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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-7978
ING Mayflower Trust
(Exact name of registrant as specified in charter)
7337 E. Doubletree Ranch Rd., Scottsdale, AZ | 85258 | |
(Address of principal executive offices) | (Zip code) |
CT Corporation System, 101 Federal Street, Boston, MA 02110
(Name and address of agent for service)
(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, 2008 to October 31, 2009 |
Item 1. Reports to Stockholders.
The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-l under the Act (17 CFR 270.30e-l):
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![(WORLD GRAPHIC)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643502a.gif)
Annual Report
October 31, 2009
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 Emerging Countries Fund
n ING European Real Estate Fund
n ING Foreign Fund
n ING Greater China Fund
n ING Index Plus International Equity Fund
n ING International Capital Appreciation Fund
n ING International Real Estate Fund
n | ING International SmallCap Multi-Manager Fund |
n ING International Value Fund
n ING International Value Choice Fund
n ING Russia Fund
Global and International Fixed-Income Funds
n ING Global Bond Fund
International Fund-of-Funds
n ING Diversified International Fund
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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
![(ING FUNDS LOGO)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643500.gif)
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Tax Information | 177 | |||||||
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EX-99.CERT | ||||||||
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EX-99.CODE ETH |
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You will be notified by e-mail when these communications become available on the internet. Documents that are not available on the internet will continue to be sent by mail.
PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how to vote proxies related to portfolio securities is available: (1) without charge, upon request, by calling Shareholder Services toll-free at (800) 992-0180; (2) on the Funds’ website at www.ingfunds.com; and (3) on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. Information regarding how the Funds voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds’ website at www.ingfunds.com and on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO HOLDINGS
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330; and is available upon request from the Funds by calling Shareholder Services toll-free at (800) 992-0180.
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PRESIDENT’S LETTER
![(PHOTO OF SHAUN P. MATHEWS)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp16435s3.gif)
Dear Shareholder,
October witnessed events reminiscent of times past for investors and baseball fans alike. The New York Yankees returned to the World Series after a six-year hiatus, and double-digit unemployment returned to the United States after a 26-year break. New Yorkers may have regarded the Yankees’ championship as a restoration of order to the world, but investors found little relief as unemployment rose to 10.2%.(1) Nevertheless, the economy did not collapse and the markets did not melt down. Although higher unemployment is not good news, most recognize that it represents a lagging effect of the recession, and as such is likely to persist even after the economy has swung into recovery.
On the other hand, fund investors seem still to be focusing more on safety than appreciation potential. Year-to-date, investors have moved large amounts out of money market funds. They have been adding significantly to bond funds, but disinvesting from stock funds.(2)
Volatile equity markets over the past year and a half have led many investors to seek refuge in fixed income investments, a move that may have made sense when the highest priority was to avoid losses. Despite October’s news, it seems like a good time to start thinking longer term again; this may be an opportunity for investors to rethink their balance between potential risk and potential return.
Of course, only you and your financial advisor can determine what is best for your particular situation, so we encourage you to discuss these points thoroughly with your advisor before taking any action in your portfolio.
Thank you for your continued confidence in ING Funds. We look forward to serving your investment needs in the future.
Sincerely,
![(-s- Shaun P. Mathews)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp16435s4.gif)
Shaun P. Mathews
President and Chief Executive Officer
ING Funds
November 6, 2009
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) | Source: The Employment Situation — October 2009, Bureau of Labor Statistics, U.S. Department of Labor. |
(2) | Source: Investment Company Institute, Trends in Mutual Fund Investing, October 2009, http://www.ici.org/research/stats/trends/trends_10_09.com |
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Market Perspective: Year Ended October 31, 2009
Global equities in the form of the MSCI World® Index(1) measured in local currencies, including net reinvested dividends (“MSCI” for regions discussed below), returned 18.5% in the second half of the fiscal year and 11.6% for the entire fiscal year ended October 31, 2009. (The MSCI World® Index returned 18.42% for the fiscal year ended October 31, 2009, measured in U.S. dollars.) By the end of September equities had rallied 54% from the March 9th low point, but in increasingly nervous conditions pulled back in October. In currencies, the dollar, perhaps the new funding currency for carry trades because of very low dollar interest rates, resumed a weakening trend, falling 10.7% against the euro in the second half of the fiscal year, 10.9% against the pound and 6.1% against the yen. For the entire fiscal year, dollar losses were 11.8%, 0.3% and 7.4% against the euro, pound and yen, respectively.
From its earliest days in mid-March, the resurgence of risky asset classes like equities encountered skeptics. It was based they said, not on good economic news but news that was merely less awful. Banks’ new-found earnings relied on extraordinarily low interest rates to depositors and “special” items. The U.S. government’s willingness to incur $1.75 trillion in additional debt to bail out banks, insurers, auto companies and people who bought housing beyond their means, while the Federal Reserve printed money to buy the debt and keep interest rates down, would have its day of inflationary reckoning.
But the believers would have none of it. Conditions don’t go from bad to good in one step, they said. The news has to get less bad first. The richest harvest must start with a few green shoots in an empty field. We heard about “green shoots” all spring.
However described, the news on which markets advanced was on balance improving, albeit weakly and erratically.
In housing, the Standard & Poor’s (“S&P”)/Case-Shiller National U.S. Home Price Index(2) of house prices in 20 cities sank a record 19% year-over-year in January. But from there the declines moderated to 11.3% in the most recent report. The housing market became heavily influenced by an $8,000 government tax credit to first-time home buyers. But it would expire on November 30, 2009*, and while existing home sales were still surging as our fiscal year ended, new homes sales fell after three months of gain.
After a decline in first quarter gross domestic product (“GDP”) of 5.5% annualized, the contraction for the second quarter was just 0.7% annualized and after four straight falls, the first estimate of third quarter GDP growth was 3.5%.
A “Cash-for-Clunkers” program under which the U.S. government offered to subsidize the trade in of old vehicles for newer, more efficient models was vigorously taken up. Retail sales and industrial production were boosted. Auto companies re-opened production lines.
But so much of the outlook depended on jobs. The September employment report showed payroll cuts at little more than one third of the January level. But cuts spiked up again in the October report and the unemployment rate rose to a 26-year high 9.8% as of September 30, 2009. The average work week matched the lowest since records began in 1964. Wage growth remained insipid. Increasingly commentators asked what kind of real recovery could take place under these conditions and as the various government support programs expired.
In fixed income markets, the Barclays Capital U.S. Aggregate Bond Index(3) of investment grade bonds returned 5.61% for the second half of the fiscal year and 13.62% for the entire fiscal year. But within this figure the Barclays Capital U.S. Treasury Index(4) only gained 0.81% in the second half of the fiscal year and 6.33% for the entire fiscal year, as greater risk appetite was reinforced by concerns about massive government borrowing. Corporate investment grade bonds performed much better and high yield bonds, represented by the Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index(5), did best of all: up 27.72% in the second half of the fiscal year and 48.66% for the entire fiscal year.
U.S. equities, represented by the S&P 500® Composite Stock Price (“S&P 500®”) Index(6) including dividends, returned 20.0% in the second half of the fiscal year and 9.8% for the entire fiscal year, led by financials and technology. Profits for S&P 500® companies suffered their eighth straight quarter of decline in the second quarter and by the end of September the price to earnings (“P/E”) ratio of the S&P 500® Index, based on operating earnings in the trailing four quarters, was the highest since the first half of 2002. Volatility picked up in October and when on October 30th it was announced that consumer spending had fallen with
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Market Perspective: Year Ended October 31, 2009
incomes flat, the market dropped more than 2%, leading to a monthly fall for the first month in eight.
In international markets, referring to MSCI indices in local currencies with net reinvested dividends, the MSCI Japan® Index(7) rose 7.2% in the second half of the fiscal year and 4.7% for the entire fiscal year, but weakened in the last two months. A rise in GDP of 2.3% annualized was due to net exports and government stimulus. Domestic demand was still in the doldrums and deflation had again taken hold at record levels. The MSCI Europe ex UK® Index(8) advanced 19.2% in the second half of the fiscal year and 11.8% for the entire fiscal year. After a drop in GDP of 2.5% in the first quarter, second quarter GDP barely fell and actually rose in France and Germany. Prices continued to fall slightly, and unemployment edged up to 9.6%. Banks were still not lending however: M3** growth reached a record low in September. Yet confidence measures, from investor to business to consumer, continued to advance. The MSCI UK® Index(9) rose 21.3% in the second half of the fiscal year and 20.9% for the entire fiscal year. GDP fell for the sixth consecutive quarter and stood 5.9% below the level one year earlier. Yet house prices were by all accounts edging back up again. Purchasing managers’ indices were in or near expansion territory. And in September, consumer confidence rose by the most since 1995.
* On November 5, 2009, Congress approved extending the deadline to April 30, 2010.
** M3 refers to the broadest measure of the available money supply.
(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 S&P/Case-Shiller National U.S. Home Price Index tracks the value of single-family housing within the United States. The index is a composite of single family home price indices for the nine U.S. Census divisions and is calculated quarterly.
(3) The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities.
(4) The Barclays Capital U.S. Treasury Index is an unmanaged index that includes public obligations of the U.S. Treasury. Treasury bills, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS and STRIPS, are excluded.
(5) The Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index is an unmanaged index that measures the performance of fixed-income securities.
(6) The S&P 500® Index is an unmanaged index that measures the performance of securities of approximately 500 large-capitalization companies whose securities are traded on major U.S. stock markets.
(7) The MSCI Japan® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan.
(8) 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.
(9) The MSCI UK® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK.
Parentheses denote a negative number.
All indices are unmanaged and investors cannot invest directly in an index. Past performance does not guarantee future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. The Funds’ performance is subject to change since the period’s end and may be lower or higher than the performance data shown. Please call (800) 992-0180 or log on to www.ingfunds.com to obtain performance data current to the most recent month end.
Market Perspective reflects the views of ING’s Chief Investment Risk Officer only through the end of the period, and is subject to change based on market and other conditions.
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ING Global Equity Dividend Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164351b.gif)
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 year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 10.41%, including a return of capital of $0.02 per share, compared to the MSCI World Indexsm(1), which returned 18.42% for the same period.
Portfolio Specifics: Over the year, the recovery scenario, supported by substantial stimulus policies around the world, pushed the markets to higher levels. The problems in the financials sector started to ease as several steps were taken at different levels to help financials sector companies stabilize their balance sheets and support their liquidity needs. With the huge quantitative easing undertaken by many central banks, the economy jumped from recession to an expansionary mode during this period.
The Fund’s focus on dividends hurt performance during the year, as the market strongly favored troubled or distressed companies, which mostly no longer paid dividends. Security selection and sector allocation both detracted from results. The most significant detractors were security selection and underweights in the financial and information technology sectors. The greatest contributions to results came from security selection in the consumer discretionary and consumer staples sectors, though these effects were not enough to offset the detractors.
The losses among financials came from the underweight but also from our exposure. We were exposed to dividend paying financial companies that were less distressed than their peers. These stocks underperformed their sector as troubled companies had a brighter rally in light of the rescue plans and the recovery.
Current Strategy and Outlook: Our outlook for the Fund remains positive. We believe that, after the rally of the last several months, investors should pay more attention to the dividend theme in a market caught between a rock and a hard place. In our view, a potentially low-return environment would favor the resurgence of dividend investing. We believe the current stage in the style cycle is more favorable for dividend investing, as are the recovery and boom phases when earnings growth translates into dividend growth. We continue to look for individual stocks to exploit what we believe are any temporary undervaluations that may take place.
(1) | This MSCI World Indexsm is an unmanaged index that measures the performance of over 1,400 securities listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Kraft Foods, Inc. | 1.6 | % | ||
AT&T, Inc. | 1.6 | % | ||
Chevron Corp. | 1.6 | % | ||
Coca-Cola Co. | 1.5 | % | ||
Pfizer, Inc. | 1.5 | % | ||
Royal Dutch Shell PLC | 1.5 | % | ||
Total SA | 1.5 | % | ||
Nintendo Co., Ltd. | 1.5 | % | ||
Vivendi | 1.5 | % | ||
ENI S.p.A. | 1.4 | % |
Portfolio holdings are subject to change daily.
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ING Global Equity Dividend Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643573.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||||||||||||
of Class A | of Class B | of Class C | of Class I | of Class O | of Class W | |||||||||||||||||||||||||||
1 Year | 5 Year | September 17, 2003 | October 24, 2003 | October 29, 2003 | August 1, 2007 | November 15, 2006 | February 12, 2008 | |||||||||||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||||||||||||||
Class A(1) | 4.00 | % | 0.10 | % | 4.28 | % | — | — | — | — | — | |||||||||||||||||||||
Class B(2) | 4.60 | % | 0.23 | % | — | 4.10 | % | — | — | — | — | |||||||||||||||||||||
Class C(3) | 8.63 | % | 0.53 | % | — | — | 3.89 | % | — | — | ||||||||||||||||||||||
Class I | 10.92 | % | — | — | — | — | (14.22 | )% | — | — | ||||||||||||||||||||||
Class O | 10.41 | % | — | — | — | — | — | (9.17 | )% | — | ||||||||||||||||||||||
Class W | 10.92 | % | — | — | — | — | — | — | (14.98 | )% | ||||||||||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||||||||||||||
Class A | 10.41 | % | 1.30 | % | 5.30 | % | — | — | — | — | — | |||||||||||||||||||||
Class B | 9.60 | % | 0.53 | % | — | 4.10 | % | — | — | — | — | |||||||||||||||||||||
Class C | 9.63 | % | 0.53 | % | — | 3.89 | % | — | — | — | ||||||||||||||||||||||
Class I | 10.92 | % | — | — | — | — | (14.22 | )% | — | — | ||||||||||||||||||||||
Class O | 10.41 | % | — | — | — | — | (9.17 | )% | — | |||||||||||||||||||||||
Class W | 10.92 | % | — | — | — | — | — | — | (14.98 | )% | ||||||||||||||||||||||
MSCI World IndexSM(4) | 18.42 | % | 2.64 | % | 5.27 | %(5) | 4.34 | %(6) | 4.34 | %(6) | (12.37 | )% | (6.06 | )%(7) | (12.76 | )%(8) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Global Equity Dividend Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund Shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The MSCI World Indexsm is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
(5) | Since inception performance for the index is shown from October 1, 2003. |
(6) | Since inception performance for the index is shown from November 1, 2003. |
(7) | Since inception performance for the index is shown from November 1, 2006. |
(8) | Since inception performance for the index is shown from February 1, 2008. |
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ING Global Natural Resources Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164352b.gif)
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 David Powers and Christopher Corapi*, Portfolio Managers, both of ING Investment Management Co. — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 24.38% compared to the Standard & Poor’s 500® Composite Stock Price Index(1) (“S&P 500® Index”) and the Standard & Poor’s (“S&P”) North American Natural Resources Sector Index(2) which returned 9.80% and 22.75%, respectively, for the same period.
Portfolio Specifics: At the beginning of the reporting period, natural resources companies were declining along with the rest of the market due to concerns over falling commodity prices and overall global demand destruction. Since reaching a low on March 6, the equity market has significantly recovered, as policy moves from the Federal Reserve and U.S. Treasury renewed hopes of a global economic recovery. Better than expected earnings estimates and positive economic data further fueled upward momentum. This led to an even stronger recovery in natural resources equities, due to their cyclical nature and a rebound in commodity prices. Within energy, stocks with high sensitivity to commodity prices — such as drillers, coal, and equipment and storage companies — exhibited the strongest results. Within materials, precious metals, gold and diversified metals and mining were the best performing sub-sectors.
The Fund’s outperformance was due largely to its holdings within the materials sector. In particular, our holdings within gold, diversified metals and mining and aluminum aided results. Within diversified metals and mining, Rio Tinto PLC ADR and BHP Billiton Ltd. ADR were among the top performers. We continue to have an overweight position in the diversified metals and mining stocks as we believe they offer significant leverage to a recovering global economy. Within energy, our holdings within the oil and gas storage and transportation sub-sector helped relative returns. We also benefited from underweighting or not having exposure to some of the lackluster performers during this period including ConocoPhillips and Weatherford International, Inc.
Our small and mid cap positions within the exploration and production industry, including W&T Offshore, Inc. (“W&T Offshore”), Stone Energy Corp. (“Stone Energy”) and Cimarex Energy Co. (“Cimarex”), detracted from results during this period. These companies were plagued by rising costs and larger than expected reserve write-downs due to falling oil prices at the beginning of the year. As a result of deteriorating fundamentals, we decided to exit the Fund’s positions in W&T Offshore and Stone Energy. We continue to like Cimarex, for what we believe to be the upside potential of its reserve base due to a recent exploration of a Woodford Shale position. Finally, our underexposure to Teck Resources Ltd., a mid sized, lower quality diversified metal and mining company, also detracted from relative results during the period.
Current Strategy and Outlook: We continue to believe the long-term case for commodities remains intact; and believe it will be driven by industrialization and urbanization trends in emerging economies, and the need for infrastructure spending globally. We believe that, as the global economy gradually improves and growth resumes, demand for natural resources will continue to rebound. We expect finite supplies of resources to put further upward pressure on commodity prices, leading to solid return potential for this asset class going forward.
* | Effective February 27, 2009, Mr. Corapi replaced James Vail as a portfolio manager to the Fund. |
(1) | The S&P 500® Index is an unmanaged index that measures the performance of securities of approximately 500 of the largest companies in the United States. |
(2) | The S&P North American Natural Resources Sector Index (formerly, the S&P GSSI Natural Resources Index) is an unmanaged index and a market-capitalization weighted index of stocks designed to measure the performance of companies in the natural resources sector, which includes energy, precious metals, timber and other sub-sectors. Each sector index is a modified-capitalization weighted index, the constituents of which are selected according to objective screening criteria. The weight of a particular stock in each Sector Index is capped at a cap level determined on a sector-by-sector basis. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
ExxonMobil Corp. | 7.2 | % | ||
Chevron Corp. | 6.4 | % | ||
ConocoPhillips | 6.2 | % | ||
Schlumberger, Ltd. | 4.7 | % | ||
EnCana Corp. | 4.4 | % | ||
Apache Corp. | 4.3 | % | ||
Canadian Natural Resources, Ltd. | 3.3 | % | ||
Devon Energy Corp. | 3.1 | % | ||
Barrick Gold Corp. | 3.0 | % | ||
National Oilwell Varco, Inc. | 2.9 | % |
Portfolio holdings are subject to change daily.
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ING Global Natural Resources Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643574.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||
of Class I | of Class W | |||||||||||||||||||
1 Year | 5 Year | 10 Year | August 1, 2007 | February 12, 2008 | ||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||
Class A(1) | 17.25 | % | 8.56 | % | 12.41 | % | — | — | ||||||||||||
Class I | 25.10 | % | — | — | (6.01 | )% | — | |||||||||||||
Class W | 24.84 | % | — | — | — | (11.18 | )% | |||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||
Class A | 24.38 | % | 9.84 | % | 13.07 | % | — | — | ||||||||||||
Class I | 25.10 | % | — | — | (6.01 | )% | — | |||||||||||||
Class W | 24.84 | % | — | — | — | (11.18 | )% | |||||||||||||
S&P 500® Index(2) | 9.80 | % | 0.33 | % | (0.95 | )% | (11.97 | )% | (12.95 | )%(4) | ||||||||||
S&P North American Natural Resources Sector Index(3) | 22.75 | % | 10.64 | % | 8.85 | % | (7.82 | )% | (11.01 | )%(4) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Global Natural Resources Fund against the indices indicated. An index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in an index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund Holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | 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. |
(3) | The S&P North American Natural Resources Sector Index (formerly, the S&P GSSI Natural Resources Index) is an unmanaged index and a market-capitalization weighted index of stocks designed to measure the performance of companies in the natural resources sector, which includes energy, precious metals, timber and other sub-sectors. Each sector index is a modified-capitalization weighted index, the constituents of which are selected according to objective screening criteria. The weight of a particular stock in each Sector Index is capped at a cap level determined on a sector-by-sector basis. |
(4) | Since inception performance for index is shown from February 1, 2008. |
7
Table of Contents
ING Global Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164353b.gif)
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 appreciation and current income. The Fund is managed by T. Ritson Ferguson, Chief Investment Officer and Portfolio Manager, Steven D. Burton, Managing Director and Portfolio Manager and Joseph P. Smith, Managing Director and Portfolio Manager, of ING Clarion Real Estate Securities L.P. — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 17.37%, including a return of capital of $0.09 per share, compared to the Standard & Poor’s (“S&P”) Developed Property Index(1), which returned 22.11% for the same period.
Portfolio Specifics: The past twelve months has been a period of positive total returns for global real estate stocks, as improving capital market conditions and improving economic conditions have benefited investors. Governments and Central Banks responded quickly and aggressively to credit issues in the fourth quarter of 2008 and first quarter of 2009, providing access to significant capital support for financial institutions as well as interest rate cuts. The resulting impact is becoming evident via recent economic reports, including second quarter gross domestic product (“GDP”) data that surpassed expectations, which has led to positive revisions to future growth estimates and an acknowledgment that the recession, which impacted many of the world’s developed economies, may have ended. The Asia-Pacific property stocks fared the best over the past twelve months, followed by the European region and Americas.
Within the Asia-Pacific region, performance was driven by the strength of the Singapore and Hong Kong markets. Economic growth in Asia has been robust. China’s economic growth accelerated to an 8.9% rate year-on-year versus 6.1% and 7.9% during the first two quarters of 2009, respectively. Singapore revised its GDP growth forecast range for 2009 to −2.0% to −2.5% from the previous forecast range of −4% to −6%. The notable laggard in the region has been Japan, where property markets were up by a modest 9% during the past twelve months.
Within the European region, the return differential between countries has been quite substantial, ranging from a positive return posted by Austria, the best-performing market during the period, to a negative return posted by Spain, the poorest-performing market during the period. On whole, the countries which fared the best in the current environment were the countries in the Benelux region (the Benelux region is a union in Western Europe that comprises three neighboring countries — Belgium, the Netherlands, and Luxembourg) as well as Germany and France; the countries which fared the worst were in Southern, Central and Eastern Europe as well as the U.K.
Within the North American region, U.S. property stocks were flat during the period while Canadian property companies posted an increase.
While absolute returns were strong during the period, the Fund lagged its benchmark as the result of both stock selection and asset allocation decisions. Stock selection, which accounted for approximately half of the period’s underperformance, was mixed as positive stock selection in the Americas and the U.K. was more than offset by sub-par stock selection in the Asia-Pacific region, primarily in Japan, Australia and Singapore. Country allocation decisions hurt returns as an average underweight to the outperforming Asia-Pacific and European regions, along with an overweight to the underperforming Americas all detracted from relative performance.
Current Strategy and Outlook: The Fund continues to maintain a bias toward, what we believe are, high-quality companies. We remain overweight sectors and geographies offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies that we believe offer more transparency, strong balance sheets and good, experienced management teams.
We believe global property companies are generally fairly valued. We estimate the average global property company is trading in-line with our internal estimate of inherent private real estate market value. In our opinion, the rationale for a global listed property strategy remains very much intact, including diversification via low long-term correlation to broad equities and bonds, attractive current yield, reasonable valuations and the continued, gradual spread of the real estate investment trust (“REIT”) structure globally. In our view, through an average 4% to 5% dividend yield, plus fundamentals which we believe are bottoming and access to the capital markets, global property stocks should be well-positioned to deliver modestly attractive total returns over the next several years.
(1) The S&P Developed Property Index (formerly, the S&P/Citigroup BMI World Property Index) is an unmanaged float-adjusted index which defines and measure the investable universe of publicly traded property companies domiciled in developed countries that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings*
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Simon Property Group, Inc. | 5.2 | % | ||
Sun Hung Kai Properties, Ltd. | 4.9 | % | ||
Unibail | 4.3 | % | ||
Westfield Group | 4.2 | % | ||
Cheung Kong Holdings, Ltd. | 3.8 | % | ||
Mitsui Fudosan Co., Ltd. | 3.1 | % | ||
Land Securities Group PLC | 2.6 | % | ||
Vornado Realty Trust | 2.5 | % | ||
Mitsubishi Estate Co., Ltd. | 2.0 | % | ||
Macerich Co. | 1.9 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. |
Portfolio holdings are subject to change daily.
8
Table of Contents
ING Global Real Estate Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643575.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||||||||||||
of Class A | of Class B | of Class C | of Class I | of Class O | of Class W | |||||||||||||||||||||||||||
1 Year | 5 Year | November 5, 2001 | March 15, 2002 | January 8, 2002 | June 3, 2005 | November 15, 2006 | February 12, 2008 | |||||||||||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||||||||||||||
Class A(1) | 10.59 | % | 3.48 | % | 10.36 | % | — | — | — | — | — | |||||||||||||||||||||
Class B(2) | 11.39 | % | 3.61 | % | — | 9.29 | % | — | — | — | — | |||||||||||||||||||||
Class C(3) | 15.40 | % | 3.94 | % | — | — | 9.53 | % | — | — | — | |||||||||||||||||||||
Class I | 17.76 | % | — | — | — | — | 2.42 | % | — | — | ||||||||||||||||||||||
Class O | 17.38 | % | — | — | — | — | — | (9.97 | )% | — | ||||||||||||||||||||||
Class W | 17.78 | % | — | — | — | — | — | — | (13.28 | )% | ||||||||||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||||||||||||||
Class A | 17.37 | % | 4.71 | % | 11.18 | % | — | — | — | — | — | |||||||||||||||||||||
Class B | 16.39 | % | 3.92 | % | — | 9.29 | % | — | — | — | — | |||||||||||||||||||||
Class C | 16.40 | % | 3.94 | % | — | — | 9.53 | % | — | — | — | |||||||||||||||||||||
Class I | 17.76 | % | — | — | — | — | 2.42 | % | — | — | ||||||||||||||||||||||
Class O | 17.38 | % | — | — | — | — | — | (9.97 | )% | — | ||||||||||||||||||||||
Class W | 17.78 | % | — | — | — | — | — | — | (13.28 | )% | ||||||||||||||||||||||
S&P Developed Property Index(4) | 22.11 | % | 1.99 | % | 8.94 | %(5) | 8.60 | %(6) | 8.40 | %(7) | (0.30 | )%(8) | (12.68 | )%(9) | (18.38 | )%(10) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Global Real Estate Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The S&P Developed Property Index (formerly, the S&P/Citigroup BMI World Property Index) is an unmanaged float-adjusted index which defines and measure the investable universe of publicly traded property companies domiciled in developed countries that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. |
(5) | Since inception performance for index is shown from November 1, 2001. |
(6) | Since inception performance for index is shown from March 1, 2002. |
(7) | Since inception performance for index is shown from January 1, 2002. |
(8) | Since inception performance for index is shown from June 1, 2005. |
(9) | Since inception performance for index is shown from November 1, 2006. |
(10) | Since inception performance for index is shown from February 1, 2008. |
9
Table of Contents
ING Global Value Choice Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164354b.gif)
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 year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 55.88% compared to the MSCI All Country World Indexsm(1) (“MSCI ACWI”) which returned 22.65% for the same period.
Portfolio Specifics: The Fund returned positive absolute returns during the twelve month period ended October 31, 2009, and outperformed its benchmark, the MSCI All Country World Indexsm.
Investors continued to gain confidence that the worst of the financial crisis had passed and consequently, bid up shares of financials companies, especially towards the end of the reporting period. The financial sector was the fourth-best performing sector in the benchmark for the annual period, but was the best contributor in third quarter of 2009. The Fund’s financial holdings contributed to performance, although it maintained an underweight position in the financials sector. Furthermore, our positions in consumer discretionary companies hurt relative returns, while our positions in the materials and energy sectors added most to relative performance, even though the materials sector was also the benchmark’s top performing sector for the period.
In the consumer staples sector, Marine Harvest was the Fund’s largest contributor to performance during the period. Marine Harvest is a fully integrated, Norwegian-based salmon fish farming company with a 25 percent global market share and operations in twenty countries. Strong share performance was due in part to tight salmon supply and robust demand, and has led to strong European salmon prices.
The Fund maintained its overweight position in the materials sector. Gold prices rose above the $1,000-an-ounce mark in the third quarter of 2009 amid investor concerns about inflation and the weakness of the dollar. Most gold companies in the Fund experienced share price appreciation as a result, and several positions were among the top contributors to performance during the reporting period.
The Fund’s worst detractor from performance during the period was consumer discretionary sector holding Sekisui House Ltd. The company undertakes design, execution, construction contracting and supervision of buildings or structures and manufacture, sale and purchase of construction materials. The company revised down its full year operating profit estimates in the third quarter due to weaker than expected housing statistics. In addition, worsening deflationary trends in Japan are causing concerns that the company may have to write down its inventory of property for redevelopment. There are also fears that the new government will introduce policies which could hurt future housing demand.
Current Strategy and Outlook: We believe that the markets will continue to be volatile as a recovery which is slower than past economic recoveries may no longer be greeted with enthusiasm. In this environment, investors are advised to protect their portfolio from the threat of a loss of purchasing power (driven by inflation). We continue to believe that all investors should maintain a meaningful allocation in hard assets, gold and global equities especially in light of low nominal returns (and negative real returns) on cash equivalents and sovereign bonds. We remain attracted to reserve-rich resource companies that are trading at below what we perceive to be their intrinsic value and select healthcare companies have recently become very attractive, particularly in the U.S. as the healthcare debate rages. We expect common stocks to be volatile and unsettling at times but should reward patient, long-term investors.
(1) | The MSCI ACWIsm is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings*
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Nippon Telegraph & Telephone Corp. | 3.6 | % | ||
Newmont Mining Corp. | 3.3 | % | ||
Barrick Gold Corp. | 3.3 | % | ||
Lihir Gold, Ltd. | 3.2 | % | ||
Sanofi-Aventis ADR | 2.3 | % | ||
Gabriel Resources, Ltd. | 2.3 | % | ||
Tyson Foods, Inc. | 2.2 | % | ||
Sekisui House, Ltd. | 2.0 | % | ||
Pfizer, Inc. | 1.9 | % | ||
Kao Corp. | 1.9 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I and securities lending collateral. |
Portfolio holdings are subject to change daily.
10
Table of Contents
ING Global Value Choice Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643576.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||
of Class I | of Class W | |||||||||||||||||||
1 Year | 5 Year | 10 Year | September 6, 2006 | June 1, 2009 | ||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||
Class A(1) | 46.89 | % | 9.46 | % | 1.33 | % | — | — | ||||||||||||
Class B(2) | 49.70 | % | 9.71 | % | 1.23 | % | — | — | ||||||||||||
Class C(3) | 53.73 | % | 9.99 | % | 1.25 | % | — | — | ||||||||||||
Class I | 56.38 | % | — | — | 7.47 | % | — | |||||||||||||
Class Q | 56.02 | % | 10.98 | % | 2.17 | % | — | — | ||||||||||||
Class W | — | — | — | — | 9.16 | % | ||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||
Class A | 55.88 | % | 10.75 | % | 1.93 | % | — | — | ||||||||||||
Class B | 54.70 | % | 9.99 | % | 1.23 | % | — | — | ||||||||||||
Class C | 54.73 | % | 9.99 | % | 1.25 | % | — | — | ||||||||||||
Class I | 56.38 | % | — | — | 7.47 | % | — | |||||||||||||
Class Q | 56.02 | % | 10.98 | % | 2.17 | % | — | — | ||||||||||||
Class W | — | — | — | — | 9.16 | % | ||||||||||||||
MSCI ACWISM*(4) | 22.65 | % | 3.73 | % | 1.39 | % | (3.20 | )%(5) | 15.39 | % |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Global Value Choice Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in an index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
* | Prior to October 31, 2002, the index did not include the deduction of withholding taxes. |
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The MSCI ACWISM is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. |
(5) | Since inception performance for the index is shown from September 1, 2006. |
Prior to April 24, 2006, the Fund was advised by a different sub-adviser.
11
Table of Contents
ING Asia-Pacific Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164355b.gif)
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: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 29.71% compared to the Standard & Poor’s (“S&P”) Asia-Pacific Property Index(1) which returned 41.14% for the same period.
Portfolio Specifics: The past twelve months has been a period of positive total returns for Asia-Pacific real estate stocks, as improving capital market conditions and improving economic conditions have benefited investors. Governments and Central Banks responded quickly and aggressively to credit issues in the fourth quarter of 2008 and first quarter of 2009, providing access to significant capital support for financial institutions as well as interest rate cuts. The resulting impact is becoming evident via recent economic reports, including second quarter gross domestic product (“GDP”) data that surpassed expectations, which has led to positive revisions to future growth estimates and an acknowledgment that the recession, which impacted many of the world’s developed economies, may have ended.
Within the region, performance was driven by the strength of the Singapore and Hong Kong markets. Economic growth in Asia has been robust. China’s economic growth accelerated to an 8.9% rate year-on-year versus 6.1% and 7.9% during the first two quarters of 2009, respectively. Singapore revised its GDP growth forecast range for 2009 to −2.0% to −2.5% from the previous forecast range of −4% to −6%. The notable laggard in the region has been Japan, where property markets were up modestly during the past twelve months.
While absolute returns were strong during the period, the Fund lagged its benchmark primarily as the result of stock selection. Although stock selection decisions in Hong Kong were positive, the benefit was more than offset by the underperformance of Fund holdings in Japan, Australia and Singapore. Country allocation decisions hurt returns as an underweight to the outperforming Singapore market constituted the majority of the relative shortfall during the period, overshadowing the positive contributions of an overweight to the outperforming Hong Kong market as well as an underweight to the underperforming Japanese market.
Current Strategy and Outlook: The Fund continues to maintain a bias toward, what we believe are, high-quality companies. We remain overweight sectors and geographies offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies that we believe offer more transparency, strong balance sheets and good, experienced management teams.
We believe Asia-Pacific property companies generally remain fairly valued and many of the companies within the region trade at discounts to our internal estimate of inherent private real estate market value.
In our opinion the rationale for an Asia-Pacific listed property strategy remains very much intact, including the opportunity for diversification in the region, access to solid long-term underlying property fundamentals and the continued expansion of the real estate investment trust (“REIT”) structure throughout the region.
(1) | The S&P Asia-Pacific Property Index is an unmanaged float-adjusted index which defines and measures the investable universe of publicly traded property companies domiciled in developed countries in the Asia Pacific region, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. It includes the reinvestment of dividends but is gross of withholding taxes on dividends and does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings*
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Westfield Group | 8.5 | % | ||
Sun Hung Kai Properties, Ltd. | 8.2 | % | ||
Cheung Kong Holdings, Ltd. | 7.0 | % | ||
Mitsui Fudosan Co., Ltd. | 6.5 | % | ||
Mitsubishi Estate Co., Ltd. | 6.2 | % | ||
Sumitomo Realty & Development Co., Ltd. | 3.0 | % | ||
CapitaLand, Ltd. | 2.8 | % | ||
Stockland | 2.8 | % | ||
Hongkong Land Holdings, Ltd. | 2.6 | % | ||
Mirvac Group | 2.2 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. |
Portfolio holdings are subject to change daily.
12
Table of Contents
ING Asia-Pacific Real Estate Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643577.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||
Since Inception | ||||||||
of Class A, B, C, and I | ||||||||
1 Year | November 1, 2007 | |||||||
Including Sales Charge: | ||||||||
Class A(1) | 22.13 | % | (25.23 | )% | ||||
Class B(2) | 23.60 | % | (25.12 | )% | ||||
Class C(3) | 27.54 | % | (23.62 | )% | ||||
Class I | 29.97 | % | (22.89 | )% | ||||
Excluding Sales Charge: | ||||||||
Class A | 29.71 | % | (22.98 | )% | ||||
Class B | 28.60 | % | (23.62 | )% | ||||
Class C | 28.54 | % | (23.62 | )% | ||||
Class I | 29.97 | % | (22.89 | )% | ||||
S&P Asia-Pacific Property Index(4) | 41.14 | % | (22.24 | )% |
Based on a $10,000 initial investment, the table and graph above illustrate the total return of ING Asia-Pacific Real Estate Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund Shares.
The performance shown may include the effect of the waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 4%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the since inception return. |
(4) | The S&P Asia-Pacific Property Index is an unmanaged float-adjusted index which defines and measures the investable universe of publicly traded property companies domiciled in developed countries in the Asia Pacific region, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. |
13
Table of Contents
ING Emerging Countries Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164356b.gif)
Portfolio holdings are subject to change daily.
ING Emerging Countries Fund (the “Fund”) seeks maximum long-term capital appreciation. The Fund is managed by Jan-Wim Derks, Michael Bootsma and Roberto Lampl, Portfolio Managers of ING Investment Management Advisors, B.V. (“IIMA”) — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 52.02%, including a return of capital of $0.02 per share, compared to the MSCI Emerging Markets Indexsm(1) (“MSCI EM Indexsm”), which returned 64.13% for the same period.
Portfolio Specifics: The start of the reporting period almost coincided with the 2008 trough of the benchmark. As the fiscal year began, the markets already had corrected an unprecedented 60% in response to deteriorating global economic and financial conditions. An extremely pessimistic outlook regarding the global economy, and the troubling state of the financial sector in the United States and Europe, kept investors paralyzed. What followed was a four-month period of considerable volatility, which culminated in another market bottom in early March 2009.
At that point, the markets staged an unheard-of rally in response to globally coordinated stimulus measures, loose monetary policies and strong growth in China. The MSCI EM Indexsm doubled over the March-October 2009 period, and recovered the majority of last year’s losses. Emerging markets outperformed developed markets of the U.S., Europe and Japan by wide margins.
The Fund lagged the benchmark during the reporting period. Particularly in March, when the market rally started, the Fund was too defensively positioned in sectors with strong earnings visibility and steady cash flows, such as consumer staples, telecommunications and healthcare.
Investors became much more opportunity driven and started pushing up cyclical sectors like consumer discretionary, materials and information technology, sectors in which the Fund held underweight positions. These underweights, together with a significant cash position, were the main reasons why the Fund underperformed. However, the Fund reversed course quickly to move into more cyclical sectors; it also added exposure to more export-oriented countries in Asia that were expected to benefit in the early phases of an economic recovery. Stock selection also detracted from results for the reporting period.
In recent months, the Fund has focused on markets that tend to benefit from abundant global liquidity and an increase in risk appetite, for example, Hungary, Poland, Russia and Turkey.
Current Strategy and Outlook: From a country perspective, the Fund has a slightly offensive positioning, with overweights in markets that tend to benefit from a high level of risk appetite (Hungary, Poland, Russia and Turkey) and strong commodity prices (Brazil, Indonesia and India). The largest overweight country is China. Outstanding economic growth coupled with good earnings perspectives and a stable currency offer attractive upside potential. At a sector level, the biggest positive active positions are in consumer discretionary, energy and financials. The Fund is at its maximum allowed underweight of telecom services and utilities, two defensive sectors that we believe will stay behind in the current market environment.
In recent months, we have increased the Fund’s number of mid cap stocks, selecting companies that we believe will show above-average earnings growth compared to larger capitalization companies.
In our opinion, the emerging markets still have potential to outperform the developed markets. Four factors underpin our positive view. First, we believe the financial sector in emerging markets is much healthier than in developed markets; we believe this will help economic growth recover faster. Second, strong growth in China and India will keep upward pressure on commodity prices. This is supportive for emerging markets, which on balance are net commodity exporters. Third, global liquidity is abundant and interest rates are low, which is beneficial to higher yielding, risky asset classes like emerging markets. Fourth, on a forward earnings basis, emerging markets are still cheaper than developed markets.
(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 October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Samsung Electronics Co., Ltd. | 4.1 | % | ||
Petroleo Brasileiro SA | 3.6 | % | ||
CIA Vale do Rio Doce | 2.9 | % | ||
Taiwan Semiconductor Manufacturing Co., Ltd. | 2.8 | % | ||
Industrial and Commercial Bank of China, Ltd. | 2.4 | % | ||
OAO Rosneft Oil Co. GDR | 2.4 | % | ||
Turkiye Garanti Bankasi A/S | 2.2 | % | ||
CNOOC, Ltd. | 2.2 | % | ||
China Shenhua Energy Co., Ltd. | 2.1 | % | ||
iShares MSCI South Korea Index Fund | 2.1 | % |
Portfolio holdings are subject to change daily.
14
Table of Contents
ING Emerging Countries Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643579.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||
Since Inception | Since Inception | |||||||||||||||||||
of Class I | of Class W | |||||||||||||||||||
1 Year | 5 Year | 10 Year | December 21, 2005 | February 12, 2008 | ||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||
Class A(1) | 43.26 | % | 4.75 | % | 4.12 | % | — | — | ||||||||||||
Class B(2) | 45.68 | % | 4.86 | % | 4.04 | % | — | — | ||||||||||||
Class C(3) | 49.69 | % | 5.18 | % | 3.91 | % | — | — | ||||||||||||
Class I | 52.74 | % | — | — | 0.68 | % | ||||||||||||||
Class Q | 52.23 | % | 6.15 | % | 4.88 | % | — | — | ||||||||||||
Class W | 52.70 | % | — | — | — | (17.99 | )% | |||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||
Class A | 52.02 | % | 5.99 | % | 4.74 | % | — | — | ||||||||||||
Class B | 50.68 | % | 5.19 | % | 4.04 | % | — | — | ||||||||||||
Class C | 50.69 | % | 5.18 | % | 3.91 | % | — | — | ||||||||||||
Class I | 52.74 | % | — | — | 0.68 | % | — | |||||||||||||
Class Q | 52.23 | % | 6.15 | % | 4.88 | % | — | — | ||||||||||||
Class W | 52.70 | % | — | — | — | (17.99 | )% | |||||||||||||
MSCI EM IndexSM*(4) | 64.13 | % | 16.78 | % | 11.49 | % | 9.49 | %(5) | (7.17 | )%(6) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Emerging Countries Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
* | Prior to October 31, 2001, the MSCI EM IndexSM did not include the deduction of withholding taxes. |
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | 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. |
(5) | Since inception performance for index is shown from January 1, 2006. |
(6) | Since inception performance for index is shown from February 1, 2008. |
Prior to March 1, 2005, the Fund was advised by a different sub-adviser.
15
Table of Contents
ING European Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp164357b.gif)
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: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 36.84% compared to the Standard & Poor’s Europe Property Index(1) (“S&P Europe Property Index”), which returned 33.46% for the same period.
Portfolio Specifics: The past twelve months has been a period of positive total returns for European real estate stocks, as improving capital market conditions and improving economic conditions have benefited investors. Governments and Central Banks responded quickly and aggressively to credit issues in the fourth quarter of 2008 and first quarter of 2009, providing access to significant capital support for financial institutions as well as interest rate cuts. The resulting impact is becoming evident via recent economic reports, including second quarter gross domestic product (“GDP”) data that surpassed expectations, which has led to positive revisions to future growth estimates and an acknowledgment that the recession, which impacted many of the world’s developed economies, may have ended.
Within the region, the return differential between countries has been quite substantial, ranging from a positive return posted by Austria, the best-performing market during the period, to a negative return posted by Spain, the poorest-performing market during the period. On whole, the countries which fared the best in the current environment were the countries in the Benelux region (the Benelux region is a union in Western Europe that comprises three neighboring countries — Belgium, the Netherlands, and Luxembourg) as well as Germany and France; the countries which fared the worst were in Southern, Central and Eastern Europe as well as the U.K.
In addition to strong absolute returns, the Fund outperformed the benchmark for the period by more than 300 basis points as the result of superior stock selection and most country allocation decisions. Stock selection contributed the majority of relative outperformance and was especially strong in the U.K., led by overweight positions to Safestore and Derwent London. Stock selection was also positive in the Netherlands, Switzerland, Germany and France during the period. Selective country allocation decisions added value through overweights to outperforming property markets in France and the Netherlands, along with underweights to underperforming property markets in Spain, Italy and Greece. An underweight to the outperforming Austrian market detracted from relative performance during the period.
Current Strategy and Outlook: The Fund continues to maintain a bias toward, what we believe are, high-quality companies. We remain overweight sectors and geographies offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies that we believe offer more transparency, strong balance sheets and good, experienced management teams.
We believe European property companies are generally fairly valued. We estimate that U.K. property companies now trade at a modest premium to our internal estimate of inherent private real estate market value, which we believe is warranted as the U.K. listed property companies own higher-quality properties, on average. On the Continent, we estimate that companies are trading at a slight discount to inherent real estate value.
In our opinion, the investment rationale for a European listed property strategy remains very much intact including diversification via low correlation to broad equities and bonds, attractive current yield, attractive valuations and the gradual spread of the real estate investment trust (“REIT”) structure to an increased number of countries.
(1) | The S&P Europe Property Index is an unmanaged float-adjusted index which defines and measures the investable universe of publicly traded property companies domiciled in developed European countries, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. It includes the reinvestment of dividends but is gross of withholding taxes on dividends and does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Unibail | 19.2 | % | ||
Land Securities Group PLC | 9.2 | % | ||
Corio NV | 5.5 | % | ||
British Land Co. PLC | 4.5 | % | ||
Hammerson PLC | 4.4 | % | ||
Swiss Prime Site AG | 3.6 | % | ||
Castellum AB | 3.1 | % | ||
Immoeast Immobilien Anlagen AG | 3.0 | % | ||
Gecina SA | 2.8 | % | ||
Mercialys | 2.8 | % |
Portfolio holdings are subject to change daily.
16
Table of Contents
ING European Real Estate Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643580.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||
Since Inception | ||||||||
of Class A, B, C, and I | ||||||||
1 Year | November 1, 2007 | |||||||
Including Sales Charge: | ||||||||
Class A(1) | 28.86 | % | (16.48) | % | ||||
Class B(2) | 30.71 | % | (16.28) | % | ||||
Class C(3) | 34.77 | % | (14.83) | % | ||||
Class I | 37.07 | % | (13.78) | % | ||||
Excluding Sales Charge: | ||||||||
Class A | 36.84 | % | (13.97) | % | ||||
Class B | 35.71 | % | (14.67) | % | ||||
Class C | 35.77 | % | (14.83) | % | ||||
Class I | 37.07 | % | (13.78) | % | ||||
S&P Europe Property Index(4) | 33.46 | % | (23.58) | % |
Based on a $10,000 initial investment, the table and graph above illustrate the total return of ING European Real Estate Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund Shares.
The performance shown may include the effect of the waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 4%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the since inception return. |
(4) | The S&P Europe Property Index is an unmanaged float-adjusted index which defines and measures the investable universe of publicly traded property companies domiciled in developed European countries, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. |
17
Table of Contents
ING Foreign Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
United Kingdom | 12.2 | % | |||
Japan | 11.0 | % | |||
France | 8.9 | % | |||
Germany | 7.7 | % | |||
Australia | 6.7 | % | |||
Switzerland | 6.7 | % | |||
China | 4.7 | % | |||
Canada | 4.3 | % | |||
Russia | 4.3 | % | |||
Netherlands | 3.9 | % | |||
Italy | 3.3 | % | |||
Spain | 3.2 | % | |||
Countries between 1.6% – 2.7%(1) | 11.8 | % | |||
Countries less than 1.6%(2) | 11.9 | % | |||
Other Assets and Liabilities – Net* | (0.6 | )% | |||
Net Assets | 100.0 | % |
* | Includes short-term investments related to ING Institutional Prime Money Market Fund – Class I and securities lending collateral. | ||
(1) | Includes five countries, which each represents 1.6% - 2.7% of net assets. | ||
(2) | Includes twenty countries, which each represents less than 1.6% 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 of Artio Global Management LLC — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 14.38% compared to the MSCI All Country World (ex-US) Indexsm(1) (“MSCI ACWI (ex-US)”), which returned 34.10% for the same period.
Portfolio Specifics: The twelve months ended October 31, 2009 marked a dramatic period of extremes for equity investors. After suffering severe market disruptions in the beginning of the period, an environment which initially centered on risk aversion quickly shifted toward risk taking amid massive stimulus programs by governments worldwide. The market’s abrupt move upward began in early March and was of a magnitude not witnessed in decades. It proved especially challenging to navigate through these historic inflection points within international equity markets.
During the reporting period, the Fund underperformed its benchmark. Our defensive positioning, which was initially supportive to relative results, led to the underperformance. In early March, negative sentiment previously targeted at banks and other areas quickly began to turn hopeful. A sudden, sharp move upward in financial companies, emerging markets and more cyclical industries led us to underperform given our underweight to and stock selection within many of these sectors as well as a focus on companies we deemed as having higher-quality balance sheets. As fundamentals improved, we reduced the defensive positioning between the Fund and the benchmark but the speed and extent that markets turned left a negative imprint on relative results.
The Fund’s underweight to Latin America (notably Brazil) and emerging Asia negatively impacted performance. Additionally, positions held in Central and Eastern European banks detracted from performance. An avoidance of developed market financial firms at the start of the reporting period also proved costly. Stock selection had a negative impact in most sectors, especially financials. On a positive note, stock selection within the materials sector, particularly in metals and mining holdings in Australia, Canada and the UK, contributed to results amid expectations that government stimulus efforts would lead to increased demand for raw materials. Finally, the position held in cash equivalents hurt returns.
Current Strategy and Outlook: We have transitioned the Fund to take advantage of sectors and companies which we believe may benefit from the dynamics unfolding in the New World versus Old World. This has led us to favor companies and countries linked to the commodity/materials sector amid continued stimulus spending in the emerging markets. We also favor industrial companies such as airports and seaports which we have long viewed as quasi-monopolies and the cement industry.
Headwinds which plagued the financial sector appear to have moderated partially as a result of efforts to increase the overall level of capital in the system. Our investments in the industry have generally been in larger companies across markets, affording us the opportunity to reposition quickly if necessary.
In the long-term, we see emerging Asia and Latin America closely linked to global imbalances (i.e. US overspending), which we believe creates market vulnerabilities. However, these regions’ cyclicality may support investments. In China, we increased the banking sector weighting to potentially benefit from a recovery of the local economy and attractive valuations. The Chinese government is taking steps to move from an export-oriented economy to a consumer-driven model, but this process is expected to take years.
(1) | The MSCI ACWI (ex-US) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
iShares MSCI Taiwan Index Fund | 2.2 | % | ||
Rio Tinto, Ltd. | 1.6 | % | ||
Nestle SA | 1.3 | % | ||
HSBC Holdings PLC | 1.3 | % | ||
Komercni Banka A/S | 1.2 | % | ||
Rio Tinto PLC | 1.2 | % | ||
China Construction Bank | 1.2 | % | ||
Fraport AG Frankfurt Airport Services Worldwide | 1.1 | % | ||
Telefonica SA | 1.1 | % | ||
Toyota Motor Corp. | 1.1 | % |
Portfolio holdings are subject to change daily.
18
Table of Contents
ING Foreign Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643581.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||||||||||||
of Class A | of Class B | of Class C | of Class I | of Class Q | of Class W | |||||||||||||||||||||||||||
1 Year | 5 Year | July 1, 2003 | July 8, 2003 | July 7, 2003 | September 8, 2003 | July 10, 2003 | February 12, 2008 | |||||||||||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||||||||||||||
Class A(1) | 7.82 | % | 2.84 | % | 6.01 | % | — | — | — | — | — | |||||||||||||||||||||
Class B(2) | 8.42 | % | 2.93 | % | — | 5.73 | % | — | — | — | — | |||||||||||||||||||||
Class C(3) | 12.43 | % | 3.28 | % | — | — | 5.79 | % | — | — | — | |||||||||||||||||||||
Class I | 14.82 | % | 4.42 | % | — | — | — | 6.56 | % | — | — | |||||||||||||||||||||
Class Q | 14.37 | % | 4.11 | % | — | — | — | — | 6.83 | % | — | |||||||||||||||||||||
Class W | 14.79 | % | — | — | — | — | — | — | (17.92) | % | ||||||||||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||||||||||||||
Class A | 14.38 | % | 4.07 | % | 7.00 | % | — | — | — | — | — | |||||||||||||||||||||
Class B | 13.42 | % | 3.28 | % | — | 5.73 | % | — | — | — | — | |||||||||||||||||||||
Class C | 13.43 | % | 3.28 | % | — | — | 5.79 | % | — | — | — | |||||||||||||||||||||
Class I | 14.82 | % | 4.42 | % | — | — | — | 6.56 | % | — | — | |||||||||||||||||||||
Class Q | 14.37 | % | 4.11 | % | — | — | — | — | 6.83 | % | — | |||||||||||||||||||||
Class W | 14.79 | % | — | — | — | — | — | — | (17.92) | % | ||||||||||||||||||||||
MSCI ACWI (ex-US)(4) | 34.10 | % | 7.10 | % | 11.06 | % | 11.06 | %(5) | 11.06 | %(5) | 10.38 | %(6) | 11.06 | %(5) | (11.20) | %(7) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Foreign Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in an index. The Fund’s performance is shown both with and without imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The MSCI ACWI (ex-US) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the 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. |
(5) | Since inception performance for the index is shown from July 1, 2003. |
(6) | Since inception performance for the index is shown from September 1, 2003. |
(7) | Since inception performance for the index is shown from February 1, 2008. |
19
Table of Contents
ING Greater China Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
Hong Kong | 39.3 | % | |||
China | 34.7 | % | |||
Taiwan | 27.0 | % | |||
Other Assets and Liabilities – Net | (1.0 | )% | |||
Net Assets | 100.0 | % |
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 year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 67.10% compared to the MSCI All Countries Golden Dragon Index(1), which returned 66.85% for the same period.
Portfolio Specifics: China was the best performer during the Fund’s fiscal year, as the MSCI China® Index gained 82.2% in U.S.-dollar terms. The central government of China responded to the global credit crisis by actively promoting new bank lending to stimulate domestic credit demand. New loans extended reached 9.5 trillion renminbi ($1.4 trillion U.S.) for the year ended October 31. As a result, the economy recovered gradually with gross domestic product (“GDP”) growth of 8.9% year-over-year.
Industrial production in China also climbed significantly from 5.4% year-over-year growth in November 2008 to 16.1% in October 2009. Due to weak external demand, exports fell significantly, to (26.4)% year-over-year in May 2009, but recovered to (13.8)% year-over-year in October 2009. To divert growth from the export sector to domestic consumption, the Chinese government launched various subsidy policies from the autos sector to appliances. As a result, domestic retail sales grew 15.3% year-over-year in the first 10 months of 2009.
In the earlier part of the year, the Fund’s overweights in China and Hong Kong real estate benefited returns as property prices rebounded. Overweights in certain materials stocks also contributed to results. Stock selection in other higher beta sectors such as information technology and industrials also helped results as those sectors outperformed in the rising market.
The Fund’s positions in defensive sectors such as telecommunications services and utilities hurt results for the period. An overweight in telecommunications, combined with strongly negative stock selection, represented the most significant drag on performance. An underweight in utilities was a positive, but was offset by negative stock selection. The Fund’s underweight of consumer discretionary stocks also hurt results for the period.
The stocks that made the greatest contributions to return over the period were overweights in China Overseas Land and Investment Ltd. and Taiwan Fertilizer Co. Ltd. Overweights in Guangzhou R&F Properties Co. Ltd. and Agile Property Holdings Ltd., helped as the Chinese property sector rebounded strongly in the first half of the year. Overweights in Taiwan Cement Corp. and Far Eastern New Century Corp. also helped as the materials sector benefited from global economic stimulus.
The most significant detractors from results were underweights in MediaTek, Inc. (information technology) and Hutchison Whampoa Ltd. (industrials). Other detractors included underweights of China Unicom (Hong Kong) Ltd. (telecommunications services), Cathay Financial Holding Co. Ltd. (financials) and Taiwan Semiconductor Manufacturing Co. Ltd. (information technology).
Current Strategy and Outlook: In our opinion, the macroeconomic recovery in China is picking up steam. Despite market concerns, we believe bank lending and money supply data continue to show strong support for liquidity conditions. Thanks to its strong fiscal position and healthy household sector, we believe China’s economic outlook and stock market potential are still superior to the rest of the world. On the negative side, inflation could accelerate, which could lead to tightening measures such as increased reserve ratios or interest rate hikes.
Nevertheless, we believe the valuations of Chinese stocks are still not excessive and the strong fundamentals warrant a premium to other developed markets. In Taiwan, the political situation should continue to improve with both sides of the strait taking a more pragmatic view on promoting economic growth in Taiwan. We believe the longer-term outlook of the Taiwan asset play remains positive with such improvement in the political situation.
(1) | The MSCI All Countries Golden Dragon Index is a broad-based, unmanaged index of common stocks traded in China, Hong Kong and Taiwan. It is an aggregate of the MSCI Hong Kong Index, the MSCI China Free Index and the MSCI Taiwan Index. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
China Mobile, Ltd. | 7.0 | % | ||
China Construction Bank | 5.3 | % | ||
Industrial and Commercial Bank of China, Ltd. | 5.2 | % | ||
Wharf Holdings, Ltd. | 3.5 | % | ||
China Life Insurance Co., Ltd. | 3.4 | % | ||
Cheung Kong Holdings, Ltd. | 3.4 | % | ||
PetroChina Co., Ltd. | 3.3 | % | ||
Bank of China, Ltd. | 3.1 | % | ||
China Petroleum & Chemical Corp. | 2.9 | % | ||
HongKong Electric Holdings | 2.7 | % |
Portfolio holdings are subject to change daily.
20
Table of Contents
ING Greater China Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643582.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | Since Inception | ||||||||||||||||||||
of Class A | of Class B | of Class C | of Class I | of Class O | ||||||||||||||||||||
1 Year | December 21, 2005 | January 6, 2006 | January 11, 2006 | May 8, 2006 | June 4, 2008 | |||||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||||||
Class A(1) | 57.55 | % | 13.61 | % | — | — | — | — | ||||||||||||||||
Class B(2) | 60.73 | % | — | 12.38 | % | — | — | — | ||||||||||||||||
Class C(3) | 64.77 | % | — | — | 12.81 | % | — | — | ||||||||||||||||
Class I | 67.79 | % | — | — | — | 9.43 | % | — | ||||||||||||||||
Class O | 66.79 | % | — | — | — | — | (5.92 | )% | ||||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||||||
Class A | 67.10 | % | 15.37 | % | — | — | — | — | ||||||||||||||||
Class B | 65.73 | % | — | 12.94 | % | — | — | — | ||||||||||||||||
Class C | 65.77 | % | — | — | 12.81 | % | — | — | ||||||||||||||||
Class I | 67.79 | % | — | — | — | 9.43 | % | — | ||||||||||||||||
Class O | 66.79 | % | — | — | — | — | (5.92 | )% | ||||||||||||||||
MSCI All Countries Golden Dragon Index(4) | 66.85 | % | 11.69 | %(5) | 11.69 | %(5) | 11.69 | %(5) | 8.05 | %(6) | (8.86 | )%(7) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Greater China Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The MSCI All Countries Golden Dragon Index is a broad-based, unmanaged index of common stocks traded in China, Hong Kong and Taiwan. It is an aggregate of the MSCI Hong Kong Index, the MSCI China Free Index and the MSCI Taiwan Index. |
(5) | Since inception performance for the index is shown from January 1, 2006. |
(6) | Since inception performance for the index is shown from May 1, 2006. |
(7) | Since inception performance for the index is shown from June 1, 2008. |
21
Table of Contents
ING Index Plus International Equity Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Japan | 21.2 | % | |||
United Kingdom | 18.1 | % | |||
Australia | 8.8 | % | |||
France | 8.6 | % | |||
Switzerland | 8.2 | % | |||
Germany | 7.6 | % | |||
Spain | 5.6 | % | |||
Sweden | 4.4 | % | |||
Netherlands | 4.3 | % | |||
Italy | 3.0 | % | |||
Hong Kong | 2.4 | % | |||
Belgium | 1.4 | % | |||
Countries less than 1.4%(1) | 6.6 | % | |||
Other Assets and Liabilities – Net | (0.2 | )% | |||
Net Assets | 100.0 | % |
(1) | Includes ten countries, which each represents less than 1.4% 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 MSCI Europe, Australasia and Far East® Index(1) (“MSCI EAFE® Index”) while maintaining a market level of risk. The Fund is managed by Carl Ghielen, Portfolio Manager and Martin Jansen, Portfolio Manager, both of ING Investment Management Advisors B.V. — the Sub Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 27.40% compared to the MSCI EAFE® Index, which returned 27.71% for the same period.
Portfolio Specifics: The Fund’s strategy is designed to add value to the MSCI EAFE® Index through bottom-up security selection on the basis of customized sector models while maintaining approximate benchmark weights of regions/countries, sectors and industries represented in the benchmark. The active risk is substantially controlled by the relatively large number of securities in the portfolio (between 280 and 380). As a first step, the best ranked 200 stocks are selected for inclusion across countries, sectors and industries. To ensure that appropriate index weights and an index-like profile are maintained, an additional 80-180 of the next most attractive securities are added. The Fund is rebalanced monthly to maintain the desired tilt to stocks ranking well in the individual sectors and industries represented in the benchmark.
The predictive power of the quantitative models in exceptionally volatile and turbulent markets proved modestly problematic in the period through March, but our models were effective in the remainder of the reporting period in tandem with strongly recovering markets. For the reporting period as a whole, valuation factors were effective, especially after March, while business momentum and quality factors were caught on a wrong footing after the major trough in March.
On a net-asset-value basis, the Fund underperformed its benchmark for the fiscal year ended October 31, 2009. Before deducting fees, however, the Fund’s positive performance was largely due to stock selection in Europe, and to a lesser extent developed Asia ex-Japan and Japan. Modest value and small capitalization tilts constituted a headwind in the first half of the reporting year, but were appropriate in the recovery phase. By design, the Fund’s sector and region weights approximate that of the benchmark and accordingly did not add value relative to the benchmark.
The efficacy of the individual factors included in each of the regional sector models for a particular reporting period substantially determines the stock selection result in each sector. For this reporting period, our positioning in the materials had the largest positive impact, due largely to valuation factors in the sector model. In financials, the percentile/best factor (valuation) added value. Positioning in the industrials, consumer discretionary and consumer staples sectors also proved beneficial. A detraction from the healthcare sector was due to the poor predictive power of the earnings growth and price reversion factors for that sector.
Current Strategy and Outlook: By design, the Fund maintains approximate benchmark weights of the regions, economic sectors, and industries constituting the 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 stay within an acceptable band around the benchmark. Our most attractive ranking stocks may have overweights of up to half a percentage point above their weightings in the index; for risk control purposes the maximum allowable underweight per security is half a percentage point below its weighting in the index. 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 and a recovery of the developed economies. The current portfolio of stocks has historically generated earnings growth slightly exceeding that of the index, carries a dividend yield similar to the index, has an equivalent return on equity, but has less leverage than the index.
(1) | The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
HSBC Holdings PLC | 2.0 | % | ||
Total SA | 1.7 | % | ||
BP PLC | 1.5 | % | ||
Banco Santander SA | 1.5 | % | ||
Telefonica SA | 1.4 | % | ||
Roche Holding AG – Genusschein | 1.4 | % | ||
BHP Billiton, Ltd. | 1.4 | % | ||
Novartis AG | 1.3 | % | ||
Nestle SA | 1.3 | % | ||
Royal Dutch Shell PLC – Class B | 1.2 | % |
Portfolio holdings are subject to change daily.
22
Table of Contents
ING Index Plus International Equity Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643583.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||
Since Inception | Since Inception | Since Inception | ||||||||||||||
of Class A and I | of Class B and C | of Class O | ||||||||||||||
1 Year | December 21, 2005 | January 12, 2006 | November 9, 2007 | |||||||||||||
Including Sales Charge: | ||||||||||||||||
Class A(1) | 20.03 | % | (3.03 | )% | — | — | ||||||||||
Class B(2) | 21.41 | % | — | (3.81 | )% | — | ||||||||||
Class C(3) | 25.45 | % | — | (3.22 | )% | — | ||||||||||
Class I | 27.81 | % | (0.97 | )% | — | — | ||||||||||
Class O | 27.60 | % | — | — | (16.52 | )% | ||||||||||
Excluding Sales Charge: | ||||||||||||||||
Class A | 27.40 | % | (1.53 | )% | — | — | ||||||||||
Class B | 26.41 | % | — | (3.16 | )% | — | ||||||||||
Class C | 26.45 | % | — | (3.22 | )% | — | ||||||||||
Class I | 27.81 | % | (0.97 | )% | — | — | ||||||||||
Class O | 27.60 | % | — | — | (16.52 | )% | ||||||||||
MSCI EAFE® Index(4) | 27.71 | % | 0.33 | %(5) | 0.33 | %(5) | (17.44 | )%(6) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Index Plus International Equity Fund against the index indicated. The Index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | 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. |
(5) | Since inception performance for the index is shown from January 1, 2006. |
(6) | Since inception performance for the index is shown from November 1, 2007. |
23
Table of Contents
ING International Capital Appreciation Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643511b.gif)
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 year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 37.80%, including a return of capital of $0.01 per share, compared to the MSCI All Country World (ex-US) Indexsm(1) (“MSCI ACWI (ex-US) Indexsm”), which returned 34.10% for the same period.
Portfolio Specifics: The Fund outperformed the benchmark during the year ended October 31, 2009 as volatility declined from the levels seen during the fourth quarter of 2008 and investors returned to equities. The majority of the Fund’s outperformance was driven by security selection reflective of the fundamental bottom-up strategy used by the Sub-Adviser.
According to attribution, the information technology, industrials and materials sectors were the largest contributors to performance over the past year, due primarily to positive security selection. Within the information technology sector, Tencent Holdings Ltd. and Autonomy Corp. PLC were the largest contributors to relative performance. Within the industrials sector, global wind power giant, Vestas Wind Systems A/S was the largest contributor followed by Japanese battery maker and diesel particulate filter manufacturer NGK Insulators Ltd. China Communications Construction Co., Ltd. also contributed to performance as China’s large stimulus spend impacted the company positively. Vedanta Resources PLC, a UK mining company with exposure to Indian economic growth was a large contributor in the materials sector as global expectations of an economic recovery took hold. The consumer discretionary, consumer staples and healthcare sectors were the only sectors to detract from performance during the past year.
Attribution indicates that from a regional perspective, Europe, Emerging Markets and Pacific ex-Japan were the largest contributors to relative performance, primarily due to security selection. Japan also contributed to relative performance due to an underweight position relative to the benchmark. Millicom International Cellular SA, Prudential PLC and Telefonica SA were among the stronger European performers in the Fund over the past year. Emerging Markets posted strong returns over the year driven by Chinese property company Agile Property Holdings Ltd., Brazilian oil company Petroleo Brasileiro SA ADR and Brazilian mining company, Vale SA ADR.
Current Strategy and Outlook: Economically, we believe the stimulus is kicking in and we’ve continued to see some stabilization in developed economies in 2009. Many countries are now starting to think about their exit strategies in terms of stimulus plans. We believe that emerging markets should continue to be the engine of growth. We are optimistic about China and the growth opportunities there from infrastructure spending and government stimulus. India is also growing faster than the developed world, but it is more of a domestic growth story. Commodity-related emerging economies may have a bit of a time lag in terms of growth, as the demand for energy and commodities in emerging markets may not be enough to offset the decline in demand from developed economies. In our opinion, demand appears to be rising, but it is still fairly muted at this point and risks remain that growth expectations will not be met.
We continue to actively pursue a disciplined, consistent approach that seeks to select stocks from, what we believe are, high quality companies with strong secular growth profiles and compelling competitive advantages. We believe the Fund is well positioned to capitalize on good growth opportunities over the coming year.
(1) | The MSCI ACWI (ex-US) is a free float-adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the U.S. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings*
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Vedanta Resources PLC | 2.5 | % | ||
Autonomy Corp. PLC | 2.2 | % | ||
Tencent Holdings, Ltd. | 2.2 | % | ||
Cameco Corp. | 2.1 | % | ||
Electricite de France | 2.0 | % | ||
Vale SA ADR | 2.0 | % | ||
Prudential PLC | 1.9 | % | ||
Rio Tinto, Ltd. | 1.9 | % | ||
Telefonica SA | 1.9 | % | ||
Iliad SA | 1.8 | % |
* | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
24
Table of Contents
ING International Capital Appreciation Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643584.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||
of Class A and I | of Class B | of Class C | of Class Q | |||||||||||||||||
1 Year | December 21, 2005 | January 9, 2006 | January 24, 2006 | August 7, 2009 | ||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||
Class A(1) | 29.85 | % | (1.67 | )% | — | — | — | |||||||||||||
Class B(2) | 31.68 | % | — | (2.71 | )% | — | — | |||||||||||||
Class C(3) | 35.38 | % | — | — | (1.70 | )% | — | |||||||||||||
Class I | 38.21 | % | 0.18 | % | — | — | — | |||||||||||||
Class Q | — | — | — | — | 5.12 | % | ||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||
Class A | 37.80 | % | (0.15 | )% | — | — | — | |||||||||||||
Class B | 36.68 | % | — | (1.99 | )% | — | — | |||||||||||||
Class C | 36.38 | % | — | — | (1.70 | )% | — | |||||||||||||
Class I | 38.21 | % | 0.18 | % | — | — | — | |||||||||||||
Class Q | — | — | — | — | 5.12 | % | ||||||||||||||
MSCI ACWI (ex-US)SM(4) | 34.10 | % | 2.12 | %(5) | 2.12 | %(5) | 0.35 | %(6) | 7.68 | %(7) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International Capital Appreciation Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The MSCI ACWI (ex-US) is a free float-adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the U.S. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
(5) | Since inception performance for the index is shown from January 1, 2006. |
(6) | Since inception performance for the index is shown from February 1, 2006. |
(7) | Since inception performance for the index is shown from August 1, 2009. |
25
Table of Contents
ING International Real Estate Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643512b.gif)
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 year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 25.77% compared to the Standard & Poor’s (“S&P”) Developed ex-US Property Index(1) which returned 38.93% for the same period.
Portfolio Specifics: The past twelve months have been a period of positive total returns for international real estate stocks, as improving capital market conditions and improving economic conditions have benefited investors. Governments and Central Banks responded quickly and aggressively to credit issues in the fourth quarter of 2008 and first quarter of 2009, providing access to significant capital support for financial institutions as well as interest rate cuts. The resulting impact is becoming evident via recent economic reports, including second quarter gross domestic product (“GDP”) data that surpassed expectations, which has led to positive revisions to future growth estimates an acknowledgment that the recession, which impacted many of the world’s developed economies, may have ended. The Asia-Pacific property stocks fared the best over the past twelve months, followed by the European region.
Within the Asia-Pacific region, performance was driven by the strength of the Singapore and Hong Kong markets. Economic growth in Asia has been robust. China’s economic growth accelerated to an 8.9% rate year-on-year versus 6.1% and 7.9% during the first two quarters of 2009, respectively. Singapore revised its GDP growth forecast range for 2009 to -2.0% to -2.5% from the previous forecast range of -4% to -6%. The notable laggard in the region has been Japan, where property markets were up modestly during the past twelve months.
Within the European region, the return differential between countries has been quite substantial, ranging from a positive return posted by Austria, the best-performing market during the period, to a negative return posted by Spain, the poorest-performing market during the period. On whole, the countries which fared the best in the current environment were the countries in the Benelux region (the Benelux region is a union in Western Europe that comprises three neighboring countries — Belgium, the Netherlands, and Luxembourg) as well as Germany and France; the countries which fared the worst were in Southern, Central and Eastern Europe as well as the U.K.
While absolute returns were strong during the period, the Fund lagged its benchmark as the result of both stock selection and asset allocation decisions. Stock selection, which accounted for two-thirds of the period’s underperformance, was somewhat mixed as positive stock selection in Brazil and the U.K. was more than offset by sub-par stock selection in the Asia-Pacific region, primarily in Japan, Singapore, Australia and Hong Kong. Country allocation decisions hurt returns as an average underweight to the outperforming Asia-Pacific more than offset the slightly positive contribution of favorable country selection in Europe.
Current Strategy and Outlook: The Fund continues to maintain a bias toward, what we believe are, high-quality companies. We remain overweight sectors and geographies offering long-term leases and high percentages of earnings from recurring sources (primarily contract lease rental income). We prefer companies that we believe offer more transparency, strong balance sheets and good, experienced management teams.
We believe international property companies are generally fairly valued. We estimate the average international property company trades at a modest discount to our internal estimate of inherent private real estate market value. In our opinion, the rationale for an international listed property strategy remains very much intact including diversification via low long-term correlation to broad equities and bonds, attractive current yield, reasonable valuations and the continued, gradual spread of the real estate investment trust (“REIT”) structure globally. In our view, through an average 3% to 4% dividend yield plus, fundamentals which are bottoming and access to the capital markets, international property stocks should be well-positioned to deliver modestly attractive total returns over the next several years.
(1) | The S&P Developed ex-US Property Index is an unmanaged float-adjusted index which defines and measure the investable universe of publicly traded property companies domiciled in developed countries, outside of the United States, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. It includes the reinvestment of dividends but is gross of withholding taxes on dividends and does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings*
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Sun Hung Kai Properties, Ltd. | 7.0 | % | ||
Westfield Group | 6.3 | % | ||
Unibail | 6.2 | % | ||
Cheung Kong Holdings, Ltd. | 5.5 | % | ||
Mitsui Fudosan Co., Ltd. | 4.3 | % | ||
Mitsubishi Estate Co., Ltd. | 3.6 | % | ||
Land Securities Group PLC | 3.5 | % | ||
Sumitomo Realty & Development Co., Ltd. | 2.7 | % | ||
Stockland | 2.5 | % | ||
British Land Co. PLC | 2.0 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. |
Portfolio holdings are subject to change daily.
26
Table of Contents
ING International Real Estate Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643587.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||
Since Inception | Since Inception | |||||||||||
of Class A, B, C and I | of Class W | |||||||||||
1 Year | February 28, 2006 | February 12, 2008 | ||||||||||
Including Sales Charge: | ||||||||||||
Class A(1) | 18.56 | % | (3.27 | )% | — | |||||||
Class B(2) | 19.82 | % | (3.16 | )% | — | |||||||
Class C(3) | 23.76 | % | (2.45 | )% | — | |||||||
Class I | 26.12 | % | (1.40 | )% | — | |||||||
Class W | 26.61 | % | — | (13.89 | )% | |||||||
Excluding Sales Charge: | ||||||||||||
Class A | 25.77 | % | (1.70 | )% | — | |||||||
Class B | 24.82 | % | (2.42 | )% | — | |||||||
Class C | 24.76 | % | (2.45 | )% | — | |||||||
Class I | 26.12 | % | (1.40 | )% | — | |||||||
Class W | 26.61 | % | — | (13.89 | )% | |||||||
S&P Developed ex-US Property Index(4) | 38.93 | % | (3.07 | )%(5) | (16.89 | )%(6) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International Real Estate Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund Shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
The performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The S&P Developed ex-US Property Index (formerly, the S&P/Citigroup BMI World Property ex-US Index) is an unmanaged float-adjusted index which defines and measure the investable universe of publicly traded property companies domiciled in developed countries, outside of the United States, that derive more than half of their revenue from property-related activities, such as property ownership, management, development, rental and investment. |
(5) | Since inception performance of the index is shown from March 1, 2006. |
(6) | Since inception performance of the index is shown from February 1, 2008. |
27
Table of Contents
ING International SmallCap Multi-Manager Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643513b.gif)
Portfolio holdings are subject to change daily.
ING International SmallCap Multi-Manager Fund (the “Fund”) seeks maximum long term capital appreciation. The Fund’s assets are managed by three sub-advisers — Acadian Asset Management LLC (“Acadian”), Batterymarch Financial Management, Inc. (“Batterymarch”) and Schroder Investment Management North America Inc. (“Schroders”). Each manages a portion of the Fund’s assets that is allocated to the sub-adviser. The following individuals are primarily responsible for the day-to-day management of their respective portions of the Fund: John R. Chisholm, CFA, Executive Vice President and Co-Chief Investment Officer, Matthew J. Cohen, CFA, Senior Vice President, Constantine P. Papageorgiou, CFA, Vice President, Brian K. Wolahan, CFA, and Qi R. Zeng, CFA, Senior Vice President, all Portfolio Managers of Acadian*; Charles F. Lovejoy, CFA, Director and Senior Portfolio Manager, Christopher W. Floyd, CFA, Portfolio Manager and Adam J. Petryk, Senior Director and Global Investment Strategist of Batterymarch; Matthew Dobbs, Portfolio Manager of Schroders.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 42.73% compared to the Standard & Poor’s (“S&P”) Developed ex-US SmallCap Index(1) and the S&P Euro-Pacific Asia Composite (“EPAC”) SmallCap Index(2), which returned 44.31% and 43.11%, respectively, for the same period.
Portfolio Specifics: Acadian Sleeve(3) — During the period, the fund was focused on attractively valued small-cap stocks that appeared likely to rise in price based on earnings data, price characteristics and quality. For the year ended October 31, 2009, the fund outperformed the S&P Developed ex-US SmallCap Index by approximately 9.50%(4). Value added was largely the result of country allocations, with active stock selection also contributing modestly. Key drivers of positive active returns were a combination of stock- and country-level performance in Singapore and China, the active allocations to India, Taiwan and Turkey, and stock selection in Germany. Less successful investments included a combination of stock selection and market positioning in Australia and Japan, as well as stock selection in Canada. Batterymarch Sleeve(3) — The fund underperformed the S&P Developed ex-US SmallCap Index by approximately 15.80%(4) for the period. Our investment process is based on broad fundamentals, and for much of this period (after the market bounce in March) only value was rewarded regardless of other fundamental characteristics. The best performing stocks were of lower quality, lower growth and higher leverage, and did not rank well in our process. Stock selection detracted most in the consumer discretionary and information technology sectors within continental Europe and Japan. Schroders Sleeve(3) — Over the fiscal year international smallcap equities staged a dramatic recovery and outperformed larger cap stocks in all the major regions. Pacific ex Japan offered the best absolute returns, while in sector terms, the key out-performers have been more cyclical areas such as consumer discretionary, financials and technology, while consumer staples and utilities have lagged. In line with our investment philosophy, our focus remained upon identifying under-valued smaller companies offering scope for superior and visible growth. This philosophy yielded good relative returns over the period as a whole, with stock selection the main contributor to the fund’s excess returns of approximately 5.60%(4) versus the S&P EPAC SmallCap Index. Stock selection has added value in all the major regions, and while cash holdings have held back returns in a period of rising markets, the overweight in Pacific ex Japan has contributed to relative performance.
Current Strategy and Outlook: Acadian Sleeve(3) — We expect continued elevated market volatility over the next year and some moderation of recent gains, but with an overall market trajectory that will be positive. In our opinion, investors will move away from lower quality stocks as market conditions stabilize. We believe there are many areas of attractive valuation across global markets, and earnings are likely to continue to improve as the global economy recovers. We are seeing greater dispersion in terms of how companies rank on our various stock factors, which we believe should provide a fertile ground for active management over the coming months. Batterymarch Sleeve(3) — Investors are attempting to reconcile signs of economic improvement with the problems that persist, such as continuing unemployment. However, the value spread has narrowed, removing fuel for a continued value run, and as economic uncertainty decreases, we believe analyst estimate dispersion looks poised to decline. In our opinion, both bode well for a more balanced and broadened market going forward The fund remains well diversified, invested in what we believe are high quality stocks that rank attractively relative to peers. As of October 31, 2009, the fund remained attractively valued versus the benchmark, with a lower 12 month forward price to earnings ratio (11.6x vs. 13.5x) and a higher return on equity (13.5% vs. 9.8% blend of 1 year and 5 year average). Schroders Sleeve(3) — In terms of strategy over the year, we retained an overweight stance in Pacific ex Japan, due to what we consider attractive growth prospects and stock opportunities. We remained cautious on Japan, but added to exposure through more defensive stocks which we believed had begun to offer long-term value. The fund has remained underweight in the United Kingdom reflecting our continued concerns over the headwinds to domestic demand. We believe some of these issues confront areas of continental Europe and we remain underweight in sectors such as financials and consumer cyclicals both in the United Kingdom and in continental Europe.
* | Mr. Papageorgiou, Mr. Wolaham and Ms. Zeng were added as portfolio managers to the Acadian managed portion of the Fund in February 2009. |
(1) | The S&P Developed ex-US SmallCap Index is an unmanaged float-adjusted index which captures the bottom 15% of companies in the developed markets, based on the cumulative market capitalization of each country, excluding the United States, within the S&P Global Broad Market Index, which covers all publicly listed equities in 47 countries with a float-adjusted market capitalization of US$100 million or greater and a minimum annual trading liquidity of US$50 million. |
(2) | The S&P EPAC SmallCap Index is an unmanaged float-adjusted index which captures the bottom 15% of companies in the developed European and Pacific markets, based on the cumulative market capitalization of each country, within the S&P Global Broad Market Index, which covers all publicly listed equities in 47 countries with a float adjusted market capitalization of US$100 million or greater and a minimum annual trading liquidity of US $50 million. |
(3) | For purposes of these discussions, “the fund” refers to each Sub-Adviser’s respectively managed portion of ING International SmallCap Multi-Manager Fund. |
(4) | Gross performance 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 October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
MTU Aero Engines Holding AG | 1.2 | % | ||
CGI Group, Inc. – Class A | 0.8 | % | ||
Rallye SA | 0.8 | % | ||
Alimentation Couche-Tard, Inc. | 0.8 | % | ||
Valora Holding AG | 0.7 | % | ||
Virgin Media, Inc. | 0.7 | % | ||
Beijing Enterprises Water Group, Ltd. | 0.6 | % | ||
Schweizerhall Holding AG | 0.6 | % | ||
Bilfinger Berger AG | 0.6 | % | ||
NCC AB | 0.6 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. |
Portfolio holdings are subject to change daily.
28
Table of Contents
ING International SmallCap Multi-Manager Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643588.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | ||||||||||||||||||||||
of Class I | of Class O | of Class W | ||||||||||||||||||||||
1 Year | 5 Year | 10 Year | December 21, 2005 | June 4, 2008 | February 12, 2008 | |||||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||||||
Class A(1) | 34.51 | % | 4.44 | % | 3.40 | % | — | — | — | |||||||||||||||
Class B(2) | 36.60 | % | 4.64 | % | 3.36 | % | — | — | — | |||||||||||||||
Class C(3) | 40.80 | % | 5.00 | % | 3.36 | % | — | — | — | |||||||||||||||
Class I | 43.57 | % | — | — | (1.06 | )% | — | — | ||||||||||||||||
Class O | 43.07 | % | — | — | — | (23.29 | )% | — | ||||||||||||||||
Class Q | 43.13 | % | 5.90 | % | 4.26 | % | — | — | — | |||||||||||||||
Class W | 43.54 | % | — | — | — | — | (14.79 | )% | ||||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||||||
Class A | 42.73 | % | 5.69 | % | 4.01 | % | — | — | — | |||||||||||||||
Class B | 41.60 | % | 4.98 | % | 3.36 | % | — | — | — | |||||||||||||||
Class C | 41.80 | % | 5.00 | % | 3.36 | % | — | — | — | |||||||||||||||
Class I | 43.57 | % | — | — | (1.06 | )% | — | — | ||||||||||||||||
Class O | 43.07 | % | — | — | — | (23.29 | )% | — | ||||||||||||||||
Class Q | 43.13 | % | 5.90 | % | 4.26 | % | — | — | — | |||||||||||||||
Class W | 43.54 | % | — | — | — | — | (14.79 | )% | ||||||||||||||||
S&P Developed ex-US SmallCap Index(4) | 44.31 | % | 7.18 | % | 6.71 | % | 0.65 | %(6) | (17.91 | )%(7) | (10.76 | )%(8) | ||||||||||||
S&P EPAC SmallCap Index(5) | 43.11 | % | 7.25 | % | 6.44 | % | 0.70 | %(6) | (17.56 | )%(7) | (10.38 | )%(8) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International SmallCap Multi-Manager Fund against the indices indicated. An index is unmanaged and has no cash in its portfolio, imposes no sales charges and incurs no operating expenses. An investor cannot invest directly in an index. The Fund’s performance is shown both with and without the imposition of sales charge.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund Shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The S&P Developed ex-US SmallCap Index (formerly, the S&P/Citigroup EMI World ex-US Index) is an unmanaged float-adjusted index which captures the bottom 15% of companies in the developed markets, based on the cumulative market capitalization of each country, excluding the United States, within the S&P Global Broad Market Index, which covers all publicly listed equities in 47 countries with a float adjusted market capitalization of US $100 million or greater and a minimum annual trading liquidity of US $50 million. |
(5) | The S&P EPAC SmallCap Index (formerly, the S&P/Citigroup EMI EPAC Index) is an unmanaged float-adjusted index which captures the bottom 15% of companies in the developed European and Pacific markets, based on the cumulative market capitalization of each country, within the S&P Global Broad Market Index, which covers all publicly listed equities in 47 countries with a float adjusted market capitalization of US $100 million or greater and a minimum annual trading liquidity of US $50 million. |
(6) | Since inception performance for the indices is shown from January 1, 2006. |
(7) | Since inception performance for the indices is shown from June 1, 2008. |
(8) | Since inception performance for the indices is shown from February 1, 2008. |
Prior to March 1, 2005, the Fund was advised by a different sub-adviser.
29
Table of Contents
ING International Value Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643514b.gif)
Portfolio holdings are subject to change daily.
ING International Value Fund (the “Fund”) seeks long-term capital appreciation. The Fund’s assets are managed by two sub-advisers — Brandes Investment Partners, L.P. (“Brandes”) and ING Investment Management Co. (“ING IM”). Each manages a portion of the Fund’s assets that is allocated to the sub-adviser. The following people are responsible for the day-to-day operations of the Fund: Glenn R. Carlson, CFA, Chief Executive Officer, Brent V. Woods, CFA, Managing Director — Investments, Amelia Maccoun Morris, CFA, Director — Investments, W. James Brown, CFA, Director — Investments, Keith Colestock, CFA, Director — Investments, Brent Fredberg, Senior Analyst and Jeffrey Germain, Analyst, comprise the voting members of Brandes’ Large Cap Investment Committee*; Philip Schwartz, John Pairaktaridis and Joseph Vultaggio are the Portfolio Managers for ING IM.
Performance: For year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 21.74% compared to the MSCI Europe, Australasia and Far East® Index (“MSCI EAFE® Index”)(1), which returned 27.71% for the same period.
Portfolio Specifics: Brandes Sleeve(2) - While the fund advanced during the 12-month period, returns trailed the MSCI EAFE® Index by approximately 6.00%(3). Weak relative returns from individual holdings in the commercial banks industry had the greatest negative effect on performance during the period. Conversely, the Fund’s overweight (relative to the benchmark) in the diversified telecommunication services industry proved the greatest benefit to overall results during the period. From a country perspective, on an absolute and relative basis, the fund’s stock selection and allocation in Japan weakened returns, while stock selection in the United Kingdom made the greatest positive contributions to performance during the period. In addition, the fund’s overweight and stock selection in emerging markets made positive contributions to absolute and relative performance. IIM Sleeve(2) — The fund underperformed its benchmark by approximately 10.90%(3) due to a combination of weak security selection and negative sector allocation. Weak selection was most acute in materials, consumer staples, telecommunication services and industrials. Selection within information technology coupled with selection in energy helped to mitigate the losses. From a regional standpoint, selection in Europe, mainly France and the United Kingdom, led to material losses. In contrast, the Fund’s exposure to non-benchmark emerging markets contributed to results and helped to offset the detraction from Europe. Bumi Resources Tbk PT, BMW AG and Deutsche Bank AG were among the top performing stocks during the reporting period. The worst detractors included AXA S.A., Xstrata PLC and Daiwa Securities Group Inc.
Current Strategy and Outlook: Brandes Sleeve(2) — The fund’s industry exposure is a result of our focus on the fundamentals and valuations of individual companies, not any “industry allocation” decision. We take a long-term perspective and believe that none or very little of the short-term “market news” provides useful information to investors. As of October 31, 2009, the fund’s most substantial weights were in Japan and in the diversified telecommunication services industry. IIM Sleeve(2)- We remain positive on equities for the next 12 months, though our outlook is a bit less sanguine than a few months prior. We are more optimistic in the case of international equities, particularly those tied to the emerging markets. Downside risks remain however, as we believe benefits from both stimulus programs and the inventory cycle should peak in the near future. We have reduced our allocation to higher beta stocks, though we continue to have a modest active weight in both oil and gold.
* | Mr. Germain was added to the Brandes Large Cap Investment Committee on April 30, 2009. |
(1) | The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
(2) | For purposes of these discussions, “the fund” refers to each Sub-Adviser’s respectively managed portion of ING International Value Fund. |
(3) | Gross performance 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 October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Sony Corp. | 2.7 | % | ||
Sanofi-Aventis | 2.7 | % | ||
GlaxoSmithKline PLC | 2.5 | % | ||
Carrefour SA | 2.3 | % | ||
Deutsche Telekom AG | 1.9 | % | ||
Barclays PLC | 1.6 | % | ||
Portugal Telecom SGPS SA | 1.6 | % | ||
Seven & I Holdings Co., Ltd. | 1.6 | % | ||
Royal Dutch Shell PLC – Class A | 1.5 | % | ||
BP PLC ADR | 1.4 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I and securities lending collateral. |
Portfolio holdings are subject to change daily.
30
Table of Contents
ING International Value Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643589.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||||||
Since Inception | Since Inception | Since Inception | ||||||||||||||||||||||
of Class I | of Class Q | of Class W | ||||||||||||||||||||||
1 Year | 5 Year | 10 Year | June 18, 2001 | January 24, 2000 | July 20, 2009 | |||||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||||||
Class A(1) | 14.73 | % | 3.01 | % | 5.32 | % | — | — | — | |||||||||||||||
Class B(2) | 15.91 | % | 3.27 | % | 5.21 | % | — | — | — | |||||||||||||||
Class C(3) | 19.92 | % | 3.53 | % | 5.23 | % | — | — | — | |||||||||||||||
Class I | 22.23 | % | 4.62 | % | — | 6.09 | % | — | — | |||||||||||||||
Class Q | 22.21 | % | 4.51 | % | — | — | 4.99 | % | — | |||||||||||||||
Class W | — | — | — | — | — | 8.45 | % | |||||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||||||
Class A | 21.74 | % | 4.24 | % | 5.95 | % | — | — | — | |||||||||||||||
Class B | 20.91 | % | 3.51 | % | 5.21 | % | — | — | — | |||||||||||||||
Class C | 20.92 | % | 3.53 | % | 5.23 | % | — | — | — | |||||||||||||||
Class I | 22.23 | % | 4.62 | % | — | 6.09 | % | — | — | |||||||||||||||
Class Q | 22.21 | % | 4.51 | % | — | — | 4.99 | % | — | |||||||||||||||
Class W | — | — | — | — | — | 8.45 | % | |||||||||||||||||
MSCI EAFE® Index(4) | 27.71 | % | 5.10 | % | 2.05 | % | 4.83 | %(5) | 1.53 | %(6) | 8.10 | %(7) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International Value Fund against the index indicated. The Index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of the fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
The performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 2%, respectively, for the 1 year and 5 year returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | 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. |
(5) | Since inception performance for index is shown from July 1, 2001. |
(6) | Since inception performance for index is shown from February 1, 2000. |
(7) | Since inception performance for index is shown from August 1, 2009. |
31
Table of Contents
ING International Value Choice Fund
Portfolio Managers’ Report
Country Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643515b.gif)
Portfolio holdings are subject to change daily.
ING International Value Choice Fund (the “Fund”) seeks long term capital appreciation. The Fund is managed by Peter Boardman and Alberto Jimenez Crespo, Portfolio Managers* of Tradewinds Global Investors, LLC — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 29.22% compared to the MSCI Europe, Australasia, Far East® Index(1) (“MSCI EAFE® Index”), which returned 27.71% for the same period.
Portfolio Specifics: The Fund was up for the year ended October 31, 2009 and fared better than the MSCI EAFE® Index for the same period. The period was marked by volatility and markets generally posted positive returns and closed at levels significantly higher than the lows reached during the period. As long term investors and stewards of client capital, we continue to focus on investing client assets in those areas where we find most opportunity and that we believe are likely to participate on the upside but also limit losses on the downside.
From both an absolute and relative perspective, the Fund benefited from its materials allocation and the holdings therein, which are comprised of a diverse range of industries operating in several different regions. Gold companies were the standout as their share prices rose as the price of gold moved higher and eventually crossed the psychologically significant $1,000 level. Anglogold Ashanti Ltd. ADR (“Anglogold”) of South Africa and Barrick Gold Corp. of Canada were top contributors to returns over the period; Anglogold further benefited from a strong South African rand, which added to U.S. dollar returns. Conversely, Stora Enso OYJ (Euro Denominated Security), the Finnish paper company, which was one of the Fund’s largest individual detractors, was sold out of the Fund during the period. The paper industry faces declining demand for paper products and pricing pressures that will impact their respective near term profitability objectives. Lonmin PLC, a British platinum company, also weighed on performance and was eliminated from the Fund, in favor of adding to our existing position in its competitor, Impala Platinum Holdings Ltd., which we believe presented a more favorable risk reward opportunity.
The U.S. dollar remains weak. The Fund was also aided by currency returns in both an absolute sense, as the dollar continued its decline during the period, as well as relative to the benchmark, where the Fund’s overweight in both South African rand and Canadian dollar contributed to additional gains versus the benchmark.
The financials sector, in which the Fund maintains a significant underweight relative to the benchmark, was the largest detractor from relative performance. As the markets rallied from their intra-period lows, European financials, including Societe Generale, generally benefited from improving profit margins. Our Japanese financials names did not have the tailwind of sharply higher profits. Takefuji Corp., a Japanese consumer loan provider, was the largest absolute detractor from returns and was eliminated from the Fund on credit concerns and news that company would have to continue to increase its provisions to cover higher than expected refund trend claims from past loans. Additionally, stock selection in technology contributed to overall outperformance for the period, while weaker stock selection in consumer staples weighed on relative returns.
Current Strategy and Outlook: We believe that the markets will continue to be volatile as a recovery which is slower than past economic recoveries may no longer be greeted with enthusiasm. In this environment, we believe investors are advised to protect their portfolio from the threat of a loss of purchasing power (driven by inflation). We continue to believe that all investors should maintain a meaningful allocation in hard assets, gold and global equities especially in light of low nominal returns (and negative real returns) on cash equivalents and sovereign bonds. We remain attracted to reserve-rich resource companies that are trading at below what we perceive to be their intrinsic value as well as consumer staples companies in Europe and select technology names. We expect common stocks to be volatile and unsettling at times but should reward patient, long-term investors.
* | Effective June 15, 2009, Mr. Boardman and Mr. Crespo replaced Paul Hechmer as portfolio managers to the Fund. |
(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 October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Barrick Gold Corp. | 3.6 | % | ||
Novartis AG | 3.4 | % | ||
SK Telecom Co., Ltd. ADR | 3.1 | % | ||
Sanofi-Aventis | 2.9 | % | ||
Mabuchi Motor Co., Ltd. | 2.8 | % | ||
Coca-Cola West Holdings Co., Ltd. | 2.8 | % | ||
Royal Dutch Shell PLC ADR – Class B | 2.7 | % | ||
Nippon Telegraph & Telephone Corp. ADR | 2.7 | % | ||
Dai Nippon Printing Co., Ltd. | 2.7 | % | ||
Kinross Gold Corp. | 2.6 | % |
* | Excludes short-term investments related to ING Institutional Prime Money Market Fund – Class I. |
Portfolio holdings are subject to change daily.
32
Table of Contents
ING International Value Choice Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643590.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||
of Class A and B | of Class C | of Class I | of Class W | |||||||||||||||||
1 Year | February 1, 2005 | February 4, 2005 | December 21, 2005 | June 1, 2009 | ||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||
Class A(1) | 21.81 | % | 2.68 | % | — | — | — | |||||||||||||
Class B(2) | 23.13 | % | 2.81 | % | — | — | — | |||||||||||||
Class C(3) | 27.19 | % | — | 3.20 | % | — | — | |||||||||||||
Class I | 29.58 | % | — | — | 1.93 | % | — | |||||||||||||
Class W | — | — | — | — | 5.45 | % | ||||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||
Class A | 29.22 | % | 3.97 | % | — | — | — | |||||||||||||
Class B | 28.13 | % | 3.17 | % | — | — | — | |||||||||||||
Class C | 28.19 | % | — | 3.20 | % | — | — | |||||||||||||
Class I | 29.58 | % | — | — | 1.93 | % | — | |||||||||||||
Class W | — | — | — | — | 5.45 | % | ||||||||||||||
MSCI EAFE® Index(4) | 27.71 | % | 2.93 | % | 3.39 | %(5) | 0.33 | %(6) | 17.30 | % |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International Value Choice Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund Holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | 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. |
(5) | Since inception performance for index is shown from February 1, 2005. |
(6) | Since inception performance for index is shown from January 1, 2006. |
33
Table of Contents
ING Russia Fund
Portfolio Managers’ Report
Industry Allocation
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643516b.gif)
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 Angus Robertson, Portfolio Managers*, of ING Investment Management Advisors, B.V. — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 65.55% compared to the Russian Trading System (“RTS”) Index(1) and the MSCI Russia 10/40 Index(2),which returned 74.37% and 73.40%, respectively, for the same period.
Portfolio Specifics: Earlier this year Russian equities were priced for disaster, with many market participants expecting a collapse in the ruble and widespread corporate bankruptcies. As the global economic recovery has taken hold and markets have become unstuck, a number of global and local factors have worked together to push Russian equities up from their depressed levels. Historically low interest rates and large economic stimulus packages have created a global surge in liquidity. This has pushed risk appetite higher as investors seek out higher yielding assets. With the risk trade back on, those investors who had fled toward U.S. dollar assets during the crisis have moved the other way; this has weakened the dollar and supported risky assets such as commodities and emerging market currencies and equities. The Russian equity market, which is heavily reliant on commodities and perceived as a high-risk investment, has been benefiting from all these factors.
On top of the global environment, local factors that have played a role in the revaluation of Russian stocks include state support for various sectors, widespread corporate debt restructuring and falling interest rates made possible by decreasing inflationary pressures. In such an environment, the stocks that have performed the best have been those perceived as the most risky, among them a number of stocks that the market was previously pricing for bankruptcy.
The Fund has benefited from the recovery by holding a combination of large cap stocks, which have benefited from global money flowing into the Russian market; and smaller, riskier companies that had too much risk priced in. In terms of relative performance the Fund has benefited from its overweight in the small and mid cap space while it has suffered due to the underweight in the financials sector — Russian bank stocks were benefiting from global inflows while the Fund managers were not yet comfortable with the underlying fundamentals and maintained an underweight position in the sector.
The Fund’s best relative performance contributors at the stock level were LSR Group, Bank of St Petersburg, TMK Pipe and Magnit, while the worst detractors were VTB Bank and Sberbank.
Current Outlook and Strategy: After such a strong market performance and rebound in earnings expectations, we believe Russian valuation levels are no longer as attractive as they were earlier this year; however, we believe they remain attractive compared to their global emerging market peers and their peak levels of 2007 and 2008. If the environment of strong global liquidity and high appetite for risk persists, we believe it is likely that the Russian market will generally continue to outperform global emerging peers and developed markets. We are acutely aware, however, that any swing in the external environment is likely to put pressure on Russian equities. We therefore are closely monitoring the news flow on the global economic environment, inflation expectations and interest rates.
Besides the global or external angle, we believe the Fund is positioned to benefit from a number of domestic themes, including infrastructure spending, domestic consumption recovery, liberalizing of markets and increasing economic links with China. The Fund continues to underweight the energy sector (dominated by large cap, blue chip stocks) in favor of domestic sectors, particularly utilities, real estate and the consumer sectors. The Fund’s positioning in Russian banks is currently neutral.
* | Remco Vergeer was removed as a portfolio manager to the Fund effective May 1, 2009. |
(1) | The RTS Index is a capitalization-weighted index that is calculated in U.S. dollars. The index tracks the performance of Russia’s most active stocks traded on the RTS. The index is operated by the National Association of Participants in the Securities Markets, a non-profit body. |
(2) | The MSCI Russia 10/40 Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the Russian market taking into account the Undertakings for Collective Investment in Transferable Securities (UCITS III) directive which constrains the weight of any single group entity, as defined therein, at 10% of a fund’s total assets and the sum of the weights of all group entities representing more than 5% of the fund at 40% of the fund’s total assets. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds.
Top Ten Holdings*
as of October 31, 2009
(as a percent of net assets)
as of October 31, 2009
(as a percent of net assets)
Sberbank RF | 12.7 | % | ||
Lukoil-Spon ADR | 11.6 | % | ||
OAO Rosneft Oil Co. GDR | 8.3 | % | ||
MMC Norilsk Nickel ADR | 5.7 | % | ||
OAO Gazprom | 4.9 | % | ||
OAO Gazprom ADR | 3.9 | % | ||
Tatneft GDR | 3.4 | % | ||
Magnit OAO | 3.3 | % | ||
Surgutneftegaz ADR | 3.3 | % | ||
Polyus Gold Co. ZAO ADR | 2.8 | % |
* | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
34
Table of Contents
ING Russia Fund
Portfolio Managers’ Report
![GRAPH](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643591.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||
Since Inception | ||||||||||||||||
of Class I | ||||||||||||||||
1 Year | 5 Year | 10 Year | September 30, 2009 | |||||||||||||
Including Sales Charge: | ||||||||||||||||
Class A(1) | 56.04 | % | 14.43 | % | 28.90 | % | — | |||||||||
Class I | — | — | — | 4.49 | % | |||||||||||
Excluding Sales Charge: | ||||||||||||||||
Class A | 65.55 | %(2) | 15.80 | % | 29.67 | % | — | |||||||||
Class I | — | — | — | 4.49 | % | |||||||||||
RTS Index(3) | 74.37 | % | 15.23 | % | 29.98 | % | 7.49 | %(5) | ||||||||
MSCI Russia 10/40 IndexSM(4) | 73.40 | % | — | — | 3.87 | %(5) |
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Russia Fund against the indices indicated. An index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in an index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Redemptions on shares held less than 365 days are subject to a redemption fee of 2% of the redemption proceeds. |
(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. |
(4) | The MSCI Russia 10/40 IndexSM is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the Russian market taking into account the Undertakings for Collective Investment in Transferable Securities (UCITS III) directive which constrains the weight of any single group entity, as defined therein, at 10% of a fund’s total assets and the sum of the weights of all group entities representing more than 5% of the fund at 40% of the fund’s total assets. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. Index commenced operations on May 31, 2006. |
(5) | Since inception performance for index is shown from October 1, 2009. |
35
Table of Contents
ING Global Bond Fund
Portfolio Managers’ Report
Investment Type Allocation
as of October 31, 2009
(as a percent of net assets)
![](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643518b.gif)
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 Chris Diaz and Mike Mata, Portfolio Managers*, of ING Investment Management Co. — the Sub-Adviser.
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 24.43% compared to the Barclays Capital Global Aggregate Index(1) (the “Index”), which returned 18.41% for the same period.
Portfolio Specifics: Capital markets swung from abject fear to a rebound in risk appetites over the year ended October 31, 2009. Massive doses of stimulus, low short-term lending rates and quantitative easing were hallmarks of policy responses to the global banking crisis of 2008. Emerging economies outpaced the developed world. In response, investors eventually left the “safe haven” of U.S. Treasury debt and embraced riskier assets. Domestic inflation remained muted. Despite the ultimate sell-off in Treasuries, the Barclays Capital Global Aggregate Bond Index returned 18.41% for the period.
Risk-based fixed income assets posted strong, positive excess returns(2). Corporate bonds, in general, posted 20.50% of excess returns, but utilities led the pack with 25.86% of return above comparable duration Treasuries. Generally, lower rated corporate bonds outperformed higher credit quality issuers, as did bonds with longer maturities. Commercial mortgage-backed securities (“CMBS”) earned 27.85% of excess return as asset-backed securities (“ABS”) posted 24.24%.
As fear abated, the U.S. dollar (“USD”) resumed its slide after a buoyant fourth quarter 2008 and as a result of international risk aversion. With U.S. interest rates among the lowest in the world, the USD became the funding currency of choice for investors, as they borrow in USD and invest in higher-yielding currencies or assets.
While the sources of outperformance varied over time in a volatile market, our tactical management of currency exposures dominated. Initially we were long the USD in the waning days of 2008 but quickly moved to a number of non-dollar exposures as 2009 unfolded. Key themes that benefited the Fund included overweights to commodities based currencies, emerging markets currencies, and Scandinavian currencies. In particular, overweights to Australia, New Zealand, Canada, Brazil and Mexico helped as commodities recovered from depressed levels during the period.
Adding to results was a timely call on credit. The Fund had been significantly underweight corporate bonds as they underperformed Treasuries. We began adding to credit exposure in November of 2008. This helped results as corporate bonds outperformed Treasuries significantly. Ultimately, we added exposures to non-agency residential mortgage-backed securities (“RMBS”), emerging market debt and high yield bonds. All of these additions helped performance but we could have been earlier on our allocations. We underweighted agency debentures and agency RMBS to “fund” our overweights in the riskier sectors; this call was correct as we were very happy to underweight two modestly winning sectors in order to increase the overweight to an even stronger sector.
During the first quarter of 2009, we anticipated quantitative easing and added interest rate exposure in the UK and Germany. Although the benefits (and exposures) of duration and yield curve management varied over time, these positions helped on an annual basis although they may have provided interim drag during specific quarters.
Current Strategy and Outlook: Our key themes for the second half of 2009 are for range-bound U.S. Treasury rates and little likelihood of Federal Reserve tightening, because of expected high, continuing unemployment and significant slack in the domestic economy — despite growing evidence of bottoming in the major global economies. Although concerns about inflation may resurface, we believe that it will not be a problem for the near term.
Housing prices have slowed their rate of descent, and we believe consumer confidence is turning up. Although our macro outlook is for a modest and drawn-out recovery, we are mindful of the increasing number of upside surprises both in the United States and abroad. We believe that the brighter news on residential real estate prices remains key to the pace and direction of the economic recovery. We note, however, that the last quarter of 2009 may witness a small pause in the nascent housing price recovery.
We are maintaining our active risk to high-quality emerging markets, specifically expressed in Brazil, with emphasis on the high yields available in short-dated bonds. Allocations to the currencies of India and Indonesia follow our positive theme that emerging economies that have high savings rates may benefit from rising internal consumption and a rebound in exports. We believe that although the USD may benefit from a late year risk hiccup, we expect it to remain weak for some time.
* | Effective January 13, 2009, James Kauffmann was replaced by Chris Diaz and Mike Mata as portfolio managers to the Fund. |
(1) | The Barclays Capital Global Aggregate Index provides a broad-based measure of the global investment-grade fixed-rate debt markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. |
(2) | For fixed income asset classes, excess return is defined as the return of an asset class over a U.S. Treasury security of comparable duration. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Top Ten Holdings
as of October 31, 2009
(as a percent of net assets)
Brazil Notas do Tesouro Nacional Series F, 10.000%, due 01/01/12 | 15.1 | % | ||
U.S. Treasury Note, 2.375%, due 09/30/14 | 5.7 | % | ||
Japan Government Two Year Bond, 0.400%, due 03/15/11 | 3.0 | % | ||
U.S. Treasury Note, 1.375%, due 10/15/12 | 2.8 | % | ||
Bundesrepublik Deutschland, 3.750%, due 01/04/19 | 2.6 | % | ||
Bundesrepublik Deutschland, 4.250%, due 07/04/39 | 2.3 | % | ||
Japan Government Ten Year Bond, 1.400%, due 12/20/11 | 1.9 | % | ||
Bundesrepublik Deutschland, 4.250%, due 01/04/14 | 1.8 | % | ||
Deutsche Bank AG, 13.150%, due 01/25/12 | 1.7 | % | ||
U.S. Treasury Note, 4.250%, due 05/15/39 | 1.7 | % |
Portfolio holdings are subject to change daily.
36
Table of Contents
ING Global Bond Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643593.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||
Since Inception | Since Inception | Since Inception | ||||||||||||||
of Class A, B, C and I | of Class O | of Class W | ||||||||||||||
1 Year | June 30, 2006 | June 4, 2008 | June 1, 2009 | |||||||||||||
Including Sales Charge: | ||||||||||||||||
Class A(1) | 21.33 | % | 10.13 | % | — | — | ||||||||||
Class B(2) | 18.56 | % | 10.19 | % | — | — | ||||||||||
Class C(3) | 22.48 | % | 10.94 | % | — | — | ||||||||||
Class I | 24.94 | % | 12.24 | % | — | — | ||||||||||
Class O | 24.26 | % | — | 13.59 | % | — | ||||||||||
Class W | — | — | — | 10.54 | % | |||||||||||
Excluding Sales Charge: | ||||||||||||||||
Class A | 24.43 | % | 11.75 | % | — | — | ||||||||||
Class B | 23.56 | % | 10.91 | % | — | — | ||||||||||
Class C | 23.48 | % | 10.94 | % | — | — | ||||||||||
Class I | 24.94 | % | 12.24 | % | — | — | ||||||||||
Class O | 24.26 | % | — | 13.59 | % | — | ||||||||||
Class W | — | — | — | 10.54 | % | |||||||||||
Barclays Capital Global Aggregate Bond Index(4) | 18.41 | % | 8.09 | %(5) | 6.80 | %(6) | 7.17 | % |
Based on a $10,000 initial investment, the table and graph above illustrate the total return of ING Global Bond Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund shares.
