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SECURITIES AND EXCHANGE COMMISSION
REGISTERED MANAGEMENT INVESTMENT COMPANIES
| 7337 E. Doubletree Ranch Rd., Scottsdale, AZ | 85258 | |
| (Address of principal executive offices) | (Zip code) |
(Name and address of agent for service)
| Date of fiscal year end: | October 31 | |||||||
| Date of reporting period: | November 1, 2006 to October 31, 2007 |
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| Funds |
| Annual Report | |
| October 31, 2007 | |
| Classes A, B, C, I, O, Q and R |
| 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 Disciplined International SmallCap Fund • ING Emerging Countries Fund • ING Foreign Fund • ING Greater China Fund • ING Index Plus International Equity Fund • ING International Capital Appreciation Fund • ING International Equity Dividend Fund • ING International Growth Opportunities Fund (formerly, ING International Fund) • ING International Real Estate Fund • ING International SmallCap Fund • ING International Value Fund • ING International Value Choice Fund • ING International Value Opportunities Fund • ING Russia Fund | Global and International Fixed-Income Funds • ING Emerging Markets Fixed Income Fund • ING Global Bond Fund International Fund-of-Funds • ING Diversified International Fund | |
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PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how to vote proxies related to portfolio securities is available (1) without charge, upon request, by calling Shareholder Services toll-free at (800) 992-0180; (2) on the Funds’ website at www.ingfunds.com; and (3) on the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. Information regarding how the Funds voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds’ website at www.ingfunds.com and on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO HOLDINGS
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330; and is available upon request from the Funds by calling Shareholder Services toll-free at (800) 992-0180.
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Dear Shareholder,
It is impossible to discuss the current market climate without acknowledging the recent turmoil brought on by problems in the sub-prime mortgage market. Clearly the excesses in this sector of the market and other segments of collateralized debt have created challenges throughout credit markets worldwide.
Amidst the volatility, we at ING Funds remind our shareholders that the creditworthiness and quality of our funds’ holdings is the ultimate priority to us — whether those holdings are part of our money market funds, fixed income funds or equity funds. Market volatility is an often present component of investing and we believe the best way to manage through turbulent environments is to build a well-balanced, fully-diversified portfolio, which aligns with your goals and risk tolerance.
ING Funds remains committed to developing and offering a diverse array of mutual funds designed to meet the goals of most investors. We urge you to work with your investment professional to make sure you are invested appropriately. Together, you can select the funds that will help you achieve your financial goals. We thank you for choosing ING Funds and look forward to continuing to serve you.
Sincerely,
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.
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In our semi-annual report, we described global equities in the form of the Morgan Stanley Capital International World IndexSM(1) (“MSCI World IndexSM”) measured in local currencies, including net reinvested dividends (“MSCI” for regions discussed below) reeling from a sharp correction in the China market before recovering by the end of April 2007. Nervous optimism continued on into the summer when a credit crisis sent investors fleeing stock markets, before Federal Reserve rate cuts provided some solace. For the six month period ended April 30, 2007 and for the year ended October 31, 2007, the MSCI World IndexSM returned 4.3% and 20.39%, respectively. In currencies the view that European interest rates were on the way up while those in the U.S. were not, supported the pound and euro, while the yen continued to be dragged down by the “carry trade”, in which speculators borrow in yen at low interest and buy higher yielding securities in other currencies. But in the flight from risk, these trades were unwound and the yen rebounded. In the six month period ended October 31, 2007, the dollar fell 5.2%, 3.2% and 4.2% against the euro (making repeated new lows), pound and yen, respectively.
By April 2007, the recession in the housing market had taken a new disturbing turn, as lax lending standards especially in the sub-prime mortgage loan sector were sending foreclosure rates and default provisions soaring, and some lenders into bankruptcy. Furthermore, the huge volumes of securities backed by such loans were declining in value, if they could find a bid at all. Much of this exposure was held by hedge funds and structured investment vehicles, which financed their purchases with investors’ money and by issuing lower yielding short term commercial paper, a variant of the carry trade. In June 2007, the investment bank, Bear Stearns, had to step in to rescue two of its hedge funds in distress over holdings in mortgage bonds.
So far, few observers believed that sub-prime mortgage problems might lead to recession. But from mid-July 2007 a series of shocks sent investors scurrying for cover. A large mortgage lender, Countrywide, reported that the sub-prime default crisis had spread to other classes of mortgage loans. Worse, by month end, American Home Mortgage revealed that its creditors had initiated margin calls and that bankruptcy was a possibility. A week later it was fact.
Confirmation that the global asset-backed commercial paper market was close to atrophy came on August 9, 2007 from an unlikely source when French bank BNP Paribas announced similar problems with its own U.S. mortgage-backed structured investment vehicles. Banks were now reluctant to lend to each other because none could be sure where the exposure to tainted securities ultimately lay.
Central banks responded by pouring billions into the inter-bank system. On August 17, 2007 the Federal Reserve cut the discount rate, (at which it will lend to banks), by 50 basis points (0.50%), followed on September 18, 2007 by a federal funds rate reduction of an unexpectedly soothing 50 basis points (0.50%), and another 50 basis points (0.50%) cut in the discount rate.
Finally, on October 31, 2007, the Federal Open Market Committee (“FOMC”) cut both rates by a further 0.25%.
U.S. equities, represented by the Standard and Poor’s 500® Composite Stock Price Index(2) (“S&P 500® Index”), including dividends, returned 5.5% for the six month period ended October 31, 2007, and 14.56% for the year ended October 31, 2007. It finally breached its March 2000 record in May 2007 and from there the index proceeded fitfully to its best level yet on July 19, 2007, reassured by better than expected corporate profits. But the prospect of continued takeover activity, that other great pillar of stock market support worldwide, vanished with the liquidity required to fund it as the events described above played out. This and general risk aversion took the S&P 500® Index down about 9.5% in the next 19 trading sessions. Recovery was swift after rate cut expectations set in, however, with a rise of nearly 3% in response to the pleasant surprise on September 18, 2007, and a new all time record close on October 9, 2007.
Internationally, the MSCI Japan® Index(3) fell 3.5% in the six month period ended October 31, 2007, amid the usual cocktail of contradictory economic statistics that ultimately turned sour. Initially, GDP growth was reported strong at 3.2% annualized. Quarterly capital spending and the trade surplus made new records, with China replacing the U.S. as Japan’s biggest trading partner. Unemployment remained at a nine-year low. But consumer prices and wages had started falling again and continued to fall almost without interruption through October while the unwinding of carry trades strengthened the yen and threatened all-
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important exports. For the year ended October 31, 2007, the MSCI Japan® Index returned 4.84%. The MSCI Europe ex UK® Index(4) edged up 1.8% in the six month period ended October 31, 2007. A rally on high consumer and business confidence, continuing merger and acquisition activity and the lowest Eurozone unemployment since records began, gave way to nervousness in mid-July 2007 after another rate increase and turned into a rout as the sub-prime debacle unfolded. On August 16, 2007, some European stock indices had their biggest one-day fall in four and a half years. The U.S. rate cuts were not reciprocated by the European Central Bank, but still inspired a partial recovery, even as inflation accelerated to 2.6%. For the year ended October 31, 2007, the MSCI Europe ex UK® Index returned 30.29%. The UK added 5.3%. Stocks surged into the summer shrugging off a rate increase to 5.75%, a six-year high. A housing boom and robust service sector had raised year over year GDP growth to 3.0%. Non-financial companies were making record profits. Retail sales were buoyant and consumer confidence was high. The slide into the trough on August 16, 2007, was even more violent than in continental Europe. But with the Bank of England now clearly on hold and the Federal Reserve evidently determined to ease rates, October 2007 ended with stocks near their best levels of the period.
(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 MSCI Japan® Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan.
(4) 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.
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 (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 and Moudy El Khodr, Senior Investment Manager Equities both of ING Investment Management Advisors B.V. — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 15.80% compared to the Morgan Stanley Capital International World IndexSM(1) (“MSCI World IndexSM”), which returned 20.39% for the same period.
Portfolio Specifics: In our opinion, we believe market return for the year ended October 31, 2007, was largely driven by momentum growth stocks. These stocks generally pay lower dividends than value stocks. The Fund currently holds stocks with higher average dividend yields; during the fiscal year this was a disadvantage as the Fund did not hold or was underweight in the stocks that drove market return.
Another result of the Fund’s dividend bias was an emphasis on certain sectors and countries. The Fund was overweight in financials, utilities and telecoms and underweight information technology (“IT”) and Japan. Underweights in IT and materials detracted from results, but the absence from Japan helped performance.
The Fund’s underweight in healthcare and overweight in telecoms contributed the most to performance for the fiscal year. The former lagged with companies’ problems from competition from generics and investors favoring non-defensive stocks. Telecoms rose as investors welcomed positive news about second quarter and third quarter earnings.
Tele Norte Leste Participacoes SA ADR rebounded from July’s drop due to credit jitters. Its second quarter net profit rose 65% amid growth in its
Country Allocation
client base, increased sales of convergent products and an improved financial position. Secondly, the Brazilian government hinted that they may change laws governing mergers this year to allow the combination of Tele Norte and Brasil Telecom Participacoes SA ADR, the country’s third-biggest phone company. Mergers and acquisitions had propelled the stock earlier in 2007. BCE, Inc. of Canada (sold) was up principally due to a bidding war between a few of its larger shareholders and private equity groups.
The Fund’s two best performing stocks were PetroChina Co., Ltd. (“Petrochina”) (sold) and Petroleo Brasileiro SA ADR (“Petroleo”), up 135% and 118%, respectively. Petrochina and Petroleo rose as both started with a low reserve replacement ratio and this increased substantially along with earnings. Petrochina rose strongly in September as the company will be listed on the Shanghai exchange. At present, A-class shares are listed only in Hong Kong. The potential mass influx of “new investors” pushed the stock north. The stock thus reached our dividend threshold and we sold it in September. Petroleo benefited from rising international oil prices and its emerging market status.
