | | | 264 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 1.48 | | | | 1.13 | | | | 1.30 | | | | 2.23 | | | | 1.89 | | | | 2.05 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.51 | † | | | 1.16 | | | | 1.15 | | | | 2.26 | † | | | 1.92 | | | | 1.90 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 1.38 | | | | 1.17 | | | | 1.50 | | | | 0.62 | | | | 0.67 | | | | 0.64 | |
| Portfolio turnover rate | | % | | | 94 | | | | 213 | | | | 188 | | | | 94 | | | | 213 | | | | 188 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | January 12,
| | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 13.89 | | | | 11.61 | | | | 10.43 | | | | 14.06 | | | | 11.70 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.03 | * | | | 0.09 | * | | | 0.08 | * | | | 0.10 | * | | | 0.20 | | | | 0.16 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.57 | ) | | | 2.50 | | | | 1.10 | | | | (1.60 | ) | | | 2.55 | | | | 1.54 | |
| Total from investment operations | | $ | | | (1.54 | ) | | | 2.59 | | | | 1.18 | | | | (1.50 | ) | | | 2.75 | | | | 1.70 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.16 | | | | 0.04 | | | | — | | | | 0.24 | | | | 0.12 | | | | — | |
| Net realized gains on investments | | $ | | | 1.37 | | | | 0.27 | | | | — | | | | 1.37 | | | | 0.27 | | | | — | |
| Total distributions | | $ | | | 1.53 | | | | 0.31 | | | | — | | | | 1.61 | | | | 0.39 | | | | — | |
| Net asset value, end of period | | $ | | | 10.82 | | | | 13.89 | | | | 11.61 | | | | 10.95 | | | | 14.06 | | | | 11.70 | |
Total Return(2) | | % | | | (11.98 | ) | | | 22.81 | | | | 11.31 | | | | (11.52 | ) | | | 24.14 | | | | 17.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 2,649 | | | | 1,126 | | | | 534 | | | | 169,089 | | | | 118,924 | | | | 78,581 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 2.23 | | | | 1.89 | | | | 2.05 | | | | 1.18 | | | | 0.84 | | | | 1.05 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 2.26 | † | | | 1.92 | | | | 1.90 | | | | 1.21 | † | | | 0.87 | | | | 0.90 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 0.55 | | | | 0.69 | | | | 0.87 | | | | 1.82 | | | | 1.78 | | | | 1.69 | |
| Portfolio turnover rate | | % | | | 94 | | | | 213 | | | | 188 | | | | 94 | | | | 213 | | | | 188 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
See Accompanying Notes to Financial Statements
95
ING Index Plus International Equity Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the period.
| | | | | | | |
| | | | | Class O |
| | | | | November 12,
|
| | | | | 2007(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 13.09 | |
| Income (loss) from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.08 | |
| Net realized and unrealized gain (loss) on investments | | $ | | | (0.73 | ) |
| Total from investment operations | | $ | | | (0.65 | ) |
| Less distributions from: | | | | | | |
| Net investment income | | $ | | | 0.24 | |
| Net realized gains on investments | | $ | | | 1.37 | |
| Total distributions | | $ | | | 1.61 | |
| Net asset value, end of period | | $ | | | 10.83 | |
Total Return(2) | | % | | | (5.88 | ) |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 80,649 | |
| Ratios to average net assets: | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 1.48 | |
Net expenses after expense waiver/recoupment(3) | | % | | | 1.51 | † |
Net investment income after expense waiver/recoupment(3) | | % | | | 1.51 | |
| Portfolio turnover rate | | % | | | 94 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
See Accompanying Notes to Financial Statements
96
ING International Capital Appreciation Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | December 21,
| | Six Months
| | Year
| | January 9,
|
| | | | | Ended
| | Ended
| | 2005(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.86 | | | | 11.39 | | | | 10.00 | | | | 14.67 | | | | 11.33 | | | | 10.42 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.02 | * | | | 0.01 | * | | | 0.04 | | | | (0.03 | ) | | | (0.09 | ) | | | (0.04 | )* |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.52 | ) | | | 3.76 | | | | 1.35 | | | | (1.49 | ) | | | 3.71 | | | | 0.95 | |
| Total from investment operations | | $ | | | (1.50 | ) | | | 3.77 | | | | 1.39 | | | | (1.52 | ) | | | 3.62 | | | | 0.91 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.14 | | | | 0.05 | | | | — | | | | 0.11 | | | | 0.03 | | | | — | |
| Net realized gains on investments | | $ | | | 0.50 | | | | 0.25 | | | | — | | | | 0.50 | | | | 0.25 | | | | — | |
| Total distributions | | $ | | | 0.64 | | | | 0.30 | | | | — | | | | 0.61 | | | | 0.28 | | | | — | |
| Net asset value, end of period | | $ | | | 12.72 | | | | 14.86 | | | | 11.39 | | | | 12.54 | | | | 14.67 | | | | 11.33 | |
Total Return(2) | | % | | | (10.18 | ) | | | 33.89 | | | | 13.90 | | | | (10.46 | ) | | | 32.67 | | | | 8.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 4,855 | | | | 4,592 | | | | 3,677 | | | | 813 | | | | 943 | | | | 66 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.41 | | | | 1.48 | | | | 1.84 | | | | 2.16 | | | | 2.23 | | | | 2.59 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.50 | | | | 1.50 | | | | 1.50 | | | | 2.25 | | | | 2.25 | | | | 2.25 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.50 | | | | 1.50 | | | | 1.50 | | | | 2.25 | | | | 2.25 | | | | 2.25 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 0.35 | | | | 0.08 | | | | 0.32 | | | | (0.53 | ) | | | (0.88 | ) | | | (0.43 | ) |
| Portfolio turnover rate | | % | | | 29 | | | | 71 | | | | 91 | | | | 29 | | | | 71 | | | | 91 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | January 24,
| | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.71 | | | | 11.35 | | | | 10.28 | | | | 14.90 | | | | 11.43 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.02 | )* | | | (0.12 | ) | | | (0.03 | ) | | | 0.04 | * | | | 0.06 | * | | | 0.02 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.51 | ) | | | 3.73 | | | | 1.10 | | | | (1.52 | ) | | | 3.75 | | | | 1.41 | |
| Total from investment operations | | $ | | | (1.53 | ) | | | 3.61 | | | | 1.07 | | | | (1.48 | ) | | | 3.81 | | | | 1.43 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.11 | | | | 0.00 | ** | | | — | | | | 0.17 | | | | 0.09 | | | | — | |
| Net realized gains on investments | | $ | | | 0.50 | | | | 0.25 | | | | — | | | | 0.50 | | | | 0.25 | | | | — | |
| Total distributions | | $ | | | 0.61 | | | | 0.25 | | | | — | | | | 0.67 | | | | 0.34 | | | | — | |
| Net asset value, end of period | | $ | | | 12.57 | | | | 14.71 | | | | 11.35 | | | | 12.75 | | | | 14.90 | | | | 11.43 | |
Total Return(2) | | % | | | (10.47 | ) | | | 32.45 | | | | 10.41 | | | | (9.97 | ) | | | 34.14 | | | | 14.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 1,147 | | | | 971 | | | | 65 | | | | 139,669 | | | | 140,901 | | | | 47,200 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/
recoupment and brokerage commission recapture(3) | | % | | | 2.16 | | | | 2.23 | | | | 2.59 | | | | 1.07 | | | | 1.13 | | | | 1.56 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 2.25 | | | | 2.25 | | | | 2.25 | | | | 1.16 | | | | 1.15 | | | | 1.22 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.25 | | | | 2.25 | | | | 2.25 | | | | 1.16 | | | | 1.15 | | | | 1.22 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.32 | ) | | | (0.97 | ) | | | (0.50 | ) | | | 0.69 | | | | 0.47 | | | | 0.39 | |
| Portfolio turnover rate | | % | | | 29 | | | | 71 | | | | 91 | | | | 29 | | | | 71 | | | | 91 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| * | | Calculated using average number of shares outstanding throughout the period. |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
97
ING International Equity Dividend Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | June 28,
| | Six Months
| | June 28,
|
| | | | | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.57 | | | | 10.00 | | | | 10.55 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.15 | | | | 0.06 | * | | | 0.13 | * | | | 0.03 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.14 | ) | | | 0.51 | | | | (1.16 | ) | | | 0.52 | |
| Total from investment operations | | $ | | | (0.99 | ) | | | 0.57 | | | | (1.03 | ) | | | 0.55 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.15 | | | | — | | | | 0.11 | | | | — | |
| Net realized gains on investments | | $ | | | 0.04 | | | | — | | | | 0.04 | | | | — | |
| Total distributions | | $ | | | 0.19 | | | | — | | | | 0.15 | | | | — | |
| Net asset value, end of period | | $ | | | 9.39 | | | | 10.57 | | | | 9.37 | | | | 10.55 | |
Total Return(2) | | % | | | (9.49 | ) | | | 5.70 | | | | (9.85 | ) | | | 5.50 | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 3,661 | | | | 4,122 | | | | 299 | | | | 239 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 1.57 | | | | 1.64 | | | | 2.32 | | | | 2.39 | |
Net expenses after expense waiver(3)(4) | | % | | | 1.40 | | | | 1.40 | | | | 2.15 | | | | 2.15 | |
Net investment income after expense waiver(3)(4) | | % | | | 3.25 | | | | 1.81 | | | | 2.74 | | | | 1.09 | |
| Portfolio turnover rate | | % | | | 16 | | | | 7 | | | | 16 | | | | 7 | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I | | Class W |
| | | | | Six Months
| | June 28,
| | Six Months
| | June 28,
| | February 12,
|
| | | | | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
| | 2008(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
|
| | | | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.55 | | | | 10.00 | | | | 10.58 | | | | 10.00 | | | | 8.86 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.11 | * | | | 0.03 | * | | | 0.17 | | | | 0.07 | * | | | 0.15 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.13 | ) | | | 0.52 | | | | (1.16 | ) | | | 0.51 | | | | 0.47 | |
| Total from investment operations | | $ | | | (1.02 | ) | | | 0.55 | | | | (0.99 | ) | | | 0.58 | | | | 0.62 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.12 | | | | — | | | | 0.16 | | | | — | | | | 0.07 | |
| Net realized gains on investments | | $ | | | 0.04 | | | | — | | | | 0.04 | | | | — | | | | — | |
| Total distributions | | $ | | | 0.16 | | | | — | | | | 0.20 | | | | — | | | | 0.07 | |
| Net asset value, end of period | | $ | | | 9.37 | | | | 10.55 | | | | 9.39 | | | | 10.58 | | | | 9.41 | |
Total Return(2) | | % | | | (9.83 | ) | | | 5.50 | | | | (9.30 | ) | | | 5.80 | | | | 7.05 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 1,554 | | | | 1,334 | | | | 48,266 | | | | 55,611 | | | | 1 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 2.32 | | | | 2.39 | | | | 1.32 | | | | 1.39 | | | | 1.17 | |
Net expenses after expense waiver(3)(4) | | % | | | 2.15 | | | | 2.15 | | | | 1.15 | | | | 1.15 | | | | 1.00 | |
Net investment income after expense waiver(3)(4) | | % | | | 2.47 | | | | 1.08 | | | | 3.49 | | | | 1.95 | | | | 7.71 | |
| Portfolio turnover rate | | % | | | 16 | | | | 7 | | | | 16 | | | | 7 | | | | 16 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
98
ING International Growth Opportunities Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 15.61 | | | | 13.20 | | | | 10.97 | | | | 9.78 | | | | 8.48 | | | | 7.05 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.03 | | | | 0.03 | | | | 0.12 | | | | 0.10 | | | | 0.09 | | | | 0.04 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (1.35 | ) | | | 3.67 | | | | 2.28 | | | | 1.18 | | | | 1.22 | | | | 1.37 | |
| Total from investment operations | | $ | | | (1.32 | ) | | | 3.70 | | | | 2.40 | | | | 1.28 | | | | 1.31 | | | | 1.41 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.02 | | | | 0.15 | | | | 0.17 | | | | 0.10 | | | | 0.01 | | | | 0.03 | |
| Net realized gains on investments | | $ | | | 2.29 | | | | 1.14 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 2.31 | | | | 1.29 | | | | 0.17 | | | | 0.10 | | | | 0.01 | | | | 0.03 | |
| Redemption fees applied to capital | | $ | | | — | | | | — | | | | — | | | | — | | | | 0.00 | ** | | | 0.05 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 11.98 | | | | 15.61 | | | | 13.20 | | | | 10.97 | | | | 9.78 | | | | 8.48 | |
Total Return(1) | | % | | | (8.62 | ) | | | 30.37 | | | | 22.12 | | | | 13.30 | †† | | | 15.49 | | | | 20.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 56,570 | | | | 64,631 | | | | 58,697 | | | | 51,193 | | | | 47,551 | | | | 43,821 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 1.71 | | | | 1.65 | | | | 1.65 | | | | 1.65 | | | | 1.64 | | | | 1.87 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 1.70 | † | | | 1.65 | † | | | 1.65 | | | | 1.65 | | | | 1.68 | | | | 1.85 | |
Net investment income after expense waiver/recoupment(2)(3) | | % | | | 0.45 | | | | 0.23 | | | | 0.96 | | | | 0.94 | | | | 0.78 | | | | 0.64 | |
| Portfolio turnover rate | | % | | | 71 | | | | 130 | | | | 173 | | | | 116 | | | | 90 | | | | 100 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.96 | | | | 12.69 | | | | 10.55 | | | | 9.43 | | | | 8.22 | | | | 6.91 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.03 | ) | | | (0.07 | )* | | | 0.03 | * | | | 0.02 | | | | (0.00 | )** | | | (0.00 | )** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (1.28 | ) | | | 3.53 | | | | 2.20 | | | | 1.14 | | | | 1.21 | | | | 1.31 | |
| Total from investment operations | | $ | | | (1.31 | ) | | | 3.46 | | | | 2.23 | | | | 1.16 | | | | 1.21 | | | | 1.31 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | 0.05 | | | | 0.09 | | | | 0.05 | | | | — | | | | — | |
| Net realized gains of investments | | $ | | | 2.29 | | | | 1.14 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 2.29 | | | | 1.19 | | | | 0.09 | | | | 0.05 | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 11.36 | | | | 14.96 | | | | 12.69 | | | | 10.55 | | | | 9.43 | | | | 8.22 | |
Total Return(1) | | % | | | (8.97 | ) | | | 29.42 | | | | 21.23 | | | | 12.41 | †† | | | 14.72 | | | | 18.96 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 12,626 | | | | 17,311 | | | | 16,822 | | | | 16,338 | | | | 15,069 | | | | 12,466 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 2.46 | | | | 2.40 | | | | 2.40 | | | | 2.40 | | | | 2.39 | | | | 2.62 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 2.45 | † | | | 2.40 | † | | | 2.40 | | | | 2.40 | | | | 2.43 | | | | 2.60 | |
Net investment income (loss) after expense waiver/recoupment(2)(3) | | % | | | (0.42 | ) | | | (0.51 | ) | | | 0.22 | | | | 0.19 | | | | (0.02 | ) | | | (0.05 | ) |
| Portfolio turnover rate | | % | | | 71 | | | | 130 | | | | 173 | | | | 116 | | | | 90 | | | | 100 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005 or more than $(0.005). |
| |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
| |
| †† | | In 2005, 0.10% of the total return on Class A and Class B, consists of a payment by affiliate. Excluding this item, total return would have been 13.20% and 12.31% for Class A and Class B, respectively. |
See Accompanying Notes to Financial Statements
99
ING International Growth Opportunities Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.97 | | | | 12.70 | | | | 10.55 | | | | 9.42 | | | | 8.22 | | | | 6.91 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.02 | ) | | | (0.07 | ) | | | 0.04 | | | | 0.03 | | | | (0.00 | )** | | | (0.00 | )** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (1.28 | ) | | | 3.54 | | | | 2.19 | | | | 1.13 | | | | 1.20 | | | | 1.31 | |
| Total from investment operations | | $ | | | (1.30 | ) | | | 3.47 | | | | 2.23 | | | | 1.16 | | | | 1.20 | | | | 1.31 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | 0.06 | | | | 0.08 | | | | 0.04 | | | | — | | | | 0.00 | ** |
| Net realized gains on investments | | $ | | | 2.29 | | | | 1.14 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 2.29 | | | | 1.20 | | | | 0.08 | | | | 0.04 | | | | — | | | | 0.00 | ** |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 11.38 | | | | 14.97 | | | | 12.70 | | | | 10.55 | | | | 9.42 | | | | 8.22 | |
Total Return(1) | | % | | | (8.88 | ) | | | 29.46 | | | | 21.25 | | | | 12.46 | †† | | | 14.60 | | | | 18.97 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 16,775 | | | | 19,104 | | | | 15,918 | | | | 15,008 | | | | 16,230 | | | | 14,526 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 2.46 | | | | 2.40 | | | | 2.40 | | | | 2.40 | | | | 2.39 | | | | 2.62 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 2.45 | † | | | 2.40 | † | | | 2.40 | | | | 2.40 | | | | 2.43 | | | | 2.60 | |
Net investment income (loss) after expense waiver/recoupment(2)(3) | | % | | | (0.30 | ) | | | (0.52 | ) | | | 0.21 | | | | 0.18 | | | | (0.04 | ) | | | (0.05 | ) |
| Portfolio turnover rate | | % | | | 71 | | | | 130 | | | | 173 | | | | 116 | | | | 90 | | | | 100 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 15.57 | | | | 13.16 | | | | 10.94 | | | | 9.76 | | | | 8.45 | | | | 7.06 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.07 | | | | 0.06 | * | | | 0.15 | * | | | 0.14 | | | | 0.09 | | | | 0.10 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (1.36 | ) | | | 3.70 | | | | 2.29 | | | | 1.18 | | | | 1.25 | | | | 1.34 | |
| Total from investment operations | | $ | | | (1.29 | ) | | | 3.76 | | | | 2.44 | | | | 1.32 | | | | 1.34 | | | | 1.44 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.05 | | | | 0.21 | | | | 0.22 | | | | 0.15 | | | | 0.03 | | | | 0.05 | |
| Net realized gains on investments | | $ | | | 2.29 | | | | 1.14 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 2.34 | | | | 1.35 | | | | 0.22 | | | | 0.15 | | | | 0.03 | | | | 0.05 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 11.94 | | | | 15.57 | | | | 13.16 | | | | 10.94 | | | | 9.76 | | | | 8.45 | |
Total Return(1) | | % | | | (8.40 | ) | | | 31.02 | | | | 22.56 | | | | 13.73 | †† | | | 15.94 | | | | 20.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 12,238 | | | | 10,251 | | | | 13,354 | | | | 23,452 | | | | 17,211 | | | | 11,582 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 1.34 | | | | 1.28 | | | | 1.25 | | | | 1.26 | | | | 1.22 | | | | 1.34 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 1.33 | † | | | 1.28 | † | | | 1.25 | | | | 1.26 | | | | 1.26 | | | | 1.33 | |
Net investment income after expense waiver/recoupment(2)(3) | | % | | | 1.09 | | | | 0.46 | | | | 1.27 | | | | 1.34 | | | | 1.13 | | | | 1.29 | |
| Portfolio turnover rate | | % | | | 71 | | | | 130 | | | | 173 | | | | 116 | | | | 90 | | | | 100 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| (2) | | Annualized for periods less than one year. |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| * | | Calculated using average number of shares outstanding throughout the period. |
| ** | | Amount is less than $0.005 or more than $(0.005). |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
| †† | | In 2005, 0.10% of the total return on Class C and Class I, consists of a payment by affiliate. Excluding this item, total return would have been 12.36% and 13.63% for Class C and Class I, respectively. |
See Accompanying Notes to Financial Statements
100
ING International Growth Opportunities Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class Q |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 15.47 | | | | 13.10 | | | | 10.89 | | | | 9.72 | | | | 8.43 | | | | 7.04 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.05 | | | | 0.05 | | | | 0.14 | | | | 0.08 | | | | 0.06 | | | | 0.07 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (1.33 | ) | | | 3.64 | | | | 2.27 | | | | 1.20 | | | | 1.25 | | | | 1.37 | |
| Total from investment operations | | $ | | | (1.28 | ) | | | 3.69 | | | | 2.41 | | | | 1.28 | | | | 1.31 | | | | 1.44 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.04 | | | | 0.18 | | | | 0.20 | | | | 0.12 | | | | 0.02 | | | | 0.05 | |
| Net realized gains on investments | | $ | | | 2.29 | | | | 1.14 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 2.33 | | | | 1.32 | | | | 0.20 | | | | 0.12 | | | | 0.02 | | | | 0.05 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 11.86 | | | | 15.47 | | | | 13.10 | | | | 10.89 | | | | 9.72 | | | | 8.43 | |
Total Return(1) | | % | | | (8.45 | ) | | | 30.55 | | | | 22.38 | | | | 13.41 | †† | | | 15.61 | | | | 20.51 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 25,936 | | | | 32,532 | | | | 27,114 | | | | 14,544 | | | | 7,274 | | | | 14,755 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 1.59 | | | | 1.52 | | | | 1.50 | | | | 1.51 | | | | 1.56 | | | | 1.59 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 1.36 | † | | | 1.52 | † | | | 1.50 | | | | 1.51 | | | | 1.60 | | | | 1.59 | |
Net investment income after expense waiver/recoupment(2)(3) | | % | | | 0.76 | | | | 0.40 | | | | 1.19 | | | | 1.00 | | | | 0.73 | | | | 0.91 | |
| Portfolio turnover rate | | % | | | 71 | | | | 130 | | | | 173 | | | | 116 | | | | 90 | | | | 100 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
| |
| †† | | In 2005, 0.10% of the total return on Class Q, consists of a payment by affiliate. Excluding this item, total return would have been 13.31% for Class Q. |
See Accompanying Notes to Financial Statements
101
ING International Real Estate Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | February 28,
| | Six Months
| | Year
| | February 28,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.56 | | | | 11.63 | | | | 10.00 | | | | 14.50 | | | | 11.59 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.09 | * | | | 0.13 | * | | | 0.09 | * | | | 0.05 | * | | | 0.03 | * | | | 0.04 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.16 | ) | | | 3.14 | | | | 1.60 | | | | (2.16 | ) | | | 3.14 | | | | 1.59 | |
| Total from investment operations | | $ | | | (2.07 | ) | | | 3.27 | | | | 1.69 | | | | (2.11 | ) | | | 3.17 | | | | 1.63 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.45 | | | | 0.34 | | | | 0.06 | | | | 0.40 | | | | 0.26 | | | | 0.04 | |
| Total distributions | | $ | | | 0.45 | | | | 0.34 | | | | 0.06 | | | | 0.40 | | | | 0.26 | | | | 0.04 | |
| Net asset value, end of period | | $ | | | 12.04 | | | | 14.56 | | | | 11.63 | | | | 11.99 | | | | 14.50 | | | | 11.59 | |
Total Return(2) | | % | | | (14.25 | ) | | | 28.49 | | | | 16.94 | | | | (14.58 | ) | | | 27.69 | | | | 16.38 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 222,496 | | | | 271,425 | | | | 49,798 | | | | 8,502 | | | | 11,819 | | | | 1,639 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 1.46 | | | | 1.51 | | | | 2.01 | | | | 2.21 | | | | 2.26 | | | | 2.76 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.50 | | | | 1.50 | | | | 1.50 | | | | 2.25 | | | | 2.25 | | | | 2.25 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 1.52 | | | | 0.99 | | | | 1.33 | | | | 0.76 | | | | 0.25 | | | | 0.51 | |
| Portfolio turnover rate | | % | | | 22 | | | | 44 | | | | 29 | | | | 22 | | | | 44 | | | | 29 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | February 28,
| | Six Months
| | Year
| | February 28,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.49 | | | | 11.59 | | | | 10.00 | | | | 14.58 | | | | 11.64 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.05 | * | | | 0.03 | * | | | 0.04 | * | | | 0.12 | * | | | 0.16 | * | | | 0.08 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.15 | ) | | | 3.13 | | | | 1.59 | | | | (2.17 | ) | | | 3.15 | | | | 1.63 | |
| Total from investment operations | | $ | | | (2.10 | ) | | | 3.16 | | | | 1.63 | | | | (2.05 | ) | | | 3.31 | | | | 1.71 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.41 | | | | 0.26 | | | | 0.04 | | | | 0.47 | | | | 0.37 | | | | 0.07 | |
| Total distributions | | $ | | | 0.41 | | | | 0.26 | | | | 0.04 | | | | 0.47 | | | | 0.37 | | | | 0.07 | |
| Net asset value, end of period | | $ | | | 11.98 | | | | 14.49 | | | | 11.59 | | | | 12.06 | | | | 14.58 | | | | 11.64 | |
Total Return(2) | | % | | | (14.57 | ) | | | 27.58 | | | | 16.31 | | | | (14.11 | ) | | | 28.80 | | | | 17.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 96,014 | | | | 121,529 | | | | 17,075 | | | | 334,525 | | | | 127,029 | | | | 22,336 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 2.21 | | | | 2.26 | | | | 2.76 | | | | 1.16 | | | | 1.26 | | | | 1.76 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 2.25 | | | | 2.25 | | | | 2.25 | | | | 1.20 | | | | 1.25 | | | | 1.25 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 0.78 | | | | 0.24 | | | | 0.54 | | | | 1.98 | | | | 1.22 | | | | 1.09 | |
| Portfolio turnover rate | | % | | | 22 | | | | 44 | | | | 29 | | | | 22 | | | | 44 | | | | 29 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
102
ING International Real Estate Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout the period.
| | | | | | | |
| | | | | Class W |
| | | | | February 12,
|
| | | | | 2008(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 11.48 | |
| Income from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.07 | * |
| Net realized and unrealized gain on investments | | $ | | | 0.55 | |
| Total from investment operations | | $ | | | 0.62 | |
| Less distributions from: | | | | | | |
| Net investment income | | $ | | | 0.04 | |
| Total distributions | | $ | | | 0.04 | |
| Net asset value, end of period | | $ | | | 12.06 | |
Total Return(2) | | % | | | 5.44 | |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 114 | |
| Ratios to average net assets: | | | | | | |
Gross expenses prior to expense recoupment(3) | | % | | | 1.49 | |
Net expenses after expense recoupment(3)(4) | | % | | | 1.53 | |
Net investment income after expense recoupment(3)(4) | | % | | | 2.63 | |
| Portfolio turnover rate | | % | | | 22 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
103
ING International SmallCap Multi-Manager Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 66.43 | | | | 47.15 | | | | 37.75 | | | | 29.27 | | | | 25.37 | | | | 18.35 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.23 | | | | 0.31 | | | | 0.29 | | | | 0.33 | * | | | 0.02 | | | | 0.01 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (11.95 | ) | | | 19.25 | | | | 9.44 | | | | 8.05 | | | | 3.86 | | | | 7.01 | |
| Total from investment operations | | $ | | | (11.72 | ) | | | 19.56 | | | | 9.73 | | | | 8.38 | | | | 3.88 | | | | 7.02 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.32 | | | | 0.28 | | | | 0.33 | | | | — | | | | 0.00 | ** | | | — | |
| Net realized gain on investments | | $ | | | 7.88 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 8.20 | | | | 0.28 | | | | 0.33 | | | | — | | | | 0.00 | ** | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.10 | | | | 0.02 | | | | — | |
| Net asset value, end of period | | $ | | | 46.51 | | | | 66.43 | | | | 47.15 | | | | 37.75 | | | | 29.27 | | | | 25.37 | |
Total Return(1) | | % | | | (17.82 | ) | | | 41.67 | | | | 25.91 | | | | 28.97 | †† | | | 15.39 | † | | | 38.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 380,648 | | | | 523,535 | | | | 243,020 | | | | 173,612 | | | | 154,658 | | | | 150,043 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 1.66 | | | | 1.60 | | | | 1.66 | | | | 1.74 | | | | 1.72 | | | | 1.94 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 1.66 | | | | 1.60 | | | | 1.66 | | | | 1.74 | | | | 1.75 | | | | 1.95 | |
Net investment income after expense waiver/recoupment(2)(3) | | % | | | 0.92 | | | | 0.67 | | | | 0.67 | | | | 0.98 | | | | 0.07 | | | | 0.00 | ** |
| Portfolio turnover rate | | % | | | 38 | | | | 93 | | | | 85 | | | | 124 | | | | 106 | | | | 114 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 68.31 | | | | 48.53 | | | | 38.83 | | | | 30.30 | | | | 26.43 | | | | 19.25 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.02 | * | | | 0.00 | * ** | | | (0.01 | )* | | | 0.10 | * | | | (0.19 | ) | | | (0.24 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (12.26 | ) | | | 19.78 | | | | 9.75 | | | | 8.33 | | | | 4.04 | | | | 7.42 | |
| Total from investment operations | | $ | | | (12.24 | ) | | | 19.78 | | | | 9.74 | | | | 8.43 | | | | 3.85 | | | | 7.18 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | 0.04 | | | | — | | | | — | | | | — | |
| Net realized gain on investments | | $ | | | 7.88 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 7.88 | | | | — | | | | 0.04 | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.10 | | | | 0.02 | | | | — | |
| Net asset value, end of period | | $ | | | 48.19 | | | | 68.31 | | | | 48.53 | | | | 38.83 | | | | 30.30 | | | | 26.43 | |
Total Return(1) | | % | | | (18.11 | ) | | | 40.76 | | | | 25.10 | | | | 28.15 | †† | | | 14.64 | † | | | 37.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 37,736 | | | | 65,619 | | | | 58,469 | | | | 57,131 | | | | 58,318 | | | | 62,104 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(2) | | % | | | 2.31 | | | | 2.25 | | | | 2.31 | | | | 2.39 | | | | 2.37 | | | | 2.59 | |
Net expenses after expense waiver/recoupment(2)(3) | | % | | | 2.31 | | | | 2.25 | | | | 2.31 | | | | 2.39 | | | | 2.40 | | | | 2.60 | |
Net investment income (loss) after expense waiver/recoupment(2)(3) | | % | | | 0.07 | | | | 0.00 | ** | | | (0.03 | ) | | | 0.29 | | | | (0.60 | ) | | | (0.68 | ) |
| Portfolio turnover rate | | % | | | 38 | | | | 93 | | | | 85 | | | | 124 | | | | 106 | | | | 114 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by ING Investments, LLC within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005 or 0.005%. |
| |
| † | | In 2004, the Sub-Adviser fully reimbursed the Fund for a loss incurred from a transaction not meeting the Fund’s investment guidelines, which otherwise would have reduced total return by 0.07%. |
| |
| †† | | In 2005, 0.34% and 0.33% of the total return on Class A and Class B, respectively, consists of a payment by affiliate. Excluding this item, total return would have been 28.63% and 27.82% on Class A and Class B, respectively. |
See Accompanying Notes to Financial Statements
104
ING International SmallCap Multi-Manager Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 62.48 | | | | 44.39 | | | | 35.59 | | | | 27.77 | | | | 24.23 | | | | 17.65 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.05 | | | | 0.00 | * ** | | | (0.00 | )** | | | 0.10 | * | | | (0.17 | ) | | | (0.29 | ) |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (11.22 | ) | | | 18.09 | | | | 8.91 | | | | 7.62 | | | | 3.70 | | | | 6.87 | |
| Total from investment operations | | $ | | | (11.17 | ) | | | 18.09 | | | | 8.91 | | | | 7.72 | | | | 3.53 | | | | 6.58 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | 0.00 | ** | | | 0.11 | | | | — | | | | — | | | | — | |
| Net realized gain on investments | | $ | | | 7.88 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 7.88 | | | | 0.00 | ** | | | 0.11 | | | | — | | | | — | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.10 | | | | 0.01 | | | | — | |
| Net asset value, end of period | | $ | | | 43.43 | | | | 62.48 | | | | 44.39 | | | | 35.59 | | | | 27.77 | | | | 24.23 | |
Total Return(2) | | % | | | (18.09 | ) | | | 40.76 | | | | 25.09 | | | | 28.16 | †† | | | 14.61 | † | | | 37.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 72,979 | | | | 104,274 | | | | 65,534 | | | | 52,420 | | | | 47,793 | | | | 50,227 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 2.31 | | | | 2.25 | | | | 2.31 | | | | 2.39 | | | | 2.37 | | | | 2.59 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 2.31 | | | | 2.25 | | | | 2.31 | | | | 2.39 | | | | 2.40 | | | | 2.60 | |
Net investment income (loss) after expense waiver/recoupment(3)(4) | | % | | | 0.21 | | | | 0.01 | | | | (0.01 | ) | | | 0.30 | | | | (0.60 | ) | | | (0.68 | ) |
| Portfolio turnover rate | | % | | | 38 | | | | 93 | | | | 85 | | | | 124 | | | | 106 | | | | 114 | |
|
| | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 66.72 | | | | 47.35 | | | | 40.64 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.35 | | | | 0.60 | | | | 0.39 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (12.02 | ) | | | 19.25 | | | | 6.32 | |
| Total from investment operations | | $ | | | (11.67 | ) | | | 19.85 | | | | 6.71 | |
| Less distributions from: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.52 | | | | 0.48 | | | | — | |
| Net realized gain on investments | | $ | | | 7.88 | | | | — | | | | — | |
| Total distributions | | $ | | | 8.40 | | | | 0.48 | | | | — | |
| Net asset value, end of period | | $ | | | 46.65 | | | | 66.72 | | | | 47.35 | |
Total Return(2) | | % | | | (17.65 | ) | | | 42.24 | | | | 16.51 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 285,673 | | | | 376,737 | | | | 137,184 | |
| Ratios to average net assets: | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 1.27 | | | | 1.20 | | | | 1.20 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.27 | | | | 1.20 | | | | 1.20 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 1.36 | | | | 1.12 | | | | 1.02 | |
| Portfolio turnover rate | | % | | | 38 | | | | 93 | | | | 85 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is more than $(0.005) or less than $0.005. |
| |
| † | | In 2004, the Sub-Adviser fully reimbursed the Fund for a loss incurred from a transaction not meeting the Fund’s investment guidelines, which otherwise would have reduced total return by 0.07%. |
| |
| †† | | In 2005, 0.36% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 27.80%. |
See Accompanying Notes to Financial Statements
105
ING International SmallCap Multi-Manager Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class Q |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 71.41 | | | | 50.65 | | | | 40.53 | | | | 31.34 | | | | 27.11 | | | | 19.54 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.29 | | | | 0.48 | | | | 0.37 | | | | 0.43 | * | | | 0.10 | | | | 0.21 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | (12.86 | ) | | | 20.62 | | | | 10.16 | | | | 8.66 | | | | 4.13 | | | | 7.36 | |
| Total from investment operations | | $ | | | (12.57 | ) | | | 21.10 | | | | 10.53 | | | | 9.09 | | | | 4.23 | | | | 7.57 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.37 | | | | 0.34 | | | | 0.41 | | | | — | | | | 0.01 | | | | — | |
| Net realized gain on investments | | $ | | | 7.88 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 8.25 | | | | 0.34 | | | | 0.41 | | | | — | | | | 0.01 | | | | — | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.10 | | | | 0.01 | | | | — | |
| Net asset value, end of period | | $ | | | 50.59 | | | | 71.41 | | | | 50.65 | | | | 40.53 | | | | 31.34 | | | | 27.11 | |
Total Return(2) | | % | | | (17.76 | ) | | | 41.87 | | | | 26.14 | | | | 29.32 | †† | | | 15.66 | † | | | 38.74 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 102,129 | | | | 131,142 | | | | 82,245 | | | | 57,846 | | | | 61,166 | | | | 79,140 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(3) | | % | | | 1.52 | | | | 1.45 | | | | 1.48 | | | | 1.49 | | | | 1.47 | | | | 1.58 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.52 | | | | 1.45 | | | | 1.48 | | | | 1.49 | | | | 1.50 | | | | 1.59 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 1.12 | | | | 0.81 | | | | 0.83 | | | | 1.18 | | | | 0.28 | | | | 0.35 | |
| Portfolio turnover rate | | % | | | 38 | | | | 93 | | | | 85 | | | | 124 | | | | 106 | | | | 114 | |
|
| | | | | | | |
| | | | | Class W |
| | | | | February 12,
|
| | | | | 2008(1) to
|
| | | | | April 30,
|
| | | | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | |
| Net asset value, beginning of period | | $ | | | 50.70 | |
| Income from investment operations: | | | | | | |
| Net investment income | | $ | | | 0.59 | * |
| Net realized and unrealized gain on investments and foreign currency related transactions (net of Indian capital gains tax) | | $ | | | 3.46 | |
| Total from investment operations | | $ | | | 4.05 | |
| Net asset value, end of period | | $ | | | 54.75 | |
Total Return(2) | | % | | | 7.99 | |
| | | | | | | |
| | | | | | | |
Ratios and Supplemental Data: | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 271 | |
| Ratios to average net assets: | | | | | | |
Expenses(3) | | % | | | 1.21 | |
Net investment income (loss)(3) | | % | | | 5.20 | |
| Portfolio turnover rate | | % | | | 38 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | In 2004, the Sub-Adviser fully reimbursed the Fund for a loss incurred from a transaction not meeting the Fund’s investment guidelines, which otherwise would have reduced total return by 0.07%. |
| |
| †† | | In 2005, 0.36% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 28.96%. |
See Accompanying Notes to Financial Statements
106
ING International Value Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Class A |
| | | | | | | Six Months
| | | | | | | | | | |
| | | | | | | Ended
| | | | | | | | | | |
| | | | | | | April 30,
| | Year Ended October 31, |
| | | | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | | | | | 23.15 | | | | 21.52 | | | | 18.33 | | | | 16.90 | | | | 13.71 | | | | 10.40 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | | | | | 0.18 | | | | 0.24 | * | | | 0.18 | * | | | 0.17 | | | | 0.13 | | | | 0.08 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | | | | | (2.08 | ) | | | 3.73 | | | | 4.58 | | | | 2.28 | | | | 3.15 | | | | 3.48 | |
| Total from investment operations | | $ | | | | | | | (1.90 | ) | | | 3.97 | | | | 4.76 | | | | 2.45 | | | | 3.28 | | | | 3.56 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | | | | | 0.23 | | | | 0.20 | | | | 0.16 | | | | 0.22 | | | | 0.09 | | | | 0.05 | |
| Net realized gains on investments | | $ | | | | | | | 3.35 | | | | 2.14 | | | | 1.41 | | | | 0.80 | | | | — | | | | 0.20 | |
| Total distributions | | $ | | | | | | | 3.58 | | | | 2.34 | | | | 1.57 | | | | 1.02 | | | | 0.09 | | | | 0.25 | |
| Payment by affiliate | | $ | | | | | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | | | | | 17.67 | | | | 23.15 | | | | 21.52 | | | | 18.33 | | | | 16.90 | | | | 13.71 | |
Total Return(1) | | % | | | | | | | (8.84 | ) | | | 19.87 | | | | 27.64 | | | | 15.06 | † | | | 24.03 | | | | 35.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | | | | | 1,767,378 | | | | 2,136,218 | | | | 1,995,027 | | | | 1,732,332 | | | | 1,869,868 | | | | 1,641,943 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to brokerage commission recapture(2) | | % | | | | | | | 1.60 | | | | 1.59 | | | | 1.60 | | | | 1.60 | | | | 1.61 | | | | 1.74 | |
Net expenses after brokerage commission recapture(2) | | % | | | | | | | 1.59 | | | | 1.59 | | | | 1.60 | | | | 1.60 | | | | 1.61 | | | | 1.74 | |
Net investment income after brokerage commission recapture(2) | | % | | | | | | | 1.94 | | | | 1.08 | | | | 0.90 | | | | 0.88 | | | | 0.79 | | | | 0.66 | |
| Portfolio turnover rate | | % | | | | | | | 12 | | | | 32 | | | | 25 | | | | 21 | | | | 29 | | | | 9 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Class B |
| | | | | | | Six Months
| | | | | | | | | | |
| | | | | | | Ended
| | | | | | | | | | |
| | | | | | | April 30,
| | Year Ended October 31, |
| | | | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | | | | | 22.64 | | | | 21.07 | | | | 17.95 | | | | 16.58 | | | | 13.45 | | | | 10.23 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | | | | | 0.09 | * | | | 0.08 | * | | | 0.04 | * | | | 0.05 | | | | 0.02 | | | | (0.00 | )** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | | | | | (2.02 | ) | | | 3.66 | | | | 4.50 | | | | 2.23 | | | | 3.11 | | | | 3.42 | |
| Total from investment operations | | $ | | | | | | | (1.93 | ) | | | 3.74 | | | | 4.54 | | | | 2.28 | | | | 3.13 | | | | 3.42 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | | | | | 0.02 | | | | 0.03 | | | | 0.01 | | | | 0.11 | | | | — | | | | — | |
| Net realized gains on investments | | $ | | | | | | | 3.35 | | | | 2.14 | | | | 1.41 | | | | 0.80 | | | | — | | | | 0.20 | |
| Total distributions | | $ | | | | | | | 3.37 | | | | 2.17 | | | | 1.42 | | | | 0.91 | | | | — | | | | 0.20 | |
| Payment by affiliate | | $ | | | | | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | | | | | 17.34 | | | | 22.64 | | | | 21.07 | | | | 17.95 | | | | 16.58 | | | | 13.45 | |
Total Return(1) | | % | | | | | | | (9.15 | ) | | | 19.03 | | | | 26.81 | | | | 14.21 | † | | | 23.27 | | | | 34.11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | | | | | 193,236 | | | | 301,705 | | | | 368,952 | | | | 411,071 | | | | 454,952 | | | | 420,651 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to brokerage commission recapture(2) | | % | | | | | | | 2.30 | | | | 2.29 | | | | 2.30 | | | | 2.30 | | | | 2.31 | | | | 2.44 | |
Net expenses after brokerage commission recapture(2) | | % | | | | | | | 2.29 | | | | 2.29 | | | | 2.30 | | | | 2.30 | | | | 2.31 | | | | 2.44 | |
Net investment income (loss) after brokerage commission recapture(2) | | % | | | | | | | 0.98 | | | | 0.39 | | | | 0.20 | | | | 0.17 | | | | 0.09 | | | | (0.04 | ) |
| Portfolio turnover rate | | % | | | | | | | 12 | | | | 32 | | | | 25 | | | | 21 | | | | 29 | | | | 9 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005 or more than $(0.005). |
| |
| † | | In 2005, there was no impact on total return due to payment by affiliate. |
See Accompanying Notes to Financial Statements
107
ING International Value Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 22.52 | | | | 20.98 | | | | 17.91 | | | | 16.54 | | | | 13.42 | | | | 10.21 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.12 | | | | 0.08 | * | | | 0.05 | | | | 0.04 | | | | 0.02 | | | | (0.00 | )* |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.02 | ) | | | 3.65 | | | | 4.46 | | | | 2.24 | | | | 3.10 | | | | 3.41 | |
| Total from investment operations | | $ | | | (1.90 | ) | | | 3.73 | | | | 4.51 | | | | 2.28 | | | | 3.12 | | | | 3.41 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.08 | | | | 0.05 | | | | 0.03 | | | | 0.11 | | | | — | | | | — | |
| Net realized gains on investments | | $ | | | 3.35 | | | | 2.14 | | | | 1.41 | | | | 0.80 | | | | — | | | | 0.20 | |
| Total distributions | | $ | | | 3.43 | | | | 2.19 | | | | 1.44 | | | | 0.91 | | | | — | | | | 0.20 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | * | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 17.19 | | | | 22.52 | | | | 20.98 | | | | 17.91 | | | | 16.54 | | | | 13.42 | |
Total Return(1) | | % | | | (9.09 | ) | | | 19.10 | | | | 26.71 | | | | 14.25 | † | | | 23.25 | | | | 34.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 619,065 | | | | 757,941 | | | | 729,067 | | | | 663,626 | | | | 675,039 | | | | 628,704 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver and brokerage commission recapture(2) | | % | | | 2.30 | | | | 2.29 | | | | 2.30 | | | | 2.30 | | | | 2.31 | | | | 2.44 | |
Net expenses after expense waiver and prior to brokerage commission recapture(2) | | % | | | 2.15 | | | | 2.28 | | | | 2.30 | | | | 2.30 | | | | 2.31 | | | | 2.44 | |
Net expenses after expense waiver and brokerage commission recapture(2) | | % | | | 2.14 | | | | 2.28 | | | | 2.30 | | | | 2.30 | | | | 2.31 | | | | 2.44 | |
Net investment income (loss) after expense waiver and brokerage commission recapture(2) | | % | | | 1.37 | | | | 0.38 | | | | 0.20 | | | | 0.15 | | | | 0.09 | | | | (0.04 | ) |
| Portfolio turnover rate | | % | | | 12 | | | | 32 | | | | 25 | | | | 21 | | | | 29 | | | | 9 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | | | 23.22 | | | | 21.58 | | | | 18.38 | | | | 16.96 | | | | 13.74 | | | | 10.43 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.21 | | | | 0.32 | * | | | 0.25 | | | | 0.20 | | | | 0.16 | | | | 0.13 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.09 | ) | | | 3.74 | | | | 4.60 | | | | 2.31 | | | | 3.20 | | | | 3.48 | |
| Total from investment operations | | $ | | | (1.88 | ) | | | 4.06 | | | | 4.85 | | | | 2.51 | | | | 3.36 | | | | 3.61 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.31 | | | | 0.28 | | | | 0.24 | | | | 0.29 | | | | 0.14 | | | | 0.10 | |
| Net realized gains on investments | | $ | | | 3.35 | | | | 2.14 | | | | 1.41 | | | | 0.80 | | | | — | | | | 0.20 | |
| Total distributions | | $ | | | 3.66 | | | | 2.42 | | | | 1.65 | | | | 1.09 | | | | 0.14 | | | | 0.30 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | * | | | — | | | | — | |
| Net asset value, end of year | | $ | | | 17.68 | | | | 23.22 | | | | 21.58 | | | | 18.38 | | | | 16.96 | | | | 13.74 | |
Total Return(1) | | % | | | (8.70 | ) | | | 20.31 | | | | 28.15 | | | | 15.42 | † | | | 24.67 | | | | 35.58 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (000’s) | | $ | | | 1,573,084 | | | | 2,176,402 | | | | 1,728,560 | | | | 1,221,594 | | | | 831,142 | | | | 482,047 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to brokerage commission recapture(2) | | % | | | 1.25 | | | | 1.23 | | | | 1.22 | | | | 1.23 | | | | 1.21 | | | | 1.29 | |
Net expenses after brokerage commission recapture(2) | | % | | | 1.24 | | | | 1.23 | | | | 1.22 | | | | 1.23 | | | | 1.21 | | | | 1.29 | |
Net investment income after brokerage commission recapture(2) | | % | | | 2.11 | | | | 1.45 | | | | 1.26 | | | | 1.18 | | | | 1.18 | | | | 1.12 | |
| Portfolio turnover rate | | % | | | 12 | | | | 32 | | | | 25 | | | | 21 | | | | 29 | | | | 9 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| * | | Amount is less than $0.005 or more than $(0.005). |
| |
| † | | In 2005, there was no impact on total return due to payment by affiliate. |
See Accompanying Notes to Financial Statements
108
ING International Value Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class Q |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 23.26 | | | | 21.57 | | | | 18.37 | | | | 16.94 | | | | 13.73 | | | | 10.44 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.22 | | | | 0.31 | * | | | 0.21 | * | | | 0.19 | | | | 0.14 | | | | 0.10 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (2.10 | ) | | | 3.74 | | | | 4.59 | | | | 2.29 | | | | 3.17 | | | | 3.49 | |
| Total from investment operations | | $ | | | (1.88 | ) | | | 4.05 | | | | 4.80 | | | | 2.48 | | | | 3.31 | | | | 3.59 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.31 | | | | 0.22 | | | | 0.19 | | | | 0.25 | | | | 0.10 | | | | 0.10 | |
| Net realized gains on investments | | $ | | | 3.35 | | | | 2.14 | | | | 1.41 | | | | 0.80 | | | | — | | | | 0.20 | |
| Total distributions | | $ | | | 3.66 | | | | 2.36 | | | | 1.60 | | | | 1.05 | | | | 0.10 | | | | 0.30 | |
| Payment by affiliate | | $ | | | — | | | | — | | | | — | | | | 0.00 | ** | | | — | | | | — | |
| Net asset value, end of period | | $ | | | 17.72 | | | | 23.26 | | | | 21.57 | | | | 18.37 | | | | 16.94 | | | | 13.73 | |
Total Return(1) | | % | | | (8.68 | ) | | | 20.25 | | | | 27.82 | | | | 15.20 | † | | | 24.32 | | | | 35.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 22,710 | | | | 26,512 | | | | 26,383 | | | | 27,993 | | | | 28,862 | | | | 29,319 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver and brokerage commission recapture(2) | | % | | | 1.50 | | | | 1.48 | | | | 1.47 | | | | 1.48 | | | | 1.46 | | | | 1.54 | |
Net expenses after expense waiver and prior to brokerage commission recapture(2) | | % | | | 1.25 | | | | 1.27 | | | | 1.47 | | | | 1.48 | | | | 1.46 | | | | 1.54 | |
Net expenses after expense waiver and brokerage commission recapture(2) | | % | | | 1.24 | | | | 1.27 | | | | 1.47 | | | | 1.48 | | | | 1.46 | | | | 1.54 | |
Net investment income after expense waiver brokerage commission recapture(2) | | % | | | 2.32 | | | | 1.40 | | | | 1.06 | | | | 0.99 | | | | 0.89 | | | | 0.87 | |
| Portfolio turnover rate | | % | | | 12 | | | | 32 | | | | 25 | | | | 21 | | | | 29 | | | | 9 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| † | | In 2005, there was no impact on total return due to payment by affiliate. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
109
ING International Value Choice Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | February 1,
|
| | | | | Ended
| | Year Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.89 | | | | 12.42 | | | | 10.70 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.04 | | | | 0.10 | * | | | 0.12 | * | | | 0.11 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (0.89 | ) | | | 2.65 | | | | 1.86 | | | | 0.59 | |
| Total from investment operations | | $ | | | (0.85 | ) | | | 2.75 | | | | 1.98 | | | | 0.70 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.10 | | | | 0.07 | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.98 | | | | 0.21 | | | | 0.16 | | | | — | |
| Total distributions | | $ | | | 2.08 | | | | 0.28 | | | | 0.26 | | | | — | |
| Net asset value, end of period | | $ | | | 11.96 | | | | 14.89 | | | | 12.42 | | | | 10.70 | |
Total Return(2) | | % | | | (5.41 | ) | | | 22.48 | | | | 18.82 | | | | 7.00 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 15,265 | | | | 16,598 | | | | 17,962 | | | | 6,115 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 1.60 | | | | 1.63 | | | | 1.71 | | | | 3.44 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 1.65 | | | | 1.70 | | | | 1.70 | | | | 1.70 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 1.64 | | | | 1.70 | | | | 1.69 | | | | 1.70 | |
Net investment income after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 0.70 | | | | 0.77 | | | | 1.04 | | | | 1.08 | |
| Portfolio turnover rate | | % | | | 33 | | | | 88 | | | | 31 | | | | 24 | |
|
| | |
| (1) | | Commencement of operations. |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| (3) | | Annualized for periods less than one year. |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
110
ING International Value Choice Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class B |
| | | | | Six Months
| | | | | | February 1,
|
| | | | | Ended
| | Year Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.67 | | | | 12.27 | | | | 10.65 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.02 | ) | | | 0.00 | * ** | | | 0.04 | * | | | 0.04 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (0.86 | ) | | | 2.61 | | | | 1.82 | | | | 0.61 | |
| Total from investment operations | | $ | | | (0.88 | ) | | | 2.61 | | | | 1.86 | | | | 0.65 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.00 | ** | | | — | | | | 0.08 | | | | — | |
| Net realized gains on investments | | $ | | | 1.98 | | | | 0.21 | | | | 0.16 | | | | — | |
| Total distributions | | $ | | | 1.98 | | | | 0.21 | | | | 0.24 | | | | — | |
| Net asset value, end of period | | $ | | | 11.81 | | | | 14.67 | | | | 12.27 | | | | 10.65 | |
Total Return(2) | | % | | | (5.75 | ) | | | 21.54 | | | | 17.77 | | | | 6.50 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 3,259 | | | | 3,805 | | | | 3,565 | | | | 1,427 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment and brokerage commission recapture(3) | | % | | | 2.35 | | | | 2.38 | | | | 2.46 | | | | 4.19 | |
Net expenses after expense waiver/recoupment and prior to brokerage commission recapture(3)(4) | | % | | | 2.40 | | | | 2.45 | | | | 2.45 | | | | 2.45 | |
Net expenses after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | 2.39 | | | | 2.45 | | | | 2.44 | | | | 2.45 | |
Net investment income (loss) after expense waiver/recoupment and brokerage commission recapture(3)(4) | | % | | | (0.14 | ) | | | 0.01 | | | | 0.35 | | | | 0.36 | |
| Portfolio turnover rate | | % | | | 33 | | | | 88 | | | | 31 | | | | 24 | |
|
| | |
| (1) | | Commencement of operations. |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| (3) | | Annualized for periods less than one year. |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| * | | Calculated using average number of shares outstanding throughout the period. |
| ** | | Amount is less than $0.005. |
See Accompanying Notes to Financial Statements
111
ING International Value Choice Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class C |
| | | | | Six Months
| | | | | | February 4,
|
| | | | | Ended
| | Year Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31, | | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2005 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.70 | | | | 12.29 | | | | 10.66 | | | | 10.01 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.01 | ) | | | 0.00 | ** | | | 0.04 | * | | | 0.04 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (0.87 | ) | | | 2.62 | | | | 1.83 | | | | 0.61 | |
| Total from investment operations | | $ | | | (0.88 | ) | | | 2.62 | | | | 1.87 | | | | 0.65 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | 0.08 | | | | — | |
| Net realized gains on investments | | $ | | | 1.98 | | | | 0.21 | | | | 0.16 | | | | — | |
| Total distributions | | $ | | | 1.98 | | | | 0.21 | | | | 0.24 | | | | — | |
| Net asset value, end of period | | $ | | | 11.84 | | | | 14.70 | | | | 12.29 | | | | 10.66 | |
Total Return(2) | | % | | | (5.75 | ) | | | 21.58 | | | | 17.78 | | | | 6.49 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 4,179 | | | | 4,930 | | | | 4,189 | | | | 1,796 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver and brokerage commission recapture(3) | | % | | | 2.35 | | | | 2.38 | | | | 2.46 | | | | 4.19 | |
Net expenses after expense waiver and prior to brokerage commission recapture(3)(4) | | % | | | 2.40 | | | | 2.45 | | | | 2.45 | | | | 2.45 | |
Net expenses after expense waiver and brokerage commission recapture(3)(4) | | % | | | 2.39 | | | | 2.45 | | | | 2.44 | | | | 2.45 | |
Net investment income (loss) after expense waiver and brokerage commission recapture(3)(4) | | % | | | (0.13 | ) | | | 0.00 | ** | | | 0.33 | | | | 0.35 | |
| Portfolio turnover rate | | % | | | 33 | | | | 88 | | | | 31 | | | | 24 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is less than $0.005 or 0.005%. |
See Accompanying Notes to Financial Statements
112
ING International Value Choice Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | |
| | | | | Class I |
| | | | | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.92 | | | | 12.42 | | | | 11.04 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.06 | * | | | 0.17 | * | | | 0.16 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (0.89 | ) | | | 2.64 | | | | 1.22 | |
| Total from investment operations | | $ | | | (0.83 | ) | | | 2.81 | | | | 1.38 | |
| Less distributions from: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.16 | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 1.98 | | | | 0.21 | | | | — | |
| Total distributions | | $ | | | 2.14 | | | | 0.31 | | | | — | |
| Net asset value, end of period | | $ | | | 11.95 | | | | 14.92 | | | | 12.42 | |
Total Return(2) | | % | | | (5.23 | ) | | | 23.04 | | | | 12.50 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 52,799 | | | | 60,413 | | | | 36,899 | |
| Ratios to average net assets: | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver and brokerage commission recapture(3) | | % | | | 1.27 | | | | 1.24 | | | | 1.36 | |
Net expenses after expense waiver and prior to brokerage commission recapture(3)(4) | | % | | | 1.32 | | | | 1.31 | | | | 1.35 | |
Net expenses after expense waiver and brokerage commission recapture(3)(4) | | % | | | 1.31 | | | | 1.31 | | | | 1.34 | |
Net investment income after expense waiver and brokerage commission recapture(3)(4) | | % | | | 0.96 | | | | 1.29 | | | | 1.56 | |
| Portfolio turnover rate | | % | | | 33 | | | | 88 | | | | 31 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
113
ING International Value Opportunities Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | February 28,
| | Six Months
| | February 28,
|
| | | | | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.64 | | | | 10.00 | | | | 10.59 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.08 | | | | 0.17 | | | | 0.07 | | | | 0.02 | * |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.16 | ) | | | 0.47 | | | | (1.15 | ) | | | 0.57 | |
| Total from investment operations | | $ | | | (1.08 | ) | | | 0.64 | | | | (1.08 | ) | | | 0.59 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.20 | | | | — | | | | 0.10 | | | | — | |
| Net realized gains on investments | | $ | | | 0.05 | | | | — | | | | 0.05 | | | | — | |
| Total distributions | | $ | | | 0.25 | | | | — | | | | 0.15 | | | | — | |
| Net asset value, end of period | | $ | | | 9.31 | | | | 10.64 | | | | 9.36 | | | | 10.59 | |
Total Return(2) | | % | | | (10.20 | ) | | | 6.40 | | | | (10.24 | ) | | | 5.90 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 9,361 | | | | 10,671 | | | | 19 | | | | 2 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 3.22 | | | | 2.80 | | | | 3.97 | | | | 3.55 | |
Net expenses after expense waiver(3)(4) | | % | | | 1.46 | | | | 1.40 | | | | 2.21 | | | | 2.15 | |
Net investment income after expense waiver(3)(4) | | % | | | 1.73 | | | | 2.52 | | | | 1.68 | | | | 0.33 | |
| Portfolio turnover rate | | % | | | 19 | | | | 41 | | | | 19 | | | | 41 | |
|
| | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | February 28,
| | Six Months
| | February 28,
|
| | | | | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2008 | | 2007 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.56 | | | | 10.00 | | | | 10.67 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.05 | | | | 0.01 | * | | | 0.09 | | | | 0.20 | |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (1.15 | ) | | | 0.55 | | | | (1.17 | ) | | | 0.47 | |
| Total from investment operations | | $ | | | (1.10 | ) | | | 0.56 | | | | (1.08 | ) | | | 0.67 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.21 | | | | — | | | | 0.23 | | | | — | |
| Net realized gains on investments | | $ | | | 0.05 | | | | — | | | | 0.05 | | | | — | |
| Total distributions | | $ | | | 0.26 | | | | — | | | | 0.28 | | | | — | |
| Net asset value, end of period | | $ | | | 9.20 | | | | 10.56 | | | | 9.31 | | | | 10.67 | |
Total Return(2) | | % | | | (10.53 | ) | | | 5.60 | | | | (10.19 | ) | | | 6.70 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 38 | | | | 28 | | | | 1 | | | | 1 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 3.97 | | | | 3.55 | | | | 2.96 | | | | 2.55 | |
Net expenses after expense waiver(3)(4) | | % | | | 2.21 | | | | 2.15 | | | | 1.20 | | | | 1.15 | |
Net investment income after expense waiver(3)(4) | | % | | | 1.13 | | | | 0.19 | | | | 1.77 | | | | 2.94 | |
| Portfolio turnover rate | | % | | | 19 | | | | 41 | | | | 19 | | | | 41 | |
|
| | |
| (1) | | Commencement of operations |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, tax, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
114
ING Russia Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A |
| | | | | Six Months
| | | | | | | | | | |
| | | | | Ended
| | | | | | | | | | |
| | | | | April 30,
| | Year Ended October 31, |
| | | | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 78.13 | | | | 55.81 | | | | 33.49 | | | | 25.01 | | | | 19.13 | | | | 12.15 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | (0.42 | )* | | | (0.33 | )* | | | (0.27 | ) | | | (0.00 | )** | | | 0.04 | | | | (0.00 | )** |
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | | $ | | | (0.15 | ) | | | 25.77 | | | | 22.37 | | �� | | 8.39 | | | | 5.69 | | | | 7.06 | |
| Total from investment operations | | $ | | | (0.57 | ) | | | 25.44 | | | | 22.10 | | | | 8.39 | | | | 5.73 | | | | 7.06 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | — | | | | — | | | | — | | | | 0.01 | | | | 0.02 | | | | 0.12 | |
| Net realized gains on investments | | $ | | | 11.59 | | | | 3.12 | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 11.59 | | | | 3.12 | | | | — | | | | 0.01 | | | | 0.02 | | | | 0.12 | |
| Redemption fees applied to capital | | $ | | | — | | | | — | | | | 0.22 | | | | 0.10 | | | | 0.17 | | | | 0.04 | |
| Net asset value, end of period | | $ | | | 65.97 | | | | 78.13 | | | | 55.81 | | | | 33.49 | | | | 25.01 | | | | 19.13 | |
Total Return(1) | | % | | | (1.31 | ) | | | 47.16 | | | | 66.65 | | | | 33.98 | | | | 30.88 | | | | 58.98 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 897,238 | | | | 922,504 | | | | 751,947 | | | | 271,603 | | | | 212,180 | | | | 161,601 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses(2) | | % | | | 2.03 | | | | 1.96 | | | | 1.98 | | | | 2.13 | | | | 2.01 | | | | 2.09 | |
Net investment income (loss)(2) | | % | | | (1.25 | ) | | | (0.52 | ) | | | (0.64 | ) | | | (0.01 | ) | | | 0.15 | | | | (0.02 | ) |
| Portfolio turnover rate | | % | | | 25 | | | | 12 | | | | 20 | | | | 26 | | | | 54 | | | | 23 | |
|
| | |
| (1) | | Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. |
| |
| (2) | | Annualized for periods less than one year. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| ** | | Amount is more than $(0.005). |
See Accompanying Notes to Financial Statements
115
ING Emerging Markets Fixed Income Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | December 21,
| | Six Months
| | Year
| | January 4,
|
| | | | | Ended
| | Ended
| | 2005(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.39 | | | | 10.33 | | | | 10.00 | | | | 10.36 | | | | 10.30 | | | | 10.15 | |
| Income (loss) from investment operations: | | | | | | | | | �� | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.33 | | | | 0.66 | * | | | 0.64 | * | | | 0.28 | | | | 0.54 | * | | | 0.59 | * |
| Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and futures | | $ | | | (0.41 | ) | | | 0.06 | | | | 0.26 | | | | (0.40 | ) | | | 0.10 | | | | 0.09 | |
| Total from investment operations | | $ | | | (0.08 | ) | | | 0.72 | | | | 0.90 | | | | (0.12 | ) | | | 0.64 | | | | 0.68 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.32 | | | | 0.63 | | | | 0.57 | | | | 0.28 | | | | 0.55 | | | | 0.53 | |
| Net realized gains on investments | | $ | | | — | | | | 0.03 | | | | — | | | | — | | | | 0.03 | | | | — | |
| Total distributions | | $ | | | 0.32 | | | | 0.66 | | | | 0.57 | | | | 0.28 | | | | 0.58 | | | | 0.53 | |
| Net asset value, end of period | | $ | | | 9.99 | | | | 10.39 | | | | 10.33 | | | | 9.96 | | | | 10.36 | | | | 10.30 | |
Total Return(2) | | % | | | (0.82 | ) | | | 7.18 | | | | 9.28 | | | | (1.18 | ) | | | 6.40 | | | | 6.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 4,658 | | | | 10,539 | | | | 26,121 | | | | 334 | | | | 404 | | | | 293 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(4) | | % | | | 1.08 | | | | 1.12 | | | | 2.41 | | | | 1.83 | | | | 1.87 | | | | 3.16 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.08 | | | | 1.20 | | | | 1.25 | | | | 1.83 | | | | 1.95 | | | | 2.00 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 6.38 | | | | 6.39 | | | | 7.36 | | | | 5.64 | | | | 5.22 | | | | 6.91 | |
| Portfolio turnover rate | | % | | | 20 | | | | 29 | | | | 56 | | | | 20 | | | | 29 | | | | 56 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | March 1,
| | Six Months
| | December 20,
| | May 1,
| | February 7,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | 2006(1) to
| | 2006 to
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | August 24,
| | April 30,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006(5) | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.35 | | | | 10.29 | | | | 10.43 | | | | 10.36 | | | | 10.48 | | | | 10.18 | | | | 10.24 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.29 | | | | 0.53 | | | | 0.61 | * | | | 0.33 | | | | 0.54 | | | | 0.26 | * | | | 0.28 | * |
| Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and futures | | $ | | | (0.40 | ) | | | 0.11 | | | | (0.39 | ) | | | (0.40 | ) | | | (0.11 | ) | | | (0.28 | ) | | | (0.19 | ) |
| Total from investment operations | | $ | | | (0.11 | ) | | | 0.64 | | | | 0.27 | | | | (0.07 | ) | | | 0.43 | | | | (0.02 | ) | | | 0.09 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.28 | | | | 0.55 | | | | 0.41 | | | | 0.33 | | | | 0.55 | | | | 0.06 | | | | 0.15 | |
| Net realized gains on investments | | $ | | | — | | | | 0.03 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total distributions | | $ | | | 0.28 | | | | 0.58 | | | | 0.41 | | | | 0.33 | | | | 0.55 | | | | 0.06 | | | | 0.15 | |
| Net asset value, end of period | | $ | | | 9.96 | | | | 10.35 | | | | 10.29 | | | | 9.96 | | | | 10.36 | | | | 10.10 | | | | 10.18 | |
Total Return(2) | | % | | | (1.06 | ) | | | 6.41 | | | | 2.75 | | | | (0.67 | ) | | | 4.25 | | | | (0.15 | ) | | | 0.91 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 1,900 | | | | 1,564 | | | | 344 | | | | 283,931 | | | | 303,156 | | | | 13 | | | | 13 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver/recoupment(4) | | % | | | 1.83 | | | | 1.87 | | | | 3.16 | | | | 0.81 | | | | 0.84 | | | | 2.33 | | | | 2.65 | |
Net expenses after expense waiver/recoupment(3)(4) | | % | | | 1.83 | | | | 1.83 | | | | 1.95 | | | | 0.81 | | | | 0.92 | | | | 1.06 | | | | 1.00 | |
Net investment income after expense waiver/recoupment(3)(4) | | % | | | 5.66 | | | | 4.87 | | | | 7.09 | | | | 6.67 | | | | 5.36 | | | | 8.32 | | | | 7.79 | |
| Portfolio turnover rate | | % | | | 20 | | | | 29 | | | | 56 | | | | 20 | | | | 29 | | | | 29 | | | | 26 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| (4) | | Annualized for periods less than one year. |
| |
| (5) | | Class I was fully redeemed on August 25, 2006 and re-commenced operations on December 20, 2006. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
116
ING Global Bond Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | June 30,
| | Six Months
| | Year
| | June 30,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.59 | | | | 10.25 | | | | 10.00 | | | | 10.55 | | | | 10.24 | | | | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.15 | * | | | 0.31 | * | | | 0.08 | * | | | 0.10 | * | | | 0.25 | * | | | 0.06 | * |
| Net realized and unrealized gain on investments, foreign currency related transactions, and futures | | $ | | | 0.78 | | | | 0.64 | | | | 0.23 | | | | 0.77 | | | | 0.62 | | | | 0.22 | |
| Total from investment operations | | $ | | | 0.93 | | | | 0.95 | | | | 0.31 | | | | 0.87 | | | | 0.87 | | | | 0.28 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.55 | | | | 0.43 | | | | 0.06 | | | | 0.47 | | | | 0.38 | | | | 0.04 | |
| Net realized gains on investments | | $ | | | 0.12 | | | | 0.18 | | | | — | | | | 0.12 | | | | 0.18 | | | | — | |
| Total distributions | | $ | | | 0.67 | | | | 0.61 | | | | 0.06 | | | | 0.59 | | | | 0.56 | | | | 0.04 | |
| Net asset value, end of period | | $ | | | 10.85 | | | | 10.59 | | | | 10.25 | | | | 10.83 | | | | 10.55 | | | | 10.24 | |
Total Return(2) | | % | | | 8.91 | | | | 9.61 | | | | 3.13 | | | | 8.43 | | | | 8.74 | | | | 2.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 79,230 | | | | 28,887 | | | | 25,784 | | | | 3,429 | | | | 342 | | | | 28 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 0.95 | | | | 1.46 | | | | 1.38 | | | | 1.70 | | | | 2.21 | | | | 2.13 | |
Net expenses after expense waiver(3)(4) | | % | | | 0.91 | † | | | 0.90 | † | | | 0.90 | | | | 1.66 | † | | | 1.65 | † | | | 1.65 | |
Net investment income after expense waiver(3)(4) | | % | | | 2.74 | | | | 3.08 | | | | 2.41 | | | | 1.92 | | | | 2.44 | | | | 2.00 | |
| Portfolio turnover rate | | % | | | 453 | | | | 858 | | | | 451 | | | | 453 | | | | 858 | | | | 451 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | June 30,
| | Six Months
| | Year
| | June 30,
|
| | | | | Ended
| | Ended
| | 2006(1) to
| | Ended
| | Ended
| | 2006(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 10.59 | | | | 10.24 | | | | 10.00 | | | | 10.58 | | | | 10.25 | | | | 10.00 | |
| Income from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.10 | * | | | 0.24 | * | | | 0.06 | * | | | 0.22 | * | | | 0.35 | * | | | 0.09 | * |
| Net realized and unrealized gain on investments, foreign currency related transactions, and futures | | $ | | | 0.78 | | | | 0.64 | | | | 0.22 | | | | 0.75 | | | | 0.63 | | | | 0.23 | |
| Total from investment operations | | $ | | | 0.88 | | | | 0.88 | | | | 0.28 | | | | 0.97 | | | | 0.98 | | | | 0.32 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.48 | | | | 0.35 | | | | 0.04 | | | | 0.61 | | | | 0.47 | | | | 0.07 | |
| Net realized gains on investments | | $ | | | 0.12 | | | | 0.18 | | | | — | | | | 0.12 | | | | 0.18 | | | | — | |
| Total distributions | | $ | | | 0.60 | | | | 0.53 | | | | 0.04 | | | | 0.73 | | | | 0.65 | | | | 0.07 | |
| Net asset value, end of period | | $ | | | 10.87 | | | | 10.59 | | | | 10.24 | | | | 10.82 | | | | 10.58 | | | | 10.25 | |
Total Return(2) | | % | | | 8.46 | | | | 8.90 | | | | 2.82 | | | | 9.39 | | | | 9.88 | | | | 3.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 23,254 | | | | 1,627 | | | | 36 | | | | 1,319 | | | | 1 | | | | 1 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3) | | % | | | 1.70 | | | | 2.21 | | | | 2.13 | | | | 0.68 | | | | 1.00 | | | | 1.03 | |
Net expenses after expense waiver(3)(4) | | % | | | 1.66 | † | | | 1.65 | † | | | 1.65 | | | | 0.64 | † | | | 0.61 | † | | | 0.55 | |
Net investment income after expense waiver(3)(4) | | % | | | 1.89 | | | | 2.33 | | | | 1.68 | | | | 4.15 | | | | 3.47 | | | | 2.68 | |
| Portfolio turnover rate | | % | | | 453 | | | | 858 | | | | 451 | | | | 453 | | | | 858 | | | | 451 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
| |
| † | | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio. |
See Accompanying Notes to Financial Statements
117
ING Diversified International Fund (Unaudited)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class A | | Class B |
| | | | | Six Months
| | Year
| | December 21,
| | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2005(1) to
| | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.98 | | | | 11.61 | | | | 10.00 | | | | 14.84 | | | | 11.54 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.15 | * | | | 0.05 | * | | | (0.03 | )* | | | 0.10 | * | | | (0.04 | ) | | | (0.10 | )* |
| Net realized and unrealized gain (loss) on investments in affiliates | | $ | | | (1.75 | ) | | | 3.38 | | | | 1.64 | | | | (1.73 | ) | | | 3.35 | | | | 1.64 | |
| Total from investment operations | | $ | | | (1.60 | ) | | | 3.43 | | | | 1.61 | | | | (1.63 | ) | | | 3.31 | | | | 1.54 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.26 | | | | 0.06 | | | | — | | | | 0.17 | | | | 0.01 | | | | — | |
| Net realized gains on investments | | $ | | | 0.09 | | | | — | | | | — | | | | 0.09 | | | | — | | | | — | |
| Total distributions | | $ | | | 0.35 | | | | 0.06 | | | | — | | | | 0.26 | | | | 0.01 | | | | — | |
| Net asset value, end of period | | $ | | | 13.03 | | | | 14.98 | | | | 11.61 | | | | 12.95 | | | | 14.84 | | | | 11.54 | |
Total Return(2) | | % | | | (10.82 | ) | | | 29.66 | | | | 16.10 | | | | (11.09 | ) | | | 28.68 | | | | 15.40 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 365,180 | | | | 383,364 | | | | 170,108 | | | | 39,652 | | | | 43,667 | | | | 23,035 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(4)(5) | | % | | | 0.47 | | | | 0.55 | | | | 0.66 | | | | 1.22 | | | | 1.30 | | | | 1.41 | |
Net expenses after expense waiver(3)(4)(5) | | % | | | 0.29 | | | | 0.21 | | | | 0.35 | | | | 1.04 | | | | 0.96 | | | | 1.10 | |
Net investment income (loss) after expense waiver(3)(4)(5) | | % | | | 2.26 | | | | 0.37 | | | | (0.35 | ) | | | 1.51 | | | | (0.34 | ) | | | (1.10 | ) |
| Portfolio turnover rate | | % | | | 24 | | | | 32 | | | | 30 | | | | 24 | | | | 32 | | | | 30 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Class C | | Class I |
| | | | | Six Months
| | Year
| | December 21,
| | Six Months
| | Year
| | December 21,
|
| | | | | Ended
| | Ended
| | 2005(1) to
| | Ended
| | Ended
| | 2005(1) to
|
| | | | | April 30,
| | October 31,
| | October 31,
| | April 30,
| | October 31,
| | October 31,
|
| | | | | 2008 | | 2007 | | 2006 | | 2008 | | 2007 | | 2006 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.83 | | | | 11.54 | | | | 10.00 | | | | 14.99 | | | | 11.63 | | | | 10.00 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.10 | * | | | (0.05 | )* | | | (0.10 | )* | | | 0.17 | | | | 0.03 | * | | | (0.01 | )* |
| Net realized and unrealized gain (loss) on investments in affiliates | | $ | | | (1.73 | ) | | | 3.35 | | | | 1.64 | | | | (1.76 | ) | | | 3.41 | | | | 1.64 | |
| Total from investment operations | | $ | | | (1.63 | ) | | | 3.30 | | | | 1.54 | | | | (1.59 | ) | | | 3.44 | | | | 1.63 | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.18 | | | | 0.01 | | | | — | | | | 0.28 | | | | 0.08 | | | | — | |
| Net realized gains on investments | | $ | | | 0.09 | | | | — | | | | — | | | | 0.09 | | | | — | | | | — | |
| Total distributions | | $ | | | 0.27 | | | | 0.01 | | | | — | | | | 0.37 | | | | 0.08 | | | | — | |
| Net asset value, end of period | | $ | | | 12.93 | | | | 14.83 | | | | 11.54 | | | | 13.03 | | | | 14.99 | | | | 11.63 | |
Total Return(2) | | % | | | (11.10 | ) | | | 28.63 | | | | 15.40 | | | | (10.70 | ) | | | 29.69 | | | | 16.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 160,478 | | | | 168,661 | | | | 69,825 | | | | 28 | | | | 32 | | | | 4 | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(4)(5) | | % | | | 1.22 | | | | 1.30 | | | | 1.41 | | | | 0.22 | | | | 0.30 | | | | 0.45 | |
Net expenses after expense waiver(3)(4)(5) | | % | | | 1.04 | | | | 0.96 | | | | 1.10 | | | | 0.04 | | | | 0.09 | | | | 0.10 | |
Net investment income (loss) after expense waiver(3)(4)(5) | | % | | | 1.52 | | | | (0.39 | ) | | | (1.10 | ) | | | 2.57 | | | | 0.21 | | | | (0.13 | ) |
| Portfolio turnover rate | | % | | | 24 | | | | 32 | | | | 30 | | | | 24 | | | | 32 | | | | 30 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized. |
| |
| (3) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| (4) | | Annualized for periods less than one year. |
| |
| (5) | | Expense ratios do not include expenses of Underlying Funds. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
118
ING Diversified International Fund (Unaudited) (continued)
Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period.
| | | | | | | | | | | | | | | |
| | | | | Class R | | Class W |
| | | | | Six Months
| | December 12,
| | February 12,
|
| | | | | Ended
| | 2006(1) to
| | 2008(1) to
|
| | | | | April 30,
| | October 31,
| | April 30,
|
| | | | | 2008 | | 2007 | | 2008 |
| |
|
Per Share Operating Performance: | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | | | 14.82 | | | | 12.19 | | | | 12.17 | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | |
| Net investment income (loss) | | $ | | | 0.14 | | | | (0.05 | )* | | | 0.01 | |
| Net realized and unrealized gain (loss) on investments in affiliates | | $ | | | (1.74 | ) | | | 2.76 | | | | 0.85 | |
| Total from investment operations | | $ | | | (1.60 | ) | | | 2.71 | | | | 0.86 | |
| Less distributions from: | | | | | | | | | | | | | | |
| Net investment income | | $ | | | 0.22 | | | | 0.08 | | | | — | |
| Net realized gains on investments | | $ | | | 0.09 | | | | — | | | | — | |
| Total distributions | | $ | | | 0.31 | | | | 0.08 | | | | — | |
| Net asset value, end of period | | $ | | | 12.91 | | | | 14.82 | | | | 13.03 | |
Total Return(2) | | % | | | (10.92 | ) | | | 22.33 | | | | 7.07 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Ratios and Supplemental Data: | | | | | | | | | | | | | | |
| Net assets, end of period (000’s) | | $ | | | 345 | | | | 432 | | | | 707 | |
| Ratios to average net assets: | | | | | | | | | | | | | | |
Gross expenses prior to expense waiver(3)(5) | | % | | | 0.72 | | | | 0.80 | | | | 0.22 | |
Net expenses after expense waiver(3)(4)(5) | | % | | | 0.54 | | | | 0.46 | | | | 0.04 | |
Net investment loss after expense waiver(3)(4)(5) | | % | | | 2.11 | | | | (0.46 | ) | | | 0.52 | |
| Portfolio turnover rate | | % | | | 24 | | | | 32 | | | | 24 | |
|
| | |
| (1) | | Commencement of operations. |
| |
| (2) | | Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized. |
| |
| (3) | | Annualized for periods less than one year. |
| |
| (4) | | The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
| |
| (5) | | Expense ratios do not include expenses of Underlying Funds. |
| |
| * | | Calculated using average number of shares outstanding throughout the period. |
See Accompanying Notes to Financial Statements
119
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 twenty-two separate active series, all of which are included in this report, (each, a “Fund” and collectively, the “IMF Funds”): ING Global Equity Dividend Fund (“Global Equity Dividend”), ING Global Natural Resources Fund (“Global Natural Resources”), ING Global Real Estate Fund (“Global Real Estate”), ING Global Value Choice Fund (“Global Value Choice”), ING Asia-Pacific Real Estate Fund (Asia-Pacific Real Estate), ING Disciplined International SmallCap Fund (“Disciplined International SmallCap”), ING Emerging Countries Fund (“Emerging Countries”), ING European Real Estate Fund (European Real Estate), ING Foreign Fund (“Foreign”), ING Greater China Fund (“Greater China”), ING Index Plus International Equity Fund (“Index Plus International Equity”), ING International Capital Appreciation Fund (“International Capital Appreciation”), ING International Equity Dividend Fund (“International Equity Dividend”), ING International Growth Opportunities Fund (“International Growth Opportunities”), ING International Real Estate Fund (“International Real Estate”), ING International SmallCap Multi-Manager Fund (“International SmallCap Multi-Manager”), ING International Value Choice Fund (“International Value Choice”), ING International Value Opportunities Fund (“International Value Opportunities”), ING Russia Fund (“Russia”), ING Emerging Markets Fixed Income Fund (“Emerging Markets Fixed Income”), ING Global Bond Fund (“Global Bond”) and ING Diversified International Fund (“Diversified International”). IMT is a Massachusetts business trust organized August 18, 1993 with one series, ING International Value Fund (“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 Fund offers at least one or more of the following classes of shares: Class A, Class B, Class C, Class I, Class O, Class Q, 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 relative daily 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, along with their pro rata reinvested dividend shares, automatically convert to Class A shares eight years after purchase.