The performance shown may include the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, and the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Effective July 31, 2006, the maximum Class A sales charge was lowered to 2.50% Return calculations with a starting date prior to July 31, 2006 are based on a 4.75% sales charge, while returns with a starting date on or after July 31, 2006 are based on a 2.50% sales charge. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The Barclays Capital Global Aggregate Bond 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. |
(5) | Since inception performance for the index is shown from July 1, 2006. |
(6) | Since inception performance for the index is shown from June 1, 2008. |
37
Table of Contents
ING Diversified International Fund
Portfolio Managers’ Report
Asset Allocation
as of October 31, 2009
(as a percent of net assets)
ING Foreign Fund – Class I | 24.9 | % | |||
ING International Capital Appreciation Fund – Class I | 22.6 | % | |||
ING International SmallCap Multi-Manager Fund – Class I | 11.7 | % | |||
ING International Value Fund – Class I | 9.9 | % | |||
ING International Value Choice Fund – Class I | 9.8 | % | |||
ING Emerging Countries Fund – Class I | 8.0 | % | |||
ING Index Plus International Equity Fund – Class I | 8.0 | % | |||
ING International Real Estate Fund – Class I | 5.1 | % | |||
Other Assets and Liabilities – Net | 0.0 | % | |||
Net Assets | 100.0 | % |
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 Asset Allocation Committee.(1)
Performance: For the year ended October 31, 2009, the Fund’s Class A shares, excluding sales charges, provided a total return of 28.22% compared to the MSCI All Country World Indexsm (ex-US)(2) (“MSCI ACWI (ex-US)”) which returned 34.10% for the same period.
Portfolio Specifics: The one-year period began while all the major developed economies were in recessionary territory, with slow growth and poorly performing equity markets. Global industrial production fell dramatically and fears of deflation arose. Governments and policy makers met this situation with unprecedented global monetary and fiscal support, which ultimately proved to be major catalysts for stabilization. The stock markets turned around in the spring, with many economic indicators picking up. The second half of the period saw double-digit returns, low interest rates and improving sentiment. Despite the rough start, all the major asset classes finished the period with extraordinary gains, ranging from a low of 24.09% for the MSCI Europe Australasia and Far East® Growth (“MSCI EAFE Growth”) Index, to 64.63% for the MSCI Emerging Markets® Index.
The Fund’s underperformance relative to its benchmark was a result of the performance of the Underlying Funds. Positive relative results came from ING International Capital Appreciation Fund and marginally from ING Index Plus International Equity Fund. However, those contributions were not enough to offset the negative relative results from ING Foreign Fund, which was the greatest detractor for the period. Additionally, ING Emerging Countries Fund, ING International Value Fund, ING International Small Cap Multi-Manager Fund and ING International Value Choice Fund underperformed their strategic benchmarks for the period and detracted from relative results.
ING International Capital Appreciation Fund’s positive relative results for the period were due to strong stock selection across regions. Europe, Emerging Markets and Asia Pacific ex-Japan were the largest contributors to relative performance, primarily due to security selection. An underweight position Japan relative to the benchmark also contributed to relative performance.
The greatest detractors from relative performance were ING Foreign Fund, ING Emerging Countries Fund and ING International Real Estate Fund. ING Foreign Fund’s defensive positioning, which was initially supportive to relative results, led to the underperformance. The Fund’s underweights to Latin America (notably Brazil) and emerging Asia negatively impacted performance. Stock selection had a negative impact in most sectors, especially financials. ING Emerging Countries Fund lagged its benchmark because of a conservative sector allocation and significant cash balance after emerging markets rebounded sharply in early March and because of stock selection, which on balance detracted from results for the reporting period. ING International Real Estate Fund lagged its benchmark as the result of poor stock selection in the Asia-Pacific region, primarily in Japan, Singapore, Australia and Hong Kong. An underweight to the outperforming Asia-Pacific region more than offset the slight contribution of favorable country selection in Europe.
We made two tactical moves during the period. The first move, made in late March, was to reverse the underweight to small cap and corresponding overweight to large cap core, moving into a neutral position. In mid June, with a more sanguine forecast for global economies, we moved to overweight emerging markets. This was funded by a decrease in large cap core. Our view was that emerging markets were positioned for the strongest rebound in a gradual healing of the global economy. In concert with these asset allocation moves, we also implemented changes of Underlying Funds. ING International Value Fund was added to the Fund in August and ING International Equity Dividend Fund was removed in October.
Current Strategy and Outlook: Looking forward, we believe the global economic outlook has improved, and growth in the major developed economies is expected to resume in the second half of 2009 and into 2010. We do expect, however, the recovery to be relatively weak as consumption in the developed economies faces a secular headwind.
The Fund’s approximate target investment allocations among the asset classes in which the Fund invests are set out in the table. As these are target allocations, the actual allocations of the Fund’s assets may deviate from the percentages shown.
The investment committee allocates the Fund’s assets among the Underlying Funds based on advice from ING Investment Management Co., a consultant to the committee. The performance of the Fund reflects the performance of the Underlying Funds in which it invests and the weightings of Fund’s assets in each Underlying Fund.
There is a risk that the Fund may allocate assets to an Underlying Fund or market that underperforms other asset classes. For example, the Fund may be underweighted in assets or a market that is experiencing significant returns or over-weighted in assets or a market with significant declines.
(1) | The members of the Asset Allocation Committee are: William A. Evans, Paul Zemsky and Heather Hackett. |
(2) | The MSCI ACWI (ex-US)sm measures the returns of equities of companies which are domiciled outside the U.S. It includes the reinvestment of dividends and distributions net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
Target Allocations
as of October 31, 2009
(as a percent of net assets)
International Core | 30.0 | % | ||
International Growth | 17.5 | % | ||
International Value | 17.5 | % | ||
International Small Cap | 10.0 | % | ||
Emerging Markets | 20.0 | % | ||
Real Estate | 5.0 | % |
Portfolio holdings are subject to change daily.
38
Table of Contents
ING Diversified International Fund
Portfolio Managers’ Report
![(GRAPH)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp1643594.gif)
Average Annual Total Returns for the Periods Ended October 31, 2009 | ||||||||||||||||||||
Since Inception | Since Inception | Since Inception | Since Inception | |||||||||||||||||
of Class A, B, C and I | of Class O | of Class R | of Class W | |||||||||||||||||
1 Year | December 21, 2005 | June 4, 2008 | December 12, 2006 | February 12, 2008 | ||||||||||||||||
Including Sales Charge: | ||||||||||||||||||||
Class A(1) | 20.77 | % | (2.44) | % | — | — | — | |||||||||||||
Class B(2) | 22.46 | % | (2.31) | % | — | — | — | |||||||||||||
Class C(3) | 26.32 | % | (1.67) | % | — | — | — | |||||||||||||
Class I | 28.78 | % | (0.74) | % | — | — | — | |||||||||||||
Class O | 28.45 | % | — | (20.74) | % | — | — | |||||||||||||
Class R | 28.13 | % | — | (8.21) | % | |||||||||||||||
Class W | 28.84 | % | — | — | — | (14.00) | % | |||||||||||||
Excluding Sales Charge: | ||||||||||||||||||||
Class A | 28.22 | % | (0.93) | % | — | — | — | |||||||||||||
Class B | 27.46 | % | (1.64) | % | — | — | — | |||||||||||||
Class C | 27.32 | % | (1.67) | % | — | — | — | |||||||||||||
Class I | 28.78 | % | (0.74) | % | — | — | — | |||||||||||||
Class O | 28.45 | % | — | (20.74) | % | — | — | |||||||||||||
Class R | 28.13 | % | — | — | (8.21) | % | — | |||||||||||||
Class W | 28.84 | % | — | — | — | (14.00) | % | |||||||||||||
MSCI ACWI (ex-US)SM(4) | 34.10 | % | 2.12 | %(5) | (18.42) | %(6) | (4.20) | %(7) | (11.20) | %(8) |
Based on a $10,000 initial investment, the table and graph above illustrate the total return of ING Diversified International Fund against the index indicated. The index is unmanaged and has no cash in its portfolio, imposes no sales charge and incurs no operating expenses. An investor cannot invest directly in the index. The Fund’s performance is shown both with and without the imposition of sales charges.
The graph and performance table do not reflect the deduction of taxes that a shareholder will pay on Fund distributions or the redemption of Fund Shares.
The performance shown may include the effect of the waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total return. Had all fees and expenses been considered, the total returns would have been lower.
Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.ingfunds.com or call (800) 992-0180 to get performance through the most recent month end.
It is important to note that the Fund has a limited operating history. Performance over a longer period of time may be more meaningful than short-term performance.
This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements.
The views expressed in this report reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Fund holdings are subject to change daily.
(1) | Reflects deduction of the maximum Class A sales charge of 5.75%. |
(2) | Reflects deduction of the Class B deferred sales charge of 5% and 3%, respectively, for the 1 year and since inception returns. |
(3) | Reflects deduction of the Class C deferred sales charge of 1% for the 1 year return. |
(4) | The MSCI ACWI (ex-US)sm measures the returns of equities of companies which are domiciled outside the U.S. It includes the reinvestment of dividends and distributions net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing. |
(5) | Since inception performance of the index is shown from January 1, 2006. |
(6) | Since inception performance of the index is shown from June 1, 2008. |
(7) | Since inception performance of the index is shown from December 1, 2006. |
(8) | Since inception performance of the index is shown from February 1, 2008. |
39
Table of Contents
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 May 1, 2009 to October 31, 2009. 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 below, “Actual Fund Return,” provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the table shown below, “Hypothetical (5% return before expenses),” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the hypothetical lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Actual Fund Return | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||
Beginning | Ending | Expenses Paid | Beginning | Ending | Expenses Paid | |||||||||||||||||||||||||||
Account | Account | During the | Account | Account | During the | |||||||||||||||||||||||||||
Value | Value | Annualized | Period Ended | Value | Value | Annualized | Period Ended | |||||||||||||||||||||||||
May 1, | October 31, | Expense | October 31, | May 1, | October 31, | Expense | October 31, | |||||||||||||||||||||||||
2009 | 2009 | Ratio | 2009* | 2009 | 2009 | Ratio | 2009* | |||||||||||||||||||||||||
ING Global Equity Dividend Fund | ||||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,254.30 | 1.40 | % | $ | 7.95 | $ | 1,000.00 | $ | 1,018.15 | 1.40 | % | $ | 7.12 | ||||||||||||||||
Class B | 1,000.00 | 1,249.10 | 2.15 | 12.19 | 1,000.00 | 1,014.37 | 2.15 | 10.92 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,249.80 | 2.15 | 12.19 | 1,000.00 | 1,014.37 | 2.15 | 10.92 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,257.20 | 0.93 | 5.29 | 1,000.00 | 1,020.52 | 0.93 | 4.74 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,254.40 | 1.40 | 7.96 | 1,000.00 | 1,018.15 | 1.40 | 7.12 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,255.90 | 0.93 | 5.29 | 1,000.00 | 1,020.52 | 0.93 | 4.74 | ||||||||||||||||||||||||
ING Global Natural Resources Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,269.50 | 1.64 | 9.38 | 1,000.00 | 1,016.94 | 1.64 | 8.34 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,273.20 | 1.19 | 6.82 | 1,000.00 | 1,019.21 | 1.19 | 6.06 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,272.30 | 1.19 | 6.82 | 1,000.00 | 1,019.21 | 1.19 | 6.06 |
* | Expenses are equal to each Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
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Table of Contents
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
Actual Fund Return | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||
Beginning | Ending | Expenses Paid | Beginning | Ending | Expenses Paid | |||||||||||||||||||||||||||
Account | Account | During the | Account | Account | During the | |||||||||||||||||||||||||||
Value | Value | Annualized | Period Ended | Value | Value | Annualized | Period Ended | |||||||||||||||||||||||||
May 1, | October 31, | Expense | October 31, | May 1, | October 31, | Expense | October 31, | |||||||||||||||||||||||||
2009 | 2009 | Ratio | 2009* | 2009 | 2009 | Ratio | 2009* | |||||||||||||||||||||||||
ING Global Real Estate Fund | ||||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,358.10 | 1.49 | % | $ | 8.86 | $ | 1,000.00 | $ | 1,017.69 | 1.49 | % | $ | 7.58 | ||||||||||||||||
Class B | 1,000.00 | 1,352.90 | 2.24 | 13.28 | 1,000.00 | 1,013.91 | 2.24 | 11.37 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,352.30 | 2.24 | 13.28 | 1,000.00 | 1,013.91 | 2.24 | 11.37 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,360.50 | 1.12 | 6.66 | 1,000.00 | 1,019.56 | 1.12 | 5.70 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,358.00 | 1.49 | 8.86 | 1,000.00 | 1,017.69 | 1.49 | 7.58 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,359.80 | 1.12 | 6.66 | 1,000.00 | 1,019.56 | 1.12 | 5.70 | ||||||||||||||||||||||||
ING Global Value Choice Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,295.70 | 1.50 | 8.68 | 1,000.00 | 1,017.64 | 1.50 | 7.63 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,290.90 | 2.25 | 12.99 | 1,000.00 | 1,013.86 | 2.25 | 11.42 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,291.10 | 2.25 | 12.99 | 1,000.00 | 1,013.86 | 2.25 | 11.42 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,297.70 | 1.17 | 6.78 | 1,000.00 | 1,019.31 | 1.17 | 5.96 | ||||||||||||||||||||||||
Class Q | 1,000.00 | 1,296.10 | 1.42 | 8.22 | 1,000.00 | 1,018.05 | 1.42 | 7.22 | ||||||||||||||||||||||||
Class W(1) | 1,000.00 | 1,091.60 | 1.17 | 5.13 | 1,000.00 | 1,019.31 | 1.17 | 5.96 | ||||||||||||||||||||||||
ING Asia-Pacific Real Estate Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,417.60 | 1.77 | 10.79 | 1,000.00 | 1,016.28 | 1.77 | 9.00 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,412.60 | 2.52 | 15.32 | 1,000.00 | 1,012.50 | 2.52 | 12.78 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,409.50 | 2.52 | 15.30 | 1,000.00 | 1,012.50 | 2.52 | 12.78 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,420.30 | 1.51 | 9.21 | 1,000.00 | 1,017.59 | 1.51 | 7.68 | ||||||||||||||||||||||||
ING Emerging Countries Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,352.40 | 2.04 | 12.10 | 1,000.00 | 1,014.92 | 2.04 | 10.36 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,347.70 | 2.79 | 16.51 | 1,000.00 | 1,011.14 | 2.79 | 14.14 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,347.00 | 2.79 | 16.50 | 1,000.00 | 1,011.14 | 2.79 | 14.14 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,355.90 | 1.60 | 9.50 | 1,000.00 | 1,017.14 | 1.60 | 8.13 | ||||||||||||||||||||||||
Class Q | 1,000.00 | 1,354.10 | 1.85 | 10.98 | 1,000.00 | 1,015.88 | 1.85 | 9.40 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,355.00 | 1.60 | 9.50 | 1,000.00 | 1,017.14 | 1.60 | 8.13 | ||||||||||||||||||||||||
ING European Real Estate Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,507.60 | 1.75 | 11.06 | 1,000.00 | 1,016.38 | 1.75 | 8.89 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,503.50 | 2.50 | 15.78 | 1,000.00 | 1,012.60 | 2.50 | 12.68 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,500.30 | 2.50 | 15.76 | 1,000.00 | 1,012.60 | 2.50 | 12.68 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,507.00 | 1.40 | 8.85 | 1,000.00 | 1,018.15 | 1.40 | 7.12 | ||||||||||||||||||||||||
ING Foreign Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,248.40 | 1.70 | 9.63 | 1,000.00 | 1,016.64 | 1.70 | 8.64 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,243.90 | 2.45 | 13.86 | 1,000.00 | 1,012.85 | 2.45 | 12.43 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,242.70 | 2.45 | 13.85 | 1,000.00 | 1,012.85 | 2.45 | 12.43 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,250.40 | 1.31 | 7.43 | 1,000.00 | 1,018.60 | 1.31 | 6.67 | ||||||||||||||||||||||||
Class Q | 1,000.00 | 1,248.20 | 1.56 | 8.84 | 1,000.00 | 1,017.34 | 1.56 | 7.93 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,250.30 | 1.31 | 7.43 | 1,000.00 | 1,018.60 | 1.31 | 6.67 | ||||||||||||||||||||||||
ING Greater China Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,288.80 | 2.11 | 12.17 | 1,000.00 | 1,014.57 | 2.11 | 10.71 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,283.90 | 2.86 | 16.46 | 1,000.00 | 1,010.79 | 2.86 | 14.50 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,284.00 | 2.86 | 16.46 | 1,000.00 | 1,010.79 | 2.86 | 14.50 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,292.70 | 1.68 | 9.71 | 1,000.00 | 1,016.74 | 1.68 | 8.54 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,288.80 | 2.11 | 12.17 | 1,000.00 | 1,014.57 | 2.11 | 10.71 |
* | Expenses are equal to each Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
(1) | Commencement of operations was June 1, 2009. Expenses paid for the Actual Fund Return reflect the 153-day period ended October 31, 2009. |
41
Table of Contents
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
Actual Fund Return | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||
Beginning | Ending | Expenses Paid | Beginning | Ending | Expenses Paid | |||||||||||||||||||||||||||
Account | Account | During the | Account | Account | During the | |||||||||||||||||||||||||||
Value | Value | Annualized | Period Ended | Value | Value | Annualized | Period Ended | |||||||||||||||||||||||||
May 1, | October 31, | Expense | October 31, | May 1, | October 31, | Expense | October 31, | |||||||||||||||||||||||||
2009 | 2009 | Ratio | 2009* | 2009 | 2009 | Ratio | 2009* | |||||||||||||||||||||||||
ING Index Plus International Equity Fund | ||||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,319.80 | 1.15 | % | $ | 6.72 | $ | 1,000.00 | $ | 1,019.41 | 1.15 | % | $ | 5.85 | ||||||||||||||||
Class B | 1,000.00 | 1,315.30 | 1.90 | 11.09 | 1,000.00 | 1,015.63 | 1.90 | 9.65 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,315.80 | 1.90 | 11.09 | 1,000.00 | 1,015.63 | 1.90 | 9.65 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,321.50 | 0.90 | 5.27 | 1,000.00 | 1,020.67 | 0.90 | 4.58 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,320.30 | 1.15 | 6.73 | 1,000.00 | 1,019.41 | 1.15 | 5.85 | ||||||||||||||||||||||||
ING International Capital Appreciation Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,303.10 | 1.51 | 8.77 | 1,000.00 | 1,017.59 | 1.51 | 7.68 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,299.70 | 2.26 | 13.10 | 1,000.00 | 1,013.81 | 2.26 | 11.47 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,298.90 | 2.26 | 13.10 | 1,000.00 | 1,013.81 | 2.26 | 11.47 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,306.80 | 1.14 | 6.63 | 1,000.00 | 1,019.46 | 1.14 | 5.80 | ||||||||||||||||||||||||
Class Q(1) | 1,000.00 | 1,051.20 | 1.39 | 3.36 | 1,000.00 | 1,018.20 | 1.39 | 7.07 | ||||||||||||||||||||||||
ING International Real Estate Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,406.60 | 1.53 | 9.28 | 1,000.00 | 1,017.49 | 1.53 | 7.78 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,402.20 | 2.28 | 13.81 | 1,000.00 | 1,013.71 | 2.28 | 11.57 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,402.10 | 2.28 | 13.80 | 1,000.00 | 1,013.71 | 2.28 | 11.57 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,409.90 | 1.23 | 7.47 | 1,000.00 | 1,019.00 | 1.23 | 6.26 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,413.20 | 1.23 | 7.48 | 1,000.00 | 1,019.00 | 1.23 | 6.26 | ||||||||||||||||||||||||
ING International SmallCap Multi-Manager Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,389.10 | 1.95 | 11.74 | 1,000.00 | 1,015.38 | 1.95 | 9.91 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,384.60 | 2.60 | 15.63 | 1,000.00 | 1,012.10 | 2.60 | 13.19 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,384.70 | 2.60 | 15.63 | 1,000.00 | 1,012.10 | 2.60 | 13.19 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,393.30 | 1.45 | 8.75 | 1,000.00 | 1,017.90 | 1.45 | 7.37 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,390.80 | 1.85 | 11.15 | 1,000.00 | 1,015.88 | 1.85 | 9.40 | ||||||||||||||||||||||||
Class Q | 1,000.00 | 1,390.70 | 1.70 | 10.24 | 1,000.00 | 1,016.64 | 1.70 | 8.64 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,393.10 | 1.45 | 8.75 | 1,000.00 | 1,017.90 | 1.45 | 7.37 | ||||||||||||||||||||||||
ING International Value Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,233.60 | 1.75 | 9.85 | 1,000.00 | 1,016.38 | 1.75 | 8.89 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,230.90 | 2.45 | 13.78 | 1,000.00 | 1,012.85 | 2.45 | 12.43 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,230.30 | 2.40 | 13.49 | 1,000.00 | 1,013.11 | 2.40 | 12.18 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,237.70 | 1.33 | 7.50 | 1,000.00 | 1,018.50 | 1.33 | 6.77 | ||||||||||||||||||||||||
Class Q | 1,000.00 | 1,237.20 | 1.33 | 7.50 | 1,000.00 | 1,018.50 | 1.33 | 6.77 | ||||||||||||||||||||||||
Class W(2) | 1,000.00 | 1,084.50 | 1.33 | 3.95 | 1,000.00 | 1,018.50 | 1.33 | 6.77 | ||||||||||||||||||||||||
ING International Value Choice Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,201.00 | 1.70 | 9.43 | 1,000.00 | 1,016.64 | 1.70 | 8.64 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,195.70 | 2.45 | 13.56 | 1,000.00 | 1,012.85 | 2.45 | 12.43 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,195.00 | 2.45 | 13.55 | 1,000.00 | 1,012.85 | 2.45 | 12.43 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,201.20 | 1.39 | 7.71 | 1,000.00 | 1,018.20 | 1.39 | 7.07 | ||||||||||||||||||||||||
Class W(3) | 1,000.00 | 1,054.50 | 1.39 | 5.99 | 1,000.00 | 1,018.20 | 1.39 | 7.07 |
* | Expenses are equal to each Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
(1) | Commencement of operations was August 7, 2009. Expenses paid for the Actual Fund Return reflect the 86-day period ended October 31, 2009. |
(2) | Commencement of operations was July 20, 2009. Expenses paid for the Actual Fund Return reflect the 104-day period ended October 31, 2009. |
(3) | Commencement of operations was June 1, 2009. Expenses paid for the Actual Fund Return reflect the 153-day period ended October 31, 2009. |
42
Table of Contents
SHAREHOLDER EXPENSE EXAMPLES (Unaudited) (continued)
Actual Fund Return | Hypothetical (5% return before expenses) | |||||||||||||||||||||||||||||||
Beginning | Ending | Expenses Paid | Beginning | Ending | Expenses Paid | |||||||||||||||||||||||||||
Account | Account | During the | Account | Account | During the | |||||||||||||||||||||||||||
Value | Value | Annualized | Period Ended | Value | Value | Annualized | Period Ended | |||||||||||||||||||||||||
May 1, | October 31, | Expense | October 31, | May 1, | October 31, | Expense | October 31, | |||||||||||||||||||||||||
2009 | 2009 | Ratio | 2009* | 2009 | 2009 | Ratio | 2009* | |||||||||||||||||||||||||
ING Russia Fund | ||||||||||||||||||||||||||||||||
Class A | $ | 1,000.00 | $ | 1,608.40 | 2.21 | % | $ | 14.53 | $ | 1,000.00 | $ | 1,014.06 | 2.21 | % | $ | 11.22 | ||||||||||||||||
Class I(1) | 1,000.00 | 1,044.90 | 1.68 | 1.51 | 1,000.00 | 1,016.74 | 1.68 | 8.54 | ||||||||||||||||||||||||
ING Global Bond Fund | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,140.80 | 0.91 | % | 4.91 | 1,000.00 | 1,020.62 | 0.91 | % | 4.63 | ||||||||||||||||||||||
Class B | 1,000.00 | 1,137.10 | 1.66 | 8.94 | 1,000.00 | 1,016.84 | 1.66 | 8.44 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,136.70 | 1.66 | 8.94 | 1,000.00 | 1,016.84 | 1.66 | 8.44 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,142.90 | 0.56 | 3.02 | 1,000.00 | 1,022.38 | 0.56 | 2.85 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,140.20 | 0.91 | 4.91 | 1,000.00 | 1,020.62 | 0.91 | 4.63 | ||||||||||||||||||||||||
Class W(2) | 1,000.00 | 1,105.40 | 0.56 | 2.47 | 1,000.00 | 1,022.38 | 0.56 | 2.85 | ||||||||||||||||||||||||
ING Diversified International Fund** | ||||||||||||||||||||||||||||||||
Class A | 1,000.00 | 1,294.20 | 0.38 | 2.20 | 1,000.00 | 1,023.29 | 0.38 | 1.94 | ||||||||||||||||||||||||
Class B | 1,000.00 | 1,290.00 | 1.13 | 6.52 | 1,000.00 | 1,019.51 | 1.13 | 5.75 | ||||||||||||||||||||||||
Class C | 1,000.00 | 1,288.90 | 1.13 | 6.52 | 1,000.00 | 1,019.51 | 1.13 | 5.75 | ||||||||||||||||||||||||
Class I | 1,000.00 | 1,294.70 | 0.10 | 0.58 | 1,000.00 | 1,024.70 | 0.10 | 0.51 | ||||||||||||||||||||||||
Class O | 1,000.00 | 1,295.60 | 0.38 | 2.20 | 1,000.00 | 1,023.29 | 0.38 | 1.94 | ||||||||||||||||||||||||
Class R | 1,000.00 | 1,292.30 | 0.63 | 3.64 | 1,000.00 | 1,022.03 | 0.63 | 3.21 | ||||||||||||||||||||||||
Class W | 1,000.00 | 1,295.10 | 0.10 | 0.58 | 1,000.00 | 1,024.70 | 0.10 | 0.51 |
* | Expenses are equal to each Fund’s respective annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
** | The annualized expense ratios do not include expenses of underlying funds. |
(1) | Commencement of operations was September 30, 2009. Expenses paid for the Actual Fund Return reflect the 32-day period ended October 31, 2009. |
(2) | Commencement of operations was June 1, 2009. Expenses paid for the Actual Fund Return reflect the 153-day period ended October 31, 2009. |
43
Table of Contents
The Shareholders and Board of Trustees
ING Mutual Funds and ING Mayflower Trust
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of ING Global Equity Dividend Fund, ING Global Natural Resources Fund, ING Global Real Estate Fund, ING Global Value Choice Fund, ING Asia-Pacific Real Estate Fund, ING Emerging Countries Fund, ING European Real Estate Fund, ING Foreign Fund, ING Greater China Fund, ING Index Plus International Equity Fund, ING International Capital Appreciation Fund, ING International Real Estate Fund, ING International SmallCap Multi-Manager Fund, ING International Value Choice Fund, ING Russia Fund, ING Global Bond Fund, and ING Diversified International Fund, each a series of ING Mutual Funds, and ING International Value Fund, a series of ING Mayflower Trust, as of October 31, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2009, by correspondence with the custodian, transfer agent, and brokers, or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the aforementioned funds as of October 31, 2009, and the results of their operations, the changes in their net assets, and the financial highlights for the periods specified in the first paragraph above, in conformity with U.S. generally accepted accounting principles.
![(KPMG LLP)](https://capedge.com/proxy/N-CSR/0000950123-10-000632/p16435bp16435s2.gif)
Boston, Massachusetts
December 22, 2009
44
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009
ING | ING | ING | ING | |||||||||||||
Global | Global | Global | Global | |||||||||||||
Equity | Natural | Real | Value | |||||||||||||
Dividend | Resources | Estate | Choice | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in securities at value+* | $ | 133,784,886 | $ | 99,542,008 | $ | 1,596,174,745 | $ | 155,063,237 | ||||||||
Investments in affiliates** | — | — | 8,639,456 | — | ||||||||||||
Short-term investments at value*** | 302,120 | — | 23,538,253 | 3,860,218 | ||||||||||||
Short-term investments in affiliates**** | — | 1,006,000 | 60,713,731 | 21,411,118 | ||||||||||||
Cash | 4,729,598 | 431 | — | 45 | ||||||||||||
Foreign currencies at value***** | 738,173 | 10,643 | 317,004 | 332,661 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 1,297,057 | 383,314 | 33,919,640 | 319,700 | ||||||||||||
Fund shares sold | 285,008 | 204,140 | 15,572,853 | 1,933,145 | ||||||||||||
Dividends and interest | 409,776 | 71,158 | 4,155,554 | 256,091 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | 8,821 | ||||||||||||
Prepaid expenses | 29,231 | 11,543 | 70,344 | 21,416 | ||||||||||||
Reimbursement due from manager | 701 | — | — | — | ||||||||||||
Total assets | 141,576,550 | 101,229,237 | 1,743,101,580 | 183,206,452 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Payable for investment securities purchased | 1,485,418 | 513,866 | 23,988,754 | 2,277,768 | ||||||||||||
Payable for fund shares redeemed | 615,745 | 115,057 | 3,637,161 | 505,828 | ||||||||||||
Payable upon receipt of securities loaned | 326,900 | — | 24,087,317 | 3,917,772 | ||||||||||||
Payable to affiliates | 176,888 | 108,108 | 1,530,915 | 230,115 | ||||||||||||
Payable for directors fees | 5,882 | 13,510 | 18,622 | 13,667 | ||||||||||||
Other accrued expenses and liabilities | 195,331 | 108,120 | 1,332,831 | 90,848 | ||||||||||||
Total liabilities | 2,806,164 | 858,661 | 54,595,600 | 7,035,998 | ||||||||||||
NET ASSETS | $ | 138,770,386 | $ | 100,370,576 | $ | 1,688,505,980 | $ | 176,170,454 | ||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||
Paid-in capital | $ | 237,884,996 | $ | 119,828,706 | $ | 2,288,958,998 | $ | 250,493,874 | ||||||||
Undistributed net investment income/(distributions in excess of net investment income) | 11,181 | 94,442 | (5,402,287 | ) | 1,036,069 | |||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (104,297,566 | ) | (26,813,358 | ) | (756,362,653 | ) | (100,703,282 | ) | ||||||||
Net unrealized appreciation on investments and foreign currency related transactions | 5,171,775 | 7,260,786 | 161,311,922 | 25,343,793 | ||||||||||||
NET ASSETS | $ | 138,770,386 | $ | 100,370,576 | $ | 1,688,505,980 | $ | 176,170,454 | ||||||||
+ Including securities loaned at value | $ | 301,908 | $ | — | $ | 22,514,050 | $ | 3,263,771 | ||||||||
* Cost of investments in securities | $ | 128,574,634 | $ | 92,281,118 | $ | 1,433,837,564 | $ | 129,657,383 | ||||||||
** Cost of investments in affiliates | $ | — | $ | — | $ | 9,109,815 | $ | — | ||||||||
*** Cost of short-term investments | $ | 326,900 | $ | — | $ | 24,087,317 | $ | 3,917,772 | ||||||||
**** Cost of short-term investments in affiliates | $ | — | $ | 1,006,000 | $ | 60,713,731 | $ | 21,411,118 | ||||||||
***** Cost of foreign currencies | $ | 738,005 | $ | 10,629 | $ | 316,062 | $ | 332,661 |
45
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009 (continued)
ING | ING | ING | ING | |||||||||||||
Global | Global | Global | Global | |||||||||||||
Equity | Natural | Real | Value | |||||||||||||
Dividend | Resources | Estate | Choice | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 46,871,029 | $ | 99,674,223 | $ | 893,469,726 | $ | 107,498,577 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 4,981,625 | 12,738,026 | 62,662,954 | 4,095,704 | ||||||||||||
Net asset value and redemption price per share | $ | 9.41 | $ | 7.82 | $ | 14.26 | $ | 26.25 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 9.98 | $ | 8.30 | $ | 15.13 | $ | 27.85 | ||||||||
Class B: | ||||||||||||||||
Net assets | $ | 16,147,174 | n/a | $ | 22,217,641 | $ | 7,104,678 | |||||||||
Shares authorized | unlimited | n/a | unlimited | unlimited | ||||||||||||
Par value | $ | — | n/a | $ | — | $ | — | |||||||||
Shares outstanding | 1,721,160 | n/a | 1,849,532 | 253,709 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 9.38 | n/a | $ | 12.01 | $ | 28.00 | |||||||||
Maximum offering price per share | $ | 9.38 | n/a | $ | 12.01 | $ | 28.00 | |||||||||
Class C: | ||||||||||||||||
Net assets | $ | 37,686,865 | n/a | $ | 149,942,861 | $ | 48,308,248 | |||||||||
Shares authorized | unlimited | n/a | unlimited | unlimited | ||||||||||||
Par value | $ | — | n/a | $ | — | $ | — | |||||||||
Shares outstanding | 4,027,475 | n/a | 11,832,498 | 1,941,948 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 9.36 | n/a | $ | 12.67 | $ | 24.88 | |||||||||
Maximum offering price per share | $ | 9.36 | n/a | $ | 12.67 | $ | 24.88 | |||||||||
Class I: | ||||||||||||||||
Net assets | $ | 1,823,709 | $ | 510,089 | $ | 457,742,141 | $ | 10,387,715 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 193,640 | 65,148 | 32,104,094 | 392,509 | ||||||||||||
Net asset value and redemption price per share | $ | 9.42 | $ | 7.83 | $ | 14.26 | $ | 26.46 | ||||||||
Maximum offering price per share | $ | 9.42 | $ | 7.83 | $ | 14.26 | $ | 26.46 | ||||||||
Class O: | ||||||||||||||||
Net assets | $ | 14,920,282 | n/a | $ | 13,575,181 | n/a | ||||||||||
Shares authorized | unlimited | n/a | unlimited | n/a | ||||||||||||
Par value | $ | — | n/a | $ | — | n/a | ||||||||||
Shares outstanding | 1,587,724 | n/a | 952,251 | n/a | ||||||||||||
Net asset value and redemption price per share | $ | 9.40 | n/a | $ | 14.26 | n/a | ||||||||||
Maximum offering price per share | $ | 9.40 | n/a | $ | 14.26 | n/a | ||||||||||
Class Q: | ||||||||||||||||
Net assets | n/a | n/a | n/a | $ | 2,621,523 | |||||||||||
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 | 84,936 | ||||||||||||
Net asset value and redemption price per share | n/a | n/a | n/a | $ | 30.86 | |||||||||||
Maximum offering price per share | n/a | n/a | n/a | $ | 30.86 | |||||||||||
Class W: | ||||||||||||||||
Net assets | $ | 21,321,327 | $ | 186,264 | $ | 151,558,430 | $ | 249,713 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 2,079,826 | 18,891 | 10,612,879 | 9,439 | ||||||||||||
Net asset value and redemption price per share | $ | 10.25 | $ | 9.86 | $ | 14.28 | $ | 26.46 | ||||||||
Maximum offering price per share | $ | 10.25 | $ | 9.86 | $ | 14.28 | $ | 26.46 |
(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. |
46
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009
ING | ING | |||||||||||||||
Asia-Pacific | ING | European | ||||||||||||||
Real | Emerging | Real | ING | |||||||||||||
Estate | Countries | Estate | Foreign | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in securities at value+* | $ | 4,298,687 | $ | 132,192,662 | $ | 6,332,784 | $ | 252,022,149 | ||||||||
Investments in affiliates** | 50,440 | — | — | — | ||||||||||||
Short-term investments at value*** | — | 758,292 | — | 217,966 | ||||||||||||
Short-term investments in affiliates**** | 152,029 | — | 36,147 | 272,747 | ||||||||||||
Cash | — | 1,411,061 | — | 3 | ||||||||||||
Foreign currencies at value***** | 2,778 | 4,597,218 | 118,389 | 4,922,822 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 86,049 | 2,295,691 | — | 12,150,903 | ||||||||||||
Fund shares sold | — | 187,929 | 38,880 | 142,089 | ||||||||||||
Dividends and interest | 16,171 | 240,586 | 13,445 | 486,915 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | 149,503 | ||||||||||||
Prepaid expenses | 23,137 | 16,034 | 23,124 | 27,558 | ||||||||||||
Reimbursement due from manager | 12,467 | — | 4,497 | — | ||||||||||||
Total assets | 4,641,758 | 141,699,473 | 6,567,266 | 270,392,655 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Payable for investment securities purchased | 161,495 | 1,701,671 | — | 16,386,301 | ||||||||||||
Payable for fund shares redeemed | — | 802,420 | 44,020 | 1,740,903 | ||||||||||||
Payable upon receipt of securities loaned | — | 790,615 | — | 252,707 | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | 680,938 | ||||||||||||
Payable to affiliates | 5,764 | 205,811 | 7,404 | 354,152 | ||||||||||||
Payable for directors fees | 1,627 | 25,770 | 521 | 11,407 | ||||||||||||
Other accrued expenses and liabilities | 35,594 | 174,697 | 18,557 | 358,374 | ||||||||||||
Payable for borrowings against line of credit | — | — | — | 180,000 | ||||||||||||
Total liabilities | 204,480 | 3,700,984 | 70,502 | 19,964,782 | ||||||||||||
NET ASSETS | $ | 4,437,278 | $ | 137,998,489 | $ | 6,496,764 | $ | 250,427,873 | ||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||
Paid-in capital | $ | 9,364,943 | $ | 209,757,389 | $ | 8,367,724 | $ | 368,003,510 | ||||||||
Undistributed net investment income | 337,370 | — | 288,525 | 532,896 | ||||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (5,640,036 | ) | (103,019,292 | ) | (2,711,907 | ) | (161,108,524 | ) | ||||||||
Net unrealized appreciation on investments and foreign currency related transactions | 375,001 | 31,260,392 | 552,422 | 42,999,991 | ||||||||||||
NET ASSETS | $ | 4,437,278 | $ | 137,998,489 | $ | 6,496,764 | $ | 250,427,873 | ||||||||
+ Including securities loaned at value | $ | — | $ | 764,839 | $ | — | $ | 229,191 | ||||||||
* Cost of investments in securities | $ | 3,925,582 | $ | 100,872,063 | $ | 5,779,472 | $ | 208,474,135 | ||||||||
** Cost of investments in affiliates | $ | 48,723 | $ | — | $ | — | $ | — | ||||||||
*** Cost of short-term investments | $ | — | $ | 790,615 | $ | — | $ | 252,707 | ||||||||
**** Cost of short-term investments in affiliates | $ | 152,029 | $ | — | $ | 36,147 | $ | 272,747 | ||||||||
***** Cost of foreign currencies | $ | 2,778 | $ | 4,642,494 | $ | 119,142 | $ | 4,929,078 |
47
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009 (continued)
ING | ING | |||||||||||||||
Asia-Pacific | ING | European | ||||||||||||||
Real | Emerging | Real | ING | |||||||||||||
Estate | Countries | Estate | Foreign | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 3,479,291 | $ | 77,556,073 | $ | 6,399,513 | $ | 93,828,563 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 609,600 | 3,281,198 | 934,523 | 7,304,587 | ||||||||||||
Net asset value and redemption price per share | $ | 5.71 | $ | 23.64 | $ | 6.85 | $ | 12.85 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 6.06 | $ | 25.08 | $ | 7.27 | $ | 13.63 | ||||||||
Class B: | ||||||||||||||||
Net assets | $ | 27,048 | $ | 4,973,007 | $ | 29,879 | $ | 14,076,779 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 4,761 | 212,104 | 4,383 | 1,139,269 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 5.68 | $ | 23.45 | $ | 6.82 | $ | 12.36 | ||||||||
Maximum offering price per share | $ | 5.68 | $ | 23.45 | $ | 6.82 | $ | 12.36 | ||||||||
Class C: | ||||||||||||||||
Net assets | $ | 930,371 | $ | 16,867,725 | $ | 66,688 | $ | 76,676,845 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 163,642 | 766,411 | 9,791 | 6,203,980 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 5.69 | $ | 22.01 | $ | 6.81 | $ | 12.36 | ||||||||
Maximum offering price per share | $ | 5.69 | $ | 22.01 | $ | 6.81 | $ | 12.36 | ||||||||
Class I: | ||||||||||||||||
Net assets | $ | 568 | $ | 30,757,793 | $ | 684 | $ | 65,256,027 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 100 | 1,300,175 | 100 | 4,989,597 | ||||||||||||
Net asset value and redemption price per share | $ | 5.68 | $ | 23.66 | $ | 6.84 | $ | 13.08 | ||||||||
Maximum offering price per share | $ | 5.68 | $ | 23.66 | $ | 6.84 | $ | 13.08 | ||||||||
Class Q: | ||||||||||||||||
Net assets | n/a | $ | 7,750,666 | n/a | $ | 23,446 | ||||||||||
Shares authorized | n/a | unlimited | n/a | unlimited | ||||||||||||
Par value | n/a | $ | — | n/a | $ | — | ||||||||||
Shares outstanding | n/a | 315,213 | n/a | 1,775 | ||||||||||||
Net asset value and redemption price per share | n/a | $ | 24.59 | n/a | $ | 13.21 | ||||||||||
Maximum offering price per share | n/a | $ | 24.59 | n/a | $ | 13.21 | ||||||||||
Class W: | ||||||||||||||||
Net assets | n/a | $ | 93,225 | n/a | $ | 566,213 | ||||||||||
Shares authorized | n/a | unlimited | n/a | unlimited | ||||||||||||
Par value | n/a | $ | — | n/a | $ | — | ||||||||||
Shares outstanding | n/a | 3,763 | n/a | 40,496 | ||||||||||||
Net asset value and redemption price per share | n/a | $ | 24.77 | n/a | $ | 13.98 | ||||||||||
Maximum offering price per share | n/a | $ | 24.77 | n/a | $ | 13.98 |
(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. |
48
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009
ING | ING | ING | ||||||||||||||
ING | Index Plus | International | International | |||||||||||||
Greater | International | Capital | Real | |||||||||||||
China | Equity | Appreciation | Estate | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
ASSETS: | ||||||||||||||||
Investments in securities at value+* | $ | 46,407,998 | $ | 110,186,574 | $ | 108,419,171 | $ | 511,357,414 | ||||||||
Investments in affiliates** | — | — | — | 3,704,870 | ||||||||||||
Short-term investments at value*** | — | — | 3,716,811 | — | ||||||||||||
Short-term investments in affiliates**** | — | — | — | 14,529,285 | ||||||||||||
Cash | 1,502,558 | 442,578 | — | — | ||||||||||||
Foreign currencies at value***** | 167,944 | — | 631 | 105,200 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | — | — | 2,186,050 | 27,515,128 | ||||||||||||
Fund shares sold | 704,225 | 16,738 | 79,617 | 982,353 | ||||||||||||
Dividends and interest | 10,643 | 538,139 | 319,409 | 1,871,860 | ||||||||||||
Prepaid expenses | 8,597 | 1,773 | 9,526 | 31,594 | ||||||||||||
Reimbursement due from manager | — | 1,463 | 1,961 | — | ||||||||||||
Total assets | 48,801,965 | 111,187,265 | 114,733,176 | 560,097,704 | ||||||||||||
LIABILITIES: | ||||||||||||||||
Payable for investment securities purchased | 655,456 | 67 | 1,539,861 | 6,224,044 | ||||||||||||
Payable for fund shares redeemed | 2,045,554 | 770,481 | 96,699 | 16,285,220 | ||||||||||||
Payable upon receipt of securities loaned | — | — | 3,732,764 | — | ||||||||||||
Payable to affiliates | 78,283 | 78,060 | 114,635 | 537,964 | ||||||||||||
Payable to custodian due to bank overdraft | — | — | 413,257 | — | ||||||||||||
Payable to custodian due to foreign currency overdraft****** | — | 187,396 | — | — | ||||||||||||
Payable for directors fees | 2,362 | 6,733 | 15,995 | 8,530 | ||||||||||||
Other accrued expenses and liabilities | 77,175 | 178,091 | 82,593 | 313,175 | ||||||||||||
Total liabilities | 2,858,830 | 1,220,828 | 5,995,804 | 23,368,933 | ||||||||||||
NET ASSETS | $ | 45,943,135 | $ | 109,966,437 | $ | 108,737,372 | $ | 536,728,771 | ||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||
Paid-in capital | $ | 45,180,034 | $ | 190,947,144 | $ | 172,029,959 | $ | 783,940,836 | ||||||||
Undistributed net investment income | 675,252 | 1,980,573 | 1,452 | 31,518,711 | ||||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (7,178,753 | ) | (91,617,072 | ) | (72,671,359 | ) | (313,249,761 | ) | ||||||||
Net unrealized appreciation on investments and foreign currency related transactions | 7,266,602 | 8,655,792 | 9,377,320 | 34,518,985 | ||||||||||||
NET ASSETS | $ | 45,943,135 | $ | 109,966,437 | $ | 108,737,372 | $ | 536,728,771 | ||||||||
+ Including securities loaned at value | $ | — | $ | — | $ | 3,552,353 | $ | — | ||||||||
* Cost of investments in securities | $ | 39,141,112 | $ | 101,555,068 | $ | 99,029,877 | $ | 476,681,823 | ||||||||
** Cost of investments in affiliates | $ | — | $ | — | $ | — | $ | 3,865,065 | ||||||||
*** Cost of short-term investments | $ | — | $ | — | $ | 3,732,764 | $ | — | ||||||||
**** Cost of short-term investments in affiliates | $ | — | $ | — | $ | — | $ | 14,529,285 | ||||||||
***** Cost of foreign currencies | $ | 168,228 | $ | — | $ | 712 | $ | 104,737 | ||||||||
****** Cost of foreign currency overdraft | $ | — | $ | 187,671 | $ | — | $ | — |
49
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009 (continued)
ING | ING | ING | ||||||||||||||
ING | Index Plus | International | International | |||||||||||||
Greater | International | Capital | Real | |||||||||||||
China | Equity | Appreciation | Estate | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
Net assets | $ | 32,859,582 | $ | 8,828,117 | $ | 25,818,693 | $ | 116,988,760 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 2,301,646 | 1,131,341 | 2,857,632 | 13,798,896 | ||||||||||||
Net asset value and redemption price per share | $ | 14.28 | $ | 7.80 | $ | 9.03 | $ | 8.48 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 15.15 | $ | 8.28 | $ | 9.58 | $ | 9.00 | ||||||||
Class B: | ||||||||||||||||
Net assets | $ | 3,245,547 | $ | 1,221,441 | $ | 4,459,575 | $ | 3,874,958 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 230,015 | 156,590 | 498,282 | 459,000 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 14.11 | $ | 7.80 | $ | 8.95 | $ | 8.44 | ||||||||
Maximum offering price per share | $ | 14.11 | $ | 7.80 | $ | 8.95 | $ | 8.44 | ||||||||
Class C: | ||||||||||||||||
Net assets | $ | 6,182,189 | $ | 1,444,959 | $ | 7,825,032 | $ | 26,520,307 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 436,833 | 186,337 | 871,075 | 3,142,353 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 14.15 | $ | 7.75 | $ | 8.98 | $ | 8.44 | ||||||||
Maximum offering price per share | $ | 14.15 | $ | 7.75 | $ | 8.98 | $ | 8.44 | ||||||||
Class I: | ||||||||||||||||
Net assets | $ | 690,119 | $ | 51,144,046 | $ | 58,959,106 | $ | 387,250,562 | ||||||||
Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares outstanding | 48,221 | 6,546,122 | 6,551,842 | 45,610,706 | ||||||||||||
Net asset value and redemption price per share | $ | 14.31 | $ | 7.81 | $ | 9.00 | $ | 8.49 | ||||||||
Maximum offering price per share | $ | 14.31 | $ | 7.81 | $ | 9.00 | $ | 8.49 | ||||||||
Class O: | ||||||||||||||||
Net assets | $ | 2,965,698 | $ | 47,327,874 | n/a | n/a | ||||||||||
Shares authorized | unlimited | unlimited | n/a | n/a | ||||||||||||
Par value | $ | — | $ | — | n/a | n/a | ||||||||||
Shares outstanding | 209,015 | 6,107,734 | n/a | n/a | ||||||||||||
Net asset value and redemption price per share | $ | 14.19 | $ | 7.75 | n/a | n/a | ||||||||||
Maximum offering price per share | $ | 14.19 | $ | 7.75 | n/a | n/a | ||||||||||
Class Q: | ||||||||||||||||
Net assets | n/a | n/a | $ | 11,674,966 | 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 | 1,292,194 | n/a | ||||||||||||
Net asset value and redemption price per share | n/a | n/a | $ | 9.03 | n/a | |||||||||||
Maximum offering price per share | n/a | n/a | $ | 9.03 | n/a | |||||||||||
Class W: | ||||||||||||||||
Net assets | n/a | n/a | n/a | $ | 2,094,184 | |||||||||||
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 | 246,119 | ||||||||||||
Net asset value and redemption price per share | n/a | n/a | n/a | $ | 8.51 | |||||||||||
Maximum offering price per share | n/a | n/a | n/a | $ | 8.51 |
(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. |
50
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009
ING | ING | |||||||||||
International | ING | International | ||||||||||
SmallCap | International | Value | ||||||||||
Multi-Manager | Value | Choice | ||||||||||
Fund | Fund | Fund | ||||||||||
ASSETS: | ||||||||||||
Investments in securities at value+* | $ | 412,895,776 | $ | 1,629,713,898 | $ | 46,835,595 | ||||||
Investments in affiliates** | 117,697 | — | — | |||||||||
Short-term investments at value*** | 274,757 | 47,446,834 | — | |||||||||
Short-term investments in affiliates**** | 3,763,854 | 56,070,000 | 1,670,572 | |||||||||
Cash | 8,683,489 | 6,463 | — | |||||||||
Foreign currencies at value***** | 69,092 | 10,218,273 | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 2,890,972 | 42,645,016 | 1,066,213 | |||||||||
Fund shares sold | 1,299,134 | 871,533 | 200,748 | |||||||||
Dividends and interest | 1,106,485 | 7,800,947 | 131,229 | |||||||||
Prepaid expenses | 26,564 | 36,418 | 8,131 | |||||||||
Total assets | 431,127,820 | 1,794,809,382 | 49,912,488 | |||||||||
LIABILITIES: | ||||||||||||
Payable for investment securities purchased | 2,411,135 | 46,559,125 | 627,121 | |||||||||
Payable for fund shares redeemed | 661,806 | 19,586,336 | 38,153 | |||||||||
Payable upon receipt of securities loaned | 290,696 | 47,687,292 | — | |||||||||
Payable to affiliates | 517,259 | 2,126,523 | 55,712 | |||||||||
Payable to custodian due to foreign currency overdraft****** | — | — | 1,709 | |||||||||
Payable for directors fees | 16,888 | 45,829 | 2,268 | |||||||||
Other accrued expenses and liabilities | 448,429 | 1,646,975 | 39,431 | |||||||||
Payable for borrowings against line of credit | — | 3,240,000 | — | |||||||||
Total liabilities | 4,346,213 | 120,892,080 | 764,394 | |||||||||
NET ASSETS | $ | 426,781,607 | $ | 1,673,917,302 | $ | 49,148,094 | ||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||
Paid-in capital | $ | 758,437,325 | $ | 2,598,766,710 | $ | 67,044,310 | ||||||
Undistributed net investment income | 5,637,485 | 26,247,882 | 313,098 | |||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (361,154,422 | ) | (826,105,283 | ) | (16,157,257 | ) | ||||||
Net unrealized appreciation or depreciation on investments and foreign currency related transactions | 23,861,219 | (124,992,007 | ) | (2,052,057 | ) | |||||||
NET ASSETS | $ | 426,781,607 | $ | 1,673,917,302 | $ | 49,148,094 | ||||||
+ Including securities loaned at value | $ | 274,117 | $ | 44,188,883 | $ | — | ||||||
* Cost of investments in securities | $ | 389,019,994 | $ | 1,755,034,277 | $ | 48,889,534 | ||||||
** Cost of investments in affiliates | $ | 130,868 | $ | — | $ | — | ||||||
*** Cost of short-term investments | $ | 290,696 | $ | 47,687,292 | $ | — | ||||||
**** Cost of short-term investments in affiliates | $ | 3,763,854 | $ | 56,070,000 | $ | 1,670,572 | ||||||
***** Cost of foreign currencies | $ | 68,933 | $ | 10,122,158 | $ | — | ||||||
****** Cost of foreign currency overdraft | $ | — | $ | — | $ | 1,795 |
51
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009 (continued)
ING | ING | |||||||||||
International | ING | International | ||||||||||
SmallCap | International | Value | ||||||||||
Multi-Manager | Value | Choice | ||||||||||
Fund | Fund | Fund | ||||||||||
Class A: | ||||||||||||
Net assets | $ | 177,914,410 | $ | 725,329,491 | $ | 15,614,974 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | 0.01 | $ | — | ||||||
Shares outstanding | 5,656,926 | 64,188,898 | 1,613,108 | |||||||||
Net asset value and redemption price per share | $ | 31.45 | $ | 11.30 | $ | 9.68 | ||||||
Maximum offering price per share (5.75%)(1) | $ | 33.37 | $ | 11.99 | $ | 10.27 | ||||||
Class B: | ||||||||||||
Net assets | $ | 8,383,027 | $ | 37,743,427 | $ | 1,785,643 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | 0.01 | $ | — | ||||||
Shares outstanding | 253,958 | 3,389,270 | 187,373 | |||||||||
Net asset value and redemption price per share(2) | $ | 33.01 | $ | 11.14 | $ | 9.53 | ||||||
Maximum offering price per share | $ | 33.01 | $ | 11.14 | $ | 9.53 | ||||||
Class C: | ||||||||||||
Net assets | $ | 31,928,031 | $ | 279,060,325 | $ | 4,090,634 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | 0.01 | $ | — | ||||||
Shares outstanding | 1,085,654 | 25,487,306 | 427,845 | |||||||||
Net asset value and redemption price per share(2) | $ | 29.41 | $ | 10.95 | $ | 9.56 | ||||||
Maximum offering price per share | $ | 29.41 | $ | 10.95 | $ | 9.56 | ||||||
Class I: | ||||||||||||
Net assets | $ | 164,985,170 | $ | 607,516,611 | $ | 27,653,678 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | 0.01 | $ | — | ||||||
Shares outstanding | 5,232,914 | 53,780,411 | 2,859,699 | |||||||||
Net asset value and redemption price per share | $ | 31.53 | $ | 11.30 | $ | 9.67 | ||||||
Maximum offering price per share | $ | 31.53 | $ | 11.30 | $ | 9.67 | ||||||
Class O: | ||||||||||||
Net assets | $ | 564,891 | n/a | n/a | ||||||||
Shares authorized | unlimited | n/a | n/a | |||||||||
Par value | $ | — | n/a | n/a | ||||||||
Shares outstanding | 18,058 | n/a | n/a | |||||||||
Net asset value and redemption price per share | $ | 31.28 | n/a | n/a | ||||||||
Maximum offering price per share | $ | 31.28 | n/a | n/a | ||||||||
Class Q: | ||||||||||||
Net assets | $ | 30,910,466 | $ | 24,264,195 | n/a | |||||||
Shares authorized | unlimited | unlimited | n/a | |||||||||
Par value | $ | — | $ | 0.01 | n/a | |||||||
Shares outstanding | 899,749 | 2,143,148 | n/a | |||||||||
Net asset value and redemption price per share | $ | 34.35 | $ | 11.32 | n/a | |||||||
Maximum offering price per share | $ | 34.35 | $ | 11.32 | n/a | |||||||
Class W: | ||||||||||||
Net assets | $ | 12,095,612 | $ | 3,253 | $ | 3,165 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | 0.01 | $ | — | ||||||
Shares outstanding | 325,078 | 288 | 327 | |||||||||
Net asset value and redemption price per share | $ | 37.21 | $ | 11.30 | $ | 9.68 | ||||||
Maximum offering price per share | $ | 37.21 | $ | 11.30 | $ | 9.68 |
(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. |
52
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009
ING | ING | |||||||||||
ING | Global | Diversified | ||||||||||
Russia | Bond | International | ||||||||||
Fund | Fund | Fund | ||||||||||
ASSETS: | ||||||||||||
Investments in securities at value+* | $ | 364,558,980 | $ | 288,889,717 | $ | — | ||||||
Investments in affiliates** | — | — | 229,623,077 | |||||||||
Short-term investments at value*** | 12,134,158 | — | — | |||||||||
Short-term investments in affiliates**** | — | 2,295,000 | — | |||||||||
Short-term investments at amortized cost | — | 999,925 | — | |||||||||
Cash | 219,504 | — | 945,283 | |||||||||
Receivable for derivatives collateral held at broker (Note 2) | — | 1,150,000 | — | |||||||||
Cash collateral for futures | — | 2,796,269 | — | |||||||||
Foreign cash collateral for futures at value***** | — | 205,930 | — | |||||||||
Receivables: | ||||||||||||
Investment securities sold on a delayed-delivery or when-issued basis | — | 5,696,873 | — | |||||||||
Investment securities sold | 7,921,399 | 5,989,888 | 320,564 | |||||||||
Fund shares sold | 1,277,862 | 8,117,608 | 240,653 | |||||||||
Dividends and interest | 1,841,897 | 3,051,474 | — | |||||||||
Futures variation margin receivable | — | 145,752 | — | |||||||||
Unrealized appreciation on forward foreign currency contracts | — | 1,178,531 | — | |||||||||
Upfront payments made on swap agreements | — | 380,365 | — | |||||||||
Unrealized appreciation on swap agreements | — | 183,575 | — | |||||||||
Prepaid expenses | 14,435 | 27,113 | 15,608 | |||||||||
Reimbursement due from manager | — | 64,572 | 13,485 | |||||||||
Total assets | 387,968,235 | 321,172,592 | 231,158,670 | |||||||||
LIABILITIES: | ||||||||||||
Payable for investment securities purchased on a delayed-delivery or when-issued basis | — | 14,075,453 | — | |||||||||
Payable for investment securities purchased | — | 8,006,432 | — | |||||||||
Payable for terminated investment contracts (Note 15) | — | 163,367 | — | |||||||||
Payable for fund shares redeemed | 1,249,577 | 433,765 | 1,123,413 | |||||||||
Payable for futures variation margin | — | 631,751 | — | |||||||||
Payable upon receipt of securities loaned | 12,302,448 | — | — | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | 1,485,210 | — | |||||||||
Unrealized depreciation on swap agreements | — | 212,061 | — | |||||||||
Payable to affiliates | 524,938 | 176,468 | 132,487 | |||||||||
Payable to custodian due to bank overdraft | — | 628,283 | — | |||||||||
Payable for directors fees | 24,376 | 2,269 | 10,266 | |||||||||
Other accrued expenses and liabilities | 614,926 | 134,812 | 313,779 | |||||||||
Written optionsˆ | — | 221,277 | — | |||||||||
Total liabilities | 14,716,265 | 26,171,148 | 1,579,945 | |||||||||
NET ASSETS | $ | 373,251,970 | $ | 295,001,444 | $ | 229,578,725 | ||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||
Paid-in capital | $ | 459,997,897 | $ | 265,927,751 | $ | 406,272,610 | ||||||
Undistributed net investment income | — | 7,124,031 | — | |||||||||
Accumulated net realized gain (loss) on investments, foreign currency related transactions, futures, swaps, and written options | (71,432,621 | ) | 1,363,618 | (152,226,311 | ) | |||||||
Net unrealized appreciation or depreciation on investments, foreign currency related transactions, futures, swaps, and written options | (15,313,306 | ) | 20,586,044 | (24,467,574 | ) | |||||||
NET ASSETS | $ | 373,251,970 | $ | 295,001,444 | $ | 229,578,725 | ||||||
+ Including securities loaned at value | $ | 11,548,629 | $ | — | $ | — | ||||||
* Cost of investments in securities | $ | 379,717,906 | $ | 267,707,712 | $ | — | ||||||
** Cost of investments in affiliates | $ | — | $ | — | $ | 254,090,651 | ||||||
*** Cost of short-term investments | $ | 12,302,448 | $ | — | $ | — | ||||||
**** Cost of short-term investments in affiliates | $ | — | $ | 2,295,000 | $ | — | ||||||
***** Cost of foreign cash collateral for futures | $ | — | $ | 206,635 | $ | — | ||||||
ˆ Premiums received on written options | $ | — | $ | 218,966 | $ | — |
53
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES as of October 31, 2009 (continued)
ING | ING | |||||||||||
ING | Global | Diversified | ||||||||||
Russia | Bond | International | ||||||||||
Fund | Fund | Fund | ||||||||||
Class A: | ||||||||||||
Net assets | $ | 373,248,836 | $ | 103,255,386 | $ | 129,965,548 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | — | $ | — | ||||||
Shares outstanding | 12,639,723 | 8,425,914 | 15,712,205 | |||||||||
Net asset value and redemption price per share | $ | 29.53 | $ | 12.25 | $ | 8.27 | ||||||
Maximum offering price per share | $ | 31.33(1 | ) | $ | 12.57(2 | ) | $ | 8.77(1 | ) | |||
Class B: | ||||||||||||
Net assets | n/a | $ | 5,135,427 | $ | 19,918,959 | |||||||
Shares authorized | n/a | unlimited | unlimited | |||||||||
Par value | n/a | $ | — | $ | — | |||||||
Shares outstanding | n/a | 422,412 | 2,421,741 | |||||||||
Net asset value and redemption price per share(3) | n/a | $ | 12.16 | $ | 8.23 | |||||||
Maximum offering price per share | n/a | $ | 12.16 | $ | 8.23 | |||||||
Class C: | ||||||||||||
Net assets | n/a | $ | 45,772,715 | $ | 71,830,669 | |||||||
Shares authorized | n/a | unlimited | unlimited | |||||||||
Par value | n/a | $ | — | $ | — | |||||||
Shares outstanding | n/a | 3,752,064 | 8,754,427 | |||||||||
Net asset value and redemption price per share(3) | n/a | $ | 12.20 | $ | 8.21 | |||||||
Maximum offering price per share | n/a | $ | 12.20 | $ | 8.21 | |||||||
Class I: | ||||||||||||
Net assets | $ | 3,134 | $ | 136,178,148 | $ | 3,209,017 | ||||||
Shares authorized | unlimited | unlimited | unlimited | |||||||||
Par value | $ | — | $ | — | $ | — | ||||||
Shares outstanding | 106 | 11,147,615 | 388,568 | |||||||||
Net asset value and redemption price per share | $ | 29.54 | $ | 12.22 | $ | 8.26 | ||||||
Maximum offering price per share | $ | 29.54 | $ | 12.22 | $ | 8.26 | ||||||
Class O: | ||||||||||||
Net assets | n/a | $ | 3,126,486 | $ | 1,911,456 | |||||||
Shares authorized | n/a | unlimited | unlimited | |||||||||
Par value | n/a | $ | — | $ | — | |||||||
Shares outstanding | n/a | 259,156 | 232,083 | |||||||||
Net asset value and redemption price per share | n/a | $ | 12.06 | $ | 8.24 | |||||||
Maximum offering price per share | n/a | $ | 12.06 | $ | 8.24 | |||||||
Class R: | ||||||||||||
Net assets | n/a | n/a | $ | 198,289 | ||||||||
Shares authorized | n/a | n/a | unlimited | |||||||||
Par value | n/a | n/a | $ | — | ||||||||
Shares outstanding | n/a | n/a | 24,243 | |||||||||
Net asset value and redemption price per share | n/a | n/a | $ | 8.18 | ||||||||
Maximum offering price per share | n/a | n/a | $ | 8.18 | ||||||||
Class W: | ||||||||||||
Net assets | n/a | $ | 1,533,282 | $ | 2,544,787 | |||||||
Shares authorized | n/a | unlimited | unlimited | |||||||||
Par value | n/a | $ | — | $ | — | |||||||
Shares outstanding | n/a | 127,134 | 308,596 | |||||||||
Net asset value and redemption price per share | n/a | $ | 12.06 | $ | 8.25 | |||||||
Maximum offering price per share | n/a | $ | 12.06 | $ | 8.25 |
(1) | Maximum offering price is 5.75% and is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
(2) | Maximum offering price is 2.50% and is computed at 100/97.50 of net asset value. On purchases of $100,000 or more, the offering price is reduced. |
(3) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
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STATEMENTS OF OPERATIONS for the year ended October 31, 2009
ING | ING | |||||||||||||||
Global | Global | ING | ING | |||||||||||||
Equity | Natural | Global | Global | |||||||||||||
Dividend | Resources | Real Estate | Value Choice | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends, net of foreign taxes withheld*(1) | $ | 5,642,124 | $ | 1,776,138 | $ | 51,281,396 | $ | 2,551,078 | ||||||||
Interest* | 4,819 | 228 | 478,799 | 92,105 | ||||||||||||
Securities lending income, net | 8,308 | — | 194,786 | 46,414 | ||||||||||||
Total investment income | 5,655,251 | 1,776,366 | 51,954,981 | 2,689,597 | ||||||||||||
EXPENSES: | ||||||||||||||||
Investment management fees | 866,532 | 763,936 | 9,134,298 | 1,195,599 | ||||||||||||
Distribution and service fees: | ||||||||||||||||
Class A | 118,802 | 212,003 | 1,713,857 | 216,759 | ||||||||||||
Class B | 164,151 | — | 191,764 | 58,820 | ||||||||||||
Class C | 375,788 | — | 1,217,492 | 300,776 | ||||||||||||
Class O | 33,039 | — | 28,021 | — | ||||||||||||
Class Q | — | — | — | 6,516 | ||||||||||||
Transfer agent fees: | ||||||||||||||||
Class A | 138,126 | 182,585 | 1,925,991 | 153,229 | ||||||||||||
Class B | 47,612 | — | 53,990 | 10,386 | ||||||||||||
Class C | 108,860 | — | 340,790 | 52,994 | ||||||||||||
Class I | 1,160 | 46 | 492,959 | 1,666 | ||||||||||||
Class O | 38,542 | — | 31,666 | — | ||||||||||||
Class Q | — | — | — | 596 | ||||||||||||
Class W | 5,786 | 15 | 163,501 | 3 | ||||||||||||
Administrative service fees | 123,789 | 85,191 | 1,242,387 | 132,843 | ||||||||||||
Shareholder reporting expense | 56,786 | 39,452 | 645,850 | 54,342 | ||||||||||||
Registration fees | 79,184 | 42,733 | 202,441 | 74,448 | ||||||||||||
Professional fees | 37,072 | 26,465 | 276,608 | 36,331 | ||||||||||||
Custody and accounting expense | 49,723 | 20,160 | 347,966 | 28,700 | ||||||||||||
Directors fees | 8,231 | 4,482 | 41,729 | 4,110 | ||||||||||||
Miscellaneous expense | 15,671 | 18,975 | 77,386 | 8,488 | ||||||||||||
Interest expense | 1,682 | 87 | 158 | 1,562 | ||||||||||||
Total expenses | 2,270,536 | 1,396,130 | 18,128,854 | 2,338,168 | ||||||||||||
Net waived and reimbursed fees | (172,058 | ) | (809 | ) | (22,738 | ) | (101,804 | ) | ||||||||
Brokerage commission recapture | (1,791 | ) | — | — | (13,945 | ) | ||||||||||
Net expenses | 2,096,687 | 1,395,321 | 18,106,116 | 2,222,419 | ||||||||||||
Net investment income | 3,558,564 | 381,045 | 33,848,865 | 467,178 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS | ||||||||||||||||
Net realized loss on: | ||||||||||||||||
Investments | (72,935,200 | ) | (24,750,146 | ) | (502,880,201 | ) | (11,686,896 | ) | ||||||||
Foreign currency related transactions | (354,860 | ) | (23,296 | ) | (299,572 | ) | (116,939 | ) | ||||||||
Net realized loss on investments and foreign currency related transactions | (73,290,060 | ) | (24,773,442 | ) | (503,179,773 | ) | (11,803,835 | ) | ||||||||
Net change in unrealized appreciation or depreciation on: | ||||||||||||||||
Investments | 80,181,803 | 43,917,033 | 688,316,349 | 65,878,079 | ||||||||||||
Foreign currency related transactions | 10,110 | 26,492 | (952 | ) | (10,955 | ) | ||||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 80,191,913 | 43,943,525 | 688,315,397 | 65,867,124 | ||||||||||||
Net realized and unrealized gain on investments and foreign currency related transactions | 6,901,853 | 19,170,083 | 185,135,624 | 54,063,289 | ||||||||||||
Increase in net assets resulting from operations | $ | 10,460,417 | $ | 19,551,128 | $ | 218,984,489 | $ | 54,530,467 | ||||||||
* Foreign taxes withheld | $ | 331,290 | $ | 57,279 | $ | 2,641,339 | $ | 178,594 | ||||||||
(1) Dividends from affiliates | $ | — | $ | 4,110 | $ | 236,062 | $ | 38,372 |
55
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STATEMENTS OF OPERATIONS for the year ended October 31, 2009
ING | ING | ING | ||||||||||||||
Asia-Pacific | Emerging | European | ING | |||||||||||||
Real Estate | Countries | Real Estate | Foreign | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends, net of foreign taxes withheld*(1) | $ | 137,232 | $ | 2,208,648 | $ | 138,136 | $ | 7,185,630 | ||||||||
Interest* | 2,591 | 320,689 | 302 | 121,786 | ||||||||||||
Securities lending income, net | — | 29,980 | — | 72,184 | ||||||||||||
Total investment income | 139,823 | 2,559,317 | 138,438 | 7,379,600 | ||||||||||||
EXPENSES: | ||||||||||||||||
Investment management fees | 35,133 | 1,368,070 | 33,845 | 2,623,683 | ||||||||||||
Distribution and service fees: | ||||||||||||||||
Class A | 6,785 | 216,616 | 8,302 | 259,101 | ||||||||||||
Class B | 200 | 40,960 | 160 | 146,861 | ||||||||||||
Class C | 7,788 | 146,012 | 471 | 817,253 | ||||||||||||
Class Q | — | 14,366 | — | 84 | ||||||||||||
Transfer agent fees: | ||||||||||||||||
Class A | 4,468 | 170,741 | 7,958 | 227,922 | ||||||||||||
Class B | 33 | 11,273 | 38 | 32,204 | ||||||||||||
Class C | 1,289 | 40,313 | 112 | 179,146 | ||||||||||||
Class I | 1 | 19,777 | 1 | 11,158 | ||||||||||||
Class Q | — | 4,912 | — | 6 | ||||||||||||
Class W | — | 39 | — | 73 | ||||||||||||
Administrative service fees | 3,513 | 109,444 | 3,384 | 262,363 | ||||||||||||
Shareholder reporting expense | 1,477 | 46,556 | 1,120 | 108,668 | ||||||||||||
Registration fees | 47,021 | 78,943 | 45,553 | 88,967 | ||||||||||||
Professional fees | 16,910 | 81,032 | 5,801 | 57,574 | ||||||||||||
Custody and accounting expense | 53,549 | 102,115 | 20,789 | 249,755 | ||||||||||||
Directors fees | 137 | 5,825 | 828 | 17,453 | ||||||||||||
Miscellaneous expense | 5,808 | 17,332 | 1,994 | 27,371 | ||||||||||||
Interest expense | 305 | — | — | 974 | ||||||||||||
Total expenses | 184,417 | 2,474,326 | 130,356 | 5,110,616 | ||||||||||||
Net waived and reimbursed fees | (116,265 | ) | (210,421 | ) | (70,622 | ) | (164,655 | ) | ||||||||
Net expenses | 68,152 | 2,263,905 | 59,734 | 4,945,961 | ||||||||||||
Net investment income | 71,671 | 295,412 | 78,704 | 2,433,639 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS | ||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||
Investments | (3,270,730 | ) | (40,873,628 | ) | (1,160,758 | ) | (59,668,934 | ) | ||||||||
Foreign currency related transactions | (3,167 | ) | (548,196 | ) | 7,922 | 9,522,806 | ||||||||||
Net realized loss on investments and foreign currency related transactions | (3,273,897 | ) | (41,421,824 | ) | (1,152,836 | ) | (50,146,128 | ) | ||||||||
Net change in unrealized appreciation or depreciation on: | ||||||||||||||||
Investments | 3,792,084 | 85,943,383 | 2,231,466 | 86,719,836 | ||||||||||||
Foreign currency related transactions | (776 | ) | (16,932 | ) | 210 | (15,079,427 | ) | |||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 3,791,308 | 85,926,451 | 2,231,676 | 71,640,409 | ||||||||||||
Net realized and unrealized gain on investments and foreign currency related transactions | 517,411 | 44,504,627 | 1,078,840 | 21,494,281 | ||||||||||||
Increase in net assets resulting from operations | $ | 589,082 | $ | 44,800,039 | $ | 1,157,544 | $ | 23,927,920 | ||||||||
* Foreign taxes withheld | $ | 9,091 | $ | 190,908 | $ | 16,435 | $ | 852,960 | ||||||||
(1) Dividends from affiliates | $ | 1,404 | $ | — | $ | 579 | $ | 55,203 |
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STATEMENTS OF OPERATIONS for the year ended October 31, 2009
ING | ING | |||||||||||||||
ING | Index Plus | International | ING | |||||||||||||
Greater | International | Capital | International | |||||||||||||
China | Equity | Appreciation | Real Estate | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
INVESTMENT INCOME: | ||||||||||||||||
Dividends, net of foreign taxes withheld*(1) | $ | 836,520 | $ | 3,319,582 | $ | 1,226,328 | $ | 16,946,739 | ||||||||
Interest* | 55,556 | 458,421 | 51,663 | 222,841 | ||||||||||||
Securities lending income, net | — | — | 6,693 | — | ||||||||||||
Total investment income | 892,076 | 3,778,003 | 1,284,684 | 17,169,580 | ||||||||||||
EXPENSES: | ||||||||||||||||
Investment management fees | 380,274 | 559,852 | 512,003 | 4,080,622 | ||||||||||||
Distribution and service fees: | ||||||||||||||||
Class A | 63,257 | 21,069 | 16,768 | 191,364 | ||||||||||||
Class B | 25,024 | 12,101 | 12,047 | 33,670 | ||||||||||||
Class C | 36,729 | 12,615 | 20,423 | 249,080 | ||||||||||||
Class O | 3,885 | 102,123 | — | — | ||||||||||||
Class Q | — | — | 6,773 | — | ||||||||||||
Transfer agent fees: | ||||||||||||||||
Class A | 81,664 | 33,880 | 8,950 | 201,089 | ||||||||||||
Class B | 8,075 | 4,837 | 1,455 | 8,817 | ||||||||||||
Class C | 11,817 | 4,990 | 2,493 | 65,096 | ||||||||||||
Class I | 380 | 18,528 | 4,809 | 19,945 | ||||||||||||
Class O | 4,249 | 161,299 | — | — | ||||||||||||
Class Q | — | — | 95 | — | ||||||||||||
Class W | — | — | — | 30 | ||||||||||||
Administrative service fees | 33,067 | 101,790 | 60,235 | 426,648 | ||||||||||||
Shareholder reporting expense | 15,458 | 51,083 | 6,105 | 133,050 | ||||||||||||
Registration fees | 66,848 | 66,840 | 53,576 | 76,797 | ||||||||||||
Professional fees | 19,411 | 23,737 | 13,326 | 117,680 | ||||||||||||
Custody and accounting expense | 33,554 | 70,558 | 42,753 | 229,612 | ||||||||||||
Directors fees | 2,785 | 6,454 | 3,915 | 17,155 | ||||||||||||
Miscellaneous expense | 14,276 | 22,598 | 14,143 | 26,530 | ||||||||||||
Interest expense | 1,227 | 827 | 1,361 | 2,969 | ||||||||||||
Tax expense | — | — | — | 114,403 | ||||||||||||
Total expenses | 801,980 | 1,275,181 | 781,230 | 5,994,557 | ||||||||||||
Net waived and reimbursed fees | (60,086 | ) | (208,916 | ) | (25,287 | ) | (223,172 | ) | ||||||||
Brokerage commission recapture | — | — | (6,057 | ) | — | |||||||||||
Net expenses | 741,894 | 1,066,265 | 749,886 | 5,771,385 | ||||||||||||
Net investment income | 150,182 | 2,711,738 | 534,798 | 11,398,195 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS | ||||||||||||||||
Net realized loss on: | ||||||||||||||||
Investments | (6,177,513 | ) | (45,672,151 | ) | (24,690,003 | ) | (174,431,657 | ) | ||||||||
Foreign currency related transactions | (5,637 | ) | (739,688 | ) | (58,002 | ) | (163,364 | ) | ||||||||
Net realized loss on investments and foreign currency related transactions | (6,183,150 | ) | (46,411,839 | ) | (24,748,005 | ) | (174,595,021 | ) | ||||||||
Net change in unrealized appreciation or depreciation on: | ||||||||||||||||
Investments | 22,037,349 | 66,957,891 | 42,969,293 | 274,382,718 | ||||||||||||
Foreign currency related transactions | 616 | 336,732 | 13,657 | 382 | ||||||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 22,037,965 | 67,294,623 | 42,982,950 | 274,383,100 | ||||||||||||
Net realized and unrealized gain on investments and foreign currency related transactions | 15,854,815 | 20,882,784 | 18,234,945 | 99,788,079 | ||||||||||||
Increase in net assets resulting from operations | $ | 16,004,997 | $ | 23,594,522 | $ | 18,769,743 | $ | 111,186,274 | ||||||||
* Foreign taxes withheld | $ | 113,903 | $ | 331,778 | $ | 107,468 | $ | 1,472,817 | ||||||||
(1) Dividends from affiliates | $ | — | $ | — | $ | — | $ | 121,772 |
57
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STATEMENTS OF OPERATIONS for the year ended October 31, 2009
ING | ||||||||||||
International | ING | ING | ||||||||||
SmallCap | International | International | ||||||||||
Multi-Manager | Value | Value Choice | ||||||||||
Fund | Fund | Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends, net of foreign taxes withheld*(1) | $ | 9,559,439 | $ | 50,011,328 | $ | 1,160,558 | ||||||
Interest* | 197,429 | 970,864 | — | |||||||||
Securities lending income, net | 89,488 | 216,330 | — | |||||||||
Total investment income | 9,846,356 | 51,198,522 | 1,160,558 | |||||||||
EXPENSES: | ||||||||||||
Investment management fees | 3,545,956 | 17,113,032 | 449,873 | |||||||||
Distribution and service fees: | ||||||||||||
Class A | 537,694 | 2,286,377 | 27,030 | |||||||||
Class B | 87,309 | 545,670 | 16,900 | |||||||||
Class C | 280,440 | 2,781,778 | 30,695 | |||||||||
Class O | 743 | — | — | |||||||||
Class Q | 69,878 | 40,124 | — | |||||||||
Transfer agent fees: | ||||||||||||
Class A | 367,950 | 1,622,054 | 22,207 | |||||||||
Class B | 21,286 | 114,198 | 3,464 | |||||||||
Class C | 67,118 | 593,100 | 6,279 | |||||||||
Class I | 105,963 | 579,207 | 5,492 | |||||||||
Class O | 706 | — | — | |||||||||
Class Q | 24,448 | 15,393 | — | |||||||||
Class W | 8,069 | 2 | — | |||||||||
Administrative service fees | 354,593 | 1,711,284 | 44,987 | |||||||||
Shareholder reporting expense | 162,164 | 447,165 | 8,498 | |||||||||
Registration fees | 114,419 | 105,386 | 57,983 | |||||||||
Professional fees | 69,186 | 240,443 | 29,075 | |||||||||
Custody and accounting expense | 381,238 | 695,360 | 13,362 | |||||||||
Directors fees | 24,090 | 63,145 | 1,941 | |||||||||
Miscellaneous expense | 29,502 | 689,342 | 13,580 | |||||||||
Interest expense | 14,892 | 42,404 | — | |||||||||
Tax expense | 145,436 | — | — | |||||||||
Total expenses | 6,413,080 | 29,685,464 | 731,366 | |||||||||
Net waived and reimbursed fees | (17,844 | ) | (183,314 | ) | (20,988 | ) | ||||||
Brokerage commission recapture | — | (23,542 | ) | (336 | ) | |||||||
Net expenses | 6,395,236 | 29,478,608 | 710,042 | |||||||||
Net investment income | 3,451,120 | 21,719,914 | 450,516 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments (net of Indian capital gains tax withheld)** | (201,927,087 | ) | (795,405,206 | ) | (15,201,329 | ) | ||||||
Foreign currency related transactions | 374,712 | 6,315,438 | 12,375 | |||||||||
Net realized loss on investments and foreign currency related transactions | (201,552,375 | ) | (789,089,768 | ) | (15,188,954 | ) | ||||||
Net change in unrealized appreciation or depreciation on: | ||||||||||||
Investments (net of Indian capital gains tax accrued)*** | 322,039,262 | 1,078,756,058 | 25,186,501 | |||||||||
Foreign currency related transactions | (61,669 | ) | (6,994,676 | ) | (18,306 | ) | ||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 321,977,593 | 1,071,761,382 | 25,168,195 | |||||||||
Net realized and unrealized gain on investments and foreign currency related transactions | 120,425,218 | 282,671,614 | 9,979,241 | |||||||||
Increase in net assets resulting from operations | $ | 123,876,338 | $ | 304,391,528 | $ | 10,429,757 | ||||||
* Foreign taxes withheld | $ | 879,096 | $ | 4,350,898 | $ | 97,217 | ||||||
** Foreign tax on sale of Indian investments | $ | 96,946 | $ | 29,044 | $ | — | ||||||
*** Foreign tax accrued on Indian Investments | $ | 8,286 | $ | — | $ | — | ||||||
(1) Dividends from affiliates | $ | 3,716 | $ | 168,206 | $ | 5,590 |
58
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STATEMENTS OF OPERATIONS for the year ended October 31, 2009
ING | ING | |||||||||||
ING | Global | Diversified | ||||||||||
Russia | Bond | International | ||||||||||
Fund | Fund | Fund | ||||||||||
INVESTMENT INCOME: | ||||||||||||
Dividends, net of foreign taxes withheld* | $ | 2,969,289 | $ | — | $ | — | ||||||
Dividends from affiliates | — | 76,062 | — | |||||||||
Dividends from affiliated underlying funds | — | — | 8,318,779 | |||||||||
Interest | 13,208 | 7,798,942 | — | |||||||||
Securities lending income, net | 95,712 | — | — | |||||||||
Total investment income | 3,078,209 | 7,875,004 | 8,318,779 | |||||||||
EXPENSES: | ||||||||||||
Investment management fees | 3,128,881 | 732,425 | — | |||||||||
Distribution and service fees: | ||||||||||||
Class A | 625,774 | 187,095 | 320,614 | |||||||||
Class B | — | 46,584 | 181,143 | |||||||||
Class C | — | 332,217 | 691,513 | |||||||||
Class O | — | 3,055 | 2,256 | |||||||||
Class R | — | — | 862 | |||||||||
Transfer agent fees: | ||||||||||||
Class A | 714,003 | 83,780 | 308,893 | |||||||||
Class B | — | 5,203 | 44,971 | |||||||||
Class C | — | 37,104 | 169,820 | |||||||||
Class I | — | 5,535 | 7,404 | |||||||||
Class O | — | 1,365 | 2,735 | |||||||||
Class R | — | — | 428 | |||||||||
Class W | — | 8 | 3,946 | |||||||||
Administrative service fees | 250,308 | 183,105 | 221,739 | |||||||||
Shareholder reporting expense | 141,351 | 63,873 | 120,866 | |||||||||
Registration fees | 41,000 | 82,779 | 118,200 | |||||||||
Professional fees | 104,924 | 49,873 | 84,640 | |||||||||
Custody and accounting expense | 470,312 | 140,165 | 19,403 | |||||||||
Directors fees | 19,016 | 4,872 | 14,463 | |||||||||
Miscellaneous expense | 33,675 | 28,399 | 20,741 | |||||||||
Interest expense | — | 773 | 109 | |||||||||
Total expenses | 5,529,244 | 1,988,210 | 2,334,746 | |||||||||
Net waived and reimbursed fees | — | (282,919 | ) | (856,932 | ) | |||||||
Net expenses | 5,529,244 | 1,705,291 | 1,477,814 | |||||||||
Net investment income (loss) | (2,451,035 | ) | 6,169,713 | 6,840,965 | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, INVESTMENTS IN AFFILIATED UNDERLYING FUNDS, FOREIGN CURRENCY RELATED TRANSACTIONS, FUTURES, SWAPS, AND WRITTEN OPTIONS | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments | (70,843,118 | ) | 3,009,860 | — | ||||||||
Sale of investments in affiliated underlying funds | — | — | (111,148,949 | ) | ||||||||
Foreign currency related transactions | (261,357 | ) | 912,034 | — | ||||||||
Futures | — | 1,337,965 | — | |||||||||
Swaps | — | 2,003,042 | — | |||||||||
Written options | — | 71,942 | — | |||||||||
Net realized gain (loss) on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, swaps, and written options | (71,104,475 | ) | 7,334,843 | (111,148,949 | ) | |||||||
Net change in unrealized appreciation or depreciation on: | ||||||||||||
Investments | 211,068,449 | 28,884,650 | — | |||||||||
Investments in affiliated underlying funds | — | — | 153,259,480 | |||||||||
Foreign currency related transactions | 164,593 | (306,310 | ) | — | ||||||||
Futures | — | (1,432,147 | ) | — | ||||||||
Swaps | — | (107,081 | ) | — | ||||||||
Written options | — | (2,311 | ) | — | ||||||||
Net change in unrealized appreciation or depreciation on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, swaps, and written options | 211,233,042 | 27,036,801 | 153,259,480 | |||||||||
Net realized and unrealized gain on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, swaps, and written options | 140,128,567 | 34,371,644 | 42,110,531 | |||||||||
Increase in net assets resulting from operations | $ | 137,677,532 | $ | 40,541,357 | $ | 48,951,496 | ||||||
* Foreign taxes withheld | $ | 677,085 | $ | — | $ | — |
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ING Global Equity Dividend Fund | ING Global Natural Resources Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 3,558,564 | $ | 9,635,589 | $ | 381,045 | $ | 524,746 | ||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (73,290,060 | ) | (30,844,710 | ) | (24,773,442 | ) | 6,564,298 | |||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 80,191,913 | (106,376,002 | ) | 43,943,525 | (68,185,043 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 10,460,417 | (127,585,123 | ) | 19,551,128 | (61,095,999 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (1,266,772 | ) | (4,919,694 | ) | (253,882 | ) | (1,172,269 | ) | ||||||||
Class B | (316,335 | ) | (1,311,619 | ) | — | — | ||||||||||
Class C | (724,052 | ) | (2,963,675 | ) | — | — | ||||||||||
Class I | (48,623 | ) | (16,676 | ) | (766 | ) | (25 | ) | ||||||||
Class O | (355,824 | ) | (927,480 | ) | — | — | ||||||||||
Class W | (310,735 | ) | (1,617 | ) | (194 | ) | — | |||||||||
Net realized gains: | ||||||||||||||||
Class A | — | (12,404,290 | ) | (5,296,232 | ) | (27,001,614 | ) | |||||||||
Class B | — | (3,985,012 | ) | — | — | |||||||||||
Class C | — | (8,739,875 | ) | — | — | |||||||||||
Class I | — | (77 | ) | (5,605 | ) | (401 | ) | |||||||||
Class O | — | (1,777,436 | ) | — | — | |||||||||||
Class W | — | — | (1,418 | ) | — | |||||||||||
Return of capital: | ||||||||||||||||
Class A | (89,224 | ) | (432,988 | ) | — | — | ||||||||||
Class B | (31,064 | ) | (143,749 | ) | — | — | ||||||||||
Class C | (71,099 | ) | (322,744 | ) | — | — | ||||||||||
Class I | (2,889 | ) | (1,297 | ) | — | — | ||||||||||
Class O | (25,247 | ) | (80,273 | ) | — | — | ||||||||||
Class W | (10,305 | ) | (86 | ) | — | — | ||||||||||
Total distributions | (3,252,169 | ) | (38,028,588 | ) | (5,558,097 | ) | (28,174,309 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 34,686,563 | 50,356,257 | 10,330,214 | 20,082,371 | ||||||||||||
Reinvestment of distributions | 1,993,528 | 26,212,767 | 4,970,473 | 25,092,370 | ||||||||||||
36,680,091 | 76,569,024 | 15,300,687 | 45,174,741 | |||||||||||||
Cost of shares redeemed | (54,101,898 | ) | (151,235,644 | ) | (12,664,477 | ) | (29,532,033 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (17,421,807 | ) | (74,666,620 | ) | 2,636,210 | 15,642,708 | ||||||||||
Net increase (decrease) in net assets | (10,213,559 | ) | (240,280,331 | ) | 16,629,241 | (73,627,600 | ) | |||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 148,983,945 | 389,264,276 | 83,741,335 | 157,368,935 | ||||||||||||
End of year | $ | 138,770,386 | $ | 148,983,945 | $ | 100,370,576 | $ | 83,741,335 | ||||||||
Undistributed net investment income (distributions in excess of net investment income) at end of year | $ | 11,181 | $ | (917 | ) | $ | 94,442 | $ | — | |||||||
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STATEMENTS OF CHANGES IN NET ASSETS
ING Global Real Estate Fund | ING Global Value Choice Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 33,848,865 | $ | 25,495,756 | $ | 467,178 | $ | 131,187 | ||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (503,179,773 | ) | (221,443,835 | ) | (11,803,835 | ) | 6,370,233 | |||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 688,315,397 | (761,700,130 | ) | 65,867,124 | (59,937,524 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 218,984,489 | (957,648,209 | ) | 54,530,467 | (53,436,104 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (15,188,664 | ) | (38,019,770 | ) | — | (330,676 | ) | |||||||||
Class B | (421,176 | ) | (1,594,287 | ) | — | — | ||||||||||
Class C | (2,475,980 | ) | (8,408,664 | ) | — | (28,732 | ) | |||||||||
Class I | (8,166,937 | ) | (6,003,778 | ) | — | (77,786 | ) | |||||||||
Class O | (258,598 | ) | (781,015 | ) | — | — | ||||||||||
Class Q | — | — | — | (15,997 | ) | |||||||||||
Class W | (3,115,932 | ) | (687,839 | ) | — | — | ||||||||||
Net realized gains: | ||||||||||||||||
Class A | (865,442 | ) | (1,914,849 | ) | — | — | ||||||||||
Class B | (29,080 | ) | (111,208 | ) | — | — | ||||||||||
Class C | (171,978 | ) | (570,013 | ) | — | — | ||||||||||
Class I | (327,550 | ) | (144,690 | ) | — | — | ||||||||||
Class O | (13,443 | ) | (44,110 | ) | — | — | ||||||||||
Class W | (52,833 | ) | — | — | — | |||||||||||
Return of capital: | ||||||||||||||||
Class A | (5,852,941 | ) | — | — | — | |||||||||||
Class B | (159,326 | ) | — | — | — | |||||||||||
Class C | (909,582 | ) | — | — | — | |||||||||||
Class I | (2,604,321 | ) | — | — | — | |||||||||||
Class O | (82,691 | ) | — | — | — | |||||||||||
Class W | (437,241 | ) | — | — | — | |||||||||||
Total distributions | (41,133,715 | ) | (58,280,223 | ) | — | (453,191 | ) | |||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 870,249,148 | 1,452,693,092 | 164,167,759 | 48,823,856 | ||||||||||||
Reinvestment of distributions | 33,200,656 | 45,987,277 | — | 305,217 | ||||||||||||
903,449,804 | 1,498,680,369 | 164,167,759 | 49,129,073 | |||||||||||||
Cost of shares redeemed | (694,752,679 | ) | (760,365,301 | ) | (115,689,883 | ) | (52,760,826 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 208,697,125 | 738,315,068 | 48,477,876 | (3,631,753 | ) | |||||||||||
Net increase (decrease) in net assets | 386,547,899 | (277,613,364 | ) | 103,008,343 | (57,521,048 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 1,301,958,081 | 1,579,571,445 | 73,162,111 | 130,683,159 | ||||||||||||
End of year | $ | 1,688,505,980 | $ | 1,301,958,081 | $ | 176,170,454 | $ | 73,162,111 | ||||||||
Undistributed net investment income (distributions in excess of net investment income) at end of year | $ | (5,402,287 | ) | $ | (42,244,315 | ) | $ | 1,036,069 | $ | (3,478 | ) | |||||
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STATEMENTS OF CHANGES IN NET ASSETS
ING Asia-Pacific Real Estate Fund | ING Emerging Countries Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 71,671 | $ | 85,018 | $ | 295,412 | $ | 4,137,274 | ||||||||
Net realized loss on investments and foreign currency related transactions | (3,273,897 | ) | (2,044,242 | ) | (41,421,824 | ) | (64,250,220 | ) | ||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 3,791,308 | (3,416,307 | ) | 85,926,451 | (112,328,277 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 589,082 | (5,375,531 | ) | 44,800,039 | (172,441,223 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (64,634 | ) | (59,954 | ) | (1,746,630 | ) | (2,167,642 | ) | ||||||||
Class B | (353 | ) | (206 | ) | (42,502 | ) | (57,378 | ) | ||||||||
Class C | (12,255 | ) | (8,444 | ) | (203,409 | ) | (291,243 | ) | ||||||||
Class I | (13 | ) | (12 | ) | (725,836 | ) | (594,705 | ) | ||||||||
Class Q | — | — | (146,524 | ) | (242,630 | ) | ||||||||||
Class W | — | — | (998 | ) | — | |||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | — | — | (5,291,718 | ) | |||||||||||
Class B | — | — | — | (440,600 | ) | |||||||||||
Class C | — | — | — | (1,550,833 | ) | |||||||||||
Class I | — | — | — | (1,150,536 | ) | |||||||||||
Class Q | — | — | — | (551,176 | ) | |||||||||||
Class W | — | — | — | (11 | ) | |||||||||||
Return of capital: | ||||||||||||||||
Class A | — | — | — | — | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | — | — | — | ||||||||||||
Class I | — | — | — | — | ||||||||||||
Class Q | — | — | — | — | ||||||||||||
Class W | — | — | — | — | ||||||||||||
Total distributions | (77,255 | ) | (68,616 | ) | (2,865,899 | ) | (12,338,472 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 993,978 | 13,425,429 | 29,894,212 | 76,881,539 | ||||||||||||
Payments by affiliates (Note 18) | — | — | 1,400,280 | — | ||||||||||||
Reinvestment of distributions | 7,495 | 7,752 | 2,564,649 | 10,561,811 | ||||||||||||
1,001,473 | 13,433,181 | 33,859,141 | 87,443,350 | |||||||||||||
Cost of shares redeemed | (3,771,209 | ) | (1,293,847 | ) | (40,483,488 | ) | (130,619,438 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (2,769,736 | ) | 12,139,334 | (6,624,347 | ) | (43,176,088 | ) | |||||||||
Net increase (decrease) in net assets | (2,257,909 | ) | 6,695,187 | 35,309,793 | (227,955,783 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 6,695,187 | — | 102,688,696 | 330,644,479 | ||||||||||||
End of year | $ | 4,437,278 | $ | 6,695,187 | $ | 137,998,489 | $ | 102,688,696 | ||||||||
Undistributed net investment income at end of year | $ | 337,370 | $ | 10,178 | $ | — | $ | 2,746,170 | ||||||||
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STATEMENTS OF CHANGES IN NET ASSETS
ING European Real Estate Fund | ING Foreign Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 78,704 | $ | 77,907 | $ | 2,433,639 | $ | 4,417,454 | ||||||||
Net realized loss on investments and foreign currency related transactions | (1,152,836 | ) | (1,169,983 | ) | (50,146,128 | ) | (111,925,743 | ) | ||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 2,231,676 | (1,679,254 | ) | 71,640,409 | (234,522,763 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 1,157,544 | (2,771,330 | ) | 23,927,920 | (342,031,052 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (181,768 | ) | (76,349 | ) | (4,924,315 | ) | — | |||||||||
Class B | (671 | ) | (197 | ) | (461,405 | ) | — | |||||||||
Class C | (2,381 | ) | (619 | ) | (2,720,389 | ) | — | |||||||||
Class I | (32 | ) | (15 | ) | (3,274,378 | ) | — | |||||||||
Class Q | — | — | (675 | ) | — | |||||||||||
Class W | — | — | (13,885 | ) | — | |||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | — | — | (20,918,671 | ) | |||||||||||
Class B | — | — | — | (3,020,180 | ) | |||||||||||
Class C | — | — | — | (13,831,219 | ) | |||||||||||
Class I | — | — | — | (6,602,918 | ) | |||||||||||
Class Q | — | — | — | (50,212 | ) | |||||||||||
Total distributions | (184,852 | ) | (77,180 | ) | (11,395,047 | ) | (44,423,200 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 2,521,942 | 6,945,489 | 45,668,879 | 177,808,541 | ||||||||||||
Reinvestment of distributions | 26,992 | 14,148 | 8,751,093 | 32,055,604 | ||||||||||||
2,548,934 | 6,959,637 | 54,419,972 | 209,864,145 | |||||||||||||
Cost of shares redeemed | (240,480 | ) | (895,509 | ) | (157,258,780 | ) | (224,896,551 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 2,308,454 | 6,064,128 | (102,838,808 | ) | (15,032,406 | ) | ||||||||||
Net increase (decrease) in net assets | 3,281,146 | 3,215,618 | (90,305,935 | ) | (401,486,658 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 3,215,618 | — | 340,733,808 | 742,220,466 | ||||||||||||
End of year | $ | 6,496,764 | $ | 3,215,618 | $ | 250,427,873 | $ | 340,733,808 | ||||||||
Undistributed net investment income at end of year | $ | 288,525 | $ | 95,557 | $ | 532,896 | $ | (3,840,375 | ) | |||||||
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STATEMENTS OF CHANGES IN NET ASSETS
ING Index Plus | ||||||||||||||||
ING Greater China Fund | International Equity Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 150,182 | $ | 99,166 | $ | 2,711,738 | $ | 5,128,927 | ||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (6,183,150 | ) | 2,354,386 | (46,411,839 | ) | (46,162,768 | ) | |||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 22,037,965 | (47,933,410 | ) | 67,294,623 | (75,447,161 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 16,004,997 | (45,479,858 | ) | 23,594,522 | (116,481,002 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (80,583 | ) | (206,726 | ) | (337,810 | ) | (28,649 | ) | ||||||||
Class B | (6,660 | ) | — | (28,973 | ) | (8,557 | ) | |||||||||
Class C | (8,156 | ) | — | (31,419 | ) | (13,088 | ) | |||||||||
Class I | (235 | ) | (210 | ) | (2,734,906 | ) | (2,125,491 | ) | ||||||||
Class O | (1,283 | ) | — | (1,555,036 | ) | (19 | ) | |||||||||
Net realized gains: | ||||||||||||||||
Class A | (1,583,601 | ) | (6,348,739 | ) | — | (221,431 | ) | |||||||||
Class B | (135,431 | ) | (607,794 | ) | — | (74,576 | ) | |||||||||
Class C | (166,482 | ) | (1,066,835 | ) | — | (113,554 | ) | |||||||||
Class I | (4,563 | ) | (4,310 | ) | — | (11,934,519 | ) | |||||||||
Class O | (24,941 | ) | — | — | (106 | ) | ||||||||||
Total distributions | (2,011,935 | ) | (8,234,614 | ) | (4,688,144 | ) | (14,519,990 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 28,491,821 | 21,915,224 | 16,412,648 | 110,662,967 | ||||||||||||
Payments by affiliates (Note 18) | — | — | 497,810 | — | ||||||||||||
Proceeds from shares issued in merger (Note 14) | — | — | — | 128,431,314 | ||||||||||||
Reinvestment of distributions | 1,500,221 | 5,628,333 | 3,297,835 | 14,382,164 | ||||||||||||
29,992,042 | 27,543,557 | 20,208,293 | 253,476,445 | |||||||||||||
Cost of shares redeemed | (23,362,569 | ) | (42,164,045 | ) | (37,853,048 | ) | (136,788,066 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 6,629,473 | (14,620,488 | ) | (17,644,755 | ) | 116,688,379 | ||||||||||
Net increase (decrease) in net assets | 20,622,535 | (68,334,960 | ) | 1,261,623 | (14,312,613 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 25,320,600 | 93,655,560 | 108,704,814 | 123,017,427 | ||||||||||||
End of year | $ | 45,943,135 | $ | 25,320,600 | $ | 109,966,437 | $ | 108,704,814 | ||||||||
Undistributed net investment income at end of year | $ | 675,252 | $ | 1,754,292 | $ | 1,980,573 | $ | 4,340,300 | ||||||||
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STATEMENTS OF CHANGES IN NET ASSETS
ING International Capital | ||||||||||||||||
Appreciation Fund | ING International Real Estate Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 534,798 | $ | 1,310,333 | $ | 11,398,195 | $ | 11,006,499 | ||||||||
Net realized loss on investments and foreign currency related transactions | (24,748,005 | ) | (8,360,001 | ) | (174,595,021 | ) | (92,273,326 | ) | ||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 42,982,950 | (62,269,125 | ) | 274,383,100 | (314,335,293 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 18,769,743 | (69,318,793 | ) | 111,186,274 | (395,602,120 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (27,773 | ) | (46,790 | ) | (1,805,423 | ) | (6,762,764 | ) | ||||||||
Class B | (2,107 | ) | (6,221 | ) | (56,721 | ) | (208,426 | ) | ||||||||
Class C | (645 | ) | (7,324 | ) | (397,980 | ) | (2,311,512 | ) | ||||||||
Class I | (1,471,342 | ) | (1,713,778 | ) | (8,854,996 | ) | (9,218,250 | ) | ||||||||
Class W | — | — | (22,546 | ) | (3,394 | ) | ||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | (171,474 | ) | — | — | |||||||||||
Class B | — | (29,527 | ) | — | — | |||||||||||
Class C | — | (33,222 | ) | — | — | |||||||||||
Class I | — | (4,964,217 | ) | — | — | |||||||||||
Return of capital: | ||||||||||||||||
Class A | (1,123 | ) | — | — | (3,653,580 | ) | ||||||||||
Class B | (174 | ) | — | — | (146,325 | ) | ||||||||||
Class C | (277 | ) | — | — | (1,612,691 | ) | ||||||||||
Class I | (34,524 | ) | — | — | (4,371,301 | ) | ||||||||||
Class W | — | — | — | (1,599 | ) | |||||||||||
Total distributions | (1,537,965 | ) | (6,972,553 | ) | (11,137,666 | ) | (28,289,842 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 13,295,441 | 24,115,204 | 244,320,032 | 609,238,402 | ||||||||||||
Proceeds from shares issued in merger (Note 14) | 54,440,262 | — | — | — | ||||||||||||
Reinvestment of distributions | 1,520,985 | 6,792,519 | 4,243,297 | 13,626,372 | ||||||||||||
69,256,688 | 30,907,723 | 248,563,329 | 622,864,774 | |||||||||||||
Cost of shares redeemed | (27,912,810 | ) | (51,860,888 | ) | (232,704,593 | ) | (309,952,586 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 41,343,878 | (20,953,165 | ) | 15,858,736 | 312,912,188 | |||||||||||
Net increase (decrease) in net assets | 58,575,656 | (97,244,511 | ) | 115,907,344 | (110,979,774 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 50,161,716 | 147,406,227 | 420,821,427 | 531,801,201 | ||||||||||||
End of year | $ | 108,737,372 | $ | 50,161,716 | $ | 536,728,771 | $ | 420,821,427 | ||||||||
Undistributed net investment income (distributions in excess of net investment income) at end of year | $ | 1,452 | $ | 1,056,223 | $ | 31,518,711 | $ | (10,247 | ) | |||||||
65
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
ING International SmallCap | ||||||||||||||||
Multi-Manager Fund | ING International Value Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 3,451,120 | $ | 11,128,871 | $ | 21,719,914 | $ | 76,380,681 | ||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (201,552,375 | ) | (158,816,436 | ) | (789,089,768 | ) | 505,106,913 | |||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 321,977,593 | (509,074,218 | ) | 1,071,761,382 | (2,414,730,218 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 123,876,338 | (656,761,783 | ) | 304,391,528 | (1,833,242,624 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (4,710,212 | ) | (2,482,496 | ) | (29,625,296 | ) | (20,593,112 | ) | ||||||||
Class B | (75,770 | ) | — | (1,344,909 | ) | (250,157 | ) | |||||||||
Class C | (548,565 | ) | — | (7,248,733 | ) | (2,488,818 | ) | |||||||||
Class I | (4,347,655 | ) | (2,905,473 | ) | (27,711,835 | ) | (29,292,792 | ) | ||||||||
Class O | (3,592 | ) | — | — | — | |||||||||||