We lost performance due to our underweights in industrials, IT and materials. On an absolute basis, the two most detrimental sectors were financials and materials. Financials had a strong run until February 2007, when the first news of sub-prime woes emerged; after that the sector heavily underperformed. The two most harmful securities were Washington Mutual, Inc. and First Horizon National Corp. The difficulty in calculating the write downs and the companies’ lack of visibility only worsened the sector’s performance.
Our two worst performing stocks were Precision Drilling and DSG International PLC (“DSG”). The former performed in line with the market until July when it announced the closure of one-fifth of its rigs and future earnings estimates were downgraded. DSG issued a profit warning in January. Since then the stock has underperformed, margins at the company are under pressure, their shops are a heavy fixed cost on a business where customers can shop online or at competitor’s and purchase goods at a better price.
Top Ten Holdings*
| Citigroup, Inc. | 1.8% |
| Vivendi | 1.6% |
| UST, Inc. | 1.6% |
| Altria Group, Inc. | 1.6% |
| ENI S.p.A. | 1.5% |
| Pfizer, Inc. | 1.5% |
| GlaxoSmithKline PLC | 1.4% |
| Bank of America Corp. | 1.4% |
| TransCanada Corp. | 1.4% |
| Royal Bank of Scotland Group PLC | 1.4% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
Current Strategy and Outlook: The outlook for the strategy, in our opinion, remains positive. We also believe investments in defensive companies will give the strategy downside protection and lower volatility. Regardless of any scenario, the strategy will look for sectors or individual stocks to exploit (temporary) under-valuations that often take place.
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.
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| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||||||
| 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 | September 17, 2003 | October 24, 2003 | October 29, 2003 | August 1, 2007 | November 15, 2006 | ||||||||||||||||||||
| Including Sales Charge: | |||||||||||||||||||||||||
Class A(1) | 9.16 | % | 18.01 | % | — | — | — | — | |||||||||||||||||
Class B(2) | 9.94 | % | — | 18.22 | % | — | — | — | |||||||||||||||||
Class C(3) | 13.94 | % | — | — | 18.19 | % | — | — | |||||||||||||||||
| Class I | — | — | — | — | 7.26 | % | — | ||||||||||||||||||
| Class O | — | — | — | — | — | 15.12 | % | ||||||||||||||||||
| Excluding Sales Charge: | |||||||||||||||||||||||||
| Class A | 15.80 | % | 19.72 | % | — | — | — | — | |||||||||||||||||
| Class B | 14.94 | % | — | 18.52 | % | — | — | — | |||||||||||||||||
| Class C | 14.94 | % | — | — | 18.19 | % | — | — | |||||||||||||||||
| Class I | — | — | — | — | 7.26 | % | — | ||||||||||||||||||
| Class O | — | — | — | — | — | 15.12 | % | ||||||||||||||||||
MSCI World Index SM(4) | 20.39 | % | 18.28 | %(5) | 16.99 | %(6) | 16.99 | %(6) | 7.89 | % | 20.39 | %(7) | |||||||||||||
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. Share, 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 2%, 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 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.
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ING Global Natural Resources Fund (the “Fund”) seeks to attain long-term capital appreciation. The Fund is managed by James A. Vail, CFA, Portfolio Manager and Anthony Socci, Portfolio Manager of ING Investment Management Co. — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 43.22%, compared to the Standard & Poor’s 500® Composite Stock Price Index(1) (“S&P 500® Index”) and the Standard & Poor’s GSSITM Natural Resources Index(2) (“S&P GSSITM Natural Resources Index”) which returned 14.56% and 40.46%, respectively, for the same period.
Portfolio Specifics: Natural resources continued to experience strong price performance in the fiscal year ended October 31, 2007. Crude oil rose significantly during this period, reflecting supply interruption fears and geopolitical tensions. Natural gas pricing increased towards the end of the period as the supply of liquefied natural gas imports was called into question, reflecting rising foreign demand. Within materials, the strongest performer was lead, which more than doubled as overseas auto production accelerated, and ended the reporting period close to its all-time high.
The U.S. dollar weakness and the credit meltdown were the key drivers behind the strength in gold. Finally, the U.S. housing slowdown brought lumber prices down from their summer highs; lumber is expected to remain at low levels for the immediate future.
During the fiscal year, the Fund benefited from stock selection in the materials sector, particularly among gold and precious metals companies. Gold’s performance reflected the desire for hard assets in the face of mounting credit concerns. Our decision to overweight diversified metals and mining aided performance, as this sub-sector was helped by strong global demand for coal, iron ore and base metals.
Country Allocation
The Fund was hurt by weak stock selection in the energy sector: particularly among coal and consumable fuels; and oil and gas exploration, production and drilling. Partially offsetting these detractors was an underweight in the largest integrated oil and gas companies, which have been hurt by a shift in worldwide oil and gas reserves to nationalized oil companies.
Top energy performers, Petroleo Brasileiro SA and CNOOC Ltd. ADR, were foreign domiciled companies that were helped by rising oil prices. Petroleo Brasileiro SA was able to increase its oil production while CNOOC Ltd. ADR benefited from Chinese demand. Within materials, Major Drilling, and Cia Vale do Rio Doce ADR, were diversified metals and mining companies that benefited from rising commodity prices. Our position in McDermott International, Inc., an infrastructure play within the industrial sector, benefited from its offshore construction for oil companies.
The greatest individual detractor was Evergreen Energy, a coal beneficiation company. Negative investor sentiment weighed heavily on the stock early in the period and the shares were subsequently sold. Hercules Offshore, Inc. and Valero Energy Corp. are highly exposed to shallow water drilling in the Gulf of Mexico. This region has been in transition and we expect activities to pick up. Oil and gas equipment and service provider Geokinetics, Inc. was hurt by seasonality. We believe refining margins will improve in next year’s driving season. ConocoPhillips Consol Energy, Inc. reported disappointing results and was punished in the market.
Current Strategy and Outlook: We remain convinced that we are in the middle of a longer and stronger natural resource cycle, driven by industrialization and urbanization trends in emerging economies. These trends, coupled with the global growth in infrastructure spending, are energy and metal intensive. In our opinion, supply cannot react to this high demand over the short term. Any supply disruption, e.g., strikes, mining accidents or refinery outages, may push prices higher. Industry consolidation is putting more resources in fewer hands. In our opinion, this supports higher prices than historic trends would suggest. Should the U.S. economy soften, forcing the Federal Reserve Board to continue easing, the dollar could fall further and gold prices could go higher. In our opinion, the Fund is well positioned to benefit from these global trends.
Top Ten Holdings
| Schlumberger Ltd. | 5.2% |
| ExxonMobil Corp. | 3.5% |
| Occidental Petroleum Corp. | 3.2% |
| Petroleo Brasileiro SA | 3.1% |
| XTO Energy, Inc. | 2.8% |
| Devon Energy Corp. | 2.7% |
| Encana Corp. | 2.7% |
| ConocoPhillips | 2.5% |
| Valero Energy Corp. | 2.3% |
| Freeport-McMoRan Copper & Gold, Inc. | 2.1% |
Portfolio holdings are subject to change daily.
(2) The S&P GSSITM Natural Resources Index (formerly, known as the Goldman Sachs Natural Resources Index) is an unmanaged index and a market-capitalization weighted index of stocks designed to measure the performance of companies in the natural resources sector, which includes energy, precious metals, timber and other sub-sectors. Each sector index is a modified-capitalization weighted index, the constituents of which are selected according to objective screening criteria. The weight of a particular stock in each Sector Index is capped at a cap level determined on a sector-by-sector basis.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
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| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||
| Since Inception | |||||||||||||||||
| of Class I | |||||||||||||||||
| 1 Year | 5 Year | 10 Year | August 1, 2007 | ||||||||||||||
Including Sales Charge: | |||||||||||||||||
Class A(1) | 34.97 | % | 27.07 | % | 14.41 | % | — | ||||||||||
| Class I | — | — | — | 17.56 | % | ||||||||||||
Excluding Sales Charge: | |||||||||||||||||
| Class A | 43.22 | % | 28.60 | % | 15.08 | % | — | ||||||||||
| Class I | — | — | — | 17.56 | % | ||||||||||||
S&P 500® Index(2) | 14.56 | % | 13.88 | % | 7.10 | % | 6.97 | % | |||||||||
S&P GSSITM Natural Resources Index(3) | 40.46 | % | 30.42 | % | 12.05 | % | 12.10 | % | |||||||||
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 GSSITM Natural Resources Index (formerly, known as the Goldman Sachs Natural Resources Index) is an unmanaged index and a market-capitalization weighted index of stocks designed to measure the performance of companies in the natural resources sector, which includes energy, precious metals, timber and other sub-sectors. Each sector index is a modified-capitalization weighted index, the constituents of which are selected according to objective screening criteria. The weight of a particular stock in each Sector Index is capped at a cap level determined on a sector-by-sector basis.
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ING Global Real Estate Fund (the “Fund”) seeks to provide investors with high total return. 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, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 15.44% compared to the Standard & Poor’s/ Citigroup World Property Index(1) (“S&P/ Citigroup World Property Index”), which returned 13.93% for the same period.
Portfolio Specifics: By region, Asia-Pacific was the strongest performing region for the period with a 39.0% total return, followed by North America which returned 0.4% and Europe which returned -2.3%. Performance in the region was broad-based with total returns achieved in each of the major countries within this region: Hong Kong returned 73.7%, Singapore returned 56.0%, Australia returned 42.6% and Japan returned 12.2%. These strong returns were fueled by robust economic growth being generated by emerging economies within the region and those countries which benefit from this growth. The rapid urbanization of China in particular benefited property companies that were able to take advantage of this growth, including Hong Kong-based property developers of residential and commercial space which have expanded into mainland China.