International Value is closed to new investments except for shares purchased: (1) through the reinvestment of dividends and distributions; (2) by 401(k), 403(b) and 457 plans that have selected International Value as an investment option prior to June 28, 2002; (3) by shareholders participating in mutual fund wrap fee programs who were invested in International Value prior to June 28, 2002; (4) by new 401(k), 403(b) and 457 plans and new shareholders participating in mutual fund wrap fee programs subject to approval by the Investment Adviser and Sub-Adviser based on their assessment of the Fund’s ability to invest the monies consistent with the Fund’s objectives in light of market conditions, the size of the purchase, and other relevant factors relating to International Value; (5) by certain institutional and separately managed account investors that are pre-existing clients of the Sub-Adviser; and (6) by employees of the Investment Adviser or Sub-Adviser and their affiliates. Proof of eligibility may be required. Institutional and separately managed account investors that are pre-existing clients of the Sub-Adviser and employees of the Investment Adviser or Sub-Adviser and their affiliates must identify themselves as such at the time of purchase. Failure to do so may result in a rejection of the purchase. The Fund may reopen in the future subject to the discretion of the Board of Trustees of IMT.
120
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 1 — ORGANIZATION (continued)
Effective January 2, 2007, Class M shareholders of Emerging Countries were converted to Class A shares of Emerging Countries. In addition, 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.
Diversified International seeks to achieve its investment objective by investing in other ING Funds (“Underlying Funds”) and uses asset allocation strategies to determine how much to invest in the Underlying Funds.
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 are valued at prices obtained from independent services or from one or more dealers making markets in the securities and may be adjusted based on the Funds’ valuation procedures. U.S. government obligations are valued by using market quotations or independent pricing services that use prices provided by market-makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. |
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 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 determined in good faith by or under the supervision of a Funds’ 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.
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
121
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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 securities do not represent readily available reliable market value quotations at the time the 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 the Fund’s NAV. Investments in securities maturing in 60 days or less are valued at amortized cost, which, when combined with accrued interest approximates market value.
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 in securities maturing in 60 days or less are valued at amortized cost, which 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.
| |
| 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 are recorded as distributions of realized gains from affiliated Underlying Funds.
122
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
Global Real Estate and International Real Estate estimate 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. |
| |
| | (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 or an Underlying 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. | Foreign Currency Transactions and Futures Contracts. Each Fund and Underlying Fund may enter into 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 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. |
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
123
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
| |
| E. | 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 Emerging Markets Fixed Income and Global Bond, which pay dividends 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. |
| |
| F. | Federal Income Taxes. It is the policy of the Funds to comply with subchapter M of the Internal Revenue Code and related excise tax provisions applicable to regulated investment companies and to distribute substantially all of their net investment income and any net realized capital gains to their shareholders. Therefore, no federal income tax provision is required. No capital gain distributions shall be made until any 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.
| |
| G. | 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. |
| |
| H. | Organization Expenses and Offering Costs. Costs incurred with the organization of the Funds and Underlying Funds are expensed as incurred. Costs incurred with the offering of shares of the Funds and Underlying Funds are deferred and amortized over a twelve-month period on a straight-line basis. |
| |
| I. | 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. |
| |
| J. | Securities Lending. Each Fund and Underlying Fund has the option to temporarily loan up to 30% 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 |
124
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
| |
| 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 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. |
| |
| K. | Options Contracts. All Funds and Underlying Funds may purchase put and call options and may write (sell) put options and covered call options. The Funds and Underlying Funds may engage in option transactions as a hedge against adverse movements in the value of portfolio holdings or to increase market exposure. Option contracts are valued daily and unrealized gains or losses are recorded based upon the last sales price on the principal exchange on which the options are traded. The Funds and Underlying Funds will realize a gain or loss upon the expiration or closing of the option contract. When an option is exercised, the proceeds on sales of the underlying security for a written call option, the purchase cost of the security for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Realized and unrealized gains or losses on option contracts are reflected in the accompanying financial statements. The value of an option purchased or written is marked to market daily and is valued at the closing price on the exchange on which it is traded or, if not traded on an exchange or no closing price is available, at the mean between last bid and asked prices. The risk in writing a covered call option is that the Funds and Underlying Funds give up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Funds and Underlying Funds may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Funds and Underlying Funds pay a premium whether or not the option is exercised. Risks may also arise from an illiquid secondary market or from the inability of counterparties to meet the terms of the contract. |
| |
| L. | Swap Contracts. Certain Funds and Underlying Funds may enter into interest rate swaps, currency swaps and other types of swap agreements, including swaps on securities and indices. A swap is an agreement between two parties pursuant to which each party agrees to make one or more payments to the other on regularly scheduled dates over a stated term, based on different interest rates, currency exchange rates, security prices, the prices or rates of other types of financial instruments or assets or the levels of specified indices. During the term of the swap, changes in the value of the swap are recognized as unrealized appreciation or depreciation. |
| |
| 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 |
125
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
| |
| 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. |
NOTE 3 — INVESTMENT TRANSACTIONS
For the six months ended April 30, 2008, the cost of purchases and the proceeds from the sales of securities, excluding U.S. government and short-term securities, were as follows:
| | | | | | | | | |
| | | Non U.S. Government |
| | | Purchases | | Sales |
| |
| Global Equity Dividend | | $ | 47,726,190 | | | $ | 107,825,609 | |
| Global Natural Resources | | | 113,910,108 | | | | 120,064,236 | |
| Global Real Estate | | | 486,627,576 | | | | 295,680,350 | |
| Global Value Choice | | | 39,141,177 | | | | 43,006,812 | |
| Asia-Pacific Real Estate | | | 7,778,269 | | | | 2,037,313 | |
| Disciplined International SmallCap | | | 234,734,623 | | | | 261,188,368 | |
| Emerging Countries | | | 47,626,461 | | | | 88,618,862 | |
| European Real Estate | | | 10,285,557 | | | | 4,230,938 | |
| Foreign | | | 225,711,836 | | | | 236,122,922 | |
| Greater China | | | 56,306,302 | | | | 68,080,189 | |
| Index Plus International Equity | | | 373,598,200 | | | | 195,281,891 | |
| International Capital Appreciation | | | 56,245,413 | | | | 40,487,203 | |
| International Equity Dividend | | | 20,971,949 | | | | 8,295,638 | |
| International Growth Opportunities | | | 89,983,645 | | | | 96,442,510 | |
| International Real Estate | | | 341,515,421 | | | | 126,936,762 | |
| International SmallCap Multi-Manager | | | 356,700,084 | | | | 458,763,059 | |
| International Value | | | 537,944,358 | | | | 1,178,345,997 | |
| International Value Choice | | | 24,762,038 | | | | 28,759,704 | |
| International Value Opportunities | | | 1,785,862 | | | | 1,993,458 | |
| Russia | | | 223,026,163 | | | | 244,229,540 | |
| Emerging Markets Fixed Income | | | 60,040,319 | | | | 58,004,752 | |
| Global Bond | | | 44,215,523 | | | | 28,492,068 | |
| Diversified International | | | 177,833,363 | | | | 134,665,264 | |
Purchase and sales of long-term U.S. government securities not included above were as follows:
| | | | | | | | | |
| | | Purchases | | Sales |
| |
| Global Bond | | $ | 230,444,986 | | | $ | 214,517,237 | |
NOTE 4 — REDEMPTION FEES
A 2% redemption fee is charged on shares of Russia that are redeemed (included 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, 2008 and year ended October 31, 2007 were $322,893 and $3,086,432, 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 Investment Adviser with a fee, computed daily and payable monthly, based on the average daily net assets of each Fund, at the following annual rates:
| | | |
| | | As a Percentage of Average 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(1) | | 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 |
| Disciplined International SmallCap | | 0.60% |
| Emerging Countries | | 1.25% |
| European Real Estate | | 1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% thereafter |
| Foreign(2) | | 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 | | 0.85% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter |
| International Equity Dividend | | 0.75% |
| International Growth Opportunities | | 1.00% |
| 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 | | 1.00% on first $500 million;
0.90% on next $500 million; and
0.85% thereafter |
| International Value | | 1.00% |
| International Value Choice | | 1.00% |
| International Value Opportunities | | 0.80% on first $1 billion; and
0.75% thereafter |
| Russia | | 1.25% |
| Emerging Markets Fixed Income | | 0.65% on the first $250 million; 0.60% on the next $250 million; and 0.55% thereafter |
| Global Bond | | 0.40% |
| Diversified International | | 0.00% |
126
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
| |
| (1) | Prior to January 2, 2008, the fee was 1.00% on the first $250 million, 0.90% on the next $250 million, 0.80% on the next $500 million, and 0.75% thereafter. |
| |
| (2) | Effective July 31, 2007, ING Investments has contractually agreed to waive a portion of the advisory fee for ING Foreign Fund. This advisory fee waiver will continue through at least May 1, 2009. There is no guarantee that this waiver will continue after this date. This agreement will only renew if ING Investments elects to renew it. |
ING Investments has contractually agreed to waive a portion of the advisory fee for Foreign. 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, 2008, ING Investments waived $16,587 for Foreign.
ING Investment Management Advisors B.V. (“IIMA”), a registered investment adviser, serves as the Sub-Adviser to Global Equity Dividend, Index Plus International Equity, International Equity Dividend, International Value Opportunities, Russia and Emerging Markets Fixed Income pursuant to a sub-advisory agreement between the Investment Adviser and IIMA.
ING Clarion Real Estate Securities L.P. (“ING CRES”) a registered investment adviser, serves as the Sub-Adviser to Asia-Pacific Real Estate, European Real Estate, Global Real Estate and International Real Estate pursuant to a sub-advisory agreement between the Investment Adviser and ING CRES.
Tradewinds Global Investors, LLC (“Tradewinds”), a registered investment adviser, serves as the Sub-Adviser to Global Value Choice and International Value Choice pursuant to a sub-advisory agreement between the Investment Adviser and Tradewinds.
Brandes Investment Partners, L.P. (“Brandes”), a registered investment adviser, serves as the Sub-Adviser to Emerging Countries and International Value pursuant to a sub-advisory agreement between the Investment Adviser and Brandes.
Artio Global Investment Management LLC (whose name changed on June 15, 2008 from Julius Baer Investment Management LLC), a registered investment adviser, serves as Sub-Adviser to Foreign pursuant to a sub-advisory agreement between the Investment Adviser and the sub-adviser.
ING Investment Management Co. (“ING IM”), a registered investment adviser, serves as sub-adviser to Disciplined International SmallCap, Global Natural Resources, International Growth Opportunities and Global Bond pursuant to a sub-advisory agreement between the Investment Adviser and ING IM.
Acadian Asset Management, Inc. (“Acadian”), a registered investment adviser, serves as one of the Sub-Advisers to International SmallCap Multi-Manager pursuant to a sub-advisory agreement between the Investment Adviser and Acadian. Batterymarch Financial Management, Inc. (“Batterymarch”) serves as the second Sub-Adviser to International SmallCap Multi-Manager pursuant to a sub-advisory agreement between the Investment Adviser and Batterymarch. Schroder Investment Management North America, Inc. (“Schroders”), serves as the third Sub-Adviser to International SmallCap Multi-Manager pursuant to a sub-advisory agreement between the Investment Adviser and Schroders.
ING Investment Management Asia/Pacific (Hong Kong) Limited (“ING Asia”), a registered investment adviser, serves as the Sub-Adviser to Greater China pursuant to a sub-advisory agreement between the Investment Adviser and ING Asia.
Hansberger Global Investors, Inc. (“HGI”), a registered investment adviser, serves as the Sub-Adviser to International Capital Appreciation pursuant to a sub-advisory agreement between the Investment Adviser and HGI.
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 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, 2008, Global Natural Resources, Index Plus
127
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
International Equity, International Growth Opportunities and Global Bond waived $141, $57, $1,209 and $5,095 of such management fees, respectively. These fees are not subject to recoupment.
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.
International Value also 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 one of the largest financial services organizations in the world, and offers an array of banking, insurance and asset management services to both individual and institutional investors.
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 Funds’ 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 Q | | Class R |
| |
| Global Equity Dividend | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | | | | N/A | |
| Global Natural Resources | | | 0.25% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Global Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | | | | N/A | |
| Global Value Choice | | | 0.25% | (1) | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | 0.25 | % | | | N/A | |
| Asia-Pacific Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Disciplined International SmallCap | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Emerging Countries | | | 0.35% | (2) | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | 0.25 | % | | | N/A | |
| European Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Foreign | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | 0.25 | % | | | N/A | |
| Greater China | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Index Plus International Equity | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | | | | N/A | |
| International Capital Appreciation | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| International Equity Dividend | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| International Growth Opportunities | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | 0.25 | % | | | N/A | |
| International Real Estate | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| International SmallCap Multi-Manager | | | 0.35% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | 0.25 | % | | | N/A | |
| International Value | | | 0.30% | | | | 1.00 | % | | | 1.00 | %(3) | | | N/A | | | | 0.25 | %(3) | | | N/A | |
| International Value Choice | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| International Value Opportunities | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Russia | | | 0.25% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Emerging Markets Fixed Income | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Global Bond | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | |
| Diversified International | | | 0.25% | | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | 0.50 | % |
| |
| (1) | Prior to January 2, 2008 the fee for Global Value Choice Class A was 0.35%. |
| |
| (2) | 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, 2008 through December 31, 2008. Previously, the Distributor had agreed to waive 0.10% of the Distribution Fee for Class A shares of Emerging Countries for the period from January 1, 2007 through December 31, 2007. |
| |
| (3) | The Distributor has agreed to waive 0.25% of the Distribution Fee for Class Q shares and a portion of the Distribution Fee for Class C shares of International Value for the period from January 1, 2007 through December 31, 2007. |
Fees paid to the Distributor by class during the year ended April 30, 2008 are shown in the accompanying Statements of Operations. The Distributor voluntarily waived $29,658 of 12b-1 fees for International Growth Opportunities of Class Q shares.
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, 2008, the Distributor
128
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 6 — DISTRIBUTION AND SERVICE FEES (continued)
retained the following amounts in sales charges for the Funds:
| | | | | | | | | |
| | | Class A
| | Class C
|
| | | Shares | | Shares |
| |
Initial Sales Charges: | | | | | | | | |
| Global Equity Dividend | | $ | 20,234 | | | | N/A | |
| Global Natural Resources | | | 20,389 | | | | N/A | |
| Global Real Estate | | | 103,923 | | | | N/A | |
| Global Value Choice | | | 6,807 | | | | N/A | |
| Asia-Pacific Real Estate | | | 1,091 | | | | N/A | |
| Disciplined International SmallCap | | | 71 | | | | N/A | |
| Emerging Countries | | | 18,650 | | | | N/A | |
| European Real Estate | | | 1,614 | | | | N/A | |
| Foreign | | | 30,757 | | | | N/A | |
| Greater China | | | 24,282 | | | | N/A | |
| Index Plus International Equity | | | 930 | | | | N/A | |
| International Capital Appreciation | | | 3,680 | | | | N/A | |
| International Equity Dividend | | | 1,614 | | | | N/A | |
| International Growth Opportunities | | | 3,729 | | | | N/A | |
| International Real Estate | | | 19,599 | | | | N/A | |
| International SmallCap Multi-Manager | | | 18,983 | | | | N/A | |
| International Value | | | 421 | | | | N/A | |
| International Value Choice | | | 2,044 | | | | N/A | |
| International Value Opportunities | | | 242 | | | | N/A | |
| Russia | | | 279,465 | | | | N/A | |
| Emerging Markets Fixed Income | | | 792 | | | | N/A | |
| Global Bond | | | 20,473 | | | | N/A | |
| Diversified International | | | 103,421 | | | | N/A | |
Contingent Deferred Sales Charges: | | | | | | | | |
| Global Equity Dividend | | | 1,132 | | | | 9,453 | |
| Global Natural Resources | | | — | | | | — | |
| Global Real Estate | | | 3,759 | | | | 64,324 | |
| Global Value Choice | | | — | | | | 586 | |
| Asia-Pacific Real Estate | | | — | | | | — | |
| Disciplined International SmallCap | | | — | | | | 274 | |
| Emerging Countries | | | 2,298 | | | | 4,394 | |
| European Real Estate | | | — | | | | — | |
| Foreign | | | 4,752 | | | | 7,301 | |
| Greater China | | | 1,026 | | | | 5,080 | |
| Index Plus International Equity | | | — | | | | 246 | |
| International Capital Appreciation | | | — | | | | 32 | |
| International Equity Dividend | | | — | | | | — | |
| International Growth Opportunities | | | — | | | | 426 | |
| International Real Estate | | | 8,919 | | | | 20,962 | |
| International SmallCap Multi-Manager | | | 2,988 | | | | 11,812 | |
| International Value | | | 2,429 | | | | 115 | |
| International Value Choice | | | 25 | | | | 304 | |
| International Value Opportunities | | | — | | | | — | |
| Russia | | | — | | | | — | |
| Emerging Markets Fixed Income | | | — | | | | 244 | |
| Global Bond | | | — | | | | 3,214 | |
| Diversified International Fund | | | 4,350 | | | | 22,994 | |
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At April 30, 2008, 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
| | | | |
| | | Accrued
| | | | Shareholder
| | | | |
| | | Investment
| | Accrued
| | Service and
| | | | |
| | | Management
| | Administrative
| | Distribution
| | Accrued
| | |
Portfolio | | Fees | | Fees | | Fees | | Recoupment | | Total |
| |
| Global Equity Dividend | | $ | 165,097 | | | $ | 23,585 | | | $ | 143,299 | | | $ | — | | | $ | 331,981 | |
| Global Natural Resources | | | 103,986 | | | | 12,501 | | | | 31,252 | | | | — | | | | 147,739 | |
| Global Real Estate | | | 923,378 | | | | 126,786 | | | | 464,998 | | | | — | | | | 1,515,162 | |
| Global Value Choice | | | 89,676 | | | | 9,964 | | | | 28,034 | | | | 161 | | | | 127,835 | |
| Asia-Pacific Real Estate | | | 3,854 | | | | 385 | | | | 1,051 | | | | — | | | | 5,290 | |
| Disciplined International SmallCap | | | 208,201 | | | | 34,700 | | | | 33 | | | | — | | | | 242,934 | |
| Emerging Countries | | | 275,836 | | | | 22,067 | | | | 88,063 | | | | — | | | | 385,966 | |
| European Real Estate | | | 4,931 | | | | 493 | | | | 1,310 | | | | — | | | | 6,734 | |
| Foreign | | | 540,580 | | | | 55,510 | | | | 265,498 | | | | — | | | | 861,588 | |
| Greater China | | | 57,021 | | | | 4,958 | | | | 19,860 | | | | — | | | | 81,839 | |
| Index Plus International Equity | | | 122,731 | | | | 22,314 | | | | 25,888 | | | | 1,319 | | | | 172,252 | |
| International Capital Appreciation | | | 100,548 | | | | 11,829 | | | | 2,553 | | | | 27,218 | | | | 142,148 | |
| International Equity Dividend | | | 33,010 | | | | 4,401 | | | | 2,242 | | | | — | | | | 39,653 | |
| International Growth Opportunities | | | 101,354 | | | | 10,151 | | | | 39,786 | | | | — | | | | 151,291 | |
| International Real Estate | | | 476,826 | | | | 51,918 | | | | 128,336 | | | | 36,602 | | | | 693,682 | |
| International SmallCap Multi-Manager | | | 685,196 | | | | 71,578 | | | | 218,380 | | | | — | | | | 975,154 | |
| International Value | | | 3,370,749 | | | | 337,070 | | | | 1,058,822 | | | | — | | | | 4,766,641 | |
| International Value Choice | | | 62,960 | | | | 6,296 | | | | 9,350 | | | | — | | | | 78,606 | |
| International Value Opportunities | | | 6,070 | | | | 759 | | | | 1,932 | | | | — | | | | 8,761 | |
| Russia | | | 913,934 | | | | 73,114 | | | | 182,787 | | | | — | | | | 1,169,835 | |
| Emerging Markets Fixed Income | | | 160,335 | | | | 25,014 | | | | 2,850 | | | | — | | | | 188,199 | |
| Global Bond | | | 32,020 | | | | 8,315 | | | | 36,437 | | | | 804 | | | | 77,576 | |
| Diversified International | | | — | | | | 45,685 | | | | 235,049 | | | | — | | | | 280,734 | |
At April 30, 2008, the following indirect, wholly owned subsidiaries of ING Groep owned the following Funds:
ING Diversified International Fund — Foreign (15.12%); Index Plus International Equity (46.47%); International Capital Appreciation (95.35%); International Equity Dividend (89.77%); International SmallCap Multi-Manager (6.05%); and International Value Choice (64.05%).
ING Life Insurance and Annuity Company — Asia-Pacific Real Estate (80.40%); European Real Estate (77.00%); Global Bond (24.43%); Greater China (12.52%); International SmallCap Multi-Manager (6.56%); and International Value Opportunities (98.81%).
ING LifeStyle Aggressive Growth Portfolio — Disciplined International SmallCap (17.69%).
ING LifeStyle Growth Portfolio — Disciplined International SmallCap (42.23%) and Emerging Markets Fixed Income (42.16%).
ING LifeStyle Moderate Growth Portfolio — Disciplined International SmallCap (28.94%) and Emerging Markets Fixed Income (33.32%).
129
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (continued)
ING LifeStyle Moderate Portfolio — Disciplined International SmallCap (11.11%) and Emerging Markets Fixed Income (22.15%).
ING Luxembourg SA — International Real Estate (6.49%).
ING National Trust — International Growth Opportunities (17.93%).
ING Strategic Allocation Growth Fund — Index Plus International Equity (6.40%).
ING Strategic Allocation Moderate Fund — Index Plus International Equity (5.34%).
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. 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 Registrants have adopted a Retirement Policy covering all independent trustees of the Funds who will have served as an independent trustee for at least five years at the time of retirement. Benefits under this plan are based on an annual rate as defined in the plan agreement.
The following Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were:
| | | | | | | |
| | | Affiliated
| | Commissions
|
Fund | | Brokers | | Received |
| |
| Global Real Estate | | ING Baring LLC | | $ | 46,575 | |
| Asia-Pacific Real Estate | | ING Baring LLC | | | 1,016 | |
| Emerging Countries | | ING Baring LLC | | | 4,169 | |
| Foreign | | ING Baring LLC | | | 3,178 | |
| | | ING Securities | | | 5,428 | |
| Greater China | | ING Baring LLC | | | 14,815 | |
| International Real Estate | | ING Baring LLC | | | 35,653 | |
NOTE 8 — OTHER ACCRUED EXPENSES AND LIABILITIES
At April 30, 2008, the Funds had the following payables included in Other Accrued Expenses and Liabilities on the Statement of Assets and Liabilities that exceeded 5% of total liabilities:
| | | | | | | |
| | | Accrued
| | |
Fund | | Expense | | Amount |
| |
| European Real Estate | | Audit | | $ | 7,951 | |
| Greater China | | Transfer Agent | | | 23,648 | |
NOTE 9 — EXPENSE LIMITATIONS
The Investment Adviser has agreed to limit expenses, excluding interest expenses, 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 Q | | Class R | | Class W |
| |
| Global Equity Dividend | | | 1.40 | % | | | 2.15 | % | | | 2.15 | % | | | 1.15 | % | | | 1.40 | % | | | N/A | | | | N/A | | | | 1.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Global Natural Resources | | | 2.75 | % | | | N/A | | | | N/A | | | | 2.50 | % | | | N/A | | | | N/A | | | | N/A | | | | 2.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Global Real Estate | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | 1.75 | % | | | N/A | | | | N/A | | | | 1.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Global Value Choice(1) | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | 1.50 | % | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asia-Pacific Real Estate | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Disciplined International SmallCap | | | 1.20 | % | | | 1.95 | % | | | 1.95 | % | | | 0.95 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries(2) | | | 2.25 | % | | | 2.90 | % | | | 2.90 | % | | | 1.90 | % | | | N/A | | | | 2.15 | % | | | N/A | | | | 1.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| European Real Estate | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign(3) | | | 1.95 | % | | | 2.70 | % | | | 2.70 | % | | | 1.60 | % | | | N/A | | | | 1.85 | % | | | N/A | | | | 1.45 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Greater China(4) | | | N/A | | | | 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 | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International Capital Appreciation | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International Equity Dividend | | | 1.40 | % | | | 2.15 | % | | | 2.15 | % | | | 1.15 | % | | | N/A | | | | N/A | | | | N/A | | | | 1.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
International Growth Opportunities(5) | | | 2.75 | % | | | 3.50 | % | | | 3.50 | % | | | 2.50 | % | | | N/A | | | | 2.75 | % | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International Real Estate | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | N/A | | | | 1.25 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International SmallCap Multi-Manager | | | 1.95 | % | | | 2.60 | % | | | 2.60 | % | | | 1.40 | % | | | N/A | | | | 1.85 | % | | | N/A | | | | 1.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International Value | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International Value Choice | | | 1.70 | % | | | 2.45 | % | | | 2.45 | % | | | 1.45 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| International Value Opportunities | | | 1.40 | % | | | 2.15 | % | | | 2.15 | % | | | 1.15 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Russia | | | 3.35 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Emerging Markets Fixed Income | | | 1.25 | % | | | 2.00 | % | | | 2.00 | % | | | 1.00 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Global Bond | | | 0.90 | % | | | 1.65 | % | | | 1.65 | % | | | 0.61 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diversified International(6) | | | 0.35 | % | | | 1.10 | % | | | 1.10 | % | | | 0.10 | % | | | N/A | | | | N/A | | | | 0.60 | % | | | 0.10 | % |
| |
| (1) | Prior to January 2, 2008, Global Value Choice limits were 1.85%, 2.50%, 2.50%, 1.50%, and 1.75% for Classes A, B, C, I and Q respectively. |
| |
| (2) | Effective January 1, 2008, pursuant to a side agreement, ING Investments has lowered the expense limits for Emerging Countries through at least March 1, 2009. The expense limits for Emerging Countries are 2.10%, 2.85%, 2.85% and 2.10% |
130
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 9 — EXPENSE LIMITATIONS (continued)
| |
| for Class A, B, C and Q shares, respectively. If, after March 1, 2009, 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 dated March 1, 2008, ING Investments has lowered the expense limits for Foreign through at least March 1, 2009. The expense limits for the Foreign are 1.70%, 2.45%, 2.45%, 1.35% and 1.60% for Class A, B, C, I and Q shares, respectively. If, after March 1, 2009, 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 dated November 1, 2007, the expense limits for Greater China are 2.10%, 2.85%, 2.85% and 1.85% for Class A, B, C and I shares, respectively, through March 1, 2009. 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) | Pursuant to a side agreement dated March 1, 2008, ING Investments has lowered the expense limits for International Growth Opportunities through at least March 1, 2009. The expense limits for International Growth Opportunities are 1.95%, 2.70%, 2.70%, 1.60% and 1.85% for Class A, B, C, I and Q shares, respectively. If, after March 1, 2009, 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. |
| (6) | 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. The total expense limits including the underlying investment companies are 1.47%, 2.22%, 2.22% 1.22% and 1.72% for Class A, B, C, I and R shares, respectively. Effective December 17, 2007, the total expense limit was 1.22% for Class W shares. |
The Investment Adviser may at a later date recoup from a Fund management fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, a Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations for each Fund. Amounts payable by the Investment Adviser are reflected on the accompanying Statement of Assets and Liabilities for each Fund.
As of April 30, 2008, 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:
| | | | | | | | | | | | | | | | | |
| | | April 30, | | |
Fund | | 2009 | | 2010 | | 2011 | | Total |
| |
| Asia-Pacific Real Estate | | $ | — | | | $ | — | | | $ | 56,041 | | | $ | 56,041 | |
| European Real Estate | | | — | | | | — | | | | 49,810 | | | | 49,810 | |
| International Capital Appreciation | | | — | | | | 4,987 | | | | — | | | | 4,987 | |
| International Equity Dividend | | | — | | | | — | | | | 72,300 | | | | 72,300 | |
| International Real Estate | | | — | | | | 21,519 | | | | — | | | | 21,519 | |
| International Value Opportunities | | | — | | | | 6,869 | | | | 171,446 | | | | 178,315 | |
| Global Bond | | | — | | | | 120,126 | | | | 61,213 | | | | 181,339 | |
| Diversified International | | | 80,054 | | | | 680,452 | | | | 1,546,288 | | | | 2,306,794 | |
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.
NOTE 10 — LINE OF CREDIT
All of the Funds included in this report, in addition to certain other funds managed by the Investment Adviser, have entered into an unsecured committed revolving line of credit agreement (the “Credit Agreement”) with The Bank of New York Mellon Corporation (“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; (2) finance the redemption of shares of an investor in the Funds; and (3) enable the Funds to meet other emergency expenses as defined in the Credit Agreement. The Funds to which the line of credit is available pay a commitment fee equal to 0.09% per annum on the daily unused portion of the committed line amount payable quarterly in arrears.
131
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 10 — LINE OF CREDIT (continued)
The following Funds utilized the line of credit during the year ended April 30, 2008:
| | | | | | | | | | | | | |
| | | | | | | Approximate
|
| | | | | | | Weighted
|
| | | | | Approximate
| | Average
|
| | | | | Average Daily
| | Interest Rate
|
| | | Days
| | Balance for
| | for Days
|
Fund | | Utilized | | Days Utilized | | Utilized |
| |
| Global Natural Resources | | | 75 | | | $ | 698,133 | | | | 3.95 | % |
| Global Real Estate | | | 4 | | | | 2,285,000 | | | | 4.06 | % |
| Global Value Choice | | | 6 | | | | 495,000 | | | | 4.42 | % |
| Disciplined International SmallCap | | | 28 | | | | 3,750,357 | | | | 4.01 | % |
| Emerging Countries | | | 9 | | | | 1,115,556 | | | | 4.54 | % |
| Foreign | | | 3 | | | | 1,403,333 | | | | 4.91 | % |
| Index Plus International Equity | | | 49 | | | | 9,239,388 | | | | 4.12 | % |
| International Capital Appreciation | | | 14 | | | | 598,571 | | | | 4.18 | % |
| International Growth Opportunities | | | 32 | | | | 1,101,563 | | | | 4.87 | % |
| International SmallCap | | | 71 | | | | 10,099,718 | | | | 4.57 | % |
| International Value | | | 35 | | | | 7,724,857 | | | | 3.87 | % |
| International Value Choice | | | 4 | | | | 572,500 | | | | 3.54 | % |
| Emerging Markets Fixed Income | | | 4 | | | | 1,010,000 | | | | 2.85 | % |
| Global Bond | | | 6 | | | | 1,075,000 | | | | 4.75 | % |
NOTE 11 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Equity Dividend
(Number of Shares) |
| Shares sold | | | 1,122,218 | | | | 6,497,494 | | | | 166,926 | | | | 1,035,641 | | | | 665,964 | | | | 3,220,887 | |
| Reinvestment of distributions | | | 720,744 | | | | 465,717 | | | | 232,818 | | | | 161,965 | | | | 437,485 | | | | 259,339 | |
| Shares redeemed | | | (3,508,307 | ) | | | (3,024,146 | ) | | | (778,809 | ) | | | (595,508 | ) | | | (1,614,802 | ) | | | (965,038 | ) |
| | | | | | | | | | | | �� | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (1,665,345 | ) | | | 3,939,065 | | | | (379,065 | ) | | | 602,098 | | | | (511,353 | ) | | | 2,515,188 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Equity Dividend ($) |
| Shares sold | | $ | 16,024,420 | | | $ | 104,816,704 | | | $ | 2,373,228 | | | $ | 16,616,360 | | | $ | 9,436,092 | | | $ | 51,629,780 | |
| Reinvestment of distributions | | | 10,292,530 | | | | 7,440,753 | | | | 3,314,077 | | | | 2,570,336 | | | | 6,212,032 | | | | 4,112,436 | |
| Shares redeemed | | | (49,548,516 | ) | | | (48,779,296 | ) | | | (10,966,402 | ) | | | (9,575,960 | ) | | | (22,337,005 | ) | | | (15,559,185 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (23,231,566 | ) | | $ | 63,478,161 | | | $ | (5,279,097 | ) | | $ | 9,610,736 | | | $ | (6,688,881 | ) | | $ | 40,183,031 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
132
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class O | | Class W | | |
| | | Six Months
| | August 1,
| | Six Months
| | November 15,
| | February 12,
| | |
| | | Ended
| | 2007(1) to
| | Ended
| | 2006(1) to
| | 2008(1) to
| | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Equity Dividend
(Number of Shares) |
| Shares sold | | | — | | | | 64 | | | | 527,397 | | | | 1,823,965 | | | | 134 | | | | | |
| Reinvestment of distributions | | | 1 | | | | — | | | | 144,398 | | | | 33,142 | | | | — | | | | | |
| Shares redeemed | | | — | | | | — | | | | (361,086 | ) | | | (446,487 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 1 | | | | 64 | | | | 310,709 | | | | 1,410,620 | | | | 134 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Equity Dividend ($) |
| Shares sold | | $ | — | | | $ | 1,018 | | | $ | 7,509,890 | | | $ | 29,498,450 | | | $ | 2,020 | | | | | |
| Reinvestment of distributions | | | 13 | | | | — | | | | 2,059,816 | | | | 540,071 | | | | — | | | | | |
| Shares redeemed | | | — | | | | — | | | | (5,072,700 | ) | | | (7,222,361 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 13 | | | $ | 1,018 | | | $ | 4,497,006 | | | $ | 22,816,160 | | | $ | 2,020 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class I | | Class W | | |
| | | Six Months
| | | | Six Months
| | August 1,
| | February 12,
| | |
| | | Ended
| | Year Ended
| | Ended
| | 2007(1) to
| | 2008(1) to
| | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Natural Resources
(Number of Shares) |
| Shares sold | | | 950,144 | | | | 1,398,112 | | | | 7 | | | | 157 | | | | 103 | | | | | |
| Reinvestment of distributions | | | 2,336,443 | | | | 570,030 | | | | 20 | | | | — | | | | — | | | | | |
| Shares redeemed | | | (1,321,780 | ) | | | (2,449,466 | ) | | | (83 | ) | | | (1 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 1,964,807 | | | | (481,324 | ) | | | (56 | ) | | | 156 | | | | 103 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Natural Resources ($) |
| Shares sold | | $ | 10,800,705 | | | $ | 16,676,935 | | | $ | 100 | | | $ | 2,027 | | | $ | 1,393 | | | | | |
| Reinvestment of distributions | | | 25,092,175 | | | | 6,190,526 | | | | 209 | | | | — | | | | — | | | | | |
| Shares redeemed | | | (14,953,035 | ) | | | (27,924,309 | ) | | | (913 | ) | | | (12 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 20,939,845 | | | $ | (5,056,848 | ) | | $ | (604 | ) | | $ | 2,015 | | | $ | 1,393 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Real Estate
(Number of Shares) |
| Shares sold | | | 19,584,971 | | | | 44,628,840 | | | | 159,715 | | | | 1,826,489 | | | | 3,142,066 | | | | 11,726,737 | |
| Reinvestment of distributions | | | 1,075,289 | | | | 1,488,668 | | | | 59,951 | | | | 108,319 | | | | 262,307 | | | | 364,760 | |
| Shares redeemed | | | (13,655,773 | ) | | | (21,034,520 | ) | | | (543,744 | ) | | | (786,045 | ) | | | (3,281,794 | ) | | | (3,551,184 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 7,004,487 | | | | 25,082,988 | | | | (324,078 | ) | | | 1,148,763 | | | | 122,579 | | | | 8,540,313 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Real Estate ($) |
| Shares sold | | $ | 395,409,820 | | | $ | 1,053,431,057 | | | $ | 2,733,623 | | | $ | 37,270,066 | | | $ | 56,866,450 | | | $ | 250,279,742 | |
| Reinvestment of distributions | | | 22,021,950 | | | | 34,928,676 | | | | 1,045,083 | | | | 2,180,962 | | | | 4,807,384 | | | | 7,711,845 | |
| Shares redeemed | | | (274,457,451 | ) | | | (490,048,454 | ) | | | (9,290,311 | ) | | | (15,294,287 | ) | | | (59,200,767 | ) | | | (72,337,353 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 142,974,319 | | | $ | 598,311,279 | | | $ | (5,511,605 | ) | | $ | 24,156,741 | | | $ | 2,473,067 | | | $ | 185,654,234 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
133
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class O | | Class W | | |
| | | Six Months
| | | | Six Months
| | November 15,
| | February 12,
| | |
| | | Ended
| | Year Ended
| | Ended
| | 2006(1) to
| | 2008(1) to
| | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Real Estate
(Number of Shares) |
| Shares sold | | | 5,939,725 | | | | 2,833,616 | | | | 228,670 | | | | 1,927,071 | | | | 1,260,095 | | | | | |
| Reinvestment of distributions | | | 115,003 | | | | 51,336 | | | | 28,025 | | | | 32,070 | | | | 1,117 | | | | | |
| Shares redeemed | | | (979,545 | ) | | | (214,363 | ) | | | (266,862 | ) | | | (878,519 | ) | | | (868 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 5,075,183 | | | | 2,670,589 | | | | (10,167 | ) | | | 1,080,622 | | | | 1,260,344 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Real Estate ($) |
| Shares sold | | $ | 119,967,042 | | | $ | 65,388,279 | | | $ | 4,653,439 | | | $ | 46,088,840 | | | $ | 25,749,589 | | | | | |
| Reinvestment of distributions | | | 2,355,705 | | | | 1,203,302 | | | | 574,134 | | | | 756,820 | | | | 22,915 | | | | | |
| Shares redeemed | | | (19,169,256 | ) | | | (4,776,229 | ) | | | (5,383,868 | ) | | | (20,349,596 | ) | | | (17,683 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 103,153,491 | | | $ | 61,815,352 | | | $ | (156,295 | ) | | $ | 26,496,064 | | | $ | 25,754,821 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Value Choice
(Number of Shares) |
| Shares sold | | | 626,211 | | | | 413,843 | | | | 57,563 | | | | 125,643 | | | | 98,424 | | | | 224,819 | |
| Reinvestment of distributions | | | 7,665 | | | | — | | | | — | | | | — | | | | 565 | | | | — | |
| Shares redeemed | | | (361,949 | ) | | | (528,474 | ) | | | (228,562 | ) | | | (312,118 | ) | | | (148,301 | ) | | | (281,123 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 271,927 | | | | (114,631 | ) | | | (170,999 | ) | | | (186,475 | ) | | | (49,312 | ) | | | (56,304 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Value Choice ($) |
| Shares sold | | $ | 16,203,377 | | | $ | 10,390,704 | | | $ | 1,616,753 | | | $ | 3,421,856 | | | $ | 2,486,071 | | | $ | 5,420,100 | |
| Reinvestment of distributions | | | 197,906 | | | | — | | | | — | | | | — | | | | 14,032 | | | | — | |
| Shares redeemed | | | (9,263,501 | ) | | | (13,039,443 | ) | | | (6,415,207 | ) | | | (8,358,692 | ) | | | (3,645,955 | ) | | | (6,746,051 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 7,137,782 | | | $ | (2,648,739 | ) | | $ | (4,798,454 | ) | | $ | (4,936,836 | ) | | $ | (1,145,852 | ) | | $ | (1,325,951 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class Q | | | | |
| | | Six Months
| | | | Six Months
| | | | | | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | | | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | | | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Value Choice
(Number of Shares) |
| Shares sold | | | 128,021 | | | | 185,884 | | | | 3,503 | | | | 9,271 | | | | | | | | | |
| Reinvestment of distributions | | | 3,007 | | | | — | | | | 511 | | | | — | | | | | | | | | |
| Shares redeemed | | | (50,755 | ) | | | (49,776 | ) | | | (10,944 | ) | | | (38,134 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 80,273 | | | | 136,108 | | | | (6,930 | ) | | | (28,863 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Value Choice ($) |
| Shares sold | | $ | 3,288,080 | | | $ | 4,448,082 | | | $ | 107,180 | | | $ | 270,527 | | | | | | | | | |
| Reinvestment of distributions | | | 77,786 | | | | — | | | | 15,493 | | | | — | | | | | | | | | |
| Shares redeemed | | | (1,305,195 | ) | | | (1,272,296 | ) | | | (325,704 | ) | | | (1,113,397 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 2,060,671 | | | $ | 3,175,786 | | | $ | (203,031 | ) | | $ | (842,870 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
134
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C | | Class I | | | | |
| | | November 1,
| | November 1,
| | November 1,
| | November 1,
| | | | |
| | | 2007(1) to
| | 2007(1) to
| | 2007(1) to
| | 2007(1) to
| | | | |
| | | April 30,
| | April 30,
| | April 30,
| | April 30,
| | | | |
| | | 2008 | | 2008 | | 2008 | | 2008 | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Asia-Pacific Real Estate
(Number of Shares) |
| Shares sold | | | 606,508 | | | | 3,552 | | | | 16,283 | | | | 102 | | | | | | | | | |
| Reinvestment of distributions | | | 317 | | | | 17 | | | | 49 | | | | — | | | | | | | | | |
| Shares redeemed | | | (2,432 | ) | | | (382 | ) | | | (652 | ) | | | (1 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 604,393 | | | | 3,187 | | | | 15,680 | | | | 101 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Asia-Pacific Real Estate ($) |
| Shares sold | | $ | 5,886,048 | | | $ | 30,402 | | | $ | 142,046 | | | $ | 1,020 | | | | | | | | | |
| Reinvestment of distributions | | | 2,581 | | | | 137 | | | | 413 | | | | — | | | | | | | | | |
| Shares redeemed | | | (18,855 | ) | | | (3,153 | ) | | | (5,300 | ) | | | (10 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 5,869,774 | | | $ | 27,386 | | | $ | 137,159 | | | $ | 1,010 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | December 20,
| | Six Months
| | December 20,
| | Six Months
| | December 20,
|
| | | Ended
| | 2006(1) to
| | Ended
| | 2006(1) to
| | Ended
| | 2006(1) to
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Disciplined International SmallCap
(Number of Shares) |
| Shares sold | | | 16,888 | | | | 9,086 | | | | 205 | | | | 439 | | | | 121 | | | | 5,041 | |
| Reinvestment of distributions | | | 191 | | | | — | | | | 7 | | | | — | | | | 88 | | | | — | |
| Shares redeemed | | | (11,901 | ) | | | (3,367 | ) | | | (120 | ) | | | — | | | | (4,040 | ) | | | (427 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 5,178 | | | | 5,719 | | | | 92 | | | | 439 | | | | (3,831 | ) | | | 4,614 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Disciplined International SmallCap ($) |
| Shares sold | | $ | 182,850 | | | $ | 103,553 | | | $ | 2,000 | | | $ | 4,533 | | | $ | 1,417 | | | $ | 57,840 | |
| Reinvestment of distributions | | | 1,955 | | | | — | | | | 67 | | | | — | | | | 897 | | | | — | |
| Shares redeemed | | | (127,502 | ) | | | (37,185 | ) | | | (1,189 | ) | | | — | | | | (37,419 | ) | | | (4,978 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 57,303 | | | $ | 66,368 | | | $ | 878 | | | $ | 4,533 | | | $ | (35,105 | ) | | $ | 52,862 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | | | | | |
| | | Six Months
| | December 20,
| | | | | | | | |
| | | Ended
| | 2006(1) to
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Disciplined International SmallCap
(Number of Shares) |
| Shares sold | | | 9,528,187 | | | | 43,082,677 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 1,061,868 | | | | — | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (12,392,740 | ) | | | (4,681,887 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (1,802,685 | ) | | | 38,400,790 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Disciplined International SmallCap ($) |
| Shares sold | | $ | 97,327,393 | | | $ | 492,455,050 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 10,882,081 | | | | — | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (122,545,456 | ) | | | (54,244,725 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (14,335,982 | ) | | $ | 438,210,325 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
135
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A(2) | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries
(Number of Shares) |
| Shares sold | | | 618,333 | | | | 1,677,506 | | | | 33,480 | | | | 120,366 | | | | 121,082 | | | | 415,931 | |
| Shares converted | | | — | | | | 48,167 | | | | — | | | | — | | | | — | | | | — | |
| Reinvestment of distributions | | | 175,355 | | | | 49,397 | | | | 12,082 | | | | 2,139 | | | | 40,477 | | | | 6,705 | |
| Shares redeemed | | | (899,557 | ) | | | (1,177,964 | ) | | | (81,277 | ) | | | (180,617 | ) | | | (214,617 | ) | | | (323,475 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (105,869 | ) | | | 597,106 | | | | (35,715 | ) | | | (58,112 | ) | | | (53,058 | ) | | | 99,161 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries ($) |
| Shares sold | | $ | 22,567,669 | | | $ | 61,051,631 | | | $ | 1,200,081 | | | $ | 4,540,140 | | | $ | 4,105,707 | | | $ | 14,223,797 | |
| Shares converted | | | — | | | | 1,570,432 | | | | — | | | | — | | | | — | | | | — | |
| Reinvestment of distributions | | | 6,268,947 | | | | 1,591,065 | | | | 426,373 | | | | 67,985 | | | | 1,345,440 | | | | 201,560 | |
| Shares redeemed | | | (32,733,412 | ) | | | (42,526,644 | ) | | | (2,920,278 | ) | | | (6,583,827 | ) | | | (7,174,480 | ) | | | (10,757,579 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (3,896,796 | ) | | $ | 21,686,484 | | | $ | (1,293,824 | ) | | $ | (1,975,702 | ) | | $ | (1,723,333 | ) | | $ | 3,667,778 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class M(2) | | Class Q |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries
(Number of Shares) |
| Shares sold | | | 577,248 | | | | 517,678 | | | | — | | | | 49 | | | | 74,607 | | | | 383,862 | |
| Shares converted | | | — | | | | — | | | | — | | | | (48,826 | ) | | | — | | | | — | |
| Reinvestment of distributions | | | 48,613 | | | | 13,851 | | | | — | | | | 425 | | | | 20,058 | | | | 5,154 | |
| Shares redeemed | | | (787,714 | ) | | | (322,580 | ) | | | — | | | | (1,853 | ) | | | (126,482 | ) | | | (243,283 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (161,853 | ) | | | 208,949 | | | | — | | | | (50,205 | ) | | | (31,817 | ) | | | 145,733 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries ($) |
| Shares sold | | $ | 21,202,741 | | | $ | 18,694,152 | | | $ | — | | | $ | 1,496 | | | $ | 2,800,325 | | | $ | 14,213,705 | |
| Shares converted | | | — | | | | — | | | | — | | | | (1,570,432 | ) | | | — | | | | — | |
| Reinvestment of distributions | | | 1,739,866 | | | | 446,558 | | | | — | | | | 13,499 | | | | 742,560 | | | | 171,687 | |
| Shares redeemed | | | (28,349,103 | ) | | | (11,228,172 | ) | | | — | | | | (57,877 | ) | | | (4,640,530 | ) | | | (8,769,423 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (5,406,496 | ) | | $ | 7,912,538 | | | $ | — | | | $ | (1,613,314 | ) | | $ | (1,097,645 | ) | | $ | 5,615,969 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class W | | | | | | | | | | |
| | | February 12,
| | | | | | | | | | |
| | | 2008(1) to
| | | | | | | | | | |
| | | April 30,
| | | | | | | | | | |
| | | 2008 | | | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries
(Number of Shares) |
| Shares sold | | | 2,000 | | | | | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (1 | ) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 1,999 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Countries ($) |
| Shares sold | | $ | 76,220 | | | | | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (40 | ) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 76,180 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Commencement of operations |
| |
| (2) | | Effective January 2, 2007, Class M shareholders of Emerging Countries were converted to Class A shares of the fund. |
136
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C | | Class I | | | | |
| | | November 1,
| | November 1,
| | November 1,
| | November 1,
| | | | |
| | | 2007(1) to
| | 2007(1) to
| | 2007(1) to
| | 2007(1) to
| | | | |
| | | April 30,
| | April 30,
| | April 30,
| | April 30,
| | | | |
| | | 2008 | | 2008 | | 2008 | | 2008 | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
European Real Estate
(Number of Shares) |
| Shares sold | | | 638,624 | | | | 1,267 | | | | 14,380 | | | | 102 | | | | | | | | | |
| Reinvestment of distributions | | | 162 | | | | — | | | | 11 | | | | — | | | | | | | | | |
| Shares redeemed | | | (34 | ) | | | (1 | ) | | | (101 | ) | | | (1 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 638,752 | | | | 1,266 | | | | 14,290 | | | | 101 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
European Real Estate ($) |
| Shares sold | | $ | 6,257,510 | | | $ | 12,089 | | | $ | 136,249 | | | $ | 1,020 | | | | | | | | | |
| Reinvestment of distributions | | | 1,547 | | | | — | | | | 98 | | | | — | | | | | | | | | |
| Shares redeemed | | | (467 | ) | | | (10 | ) | | | (846 | ) | | | (10 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 6,258,590 | | | $ | 12,079 | | | $ | 135,501 | | | $ | 1,010 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign
(Number of Shares) |
| Shares sold | | | 3,454,147 | | | | 5,586,881 | | | | 196,641 | | | | 465,033 | | | | 1,248,139 | | | | 2,788,802 | |
| Reinvestment of distributions | | | 689,982 | | | | 268,335 | | | | 113,030 | | | | 54,324 | | | | 458,601 | | | | 201,179 | |
| Shares redeemed | | | (2,383,991 | ) | | | (2,834,087 | ) | | | (386,047 | ) | | | (418,014 | ) | | | (1,291,080 | ) | | | (1,297,440 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 1,760,138 | | | | 3,021,129 | | | | (76,376 | ) | | | 101,343 | | | | 415,660 | | | | 1,692,541 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign ($) |
| Shares sold | | $ | 69,402,000 | | | $ | 116,065,154 | | | $ | 3,911,714 | | | $ | 9,375,051 | | | $ | 24,399,348 | | | $ | 55,924,710 | |
| Reinvestment of distributions | | | 14,110,126 | | | | 5,170,819 | | | | 2,230,091 | | | | 1,019,661 | | | | 9,061,951 | | | | 3,781,772 | |
| Shares redeemed | | | (47,857,449 | ) | | | (58,600,260 | ) | | | (7,469,173 | ) | | | (8,375,577 | ) | | | (25,618,617 | ) | | | (26,171,530 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 35,654,677 | | | $ | 62,635,713 | | | $ | (1,327,368 | ) | | $ | 2,019,135 | | | $ | 7,842,682 | | | $ | 33,534,952 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class Q | | Class W | | |
| | | Six Months
| | | | Six Months
| | | | February 12,
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | 2008(1) to
| | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign
(Number of Shares) |
| Shares sold | | | 877,928 | | | | 2,245,294 | | | | — | | | | 234 | | | | 3,855 | | | | | |
| Reinvestment of distributions | | | 317,295 | | | | 121,586 | | | | 2,445 | | | | 2,264 | | | | — | | | | | |
| Shares redeemed | | | (209,846 | ) | | | (1,080,849 | ) | | | (3,157 | ) | | | (30,513 | ) | | | (1 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 985,377 | | | | 1,286,031 | | | | (712 | ) | | | (28,015 | ) | | | 3,854 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign ($) |
| Shares sold | | $ | 18,476,023 | | | $ | 47,286,509 | | | $ | — | | | $ | 5,012 | | | $ | 83,051 | | | | | |
| Reinvestment of distributions | | | 6,602,918 | | | | 2,373,357 | | | | 50,212 | | | | 43,762 | | | | — | | | | | |
| Shares redeemed | | | (4,160,345 | ) | | | (22,654,368 | ) | | | (62,159 | ) | | | (652,894 | ) | | | (23 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 20,918,596 | | | $ | 27,005,498 | | | $ | (11,947 | ) | | $ | (604,120 | ) | | $ | 83,028 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Commencement of operations |
137
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Greater China
(Number of Shares) |
| Shares sold | | | 650,244 | | | | 2,196,767 | | | | 67,344 | | | | 295,918 | | | | 143,374 | | | | 559,664 | |
| Reinvestment of distributions | | | 239,808 | | | | 4,251 | | | | 29,578 | | | | 626 | | | | 49,298 | | | | 357 | |
| Shares redeemed | | | (1,100,834 | ) | | | (1,077,963 | ) | | | (87,597 | ) | | | (146,993 | ) | | | (305,606 | ) | | | (218,283 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (210,782 | ) | | | 1,123,055 | | | | 9,325 | | | | 149,551 | | | | (112,934 | ) | | | 341,738 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Greater China ($) |
| Shares sold | | $ | 12,233,051 | | | $ | 36,379,127 | | | $ | 1,263,311 | | | $ | 4,827,247 | | | $ | 2,655,632 | | | $ | 9,969,510 | |
| Reinvestment of distributions | | | 4,242,198 | | | | 59,565 | | | | 517,910 | | | | 8,720 | | | | 863,707 | | | | 4,978 | |
| Shares redeemed | | | (19,275,407 | ) | | | (17,193,019 | ) | | | (1,653,852 | ) | | | (2,430,746 | ) | | | (5,501,463 | ) | | | (3,407,996 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (2,800,158 | ) | | $ | 19,245,673 | | | $ | 127,369 | | | $ | 2,405,221 | | | $ | (1,982,124 | ) | | $ | 6,566,492 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | | | | | |
| | | Six Months
| | | | | | | | | | |
| | | Ended
| | Year Ended
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Greater China
(Number of Shares) |
| Shares sold | | | 741 | | | | 338 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 255 | | | | 9 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (31 | ) | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 965 | | | | 347 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Greater China ($) |
| Shares sold | | $ | 12,750 | | | $ | 6,820 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 4,518 | | | | 125 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (628 | ) | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 16,640 | | | $ | 6,945 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Index Plus International Equity
(Number of Shares) |
| Shares sold | | | 68,230 | | | | 128,123 | | | | 10,792 | | | | 32,179 | | | | 19,866 | | | | 53,278 | |
| Proceeds from shares issued in merger | | | 2,083,276 | | | | — | | | | 355,813 | | | | — | | | | 197,636 | | | | — | |
| Reinvestment of distributions | | | 15,616 | | | | 1,989 | | | | 6,215 | | | | 632 | | | | 5,787 | | | | 773 | |
| Shares redeemed | | | (549,639 | ) | | | (1,041,019 | ) | | | (63,510 | ) | | | (2,719 | ) | | | (59,415 | ) | | | (18,988 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 1,617,483 | | | | (910,907 | ) | | | 309,310 | | | | 30,092 | | | | 163,874 | | | | 35,063 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Index Plus International Equity ($) |
| Shares sold | | $ | 750,831 | | | $ | 1,644,502 | | | $ | 119,638 | | | $ | 413,854 | | | $ | 223,329 | | | $ | 680,086 | |
| Proceeds from shares issued in merger | | | 24,809,468 | | | | — | | | | 4,223,697 | | | | — | | | | 2,343,627 | | | | — | |
| Reinvestment of distributions | | | 183,797 | | | | 23,642 | | | | 72,966 | | | | 7,493 | | | | 67,879 | | | | 9,149 | |
| Shares redeemed | | | (5,893,926 | ) | | | (13,003,326 | ) | | | (665,376 | ) | | | (36,087 | ) | | | (635,545 | ) | | | (234,315 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 19,850,170 | | | $ | (11,335,182 | ) | | $ | 3,750,925 | | | $ | 385,260 | | | $ | 1,999,290 | | | $ | 454,920 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
138
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | |
| | | Class I | | Class O |
| | | Six Months
| | | | November 12,
|
| | | Ended
| | Year Ended
| | 2007(1) to
|
| | | April 30,
| | October 31,
| | April 30,
|
| | | 2008 | | 2007 | | 2008 |
| |
| | | | | | | | | | | | | |
Index Plus International Equity
(Number of Shares) |
| Shares sold | | | 7,691,392 | | | | 4,628,592 | | | | 879,909 | |
| Proceeds from shares issued in merger | | | 523,573 | | | | — | | | | 7,673,371 | |
| Reinvestment of distributions | | | 1,189,238 | | | | 237,356 | | | | 62 | |
| Shares redeemed | | | (2,418,115 | ) | | | (3,125,186 | ) | | | (1,103,612 | ) |
| | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 6,986,088 | | | | 1,740,762 | | | | 7,449,730 | |
| | | | | | | | | | | | | |
Index Plus International Equity ($) |
| Shares sold | | $ | 84,933,814 | | | $ | 59,372,768 | | | $ | 9,389,633 | |
| Proceeds from shares issued in merger | | | 6,258,727 | | | | — | | | | 90,795,795 | |
| Reinvestment of distributions | | | 14,056,792 | | | | 2,817,418 | | | | 730 | |
| Shares redeemed | | | (25,679,759 | ) | | | (39,684,824 | ) | | | (11,649,547 | ) |
| | | | | | | | | | | | | |
| Net increase | | $ | 79,569,574 | | | $ | 22,505,362 | | | $ | 88,536,611 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Capital Appreciation
(Number of Shares) |
| Shares sold | | | 86,983 | | | | 192,965 | | | | 40,164 | | | | 61,628 | | | | 47,665 | | | | 66,475 | |
| Reinvestment of distributions | | | 4,821 | | | | 413 | | | | 2,138 | | | | 115 | | | | 1,936 | | | | 123 | |
| Shares redeemed | | | (19,324 | ) | | | (207,146 | ) | | | (41,677 | ) | | | (3,275 | ) | | | (24,381 | ) | | | (6,361 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 72,480 | | | | (13,768 | ) | | | 625 | | | | 58,468 | | | | 25,220 | | | | 60,237 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Capital Appreciation ($) |
| Shares sold | | $ | 1,146,710 | | | $ | 2,368,777 | | | $ | 527,651 | | | $ | 807,880 | | | $ | 593,964 | | | $ | 888,507 | |
| Reinvestment of distributions | | | 62,381 | | | | 4,867 | | | | 27,323 | | | | 1,344 | | | | 24,821 | | | | 1,448 | |
| Shares redeemed | | | (242,324 | ) | | | (2,460,407 | ) | | | (506,967 | ) | | | (40,301 | ) | | | (297,909 | ) | | | (80,137 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 966,767 | | | $ | (86,763 | ) | | $ | 48,007 | | | $ | 768,923 | | | $ | 320,876 | | | $ | 809,818 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | Class I |
| | | Six Months
| | |
| | | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
|
| | | 2008 | | 2007 |
| |
| | | | | | | | | |
International Capital Appreciation
(Number of Shares) |
| Shares sold | | | 1,498,959 | | | | 5,530,264 | |
| Reinvestment of distributions | | | 515,675 | | | | 128,072 | |
| Shares redeemed | | | (514,632 | ) | | | (331,815 | ) |
| | | | | | | | | |
| Net increase in shares outstanding | | | 1,500,002 | | | | 5,326,521 | |
| | | | | | | | | |
International Capital Appreciation ($) |
| Shares sold | | $ | 19,551,127 | | | $ | 69,653,165 | |
| Reinvestment of distributions | | | 6,677,994 | | | | 1,509,974 | |
| Shares redeemed | | | (6,304,870 | ) | | | (4,575,021 | ) |
| | | | | | | | | |
| Net increase | | $ | 19,924,251 | | | $ | 66,588,118 | |
| | | | | | | | | |
| | |
| (1) | | Commencement of operations |
139
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 11 — CAPITAL SHARES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | June 28,
| | Six Months
| | June 28,
| | Six Months
| | June 28,
|
| | | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Equity Dividend
(Number of Shares) |
| Shares sold | | | 70,933 | | | | 393,069 | | | | 9,614 | | | | 22,651 | | | | 75,464 | | | | 126,454 | |
| Reinvestment of distributions | | | 6,241 | | | | — | | | | 57 | | | | — | | | | 2,451 | | | | — | |
| Shares redeemed | | | (77,096 | ) | | | (3,131 | ) | | | (411 | ) | | | (31 | ) | | | (38,445 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 78 | | | | 389,938 | | | | 9,260 | | | | 22,620 | | | | 39,470 | | | | 126,454 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Equity Dividend ($) |
| Shares sold | | $ | 679,862 | | | $ | 3,902,205 | | | $ | 90,349 | | | $ | 218,286 | | | $ | 733,835 | | | $ | 1,252,342 | |
| Reinvestment of distributions | | | 59,654 | | | | — | | | | 543 | | | | — | | | | 23,412 | | | | — | |
| Shares redeemed | | | (724,265 | ) | | | (31,138 | ) | | | (3,843 | ) | | | (310 | ) | | | (346,236 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 15,251 | | | $ | 3,871,067 | | | $ | 87,049 | | | $ | 217,976 | | | $ | 411,011 | | | $ | 1,252,342 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class W | | | | | | |
| | | Six Months
| | June 28,
| | February 12,
| | | | | | |
| | | Ended
| | 2007(1) to
| | 2008(1) to
| | | | | | |
| | | April 30,
| | October 31,
| | April 30,
| | | | | | |
| | | 2008 | | 2007 | | 2008 | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Equity Dividend
(Number of Shares) |
| Shares sold | | | 533,323 | | | | 5,265,562 | | | | 106 | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 109,148 | | | | — | | | | — | | | | | | | | | | | | | |
| Shares redeemed | | | (761,154 | ) | | | (7,892 | ) | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (118,683 | ) | | | 5,257,670 | | | | 106 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Equity Dividend ($) |
| Shares sold | | $ | 5,158,675 | | | $ | 52,290,180 | | | $ | 1,015 | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 1,043,832 | | | | — | | | | — | | | | | | | | | | | | | |
| Shares redeemed | | | (7,184,281 | ) | | | (78,707 | ) | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (981,774 | ) | | $ | 52,211,473 | | | $ | 1,015 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Growth Opportunities
(Number of Shares) |
| Shares sold | | | 418,486 | | | | 606,666 | | | | 63,006 | | | | 90,648 | | | | 186,128 | | | | 150,534 | |
| Reinvestment of distributions | | | 721,221 | | | | 424,904 | | | | 183,439 | | | | 101,617 | | | | 135,646 | | | | 65,339 | |
| Shares redeemed | | | (558,537 | ) | | | (1,337,839 | ) | | | (292,077 | ) | | | (360,538 | ) | | | (123,672 | ) | | | (192,575 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 581,170 | | | | (306,269 | ) | | | (45,632 | ) | | | (168,273 | ) | | | 198,102 | | | | 23,298 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Growth Opportunities ($) |
| Shares sold | | $ | 5,206,671 | | | $ | 8,143,922 | | | $ | 739,181 | | | $ | 1,180,526 | | | $ | 2,149,000 | | | $ | 1,979,430 | |
| Reinvestment of distributions | | | 8,741,204 | | | | 5,354,882 | | | | 2,113,215 | | | | 1,234,642 | | | | 1,563,995 | | | | 793,868 | |
| Shares redeemed | | | (6,817,700 | ) | | | (17,966,521 | ) | | | (3,386,627 | ) | | | (4,705,424 | ) | | | (1,389,260 | ) | | | (2,507,472 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 7,130,175 | | | $ | (4,467,717 | ) | | $ | (534,231 | ) | | $ | (2,290,256 | ) | | $ | 2,323,735 | | | $ | 265,826 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Commencement of operations |
140
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class Q | | | | |
| | | Six Months
| | | | Six Months
| | | | | | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | | | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | | | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Growth Opportunities
(Number of Shares) |
| Shares sold | | | 457,015 | | | | 360,989 | | | | 346,219 | | | | 594,965 | | | | | | | | | |
| Reinvestment of distributions | | | 128,973 | | | | 110,577 | | | | 392,610 | | | | 225,064 | | | | | | | | | |
| Shares redeemed | | | (219,213 | ) | | | (827,433 | ) | | | (655,539 | ) | | | (787,068 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 366,775 | | | | (355,867 | ) | | | 83,290 | | | | 32,961 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Growth Opportunities ($) |
| Shares sold | | $ | 5,374,450 | | | $ | 4,754,225 | | | $ | 4,136,798 | | | $ | 7,984,633 | | | | | | | | | |
| Reinvestment of distributions | | | 1,554,121 | | | | 1,383,313 | | | | 4,703,468 | | | | 2,804,295 | | | | | | | | | |
| Shares redeemed | | | (2,563,583 | ) | | | (10,767,823 | ) | | | (8,016,727 | ) | | | (10,306,446 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 4,364,988 | | | $ | (4,630,285 | ) | | $ | 823,539 | | | $ | 482,482 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Real Estate
(Number of Shares) |
| Shares sold | | | 6,776,781 | | | | 19,878,781 | | | | 55,806 | | | | 767,102 | | | | 1,699,607 | | | | 8,245,988 | |
| Reinvestment of distributions | | | 435,236 | | | | 123,340 | | | | 20,625 | | | | 5,012 | | | | 149,862 | | | | 30,706 | |
| Shares redeemed | | | (7,378,305 | ) | | | (5,641,413 | ) | | | (182,570 | ) | | | (98,193 | ) | | | (2,222,768 | ) | | | (1,361,519 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (166,288 | ) | | | 14,360,708 | | | | (106,139 | ) | | | 673,921 | | | | (373,299 | ) | | | 6,915,175 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Real Estate ($) |
| Shares sold | | $ | 82,924,369 | | | $ | 265,384,203 | | | $ | 679,037 | | | $ | 10,170,413 | | | $ | 20,562,786 | | | $ | 109,483,769 | |
| Reinvestment of distributions | | | 5,345,358 | | | | 1,645,656 | | | | 252,968 | | | | 65,277 | | | | 1,836,503 | | | | 401,088 | |
| Shares redeemed | | | (86,925,102 | ) | | | (74,585,692 | ) | | | (2,152,741 | ) | | | (1,277,012 | ) | | | (26,039,406 | ) | | | (17,644,347 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 1,344,625 | | | $ | 192,444,167 | | | $ | (1,220,736 | ) | | $ | 8,958,678 | | | $ | (3,640,117 | ) | | $ | 92,240,510 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Class I | | Class W |
| | | Six Months
| | | | February 12,
|
| | | Ended
| | Year Ended
| | 2008(1) to
|
| | | April 30,
| | October 31,
| | April 30,
|
| | | 2008 | | 2007 | | 2008 |
| |
| | | | | | | | | | | | | |
International Real Estate
(Number of Shares) |
| Shares sold | | | 20,120,020 | | | | 6,969,530 | | | | 9,439 | |
| Reinvestment of distributions | | | 293,488 | | | | 90,632 | | | | 2 | |
| Shares redeemed | | | (1,397,337 | ) | | | (268,863 | ) | | | — | |
| | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 19,016,171 | | | | 6,791,299 | | | | 9,441 | |
| | | | | | | | | | | | | |
International Real Estate ($) |
| Shares sold | | $ | 251,204,573 | | | $ | 91,183,483 | | | $ | 110,747 | |
| Reinvestment of distributions | | | 3,604,384 | | | | 1,202,775 | | | | 22 | |
| Shares redeemed | | | (16,668,054 | ) | | | (3,540,845 | ) | | | — | |
| | | | | | | | | | | | | |
| Net increase | | $ | 238,140,903 | | | $ | 88,845,413 | | | $ | 110,769 | |
| | | | | | | | | | | | | |
| | |
| (1) | | Commencement of operations |
141
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International SmallCap Multi-Manager
(Number of Shares) |
| Shares sold | | | 2,076,876 | | | | 5,045,814 | | | | 40,566 | | | | 120,228 | | | | 172,812 | | | | 517,439 | |
| Reinvestment of distributions | | | 998,505 | | | | 20,929 | | | | 118,877 | | | | — | | | | 221,020 | | | | 53 | |
| Shares redeemed | | | (2,771,597 | ) | | | (2,339,921 | ) | | | (337,042 | ) | | | (364,409 | ) | | | (382,500 | ) | | | (324,780 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 303,784 | | | | 2,726,822 | | | | (177,599 | ) | | | (244,181 | ) | | | 11,332 | | | | 192,712 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International SmallCap Multi-Manager ($) |
| Shares sold | | $ | 101,262,224 | | | $ | 301,848,369 | | | $ | 2,135,605 | | | $ | 7,497,411 | | | $ | 7,976,819 | | | $ | 29,552,044 | |
| Reinvestment of distributions | | | 47,126,969 | | | | 1,059,446 | | | | 5,828,529 | | | | — | | | | 9,764,678 | | | | 2,524 | |
| Shares redeemed | | | (133,634,275 | ) | | | (137,896,302 | ) | | | (16,664,947 | ) | | | (21,737,439 | ) | | | (16,798,704 | ) | | | (17,907,434 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 14,754,918 | | | $ | 165,011,513 | | | $ | (8,700,813 | ) | | $ | (14,240,028 | ) | | $ | 942,793 | | | $ | 11,647,134 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class Q | | Class W | | |
| | | Six Months
| | | | Six Months
| | | | February 12,
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | 2008(1) to
| | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International SmallCap Multi-Manager
(Number of Shares) |
| Shares sold | | | 943,600 | | | | 3,249,235 | | | | 314,451 | | | | 851,771 | | | | 4,942 | | | | | |
| Reinvestment of distributions | | | 627,703 | | | | 16,186 | | | | 273,319 | | | | 9,277 | | | | — | | | | | |
| Shares redeemed | | | (1,093,698 | ) | | | (516,468 | ) | | | (405,269 | ) | | | (648,584 | ) | | | (1 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 477,605 | | | | 2,748,953 | | | | 182,501 | | | | 212,464 | | | | 4,941 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International SmallCap Multi-Manager ($) |
| Shares sold | | $ | 46,812,112 | | | $ | 188,727,994 | | | $ | 16,272,464 | | | $ | 55,349,246 | | | $ | 263,044 | | | | | |
| Reinvestment of distributions | | | 29,671,518 | | | | 819,983 | | | | 14,024,003 | | | | 504,137 | | | | — | | | | | |
| Shares redeemed | | | (54,707,228 | ) | | | (32,274,836 | ) | | | (21,519,758 | ) | | | (41,248,877 | ) | | | (57 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 21,776,402 | | | $ | 157,273,141 | | | $ | 8,776,709 | | | $ | 14,604,506 | | | $ | 262,987 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value
(Number of Shares) |
| Shares sold | | | 9,880,094 | | | | 16,368,193 | | | | 379,869 | | | | 453,105 | | | | 1,340,944 | | | | 834,396 | |
| Reinvestment of distributions | | | 13,738,713 | | | | 7,950,487 | | | | 1,777,035 | | | | 1,377,293 | | | | 4,567,631 | | | | 2,721,822 | |
| Shares redeemed | | | (15,873,821 | ) | | | (24,751,517 | ) | | | (4,336,088 | ) | | | (6,016,199 | ) | | | (3,549,993 | ) | | | (4,638,571 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 7,744,986 | | | | (432,837 | ) | | | (2,179,184 | ) | | | (4,185,801 | ) | | | 2,358,582 | | | | (1,082,353 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value ($) |
| Shares sold | | $ | 182,708,288 | | | $ | 353,613,593 | | | $ | 7,112,414 | | | $ | 9,307,026 | | | $ | 24,078,198 | | | $ | 16,733,659 | |
| Reinvestment of distributions | | | 253,067,088 | | | | 162,571,673 | | | | 32,199,846 | | | | 27,711,130 | | | | 81,988,970 | | | | 54,463,672 | |
| Shares redeemed | | | (288,840,145 | ) | | | (539,661,218 | ) | | | (79,563,072 | ) | | | (129,493,665 | ) | | | (62,480,314 | ) | | | (98,807,462 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 146,935,231 | | | $ | (23,475,952 | ) | | $ | (40,250,812 | ) | | $ | (92,475,509 | ) | | $ | 43,586,854 | | | $ | (27,610,131 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Commencement of operations |
142
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class Q | | | | |
| | | Six Months
| | | | Six Months
| | | | | | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | | | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | | | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value
(Number of Shares) |
| Shares sold | | | 15,201,492 | | | | 27,853,117 | | | | 76,882 | | | | 4,986 | | | | | | | | | |
| Reinvestment of distributions | | | 12,048,408 | | | | 6,124,030 | | | | 168,251 | | | | 102,040 | | | | | | | | | |
| Shares redeemed | | | (32,015,853 | ) | | | (20,350,068 | ) | | | (103,258 | ) | | | (190,516 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (4,765,953 | ) | | | 13,627,079 | | | | 141,875 | | | | (83,490 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value ($) |
| Shares sold | | $ | 280,702,606 | | | $ | 601,984,171 | | | $ | 1,284,216 | | | $ | 110,000 | | | | | | | | | |
| Reinvestment of distributions | | | 221,811,195 | | | | 125,236,405 | | | | 3,102,544 | | | | 2,089,785 | | | | | | | | | |
| Shares redeemed | | | (568,771,806 | ) | | | (447,151,806 | ) | | | (1,876,492 | ) | | | (4,143,124 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (66,258,005 | ) | | $ | 280,068,770 | | | $ | 2,510,268 | | | $ | (1,943,339 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Choice
(Number of Shares) |
| Shares sold | | | 209,336 | | | | 196,008 | | | | 24,371 | | | | 40,254 | | | | 51,780 | | | | 85,318 | |
| Reinvestment of distributions | | | 176,805 | | | | 26,003 | | | | 29,707 | | | | 3,151 | | | | 39,133 | | | | 4,177 | |
| Shares redeemed | | | (224,607 | ) | | | (553,686 | ) | | | (37,489 | ) | | | (74,651 | ) | | | (73,317 | ) | | | (94,956 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 161,534 | | | | (331,675 | ) | | | 16,589 | | | | (31,246 | ) | | | 17,596 | | | | (5,461 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Choice ($) |
| Shares sold | | $ | 2,512,748 | | | $ | 2,591,527 | | | $ | 296,682 | | | $ | 523,398 | | | $ | 620,404 | | | $ | 1,113,930 | |
| Reinvestment of distributions | | | 2,075,696 | | | | 334,923 | | | | 345,496 | | | | 40,274 | | | | 456,287 | | | | 53,511 | |
| Shares redeemed | | | (2,696,219 | ) | | | (7,400,948 | ) | | | (451,403 | ) | | | (971,726 | ) | | | (881,607 | ) | | | (1,252,071 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 1,892,225 | | | $ | (4,474,498 | ) | | $ | 190,775 | | | $ | (408,054 | ) | | $ | 195,084 | | | $ | (84,630 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | | | | | |
| | | Six Months
| | | | | | | | | | |
| | | Ended
| | Year Ended
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | �� | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Choice
(Number of Shares) |
| Shares sold | | | 536,109 | | | | 4,387,177 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 775,006 | | | | 76,908 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (941,169 | ) | | | (3,383,938 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 369,946 | | | | 1,080,147 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Choice ($) |
| Shares sold | | $ | 6,828,706 | | | $ | 57,856,995 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 9,083,070 | | | | 989,038 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (11,133,484 | ) | | | (46,416,954 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 4,778,292 | | | $ | 12,429,079 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
143
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | February 28,
| | Six Months
| | February 28,
| | Six Months
| | February 28,
|
| | | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
| | Ended
| | 2007(1) to
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Opportunities
(Number of Shares) |
| Shares sold | | | 3,091 | | | | 1,004,583 | | | | 1,978 | | | | 1,280 | | | | 1,489 | | | | 2,699 | |
| Reinvestment of distributions | | | 136 | | | | — | | | | 1 | | | | — | | | | 21 | | | | — | |
| Shares redeemed | | | (67 | ) | | | (1,889 | ) | | | (135 | ) | | | (1,085 | ) | | | (100 | ) | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 3,160 | | | | 1,002,694 | | | | 1,844 | | | | 195 | | | | 1,410 | | | | 2,697 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Opportunities ($) |
| Shares sold | | $ | 30,994 | | | $ | 10,048,363 | | | $ | 19,315 | | | $ | 13,195 | | | $ | 14,886 | | | $ | 27,547 | |
| Reinvestment of distributions | | | 1,301 | | | | — | | | | 14 | | | | — | | | | 202 | | | | — | |
| Shares redeemed | | | (600 | ) | | | (18,645 | ) | | | (1,271 | ) | | | (11,002 | ) | | | (1,054 | ) | | | (21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 31,695 | | | $ | 10,029,718 | | | $ | 18,058 | | | $ | 2,193 | | | $ | 14,034 | | | $ | 27,526 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | | | | | |
| | | Six Months
| | February 28,
| | | | | | | | |
| | | Ended
| | 2007(1) to
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Opportunities
(Number of Shares) |
| Shares sold | | | — | | | | 103 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | — | | | | — | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | — | | | | (1 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | — | | | | 102 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
International Value Opportunities ($) |
| Shares sold | | $ | — | | | $ | 1,030 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | — | | | | — | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | — | | | | (10 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | — | | | $ | 1,020 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | | | | | | |
| | | Six Months
| | | | | | | | | | |
| | | Ended
| | Year Ended
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Russia
(Number of Shares) |
| Shares sold | | | 1,907,611 | | | | 4,435,492 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 1,701,821 | | | | 613,999 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (1,817,138 | ) | | | (6,715,298 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 1,792,294 | | | | (1,665,807 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Russia ($) |
| Shares sold | | $ | 130,212,288 | | | $ | 280,987,914 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 116,864,014 | | | | 37,402,991 | | | | | | | | | | | | | | | | | |
| Redemption fee proceeds | | | 322,893 | | | | 3,086,432 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (121,075,368 | ) | | | (422,755,301 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 126,323,827 | | | $ | (101,277,964 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
144
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Markets Fixed Income
(Number of Shares) |
| Shares sold | | | 137,625 | | | | 574,996 | | | | (203 | ) | | | 12,563 | | | | 53,230 | | | | 121,704 | |
| Reinvestment of distributions | | | 13,970 | | | | 17,007 | | | | 766 | | | | 1,367 | | | | 2,891 | | | | 2,892 | |
| Shares redeemed | | | (699,624 | ) | | | (2,107,447 | ) | | | (6,021 | ) | | | (3,405 | ) | | | (16,326 | ) | | | (6,959 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (548,029 | ) | | | (1,515,444 | ) | | | (5,458 | ) | | | 10,525 | | | | 39,795 | | | | 117,637 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Markets Fixed Income ($) |
| Shares sold | | $ | 1,394,440 | | | $ | 5,985,060 | | | $ | (2,084 | ) | | $ | 129,139 | | | $ | 535,599 | | | $ | 1,261,502 | |
| Reinvestment of distributions | | | 141,358 | | | | 174,982 | | | | 7,791 | | | | 14,047 | | | | 29,140 | | | | 29,610 | |
| Shares redeemed | | | (7,091,691 | ) | | | (21,814,799 | ) | | | (61,002 | ) | | | (34,681 | ) | | | (165,035 | ) | | | (71,700 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (5,555,893 | ) | | $ | (15,654,757 | ) | | $ | (55,295 | ) | | $ | 108,505 | | | $ | 399,704 | | | $ | 1,219,412 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | | | | | |
| | | Six Months
| | December 20,
| | | | | | | | |
| | | Ended
| | 2006(1) to
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Markets Fixed Income
(Number of Shares) |
| Shares sold | | | 6,439,444 | | | | 29,241,272 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 1,000,825 | | | | 617,893 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (8,202,775 | ) | | | (601,326 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | (762,506 | ) | | | 29,257,839 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Emerging Markets Fixed Income ($) |
| Shares sold | | $ | 64,701,228 | | | $ | 303,520,569 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 10,095,856 | | | | 6,243,231 | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | (82,162,819 | ) | | | (6,041,783 | ) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | (7,365,735 | ) | | $ | 303,722,017 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Bond
(Number of Shares) |
| Shares sold | | | 4,864,525 | | | | 274,870 | | | | 290,825 | | | | 33,601 | | | | 2,102,607 | | | | 160,111 | |
| Reinvestment of distributions | | | 106,951 | | | | 3,007 | | | | 6,284 | | | | 658 | | | | 40,829 | | | | 673 | |
| Shares redeemed | | | (394,543 | ) | | | (66,579 | ) | | | (12,809 | ) | | | (4,564 | ) | | | (157,927 | ) | | | (10,660 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 4,576,933 | | | | 211,298 | | | | 284,300 | | | | 29,695 | | | | 1,985,509 | | | | 150,124 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Bond ($) |
| Shares sold | | $ | 53,253,331 | | | $ | 2,826,384 | | | $ | 3,184,818 | | | $ | 339,806 | | | $ | 22,960,344 | | | $ | 1,646,890 | |
| Reinvestment of distributions | | | 1,172,489 | | | | 30,842 | | | | 68,640 | | | | 6,727 | | | | 448,444 | | | | 6,965 | |
| Shares redeemed | | | (4,342,621 | ) | | | (676,036 | ) | | | (139,934 | ) | | | (45,456 | ) | | | (1,725,780 | ) | | | (108,978 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 50,083,199 | | | $ | 2,181,190 | | | $ | 3,113,524 | | | $ | 301,077 | | | $ | 21,683,008 | | | $ | 1,544,877 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
145
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | | | | | | | |
| | | Six Months
| | | | | | | | | | |
| | | Ended
| | Year Ended
| | | | | | | | |
| | | April 30,
| | October 31,
| | | | | | | | |
| | | 2008 | | 2007 | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Bond
(Number of Shares) |
| Shares sold | | | 121,453 | | | | 1 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 323 | | | | — | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 121,776 | | | | 1 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Global Bond ($) |
| Shares sold | | $ | 1,317,350 | | | $ | 10 | | | | | | | | | | | | | | | | | |
| Reinvestment of distributions | | | 3,489 | | | | — | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | — | | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 1,320,839 | | | $ | 10 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | Class B | | Class C |
| | | Six Months
| | | | Six Months
| | | | Six Months
| | |
| | | Ended
| | Year Ended
| | Ended
| | Year Ended
| | Ended
| | Year Ended
|
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | October 31,
|
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | 2007 |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diversified International
(Number of Shares) |
| Shares sold | | | 6,128,590 | | | | 14,796,567 | | | | 458,724 | | | | 1,227,737 | | | | 2,311,011 | | | | 6,505,341 | |
| Reinvestment of distributions | | | 515,063 | | | | 58,638 | | | | 48,511 | | | | 1,114 | | | | 164,842 | | | | 4,093 | |
| Shares redeemed | | | (4,209,632 | ) | | | (3,910,709 | ) | | | (385,799 | ) | | | (282,859 | ) | | | (1,432,713 | ) | | | (1,190,161 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase in shares outstanding | | | 2,434,021 | | | | 10,944,496 | | | | 121,436 | | | | 945,992 | | | | 1,043,140 | | | | 5,319,273 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diversified International ($) |
| Shares sold | | $ | 80,418,516 | | | $ | 196,674,148 | | | $ | 6,032,184 | | | $ | 16,173,010 | | | $ | 30,512,090 | | | $ | 85,984,708 | |
| Reinvestment of distributions | | | 6,979,408 | | | | 727,447 | | | | 654,909 | | | | 13,771 | | | | 2,222,086 | | | | 50,585 | |
| Shares redeemed | | | (53,829,083 | ) | | | (51,884,948 | ) | | | (4,851,123 | ) | | | (3,741,472 | ) | | | (18,146,507 | ) | | | (15,544,550 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase | | $ | 33,568,841 | | | $ | 145,516,647 | | | $ | 1,835,970 | | | $ | 12,445,309 | | | $ | 14,587,669 | | | $ | 70,490,743 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class I | | Class R | | Class W | | |
| | | Six Months
| | | | Six Months
| | December 12,
| | February 12,
| | |
| | | Ended
| | Year Ended
| | Ended
| | 2006(1) to
| | 2008(1) to
| | |
| | | April 30,
| | October 31,
| | April 30,
| | October 31,
| | April 30,
| | |
| | | 2008 | | 2007 | | 2008 | | 2007 | | 2008 | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diversified International
(Number of Shares) |
| Shares sold | | | — | | | | 36,440 | | | | 1,146 | | | | 39,818 | | | | 54,286 | | | | | |
| Reinvestment of distributions | | | 57 | | | | 4 | | | | 655 | | | | 38 | | | | — | | | | | |
| Shares redeemed | | | (47 | ) | | | (34,712 | ) | | | (4,227 | ) | | | (10,702 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in shares outstanding | | | 10 | | | | 1,732 | | | | (2,426 | ) | | | 29,154 | | | | 54,286 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Diversified International ($) |
| Shares sold | | $ | — | | | $ | 522,197 | | | $ | 14,594 | | | $ | 502,116 | | | $ | 688,731 | | | | | |
| Reinvestment of distributions | | | 766 | | | | 55 | | | | 8,800 | | | | 472 | | | | — | | | | | |
| Shares redeemed | | | (640 | ) | | | (476,693 | ) | | | (52,912 | ) | | | (144,253 | ) | | | — | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) | | $ | 126 | | | $ | 45,559 | | | $ | (29,518 | ) | | $ | 358,335 | | | $ | 688,731 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Commencement of operations |
146
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 12 — 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.