Class Q | (1,075,645 | ) | (658,389 | ) | (477,615 | ) | (353,269 | ) | ||||||||
Class W | (349,538 | ) | — | — | — | |||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | (60,574,187 | ) | (127,294,102 | ) | (304,767,165 | ) | |||||||||
Class B | — | (7,140,703 | ) | (11,916,381 | ) | (41,150,109 | ) | |||||||||
Class C | — | (12,894,884 | ) | (46,020,354 | ) | (110,803,630 | ) | |||||||||
Class I | — | (43,991,753 | ) | (100,409,222 | ) | (313,841,980 | ) | |||||||||
Class O | — | (1 | ) | — | — | |||||||||||
Class Q | — | (14,059,252 | ) | (1,708,325 | ) | (3,792,184 | ) | |||||||||
Class W | — | (131 | ) | — | — | |||||||||||
Total distributions | (11,110,977 | ) | (144,707,269 | ) | (353,756,772 | ) | (827,333,216 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 113,096,459 | 267,975,778 | 392,893,693 | 671,204,202 | ||||||||||||
Payments by affiliates (Note 18) | 2,661,920 | — | 955,441 | — | ||||||||||||
Reinvestment of distributions | 7,610,077 | 106,441,115 | 252,944,813 | 592,109,119 | ||||||||||||
123,368,456 | 374,416,893 | 646,793,947 | 1,263,313,321 | |||||||||||||
Cost of shares redeemed | (204,983,628 | ) | (378,623,842 | ) | (1,015,622,982 | ) | (1,909,403,374 | ) | ||||||||
Net decrease in net assets resulting from capital share transactions | (81,615,172 | ) | (4,206,949 | ) | (368,829,035 | ) | (646,090,053 | ) | ||||||||
Net increase (decrease) in net assets | 31,150,189 | (805,676,001 | ) | (418,194,279 | ) | (3,306,665,893 | ) | |||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 395,631,418 | 1,201,307,419 | 2,092,111,581 | 5,398,777,474 | ||||||||||||
End of year | $ | 426,781,607 | $ | 395,631,418 | $ | 1,673,917,302 | $ | 2,092,111,581 | ||||||||
Undistributed net investment income at end of year | $ | 5,637,485 | $ | 10,631,527 | $ | 26,247,882 | $ | 63,338,094 | ||||||||
66
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STATEMENTS OF CHANGES IN NET ASSETS
ING International Value Choice Fund | ING Russia Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 450,516 | $ | 492,702 | $ | (2,451,035 | ) | $ | (4,900,253 | ) | ||||||
Net realized gain (loss) on investments and foreign currency related transactions | (15,188,954 | ) | (401,390 | ) | (71,104,475 | ) | 165,557,937 | |||||||||
Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 25,168,195 | (35,708,799 | ) | 211,233,042 | (675,721,202 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 10,429,757 | (35,617,487 | ) | 137,677,532 | (515,063,518 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (87,098 | ) | (112,875 | ) | — | — | ||||||||||
Class B | (498 | ) | (307 | ) | — | — | ||||||||||
Class C | (897 | ) | — | — | — | |||||||||||
Class I | (532,022 | ) | (693,103 | ) | — | — | ||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | (2,221,665 | ) | (82,435,965 | ) | (137,654,710 | ) | |||||||||
Class B | — | (507,826 | ) | — | — | |||||||||||
Class C | — | (656,889 | ) | — | — | |||||||||||
Class I | — | (8,389,969 | ) | — | — | |||||||||||
Total distributions | (620,515 | ) | (12,582,634 | ) | (82,435,965 | ) | (137,654,710 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 14,285,055 | 29,490,166 | 64,172,973 | 221,879,155 | ||||||||||||
Reinvestment of distributions | 611,830 | 11,960,549 | 71,291,248 | 116,874,956 | ||||||||||||
14,896,885 | 41,450,715 | 135,464,221 | 338,754,111 | |||||||||||||
Redemption fee proceeds (Note 4) | — | — | 262,776 | 1,344,090 | ||||||||||||
Cost of shares redeemed | (24,592,282 | ) | (29,962,847 | ) | (78,843,963 | ) | (348,756,344 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (9,695,397 | ) | 11,487,868 | 56,883,034 | (8,658,143 | ) | ||||||||||
Net increase (decrease) in net assets | 113,845 | (36,712,253 | ) | 112,124,601 | (661,376,371 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 49,034,249 | 85,746,502 | 261,127,369 | 922,503,740 | ||||||||||||
End of year | $ | 49,148,094 | $ | 49,034,249 | $ | 373,251,970 | $ | 261,127,369 | ||||||||
Undistributed net investment income at end of year | $ | 313,098 | $ | 557,203 | $ | — | $ | — | ||||||||
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STATEMENTS OF CHANGES IN NET ASSETS
ING Global Bond Fund | ING Diversified International Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
FROM OPERATIONS: | ||||||||||||||||
Net investment income | $ | 6,169,713 | $ | 2,043,534 | $ | 6,840,965 | $ | 5,865,573 | ||||||||
Net realized gain (loss) on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, swaps, and written options | 7,334,843 | 3,186,716 | (111,148,949 | ) | (18,522,580 | ) | ||||||||||
Net change in unrealized appreciation or depreciation on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, swaps, and written options | 27,036,801 | (7,619,480 | ) | 153,259,480 | (292,969,322 | ) | ||||||||||
Increase (decrease) in net assets resulting from operations | 40,541,357 | (2,389,230 | ) | 48,951,496 | (305,626,329 | ) | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (1,002,341 | ) | (3,359,515 | ) | (16,890,294 | ) | (6,883,232 | ) | ||||||||
Class B | (48,083 | ) | (100,198 | ) | (2,007,249 | ) | (519,915 | ) | ||||||||
Class C | (369,590 | ) | (710,709 | ) | (7,933,560 | ) | (2,156,592 | ) | ||||||||
Class I | (2,185,382 | ) | (9,087 | ) | (585,985 | ) | (586 | ) | ||||||||
Class O | (39,407 | ) | (1,127 | ) | (33,579 | ) | — | |||||||||
Class R | — | — | (21,054 | ) | (6,279 | ) | ||||||||||
Class W | (6,692 | ) | — | (182,219 | ) | — | ||||||||||
Net realized gains: | ||||||||||||||||
Class A | (1,641,363 | ) | (369,378 | ) | — | (2,346,495 | ) | |||||||||
Class B | (99,095 | ) | (6,552 | ) | — | (269,552 | ) | |||||||||
Class C | (709,315 | ) | (30,696 | ) | — | (1,057,058 | ) | |||||||||
Class I | (7,774 | ) | (12 | ) | — | (180 | ) | |||||||||
Class O | (6,537 | ) | — | — | — | |||||||||||
Class R | — | — | — | (2,520 | ) | |||||||||||
Total distributions | (6,115,579 | ) | (4,587,274 | ) | (27,653,940 | ) | (13,242,409 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Net proceeds from sale of shares | 230,053,379 | 125,112,248 | 36,087,099 | 166,546,295 | ||||||||||||
Reinvestment of distributions | 4,998,292 | 2,140,936 | 21,285,904 | 9,865,969 | ||||||||||||
235,051,671 | 127,253,184 | 57,373,003 | 176,412,264 | |||||||||||||
Cost of shares redeemed | (87,745,529 | ) | (37,864,589 | ) | (117,220,417 | ) | (185,570,371 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 147,306,142 | 89,388,595 | (59,847,414 | ) | (9,158,107 | ) | ||||||||||
Net increase (decrease) in net assets | 181,731,920 | 82,412,091 | (38,549,858 | ) | (328,026,845 | ) | ||||||||||
NET ASSETS: | ||||||||||||||||
Beginning of year | 113,269,524 | 30,857,433 | 268,128,583 | 596,155,428 | ||||||||||||
End of year | $ | 295,001,444 | $ | 113,269,524 | $ | 229,578,725 | $ | 268,128,583 | ||||||||
Undistributed net investment income at end of year | $ | 7,124,031 | $ | 23,882 | $ | — | $ | 20,777,313 | ||||||||
68
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FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Equity Dividend Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 8 | .77 | 0 | .26• | 0 | .62 | 0 | .88 | 0 | .22 | — | 0 | .02 | 0 | .24 | — | — | 9 | .41 | 10 | .41 | 1 | .54 | 1 | .40 | 1 | .40 | 3 | .24 | 46,871 | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 16 | .84 | 0 | .56 | (6 | .84) | (6 | .28) | 0 | .54 | 1 | .20 | 0 | .05 | 1 | .79 | — | — | 8 | .77 | (40 | .84) | 1 | .42 | 1 | .41 | 1 | .41 | 3 | .85 | 63,134 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 15 | .76 | 0 | .54• | 1 | .84 | 2 | .38 | 0 | .55 | 0 | .75 | — | 1 | .30 | — | — | 16 | .84 | 15 | .80 | 1 | .26 | 1 | .26 | 1 | .26 | 3 | .31 | 182,669 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 13 | .07 | 0 | .54 | 2 | .85 | 3 | .39 | 0 | .51 | 0 | .19 | — | 0 | .70 | — | — | 15 | .76 | 26 | .56 | 1 | .27 | 1 | .33 | 1 | .33 | 3 | .76 | 108,911 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .41 | 0 | .47• | 0 | .92 | 1 | .39 | 0 | .54 | 0 | .19 | — | 0 | .73 | — | — | 13 | .07 | 11 | .45 | 1 | .28 | 1 | .40 | 1 | .40 | 3 | .60 | 73,186 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 8 | .74 | 0 | .21 | 0 | .61 | 0 | .82 | 0 | .16 | — | 0 | .02 | 0 | .18 | — | — | 9 | .38 | 9 | .60 | 2 | .29 | 2 | .15 | 2 | .15 | 2 | .48 | 16,147 | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 16 | .79 | 0 | .46 | (6 | .82) | (6 | .36) | 0 | .44 | 1 | .20 | 0 | .05 | 1 | .69 | — | — | 8 | .74 | (41 | .32) | 2 | .17 | 2 | .16 | 2 | .16 | 3 | .11 | 21,311 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 15 | .72 | 0 | .39 | 1 | .86 | 2 | .25 | 0 | .43 | 0 | .75 | — | 1 | .18 | — | — | 16 | .79 | 14 | .94 | 2 | .01 | 2 | .01 | 2 | .01 | 2 | .53 | 58,093 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 13 | .05 | 0 | .43 | 2 | .84 | 3 | .27 | 0 | .41 | 0 | .19 | — | 0 | .60 | — | — | 15 | .72 | 25 | .55 | 2 | .02 | 2 | .08 | 2 | .08 | 3 | .05 | 44,936 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .37 | 0 | .37• | 0 | .92 | 1 | .29 | 0 | .42 | 0 | .19 | — | 0 | .61 | — | — | 13 | .05 | 10 | .65 | 2 | .03 | 2 | .15 | 2 | .15 | 2 | .83 | 28,811 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 8 | .72 | 0 | .21 | 0 | .61 | 0 | .82 | 0 | .16 | — | 0 | .02 | 0 | .18 | — | — | 9 | .36 | 9 | .63 | 2 | .29 | 2 | .15 | 2 | .15 | 2 | .48 | 37,687 | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 16 | .75 | 0 | .44 | (6 | .78) | (6 | .34) | 0 | .44 | 1 | .20 | 0 | .05 | 1 | .69 | — | — | 8 | .72 | (41 | .29) | 2 | .17 | 2 | .16 | 2 | .16 | 3 | .13 | 48,567 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 15 | .69 | 0 | .39 | 1 | .86 | 2 | .25 | 0 | .44 | 0 | .75 | — | 1 | .19 | — | — | 16 | .75 | 14 | .94 | 2 | .01 | 2 | .01 | 2 | .01 | 2 | .54 | 124,765 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 13 | .02 | 0 | .43 | 2 | .84 | 3 | .27 | 0 | .41 | 0 | .19 | — | 0 | .60 | — | — | 15 | .69 | 25 | .62 | 2 | .02 | 2 | .08 | 2 | .08 | 3 | .03 | 77,426 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .37 | 0 | .37• | 0 | .90 | 1 | .27 | 0 | .43 | 0 | .19 | — | 0 | .62 | — | — | 13 | .02 | 10 | .51 | 2 | .03 | 2 | .15 | 2 | .15 | 2 | .82 | 48,965 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 8 | .78 | 0 | .29• | 0 | .63 | 0 | .92 | 0 | .26 | — | 0 | .02 | 0 | .28 | — | — | 9 | .42 | 10 | .92 | 1 | .07 | 0 | .93 | 0 | .93 | 3 | .61 | 1,824 | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 16 | .83 | 0 | .47 | (6 | .68) | (6 | .21) | 0 | .59 | 1 | .20 | 0 | .05 | 1 | .84 | — | — | 8 | .78 | (40 | .49) | 1 | .07 | 1 | .06 | 1 | .06 | 3 | .16 | 1,207 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-01-07(4)–10-31-07 | 15 | .81 | 0 | .12• | 1 | .03 | 1 | .15 | 0 | .13 | — | — | 0 | .13 | — | — | 16 | .83 | 7 | .26 | 0 | .90 | 0 | .90 | 0 | .90 | 2 | .98 | 1 | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 8 | .76 | 0 | .26• | 0 | .62 | 0 | .88 | 0 | .22 | — | 0 | .02 | 0 | .24 | — | — | 9 | .40 | 10 | .41 | 1 | .54 | 1 | .40 | 1 | .40 | 3 | .18 | 14,920 | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 16 | .83 | 0 | .51• | (6 | .78) | (6 | .27) | 0 | .55 | 1 | .20 | 0 | .05 | 1 | .80 | — | — | 8 | .76 | (40 | .83) | 1 | .42 | 1 | .41 | 1 | .41 | 3 | .95 | 14,695 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-15-06(4)–10-31-07 | 15 | .86 | 0 | .55• | 1 | .74 | 2 | .29 | 0 | .57 | 0 | .75 | — | 1 | .32 | — | — | 16 | .83 | 15 | .12 | 1 | .26 | 1 | .26 | 1 | .26 | 3 | .46 | 23,737 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 9 | .53 | 0 | .26• | 0 | .74 | 1 | .00 | 0 | .26 | — | 0 | .02 | 0 | .28 | — | — | 10 | .25 | 10 | .92 | 1 | .07 | 0 | .93 | 0 | .93 | 2 | .68 | 21,321 | 93 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 14 | .51 | 0 | .35 | (4 | .83) | (4 | .48) | 0 | .46 | — | 0 | .04 | 0 | .50 | — | — | 9 | .53 | (31 | .78) | 1 | .07 | 1 | .06 | 1 | .06 | 3 | .38 | 70 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Natural Resources Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .74 | 0 | .03 | 1 | .50 | 1 | .53 | 0 | .02 | 0 | .43 | — | 0 | .45 | — | — | 7 | .82 | 24 | .38 | 1 | .64 | 1 | .64† | 1 | .64† | 0 | .45† | 99,674 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .18 | 0 | .05 | (4 | .92) | (4 | .87) | 0 | .11 | 2 | .46 | — | 2 | .57 | — | — | 6 | .74 | (41 | .12) | 1 | .46 | 1 | .46† | 1 | .46† | 0 | .37† | 83,713 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 10 | .46 | (0 | .03) | 4 | .36 | 4 | .33 | 0 | .26 | 0 | .35 | — | 0 | .61 | — | — | 14 | .18 | 43 | .22 | 1 | .44 | 1 | .44† | 1 | .44† | (0 | .28)† | 157,367 | 121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 7 | .34 | (0 | .06) | 3 | .20 | 3 | .14 | 0 | .02 | — | — | 0 | .02 | — | — | 10 | .46 | 42 | .76 | 1 | .42 | 1 | .42 | 1 | .42 | (0 | .61) | 121,112 | 158 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 7 | .09 | (0 | .06) | 0 | .54 | 0 | .48 | 0 | .23 | — | — | 0 | .23 | — | — | 7 | .34 | 6 | .81 | 1 | .56 | 1 | .56 | 1 | .56 | (0 | .77) | 87,441 | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .75 | 0 | .05• | 1 | .52 | 1 | .57 | 0 | .06 | 0 | .43 | — | 0 | .49 | — | — | 7 | .83 | 25 | .10 | 1 | .19 | 1 | .19† | 1 | .19† | 0 | .68† | 510 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .19 | 0 | .12• | (4 | .95) | (4 | .83) | 0 | .15 | 2 | .46 | — | 2 | .61 | — | — | 6 | .75 | (40 | .87) | 1 | .11 | 1 | .11† | 1 | .11† | 1 | .04† | 1 | 116 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-01-07(4)–10-31-07 | 12 | .07 | 0 | .00* | 2 | .12 | 2 | .12 | — | — | — | — | — | — | 14 | .19 | 17 | .56 | 1 | .08 | 1 | .08† | 1 | .08† | 0 | .09† | 2 | 121 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 8 | .39 | 0 | .05• | 1 | .91 | 1 | .96 | 0 | .06 | 0 | .43 | — | 0 | .49 | — | — | 9 | .86 | 24 | .84 | 1 | .19 | 1 | .19† | 1 | .19† | 0 | .64† | 186 | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 12 | .84 | 0 | .03• | (4 | .48) | (4 | .45) | — | — | — | — | — | — | 8 | .39 | (34 | .66) | 1 | .11 | 1 | .11† | 1 | .11† | 0 | .38† | 27 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
69
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 12 | .56 | 0 | .32• | 1 | .75 | 2 | .07 | 0 | .27 | 0 | .01 | 0 | .09 | 0 | .37 | — | — | 14 | .26 | 17 | .37 | 1 | .49 | 1 | .49† | 1 | .49† | 2 | .74† | 893,470 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .19 | 0 | .33• | (11 | .19) | (10 | .86) | 0 | .73 | 0 | .04 | — | 0 | .77 | — | — | 12 | .56 | (46 | .00) | 1 | .41 | 1 | .41† | 1 | .41† | 1 | .76† | 836,314 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 22 | .23 | 0 | .22• | 3 | .13 | 3 | .35 | 1 | .08 | 0 | .31 | — | 1 | .39 | — | — | 24 | .19 | 15 | .44 | 1 | .30 | 1 | .30 | 1 | .30 | 0 | .96 | 1,115,493 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 17 | .14 | 0 | .20• | 6 | .41 | 6 | .61 | 0 | .46 | 1 | .06 | — | 1 | .52 | — | — | 22 | .23 | 41 | .09 | 1 | .39 | 1 | .39 | 1 | .39 | 1 | .04 | 467,405 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 15 | .40 | 0 | .26•(b) | 2 | .94(b) | 3 | .20 | 0 | .54 | 0 | .92 | — | 1 | .46 | — | — | 17 | .14 | 21 | .95 | 1 | .50 | 1 | .59 | 1 | .59 | 1 | .58(b) | 138,314 | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .66 | 0 | .20• | 1 | .46 | 1 | .66 | 0 | .22 | 0 | .01 | 0 | .08 | 0 | .31 | — | — | 12 | .01 | 16 | .39 | 2 | .24 | 2 | .24† | 2 | .24† | 2 | .06† | 22,218 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 20 | .67 | 0 | .16• | (9 | .52) | (9 | .36) | 0 | .61 | 0 | .04 | — | 0 | .65 | — | — | 10 | .66 | (46 | .40) | 2 | .16 | 2 | .16† | 2 | .16† | 0 | .99† | 23,663 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 19 | .20 | 0 | .04• | 2 | .69 | 2 | .73 | 0 | .95 | 0 | .31 | — | 1 | .26 | — | — | 20 | .67 | 14 | .59 | 2 | .05 | 2 | .05 | 2 | .05 | 0 | .22 | 57,837 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 15 | .01 | 0 | .05• | 5 | .56 | 5 | .61 | 0 | .36 | 1 | .06 | — | 1 | .42 | — | — | 19 | .20 | 40 | .04 | 2 | .14 | 2 | .14 | 2 | .14 | 0 | .31 | 31,677 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 13 | .67 | 0 | .12•(b) | 2 | .59(b) | 2 | .71 | 0 | .45 | 0 | .92 | — | 1 | .37 | — | — | 15 | .01 | 21 | .05 | 2 | .25 | 2 | .34 | 2 | .34 | 0 | .79(b) | 12,302 | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .22 | 0 | .21• | 1 | .54 | 1 | .75 | 0 | .22 | 0 | .01 | 0 | .07 | 0 | .30 | — | — | 12 | .67 | 16 | .40 | 2 | .24 | 2 | .24† | 2 | .24† | 2 | .03† | 149,943 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 21 | .70 | 0 | .16 | (9 | .99) | (9 | .83) | 0 | .61 | 0 | .04 | — | 0 | .65 | — | — | 11 | .22 | (46 | .38) | 2 | .16 | 2 | .16† | 2 | .16† | 0 | .99† | 153,110 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 20 | .10 | 0 | .04• | 2 | .82 | 2 | .86 | 0 | .95 | 0 | .31 | — | 1 | .26 | — | — | 21 | .70 | 14 | .57 | 2 | .05 | 2 | .05 | 2 | .05 | 0 | .20 | 303,235 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 15 | .65 | 0 | .05• | 5 | .82 | 5 | .87 | 0 | .36 | 1 | .06 | — | 1 | .42 | — | — | 20 | .10 | 40 | .06 | 2 | .14 | 2 | .14 | 2 | .14 | 0 | .29 | 109,197 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 14 | .19 | 0 | .12•(b) | 2 | .71(b) | 2 | .83 | 0 | .45 | 0 | .92 | — | 1 | .37 | — | — | 15 | .65 | 21 | .11 | 2 | .25 | 2 | .34 | 2 | .34 | 0 | .78(b) | 27,989 | 91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 12 | .57 | 0 | .35• | 1 | .76 | 2 | .11 | 0 | .30 | 0 | .01 | 0 | .11 | 0 | .42 | — | — | 14 | .26 | 17 | .76 | 1 | .12 | 1 | .12† | 1 | .12† | 2 | .96† | 457,742 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .21 | 0 | .38• | (11 | .17) | (10 | .79) | 0 | .81 | 0 | .04 | — | 0 | .85 | — | — | 12 | .57 | (45 | .77) | 1 | .01 | 1 | .01† | 1 | .01† | 2 | .12† | 225,881 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 22 | .23 | 0 | .28• | 3 | .16 | 3 | .44 | 1 | .15 | 0 | .31 | — | 1 | .46 | — | — | 24 | .21 | 15 | .88 | 0 | .95 | 0 | .95 | 0 | .95 | 1 | .24 | 76,869 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 17 | .14 | 0 | .28• | 6 | .39 | 6 | .67 | 0 | .52 | 1 | .06 | — | 1 | .58 | — | — | 22 | .23 | 41 | .49 | 1 | .06 | 1 | .06 | 1 | .06 | 1 | .40 | 11,226 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-03-05(4)–10-31-05 | 16 | .32 | 0 | .14•(b) | 0 | .86(b) | 1 | .00 | 0 | .18 | — | — | 0 | .18 | — | — | 17 | .14 | 6 | .14 | 1 | .22 | 1 | .30 | 1 | .30 | 0 | .85(b) | 1,681 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 12 | .55 | 0 | .32• | 1 | .76 | 2 | .08 | 0 | .27 | 0 | .01 | 0 | .09 | 0 | .37 | — | — | 14 | .26 | 17 | .38 | 1 | .49 | 1 | .49† | 1 | .49† | 2 | .76† | 13,575 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .19 | 0 | .33• | (11 | .19) | (10 | .86) | 0 | .74 | 0 | .04 | — | 0 | .78 | — | — | 12 | .55 | (46 | .03) | 1 | .41 | 1 | .41† | 1 | .41† | 1 | .74† | 12,758 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-15-06(4)–10-31-07 | 22 | .20 | 0 | .20• | 3 | .20 | 3 | .40 | 1 | .10 | 0 | .31 | — | 1 | .41 | — | — | 24 | .19 | 15 | .68 | 1 | .30 | 1 | .30 | 1 | .30 | 0 | .90 | 26,137 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 12 | .59 | 0 | .34• | 1 | .78 | 2 | .12 | 0 | .31 | 0 | .01 | 0 | .11 | 0 | .43 | — | — | 14 | .28 | 17 | .78 | 1 | .12 | 1 | .12† | 1 | .12† | 2 | .88† | 151,558 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 19 | .29 | 0 | .28 | (6 | .65) | (6 | .37) | 0 | .33 | — | — | 0 | .33 | — | — | 12 | .59 | (33 | .53) | 1 | .01 | 1 | .01† | 1 | .01† | 1 | .95† | 50,233 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Value Choice Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .84 | 0 | .12• | 9 | .29 | 9 | .41 | — | — | — | — | — | — | 26 | .25 | 55 | .88 | 1 | .58 | 1 | .50† | 1 | .49† | 0 | .56† | 107,499 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 28 | .40 | 0 | .11 | (11 | .51) | (11 | .40) | 0 | .16 | — | — | 0 | .16 | — | — | 16 | .84 | (40 | .34) | 1 | .62 | 1 | .55† | 1 | .53† | 0 | .41† | 38,258 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 21 | .72 | 0 | .01 | 6 | .67 | 6 | .68 | — | — | — | — | — | — | 28 | .40 | 30 | .76 | 1 | .77 | 1 | .82 | 1 | .81 | 0 | .04 | 58,600 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 18 | .16 | 0 | .08 | 3 | .62 | 3 | .70 | 0 | .14 | — | — | 0 | .14 | — | — | 21 | .72 | 20 | .48 | 1 | .78 | 1 | .78 | 1 | .77 | 0 | .40 | 47,305 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 15 | .96 | 0 | .09 | 2 | .11 | 2 | .20 | — | — | — | — | 0 | .00* | — | 18 | .16 | 13 | .78(a) | 1 | .90 | 1 | .85 | 1 | .85 | 0 | .46 | 41,941 | 129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 18 | .10 | (0 | .05) | 9 | .95 | 9 | .90 | — | — | — | — | — | — | 28 | .00 | 54 | .70 | 2 | .33 | 2 | .25† | 2 | .24† | (0 | .19)† | 7,105 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 30 | .58 | (0 | .11)• | (12 | .37) | (12 | .48) | — | — | — | — | — | — | 18 | .10 | (40 | .81) | 2 | .37 | 2 | .30† | 2 | .28† | (0 | .39)† | 6,722 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 23 | .54 | (0 | .17)• | 7 | .21 | 7 | .04 | — | — | — | — | — | — | 30 | .58 | 29 | .91 | 2 | .42 | 2 | .47 | 2 | .46 | (0 | .62) | 22,049 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 19 | .67 | (0 | .04) | 3 | .91 | 3 | .87 | — | — | — | — | — | — | 23 | .54 | 19 | .67 | 2 | .43 | 2 | .43 | 2 | .42 | (0 | .25) | 21,364 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 17 | .39 | (0 | .04) | 2 | .32 | 2 | .28 | — | — | — | — | 0 | .00* | — | 19 | .67 | 13 | .11(a) | 2 | .55 | 2 | .50 | 2 | .50 | (0 | .19) | 23,483 | 129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
70
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Value Choice Fund (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .08 | (0 | .05) | 8 | .85 | 8 | .80 | — | — | — | — | — | — | 24 | .88 | 54 | .73 | 2 | .33 | 2 | .25† | 2 | .24† | (0 | .30)† | 48,308 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 27 | .18 | (0 | .09) | (10 | .99) | (11 | .08) | 0 | .02 | — | — | 0 | .02 | — | — | 16 | .08 | (40 | .79) | 2 | .37 | 2 | .30† | 2 | .28† | (0 | .36)† | 21,045 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 20 | .93 | (0 | .14)• | 6 | .39 | 6 | .25 | — | — | — | — | — | — | 27 | .18 | 29 | .86 | 2 | .42 | 2 | .47 | 2 | .46 | (0 | .60) | 39,537 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 17 | .50 | (0 | .05) | 3 | .50 | 3 | .45 | 0 | .02 | — | — | 0 | .02 | — | — | 20 | .93 | 19 | .73 | 2 | .43 | 2 | .43 | 2 | .42 | (0 | .26) | 31,612 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 15 | .48 | (0 | .04) | 2 | .06 | 2 | .02 | — | — | — | — | 0 | .00* | — | 17 | .50 | 13 | .05(a) | 2 | .55 | 2 | .50 | 2 | .50 | (0 | .19) | 30,918 | 129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .92 | 0 | .18• | 9 | .36 | 9 | .54 | — | — | — | — | — | — | 26 | .46 | 56 | .38 | 1 | .18 | 1 | .17† | 1 | .16† | 0 | .82† | 10,388 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 28 | .57 | 0 | .22 | (11 | .59) | (11 | .37) | 0 | .28 | — | — | 0 | .28 | — | — | 16 | .92 | (40 | .13) | 1 | .22 | 1 | .22† | 1 | .20† | 0 | .76† | 5,794 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 21 | .73 | 0 | .15 | 6 | .69 | 6 | .84 | — | — | — | — | — | — | 28 | .57 | 31 | .48 | 1 | .25 | 1 | .30 | 1 | .29 | 0 | .67 | 7,845 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-06-06(4)–10-31-06 | 21 | .31 | (0 | .11) | 0 | .53 | 0 | .42 | — | — | — | — | — | — | 21 | .73 | 1 | .97 | 1 | .27 | 1 | .26 | 1 | .26 | (0 | .69) | 3,010 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 19 | .78 | 0 | .18• | 10 | .90 | 11 | .08 | — | — | — | — | — | — | 30 | .86 | 56 | .02 | 1 | .43 | 1 | .42† | 1 | .41† | 0 | .72† | 2,622 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 33 | .36 | 0 | .13 | (13 | .51) | (13 | .38) | 0 | .20 | — | — | 0 | .20 | — | — | 19 | .78 | (40 | .31) | 1 | .47 | 1 | .47† | 1 | .45† | 0 | .46† | 1,343 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 25 | .44 | 0 | .08• | 7 | .84 | 7 | .92 | — | — | — | — | — | — | 33 | .36 | 31 | .13 | 1 | .50 | 1 | .55 | 1 | .54 | 0 | .29 | 2,652 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 21 | .25 | 0 | .18• | 4 | .20 | 4 | .38 | 0 | .19 | — | — | 0 | .19 | — | — | 25 | .44 | 20 | .75 | 1 | .52 | 1 | .52 | 1 | .51 | 0 | .75 | 2,757 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 18 | .61 | 0 | .15 | 2 | .49 | 2 | .64 | — | — | — | — | 0 | .00* | — | 21 | .25 | 14 | .19(a) | 1 | .60 | 1 | .55 | 1 | .55 | 0 | .75 | 4,387 | 129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-01-09(4)–10-31-09 | 24 | .24 | (0 | .08)• | 2 | .30 | 2 | .22 | — | — | — | — | — | — | 26 | .46 | 9 | .16 | 1 | .18 | 1 | .17† | 1 | .16† | (0 | .79)† | 250 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Asia-Pacific Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 4 | .51 | 0 | .10• | 1 | .21 | 1 | .31 | 0 | .11 | — | — | 0 | .11 | — | — | 5 | .71 | 29 | .71 | 5 | .08 | 1 | .77† | 1 | .77† | 2 | .23† | 3,479 | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .11 | (5 | .50) | (5 | .39) | 0 | .10 | — | — | 0 | .10 | — | — | 4 | .51 | (54 | .27) | 4 | .14 | 1 | .75 | 1 | .75 | 1 | .54 | 3,144 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 4 | .50 | 0 | .07 | 1 | .19 | 1 | .26 | 0 | .08 | — | — | 0 | .08 | — | — | 5 | .68 | 28 | .60 | 5 | .83 | 2 | .52† | 2 | .52† | 1 | .43† | 27 | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .07 | (5 | .51) | (5 | .44) | 0 | .06 | — | — | 0 | .06 | — | — | 4 | .50 | (54 | .63) | 4 | .89 | 2 | .50 | 2 | .50 | 1 | .15 | 18 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 4 | .50 | 0 | .06• | 1 | .21 | 1 | .27 | 0 | .08 | — | — | 0 | .08 | — | — | 5 | .69 | 28 | .54 | 5 | .83 | 2 | .52† | 2 | .52† | 1 | .39† | 930 | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .06• | (5 | .50) | (5 | .44) | 0 | .06 | — | — | 0 | .06 | — | — | 4 | .50 | (54 | .62) | 4 | .89 | 2 | .50 | 2 | .50 | 1 | .12 | 3,532 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 4 | .50 | 0 | .11• | 1 | .20 | 1 | .31 | 0 | .13 | — | — | 0 | .13 | — | — | 5 | .68 | 29 | .97 | 4 | .82 | 1 | .51† | 1 | .51† | 2 | .40† | 1 | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .13 | (5 | .51) | (5 | .38) | 0 | .12 | — | — | 0 | .12 | — | — | 4 | .50 | (54 | .25) | 3 | .89 | 1 | .50 | 1 | .50 | 1 | .77 | 0 | ** | 81 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Emerging Countries Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .04 | 0 | .05• | 7 | .82 | 7 | .87 | 0 | .50 | — | — | 0 | .50 | 0 | .23 | — | 23 | .64 | 52 | .02(e) | 2 | .28 | 2 | .04 | 2 | .04 | 0 | .29 | 77,556 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 41 | .48 | 0 | .71 | (24 | .59) | (23 | .88) | 0 | .45 | 1 | .11 | — | 1 | .56 | — | — | 16 | .04 | (59 | .64) | 2 | .10 | 1 | .96 | 1 | .94 | 1 | .86 | 60,207 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 29 | .62 | 0 | .47 | 11 | .82 | 12 | .29 | 0 | .43 | — | — | 0 | .43 | — | — | 41 | .48 | 41 | .93 | 1 | .99 | 1 | .89 | 1 | .86 | 1 | .42 | 197,307 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 23 | .60 | 0 | .48 | 5 | .68 | 6 | .16 | — | 0 | .14 | — | 0 | .14 | — | — | 29 | .62 | 26 | .19 | 2 | .02 | 1 | .92 | 1 | .91 | 1 | .80 | 123,219 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 19 | .40 | 0 | .19 | 3 | .98 | 4 | .17 | 0 | .02 | — | — | 0 | .02 | 0 | .05 | — | 23 | .60 | 21 | .76(c) | 2 | .09 | 2 | .00 | 2 | .00 | 0 | .91 | 87,143 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 15 | .73 | (0 | .08)• | 7 | .74 | 7 | .66 | 0 | .17 | — | — | 0 | .17 | 0 | .23 | — | 23 | .45 | 50 | .68(e) | 2 | .93 | 2 | .79 | 2 | .79 | (0 | .44) | 4,973 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 40 | .67 | 0 | .36• | (24 | .05) | (23 | .69) | 0 | .14 | 1 | .11 | — | 1 | .25 | — | — | 15 | .73 | (59 | .94) | 2 | .75 | 2 | .71 | 2 | .69 | 1 | .10 | 4,312 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 29 | .04 | 0 | .24• | 11 | .57 | 11 | .81 | 0 | .18 | — | — | 0 | .18 | — | — | 40 | .67 | 40 | .85 | 2 | .64 | 2 | .64 | 2 | .61 | 0 | .67 | 16,648 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 23 | .17 | 0 | .28• | 5 | .59 | 5 | .87 | — | — | — | — | — | — | 29 | .04 | 25 | .33 | 2 | .67 | 2 | .67 | 2 | .66 | 1 | .06 | 13,575 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 19 | .17 | 0 | .04 | 3 | .91 | 3 | .95 | — | — | — | — | 0 | .05 | — | 23 | .17 | 20 | .87(c) | 2 | .74 | 2 | .74 | 2 | .74 | 0 | .14 | 12,562 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
71
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Emerging Countries Fund (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 14 | .82 | (0 | .07)• | 7 | .26 | 7 | .19 | 0 | .22 | — | — | 0 | .22 | 0 | .22 | — | 22 | .01 | 50 | .69(e) | 2 | .93 | 2 | .79 | 2 | .79 | (0 | .42) | 16,868 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 38 | .45 | 0 | .34• | (22 | .65) | (22 | .31) | 0 | .21 | 1 | .11 | — | 1 | .32 | — | — | 14 | .82 | (59 | .92) | 2 | .75 | 2 | .71 | 2 | .69 | 1 | .11 | 14,586 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 27 | .53 | 0 | .20 | 10 | .97 | 11 | .17 | 0 | .25 | — | — | 0 | .25 | — | — | 38 | .45 | 40 | .82 | 2 | .64 | 2 | .64 | 2 | .61 | 0 | .65 | 53,885 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 22 | .04 | 0 | .25 | 5 | .31 | 5 | .56 | 0 | .07 | — | — | 0 | .07 | — | — | 27 | .53 | 25 | .29 | 2 | .67 | 2 | .67 | 2 | .66 | 1 | .12 | 35,847 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 18 | .24 | 0 | .03 | 3 | .72 | 3 | .75 | — | — | — | — | 0 | .05 | — | 22 | .04 | 20 | .83(c) | 2 | .74 | 2 | .74 | 2 | .74 | 0 | .25 | 20,985 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .11 | 0 | .13• | 7 | .82 | 7 | .95 | 0 | .63 | — | — | 0 | .63 | 0 | .23 | — | 23 | .66 | 52 | .74(e) | 1 | .74 | 1 | .60 | 1 | .60 | 0 | .71 | 30,758 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 41 | .63 | 0 | .56• | (24 | .40) | (23 | .84) | 0 | .57 | 1 | .11 | — | 1 | .68 | — | — | 16 | .11 | (59 | .48) | 1 | .67 | 1 | .63 | 1 | .61 | 1 | .79 | 18,429 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 29 | .72 | 0 | .55 | 11 | .90 | 12 | .45 | 0 | .54 | — | — | 0 | .54 | — | — | 41 | .63 | 42 | .41 | 1 | .56 | 1 | .56 | 1 | .53 | 1 | .71 | 41,551 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 25 | .52 | 0 | .65• | 3 | .55 | 4 | .20 | — | — | — | — | — | — | 29 | .72 | 16 | .46 | 1 | .55 | 1 | .55 | 1 | .54 | 2 | .73 | 23,456 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .65 | 0 | .10• | 8 | .10 | 8 | .20 | 0 | .50 | — | — | 0 | .50 | 0 | .24 | — | 24 | .59 | 52 | .23(e) | 1 | .99 | 1 | .85 | 1 | .85 | 0 | .53 | 7,751 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 42 | .92 | 0 | .91 | (25 | .58) | (24 | .67) | 0 | .49 | 1 | .11 | — | 1 | .60 | — | — | 16 | .65 | (59 | .53) | 1 | .92 | 1 | .88 | 1 | .86 | 1 | .98 | 5,120 | 177 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 30 | .62 | 0 | .44 | 12 | .31 | 12 | .75 | — | 0 | .45 | — | 0 | .45 | — | — | 42 | .92 | 42 | .05 | 1 | .81 | 1 | .81 | 1 | .78 | 1 | .49 | 21,253 | 51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 24 | .38 | 0 | .59• | 5 | .81 | 6 | .40 | — | 0 | .16 | — | 0 | .16 | — | — | 30 | .62 | 26 | .37 | 1 | .80 | 1 | .80 | 1 | .79 | 2 | .09 | 10,700 | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 20 | .03 | 0 | .26 | 4 | .07 | 4 | .33 | 0 | .03 | — | — | 0 | .03 | 0 | .05 | — | 24 | .38 | 21 | .89(c) | 1 | .85 | 1 | .85 | 1 | .85 | 1 | .12 | 10,776 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16 | .85 | 0 | .01• | 8 | .31 | 8 | .32 | 0 | .64 | — | — | 0 | .64 | 0 | .24 | — | 24 | .77 | 52 | .70(e) | 1 | .74 | 1 | .60 | 1 | .60 | 0 | .04 | 93 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 36 | .18 | 0 | .54• | (19 | .86) | (19 | .32) | — | 0 | .01 | — | 0 | .01 | — | — | 16 | .85 | (53 | .42) | 1 | .67 | 1 | .63 | 1 | .61 | 2 | .48 | 36 | 177 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING European Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 5 | .33 | 0 | .12• | 1 | .71 | 1 | .83 | 0 | .31 | — | — | 0 | .31 | — | — | 6 | .85 | 36 | .84 | 3 | .84 | 1 | .75† | 1 | .75† | 2 | .34† | 6,400 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .13• | (4 | .68) | (4 | .55) | 0 | .12 | — | — | 0 | .12 | — | — | 5 | .33 | (45 | .92) | 4 | .45 | 1 | .75† | 1 | .75† | 1 | .52† | 3,157 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 5 | .32 | 0 | .08• | 1 | .69 | 1 | .77 | 0 | .27 | — | — | 0 | .27 | — | — | 6 | .82 | 35 | .71 | 4 | .59 | 2 | .50† | 2 | .50† | 1 | .56† | 30 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .07• | (4 | .68) | (4 | .61) | 0 | .07 | — | — | 0 | .07 | — | — | 5 | .32 | (46 | .34) | 5 | .20 | 2 | .50† | 2 | .50† | 0 | .85† | 10 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 5 | .30 | 0 | .10 | 1 | .68 | 1 | .78 | 0 | .27 | — | — | 0 | .27 | — | — | 6 | .81 | 35 | .77 | 4 | .59 | 2 | .50† | 2 | .50† | 1 | .85† | 67 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .09 | (4 | .72) | (4 | .63) | 0 | .07 | — | — | 0 | .07 | — | — | 5 | .30 | (46 | .57) | 5 | .20 | 2 | .50† | 2 | .50† | 1 | .13† | 48 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 5 | .33 | 0 | .16• | 1 | .67 | 1 | .83 | 0 | .32 | — | — | 0 | .32 | — | — | 6 | .84 | 37 | .07 | 3 | .49 | 1 | .40† | 1 | .40† | 3 | .07† | 1 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-01-07(4)–10-31-08 | 10 | .00 | 0 | .15• | (4 | .68) | (4 | .53) | 0 | .14 | — | — | 0 | .14 | — | — | 5 | .33 | (45 | .77) | 4 | .20 | 1 | .40† | 1 | .40† | 1 | .75† | 1 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Foreign Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .68 | 0 | .12• | 1 | .50 | 1 | .62 | 0 | .45 | — | — | 0 | .45 | — | — | 12 | .85 | 14 | .38 | 1 | .78 | 1 | .70† | 1 | .70† | 1 | .13† | 93,829 | 176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 23 | .54 | 0 | .18• | (10 | .65) | (10 | .47) | — | 1 | .39 | — | 1 | .39 | — | — | 11 | .68 | (47 | .01) | 1 | .61 | 1 | .60† | 1 | .60† | 0 | .93† | 151,246 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 18 | .56 | 0 | .10 | 5 | .56 | 5 | .66 | — | 0 | .68 | — | 0 | .68 | — | — | 23 | .54 | 31 | .32 | 1 | .54 | 1 | .54 | 1 | .54 | 0 | .59 | 349,917 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 14 | .79 | 0 | .08• | 4 | .05 | 4 | .13 | — | 0 | .36 | — | 0 | .36 | — | — | 18 | .56 | 28 | .39 | 1 | .58 | 1 | .65 | 1 | .65 | 0 | .49 | 219,819 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .38 | 0 | .06 | 2 | .35 | 2 | .41 | — | — | — | — | — | — | 14 | .79 | 19 | .47 | 1 | .66 | 1 | .68 | 1 | .68 | 0 | .53 | 122,883 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .19 | 0 | .04• | 1 | .43 | 1 | .47 | 0 | .30 | — | — | 0 | .30 | — | — | 12 | .36 | 13 | .42 | 2 | .53 | 2 | .45† | 2 | .45† | 0 | .38† | 14,077 | 176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 22 | .78 | 0 | .02• | (10 | .22) | (10 | .20) | — | 1 | .39 | — | 1 | .39 | — | — | 11 | .19 | (47 | .42) | 2 | .36 | 2 | .35† | 2 | .35† | 0 | .11† | 18,831 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 18 | .11 | (0 | .03) | 5 | .38 | 5 | .35 | — | 0 | .68 | — | 0 | .68 | — | — | 22 | .78 | 30 | .35 | 2 | .29 | 2 | .29 | 2 | .29 | (0 | .16) | 50,276 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 14 | .55 | (0 | .04)• | 3 | .96 | 3 | .92 | — | 0 | .36 | — | 0 | .36 | — | — | 18 | .11 | 27 | .40 | 2 | .33 | 2 | .40 | 2 | .40 | (0 | .24) | 38,136 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .26 | (0 | .03) | 2 | .32 | 2 | .29 | — | — | — | — | — | — | 14 | .55 | 18 | .68 | 2 | .41 | 2 | .43 | 2 | .43 | (0 | .23) | 22,944 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
72
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Foreign Fund (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .21 | 0 | .04• | 1 | .43 | 1 | .47 | 0 | .32 | — | — | 0 | .32 | — | — | 12 | .36 | 13 | .43 | 2 | .53 | 2 | .45† | 2 | .45† | 0 | .38† | 76,677 | 176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 22 | .81 | 0 | .03• | (10 | .24) | (10 | .21) | — | 1 | .39 | — | 1 | .39 | — | — | 11 | .21 | (47 | .40) | 2 | .36 | 2 | .35† | 2 | .35† | 0 | .14† | 102,274 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 18 | .14 | (0 | .03) | 5 | .38 | 5 | .35 | — | 0 | .68 | — | 0 | .68 | — | — | 22 | .81 | 30 | .30 | 2 | .29 | 2 | .29 | 2 | .29 | (0 | .14) | 232,439 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 14 | .57 | (0 | .04)• | 3 | .97 | 3 | .93 | — | 0 | .36 | — | 0 | .36 | — | — | 18 | .14 | 27 | .43 | 2 | .33 | 2 | .40 | 2 | .40 | (0 | .26) | 154,101 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .28 | (0 | .03) | 2 | .32 | 2 | .29 | — | — | — | — | — | — | 14 | .57 | 18 | .65 | 2 | .41 | 2 | .43 | 2 | .43 | (0 | .27) | 87,877 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .92 | 0 | .16• | 1 | .54 | 1 | .70 | 0 | .54 | — | — | 0 | .54 | — | — | 13 | .08 | 14 | .82 | 1 | .33 | 1 | .31† | 1 | .31† | 1 | .44† | 65,256 | 176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 23 | .91 | 0 | .24• | (10 | .84) | (10 | .60) | — | 1 | .39 | — | 1 | .39 | — | — | 11 | .92 | (46 | .82) | 1 | .28 | 1 | .27† | 1 | .27† | 1 | .26† | 68,020 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 18 | .78 | 0 | .16 | 5 | .65 | 5 | .81 | — | 0 | .68 | — | 0 | .68 | — | — | 23 | .91 | 31 | .76 | 1 | .21 | 1 | .21 | 1 | .21 | 0 | .94 | 108,732 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 14 | .93 | 0 | .13• | 4 | .08 | 4 | .21 | — | 0 | .36 | — | 0 | .36 | — | — | 18 | .78 | 28 | .67 | 1 | .28 | 1 | .35 | 1 | .34 | 0 | .78 | 61,248 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .45 | 0 | .34 | 2 | .14 | 2 | .48 | — | — | — | — | — | — | 14 | .93 | 19 | .92 | 1 | .34 | 1 | .35 | 1 | .35 | 0 | .97 | 1,049 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .73 | 0 | .15• | 1 | .52 | 1 | .67 | 0 | .19 | — | — | 0 | .19 | — | — | 13 | .21 | 14 | .37 | 1 | .58 | 1 | .56† | 1 | .56† | 1 | .29† | 23 | 176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 23 | .63 | 0 | .18• | (10 | .69) | (10 | .51) | — | 1 | .39 | — | 1 | .39 | — | — | 11 | .73 | (47 | .00) | 1 | .53 | 1 | .52† | 1 | .52† | 0 | .94† | 66 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 18 | .61 | 0 | .17• | 5 | .53 | 5 | .70 | — | 0 | .68 | — | 0 | .68 | — | — | 23 | .63 | 31 | .45 | 1 | .45 | 1 | .45 | 1 | .45 | 0 | .82 | 856 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 14 | .82 | 0 | .07• | 4 | .08 | 4 | .15 | — | 0 | .36 | — | 0 | .36 | — | — | 18 | .61 | 28 | .47 | 1 | .53 | 1 | .60 | 1 | .60 | 0 | .43 | 1,196 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 12 | .40 | 0 | .08 | 2 | .34 | 2 | .42 | — | — | — | — | — | — | 14 | .82 | 19 | .52 | 1 | .59 | 1 | .60 | 1 | .60 | 0 | .53 | 1,079 | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 12 | .71 | 0 | .18• | 1 | .63 | 1 | .81 | 0 | .54 | — | — | 0 | .54 | — | — | 13 | .98 | 14 | .79 | 1 | .33 | 1 | .31† | 1 | .31† | 1 | .47† | 566 | 176 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 20 | .48 | 0 | .27• | (8 | .04) | (7 | .77) | — | — | — | — | — | — | 12 | .71 | (37 | .94) | 1 | .28 | 1 | .27† | 1 | .27† | 2 | .03† | 296 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Greater China Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 9 | .24 | 0 | .07• | 5 | .78 | 5 | .85 | 0 | .21 | 0 | .60 | — | 0 | .81 | — | — | 14 | .28 | 67 | .10 | 2 | .29 | 2 | .11 | 2 | .11 | 0 | .58 | 32,860 | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .43 | 0 | .05• | (13 | .12) | (13 | .07) | 0 | .06 | 2 | .06 | — | 2 | .12 | — | — | 9 | .24 | (57 | .63) | 1 | .96 | 1 | .96 | 1 | .96 | 0 | .32 | 20,481 | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .49 | 0 | .07 | 11 | .93 | 12 | .00 | 0 | .06 | 0 | .00* | — | 0 | .06 | — | — | 24 | .43 | 96 | .41 | 1 | .91 | 1 | .91 | 1 | .91 | 0 | .54 | 73,804 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4) – 10-31-06 | 10 | .00 | 0 | .06 | 2 | .43 | 2 | .49 | — | — | — | — | — | — | 12 | .49 | 24 | .90 | 2 | .64 | 2 | .64 | 2 | .64 | 0 | .75 | 23,709 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 9 | .08 | (0 | .03)• | 5 | .72 | 5 | .69 | 0 | .06 | 0 | .60 | — | 0 | .66 | — | — | 14 | .11 | 65 | .73 | 3 | .04 | 2 | .86 | 2 | .86 | (0 | .29) | 3,246 | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .14 | (0 | .05) | (12 | .95) | (13 | .00) | — | 2 | .06 | — | 2 | .06 | — | — | 9 | .08 | (57 | .95) | 2 | .71 | 2 | .71 | 2 | .71 | (0 | .33) | 1,901 | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .42 | (0 | .03)• | 11 | .79 | 11 | .76 | 0 | .04 | 0 | .00* | — | 0 | .04 | — | — | 24 | .14 | 94 | .92 | 2 | .66 | 2 | .66 | 2 | .66 | (0 | .19) | 7,414 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01-06-06(4) – 10-31-06 | 10 | .60 | 0 | .05• | 1 | .77 | 1 | .82 | — | — | — | — | — | — | 12 | .42 | 17 | .17 | 3 | .39 | 3 | .39 | 3 | .39 | 0 | .47 | 1,957 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 9 | .09 | (0 | .02)• | 5 | .73 | 5 | .71 | 0 | .05 | 0 | .60 | — | 0 | .65 | — | — | 14 | .15 | 65 | .77 | 3 | .04 | 2 | .86 | 2 | .86 | (0 | .15) | 6,182 | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .16 | (0 | .09)• | (12 | .92) | (13 | .01) | — | 2 | .06 | — | 2 | .06 | — | — | 9 | .09 | (57 | .94) | 2 | .71 | 2 | .71 | 2 | .71 | (0 | .52) | 2,694 | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .43 | (0 | .03)• | 11 | .79 | 11 | .76 | 0 | .03 | 0 | .00* | — | 0 | .03 | — | — | 24 | .16 | 94 | .75 | 2 | .66 | 2 | .66 | 2 | .66 | (0 | .20) | 12,386 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01-11-06(4) – 10-31-06 | 10 | .67 | 0 | .05• | 1 | .71 | 1 | .76 | — | — | — | — | — | — | 12 | .43 | 16 | .49 | 3 | .39 | 3 | .39 | 3 | .39 | 0 | .53 | 2,124 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 9 | .28 | 0 | .19• | 5 | .72 | 5 | .91 | 0 | .28 | 0 | .60 | — | 0 | .88 | — | — | 14 | .31 | 67 | .79 | 1 | .86 | 1 | .68 | 1 | .68 | 1 | .48 | 690 | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 24 | .46 | 0 | .16• | (13 | .18) | (13 | .02) | 0 | .10 | 2 | .06 | — | 2 | .16 | — | — | 9 | .28 | (57 | .42) | 1 | .70 | 1 | .70 | 1 | .70 | 1 | .02 | 39 | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .50 | 0 | .11 | 11 | .93 | 12 | .04 | 0 | .08 | 0 | .00* | — | 0 | .08 | — | — | 24 | .46 | 96 | .81 | 1 | .66 | 1 | .66 | 1 | .66 | 0 | .73 | 52 | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
05-08-06(4)–10-31-06 | 12 | .84 | 0 | .08 | (0 | .42) | (0 | .34) | — | — | — | — | — | — | 12 | .50 | (2 | .65) | 2 | .39 | 2 | .39 | 2 | .39 | 1 | .47 | 22 | 108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 9 | .26 | 0 | .11• | 5 | .70 | 5 | .81 | 0 | .28 | 0 | .60 | — | 0 | .88 | — | — | 14 | .19 | 66 | .79 | 2 | .29 | 2 | .11 | 2 | .11 | 0 | .85 | 2,966 | 134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-04-08(4)–10-31-08 | 16 | .83 | 0 | .11• | (7 | .68) | (7 | .57) | — | — | — | — | — | — | 9 | .26 | (44 | .98) | 1 | .96 | 1 | .96 | 1 | .96 | 2 | .23 | 206 | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
73
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Index Plus International Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .35 | 0 | .16• | 1 | .49 | 1 | .65 | 0 | .23 | — | — | 0 | .23 | 0 | .03 | — | 7 | .80 | 27 | .40(f) | 1 | .53 | 1 | .15 | 1 | .15 | 2 | .58 | 8,828 | 169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 13 | .95 | 0 | .19• | (6 | .24) | (6 | .05) | 0 | .18 | 1 | .37 | — | 1 | .55 | — | — | 6 | .35 | (48 | .51) | 1 | .73 | 1 | .30 | 1 | .30 | 1 | .93 | 9,446 | 215 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .68 | 0 | .14• | 2 | .48 | 2 | .62 | 0 | .08 | 0 | .27 | — | 0 | .35 | — | — | 13 | .95 | 22 | .98 | 1 | .13 | 1 | .16 | 1 | .16 | 1 | .17 | 2,233 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | 0 | .14• | 1 | .54 | 1 | .68 | — | — | — | — | — | — | 11 | .68 | 16 | .80 | 1 | .30 | 1 | .15 | 1 | .15 | 1 | .50 | 12,513 | 188 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .29 | 0 | .11• | 1 | .49 | 1 | .60 | 0 | .12 | — | — | 0 | .12 | 0 | .03 | — | 7 | .80 | 26 | .41(f) | 2 | .28 | 1 | .90 | 1 | .90 | 1 | .74 | 1,221 | 169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 13 | .90 | 0 | .12• | (6 | .20) | (6 | .08) | 0 | .16 | 1 | .37 | — | 1 | .53 | — | — | 6 | .29 | (48 | .88) | 2 | .48 | 2 | .05 | 2 | .05 | 1 | .22 | 1,571 | 215 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .63 | 0 | .09• | 2 | .51 | 2 | .60 | 0 | .06 | 0 | .27 | — | 0 | .33 | — | — | 13 | .90 | 22 | .85 | 1 | .89 | 1 | .92 | 1 | .92 | 0 | .67 | 734 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01-12-06(4)–10-31-06 | 10 | .43 | 0 | .06• | 1 | .14 | 1 | .20 | — | — | — | — | — | — | 11 | .63 | 11 | .51 | 2 | .05 | 1 | .90 | 1 | .90 | 0 | .64 | 264 | 188 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .28 | 0 | .11• | 1 | .48 | 1 | .59 | 0 | .15 | — | — | 0 | .15 | 0 | .03 | — | 7 | .75 | 26 | .45(f) | 2 | .28 | 1 | .90 | 1 | .90 | 1 | .78 | 1,445 | 169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 13 | .89 | 0 | .12• | (6 | .20) | (6 | .08) | 0 | .16 | 1 | .37 | — | 1 | .53 | — | — | 6 | .28 | (48 | .91) | 2 | .48 | 2 | .05 | 2 | .05 | 1 | .16 | 1,311 | 215 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .61 | 0 | .09• | 2 | .50 | 2 | .59 | 0 | .04 | 0 | .27 | — | 0 | .31 | — | — | 13 | .89 | 22 | .81 | 1 | .89 | 1 | .92 | 1 | .92 | 0 | .69 | 1,126 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01-12-06(4)–10-31-06 | 10 | .43 | 0 | .08• | 1 | .10 | 1 | .18 | — | — | — | — | — | — | 11 | .61 | 11 | .31 | 2 | .05 | 1 | .90 | 1 | .90 | 0 | .87 | 534 | 188 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .42 | 0 | .18• | 1 | .50 | 1 | .68 | 0 | .32 | — | — | 0 | .32 | 0 | .03 | — | 7 | .81 | 27 | .81(f) | 0 | .92 | 0 | .90 | 0 | .90 | 2 | .83 | 51,144 | 169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .06 | 0 | .29• | (6 | .32) | (6 | .03) | 0 | .24 | 1 | .37 | — | 1 | .61 | — | — | 6 | .42 | (48 | .12) | 1 | .05 | 0 | .62 | 0 | .62 | 2 | .80 | 54,838 | 215 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .70 | 0 | .20 | 2 | .55 | 2 | .75 | 0 | .12 | 0 | .27 | — | 0 | .39 | — | — | 14 | .06 | 24 | .14 | 0 | .84 | 0 | .87 | 0 | .87 | 1 | .78 | 118,924 | 213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | 0 | .16• | 1 | .54 | 1 | .70 | — | — | — | — | — | — | 11 | .70 | 17 | .00 | 1 | .05 | 0 | .90 | 0 | .90 | 1 | .69 | 78,581 | 188 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .31 | 0 | .16• | 1 | .49 | 1 | .65 | 0 | .24 | — | — | 0 | .24 | 0 | .03 | — | 7 | .75 | 27 | .60(f) | 1 | .53 | 1 | .15 | 1 | .15 | 2 | .53 | 47,328 | 169 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11-09-07(4)–10-31-08 | 13 | .09 | 0 | .19• | (5 | .36) | (5 | .17) | 0 | .24 | 1 | .37 | — | 1 | .61 | — | — | 6 | .31 | (45 | .16) | 1 | .73 | 1 | .30 | 1 | .30 | 2 | .03 | 41,539 | 215 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING International Capital Appreciation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .70 | 0 | .00•,* | 2 | .49 | 2 | .49 | 0 | .15 | — | 0 | .01 | 0 | .16 | — | — | 9 | .03 | 37 | .80 | 1 | .55 | 1 | .51 | 1 | .50 | 0 | .01 | 25,819 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .86 | 0 | .12 | (7 | .64) | (7 | .52) | 0 | .14 | 0 | .50 | — | 0 | .64 | — | — | 6 | .70 | (52 | .69) | 1 | .41 | 1 | .46 | 1 | .46 | 0 | .73 | 1,612 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .39 | 0 | .01• | 3 | .76 | 3 | .77 | 0 | .05 | 0 | .25 | — | 0 | .30 | — | — | 14 | .86 | 33 | .89 | 1 | .48 | 1 | .50 | 1 | .50 | 0 | .08 | 4,592 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | 0 | .04 | 1 | .35 | 1 | .39 | — | — | — | — | — | — | 11 | .39 | 13 | .90 | 1 | .84 | 1 | .50 | 1 | .50 | 0 | .32 | 3,677 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .58 | (0 | .06)• | 2 | .47 | 2 | .41 | 0 | .03 | — | 0 | .01 | 0 | .04 | — | — | 8 | .95 | 36 | .68 | 2 | .30 | 2 | .26 | 2 | .25 | (0 | .75) | 4,460 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .67 | (0 | .01)• | (7 | .47) | (7 | .48) | 0 | .11 | 0 | .50 | — | 0 | .61 | — | — | 6 | .58 | (53 | .01) | 2 | .16 | 2 | .21 | 2 | .21 | (0 | .11) | 278 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .33 | (0 | .09) | 3 | .71 | 3 | .62 | 0 | .03 | 0 | .25 | — | 0 | .28 | — | — | 14 | .67 | 32 | .67 | 2 | .23 | 2 | .25 | 2 | .25 | (0 | .88) | 943 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01-09-06(4)–10-31-06 | 10 | .42 | (0 | .04)• | 0 | .95 | 0 | .91 | — | — | — | — | — | — | 11 | .33 | 8 | .73 | 2 | .59 | 2 | .25 | 2 | .25 | (0 | .43) | 66 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .60 | (0 | .06)• | 2 | .47 | 2 | .41 | 0 | .02 | — | 0 | .01 | 0 | .03 | — | — | 8 | .98 | 36 | .38 | 2 | .30 | 2 | .26 | 2 | .25 | (0 | .69) | 7,825 | 75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .71 | 0 | .00•,* | (7 | .50) | (7 | .50) | 0 | .11 | 0 | .50 | — | 0 | .61 | — | — | 6 | .60 | (52 | .99) | 2 | .16 | 2 | .21 | 2 | .21 | 0 | .01 | 354 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .35 | (0 | .12) | 3 | .73 | 3 | .61 | 0 | .00• | 0 | .25 | — | 0 | .25 | — | — | 14 | .71 | 32 | .45 | 2 | .23 | 2 | .25 | 2 | .25 | (0 | .97) | 971 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
01-24-06(4)–10-31-06 | 10 | .28 | (0 | .03) | 1 | .10 | 1 | .07 | — | — | — | — | — | — | 11 | .35 | 10 | .41 | 2 | .59 | 2 | .25 | 2 | .25 | (0 | .50) | 65 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .73 | 0 | .09• | 2 | .41 | 2 | .50 | 0 | .22 | — | 0 | .01 | 0.23 | — | — | 9 | .00 | 38 | .21 | 1 | .18 | 1 | .14 | 1 | .13 | 1 | .17 | 58,959 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .90 | 0 | .17 | (7 | .67) | (7 | .50) | 0 | .17 | 0 | .50 | — | 0 | .67 | — | — | 6 | .73 | (52 | .48) | 1 | .08 | 1 | .13 | 1 | .13 | 1 | .09 | 47,918 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .43 | 0 | .06• | 3 | .75 | 3 | .81 | 0 | .09 | 0 | .25 | — | 0 | .34 | — | — | 14 | .90 | 34 | .14 | 1 | .13 | 1 | .15 | 1 | .15 | 0 | .47 | 140,901 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | 0 | .02 | 1 | .41 | 1 | .43 | — | — | — | — | — | — | 11 | .43 | 14 | .30 | 1 | .56 | 1 | .22 | 1 | .22 | 0 | .39 | 47,200 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08-07-09(4)–10-31-09 | 8 | .59 | 0 | .00•,* | 0 | .44 | 0 | .44 | — | — | — | — | — | — | 9 | .03 | 5 | .12 | 1 | .43 | 1 | .39 | 1 | .38 | 0 | .04 | 11,675 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
74
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING International Real Estate Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .91 | 0 | .17 | 1 | .57 | 1 | .74 | 0 | .17 | — | — | 0 | .17 | — | — | 8 | .48 | 25 | .77 | 1 | .73 | 1 | .53† | 1 | .53† | 2 | .43† | 116,989 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .56 | 0 | .33 | (7 | .43) | (7 | .10) | 0 | .36 | — | 0 | .19 | 0 | .55 | — | — | 6 | .91 | (50 | .31) | 1 | .48 | 1 | .50† | 1 | .50† | 1 | .76† | 89,623 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .63 | 0 | .13• | 3 | .14 | 3 | .27 | 0 | .34 | — | — | 0 | .34 | — | — | 14 | .56 | 28 | .49 | 1 | .51 | 1 | .50 | 1 | .50 | 0 | .99 | 271,425 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-28-06(4)–10-31-06 | 10 | .00 | 0 | .09• | 1 | .60 | 1 | .69 | 0 | .06 | — | — | 0 | .06 | — | — | 11 | .63 | 16 | .94 | 2 | .01 | 1 | .50 | 1 | .50 | 1 | .33 | 49,798 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .88 | 0 | .12 | 1 | .56 | 1 | .68 | 0 | .12 | — | — | 0 | .12 | — | — | 8 | .44 | 24 | .82 | 2 | .48 | 2 | .28† | 2 | .28† | 1 | .78† | 3,875 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .50 | 0 | .25 | (7 | .41) | (7 | .16) | 0 | .27 | — | 0 | .19 | 0 | .46 | — | — | 6 | .88 | (50 | .72) | 2 | .23 | 2 | .25† | 2 | .25† | 1 | .00† | 4,004 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .59 | 0 | .03• | 3 | .14 | 3 | .17 | 0 | .26 | — | — | 0 | .26 | — | — | 14 | .50 | 27 | .69 | 2 | .26 | 2 | .25 | 2 | .25 | 0 | .25 | 11,819 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-28-06(4)–10-31-06 | 10 | .00 | 0 | .04• | 1 | .59 | 1 | .63 | 0 | .04 | — | — | 0 | .04 | — | — | 11 | .59 | 16 | .38 | 2 | .76 | 2 | .25 | 2 | .25 | 0 | .51 | 1,639 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .88 | 0 | .13 | 1 | .54 | 1 | .67 | 0 | .11 | — | — | 0 | .11 | — | — | 8 | .44 | 24 | .76 | 2 | .48 | 2 | .28† | 2 | .28† | 1 | .81† | 26,520 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .49 | 0 | .29 | (7 | .44) | (7 | .15) | 0 | .27 | — | 0 | .19 | 0 | .46 | — | — | 6 | .88 | (50 | .69) | 2 | .23 | 2 | .25† | 2 | .25† | 1 | .00† | 36,661 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .59 | 0 | .03• | 3 | .13 | 3 | .16 | 0 | .26 | — | — | 0 | .26 | — | — | 14 | .49 | 27 | .58 | 2.26 | 2 | .25 | 2 | .25 | 0 | .24 | 121,529 | 44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-28-06(4)–10-31-06 | 10 | .00 | 0 | .04• | 1 | .59 | 1 | .63 | 0 | .04 | — | — | 0 | .04 | — | — | 11 | .59 | 16 | .31 | 2 | .76 | 2 | .25 | 2 | .25 | 0 | .54 | 17,075 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .92 | 0 | .19 | 1 | .57 | 1 | .76 | 0 | .19 | — | — | 0 | .19 | — | — | 8 | .49 | 26 | .12 | 1 | .23 | 1 | .23† | 1 | .23† | 2 | .80† | 387,251 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .58 | 0 | .23• | (7 | .31) | (7 | .08) | 0 | .39 | — | 0 | .19 | 0 | .58 | — | — | 6 | .92 | (50 | .14) | 1 | .16 | 1 | .18† | 1 | .18† | 2 | .22† | 290,227 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .64 | 0 | .16• | 3 | .15 | 3 | .31 | 0 | .37 | — | — | 0 | .37 | — | — | 14 | .58 | 28 | .80 | 1 | .26 | 1 | .25 | 1 | .25 | 1 | .22 | 127,029 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-28-06(4)–10-31-06 | 10 | .00 | 0 | .08• | 1 | .63 | 1 | .71 | 0 | .07 | — | — | 0 | .07 | — | — | 11 | .64 | 17 | .23 | 1 | .76 | 1 | .25 | 1 | .25 | 1 | .09 | 22,336 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6 | .91 | 0 | .19 | 1 | .60 | 1 | .79 | 0 | .19 | — | — | 0 | .19 | �� | — | 8 | .51 | 26 | .61 | 1 | .23 | 1 | .23† | 1 | .23† | 2 | .85† | 2,094 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 11 | .48 | 0 | .17• | (4 | .59) | (4 | .42) | 0 | .10 | — | 0 | .05 | 0 | .15 | — | — | 6 | .91 | (38 | .91) | 1 | .18 | 1 | .20† | 1 | .20† | 2 | .45† | 307 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING International SmallCap Multi-Manager Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 22 | .73 | 0 | .21• | 9 | .04 | 9 | .25 | 0 | .71 | — | — | 0 | .71 | 0 | .18 | — | 31 | .45 | 42 | .73(g) | 1 | .95 | 1 | .95† | 1 | .95† | 0 | .85† | 177,914 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 66 | .43 | 0 | .65 | (36 | .15) | (35 | .50) | 0 | .32 | 7 | .88 | — | 8 | .20 | — | — | 22 | .73 | (59 | .84) | 1 | .70 | 1 | .70 | 1 | .70 | 1 | .27 | 160,896 | 84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 47 | .15 | 0 | .31 | 19 | .25 | 19 | .56 | 0 | .28 | — | — | 0 | .28 | — | — | 66 | .43 | 41 | .67 | 1 | .60 | 1 | .60 | 1 | .60 | 0 | .67 | 523,535 | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 37 | .75 | 0 | .29 | 9 | .44 | 9 | .73 | 0 | .33 | — | — | 0 | .33 | — | — | 47 | .15 | 25 | .91 | 1 | .66 | 1 | .66 | 1 | .66 | 0 | .67 | 243,020 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 29 | .27 | 0 | .33• | 8 | .05 | 8 | .38 | — | — | — | — | 0 | .10 | — | 37 | .75 | 28 | .97(d) | 1 | .74 | 1 | .74 | 1 | .74 | 0 | .98 | 173,612 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 23 | .48 | 0 | .06• | 9 | .45 | 9 | .51 | 0 | .17 | — | — | 0 | .17 | 0 | .19 | — | 33 | .01 | 41 | .60(g) | 2 | .60 | 2 | .60† | 2 | .60† | 0 | .24† | 8,383 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 68 | .31 | 0 | .21• | (37 | .16) | (36 | .95) | — | 7 | .88 | — | 7 | .88 | — | — | 23 | .48 | (60 | .10) | 2 | .35 | 2 | .35 | 2 | .35 | 0 | .45 | 11,892 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 48 | .53 | 0 | .00•,* | 19 | .78 | 19 | .78 | — | — | — | — | — | — | 68 | .31 | 40 | .76 | 2 | .25 | 2 | .25 | 2 | .25 | 0 | .00* | 65,619 | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 38 | .83 | (0 | .01)• | 9 | .75 | 9 | .74 | 0 | .04 | — | — | 0 | .04 | — | — | 48 | .53 | 25 | .10 | 2 | .31 | 2 | .31 | 2 | .31 | (0 | .03) | 58,469 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 30 | .30 | 0 | .10• | 8 | .33 | 8 | .43 | — | — | — | — | 0 | .10 | — | 38 | .83 | 28 | .15(d) | 2 | .39 | 2 | .39 | 2 | .39 | 0 | .29 | 57,131 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 21 | .15 | 0 | .05• | 8 | .46 | 8 | .51 | 0 | .42 | — | — | 0 | .42 | 0 | .17 | — | 29 | .41 | 41 | .80(g) | 2 | .60 | 2 | .60† | 2 | .60† | 0 | .21† | 31,928 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 62 | .48 | 0 | .34 | (33 | .79) | (33 | .45) | — | 7 | .88 | — | 7 | .88 | — | — | 21 | .15 | (60 | .11) | 2 | .35 | 2 | .35 | 2 | .35 | 0 | .58 | 29,760 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 44 | .39 | 0 | .00•,* | 18 | .09 | 18 | .09 | 0 | .00* | — | — | 0 | .00* | — | — | 62 | .48 | 40 | .76 | 2 | .25 | 2 | .25 | 2 | .25 | 0 | .01 | 104,274 | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 35 | .59 | (0 | .00)* | 8 | .91 | 8 | .91 | 0 | .11 | — | — | 0 | .11 | — | — | 44 | .39 | 25 | .09 | 2 | .31 | 2 | .31 | 2 | .31 | (0 | .01) | 65,534 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 27 | .77 | 0 | .10• | 7 | .62 | 7 | .72 | — | — | — | — | 0 | .10 | — | 35 | .59 | 28 | .16(d) | 2 | .39 | 2 | .39 | 2 | .39 | 0 | .30 | 52,420 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 22 | .85 | 0 | .32• | 9 | .09 | 9 | .41 | 0 | .91 | — | — | 0 | .91 | 0 | .18 | — | 31 | .53 | 43 | .57(g) | 1 | .45 | 1 | .45† | 1 | .45† | 1 | .29† | 164,985 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 66 | .72 | 0 | .78 | (36 | .25) | (35 | .47) | 0 | .52 | 7 | .88 | — | 8 | .40 | — | — | 22 | .85 | (59 | .66) | 1 | .29 | 1 | .29 | 1 | .29 | 1 | .71 | 139,213 | 84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 47 | .35 | 0 | .60 | 19 | .25 | 19 | .85 | 0 | .48 | — | — | 0 | .48 | — | — | 66 | .72 | 42 | .24 | 1 | .20 | 1 | .20 | 1 | .20 | 1 | .12 | 376,737 | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 40 | .64 | 0 | .39• | 6 | .32 | 6 | .71 | — | — | — | — | — | — | 47 | .35 | 16 | .51 | 1 | .20 | 1 | .20 | 1 | .20 | 1 | .02 | 137,184 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
75
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING International SmallCap Multi-Manager Fund (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 22 | .75 | 0 | .18• | 9 | .07 | 9 | .25 | 0 | .90 | — | — | 0 | .90 | 0 | .18 | — | 31 | .28 | 43 | .07(g) | 1 | .85 | 1 | .85† | 1 | .85† | 0 | .69† | 565 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-04-08(4)–10-31-08 | 47 | .28 | 0 | .18• | (24 | .71) | (24 | .53) | — | 0 | .00* | — | — | — | — | 22 | .75 | (51 | .88) | 1 | .60 | 1 | .60 | 1 | .60 | 1 | .39 | 62 | 84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 24 | .74 | 0 | .29• | 9 | .88 | 10 | .17 | 0 | .76 | — | — | 0 | .76 | 0 | .20 | — | 34 | .35 | 43 | .13(g) | 1 | .70 | 1 | .70† | 1 | .70† | 1 | .09† | 30,910 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 71 | .41 | 0 | .79 | (39 | .21) | (38 | .42) | 0 | .37 | 7 | .88 | — | 8 | .25 | — | — | 24 | .74 | (59 | .78) | 1 | .54 | 1 | .54 | 1 | .54 | 1 | .47 | 43,443 | 84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 50 | .65 | 0 | .48 | 20 | .62 | 21 | .10 | 0 | .34 | — | — | 0 | .34 | — | — | 71 | .41 | 41 | .87 | 1 | .45 | 1 | .45 | 1 | .45 | 0 | .81 | 131,142 | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 40 | .53 | 0 | .37 | 10 | .16 | 10 | .53 | 0 | .41 | — | — | 0 | .41 | — | — | 50 | .65 | 26 | .14 | 1 | .48 | 1 | .48 | 1 | .48 | 0 | .83 | 82,245 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 31 | .34 | 0 | .43• | 8 | .66 | 9 | .09 | — | — | — | — | 0 | .10 | — | 40 | .53 | 29 | .32(d) | 1 | .49 | 1 | .49 | 1 | .49 | 1 | .18 | 57,846 | 124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 26 | .83 | 0 | .37 | 10 | .71 | 11 | .08 | 0 | .92 | — | — | 0 | .92 | 0 | .22 | — | 37 | .21 | 43 | .54(g) | 1 | .45 | 1 | .45† | 1 | .45† | 1 | .32† | 12,096 | 103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 50 | .70 | 0 | .50• | (24 | .37) | (23 | .87) | — | 0.00* | — | — | — | — | 26 | .83 | (47 | .08) | 1 | .29 | 1 | .29 | 1 | .29 | 1 | .80 | 10,366 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING International Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .13 | 0 | .14 | 1 | .88 | 2 | .02 | 0 | .35 | 1 | .51 | — | 1 | .86 | 0 | .01 | — | 11 | .30 | 21 | .74(h) | 1 | .75 | 1 | .75† | 1 | .75† | 1 | .25† | 725,329 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 23 | .15 | 0 | .39 | (8 | .83) | (8 | .44) | 0 | .23 | 3 | .35 | — | 3 | .58 | — | — | 11 | .13 | (42 | .58) | 1 | .58 | 1 | .58† | 1 | .57† | 1 | .95† | 931,162 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 21 | .52 | 0 | .24• | 3 | .73 | 3 | .97 | 0 | .20 | 2 | .14 | — | 2 | .34 | — | — | 23 | .15 | 19 | .87 | 1 | .59 | 1 | .59 | 1 | .59 | 1 | .08 | 2,136,218 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 18 | .33 | 0 | .18• | 4 | .58 | 4 | .76 | 0 | .16 | 1 | .41 | — | 1 | .57 | — | — | 21 | .52 | 27 | .64 | 1 | .60 | 1 | .60 | 1 | .60 | 0 | .90 | 1,995,027 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 16 | .90 | 0 | .17 | 2 | .28 | 2 | .45 | 0 | .22 | 0 | .80 | 0 | .00* | 1 | .02 | — | — | 18 | .33 | 15 | .06(a) | 1 | .60 | 1 | .60 | 1 | .60 | 0 | .88 | 1,732,332 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .88 | 0 | .06• | 1 | .87 | 1 | .93 | 0 | .17 | 1 | .51 | — | 1 | .68 | 0 | .01 | — | 11 | .14 | 20 | .91(h) | 2 | .45 | 2 | .45† | 2 | .45† | 0 | .65† | 37,743 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 22 | .64 | 0 | .19• | (8 | .58) | (8 | .39) | 0 | .02 | 3 | .35 | — | 3 | .37 | — | — | 10 | .88 | (43 | .00) | 2 | .28 | 2 | .28† | 2 | .27† | 1 | .12† | 85,873 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 21 | .07 | 0 | .08• | 3 | .66 | 3 | .74 | 0 | .03 | 2 | .14 | — | 2 | .17 | — | — | 22 | .64 | 19 | .03 | 2 | .29 | 2 | .29 | 2 | .29 | 0 | .39 | 301,705 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 17 | .95 | 0 | .04• | 4 | .50 | 4 | .54 | 0 | .01 | 1 | .41 | — | 1 | .42 | — | — | 21 | .07 | 26 | .81 | 2 | .30 | 2 | .30 | 2 | .30 | 0 | .20 | 368,952 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 16 | .58 | 0 | .05 | 2 | .23 | 2 | .28 | 0 | .11 | 0 | .80 | 0 | .00* | 0 | .91 | — | — | 17 | .95 | 14 | .21(a) | 2 | .30 | 2 | .30 | 2 | .30 | 0 | .17 | 411,071 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .79 | 0 | .05• | 1 | .85 | 1 | .90 | 0 | .24 | 1 | .51 | — | 1 | .75 | 0 | .01 | — | 10 | .95 | 20 | .92(h) | 2 | .45 | 2 | .40† | 2 | .40† | 0 | .58† | 279,060 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 22 | .52 | 0 | .27 | (8 | .57) | (8 | .30) | 0 | .08 | 3 | .35 | — | 3 | .43 | — | — | 10 | .79 | (42 | .94) | 2 | .28 | 2 | .18† | 2 | .17† | 1 | .34† | 326,812 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 20 | .98 | 0 | .08• | 3 | .65 | 3 | .73 | 0 | .05 | 2 | .14 | — | 2 | .19 | — | — | 22 | .52 | 19 | .10 | 2 | .29 | 2 | .28 | 2 | .28 | 0 | .38 | 757,941 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 17 | .91 | 0 | .05 | 4 | .46 | 4 | .51 | 0 | .03 | 1 | .41 | — | 1 | .44 | — | — | 20 | .98 | 26 | .71 | 2 | .30 | 2 | .30 | 2 | .30 | 0 | .20 | 729,067 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 16 | .54 | 0 | .04 | 2 | .24 | 2 | .28 | 0 | .11 | 0 | .80 | 0 | .00* | 0 | .91 | — | — | 17 | .91 | 14 | .25(a) | 2 | .30 | 2 | .30 | 2 | .30 | 0 | .15 | 663,626 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .16 | 0 | .16• | 1 | .90 | 2 | .06 | 0 | .42 | 1 | .51 | — | 1 | .93 | 0 | .01 | — | 11 | .30 | 22 | .23(h) | 1 | .33 | 1 | .33† | 1 | .33† | 1 | .65† | 607,517 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 23 | .22 | 0 | .47 | (8 | .87) | (8 | .40) | 0 | .31 | 3 | .35 | — | 3 | .66 | — | — | 11 | .16 | (42 | .37) | 1 | .28 | 1 | .28† | 1 | .27† | 2 | .23† | 735,622 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 21 | .58 | 0 | .32• | 3 | .74 | 4 | .06 | 0 | .28 | 2 | .14 | — | 2 | .42 | — | — | 23 | .22 | 20 | .31 | 1 | .23 | 1 | .23 | 1 | .23 | 1 | .45 | 2,176,402 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 18 | .38 | 0 | .25 | 4 | .60 | 4 | .85 | 0 | .24 | 1 | .41 | — | 1 | .65 | — | — | 21 | .58 | 28 | .15 | 1 | .22 | 1 | .22 | 1 | .22 | 1 | .26 | 1,728,560 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 16 | .96 | 0 | .20 | 2 | .31 | 2 | .51 | 0 | .29 | 0 | .80 | 0 | .00* | 1 | .09 | — | — | 18 | .38 | 15 | .42(a) | 1 | .23 | 1 | .23 | 1 | .23 | 1 | .18 | 1,221,594 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11 | .18 | 0 | .17 | 1 | .89 | 2 | .06 | 0 | .42 | 1 | .51 | — | 1 | .93 | 0 | .01 | — | 11 | .32 | 22 | .21(h) | 1 | .58 | 1 | .33† | 1 | .33† | 1 | .76† | 24,264 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 23 | .26 | 0 | .43 | (8 | .85) | (8 | .42) | 0 | .31 | 3 | .35 | — | 3 | .66 | — | — | 11 | .18 | (42 | .38) | 1 | .53 | 1 | .28† | 1 | .27† | 2 | .30† | 12,643 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 21 | .57 | 0 | .31• | 3 | .74 | 4 | .05 | 0 | .22 | 2 | .14 | — | 2 | .36 | — | — | 23 | .26 | 20 | .25 | 1 | .48 | 1 | .27 | 1 | .27 | 1 | .40 | 26,512 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 18 | .37 | 0 | .21• | 4 | .59 | 4 | .80 | 0 | .19 | 1 | .41 | — | 1 | .60 | — | — | 21 | .57 | 27 | .82 | 1 | .47 | 1 | .47 | 1 | .47 | 1 | .06 | 26,383 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 16 | .94 | 0 | .19 | 2 | .29 | 2 | .48 | 0 | .25 | 0 | .80 | 0 | .00* | 1 | .05 | — | — | 18 | .37 | 15 | .20(a) | 1 | .48 | 1 | .48 | 1 | .48 | 0 | .99 | 27,993 | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
07-20-09(4)–10-31-09 | 10 | .42 | 0 | .01• | 0 | .87 | 0 | .88 | — | — | — | — | — | — | 11 | .30 | 8 | .45 | 1 | .33 | 1 | .33† | 1 | .33† | 0 | .20† | 3 | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
76
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING International Value Choice Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .56 | 0 | .06 | 2 | .14 | 2 | .20 | 0 | .08 | — | — | 0 | .08 | — | — | 9 | .68 | 29 | .22 | 1 | .83 | 1 | .70† | 1 | .70† | 0 | .86† | 15,615 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .89 | 0 | .06 | (5 | .31) | (5 | .25) | 0 | .10 | 1 | .98 | — | 2 | .08 | — | — | 7 | .56 | (40 | .21) | 1 | .62 | 1 | .65† | 1 | .64† | 0 | .52† | 8,940 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .42 | 0 | .10• | 2 | .65 | 2 | .75 | 0 | .07 | 0 | .21 | — | 0 | .28 | — | — | 14 | .89 | 22 | .48 | 1 | .63 | 1 | .70 | 1 | .70 | 0 | .77 | 16,598 | 88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 10 | .70 | 0 | .12• | 1 | .86 | 1 | .98 | 0 | .10 | 0 | .16 | — | 0 | .26 | — | — | 12 | .42 | 18 | .82 | 1 | .71 | 1 | .70 | 1 | .69 | 1 | .04 | 17,962 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-01-05(4)–10-31-05 | 10 | .00 | 0 | .11• | 0 | .59 | 0 | .70 | — | — | — | — | — | — | 10 | .70 | 7 | .00 | 3 | .44 | 1 | .70 | 1 | .70 | 1 | .08 | 6,115 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .44 | 0 | .02• | 2 | .07 | 2 | .09 | 0 | .00* | — | — | 0 | .00* | — | — | 9 | .53 | 28 | .13 | 2 | .58 | 2 | .45† | 2 | .45† | 0 | .18† | 1,786 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .67 | (0 | .03)• | (5 | .22) | (5 | .25) | 0 | .00* | 1 | .98 | — | 1 | .98 | — | — | 7 | .44 | (40 | .63) | 2 | .37 | 2 | .40† | 2 | .39† | (0 | .27)† | 1,738 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .27 | 0 | .00•,* | 2 | .61 | 2 | .61 | — | 0 | .21 | — | 0 | .21 | — | — | 14 | .67 | 21 | .54 | 2 | .38 | 2 | .45 | 2 | .45 | 0 | .01 | 3,805 | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 10 | .65 | 0 | .04• | 1 | .82 | 1 | .86 | 0 | .08 | 0 | .16 | — | 0 | .24 | — | — | 12 | .27 | 17 | .77 | 2 | .46 | 2 | .45 | 2 | .44 | 0 | .35 | 3,565 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-01-05(4)–10-31-05 | 10 | .00 | 0 | .04• | 0 | .61 | 0 | .65 | — | — | — | — | — | — | 10 | .65 | 6 | .50 | 4 | .19 | 2 | .45 | 2 | .45 | 0 | .36 | 1,427 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .46 | 0 | .01• | 2 | .09 | 2 | .10 | 0 | .00* | — | — | 0 | .00* | — | — | 9 | .56 | 28 | .19 | 2 | .58 | 2 | .45† | 2 | .45† | 0 | .14† | 4,091 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .70 | (0 | .03)• | (5 | .23) | (5 | .26) | — | 1 | .98 | — | 1 | .98 | — | — | 7 | .46 | (40 | .62) | 2 | .37 | 2 | .40† | 2 | .39† | (0 | .25)† | 2,267 | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .29 | 0 | .00* | 2 | .62 | 2 | .62 | — | 0 | .21 | — | 0 | .21 | — | — | 14 | .70 | 21 | .58 | 2 | .38 | 2 | .45 | 2 | .45 | 0 | .00* | 4,930 | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 10 | .66 | 0 | .04• | 1 | .83 | 1 | .87 | 0 | .08 | 0 | .16 | — | 0 | .24 | — | — | 12 | .29 | 17 | .78 | 2 | .46 | 2 | .45 | 2 | .44 | 0 | .33 | 4,189 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-04-05(4)–10-31-05 | 10 | .01 | 0 | .04• | 0 | .61 | 0 | .65 | — | — | — | — | — | — | 10 | .66 | 6 | .49 | 4 | .19 | 2 | .45 | 2 | .45 | 0 | .35 | 1,796 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .57 | 0 | .10• | 2 | .12 | 2 | .22 | 0 | .12 | — | — | 0 | .12 | — | — | 9 | .67 | 29 | .58 | 1 | .39 | 1 | .39† | 1 | .39† | 1 | .19† | 27,654 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .92 | 0 | .09 | (5 | .30) | (5 | .21) | 0 | .16 | 1 | .98 | — | 2 | .14 | — | — | 7 | .57 | (39 | .96) | 1 | .27 | 1 | .30† | 1 | .29† | 0 | .80† | 36,089 | 73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 12 | .42 | 0 | .17• | 2 | .64 | 2 | .81 | 0 | .10 | 0 | .21 | — | 0 | .31 | — | — | 14 | .92 | 23 | .04 | 1 | .24 | 1 | .31 | 1 | .31 | 1 | .29 | 60,413 | 88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 11 | .04 | 0 | .16• | 1 | .22 | 1 | .38 | — | — | — | — | — | — | 12 | .42 | 12 | .50 | 1 | .36 | 1 | .35 | 1 | .34 | 1 | .56 | 36,899 | 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-01-09(4)–10-31-09 | 9 | .18 | 0 | .01• | 0 | .49 | 0 | .50 | — | — | — | — | — | — | 9 | .68 | 5 | .45 | 1 | .39 | 1 | .39† | 1 | .39† | 0 | .30† | 3 | 44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Russia Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 25 | .60 | (0 | .19) | 12 | .20 | 12 | .01 | — | 8 | .08 | — | 8 | .08 | — | — | 29 | .53 | 65 | .55 | 2 | .21 | 2 | .21 | 2 | .21 | (0 | .98) | 373,249 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 78 | .13 | (0 | .48) | (40 | .46) | (40 | .94) | — | 11 | .59 | — | 11 | .59 | — | 0 | .00* | 25 | .60 | (61 | .70) | 2 | .06 | 2 | .06 | 2 | .06 | (0 | .60) | 261,127 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 55 | .81 | �� | (0 | .33)• | 25 | .77 | 25 | .44 | — | 3 | .12 | — | 3 | .12 | — | 0 | .00* | 78 | .13 | 47 | .16 | 1 | .96 | 1 | .96 | 1 | .96 | (0 | .52) | 922,504 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-06 | 33 | .49 | (0 | .27) | 22 | .37 | 22 | .10 | — | — | — | — | — | 0 | .22 | 55 | .81 | 66 | .65 | 1 | .98 | 1 | .98 | 1 | .98 | (0 | .64) | 751,947 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-05 | 25 | .01 | (0 | .00)* | 8 | .39 | 8 | .39 | 0 | .01 | — | — | 0 | .01 | — | 0 | .10 | 33 | .49 | 33 | .98 | 2 | .13 | 2 | .13 | 2 | .13 | (0 | .01) | 271,603 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
09-30-09(4)–10-31-09 | 28 | .27 | (0 | .04)• | 1 | .31 | 1 | .27 | — | — | — | — | — | — | 29 | .54 | 4 | .49 | 1 | .68 | 1 | .68 | 1 | .68 | (1 | .68) | 3 | 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .19 | 0 | .32 | 2 | .13 | 2 | .45 | 0 | .15 | 0 | .24 | — | 0 | .39 | — | — | 12 | .25 | 24 | .43 | 1 | .06 | 0 | .91† | 0 | .91† | 3 | .30† | 103,255 | 396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 10 | .59 | 0 | .27• | 0 | .07 | 0 | .34 | 0 | .62 | 0 | .12 | — | 0 | .74 | — | — | 10 | .19 | 3 | .04 | 1 | .05 | 0 | .93† | 0 | .93† | 2 | .53† | 79,451 | 830 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 10 | .25 | 0 | .31• | 0 | .64 | 0 | .95 | 0 | .43 | 0 | .18 | — | 0 | .61 | — | — | 10 | .59 | 9 | .61 | 1 | .46 | 0 | .90† | 0 | .90† | 3 | .08 | 28,887 | 858 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-30-06(4)–10-31-06 | 10 | .00 | 0 | .08• | 0 | .23 | 0 | .31 | 0 | .06 | — | — | 0 | .06 | — | — | 10 | .25 | 3 | .13 | 1 | .38 | 0 | .90 | 0 | .90 | 2 | .41 | 25,784 | 451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .16 | 0 | .29 | 2 | .07 | 2 | .36 | 0 | .12 | 0 | .24 | — | 0 | .36 | — | — | 12 | .16 | 23 | .56 | 1 | .81 | 1 | .66† | 1 | .66† | 2 | .59† | 5,135 | 396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 10 | .55 | 0 | .18• | 0 | .08 | 0 | .26 | 0 | .53 | 0 | .12 | — | 0 | .65 | — | — | 10 | .16 | 2 | .26 | 1 | .80 | 1 | .68† | 1 | .68† | 1 | .71 | 4,085 | 830 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 10 | .24 | 0 | .25• | 0 | .62 | 0 | .87 | 0 | .38 | 0 | .18 | — | 0 | .56 | — | — | 10 | .55 | 8 | .74 | 2 | .21 | 1 | .65† | 1 | .65† | 2 | .44 | 342 | 858 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-30-06(4)–10-31-06 | 10 | .00 | 0 | .06• | 0 | .22 | 0 | .28 | 0 | .04 | — | — | 0 | .04 | — | — | 10 | .24 | 2 | .84 | 2 | .13 | 1 | .65 | 1 | .65 | 2 | .00 | 28 | 451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
77
Table of Contents
FINANCIAL HIGHLIGHTS (continued)
Selected data for a share of beneficial interest outstanding throughout each year or period.
Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
from | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment | Supplemental | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
operations | Less distributions | Ratios to average net assets | Data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
asset | Net | Net | Expenses net of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
value, | realized | Total | asset | Expenses | fee waivers | Expenses net of | Net assets, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
beginning | Net | and | from | From net | Redemption | value, | before | and/or | all | Net investment | end | Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of year | investment | unrealized | investment | investment | From net | From return of | Total | Payment | fees applied | end of | Total | reductions/ | recoupments, | reductions/ | income | of year or | turnover | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
or period | income (loss) | gain (loss) | operations | income | realized gains | capital | distributions | by affiliate | to capital | year or period | Return(1) | additions(2) | if any(2)(3) | additions(2)(3) | (loss)(2)(3) | period | rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | ($) | (%) | (%) | (%) | (%) | (%) | ($000’s) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Global Bond Fund (continued) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .20 | 0 | .28• | 2 | .08 | 2 | .36 | 0 | .12 | 0 | .24 | — | 0 | .36 | — | — | 12 | .20 | 23 | .48 | 1 | .81 | 1 | .66† | 1 | .66† | 2 | .54† | 45,773 | 396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 10 | .59 | 0 | .18• | 0 | .09 | 0 | .27 | 0 | .54 | 0 | .12 | — | 0 | .66 | — | — | 10 | .20 | 2 | .31 | 1 | .80 | 1 | .68† | 1 | .68† | 1 | .71† | 29,009 | 830 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 10 | .24 | 0 | .24• | 0 | .64 | 0 | .88 | 0 | .35 | 0 | .18 | — | 0 | .53 | — | — | 10 | .59 | 8 | .90 | 2 | .21 | 1 | .65† | 1 | .65† | 2 | .33 | 1,627 | 858 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-30-06(4)–10-31-06 | 10 | .00 | 0 | .06• | 0 | .22 | 0 | .28 | 0 | .04 | — | — | 0 | .04 | — | — | 10 | .24 | 2 | .82 | 2 | .13 | 1 | .65 | 1 | .65 | 1 | .68 | 36 | 451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .21 | 0 | .45• | 2 | .04 | 2 | .49 | 0 | .24 | 0 | .24 | — | 0 | .48 | — | — | 12 | .22 | 24 | .94 | 0 | .71 | 0 | .56† | 0 | .56† | 3 | .89† | 136,178 | 396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 10 | .58 | 0 | .28• | 0 | .14 | 0 | .42 | 0 | .67 | 0 | .12 | — | 0 | .79 | — | — | 10 | .21 | 3 | .78 | 0 | .74 | 0 | .62† | 0 | .62† | 2 | .69 | 503 | 830 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 10 | .25 | 0 | .35• | 0 | .63 | 0 | .98 | 0 | .47 | 0 | .18 | — | 0 | .65 | — | — | 10 | .58 | 9 | .88 | 1 | .00 | 0 | .61† | 0 | .61† | 3 | .47 | 1 | 858 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-30-06(4)–10-31-06 | 10 | .00 | 0 | .09• | 0 | .23 | 0 | .32 | 0 | .07 | — | — | 0 | .07 | — | — | 10 | .25 | 3 | .23 | 1 | .03 | 0 | .55 | 0 | .55 | 2 | .68 | 1 | 451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10 | .15 | 0 | .37• | 2 | .04 | 2 | .41 | 0 | .26 | 0 | .24 | — | 0 | .50 | — | — | 12 | .06 | 24 | .26 | 1 | .06 | 0 | .91† | 0 | .91† | 3 | .30† | 3,126 | 396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-04-08(4)–10-31-08 | 10 | .65 | 0 | .10• | (0 | .49) | (0 | .39) | 0 | .11 | — | — | 0 | .11 | — | — | 10 | .15 | (3 | .70) | 1 | .05 | 0 | .93† | 0 | .93† | 2 | .47† | 222 | 830 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-01-09(4)–10-31-09 | 11 | .22 | 0 | .14• | 1 | .03 | 1 | .17 | 0 | .33 | — | — | 0 | .33 | — | — | 12 | .06 | 10 | .54 | 0 | .71 | 0 | .56† | 0 | .56† | 2 | .85† | 1,533 | 396 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ING Diversified International Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .30 | 0 | .24• | 1 | .59 | 1 | .83 | 0 | .86 | — | — | 0 | .86 | — | — | 8 | .27 | 28 | .22 | 0 | .76 | 0 | .38 | 0 | .38 | 3 | .45 | 129,966 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .98 | 0 | .17• | (7 | .50) | (7 | .33) | 0 | .26 | 0 | .09 | — | 0 | .35 | — | — | 7 | .30 | (50 | .04) | 0 | .57 | 0 | .31 | 0 | .31 | 1 | .41 | 167,282 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .61 | 0 | .05• | 3 | .38 | 3 | .43 | 0 | .06 | — | — | 0 | .06 | — | — | 14 | .98 | 29 | .66 | 0 | .55 | 0 | .21 | 0 | .21 | 0 | .37 | 383,364 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | (0 | .03)• | 1 | .64 | 1 | .61 | — | — | — | — | — | — | 11 | .61 | 16 | .10 | 0 | .66 | 0 | .35 | 0 | .35 | (0 | .35) | 170,108 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .22 | 0 | .17• | 1 | .61 | 1 | .78 | 0 | .77 | — | — | 0 | .77 | — | — | 8 | .23 | 27 | .46 | 1 | .51 | 1 | .13 | 1 | .13 | 2 | .43 | 19,919 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .84 | 0 | .07 | (7 | .43) | (7 | .36) | 0 | .17 | 0 | .09 | — | 0 | .26 | — | — | 7 | .22 | (50 | .43) | 1 | .32 | 1 | .06 | 1 | .06 | 0 | .67 | 20,167 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .54 | (0 | .04) | 3 | .35 | 3 | .31 | 0 | .01 | — | — | 0 | .01 | — | — | 14 | .84 | 28 | .68 | 1 | .30 | 0 | .96 | 0 | .96 | (0 | .34) | 43,667 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | (0 | .10)• | 1 | .64 | 1 | .54 | — | — | — | — | — | — | 11 | .54 | 15 | .40 | 1 | .41 | 1 | .10 | 1 | .10 | (1 | .10) | 23,035 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .21 | 0 | .17• | 1 | .60 | 1 | .77 | 0 | .77 | — | — | 0 | .77 | — | — | 8 | .21 | 27 | .32 | 1 | .51 | 1 | .13 | 1 | .13 | 2 | .54 | 71,831 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .83 | 0 | .07 | (7 | .42) | (7 | .35) | 0 | .18 | 0 | .09 | — | 0 | .27 | — | — | 7 | .21 | (50 | .43) | 1 | .32 | 1 | .06 | 1 | .06 | 0 | .67 | 78,834 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .54 | (0 | .05)• | 3 | .35 | 3 | .30 | 0 | .01 | — | — | 0 | .01 | — | — | 14 | .83 | 28 | .63 | 1 | .30 | 0 | .96 | 0 | .96 | (0 | .39) | 168,661 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | (0 | .10)• | 1 | .64 | 1 | .54 | — | — | — | — | — | — | 11 | .54 | 15 | .40 | 1 | .41 | 1 | .10 | 1 | .10 | (1 | .10) | 69,825 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .30 | 0 | .31• | 1 | .55 | 1 | .86 | 0 | .90 | — | — | 0 | .90 | — | — | 8 | .26 | 28 | .78 | 0 | .48 | 0 | .10 | 0 | .10 | 4 | .55 | 3,209 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .99 | 0 | .21 | (7 | .53) | (7 | .32) | 0 | .28 | 0 | .09 | — | 0 | .37 | — | — | 7 | .30 | (49 | .97) | 0 | .32 | 0 | .06 | 0 | .06 | 1 | .69 | 16 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-07 | 11 | .63 | 0 | .03• | 3 | .41 | 3 | .44 | 0 | .08 | — | — | 0 | .08 | — | — | 14 | .99 | 29 | .69 | 0 | .30 | 0 | .09 | 0 | .09 | 0 | .21 | 32 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-21-05(4)–10-31-06 | 10 | .00 | (0 | .01)• | 1 | .64 | 1 | .63 | — | — | — | — | — | — | 11 | .63 | 16 | .30 | 0 | .45 | 0 | .10 | 0 | .10 | (0 | .13) | 4 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .29 | 0 | .10• | 1 | .74 | 1 | .84 | 0 | .89 | — | — | 0 | .89 | — | — | 8 | .24 | 28 | .45 | 0 | .76 | 0 | .38 | 0 | .38 | 1 | .30 | 1,911 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06-04-08(4)–10-31-08 | 12 | .99 | 0 | .02• | (5 | .72) | (5 | .70) | — | — | — | — | — | — | 7 | .29 | (43 | .88) | 0 | .57 | 0 | .31 | 0 | .31 | 0 | .48 | 140 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .22 | 0 | .20 | 1 | .60 | 1 | .80 | 0 | .84 | — | — | 0 | .84 | — | — | 8 | .18 | 28 | .13 | 1 | .01 | 0 | .63 | 0 | .63 | 2 | .94 | 198 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-08 | 14 | .82 | 0 | .15 | (7 | .44) | (7 | .29) | 0 | .22 | 0 | .09 | — | 0 | .31 | — | — | 7 | .22 | (50 | .18) | 0 | .82 | 0 | .56 | 0 | .56 | 1 | .26 | 183 | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12-12-06(4)–10-31-07 | 12 | .19 | (0 | .05)• | 2 | .76 | 2 | .71 | 0 | .08 | — | — | 0 | .08 | — | — | 14 | .82 | 22 | .33 | 0 | .80 | 0 | .46 | 0 | .46 | (0 | .46) | 432 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 7 | .29 | 0 | .21• | 1 | .65 | 1 | .86 | 0 | .90 | — | — | 0 | .90 | — | — | 8 | .25 | 28 | .84 | 0 | .48 | 0 | .10 | 0 | .10 | 2 | .96 | 2,545 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
02-12-08(4)–10-31-08 | 12 | .17 | 0 | .06• | (4 | .94) | (4 | .88) | — | — | — | — | — | — | 7 | .29 | (40 | .10) | 0 | .32 | 0 | .06 | 0 | .06 | 0 | .80 | 1,506 | 55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
See Accompanying Notes to Financial Statements
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FINANCIAL HIGHLIGHTS (continued)
(1) | Total return is calculated assuming reinvestment of all dividends, capital gain distributions and return of capital distributions, if any, at net asset value and excluding the deduction of sales charges. Total return for periods less than one year is not annualized. | |
(2) | Annualized for periods less than one year. | |
(3) | Expense ratios reflect operating expenses of a Fund. Expenses before reductions do not reflect amounts reimbursed by the Investment Adviser and/or Distributor or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by a Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the Investment Adviser and/or Distributor but prior to reductions from brokerage commission recapture arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by a Fund. Net investment income (loss) is net of all such additions or reductions. | |
(4) | Commencement of operations. | |
† | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.005% impact on the expense ratio and net investment income or loss ratio. | |
* | Amount is more than $(0.005) or more than (0.005)% or less than $0.005 or less than 0.005%. | |
** | Amount is less than $500. | |
• | Calculated using average number of shares outstanding throughout the period. | |
(a) | There was no impact on total return by the affiliate payment. | |
(b) | Effective November 1, 2004, the Fund adopted a policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the twelve months ended October 31, 2005 was to decrease the net investment income per share by $0.12 for Class A, $0.10 for Class B, $0.11 for Class C and $0.30 for Class I, increase net realized and unrealized gain on investments per share by $0.12 for Class A, $0.10 for Class B, $0.11 for Class C and $0.30 for Class I and decrease the ratio of net investment income to average net assets from 2.31% to 1.58% for Class A, 1.51% to 0.79% for Class B, 1.51% to 0.78% for Class C and 2.60% to 0.85% for Class I. | |
(c) | In 2005, 0.26% for Class A, 0.26% for Class B, 0.27% for Class C and 0.25% for Class Q of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.50% for Class A, 20.61% for Class B, 20.56% for Class C and 21.64% for Class Q. | |
(d) | In 2005, 0.34% for Class A, 0.33% for Class B, 0.36% for Class C and Class Q of the total return consists of payment by affiliate. Excluding this item, total return would have been 28.63%, 27.82%, 27.80% and 28.96% on Class A, Class B, Class C and Class Q, respectively. | |
(e) | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, Emerging Countries total return would have been 50.54%, 49.21%, 49.19%, 51.26%, 50.75% and 51.22% on Classes A,B,C,I,Q and W, respectively. | |
(f) | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, Index Plus International Equity total return would have been 26.91%, 25.92%, 25.96%, 27.32% and 27.11% on Classes A,B,C,I and Q, respectively. | |
(g) | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, International SmallCap Multi-Manager total return would have been 41.91%, 40.78%, 40.97%, 42.75%, 42.20%, 42.30% and 42.70% on Classes A,B,C,I,O,Q and W, respectively. | |
(h) | Excluding a payment by affiliate in the fiscal year ended October 31, 2009, International Value total return would have been 21.64%, 20.80%, 20.81%, 22.12% and 22.10% on Classes A,B,C,I and Q, respectively. |
See Accompanying Notes to Financial Statements
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009
NOTE 1 — ORGANIZATION
Organization. The ING Funds included in this report are comprised of ING Mutual Funds (“IMF”) and ING Mayflower Trust (“IMT”) (each a “Registrant” and collectively, the “Registrants”); both are organized as open-end investment management companies registered under the Investment Company Act of 1940, as amended (“1940 Act”).
IMF is a Delaware statutory trust organized December 18, 1992 with seventeen separate active series, all of which are included in this report, (each, a “Fund” and collectively, the “IMF Funds”): 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 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 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 Russia Fund (“Russia”), 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 dated February 27, 2009.
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 average net assets. Expenses directly attributable to a particular fund (including advisory, administration, custodial transaction-based, registration, other professional, distribution and/or service fees, certain taxes, and offering costs) are charged directly to that Fund. Differences in per share dividend rates generally result from the differences in separate class expenses, including distribution and shareholder servicing fees. Class B shares, along with their pro rata reinvested dividend shares, automatically convert to Class A shares eight years after purchase.
Emerging Countries does not impose any front-end sales charge (load) on purchases of Class A shares of Emerging Countries by its former Class M shareholders for the life of their account.
Diversified International seeks to achieve its investment objective by investing in other 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 acquired with more than 60 days to maturity are fair valued using matrix pricing |
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
methods determined by an independent pricing service which takes into consideration such factors as yields, maturities, liquidity, ratings and traded prices in similar or identical securities. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of fair market value obtained from yield data relating to investments or securities with similar characteristics. |
Securities and assets for which market quotations are not readily available (which may include certain restricted securities which are subject to limitations as to their sale) are valued at their fair values, as defined by the 1940 Act, and as determined in good faith by or under the supervision of the Funds’ Board in accordance with methods that are specifically authorized by the Board. Securities traded on exchanges, including foreign exchanges, which close earlier than the time that a Fund calculates its next net asset value (“NAV”) may also be valued at their fair values, as defined by the 1940 Act, and as determined in good faith by or under the supervision of a Fund’s Board, in accordance with methods that are specifically authorized by the Board. The valuation techniques applied in any specific instance are likely to vary from case to case. With respect to a restricted security, for example, consideration is generally given to the cost of the investment, the market value of any unrestricted securities of the same class at the time of valuation, the potential expiration of restrictions on the security, the existence of any registration rights, the costs to a Fund related to registration of the security, as well as factors relevant to the issuer itself. Consideration may also be given to the price and extent of any public trading in similar securities of the issuer or comparable companies’ securities.
For all Funds the value of a foreign security traded on an exchange outside the United States is generally based on its price on the principal foreign exchange where it trades as of the time a Fund determines its NAV or if the foreign exchange closes prior to the time the Fund determines its NAV, the most recent closing price of the foreign security on its principal exchange. Trading in certain non-U.S. securities may not take place on all days on which the New York Stock Exchange (“NYSE”) is open. Further, trading takes place in various foreign markets on days on which the NYSE is not open. Consequently, the calculation of a Fund’s NAV may not take place contemporaneously with the determination of the prices of securities held by a Fund in foreign securities markets. Further, the value of a Fund’s assets may be significantly affected by foreign trading on days when a shareholder cannot purchase or redeem shares of the Fund. In calculating a Fund’s NAV, foreign securities in foreign currency are converted to U.S. dollar equivalents.
If an event occurs after the time at which the market for foreign securities held by a Fund closes but before the time that a Fund’s next NAV is calculated, such event may cause the closing price on the foreign exchange to not represent a readily available reliable market value quotation for such securities at the time a Fund determines its NAV. In such a case, a Fund will use the fair value of such securities as determined under the Funds’ valuation procedures. Events after the close of trading on a foreign market that could require a Fund to fair value some or all of its foreign securities include, among others, securities trading in the U.S. and other markets, corporate announcements, natural and other disasters, and political and other events. Among other elements of analysis in the determination of a security’s fair value, the Board has authorized the use of one or more independent research services to assist with such determinations. An independent research service may use statistical analyses and quantitative models to help determine fair value as of the time a Fund calculates its NAV. There can be no assurance that such models accurately reflect the behavior of the applicable markets or the effect of the behavior of such markets on the fair value of securities, or that such markets will continue to behave in a fashion that is consistent with such models. Unlike the closing price of a security on an exchange, fair value determinations employ elements of judgment. Consequently, the fair value assigned to a security may not represent the actual value that a Fund could obtain if it were to sell the security at the time of the close of the NYSE. Pursuant to procedures adopted by the Board, a Fund is not obligated to use the fair valuations suggested by any research service, and
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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 a Fund determines its NAV, events that occur between the time of the close of the foreign market on which they are traded and the close of regular trading on the NYSE will not be reflected in a Fund’s NAV. Investments in securities maturing in 60 days or less from the date of acquisition are valued at amortized cost which generally 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 held in Underlying Funds maturing in 60 days or less from the date of acquisition are valued at amortized cost which generally approximates market value. Securities prices may be obtained from automated pricing services. Shares of investment companies held by the Underlying Funds will generally be valued at the latest NAV reported by that investment company.
Fair value is defined as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each investment asset or liability of the Funds is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as “Level 1”, inputs other than quoted prices for an asset or liability that are observable are classified as “Level 2” and unobservable inputs, including the adviser’s or sub-adviser’s judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as “Level 3”. The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Securities valued at amortized cost are generally considered to be Level 2 securities under applicable accounting rules. A table summarizing the Funds’ investments under these levels of classification is included following the Portfolios of Investments.
For the year ended October 31, 2009, there have been no significant changes to the fair valuation methodologies.
On April 9, 2009, the Financial Accounting Standards Board (“FASB”) issued additional guidance related to fair value measurement entitled 820, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. This guidance requires enhanced disclosures about the inputs and valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques and related inputs, if any, during the period. In addition, the three-level hierarchy disclosure and the level three roll-forward disclosure are to be expanded for each major category of equity and debt securities. There was no change to the financial position of the Funds and the results of their operations due to the adoption of this guidance and all disclosures have been made for the current
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
period as part of the Notes to Financial Statements and Portfolio of Investments.
On March 19, 2008, the FASB issued new disclosure requirements related to derivatives entitled, “Disclosure about Derivative Instruments 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, and (c) how derivatives affect an entity’s financial position, financial performance, and cash flows. Enhanced disclosures regarding credit-risk-related contingent features of derivative instruments is also required. All changes to disclosures have been incorporated for the current period as part of the Notes to Financial Statements and Portfolio of Investments.
Effective for fiscal years and interim periods ending after November 15, 2008, the FASB established new disclosure requirements entitled, “Disclosures about Credit Derivatives and Certain Guarantees”. These amendments require enhanced disclosure regarding credit derivatives sold, including (1) the nature and terms of the credit derivative, reasons for entering into the credit derivative, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative, (2) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative, (3) the fair value of the credit derivative, and (4) the nature of any recourse provisions and assets held either as collateral or by third parties. These amendments require additional disclosures about the current status of the payment/performance risk of a guarantee. All changes to accounting policies have been incorporated for the current period as part of the Notes to Financial Statements and Portfolio of Investments.
B. | Security Transactions and Revenue Recognition. Securities transactions are accounted for on the trade date. Realized gains and losses are reported on the basis of identified cost of securities sold. Interest income is recorded on an accrual basis. Dividend income is recorded, net of any applicable withholding tax, on the ex-dividend date, or for certain foreign securities, when the information becomes available to the Funds. Premium amortization and discount accretion are determined by the effective yield method. |
For Diversified International, capital gain dividends from Underlying Funds, if any, are recorded as distributions of realized gains from affiliated Underlying Funds.