Within Europe, the United Kingdom property stocks were particular laggards returning -13.3% during the period, versus property stocks in Continental Europe which returned 6.2% for the same period. The U.K. has been beset by concerns of decelerating job growth, particularly in the financial district of London. Sentiment
Country Allocation
has turned for the worse as the expectation increases that property yields will increase in the coming year. The Fund remains overweight U.K. property stocks, as we believe they will begin to look more attractive during the coming year.
Relative outperformance versus the benchmark was generated primarily by stock picking in Hong Kong, Japan, the United States and Canada. In Hong Kong, overweight positions in mainland residential developers Agile Property Holdings Ltd. and Guangzhou R&F Properties Co., Ltd. contributed to relative returns, as each of these positions returned over 100% during the year. In Japan, an overweight position in Tokyo-based office companies also contributed to relative performance, including Mitsui Fudosan Co., Ltd. which is primarily a developer and landlord of office and condominium properties in the five central wards of Tokyo. Office fundamentals in Tokyo continue to improve, with rents increasing and vacancy levels below 2.6%, on average. Top performers in the U.S. included Hilton Hotels, which appreciated sharply as a result of the announcement during the summer that it would be taken private by the Blackstone Group LP. Archstone Communities, a national apartment real estate investment trust (“REIT”), appreciated as the result of being taken private at a sharp premium. Federal Realty Investment Trust and Ventas, Inc., U.S. shopping center and healthcare REITs, respectively, also contributed to relative performance. Canadian holding Sunrise Senior Living significantly contributed to relative performance as the result of being acquired at a sharp premium by a U.S. healthcare REIT during the year.
Current Strategy and Outlook: In our opinion, the rationale for a global listed property strategy remains very much intact including diversification via low correlation to broad equities and bonds, attractive current yield, attractive valuations and the spread of the REIT structure globally. This remains true even under the possible scenario of slowing global economic growth over the coming year. Investment themes looking out to 2008 include a continuing emphasis on investing in higher growth regions of the world, including the Asia-Pacific region, and looking for
Top Ten Holdings*
| Westfield Group | 5.2% |
| Mitsui Fudosan Co., Ltd. | 4.3% |
| Mitsubishi Estate Co., Ltd. | 4.1% |
| Sun Hung Kai Properties Ltd. | 3.6% |
| Simon Property Group, Inc. | 3.3% |
| Unibail-Rodamco | 3.1% |
| Cheung Kong Holdings Ltd. | 2.4% |
| Boston Properties, Inc. | 2.3% |
| Prologis | 2.2% |
| Vornado Realty Trust | 2.1% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
opportunities in select markets which are currently under-represented in the listed markets but which show stable to improving property fundamentals. Given the increased volatility in global equity markets, Fund strategy will be to position itself with an orientation to top quality by management team, strategy and physical properties. Through an average 3% - 4% dividend yield plus high single digits prospective annual earnings growth, we believe global property stocks continue to be well-positioned to conservatively deliver attractive total returns over the next several years.
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.
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Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||||||||||
| 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 | 5 Year | November 5, 2001 | March 15, 2002 | January 8, 2002 | June 3, 2005 | November 15, 2006 | |||||||||||||||||||||||
| Including Sales Charge: | |||||||||||||||||||||||||||||
Class A(1) | 8.78 | % | 26.41 | % | 23.09 | % | — | — | — | — | |||||||||||||||||||
Class B(2) | 9.59 | % | 26.80 | % | — | 22.58 | % | — | — | — | |||||||||||||||||||
Class C(3) | 13.57 | % | 26.99 | % | — | — | 22.56 | % | — | — | |||||||||||||||||||
| Class I | 15.88 | % | — | — | — | — | 25.84 | % | — | ||||||||||||||||||||
| Class O | — | — | — | — | — | — | 15.68 | % | |||||||||||||||||||||
| Excluding Sales Charge: | |||||||||||||||||||||||||||||
| Class A | 15.44 | % | 27.90 | % | 24.31 | % | — | — | — | — | |||||||||||||||||||
| Class B | 14.59 | % | 26.95 | % | — | 22.65 | % | — | — | — | |||||||||||||||||||
| Class C | 14.57 | % | 26.99 | % | — | — | 22.56 | % | — | — | |||||||||||||||||||
| Class I | 15.88 | % | — | — | — | — | 25.84 | % | — | ||||||||||||||||||||
| Class O | — | — | — | — | — | — | 15.68 | % | |||||||||||||||||||||
S&P/Citigroup World Property Index (4) | 13.93 | % | 27.74 | % | 23.59 | %(5) | 23.89 | % (6) | 27.85 | % (7) | 24.71 | % (8) | 13.93 | %(9) | |||||||||||||||
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/Citigroup World Property Index is an unmanaged market-weighted total return index, which consists of many companies from developed markets whose floats are larger than $100 million and derive more than half of their revenue from property-related activities.
(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.
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Table of Contents
ING Global Value Choice Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by David B. Iben, Portfolio Manager, of Tradewinds Global Investors, LLC(1) — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 30.76% compared to the Morgan Stanley Capital International All Country World IndexSM(2) (“MSCI ACWI IndexSM”) and the Morgan Stanley Capital International World IndexSM(3) (“MSCI World IndexSM”), which returned 24.19% and 20.39%, respectively, for the same period.
Portfolio Specifics: The materials sector, the Fund’s largest sector weighting, was the best performing sector during the period. Among the top contributors to performance for the quarter were gold mining companies Barrick Gold Corporation and Lihir Gold Limited. During the period, the price of gold reached its highest level in 27 years and many of the gold producers benefited as a result. Barrick Gold Corporation is the second largest North American gold producer, the largest gold company in the world by capitalization, and was the Fund’s largest holding in this sector. The Mosaic Company, a producer of phosphate and potash crop nutrients, was another top contributor to performance. The company has benefited from strong domestic and foreign fertilizer industry demand and higher product prices. Industrial sector holding AGCO Corporation, the Fund’s best individual contributor to performance, manufactures and distributes agricultural equipment and related replacement parts. The company has benefited from a global boom in the agricultural industry.
The financial sector was the Fund’s largest detractor from performance during the period, primarily due to continued weakness in the Japanese consumer finance holding Takefuji Corp. The company has experienced significant stock
Country Allocation
price declines due to investor concerns over regulatory changes and legal challenges. We continue to carefully monitor the potential risk/reward profile of the company. The Fund’s information technology holdings also hindered performance. In particular, Korean-based Samsung SDI Co., Ltd. GDR, one of the world’s largest cathode ray tube and plasma display panel manufacturers, suffered during the period due to increased competition and price deterioration of its products. We continue to believe, however, that the company is a quality franchise, with a strong balance sheet and dominant market share. While the materials sector as a whole performed well, not all of the sector’s holdings had positive results. Bowater Incorporated, a producer of coated and specialty papers and newsprint, was among the largest detractors from performance. The paper industry as a whole is suffering from poor supply/demand fundamentals. Canadian-based gold mining company Gabriel Resources’ share price declined significantly in mid-September after the Romanian government temporarily suspended its environmental impact and construction approval process of the company’s 80-percent owned Rosia Montana gold project in Romania.
While the Fund’s investments represented numerous countries from around the world, U.S. investments contributed the most to performance while the Fund’s Japanese holdings detracted the most from performance. The Fund remains heavily overweighted in materials and heavily underweighted in financial sector stocks.
Current Strategy and Outlook: We believe that concerns caused by the U.S. sub-prime mortgage meltdown and softening housing conditions will continue to work themselves out, and as such, markets will continue to be volatile. Excess money from Federal Reserve and European Central Bank credit injections should find their way into investments with a scarcity of supply, such as oil, commodities and gold. As such, we continue to believe that the long-term supply and demand fundamentals for gold companies are compelling. While gold prices reached a 27 year high in September, in real terms, the price of gold as of October 31, 2007, was still less than 50 percent of its 1980 high. We also continue to believe the Fund is well positioned worldwide in other strong business franchises — such as food, agriculture, and basic materials companies — that have the potential to appreciate over the long-term.
Top Ten Holdings*
| Nippon Telegraph & Telephone Corp. ADR | 4.3% |
| Royal Dutch Shell PLC ADR | 4.2% |
| Newmont Mining Corp. | 4.2% |
| Barrick Gold Corp. | 4.1% |
| Anglogold Ashanti Ltd. ADR | 3.7% |
| Centrais Eletricas Brasileiras SA ADR | 3.4% |
| Korea Electric Power Corp. ADR | 3.2% |
| Lihir Gold Ltd. | 3.1% |
| Union Pacific Corp. | 3.0% |
| Chevron Corp. | 2.8% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
(1) Effective February 28, 2007, Tradewinds NWQ Global Investors, LLC changed its name to Tradewinds Global Investors, LLC.
(2) The MSCI ACWI IndexSM is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The MSCI ACWI IndexSM more closely tracks the types of securities in which the Fund invests than the MSCI World IndexSM.
(3) 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.
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.