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial
| | | | | | Percent
|
| | | | | | | Acquisition
| | | | | | of Net
|
Fund | | Security | | Shares | | Date | | Cost | | Value | | Assets |
| |
| Global Natural Resources | | Silver Bear Resources, Inc.-PIPE | | | 293,709 | | | | 03/19/07 | | | $ | 249,403 | | | $ | 232,339 | | | | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 249,403 | | | $ | 232,339 | | | | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Disciplined International SmallCap | | Octaviar Ltd. | | | 67,247 | | | | 06/28/07 | | | $ | 293,034 | | | $ | 62,813 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 293,034 | | | $ | 62,813 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Foreign | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | $ | 303,609 | | | $ | 232,328 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 186,682 | | | | 122,696 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 172,879 | | | | 122,392 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 374,865 | | | | 266,089 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 204,015 | | | | 136,864 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 926,675 | | | | 773,508 | | | | 0.1 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 140,772 | | | | 153,889 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 35,926 | | | | 35,443 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 245,030 | | | | 170,510 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 54,425 | | | | 47,755 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 42,585 | | | | 38,621 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 103,700 | | | | 84,269 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 64,941 | | | | 77,940 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 56,976 | | | | 63,631 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 103,337 | | | | 116,288 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 13,706 | | | | 23,817 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 58,347 | | | | 53,823 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 40,302 | | | | 41,014 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 8,886 | | | | 8,839 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 449,942 | | | | 604,820 | | | | 0.1 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 63,608 | | | | 146,525 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 511,782 | | | | 565,250 | | | | 0.1 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | 110,776 | | | | 94,500 | | | | 0.0 | % |
| | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys-REG S GDR) | | | 35 | | | | 11/21/07 | | | | — | | | | — | | | | 0.0 | % |
| | | Silvinit | | | 3,602 | | | | 05/10/07 | | | | 1,353,792 | | | | 2,791,550 | | | | 0.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 5,627,554 | | | $ | 6,772,361 | | | | 1.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
147
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 12 — ILLIQUID SECURITIES (continued)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Initial
| | | | | | Percent
|
| | | | | | | Acquisition
| | | | | | of Net
|
Fund | | Security | | Shares | | Date | | Cost | | Value | | Assets |
| |
International
SmallCap Multi-Manager | | Atlas Iron Ltd. | | | 350,933 | | | | 01/31/08 | | | $ | 611,140 | | | $ | 1,019,306 | | | | 0.2 | % |
| | | Hong Leong Asia Ltd. | | | 542,000 | | | | 06/11/07 | | | | 1,191,033 | | | | 1,065,511 | | | | 0.2 | % |
| | | JM AB-Rights | | | 262,800 | | | | 04/30/08 | | | | — | | | | 221,537 | | | | 0.2 | % |
| | | MFS Technology Ltd. | | | 19,000 | | | | 01/25/06 | | | | 9,612 | | | | 4,554 | | | | 0.2 | % |
| | | Octaviar Ltd. | | | 673,856 | | | | 09/11/06 | | | | 2,852,642 | | | | 629,427 | | | | 0.2 | % |
| | | SeAH Steel Corp. | | | 26,220 | | | | 03/04/05 | | | | 944,988 | | | | 1,224,197 | | | | 0.2 | % |
| | | Vitec Group PLC | | | 95,200 | | | | 03/15/07 | | | | 1,066,102 | | | | 858,972 | | | | 0.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 6,675,517 | | | $ | 5,023,504 | | | | 1.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
NOTE 13 — REORGANIZATION
On December 9, 2007, Index Plus International Equity, as listed below (“Acquiring Fund”), acquired the assets and certain liabilities of ING International Equity Fund, also listed below (“Acquired Fund”), in a tax-free reorganization in exchange for shares of the Acquiring Fund, pursuant to a plan or reorganization approved by the Acquired Fund’s shareholders. The number and value of shares issued by the Acquiring Fund are presented in Note 11 — Capital Share Transactions. Net assets and unrealized appreciation as of the reorganization date were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | Acquired
| | | | |
| | | | | | | | | Capital Loss
| | Acquired Portfolio
| | |
Acquiring
| | Acquired
| | Total Net Assets of
| | Total Net Assets of
| | Carry forward
| | Unrealized
| | Conversion
|
Fund | | Fund | | Acquired Fund (000’s) | | Acquiring Fund (000’s) | | (000’s) | | Depreciation (000’s) | | Ratio |
| |
Index Plus
International
Equity | | ING International
Equity Fund | | $ | 128,431 | | | $ | 122,957 | | | $ | 13,594 | | | $ | 3,120 | | | | 1.0243 | |
The net assets of Index Plus International Equity after the acquisition were $251,388,007.
NOTE 14 — CONCENTRATION OF RISKS
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 which could affect the market and/or credit risk of the Funds’ and Underlying Funds’ investments.
Emerging Markets Investments (All Funds except Index Plus International Equity). Because of less developed markets and economies and, in some countries, less mature governments and governmental institutions, the risks of investing in foreign securities can be intensified in the case of investments in issuers domiciled or doing substantial business in emerging market countries.
Industry Concentration (Global Natural Resources, Global Real Estate Asia-Pacific Real Estate, European Real Estate and International Real Estate). As a result of each Fund and Underlying Funds concentrating its assets in securities related to a particular industry, each Fund or Underlying Fund may be subject to greater market fluctuation than a fund that invests in securities representing a broader range of investment alternatives.
Geographic Concentration (Asia-Pacific Real Estate, European Real Estate, Greater China and Russia). As a result of each Fund concentrating its assets in a single region of the world, each Fund’s performance may be more volatile than that of a fund that invests globally. If securities in the region that each Fund is concentrated fall out of favor, it may cause a Fund to underperform in relation to funds that focus on other types of stocks.
Non-Diversified (Global Natural Resources, Global Real Estate, Asia-Pacific Real Estate Disciplined International SmallCap, European Real Estate Greater China, International Real Estate, Russia, Emerging Markets Fixed Income and Global Bond). The Funds and Underlying Funds are each classified as non-diversified investment companies under the 1940
148
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 14 — CONCENTRATION OF RISKS (continued)
Act, which means that each Fund or Underlying Fund is 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 Funds’ 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.
Restricted and Illiquid Securities (Greater China, Russia and Emerging Markets Fixed Income). If a security is illiquid, a Fund may not be able to sell the security at a time when the Investment Adviser or a Sub-Adviser might wish to sell, and the security could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, which could vary from the amount a Fund could realize upon disposition. Restricted securities, i.e., securities subject to legal or contractual restrictions on resale, may be illiquid. However, some restricted securities may be treated as liquid, although they may be less liquid than registered securities traded on established secondary markets.
Rule 144A Securities (Global Real Estate, Global Value Choice, Asia-Pacific Real Estate, European Real Estate, Greater China, International Real Estate, and International Value Choice). Rule 144A securities are securities that are not registered, but which are bought and sold solely by institutional investors. The Fund generally considers Rule 144A securities to be “liquid” although the market for such securities typically is less active than public securities markets and may lead to less ability to sell these securities.
NOTE 15 — SECURITIES LENDING
Under an agreement with 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 must be in an amount 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 cash collateral received is invested in approved investments as defined in the Securities Lending Agreement with BNY (the “Agreement”). The securities purchased with cash collateral received are reflected in the Portfolio of Investments. 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. The Funds bear 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. At April 30, 2008, the following Funds had securities on loan with the following market values:
| | | | | | | | | |
| | | Value of
| | |
| | | Securities
| | Value of
|
Fund | | Loaned | | Collateral |
| |
| Global Equity Dividend | | $ | 24,920,677 | | | $ | 26,118,895 | |
| Global Real Estate | | | 278,334,069 | | | | 287,051,807 | |
| Global Value Choice | | | 27,495,553 | | | | 28,197,205 | |
| Emerging Countries | | | 40,938,398 | | | | 41,426,178 | |
| Foreign | | | 35,644,703 | | | | 36,733,478 | |
| International Growth Opportunities | | | 6,802,640 | | | | 6,906,030 | |
International SmallCap Multi-Manager | | | 18,839,445 | | | | 20,033,988 | |
| International Value | | | 176,689,317 | | | | 184,006,441 | |
| Russia | | | 171,977,516 | | | | 176,807,367 | |
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 16 — 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, investments in passive foreign investment companies, and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as return of capital.
Dividends paid by the 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
| | Year Ended
|
| | | April 30, 2008 | | October 31, 2007 |
| | | | | | | | | | | Dividends Paid
|
| | | Ordinary
| | Long-Term
| | Ordinary
| | Long-Term
| | Deduction on
|
| | | Income | | Capital Gains | | Income | | Capital Gains | | Redemptions |
| |
| Global Equity Dividend | | $ | 11,397,112 | | | $ | 20,217,007 | | | $ | 18,796,716 | | | $ | 3,818,557 | | | $ | — | |
| Global Natural Resources | | | 20,563,562 | | | | 7,610,745 | | | | 2,937,873 | | | | 3,999,909 | | | | — | |
Global Real Estate(1) | | | 37,617,882 | | | | 1,788,821 | | | | 51,930,847 | | | | 8,533,607 | | | | — | |
| Global Value Choice | | | 453,191 | | | | — | | | | — | | | | — | | | | — | |
| Asia-Pacific Real Estate | | | 31,011 | | | | — | | | | — | | | | — | | | | — | |
| Disciplined International SmallCap | | | 10,885,408 | | | | — | | | | — | | | | — | | | | — | |
| Emerging Countries | | | 3,353,453 | | | | 8,939,884 | | | | 2,943,119 | | | | — | | | | — | |
| European Real Estate | | | 18,022 | | | | — | | | | — | | | | — | | | | — | |
| Foreign | | | 4,162,848 | | | | 40,260,048 | | | | 5,017,181 | | | | 12,877,280 | | | | — | |
| Greater China | | | 6,809,182 | | | | 1,425,432 | | | | 143,130 | | | | — | | | | — | |
| Index Plus International Equity | | | 11,799,120 | | | | 2,720,870 | | | | 3,219,136 | | | | — | | | | — | |
| International Capital Appreciation | | | 5,738,481 | | | | 1,234,072 | | | | 1,644,836 | | | | — | | | | — | |
| International Equity Dividend | | | 1,150,728 | | | | — | | | | — | | | | — | | | | — | |
| International Growth Opportunities | | | 10,462,421 | | | | 10,799,081 | | | | 3,156,568 | | | | 9,769,639 | | | | — | |
| International Real Estate | | | 22,215,317 | | | | — | | | | 5,257,673 | | | | — | | | | — | |
| International SmallCap Multi-Manager | | | 78,370,081 | | | | 66,303,339 | | | | 3,451,506 | | | | — | | | | — | |
| International Value | | | 169,348,534 | | | | 657,984,681 | | | | 122,228,627 | | | | 402,826,028 | | | | — | |
| International Value Choice | | | 4,881,115 | | | | 7,701,519 | | | | 1,154,606 | | | | 379,371 | | | | — | |
| International Value Opportunities | | | 252,864 | | | | — | | | | — | | | | — | | | | — | |
| Russia | | | — | | | | 137,654,710 | | | | — | | | | 43,574,710 | | | | 139 | |
| Emerging Markets Fixed Income | | | 10,396,232 | | | | — | | | | 7,701,124 | | | | — | | | | — | |
| Global Bond | | | 3,827,347 | | | | — | | | | 1,570,829 | | | | 8,117 | | | | — | |
| Diversified International | | | 11,313,774 | | | | 1,928,636 | | | | 1,063,277 | | | | — | | | | 19,330 | |
| | | | | | | | | | | | | | | | | | | | | |
| | |
| (1) | | Composition of dividends and distributions presented herein is based on the Fund’s tax year-end of December 31. |
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, 2007 were:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Undistributed
| | | | | | | | |
| | | | | Long
| | | | Post-October
| | | | |
| | | Undistributed
| | Term
| | Unrealized
| | Currency
| | Capital
| | |
| | | Ordinary
| | Capital
| | Appreciation/
| | Losses
| | Loss
| | Expiration
|
| | | Income | | Gains | | (Depreciation) | | Deferred | | Carryforwards | | Dates |
| |
| Global Equity Dividend | | $ | 8,910,172 | | | $ | 20,212,116 | | | $ | 29,314,208 | | | $ | — | | | $ | — | | | | — | |
| Global Natural Resources | | | 19,813,418 | | | | 7,608,261 | | | | 30,452,308 | | | | — | | | | — | | | | — | |
Global Real Estate(1) | | | 18,943,194 | | | | 1,254,042 | | | | 163,390,908 | | | | (203,868 | ) | | | — | | | | — | |
| Global Value Choice | | | 452,143 | | | | — | | | | 18,664,718 | | | | — | | | | (67,231,400 | ) | | | 2009 | |
| | | | | | | | | | | | | | | | | | | | (81,779,077 | ) | | | 2010 | |
| | | | | | | | | | | | | | | | | | | | (6,183,953 | ) | | | 2011 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (155,194,430 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
150
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 16 — FEDERAL INCOME TAXES (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Undistributed
| | | | | | | | |
| | | | | Long
| | | | Post-October
| | | | |
| | | Undistributed
| | Term
| | Unrealized
| | Currency
| | Capital
| | |
| | | Ordinary
| | Capital
| | Appreciation/
| | Losses
| | Loss
| | Expiration
|
| | | Income | | Gains | | (Depreciation) | | Deferred | | Carryforwards | | Dates |
| |
| Disciplined International SmallCap | | | 10,387,969 | | | | — | | | | 17,136,239 | | | | — | | | | — | | | | — | |
| Emerging Countries | | | 3,139,691 | | | | 8,937,268 | | | | 57,601,834 | | | | — | | | | (3,321,810 | )* | | | 2008 | |
| Foreign | | | 4,110,078 | | | | 39,829,512 | | | | 209,255,862 | | | | — | | | | — | | | | — | |
| Greater China | | | 6,797,514 | | | | 1,424,320 | | | | 32,978,404 | | | | — | | | | — | | | | — | |
| Index Plus International Equity | | | 11,776,394 | | | | 2,716,188 | | | | 13,018,816 | | | | — | | | | — | | | | — | |
| International Capital Appreciation | | | 5,727,180 | | | | 1,233,537 | | | | 26,048,539 | | | | — | | | | — | | | | — | |
| International Equity Dividend | | | 539,747 | | | | — | | | | 3,206,366 | | | | — | | | | — | | | | — | |
| International Growth Opportunities | | | 10,460,955 | | | | 10,794,409 | | | | 25,331,782 | | | | — | | | | (1,838,679 | )* | | | 2008 | |
| International Real Estate | | | 18,778,690 | | | | — | | | | 49,465,611 | | | | — | | | | (26,312 | ) | | | 2014 | |
| | | | | | | | | | | | | | | | | | | | (2,515,843 | ) | | | 2015 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (2,542,155 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| International SmallCap | | | 78,354,785 | | | | 66,294,175 | | | | 209,962,864 | | | | — | | | | — | | | | — | |
| International Value | | | 169,333,918 | | | | 657,964,463 | | | | 1,217,966,130 | | | | — | | | | — | | | | — | |
| International Value Choice | | | 4,878,165 | | | | 7,696,698 | | | | 7,917,237 | | | | — | | | | — | | | | — | |
| International Value Opportunities | | | 248,964 | | | | — | | | | 408,770 | | | | — | | | | — | | | | — | |
| Russia | | | — | | | | 137,645,235 | | | | 448,582,297 | | | | — | | | | — | | | | — | |
| Emerging Markets Fixed Income | | | — | | | | — | | | | 601,729 | | | | — | | | | (593,649 | ) | | | 2015 | |
| Global Bond | | | 465,305 | | | | — | | | | 1,228,620 | | | | — | | | | — | | | | — | |
| Diversified International | | | 5,267,267 | | | | 1,925,350 | | | | 113,649,018 | | | | — | | | | — | | | | — | |
| |
| * | Utilization of these capital losses is subject to annual limitations under Section 382 of the Internal Revenue Code. |
| |
| (1) | As of the Fund’s tax year ended December 31, 2006. |
The Funds’ major tax jurisdictions are federal and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2002.
NOTE 17 — OTHER ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes.” This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained upon challenge by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 was effective for fiscal years beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. Acknowledging the unique issues that FIN 48 presents for investment companies that calculate NAVs, the SEC indicated that they would not object if a fund implemented FIN 48 in its NAV calculation as late as its last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more likely-than-not to be sustained as of the adoption date. Management of the Funds has analyzed the tax positions of the Funds. Upon adoption of FIN 48, we identified no uncertain tax positions that have not met the more likely-than-not standard.
On September 15, 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), “Fair Value Measurements.” The new accounting statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. SFAS No. 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). SFAS No. 157 also stipulates that, as a market-based measurement, fair value should be determined based on the assumptions that market participants would use in pricing the asset or liability, and
151
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 17 — OTHER ACCOUNTING PRONOUNCEMENTS (continued)
establishes a fair value hierarchy that distinguishes between (a) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (b) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. As of April 30, 2008, management of the Funds is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting SFAS No. 157.
On March 19, 2008, the FASB issued Statement of Financial Accounting Standards No. 161 (“SFAS No. 161”), “Disclosure about Derivative Instruments and Hedging Activities.” This new accounting statement requires enhanced disclosures about an entity’s derivative and hedging activities. Entities are required to provide enhanced disclosures about (a) how and why an entity invests in derivatives, (b) how derivatives are accounted for under Statement 133, and (c) how derivatives affect an entity’s financial position, financial performance, and cash flows. SFAS No. 161 also requires enhanced disclosures regarding credit-risk-related contingent features of derivative instruments. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. As of April 30, 2008, management of the Funds is currently assessing the impact of the expanded financial statement disclosures that will result from adopting SFAS No. 161.
NOTE 18 — SUBSEQUENT EVENTS
Subsequent to April 30, 2008, the following Fund paid dividends from net investment income:
| | | | | | | | | | | | | |
| | | Per Share
| | Payable
| | Record
|
| | | Amount | | Date | | Date |
| |
| Emerging Markets Fixed Income | | | | | | | | | | | | |
| Class A | | $ | 0.0550 | | | | May 5, 2008 | | | | April 30, 2008 | |
| Class B | | $ | 0.0491 | | | | May 5, 2008 | | | | April 30, 2008 | |
| Class C | | $ | 0.0492 | | | | May 5, 2008 | | | | April 30, 2008 | |
| Class I | | $ | 0.0575 | | | | May 5, 2008 | | | | April 30, 2008 | |
| Class A | | $ | 0.0500 | | | | June 4, 2008 | | | | May 30, 2008 | |
| Class B | | $ | 0.0438 | | | | June 4, 2008 | | | | May 30, 2008 | |
| Class C | | $ | 0.0438 | | | | June 4, 2008 | | | | May 30, 2008 | |
| Class I | | $ | 0.0522 | | | | June 4, 2008 | | | | May 30, 2008 | |
Effective June 13, 2008, Class O shares of Diversified International, Global Bond, Greater China and International SmallCap Multi-Manager commenced operations.
Effective May 1, 2008, Remco Vergeer was added as portfolio manager to Russia.
On March 27, 2008, the Board of IMF approved a change in the sub-adviser for Emerging Countries from Brandes Investment Partners, L.P. to ING Investment Management Advisors B.V. (“IIMA”) and subsequent changes to Emerging Countries’ principal investment strategies. IIMA will manage Emerging Countries pursuant to an interim sub-advisory agreement until a shareholder meeting to seek approval of a new sub-advisory agreement with IIMA can be held. A proxy statement is expected to be mailed to shareholders on or about June 26, 2008 and a special meeting of shareholders is expected to be held on or about August 21, 2008.
On March 27, 2008, the Board of IMT approved the addition of ING Investment Management Co. (“ING IM”) as a second sub-adviser to International Value and subsequent changes to the International Value’s principal investment strategies. A proxy statement discussing the addition of the second sub-adviser was mailed to shareholders on or about May 13, 2008. If shareholders approve the appointment of ING IM as an additional Sub-Adviser to International Value, it is expected that ING IM will begin managing a portion of International Value on or about July 16, 2008 and International Value will reopen to purchases by existing and new shareholders on or about August 1, 2008.
NOTE 19 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS
As discussed in earlier supplements that were previously filed with the SEC, ING Investments, the adviser to the ING Funds, has reported to the Boards of Directors/Trustees (the “Boards”) of the ING Funds that, like many U.S. financial services companies, ING Investments and certain of its U.S. affiliates have received informal and formal requests for information since September 2003 from various governmental and self-regulatory agencies in connection with investigations related to mutual funds and variable insurance products. ING Investments has advised the Boards that it and its affiliates have cooperated fully with each request.
In addition to responding to regulatory and governmental requests, ING Investments reported that management of U.S. affiliates of ING Groep N.V., including ING Investments (collectively, “ING”), on their
152
NOTES TO FINANCIAL STATEMENTS as of April 30, 2008 (Unaudited) (continued)
NOTE 19 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS (continued)
own initiative, have conducted, through independent special counsel and a national accounting firm, an extensive internal review of trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel. ING’s internal review related to mutual fund trading is now substantially completed. ING has reported that, of the millions of customer relationships that ING maintains, the internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within ING’s variable insurance and mutual fund products, and identified other circumstances where frequent trading occurred, despite measures taken by ING intended to combat market timing. ING further reported that each of these arrangements has been terminated and fully disclosed to regulators. The results of the internal review were also reported to the independent members of the Boards.
ING Investments has advised the Boards that most of the identified arrangements were initiated prior to ING’s acquisition of the businesses in question in the U.S. ING Investments further reported that the companies in question did not receive special benefits in return for any of these arrangements, which have all been terminated.
Based on the internal review, ING Investments has advised the Boards that the identified arrangements do not represent a systemic problem in any of the companies that were involved.
Despite the extensive internal review conducted through independent special counsel and a national accounting firm, there can be no assurance that the instances of inappropriate trading reported to the Boards are the only instances of such trading respecting the ING Funds.
ING Investments reported to the Boards that ING is committed to conducting its business with the highest standards of ethical conduct with zero tolerance for noncompliance. Accordingly, ING Investments advised the Boards that ING management was disappointed that its voluntary internal review identified these situations. Viewed in the context of the breadth and magnitude of its U.S. business as a whole, ING management does not believe that ING’s acquired companies had systemic ethical or compliance issues in these areas. Nonetheless, ING Investments reported that given ING’s refusal to tolerate any lapses, it has taken the steps noted below, and will continue to seek opportunities to further strengthen the internal controls of its affiliates.
| |
| • | ING has agreed with the ING Funds to indemnify and hold harmless the ING 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 SEC. ING Investments reported to the Boards that ING management believes that the total amount of any indemnification obligations will not be material to ING or its U.S. business. |
| |
| • | ING updated its Code of Conduct for employees reinforcing its employees’ obligation to conduct personal trading activity consistent with the law, disclosed limits, and other requirements. |
Other Regulatory Matters
The New York Attorney General and other federal and state regulators are also conducting broad inquiries and investigations involving the insurance industry. These initiatives currently focus on, among other things, compensation and other sales incentives; potential conflicts of interest; potential anti-competitive activity; reinsurance; marketing practices (including suitability); specific product types (including group annuities and indexed annuities); fund selection for investment products and brokerage sales; and disclosure. It is likely that the scope of these industry investigations will further broaden before they conclude. ING has received formal and informal requests in connection with such investigations, and is cooperating fully with each request.
Other federal and state regulators could initiate similar actions in this or other areas of ING’s businesses. These regulatory initiatives may result in new legislation and regulation that could significantly affect the financial services industry, including businesses in which ING is engaged. In light of these and other developments, ING continuously reviews whether modifications to its business practices are appropriate. At this time, in light of the current regulatory factors, ING U.S. is actively engaged in reviewing whether any modifications in our practices are appropriate for the future.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares, or other adverse consequences to ING Funds.
153
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 92.5% |
| | | | | | | |
| | | | | | | Australia: 6.1% |
| | 125,644 | | | | | Australia & New Zealand Banking Group Ltd. | | $ | 2,593,868 | |
| | 150,172 | | | | | Crown Ltd. | | | 1,554,314 | |
| | 575,698 | | | | | Foster’s Group Ltd. | | | 2,748,338 | |
| | 847,648 | | | | | Insurance Australia Group | | | 3,473,357 | |
| | 175,010 | | | | | Suncorp-Metway Ltd. | | | 2,250,916 | |
| | 122,307 | | | | | TABCORP Holdings Ltd. | | | 1,312,616 | |
| | 102,255 | | | | | Wesfarmers Ltd. | | | 3,579,288 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 17,512,697 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 3.2% |
| | 59,738 | | | | | Belgacom SA | | | 2,742,987 | |
| | 31,099 | | | L | | Elia System Operator SA | | | 1,384,380 | |
| | 187,090 | | | | | Fortis | | | 5,077,374 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,204,741 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.5% |
| | 278,388 | | | | | Hiscox Ltd. | | | 1,406,029 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,406,029 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 0.7% |
| | 84,609 | | | | | Tele Norte Leste Participacoes SA ADR | | | 1,938,392 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,938,392 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 3.8% |
| | 7,854 | | | @,# | | Bell Aliant Regional Communications Income Fund | | | 234,739 | |
| | 51,065 | | | | | Bell Aliant Regional Communications Income Fund | | | 1,526,220 | |
| | 42,056 | | | L | | Enerplus Resources Fund | | | 1,888,314 | |
| | 152,133 | | | | | Precision Drilling Trust | | | 3,806,724 | |
| | 90,582 | | | | | TransCanada Corp. | | | 3,318,912 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,774,909 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 0.9% |
| | 77,249 | | | | | Danske Bank A/S | | | 2,659,541 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,659,541 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 7.3% |
| | 31,921 | | | | | BNP Paribas | | | 3,402,933 | |
| | 79,685 | | | | | France Telecom SA | | | 2,493,417 | |
| | 38,728 | | | | | Sanofi-Aventis | | | 2,985,199 | |
| | 56,322 | | | | | Total SA | | | 4,717,876 | |
| | 40,749 | | | | | Vinci SA | | | 2,989,320 | |
| | 103,767 | | | | | Vivendi | | | 4,183,623 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,772,368 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 1.1% |
| | 84,211 | | | | | OPAP SA | | | 3,275,936 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,275,936 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.5% |
| | 198,168 | | | | | CLP Holdings Ltd. | | | 1,572,301 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,572,301 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hungary: 1.0% |
| | 106,742 | | | L | | Magyar Telekom Telecommunications PLC ADR | | | 2,854,281 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,854,281 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 1.2% |
| | 160,952 | | | | | Allied Irish Banks PLC | | | 3,362,019 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,362,019 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 0.7% |
| | 485,456 | | | | | Bank Hapoalim BM | | | 2,056,857 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,056,857 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 9.4% |
| | 327,633 | | | | | Enel S.p.A. | | | 3,554,862 | |
| | 122,610 | | | | | ENI S.p.A. | | | 4,719,083 | |
| | 444,365 | | | | | Intesa Sanpaolo S.p.A. | | | 3,303,358 | |
| | 99,564 | | | | | Italcementi S.p.A. RNC | | | 1,583,097 | |
| | 401,947 | | | | | Mediaset S.p.A. | | | 3,652,786 | |
| | 38,507 | | | | | Pirelli & C Real Estate S.p.A. | | | 1,155,145 | |
| | 460,065 | | | | | Snam Rete Gas S.p.A. | | | 2,907,699 | |
| | 1,385,886 | | | | | Telecom Italia S.p.A. RNC | | | 2,256,067 | |
| | 486,282 | | | | | UniCredito Italiano S.p.A. | | | 3,664,921 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,797,018 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 1.1% |
| | 76,626 | | | | | Royal Dutch Shell PLC | | | 3,071,218 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,071,218 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.5% |
| | 481,207 | | | | | Telecom Corp. of New Zealand Ltd. | | | 1,419,344 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,419,344 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 1.0% |
| | 201,949 | | | | | DnB NOR ASA | | | 2,997,986 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,997,986 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Poland: 1.0% |
| | 275,767 | | | | | Telekomunikacja Polska SA | | | 2,770,782 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,770,782 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.8% |
| | 147,000 | | | | | DBS Group Holdings Ltd. | | | 2,150,746 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,150,746 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.1% |
| | 58,609 | | | | | KT Corp. ADR | | | 1,355,040 | |
| | 25,771 | | | | | S-Oil Corp. | | | 1,734,653 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,089,693 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 1.0% |
| | 136,689 | | | | | Banco Santander Central Hispano SA | | | 2,956,049 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,956,049 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.6% |
| | 164,346 | | | | | Svenska Cellulosa AB — B Shares | | | 2,751,206 | |
| | 665,421 | | | | | Telefonaktiebolaget LM Ericsson | | | 1,680,846 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,432,052 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.2% |
| | 304,982 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 3,427,998 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,427,998 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.4% |
| | 179,100 | | | | | Siam Cement PCL | | | 1,218,867 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,218,867 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 17.6% |
| | 76,831 | | | | | AstraZeneca PLC | | | 3,223,186 | |
| | 227,113 | | | | | Aviva PLC | | | 2,821,395 | |
| | 316,886 | | | | | Barclays PLC | | | 2,865,251 | |
| | 413,742 | | | | | BBA Aviation PLC | | | 1,284,556 | |
| | 408,817 | | | | | BP PLC | | | 4,953,932 | |
| | 71,681 | | | | | British American Tobacco PLC | | | 2,688,913 | |
| | 308,982 | | | | | Cattles PLC | | | 1,460,208 | |
| | 72,484 | | | | | Diageo PLC | | | 1,478,357 | |
| | 993,729 | | | | | DSG International PLC | | | 1,281,951 | |
| | 192,556 | | | | | GlaxoSmithKline PLC | | | 4,259,565 | |
| | 178,195 | | | | | HSBC Holdings PLC | | | 3,094,158 | |
| | 1,189,242 | | | | | Legal & General Group PLC | | | 2,982,005 | |
| | 345,161 | | | | | Lloyds TSB Group PLC | | | 2,943,548 | |
| | 177,288 | | | | | Marks & Spencer Group PLC | | | 1,330,215 | |
See Accompanying Notes to Financial Statements
154
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 598,562 | | | | | Royal Bank of Scotland Group PLC | | $ | 4,051,287 | |
| | 106,619 | | | | | Severn Trent PLC | | | 3,078,926 | |
| | 326,280 | | | | | Tate & Lyle PLC | | | 3,414,481 | |
| | 218,812 | | | | | United Utilities PLC | | | 3,104,145 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 50,316,079 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 28.8% |
| | 82,435 | | | | | AGL Resources, Inc. | | | 2,802,790 | |
| | 57,718 | | | | | Altria Group, Inc. | | | 1,154,360 | |
| | 68,814 | | | | | Ameren Corp. | | | 3,121,403 | |
| | 62,121 | | | L | | Arthur J. Gallagher & Co. | | | 1,526,313 | |
| | 73,769 | | | | | AT&T, Inc. | | | 2,855,598 | |
| | 104,015 | | | L | | Bank of America Corp. | | | 3,904,723 | |
| | 172,062 | | | | | Bristol-Myers Squibb Co. | | | 3,780,202 | |
| | 171,182 | | | | | Citigroup, Inc. | | | 4,325,769 | |
| | 277,099 | | | L | | Citizens Communications Co. | | | 2,970,501 | |
| | 70,261 | | | L | | Consolidated Edison, Inc. | | | 2,922,858 | |
| | 73,005 | | | | | Dow Chemical Co. | | | 2,931,151 | |
| | 81,501 | | | | | Duke Energy Corp. | | | 1,492,283 | |
| | 93,105 | | | L | | Fifth Third Bancorp. | | | 1,995,240 | |
| | 116,513 | | | L | | First Horizon National Corp. | | | 1,258,340 | |
| | 122,391 | | | L | | Foot Locker, Inc. | | | 1,548,246 | |
| | 82,519 | | | | | General Electric Co. | | | 2,698,371 | |
| | 25,509 | | | | | Kinder Morgan Energy Partners LP | | | 1,493,297 | |
| | 90,961 | | | | | Kraft Foods, Inc. | | | 2,877,096 | |
| | 171,344 | | | L | | Leggett & Platt, Inc. | | | 2,844,310 | |
| | 142,065 | | | L | | Masco Corp. | | | 2,587,004 | |
| | 57,500 | | | | | MeadWestvaco Corp. | | | 1,512,250 | |
| | 69,386 | | | | | Merck & Co., Inc. | | | 2,639,443 | |
| | 169,182 | | | | | NiSource, Inc. | | | 3,028,358 | |
| | 203,758 | | | | | Pfizer, Inc. | | | 4,097,573 | |
| | 57,718 | | | @ | | Philip Morris International, Inc. | | | 2,945,350 | |
| | 36,585 | | | L | | Rayonier, Inc. | | | 1,537,668 | |
| | 46,378 | | | L | | Reynolds American, Inc. | | | 2,497,455 | |
| | 84,120 | | | | | Southern Co. | | | 3,131,788 | |
| | 62,362 | | | | | Spectra Energy Corp. | | | 1,540,341 | |
| | 92,239 | | | | | US Bancorp. | | | 3,125,980 | |
| | 51,154 | | | | | UST, Inc. | | | 2,663,589 | |
| | 83,339 | | | L | | Wachovia Corp. | | | 2,429,332 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 82,238,982 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $288,068,774) | | | 264,276,885 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 3.6% |
| | | | | | | |
| | | | | | | Australia: 1.1% |
| | 219,997 | | | | | Stockland | | | 1,498,433 | |
| | 90,922 | | | | | Westfield Group | | | 1,562,412 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,060,845 | |
| | | �� | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.6% |
| | 85,389 | | | @ | | Alstria Office AG | | | 1,631,745 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,631,745 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.5% |
| | 16,890 | | | | | Corio NV | | | 1,569,890 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,569,890 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 1.4% |
| | 51,660 | | | L | | Duke Realty Corp. | | | 1,261,537 | |
| | 47,561 | | | L | | Hospitality Properties Trust | | | 1,528,135 | |
| | 64,112 | | | L | | iStar Financial, Inc. | | | 1,234,156 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,023,828 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $12,155,452) | | | 10,286,308 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $300,224,226) | | | 274,563,193 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 9.1% |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 9.1% |
| $ | 26,118,895 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | $ | 26,118,895 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $26,118,895) | | | 26,118,895 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $326,343,121)* | | | 105.2 | % | | $ | 300,682,088 | |
| | | | | Other Assets and
Liabilities - Net | | | (5.2 | ) | | | (14,890,609 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 285,791,479 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| | | |
| * | | Cost for federal income tax purposes is $327,329,614. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 11,780,650 | |
| Gross Unrealized Depreciation | | | (38,428,176 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (26,647,526 | ) |
| | | | | |
See Accompanying Notes to Financial Statements
155
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 0.5 | % |
| Agriculture | | | 4.2 | |
| Banks | | | 21.7 | |
| Beverages | | | 1.5 | |
| Building Materials | | | 1.9 | |
| Chemicals | | | 1.0 | |
| Diversified | | | 2.0 | |
| Diversified Financial Services | | | 2.0 | |
| Electric | | | 6.0 | |
| Engineering & Construction | | | 1.1 | |
| Entertainment | | | 1.6 | |
| Food | | | 2.2 | |
| Forest Products & Paper | | | 2.0 | |
| Gas | | | 3.1 | |
| Hotels | | | 0.5 | |
| Insurance | | | 4.3 | |
| Lodging | | | 0.5 | |
| Media | | | 2.7 | |
| Miscellaneous Manufacturing | | | 3.2 | |
| Office Property | | | 0.6 | |
| Oil & Gas | | | 8.7 | |
| Pharmaceuticals | | | 7.3 | |
| Pipelines | | | 2.2 | |
| Real Estate | | | 0.4 | |
| Retail | | | 1.5 | |
| Semiconductors | | | 1.2 | |
| Shopping Centers | | | 0.5 | |
| Telecommunications | | | 9.5 | |
| Water | | | 2.2 | |
| Short-Term Investments | | | 9.1 | |
| Other Assets and Liabilities — Net | | | (5.2 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
156
PORTFOLIO OF INVESTMENTS
ING Global Natural Resources Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 100.3% |
| | | | | | | |
| | | | | | | Australia: 2.3% |
| | 73,393 | | | @ | | Aquarius Platinum Ltd. | | $ | 1,146,352 | |
| | 923,215 | | | | | Boart Longyear Group | | | 1,649,610 | |
| | 333,200 | | | @ | | Centamin Egypt Ltd. | | | 443,340 | |
| | 100,238 | | | @ | | White Energy Co., Ltd. | | | 255,479 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,494,781 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Barbados: 2.0% |
| | 82,200 | | | @ | | Nabors Industries Ltd. | | | 3,085,788 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,085,788 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.4% |
| | 110,700 | | | @ | | Energy XXI Acquisition Corp. Bermuda Ltd. | | | 536,895 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 536,895 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 1.1% |
| | 43,300 | | | | | Cia Vale do Rio Doce ADR | | | 1,692,164 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,692,164 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 21.9% |
| | 8,700 | | | | | Agnico-Eagle Mines Ltd. | | | 543,315 | |
| | 6,900 | | | | | Barrick Gold Corp. | | | 266,478 | |
| | 56,900 | | | | | Canadian Natural Resources Ltd. | | | 4,836,500 | |
| | 425,056 | | | @ | | Catalyst Paper Corp. | | | 422,059 | |
| | 256,500 | | | @ | | Consolidated Thompson Iron Mines Ltd. | | | 2,040,080 | |
| | 107,000 | | | @ | | Eldorado Gold Corp. | | | 729,908 | |
| | 72,700 | | | | | Encana Corp. | | | 5,874,887 | |
| | 236,600 | | | @ | | European Goldfields Ltd. | | | 1,282,729 | |
| | 8,100 | | | | | First Quantum Minerals Ltd. | | | 711,233 | |
| | 33,892 | | | @ | | FNX Mining Co., Inc. | | | 841,327 | |
| | 16,063 | | | @ | | Franco-Nevada Corp. | | | 285,501 | |
| | 16,100 | | | @,# | | Franco-Nevada Corp. | | | 285,775 | |
| | 281,200 | | | @ | | Frontera Copper Corp. | | | 1,359,789 | |
| | 49,749 | | | | | GoldCorp, Inc. | | | 1,777,034 | |
| | 79,600 | | | @ | | MAG Silver Corp. | | | 848,087 | |
| | 13,200 | | | @ | | Major Drilling Group International | | | 676,973 | |
| | 137,200 | | | @ | | Premier Gold Mines Ltd. | | | 258,842 | |
| | 34,900 | | | @ | | QuADRa Mining Ltd. | | | 788,031 | |
| | 404,700 | | | @ | | Shore Gold, Inc. | | | 1,462,723 | |
| | 163,100 | | | @ | | Silver Bear Resources, Inc. | | | 387,061 | |
| | 293,709 | | | I | | Silver Bear Resources, Inc. — PIPE | | | 232,339 | |
| | 83,175 | | | @ | | Silver Wheaton Corp. | | | 1,103,732 | |
| | 24,400 | | | @ | | Sino-Forest Corp. | | | 369,477 | |
| | 30,800 | | | | | Suncor Energy, Inc. | | | 3,470,852 | |
| | 17,364 | | | | | Teck Cominco Ltd. | | | 758,286 | |
| | 25,144 | | | | | TransCanada Corp | | | 923,791 | |
| | 49,800 | | | @ | | Viterra, Inc. | | | 680,912 | |
| | 52,036 | | | | | Yamana Gold, Inc. | | | 667,102 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 33,884,823 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 1.4% |
| | 26,500 | | | | | Total SA ADR | | | 2,226,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,226,000 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 1.0% |
| | 20,300 | | | | | ENI S.p.A. ADR | | | 1,563,506 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,563,506 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.7% |
| | 52,400 | | | | | Royal Dutch Shell PLC ADR — Class A | | | 4,208,244 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,208,244 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 1.9% |
| | 81,200 | | | | | Statoil ASA ADR | | | 2,937,004 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,937,004 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 0.9% |
| | 129,235 | | | @ | | First Uranium Corp. | | | 841,805 | |
| | 854,618 | | | @ | | Merafe Resources Ltd. | | | 392,821 | |
| | 68,496 | | | | | Sentula Mining Ltd. | | | 162,568 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,397,194 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 0.9% |
| | 18,538 | | | | | Xstrata PLC | | | 1,443,249 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,443,249 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.9% |
| | 29,900 | | | | | Randgold Resources Ltd. ADR | | | 1,361,048 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,361,048 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 62.9% |
| | 39,500 | | | | | Anadarko Petroleum Corp. | | | 2,629,120 | |
| | 46,350 | | | | | Apache Corp. | | | 6,242,418 | |
| | 36,200 | | | | | Baker Hughes, Inc. | | | 2,927,856 | |
| | 112,300 | | | | | BJ Services Co. | | | 3,174,721 | |
| | 92,700 | | | | | Chevron Corp. | | | 8,913,105 | |
| | 5,700 | | | | | Cleveland-Cliffs, Inc. | | | 914,280 | |
| | 83,200 | | | | | ConocoPhillips | | | 7,167,680 | |
| | 17,100 | | | | | Consol Energy, Inc. | | | 1,384,416 | |
| | 48,400 | | | | | Devon Energy Corp. | | | 5,488,560 | |
| | 13,042 | | | | | Diana Shipping, Inc. | | | 395,955 | |
| | 68,700 | | | | | El Paso Corp. | | | 1,177,518 | |
| | 128,700 | | | | | ExxonMobil Corp. | | | 11,978,107 | |
| | 24,300 | | | | | Freeport-McMoRan Copper & Gold, Inc. | | | 2,764,125 | |
| | 19,500 | | | @ | | Global Industries Ltd. | | | 311,220 | |
| | 129,800 | | | | | Halliburton Co. | | | 5,959,118 | |
| | 29,750 | | | | | Hess Corp. | | | 3,159,450 | |
| | 62,100 | | | @ | | Key Energy Services, Inc. | | | 850,770 | |
| | 35,500 | | | | | Marathon Oil Corp. | | | 1,617,735 | |
| | 28,100 | | | | | Noble Energy, Inc. | | | 2,444,700 | |
| | 70,800 | | | | | Occidental Petroleum Corp. | | | 5,891,268 | |
| | 115,100 | | | | | Patterson-UTI Energy, Inc. | | | 3,215,894 | |
| | 10,800 | | | @ | | Plains Exploration & Production Co. | | | 672,624 | |
| | 47,000 | | | | | Schlumberger Ltd. | | | 4,725,850 | |
| | 58,500 | | | | | Spectra Energy Corp. | | | 1,444,950 | |
| | 47,100 | | | | | Sunoco, Inc. | | | 2,185,911 | |
| | 45,100 | | | | | Tidewater, Inc. | | | 2,941,422 | |
| | 27,904 | | | @ | | Transocean, Inc. | | | 4,114,724 | |
| | 5,000 | | | | | United States Steel Corp. | | | 769,750 | |
| | 30,125 | | | | | XTO Energy, Inc. | | | 1,863,533 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 97,326,780 | |
| | | | | | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $134,633,766)* | | | 100.3 | % | | $ | 155,157,476 | |
| | | | | Other Assets and
Liabilities - Net | | | (0.3 | ) | | | (404,131 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 154,753,345 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
| I | | Illiquid security |
| | | |
| * | | Cost for federal income tax purposes is $135,154,288. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 22,930,199 | |
| Gross Unrealized Depreciation | | | (2,927,011 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 20,003,188 | |
| | | | | |
See Accompanying Notes to Financial Statements
157
PORTFOLIO OF INVESTMENTS
ING Global Natural Resources Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Coal | | | 1.1 | % |
| Engineering & Construction | | | 1.1 | |
| Forest Products & Paper | | | 0.5 | |
| Iron/Steel | | | 2.4 | |
| Mining | | | 16.5 | |
| Oil & Gas | | | 59.6 | |
| Oil & Gas Services | | | 14.2 | |
| Pipelines | | | 2.3 | |
| Transportation | | | 2.6 | |
| Other Assets and Liabilities — Net | | | (0.3 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
158
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 27.3% |
| | | | | | | |
| | | | | | | Austria: 0.2% |
| | 19,460 | | | @ | | CA Immobilien Anlagen AG | | $ | 452,483 | |
| | 206,140 | | | @ | | Meinl European Land Ltd. | | | 2,688,274 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,140,757 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 0.6% |
| | 707,700 | | | @ | | BR Malls Participacoes SA | | | 7,663,699 | |
| | 517,500 | | | | | | | | | | | | | |
| | | | | Brascan Residential Properties
SA (Issuer: Merrill Lynch) | | | 2,848,710 | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | 10,512,409 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 0.5% |
| | 391,800 | | | L | | Brookfield Properties Co. (U.S. Denominated Security) | | | 7,886,934 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,886,934 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.8% |
| | 2,260,985 | | | | | Citycon OYJ | | | 13,125,829 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,125,829 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.1% |
| | 19,440 | | | | | Deutsche Euroshop AG | | | 825,299 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 825,299 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 12.3% |
| | 3,870,400 | | | | | Cheung Kong Holdings Ltd. | | | 60,453,364 | |
| | 3,063,100 | | | | | Hang Lung Group Ltd. | | | 16,484,441 | |
| | 4,300,300 | | | | | Hang Lung Properties Ltd. | | | 17,458,455 | |
| | 1,815,600 | | | | | Hongkong Land Holdings Ltd. | | | 8,241,913 | |
| | 2,518,100 | | | | | Kerry Properties Ltd. | | | 17,048,802 | |
| | 4,639,600 | | | | | Shui On Land Ltd. | | | 4,611,036 | |
| | 5,307,500 | | | | | Sino Land Co. | | | 13,384,093 | |
| | 3,062,700 | | | | | Sun Hung Kai Properties Ltd. | | | 53,525,399 | |
| | 1,920,375 | | | | | Wharf Holdings Ltd. | | | 9,711,699 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 200,919,202 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 0.5% |
| | 1,023,600 | | | @ | | Unitech Ltd. (Global Instrument, Issuer: Macquarie Group Ltd.) | | | 7,830,875 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,830,875 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 9.6% |
| | 2,600,600 | | | | | Mitsubishi Estate Co., Ltd. | | | 75,630,355 | |
| | 2,421,300 | | | | | Mitsui Fudosan Co., Ltd. | | | 61,186,062 | |
| | 3,238 | | | | | NTT Urban Development Corp. | | | 5,023,790 | |
| | 594,100 | | | | | Sumitomo Realty & Development Co., Ltd. | | | 14,891,677 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 156,731,884 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 1.0% |
| | 3,137,400 | | | | | CapitaLand Ltd. | | | 15,812,501 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,812,501 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 0.5% |
| | 887,660 | | | | | Hufvudstaden AB | | | 8,730,776 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,730,776 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 0.6% |
| | 166,700 | | | @ | | PSP Swiss Property AG | | | 10,320,943 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,320,943 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.6% |
| | 135,300 | | | @ | | Hirco PLC | | | 924,077 | |
| | 3,366,465 | | | | | Safestore Holdings Ltd. | | | 9,690,518 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,614,595 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $379,498,639) | | | 446,452,004 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 66.6% |
| | | | | | | |
| | | | | | | Australia: 10.2% |
| | 5,113,300 | | | | | CFS Retail Property Trust | | | 10,770,717 | |
| | 2,986,100 | | | | | Commonwealth Property Office Fund | | | 3,947,032 | |
| | 6,090,200 | | | | | DB Rreef Trust | | | 10,079,761 | |
| | 2,422,100 | | | | | GPT Group | | | 7,609,427 | |
| | 2,708,765 | | | | | Macquarie CountryWide Trust | | | 3,547,287 | |
| | 3,129,931 | | | | | Macquarie Goodman Group | | | 13,292,757 | |
| | 2,589,500 | | | | | Mirvac Group | | | 10,232,085 | |
| | 3,789,400 | | | | | Stockland | | | 25,810,177 | |
| | 2,642,250 | | | | | Valad Property Group | | | 2,356,044 | |
| | 4,600,154 | | | | | Westfield Group | | | 79,049,462 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 166,694,749 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 1.2% |
| | 64,000 | | | @,# | | Calloway Real Estate Investment Trust | | | 1,345,328 | |
| | 193,000 | | | | | Calloway Real Estate Investment Trust | | | 4,057,005 | |
| | 695,600 | | | | | RioCan Real Estate Investment Trust | | | 14,483,896 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,886,229 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 6.3% |
| | 28,680 | | | | | Gecina SA | | | 4,036,546 | |
| | 144,050 | | | | | Klepierre | | | 8,711,258 | |
| | 358,219 | | | | | Mercialys | | | 16,631,534 | |
| | 19,281 | | | | | Societe de la Tour Eiffel | | | 2,754,184 | |
| | 37,153 | | | | | Societe Immobiliere de Location pour l’Industrie et le Commerce | | | 5,294,764 | |
| | 255,386 | | | | | Unibail | | | 65,589,427 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 103,017,713 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.9% |
| | 5,786,100 | | | | | Link Real Estate Investment Trust | | | 13,852,262 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,852,262 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 3.6% |
| | 858 | | | | | Japan Logistics Fund, Inc. | | | 5,842,227 | |
| | 1,635 | | | | | Japan Real Estate Investment Corp. | | | 19,381,441 | |
| | 1,075 | | | | | Japan Retail Fund Investment Corp. | | | 6,366,245 | |
| | 726 | | | | | Kenedix Realty Investment Corp. | | | 4,296,944 | |
| | 486 | | | | | Nippon Accommodations Fund, Inc. | | | 2,340,251 | |
| | 1,383 | | | | | Nippon Building Fund, Inc. | | | 18,153,394 | |
| | 581 | | | | | Nomura Real Estate Residential Fund, Inc. | | | 2,513,178 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 58,893,680 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.1% |
| | 263,410 | | | | | Corio NV | | | 24,483,402 | |
| | 180,305 | | | | | Eurocommercial Properties NV | | | 10,337,925 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 34,821,327 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 1.6% |
| | 4,504,400 | | | @ | | Ascendas Real Estate Investment Trust | | | 8,598,908 | |
| | 5,480,500 | | | @ | | CapitaMall Trust | | | 14,104,743 | |
See Accompanying Notes to Financial Statements
159
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Singapore (continued) |
| | 3,465,600 | | | @ | | Macquarie MEAG Prime Real Estate Investment Trust | | $ | 3,168,753 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 25,872,404 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 6.7% |
| | 943,700 | | | | | British Land Co. PLC | | | 15,661,859 | |
| | 445,800 | | | | | Brixton PLC | | | 2,626,095 | |
| | 468,130 | | | | | Derwent Valley Holdings PLC | | | 12,390,202 | |
| | 557,596 | | | | | Great Portland Estates PLC | | | 5,047,487 | |
| | 851,728 | | | | | Hammerson PLC | | | 16,957,523 | |
| | 1,344,617 | | | | | Land Securities Group PLC | | | 40,888,604 | |
| | 220,359 | | | | | Liberty International PLC | | | 4,264,345 | |
| | 1,312,800 | | | | | Segro PLC | | | 11,954,167 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 109,790,282 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 34.0% |
| | 82,900 | | | | | Acadia Realty Trust | | | 2,125,556 | |
| | 212,800 | | | L | | AMB Property Corp. | | | 12,289,200 | |
| | 105,010 | | | L | | AvalonBay Communities, Inc. | | | 10,474,748 | |
| | 198,200 | | | L | | BioMed Realty Trust, Inc. | | | 5,153,200 | |
| | 404,600 | | | L | | Boston Properties, Inc. | | | 40,658,254 | |
| | 222,400 | | | L | | BRE Properties, Inc. | | | 10,664,080 | |
| | 172,300 | | | L | | Corporate Office Properties Trust SBI MD | | | 6,426,790 | |
| | 388,100 | | | L | | Douglas Emmett, Inc. | | | 9,221,256 | |
| | 153,600 | | | L | | Equity One, Inc. | | | 3,793,920 | |
| | 341,600 | | | L | | Equity Residential | | | 14,183,232 | |
| | 103,000 | | | L | | Essex Property Trust, Inc. | | | 12,257,000 | |
| | 183,900 | | | L | | Extra Space Storage, Inc. | | | 3,095,037 | |
| | 347,000 | | | L | | Federal Realty Investment Trust | | | 28,506,050 | |
| | 118,100 | | | L | | FelCor Lodging Trust, Inc. | | | 1,486,879 | |
| | 448,900 | | | L | | General Growth Properties, Inc. | | | 18,386,944 | |
| | 556,000 | | | L | | HCP, Inc. | | | 19,849,200 | |
| | 224,500 | | | L | | Health Care Real Estate Investment Trust, Inc. | | | 10,877,025 | |
| | 232,900 | | | L | | Highwoods Properties, Inc. | | | 8,160,816 | |
| | 147,600 | | | L | | Home Properties, Inc. | | | 7,759,332 | |
| | 1,040,510 | | | L | | Host Hotels & Resorts, Inc. | | | 17,896,772 | |
| | 144,400 | | | L | | Kilroy Realty Corp. | | | 7,555,008 | |
| | 372,100 | | | L | | Kimco Realty Corp. | | | 14,850,511 | |
| | 97,400 | | | | | LaSalle Hotel Properties | | | 3,123,618 | |
| | 224,275 | | | L | | Liberty Property Trust | | | 7,856,353 | |
| | 164,800 | | | L | | Macerich Co. | | | 12,051,824 | |
| | 336,000 | | | L | | Nationwide Health Properties, Inc. | | | 12,102,720 | |
| | 365,500 | | | | | Omega Healthcare Investors, Inc. | | | 6,396,250 | |
| | 83,200 | | | L | | Post Properties, Inc. | | | 3,053,440 | |
| | 384,500 | | | L | | Prologis | | | 24,073,545 | |
| | 294,754 | | | L | | Public Storage, Inc. | | | 26,734,188 | |
| | 328,000 | | | L | | Regency Centers Corp. | | | 23,474,960 | |
| | 677,650 | | | | | Simon Property Group, Inc. | | | 67,670,129 | |
| | 124,400 | | | L | | SL Green Realty Corp. | | | 11,544,320 | |
| | 290,400 | | | L | | Strategic Hotel Capital, Inc. | | | 4,184,664 | |
| | 271,000 | | | | | Tanger Factory Outlet Centers, Inc. | | | 10,932,140 | |
| | 233,500 | | | L | | Taubman Centers, Inc. | | | 13,232,445 | |
| | 366,700 | | | L | | UDR, Inc. | | | 9,270,176 | |
| | 709,100 | | | L | | Ventas, Inc. | | | 34,433,896 | |
| | 198,000 | | | L | | Vornado Realty Trust | | | 18,431,820 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 554,237,298 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $1,049,328,521) | | | 1,087,065,944 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 0.8% |
| | | | | | | |
| | | | | | | Australia: 0.3% |
| | 2,178,900 | | | ** | | ING Industrial Fund | | | 4,281,390 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,281,390 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.4% |
| | 464,350 | | | | | Prologis European Properties | | | 7,540,621 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,540,621 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.1% |
| | 1,266,400 | | | ** | | ING UK Real Estate Income Trust Ltd. | | | 1,781,018 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,781,018 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $13,918,601) | | | 13,603,029 | |
| | | | | | | | | | | |
| |
WARRANTS: 0.0% |
| | | | | | | |
| | | | | | | Hong Kong: 0.0% |
| | 158,416 | | | @ | | China Overseas Land & Investment Ltd. | | | 85,376 | |
| | | | | | | | | | | |
| | | | | | | Total Warrants
(Cost $-) | | | 85,376 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $1,442,745,761) | | | 1,547,206,353 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 21.2% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 3.6% |
| $ | 58,809,000 | | | L,Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 58,806,468 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $58,806,468) | | | 58,806,468 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 17.6% |
| | 287,051,807 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | | 287,051,807 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $287,051,807) | | | 287,051,807 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $345,858,275) | | | 345,858,275 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $1,788,604,036)* | | | 115.9 | % | | $ | 1,893,064,628 | |
| | | | | Other Assets and
Liabilities - Net | | | (15.9 | ) | | | (259,909,967 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 1,633,154,661 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
See Accompanying Notes to Financial Statements
160
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of April 30, 2008 (Unaudited) (continued)
| | | |
| @ | | Non-income producing security |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| ** | | Investment in affiliate |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $1,836,128,375. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 110,673,017 | |
| Gross Unrealized Depreciation | | | (53,736,764 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 56,936,253 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Apartments | | | 4.3 | % |
| Closed-End Funds | | | 0.8 | |
| Diversified | | | 20.4 | |
| Engineering & Construction | | | 0.5 | |
| Health Care | | | 5.1 | |
| Holding Companies — Diversified | | | 0.6 | |
| Hotels | | | 1.7 | |
| Office Property | | | 9.5 | |
| Real Estate | | | 25.6 | |
| Regional Malls | | | 6.8 | |
| Shopping Centers | | | 14.4 | |
| Storage | | | 1.8 | |
| Storage/Warehousing | | | 0.6 | |
| Warehouse/Industrial | | | 2.6 | |
| Short-Term Investments | | | 21.2 | |
| Other Assets and Liabilities — Net | | | (15.9 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
At April 30, 2008 the following forward foreign currency contracts were outstanding for the ING Global Real Estate Fund:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | |
| | | | | Settlement
| | Exchange
| | | | Unrealized
|
Currency | | Buy/Sell | | Date | | For | | Value | | Appreciation |
| | | | | | | USD | | | | |
| |
Japanese Yen
JPY 127,933,302 | | | Buy | | | | 05/07/08 | | | | 1,225,720 | | | | 1,230,861 | | | $ | 5,141 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 5,141 | |
| | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
161
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 90.2% |
| | | | | | | |
| | | | | | | Australia: 0.4% |
| | 126,600 | | | @ | | Moto Goldmines Ltd. | | $ | 457,575 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 457,575 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 2.9% |
| | 191,800 | | | L | | Centrais Eletricas Brasileiras SA ADR — Class B | | | 2,911,620 | |
| | 11,700 | | | L | | Cia de Saneamento Basico do Estado de Sao Paulo ADR | | | 592,371 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,503,991 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 7.4% |
| | 43,264 | | | L | | AbitibiBowater, Inc. | | | 427,016 | |
| | 138,400 | | | | | Barrick Gold Corp. | | | 5,345,008 | |
| | 182,700 | | | @,L | | Crystallex International Corp. | | | 166,257 | |
| | 457,800 | | | @ | | Gabriel Resources Ltd. | | | 904,599 | |
| | 85,100 | | | @,L | | Ivanhoe Mines Ltd. | | | 817,811 | |
| | 198,100 | | | @ | | Patheon, Inc. | | | 717,967 | |
| | 12,700 | | | L | | Petro-Canada | | | 636,524 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,015,182 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Cayman Islands: 1.3% |
| | 152,500 | | | @,L | | Apex Silver Mines Ltd. | | | 1,532,625 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,532,625 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.1% |
| | 70,500 | | | | | UPM-Kymmene OYJ | | | 1,352,041 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,352,041 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 4.5% |
| | 73,000 | | | | | Sanofi-Aventis ADR | | | 2,816,340 | |
| | 11,300 | | | | | Technip SA ADR | | | 1,044,322 | |
| | 24,200 | | | | | Thales SA | | | 1,576,215 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,436,877 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 1.0% |
| | 32,000 | | | | | ERG S.p.A. | | | 700,745 | |
| | 322,800 | | | | | Telecom Italia S.p.A. RNC | | | 525,482 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,226,227 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 17.4% |
| | 168,000 | | | @ | | Chiyoda Corp. | | | 1,266,619 | |
| | 500 | | | | | Fields Corp. | | | 957,182 | |
| | 5,800 | | | | | Hakuhodo DY Holdings, Inc. | | | 352,484 | |
| | 42,400 | | | | | JS Group Corp. | | | 738,609 | |
| | 5,900 | | | L | | Kao Corp. ADR | | | 1,586,355 | |
| | 55,000 | | | | | Kissei Pharmaceutical Co., Ltd. | | | 1,161,958 | |
| | 183,000 | | | | | Nippon Oil Corp. | | | 1,261,168 | |
| | 245,000 | | | | | Nippon Telegraph & Telephone Corp. ADR | | | 5,265,050 | |
| | 83,000 | | | | | Obayashi Corp. | | | 403,218 | |
| | 97,800 | | | | | Paramount Bed Co., Ltd. | | | 1,300,573 | |
| | 262,000 | | | | | Sekisui House Ltd. | | | 2,494,085 | |
| | 25,400 | | | | | Seven & I Holdings Co., Ltd. | | | 760,386 | |
| | 282,000 | | | | | Sumitomo Osaka Cement Co., Ltd. | | | 617,904 | |
| | 66,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 593,405 | |
| | 54,000 | | | | | Toppan Printing Co., Ltd. | | | 602,935 | |
| | 21,000 | | | | | Toppan Printing Co., Ltd. ADR | | | 1,161,420 | |
| | 33,100 | | | | | Toyo Seikan Kaisha Ltd. | | | 650,592 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 21,173,943 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 3.7% |
| | 57,000 | | | | | Royal Dutch Shell PLC ADR — Class B | | | 4,542,900 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,542,900 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 2.2% |
| | 4,134,000 | | | @,L | | Marine Harvest | | | 2,713,123 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,713,123 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Papua New Guinea: 1.9% |
| | 820,004 | | | @,L | | Lihir Gold Ltd. | | | 2,326,401 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,326,401 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 5.7% |
| | 142,000 | | | L | | Anglogold Ashanti Ltd. ADR | | | 4,845,040 | |
| | 153,900 | | | | | Gold Fields Ltd. | | | 2,057,990 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,903,030 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 5.3% |
| | 326,150 | | | L | | Korea Electric Power Corp. ADR | | | 5,358,648 | |
| | 35,200 | | | L | | KT Corp. ADR | | | 813,824 | |
| | 3,800 | | | @ | | Samsung SDI Co., Ltd. | | | 292,747 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,465,219 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 0.5% |
| | 24,200 | | | L | | Telefonaktiebolaget LM Ericsson ADR | | | 610,324 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 610,324 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 0.5% |
| | 16,800 | | | L | | UBS AG — New | | | 564,312 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 564,312 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 8.0% |
| | 82,000 | | | L | | AstraZeneca PLC ADR | | | 3,442,360 | |
| | 221,500 | | | | | Benfield Group Ltd. | | | 1,154,153 | |
| | 17,800 | | | | | BP PLC ADR | | | 1,295,662 | |
| | 35,139 | | | @,L | | Lighthouse Caledonia ASA | | | 33,143 | |
| | 76,800 | | | | | Mondi PLC | | | 608,656 | |
| | 143,900 | | | | | Stolt-Nielsen SA | | | 3,199,052 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,733,026 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 26.4% |
| | 164,100 | | | @ | | Allied Waste Industries, Inc. | | | 2,028,276 | |
| | 75,200 | | | @ | | Amgen, Inc. | | | 3,148,624 | |
| | 19,000 | | | | | Chevron Corp. | | | 1,826,850 | |
| | 20,600 | | | @ | | eBay, Inc. | | | 644,574 | |
| | 67,900 | | | | | Electronic Data Systems Corp. | | | 1,260,224 | |
| | 34,300 | | | L | | Idacorp, Inc. | | | 1,112,692 | |
| | 20,000 | | | | | Microsoft Corp. | | | 570,400 | |
| | 126,300 | | | L | | Newmont Mining Corp. | | | 5,583,723 | |
| | 26,650 | | | | | Peabody Energy Corp. | | | 1,629,115 | |
| | 46,200 | | | | | Puget Energy, Inc. | | | 1,257,102 | |
| | 18,900 | | | @,L | | Scholastic Corp. | | | 532,035 | |
| | 136,700 | | | @,L | | Smithfield Foods, Inc. | | | 3,920,556 | |
| | 394,600 | | | L | | Sprint Nextel Corp. | | | 3,152,854 | |
| | 30,600 | | | @,L | | Tech Data Corp. | | | 1,028,466 | |
| | 166,600 | | | | | Tyson Foods, Inc. | | | 2,965,480 | |
| | 9,400 | | | | | Union Pacific Corp. | | | 1,364,786 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 32,025,757 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $108,288,217) | | | 109,582,553 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.0% |
| | | | | | | |
| | | | | | | Switzerland: 0.0% |
| | 16,800 | | | | | UBS AG — Reg Rights | | | 17,349 | |
| | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $25,591) | | | 17,349 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $108,313,808) | | | 109,599,902 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
162
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
SHORT-TERM INVESTMENTS: 30.6% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 7.4% |
| $ | 9,030,000 | | | L,Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 9,029,611 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $9,029,611) | | | 9,029,611 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 23.2% |
| | 28,197,205 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | | 28,197,205 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $28,197,205) | | | 28,197,205 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $37,226,816) | | | 37,226,816 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $145,540,624)* | | | 120.8 | % | | $ | 146,826,718 | |
| | | | | Other Assets and
Liabilities - Net | | | (20.8 | ) | | | (25,254,221 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 121,572,497 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $146,351,739. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 10,109,680 | |
| Gross Unrealized Depreciation | | | (9,634,701 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 474,979 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.3 | % |
| Aerospace/Defense | | | 1.3 | |
| Banks | | | 0.5 | |
| Biotechnology | | | 2.6 | |
| Building Materials | | | 1.1 | |
| Coal | | | 1.3 | |
| Commercial Services | | | 1.5 | |
| Computers | | | 1.0 | |
| Cosmetics/Personal Care | | | 1.3 | |
| Distribution/Wholesale | | | 0.8 | |
| Diversified Financial Services | | | 0.5 | |
| Electric | | | 8.8 | |
| Electronics | | | 0.2 | |
| Engineering & Construction | | | 1.4 | |
| Environmental Control | | | 1.7 | |
| Food | | | 7.9 | |
| Forest Products & Paper | | | 2.0 | |
| Healthcare — Products | | | 1.1 | |
| Home Builders | | | 2.1 | |
| Insurance | | | 0.9 | |
| Internet | | | 0.5 | |
| Leisure Time | | | 0.8 | |
| Media | | | 0.4 | |
| Mining | | | 19.8 | |
| Oil & Gas | | | 8.4 | |
| Oil & Gas Services | | | 0.9 | |
| Packaging & Containers | | | 0.5 | |
| Pharmaceuticals | | | 6.7 | |
| Retail | | | 0.6 | |
| Software | | | 0.5 | |
| Telecommunications | | | 8.5 | |
| Transportation | | | 3.8 | |
| Water | | | 0.5 | |
| Short-Term Investments | | | 30.6 | |
| Other Assets and Liabilities — Net | | | (20.8 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
163
PORTFOLIO OF INVESTMENTS
ING Asia-Pacific Real Estate Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 55.4% |
| | | | | | | |
| | | | | | | Australia: 1.3% |
| | 5,600 | | | | | Lend Lease Corp., Ltd. | | $ | 65,534 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 65,534 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 28.6% |
| | 23,100 | | | | | Cheung Kong Holdings Ltd. | | | 360,808 | |
| | 11,000 | | | | | Hang Lung Group Ltd. | | | 59,198 | |
| | 32,000 | | | | | Hang Lung Properties Ltd. | | | 129,914 | |
| | 7,900 | | | | | Henderson Land Development Co., Ltd. | | | 60,433 | |
| | 22,300 | | | | | Hongkong Land Holdings Ltd. | | | 101,231 | |
| | 14,000 | | | | | Hysan Development Co., Ltd. | | | 40,612 | |
| | 14,000 | | | | | Kerry Properties Ltd. | | | 94,787 | |
| | 31,000 | | | | | Shui On Land Ltd. | | | 30,809 | |
| | 36,000 | | | | | Shun TAK Holdings Ltd. | | | 48,033 | |
| | 32,000 | | | | | Sino Land Co. | | | 80,695 | |
| | 20,400 | | | | | Sun Hung Kai Properties Ltd. | | | 356,521 | |
| | 13,000 | | | | | Wharf Holdings Ltd. | | | 65,743 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,428,784 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 0.3% |
| | 2,200 | | | @ | | Unitech Ltd. (Global Instrument, Issuer: Macquarie Group Ltd.) | | | 16,831 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,831 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 22.1% |
| | 17,000 | | | | | Mitsubishi Estate Co., Ltd. | | | 494,392 | |
| | 15,000 | | | | | Mitsui Fudosan Co., Ltd. | | | 379,049 | |
| | 40 | | | | | NTT Urban Development Corp. | | | 62,060 | |
| | 5,000 | | | | | Sumitomo Realty & Development Co., Ltd. | | | 125,330 | |
| | 2,000 | | | | | Tokyo Tatemono Co., Ltd. | | | 17,461 | |
| | 3,000 | | | | | Tokyu Land Corp. | | | 22,443 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,100,735 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 3.1% |
| | 22,000 | | | | | CapitaLand Ltd. | | | 110,880 | |
| | 2,000 | | | | | City Developments Ltd. | | | 17,897 | |
| | 16,000 | | | | | Wheelock Properties S Ltd. | | | 23,965 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 152,742 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock | | | | |
| | | | | | | (Cost $3,028,553) | | | 2,764,626 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 38.7% |
| | | | | | | |
| | | | | | | Australia: 22.0% |
| | 2,900 | | | | | Australand Property Group | | | 4,498 | |
| | 23,300 | | | | | Babcock & Brown Japan Property Trust | | | 25,636 | |
| | 31,800 | | | | | CFS Retail Property Trust | | | 66,984 | |
| | 11,700 | | | | | Charter Hall Group | | | 15,952 | |
| | 49,200 | | | | | Commonwealth Property Office Fund | | | 65,033 | |
| | 21,100 | | | | | DB Rreef Trust | | | 34,922 | |
| | 40,900 | | | | | GPT Group | | | 128,494 | |
| | 18,300 | | | | | Macquarie Goodman Group | | | 77,720 | |
| | 15,400 | | | | | Mirvac Group | | | 60,851 | |
| | 20,500 | | | | | Stockland | | | 139,629 | |
| | 11,700 | | | | | Valad Property Group | | | 10,433 | |
| | 27,100 | | | | | Westfield Group | | | 465,689 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,095,841 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.1% |
| | 43,000 | | | | | Link Real Estate Investment Trust | | | 102,945 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 102,945 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 8.2% |
| | 4 | | | | | Fukuoka Real Estate Investment Trust Corp. | | | 24,029 | |
| | 2 | | | | | Japan Excellent, Inc. | | | 12,211 | |
| | 4 | | | | | Japan Logistics Fund, Inc. | | | 27,236 | |
| | 10 | | | | | Japan Real Estate Investment Corp. | | | 118,541 | |
| | 3 | | | | | Kenedix Realty Investment Corp. | | | 17,756 | |
| | 11 | | | | | Nippon Building Fund, Inc. | | | 144,387 | |
| | 5 | | | | | Nomura Real Estate Office Fund, Inc. | | | 39,761 | |
| | 3 | | | | | Tokyu Real Estate Investment Trust, Inc. | | | 25,261 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 409,182 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 6.4% |
| | 31,000 | | | @ | | Ascendas Real Estate Investment Trust | | | 59,179 | |
| | 23,000 | | | @ | | Ascott Residence Trust | | | 22,606 | |
| | 22,000 | | | @ | | CapitaCommercial Trust | | | 36,431 | |
| | 37,000 | | | @ | | CapitaMall Trust | | | 95,224 | |
| | 43,000 | | | @ | | Fortune Real Estate Investment Trust | | | 27,546 | |