Global Real Estate estimates components of distributions from real estate investment trusts (“REITs”). Distributions received in excess of income are recorded as a reduction of cost of the related investments. If the Funds no longer own the applicable securities, any distributions received in excess of income are recorded as realized gains.
C. | Foreign Currency Translation. The books and records of the Funds and Underlying Funds are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis: |
(1) | Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at the end of the day. | |
(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,
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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. | Risk Exposures and the use of Derivative Instruments. The Funds’ investment objectives permit them to enter into various types of derivatives contracts, including, but not limited to, forward foreign currency exchange contracts, futures, purchased options, written options, and swaps. In doing so, the Funds will employ strategies in differing combinations to permit them to increase or decrease the level of risk, or change the level or types of exposure to market risk factors. This may allow the Funds to pursue their objectives more quickly, and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors. |
Market Risk Factors. In pursuit of their investment objectives, the Funds may seek to use derivatives to increase or decrease their exposure to the following market risk factors:
Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.
Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.
Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.
Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer maturities, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter maturities.
Risks of Investing in Derivatives. The Funds use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.
The use of these strategies involves certain special risks, including a possible imperfect correlation, or even no correlation, between price movements of derivative instruments and price movements of related investments. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in related investments or otherwise, due to the possible inability of the Funds to purchase or sell a portfolio security at a time that otherwise would be favorable or the possible need to sell a portfolio security at a disadvantageous time because the Funds are required to maintain asset coverage or offsetting positions in connection with transactions in derivative instruments. Additional
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associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the following notes.
Counterparty Credit Risk. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. The Funds derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Funds intend to enter into financial transactions with counterparties that they believe to be creditworthy at the time of the transaction. To reduce this risk the Funds have entered into master netting arrangements, established within the Funds International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements. These agreements are with select counterparties that govern transactions, over-the-counter derivative and forward foreign exchange contracts, entered into by the Funds and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement.
A Fund may also enter into collateral agreements with certain counterparties to further mitigate counterparty risk on swaps, over the counter (“OTC”) derivatives and forward foreign currency contracts. Subject to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with a certain counterparty. Collateral pledged to or from a Fund is held in a segregated account by a third-party agent and can be in the form of cash or debt securities issued by the U.S. government or related agencies. At October 31, 2009, Global Bond has pledged $1,150,000 in collateral.
E. | Forward Foreign Currency Transactions and Futures Contracts. Each Fund and Underlying Fund may enter into forward foreign currency exchange transactions to convert to and from different foreign currencies and to and from the U.S. dollar, generally in connection with the planned purchases or sales of securities. The Funds and Underlying Funds either enter into these transactions on a spot basis at the spot rate prevailing in the foreign currency exchange market or may use forward foreign currency contracts to purchase or sell foreign currencies. When the contract is fulfilled or closed, gains or losses are realized. Until then, the gain or loss is included in unrealized appreciation or depreciation. Risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their forward contracts and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar. |
For the year ended October 31, 2009, certain Funds have entered into forward foreign currency contracts with the obligation to buy and sell specified foreign currencies in the future at a currently negotiated forward rate in order to increase or decrease exposure to foreign exchange rate risk. The Funds use forward foreign currency contracts to enhance potential gain, hedge against anticipated currency exchange rates, and to maintain diversity and liquidity of the portfolio.
For the year-ended October 31, 2009, the total amount of all open forward foreign currency contracts as presented following the Portfolio of Investments is indicative of the volume of this derivative type.
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
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defined in applicable regulations, interpretations and practice. A futures contract obligates the seller of the contract to deliver and the purchaser of the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time for a specified price. Upon entering into such a contract, a Fund or an Underlying Fund is required to deposit and maintain as collateral such initial margin as required by the exchange on which the contract is traded. Pursuant to the contract, a Fund or an Underlying Fund agrees to receive from or pay to the broker an amount equal to the daily fluctuations in the value of the contract. Such receipts or payments are known as variation margin and are recorded as unrealized gains or losses by the Fund or an Underlying Fund. When the contract is closed, the Fund or Underlying Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are exposed to the market risk factor of the underlying financial instrument. During the year ended October 31, 2009, Global Bond has both purchased and sold futures contracts on various bonds and notes to increase or decrease exposure to interest rate risk. Additional associated risks of entering into futures contracts include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities.
For the year-ended October 31, 2009, the total amount of all open futures contracts as presented following the Portfolio of Investments represents an increase during the year for this type of derivative instrument.
F. | Options Contracts. The Funds may write call and put options on futures, swaps (“swaptions”), securities, commodities or foreign currencies it owns or in which it may invest. Writing put options tends to increase the Funds exposure to the underlying instrument. Writing call options tends to decrease the Funds exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding on the Statements of Assets and Liabilities. Certain options may be written with premiums to be determined on a future date. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain or loss. A Fund as a writer of an option has no control over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Funds may not be able to enter into a closing transaction because of an illiquid market. |
The Funds may also purchase put and call options. Purchasing call options tends to increase the Funds exposure to the underlying instrument. Purchasing put options tends to decrease the Funds exposure to the underlying instrument. The Funds pays a premium which is included on the Statements of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss.
During the year ended October 31, 2009, Global Bond has both purchased and written options on foreign currencies to increase or decrease exposure to foreign exchange rate risk. The total notional amounts, at absolute value, as presented in the Portfolio of Investments and the table
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following, represents an increase in activity during the year for this type of derivative.
G. | Swap Agreements. Certain Funds may enter into swap agreements. A swap is an agreement between two parties pursuant to which each party agrees to make one or more payments to the other at specified future intervals based on the return of an asset (such as a stock, bond or currency) or non-asset reference (such as an interest rate or index). The swap agreement will specify the “notional” amount of the asset or non-asset reference to which the contract relates. Subsequent changes in market value, if any, are calculated based upon changes in the performance of the asset or non-asset reference multiplied by the notional value of the contract. A Fund may enter into credit default, interest rate, total return and currency swaps to manage its exposure to credit, currency and interest rate risk. All outstanding swap agreements are reported following each Fund’s Portfolio of Investments. |
Swaps are marked to market daily using quotations primarily from third party pricing services, counterparties or brokers. The value of the swap contract is recorded on each Fund’s Statement of Assets and Liabilities. During the term of the swap, changes in the value of the swap, if any, are recorded as unrealized gains or losses on the Statement of Operations. Upfront payments paid or received by a Fund when entering into the agreements are reported on the Statement of Assets and Liabilities and as a component of the changes in unrealized gains or losses on the Statement of Operations. These upfront payments represent the amounts paid or received when initially entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and the prevailing market conditions. The upfront payments are included as a component in the realized gains or losses on each Fund’s Statement of Operations upon termination or maturity of the swap. A Fund also records net periodic payments paid or received on the swap contract as a realized gain or loss on the Statements of Operations.
Entering into swap agreements involves the risk that the maximum potential loss of an investment exceeds the current value of the investment as reported on each Fund’s Statements of Assets and Liabilities. Other risks involve the possibility that the counterparty to the agreements may default on its obligation to perform, that there will be no liquid market for these investments and that unfavorable changes in the market will have a negative impact on the value of the index or securities underlying the respective swap agreement.
Credit Default Swap Contracts. A credit default swap is a bilateral agreement between counterparties in which the buyer of the protection agrees to make a stream of periodic payments to the seller of protection in exchange for the right to receive a specified return in the event of a default or other credit event for a referenced entity, obligation or index. As a seller of protection on credit default swaps, a Fund will generally receive from the buyer a fixed payment stream based on the notional amount of the swap contract. This fixed payment stream will continue until the swap contract expires or a defined credit event occurs.
A Fund is subject to credit risk in the normal course of pursuing its investment objectives. As a seller of protection in a credit default swap, a Fund may execute these contracts to manage its exposure to the market or certain sectors of the market. A Fund may also enter into credit default swaps to speculate on changes in an issuer’s credit quality, to take advantage of perceived spread advantages, or to offset an existing short equivalent (i.e. buying protection on an equivalent reference entity).
Certain Funds may sell credit default swaps which expose these Funds to the risk of loss from credit risk- related events specified in the contract. Although contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/moratorium. If a Fund is a seller of protection, and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will generally either (i) pay to the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations, or underlying securities comprising a
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referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising a referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues are disclosed in each Fund’s Portfolio of Investment and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swaps on asset-backed securities or credit indices, the quoted market prices and resulting market values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
The maximum amount of future payments (undiscounted) that a Fund as seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of October 31, 2009, for which a Fund is seller of protection, are disclosed in each Fund’s Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreements, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.
For the year ended October 31, 2009, Global Bond has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual securities and to hedge against anticipated potential credit events.
For the year ended October 31, 2009, Global Bond has sold credit protection through credit default swaps to gain exposure to the credit risk of individual securities that are either unavailable or considered to be less attractive in the bond market.
For the year ended October 31, 2009, the total notional amounts, at absolute value, of all open credit default swap positions as presented following the Portfolio of Investments represents a decrease in activity during the year for this type of derivative instrument.
Interest Rate Swap Agreements. Certain Funds are subject to interest risk exposure in the normal course of pursuing their investment objectives. Because the Funds hold fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Funds may enter into interest rate swap agreements. For the year ended October 31, 2009, Global Bond has entered into interest rate swaps in which it pays a floating interest rate and receives a fixed interest rate in order to increase exposure to interest rate risk.
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For the year ended October 31, 2009, the total notional amounts, at absolute value, of all open interest rate swap positions as presented following the Portfolio of Investments represents an increase in activity during the year for this type of derivative instrument.
H. | Distributions to Shareholders. The Funds record distributions to their shareholders on ex-dividend date. Each Fund pays dividends and capital gains, if any, annually (except, Global Equity Dividend, Global Real Estate, Asia-Pacific Real Estate, European Real Estate, International Equity Dividend and International Real Estate, which pay dividends, if any, quarterly and Global Bond, which pay dividends, if any, monthly). The Funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. The characteristics of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies. |
I. | Federal Income Taxes. It is the policy of 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. Management has considered the sustainability of the Funds’ tax positions taken on federal income tax returns for all open tax years in making this determination. No capital gain distributions shall be made until 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.
J. | Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
K. | 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. |
L. | 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. |
M. | Securities Lending. Each Fund and Underlying Fund has the option to temporarily loan up to 331/3% of its total assets to brokers, dealers or other financial institutions in exchange for a negotiated lender’s fee. The borrower is required to fully collateralize the loans with cash or U.S. government securities. Generally, in the event of counterparty default, each Fund and Underlying Fund has the right to use collateral to offset losses incurred. There would be potential loss to a Fund or Underlying Fund in the event the Fund or Underlying Fund is |
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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. |
N. | 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. |
O. | Delayed-Delivery or When-Issued Transaction. The Funds and Underlying Funds may purchase or sell securities on a when-issued or forward commitment basis. The price of the securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The market value of these securities is identified in each Fund’s Portfolio of Investments. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Funds and Underlying Funds are required to segregate liquid assets sufficient to cover the purchase price. |
P. | Indemnifications. In the normal course of business, each Trust may enter into contracts that provide certain indemnifications. Each Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. |
NOTE 3 — INVESTMENT TRANSACTIONS
For the year ended October 31, 2009, the cost of purchases and the proceeds from the sales of securities, excluding U.S. government and short-term securities, were as follows:
Purchases | Sales | |||||||
Global Equity Dividend | $ | 111,988,968 | $ | 130,044,495 | ||||
Global Natural Resources | 68,242,921 | 69,319,241 | ||||||
Global Real Estate | 987,535,200 | 817,097,762 | ||||||
Global Value Choice | 127,921,289 | 98,430,253 | ||||||
Asia-Pacific Real Estate | 3,607,352 | 6,862,036 | ||||||
Emerging Countries | 153,030,772 | 160,605,008 | ||||||
European Real Estate | 6,545,851 | 4,294,228 | ||||||
Foreign | 444,766,056 | 526,080,191 | ||||||
Greater China | 47,592,599 | 42,279,788 | ||||||
Index Plus International Equity | 169,414,414 | 183,223,319 | ||||||
International Capital Appreciation | 45,484,474 | 58,571,449 | ||||||
International Real Estate | 311,829,577 | 303,490,936 | ||||||
International SmallCap Multi-Manager | 358,652,732 | 455,838,322 | ||||||
International Value | 1,540,192,173 | 2,140,659,898 | ||||||
International Value Choice | 19,241,926 | 30,722,729 | ||||||
Russia | 111,590,800 | 109,578,072 | ||||||
Global Bond | 318,584,649 | 170,741,608 | ||||||
Diversified International | 71,380,954 | 151,699,071 |
Purchases and sales of long-term U.S. government securities not included above were as follows:
Purchases | Sales | |||||||
Global Bond | $ | 517,107,180 | $ | 506,230,106 |
NOTE 4 — REDEMPTION FEES
A 2% redemption fee is charged on shares of Russia that are redeemed (including in connection with an exchange) within 365 days or less from their date of purchase. The redemption fee is recorded as an addition to paid-in capital. Total redemption fee proceeds for the year ended October 31, 2009 and year ended October 31, 2008 were $262,776 and $1,344,090, 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
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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 | ||
Daily Net Assets | ||
Global Equity Dividend | 0.70% | |
Global Natural Resources | 1.00% on first $50 million; and 0.75% thereafter | |
Global Real Estate | 0.80% on the first $250 million; 0.775% on the next $250 million; and 0.70% thereafter | |
Global Value Choice | 0.90% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter | |
Asia-Pacific Real Estate | 1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% thereafter | |
Emerging Countries(1) | 1.25% | |
European Real Estate | 1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% thereafter | |
Foreign(1) | 1.00% on the first $500 million; and 0.90% thereafter | |
Greater China | 1.15% on the first $100 million; 1.05% on the next $150 million; and 0.95% thereafter | |
Index Plus International Equity | 0.55% | |
International Capital Appreciation | 0.85% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter | |
International Real Estate | 1.00% on the first $250 million; 0.90% on the next $250 million; and 0.80% thereafter | |
International SmallCap Multi-Manager(1) | 1.00% on first $500 million; 0.90% on next $500 million; and 0.85% thereafter | |
International Value | 1.00% on the first $5 billion; 0.95% on the next $2.5 billion; 0.90% on the next $2.5 billion; and 0.85% of assets in excess of $10 billion (applied to all assets of the Fund) | |
International Value Choice | 1.00% | |
Russia | 1.25% | |
Global Bond | 0.40% | |
Diversified International | 0.00% |
(1) | ING Investments has contractually agreed to waive a portion of the advisory fee for Emerging Countries and Foreign. These advisory fee waivers will continue through at least March 1, 2010 for Emerging Countries and Foreign; and March 1, 2011 for International SmallCap Multi-Manager. Effective June 1, 2009, ING Investments has also contractually agreed to waive a portion of the advisory fee for International SmallCap Multi-Manager. There is no guarantee that these waivers will continue after this date. These agreements will only renew if ING Investments elects to renew them. |
ING Investments has contractually agreed to waive a portion of the advisory fee for Emerging Countries, Foreign, and International SmallCap Multi-Manager. The waiver is calculated as 50% of the difference between the former sub-advisory fee minus the new sub-advisory fee.
For the year ended October 31, 2009, ING Investments waived $148,531, $41,093, and $16,871 in advisory fees for Emerging Countries, Foreign, and International SmallCap Multi-Manager, respectively.
Each of the Funds has entered into a sub-advisory agreement with each sub-adviser. These sub-advisers provide investment advice for the various Funds and are paid by the Investment Adviser based on the average daily net assets of the respective Funds. The sub-adviser of each of the Funds is as follows (*denotes a related party adviser):
Fund | Sub Adviser | |
Global Equity Dividend Fund | ING Investment Management Advisors B.V* | |
Emerging Countries | ING Investment Management Advisors B.V* | |
Index Plus International Equity | ING Investment Management Advisors B.V* | |
Russia | ING Investment Management Advisors B.V* | |
Asia-Pacific Real Estate | ING Clarion Real Estate Securities L.P.* | |
European Real Estate | ING Clarion Real Estate Securities L.P.* | |
Global Real Estate | ING Clarion Real Estate Securities L.P.* | |
International Real Estate | ING Clarion Real Estate Securities L.P.* | |
Global Value Choice | Tradewinds Global Investors, LLC | |
International Value Choice | Tradewinds Global Investors, LLC | |
International Value | Brandes Investment Partners, L.P. and ING Investment Management Co.* | |
Foreign | Artio Global Investment Management LLC | |
Global Natural Resources | ING Investment Management Co.* | |
Global Bond | ING Investment Management Co.* | |
International SmallCap Multi-Manager | Acadian Asset Management LLC, Batterymarch Financial Management, Inc and Schroder Investment Management North America, Inc. | |
Greater China | ING Investment Management Asia/Pacific (Hong Kong) Limited* | |
International Capital Appreciation | Hansberger Global Investors, Inc. |
For Diversified International, ING Investment Management Co. (the “Consultant” or “ING IM”) is a
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
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 year ended October 31, 2009, the following funds waived such management fees which are not subject to recoupment:
Global Natural Resources | $ | 809 | ||
Global Real Estate | 22,738 | |||
Global Value Choice | 9,360 | |||
Asia-Pacific Real Estate | 46 | |||
European Real Estate | 60 | |||
Foreign | 6,482 | |||
International Real Estate | 6,083 | |||
International SmallCap Multi-Manager | 973 | |||
International Value | 21,332 | |||
International Value Choice | 1,120 | |||
Global Bond | 10,493 |
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 a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services.
On October 19, 2008, ING Groep announced that it reached an agreement with the Dutch government to strengthen its capital position. ING Groep issued non-voting core Tier-1 securities for a total consideration of EUR 10 billion to the Dutch State. The transaction boosted ING Bank’s core Tier-1 ratio, strengthened the insurance balance sheet and reduced ING Groep’s Debt/Equity ratio.
On October 26, 2009, ING Groep announced that it will move towards a complete separation of its banking and insurance operations. A formal restructuring plan (“Restructuring Plan”) was submitted to the European Commission (“EC”), which approved it on November 18, 2009. ING Groep expects that the Restructuring Plan will be achieved over the next four years by a divestment of all insurance operations (including ING Investment Management) as well as a divestment of ING Direct US by the end of 2013. ING Groep has represented that it will explore all options, including initial public offerings, sales or combinations thereof. ING Groep has also announced its intention to repurchase EUR 5 billion of Core Tier 1 securities in the fourth quarter of 2009, financed by a EUR 7.5 billion underwritten rights issue.
NOTE 6 — DISTRIBUTION AND SERVICE FEES
Each share class of the Funds, except Class I and Class W, has adopted a Plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plans”), whereby ING Funds Distributor, LLC (“IFD” or the “Distributor”), an indirect, wholly-owned subsidiary of ING Groep, is reimbursed or compensated (depending on the class of shares) by the Funds for expenses incurred in the distribution of each 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% | 1.00 | % | 1.00 | % | N/A | 0.25 | % | N/A | |||||||||||||||
Asia-Pacific Real Estate | 0.25% | 1.00 | % | 1.00 | % | N/A | N/A | N/A | ||||||||||||||||
Emerging Countries | 0.35% | (1) | 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 | % | 0.25 | % | N/A | N/A |
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 6 — DISTRIBUTION AND SERVICE FEES (continued)
Class A | Class B | Class C | Class O | Class Q | Class R | |||||||||||||||||||
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 | 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 | % | 0.25 | % | 0.25 | % | N/A | ||||||||||||||
International Value | 0.30% | 1.00 | % | 1.00 | %(2) | N/A | 0.25 | %(2) | N/A | |||||||||||||||
International Value Choice | 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 | ||||||||||||||||||
Global Bond | 0.25% | 1.00 | % | 1.00 | % | 0.25 | % | N/A | N/A | |||||||||||||||
Diversified International | 0.25% | 1.00 | % | 1.00 | % | 0.25 | % | N/A | 0.50 | % |
(1) | The Distributor has agreed to waive 0.10% of the Distribution Fee for Class A shares of Emerging Countries for the period from January 1, 2009 through March 1, 2010. |
(2) | The Distributor has voluntarily 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, 2008. |
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 year ended October 31, 2009, the Distributor retained the following amounts in sales charges for the Funds:
Class A | Class C | |||||||
Shares | Shares | |||||||
Initial Sales Charges: | ||||||||
Global Equity Dividend | $ | 14,072 | N/A | |||||
Global Natural Resources | 21,110 | N/A | ||||||
Global Real Estate | 96,977 | N/A | ||||||
Global Value Choice | 42,455 | N/A | ||||||
Asia-Pacific Real Estate | 758 | N/A | ||||||
Emerging Countries | 9,941 | N/A | ||||||
European Real Estate | 1,754 | N/A | ||||||
Foreign | 4,894 | N/A | ||||||
Greater China | 33,596 | N/A | ||||||
Index Plus International Equity | 530 | N/A | ||||||
International Capital Appreciation | 1,284 | N/A | ||||||
International Real Estate | 7,603 | N/A | ||||||
International SmallCap Multi-Manager | 5,147 | N/A | ||||||
International Value | 5,408 | N/A | ||||||
International Value Choice | 6,849 | N/A | ||||||
Russia | 186,595 | N/A | ||||||
Global Bond | 44,188 | N/A | ||||||
Diversified International | 13,007 | N/A | ||||||
Contingent Deferred Sales Charges: | ||||||||
Global Equity Dividend | 2,824 | $ | 1,689 | |||||
Global Natural Resources | 287 | — | ||||||
Global Real Estate | 10,964 | 32,521 | ||||||
Global Value Choice | 305 | 6,177 | ||||||
Asia-Pacific Real Estate | — | 32 | ||||||
Emerging Countries | 1 | 1,021 | ||||||
European Real Estate | 1 | 15 | ||||||
Foreign | 6,964 | 7,860 | ||||||
Greater China | 315 | 3,047 | ||||||
Index Plus International Equity | — | 128 | ||||||
International Capital Appreciation | — | 27 | ||||||
International Real Estate | 4,334 | 3,998 | ||||||
International SmallCap Multi-Manager | 10,930 | 3,332 | ||||||
International Value | 21,682 | 8,704 | ||||||
International Value Choice | — | 1,133 | ||||||
Russia | 111,938 | — | ||||||
Global Bond | 8,043 | 29,890 | ||||||
Diversified International | 267 | 11,042 |
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At October 31, 2009, 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 | ||||||||||||||
Fund | Management Fees | Administrative Fees | Distribution Fees | Total | ||||||||||||
Global Equity Dividend | $ | 104,070 | $ | 12,109 | $ | 60,709 | $ | 176,888 | ||||||||
Global Natural Resources | 77,154 | 8,888 | 22,066 | 108,108 | ||||||||||||
Global Real Estate | 1,043,399 | 144,368 | 343,148 | 1,530,915 | ||||||||||||
Global Value Choice | 132,721 | 14,866 | 82,528 | 230,115 | ||||||||||||
Asia-Pacific Real Estate | 3,828 | 384 | 1,552 | 5,764 | ||||||||||||
Emerging Countries | 154,618 | 12,369 | 38,824 | 205,811 | ||||||||||||
European Real Estate | 5,439 | 544 | 1,421 | 7,404 | ||||||||||||
Foreign | 227,581 | 22,762 | 103,809 | 354,152 | ||||||||||||
Greater China | 58,493 | 4,007 | 15,783 | 78,283 | ||||||||||||
Index Plus International Equity | 53,586 | 9,743 | 14,731 | 78,060 | ||||||||||||
International Capital Appreciation | 85,704 | 9,700 | 19,231 | 114,635 | ||||||||||||
International Real Estate | 440,467 | 47,205 | 50,292 | 537,964 | ||||||||||||
International SmallCap Multi-Manager | 382,589 | 37,382 | 97,288 | 517,259 | ||||||||||||
International Value | 1,505,025 | 150,583 | 470,915 | 2,126,523 | ||||||||||||
International Value Choice | 42,976 | 4,314 | 8,422 | 55,712 | ||||||||||||
Russia | 410,109 | 32,808 | 82,021 | 524,938 | ||||||||||||
Global Bond | 93,383 | 23,428 | 59,657 | 176,468 | ||||||||||||
Diversified International | — | 20,572 | 111,915 | 132,487 |
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (continued)
At October 31, 2009, the following indirect, wholly owned subsidiaries of ING Groep owned the following Funds:
Diversified International — | Emerging Countries (13.29%); Foreign (22.09%); Index Plus International Equity (16.63%); International Capital Appreciation (47.80%); International SmallCap Multi-Manager (6.33%); International Value Choice (45.80%). | |
ING Global Target Payment Fund — | Index Plus International Equity (5.28%). | |
ING Life Insurance and Annuity Company — | Asia-Pacific Real Estate (64.27%); European Real Estate (52.66%); International SmallCap Multi-Manager (8.78%). | |
ING Luxenbourg SA — | International Real Estate (5.75%). | |
ING National Trust — | International Capital Appreciation (9.40%); International Value (8.85%). | |
ING Solution 2015 Portfolio — | Global Bond (11.89%). | |
ING Solution 2025 Portfolio — | Global Bond (17.21%). | |
ING Solution 2035 Portfolio — | Global Bond (9.83%). | |
ING Strategic Allocation Growth Fund — | Index Plus International Equity (10.39%). | |
ING Strategic Allocation Moderate Fund — | Index Plus International Equity (8.37%). | |
Reliance Trust Company — | Emerging Countries (5.52%); International Capital Appreciation (6.23%). |
Control is defined by the 1940 Act as the beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a company. The 1940 Act defines affiliates as companies that are under common control. Therefore, because the Funds have a common owner that owns over 25% of the outstanding securities of the Funds, they may be deemed to be affiliates of each other. Investment activities of these shareholders could have a material impact on the Funds.
The 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 | Paid | ||||
Global Equity Dividend | ING Baring LLC | $ | 2,024 | |||
Global Real Estate | ING Baring LLC | 39,761 | ||||
Asia-Pacific Real Estate | ING Baring LLC | 47 | ||||
Emerging Countries | ING Baring LLC | 14,736 | ||||
Foreign | ING Baring LLC | 51 | ||||
Greater China | ING Baring LLC | 6,929 | ||||
International Real Estate | ING Baring LLC | 23,321 | ||||
International SmallCap Multi-Manager | ING Baring LLC | 1,683 | ||||
International Value Choice | ING Baring LLC | 306 |
NOTE 8 — OTHER ACCRUED EXPENSES AND LIABILITIES
At October 31, 2009, the Funds had the following payables included in Other Accrued Expenses and Liabilities on the Statements of Assets and Liabilities that exceeded 5% of total liabilities:
Fund | Accrued Expenses | Amount | ||||
Global Natural Resources | Transfer Agent | $ | 51,259 | |||
Asia-Pacific Real Estate | Custody | 14,976 | ||||
Professional | 13,106 | |||||
European Real Estate | Custody | 3,883 | ||||
Transfer Agent | 4,368 | |||||
Professional | 3,793 | |||||
Index Plus International Equity | Transfer Agent | 65,540 | ||||
Diversified International | Transfer Agent | 158,284 |
NOTE 9 — EXPENSE LIMITATION AGREEMENTS
The Investment Adviser and/or Distributor have agreed to limit expenses, excluding interest expense, taxes, brokerage commissions and extraordinary expenses
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 9 — EXPENSE LIMITATION AGREEMENTS (continued)
(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 | 1.50 | % | 2.25 | % | 2.25 | % | 1.25 | % | N/A | 1.50 | % | N/A | 1.25 | % | ||||||||||||||||||
Asia-Pacific Real Estate | 1.75 | % | 2.50 | % | 2.50 | % | 1.50 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Emerging Countries(1) | 2.25 | % | 2.90 | % | 2.90 | % | 1.75 | % | 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(2) | 1.95 | % | 2.70 | % | 2.70 | % | 1.60 | % | N/A | 1.85 | % | N/A | 1.45 | % | ||||||||||||||||||
Greater China(3) | 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 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 | % | 1.85 | % | 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 | 1.45 | % | |||||||||||||||||||
Russia | 3.35 | % | N/A | N/A | 3.10 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Global Bond | 0.90 | % | 1.65 | % | 1.65 | % | 0.61 | % | 0.90 | % | N/A | N/A | 0.65 | % | ||||||||||||||||||
Diversified International(4) | 0.50 | % | 1.25 | % | 1.25 | % | 0.25 | % | 0.35 | % | N/A | 0.75 | % | 0.10 | % |
(1) | Effective March 1, 2009, pursuant to a side agreement, ING Investments has lowered the expense limits for Emerging Countries through at least March 1, 2010. The expense limits for Emerging Countries are 2.10%, 2.85%, 2.85% and 2.10% for Class A, B, C and Q shares, respectively. If, after March 1, 2010, 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. |
(2) | Pursuant to a side agreement dated March 1, 2009, ING Investments has lowered the expense limits for Foreign through at least March 1, 2010. The expense limits for 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, 2010, 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. |
(3) | Pursuant to a side agreement dated March 1, 2009, 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, 2010. Pursuant to a side agreement dated May 30, 2008, the expense limit for Class O shares is 2.10% through March 1, 2010. There is no guarantee that these side agreements will continue after that date. These side agreements will only renew if ING Investments elects to renew them. Any fees waived pursuant to the side agreement shall not be eligible for recoupment. |
(4) | 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 operating expense limits for Class O and Class W of Diversified International will increase to 0.50% and 0.25%, respectively, at the fund level, effective March 1, 2010. Effective March 1, 2009, the expense limits for Class A, B, C and R were revised from 0.35%, 1.10%, 1.10%, 0.25% and 0.60%, respectively to limits set forth in the table above. |
The Investment Adviser may at a later date recoup from a Fund management and/or class specific fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, a Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations for each Fund. Amounts payable by the Investment Adviser are reflected on the accompanying Statements of Assets and Liabilities for each Fund.
As of October 31, 2009, 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:
2010 | 2011 | 2012 | Total | |||||||||||||
Global Equity Dividend | $ | — | $ | 46,818 | $ | 172,058 | $ | 218,876 | ||||||||
Asia-Pacific Real Estate | — | 142,848 | 116,219 | 259,067 | ||||||||||||
European Real Estate | — | 138,620 | 70,562 | 209,182 | ||||||||||||
Greater China | — | — | 60,086 | 60,086 | ||||||||||||
Index Plus International Equity | — | 936,939 | 22,838 | 959,777 | ||||||||||||
International Capital Appreciation | — | — | 25,287 | 25,287 | ||||||||||||
Global Bond | 148,408 | 86,497 | 272,426 | 507,331 | ||||||||||||
Diversified International | 1,428,892 | 1,337,950 | 786,289 | 3,553,131 |
As of October 31, 2009, the amount of class specific fees waived or reimbursed that are subject to possible recoupment by the Investment Adviser, and the related expiration dates, are as follows:
2010 | 2011 | 2012 | Total | |||||||||||||
Foreign | ||||||||||||||||
Class A | $ | — | $ | — | $ | 60,601 | $ | 60,601 | ||||||||
Class B | — | — | 8,618 | 8,618 | ||||||||||||
Class C | — | — | 47,861 | 47,861 | ||||||||||||
Index Plus International Equity | ||||||||||||||||
Class A | $ | — | $ | — | $ | 30,515 | $ | 30,515 | ||||||||
Class B | — | — | 4,392 | 4,392 | ||||||||||||
Class C | — | — | 4,534 | 4,534 | ||||||||||||
Class O | — | — | 146,637 | 146,637 | ||||||||||||
International Real Estate | ||||||||||||||||
Class A | $ | — | $ | — | $ | 158,438 | $ | 158,438 | ||||||||
Class B | — | — | 6,996 | 6,996 | ||||||||||||
Class C | — | — | 51,655 | 51,655 | ||||||||||||
International Value Choice | ||||||||||||||||
Class A | $ | — | $ | — | $ | 13,778 | $ | 13,778 | ||||||||
Class B | — | — | 2,169 | 2,169 | ||||||||||||
Class C | — | — | 3,921 | 3,921 |
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 9 — EXPENSE LIMITATION AGREEMENTS (continued)
2010 | 2011 | 2012 | Total | |||||||||||||
Diversified International | ||||||||||||||||
Class A | $ | — | $ | — | $ | 39,041 | $ | 39,041 | ||||||||
Class B | — | — | 5,755 | 5,755 | ||||||||||||
Class C | — | — | 21,656 | 21,656 | ||||||||||||
Class O | — | — | 1,830 | 1,830 | ||||||||||||
Class R | — | — | 54 | 54 | ||||||||||||
Class W | — | — | 2,307 | 2,307 |
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 — WRITTEN OPTIONS
Transactions in written options for Global Bond for the year ended October 31, 2009 were as follows:
USD | CHF | |||||||||||
Notional | Notional | Premium | ||||||||||
Balance at 10/31/08 | — | — | $ | — | ||||||||
Options Written | 20,289,000 | 7,164,109 | 299,757 | |||||||||
Options Terminated in Closing Purchase Transactions | (4,446,000 | ) | — | (40,056 | ) | |||||||
Options Expired | (2,865,000 | ) | — | (40,735 | ) | |||||||
Balance at 10/31/09 | 12,978,000 | 7,164,109 | $ | 218,966 | ||||||||
NOTE 11 — LINE OF CREDIT
All of the Funds included in this report, in addition to certain other funds managed by the Investment Adviser or an affiliate of the investment adviser, have entered into an unsecured committed revolving line of credit agreement (the “Credit Agreement”) with The Bank of New York Mellon (“BNY”) for an aggregate amount of $125,000,000. The proceeds may be used only to: (1) temporarily finance the purchase and sale of securities; or (2) finance the redemption of shares of an investor in the Funds. The Funds to which the line of credit is available paid a commitment fee equal to 0.15% per annum on the daily unused portion of the committed line amount payable quarterly in arrears for the period ended October 31, 2009.
The following Funds utilized the line of credit during the year ended October 31, 2009:
Approximate | ||||||||||||
Approximate | Weighted | |||||||||||
Average | Average | |||||||||||
Daily Balance | Interest Rate | |||||||||||
Days | for Days | for Days | ||||||||||
Fund | Utilized | Utilized | Utilized | |||||||||
Global Equity Dividend | 27 | $ | 3,295,185 | 0.69 | % | |||||||
Global Natural Resources | 13 | 323,846 | 0.75 | % | ||||||||
Global Real Estate | 8 | 1,075,000 | 0.67 | % | ||||||||
Global Value Choice | 11 | 4,755,455 | 1.09 | % | ||||||||
Asia-Pacific Real Estate | 29 | 474,138 | 0.81 | % | ||||||||
Foreign(1) | 34 | 1,124,118 | 0.93 | % | ||||||||
Greater China | 52 | 1,367,308 | 0.63 | % | ||||||||
Index Plus International Equity | 27 | 1,415,556 | 0.79 | % | ||||||||
International Capital Appreciation | 75 | 712,133 | 0.93 | % | ||||||||
International Real Estate | 27 | 3,974,444 | 1.01 | % | ||||||||
International SmallCap Multi-Manager | 197 | 2,874,194 | 0.96 | % | ||||||||
International Value(2) | 162 | 9,186,543 | 1.04 | % | ||||||||
Global Bond | 20 | 1,397,000 | 1.01 | % | ||||||||
Diversified International | 1 | 3,640,000 | 1.09 | % |
(1) | At October 31, 2009, Foreign had an outstanding balance of $180,000. |
(2) | At October 31, 2009, International Value had an outstanding balance of $3,240,000. |
96
Table of Contents
NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 12 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
Proceeds | Net increase | Proceeds | ||||||||||||||||||||||||||||||||||||||||||
from shares | (decrease) in | from shares | Redemption | |||||||||||||||||||||||||||||||||||||||||
Shares | issued in | Reinvestment | Shares | shares | Shares | issued in | Reinvestment | fee | Shares | Net increase | ||||||||||||||||||||||||||||||||||
Year or | sold | merger | of distributions | redeemed | outstanding | sold | merger | of distributions | proceeds | redeemed | (decrease) | |||||||||||||||||||||||||||||||||
period ended | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
Global Equity Dividend | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 910,513 | — | 120,461 | (3,249,618 | ) | (2,218,644 | ) | 7,243,833 | — | 996,853 | — | (26,003,285 | ) | (17,762,599 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,684,371 | — | 898,653 | (6,232,831 | ) | (3,649,807 | ) | 22,771,615 | — | 12,354,667 | — | (80,691,472 | ) | (45,565,190 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 78,456 | — | 30,196 | (825,295 | ) | (716,643 | ) | 634,273 | — | 249,985 | — | (6,553,571 | ) | (5,669,313 | ) | |||||||||||||||||||||||||||||
10-31-08 | 209,008 | — | 285,087 | (1,516,147 | ) | (1,022,052 | ) | 2,887,159 | — | 3,919,259 | — | (19,421,680 | ) | (12,615,262 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 468,872 | — | 55,436 | (2,066,211 | ) | (1,541,903 | ) | 3,852,465 | — | 458,079 | — | (16,369,585 | ) | (12,059,041 | ) | |||||||||||||||||||||||||||||
10-31-08 | 939,460 | — | 532,700 | (3,351,816 | ) | (1,879,656 | ) | 12,444,478 | — | 7,312,315 | — | (42,088,864 | ) | (22,332,071 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 97,132 | — | 5,729 | (46,693 | ) | 56,168 | 767,296 | — | 47,693 | — | (375,732 | ) | 439,257 | |||||||||||||||||||||||||||||||
10-31-08 | 138,648 | — | 1,647 | (2,887 | ) | 137,408 | 1,611,488 | — | 17,934 | — | (27,782 | ) | 1,601,640 | |||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 276,310 | — | 2,762 | (369,666 | ) | (90,594 | ) | 2,213,745 | — | 22,787 | — | (2,950,118 | ) | (713,586 | ) | |||||||||||||||||||||||||||||
10-31-08 | 782,090 | — | 191,680 | (706,072 | ) | 267,698 | 10,540,572 | — | 2,607,486 | — | (9,001,556 | ) | 4,146,502 | |||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,239,182 | — | 23,282 | (189,981 | ) | 2,072,483 | 19,974,951 | — | 218,131 | — | (1,849,607 | ) | 18,343,475 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 7,672 | — | 89 | (418 | ) | 7,343 | 100,945 | — | 1,106 | — | (4,290 | ) | 97,761 | |||||||||||||||||||||||||||||||
Global Natural Resources | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,470,178 | — | 787,696 | (1,932,899 | ) | 324,975 | 9,701,353 | — | 4,962,490 | — | (12,571,476 | ) | 2,092,367 | |||||||||||||||||||||||||||||||
10-31-08 | 1,790,153 | — | 2,336,443 | (2,810,465 | ) | 1,316,131 | 20,032,450 | — | 25,092,175 | — | (29,521,523 | ) | 15,603,102 | |||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 73,310 | — | 1,015 | (9,277 | ) | 65,048 | 461,755 | — | 6,371 | — | (60,312 | ) | 407,814 | |||||||||||||||||||||||||||||||
10-31-08 | 7 | — | 20 | (83 | ) | (56 | ) | 100 | — | 209 | — | (913 | ) | (604 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 18,740 | — | 204 | (3,315 | ) | 15,629 | 167,106 | — | 1,612 | — | (32,689 | ) | 136,029 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 4,103 | — | (1 | ) | (840 | ) | 3,262 | 49,821 | — | (14 | ) | — | (9,597 | ) | 40,210 | |||||||||||||||||||||||||||||
Global Real Estate | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 35,273,811 | — | 1,466,408 | (40,636,758 | ) | (3,896,539 | ) | 408,890,679 | — | 16,720,591 | — | (432,634,570 | ) | (7,023,300 | ) | |||||||||||||||||||||||||||||
10-31-08 | 51,167,781 | — | 1,640,309 | (32,356,404 | ) | 20,451,686 | 937,189,621 | — | 31,783,397 | — | (577,604,547 | ) | 391,368,471 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 166,384 | — | 49,738 | (587,295 | ) | (371,173 | ) | 1,702,193 | — | 473,970 | — | (5,308,965 | ) | (3,132,802 | ) | |||||||||||||||||||||||||||||
10-31-08 | 352,926 | — | 77,469 | (1,008,421 | ) | (578,026 | ) | 5,817,538 | — | 1,303,042 | — | (15,872,425 | ) | (8,751,845 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,985,466 | — | 254,710 | (5,057,405 | ) | (1,817,229 | ) | 32,724,474 | — | 2,561,518 | — | (49,038,114 | ) | (13,752,122 | ) | |||||||||||||||||||||||||||||
10-31-08 | 5,702,611 | — | 352,125 | (6,377,998 | ) | (323,262 | ) | 98,932,052 | — | 6,199,754 | — | (104,028,388 | ) | 1,103,418 | ||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 26,525,227 | — | 902,861 | (13,297,323 | ) | 14,130,765 | 309,867,495 | — | 10,316,518 | — | (154,903,172 | ) | 165,280,841 | |||||||||||||||||||||||||||||||
10-31-08 | 17,361,717 | — | 287,474 | (2,851,439 | ) | 14,797,752 | 322,700,380 | — | 5,302,392 | — | (47,800,551 | ) | 280,202,221 | |||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 165,069 | — | 1,903 | (231,028 | ) | (64,056 | ) | 1,869,772 | — | 21,409 | — | (2,599,886 | ) | (708,705 | ) | |||||||||||||||||||||||||||||
10-31-08 | 353,337 | — | 38,884 | (456,536 | ) | (64,315 | ) | 6,903,345 | — | 762,024 | — | (8,610,674 | ) | (945,305 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10,717,462 | — | 273,573 | (4,367,066 | ) | 6,623,969 | 115,194,535 | — | 3,106,650 | — | (50,267,972 | ) | 68,033,213 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 4,363,284 | — | 36,962 | (411,336 | ) | 3,988,910 | 81,150,156 | — | 636,668 | — | (6,448,716 | ) | 75,338,108 | |||||||||||||||||||||||||||||||
Global Value Choice | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6,538,227 | — | — | (4,714,108 | ) | 1,824,119 | 132,608,998 | — | — | — | (98,627,829 | ) | 33,981,169 | |||||||||||||||||||||||||||||||
10-31-08 | 1,396,794 | — | 7,665 | (1,196,047 | ) | 208,412 | 34,725,305 | — | 197,906 | — | (27,864,080 | ) | 7,059,131 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 97,118 | — | — | (214,707 | ) | (117,589 | ) | 2,359,749 | — | — | — | (4,388,375 | ) | (2,028,626 | ) | |||||||||||||||||||||||||||||
10-31-08 | 108,879 | — | — | (458,496 | ) | (349,617 | ) | 2,970,432 | — | — | — | (12,293,459 | ) | (9,323,027 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 964,841 | — | — | (331,636 | ) | 633,205 | 20,983,932 | — | — | — | (6,137,973 | ) | 14,845,959 | |||||||||||||||||||||||||||||||
10-31-08 | 271,913 | — | 565 | (418,092 | ) | (145,614 | ) | 6,485,007 | — | 14,032 | — | (9,480,420 | ) | (2,981,381 | ) |
97
Table of Contents
NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 12 — CAPITAL SHARES (continued)
Net increase | ||||||||||||||||||||||||||||||||||||||||||||
Payments by | (decrease) in | Payments by | Redemption | |||||||||||||||||||||||||||||||||||||||||
Shares | affiliate | Reinvestment | Shares | shares | Shares | affiliate | Reinvestment | fee | Shares | Net increase | ||||||||||||||||||||||||||||||||||
Year or | sold | (Note 18) | of distributions | redeemed | outstanding | sold | (Note 18) | of distributions | proceeds | redeemed | (decrease) | |||||||||||||||||||||||||||||||||
period ended | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
Global Value Choice (continued) | ||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 216,033 | — | — | (165,913 | ) | 50,120 | 4,623,100 | — | — | — | (3,400,709 | ) | 1,222,391 | |||||||||||||||||||||||||||||||
10-31-08 | 164,533 | — | 3,007 | (99,756 | ) | 67,784 | 4,158,310 | — | 77,786 | — | (2,306,604 | ) | 1,929,492 | |||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 137,594 | — | — | (120,545 | ) | 17,049 | 3,299,839 | — | — | — | (3,102,099 | ) | 197,740 | |||||||||||||||||||||||||||||||
10-31-08 | 17,033 | — | 511 | (29,161 | ) | (11,617 | ) | 484,802 | — | 15,493 | — | (816,263 | ) | (315,968 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
06-01-09(1)-10-31-09 | 10,629 | — | — | (1,190 | ) | 9,439 | 292,141 | — | — | — | (32,898 | ) | 259,243 | |||||||||||||||||||||||||||||||
Asia-Pacific Real Estate | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 70,910 | — | 1,315 | (159,906 | ) | (87,681 | ) | 396,983 | — | 6,056 | — | (668,134 | ) | (265,095 | ) | |||||||||||||||||||||||||||||
10-31-08 | 780,760 | — | 980 | (84,459 | ) | 697,281 | 6,996,175 | — | 6,748 | — | (456,097 | ) | 6,546,826 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 647 | — | 77 | (9 | ) | 715 | 3,076 | — | 348 | — | (54 | ) | 3,370 | |||||||||||||||||||||||||||||||
10-31-08 | 4,402 | — | 26 | (382 | ) | 4,046 | 35,352 | — | 201 | — | (3,153 | ) | 32,400 | |||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 114,637 | — | 237 | (736,123 | ) | (621,249 | ) | 593,919 | — | 1,091 | — | (3,103,015 | ) | (2,508,005 | ) | |||||||||||||||||||||||||||||
10-31-08 | 974,716 | — | 110 | (189,935 | ) | 784,891 | 6,392,882 | — | 803 | — | (834,587 | ) | 5,559,098 | |||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | — | — | — | (1 | ) | (1 | ) | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||||||||||||
10-31-08 | 102 | — | — | (1 | ) | 101 | 1,020 | — | — | — | (10 | ) | 1,010 | |||||||||||||||||||||||||||||||
Emerging Countries | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 511,157 | — | 94,935 | (1,077,430 | ) | (471,338 | ) | 10,120,722 | 787,440 | 1,498,911 | — | (18,239,250 | ) | (5,832,177 | ) | |||||||||||||||||||||||||||||
10-31-08 | 822,906 | — | 176,088 | (2,002,850 | ) | (1,003,856 | ) | 28,711,056 | — | 6,292,464 | — | (63,446,626 | ) | (28,443,106 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 28,193 | — | 2,330 | (92,590 | ) | (62,067 | ) | 568,063 | 52,639 | 36,664 | — | (1,546,719 | ) | (889,353 | ) | |||||||||||||||||||||||||||||
10-31-08 | 48,419 | — | 12,124 | (195,755 | ) | (135,212 | ) | 1,665,983 | — | 427,641 | — | (5,956,437 | ) | (3,862,813 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 118,019 | — | 10,848 | (346,829 | ) | (217,962 | ) | 2,032,627 | 189,173 | 160,382 | — | (5,702,039 | ) | (3,319,857 | ) | |||||||||||||||||||||||||||||
10-31-08 | 173,763 | — | 40,672 | (631,418 | ) | (416,983 | ) | 5,571,813 | — | 1,351,224 | — | (17,685,013 | ) | (10,761,976 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 717,479 | — | 46,082 | (607,296 | ) | 156,265 | 12,379,748 | 295,440 | 725,836 | — | (10,528,832 | ) | 2,872,192 | |||||||||||||||||||||||||||||||
10-31-08 | 1,116,587 | — | 48,781 | (1,019,536 | ) | 145,832 | 36,867,641 | — | 1,745,240 | — | (33,127,020 | ) | 5,485,861 | |||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 239,986 | — | 8,656 | (240,918 | ) | 7,724 | 4,724,590 | 75,204 | 141,928 | — | (4,437,488 | ) | 504,234 | |||||||||||||||||||||||||||||||
10-31-08 | 108,895 | — | 20,139 | (316,696 | ) | (187,662 | ) | 3,902,063 | — | 745,231 | — | (10,326,260 | ) | (5,678,966 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 3,260 | — | 56 | (1,682 | ) | 1,634 | 68,462 | 384 | 928 | — | (29,160 | ) | 40,614 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 4,607 | — | 1 | (2,479 | ) | 2,129 | 162,983 | — | 11 | — | (78,082 | ) | 84,912 | |||||||||||||||||||||||||||||||
European Real Estate | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 380,060 | — | 5,024 | (42,539 | ) | 342,545 | 2,499,959 | — | 24,404 | — | (231,184 | ) | 2,293,179 | |||||||||||||||||||||||||||||||
10-31-08 | 693,672 | — | 1,632 | (103,326 | ) | 591,978 | 6,733,767 | — | 13,407 | — | (796,654 | ) | 5,950,520 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,865 | — | 123 | (548 | ) | 2,440 | 13,462 | — | 586 | — | (2,806 | ) | 11,242 | |||||||||||||||||||||||||||||||
10-31-08 | 3,076 | — | 24 | (1,157 | ) | 1,943 | 28,991 | — | 196 | — | (9,393 | ) | 19,794 | |||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,342 | — | 420 | (1,047 | ) | 715 | 8,521 | — | 2,002 | — | (6,484 | ) | 4,039 | |||||||||||||||||||||||||||||||
10-31-08 | 19,205 | — | 66 | (10,195 | ) | 9,076 | 181,711 | — | 545 | — | (89,452 | ) | 92,804 | |||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | — | — | — | (1 | ) | (1 | ) | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||||||||||||
10-31-08 | 102 | — | — | (1 | ) | 101 | 1,020 | — | — | — | (10 | ) | 1,010 | |||||||||||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,371,631 | — | 284,304 | (7,301,637 | ) | (5,645,702 | ) | 15,185,123 | — | 3,268,720 | — | (78,630,589 | ) | (60,176,746 | ) | |||||||||||||||||||||||||||||
10-31-08 | 4,911,276 | — | 689,975 | (7,518,393 | ) | (1,917,142 | ) | 94,565,312 | — | 14,109,997 | — | (128,973,992 | ) | (20,298,683 | ) |
98
Table of Contents
NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 12 — CAPITAL SHARES (continued)
Proceeds | Net increase | Proceeds | ||||||||||||||||||||||||||||||||||||||||||
from shares | (decrease) in | Payments by | from shares | |||||||||||||||||||||||||||||||||||||||||
Shares | issued in | Reinvestment | Shares | shares | Shares | affiliate | issued in | Reinvestment | Shares | Net increase | ||||||||||||||||||||||||||||||||||
Year or | sold | merger | of distributions | redeemed | outstanding | sold | (Note 18) | merger | of distributions | redeemed | (decrease) | |||||||||||||||||||||||||||||||||
period ended | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
Foreign (continued) | ||||||||||||||||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 55,680 | — | 30,318 | (630,033 | ) | (544,035 | ) | 594,826 | — | — | 337,982 | (6,541,059 | ) | (5,608,251 | ) | |||||||||||||||||||||||||||||
10-31-08 | 239,123 | — | 113,030 | (876,325 | ) | (524,172 | ) | 4,648,104 | — | — | 2,230,091 | (15,036,348 | ) | (8,158,153 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 627,944 | — | 167,024 | (3,714,605 | ) | (2,919,637 | ) | 6,702,848 | — | — | 1,862,026 | (39,092,373 | ) | (30,527,499 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,811,561 | — | 458,623 | (3,336,522 | ) | (1,066,338 | ) | 33,659,479 | — | — | 9,062,384 | (57,534,479 | ) | (14,812,616 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,039,880 | — | 280,181 | (3,037,898 | ) | (717,837 | ) | 22,812,939 | — | — | 3,268,812 | (32,771,577 | ) | (6,689,826 | ) | |||||||||||||||||||||||||||||
10-31-08 | 2,258,533 | — | 317,295 | (1,415,836 | ) | 1,159,992 | 44,056,759 | — | — | 6,602,918 | (22,601,262 | ) | 28,058,415 | |||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | — | — | 57 | (3,945 | ) | (3,888 | ) | — | — | — | 675 | (41,702 | ) | (41,027 | ) | |||||||||||||||||||||||||||||
10-31-08 | — | — | 2,445 | (33,010 | ) | (30,565 | ) | — | — | — | 50,214 | (440,821 | ) | (390,607 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 31,220 | — | 1,029 | (15,049 | ) | 17,200 | 373,143 | — | — | 12,878 | (181,480 | ) | 204,541 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 42,471 | — | — | (19,175 | ) | 23,296 | 878,887 | — | — | — | (309,649 | ) | 569,238 | |||||||||||||||||||||||||||||||
Greater China | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,620,136 | — | 123,707 | (1,659,729 | ) | 84,114 | 19,265,434 | — | — | 1,239,574 | (18,938,896 | ) | 1,566,112 | |||||||||||||||||||||||||||||||
10-31-08 | 947,515 | — | 239,370 | (1,990,551 | ) | (803,666 | ) | 16,713,689 | — | — | 4,242,198 | (31,428,443 | ) | (10,472,556 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 80,471 | — | 11,348 | (71,120 | ) | 20,699 | 942,985 | — | — | 113,136 | (788,399 | ) | 267,722 | |||||||||||||||||||||||||||||||
10-31-08 | 92,034 | — | 29,578 | (219,342 | ) | (97,730 | ) | 1,652,070 | — | — | 517,910 | (3,355,264 | ) | (1,185,284 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 303,440 | — | 14,271 | (177,326 | ) | 140,385 | 3,924,773 | — | — | 142,714 | (2,096,269 | ) | 1,971,218 | |||||||||||||||||||||||||||||||
10-31-08 | 173,882 | — | 49,298 | (439,357 | ) | (216,177 | ) | 3,131,398 | — | — | 863,707 | (7,284,343 | ) | (3,289,238 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 74,850 | — | 480 | (31,315 | ) | 44,015 | 1,012,075 | — | — | 4,797 | (448,599 | ) | 568,273 | |||||||||||||||||||||||||||||||
10-31-08 | 1,864 | — | 255 | (31 | ) | 2,088 | 28,250 | — | — | 4,518 | (628 | ) | 32,140 | |||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 270,635 | — | — | (83,831 | ) | 186,804 | 3,346,554 | — | — | — | (1,090,406 | ) | 2,256,148 | |||||||||||||||||||||||||||||||
06-04-08(1)-10-31-08 | 29,666 | — | — | (7,455 | ) | 22,211 | 389,817 | — | — | — | (95,367 | ) | 294,450 | |||||||||||||||||||||||||||||||
Index Plus International Equity | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 101,065 | — | 50,580 | (508,408 | ) | (356,763 | ) | 656,750 | 42,188 | — | 316,123 | (3,249,309 | ) | (2,234,248 | ) | |||||||||||||||||||||||||||||
10-31-08 | 127,395 | 2,083,276 | 15,616 | (898,337 | ) | 1,327,950 | 1,262,851 | — | 24,809,468 | 183,797 | (9,088,911 | ) | 17,167,205 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 13,926 | — | 3,810 | (110,968 | ) | (93,232 | ) | 86,071 | 5,630 | — | 23,930 | (680,898 | ) | (565,267 | ) | |||||||||||||||||||||||||||||
10-31-08 | 12,177 | 355,813 | 6,215 | (177,202 | ) | 197,003 | 132,214 | — | 4,223,697 | 72,966 | (1,667,340 | ) | 2,761,537 | |||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 26,669 | — | 3,268 | (52,196 | ) | (22,259 | ) | 162,592 | 6,257 | — | 20,424 | (310,039 | ) | (120,766 | ) | |||||||||||||||||||||||||||||
10-31-08 | 30,434 | 197,636 | 5,787 | (106,330 | ) | 127,527 | 324,453 | — | 2,343,627 | 67,879 | (1,040,718 | ) | 1,695,241 | |||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,779,458 | — | 437,590 | (4,214,852 | ) | (1,997,804 | ) | 11,549,179 | 239,494 | — | 2,730,559 | (26,438,519 | ) | (11,919,287 | ) | |||||||||||||||||||||||||||||
10-31-08 | 8,828,357 | 523,573 | 1,189,238 | (10,454,928 | ) | 86,240 | 95,723,393 | — | 6,258,727 | 14,056,792 | (102,148,610 | ) | 13,890,302 | |||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 636,241 | — | 33,354 | (1,142,220 | ) | (472,625 | ) | 3,958,056 | 204,241 | — | 206,799 | (7,174,283 | ) | (2,805,187 | ) | |||||||||||||||||||||||||||||
11-09-07(1)-10-31-08 | 1,292,028 | 7,673,371 | 62 | (2,385,102 | ) | 6,580,359 | 13,220,056 | — | 90,795,795 | 730 | (22,842,487 | ) | 81,174,094 | |||||||||||||||||||||||||||||||
International Capital Appreciation | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 102,826 | 2,847,730 | 1,714 | (335,120 | ) | 2,617,150 | 880,999 | — | 24,468,063 | 12,234 | (2,601,438 | ) | 22,759,858 | |||||||||||||||||||||||||||||||
10-31-08 | 96,218 | — | 4,821 | (169,646 | ) | (68,607 | ) | 1,239,482 | — | — | 62,381 | (1,327,786 | ) | (25,923 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 48,165 | 463,335 | 252 | (55,669 | ) | 456,083 | 395,179 | — | 3,950,116 | 2,182 | (424,084 | ) | 3,923,393 | |||||||||||||||||||||||||||||||
10-31-08 | 46,616 | — | 2,138 | (70,820 | ) | (22,066 | ) | 580,009 | — | — | 27,323 | (807,705 | ) | (200,373 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 29,940 | 836,791 | 81 | (49,346 | ) | 817,466 | 253,183 | — | 7,160,428 | 703 | (405,801 | ) | 7,008,513 | |||||||||||||||||||||||||||||||
10-31-08 | 53,113 | — | 1,936 | (67,450 | ) | (12,401 | ) | 645,740 | — | — | 24,821 | (714,775 | ) | (44,214 | ) |
99
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 12 — CAPITAL SHARES (continued)
Proceeds | Net increase | Proceeds | ||||||||||||||||||||||||||||||||||||||||||
from shares | (decrease) in | Payments by | from shares | |||||||||||||||||||||||||||||||||||||||||
Shares | issued in | Reinvestment | Shares | shares | Shares | affiliate | issued in | Reinvestment | Shares | Net increase | ||||||||||||||||||||||||||||||||||
Year or | sold | merger | of distributions | redeemed | outstanding | sold | (Note 18) | merger | of distributions | redeemed | (decrease) | |||||||||||||||||||||||||||||||||
period ended | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
International Capital Appreciation (continued) | ||||||||||||||||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,850,459 | 847,064 | 215,139 | (3,481,989 | ) | (569,327 | ) | 11,581,208 | — | 7,244,473 | 1,505,866 | (23,752,279 | ) | (3,420,732 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,662,796 | — | 515,675 | (4,514,825 | ) | (2,336,354 | ) | 21,649,973 | — | — | 6,677,994 | (49,010,622 | ) | (20,682,655 | ) | |||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||
08-07-09(1)-10-31-09 | 20,196 | 1,352,395 | — | (80,397 | ) | 1,292,194 | 184,872 | — | 11,617,182 | — | (729,208 | ) | 11,072,846 | |||||||||||||||||||||||||||||||
International Real Estate | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 10,856,139 | — | 187,058 | (10,216,094 | ) | 827,103 | 80,995,390 | — | — | 1,251,514 | (68,335,161 | ) | 13,911,743 | |||||||||||||||||||||||||||||||
10-31-08 | 8,574,151 | — | 545,171 | (14,791,771 | ) | (5,672,449 | ) | 100,590,258 | — | — | 6,416,280 | (154,954,852 | ) | (47,948,314 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 32,511 | — | 6,668 | (161,717 | ) | (122,538 | ) | 221,994 | — | — | 44,407 | (1,010,676 | ) | (744,275 | ) | |||||||||||||||||||||||||||||
10-31-08 | 71,839 | — | 23,566 | (329,118 | ) | (233,713 | ) | 857,933 | — | — | 282,366 | (3,544,764 | ) | (2,404,465 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 463,520 | — | 37,943 | (2,688,671 | ) | (2,187,208 | ) | 3,385,481 | — | — | 252,590 | (16,625,935 | ) | (12,987,864 | ) | |||||||||||||||||||||||||||||
10-31-08 | 2,194,498 | — | 169,409 | (5,422,977 | ) | (3,059,070 | ) | 25,813,659 | — | — | 2,032,768 | (56,377,064 | ) | (28,530,637 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 24,743,016 | — | 397,990 | (21,468,261 | ) | 3,672,745 | 157,988,044 | — | — | 2,682,070 | (146,561,555 | ) | 14,108,559 | |||||||||||||||||||||||||||||||
10-31-08 | 43,441,169 | — | 428,870 | (10,642,891 | ) | 33,227,148 | 481,407,853 | — | — | 4,893,801 | (95,017,074 | ) | 391,284,580 | |||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 222,598 | — | 1,804 | (22,663 | ) | 201,739 | 1,729,123 | — | — | 12,716 | (171,266 | ) | 1,570,573 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 52,809 | — | 124 | (8,553 | ) | 44,380 | 568,699 | — | — | 1,157 | (58,832 | ) | 511,024 | |||||||||||||||||||||||||||||||
International SmallCap Multi-Manager | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,348,432 | — | 150,477 | (2,921,857 | ) | (1,422,948 | ) | 33,018,290 | 1,161,532 | — | 3,373,881 | (69,598,429 | ) | (32,044,726 | ) | |||||||||||||||||||||||||||||
10-31-08 | 2,979,636 | — | 998,861 | (4,779,374 | ) | (800,877 | ) | 136,744,112 | — | — | 47,137,719 | (202,990,223 | ) | (19,108,392 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11,148 | — | 2,719 | (266,483 | ) | (252,616 | ) | 291,306 | 68,188 | — | 64,369 | (6,411,677 | ) | (5,987,814 | ) | |||||||||||||||||||||||||||||
10-31-08 | 50,690 | — | 118,804 | (623,581 | ) | (454,087 | ) | 2,540,227 | — | — | 5,829,623 | (28,106,960 | ) | (19,737,110 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 63,914 | — | 20,386 | (405,458 | ) | (321,158 | ) | 1,447,283 | 212,607 | — | 429,751 | (8,998,765 | ) | (6,909,124 | ) | |||||||||||||||||||||||||||||
10-31-08 | 219,882 | — | 221,078 | (703,134 | ) | (262,174 | ) | 9,721,747 | — | — | 9,767,028 | (27,322,204 | ) | (7,833,429 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,715,701 | — | 105,575 | (3,681,362 | ) | (860,086 | ) | 69,313,964 | 923,408 | — | 2,362,922 | (88,778,751 | ) | (16,178,457 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,741,676 | — | 627,880 | (1,922,882 | ) | 446,674 | 77,860,724 | — | — | 29,679,191 | (82,207,122 | ) | 25,332,793 | |||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 24,136 | — | — | (8,794 | ) | 15,342 | 607,858 | 1,900 | — | — | (242,535 | ) | 367,223 | |||||||||||||||||||||||||||||||
06-04-08(1)-10-31-08 | 4,615 | — | — | (1,899 | ) | 2,716 | 150,303 | — | — | — | (54,844 | ) | 95,459 | |||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 181,108 | — | 42,371 | (1,079,348 | ) | (855,869 | ) | 4,856,128 | 221,207 | — | 1,035,594 | (25,746,978 | ) | (19,634,049 | ) | |||||||||||||||||||||||||||||
10-31-08 | 441,947 | — | 273,392 | (796,120 | ) | (80,781 | ) | 21,564,716 | — | — | 14,027,428 | (36,553,425 | ) | (961,281 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 126,076 | — | 13,008 | (200,286 | ) | (61,202 | ) | 3,561,630 | 73,078 | — | 343,560 | (5,206,493 | ) | (1,228,225 | ) | |||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 424,319 | — | 2 | (38,041 | ) | 386,280 | 19,393,949 | — | — | 126 | (1,389,064 | ) | 18,005,011 | |||||||||||||||||||||||||||||||
International Value | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 16,601,423 | — | 13,240,763 | (49,286,953 | ) | (19,444,767 | ) | 155,743,430 | 417,878 | — | 125,310,400 | (456,666,236 | ) | (175,194,528 | ) | |||||||||||||||||||||||||||||
10-31-08 | 15,008,226 | — | 13,738,713 | (37,372,970 | ) | (8,626,031 | ) | 263,356,450 | — | — | 253,006,563 | (604,941,068 | ) | (88,578,055 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 136,224 | — | 1,111,861 | (5,749,201 | ) | (4,501,116 | ) | 1,262,493 | 28,612 | — | 10,444,144 | (53,332,951 | ) | (41,597,702 | ) | |||||||||||||||||||||||||||||
10-31-08 | 413,342 | — | 1,777,035 | (7,626,050 | ) | (5,435,673 | ) | 7,656,523 | — | — | 32,199,846 | (129,928,893 | ) | (90,072,524 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,782,967 | — | 4,284,938 | (10,863,629 | ) | (4,795,724 | ) | 16,368,193 | 154,097 | — | 39,564,402 | (98,584,395 | ) | (42,497,703 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,347,145 | — | 4,567,631 | (9,292,377 | ) | (3,377,601 | ) | 24,318,686 | — | — | 81,988,970 | (144,620,438 | ) | (38,312,782 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 21,932,485 | — | 8,057,767 | (42,131,776 | ) | (12,141,524 | ) | 208,458,026 | 345,180 | — | 75,935,416 | (403,753,973 | ) | (119,015,351 | ) | |||||||||||||||||||||||||||||
10-31-08 | 21,346,501 | — | 12,048,408 | (61,196,377 | ) | (27,801,468 | ) | 374,519,708 | — | — | 221,811,196 | (1,025,849,999 | ) | (429,519,095 | ) |
100
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 12 — CAPITAL SHARES (continued)
Net increase | ||||||||||||||||||||||||||||||||||||||||||||
Payments by | (decrease) in | Payments by | Redemption | |||||||||||||||||||||||||||||||||||||||||
Shares | affiliate | Reinvestment | Shares | shares | Shares | affiliate | Reinvestment | fee | Shares | Net increase | ||||||||||||||||||||||||||||||||||
Year or | sold | (Note 18) | of distributions | redeemed | outstanding | sold | (Note 18) | of distributions | proceeds | redeemed | (decrease) | |||||||||||||||||||||||||||||||||
period ended | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
International Value (continued) | ||||||||||||||||||||||||||||||||||||||||||||
Class Q | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,206,557 | — | 178,994 | (373,051 | ) | 1,012,500 | 11,058,551 | 9,674 | 1,690,451 | — | (3,285,427 | ) | 9,473,249 | |||||||||||||||||||||||||||||||
10-31-08 | 80,922 | — | 168,251 | (258,323 | ) | (9,150 | ) | 1,352,835 | — | 3,102,544 | — | (4,062,976 | ) | 392,403 | ||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
07-20-09(1)-10-31-09 | 288 | — | — | — | 288 | 3,000 | — | — | — | — | 3,000 | |||||||||||||||||||||||||||||||||
International Value Choice | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 844,928 | — | 9,558 | (424,179 | ) | 430,307 | 7,718,059 | — | 78,920 | — | (3,560,528 | ) | 4,236,451 | |||||||||||||||||||||||||||||||
10-31-08 | 686,849 | — | 176,805 | (795,921 | ) | 67,733 | 7,157,841 | — | 2,075,696 | — | (7,750,036 | ) | 1,483,501 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 37,433 | — | 40 | (83,839 | ) | (46,366 | ) | 312,771 | — | 332 | — | (679,570 | ) | (366,467 | ) | |||||||||||||||||||||||||||||
10-31-08 | 42,499 | — | 29,707 | (97,833 | ) | (25,627 | ) | 499,053 | — | 345,496 | — | (1,061,670 | ) | (217,121 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 240,962 | — | 67 | (117,188 | ) | 123,841 | 2,061,616 | — | 557 | — | (940,153 | ) | 1,122,020 | |||||||||||||||||||||||||||||||
10-31-08 | 63,426 | — | 39,133 | (133,854 | ) | (31,295 | ) | 741,122 | — | 456,287 | — | (1,515,447 | ) | (318,038 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 496,035 | — | 64,604 | (2,471,198 | ) | (1,910,559 | ) | 4,189,609 | — | 532,021 | — | (19,412,031 | ) | (14,690,401 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,789,120 | — | 775,006 | (1,843,757 | ) | 720,369 | 21,092,150 | — | 9,083,070 | — | (19,635,694 | ) | 10,539,526 | |||||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
06-01-09(1)-10-31-09 | 327 | — | — | — | 327 | 3,000 | — | — | — | — | 3,000 | |||||||||||||||||||||||||||||||||
Russia | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 3,136,367 | — | 3,839,001 | (4,536,852 | ) | 2,438,516 | 64,169,973 | — | 71,291,248 | 262,776 | (78,843,963 | ) | 56,880,034 | |||||||||||||||||||||||||||||||
10-31-08 | 3,508,454 | — | 1,701,980 | (6,816,631 | ) | (1,606,197 | ) | 221,879,155 | — | 116,874,956 | 1,344,090 | (348,756,344 | ) | (8,658,143 | ) | |||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
09-30-09(1)-10-31-09 | 106 | — | — | — | 106 | 3,000 | — | — | — | — | 3,000 | |||||||||||||||||||||||||||||||||
Global Bond | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 6,373,003 | — | 163,753 | (5,903,951 | ) | 632,805 | 74,265,421 | — | 1,865,656 | — | (65,323,554 | ) | 10,807,523 | |||||||||||||||||||||||||||||||
10-31-08 | 7,456,121 | — | 137,999 | (2,528,202 | ) | 5,065,918 | 80,606,536 | — | 1,503,470 | — | (26,720,683 | ) | 55,389,323 | |||||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 174,593 | — | 9,908 | (164,067 | ) | 20,434 | 1,952,301 | — | 111,648 | — | (1,817,097 | ) | 246,852 | |||||||||||||||||||||||||||||||
10-31-08 | 482,365 | — | 7,800 | (120,595 | ) | 369,570 | 5,209,000 | — | 84,783 | — | (1,265,336 | ) | 4,028,447 | |||||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,199,636 | — | 72,957 | (1,364,310 | ) | 908,283 | 25,493,127 | — | 823,517 | — | (15,196,556 | ) | 11,120,088 | |||||||||||||||||||||||||||||||
10-31-08 | 3,471,699 | — | 50,068 | (831,577 | ) | 2,690,190 | 37,418,779 | — | 547,180 | — | (8,772,866 | ) | 29,193,093 | |||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 11,315,341 | — | 185,482 | (402,479 | ) | 11,098,344 | 123,295,021 | — | 2,192,977 | — | (4,570,432 | ) | 120,917,566 | |||||||||||||||||||||||||||||||
10-31-08 | 146,220 | — | 511 | (97,562 | ) | 49,169 | 1,585,456 | — | 5,482 | — | (1,042,215 | ) | 548,723 | |||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 307,733 | — | 7 | (70,439 | ) | 237,301 | 3,487,641 | — | 79 | — | (797,912 | ) | 2,689,808 | |||||||||||||||||||||||||||||||
06-04-08(1)-10-31-08 | 27,965 | — | 2 | (6,112 | ) | 21,855 | 292,477 | — | 21 | — | (63,489 | ) | 229,009 | |||||||||||||||||||||||||||||||
Class W | �� | |||||||||||||||||||||||||||||||||||||||||||
06-01-09(1)-10-31-09 | 130,083 | — | 372 | (3,321 | ) | 127,134 | 1,559,868 | — | 4,415 | — | (39,978 | ) | 1,524,305 | |||||||||||||||||||||||||||||||
Diversified International | ||||||||||||||||||||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 2,533,302 | — | 1,998,138 | (11,750,100 | ) | (7,218,660 | ) | 17,593,370 | — | 13,047,285 | — | (78,261,758 | ) | (47,621,103 | ) | |||||||||||||||||||||||||||||
10-31-08 | 8,841,423 | — | 515,063 | (12,019,529 | ) | (2,663,043 | ) | 111,719,950 | — | 6,979,408 | — | (131,771,713 | ) | (13,072,355 | ) | |||||||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 174,017 | — | 252,791 | (797,854 | ) | (371,046 | ) | 1,189,186 | — | 1,650,743 | — | (5,252,991 | ) | (2,413,062 | ) | |||||||||||||||||||||||||||||
10-31-08 | 654,048 | — | 48,497 | (851,393 | ) | (148,848 | ) | 8,251,659 | — | 654,909 | — | (9,548,622 | ) | (642,054 | ) | |||||||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 1,304,646 | — | 901,364 | (4,385,138 | ) | (2,179,128 | ) | 8,889,191 | — | 5,877,016 | — | (29,433,360 | ) | (14,667,153 | ) | |||||||||||||||||||||||||||||
10-31-08 | 3,391,624 | — | 164,842 | (3,992,949 | ) | (436,483 | ) | 42,957,806 | — | 2,222,086 | — | (43,316,760 | ) | 1,863,132 | ||||||||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 773,346 | — | 90,151 | (477,064 | ) | 386,433 | 5,193,236 | — | 585,985 | — | (3,165,096 | ) | 2,614,125 | |||||||||||||||||||||||||||||||
10-31-08 | 7 | — | 57 | (47 | ) | 17 | 100 | — | 766 | — | (640 | ) | 226 |
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 12 — CAPITAL SHARES (continued)
Proceeds | Net increase | Proceeds | ||||||||||||||||||||||||||||||||||||||||||
from shares | (decrease) in | from shares | Redemption | |||||||||||||||||||||||||||||||||||||||||
Shares | issued in | Reinvestment | Shares | shares | Shares | issued in | Reinvestment | fee | Shares | Net increase | ||||||||||||||||||||||||||||||||||
Year or | sold | merger | of distributions | redeemed | outstanding | sold | merger | of distributions | proceeds | redeemed | (decrease) | |||||||||||||||||||||||||||||||||
period ended | # | # | # | # | # | ($) | ($) | ($) | ($) | ($) | ($) | |||||||||||||||||||||||||||||||||
Diversified International (continued) | ||||||||||||||||||||||||||||||||||||||||||||
Class O | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 276,907 | — | — | (64,041 | ) | 212,866 | 1,938,487 | — | — | — | (466,642 | ) | 1,471,845 | |||||||||||||||||||||||||||||||
06-04-08(1)-10-31-08 | 29,313 | — | — | (10,096 | ) | 19,217 | 279,607 | — | — | — | (91,526 | ) | 188,081 | |||||||||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 30 | — | 3,254 | (4,324 | ) | (1,040 | ) | 170 | — | 21,053 | — | (25,429 | ) | (4,206 | ) | |||||||||||||||||||||||||||||
10-31-08 | 1,146 | — | 655 | (5,672 | ) | (3,871 | ) | 14,594 | — | 8,800 | — | (68,665 | ) | (45,271 | ) | |||||||||||||||||||||||||||||
Class W | ||||||||||||||||||||||||||||||||||||||||||||
10-31-09 | 178,713 | — | 16,022 | (92,628 | ) | 102,107 | 1,283,459 | — | 103,822 | — | (615,141 | ) | 772,140 | |||||||||||||||||||||||||||||||
02-12-08(1)-10-31-08 | 294,208 | — | — | (87,719 | ) | 206,489 | 3,322,579 | — | — | — | (772,445 | ) | 2,550,134 |
(1) | Commencement of operations. |
NOTE 13 — ILLIQUID SECURITIES
Pursuant to guidelines adopted by the Funds’ Board, the following securities have been deemed to be illiquid. The Funds currently limit investments in illiquid securities to 15% of a Fund’s net assets, at market value, at time of purchase. Fair value for certain securities was determined by ING Funds Valuation Committee appointed by the Funds’ Board and in accordance with the methods specifically authorized by the Board.
Initial | Percent | |||||||||||||||||||||
Acquisition | of Net | |||||||||||||||||||||
Fund | Security | Shares | Date | Cost | Value | Assets | ||||||||||||||||
Global Real Estate | Safestore Holdings Ltd. | 2,833,565 | 03/09/07 | $ | 11,308,383 | $ | 6,582,675 | 0.4 | % | |||||||||||||
Atrium European Real Estate, Ltd. | 1,234,420 | 08/20/09 | 7,942,395 | 8,067,754 | 0.5 | |||||||||||||||||
$ | 19,250,778 | $ | 14,650,429 | 0.9 | % | |||||||||||||||||
Global Value Choice | Endeavour Financial Corp. | 477,125 | 01/29/09 | $ | 591,685 | $ | 828,977 | 0.5 | % | |||||||||||||
Endeavour Financial Corp. | 336,822 | 01/29/09 | 139,231 | 227,235 | 0.1 | |||||||||||||||||
Westjet Airlines, Ltd. | 113,926 | 09/23/09 | 1,186,950 | 1,151,842 | 0.7 | |||||||||||||||||
$ | 1,917,866 | $ | 2,208,054 | 1.3 | % | |||||||||||||||||
Foreign | Mediobanca S.p.A. | 11,204 | 04/24/09 | $ | 381 | $ | 2,432 | 0.0 | % | |||||||||||||
Rolls-Royce Group PLC — C Shares | 1,307,040 | 09/30/05 | 1,529 | 2,145 | 0.0 | |||||||||||||||||
$ | 1,910 | $ | 4,577 | 0.0 | % | |||||||||||||||||
Index Plus International Equity | Fortis | 5,625 | 10/20/08 | $ | — | $ | — | 0.0 | % | |||||||||||||
International Real Estate | Atrium European Real Estate, Ltd. | 512,070 | 08/20/09 | $ | 3,202,644 | $ | 3,346,716 | 0.6 | % | |||||||||||||
Central Pattana PCL | 1,730,000 | 03/01/06 | 1,135,490 | 1,108,813 | 0.2 | |||||||||||||||||
LXB Retail Properties PLC | 4,875,400 | �� | 10/20/09 | 7,979,509 | 8,181,812 | 1.5 | ||||||||||||||||
Safestore Holdings, Ltd. | 1,324,970 | 03/09/07 | 4,519,903 | 3,078,047 | 0.6 | |||||||||||||||||
Yatra Capital, Ltd. | 90,400 | 11/27/06 | 1,187,365 | 532,148 | 0.1 | |||||||||||||||||
$ | 18,024,911 | $ | 16,247,536 | 3.0 | % | |||||||||||||||||
International SmallCap Multi-Manager | China Resources Gas Group, Ltd. | 740,660 | 04/07/09 | $ | 450,597 | $ | 716,749 | 0.2 | % | |||||||||||||
D Carnegie AB | 27,938 | 11/07/08 | 68,403 | — | 0.0 | |||||||||||||||||
Hawesko Holding AG | 20,000 | 02/29/08 | 534,911 | 559,003 | 0.1 | |||||||||||||||||
Humax Co., Ltd. | 4,575 | 07/22/09 | 62,065 | 49,752 | 0.0 | |||||||||||||||||
Jidosha Buhin Kogyo Co., Ltd. | 51,000 | 03/01/05 | 322,208 | 80,619 | 0.0 | |||||||||||||||||
Newave Energy Holding SA | 10,690 | 03/31/08 | 367,219 | 431,897 | 0.1 | |||||||||||||||||
Programmed Maintenance Services, Ltd. | 10,164 | 10/08/09 | 40,531 | 37,054 | 0.0 | |||||||||||||||||
Rosenbauer International AG | 40,000 | 01/16/08 | 1,344,964 | 1,546,697 | 0.4 | |||||||||||||||||
Tsann Kuen Enterprise Co., Ltd. | 34,000 | 12/19/08 | 14,079 | 28,017 | 0.0 | |||||||||||||||||
$ | 3,147,487 | $ | 3,462,101 | 0.8 | % | |||||||||||||||||
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 13 — ILLIQUID SECURITIES (continued)
Initial | Percent | |||||||||||||||||||||
Acquisition | of Net | |||||||||||||||||||||
Fund | Security | Shares | Date | Cost | Value | Assets | ||||||||||||||||
Russia | Aeroflot — Russian International Airlines | 1,800,000 | 08/28/09 | $ | 1,874,808 | $ | 2,610,000 | 0.7 | % | |||||||||||||
Bank St. Petersburg BRD — Class S | 1,709,000 | 11/02/07 | 8,893,549 | 4,892,365 | 1.3 | |||||||||||||||||
Holding MRSK OAO | 53,769,600 | 07/22/09 | 2,873,519 | 6,282,440 | 1.7 | |||||||||||||||||
OGK-2 OAO | 99,532,300 | 07/22/09 | 1,850,001 | 3,433,864 | 0.9 | |||||||||||||||||
Open Investments | 33,000 | 11/07/07 | 9,071,850 | 1,485,000 | 0.4 | |||||||||||||||||
RBC Information Systems | 1,324,122 | 06/16/04 | 7,874,627 | 1,644,560 | 0.4 | |||||||||||||||||
RenShares Utilities, Ltd. | 636,687 | 08/26/05 | 752,296 | 1,299,101 | 0.3 | |||||||||||||||||
Sibirskiy Cement OAO | 100,000 | 08/28/09 | 1,495,000 | 2,600,000 | 0.7 | |||||||||||||||||
VolgaTelecom | 1,145,400 | 11/11/98 | 2,015,123 | 2,348,070 | 0.6 | |||||||||||||||||
Vsmpo-Avisma Corp. | 32,800 | 04/06/04 | 4,214,442 | 2,230,400 | 0.6 | |||||||||||||||||
$ | 40,915,216 | $ | 28,825,800 | 7.6 | % | |||||||||||||||||
NOTE 14 — REORGANIZATION
On August 8, 2009, International Capital Appreciation, as listed below (“Acquiring Fund”), acquired the assets and certain liabilities of ING International Growth Opportunities Fund, also listed below (“Acquired Fund”), in a tax-free reorganization in exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired Fund’s shareholders. The number and value of shares issued by the Acquiring Fund are presented in Note 12 — Capital Share Transactions. Net assets and unrealized appreciation as of the reorganization date were as follows:
Acquired | ||||||||||||||||||||||
Capital Loss | Acquired Fund | |||||||||||||||||||||
Acquiring | Acquired | Total Net Assets of | Total Net Assets of | Carryforwards | Unrealized | Conversion | ||||||||||||||||
Fund | Fund | Acquired Fund (000’s) | Acquiring Fund (000’s) | (000’s) | Appreciation (000’s) | Ratio | ||||||||||||||||
International Capital Appreciation | ING International Growth Opportunities Fund | $ | 54,440 | $ | 54,174 | $ | 45,649 | $ | 894 | 0.8897 |
The net assets of International Capital Appreciation after the acquisition was $108,614,246.
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 of reorganization approved by the Acquired Fund’s shareholders. The number and value of shares issued by the Acquiring Fund are presented in Note 12 — Capital Share Transactions. Net assets and unrealized appreciation as of the reorganization date were as follows:
Acquired | ||||||||||||||||||||||
Capital Loss | Acquired Fund | |||||||||||||||||||||
Acquiring | Acquired | Total Net Assets of | Total Net Assets of | Carry forwards | Unrealized | Conversion | ||||||||||||||||
Fund | Fund | Acquired Fund (000’s) | Acquiring Fund (000’s) | (000’s) | Appreciation (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 15 — CONCENTRATION OF RISKS
All mutual funds involve risk — some more than others — and there is always the chance that you could lose money or not earn as much as you hope. A Fund’s risk profile is largely a factor of the principal securities in which it invests and investment techniques that it uses. For more information regarding the types of securities and investment techniques that may be used by the Funds and their corresponding risks, see each Fund’s most recent Prospectus and/or the Statement of Additional Information.
Diversified International is also affected by other kinds of risks, depending on the types of securities held or strategies used by an Underlying Fund.
Investment by Funds-of-Funds (Diversified International). Each of the Underlying Funds’ shares may be purchased by other investment companies. In some cases, an Underlying Fund may experience large inflows or redemptions due to allocations or rebalancings. While it is impossible to predict the overall impact of these transactions over time, there could be adverse effects on portfolio management. The Investment
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 15 — CONCENTRATION OF RISKS (continued)
Adviser will monitor transactions by each Underlying Fund and will attempt to minimize any adverse effects on the Underlying Funds and the Fund as a result of these transactions. So long as an Underlying Fund accepts investments by other investment companies, it will not purchase securities of other investment companies, except to the extent permitted by the 1940 Act or under the terms of an exemptive order granted by the SEC.
Foreign Securities (All Funds). Investments in foreign securities may entail risks not present in domestic investments. Since securities in which the Funds and Underlying Funds may invest are denominated in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds and Underlying Funds. Foreign investments may also subject the Funds and Underlying Funds to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, as well as changes vis-a-vis the U.S. dollar from movements in currency, and changes in security value and interest rate, all of which could affect the market and/or credit risk of the Funds’ and Underlying Funds’ investments.
Non-Diversified (Global Natural Resources, Global Real Estate, Asia-Pacific Real Estate, European Real Estate, Greater China, International Real Estate, Russia, Emerging Markets Fixed Income and Global Bond). Certain of the Funds and Underlying Funds are classified as non-diversified investment companies under the 1940 Act, which means that they are not limited by the 1940 Act in the proportion of assets that they may invest in the obligations of a single issuer. Declines in the value of that single company can significantly impact the value of a Fund or Underlying Fund. The investment of a large percentage of a Fund’s or Underlying Fund’s assets in the securities of a small number of issuers may cause a Fund’s share price to fluctuate more than that of a diversified investment company. Conversely, even though classified as non-diversified, a Fund or Underlying Fund may actually maintain a portfolio that is diversified with a large number of issuers. In such an event, a Fund or Underlying Fund would benefit less from appreciation in a single corporate issuer than if it had greater exposure to that issuer.
During the period, Lehman Brothers Holdings, Inc. (LBHI) and certain of its affiliates sought protection under the insolvency laws of their jurisdictions of organization, including the United States, the United Kingdom and Japan. For the year ended October 31, 2009, Global Bond had outstanding securities trades with counterparties affiliated with LBHI. As a result of these events, LBHI’s affiliates were unable to fulfill their commitments and, in certain cases, Global Bond may have terminated its trades and related agreements with the relevant entities and, where appropriate, is in the process of initiating claims for damages. Management has determined that the financial impact to the Funds relating to these events is immaterial.
NOTE 16 — SECURITIES LENDING
Under an agreement with The Bank of New York Mellon (“BNY”), the Funds can lend their securities to approved brokers, dealers and other financial institutions. Loans are collateralized by cash and U.S. government securities. The collateral is equal to at least 105% of the market value of non-U.S. securities loaned and 102% of the market value of U.S. securities loaned. The market value of the loaned securities is determined at the close of business of the Funds at their last sale price or official closing price on the principal exchange or system on which they are traded and any additional collateral is delivered to the Funds on the next business day. The cash collateral received is invested in approved investments as defined in the Securities Lending Agreement with BNY (the “Agreement”). The Funds bear the risk of loss with respect to the investment of collateral. Currently, the cash collateral is invested in the Bank of New York Mellon Corp. Institutional Cash Reserves Fund (“BICR Fund”). BNY serves as investment manager, custodian and operational trustee of the BICR Fund. As of October 31, 2009, the BICR Fund held certain defaulted securities issued by Lehman Brothers Holdings, Inc. (the “Lehman Securities”) in a separate sleeve designated as Series B. The Lehman Securities have market values significantly below amortized cost. On May 22, 2009, the Funds agreed to the terms of a capital support agreement (the “Capital Support Agreement”) extended by The Bank of New York Mellon Corporation (“BNYC”), an affiliated company of BNY, for the Lehman Securities held by the BICR Fund, Series B. Under the terms of the Capital Support Agreement, BNYC will support the value of the Lehman Securities up to 80% of the par value (the remaining 20% of the par value represents an unrealized loss to the Funds) and subject, in part, to the Funds’ continued participation in the BNY securities lending program through September 15,
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 16 — SECURITIES LENDING (continued)
2011. At September 15, 2011, if the Funds have complied with the requirements under the Capital Support Agreement to continue to participate in the BNY securities lending program and if such securities have not otherwise been sold, the Funds will have the right to sell the defaulted securities to BNYC at a price equal to 80% of par value. The recorded value of each Fund’s investment in the BICR Fund includes the value of the underlying securities held by the BICR Fund and the estimated value of the support to be provided by BNYC. The investment in the BICR Fund is included in the Portfolio of Investments under Securities Lending Collateral and the unrealized loss on such investment is included in Net Unrealized Depreciation on the Statements of Assets and Liabilities.
Generally, in the event of counterparty default, the Funds have the right to use the collateral to offset losses incurred. The Agreement contains certain guarantees by BNY in the event of counterparty default and/or a borrower’s failure to return a loaned security; however, there would be a potential loss to the Funds in the event the Funds are delayed or prevented from exercising their right to dispose of the collateral. Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other risks associated with investing in a Fund. At October 31, 2009, the following Funds had securities on loan with the following market values:
Value of | Cash | |||||||
Securities | Collateral | |||||||
Loaned | Received* | |||||||
Global Equity Dividend | $ | 301,908 | $ | 326,900 | ||||
Global Real Estate | 22,514,050 | 24,087,317 | ||||||
Global Value Choice | 3,263,771 | 3,917,772 | ||||||
Emerging Countries | 764,839 | 790,615 | ||||||
Foreign | 229,191 | 252,707 | ||||||
International Capital Appreciation | 3,552,353 | 3,732,764 | ||||||
International SmallCap Multi-Manager | 274,117 | 290,696 | ||||||
International Value | 44,188,883 | 47,687,292 | ||||||
Russia | 11,548,629 | 12,302,448 |
* | Cash collateral received was invested in the BICR Fund, the fair value of which is presented in the respective Funds’ Portfolios of Investments. |
NOTE 17 — FEDERAL INCOME TAXES
The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of short-term capital gains, foreign currency transactions, 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.
The following permanent tax differences have been reclassified as of October 31, 2009:
Undistributed | Accumulated | |||||||||||
Paid-in | Net Investment Income | Net Realized | ||||||||||
Capital | On Investments | Gains/(Losses) | ||||||||||
Global Equity Dividend | $ | (16 | ) | $ | (524,125 | ) | $ | 524,141 | ||||
Global Natural Resources | 8,701 | (31,761 | ) | 23,060 | ||||||||
Global Real Estate(1) | (40,493,671 | ) | 32,620,450 | 7,873,221 | ||||||||
Global Value Choice | (60,707,345 | ) | 572,369 | 60,134,976 | ||||||||
Asia-Pacific Real Estate | — | 332,776 | (332,776 | ) | ||||||||
Emerging Countries | (1,407,862 | ) | (175,683 | ) | 1,583,545 | |||||||
European Real Estate | — | 299,116 | (299,116 | ) | ||||||||
Foreign | (2,666,680 | ) | 13,334,679 | (10,667,999 | ) | |||||||
Greater China | 11,005 | (1,132,305 | ) | 1,121,300 | ||||||||
Index Plus International Equity | (482,785 | ) | (383,321 | ) | 866,106 | |||||||
International Capital Appreciation | (7,538,135 | ) | (58,002 | ) | 7,596,137 | |||||||
International Real Estate | (1,143,635 | ) | 31,268,429 | (30,124,794 | ) | |||||||
International SmallCap Multi-Manager | (2,436,149 | ) | 2,665,815 | (229,666 | ) | |||||||
International Value | (955,441 | ) | 7,598,262 | (6,642,821 | ) | |||||||
International Value Choice | (2,563 | ) | (74,106 | ) | 76,669 | |||||||
Russia | (2,762,160 | ) | 2,451,035 | 311,125 | ||||||||
Global Bond | — | 4,581,931 | (4,581,931 | ) | ||||||||
Diversified International | (35,662 | ) | 35,662 | — |
(1) | As of the Fund’s tax year ended December 31, 2008. Amounts include approximately $25 million of Return of Capital due to passive foreign investment company (PFIC) adjustments. |
105
Table of Contents
NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 17 — FEDERAL INCOME TAXES (continued)
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:
Year Ended October 31, 2009 | Year Ended October 31, 2008 | |||||||||||||||||||||||||||
Dividends Paid | ||||||||||||||||||||||||||||
Ordinary | Long-Term | Return | Ordinary | Long-Term | Return of | Deduction on | ||||||||||||||||||||||
Income | Capital Gains | of Capital | Income | Capital Gains | Capital | Redemptions | ||||||||||||||||||||||
Global Equity Dividend | $ | 3,022,341 | $ | — | $ | 229,828 | $ | 16,829,413 | $ | 20,212,116 | $ | 987,059 | $ | — | ||||||||||||||
Global Natural Resources | 254,842 | 5,303,255 | — | 20,465,025 | 7,709,284 | — | 2,046,138 | |||||||||||||||||||||
Global Real Estate(1) | — | 1,460,326 | 35,042,128 | 63,966,650 | 3,853,410 | — | 4,315,681 | |||||||||||||||||||||
Global Value Choice | — | — | — | 453,191 | — | — | — | |||||||||||||||||||||
Asia-Pacific Real Estate | 77,255 | — | — | 68,616 | — | — | — | |||||||||||||||||||||
Emerging Countries | 2,865,899 | — | — | 3,353,946 | 8,984,526 | — | — | |||||||||||||||||||||
European Real Estate | 184,852 | — | — | 77,180 | — | — | — | |||||||||||||||||||||
Foreign | 11,395,047 | — | — | 4,162,876 | 40,260,324 | — | — | |||||||||||||||||||||
Greater China | 96,917 | 1,915,018 | — | 6,807,369 | 1,427,245 | — | 704,722 | |||||||||||||||||||||
Index Plus International Equity | 4,688,144 | — | — | 11,803,802 | 2,716,188 | — | — | |||||||||||||||||||||
International Capital Appreciation | 1,501,867 | — | 36,098 | 5,739,016 | 1,233,537 | — | — | |||||||||||||||||||||
International Real Estate | 11,137,666 | — | — | 18,504,346 | — | 9,785,496 | — | |||||||||||||||||||||
International SmallCap Multi-Manager | 11,110,977 | — | — | 78,413,094 | 66,294,175 | — | — | |||||||||||||||||||||
International Value | 96,517,633 | 257,239,139 | — | 169,348,535 | 657,984,681 | — | 122,133,081 | |||||||||||||||||||||
International Value Choice | 620,515 | — | — | 4,885,936 | 7,696,698 | — | — | |||||||||||||||||||||
Russia | — | 82,435,965 | — | — | 137,654,710 | — | 54,251,300 | |||||||||||||||||||||
Global Bond | 6,116,254 | — | — | 4,587,274 | — | — | — | |||||||||||||||||||||
Diversified International | 27,653,940 | — | — | 11,317,059 | 1,925,350 | — | — |
(1) | Composition and amounts of dividends and distributions presented herein is based on the Fund’s tax year-ends of December 31, 2008 and December 31, 2007. |
The tax-basis components of distributable earnings and the expiration dates of the capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of October 31, 2009 were:
Undistributed | Unrealized | Post-October | ||||||||||||||||||
Ordinary | Appreciation/ | Capital Loss | Capital Loss | Expiration | ||||||||||||||||
Income | (Depreciation) | Deferred | Carryforwards | Dates | ||||||||||||||||
Global Equity Dividend | $ | — | $ | (2,543,220 | ) | $ | — | $ | (24,895,240 | ) | 2016 | |||||||||
(71,676,150 | ) | 2017 | ||||||||||||||||||
$ | (96,571,390 | ) | ||||||||||||||||||
Global Natural Resources | 94,433 | 3,036,634 | — | (22,589,197 | ) | 2017 | ||||||||||||||
Global Real Estate(1) | — | (604,656,120 | ) | (102,876,037 | ) | (164,232,218 | ) | 2016 | ||||||||||||
Global Value Choice | 1,050,362 | 20,538,634 | — | (81,779,077 | ) | 2010 | ||||||||||||||
(6,183,953 | ) | 2011 | ||||||||||||||||||
(7,949,386 | ) | 2017 | ||||||||||||||||||
$ | (95,912,416 | ) | ||||||||||||||||||
Asia-Pacific Real Estate | 337,822 | (641,115 | ) | — | (1,331,831 | ) | 2016 | |||||||||||||
(3,292,541 | ) | 2017 | ||||||||||||||||||
$ | (4,624,372 | ) | ||||||||||||||||||
Emerging Countries | — | 22,532,186 | — | (53,090,356 | ) | 2016 | ||||||||||||||
(41,200,730 | ) | 2017 | ||||||||||||||||||
$ | (94,291,086 | ) | ||||||||||||||||||
European Real Estate | 288,525 | (489,318 | ) | — | (872,339 | ) | 2016 | |||||||||||||
(797,828 | ) | 2017 | ||||||||||||||||||
$ | (1,670,167 | ) | ||||||||||||||||||
Foreign | — | 35,974,205 | — | (73,349,517 | ) | 2016 | ||||||||||||||
(80,200,325 | ) | 2017 | ||||||||||||||||||
$ | (153,549,842 | ) | ||||||||||||||||||
Greater China | 675,252 | 5,289,449 | — | (5,201,600 | ) | 2017 |
106
Table of Contents
NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 17 — FEDERAL INCOME TAXES (continued)
Undistributed | Unrealized | Post-October | ||||||||||||||||||
Ordinary | Appreciation/ | Capital Loss | Capital Loss | Expiration | ||||||||||||||||
Income | (Depreciation) | Deferred | Carryforwards | Dates | ||||||||||||||||
Index Plus International Equity | $ | 1,980,510 | $ | 1,437,554 | $ | — | $ | (37,732,800 | ) | 2016 | ||||||||||
(46,665,971 | ) | 2017 | ||||||||||||||||||
$ | (84,398,771 | ) | ||||||||||||||||||
International Capital Appreciation | — | 3,455,941 | — | (4,921,856 | ) | 2015 | ||||||||||||||
(46,983,912 | ) | 2016 | ||||||||||||||||||
(14,842,759 | ) | 2017 | ||||||||||||||||||
$ | (66,748,527 | )* | ||||||||||||||||||
International Real Estate | 31,510,476 | (52,554,571 | ) | — | (26,312 | ) | 2014 | |||||||||||||
(2,556,095 | ) | 2015 | ||||||||||||||||||
(67,952,089 | ) | 2016 | ||||||||||||||||||
(155,633,473 | ) | 2017 | ||||||||||||||||||
$ | (226,167,969 | ) | ||||||||||||||||||
International SmallCap Multi-Manager | 5,650,507 | 18,384,209 | — | (153,088,443 | ) | 2016 | ||||||||||||||
(202,601,991 | ) | 2017 | ||||||||||||||||||
$ | (355,690,434 | ) | ||||||||||||||||||
International Value | 26,116,366 | (140,589,828 | ) | — | (810,375,946 | ) | 2017 | |||||||||||||
International Value Choice | 314,319 | (3,448,641 | ) | — | (104,782 | ) | 2016 | |||||||||||||
(14,657,112 | ) | 2017 | ||||||||||||||||||
$ | (14,761,894 | ) | ||||||||||||||||||
Russia | — | (15,763,775 | ) | — | (70,982,152 | ) | 2017 | |||||||||||||
Global Bond | 8,319,175 | 20,754,518 | — | — | ||||||||||||||||
Diversified International | — | (55,187,905 | ) | — | (28,060,058 | ) | 2016 | |||||||||||||
(93,445,922 | ) | 2017 | ||||||||||||||||||
$ | (121,505,980 | ) | ||||||||||||||||||
(1) | As of the Fund’s tax year ended December 31, 2008. |
* | Utilization of these capital losses is subject to annual limitations under Section 382 of the Internal Revenue Code. |
The Funds’ major tax jurisdictions are federal and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2004.
As of October 31, 2009, no provisions for income tax would be required in the Funds’ financial statements as a result of tax positions taken on federal income tax returns for open tax years. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue.
NOTE 18 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS
As discussed in earlier supplements that were previously filed with the SEC, ING agreed with the Funds to indemnify and hold harmless the Funds from all damages resulting from wrongful conduct by ING or its employees or from ING’s internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the U.S. Securities and Exchange Commission in connection with investigations related to mutual funds and variable insurance products. On December 17, 2008, ING settled its indemnification commitments by making payments to the affected Funds. In connection with the settlement, ING paid:
Emerging Countries | $ | 1,400,280 | ||
Index Plus International Equity | $ | 497,810 | ||
International SmallCap Multi-Manager | $ | 2,661,920 | ||
International Value | $ | 955,441 |
107
Table of Contents
NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 19 — SUBSEQUENT EVENTS
Dividends: Subsequent to October 31, 2009, the following Funds paid dividends and distributions of:
Net Investment | Short-Term | Payable | Record | |||||||||
Income | Capital Gains | Date | Date | |||||||||
Global Natural Resources | ||||||||||||
Class A | $ | 0.0238 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.0567 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class W | $ | 0.0546 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Global Value Choice | ||||||||||||
Class A | $ | 0.0686 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class B | $ | — | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class C | $ | — | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class I | $ | 0.1290 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class Q | $ | 0.0610 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class W | $ | 0.1307 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class A | $ | 0.0968 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | 0.0708 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | 0.0751 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.1082 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class W | $ | 0.1082 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Greater China | ||||||||||||
Class A | $ | 0.2107 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | 0.1201 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | 0.1568 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.2672 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class O | $ | 0.2340 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Index Plus International Equity | ||||||||||||
Class A | $ | 0.1358 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | 0.0722 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | 0.0812 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.1481 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class O | $ | 0.1360 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
International SmallCap Multi-Manager | ||||||||||||
Class A | $ | 0.2561 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class B | $ | 0.0126 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class C | $ | 0.1116 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class I | $ | 0.3856 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class O | $ | 0.3318 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class Q | $ | 0.3151 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class W | $ | 0.3790 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class A | $ | 0.0909 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | 0.0635 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | 0.0695 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.1106 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class O | $ | 0.0794 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class W | $ | 0.1062 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
International Value | ||||||||||||
Class A | $ | 0.1432 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class B | $ | 0.0247 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class C | $ | 0.0839 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class I | $ | 0.1883 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class Q | $ | 0.1912 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class W | $ | 0.1862 | $ | — | November 19, 2009 | November 17, 2009 | ||||||
Class A | $ | 0.0278 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | 0.0178 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | 0.0197 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.0333 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class W | $ | 0.0329 | $ | — | December 16, 2009 | December 14, 2009 |
108
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NOTES TO FINANCIAL STATEMENTS as of October 31, 2009 (continued)
NOTE 19 — SUBSEQUENT EVENTS (continued)
Net Investment | Short-Term | Payable | Record | |||||||||
Income | Capital Gains | Date | Date | |||||||||
International Value Choice | ||||||||||||
Class A | $ | 0.0551 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | — | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | — | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | 0.0719 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Class W | $ | 0.0740 | $ | — | December 16, 2009 | December 14, 2009 | ||||||
Global Bond | ||||||||||||
Class A | $ | 0.0916 | $ | — | November 3, 2009 | October 30, 2009 | ||||||
Class B | $ | 0.0838 | $ | — | November 3, 2009 | October 30, 2009 | ||||||
Class C | $ | 0.0844 | $ | — | November 3, 2009 | October 30, 2009 | ||||||
Class I | $ | 0.0951 | $ | — | November 3, 2009 | October 30, 2009 | ||||||
Class O | $ | 0.0914 | $ | — | November 3, 2009 | October 30, 2009 | ||||||
Class W | $ | 0.0951 | $ | — | November 3, 2009 | October 30, 2009 | ||||||
Class A | $ | 0.1069 | $ | — | December 2, 2009 | November 30, 2009 | ||||||
Class B | $ | 0.0990 | $ | — | December 2, 2009 | November 30, 2009 | ||||||
Class C | $ | 0.0997 | $ | — | December 2, 2009 | November 30, 2009 | ||||||
Class I | $ | 0.1100 | $ | — | December 2, 2009 | November 30, 2009 | ||||||
Class O | $ | 0.1068 | $ | — | December 2, 2009 | November 30, 2009 | ||||||
Class W | $ | 0.1093 | $ | — | December 2, 2009 | November 30, 2009 | ||||||
Class A | $ | — | $ | 0.0465 | December 16, 2009 | December 14, 2009 | ||||||
Class B | $ | — | $ | 0.0465 | December 16, 2009 | December 14, 2009 | ||||||
Class C | $ | — | $ | 0.0465 | December 16, 2009 | December 14, 2009 | ||||||
Class I | $ | — | $ | 0.0465 | December 16, 2009 | December 14, 2009 | ||||||
Class O | $ | — | $ | 0.0465 | December 16, 2009 | December 14, 2009 | ||||||
Class W | $ | — | $ | 0.0465 | December 16, 2009 | December 14, 2009 |
Effective November 21, 2009, Class Q shares of Foreign, Global Value Choice, International SmallCap Multi-Manager and International Value will be converted to Class W shares. Effective March 5, 2010, Class Q shares of Emerging Countries and International Capital Appreciation will be converted to Class W shares. Because Class Q shares of Global Natural Resources and Russia have no assets or shareholders, Class Q shares will be dissolved.
Effective January 4, 2010, Class B shares of the Funds, are closed to new investment, provided that: (1) Class B shares of the Funds may be purchased through the reinvestment of dividends issued by Class B Shares of the Fund; and (2) subject to the terms and conditions of relevant exchange privileges and as permitted under their respective prospectuses, Class B shares of the Fund may be acquired through exchange of Class B shares of other funds in the ING Mutual Funds Complex.
On November 12, 2009, the Board approved the removal of Batterymarch as one of the investment sub-advisers for International SmallCap Multi-Manager effective February 26, 2010. ING Investments will evaluate the optimal allocation of the assets under management by Batterymarch between International SmallCap Multi-Manager’s remaining sub-advisers, Acadian and Schroders on or near February 26, 2010. Additionally, in conjunction with this change and effective January 1, 2010, ING Investments has agreed to waive a portion of the advisory fee and revise the sub-advisory fee payable, with respect to Acadian.
Effective January 1, 2010, ING Investments has lowered the expense limitation agreements for Russia and Global Natural Resources.
The Funds have evaluated events occurring after the balance sheet date (subsequent events) through December 22, 2009, the date the financial statements were issued, to determine whether any subsequent events necessitated adjustment to or disclosure in the financial statements. Other than the above, no such subsequent events were identified.