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Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||
| Since Inception | |||||||||||||||||
| of Class I | |||||||||||||||||
| 1 Year | 5 Year | 10 Year | September 6, 2006 | ||||||||||||||
Including Sales Charge: | |||||||||||||||||
Class A(1) | 23.21 | % | 16.88 | % | 8.63 | % | — | ||||||||||
Class B(2) | 24.91 | % | 17.29 | % | 8.57 | % | — | ||||||||||
Class C(3) | 28.86 | % | 17.51 | % | 8.56 | % | — | ||||||||||
| Class I | 31.48 | % | — | — | 29.02 | % | |||||||||||
| Class Q | 31.13 | % | 18.59 | % | 9.58 | % | — | ||||||||||
Excluding Sales Charge: | |||||||||||||||||
| Class A | 30.76 | % | 18.26 | % | 9.27 | % | — | ||||||||||
| Class B | 29.91 | % | 17.50 | % | 8.57 | % | — | ||||||||||
| Class C | 29.86 | % | 17.51 | % | 8.56 | % | — | ||||||||||
| Class I | 31.48 | % | — | — | 29.02 | % | |||||||||||
| Class Q | 31.13 | % | 18.59 | % | 9.58 | % | — | ||||||||||
MSCI ACWI IndexSM(4) | 24.19 | % | 19.67 | % (6) | 8.84 | % | 25.50 | %(7) | |||||||||
MSCI World IndexSM(5) | 20.39 | % | 18.31 | % | 7.90 | % | 22.15 | %(7) | |||||||||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Global Value Choice 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)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 IndexSM is a free-float adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The MSCI ACWI IndexSM more closely tracks the types of securities in which the Fund invests than the MSCI World IndexSM.
(5)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.
(6)Net return for index is shown from November 1, 2002.
(7)Since inception performance for the indices 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 Disciplined International SmallCap Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Omar Aguilar, Ph.D., Portfolio Manager and Vincent Costa, CFA, Portfolio Manager, both of ING Investment Management Co. — the Sub-Adviser.
Performance: Since the Fund’s inception on December 20, 2006 through October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 20.90%, compared to the Standard and Poor’s Citigroup Extended Market Index World ex-US(1) (“S&P/ Citigroup EMI World ex-US”), which returned 18.71% for the period from January 1, 2007 through October 31, 2007.
Portfolio Specifics: Our research builds structured portfolios of stocks with fundamental characteristics that, in our opinion, will translate into a performance advantage over the benchmark. Our analysis seeks to position the Fund to capitalize on high-quality companies with growing earnings as well as attractive valuations and business momentum.
Sector allocation added value during the period, particularly an underweight position in consumer discretionary companies. Security selection among the financial, industrial and materials
Country Allocation
sectors benefited the Fund; these gains were partially offset by security selection in the utilities sector.
Top contributors included overweight positions in Seoul Securities Co., Ltd., a Korean financial service provider, BWIN Interactive Entertainment (sold), an Austrian provider of online gaming and Italian motorcycle manufacturer Ducati, which rose as profits for the first nine months in 2007 soared. In the industrials sector, names such as Korean Air Lines Co., Ltd., Glidemeister (sold) and Danieli also added to returns.
The worst detractors included overweight positions in Jessops (sold), a UK retail photographic products and services company, which slid as its chairman resigned and the company announced the closing of about 80 stores; and British property fund manager Capital and Regional PLC, which suffered due to negative market sentiment.
Current Strategy and Outlook: The Fund is currently overweight in the financials, consumer staples and materials and underweight in the utilities sector.
Top Ten Holdings
| iShares MSCI EAFE Index Fund | 1.0% |
| Accor SA | 0.7% |
| Holcim Ltd. | 0.7% |
| Union Fenosa SA | 0.6% |
| Swiss Life Holding | 0.5% |
| Compagnie Generale de Geophysique SA | 0.5% |
| Persimmon PLC | 0.5% |
| Swatch Group AG – BR | 0.5% |
| Lagardere SCA | 0.5% |
| Fresenius Medical Care AG & Co. KGaA | 0.5% |
Portfolio holdings are subject to change daily.
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.
12
Table of Contents
| Cumulative Total Returns for the Period Ended October 31, 2007 | |||||
| Since Inception | |||||
| of Classes A, B, C and I | |||||
| December 20, 2006 | |||||
Including Sales Charge: | |||||
Class A(1) | 13.95 | % | |||
Class B(2) | 15.20 | % | |||
Class C(3) | 19.20 | % | |||
| Class I | 21.30 | % | |||
Excluding Sales Charge: | |||||
| Class A | 20.90 | % | |||
| Class B | 20.20 | % | |||
| Class C | 20.20 | % | |||
| Class I | 21.30 | % | |||
S&P/Citigroup EMI World ex-US(4) | 18.71 | %(5) | |||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Disciplined International SmallCap 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% for the since inception return.
(3)Reflects deduction of the Class C deferred sales charge of 1% for the since inception return.
(4)The S&P/Citigroup EMI World ex-US is an unmanaged extended market index of the world market excluding U.S.; extended meaning small capitalization stock universe or bottom 20% of available capital of each country.
(5)Since inception performance for the index is shown from January 1, 2007.
13
Table of Contents
ING Emerging Countries Fund (the “Fund”) seeks maximum long-term capital appreciation. The Fund is managed by Brandes Investment Partners, L.P. (“Brandes”), the Sub-Adviser. Brandes’ Emerging Markets Investment Committee is responsible for making the day-to-day investment decisions for the Fund. Alphonse Chan, CFA, Portfolio Manager, Christopher Garrett, CFA, Institutional Portfolio Manager, Douglas Edman, CFA, Director — Investments, Gerardo Zamorano, CFA, Senior Analyst, Greg Rippel, CFA, Senior Analyst, and Steven Leonard, CFA, Senior Analyst are the six voting members of Brandes’ Emerging Markets Investment Committee.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 41.93% compared to the Morgan Stanley Capital International Emerging Markets IndexSM(1) (“MSCI EM IndexSM”), which returned 67.84% for the same period.
Portfolio Specifics: For the year ended October 31, 2007, the Fund benefited most in absolute terms from advancing share prices for holdings in the diversified telecommunication services, chemicals, and wireless telecommunication services industries. Key contributors from these industries included Brasil Telecom Participacoes SA ADR (Brazil — diversified telecommunication services), LG Chemical Ltd. (South Korea — chemicals), and Vivo Participações SA ADR (Brazil — wireless telecommunication services). The Fund’s positions in the electric utilities and automobiles industries, such as Manila Electric (Philippines — electric utilities), Eletrobras (Brazil — electric utilities), and Brilliance China Auto Holdings (China — automobiles), also generally delivered favorable results. Gains for select holdings outside of these industries, such as AFP Provida (Chile — capital markets) and First Pacific (Hong Kong — diversified financial services), also contributed to positive performance. Declines for Taro Pharmaceutical Industries (Israel — pharmaceuticals) and Daeduck Electronics Co., Ltd. (South Korea — electronic equipment & instruments) proved to be the largest detractors to Fund performance during the period.
Among countries, securities based in Brazil, South Korea, and China tended to deliver the greatest gains during the period. Top performers from these regions included Cia Saneamento Basico do Estado de Sao Paulo (Brazil — water utilities), LG Electronics (South Korea — household durables), and Weiqiao Textile Co. (China — textiles, apparels, & luxury goods). Positions based in Taiwan, Israel, and
Country Allocation
Hong Kong also tended to register gains, while South African-based JD Group Ltd. (South Africa — specialty retail) tended to be the largest detractor from a country perspective.
On a relative basis, the Fund underperformed the MSCI Emerging Markets Index. A combination of the Fund’s overweight to holdings in the wireless telecommunication services and diversified telecommunication services industries, as well as poor stock selection within these industries, drove relative results. Stock selection in the industrials and financial sectors also had a negative effect on relative performance, while an underweight to positions in the metals & mining industry and a lack of exposure to securities in the oil, gas, & consumable fuels industry also proved unfavorable.
As a reminder, the Fund’s industry exposure is a residual of our value-driven investment process, which focuses on company-by-company analysis seeking to identify undervalued securities. It should not be surprising that, as dedicated value managers following a disciplined strategy, we are not currently finding value in many companies in these commodity-based industries. During this period we held one security in the metals & mining industry, Posco (South Korea), which returned more than 28% for the period.
Our philosophy remains the same, both during periods of relative outperformance and underperformance. We believe the best opportunities for capital appreciation come from finding securities trading at discounts to our estimate of their true values. Conversely, we firmly believe focusing on short-term relative performance can distract investors from focusing on a disciplined investment strategy.
During the period, our company-specific analysis dictated a number of changes to the Fund composition. We sold positions such as LG Chemical Ltd. (South Korea — chemicals), Manila Electric (Philippines — electric utilities), and Brilliance China Auto Holdings (China — automobiles) as share price appreciation pushed their market prices toward our estimates of their fair values. We also purchased a number of new positions, including Sinopec Yizheng Chemical Fibre (China — chemicals), Koor Industries (Israel — industrials), and Bangkok Bank PCL (Thailand — commercial banking), at prices we consider attractive.
Current Strategy and Outlook: During the reporting period, the Fund’s country and industry exposures shifted slightly due to stock-specific buying and selling as well as changes in the prices of holdings. For example, new purchases increased exposure to the food products and specialty retail industries, while the sale of Kumho Industrial (South Korea — auto components) and a pareback of Kumho Tire Co., Inc. (South Korea — auto components) reduced the Fund’s exposure to the auto components industry. Among countries, the Fund’s exposure to Thailand and Brazil increased as a result of new purchases and share price appreciation, while sales of select issues in Taiwan reduced exposure there. (Keep in mind that the Fund’s weightings for industries and countries are not the product of “top-down” forecasts or opinions, but merely stem from our company-by-company search for compelling investment opportunities in markets around the world.)
Top Ten Holdings*
| SK Telecom Co., Ltd. ADR | 3.6% |
| Weiqiao Textile Co. | 3.6% |
| Braskem SA | 3.4% |
| Banco Latinoamericano de Exportaciones SA | 2.9% |
| China Motor Corp. | 2.8% |
| First Pacific Co. | 2.8% |
| Samsung Electronics Co., Ltd. | 2.8% |
| KT Corp. | 2.8% |
| Jd Group Ltd. | 2.6% |
| AFP Provida SA ADR | 2.6% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
Overall, while we offer no predictions regarding the short-term direction of equities in emerging markets, we believe the Fund remains well positioned to deliver favorable long-term results. We believe that all holdings remain undervalued, and we expect them to realize appreciation as the market recognizes their true worth.