| | 87,900 | | | @ | | Macquarie MEAG Prime Real Estate Investment Trust | | | 80,371 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 321,357 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $2,057,792) | | | 1,929,325 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 0.8% |
| | | | | | | |
| | | | | | | Australia: 0.8% |
| | 21,800 | | | ** | | ING Industrial Fund | | | 42,836 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $51,688) | | | 42,836 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $5,138,033)* | | | 94.9 | % | | $ | 4,736,787 | |
| | | | | Other Assets and
Liabilities - Net | | | 5.1 | | | | 252,174 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 4,988,961 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ** | | Investment in affiliate |
| | | |
| * | | Cost for federal income tax purposes is $5,246,814. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 56,854 | |
| Gross Unrealized Depreciation | | | (566,881 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (510,027 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Closed-End Funds | | | 0.8 | % |
| Diversified | | | 12.7 | |
| Engineering & Construction | | | 0.3 | |
| Holding Companies — Diversified | | | 1.3 | |
| Hotels | | | 0.5 | |
| Office Property | | | 8.1 | |
| Real Estate | | | 53.8 | |
| Shopping Centers | | | 16.8 | |
| Warehouse/Industrial | | | 0.6 | |
| Other Assets and Liabilities — Net | | | 5.1 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
164
PORTFOLIO OF INVESTMENTS
ING Disciplined International SmallCap Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 91.1% |
| | | | | | | |
| | | | | | | Australia: 5.4% |
| | 123,258 | | | | | Ansell Ltd. | | $ | 1,333,966 | |
| | 71,700 | | | @ | | Anvil Mining Ltd. | | | 948,311 | |
| | 137,088 | | | @ | | Arrow Energy NL | | | 302,554 | |
| | 237,273 | | | | | Australian Infrastructure Fund | | | 624,566 | |
| | 343,059 | | | @ | | Australian Worldwide Exploration Ltd. | | | 1,181,332 | |
| | 147,947 | | | | | Beach Petroleum Ltd. | | | 168,486 | |
| | 561,918 | | | | | Challenger Financial Services Group Ltd. | | | 1,104,593 | |
| | 87,851 | | | | | Computershare Ltd. | | | 737,933 | |
| | 73,251 | | | | | CSR Ltd. | | | 218,023 | |
| | 39,238 | | | | | Felix Resources Ltd. | | | 541,996 | |
| | 12,760 | | | | | Flight Centre Ltd. | | | 261,828 | |
| | 104,088 | | | | | Goodman Fielder Ltd. | | | 175,169 | |
| | 37,734 | | | | | Healthscope Ltd. | | | 193,078 | |
| | 18,169 | | | | | Incitec Pivot Ltd. | | | 2,763,823 | |
| | 26,208 | | | | | Independence Group NL | | | 205,876 | |
| | 348,327 | | | | | Macmahon Holdings Ltd. | | | 532,869 | |
| | 122,479 | | | | | Macquarie Media Group Ltd. | | | 424,791 | |
| | 204,407 | | | | | Metcash Ltd. | | | 811,518 | |
| | 194,505 | | | | | Minara Resources Ltd. | | | 1,065,644 | |
| | 55,402 | | | | | Mincor Resources NL | | | 183,999 | |
| | 30,428 | | | | | Monadelphous Group Ltd. | | | 385,345 | |
| | 67,247 | | | I,X | | Octaviar Ltd. | | | 62,813 | |
| | 306,096 | | | | | Oxiana Ltd. | | | 950,257 | |
| | 348,347 | | | | | Pacific Brands Ltd. | | | 645,775 | |
| | 267,174 | | | | | PMP Ltd. | | | 338,321 | |
| | 87,158 | | | | | Seven Network Ltd. | | | 762,233 | |
| | 18,774 | | | | | Sims Group Ltd. | | | 585,621 | |
| | 642,407 | | | # | | Spark Infrastructure Group | | | 1,075,685 | |
| | 93,984 | | | | | Transfield Services Ltd. | | | 1,133,693 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,720,098 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 0.5% |
| | 64,255 | | | @ | | Austrian Airlines | | | 372,098 | |
| | 14,678 | | | @ | | Ca Immo International AA | | | 230,527 | |
| | 38,594 | | | @ | | CA Immobilien Anlagen AG | | | 897,387 | |
| | 6,171 | | | | | Zumtobel AG | | | 187,690 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,687,702 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 0.7% |
| | 36,621 | | | | | AGFA-Gevaert NV | | | 267,360 | |
| | 12,672 | | | | | EVS Broadcast Equipment SA | | | 1,288,993 | |
| | 18,069 | | | | | Omega Pharma SA | | | 788,950 | |
| | 24,149 | | | @ | | RHJ International | | | 315,029 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,660,332 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.4% |
| | 46,927 | | | | | Catlin Group Ltd. | | | 362,797 | |
| | 88,600 | | | @ | | Global Sources Ltd. | | | 1,230,654 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,593,451 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 7.2% |
| | 9,500 | | | | | Aecon Group, Inc. | | | 149,136 | |
| | 50,500 | | | | | Aeroplan Income Fund | | | 764,696 | |
| | 34,500 | | | @ | | Altius Minerals Corp. | | | 523,444 | |
| | 13,600 | | | | | Astral Media Inc. | | | 466,027 | |
| | 9,100 | | | | | Atco Ltd. | | | 428,480 | |
| | 63,000 | | | @ | | CanWest Global Communications Corp. | | | 262,109 | |
| | 94,000 | | | @ | | Celestica, Inc. | | | 882,971 | |
| | 28,100 | | | | | CML Healthcare Income Fund | | | 418,807 | |
| | 100,500 | | | | | Daylight Resources Trust | | | 976,959 | |
| | 38,500 | | | | | Emera, Inc. | | | 820,003 | |
| | 6,300 | | | @ | | FNX Mining Co., Inc. | | | 156,390 | |
| | 32,000 | | | | | Forzani Group Ltd. | | | 563,360 | |
| | 32,800 | | | | | Gerdau AmeriSteel Corp. | | | 511,330 | |
| | 1 | | | | | Harvest Energy Trust | | | 12 | |
| | 13,100 | | | @ | | HudBay Minerals, Inc. | | | 247,145 | |
| | 24,500 | | | | | Iamgold Corp. | | | 147,667 | |
| | 34,400 | | | | | Industrial Alliance Insurance | | | 1,352,978 | |
| | 7,000 | | | | | Inmet Mining Corp. | | | 574,471 | |
| | 49,900 | | | | | Jazz Air Income Fund | | | 385,485 | |
| | 14,900 | | | | | Labrador Iron Ore Royalty Income Fund | | | 781,174 | |
| | 27,300 | | | | | Laurentian Bank of Canada | | | 1,144,209 | |
| | 45,200 | | | | | Methanex Corp. | | | 1,054,712 | |
| | 33,400 | | | | | Metro Inc. | | | 809,215 | |
| | 13,000 | | | | | Northbridge Financial Corp. | | | 448,565 | |
| | 113,300 | | | @ | | Northgate Minerals Corp. | | | 321,754 | |
| | 14,700 | | | @ | | Oilexco Incorporated | | | 224,346 | |
| | 29,100 | | | @ | | Petrobank Energy & Resources Ltd. | | | 1,404,290 | |
| | 23,200 | | | @ | | Petrolifera Petroleum Ltd. | | | 217,694 | |
| | 67,500 | | | | | Progress Energy Trust | | | 941,689 | |
| | 65,600 | | | @ | | QuADRa Mining Ltd. | | | 1,481,227 | |
| | 9,700 | | | | | Rothmans Inc. | | | 239,538 | |
| | 36,200 | | | | | Shawcor Ltd. | | | 1,078,344 | |
| | 87,400 | | | | | Sherritt International Corp. | | | 1,219,313 | |
| | 71,700 | | | @ | | Silver Wheaton Corp. | | | 950,447 | |
| | 50,200 | | | | | Silvercorp Metals, Inc. | | | 366,369 | |
| | 14,200 | | | @ | | Sino-Forest Corp. | | | 215,023 | |
| | 33,500 | | | @ | | Stantec, Inc. | | | 985,607 | |
| | 42,200 | | | | | Teranet Income Fund | | | 398,074 | |
| | 20,200 | | | | | Transcontinental, Inc. | | | 378,888 | |
| | 123,400 | | | @ | | UTS Energy Corp. | | | 662,888 | |
| | 34,600 | | | | | Vermilion Energy Trust | | | 1,362,905 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,317,741 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.1% |
| | 56,000 | | | | | Hengan International Group Co., Ltd. | | | 199,882 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 199,882 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 0.4% |
| | 16,175 | | | | | East Asiatic Co., Ltd. A/S | | | 1,429,641 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,429,641 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 0.1% |
| | 16,997 | | | | | OKO Bank | | | 337,421 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 337,421 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 9.4% |
| | 29,911 | | | | | Accor SA | | | 2,464,480 | |
| | 30,058 | | | | | Air France-KLM | | | 929,171 | |
| | 15,794 | | | @ | | Arkema | | | 907,506 | |
| | 4,920 | | | | | Bacou Dalloz | | | 622,232 | |
| | 2,501 | | | | | Bollore Investissement | | | 552,712 | |
| | 2,224 | | | | | Bonduelle S.C.A. | | | 275,656 | |
| | 9,192 | | | | | Capgemini SA | | | 552,085 | |
| | 2,839 | | | | | Cie Generale D’Optique Essilor International SA | | | 176,118 | |
| | 5,529 | | | | | Ciments Francais SA | | | 1,066,372 | |
| | 12,656 | | | | | CNP Assurances | | | 1,501,077 | |
| | 6,305 | | | @ | | Compagnie Generale de Geophysique SA | | | 1,583,612 | |
| | 1,534 | | | | | Eramet SLN | | | 1,368,029 | |
| | 10,325 | | | | | Etablissements Maurel et Prom | | | 238,006 | |
| | 10,767 | | | | | Eurazeo | | | 1,386,437 | |
| | 45,465 | | | @ | | Eutelsat Communications | | | 1,336,153 | |
| | 590 | | | | | Generale de Sante | | | 13,404 | |
| | 24,338 | | | | | IMS-International Metal Service | | | 976,313 | |
| | 11,581 | | | | | Ipsen | | | 707,722 | |
| | 4,859 | | | | | Kaufman & Broad SA | | | 224,651 | |
| | 21,793 | | | | | Lagardere SCA | | | 1,553,716 | |
| | 1,303 | | | | | Laurent-Perrier Group | | | 188,638 | |
| | 41,632 | | | | | Legrand SA | | | 1,244,284 | |
| | 25,563 | | | | | Neuf Cegetel | | | 1,429,935 | |
| | 3,411 | | | | | Pierre & Vacances | | | 374,385 | |
| | 48,842 | | | | | Safran SA | | | 1,021,014 | |
| | 61,543 | | | | | Scor SA | | | 1,477,300 | |
| | 10,081 | | | | | Sequana Capital | | | 257,573 | |
| | 16,048 | | | | | Societe BIC SA | | | 821,419 | |
| | 20,894 | | | | | Sodexho Alliance SA | | | 1,393,360 | |
| | 24,104 | | | | | Technip SA | | | 2,221,107 | |
| | 26,376 | | | | | Thales SA | | | 1,717,944 | |
See Accompanying Notes to Financial Statements
165
PORTFOLIO OF INVESTMENTS
ING Disciplined International SmallCap Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | France (continued) |
| | 157,690 | | | @ | | Thomson | | $ | 997,058 | |
| | 2,530 | | | @ | | UbiSoft Entertainment | | | 252,689 | |
| | 4,614 | | | | | Vallourec | | | 1,250,916 | |
| | 5,976 | | | | | Vilmorin & Cie | | | 1,114,542 | |
| | 3,014 | | | | | Virbac SA | | | 284,144 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 34,481,760 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 8.9% |
| | 52,837 | | | | | Aareal Bank AG | | | 1,959,593 | |
| | 9,593 | | | | | Adidas AG | | | 608,931 | |
| | 70,942 | | | @ | | Aixtron AG | | | 1,097,275 | |
| | 1,963 | | | | | AMB Generali Holding AG | | | 360,401 | |
| | 22,143 | | | | | Celesio AG | | | 962,864 | |
| | 22,562 | | | | | Curanum AG | | | 161,612 | |
| | 16,240 | | | | | Deutsche Beteiligungs AG | | | 402,358 | |
| | 28,173 | | | | | Deutsche Euroshop AG | | | 1,196,046 | |
| | 84,697 | | | | | Deutsche Lufthansa AG | | | 2,234,799 | |
| | 30,682 | | | @ | | Drillisch AG | | | 189,244 | |
| | 65,475 | | | | | EpCos. AG | | | 999,029 | |
| | 46,118 | | | | | Freenet AG | | | 788,407 | |
| | 38,020 | | | | | Fresenius Medical Care AG & Co. KGaA | | | 2,011,888 | |
| | 73,679 | | | | | Gildemeister AG | | | 2,163,421 | |
| | 17,714 | | | | | Hannover Rueckversicheru — Reg | | | 963,478 | |
| | 11,134 | | | | | HeidelbergCement AG | | | 1,861,302 | |
| | 1,783 | | | | | Hochtief AG | | | 181,545 | |
| | 156,291 | | | @ | | IKB Deutsche Industriebank AG | | | 1,071,854 | |
| | 122,027 | | | @ | | Infineon Technologies AG | | | 1,122,484 | |
| | 50,669 | | | @ | | IWKA AG | | | 1,852,475 | |
| | 34,382 | | | @ | | Jenoptik AG | | | 304,802 | |
| | 1,168 | | | | | K+S AG | | | 477,551 | |
| | 33,231 | | | | | Kontron AG | | | 536,283 | |
| | 2,515 | | | | | KWS Saat AG | | | 545,967 | |
| | 24,380 | | | | | Leoni AG | | | 1,309,177 | |
| | 10,040 | | | | | MAN AG | | | 1,395,829 | |
| | 41,810 | | | @ | | Medion AG | | | 831,357 | |
| | 6,059 | | | | | Salzgitter AG | | | 1,232,455 | |
| | 58,615 | | | | | Suedzucker AG | | | 1,326,714 | |
| | 9,507 | | | | | United Internet AG | | | 202,462 | |
| | 13,309 | | | | | Vossloh AG | | | 1,920,714 | |
| | 1,297 | | | | | Wacker Chemie AG | | | 314,570 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 32,586,887 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.5% |
| | 64,540 | | | | | Hellenic Technodomiki Tev SA | | | 800,699 | |
| | 17,207 | | | | | Neochimiki LV Lavrentiadis SA | | | 494,932 | |
| | 17,300 | | | | | Tsakos Energy Navigation Ltd. | | | 562,250 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,857,881 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.3% |
| | 295,700 | | | @ | | CDC Corp. — Class A | | | 1,020,165 | |
| | 686,000 | | | | | China Gas Holdings Ltd. | | | 212,673 | |
| | 410,000 | | | | | Great Eagle Holding Co. | | | 1,189,464 | |
| | 408,800 | | | | | Hkr International Ltd. | | | 277,686 | |
| | 219,500 | | | | | Hongkong & Shanghai Hotels | | | 375,863 | |
| | 413,000 | | | | | Hopewell Holdings | | | 1,797,279 | |
| | 658,000 | | | | | Hysan Development Co., Ltd. | | | 1,908,779 | |
| | 552,000 | | | | | K Wah International Holdings Ltd. | | | 241,855 | |
| | 15,100 | | | @ | | Khd Humboldt Wedag International | | | 437,749 | |
| | 100,800 | | | | | Mandarin Oriental International Ltd. | | | 224,298 | |
| | 1,137,000 | | | | | Minmetals Resources Ltd. | | | 440,665 | |
| | 1,232,000 | | | | | Sinolink Worldwide Holdings | | | 216,174 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,342,650 | |
| | | | | | | | | | | | | | | �� |
| | | | | | | |
| | | | | | | Indonesia: 0.0% |
| | 222,316 | | | @ | | First Resources Ltd. | | | 165,583 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 165,583 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.9% |
| | 57,177 | | | | | Iaws Group PLC | | | 1,440,883 | |
| | 45,304 | | | | | Kerry Group PLC | | | 1,401,673 | |
| | 70,278 | | | | | United Drug PLC | | | 417,973 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,260,529 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 5.0% |
| | 48,693 | | | | | ACEA S.p.A. | | | 937,617 | |
| | 242,638 | | | | | AEM S.p.A. | | | 891,750 | |
| | 87,358 | | | | | Banca Popolare di Milano Scrl | | | 1,071,505 | |
| | 46,746 | | | | | Benetton Group S.p.A. | | | 609,956 | |
| | 40,414 | | | | | Biesse S.p.A. | | | 859,347 | |
| | 47,285 | | | | | Buzzi Unicem S.p.A. | | | 1,202,386 | |
| | 18,539 | | | | | Buzzi Unicem S.p.A. RNC | | | 319,782 | |
| | 111,019 | | | @ | | DeA Capital S.p.A. | | | 311,538 | |
| | 468,722 | | | @ | | Ducati Motor Holding S.p.A. | | | 1,231,775 | |
| | 309,570 | | | | | IMMSI S.p.A. | | | 423,732 | |
| | 220,341 | | | @ | | Impregilo S.p.A. | | | 1,326,181 | |
| | 115,790 | | | | | Indesit Co. S.p.A. | | | 1,389,959 | |
| | 22,997 | | | | | Italcementi S.p.A. RNC | | | 365,659 | |
| | 5,728 | | | | | Italmobiliare S.p.A. | | | 409,946 | |
| | 7,916 | | | | | Italmobiliare S.p.A. RNC | | | 750,213 | |
| | 19,122 | | | | | Permasteelisa S.p.A. | | | 406,253 | |
| | 335,654 | | | | | Piaggio & C S.p.A. | | | 750,690 | |
| | 173,941 | | | | | Recordati S.p.A. | | | 1,267,972 | |
| | 173,449 | | | | | Safilo Group S.p.A. | | | 478,454 | |
| | 190,661 | | | @ | | Sorin S.p.A. | | | 320,531 | |
| | 354,624 | | | | | Terna S.p.A | | | 1,564,164 | |
| | 461,877 | | | | | Unipol S.p.A. | | | 1,505,096 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,394,506 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 14.7% |
| | 101,000 | | | @ | | Aida Engineering Ltd. | | | 646,101 | |
| | 3,600 | | | | | Alfresa Holdings Corp. | | | 253,909 | |
| | 30,200 | | | | | Aoyama Trading Co., Ltd. | | | 685,525 | |
| | 20,400 | | | | | Arisawa Manufacturing Co., Ltd. | | | 143,843 | |
| | 36,800 | | | | | Autobacs Seven Co., Ltd. | | | 961,615 | |
| | 7,700 | | | | | Bank of Iwate Ltd. | | | 495,770 | |
| | 125,000 | | | | | Bank of Nagoya Ltd. | | | 858,092 | |
| | 9,000 | | | | | Bank of Okinawa Ltd. | | | 344,783 | |
| | 61,100 | | | | | Chuo Denki Kogyo Co., Ltd. | | | 935,987 | |
| | 99,000 | | | | | COMSYS Holdings Corp. | | | 895,485 | |
| | 61,200 | | | | | Culture Convenience Club Co., Ltd. | | | 253,523 | |
| | 59,000 | | | | | Daimei Telecom Engineering Corp. | | | 483,963 | |
| | 43 | | | | | Dena Co., Ltd. | | | 305,587 | |
| | 51,000 | | | | | Denki Kogyo Co., Ltd. | | | 310,394 | |
| | 73,000 | | | | | Eighteenth Bank Ltd. | | | 265,858 | |
| | 75,874 | | | @ | | Eneserve Corp. | | | 298,432 | |
| | 19,900 | | | | | Enplas Corp. | | | 209,458 | |
| | 34 | | | | | EPS Co., Ltd. | | | 162,671 | |
| | 25,000 | | | | | Ezaki Glico Co., Ltd. | | | 275,968 | |
| | 20,600 | | | | | Fuji Machine Manufacturing Co., Ltd. | | | 410,156 | |
| | 142,000 | | | | | Fukuyama Transporting Co., Ltd. | | | 479,180 | |
| | 57,200 | | | | | Glory Ltd. | | | 1,288,368 | |
| | 56,000 | | | | | H2O Retailing Corp. | | | 406,059 | |
| | 58,000 | | | @ | | Higashi-Nippon Bank Ltd. | | | 235,663 | |
| | 110,000 | | | | | Higo Bank Ltd. | | | 692,830 | |
| | 37,000 | | | | | Hitachi Capital Corp. | | | 545,764 | |
| | 71,000 | | | | | Hitachi Kokusai Electric, Inc. | | | 674,131 | |
| | 40,000 | | | | | Hitachi Software Engineering Co., Ltd. | | | 984,932 | |
| | 125,000 | | | | | Hokkoku Bank Ltd. | | | 537,866 | |
| | 65,300 | | | | | House Foods Corp. | | | 1,016,744 | |
| | 100,000 | | | | | Hyakugo Bank Ltd. | | | 657,651 | |
| | 55,800 | | | @ | | Ines Corp. | | | 286,940 | |
| | 44,100 | | | | | Itochu Enex Co., Ltd. | | | 263,293 | |
| | 150,000 | | | @ | | Itoham Foods, Inc. | | | 847,029 | |
| | 134,000 | | | @ | | Jaccs Co., Ltd. | | | 477,580 | |
| | 46,300 | | | | | Japan Asia Investment Co., Ltd. | | | 228,799 | |
| | 19,800 | | | | | Japan Digital Laboratory Co. | | | 268,183 | |
| | 132,000 | | | | | Japan Radio Co., Ltd. | | | 326,544 | |
| | 96,000 | | | | | Jeol Ltd. | | | 369,871 | |
| | 133,000 | | | | | Juroku Bank Ltd. | | | 783,202 | |
See Accompanying Notes to Financial Statements
166
PORTFOLIO OF INVESTMENTS
ING Disciplined International SmallCap Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Japan (continued) |
| | 81,000 | | | | | Kagoshima Bank Ltd. | | $ | 650,648 | |
| | 25,000 | | | | | Kaken Pharmaceutical Co., Ltd. | | | 183,096 | |
| | 74,000 | | | | | Keiyo Bank Ltd. | | | 523,206 | |
| | 39,000 | | | | | Keiyo Co., Ltd. | | | 213,629 | |
| | 49,900 | | | | | Kimoto Co., Ltd. | | | 646,686 | |
| | 62,000 | | | | | Koa Corp. | | | 546,607 | |
| | 19,000 | | | | | Macnica, Inc. | | | 239,041 | |
| | 106,000 | | | @ | | Maeda Road Construction Co., Ltd. | | | 829,253 | |
| | 65,700 | | | @ | | Maruetsu, Inc. | | | 533,320 | |
| | 63,000 | | | | | Mie Bank Ltd. | | | 321,108 | |
| | 253,000 | | | @ | | Mitsui Matsushima Co., Ltd. | | | 647,564 | |
| | 99,000 | | | | | Mitsui Sugar Co., Ltd. | | | 329,262 | |
| | 53,000 | | | | | Nanto Bank Ltd. | | | 274,164 | |
| | 61,500 | | | | | NEC Networks & System Integration Corp. | | | 862,137 | |
| | 184,000 | | | | | Nichirei Corp. | | | 868,608 | |
| | 28,500 | | | | | Nifco, Inc. | | | 615,160 | |
| | 34,900 | | | | | Nihon Eslead Corp. | | | 416,825 | |
| | 77,000 | | | | | Nippon Chemical Industrial Co., Ltd. | | | 197,157 | |
| | 29,200 | | | | | Nippon Pillar Packing Co., Ltd. | | | 161,333 | |
| | 22,000 | | | | | Nippon Seiki Co., Ltd. | | | 323,360 | |
| | 140,000 | | | @ | | Nippon Sharyo Ltd. | | | 306,976 | |
| | 283,000 | | | | | Nippon Sheet Glass Co., Ltd. | | | 1,303,759 | |
| | 55,600 | | | | | Nippon Shinyaku Co., Ltd. | | | 654,866 | |
| | 204,000 | | | | | Nippon Synthetic Chemical Industry Co., Ltd. | | | 1,216,733 | |
| | 110,600 | | | @ | | NIS Group Co., Ltd. | | | 223,246 | |
| | 139,000 | | | | | Nissan Shatai Co., Ltd. | | | 1,034,972 | |
| | 89,300 | | | | | Nisshinbo Industries, Inc. | | | 983,370 | |
| | 4,350 | | | | | Nitori Co., Ltd. | | | 228,985 | |
| | 86,000 | | | @ | | Nitto Boseki Co., Ltd. | | | 179,215 | |
| | 21,900 | | | | | Oiles Corp. | | | 409,132 | |
| | 56,000 | | | | | Oita Bank Ltd. | | | 395,691 | |
| | 66,600 | | | | | Okabe Co., Ltd. | | | 257,995 | |
| | 50,000 | | | | | Pacific Industrial Co., Ltd. | | | 196,184 | |
| | 18,200 | | | | | Ryosan Co., Ltd. | | | 406,787 | |
| | 87,000 | | | | | Sanden Corp. | | | 359,452 | |
| | 99,000 | | | | | San-In Godo Bank Ltd. | | | 876,783 | |
| | 33,000 | | | | | Sanken Electric Co., Ltd. | | | 183,482 | |
| | 88,000 | | | @ | | Seika Corp. | | | 191,430 | |
| | 30,000 | | | | | Shima Seiki Manufacturing Ltd. | | | 1,182,023 | |
| | 44,300 | | | | | Shin-Etsu Polymer Co., Ltd. | | | 265,264 | |
| | 38,700 | | | | | Shizuoka Gas Co., Ltd. | | | 232,095 | |
| | 14,900 | | | @ | | SHO-BOND Holdings Co., Ltd. | | | 171,661 | |
| | 23,300 | | | | | Sugi Pharmacy Co., Ltd. | | | 616,502 | |
| | 174,000 | | | | | Sumitomo Bakelite Co. Ltd. | | | 970,492 | |
| | 40,000 | | | @ | | Taihei Dengyo Kaisha Ltd. | | | 302,437 | |
| | 78,000 | | | | | Takasago International Corp. | | | 549,768 | |
| | 97,000 | | | | | Tamura Corp. | | | 309,718 | |
| | 60,500 | | | | | Tecmo Ltd. | | | 647,163 | |
| | 61,000 | | | | | Tochigi Bank Ltd. | | | 403,964 | |
| | 35,000 | | | | | Toho Gas Co., Ltd. | | | 170,236 | |
| | 48,500 | | | | | Toho Pharmaceutical Co., Ltd. | | | 1,002,370 | |
| | 9,300 | | | | | Tokyo Seimitsu Co., Ltd. | | | 186,155 | |
| | 73,000 | | | | | Tokyo Style Co., Ltd. | | | 735,419 | |
| | 145,000 | | | | | Toshiba Plant Systems & Services Corp. | | | 1,187,930 | |
| | 140,900 | | | | | Toshiba Tec Corp. | | | 988,642 | |
| | 31,900 | | | @ | | Towa Corp. | | | 259,756 | |
| | 63,000 | | | | | Toyo Kohan Co., Ltd. | | | 312,383 | |
| | 39,800 | | | | | Urban Corp. | | | 219,543 | |
| | 34,420 | | | | | Usen Corp. | | | 150,445 | |
| | 125,000 | | | | | Wacoal Holdings Corp. | | | 1,796,965 | |
| | 37,500 | | | | | Yamanashi Chuo Bank Ltd. | | | 247,634 | |
| | 31,500 | | | | | Yamato Kogyo Co., Ltd. | | | 1,493,534 | |
| | 7,700 | | | | | Zenrin Co., Ltd. | | | 170,574 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 53,931,644 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.4% |
| | 30,700 | | | | | Chicago Bridge & Iron Co. NV | | | 1,223,088 | |
| | 9,400 | | | | | CNH Global NV | | | 405,516 | |
| | 103,804 | | | @ | | Crucell NV | | | 1,931,892 | |
| | 29,159 | | | | | Koninklijke BAM Groep NV | | | 693,607 | |
| | 16,367 | | | | | Koninklijke DSM NV | | | 878,465 | |
| | 3,080 | | | | | Nutreco Holding NV | | | 224,923 | |
| | 58,720 | | | | | OCE NV | | | 880,964 | |
| | 46,757 | | | | | OPG Groep NV | | | 1,252,569 | |
| | 11,371 | | | | | SBM Offshore NV | | | 433,414 | |
| | 3,946 | | | @ | | TomTom | | | 136,337 | |
| | 9,339 | | | | | Unit 4 Agresso NV | | | 263,014 | |
| | 12,750 | | | | | Wolters Kluwer NV | | | 340,293 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,664,082 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.8% |
| | 44,000 | | | | | Norwegian Property ASA | | | 382,255 | |
| | 32,800 | | | @ | | ODIM ASA | | | 574,482 | |
| | 11,400 | | | | | Tandberg ASA | | | 192,708 | |
| | 75,400 | | | @ | | TGS Nopec Geophysical Co. ASA | | | 1,208,684 | |
| | 55,758 | | | | | Veidekke ASA | | | 498,837 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,856,966 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Papua New Guinea: 0.2% |
| | 128,882 | | | @ | | Lihir Gold Ltd. | | | 365,646 | |
| | 58,518 | | | | | Oil Search Ltd. | | | 262,047 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 627,693 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 0.5% |
| | 332,792 | | | | | Portucel Empresa Produtora de Pasta e Papel SA | | | 1,255,499 | |
| | 43,006 | | | | | Semapa-Sociedade de Investimento e Gestao | | | 601,829 | |
| | 93,936 | | | | | Sonae SGPS SA | | | 166,962 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,024,290 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.5% |
| | 51,000 | | | | | Haw Par Corp., Ltd. | | | 282,436 | |
| | 107,000 | | | | | Hong Leong Asia Ltd. | | | 210,350 | |
| | 112,000 | | | | | Kim Eng Holdings Ltd. | | | 182,211 | |
| | 36,000 | | | | | Singapore Petroleum Co., Ltd. | | | 192,205 | |
| | 105,652 | | | | | Straits Asia Resources Ltd. | | | 257,112 | |
| | 39,800 | | | @ | | Verigy Ltd. | | | 850,526 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,974,840 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 3.6% |
| | 130,252 | | | | | Asiana Airlines | | | 814,076 | |
| | 5,440 | | | | | Binggrae Co., Ltd. | | | 202,552 | |
| | 15,498 | | | | | BNG Steel Co., Ltd. | | | 181,735 | |
| | 5,332 | | | | | Cheil Industries, Inc. | | | 290,601 | |
| | 4,090 | | | @ | | Daewoong Pharmaceutical Co., Ltd. | | | 418,146 | |
| | 13,680 | | | @ | | Daishin Securities Co., Ltd. | | | 302,065 | |
| | 974 | | | | | DC Chemical Co., Ltd. | | | 392,086 | |
| | 2,040 | | | | | Dong-A Pharmaceutical Co., Ltd. | | | 232,574 | |
| | 4,260 | | | @ | | Dongbu Insurance Co., Ltd. | | | 159,637 | |
| | 16,120 | | | | | Dongkuk Steel Mill Co., Ltd. | | | 751,612 | |
| | 1,211 | | | @ | | Doosan Corp. | | | 207,467 | |
| | 41,588 | | | @ | | Hanarotelecom, Inc. | | | 340,842 | |
| | 22,450 | | | @ | | Hyundai Marine & Fire Insurance Co., Ltd. | | | 459,474 | |
| | 2,318 | | | | | Korea Iron & Steel Co., Ltd. | | | 178,882 | |
| | 194,891 | | | | | Korea Technology Investment Corp. | | | 331,224 | |
| | 1,654 | | | | | Korea Zinc Co., Ltd. | | | 199,047 | |
| | 6,260 | | | | | Kumho Electric, Inc. | | | 195,439 | |
| | 31,232 | | | | | Kumho Industrial Co., Ltd. | | | 1,040,267 | |
| | 6,672 | | | | | LG Fashion Corp. | | | 193,457 | |
| | 10,077 | | | @ | | LG Life Sciences Ltd. | | | 585,628 | |
| | 772 | | | | | Lotte Chilsung Beverage Co., Ltd. | | | 883,036 | |
| | 27,620 | | | @ | | Lotte Midopa Co., Ltd. | | | 305,642 | |
| | 1,200 | | | | | Lotte Samkang Co., Ltd. | | | 251,758 | |
| | 71,220 | | | | | Meritz Fire & Marine Insurance Co., Ltd. | | | 617,613 | |
| | 96,500 | | | @ | | ON*Media Corp. | | | 424,768 | |
| | 24,150 | | | | | Poongsan Corp. | | | 431,584 | |
| | 1,071 | | | | | Samchully Co., Ltd. | | | 204,862 | |
| | 36,880 | | | | | SKC Co., Ltd. | | | 755,674 | |
See Accompanying Notes to Financial Statements
167
PORTFOLIO OF INVESTMENTS
ING Disciplined International SmallCap Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | South Korea (continued) |
| | 66,860 | | | @ | | Ssamgyong Motor Co. | | $ | 348,674 | |
| | 596,000 | | | | | STX Pan Ocean Co., Ltd. | | | 1,478,321 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,178,743 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 3.9% |
| | 74,853 | | | | | Acerinox SA | | | 2,017,985 | |
| | 32,745 | | | | | Banco De Sabadell SA | | | 325,779 | |
| | 313,370 | | | | | Corp. Mapfre SA | | | 1,589,555 | |
| | 50,848 | | | @ | | Corporacion Dermoestetica | | | 406,655 | |
| | 14,097 | | | | | Corporacion Financiera Alba SA | | | 981,484 | |
| | 29,245 | | | | | Duro Felguera SA | | | 317,027 | |
| | 7,039 | | | | | Gamesa Corp. Tecnologica SA | | | 339,885 | |
| | 285,835 | | | | | Iberia Lineas Aereas de Espana | | | 1,122,491 | |
| | 69,054 | | | @ | | Nh Hoteles SA | | | 1,130,343 | |
| | 32,496 | | | | | Obrascon Huarte Lain SA | | | 1,310,379 | |
| | 107,494 | | | | | Promotora de Informaciones SA (PRISA) | | | 1,880,561 | |
| | 32,484 | | | | | Union Fenosa SA | | | 2,169,376 | |
| | 29,166 | | | | | Viscofan SA | | | 699,616 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,291,136 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.6% |
| | 11,000 | | | | | Getinge AB | | | 279,180 | |
| | 15,000 | | | | | Hexagon AB | | | 270,481 | |
| | 23,400 | | | | | Holmen AB | | | 745,184 | |
| | 67,300 | | | | | Kinnevik Investment AB | | | 1,431,106 | |
| | 59,500 | | | | | Kungsleden AB | | | 591,642 | |
| | 7,725 | | | | | Lundbergforetagen AB — B Shares | | | 458,425 | |
| | 18,600 | | | @ | | Lundin Petroleum AB | | | 258,478 | |
| | 10,700 | | | | | ORC Software AB | | | 201,604 | |
| | 88,600 | | | | | Peab AB | | | 760,112 | |
| | 33,400 | | | @ | | Peab AB | | | 331,909 | |
| | 98,207 | | | | | RNB Retail and Brands AB | | | 427,745 | |
| | 8,700 | | | | | Wallenstam Byggnads AB | | | 168,845 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,924,711 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 6.6% |
| | 5,926 | | | @ | | Actelion Ltd. — Reg | | | 297,512 | |
| | 33,227 | | | | | Adecco SA | | | 1,977,780 | |
| | 15,016 | | | @ | | Ascom Holding AG — Reg | | | 158,689 | |
| | 16,980 | | | | | Baloise Holding AG | | | 1,849,031 | |
| | 1,206 | | | | | Banque Cantonale Vaudoise | | | 476,302 | |
| | 5,270 | | | | | Bucher Industries AG | | | 1,457,890 | |
| | 2,337 | | | | | Flughafen Zuerich AG | | | 1,023,336 | |
| | 4,108 | | | | | Galenica AG | | | 1,299,762 | |
| | 2,879 | | | | | Geberit AG — Reg | | | 442,165 | |
| | 24,384 | | | | | Holcim Ltd. | | | 2,379,196 | |
| | 395 | | | | | Jelmoli Holding AG | | | 1,033,370 | |
| | 3,259 | | | | | Kuehne & Nagel International AG | | | 349,475 | |
| | 11,285 | | | @ | | Logitech International SA | | | 341,002 | |
| | 23,882 | | | @ | | Micronas Semiconductor Hold | | | 182,852 | |
| | 3,095 | | | @ | | OC Oerlikon Corp. AG | | | 1,063,022 | |
| | 2,859 | | | | | Pargesa Holding SA | | | 326,943 | |
| | 18,090 | | | @ | | PSP Swiss Property AG | | | 1,120,011 | |
| | 2,960 | | | | | Rieter Holding AG | | | 1,099,341 | |
| | 4,143 | | | | | Schindler Holding AG | | | 334,380 | |
| | 207 | | | | | SGS SA | | | 290,170 | |
| | 1,567 | | | | | Sulzer AG | | | 204,474 | |
| | 7,051 | | | | | Swatch Group AG — BR | | | 1,882,745 | |
| | 7,365 | | | @ | | Swiss Life Holding | | | 2,189,079 | |
| | 5,089 | | | | | Syngenta AG | | | 1,512,476 | |
| | 2,345 | | | | | Synthes, Inc. | | | 320,851 | |
| | 1,787 | | | | | Valora Holding AG | | | 446,183 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 24,058,037 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 14.3% |
| | 383,694 | | | | | ARM Holdings PLC | | | 761,683 | |
| | 71,773 | | | | | Axon Group PLC | | | 638,441 | |
| | 155,388 | | | | | Balfour Beatty PLC | | | 1,348,734 | |
| | 57,038 | | | | | Bellway PLC | | | 790,077 | |
| | 146,778 | | | | | Bodycote International | | | 700,832 | |
| | 99,130 | | | | | Bovis Homes Group PLC | | | 909,773 | |
| | 168,559 | | | | | Brit Insurance Holdings PLC | | | 814,017 | |
| | 138,947 | | | @ | | British Airways PLC | | | 620,249 | |
| | 162,965 | | | | | Britvic PLC | | | 1,070,864 | |
| | 214,384 | | | | | Cable & Wireless PLC | | | 632,570 | |
| | 8,207 | | | @ | | Cairn Energy PLC | | | 509,053 | |
| | 29,940 | | | | | Capita Group PLC | | | 392,457 | |
| | 65,881 | | | | | Capital & Regional PLC | | | 564,627 | |
| | 11,518 | | | | | Charter PLC | | | 204,346 | |
| | 276,142 | | | | | Chaucer Holdings PLC | | | 490,180 | |
| | 25,664 | | | | | Chemring Group PLC | | | 1,252,608 | |
| | 28,438 | | | @ | | CLS Holdings PLC | | | 195,541 | |
| | 188,021 | | | @ | | Colt Telecom Group SA | | | 628,642 | |
| | 9,116 | | | @ | | Dana Petroleum PLC | | | 311,478 | |
| | 44,935 | | | | | De La Rue PLC | | | 759,954 | |
| | 1,053,322 | | | | | Dimension Data Holdings PLC | | | 984,875 | |
| | 55,102 | | | | | Drax Group PLC | | | 654,846 | |
| | 175,426 | | | | | DS Smith PLC | | | 451,602 | |
| | 194,905 | | | | | Enodis PLC | | | 934,910 | |
| | 19,132 | | | | | Expro International Group | | | 575,423 | |
| | 212,334 | | | | | F&C Asset Management PLC | | | 720,765 | |
| | 393,827 | | | | | Friends Provident PLC | | | 924,669 | |
| | 96,497 | | | | | Gcap Media PLC | | | 421,327 | |
| | 81,148 | | | | | Greene King PLC | | | 826,828 | |
| | 5,533 | | | | | Greggs PLC | | | 504,820 | |
| | 46,462 | | | | | Group 4 Securicor PLC | | | 209,656 | |
| | 20,735 | | | | | Hikma Pharmaceuticals PLC | | | 192,381 | |
| | 121,718 | | | | | Informa PLC | | | 830,065 | |
| | 97,627 | | | @ | | Invensys PLC | | | 575,810 | |
| | 291,008 | | | | | JJB Sports PLC | | | 655,921 | |
| | 35,226 | | | | | Keller Group PLC | | | 471,295 | |
| | 38,266 | | | | | Kier Group PLC | | | 893,259 | |
| | 200,386 | | | | | Kingston Communications PLC | | | 189,982 | |
| | 45,542 | | | | | London Stock Exchange Group PLC | | | 967,988 | |
| | 19,175 | | | | | Lonmin PLC | | | 1,173,475 | |
| | 50,135 | | | | | Luminar Group Holdings PLC | | | 318,529 | |
| | 175,909 | | | | | Meggitt PLC | | | 1,031,957 | |
| | 64,448 | | | | | Melrose PLC | | | 211,846 | |
| | 194,211 | | | | | Millennium & Copthorne Hotels PLC | | | 1,533,250 | |
| | 69,301 | | | | | Mondi PLC | | | 549,225 | |
| | 43,492 | | | | | Morgan Sindall PLC | | | 868,690 | |
| | 52,024 | | | | | Next PLC | | | 1,176,373 | |
| | 150,465 | | | | | Northumbrian Water Group PLC | | | 971,986 | |
| | 365,673 | | | | | Pendragon PLC | | | 284,053 | |
| | 103,059 | | | | | Pennon Group PLC | | | 1,292,712 | |
| | 32,510 | | | | | Petrofac Ltd. | | | 378,807 | |
| | 44,761 | | | @ | | Premier Oil PLC | | | 1,365,743 | |
| | 6,796 | | | | | Randgold Resources Ltd. | | | 305,351 | |
| | 105,138 | | | | | Rok PLC | | | 266,718 | |
| | 49,610 | | | | | Schroders PLC | | | 1,031,297 | |
| | 45,739 | | | | | Schroders PLC — Non Voting | | | 855,117 | |
| | 181,293 | | | | | Shanks Group PLC | | | 894,069 | |
| | 33,755 | | | | | Spectris PLC | | | 509,282 | |
| | 724,463 | | | @ | | Spirent Communications PLC | | | 1,009,731 | |
| | 76,874 | | | | | SSL International PLC | | | 699,209 | |
| | 275,163 | | | | | Stagecoach Group PLC | | | 1,393,360 | |
| | 32,925 | | | | | Travis Perkins PLC | | | 630,401 | |
| | 310,640 | | | | | Trinity Mirror PLC | | | 1,665,198 | |
| | 79,031 | | | | | Tullow Oil PLC | | | 1,180,340 | |
| | 43,552 | | | | | Vedanta Resources PLC | | | 1,920,226 | |
| | 13,788 | | | | | Venture Production PLC | | | 202,469 | |
| | 58,965 | | | | | VT Group PLC | | | 790,001 | |
| | 91,077 | | | | | Weir Group PLC | | | 1,497,494 | |
| | 62,617 | | | | | WH Smith PLC | | | 529,192 | |
| | 9,494 | | | | | Whitbread PLC | | | 227,845 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 52,346,494 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 0.2% |
| | 45,600 | | | | | Virgin Media, Inc. | | | 588,240 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 588,240 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $356,241,642) | | | 333,502,940 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
168
PORTFOLIO OF INVESTMENTS
ING Disciplined International SmallCap Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
REAL ESTATE INVESTMENT TRUSTS: 2.3% |
| | | | | | | |
| | | | | | | Australia: 0.6% |
| | 540,087 | | | | | CFS Retail Property Trust | | $ | 1,137,646 | |
| | 763,837 | | | | | Commonwealth Property Office Fund | | | 1,009,641 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,147,287 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 0.4% |
| | 2,407 | | | | | Gecina SA | | | 338,771 | |
| | 4,749 | | | | | Unibail | | | 1,219,660 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,558,431 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.4% |
| | 11,878 | | | | | Nieuwe Steen Investments Funds NV | | | 343,685 | |
| | 8,316 | | | | | Wereldhave NV | | | 1,051,693 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,395,378 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.9% |
| | 44,105 | | | | | Hammerson PLC | | | 878,111 | |
| | 70,194 | | | | | Liberty International PLC | | | 1,358,381 | |
| | 95,577 | | | | | Segro PLC | | | 870,310 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,106,802 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $9,006,955) | | | 8,207,898 | |
| | | | | | | | | | | |
| |
EXCHANGE-TRADED FUNDS: 3.9% |
| | | | | | | |
| | | | | | | Developed Markets: 3.9% |
| | 190,000 | | | | | iShares MSCI EAFE Index Fund | | | 14,403,900 | |
| | | | | | | | | | | |
| | | | | | | Total Exchange-Traded Funds
(Cost $13,887,784) | | | 14,403,900 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 0.3% |
| | | | | | | |
| | | | | | | Australia: 0.1% |
| | 387,423 | | | ** | | ING Office Fund | | | 509,390 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 509,390 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.2% |
| | 15,617 | | | | | Caledonia Investments PLC | | | 632,655 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 632,655 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $1,221,474) | | | 1,142,045 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 0.7% |
| | | | | | | |
| | | | | | | Germany: 0.1% |
| | 6,970 | | | | | Draegerwerk AG | | | 464,843 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 464,843 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 0.6% |
| | 34,219 | | | @ | | Instituto Finanziario Industriale S.p.A. | | | 897,139 | |
| | 407,276 | | | | | Unipol S.p.A. | | | 1,183,042 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,080,181 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $3,291,113) | | | 2,545,024 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.0% |
| | | | | | | |
| | | | | | | United Kingdom: 0.0% |
| | 57,398 | | | | | Melrose PLC — Subscription Shares | | | 24,632 | |
| | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $-) | | | 24,632 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $383,648,968)* | | | 98.3 | % | | $ | 359,826,439 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.7 | | | | 6,163,637 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 365,990,076 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| # | | 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. |
| ** | | Investment in affiliate |
| I | | Illiquid security |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Fund’s Board of Trustees. |
| | | |
| * | | Cost for federal income tax purposes is $390,603,699. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 13,015,725 | |
| Gross Unrealized Depreciation | | | (43,792,985 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (30,777,260 | ) |
| | | | | |
The following short position was held by ING Disciplined International Small Cap Fund at April 30, 2008:
| | | | | | | | | |
Shares | | Description | | Market Value |
| |
| | (2,731 | ) | | Hunter Douglas NV | | $ | (171,124 | ) |
| | | | | | | | | |
| | | | | Total Short Positions
(Proceeds $169,952) | | $ | (171,124 | ) |
| | | | | | | | | |
See Accompanying Notes to Financial Statements
169
PORTFOLIO OF INVESTMENTS
ING Disciplined International SmallCap Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.2 | % |
| Aerospace/Defense | | | 1.2 | |
| Agriculture | | | 0.5 | |
| Airlines | | | 1.8 | |
| Apparel | | | 1.1 | |
| Auto Manufacturers | | | 0.5 | |
| Auto Parts & Equipment | | | 0.4 | |
| Banks | | | 4.1 | |
| Beverages | | | 0.8 | |
| Biotechnology | | | 0.5 | |
| Building Materials | | | 3.1 | |
| Chemicals | | | 3.2 | |
| Closed-End Funds | | | 0.3 | |
| Coal | | | 0.4 | |
| Commercial Services | | | 1.6 | |
| Computers | | | 0.9 | |
| Distribution/Wholesale | | | 0.6 | |
| Diversified | | | 1.7 | |
| Diversified Financial Services | | | 2.2 | |
| Electric | | | 2.0 | |
| Electrical Components & Equipment | | | 1.8 | |
| Electronics | | | 2.0 | |
| Energy — Alternate Sources | | | 0.0 | |
| Engineering & Construction | | | 5.3 | |
| Environmental Control | | | 0.2 | |
| Food | | | 3.5 | |
| Food Service | | | 0.4 | |
| Forest Products & Paper | | | 1.0 | |
| Gas | | | 0.2 | |
| Hand/Machine Tools | | | 1.2 | |
| Healthcare — Products | | | 0.8 | |
| Healthcare — Services | | | 0.9 | |
| Holding Companies — Diversified | | | 1.6 | |
| Home Builders | | | 0.8 | |
| Home Furnishings | | | 0.6 | |
| Household Products/Wares | | | 0.4 | |
| Insurance | | | 5.0 | |
| Internet | | | 0.7 | |
| Investment Companies | | | 1.6 | |
| Iron/Steel | | | 2.0 | |
| Leisure Time | | | 0.6 | |
| Lodging | | | 1.6 | |
| Machinery — Construction & Mining | | | 0.1 | |
| Machinery — Diversified | | | 2.5 | |
| Media | | | 2.4 | |
| Metal Fabricate/Hardware | | | 0.6 | |
| Mining | | | 4.2 | |
| Miscellaneous Manufacturing | | | 2.1 | |
| Office Property | | | 0.3 | |
| Office/Business Equipment | | | 0.2 | |
| Oil & Gas | | | 3.3 | |
| Oil & Gas Services | | | 2.0 | |
| Pharmaceuticals | | | 3.0 | |
| Pipelines | | | 0.1 | |
| Real Estate | | | 3.3 | |
| Retail | | | 3.2 | |
| Semiconductors | | | 1.6 | |
| Shopping Centers | | | 0.3 | |
| Software | | | 0.9 | |
| Telecommunications | | | 2.4 | |
| Textiles | | | 0.3 | |
| Toys/Games/Hobbies | | | 0.2 | |
| Transportation | | | 1.2 | |
| Venture Capital | | | 0.3 | |
| Water | | | 0.6 | |
| Other Long-Term Investments | | | 3.9 | |
| Other Assets and Liabilities — Net | | | 1.7 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
170
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 79.2% |
| | | | | | | |
| | | | | | | Argentina: 1.1% |
| | 171,040 | | | @,L | | Telecom Argentina SA ADR | | $ | 3,003,462 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,003,462 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 12.8% |
| | 343,189 | | | | | AES Tiete SA | | | 3,406,701 | |
| | 64,080 | | | L | | Brasil Telecom Participacoes SA ADR | | | 4,845,089 | |
| | 322,950 | | | L | | Centrais Eletricas Brasileiras SA ADR — Class A | | | 4,675,444 | |
| | 137,704 | | | | | Cia de Saneamento Basico do Estado de Sao Paulo | | | 3,505,148 | |
| | 244,800 | | | | | Marfrig Frigorificos e Comercio de Alimentos SA | | | 2,857,129 | |
| | 386,900 | | | | | Sul America SA | | | 5,956,426 | |
| | 72,850 | | | L | | Tele Norte Leste Participacoes SA ADR | | | 1,668,994 | |
| | 99,900 | | | L | | Tim Participacoes SA ADR | | | 3,354,642 | |
| | 851,658 | | | @,L | | Vivo Participacoes SA ADR | | | 5,748,692 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 36,018,265 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 4.0% |
| | 9,333,000 | | | | | Weiqiao Textile Co. | | | 11,151,220 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,151,220 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Czech Republic: 2.3% |
| | 211,508 | | | | | Telefonica O2 Czech Republic A/S | | | 6,467,724 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,467,724 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Estonia: 1.0% |
| | 77,771 | | | | | As Eesti Telekom GDR | | | 2,778,836 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,778,836 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 5.9% |
| | 1,867,000 | | | | | Dickson Concepts International Ltd. | | | 1,378,588 | |
| | 12,162,000 | | | | | First Pacific Co. | | | 8,913,785 | |
| | 14,936,000 | | | | | Fountain SET Holdings | | | 2,365,117 | |
| | 3,826,000 | | | | | SmarTone Telecommunications Holding Ltd. | | | 4,030,185 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,687,675 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hungary: 2.9% |
| | 1,543,179 | | | | | Magyar Telekom Telecommunications PLC | | | 8,205,902 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,205,902 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 0.6% |
| | 2,178,000 | | | | | Gudang Garam Tbk PT | | | 1,784,012 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,784,012 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 1.7% |
| | 1,384,690 | | | | | Bezeq Israeli Telecommunication Corp., Ltd. | | | 2,565,008 | |
| | 95,399 | | | | | Partner Communications | | | 2,242,875 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,807,883 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Malaysia: 2.3% |
| | 5,304,714 | | | @ | | Proton Holdings Bhd | | | 6,537,780 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,537,780 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 2.6% |
| | 284,249 | | | | | Alfa SA de CV | | | 1,991,877 | |
| | 145,250 | | | L | | Telefonos de Mexico SA de CV ADR | | | 5,237,715 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,229,592 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pakistan: 0.7% |
| | 968,500 | | | | | Nishat Mills Ltd. | | | 1,954,999 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,954,999 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Panama: 3.4% |
| | 499,400 | | | L | | Banco Latinoamericano de Exportaciones SA | | | 9,388,720 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,388,720 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.6% |
| | 1,219,500 | | | | | MobileOne Ltd. | | | 1,741,305 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,741,305 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 4.4% |
| | 774,340 | | | @ | | Imperial Holdings Ltd. | | | 7,797,404 | |
| | 1,006,200 | | | | | Jd Group Ltd. | | | 4,675,300 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,472,704 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 12.1% |
| | 1,061,460 | | | L | | Daeduck Electronics Co. | | | 5,583,040 | |
| | 69,260 | | | | | Korea Electric Power Corp. | | | 2,311,613 | |
| | 65,060 | | | | | KT Corp. | | | 3,008,295 | |
| | 100,820 | | | @ | | KT Freetel Co., Ltd. | | | 2,780,325 | |
| | 260,920 | | | L | | Kumho Tire Co., Inc. | | | 2,974,930 | |
| | 7,232 | | | | | Lotte Chilsung Beverage Co., Ltd. | | | 8,272,171 | |
| | 7,148 | | | | | SK Telecom Co., Ltd. | | | 1,438,510 | |
| | 333,962 | | | | | SK Telecom Co., Ltd. ADR | | | 7,537,522 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 33,906,406 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 12.0% |
| | 11,086,612 | | | | | China Motor Corp. | | | 9,702,529 | |
| | 2,530,508 | | | | | Far EasTone Telecommunications Co., Ltd. | | | 4,300,223 | |
| | 6,696,000 | | | @ | | Taishin Financial Holdings Co., Ltd. | | | 3,475,930 | |
| | 4,292,985 | | | | | United Microelectronics Corp. | | | 2,626,317 | |
| | 14,631,000 | | | | | Walsin Lihwa Corp. | | | 7,383,458 | |
| | 9,644,000 | | | | | Winbond Electronics Corp. | | | 2,843,928 | |
| | 1,899,718 | | | | | Yageo Corp. GDR | | | 3,275,684 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 33,608,069 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 5.4% |
| | 43,831,400 | | | | | Charoen Pokphand Foods PCL | | | 6,580,778 | |
| | 10,648,800 | | | @ | | Siam City Bank Public Co. | | | 5,965,930 | |
| | 4,078,500 | | | | | Thai Union Frozen Products Public Co., Ltd. | | | 2,491,515 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,038,223 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 3.4% |
| | 2,168,920 | | | | | Arcelik A/S | | | 9,651,293 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,651,293 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $207,714,769) | | | 222,434,070 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 13.2% |
| | | | | | | |
| | | | | | | Brazil: 5.1% |
| | 1,284,267 | | | | | Braskem SA | | | 10,932,727 | |
| | 144,175 | | | | | Contax Participacoes SA | | | 3,374,087 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,306,814 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 8.1% |
| | 396,530 | | | | | Hyundai Motor Co. | | | 13,829,273 | |
| | 220,240 | | | | | LG Chemical Ltd. | | | 8,986,541 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,815,814 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $39,235,830) | | | 37,122,628 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $246,950,599) | | | 259,556,698 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
171
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
SHORT-TERM INVESTMENTS: 17.6% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 2.9% |
| $ | 8,061,000 | | | L,Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 8,060,653 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost 8,060,653) | | | 8,060,653 | |
| | | | | | | | | | | |
| | | | | | | Securities Lending Collateralcc: 14.7% | | | | | | | | |
| | 41,426,178 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | | 41,426,178 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $41,426,178) | | | 41,426,178 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $49,486,831) | | | 49,486,831 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $296,437,430)* | | | 110.0 | % | | $ | 309,043,529 | |
| | | | | Other Assets and
Liabilities - Net | | | (10.0 | ) | | | (27,984,911 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 281,058,618 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $296,495,828. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 33,824,877 | |
| Gross Unrealized Depreciation | | | (21,277,176 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 12,547,701 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Agriculture | | | 3.0 | % |
| Auto Manufacturers | | | 10.7 | |
| Auto Parts & Equipment | | | 1.1 | |
| Banks | | | 6.7 | |
| Beverages | | | 2.9 | |
| Chemicals | | | 7.1 | |
| Commercial Services | | | 1.2 | |
| Electric | | | 3.7 | |
| Electrical Components & Equipment | | | 2.6 | |
| Electronics | | | 3.2 | |
| Food | | | 1.9 | |
| Holding Companies — Diversified | | | 6.7 | |
| Home Furnishings | | | 3.4 | |
| Insurance | | | 2.1 | |
| Retail | | | 2.2 | |
| Semiconductors | | | 1.9 | |
| Telecommunications | | | 25.2 | |
| Textiles | | | 5.5 | |
| Water | | | 1.3 | |
| Short-Term Investments | | | 17.6 | |
| Other Assets and Liabilities — Net | | | (10.0 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
At April 30, 2008 the following forward foreign currency contracts were outstanding for the ING Emerging Countries Fund:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | |
| | | | | Settlement
| | Exchange
| | | | Unrealized
|
Currency | | Buy/Sell | | Date | | For | | Value | | Appreciation |
| | | | | | | USD | | | | |
| |
South Africa Rand
ZAR 9,497,379 | | | Buy | | | | 05/06/08 | | | | 1,235,030 | | | | 1,254,068 | | | $ | 19,038 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 19,038 | |
| | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
172
PORTFOLIO OF INVESTMENTS
ING European Real Estate Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 26.5% |
| | | | | | | |
| | | | | | | Austria: 6.5% |
| | 2,600 | | | @ | | CA Immobilien Anlagen AG | | $ | 60,455 | |
| | 11,700 | | | @ | | Immoeast Immobilien Anlagen AG | | | 118,439 | |
| | 12,600 | | | | | Immofinanz Immobilien Anlagen AG | | | 139,131 | |
| | 6,500 | | | @ | | Meinl European Land Ltd. | | | 84,767 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 402,792 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 3.7% |
| | 14,500 | | | | | Citycon OYJ | | | 84,178 | |
| | 11,700 | | | | | Sponda OYJ | | | 145,236 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 229,414 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 1.0% |
| | 1,400 | | | | | Deutsche Euroshop AG | | | 59,435 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 59,435 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 7.4% |
| | 13,700 | | | | | Castellum AB | | | 152,970 | |
| | 15,300 | | | | | Hufvudstaden AB | | | 150,487 | |
| | 38,600 | | | | | Klovern AB | | | 149,675 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 453,132 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 2.9% |
| | 2,900 | | | @ | | PSP Swiss Property AG | | | 179,549 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 179,549 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 5.0% |
| | 11,100 | | | | | Helical Bar PLC | | | 74,598 | |
| | 50,900 | | | | | Safestore Holdings Ltd. | | | 146,518 | |
| | 9,800 | | | | | St. Modwen Properties PLC | | | 87,952 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 309,068 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $1,649,276) | | | 1,633,390 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 65.1% |
| | | | | | | |
| | | | | | | France: 26.4% |
| | 580 | | | | | Fonciere Des Regions | | | 88,009 | |
| | 1,700 | | | | | Gecina SA | | | 239,265 | |
| | 1,900 | | | | | Klepierre | | | 114,900 | |
| | 5,020 | | | | | Mercialys | | | 233,071 | |
| | 3,690 | | | | | Unibail | | | 947,683 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,622,928 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 1.9% |
| | 6,200 | | | @ | | Alstria Office AG | | | 118,479 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 118,479 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 8.8% |
| | 3,900 | | | | | Corio NV | | | 362,497 | |
| | 3,100 | | | | | Eurocommercial Properties NV | | | 177,741 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 540,238 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 28.0% |
| | 9,490 | | | | | British Land Co. PLC | | | 157,498 | |
| | 25,200 | | | | | Brixton PLC | | | 148,447 | |
| | 3,300 | | | | | Derwent Valley Holdings PLC | | | 87,343 | |
| | 8,200 | | | | | Great Portland Estates PLC | | | 74,228 | |
| | 13,820 | | | | | Hammerson PLC | | | 275,148 | |
| | 25,600 | | | | | Land Securities Group PLC | | | 778,473 | |
| | 10,590 | | | | | Liberty International PLC | | | 204,936 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,726,073 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $3,958,037) | | | 4,007,718 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 2.7% |
| | | | | | | |
| | | | | | | Luxembourg: 2.7% |
| | 10,300 | | | | | Prologis European Properties | | | 167,263 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $140,048) | | | 167,263 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $5,747,361)* | | | 94.3 | % | | $ | 5,808,371 | |
| | | | | Other Assets and
Liabilities - Net | | | 5.7 | | | | 351,213 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 6,159,584 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| | | |
| * | | Cost for federal income tax purposes is $5,902,259. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 143,963 | |
| Gross Unrealized Depreciation | | | (237,851 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (93,888 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Closed-End Funds | | | 2.7 | % |
| Diversified | | | 60.5 | |
| Office Property | | | 4.6 | |
| Real Estate | | | 24.1 | |
| Storage/Warehousing | | | 2.4 | |
| Other Assets and Liabilities — Net | | | 5.7 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
173
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 86.6% |
| | | | | | | |
| | | | | | | Australia: 3.8% |
| | 137,401 | | | | | BHP Billiton Ltd. | | $ | 5,538,878 | |
| | 22,034 | | | | | Crown Ltd. | | | 228,057 | |
| | 34,518 | | | | | John Fairfax Holdings Ltd. | | | 113,496 | |
| | 1,806,764 | | | | | Macquarie Airports Management Ltd. | | | 5,351,803 | |
| | 178,511 | | | | | Newcrest Mining Ltd. | | | 4,902,609 | |
| | 22,034 | | | | | Publishing & Broadcasting Ltd. | | | 74,761 | |
| | 77,171 | | | | | Rio Tinto Ltd. | | | 9,958,392 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,167,996 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 3.8% |
| | 29,034 | | | | | Erste Bank der Oesterreichischen Sparkassen AG | | | 2,140,236 | |
| | 4,643 | | | | | Flughafen Wien AG | | | 587,141 | |
| | 212,232 | | | @ | | Immoeast Immobilien Anlagen AG | | | 2,148,417 | |
| | 13,129 | | | | | Oesterreichische Elektrizitaetswirtschafts AG | | | 1,015,291 | |
| | 146,795 | | | | | OMV AG | | | 11,025,807 | |
| | 37,989 | | | | | Raiffeisen International Bank Holding AG | | | 6,103,292 | |
| | 18,558 | | | | | Telekom Austria AG | | | 456,847 | |
| | 22,052 | | | | | Wiener Staedtische Allgemeine Versicherung AG | | | 1,647,747 | |
| | 17,795 | | | | | Wienerberger AG | | | 1,020,424 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,145,202 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 1.0% |
| | 2,814 | | | | | Groupe Bruxelles Lambert SA | | | 356,087 | |
| | 30,001 | | | | | Kbc Ancora | | | 3,191,369 | |
| | 25,760 | | | | | KBC Groep NV | | | 3,467,419 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,014,875 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.3% |
| | 16,828 | | | @,L | | Central European Media Enterprises Ltd. | | | 1,784,105 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,784,105 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bulgaria: 0.0% |
| | 25,950 | | | @ | | Bulgaria Housing Compensation Notes | | | 7,914 | |
| | 117,641 | | | @ | | Bulgaria Reg Compensation Vouchers | | | 36,714 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 44,628 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 3.9% |
| | 25,564 | | | | | Barrick Gold Corp. | | | 982,606 | |
| | 27,048 | | | | | Cameco Corp. | | | 940,275 | |
| | 4,607 | | | | | Canadian Natural Resources Ltd. | | | 391,350 | |
| | 87,396 | | | @ | | Eldorado Gold Corp. | | | 596,178 | |
| | 29,519 | | | | | Imperial Oil Ltd. | | | 1,741,653 | |
| | 332,007 | | | @ | | Ivanhoe Mines Ltd. | | | 3,177,984 | |
| | 30,115 | | | @ | | OPTI Canada, Inc. | | | 637,525 | |
| | 34,662 | | | | | Potash Corp. of Saskatchewan | | | 6,380,685 | |
| | 48,986 | | | @ | | Research In Motion Ltd. | | | 5,958,167 | |
| | 42,393 | | | | | Suncor Energy, Inc. | | | 4,783,998 | |
| | 36,061 | | | | | Talisman Energy, Inc. | | | 729,384 | |
| | 59,492 | | | @ | | UTS Energy Corp. | | | 319,583 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,639,388 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Chile: 0.3% |
| | 74,302 | | | L | | Sociedad Quimica y Minera de Chile SA ADR | | | 2,118,350 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,118,350 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.4% |
| | 2,785,580 | | | | | Beijing Capital International Airport Co., Ltd. | | | 2,842,959 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,842,959 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Cyprus: 0.3% |
| | 147,856 | | | | | Bank of Cyprus Public Co., Ltd. | | | 2,035,601 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,035,601 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Czech Republic: 2.6% |
| | 71,969 | | | | | Komercni Banka A/S | | | 17,658,192 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 17,658,192 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 1.1% |
| | 2,755 | | | | | ALK-Abello A/S | | | 323,408 | |
| | 25,705 | | | | | Carlsberg A/S | | | 3,410,444 | |
| | 2,781 | | | | | Danske Bank A/S | | | 95,745 | |
| | 8,993 | | | | | Flsmidth & Co. A/S | | | 943,711 | |
| | 34,776 | | | | | Novo-Nordisk A/S | | | 2,379,310 | |
| | 5,943 | | | @ | | Vestas Wind Systems A/S | | | 644,358 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,796,976 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 2.9% |
| | 109,990 | | | | | Fortum OYJ | | | 4,653,008 | |
| | 30,177 | | | | | Kemira OYJ | | | 433,968 | |
| | 6,134 | | | | | Kesko OYJ | | | 230,766 | |
| | 5,007 | | | | | Metso OYJ | | | 214,508 | |
| | 266,031 | | | | | Nokia OYJ | | | 7,998,023 | |
| | 17,987 | | | | | OKO Bank | | | 357,074 | |
| | 25,562 | | | | | Orion OYJ | | | 537,217 | |
| | 20,980 | | | | | Outotec OYJ | | | 1,306,904 | |
| | 37,103 | | | | | Ramirent OYJ | | | 612,715 | |
| | 32,706 | | | | | Sanoma-WSOY OYJ | | | 838,757 | |
| | 5,012 | | | | | Wartsila OYJ | | | 341,334 | |
| | 88,520 | | | | | YIT OYJ | | | 2,495,528 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,019,802 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 8.6% |
| | 4,126 | | | | | Accor SA | | | 339,959 | |
| | 34,414 | | | L | | ADP | | | 4,081,815 | |
| | 25,849 | | | | | Air Liquide | | | 3,875,968 | |
| | 3,563 | | | | | Alstom | | | 818,744 | |
| | 14,734 | | | | | BNP Paribas | | | 1,570,716 | |
| | 17,929 | | | | | Bouygues SA | | | 1,328,719 | |
| | 4,509 | | | @ | | Bureau Veritas SA | | | 250,779 | |
| | 17,670 | | | | | Cie de Saint-Gobain | | | 1,405,754 | |
| | 1,940 | | | | | EDF Energies Nouvelles S.A. | | | 130,276 | |
| | 52,424 | | | | | Electricite de France | | | 5,479,456 | |
| | 6,547 | | | | | Eurazeo | | | 843,039 | |
| | 79,389 | | | | | France Telecom SA | | | 2,484,155 | |
| | 14,672 | | | | | JC Decaux SA | | | 418,442 | |
| | 18,942 | | | | | Lafarge SA | | | 3,396,475 | |
| | 47,613 | | | | | LVMH Moet Hennessy Louis Vuitton SA | | | 5,404,083 | |
| | 10,138 | | | | | Neuf Cegetel | | | 567,096 | |
| | 3,616 | | | | | Nexity | | | 160,997 | |
| | 22,766 | | | | | Pernod-Ricard SA | | | 2,603,406 | |
| | 20,223 | | | | | PPR | | | 2,614,674 | |
| | 4,248 | | | | | Remy Cointreau SA | | | 261,233 | |
| | 16,153 | | | | | Sanofi-Aventis | | | 1,245,092 | |
| | 22,551 | | | | | Societe Television Francaise 1 | | | 473,889 | |
| | 4,060 | | | | | Sodexho Alliance SA | | | 270,750 | |
| | 76,609 | | | | | Suez SA | | | 5,398,019 | |
| | 3,701 | | | | | Technip SA | | | 341,035 | |
| | 112,492 | | | | | Total SA | | | 9,423,019 | |
| | 7,838 | | | | | Veolia Environnement | | | 564,576 | |
| | 34,710 | | | | | Vinci SA | | | 2,546,303 | |
| | 8,216 | | | | | Vivendi | | | 331,248 | |
| | 1,802 | | | | | Wendel Investissement | | | 247,574 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 58,877,291 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
174
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Germany: 5.7% |
| | 3,261 | | | | | Adidas AG | | $ | 206,997 | |
| | 31,288 | | | | | Bayer AG | | | 2,642,541 | |
| | 22,993 | | | | | Commerzbank AG | | | 825,634 | |
| | 3,543 | | | | | Continental AG | | | 416,029 | |
| | 28,378 | | | | | DaimlerChrysler AG | | | 2,203,924 | |
| | 10,089 | | | | | Deutsche Boerse AG | | | 1,458,806 | |
| | 11,990 | | | | | Deutsche Post AG | | | 372,586 | |
| | 2,963 | | | | | Deutsche Postbank AG | | | 257,986 | |
| | 23,302 | | | | | E.ON AG | | | 4,737,193 | |
| | 96,654 | | | | | Fraport AG Frankfurt Airport Services Worldwide | | | 6,980,043 | |
| | 42,881 | | | | | Fresenius AG | | | 3,640,657 | |
| | 62,848 | | | | | Fresenius Medical Care AG & Co. KGaA | | | 3,325,701 | |
| | 8,109 | | | @ | | Hamburger Hafen und Logistik AG | | | 674,885 | |
| | 14,549 | | | | | Henkel KGaA | | | 584,059 | |
| | 5,460 | | | | | K+S AG | | | 2,232,386 | |
| | 13,693 | | | @ | | KarstadtQuelle AG | | | 255,875 | |
| | 2,404 | | | | | MAN AG | | | 334,220 | |
| | 5,218 | | | | | Merck KGaA | | | 739,161 | |
| | 7,703 | | | | | Praktiker Bau- und Heimwerkermaerkte AG | | | 165,808 | |
| | 9,382 | | | @ | | Premiere AG | | | 196,859 | |
| | 4,466 | | | | | Rheinmetall AG | | | 337,073 | |
| | 80,932 | | | | | Rhoen Klinikum AG | | | 2,446,704 | |
| | 27,838 | | | | | Siemens AG | | | 3,273,592 | |
| | 7,436 | | | @ | | Tognum AG | | | 211,427 | |
| | 16,172 | | | @ | | UkrTelecom GDR | | | 148,733 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 38,668,879 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.4% |
| | 47,975 | | | | | Hellenic Telecommunications Organization SA | | | 1,422,137 | |
| | 417,214 | | | | | Veterin SA | | | 1,347,968 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,770,105 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.4% |
| | 830,069 | | | | | China Merchants Holdings International Co., Ltd. | | | 4,247,761 | |
| | 163,708 | | | | | China Mobile Ltd. | | | 2,816,992 | |
| | 899,346 | | | @ | | Galaxy Entertainment Group Ltd. | | | 684,883 | |
| | 1,337,557 | | | | | GOME Electrical Appliances Holdings Ltd. | | | 3,039,231 | |
| | 134,443 | | | @ | | Hutchison Telecommunications International Ltd. | | | 188,015 | |
| | 847,827 | | | | | Melco International Development | | | 1,154,615 | |
| | 60,505 | | | @,L | | Melco PBL Entertainment Macau Ltd. ADR | | | 798,666 | |
| | 2,661,535 | | | | | Shun TAK Holdings Ltd. | | | 3,551,175 | |
| | 165,351 | | | | | Texwinca Holdings Ltd. | | | 124,442 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,605,780 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hungary: 3.4% |
| | 652,879 | | | | | Magyar Telekom Telecommunications PLC | | | 3,471,704 | |
| | 2,922 | | | | | Mol Magyar Olaj- es Gazipari Rt | | | 416,509 | |
| | 439,836 | | | L | | OTP Bank Nyrt | | | 18,756,010 | |
| | 3,242 | | | | | Richter Gedeon Nyrt | | | 669,015 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 23,313,238 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 2.7% |
| | 37,037 | | | @,# | | Banking Index Benchmark Exchange Traded Scheme — Bank BeESCitigroup Global Markets (Participation Certificate, Issuer: Citigroup Global Markets) | | | 691,443 | |
| | 69,099 | | | @,# | | Bharti Airtel Ltd. (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 1,532,737 | |
| | 26,555 | | | @,# | | ICICI Bank Ltd.(Participation Certificate, Issuer: Citigroup Global Markets) | | | 575,457 | |
| | 45,686 | | | @,# | | ICICI Bank, Ltd. (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 992,355 | |
| | 17,180 | | | @,# | | Mahindra & Mahindra Ltd. (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 284,332 | |
| | 13,033 | | | @,# | | Oil & Natural Gas Corp. Ltd. (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 332,479 | |
| | 1,463 | | | @ | | State Bank of India GDR | | | 128,166 | |
| | 214,331 | | | @,# | | State Bank of India Ltd. (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 9,392,827 | |
| | 301 | | | @,# | | State Bank of India Ltd. (Low Exercise Price Warrant, Issuer: Deutsche Bank AG London) | | | 13,191 | |
| | 7,318 | | | | | State Bank of India Ltd. GDR | | | 673,867 | |
| | 81,344 | | | @,# | | State Bank of India Ltd.(Participation Certificate, Issuer: Citigroup Global Markets) | | | 3,564,814 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,181,668 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 0.1% |
| | 687,400 | | | | | Semen Gresik Persero Tbk PT | | | 314,199 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 314,199 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.1% |
| | 24,561 | | | | | CRH PLC | | | 930,309 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 930,309 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 2.4% |
| | 3,579 | | | | | Autogrill S.p.A. | | | 54,319 | |
| | 175,731 | | | | | Banca Popolare di Milano Scrl | | | 2,155,459 | |
| | 19,182 | | | | | Banca Popolare di Sondrio Scarl | | | 269,002 | |
| | 12,866 | | | | | Banche Popolari Unite Scpa | | | 338,590 | |
| | 75,233 | | | | | Buzzi Unicem S.p.A. | | | 1,913,062 | |
| | 115,933 | | | | | Credito Emiliano S.p.A. | | | 1,539,535 | |
| | 4,612 | | | | | Finmeccanica S.p.A. | | | 159,971 | |
| | 46,112 | | | | | Geox S.p.A. | | | 662,142 | |
| | 573,094 | | | | | Intesa Sanpaolo S.p.A. | | | 4,038,565 | |
| | 14,645 | | | | | Italcementi S.p.A. | | | 315,731 | |
| | 1,917 | | | | | Lottomatica S.p.A. | | | 58,858 | |
| | 100,235 | | | | | Mediobanca S.p.A. | | | 2,082,118 | |
| | 364,590 | | | | | Telecom Italia S.p.A. | | | 762,485 | |
| | 272,422 | | | | | UniCredito Italiano S.p.A. | | | 2,053,140 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,402,977 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 6.3% |
| | 6,190 | | | | | Acom Co., Ltd. | | | 191,463 | |
| | 6,625 | | | | | Aeon Credit Service Co., Ltd. | | | 105,443 | |
| | 6,900 | | | | | Aiful Corp. | | | 134,520 | |
| | 6,601 | | | | | Aisin Seiki Co., Ltd. | | | 231,381 | |
| | 22,000 | | | | | Bank of Kyoto Ltd. | | | 281,162 | |
| | 80,000 | | | | | Bank of Yokohama Ltd. | | | 587,455 | |
| | 36,305 | | | | | Canon, Inc. | | | 1,825,329 | |
See Accompanying Notes to Financial Statements
175
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Japan (continued) |
| | 138 | | | | | Central Japan Railway Co. | | $ | 1,354,671 | |
| | 39,000 | | | | | Chiba Bank Ltd. | | | 308,234 | |
| | 5,859 | | | @ | | Credit Saison Co., Ltd. | | | 157,269 | |
| | 25,000 | | | | | Daihatsu Motor Co., Ltd. | | | 299,041 | |
| | 5,700 | | | | | Daikin Industries Ltd. | | | 285,250 | |
| | 14,608 | | | | | Daiwa Securities Group, Inc. | | | 144,934 | |
| | 18,288 | | | | | Denso Corp. | | | 637,888 | |
| | 52 | | | | | Dentsu, Inc. | | | 119,894 | |
| | 230 | | | | | East Japan Railway Co. | | | 1,835,380 | |
| | 8,200 | | | | | Eisai Co., Ltd. | | | 290,493 | |
| | 7,000 | | | | | Fanuc Ltd. | | | 737,822 | |
| | 91 | | | | | Fuji Television Network, Inc. | | | 149,300 | |
| | 28,000 | | | | | Gunma Bank Ltd. | | | 224,655 | |
| | 19,728 | | | | | Honda Motor Co., Ltd. | | | 629,647 | |
| | 13,300 | | | | | Hoya Corp. | | | 371,201 | |
| | 8,600 | | | | | Ibiden Co., Ltd. | | | 375,282 | |
| | 66,000 | | | | | Isuzu Motors Ltd. | | | 319,727 | |
| | 15,000 | | | | | Itochu Corp. | | | 157,103 | |
| | 298 | | | | | Japan Tobacco, Inc. | | | 1,449,057 | |
| | 5,068 | | | | | JFE Holdings, Inc. | | | 278,426 | |
| | 9,989 | | | | | JS Group Corp. | | | 174,009 | |
| | 6,548 | | | | | JSR Corp. | | | 147,883 | |
| | 178 | | | | | KDDI Corp. | | | 1,143,464 | |
| | 72,800 | | | | | Komatsu Ltd. | | | 2,215,588 | |
| | 15,319 | | | | | Kubota Corp. | | | 107,328 | |
| | 5,700 | | | | | Kyocera Corp. | | | 526,455 | |
| | 16,093 | | | | | Makita Corp. | | | 553,866 | |
| | 40,484 | | | | | Matsushita Electric Industrial Co., Ltd. | | | 944,924 | |
| | 10,700 | | | | | Mitsubishi Corp. | | | 344,447 | |
| | 23,000 | | | | | Mitsubishi Electric Corp. | | | 235,660 | |
| | 169,640 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 1,869,260 | |
| | 14,000 | | | | | Mitsui & Co., Ltd. | | | 328,804 | |
| | 7,723 | | | | | Mitsui Fudosan Co., Ltd. | | | 195,160 | |
| | 73 | | | @ | | Mizuho Financial Group, Inc. | | | 379,903 | |
| | 7,201 | | | | | Nintendo Co., Ltd. | | | 3,980,519 | |
| | 92,000 | | | | | Nippon Electric Glass Co., Ltd. | | | 1,431,034 | |
| | 48 | | | | | Nippon Telegraph & Telephone Corp. | | | 206,723 | |
| | 13,707 | | | | | Nissan Motor Co., Ltd. | | | 122,232 | |
| | 4,902 | | | | | Nitto Denko Corp. | | | 203,030 | |
| | 12,355 | | | | | Nomura Holdings, Inc. | | | 215,740 | |
| | 42,000 | | | | | NSK Ltd. | | | 350,026 | |
| | 713 | | | | | NTT DoCoMo, Inc. | | | 1,047,260 | |
| | 3,167 | | | | | Olympus Corp. | | | 104,255 | |
| | 6,592 | | | | | Promise Co., Ltd. | | | 208,904 | |
| | 33,000 | | | | | Ricoh Co., Ltd. | | | 571,259 | |
| | 19 | | | | | Sapporo Hokuyo Holdings, Inc. | | | 153,992 | |
| | 8,486 | | | | | Seven & I Holdings Co., Ltd. | | | 254,041 | |
| | 12,000 | | | | | Sharp Corp. | | | 202,132 | |
| | 6,000 | | | | | Shin-Etsu Chemical Co., Ltd. | | | 371,521 | |
| | 23,000 | | | | | Shizuoka Bank Ltd. | | | 282,372 | |
| | 36,233 | | | | | Sony Corp. | | | 1,670,507 | |
| | 11,499 | | | | | Stanley Electric Co., Ltd. | | | 292,850 | |
| | 45,000 | | | | | Sumitomo Chemical Co., Ltd. | | | 292,319 | |
| | 10,092 | | | | | Sumitomo Corp. | | | 135,872 | |
| | 9,000 | | | | | Sumitomo Electric Industries Ltd. | | | 116,152 | |
| | 41,992 | | | | | Sumitomo Heavy Industries | | | 354,741 | |
| | 83,145 | | | | | Sumitomo Metal Industries Ltd. | | | 350,201 | |
| | 35 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 301,189 | |
| | 50,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 449,549 | |
| | 16,000 | | | | | Suruga Bank Ltd. | | | 226,431 | |
| | 62,000 | | | | | Suzuki Motor Corp. | | | 1,573,087 | |
| | 10,300 | | | | | Takeda Pharmaceutical Co., Ltd. | | | 544,571 | |
| | 6,560 | | | | | Takefuji Corp. | | | 155,167 | |
| | 55,700 | | | | | Toyota Motor Corp. | | | 2,838,575 | |
| | 15,550 | | | @ | | Yamada Denki Co., Ltd. | | | 1,335,033 | |
| | 12,301 | | | | | Yamaha Motor Co., Ltd. | | | 237,712 | |
| | 4,846 | | | | | Yamato Holdings Co., Ltd. | | | 70,964 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 43,298,738 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.7% |
| | 45,487 | | | @,L | | Millicom Intl Cellular S.A. | | | 4,913,051 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,913,051 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.1% |
| | 589,184 | | | | | America Movil SA de CV — Series L | | | 1,704,287 | |
| | 7,138 | | | | | America Movil SA de CV ADR | | | 413,718 | |
| | 92,118 | | | | | Controladora Comercial Mexicana SA de CV | | | 259,085 | |
| | 270,698 | | | | | Corporacion Moctezuma | | | 706,892 | |
| | 40,364 | | | | | Fomento Economico Mexicano SA de CV ADR | | | 1,753,816 | |
| | 45,023 | | | | | Grupo Cementos Chihuahua | | | 229,606 | |
| | 437,516 | | | | | Grupo Financiero Banorte SA de CV | | | 1,892,931 | |
| | 15,312 | | | L | | Grupo Televisa SA ADR | | | 377,900 | |
| | 84,743 | | | @ | | Urbi Desarrollos Urbanos SA de C.V | | | 271,872 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,610,107 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.8% |
| | 7,967 | | | | | Koninklijke Vopak NV | | | 542,861 | |
| | 105,264 | | | | | Royal KPN NV | | | 1,921,765 | |
| | 8,874 | | | | | TNT NV | | | 342,822 | |
| | 71,226 | | | | | Unilever NV | | | 2,377,724 | |
| | 14,114 | | | @ | | X5 Retail Group NV GDR | | | 487,625 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,672,797 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.1% |
| | 560,523 | | | | | Auckland International Airport Ltd. | | | 933,880 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 933,880 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 2.1% |
| | 26,217 | | | | | Aker Kvaerner ASA | | | 662,059 | |
| | 148,657 | | | | | DnB NOR ASA | | | 2,206,852 | |
| | 22,142 | | | | | Norsk Hydro ASA | | | 325,559 | |
| | 172,309 | | | | | Statoil ASA | | | 6,198,998 | |
| | 80,266 | | | @ | | Telenor ASA | | | 1,608,656 | |
| | 43,563 | | | | | Yara International ASA | | | 3,158,332 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,160,456 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Philippines: 0.1% |
| | 34,952 | | | | | Ayala Corp. | | | 244,255 | |
| | 685,243 | | | | | Ayala Land, Inc. | | | 157,584 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 401,839 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Poland: 3.5% |
| | 7,413 | | | | | Bank BPH | | | 297,010 | |
| | 65,145 | | | | | Bank Handlowy w Warszawie | | | 2,474,327 | |
| | 81,407 | | | | | Bank Pekao SA | | | 7,055,823 | |
| | 7,912 | | | | | Bank Zachodni WBK SA | | | 578,456 | |
| | 4,132 | | | @ | | BRE Bank SA | | | 668,864 | |
| | 723,291 | | | | | Polish Oil & Gas | | | 1,359,660 | |
| | 325,777 | | | | | Powszechna Kasa Oszczednosci Bank Polski SA | | | 6,738,843 | |
| | 501,112 | | | | | Telekomunikacja Polska SA | | | 5,034,947 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 24,207,930 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 0.6% |
| | 117,929 | | | | | Energias de Portugal SA | | | 744,070 | |
| | 411,747 | | | | | Jeronimo Martins | | | 3,249,954 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,994,024 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
176
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Romania: 0.6% |
| | 198,352 | | | | | Romanian Bank for Development SA | | $ | 1,791,821 | |