109
Table of Contents
ING Global Equity Dividend Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 94.0% | ||||||||||||||
Australia: 6.1% | ||||||||||||||
66,141 | Australia & New Zealand Banking Group, Ltd. | $ | 1,349,020 | |||||||||||
283,002 | Foster’s Group, Ltd. | 1,387,922 | ||||||||||||
301,820 | Insurance Australia Group | 1,015,289 | ||||||||||||
280,477 | Macquarie Airports Management, Ltd. | 713,440 | ||||||||||||
25,497 | @ | Macquarie Airports Management, Ltd. — New | 65,869 | |||||||||||
125,278 | Suncorp-Metway, Ltd. | 979,908 | ||||||||||||
501,548 | Telstra Corp., Ltd. | 1,490,411 | ||||||||||||
59,943 | Wesfarmers, Ltd. | 1,495,773 | ||||||||||||
8,497,632 | ||||||||||||||
Brazil: 1.3% | ||||||||||||||
36,611 | Tele Norte Leste Participacoes SA ADR | 697,806 | ||||||||||||
45,158 | @ | Vale SA ADR | 1,043,150 | |||||||||||
1,740,956 | ||||||||||||||
Canada: 1.7% | ||||||||||||||
30,496 | @,L | Enerplus Resources Fund | 662,373 | |||||||||||
56,607 | TransCanada Corp. | 1,734,752 | ||||||||||||
2,397,125 | ||||||||||||||
Finland: 1.0% | ||||||||||||||
107,428 | Nokia OYJ | 1,356,947 | ||||||||||||
1,356,947 | ||||||||||||||
France: 5.8% | ||||||||||||||
31,817 | Carrefour SA | 1,365,671 | ||||||||||||
18,539 | Sanofi-Aventis | 1,358,948 | ||||||||||||
34,019 | @ | Total SA | 2,035,706 | |||||||||||
24,265 | @ | Vinci SA | 1,266,342 | |||||||||||
72,580 | Vivendi | 2,013,538 | ||||||||||||
8,040,205 | ||||||||||||||
Germany: 3.6% | ||||||||||||||
11,717 | Deutsche Boerse AG | 948,991 | ||||||||||||
37,106 | E.ON AG | 1,422,083 | ||||||||||||
8,509 | Muenchener Rueckversicherungs AG | 1,346,233 | ||||||||||||
14,267 | Siemens AG | 1,289,264 | ||||||||||||
5,006,571 | ||||||||||||||
Hong Kong: 1.0% | ||||||||||||||
28,365 | China Mobile, Ltd. ADR | 1,325,496 | ||||||||||||
1,325,496 | ||||||||||||||
Italy: 3.1% | ||||||||||||||
45,354 | Banche Popolari Unite Scpa | 647,830 | ||||||||||||
79,953 | ENI S.p.A. | 1,980,178 | ||||||||||||
20,014 | Italcementi S.p.A. RSP | 151,052 | ||||||||||||
302,265 | Snam Rete Gas S.p.A. | 1,466,049 | ||||||||||||
4,245,109 | ||||||||||||||
Japan: 7.4% | ||||||||||||||
724,600 | Mizuho Financial Group, Inc. | 1,429,224 | ||||||||||||
8,100 | Nintendo Co., Ltd. | 2,031,680 | ||||||||||||
972 | NTT DoCoMo, Inc. | 1,409,656 | ||||||||||||
107,100 | Shiseido Co., Ltd. | 1,955,340 | ||||||||||||
39,800 | Sumitomo Mitsui Financial Group, Inc. | 1,352,807 | ||||||||||||
35,500 | Takeda Pharmaceutical Co., Ltd. | 1,419,771 | ||||||||||||
19,000 | @ | Trend Micro, Inc. | 657,632 | |||||||||||
10,256,110 | ||||||||||||||
Netherlands: 2.5% | ||||||||||||||
69,538 | Royal Dutch Shell PLC | 2,061,708 | ||||||||||||
46,804 | Unilever NV | 1,442,173 | ||||||||||||
3,503,881 | ||||||||||||||
Singapore: 0.8% | ||||||||||||||
116,500 | DBS Group Holdings, Ltd. | 1,066,857 | ||||||||||||
1,066,857 | ||||||||||||||
South Korea: 1.2% | ||||||||||||||
63,352 | KT Corp. ADR | 1,016,800 | ||||||||||||
13,875 | S-Oil Corp. | 671,213 | ||||||||||||
1,688,013 | ||||||||||||||
Spain: 2.7% | ||||||||||||||
77,801 | Banco Bilbao Vizcaya Argentaria SA | 1,390,693 | ||||||||||||
83,545 | Banco Santander SA | 1,344,427 | ||||||||||||
38,278 | @ | Telefonica SA | 1,068,970 | |||||||||||
3,804,090 | ||||||||||||||
Switzerland: 1.8% | ||||||||||||||
7,442 | Alcon, Inc. | 1,062,643 | ||||||||||||
27,807 | Novartis AG | 1,448,026 | ||||||||||||
2,510,669 | ||||||||||||||
Taiwan: 1.0% | ||||||||||||||
146,738 | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 1,399,881 | ||||||||||||
1,399,881 | ||||||||||||||
United Kingdom: 9.5% | ||||||||||||||
31,732 | AstraZeneca PLC | 1,424,500 | ||||||||||||
155,036 | BP PLC | 1,452,730 | ||||||||||||
69,620 | GlaxoSmithKline PLC | 1,428,096 | ||||||||||||
126,278 | HSBC Holdings PLC | 1,395,388 | ||||||||||||
29,470 | Johnson Matthey PLC | 678,674 | ||||||||||||
183,852 | Reed Elsevier PLC | 1,391,981 | ||||||||||||
82,691 | Scottish & Southern Energy PLC | 1,459,478 | ||||||||||||
300,863 | Thomas Cook Group PLC | 1,007,498 | ||||||||||||
202,954 | United Utilities Group PLC | 1,463,177 | ||||||||||||
653,001 | Vodafone Group PLC | 1,439,106 | ||||||||||||
13,140,628 | ||||||||||||||
United States: 43.5% | ||||||||||||||
27,898 | Abbott Laboratories | 1,410,802 | ||||||||||||
39,096 | AGL Resources, Inc. | 1,366,796 | ||||||||||||
8,695 | Air Products & Chemicals, Inc. | 670,645 | ||||||||||||
59,555 | Altria Group, Inc. | 1,078,541 | ||||||||||||
45,937 | American Electric Power Co., Inc. | 1,388,216 | ||||||||||||
59,865 | @ | Arthur J. Gallagher & Co. | 1,335,588 | |||||||||||
84,064 | AT&T, Inc. | 2,157,920 | ||||||||||||
17,852 | Automatic Data Processing, Inc. | 710,510 | ||||||||||||
34,382 | Bank of Hawaii Corp. | 1,526,561 | ||||||||||||
63,435 | Bristol-Myers Squibb Co. | 1,382,883 | ||||||||||||
33,156 | Campbell Soup Co. | 1,052,703 | ||||||||||||
28,144 | Chevron Corp. | 2,154,142 | ||||||||||||
39,892 | Coca-Cola Co. | 2,126,643 | ||||||||||||
34,792 | Consolidated Edison, Inc. | 1,415,339 | ||||||||||||
14,370 | @ | Cullen/Frost Bankers, Inc. | 672,372 | |||||||||||
54,499 | Dow Chemical Co. | 1,279,637 | ||||||||||||
42,089 | @ | EI Du Pont de Nemours & Co. | 1,339,272 | |||||||||||
45,960 | Emerson Electric Co. | 1,734,990 | ||||||||||||
28,230 | @ | Exelon Corp. | 1,325,681 | |||||||||||
19,792 | ExxonMobil Corp. | 1,418,493 | ||||||||||||
68,992 | General Electric Co. | 983,826 | ||||||||||||
55,249 | H&R Block, Inc. | 1,013,267 | ||||||||||||
26,743 | Home Depot, Inc. | 670,982 | ||||||||||||
47,407 | Honeywell International, Inc. | 1,701,437 | ||||||||||||
71,392 | Intel Corp. | 1,364,301 | ||||||||||||
23,824 | Johnson & Johnson | 1,406,807 | ||||||||||||
30,534 | Kimberly-Clark Corp. | 1,867,459 | ||||||||||||
12,996 | @ | Kinder Morgan Energy Partners LP | 701,784 | |||||||||||
79,732 | Kraft Foods, Inc. | 2,194,225 |
See Accompanying Notes to Financial Statements
110
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
United States (continued) | ||||||||||||||
54,724 | Leggett & Platt, Inc. | $ | 1,057,815 | |||||||||||
26,020 | @ | Linear Technology Corp. | 673,398 | |||||||||||
8,935 | Lorillard, Inc. | 694,428 | ||||||||||||
30,725 | McDonald’s Corp. | 1,800,792 | ||||||||||||
44,144 | Merck & Co., Inc. | 1,365,374 | ||||||||||||
37,606 | @ | NYSE Euronext | 972,115 | |||||||||||
121,561 | Pfizer, Inc. | 2,070,184 | ||||||||||||
27,868 | Philip Morris International, Inc. | 1,319,828 | ||||||||||||
70,514 | Pitney Bowes, Inc. | 1,727,593 | ||||||||||||
25,214 | Procter & Gamble Co. | 1,462,412 | ||||||||||||
29,586 | Reynolds American, Inc. | 1,434,329 | ||||||||||||
128,764 | Sara Lee Corp. | 1,453,746 | ||||||||||||
29,150 | Snap-On, Inc. | 1,064,850 | ||||||||||||
44,453 | Southern Co. | 1,386,489 | ||||||||||||
52,982 | @ | Spectra Energy Corp. | 1,013,016 | |||||||||||
29,859 | Travelers Cos., Inc. | 1,486,680 | ||||||||||||
60,434,871 | ||||||||||||||
Total Common Stock (Cost $125,026,840) | 130,415,041 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 2.4% | ||||||||||||||
Australia: 0.4% | ||||||||||||||
57,343 | Westfield Group | 621,256 | ||||||||||||
621,256 | ||||||||||||||
Netherlands: 0.5% | ||||||||||||||
9,993 | Corio NV | 677,609 | ||||||||||||
677,609 | ||||||||||||||
United Kingdom: 0.5% | ||||||||||||||
90,698 | British Land Co. PLC | 700,517 | ||||||||||||
700,517 | ||||||||||||||
United States: 1.0% | ||||||||||||||
11,403 | Boston Properties, Inc. | 692,960 | ||||||||||||
17,561 | @ | Rayonier, Inc. | 677,503 | |||||||||||
1,370,463 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $3,547,794) | 3,369,845 | |||||||||||||
Total Long-Term Investments (Cost $128,574,634) | 133,784,886 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
SHORT-TERM INVESTMENTS: 0.2% | ||||||||||||||
Securities Lending CollateralCC: 0.2% | ||||||||||||||
$ | 203,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 203,000 | ||||||||||
123,900 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 99,120 | ||||||||||||
Total Short-Term Investments (Cost $326,900) | 302,120 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $128,901,534)* | 96.6 | % | $ | 134,087,006 | ||||||||||
Other Assets and Liabilities - Net | 3.4 | 4,683,380 | ||||||||||||
Net Assets | 100.0 | % | $ | 138,770,386 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $136,627,710. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 12,202,443 | ||
Gross Unrealized Depreciation | (14,743,147 | ) | ||
Net Unrealized Depreciation | $ | (2,540,704 | ) | |
Percentage of | ||||
Industry | Net Assets | |||
Agriculture | 3.3 | % | ||
Banks | 9.5 | |||
Beverages | 2.5 | |||
Building Materials | 0.1 | |||
Chemicals | 2.9 | |||
Commercial Services | 1.2 | |||
Cosmetics/Personal Care | 2.5 | |||
Diversified | 1.0 | |||
Diversified Financial Services | 1.4 | |||
Electric | 6.0 | |||
Electrical Components & Equipment | 1.2 | |||
Engineering & Construction | 1.5 | |||
Food | 5.4 | |||
Forest Products & Paper | 0.5 | |||
Gas | 2.0 | |||
Hand/Machine Tools | 0.8 | |||
Healthcare — Products | 1.8 | |||
Household Products/Wares | 1.3 | |||
Insurance | 3.7 | |||
Internet | 0.5 | |||
Leisure Time | 0.7 | |||
Media | 2.5 | |||
Mining | 0.7 | |||
Miscellaneous Manufacturing | 3.6 | |||
Office Property | 0.5 | |||
Office/Business Equipment | 1.2 | |||
Oil & Gas | 9.0 | |||
Pharmaceuticals | 9.6 | |||
Pipelines | 2.5 | |||
Retail | 2.9 | |||
Semiconductors | 2.5 | |||
Shopping Centers | 0.4 | |||
Telecommunications | 8.6 | |||
Toys/Games/Hobbies | 1.5 | |||
Water | 1.1 | |||
Short-Term Investments | 0.2 | |||
Other Assets and Liabilities — Net | 3.4 | |||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
111
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Equity Dividend Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | 65,869 | $ | 8,431,763 | $ | — | $ | 8,497,632 | ||||||||
Brazil | 1,740,956 | — | — | 1,740,956 | ||||||||||||
Canada | 2,397,125 | — | — | 2,397,125 | ||||||||||||
Finland | — | 1,356,947 | — | 1,356,947 | ||||||||||||
France | — | 8,040,205 | — | 8,040,205 | ||||||||||||
Germany | — | 5,006,571 | — | 5,006,571 | ||||||||||||
Hong Kong | 1,325,496 | — | — | 1,325,496 | ||||||||||||
Italy | — | 4,245,109 | — | 4,245,109 | ||||||||||||
Japan | — | 10,256,110 | — | 10,256,110 | ||||||||||||
Netherlands | — | 3,503,881 | — | 3,503,881 | ||||||||||||
Singapore | — | 1,066,857 | — | 1,066,857 | ||||||||||||
South Korea | 1,016,800 | 671,213 | — | 1,688,013 | ||||||||||||
Spain | — | 3,804,090 | — | 3,804,090 | ||||||||||||
Switzerland | 1,062,643 | 1,448,026 | — | 2,510,669 | ||||||||||||
Taiwan | 1,399,881 | — | — | 1,399,881 | ||||||||||||
United Kingdom | — | 13,140,628 | — | 13,140,628 | ||||||||||||
United States | 60,434,871 | — | — | 60,434,871 | ||||||||||||
Total Common Stock | 69,443,641 | 60,971,400 | — | 130,415,041 | ||||||||||||
Real Estate Investment Trusts | 1,370,463 | 1,999,382 | — | 3,369,845 | ||||||||||||
Short-Term Investments | 203,000 | 99,120 | — | 302,120 | ||||||||||||
Total Investments, at value | $ | 71,017,104 | $ | 63,069,902 | $ | — | $ | 134,087,006 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
112
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Natural Resources Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 99.2% | ||||||||||||||
Australia: 1.3% | ||||||||||||||
129,732 | @ | Australian Worldwide Exploration, Ltd. | $ | 297,382 | ||||||||||
15,076 | BHP Billiton, Ltd. ADR | 988,684 | ||||||||||||
1,286,066 | ||||||||||||||
Canada: 23.2% | ||||||||||||||
94,473 | Advantage Oil & Gas, Ltd. | 590,211 | ||||||||||||
83,188 | Barrick Gold Corp. | 2,988,945 | ||||||||||||
51,817 | Canadian Natural Resources, Ltd. | 3,351,005 | ||||||||||||
43,353 | @ | Eldorado Gold Corp. (Canadian Denominated Security) | 483,191 | |||||||||||
80,140 | EnCana Corp. | 4,438,955 | ||||||||||||
39,869 | GoldCorp, Inc. | 1,465,983 | ||||||||||||
56,242 | Kinross Gold Corp. | 1,044,976 | ||||||||||||
109,441 | Nexen, Inc. | 2,349,698 | ||||||||||||
70,364 | Suncor Energy, Inc. | 2,323,419 | ||||||||||||
160,370 | Talisman Energy, Inc. | 2,721,479 | ||||||||||||
51,444 | @ | Teck Cominco, Ltd. — Class B | 1,487,760 | |||||||||||
23,245,622 | ||||||||||||||
France: 1.1% | ||||||||||||||
17,556 | Total SA ADR | 1,054,589 | ||||||||||||
1,054,589 | ||||||||||||||
Japan: 0.8% | ||||||||||||||
92 | Inpex Holdings, Inc. | 751,301 | ||||||||||||
751,301 | ||||||||||||||
Netherlands: 2.0% | ||||||||||||||
34,541 | Royal Dutch Shell PLC ADR — Class A | 2,052,081 | ||||||||||||
2,052,081 | ||||||||||||||
Russia: 1.2% | ||||||||||||||
21,300 | @ | Lukoil-Spon ADR | 1,235,648 | |||||||||||
1,235,648 | ||||||||||||||
South Africa: 1.0% | ||||||||||||||
9,146 | Anglogold Ashanti, Ltd. ADR | 343,341 | ||||||||||||
33,969 | Gold Fields, Ltd. ADR | 433,105 | ||||||||||||
23,726 | Harmony Gold Mining Co., Ltd. | 237,644 | ||||||||||||
1,014,090 | ||||||||||||||
United Kingdom: 2.7% | ||||||||||||||
77,325 | @ | Anglo American PLC ADR | 1,399,583 | |||||||||||
7,547 | Rio Tinto PLC ADR | 1,343,592 | ||||||||||||
2,743,175 | ||||||||||||||
United States: 65.9% | ||||||||||||||
101,847 | Alcoa, Inc. | 1,264,940 | ||||||||||||
38,930 | @ | Alpha Natural Resources, Inc. | 1,322,452 | |||||||||||
46,119 | Apache Corp. | 4,340,720 | ||||||||||||
77,957 | Arch Coal, Inc. | 1,688,549 | ||||||||||||
28,965 | Atlas Energy, Inc. | 758,304 | ||||||||||||
51,535 | @ | Cal Dive International, Inc. | 395,789 | |||||||||||
42,362 | @ | Cameron International Corp. | 1,566,123 | |||||||||||
52,587 | @ | Century Aluminum Co. | 455,929 | |||||||||||
84,032 | Chevron Corp. | 6,431,809 | ||||||||||||
31,993 | Cimarex Energy Co. | 1,252,846 | ||||||||||||
44,828 | Cliffs Natural Resources, Inc. | 1,594,532 | ||||||||||||
123,907 | ConocoPhillips | 6,217,653 | ||||||||||||
48,160 | Devon Energy Corp. | 3,116,434 | ||||||||||||
44,564 | @ | DryShips, Inc. | 269,167 | |||||||||||
29,219 | ENSCO International, Inc. | 1,337,938 | ||||||||||||
100,499 | ExxonMobil Corp. | 7,202,763 | ||||||||||||
28,088 | Freeport-McMoRan Copper & Gold, Inc. | 2,060,536 | ||||||||||||
59,128 | Frontier Oil Corp. | 819,514 | ||||||||||||
91,258 | Halliburton Co. | 2,665,646 | ||||||||||||
83,734 | International Paper Co. | 1,868,106 | ||||||||||||
70,481 | @ | National Oilwell Varco, Inc. | 2,889,016 | |||||||||||
37,399 | Occidental Petroleum Corp. | 2,837,836 | ||||||||||||
91,479 | Patterson-UTI Energy, Inc. | 1,425,243 | ||||||||||||
32,101 | Peabody Energy Corp. | 1,270,879 | ||||||||||||
76,443 | Schlumberger, Ltd. | 4,754,755 | ||||||||||||
56,393 | Smith International, Inc. | 1,563,778 | ||||||||||||
16,928 | @ | Transocean, Ltd. | 1,420,428 | |||||||||||
16,392 | United States Steel Corp. | 565,360 | ||||||||||||
67,430 | XTO Energy, Inc. | 2,802,391 | ||||||||||||
66,159,436 | ||||||||||||||
Total Common Stock (Cost $92,281,118) | 99,542,008 | |||||||||||||
SHORT-TERM INVESTMENTS: 1.0% | ||||||||||||||
Affiliated Mutual Fund: 1.0% | ||||||||||||||
1,006,000 | S | ING Institutional Prime Money Market Fund — Class I | 1,006,000 | |||||||||||
Total Short-Term Investments (Cost $1,006,000) | 1,006,000 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $93,287,118)* | 100.2 | % | $ | 100,548,008 | ||||||||||
Other Assets and Liabilities - Net | (0.2 | ) | (177,432 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 100,370,576 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
* | Cost for federal income tax purposes is $97,511,279. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 12,419,365 | ||
Gross Unrealized Depreciation | (9,382,636 | ) | ||
Net Unrealized Appreciation | $ | 3,036,729 | ||
Percentage of | ||||
Industry | Net Assets | |||
Coal | 4.3 | % | ||
Forest Products & Paper | 1.9 | |||
Iron/Steel | 2.1 | |||
Mining | 15.9 | |||
Oil & Gas | 60.3 | |||
Oil & Gas Services | 14.4 | |||
Trucking & Leasing | 0.3 | |||
Short-Term Investments | 1.0 | |||
Other Assets and Liabilities — Net | (0.2 | ) | ||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
113
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Natural Resources Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | 988,684 | $ | 297,382 | $ | — | $ | 1,286,066 | ||||||||
Canada | 23,245,622 | — | — | 23,245,622 | ||||||||||||
France | 1,054,589 | — | — | 1,054,589 | ||||||||||||
Japan | — | 751,301 | — | 751,301 | ||||||||||||
Netherlands | 2,052,081 | — | — | 2,052,081 | ||||||||||||
Russia | — | 1,235,648 | — | 1,235,648 | ||||||||||||
South Africa | 776,446 | 237,644 | — | 1,014,090 | ||||||||||||
United Kingdom | 1,343,592 | 1,399,583 | — | 2,743,175 | ||||||||||||
United States | 66,159,436 | — | — | 66,159,436 | ||||||||||||
Total Common Stock | 95,620,450 | 3,921,558 | — | 99,542,008 | ||||||||||||
Short-Term Investments | 1,006,000 | — | — | 1,006,000 | ||||||||||||
Total Investments, at value | $ | 96,626,450 | $ | 3,921,558 | $ | — | $ | 100,548,008 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
114
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 30.8% | ||||||||||||||
Australia: 0.7% | ||||||||||||||
1,404,000 | Lend Lease Corp., Ltd. | $ | 11,637,917 | |||||||||||
11,637,917 | ||||||||||||||
Austria: 0.2% | ||||||||||||||
612,510 | @,L | Immoeast Immobilien Anlagen AG | 3,233,273 | |||||||||||
3,233,273 | ||||||||||||||
Brazil: 1.1% | ||||||||||||||
1,185,700 | @ | BR Malls Participacoes SA | 12,714,506 | |||||||||||
822,800 | PDG Realty SA Empreendimentos e Participacoes | 6,866,008 | ||||||||||||
19,580,514 | ||||||||||||||
China: 0.4% | ||||||||||||||
9,795,000 | Kwg Property Holding, Ltd. | 7,026,438 | ||||||||||||
7,026,438 | ||||||||||||||
Finland: 0.0% | ||||||||||||||
176,680 | @ | Sponda OYJ | 633,060 | |||||||||||
633,060 | ||||||||||||||
Hong Kong: 15.0% | ||||||||||||||
5,053,657 | Cheung Kong Holdings, Ltd. | 64,137,454 | ||||||||||||
1,399,500 | Great Eagle Holding Co. | 3,691,718 | ||||||||||||
2,126,800 | Hang Lung Group, Ltd. | 10,661,012 | ||||||||||||
5,057,600 | Hang Lung Properties, Ltd. | 19,113,537 | ||||||||||||
1,452,000 | Henderson Land Development Co., Ltd. | 10,265,190 | ||||||||||||
3,850,700 | Hongkong Land Holdings, Ltd. | 18,177,657 | ||||||||||||
3,820,600 | Kerry Properties, Ltd. | 21,302,702 | ||||||||||||
5,488,500 | Shui On Land, Ltd. | 3,326,794 | ||||||||||||
1,718,800 | Sino Land Co. | 3,269,104 | ||||||||||||
5,411,000 | Sun Hung Kai Properties, Ltd. | 81,979,388 | ||||||||||||
3,239,075 | Wharf Holdings, Ltd. | 17,501,099 | ||||||||||||
253,425,655 | ||||||||||||||
India: 0.1% | ||||||||||||||
1,023,600 | Unitech, Ltd. (Global Instrument, Issuer: Macquarie Group, Ltd.) | 1,792,635 | ||||||||||||
1,792,635 | ||||||||||||||
Japan: 8.7% | ||||||||||||||
280,400 | Aeon Mall Co., Ltd. | 5,875,589 | ||||||||||||
175,000 | Daito Trust Construction Co., Ltd. | 7,274,121 | ||||||||||||
1,479,100 | Daiwa House Industry Co., Ltd. | 15,802,050 | ||||||||||||
2,258,300 | Mitsubishi Estate Co., Ltd. | 34,111,427 | ||||||||||||
3,238,100 | Mitsui Fudosan Co., Ltd. | 52,392,500 | ||||||||||||
1,665,900 | Sumitomo Realty & Development Co., Ltd. | 31,587,804 | ||||||||||||
147,043,491 | ||||||||||||||
Luxembourg: 0.3% | ||||||||||||||
506,550 | GAGFAH SA | 4,817,881 | ||||||||||||
4,817,881 | ||||||||||||||
Norway: 0.9% | ||||||||||||||
7,782,110 | @ | Norwegian Property ASA | 14,759,705 | |||||||||||
14,759,705 | ||||||||||||||
Singapore: 1.1% | ||||||||||||||
4,563,600 | CapitaLand, Ltd. | 13,233,913 | ||||||||||||
683,000 | City Developments, Ltd. | 4,785,269 | ||||||||||||
18,019,182 | ||||||||||||||
Sweden: 0.4% | ||||||||||||||
714,230 | Castellum AB | 6,648,016 | ||||||||||||
6,648,016 | ||||||||||||||
Switzerland: 0.7% | ||||||||||||||
215,420 | @,L | Swiss Prime Site AG | 11,857,978 | |||||||||||
11,857,978 | ||||||||||||||
United Kingdom: 1.2% | ||||||||||||||
1,234,420 | @,I | Atrium European Real Estate, Ltd. | 8,067,754 | |||||||||||
628,230 | @ | Grainger PLC | 2,952,224 | |||||||||||
476,477 | Helical Bar PLC | 2,583,977 | ||||||||||||
2,833,565 | I | Safestore Holdings, Ltd. | 6,582,675 | |||||||||||
20,186,630 | ||||||||||||||
Total Common Stock (Cost $459,045,669) | 520,662,375 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 63.3% | ||||||||||||||
Australia: 10.2% | ||||||||||||||
5,873,200 | CFS Retail Property Trust | 10,091,840 | ||||||||||||
31,204,845 | Dexus Property Group | 22,046,727 | ||||||||||||
20,301,600 | GPT Group | 10,360,517 | ||||||||||||
36,386,386 | Macquarie Goodman Group | 19,510,686 | ||||||||||||
8,975,886 | Mirvac Group | 11,752,268 | ||||||||||||
8,525,520 | Stockland | 28,321,106 | ||||||||||||
6,529,754 | Westfield Group | 70,743,610 | ||||||||||||
172,826,754 | ||||||||||||||
Canada: 1.0% | ||||||||||||||
309,600 | @ | Calloway Real Estate Investment Trust | 5,058,665 | |||||||||||
114,100 | Canadian Real Estate Investment Trust | 2,694,196 | ||||||||||||
261,700 | @ | Primaris Retail Real Estate | 3,809,228 | |||||||||||
279,600 | RioCan Real Estate Investment Trust | 4,739,027 | ||||||||||||
16,301,116 | ||||||||||||||
France: 7.3% | ||||||||||||||
66,310 | Gecina SA | 7,054,170 | ||||||||||||
31,950 | ICADE | 3,363,696 | ||||||||||||
630,577 | Klepierre | 26,137,625 | ||||||||||||
333,422 | Mercialys | 13,437,555 | ||||||||||||
326,636 | Unibail | 72,332,072 | ||||||||||||
122,325,118 | ||||||||||||||
Hong Kong: 0.5% | ||||||||||||||
4,067,200 | Link Real Estate Investment Trust | 9,159,306 | ||||||||||||
9,159,306 | ||||||||||||||
Japan: 2.7% | ||||||||||||||
1,049 | @ | Frontier Real Estate Investment Corp. | 7,905,419 | |||||||||||
185 | @ | Japan Excellent, Inc. | 868,419 | |||||||||||
771 | Japan Logistics Fund, Inc. | 5,858,239 | ||||||||||||
836 | Japan Real Estate Investment Corp. | 6,670,544 | ||||||||||||
306 | Japan Retail Fund Investment Corp. | 1,438,603 | ||||||||||||
1,626 | Kenedix Realty Investment Corp. | 4,663,211 | ||||||||||||
572 | L | Nippon Accommodations Fund, Inc. | 3,160,519 | |||||||||||
1,785 | Orix JREIT, Inc. | 8,175,787 | ||||||||||||
177 | Top REIT, Inc. | 783,654 | ||||||||||||
1,165 | @ | United Urban Investment Corp. | 6,795,734 | |||||||||||
46,320,129 | ||||||||||||||
See Accompanying Notes to Financial Statements
115
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Netherlands: 1.4% | ||||||||||||||
272,454 | Corio NV | $ | 18,474,650 | |||||||||||
121,049 | @,S | Eurocommercial Properties NV | 5,244,125 | |||||||||||
23,718,775 | ||||||||||||||
Singapore: 1.0% | ||||||||||||||
9,492,266 | Ascendas Real Estate Investment Trust | 12,337,914 | ||||||||||||
4,255,801 | CapitaMall Trust | 4,780,444 | ||||||||||||
17,118,358 | ||||||||||||||
United Kingdom: 6.2% | ||||||||||||||
3,306,887 | British Land Co. PLC | 25,541,142 | ||||||||||||
166,960 | Derwent Valley Holdings PLC | 3,400,879 | ||||||||||||
2,576,296 | Hammerson PLC | 17,088,544 | ||||||||||||
4,090,517 | Land Securities Group PLC | 44,259,763 | ||||||||||||
1,676,399 | Liberty International PLC | 12,374,655 | ||||||||||||
340,257 | Segro PLC | 1,960,774 | ||||||||||||
104,625,757 | ||||||||||||||
United States: 33.0% | ||||||||||||||
266,361 | Acadia Realty Trust | 4,235,140 | ||||||||||||
224,400 | L | Alexandria Real Estate Equities, Inc. | 12,155,748 | |||||||||||
617,700 | AMB Property Corp. | 13,577,047 | ||||||||||||
629,800 | @,L | Apartment Investment & Management Co. | 7,778,030 | |||||||||||
248,771 | AvalonBay Communities, Inc. | 17,110,469 | ||||||||||||
265,900 | L | Boston Properties, Inc. | 16,158,743 | |||||||||||
317,900 | BRE Properties, Inc. | 8,656,417 | ||||||||||||
302,800 | Camden Property Trust | 10,976,500 | ||||||||||||
39,700 | Corporate Office Properties Trust SBI MD | 1,317,643 | ||||||||||||
371,810 | L | Digital Realty Trust, Inc. | 16,779,785 | |||||||||||
1,001,100 | Duke Realty Corp. | 11,252,364 | ||||||||||||
278,800 | Equity Residential | 8,051,744 | ||||||||||||
77,600 | Essex Property Trust, Inc. | 5,833,968 | ||||||||||||
397,300 | @ | Extra Space Storage, Inc. | 3,802,161 | |||||||||||
187,800 | Federal Realty Investment Trust | 11,085,834 | ||||||||||||
885,800 | HCP, Inc. | 26,210,822 | ||||||||||||
432,200 | Highwoods Properties, Inc. | 11,894,144 | ||||||||||||
1,918,010 | Host Hotels & Resorts, Inc. | 19,391,081 | ||||||||||||
507,500 | Kimco Realty Corp. | 6,414,800 | ||||||||||||
706,075 | Liberty Property Trust | 20,737,423 | ||||||||||||
1,102,233 | Macerich Co. | 32,846,543 | ||||||||||||
764,300 | Nationwide Health Properties, Inc. | 24,648,675 | ||||||||||||
400,800 | Omega Healthcare Investors, Inc. | 6,076,128 | ||||||||||||
2,184,900 | ProLogis | 24,754,917 | ||||||||||||
186,854 | Public Storage, Inc. | 13,752,454 | ||||||||||||
303,300 | @,L | Regency Centers Corp. | 10,175,715 | |||||||||||
1,296,444 | Simon Property Group, Inc. | 88,015,583 | ||||||||||||
295,000 | L | SL Green Realty Corp. | 11,434,200 | |||||||||||
323,700 | Tanger Factory Outlet Centers, Inc. | 12,323,259 | ||||||||||||
251,000 | L | Taubman Centers, Inc. | 7,658,010 | |||||||||||
1,126,609 | UDR, Inc. | 16,200,637 | ||||||||||||
562,600 | Ventas, Inc. | 22,577,138 | ||||||||||||
708,651 | Vornado Realty Trust | 42,207,254 | ||||||||||||
599,400 | Weingarten Realty Investors | 11,088,900 | ||||||||||||
557,179,276 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $970,421,950) | 1,069,574,589 | |||||||||||||
MUTUAL FUNDS: 0.9% | ||||||||||||||
Australia:0.5% | ||||||||||||||
16,374,500 | ** | ING Office Fund | 8,639,456 | |||||||||||
8,639,456 | ||||||||||||||
Luxembourg: 0.4% | ||||||||||||||
920,434 | Prologis European Properties | 5,937,781 | ||||||||||||
5,937,781 | ||||||||||||||
Total Mutual Funds (Cost $13,479,760) | 14,577,237 | |||||||||||||
Total Long-Term Investments (Cost $1,442,947,379) | 1,604,814,201 | |||||||||||||
SHORT-TERM INVESTMENTS: 5.0% | ||||||||||||||
Affiliated Mutual Fund: 3.6% | ||||||||||||||
60,713,731 | ING Institutional Prime Money Market Fund — Class I | 60,713,731 | ||||||||||||
Total Mutual Fund (Cost $60,713,731) | 60,713,731 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Securities Lending CollateralCC: 1.4% | ||||||||||||||
$ | 21,342,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 21,342,000 | ||||||||||
2,745,317 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 2,196,253 | ||||||||||||
Total Securities Lending Collateral (Cost $24,087,317) | 23,538,253 | |||||||||||||
Total Short-Term Investments (Cost $84,801,048) | 84,251,984 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $1,527,748,427)* | 100.0 | % | $ | 1,689,066,185 | ||||||||||
Other Assets and Liabilities - Net | (0.0 | ) | (560,205 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 1,688,505,980 | ||||||||||
@ | Non-income producing security | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
I | Illiquid security | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
** | Investment in affiliate | |
* | Cost for federal income tax purposes is $1,775,235,051. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 156,138,316 | ||
Gross Unrealized Depreciation | (242,307,182 | ) | ||
Net Unrealized Depreciation | $ | (86,168,866 | ) | |
See Accompanying Notes to Financial Statements
116
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Real Estate Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Apartments | 4.6 | % | ||
Closed-End Funds | 0.4 | |||
Diversified | 27.1 | |||
Engineering & Construction | 0.1 | |||
Health Care | 4.7 | |||
Holding Companies — Diversified | 1.0 | |||
Home Builders | 0.9 | |||
Hotels | 1.2 | |||
Lodging | 0.3 | |||
Office Property | 4.3 | |||
Open-End Funds | 0.5 | |||
Real Estate | 28.3 | |||
Regional Malls | 7.6 | |||
Shopping Centers | 10.0 | |||
Storage | 1.0 | |||
Storage/Warehousing | 0.4 | |||
Warehouse/Industrial | 2.6 | |||
Short-Term Investments | 5.0 | |||
Other Assets and Liabilities — Net | 0.0 | |||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 11,637,917 | $ | — | $ | 11,637,917 | ||||||||
Austria | — | 3,233,273 | — | 3,233,273 | ||||||||||||
Brazil | 19,580,514 | — | — | 19,580,514 | ||||||||||||
China | — | 7,026,438 | — | 7,026,438 | ||||||||||||
Finland | — | 633,060 | — | 633,060 | ||||||||||||
Hong Kong | — | 253,425,655 | — | 253,425,655 | ||||||||||||
India | — | 1,792,635 | — | 1,792,635 | ||||||||||||
Japan | — | 147,043,491 | — | 147,043,491 | ||||||||||||
Luxembourg | — | 4,817,881 | — | 4,817,881 | ||||||||||||
Norway | — | 14,759,705 | — | 14,759,705 | ||||||||||||
Singapore | — | 18,019,182 | — | 18,019,182 | ||||||||||||
Sweden | — | 6,648,016 | — | 6,648,016 | ||||||||||||
Switzerland | — | 11,857,978 | — | 11,857,978 | ||||||||||||
United Kingdom | — | 20,186,630 | — | 20,186,630 | ||||||||||||
Total Common Stock | 19,580,514 | 501,081,861 | — | 520,662,375 | ||||||||||||
Real Estate Investment Trusts | 573,480,392 | 496,094,197 | — | 1,069,574,589 | ||||||||||||
Mutual Funds | — | 14,577,237 | — | 14,577,237 | ||||||||||||
Short-Term Investments | 82,055,731 | 2,196,253 | — | 84,251,984 | ||||||||||||
Total Investments, at value | $ | 675,116,637 | $ | 1,013,949,548 | $ | — | $ | 1,689,066,185 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
117
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 87.2% | ||||||||||||||
Australia: 0.8% | ||||||||||||||
1,086,270 | @ | Minara Resources, Ltd. | $ | 838,949 | ||||||||||
643,500 | @ | Mineral Deposits, Ltd. | 558,952 | |||||||||||
1,397,901 | ||||||||||||||
Brazil: 2.5% | ||||||||||||||
203,411 | @ | Centrais Eletricas Brasileiras SA ADR — Class B | 2,589,422 | |||||||||||
46,000 | @ | Cia de Saneamento Basico do Estado de Sao Paulo ADR | 1,771,920 | |||||||||||
4,361,342 | ||||||||||||||
Canada: 8.7% | ||||||||||||||
162,440 | Barrick Gold Corp. | 5,836,469 | ||||||||||||
107,000 | Cameco Corp. | 2,911,470 | ||||||||||||
1,527,375 | @ | Eastern Platinum, Ltd. | 1,016,321 | |||||||||||
2,136,372 | @ | Gabriel Resources, Ltd. | 4,086,955 | |||||||||||
113,926 | @,I | Westjet Airlines, Ltd. | 1,151,842 | |||||||||||
34,115 | @ | Westjet Airlines, Ltd. — Variable Voting Shares | 346,179 | |||||||||||
15,349,236 | ||||||||||||||
Cayman Islands: 0.5% | ||||||||||||||
477,125 | @,I | Endeavour Financial Corp. | 828,977 | |||||||||||
828,977 | ||||||||||||||
China: 0.7% | ||||||||||||||
11,120 | PetroChina Co., Ltd. ADR | 1,334,845 | ||||||||||||
1,334,845 | ||||||||||||||
Finland: 0.8% | ||||||||||||||
116,490 | UPM-Kymmene OYJ | 1,398,042 | ||||||||||||
1,398,042 | ||||||||||||||
France: 5.9% | ||||||||||||||
1,465 | Areva SA | 769,948 | ||||||||||||
23,120 | Electricite de France | 1,288,606 | ||||||||||||
111,275 | Sanofi-Aventis ADR | 4,108,273 | ||||||||||||
18,650 | Technip SA | 1,170,065 | ||||||||||||
62,297 | Thales SA | 3,018,445 | ||||||||||||
10,355,337 | ||||||||||||||
Germany: 0.9% | ||||||||||||||
115,626 | Deutsche Telekom AG ADR | 1,565,576 | ||||||||||||
1,565,576 | ||||||||||||||
India: 1.0% | ||||||||||||||
34,175 | ICICI Bank, Ltd. ADR | 1,074,804 | ||||||||||||
62,400 | L | Tata Motors, Ltd. ADR | 710,112 | |||||||||||
1,784,916 | ||||||||||||||
Italy: 2.7% | ||||||||||||||
221,400 | ERG S.p.A. | 3,267,914 | ||||||||||||
1,391,336 | Telecom Italia S.p.A. RNC | 1,531,147 | ||||||||||||
4,799,061 | ||||||||||||||
Japan: 18.1% | ||||||||||||||
153,000 | 77 Bank, Ltd. | 880,514 | ||||||||||||
332,000 | Daiwa Securities Group, Inc. | 1,747,423 | ||||||||||||
406 | Fields Corp. | 542,786 | ||||||||||||
45,700 | Futaba Corp. | 707,547 | ||||||||||||
5,800 | Hakuhodo DY Holdings, Inc. | 291,316 | ||||||||||||
42,400 | JS Group Corp. | 691,990 | ||||||||||||
150,000 | Kao Corp. | 3,341,076 | ||||||||||||
69,000 | Kirin Brewery Co., Ltd. | 1,126,293 | ||||||||||||
123,000 | Mitsui & Co., Ltd. | 1,615,353 | ||||||||||||
253,000 | Nippon Oil Corp. | 1,246,722 | ||||||||||||
154,100 | Nippon Telegraph & Telephone Corp. | 6,358,532 | ||||||||||||
29,575 | Nippon Telegraph & Telephone Corp. ADR | 607,471 | ||||||||||||
22,600 | Nissin Food Products Co., Ltd. | 797,507 | ||||||||||||
415,000 | Sekisui House, Ltd. | 3,588,810 | ||||||||||||
78,200 | Seven & I Holdings Co., Ltd. | 1,711,974 | ||||||||||||
949,000 | Sumitomo Osaka Cement Co., Ltd. | 1,662,405 | ||||||||||||
479,000 | Sumitomo Trust & Banking Co., Ltd. | 2,495,587 | ||||||||||||
196,000 | Toppan Printing Co., Ltd. | 1,751,736 | ||||||||||||
452 | TV Asahi Corp. | 687,254 | ||||||||||||
31,852,296 | ||||||||||||||
Norway: 2.4% | ||||||||||||||
3,998,030 | @,L | Marine Harvest | 2,900,659 | |||||||||||
57,000 | Statoil ASA ADR | 1,348,620 | ||||||||||||
4,249,279 | ||||||||||||||
Papua New Guinea: 3.2% | ||||||||||||||
2,051,100 | @ | Lihir Gold, Ltd. | 5,610,082 | |||||||||||
5,610,082 | ||||||||||||||
Russia: 0.7% | ||||||||||||||
50,650 | @ | OAO Gazprom ADR | 1,214,691 | |||||||||||
1,214,691 | ||||||||||||||
South Africa: 2.4% | ||||||||||||||
35,240 | Anglogold Ashanti, Ltd. ADR | 1,322,910 | ||||||||||||
230,310 | Gold Fields, Ltd. | 2,946,593 | ||||||||||||
4,269,503 | ||||||||||||||
South Korea: 2.0% | ||||||||||||||
196,850 | @ | Korea Electric Power Corp. ADR | 2,732,278 | |||||||||||
51,810 | KT Corp. ADR | 831,551 | ||||||||||||
3,563,829 | ||||||||||||||
Switzerland: 1.0% | ||||||||||||||
103,500 | @ | UBS AG — Reg | 1,717,065 | |||||||||||
1,717,065 | ||||||||||||||
Thailand: 0.8% | ||||||||||||||
233,700 | Bangkok Bank PCL | 783,829 | ||||||||||||
2,435,400 | Krung Thai Bank PCL | 634,909 | ||||||||||||
1,418,738 | ||||||||||||||
Turkey: 0.7% | ||||||||||||||
71,625 | Turkcell Iletisim Hizmet AS ADR | 1,176,799 | ||||||||||||
1,176,799 | ||||||||||||||
United Kingdom: 4.7% | ||||||||||||||
19,325 | AstraZeneca PLC ADR | 867,886 | ||||||||||||
29,900 | BP PLC ADR | 1,692,938 | ||||||||||||
293,300 | Mondi PLC | 1,618,933 | ||||||||||||
188,500 | @ | Stolt-Nielsen SA | 2,598,475 | |||||||||||
69,505 | Vodafone Group PLC ADR | 1,542,316 | ||||||||||||
8,320,548 | ||||||||||||||
United States: 26.7% | ||||||||||||||
62,100 | Aetna, Inc. | 1,616,463 | ||||||||||||
68,800 | @ | AGCO Corp. | 1,933,968 | |||||||||||
115,600 | Alcoa, Inc. | 1,435,752 | ||||||||||||
61,700 | Ameren Corp. | 1,501,778 | ||||||||||||
101,150 | BJ Services Co. | 1,942,080 | ||||||||||||
31,624 | ConocoPhillips | 1,586,892 |
See Accompanying Notes to Financial Statements
118
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
United States (continued) | ||||||||||||||
17,250 | @ | Consol Energy, Inc. | $ | 738,473 | ||||||||||
114,373 | @ | eBay, Inc. | 2,547,087 | |||||||||||
118,820 | Kroger Co. | 2,748,307 | ||||||||||||
32,200 | Loews Corp. | 1,065,820 | ||||||||||||
86,150 | Microsoft Corp. | 2,388,940 | ||||||||||||
135,715 | Newmont Mining Corp. | 5,898,174 | ||||||||||||
66,700 | Peabody Energy Corp. | 2,640,653 | ||||||||||||
201,600 | Pfizer, Inc. | 3,433,248 | ||||||||||||
194,000 | @ | Smithfield Foods, Inc. | 2,587,960 | |||||||||||
29,015 | @ | Tech Data Corp. | 1,115,046 | |||||||||||
111,441 | Tesoro Corp. | 1,575,776 | ||||||||||||
302,712 | Tyson Foods, Inc. | 3,789,954 | ||||||||||||
57,221 | Union Pacific Corp. | 3,155,166 | ||||||||||||
66,210 | Wal-Mart Stores, Inc. | 3,289,313 | ||||||||||||
46,990,850 | ||||||||||||||
Total Common Stock (Cost $128,775,817) | 153,558,913 | |||||||||||||
PREFERRED STOCK: 0.7% | ||||||||||||||
Brazil: 0.7% | ||||||||||||||
539,501 | Tim Participacoes SA | 1,277,089 | ||||||||||||
Total Preferred Stock (Cost $742,335) | 1,277,089 | |||||||||||||
WARRANTS: 0.1% | ||||||||||||||
Cayman Islands: 0.1% | ||||||||||||||
336,822 | I | Endeavour Financial Corp. | 227,235 | |||||||||||
Total Warrants (Cost $139,231) | 227,235 | |||||||||||||
Total Long-Term Investments (Cost $129,657,383) | 155,063,237 | |||||||||||||
SHORT-TERM INVESTMENTS: 14.4% | ||||||||||||||
Affiliated Mutual Fund: 12.2% | ||||||||||||||
21,411,118 | ING Institutional Prime Money Market Fund — Class I | 21,411,118 | ||||||||||||
Total Mutual Fund (Cost $21,411,118) | 21,411,118 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Securities Lending CollateralCC: 2.2% | ||||||||||||||
$ | 3,630,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A (1) | $ | 3,630,000 | ||||||||||
287,772 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B (1)(2) | 230,218 | ||||||||||||
Total Securities Lending Collateral (Cost $3,917,772) | 3,860,218 | |||||||||||||
Total Short-Term Investments (Cost $25,328,890) | 25,271,336 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $154,986,273)* | 102.4 | % | $ | 180,334,573 | ||||||||||
Other Assets and Liabilities - Net | (2.4 | ) | (4,164,119 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 176,170,454 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | |
I | Illiquid security | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $159,777,139. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 26,847,507 | ||
Gross Unrealized Depreciation | (6,290,073 | ) | ||
Net Unrealized Appreciation | $ | 20,557,434 | ||
Percentage of | ||||
Industry | Net Assets | |||
Advertising | 0.2 | % | ||
Aerospace/Defense | 1.7 | |||
Airlines | 0.9 | |||
Auto Manufacturers | 0.4 | |||
Banks | 4.3 | |||
Beverages | 0.6 | |||
Building Materials | 1.3 | |||
Coal | 1.9 | |||
Commercial Services | 1.0 | |||
Cosmetics/Personal Care | 1.9 | |||
Distribution/Wholesale | 1.6 | |||
Diversified Financial Services | 1.0 | |||
Electric | 4.6 | |||
Electronics | 0.4 | |||
Energy — Alternate Sources | 0.4 | |||
Food | 7.3 | |||
Forest Products & Paper | 1.7 | |||
Healthcare — Services | 0.9 | |||
Home Builders | 2.0 | |||
Insurance | 0.6 | |||
Internet | 1.5 | |||
Investment Companies | 0.6 | |||
Leisure Time | 0.3 | |||
Machinery — Diversified | 1.1 | |||
Media | 0.4 | |||
Mining | 18.4 | |||
Oil & Gas | 7.5 | |||
Oil & Gas Services | 1.8 | |||
Pharmaceuticals | 4.8 | |||
Retail | 2.8 | |||
Software | 1.4 | |||
Telecommunications | 8.4 | |||
Transportation | 3.3 | |||
Water | 1.0 | |||
Short-Term Investments | 14.4 | |||
Other Assets and Liabilities — Net | (2.4 | ) | ||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
119
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Value Choice Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 1,397,901 | $ | — | $ | 1,397,901 | ||||||||
Brazil | 4,361,342 | — | — | 4,361,342 | ||||||||||||
Canada | 15,349,236 | — | — | 15,349,236 | ||||||||||||
Cayman Islands | 828,977 | — | — | 828,977 | ||||||||||||
China | 1,334,845 | — | — | 1,334,845 | ||||||||||||
Finland | — | 1,398,042 | — | 1,398,042 | ||||||||||||
France | 4,108,273 | 6,247,064 | — | 10,355,337 | ||||||||||||
Germany | 1,565,576 | — | — | 1,565,576 | ||||||||||||
India | 1,784,916 | — | — | 1,784,916 | ||||||||||||
Italy | — | 4,799,061 | — | 4,799,061 | ||||||||||||
Japan | 607,471 | 31,244,825 | — | 31,852,296 | ||||||||||||
Norway | 1,348,620 | 2,900,659 | — | 4,249,279 | ||||||||||||
Papua New Guinea | — | 5,610,082 | — | 5,610,082 | ||||||||||||
Russia | — | 1,214,691 | — | 1,214,691 | ||||||||||||
South Africa | 1,322,910 | 2,946,593 | — | 4,269,503 | ||||||||||||
South Korea | 3,563,829 | — | — | 3,563,829 | ||||||||||||
Switzerland | 1,717,065 | — | — | 1,717,065 | ||||||||||||
Thailand | — | 1,418,738 | — | 1,418,738 | ||||||||||||
Turkey | 1,176,799 | — | — | 1,176,799 | ||||||||||||
United Kingdom | 4,103,140 | 4,217,408 | — | 8,320,548 | ||||||||||||
United States | 46,990,850 | — | — | 46,990,850 | ||||||||||||
Total Common Stock | 90,163,849 | 63,395,064 | — | 153,558,913 | ||||||||||||
Preferred Stock | 1,277,089 | — | — | 1,277,089 | ||||||||||||
Warrants | — | 227,235 | — | 227,235 | ||||||||||||
Short-Term Investments | 25,041,118 | 230,218 | — | 25,271,336 | ||||||||||||
Total Investments, at value | $ | 116,482,056 | $ | 63,852,517 | $ | — | $ | 180,334,573 | ||||||||
Other Financial Instruments+: | ||||||||||||||||
Forward foreign currency contracts | — | 8,821 | — | 8,821 | ||||||||||||
Total Assets | $ | 116,482,056 | $ | 63,861,338 | $ | — | $ | 180,343,394 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
+ | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, futures, swaps, and written options. |
Forward foreign currency contracts and futures are reported at their unrealized gain/loss at measurement date which represents the amount due to/from the Fund. Swaps and written options are reported at their market value at measurement date. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
At October 31, 2009 the following forward foreign currency contracts were outstanding for the ING Global Value Choice Fund:
In | Unrealized | |||||||||||||||||||
Settlement | Exchange | Appreciation | ||||||||||||||||||
Currency | Buy/Sell | Date | For | Value | (Depreciation) | |||||||||||||||
USD | ||||||||||||||||||||
Canadian Dollar | ||||||||||||||||||||
CAD 339,980 | SELL | 11/4/09 | 323,021 | 314,200 | $ | 8,821 | ||||||||||||||
$ | 8,821 | |||||||||||||||||||
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2009 was as follows:
Derivatives not accounted for | ||||||
as hedging instruments | Location on Statement | |||||
under FASB ASC 815 | of Assets and Liabilities | Fair Value | ||||
Asset Derivatives | ||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | $ | 8,821 | |||
Total Asset Derivatives | $ | 8,821 | ||||
The effect of derivative instruments on the Fund’s Statement of Operations for the year ended October 31, 2009 was as follows:
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | ||||
Derivatives not | Forward | |||
accounted for as | Foreign | |||
hedging instruments | Currency | |||
under FASB ASC 815 | Contracts | |||
Foreign exchange contracts | $ | (40,737 | ) | |
Total | $ | (40,737 | ) | |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | ||||
Derivatives not | Forward | |||
accounted for as | Foreign | |||
hedging instruments | Currency | |||
under FASB ASC 815 | Contracts | |||
Foreign exchange contracts | $ | 8,821 | ||
Total | $ | 8,821 | ||
See Accompanying Notes to Financial Statements
120
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Asia-Pacific Real Estate Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 61.3% | ||||||||||||||
Australia: 1.7% | ||||||||||||||
9,000 | Lend Lease Corp., Ltd. | $ | 74,602 | |||||||||||
74,602 | ||||||||||||||
Hong Kong: 32.3% | ||||||||||||||
24,602 | Cheung Kong Holdings, Ltd. | 312,231 | ||||||||||||
11,000 | China Resources Land, Ltd. | 26,554 | ||||||||||||
18,400 | Great Eagle Holding Co. | 48,537 | ||||||||||||
14,000 | Hang Lung Group, Ltd. | 70,178 | ||||||||||||
24,000 | Hang Lung Properties, Ltd. | 90,700 | ||||||||||||
13,600 | Henderson Land Development Co., Ltd. | 96,148 | ||||||||||||
24,600 | Hongkong Land Holdings, Ltd. | 116,127 | ||||||||||||
2,000 | Hopewell Holdings | 6,292 | ||||||||||||
17,000 | Kerry Properties, Ltd. | 94,788 | ||||||||||||
39,500 | Shui On Land, Ltd. | 23,942 | ||||||||||||
28,000 | Sino Land Co. | 53,255 | ||||||||||||
24,100 | Sun Hung Kai Properties, Ltd. | 365,127 | ||||||||||||
16,600 | Wharf Holdings, Ltd. | 89,692 | ||||||||||||
13,000 | Wheelock & Co., Ltd. | 41,766 | ||||||||||||
1,435,337 | ||||||||||||||
Japan: 20.7% | ||||||||||||||
3,620 | Aeon Mall Co., Ltd. | 75,855 | ||||||||||||
819 | Daito Trust Construction Co., Ltd. | 34,043 | ||||||||||||
6,900 | Daiwa House Industry Co., Ltd. | 73,717 | ||||||||||||
18,100 | Mitsubishi Estate Co., Ltd. | 273,398 | ||||||||||||
17,900 | Mitsui Fudosan Co., Ltd. | 289,622 | ||||||||||||
47 | NTT Urban Development Corp. | 37,757 | ||||||||||||
7,000 | Sumitomo Realty & Development Co., Ltd. | 132,730 | ||||||||||||
917,122 | ||||||||||||||
Macau: 1.1% | ||||||||||||||
37,600 | @ | Wynn Macau, Ltd. | 48,369 | |||||||||||
48,369 | ||||||||||||||
Singapore: 5.5% | ||||||||||||||
27,000 | Allgreen Properties, Ltd. | 21,796 | ||||||||||||
34,000 | Ascendas India Trust | 22,561 | ||||||||||||
42,150 | CapitaLand, Ltd. | 122,230 | ||||||||||||
9,000 | City Developments, Ltd. | 63,056 | ||||||||||||
11,000 | @ | Wing Tai Holdings, Ltd. | 12,877 | |||||||||||
242,520 | ||||||||||||||
Total Common Stock (Cost $2,541,534) | 2,717,950 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 35.6% | ||||||||||||||
Australia: 21.2% | ||||||||||||||
50,900 | CFS Retail Property Trust | 87,461 | ||||||||||||
114,900 | Dexus Property Group | 81,179 | ||||||||||||
82,294 | GPT Group | 41,997 | ||||||||||||
60,200 | Macquarie CountryWide Trust | 33,307 | ||||||||||||
176,473 | Macquarie Goodman Group | 94,626 | ||||||||||||
75,924 | Mirvac Group | 99,408 | ||||||||||||
36,784 | Stockland | 122,194 | ||||||||||||
34,961 | S | Westfield Group | 378,769 | |||||||||||
938,941 | ||||||||||||||
Hong Kong: 2.2% | ||||||||||||||
44,000 | Link Real Estate Investment Trust | 99,088 | ||||||||||||
99,088 | ||||||||||||||
Japan: 8.7% | ||||||||||||||
6 | Frontier Real Estate Investment Corp. | 45,217 | ||||||||||||
3 | Fukuoka Real Estate Investment Trust Corp. | 17,190 | ||||||||||||
4 | Japan Excellent, Inc. | 18,777 | ||||||||||||
4 | Japan Logistics Fund, Inc. | 30,393 | ||||||||||||
6 | Japan Real Estate Investment Corp. | 47,875 | ||||||||||||
9 | Kenedix Realty Investment Corp. | 25,811 | ||||||||||||
3 | Nippon Accommodations Fund, Inc. | 16,576 | ||||||||||||
5 | Nippon Building Fund, Inc. | 40,985 | ||||||||||||
7 | Nomura Real Estate Office Fund, Inc. | 43,251 | ||||||||||||
5 | Orix JREIT, Inc. | 22,901 | ||||||||||||
6 | Top REIT, Inc. | 26,565 | ||||||||||||
9 | United Urban Investment Corp. | 52,499 | ||||||||||||
388,040 | ||||||||||||||
Singapore: 3.5% | ||||||||||||||
43,133 | Ascendas Real Estate Investment Trust | 56,064 | ||||||||||||
57,000 | CapitaCommercial Trust | 42,855 | ||||||||||||
29,480 | CapitaMall Trust | 33,114 | ||||||||||||
63,000 | Fortune Real Estate Investment Trust | 22,635 | ||||||||||||
154,668 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $1,384,048) | 1,580,737 | |||||||||||||
MUTUAL FUNDS: 1.1% | ||||||||||||||
Australia: 1.1% | ||||||||||||||
95,600 | ** | ING Office Fund | 50,440 | |||||||||||
Total Mutual Funds (Cost $48,723) | 50,440 | |||||||||||||
Total Long-Term Investments (Cost $3,974,305) | 4,349,127 | |||||||||||||
SHORT-TERM INVESTMENTS: 3.4% | ||||||||||||||
Affiliated Mutual Fund: 3.4% | ||||||||||||||
152,029 | ING Institutional Prime Money Market Fund — Class I | 152,029 | ||||||||||||
Total Short-Term Investments (Cost $152,029) | 152,029 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $4,126,334)* | 101.4 | % | $ | 4,501,156 | ||||||||||
Other Assets and Liabilities - Net | (1.4 | ) | (63,878 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 4,437,278 | ||||||||||
@ | Non-income producing security | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
** | Investment in affiliate | |
* | Cost for federal income tax purposes is $5,141,998. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 300,092 | ||
Gross Unrealized Depreciation | (940,934 | ) | ||
Net Unrealized Depreciation | $ | (640,842 | ) | |
Percentage of | ||||
Industry | Net Assets | |||
Apartments | 0.4 | % | ||
Diversified | 14.9 | |||
Holding Companies — Diversified | 2.0 | |||
Home Builders | 1.7 | |||
Lodging | 2.5 | |||
Office Property | 4.4 | |||
Open-End Funds | 1.1 | |||
Real Estate | 54.6 | |||
Shopping Centers | 15.7 | |||
Warehouse/Industrial | 0.7 | |||
Short-Term Investments | 3.4 | |||
Other Assets and Liabilities — Net | (1.4 | ) | ||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
121
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Asia-Pacific Real Estate Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 74,602 | $ | — | $ | 74,602 | ||||||||
Hong Kong | — | 1,435,337 | — | 1,435,337 | ||||||||||||
Japan | — | 917,122 | — | 917,122 | ||||||||||||
Macau | 48,369 | — | — | 48,369 | ||||||||||||
Singapore | 22,561 | 219,959 | — | 242,520 | ||||||||||||
Total Common Stock | 70,930 | 2,647,020 | — | 2,717,950 | ||||||||||||
Real Estate Investment Trusts | — | 1,580,737 | — | 1,580,737 | ||||||||||||
Mutual Funds | — | 50,440 | — | 50,440 | ||||||||||||
Short-Term Investments | 152,029 | — | — | 152,029 | ||||||||||||
Total Investments, at value | $ | 222,959 | $ | 4,278,197 | $ | — | $ | 4,501,156 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
122
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 91.5% | ||||||||||||||
Bermuda: 0.6% | ||||||||||||||
12,542 | Credicorp, Ltd. | $ | 865,774 | |||||||||||
865,774 | ||||||||||||||
Brazil: 17.1% | ||||||||||||||
127,418 | Banco Itau Holding Financeira SA ADR | 2,438,780 | ||||||||||||
138,000 | @ | Banco Santander Brasil SA | 1,629,428 | |||||||||||
89,345 | @ | BR Malls Participacoes SA | 958,065 | |||||||||||
8,841 | Cia de Bebidas das Americas ADR | 796,397 | ||||||||||||
47,977 | Cia Siderurgica Nacional SA | 1,584,799 | ||||||||||||
159,025 | CIA Vale do Rio Doce | 4,039,719 | ||||||||||||
41,000 | Lojas Renner SA | 726,158 | ||||||||||||
112,000 | @ | MMX Mineracao e Metalicos SA | 733,061 | |||||||||||
36,106 | Mrv Engenharia | 678,422 | ||||||||||||
1,600 | OGX Petroleo e Gas Participacoes SA | 1,289,737 | ||||||||||||
28,665 | @ | Perdigao SA | 691,078 | |||||||||||
214,970 | Petroleo Brasileiro SA | 4,942,260 | ||||||||||||
41,267 | Petroleo Brasileiro SA ADR | 1,655,632 | ||||||||||||
56,512 | Vale SA ADR | 1,440,491 | ||||||||||||
23,604,027 | ||||||||||||||
Canada: 0.9% | ||||||||||||||
106,386 | @ | Pacific Rubiales Energy Corp. | 1,294,860 | |||||||||||
1,294,860 | ||||||||||||||
China: 11.5% | ||||||||||||||
2,483 | @ | Baidu.com ADR | 938,375 | |||||||||||
4,033,000 | Bank of China, Ltd. | 2,339,508 | ||||||||||||
377,500 | China Life Insurance Co., Ltd. | 1,735,683 | ||||||||||||
987,000 | China Petroleum & Chemical Corp. | 837,047 | ||||||||||||
643,500 | China Shenhua Energy Co., Ltd. | 2,886,807 | ||||||||||||
11,800 | @ | Ctrip.com International, Ltd. ADR | 631,772 | |||||||||||
4,248,000 | Industrial and Commercial Bank of China, Ltd. | 3,379,772 | ||||||||||||
749,000 | Parkson Retail Group, Ltd. | 1,212,605 | ||||||||||||
962,000 | Sino-Ocean Land Holdings, Ltd. | 935,541 | ||||||||||||
1,609,000 | Want Want China Holdings, Ltd. | 945,299 | ||||||||||||
15,842,409 | ||||||||||||||
Egypt: 1.2% | ||||||||||||||
137,000 | Egyptian Financial Group-Hermes Holding | 795,392 | ||||||||||||
17,000 | Orascom Construction Industries | 803,493 | ||||||||||||
1,598,885 | ||||||||||||||
Hong Kong: 6.7% | ||||||||||||||
88,000 | Beijing Enterprises Holdings, Ltd. | 526,764 | ||||||||||||
1,257,000 | C C Land Holdings, Ltd. | 683,811 | ||||||||||||
930,000 | @ | Chaoda Modern Agriculture | 718,561 | |||||||||||
221,500 | China Mobile, Ltd. | 2,076,436 | ||||||||||||
549,840 | China Overseas Land & Investment, Ltd. | 1,185,405 | ||||||||||||
1,988,000 | CNOOC, Ltd. | 2,977,301 | ||||||||||||
226,000 | Shanghai Industrial Holdings, Ltd. | 1,061,691 | ||||||||||||
9,229,969 | ||||||||||||||
Hungary: 1.2% | ||||||||||||||
60,632 | @ | OTP Bank Nyrt | 1,704,941 | |||||||||||
1,704,941 | ||||||||||||||
India: 4.1% | ||||||||||||||
104,790 | Bharti Airtel, Ltd. | 647,754 | ||||||||||||
35,343 | Housing Development Finance Corp. | 1,977,671 | ||||||||||||
34,142 | ICICI Bank, Ltd. | 563,822 | ||||||||||||
37,070 | Larsen & Toubro, Ltd. | 1,223,639 | ||||||||||||
1,465 | Punjab National Bank, Ltd. | 26,317 | ||||||||||||
31,332 | Reliance Industries, Ltd. | 1,267,623 | ||||||||||||
5,706,826 | ||||||||||||||
Indonesia: 2.7% | ||||||||||||||
2,257,500 | Bank Mandiri | 1,083,272 | ||||||||||||
2,284,000 | Perusahaan Gas Negara PT | 849,840 | ||||||||||||
228,000 | PT Astra International Tbk | 733,544 | ||||||||||||
1,278,000 | Telekomunikasi Indonesia Tbk PT | 1,100,504 | ||||||||||||
3,767,160 | ||||||||||||||
Israel: 1.1% | ||||||||||||||
28,652 | Teva Pharmaceutical Industries, Ltd. ADR | 1,446,353 | ||||||||||||
1,446,353 | ||||||||||||||
Kazakhstan: 0.7% | ||||||||||||||
71,276 | Eurasian Natural Resources Corp. | 969,933 | ||||||||||||
969,933 | ||||||||||||||
Luxembourg: 0.5% | ||||||||||||||
26,500 | @,L | Ternium SA ADR | 665,945 | |||||||||||
665,945 | ||||||||||||||
Mauritius: 0.4% | ||||||||||||||
1,893,600 | @ | Golden Agri-Resources, Ltd. | 569,884 | |||||||||||
569,884 | ||||||||||||||
Mexico: 3.4% | ||||||||||||||
39,419 | America Movil SA de CV — Series L ADR | 1,739,560 | ||||||||||||
26,193 | @,L | Desarrollado ADR | 931,423 | |||||||||||
143,688 | @ | Empresas ICA S.A.B. de C.V. | 315,153 | |||||||||||
18,910 | Fomento Economico Mexicano SA de CV ADR | 823,912 | ||||||||||||
65,149 | @ | Grupo Financiero Banorte SA de CV | 208,220 | |||||||||||
192,397 | @ | Wal-Mart de Mexico SA de CV | 671,158 | |||||||||||
4,689,426 | ||||||||||||||
Poland: 1.8% | ||||||||||||||
44,900 | @ | Bank Pekao SA | 2,409,972 | |||||||||||
2,409,972 | ||||||||||||||
Russia: 7.8% | ||||||||||||||
60,574 | Mechel OAO ADR | 1,039,450 | ||||||||||||
87,400 | @ | MMC Norilsk Nickel ADR | 1,148,132 | |||||||||||
23,780 | Mobile Telesystems Finance SA ADR | 1,077,234 | ||||||||||||
99,501 | OAO Gazprom ADR | 2,386,239 | ||||||||||||
435,750 | @ | OAO Rosneft Oil Co. GDR | 3,313,367 | |||||||||||
805,400 | Sberbank RF | 1,784,649 | ||||||||||||
10,749,071 | ||||||||||||||
South Africa: 5.1% | ||||||||||||||
49,974 | Impala Platinum Holdings, Ltd. | 1,099,603 | ||||||||||||
115,000 | Imperial Holdings, Ltd. | 1,183,944 | ||||||||||||
83,000 | MTN Group, Ltd. | 1,235,807 |
See Accompanying Notes to Financial Statements
123
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
South Africa (continued) | ||||||||||||||
43,700 | Naspers, Ltd. | $ | 1,577,503 | |||||||||||
119,000 | Shoprite Holdings, Ltd. | 969,723 | ||||||||||||
75,018 | Standard Bank Group, Ltd. | 936,298 | ||||||||||||
7,002,878 | ||||||||||||||
South Korea: 9.5% | ||||||||||||||
16,080 | Doosan Heavy Industries and Construction Co., Ltd. | 862,933 | ||||||||||||
16,114 | GS Engineering & Construction Corp. | 1,413,072 | ||||||||||||
20,500 | @ | KB Financial Group, Inc. | 986,048 | |||||||||||
93,440 | @ | Kia Motors Corp. | 1,387,915 | |||||||||||
13,784 | LG Electronics, Inc. | 1,281,367 | ||||||||||||
3,850 | Posco | 1,595,547 | ||||||||||||
9,323 | Samsung Electronics Co., Ltd. | 5,609,958 | ||||||||||||
13,136,840 | ||||||||||||||
Taiwan: 10.0% | ||||||||||||||
465,000 | Acer, Inc. | 1,096,069 | ||||||||||||
1,018,000 | @ | Cathay Financial Holding Co., Ltd. | 1,745,735 | |||||||||||
1,740,000 | @ | Eva Airways Corp. | 652,679 | |||||||||||
868,000 | Far Eastern Textile Co., Ltd. | 1,023,561 | ||||||||||||
462,300 | HON HAI Precision Industry Co., Ltd. | 1,810,750 | ||||||||||||
165,818 | Hon Hai Precision Industry Co., Ltd. — GDR | 1,322,149 | ||||||||||||
97,644 | MediaTek, Inc. | 1,366,625 | ||||||||||||
263,000 | Taiwan Fertilizer Co., Ltd. | 816,479 | ||||||||||||
2,166,610 | Taiwan Semiconductor Manufacturing Co., Ltd. | 3,930,224 | ||||||||||||
13,764,271 | ||||||||||||||
Thailand: 0.6% | ||||||||||||||
125,000 | PTT PCL | 884,792 | ||||||||||||
884,792 | ||||||||||||||
Turkey: 2.7% | ||||||||||||||
192,724 | Haci Omer Sabanci Holding A/S | 704,599 | ||||||||||||
820,915 | Turkiye Garanti Bankasi A/S | 2,981,188 | ||||||||||||
3,685,787 | ||||||||||||||
United Kingdom: 1.9% | ||||||||||||||
101,355 | Antofagasta PLC | 1,277,012 | ||||||||||||
40,704 | Vedanta Resources PLC | 1,392,744 | ||||||||||||
2,669,756 | ||||||||||||||
Total Common Stock (Cost $96,150,339) | 126,259,759 | |||||||||||||
EXCHANGE-TRADED FUNDS: 3.1% | ||||||||||||||
Hong Kong: 1.0% | ||||||||||||||
790,400 | iShares FTSE/Xinhua A50 CHINA Index ETF | 1,456,338 | ||||||||||||
1,456,338 | ||||||||||||||
South Korea: 2.1% | ||||||||||||||
66,789 | iShares MSCI South Korea Index Fund | 2,863,912 | ||||||||||||
2,863,912 | ||||||||||||||
Total Exchange-Traded Funds (Cost $3,366,212) | 4,320,250 | |||||||||||||
PREFERRED STOCK: 1.2% | ||||||||||||||
Brazil: 1.2% | ||||||||||||||
107,000 | Gerdau SA | 1,612,653 | ||||||||||||
Total Preferred Stock (Cost $1,355,512) | 1,612,653 | |||||||||||||
Total Long-Term Investments (Cost $100,872,063) | 132,192,662 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
SHORT-TERM INVESTMENTS: 0.5% | ||||||||||||||
Securities Lending Collateralcc:0.5% | ||||||||||||||
$ | 629,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 629,000 | ||||||||||
161,615 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 129,292 | ||||||||||||
Total Short-Term Investments (Cost $790,615) | 758,292 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $101,662,678)* | 96.3 | % | $ | 132,950,954 | ||||||||||
Other Assets and Liabilities - Net | 3.7 | 5,047,535 | ||||||||||||
Net Assets | 100.0 | % | $ | 137,998,489 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $110,390,884. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 32,991,823 | ||
Gross Unrealized Depreciation | (10,431,753 | ) | ||
Net Unrealized Appreciation | $ | 22,560,070 | ||
See Accompanying Notes to Financial Statements
124
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Emerging Countries Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Agriculture | 0.9 | % | ||
Airlines | 0.5 | |||
Apparel | 0.8 | |||
Auto Manufacturers | 1.0 | |||
Banks | 16.0 | |||
Beverages | 1.2 | |||
Chemicals | 0.6 | |||
Coal | 2.1 | |||
Computers | 0.8 | |||
Diversified Financial Services | 2.9 | |||
Electrical Components & Equipment | 0.9 | |||
Electronics | 2.3 | |||
Engineering & Construction | 2.7 | |||
Food | 1.9 | |||
Gas | 1.0 | |||
Holding Companies — Diversified | 2.6 | |||
Home Builders | 1.2 | |||
Insurance | 2.5 | |||
Internet | 1.1 | |||
Iron/Steel | 5.3 | |||
Machinery — Diversified | 0.6 | |||
Media | 1.2 | |||
Mining | 8.2 | |||
Oil & Gas | 14.2 | |||
Oil & Gas Services | 0.9 | |||
Pharmaceuticals | 1.1 | |||
Real Estate | 2.2 | |||
Retail | 2.4 | |||
Semiconductors | 7.9 | |||
Telecommunications | 5.7 | |||
Other Long-Term Investments | 3.1 | |||
Short-Term Investments | 0.5 | |||
Other Assets and Liabilities — Net | 3.7 | |||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Bermuda | $ | 865,774 | $ | — | $ | — | $ | 865,774 | ||||||||
Brazil | 21,165,247 | 2,438,780 | — | 23,604,027 | ||||||||||||
Canada | 1,294,860 | — | — | 1,294,860 | ||||||||||||
China | 1,570,147 | 14,272,262 | — | 15,842,409 | ||||||||||||
Egypt | — | 1,598,885 | — | 1,598,885 | ||||||||||||
Hong Kong | — | 9,229,969 | — | 9,229,969 | ||||||||||||
Hungary | — | 1,704,941 | — | 1,704,941 | ||||||||||||
India | — | 5,706,826 | — | 5,706,826 | ||||||||||||
Indonesia | — | 3,767,160 | — | 3,767,160 | ||||||||||||
Israel | 1,446,353 | — | — | 1,446,353 | ||||||||||||
Kazakhstan | — | 969,933 | — | 969,933 | ||||||||||||
Luxembourg | 665,945 | — | — | 665,945 | ||||||||||||
Mauritius | — | 569,884 | — | 569,884 | ||||||||||||
Mexico | 4,689,426 | — | — | 4,689,426 | ||||||||||||
Poland | — | 2,409,972 | — | 2,409,972 | ||||||||||||
Russia | 2,116,684 | 8,632,387 | — | 10,749,071 | ||||||||||||
South Africa | — | 7,002,878 | — | 7,002,878 | ||||||||||||
South Korea | — | 13,136,840 | — | 13,136,840 | ||||||||||||
Taiwan | — | 13,764,271 | — | 13,764,271 | ||||||||||||
Thailand | — | 884,792 | — | 884,792 | ||||||||||||
Turkey | — | 3,685,787 | — | 3,685,787 | ||||||||||||
United Kingdom | — | 2,669,756 | — | 2,669,756 | ||||||||||||
Total Common Stock | 33,814,436 | 92,445,323 | — | 126,259,759 | ||||||||||||
Exchange-Traded Funds | 4,320,250 | — | — | 4,320,250 | ||||||||||||
Preferred Stock | — | 1,612,653 | — | 1,612,653 | ||||||||||||
Short-Term Investments | 629,000 | 129,292 | — | 758,292 | ||||||||||||
Total Investments, at value | $ | 38,763,686 | $ | 94,187,268 | $ | — | $ | 132,950,954 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
125
Table of Contents
PORTFOLIO OF INVESTMENTS
ING European Real Estate Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 23.6% | ||||||||||||||
Austria: 3.0% | ||||||||||||||
36,943 | @ | Immoeast Immobilien Anlagen AG | $ | 195,012 | ||||||||||
195,012 | ||||||||||||||
British Virgin Islands: 0.5% | ||||||||||||||
1,110 | @ | Eastern Property Holdings, Ltd. | 35,409 | |||||||||||
35,409 | ||||||||||||||
Germany: 1.4% | ||||||||||||||
2,579 | Deutsche Euroshop AG | 88,026 | ||||||||||||
88,026 | ||||||||||||||
Greece: 0.2% | ||||||||||||||
2,030 | @ | Babis Vovos International Technical Co. | 15,085 | |||||||||||
15,085 | ||||||||||||||
Norway: 2.7% | ||||||||||||||
92,500 | @ | Norwegian Property ASA | 175,437 | |||||||||||
175,437 | ||||||||||||||
Sweden: 3.5% | ||||||||||||||
21,507 | Castellum AB | 200,186 | ||||||||||||
1,455 | Wihlborgs Fastigheter AB | 27,299 | ||||||||||||
227,485 | ||||||||||||||
Switzerland: 3.6% | ||||||||||||||
4,207 | @ | Swiss Prime Site AG | 231,578 | |||||||||||
231,578 | ||||||||||||||
United Kingdom: 8.7% | ||||||||||||||
23,425 | @ | Atrium European Real Estate, Ltd. | 153,098 | |||||||||||
20,900 | Grainger PLC | 98,215 | ||||||||||||
23,435 | Helical Bar PLC | 127,090 | ||||||||||||
19,550 | @ | LXB Retail Properties PLC | 32,808 | |||||||||||
52,067 | Safestore Holdings, Ltd. | 120,957 | ||||||||||||
7,460 | @ | Unite Group PLC | 32,471 | |||||||||||
564,639 | ||||||||||||||
Total Common Stock (Cost $1,428,613) | 1,532,671 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 72.3% | ||||||||||||||
Belgium:2.1% | ||||||||||||||
290 | Cofinimmo | 41,791 | ||||||||||||
1,831 | Warehouses De Pauw SCA | 92,453 | ||||||||||||
134,244 | ||||||||||||||
France: 31.1% | ||||||||||||||
314 | Fonciere Des Regions | 34,610 | ||||||||||||
1,738 | Gecina SA | 184,891 | ||||||||||||
1,073 | ICADE | 112,965 | ||||||||||||
1,839 | Klepierre | 76,227 | ||||||||||||
4,542 | Mercialys | 183,051 | ||||||||||||
1,450 | @ | Societe de la Tour Eiffel | 108,622 | |||||||||||
1,590 | Societe Fonciere Lyonnaise SA | 74,746 | ||||||||||||
5,630 | S | Unibail | 1,246,738 | |||||||||||
2,021,850 | ||||||||||||||
Germany: 2.1% | ||||||||||||||
12,537 | Alstria Office AG | 137,689 | ||||||||||||
137,689 | ||||||||||||||
Netherlands: 9.8% | ||||||||||||||
5,277 | Corio NV | 357,825 | ||||||||||||
3,500 | @,S | Eurocommercial Properties NV | 151,628 | |||||||||||
1,577 | Vastned Retail NV | 105,166 | ||||||||||||
252 | Wereldhave NV | 24,602 | ||||||||||||
639,221 | ||||||||||||||
United Kingdom: 27.2% | ||||||||||||||
37,875 | British Land Co. PLC | 292,532 | ||||||||||||
5,290 | Derwent Valley Holdings PLC | 107,754 | ||||||||||||
23,753 | Great Portland Estates PLC | 96,002 | ||||||||||||
43,075 | Hammerson PLC | 285,716 | ||||||||||||
40,462 | @ | Hansteen Holdings PLC | 58,585 | |||||||||||
55,479 | Land Securities Group PLC | 600,289 | ||||||||||||
19,411 | Liberty International PLC | 143,286 | ||||||||||||
18,296 | Segro PLC | 105,433 | ||||||||||||
2,216 | Shaftesbury PLC | 13,651 | ||||||||||||
22,006 | Town Centre Securities PLC | 63,386 | ||||||||||||
1,766,634 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $4,275,289) | 4,699,638 | |||||||||||||
MUTUAL FUNDS: 1.5% | ||||||||||||||
Luxembourg: 1.5% | ||||||||||||||
15,575 | Protogis European Properties | 100,475 | ||||||||||||
Total Mutual Funds (Cost $75,570) | 100,475 | |||||||||||||
Total Long-Term Investments (Cost $5,779,472) | 6,332,784 | |||||||||||||
SHORT-TERM INVESTMENTS: 0.6% | ||||||||||||||
Affiliated Mutual Fund: 0.6% | ||||||||||||||
36,147 | ING Institutional Prime Money Market Fund — Class I | 36,147 | ||||||||||||
Total Short-Term Investments (Cost $36,147) | 36,147 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $5,815,619)* | 98.0 | % | $ | 6,368,931 | ||||||||||
Other Assets and Liabilities - Net | 2.0 | 127,833 | ||||||||||||
Net Assets | 100.0 | % | $ | 6,496,764 | ||||||||||
@ | Non-income producing security | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
* | Cost for federal income tax purposes is $6,857,359. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 332,495 | ||
Gross Unrealized Depreciation | (820,923 | ) | ||
Net Unrealized Depreciation | $ | (488,428 | ) | |
Percentage of | ||||
Industry | Net Assets | |||
Closed-End Funds | 1.5 | % | ||
Diversified | 60.7 | |||
Engineering & Construction | 0.2 | |||
Office Property | 7.7 | |||
Operations/Development | 0.9 | |||
Real Estate | 21.5 | |||
Shopping Centers | 1.6 | |||
Storage/Warehousing | 1.9 | |||
Warehouse/Industrial | 1.4 | |||
Short-Term Investments | 0.6 | |||
Other Assets and Liabilities — Net | 2.0 | |||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
126
Table of Contents
PORTFOLIO OF INVESTMENTS
ING European Real Estate Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Austria | $ | — | $ | 195,012 | $ | — | $ | 195,012 | ||||||||
British Virgin Islands | 35,409 | — | — | 35,409 | ||||||||||||
Germany | — | 88,026 | — | 88,026 | ||||||||||||
Greece | — | 15,085 | — | 15,085 | ||||||||||||
Norway | — | 175,437 | — | 175,437 | ||||||||||||
Sweden | — | 227,485 | — | 227,485 | ||||||||||||
Switzerland | — | 231,578 | — | 231,578 | ||||||||||||
United Kingdom | 32,808 | 531,831 | — | 564,639 | ||||||||||||
Total Common Stock | 68,217 | 1,464,454 | — | 1,532,671 | ||||||||||||
Real Estate Investment Trusts | 63,386 | 4,636,252 | — | 4,699,638 | ||||||||||||
Mutual Funds | — | 100,475 | — | 100,475 | ||||||||||||
Short-Term Investments | 36,147 | — | — | 36,147 | ||||||||||||
Total Investments, at value | $ | 167,750 | $ | 6,201,181 | $ | — | $ | 6,368,931 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
127
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 96.8% | ||||||||||||||
Australia: 6.5% | ||||||||||||||
163,017 | @ | Alumina, Ltd. | $ | 239,225 | ||||||||||
45,129 | AMP, Ltd. | 237,789 | ||||||||||||
72,537 | @ | Asciano Group | 97,127 | |||||||||||
49,253 | Australia & New Zealand Banking Group, Ltd. | 1,004,570 | ||||||||||||
70,343 | BHP Billiton, Ltd. | 2,307,014 | ||||||||||||
90,923 | BlueScope Steel, Ltd. | 240,960 | ||||||||||||
11,026 | Boral, Ltd. | 56,240 | ||||||||||||
19,474 | Brambles, Ltd. | 122,771 | ||||||||||||
28,405 | Commonwealth Bank of Australia | 1,312,636 | ||||||||||||
11,965 | CSL, Ltd. | 335,949 | ||||||||||||
22,885 | @ | Fortescue Metals Group, Ltd. | 76,625 | |||||||||||
43,523 | Foster’s Group, Ltd. | 213,449 | ||||||||||||
44,401 | Insurance Australia Group | 149,360 | ||||||||||||
5,106 | Leighton Holdings, Ltd. | 162,145 | ||||||||||||
189,354 | Macquarie Airports Management, Ltd. | 481,654 | ||||||||||||
17,214 | @ | Macquarie Airports Management, Ltd. | 44,471 | |||||||||||
5,949 | @ | Macquarie Group, Ltd. | 260,541 | |||||||||||
60,029 | Macquarie Infrastructure Group | 76,818 | ||||||||||||
47,508 | National Australia Bank, Ltd. | 1,255,239 | ||||||||||||
14,080 | QBE Insurance Group, Ltd. | 283,554 | ||||||||||||
73,000 | @ | Rio Tinto, Ltd. | 4,046,444 | |||||||||||
22,263 | Suncorp-Metway, Ltd. | 174,138 | ||||||||||||
46,297 | Telstra Corp., Ltd. | 137,577 | ||||||||||||
17,850 | Toll Holdings, Ltd. | 135,305 | ||||||||||||
20,442 | Wesfarmers, Ltd. | 510,095 | ||||||||||||
53,624 | Westpac Banking Corp. | 1,253,331 | ||||||||||||
14,767 | Woodside Petroleum, Ltd. | 619,409 | ||||||||||||
15,668 | Woolworths, Ltd. | 401,036 | ||||||||||||
16,235,472 | ||||||||||||||
Austria: 0.8% | ||||||||||||||
281 | Andritz AG | 15,475 | ||||||||||||
6,372 | Erste Bank der Oesterreichischen Sparkassen AG | 256,173 | ||||||||||||
31,122 | OMV AG | 1,282,502 | ||||||||||||
1,801 | Raiffeisen International Bank Holding AG | 105,613 | ||||||||||||
10,285 | Telekom Austria AG | 168,479 | ||||||||||||
6,173 | Voestalpine AG | 211,079 | ||||||||||||
2,039,321 | ||||||||||||||
Belgium: 0.9% | ||||||||||||||
5,480 | Anheuser-Busch InBev NV | 257,287 | ||||||||||||
1,648 | Belgacom SA | 61,724 | ||||||||||||
17,077 | @ | Dexia | 141,943 | |||||||||||
288,444 | Fortis | 1,247,095 | ||||||||||||
13,310 | @ | KBC Groep NV | 569,759 | |||||||||||
2,277,808 | ||||||||||||||
Bermuda: 0.0% | ||||||||||||||
6,029 | @ | SeaDrill, Ltd. ADR | 125,202 | |||||||||||
125,202 | ||||||||||||||
Brazil: 0.9% | ||||||||||||||
3,356 | Banco do Brasil SA | 53,742 | ||||||||||||
10,534 | Cia Siderurgica Nacional SA | 347,964 | ||||||||||||
5,887 | @ | Perdigao SA | 141,928 | |||||||||||
64,220 | Vale SA ADR | 1,636,968 | ||||||||||||
2,180,602 | ||||||||||||||
Canada: 4.3% | ||||||||||||||
7,922 | Agrium, Inc. | 368,554 | ||||||||||||
15,057 | @ | Bank of Montreal | 696,598 | |||||||||||
19,579 | @ | Bank of Nova Scotia | 818,770 | |||||||||||
69,869 | @ | Bombardier, Inc. — Class B | 283,466 | |||||||||||
8,961 | Canadian Imperial Bank of Commerce | 513,453 | ||||||||||||
4,366 | @ | Canadian Oil Sands Trust | 117,739 | |||||||||||
7,703 | @ | Canadian Pacific Railway, Ltd. | 333,876 | |||||||||||
16,550 | EnCana Corp. | 917,703 | ||||||||||||
3,392 | Finning International, Inc. | 50,031 | ||||||||||||
2,075 | @ | IGM Financial, Inc. | 73,926 | |||||||||||
11,507 | @ | Ivanhoe Mines, Ltd. | 123,998 | |||||||||||
19,175 | @ | Manulife Financial Corp. | 359,736 | |||||||||||
2,667 | National Bank of Canada | 138,988 | ||||||||||||
8,696 | @ | Nexen, Inc. | 187,092 | |||||||||||
7,735 | Potash Corp. of Saskatchewan | 721,352 | ||||||||||||
6,312 | @ | Research In Motion, Ltd. | 370,704 | |||||||||||
21,440 | @ | Royal Bank of Canada | 1,085,820 | |||||||||||
3,224 | Shoppers Drug Mart Corp. | 128,090 | ||||||||||||
4,493 | @ | Sun Life Financial, Inc. | 124,278 | |||||||||||
38,873 | @ | Suncor Energy, Inc. | 1,290,438 | |||||||||||
52,447 | @ | Talisman Energy, Inc. | 894,757 | |||||||||||
17,678 | @ | Teck Cominco, Ltd. — Class B | 513,161 | |||||||||||
11,736 | @ | Toronto Dominion Bank | 668,986 | |||||||||||
10,781,516 | ||||||||||||||
China: 4.7% | ||||||||||||||
70,000 | @ | Aluminum Corp. of China, Ltd. | 76,256 | |||||||||||
70,000 | Angang New Steel Co., Ltd. | 129,033 | ||||||||||||
2,869,315 | Bank of China, Ltd. | 1,664,464 | ||||||||||||
581,000 | Bank of Communications Co., Ltd. | 694,693 | ||||||||||||
185,156 | @ | Beijing Capital International Airport Co., Ltd. | 124,515 | |||||||||||
116,000 | China Citic Bank | 86,831 | ||||||||||||
179,000 | China Coal Energy Co. — Class H | 249,027 | ||||||||||||
114,000 | China Communications Construction Co., Ltd. | 122,560 | ||||||||||||
3,359,860 | China Construction Bank | 2,896,642 | ||||||||||||
103,500 | China COSCO Holdings Co., Ltd. | 127,564 | ||||||||||||
27,000 | China Dongxiang Group Co. | 16,757 | ||||||||||||
179,551 | China Life Insurance Co., Ltd. | 825,546 | ||||||||||||
112,500 | China Merchants Bank Co., Ltd. | 287,813 | ||||||||||||
1,117,198 | China Petroleum & Chemical Corp. | 947,464 | ||||||||||||
26,000 | China Railway Construction Corp., Ltd. | 35,024 | ||||||||||||
44,500 | China Shenhua Energy Co., Ltd. | 199,632 | ||||||||||||
24,000 | China Shipping Development Co., Ltd. | 33,687 | ||||||||||||
282,792 | China Telecom Corp., Ltd. | 124,988 | ||||||||||||
105,000 | @ | Foxconn International Holdings, Ltd. | 92,219 | |||||||||||
18,000 | Huaneng Power International, Inc. | 11,490 | ||||||||||||
1,885,543 | Industrial and Commercial Bank of China, Ltd. | 1,500,166 | ||||||||||||
808,812 | PetroChina Co., Ltd. | 973,228 |
See Accompanying Notes to Financial Statements
128
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
China (continued) | ||||||||||||||
59,195 | Ping An Insurance Group Co. of China, Ltd. | $ | 518,778 | |||||||||||
4,000 | Shandong Weigao Group Medical Polymer Co., Ltd. | 14,219 | ||||||||||||
11,752,596 | ||||||||||||||
Czech Republic: 1.2% | ||||||||||||||
15,910 | S | Komercni Banka A/S | 3,119,964 | |||||||||||
3,119,964 | ||||||||||||||
Denmark: 0.7% | ||||||||||||||
54 | AP Moller — Maersk A/S — Class B | 368,714 | ||||||||||||
12,377 | @ | Danske Bank A/S | 284,258 | |||||||||||
1,458 | @ | Flsmidth & Co. A/S | 77,132 | |||||||||||
12,298 | Novo-Nordisk A/S | 764,028 | ||||||||||||
1,931 | @ | Vestas Wind Systems A/S | 135,434 | |||||||||||
1,629,566 | ||||||||||||||
Finland: 0.4% | ||||||||||||||
2,194 | Fortum OYJ | 51,929 | ||||||||||||
4,367 | Kesko OYJ | 145,330 | ||||||||||||
5,312 | Metso OYJ | 148,336 | ||||||||||||
13,340 | Neste Oil OYJ | 235,944 | ||||||||||||
15,743 | Nokia OYJ | 198,853 | ||||||||||||
2,247 | Nokian Renkaat OYJ | 47,947 | ||||||||||||
4,145 | Outokumpu OYJ | 68,540 | ||||||||||||
27,590 | @ | Stora Enso OYJ (Euro Denominated Security) | 208,828 | |||||||||||
1,105,707 | ||||||||||||||
France: 8.9% | ||||||||||||||
3,191 | Accor SA | 152,817 | ||||||||||||
9,902 | ADP | 751,607 | ||||||||||||
64,014 | @ | Alcatel SA | 239,729 | |||||||||||
4,154 | Alstom | 287,823 | ||||||||||||
46,490 | AXA SA | 1,156,214 | ||||||||||||
26,695 | BNP Paribas | 2,011,045 | ||||||||||||
5,241 | Bouygues SA | 246,810 | ||||||||||||
14,901 | Carrefour SA | 639,591 | ||||||||||||
676 | Casino Guichard Perrachon SA | 53,716 | ||||||||||||
12,245 | Cie de Saint-Gobain | 596,695 | ||||||||||||
2,327 | @ | Compagnie Generale de Geophysique SA | 46,087 | |||||||||||
2,974 | Compagnie Generale des Etablissements Michelin | 220,305 | ||||||||||||
61,876 | Credit Agricole SA | 1,185,244 | ||||||||||||
6,486 | Electricite de France | 361,501 | ||||||||||||
97 | Eramet SLN | 30,206 | �� | |||||||||||
45,219 | France Telecom SA | 1,120,470 | ||||||||||||
18,612 | @ | Gaz de France | 778,120 | |||||||||||
18,259 | Groupe Danone | 1,096,896 | ||||||||||||
7,537 | Lafarge SA | 611,777 | ||||||||||||
3,784 | L’Oreal SA | 386,901 | ||||||||||||
3,553 | @ | LVMH Moet Hennessy Louis Vuitton SA | 367,917 | |||||||||||
33,042 | @ | Natixis | 185,615 | |||||||||||
1,704 | Pernod-Ricard SA | 141,955 | ||||||||||||
8,817 | @ | Peugeot SA | 287,206 | |||||||||||
1,643 | PPR | 179,060 | ||||||||||||
9,191 | Publicis Groupe | 349,235 | ||||||||||||
13,218 | @ | Renault SA | 591,515 | |||||||||||
18,649 | Sanofi-Aventis | 1,367,011 | ||||||||||||
4,154 | Schneider Electric SA | 431,969 | ||||||||||||
23,140 | Societe Generale | 1,536,954 | ||||||||||||
44,946 | @,S | Total SA | 2,689,581 | |||||||||||
1,739 | Vallourec | 273,803 | ||||||||||||
9,392 | Veolia Environnement | 306,831 | ||||||||||||
23,790 | @ | Vinci SA | 1,241,553 | |||||||||||
11,927 | Vivendi | 330,883 | ||||||||||||
22,254,642 | ||||||||||||||
Germany: 7.6% | ||||||||||||||
8,108 | Adidas AG | 375,405 | ||||||||||||
11,015 | Allianz AG | 1,262,581 | ||||||||||||
9,329 | BASF AG | 499,381 | ||||||||||||
15,162 | Bayer AG | 1,051,945 | ||||||||||||
7,085 | Bayerische Motoren Werke AG | 346,586 | ||||||||||||
1,036 | Beiersdorf AG | 63,816 | ||||||||||||
2,948 | Celesio AG | 73,131 | ||||||||||||
15,885 | @ | Commerzbank AG | 165,446 | |||||||||||
30,520 | DaimlerChrysler AG | 1,482,447 | ||||||||||||
16,439 | Deutsche Bank AG | 1,194,316 | ||||||||||||
4,670 | Deutsche Boerse AG | 378,236 | ||||||||||||
29,751 | Deutsche Post AG | 503,309 | ||||||||||||
55,117 | Deutsche Telekom AG | 753,195 | ||||||||||||
32,300 | E.ON AG | 1,237,894 | ||||||||||||
60,088 | Fraport AG Frankfurt Airport Services Worldwide | 2,829,034 | ||||||||||||
3,802 | Fresenius AG | 189,405 | ||||||||||||
621 | Hamburger Hafen und Logistik AG | 24,195 | ||||||||||||
12,551 | HeidelbergCement AG | 750,736 | ||||||||||||
3,213 | Henkel KGaA | 124,156 | ||||||||||||
6,018 | K+S AG | 328,502 | ||||||||||||
6,956 | MAN AG | 572,803 | ||||||||||||
7,708 | Metro AG | 427,824 | ||||||||||||
4,315 | Muenchener Rueckversicherungs AG | 682,688 | ||||||||||||
6,418 | RWE AG | 562,941 | ||||||||||||
2,983 | Salzgitter AG | 268,172 | ||||||||||||
13,472 | SAP AG | 610,216 | ||||||||||||
22,035 | Siemens AG | 1,991,234 | ||||||||||||
3,806 | ThyssenKrupp AG | 122,598 | ||||||||||||
12,776 | @ | UkrTelecom GDR | 35,159 | |||||||||||
560 | Wacker Chemie AG | 80,457 | ||||||||||||
18,987,808 | ||||||||||||||
Greece: 0.5% | ||||||||||||||
27,270 | @ | Alpha Bank AE | 525,766 | |||||||||||
3,166 | Coca-Cola Hellenic Bottling Co. SA | 82,515 | ||||||||||||
16,084 | Hellenic Telecommunications Organization SA | 270,546 | ||||||||||||
10,185 | @ | National Bank of Greece SA | 372,367 | |||||||||||
1,251,194 | ||||||||||||||
Hong Kong: 2.6% | ||||||||||||||
2,000 | Beijing Enterprises Holdings, Ltd. | 11,972 | ||||||||||||
21,000 | Cheung Kong Holdings, Ltd. | 266,517 | ||||||||||||
103,000 | @ | China Mengniu Dairy Co., Ltd. | 288,595 | |||||||||||
79,461 | China Merchants Holdings International Co., Ltd. | 253,428 | ||||||||||||
126,866 | China Mobile, Ltd. | 1,189,296 | ||||||||||||
54,000 | China Overseas Land & Investment, Ltd. | 116,419 | ||||||||||||
10,000 | China Resources Enterprise | 33,498 | ||||||||||||
97,000 | China Resources Land, Ltd. | 234,154 | ||||||||||||
156,000 | China Unicom, Ltd. | 198,353 | ||||||||||||
321,000 | CNOOC, Ltd. | 480,741 | ||||||||||||
90,000 | Cnpc Hong Kong, Ltd. | 95,012 | ||||||||||||
92,000 | Cosco Pacific, Ltd. | 127,085 | ||||||||||||
510,000 | Denway Motors, Ltd. | 244,121 | ||||||||||||
39,400 | Esprit Holdings, Ltd. | 262,284 |
See Accompanying Notes to Financial Statements
129
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Hong Kong (continued) | ||||||||||||||
480,717 | @ | GOME Electrical Appliances Holdings, Ltd. | $ | 140,816 | ||||||||||
38,000 | Hang Lung Properties, Ltd. | 143,609 | ||||||||||||
36,000 | Henderson Land Development Co., Ltd. | 254,509 | ||||||||||||
20,400 | Hong Kong Exchanges and Clearing, Ltd. | 359,093 | ||||||||||||
103,823 | Hutchison Whampoa, Ltd. | 728,722 | ||||||||||||
486,000 | @ | Lenovo Group, Ltd. | 270,602 | |||||||||||
32,000 | Li & Fung, Ltd. | 133,087 | ||||||||||||
39,000 | MTR Corp. | 138,130 | ||||||||||||
59,000 | New World Development, Ltd. | 126,994 | ||||||||||||
19,000 | Sun Hung Kai Properties, Ltd. | 287,860 | ||||||||||||
11,500 | Swire Pacific, Ltd. | 140,144 | ||||||||||||
16,500 | Yue Yuen Industrial Holdings | 45,978 | ||||||||||||
6,571,019 | ||||||||||||||
Hungary: 0.7% | ||||||||||||||
59,802 | @,S | OTP Bank Nyrt | 1,681,602 | |||||||||||
1,681,602 | ||||||||||||||
India: 1.6% | ||||||||||||||
2,749 | Bharat Heavy Electricals | 128,565 | ||||||||||||
32,188 | Bharti Airtel, Ltd. | 198,968 | ||||||||||||
1,239 | HDFC Bank, Ltd. ADR | 137,046 | ||||||||||||
4,573 | Housing Development Finance Corp. | 255,889 | ||||||||||||
30,592 | ICICI Bank, Ltd. | 505,197 | ||||||||||||
7,611 | ICICI Bank, Ltd. ADR | 239,366 | ||||||||||||
5,186 | Infosys Technologies, Ltd. ADR | 238,556 | ||||||||||||
29,831 | ITC, Ltd. | 160,624 | ||||||||||||
15,156 | Larsen & Toubro, Ltd. | 500,283 | ||||||||||||
37,971 | Reliance Communication | 139,958 | ||||||||||||
11,727 | Reliance Industries, Ltd. | 474,448 | ||||||||||||
16,907 | State Bank of India, Ltd. | 780,100 | ||||||||||||
10,574 | Sterlite Industries India, Ltd. ADR | 166,752 | ||||||||||||
3,925,752 | ||||||||||||||
Indonesia: 0.1% | ||||||||||||||
220,116 | Telekomunikasi Indonesia Tbk PT | 189,545 | ||||||||||||
189,545 | ||||||||||||||
Ireland: 0.5% | ||||||||||||||
23,672 | @ | Allied Irish Banks PLC | 65,521 | |||||||||||
121,912 | @ | Bank of Ireland — Dublin Exchange | 305,798 | |||||||||||
32,879 | CRH PLC | 804,186 | ||||||||||||
1,175,505 | ||||||||||||||
Italy: 3.3% | ||||||||||||||
24,392 | Assicurazioni Generali S.p.A. | 614,172 | ||||||||||||
9,641 | @ | Autostrade S.p.A. | 227,976 | |||||||||||
127,505 | Banca Monte dei Paschi di Siena S.p.A. | 242,272 | ||||||||||||
32,219 | Banca Popolare di Milano Scrl | 239,721 | ||||||||||||
14,795 | @ | Banco Popolare Scarl | 128,526 | |||||||||||
8,962 | Buzzi Unicem S.p.A. | 150,356 | ||||||||||||
63,487 | @ | Enel S.p.A. | 377,767 | |||||||||||
63,902 | ENI S.p.A. | 1,582,646 | ||||||||||||
19,130 | @ | Fiat S.p.A | 284,802 | |||||||||||
4,814 | Fondiaria-Sai S.p.A. | 87,739 | ||||||||||||
216,389 | @ | Intesa Sanpaolo S.p.A. | 910,669 | |||||||||||
12,230 | Italcementi S.p.A. | 176,041 | ||||||||||||
13,583 | Mediaset S.p.A. | 88,203 | ||||||||||||
29,509 | Mediobanca S.p.A. | 376,404 | ||||||||||||
40,662 | Parmalat S.p.A | 112,695 | ||||||||||||
208,393 | Telecom Italia S.p.A. | 331,060 | ||||||||||||
683,566 | UniCredito Italiano S.p.A. | 2,290,086 | ||||||||||||
8,221,135 | ||||||||||||||
Japan: 11.0% | ||||||||||||||
3,800 | Aeon Mall Co., Ltd. | 79,626 | ||||||||||||
10,601 | Aisin Seiki Co., Ltd. | 269,537 | ||||||||||||
13,700 | Asahi Breweries, Ltd. | 242,198 | ||||||||||||
16,000 | Asahi Glass Co., Ltd. | 134,797 | ||||||||||||
39,500 | Bank of Yokohama, Ltd. | 193,962 | ||||||||||||
2,700 | Benesse Corp. | 119,051 | ||||||||||||
23,200 | Bridgestone Corp. | 382,585 | ||||||||||||
30,105 | S | Canon, Inc. | 1,135,044 | |||||||||||
29 | Central Japan Railway Co. | 193,206 | ||||||||||||
24,800 | Chiba Bank, Ltd. | 152,939 | ||||||||||||
3,100 | Daikin Industries, Ltd. | 105,077 | ||||||||||||
46,200 | Daiwa Securities Group, Inc. | 243,166 | ||||||||||||
18,188 | Denso Corp. | 496,955 | ||||||||||||
1,650 | Diamond Lease Co., Ltd. | 49,147 | ||||||||||||
6,000 | East Japan Railway Co. | 384,233 | ||||||||||||
4,600 | Eisai Co., Ltd. | 163,347 | ||||||||||||
1,600 | FamilyMart Co., Ltd. | 47,658 | ||||||||||||
9,400 | Fanuc, Ltd. | 780,775 | ||||||||||||
43,000 | Fujitsu, Ltd. | 253,218 | ||||||||||||
26,000 | Fukuoka Financial Group, Inc. | 95,066 | ||||||||||||
2,874 | Hitachi Construction Machinery Co., Ltd. | 66,982 | ||||||||||||
46,228 | S | Honda Motor Co., Ltd. | 1,427,830 | |||||||||||
9,600 | Hoya Corp. | 211,270 | ||||||||||||
97,000 | Itochu Corp. | 613,116 | ||||||||||||
3,886 | Japan Steel Works, Ltd. | 42,856 | ||||||||||||
11,800 | @ | JFE Holdings, Inc. | 384,383 | |||||||||||
30,000 | @ | Kawasaki Heavy Industries, Ltd. | 74,964 | |||||||||||
38 | KDDI Corp. | 201,684 | ||||||||||||
26,800 | Kirin Brewery Co., Ltd. | 437,459 | ||||||||||||
26,405 | Komatsu, Ltd. | 514,764 | ||||||||||||
7,000 | Konica Minolta Holdings, Inc. | 65,756 | ||||||||||||
24,319 | Kubota Corp. | 188,978 | ||||||||||||
1,569 | Kurita Water Industries, Ltd. | 47,986 | ||||||||||||
1,700 | Kyocera Corp. | 142,603 | ||||||||||||
1,200 | Lawson, Inc. | 53,649 | ||||||||||||
2,900 | Makita Corp. | 96,106 | ||||||||||||
63,384 | Matsushita Electric Industrial Co., Ltd. | 894,667 | ||||||||||||
60,000 | Mitsubishi Corp. | 1,272,021 | ||||||||||||
26,000 | @ | Mitsubishi Electric Corp. | 197,779 | |||||||||||
22,000 | Mitsubishi Estate Co., Ltd. | 332,308 | ||||||||||||
29,000 | Mitsubishi Heavy Industries, Ltd. | 102,546 | ||||||||||||
180,100 | Mitsubishi UFJ Financial Group, Inc. | 959,285 | ||||||||||||
97,100 | Mitsui & Co., Ltd. | 1,275,209 | ||||||||||||
20,500 | Mitsui Fudosan Co., Ltd. | 331,690 | ||||||||||||
14,000 | NGK Insulators, Ltd. | 314,020 | ||||||||||||
8,200 | Nidec Corp. | 692,348 | ||||||||||||
16,000 | Nikon Corp. | 298,202 | ||||||||||||
901 | Nintendo Co., Ltd. | 225,993 | ||||||||||||
73,000 | @ | Nippon Steel Corp. | 278,497 | |||||||||||
5,100 | Nippon Telegraph & Telephone Corp. | 210,438 | ||||||||||||
50,000 | @ | Nissan Motor Co., Ltd. | 361,807 | |||||||||||
93,300 | Nomura Holdings, Inc. | 657,599 | ||||||||||||
223 | NTT DoCoMo, Inc. | 323,409 | ||||||||||||
4,900 | Olympus Corp. | 152,945 | ||||||||||||
2,170 | ORIX Corp. | 140,171 | ||||||||||||
9,000 | @ | Resona Holdings, Inc. | 107,160 |
See Accompanying Notes to Financial Statements
130
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Japan (continued) | ||||||||||||||
15,000 | Ricoh Co., Ltd. | $ | 203,854 | |||||||||||
3,100 | Seven & I Holdings Co., Ltd. | 67,866 | ||||||||||||
2,600 | Shin-Etsu Chemical Co., Ltd. | 137,881 | ||||||||||||
7,000 | Shiseido Co., Ltd. | 127,800 | ||||||||||||
27,000 | Shizuoka Bank, Ltd. | 268,271 | ||||||||||||
700 | SMC Corp. | 79,943 | ||||||||||||
10,033 | Sony Corp. | 296,263 | ||||||||||||
2,600 | Stanley Electric Co., Ltd. | 50,909 | ||||||||||||
44,000 | Sumitomo Metal Industries, Ltd. | 112,411 | ||||||||||||
38,700 | Sumitomo Mitsui Financial Group, Inc. | 1,315,418 | ||||||||||||
16,000 | Sumitomo Realty & Development Co., Ltd. | 303,382 | ||||||||||||
75,900 | Sumitomo Trust & Banking Co., Ltd. | 395,439 | ||||||||||||
5,000 | Suruga Bank, Ltd. | 45,174 | ||||||||||||
26,200 | Suzuki Motor Corp. | 633,939 | ||||||||||||
4,500 | Takeda Pharmaceutical Co., Ltd. | 179,971 | ||||||||||||
6,300 | Tokio Marine Holdings, Inc. | 161,093 | ||||||||||||
4,900 | Tokyo Electric Power Co., Inc. | 120,447 | ||||||||||||
96,000 | @ | Toshiba Corp. | 548,673 | |||||||||||
69,800 | S | Toyota Motor Corp. | 2,755,491 | |||||||||||
3,520 | Uni-Charm Corp. | 337,337 | ||||||||||||
388 | @ | Yahoo! Japan Corp. | 118,926 | |||||||||||
27,480,555 | ||||||||||||||
�� | ||||||||||||||
Luxembourg: 0.6% | ||||||||||||||
36,343 | ArcelorMittal | 1,229,940 | ||||||||||||
11,499 | @ | Evraz Group SA GDR — Reg S | 278,611 | |||||||||||
1,508,551 | ||||||||||||||
Mexico: 1.2% | ||||||||||||||
26,764 | America Movil SA de CV — Series L ADR | 1,181,095 | ||||||||||||
44,323 | @ | Cemex SA de CV ADR | 460,073 | |||||||||||
260,013 | @ | Cemex SAB de C.V. | 269,982 | |||||||||||
6,384 | Fomento Economico Mexicano SA de CV ADR | 276,491 | ||||||||||||
57,628 | @ | Grupo Modelo SA | 261,566 | |||||||||||
37,123 | Grupo Televisa SA | 143,670 | ||||||||||||
21,859 | Grupo Televisa SA ADR | 423,190 | ||||||||||||
3,016,067 | ||||||||||||||
Netherlands: 3.9% | ||||||||||||||
58,664 | @ | Aegon NV | 416,951 | |||||||||||
1,558 | Boskalis Westminster | 54,683 | ||||||||||||
9,242 | European Aeronautic Defence and Space Co. NV | 173,061 | ||||||||||||
21,904 | Heineken NV | 968,254 | ||||||||||||
30,310 | Koninklijke Philips Electronics NV | 761,412 | ||||||||||||
3,155 | @ | Randstad Holdings NV | 119,708 | |||||||||||
35,546 | Reed Elsevier NV | 414,233 | ||||||||||||
89,784 | @ | Royal Dutch Shell PLC | 2,661,975 | |||||||||||
38,427 | @ | Royal Dutch Shell PLC — Class A | 1,134,505 | |||||||||||
83,546 | Royal KPN NV | 1,515,418 | ||||||||||||
6,410 | SBM Offshore NV | 122,755 | ||||||||||||
6,463 | TNT NV | 171,397 | ||||||||||||
37,763 | Unilever NV | 1,163,592 | ||||||||||||
5,700 | @ | X5 Retail Group N.V. GDR | 136,800 | |||||||||||
9,814,744 | ||||||||||||||
Norway: 1.4% | ||||||||||||||
22,912 | @ | DnB NOR ASA | 262,469 | |||||||||||
108,486 | @ | Norsk Hydro ASA | 711,014 | |||||||||||
50,106 | Orkla ASA | 463,217 | ||||||||||||
56,831 | Statoil ASA | 1,339,177 | ||||||||||||
21,721 | @ | Storebrand ASA | 147,604 | |||||||||||
20,945 | @ | Telenor ASA | 270,064 | |||||||||||
7,821 | Yara International ASA | 258,539 | ||||||||||||
3,452,084 | ||||||||||||||
Poland: 0.6% | ||||||||||||||
17,139 | @ | Bank Pekao SA | 919,922 | |||||||||||
38,894 | Powszechna Kasa Oszczednosci Bank Polski SA | 460,855 | ||||||||||||
1,380,777 | ||||||||||||||
Portugal: 0.1% | ||||||||||||||
37,885 | Banco Comercial Portugues SA | 54,008 | ||||||||||||
37,399 | Energias de Portugal SA | 165,399 | ||||||||||||
8,008 | Galp Energia SGPS SA | 134,879 | ||||||||||||
354,286 | ||||||||||||||
Russia: 4.3% | ||||||||||||||
34,450 | @ | Lukoil-Spon ADR | 1,998,502 | |||||||||||
14,742 | Mechel OAO ADR | 252,973 | ||||||||||||
72,241 | @ | MMC Norilsk Nickel ADR | 948,995 | |||||||||||
4,176 | Mobile Telesystems Finance SA ADR | 189,173 | ||||||||||||
5,300 | Novatek OAO GDR | 266,067 | ||||||||||||
87,050 | OAO Gazprom ADR | 2,087,638 | ||||||||||||
232,150 | @ | OAO Rosneft Oil Co. GDR | 1,765,228 | |||||||||||
1,129,138 | Sberbank RF | 2,502,005 | ||||||||||||
5,507 | @ | Severstal GDR | 39,724 | |||||||||||
24,745 | @,# | Sistema-Hals GDR | 40,829 | |||||||||||
3,598 | @ | Uralkali GDR | 80,986 | |||||||||||
7,333 | @ | Vimpel-Communications OAO ADR | 131,481 | |||||||||||
100,959 | VTB Bank OJSC GDR | 401,846 | ||||||||||||
10,705,447 | ||||||||||||||
Singapore: 0.3% | ||||||||||||||
20,000 | Keppel Corp., Ltd. | 114,942 | ||||||||||||
12,000 | Oversea-Chinese Banking Corp. | 64,667 | ||||||||||||
191,000 | Singapore Telecommunications, Ltd. | 396,083 | ||||||||||||
11,000 | United Overseas Bank, Ltd. | 131,855 | ||||||||||||
32,000 | Wilmar International, Ltd. | 141,087 | ||||||||||||
848,634 | ||||||||||||||
South Africa: 0.3% | ||||||||||||||
10,349 | Impala Platinum Holdings, Ltd. | 227,714 | ||||||||||||
15,855 | MTN Group, Ltd. | 236,069 | ||||||||||||
10,772 | Sasol, Ltd. | 403,576 | ||||||||||||
867,359 | ||||||||||||||
South Korea: 2.7% | ||||||||||||||
1,377 | Doosan Heavy Industries and Construction Co., Ltd. | 73,897 | ||||||||||||
4,710 | Hana Financial Group, Inc. | 139,687 | ||||||||||||
4,820 | @ | Hynix Semiconductor, Inc. | 71,560 | |||||||||||
3,305 | Hyundai Heavy Industries | 452,696 | ||||||||||||
9,796 | Hyundai Motor Co. | 888,541 | ||||||||||||
18,393 | @ | KB Financial Group, Inc. | 884,701 | |||||||||||
9,240 | LG Display Co., Ltd. | 221,108 | ||||||||||||
2,357 | LG Electronics, Inc. | 219,108 | ||||||||||||
1,343 | @ | NHN Corp. | 198,079 | |||||||||||
3,313 | Posco | 1,372,999 |
See Accompanying Notes to Financial Statements
131
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
South Korea (continued) | ||||||||||||||
1,725 | Samsung Electronics Co., Ltd. | $ | 1,037,990 | |||||||||||
17,070 | @ | Shinhan Financial Group, Ltd. | 647,652 | |||||||||||
3,225 | SK Telecom Co., Ltd. | 491,163 | ||||||||||||
3,890 | @ | Woori Finance Holdings Co., Ltd. | 52,360 | |||||||||||
6,751,541 | ||||||||||||||
Spain: 3.2% | ||||||||||||||
72,362 | Banco Bilbao Vizcaya Argentaria SA | 1,293,471 | ||||||||||||
17,364 | Banco Popular Espanol SA | 154,672 | ||||||||||||
157,150 | Banco Santander SA | 2,528,898 | ||||||||||||
191,696 | @,S | Banco Santander SA | 33,853 | |||||||||||
4,671 | Cintra Concesiones DE Infrae | 48,057 | ||||||||||||
1,179 | Fomento de Construcciones y Contratas SA | 47,960 | ||||||||||||
3,626 | Gamesa Corp. Tecnologica SA | 66,258 | ||||||||||||
5,191 | Grupo Ferrovial | 215,043 | ||||||||||||
20,291 | Iberdrola SA | 183,808 | ||||||||||||
4,676 | Inditex SA | 274,477 | ||||||||||||
9,857 | Repsol YPF SA | 262,406 | ||||||||||||
99,646 | Telefonica SA | 2,782,763 | ||||||||||||
7,891,666 | ||||||||||||||
Sweden: 1.1% | ||||||||||||||
19,073 | Atlas Copco AB — Class A | 255,751 | ||||||||||||
1,542 | Autoliv, Inc. | 52,341 | ||||||||||||
4,710 | Hennes & Mauritz AB | 267,536 | ||||||||||||
49,872 | Sandvik AB | 550,904 | ||||||||||||
7,609 | @ | Skandinaviska Enskilda Banken AB | 46,089 | |||||||||||
25,970 | SKF AB — B Shares | 411,235 | ||||||||||||
31,585 | Svenska Cellulosa AB — B Shares | 434,011 | ||||||||||||
21,030 | @ | Swedbank AB | 181,164 | |||||||||||
5,714 | Swedish Match AB | 117,272 | ||||||||||||
21,076 | TeliaSonera AB | 139,690 | ||||||||||||
42,422 | Volvo AB | 401,750 | ||||||||||||
2,857,743 | ||||||||||||||
Switzerland: 6.7% | ||||||||||||||
53,753 | @ | ABB, Ltd. | 999,879 | |||||||||||
25,163 | Credit Suisse Group | 1,345,143 | ||||||||||||
1,530 | Flughafen Zuerich AG | 445,399 | ||||||||||||
6,110 | @ | Holcim, Ltd. | 388,870 | |||||||||||
2,888 | @ | Logitech International SA | 49,298 | |||||||||||
69,360 | Nestle SA | 3,225,349 | ||||||||||||
4,267 | Nobel Biocare Holding AG | 121,058 | ||||||||||||
41,763 | Novartis AG | 2,174,773 | ||||||||||||
15,175 | Roche Holding AG — Genusschein | 2,430,473 | ||||||||||||
872 | Swatch Group AG — BR | 203,609 | ||||||||||||
10,355 | Swiss Reinsurance | 421,662 | ||||||||||||
810 | Swisscom AG | 292,344 | ||||||||||||
1,802 | Syngenta AG | 426,680 | ||||||||||||
91,562 | @ | UBS AG — Reg | 1,526,773 | |||||||||||
154,366 | @ | Xstrata PLC | 2,223,420 | |||||||||||
2,401 | Zurich Financial Services AG | 549,811 | ||||||||||||
16,824,541 | ||||||||||||||
Taiwan: 0.5% | ||||||||||||||
11,325 | L | AU Optronics Corp. ADR | 100,000 | |||||||||||
8,715 | Chunghwa Telecom Co., Ltd. ADR | 151,467 | ||||||||||||
99,370 | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 947,990 | ||||||||||||
39,971 | @,L | United Microelectron ADR | 131,505 | |||||||||||
1,330,962 | ||||||||||||||
Ukraine: 0.5% | ||||||||||||||
5,090,724 | @ | JSCB Ukrsotsbank | 224,047 | |||||||||||
3,938,839 | @ | Raiffeisen Bank Aval | 133,102 | |||||||||||
11,482 | @ | Ukrnafta Oil Co. ADR | 242,413 | |||||||||||
10,545,713 | @ | UkrTelecom | 626,271 | |||||||||||
1,225,833 | ||||||||||||||
United Kingdom: 12.2% | ||||||||||||||
55,617 | @ | Anglo American PLC | 2,012,395 | |||||||||||
14,237 | AstraZeneca PLC | 639,122 | ||||||||||||
52,095 | Aviva PLC | 325,759 | ||||||||||||
268,826 | @ | Barclays PLC | 1,408,939 | |||||||||||
20,059 | BG Group PLC | 345,282 | ||||||||||||
63,651 | BHP Billiton PLC | 1,715,074 | ||||||||||||
278,053 | BP PLC | 2,605,433 | ||||||||||||
13,040 | British American Tobacco PLC | 415,533 | ||||||||||||
91,534 | BT Group PLC | 196,153 | ||||||||||||
48,870 | Cadbury PLC | 617,845 | ||||||||||||
3,131 | @ | Carnival PLC | 97,065 | |||||||||||
78,879 | S | Diageo PLC | 1,284,786 | |||||||||||
117,494 | Friends Provident Group PLC | 156,649 | ||||||||||||
44,214 | @ | GKN PLC | 77,451 | |||||||||||
105,932 | GlaxoSmithKline PLC | 2,172,954 | ||||||||||||
287,593 | HSBC Holdings PLC | 3,177,942 | ||||||||||||
72,000 | HSBC Holdings PLC — Hong Kong | 795,079 | ||||||||||||
13,691 | Imperial Tobacco Group PLC | 403,466 | ||||||||||||
33,767 | Kingfisher PLC | 123,422 | ||||||||||||
146,043 | Legal & General Group PLC | 187,394 | ||||||||||||
549,512 | @ | Lloyds TSB Group PLC | 774,796 | |||||||||||
6,454 | @ | Lonmin PLC | 154,395 | |||||||||||
45,395 | Marks & Spencer Group PLC | 254,251 | ||||||||||||
170,878 | @ | Old Mutual PLC | 296,579 | |||||||||||
46,940 | Prudential PLC | 426,375 | ||||||||||||
67,129 | Rio Tinto PLC | 2,967,767 | ||||||||||||
21,784 | @ | Rolls-Royce Group PLC | 160,653 | |||||||||||
1,307,040 | @,I | Rolls-Royce Group PLC — C Shares | 2,145 | |||||||||||
533,264 | @ | Royal Bank of Scotland Group PLC | 363,782 | |||||||||||
42,022 | Standard Chartered PLC | 1,030,886 | ||||||||||||
231,892 | Tesco PLC | 1,546,188 | ||||||||||||
860 | Vedanta Resources PLC | 29,426 | ||||||||||||
1,183,064 | S | Vodafone Group PLC | 2,607,277 | |||||||||||
748 | Whitbread PLC | 15,561 | ||||||||||||
7,832 | @ | Wolseley PLC | 158,426 | |||||||||||
103,413 | WPP PLC | 926,778 | ||||||||||||
30,473,028 | ||||||||||||||
Total Common Stock (Cost $200,283,205) | 242,289,774 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 0.2% | ||||||||||||||
Australia:0.2% | ||||||||||||||
49,603 | Westfield Group | 537,401 | ||||||||||||
537,401 | ||||||||||||||
See Accompanying Notes to Financial Statements
132
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Japan: 0.0% | ||||||||||||||
9 | @ | Nippon Building Fund, Inc. | $ | 73,773 | ||||||||||
73,773 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $538,293) | 611,174 | |||||||||||||
EXCHANGE-TRADED FUNDS: 2.2% | ||||||||||||||
Taiwan: 2.2% | ||||||||||||||
465,468 | iShares MSCI Taiwan Index Fund | 5,404,083 | ||||||||||||
Total Exchange-Traded Funds (Cost $4,641,104) | 5,404,083 | |||||||||||||
PREFERRED STOCK: 1.4% | ||||||||||||||
Brazil: 1.3% | ||||||||||||||
17,206 | Banco Bradesco S.A. | 336,580 | ||||||||||||
23,347 | @ | Banco Itau Holding Financeira SA | 444,118 | |||||||||||
1,039 | @ | Centrais Eletricas Brasileiras SA | 13,212 | |||||||||||
724 | Cia Brasileira de Distribuicao Grupo Pao de Acucar | 21,852 | ||||||||||||
34,690 | Gerdau SA | 522,831 | ||||||||||||
66,339 | Petroleo Brasileiro SA | 1,315,031 | ||||||||||||
18,601 | Usinas Siderurgicas de Minas Gerais SA | 485,721 | ||||||||||||
6,040 | Vivo Participacoes SA | 147,023 | ||||||||||||
3,286,368 | ||||||||||||||
Germany: 0.1% | ||||||||||||||
1,949 | Porsche AG | 146,620 | ||||||||||||
1,671 | Volkswagen AG | 165,076 | ||||||||||||
311,696 | ||||||||||||||
Total Preferred Stock (Cost $2,939,332) | 3,598,064 | |||||||||||||
RIGHTS: 0.0% | ||||||||||||||
Poland: 0.0% | ||||||||||||||
9,723 | S | Powszechna Kasa Oszczednosci Bank Polski SA | 116,622 | |||||||||||
Total Rights (Cost $71,820) | 116,622 | |||||||||||||
WARRANTS: 0.0% | ||||||||||||||
Italy: 0.0% | ||||||||||||||
11,204 | I | Mediobanca S.p.A. | 2,432 | |||||||||||
Total Warrants (Cost $381) | 2,432 | |||||||||||||
Total Long-Term Investments (Cost $208,474,135) | 252,022,149 | |||||||||||||
SHORT-TERM INVESTMENTS: 0.2% | ||||||||||||||
Affiliated Mutual Fund: 0.1% | ||||||||||||||
272,747 | ING Institutional Prime Money Market Fund — Class I | 272,747 | ||||||||||||
Total Mutual Fund (Cost $272,747) | 272,747 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Securities Lending CollateralCC: 0.1% | ||||||||||||||
$ | 79,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 79,000 | ||||||||||
173,707 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 138,966 | ||||||||||||
Total Securities Lending Collateral (Cost $252,707) | 217,966 | |||||||||||||
Total Short-Term Investments (Cost $525,454) | 490,713 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $208,999,589)* | 100.8 | % | $ | 252,512,862 | ||||||||||
Other Assets and Liabilities - Net | (0.8 | ) | (2,084,989 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 250,427,873 | ||||||||||
@ | 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. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
I | Illiquid security | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $216,558,271. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 51,670,329 | ||
Gross Unrealized Depreciation | (15,715,738 | ) | ||
Net Unrealized Appreciation | $ | 35,954,591 | ||
Percentage of | ||||
Industry | Net Assets | |||
Advertising | 0.1 | % | ||
Aerospace/Defense | 0.1 | |||
Agriculture | 0.5 | |||
Apparel | 0.2 | |||
Auto Manufacturers | 4.0 | |||
Auto Parts & Equipment | 0.6 | |||
Banks | 24.2 | |||
Beverages | 1.7 | |||
Biotechnology | 0.1 | |||
Building Materials | 1.8 | |||
Chemicals | 1.6 | |||
Coal | 0.2 | |||
Commercial Services | 0.4 | |||
Computers | 0.5 | |||
Cosmetics/Personal Care | 0.4 | |||
Distribution/Wholesale | 1.4 | |||
Diversified Financial Services | 1.8 |
See Accompanying Notes to Financial Statements
133
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Electric | 1.5 | |||
Electrical Components & Equipment | 0.5 | |||
Electronics | 1.2 | |||
Engineering & Construction | 3.3 | |||
Environmental Control | 0.0 | |||
Food | 4.2 | |||
Forest Products & Paper | 0.3 | |||
Gas | 0.0 | |||
Hand/Machine Tools | 0.3 | |||
Healthcare — Products | 0.1 | |||
Holding Companies — Diversified | 0.7 | |||
Home Furnishings | 0.5 | |||
Household Products/Wares | 0.1 | |||
Insurance | 3.8 | |||
Internet | 0.1 | |||
Iron/Steel | 2.6 | |||
Leisure Time | 0.0 | |||
Lodging | 0.1 | |||
Machinery — Construction & Mining | 0.3 | |||
Machinery — Diversified | 0.9 | |||
Media | 0.9 | |||
Metal Fabricate/Hardware | 0.3 | |||
Mining | 8.0 | |||
Miscellaneous Manufacturing | 1.1 | |||
Office Property | 0.0 | |||
Office/Business Equipment | 0.5 | |||
Oil & Gas | 11.1 | |||
Oil & Gas Services | 0.7 | |||
Pharmaceuticals | 4.0 | |||
Real Estate | 1.0 | |||
Retail | 1.0 | |||
Semiconductors | 0.9 | |||
Shipbuilding | 0.2 | |||
Shopping Centers | 0.2 | |||
Software | 0.2 | |||
Telecommunications | 7.0 | |||
Toys/Games/Hobbies | 0.1 | |||
Transportation | 1.0 | |||
Water | 0.1 | |||
Other Long-Term Investments | 2.2 | |||
Short-Term Investments | 0.2 | |||
Other Assets and Liabilities — Net | (0.8 | ) | ||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | 44,471 | $ | 16,191,001 | $ | — | $ | 16,235,472 | ||||||||
Austria | — | 2,039,321 | — | 2,039,321 | ||||||||||||
Belgium | — | 2,277,808 | — | 2,277,808 | ||||||||||||
Bermuda | — | 125,202 | — | 125,202 | ||||||||||||
Brazil | 2,180,602 | — | — | 2,180,602 | ||||||||||||
Canada | 10,781,516 | — | — | 10,781,516 | ||||||||||||
China | 66,000 | 11,686,596 | — | 11,752,596 | ||||||||||||
Czech Republic | — | 3,119,964 | — | 3,119,964 | ||||||||||||
Denmark | — | 1,629,566 | — | 1,629,566 | ||||||||||||
Finland | — | 1,105,707 | — | 1,105,707 | ||||||||||||
France | — | 22,254,642 | — | 22,254,642 | ||||||||||||
Germany | 35,159 | 18,952,649 | — | 18,987,808 | ||||||||||||
Greece | — | 1,251,194 | — | 1,251,194 | ||||||||||||
Hong Kong | — | 6,571,019 | — | 6,571,019 | ||||||||||||
Hungary | — | 1,681,602 | — | 1,681,602 | ||||||||||||
India | 781,720 | 3,144,032 | — | 3,925,752 | ||||||||||||
Indonesia | — | 189,545 | — | 189,545 | ||||||||||||
Ireland | — | 1,175,505 | — | 1,175,505 | ||||||||||||
Italy | — | 8,221,135 | — | 8,221,135 | ||||||||||||
Japan | — | 27,480,555 | — | 27,480,555 | ||||||||||||
Luxembourg | — | 1,508,551 | — | 1,508,551 | ||||||||||||
Mexico | 3,016,067 | — | — | 3,016,067 | ||||||||||||
Netherlands | 136,800 | 9,677,944 | — | 9,814,744 | ||||||||||||
Norway | — | 3,452,084 | — | 3,452,084 | ||||||||||||
Poland | — | 1,380,777 | — | 1,380,777 | ||||||||||||
Portugal | — | 354,286 | — | 354,286 | ||||||||||||
Russia | 614,456 | 10,090,991 | — | 10,705,447 | ||||||||||||
Singapore | — | 848,634 | — | 848,634 | ||||||||||||
South Africa | — | 867,359 | — | 867,359 | ||||||||||||
South Korea | — | 6,751,541 | — | 6,751,541 | ||||||||||||
Spain | 33,853 | 7,857,813 | — | 7,891,666 | ||||||||||||
Sweden | — | 2,857,743 | — | 2,857,743 | ||||||||||||
Switzerland | — | 16,824,541 | — | 16,824,541 | ||||||||||||
Taiwan | 1,330,962 | — | — | 1,330,962 | ||||||||||||
Ukraine | 133,102 | 1,092,731 | — | 1,225,833 | ||||||||||||
United Kingdom | — | 30,473,028 | — | 30,473,028 | ||||||||||||
Total Common Stock | 19,154,708 | 223,135,066 | — | 242,289,774 | ||||||||||||
Real Estate Investment Trusts | — | 611,174 | — | 611,174 | ||||||||||||
Exchange-Traded Funds | 5,404,083 | — | — | 5,404,083 | ||||||||||||
Preferred Stock | 626,205 | 2,971,859 | — | 3,598,064 | ||||||||||||
Rights | — | 116,622 | — | 116,622 | ||||||||||||
Warrants | — | 2,432 | — | 2,432 | ||||||||||||
Short-Term Investments | 351,747 | 138,966 | — | 490,713 | ||||||||||||
Total Investments, at value | $ | 25,536,743 | $ | 226,976,119 | $ | — | $ | 252,512,862 | ||||||||
�� | ||||||||||||||||
Other Financial Instruments+: | ||||||||||||||||
Forward foreign currency contracts | — | 149,503 | — | 149,503 | ||||||||||||
Total Assets | $ | 25,536,743 | $ | 227,125,622 | $ | — | $ | 252,662,365 | ||||||||
Liabilities Table | ||||||||||||||||
Other Financial Instruments+: | ||||||||||||||||
Forward foreign currency contracts | $ | — | $ | (680,938 | ) | $ | — | $ | (680,938 | ) | ||||||
Total Liabilities | $ | — | $ | (680,938 | ) | $ | — | $ | (680,938 | ) | ||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended October 31, 2009:
Change In | ||||||||||||||||||||||||||||||||||||||||||||
Beginning | Accrued | Unrealized | Transfers | Transfers | Ending | |||||||||||||||||||||||||||||||||||||||
Balance | Discounts/ | Total Realized | Appreciation/ | Into | Out of | Balance | ||||||||||||||||||||||||||||||||||||||
at 10/31/2008 | Purchases | Issuances | Settlements | Sales | (Premiums) | Gain/(Loss) | (Depreciation) | Level 3 | Level 3 | at 10/31/09 | ||||||||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | $ | 58,849 | $ | — | $ | — | $ | — | $ | (119,591 | ) | $ | — | $ | (268,980 | ) | $ | 329,722 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Total Investments, at value | $ | 58,849 | $ | — | $ | — | $ | — | $ | (119,591 | ) | $ | — | $ | (268,980 | ) | $ | 329,722 | $ | — | $ | — | $ | — | ||||||||||||||||||||
See Accompanying Notes to Financial Statements
134
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Foreign Fund
as of October 31, 2009 (continued)
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
+ | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, futures, swaps, and written options. |
Forward foreign currency contracts and futures are reported at their unrealized gain/loss at measurement date which represents the amount due to/from the Fund. Swaps and written options are reported at their market value at measurement date.