(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.
14
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||
| Since Inception | |||||||||||||||||
| of Class I | |||||||||||||||||
| 1 Year | 5 Year | 10 Year | December 21, 2005 | ||||||||||||||
Including Sales Charge: | |||||||||||||||||
Class A(1) | 33.76 | % | 26.34 | % | 9.63 | % | — | ||||||||||
Class B(2) | 35.85 | % | 26.81 | % | 9.66 | % | — | ||||||||||
Class C(3) | 39.82 | % | 26.94 | % | 9.52 | % | — | ||||||||||
| Class I | 42.41 | % | — | — | 31.25 | % | |||||||||||
| Class Q | 42.05 | % | 28.06 | % | 10.53 | % | — | ||||||||||
Excluding Sales Charge: | |||||||||||||||||
| Class A | 41.93 | % | 27.85 | % | 10.28 | % | — | ||||||||||
| Class B | 40.85 | % | 26.96 | % | 9.66 | % | — | ||||||||||
| Class C | 40.82 | % | 26.94 | % | 9.52 | % | — | ||||||||||
| Class I | 42.41 | % | — | — | 31.25 | % | |||||||||||
| Class Q | 42.05 | % | 28.06 | % | 10.53 | % | — | ||||||||||
MSCI EM IndexSM(4) | 67.84 | % | 39.86 | % (5) | 15.18 | % | 44.99 | %(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)Net return for index is shown from November 1, 2002.
(6)Since inception performance for index is shown from January 1, 2006.
Prior to March 1, 2005, the Fund was advised by a different sub-adviser.
15
Table of Contents
ING Foreign Fund (the “Fund”) seeks long-term growth of capital. The Fund is managed by Rudolph-Riad Younes, CFA, Senior Vice President and Head of International Equity and Richard Pell, Senior Vice President and Chief Investment Officer, both of Julius Baer Investment Management LLC — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 31.32% compared to the Morgan Stanley Capital International All Country World ex-US Index(1) (“MSCI ACWI ex US Index”) and the Morgan Stanley Capital International — Europe, Australasia and Far East® Index(2) (“MSCI EAFE® Index”) which returned 32.43% and 24.91%, respectively, for the same period.
Portfolio Specifics: During the period, international equities exhibited strong results, particularly within emerging markets, with Asia topping the charts amid continued strong economic growth. Commodity oriented markets were also solid performers as demand for raw materials continued at a robust pace. The notable exception to the strong equity environment was once again Japan, which achieved only low single digit returns for investors.
Amid this environment, we modestly underperformed our new benchmark, the MSCI ACWI ex US Index, which was adopted on March 1, 2007. This benchmark change coincided with our ability to operate within a broadened range for emerging markets of 0-35%. The underperformance relative to this benchmark was the result of several factors. From a geographic perspective, our underweight to Asia, detracted from results as did our underweight to commodity-oriented countries such as Brazil, Canada, Australia and South Africa. However, positively supporting results was our underweighted stance to equities in Japan and the United Kingdom. Our overweight to and stock selection in India contributed to results with the position in the State Bank of India Ltd. warrants particularly strong. Within Central and Eastern Europe we were overweight in Poland, the Czech Republic and Russia which proved beneficial. Specific contributors included Powszechna Kasa Oszczednosci Bank Polski SA and Bank Polska Kasa Opieki
Country Allocation
(Poland), Komercni Banka AS (Czech Republic) and Norilsk Nickel Mining and Sberbank (Russia), although shares of OJSC Rosneft GDRs (Russia) underperformed relative to the index, negatively impacting results within the energy sector. Also in the region, Bank of Cyprus Public Co., Ltd. had very strong performance.
From a sector perspective, our underweight to materials dragged down results given rising commodities. While our overweight to industrials was positive, stock selection negated this effect due to several underperformers. Melco International Development (Hong Kong), Marfin Investment Group Holdings (Greece) and AG Frankfurt Airport Services Worldwide (Germany) underperformed the index. On a positive note, our decision to underweight UK financials along with strong performance from several emerging market banks led us to outperform within the sector overall. This positioning more than made up for poor performance from several European financials, including Swedbank AB (Sweden), Immoeast Immobilien Anlagen AG (Austria) as well as the position held in KKR Private Equity Investors LP. One bright spot in Continental Europe was consumer-oriented stocks in Switzerland, including Nestle SA and Swatch Group AG.
Current Strategy and Outlook: We are toward the upper end of the range for emerging markets. Central and Eastern Europe including Russia remain an important component of the strategy. In our opinion, economic growth within the region has been driven more by domestic demand forces rather than U.S. consumption growth, providing diversification benefits. Select opportunities in Asia are also represented. In particular, we believe India, offers an industry mix more focused on services along with better corporate governance than in China. We believe South Korea and Taiwan have become more like developed markets, although they continue to be classified as emerging. We have uncovered opportunities across several sectors which are represented in the strategy. In our opinion, commodity oriented markets such as Brazil, South Africa, Canada and Australia continue to be driven by strong demand and we have increased our exposure.
We remain heavily underweight Japanese equities. In our opinion, lack of reforms, poor corporate governance and extended valuations leave little incentive to increase exposure there. The UK is also underrepresented, given our avoidance of UK banks.
| OTP Bank Nyrt | 2.8% |
| Komercni Banka AS | 2.1% |
| iShares MSCI Canada Index Fund | 2.0% |
| Hang Seng Investment Index Funds Series-H-Share Index ETF | 1.6% |
| OAO Gazprom ADR | 1.6% |
| Nestle SA | 1.5% |
| OMV AG | 1.4% |
| State Bank of India Ltd. | 1.2% |
| BP PLC | 1.2% |
| Total SA | 1.2% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
Within Continental Europe, we continue to find transportation infrastructure such as airports to be compelling businesses with attractive franchises (restaurants, duty free shops, etc.). Construction and cement companies are also well positioned. Luxury goods and spirits companies benefit from demand from emerging markets.
(2) The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or fees 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.
16
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||
| 1 Year | July 1, 2003 | July 8, 2003 | July 7, 2003 | September 8, 2003 | July 10, 2003 | ||||||||||||||||||||
Including Sales Charge: | |||||||||||||||||||||||||
Class A(1) | 23.78 | % | 22.23 | % | — | — | — | — | |||||||||||||||||
Class B(2) | 25.35 | % | — | 22.07 | % | — | — | — | |||||||||||||||||
Class C(3) | 29.30 | % | — | — | 22.37 | % | — | — | |||||||||||||||||
| Class I | 31.76 | % | — | — | — | 23.75 | % | — | |||||||||||||||||
| Class Q | 31.45 | % | — | — | — | — | 23.72 | % | |||||||||||||||||
Excluding Sales Charge: | |||||||||||||||||||||||||
| Class A | 31.32 | % | 23.91 | % | — | — | — | — | |||||||||||||||||
| Class B | 30.35 | % | — | 22.30 | % | — | — | — | |||||||||||||||||
| Class C | 30.30 | % | — | — | 22.37 | % | — | — | |||||||||||||||||
| Class I | 31.76 | % | — | — | — | 23.75 | % | — | |||||||||||||||||
| Class Q | 31.45 | % | — | — | — | — | 23.72 | % | |||||||||||||||||
MSCI ACWI ex US (4) | 32.43 | % | 26.98 | % | 26.98 | %(6) | 26.98 | %(6) | 26.51 | %(7) | 26.98 | %(6) | |||||||||||||
MSCI EAFE® IndexSM(5) | 24.91 | % | 24.31 | % | 24.31 | %(6) | 24.31 | %(6) | 23.97 | %(7) | 24.31 | %(6) | |||||||||||||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Foreign 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 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 2%, 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 USSM 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. The MSCI ACWI ex US Index more closely tracks the types of securities in which the fund invests than the MSCI EAFE® Index.
(5)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.
(6)Since inception performance for indices is shown from July 1, 2003.
(7)Since inception performance for indices is shown from September 1, 2003.
17
Table of Contents
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, Portfolio Managers of ING Investment Management Asia/ Pacific (Hong Kong) Limited — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 96.41%, compared to Morgan Stanley Capital International (“MSCI”) All Countries Golden Dragon Index(1) which returned 84.11% for the same period. The MSCI All Countries Golden Dragon Index is an aggregate of the MSCI Hong Kong Index, the MSCI China Free Index and the MSCI Taiwan Index.
Portfolio Specifics: In China, news about the Qualified Domestic Institutional Investor (“QDII”) scheme continued to excite the market; expected investment flows from domestic Chinese investors into Hong Kong listed Chinese stocks helped push the benchmark index to new highs. H shares and red-chip stocks listed in Hong Kong went up due to their cheaper valuations compared to their A share counterparts in the local Chinese market. China recently has experienced heightened inflation risk from fast-rising food prices; however, the central bank has moved preemptively to increase interest rates and bank reserves requirement.
Hong Kong has been performing roughly in line with the regional index thanks to its property sector, which performed well on expectations of declining U.S. interest rates. Taiwan was lackluster compared with the rest of the region as investors worried about Taiwanese banks’ exposure to U.S. sub-prime collateralized debt obligations. Concerns over the U.S. economy also hurt sentiment in the technology sector, which is export driven.
An overweight position in Chinese real estate developers via China Overseas Land and Investment Ltd. and Guangzhou R&F Properties Co., Ltd. was the biggest contributor to performance. Overweights in selected H shares, which traded at a
Country Allocation
significant discount to their A share counterparts, helped performance as the shares narrowed the discount. Examples include China Shipping Development Co., Ltd., Dongfang Electrical Machinery Co., Ltd. and Jianxi Copper Properties Co., Ltd. Stock selection in the Hong Kong financial sector also helped performance.