| | 10,411,795 | | | | | SNP Petrom SA | | | 2,161,339 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,953,160 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 5.5% |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 232,328 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 122,696 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 122,392 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 266,089 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 136,864 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 773,508 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 153,889 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 35,443 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 170,510 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 47,755 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 38,621 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 84,269 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 77,940 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 63,631 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 116,288 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 23,817 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 53,823 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 41,014 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 8,839 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 604,820 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 146,525 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 565,250 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | 94,500 | |
| | 35 | | | I | | Deutsche Bank AG, London (Pending Spin-off of Unified Energy Sys- REG S GDR) | | | — | |
| | 7,980 | | | # | | Evraz Group SA GDR | | | 823,830 | |
| | 19,394 | | | | | Lukoil-Spon ADR | | | 1,742,762 | |
| | 13,766 | | | L | | Mechel OAO ADR | | | 2,007,083 | |
| | — | | | | | MMC Norilsk Nickel | | | — | |
| | 156,050 | | | | | MMC Norilsk Nickel ADR | | | 4,187,036 | |
| | | | | | | | | | | | | | | |
| | 165,873 | | | | | Novatek OAO | | | 1,255,659 | |
| | 63,146 | | | @,# | | Novorossiysk Sea Trading Port — Spon GDR | | | 954,294 | |
| | 128,748 | | | L | | OAO Gazprom ADR | | | 6,812,274 | |
| | 183,170 | | | @ | | OAO Rosneft Oil Co. GDR | | | 1,782,639 | |
| | 1,536 | | | @ | | Open Investments | | | 380,629 | |
| | 73,302 | | | @,# | | Pharmstandard OJSC GDR | | | 1,826,657 | |
| | 5,126 | | | | | Polyus Gold Co. ZAO | | | 273,092 | |
| | 22,878 | | | L | | Polyus Gold Co. ZAO ADR | | | 1,216,365 | |
| | 1,367,507 | | | | | Sberbank RF | | | 4,432,883 | |
| | 14,797 | | | # | | Severstal JSC GDR | | | 361,047 | |
| | 45,519 | | | @,#,L | | Sistema-Hals GDR | | | 335,475 | |
| | 5,041 | | | @,# | | Uralkali GDR | | | 263,392 | |
| | 87,064 | | | @ | | Uralkaliy | | | 907,780 | |
| | 21,696 | | | L | | Uralsvyazinform ADR | | | 201,773 | |
| | 45,444 | | | | | Vimpel-Communications OAO ADR | | | 1,370,591 | |
| | 74,728 | | | @,#,L | | VTB Bank OJSC GDR | | | 554,634 | |
| | 10,175 | | | | | Wimm-Bill-Dann Foods — Class S | | | 785,153 | |
| | 11,032 | | | L | | Wimm-Bill-Dann Foods OJSC ADR | | | 1,342,594 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 37,798,453 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 0.2% |
| | 28,985 | | | | | Impala Platinum Holdings Ltd. | | | 1,173,061 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,173,061 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 0.3% |
| | 1,415 | | | @ | | NHN Corp. | | | 327,952 | |
| | 2,706 | | | | | Samsung Electronics Co., Ltd. | | | 1,918,305 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,246,257 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 1.6% |
| | 2,200 | | | | | Acciona SA | | | 624,673 | |
| | 76,440 | | | | | Banco Bilbao Vizcaya Argentaria SA | | | 1,753,163 | |
| | 13,822 | | | | | Gamesa Corp. Tecnologica SA | | | 667,409 | |
| | 119,910 | | | @ | | Iberdrola Renovables | | | 870,636 | |
| | 136,870 | | | | | Iberdrola SA | | | 1,994,405 | |
| | 5,345 | | | | | Inditex SA | | | 289,413 | |
| | 157,621 | | | | | Telefonica SA | | | 4,529,231 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,728,930 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.2% |
| | 28,188 | | | | | Getinge AB | | | 715,410 | |
| | 12,241 | | | | | Hennes & Mauritz AB | | | 721,198 | |
| | 8,988 | | | | | Modern Times Group AB | | | 656,335 | |
| | 270,193 | | | | | Nordea Bank AB | | | 4,443,579 | |
| | 35,816 | | | | | Swedbank AB | | | 900,907 | |
| | 65,911 | | | | | TeliaSonera AB | | | 585,632 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,023,061 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 5.2% |
| | 64,454 | | | | | ABB Ltd. | | | 1,966,839 | |
| | 6,066 | | | | | BKW FMB Energie AG | | | 747,319 | |
| | 76,283 | | | | | Compagnie Financiere Richemont AG | | | 4,585,886 | |
| | 4,121 | | | | | Flughafen Zuerich AG | | | 1,804,522 | |
| | 83,018 | | | | | Holcim Ltd. | | | 8,100,233 | |
| | 12,176 | | | | | Nestle SA | | | 5,811,339 | |
| | 7,125 | | | | | Nobel Biocare Holding AG | | | 256,389 | |
See Accompanying Notes to Financial Statements
177
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Switzerland (continued) |
| | 9,552 | | | | | Roche Holding AG | | $ | 1,580,629 | |
| | 719 | | | | | SGS SA | | | 1,007,886 | |
| | 14,267 | | | | | Swatch Group AG — BR | | | 3,809,548 | |
| | 3,154 | | | | | Synthes, Inc. | | | 431,541 | |
| | 68,320 | | | | | Xstrata PLC | | | 5,318,954 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 35,421,085 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.9% |
| | 202,000 | | | | | Asia Cement Corp. | | | 362,625 | |
| | 6 | | | @,# | | Baskets-Luxembourg Exchange (TWSEBKI Tracking Basket, Issuer: Merrill Lynch Intl & Co.) | | | 735,476 | |
| | 25,662 | | | | | Cathay Financial Holding Co., Ltd. GDR | | | 716,740 | |
| | 1,114,906 | | | @,# | | Chinatrust Financial Holding Co., Ltd. (Taiwan Participation Certificates, Issuer: Citigroup Global Markets Hold) | | | 1,161,933 | |
| | 98,975 | | | L | | Chunghwa Telecom Ltd. ADR | | | 2,524,852 | |
| | 56,617 | | | | | Far Eastern Textile Co., Ltd. GDR | | | 952,060 | |
| | 18,876 | | | | | First Financial Holding Co., Ltd. GDR | | | 458,764 | |
| | 30,456 | | | | | Fubon Financial Holding Co., Ltd. GDR | | | 363,103 | |
| | 97,790 | | | @ | | President Chain (Low Exercise Price Warrant, Issuer: Deutsche Bank AG London) | | | 343,348 | |
| | 68,413 | | | @ | | Taiwan Basket (Issuer: Goldman Sachs International) | | | 2,681,700 | |
| | 336,000 | | | | | Taiwan Cement Corp. | | | 545,055 | |
| | 232,562 | | | @,# | | Taiwan Fertilizer Co. Ltd. (Low Exercise Price Warrant, Issuer: Deutsche Bank AG London) | | | 1,125,608 | |
| | 511,519 | | | @,# | | Tatung Co, Ltd. (Low Exercise Price Warrant, Issuer: Deutsche Bank AG London) | | | 308,842 | |
| | 224,229 | | | @,# | | Uni-President (Equity Linked Certificate, Issuer: CLSA Financial Products Ltd.) | | | 320,800 | |
| | 475,028 | | | @,# | | Yuanta Financial Holding Co., Ltd. (Taiwan Participation Certificates, Issuer: Citigroup Global Markets Hold) | | | 452,184 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,053,090 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ukraine: 0.7% |
| | 5,090,724 | | | @ | | JSCB Ukrsotsbank | | | 954,327 | |
| | 3,938,839 | | | | | Raiffeisen Bank Aval | | | 633,463 | |
| | 16,379 | | | @ | | Ukrnafta Oil Co. ADR | | | 930,124 | |
| | 87 | | | @ | | Ukrnafta Oil Co. GDR | | | 29,122 | |
| | 13,145,713 | | | @ | | UkrTelecom | | | 2,492,918 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,039,954 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 7.8% |
| | 46,197 | | | | | Amec PLC | | | 725,188 | |
| | 75,043 | | | | | Anglo American PLC | | | 4,850,873 | |
| | 44,091 | | | | | BAE Systems PLC | | | 406,459 | |
| | 51,146 | | | | | BHP Billiton PLC | | | 1,825,121 | |
| | 746,241 | | | | | BP PLC | | | 9,042,744 | |
| | 92,650 | | | | | BT Group PLC | | | 407,844 | |
| | 84,227 | | | | | Burberry Group PLC | | | 803,860 | |
| | 81,425 | | | | | Cadbury Schweppes PLC | | | 935,271 | |
| | 223,417 | | | | | Compass Group PLC | | | 1,506,105 | |
| | 243,112 | | | | | Diageo PLC | | | 4,958,421 | |
| | 74,544 | | | | | GlaxoSmithKline PLC | | | 1,649,001 | |
| | 30,125 | | | | | Intertek Group PLC | | | 578,605 | |
| | 25,534 | | | @ | | Peter Hambro Mining PLC | | | 636,808 | |
| | 93,221 | | | | | QinetiQ PLC | | | 357,199 | |
| | 52,149 | | | | | Reckitt Benckiser PLC | | | 3,030,308 | |
| | 41,583 | | | | | Rio Tinto PLC | | | 4,847,476 | |
| | 184,008 | | | @ | | Rolls-Royce Group PLC | | | 1,594,641 | |
| | 14,735,526 | | | @ | | Rolls-Royce Group PLC — B Shares Entitlement | | | 29,299 | |
| | 96,442 | | | | | Royal Bank of Scotland Group PLC | | | 652,755 | |
| | 242,963 | | | | | Smith & Nephew PLC | | | 3,141,116 | |
| | 409,312 | | | | | Tesco PLC | | | 3,466,692 | |
| | 2,478,630 | | | | | Vodafone Group PLC | | | 7,844,031 | |
| | 25,578 | | | | | WPP Group PLC | | | 311,749 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 53,601,566 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 0.1% |
| | 40,798 | | | | | Israel Chemicals Ltd. | | | 749,406 | |
| | 7,145 | | | | | KKR Private Equity Investors LP | | | 105,780 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 855,186 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $463,604,412) | | | 593,419,145 | |
| | | | | | | | | | | |
| |
EXCHANGE-TRADED FUNDS: 6.1% |
| | | | | | | |
| | | | | | | Australia: 0.4% |
| | 102,364 | | | | | iShares MSCI Australia Index Fund | | | 2,843,672 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,843,672 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 0.1% |
| | 8,372 | | | L | | iShares MSCI Brazil Index Fund | | | 754,233 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 754,233 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Eurozone: 4.0% |
| | 463,689 | | | | | iShares DJ Euro STOXX 50 | | | 27,549,250 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 27,549,250 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 0.3% |
| | 22,252 | | | | | Lyxor ETF CAC 40 | | | 1,747,694 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,747,694 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.2% |
| | 95,623 | | | | | IShares PLC-IFTSE 100 Fund | | | 1,168,812 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,168,812 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 1.1% |
| | 464,030 | | | L | | iShares MSCI Taiwan Index Fund | | | 7,684,337 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,684,337 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Exchange-Traded Funds
(Cost $40,113,529) | | | 41,747,998 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 0.1% |
| | | | | | | |
| | | | | | | Romania: 0.0% |
| | 127,000 | | | @ | | SIF 3 Transilvania Brasov | | | 82,807 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 82,807 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 0.1% |
| | 104,109 | | | @ | | RenShares Utilities Ltd. | | | 327,943 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 327,943 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $208,931) | | | 410,750 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.6% |
| | | | | | | |
| | | | | | | Brazil: 1.0% |
| | 269,292 | | | | | Petroleo Brasileiro SA | | | 6,891,879 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,891,879 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.1% |
| | 4,031 | | | | | Volkswagen AG | | | 662,054 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 662,054 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
178
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Russia: 0.5% |
| | 3,602 | | | I | | Silvinit BRD | | $ | 2,791,550 | |
| | 378,180 | | | @ | | URSA Bank | | | 514,677 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,306,227 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $8,326,428) | | | 10,860,160 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.0% |
| | | | | | | |
| | | | | | | Austria: 0.0% |
| | 22,052 | | | | | Vienna Insurance Group — Rights | | | 7,782 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,782 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.0% |
| | 14,114 | | | | | X5 Retail Group — Rights | | | 42,912 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 42,912 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $-) | | | 50,694 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $512,253,300) | | | 646,488,747 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 5.6% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 0.3% |
| $ | 2,019,000 | | | L,Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 2,018,913 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $2,018,913) | | | 2,018,913 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 5.3% |
| | 36,733,478 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | | 36,733,478 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $36,733,478) | | | 36,733,478 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $38,752,391) | | | 38,752,391 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $551,005,691)* | | | 100.0 | % | | $ | 685,241,138 | |
| | | | | Other Assets and
Liabilities - Net | | | (0.0 | ) | | | (190,346 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 685,050,792 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
| cc | | Securities purchased with cash collateral for securities loaned. |
| I | | Illiquid security |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $554,304,186. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 145,503,620 | |
| Gross Unrealized Depreciation | | | (14,566,668 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 130,936,952 | |
| | | | | |
See Accompanying Notes to Financial Statements
179
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.1 | % |
| Aerospace/Defense | | | 0.3 | |
| Agriculture | | | 0.2 | |
| Apparel | | | 0.2 | |
| Auto Manufacturers | | | 1.3 | |
| Auto Parts & Equipment | | | 0.2 | |
| Banks | | | 18.2 | |
| Beverages | | | 1.9 | |
| Building Materials | | | 2.9 | |
| Chemicals | | | 4.0 | |
| Closed-End Funds | | | 0.0 | |
| Commercial Services | | | 0.5 | |
| Computers | | | 0.9 | |
| Distribution/Wholesale | | | 0.1 | |
| Diversified Financial Services | | | 1.8 | |
| Electric | | | 3.6 | |
| Electrical Components & Equipment | | | 0.3 | |
| Electronics | | | 0.5 | |
| Energy — Alternate Sources | | | 0.2 | |
| Engineering & Construction | | | 4.8 | |
| Entertainment | | | 0.0 | |
| Equity Fund | | | 0.1 | |
| Exchange Traded Fund | | | 0.1 | |
| Food | | | 2.8 | |
| Food Service | | | 0.3 | |
| Hand/Machine Tools | | | 0.1 | |
| Healthcare — Products | | | 1.2 | |
| Healthcare — Services | | | 0.8 | |
| Hedge Fund | | | 0.1 | |
| Holding Companies — Diversified | | | 1.7 | |
| Home Builders | | | 0.0 | |
| Home Furnishings | | | 0.4 | |
| Household Products/Wares | | | 0.5 | |
| Insurance | | | 0.3 | |
| Internet | | | 0.1 | |
| Investment Companies | | | 0.1 | |
| Iron/Steel | | | 0.6 | |
| Leisure Time | | | 0.0 | |
| Lodging | | | 0.3 | |
| Machinery — Construction & Mining | | | 0.5 | |
| Machinery — Diversified | | | 0.5 | |
| Media | | | 0.8 | |
| Metal Fabricate/Hardware | | | 0.1 | |
| Mining | | | 7.4 | |
| Miscellaneous Manufacturing | | | 0.5 | |
| Office/Business Equipment | | | 0.4 | |
| Oil & Gas | | | 9.9 | |
| Oil & Gas Services | | | 0.1 | |
| Pharmaceuticals | | | 1.9 | |
| Real Estate | | | 1.4 | |
| Retail | | | 2.6 | |
| Semiconductors | | | 0.3 | |
| Sovereign | | | 0.0 | |
| Telecommunications | | | 8.7 | |
| Textiles | | | 0.2 | |
| Toys/Games/Hobbies | | | 0.6 | |
| Transportation | | | 0.8 | |
| Water | | | 0.1 | |
| Other Long-Term Investments | | | 6.1 | |
| Short-Term Investments | | | 5.6 | |
| Other Assets and Liabilities — Net | | | 0.0 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
At April 30, 2008 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) |
| | | | | | | USD | | | | |
| |
Japanese Yen
JPY 2,658,780,768 | | | Buy | | | | 05/08/08 | | | | 25,106,523 | | | | 25,582,081 | | | $ | 475,558 | |
Japanese Yen
JPY 390,512,085 | | | Buy | | | | 08/01/08 | | | | 3,757,633 | | | | 3,775,945 | | | | 18,312 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 493,870 | |
| | | | | | | | | | | | | | | | | | | | | |
Canada Dollars
CAD 1,704,642 | | | Sell | | | | 06/20/08 | | | | 1,681,273 | | | | 1,691,844 | | | $ | (10,571 | ) |
Czech Republic Koruny
CZK 54,430,896 | | | Sell | | | | 06/20/08 | | | | 3,387,956 | | | | 3,363,607 | | | | 24,349 | |
EURO
EUR 4,011,771 | | | Sell | | | | 06/20/08 | | | | 6,240,350 | | | | 6,249,491 | | | | (9,141 | ) |
Hungary Forint
HUF 1,361,990,933 | | | Sell | | | | 05/19/08 | | | | 7,511,532 | | | | 8,401,843 | | | | (890,311 | ) |
Mexico Pesos
MXN 36,272,822 | | | Sell | | | | 05/21/08 | | | | 3,339,424 | | | | 3,448,948 | | | | (109,525 | ) |
Poland Zlotych
PLN 17,738,950 | | | Sell | | | | 05/19/08 | | | | 7,215,942 | | | | 8,009,134 | | | | (793,192 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (1,788,391 | ) |
| | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
180
PORTFOLIO OF INVESTMENTS
ING Greater China Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 96.8% |
| | | | | | | |
| | | | | | | China: 21.6% |
| | 542,000 | | | | | Anta Sports Products Ltd | | $ | 605,637 | |
| | 163,000 | | | | | China Coal Energy Co. — Shares H | | | 343,952 | |
| | 281,000 | | | | | China COSCO Holdings Co., Ltd. | | | 836,489 | |
| | 263,000 | | | @ | | China High Speed Transmission Equipment Group Co., Ltd. | | | 460,617 | |
| | 536,000 | | | | | China Life Insurance Co., Ltd. | | | 2,335,033 | |
| | 1,864,000 | | | | | China Petroleum & Chemical Corp. | | | 2,002,843 | |
| | 1,936,000 | | | @ | | China Southern Airlines Co., Ltd. | | | 1,270,821 | |
| | 914,000 | | | | | China Telecom Corp., Ltd. | | | 612,215 | |
| | 212,000 | | | | | Dongfang Electrical Machinery Co., Ltd. | | | 862,168 | |
| | 2,002,000 | | | | | Industrial and Commercial Bank of China Ltd. | | | 1,580,797 | |
| | 1,102,000 | | | | | PetroChina Co., Ltd. | | | 1,655,868 | |
| | 650,000 | | | | | Shanghai Forte Land Co. | | | 285,626 | |
| | 69,033 | | | @ | | SPG Land Holdings Ltd. | | | 35,310 | |
| | 725,000 | | | | | Travelsky Technology Ltd. | | | 628,946 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,516,322 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 41.7% |
| | 220,000 | | | | | Bank of East Asia Ltd. | | | 1,250,211 | |
| | 147,000 | | | | | Cheung Kong Holdings Ltd. | | | 2,296,053 | |
| | 338,500 | | | | | China Mobile Ltd. | | | 5,824,711 | |
| | 1,130,000 | | | | | China Overseas Land & Investment Ltd. | | | 2,374,435 | |
| | 1,590,000 | | | | | China Power International Development Ltd. | | | 578,146 | |
| | 248,000 | | | | | China Resources Enterprise | | | 908,834 | |
| | 494,000 | | | | | Chow Sang Sang Holdings International Ltd. | | | 637,224 | |
| | 2,921,000 | | | | | Chuang’s China Investments | | | 206,964 | |
| | 322,000 | | | | | CLP Holdings Ltd. | | | 2,554,807 | |
| | 422,000 | | | | | CNOOC Ltd. | | | 749,086 | |
| | 607,920 | | | | | Dah Chong Hong Holdings Ltd. | | | 199,552 | |
| | 66,300 | | | | | Hang Seng Bank Ltd. | | | 1,324,559 | |
| | 210,000 | | | | | Henderson Land Development Co., Ltd. | | | 1,606,445 | |
| | 111,900 | | | | | Hong Kong Exchanges and Clearing Ltd. | | | 2,286,668 | |
| | 171,500 | | | | | HongKong Electric Holdings | | | 1,076,143 | |
| | 51,000 | | | | | Hutchison Whampoa Ltd. | | | 498,390 | |
| | 622,000 | | | | | Hysan Development Co., Ltd. | | | 1,804,347 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,176,575 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 33.5% |
| | 516,461 | | | | | Asustek Computer, Inc. | | | 1,671,081 | |
| | 310,000 | | | | | AU Optronics Corp. | | | 605,929 | |
| | 915,000 | | | | | Cathay Financial Holding Co., Ltd. | | | 2,567,292 | |
| | 999,000 | | | | | Chunghwa Telecom Co., Ltd. | | | 2,577,293 | |
| | 1,212,863 | | | | | Far Eastern Textile Co., Ltd. | | | 2,030,899 | |
| | 370,488 | | | | | Far EasTone Telecommunications Co., Ltd. | | | 629,589 | |
| | 2,072,000 | | | | | First Financial Holding Co., Ltd. | | | 2,506,168 | |
| | 235,000 | | | | | Formosa Plastics Corp. | | | 670,221 | |
| | 1,265,791 | | | | | Goldsun Development & Construction Co., Ltd. | | | 941,394 | |
| | 92,000 | | | | | Huang Hsiang Construction Co. | | | 259,283 | |
| | 80,560 | | | | | MediaTek, Inc. | | | 1,044,952 | |
| | 290,000 | | | | | Oriental Union Chemical Corp. | | | 325,152 | |
| | 97,987 | | | @ | | Taiwan Basket (Issuer: Deutsche BankAG London) | | | 1,221,606 | |
| | 318,000 | | | | | Taiwan Cement Corp. | | | 515,856 | |
| | 273,000 | | | | | Taiwan Fertilizer Co., Ltd. | | | 1,324,374 | |
| | 142,000 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 1,596,080 | |
| | 120,400 | | | # | | Wintek Corp. GDR | | | 545,701 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 21,032,870 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $51,381,613) | | | 60,725,767 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 1.4% |
| | | | | | | |
| | | | | | | Hong Kong: 1.4% |
| | 360,000 | | | | | Link Real Estate Investment Trust | | | 861,861 | |
| | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $823,764) | | | 861,861 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $52,205,377)* | | | 98.2 | % | | $ | 61,587,628 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.8 | | | | 1,122,227 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 62,709,855 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| # | | 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. |
| | | |
| * | | Cost for federal income tax purposes is $52,540,497. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 11,809,785 | |
| Gross Unrealized Depreciation | | | (2,762,654 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 9,047,131 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Airlines | | | 2.0 | % |
| Apparel | | | 1.0 | |
| Banks | | | 6.6 | |
| Building Materials | | | 2.3 | |
| Chemicals | | | 3.7 | |
| Coal | | | 0.6 | |
| Diversified Financial Services | | | 7.7 | |
| Electric | | | 6.7 | |
| Electrical Components & Equipment | | | 2.1 | |
| Electronics | | | 4.5 | |
| Equity Fund | | | 2.0 | |
| Holding Companies — Diversified | | | 2.9 | |
| Insurance | | | 7.8 | |
| Oil & Gas | | | 7.0 | |
| Real Estate | | | 13.8 | |
| Retail | | | 1.0 | |
| Semiconductors | | | 4.2 | |
| Shopping Centers | | | 1.4 | |
| Software | | | 1.0 | |
| Telecommunications | | | 15.4 | |
| Textiles | | | 3.2 | |
| Transportation | | | 1.3 | |
| Other Assets and Liabilities — Net | | | 1.8 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
181
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 95.1% |
| | | | | | | |
| | | | | | | Australia: 4.9% |
| | 50,360 | | | | | AGL Energy Ltd. | | $ | 592,348 | |
| | 7,269 | | | | | Australia & New Zealand Banking Group Ltd. | | | 150,065 | |
| | 30,979 | | | | | BHP Billiton Ltd. | | | 1,248,819 | |
| | 113,237 | | | | | BlueScope Steel Ltd. | | | 1,181,228 | |
| | 17,873 | | | | | CSL Ltd. | | | 669,017 | |
| | 116,560 | | | | | CSR Ltd. | | | 346,928 | |
| | 288,667 | | | | | Harvey Norman Holdings Ltd. | | | 978,577 | |
| | 60,438 | | | | | Iluka Resources Ltd. | | | 225,854 | |
| | 8 | | | | | Lion Nathan Ltd. | | | 63 | |
| | 297,427 | | | | | Macquarie Airports Management Ltd. | | | 881,006 | |
| | 3,164 | | | | | Macquarie Group Ltd. | | | 188,386 | |
| | 302,574 | | | | | Macquarie Infrastructure Group | | | 806,915 | |
| | 76,460 | | | | | National Australia Bank Ltd. | | | 2,164,824 | |
| | 16,211 | | | | | Origin Energy Ltd. | | | 212,866 | |
| | 103,135 | | | | | PaperlinX Ltd. | | | 245,247 | |
| | 36,442 | | | | | Qantas Airways Ltd. | | | 116,463 | |
| | 4,227 | | | | | Rio Tinto Ltd. | | | 545,466 | |
| | 48,507 | | | | | Santos Ltd. | | | 728,584 | |
| | 57,410 | | | | | Telstra Corp., Ltd. | | | 246,424 | |
| | 4,596 | | | | | Woodside Petroleum Ltd. | | | 242,050 | |
| | 14,554 | | | | | Woolworths Ltd. | | | 392,979 | |
| | 155,704 | | | | | Zinifex Ltd. | | | 1,481,371 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,645,480 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 2.1% |
| | 132,857 | | | | | Immofinanz Immobilien Anlagen AG | | | 1,467,024 | |
| | 11,485 | | | @ | | Meinl European Land Ltd. | | | 149,776 | |
| | 9,962 | | | | | OMV AG | | | 748,248 | |
| | 62,874 | | | | | Telekom Austria AG | | | 1,547,785 | |
| | 20,368 | | | | | Voestalpine AG | | | 1,555,321 | |
| | 3,540 | | | | | Wiener Staedtische Allgemeine Versicherung AG | | | 264,512 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,732,666 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 1.0% |
| | 530 | | | | | Colruyt SA | | | 134,162 | |
| | 8,212 | | | | | Delhaize Group | | | 708,344 | |
| | 1,500 | | | | | D’ieteren SA | | | 462,178 | |
| | 4,142 | | | @ | | Fortis — Strip VVPR | | | 65 | |
| | 663 | | | | | Groupe Bruxelles Lambert SA | | | 83,897 | |
| | 909 | | | | | InBev NV | | | 74,507 | |
| | 5,230 | | | | | KBC Groep NV | | | 703,983 | |
| | 3,264 | | | | | Solvay SA | | | 477,615 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,644,751 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.1% |
| | 185,000 | | | @ | | Fosun International | | | 147,812 | |
| | 30,200 | | | | | Tencent Holdings Ltd. | | | 200,312 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 348,124 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 0.7% |
| | 2,385 | | | | | Danisco A/S | | | 160,304 | |
| | 1,802 | | | | | East Asiatic Co., Ltd. A/S | | | 159,271 | |
| | 16,018 | | | @ | | Vestas Wind Systems A/S | | | 1,736,720 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,056,295 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.7% |
| | 27,900 | | | | | Elisa OYJ | | | 627,718 | |
| | 83,444 | | | | | Nokia OYJ | | | 2,508,682 | |
| | 11,039 | | | | | Stora Enso OYJ (Euro Denominated Security) | | | 135,650 | |
| | 77,538 | | | | | UPM-Kymmene OYJ | | | 1,487,015 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,759,065 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 10.4% |
| | 1,187 | | | | | ADP | | | 140,789 | |
| | 66,814 | | | | | AXA SA | | | 2,468,626 | |
| | 28,680 | | | | | BNP Paribas | | | 3,057,427 | |
| | 22,649 | | | | | Bouygues SA | | | 1,678,519 | |
| | 9,516 | | | | | Carrefour SA | | | 667,539 | |
| | 21,428 | | | | | Cie de Saint-Gobain | | | 1,704,725 | |
| | 16,251 | | | | | Credit Agricole SA | | | 543,893 | |
| | 18,661 | | | | | Groupe Danone | | | 1,642,767 | |
| | 10,304 | | | | | Lafarge SA | | | 1,847,602 | |
| | 20,397 | | | | | Lagardere SCA | | | 1,454,189 | |
| | 1,049 | | | | | L’Oreal SA | | | 123,952 | |
| | 4,073 | | | | | LVMH Moet Hennessy Louis Vuitton SA | | | 462,286 | |
| | 19,605 | | | | | Natixis | | | 327,995 | |
| | 21,483 | | | | | Peugeot SA | | | 1,490,295 | |
| | 954 | | | | | PPR | | | 123,345 | |
| | 3,475 | | | | | Sanofi-Aventis | | | 267,857 | |
| | 12,726 | | | | | Schneider Electric SA | | | 1,548,589 | |
| | 33,590 | | | | | Suez SA | | | 2,366,817 | |
| | 14,261 | | | @ | | Thomson | | | 90,171 | |
| | 41,668 | | | | | Total SA | | | 3,490,367 | |
| | 20,097 | | | | | Veolia Environnement | | | 1,447,598 | |
| | 40,935 | | | | | Vivendi | | | 1,650,396 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 28,595,744 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 7.0% |
| | 2,792 | | | | | Allianz AG | | | 565,971 | |
| | 11,440 | | | | | BASF AG | | | 1,621,080 | |
| | 3,812 | | | | | Bayer AG | | | 321,956 | |
| | 37,807 | | | | | Commerzbank AG | | | 1,357,576 | |
| | 3,853 | | | | | DaimlerChrysler AG | | | 299,236 | |
| | 21,378 | | | | | Deutsche Bank AG | | | 2,553,466 | |
| | 1,467 | | | | | Deutsche Boerse AG | | | 212,119 | |
| | 17,452 | | | | | Deutsche Lufthansa AG | | | 460,485 | |
| | 54,236 | | | | | Deutsche Post AG | | | 1,685,368 | |
| | 6,839 | | | | | E.ON AG | | | 1,390,338 | |
| | 9,553 | | | | | Fresenius Medical Care AG & Co. KGaA | | | 505,512 | |
| | 560 | | | | | Linde AG | | | 81,628 | |
| | 2,553 | | | | | Merck KGaA | | | 361,648 | |
| | 714 | | | | | Muenchener Rueckversicherungs AG | | | 137,270 | |
| | 1,836 | | | | | Rheinmetall AG | | | 138,573 | |
| | 19,179 | | | | | RWE AG | | | 2,211,827 | |
| | 37,397 | | | | | SAP AG | | | 1,891,821 | |
| | 29,426 | | | | | Siemens AG | | | 3,460,332 | |
| | 470 | | | | | Volkswagen AG | | | 138,668 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,394,874 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.7% |
| | 49,671 | | | | | Hellenic Telecommunications Organization SA | | | 1,472,412 | |
| | 8,378 | | | | | National Bank of Greece SA | | | 460,827 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,933,239 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.3% |
| | 309,096 | | | | | C C Land Holdings Ltd. | | | 339,610 | |
| | 87,149 | | | | | Hang Seng Bank Ltd. | | | 1,741,086 | |
| | 50,992 | | | | | Hong Kong Exchanges and Clearing Ltd. | | | 1,042,018 | |
| | 835,646 | | | @ | | Hutchison Telecommunications International Ltd. | | | 1,168,630 | |
| | 42,140 | | | | | Kingboard Chemicals Holdings | | | 198,854 | |
| | 334,836 | | | | | Melco International Development | | | 455,997 | |
| | 403,556 | | | | | New World Development Ltd. | | | 1,042,909 | |
| | 329,014 | | | | | Shui On Land Ltd. | | | 326,988 | |
| | 111,555 | | | | | Shun TAK Holdings Ltd. | | | 148,843 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,464,935 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.5% |
| | 61,184 | | | | | Allied Irish Banks PLC | | | 1,278,032 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,278,032 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
182
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Italy: 5.4% |
| | 29,651 | | | | | Banca Monte dei Paschi di Siena S.p.A. | | $ | 100,652 | |
| | 80,529 | | | @ | | Banco Popolare Scarl | | | 1,588,657 | |
| | 209,324 | | | | | Enel S.p.A. | | | 2,271,193 | |
| | 90,237 | | | | | ENI S.p.A. | | | 3,473,093 | |
| | 71,006 | | | | | Fiat S.p.A | | | 1,578,433 | |
| | 5,165 | | | | | Finmeccanica S.p.A. | | | 179,153 | |
| | 43,666 | | | | | Intesa Sanpaolo S.p.A. | | | 307,712 | |
| | 21,782 | | | | | Italcementi S.p.A. | | | 469,597 | |
| | 9,267 | | | | | Italcementi S.p.A. RNC | | | 147,348 | |
| | 12,394 | | | | | Lottomatica S.p.A. | | | 380,538 | |
| | 11,302 | | | | | Mediobanca S.p.A. | | | 234,769 | |
| | 670,619 | | | | | Seat Pagine Gialle S.p.A. | | | 129,521 | |
| | 670,476 | | | | | Telecom Italia S.p.A. | | | 1,402,200 | |
| | 363,279 | | | | | UniCredito Italiano S.p.A. | | | 2,737,895 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,000,761 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 20.1% |
| | 20,000 | | | | | Amada Co., Ltd. | | | 167,518 | |
| | 25,000 | | | | | Asahi Kasei Corp. | | | 142,097 | |
| | 3,300 | | | | | Astellas Pharma, Inc. | | | 135,843 | |
| | 210,000 | | | | | Bank of Yokohama Ltd. | | | 1,542,071 | |
| | 11,400 | | | | | Bridgestone Corp. | | | 209,814 | |
| | 7,000 | | | | | Canon Sales Co., Inc. | | | 135,980 | |
| | 47 | | | | | Central Japan Railway Co. | | | 461,373 | |
| | 29,000 | | | @ | | Chiyoda Corp. | | | 218,643 | |
| | 152,000 | | | | | COMSYS Holdings Corp. | | | 1,374,887 | |
| | 11,000 | | | | | Daifuku Co., Ltd. | | | 137,892 | |
| | 58,000 | | | | | Daiichi Sankyo Co., Ltd. | | | 1,598,143 | |
| | 3,800 | | | | | Denso Corp. | | | 132,545 | |
| | 87,000 | | | @ | | Dowa Holdings Co., Ltd. | | | 589,237 | |
| | 228 | | | | | East Japan Railway Co. | | | 1,819,420 | |
| | 12,400 | | | | | EDION Corp. | | | 125,687 | |
| | 6,900 | | | | | Eisai Co., Ltd. | | | 244,439 | |
| | 3,600 | | | | | Fuji Photo Film Co., Ltd. | | | 139,178 | |
| | 144 | | | | | Fuji Television Network, Inc. | | | 236,254 | |
| | 204,000 | | | | | Fujitsu Ltd. | | | 1,305,137 | |
| | 34,000 | | | | | Hitachi Cable Ltd. | | | 135,586 | |
| | 45,100 | | | | | Hitachi High-Technologies Corp. | | | 901,260 | |
| | 44,000 | | | @ | | Hokugin Financial Group, Inc. | | | 139,596 | |
| | 4,800 | | | | | Honda Motor Co., Ltd. | | | 153,199 | |
| | 63 | | | | | Inpex Holdings, Inc. | | | 707,079 | |
| | 45,300 | | | | | Ito En Ltd. | | | 788,307 | |
| | 3,400 | | | | | JFE Holdings, Inc. | | | 186,789 | |
| | 10,000 | | | | | Kao Corp. | | | 270,751 | |
| | 228 | | | | | KDDI Corp. | | | 1,464,662 | |
| | 4,200 | | | | | Keyence Corp. | | | 1,074,025 | |
| | 169 | | | @ | | KK DaVinci Advisors | | | 162,161 | |
| | 65,300 | | | | | Komatsu Ltd. | | | 1,987,334 | |
| | 8,900 | | | | | Komori Corp. | | | 176,139 | |
| | 3,300 | | | | | Konami Corp. | | | 118,722 | |
| | 53,500 | | | | | Konica Minolta Holdings, Inc. | | | 806,218 | |
| | 7,100 | | | | | Leopalace21 Corp. | | | 125,602 | |
| | 3,800 | | | | | Makita Corp. | | | 130,783 | |
| | 100,000 | | | | | Matsushita Electric Industrial Co., Ltd. | | | 2,334,068 | |
| | 12,000 | | | | | Matsushita Electric Works Ltd. | | | 132,391 | |
| | 16,000 | | | | | Mitsubishi Electric Corp. | | | 163,937 | |
| | 70,000 | | | | | Mitsubishi Rayon Co., Ltd. | | | 227,680 | |
| | 39,500 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 435,250 | |
| | 51,000 | | | | | Mitsui Engineering & Shipbuilding Co. Ltd. | | | 166,264 | |
| | 7,000 | | | | | Mitsui Fudosan Co., Ltd. | | | 176,889 | |
| | 42,000 | | | | | Mitsui Mining & Smelting Co., Ltd. | | | 142,994 | |
| | 20,000 | | | | | Mitsui OSK Lines Ltd. | | | 276,139 | |
| | 452 | | | @ | | Mizuho Financial Group, Inc. | | | 2,352,275 | |
| | 5,800 | | | | | Murata Manufacturing Co., Ltd. | | | 307,941 | |
| | 8,000 | | | | | NGK Spark Plug Co., Ltd. | | | 107,744 | |
| | 192,000 | | | | | NHK Spring Co., Ltd. | | | 1,380,656 | |
| | 400 | | | | | Nintendo Co., Ltd. | | | 221,109 | |
| | 76,000 | | | | | Nippon Electric Glass Co., Ltd. | | | 1,182,159 | |
| | 70,000 | | | | | Nippon Steel Corp. | | | 394,006 | |
| | 81 | | | | | Nippon Telegraph & Telephone Corp. | | | 348,845 | |
| | 62,000 | | | | | Nippon Yusen KK | | | 604,386 | |
| | 120,000 | | | @ | | Nishi-Nippon City Bank Ltd. | | | 368,365 | |
| | 23,000 | | | | | Nisshinbo Industries, Inc. | | | 253,276 | |
| | 17,500 | | | | | NOK Corp. | | | 347,242 | |
| | 31,000 | | | | | Obayashi Corp. | | | 150,600 | |
| | 18,000 | | | | | Olympus Corp. | | | 592,548 | |
| | 273,000 | | | | | Osaka Gas Co., Ltd. | | | 974,234 | |
| | 10,700 | | | | | Otsuka Corp. | | | 822,289 | |
| | 829 | | | @ | | Resona Holdings, Inc. | | | 1,593,617 | |
| | 18 | | | | | Sapporo Hokuyo Holdings, Inc. | | | 145,888 | |
| | 289 | | | | | SBI E*trade Securities Co., Ltd. | | | 268,893 | |
| | 65,600 | | | | | Seven & I Holdings Co., Ltd. | | | 1,963,832 | |
| | 66,000 | | | | | Sharp Corp. | | | 1,111,724 | |
| | 31,600 | | | | | Shin-Etsu Chemical Co., Ltd. | | | 1,956,676 | |
| | 32,300 | | | | | Shinko Electric Industries | | | 446,267 | |
| | 7,000 | | | | | Shionogi & Co., Ltd. | | | 135,194 | |
| | 57,000 | | | @ | | Sompo Japan Insurance, Inc. | | | 635,087 | |
| | 11,700 | | | | | Sony Corp. | | | 539,423 | |
| | 118,600 | | | | | Sumitomo Electric Industries Ltd. | | | 1,530,621 | |
| | 19,000 | | | | | Sumitomo Heavy Industries | | | 160,509 | |
| | 76,000 | | | | | Sumitomo Metal Mining Co., Ltd. | | | 1,381,932 | |
| | 292 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 2,512,778 | |
| | 18,000 | | | | | Suruga Bank Ltd. | | | 254,735 | |
| | 2,200 | | | | | TDK Corp. | | | 150,331 | |
| | 7,600 | | | | | THK Co., Ltd. | | | 169,015 | |
| | 13,600 | | | | | Tokai Rika Co., Ltd. | | | 333,116 | |
| | 354,000 | | | | | Tokyo Gas Co., Ltd. | | | 1,359,975 | |
| | 23,000 | | | | | Tokyu Land Corp. | | | 172,061 | |
| | 51,700 | | | | | Toyota Boshoku Corp. | | | 1,478,655 | |
| | 28,000 | | | | | Toyota Motor Corp. | | | 1,426,932 | |
| | 30 | | | | | West Japan Railway Co. | | | 130,071 | |
| | 155 | | | | | Yahoo! Japan Corp. | | | 68,751 | |
| | 92,000 | | | | | Yaskawa Electric Corp. | | | 932,814 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 55,366,555 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.2% |
| | 4,822 | | | | | Arcelor Mittal | | | 435,571 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 435,571 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 4.9% |
| | 111,824 | | | | | Aegon NV | | | 1,782,212 | |
| | 25,560 | | | | | ASML Holding NV | | | 724,306 | |
| | 27,011 | | | | | Heineken NV | | | 1,565,376 | |
| | 2,736 | | | | | Koninklijke DSM NV | | | 146,849 | |
| | 55,654 | | | | | Koninklijke Philips Electronics NV | | | 2,091,932 | |
| | 8,933 | | | | | OCE NV | | | 134,020 | |
| | 1 | | | | | Randstad Holdings NV | | | 42 | |
| | 525 | | | | | Royal Dutch Shell PLC | | | 21,042 | |
| | 55,932 | | | | | Royal Dutch Shell PLC — Class A | | | 2,248,067 | |
| | 90,868 | | | | | Royal Dutch Shell PLC — Class B | | | 3,620,751 | |
| | 4,618 | | | | | Royal KPN NV | | | 84,309 | |
| | 29,280 | | | | | Unilever NV | | | 977,449 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,396,355 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.2% |
| | 27,252 | | | | | Fletcher Building Ltd. | | | 182,438 | |
| | 40,380 | | | | | Sky Network Television Ltd. | | | 140,531 | |
| | 182,553 | | | | | Vector Ltd. | | | 294,109 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 617,078 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.4% |
| | 65,069 | | | @ | | TGS Nopec Geophysical Co. ASA | | | 1,043,075 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,043,075 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 0.2% |
| | 70,788 | | | @ | | Sonae Industria — SGPS SA | | | 493,141 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 493,141 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
183
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Singapore: 1.7% |
| | 299,000 | | | | | CapitaLand Ltd. | | $ | 1,506,960 | |
| | 76,000 | | | | | Olam International Ltd. | | | 150,962 | |
| | 329,000 | | | | | United Overseas Land Ltd. | | | 919,102 | |
| | 377,000 | | | @ | | Wilmar International Ltd. | | | 1,284,619 | |
| | 580,000 | | | | | Wing Tai Holdings Ltd. | | | 856,329 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,717,972 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 2.0% |
| | 52,195 | | | | | Banco Bilbao Vizcaya Argentaria SA | | | 1,197,100 | |
| | 71,507 | | | | | Banco Santander Central Hispano SA | | | 1,546,417 | |
| | 10,774 | | | | | Grupo Ferrovial | | | 869,415 | |
| | 19,981 | | | | | Promotora de Informaciones SA (PRISA) | | | 349,559 | |
| | 5,274 | | | | | Repsol YPF SA | | | 213,075 | |
| | 45,303 | | | | | Telefonica SA | | | 1,301,779 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,477,345 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 0.9% |
| | 64,460 | | | | | Boliden AB | | | 697,503 | |
| | 41,745 | | | | | Investor AB | | | 985,516 | |
| | 24,330 | | | | | Nobia AB | | | 158,423 | |
| | 5,000 | | | | | Nordea Bank AB | | | 82,230 | |
| | 23,209 | | | | | Tele2 AB — B Shares | | | 513,108 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,436,780 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 9.2% |
| | 61,298 | | | | | ABB Ltd. | | | 1,870,533 | |
| | 3,668 | | | | | Ciba Specialty Chemicals AG | | | 121,770 | |
| | 2,733 | | | | | Compagnie Financiere Richemont AG | | | 164,299 | |
| | 44,718 | | | | | Credit Suisse Group | | | 2,490,208 | |
| | 16,267 | | | | | Holcim Ltd. | | | 1,587,204 | |
| | 1,353 | | | | | Kuehne & Nagel International AG | | | 145,087 | |
| | 5,116 | | | @ | | Logitech International SA | | | 154,591 | |
| | 6,074 | | | | | Nestle SA | | | 2,898,987 | |
| | 73,937 | | | | | Novartis AG | | | 3,726,810 | |
| | 1,201 | | | | | Pargesa Holding SA | | | 137,341 | |
| | 21,401 | | | | | Roche Holding AG | | | 3,541,356 | |
| | 2,494 | | | | | Swatch Group AG — BR | | | 665,943 | |
| | 17,853 | | | | | Swiss Reinsurance | | | 1,476,188 | |
| | 4,339 | | | | | Synthes, Inc. | | | 593,677 | |
| | 80,464 | | | | | UBS AG — Reg | | | 2,662,729 | |
| | 13,939 | | | | | Xstrata PLC | | | 1,085,200 | |
| | 7,007 | | | | | Zurich Financial Services AG | | | 2,123,611 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 25,445,534 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 18.5% |
| | 62,423 | | | | | 3i Group PLC | | | 1,061,480 | |
| | 16,209 | | | | | Amec PLC | | | 254,445 | |
| | 10,968 | | | | | Anglo American PLC | | | 708,985 | |
| | 89,969 | | | | | ARM Holdings PLC | | | 178,600 | |
| | 62,015 | | | | | AstraZeneca PLC | | | 2,601,630 | |
| | 14,406 | | | | | Aviva PLC | | | 178,964 | |
| | 21,177 | | | | | BAE Systems PLC | | | 195,223 | |
| | 64,859 | | | | | Barclays PLC | | | 586,448 | |
| | 17,458 | | | | | Barratt Developments PLC | | | 95,230 | |
| | 21,518 | | | | | BG Group PLC | | | 525,151 | |
| | 83,368 | | | | | BHP Billiton PLC | | �� | 2,974,948 | |
| | 16,467 | | | | | Bovis Homes Group PLC | | | 151,127 | |
| | 445,888 | | | | | BP PLC | | | 5,403,153 | |
| | 113,059 | | | | | British Energy Group PLC | | | 1,687,439 | |
| | 166,404 | | | | | BT Group PLC | | | 732,509 | |
| | 508,102 | | | | | Cable & Wireless PLC | | | 1,499,225 | |
| | 54,516 | | | | | Capita Group PLC | | | 714,603 | |
| | 3,361 | | | | | Carnival PLC | | | 131,422 | |
| | 19,518 | | | | | Centrica PLC | | | 113,482 | |
| | 200,027 | | | | | Compass Group PLC | | | 1,348,428 | |
| | 21,883 | | | @ | | CSR PLC | | | 171,061 | |
| | 126,054 | | | | | Daily Mail & General Trust | | | 1,039,783 | |
| | 20,306 | | | | | Davis Service Group PLC | | | 190,943 | |
| | 96,361 | | | | | Diageo PLC | | | 1,965,343 | |
| | 54,058 | | | | | GlaxoSmithKline PLC | | | 1,195,826 | |
| | 31,891 | | | | | Group 4 Securicor PLC | | | 143,906 | |
| | 196,618 | | | | | HBOS PLC | | | 1,815,260 | |
| | 176,590 | | | | | HSBC Holdings PLC | | | 3,066,289 | |
| | 41,644 | | | | | Imperial Tobacco Group PLC | | | 1,994,296 | |
| | 104,036 | | | | | International Power PLC | | | 902,532 | |
| | 43,308 | | | | | Investec PLC | | | 305,881 | |
| | 92,369 | | | | | J Sainsbury PLC | | | 701,366 | |
| | 337,017 | | | | | Legal & General Group PLC | | | 845,065 | |
| | 19,909 | | | | | Marks & Spencer Group PLC | | | 149,380 | |
| | 6,707 | | | | | National Express Group PLC | | | 122,603 | |
| | 323,514 | | | | | Old Mutual PLC | | | 816,701 | |
| | 50,615 | | | | | Persimmon PLC | | | 578,584 | |
| | 25,048 | | | | | Reckitt Benckiser PLC | | | 1,455,505 | |
| | 50,669 | | | X | | Resolution PLC | | | 725,368 | |
| | 24,067 | | | | | Rio Tinto PLC | | | 2,805,574 | |
| | 13,012,876 | | | @ | | Rolls-Royce Group PLC — B Shares Entitlement | | | 25,874 | |
| | 374,284 | | | | | Royal Bank of Scotland Group PLC | | | 2,533,291 | |
| | 11,023 | | | | | Shire PLC | | | 202,498 | |
| | 12,657 | | | | | Smith & Nephew PLC | | | 163,634 | |
| | 19,616 | | | | | Standard Chartered PLC | | | 693,093 | |
| | 25,325 | | | | | Standard Life PLC | | | 125,091 | |
| | 21,024 | | | | | Tate & Lyle PLC | | | 220,014 | |
| | 19,428 | | | | | Tesco PLC | | | 164,547 | |
| | 42,229 | | | | | Thomas Cook Group PLC | | | 216,010 | |
| | 12,653 | | | | | Travis Perkins PLC | | | 242,262 | |
| | 674,853 | | | | | Vodafone Group PLC | | | 2,135,683 | |
| | 205,755 | | | | | WM Morrison Supermarkets PLC | | | 1,164,475 | |
| | 111,720 | | | | | Wolseley PLC | | | 1,117,222 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 51,137,452 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock | | | | |
| | | | | | | (Cost $263,705,275) | | | 262,420,824 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 0.8% |
| | | | | | | |
| | | | | | | Australia: 0.7% |
| | 1,058,298 | | | | | Macquarie Office Trust | | | 1,021,064 | |
| | 126,785 | | | | | Stockland | | | 863,552 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,884,616 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.1% |
| | 16,694 | | | | | British Land Co. PLC | | | 277,057 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 277,057 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $2,552,067) | | | 2,161,673 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.2% |
| | | | | | | |
| | | | | | | Germany: 1.2% |
| | 5,211 | | | | | Bayerische Motoren Werke AG | | | 225,299 | |
| | 32,321 | | | | | Henkel KGaA — Vorzug | | | 1,369,265 | |
| | 4,814 | | | | | Porsche AG | | | 882,841 | |
| | 43,469 | | | | | ProSieben SAT.1 Media AG | | | 671,632 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $3,881,984) | | | 3,149,037 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.1% |
| | | | | | | |
| | | | | | | Austria: 0.0% |
| | 3,540 | | | | | Vienna Insurance Group — Rights | | | 1,249 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,249 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 0.0% |
| | 29,651 | | | | | Banca Monte dei Paschi di Siena S.p.A. — Rights | | | 20,742 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,742 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
184
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Switzerland: 0.1% |
| | 82,267 | | | | | UBS AG — Reg Rights | | $ | 138,944 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 138,944 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $-) | | | 160,935 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $270,139,326)* | | | 97.2 | % | | $ | 267,892,469 | |
| | | | | Other Assets and
Liabilities - Net | | | 2.8 | | | | 7,769,561 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 275,662,030 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| STRIP | | Separate Trading of Registered Interest and Principal of Securities |
| X | | Fair Value determined by ING Funds Valuation Committee appointed by the Fund’s Board of Trustees. |
| | | |
| * | | Cost for federal income tax purposes is $276,010,898. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 6,001,903 | |
| Gross Unrealized Depreciation | | | (14,120,332 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (8,118,429 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 0.1 | % |
| Agriculture | | | 1.2 | |
| Airlines | | | 0.2 | |
| Auto Manufacturers | | | 2.2 | |
| Auto Parts & Equipment | | | 1.4 | |
| Banks | | | 14.5 | |
| Beverages | | | 1.6 | |
| Biotechnology | | | 0.2 | |
| Building Materials | | | 2.6 | |
| Chemicals | | | 1.8 | |
| Commercial Services | | | 0.4 | |
| Computers | | | 0.9 | |
| Cosmetics/Personal Care | | | 0.1 | |
| Distribution/Wholesale | | | 1.0 | |
| Diversified | | | 0.4 | |
| Diversified Financial Services | | | 2.7 | |
| Electric | | | 4.3 | |
| Electrical Components & Equipment | | | 1.6 | |
| Electronics | | | 2.0 | |
| Energy — Alternate Sources | | | 0.6 | |
| Engineering & Construction | | | 2.7 | |
| Entertainment | | | 0.1 | |
| Food | | | 3.7 | |
| Food Service | | | 0.5 | |
| Forest Products & Paper | | | 0.7 | |
| Gas | | | 0.9 | |
| Hand/Machine Tools | | | 0.1 | |
| Healthcare — Products | | | 0.3 | |
| Healthcare — Services | | | 0.2 | |
| Holding Companies — Diversified | | | 0.5 | |
| Home Builders | | | 0.3 | |
| Home Furnishings | | | 1.1 | |
| Household Products/Wares | | | 1.0 | |
| Insurance | | | 4.4 | |
| Internet | | | 0.2 | |
| Investment Companies | | | 0.7 | |
| Iron/Steel | | | 1.4 | |
| Leisure Time | | | 0.1 | |
| Machinery — Construction & Mining | | | 0.7 | |
| Machinery — Diversified | | | 0.3 | |
| Media | | | 2.1 | |
| Mining | | | 5.0 | |
| Miscellaneous Manufacturing | | | 1.9 | |
| Office Property | | | 0.4 | |
| Office/Business Equipment | | | 0.1 | |
| Oil & Gas | | | 7.8 | |
| Oil & Gas Services | | | 0.4 | |
| Pharmaceuticals | | | 5.1 | |
| Real Estate | | | 2.5 | |
| Retail | | | 1.5 | |
| Semiconductors | | | 0.6 | |
| Shipbuilding | | | 0.1 | |
| Software | | | 0.7 | |
| Telecommunications | | | 6.2 | |
| Textiles | | | 0.2 | |
| Toys/Games/Hobbies | | | 0.1 | |
| Transportation | | | 1.9 | |
| Venture Capital | | | 0.4 | |
| Water | | | 0.5 | |
| Other Assets and Liabilities — Net | | | 2.8 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
185
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 98.9% |
| | | | | | | |
| | | | | | | Australia: 5.2% |
| | 73,407 | | | | | BHP Billiton Ltd. | | $ | 2,959,167 | |
| | 22,466 | | | | | Rio Tinto Ltd. | | | 2,899,084 | |
| | 34,051 | | | | | Woodside Petroleum Ltd. | | | 1,793,308 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,651,559 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 1.6% |
| | 31,533 | | | | | Erste Bank der Oesterreichischen Sparkassen AG | | | 2,324,449 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,324,449 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 6.8% |
| | 67,845 | | | | | Banco Itau Holding Financeira SA ADR | | | 1,903,052 | |
| | 21,441 | | | | | Cia de Bebidas das Americas ADR | | | 1,571,625 | |
| | 89,034 | | | | | Cia Vale do Rio Doce ADR | | | 3,479,449 | |
| | 24,807 | | | | | Petroleo Brasileiro SA ADR | | | 3,012,066 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,966,192 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 6.2% |
| | 77,370 | | | | | Cameco Corp. | | | 2,707,176 | |
| | 62,320 | | | | | Manulife Financial Corp. | | | 2,440,451 | |
| | 32,680 | | | | | Rogers Communications, Inc. | | | 1,454,067 | |
| | 21,853 | | | | | Suncor Energy, Inc. | | | 2,462,615 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,064,309 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 2.6% |
| | 55,952 | | | @ | | Focus Media Holding Ltd. ADR | | | 2,064,069 | |
| | 1,157,000 | | | @ | | Foxconn International Holdings Ltd. | | | 1,788,281 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,852,350 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 2.5% |
| | 33,675 | | | @ | | Vestas Wind Systems A/S | | | 3,651,145 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,651,145 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 5.7% |
| | 47,941 | | | | | AXA SA | | | 1,771,311 | |
| | 21,246 | | | | | Electricite de France | | | 2,220,672 | |
| | 26,883 | | | | | Iliad SA | | | 2,844,443 | |
| | 13,500 | | | | | LVMH Moet Hennessy Louis Vuitton SA | | | 1,532,252 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,368,678 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 7.4% |
| | 36,936 | | | | | Adidas AG | | | 2,344,571 | |
| | 10,415 | | | | | Deutsche Boerse AG | | | 1,505,943 | |
| | 9,020 | | | | | E.ON AG | | | 1,833,726 | |
| | 14,352 | | | @ | | Q-Cells AG | | | 1,641,563 | |
| | 35,086 | | | | | SAP AG ADR | | | 1,762,370 | |
| | 7,194 | | | | | Wacker Chemie AG | | | 1,744,811 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,832,984 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 1.5% |
| | 38,963 | | | | | National Bank of Greece SA | | | 2,143,139 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,143,139 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 3.8% |
| | 1,844,000 | | | | | Agile Property Holdings Ltd. | | | 2,555,507 | |
| | 242,400 | | | | | Esprit Holdings Ltd. | | | 2,985,041 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,540,548 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 2.7% |
| | 18,286 | | | | | HDFC Bank Ltd. ADR | | | 2,062,661 | |
| | 43,667 | | | | | Infosys Technologies Ltd. ADR | | | 1,907,811 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,970,472 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 1.2% |
| | 38,326 | | | | | Teva Pharmaceutical Industries Ltd. ADR | | | 1,792,890 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,792,890 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 3.5% |
| | 61,630 | | | | | Saipem S.p.A. | | | 2,695,381 | |
| | 331,809 | | | | | UniCredito Italiano S.p.A. | | | 2,500,718 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,196,099 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 10.5% |
| | 50,800 | | | | | Denso Corp. | | | 1,771,911 | |
| | 93,000 | | | | | NGK Insulators Ltd. | | | 1,791,195 | |
| | 5,100 | | | | | Nintendo Co., Ltd. | | | 2,819,143 | |
| | 42,600 | | | | | Nitto Denko Corp. | | | 1,764,402 | |
| | 10,800 | | | | | ORIX Corp. | | | 1,953,806 | |
| | 26,700 | | | | | Shin-Etsu Chemical Co., Ltd. | | | 1,653,268 | |
| | 31,800 | | | | | Toyota Motor Corp. | | | 1,620,587 | |
| | 22,800 | | | @ | | Yamada Denki Co., Ltd. | | | 1,957,475 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,331,787 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 1.8% |
| | 25,071 | | | @ | | Millicom International Cellular SA | | | 2,707,919 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,707,919 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.1% |
| | 39,889 | | | | | Wal-Mart de Mexico SA de CV ADR | | | 1,601,974 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,601,974 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 1.2% |
| | 46,802 | | | | | Koninklijke Philips Electronics
NV — NY Shares | | | 1,757,883 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,757,883 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 1.7% |
| | 72,092 | | | @ | | Renewable Energy Corp. A/S | | | 2,439,396 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,439,396 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 2.0% |
| | 191,000 | | | | | Keppel Corp., Ltd. | | | 1,462,132 | |
| | 346,000 | | | | | Keppel Land Ltd. | | | 1,553,524 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,015,656 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 1.2% |
| | 89,751 | | | | | MTN Group Ltd. | | | 1,705,621 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,705,621 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.7% |
| | 6,927 | | | # | | Samsung Electronics GDR | | | 2,456,040 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,456,040 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 5.2% |
| | 110,747 | | | | | Banco Bilbao Vizcaya Argentaria SA | | | 2,539,999 | |
| | 129,215 | | | | | Banco Santander Central Hispano SA | | | 2,794,416 | |
| | 78,383 | | | | | Telefonica SA | | | 2,252,331 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,586,746 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 10.1% |
| | 73,622 | | | | | ABB Ltd. | | | 2,246,604 | |
| | 38,446 | | | | | Credit Suisse Group | | | 2,140,939 | |
| | 18,290 | | | | | Holcim Ltd. | | | 1,784,592 | |
| | 4,420 | | | | | Nestle SA | | | 2,109,569 | |
| | 38,090 | | | | | Nobel Biocare Holding AG | | | 1,370,649 | |
| | 30,700 | | | | | Novartis AG | | | 1,547,440 | |
| | 13,315 | | | | | Roche Holding AG | | | 2,203,315 | |
| | 4,904 | | | | | Syngenta AG | | | 1,457,494 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,860,602 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 11.7% |
| | 833,382 | | | | | ARM Holdings PLC | | | 1,654,373 | |
| | 149,489 | | | @ | | Autonomy Corp. PLC | | | 2,521,870 | |
| | 159,333 | | | | | British Sky Broadcasting PLC | | | 1,717,255 | |
| | 126,424 | | | | | ICAP PLC | | | 1,459,499 | |
| | 323,876 | | | | | Michael Page International PLC | | | 1,843,439 | |
| | 186,851 | | | | | Prudential PLC | | | 2,538,013 | |
| | 135,961 | | | | | Smith & Nephew PLC | | | 1,757,754 | |
See Accompanying Notes to Financial Statements
186
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 184,034 | | | | | Tesco PLC | | $ | 1,558,687 | |
| | 83,282 | | | @ | | Wellstream Holdings PLC | | | 2,073,053 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 17,123,943 | |
| | | | | | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $133,066,292)* | | | 98.9 | % | | $ | 144,942,381 | |
| | | | | Other Assets and
Liabilities - Net | | | 1.1 | | | | 1,541,842 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 146,484,223 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| # | | 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. |
| | | |
| * | | Cost for federal income tax purposes is $134,810,461. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 16,690,797 | |
| Gross Unrealized Depreciation | | | (6,558,877 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 10,131,920 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 1.4 | % |
| Apparel | | | 3.6 | |
| Auto Manufacturers | | | 1.1 | |
| Auto Parts & Equipment | | | 1.2 | |
| Banks | | | 11.1 | |
| Beverages | | | 1.1 | |
| Building Materials | | | 1.2 | |
| Chemicals | | | 4.5 | |
| Commercial Services | | | 1.3 | |
| Diversified Financial Services | | | 4.8 | |
| Electric | | | 2.8 | |
| Electronics | | | 2.4 | |
| Energy — Alternate Sources | | | 5.3 | |
| Engineering & Construction | | | 1.5 | |
| Food | | | 2.5 | |
| Healthcare — Products | | | 2.1 | |
| Holding Companies — Diversified | | | 2.1 | |
| Insurance | | | 4.6 | |
| Internet | | | 1.9 | |
| Media | | | 1.2 | |
| Mining | | | 8.2 | |
| Oil & Gas | | | 5.0 | |
| Oil & Gas Services | | | 3.3 | |
| Pharmaceuticals | | | 3.8 | |
| Real Estate | | | 2.8 | |
| Retail | | | 2.4 | |
| Semiconductors | | | 2.8 | |
| Software | | | 4.2 | |
| Telecommunications | | | 6.8 | |
| Toys/Games/Hobbies | | | 1.9 | |
| Other Assets and Liabilities — Net | | | 1.1 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
187
PORTFOLIO OF INVESTMENTS
ING International Equity Dividend Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 92.6% |
| | | | | | | |
| | | | | | | Australia: 7.1% |
| | 26,564 | | | | | Australia & New Zealand Banking Group Ltd. | | $ | 548,403 | |
| | 40,826 | | | | | Crown Ltd. | | | 422,558 | |
| | 126,939 | | | | | Foster’s Group Ltd. | | | 605,997 | |
| | 145,266 | | | | | Insurance Australia Group | | | 595,248 | |
| | 36,795 | | | | | Suncorp-Metway Ltd. | | | 473,244 | |
| | 37,456 | | | | | TABCORP Holdings Ltd. | | | 401,983 | |
| | 21,372 | | | | | Wesfarmers Ltd. | | | 748,096 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,795,529 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 4.1% |
| | 11,191 | | | | | Belgacom SA | | | 513,857 | |
| | 15,132 | | | | | Elia System Operator SA | | | 673,605 | |
| | 37,057 | | | | | Fortis | | | 1,005,461 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,192,923 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.9% |
| | 94,970 | | | | | Hiscox Ltd. | | | 479,656 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 479,656 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 0.6% |
| | 13,605 | | | | | Tele Norte Leste Participacoes SA ADR | | | 311,691 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 311,691 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 5.4% |
| | 18,551 | | | | | Bell Aliant Regional Communications Income Fund | | | 554,449 | |
| | 18,191 | | | | | Enerplus Resources Fund | | | 816,776 | |
| | 36,120 | | | | | Precision Drilling Trust | | | 903,807 | |
| | 16,526 | | | | | TransCanada Corp. | | | 605,510 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,880,542 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 1.5% |
| | 22,815 | | | | | Danske Bank A/S | | | 785,478 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 785,478 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.2% |
| | 34,393 | | | | | UPM-Kymmene OYJ | | | 659,585 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 659,585 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 8.4% |
| | 7,878 | | | | | BNP Paribas | | | 839,833 | |
| | 15,573 | | | | | France Telecom SA | | | 487,294 | |
| | 10,903 | | | | | Sanofi-Aventis | | | 840,416 | |
| | 11,899 | | | | | Total SA | | | 996,733 | |
| | 7,360 | | | | | Vinci SA | | | 539,925 | |
| | 19,916 | | | | | Vivendi | | | 802,963 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,507,164 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 1.6% |
| | 4,835 | | | | | Bayerische Motoren Werke AG | | | 263,064 | |
| | 3,000 | | | | | E.ON AG | | | 609,887 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 872,951 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 1.4% |
| | 19,344 | | | | | OPAP SA | | | 752,511 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 752,511 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.8% |
| | 54,500 | | | | | CLP Holdings Ltd. | | | 432,413 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 432,413 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hungary: 0.7% |
| | 13,473 | | | | | Magyar Telekom Telecommunications PLC ADR | | | 360,268 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 360,268 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 2.3% |
| | 34,354 | | | | | Allied Irish Banks PLC | | | 717,598 | |
| | 33,918 | | | | | Irish Life & Permanent PLC | | | 543,044 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,260,642 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 0.8% |
| | 95,814 | | | | | Bank Hapoalim BM | | | 405,960 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 405,960 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 11.2% |
| | 85,484 | | | | | Enel S.p.A. | | | 927,513 | |
| | 27,569 | | | | | ENI S.p.A. | | | 1,061,088 | |
| | 111,623 | | | | | Intesa Sanpaolo S.p.A. | | | 829,793 | |
| | 23,122 | | | | | Italcementi S.p.A. RNC | | | 367,647 | |
| | 69,197 | | | | | Mediaset S.p.A. | | | 628,844 | |
| | 72,382 | | | | | Milano Assicurazioni S.p.A. | | | 472,496 | |
| | 8,287 | | | | | Pirelli & C Real Estate S.p.A. | | | 248,596 | |
| | 306,109 | | | | | Telecom Italia S.p.A. RNC | | | 498,311 | |
| | 132,161 | | | | | UniCredito Italiano S.p.A. | | | 996,047 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,030,335 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.0% |
| | 26,409 | | | | | Royal Dutch Shell PLC | | | 1,058,489 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,058,489 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.7% |
| | 137,286 | | | | | Telecom Corp. of New Zealand Ltd. | | | 404,932 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 404,932 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 1.3% |
| | 48,190 | | | | | DnB NOR ASA | | | 715,393 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 715,393 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Poland: 0.8% |
| | 45,744 | | | | | Telekomunikacja Polska SA | | | 459,615 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 459,615 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 0.9% |
| | 33,000 | | | | | DBS Group Holdings Ltd. | | | 482,821 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 482,821 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.5% |
| | 13,296 | | | | | KT Corp. ADR | | | 307,404 | |
| | 7,060 | | | | | S-Oil Corp. | | | 475,210 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 782,614 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 4.9% |
| | 39,598 | | | | | Banco Bilbao Vizcaya Argentaria SA | | | 908,186 | |
| | 27,650 | | | | | Banco Santander Central Hispano SA | | | 597,962 | |
| | 29,168 | | | | | Gestevision Telecinco SA | | | 609,659 | |
| | 17,735 | | | | | Telefonica SA | | | 509,614 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,625,421 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 4.2% |
| | 39,797 | | | | | Svenska Cellulosa AB — B Shares | | | 666,215 | |
| | 25,587 | | | | | Swedbank AB | | | 643,609 | |
| | 166,563 | | | | | Telefonaktiebolaget LM Ericsson | | | 420,736 | |
| | 61,820 | | | | | TeliaSonera AB | | | 549,282 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,279,842 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.1% |
| | 52,181 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 586,514 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 586,514 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 1.0% |
| | 80,500 | | | | | Siam Cement PCL | | | 547,843 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 547,843 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
188
PORTFOLIO OF INVESTMENTS
ING International Equity Dividend Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | United Kingdom: 26.2% |
| | 21,932 | | | | | AstraZeneca PLC | | $ | 920,083 | |
| | 53,054 | | | | | Aviva PLC | | | 659,083 | |
| | 81,679 | | | | | Barclays PLC | | | 738,533 | |
| | 75,020 | | | | | BBA Aviation PLC | | | 232,917 | |
| | 82,089 | | | | | BP PLC | | | 994,732 | |
| | 15,043 | | | | | British American Tobacco PLC | | | 564,296 | |
| | 132,241 | | | | | BT Group PLC | | | 582,124 | |
| | 83,571 | | | | | Cattles PLC | | | 394,946 | |
| | 15,030 | | | | | Diageo PLC | | | 306,546 | |
| | 341,893 | | | | | DSG International PLC | | | 441,056 | |
| | 38,666 | | | | | GlaxoSmithKline PLC | | | 855,337 | |
| | 51,294 | | | | | HSBC Holdings PLC | | | 890,663 | |
| | 242,882 | | | | | Legal & General Group PLC | | | 609,023 | |
| | 93,831 | | | | | Lloyds TSB Group PLC | | | 800,195 | |
| | 36,061 | | | | | Marks & Spencer Group PLC | | | 270,570 | |
| | 88,104 | | | | | Rexam PLC | | | 779,952 | |
| | 132,348 | | | | | Royal Bank of Scotland Group PLC | | | 895,780 | |
| | 25,769 | | | | | Scottish & Southern Energy PLC | | | 710,121 | |
| | 27,984 | | | | | Severn Trent PLC | | | 808,117 | |
| | 81,722 | | | | | Tate & Lyle PLC | | | 855,211 | |
| | 55,232 | | | | | United Utilities PLC | | | 783,541 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,092,826 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $53,026,050) | | | 49,763,958 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 2.7% |
| | | | | | | |
| | | | | | | Australia: 1.3% |
| | 67,285 | | | | | Stockland | | | 458,288 | |
| | 15,743 | | | | | Westfield Group | | | 270,529 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 728,817 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.7% |
| | 19,148 | | | @ | | Alstria Office AG | | | 365,910 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 365,910 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.7% |
| | 3,982 | | | | | Corio NV | | | 370,118 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 370,118 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $1,428,401) | | | 1,464,845 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $54,454,451)* | | | 95.3 | % | | $ | 51,228,803 | |
| | | | | Other Assets and
Liabilities - Net | | | 4.7 | | | | 2,551,998 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 53,780,801 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| | | |
| * | | Cost for federal income tax purposes is $55,056,136. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 943,927 | |
| Gross Unrealized Depreciation | | | (4,771,260 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (3,827,333 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 0.4 | % |
| Agriculture | | | 1.1 | |
| Auto Manufacturers | | | 0.5 | |
| Banks | | | 24.7 | |
| Beverages | | | 1.7 | |
| Building Materials | | | 1.7 | |
| Diversified | | | 1.5 | |
| Diversified Financial Services | | | 1.7 | |
| Electric | | | 6.2 | |
| Engineering & Construction | | | 1.0 | |
| Entertainment | | | 2.1 | |
| Food | | | 1.6 | |
| Forest Products & Paper | | | 2.5 | |
| Insurance | | | 5.2 | |
| Lodging | | | 0.8 | |
| Media | | | 3.8 | |
| Miscellaneous Manufacturing | | | 1.4 | |
| Office Property | | | 0.7 | |
| Oil & Gas | | | 11.7 | |
| Packaging & Containers | | | 1.5 | |
| Pharmaceuticals | | | 4.9 | |
| Pipelines | | | 1.1 | |
| Real Estate | | | 0.5 | |
| Retail | | | 1.3 | |
| Semiconductors | | | 1.1 | |
| Shopping Centers | | | 0.5 | |
| Telecommunications | | | 11.1 | |
| Water | | | 3.0 | |
| Other Assets and Liabilities — Net | | | 4.7 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
189
PORTFOLIO OF INVESTMENTS
ING International Growth Opportunities Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 97.0% |
| | | | | | | |
| | | | | | | Belgium: 2.2% |
| | 33,075 | | | | | InBev NV | | $ | 2,711,037 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,711,037 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 2.6% |
| | 181,700 | | | | | Cosan SA Industria e Comercio | | | 3,199,590 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,199,590 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 4.2% |
| | 43,800 | | | | | Barrick Gold Corp. | | | 1,691,556 | |
| | 26,100 | | | | | EnCana Corp. | | | 2,105,675 | |
| | 103,278 | | | @,L | | Silver Wheaton Corp. | | | 1,370,499 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,167,730 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 4.2% |
| | 61,348 | | | L | | Aluminum Corp. of China Ltd. ADR | | | 2,626,921 | |
| | 719,000 | | | | | Hengan International Group Co., Ltd. | | | 2,566,345 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,193,266 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 6.4% |
| | 150,350 | | | | | Nokia OYJ | | | 4,520,165 | |
| | 55,432 | | | | | Outotec OYJ | | | 3,453,016 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,973,181 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 3.5% |
| | 70,994 | | | @ | | Eutelsat Communications | | | 2,086,415 | |
| | 17,844 | | | | | PPR | | | 2,307,088 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,393,503 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 8.7% |
| | 13,165 | | | | | Allianz AG | | | 2,668,701 | |
| | 37,163 | | | | | Bayer AG | | | 3,138,736 | |
| | 29,109 | | | | | DaimlerChrysler AG | | | 2,260,696 | |
| | 75,495 | | | | | GEA Group AG | | | 2,784,251 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,852,384 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 1.8% |
| | 40,632 | | | | | National Bank of Greece SA | | | 2,234,941 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,234,941 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 4.8% |
| | 862,000 | | | | | Li & Fung Ltd. | | | 3,556,204 | |
| | 906,000 | | | | | New World Development Ltd. | | | 2,341,373 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,897,577 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 1.6% |
| | 91,115 | | | @ | | Bharti Airtel Ltd. | | | 2,027,508 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,027,508 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 4.3% |
| | 213,498 | | | | | Enel S.p.A. | | | 2,316,482 | |
| | 125,465 | | | | | Prysmian S.p.A. | | | 2,957,956 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,274,438 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 5.3% |
| | 457 | | | @ | | Mizuho Financial Group, Inc. | | | 2,378,296 | |
| | 7,500 | | | | | Nintendo Co., Ltd. | | | 4,145,798 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,524,094 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.6% |
| | 1,883,800 | | | | | Consorcio ARA, S.A. de C.V. | | | 1,975,622 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,975,622 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.4% |
| | 159,900 | | | | | Royal KPN NV | | | 2,919,233 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,919,233 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 3.2% |
| | 47,964 | | | L | | OAO Gazprom ADR | | | 2,537,856 | |
| | 15,308 | | | @,L | | Unified Energy System ADR | | | 1,458,852 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,996,708 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 1.8% |
| | 34,538 | | | | | Hyundai Development Co. | | | 2,204,909 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,204,909 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 8.8% |
| | 12,393 | | | | | Nestle SA | | | 5,914,908 | |
| | 64,570 | | | | | Xstrata PLC | | | 5,027,003 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,941,911 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 3.3% |
| | 422,280 | | | | | HON HAI Precision Industry Co., Ltd. | | | 2,440,427 | |
| | 639,000 | | | | | Synnex Technology International Corp. | | | 1,705,692 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,146,119 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 1.8% |
| | 161,819 | | | | | Enka Insaat Ve Sanayi A/S | | | 2,203,248 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,203,248 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 20.2% |
| | 82,918 | | | | | Anglo American PLC | | | 5,359,922 | |
| | 1,310,718 | | | | | ARM Holdings PLC | | | 2,601,947 | |
| | 604,223 | | | | | Game Group PLC | | | 3,282,468 | |
| | 1,119,004 | | | | | Hays PLC | | | 2,489,195 | |
| | 64,608 | | | | | Imperial Tobacco Group PLC | | | 3,094,023 | |
| | 211,153 | | | | | Inmarsat PLC | | | 1,928,575 | |
| | 360,126 | | | | �� | International Power PLC | | | 3,124,162 | |
| | 55,810 | | | | | Reckitt Benckiser PLC | | | 3,243,044 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 25,123,336 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 4.3% |
| | 73,600 | | | | | Alcoa, Inc. | | | 2,559,808 | |
| | 64,261 | | | @,L | | NRG Energy, Inc. | | | 2,824,271 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,384,079 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $112,048,166) | | | 120,344,414 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 0.8% |
| | | | | | | |
| | | | | | | Russia: 0.8% |
| | 609,051 | | | | | TNK-BP Holding | | | 1,023,206 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $1,769,776) | | | 1,023,206 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $113,817,942) | | | 121,367,620 | |
| | | | | | | | | | | |
| |
SHORT-TERM INVESTMENTS: 7.6% |
| | | | | | | |
| | | | | | | Mutual Fund: 1.5% |
| | 1,925,000 | | | ** | | ING Institutional Prime Money Market Fund | | | 1,925,000 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $1,925,000) | | | 1,925,000 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
190
PORTFOLIO OF INVESTMENTS
ING International Growth Opportunities Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Repurchase Agreement: 0.5% |
| $ | 613,000 | | | | | Morgan Stanley Repurchase Agreement dated 04/30/08, 1.970%, due 05/01/08, $613,034 to be received upon repurchase (Collateralized by $595,000 Federal Home Loan Mortgage Corporation, 6.625%, Market Value plus accrued interest $629,118, due 09/15/09) | | | | | | $ | 613,000 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Repurchase Agreement
(Cost $613,000) | | | 613,000 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 5.6% |
| | 6,906,030 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | | 6,906,030 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $6,906,030) | | | 6,906,030 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $9,444,030) | | | 9,444,030 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities
(Cost $123,261,972)* | | | 105.4 | % | | $ | 130,811,650 | |
| | | | | Other Assets and
Liabilities - Net | | | (5.4 | ) | | | (6,666,157 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 124,145,493 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| ** | | Investment in affiliate |
| | | |
| * | | Cost for federal income tax purposes is $123,639,704. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 11,866,896 | |
| Gross Unrealized Depreciation | | | (4,694,950 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 7,171,946 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Agriculture | | | 2.5 | % |
| Auto Manufacturers | | | 1.8 | |
| Banks | | | 3.7 | |
| Beverages | | | 2.2 | |
| Chemicals | | | 2.5 | |
| Commercial Services | | | 2.0 | |