Transfers into Level 3 represents either the beginning balance (for transfer in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period.
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
At October 31, 2009 the following forward foreign currency contracts were outstanding for the ING Foreign Fund:
Unrealized | ||||||||||||||||||||
Settlement | In Exchange | Appreciation | ||||||||||||||||||
Currency | Buy/Sell | Date | For | Value | (Depreciation) | |||||||||||||||
USD | ||||||||||||||||||||
Brazilian Real | ||||||||||||||||||||
BRL 1,178,426 | BUY | 11/4/09 | 674,929 | 668,401 | $ | (6,528 | ) | |||||||||||||
Canadian Dollar | ||||||||||||||||||||
CAD 3,946,921 | BUY | 12/16/09 | 3,667,239 | 3,647,736 | (19,503 | ) | ||||||||||||||
Japanese Yen | ||||||||||||||||||||
JPY 449,887,396 | BUY | 12/16/09 | 4,971,818 | 4,999,267 | 27,449 | |||||||||||||||
Polish Zloty | ||||||||||||||||||||
PLN 12,744,984 | BUY | 11/19/09 | 4,714,975 | 4,399,432 | (315,543 | ) | ||||||||||||||
$ | (314,125 | ) | ||||||||||||||||||
Brazilian Real | ||||||||||||||||||||
BRL 1,178,426 | SELL | 11/4/09 | 681,340 | 668,401 | $ | 12,939 | ||||||||||||||
Czech Koruna | ||||||||||||||||||||
CZK 46,318,818 | SELL | 12/16/09 | 2,675,455 | 2,566,340 | 109,115 | |||||||||||||||
Polish Zloty | ||||||||||||||||||||
PLN 3,070,417 | SELL | 11/19/09 | 973,885 | 1,059,875 | (85,990 | ) | ||||||||||||||
Polish Zloty | ||||||||||||||||||||
PLN 9,674,567 | SELL | 11/19/09 | 3,086,183 | 3,339,557 | (253,374 | ) | ||||||||||||||
$ | (217,310 | ) | ||||||||||||||||||
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2009 was as follows:
Derivatives not accounted for | ||||||
as hedging instruments | Location on Statement | |||||
under FASB ASC 815 | of Assets and Liabilities | Fair Value | ||||
Asset Derivatives | ||||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | $ | 149,503 | |||
Total Asset Derivatives | $ | 149,503 | ||||
Liability Derivatives | ||||||
Foreign exchange contracts | Unrealized depreciation on forward foreign currency contracts | $ | 680,938 | |||
Total Liability Derivatives | $ | 680,938 | ||||
The effect of derivative instruments on the Fund’s Statement of Operations for the year ended October 31, 2009 was as follows:
Amount of Realized Gain or (Loss) | ||||
on Derivatives Recognized in Income | ||||
Derivatives not | Forward | |||
accounted for as | Foreign | |||
hedging instruments | Currency | |||
under FASB ASC 815 | Contracts | |||
Foreign exchange contracts | $ | 8,830,331 | ||
Total | $ | 8,830,331 | ||
Change in Unrealized | ||||
Appreciation or (Depreciation) | ||||
on Derivatives Recognized in Income | ||||
Derivatives not | Forward | |||
accounted for as | Foreign | |||
hedging instruments | Currency | |||
under FASB ASC 815 | Contracts | |||
Foreign exchange contracts | $ | (14,936,615 | ) | |
Total | $ | (14,936,615 | ) | |
See Accompanying Notes to Financial Statements
135
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Greater China Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 100.0% | ||||||||||||||
China: 34.7% | ||||||||||||||
2,426,000 | Bank of China, Ltd. | $ | 1,407,301 | |||||||||||
210,000 | China Coal Energy Co. — Class H | 292,154 | ||||||||||||
2,819,000 | China Construction Bank | 2,430,349 | ||||||||||||
503,500 | China COSCO Holdings Co., Ltd. | 620,566 | ||||||||||||
263,000 | China High Speed Transmission Equipment Group Co., Ltd. | 527,444 | ||||||||||||
340,000 | China Life Insurance Co., Ltd. | 1,563,264 | ||||||||||||
1,582,000 | China Petroleum & Chemical Corp. | 1,341,650 | ||||||||||||
440,000 | @ | China Railway Group, Ltd. | 346,393 | |||||||||||
83,000 | China Shenhua Energy Co., Ltd. | 372,346 | ||||||||||||
36,000 | Dongfang Electrical Machinery Co., Ltd. | 178,834 | ||||||||||||
286,000 | Fujian Zijin Mining Industry Co., Ltd. | 276,830 | ||||||||||||
2,996,000 | Industrial and Commercial Bank of China, Ltd. | 2,383,665 | ||||||||||||
244,000 | Jiangxi Copper Co., Ltd. | 552,842 | ||||||||||||
7,800 | Mindray Medical International, Ltd. ADR | 239,694 | ||||||||||||
1,254,000 | PetroChina Co., Ltd. | 1,508,914 | ||||||||||||
602,500 | @ | Real Gold Mining, Ltd. | 756,595 | |||||||||||
630,000 | Shanghai Forte Land Co. | 191,141 | ||||||||||||
38,000 | Tencent Holdings, Ltd. | 661,678 | ||||||||||||
180,000 | Yanzhou Coal Mining Co., Ltd. | 278,273 | ||||||||||||
15,929,933 | ||||||||||||||
Hong Kong: 38.3% | ||||||||||||||
164,500 | BOC Hong Kong Holdings, Ltd. | 378,660 | ||||||||||||
123,000 | Cheung Kong Holdings, Ltd. | 1,561,029 | ||||||||||||
341,500 | China Mobile, Ltd. | 3,201,367 | ||||||||||||
170,160 | China Overseas Land & Investment, Ltd. | 366,849 | ||||||||||||
84,000 | China Resources Enterprise | 281,332 | ||||||||||||
704,000 | Chow Sang Sang Holdings International, Ltd. | 697,536 | ||||||||||||
780,000 | CNOOC, Ltd. | 1,168,156 | ||||||||||||
46,000 | Esprit Holdings, Ltd. | 306,219 | ||||||||||||
1,456,000 | Global Bio-Chem Technology Group Co., Ltd. | 354,392 | ||||||||||||
45,100 | Hang Seng Bank, Ltd. | 637,133 | ||||||||||||
32,800 | Hong Kong Exchanges and Clearing, Ltd. | 577,365 | ||||||||||||
232,500 | HongKong Electric Holdings | 1,243,381 | ||||||||||||
84,000 | Hutchison Whampoa, Ltd. | 589,586 | ||||||||||||
250,000 | Hysan Development Co., Ltd. | 738,355 | ||||||||||||
134,500 | Kerry Properties, Ltd. | 749,938 | ||||||||||||
94,000 | Li & Fung, Ltd. | 390,942 | ||||||||||||
183,500 | MTR Corp. | 649,920 | ||||||||||||
333,000 | New World Development, Ltd. | 716,764 | ||||||||||||
306,000 | Pacific Basin Shipping, Ltd. | 224,877 | ||||||||||||
265,000 | Ports Design, Ltd. | 714,145 | ||||||||||||
31,000 | Sun Hung Kai Properties, Ltd. | 469,666 | ||||||||||||
294,000 | Wharf Holdings, Ltd. | 1,588,516 | ||||||||||||
17,606,128 | ||||||||||||||
Taiwan: 27.0% | ||||||||||||||
502,637 | AU Optronics Corp. | 445,715 | ||||||||||||
27,436 | AU Optronics Corp. ADR | 242,260 | ||||||||||||
59,400 | Catcher Technology Co., Ltd. | 143,794 | ||||||||||||
640,000 | @ | Chi Mei Optoelectronics Corp. | 319,286 | |||||||||||
713,000 | @ | China Life Insurance Co., Ltd. | 517,812 | |||||||||||
757,117 | China Steel Corp. | 672,200 | ||||||||||||
113,341 | Chunghwa Telecom Co., Ltd. | 198,944 | ||||||||||||
38,060 | Chunghwa Telecom Co., Ltd. ADR | 661,483 | ||||||||||||
1,389,180 | E.Sun Financial Holding Co., Ltd. | 540,751 | ||||||||||||
153,000 | Far Eastern Department Stores Co., Ltd. | 157,177 | ||||||||||||
194,085 | Far Eastern Textile Co., Ltd. | 228,868 | ||||||||||||
896,975 | First Financial Holding Co., Ltd. | 518,174 | ||||||||||||
185,110 | Formosa Plastics Corp. | 355,057 | ||||||||||||
16,800 | High Tech Computer Corp. | 166,833 | ||||||||||||
138,830 | Hon Hai Precision Industry Co., Ltd. — GDR | 1,106,961 | ||||||||||||
147,000 | Hung Poo Real Estate Development Corp. | 212,111 | ||||||||||||
30,060 | MediaTek, Inc. | 420,719 | ||||||||||||
39,780 | Nan Ya Printed Circuit Board Corp. | 123,789 | ||||||||||||
1,050,000 | @ | Prince Housing & Development Corp. | 455,486 | |||||||||||
376,310 | Quanta Computer, Inc. | 711,853 | ||||||||||||
200,291 | @ | Radium Life Tech Co., Ltd. | 147,999 | |||||||||||
623,180 | Taiwan Cement Corp. | 639,349 | ||||||||||||
252,000 | Taiwan Fertilizer Co., Ltd. | 782,330 | ||||||||||||
586,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 1,063,003 | ||||||||||||
300,000 | The Ambassador Hotel | 304,152 | ||||||||||||
1,822,000 | @ | United Microelectronics Corp. | 875,860 | |||||||||||
340,000 | Yulon Motor Co., Ltd. | 380,296 | ||||||||||||
12,392,262 | ||||||||||||||
Total Common Stock (Cost $38,697,311) | 45,928,323 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 1.0% | ||||||||||||||
Hong Kong: 1.0% | ||||||||||||||
213,000 | Link Real Estate Investment Trust | 479,675 | ||||||||||||
Total Real Estate Investment Trusts (Cost $443,801) | 479,675 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $39,141,112)* | 101.0 | % | $ | 46,407,998 | ||||||||||
Other Assets and Liabilities - Net | (1.0 | ) | (464,863 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 45,943,135 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
* | Cost for federal income tax purposes is $41,118,265. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 7,771,573 | ||
Gross Unrealized Depreciation | (2,481,840 | ) | ||
Net Unrealized Appreciation | $ | 5,289,733 | ||
Percentage of | ||||
Industry | Net Assets | |||
Apparel | 0.5 | % | ||
Auto Manufacturers | 0.8 | |||
Banks | 15.8 | |||
Biotechnology | 0.8 | |||
Building Materials | 1.4 | |||
Chemicals | 2.5 | |||
Coal | 2.0 | |||
Computers | 1.9 | |||
Distribution/Wholesale | 0.8 | |||
Diversified Financial Services | 3.6 | |||
Electric | 2.7 | |||
Electrical Components & Equipment | 1.5 | |||
Electronics | 4.9 | |||
Engineering & Construction | 0.8 | |||
Healthcare — Products | 0.5 | |||
Holding Companies — Diversified | 5.4 | |||
Insurance | 4.5 | |||
Internet | 1.4 | |||
Iron/Steel | 1.5 | |||
Lodging | 0.7 | |||
Metal Fabricate/Hardware | 0.3 | |||
Mining | 3.5 | |||
Oil & Gas | 8.7 | |||
Real Estate | 12.2 | |||
Retail | 4.1 |
See Accompanying Notes to Financial Statements
136
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Greater China Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Semiconductors | 5.1 | |||
Shopping Centers | 1.0 | |||
Telecommunications | 8.8 | |||
Transportation | 3.3 | |||
Other Assets and Liabilities — Net | (1.0 | ) | ||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
China | $ | 239,694 | $ | 15,690,239 | $ | — | $ | 15,929,933 | ||||||||
Hong Kong | — | 17,606,128 | — | 17,606,128 | ||||||||||||
Taiwan | 903,743 | 11,488,519 | — | 12,392,262 | ||||||||||||
Total Common Stock | 1,143,437 | 44,784,886 | — | 45,928,323 | ||||||||||||
Real Estate Investment Trusts | — | 479,675 | — | 479,675 | ||||||||||||
Total Investments, at value | $ | 1,143,437 | $ | 45,264,561 | $ | — | $ | 46,407,998 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
137
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 99.1% | ||||||||||||||
Australia: 8.3% | ||||||||||||||
5,191 | AGL Energy, Ltd. | $ | 64,343 | |||||||||||
18,239 | AMP, Ltd. | 96,103 | ||||||||||||
31,461 | Australia & New Zealand Banking Group, Ltd. | 641,682 | ||||||||||||
45,346 | BHP Billiton, Ltd. | 1,487,196 | ||||||||||||
47,101 | BlueScope Steel, Ltd. | 124,825 | ||||||||||||
39,835 | Brambles, Ltd. | 251,135 | ||||||||||||
1,117 | Cochlear, Ltd. | 64,008 | ||||||||||||
17,980 | Commonwealth Bank of Australia | 830,882 | ||||||||||||
4,215 | Computershare, Ltd. | 40,921 | ||||||||||||
7,651 | CSL, Ltd. | 214,822 | ||||||||||||
9,660 | Energy Resources of Australia, Ltd. | 199,502 | ||||||||||||
4,882 | @ | Macquarie Group, Ltd. | 213,811 | |||||||||||
94,658 | Metcash, Ltd. | 397,978 | ||||||||||||
25,548 | National Australia Bank, Ltd. | 675,020 | ||||||||||||
2,892 | Orica, Ltd. | 61,348 | ||||||||||||
179,143 | Qantas Airways, Ltd. | 445,438 | ||||||||||||
16,568 | QBE Insurance Group, Ltd. | 333,659 | ||||||||||||
6,496 | @ | Rio Tinto, Ltd. | 360,078 | |||||||||||
12,813 | Sims Group, Ltd. | 225,896 | ||||||||||||
133,592 | Tattersall’s, Ltd. | 295,801 | ||||||||||||
119,290 | Telstra Corp., Ltd. | 354,485 | ||||||||||||
23,749 | Wesfarmers, Ltd. | 592,615 | ||||||||||||
28,507 | Westpac Banking Corp. | 666,282 | ||||||||||||
10,167 | Woodside Petroleum, Ltd. | 426,460 | ||||||||||||
4,321 | Woolworths, Ltd. | 110,600 | ||||||||||||
9,174,890 | ||||||||||||||
Austria: 0.8% | ||||||||||||||
4,547 | Erste Bank der Oesterreichischen Sparkassen AG | 182,803 | ||||||||||||
12,001 | OMV AG | 494,547 | ||||||||||||
15,025 | Telekom Austria AG | 246,125 | ||||||||||||
923,475 | ||||||||||||||
Belgium: 1.4% | ||||||||||||||
17,046 | Anheuser-Busch InBev NV | 800,313 | ||||||||||||
24,344 | @ | Anheuser-Busch InBev-ST | 179 | |||||||||||
7,510 | Delhaize Group | 510,168 | ||||||||||||
17,577 | Fortis | 75,995 | ||||||||||||
4,142 | @ | Fortis — STRIP VVPR | 12 | |||||||||||
2,088 | Groupe Bruxelles Lambert SA | 184,021 | ||||||||||||
1,570,688 | ||||||||||||||
China: 0.1% | ||||||||||||||
62,000 | @ | Foxconn International Holdings, Ltd. | 54,453 | |||||||||||
54,453 | ||||||||||||||
Denmark: 1.0% | ||||||||||||||
5,551 | Carlsberg A/S | 389,179 | ||||||||||||
9,558 | @ | Danske Bank A/S | 219,515 | |||||||||||
10,911 | H Lundbeck A/S | 211,323 | ||||||||||||
3,274 | Novo-Nordisk A/S | 203,401 | ||||||||||||
458 | @ | William Demant Holding | 32,566 | |||||||||||
1,055,984 | ||||||||||||||
Finland: 1.0% | ||||||||||||||
12,743 | Kone OYJ | 475,772 | ||||||||||||
34,918 | Nokia OYJ | 441,057 | ||||||||||||
920 | Sampo OYJ | 22,020 | ||||||||||||
4,071 | Wartsila OYJ | 147,373 | ||||||||||||
1,086,222 | ||||||||||||||
France: 8.3% | ||||||||||||||
40,544 | @ | Alcatel SA | 151,835 | |||||||||||
14,391 | AXA SA | 357,906 | ||||||||||||
10,122 | BNP Paribas | 762,532 | ||||||||||||
1,616 | Capgemini SA | 74,864 | ||||||||||||
621 | @ | Christian Dior SA | 61,931 | |||||||||||
2,017 | Cie Generale D’Optique Essilor International SA | 112,934 | ||||||||||||
6,865 | Compagnie Generale des Etablissements Michelin | 508,538 | ||||||||||||
14,711 | Credit Agricole SA | 281,791 | ||||||||||||
14,515 | France Telecom SA | 359,664 | ||||||||||||
3,601 | @ | Gaz de France | 150,549 | |||||||||||
1,938 | Hermes International | 269,510 | ||||||||||||
1,702 | Lafarge SA | 138,151 | ||||||||||||
229 | L’Oreal SA | 23,414 | ||||||||||||
3,481 | @ | LVMH Moet Hennessy Louis Vuitton SA | 360,462 | |||||||||||
4,099 | Pernod-Ricard SA | 341,476 | ||||||||||||
3,007 | PPR | 327,713 | ||||||||||||
11,917 | Publicis Groupe | 452,816 | ||||||||||||
15,006 | Sanofi-Aventis | 1,099,972 | ||||||||||||
6,870 | Schneider Electric SA | 714,403 | ||||||||||||
5,756 | Scor SA | 146,495 | ||||||||||||
850 | Societe BIC SA | 58,993 | ||||||||||||
6,480 | Societe Generale | 430,400 | ||||||||||||
31,310 | Total SA | 1,873,599 | ||||||||||||
2,680 | Vivendi | 74,349 | ||||||||||||
9,134,297 | ||||||||||||||
Germany: 7.3% | ||||||||||||||
6,111 | Allianz AG | 700,466 | ||||||||||||
17,684 | BASF AG | 946,624 | ||||||||||||
5,528 | Bayer AG | 383,535 | ||||||||||||
12,239 | Bayerische Motoren Werke AG | 598,712 | ||||||||||||
1,313 | DaimlerChrysler AG | 63,776 | ||||||||||||
8,083 | Deutsche Bank AG | 587,241 | ||||||||||||
846 | Deutsche Boerse AG | 68,520 | ||||||||||||
48,608 | Deutsche Telekom AG | 664,247 | ||||||||||||
32,551 | E.ON AG | 1,247,513 | ||||||||||||
3,173 | @ | Hannover Rueckversicheru — Reg | 143,045 | |||||||||||
3,041 | Muenchener Rueckversicherungs AG | 481,125 | ||||||||||||
9,706 | RWE AG | 851,340 | ||||||||||||
1,406 | Salzgitter AG | 126,400 | ||||||||||||
14,391 | SAP AG | 651,842 | ||||||||||||
4,530 | Siemens AG | 409,362 | ||||||||||||
5,836 | @ | United Internet AG | 75,987 | |||||||||||
7,999,735 | ||||||||||||||
Greece: 0.7% | ||||||||||||||
4,010 | @ | National Bank of Greece SA | 146,607 | |||||||||||
20,209 | OPAP SA | 514,415 | ||||||||||||
3,387 | @ | Public Power Corp. | 69,085 | |||||||||||
730,107 | ||||||||||||||
Hong Kong: 2.4% | ||||||||||||||
25,000 | Cheung Kong Holdings, Ltd. | 317,282 | ||||||||||||
16,500 | CLP Holdings, Ltd. | 110,584 | ||||||||||||
28,000 | Hang Lung Group, Ltd. | 140,356 | ||||||||||||
53,000 | Hang Lung Properties, Ltd. | 200,296 | ||||||||||||
3,470 | Hang Seng Bank, Ltd. | 49,021 | ||||||||||||
39,000 | Hong Kong & China Gas | 93,829 | ||||||||||||
17,300 | Hong Kong Exchanges and Clearing, Ltd. | 304,525 | ||||||||||||
35,500 | HongKong Electric Holdings | 189,850 | ||||||||||||
37,500 | Hopewell Holdings | 117,975 | ||||||||||||
36,162 | Hutchison Whampoa, Ltd. | 253,817 | ||||||||||||
82,000 | New World Development, Ltd. | 176,500 | ||||||||||||
84,000 | Sino Land Co. | 159,765 | ||||||||||||
22,000 | Sun Hung Kai Properties, Ltd. | 333,311 | ||||||||||||
17,500 | Swire Pacific, Ltd. | 213,263 | ||||||||||||
4,000 | Wharf Holdings, Ltd. | 21,612 | ||||||||||||
2,681,986 | ||||||||||||||
Italy: 3.0% | ||||||||||||||
8,406 | Assicurazioni Generali S.p.A. | 211,657 | ||||||||||||
12,625 | @ | Autostrade S.p.A. | 298,537 | |||||||||||
19,479 | Banca Popolare di Milano Scrl | 144,931 | ||||||||||||
13,940 | Banche Popolari Unite Scpa | 199,117 |
See Accompanying Notes to Financial Statements
138
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Italy (continued) | ||||||||||||||
5,861 | @ | Banco Popolare Scarl | $ | 50,915 | ||||||||||
81,691 | @ | Enel S.p.A. | 486,086 | |||||||||||
11,675 | ENI S.p.A. | 289,152 | ||||||||||||
110,815 | @ | Intesa Sanpaolo S.p.A. | 466,363 | |||||||||||
38,739 | Intesa Sanpaolo S.p.A. — RNC | 126,317 | ||||||||||||
153,067 | Parmalat S.p.A | 424,227 | ||||||||||||
187,640 | UniCredito Italiano S.p.A. | 628,633 | ||||||||||||
3,325,935 | ||||||||||||||
Japan: 21.2% | ||||||||||||||
1,500 | Aeon Credit Service Co., Ltd. | 14,442 | ||||||||||||
8,000 | Aioi Insurance Co., Ltd. | 35,219 | ||||||||||||
10,700 | Aisin Seiki Co., Ltd. | 272,054 | ||||||||||||
5,000 | Bank of Kyoto, Ltd. | 45,372 | ||||||||||||
2,885 | Bridgestone Corp. | 47,576 | ||||||||||||
30,900 | Brother Industries, Ltd. | 351,816 | ||||||||||||
3,800 | Canon, Inc. | 143,271 | ||||||||||||
80 | Central Japan Railway Co. | 532,982 | ||||||||||||
21,600 | Chubu Electric Power Co., Inc. | 482,244 | ||||||||||||
23,419 | Daihatsu Motor Co., Ltd. | 239,582 | ||||||||||||
23,800 | Daiichi Sankyo Co., Ltd. | 464,951 | ||||||||||||
3,422 | Daito Trust Construction Co., Ltd. | 142,240 | ||||||||||||
15,000 | @ | Daiwa House Industry Co., Ltd. | 160,253 | |||||||||||
3,000 | Daiwa Securities Group, Inc. | 15,790 | ||||||||||||
4,420 | Diamond Lease Co., Ltd. | 131,653 | ||||||||||||
6,700 | East Japan Railway Co. | 429,060 | ||||||||||||
3,500 | Electric Power Development Co. | 107,915 | ||||||||||||
600 | Fast Retailing Co., Ltd. | 98,756 | ||||||||||||
66,000 | @ | Fuji Heavy Industries, Ltd. | 257,914 | |||||||||||
17,000 | Fuji Photo Film Co., Ltd. | 483,298 | ||||||||||||
15 | Fuji Television Network, Inc. | 22,040 | ||||||||||||
21,000 | Fujitsu, Ltd. | 123,665 | ||||||||||||
20,000 | Gunma Bank, Ltd. | 104,196 | ||||||||||||
1,300 | Hirose Electric Co., Ltd. | 133,997 | ||||||||||||
12,500 | Honda Motor Co., Ltd. | 386,084 | ||||||||||||
85,660 | Itochu Corp. | 541,438 | ||||||||||||
184 | Japan Tobacco, Inc. | 516,213 | ||||||||||||
17,800 | @ | JFE Holdings, Inc. | 579,831 | |||||||||||
199 | Jupiter Telecommunications Co. | 181,893 | ||||||||||||
86,000 | Kajima Corp. | 201,350 | ||||||||||||
10,900 | Kao Corp. | 242,785 | ||||||||||||
74 | KDDI Corp. | 392,754 | ||||||||||||
37,000 | Keisei Electric Railway Co., Ltd. | 208,044 | ||||||||||||
700 | Kyocera Corp. | 58,719 | ||||||||||||
19,400 | Kyushu Electric Power Co., Inc. | 396,110 | ||||||||||||
1,400 | Mabuchi Motor Co., Ltd. | 66,994 | ||||||||||||
78,000 | Marubeni Corp. | 385,911 | ||||||||||||
112,000 | @ | Mazda Motor Corp. | 252,769 | |||||||||||
20,600 | Mediceo Paltac Holdings Co., Ltd. | 287,677 | ||||||||||||
7,000 | Mitsubishi Corp. | 148,402 | ||||||||||||
7,000 | Mitsubishi Estate Co., Ltd. | 105,734 | ||||||||||||
120,997 | Mitsubishi UFJ Financial Group, Inc. | 644,479 | ||||||||||||
37,392 | Mitsui & Co., Ltd. | 491,067 | ||||||||||||
88,000 | @ | Mitsui Engineering & Shipbuilding Co., Ltd. | 227,862 | |||||||||||
8,452 | Mitsui Fudosan Co., Ltd. | 136,753 | ||||||||||||
26,000 | @ | Mitsui OSK Lines, Ltd. | 150,969 | |||||||||||
2,400 | Mitsui Sumitomo Insurance Group Holdings, Inc. | 55,867 | ||||||||||||
16,700 | Mitsumi Electric Co., Ltd. | 336,877 | ||||||||||||
94,524 | @ | Mizuho Financial Group, Inc. | 186,442 | |||||||||||
2,500 | Murata Manufacturing Co., Ltd. | 121,979 | ||||||||||||
25,000 | NHK Spring Co., Ltd. | 195,200 | ||||||||||||
1,200 | Nikon Corp. | 22,365 | ||||||||||||
1,500 | Nintendo Co., Ltd. | 376,237 | ||||||||||||
41,000 | Nippon Electric Glass Co., Ltd. | 441,482 | ||||||||||||
52,500 | Nippon Mining Holdings, Inc. | 234,214 | ||||||||||||
4,000 | Nippon Oil Corp. | 19,711 | ||||||||||||
16,800 | �� | Nippon Paper Group, Inc. | 445,832 | |||||||||||
10,300 | Nippon Telegraph & Telephone Corp. | 425,002 | ||||||||||||
38,966 | @ | Nishi-Nippon City Bank, Ltd. | 96,395 | |||||||||||
7,500 | Nisshin Seifun Group, Inc. | 100,048 | ||||||||||||
900 | Nissin Food Products Co., Ltd. | 31,759 | ||||||||||||
3,800 | NOK Corp. | 50,419 | ||||||||||||
47,400 | Nomura Holdings, Inc. | 334,086 | ||||||||||||
37 | NTT DoCoMo, Inc. | 53,660 | ||||||||||||
16,000 | @ | Onward Kashiyama Co., Ltd. | 99,324 | |||||||||||
1,740 | ORIX Corp. | 112,395 | ||||||||||||
21,650 | @ | Promise Co., Ltd. | 137,616 | |||||||||||
4,000 | Rohm Co., Ltd. | 265,268 | ||||||||||||
5,400 | Sankyo Co., Ltd. | 308,447 | ||||||||||||
15,800 | Sapporo Hokuyo Holdings, Inc. | 53,334 | ||||||||||||
2,700 | Seven & I Holdings Co., Ltd. | 59,109 | ||||||||||||
19,900 | Shinko Electric Industries | 296,387 | ||||||||||||
73,000 | @ | Shinsei Bank, Ltd. | 95,234 | |||||||||||
25,000 | Sompo Japan Insurance, Inc. | 146,197 | ||||||||||||
26,900 | Sony Corp. | 794,325 | ||||||||||||
56,900 | Sumitomo Corp. | 552,369 | ||||||||||||
20,800 | Sumitomo Electric Industries, Ltd. | 252,403 | ||||||||||||
11,000 | @ | Sumitomo Heavy Industries | 49,908 | |||||||||||
7,200 | Sumitomo Mitsui Financial Group, Inc. | 244,729 | ||||||||||||
9,000 | Sumitomo Realty & Development Co., Ltd. | 170,653 | ||||||||||||
36,000 | Sumitomo Trust & Banking Co., Ltd. | 187,560 | ||||||||||||
10,802 | Suruga Bank, Ltd. | 97,593 | ||||||||||||
1,100 | Suzuki Motor Corp. | 26,616 | ||||||||||||
16,751 | Takeda Pharmaceutical Co., Ltd. | 669,932 | ||||||||||||
80,000 | Toho Gas Co., Ltd. | 414,857 | ||||||||||||
12,249 | Tokio Marine Holdings, Inc. | 313,212 | ||||||||||||
61,000 | Tokuyama Corp. | 383,300 | ||||||||||||
1,000 | Tokyo Electric Power Co., Inc. | 24,581 | ||||||||||||
16,000 | Tokyu Land Corp. | 64,515 | ||||||||||||
4,000 | TonenGeneral Sekiyu KK | 36,502 | ||||||||||||
10,000 | Toyo Suisan Kaisha, Ltd. | 261,669 | ||||||||||||
4,000 | Toyoda Gosei Co., Ltd. | 112,135 | ||||||||||||
25,990 | Toyota Motor Corp. | 1,026,006 | ||||||||||||
11,300 | Toyota Tsusho Corp. | 161,568 | ||||||||||||
5,880 | USS Co., Ltd. | 355,697 | ||||||||||||
9,000 | Yamaguchi Financial Group, Inc. | 85,987 | ||||||||||||
15,200 | Yamato Kogyo Co., Ltd. | 456,151 | ||||||||||||
23,287,278 | ||||||||||||||
Kazakhstan: 0.1% | ||||||||||||||
10,136 | Eurasian Natural Resources Corp. | 137,932 | ||||||||||||
137,932 | ||||||||||||||
Luxembourg: 0.7% | ||||||||||||||
431 | ArcelorMittal | 14,726 | ||||||||||||
21,342 | ArcelorMittal | 722,268 | ||||||||||||
736,994 | ||||||||||||||
Netherlands: 4.3% | ||||||||||||||
6,131 | @ | Aegon NV | 43,576 | |||||||||||
2,640 | European Aeronautic Defence and Space Co. NV | 49,435 | ||||||||||||
27,854 | Koninklijke Philips Electronics NV | 699,715 | ||||||||||||
9,871 | @ | Randstad Holdings NV | 374,529 | |||||||||||
525 | @ | Royal Dutch Shell PLC | 15,566 | |||||||||||
40,746 | Royal Dutch Shell PLC — Class A | 1,202,971 | ||||||||||||
44,924 | Royal Dutch Shell PLC — Class B | 1,293,251 | ||||||||||||
33,162 | Royal KPN NV | 601,516 | ||||||||||||
13,512 | Unilever NV | 416,346 | ||||||||||||
4,696,905 | ||||||||||||||
Norway: 0.7% | ||||||||||||||
8,000 | @ | DnB NOR ASA | 91,644 | |||||||||||
29,700 | Statoil ASA | 699,857 | ||||||||||||
791,501 | ||||||||||||||
Portugal: 0.6% | ||||||||||||||
39,274 | Jeronimo Martins | 349,865 | ||||||||||||
26,399 | Portugal Telecom SGPS SA | 301,754 | ||||||||||||
651,619 | ||||||||||||||
See Accompanying Notes to Financial Statements
139
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Singapore: 0.9% | ||||||||||||||
27,000 | ComfortDelgro Corp., Ltd. | $ | 29,339 | |||||||||||
10,000 | DBS Group Holdings, Ltd. | 91,576 | ||||||||||||
15,000 | Jardine Cycle & Carriage, Ltd. | 246,333 | ||||||||||||
34,000 | Oversea-Chinese Banking Corp. | 183,222 | ||||||||||||
25,000 | @ | Singapore Exchange, Ltd. | 141,670 | |||||||||||
19,000 | Singapore Press Holdings, Ltd. | 52,031 | ||||||||||||
30,000 | Singapore Telecommunications, Ltd. | 62,212 | ||||||||||||
5,000 | United Overseas Bank, Ltd. | 59,934 | ||||||||||||
35,000 | United Overseas Land, Ltd. | 83,500 | ||||||||||||
949,817 | ||||||||||||||
Spain: 5.6% | ||||||||||||||
14,198 | Abertis Infraestructuras SA | 301,892 | ||||||||||||
10,371 | ACS Actividades de Construccion y Servicios SA | 497,979 | ||||||||||||
46,586 | Banco Bilbao Vizcaya Argentaria SA | 832,725 | ||||||||||||
21,302 | Banco Popular Espanol SA | 189,750 | ||||||||||||
100,673 | Banco Santander SA | 1,620,055 | ||||||||||||
33,637 | Corp. Mapfre SA | 144,147 | ||||||||||||
27,874 | @ | Criteria Caixacorp SA | 135,880 | |||||||||||
23,167 | Gas Natural SDG SA | 465,443 | ||||||||||||
39,522 | Iberdrola SA | 358,013 | ||||||||||||
56,853 | Telefonica SA | 1,587,705 | ||||||||||||
6,133,589 | ||||||||||||||
Sweden: 4.4% | ||||||||||||||
28,442 | Assa Abloy AB | 497,016 | ||||||||||||
16,559 | Atlas Copco AB — Class A | 222,040 | ||||||||||||
41,458 | Atlas Copco AB — Class B | 493,964 | ||||||||||||
5,202 | Getinge AB | 96,936 | ||||||||||||
4,066 | Hennes & Mauritz AB | 230,956 | ||||||||||||
11,412 | Investor AB | 201,912 | ||||||||||||
46,299 | Nordea Bank AB | 496,947 | ||||||||||||
33,515 | @ | Skandinaviska Enskilda Banken AB | 203,008 | |||||||||||
33,784 | Skanska AB | 495,778 | ||||||||||||
3,228 | SKF AB — B Shares | 51,115 | ||||||||||||
37,167 | Svenska Cellulosa AB — B Shares | 510,714 | ||||||||||||
9,197 | Svenska Handelsbanken AB | 237,668 | ||||||||||||
23,987 | Swedish Match AB | 492,300 | ||||||||||||
4,208 | Tele2 AB — B Shares | 61,335 | ||||||||||||
56,964 | Telefonaktiebolaget LM Ericsson | 595,151 | ||||||||||||
4,886,840 | ||||||||||||||
Switzerland: 8.2% | ||||||||||||||
2,651 | @ | ABB, Ltd. | 49,312 | |||||||||||
14,852 | Credit Suisse Group | 793,946 | ||||||||||||
8,942 | @ | Holcim, Ltd. | 569,112 | |||||||||||
423 | Julius Baer Group, Ltd. | 15,924 | ||||||||||||
423 | Julius Baer Holding AG — Reg | 5,161 | ||||||||||||
31,081 | Nestle SA | 1,445,315 | ||||||||||||
28,315 | Novartis AG | 1,474,480 | ||||||||||||
9,411 | Roche Holding AG — Genusschein | 1,507,293 | ||||||||||||
1,639 | Swatch Group AG — BR | 382,701 | ||||||||||||
6,149 | Swiss Reinsurance | 250,391 | ||||||||||||
1,855 | Syngenta AG | 439,229 | ||||||||||||
2,570 | Synthes, Inc. | 304,882 | ||||||||||||
35,267 | @ | UBS AG — Reg | 588,068 | |||||||||||
49,707 | @ | Xstrata PLC | 715,958 | |||||||||||
2,106 | Zurich Financial Services AG | 482,258 | ||||||||||||
9,024,030 | ||||||||||||||
United Kingdom: 18.1% | ||||||||||||||
5,625 | @ | Anglo American PLC | 203,530 | |||||||||||
21,452 | AstraZeneca PLC | 963,014 | ||||||||||||
4,755 | @ | Autonomy Corp. PLC | 104,547 | |||||||||||
46,057 | Aviva PLC | 288,002 | ||||||||||||
63,751 | BAE Systems PLC | 327,813 | ||||||||||||
143,599 | @ | Barclays PLC | 752,614 | |||||||||||
45,979 | BG Group PLC | 791,451 | ||||||||||||
17,811 | BHP Billiton PLC | 479,917 | ||||||||||||
176,390 | BP PLC | 1,652,823 | ||||||||||||
34,763 | British American Tobacco PLC | 1,107,759 | ||||||||||||
33,247 | BT Group PLC | 71,247 | ||||||||||||
107,912 | Cable & Wireless PLC | 256,042 | ||||||||||||
15,048 | Compass Group PLC | 95,435 | ||||||||||||
55,311 | Diageo PLC | 900,909 | ||||||||||||
10,240 | Drax Group PLC | 77,908 | ||||||||||||
18,834 | Experian Group, Ltd. | 172,112 | ||||||||||||
50,554 | GlaxoSmithKline PLC | 1,037,001 | ||||||||||||
6,012 | Group 4 Securicor PLC | 24,855 | ||||||||||||
200,075 | HSBC Holdings PLC | 2,210,851 | ||||||||||||
20,364 | ICAP PLC | 135,344 | ||||||||||||
3,683 | Imperial Tobacco Group PLC | 108,536 | ||||||||||||
115,862 | International Power PLC | 481,023 | ||||||||||||
11,849 | Investec PLC | 84,580 | ||||||||||||
85,011 | J Sainsbury PLC | 458,774 | ||||||||||||
23,415 | @ | Kazakhmys PLC | 416,709 | |||||||||||
83,944 | Kingfisher PLC | 306,825 | ||||||||||||
136,782 | @ | Lloyds TSB Group PLC | 192,859 | |||||||||||
8,639 | London Stock Exchange Group PLC | 120,172 | ||||||||||||
31,406 | National Grid PLC | 311,104 | ||||||||||||
129,474 | @ | Old Mutual PLC | 224,718 | |||||||||||
40,906 | Pearson PLC | 556,027 | ||||||||||||
4,006 | Petrofac, Ltd. | 61,656 | ||||||||||||
17,704 | Prudential PLC | 160,813 | ||||||||||||
15,670 | Reckitt Benckiser PLC | 778,406 | ||||||||||||
11,902 | @ | Rio Tinto PLC | 526,186 | |||||||||||
68,639 | @ | Rolls-Royce Group PLC | 506,201 | |||||||||||
4,118,340 | @ | Rolls-Royce Group PLC — C Shares | 6,759 | |||||||||||
90,510 | Royal & Sun Alliance Insurance Group | 179,357 | ||||||||||||
142,995 | @ | Royal Bank of Scotland Group PLC | 97,548 | |||||||||||
18,172 | Smith & Nephew PLC | 160,638 | ||||||||||||
27,392 | Standard Chartered PLC | 671,982 | ||||||||||||
51,579 | Standard Life PLC | 183,868 | ||||||||||||
19,936 | Tesco PLC | 132,927 | ||||||||||||
569,522 | Vodafone Group PLC | 1,255,132 | ||||||||||||
30,654 | WPP PLC | 274,718 | ||||||||||||
19,910,692 | ||||||||||||||
Total Common Stock (Cost $100,517,610) | 108,944,969 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 0.8% | ||||||||||||||
Australia: 0.5% | ||||||||||||||
79,151 | CFS Retail Property Trust | 136,004 | ||||||||||||
32,609 | Westfield Group | 353,287 | ||||||||||||
489,291 | ||||||||||||||
France: 0.3% | ||||||||||||||
303 | Gecina SA | 32,234 | ||||||||||||
1,475 | Unibail | 326,632 | ||||||||||||
358,866 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $642,235) | 848,157 | |||||||||||||
PREFERRED STOCK: 0.3% | ||||||||||||||
Germany: 0.3% | ||||||||||||||
3,324 | Porsche AG | 250,060 | ||||||||||||
1,829 | RWE AG | 143,388 | ||||||||||||
Total Preferred Stock (Cost $395,223) | 393,448 | |||||||||||||
See Accompanying Notes to Financial Statements
140
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
RIGHTS: 0.0% | ||||||||||||||
Belgium: 0.0% | ||||||||||||||
5,625 | I,X | Fortis | $ | — | ||||||||||
Total Rights (Cost $—) | — | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $101,555,068)* | 100.2 | % | $ | 110,186,574 | ||||||||||
Other Assets and Liabilities - Net | (0.2 | ) | (220,137 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 109,966,437 | ||||||||||
@ | Non-income producing security | |
I | Illiquid security | |
X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
* | Cost for federal income tax purposes is $108,773,369. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 12,924,928 | ||
Gross Unrealized Depreciation | (11,511,723 | ) | ||
Net Unrealized Appreciation | $ | 1,413,205 | ||
Percentage of | ||||
Industry | Net Assets | |||
Advertising | 0.4 | % | ||
Aerospace/Defense | 0.8 | |||
Agriculture | 2.0 | |||
Airlines | 0.4 | |||
Apparel | 0.4 | |||
Auto Manufacturers | 2.8 | |||
Auto Parts & Equipment | 1.3 | |||
Banks | 16.7 | |||
Beverages | 2.2 | |||
Biotechnology | 0.2 | |||
Building Materials | 0.6 | |||
Chemicals | 2.0 | |||
Commercial Services | 1.3 | |||
Computers | 0.2 | |||
Cosmetics/Personal Care | 0.2 | |||
Distribution/Wholesale | 2.3 | |||
Diversified | 0.3 | |||
Diversified Financial Services | 1.8 | |||
Electric | 5.0 | |||
Electrical Components & Equipment | 1.0 | |||
Electronics | 1.7 | |||
Engineering & Construction | 1.1 | |||
Entertainment | 1.0 | |||
Food | 4.2 | |||
Food Service | 0.1 | |||
Forest Products & Paper | 0.9 | |||
Gas | 0.9 | |||
Healthcare — Products | 0.7 | |||
Holding Companies — Diversified | 1.0 | |||
Home Builders | 0.1 | |||
Home Furnishings | 0.7 | |||
Household Products/Wares | 0.8 | |||
Insurance | 4.5 | |||
Internet | 0.1 | |||
Investment Companies | 0.2 | |||
Iron/Steel | 1.8 | |||
Machinery — Construction & Mining | 0.7 | |||
Machinery — Diversified | 0.5 | |||
Media | 1.1 | |||
Metal Fabricate/Hardware | 0.7 | |||
Mining | 4.2 | |||
Miscellaneous Manufacturing | 1.0 | |||
Office/Business Equipment | 0.1 | |||
Oil & Gas | 8.2 | |||
Oil & Gas Services | 0.1 | |||
Pharmaceuticals | 7.2 | |||
Real Estate | 2.0 | |||
Retail | 2.1 | |||
Semiconductors | 0.5 | |||
Shipbuilding | 0.2 | |||
Shopping Centers | 0.5 | |||
Software | 0.7 | |||
Telecommunications | 7.2 | |||
Toys/Games/Hobbies | 0.3 | |||
Transportation | 1.2 | |||
Other Assets and Liabilities — Net | (0.2 | ) | ||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
141
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Index Plus International Equity Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 9,174,890 | $ | — | $ | 9,174,890 | ||||||||
Austria | — | 923,475 | — | 923,475 | ||||||||||||
Belgium | — | 1,570,688 | — | 1,570,688 | ||||||||||||
China | — | 54,453 | — | 54,453 | ||||||||||||
Denmark | — | 1,055,984 | — | 1,055,984 | ||||||||||||
Finland | — | 1,086,222 | — | 1,086,222 | ||||||||||||
France | — | 9,134,297 | — | 9,134,297 | ||||||||||||
Germany | — | 7,999,735 | — | 7,999,735 | ||||||||||||
Greece | — | 730,107 | — | 730,107 | ||||||||||||
Hong Kong | — | 2,681,986 | — | 2,681,986 | ||||||||||||
Italy | — | 3,325,935 | — | 3,325,935 | ||||||||||||
Japan | — | 23,287,278 | — | 23,287,278 | ||||||||||||
Kazakhstan | — | 137,932 | — | 137,932 | ||||||||||||
Luxembourg | — | 736,994 | — | 736,994 | ||||||||||||
Netherlands | — | 4,696,905 | — | 4,696,905 | ||||||||||||
Norway | — | 791,501 | — | 791,501 | ||||||||||||
Portugal | — | 651,619 | — | 651,619 | ||||||||||||
Singapore | — | 949,817 | — | 949,817 | ||||||||||||
Spain | — | 6,133,589 | — | 6,133,589 | ||||||||||||
Sweden | — | 4,886,840 | — | 4,886,840 | ||||||||||||
Switzerland | 15,924 | 9,008,106 | — | 9,024,030 | ||||||||||||
United Kingdom | — | 19,910,692 | — | 19,910,692 | ||||||||||||
Total Common Stock | 15,924 | 108,929,045 | — | 108,944,969 | ||||||||||||
Real Estate Investment Trusts | — | 848,157 | — | 848,157 | ||||||||||||
Preferred Stock | — | 393,448 | — | 393,448 | ||||||||||||
Rights | — | — | — | — | ||||||||||||
Total Investments, at value | $ | 15,924 | $ | 110,170,650 | $ | — | $ | 110,186,574 | ||||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended October 31, 2009:
Change In | ||||||||||||||||||||||||||||||||||||||||||||
Beginning | Accrued | Total | Unrealized | Transfers | Transfers | Ending | ||||||||||||||||||||||||||||||||||||||
Balance at | Discounts/ | Realized | Appreciation/ | Into | Out of | Balance | ||||||||||||||||||||||||||||||||||||||
10/31/2008 | Purchases | Issuances | Settlements | Sales | (Premiums) | Gain/(Loss) | (Depreciation) | Level 3’ | Level 3 | at 10/31/2009 | ||||||||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||||||||||||||
Rights | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Total Investments, at value | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
As of October 31, 2009, total change in unrealized gain (loss) on Level 3 securities still held at year end and included in the change in net assets was $-.ˆˆ
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
ˆˆ | Amount is less than $1. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
142
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 98.3% | ||||||||||||||
Australia: 5.1% | ||||||||||||||
56,914 | BHP Billiton, Ltd. | $ | 1,866,588 | |||||||||||
58,612 | CSL, Ltd. | 1,645,686 | ||||||||||||
36,418 | Rio Tinto, Ltd. | 2,018,677 | ||||||||||||
5,530,951 | ||||||||||||||
Belgium: 1.1% | ||||||||||||||
25,571 | Anheuser-Busch InBev NV | 1,200,563 | ||||||||||||
1,200,563 | ||||||||||||||
Brazil: 5.2% | ||||||||||||||
93,245 | Banco Itau Holding Financeira SA ADR | 1,784,709 | ||||||||||||
35,740 | Petroleo Brasileiro SA ADR | 1,651,903 | ||||||||||||
86,715 | Vale SA ADR | 2,210,365 | ||||||||||||
5,646,977 | ||||||||||||||
Canada: 6.5% | ||||||||||||||
82,526 | Cameco Corp. | 2,245,532 | ||||||||||||
99,733 | Manulife Financial Corp. | 1,854,036 | ||||||||||||
30,774 | Shoppers Drug Mart Corp. | 1,222,655 | ||||||||||||
53,700 | Suncor Energy, Inc. | 1,773,174 | ||||||||||||
7,095,397 | ||||||||||||||
China: 7.9% | ||||||||||||||
1,098,000 | L | China Communications Construction Co., Ltd. | 1,180,443 | |||||||||||
540,500 | China Merchants Bank Co., Ltd. | 1,382,784 | ||||||||||||
1,663,000 | Industrial and Commercial Bank of China, Ltd. | 1,323,108 | ||||||||||||
16,428 | @,L | New Oriental Education & Technology Group ADR | 1,147,332 | |||||||||||
990,000 | PetroChina Co., Ltd. | 1,191,248 | ||||||||||||
134,800 | Tencent Holdings, Ltd. | 2,347,215 | ||||||||||||
8,572,130 | ||||||||||||||
Denmark: 2.9% | ||||||||||||||
19,625 | Novo-Nordisk A/S | 1,219,227 | ||||||||||||
27,604 | @ | Vestas Wind Systems A/S | 1,936,048 | |||||||||||
3,155,275 | ||||||||||||||
France: 8.4% | ||||||||||||||
74,637 | AXA SA | 1,856,234 | ||||||||||||
25,268 | BNP Paribas | 1,903,543 | ||||||||||||
39,833 | Electricite de France | 2,220,115 | ||||||||||||
18,501 | Iliad SA | 2,003,268 | ||||||||||||
18,611 | Total SA ADR | 1,117,963 | ||||||||||||
9,101,123 | ||||||||||||||
Germany: 5.5% | ||||||||||||||
32,836 | Adidas AG | 1,520,324 | ||||||||||||
19,619 | Deutsche Boerse AG | 1,588,995 | ||||||||||||
26,425 | SAP AG ADR | 1,196,260 | ||||||||||||
11,689 | Wacker Chemie AG | 1,679,393 | ||||||||||||
5,984,972 | ||||||||||||||
Hong Kong: 5.9% | ||||||||||||||
1,194,000 | Agile Property Holdings, Ltd. | 1,528,213 | ||||||||||||
257,100 | Esprit Holdings, Ltd. | 1,711,500 | ||||||||||||
328,000 | Hang Lung Properties, Ltd. | 1,239,568 | ||||||||||||
456,000 | Li & Fung, Ltd. | 1,896,485 | ||||||||||||
6,375,766 | ||||||||||||||
India: 2.8% | ||||||||||||||
15,661 | HDFC Bank, Ltd. ADR | 1,732,263 | ||||||||||||
27,280 | Infosys Technologies, Ltd. ADR | 1,254,880 | ||||||||||||
2,987,143 | ||||||||||||||
Israel: 1.1% | ||||||||||||||
24,076 | Teva Pharmaceutical Industries, Ltd. ADR | 1,215,356 | ||||||||||||
1,215,356 | ||||||||||||||
Italy: 1.0% | ||||||||||||||
38,482 | Saipem S.p.A. | 1,135,407 | ||||||||||||
1,135,407 | ||||||||||||||
Japan: 10.0% | ||||||||||||||
18,000 | Fanuc, Ltd. | 1,495,101 | ||||||||||||
9,200 | Fast Retailing Co., Ltd. | 1,514,259 | ||||||||||||
1,600 | Jupiter Telecommunications Co. | 1,462,459 | ||||||||||||
74,000 | NGK Insulators, Ltd. | 1,659,818 | ||||||||||||
19,600 | Shin-Etsu Chemical Co., Ltd. | 1,039,413 | ||||||||||||
399 | Sony Financial Holdings, Inc. | 1,144,980 | ||||||||||||
32,800 | Toyota Motor Corp. | 1,294,844 | ||||||||||||
21,490 | Yamada Denki Co., Ltd. | 1,309,527 | ||||||||||||
10,920,401 | ||||||||||||||
Luxembourg: 1.4% | ||||||||||||||
24,670 | @ | Millicom International Cellular SA | 1,545,822 | |||||||||||
1,545,822 | ||||||||||||||
Mexico: 1.1% | ||||||||||||||
34,834 | L | Wal-Mart de Mexico SA de CV ADR | 1,212,572 | |||||||||||
1,212,572 | ||||||||||||||
Russia: 1.2% | ||||||||||||||
56,143 | OAO Gazprom ADR | 1,346,425 | ||||||||||||
1,346,425 | ||||||||||||||
South Africa: 1.0% | ||||||||||||||
72,987 | MTN Group, Ltd. | 1,086,721 | ||||||||||||
1,086,721 | ||||||||||||||
South Korea: 1.6% | ||||||||||||||
5,533 | Samsung Electronics Co., Ltd. GDR | 1,691,841 | ||||||||||||
1,691,841 | ||||||||||||||
Spain: 4.2% | ||||||||||||||
94,854 | Banco Santander SA | 1,526,415 | ||||||||||||
96,733 | @ | Banco Santander SA | 17,083 | |||||||||||
52,960 | Gamesa Corp. Tecnologica SA | 967,738 | ||||||||||||
72,267 | Telefonica SA | 2,018,164 | ||||||||||||
4,529,400 | ||||||||||||||
Sweden: 1.1% | ||||||||||||||
88,882 | Atlas Copco AB — Class A | 1,191,823 | ||||||||||||
1,191,823 | ||||||||||||||
Switzerland: 7.8% | ||||||||||||||
63,156 | ABB, Ltd. | 1,174,788 | ||||||||||||
28,179 | Credit Suisse Group | 1,506,370 | ||||||||||||
73,266 | @,L | Logitech International SA | 1,245,522 | |||||||||||
28,589 | Nestle SA | 1,329,433 | ||||||||||||
26,203 | Novartis AG | 1,364,499 | ||||||||||||
11,869 | Roche Holding AG — Genusschein | 1,900,974 | ||||||||||||
8,521,586 | ||||||||||||||
United Kingdom: 15.5% | ||||||||||||||
684,425 | ARM Holdings PLC | 1,662,646 | ||||||||||||
109,657 | @ | Autonomy Corp. PLC | 2,410,997 | |||||||||||
75,696 | BG Group PLC | 1,302,980 | ||||||||||||
146,859 | British Sky Broadcasting PLC | 1,280,484 | ||||||||||||
170,860 | ICAP PLC | 1,135,579 | ||||||||||||
222,768 | Prudential PLC | 2,023,492 | ||||||||||||
133,723 | Smith & Nephew PLC | 1,182,093 | ||||||||||||
58,403 | Standard Chartered PLC | 1,432,746 |
See Accompanying Notes to Financial Statements
143
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
United Kingdom (continued) | ||||||||||||||
251,988 | Tesco PLC | $ | 1,680,182 | |||||||||||
80,168 | Vedanta Resources PLC | 2,743,059 | ||||||||||||
16,854,258 | ||||||||||||||
Total Common Stock (Cost $97,494,007) | 106,901,909 | |||||||||||||
EXCHANGE-TRADED FUNDS: 1.4% | ||||||||||||||
Developed Markets: 1.1% | ||||||||||||||
21,879 | iShares MSCI EAFE Index Fund | 1,166,151 | ||||||||||||
1,166,151 | ||||||||||||||
Emerging Markets: 0.3% | ||||||||||||||
9,348 | @ | iShares MSCI Emerging Markets Index Fund | 351,111 | |||||||||||
351,111 | ||||||||||||||
Total Exchange-Traded Funds (Cost $1,535,870) | 1,517,262 | |||||||||||||
Total Long-Term Investments (Cost $99,029,877) | 108,419,171 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
SHORT-TERM INVESTMENTS: 3.4% | ||||||||||||||
Securities Lending CollateralCC: 3.4% | ||||||||||||||
$ | 3,653,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 3,653,000 | ||||||||||
79,764 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B (1)(2) | 63,811 | ||||||||||||
Total Short-Term Investments (Cost $3,732,764) | 3,716,811 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $102,762,641)* | 103.1 | % | $ | 112,135,982 | ||||||||||
Other Assets and Liabilities - Net | (3.1 | ) | (3,398,610 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 108,737,372 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) | |
to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | ||
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $108,685,473. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 11,339,278 | ||
Gross Unrealized Depreciation | (7,888,769 | ) | ||
Net Unrealized Appreciation | $ | 3,450,509 | ||
Percentage of | ||||
Industry | Net Assets | |||
Apparel | 1.4 | % | ||
Auto Manufacturers | 1.2 | |||
Banks | 11.6 | |||
Beverages | 1.1 | |||
Biotechnology | 1.5 | |||
Chemicals | 2.5 | |||
Commercial Services | 1.1 | |||
Computers | 2.3 | |||
Distribution/Wholesale | 1.7 | |||
Diversified Financial Services | 2.5 | |||
Electric | 2.0 | |||
Electrical Components & Equipment | 2.7 | |||
Electronics | 1.5 | |||
Engineering & Construction | 2.2 | |||
Food | 2.8 | |||
Healthcare — Products | 1.1 | |||
Insurance | 6.3 | |||
Internet | 4.0 | |||
Machinery — Construction & Mining | 1.1 | |||
Machinery — Diversified | 1.4 | |||
Media | 2.5 | |||
Mining | 10.2 | |||
Oil & Gas | 7.7 | |||
Oil & Gas Services | 1.0 | |||
Pharmaceuticals | 5.2 | |||
Real Estate | 2.6 | |||
Retail | 6.4 | |||
Semiconductors | 3.1 | |||
Software | 3.3 | |||
Telecommunications | 4.3 | |||
Other Long-Term Investments | 1.4 | |||
Short-Term Investments | 3.4 | |||
Other Assets and Liabilities — Net | (3.1 | ) | ||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
144
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Capital Appreciation Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 5,530,951 | $ | — | $ | 5,530,951 | ||||||||
Belgium | — | 1,200,563 | — | 1,200,563 | ||||||||||||
Brazil | 3,862,268 | 1,784,709 | — | 5,646,977 | ||||||||||||
Canada | 7,095,397 | — | — | 7,095,397 | ||||||||||||
China | 1,147,332 | 7,424,798 | — | 8,572,130 | ||||||||||||
Denmark | — | 3,155,275 | — | 3,155,275 | ||||||||||||
France | 1,117,963 | 7,983,160 | — | 9,101,123 | ||||||||||||
Germany | 1,196,260 | 4,788,712 | — | 5,984,972 | ||||||||||||
Hong Kong | — | 6,375,766 | — | 6,375,766 | ||||||||||||
India | 2,987,143 | — | — | 2,987,143 | ||||||||||||
Israel | 1,215,356 | — | — | 1,215,356 | ||||||||||||
Italy | — | 1,135,407 | — | 1,135,407 | ||||||||||||
Japan | — | 10,920,401 | — | 10,920,401 | ||||||||||||
Luxembourg | 1,545,822 | — | — | 1,545,822 | ||||||||||||
Mexico | 1,212,572 | — | — | 1,212,572 | ||||||||||||
Russia | — | 1,346,425 | — | 1,346,425 | ||||||||||||
South Africa | — | 1,086,721 | — | 1,086,721 | ||||||||||||
South Korea | 1,691,841 | — | — | 1,691,841 | ||||||||||||
Spain | 17,083 | 4,512,317 | — | 4,529,400 | ||||||||||||
Sweden | — | 1,191,823 | — | 1,191,823 | ||||||||||||
Switzerland | 1,245,522 | 7,276,064 | — | 8,521,586 | ||||||||||||
United Kingdom | — | 16,854,258 | — | 16,854,258 | ||||||||||||
Total Common Stock | 24,334,559 | 82,567,350 | — | 106,901,909 | ||||||||||||
Exchange-Traded Funds | 1,517,262 | — | — | 1,517,262 | ||||||||||||
Short-Term Investments | 3,653,000 | 63,811 | — | 3,716,811 | ||||||||||||
Total Investments, at value | $ | 29,504,821 | $ | 82,631,161 | $ | — | $ | 112,135,982 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
145
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 48.8% | ||||||||||||||
Australia: 0.9% | ||||||||||||||
618,000 | Lend Lease Corp., Ltd. | $ | 5,122,673 | |||||||||||
5,122,673 | ||||||||||||||
Austria: 0.4% | ||||||||||||||
393,120 | @ | Immoeast Immobilien Anlagen AG | 2,075,173 | |||||||||||
2,075,173 | ||||||||||||||
Brazil: 1.8% | ||||||||||||||
514,800 | @ | BR Malls Participacoes SA | 5,520,307 | |||||||||||
500,500 | PDG Realty SA Empreendimentos e Participacoes | 4,176,516 | ||||||||||||
9,696,823 | ||||||||||||||
Canada: 0.2% | ||||||||||||||
99,250 | @ | Brookfield Properties Co. | 1,008,380 | |||||||||||
1,008,380 | ||||||||||||||
China: 0.4% | ||||||||||||||
2,792,000 | Kwg Property Holding, Ltd. | 2,002,840 | ||||||||||||
2,002,840 | ||||||||||||||
Finland: 0.0% | ||||||||||||||
81,160 | @ | Sponda OYJ | 290,803 | |||||||||||
290,803 | ||||||||||||||
Hong Kong: 22.5% | ||||||||||||||
2,331,065 | Cheung Kong Holdings, Ltd. | 29,584,235 | ||||||||||||
1,221,700 | Great Eagle Holding Co. | 3,222,702 | ||||||||||||
930,700 | Hang Lung Group, Ltd. | 4,665,321 | ||||||||||||
2,113,900 | Hang Lung Properties, Ltd. | 7,988,790 | ||||||||||||
983,000 | Henderson Land Development Co., Ltd. | 6,949,505 | ||||||||||||
1,660,600 | Hongkong Land Holdings, Ltd. | 7,839,047 | ||||||||||||
1,338,000 | Kerry Properties, Ltd. | 7,460,350 | ||||||||||||
2,575,000 | @ | New World China Land, Ltd. | 1,023,095 | |||||||||||
3,401,500 | Shui On Land, Ltd. | 2,061,782 | ||||||||||||
1,097,700 | Sino Land Co. | 2,087,791 | ||||||||||||
2,485,500 | Sun Hung Kai Properties, Ltd. | 37,656,583 | ||||||||||||
1,199,350 | Wharf Holdings, Ltd. | 6,480,228 | ||||||||||||
1,192,000 | Wheelock & Co., Ltd. | 3,829,610 | ||||||||||||
120,849,039 | ||||||||||||||
India: 0.1% | ||||||||||||||
382,800 | Unitech, Ltd. (Global Instrument, Issuer: Macquarie Group, Ltd.) | 670,399 | ||||||||||||
670,399 | ||||||||||||||
Japan: 13.0% | ||||||||||||||
216,200 | Aeon Mall Co., Ltd. | 4,530,322 | ||||||||||||
65,300 | Daito Trust Construction Co., Ltd. | 2,714,286 | ||||||||||||
530,400 | @ | Daiwa House Industry Co., Ltd. | 5,666,559 | |||||||||||
1,269,700 | Mitsubishi Estate Co., Ltd. | 19,178,710 | ||||||||||||
1,412,077 | Mitsui Fudosan Co., Ltd. | 22,847,424 | ||||||||||||
770,900 | Sumitomo Realty & Development Co., Ltd. | 14,617,347 | ||||||||||||
69,554,648 | ||||||||||||||
Luxembourg: 0.4% | ||||||||||||||
202,250 | GAGFAH SA | 1,923,633 | ||||||||||||
1,923,633 | ||||||||||||||
Macau: 0.5% | ||||||||||||||
2,271,200 | @ | Wynn Macau, Ltd. | 2,921,714 | |||||||||||
2,921,714 | ||||||||||||||
Norway: 0.9% | ||||||||||||||
2,422,700 | @ | Norwegian Property ASA | 4,594,941 | |||||||||||
4,594,941 | ||||||||||||||
Philippines: 0.3% | ||||||||||||||
6,727,200 | Ayala Land, Inc. | 1,454,579 | ||||||||||||
1,454,579 | ||||||||||||||
Singapore: 2.1% | ||||||||||||||
3,272,100 | CapitaLand, Ltd. | 9,488,712 | ||||||||||||
223,000 | City Developments, Ltd. | 1,562,394 | ||||||||||||
11,051,106 | ||||||||||||||
Sweden: 0.7% | ||||||||||||||
285,047 | Castellum AB | 2,653,203 | ||||||||||||
128,293 | Hufvudstaden AB | 1,010,207 | ||||||||||||
3,663,410 | ||||||||||||||
Switzerland: 1.1% | ||||||||||||||
18,380 | @ | PSP Swiss Property AG | 1,031,402 | |||||||||||
92,490 | @ | Swiss Prime Site AG | 5,091,191 | |||||||||||
6,122,593 | ||||||||||||||
Thailand: 0.2% | ||||||||||||||
1,730,000 | I | Central Pattana PCL | 1,108,813 | |||||||||||
1,108,813 | ||||||||||||||
United Kingdom: 3.3% | ||||||||||||||
512,070 | @,I | Atrium European Real Estate, Ltd. | 3,346,716 | |||||||||||
302,160 | @ | Grainger PLC | 1,419,932 | |||||||||||
242,000 | Helical Bar PLC | 1,312,388 | ||||||||||||
4,875,400 | @,I | LXB Retail Properties PLC | 8,181,812 | |||||||||||
1,324,970 | I | Safestore Holdings, Ltd. | 3,078,047 | |||||||||||
90,400 | @,I | Yatra Capital, Ltd. | 532,148 | |||||||||||
17,871,043 | ||||||||||||||
Total Common Stock (Cost $243,440,780) | 261,982,610 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 46.1% | ||||||||||||||
Australia: 15.4% | ||||||||||||||
2,400,400 | CFS Retail Property Trust | 4,124,575 | ||||||||||||
3,293,700 | Challenger Diversified Property Group | 1,394,601 | ||||||||||||
1,548,100 | Charter Hall Group | 746,815 | ||||||||||||
13,277,057 | Dexus Property Group | 9,380,455 | ||||||||||||
11,366,100 | GPT Group | 5,800,463 | ||||||||||||
14,814,522 | Macquarie Goodman Group | 7,943,671 | ||||||||||||
4,344,317 | Mirvac Group | 5,688,082 | ||||||||||||
4,020,100 | Stockland | 13,354,456 | ||||||||||||
3,124,639 | S | Westfield Group | 33,852,461 | |||||||||||
82,285,579 | ||||||||||||||
Canada: 1.7% | ||||||||||||||
99,700 | @ | Calloway Real Estate Investment Trust | 1,629,034 | |||||||||||
62,500 | Canadian Real Estate Investment Trust | 1,475,787 | ||||||||||||
193,700 | @ | Cominar Real Estate Investment Trust | 3,227,587 | |||||||||||
166,400 | RioCan Real Estate Investment Trust | 2,820,365 | ||||||||||||
9,152,773 | ||||||||||||||
France: 10.3% | ||||||||||||||
9,738 | Fonciere Des Regions | 1,073,337 | ||||||||||||
27,130 | Gecina SA | 2,886,135 | ||||||||||||
20,290 | ICADE | 2,136,131 | ||||||||||||
252,883 | Klepierre | 10,482,084 | ||||||||||||
132,542 | Mercialys | 5,341,700 | ||||||||||||
150,952 | Unibail | 33,427,641 | ||||||||||||
55,347,028 | ||||||||||||||
See Accompanying Notes to Financial Statements
146
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Hong Kong: 1.0% | ||||||||||||||
2,395,200 | Link Real Estate Investment Trust | $ | 5,393,974 | |||||||||||
5,393,974 | ||||||||||||||
Japan: 4.7% | ||||||||||||||
460 | @ | Frontier Real Estate Investment Corp. | 3,466,628 | |||||||||||
70 | @ | Japan Excellent, Inc. | 328,591 | |||||||||||
318 | Japan Logistics Fund, Inc. | 2,416,239 | ||||||||||||
473 | Japan Real Estate Investment Corp. | 3,774,123 | ||||||||||||
169 | Japan Retail Fund Investment Corp. | 794,523 | ||||||||||||
924 | Kenedix Realty Investment Corp. | 2,649,943 | ||||||||||||
171 | Nippon Accommodations Fund, Inc. | 944,840 | ||||||||||||
307 | Nomura Real Estate Office Fund, Inc. | 1,896,871 | ||||||||||||
683 | Orix JREIT, Inc. | 3,128,326 | ||||||||||||
524 | Tokyu Real Estate Investment Trust, Inc. | 2,633,722 | ||||||||||||
66 | Top REIT, Inc. | 292,210 | ||||||||||||
484 | @ | United Urban Investment Corp. | 2,823,292 | |||||||||||
25,149,308 | ||||||||||||||
Netherlands: 2.0% | ||||||||||||||
109,297 | Corio NV | 7,411,247 | ||||||||||||
50,513 | @,S | Eurocommercial Properties NV | 2,188,341 | |||||||||||
15,980 | Vastned Retail NV | 1,065,659 | ||||||||||||
10,665,247 | ||||||||||||||
Singapore: 1.5% | ||||||||||||||
4,735,453 | Ascendas Real Estate Investment Trust | 6,155,075 | ||||||||||||
1,786,483 | CapitaMall Trust | 2,006,715 | ||||||||||||
8,161,790 | ||||||||||||||
United Kingdom: 9.5% | ||||||||||||||
1,401,247 | British Land Co. PLC | 10,822,701 | ||||||||||||
107,810 | Derwent Valley Holdings PLC | 2,196,028 | ||||||||||||
1,116,428 | Hammerson PLC | 7,405,255 | ||||||||||||
2,065,076 | Hansteen Holdings PLC | 2,990,047 | ||||||||||||
1,720,681 | Land Securities Group PLC | 18,617,924 | ||||||||||||
770,093 | Liberty International PLC | 5,684,587 | ||||||||||||
371,924 | Segro PLC | 2,143,259 | ||||||||||||
178,733 | Shaftesbury PLC | 1,101,029 | ||||||||||||
50,960,830 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $231,792,028) | 247,116,529 | |||||||||||||
MUTUAL FUNDS: 1.1% | ||||||||||||||
Australia: 0.7% | ||||||||||||||
7,021,900 | ** | ING Office Fund | 3,704,870 | |||||||||||
3,704,870 | ||||||||||||||
Luxembourg: 0.4% | ||||||||||||||
336,414 | Prologis European Properties | 2,170,229 | ||||||||||||
2,170,229 | ||||||||||||||
Total Mutual Funds (Cost $5,314,080) | 5,875,099 | |||||||||||||
RIGHTS: 0.0% | ||||||||||||||
Hong Kong: 0.0% | ||||||||||||||
1,287,500 | New World China Land, Ltd. | 88,046 | ||||||||||||
Total Rights (Cost $-) | 88,046 | |||||||||||||
Total Long-Term Investments (Cost $480,546,888) | 515,062,284 | |||||||||||||
SHORT-TERM INVESTMENTS: 2.7% | ||||||||||||||
Affiliated Mutual Fund: 2.7% | ||||||||||||||
14,529,285 | ING Institutional Prime Money Market Fund — Class I | 14,529,285 | ||||||||||||
Total Short-Term Investments (Cost $14,529,285) | 14,529,285 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $495,076,173)* | 98.7 | % | $ | 529,591,569 | ||||||||||
Other Assets and Liabilities - Net | 1.3 | 7,137,202 | ||||||||||||
Net Assets | 100.0 | % | $ | 536,728,771 | ||||||||||
@ | Non-income producing security | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
I | Illiquid security | |
** | Investment in affiliate | |
* | Cost for federal income tax purposes is $582,157,964. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 39,178,264 | ||
Gross Unrealized Depreciation | (91,744,659 | ) | ||
Net Unrealized Depreciation | $ | (52,566,395 | ) | |
Percentage of | ||||
Industry | Net Assets | |||
Apartments | 0.2 | % | ||
Closed-End Funds | 0.4 | |||
Diversified | 32.0 | |||
Engineering & Construction | 0.1 | |||
Holding Companies — Diversified | 1.2 | |||
Home Builders | 1.1 | |||
Lodging | 0.8 | |||
Office Property | 2.6 | |||
Open-End Funds | 0.7 | |||
Operations/Development | 0.6 | |||
Real Estate | 45.0 | |||
Shopping Centers | 10.3 | |||
Storage/Warehousing | 0.6 | |||
Warehouse/Industrial | 0.4 | |||
Short-Term Investments | 2.7 | |||
Other Assets and Liabilities — Net | 1.3 | |||
Net Assets | 100.0 | % | ||
See Accompanying Notes to Financial Statements
147
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Real Estate Fund
as of October 31, 2009 (continued)
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 5,122,673 | $ | — | $ | 5,122,673 | ||||||||
Austria | — | 2,075,173 | — | 2,075,173 | ||||||||||||
Brazil | 9,696,823 | — | — | 9,696,823 | ||||||||||||
Canada | 1,008,380 | — | — | 1,008,380 | ||||||||||||
China | — | 2,002,840 | — | 2,002,840 | ||||||||||||
Finland | — | 290,803 | — | 290,803 | ||||||||||||
Hong Kong | — | 120,849,039 | — | 120,849,039 | ||||||||||||
India | — | 670,399 | — | 670,399 | ||||||||||||
Japan | — | 69,554,648 | — | 69,554,648 | ||||||||||||
Luxembourg | — | 1,923,633 | — | 1,923,633 | ||||||||||||
Macau | 2,921,714 | — | — | 2,921,714 | ||||||||||||
Norway | — | 4,594,941 | — | 4,594,941 | ||||||||||||
Philippines | — | 1,454,579 | — | 1,454,579 | ||||||||||||
Singapore | — | 11,051,106 | — | 11,051,106 | ||||||||||||
Sweden | — | 3,663,410 | — | 3,663,410 | ||||||||||||
Switzerland | — | 6,122,593 | — | 6,122,593 | ||||||||||||
Thailand | — | 1,108,813 | — | 1,108,813 | ||||||||||||
United Kingdom | 8,713,960 | 9,157,083 | — | 17,871,043 | ||||||||||||
Total Common Stock | 22,340,877 | 239,641,733 | — | 261,982,610 | ||||||||||||
Real Estate Investment Trusts | 9,152,773 | 237,963,756 | — | 247,116,529 | ||||||||||||
Mutual Funds | — | 5,875,099 | — | 5,875,099 | ||||||||||||
Rights | 88,046 | — | — | 88,046 | ||||||||||||
Short-Term Investments | 14,529,285 | — | — | 14,529,285 | ||||||||||||
Total Investments, at value | $ | 46,110,981 | $ | 483,480,588 | $ | — | $ | 529,591,569 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
148
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 95.6% | ||||||||||||||
Argentina: 0.1% | ||||||||||||||
9,400 | @,L | Grupo Financiero Galicia SA ADR | $ | 54,520 | ||||||||||
16,886 | @ | Telecom Argentina SA ADR | 285,373 | |||||||||||
339,893 | ||||||||||||||
Australia: 4.6% | ||||||||||||||
68,400 | @ | Aditya Birla Minerals, Ltd. | 76,656 | |||||||||||
24,253 | AJ Lucas Group, Ltd. | 93,515 | ||||||||||||
269,094 | Amcor, Ltd. | 1,385,703 | ||||||||||||
174,924 | Ansell, Ltd. | 1,616,255 | ||||||||||||
139,123 | @ | Aquarius Platinum, Ltd. | 596,619 | |||||||||||
980,702 | @ | Australian Worldwide Exploration, Ltd. | 2,248,042 | |||||||||||
229,000 | @ | AWB, Ltd. | 250,051 | |||||||||||
42,540 | Bradken, Ltd. | 233,957 | ||||||||||||
26,098 | @ | Caltex Australia, Ltd. | 236,621 | |||||||||||
119,510 | Challenger Financial Services Group, Ltd. | 393,001 | ||||||||||||
229,426 | Computershare, Ltd. | 2,227,366 | ||||||||||||
136,947 | Crane Group, Ltd. | 1,103,530 | ||||||||||||
5,104 | @ | Eircom Holdings, Ltd. | 2,359 | |||||||||||
3,031,116 | @ | Elders, Ltd. | 497,123 | |||||||||||
689,000 | Emeco Holdings, Ltd. | 532,773 | ||||||||||||
13,500 | Energy Resources of Australia, Ltd. | 278,807 | ||||||||||||
17,482 | @ | Felix Resources, Ltd. | 1,533 | |||||||||||
103,223 | Goodman Fielder, Ltd. | 148,069 | ||||||||||||
494,609 | @ | Iluka Resources, Ltd. | 1,532,314 | |||||||||||
457,316 | John Fairfax Holdings, Ltd. | 648,089 | ||||||||||||
164,900 | @ | Kagara Zinc, Ltd. | 145,337 | |||||||||||
49,400 | Kingsgate Consolidated, Ltd. | 333,216 | ||||||||||||
28,348 | MacArthur Coal, Ltd. | 212,343 | ||||||||||||
851,194 | Macmahon Holdings, Ltd. | 424,853 | ||||||||||||
391,938 | @ | MEO Australia, Ltd. | 193,802 | |||||||||||
24,800 | New Hope Corp., Ltd. | 92,492 | ||||||||||||
253,351 | NRW Holdings, Ltd. | 363,998 | ||||||||||||
111,936 | @ | Pan Pacific Petroleum NL | 41,962 | |||||||||||
10,164 | I,X | Programmed Maintenance Services, Ltd. | 37,054 | |||||||||||
36,239 | RCR Tomlinson, Ltd. | 36,785 | ||||||||||||
745,209 | Sigma Pharmaceuticals, Ltd. | 623,799 | ||||||||||||
163,189 | Sonic Healthcare, Ltd. | 2,037,344 | ||||||||||||
574,854 | @ | Transpacific Industries Group, Ltd. | 768,567 | |||||||||||
65,405 | UXC, Ltd. | 50,043 | ||||||||||||
40,014 | Watpac, Ltd. | 52,540 | ||||||||||||
19,516,518 | ||||||||||||||
Austria: 1.8% | ||||||||||||||
46,102 | Andritz AG | 2,538,823 | ||||||||||||
29,000 | Kapsch TrafficCom AG | 1,019,619 | ||||||||||||
624 | Mayr Melnhof Karton AG | 58,789 | ||||||||||||
39,585 | Oesterreichische Post AG | 1,155,313 | ||||||||||||
40,000 | I | Rosenbauer International AG | 1,546,697 | |||||||||||
24,300 | Schoeller-Bleckmann Oilfield Equipment AG | 1,132,690 | ||||||||||||
7,444 | Semperit AG Holding | 262,323 | ||||||||||||
7,714,254 | ||||||||||||||
Belgium: 1.8% | ||||||||||||||
134,000 | @ | AGFA-Gevaert NV | 807,181 | |||||||||||
11,000 | Bekaert SA | 1,414,689 | ||||||||||||
3,008 | Compagnie d’Entreprises CFE | 171,236 | ||||||||||||
73,066 | @ | Deceuninck Plastics | 149,096 | |||||||||||
1,768 | D’ieteren SA | 640,917 | ||||||||||||
19,000 | EVS Broadcast Equipment SA | 1,397,147 | ||||||||||||
3,954 | Ion Beam Applications | 54,005 | ||||||||||||
3,900 | Mobistar SA | 267,921 | ||||||||||||
65,529 | @ | Nyrstar | 763,838 | |||||||||||
53,500 | @ | Telenet Group Holding NV | 1,425,950 | |||||||||||
20,594 | Tessenderlo Chemie NV | 754,535 | ||||||||||||
7,846,515 | ||||||||||||||
Bermuda: 0.3% | ||||||||||||||
435,982 | @ | Dockwise, Ltd. | 641,344 | |||||||||||
848,000 | Regal Hotels International Holdings, Ltd. | 317,007 | ||||||||||||
13,981 | @ | Signet Jewelers, Ltd. | 353,015 | |||||||||||
1,311,366 | ||||||||||||||
Canada: 4.0% | ||||||||||||||
10,800 | AGF Management, Ltd. | 160,895 | ||||||||||||
107,972 | @ | Alamos Gold, Inc. | 862,140 | |||||||||||
187,000 | @ | Alimentation Couche-Tard, Inc. | 3,281,854 | |||||||||||
2,500 | @ | Bird Construction Income Fund | 75,228 | |||||||||||
112,500 | @ | Capstone Mining Corp. | 303,590 | |||||||||||
291,766 | @ | CGI Group, Inc. — Class A | 3,564,648 | |||||||||||
74,561 | @ | Chemtrade Logistics Income Fund | 650,484 | |||||||||||
150,400 | @ | Compton Petroleum Corp. | 152,895 | |||||||||||
42,800 | @ | Consolidated Thompson Iron Mines, Ltd. | 197,773 | |||||||||||
15,300 | @ | Corus Entertainment, Inc. | 251,548 | |||||||||||
16,200 | @ | Cott Corp. | 128,157 | |||||||||||
54,200 | Dorel Industries, Inc. | 1,454,116 | ||||||||||||
22,700 | @ | Enerflex Systems Income Fund | 298,946 | |||||||||||
28,300 | @ | Flint Energy Services, Ltd. | 307,310 | |||||||||||
9,800 | @ | Garda World Security Corp. | 85,225 | |||||||||||
8,900 | @ | Home Capital Group Inc. | 300,217 | |||||||||||
11,400 | @ | Iamgold Corp. | 151,185 | |||||||||||
15,400 | @ | Keyera Facilities Income Fund | 282,368 | |||||||||||
5,100 | Linamar Corp. | 71,170 | ||||||||||||
56,200 | @ | Mercator Minerals, Ltd. | 126,730 | |||||||||||
6,800 | Methanex Corp. | 117,266 | ||||||||||||
8,300 | MI Developments, Inc. | 127,820 | ||||||||||||
14,946 | @ | Niko Resources, Ltd. | 1,209,990 | |||||||||||
149,000 | @ | Northgate Minerals Corp. | 381,433 | |||||||||||
209,243 | @ | OceanaGold Corp. | 210,676 | |||||||||||
25,500 | @ | Pacific Rubiales Energy Corp. | 310,369 | |||||||||||
12,000 | Quebecor, Inc. | 245,201 | ||||||||||||
7,900 | Russel Metals, Inc. | 115,428 | ||||||||||||
106,200 | @ | SEMAFO, Inc. | 321,922 | |||||||||||
38,958 | @ | Sino-Forest Corp. | 548,339 | |||||||||||
110,000 | @ | Western Canadian Coal Co. | 284,645 | |||||||||||
20,600 | @ | Westjet Airlines, Ltd. | 208,275 | |||||||||||
17,500 | Westshore Terminals Income Fund | 206,044 | ||||||||||||
16,993,887 | ||||||||||||||
China: 0.9% | ||||||||||||||
175,000 | Beijing Jingkelong Co., Ltd. | 129,695 | ||||||||||||
1,561,000 | @ | Centron Telecom International Holdings, Ltd. | 443,379 | |||||||||||
4,558,000 | @ | China Southern Airlines Co., Ltd. | 1,325,795 | |||||||||||
496,000 | China Zaino International, Ltd. | 87,261 | ||||||||||||
268,000 | People’s Food Holdings, Ltd. | 126,395 | ||||||||||||
250,000 | Qingling Motors Co., Ltd. | 52,579 | ||||||||||||
13,100 | @ | Shanda Games, Ltd. ADR | 130,476 | |||||||||||
1,776,000 | SinoCom Software Group, Ltd. | 197,605 | ||||||||||||
23,131 | @ | Sohucom, Inc. | 1,286,084 | |||||||||||
567,000 | SunVic Chemical Holdings, Ltd. | 63,778 | ||||||||||||
3,843,047 | ||||||||||||||
Cyprus: 0.0% | ||||||||||||||
35,000 | ProSafe SE | 182,218 | ||||||||||||
182,218 | ||||||||||||||
Denmark: 1.1% | ||||||||||||||
21,840 | East Asiatic Co., Ltd. A/S | 789,028 | ||||||||||||
16,500 | H Lundbeck A/S | 319,570 | ||||||||||||
7,262 | @ | Royal Unibrew A/S | 211,264 |
See Accompanying Notes to Financial Statements
149
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Denmark (continued) | ||||||||||||||
9,335 | @ | Sydbank A/S | $ | 228,313 | ||||||||||
17,801 | @ | TK Development | 83,982 | |||||||||||
10,000 | @ | Topdanmark A/S | 1,441,886 | |||||||||||
24,000 | TrygVesta A/S | 1,729,326 | ||||||||||||
4,803,369 | ||||||||||||||
Finland: 0.5% | ||||||||||||||
47,000 | Elisa OYJ | 910,211 | ||||||||||||
4,266 | HKScan Oyj | 55,322 | ||||||||||||
20,975 | Huhtamaki Oyj | 283,513 | ||||||||||||
47,438 | @ | M-Real OYJ | 68,911 | |||||||||||
60,344 | Oriola-KD OYJ | 318,208 | ||||||||||||
13,945 | Tietoenator OYJ | 278,508 | ||||||||||||
1,914,673 | ||||||||||||||
France: 6.4% | ||||||||||||||
70,000 | @ | Alten | 1,756,104 | |||||||||||
4,573 | April Group | 171,495 | ||||||||||||
6,299 | Arkema | 240,463 | ||||||||||||
3,302 | Boiron SA | 136,036 | ||||||||||||
8,814 | Bonduelle S.C.A. | 1,010,468 | ||||||||||||
1,105 | @ | Bongrain SA | 83,348 | |||||||||||
48,000 | Bourbon SA | 1,996,273 | ||||||||||||
44,928 | @ | Bull SA | 187,797 | |||||||||||
9,306 | @ | Club Mediterranee SA | 188,780 | |||||||||||
3,500 | CNP Assurances | 338,214 | ||||||||||||
2,661 | Compagnie des Alpes | 97,906 | ||||||||||||
4,700 | Compagnie Generale des Etablissements Michelin | 348,162 | ||||||||||||
51,824 | Derichebourg | 254,438 | ||||||||||||
111,255 | Groupe Eurotunnel SA | 1,099,810 | ||||||||||||
15,247 | Groupe Steria SCA | 455,500 | ||||||||||||
190,547 | Havas SA | 724,219 | ||||||||||||
34,000 | Ipsen | 1,732,355 | ||||||||||||
30,000 | IPSOS | 918,527 | ||||||||||||
11,200 | Lagardere SCA | 506,009 | ||||||||||||
4,023 | @ | Maximiles | 41,393 | |||||||||||
27,000 | @ | Meetic | 790,494 | |||||||||||
9,500 | Neopost SA | 831,382 | ||||||||||||
7,158 | NetGem SA | 32,999 | ||||||||||||
2,322 | Nexans SA | 163,966 | ||||||||||||
24,300 | PagesJaunes Groupe SA | 297,747 | ||||||||||||
5,700 | Publicis Groupe | 216,586 | ||||||||||||
96,978 | Rallye SA | 3,292,588 | ||||||||||||
6,507 | @ | Recylex SA | 83,569 | |||||||||||
13,380 | @ | Rhodia SA | 197,155 | |||||||||||
14,363 | Rubis | 1,318,636 | ||||||||||||
2,691 | Sa des Ciments Vicat | 223,265 | ||||||||||||
20,000 | Saft Groupe SA | 1,038,420 | ||||||||||||
7,808 | Scor SA | 198,720 | ||||||||||||
6,188 | SEB SA | 344,413 | ||||||||||||
24,300 | @ | SeLoger.com | 851,029 | |||||||||||
2,900 | Societe BIC SA | 201,271 | ||||||||||||
4,718 | Sopra Group SA | 337,953 | ||||||||||||
32,000 | @ | Store Electronic | 557,797 | |||||||||||
37,135 | Sword Group | 1,286,739 | ||||||||||||
3,200 | Technip SA | 200,762 | ||||||||||||
58,124 | @ | Valeo SA | 1,577,825 | |||||||||||
6,800 | Virbac SA | 639,866 | ||||||||||||
8,450 | Zodiac SA | 285,023 | ||||||||||||
27,255,502 | ||||||||||||||
Germany: 6.7% | ||||||||||||||
6,300 | Adidas AG | 291,693 | ||||||||||||
85,000 | @ | Air Berlin PLC | 429,555 | |||||||||||
28,000 | Bauer AG | 1,109,839 | ||||||||||||
60,095 | Bechtle AG | 1,428,747 | ||||||||||||
40,750 | Bilfinger Berger AG | 2,624,031 | ||||||||||||
10,000 | @ | Centrotherm Photovoltaics AG | 456,505 | |||||||||||
59,400 | Demag Cranes AG | 2,058,652 | ||||||||||||
6,700 | @ | Dialog Semiconductor PLC | 58,174 | |||||||||||
6,996 | Duerr AG | 149,887 | ||||||||||||
6,253 | Fresenius Medical Care AG & Co. KGaA | 303,467 | ||||||||||||
6,681 | Gesco AG | 369,600 | ||||||||||||
35,000 | GFK SE | 1,107,283 | ||||||||||||
72,164 | Gildemeister AG | 1,014,213 | ||||||||||||
31,064 | Grenkeleasing AG | 1,202,979 | ||||||||||||
6,950 | @ | Hannover Rueckversicheru — Reg | 313,320 | |||||||||||
20,000 | I | Hawesko Holding AG | 559,003 | |||||||||||
113,644 | @ | Infineon Technologies AG | 511,733 | |||||||||||
11,543 | @ | Kloeckner & Co. AG | 253,086 | |||||||||||
5,341 | @ | Koenig & Bauer AG | 91,780 | |||||||||||
6,700 | Lanxess | 210,034 | ||||||||||||
127,915 | Medion AG | 1,341,327 | ||||||||||||
28,300 | @ | Morphosys AG | 741,534 | |||||||||||
116,008 | MTU Aero Engines Holding AG | 5,271,545 | ||||||||||||
3,613 | OHB Technology AG | 46,340 | ||||||||||||
15,000 | @ | Open Business Club AG | 775,927 | |||||||||||
34,000 | Rheinmetall AG | 1,848,198 | ||||||||||||
55,007 | @ | SFC Smart Fuel Cell AG | 594,666 | |||||||||||
30,000 | Symrise | 543,923 | ||||||||||||
261 | Takkt AG | 2,876 | ||||||||||||
18,563 | Tipp24 SE | 756,134 | ||||||||||||
70,120 | Tognum AG | 1,071,651 | ||||||||||||
26,972 | @ | United Internet AG | 351,187 | |||||||||||
55,000 | Wirecard AG | 715,484 | ||||||||||||
1,364 | Wuestenrot & Wuerttembergische | 30,914 | ||||||||||||
28,635,287 | ||||||||||||||
Greece: 0.3% | ||||||||||||||
97,186 | Aegean Airlines SA | 594,964 | ||||||||||||
60,000 | @ | Jumbo SA | 750,191 | |||||||||||
1,345,155 | ||||||||||||||
Hong Kong: 5.0% | ||||||||||||||
11,242,000 | @ | Beijing Enterprises Water Group, Ltd. | 2,741,527 | |||||||||||
26,620 | @ | CDC Corp. — Class A | 62,025 | |||||||||||
5,848,000 | Champion Technology Holdings, Ltd. | 193,656 | ||||||||||||
128,000 | China Everbright, Ltd. | 301,746 | ||||||||||||
319,000 | @ | China Insurance International Holdings Co., Ltd. | 1,124,302 | |||||||||||
740,660 | I,X | China Resources Gas Group, Ltd. | 716,749 | |||||||||||
856,000 | @ | China Sci-Tech Holdings, Ltd. | 26,373 | |||||||||||
4,687,000 | Citic 1616 Holdings, Ltd. | 1,548,530 | ||||||||||||
189,000 | Citic Pacific, Ltd. | 487,073 | ||||||||||||
46,000 | Coslight Technology International Group, Ltd. | 91,397 | ||||||||||||
604,800 | @ | Dah Sing Banking Group, Ltd. | 838,523 | |||||||||||
45,600 | @ | DAH Sing Financial | 260,060 | |||||||||||
492,000 | Dickson Concepts International, Ltd. | 227,720 | ||||||||||||
1,076,000 | @ | DMX Technologies Group, Ltd. | 332,991 | |||||||||||
324,000 | @ | Dynamic Energy Holdings, Ltd. | 28,569 | |||||||||||
316,000 | First Pacific Co. | 186,606 | ||||||||||||
3,395,000 | @ | Genesis Energy Holdings, Ltd. | 96,722 | |||||||||||
5,605,840 | @ | Global Green Tech Group, Ltd. | 238,709 | |||||||||||
603,000 | Goldlion Holdings, Ltd. | 153,369 | ||||||||||||
100,000 | @ | Hkr International, Ltd. | 42,181 | |||||||||||
176,000 | Hung Hing Printing Group, Ltd. | 53,433 | ||||||||||||
543,000 | Hutchison Telecommunications Hong Kong Holdings Ltd | 93,503 | ||||||||||||
4,520,000 | Inspur International, Ltd. | 646,923 | ||||||||||||
106,000 | @ | Jinhui Holdings, Ltd. | 32,348 | |||||||||||
366,000 | @ | Johnson Electric Holdings, Ltd. | 160,750 | |||||||||||
118,500 | Kerry Properties, Ltd. | 660,726 | ||||||||||||
3,680,000 | Lai Fung Holdings, Ltd. | 122,329 | ||||||||||||
654,000 | @ | Lee & Man Paper Manufacturing, Ltd. | 1,289,768 | |||||||||||
750,000 | Luk Fook Holdings International, Ltd. | 434,599 |
See Accompanying Notes to Financial Statements
150
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Hong Kong (continued) | ||||||||||||||
164,500 | MTR Corp. | $ | 582,626 | |||||||||||
12,300 | @ | Nam Tai Electronics, Inc. | 68,265 | |||||||||||
492,000 | @ | Next Media, Ltd. | 62,592 | |||||||||||
136,000 | Noble Group, Ltd. | 248,547 | ||||||||||||
38,282 | @ | OM Holdings, Ltd. | 59,158 | |||||||||||
2,855,000 | Polytec Asset Holdings, Ltd. | 483,748 | ||||||||||||
200,508 | @ | RCG Holdings, Ltd./Hong Kong | 266,937 | |||||||||||
2,806,000 | SIM Technology Group, Ltd. | 460,096 | ||||||||||||
9,858,000 | Sinolink Worldwide Holdings | 1,891,064 | ||||||||||||
4,010,000 | Skyworth Digital Holdings, Ltd. | 2,262,362 | ||||||||||||
316,000 | @ | Strong Petrochemical Holdings, Ltd. | 74,207 | |||||||||||
1,671,000 | Techtronic Industries Co. | 1,342,307 | ||||||||||||
300,000 | Texwinca Holdings, Ltd. | 254,538 | ||||||||||||
21,249,654 | ||||||||||||||
Hungary: 0.1% | ||||||||||||||
3,775 | EGIS PLC | 397,965 | ||||||||||||
397,965 | ||||||||||||||
India: 1.7% | ||||||||||||||
216,321 | Allahabad Bank | 544,924 | ||||||||||||
100,638 | Apollo Tyres, Ltd. | 101,620 | ||||||||||||
180,536 | Bank of Baroda | 1,936,223 | ||||||||||||
105,910 | Bank of Maharashtra | 95,961 | ||||||||||||
147,774 | Canara Bank | 1,061,702 | ||||||||||||
169,896 | Central Bank Of India | 475,580 | ||||||||||||
12,618 | @ | Chennai Petroleum Corp., Ltd. | 56,349 | |||||||||||
83,741 | Dena Bank | 104,679 | ||||||||||||
23,498 | Indian Bank | 77,191 | ||||||||||||
90,126 | Oriental Bank of Commerce | 456,079 | ||||||||||||
92,932 | Punjab National Bank, Ltd. | 1,669,397 | ||||||||||||
342,628 | UCO Bank | 362,794 | ||||||||||||
35,927 | Union Bank of India | 198,243 | ||||||||||||
326,715 | Vijaya Bank | 301,547 | ||||||||||||
7,442,289 | ||||||||||||||
Indonesia: 0.0% | ||||||||||||||
81,500 | Gudang Garam Tbk PT | 119,889 | ||||||||||||
119,889 | ||||||||||||||
Ireland: 0.6% | ||||||||||||||
83,400 | @ | DCC PLC | 2,186,998 | |||||||||||
37,233 | Irish Life & Permanent PLC | 269,535 | ||||||||||||
23,900 | Smurfit Kappa Group PLC | 186,186 | ||||||||||||
2,642,719 | ||||||||||||||
Israel: 0.2% | ||||||||||||||
182,823 | @ | Bank Hapoalim BM | 667,441 | |||||||||||
54,000 | @ | Oridion Systems, Ltd. | 354,108 | |||||||||||
1,021,549 | ||||||||||||||
Italy: 2.8% | ||||||||||||||
47,700 | ACEA S.p.A. | 558,002 | ||||||||||||
107,788 | @ | Amplifon S.p.A. | 418,791 | |||||||||||
172,254 | @ | AS Roma S.p.A. | 197,094 | |||||||||||
20,760 | Autostrada Torino-Milano S.p.A. | 261,899 | ||||||||||||
190,000 | Azimut Holding S.p.A. | 2,292,415 | ||||||||||||