In Taiwan, underweights in financials and information technology (“IT”) hardware, two of the largest sectors, contributed significantly. An overweight in the Taiwan petrochemicals sector via Nan Ya Plastics Corp. also added value as the sector benefited from growing Chinese demand. Finally, our holdings in Shanghai Pudong Development Bank and China Merchants Bank Co., Ltd, both A shares, contributed to performance. These positions have been closed and the Fund does not have any direct A share exposure currently.
Underweights in selected energy stocks in China, particularly CNOOC Ltd., detracted value as energy and commodity prices strengthened. Also, underweights in certain financial stocks, most notably Ping An Insurance and ICBC, detracted from results as those stocks outperformed due to liquidity inflows in anticipation of the QDII system. That underperformance was mitigated, however, by positions in Petrochina Co., Ltd, China Life Insurance Co., Ltd. and China Construction Bank.
Current Outlook and Strategy: Chinese stocks listed in Hong Kong are likely to see further re-rating as a result of potential investment flows from Chinese investors. China announced another set of strong macroeconomic figures in August and the renminbi continues to strengthen gradually. International investors are concerned about the rising A share market and the possibility of a major correction. The U.S. sub-prime mortgage crisis has also dented sentiment. China, being an emerging market, will not be immune to a general deterioration of investor sentiment or increased risk aversion. Nevertheless, we are maintaining a positive bias towards the Chinese market, as we believe China’s macroeconomic outlook is still solid. Corporate earnings growth is faster than previously expected and core inflation is still under control.
In Hong Kong, property prices are rising and domestic consumption is strong. Further U.S. interest rate cuts might boost local market sentiment. In Taiwan, the continuous struggle between President Chen and the opposition parties is dampening market sentiment. We believe Taiwan’s long-term outlook remains positive if the political deadlock can be resolved. Sectors such as basic materials and petrochemicals are likely to perform better thanks to rising demand from China. In general, Taiwan is still heavily exposed to the IT sector. The market outlook is still not favorable and we are staying underweight.
Top Ten Holdings
| China Mobile Ltd. | 9.0% |
| PetroChina Co., Ltd. | 5.6% |
| China Overseas Land & Investment Ltd. | 4.7% |
| China Life Insurance Co., Ltd. | 4.3% |
| MediaTek, Inc. | 3.8% |
| BOC Hong Kong Holdings Ltd. | 3.5% |
| Nan Ya Plastics Corp. | 3.4% |
| Cheung Kong Holdings Ltd. | 3.4% |
| HON HAI Precision Industry Co., Ltd. | 3.1% |
| Hong Kong Exchanges and Clearing Ltd. | 2.8% |
Portfolio holdings are subject to change daily.
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.
18
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||
| Since Inception | Since Inception | Since Inception | Since Inception | ||||||||||||||||||
| of Class A | of Class B | of Class C | of Class I | ||||||||||||||||||
| 1 Year | December 21, 2005 | January 6, 2006 | January 11, 2006 | May 8, 2006 | |||||||||||||||||
Including Sales Charge: | |||||||||||||||||||||
Class A(1) | 85.15 | % | 56.92 | % | — | — | — | ||||||||||||||
Class B(2) | 89.92 | % | — | 56.04 | % | — | — | ||||||||||||||
Class C(3) | 93.75 | % | — | — | 57.53 | % | — | ||||||||||||||
| Class I | 96.81 | % | — | — | — | 55.07 | % | ||||||||||||||
Excluding Sales Charge: | |||||||||||||||||||||
| Class A | 96.41 | % | 61.99 | % | — | — | — | ||||||||||||||
| Class B | 94.92 | % | — | 57.56 | % | — | — | ||||||||||||||
| Class C | 94.75 | % | — | — | 57.53 | % | — | ||||||||||||||
| Class I | 96.81 | % | — | — | — | 55.07 | % | ||||||||||||||
MSCI All Countries Golden Dragon Index(4) | 84.11 | % | 53.33 | %(5) | 53.33 | %(5) | 53.33 | %(5) | 52.29 | %(6) | |||||||||||
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 4%, 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.
(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.
19
Table of Contents
ING Index Plus International Equity Fund (the “Fund”) seeks to outperform the total return performance of the Morgan Stanley Capital International — Europe, Australasia and Far East® Index(1) (“MSCI EAFE® Index”) while maintaining a market level of risk. The Fund is managed by Carl Ghielen, Portfolio Manager and Martin Jansen, Portfolio Manager, both of ING Investment Management Advisors B.V. — the Sub Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 22.98% compared to the MSCI EAFE® Index, which returned 24.91% for the same period.
Portfolio Specifics: By design, the Fund maintains approximate benchmark weights of the countries/regions, economic sectors and industries constituting the MSCI EAFE® Index and is expected to track the benchmark relatively closely. The Fund seeks to add value to the MSCI EAFE® benchmark through bottom-up security selection on the basis of customized sector models.
Stock-specific risk is substantially controlled by the large number of securities in the portfolio (between 300 and 400). As a first step, we include the best ranked 200 stocks across countries, sectors and industries. To ensure that the Fund maintains appropriate index weights and an index-like profile, we add an additional 100–200 of the next most attractive securities. The Fund is rebalanced monthly.
Country Allocation
For the fiscal year, the Fund’s underperformance versus the benchmark was attributable mostly to security selection. The Fund performed strongly through June. After that, our models, especially in the financial sector, were wrongly positioned against a backdrop of rising volatility as the U.S.-induced sub-prime mortgage crisis escalated.
The predictive power of the individual factors included in each of the international sector models for a particular reporting period substantially determines the stock selection result in each sector and country/region. The model proved effective at selecting stocks in Continental Europe and Asia-Pacific ex-Japan, but lost value in Japan and the United Kingdom. For this reporting period, our positioning in the financials had the largest negative impact, due largely to an adverse ranking outcome of earnings/price factors used in the sector model. On the positive side, the EBITDA/price factor in the materials sector model proved especially powerful.
Japanese financial stocks Sumitomo Mitsui Financial Group, Inc. and Mizuho Financial Group, Inc. were notable detractors at the security level. The strong selection result in materials was largely attributable to our holdings of steel producers ThyssenKrupp AG and ArcelorMittal and Australian mining conglomerate, BHP Billiton PLC.
Current Strategy and Outlook: Stock selection flows from the sector/industry ranking models. The Fund’s portfolio construction and risk control disciplines seek to limit the Fund’s characteristics within an acceptable band around the benchmark. Our most attractively ranked stocks may have overweights of up to 0.75%, while the maximum allowable underweight is 0.50%. Within this context, the Fund currently
| Telefonica SA | 2.0% |
| Nokia OYJ | 2.0% |
| Volkswagen AG | 1.6% |
| Royal Dutch Shell PLC – Class A | 1.6% |
| BHP Billiton PLC | 1.6% |
| iShares MSCI EAFE Index Fund | 1.4% |
| UniCredito Italiano S.p.A. | 1.4% |
| Suez SA | 1.4% |
| Credit Suisse Group | 1.4% |
| Deutsche Bank AG | 1.3% |
Portfolio holdings are subject to change daily.
has a modest tilt towards lower valuation and smaller capitalization stocks and has a resultant modest focus on stocks linked primarily to local economies. The current portfolio of stocks generated an historic earnings growth similar to the index, and carries a dividend yield approximating that of the 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.
20
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||
| Since Inception | Since Inception | ||||||||||||
| of Classes A and I | of Classes B and C | ||||||||||||
| 1 Year | December 21, 2005 | January 12, 2006 | |||||||||||
Including Sales Charge: | |||||||||||||
Class A(1) | 15.93 | % | 17.69 | % | — | ||||||||
Class B(2) | 17.85 | % | — | 17.16 | % | ||||||||
Class C(3) | 21.81 | % | — | 18.97 | % | ||||||||
| Class I | 24.14 | % | 22.22 | % | — | ||||||||
Excluding Sales Charge: | |||||||||||||
| Class A | 22.98 | % | 21.49 | % | — | ||||||||
| Class B | 22.85 | % | — | 19.10 | % | ||||||||
| Class C | 22.81 | % | — | 18.97 | % | ||||||||
| Class I | 24.14 | % | 22.22 | % | — | ||||||||
MSCI EAFE® Index(4) | 24.91 | % | 24.10 | %(5) | 24.10 | %(5) | |||||||
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 4%, 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.
21
Table of Contents
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, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 33.89% compared to the Morgan Stanley Capital International All Country World ex US Index(1) (“MSCI ACWI ex US IndexSM” or the “Index”), which returned 32.43% for the same period.
Portfolio Specifics: The Fund outperformed the Index during the reporting period, as growth style investing started to outperform value style investing during 2007. The majority of the outperformance came from good stock selection across several sectors and regions.
From a sector perspective, the largest contribution to positive return came from stock selection within the industrials sector. Vestas Wind Systems A/ S (“Vestas”), a global leader in wind turbine and blade technology, was the best performing stock in the Fund over the past year, as well as the largest contributor to return. Vestas is benefiting from a political and economic environment which is very favorable to renewable forms of energy. Also within the industrials sector, NGK Insulators Ltd. posted very strong gains due to a significant upgrade in the firm’s earning power from their diesel particulate filters and NAS battery technology which is used in the wind power industry.
On the back of rising oil prices, energy stocks performed well over the past year and the Fund’s security selection within the sector added
Country Allocation
significantly to the outperformance. Saipem S.p.A., which specializes in offshore oil rigs, benefited from increased opportunities in the offshore energy business, as well as from synergies that resulted from their most recent acquisition.