| Distribution/Wholesale | | | 2.9 | |
| Electric | | | 7.8 | |
| Electrical Components & Equipment | | | 2.4 | |
| Electronics | | | 3.3 | |
| Engineering & Construction | | | 1.8 | |
| Food | | | 7.3 | |
| Healthcare — Products | | | 2.1 | |
| Holding Companies — Diversified | | | 2.3 | |
| Home Builders | | | 3.4 | |
| Household Products/Wares | | | 2.6 | |
| Insurance | | | 2.2 | |
| Machinery — Construction & Mining | | | 2.8 | |
| Mining | | | 15.0 | |
| Oil & Gas | | | 4.5 | |
| Real Estate | | | 1.9 | |
| Retail | | | 4.5 | |
| Semiconductors | | | 2.1 | |
| Telecommunications | | | 10.9 | |
| Toys/Games/Hobbies | | | 3.3 | |
| Short-Term Investments | | | 7.6 | |
| Other Assets and Liabilities — Net | | | (5.4 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
191
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 43.8% |
| | | | | | | |
| | | | | | | Australia: 0.9% |
| | 487,100 | | | | | Lend Lease Corp., Ltd. | | $ | 5,700,322 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,700,322 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 0.3% |
| | 11,940 | | | @ | | CA Immobilien Anlagen AG | | | 277,629 | |
| | 129,650 | | | @ | | Meinl European Land Ltd. | | | 1,690,767 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,968,396 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 1.7% |
| | 611,900 | | | @ | | BR Malls Participacoes SA | | | 6,626,278 | |
| | 407,700 | | | @ | | Construtora Tenda SA | | | 2,158,441 | |
| | 136,700 | | | | | Mrv Engenharia | | | 2,755,054 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,539,773 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 0.6% |
| | 190,250 | | | | | Brookfield Properties Co. (U.S. Denominated Security) | | | 3,829,733 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,829,733 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.3% |
| | 1,527,728 | | | | | Citycon OYJ | | | 8,869,009 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,869,009 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.1% |
| | 10,580 | | | | | Deutsche Euroshop AG | | | 449,160 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 449,160 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 19.4% |
| | 2,526,100 | | | | | Cheung Kong Holdings Ltd. | | | 39,456,192 | |
| | 1,674,900 | | | | | Hang Lung Group Ltd. | | | 9,013,676 | |
| | 1,998,600 | | | | | Hang Lung Properties Ltd. | | | 8,113,961 | |
| | 1,219,100 | | | | | Hongkong Land Holdings Ltd. | | | 5,534,102 | |
| | 1,489,500 | | | | | Kerry Properties Ltd. | | | 10,084,663 | |
| | 2,609,400 | | | | | Shui On Land Ltd. | | | 2,593,335 | |
| | 3,299,700 | | | | | Sino Land Co. | | | 8,320,960 | |
| | 2,306,000 | | | | | Sun Hung Kai Properties Ltd. | | | 40,300,901 | |
| | 1,003,750 | | | | | Wharf Holdings Ltd. | | | 5,076,154 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 128,493,944 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 0.5% |
| | 406,800 | | | @ | | Unitech Ltd. (Global Instrument, Issuer: Macquarie Group Ltd.) | | | 3,112,153 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,112,153 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 14.7% |
| | 1,591,300 | | | | | Mitsubishi Estate Co., Ltd. | | | 46,278,007 | |
| | 1,475,900 | | | | | Mitsui Fudosan Co., Ltd. | | | 37,295,878 | |
| | 1,975 | | | | | NTT Urban Development Corp. | | | 3,064,233 | |
| | 424,600 | | | | | Sumitomo Realty & Development Co., Ltd. | | | 10,642,999 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 97,281,117 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Philippines: 0.2% |
| | 6,527,200 | | | | | Ayala Land, Inc. | | | 1,501,046 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,501,046 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 1.6% |
| | 2,090,600 | | | | | CapitaLand Ltd. | | | 10,536,627 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,536,627 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 0.6% |
| | 440,320 | | | | | Hufvudstaden AB | | | 4,330,865 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,330,865 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 0.9% |
| | 95,600 | | | @ | | PSP Swiss Property AG | | | 5,918,909 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,918,909 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Thailand: 0.3% |
| | 1,929,000 | | | | | Central Pattana PCL | | | 1,748,443 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,748,443 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 0.7% |
| | 23,000 | | | @ | | Hirco PLC | | | 157,086 | |
| | 598,900 | | | @ | | Ishaan Real Estate PLC | | | 1,095,368 | |
| | 752,200 | | | | | Safestore Holdings Ltd. | | | 2,165,241 | |
| | 90,700 | | | @ | | Yatra Capital Ltd. | | | 1,210,882 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,628,577 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $267,594,033) | | | 289,908,074 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 52.5% |
| | | | | | | |
| | | | | | | Australia: 14.9% |
| | 1,509,700 | | | | | Australand Property Group | | | 2,341,583 | |
| | 3,696,300 | | | | | CFS Retail Property Trust | | | 7,785,931 | |
| | 2,793,700 | | | | | Challenger Diversified Property Group | | | 2,060,413 | |
| | 1,548,100 | | | | | Charter Hall Group | | | 2,110,670 | |
| | 1,343,500 | | | | | Commonwealth Property Office Fund | | | 1,775,840 | |
| | 1,135,700 | | | | | DB Rreef Trust | | | 1,879,673 | |
| | 2,123,900 | | | | | GPT Group | | | 6,672,582 | |
| | 1,718,300 | | | | | Macquarie CountryWide Trust | | | 2,250,215 | |
| | 1,930,900 | | | | | Macquarie Goodman Group | | | 8,200,495 | |
| | 1,039,700 | | | | | Mirvac Group | | | 4,108,244 | |
| | 2,374,200 | | | | | Stockland | | | 16,171,035 | |
| | 688,800 | | | | | Valad Property Group | | | 614,190 | |
| | 2,478,839 | | | | | Westfield Group | | | 42,596,594 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 98,567,465 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 2.9% |
| | 6,600 | | | @,# | | Calloway Real Estate Investment Trust | | | 138,737 | |
| | 69,200 | | | | | Calloway Real Estate Investment Trust | | | 1,454,636 | |
| | 116,700 | | | | | Canadian Real Estate Investment Trust | | | 3,198,213 | |
| | 242,500 | | | | | Cominar Real Estate Investment Trust | | | 4,948,242 | |
| | 445,600 | | | | | RioCan Real Estate Investment Trust | | | 9,278,356 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,018,184 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 9.1% |
| | 21,300 | | | | | Gecina SA | | | 2,997,853 | |
| | 83,200 | | | | | Klepierre | | | 5,031,424 | |
| | 106,451 | | | | | Mercialys | | | 4,942,349 | |
| | 22,659 | | | | | Societe Immobiliere de Location pour l’Industrie et le Commerce | | | 3,229,189 | |
| | 170,802 | | | | | Unibail | | | 43,866,169 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 60,066,984 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.2% |
| | 70,700 | | | @ | | Alstria Office AG | | | 1,351,045 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,351,045 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 1.4% |
| | 3,769,700 | | | | | Link Real Estate Investment Trust | | | 9,024,882 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,024,882 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 5.8% |
| | 263 | | | | | Japan Hotel and Resort, Inc. | | | 876,918 | |
| | 472 | | | | | Japan Logistics Fund, Inc. | | | 3,213,906 | |
| | 867 | | | | | Japan Real Estate Investment Corp. | | | 10,277,498 | |
| | 367 | | | | | Japan Retail Fund Investment Corp. | | | 2,173,406 | |
| | 937 | | | | | Kenedix Realty Investment Corp. | | | 5,545,781 | |
See Accompanying Notes to Financial Statements
192
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Japan (continued) |
| | 207 | | | | | Nippon Accommodations Fund, Inc. | | $ | 996,774 | |
| | 806 | | | | | Nippon Building Fund, Inc. | | | 10,579,635 | |
| | 152 | | | | | Nomura Real Estate Residential Fund, Inc. | | | 657,492 | |
| | 524 | | | | | Tokyu Real Estate Investment Trust, Inc. | | | 4,412,282 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 38,733,692 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 3.5% |
| | 133,650 | | | | | Corio NV | | | 12,422,485 | |
| | 110,170 | | | | | Eurocommercial Properties NV | | | 6,316,681 | |
| | 38,200 | | | | | Wereldhave NV | | | 4,831,007 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 23,570,173 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 2.9% |
| | 2,534,400 | | | @ | | Ascendas Real Estate Investment Trust | | | 4,838,174 | |
| | 2,423,300 | | | @ | | CapitaCommercial Trust | | | 4,012,851 | |
| | 2,487,200 | | | @ | | CapitaMall Trust | | | 6,401,116 | |
| | 4,491,800 | | | @ | | Macquarie MEAG Prime Real Estate Investment Trust | | | 4,107,053 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,359,194 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 11.8% |
| | 605,900 | | | | | British Land Co. PLC | | | 10,055,653 | |
| | 299,800 | | | | | Brixton PLC | | | 1,766,046 | |
| | 291,200 | | | | | Derwent Valley Holdings PLC | | | 7,707,318 | |
| | 256,100 | | | | | Great Portland Estates PLC | | | 2,318,276 | |
| | 621,700 | | | | | Hammerson PLC | | | 12,377,768 | |
| | 888,880 | | | | | Land Securities Group PLC | | | 27,030,048 | |
| | 150,000 | | | | | Liberty International PLC | | | 2,902,771 | |
| | 837,600 | | | | | Segro PLC | | | 7,627,065 | |
| | 576,600 | | | | | Shaftesbury PLC | | | 6,130,385 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 77,915,330 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $358,029,469) | | | 347,606,949 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 1.1% |
| | | | | | | |
| | | | | | | Australia: 0.5% |
| | 1,567,500 | | | ** | | ING Industrial Fund | | | 3,080,031 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,080,031 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Luxembourg: 0.6% |
| | 246,410 | | | | | Prologis European Properties | | | 4,001,474 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,001,474 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $7,172,671) | | | 7,081,505 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $632,796,173) | | | 644,596,528 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 3.3% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 3.3% |
| | $21,653,000 | | | Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 21,652,068 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $21,652,068) | | | 21,652,068 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $654,448,241)* | | | 100.7 | % | | $ | 666,248,596 | |
| | | | | Other Assets and
Liabilities - Net | | | (0.7 | ) | | | (4,597,500 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 661,651,096 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| # | | 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. |
| ** | | Investment in affiliate |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $687,358,036. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 8,968,931 | |
| Gross Unrealized Depreciation | | | (30,078,371 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (21,109,440 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Apartments | | | 0.1 | % |
| Closed-End Funds | | | 1.1 | |
| Diversified | | | 32.6 | |
| Engineering & Construction | | | 0.5 | |
| Holding Companies — Diversified | | | 0.8 | |
| Home Builders | | | 0.4 | |
| Hotels | | | 0.1 | |
| Office Property | | | 6.3 | |
| Real Estate | | | 41.8 | |
| Shopping Centers | | | 12.9 | |
| Storage/Warehousing | | | 0.3 | |
| Warehouse/Industrial | | | 0.5 | |
| Short-Term Investments | | | 3.3 | |
| Other Assets and Liabilities — Net | | | (0.7 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
At April 30, 2008 the following forward foreign currency contracts were outstanding for the ING International Real Estate Fund:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | |
| | | | | Settlement
| | Exchange
| | | | Unrealized
|
Currency | | Buy/Sell | | Date | | For | | Value | | Appreciation |
| | | | | | | USD | | | | |
Japanese Yen
JPY 519,960,381 | | | Buy | | | | 05/07/08 | | | | 4,981,704 | | | | 5,002,598 | | | $ | 20,894 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 20,894 | |
| | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
193
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 95.6% |
| | | | | | | |
| | | | | | | Argentina: 0.0% |
| | 20,900 | | | @ | | Telecom Argentina SA ADR | | $ | 367,004 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 367,004 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Australia: 7.2% |
| | 582,625 | | | @ | | Aditya Birla Minerals Ltd. | | | 1,597,752 | |
| | 95,450 | | | | | Ansell Ltd. | | | 1,033,012 | |
| | 12,207 | | | @ | | Aquila Resources Ltd. | | | 173,942 | |
| | 350,933 | | | @,I | | Atlas Iron Ltd. | | | 1,019,306 | |
| | 15,100 | | | | | Ausenco Ltd. | | | 225,319 | |
| | 2,399,469 | | | @ | | Australian Worldwide Exploration Ltd. | | | 8,262,633 | |
| | 225,105 | | | @ | | Babcock & Brown Capital Ltd. | | | 880,318 | |
| | 37,263 | | | | | Bendigo Bank Ltd. | | | 428,603 | |
| | 188,766 | | | | | Boart Longyear Group | | | 337,289 | |
| | 125,735 | | | | | Bradken Ltd. | | | 979,336 | |
| | 1,434,629 | | | | | Centennial Coal Co., Ltd. | | | 6,149,378 | |
| | 279,766 | | | | | Challenger Financial Services Group Ltd. | | | 549,951 | |
| | 135,948 | | | | | Computershare Ltd. | | | 1,141,940 | |
| | 186,884 | | | @ | | Cooper Energy Ltd. | | | 86,806 | |
| | 77,177 | | | | | Downer EDI Ltd. | | | 530,755 | |
| | 135,732 | | | @ | | Energy World Corp., Ltd. | | | 178,622 | |
| | 132,420 | | | | | Flight Centre Ltd. | | | 2,717,180 | |
| | 308,487 | | | | | Futuris Corp., Ltd. | | | 616,143 | |
| | 66,902 | | | | | G.U.D. Holdings Ltd. | | | 617,257 | |
| | 83,513 | | | | | Iluka Resources Ltd. | | | 312,084 | |
| | 20,174 | | | | | Incitec Pivot Ltd. | | | 3,068,818 | |
| | 244,590 | | | | | Independence Group NL | | | 1,921,372 | |
| | 200,875 | | | | | JB Hi-Fi Ltd. | | | 1,718,150 | |
| | 409,579 | | | | | Just Group Ltd. | | | 1,539,230 | |
| | 772,480 | | | | | Mincor Resources NL | | | 2,565,535 | |
| | 426,428 | | | @ | | Mount Gibson Iron Ltd. | | | 1,176,484 | |
| | 673,856 | | | I,X | | Octaviar Ltd. | | | 629,427 | |
| | 94,200 | | | | | OneSteel Ltd. | | | 569,360 | |
| | 1,257,500 | | | @ | | Pan Australian Resources Ltd. | | | 1,411,611 | |
| | 69,764 | | | @ | | Platinum Australia Ltd. | | | 153,839 | |
| | 248,567 | | | | | Ramsay Health Care Ltd. | | | 2,789,001 | |
| | 96,702 | | | @ | | Riversdale Mining Ltd. | | | 731,444 | |
| | 855,454 | | | | | Sally Malay Mining Ltd. | | | 4,364,315 | |
| | 716,459 | | | | | Seven Network Ltd. | | | 6,265,732 | |
| | 161,433 | | | | | Sigma Pharmaceuticals Ltd. | | | 179,991 | |
| | 44,621 | | | | | Sims Group Ltd. | | | 1,391,871 | |
| | 19,613 | | | | | Sonic Healthcare Ltd. | | | 281,811 | |
| | 151,200 | | | | | Straits Resources Ltd. | | | 982,108 | |
| | 439,241 | | | | | Sunland Group Ltd. | | | 1,182,662 | |
| | 399,036 | | | @ | | Tap Oil Ltd. | | | 637,527 | |
| | 97,882 | | | | | Transfield Services Ltd. | | | 1,180,713 | |
| | 26,800 | | | | | WorleyParsons Ltd. | | | 979,997 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 63,558,624 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Austria: 0.4% |
| | 319,071 | | | @ | | Austrian Airlines | | | 1,847,726 | |
| | 10,721 | | | @ | | Ca Immo International AA | | | 168,380 | |
| | 5,267 | | | @ | | Kapsch TrafficCom AG | | | 286,754 | |
| | 4,915 | | | | | Rosenbauer International AG | | | 229,513 | |
| | 1,535 | | | | | Schoeller-Bleckmann Oilfield Equipment AG | | | 133,563 | |
| | 22,338 | | | | | Zumtobel AG | | | 679,405 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,345,341 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 0.5% |
| | 4,005 | | | | | Bekaert SA | | | 602,147 | |
| | 6,545 | | | | | D’ieteren SA | | | 2,016,636 | |
| | 39,700 | | | @ | | Telenet Group Holding NV | | | 956,885 | |
| | 14,422 | | | | | Tessenderlo Chemie NV | | | 676,425 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,252,093 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bermuda: 0.7% |
| | 284,837 | | | | | Catlin Group Ltd. | | | 2,202,099 | |
| | 457,770 | | | | | Hiscox Ltd. | | | 2,312,017 | |
| | 157,659 | | | | | Lancashire Holdings Ltd. | | | 951,767 | |
| | 8,480,000 | | | | | Regal Hotels International Holdings Ltd. | | | 473,464 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,939,347 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | British Virgin Islands: 0.0% |
| | 14,069 | | | | | Empire Online Ltd. | | | 8,342 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,342 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 7.0% |
| | 28,200 | | | @ | | ACE Aviation Holdings, Inc. | | | 539,023 | |
| | 40,800 | | | | | AGF Management Ltd. | | | 971,486 | |
| | 5,500 | | | @ | | Air Canada | | | 44,837 | |
| | 119,000 | | | | | Biovail Corp. | | | 1,361,215 | |
| | 40,300 | | | @ | | Blue Pearl Mining Ltd. | | | 869,945 | |
| | 83,100 | | | | | Canaccord Capital, Inc. | | | 854,021 | |
| | 139,900 | | | @ | | Celestica, Inc. | | | 1,314,124 | |
| | 156,400 | | | @ | | CGI Group, Inc. — Class A | | | 1,821,638 | |
| | 60,600 | | | | | Dorel Industries, Inc. | | | 1,835,270 | |
| | 420,300 | | | @ | | Eastern Platinum Ltd. | | | 1,210,277 | |
| | 69,300 | | | | | Gerdau AmeriSteel Corp. | | | 1,080,340 | |
| | 52,200 | | | | | Industrial Alliance Insurance | | | 2,053,065 | |
| | 52,700 | | | | | Inmet Mining Corp. | | | 4,324,948 | |
| | 11,400 | | | | | Laurentian Bank of Canada | | | 477,802 | |
| | 14,500 | | | @ | | Major Drilling Group International | | | 743,645 | |
| | 12,700 | | | | | Manitoba Telecom Services, Inc. | | | 503,158 | |
| | 57,300 | | | @ | | Mercator Minerals Ltd. | | | 605,374 | |
| | 311,300 | | | | | Methanex Corp. | | | 7,263,976 | |
| | 297,000 | | | @ | | Neo Material Technologies, Inc. | | | 1,365,415 | |
| | 28,500 | | | | | Northbridge Financial Corp. | | | 983,393 | |
| | 152,900 | | | | | Nova Chemicals Corp. | | | 3,853,244 | |
| | 120,900 | | | @ | | Oilexco Incorporated | | | 1,845,133 | |
| | 773,300 | | | @ | | Pacific Rubiales Energy Corp. | | | 1,136,415 | |
| | 8,900 | | | @ | | Pan Orient Energy Corp. | | | 98,094 | |
| | 124,884 | | | | | Parkland Income Fund | | | 1,548,805 | |
| | 23,100 | | | | | Pembina Pipeline Income Fund | | | 389,931 | |
| | 225,650 | | | @ | | QuADRa Mining Ltd. | | | 5,095,106 | |
| | 254,430 | | | | | Rothmans Inc. | | | 6,283,065 | |
| | 541,300 | | | | | Sherritt International Corp. | | | 7,551,648 | |
| | 40,600 | | | @ | | Sierra Wireless, Inc. | | | 755,883 | |
| | 60,000 | | | | | Superior Plus Income Fund | | | 805,481 | |
| | 53,000 | | | @ | | Taseko Mines Ltd. | | | 281,960 | |
| | 98,800 | | | @ | | Westjet Airlines Ltd. | | | 1,680,512 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 61,548,229 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | China: 0.1% |
| | 176,000 | | | | | Beijing Jingkelong Co., Ltd. | | | 108,356 | |
| | 166,000 | | | @ | | China Molybdenum Co., Ltd. | | | 180,312 | |
| | 199,500 | | | | | Great Wall Motor Co. Ltd. | | | 235,297 | |
| | 122,000 | | | | | Stella International Holdings Ltd. | | | 181,311 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 705,276 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 1.4% |
| | 19,525 | | | @ | | Alm. Brand Skadesforsikring A/S | | | 1,227,483 | |
| | 1,900 | | | | | Amagerbanken A/S | | | 78,727 | |
| | 2,600 | | | | | D/S Norden | | | 283,442 | |
| | 46,100 | | | | | East Asiatic Co., Ltd. A/S | | | 4,074,586 | |
| | 7,900 | | | | | Flsmidth & Co. A/S | | | 829,013 | |
| | 63,400 | | | | | H Lundbeck A/S | | | 1,562,447 | |
| | 76,660 | | | | | Sydbank A/S | | | 2,853,760 | |
| | 61,500 | | | @ | | TK Development | | | 898,171 | |
| | 575 | | | @ | | Topdanmark A/S | | | 101,076 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,908,705 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 1.0% |
| | 12,200 | | | | | Finnair OYJ | | | 120,471 | |
| | 52,673 | | | | | F-Secure OYJ | | | 225,363 | |
| | 109,384 | | | | | KCI Konecranes OYJ | | | 4,735,741 | |
| | 45,600 | | | | | Nokian Renkaat OYJ | | | 1,913,820 | |
| | 59,937 | | | | | Oriola-KD OYJ | | | 276,388 | |
| | 11,500 | | | | | Outotec OYJ | | | 716,368 | |
See Accompanying Notes to Financial Statements
194
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Finland (continued) |
| | 7,400 | | | | | Wartsila OYJ | | $ | 503,965 | |
| | 19,751 | | | | | YIT OYJ | | | 556,814 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,048,930 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 7.2% |
| | 9,831 | | | @ | | Alten | | | 345,219 | |
| | 6,643 | | | | | Bacou Dalloz | | | 840,140 | |
| | 86,680 | | | | | Beneteau SA | | | 2,372,746 | |
| | 21,983 | | | | | BioMerieux | | | 2,397,225 | |
| | 8,814 | | | | | Bonduelle S.C.A. | | | 1,092,460 | |
| | 1,820 | | | | | Bongrain SA | | | 178,276 | |
| | 8,339 | | | | | Bourbon SA | | | 560,771 | |
| | 44,295 | | | | | Capgemini SA | | | 2,660,422 | |
| | 4,091 | | | | | Casino Guichard Perrachon SA | | | 513,062 | |
| | 2,494 | | | | | CNP Assurances | | | 295,803 | |
| | 3,850 | | | | | Eramet SLN | | | 3,433,448 | |
| | 402,902 | | | @ | | Genesys | | | 1,554,803 | |
| | 7,560 | | | | | Groupe Steria SCA | | | 258,309 | |
| | 37,874 | | | | | Haulotte Group | | | 751,600 | |
| | 23,403 | | | @ | | Homair SA | | | 123,680 | |
| | 186,763 | | | | | IMS-International Metal Service | | | 7,491,950 | |
| | 7,200 | | | | | Ipsen | | | 439,996 | |
| | 12,000 | | | | | Lagardere SCA | | | 855,531 | |
| | 2,951 | | | | | Lisi | | | 318,609 | |
| | 20,000 | | | | | Neuf Cegetel | | | 1,118,754 | |
| | 12,951 | | | | | Nexans SA | | | 1,709,369 | |
| | 177,167 | | | | | Nexity | | | 7,888,120 | |
| | 15,528 | | | | | Pierre & Vacances | | | 1,704,323 | |
| | 178,732 | | | | | Rallye SA | | | 13,485,515 | |
| | 4,301 | | | | | Rubis | | | 382,777 | |
| | 11,412 | | | @ | | Saft Groupe SA | | | 439,899 | |
| | 16,700 | | | | | SEB SA | | | 3,048,112 | |
| | 4,718 | | | | | Sopra Group SA | | | 366,770 | |
| | 10,534 | | | @ | | Store Electronic | | | 246,725 | |
| | 4,564 | | | | | Sword Group | | | 195,542 | |
| | 13,716 | | | | | Teleperformance | | | 562,500 | |
| | 11,667 | | | | | Thales SA | | | 759,905 | |
| | 53,608 | | | @ | | Thomson | | | 338,958 | |
| | 36,961 | | | @ | | UbiSoft Entertainment | | | 3,691,554 | |
| | 2,717 | | | | | Vilmorin & Cie | | | 506,729 | |
| | 3,422 | | | | | Virbac SA | | | 322,608 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 63,252,210 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 9.8% |
| | 5,189 | | | | | AMB Generali Holding AG | | | 952,685 | |
| | 79,159 | | | | | Arques Industries AG | | | 1,056,837 | |
| | 33,050 | | | | | Bauer AG | | | 2,666,290 | |
| | 39,869 | | | | | Bechtle AG | | | 1,300,423 | |
| | 14,400 | | | | | Demag Cranes AG | | | 792,372 | |
| | 35,954 | | | | | Deutsche Euroshop AG | | | 1,526,378 | |
| | 25,025 | | | @ | | Em.Tv Ag | | | 89,022 | |
| | 272,448 | | | | | EpCos. AG | | | 4,157,059 | |
| | 20,653 | | | | | Fresenius Medical Care AG & Co. KGaA | | | 1,092,886 | |
| | 16,600 | | | | | GEA Group AG | | | 612,207 | |
| | 3,546 | | | | | Gerry Weber International AG | | | 119,733 | |
| | 281,014 | | | | | Gildemeister AG | | | 8,251,353 | |
| | 6,759 | | | | | Grenkeleasing AG | | | 266,467 | |
| | 56,873 | | | | | Hannover Rueckversicheru — Reg | | | 3,093,366 | |
| | 2,305 | | | | | Hawesko Holding AG | | | 87,588 | |
| | 523 | | | | | Hochtief AG | | | 53,252 | |
| | 14,000 | | | | | IDS Scheer AG | | | 172,773 | |
| | 82,824 | | | @ | | IWKA AG | | | 3,028,073 | |
| | 138,227 | | | | | Kloeckner & Co. AG | | | 7,546,633 | |
| | 12,189 | | | | | Koenig & Bauer AG | | | 398,769 | |
| | 13,950 | | | | | Krones AG | | | 1,181,948 | |
| | 47,050 | | | | | Leoni AG | | | 2,526,528 | |
| | 9,532 | | | | | MAN AG | | | 1,325,203 | |
| | 94,739 | | | @ | | Medion AG | | | 1,883,805 | |
| | 222,130 | | | | | MTU Aero Engines Holding AG | | | 10,069,344 | |
| | 152,287 | | | | | Norddeutsche Affinerie AG | | | 6,414,297 | |
| | 3,100 | | | | | Phoenix Solar AG | | | 189,600 | |
| | 13,396 | | | | | Rheinmetall AG | | | 1,011,069 | |
| | 4,750 | | | @ | | Roth & Rau AG | | | 1,088,473 | |
| | 53,614 | | | | | Salzgitter AG | | | 10,905,565 | |
| | 6,144 | | | @ | | SFC Smart Fuel Cell AG | | | 114,403 | |
| | 32,150 | | | @ | | SGL Carbon AG | | | 2,167,327 | |
| | 24,950 | | | | | Stada Arzneimittel AG | | | 1,682,408 | |
| | 53,800 | | | @ | | TUI AG | | | 1,532,593 | |
| | 34,891 | | | | | Vivacon AG | | | 608,564 | |
| | 25,771 | | | | | Vossloh AG | | | 3,719,191 | |
| | 5,800 | | | | | Wacker Chemie AG | | | 1,406,714 | |
| | 34,913 | | | @ | | Wirecard AG | | | 726,634 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 85,817,832 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.4% |
| | 221,294 | | | | | Anek Lines SA | | | 726,384 | |
| | 15,363 | | | @ | | Babis Vovos International Technical Co. | | | 466,963 | |
| | 11,412 | | | | | Fourlis Holdings SA | | | 360,180 | |
| | 14,397 | | | | | Jumbo SA | | | 425,331 | |
| | 68,570 | | | | | Sidenor Steel Production & Manufacturing Co. SA | | | 1,128,774 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,107,632 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 2.7% |
| | 96,000 | | | | | Agile Property Holdings Ltd. | | | 133,042 | |
| | 72,000 | | | @ | | China Everbright Ltd. | | | 183,138 | |
| | 85,000 | | | @ | | China Insurance International Holdings Co., Ltd. | | | 226,127 | |
| | 324,000 | | | | | Far East Consortium | | | 120,478 | |
| | 490,000 | | | | | First Pacific Co. | | | 359,131 | |
| | 4,408,000 | | | | | Global Green Tech Group Ltd. | | | 829,297 | |
| | 97,000 | | | | | Great Eagle Holding Co. | | | 281,410 | |
| | 176,000 | | | | | Hang Lung Group Ltd. | | | 947,165 | |
| | 320,000 | | | | | Hopewell Highway Infrastructure Ltd. | | | 254,623 | |
| | 180,000 | | | | | Industrial & Commercial Bank of China (Asia) Ltd. | | | 491,637 | |
| | 346,000 | | | | | Jinhui Shipping & Transportation Ltd. | | | 3,620,477 | |
| | 7,500 | | | | | Kerry Properties Ltd. | | | 50,779 | |
| | 444,000 | | | | | Luk Fook Holdings International Ltd. | | | 273,185 | |
| | 2,630,000 | | | | | Midland Holdings Ltd. | | | 2,719,286 | |
| | 8,592,000 | | | | | Minmetals Resources Ltd. | | | 3,329,988 | |
| | 52,500 | | | | | MTR Corp. | | | 187,756 | |
| | 23,700 | | | | | Nam Tai Electronics, Inc. | | | 244,347 | |
| | 249,000 | | | | | Pacific Andes Holdings Ltd. | | | 89,617 | |
| | 3,085,000 | | | | | Pacific Basin Shipping Ltd. | | | 5,638,178 | |
| | 2,020,000 | | | | | Shougang Concord Century Holding | | | 175,556 | |
| | 6,898,000 | | | | | Sinolink Worldwide Holdings | | | 1,210,366 | |
| | 154,000 | | | | | Television Broadcasts Ltd. | | | 884,517 | |
| | 548,000 | | | | | TPV Technology Ltd. | | | 382,038 | |
| | 149,194 | | | | | Vtech Holdings Ltd. | | | 817,512 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 23,449,650 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 0.2% |
| | 155,478 | | | | | Chennai Petroleum Corp., Ltd. | | | 1,387,210 | |
| | 29,207 | | | | | Great Eastern Shipping Co., Ltd. | | | 320,522 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,707,732 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 0.1% |
| | 893,000 | | | | | PT Tambang Batubara Bukit Asam Tbk | | | 1,021,700 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,021,700 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.6% |
| | 18,874 | | | | | DCC PLC | | | 433,759 | |
| | 2,100 | | | | | FBD Holdings PLC | | | 83,653 | |
| | 277,000 | | | | | Glanbia PLC | | | 2,149,349 | |
| | 88,300 | | | | | Greencore Group PLC | | | 522,550 | |
| | 36,400 | | | | | Iaws Group PLC | | | 917,294 | |
See Accompanying Notes to Financial Statements
195
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Ireland (continued) |
| | 37,200 | | | | | Kerry Group PLC | | $ | 1,150,601 | |
| | 55,700 | | | | | United Drug PLC | | | 331,271 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,588,477 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Israel: 0.2% |
| | 143,463 | | | @ | | Israel Discount Bank Ltd. | | | 348,515 | |
| | 13,249 | | | | | Partner
Communications | | | 311,490 | |
| | 39,800 | | | | | Partner Communications ADR | | | 926,146 | |
| | 7,578 | | | | | Super-Sol Ltd. | | | 37,612 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,623,763 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 2.1% |
| | 25,020 | | | | | ACEA S.p.A. | | | 481,777 | |
| | 81,500 | | | | | Aedes S.p.A | | | 249,064 | |
| | 278,200 | | | | | AEM S.p.A. | | | 1,022,449 | |
| | 47,140 | | | | | Autostrada Torino-Milano S.p.A. | | | 838,513 | |
| | 118,423 | | | | | Azimut Holding S.p.A. | | | 1,290,578 | |
| | 37,946 | | | | | Banco di Desio e della Brianza S.p.A. | | | 399,203 | |
| | 123,637 | | | @ | | BasicNet S.p.A. | | | 357,783 | |
| | 10,209 | | | | | Biesse S.p.A. | | | 217,080 | |
| | 137,800 | | | | | Brembo S.p.A. | | | 1,756,465 | |
| | 516,230 | | | | | CIR-Compagnie Industriali Riunite S.p.A. | | | 1,338,219 | |
| | 2,941 | | | | | Fondiaria-Sai S.p.A. | | | 117,813 | |
| | 81,503 | | | @ | | GreenergyCapital S.p.A. | | | 1,349 | |
| | 122,790 | | | @ | | Gruppo Coin S.p.A. | | | 802,481 | |
| | 140,621 | | | | | Indesit Co. S.p.A. | | | 1,688,034 | |
| | 393,096 | | | @ | | It Holding S.p.A | | | 393,508 | |
| | 81,503 | | | @ | | KME Group | | | 132,165 | |
| | 191,600 | | | @ | | Maire Tecnimont S.p.A. | | | 1,129,049 | |
| | 80,714 | | | | | Premafin Finanziaria S.p.A. | | | 188,135 | |
| | 30,163 | | | | | Prima Industrie S.p.A. | | | 1,358,157 | |
| | 82,100 | | | | | Prysmian S.p.A. | | | 1,935,585 | |
| | 238,134 | | | | | Recordati S.p.A. | | | 1,735,918 | |
| | 9,900 | | | | | Trevi Finanziaria S.p.A. | | | 228,609 | |
| | 258,787 | | | | | Unipol S.p.A. | | | 843,297 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,505,231 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 18.0% |
| | 102 | | | | | Acca Networks Co., Ltd. | | | 129,480 | |
| | 58,000 | | | @ | | Adores, Inc. | | | 145,234 | |
| | 11,200 | | | | | Aica Kogyo Co., Ltd. | | | 110,551 | |
| | 2,800 | | | | | Aichi Bank Ltd. | | | 240,631 | |
| | 44,050 | | | | | Aiful Corp. | | | 858,786 | |
| | 58,900 | | | | | Aisan Industry Co., Ltd. | | | 574,599 | |
| | 11,800 | | | | | Alfresa Holdings Corp. | | | 832,258 | |
| | 295,200 | | | @ | | Allied Telesis Holdings KK | | | 207,128 | |
| | 11,400 | | | | | Aloka Co., Ltd. | | | 144,282 | |
| | 3,900 | | | | | Alpha Corp. | | | 41,395 | |
| | 177,600 | | | | | Alpine Electronics, Inc. | | | 2,025,619 | |
| | 106,100 | | | @ | | AOC Holdings, Inc. | | | 1,138,147 | |
| | 10,500 | | | | | Arcs Co., Ltd. | | | 147,981 | |
| | 356,000 | | | | | Atsugi Co., Ltd. | | | 449,484 | |
| | 12,000 | | | | | Awa Bank Ltd. | | | 77,554 | |
| | 601 | | | | | Bosch Corp. | | | 3,451 | |
| | 170,800 | | | | | Century Leasing System, Inc. | | | 1,413,546 | |
| | 1,008,000 | | | @ | | Chori Co., Ltd. | | | 1,118,206 | |
| | 39,000 | | | | | Chugoku Marine Paints Ltd. | | | 298,901 | |
| | 20,000 | | | | | Chuo Denki Kogyo Co., Ltd. | | | 306,379 | |
| | 172,000 | | | | | Cosmo Oil Co., Ltd. | | | 571,025 | |
| | 6,000 | | | @ | | Cosmos Initia Co., Ltd. | | | 18,688 | |
| | 3,900 | | | | | Create S D Co., Ltd. | | | 85,967 | |
| | 15,000 | | | | | Daido Steel Co., Ltd. | | | 83,553 | |
| | 33,000 | | | | | Daihatsu Diesel Manufacturing Co., Ltd. | | | 327,843 | |
| | 57,000 | | | | | Daiichi Jitsugyo Co., Ltd. | | | 238,854 | |
| | 13,100 | | | @ | | Daiichikosho Co., Ltd. | | | 128,188 | |
| | 44,000 | | | @ | | Daito Bank Ltd. | | | 37,718 | |
| | 235,000 | | | | | Daiwa Industries Ltd. | | | 1,065,749 | |
| | 23,700 | | | | | DC Co., Ltd. | | | 65,036 | |
| | 15,140 | | | | | Diamond Lease Co., Ltd. | | | 743,194 | |
| | 52,000 | | | | | Eagle Industry Co., Ltd. | | | 463,497 | |
| | 12,000 | | | | | Excel Co., Ltd. | | | 143,638 | |
| | 1,300 | | | | | Exedy Corp. | | | 35,910 | |
| | 64,500 | | | | | FamilyMart Co., Ltd. | | | 2,265,133 | |
| | 57,100 | | | | | Fancl Corp. | | | 714,528 | |
| | 174,000 | | | | | Fuji Machine Manufacturing Co., Ltd. | | | 3,464,427 | |
| | 28,800 | | | | | Fuji Oil Co., Ltd. | | | 266,975 | |
| | 8,700 | | | | | Fujikura Kasei Co., Ltd. | | | 71,762 | |
| | 17,300 | | | | | Fujitsu Frontech Ltd. | | | 152,141 | |
| | 48,000 | | | | | Fujitsu General Ltd. | | | 223,873 | |
| | 25,000 | | | | | Furukawa-Sky Aluminum Corp. | | | 53,639 | |
| | 39,200 | | | | | Futaba Industrial Co., Ltd. | | | 896,571 | |
| | 755 | | | | | Geo Co., Ltd. | | | 630,620 | |
| | 33,400 | | | | | Glory Ltd. | | | 752,299 | |
| | 23,300 | | | | | Gulliver International Co. | | | 840,572 | |
| | 341,000 | | | | | Hino Motors Ltd. | | | 2,153,891 | |
| | 6,000 | | | | | Hirano Tecseed Co., Ltd. | | | 54,671 | |
| | 12,400 | | | | | HIS Co., Ltd. | | | 192,805 | |
| | 6,000 | | | | | Hisaka Works Ltd. | | | 91,500 | |
| | 153,000 | | | | | Hitachi Cable Ltd. | | | 610,135 | |
| | 34,000 | | | | | Hitachi Kokusai Electric, Inc. | | | 322,823 | |
| | 113,000 | | | | | Hitachi Metals Ltd. | | | 1,696,765 | |
| | 15,400 | | | | | Hitachi Software Engineering Co., Ltd. | | | 379,199 | |
| | 36,400 | | | | | Hitachi Transport System Ltd. | | | 435,752 | |
| | 38,200 | | | | | Hosiden Corp. | | | 775,410 | |
| | 98,000 | | | | | Hosokawa Micron Corp. | | | 626,734 | |
| | 38,000 | | | | | Hyakugo Bank Ltd. | | | 249,907 | |
| | 71,000 | | | | | Hyakujushi Bank Ltd. | | | 423,784 | |
| | 102,900 | | | | | IBJ Leasing Co., Ltd. | | | 1,919,418 | |
| | 2,500 | | | | | Icom, Inc. | | | 59,173 | |
| | 754 | | | | | IDU Co. | | | 387,392 | |
| | 65,400 | | | | | Inabata & Co., Ltd. | | | 360,978 | |
| | 125,900 | | | @ | | Ines Corp. | | | 647,414 | |
| | 4,800 | | | | | Information Services International-Dentsu Ltd. | | | 41,554 | |
| | 16,037 | | | @ | | IT Holdings Corp. | | | 331,582 | |
| | 64,000 | | | @ | | Iwatani International Corp. | | | 189,211 | |
| | 21,000 | | | | | Izumiya Co., Ltd. | | | 145,111 | |
| | 123,000 | | | @ | | Izutsuya Co., Ltd. | | | 123,651 | |
| | 32,000 | | | | | Japan Aviation Electronics Industry Ltd. | | | 276,611 | |
| | 208,000 | | | | | Japan Radio Co., Ltd. | | | 514,554 | |
| | 860,000 | | | | | JFE Shoji Holdings, Inc. | | | 6,682,118 | |
| | 69,000 | | | @ | | Jidosha Buhin Kogyo Co., Ltd. | | | 315,332 | |
| | 38,000 | | | | | Joshin Denki Co., Ltd. | | | 330,355 | |
| | 11,900 | | | | | JSP Corp. | | | 104,173 | |
| | 25,000 | | | | | Kanamoto Co., Ltd. | | | 152,793 | |
| | 2,102,000 | | | @ | | Kanematsu Corp. | | | 3,255,881 | |
| | 122,400 | | | | | Kanto Auto Works Ltd. | | | 1,644,905 | |
| | 83,833 | | | @ | | Kanto Tsukuba Bank Ltd. | | | 477,684 | |
| | 209,000 | | | @ | | Kawai Musical Instruments Manufacturing Co., Ltd. | | | 319,592 | |
| | 24,600 | | | | | Keiyo Co., Ltd. | | | 134,751 | |
| | 198,000 | | | | | Kenwood Corp. | | | 234,462 | |
| | 4,900 | | | | | Kita-Nippon Bank Ltd. | | | 197,212 | |
| | 891 | | | @ | | KK DaVinci Advisors | | | 854,945 | |
| | 41,900 | | | | | Koa Corp. | | | 369,400 | |
| | 87,000 | | | | | Koito Manufacturing Co., Ltd. | | | 1,146,077 | |
| | 368,000 | | | | | Kurimoto Ltd. | | | 479,970 | |
| | 38,300 | | | | | Kuroda Electric Co., Ltd. | | | 545,536 | |
| | 28,100 | | | @ | | Kyoden Co., Ltd. | | | 43,927 | |
| | 36,000 | | | | | Kyodo Printing Co., Ltd. | | | 96,647 | |
| | 13,900 | | | | | Kyoei Steel Ltd. | | | 313,944 | |
| | 324 | | | @ | | Kyoei Tanker Co., Ltd. | | | 946 | |
| | 63,000 | | | | | Kyorin Co., Ltd. | | | 679,771 | |
| | 3,400 | | | | | Lintec Corp. | | | 44,160 | |
| | 44,000 | | | @ | | Maeda Road Construction Co., Ltd. | | | 344,218 | |
| | 55,000 | | | @ | | Marudai Food Co., Ltd. | | | 118,952 | |
| | 147,000 | | | @ | | Maruetsu, Inc. | | | 1,193,272 | |
| | 38,900 | | | @ | | Matsumotokiyoshi Holdings Co., Ltd. | | | 809,910 | |
See Accompanying Notes to Financial Statements
196
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Japan (continued) |
| | 20,600 | | | | | Megane TOP Co., Ltd. | | $ | 200,983 | |
| | 18,500 | | | | | Mikuni Coca-Cola Bottling Co., Ltd. | | | 192,769 | |
| | 185,000 | | | | | Minebea Co., Ltd. | | | 1,131,743 | |
| | 32,000 | | | | | Ministop Co., Ltd. | | | 661,511 | |
| | 53,100 | | | | | Miraca Holdings, Inc. | | | 1,258,404 | |
| | 6,300 | | | | | MISUMI Group, Inc. | | | 122,574 | |
| | 537,000 | | | | | Mitsubishi Paper Mills Ltd. | | | 1,202,665 | |
| | 67,000 | | | | | Mitsubishi Steel Manufacturing Co., Ltd. | | | 243,874 | |
| | 264,000 | | | | | Mitsui Sugar Co., Ltd. | | | 878,032 | |
| | 281 | | | | | Money Partners Co., Ltd. | | | 317,299 | |
| | 129,400 | | | | | Mori Seiki Co., Ltd. | | | 2,389,751 | |
| | 46,300 | | | | | Musashi Seimitsu Industry Co., Ltd. | | | 1,030,417 | |
| | 19,583 | | | | | Namura Shipbuilding Co., Ltd. | | | 131,816 | |
| | 18,200 | | | | | NEC Fielding Ltd. | | | 219,069 | |
| | 11,400 | | | | | NEC Leasing Ltd. | | | 143,087 | |
| | 32,800 | | | | | NEC Networks & System Integration Corp. | | | 459,806 | |
| | 458 | | | | | Net One systems Co., Ltd. | | | 578,378 | |
| | 92,000 | | | | | NHK Spring Co., Ltd. | | | 661,565 | |
| | 6,200 | | | | | Nichi-iko Pharmaceutical Co., Ltd. | | | 163,014 | |
| | 531,000 | | | | | Nichirei Corp. | | | 2,506,689 | |
| | 3,900 | | | | | Nidec Copal Corp. | | | 52,839 | |
| | 47,500 | | | | | Nifco, Inc. | | | 1,025,267 | |
| | 16,000 | | | | | Nihon Parkerizing Co., Ltd. | | | 254,583 | |
| | 199,000 | | | | | Nippon Denko Co., Ltd. | | | 2,395,785 | |
| | 195,000 | | | | | Nippon Metal Industry Co., Ltd. | | | 581,132 | |
| | 13,000 | | | | | Nippon Seiki Co., Ltd. | | | 191,077 | |
| | 52,000 | | | | | Nippon Shinyaku Co., Ltd. | | | 612,465 | |
| | 22,500 | | | | | Nippon Signal Co., Ltd. | | | 124,686 | |
| | 121,000 | | | @ | | Nippon Soda Co., Ltd. | | | 430,527 | |
| | 137,000 | | | | | Nippon Steel Trading Co., Ltd. | | | 380,743 | |
| | 265,000 | | | | | Nippon Synthetic Chemical Industry Co., Ltd. | | | 1,580,560 | |
| | 30,000 | | | | | Nippon Thompson Co., Ltd. | | | 208,748 | |
| | 36,000 | | | | | Nipro Corp. | | | 612,489 | |
| | 6,900 | | | | | Nishimatsuya Chain Co. Ltd. | | | 86,600 | |
| | 67,000 | | | @ | | Nishi-Nippon City Bank Ltd. | | | 205,670 | |
| | 220,000 | | | | | Nissan Shatai Co., Ltd. | | | 1,638,085 | |
| | 243,000 | | | | | Nisshin Steel Co., Ltd. | | | 901,288 | |
| | 9,100 | | | | | Nitta Corp. | | | 150,365 | |
| | 109,000 | | | | | Nittetsu Mining Co., Ltd. | | | 670,225 | |
| | 560 | | | | | Obic Co., Ltd. | | | 103,513 | |
| | 33,760 | | | | | Oiles Corp. | | | 630,699 | |
| | 51,000 | | | | | Oita Bank Ltd. | | | 360,361 | |
| | 16,270 | | | | | Okinawa Electric Power Co., Inc. | | | 710,562 | |
| | 90 | | | | | Optex Co., Ltd. | | | 1,471 | |
| | 4,000 | | | | | Osaka Steel Co., Ltd. | | | 54,667 | |
| | 6,900 | | | | | OSG Corp. | | | 97,159 | |
| | 484,000 | | | | | Pacific Metals Co., Ltd. | | | 4,720,317 | |
| | 16,400 | | | | | Pigeon Corp. | | | 302,088 | |
| | 176 | | | | | Pilot Corp. | | | 281,997 | |
| | 184,000 | | | | | Pioneer Corp. | | | 1,820,605 | |
| | 40,800 | | | | | Plenus Co., Ltd. | | | 496,408 | |
| | 80,600 | | | | | Ricoh Leasing Co., Ltd. | | | 1,601,695 | |
| | 1,700 | | | | | Ryosan Co., Ltd. | | | 37,997 | |
| | 105,300 | | | | | Saizeriya Co., Ltd. | | | 922,678 | |
| | 43,000 | | | | | San-Ai Oil Co., Ltd. | | | 172,164 | |
| | 250,000 | | | | | Sanden Corp. | | | 1,032,909 | |
| | 342,500 | | | @ | | Sanix, Inc. | | | 757,100 | |
| | 1,067,000 | | | @ | | Sanyo Electric Co., Ltd. | | | 2,662,410 | |
| | 6,100 | | | | | Sato Corp. | | | 82,384 | |
| | 45,200 | | | | | Shimachu Co., Ltd. | | | 1,243,837 | |
| | 71,100 | | | @ | | Shinki Co., Ltd. | | | 87,948 | |
| | 139,200 | | | | | Shinko Plantech Co., Ltd. | | | 2,187,304 | |
| | 37,000 | | | | | Shinmaywa Industries Ltd. | | | 141,715 | |
| | 292,000 | | | | | Shinsho Corp. | | | 986,088 | |
| | 660,000 | | | | | Shinwa Kaiun Kaisha Ltd. | | | 4,357,722 | |
| | 80,000 | | | | | Shizuoka Gas Co., Ltd. | | | 479,783 | |
| | 72,800 | | | | | Siix Corp. | | | 603,130 | |
| | 1,638 | | | | | Sky Perfect Jsat Corp. | | | 704,233 | |
| | 196,800 | | | | | Sojitz Corp. | | | 758,068 | |
| | 6,700 | | | | | Sumida Corp. | | | 88,401 | |
| | 611,000 | | | | | Sumikin Bussan Corp. | | | 2,316,531 | |
| | 10,100 | | | | | Sumisho Computer Systems Corp. | | | 193,530 | |
| | 63,200 | | | | | Sumitomo Densetsu Co., Ltd. | | | 397,411 | |
| | 32,220 | | | | | Sumitomo Real Estate Sales | | | 1,344,302 | |
| | 1,261 | | | | | Suncity Co., Ltd. | | | 188,937 | |
| | 48,200 | | | | | Suruga Corp. | | | 281,398 | |
| | 33,200 | | | | | Tachi-S Co., Ltd. | | | 270,416 | |
| | 96,000 | | | @ | | Taihei Kogyo Co., Ltd. | | | 356,270 | |
| | 48,000 | | | | | Takisawa Machine Tool Co., Ltd. | | | 72,772 | |
| | 87,000 | | | | | Tamura Corp. | | | 277,789 | |
| | 77,000 | | | | | Tanabe Seiyaku Co., Ltd. | | | 919,690 | |
| | 87,000 | | | | | TBK Co., Ltd. | | | 382,908 | |
| | 36,000 | | | | | TCM Corp. | | | 79,934 | |
| | 1,813 | | | | | Telepark Corp. | | | 1,690,646 | |
| | 13,100 | | | | | TKC Corp. | | | 261,331 | |
| | 61,600 | | | | | Toho Pharmaceutical Co., Ltd. | | | 1,273,114 | |
| | 496 | | | @ | | Tohto Suisan Co., Ltd. | | | 936 | |
| | 102,200 | | | | | Tokai Rika Co., Ltd. | | | 2,503,266 | |
| | 53,800 | | | | | Tokai Rubber Industries, Inc. | | | 787,590 | |
| | 246,000 | | | | | Tokyo Dome Corp. | | | 1,015,813 | |
| | 168,000 | | | @ | | Tokyo Tekko Co., Ltd. | | | 712,847 | |
| | 3,700 | | | | | Tokyo Tomin Bank Ltd. | | | 78,921 | |
| | 2,700 | | | | | Tokyu Community Corp. | | | 59,007 | |
| | 248,000 | | | @ | | Tonichi Carlife Group, Inc. | | | 276,655 | |
| | 78,000 | | | | | Toshiba Tec Corp. | | | 547,297 | |
| | 324,000 | | | | | Toyo Kohan Co., Ltd. | | | 1,606,541 | |
| | 270,000 | | | | | Toyo Securities Co., Ltd. | | | 913,014 | |
| | 65,000 | | | @ | | Toyo Tire & Rubber Co., Ltd. | | | 252,813 | |
| | 6,300 | | | | | Toyoda Gosei Co., Ltd. | | | 230,245 | |
| | 108,000 | | | | | Toyota Auto Body Co., Ltd. | | | 2,162,128 | |
| | 18,000 | | | | | Toyota Boshoku Corp. | | | 514,812 | |
| | 8,500 | | | | | Trusco Nakayama Corp. | | | 130,887 | |
| | 73,400 | | | | | TS Tech Co., Ltd. | | | 1,213,837 | |
| | 301,000 | | | | | Tsubakimoto Chain Co. | | | 2,032,556 | |
| | 77,000 | | | | | Tsudakoma Corp. | | | 178,969 | |
| | 4,400 | | | | | Tsumura & Co. | | | 106,506 | |
| | 2,300 | | | | | Tsuruha Holdings, Inc. | | | 85,953 | |
| | 4,300 | | | | | Tsutsumi Jewelry Co., Ltd. | | | 90,975 | |
| | 82,000 | | | | | Uchida Yoko Co., Ltd. | | | 342,111 | |
| | 9,200 | | | | | UEX Ltd. | | | 61,887 | |
| | 5,000 | | | | | Union Tool Co. | | | 183,895 | |
| | 12,300 | | | | | Usen Corp. | | | 53,762 | |
| | 14,100 | | | | | Valor Co., Ltd. | | | 157,426 | |
| | 14,000 | | | | | Waseda Academy Co., Ltd. | | | 127,568 | |
| | 29,400 | | | | | Weathernews, Inc. | | | 375,745 | |
| | 57 | | | @ | | Wowow, Inc. | | | 91,550 | |
| | 5,600 | | | | | Y.A.C. Co., Ltd. | | | 58,765 | |
| | 11,000 | | | | | Yamanashi Chuo Bank Ltd. | | | 72,639 | |
| | 290,500 | | | | | Yamato Kogyo Co., Ltd. | | | 13,773,698 | |
| | 345,200 | | | | | Yamazen Corp. | | | 1,310,939 | |
| | 32,000 | | | | | Yaskawa Electric Corp. | | | 324,457 | |
| | 10,200 | | | | | Yorozu Corp. | | | 148,001 | |
| | 1,124,000 | | | @ | | Yuasa Trading Co., Ltd. | | | 1,555,963 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 158,036,916 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Liechtenstein: 0.1% |
| | 2,110 | | | | | Verwalt & Privat-Bank AG | | | 530,628 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 530,628 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Malaysia: 0.0% |
| | 17,100 | | | @ | | Proton Holdings Bhd | | | 21,075 | |
| | 114,300 | | | | | Tan Chong Motor Holdings Bhd | | | 66,060 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 87,135 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 0.3% |
| | 456,600 | | | @ | | Axtel SAB de CV — CPO | | | 840,174 | |
| | 197,100 | | | | | Grupo Aeroportuario del Pacifico SA de CV | | | 803,339 | |
| | 100,100 | | | | | Grupo Financiero Banorte SA de CV | | | 433,087 | |
See Accompanying Notes to Financial Statements
197
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Mexico (continued) |
| | 72,800 | | | | | Grupo Mexico SA de CV | | $ | 530,969 | |
| | 54,000 | | | @ | | Industrias CH SA — Series B | | | 247,122 | |
| | 28,300 | | | | | Mexichem SA de CV | | | 202,225 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,056,916 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 2.6% |
| | 2,545 | | | @ | | Advanced Metallurgical Group NV | | | 173,296 | |
| | 91,669 | | | | | Draka Holding | | | 3,264,169 | |
| | 16,744 | | | | | Fugro NV | | | 1,488,122 | |
| | 35,200 | | | | | Grontmij | | | 1,337,086 | |
| | 58,800 | | | | | Imtech NV | | | 1,633,367 | |
| | 18,874 | | | | | Innoconcepts | | | 319,049 | |
| | 6,679 | | | | | Nutreco Holding NV | | | 487,747 | |
| | 302,736 | | | | | OCE NV | | | 4,541,885 | |
| | 37,102 | | | | | OPG Groep NV | | | 993,922 | |
| | 15,801 | | | | | SBM Offshore NV | | | 602,267 | |
| | 21,210 | | | | | Smit Internationale NV | | | 2,457,215 | |
| | 14,484 | | | | | Ten Cate NV | | | 525,068 | |
| | 20,740 | | | | | TKH Group NV | | | 505,201 | |
| | 15,736 | | | @ | | TomTom | | | 543,691 | |
| | 177,512 | | | | | USG People NV | | | 4,080,457 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,952,542 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.1% |
| | 954,406 | | | | | Air New Zealand Ltd. | | | 931,677 | |
| | 146,349 | | | | | Fisher & Paykel Healthcare Corp. | | | 305,402 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,237,079 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.8% |
| | 538,509 | | | @ | | Acta Holding ASA | | | 1,929,515 | |
| | 190,200 | | | | | Cermaq ASA | | | 2,172,892 | |
| | 416,800 | | | @ | | Deep Sea Supply PLC | | | 1,800,581 | |
| | 21,100 | | | @ | | ODIM ASA | | | 369,560 | |
| | 13,850 | | | @ | | Petroleum Geo-Services ASA | | | 372,685 | |
| | 98,000 | | | @ | | StepStone ASA | | | 324,734 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,969,967 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 0.2% |
| | 90,001 | | | | | Semapa-Sociedade de Investimento e Gestao | | | 1,259,481 | |
| | 293,236 | | | | | Teixeira Duarte — Engenharia Construcoes SA | | | 704,608 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,964,089 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Singapore: 3.3% |
| | 1,423,000 | | | | | Allgreen Properties Ltd. | | | 1,353,049 | |
| | 460,000 | | | @,# | | ARA Asset Management Ltd. | | | 257,808 | |
| | 882,000 | | | | | Armstrong Industrial Corp. | | | 211,891 | |
| | 285,000 | | | | | Aztech Systems Ltd. | | | 47,572 | |
| | 209,000 | | | | | Goodpack Ltd. | | | 269,622 | |
| | 495,000 | | | | | Ho Bee Investment Ltd. | | | 369,262 | |
| | 542,000 | | | I | | Hong Leong Asia Ltd. | | | 1,065,511 | |
| | 58,000 | | | | | Jardine Cycle & Carriage Ltd. | | | 711,923 | |
| | 4,008,000 | | | | | LC Development Ltd. | | | 798,984 | |
| | 1,973,000 | | | | | Meiban Group Ltd. | | | 464,802 | |
| | 19,000 | | | I | | MFS Technology Ltd. | | | 4,554 | |
| | 702,000 | | | | | Neptune Orient Lines Ltd. | | | 1,664,436 | |
| | 159,000 | | | | | Parkway Holdings Ltd. | | | 412,971 | |
| | 352,000 | | | | | Rotary Engineering Ltd. | | | 238,840 | |
| | 29,000 | | | | | Singapore Land Ltd. | | | 154,603 | |
| | 3,810,000 | | | | | Singapore Petroleum Co., Ltd. | | | 20,341,683 | |
| | 115,000 | | | | | SMRT Corp., Ltd. | | | 152,714 | |
| | 212,000 | | | | | Unisteel Technology Ltd. | | | 252,850 | |
| | 4,188,000 | | | @ | | Yongnam Holdings Ltd. | | | 676,550 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 29,449,625 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 3.0% |
| | 31,900 | | | | | BNG Steel Co., Ltd. | | | 374,070 | |
| | 19,875 | | | | | C-motech Co., Ltd. | | | 608,937 | |
| | 48,730 | | | @ | | Dongbu Insurance Co., Ltd. | | | 1,826,083 | |
| | 29,330 | | | | | Dongbu Steel Co., Ltd. | | | 390,349 | |
| | 24,720 | | | @ | | Forhuman Co., Ltd. | | | 394,860 | |
| | 99,680 | | | | | From30 Co., Ltd. | | | 755,386 | |
| | 441,636 | | | @ | | Halim Co., Ltd. | | | 908,955 | |
| | 10,820 | | | | | Hanshin Construction | | | 257,319 | |
| | 23,199 | | | | | Honam Petrochemical Corp. | | | 2,053,794 | |
| | 57,059 | | | @ | | Human & Technology Co., Ltd. | | | 327,828 | |
| | 31,070 | | | | | Hyosung Corp. | | | 1,928,459 | |
| | 1,409 | | | | | Hyundai Department Store Co., Ltd. | | | 148,488 | |
| | 3,652 | | | | | Hyundai Development Co. | | | 233,144 | |
| | 17,400 | | | | | Hyundai DSF Co., Ltd. | | | 219,165 | |
| | 52,720 | | | @ | | Hyundai Marine & Fire Insurance Co., Ltd. | | | 1,078,996 | |
| | 2,833 | | | | | Hyunjin Materials Co., Ltd. | | | 111,265 | |
| | 66,890 | | | | | Jinheung Mutual Savings Bank | | | 361,524 | |
| | 514 | | | | | KCC Corp. | | | 228,950 | |
| | 8,327 | | | | | KCC Engineering & Construction | | | 433,265 | |
| | 15,780 | | | | | Keangnam Enterprises Ltd. | | | 584,859 | |
| | 3,308 | | | | | Korea Iron & Steel Co., Ltd. | | | 255,282 | |
| | 19,926 | | | | | Korea Zinc Co., Ltd. | | | 2,397,953 | |
| | 23,190 | | | | | Korean Petrochemical Industrial Co. | | | 1,071,293 | |
| | 77,450 | | | @ | | KP Chemical Corp. | | | 652,949 | |
| | 14,080 | | | | | Kumho Industrial Co., Ltd. | | | 468,973 | |
| | 12,676 | | | | | Kyeryong Construction Industrial Co., Ltd. | | | 462,734 | |
| | 26,400 | | | @ | | LG Micron Ltd. | | | 1,172,848 | |
| | 68,290 | | | @ | | LIG Non-Life Insurance Co., Ltd. | | | 1,460,294 | |
| | 2,770 | | | | | MegaStudy Co., Ltd. | | | 908,799 | |
| | 14,580 | | | | | Meritz Fire & Marine Insurance Co., Ltd. | | | 126,436 | |
| | 44,384 | | | | | People & Telecommunication, Inc. | | | 440,001 | |
| | 2,547 | | | | | Samsung Engineering Co., Ltd. | | | 226,426 | |
| | 8,792 | | | @ | | Samsung SDI Co., Ltd. | | | 677,324 | |
| | 26,220 | | | I | | SeAH Steel Corp. | | | 1,224,197 | |
| | 15,662 | | | | | SFA Engineering Corp. | | | 1,033,183 | |
| | 51,680 | | | | | Solomon Mutual Savings Bank | | | 548,528 | |
| | 36,144 | | | | | Taesan LCD Co., Ltd. | | | 257,651 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,610,567 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 2.5% |
| | 7,800 | | | | | Banco Espanol de Credito SA (Banesto) | | | 145,299 | |
| | 3,919 | | | | | Construcciones y Auxiliar de Ferrocarriles SA | | | 1,714,921 | |
| | 495,962 | | | | | Corp. Mapfre SA | | | 2,515,745 | |
| | 9,100 | | | | | Corporacion Financiera Alba SA | | | 633,575 | |
| | 17,870 | | | | | Duro Felguera SA | | | 193,718 | |
| | 18,874 | | | | | Enagas | | | 570,225 | |
| | 65,700 | | | | | Grifols SA | | | 1,828,139 | |
| | 33,400 | | | | | Grupo Catalana Occidente SA | | | 1,268,134 | |
| | 76,892 | | | | | Iberia Lineas Aereas de Espana | | | 301,959 | |
| | 92,700 | | | | | Indra Sistemas SA | | | 2,518,511 | |
| | 71,600 | | | @ | | Laboratorios Almirall SA | | | 1,495,945 | |
| | 5,406 | | | | | Pescanova SA | | | 295,415 | |
| | 35,129 | | | | | Red Electrica de Espana | | | 2,271,322 | |
| | 30,400 | | | @ | | Solaria Energia y Medio Ambiente SA | | | 574,546 | |
| | 181,263 | | | | | Tubos Reunidos SA | | | 1,262,139 | |
| | 51,435 | | | | | Union Fenosa SA | | | 3,434,979 | |
| | 22,207 | | | | | Viscofan SA | | | 532,688 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 21,557,260 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 2.8% |
| | 132,200 | | | | | BE Group AB | | | 1,486,041 | |
| | 409,642 | | | | | Fabege AB | | | 3,815,420 | |
| | 15,300 | | | | | Getinge AB | | | 388,313 | |
| | 262,800 | | | | | JM AB | | | 4,314,412 | |
| | 179,000 | | | | | Kungsleden AB | | | 1,779,899 | |
| | 304,800 | | | | | NCC AB | | | 5,818,212 | |
| | 388,200 | | | | | Peab AB | | | 3,330,422 | |
| | 102,117 | | | @ | | Peab AB | | | 1,014,777 | |
| | 6,671 | | | | | Saab AB | | | 188,225 | |
See Accompanying Notes to Financial Statements
198
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | Sweden (continued) |
| | 77,400 | | | @ | | SAS AB | | $ | 618,111 | |
| | 23,263 | | | | | Swedish Match AB | | | 506,877 | |
| | 941,000 | | | @ | | West Siberian Resources Ltd. GDR | | | 615,184 | |
| | 37,500 | | | | | Wihlborgs Fastigheter AB | | | 819,699 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 24,695,592 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 4.4% |
| | 31,500 | | | | | Addax Petroleum Corp. | | | 1,403,753 | |
| | 548 | | | | | Adecco SA | | | 32,619 | |
| | 1,339 | | | | | AFG Arbonia-Forster Holding | | | 419,168 | |
| | 27,905 | | | | | Baloise Holding AG | | | 3,038,706 | |
| | 103 | | | | | Bank Sarasin & Compagnie AG | | | 470,797 | |
| | 5,060 | | | | | Bellevue Group AG | | | 316,292 | |
| | 4,213 | | | | | BKW FMB Energie AG | | | 519,033 | |
| | 2,911 | | | | | Bucher Industries AG | | | 805,297 | |
| | 2,264 | | | | | Compagnie Financiere Tradition (CFT) | | | 427,698 | |
| | 1,487 | | | | | Flughafen Zuerich AG | | | 651,134 | |
| | 4,413 | | | @ | | Forbo Holding AG | | | 2,226,991 | |
| | 15,654 | | | | | Galenica AG | | | 4,952,891 | |
| | 3,774 | | | | | Geberit AG — Reg | | | 579,622 | |
| | 8,725 | | | @ | | Georg Fischer AG | | | 4,747,975 | |
| | 5,902 | | | | | Helvetia Holding AG | | | 2,456,801 | |
| | 14,200 | | | | | Holcim Ltd. | | | 1,385,523 | |
| | 6,347 | | | | | Huber & Suhner AG | | | 306,587 | |
| | 1,500 | | | | | Kaba Holding AG — Reg B | | | 469,311 | |
| | 2,439 | | | | | Kuoni Reisen Holding | | | 1,412,723 | |
| | 14,949 | | | @ | | Micronas Semiconductor Hold | | | 114,457 | |
| | 30,000 | | | | | Mobilezone Holding AG | | | 222,941 | |
| | 1,261 | | | @ | | Newave Energy Holding SA | | | 53,264 | |
| | 10,800 | | | | | Pargesa Holding SA | | | 1,235,041 | |
| | 19,037 | | | @ | | PSP Swiss Property AG | | | 1,178,643 | |
| | 2,100 | | | | | Schweizerhall Holding AG | | | 353,437 | |
| | 292 | | | | | Sika AG | | | 503,800 | |
| | 293 | | | | | St. Galler Kantonalbank | | | 138,274 | |
| | 13,190 | | | @ | | Swiss Life Holding | | | 3,920,428 | |
| | 14,081 | | | | | Swissquote Group Holding — Reg | | | 660,764 | |
| | 6,700 | | | | | Syngenta AG | | | 1,991,274 | |
| | 53,740 | | | @ | | Temenos Group AG — Reg | | | 1,507,324 | |
| | 1,200 | | | @ | | U-Blox AG | | | 58,086 | |
| | 69 | | | | | Zehnder Group AG | | | 101,292 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 38,661,946 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.2% |
| | 164,956 | | | | | Altek Corp. | | | 255,978 | |
| | 35,000 | | | @ | | Chia Hsin Cement Corp. | | | 34,773 | |
| | 5,504,000 | | | @ | | Chunghwa Picture Tubes Ltd. | | | 1,728,307 | |
| | 720 | | | | | Everlight Electronics Co., Ltd. | | | 2,762 | |
| | 1,590,000 | | | @ | | Grand Pacific Petrochemical Corp. | | | 633,648 | |
| | 2,729,088 | | | @ | | HannStar Display Corp. | | | 1,255,528 | |
| | 178,000 | | | | | Hung Sheng Construction Co. | | | 190,291 | |
| | 400,000 | | | | | KGI Securities Co., Ltd. | | | 340,097 | |
| | 207,000 | | | | | Kindom Construction Co., Ltd. | | | 163,846 | |
| | 220,454 | | | | | Lee Chang Yung Chemical Industry Corp. | | | 278,548 | |
| | 2,889,918 | | | | | Macronix International | | | 1,501,218 | |
| | 2,112,444 | | | | | Micro-Star International Co., Ltd. | | | 1,843,711 | |
| | 550 | | | | | Powertech Technology, Inc. | | | 2,208 | |
| | 60,000 | | | | | Sinon Corp. | | | 35,453 | |
| | 32,000 | | | | | Synnex Technology International Corp. | | | 85,418 | |
| | 139,150 | | | | | Taiwan Surface Mounting Technology Co., Ltd. | | | 294,174 | |
| | 310,000 | | | @ | | Tatung Co., Ltd. | | | 186,687 | |
| | 408,000 | | | | | TSRC Corp. | | | 656,210 | |
| | 159,000 | | | | | U-Ming Marine Transport Corp. | | | 531,373 | |
| | 224 | | | | | Unimicron Technology Corp. | | | 307 | |
| | 467,000 | | | | | Universal Scientific Industrial Co., Ltd. | | | 294,046 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,314,583 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 0.8% |
| | 51,189 | | | | | Akcansa Cimento A/S | | | 216,117 | |
| | 316,793 | | | | | Aksa Akrilik Kimya Sanayii | | | 536,817 | |
| | 301,213 | | | | | Anadolu Sigorta | | | 343,937 | |
| | 1 | | | | | Bolu Cimento Sanayii | | | 1 | |
| | 276,305 | | | | | Bossa Ticaret Sanayi Isletme | | | 271,072 | |
| | 609,854 | | | @ | | Dogan Sriketler Grubu Holdings | | | 735,726 | |
| | 77,264 | | | | | Ford Otomotiv Sanayi A/S | | | 721,445 | |
| | 28,916 | | | @ | | Goodyear Lastikleri TAS | | | 334,537 | |
| | 372,870 | | | @ | | GSD Holdings A/S | | | 416,512 | |
| | 746,616 | | | @ | | Ihlas Holding | | | 445,996 | |
| | 13,960 | | | @ | | Mardin Cimento Sanayii — New | | | 57,477 | |
| | 58,778 | | | @ | | Mardin Cimento Sanayii | | | 285,671 | |
| | 223,752 | | | @ | | Petkim Petrokimya Holding | | | 1,223,209 | |
| | 1 | | | @ | | Petrol Ofisi | | | 3 | |
| | 244,931 | | | @ | | Turk Hava Yollari | | | 1,371,141 | |
| | 8,802 | | | | | Turk Traktor ve Ziraat Makineleri AS | | | 95,069 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,054,730 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 13.9% |
| | 553,400 | | | @ | | Afren PLC | | | 1,732,702 | |
| | 474,060 | | | | | Aggreko PLC | | | 5,523,431 | |
| | 58,233 | | | | | Albemarle & Bond Holdings | | | 248,154 | |
| | 99,500 | | | | | Amec PLC | | | 1,561,925 | |
| | 217,700 | | | | | Amlin PLC | | | 1,184,966 | |
| | 84,039 | | | | | Antofagasta PLC | | | 1,326,557 | |
| | 416,847 | | | | | Ashtead Group PLC | | | 498,105 | |
| | 39,907 | | | @ | | AssetCo PLC | | | 155,356 | |
| | 114,332 | | | | | Atkins WS PLC | | | 2,393,275 | |
| | 24,105 | | | | | Aveva Group PLC | | | 580,473 | |
| | 50,000 | | | @ | | Avocet Mining PLC | | | 162,746 | |
| | 221,585 | | | | | Babcock International Group | | | 2,588,912 | |
| | 1,191,743 | | | | | Beazley Group PLC | | | 3,437,333 | |
| | 635,061 | | | | | Brit Insurance Holdings PLC | | | 3,066,882 | |
| | 86,491 | | | | | Britvic PLC | | | 568,343 | |
| | 37,857 | | | | | BSS Group PLC | | | 291,253 | |
| | 413,200 | | | | | Cable & Wireless PLC | | | 1,219,204 | |
| | 405,617 | | | | | Charter PLC | | | 7,196,231 | |
| | 526,952 | | | | | Chaucer Holdings PLC | | | 935,393 | |
| | 19,059 | | | | | Chemring Group PLC | | | 930,232 | |
| | 50,000 | | | | | Chloride Group PLC | | | 209,653 | |
| | 160,000 | | | @ | | ClinPhone PLC | | | 294,270 | |
| | 145,900 | | | | | Cookson Group PLC | | | 2,045,668 | |
| | 33,914 | | | | | Cranswick PLC | | | 473,435 | |
| | 421,911 | | | @ | | CSR PLC | | | 3,298,117 | |
| | 169,449 | | | | | Dairy Crest Group PLC | | | 1,355,332 | |
| | 519,575 | | | @ | | Dana Petroleum PLC | | | 17,752,954 | |
| | 25,000 | | | | | Dechra Pharmaceuticals PLC | | | 192,621 | |
| | 249,183 | | | | | Dimension Data Holdings PLC | | | 231,824 | |
| | 30,000 | | | | | E2V Technologies PLC | | | 167,614 | |
| | 50,700 | | | | | eaga PLC | | | 122,088 | |
| | 98,070 | | | | | Ferrexpo PLC | | | 687,020 | |
| | 480,000 | | | | | Friends Provident PLC | | | 1,126,995 | |
| | 436,236 | | | | | Future PLC | | | 247,201 | |
| | 387,022 | | | | | Game Group PLC | | | 2,102,514 | |
| | 224,900 | | | | | GKN PLC | | | 1,262,814 | |
| | 11,600 | | | | | Greene King PLC | | | 118,194 | |
| | 5,223 | | | | | Greggs PLC | | | 476,536 | |
| | 42,913 | | | | | Group 4 Securicor PLC | | | 193,642 | |
| | 195,200 | | | | | Halfords Group PLC | | | 1,087,514 | |
| | 20,000 | | | | | Hamworthy KSE | | | 194,489 | |
| | 248,787 | | | | | IG Group Holdings PLC | | | 1,778,001 | |
| | 174,900 | | | | | IMI PLC | | | 1,577,070 | |
| | 90,679 | | | | | Inchcape PLC | | | 766,723 | |
| | 153,400 | | | | | Interserve PLC | | | 1,469,567 | |
| | 116,310 | | | | | Jardine Lloyd Thompson Group PLC | | | 848,082 | |
| | 48,227 | | | | | JKX Oil & Gas PLC | | | 460,205 | |
See Accompanying Notes to Financial Statements
199
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| | | | | | | United Kingdom (continued) |
| | 294,552 | | | | | John Wood Group PLC | | $ | 2,501,567 | |
| | 183,607 | | | | | Keller Group PLC | | | 2,456,512 | |
| | 12,357 | | | | | Kier Group PLC | | | 288,455 | |
| | 63,698 | | | | | Lavendon Group PLC | | | 389,136 | |
| | 40,044 | | | | | Liontrust Asset Management PLC | | | 207,679 | |
| | 105,327 | | | | | Luminar Group Holdings PLC | | | 669,188 | |
| | 2,544 | | | | | Mapeley Ltd. | | | 63,885 | |
| | 30,000 | | | | | Meggitt PLC | | | 175,993 | |
| | 108,994 | | | @ | | Meldex International PLC | | | 137,065 | |
| | 77,153 | | | | | Micro Focus International PLC | | | 356,359 | |
| | 49,849 | | | @ | | NETeller PLC | | | 62,357 | |
| | 1,132,440 | | | | | Northern Foods PLC | | | 1,945,733 | |
| | 28,216 | | | | | Northgate PLC | | | 330,934 | |
| | 40,000 | | | | | Oxford Instruments PLC | | | 168,010 | |
| | 1,307,068 | | | | | Pendragon PLC | | | 1,015,323 | |
| | 351,544 | | | | | Petrofac Ltd. | | | 4,096,191 | |
| | 101,455 | | | | | PZ Cussons PLC | | | 372,159 | |
| | 20,000 | | | | | Quintain Estates & Development PLC | | | 160,793 | |
| | 523,100 | | | | | Regus Group PLC | | | 953,749 | |
| | 30,000 | | | | | Ricardo PLC | | | 198,441 | |
| | 52,538 | | | | | Rotork PLC | | | 1,113,649 | |
| | 415,515 | | | | | Savills PLC | | | 2,229,781 | |
| | 77,300 | | | | | Severn Trent PLC | | | 2,232,257 | |
| | 88,159 | | | | | Sibir Energy PLC | | | 1,089,641 | |
| | 13,000 | | | | | SIG PLC | | | 193,327 | |
| | 295,181 | | | | | Smiths News PLC | | | 594,419 | |
| | 149,800 | | | | | Southern Cross Healthcare Ltd. | | | 1,004,181 | |
| | 85,290 | | | | | Spectris PLC | | | 1,286,822 | |
| | 159,420 | | | | | Spice PLC | | | 1,750,213 | |
| | 876,900 | | | @ | | Spirent Communications PLC | | | 1,222,192 | |
| | 1,520,091 | | | @ | | Sportingbet PLC | | | 1,294,952 | |
| | 36,000 | | | | | St. Ives Group PLC | | | 168,731 | |
| | 284,546 | | | | | Stagecoach Group PLC | | | 1,440,873 | |
| | 26,050 | | | | | Stolt-Nielsen SA | | | 579,120 | |
| | 712,893 | | | | | Taylor Nelson Sofres PLC | | | 2,852,607 | |
| | 62,718 | | | | | Thomas Cook Group PLC | | | 320,816 | |
| | 13,397 | | | @ | | THUS Group PLC | | | 32,879 | |
| | 186,263 | | | | | Trinity Mirror PLC | | | 998,470 | |
| | 151,400 | | | | | TUI Travel PLC | | | 708,351 | |
| | 34,963 | | | | | Ultra Electronics Holdings | | | 890,749 | |
| | 22,500 | | | | | United Business Media PLC | | | 255,928 | |
| | 17,931 | | | | | Venture Production PLC | | | 263,307 | |
| | 65,677 | | | | | Vislink PLC | | | 41,577 | |
| | 95,200 | | | I | | Vitec Group PLC | | | 858,972 | |
| | 32,000 | | | | | Vitec Group PLC | | | 288,730 | |
| | 164,386 | | | | | VT Group PLC | | | 2,202,410 | |
| | 40,000 | | | | | Wetherspoon (J.D.) PLC | | | 215,348 | |
| | 441,250 | | | | | WH Smith PLC | | | 3,729,113 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 122,550,560 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $814,076,410 ) | | | 840,486,253 | |
| | | | | | | | | | | |
| |
REAL ESTATE INVESTMENT TRUSTS: 0.6% |
| | | | | | | |
| | | | | | | Australia: 0.5% |
| | 350,000 | | | | | Commonwealth Property Office Fund | | | 462,631 | |
| | 6,645,774 | | | | | Macquarie DDR Trust | | | 3,653,276 | |
| | 523,514 | | | | | Macquarie Office Trust | | | 505,095 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,621,002 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.1% |
| | 7,203 | | | | | Nieuwe Steen Investments Funds NV | | | 208,416 | |
| | 25,786 | | | | | Vastned Offices | | | 846,958 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,055,374 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts | | | | |
| | | | | | | (Cost $9,093,094 ) | | | | | | | 5,676,376 | |
| | | | | | | | | | | | | | | |
| |
PREFERRED STOCK: 1.0% |
| | | | | | | |
| | | | | | | Brazil: 0.3% |
| | 81,200 | | | | | Braskem SA | | | 691,241 | |
| | 46,500 | | | | | Cia Paranaense de Energia | | | 821,065 | |
| | 15,250 | | | | | Metalurgica Gerdau SA | | | 803,694 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,316,000 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 0.2% |
| | 6,643 | | | | | Draegerwerk AG | | | 443,035 | |
| | 1,492 | | | | | Eurokai KGaA | | | 174,726 | |
| | 16,103 | | | | | Fresenius AG | | | 1,331,142 | |
| | 3,259 | | | | | Jungheinrich AG | | | 110,260 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,059,163 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 0.5% |
| | 156,601 | | | @ | | Instituto Finanziario Industriale S.p.A. | | | 4,105,695 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,105,695 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $7,668,987 ) | | | 8,480,858 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.0% |
| | | | | | | |
| | | | | | | Sweden: 0.0% |
| | 262,800 | | | I | | JM AB — Rights | | | 221,537 | |
| | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $-) | | | 221,537 | |
| | | | | | | | | | | |
| |
WARRANTS: 0.0% |
| | | | | | | |
| | | | | | | Hong Kong: 0.0% |
| | 20,000 | | | @ | | Industrial & Commercial Bank of China (Asia) Ltd. | | | 5,030 | |
| | | | | | | | | | | |
| | | | | | | Total Warrants
(Cost $-) | | | 5,030 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $830,838,491 ) | | | 854,870,054 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 2.6% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 0.3% |
| $ | 2,771,000 | | | Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 2,770,880 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $2,770,880 ) | | | 2,770,880 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
200
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 2.3% |
| $ | 20,033,988 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | $ | 20,033,988 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral | | | | |
| | | | | | | (Cost $20,033,988 ) | | | | | | | 20,033,988 | |
| | | | | | | | | | | | | | | |
| | | | | Total Short-Term Investments |
| | | | | (Cost $22,804,868) | | | | | | | 22,804,868 | |
| | | | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $853,643,359)* | | | 99.8 | % | | $ | 877,674,922 | |
| | | | | Other Assets and
Liabilities - Net | | | 0.2 | | | | 1,761,895 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 879,436,817 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
| cc | | Securities purchased with cash collateral for securities loaned. |
| I | | Illiquid security |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Fund’s Board of Trustees. |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $854,961,936. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 124,941,962 | |
| Gross Unrealized Depreciation | | | (102,228,976 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 22,712,986 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Advertising | | | 0.4 | % |
| Aerospace/Defense | | | 1.7 | |
| Agriculture | | | 0.8 | |
| Airlines | | | 0.8 | |
| Apparel | | | 0.1 | |
| Auto Manufacturers | | | 1.0 | |
| Auto Parts & Equipment | | | 2.6 | |
| Banks | | | 1.1 | |
| Beverages | | | 0.1 | |
| Building Materials | | | 1.1 | |
| Chemicals | | | 3.6 | |
| Coal | | | 0.9 | |
| Commercial Services | | | 3.2 | |
| Computers | | | 1.5 | |
| Cosmetics/Personal Care | | | 0.2 | |
| Distribution/Wholesale | | | 3.6 | |
| Diversified | | | 0.1 | |
| Diversified Financial Services | | | 2.2 | |
| Electric | | | 1.1 | |
| Electrical Components & Equipment | | | 2.4 | |
| Electronics | | | 2.6 | |
| Energy — Alternate Sources | | | 0.1 | |
| Engineering & Construction | | | 3.9 | |
| Entertainment | | | 0.1 | |
| Environmental Control | | | 0.1 | |
| Food | | | 2.6 | |
| Forest Products & Paper | | | 0.3 | |
| Gas | | | 0.1 | |
| Hand/Machine Tools | | | 2.1 | |
| Healthcare — Products | | | 0.4 | |
| Healthcare — Services | | | 0.9 | |
| Holding Companies — Diversified | | | 1.9 | |
| Home Builders | | | 0.2 | |
| Home Furnishings | | | 1.5 | |
| Household Products/Wares | | | 0.1 | |
| Insurance | | | 5.0 | |
| Internet | | | 0.0 | |
| Investment Companies | | | 0.5 | |
| Iron/Steel | | | 5.6 | |
| Leisure Time | | | 1.1 | |
| Lodging | | | 0.1 | |
| Machinery — Construction & Mining | | | 0.1 | |
| Machinery — Diversified | | | 2.0 | |
| Media | | | 1.4 | |
| Metal Fabricate/Hardware | | | 1.6 | |
| Mining | | | 5.3 | |
| Miscellaneous Manufacturing | | | 2.3 | |
| Office Property | | | 0.1 | |
| Office/Business Equipment | | | 0.6 | |
| Oil & Gas | | | 6.9 | |
| Oil & Gas Services | | | 1.2 | |
| Pharmaceuticals | | | 2.7 | |
| Pipelines | | | 0.0 | |
| Real Estate | | | 3.7 | |
| Retail | | | 4.8 | |
| Semiconductors | | | 0.7 | |
| Shipbuilding | | | 0.0 | |
| Shopping Centers | | | 0.4 | |
| Software | | | 0.8 | |
| Telecommunications | | | 1.7 | |
| Textiles | | | 0.0 | |
| Transportation | | | 2.9 | |
| Trucking & Leasing | | | 0.0 | |
| Water | | | 0.3 | |
| Short-Term Investments | | | 2.6 | |
| Other Assets and Liabilities — Net | | | 0.2 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
At April 30, 2008 the following forward foreign currency contracts were outstanding for the ING International SmallCap Multi-Manager Fund:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | Unrealized
|
| | | | | Settlement
| | Exchange
| | | | Appreciation
|
Currency | | Buy/Sell | | Date | | For | | Value | | (Depreciation) |
| | | | | | | USD | | | | |
| |
| Japanese Yen | | | | | | | | | | | | | | | | | | | | |
| JPY 91,576,515 | | | Buy | | | | 05/07/08 | | | | 876,532 | | | | 881,068 | | | $ | 4,536 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 4,536 | |
| | | | | | | | | | | | | | | | | | | | | |
Japanese Yen
JPY 58,670,207 | | | Sell | | | | 05/07/08 | | | | 561,534 | | | | 564,473 | | | $ | (2,939 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (2,939 | ) |
| | | | | | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
201
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 98.6% |
| | | | | | | |
| | | | | | | Bermuda: 1.6% |
| | 1,816,034 | | | | | Tyco Electronics Ltd. | | $ | 67,937,832 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 67,937,832 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 3.9% |
| | 6,058,831 | | | L | | Centrais Eletricas Brasileiras SA ADR — Class A | | | 87,715,514 | |
| | 3,542,186 | | | L | | Contax Participacoes SA ADR | | | 4,071,034 | |
| | 1,446,454 | | | L | | Tele Norte Leste Participacoes SA ADR | | | 33,138,261 | |
| | 1,144,300 | | | | | Telecomunicacoes Brasileiras SA ADR | | | 24,293,489 | |
| | 57,215 | | | L | | Telemig Celular Participation SA ADR | | | 3,948,407 | |
| | 105,928 | | | L | | Tim Participacoes SA ADR | | | 3,557,062 | |
| | 735,326 | | | @,L | | Vivo Participacoes SA ADR | | | 4,963,451 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 161,687,218 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 0.7% |
| | 3,464,370 | | | @,L | | Nortel Networks Corp. | | | 29,585,720 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 29,585,720 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 10.7% |
| | 12,675,820 | | | | | Alcatel SA | | | 84,841,718 | |
| | 861,236 | | | | | Carrefour SA | | | 60,414,937 | |
| | 1,017,000 | | | | | Credit Agricole SA | | | 34,037,238 | |
| | 2,615,462 | | | | | France Telecom SA | | | 81,840,225 | |
| | 2,413,800 | | | | | Natixis | | | 40,383,304 | |
| | 1,905,550 | | | | | Sanofi-Aventis | | | 146,881,989 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 448,399,411 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 4.8% |
| | 8,786,319 | | | | | Deutsche Telekom AG | | | 157,179,019 | |
| | 389,300 | | | | | Hypo Real Estate Holding AG | | | 14,283,530 | |
| | 3,113,300 | | | @ | | Infineon Technologies AG | | | 28,638,174 | |
| | 530,090 | | | @,L | | Qimonda AG ADR | | | 1,887,120 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 201,987,843 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 3.7% |
| | 10,135,782 | | | | | Intesa Sanpaolo S.p.A. | | | 75,348,238 | |
| | 9,779,185 | | | | | Telecom Italia S.p.A. | | | 20,451,694 | |
| | 35,875,700 | | | | | Telecom Italia S.p.A. RNC | | | 58,401,604 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 154,201,536 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 31.9% |
| | 2,488,400 | | | | | Aiful Corp. | | | 48,513,150 | |
| | 701,000 | | | | | Akita Bank Ltd. | | | 3,082,355 | |
| | 1,092,400 | | | | | Astellas Pharma, Inc. | | | 44,968,004 | |
| | 1,892,000 | | | | | Dai Nippon Printing Co., Ltd. | | | 29,121,330 | |
| | 1,039,736 | | | | | Daiichi Sankyo Co., Ltd. | | | 28,649,088 | |
| | 908,900 | | | | | Fuji Photo Film Co., Ltd. | | | 35,138,630 | |
| | 14,122,700 | | | | | Hitachi Ltd. | | | 95,248,547 | |
| | 2,010,200 | | | | | Millea Holdings, Inc. | | | 85,198,986 | |
| | 13,294,400 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 146,490,747 | |
| | 2,765,400 | | | @ | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 110,100,072 | |
| | 4,006,000 | | | @ | | Mitsui Trust Holdings, Inc. | | | 28,506,780 | |
| | 18,274 | | | @ | | Mizuho Financial Group, Inc. | | | 95,100,620 | |
| | 8,200,000 | | | | | NEC Corp. | | | 39,024,346 | |
| | 20,993 | | | | | Nippon Telegraph & Telephone Corp. | | | 90,411,245 | |
| | 1,111,500 | | | | | Ono Pharmaceutical Co., Ltd. | | | 58,997,839 | |
| | 777,300 | | | | | Rohm Co., Ltd. | | | 54,560,702 | |
| | 3,539,900 | | | | | Seven & I Holdings Co., Ltd. | | | 105,972,090 | |
| | 872,700 | | | | | Sony Corp. | | | 40,235,454 | |
| | 12,669 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 109,021,859 | |
| | 270,000 | | | | | Taisho Pharmaceutical Co., Ltd. | | | 5,159,466 | |
| | 1,891,600 | | | | | Takefuji Corp. | | | 44,743,034 | |
| | 481,900 | | | | | TDK Corp. | | | 32,929,356 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,331,173,700 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.9% |
| | 2,148,020 | | | L | | Telefonos de Mexico SA de CV ADR | | | 77,457,601 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 77,457,601 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 8.0% |
| | 5,564,770 | | | | | Aegon NV | | | 88,689,355 | |
| | 600,500 | | | | | Akzo Nobel NV | | | 50,698,198 | |