27,100 | Banca Popolare di Milano Scrl | 201,634 | ||||||||||||
80,000 | Buzzi Unicem S.p.A. RNC | 788,658 | ||||||||||||
369,000 | @ | CIR-Compagnie Industriali Riunite S.p.A. | 830,284 | |||||||||||
19,635 | @ | Danieli & Co. S.p.A. | 493,007 | |||||||||||
2,179 | @ | Engineering Ingegneria Informatica S.p.A. | 78,709 | |||||||||||
39,115 | Esprinet S.p.A. | 391,931 | ||||||||||||
54,720 | Impregilo S.p.A. | 186,872 | ||||||||||||
103,889 | @ | Indesit Co. S.p.A. | 1,177,521 | |||||||||||
98,071 | Maire Tecnimont S.p.A. | 406,320 | ||||||||||||
208,450 | @ | Natuzzi S.p.A. ADR | 662,871 | |||||||||||
8,306 | @ | Permasteelisa S.p.A. | 157,583 | |||||||||||
152,452 | Piaggio & C S.p.A. | 387,454 | ||||||||||||
6,897 | @ | Prima Industrie S.p.A. | 92,233 | |||||||||||
29,300 | Prysmian S.p.A. | 515,181 | ||||||||||||
53,064 | Recordati S.p.A. | 411,681 | ||||||||||||
731,518 | @ | Seat Pagine Gialle S.p.A. | 207,363 | |||||||||||
12,999 | Societa Iniziative Autostradali e Servizi S.p.A. | 115,068 | ||||||||||||
31,880 | @ | Sorin S.p.A. | 58,040 | |||||||||||
150,000 | Zignago Vetro S.p.A. | 870,825 | ||||||||||||
11,761,436 | ||||||||||||||
Japan: 20.7% | ||||||||||||||
58,000 | @ | Adores, Inc. | 120,840 | |||||||||||
5,900 | @ | Aeon Fantasy Co., Ltd. | 77,989 | |||||||||||
70,700 | Aica Kogyo Co., Ltd. | 676,372 | ||||||||||||
63,000 | @ | Aichi Machine Industry Co., Ltd. | 186,158 | |||||||||||
295,200 | @ | Allied Telesis Holdings KK | 154,636 | |||||||||||
11,400 | Aloka Co., Ltd. | 91,084 | ||||||||||||
5,000 | @ | Alpen Co., Ltd. | 92,168 | |||||||||||
2,900 | Arakawa Chemical Industries, Ltd. | 35,855 | ||||||||||||
3,900 | Arc Land Sakamoto Co., Ltd. | 47,672 | ||||||||||||
104,400 | Arcs Co., Ltd. | 1,533,691 | ||||||||||||
18,800 | @ | Argo Graphics, Inc. | 209,877 | |||||||||||
94,726 | @ | Arrk Corp. | 77,435 | |||||||||||
7,900 | @ | ASKUL Corp. | 155,122 | |||||||||||
11,400 | BML, Inc. | 306,060 | ||||||||||||
69,000 | @ | Calsonic Kansei Corp. | 186,588 | |||||||||||
11,300 | @ | Cawachi, Ltd. | 234,445 | |||||||||||
57,000 | Central Glass Co., Ltd. | 229,588 | ||||||||||||
6,700 | Century Leasing System, Inc. | 74,846 | ||||||||||||
956,000 | @ | Chori Co., Ltd. | 1,106,795 | |||||||||||
6,500 | Chubu Steel Plate Co., Ltd. | 41,779 | ||||||||||||
67,000 | Chuetsu Pulp & Paper Co., Ltd. | 132,470 | ||||||||||||
39,000 | Chugai Ro Co., Ltd. | 109,476 | ||||||||||||
201,000 | Chugoku Marine Paints, Ltd. | 1,409,777 | ||||||||||||
11,600 | Circle K Sunkus Co., Ltd. | 159,236 | ||||||||||||
17,400 | COMSYS Holdings Corp. | 171,969 | ||||||||||||
8,800 | @ | Cosmos Pharmaceutical Corp. | 226,432 | |||||||||||
192,000 | @ | Daido Steel Co., Ltd. | 653,489 | |||||||||||
73,000 | @ | Daihatsu Diesel Manufacturing Co., Ltd. | 317,657 | |||||||||||
78,000 | Daiichi Jitsugyo Co., Ltd. | 224,415 | ||||||||||||
26,900 | Daiichikosho Co., Ltd. | 311,856 | ||||||||||||
15,000 | @ | Daikyo, Inc. | 37,178 | |||||||||||
14,400 | Daimei Telecom Engineering Corp. | 121,262 | ||||||||||||
235,000 | Daiwa Industries, Ltd. | 1,225,915 | ||||||||||||
12,600 | DC Co., Ltd. | 38,961 | ||||||||||||
5,900 | @ | Don Quijote Co., Ltd. | 157,676 | |||||||||||
9,000 | Doutor Nichires Holdings Co., Ltd. | 130,256 | ||||||||||||
129,000 | @ | Dowa Holdings Co., Ltd. | 753,140 | |||||||||||
31,591 | DTS Corp. | 271,516 | ||||||||||||
252 | eAccess, Ltd. | 176,744 | ||||||||||||
25,300 | EDION Corp. | 204,341 | ||||||||||||
12,000 | Excel Co., Ltd. | 143,424 | ||||||||||||
44,100 | Exedy Corp. | 906,783 | ||||||||||||
1,216 | Faith, Inc. | 144,855 | ||||||||||||
126 | Fields Corp. | 168,451 | ||||||||||||
63,900 | Fuji Machine Manufacturing Co., Ltd. | 843,254 | ||||||||||||
9,500 | Fuji Seal International, Inc. | 192,056 | ||||||||||||
54,727 | Fuji Soft, Inc. | 946,681 | ||||||||||||
139,100 | Fujikura Kasei Co., Ltd. | 718,640 | ||||||||||||
27,000 | Fujikura, Ltd. | 130,183 | ||||||||||||
2,400 | Fujimori Kogyo Co., Ltd. | 34,178 | ||||||||||||
92 | Fujishoji Co., Ltd. | 120,168 | ||||||||||||
6,800 | Fujitsu Frontech, Ltd. | 56,877 | ||||||||||||
2,200 | Fukuda Denshi Co., Ltd. | 57,332 | ||||||||||||
20,100 | Furuno Electric Co., Ltd. | 100,853 | ||||||||||||
5,000 | Fuyo General Lease Co., Ltd. | 110,479 | ||||||||||||
61 | Gendai Agency, Inc. | 72,477 |
See Accompanying Notes to Financial Statements
151
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Japan (continued) | ||||||||||||||
45,800 | Glory, Ltd. | $ | 1,007,784 | |||||||||||
5,050 | Goldcrest Co., Ltd. | 153,292 | ||||||||||||
10,700 | Hakuto Co., Ltd. | 95,966 | ||||||||||||
4,100 | Hibiya Engineering, Ltd. | 35,136 | ||||||||||||
17,000 | Higo Bank, Ltd. | 100,634 | ||||||||||||
62,100 | HIS Co., Ltd. | 1,334,678 | ||||||||||||
50,000 | Hisaka Works, Ltd. | 523,190 | ||||||||||||
5,500 | Hitachi Capital Corp. | 69,875 | ||||||||||||
4,000 | Hitachi Medical Corp. | 38,566 | ||||||||||||
1,100 | Hogy Medical Co., Ltd. | 59,127 | ||||||||||||
20,580 | @ | Honeys Co., Ltd. | 138,657 | |||||||||||
22,200 | Hosiden Corp. | 268,840 | ||||||||||||
11,500 | Hudson Soft Co., Ltd. | 56,870 | ||||||||||||
11,700 | Icom, Inc. | 282,537 | ||||||||||||
724 | @,L | IDU Co. | 68,332 | |||||||||||
5,400 | Iida Home Max | 96,994 | ||||||||||||
1,500 | @ | Inaba Denki Sangyo Co., Ltd. | 35,576 | |||||||||||
111,709 | Inabata & Co., Ltd. | 423,286 | ||||||||||||
125,900 | Ines Corp. | 948,642 | ||||||||||||
4,800 | Information Services International-Dentsu, Ltd. | 30,394 | ||||||||||||
1,700 | Itochu-Shokuhin Co., Ltd. | 57,882 | ||||||||||||
699,000 | @ | JFE Shoji Holdings, Inc. | 2,529,091 | |||||||||||
51,000 | @,I | Jidosha Buhin Kogyo Co., Ltd. | 80,619 | |||||||||||
24,000 | JMS Co., Ltd. | 105,043 | ||||||||||||
75,600 | JSP Corp. | 722,794 | ||||||||||||
21,000 | Kagawa Bank, Ltd. | 75,750 | ||||||||||||
39,000 | Kaken Pharmaceutical Co., Ltd. | 352,897 | ||||||||||||
1,863,000 | @ | Kanematsu Corp. | 1,531,683 | |||||||||||
5,100 | Kanematsu Electronics, Ltd. | 45,936 | ||||||||||||
66,094 | Kanto Auto Works, Ltd. | 628,222 | ||||||||||||
20,500 | Kato Sangyo Co., Ltd. | 353,804 | ||||||||||||
339 | @ | Kenedix, Inc. | 128,832 | |||||||||||
1,500 | Kita-Nippon Bank, Ltd. | 45,225 | ||||||||||||
69,400 | Kuroda Electric Co., Ltd. | 1,003,275 | ||||||||||||
28,100 | @ | Kyoden Co., Ltd. | 38,698 | |||||||||||
36,000 | Kyodo Printing Co., Ltd. | 103,389 | ||||||||||||
436,000 | Kyodo Shiryo Co., Ltd. | 597,818 | ||||||||||||
95,000 | Kyokuyo Co., Ltd. | 191,860 | ||||||||||||
3,000 | Kyorin Co., Ltd. | 47,980 | ||||||||||||
53,000 | Kyowa Exeo Corp. | 485,421 | ||||||||||||
27,400 | @ | Leopalace21 Corp. | 148,263 | |||||||||||
47,900 | Lintec Corp. | 848,141 | ||||||||||||
5,100 | Marubun Corp. | 26,912 | ||||||||||||
132,000 | Marudai Food Co., Ltd. | 435,399 | ||||||||||||
5,000 | @ | Megachips Corp. | 82,798 | |||||||||||
11,700 | Megane TOP Co., Ltd. | 201,543 | ||||||||||||
19,200 | Mikuni Coca-Cola Bottling Co., Ltd. | 161,866 | ||||||||||||
87,027 | @ | Mimasu Semiconductor Industry Co., Ltd. | 1,129,888 | |||||||||||
4,400 | Ministop Co., Ltd. | 61,499 | ||||||||||||
7,500 | Miraca Holdings, Inc. | 242,552 | ||||||||||||
61,000 | @ | Mitsubishi Steel Manufacturing Co., Ltd. | 119,452 | |||||||||||
41,500 | Miura Co., Ltd. | 1,158,934 | ||||||||||||
71,700 | Modec, Inc. | 1,424,740 | ||||||||||||
499 | Money Partners Co., Ltd. | 227,767 | ||||||||||||
17,000 | Morinaga Milk Industry Co., Ltd. | 79,318 | ||||||||||||
58,350 | Moshi Moshi Hotline, Inc. | 1,060,202 | ||||||||||||
107,600 | Musashi Seimitsu Industry Co., Ltd. | 2,232,696 | ||||||||||||
159,000 | Nabtesco Corp. | 1,830,567 | ||||||||||||
4,000 | Nagase & Co., Ltd. | 48,652 | ||||||||||||
61,183 | Namura Shipbuilding Co., Ltd. | 354,256 | ||||||||||||
5,557 | NEC Fielding, Ltd. | 81,819 | ||||||||||||
1,200 | NEC Mobiling, Ltd. | 32,697 | ||||||||||||
76,400 | NEC Networks & System Integration Corp. | 928,296 | ||||||||||||
228 | Net One systems Co., Ltd. | 298,899 | ||||||||||||
51,500 | Nichi-iko Pharmaceutical Co., Ltd. | 1,531,981 | ||||||||||||
83,000 | Nidec Copal Corp. | 1,244,401 | ||||||||||||
77,500 | Nifco, Inc. | 1,586,014 | ||||||||||||
38,000 | Nihon Parkerizing Co., Ltd. | 450,514 | ||||||||||||
135,000 | Nippo Corp. | 1,041,431 | ||||||||||||
86,000 | @ | Nippon Light Metal Co., Ltd. | 75,708 | |||||||||||
57,786 | Nippon Road Co., Ltd. | 123,527 | ||||||||||||
105,000 | Nippon Shinyaku Co., Ltd. | 1,452,309 | ||||||||||||
103,000 | @ | Nippon Steel Trading Co., Ltd. | 175,058 | |||||||||||
317,000 | Nippon Thompson Co., Ltd. | 1,662,597 | ||||||||||||
49,400 | @ | NIS Group Co., Ltd. | 20,410 | |||||||||||
552,000 | Nishimatsu Construction Co., Ltd. | 839,382 | ||||||||||||
82,700 | Nishimatsuya Chain Co., Ltd. | 828,272 | ||||||||||||
114,000 | @ | Nishi-Nippon City Bank, Ltd. | 282,016 | |||||||||||
7,600 | @ | Nisshin Fudosan Co | 40,749 | |||||||||||
38,000 | Nisshin Oillio Group, Ltd. | 200,244 | ||||||||||||
105,000 | Nitta Corp. | 1,532,028 | ||||||||||||
199,000 | Nittetsu Mining Co., Ltd. | 1,065,981 | ||||||||||||
6,300 | Nojima Corp. | 59,718 | ||||||||||||
9,010 | Obic Co., Ltd. | 1,523,485 | ||||||||||||
44,700 | Okabe Co., Ltd. | 158,410 | ||||||||||||
4,170 | Okinawa Electric Power Co., Inc. | 224,587 | ||||||||||||
133 | Pacific Golf Group International Holdings KK | 91,229 | ||||||||||||
314 | Pilot Corp. | 366,675 | ||||||||||||
3,310 | Point, Inc. | 195,660 | ||||||||||||
116,000 | Prima Meat Packers, Ltd. | 134,209 | ||||||||||||
1,200 | Raito Kogyo Co., Ltd. | 2,390 | ||||||||||||
12,100 | Right On Co., Ltd. | 102,768 | ||||||||||||
2,800 | @ | Riso Kagaku Corp. | 32,538 | |||||||||||
42 | @ | Sammy NetWorks Co., Ltd. | 110,568 | |||||||||||
16,000 | San-In Godo Bank, Ltd. | 139,124 | ||||||||||||
85,000 | Sanki Engineering Co., Ltd. | 624,304 | ||||||||||||
10,500 | @ | Sanoyas Hishino Meisho Corp. | 36,388 | |||||||||||
52,354 | Sanshin Electronics Co., Ltd. | 412,431 | ||||||||||||
48 | Sanyo Housing Nagoya Co., Ltd. | 43,939 | ||||||||||||
1,900 | Sawai Pharmaceutical Co., Ltd. | 108,049 | ||||||||||||
13,000 | @ | Seika Corp. | 30,021 | |||||||||||
16,000 | Seino Holdings Co., Ltd. | 118,397 | ||||||||||||
419 | Seven Bank, Ltd. | 1,023,588 | ||||||||||||
42,600 | @ | Shinko Plantech Co., Ltd. | 435,297 | |||||||||||
338,000 | Shinmaywa Industries, Ltd. | 1,218,131 | ||||||||||||
191,000 | @ | Shinsei Bank, Ltd. | 249,175 | |||||||||||
243,000 | @ | Shinsho Corp. | 402,502 | |||||||||||
55,500 | Siix Corp. | 609,127 | ||||||||||||
73 | So-net Entertainment Corp. | 159,294 | ||||||||||||
59,306 | @ | Sorun Corp. | 299,835 | |||||||||||
7,600 | @ | Studio Alice Co., Ltd. | 77,404 | |||||||||||
101,500 | Sumida Corp. | 671,079 | ||||||||||||
230,000 | Sumikin Bussan Corp. | 503,437 | ||||||||||||
3,100 | Sumisho Computer Systems Corp. | 49,090 | ||||||||||||
53,500 | Sumitomo Densetsu Co., Ltd. | 279,417 | ||||||||||||
32,400 | Tachi-S Co., Ltd. | 259,030 | ||||||||||||
142,000 | Taihei Kogyo Co., Ltd. | 458,128 | ||||||||||||
25,882 | Taiho Kogyo Co., Ltd. | 192,514 | ||||||||||||
77,734 | Taikisha, Ltd. | 980,980 | ||||||||||||
201,000 | Takasago International Corp. | 1,049,900 | ||||||||||||
87,000 | @ | TBK Co., Ltd. | 146,021 | |||||||||||
26,518 | TKC Corp. | 535,057 | ||||||||||||
327,000 | Toa Corp. | 343,842 | ||||||||||||
138,000 | TOA Road Corp. | 198,390 | ||||||||||||
48,000 | Toagosei Co., Ltd. | 167,910 | ||||||||||||
6,500 | TOC Co., Ltd. | 30,485 | ||||||||||||
59,000 | Toho Gas Co., Ltd. | 305,957 | ||||||||||||
341,000 | Tokai Tokyo Financial Holdings | 1,105,145 | ||||||||||||
151,000 | Tokyo Tekko Co., Ltd. | 491,921 | ||||||||||||
31,800 | @ | Tokyo Tomin Bank, Ltd. | 463,606 | |||||||||||
248,000 | @,L | Tonichi Carlife Group, Inc. | 258,215 | |||||||||||
334,782 | @ | Topy Industries, Ltd. | 649,800 | |||||||||||
96 | @ | Tosei Corp. | 30,398 | |||||||||||
8,000 | Totetsu Kogyo Co., Ltd. | 46,970 | ||||||||||||
3,800 | Towa Pharmaceutical Co., Ltd. | 184,788 | ||||||||||||
223,800 | Toyo Kohan Co., Ltd. | 1,084,698 |
See Accompanying Notes to Financial Statements
152
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Japan (continued) | ||||||||||||||
185,179 | @ | Toyo Securities Co., Ltd. | $ | 364,692 | ||||||||||
89,900 | Trusco Nakayama Corp. | 1,400,718 | ||||||||||||
22,400 | Tsumura & Co. | 770,816 | ||||||||||||
26,400 | @ | Tsuruha Holdings, Inc. | 1,028,972 | |||||||||||
41,000 | Tsutsumi Jewelry Co., Ltd. | 965,084 | ||||||||||||
125,000 | Uchida Yoko Co., Ltd. | 375,544 | ||||||||||||
26,800 | Union Tool Co. | 781,571 | ||||||||||||
45,334 | Unipres Corp. | 627,354 | ||||||||||||
244,588 | @ | Usen Corp. | 222,685 | |||||||||||
7,500 | @ | VITAL KSK HOLDINGS, Inc. | 44,802 | |||||||||||
12,500 | @ | Warabeya Nichiyo Co., Ltd. | 152,887 | |||||||||||
8,800 | Waseda Academy Co., Ltd. | 68,052 | ||||||||||||
11,900 | Watabe Wedding Corp. | 153,682 | ||||||||||||
45 | Wowow, Inc. | 88,481 | ||||||||||||
247,300 | Yamazen Corp. | 802,133 | ||||||||||||
10,000 | Yokohama Reito Co., Ltd. | 66,973 | ||||||||||||
11,500 | @ | Yonekyu Corp. | 116,784 | |||||||||||
10,200 | Yorozu Corp. | 122,131 | ||||||||||||
1,049,000 | @ | Yuasa Trading Co., Ltd. | 983,438 | |||||||||||
7,000 | Yurtec Corp. | 44,171 | ||||||||||||
9,600 | Yusen Air & Sea Service Co., Ltd. | 128,582 | ||||||||||||
44,000 | @ | Zeon Corp. | 200,012 | |||||||||||
88,469,415 | ||||||||||||||
Kazakhstan: 0.1% | ||||||||||||||
17,600 | Eurasian Natural Resources Corp. | 239,503 | ||||||||||||
239,503 | ||||||||||||||
Luxembourg: 0.3% | ||||||||||||||
841,970 | Regus PLC | 1,406,333 | ||||||||||||
1,406,333 | ||||||||||||||
Malaysia: 0.5% | ||||||||||||||
61,316 | EON Capital Bhd | 100,146 | ||||||||||||
114,800 | Hong Leong Bank BHD | 251,029 | ||||||||||||
26,900 | Hong Leong Financial Group BHD | 48,666 | ||||||||||||
471,000 | Kulim Malaysia BHD | 1,012,858 | ||||||||||||
1,142,300 | @ | Lion Industries Corp. Bhd | 467,100 | |||||||||||
367,300 | Telekom Malaysia BHD | 322,794 | ||||||||||||
2,202,593 | ||||||||||||||
Mexico: 0.2% | ||||||||||||||
159,705 | @ | Grupo Simec SAB de CV | 391,166 | |||||||||||
160,702 | @ | Industrias CH SA — Series B | 489,272 | |||||||||||
880,438 | ||||||||||||||
Netherlands: 3.4% | ||||||||||||||
18,356 | Accell Group | 894,427 | ||||||||||||
11,500 | @ | Asm International NV | 233,007 | |||||||||||
11,042 | Binck NV | 218,443 | ||||||||||||
1,911 | Brunel International | 53,942 | ||||||||||||
17,274 | CSM | 456,624 | ||||||||||||
44,300 | @ | Draka Holding | 825,749 | |||||||||||
27,418 | Exact Holding NV | 755,924 | ||||||||||||
29,700 | Fugro NV | 1,654,247 | ||||||||||||
12,331 | Grontmij | 339,430 | ||||||||||||
2,265 | @ | Heijmans NV | 40,351 | |||||||||||
41,500 | Imtech NV | 1,054,904 | ||||||||||||
125,309 | @ | James Hardie Industries NV | 794,200 | |||||||||||
2,560 | KAS Bank NV | 52,632 | ||||||||||||
300,905 | OCE NV | 1,902,766 | ||||||||||||
56,300 | SBM Offshore NV | 1,078,174 | ||||||||||||
21,415 | @ | Smartrac NV | 367,053 | |||||||||||
42,192 | @ | SNS Reaal | 298,222 | |||||||||||
3,635 | @ | Teleplan International NV | 9,190 | |||||||||||
104,900 | Ten Cate NV | 2,455,789 | ||||||||||||
28,907 | @ | Unit 4 Agresso NV | 686,918 | |||||||||||
88,573 | Wavin NV | 182,739 | ||||||||||||
14,354,731 | ||||||||||||||
New Zealand: 0.6% | ||||||||||||||
110,977 | Fisher & Paykel Healthcare Corp. | 245,898 | ||||||||||||
381,045 | Fletcher Building, Ltd. | 2,250,852 | ||||||||||||
2,496,750 | ||||||||||||||
Norway: 0.6% | ||||||||||||||
29,200 | Acergy SA | 364,732 | ||||||||||||
127,950 | @ | Norske Skogindustrier ASA | 212,443 | |||||||||||
400,000 | @ | Pronova BioPharma AS | 1,240,812 | |||||||||||
11,400 | @ | Subsea 7, Inc. | 159,826 | |||||||||||
14,900 | Tandberg ASA | 398,626 | ||||||||||||
25,400 | @ | TGS Nopec Geophysical Co. ASA | 385,203 | |||||||||||
2,761,642 | ||||||||||||||
Pakistan: 0.1% | ||||||||||||||
1,100,563 | @ | Bank Alfalah, Ltd. | 178,545 | |||||||||||
165,800 | Nishat Mills, Ltd. | 120,036 | ||||||||||||
601,500 | Pakistan Telecommunication Co., Ltd. | 135,951 | ||||||||||||
434,532 | ||||||||||||||
Peru: 0.0% | ||||||||||||||
26,900 | Hochschild Mining PLC | 120,864 | ||||||||||||
120,864 | ||||||||||||||
Poland: 0.0% | ||||||||||||||
30,476 | @ | Netia SA | 44,360 | |||||||||||
44,360 | ||||||||||||||
Singapore: 2.3% | ||||||||||||||
1,464,000 | # | ARA Asset Management, Ltd. | 866,983 | |||||||||||
97,000 | Chemoil Energy, Ltd. | 52,138 | ||||||||||||
52,494 | China Yuchai International, Ltd. | 561,686 | ||||||||||||
64,000 | CSE Global, Ltd. | 36,115 | ||||||||||||
889,000 | @ | Goodpack, Ltd. | 803,355 | |||||||||||
205,000 | Hiap Seng Engineering, Ltd. | 95,403 | ||||||||||||
205,000 | Hong Leong Asia, Ltd. | 299,784 | ||||||||||||
29,000 | Jardine Cycle & Carriage, Ltd. | 476,244 | ||||||||||||
383,000 | @ | K1 Ventures, Ltd. | 45,965 | |||||||||||
609,000 | Keppel Land, Ltd. | 1,211,341 | ||||||||||||
1,223,000 | @ | LC Development, Ltd. | 164,444 | |||||||||||
4,152,000 | Macquarie International Infrastructure Fund, Ltd. | 1,202,811 | ||||||||||||
216,000 | Meiban Group, Ltd. | 46,894 | ||||||||||||
583,000 | @ | Olam International, Ltd. | 1,119,124 | |||||||||||
101,000 | @ | OSIM International, Ltd. | 31,101 | |||||||||||
225,000 | SembCorp Industries, Ltd. | 530,127 | ||||||||||||
89,000 | SembCorp Marine, Ltd. | 217,084 | ||||||||||||
674,000 | @ | Singapore Airport Terminal Services, Ltd. | 1,177,852 | |||||||||||
112,000 | Straits Asia Resources, Ltd. | 143,169 | ||||||||||||
50,000 | Super Coffeemix Manufacturing, Ltd. | 24,931 | ||||||||||||
613,000 | @ | Wing Tai Holdings, Ltd. | 717,603 | |||||||||||
9,824,154 | ||||||||||||||
South Korea: 1.7% | ||||||||||||||
11,010 | Chong Kun Dang Pharm Corp. | 201,680 | ||||||||||||
8,860 | Daegu Bank | 117,554 | ||||||||||||
24,720 | Daou Technology, Inc. | 153,172 | ||||||||||||
28,140 | Doosan Engineering & Construction Co., Ltd. | 172,291 | ||||||||||||
87,620 | Doosan Infracore Co., Ltd. | 1,246,790 | ||||||||||||
16,800 | Halla Climate Control Corp. | 163,330 | ||||||||||||
31,760 | Hanil E-Wha Co., Ltd. | 98,504 | ||||||||||||
679 | Hite Brewery Co., Ltd. | 92,390 | ||||||||||||
1,025 | Humax Co., Ltd. | 12,570 | ||||||||||||
4,575 | @,I,X | Humax Co., Ltd. | 49,752 | |||||||||||
17,400 | Hyundai DSF Co., Ltd. | 117,679 |
See Accompanying Notes to Financial Statements
153
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
South Korea (continued) | ||||||||||||||
13,270 | Hyundai Marine & Fire Insurance Co., Ltd. | $ | 245,096 | |||||||||||
12,700 | @ | Industrial Bank of Korea | 153,856 | |||||||||||
7,830 | INTOPS Co., Ltd. | 112,871 | ||||||||||||
3,619 | KIWOOM Securities Co., Ltd. | 135,114 | ||||||||||||
1,656 | Kyeryong Construction Industrial Co., Ltd. | 30,849 | ||||||||||||
8,530 | LG Dacom Corp. | 134,709 | ||||||||||||
17,040 | LIG Non-Life Insurance Co., Ltd. | 349,090 | ||||||||||||
151 | Namyang Dairy Products Co., Ltd. | 68,772 | ||||||||||||
23,950 | Pusan Bank | 271,570 | ||||||||||||
14,425 | Samsung SDI Co., Ltd. | 1,646,797 | ||||||||||||
41,577 | SeAH Steel Corp. | 1,183,238 | ||||||||||||
14,320 | Sebang Co., Ltd. | 163,483 | ||||||||||||
7,120 | Sejong Industrial Co., Ltd. | 35,495 | ||||||||||||
5,040 | Woongjin Thinkbig Co., Ltd. | 94,824 | ||||||||||||
1,358 | Yuhan Corp. | 219,394 | ||||||||||||
7,270,870 | ||||||||||||||
Spain: 1.7% | ||||||||||||||
9,760 | @ | Baron de Ley | 473,532 | |||||||||||
8,663 | Bolsas y Mercados Espanoles | 288,799 | ||||||||||||
2,680 | Construcciones y Auxiliar de Ferrocarriles SA | 1,320,658 | ||||||||||||
8,712 | @ | Corporacion Financiera Alba SA | 454,726 | |||||||||||
59,500 | Enagas | 1,223,869 | ||||||||||||
8,700 | Grupo Catalana Occidente SA | 210,796 | ||||||||||||
7,500 | Indra Sistemas SA | 176,377 | ||||||||||||
59,200 | Laboratorios Farmaceuticos Rovi SA | 668,997 | ||||||||||||
12,346 | Obrascon Huarte Lain SA | 328,036 | ||||||||||||
4,022 | L | Pescanova SA | 139,835 | |||||||||||
35,800 | Red Electrica de Espana | 1,849,061 | ||||||||||||
7,134,686 | ||||||||||||||
Sweden: 1.5% | ||||||||||||||
10,611 | @ | Billerud Aktiebolag | 58,787 | |||||||||||
123,762 | @ | Bure Equity AB | 632,037 | |||||||||||
6,633 | Cardo AB | 178,858 | ||||||||||||
27,938 | @,I,X | D Carnegie AB | — | |||||||||||
7,671 | Industrivarden AB | 83,412 | ||||||||||||
1,204 | Mekonomen AB | 23,256 | ||||||||||||
170,242 | NCC AB | 2,571,891 | ||||||||||||
30,000 | Saab AB | 393,872 | ||||||||||||
110,000 | Swedish Match AB | 2,257,600 | ||||||||||||
6,199,713 | ||||||||||||||
Switzerland: 6.6% | ||||||||||||||
4,240 | @ | Actelion, Ltd. — Reg | 233,721 | |||||||||||
4,500 | Adecco SA | 201,080 | ||||||||||||
545 | @ | AFG Arbonia-Forster Holding | 11,632 | |||||||||||
6,385 | Baloise Holding AG | 546,696 | ||||||||||||
40,000 | @ | Bank Sarasin & Compagnie AG | 1,592,731 | |||||||||||
5,700 | Banque Cantonale Vaudoise | 2,147,018 | ||||||||||||
4,900 | Bellevue Group AG | 199,245 | ||||||||||||
8,000 | BKW FMB Energie AG | 658,069 | ||||||||||||
5,102 | @ | Bobst Group AG | 188,796 | |||||||||||
7,300 | Bucher Industries AG | 766,958 | ||||||||||||
1,995 | @ | Charles Voegele Holding AG | 78,678 | |||||||||||
170,529 | @ | Clariant AG | 1,630,319 | |||||||||||
1,701 | Coltene Holding AG | 86,986 | ||||||||||||
2,751 | Compagnie Financiere Tradition (CFT) | 341,166 | ||||||||||||
23,604 | @ | Dufry Group | 1,490,985 | |||||||||||
4,809 | @ | Forbo Holding AG | 1,358,868 | |||||||||||
1,125 | Galenica AG | 387,638 | ||||||||||||
60,000 | @ | Gategroup Holding AG | 1,579,101 | |||||||||||
900 | Gurit Holding AG | 496,576 | ||||||||||||
3,661 | Helvetia Holding AG | 1,167,290 | ||||||||||||
108,000 | Julius Baer Holding AG — Reg | 1,317,609 | ||||||||||||
2,975 | Kuoni Reisen Holding | 1,008,437 | ||||||||||||
5,610 | Lonza Group AG | 436,243 | ||||||||||||
14,949 | @ | Micronas Semiconductor Hold | 53,086 | |||||||||||
85,500 | Mobilezone Holding AG | 656,731 | ||||||||||||
10,690 | @,I | Newave Energy Holding SA | 431,897 | |||||||||||
10,100 | Partners Group | 1,238,761 | ||||||||||||
6,700 | @ | PSP Swiss Property AG | 375,974 | |||||||||||
16,000 | Schweizerhall Holding AG | 2,625,728 | ||||||||||||
760 | Sika AG | 1,030,339 | ||||||||||||
21,800 | @ | Temenos Group AG — Reg | 497,554 | |||||||||||
12,002 | Valora Holding AG | 2,861,580 | ||||||||||||
176 | Vetropack Holding AG | 282,607 | ||||||||||||
3,337 | VZ Holding AG | 256,968 | ||||||||||||
28,237,067 | ||||||||||||||
Taiwan: 1.3% | ||||||||||||||
351,750 | AcBel Polytech, Inc. | 240,403 | ||||||||||||
93,000 | AmTRAN Technology Co., Ltd. | 88,388 | ||||||||||||
87,000 | @ | Arima Communications Corp. | 31,641 | |||||||||||
310,480 | Asia Vital Components Co., Ltd. | 322,197 | ||||||||||||
17,000 | Audix Corp. | 10,295 | ||||||||||||
16,000 | China Steel Structure Co., Ltd. | 11,274 | ||||||||||||
70,000 | Feng TAY Enterprise Co., Ltd. | 57,811 | ||||||||||||
773,000 | Gigabyte Technology Co., Ltd. | 655,654 | ||||||||||||
410,649 | Hai Kwang Enterprise Corp. | 225,967 | ||||||||||||
29,480 | @ | Ho Tung Chemical Corp. | 13,364 | |||||||||||
259,000 | Hung Poo Real Estate Development Corp. | 373,719 | ||||||||||||
221,550 | Inventec Appliances Corp. | 214,157 | ||||||||||||
751,300 | Inventec Co., Ltd. | 415,615 | ||||||||||||
62,000 | King Yuan Electronics Co., Ltd. | 23,930 | ||||||||||||
126,480 | Lingsen Precision Industries, Ltd. | 43,792 | ||||||||||||
249,240 | LITE-ON IT Corp. | 194,210 | ||||||||||||
33,000 | @ | Long Bon International Co., Ltd. | 11,565 | |||||||||||
59,801 | Macronix International | 30,313 | ||||||||||||
95,000 | @ | Mercuries & Associates, Ltd. | 39,938 | |||||||||||
800,000 | @ | Sampo Corp. | 125,786 | |||||||||||
616,000 | Sigurd Microelectronics Corp. | 308,237 | ||||||||||||
2,070 | Sinon Corp. | 820 | ||||||||||||
75,000 | @ | Supreme Electronics Co., Ltd. | 49,632 | |||||||||||
521,000 | @ | Taishin Financial Holdings Co., Ltd. | 203,893 | |||||||||||
181,000 | Taiwan Acceptance Corp. | 169,871 | ||||||||||||
178,000 | @ | Taiwan Life Insurance Co., Ltd. | 159,188 | |||||||||||
1,842,000 | @ | Tatung Co., Ltd. | 405,688 | |||||||||||
34,000 | I,X | Tsann Kuen Enterprise Co., Ltd. | 28,017 | |||||||||||
29,000 | Ttet Union Corp. | 32,922 | ||||||||||||
376,170 | TYC Brother Industrial Co., Ltd. | 228,176 | ||||||||||||
477,000 | Universal Scientific Industrial Co., Ltd. | 235,334 | ||||||||||||
324,000 | @ | WUS Printed Circuit Co., Ltd. | 102,349 | |||||||||||
1,375,000 | Yageo Corp. | 378,963 | ||||||||||||
71,000 | Yosun Industrial Corp. | 63,808 | ||||||||||||
242,000 | Zenitron Corp. | 146,867 | ||||||||||||
5,643,784 | ||||||||||||||
Thailand: 0.5% | ||||||||||||||
205,700 | Kiatnakin Bank PLC | 154,361 | ||||||||||||
3,302,900 | Krung Thai Bank PCL | 861,066 | ||||||||||||
978,500 | Siam City Bank PCL | 686,946 | ||||||||||||
507,600 | Thanachart Capital PCL | 296,244 | ||||||||||||
1,998,617 | ||||||||||||||
Turkey: 0.2% | ||||||||||||||
422,771 | @ | Aksa Akrilik Kimya Sanayii | 455,276 | |||||||||||
28,916 | Goodyear Lastikleri TAS | 220,744 | ||||||||||||
676,020 | ||||||||||||||
United Arab Emirates: 0.1% | ||||||||||||||
68,151 | Lamprell PLC | 226,267 | ||||||||||||
226,267 | ||||||||||||||
See Accompanying Notes to Financial Statements
154
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
United Kingdom: 13.6% | ||||||||||||||
60,000 | A.G.BARR PLC | $ | 817,194 | |||||||||||
109,891 | @ | Afren PLC | 156,056 | |||||||||||
150,000 | Albemarle & Bond Holdings | 592,979 | ||||||||||||
45,000 | @ | Amec PLC | 592,672 | |||||||||||
56,400 | Amlin PLC | 326,452 | ||||||||||||
160,000 | @ | Anglo Pacific Group PLC | 542,549 | |||||||||||
26,483 | Anite PLC | 15,098 | ||||||||||||
63,399 | Ashmore Group PLC | 283,288 | ||||||||||||
238,984 | Ashtead Group PLC | 314,372 | ||||||||||||
38,800 | Atkins WS PLC | 358,857 | ||||||||||||
40,000 | Aveva Group PLC | 582,599 | ||||||||||||
237,180 | @ | Avocet Mining PLC | 302,916 | |||||||||||
150,231 | Babcock International Group | 1,491,455 | ||||||||||||
63,401 | @ | Barratt Developments PLC | 139,975 | |||||||||||
634,200 | Beazley PLC | 1,112,849 | ||||||||||||
200,000 | @ | Bodycote PLC | 534,381 | |||||||||||
700,000 | Booker Group PLC | 511,595 | ||||||||||||
118,812 | @ | BowLeven PLC | 169,416 | |||||||||||
108,425 | Britvic PLC | 620,030 | ||||||||||||
50,000 | BSS Group PLC | 218,021 | ||||||||||||
70,000 | Burberry Group PLC | 617,305 | ||||||||||||
175,262 | @ | Cape PLC | 718,633 | |||||||||||
200,148 | @ | Capital & Regional PLC | 111,195 | |||||||||||
100,000 | Carillion PLC | 481,738 | ||||||||||||
132,045 | Chloride Group PLC | 348,622 | ||||||||||||
2,979 | Clarkson PLC | 40,306 | ||||||||||||
172,464 | Close Brothers Group PLC | 1,983,230 | ||||||||||||
88,473 | Computacenter PLC | 409,906 | ||||||||||||
34,735 | @ | Cookson Group PLC | 207,270 | |||||||||||
21,962 | Cranswick PLC | 252,317 | ||||||||||||
140,098 | @ | CSR PLC | 1,022,581 | |||||||||||
65,000 | Daily Mail & General Trust | 422,894 | ||||||||||||
217,605 | Dairy Crest Group PLC | 1,426,457 | ||||||||||||
44,079 | Davis Service Group PLC | 302,023 | ||||||||||||
163,474 | @ | Debenhams PLC | 208,412 | |||||||||||
80,000 | Dechra Pharmaceuticals PLC | 602,080 | ||||||||||||
182,920 | Delta PLC | 500,920 | ||||||||||||
322,913 | Devro PLC | 637,188 | ||||||||||||
398,512 | Dimension Data Holdings PLC | 463,343 | ||||||||||||
57,500 | Drax Group PLC | 437,473 | ||||||||||||
601,538 | DS Smith PLC | 1,148,841 | ||||||||||||
307,932 | eaga PLC | 734,482 | ||||||||||||
5,000 | Education Development International PLC | 10,167 | ||||||||||||
1,000,000 | Elementis PLC | 1,040,619 | ||||||||||||
54,310 | @ | Ferrexpo PLC | 132,216 | |||||||||||
44,638 | Fiberweb PLC | 43,187 | ||||||||||||
20,000 | Fidessa Group PLC | 392,111 | ||||||||||||
21,990 | Forth Ports PLC | 398,128 | ||||||||||||
878,624 | Future PLC | 294,542 | ||||||||||||
108,493 | @ | GKN PLC | 190,050 | |||||||||||
97,054 | @ | Grainger PLC | 456,083 | |||||||||||
127,102 | Greggs PLC | 897,300 | ||||||||||||
150,000 | Halma PLC | 559,748 | ||||||||||||
110,014 | Hamworthy KSE | 458,622 | ||||||||||||
7,389 | Hays PLC | 11,837 | ||||||||||||
157,605 | Healthcare Locums PLC | 670,837 | ||||||||||||
13,500 | Homeserve PLC | 357,278 | ||||||||||||
68,171 | Hunting PLC | 585,567 | ||||||||||||
80,000 | IG Group Holdings PLC | 395,583 | ||||||||||||
59,400 | IMI PLC | 418,963 | ||||||||||||
1,408,698 | @ | Inchcape PLC | 675,643 | |||||||||||
441,097 | @ | Intec Telecom Systems PLC | 790,035 | |||||||||||
50,300 | International Personal Finance | 169,000 | ||||||||||||
159,041 | Interserve PLC | 607,005 | ||||||||||||
254,293 | Investec PLC | 1,835,563 | ||||||||||||
225,000 | ITE Group PLC | 447,283 | ||||||||||||
115,000 | John Wood Group PLC | 602,421 | ||||||||||||
155,877 | @ | Johnston Press PLC | 71,916 | |||||||||||
58,000 | Keller Group PLC | 678,632 | ||||||||||||
32,000 | Kier Group PLC | 505,150 | ||||||||||||
235,000 | Liontrust Asset Management PLC | 503,056 | ||||||||||||
428,244 | LogicaCMG PLC | 811,875 | ||||||||||||
408,321 | Mcbride PLC | 1,490,115 | ||||||||||||
72,668 | Michael Page International PLC | 382,959 | ||||||||||||
110,000 | Millennium & Copthorne Hotels PLC | 608,023 | ||||||||||||
84,300 | @ | Misys PLC | 285,377 | |||||||||||
224,306 | Mitie Group | 877,512 | ||||||||||||
32,614 | Mondi PLC | 180,020 | ||||||||||||
17,054 | Morgan Sindall PLC | 157,724 | ||||||||||||
30,473 | National Express Group PLC | 162,095 | ||||||||||||
19,604 | @ | Next PLC | 575,129 | |||||||||||
109,752 | Northern Foods PLC | 113,566 | ||||||||||||
32,392 | Northgate PLC | 116,347 | ||||||||||||
57,634 | Oxford Instruments PLC | 229,859 | ||||||||||||
40,263 | @ | Pace PLC | 145,803 | |||||||||||
22,040 | Petrofac, Ltd. | 339,216 | ||||||||||||
28,055 | @ | Premier Oil PLC | 540,911 | |||||||||||
40,000 | @ | Provident Financial PLC | 610,196 | |||||||||||
220,000 | PV Crystalox Solar PLC | 235,376 | ||||||||||||
91,545 | @ | Rank Group PLC | 132,875 | |||||||||||
160,000 | Ricardo PLC | 625,960 | ||||||||||||
36,800 | Rightmove PLC | 317,469 | ||||||||||||
110,000 | RM PLC | 263,414 | ||||||||||||
25,000 | Rotork PLC | 465,188 | ||||||||||||
18,044 | RPC Group PLC | 76,184 | ||||||||||||
70,000 | @ | SDL PLC | 463,495 | |||||||||||
111,162 | Senior PLC | 111,344 | ||||||||||||
26,300 | Severfield-Rowen PLC | 71,114 | ||||||||||||
336,231 | @ | Shanks Group PLC | 473,702 | |||||||||||
210,265 | SIG PLC | 409,185 | ||||||||||||
80,133 | Smiths News PLC | 159,897 | ||||||||||||
33,533 | Spice PLC | 43,755 | ||||||||||||
618,155 | @ | Sportingbet PLC | 668,975 | |||||||||||
56,300 | Sports Direct International PLC | 89,887 | ||||||||||||
18,043 | St. James’s Place PLC | 77,066 | ||||||||||||
220,000 | Stagecoach Group PLC | 521,050 | ||||||||||||
70,766 | @ | Sthree PLC | 291,502 | |||||||||||
37,114 | Synergy Health PLC | 368,884 | ||||||||||||
93,223 | Tate & Lyle PLC | 686,291 | ||||||||||||
159,292 | @ | Taylor Woodrow PLC | 96,572 | |||||||||||
41,635 | @ | Tenon Group PLC | 40,719 | |||||||||||
115,634 | @ | Topps Tiles PLC | 155,865 | |||||||||||
147,276 | Tullett Prebon PLC | 874,077 | ||||||||||||
30,000 | Ultra Electronics Holdings | 647,552 | ||||||||||||
75,000 | United Business Media, Ltd. | 567,506 | ||||||||||||
45,000 | Victrex PLC | 560,111 | ||||||||||||
70,000 | Vitec Group PLC | 436,015 | ||||||||||||
55,000 | VT Group PLC | 489,590 | ||||||||||||
65,000 | Wellstream Holdings PLC | 544,438 | ||||||||||||
40,800 | @ | Wetherspoon (J.D.) PLC | 307,519 | |||||||||||
160,754 | WH Smith PLC | 1,325,779 | ||||||||||||
256,881 | William Hill PLC | 705,352 | ||||||||||||
57,888,947 | ||||||||||||||
United States: 0.7% | ||||||||||||||
58,100 | @ | Golden Star Resources, Ltd. | 180,950 | |||||||||||
202,300 | Virgin Media, Inc. | 2,826,131 | ||||||||||||
3,007,081 | ||||||||||||||
Total Common Stock (Cost $384,070,648) | 407,855,552 | |||||||||||||
REAL ESTATE INVESTMENT TRUSTS: 0.6% | ||||||||||||||
Australia: 0.4% | ||||||||||||||
33,073 | Babcock & Brown Japan Property Trust | 12,828 | ||||||||||||
800,272 | Centro Retail Trust | 115,599 | ||||||||||||
1,072,721 | Mirvac Group | 1,404,530 | ||||||||||||
1,532,957 | ||||||||||||||
France: 0.0% | ||||||||||||||
1,736 | ICADE | 182,766 | ||||||||||||
182,766 | ||||||||||||||
See Accompanying Notes to Financial Statements
155
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Greece: 0.1% | ||||||||||||||
45,000 | Eurobank Properties Real Estate Investment Co. | $ | 566,103 | |||||||||||
566,103 | ||||||||||||||
Japan: 0.0% | ||||||||||||||
76 | @ | Crescendo Investment Corp. | 118,703 | |||||||||||
118,703 | ||||||||||||||
Netherlands: 0.0% | ||||||||||||||
2,754 | Vastned Offices | 47,746 | ||||||||||||
47,746 | ||||||||||||||
Singapore: 0.1% | ||||||||||||||
58,000 | K-Real Estate Investment Trust Asia | 42,533 | ||||||||||||
230,000 | Suntec Real Estate Investment Trust | 195,643 | ||||||||||||
238,176 | ||||||||||||||
Total Real Estate Investment Trusts (Cost $2,194,569) | 2,686,451 | |||||||||||||
MUTUAL FUNDS: 0.0% | ||||||||||||||
Australia: 0.0% | ||||||||||||||
232,345 | ** | ING Industrial Fund | 104,965 | |||||||||||
Total Mutual Funds (Cost $130,868) | 104,965 | |||||||||||||
PREFERRED STOCK: 0.6% | ||||||||||||||
Brazil: 0.1% | ||||||||||||||
43,300 | @ | Confab Industrial SA | 127,324 | |||||||||||
127,324 | ||||||||||||||
Germany: 0.5% | ||||||||||||||
32,076 | Draegerwerk AG | 1,153,563 | ||||||||||||
829 | Hornbach Holding AG | 80,959 | ||||||||||||
6,956 | Hugo Boss AG | 259,278 | ||||||||||||
31,256 | Jungheinrich AG | 581,308 | ||||||||||||
13,512 | ProSieben SAT.1 Media AG | 140,659 | ||||||||||||
2,215,767 | ||||||||||||||
Total Preferred Stock (Cost $2,754,777) | 2,343,091 | |||||||||||||
RIGHTS: 0.0% | ||||||||||||||
Australia: 0.0% | ||||||||||||||
232,345 | ** | ING Industrial Fund | 12,732 | |||||||||||
2,139 | Programmed Maintenance Services Ltd. | 652 | ||||||||||||
13,384 | ||||||||||||||
Hong Kong: 0.0% | ||||||||||||||
63,200 | First Pacific Co. | 10,030 | ||||||||||||
10,030 | ||||||||||||||
Total Rights (Cost $-) | 23,414 | |||||||||||||
Total Long-Term Investments (Cost $389,150,862) | 413,013,473 | |||||||||||||
SHORT-TERM INVESTMENTS: 0.9% | ||||||||||||||
Affiliated Mutual Fund: 0.9% | ||||||||||||||
3,763,854 | ING Institutional Prime Money Market Fund — Class I | 3,763,854 | ||||||||||||
Total Mutual Fund (Cost $3,763,854) | 3,763,854 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Securities Lending CollateralCC: 0.0% | ||||||||||||||
$ | 211,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 211,000 | ||||||||||
79,696 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 63,757 | ||||||||||||
Total Securities Lending Collateral (Cost $290,696) | 274,757 | |||||||||||||
Total Short-Term Investments (Cost $4,054,550) | 4,038,611 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $393,205,412)* | 97.7 | % | $ | 417,052,084 | ||||||||||
Other Assets and Liabilities - Net | 2.3 | 9,729,352 | ||||||||||||
Net Assets | 100.0 | % | $ | 426,781,607 | ||||||||||
@ | 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. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) | |
to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | ||
I | Illiquid security | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
** | Investment in affiliate | |
X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
* | Cost for federal income tax purposes is $398,669,400. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 63,339,316 | ||
Gross Unrealized Depreciation | (44,956,632 | ) | ||
Net Unrealized Appreciation | $ | 18,382,684 | ||
See Accompanying Notes to Financial Statements
156
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Advertising | 0.7 | % | ||
Aerospace/Defense | 1.7 | |||
Agriculture | 0.9 | |||
Airlines | 0.6 | |||
Apartments | 0.0 | |||
Apparel | 0.3 | |||
Auto Manufacturers | 0.8 | |||
Auto Parts & Equipment | 2.4 | |||
Banks | 4.5 | |||
Beverages | 0.7 | |||
Biotechnology | 0.2 | |||
Building Materials | 2.1 | |||
Chemicals | 2.9 | |||
Coal | 0.2 | |||
Commercial Services | 2.8 | |||
Computers | 4.3 | |||
Distribution/Wholesale | 2.6 | |||
Diversified | 0.4 | |||
Diversified Financial Services | 4.3 | |||
Electric | 0.8 | |||
Electrical Components & Equipment | 1.4 | |||
Electronics | 2.5 | |||
Energy — Alternate Sources | 0.3 | |||
Engineering & Construction | 4.7 | |||
Entertainment | 0.7 | |||
Environmental Control | 1.1 | |||
Food | 2.6 | |||
Food Service | 0.0 | |||
Forest Products & Paper | 0.9 | |||
Gas | 0.9 | |||
Hand/Machine Tools | 0.7 | |||
Healthcare — Products | 0.6 | |||
Healthcare — Services | 0.7 | |||
Holding Companies — Diversified | 0.8 | |||
Home Builders | 0.1 | |||
Home Furnishings | 1.5 | |||
Household Products/Wares | 0.5 | |||
Insurance | 2.2 | |||
Internet | 1.4 | |||
Investment Companies | 0.5 | |||
Iron/Steel | 1.4 | |||
Leisure Time | 1.0 | |||
Lodging | 0.2 | |||
Machinery — Construction & Mining | 0.7 | |||
Machinery — Diversified | 4.3 | |||
Media | 1.1 | |||
Metal Fabricate/Hardware | 1.6 | |||
Mining | 2.2 | |||
Miscellaneous Manufacturing | 2.4 | |||
Mutual Funds | 0.0 | |||
Office Property | 0.2 | |||
Office/Business Equipment | 0.7 | |||
Oil & Gas | 1.7 | |||
Oil & Gas Services | 2.7 | |||
Open-End Funds | 0.0 | |||
Packaging & Containers | 0.8 | |||
Pharmaceuticals | 3.6 | |||
Pipelines | 0.0 | |||
Real Estate | 2.0 | |||
Retail | 5.8 | |||
Semiconductors | 1.0 | |||
Shipbuilding | 0.1 | |||
Shopping Centers | 0.0 | |||
Software | 1.5 | |||
Storage/Warehousing | 0.0 | |||
Telecommunications | 2.4 | |||
Textiles | 0.1 | |||
Transportation | 1.8 | |||
Trucking & Leasing | 0.2 | |||
Venture Capital | 0.0 | |||
Short-Term Investments | 0.9 | |||
Other Assets and Liabilities — Net | 2.3 | |||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Argentina | $ | 339,893 | $ | — | $ | — | $ | 339,893 | ||||||||
Australia | 51,576 | 19,464,942 | — | 19,516,518 | ||||||||||||
Austria | — | 7,714,254 | — | 7,714,254 | ||||||||||||
Belgium | — | 7,846,515 | — | 7,846,515 | ||||||||||||
Bermuda | — | 1,311,366 | — | 1,311,366 | ||||||||||||
Canada | 16,783,211 | 210,676 | — | 16,993,887 | ||||||||||||
China | 1,469,139 | 2,373,908 | — | 3,843,047 | ||||||||||||
Cyprus | — | 182,218 | — | 182,218 | ||||||||||||
Denmark | — | 4,803,369 | — | 4,803,369 | ||||||||||||
Finland | — | 1,914,673 | — | 1,914,673 | ||||||||||||
France | — | 27,255,502 | — | 27,255,502 | ||||||||||||
Germany | 834,101 | 27,801,186 | — | 28,635,287 | ||||||||||||
Greece | — | 1,345,155 | — | 1,345,155 | ||||||||||||
Hong Kong | 3,206,084 | 17,326,821 | 716,749 | 21,249,654 | ||||||||||||
Hungary | — | 397,965 | — | 397,965 | ||||||||||||
India | — | 7,442,289 | — | 7,442,289 | ||||||||||||
Indonesia | — | 119,889 | — | 119,889 | ||||||||||||
Ireland | — | 2,642,719 | — | 2,642,719 | ||||||||||||
Israel | — | 1,021,549 | — | 1,021,549 | ||||||||||||
Italy | 859,965 | 10,901,471 | — | 11,761,436 | ||||||||||||
Japan | — | 88,469,415 | — | 88,469,415 | ||||||||||||
Kazakhstan | — | 239,503 | — | 239,503 | ||||||||||||
Luxembourg | — | 1,406,333 | — | 1,406,333 | ||||||||||||
Malaysia | — | 2,202,593 | — | 2,202,593 | ||||||||||||
Mexico | 880,438 | — | — | 880,438 | ||||||||||||
Netherlands | — | 14,354,731 | — | 14,354,731 | ||||||||||||
New Zealand | — | 2,496,750 | — | 2,496,750 | ||||||||||||
Norway | — | 2,761,642 | — | 2,761,642 | ||||||||||||
Pakistan | 434,532 | — | — | 434,532 | ||||||||||||
Peru | — | 120,864 | — | 120,864 | ||||||||||||
Poland | — | 44,360 | — | 44,360 | ||||||||||||
Singapore | 1,428,669 | 8,395,485 | — | 9,824,154 | ||||||||||||
South Korea | 231,964 | 7,038,906 | — | 7,270,870 | ||||||||||||
Spain | — | 7,134,686 | — | 7,134,686 | ||||||||||||
Sweden | — | 6,199,713 | — | 6,199,713 | ||||||||||||
Switzerland | 2,492,800 | 25,744,267 | — | 28,237,067 | ||||||||||||
Taiwan | — | 5,615,767 | 28,017 | 5,643,784 | ||||||||||||
Thailand | — | 1,998,617 | — | 1,998,617 | ||||||||||||
Turkey | — | 676,020 | — | 676,020 | ||||||||||||
United Arab Emirates | — | 226,267 | — | 226,267 | ||||||||||||
United Kingdom | 558,360 | 57,330,587 | — | 57,888,947 | ||||||||||||
United States | 3,007,081 | — | — | 3,007,081 | ||||||||||||
Total Common Stock | 32,577,813 | 374,532,973 | 744,766 | 407,855,552 | ||||||||||||
Real Estate Investment Trusts | — | 2,686,451 | — | 2,686,451 | ||||||||||||
Mutual Funds | — | 104,965 | — | 104,965 | ||||||||||||
Preferred Stock | 127,324 | 2,215,767 | — | 2,343,091 | ||||||||||||
Rights | — | 23,414 | — | 23,414 | ||||||||||||
Short-Term Investments | 3,974,854 | 63,757 | — | 4,038,611 | ||||||||||||
Total Investments, at value | $ | 36,679,991 | $ | 379,627,327 | $ | 744,766 | $ | 417,052,084 | ||||||||
See Accompanying Notes to Financial Statements
157
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International SmallCap Multi-Manager Fund
as of October 31, 2009 (continued)
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended October 31, 2009:
Change In | ||||||||||||||||||||||||||||||||||||||||||||
Beginning | Accrued | Total | Unrealized | Transfers | Transfers | Ending | ||||||||||||||||||||||||||||||||||||||
Balance | Discounts/ | Realized | Appreciation/ | Into | Out of | Balance | ||||||||||||||||||||||||||||||||||||||
at 10/31/2008 | Purchases | Issuances | Settlements | Sales | (Premiums) | Gain/(Loss) | (Depreciation) | Level 3 | Level 3 | at 10/31/2009 | ||||||||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | $ | 191,561 | $ | 68,403 | $ | — | $ | — | $ | (216,198 | ) | $ | — | $ | 29,002 | $ | (72,768 | ) | $ | 744,766 | $ | — | $ | 744,766 | ||||||||||||||||||||
Total Investments, at value | $ | 191,561 | $ | 68,403 | $ | — | $ | — | $ | (216,198 | ) | $ | — | $ | 29,002 | $ | (72,768 | ) | $ | 744,766 | $ | — | $ | 744,766 | ||||||||||||||||||||
As of October 31, 2009, total change in unrealized gain (loss) on Level 3 securities still held at year end and included in the change in net assets was $211,688.
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
Transfers into Level 3 represents either the beginning balance (for transfer in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period.
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
158
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 97.3% | ||||||||||||||
Australia: 0.6% | ||||||||||||||
230,500 | @,L | Macquarie Group, Ltd. | $ | 10,094,917 | ||||||||||
10,094,917 | ||||||||||||||
Bermuda: 0.9% | ||||||||||||||
534,534 | @ | Tyco Electronics, Ltd. | 11,358,848 | |||||||||||
241,800 | @ | XL Capital, Ltd. | 3,967,938 | |||||||||||
15,326,786 | ||||||||||||||
Brazil: 2.6% | ||||||||||||||
482,500 | Banco do Brasil SA | 7,726,683 | ||||||||||||
781,371 | @ | Centrais Eletricas Brasileiras SA ADR — Class A | 11,204,860 | |||||||||||
1,940,186 | L | Contax Participacoes SA ADR | 4,132,596 | |||||||||||
406,754 | Tele Norte Leste Participacoes SA ADR | 7,752,731 | ||||||||||||
220,358 | @ | Tim Participacoes SA ADR | 5,198,245 | |||||||||||
287,471 | @,L | Vivo Participacoes SA ADR | 6,971,172 | |||||||||||
42,986,287 | ||||||||||||||
Canada: 4.0% | ||||||||||||||
4,732,500 | @ | Bombardier, Inc. — Class B | 19,200,291 | |||||||||||
199,800 | EnCana Corp. | 11,078,970 | ||||||||||||
321,800 | @ | GoldCorp, Inc. | 11,832,586 | |||||||||||
390,300 | Suncor Energy, Inc. | 12,887,706 | ||||||||||||
1,104,500 | Yamana Gold, Inc. | 11,762,925 | ||||||||||||
66,762,478 | ||||||||||||||
France: 13.8% | ||||||||||||||
350,742 | @,L | Air France-KLM | 5,377,528 | |||||||||||
4,703,620 | @ | Alcatel SA | 17,614,780 | |||||||||||
488,800 | AXA SA | 12,156,533 | ||||||||||||
158,232 | AXA SA ADR | 3,924,154 | ||||||||||||
246,100 | BNP Paribas | 18,539,730 | ||||||||||||
904,560 | Carrefour SA | 38,826,131 | ||||||||||||
987,800 | Credit Agricole SA | 18,921,462 | ||||||||||||
856,335 | France Telecom SA | 21,218,912 | ||||||||||||
262,516 | Lafarge SA | 21,308,366 | ||||||||||||
1,514,928 | @ | Natixis | 8,510,167 | |||||||||||
605,983 | Sanofi-Aventis | 44,419,835 | ||||||||||||
350,504 | @ | Total SA | 20,974,253 | |||||||||||
231,791,851 | ||||||||||||||
Germany: 7.3% | ||||||||||||||
197,200 | Allianz AG | 22,603,808 | ||||||||||||
337,200 | Bayerische Motoren Werke AG | 16,495,263 | ||||||||||||
79,500 | L | Deutsche Bank AG | 5,694,585 | |||||||||||
394,000 | Deutsche Post AG | 6,665,452 | ||||||||||||
2,333,119 | Deutsche Telekom AG | 31,882,967 | ||||||||||||
227,200 | MAN AG | 18,709,156 | ||||||||||||
227,945 | Siemens AG | 20,598,678 | ||||||||||||
122,649,909 | ||||||||||||||
Greece: 0.8% | ||||||||||||||
373,900 | @ | National Bank of Greece SA | 13,669,908 | |||||||||||
13,669,908 | ||||||||||||||
Hong Kong: 0.9% | ||||||||||||||
1,152,800 | L | China Unicom, Ltd. ADR | 14,582,920 | |||||||||||
14,582,920 | ||||||||||||||
Hungary: 0.6% | ||||||||||||||
383,300 | @ | OTP Bank Nyrt | 10,778,200 | |||||||||||
10,778,200 | ||||||||||||||
Italy: 3.6% | ||||||||||||||
2,186,582 | @ | Intesa Sanpaolo S.p.A. | 9,202,186 | |||||||||||
6,744,585 | Telecom Italia S.p.A. | 10,714,670 | ||||||||||||
20,598,316 | Telecom Italia S.p.A. RNC | 22,668,181 | ||||||||||||
5,090,000 | UniCredito Italiano S.p.A. | 17,052,545 | ||||||||||||
59,637,582 | ||||||||||||||
Japan: 22.2% | ||||||||||||||
701,000 | Akita Bank, Ltd. | 2,736,326 | ||||||||||||
307,400 | Astellas Pharma, Inc. | 11,319,654 | ||||||||||||
484,100 | Canon, Inc. ADR | 18,231,206 | ||||||||||||
902,000 | Dai Nippon Printing Co., Ltd. | 11,301,516 | ||||||||||||
575,836 | Daiichi Sankyo Co., Ltd. | 11,249,398 | ||||||||||||
804,600 | Fuji Photo Film Co., Ltd. | 22,874,198 | ||||||||||||
2,026,700 | @ | Hitachi, Ltd. | 6,543,922 | |||||||||||
844,000 | Kirin Brewery Co., Ltd. | 13,776,683 | ||||||||||||
336,300 | Konami Corp. | 6,118,710 | ||||||||||||
3,115,900 | Mitsubishi UFJ Financial Group, Inc. | 16,596,541 | ||||||||||||
3,480,000 | @ | Mitsui Chemicals, Inc. | 11,951,449 | |||||||||||
657,800 | Mitsui Sumitomo Insurance Group Holdings, Inc. | 15,312,294 | ||||||||||||
2,743,000 | @ | Mitsui Trust Holdings, Inc. | 10,017,231 | |||||||||||
6,614,700 | @ | Mizuho Financial Group, Inc. | 13,047,047 | |||||||||||
6,080,000 | @ | NEC Corp. | 17,281,480 | |||||||||||
518,600 | Nippon Telegraph & Telephone Corp. | 21,398,669 | ||||||||||||
416,000 | Ono Pharmaceutical Co., Ltd. | 19,750,737 | ||||||||||||
81,300 | ORIX Corp. | 5,251,559 | ||||||||||||
209,800 | Rohm Co., Ltd. | 13,913,293 | ||||||||||||
1,194,400 | Seven & I Holdings Co., Ltd. | 26,148,106 | ||||||||||||
1,542,700 | Sony Corp. | 45,554,089 | ||||||||||||
258,800 | Sumitomo Mitsui Financial Group, Inc. | 8,796,643 | ||||||||||||
270,000 | Taisho Pharmaceutical Co., Ltd. | 4,921,241 | ||||||||||||
874,700 | L | Takefuji Corp. | 3,273,259 | |||||||||||
145,800 | TDK Corp. | 8,382,893 | ||||||||||||
548,500 | Tokio Marine Holdings, Inc. | 14,025,355 | ||||||||||||
312,300 | Toyota Motor Corp. | 12,328,652 | ||||||||||||
372,102,151 | ||||||||||||||
Mexico: 1.0% | ||||||||||||||
864,465 | @ | Telefonos de Mexico SA de CV ADR | 14,358,764 | |||||||||||
249,620 | @ | Telmex Internacional SAB de CV ADR | 3,359,885 | |||||||||||
17,718,649 | ||||||||||||||
Netherlands: 6.4% | ||||||||||||||
2,855,747 | @ | Aegon NV | 20,297,036 | |||||||||||
195,200 | Akzo Nobel NV | 11,525,456 | ||||||||||||
1,464,612 | Koninklijke Ahold NV | 18,448,509 | ||||||||||||
822,900 | @ | Royal Dutch Shell PLC — Class A | 24,295,012 | |||||||||||
326,103 | Royal KPN NV | 5,915,092 | ||||||||||||
511,879 | @ | SNS Reaal | 3,618,075 | |||||||||||
434,100 | Unilever NV | 13,375,936 | ||||||||||||
429,333 | Wolters Kluwer NV | 9,571,177 | ||||||||||||
107,046,293 | ||||||||||||||
New Zealand: 0.5% | ||||||||||||||
4,260,475 | Telecom Corp. of New Zealand, Ltd. | 7,693,394 | ||||||||||||
7,693,394 | ||||||||||||||
Norway: 1.3% | ||||||||||||||
2,182,300 | @ | Norsk Hydro ASA | 14,302,725 | |||||||||||
205,400 | Yara International ASA | 6,789,923 | ||||||||||||
21,092,648 | ||||||||||||||
Portugal: 1.6% | ||||||||||||||
2,383,176 | Portugal Telecom SGPS SA | 27,240,904 | ||||||||||||
27,240,904 | ||||||||||||||
See Accompanying Notes to Financial Statements
159
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of October 31, 2009 (continued)
Shares | Value | |||||||||||||
Russia: 1.5% | ||||||||||||||
233,400 | Mobile Telesystems Finance SA ADR | $ | 10,573,020 | |||||||||||
1,853,100 | @,L | OAO Rosneft Oil Co. GDR | 14,090,650 | |||||||||||
24,663,670 | ||||||||||||||
Singapore: 0.7% | ||||||||||||||
983,000 | United Overseas Bank, Ltd. | 11,783,084 | ||||||||||||
11,783,084 | ||||||||||||||
South Korea: 1.9% | ||||||||||||||
322,410 | @ | Korea Electric Power Corp. | 9,135,819 | |||||||||||
368,410 | KT Corp. ADR | 5,912,981 | ||||||||||||
260,300 | @ | Shinhan Financial Group, Ltd. | 9,876,030 | |||||||||||
51,085 | SK Telecom Co., Ltd. | 7,780,169 | ||||||||||||
32,704,999 | ||||||||||||||
Spain: 1.5% | ||||||||||||||
1,223,000 | Iberdrola SA | 11,078,638 | ||||||||||||
484,602 | @ | Telefonica SA | 13,533,233 | |||||||||||
24,611,871 | ||||||||||||||
Sweden: 1.8% | ||||||||||||||
907,500 | L | Skanska AB | 13,317,496 | |||||||||||
1,605,060 | Telefonaktiebolaget LM Ericsson | 16,769,406 | ||||||||||||
30,086,902 | ||||||||||||||
Switzerland: 5.7% | ||||||||||||||
1,431,300 | STMicroelectronics NV | 11,486,533 | ||||||||||||
413,810 | Swiss Reinsurance | 16,850,590 | ||||||||||||
39,000 | Swisscom AG | 14,075,801 | ||||||||||||
1,278,100 | @ | UBS AG — Reg | 21,311,989 | |||||||||||
928,300 | @ | Xstrata PLC | 13,370,823 | |||||||||||
82,803 | Zurich Financial Services AG | 18,961,273 | ||||||||||||
96,057,009 | ||||||||||||||
Taiwan: 1.1% | ||||||||||||||
3,801,100 | Asustek Computer, Inc. | 6,981,310 | ||||||||||||
2,795,350 | HON HAI Precision Industry Co., Ltd. | 10,948,905 | ||||||||||||
17,930,215 | ||||||||||||||
United Kingdom: 15.0% | ||||||||||||||
500,550 | AstraZeneca PLC | 22,470,485 | ||||||||||||
5,253,391 | @ | Barclays PLC | 27,533,454 | |||||||||||
408,387 | @ | BP PLC ADR | 23,122,872 | |||||||||||
934,700 | British Sky Broadcasting PLC | 8,149,776 | ||||||||||||
2,044,480 | GlaxoSmithKline PLC | 41,937,867 | ||||||||||||
953,893 | HSBC Holdings PLC | 10,540,637 | ||||||||||||
679,181 | Imperial Tobacco Group PLC | 20,015,060 | ||||||||||||
2,116,500 | International Power PLC | 8,787,044 | ||||||||||||
9,912,826 | @ | ITV PLC | 6,932,958 | |||||||||||
2,924,900 | Kingfisher PLC | 10,690,860 | ||||||||||||
4,117,351 | Marks & Spencer Group PLC | 23,060,740 | ||||||||||||
6,389,172 | @ | Royal Bank of Scotland Group PLC | 4,358,561 | |||||||||||
7,349,200 | Vodafone Group PLC | 16,196,417 | ||||||||||||
3,684,731 | WM Morrison Supermarkets PLC | 16,887,872 | ||||||||||||
198,968 | @ | Wolseley PLC | 4,024,733 | |||||||||||
668,600 | WPP PLC | 5,991,935 | ||||||||||||
250,701,271 | ||||||||||||||
Total Common Stock (Cost $1,755,034,277) | 1,629,713,898 | |||||||||||||
SHORT-TERM INVESTMENTS: 6.2% | ||||||||||||||
Affiliated Mutual Fund: 3.4% | ||||||||||||||
56,070,000 | ING Institutional Prime Money Market Fund — Class I | 56,070,000 | ||||||||||||
Total Mutual Fund (Cost $56,070,000) | 56,070,000 | |||||||||||||
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Securities Lending CollateralCC: 2.8% | ||||||||||||||
$ | 46,485,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 46,485,000 | ||||||||||
1,202,292 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 961,834 | ||||||||||||
Total Securities Lending Collateral (Cost $47,687,292) | 47,446,834 | |||||||||||||
Total Short-Term Investments (Cost $103,757,292) | 103,516,834 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $1,858,791,569)* | 103.5 | % | $ | 1,733,230,732 | ||||||||||
Other Assets and Liabilities - Net | (3.5 | ) | (59,313,430 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 1,673,917,302 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) | |
to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | ||
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $1,874,520,908. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 201,183,608 | ||
Gross Unrealized Depreciation | (342,473,784 | ) | ||
Net Unrealized Depreciation | $ | (141,290,176 | ) | |
See Accompanying Notes to Financial Statements
160
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Value Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Agriculture | 1.2 | % | ||
Airlines | 0.3 | |||
Auto Manufacturers | 1.7 | |||
Banks | 14.4 | |||
Beverages | 0.8 | |||
Building Materials | 1.3 | |||
Chemicals | 1.8 | |||
Commercial Services | 0.9 | |||
Computers | 0.9 | |||
Distribution/Wholesale | 0.2 | |||
Diversified Financial Services | 1.7 | |||
Electric | 2.4 | |||
Electrical Components & Equipment | 0.4 | |||
Electronics | 2.4 | |||
Engineering & Construction | 0.8 | |||
Food | 5.2 | |||
Home Furnishings | 2.7 | |||
Insurance | 7.7 | |||
Machinery — Diversified | 1.1 | |||
Media | 1.8 | |||
Mining | 3.1 | |||
Miscellaneous Manufacturing | 3.7 | |||
Office/Business Equipment | 1.1 | |||
Oil & Gas | 6.4 | |||
Pharmaceuticals | 9.3 | |||
Retail | 3.6 | |||
Semiconductors | 1.5 | |||
Software | 0.4 | |||
Telecommunications | 18.1 | |||
Transportation | 0.4 | |||
Short-Term Investments | 6.2 | |||
Other Assets and Liabilities — Net | (3.5 | ) | ||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 10,094,917 | $ | — | $ | 10,094,917 | ||||||||
Bermuda | 15,326,786 | — | — | 15,326,786 | ||||||||||||
Brazil | 42,986,287 | — | — | 42,986,287 | ||||||||||||
Canada | 66,762,478 | — | — | 66,762,478 | ||||||||||||
France | 3,924,154 | 227,867,697 | — | 231,791,851 | ||||||||||||
Germany | 5,694,585 | 116,955,324 | — | 122,649,909 | ||||||||||||
Greece | — | 13,669,908 | — | 13,669,908 | ||||||||||||
Hong Kong | 14,582,920 | — | — | 14,582,920 | ||||||||||||
Hungary | — | 10,778,200 | — | 10,778,200 | ||||||||||||
Italy | — | 59,637,582 | — | 59,637,582 | ||||||||||||
Japan | 18,231,206 | 353,870,945 | — | 372,102,151 | ||||||||||||
Mexico | 17,718,649 | — | — | 17,718,649 | ||||||||||||
Netherlands | — | 107,046,293 | — | 107,046,293 | ||||||||||||
New Zealand | — | 7,693,394 | — | 7,693,394 | ||||||||||||
Norway | — | 21,092,648 | — | 21,092,648 | ||||||||||||
Portugal | — | 27,240,904 | — | 27,240,904 | ||||||||||||
Russia | 10,573,020 | 14,090,650 | — | 24,663,670 | ||||||||||||
Singapore | — | 11,783,084 | — | 11,783,084 | ||||||||||||
South Korea | 5,912,981 | 26,792,018 | — | 32,704,999 | ||||||||||||
Spain | — | 24,611,871 | — | 24,611,871 | ||||||||||||
Sweden | — | 30,086,902 | — | 30,086,902 | ||||||||||||
Switzerland | — | 96,057,009 | — | 96,057,009 | ||||||||||||
Taiwan | — | 17,930,215 | — | 17,930,215 | ||||||||||||
United Kingdom | 23,122,872 | 227,578,399 | — | 250,701,271 | ||||||||||||
Total Common Stock | 224,835,938 | 1,404,877,960 | — | 1,629,713,898 | ||||||||||||
Short-Term Investments | 102,555,000 | 961,834 | — | 103,516,834 | ||||||||||||
Total Investments, at value | $ | 327,390,938 | $ | 1,405,839,794 | $ | — | $ | 1,733,230,732 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
161
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Value Choice Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 93.4% | ||||||||||||||
Australia: 2.9% | ||||||||||||||
429,986 | @ | Alumina, Ltd. | $ | 630,999 | ||||||||||
27,952 | Newcrest Mining, Ltd. | 803,471 | ||||||||||||
1,434,470 | ||||||||||||||
Belgium: 1.9% | ||||||||||||||
25,273 | Belgacom SA | 946,567 | ||||||||||||
946,567 | ||||||||||||||
Bermuda: 1.0% | ||||||||||||||
17,365 | Axis Capital Holdings, Ltd. | 501,675 | ||||||||||||
501,675 | ||||||||||||||
Brazil: 1.7% | ||||||||||||||
45 | @ | Centrais Eletricas Brasileiras SA | 641 | |||||||||||
46,350 | @ | Centrais Eletricas Brasileiras SA ADR — Class B | 590,036 | |||||||||||
44,699 | @ | Empresa Brasileira de Aeronautica SA | 227,859 | |||||||||||
818,536 | ||||||||||||||
Canada: 10.7% | ||||||||||||||
49,250 | @ | Barrick Gold Corp. | 1,769,553 | |||||||||||
27,942 | @ | Ivanhoe Mines, Ltd. | 300,935 | |||||||||||
69,597 | @ | Kinross Gold Corp. | 1,293,112 | |||||||||||
23,621 | @ | Magna International, Inc. | 936,100 | |||||||||||
44,546 | @ | Nexen, Inc. | 956,403 | |||||||||||
5,256,103 | ||||||||||||||
Finland: 1.3% | ||||||||||||||
49,386 | Nokia OYJ ADR | 622,757 | ||||||||||||
622,757 | ||||||||||||||
France: 10.9% | ||||||||||||||
170,148 | @ | Alcatel SA | 637,194 | |||||||||||
700 | Areva SA | 367,893 | ||||||||||||
23,452 | Carrefour SA | 1,006,622 | ||||||||||||
19,417 | Sanofi-Aventis | 1,423,307 | ||||||||||||
6,416 | Societe Generale | 426,149 | ||||||||||||
7,390 | Technip SA | 463,634 | ||||||||||||
21,801 | Thales SA | 1,056,313 | ||||||||||||
5,381,112 | ||||||||||||||
Germany: 1.9% | ||||||||||||||
10,428 | Siemens AG | 942,346 | ||||||||||||
942,346 | ||||||||||||||
Italy: 3.5% | ||||||||||||||
34,228 | ERG S.p.A. | 505,213 | ||||||||||||
1,090,036 | Telecom Italia S.p.A. RNC | 1,199,571 | ||||||||||||
1,704,784 | ||||||||||||||
Japan: 31.3% | ||||||||||||||
73,400 | Coca-Cola West Holdings Co., Ltd. | 1,363,437 | ||||||||||||
104,000 | Dai Nippon Printing Co., Ltd. | 1,303,057 | ||||||||||||
39,600 | Fuji Photo Film Co., Ltd. | 1,125,799 | ||||||||||||
48,500 | JS Group Corp. | 791,545 | ||||||||||||
20,000 | Kao Corp. | 445,477 | ||||||||||||
28,500 | Mabuchi Motor Co., Ltd. | 1,363,797 | ||||||||||||
35,600 | Mitsui Sumitomo Insurance Group Holdings, Inc. | 828,698 | ||||||||||||
1,900 | Nintendo Co., Ltd. | 476,567 | ||||||||||||
64,973 | Nippon Telegraph & Telephone Corp. ADR | 1,334,545 | ||||||||||||
14,200 | Rohm Co., Ltd. | 941,701 | ||||||||||||
47,900 | Sega Sammy Holdings, Inc. | 680,105 | ||||||||||||
78,000 | Sekisui House, Ltd. | 674,523 | ||||||||||||
48,000 | Seven & I Holdings Co., Ltd. | 1,050,828 | ||||||||||||
65,600 | Shiseido Co., Ltd. | 1,197,669 | ||||||||||||
109,000 | Sumitomo Trust & Banking Co., Ltd. | 567,889 | ||||||||||||
23,600 | Toyo Seikan Kaisha, Ltd. | 396,477 | ||||||||||||
70,000 | Wacoal Holdings Corp. | 847,099 | ||||||||||||
15,389,213 | ||||||||||||||
Netherlands: 5.3% | ||||||||||||||
10,851 | @ | Gemalto NV | 456,040 | |||||||||||
22,967 | @ | Royal Dutch Shell PLC ADR — Class B | 1,335,761 | |||||||||||
36,761 | Wolters Kluwer NV | 819,518 | ||||||||||||
2,611,319 | ||||||||||||||
South Africa: 5.0% | ||||||||||||||
30,007 | Anglogold Ashanti, Ltd. ADR | 1,126,463 | ||||||||||||
69,224 | Gold Fields, Ltd. | 885,654 | ||||||||||||
19,678 | Impala Platinum Holdings, Ltd. | 432,985 | ||||||||||||
2,445,102 | ||||||||||||||
South Korea: 4.9% | ||||||||||||||
62,889 | @ | Korea Electric Power Corp. ADR | 872,899 | |||||||||||
91,840 | SK Telecom Co., Ltd. ADR | 1,534,648 | ||||||||||||
2,407,547 | ||||||||||||||
Switzerland: 4.3% | ||||||||||||||
31,681 | Novartis AG | 1,649,761 | ||||||||||||
29,393 | @ | UBS AG — Reg | 487,630 | |||||||||||
2,137,391 | ||||||||||||||
United Kingdom: 6.8% | ||||||||||||||
21,684 | @ | BP PLC ADR | 1,227,748 | |||||||||||
58,069 | @ | Rexam PLC | 262,949 | |||||||||||
84,438 | United Utilities Group PLC | 608,748 | ||||||||||||
554,224 | Vodafone Group PLC | 1,221,418 | ||||||||||||
3,320,863 | ||||||||||||||
Total Common Stock (Cost $48,483,184) | 45,919,785 | |||||||||||||
PREFERRED STOCK: 1.9% | ||||||||||||||
United States: 1.9% | ||||||||||||||
1,246 | P | Lucent Technologies Capital Trust I | 915,810 | |||||||||||
Total Preferred Stock (Cost $406,350) | 915,810 | |||||||||||||
Total Long-Term Investments (Cost $48,889,534) | 46,835,595 | |||||||||||||
SHORT-TERM INVESTMENTS: 3.4% | ||||||||||||||
Affiliated Mutual Fund: 3.4% | ||||||||||||||
1,670,572 | ING Institutional Prime Money Market Fund — Class I | 1,670,572 | ||||||||||||
Total Short-Term Investments (Cost $1,670,572) | 1,670,572 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $50,560,106)* | 98.7 | % | $ | 48,506,167 | ||||||||||
Other Assets and Liabilities - Net | 1.3 | 641,927 | ||||||||||||
Net Assets | 100.0 | % | $ | 49,148,094 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
P | Preferred Stock may be called prior to convertible date. | |
* | Cost for federal income tax purposes is $51,955,469. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 4,638,371 | ||
Gross Unrealized Depreciation | (8,087,673 | ) | ||
Net Unrealized Depreciation | $ | (3,449,302 | ) | |
See Accompanying Notes to Financial Statements
162
Table of Contents
PORTFOLIO OF INVESTMENTS
ING International Value Choice Fund
as of October 31, 2009 (continued)
Percentage of | ||||
Industry | Net Assets | |||
Aerospace/Defense | 2.6 | % | ||
Apparel | 1.7 | |||
Auto Parts & Equipment | 1.9 | |||
Banks | 3.0 | |||
Beverages | 2.8 | |||
Building Materials | 1.6 | |||
Commercial Services | 2.7 | |||
Computers | 0.9 | |||
Cosmetics/Personal Care | 3.3 | |||
Electric | 3.0 | |||
Electronics | 2.8 | |||
Energy — Alternate Sources | 0.8 | |||
Food | 2.0 | |||
Home Builders | 1.4 | |||
Insurance | 2.7 | |||
Leisure Time | 1.4 | |||
Media | 1.7 | |||
Mining | 14.7 | |||
Miscellaneous Manufacturing | 4.2 | |||
Oil & Gas | 8.2 | |||
Oil & Gas Services | 0.9 | |||
Packaging & Containers | 1.3 | |||
Pharmaceuticals | 6.3 | |||
Retail | 2.1 | |||
Semiconductors | 1.9 | |||
Telecommunications | 17.2 | |||
Toys/Games/Hobbies | 1.0 | |||
Water | 1.2 | |||
Short-Term Investments | 3.4 | |||
Other Assets and Liabilities — Net | 1.3 | |||
Net Assets | 100.0 | % | ||
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Australia | $ | — | $ | 1,434,470 | $ | — | $ | 1,434,470 | ||||||||
Belgium | — | 946,567 | — | 946,567 | ||||||||||||
Bermuda | 501,675 | — | — | 501,675 | ||||||||||||
Brazil | 818,536 | — | — | 818,536 | ||||||||||||
Canada | 5,256,103 | — | — | 5,256,103 | ||||||||||||
Finland | 622,757 | — | — | 622,757 | ||||||||||||
France | — | 5,381,112 | — | 5,381,112 | ||||||||||||
Germany | — | 942,346 | — | 942,346 | ||||||||||||
Italy | — | 1,704,784 | — | 1,704,784 | ||||||||||||
Japan | 1,334,545 | 14,054,668 | — | 15,389,213 | ||||||||||||
Netherlands | 1,335,761 | 1,275,558 | — | 2,611,319 | ||||||||||||
South Africa | 1,126,463 | 1,318,639 | — | 2,445,102 | ||||||||||||
South Korea | 2,407,547 | — | — | 2,407,547 | ||||||||||||
Switzerland | 487,630 | 1,649,761 | — | 2,137,391 | ||||||||||||
United Kingdom | 1,227,748 | 2,093,115 | — | 3,320,863 | ||||||||||||
Total Common Stock | 15,118,765 | 30,801,020 | — | 45,919,785 | ||||||||||||
Preferred Stock | — | 915,810 | — | 915,810 | ||||||||||||
Short-Term Investments | 1,670,572 | — | — | 1,670,572 | ||||||||||||
Total Investments, at value | $ | 16,789,337 | $ | 31,716,830 | $ | — | $ | 48,506,167 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
See Accompanying Notes to Financial Statements
163
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Russia Fund
as of October 31, 2009
Shares | Value | |||||||||||||
COMMON STOCK: 95.6% | ||||||||||||||
Airlines: 0.7% | ||||||||||||||
1,800,000 | I | Aeroflot — Russian International Airlines | $ | 2,610,000 | ||||||||||
2,610,000 | ||||||||||||||
Banks: 14.0% | ||||||||||||||
1,709,000 | I | Bank St. Petersburg BRD — Class S | 4,892,365 | |||||||||||
21,315,421 | Sberbank RF | 47,231,861 | ||||||||||||
52,124,226 | ||||||||||||||
Building Materials: 0.7% | ||||||||||||||
100,000 | @,I | Sibirskiy Cement OAO | 2,600,000 | |||||||||||
2,600,000 | ||||||||||||||
Chemicals: 0.9% | ||||||||||||||
145,400 | @ | Uralkali GDR | 3,272,746 | |||||||||||
3,272,746 | ||||||||||||||
Coal: 0.6% | ||||||||||||||
572,600 | Raspadskaya — Class S | 2,229,888 | ||||||||||||
2,229,888 | ||||||||||||||
Electric: 9.3% | ||||||||||||||
754,054,100 | @ | Federal Grid Co Unified Energy System JSC | 8,219,190 | |||||||||||
53,769,600 | @,I | Holding MRSK OAO | 6,282,440 | |||||||||||
55,561,900 | @ | Mosenergo OAO | 5,056,133 | |||||||||||
99,532,300 | @,I | OGK-2 OAO | 3,433,864 | |||||||||||
252,553,996 | @ | RusHydro | 8,839,390 | |||||||||||
5,787,696,000 | @ | Territorial Generating Co. 1 | 2,778,094 | |||||||||||
34,609,111 | ||||||||||||||
Food: 1.1% | ||||||||||||||
174,800 | @ | X5 Retail Group N.V. GDR | 4,195,200 | |||||||||||
4,195,200 | ||||||||||||||
Internet: 0.4% | ||||||||||||||
1,324,122 | @,I | RBC Information Systems | 1,644,560 | |||||||||||
1,644,560 | ||||||||||||||
Iron/Steel: 5.5% | ||||||||||||||
170,000 | @,L | Evraz Group SA GDR — Reg S | 4,118,950 | |||||||||||
577,000 | Mechel OAO ADR | 9,901,320 | ||||||||||||
2,571,400 | @ | Novolipetsk Steel | 6,699,993 | |||||||||||
20,720,263 | ||||||||||||||
Media: 0.5% | ||||||||||||||
110,000 | @ | CTC Media, Inc. | 1,768,800 | |||||||||||
1,768,800 | ||||||||||||||
Metal Fabricate/Hardware: 2.3% | ||||||||||||||
344,700 | @ | TMK OAO GDR | 6,226,966 | |||||||||||
32,800 | I | Vsmpo-Avisma Corp. | 2,230,400 | |||||||||||
8,457,366 | ||||||||||||||
Mining: 10.1% | ||||||||||||||
96,000 | @ | Kazakhmys PLC | 1,708,480 | |||||||||||
1,628,421 | @ | MMC Norilsk Nickel ADR | 21,391,787 | |||||||||||
497,600 | @ | Polymetal GDR | 4,393,808 | |||||||||||
381,500 | Polyus Gold Co. ZAO ADR | 10,306,361 | ||||||||||||
37,800,436 | ||||||||||||||
Oil & Gas: 37.4% | ||||||||||||||
744,500 | @ | Lukoil-Spon ADR | 43,189,679 | |||||||||||
155,100 | Novatek OAO GDR | 7,786,239 | ||||||||||||
3,048,700 | OAO Gazprom | 18,192,550 | ||||||||||||
605,497 | @ | OAO Gazprom ADR | 14,521,063 | |||||||||||
4,080,400 | @ | OAO Rosneft Oil Co. GDR | 31,026,650 | |||||||||||
1,387,400 | @,L | Surgutneftegaz ADR | 12,244,796 | |||||||||||
489,333 | Tatneft GDR | 12,672,202 | ||||||||||||
139,633,179 | ||||||||||||||
Pharmaceuticals: 1.1% | ||||||||||||||
246,865 | @ | Pharmstandard — Reg S GDR | 3,989,683 | |||||||||||
3,989,683 | ||||||||||||||
Real Estate: 2.0% | ||||||||||||||
811,680 | @ | LSR Group GDR | 6,079,483 | |||||||||||
33,000 | @,I | Open Investments | 1,485,000 | |||||||||||
7,564,483 | ||||||||||||||
Retail: 3.3% | ||||||||||||||
210,000 | Magnit OAO | 12,279,641 | ||||||||||||
12,279,641 | ||||||||||||||
Telecommunications: 5.5% | ||||||||||||||
568,400 | @ | Comstar United Telesystems GDR | 2,934,076 | |||||||||||
198,100 | Mobile Telesystems Finance SA ADR | 8,973,930 | ||||||||||||
243,000 | @ | Sistema JSFC GDR | 3,956,040 | |||||||||||
128,700 | @ | Vimpel-Communications OAO ADR | 2,307,591 | |||||||||||
1,145,400 | I | VolgaTelecom | 2,348,070 | |||||||||||
20,519,707 | ||||||||||||||
Transportation: 0.2% | ||||||||||||||
6,060,000 | Novorossiysk Sea Trade Port BRD | 915,060 | ||||||||||||
915,060 | ||||||||||||||
Total Common Stock (Cost $374,561,238) | 356,934,349 | |||||||||||||
EXCHANGE-TRADED FUNDS: 0.6% | ||||||||||||||
Exchange-Traded Funds: 0.6% | ||||||||||||||
76,500 | @ | Market Vectors Russia ETF | 2,143,530 | |||||||||||
Total Exchange-Traded Funds (Cost $1,199,271) | 2,143,530 | |||||||||||||
HEDGE FUNDS: 0.4% | ||||||||||||||
Hedge Fund: 0.4% | ||||||||||||||
636,687 | @,I,X | RenShares Utilities, Ltd. | 1,299,101 | |||||||||||
Total Hedge Funds (Cost $752,296) | 1,299,101 | |||||||||||||
PREFERRED STOCK: 1.1% | ||||||||||||||
Oil & Gas: 1.1% | ||||||||||||||
10,200,000 | Surgutneftegaz | 4,182,000 | ||||||||||||
Total Preferred Stock (Cost $3,205,101) | 4,182,000 | |||||||||||||
Total Long-Term Investments (Cost $379,717,906) | 364,558,980 | |||||||||||||
See Accompanying Notes to Financial Statements
164
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Russia Fund
as of October 31, 2009 (continued)
Principal | ||||||||||||||
Amount | Value | |||||||||||||
SHORT-TERM INVESTMENTS: 3.2% | ||||||||||||||
Securities Lending CollateralCC: 3.2% | ||||||||||||||
$ | 11,461,000 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series A(1) | $ | 11,461,000 | ||||||||||
841,448 | Bank of New York Mellon Corp. Institutional Cash Reserves, Series B(1)(2) | 673,158 | ||||||||||||
Total Short-Term Investments (Cost $12,302,448) | 12,134,158 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $392,020,354)* | 100.9 | % | $ | 376,693,138 | ||||||||||
Other Assets and Liabilities - Net | (0.9 | ) | (3,441,168 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 373,251,970 | ||||||||||
@ | Non-income producing security | |
ADR | American Depositary Receipt | |
GDR | Global Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
(1) | Collateral received from brokers for securities lending was invested in these short-term investments. | |
(2) | On September 12, 2008, BNY established a separate sleeve of the Institutional Cash Reserves Fund (Series B) | |
to hold certain Lehman Brothers defaulted debt obligations. The Fund’s position in Series B is being marked to market daily. Please see the accompanying Notes to Financial Statements for additional details on securities lending. | ||
I | Illiquid security | |
L | Loaned security, a portion or all of the security is on loan at October 31, 2009. | |
* | Cost for federal income tax purposes is $392,470,823. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 47,659,239 | ||
Gross Unrealized Depreciation | (63,436,924 | ) | ||
Net Unrealized Depreciation | $ | (15,777,685 | ) | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | ||||||||||||||||
in Active Markets | Significant Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Common Stock | ||||||||||||||||
Airlines | $ | 2,610,000 | $ | — | $ | — | $ | 2,610,000 | ||||||||
Banks | — | 52,124,226 | — | 52,124,226 | ||||||||||||
Building Materials | 2,600,000 | — | — | 2,600,000 | ||||||||||||
Chemicals | — | 3,272,746 | — | 3,272,746 | ||||||||||||
Coal | — | 2,229,888 | — | 2,229,888 | ||||||||||||
Electric | 11,268,091 | 23,341,020 | — | 34,609,111 | ||||||||||||
Food | 4,195,200 | — | — | 4,195,200 | ||||||||||||
Internet | 1,644,560 | — | — | 1,644,560 | ||||||||||||
Iron/Steel | 16,601,313 | 4,118,950 | — | 20,720,263 | ||||||||||||
Media | 1,768,800 | — | — | 1,768,800 | ||||||||||||
Metal Fabricate/ Hardware | 2,230,400 | 6,226,966 | — | 8,457,366 | ||||||||||||
Mining | 4,393,808 | 33,406,628 | — | 37,800,436 | ||||||||||||
Oil & Gas | — | 139,633,179 | — | 139,633,179 | ||||||||||||
Pharmaceuticals | — | 3,989,683 | — | 3,989,683 | ||||||||||||
Real Estate | 7,564,483 | — | — | 7,564,483 | ||||||||||||
Retail | — | 12,279,641 | — | 12,279,641 | ||||||||||||
Telecommunications | 17,585,631 | 2,934,076 | — | 20,519,707 | ||||||||||||
Transportation | 915,060 | — | — | 915,060 | ||||||||||||
Total Common Stock | 73,377,346 | 283,557,003 | — | 356,934,349 | ||||||||||||
Exchange-Traded Funds | 2,143,530 | — | — | 2,143,530 | ||||||||||||
Hedge Funds | — | — | 1,299,101 | 1,299,101 | ||||||||||||
Preferred Stock | 4,182,000 | — | — | 4,182,000 | ||||||||||||
Short-Term Investments | 11,461,000 | 673,158 | — | 12,134,158 | ||||||||||||
Total Investments, at value | $ | 91,163,876 | $ | 284,230,161 | $ | 1,299,101 | $ | 376,693,138 | ||||||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended October 31, 2009:
Change In | ||||||||||||||||||||||||||||||||||||||||||||
Beginning | Accrued | Total | Unrealized | Transfers | Transfers | Ending | ||||||||||||||||||||||||||||||||||||||
Balance | Discounts/ | Realized | Appreciation/ | Into | Out of | Balance | ||||||||||||||||||||||||||||||||||||||
at 10/31/2008 | Purchases | Issuances | Settlements | Sales | (Premiums) | Gain/(Loss) | (Depreciation) | Level 3 | Level 3 | at 10/31/2009 | ||||||||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||||||||||
Investments, at value | ||||||||||||||||||||||||||||||||||||||||||||
Hedge Funds | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,299,101 | $ | — | $ | 1,299,101 | ||||||||||||||||||||||
Total Investments, at value | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,299,101 | $ | — | $ | 1,299,101 | ||||||||||||||||||||||
As of October 31, 2009, total change in unrealized gain (loss) on Level 3 securities still held at year end and included in the change in net assets was $992,885.
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
Transfers into Level 3 represents either the beginning balance (for transfer in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period.