Information technology was the largest detractor from a sector perspective. Foxconn Technology Co., Ltd. (“Foxconn”) detracted from performance due to declining demand in Motorola handsets, which resulted in slowing order flow for Foxconn. Samsung Electronics GDR also added to the underperformance, as a supply glut of dynamic random access memory (“DRAM”) impacted the firm’s profitability.
From a regional perspective, Europe was the largest contributor to positive returns due primarily to strong security selection. Millicom International Cellular SA and Telefonica SA contributed to the strong performance in Europe, as telecommunications services stocks outperformed the broad market.
The largest detractor from a regional perspective was the emerging markets region as the Fund’s focus on high quality large-cap stocks in the region did not reward investors as much as the smaller-cap, high beta stocks.
Current Strategy and Outlook: As the U.S. sub-prime issue caused fear of contagion into international capital markets and investors fled to perceived safe havens, corporate spreads widened. Consequently, central banks around the world injected liquidity into the financial system to alleviate a potential credit crisis. We believe we are well positioned to weather any further shocks to the global credit markets, and continue to feel the environment remains constructive for global growth and international equity market returns.
We continue to actively pursue a disciplined, consistent approach that seeks to select stocks from quality companies with strong secular growth profiles and compelling competitive advantages.
We believe that the current market environment is conducive to a rotation into traditional growth style investing. Indeed, our focus on high quality growth companies provided satisfactory returns in a period that at times exhibited extreme volatility.
Top Ten Holdings
| Esprit Holdings Ltd. | 2.3% |
| Millicom International Cellular SA | 2.2% |
| Cia Vale do Rio Doce ADR | 2.1% |
| Vestas Wind Systems A/S | 2.1% |
| ABB Ltd. | 2.0% |
| Manulife Financial Corp. | 1.9% |
| Saipem S.p.A. | 1.9% |
| Prudential PLC | 1.9% |
| Iliad SA | 1.9% |
| Telefonica SA | 1.8% |
Portfolio holdings are subject to change daily.
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.
22
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||
| Since Inception | Since Inception | Since Inception | |||||||||||||||
| of Classes A and I | of Class B | of Class C | |||||||||||||||
| 1 Year | December 21, 2005 | January 9, 2006 | January 24, 2006 | ||||||||||||||
Including Sales Charge: | |||||||||||||||||
Class A(1) | 26.24 | % | 21.53 | % | — | — | |||||||||||
Class B(2) | 27.67 | % | — | 20.57 | % | — | |||||||||||
Class C(3) | 31.45 | % | — | — | 24.00 | % | |||||||||||
| Class I | 34.14 | % | 25.82 | % | — | — | |||||||||||
Excluding Sales Charge: | |||||||||||||||||
| Class A | 33.89 | % | 25.46 | % | — | — | |||||||||||
| Class B | 32.67 | % | — | 22.46 | % | — | |||||||||||
| Class C | 32.45 | % | — | — | 24.00 | % | |||||||||||
| Class I | 34.14 | % | 25.82 | % | — | — | |||||||||||
MSCI ACWI ex US IndexSM(4) | 32.43 | % | 27.90 | %(5) | 27.90 | %(5) | 23.53 | %(6) | |||||||||
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 4%, 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 IndexSM 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.
23
Table of Contents
ING International Equity Dividend Fund (the ”Fund”) seeks growth of capital with dividend income as a secondary consideration. The Fund is managed by Nicolas Simar, Head of Value/ High Dividend and Moudy El Kohdr, Senior Investment Manager Equities, both of ING Investment Management Advisors B.V. — the Sub-Adviser.
Performance: Since inception on June 28, 2007, through October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 5.70% compared to the Morgan Stanley Capital International World ex US IndexSM(1) (“MSCI World ex US IndexSM“) which returned 7.18% for the same period.
Portfolio Specifics: Overweights in energy and telecommunications benefited the Fund. The Fund’s positioning in ex-U.S. financials helped, as we avoided direct exposure to the sub-prime crisis. Our two strongest financial contributors were ABN AMRO (sold), which benefited from the bidding war between the Royal Bank of Scotland Group PLC led consortium and Barclays, and DNB NOR ASA (1.5%), which rose as the energy sector flourished. (The bank does a significant amount of business with oil companies). Also, the Norwegian economy was stellar.
In energy, our two best performers were PetroChina Co., Ltd. (sold) and Petroleo Brasileiro SA ADR (1.2%), up 71% and 59%, respectively. PetroChina Co., Ltd. and Petrol Brasileiros SA ADR rose as both started with a low reserve replacement ratio and this increased substantially
Country Allocation
along with earnings. PetroChina Co., Ltd. rose strongly in September 2007 as the company will be listed on the Shanghai exchange. At present, A-class shares are listed only on the Hong Kong exchange. The potential mass influx of “new investors” pushed the stock north. The stock thus reached our dividend threshold and we sold it in September. Petroleo Brasileiro ADR SA benefited from rising international oil prices and its emerging market status.
Overall, the two best performing stocks were Petrol Brasileiros SA ADR and DNB NOR ASA.
We lost a little performance due to our underweight in materials. The major gainers were the miners and metals, Rio Tinto, BHP Ltd., BHP PLC and Arcelor, which the Fund does not hold. Our gains in Fording Canadian Coal Trust (sold) and Rexam PLC (1.6%) were erased due to our position in UPM-Kymmene OYJ (1.2%). The company issued two successive profit warnings in the second and third quarters, citing the U.S. dollar’s depreciation as a cause of eroding earnings, a shutdown of a Canadian mill and a write down on the value of its magazine paper division.
We are overweight in utilities and despite some good stocks, the benchmark’s basket performed better. We had no stocks that lost performance; our strongest gainers were Scottish & Southern Energy PLC (1.5%), Enel S.p.A. (1.8%) and Terna S.p.A. (1.5%).
The Fund’s two worst performing stocks were Precision Drilling Trust (1.2%) and Tate & Lyle PLC (1.5%). The former performed in line with the market until July when it announced the closure of one-fifth of its rigs and future earnings estimates were downgraded. The latter issued three profit warnings in 2007 as the company struggled with a lower than expected sales of its sweeteners, the weakening U.S. dollar and an oversupply of sugar in the European market. On its third profit warning management lost its credibility and the stock fell 28%.
Top Ten Holdings
| Royal Bank of Scotland Group PLC | 1.8% |
| Royal Dutch Shell PLC | 1.8% |
| ENI S.p.A. | 1.8% |
| BP PLC | 1.8% |
| UniCredito Italiano S.p.A. | 1.8% |
| Enel S.p.A. | 1.8% |
| Intesa Sanpaolo S.p.A. | 1.8% |
| AstraZeneca PLC | 1.5% |
| Enerplus Resources Fund | 1.5% |
| GlaxoSmithKline PLC | 1.5% |
Portfolio holdings are subject to change daily.
Current Strategy and Outlook: The outlook for the strategy remains positive. In our opinion, investments in defensive names will give the strategy downside protection and lower volatility, which may benefit the Fund going forward. Regardless of the scenario, the Fund will look for sectors or individual stocks to exploit temporary under valuations that often take place.
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.
24
Table of Contents
| Cumulative Total Returns for the Period Ended October 31, 2007 | |||||
| Since Inception | |||||
| of Classes A, B, C and I | |||||
| June 28, 2007 | |||||
Including Sales Charge: | |||||
Class A(1) | (0.38 | )% | |||
Class B(2) | 0.50 | % | |||
Class C(3) | 4.50 | % | |||
| Class I | 5.80 | % | |||
Excluding Sales Charge: | |||||
| Class A | 5.70 | % | |||
| Class B | 5.50 | % | |||
| Class C | 5.50 | % | |||
| Class I | 5.80 | % | |||
MSCI World ex US IndexSM(4) | 7.18 | %(5) | |||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International 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.
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% for the since inception return.
(3)Reflects deduction of the Class C deferred sales charge of 1% for the since inception return.
(4)The MSCI World ex US IndexSM is an unmanaged index that comprises the entire developed world less the United States. The designation of a country as developed arises primarily as a measurement of GDP per capita.
(5)Since inception performance for the index is shown from July 1, 2007.
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Table of Contents
ING International Growth Opportunities Fund(1) (the “Fund”) seeks long-term growth of capital through investment in equity securities and equity equivalents of companies outside the U.S. The Fund is managed by Uri Landesman, Senior Vice President and Head of International Equity, Portfolio Manager of ING Investment Management Co. — Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 30.37% compared to the Morgan Stanley Capital International — Europe, Australasia and Far East® Growth IndexSM(2) (“MSCI EAFE Growth IndexSM”) and the Morgan Stanley Capital International — Europe, Australasia and Far East® Index(3) (“MSCI EAFE® Index”) which returned 28.52% and 24.91%, respectively for the same period.
Portfolio Specifics: In our opinion, international markets generally proved resilient in the face of profound volatility. Global markets suffered material downturns in February, stemming from a warning by the Chinese government and again in late July as a result of the escalating U.S. sub-prime mortgage deterioration. However, a weak dollar coupled with a third quarter rate cut by the U.S. Federal Reserve helped bolster international returns during 2007.
Security selection bolstered Fund performance. Selection was particularly beneficial in financials and industrials. Our decision to underweight healthcare also added value, though security selection detracted. At the regional level, the Fund’s exposure to non-benchmark emerging markets and North America contributed. An underweight to the relatively weak Japan region added value.
Country Allocation
The most significant detractor over the period was security selection within information technology, followed by materials and consumer staples. The Fund’s overweight in the depressed financial sector was among the performance detractors. Our
Agricultural chemical and seed provider, Monsanto Co., saw shares appreciate with rising demand for corn for ethanol production. Anglo American PLC, a UK-based global mining company, rose in the wake of rising metal and commodity prices. Hong Kong based property developer and investor New World Development Co. benefited from strengthening Asian economies and low interest rates, which helped fuel the Hong Kong property market.