| | 5,765,212 | | | | | Koninklijke Ahold NV | | | 85,155,232 | |
| | 846,179 | | | | | SNS Reaal | | | 17,776,883 | |
| | 1,603,300 | | | | | Unilever NV | | | 53,522,662 | |
| | 1,408,332 | | | | | Wolters Kluwer NV | | | 37,587,850 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 333,430,180 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.8% |
| | 11,223,072 | | | | | Telecom Corp. of New Zealand Ltd. | | | 33,103,015 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 33,103,015 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Portugal: 1.9% |
| | 6,516,376 | | | | | Portugal Telecom SGPS SA | | | 77,308,428 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 77,308,428 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 4.3% |
| | 1,463,610 | | | | | Korea Electric Power Corp. | | | 48,849,262 | |
| | 1,306,680 | | | L | | Korea Electric Power Corp. ADR | | | 21,468,752 | |
| | 2,075,610 | | | | | KT Corp. ADR | | | 47,988,103 | |
| | 304,885 | | | | | SK Telecom Co., Ltd. | | | 61,357,053 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 179,663,170 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 0.5% |
| | 795,902 | | | | | Telefonica SA | | | 22,870,200 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,870,200 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 2.5% |
| | 41,448,300 | | | | | Telefonaktiebolaget LM Ericsson | | | 104,697,953 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 104,697,953 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 3.1% |
| | 5,057,600 | | | | | STMicroelectronics NV | | | 58,339,882 | |
| | 471,310 | | | | | Swiss Reinsurance | | | 38,970,592 | |
| | 86,800 | | | | | Swisscom AG | | | 30,794,534 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 128,105,008 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 1.3% |
| | 91,257,655 | | | | | United Microelectronics Corp. | | | 55,828,635 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 55,828,635 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 17.0% |
| | 3,374,180 | | | | | AstraZeneca PLC | | | 141,552,359 | |
| | 2,705,040 | | | | | Barclays PLC | | | 24,458,695 | |
| | 2,807,000 | | | | | British Sky Broadcasting PLC | | | 30,253,202 | |
| | 6,021,251 | | | | | GlaxoSmithKline PLC | | | 133,197,138 | |
| | 4,456,204 | | | | | HSBC Holdings PLC | | | 77,377,020 | |
| | 51,009,626 | | | | | ITV PLC | | | 66,350,142 | |
| | 14,411,400 | | | | | Kingfisher PLC | | | 37,659,790 | |
| | 7,008,351 | | | | | Marks & Spencer Group PLC | | | 52,584,580 | |
| | 9,953,046 | | | | | Royal Bank of Scotland Group PLC | | | 67,365,858 | |
| | 13,849,931 | | | | | WM Morrison Supermarkets PLC | | | 78,384,017 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 709,182,801 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $3,895,269,712) | | | 4,116,620,251 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
202
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
SHORT-TERM INVESTMENTS: 5.1% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 0.7% |
| $ | 29,279,000 | | | L,Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 29,277,739 | |
| | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $29,277,739) | | | 29,277,739 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 4.4% |
| | 184,006,441 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | | 184,006,441 | |
| | | | | | | | | | | |
| | | | | | | Total Securities Lending Collateral
(Cost $184,006,441) | | | 184,006,441 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term
Investments
(Cost $213,284,180) | | | 213,284,180 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $4,108,553,892)* | | | 103.7 | % | | $ | 4,329,904,431 | |
| | | | | Other Assets and
Liabilities - Net | | | (3.7 | ) | | | (154,432,241 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 4,175,472,190 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is the same as for financial statement purposes. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 658,289,737 | |
| Gross Unrealized Depreciation | | | (436,939,198 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 221,350,539 | |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Banks | | | 17.6 | % |
| Chemicals | | | 1.2 | |
| Commercial Services | | | 0.8 | |
| Computers | | | 0.8 | |
| Diversified Financial Services | | | 2.2 | |
| Electric | | | 3.8 | |
| Electrical Components & Equipment | | | 2.3 | |
| Electronics | | | 2.6 | |
| Food | | | 6.7 | |
| Home Furnishings | | | 1.0 | |
| Insurance | | | 7.7 | |
| Media | | | 3.2 | |
| Miscellaneous Manufacturing | | | 0.8 | |
| Pharmaceuticals | | | 13.4 | |
| Retail | | | 4.7 | |
| Semiconductors | | | 4.7 | |
| Telecommunications | | | 25.1 | |
| Short-Term Investments | | | 5.1 | |
| Other Assets and Liabilities — Net | | | (3.7 | ) |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
203
PORTFOLIO OF INVESTMENTS
ING International Value Choice Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 95.1% |
| | | | | | | |
| | | | | | | Australia: 2.9% |
| | 319,456 | | | | | Alumina Ltd. | | $ | 1,728,671 | |
| | 17,500 | | | | | Newcrest Mining Ltd. | | | 480,618 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,209,289 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 1.0% |
| | 16,150 | | | | | Belgacom SA | | | 741,559 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 741,559 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 1.8% |
| | 46,622 | | | | | Centrais Eletricas Brasileiras SA | | | 687,185 | |
| | 46,350 | | | | | Centrais Eletricas Brasileiras SA ADR — Class B | | | 703,616 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,390,801 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Canada: 9.1% |
| | 58,074 | | | | | Barrick Gold Corp. | | | 2,242,818 | |
| | 71,450 | | | @ | | Ivanhoe Mines Ltd. | | | 686,635 | |
| | 55,850 | | | @ | | Novagold Resources, Inc. | | | 409,939 | |
| | 55,450 | | | @ | | OPTI Canada, Inc. | | | 1,173,860 | |
| | 23,350 | | | | | Petro-Canada | | | 1,170,302 | |
| | 10,630 | | | | | Suncor Energy, Inc. | | | 1,197,895 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,881,449 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Cayman Islands: 0.8% |
| | 64,300 | | | @ | | Apex Silver Mines Ltd. | | | 646,215 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 646,215 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 3.1% |
| | 126,300 | | | | | Stora Enso OYJ (Euro Denominated Security) | | | 1,552,011 | |
| | 39,750 | | | | | UPM-Kymmene OYJ | | | 762,321 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,314,332 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 6.9% |
| | 320,550 | | | | | Alcatel SA | | | 2,145,503 | |
| | 121 | | | | | Areva SA | | | 135,064 | |
| | 19,750 | | | | | Sanofi-Aventis | | | 1,522,353 | |
| | 22,230 | | | | | Thales SA | | | 1,447,903 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,250,823 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 2.8% |
| | 99,530 | | | @ | | Premiere AG | | | 2,088,404 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,088,404 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 3.0% |
| | 1,379,790 | | | | | Telecom Italia S.p.A. RNC | | | 2,246,143 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,246,143 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 34.8% |
| | 72,000 | | | | | Coca-Cola West Holdings Co., Ltd. | | | 1,630,020 | |
| | 145,000 | | | | | Dai Nippon Printing Co., Ltd. | | | 2,231,814 | |
| | 60,000 | | | | | Fuji Photo Film Co., Ltd. | | | 2,319,637 | |
| | 62,700 | | | | | JS Group Corp. | | | 1,092,236 | |
| | 86,000 | | | | | Kirin Brewery Co., Ltd. | | | 1,538,598 | |
| | 30,400 | | | | | Mabuchi Motor Co., Ltd. | | | 1,511,188 | |
| | 27,200 | | | @ | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 1,082,925 | |
| | 267,000 | | | | | Nippon Oil Corp. | | | 1,840,065 | |
| | 140,430 | | | | | Nippon Telegraph & Telephone Corp. ADR | | | 3,017,838 | |
| | 122,900 | | | | | Sega Sammy Holdings, Inc. | | | 1,495,924 | |
| | 129,000 | | | | | Sekisui House Ltd. | | | 1,228,004 | |
| | 62,900 | | | | | Seven & I Holdings Co., Ltd. | | | 1,883,004 | |
| | 48,600 | | | | | Shiseido Co., Ltd. | | | 1,170,320 | |
| | 113,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 1,015,981 | |
| | 42,170 | | | | | Takefuji Corp. | | | 997,470 | |
| | 33,000 | | | | | Toppan Printing Co., Ltd. | | | 368,460 | |
| | 52,600 | | | | | Toyo Seikan Kaisha Ltd. | | | 1,033,872 | |
| | 56,000 | | | | | Wacoal Holdings Corp. | | | 805,041 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,262,397 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 6.1% |
| | 83,050 | | | @ | | Gemalto NV | | | 2,666,339 | |
| | 24,142 | | | | | Royal Dutch Shell PLC ADR — Class B | | | 1,924,117 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,590,456 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Papua New Guinea: 0.5% |
| | 135,100 | | | @ | | Lihir Gold Ltd. | | | 383,287 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 383,287 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 6.2% |
| | 84,570 | | | | | Anglogold Ashanti Ltd. ADR | | | 2,885,528 | |
| | 89,850 | | | | | Gold Fields Ltd. | | | 1,201,497 | |
| | 45,150 | | | | | Gold Fields Ltd. ADR | | | 609,525 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,696,550 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 5.3% |
| | 68,930 | | | | | Korea Electric Power Corp. ADR | | | 1,132,520 | |
| | 89,650 | | | | | KT Corp. ADR | | | 2,072,708 | |
| | 34,600 | | | | | SK Telecom Co., Ltd. ADR | | | 780,922 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,986,150 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 1.1% |
| | 32,400 | | | | | Telefonaktiebolaget LM Ericsson ADR | | | 817,128 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 817,128 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 1.2% |
| | 28,100 | | | | | UBS AG — New | | | 943,879 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 943,879 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 5.3% |
| | 27,500 | | | | | AstraZeneca PLC ADR | | | 1,154,450 | |
| | 201,300 | | | | | BP PLC | | | 2,439,298 | |
| | 6,150 | | | | | Lonmin PLC | | | 376,369 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,970,117 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 3.2% |
| | 54,390 | | | | | Newmont Mining Corp. | | | 2,404,582 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,404,582 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $72,872,768) | | | 71,823,561 | |
| | | | | | | | | | | |
| |
RIGHTS: 0.1% |
| | | | | | | |
| | | | | | | Switzerland: 0.1% |
| | 28,100 | | | | | UBS AG — Reg Rights | | | 29,018 | |
| | | | | | | | | | | |
| | | | | | | Total Rights
(Cost $47,829) | | | 29,018 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $72,920,597) | | | 71,852,579 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
204
PORTFOLIO OF INVESTMENTS
ING International Value Choice Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Principal Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 4.7% |
| | | | | | | |
| | | | | | | U.S. Government Agency Obligations: 4.7% |
| $ | 3,574,000 | | | Z | | Federal Home Loan Bank, 1.550%, due 05/01/08 | | $ | 3,573,846 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $3,573,846) | | | 3,573,846 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $76,494,443)* | | | 99.9 | % | | $ | 75,426,425 | |
| | | | | Other Assets and
Liabilities - Net | | | 0.1 | | | | 75,867 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 75,502,292 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| | | |
| * | | Cost for federal income tax purposes is $77,073,107. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 4,807,107 | |
| Gross Unrealized Depreciation | | | (6,453,789 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (1,646,682 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 1.9 | % |
| Apparel | | | 1.1 | |
| Banks | | | 1.3 | |
| Beverages | | | 4.2 | |
| Building Materials | | | 1.4 | |
| Commercial Services | | | 3.4 | |
| Computers | | | 3.5 | |
| Cosmetics/Personal Care | | | 1.6 | |
| Diversified Financial Services | | | 2.7 | |
| Electric | | | 3.3 | |
| Electronics | | | 2.0 | |
| Energy — Alternate Sources | | | 0.2 | |
| Forest Products & Paper | | | 3.1 | |
| Home Builders | | | 1.6 | |
| Insurance | | | 1.4 | |
| Leisure Time | | | 2.0 | |
| Media | | | 2.8 | |
| Mining | | | 18.6 | |
| Miscellaneous Manufacturing | | | 3.1 | |
| Oil & Gas | | | 12.9 | |
| Packaging & Containers | | | 1.4 | |
| Pharmaceuticals | | | 3.5 | |
| Retail | | | 2.5 | |
| Telecommunications | | | 15.7 | |
| Short-Term Investments | | | 4.7 | |
| Other Assets and Liabilities — Net | | | 0.1 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
205
PORTFOLIO OF INVESTMENTS
ING International Value Opportunities Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 94.5% |
| | | | | | | |
| | | | | | | Australia: 1.0% |
| | 23,000 | | | | | Telstra Corp., Ltd. | | $ | 98,724 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 98,724 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belgium: 5.9% |
| | 950 | | | | | Delhaize Group | | | 81,944 | |
| | 3,425 | | | | | Dexia | | | 94,534 | |
| | 10,916 | | | | | Fortis | | | 296,246 | |
| | 3,866 | | | @ | | Fortis — Strip VVPR | | | 60 | |
| | 4,800 | | | | | Melexis NV | | | 78,669 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 551,453 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Denmark: 1.0% |
| | 2,600 | | | | | Danske Bank A/S | | | 89,513 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 89,513 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Finland: 2.8% |
| | 2,163 | | | | | Fortum OYJ | | | 91,503 | |
| | 1,800 | | | | | Outokumpu OYJ | | | 85,107 | |
| | 4,550 | | | | | UPM-Kymmene OYJ | | | 87,259 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 263,869 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | France: 12.8% |
| | 1,040 | | | | | BNP Paribas | | | 110,869 | |
| | 2,000 | | | | | Bouygues SA | | | 148,220 | |
| | 3,340 | | | | | Sanofi-Aventis | | | 257,451 | |
| | 750 | | | | | Societe Generale | | | 87,124 | |
| | 4,050 | | | | | Total SA | | | 339,253 | |
| | 6,550 | | | | | Vivendi | | | 264,079 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,206,996 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Germany: 9.5% |
| | 1,000 | | | | | Allianz AG | | | 202,712 | |
| | 2,600 | | | | | Commerzbank AG | | | 93,361 | |
| | 3,100 | | | | | Deutsche Lufthansa AG | | | 81,796 | |
| | 5,650 | | | | | Deutsche Post AG | | | 175,572 | |
| | 7,300 | | | | | Deutsche Telekom AG | | | 130,590 | |
| | 640 | | | | | E.ON AG | | | 130,109 | |
| | 1,700 | | | | | MTU Aero Engines Holding AG | | | 77,062 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 891,202 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Greece: 0.7% |
| | 1,800 | | | | | OPAP SA | | | 70,023 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 70,023 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 1.6% |
| | 5,100 | | | | | Hang Seng Bank Ltd. | | | 101,889 | |
| | 9,500 | | | | | Kingboard Chemicals Holdings | | | 44,829 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 146,718 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 1.4% |
| | 10,900 | | | | | Smurfit Kappa PLC | | | 135,788 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 135,788 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Italy: 6.5% |
| | 12,500 | | | | | Enel S.p.A. | | | 135,627 | |
| | 5,800 | | | | | ENI S.p.A. | | | 223,234 | |
| | 48,300 | | | | | Telecom Italia S.p.A. RNC | | | 78,627 | |
| | 23,000 | | | | | UniCredito Italiano S.p.A. | | | 173,342 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 610,830 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Japan: 15.6% |
| | 2,100 | | | | | Aoyama Trading Co., Ltd. | | | 47,669 | |
| | 2,700 | | | | | Canon Sales Co., Inc. | | | 52,449 | |
| | 3,100 | | | | | Chubu Electric Power Co., Inc. | | | 72,802 | |
| | 2,400 | | | | | Daiichi Sankyo Co., Ltd. | | | 66,130 | |
| | 9 | | | | | East Japan Railway Co. | | | 71,819 | |
| | 6,300 | | | | | EDION Corp. | | | 63,857 | |
| | 13,000 | | | | | Furukawa Electric Co., Ltd. | | | 47,224 | |
| | 4,000 | | | | | Honda Motor Co., Ltd. | | | 127,666 | |
| | 7,000 | | | | | Itochu Corp. | | | 73,315 | |
| | 7 | | | | | KDDI Corp. | | | 44,968 | |
| | 9,000 | | | | | Mitsubishi Materials Corp. | | | 42,749 | |
| | 20,000 | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 220,380 | |
| | 5,000 | | | | | Onward Kashiyama Co., Ltd. | | | 56,877 | |
| | 5,000 | | | | | Ricoh Co., Ltd. | | | 86,554 | |
| | 1,400 | | | | | Sankyo Co., Ltd. | | | 84,325 | |
| | 205 | | | | | Softbank Investment Corp. | | | 53,900 | |
| | 13,700 | | | | | Sojitz Corp. | | | 52,772 | |
| | 9,000 | | | | | Sumitomo Trust & Banking Co., Ltd. | | | 80,919 | |
| | 3,000 | | | | | Tohoku Electric Power Co., Inc. | | | 68,238 | |
| | 15,000 | | | | | Tokyo Gas Co., Ltd. | | | 57,626 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,472,239 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 7.2% |
| | 3,300 | | | | | European Aeronautic Defence and Space Co. NV | | | 82,317 | |
| | 10,150 | | | | | Royal Dutch Shell PLC — Class A | | | 407,957 | |
| | 10,250 | | | | | Royal KPN NV | | | 187,130 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 677,404 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | New Zealand: 0.8% |
| | 25,777 | | | | | Telecom Corp. of New Zealand Ltd. | | | 76,031 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 76,031 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Norway: 0.9% |
| | 6,000 | | | | | DnB NOR ASA | | | 89,072 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 89,072 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Spain: 6.2% |
| | 5,225 | | | | | Banco Bilbao Vizcaya Argentaria SA | | | 119,836 | |
| | 12,700 | | | | | Banco Santander Central Hispano SA | | | 274,651 | |
| | 3,950 | | | | | Ebro Puleva SA | | | 81,523 | |
| | 7,350 | | | | | Iberdrola SA | | | 107,101 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 583,111 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sweden: 0.9% |
| | 34,000 | | | | | Telefonaktiebolaget LM Ericsson | | | 85,884 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 85,884 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Switzerland: 2.1% |
| | 160 | | | | | Nestle SA | | | 76,365 | |
| | 1,450 | | | | | Swiss Reinsurance | | | 119,894 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 196,259 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Taiwan: 0.8% |
| | 6,800 | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 76,432 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 76,432 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United Kingdom: 14.7% |
| | 9,500 | | | | | Aviva PLC | | | 118,017 | |
| | 9,900 | | | | | Barclays PLC | | | 89,515 | |
| | 21,300 | | | | | BP PLC | | | 258,108 | |
| | 5,050 | | | | | HBOS PLC | | | 46,624 | |
| | 21,550 | | | | | HSBC Holdings PLC | | | 374,193 | |
| | 53,500 | | | | | ITV PLC | | | 69,589 | |
| | 35,000 | | | | | Legal & General Group PLC | | | 87,762 | |
| | 14,200 | | | | | Royal Bank of Scotland Group PLC | | | 96,111 | |
| | 12,500 | | | | | Tate & Lyle PLC | | | 130,811 | |
| | 35,000 | | | | | Vodafone Group PLC | | | 110,763 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,381,493 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | United States: 2.1% |
| | 1,800 | | | | | AT&T, Inc. | | | 69,678 | |
| | 3,800 | | | | | General Electric Co. | | | 124,260 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 193,938 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $9,380,478) | | | 8,896,979 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
206
PORTFOLIO OF INVESTMENTS
ING International Value Opportunities Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
REAL ESTATE INVESTMENT TRUSTS: 0.9% |
| | | | | | | |
| | | | | | | Germany: 0.9% |
| | 4,300 | | | @ | | Alstria Office AG | | $ | 82,171 | |
| | | | | | | | | | | |
| | | | | | | Total Real Estate Investment Trusts
(Cost $91,714) | | | 82,171 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 0.7% |
| | | | | | | |
| | | | | | | Italy: 0.7% |
| | 23,993 | | | | | Unipol S.p.A. | | | 69,694 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $82,594) | | | 69,694 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $9,554,786)* | | | 96.1 | % | | $ | 9,048,844 | |
| | | | | Other Assets and
Liabilities - Net | | | 3.9 | | | | 369,988 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 9,418,832 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| ADR | | American Depositary Receipt |
| STRIP | | Separate Trading of Registered Interest and Principal of Securities |
| | | |
| * | | Cost for federal income tax purposes is $9,559,338. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 448,239 | |
| Gross Unrealized Depreciation | | | (958,733 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (510,494 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Aerospace/Defense | | | 1.7 | % |
| Airlines | | | 0.9 | |
| Apparel | | | 0.6 | |
| Auto Manufacturers | | | 1.4 | |
| Banks | | | 25.9 | |
| Chemicals | | | 0.5 | |
| Distribution/Wholesale | | | 1.9 | |
| Electric | | | 6.4 | |
| Electrical Components & Equipment | | | 0.5 | |
| Engineering & Construction | | | 1.6 | |
| Entertainment | | | 0.7 | |
| Food | | | 3.9 | |
| Forest Products & Paper | | | 2.4 | |
| Gas | | | 0.6 | |
| Insurance | | | 6.3 | |
| Internet | | | 0.6 | |
| Iron/Steel | | | 0.9 | |
| Leisure Time | | | 0.9 | |
| Media | | | 3.5 | |
| Mining | | | 0.5 | |
| Miscellaneous Manufacturing | | | 1.3 | |
| Office Property | | | 0.9 | |
| Office/Business Equipment | | | 0.9 | |
| Oil & Gas | | | 13.0 | |
| Pharmaceuticals | | | 3.4 | |
| Retail | | | 1.2 | |
| Semiconductors | | | 1.7 | |
| Telecommunications | | | 9.4 | |
| Transportation | | | 2.6 | |
| Other Assets and Liabilities — Net | | | 3.9 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
207
PORTFOLIO OF INVESTMENTS
ING Russia Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
COMMON STOCK: 96.5% |
| | | | | | | |
| | | | | | | Banks: 14.6% |
| | 1,709,000 | | | @@ | | Bank St. Petersburg BRD — Class S | | $ | 9,741,300 | |
| | 37,387,000 | | | @@ | | Sberbank RF | | | 121,192,951 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 130,934,251 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Beverages: 1.2% |
| | 352,000 | | | @,@@ | | Efes Breweries International NV GDR | | | 10,919,603 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,919,603 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Chemicals: 3.0% |
| | 500,000 | | | @,@@ | | Uralkali GDR | | | 26,526,299 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 26,526,299 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Coal: 1.1% |
| | 1,200,000 | | | @@ | | Raspadskaya — Class S | | | 10,121,604 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 10,121,604 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Cosmetics/Personal Care: 0.7% |
| | 193,500 | | | @@ | | Kalina | | | 6,192,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,192,000 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Electric: 0.0% |
| | 428,242,036 | | | @@ | | TGK-5 | | | 308,334 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 308,334 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Food: 2.1% |
| | 154,800 | | | @@,L | | Wimm-Bill-Dann Foods OJSC ADR | | | 18,839,160 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,839,160 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Internet: 1.3% |
| | 1,344,122 | | | @,@@ | | RBC Information Systems | | | 11,300,496 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 11,300,496 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Iron/Steel: 7.9% |
| | 150,000 | | | @@ | | Evraz Group SA GDR — Reg S | | | 15,485,531 | |
| | 209,300 | | | @@,L | | Mechel OAO ADR | | | 30,515,940 | |
| | 3,450,000 | | | @@ | | Novolipetsk Steel | | | 16,163,999 | |
| | 192,000 | | | @@,L | | Novolipetsk Steel GDR | | | 8,482,300 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 70,647,770 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Metal Fabricate/Hardware: 2.5% |
| | 450,000 | | | @@,L | | TMK OAO GDR | | | 14,771,421 | |
| | 37,700 | | | @@ | | Vsmpo-Avisma Corp. | | | 8,143,200 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 22,914,621 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mining: 7.1% |
| | 299,964 | | | @,@@ | | Eurasian Natural Resources Corp. | | | 7,157,053 | |
| | 1,500,000 | | | @@ | | MMC Norilsk Nickel ADR | | | 40,247,061 | |
| | 310,000 | | | @@,L | | Polyus Gold Co. ZAO ADR | | | 16,481,911 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 63,886,025 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Oil & Gas: 43.3% |
| | 1,296,200 | | | @@,L | | Lukoil-Spon ADR | | | 116,477,696 | |
| | 362,000 | | | @@ | | Novatek OAO GDR | | | 27,266,172 | |
| | 7,030,000 | | | @@ | | OAO Gazprom | | | 92,183,841 | |
| | 1,141,700 | | | @@,L | | OAO Gazprom ADR | | | 60,409,274 | |
| | 4,546,200 | | | @,@@ | | OAO Rosneft Oil Co. GDR | | | 44,244,319 | |
| | 2,385,000 | | | @,@@,
L | | Surgutneftegaz ADR | | | 23,064,367 | |
| | 192,000 | | | @@,L | | Tatneft GDR | | | 24,479,245 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 388,124,914 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pharmaceuticals: 1.4% |
| | 500,000 | | | @,@@ | | Pharmstandard — Reg S GDR | | | 12,459,801 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,459,801 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Real Estate: 2.7% |
| | 845,700 | | | @,@@,
L | | LSR Group GDR | | | 13,486,714 | |
| | 45,000 | | | @,@@ | | Open Investments | | | 11,151,244 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 24,637,958 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Retail: 1.9% |
| | 387,000 | | | @,@@ | | Magnit OAO | | | 16,894,901 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 16,894,901 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Telecommunications: 5.6% |
| | 700,000 | | | @,@@ | | Comstar United Telesystems GDR | | | 6,890,174 | |
| | 188,800 | | | @@,L | | Mobile Telesystems Finance SA ADR | | | 14,647,104 | |
| | 137,000 | | | @@ | | Moscow City Telephone | | | 4,534,700 | |
| | 96,900,000 | | | @@ | | Sibirtelecom | | | 8,146,383 | |
| | 108,000,000 | | | @@ | | Uralsvyazinform | | | 5,015,844 | |
| | 2,400,000 | | | @@ | | VolgaTelecom | | | 10,752,096 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 49,986,301 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Transportation: 0.1% |
| | 6,060,000 | | | @@ | | Novorossiysk Sea Trade Port BRD | | | 1,221,090 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,221,090 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Common Stock
(Cost $573,593,840) | | | 865,915,128 | |
| | | | | | | | | | | |
| |
MUTUAL FUNDS: 0.8% |
| | | | | | | | | | | |
| | 2,384,270 | | | @,@@ | | RenShares Utilities Ltd. | | | 7,510,451 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Funds
(Cost $3,317,280) | | | 7,510,451 | |
| | | | | | | | | | | |
| |
PREFERRED STOCK: 1.1% |
| | | | | | | |
| | | | | | | Oil & Gas: 1.1% |
| | 43,500,000 | | | @@ | | Achinsk Refinery | | | 9,352,500 | |
| | | | | | | | | | | |
| | | | | | | Total Preferred Stock
(Cost $3,106,603) | | | 9,352,500 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $580,017,723) | | | 882,778,079 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
208
PORTFOLIO OF INVESTMENTS
ING Russia Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 19.7% |
| | | | | | | |
| | | | | | | Securities Lending CollateralCC: 19.7% |
| $ | 176,807,367 | | | | | Bank of New York Mellon Corp. Institutional Cash Reserves | | $ | 176,807,367 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $176,807,367) | | | 176,807,367 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $756,825,090)* | | | 118.1 | % | | $ | 1,059,585,446 | |
| | | | | Other Assets and
Liabilities - Net | | | (18.1 | ) | | | (162,347,325 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 897,238,121 | |
| | | | | | | | | | | | | |
Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A).
| | | |
| @ | | Non-income producing security |
| @@ | | Foreign Issuer |
| ADR | | American Depositary Receipt |
| GDR | | Global Depositary Receipt |
| cc | | Securities purchased with cash collateral for securities loaned. |
| L | | Loaned security, a portion or all of the security is on loan at April 30, 2008. |
| | | |
| * | | Cost for federal income tax purposes is $756,980,545. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 312,236,563 | |
| Gross Unrealized Depreciation | | | (9,631,662 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 302,604,901 | |
| | | | | |
See Accompanying Notes to Financial Statements
209
PORTFOLIO OF INVESTMENTS
ING Emerging Markets Fixed Income Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
CORPORATE BONDS/NOTES: 31.1% |
| | | | | | | |
| | | | | | | Argentina: 0.7% |
| $ | 100,000 | | | #,C | | Cia de Transporte de Energia Electrica de Alta Tension SA, 8.875%, due 12/15/16 | | $ | 77,000 | |
| | 200,000 | | | +,# | | Earls Eight Ltd., 8.000% (step rate 9.000%), due 12/31/12 | | | 155,580 | |
| | 810,999 | | | | | Mendoza Province Of, 5.500%, due 09/04/18 | | | 600,139 | |
| | 13,400 | | | +,C | | Transportadora Gas del Norte, 6.500% (step rate 7.500%), due 12/31/12 | | | 10,955 | |
| | 11,390 | | | +,#,
C | | Transportadora Gas del Norte, 6.500% (step rate 7.500%), due 12/31/12 | | | 9,311 | |
| | 20,100 | | | +,C | | Transportadora Gas del Norte, 6.500% (step rate 7.500%), due 12/31/12 | | | 16,432 | |
| | 1,285,000 | | | +,# | | Transportadora Gas Norte, 8.000% (step rate 9.000%), due 12/31/12 | | | 1,024,788 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,894,205 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 6.6% |
| | 1,000,000 | | | | | Banco BMG SA, 9.150%, due 01/15/16 | | | 1,025,000 | |
| | BRL 2,300,000 | | | # | | Banco Do Brasil, 9.750%, due 07/18/17 | | | 1,196,166 | |
| | BRL 1,900,000 | | | | | Banco Safra Ltd., 10.875%, due 04/03/17 | | | 1,050,190 | |
| | BRL 500,000 | | | # | | Banco Safra Ltd., 10.875%, due 04/03/17 | | | 276,366 | |
| | BRL 2,300,000 | | | | | Banco Votorantim, 10.625%, due 04/10/14 | | | 1,281,026 | |
| | BRL 250,000 | | | # | | Banco Votorantim, 10.625%, due 04/10/14 | | | 82,473 | |
| $ | 252,290 | | | | | Citigroup Funding, Inc., 4.010%, due 08/17/10 | | | 377,108 | |
| | 2,401,717 | | | # | | Citigroup Funding, Inc., 6.000%, due 05/18/15 | | | 2,858,364 | |
| | 2,800,000 | | | | | Citigroup Funding, Inc., 9.570%, due 01/03/17 | | | 2,924,423 | |
| | 2,990,000 | | | C | | Petrobras International Finance Co., 5.875%, due 03/01/18 | | | 2,992,326 | |
| | 600,000 | | | #,C | | Usiminas Commercial Ltd., 7.250%, due 01/18/18 | | | 619,037 | |
| | 360,000 | | | C | | Usiminas Commercial Ltd., 7.250%, due 01/18/18 | | | 385,684 | |
| | 1,025,000 | | | C | | Vale Overseas Ltd., 6.250%, due 01/23/17 | | | 1,053,188 | |
| | 3,050,000 | | | C | | Vale Overseas Ltd., 6.875%, due 11/21/36 | | | 3,094,530 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 19,215,881 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Chile: 0.2% |
| | 620,000 | | | #,C | | Alto Parana SA, 6.375%, due 06/09/17 | | | 623,596 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 623,596 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Colombia: 1.0% |
| | 835,000 | | | | | Bancolombia SA, 6.875%, due 05/25/17 | | | 826,650 | |
| | 695,000 | | | #,C | | EEB International Ltd., 8.750%, due 10/31/14 | | | 740,175 | |
| | 1,300,000 | | | #,C | | TGI International Ltd., 9.500%, due 10/03/17 | | | 1,389,700 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,956,525 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Dominican Republic: 0.6% |
| | 2,025,785 | | | # | | Standard Bank PLC, 15.000%, due 03/12/12 | | | 1,667,524 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,667,524 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Hong Kong: 0.5% |
| | 800,000 | | | | | Bangkok Bank PCL, 9.025%, due 03/15/29 | | | 881,606 | |
| | 265,000 | | | #,C | | Citic Resources Finance Ltd., 6.750%, due 05/15/14 | | | 252,413 | |
| | 400,000 | | | C | | Citic Resources Finance Ltd., 6.750%, due 05/15/14 | | | 380,000 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,514,019 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | India: 0.2% |
| | 650,000 | | | #,C | | ICICI Bank Ltd, 6.625%, due 10/03/12 | | | 647,746 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 647,746 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 2.6% |
| | 1,300,000 | | | # | | Barclays Bank CLN, due 12/17/12 | | | 1,408,030 | |
| | 1,200,000 | | | # | | Barclays Bank CLN, due 03/17/13 | | | 1,330,080 | |
| | 100,000 | | | #,C | | Excelcomindo Finance Co. BV, 7.125%, due 01/18/13 | | | 99,500 | |
| | 680,000 | | | C | | Indosat Finance Co. BV, 7.125%, due 06/22/12 | | | 696,691 | |
| | 550,000 | | | | | Majapahit Holding BV, 7.250%, due 06/28/17 | | | 522,651 | |
| | 930,000 | | | # | | Majapahit Holding BV, 7.250%, due 06/28/17 | | | 881,175 | |
| | 100,000 | | | # | | Majapahit Holding BV, 7.750%, due 10/17/16 | | | 99,000 | |
| | 650,000 | | | | | Majapahit Holding BV, 7.750%, due 10/17/16 | | | 643,856 | |
| | 2,235,000 | | | # | | Majapahit Holding BV, 7.875%, due 06/29/37 | | | 1,977,975 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,658,958 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ireland: 0.3% |
| | 1,000,000 | | | # | | VIP FIN (Vimpelcom), 9.125%, due 04/30/18 | | | 1,002,498 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,002,498 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Kazakhstan: 1.1% |
| | 600,000 | | | | | HSBK Europe BV, 7.250%, due 05/03/17 | | | 534,180 | |
| | 400,000 | | | # | | HSBK Europe BV, 7.250%, due 05/03/17 | | | 352,000 | |
| | 1,200,000 | | | | | Kazkommerts International BV, 7.500%, due 11/29/16 | | | 911,160 | |
| | 210,000 | | | # | | Kazkommerts International BV, 7.500%, due 11/29/16 | | | 158,550 | |
| | 1,500,000 | | | | | TuranAlem Finance BV, 8.250%, due 01/22/37 | | | 1,224,375 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,180,265 | |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
210
PORTFOLIO OF INVESTMENTS
ING Emerging Markets Fixed Income Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Luxembourg: 0.2% |
| $ | 590,000 | | | | | GAZ Capital SA, 6.510%, due 03/07/22 | | $ | 552,273 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 552,273 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.3% |
| | 2,660,000 | | | #,C | | Pemex Project Funding Master Trust, 5.750%, due 03/01/18 | | | 2,753,100 | |
| | 955,000 | | | # | | Pemex Project Funding Master Trust, 6.625%, due 06/15/35 | | | 999,662 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,752,762 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Netherlands: 0.2% |
| | 500,000 | | | C | | Excelcomindo Finance Co., 7.125%, due 01/18/13 | | | 497,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 497,500 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Nigeria: 0.6% |
| | 400,000 | | | # | | UBS AG, due 12/27/13 | | | 459,242 | |
| | 1,200,000 | | | # | | UBS AG, 0.120%, due 09/04/17 | | | 1,186,358 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,645,600 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Peru: 1.5% |
| | 3,900,000 | | | I | | Banco Credito Del Peru, 7.170%, due 10/15/22 | | | 1,378,931 | |
| | 320,000 | | | #,Z | | Interoceanica IV Finance Ltd., 4.210%, due 11/30/18 | | | 206,720 | |
| | 1,200,000 | | | #,Z | | Interoceanica IV Finance Ltd., 4.390%, due 11/30/25 | | | 563,520 | |
| | 250,000 | | | #,Z | | Peru Enhanced Pass-through Finance Ltd., 3.940%, due 05/31/18 | | | 168,750 | |
| | 3,000,000 | | | Z | | Peru Enhanced Pass-through Finance Ltd., 3.940%, due 05/31/18 | | | 2,032,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,350,421 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Philippines: 1.1% |
| | 2,300,000 | | | | | National Power Corp., 6.875%, due 11/02/16 | | | 2,345,517 | |
| | 305,000 | | | # | | National Power Corp., 6.875%, due 11/02/16 | | | 309,575 | |
| | 450,000 | | | | | National Power Corp., 9.625%, due 05/15/28 | | | 538,875 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,193,967 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 5.1% |
| | 1,200,000 | | | C | | Alfa Bond Issuance PLC for OJSC Alfa Bank, 8.635%, due 02/22/17 | | | 1,117,307 | |
| | 1,150,000 | | | # | | Alfa MTN Markets Ltd. for ABH Finanial Ltd., 8.200%, due 06/25/12 | | | 1,106,875 | |
| | 2,550,000 | | | | | Gaz Capital for Gazprom, 8.625%, due 04/28/34 | | | 2,989,875 | |
| | 1,500,000 | | | +,C | | Kuznetski Capital for Bank of Moscow, 7.500% (step rate 8.961%), due 11/25/15 | | | 1,489,350 | |
| | 545,000 | | | #,C | | Lukoil International Finance BV, 6.656%, due 06/07/22 | | | 483,688 | |
| | 2,400,000 | | | | | Morgan Stanley Bank AG for OAO Gazprom, 9.625%, due 03/01/13 | | | 2,734,800 | |
| | 500,000 | | | | | RSHB Capital SA for OJSC Russian Agricultural Bank, 6.299%, due 05/15/17 | | | 470,800 | |
| | 450,000 | | | # | | RSHB Capital SA for OJSC Russian Agricultural Bank, 6.299%, due 05/15/17 | | | 420,188 | |
| | RUB 25,000,000 | | | | | Sibacademfinance PLC for URSA Bank, 9.125%, due 02/26/10 | | | 1,004,649 | |
| $ | 2,000,000 | | | # | | TransCapitalInvest Ltd. for OJSC AK Transneft, 6.103%, due 06/27/12 | | | 1,921,316 | |
| | 1,205,000 | | | | | UBS Luxembourg SA for OJSC Vimpel Communications, 8.250%, due 05/23/16 | | | 1,183,852 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 14,922,700 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Korea: 0.7% |
| | 1,280,000 | | | C | | Shinhan Bank, 6.819%, due 09/20/36 | | | 1,109,681 | |
| | 1,230,000 | | | C | | Woori Bank, 6.208%, due 05/02/37 | | | 1,026,580 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,136,261 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Trinidad And Tobago: 0.3% |
| | 1,000,000 | | | C | | Petroleum Co. of Trinidad & Tobago Ltd., 6.000%, due 05/08/22 | | | 976,336 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 976,336 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 0.1% |
| | TRY 400,000 | | | | | European Investment Bank, 10.000%, due 01/28/11 | | | 279,664 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 279,664 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ukraine: 1.7% |
| $ | 550,000 | | | | | City of Kiev Ukraine, 8.000%, due 11/06/15 | | | 530,836 | |
| | 1,200,000 | | | | | HSBC Bank PLC for Ukrsibbank, 7.750%, due 12/21/11 | | | 1,200,257 | |
| | 500,000 | | | | | Standard Bank (Nak), 8.125%, due 09/30/09 | | | 482,400 | |
| | 2,600,000 | | | | | UK SPV Credit Finance PLC for JSC Commercial Bank Privatbank, 8.000%, due 02/06/12 | | | 2,397,633 | |
| | 200,000 | | | # | | UK SPV Credit Finance PLC for JSC Commercial Bank Privatbank, 8.000%, due 02/06/12 | | | 184,433 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,795,559 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Venezuela: 4.5% |
| | 7,500,000 | | | C | | Petroleos de Venezuela SA, 5.250%, due 04/12/17 | | | 4,968,750 | |
| | 14,350,000 | | | C | | Petroleos de Venezuela SA, 5.375%, due 04/12/27 | | | 8,071,875 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,040,625 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Corporate Bonds/Notes
(Cost $95,188,937) | | | 90,504,885 | |
| | | | | | | | | | | |
See Accompanying Notes to Financial Statements
211
PORTFOLIO OF INVESTMENTS
ING Emerging Markets Fixed Income Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
OTHER BONDS: 63.3% |
| | | | | | | |
| | | | | | | Argentina: 6.4% |
| $ | 17,905,000 | | | | | Argentina Government International Bond, due 12/15/35 | | $ | 2,085,933 | |
| | ARS 5,000 | | | | | Argentina Government International Bond, due 12/15/35 | | | 144 | |
| $ | 8,325,000 | | | | | Argentina Government International Bond, due 12/15/35 | | | 952,380 | |
| | ARS 4,000,000 | | | | | Argentina Government International Bond, 2.000%, due 09/30/14 | | | 1,124,699 | |
| | ARS 1,805,231 | | | | | Argentina Government International Bond, 5.830%, due 12/31/33 | | | 533,038 | |
| $ | 5,000,000 | | | | | Argentina Government International Bond, 7.000%, due 10/03/15 | | | 3,612,500 | |
| | 3,575,718 | | | | | Argentina Government International Bond, 8.280%, due 12/31/33 | | | 2,883,817 | |
| | 1,050,000 | | | +,# | | Province of Buenos Aires Argentina, 3.000% (step rate 4.000%), due 05/15/35 | | | 370,650 | |
| | 4,550,000 | | | + | | Province of Buenos Aires Argentina, 3.000% (step rate 4.000%), due 05/15/35 | | | 1,606,150 | |
| | 280,000 | | | # | | Province of Buenos Aires Argentina, 9.375%, due 09/14/18 | | | 210,000 | |
| | 2,200,000 | | | | | Province of Buenos Aires Argentina, 9.375%, due 09/14/18 | | | 1,650,000 | |
| | 4,130,000 | | | | | Province of Buenos Aires Argentina, 9.625%, due 04/18/28 | | | 3,014,900 | |
| | 481,500 | | | # | | Provincia Del Neuquen Titulo Provincial, 8.656%, due 10/18/14 | | | 480,296 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 18,524,507 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Belize: 0.1% |
| | 330,000 | | | +,C | | Belize Government International Bond, 4.250% (step rate 6.000%), due 02/20/29 | | | 241,725 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 241,725 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Bosnia and Herzegovina: 0.2% |
| | EUR 383,469 | | | Z | | Bosnia & Herzegovina Government International Bond, 11.110%, due 12/11/17 | | | 425,125 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 425,125 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Brazil: 7.1% |
| $ | 6,200,000 | | | | | Brazil Government International Bond, 7.125%, due 01/20/37 | | | 7,099,000 | |
| | 275,000 | | | | | Brazil Government International Bond, 8.250%, due 01/20/34 | | | 349,938 | |
| | 1,680,000 | | | | | Brazil Government International Bond, 8.750%, due 02/04/25 | | | 2,154,600 | |
| | 100,000 | | | | | Brazil Government International Bond, 8.875%, due 10/14/19 | | | 129,120 | |
| | 600,000 | | | | | Brazil Government International Bond, 10.125%, due 05/15/27 | | | 869,190 | |
| | 3,000,000 | | | C | | Brazil Government International Bond, 11.000%, due 08/17/40 | | | 4,092,750 | |
| | 2,705,000 | | | | | Brazil Government International Bond, 12.500%, due 01/05/16 | | | 1,659,909 | |
| | 475,000 | | | | | Federal Republic of Brazil, 8.875%, due 04/15/24 | | | 609,188 | |
| | BRL 4,295,000 | | | | | Federal Republic of Brazil, 12.500%, due 01/05/16 | | | 2,687,282 | |
| $ | 900,000 | | | C | | Federative Republic of Brazil, 6.000%, due 01/17/17 | | | 942,750 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,593,727 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Colombia: 3.2% |
| | 50,000 | | | | | Colombia Government International Bond, 10.000%, due 01/23/12 | | | 59,250 | |
| | 53,000 | | | | | Colombia Government International Bond, 11.750%, due 02/25/20 | | | 79,235 | |
| | 5,080,000 | | | | | Republic of Colombia, 7.375%, due 01/27/17 | | | 5,732,780 | |
| | 2,055,000 | | | | | Republic of Colombia, 8.125%, due 05/21/24 | | | 2,440,313 | |
| | COP 2,061,000,000 | | | | | Republic of Colombia, 9.850%, due 06/28/27 | | | 1,106,222 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 9,417,800 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Dominican Republic: 1.7% |
| $ | 2,267,927 | | | | | Dominican Republic, 9.040%, due 01/23/18 | | | 2,460,701 | |
| | 250,000 | | | # | | Dominican Republic International Bond, 8.625%, due 04/20/27 | | | 267,500 | |
| | 1,865,000 | | | | | Dominican Republic International Bond, 8.625%, due 04/20/27 | | | 1,995,550 | |
| | 143,584 | | | | | Standard Bank PLC, 16.000%, due 07/20/09 | | | 141,944 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,865,695 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | El Salvador: 1.9% |
| | 200,000 | | | # | | El Salvador Government International Bond, 7.650%, due 06/15/35 | | | 215,000 | |
| | 2,430,000 | | | | | El Salvador Government International Bond, 7.650%, due 06/15/35 | | | 2,612,250 | |
| | 2,440,000 | | | | | El Salvador Government International Bond, 8.250%, due 04/10/32 | | | 2,806,000 | |
| | | | | | | | | | | | | | 5,633,250 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ghana: 0.3% |
| | 900,000 | | | # | | Republic of Ghana, 8.500%, due 10/04/17 | | | 942,750 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 942,750 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Indonesia: 2.9% |
| | 200,000 | | | # | | Indonesia Government International Bond, 6.625%, due 02/17/37 | | | 176,840 | |
| | 1,900,000 | | | | | Indonesia Government International Bond, 6.625%, due 02/17/37 | | | 1,693,352 | |
See Accompanying Notes to Financial Statements
212
PORTFOLIO OF INVESTMENTS
ING Emerging Markets Fixed Income Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Indonesia (continued) |
| $ | 835,000 | | | # | | Indonesia Government International Bond, 6.875%, due 01/17/18 | | $ | 859,006 | |
| | 3,000,000 | | | | | Indonesia Government International Bond, 7.500%, due 01/15/16 | | | 3,213,591 | |
| | 880,000 | | | # | | Indonesia Government International Bond, 7.750%, due 01/17/38 | | | 886,600 | |
| | 1,470,000 | | | | | Indonesia Government International Bond, 8.500%, due 10/12/35 | | | 1,612,245 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 8,441,634 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Iraq: 2.2% |
| | 9,050,000 | | | C | | Republic of Iraq, 5.800%, due 01/15/28 | | | 6,220,608 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,220,608 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ivory Coast: 0.0% |
| | 210,000 | | | ± | | Ivory Coast Government International Bond, 3.000%, due 03/30/18 | | | 75,600 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 75,600 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Lebanon: 0.1% |
| | 210,000 | | | | | Lebanon Government International Bond, 8.250%, due 04/12/21 | | | 196,350 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 196,350 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Mexico: 1.8% |
| | 1,000,000 | | | C | | Mexico Government International Bond, 5.625%, due 01/15/17 | | | 1,053,500 | |
| | 2,100,000 | | | | | Mexico Government International Bond, 7.500%, due 04/08/33 | | | 2,537,430 | |
| | 1,300,000 | | | | | Mexico Government International Bond, 8.300%, due 08/15/31 | | | 1,693,250 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,284,180 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Nigeria: 0.7% |
| | 500,000 | | | | | Central Bank of Nigeria, 5.092%, due 01/05/10 | | | 68,750 | |
| | 2,000,000 | | | | | UBS AG, 9.850%, due 08/02/17 | | | 2,064,564 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,133,314 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Pakistan: 1.4% |
| | 4,210,000 | | | | | Islamic Republic of Pakistan, 6.875%, due 06/01/17 | | | 3,589,025 | |
| | 610,000 | | | | | Pakistan Government International Bond, 7.125%, due 03/31/16 | | | 528,632 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,117,657 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Panama: 1.1% |
| | 50,000 | | | | | Panama Government International Bond, 6.700%, due 01/26/36 | | | 52,125 | |
| | 1,595,000 | | | | | Panama Government International Bond, 7.125%, due 01/29/26 | | | 1,770,450 | |
| | 1,000,000 | | | | | Panama Government International Bond, 8.875%, due 09/30/27 | | | 1,305,000 | |
| | 130,000 | | | | | Panama Government International Bond, 9.375%, due 04/01/29 | | | 176,150 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,303,725 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Peru: 2.2% |
| | 2,600,000 | | | | | Peru Government International Bond, 6.550%, due 03/14/37 | | | 2,736,500 | |
| | PEN 5,000,000 | | | # | | Peru Government International Bond, 6.900%, due 08/12/37 | | | 1,752,748 | |
| $ | 1,420,000 | | | | | Peru Government International Bond, 7.350%, due 07/21/25 | | | 1,664,950 | |
| | 220,000 | | | | | Peru Government International Bond, 8.750%, due 11/21/33 | | | 292,600 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 6,446,798 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Philippines: 5.3% |
| | 3,630,000 | | | | | Philippine Government International Bond, 7.750%, due 01/14/31 | | | 4,110,975 | |
| | 1,750,000 | | | | | Philippine Government International Bond, 8.000%, due 01/15/16 | | | 2,012,500 | |
| | 4,500,000 | | | | | Philippine Government International Bond, 8.250%, due 01/15/14 | | | 5,169,150 | |
| | 1,100,000 | | | | | Philippine Government International Bond, 8.875%, due 03/17/15 | | | 1,310,375 | |
| | 2,000,000 | | | | | Philippine Government International Bond, 9.000%, due 02/15/13 | | | 2,337,600 | |
| | 270,000 | | | | | Philippine Government International Bond, 9.875%, due 01/15/19 | | | 348,300 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 15,288,900 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Russia: 7.5% |
| | 10,327,725 | | | + | | Russia Government International Bond, 7.500%, due 03/31/30 | | | 11,893,063 | |
| | 5,500,000 | | | | | Russia Government International Bond, 12.750%, due 06/24/28 | | | 9,909,367 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 21,802,430 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | South Africa: 1.2% |
| | 3,505,000 | | | | | South Africa Government International Bond, 5.875%, due 05/30/22 | | | 3,330,188 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 3,330,188 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Sri Lanka: 0.1% |
| | 370,000 | | | # | | Democratic Socialist Republic of Sri Lanka, 8.250%, due 10/24/12 | | | 338,550 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 338,550 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Turkey: 7.2% |
| | 6,250,000 | | | | | Republic of Turkey, 7.000%, due 09/26/16 | | | 6,429,688 | |
| | 1,000,000 | | | | | Turkey Government International Bond, 6.875%, due 03/17/36 | | | 930,100 | |
See Accompanying Notes to Financial Statements
213
PORTFOLIO OF INVESTMENTS
ING Emerging Markets Fixed Income Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Turkey (continued) |
| $ | 220,000 | | | | | Turkey Government International Bond, 7.250%, due 03/15/15 | | $ | 230,175 | |
| | 4,250,000 | | | | | Turkey Government International Bond, 7.375%, due 02/05/25 | | | 4,329,688 | |
| | 1,530,000 | | | | | Turkey Government International Bond, 8.000%, due 02/14/34 | | | 1,627,538 | |
| | 4,000,000 | | | | | Turkey Government International Bond, 9.500%, due 01/15/14 | | | 4,630,000 | |
| | TRY 3,080,000 | | | | | Turkey Government International Bond, 10.000%, due 02/15/12 | | | 2,695,653 | |
| | TRY 130,000 | | | | | Turkey Government International Bond, 14.000%, due 01/19/11 | | | 95,683 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 20,968,525 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Ukraine: 1.6% |
| $ | 1,400,000 | | | | | Credit Suisse First Boston International for CJSC The EXIM of Ukraine, 6.800%, due 10/04/12 | | | 1,352,260 | |
| | 1,500,000 | | | | | Credit Suisse First Boston International for CJSC The EXIM of Ukraine, 7.650%, due 09/07/11 | | | 1,501,307 | |
| | 470,000 | | | | | Ukraine Government International Bond, 6.580%, due 11/21/16 | | | 461,091 | |
| | 1,180,000 | | | | | Ukraine Government International Bond, 7.650%, due 06/11/13 | | | 1,267,910 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,582,568 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Uruguay: 2.7% |
| | 205,000 | | | | | Oriental Republic of Uruguay, 7.625%, due 03/21/36 | | | 217,300 | |
| | 100,000 | | | | | Uruguay Government International Bond, 7.500%, due 03/15/15 | | | 109,650 | |
| | 3,517,500 | | | & | | Uruguay Government International Bond, 7.875%, due 01/15/33 | | | 3,834,075 | |
| | 3,300,000 | | | | | Uruguay Government International Bond, 8.000%, due 11/18/22 | | | 3,679,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 7,840,525 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Venezuela: 4.4% |
| | 2,200,000 | | | | | Bolivarian Republic of Venezuela, 9.375%, due 01/13/34 | | | 1,996,500 | |
| | 1,400,000 | | | | | Republic of Venezuela, 6.000%, due 12/09/20 | | | 983,500 | |
| | 2,400,000 | | | | | Republic of Venezuela, 7.000%, due 03/31/38 | | | 1,663,440 | |
| | 3,000,000 | | | | | Venezuela Government International Bond, 5.750%, due 02/26/16 | | | 2,377,500 | |
| | 4,900,000 | | | | | Venezuela Government International Bond, 7.000%, due 12/01/18 | | | 3,944,500 | |
| | 1,500,000 | | | | | Venezuela Government International Bond, 7.650%, due 04/21/25 | | | 1,154,850 | |
| | 300,000 | | | | | Venezuela Government International Bond, 8.500%, due 10/08/14 | | | 282,000 | |
| | 75,000 | | | | | Venezuela Government International Bond, 9.250%, due 09/15/27 | | | 68,438 | |
| | 340,000 | | | | | Venezuela Government International Bond, 13.625%, due 08/15/18 | | | 408,850 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 12,879,578 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Other Bonds
(Cost $188,995,357) | | | 183,895,709 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $284,184,294)* | | | 94.4 | % | | $ | 274,400,594 | |
| | | | | Other Assets and
Liabilities - Net | | | 5.6 | | | | 16,422,961 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 290,823,555 | |
| | | | | | | | | | | | | |
| | | |
| Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A). |
| | | |
| & | | Payment-in-kind |
| + | | Step-up basis bonds. Interest rates shown reflect current and next coupon rates. |
| # | | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. |
| C | | Bond may be called prior to maturity date. |
| I | | Illiquid security |
| ± | | Defaulted security |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| ARS | | Argentine Peso |
| BRL | | Brazilian Real |
| COP | | Colombian Peso |
| EUR | | Euro |
| PEN | | Peruvian Nuevo Sol |
| RUB | | Russian Ruble |
| TRY | | Turkish Lira |
| | | |
| * | | Cost for federal income tax purposes is $284,258,892. |
| | | |
| | | Net unrealized depreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 4,871,850 | |
| Gross Unrealized Depreciation | | | (14,730,148 | ) |
| | | | | |
| Net Unrealized Depreciation | | $ | (9,858,298 | ) |
| | | | | |
| | | | | |
| | | Percentage of
|
| Industry | | Net Assets |
|
| |
| Banks | | | 7.4 | % |
| Diversified Financial Services | | | 7.1 | |
| Electric | | | 2.8 | |
| Foreign Government Bonds | | | 63.2 | |
| Forest Products & Paper | | | 0.2 | |
| Gas | | | 0.4 | |
| Iron/Steel | | | 0.3 | |
| Mining | | | 1.4 | |
| Multi-National | | | 0.1 | |
| Municipal | | | 0.2 | |
| Oil & Gas | | | 9.7 | |
| Telecommunications | | | 1.0 | |
| Transportation | | | 0.5 | |
| Other Assets and Liabilities — Net | | | 5.7 | |
| | | | | |
Net Assets | | | 100.0 | % |
| | | | | |
See Accompanying Notes to Financial Statements
214
PORTFOLIO OF INVESTMENTS
ING Emerging Markets Fixed Income Fund
as of April 30, 2008 (Unaudited) (continued)
ING Emerging Markets Fixed Income Fund Open Futures Contracts on April 30, 2008
| | | | | | | | | | | | | | | | | |
| | | | | | | | | Unrealized
|
| | | Number
| | Notional
| | Expiration
| | Appreciation/
|
Contract Description | | of Contracts | | Market Value ($) | | Date | | (Depreciation) |
| |
Long Contracts | | | | | | | | | | | | | | | | |
U.S. Treasury 5-Year Note | | | 66 | | | | 7,390,969 | | | | 06/30/08 | | | $ | (65,546 | ) |
| U.S. Treasury Long Bond | | | 9 | | | | 1,052,016 | | | | 06/19/08 | | | | 2,862 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (62,684 | ) |
| | | | | | | | | | | | | | | | | |
At April 30, 2008, the following forward currency contracts were outstanding for the ING Emerging Markets Fixed Income Fund:
| | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | |
| | | | | Settlement
| | Exchange
| | | | Unrealized
|
Currency | | Buy/Sell | | Date | | For | | Value | | Depreciation |
| | | | | | | USD | | | | |
| |
Turkish Lira
TRY 4,200,000 | | Sell | | 06/02/08 | | | 3,213,220 | | | | 3,256,521 | | | $ | (43,301 | ) |
Brazilian Real
BRL 14,200,000 | | Sell | | 06/02/08 | | | 8,299,241 | | | | 8,473,565 | | | | (174,324 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (217,625 | ) |
| | | | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
215
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| |
CORPORATE BONDS/NOTES: 1.5% |
| | | | | | | |
| | | | | | | Airlines: 0.1% |
| $ | 150,000 | | | C | | Delta Airlines, Inc., 7.570%, due 11/18/10 | | $ | 145,500 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 145,500 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Banks: 0.8% |
| | 700,000 | | | C | | Bank of America Corp., 8.000%, due 01/30/18 | | | 713,361 | |
| | 151,000 | | | | | SunTrust Bank, 7.250%, due 03/15/18 | | | 159,291 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 872,652 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Beverages: 0.4% |
| | BRL 900,000 | | | @@,# | | Ambev International Finance Co., Ltd., 9.500%, due 07/24/17 | | | 465,648 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 465,648 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Diversified Financial Services: 0.1% |
| | 90,000 | | | | | American Express Co., 8.150%, due 03/19/38 | | | 105,023 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 105,023 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Electric: 0.1% |
| | 64,000 | | | C | | Commonwealth Edison Co., 4.700%, due 04/15/15 | | | 60,419 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 60,419 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Corporate Bonds/Notes
(Cost $1,655,542) | | | 1,649,242 | |
| | | | | | | | | | | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS: 6.5% |
| | | | | | | |
| | | | | | | Federal Home Loan Mortgage Corporation: 4.2% |
| | 800,000 | | | W | | 5.000%, due 05/01/37 | | | 786,125 | |
| | 2,753,000 | | | | | 5.500%, due 05/01/37 | | | 2,770,636 | |
| | 225,000 | | | W | | 6.000%, due 05/01/37 | | | 230,168 | |
| | 702,000 | | | W | | 6.500%, due 05/15/34 | | | 727,118 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 4,514,047 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Federal National Mortgage Association: 2.3% |
| | 667,000 | | | W | | 5.000%, due 05/01/22 | | | 670,439 | |
| | 303,730 | | | S | | 5.000%, due 03/01/37 | | | 292,638 | |
| | 646,000 | | | W | | 5.500%, due 05/15/20 | | | 657,810 | |
| | 398,478 | | | S | | 5.500%, due 06/01/37 | | | 401,143 | |
| | 432,000 | | | W | | 6.500%, due 05/01/37 | | | 447,053 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 2,469,083 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total U.S. Government Agency Obligations
(Cost $6,985,549) | | | 6,983,130 | |
| | | | | | | | | | | |
| |
U.S. TREASURY OBLIGATIONS: 19.0% |
| | | | | | | |
| | | | | | | U.S. Treasury Bonds: 4.9% |
| | 3,139,000 | | | S | | 3.500%, due 02/15/18 | | | 3,073,279 | |
| | 2,023,000 | | | S | | 5.000%, due 05/15/37 | | | 2,193,059 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 5,266,338 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | U.S. Treasury Notes: 12.7% |
| | 3,020,000 | | | S | | 1.750%, due 03/31/10 | | | 2,992,397 | |
| | 3,020,000 | | | S | | 2.125%, due 04/30/10 | | | 3,006,788 | |
| | 7,342,000 | | | S | | 3.125%, due 04/30/13 | | | 7,372,976 | |
| | 260,000 | | | S | | 4.500%, due 05/15/10 | | | 271,944 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 13,644,105 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Treasury Inflation Indexed Protected Securities: 1.4% |
| | 474,926 | | | S | | 1.750%, due 01/15/28 | | | 452,886 | |
| | 972,291 | | | S | | 2.000%, due 04/15/12 | | | 1,022,805 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 1,475,691 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total U.S. Treasury Obligations
(Cost $20,445,292) | | | 20,386,134 | |
| | | | | | | | | | | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS: 3.3% |
| | 700,000 | | | C,S | | Ge Capital Commercial Mortgage Corp., 5.339%, due 03/10/44 | | | 691,742 | |
| | 122,000 | | | C,S | | Greenwich Capital Commercial Funding Corp., 5.117%, due 04/10/37 | | | 122,554 | |
| | 700,000 | | | C,S | | Greenwich Capital Commercial Funding Corp., 5.475%, due 03/10/39 | | | 636,194 | |
| | 250,000 | | | C,S | | JPMorgan Chase Commercial Mortgage Securities Corp., 4.865%, due 03/15/46 | | | 246,261 | |
| | 700,000 | | | C,S | | JPMorgan Chase Commercial Mortgage Securities Corp., 5.345%, due 12/15/44 | | | 696,836 | |
| | 97,000 | | | C,S | | LB-UBS Commercial Mortgage Trust, 5.103%, due 11/15/30 | | | 97,426 | |
| | 1,000,000 | | | C,S | | LB-UBS Commercial Mortgage Trust, 6.150%, due 04/15/41 | | | 1,011,311 | |
| | | | | | | | | | | |
| | | | | | | Total Collateralized Mortgage Obligations
(Cost $3,408,948) | | | 3,502,324 | |
| | | | | | | | | | | |
| |
MUNICIPAL BONDS: 0.8% |
| | | | | | | |
| | | | | | | Louisiana: 0.4% |
| | 400,000 | | | C | | State of Louisiana, 5.000%, due 10/15/17 | | | 429,832 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 429,832 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | | Washington: 0.4% |
| | 400,000 | | | C | | State of Washington, 5.000%, due 01/01/33 | | | 410,152 | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | 410,152 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Municipal Bonds
(Cost $818,743) | | | 839,984 | |
| | | | | | | | | | | |
| |
OTHER BONDS: 30.5% |
| | | | | | | |
| | | | | | | Foreign Government Bonds: 30.5% |
| | EUR 8,440,000 | | | | | Bundesobligation, 3.500%, due 04/08/11 | | | 13,075,654 | |
| | EUR 3,235,000 | | | | | Bundesrepub. Deutschland, 4.250%, due 07/04/17 | | | 5,099,928 | |
| | CAD 1,700,000 | | | | | Canadian Government International Bond, 3.750%, due 06/01/12 | | | 1,731,397 | |
| | EUR 930,000 | | | | | France Government International Bond OAT, 3.250%, due 04/25/16 | | | 1,359,557 | |
| | EUR 915,000 | | | | | Italy Buoni Poliennali Del Tesoro, 3.750%, due 08/01/16 | | | 1,368,928 | |
| | JPY 230,000,000 | | | Z | | Japan Financing Bills, 0.520%, due 06/09/08 | | | 2,210,570 | |
See Accompanying Notes to Financial Statements
216
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | Foreign Government Bonds (continued) |
| | JPY 414,562,500 | | | S | | Japan Government CPI Linked, 1.200%, due 12/10/17 | | $ | 3,947,870 | |
| | GBP 1,595,000 | | | | | United Kingdom Gilt Bond, 4.000%, due 03/07/09 | | | 3,159,558 | |
| | GBP 230,000 | | | | | United Kingdom Gilt Bond, 4.250%, due 03/07/36 | | | 438,408 | |
| | UYU 6,067,000 | | | S | | Uruguay Government International Bond, 4.250%, due 04/05/27 | | | 315,391 | |
| | | | | | | | | | | |
| | | | | | | Total Other Bonds
(Cost $30,739,382) | | | 32,707,261 | |
| | | | | | | | | | | |
| | | | | | | Total Long-Term Investments
(Cost $64,053,456) | | | 66,068,075 | |
| | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
SHORT-TERM INVESTMENTS: 40.7% |
| | | | | | | |
| | | | | | | Mutual Fund: 34.7% |
| | 37,125,000 | | | **,S | | ING Institutional Prime Money Market Fund | | $ | 37,125,000 | |
| | | | | | | | | | | |
| | | | | | | Total Mutual Fund
(Cost $37,125,000) | | | 37,125,000 | |
| | | | | | | | | | | |
Principal
| | | | | | | | |
| Amount | | | | | | | | Value |
| |
| |
| | | | | | | |
| | | | | | | Foreign Government Securities: 5.5% |
| | EUR 3,810,000 | | | Z | | German Treasury Bill, 3.450%, due 06/18/08 | | $ | 5,921,315 | |
| | | | | | | | | | | |
| | | | | | | Total Foreign Government Securities
(Cost $5,921,315) | | | 5,921,315 | |
| | | | | | | | | | | |
| | | | | | | |
| | | | | | | Repurchase Agreement: 0.5% |
| $ | 535,000 | | | S | | Goldman Sachs Repurchase Agreement dated 04/30/08, 1.970%, due 05/01/08, $535,029 to be received upon repurchase (Collateralized by $540,700 U.S. Treasury Note, 2.625%, Market Value plus accrued interest $545,767, due 03/15/09) | | | 535,000 | |
| | | | | | | | | | | |
| | | | | | | Total Repurchase Agreement
(Cost $535,000) | | | 535,000 | |
| | | | | | | | | | | |
| | | | | | | Total Short-Term Investments
(Cost $43,581,315) | | | 43,581,315 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $107,634,771)* | | | 102.3 | % | | $ | 109,649,390 | |
| | | | | Other Assets and
Liabilities - Net | | | (2.3 | ) | | | (2,416,861 | ) |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 107,232,529 | |
| | | | | | | | | | | | | |
| | | |
| Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A). |
| | | |
| @@ | | Foreign Issuer |
| # | | 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. |
| C | | Bond may be called prior to maturity date. |
| W | | When-issued or delayed delivery security |
| S | | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. |
| ** | | Investment in affiliate |
| Z | | Indicates Zero Coupon Bond; rate shown reflects current effective yield. |
| BRL | | Brazilian Real |
| CAD | | Canadian Dollar |
| EUR | | EU Euro |
| GBP | | British Pound |
| JPY | | Japanese Yen |
| UYU | | Uruguayan Peso |
| | | |
| * | | Cost for federal income tax purposes is $107,754,350. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 2,094,408 | |
| Gross Unrealized Depreciation | | | (199,368 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 1,895,040 | |
| | | | | |
At April 30, 2008 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) |
| | | | | USD | | | | | | |
| |
Australia Dollars
AUD 8,264,000 | | | Buy | | | | 05/15/08 | | | | 7,630,523 | | | | 7,781,867 | | | $ | 151,344 | |
Switzerland Francs
CHF 1,936,970 | | | Buy | | | | 05/15/08 | | | | 1,922,000 | | | | 1,869,843 | | | | (52,157 | ) |
Switzerland Francs
CHF 2,093,660 | | | Buy | | | | 05/30/08 | | | | 2,022,000 | | | | 2,021,590 | | | | (410 | ) |
Denmark Kroner
DKK 2,185,000 | | | Buy | | | | 05/30/08 | | | | 456,164 | | | | 456,639 | | | | 475 | |
EURO
EUR 1,352,000 | | | Buy | | | | 05/15/08 | | | | 2,122,609 | | | | 2,109,732 | | | | (12,877 | ) |
EURO
EUR 1,422,040 | | | Buy | | | | 05/15/08 | | | | 2,244,000 | | | | 2,219,025 | | | | (24,975 | ) |
EURO
EUR 1,579,382 | | | Buy | | | | 05/15/08 | | | | 2,516,736 | | | | 2,464,551 | | | | (52,185 | ) |
EURO
EUR 1,633,382 | | | Buy | | | | 05/15/08 | | | | 2,600,000 | | | | 2,548,816 | | | | (51,184 | ) |
Japanese Yen
JPY 838,000,000 | | | Buy | | | | 05/15/08 | | | | 8,209,425 | | | | 8,066,651 | | | | (142,774 | ) |
Japanese Yen
JPY 460,204,027 | | | Buy | | | | 05/15/08 | | | | 4,570,000 | | | | 4,429,958 | | | | (140,042 | ) |
Japanese Yen
JPY 153,833,850 | | | Buy | | | | 05/15/08 | | | | 1,530,000 | | | | 1,480,816 | | | | (49,184 | ) |
Japanese Yen
JPY 206,499,816 | | | Buy | | | | 05/15/08 | | | | 2,040,000 | | | | 1,987,783 | | | | (52,217 | ) |
Japanese Yen
JPY 53,210,184 | | | Buy | | | | 05/15/08 | | | | 515,689 | | | | 512,206 | | | | (3,483 | ) |
Japanese Yen
JPY 553,144,376 | | | Buy | | | | 05/15/08 | | | | 5,365,000 | | | | 5,324,609 | | | | (40,391 | ) |
Japanese Yen
JPY 383,088,420 | | | Buy | | | | 05/15/08 | | | | 3,690,000 | | | | 3,687,638 | | | | (2,362 | ) |
Korea (South) Won
KRW 1,142,032,800 | | | Buy | | | | 05/15/08 | | | | 1,173,000 | | | | 1,138,560 | | | | (34,440 | ) |
New Zealand Dollars
NZD 6,880,508 | | | Buy | | | | 06/18/08 | | | | 5,300,000 | | | | 5,349,943 | | | | 49,943 | |
Norway Krone
NOK 14,345,637 | | | Buy | | | | 05/30/08 | | | | 2,810,000 | | | | 2,810,451 | | | | 451 | |
Poland Zlotych
PLN 1,003,000 | | | Buy | | | | 05/30/08 | | | | 455,306 | | | | 452,405 | | | | (2,901 | ) |
See Accompanying Notes to Financial Statements
217
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In
| | | | Unrealized
|
| | | | | Settlement
| | Exchange
| | | | Appreciation/
|
Currency | | Buy/Sell | | Date | | For | | Value | | (Depreciation) |
| | | | | USD | | | | | | |
| |
Sweden Kronor
SEK 4,625,000 | | | Buy | | | | 05/30/08 | | | | 771,851 | | | | 771,328 | | | | (523 | ) |
Taiwan New Dollars
TWD 11,500,000 | | | Buy | | | | 05/15/08 | | | | 383,333 | | | | 377,885 | | | | (5,448 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | (465,340 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Australia Dollars
AUD 3,103,505 | | | Sell | | | | 05/15/08 | | | | 2,940,000 | | | | 2,922,442 | | | $ | 17,558 | |
Australia Dollars
AUD 2,901,662 | | | Sell | | | | 05/15/08 | | | | 2,732,600 | | | | 2,732,376 | | | | 224 | |
Brazil Real
BRL 813,489 | | | Sell | | | | 05/30/08 | | | | 483,500 | | | | 485,433 | | | | (1,933 | ) |
Canada Dollars
CAD 2,114,834 | | | Sell | | | | 05/30/08 | | | | 2,100,000 | | | | 2,099,320 | | | | 680 | |
Canada Dollars
CAD 604,151 | | | Sell | | | | 05/30/08 | | | | 600,000 | | | | 599,719 | | | | 281 | |
Canada Dollars
CAD 2,244,633 | | | Sell | | | | 05/30/08 | | | | 2,210,000 | | | | 2,228,167 | | | | (18,167 | ) |
Switzerland Francs
CHF 1,936,970 | | | Sell | | | | 05/15/08 | | | | 1,894,118 | | | | 1,869,843 | | | | 24,275 | |
Switzerland Francs
CHF 4,194,661 | | | Sell | | | | 05/30/08 | | | | 4,160,000 | | | | 4,050,269 | | | | 109,731 | |
EURO
EUR 1,579,382 | | | Sell | | | | 05/15/08 | | | | 2,483,000 | | | | 2,464,551 | | | | 18,449 | |
EURO
EUR 807,362 | | | Sell | | | | 05/15/08 | | | | 1,265,000 | | | | 1,259,850 | | | | 5,150 | |
Japanese Yen
JPY 150,668,058 | | | Sell | | | | 05/15/08 | | | | 1,460,000 | | | | 1,450,342 | | | | 9,658 | |
Japanese Yen
JPY 153,833,850 | | | Sell | | | | 05/15/08 | | | | 1,475,746 | | | | 1,480,816 | | | | (5,070 | ) |
Japanese Yen
JPY 383,088,420 | | | Sell | | | | 05/15/08 | | | | 3,676,423 | | | | 3,687,638 | | | | (11,215 | ) |
Japanese Yen
JPY 67,750,410 | | | Sell | | | | 05/15/08 | | | | 650,000 | | | | 652,171 | | | | (2,171 | ) |
Japanese Yen
JPY 259,710,000 | | | Sell | | | | 05/15/08 | | | | 2,500,000 | | | | 2,499,989 | | | | 11 | |
Mexico Pesos
MXN 7,108,447 | | | Sell | | | | 05/15/08 | | | | 670,000 | | | | 676,417 | | | | (6,417 | ) |
Mexico Pesos
MXN 30,201,737 | | | Sell | | | | 05/15/08 | | | | 2,860,000 | | | | 2,873,902 | | | | (13,902 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | $ | 127,142 | |
| | | | | | | | | | | | | | | | | | | | | |
ING Global Bond Fund Open Futures Contracts on April 30, 2008
| | | | | | | | | | | | | | | | | |
| | | | | Notional
| | | | Unrealized
|
| | | Number of
| | Market
| | Expiration
| | Appreciation/
|
Contract Description | | Contracts | | Value ($) | | Date | | (Depreciation) |
| |
Long Contracts | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
90-Day Sterling | | | 37 | | | | 8,726,016 | | | | 03/18/09 | | | $ | (46,317 | ) |
Australia 10-Year Bond | | | 38 | | | | 3,505,103 | | | | 06/16/08 | | | | (66,687 | ) |
Canada 10-Year Bond | | | 17 | | | | 1,996,753 | | | | 06/19/08 | | | | 48,694 | |
| Euro-Bund | | | 25 | | | | 4,452,868 | | | | 06/06/08 | | | | (116,510 | ) |
| Euro-Schatz | | | 104 | | | | 16,862,670 | | | | 06/06/08 | | | | (229,070 | ) |
Japanese Government Bonds 10-Year Mini | | | 19 | | | | 2,496,668 | | | | 06/10/08 | | | | (47,640 | ) |
| Long Gilt | | | 11 | | | | 2,368,453 | | | | 06/26/08 | | | | (7,382 | ) |
U.S. Treasury 5-Year Note | | | 14 | | | | 1,567,781 | | | | 06/30/08 | | | | (20,051 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (484,963 | ) |
| | | | | | | | | | | | | | | | | |
Short Contracts | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
90-Day Sterling | | | 37 | | | | (8,713,602 | ) | | | 03/17/10 | | | $ | 29,048 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | 29,048 | |
| | | | | | | | | | | | | | | | | |
ING Global Bond Fund Credit Default Swap Agreements Outstanding on April 30, 2008:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Unrealized
|
| | | | | Buy/Sell
| | (Pay)/Receive
| | Termination
| | | | Notional
| | Appreciation/
|
Counterparty | | Reference Entity/Obligation | | Protection | | Fixed Rate (%) | | Date | | | | Amount | | (Depreciation) |
| |
| UBS AG | | Australia and New Zealand Banking Group
4.450%, 02/05/15 | | Buy | | | (0.350 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 1,177 | |
| Citibank N.A., New York | | Bank of Scotland
5.125%, 12/05/13 | | Buy | | | (0.660 | ) | | | 09/20/17 | | | | USD | | | | 100,000 | | | | 6,165 | |
| UBS AG | | Bank of Scotland
5.125%, 12/05/13 | | Buy | | | (0.410 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 3,999 | |
| Citibank N.A., New York | | BNP Paribas
5.250%, 12/17/12 | | Buy | | | (0.520 | ) | | | 09/20/17 | | | | USD | | | | 100,000 | | | | 1,466 | |
| Citibank N.A., New York | | CDX.EM.9 Index | | Buy | | | (2.650 | ) | | | 06/20/13 | | | | USD | | | | 1,000,000 | | | | (16,723 | ) |
| Barclays Bank PLC | | Federative Republic of Brazil
12.250%, 03/06/30 | | Sell | | | 0.240 | | | | 06/20/08 | | | | USD | | | | 2,850,000 | | | | (143 | ) |
| Citibank N.A., New York | | Federative Republic of Brazil
12.250%, 03/06/30 | | Sell | | | 0.240 | | | | 07/20/08 | | | | USD | | | | 1,200,000 | | | | (95 | ) |
| Citibank N.A., New York | | Federative Republic of Brazil
12.250%, 03/06/30 | | Buy | | | (0.740 | ) | | | 07/20/12 | | | | USD | | | | 300,000 | | | | 2,436 | |
| UBS AG | | HSBC Bank PLC
4.250%, 03/18/16 | | Buy | | | (0.400 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 1,840 | |
| UBS AG | | Royal Bank of Scotland PLC
6.000%, 05/10/13 | | Buy | | | (0.400 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 2,531 | |
| Citibank N.A., New York | | Societe Generale
6.625%, 04/27/15 | | Buy | | | (0.510 | ) | | | 09/20/17 | | | | USD | | | | 100,000 | | | | 3,804 | |
| UBS AG | | Societe Generale
6.625%, 04/27/15 | | Buy | | | (0.380 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 2,391 | |
| Citibank N.A., New York | | Standard Chartered Bank
3.625%, 02/03/17 | | Buy | | | (0.670 | ) | | | 09/20/17 | | | | USD | | | | 100,000 | | | | 2,927 | |
See Accompanying Notes to Financial Statements
218
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Unrealized
|
| | | | | Buy/Sell
| | (Pay)/Receive
| | Termination
| | | | Notional
| | Appreciation/
|
Counterparty | | Reference Entity/Obligation | | Protection | | Fixed Rate (%) | | Date | | | | Amount | | (Depreciation) |
| |
| UBS AG | | Standard Chartered Bank
3.625%, 02/03/17 | | Buy | | | (0.420 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 2,402 | |
| UBS AG | | Westpac Banking Corp.