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
x | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
See Accompanying Notes to Financial Statements
165
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009
Principal | ||||||||||||||
Amount | Value | |||||||||||||
CORPORATE BONDS/NOTES: 36.8% | ||||||||||||||
Agriculture: 0.6% | ||||||||||||||
$ | 900,000 | Altria Group, Inc., 9.700%, due 11/10/18 | $ | 1,109,801 | ||||||||||
498,000 | Philip Morris International, Inc., 6.875%, due 03/17/14 | 570,630 | ||||||||||||
1,680,431 | ||||||||||||||
Banks: 6.2% | ||||||||||||||
200,000 | Bank of America Corp., 5.420%, due 03/15/17 | 196,030 | ||||||||||||
1,177,000 | # | Barclays Bank PLC, 6.050%, due 12/04/17 | 1,201,044 | |||||||||||
781,000 | # | Barclays Bank PLC, 7.375%, due 06/29/49 | 714,615 | |||||||||||
636,000 | BB&T Corp., 3.850%, due 07/27/12 | 657,875 | ||||||||||||
140,000 | Capital One Financial Corp., 7.375%, due 05/23/14 | 159,053 | ||||||||||||
1,200,000 | Citigroup, Inc., 5.000%, due 09/15/14 | 1,184,460 | ||||||||||||
449,000 | Citigroup, Inc., 6.375%, due 08/12/14 | 476,822 | ||||||||||||
801,000 | Citigroup, Inc., 8.500%, due 05/22/19 | 937,877 | ||||||||||||
5,147,000 | Deutsche Bank AG, London-Republic of Indonesia Government Bond Credit Linked Notes, 13.150%, due 01/25/12 | 5,152,147 | ||||||||||||
651,000 | Fifth Third Bancorp., 8.250%, due 03/01/38 | 628,486 | ||||||||||||
518,000 | Goldman Sachs Group, Inc., 5.450%, due 11/01/12 | 557,760 | ||||||||||||
500,000 | Goldman Sachs Group, Inc., 6.250%, due 09/01/17 | 535,782 | ||||||||||||
1,082,000 | # | HSBC Capital Funding L.P./Jersey Channel Islands, 9.547%, due 12/29/49 | 1,119,870 | |||||||||||
664,000 | JPMorgan Chase & Co., 4.650%, due 06/01/14 | 701,155 | ||||||||||||
250,000 | JPMorgan Chase Bank NA, 5.875%, due 06/13/16 | 264,972 | ||||||||||||
1,486,000 | Morgan Stanley, 7.300%, due 05/13/19 | 1,667,820 | ||||||||||||
3,000 | National City Corp., 6.875%, due 05/15/19 | 3,244 | ||||||||||||
658,000 | Wachovia Bank NA, 6.000%, due 11/15/17 | 696,736 | ||||||||||||
851,000 | Wachovia Bank NA, 6.600%, due 01/15/38 | 929,883 | ||||||||||||
533,000 | Wells Fargo Capital XIII, 7.700%, due 12/29/49 | 498,355 | ||||||||||||
18,283,986 | ||||||||||||||
Beverages: 1.8% | ||||||||||||||
684,000 | Anheuser-Busch Cos., Inc., 5.500%, due 01/15/18 | 701,397 | ||||||||||||
540,000 | # | Anheuser-Busch InBev Worldwide, Inc., 5.375%, due 11/15/14 | 574,786 | |||||||||||
565,000 | # | Anheuser-Busch InBev Worldwide, Inc., 7.750%, due 01/15/19 | 659,517 | |||||||||||
1,096,000 | Diageo Capital PLC, 5.200%, due 01/30/13 | 1,176,101 | ||||||||||||
1,330,000 | Dr Pepper Snapple Group, Inc., 6.820%, due 05/01/18 | 1,522,044 | ||||||||||||
469,000 | PepsiCo, Inc., 7.900%, due 11/01/18 | 590,409 | ||||||||||||
5,224,254 | ||||||||||||||
Building Materials: 0.1% | ||||||||||||||
335,000 | # | Voto-Votorantim Overseas Trading Operations NV, 6.625%, due 09/25/19 | 323,275 | |||||||||||
323,275 | ||||||||||||||
Chemicals: 0.6% | ||||||||||||||
473,000 | # | Chevron Phillips Chemical Co. LLC, 8.250%, due 06/15/19 | 562,632 | |||||||||||
397,000 | Dow Chemical Co., 7.600%, due 05/15/14 | 441,516 | ||||||||||||
245,000 | # | Nova Chemicals Corp., 8.375%, due 11/01/16 | 247,450 | |||||||||||
505,000 | # | Nova Chemicals Corp., 8.625%, due 11/01/19 | 513,838 | |||||||||||
45,000 | Solutia, Inc., 8.750%, due 11/01/17 | 46,800 | ||||||||||||
1,812,236 | ||||||||||||||
Coal: 0.1% | ||||||||||||||
300,000 | # | Arch Coal, Inc., 8.750%, due 08/01/16 | 309,000 | |||||||||||
309,000 | ||||||||||||||
Commercial Services: 0.2% | ||||||||||||||
575,000 | &, # | ServiceMaster Co, 10.750%, due 07/15/15 | 575,000 | |||||||||||
575,000 | ||||||||||||||
Computers: 0.5% | ||||||||||||||
150,000 | Hewlett-Packard Co., 4.750%, due 06/02/14 | 161,180 | ||||||||||||
576,000 | Hewlett-Packard Co., 5.500%, due 03/01/18 | 624,533 | ||||||||||||
256,000 | International Business Machines Corp., 8.000%, due 10/15/38 | 350,745 | ||||||||||||
505,000 | Seagate Technology, Inc., 6.800%, due 10/01/16 | 497,425 | ||||||||||||
1,633,883 | ||||||||||||||
Diversified Financial Services: 1.9% | ||||||||||||||
248,000 | American Express Credit Corp., 5.125%, due 08/25/14 | 261,547 | ||||||||||||
505,000 | American Express Credit Corp., 7.300%, due 08/20/13 | 567,627 | ||||||||||||
252,000 | Capital One Bank USA NA, 6.500%, due 06/13/13 | 268,934 | ||||||||||||
631,000 | Capital One Bank USA NA, 8.800%, due 07/15/19 | 748,637 | ||||||||||||
331,000 | FIA Card Services NA, 6.625%, due 06/15/12 | 356,969 | ||||||||||||
340,000 | # | Fibria Overseas Finance, Ltd., 9.250%, due 10/30/19 | 358,020 | |||||||||||
220,000 | General Electric Capital Corp., 6.000%, due 08/07/19 | 231,667 | ||||||||||||
440,000 | General Electric Capital Corp., 6.875%, due 01/10/39 | 475,707 |
See Accompanying Notes to Financial Statements
166
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Diversified Financial Services (continued) | ||||||||||||||
$ | 264,000 | # | Iberdrola Finance Ireland, Ltd., 3.800%, due 09/11/14 | $ | 266,745 | |||||||||
361,000 | # | Iberdrola Finance Ireland, Ltd., 5.000%, due 09/11/19 | 364,700 | |||||||||||
619,000 | International Lease Finance Corp., 6.625%, due 11/15/13 | 478,023 | ||||||||||||
150,000 | John Deere Capital Corp., 5.350%, due 04/03/18 | 159,811 | ||||||||||||
741,000 | Merrill Lynch & Co., Inc., 6.875%, due 04/25/18 | 799,123 | ||||||||||||
210,000 | National Rural Utilities Cooperative Finance Corp., 10.375%, due 11/01/18 | 279,785 | ||||||||||||
5,617,295 | ||||||||||||||
Electric: 3.0% | ||||||||||||||
750,000 | AES Corp., 8.000%, due 10/15/17 | 757,500 | ||||||||||||
426,000 | # | Allegheny Energy Supply Co. LLC, 5.750%, due 10/15/19 | 420,692 | |||||||||||
64,000 | Commonwealth Edison Co., 4.700%, due 04/15/15 | 66,924 | ||||||||||||
923,000 | Commonwealth Edison Co., 6.150%, due 03/15/12 | 1,005,722 | ||||||||||||
519,000 | Constellation Energy Group, 7.600%, due 04/01/32 | 556,310 | ||||||||||||
9,000 | Duke Energy Corp., 3.950%, due 09/15/14 | 9,174 | ||||||||||||
670,000 | Duke Energy Corp., 6.300%, due 02/01/14 | 741,527 | ||||||||||||
438,000 | Entergy Texas, Inc., 7.125%, due 02/01/19 | 490,754 | ||||||||||||
430,000 | Indiana Michigan Power, 7.000%, due 03/15/19 | 486,190 | ||||||||||||
464,000 | Metropolitan Edison, 7.700%, due 01/15/19 | 545,407 | ||||||||||||
711,000 | Nevada Power Co., 7.125%, due 03/15/19 | 813,261 | ||||||||||||
677,000 | Oncor Electric Delivery Co., 5.950%, due 09/01/13 | 734,244 | ||||||||||||
527,000 | Progress Energy, Inc., 6.050%, due 03/15/14 | 580,608 | ||||||||||||
179,000 | Progress Energy, Inc., 7.050%, due 03/15/19 | 207,363 | ||||||||||||
476,000 | Southwestern Electric Power, 5.550%, due 01/15/17 | 486,802 | ||||||||||||
874,000 | Tampa Electric Co., 6.100%, due 05/15/18 | 948,487 | ||||||||||||
8,850,965 | ||||||||||||||
Electronics: 0.1% | ||||||||||||||
355,000 | Jabil Circuit, Inc., 7.750%, due 07/15/16 | 370,088 | ||||||||||||
370,088 | ||||||||||||||
Entertainment: 0.7% | ||||||||||||||
740,000 | AMC Entertainment, Inc., 8.750%, due 06/01/19 | 762,200 | ||||||||||||
510,000 | # | Pinnacle Entertainment, Inc., 8.625%, due 08/01/17 | 510,000 | |||||||||||
700,000 | # | Warner Music Group, 9.500%, due 06/15/16 | 750,750 | |||||||||||
125,000 | + | WMG Holdings Corp., 0.000%, step rate 9.500%, due 12/15/14 | 124,375 | |||||||||||
2,147,325 | ||||||||||||||
Food: 1.3% | ||||||||||||||
520,000 | # | HJ Heinz Finance Co., 7.125%, due 08/01/39 | 600,224 | |||||||||||
466,000 | Kraft Foods, Inc., 6.125%, due 02/01/18 | 494,712 | ||||||||||||
408,000 | Kraft Foods, Inc., 6.125%, due 08/23/18 | 434,498 | ||||||||||||
500,000 | Kraft Foods, Inc., 6.500%, due 08/11/17 | 542,333 | ||||||||||||
1,130,000 | Safeway Inc., 5.000%, due 08/15/19 | 1,147,819 | ||||||||||||
555,000 | # | Smithfield Foods, Inc., 10.000%, due 07/15/14 | 585,525 | |||||||||||
3,805,111 | ||||||||||||||
Forest Products & Paper: 0.1% | ||||||||||||||
250,000 | Weyerhaeuser Co., 7.375%, due 10/01/19 | 258,157 | ||||||||||||
258,157 | ||||||||||||||
Gas: 0.2% | ||||||||||||||
554,000 | Sempra Energy, 6.500%, due 06/01/16 | 609,260 | ||||||||||||
609,260 | ||||||||||||||
Healthcare — Products: 0.3% | ||||||||||||||
715,000 | & | Biomet, Inc., 10.375%, due 10/15/17 | 773,094 | |||||||||||
773,094 | ||||||||||||||
Healthcare — Services: 0.3% | ||||||||||||||
705,000 | & | HCA, Inc., 9.625%, due 11/15/16 | 749,944 | |||||||||||
749,944 | ||||||||||||||
Holding Companies — Diversified: 0.3% | ||||||||||||||
620,000 | # | Noble Group, Ltd., 6.750%, due 01/29/20 | 623,004 | |||||||||||
165,000 | # | Reynolds Group DL Escrow, Inc./Reynolds Group Escrow LLC, 7.750%, due 10/15/16 | 165,825 | |||||||||||
788,829 | ||||||||||||||
Hotels: 0.0% | ||||||||||||||
135,000 | # | Felcor Lodging L.P., 10.000%, due 10/01/14 | 133,988 | |||||||||||
133,988 | ||||||||||||||
Household Products/Wares: 0.4% | ||||||||||||||
65,000 | # | ACCO Brands Corp., 10.625%, due 03/15/15 | 69,875 | |||||||||||
785,000 | Kimberly-Clark Corp., 7.500%, due 11/01/18 | 976,336 | ||||||||||||
1,046,211 | ||||||||||||||
Insurance: 1.4% | ||||||||||||||
1,201,000 | Ace INA Holdings, Inc., 5.900%, due 06/15/19 | 1,316,986 | ||||||||||||
709,000 | Metlife, Inc., 7.717%, due 02/15/19 | 840,992 | ||||||||||||
604,000 | # | Pacific Life Insurance Co., 9.250%, due 06/15/39 | 673,542 |
See Accompanying Notes to Financial Statements
167
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Insurance (continued) | ||||||||||||||
$ | 219,000 | Principal Financial Group, Inc., 7.875%, due 05/15/14 | $ | 245,837 | ||||||||||
611,000 | Protective Life Corp., 8.450%, due 10/15/39 | 600,232 | ||||||||||||
506,000 | Prudential Financial, Inc., 7.375%, due 06/15/19 | 566,332 | ||||||||||||
4,243,921 | ||||||||||||||
Investment Companies: 0.1% | ||||||||||||||
231,000 | # | Xstrata Finance Canada Ltd, 5.500%, due 11/16/11 | 240,561 | |||||||||||
240,561 | ||||||||||||||
Iron/Steel: 0.3% | ||||||||||||||
271,000 | ArcelorMittal, 7.000%, due 10/15/39 | 257,033 | ||||||||||||
752,000 | # | CSN Islands XI Corp., 6.875%, due 09/21/19 | 736,960 | |||||||||||
993,993 | ||||||||||||||
Lodging: 0.6% | ||||||||||||||
991,000 | # | Hyatt Hotels Corp., 6.875%, due 08/15/19 | 1,012,778 | |||||||||||
735,000 | # | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp., 7.875%, due 11/01/17 | 725,813 | |||||||||||
1,738,591 | ||||||||||||||
Machinery — Diversified: 0.1% | ||||||||||||||
320,000 | # | Case New Holland, Inc., 7.750%, due 09/01/13 | 319,200 | |||||||||||
319,200 | ||||||||||||||
Media: 3.1% | ||||||||||||||
530,000 | # | Cablevision Systems Corp., 8.625%, due 09/15/17 | 551,200 | |||||||||||
675,000 | Comcast Corp., 5.700%, due 05/15/18 | 707,618 | ||||||||||||
76,000 | Comcast Corp., 5.900%, due 03/15/16 | 81,622 | ||||||||||||
250,000 | Comcast Corp., 6.300%, due 11/15/17 | 270,983 | ||||||||||||
718,000 | Comcast Corp., 6.550%, due 07/01/39 | 750,724 | ||||||||||||
751,000 | # | COX Communications, Inc., 6.250%, due 06/01/18 | 791,419 | |||||||||||
700,000 | Echostar DBS Corp., 7.125%, due 02/01/16 | 703,500 | ||||||||||||
460,000 | # | Mediacom LLC / Mediacom Capital Corp., 9.125%, due 08/15/19 | 477,250 | |||||||||||
773,000 | # | News America, Inc., 5.650%, due 08/15/20 | 802,350 | |||||||||||
397,000 | News America, Inc., 6.150%, due 03/01/37 | 387,138 | ||||||||||||
389,000 | News America, Inc., 6.900%, due 03/01/19 | 436,880 | ||||||||||||
159,000 | Time Warner Cable, Inc., 6.200%, due 07/01/13 | 174,334 | ||||||||||||
350,000 | Time Warner Cable, Inc., 6.750%, due 07/01/18 | 385,942 | ||||||||||||
937,000 | Time Warner Cable, Inc., 6.750%, due 06/15/39 | 995,672 | ||||||||||||
303,000 | Time Warner Cable, Inc., 8.750%, due 02/14/19 | 374,345 | ||||||||||||
353,000 | Time Warner, Inc., 5.500%, due 11/15/11 | 377,565 | ||||||||||||
446,000 | Time Warner, Inc., 7.700%, due 05/01/32 | 505,296 | ||||||||||||
373,000 | Viacom, Inc., 6.875%, due 04/30/36 | 394,918 | ||||||||||||
9,168,756 | ||||||||||||||
Mining: 0.5% | ||||||||||||||
332,000 | Newmont Mining Corp., 5.125%, due 10/01/19 | 332,248 | ||||||||||||
430,000 | Newmont Mining Corp., 6.250%, due 10/01/39 | 420,738 | ||||||||||||
304,000 | Rio Tinto Finance USA, Ltd., 8.950%, due 05/01/14 | 359,629 | ||||||||||||
468,000 | Vale Overseas, Ltd., 5.625%, due 09/15/19 | 469,451 | ||||||||||||
1,582,066 | ||||||||||||||
Miscellaneous Manufacturing: 0.6% | ||||||||||||||
900,000 | General Electric Co., 5.250%, due 12/06/17 | 937,850 | ||||||||||||
673,000 | Tyco International Finance, 8.500%, due 01/15/19 | 822,203 | ||||||||||||
1,760,053 | ||||||||||||||
Oil & Gas: 1.6% | ||||||||||||||
116,000 | Anadarko Petroleum Corp., 5.750%, due 06/15/14 | 124,900 | ||||||||||||
700,000 | Chesapeake Energy Corp., 7.250%, due 12/15/18 | 680,750 | ||||||||||||
265,000 | ConocoPhillips, 5.750%, due 02/01/19 | 290,535 | ||||||||||||
506,000 | Hess Corp., 7.000%, due 02/15/14 | 570,119 | ||||||||||||
1,000,000 | # | KazMunaiGaz Finance Sub BV, 11.750%, due 01/23/15 | 1,200,000 | |||||||||||
424,000 | Marathon Oil Corp., 6.500%, due 02/15/14 | 472,080 | ||||||||||||
115,000 | Marathon Oil Corp., 7.500%, due 02/15/19 | 135,052 | ||||||||||||
300,000 | Petrobras International Finance Co., 7.875%, due 03/15/19 | 340,500 | ||||||||||||
525,000 | Plains Exploration & Production Co., 8.625%, due 10/15/19 | 528,938 | ||||||||||||
250,000 | # | Ras Laffan Liquefied Natural Gas Co., Ltd. III, 4.500%, due 09/30/12 | 259,771 | |||||||||||
250,000 | # | Ras Laffan Liquefied Natural Gas Co., Ltd. III, 5.500%, due 09/30/14 | 268,035 | |||||||||||
4,870,680 | ||||||||||||||
Oil & Gas Services: 0.1% | ||||||||||||||
140,000 | Weatherford International, Ltd., 9.625%, due 03/01/19 | 173,607 | ||||||||||||
173,607 | ||||||||||||||
Pharmaceuticals: 0.8% | ||||||||||||||
207,000 | Express Scripts, Inc., 6.250%, due 06/15/14 | 227,669 | ||||||||||||
52,000 | Express Scripts, Inc., 7.250%, due 06/15/19 | 60,430 | ||||||||||||
428,000 | Novartis Securities Investment, Ltd., 5.125%, due 02/10/19 | 456,512 |
See Accompanying Notes to Financial Statements
168
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Pharmaceuticals (continued) | ||||||||||||||
$ | 604,000 | Pfizer, Inc., 6.200%, due 03/15/19 | $ | 688,906 | ||||||||||
790,000 | Pfizer, Inc., 7.200%, due 03/15/39 | 996,103 | ||||||||||||
2,429,620 | ||||||||||||||
Pipelines: 0.5% | ||||||||||||||
411,000 | Enbridge Energy Partners, 9.875%, due 03/01/19 | 519,468 | ||||||||||||
246,000 | Energy Transfer Partners, 9.700%, due 03/15/19 | 305,092 | ||||||||||||
90,000 | Trans-Canada Pipelines, 7.125%, due 01/15/19 | 107,198 | ||||||||||||
99,000 | Trans-Canada Pipelines, 7.625%, due 01/15/39 | 126,774 | ||||||||||||
479,000 | Transcontinental Gas Pipe Line Co. LLC, 6.050%, due 06/15/18 | 514,967 | ||||||||||||
1,573,499 | ||||||||||||||
Regional Malls: 0.3% | ||||||||||||||
726,000 | Simon Property Group, Inc., 6.750%, due 05/15/14 | 781,947 | ||||||||||||
781,947 | ||||||||||||||
Retail: 1.9% | ||||||||||||||
490,000 | CVS Caremark Corp., 5.750%, due 06/01/17 | 528,020 | ||||||||||||
1,423,000 | CVS Caremark Corp., 6.125%, due 09/15/39 | 1,442,458 | ||||||||||||
278,000 | CVS Caremark Corp., 6.600%, due 03/15/19 | 310,585 | ||||||||||||
1,831,000 | Home Depot, Inc., 5.875%, due 12/16/36 | 1,791,986 | ||||||||||||
625,000 | # | Limited Brands, 8.500%, due 06/15/19 | 659,375 | |||||||||||
230,000 | # | QVC, Inc., 7.500%, due 10/01/19 | 228,850 | |||||||||||
505,000 | # | Toys R Us Property Co. I LLC, 10.750%, due 07/15/17 | 550,450 | |||||||||||
5,511,724 | ||||||||||||||
Software: 0.1% | ||||||||||||||
159,000 | Oracle Corp., 5.250%, due 01/15/16 | 172,969 | ||||||||||||
86,000 | Oracle Corp., 5.750%, due 04/15/18 | 94,656 | ||||||||||||
267,625 | ||||||||||||||
Telecommunications: 5.8% | ||||||||||||||
304,000 | Alltel Corp., 7.000%, due 03/15/16 | 343,531 | ||||||||||||
737,000 | AT&T, Inc., 6.550%, due 02/15/39 | 799,939 | ||||||||||||
681,000 | AT&T, Inc., 6.700%, due 11/15/13 | 774,206 | ||||||||||||
470,000 | British Telecommunications PLC, 5.950%, due 01/15/18 | 473,982 | ||||||||||||
450,000 | CenturyTel, Inc., 7.600%, due 09/15/39 | 441,561 | ||||||||||||
489,000 | Cisco Systems, Inc., 5.900%, due 02/15/39 | 522,087 | ||||||||||||
255,000 | Cricket Communications, Inc., 9.375%, due 11/01/14 | 248,625 | ||||||||||||
655,000 | Crown Castle International Corp., 7.125%, due 11/01/19 | 648,450 | ||||||||||||
905,000 | Embarq Corp., 7.995%, due 06/01/36 | 939,017 | ||||||||||||
904,000 | France Telecom SA, 4.375%, due 07/08/14 | 955,250 | ||||||||||||
1,048,000 | France Telecom SA, 5.375%, due 07/08/19 | 1,126,302 | ||||||||||||
387,000 | France Telecom SA, 8.500%, due 03/01/31 | 531,002 | ||||||||||||
705,000 | Frontier Communications Corp., 8.125%, due 10/01/18 | 711,169 | ||||||||||||
510,000 | # | Intelsat Subsidiary Holding Co., Ltd., 8.875%, due 01/15/15 | 514,463 | |||||||||||
250,000 | MetroPCS Wireless, Inc., 9.250%, due 11/01/14 | 253,125 | ||||||||||||
250,000 | Nextel Communications, Inc., 5.950%, due 03/15/14 | 219,063 | ||||||||||||
295,000 | Nokia OYJ, 5.375%, due 05/15/19 | 305,222 | ||||||||||||
700,000 | Qwest Communications International, Inc., 7.500%, due 02/15/14 | 689,500 | ||||||||||||
500,000 | Sprint Nextel Corp., 6.000%, due 12/01/16 | 432,500 | ||||||||||||
409,000 | Telecom Italia Capital SA, 6.175%, due 06/18/14 | 444,131 | ||||||||||||
249,000 | Telefonica Emisones SAU, 5.877%, due 07/15/19 | 269,638 | ||||||||||||
770,000 | Telefonica Emisones SAU, 6.421%, due 06/20/16 | 855,444 | ||||||||||||
353,000 | TELUS Corp., 8.000%, due 06/01/11 | 384,941 | ||||||||||||
376,000 | Verizon Communications, Inc., 8.950%, due 03/01/39 | 512,231 | ||||||||||||
419,000 | # | Verizon Wireless Capital LLC, 3.750%, due 05/20/11 | 433,298 | |||||||||||
1,000,000 | # | Verizon Wireless Capital LLC, 5.550%, due 02/01/14 | 1,090,642 | |||||||||||
1,280,000 | Vodafone Group PLC, 5.450%, due 06/10/19 | 1,344,643 | ||||||||||||
750,000 | # | Windstream Corp., 7.875%, due 11/01/17 | 761,250 | |||||||||||
17,025,212 | ||||||||||||||
Transportation: 0.2% | ||||||||||||||
291,000 | Union Pacific Corp., 5.125%, due 02/15/14 | 312,432 | ||||||||||||
350,000 | Union Pacific Corp., 5.700%, due 08/15/18 | 376,893 | ||||||||||||
689,325 | ||||||||||||||
Warehouse/Industrial: 0.1% | ||||||||||||||
312,000 | ProLogis, 7.375%, due 10/30/19 | 313,527 | ||||||||||||
313,527 | ||||||||||||||
Total Corporate Bonds/Notes (Cost $100,038,575 ) | 108,676,239 | |||||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS: 3.4% | ||||||||||||||
Federal Home Loan Mortgage Corporation##: 0.9% | ||||||||||||||
1,275,000 | W | 5.000%, due 12/15/34 | 1,315,840 | |||||||||||
931,000 | W | 5.500%, due 12/01/37 | 976,241 | |||||||||||
343,000 | W | 6.000%, due 12/15/33 | 363,205 | |||||||||||
100,000 | W | 6.500%, due 11/15/34 | 107,234 | |||||||||||
2,762,520 | ||||||||||||||
See Accompanying Notes to Financial Statements
169
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
Principal | ||||||||||||||
Amount | Value | |||||||||||||
Federal National Mortgage Association##: 1.8% | ||||||||||||||
$ | 775,000 | W | 5.000%, due 12/01/17-12/12/37 | $ | 812,156 | |||||||||
342,773 | S | 5.000%, due 07/01/37 | 356,798 | |||||||||||
1,032,000 | W | 5.500%, due 12/01/37 | 1,082,149 | |||||||||||
329,251 | S | 5.500%, due 06/01/37 | 347,159 | |||||||||||
2,103,000 | W | 6.000%, due 11/15/34 | 2,234,109 | |||||||||||
375,000 | W | 6.500%, due 11/13/36 | 402,539 | |||||||||||
5,234,910 | ||||||||||||||
Government National Mortgage Association: 0.7% | ||||||||||||||
226,000 | W | 4.500%, due 12/15/39 | 228,331 | |||||||||||
515,000 | W | 4.500%, due 12/20/39 | 518,864 | |||||||||||
393,000 | W | 5.000%, due 04/15/38 | 406,571 | |||||||||||
359,991 | S | 5.500%, due 03/20/39 | 380,963 | |||||||||||
368,685 | S | 6.000%, due 10/15/38 | 392,199 | |||||||||||
1,926,928 | ||||||||||||||
Total U.S. Government Agency Obligations (Cost $9,829,136 ) | 9,924,358 | |||||||||||||
U.S. TREASURY OBLIGATIONS: 12.5% | ||||||||||||||
U.S. Treasury Notes: 12.5% | ||||||||||||||
2,906,000 | S | 1.000%, due 09/30/11 | 2,915,084 | |||||||||||
8,327,000 | S | 1.375%, due 10/15/12 | 8,321,146 | |||||||||||
16,691,000 | S | 2.375%, due 09/30/14 | 16,762,654 | |||||||||||
20,000 | 2.375%, due 10/31/14 | 20,052 | ||||||||||||
3,733,000 | 3.625%, due 08/15/19 | 3,805,913 | ||||||||||||
5,024,000 | S | 4.250%, due 05/15/39 | 5,037,349 | |||||||||||
Total U.S. Treasury Obligations (Cost $36,800,235 ) | 36,862,198 | |||||||||||||
ASSET-BACKED SECURITIES: 2.1% | ||||||||||||||
Automobile Asset-Backed Securities: 1.7% | ||||||||||||||
585,000 | #,S | Bank of America Auto Trust, 2.130%, due 09/15/13 | 591,811 | |||||||||||
348,000 | #,S | Bank of America Auto Trust, 2.670%, due 07/15/13 | 354,743 | |||||||||||
628,000 | CarMax Auto Owner Trust, 1.000%, due 04/15/14 | 627,925 | ||||||||||||
423,000 | CarMax Auto Owner Trust, 1.000%, due 12/15/14 | 422,959 | ||||||||||||
275,000 | S | Harley-Davidson Motorcycle Trust, 2.620%, due 03/15/14 | 280,134 | |||||||||||
882,000 | S | Harley-Davidson Motorcycle Trust, 3.190%, due 11/15/13 | 903,939 | |||||||||||
367,000 | S | Harley-Davidson Motorcycle Trust, 5.520%, due 11/15/13 | 387,758 | |||||||||||
206,000 | S | Honda Auto Receivables Owner Trust, 2.310%, due 05/15/13 | 209,262 | |||||||||||
224,000 | S | Hyundai Auto Receivables Trust, 2.030%, due 08/15/13 | 225,870 | |||||||||||
286,000 | S | Mercedes-Benz Auto Receivables Trust, 1.670%, due 01/15/14 | 286,677 | |||||||||||
209,000 | S | Mercedes-Benz Auto Receivables Trust, 2.430%, due 03/15/16 | 209,363 | |||||||||||
99,000 | S | Nissan Auto Receivables Owner Trust, 4.460%, due 04/16/12 | 102,132 | |||||||||||
353,000 | S | USAA Auto Owner Trust, 5.070%, due 06/15/13 | 370,916 | |||||||||||
4,973,489 | ||||||||||||||
Home Equity Asset-Backed Securities: 0.4% | ||||||||||||||
1,522,441 | S | Ameriquest Mortgage Securities, Inc., 1.094%, due 08/25/33 | 1,298,449 | |||||||||||
1,298,449 | ||||||||||||||
Total Asset-Backed Securities (Cost $6,234,708 ) | 6,271,938 | |||||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS: 9.8% | ||||||||||||||
1,786,153 | S | Banc of America Funding Corp., 5.750%, due 10/25/35 | 1,533,699 | |||||||||||
970,000 | S | Citigroup Commercial Mortgage Trust, 5.700%, due 12/10/49 | 887,629 | |||||||||||
2,408,685 | #,S | Citigroup Mortgage Loan Trust, Inc., 5.448%, due 11/19/35 | 2,228,034 | |||||||||||
1,040,000 | S | Commercial Mortgage Pass-through Certificates, 5.816%, due 12/10/49 | 965,266 | |||||||||||
847,253 | S | Countrywide Alternative Loan Trust, 5.500%, due 10/25/33 | 850,637 | |||||||||||
2,029,939 | S | Countrywide Home Loan Mortgage Pass-through Trust, 3.684%, due 09/25/33 | 1,610,514 | |||||||||||
1,889,160 | S | Countrywide Home Loan Mortgage Pass-through Trust, 5.000%, due 04/25/35 | 1,597,242 | |||||||||||
1,961,673 | S | Countrywide Home Loan Mortgage Pass-through Trust, 5.500%, due 10/25/35 | 1,563,014 | |||||||||||
1,138,439 | S | GMAC Mortgage Corp. Loan Trust, 4.979%, due 06/25/34 | 1,005,702 | |||||||||||
1,546,172 | S | GMAC Mortgage Corp. Loan Trust, 5.448%, due 11/19/35 | 1,232,322 | |||||||||||
970,000 | S | Greenwich Capital Commercial Funding Corp., 5.444%, due 03/10/39 | 867,861 | |||||||||||
700,000 | S | Greenwich Capital Commercial Funding Corp., 5.736%, due 12/10/49 | 645,699 | |||||||||||
1,130,358 | S | JP Morgan Mortgage Trust, 4.976%, due 08/25/35 | 997,501 | |||||||||||
1,684,713 | S | JP Morgan Mortgage Trust, 5.292%, due 07/25/35 | 1,642,632 | |||||||||||
500,000 | S | JPMorgan Chase Commercial Mortgage Securities Corp., 5.179%, due 12/15/44 | 502,871 | |||||||||||
1,197,419 | S | JPMorgan Mortgage Trust, 4.775%, due 07/25/35 | 1,115,122 | |||||||||||
1,188,284 | S | JPMorgan Mortgage Trust, 5.292%, due 07/25/35 | 1,136,812 | |||||||||||
500,000 | S | LB-UBS Commercial Mortgage Trust, 5.156%, due 02/15/31 | 490,562 |
See Accompanying Notes to Financial Statements
170
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
Principal | ||||||||||||||
Amount | Value | |||||||||||||
$ | 500,000 | S | LB-UBS Commercial Mortgage Trust, 6.149%, due 04/15/41 | $ | 526,730 | |||||||||
1,868,373 | S | Lehman Mortgage Trust, 5.000%, due 12/25/35 | 1,405,757 | |||||||||||
988,618 | S | Lehman Mortgage Trust, 6.427%, due 04/25/36 | 864,560 | |||||||||||
1,502,582 | #,S | LVII Resecuritization Trust, 5.777%, due 11/27/37 | 1,502,582 | |||||||||||
760,000 | S | Morgan Stanley Capital I, 5.178%, due 09/15/42 | 785,571 | |||||||||||
930,000 | S | Wachovia Bank Commercial Mortgage Trust, 5.308%, due 11/15/48 | 901,476 | |||||||||||
2,034,295 | S | WaMu Mortgage Pass-Through Certificates, 5.230%, due 01/25/36 | 1,801,099 | |||||||||||
320,041 | S | Wells Fargo Mortgage-Backed Securities Trust, 4.250%, due 10/25/35 | 280,418 | |||||||||||
Total Collateralized Mortgage Obligations (Cost $28,019,870 ) | 28,941,312 | |||||||||||||
OTHER BONDS: 33.3% | ||||||||||||||
Foreign Government Bonds: 33.3% | ||||||||||||||
BRL 78,060,000 | S | Brazil Notas do Tesouro Nacional Series F, 10.000%, due 01/01/12 | 44,485,231 | |||||||||||
EUR 2,530,000 | S | Bundesobligation, 4.000%, due 10/11/13 | 3,980,456 | |||||||||||
EUR 5,000,000 | S | Bundesrepublik Deutschland, 3.750%, due 01/04/19 | 7,676,576 | |||||||||||
EUR 3,340,000 | S | Bundesrepublik Deutschland, 4.250%, due 01/04/14 | 5,300,504 | |||||||||||
EUR 4,400,000 | S | Bundesrepublik Deutschland, 4.250%, due 07/04/39 | 6,764,290 | |||||||||||
CAD 2,200,000 | S | Canadian Government International Bond, 4.250%, due 06/01/18 | 2,180,888 | |||||||||||
EUR 930,000 | S | France Government International Bond, 3.250%, due 04/25/16 | 1,395,085 | |||||||||||
EUR 915,000 | S | Italy Buoni Poliennali Del Tesoro, 3.750%, due 08/01/16 | 1,391,893 | |||||||||||
EUR 3,000,000 | Italy Buoni Poliennali Del Tesoro, 5.500%, due 11/01/10 | 4,614,418 | ||||||||||||
JPY 500,000,000 | S | Japan Government Ten Year Bond, 1.400%, due 12/20/11 | 5,684,147 | |||||||||||
JPY 110,000,000 | S | Japan Government Thirty Year Bond, 2.300%, due 03/20/39 | 1,231,789 | |||||||||||
JPY 370,000,000 | S | Japan Government Thirty Year Bond, 2.400%, due 09/20/38 | 4,231,441 | |||||||||||
JPY 800,000,000 | S | Japan Government Two Year Bond, 0.400%, due 03/15/11 | 8,908,382 | |||||||||||
UYU 6,067,000 | S | Uruguay Government International Bond, 4.250%, due 04/05/27 | 287,611 | |||||||||||
Total Other Bonds (Cost $86,593,204 ) | 98,132,711 | |||||||||||||
Notional | ||||||||||||||
Amount | Value | |||||||||||||
POSITIONS IN PURCHASED OPTIONS: 0.0% | ||||||||||||||
Foreign Currency Options: 0.0% | ||||||||||||||
$ | 7,164,109 | Call Option OTC — Deutsche Bank AG | ||||||||||||
CHF vs. USD Spot | ||||||||||||||
Strike @ 1.056-Exp 01/19/10 | $ | 21,599 | ||||||||||||
6,478,000 | Call Option OTC — Citibank N.A. | |||||||||||||
USD vs JPY | ||||||||||||||
Strike @ 95.250-Exp 12/21/09 | 20,224 | |||||||||||||
6,500,000 | Call Option OTC — Deutsche Bank AG | |||||||||||||
USD vs JPY Spot | ||||||||||||||
Strike @ 94.050-Exp 12/29/09 | 39,138 | |||||||||||||
Total Positions in Purchased Options (Cost $191,984 ) | 80,961 | |||||||||||||
Total Long-Term Investments (Cost $267,707,712 ) | 288,889,717 | |||||||||||||
SHORT-TERM INVESTMENTS: 1.1% | ||||||||||||||
Commercial Paper: 0.3% | ||||||||||||||
1,000,000 | S | Time Warner Cable, Inc., 0.300%, due 11/09/09 | 999,925 | |||||||||||
Total Commercial Paper (Cost $999,925 ) | 999,925 | |||||||||||||
Shares | Value | |||||||||||||
Affiliated Mutual Fund: 0.8% | ||||||||||||||
2,295,000 | S | ING Institutional Prime Money Market Fund — Class I | $ | 2,295,000 | ||||||||||
Total Mutual Fund (Cost $2,295,000 ) | 2,295,000 | |||||||||||||
Total Short-Term Investments (Cost $3,294,925 ) | 3,294,925 | |||||||||||||
Total Investments in Securities | ||||||||||||||
(Cost $271,002,637)* | 99.0 | % | $ | 292,184,642 | ||||||||||
Other Assets and Liabilities - Net | 1.0 | 2,816,802 | ||||||||||||
Net Assets | 100.0 | % | $ | 295,001,444 | ||||||||||
See Accompanying Notes to Financial Statements
171
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
& | 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. | |
## | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship and the U.S. Treasury guaranteed the debt issued by those organizations. | |
W | Settlement is on a when-issued or delayed-delivery basis. | |
S | All or a portion of this security is segregated to cover collateral requirements for applicable futures, options, swaps, foreign forward currency contracts and/or when-issued or delayed-delivery securities. | |
Structured product | ||
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
EUR | EU Euro | |
JPY | Japanese Yen | |
UYU | Uruguayan Peso Uruguayo | |
* | Cost for federal income tax purposes is $271,270,659. | |
Net unrealized appreciation consists of: |
Gross Unrealized Appreciation | $ | 22,023,410 | ||||||
Gross Unrealized Depreciation | (1,109,427 | ) | ||||||
Net Unrealized Appreciation | $ | 20,913,983 | ||||||
Fair Value Measurements
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
Investments | Inputs | Inputs | Fair Value at | |||||||||||||
(Level 1) | (Level 2)# | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Corporate Bonds/Notes | $ | — | $ | 103,524,092 | $ | 5,152,147 | $ | 108,676,239 | ||||||||
U.S. Government Agency Obligations | — | 9,924,358 | — | 9,924,358 | ||||||||||||
U.S. Treasury Obligations | — | 36,862,198 | — | 36,862,198 | ||||||||||||
Asset-Backed Securities | — | 6,271,938 | — | 6,271,938 | ||||||||||||
Collateralized Mortgage Obligations | — | 25,210,696 | 3,730,616 | 28,941,312 | ||||||||||||
Other Bonds | — | 98,132,711 | — | 98,132,711 | ||||||||||||
Positions In Purchased Options | — | 80,961 | — | 80,961 | ||||||||||||
Short-Term Investments | 2,295,000 | 999,925 | — | 3,294,925 | ||||||||||||
Total Investments, at value | $ | 2,295,000 | $ | 281,006,879 | $ | 8,882,763 | $ | 292,184,642 | ||||||||
Other Financial Instruments+: | ||||||||||||||||
Forward foreign currency contracts | — | 1,178,531 | — | 1,178,531 | ||||||||||||
Futures | 136,507 | — | — | 136,507 | ||||||||||||
Swaps, net of upfront payments | — | 563,940 | — | 563,940 | ||||||||||||
Total Assets | $ | 2,431,507 | $ | 282,749,350 | $ | 8,882,763 | $ | 294,063,620 | ||||||||
Liabilities Table | ||||||||||||||||
Other Financial Instruments+: | ||||||||||||||||
Forward foreign currency contracts | $ | — | $ | (1,485,210 | ) | $ | — | $ | (1,485,210 | ) | ||||||
Futures | (414,368 | ) | — | — | (414,368 | ) | ||||||||||
Swaps, net of upfront payments | — | (212,061 | ) | — | (212,061 | ) | ||||||||||
Written options | — | (221,277 | ) | — | (221,277 | ) | ||||||||||
Total Liabilities | $ | (414,368 | ) | $ | (1,918,548 | ) | $ | — | $ | (2,332,916 | ) | |||||
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund’s assets and liabilities during the period ended October 31, 2009:
Change In | ||||||||||||||||||||||||||||||||||||||||||||
Beginning | Accrued | Total | Unrealized | Transfers | Transfers | Ending | ||||||||||||||||||||||||||||||||||||||
Balance at | Discounts/ | Realized | Appreciation/ | Into | Out of | Balance at | ||||||||||||||||||||||||||||||||||||||
10/31/2008 | Purchases | Issuances | Settlements | Sales | (Premiums) | Gain/(Loss) | (Depreciation) | Level 3 | Level 3 | 10/31/2009 | ||||||||||||||||||||||||||||||||||
Asset Table | ||||||||||||||||||||||||||||||||||||||||||||
Investments, at value Corporate Bonds/Notes | $ | 16,295,798 | $ | 5,147,000 | $ | — | $ | — | $ | (15,223,266 | ) | $ | — | $ | (3,330,163 | ) | $ | 2,262,778 | $ | — | $ | — | $ | 5,152,147 | ||||||||||||||||||||
Collateralized Mortgage Obligations | 1,491,664 | 1,502,582 | — | — | (1,407,765 | ) | (5,065 | ) | (251,058 | ) | 172,224 | 2,228,034 | — | 3,730,616 | ||||||||||||||||||||||||||||||
Total Investments, at value | $ | 17,787,462 | $ | 6,649,582 | $ | — | $ | (16,631,031 | ) | $ | (5,065 | ) | $ | (3,581,221 | ) | $ | 2,435,002 | $ | 2,228,034 | $ | — | $ | 8,882,763 | |||||||||||||||||||||
Other Financial Instruments+: | ||||||||||||||||||||||||||||||||||||||||||||
Swaps, net of upfront payments | $ | 176,818 | $ | — | $ | — | $ | — | $ | (212,796 | ) | $ | — | $ | 212,796 | $ | (176,818 | ) | $ | — | $ | — | $ | — | ||||||||||||||||||||
Total Assets | $ | 17,964,280 | $ | 6,649,582 | $ | — | $ | — | $ | (16,843,827 | ) | $ | (5,065 | ) | $ | (3,368,425 | ) | $ | 2,258,184 | $ | 2,228,034 | $ | — | $ | 8,882,763 | |||||||||||||||||||
As of October 31, 2009, total change in unrealized gain (loss) on Level 3 securities still held at year end and included in the change in net assets was $32,584.
See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information.
+ | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, futures, swaps, and written options. |
# | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as level 2 Investments. |
Forward foreign currency contracts and futures are reported at their unrealized gain/loss at measurement date which represents the amount due to/from the Fund. Swaps and written options are reported at their market value at measurement date.
Transfers into Level 3 represents either the beginning balance (for transfer in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period.
See Accompanying Notes to Financial Statements
172
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
At October 31, 2009 the following forward foreign currency contracts were outstanding for the ING Global Bond Fund:
In | Unrealized | |||||||||||||||||||
Settlement | Exchange | Appreciation | ||||||||||||||||||
Currency | Buy/Sell | Date | For USD | Value | (Depreciation) | |||||||||||||||
Australian Dollar AUD 13,652,178 | BUY | 11/17/09 | 12,329,965 | 12,269,523 | $ | (60,442 | ) | |||||||||||||
Australian Dollar AUD 778,988 | BUY | 11/17/09 | 710,000 | 700,094 | (9,906 | ) | ||||||||||||||
Australian Dollar AUD 4,338,704 | BUY | 11/17/09 | 3,991,000 | 3,899,292 | (91,708 | ) | ||||||||||||||
Australian Dollar AUD 1,019,552 | BUY | 11/17/09 | 932,000 | 916,295 | (15,705 | ) | ||||||||||||||
Australian Dollar AUD 2,739,609 | BUY | 11/17/09 | 2,509,000 | 2,462,149 | (46,851 | ) | ||||||||||||||
Canadian Dollar CAD 612,783 | BUY | 11/17/09 | 592,939 | 566,323 | (26,616 | ) | ||||||||||||||
Canadian Dollar CAD 1,268,505 | BUY | 11/17/09 | 1,226,000 | 1,172,329 | (53,671 | ) | ||||||||||||||
Canadian Dollar CAD 2,316,640 | BUY | 11/17/09 | 2,258,000 | 2,140,996 | (117,004 | ) | ||||||||||||||
Canadian Dollar CAD 937,188 | BUY | 11/17/09 | 903,000 | 866,131 | (36,869 | ) | ||||||||||||||
Canadian Dollar CAD 814,474 | BUY | 11/17/09 | 784,000 | 752,722 | (31,278 | ) | ||||||||||||||
Chilean Peso CLP 2,400,000,000 | BUY | 12/4/09 | 4,519,774 | 4,534,150 | 14,376 | |||||||||||||||
Danish Krone DKK 6,953,272 | BUY | 12/4/09 | 1,375,535 | 1,373,995 | (1,540 | ) | ||||||||||||||
EU Euro EUR 28,472,987 | BUY | 11/17/09 | 42,106,252 | 41,900,486 | (205,766 | ) | ||||||||||||||
EU Euro EUR 2,095,233 | BUY | 11/17/09 | 3,097,000 | 3,083,319 | (13,681 | ) | ||||||||||||||
EU Euro EUR 2,565,433 | BUY | 11/17/09 | 3,848,000 | 3,775,258 | (72,742 | ) | ||||||||||||||
EU Euro EUR 1,327,382 | BUY | 11/17/09 | 1,995,000 | 1,953,358 | (41,642 | ) | ||||||||||||||
EU Euro EUR 774,848 | BUY | 11/17/09 | 1,140,000 | 1,140,256 | 256 | |||||||||||||||
British Pound | ||||||||||||||||||||
GBP 9,877,591 | BUY | 12/4/09 | 16,172,195 | 16,208,095 | 35,900 | |||||||||||||||
British Pound GBP 913,155 | BUY | 12/4/09 | 1,496,000 | 1,498,392 | 2,392 | |||||||||||||||
Indonesian Rupiah IDR 24,922,800,000 | BUY | 12/4/09 | 2,592,614 | 2,592,719 | 105 | |||||||||||||||
Indian Rupee INR 248,712,000 | BUY | 12/4/09 | 5,273,791 | 5,283,149 | 9,358 | |||||||||||||||
Japanese Yen JPY 612,783 | BUY | 11/16/09 | 6,828 | 6,808 | (20 | ) | ||||||||||||||
Japanese Yen JPY 111,839,714 | BUY | 11/17/09 | 1,246,000 | 1,242,565 | (3,435 | ) | ||||||||||||||
Japanese Yen JPY 2,969,428,675 | BUY | 11/17/09 | 33,089,464 | 32,991,030 | (98,434 | ) | ||||||||||||||
Japanese Yen JPY 54,972,334 | BUY | 11/17/09 | 612,783 | 610,755 | (2,028 | ) | ||||||||||||||
Japanese Yen JPY 55,058,185 | BUY | 11/17/09 | 612,783 | 611,709 | (1,074 | ) | ||||||||||||||
Japanese Yen JPY 98,176,639 | BUY | 11/17/09 | 1,069,000 | 1,090,765 | 21,765 | |||||||||||||||
South Korean Won KRW 8,286,840,000 | BUY | 12/4/09 | 6,952,047 | 7,006,598 | 54,551 | |||||||||||||||
Mexican Peso MXN 7,795,670 | BUY | 11/17/09 | 586,736 | 589,107 | 2,371 | |||||||||||||||
Norwegian Krone NOK 16,583,706 | BUY | 12/4/09 | 2,906,596 | 2,892,533 | (14,063 | ) | ||||||||||||||
New Zealand Dollar NZD 865,600 | BUY | 11/17/09 | 633,890 | 620,371 | (13,519 | ) | ||||||||||||||
New Zealand Dollar NZD 4,874,626 | BUY | 11/17/09 | 3,613,000 | 3,493,618 | (119,382 | ) | ||||||||||||||
New Zealand Dollar NZD 1,922,004 | BUY | 11/17/09 | 1,419,000 | 1,377,490 | (41,510 | ) | ||||||||||||||
Philippine Peso PHP 248,040,000 | BUY | 12/4/09 | 5,231,808 | 5,192,280 | (39,528 | ) | ||||||||||||||
Swedish Krona SEK 17,177,939 | BUY | 12/4/09 | 2,437,030 | 2,422,456 | (14,574 | ) | ||||||||||||||
Taiwan New Dollar TWD 25,000,000 | BUY | 12/4/09 | 770,986 | 771,594 | 608 | |||||||||||||||
$ | (1,031,306 | ) | ||||||||||||||||||
Australian Dollar AUD 3,426,184 | SELL | 11/17/09 | 3,097,000 | 3,079,190 | $ | 17,810 | ||||||||||||||
Australian Dollar AUD 500,566 | SELL | 11/17/09 | 452,000 | 449,870 | 2,130 | |||||||||||||||
Australian Dollar AUD 4,320,283 | SELL | 11/17/09 | 3,991,000 | 3,882,737 | 108,263 | |||||||||||||||
Australian Dollar AUD 4,166,757 | SELL | 11/17/09 | 3,848,000 | 3,744,759 | 103,241 | |||||||||||||||
Brazilian Real BRL 63,307,837 | SELL | 12/4/09 | 36,206,941 | 35,690,963 | 515,978 | |||||||||||||||
Canadian Dollar CAD 820,060 | SELL | 11/17/09 | 784,000 | 757,884 | 26,116 | |||||||||||||||
Canadian Dollar CAD 374,117 | SELL | 11/17/09 | 356,000 | 345,752 | 10,248 | |||||||||||||||
Canadian Dollar CAD 1,077,935 | SELL | 11/17/09 | 998,000 | 996,207 | 1,793 | |||||||||||||||
EU Euro EUR 735,260 | SELL | 11/17/09 | 1,097,000 | 1,081,999 | 15,001 | |||||||||||||||
EU Euro EUR 779,342 | SELL | 11/17/09 | 1,161,000 | 1,146,870 | 14,130 | |||||||||||||||
EU Euro EUR 1,199,794 | SELL | 11/17/09 | 1,782,000 | 1,765,602 | 16,398 | |||||||||||||||
EU Euro EUR 1,065,439 | SELL | 11/17/09 | 1,577,000 | 1,567,887 | 9,113 | |||||||||||||||
EU Euro EUR 1,584,320 | SELL | 11/17/09 | 2,352,000 | 2,331,465 | 20,535 | |||||||||||||||
British Pound GBP 1,033,554 | SELL | 12/4/09 | 1,710,000 | 1,695,955 | 14,045 | |||||||||||||||
Japanese Yen JPY 54,998,132 | SELL | 11/16/09 | 612,783 | 611,039 | 1,744 | |||||||||||||||
Japanese Yen JPY 612,783 | SELL | 11/17/09 | 6,832 | 6,808 | 24 | |||||||||||||||
Japanese Yen JPY 55,052,976 | SELL | 11/17/09 | 612,783 | 611,651 | 1,132 | |||||||||||||||
Japanese Yen JPY 283,955,475 | SELL | 11/17/09 | 3,161,000 | 3,154,810 | 6,190 | |||||||||||||||
Japanese Yen JPY 339,266,559 | SELL | 11/17/09 | 3,742,000 | 3,769,329 | (27,329 | ) | ||||||||||||||
Japanese Yen JPY 660,407,194 | SELL | 11/17/09 | 7,168,000 | 7,337,274 | (169,274 | ) | ||||||||||||||
Japanese Yen JPY 85,522,836 | SELL | 11/17/09 | 932,000 | 950,178 | (18,178 | ) | ||||||||||||||
Japanese Yen JPY 652,051,542 | SELL | 11/17/09 | 7,147,000 | 7,244,441 | (97,441 | ) | ||||||||||||||
New Zealand Dollar NZD 2,824,530 | SELL | 11/17/09 | 2,064,000 | 2,024,325 | 39,675 | |||||||||||||||
New Zealand Dollar NZD 2,732,099 | SELL | 11/17/09 | 2,000,000 | 1,958,080 | 41,920 | |||||||||||||||
New Zealand Dollar NZD 1,789,656 | SELL | 11/17/09 | 1,354,000 | 1,282,637 | 71,363 | |||||||||||||||
$ | 724,627 | |||||||||||||||||||
See Accompanying Notes to Financial Statements
173
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
ING Global Bond Fund Open Futures Contracts on October 31, 2009:
Unrealized | ||||||||||||
Number | Expiration | Appreciation/ | ||||||||||
Contract Description | of Contracts | Date | (Depreciation) | |||||||||
Long Contracts | ||||||||||||
Australia 3-Year Bond | 42 | 12/15/09 | $ | (33,999 | ) | |||||||
Canada 10-Year Bond | 12 | 12/18/09 | 2,579 | |||||||||
Euro-Bobl 5-Year | 74 | 12/08/09 | 39,298 | |||||||||
Euro-Bund | 68 | 12/08/09 | 42,780 | |||||||||
Euro-Schatz | 85 | 12/08/09 | 23,565 | |||||||||
Japan 10-Year Bond (TSE) | 8 | 12/10/09 | (61,345 | ) | ||||||||
Long Gilt | 100 | 12/29/09 | 24,218 | |||||||||
U.S. Treasury 2-Year Note | 2 | 12/31/09 | 433 | |||||||||
U.S. Treasury 5-Year Note | 9 | 12/31/09 | 3,634 | |||||||||
$ | 41,163 | |||||||||||
Short Contracts | ||||||||||||
U.S. Treasury 10-Year Note | 260 | 12/21/09 | $ | (233,792 | ) | |||||||
U.S. Treasury Long Bond | 218 | 12/21/09 | (85,232 | ) | ||||||||
$ | (319,024 | ) | ||||||||||
ING Global Bond Fund Credit Default Swap Agreements Outstanding on October 31, 2009:
Credit Default Swaps on Corporate and Sovereign Issues — Buy Protection(1)
(Pay)/ | Upfront | |||||||||||||||||||||||||||||
Reference | Receive | Premium | Unrealized | |||||||||||||||||||||||||||
Entity/ | Buy/Sell | Fixed | Termination | Notional | Market | Paid/ | Appreciation/ | |||||||||||||||||||||||
Counterparty | Obligation | Protection | Rate (%) | Date | Amount(3) | Value(4) | (Received) | (Depreciation) | ||||||||||||||||||||||
The Royal Bank of | Japan Government | |||||||||||||||||||||||||||||
Scotland PLC | 2.000%, 03/21/22 | Buy | (0.930 | ) | 06/20/14 | 9,000,000 | $ | (146,019 | ) | $ | — | $ | (146,019 | ) | ||||||||||||||||
$ | (146,019 | ) | $ | — | $ | (146,019 | ) | |||||||||||||||||||||||
Credit Default Swaps on Credit Indices — Sell Protection(2)
(Pay)/ | Upfront | |||||||||||||||||||||||||||||||
Reference | Receive | Premium | Unrealized | |||||||||||||||||||||||||||||
Entity/ | Buy/Sell | Fixed | Termination | Notional | Market | Paid/ | Appreciation/ | |||||||||||||||||||||||||
Counterparty | Obligation | Protection | Rate (%) | Date | Amount(3) | Value(4) | (Received) | (Depreciation) | ||||||||||||||||||||||||
Barclays Bank PLC | CDX.EM.11 Index | Sell | 5.000 | 06/20/14 | 2,800,000 | $ | 256,202 | $ | 207,014 | $ | 49,188 | |||||||||||||||||||||
Barclays Bank PLC | CDX.EM.11 Index | Sell | 5.000 | 06/20/14 | 2,333,000 | 213,471 | 173,351 | 40,120 | ||||||||||||||||||||||||
$ | 469,673 | $ | 380,365 | $ | 89,308 | |||||||||||||||||||||||||||
(1) | If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either 1.) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or 2.) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | If the Fund is a seller of protection, and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will generally either 1.) Pay to the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations, or underlying securities comprising a referenced index or 2.) Pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising a referenced index. |
(3) | The maximum amount of future payments (undiscounted) that a Fund as seller of protection could be required to make or receive as a buyer of credit protection under a credit default swap agreement would be an amount equal to the notional amount of the agreement. |
(4) | The market values for credit default swap agreements serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. Increasing market values, in absolute terms, when compared to the notional amount of the agreement, represent a deterioration of the referenced obligation’s credit soundness and a greater likelihood or risk of default or other credit event occurring. |
See Accompanying Notes to Financial Statements
174
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Global Bond Fund
as of October 31, 2009 (continued)
ING Global Bond Fund Interest Rate Swap Agreements Outstanding on October 31, 2009:
Notional | Unrealized | |||||||||||||||
Termination | Principal | Appreciation/ | ||||||||||||||
Date | Amount | (Depreciation) | ||||||||||||||
Receive a fixed rate equal to 6.750% and pay a floating rate based on 28-day MXN-TIIE-BANXICO Counterparty: Citibank N.A., New York | 08/08/12 | MXN | 171,650,000 | $ | 4,215 | |||||||||||
Receive a fixed rate equal to 4.710% and pay a floating rate based on 3-month NZD-BBR-FRA Counterparty: UBS AG | 06/30/11 | NZD | 71,300,000 | (66,042 | ) | |||||||||||
Receive a fixed rate equal to 5.830% and pay a floating rate based on 3-month NZD-BBR-FRA Counterparty: UBS AG | 10/29/11 | NZD | 71,000,000 | 90,052 | ||||||||||||
$ | 28,225 | |||||||||||||||
ING Global Bond Fund Written Options Open on October 31, 2009:
Foreign Currency Options
Exercise | Expiration | Notional | Premium | |||||||||||||||||||||||||
Description | Counter Party | Price | Date | Amount | Received | Value | ||||||||||||||||||||||
Put Option OTC CHF vs. USD Spot | Deutsche Bank AG | 0.9695 | 01/19/10 | CHF | 7,164,109 | $ | 69,236 | $ | (135,749 | ) | ||||||||||||||||||
Put Option OTC USD vs. JPY | Citibank | 86.3500 | 12/21/09 | USD | 6,478,000 | 74,395 | (44,733 | ) | ||||||||||||||||||||
Put Option OTC USD vs. JPY Spot | Deutsche Bank AG | 85.4500 | 12/29/09 | USD | 6,500,000 | 75,335 | (40,795 | ) | ||||||||||||||||||||
$ | 218,966 | $ | (221,277 | ) | ||||||||||||||||||||||||
Total Premiums Received: | $ | 218,966 | ||||||||||||||||||||||||||
Total Liabilities for Call Options Written: | $ | 221,277 |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2009 was as follows:
Derivatives not accounted for | ||||||
as hedging instruments | Location on Statement | |||||
under FASB ASC 815 | of Assets and Liabilities | Fair Value | ||||
Asset Derivatives | ||||||
Foreign exchange contracts | Investments in securities at value* | $ | 80,961 | |||
Interest rate contracts | Futures variation margin receivable** | 145,752 | ||||
Foreign exchange contracts | Unrealized appreciation on forward foreign currency contracts | 1,178,531 | ||||
Credit contracts | Unrealized appreciation on swap agreements, net of upfront payments | 469,673 | ||||
Interest rate contracts | Unrealized appreciation on swap agreements, net of upfront payments | 94,267 | ||||
Total Asset Derivatives | $ | 1,969,184 | ||||
Liability Derivatives | ||||||
Interest rate contracts | Payable for futures variation margin** | $ | 631,751 | |||
Foreign exchange contracts | Unrealized depreciation on forward foreign currency contracts | 1,485,210 | ||||
Credit contracts | Unrealized depreciation on swap agreements, net of upfront payments | 146,019 | ||||
Interest rate contracts | Unrealized depreciation on swap agreements, net of upfront payments | 66,042 | ||||
Foreign exchange contracts | Written options | 221,277 | ||||
Total Liability Derivatives | $ | 2,550,299 | ||||
* | Includes purchased options |
** | The Fair Values of Derivative Instruments may include cumulative appreciation/depreciation of futures contracts as reported in the table following the Portfolio of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
The effect of derivative instruments on the Fund’s Statement of Operations for the year ended October 31, 2009 was as follows:
Derivatives not accounted for | Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||
as hedging instruments | Forward Foreign | Written | ||||||||||||||||||||||
under FASB ASC 815 | Investments* | Currency Contracts | Futures | Swaps | options | Total | ||||||||||||||||||
Foreign exchange contracts | $ | (67,757 | ) | $ | 5,341,314 | $ | — | $ | — | $ | 71,942 | $ | 5,345,499 | |||||||||||
Interest rate contracts | — | — | 1,337,965 | 2,305,086 | — | 3,643,051 | ||||||||||||||||||
Credit contracts | — | — | — | (302,044 | ) | — | (302,044 | ) | ||||||||||||||||
Total | $ | (67,757 | ) | $ | 5,341,314 | $ | 1,337,965 | $ | 2,003,042 | $ | 71,942 | $ | 8,686,506 | |||||||||||
Change in Unrealized Appreciation or (Depreciation) | ||||||||||||||||||||||||
Derivatives not accounted for as | on Derivatives Recognized in Income | |||||||||||||||||||||||
hedging instruments | Forward Foreign | Written | ||||||||||||||||||||||
under FASB ASC 815 | Investments* | Currency Contracts | Futures | Swaps | options | Total | ||||||||||||||||||
Foreign exchange contracts | $ | (111,023 | ) | $ | (711,457 | ) | $ | — | $ | — | $ | (2,311 | ) | $ | (824,791 | ) | ||||||||
Interest rate contracts | — | — | (1,432,147 | ) | (150,927 | ) | — | (1,583,074 | ) | |||||||||||||||
Credit contracts | — | — | — | 43,846 | — | 43,846 | ||||||||||||||||||
Total | $ | (111,023 | ) | $ | (711,457 | ) | $ | (1,432,147 | ) | $ | (107,081 | ) | $ | (2,311 | ) | $ | (2,364,019 | ) | ||||||
* | Amounts recognized for purchased options are included in net realized gain (loss) on investments and net change in unrealized appreciation or depreciation on investments. |
See Accompanying Notes to Financial Statements
175
Table of Contents
PORTFOLIO OF INVESTMENTS
ING Diversified International Fund
as of October 31, 2009
Shares | Value | |||||||||||||
AFFILIATED INVESTMENT COMPANIES: 100.0% | ||||||||||||||
781,568 | ING Emerging Countries Fund — Class I | $ | 18,491,889 | |||||||||||
4,363,160 | ING Foreign Fund — Class I | 57,070,127 | ||||||||||||
2,362,419 | ING Index Plus International Equity Fund — Class I | 18,450,490 | ||||||||||||
5,762,275 | ING International Capital Appreciation Fund — Class I | 51,860,476 | ||||||||||||
1,367,658 | ING International Real Estate Fund — Class I | 11,611,412 | ||||||||||||
851,031 | ING International SmallCap Multi-Manager Fund — Class I | 26,833,018 | ||||||||||||
2,321,860 | ING International Value Choice Fund — Class I | 22,452,384 | ||||||||||||
2,022,414 | ING International Value Fund — Class I | 22,853,281 | ||||||||||||
Total Investments in Affiliated Investment Companies | ||||||||||||||
(Cost $254,090,651 )* | 100.0 | % | 229,623,077 | |||||||||||
Other Assets and Liabilities — Net | (0.0 | ) | (44,352 | ) | ||||||||||
Net Assets | 100.0 | % | $ | 229,578,725 | ||||||||||
* | Cost for federal income tax purposes is $284,810,982. | |
Net unrealized depreciation consists of: |
Gross Unrealized Appreciation | $ | 1,438,968 | ||
Gross Unrealized Depreciation | $ | (56,626,873 | ) | |
Net Unrealized Depreciation | $ | (55,187,905 | ) | |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2009 in valuing the Fund’s assets and liabilities:
Quoted Prices | Significant | |||||||||||||||
in Active Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | Fair Value | |||||||||||||
Investments | Inputs | Inputs | at | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | 10/31/2009 | |||||||||||||
Asset Table | ||||||||||||||||
Investments, at value | ||||||||||||||||
Affiliated Investment Companies | $ | 229,623,077 | $ | — | $ | — | $ | 229,623,077 | ||||||||
Total Investments, at value | $ | 229,623,077 | $ | — | $ | — | $ | 229,623,077 | ||||||||
ˆ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
176
Table of Contents
Dividends paid during the year ended October 31, 2009 were as follows:
Fund Name | Type | Per Share Amount | ||||||
ING Global Equity Dividend Fund | ||||||||
Class A | NII | $ | 0.2224 | |||||
Class B | NII | $ | 0.1595 | |||||
Class C | NII | $ | 0.1598 | |||||
Class I | NII | $ | 0.2614 | |||||
Class O | NII | $ | 0.2210 | |||||
Class W | NII | $ | 0.2634 | |||||
All Classes | ROC | $ | 0.0157 | |||||
ING Global Natural Resources Fund | ||||||||
Class A | NII | $ | 0.0208 | |||||
Class I | NII | $ | 0.0592 | |||||
Class W | NII | $ | 0.0592 | |||||
All Classes | LTCG | $ | 0.4332 | |||||
ING Global Real Estate Fund | ||||||||
Class A | NII | $ | 0.2698 | |||||
Class B | NII | $ | 0.2229 | |||||
Class C | NII | $ | 0.2188 | |||||
Class I | NII | $ | 0.3049 | |||||
Class O | NII | $ | 0.2703 | |||||
Class W | NII | $ | 0.3069 | |||||
Class A | ROC | $ | 0.0942 | |||||
Class B | ROC | $ | 0.0746 | |||||
Class C | ROC | $ | 0.0725 | |||||
Class I | ROC | $ | 0.1063 | |||||
Class O | ROC | $ | 0.0847 | |||||
Class W | ROC | $ | 0.1084 | |||||
All Classes | LTCG | $ | 0.0139 | |||||
ING Asia-Pacific Real Estate Fund | ||||||||
Class A | NII | $ | 0.1109 | |||||
Class B | NII | $ | 0.0842 | |||||
Class C | NII | $ | 0.0762 | |||||
Class I | NII | $ | 0.1341 | |||||
ING Emerging Countries Fund | ||||||||
Class A | NII | $ | 0.4960 | |||||
Class B | NII | $ | 0.1694 | |||||
Class C | NII | $ | 0.2165 | |||||
Class I | NII | $ | 0.6293 | |||||
Class Q | NII | $ | 0.5041 | |||||
Class W | NII | $ | 0.6388 | |||||
ING European Real Estate Fund | ||||||||
Class A | NII | $ | 0.3062 | |||||
Class B | NII | $ | 0.2746 | |||||
Class C | NII | $ | 0.2658 | |||||
Class I | NII | $ | 0.3205 | |||||
ING Foreign Fund | ||||||||
Class A | NII | $ | 0.4548 | |||||
Class B | NII | $ | 0.2990 | |||||
Class C | NII | $ | 0.3204 | |||||
Class I | NII | $ | 0.5404 | |||||
Class Q | NII | $ | 0.1854 | |||||
Class W | NII | $ | 0.5428 | |||||
ING Greater China Fund | ||||||||
Class A | NII | $ | 0.2117 | |||||
Class B | NII | $ | 0.0606 | |||||
Class C | NII | $ | 0.0473 | |||||
Class I | NII | $ | 0.2787 | |||||
Class O | NII | $ | 0.2789 | |||||
All Classes | LTCG | $ | 0.6021 | |||||
ING Index Plus International Equity Fund | ||||||||
Class A | NII | $ | 0.2323 | |||||
Class B | NII | $ | 0.1216 | |||||
Class C | NII | $ | 0.1540 | |||||
Class I | NII | $ | 0.3160 | |||||
Class O | NII | $ | 0.2412 | |||||
ING International Capital Appreciation Fund | ||||||||
Class A | NII | $ | 0.1538 | |||||
Class B | NII | $ | 0.0371 | |||||
Class C | NII | $ | 0.0152 | |||||
Class I | NII | $ | 0.2289 | |||||
Class Q* | NII | $ | — | |||||
All Classes, except Class Q | ROC | $ | 0.0052 | |||||
ING International Real Estate Fund | ||||||||
Class A | NII | $ | 0.1664 | |||||
Class B | NII | $ | 0.1161 | |||||
Class C | NII | $ | 0.1131 | |||||
Class I | NII | $ | 0.1874 | |||||
Class W | NII | $ | 0.1877 | |||||
ING International SmallCap Multi-Manager Fund | ||||||||
Class A | NII | $ | 0.7076 | |||||
Class B | NII | $ | 0.1704 | |||||
Class C | NII | $ | 0.4153 | |||||
Class I | NII | $ | 0.9052 | |||||
Class O | NII | $ | 0.9028 | |||||
Class Q | NII | $ | 0.7551 | |||||
Class W | NII | $ | 0.9246 | |||||
ING International Value Fund | ||||||||
Class A | NII | $ | 0.3530 | |||||
Class B | NII | $ | 0.1701 | |||||
Class C | NII | $ | 0.2385 | |||||
Class I | NII | $ | 0.4191 | |||||
Class Q | NII | $ | 0.4221 | |||||
Class W* | NII | $ | — | |||||
All Classes, except Class W* | STCG | $ | 0.1604 | |||||
All Classes, except Class W* | LTCG | $ | 1.3466 | |||||
ING International Value Choice Fund | ||||||||
Class A | NII | $ | 0.0758 | |||||
Class B | NII | $ | 0.0022 | |||||
Class C | NII | $ | 0.0025 | |||||
Class I | NII | $ | 0.1182 | |||||
ING Russia Fund | ||||||||
Class A | LTCG | $ | 8.0810 | |||||
Class I* | LTCG | $ | — | |||||
ING Global Bond Fund | ||||||||
Class A | NII | $ | 0.1502 | |||||
Class B | NII | $ | 0.1184 | |||||
Class C | NII | $ | 0.1195 | |||||
Class I | NII | $ | 0.2442 | |||||
Class O | NII | $ | 0.2606 | |||||
Class W** | NII | $ | 0.3251 | |||||
All Classes, except Class W** | STCG | $ | 0.2430 | |||||
ING Diversified International Fund | ||||||||
Class A | NII | $ | 0.8605 | |||||
Class B | NII | $ | 0.7718 | |||||
Class C | NII | $ | 0.7703 | |||||
Class I | NII | $ | 0.8976 | |||||
Class O | NII | $ | 0.8936 | |||||
Class R | NII | $ | 0.8393 | |||||
Class W | NII | $ | 0.8976 |
NII — Net investment income
ROC — Return of capital
STCG — Short-term capital gain
LTCG — Long-term capital gain
* | Commenced operations after the dividends and distributions were declared. |
** | Commenced operations on June 1, 2009 after the short-term capital gain distribution was declared. |
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TAX INFORMATION (Unaudited) (continued)
Of the ordinary distributions made during the year ended October 31, 2009, the following percentages qualify for the dividends received deduction (DRD) available to corporate shareholders:
Global Equity Dividend | 69.93% | |
Global Natural Resources | 100.00% | |
International SmallCap Multi-Manager | 0.24% | |
International Value | 0.09% | |
International Value Choice | 7.31% | |
Diversified International | 0.14% |
For the year ended October 31, 2009, the following are percentages of ordinary income dividends paid by the Funds that are designated as qualifying dividend income (QDI) subject to reduced income tax rates for individuals:
Global Equity Dividend | 100.00% | |
Global Natural Resources | 100.00% | |
Asia-Pacific Real Estate | 21.17% | |
Emerging Countries | 100.00% | |
European Real Estate | 45.86% | |
Foreign | 100.00% | |
Greater China | 58.99% | |
Index Plus International Equity | 100.00% | |
International Capital Appreciation | 100.00% | |
International Real Estate | 18.85% | |
International SmallCap Multi-Manager | 100.00% | |
International Value | 100.00% | |
International Value Choice | 100.00% | |
Diversified International | 52.44% |
Pursuant to Internal Revenue Code Section 871(k)(1), the Funds designate the following percentages of net investment income distributions as interest-related dividends:
Global Equity Dividend | 0.01% | |
Asia-Pacific Real Estate | 0.69% | |
Emerging Countries | 7.23% | |
European Real Estate | 0.56% | |
Foreign | 2.21% | |
Greater China | 1.22% | |
Index Plus International Equity | 1.36% | |
International Capital Appreciation | 4.88% | |
International Real Estate | 0.45% | |
International SmallCap Multi-Manager | 1.95% | |
International Value | 1.12% | |
International Value Choice | 6.43% | |
Global Bond | 32.99% |
The following funds designate 100% of their short-term capital gain distributions as short-term capital gain dividends as defined in Internal Revenue Code Section 871(k)(2):
International Value
Global Bond
Pursuant to Section 853 of the Internal Revenue Code, the Funds designate the following amounts as foreign taxes paid for the year ended October 31, 2009. Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes.
Creditable | Portion of Ordinary Income | |||||||||||
Foreign Taxes | Per Share | Distribution Derived from | ||||||||||
Paid | Amount | Foreign Sourced Income* | ||||||||||
Global Equity Dividend | $ | 322,055 | $ | 0.0221 | 55.38% | |||||||
Asia-Pacific Real Estate | $ | 2,437 | $ | 0.0031 | 30.84% | |||||||
Emerging Countries | $ | 97,517 | $ | 0.0165 | 78.78% | |||||||
European Real Estate | $ | 11,020 | $ | 0.0115 | 34.00% | |||||||
Foreign | $ | 764,480 | $ | 0.0388 | 100.00% | |||||||
Greater China | $ | 44,060 | $ | 0.0133 | 62.15% | |||||||
Index Plus International Equity | $ | 293,392 | $ | 0.0206 | 100.00% | |||||||
International Capital Appreciation | $ | 103,052 | $ | 0.0085 | 100.00% | |||||||
International Real Estate | $ | 730,305 | $ | 0.0115 | 37.38% | |||||||
International SmallCap Multi-Manager | $ | 849,477 | $ | 0.0631 | 77.74% | |||||||
International Value | $ | 4,357,803 | $ | 0.0289 | 87.57% | |||||||
International Value Choice | $ | 97,128 | $ | 0.0191 | 92.35% | |||||||
Russia | $ | 382,080 | $ | 0.0302 | 98.52% |
* | None of the funds listed above derived any income from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code. |
Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. Shareholders are strongly advised to consult their own tax advisors regarding the appropriate treatment of foreign taxes paid.
Above figures may differ from those cited elsewhere in this report due to differences in the calculation of income and gains under U.S. generally accepted accounting principles (book) purposes and Internal Revenue Service (tax) purposes.
Shareholders are strongly advised to consult their own tax advisers with respect to the tax consequences of their investments in the Funds. In January, shareholders, excluding corporate shareholders, receive an IRS 1099-DIV regarding the federal tax status of the dividends and distributions they received in the calendar year.
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The business and affairs of the Registrants are managed under the direction of the Board. A Director/Trustee who is not an interested person of the Registrants, as defined in the 1940 Act, is an independent trustee (“Independent Trustee”). The Directors/Trustees and Officers of the registrants are listed below. The Statement of Additional Information includes additional information about directors/trustees of the Registrants and is available, without charge, upon request at (800) 992-0180.
Number of | ||||||||||
Funds in | Other | |||||||||
Complex(2) | Directorships/ | |||||||||
Position(s) | Term of Office | Overseen | Trusteeships | |||||||
Held With | and Length of | Principal Occupation(s) | by Director/ | Held by | ||||||
Name, Address and Age | Funds | Time Served(1) | During the Past 5 Years | Trustee | Director/Trustee | |||||
Colleen D. Baldwin 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 49 | Director/ Trustee | IMF November 2007 — Present IMT December 2007 — Present | Consultant, Glantuam Partners, LLC (January 2009 — Present); President, National Charity League/Canaan Parish Board (June 2008 — Present); and Consultant (January 2005 — Present). | 140 | None. | |||||
John V. Boyer(3) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 56 | Director/ Trustee | January 2005 — Present | President, Bechtler Arts Foundation (January 2008 — Present). Formerly, Consultant (July 2007 — February 2008); President and Chief Executive Officer, Franklin and Eleanor Roosevelt Institute (March 2006 — July 2007); and Executive Director, The Mark Twain House & Museum (September 1989 — March 2006). | 140 | None. | |||||
Patricia W. Chadwick 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:61 | Director/ Trustee | January 2006 — Present | Consultant and President, Ravengate Partners LLC (January 2000 — Present). | 140 | Wisconsin Energy Corporation (June 2006 — Present). | |||||
Peter S. Drotch 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:67 | Director/ Trustee | IMF November 2007 — Present IMT December 2007 — Present | Retired partner, PricewaterhouseCoopers, LLP. | 140 | First Marblehead Corporation (September 2003- Present). | |||||
J. Michael Earley 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:64 | Director/ Trustee | February 2002- Present | Retired. Formerly, President and Chief Executive Officer, Bankers Trust Company, N.A., Des Moines (June 1992 — December 2008). | 140 | Bankers Trust Company, N.A. Des Moines (June 1992 — Present) and Midamerica Financial Corporation (December 2002 — Present). | |||||
Patrick W. Kenny 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:66 | Director/ Trustee | January 2005 — Present | Retired. Formerly, President and Chief Executive Officer, International Insurance Society (June 2001 — June 2009). | 140 | Assured Guaranty Ltd. (April 2004 — Present) and Odyssey Re Holdings Corp (November 2006 — Present). | |||||
Sheryl K. Pressler 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:58 | Director/ Trustee | January 2006 — Present | Consultant (May 2001 — Present). | 140 | Stillwater Mining Company (May 2002 — Present). | |||||
Roger B. Vincent 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:64 | Chairman and Director/ Trustee | February 2002 — Present | President, Springwell Corporation (March 1989 — Present). | 140 | UGI Corporation (February 2006 — Present) and UGI Utilities, Inc. (February 2006 — Present). |
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DIRECTOR/TRUSTEE AND OFFICER INFORMATION (Unaudited) (continued)
Number of | ||||||||||
Funds in | Other | |||||||||
Complex(2) | Directorships/ | |||||||||
Position(s) | Term of Office | Overseen | Trusteeships | |||||||
Held With | and Length of | Principal Occupation(s) | by Director/ | Held by | ||||||
Name, Address and Age | Funds | Time Served(1) | During the Past 5 Years | Trustee | Director/Trustee | |||||
Directors who are “Interested Persons” | ||||||||||
Robert W. Crispin(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:62 | Director/ Trustee | IMF November 2007 — Present IMT December 2007 — Present | Retired. Chairman and Chief Executive Officer, ING Investment Management Co. (June 2001 — December 2007). | 140 | ING Canada Inc. (December 2004 — Present) and ING Bank, fsb (June 2001 — Present). | |||||
Shaun P. Mathews(4)(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age:54 | Director/ Trustee | IMF November 2007 — Present IMT December 2007 — Present | President and Chief Executive Officer, ING Investments, LLC (November 2006 — Present). Formerly, President, ING Mutual Funds and Investment Products (November 2004 — — November 2006). | 183 | ING Services Holding Company, Inc. (May 2000 — Present); Southland Life Insurance Company (June 2002 — Present); and ING Capital Corporation, LLC, ING Funds Distributor, LLC(6), ING Funds Services, LLC(7), ING Investments, LLC(8) and ING Pilgrim Funding, Inc. (December 2005 — Present). |
(1) | Directors/Trustees serve until their successors are duly elected and qualified. The tenure of each Director/Trustee is subject to the Board’s retirement policy, which states that each Independent Director/Trustee shall retire from service as a Director/Trustee at the conclusion of the first regularly scheduled meeting of the Board that is held after the Director/Trustee reaches the age of 72. A unanimous vote of the Board may extend the retirement date of a Director/Trustee for up to one year. An extension may be permitted if the retirement would trigger a requirement to hold a meeting of shareholders of the Fund under applicable law, whether for purposes of appointing a successor to the Director/Trustee or if otherwise necessary under applicable law, in which case the extension would apply until such time as the shareholder meeting can be held or is no longer needed. | |
(2) | For the purposes of this table (except for Mr. Mathews),“Fund Complex” means the following investment companies: ING Asia Pacific High Dividend Equity Income Fund, ING Equity Trust; ING Funds Trust; ING Global Equity Dividend and Premium Opportunity Fund; ING Global Advantage and Premium Opportunity Fund; ING International High Dividend Equity Income Fund; ING Investors Trust; ING Mayflower Trust; ING Mutual Funds; ING Prime Rate Trust; ING Risk Managed Natural Resources Fund; ING Senior Income Fund; ING Separate Portfolios Trust; ING Variable Insurance Trust; ING Variable Products Trust; and ING Partners, Inc. | |
(3) | Mr. Boyer held a seat on the Board of Directors of The Mark Twain House & Museum from September 1989 to November 2005. ING Groep N.V. makes non-material, charitable contributions to The Mark Twain House & Museum. | |
(4) | Messrs. Mathews and Crispin are deemed to be “interested persons” of the Fund as defined in the 1940 Act because of their relationship with ING Groep, N.V., the parent corporation of the Manager, ING Investment Manager. | |
(5) | For Mr. Mathews, the Fund Complex also includes the following investment companies: ING Series Fund, Inc.; ING Strategic Allocation Portfolios, Inc.; ING Variable Funds; ING Variable Portfolios, Inc.; ING Balanced Portfolio, Inc.; ING Intermediate Bond Portfolio; and ING Money Market Portfolio. | |
(6) | ING Funds Distributor, LLC is the successor in interest to ING Funds Distributor, Inc., which was previously known as ING Pilgrim Securities, Inc., and before that was known as Pilgrim Securities, Inc., and before that was known as Pilgrim America Securities, Inc. | |
(7) | ING Funds Services, LLC was previously named ING Pilgrim Group, LLC. ING Pilgrim Group, LLC is the successor in interest to ING Pilgrim Group, Inc., which was previously known as Pilgrim Group, Inc. and before that was known as Pilgrim America Group, Inc. | |
(8) | ING Investments, LLC was previously named ING Pilgrim Investments, LLC. ING Pilgrim Investments, LLC is the successor in interest to ING Pilgrim Investments, Inc., which was previously known as Pilgrim Investments, Inc. and before it was known as Pilgrim America Investments, Inc. |
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DIRECTOR/TRUSTEE AND OFFICER INFORMATION (Unaudited) (continued)
Term of Office | ||||||
Position(s) Held | and Length of | Principal Occupation(s) | ||||
Name, Address and Age | With Funds | Time Served(1) | During the Past 5 Years | |||
Shaun P. Mathews(2) 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 54 | President and Chief Executive Officer | November 2006 — Present | President and Chief Executive Officer, ING Investments, LLC(3) (November 2006 — Present). Formerly, President, ING Mutual Funds and Investment Products (November 2004 — November 2006). | |||
Michael J. Roland 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 51 | Executive Vice President | February 2002 — Present | Head of Mutual Fund Platform (February 2007 — Present) and Executive Vice President, ING Investments, LLC(3)and ING Funds Services, LLC(4) (December 2001 — Present). Formerly, Executive Vice President, Head of Product Management (January 2005 — January 2007); Chief Compliance Officer, ING Investments, LLC(3) and Directed Services LLC(5) (October 2004 — December 2005); and Chief Financial Officer and Treasurer, ING Investments, LLC(3) (December 2001 — March 2005). | |||
Stanley D. Vyner 230 Park Avenue New York, New York 10169 Age: 59 | Executive Vice President | ING Mutual Funds May 1999 — Present ING Mayflower Trust November 1999-Present | Executive Vice President, ING Investments, LLC(3) (July 2000 — Present) and Chief Investment Risk Officer, ING Investments, LLC(3) (January 2003 — Present). | |||
Joseph M. O’Donnell 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 54 | Executive Vice President and Chief Compliance Officer | Executive Vice President March 2006 — Present Chief Compliance Officer November 2004 — Present | Chief Compliance Officer of the ING Funds (November 2004 — Present) and Executive Vice President of the ING Funds (March 2006 — Present). Formerly, Chief Compliance Officer of ING Investments, LLC(3) (March 2006 — July 2008); Investment Advisor Chief Compliance Officer, Directed Services LLC(5) (March 2006 — July 2008) ING Life Insurance and Annuity Company (March 2006 — December 2006). | |||
Todd Modic 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 41 | Senior Vice President, Chief/Principal Financial Officer and Assistant Secretary | March 2005 — Present | Senior Vice President, ING Funds Services, LLC(4) (March 2005 — Present). Formerly, Vice President, ING Funds Services, LLC(4) (September 2002 — March 2005). | |||
Kimberly A. Anderson 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 45 | Senior Vice President | November 2003 — Present | Senior Vice President, ING Investments, LLC(3) (October 2003 — Present). | |||
Robert Terris 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 39 | Senior Vice President | May 2006 — Present | Senior Vice President, Head of Division Operations, ING Funds Services, LLC(4) (May 2006 — Present). Formerly, Vice President of Administration, ING Funds Services, LLC(4) (October 2001 — March 2006). | |||
Robyn L. Ichilov 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 42 | Vice President and Treasurer | ING Mutual Funds May 1999 — Present ING Mayflower Trust November 1999 — Present | Vice President and Treasurer, ING Funds Services, LLC(4) (November 1995 — Present) and ING Investments, LLC(3) (August 1997 — Present). |
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DIRECTOR/TRUSTEE AND OFFICER INFORMATION (Unaudited) (continued)
Term of Office | ||||||
Position(s) Held | and Length of | Principal Occupation(s) | ||||
Name, Address and Age | With Funds | Time Served(1) | During the Past 5 Years | |||
Lauren D. Bensinger 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 55 | Vice President | February 2003 — Present | Vice President and Chief Compliance Officer, ING Funds Distributor, LLC(6) (August 1995 — Present); Vice President, ING Investments, LLC(3) and ING Funds Services, LLC (4) (February 1996 — Present); and Director of Compliance, ING Investments, LLC(3) (October 2004 — Present). | |||
William Evans 10 State House Square Hartford, Connecticut 06103 Age: 37 | Vice President | September 2007 — Present | Vice President, Head of Mutual Fund Advisory Group (April 2007 — Present). Formerly, Vice President, U.S. Mutual Funds and Investment Products (May 2005 — April 2007) and Senior Fund Analyst, U.S. Mutual Funds and Investment Products (May 2002 — May 2005). | |||
Maria M. Anderson 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 51 | Vice President | September 2004 — Present | Vice President, ING Funds Services, LLC(3) (September 2004 — Present). | |||
Denise Lewis 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 46 | Vice President | January 2007 — Present | Vice President, ING Funds Services, LLC(4) (December 2006 — Present). Formerly, Senior Vice President, UMB Investment Services Group, LLC (November 2003 — December 2006). | |||
Kimberly K. Springer 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 52 | Vice President | March 2006 — Present | Vice President, ING Funds Services, LLC(4) (March 2006 — Present). Formerly, Assistant Vice President, ING Funds Services, LLC(4) (August 2004 — March 2006). | |||
Craig Wheeler 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 40 | Assistant Vice President | May 2008 — Present | Assistant Vice President — Director of Tax, ING Funds Services, LLC(4)(March 2008 — Present). Formerly, Tax Manager, ING Funds Services, LLC(4) (March 2005 — March 2008) and Tax Senior, ING Funds Services, LLC(4) (January 2004 — March 2005). | |||
Huey P. Falgout, Jr. 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 45 | Secretary | August 2003 — Present | Chief Counsel, ING Americas, U.S. Legal Services (September 2003 — Present). | |||
Theresa K. Kelety 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 46 | Assistant Secretary | August 2003 — Present | Senior Counsel, ING Americas, U.S. Legal Services (April 2008 — Present). Formerly, Counsel, ING Americas, U.S. Legal Services (April 2003 — April 2008). | |||
Kathleen Nichols 7337 East Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 34 | Assistant Secretary | May 2008 — Present | Counsel, ING Americas, U.S. Legal Services (February 2008 — Present). Formerly, Associate, Ropes & Gray LLP (September 2005 — February 2008) |
(1) | The officers hold office until the next annual meeting of the Trustees and until their successors shall have been elected and qualified. | |
(2) | Mr. Mathews commenced services as CEO and President of the ING Funds on November 11, 2006. | |
(3) | ING Investments, LLC was previously named ING Pilgrim Investments, LLC. ING Pilgrim Investments, LLC is the successor in interest to ING Pilgrim Investments, Inc., which was previously known as Pilgrim Investments, Inc. and before that was known as Pilgrim America Investments, Inc. | |
(4) | ING Funds Services, LLC was previously named ING Pilgrim Group, LLC. ING Pilgrim Group, LLC is the successor in interest to ING Pilgrim Group, Inc., which was previously known as Pilgrim Group, Inc. and before that was known as Pilgrim America Group, Inc. | |
(5) | Directed Services, LLC is the successor in interest to Directed Services, Inc. | |
(6) | ING Funds Distributor, LLC is the successor in interest to ING Funds Distributor, Inc., which was previously known as ING Pilgrim Securities, Inc., and before that was known as Pilgrim Securities, Inc., and before that was known as Pilgrim America Securities, Inc. |
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Board Consideration and Approval of New Advisory and Sub-Advisory Contracts
Section 15 of the Investment Company Act of 1940 Act, as amended (the “1940 Act”) mandates that, when a series of ING Mutual Funds (the “Trust”) enters into a new sub-advisory agreement (“Sub-Advisory Contract”), the Board of Trustees (the “Board”) of the Trust, including a majority of Board members who have no direct or indirect interest in the Sub-Advisory contract, and who are not “interested persons” of the series, as such term is defined under the 1940 Act (the “Independent Trustees”), must approve the new arrangement. Discussed below are certain factors that the Board considered in determining whether to approve a new Sub-Advisory Contract for ING Foreign Fund (the “Fund”), one of its series.
ING Foreign Fund
Artio Global Management, LLC (“Artio”) has sub-advised ING Foreign Fund since July 2003 pursuant to a Sub-Advisory Contract (the “Former Agreement”) with ING Investments, LLC (the “Adviser”). As discussed in the Semi-Annual Report to Shareholders for the period ended April 30, 2009, the Former Agreement was last approved for renewal by the Board on November 14, 2008. On September 29, 2009, an initial public offering (the “IPO”) by Artio Global Investors, Inc. (“Artio Global Investors”), the parent company of Artio (formerly Julius Baer Management, LLC) was completed.
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 public offering of an investment adviser’s voting securities often is deemed to result in an assignment of the investment adviser’s advisory agreements. The consummation of the IPO constituted a sale of a controlling block of voting securities of Artio, thereby 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 Artio, effective as of September 29, 2009, under which Artio has continued to provide day-to-day management services to the Fund (the “New Agreement”). The IPO did not result in a change to the personnel managing the Fund or its investment strategies.
In anticipation of the IPO, at a meeting held on September 10, 2009, the Board, including a majority of the Independent Trustees, determined to re-appoint Artio 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 Agreements included the following: (1) a memorandum discussing the change of control of Artio and the resulting assignment and automatic termination of the Former Agreement; (2) responses to questions posed by K&L Gates, LLP, the Board’s independent legal counsel, on behalf of the Independent Trustees; (3) supporting documentation, including a copy of the form of 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 Artio in connection with their management of funds in the ING Funds Complex, including the Fund. Such information included, among other things a detailed analysis of the Fund’s performance, including attribution analyses, which had been provided at regular Board meetings.
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 Artio’s management of the Fund; (2) the nature and quality of the services to be provided by Artio under the New Agreement and the nature and quality of services provided by Artio under the Former Agreement; (3) the personnel, operations, and investment management capabilities of Artio after the consummation of the IPO, including Artio’s representations that the portfolio management personnel providing day-to-day management services to the Fund would remain in place through the close of the IPO 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 Artio and the fact that there would be no change in the projected profitability of Artio or the Adviser in connection with the IPO; (5) that the sub-advisory fee rate payable by the Adviser under the New Agreement would remain unchanged after the IPO is completed
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ADVISORY CONTRACT APPROVAL DISCUSSION (Unaudited) (continued)
and the IPO would not affect the advisory fee payable by the Fund to the Adviser; (6) Artio’s representations that the IPO would not adversely affect the nature and quality of services provided to the Fund and that the IPO was not expected to have a material adverse effect on the ability of Artio to provide those services; (7) Artio’s 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) Artio’s 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 with respect to the Fund: (1) Artio should be re-appointed as the Fund’s sub-adviser under the New Agreement and continue to provide sub-advisory services to the Fund; and (2) the sub-advisory fee rate payable by the Adviser to Artio 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 Contracts in November 2009.
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.
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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 Funds-of-Funds
ING Strategic Allocation Conservative Fund
ING Strategic Allocation Growth Fund
ING Strategic Allocation Moderate Fund
Domestic Equity Growth Funds
ING Corporate Leaders 100 Fund
ING Equity Dividend Fund
ING Growth Opportunities Fund
ING MidCap Opportunities Fund
ING Opportunistic LargeCap Fund
ING Small Company Fund
ING SmallCap Opportunities Fund
ING Tactical Asset Allocation Fund
Domestic Equity Index Funds
ING Index Plus LargeCap Fund
ING Index Plus MidCap Fund
ING Index Plus SmallCap Fund
Domestic Equity Value Funds
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
Global Equity Funds
ING Global Equity Dividend Fund
ING Global Natural Resources Fund
ING Global Real Estate Fund
ING Global Value Choice Fund
International Equity Funds
ING Alternative Beta Fund
ING Asia-Pacific Real Estate Fund
ING Emerging Countries Fund
ING European Real Estate Fund
ING Foreign Fund
ING Greater China Fund
ING Index Plus International Equity Fund
ING International Capital Appreciation Fund
ING International Real Estate Fund
ING International SmallCap Multi-Manager Fund
ING International Value Fund
ING International Value Choice Fund
ING Russia Fund
Global and International Fixed-Income Funds
ING Global Bond Fund
International Funds-of-Funds
ING Diversified International Fund
ING Global Target Payment Fund
Loan Participation Fund
ING Senior Income Fund
Money Market Funds*
ING Money Market Fund
ING Classic Money Market Fund
* | 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. Please see SEC filings for more information on the funds participation in the U.S. Treasury Department’s Temporary Guarantee Program for money market funds. |
Table of Contents
Investment Adviser
ING Investments, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
Administrator
ING Funds Services, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
Distributor
ING Funds Distributor, LLC
7337 East Doubletree Ranch Road
Scottsdale, Arizona 85258
Transfer Agent
PNC Global Investment Servicing (U.S.) Inc.
301 Bellevue Parkway
Wilmington, Delaware 19809
Independent Registered Public Accounting Firm
KPMG LLP
99 High Street
Boston, Massachusetts 02110
Custodian
The Bank of New York Mellon
One Wall Street
New York, New York 10286
Legal Counsel
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006
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Item 2. Code of Ethics.
As of the end of the period covered by this report, Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to the Registrant’s principal executive officer and principal financial officer. There were no amendments to the Code during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period covered by this report. The code of ethics is filed herewith pursuant to Item 10 (a)(l), Exhibit 99.CODE ETH.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that J. Michael Earley is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Earley is “independent” for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by KPMG LLP (“KPMG”), the principal accountant for the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $114,170 for year ended October 31, 2009 and $158,162 for year ended October 31, 2008. | |
(b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by KPMG that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $2,150 for the year ended October 31, 2009 and $2,150 for the year ended October 31, 2008. | |
(c) | Tax Fees: The aggregate fees billed in each of the last two fiscal years for professional services rendered by KPMG for tax compliance, tax advice, and tax planning were $22,306 in the year ended October 31, 2009 and $16,067 in the year ended October 31, 2008. Such services induced review of excise distribution calculations (if applicable), preparation of the Funds’ federal, state and excise tax returns, tax services related to mergers and routine consulting. | |
(d) | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by KPMG, other than the services reported in paragraphs (a) through (c) of this Item were $2,500 for the year ended October 31, 2009 and $7,500 for the year ended October 31, 2008. | |
(e) | (1) Audit Committee Pre-Approval Policies and Procedures |
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AUDIT AND NON-AUDIT SERVICES
PRE-APPROVAL POLICY
PRE-APPROVAL POLICY
I. Statement of Principles
Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Board of Directors or Trustees (the “Committee”) of the ING Funds (each a “Fund,” collectively, the “Funds”) set out on Exhibit A to this Audit and Non-Audit Services Pre-Approval Policy (“Policy”) is responsible for the oversight of the work of the Funds’ independent auditors. As part of its responsibilities, the Committee must pre-approve the audit and non-audit services performed by the auditors in order to assure that the provision of these services does not impair the auditors’ independence from the Funds. The Committee has adopted, and the Board has ratified, this Policy, which sets out the procedures and conditions under which the services of the independent auditors may be pre-approved.
Under Securities and Exchange Commission (“SEC”) rules promulgated in accordance with the Act, the Funds may establish two different approaches to pre-approving audit and non-audit services. The Committee may approve services without consideration of specific case-by-case services (“general pre-approval”) or it may pre-approve specific services (“specific pre-approval”). The Committee believes that the combination of these approaches contemplated in this Policy results in an effective and efficient method for pre-approving audit and non-audit services to be performed by the Funds’ independent auditors. Under this Policy, services that are not of a type that may receive general pre-approval require specific pre-approval by the Committee. Any proposed services that exceed pre-approved cost levels or budgeted amounts will also require the Committee’s specific pre-approval.
For both types of approval, the Committee considers whether the subject services are consistent with the SEC’s rules on auditor independence and that such services are compatible with maintaining the auditors independence. The Committee also considers whether a particular audit firm is in the best position to provide effective and efficient services to the Funds. Reasons that the auditors are in the best position include the auditors’ familiarity with the Funds’ business, personnel, culture, accounting systems, risk profile, and other factors, and whether the services will enhance the Funds’ ability to manage and control risk or improve audit quality. Such factors will be considered as a whole, with no one factor being determinative.
The appendices attached to this Policy describe the audit, audit-related, tax-related, and other services that have the Committee’s general pre-approval. For any service that has been approved through general pre-approval, the general pre-approval will remain in place for a period 12 months from the date of pre-approval, unless the Committee determines that a different period is appropriate. The Committee will annually review and pre-approve the services that may be provided by the independent auditors without specific pre-approval. The Committee will revise the list of services subject to general pre-approval as appropriate. This Policy does not serve as a delegation to Fund management of the Committee’s duty to pre-approve services performed by the Funds’ independent auditors.
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II. Audit Services
The annual audit services engagement terms and fees are subject to the Committee’s specific pre-approval. Audit services are those services that are normally provided by auditors in connection with statutory and regulatory filings or engagements or those that generally only independent auditors can reasonably provide. They include the Funds’ annual financial statement audit and procedures that the independent auditors must perform in order to form an opinion on the Funds’ financial statements (e.g., information systems and procedural reviews and testing). The Committee will monitor the audit services engagement and approve any changes in terms, conditions or fees deemed by the Committee to be necessary or appropriate.
The Committee may grant general pre-approval to other audit services, such as statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or issued in connection with securities offerings.
The Committee has pre-approved the audit services listed on Appendix A. The Committee must specifically approve all audit services not listed on Appendix A.
III. Audit-related Services
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or the review of the Funds’ financial statements or are traditionally performed by the independent auditors. The Committee believes that the provision of audit-related services will not impair the independent auditors’ independence, and therefore may grant pre-approval to audit-related services. Audit-related services include accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures relating to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Form N-SAR or Form N-CSR.
The Committee has pre-approved the audit-related services listed on Appendix B. The Committee must specifically approve all audit-related services not listed on Appendix B.
IV. Tax Services
The Committee believes the independent auditors can provide tax services to the Funds, including tax compliance, tax planning, and tax advice, without compromising the auditors’ independence. Therefore, the Committee may grant general pre-approval with respect to tax services historically provided by the Funds’ independent auditors that do not, in the Committee’s view, impair auditor independence and that are consistent with the SEC’s rules on auditor independence.
The Committee will not grant pre-approval if the independent auditors initially recommends a transaction the sole business purpose of which is tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Committee may consult
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outside counsel to determine that tax planning and reporting positions are consistent with this Policy.
The Committee has pre-approved the tax-related services listed on Appendix C. The Committee must specifically approve all tax-related services not listed on Appendix C.
V. Other Services
The Committee believes it may grant approval of non-audit services that are permissible services for independent auditors to a Fund. The Committee has determined to grant general pre-approval to other services that it believes are routine and recurring, do not impair auditor independence, and are consistent with SEC rules on auditor independence.
The Committee has pre-approved the non-audit services listed on Appendix D. The Committee must specifically approve all non-audit services not listed on Appendix D.
A list of the SEC’s prohibited non-audit services is attached to this Policy as Appendix E. The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these impermissible services and the applicability of exceptions to certain of the SEC’s prohibitions.
VI. Pre-approval of Fee levels and Budgeted Amounts
The Committee will annually establish pre-approval fee levels or budgeted amounts for audit, audit-related, tax and non-audit services to be provided to the Funds by the independent auditors. Any proposed services exceeding these levels or amounts require the Committee’s specific pre-approval. The Committee considers fees for audit and non-audit services when deciding whether to pre-approve services. The Committee may determine, for a pre-approval period of 12 months, the appropriate ratio between the total amount of fees for the Fund’s audit, audit-related, and tax services (including fees for services provided to Fund affiliates that are subject to pre-approval), and the total amount of fees for certain permissible non-audit services for the Fund classified as other services (including any such services provided to Fund affiliates that are subject to pre-approval).
VII. Procedures
Requests or applications for services to be provided by the independent auditors will be submitted to management. If management determines that the services do not fall within those services generally pre-approved by the Committee and set out in the appendices to these procedures, management will submit the services to the Committee or its delagee. Any such submission will include a detailed description of the services to be rendered. Notwithstanding this paragraph, the Committee will, on a quarterly basis, receive from the independent auditors a list of services provided for the previous calendar quarter on a cumulative basis by the auditors during the Pre-Approval Period.
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VIII. Delegation
The Committee may delegate pre-approval authority to one or more of the Committee’s members. Any member or members to whom such pre-approval authority is delegated must report any pre-approval decisions, including any pre-approved services, to the Committee at its next scheduled meeting. The Committee will identify any member to whom pre-approval authority is delegated in writing. The member will retain such authority for a period of 12 months from the date of pre-approval unless the Committee determines that a different period is appropriate. The period of delegated authority may be terminated by the Committee or at the option of the member.
IX. Additional Requirements
The Committee will take any measures the Committee deems necessary or appropriate to oversee the work of the independent auditors and to assure the auditors’ independence from the Funds. This may include reviewing a formal written statement from the independent auditors delineating all relationships between the auditors and the Funds, consistent with Independence Standards Board No. 1, and discussing with the auditors their methods and procedures for ensuring independence.
Effective April 23, 2008, the KPMG LLP (“KPMG”) audit team for the ING Funds accepted the global responsibility for monitoring the auditor independence for KPMG relative to the ING Funds. Using a proprietary system called Sentinel, the audit team is able to identify and manage potential conflicts of interest across the member firms of the KPMG International Network and prevent the provision of prohibited services to the ING entities that would impair KPMG independence with the respect to the ING Funds. In addition to receiving pre-approval from the ING Funds Audit Committee for services provided to the ING Funds and for services for ING entities in the Investment Company Complex, the audit team has developed a process for periodic notification via email to the ING Funds’ Audit Committee Chairpersons regarding requests to provide services to ING Groep NV and its affiliates from KPMG offices worldwide. Additionally, KPMG provides a quarterly summary of the fees for services that have commenced for ING Groep NV and Affiliates at each Audit Committee Meeting.
Last Approved: November 13, 2008
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Appendix A
Pre-Approved Audit Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Pre-Approved Audit Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Service | The Fund(s) | Fee Range | ||
Statutory audits or financial audits (including tax services associated with audit services) | Ö | As presented to Audit Committee1 | ||
Services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., consents), and assistance in responding to SEC comment letters. | Ö | Not to exceed $9,750 per filing | ||
Consultations by Fund management with respect to accounting or disclosure treatment of transactions or events and/or the actual or potential effect of final or proposed rules, standards or interpretations by the SEC, Financial Accounting Standards Board, or other regulatory or standard setting bodies. | Ö | Not to exceed $8,000 during the Pre-Approval Period | ||
Seed capital audit and related review and issuance of consent on the N-2 registration statement | Ö | Not to exceed $12,600 per audit |
1 | For new Funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing Funds, pro-rated in accordance with inception dates as provided in the auditors’ Proposal or any Engagement Letter covering the period at issue. Fees in the Engagement Letter will be controlling. |
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Appendix B
Pre-Approved Audit-Related Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Pre-Approved Audit-Related Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Fund | ||||||
Service | The Fund(s) | Affiliates | Fee Range | |||
Services related to Fund mergers (Excludes tax services — See Appendix C for tax services associated with Fund mergers) | Ö | Ö | Not to exceed $10,000 per merger | |||
Consultations by Fund management with respect to accounting or disclosure treatment of transactions or events and/or the actual or potential effect of final or proposed rules, standards or interpretations by the SEC, Financial Accounting Standards Board, or other regulatory or standard setting bodies. [Note: Under SEC rules some consultations may be “audit” services and others may be “audit-related” services.] | Ö | Not to exceed $5,000 per occurrence during the Pre-Approval Period | ||||
Review of the Funds’ semi-annual financial statements | Ö | Not to exceed $2,200 per set of financial statements per fund | ||||
Reports to regulatory or government agencies related to the annual engagement | Ö | Up to $5,000 per occurrence during the Pre-Approval Period | ||||
Regulatory compliance assistance | Ö | Ö | Not to exceed $5,000 per quarter | |||
Training courses | Ö | Not to exceed $2,000 per course | ||||
For Prime Rate Trust, agreed upon procedures for quarterly reports to rating agencies | Ö | Not to exceed $9,450 per quarter | ||||
For Prime Rate Trust and Senior Income Fund, agreed upon procedures for the Revolving Credit and Security Agreement with Citigroup | Ö | Not to exceed $21,000 per fund per year |
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Appendix C
Pre-Approved Tax Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Pre-Approved Tax Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Fund | ||||||
Service | The Fund(s) | Affiliates | Fee Range | |||
Preparation of federal and state income tax returns and federal excise tax returns for the Funds including assistance and review with excise tax distributions | Ö | As presented to Audit Committee2 | ||||
Review of IRC Sections 851(b) and 817(h) diversification testing on a real-time basis | Ö | As presented to Audit Committee2 | ||||
Assistance and advice regarding year-end reporting for 1099’s | Ö | As presented to Audit Committee2 | ||||
Tax assistance and advice regarding statutory, regulatory or administrative developments | Ö | Ö | Not to exceed $5,000 for the Funds or for the Funds’ investment adviser during the Pre-Approval Period |
2 | For new Funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing Funds, pro-rated in accordance with inception dates as provided in the auditors’ Proposal or any Engagement Letter covering the period at issue. Fees in the Engagement Letter will be controlling. |
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Appendix C, continued
Fund | ||||||
Service | The Fund(s) | Affiliates | Fee Range | |||
Tax training courses | Ö | Not to exceed $2,000 per course during the Pre-Approval Period | ||||
Tax services associated with Fund mergers | Ö | Ö | Not to exceed $4,000 per fund per merger during the Pre-Approval Period | |||
Other tax-related assistance and consultation, including, without limitation, assistance in evaluating derivative financial instruments and international tax issues, qualification and distribution issues, and similar routine tax consultations. | Ö | Not to exceed $120,000 during the Pre-Approval Period |
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Appendix D
Pre-Approved Other Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Pre-Approved Other Services for the Pre-Approval Period January 1, 2009 through December 31, 2009
Service | The Fund(s) | Fund Affiliates | Fee Range | |||
Agreed-upon procedures for Class B share 12b-1 programs | Ö | Not to exceed $60,000 during the Pre-Approval Period | ||||
Security counts performed pursuant to Rule 17f-2 of the 1940 Act (i.e., counts for Funds holding securities with affiliated sub-custodians) Cost to be borne 50% by the Funds and 50% by ING Investments, LLC. | Ö | Ö | Not to exceed $5,000 per Fund during the Pre-Approval Period | |||
Agreed upon procedures for 15 (c) FACT Books | Ö | Not to exceed $35,000 during the Pre-Approval Period |
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Appendix E
Prohibited Non-Audit Services
Dated: January 1, 2009
Dated: January 1, 2009
• | Bookkeeping or other services related to the accounting records or financial statements of the Funds | ||
• | Financial information systems design and implementation | ||
• | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports | ||
• | Actuarial services | ||
• | Internal audit outsourcing services | ||
• | Management functions | ||
• | Human resources | ||
• | Broker-dealer, investment adviser, or investment banking services | ||
• | Legal services | ||
• | Expert services unrelated to the audit | ||
• | Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible |
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EXHIBIT A
ING EQUITY TRUST
ING FUNDS TRUST
ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME FUND
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND
ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME FUND
ING RISK MANAGED NATURAL RESOURCES FUND
ING FUNDS TRUST
ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME FUND
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND
ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME FUND
ING RISK MANAGED NATURAL RESOURCES FUND
.
ING INVESTORS TRUST
ING MAYFLOWER TRUST
ING MUTUAL FUNDS
ING PARTNERS, INC.
ING PRIME RATE TRUST
ING SENIOR INCOME FUND
ING SEPARATE PORTFOLIOS TRUST
ING VARIABLE INSURANCE TRUST
ING VARIABLE PRODUCTS TRUST
ING INVESTORS TRUST
ING MAYFLOWER TRUST
ING MUTUAL FUNDS
ING PARTNERS, INC.
ING PRIME RATE TRUST
ING SENIOR INCOME FUND
ING SEPARATE PORTFOLIOS TRUST
ING VARIABLE INSURANCE TRUST
ING VARIABLE PRODUCTS TRUST
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(e)(2) | Percentage of services referred to in 4(b) — (4)(d) that were approved by the audit committee | |
100% of the services were approved by the audit committee. | ||
(f) | Percentage of hours expended attributable to work performed by other than full time employees of KPMG if greater than 50%. | |
Not applicable. | ||
(g) | Non-Audit Fees: The non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant were $2,042,810 for year ended October 31, 2009 and $2,168,685 for year ended October 31, 2008. | |
(h) | Principal Accountants Independence: The Registrant’s Audit committee has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining KPMG’s independence. |
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Item 5. Audit Committee of Listed Registrants.
Not applicable.
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 minimum qualifications that must be met. Specific qualifications of candidates for Board membership will be based on the needs of the Board at the time of nomination.
The Nominating Committee is willing to consider nominations received from shareholders and shall assess shareholder nominees in the same manner as it reviews its own nominees. A shareholder nominee for director should be submitted in writing to the Fund’s Secretary. Any such shareholder nomination should include at a minimum the following information as to each individual proposed for nomination as trustee: such individual’s written consent to be named in the proxy statement as a nominee (if nominated) and to serve as a trustee (if elected), and all information relating to such individual that is required to be disclosed in the solicitation of proxies for election of trustees, or is otherwise required, in each case under applicable federal securities laws, rules and regulations.
The Secretary shall submit all nominations received in a timely manner to the Nominating Committee. To be timely, any such submission must be delivered to the Fund’s Secretary not earlier than the 90th day prior to such meeting and not later than the close of business on the later of the 60th day prior to such meeting or the 10th day following the day on which public announcement of the date of the meeting is first made, by either disclosure in a press release or in a document publicly filed by the Fund with the Securities and Exchange Commission.
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) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | |
(a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT. | |
(b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. | |
(3) | Not applicable. |
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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 Mayflower Trust
By | /s/ Shaun P, Mathews | |||
President and Chief Executive Officer |
Date: January 6, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /s/ Shaun P. Mathews | |||
President and Chief Executive Officer |
Date: January 6, 2010
By | /s/ Todd Modic | |||
Senior Vice President and Chief Financial Officer |
Date: January 6, 2010