5.875%, 04/29/18 | | Buy | | | (0.350 | ) | | | 09/20/17 | | | | USD | | | | 50,000 | | | | 2,195 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | 16,372 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
ING Global Bond Fund Interest Rate Swap Agreements Outstanding on April 30, 2008:
| | | | | | | | | | | | | | | |
| | | | | | | Notional
| | Unrealized
|
| | | Termination
| | | | Principal
| | Appreciation/
|
| | | Date | | | | Amount | | (Depreciation) |
| |
Receive a fixed rate equal to 3.186% and pay a floating rate based on 3-month USD-LIBOR Counterparty: Citibank N.A., New York | | | 04/22/10 | | | USD | | | 5,477,000 | | | $ | 1,457 | |
| Receive a fixed rate equal to 8.370% and pay a floating rate based on 3-month NZD-BBR-FRA Counterparty: UBS AG, London | | | 07/12/10 | | | NZD | | | 5,835,000 | | | | 37,670 | |
| Receive a fixed rate equal to 4.670% and pay a floating rate based on 6-month GBP-LIBOR Counterparty: Citibank N.A., New York | | | 08/05/10 | | | GBP | | | 3,559,000 | | | | (76,015 | ) |
| Receive a fixed rate equal to 4.920% and pay a floating rate based on 6-month GBP-LIBOR Counterparty: Citibank N.A., New York | | | 08/23/10 | | | GBP | | | 3,559,000 | | | | (43,709 | ) |
| Receive a fixed rate equal to 5.260% and pay a floating rate based on 6-month GBP-LIBOR Counterparty: Citibank N.A., New York | | | 10/29/10 | | | GBP | | | 17,500,000 | | | | (5,155 | ) |
| Receive a floating rate based on 3-month NZD-BBR-FRA and pay a fixed rate equal to 7.710% Counterparty: UBS AG, London | | | 07/13/15 | | | NZD | | | 2,000,000 | | | | (17,158 | ) |
| Receive a floating rate based on 3-month USD-LIBOR and pay a fixed rate equal to 4.270% Counterparty: Citibank N.A., New York | | | 01/23/18 | | | USD | | | 1,280,000 | | | | (4,446 | ) |
| Receive a floating rate based on 6-month GBP-LIBOR and pay a fixed rate equal to 4.870% Counterparty: Citibank N.A., New York | | | 08/06/18 | | | GBP | | | 861,000 | | | | 33,364 | |
| Receive a floating rate based on 6-month GBP-LIBOR and pay a fixed rate equal to 5.150% Counterparty: Citibank N.A., New York | | | 08/22/18 | | | GBP | | | 861,000 | | | | (3,542 | ) |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | (77,534 | ) |
| | | | | | | | | | | | | | | |
See Accompanying Notes to Financial Statements
219
PORTFOLIO OF INVESTMENTS
ING Diversified International Fund
as of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | | | |
| Shares | | | | | | | | Value |
| |
| |
| |
AFFILIATED INVESTMENT COMPANIES: 99.9% |
| | 491,420 | | | | | ING Emerging Countries Fund — Class I | | $ | 18,246,418 | |
| | 5,455,559 | | | @ | | ING Foreign Fund — Class I | | | 110,147,731 | |
| | 11,331,521 | | | | | ING Index Plus International Equity Fund — Class I | | | 124,080,150 | |
| | 10,957,524 | | | | | ING International Capital Appreciation Fund — Class I | | | 139,708,425 | |
| | 5,138,987 | | | | | ING International Equity Dividend Fund — Class I | | | 48,255,087 | |
| | 2,386,783 | | | | | ING International Real Estate Fund — Class I | | | 28,784,603 | |
| | 1,045,980 | | | | | ING International SmallCap Fund — Class I | | | 48,784,502 | |
| | 4,018,072 | | | | | ING International Value Choice Fund — Class I | | | 48,015,955 | |
| | | | | | | | | | | |
| | | | | Total Investments in Securities |
| | | | | (Cost $552,124,404)* | | | 99.9 | % | | $ | 566,022,871 | |
| | | | | Other Assets and
Liabilities - Net | | | 0.1 | | | | 366,642 | |
| | | | | | | | | | | | | |
| | | | | Net Assets | | | 100.0 | % | | $ | 566,389,513 | |
| | | | | | | | | | | | | |
| | | |
| Securities may have been fair valued in accordance with procedures approved by the Board of Directors (Note 2A). |
| | | |
| @ | | Non-income producing security |
| | | |
| * | | Cost for federal income tax purposes is $564,847,175. |
| | | |
| | | Net unrealized appreciation consists of: |
| | | | | |
| Gross Unrealized Appreciation | | $ | 8,787,261 | |
| Gross Unrealized Depreciation | | | (7,611,565 | ) |
| | | | | |
| Net Unrealized Appreciation | | $ | 1,175,696 | |
| | | | | |
See Accompanying Notes to Financial Statements
220
SHAREHOLDER MEETING INFORMATION (Unaudited)
A special meeting of shareholders of ING Mutual Funds was held November 21, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| | |
| | 1 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
| |
| | 2 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
| |
| | 3 | To approve the election of eleven nominees to the Boards of Directors/Trustees of the Funds. |
Results:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Shares
| | | | | | |
| | | | | | | Voted
| | | | | | |
| | | | | Shares
| | Against
| | | | | | Total
|
| | | | | Voted
| | or
| | Shares
| | Broker
| | Shares
|
| | | Proposal* | | For | | Withheld | | Abstained | | Non-Vote | | Voted |
| |
| ING Emerging Countries Fund | | | 1 | | | | 3,303,664.071 | | | | 256,758.695 | | | | 127,156.710 | | | | 1,700,808.000 | | | | 5,388,387.476 | |
| ING International SmallCap Fund | | | 1 | | | | 3,943,249.848 | | | | 4,250,437.496 | | | | 188,929.786 | | | | 2,897,071.000 | | | | 11,279,688.130 | |
| ING Russia Fund | | | 1 | | | | 4,123,725.745 | | | | 547,550.981 | | | | 150,848.838 | | | | 4,102,805.000 | | | | 8,924,930.564 | |
| ING International Growth Opportunities Fund | | | 1 | | | | 3,343,806.470 | | | | 211,331.428 | | | | 107,253.207 | | | | 2,127,408.000 | | | | 5,789,799.105 | |
| ING Global Equity Dividend Fund | | | 2 | | | | 8,801,534.302 | | | | 572,748.029 | | | | 317,208.513 | | | | 6,231,716.000 | | | | 15,923,206.844 | |
| ING Global Real Estate Fund | | | 2 | | | | 21,151,855.465 | | | | 2,519,234.577 | | | | 774,688.916 | | | | 16,023,095.000 | | | | 40,468,873.958 | |
| ING Russia Fund | | | 2 | | | | 4,164,475.651 | | | | 530,750.074 | | | | 126,899.839 | | | | 4,102,805.000 | | | | 8,924,930.564 | |
| ING International Growth Opportunities Fund | | | 2 | | | | 3,341,587.008 | | | | 207,680.830 | | | | 113,123.267 | | | | 2,127,408.000 | | | | 5,789,799.105 | |
| Colleen D. Baldwin | | | 3 | | | | 249,706,919.045 | | | | 3,027,810.174 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| John V. Boyer | | | 3 | | | | 249,682,044.241 | | | | 3,052,684.978 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Patricia W. Chadwick | | | 3 | | | | 249,465,993.099 | | | | 3,268,736.120 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Robert W. Crispin | | | 3 | | | | 249,643,813.665 | | | | 3,090,915.554 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Peter S. Drotch | | | 3 | | | | 249,697,326.071 | | | | 3,037,403.148 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| J. Michael Earley | | | 3 | | | | 249,522,554.729 | | | | 3,212,174.490 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Patrick W. Kenny | | | 3 | | | | 249,766,444.194 | | | | 2,968,285.025 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Shaun P. Mathews | | | 3 | | | | 249,749,451.981 | | | | 2,985,277.238 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Sheryl K. Pressler | | | 3 | | | | 249,640,102.557 | | | | 3,094,626.662 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| David W.C. Putnam | | | 3 | | | | 249,463,578.379 | | | | 3,271,150.840 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| Roger B. Vincent | | | 3 | | | | 249,707,425.710 | | | | 3,027,303.509 | | | | 0.000 | | | | 0.000 | | | | 252,734,729.219 | |
| |
| * | The Shareholder Meeting for Proposals 1 and 2 were adjourned to December 17, 2007. Proposal 3 passed at this meeting. |
221
SHAREHOLDER MEETING INFORMATION (Unaudited) (continued)
A special meeting of shareholders of ING Mutual Funds was held December 17, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| | |
| | 1 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
| |
| | 2 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
Results:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Shares
| | | | | | |
| | | | | | | Voted
| | | | | | |
| | | | | Shares
| | Against
| | | | | | Total
|
| | | | | Voted
| | or
| | Shares
| | Broker
| | Shares
|
| | | Proposal | | For | | Withheld | | Abstained | | Non-Vote | | Voted |
| |
| ING Emerging Countries Fund | | | 1 | * | | | 3,529,006.191 | | | | 280,815.324 | | | | 138,635.452 | | | | 1,569,897.000 | | | | 5,518,353.967 | |
| ING International SmallCap Fund | | | 1 | | | | 4,740,527.619 | | | | 4,358,399.651 | | | | 297,254.233 | | | | 2,431,217.000 | | | | 11,827,398.503 | |
| ING Russia Fund | | | 1 | | | | 4,579,183.510 | | | | 603,011.206 | | | | 219,936.660 | | | | 3,635,599.000 | | | | 9,037,730.376 | |
| ING International Growth Opportunities Fund | | | 1 | * | | | 4,039,312.321 | | | | 273,169.844 | | | | 170,240.604 | | | | 2,004,551.000 | | | | 6,487,273.769 | |
| ING Global Equity Dividend Fund | | | 2 | * | | | 9,832,039.528 | | | | 700,045.216 | | | | 391,917.152 | | | | 5,508,641.000 | | | | 16,432,642.896 | |
| ING Global Real Estate Fund | | | 2 | | | | 23,468,669.794 | | | | 2,758,822.536 | | | | 921,401.206 | | | | 14,331,317.000 | | | | 41,480,210.536 | |
| ING Russia Fund | | | 2 | | | | 4,620,033.621 | | | | 589,915.409 | | | | 192,182.346 | | | | 3,635,599.000 | | | | 9,037,730.376 | |
| ING International Growth Opportunities Fund | | | 2 | * | | | 4,053,822.933 | | | | 261,821.262 | | | | 167,078.574 | | | | 2,004,551.000 | | | | 6,487,273.769 | |
| |
| * | The Shareholder Meeting was adjourned to December 31, 2007. |
A special meeting of shareholders of ING Mutual Funds was held December 31, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| | |
| | 1 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
| |
| | 2 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
Results:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Shares
| | | | | | |
| | | | | | | Voted
| | | | | | |
| | | | | Shares
| | Against
| | | | | | Total
|
| | | | | Voted
| | or
| | Shares
| | Broker
| | Shares
|
| | | Proposal | | For | | Withheld | | Abstained | | Non-Vote | | Voted |
| |
| ING Emerging Countries Fund | | | 1 | | | | 3,788,561.250 | | | | 336,812.506 | | | | 142,377.185 | | | | 1,441,855.000 | | | | 5,709,605.941 | |
| ING International Growth Opportunities Fund | | | 1 | | | | 4,598,913.597 | | | | 276,176.245 | | | | 179,179.802 | | | | 1,872,805.000 | | | | 6,927,074.644 | |
| ING Global Equity Dividend Fund | | | 2 | | | | 10,926,527.364 | | | | 719,218.216 | | | | 427,476.968 | | | | 4,798,437.000 | | | | 16,871,659.548 | |
| ING International Growth Opportunities Fund | | | 2 | | | | 4,612,833.497 | | | | 265,947.709 | | | | 175,488.438 | | | | 1,872,805.000 | | | | 6,927,074.644 | |
222
SHAREHOLDER MEETING INFORMATION (Unaudited) (continued)
A special meeting of shareholders of ING Mayflower Trust was held November 21, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| | |
| | 1 | To approve the conversion of ING International Value Fund’s investment objectives from fundamental to non-fundamental. |
| |
| | 2 | To approve a “Manager-of-Managers” arrangement for ING International Value Fund to permit the Fund’s investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Fund’s shareholders. |
| |
| | 3 | To approve the election of eleven nominees to the Boards of Directors/Trustees of the Funds. |
Results:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Shares
| | | | | | |
| | | | | | | Voted
| | | | | | |
| | | | | Shares
| | Against
| | | | | | Total
|
| | | | | Voted
| | or
| | Shares
| | Broker
| | Shares
|
| | | Proposal | | For | | Withheld | | Abstained | | Non-Vote | | Voted |
| |
| ING International Value Fund | | | 1 | | | | 53,134,727.860 | | | | 12,931,098.876 | | | | 1,846,960.854 | | | | 49,989,278.000 | | | | 117,902,065.590 | |
| ING International Value Fund | | | 2 | | | | 53,473,259.272 | | | | 12,897,305.863 | | | | 1,542,222.455 | | | | 49,989,278.000 | | | | 117,902,065.590 | |
| Colleen D. Baldwin | | | 3 | * | | | 116,298,776.295 | | | | 1,603,289.295 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| John V. Boyer | | | 3 | * | | | 115,837,744.643 | | | | 2,064,320.947 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Patricia W. Chadwick | | | 3 | * | | | 116,300,896.837 | | | | 1,601,168.753 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Robert W. Crispin | | | 3 | * | | | 115,771,872.288 | | | | 2,130,193.302 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Peter S. Drotch | | | 3 | * | | | 116,239,079.379 | | | | 1,662,986.211 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| J. Michael Earley | | | 3 | * | | | 115,921,536.128 | | | | 1,980,529.462 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Patrick W. Kenny | | | 3 | * | | | 115,919,408.277 | | | | 1,982,657.313 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Shaun P. Mathews | | | 3 | * | | | 115,849,151.042 | | | | 2,052,914.548 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Sheryl K. Pressler | | | 3 | * | | | 115,770,736.133 | | | | 2,131,329.457 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| David W.C. Putnam | | | 3 | * | | | 116,273,111.205 | | | | 1,628,954.385 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| Roger B. Vincent | | | 3 | * | | | 116,316,328.731 | | | | 1,585,736.859 | | | | 0.000 | | | | 0.000 | | | | 117,902,065.590 | |
| |
| * | The Shareholder Meeting was adjourned to December 17, 2007. |
223
SHAREHOLDER MEETING INFORMATION (Unaudited) (continued)
A special meeting of shareholders of ING Mayflower Trust was held December 17, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| | |
| | 1 | To approve the conversion of ING International Value Fund’s investment objectives from fundamental to non-fundamental. |
| |
| | 2 | To approve a “Manager-of-Managers” arrangement for ING International Value Fund to permit the Fund’s investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Fund’s shareholders. |
| |
| | 3 | To approve the election of eleven nominees to the Boards of Directors/Trustees of the Funds. |
Results:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Shares
| | | | | | |
| | | | | | | Voted
| | | | | | |
| | | | | Shares
| | Against
| | | | | | Total
|
| | | | | Voted
| | or
| | Shares
| | Broker
| | Shares
|
| | | Proposal* | | For | | Withheld | | Abstained | | Non-Vote | | Voted |
| |
| ING International Value Fund | | | 1 | | | | 61,904,583.421 | | | | 13,826,523.452 | | | | 2,572,363.315 | | | | 46,288,030.000 | | | | 124,591,500.188 | |
| ING International Value Fund | | | 2 | | | | 62,501,627.034 | | | | 13,607,460.213 | | | | 2,194,382.941 | | | | 46,288,030.000 | | | | 124,591,500.188 | |
| Colleen D. Baldwin | | | 3 | | | | 121,874,494.995 | | | | 2,010,885.664 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| John V. Boyer | | | 3 | | | | 121,411,982.213 | | | | 2,473,398.446 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Patricia W. Chadwick | | | 3 | | | | 121,877,660.003 | | | | 2,007,720.656 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Robert W. Crispin | | | 3 | | | | 121,345,455.757 | | | | 2,539,924.902 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Peter S. Drotch | | | 3 | | | | 121,811,215.729 | | | | 2,074,164.930 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| J. Michael Earley | | | 3 | | | | 121,493,007.375 | | | | 2,392,373.284 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Patrick W. Kenny | | | 3 | | | | 121,493,565.515 | | | | 2,391,815.144 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Shaun P. Mathews | | | 3 | | | | 121,423,388.418 | | | | 2,461,992.241 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Sheryl K. Pressler | | | 3 | | | | 121,349,642.026 | | | | 2,535,738.633 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| David W.C. Putnam | | | 3 | | | | 121,844,329.644 | | | | 2,041,051.015 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| Roger B. Vincent | | | 3 | | | | 121,890,566.059 | | | | 1,994,814.600 | | | | 0.000 | | | | 0.000 | | | | 123,885,380.659 | |
| |
| * | Proposal 3 passed at this meeting. |
224
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 “Trusts”), 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 30, 2007, 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 Funds and the sub-advisory contracts (“Sub-Advisory Contracts”) with the sub-adviser to each Fund (the “Sub-Advisers”).
The Independent Trustees also held separate meetings on October 10 and November 28, 2007 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 30, 2007 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 Kirkpatrick & Lockhart Preston Gates Ellis 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 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, 2008. 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
225
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
Board also established a Contracts Committee and two Investment Review Committees, including the International/Balanced/Fixed Income Funds Investment Review Committee (the “I/B/F IRC”). Among other matters, the Contracts Committee provides oversight with respect to the contracts renewal process, and each Fund is assigned to the I/B/F 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 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 2007, 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 Board’s Investment Review Committees (including the I/B/F IRC) review benchmarks used to assess the performance of the funds in the ING Funds complex. The Investment Review Committees 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, 2008. 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, 2008, 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 each Sub-Adviser. This included information regarding the Adviser and each Sub-Adviser 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 30, 2007 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) the 15(c) Methodology Guide, which describes how the FACT sheets were prepared, including the manner in which the Fund’s benchmark and SPG were selected and how profitability was determined; (3) responses from the Adviser and each Sub-Adviser to a series of questions posed by K&L Gates on behalf of the Trustees; (4) copies of the forms of Advisory Contract and Sub-Advisory Contract; (5) copies of the Forms ADV for the Adviser and each Sub-Adviser; (6) financial statements for the Adviser and each Sub-Adviser; (7) 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 the Fund of how performance, fees and expenses compare to its SPG and/or designated benchmark; (8) independent analyses of Fund performance by the Trusts’ Chief Investment Risk Officer; (9) information regarding net asset flows into and out of the Fund; and (10) other information relevant to the Board’s evaluations.
226
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
Each Fund’s Class A shares were used for purposes of certain comparisons to the funds in its SPG. Class A shares were selected so that the Fund’s share class with the longest performance history was compared to the analogous class of shares for each fund in its SPG. The mutual funds included in each Fund’s SPG 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 each Sub-Adviser 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 I/B/F IRC to assist the Board and the I/B/F IRC with their assessment of the investment performance of 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 Board’s Investment Review Committees 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 each Sub-Adviser and the proactive approach that the Adviser, working in cooperation with the I/B/F IRC, has taken to advocate or recommend, when it believed appropriate, changes designed to assist in improving the Funds’ performance. Such changes could include, for example, changes in personnel who are responsible for managing a Fund’s portfolio. 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.
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 their codes of ethics. The Board considered reports from the Trusts’ 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 each Sub-Adviser, and evaluated the ability of the Adviser and each Sub-Adviser 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 each Sub-Adviser, and whether those resources are commensurate with the needs of the Funds and are sufficient to sustain appropriate levels of performance and compliance needs.
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 each Sub-Adviser 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
227
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
portfolio managers at Board and committee meetings during the year, particular attention in assessing performance was given to the FACT sheets furnished in connection with the renewal process. The FACT sheet prepared for each Fund included its investment performance compared to the Fund’s Morningstar category median, Lipper category median, SPG and primary benchmark. 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 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 resulted in a lower advisory fee rate because a Fund achieved sufficient asset levels to achieve 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 such 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.
Information Regarding Services to Other Clients
The Board requested and, if received, considered information regarding the nature of services and fee rates offered by the Adviser and each Sub-Adviser 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 arm’s-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 similar institutional clients may differ materially due to the different services and additional regulatory overlay associated with registered investment companies, such as the Funds.
Fee Rates and Profitability
The Board reviewed and considered the contractual investment advisory fee rates, combined with the administrative fee rates, 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 any fee waivers and expense limitations applicable to the fees payable by the Funds.
The Board considered the fee structure of each Fund as it relates to the services provided under the contracts and the potential fall-out benefits to the Adviser and 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 each Sub-Adviser are reasonable for the services that each performs, which 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 the Sub-Adviser for that Fund. 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.
228
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
The Board determined that it had requested and received sufficient information to gain a reasonable understanding regarding the Adviser’s and each affiliated Sub-Adviser’s profitability. The Board also recognized that profitability analysis 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 their review of advisory fee rates, the Independent Trustees, from time to time, have directed the Adviser, and the Adviser has agreed, to implement remedial actions for certain Funds within the ING Funds complex. These remedial actions have included, among others: reductions in expense caps or management fee rates; changes to the Sub-Adviser or portfolio manager managing a Fund; and enhancements to the resources available to a Sub-Adviser when managing a Fund. As applicable, the Independent Trustees have requested these adjustments primarily on the basis of a Fund’s performance as compared to its peer group or benchmarks, or its management fee rate or overall expense ratio in relation to its peer group.
Based on the information on revenues, costs, and profitability considered by the Board, and after considering the factors described in this section, the Board concluded that the profits, if any, realized by the Adviser and each Sub-Adviser were not excessive. In making its determinations, the Board considered that the Adviser had incentives to negotiate the most favorable fees from unaffiliated Sub-Advisers, and it based its conclusions on the reasonableness of the sub-advisory fees of each Sub-Adviser primarily on the factors described for each Fund below, and, in the case of non-affiliated Sub-Advisers, in reliance on the arm’s-length nature of the negotiations between the Adviser and Sub-Advisers with respect to sub-advisory fees.
Fund-by-Fund Analysis
The following paragraphs outline certain of the specific factors that the Board considered, and the conclusions reached, at its November 30, 2007 meeting in relation to renewing each Fund’s current Advisory and Sub-Advisory Contracts for the year ending November 30, 2008. 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 Diversified International Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for ING Diversified International Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 one-year period, the second quintile for the year-to-date period, and the third quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Diversified International 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 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
229
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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, 2008. 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 ING Emerging Countries Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund outperformed its Morningstar category median for the most recent calendar quarter, year-to-date, and one-year periods, but underperformed for the three-year, five-year, and ten-year periods; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the three-year and five-year periods, which it underperformed; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the most recent calendar quarter, year-to-date, and one-year periods, and the fifth (lowest) quintile for the three-year and five-year periods.
In analyzing this performance data, the Board took into account Management’s representations regarding the Fund’s performance during different periods and that the Sub-Adviser assumed responsibility for the Fund effective March 2005, and therefore, the three- and five-year performance includes that of the prior Sub-Adviser.
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 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 equal to the median and below 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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Emerging Markets Fixed Income Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for ING Emerging Markets Fixed Income Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund underperformed its Morningstar category median for the most recent calendar quarter and year-to-date periods, but outperformed for the one-year period; (2) the Fund outperformed its primary benchmark for all periods presented; and (3) the Fund is ranked in the third quintile of its Morningstar category for the one-year period, and the fifth (lowest) quintile for the most recent calendar quarter and year-to-date periods.
In analyzing this performance data, the Board took into account that the Fund launched in December 2005 and, therefore, had a limited operating history for the purpose of analyzing Fund performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Emerging Markets Fixed Income 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 the advisory fee and 0.10% administration fee) for the Fund is below the median
230
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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 was launched in December 2005, and it is reasonable to permit the Fund to establish a longer operating history 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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Foreign Fund
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for ING Foreign Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 second quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Foreign 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 ING Foreign Fund, as compared to its SPG, including that: (a) the management fee (inclusive of the advisory fee and 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, 2008. During this renewal process, 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 ING Global Bond Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 second quintile of its Morningstar category for all periods presented.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Global Bond 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 the advisory fee and 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
231
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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, 2008. 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 ING Global Equity Dividend Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund underperformed its Morningstar category median for all periods presented, with the exception of the three-year period, during which it outperformed; (2) the Fund underperformed its primary benchmark for all periods presented, with the exception of the three-year period, during which it outperformed; and (3) the Fund is ranked in the second quintile of its Morningstar category for the three-year period, the third quintile for the one-year period, and the fifth (lowest) quintile for the most recent calendar quarter and year-to-date periods.
In analyzing this performance data, the Board took into account: (1) the Fund’s portfolio management team changed in January 2006; and (2) Management’s analysis regarding the rationale for the Fund’s recent underperformance, including its analysis regarding the effect of unfavorable sector allocation on the Fund’s more recent performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Global Equity Dividend 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 0.10% administration fee) for the Fund is equal to 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) there was a change in portfolio managers in January 2006 and it is reasonable to permit the Sub-Adviser to continue to manage the Fund to appropriately assess 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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING Global Natural Resources Fund (formerly ING Precious Metals Fund)
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for ING Global Natural Resources Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 outperformed its primary benchmark for all periods presented; and (3) the Fund is ranked in the third quintile of its Morningstar category for the one-year period, and the fourth quintile for the most recent calendar quarter, year-to-date, three-year, and five-year periods.
In analyzing this performance data, the Board took into account: (1) in October 2006 there was a change in the Fund’s portfolio management team, and at that time its name, investment objective and strategy were modified to reflect an enhanced investment mandate; and (2) Management’s representations that it would continue to monitor the Fund’s performance to determine if longer-term performance improves.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Global Natural Resources Fund, the Board took into account the factors described above and also considered: (1) the economies of scale benefits to the Fund and its
232
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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 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.
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) in October 2006 the Fund’s investment objective, strategy and portfolio management team were changed, and it is reasonable to permit the Sub-Adviser to continue to manage the Fund to assess 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, 2008. 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 ING Global Real Estate Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 year-to-date, one-year, three-year, and five-year periods, the second quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Global Real Estate 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 ING Global Real Estate Fund, as compared to its SPG, including that: (a) the management fee (inclusive of an advisory fee and 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, 2008. 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 ING Global Value Choice Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the five-year period, during which it underperformed; and (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the three-year and five-year periods, during which it underperformed; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the year-to-date period, the second quintile for the most recent calendar quarter and one-year periods, the third quintile for the three-year period, and the fourth quintile for the five-year period.
In analyzing this performance data, the Board took into account Management’s representations that in February 2005 there was a change in the Sub-Adviser to the Fund, and since then performance had been reasonable.
233
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Global Value Choice 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; (2) the pricing structure (including the expense ratio to be borne by shareholders) of ING Global Value Choice Fund, as compared to its SPG, including that: (a) the management fee (inclusive of the advisory fee and 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 the advisory fee, Class A service fee and expense limitation reductions that had been approved by the Board at its September 2007 meeting, noting that these reductions would be implemented in January 2008.
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) in February 2005 there had been a change in Sub-Advisers to the Fund, and it is reasonable to permit the Sub-Adviser to continue to manage the Fund to assess 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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
Approval of New Sub-Advisory Contract for ING Global Value Choice Fund
Tradewinds Global Investors, LLC (“Tradewinds”) has managed the ING Global Value Choice Fund since February 2005 (the “Former Agreement”). As discussed above, the Former Agreement was last approved for renewal by the Board on November 30, 2007. On November 13, 2007, Nuveen Investments, Inc. (“Nuveen”), the parent of Tradewinds, was acquired by Windy City Investments, Inc. (“Windy City”), a corporation formed by private equity investors led by Madison Dearborn Partners, LLC (the “Transaction”). As a result Tradewinds, previously a wholly-owned subsidiary of Nuveen, became an indirect wholly-owned subsidiary of Windy City.
The 1940 Act requires that an agreement under which a registered investment adviser serves as the sub-adviser to an investment company must provide for the automatic termination of the agreement in the event of its “assignment” (as such term is defined under the 1940 Act). A sale of a controlling block of an investment adviser’s voting securities generally is deemed to result in an assignment of the investment adviser’s advisory agreements. The consummation of the Transaction constituted a sale of a controlling block of voting securities of Tradewinds, resulting in the assignment and automatic termination of the Former Agreement.
In order for management of the Fund to continue uninterrupted after the sale, the Adviser entered into a new Sub-Advisory Contract with Tradewinds, effective as of November 16, 2007 under which Tradewinds has continued to provide day-to-day management services to the Fund (the “New Agreement”). The Transaction did not result in a change to the personnel managing the Fund or its investment strategy.
In anticipation of the Transaction, at a meeting held on September 12, 2007, the Board, including a majority of the Independent Trustees, determined to re-appoint Tradewinds as sub-adviser to the Fund under the New Agreement. In determining whether to approve the New Agreement for the Fund, the Board received and evaluated such information as it deemed necessary for an informed determination of whether the New Agreement should be approved for the Fund. The materials provided to the Board in support of the New Agreement included the following: (1) a memorandum discussing the change of control of Tradewinds and the resulting assignment and automatic termination of the Former Agreement; (2) responses to questions posed by K&L Gates on behalf of the Independent Trustees; (3) supporting documentation, including a copy of the form of the New Agreement; and (4) other information relevant to the Board’s evaluation. In addition, the Board considered the information provided periodically throughout the year in presentations to the Board by Management and by Tradewinds in connection
234
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
with its management of funds in the ING Funds Complex, including the Fund. Such information included, among other things: (1) a detailed analysis of the Fund’s performance, including attribution analyses, which had been provided at regular Board meetings; and (2) a presentation to the I/B/F IRC, at its September 11, 2007 meeting, from Tradewinds’ representatives regarding the Fund.
The Board’s consideration of whether to approve the New Agreement took into account several factors including, but not limited to, the following: (1) the Adviser’s view with respect to Tradewinds’ management of the Fund; (2) the nature and quality of the services to be provided by Tradewinds under the New Agreement; (3) the personnel, operations, and investment management capabilities of Tradewinds after the consummation of the Transaction, including Tradewinds’ representations that the portfolio management personnel providing day-to-day management services to the Fund would remain in place through the closing of the Transaction and would continue to manage assets after the close; (4) the fairness of the compensation under the New Agreement in light of the services to be provided by Tradewinds and the fact that there would be no change in the projected profitability of Tradewinds or the Adviser in connection with the Transaction; (5) that the sub-advisory fee rate payable by the Adviser would remain unchanged after the Transaction is completed and the Transaction would not affect the advisory fee payable by the Fund to the Adviser; (6) Tradewinds’ representations that the Transaction would not adversely affect the nature and quality of services provided to the Fund and that the Transaction was not expected to have a material adverse effect on the ability of Tradewinds to provide those services; (7) Tradewinds’ operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws, which had previously been approved by the Board as part of its oversight of the Fund and other funds in the ING Funds complex; and (8) Tradewinds’ Code of Ethics, which has previously been approved for the Fund and other ING Funds, and related procedures for complying with that Code.
After its deliberation, the Board reached the following conclusions: (1) Tradewinds should be appointed as the Fund’s Sub-Adviser under the New Agreement and continue to provide advisory services to the Fund; and (2) the sub-advisory fee rate payable by the Adviser to Tradewinds is reasonable in the context of all factors considered by the Board. The Board also noted that there would be further opportunity for review of the Fund’s more recent performance and other relevant factors in the course of deliberations for the next annual renewal of the Advisory Contract in November 2008.
Based on these conclusions and other factors, the Board voted to approve the New Agreement. During this approval 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 ING Greater China Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund underperformed 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 fourth quintile of its Morningstar category for the most recent calendar quarter and one-year periods, and the fifth (lowest) quintile for the year-to-date period.
In analyzing this performance data, the Board took into account: (1) the Fund was launched in December 2005; and (2) the Management’s analysis regarding the negative effect of stock selection in the energy and financial sectors on the Fund’s performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Greater China 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 0.10% administration fee) for the Fund is equal to the median and above 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;
235
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
(3) the Fund was launched in December 2005 and it is reasonable to permit the Sub-Adviser to continue to manage the Fund to appropriately evaluate longer-term 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, 2008. 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 ING Index Plus International Equity Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 and one-year periods, and the fifth (lowest) quintile for the most recent calendar quarter.
In analyzing this performance data, the Board took into account the Fund was launched in December 2005, and therefore had a limited history for purposes of evaluating performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Index Plus International Equity 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 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 was launched in December 2005 and it is reasonable to permit the Sub-Adviser to continue to manage the Fund to appropriately evaluate the longer-term 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, 2008. 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 ING International Capital Appreciation Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING International Capital Appreciation 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 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
236
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
ING International Growth Opportunities Fund (formerly ING International Fund)
In considering whether to approve the renewal of the Advisory and Sub-Advisory Contracts for ING International Growth Opportunities Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund outperformed its Morningstar category median for all periods presented, with the exception of the three-year and five-year periods, during which it underperformed; (2) the Fund outperformed its primary benchmark for the most recent calendar quarter, one-year, and ten-year periods, but underperformed for the year-to-date, three-year, and five-year periods; and (3) the Fund is ranked in the second quintile of its Morningstar category for the year-to-date period, the third quintile for the most recent calendar quarter and one-year periods, and the fourth quintile for the three-year and five-year periods.
In analyzing this performance data, the Board took into account that in April 2006 the portfolio managers to the Fund were changed the Fund has shown favorable performance since that change.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING International Growth Opportunities 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 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 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) there was a change in the Fund’s portfolio managers in April 2006, and it is reasonable to allow the Sub-Adviser to continue to manage the Fund to assess 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, 2008. 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 ING International Real Estate Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 all periods presented.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING International Real Estate 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 ING International Real Estate Fund, as compared to its SPG, including that: (a) the management fee (inclusive of 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 Management’s waiver of a portion of the advisory fee otherwise receivable from the Fund, which results in lower total operating expenses.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s management fee rate is
237
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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 was launched in February 2006, and it is reasonable to permit the Fund to establish a longer operating history 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, 2008. 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 ING International SmallCap Multi-Manager Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund outperformed its Morningstar category median for all periods presented; (2) the Fund outperformed its primary benchmark for all periods presented, with the exception of the five-year period, during which it underperformed; and (3) the Fund is ranked in the first (highest) quintile for the most recent calendar quarter, year-to-date, one-year, and three-year periods, and the second quintile for the five-year period.
In analyzing this performance data, the Board took into account that: (1) a second investment “sleeve” managed by an additional Sub-Adviser was added to the Fund in November 2006 to address capacity constraints; and (2) at that time, the Fund’s strategy was modified to reflect the investment style of the new Sub-Adviser. The Board also noted that, as is discussed below, at its November 2007 meeting the Board would be asked to approve a third Sub-Advisory Contract with a third Sub-Adviser to the Fund.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING International SmallCap Multi-Manager 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 0.10% administration fee) for the Fund is above the median and above the average management fees of the funds in its SPG; and (b) the expense ratio for the Fund is above the median and above 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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
New Sub-Advisory Contracts for ING International SmallCap Multi-Manager Fund
Batterymarch Financial Management, Inc.
The ING International SmallCap Multi-Manager Fund has been sub-advised by Acadian Asset Management, LLC (f/k/a Acadian Asset Management, Inc.) since March 1, 2005. At its September 21, 2006 meeting, the Board approved a new Sub-Advisory Contract with Batterymarch Financial Management, Inc. (“Batterymarch”) under which Batterymarch would serve as Sub-Adviser to an additional investment sleeve of the Fund. The new Sub-Advisory Contract became effective on November 1, 2006.
In determining whether to approve the Sub-Advisory Contract with Batterymarch, the Board received and evaluated such information as it deemed necessary for an informed determination of whether the 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 Batterymarch included the following: (1) Batterymarch’s presentation before the I/B/F IRC at its September 6, 2006 meeting; (2) memoranda and related materials provided to the Board in
238
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
advance of its September 21, 2006 meeting discussing: (a) Management’s rationale for recommending that Batterymarch serve as an additional Sub-Adviser to the Fund, (b) the performance of Batterymarch in managing the Batterymarch International Small-Cap Equity Composite (the “Batterymarch Composite”), which is managed in an investment style that mirrors its proposed management of the Fund (with such performance being compared against relevant benchmark indices and Morningstar Category averages), and (c) the expertise of Batterymarch in managing small-capitalization products; (3) FACT sheets for the Fund that provide information about the performance of the Batterymarch Composite and the performance of the Fund’s proposed SPG; (4) Batterymarch’s responses to inquiries from K&L Gates; (5) supporting documentation, including a copy of the form of Sub-Advisory Contract with Batterymarch; (6) an analysis regarding the effect that the proposed Sub-Adviser addition would have on the Adviser’s profitability; and (7) other information relevant to the Board’s evaluation.
In reaching its decision to engage Batterymarch as a 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) the Adviser’s view with respect to the reputation of Batterymarch as a manager to similar funds; (2) Batterymarch’s strength and reputation in the industry; (3) the nature and quality of the services to be provided by Batterymarch under the proposed Sub-Advisory Contract; (4) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of Batterymarch and its fit among the stable of managers in the ING Funds line-up; (5) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by Batterymarch and the projected profitability of Batterymarch as one of the Fund’s Sub-Advisers; (6) the costs for the services to be provided by Batterymarch, including that the management fee would not change after the appointment of Batterymarch; (7) the sub-advisory fee payable by the Adviser to Batterymarch and the resulting decrease in the profitability of the Adviser arising out of the addition of a second sub-adviser and the higher sub-advisory fee payable by the Adviser to Batterymarch; (8) Batterymarch’s operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws; (9) the appropriateness of the selection of Batterymarch in light of the Fund’s investment objective and investor base; and (10) Batterymarch’s Code of Ethics, which had been approved for the Fund by the Board at its September 2006 meeting, and related procedures for complying with that Code.
After its deliberation, the Board reached the following conclusions; (1) Batterymarch should be appointed to serve as an additional Sub-Adviser to the Fund under the new Sub-Advisory Agreement with Batterymarch; (2) the sub-advisory fee rate payable by the Adviser to Batterymarch is reasonable in the context of all factors considered by the Board; and (3) Batterymarch maintains an appropriate compliance program, with this conclusion based upon, among other things, a representation from the Fund’s CCO that Batterymarch’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.
Schroder Investment Management North America Inc. and Schroder Investment Management North America Limited
As touched upon above, the ING International SmallCap Multi-Manager Fund has been sub-advised and co-sub-advised by Acadian Asset Management, LLC (f/k/a Acadian Asset Management, Inc.) and Batterymarch since March 1, 2005 and November 1, 2006, respectively. At its November 30, 2007 meeting, the Board approved new Sub-Advisory Contracts with Schroder Investment Management North America Inc. (“Schroder Inc.”) and Schroder Investment Management North America Limited (“Schroder Limited,” and together with Schroder Inc., “Schroders”) under which Schroder Inc. would serve as Sub-Adviser and Schroder Limited would serve as Sub-Sub-Adviser to an additional investment sleeve of the Fund. The new Sub-Advisory Contracts became effective on December 17, 2007.
In determining whether to approve these Contracts, the Board received and evaluated such information as it deemed necessary for an informed determination of whether the Contracts should be approved for the Fund. The materials provided to the Board to inform
239
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
its consideration of whether to approve the Sub-Advisory Contracts with Schroders included the following: (1) a memorandum discussing: (a) Management’s rationale for recommending an additional Sub-Adviser to the Fund, (b) the reasons Management recommended that Schroders Inc. be added as an additional Sub-Adviser to the Fund, (c) the reasons Management recommended that Schroders Limited be added as a Sub-Sub-Adviser to the Fund, and (d) the performance of Schroders in managing the Schroders’ International Small Companies Composite (the “Schroders Composite”), in an investment style that mirrors their proposed management of the Fund, with such performance being compared against a relevant benchmark index and Morningstar Category average and rank, and (e) the expertise of Schroders in managing small-capitalization products; (2) information about the proposed new portfolio management team for the Fund and the changes that would be made to the Fund’s investment strategies to accommodate Schroders’ investment style in the event Schroders is appointed as an additional sub-adviser and a sub-sub-adviser to the Fund; (3) Schroders’ responses to inquiries from K&L Gates; (4) supporting documentation, including copies of the form of Sub-Advisory Contract and Sub-Sub-Advisory Contract with Schroders; and (5) other information relevant to the Board’s evaluation.
In reaching its decision to engage Schroders Inc. as a Sub-Adviser to the Fund and Schroders Limited as a Sub-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) the Adviser’s view with respect to the reputation of Schroders; (2) Schroders’ strength and reputation in the industry; (3) Schroders’ experience and skill in managing the Schroders Composite; (4) the nature and quality of the services to be provided by Schroders under the proposed Sub-Advisory Contracts; (5) the prior performance of the Schroders Composite, compared to (a) the Fund’s benchmark index; and (b) the Fund’s Morningstar category average; (6) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of Schroders and its fit among the stable of managers in the ING Funds line-up; (7) the fairness of the compensation under the Sub-Advisory Contracts in light of the services to be provided by and the projected profitability of Schroders as the Fund’s additional Sub-Adviser and Sub-Sub-Adviser; (8) the costs for the services to be provided by Schroders, including that the management fee payable by the Fund would not change after the appointment of Schroders; (9) the sub-advisory fee payable by the Adviser to Schroders and the resulting decrease in the profitability of the Adviser arising out of the addition of a second sub-adviser; (10) Schroders’ operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws; (11) Schroders’ financial condition; (12) the appropriateness of the selection of Schroders in light of the Fund’s proposed investment objective and investor base; and (13) Schroders’ Code of Ethics, which had been approved for the Fund by the Board at its November 2007 meeting, and related procedures for complying with that Code.
After its deliberation, the Board reached the following conclusions; (1) Schroders should be appointed to provide sub-advisory services to the Fund; (2) the sub-advisory fee rate payable by the Adviser to Schroders is reasonable in the context of all factors considered by the Board; and (3) Schroders maintains an appropriate compliance program, with this conclusion based upon based upon, among other things, a representation from the Trusts’ CCO that Schroders’ 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 Contracts for the Fund. During their deliberations, 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 ING International Value Choice Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 fifth (lowest) quintile of its Morningstar category for all periods presented.
In analyzing this performance data, the Board took into account: (1) the Fund launched in February 2005 and, therefore, had a limited operating history for the purpose of analyzing Fund performance;
240
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
(2) Management’s representations that it would continue to monitor the Fund’s performance to determine if longer-term performance improves; and (3) Management’s discussions of the reasons why Sub-Adviser’s investment style results in underperformance vis-à-vis peers during certain periods, and its expectation that longer-term performance will improve.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING International Value Choice 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 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 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 that Management would continue to monitor, and the Board or the I/B/F IRC would periodically review, the Fund’s performance, it is reasonable to permit the Sub-Adviser to continue to manage the Fund to assess whether Management’s expectations of improved longer-term performance are realized; 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, 2008. During this renewal process, different Board members may have given different weight to different individual factors and related conclusions.
Approval of New Sub-Advisory Contract for ING International Value Choice Fund
Tradewinds Global Investors, LLC (“Tradewinds”) has managed the ING International Value Choice Fund, since April 2006 under the terms of a Sub-Advisory Contract with the Adviser (the “Former Agreement”). (Prior to that, a predecessor of Tradewinds managed the Fund.)
On November 13, 2007, Nuveen Investments, Inc. (“Nuveen”), the parent of Tradewinds, was acquired by Windy City Investments, Inc. (“Windy City”), a corporation formed by private equity investors led by Madison Dearborn Partners, LLC (the “Transaction”). As a result, Tradewinds, previously a wholly-owned subsidiary of Nuveen, became an indirect wholly-owned subsidiary of Windy City. The 1940 Act requires that an agreement under which a registered investment adviser serves as the sub-adviser to an investment company must provide for the automatic termination of the agreement in the event of its “assignment” (as such term is defined under the 1940 Act). A sale of a controlling block of an investment adviser’s voting securities generally is deemed to result in an assignment of the investment adviser’s advisory agreements. The consummation of the Transaction constituted a sale of a controlling block of voting securities of Tradewinds, resulting in the assignment and automatic termination of the Former Agreement.
In order for management of the Fund to continue uninterrupted after the sale, the Adviser entered into a new Sub-Advisory Contract with Tradewinds effective November 16, 2007 under which Tradewinds has continued to provide day-to-day management services to the Fund (the “New Agreement”). The Transaction did not result in a change to the personnel managing the Fund or its investment strategy.
In anticipation of the Transaction, at a meeting held on September 12, 2007, the Board, including a majority of the Independent Trustees, determined to re-appoint Tradewinds as sub-adviser to the Fund under the New Agreement. In determining whether to approve the New Agreement for the Fund, the Board received and evaluated such information as it deemed necessary for an informed determination of whether the New Agreement should be approved for the Fund. The materials provided to the Board in support of the Sub-Advisory Contract with Tradewinds included the following: (1) a memorandum discussing the change of control of Tradewinds and the resulting assignment and automatic termination of the Former Agreement; (2) responses to questions posed by K&L Gates on behalf of the Independent Trustees; (3) supporting documentation, including a copy of the form of the New Agreement; and (4) other
241
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
information relevant to the Board’s evaluation. In addition, the Board considered the information provided periodically throughout the year in presentations to the Board by Management and by Tradewinds in connection with its management of the funds in the ING Funds Complex, including the Fund. Such information included, among other things: (1) a detailed analysis of the Fund’s performance, including attribution analyses, provided at regular Board meetings; and (2) a presentation to the I/B/F IRC, at the Committee’s September 11, 2007 meeting, from Tradewinds representatives regarding ING International Value Choice Fund.
The Board’s consideration of whether to approve the New Agreement took into account several factors including, but not limited to, the following: (1) the Adviser’s view with respect to Tradewinds’ management of the Fund; (2) the nature and quality of the services to be provided by Tradewinds under the New Agreement; (3) the personnel, operations, and investment management capabilities of Tradewinds after the consummation of the Transaction, including Tradewinds’ representations that the portfolio management personnel providing day-to-day management services to the Fund would remain in place through the closing of the Transaction and Tradewinds continue to manage assets after the close; (4) the fairness of the compensation under the New Agreement in light of the services to be provided by Tradewinds and the fact that there would be no change in the advisory or sub-advisory fees payable with respect to the Fund, or the projected profitability of Tradewinds or the Adviser, in connection with the Transaction; (5) that the sub-advisory fees payable by the Adviser would remain unchanged and would not affect the advisory fee payable by the Fund to the Adviser; (6) Tradewinds’ representations that the Transaction would not adversely affect the nature and quality of services provided to the Fund and that the Transaction was not expected to have a material adverse effect on the ability of Tradewinds to provide those services; (7) Tradewinds’ operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws, which had previously been approved by the Board as part of its oversight of the Fund and other funds in the ING Funds complex; and (8) Tradewinds’ Code of Ethics, which has previously been approved for the Fund and other ING Funds, and related procedures for complying with that Code.
After its deliberation, the Board reached the following conclusions: (1) Tradewinds should be appointed as the Fund’s Sub-Adviser under the New Agreement and continue to provide advisory services to the Fund; and (2) the sub-advisory fee rate payable by the Adviser to Tradewinds is reasonable in the context of all factors considered by the Board. The Board also noted that there would be further opportunity for review of the Fund’s more recent performance and other relevant factors in the course of deliberations for the next annual renewal of the Advisory Contract in November 2008.
Based on these conclusions and other factors, the Board voted to approve the New Agreement. During this approval 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 ING Russia Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (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 underperformed its primary benchmark for the most recent calendar quarter, year-to-date, and one-year periods, but outperformed for the three-year and five-year periods; and (3) the Fund is ranked in the first (highest) quintile of its Morningstar category for the one-year, three-year, and five-year periods, and the fifth (lowest) quintile for the most recent calendar quarter and year-to-date periods.
In analyzing this performance data, the Board took into account Management’s representations regarding the effect of the Russian equity markets on the Fund’s more recent performance.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING Russia 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; (2) the pricing structure (including the expense ratio to be borne by shareholders) of ING Russia Fund, as compared to its SPG, including that: (a) the management fee (inclusive of the advisory fee and 0.10% administration fee) for
242
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
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 Management’s representations that a higher management fee rate is reasonable in order to obtain the Sub-Adviser’s management expertise in the developing Russian markets.
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, 2008. 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 ING International Value Fund, the Board considered that, based on performance data for the periods ended June 30, 2007: (1) the Fund outperformed its Morningstar category median for the one-year, five-year, and ten-year periods, but underperformed for the most recent calendar quarter, year-to-date, and three-year periods; (2) the Fund outperformed its primary benchmark for the one-year, five-year, and ten-year periods, but underperformed for the most recent calendar quarter, year-to-date, and three-year periods; and (3) the Fund is ranked in the second quintile of its Morningstar category for the five-year period, the third quintile for the one-year period, the fourth quintile for the year-to-date and three-year periods, and the fifth (lowest) quintile for the most recent calendar quarter.
In considering the fees payable under the Advisory and Sub-Advisory Contracts for ING International Value 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 the advisory fee and 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, 2008. 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 ADVISORY AND SUB-ADVISORY CONTRACTS
Section 15 of the 1940 Act mandates that, when a series of a Trust enters into a new advisory or sub-advisory arrangement, the Board, including a majority of the Independent Trustees, must approve the new arrangement. Therefore, in order for a new series of a Trust to be launched, the Board must approve the Advisory and Sub-Advisory Contracts for that series prior to the commencement of its operations.
ING Asia-Pacific Real Estate Fund
At a meeting held on September 12, 2007, the Board considered the approval of new Advisory and Sub-Advisory Contracts for ING Asia-Pacific Real Estate Fund, a new series of ING Mutual Funds.
In determining whether to approve the Advisory and Sub-Advisory Contracts for ING Asia-Pacific Real Estate Fund, the Board received and evaluated such information as it deemed necessary for an informed determination of whether each agreement, and the proposed policies and procedures for the Fund, should be approved. The materials provided to the Board in
243
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
support of the Fund’s advisory and sub-advisory arrangements included the following: (1) a memorandum presenting Management’s rationale for requesting the launch of the Fund that discusses, among other things: (a) the Adviser’s experience and expertise in the management of other funds within the ING Funds complex, (b) the experience of the Adviser overseeing sub-advisers to other funds within the ING Fund complex, including ING Clarion Real Estate Securities L.P. (“ING Clarion”), the proposed Sub-Adviser to the Fund; and (c) ING Clarion’s experience in managing real estate investment mandates, including global mandates; (2) information about the Fund’s proposed investment objective and strategies and anticipated portfolio characteristics; (3) FACT sheets for the Fund that compare the Fund’s proposed fee structure to its comparable SPG and Morningstar/Lipper category medians; (4) supporting documentation, including copies of the forms of Advisory and Sub-Advisory Contracts for the Fund; and (5) other information relevant to the Board’s evaluation. In addition, the Board considered the information provided periodically throughout the year in presentations to the Board by the Adviser in the context of the Adviser’s oversight of Sub-Advisers managing other funds in the ING Funds Complex, and by ING Clarion in connection with its management of other ING Funds.
At the September 12, 2007 Meeting, the Board noted that, in managing the Fund, the Adviser and ING Clarion each would be subject to procedures adopted pursuant to Rule 206(4)-7 under the Investment Advisers Act of 1940 (the “Advisers Act”) that had been previously approved by the Board in connection with other funds in the ING Funds Complex.
The Board’s consideration of whether to approve the Advisory Contract with the Adviser on behalf of the Fund took into account several factors including, but not limited to, the following: (1) the nature and quality of the services to be provided by the Adviser to the Fund under the proposed Advisory Contract; (2) the Adviser’s experience as a manager-of-managers overseeing sub-advisers to other funds within the ING Funds complex, including other real estate funds managed by ING Clarion; (3) the Adviser’s strength and reputation within the industry; (4) the fairness of the compensation under the proposed Advisory Contract in light of the services to be provided to the Fund and taking into account the sub-advisory fees payable by the Adviser to ING Clarion; (5) the fairness of the Adviser’s compensation under an Advisory Contract with breakpoint discounts where the asset levels necessary to achieve breakpoint discounts had not yet been achieved; (6) the pricing structure (including the estimated expense ratio to be borne by shareholders) of the Fund, including that: (a) the proposed management fee (inclusive of the advisory fee and a 0.10% administration fee) for the Fund is above the average and the median management fees of the funds in the Fund’s SPG, and (b) the estimated expense ratio for the Fund is above the average and the median expense ratios of the funds in the Fund’s SPG; (7) the projected profitability of the Adviser when sub-advisory fees payable by the Adviser to ING Clarion are taken into account; (8) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Adviser, including its management team’s expertise in the management of other mutual funds; (9) the Adviser’s compliance capabilities, as demonstrated by, among other things, its policies and procedures designed to prevent violations of the Federal securities laws, which had previously been approved by the Board in connection with its oversight of other funds in the ING Funds Complex; (10) the information that had been provided by the Adviser at regular Board meetings, and in anticipation of the September 2007 meeting, with respect to its capabilities as a manager-of-managers in overseeing similar Funds; and (11) “fall-out benefits” to the Adviser and its affiliates that were anticipated to arise from the Adviser’s management of the Fund.
In reviewing the proposed Sub-Advisory Contract with ING Clarion the Board considered a number of factors, including, but not limited to, the following: (1) the Adviser’s view of the reputation of ING Clarion as manager to other funds in the ING Funds Complex, including other U.S., global, and international real estate funds; (2) ING Clarion’s strength and reputation in the industry; (3) the information that had been provided by ING Clarion in advance of the September 2007 meeting with respect to ING Clarion’s sub-advisory services, including its performance in managing the international portions of ING Clarion’s global composite; (4) the nature and quality of the services to be provided by ING Clarion under the proposed Sub-Advisory Contract; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of ING Clarion, including its management team’s expertise in the management of other funds employing an international or global investment
244
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
mandate; (6) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by and the projected profitability of ING Clarion as the Fund’s Sub-Adviser; (7) the costs for the services to be provided by ING Clarion; (8) ING Clarion’s operations and compliance program, including its policies and procedures adopted pursuant to Rule 206(4)-7 under the Advisers Act, which had previously been approved by the Board as part of its oversight of other funds in the ING Funds Complex; (9) ING Clarion’s financial condition; (10) the appropriateness of the selection of ING Clarion in light of the Fund’s proposed investment objectives and prospective investor base; and (11) ING Clarion’s Code of Ethics, which had previously been approved for other ING Funds.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s proposed management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s estimated expense ratio is reasonable in the context of all factors considered by the Board; (3) the sub-advisory fee rate payable by the Adviser to ING Clarion is reasonable in the context of all factors considered by the Board; and (4) each of the Adviser and ING Clarion maintains an appropriate compliance program, with this conclusion based upon the Board’s previous and ongoing review of the compliance program. Based on these conclusions and other factors, the Board voted to approve the Advisory and Sub-Advisory Contracts for the Fund. During its deliberations, different Board members may have given different weight to different individual factors and related conclusions.
ING European Real Estate Fund
At a meeting held on September 12, 2007, the Board considered the approval of new Advisory and Sub-Advisory Contracts for ING European Real Estate Fund, a new series of ING Mutual Funds.
In determining whether to approve the Advisory and Sub-Advisory Contracts for ING European Real Estate Fund, the Board received and evaluated such information as it deemed necessary for an informed determination of whether each agreement, and the proposed policies and procedures for the Fund, should be approved. The materials provided to the Board in support of the Fund’s advisory and sub-advisory arrangements included the following: (1) a memorandum presenting Management’s rationale for requesting the launch of the Fund that discusses, among other things: (a) the Adviser’s experience and expertise in the management of other funds within the ING Funds complex, (b) the experience of the Adviser overseeing sub-advisers to other funds within the ING Fund complex, including ING Clarion, the proposed Sub-Adviser to the Fund; and (c) ING Clarion’s experience in managing real estate investment mandates, including global mandates; (2) information about the Fund’s proposed investment objective and strategies and anticipated portfolio characteristics; (3) FACT sheets for the Fund that compare the Fund’s proposed fee structure to its comparable SPG and Morningstar/Lipper category medians; (4) supporting documentation, including copies of the forms of Advisory and Sub-Advisory Contracts for the Fund; and (5) other information relevant to the Board’s evaluation. In addition, the Board considered the information provided periodically throughout the year in presentations to the Board by the Adviser in the context of the Adviser’s oversight of other sub-advisers managing funds in the ING Funds Complex, and by each ING Clarion in connection with its management of other funds in the ING Funds Complex.
At the September 12, 2007 Meeting, the Board noted that, in managing the Fund, the Adviser and ING Clarion each would be subject to procedures adopted pursuant to Rule 206(4)-7 under the Advisers Act that had been previously approved by the Board in connection with other funds in the ING Funds Complex.
The Board’s consideration of whether to approve the Advisory Contract with the Adviser on behalf of the Fund took into account several factors including, but not limited to, the following: (1) the nature and quality of the services to be provided by the Adviser to the Fund under the proposed Advisory Contract; (2) the Adviser’s experience as a manager-of-managers overseeing sub-advisers to other funds within the ING Funds complex, including other real estate funds managed by ING Clarion; (3) the Adviser’s strength and reputation within the industry; (4) the fairness of the compensation under the proposed Advisory Contract in light of the services to be provided to the Fund and taking into account the sub-advisory fees payable by the Adviser to ING Clarion; (5) the fairness of the Adviser’s compensation under an Advisory Contract with breakpoint discounts where the asset levels necessary to achieve breakpoint discounts had not yet been achieved; (6) the pricing structure (including the estimated expense ratio to be borne
245
ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
by shareholders) of the Fund, including that: (a) the proposed management fee (inclusive of the advisory fee and a 0.10% administration fee) for the Fund is above the average and higher than the median management fees of the funds in the Fund’s SPG, and (b) the estimated expense ratio for the Fund is above the average and higher than the median expense ratios of the funds in the Fund’s SPG; (7) the projected profitability of the Adviser when sub-advisory fees payable by the Adviser to ING Clarion are taken into account; (8) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Adviser, including its management team’s expertise in the management of other ING Funds; (9) the Adviser’s compliance capabilities, as demonstrated by, among other things, its policies and procedures designed to prevent violations of the Federal securities laws, which had previously been approved by the Board in connection with its oversight of other funds in the ING Funds Complex; (10) the information that had been provided by the Adviser at regular Board meetings, and in anticipation of the September 2007 meeting, with respect to its capabilities as a manager of-managers in overseeing similar funds; and (11) “fall-out benefits” to the Adviser and its affiliates that were anticipated to arise from the Adviser’s management of the Fund.
In reviewing the proposed Sub-Advisory Contract with ING Clarion the Board considered a number of factors, including, but not limited to, the following: (1) the Adviser’s view of the reputation of ING Clarion as manager to other funds in the ING Funds Complex, including other U.S., global, and international real estate funds; (2) ING Clarion’s strength and reputation in the industry; (3) the information that had been provided by ING Clarion in advance of the September 2007 meeting with respect to ING Clarion’s sub-advisory services, its performance in managing the international portions of ING Clarion’s global composite; (4) the nature and quality of the services to be provided by ING Clarion under the proposed Sub-Advisory Contract; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of ING Clarion, including its management team’s expertise in the management of other funds managed in accordance with an international or global investment mandate; (6) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by and the projected profitability of ING Clarion as the Fund’s Sub-Adviser; (7) the costs for the services to be provided by ING Clarion; (8) ING Clarion’s operations and compliance program, including its policies and procedures adopted pursuant to Rule 206(4)-7 under the Advisers Act, which had previously been approved by the Board as part of its oversight of other funds in the ING Funds Complex; (9) ING Clarion’s financial condition; (10) the appropriateness of the selection of ING Clarion in light of the Fund’s proposed investment objectives and prospective investor base; and (11) ING Clarion’s Code of Ethics, which had previously been approved for other ING Funds.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s proposed management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s estimated expense ratio is reasonable in the context of all factors considered by the Board; (3) the sub-advisory fee rate payable by the Adviser to ING Clarion is reasonable in the context of all factors considered by the Board; and (4) each of the Adviser and ING Clarion maintains an appropriate compliance program, with this conclusion based upon the Board’s previous and ongoing review of the compliance program. Based on these conclusions and other factors, the Board voted to approve the Advisory and Sub-Advisory Contracts for the Fund. During its deliberations, different Board members may have given different weight to different individual factors and related conclusions.
246
(THIS PAGE INTENTIONALLY LEFT BLANK)
(THIS PAGE INTENTIONALLY LEFT BLANK)
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 Growth and Income Fund
ING Real Estate Fund
Domestic Equity Fund-of-Funds
ING Strategic Allocation Conservative Fund
ING Strategic Allocation Growth Fund
ING Strategic Allocation Moderate Fund
Domestic Equity Growth Funds
ING 130/30 Fundamental Research Fund
ING Equity Dividend Fund
ING Fundamental Research Fund
ING LargeCap Growth 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 Equity Fund
ING Index Plus LargeCap Equity Fund II
ING Index Plus LargeCap Equity Fund III
ING Index Plus LargeCap Equity Fund IV
ING Index Plus LargeCap Equity Fund V
ING Index Plus LargeCap Equity Fund VI
ING Index Plus LargeCap Equity Fund VII
ING Index Plus LargeCap Fund
ING Index Plus MidCap Fund
ING Index Plus SmallCap Fund
Domestic Equity Value Funds
ING Financial Services Fund
ING LargeCap Value Fund
ING SmallCap Value Multi-Manager Fund
ING Value Choice Fund
Fixed-Income Funds
ING GNMA Income Fund
ING High Yield Bond Fund
ING Intermediate Bond Fund
ING National Tax-Exempt Bond Fund
Global Equity Funds
ING Global Equity Dividend Fund
ING Global Natural Resources Fund
ING Global Real Estate Fund
ING Global Science and Technology Fund
ING Global Value Choice Fund
International Equity Funds
ING Asia-Pacific Real Estate Fund
ING Disciplined International SmallCap 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 Equity Dividend Fund
ING International Growth Opportunities Fund
ING International Real Estate Fund
ING International SmallCap Multi-Manager Fund
ING International Value Fund
ING International Value Choice Fund
ING International Value Opportunities Fund
ING Russia Fund
Global and International Fixed-Income Funds
ING Emerging Markets Fixed Income Fund
ING Global Bond Fund
International Fund-of-Funds
ING Diversified International Fund
Loan Participation Fund
ING Senior Income Fund
Money Market Funds*
ING Money Market Fund
ING Classic Money Market Fund
| |
| * | 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
DST Systems, Inc.
P.O. Box 419368
Kansas City, Missouri 64141
Custodian
The Bank of New York Mellon Corporation
One Wall Street
New York, New York 10286
Legal Counsel
Dechert
1775 I Street, N.W.
Washington, D.C. 20006
For more complete information, or to obtain a prospectus on any ING fund, please call your Investment Professional or ING 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 (0408-062408)
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. |
| |
| (b) | There were no significant changes in the registrant’s internal controls that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| (a)(1) | The Code of Ethics is not required for the semi-annual filing. |
| |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT. |
| |
| (a)(3) | Not required for semi-annual filing. |
| |
| (b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. |
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
| | | | | |
| By | | /s/ Shaun P. Mathews | | |
| |
| | |
| | Shaun P. Mathews
President and Chief Executive Officer | | |
| | | | | |
| Date: | | July 9, 2008 | | |
| |
| | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | | |
| By | | /s/ Shaun P. Mathews | | |
| |
| | |
| | Shaun P. Mathews
President and Chief Executive Officer | | |
| | | | | |
| Date: | | July 9, 2008 | | |
| |
| | |
| | | | | |
| By | | /s/ Todd Modic | | |
| |
| | |
| | Todd Modic
Senior Vice President and Chief Financial Officer | | |
| | | | | |
| Date: | | July 9, 2008 | | |
| |
| | |