ORIX Corp., a Japanese financial services company, was hurt by lower profits. Japanese internet broker Monex Beans Holdings, Inc. weakened after reporting lower net income (profit) due to consumers shying away from stock trading. Wolseley PLC, a UK based distributor of plumbing and heating supplies, reacted negatively in the wake of slowing sales in the United States, which was directly attributed to the housing recession.
Current Strategy and Outlook: We believe the outlook for international markets has improved since late August as inflationary pressures have abated. Consequently, we are maintaining our overweight exposure to emerging markets. We continue to maintain underweight exposures to the utilities, healthcare and telecommunications sectors. Currently, we are overweight in both information technology and the materials. In our opinion, major risk factors include a potential slowdown of global growth, stemming from tightening credit conditions related to the U.S. led housing recession.
Top Ten Holdings*
| Anglo American PLC | 4.0% |
| Diageo PLC | 2.9% |
| Li & Fung Ltd. | 2.8% |
| Reckitt Benckiser PLC | 2.8% |
| ARM Holdings PLC | 2.8% |
| New World Development Ltd. | 2.6% |
| International Power PLC | 2.6% |
| ABB Ltd. | 2.4% |
| Xstrata PLC | 2.3% |
| ORIX Corp. | 2.3% |
| * | Excludes short-term investments related to ING Institutional Prime Money Market Fund and securities lending collateral. |
Portfolio holdings are subject to change daily.
(2) The MSCI EAFE Growth IndexSM is an unmanaged index that measures the performance in 20 countries within Europe, Australasia and the Far East with a greater-than-average growth orientation.
(3) 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 fees 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.
26
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||||||||||
| Since Inception | Since Inception | Since Inception | Since Inception | ||||||||||||||||||||||||||
| of Class B | of Class C | of Class I | of Class Q | ||||||||||||||||||||||||||
| 1 Year | 5 Year | 10 Year | August 22, 2000 | September 15, 2000 | January 15, 2002 | February 26, 2001 | |||||||||||||||||||||||
Including Sales Charge: | |||||||||||||||||||||||||||||
Class A(1) | 22.83 | % | 18.83 | % | 9.68 | % | — | — | — | — | |||||||||||||||||||
Class B(2) | 24.42 | % | 19.00 | % | — | 5.57 | % | — | — | — | |||||||||||||||||||
Class C(3) | 28.46 | % | 19.19 | % | — | — | 6.38 | % | — | — | |||||||||||||||||||
| Class I | 31.02 | % | 20.60 | % | — | — | — | 14.43 | % | — | |||||||||||||||||||
| Class Q | 30.55 | % | 20.33 | % | — | — | — | — | 9.17 | % | |||||||||||||||||||
Excluding Sales Charge: | |||||||||||||||||||||||||||||
| �� | Class A | 30.37 | % | 20.24 | % | 10.33 | % | — | — | — | — | ||||||||||||||||||
| Class B | 29.42 | % | 19.19 | % | — | 5.57 | % | — | — | — | |||||||||||||||||||
| Class C | 29.46 | % | 19.19 | % | — | — | 6.38 | % | — | — | |||||||||||||||||||
| Class I | 31.02 | % | 20.60 | % | — | — | — | 14.43 | % | — | |||||||||||||||||||
| Class Q | 30.55 | % | 20.33 | % | — | — | — | — | 9.17 | % | |||||||||||||||||||
MSCI EAFE Growth IndexSM(4) | 28.52 | % | 21.01 | % | 7.03 | % | 4.94 | %(6) | 4.94 | %(6) | 14.17 | %(7) | 9.43 | %(8) | |||||||||||||||
MSCI EAFE® Index(5) | 24.91 | % | 23.21 | % | 9.26 | % | 7.85 | %(6) | 7.85 | %(6) | 15.88 | %(7) | 11.02 | %(8) | |||||||||||||||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International Growth Opportunities 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)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 Growth IndexSM is an unmanaged index that measures the performance in 20 countries within Europe, Australasia and the Far East with a greater-than-average growth orientation. The MSCI EAFE® Growth Index more closely tracks the types of securities in which the fund invests than the MSCI EAFE® Index.
(5)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.
(6)Since inception performance for the indices is shown from September 1, 2000.
(7)Since inception performance for the indices is shown from January 1, 2002.
(8)Since inception performance for the indices is shown from March 1, 2001.
Prior to July 26, 2000, the Fund was advised by a different sub-adviser.
27
Table of Contents
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, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 28.49% compared to the Standard & Poor’s/ Citigroup World ex-U.S. Property Index(1) (“S&P/ Citigroup World ex-U.S. Property Index”) which returned 23.68% for the same period.
Portfolio Specifics: By region, Asia-Pacific was the strongest performing region for the period with a 39.0% total return, followed by Europe with a 2.3% return. Performance in the region was broad-based with total returns achieved in each of the major countries within this region: Hong Kong returned 73.7%, Singapore returned 56.0%, Australia returned 42.6% and Japan returned 12.2%. These strong returns were fueled by robust economic growth being generated by emerging economies within the region and those countries which benefit from this growth. The rapid urbanization of China in particular benefited property companies that were able to take advantage of this growth, including Hong Kong-based property developers of residential and commercial space which have expanded into mainland China.
Within Europe, the United Kingdom property stocks were particular laggards, returning -13.3% during the period, versus property stocks in Continental Europe, which returned 6.2% for the same period. The U.K.
Country Allocation
has been beset by concerns of decelerating job growth, particularly in the financial district of London. Sentiment has turned for the worse as the expectation increases that property yields will increase in the coming year. As valuations become increasingly attractive, portfolio strategy of being underweight the U.K. property stocks may be reconsidered during the coming year.
Relative outperformance versus the benchmark was generated primarily by stock picking in Hong Kong and Japan. Country allocation decisions also added to relative performance as an overweight to the Asia-Pacific region, an underweight to the European region, especially Austria, as well as exposure to Brazilian and Indian securities benefited relative performance. In Hong Kong, overweight positions in mainland residential developers Agile Property Holdings Ltd. and Guangzhou R&F Properties Co., Ltd. contributed to relative returns as each of these positions returned over 100% during the year. In Japan, an overweight position in Tokyo-based office companies also contributed to relative performance, including Mitsui Fudosan Co., Ltd. which is primarily a developer and landlord of office and condominium properties in the five central wards of Tokyo. Office fundamentals in Tokyo continue to improve, with rents increasing and vacancy levels below 2.6%, on average. The Fund maintained an underweight exposure to Austria, which was one of the poorest-performing markets during the past year.
Current Strategy and Outlook: In our opinion, the rationale for an international listed property strategy remains very much intact including diversification via low correlation to broad equities and bonds, attractive valuations and the spread of the REIT structure globally. This remains true even under the possible scenario of slowing global economic growth over the coming year. Investment themes looking out to 2008 include a continuing emphasis on investing in higher growth regions of the world,
Top Ten Holdings
| Westfield Group | 6.7% |
| Mitsubishi Estate Co., Ltd. | 6.0% |
| Mitsui Fudosan Co., Ltd. | 5.9% |
| Sun Hung Kai Properties Ltd. | 4.9% |
| Unibail-Rodamco | 4.8% |
| Cheung Kong Holdings Ltd. | 3.8% |
| Sumitomo Realty & Development Co., Ltd. | 3.0% |
| Land Securities Group PLC | 2.7% |
| Macquarie Goodman Group | 2.3% |
| Stockland | 2.0% |
Portfolio holdings are subject to change daily.
including the Asia-Pacific region, and looking for opportunities in select markets which, are currently under-represented in the listed markets but which show stable to improving property fundamentals. Given the increased volatility in global equity markets, the Fund strategy will be to position itself with an orientation to top quality both by management team, strategy and physical properties. Through an average 2% - 3% dividend yield plus high single digits prospective annual earnings growth, international property stocks continue to be well-positioned to conservatively deliver attractive total returns over the next several years.
(1) The S&P/ Citigroup World ex-U.S. Property Index, is an unmanaged market-weighted total return index which consists of many companies from developed markets, excluding the United States, whose floats are larger than $100 million and derive more than half of their revenue from property-related activities.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
28
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||
| Since Inception | |||||||||
| of Classes A, B, C and I | |||||||||
| 1 Year | February 28, 2006 | ||||||||
Including Sales Charge: | |||||||||
Class A(1) | 21.09 | % | 23.15 | % | |||||
Class B(2) | 22.69 | % | 24.69 | % | |||||
Class C(3) | 26.58 | % | 26.64 | % | |||||
| Class I | 28.80 | % | 27.96 | % | |||||
Excluding Sales Charge: | |||||||||
| Class A | 28.49 | % | 27.59 | % | |||||
| Class B | 27.69 | % | 26.75 | % | |||||
| Class C | 27.58 | % | 26.64 | % | |||||
| Class I | 28.80 | % | 27.96 | % | |||||
S&P/Citigroup World ex-U.S. Property Index(4) | 23.68 | % | 23.70 | %(5) | |||||
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 4%, 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/Citigroup World ex-U.S. Property Index is an unmanaged market-weighted total return index which consists of many companies from developed markets, excluding the United States, whose floats are larger than $100 million and derive more than half of their revenue from property-related activities.
(5)Since inception performance of the index is shown from March 1, 2006.
29
Table of Contents
ING International Small Cap Fund (the “Fund”) seeks maximum long term capital appreciation. The Fund’s assets are managed by two sub-advisers — Acadian Asset Management, Inc. (“Acadian”) and Batterymarch Financial Management, Inc. (“Batterymarch”). Each manages a portion of the Fund’s assets that is allocated to the sub-adviser. John Chisholm, CFA, Executive Vice President and Co-Chief Investment Officer and Matthew J. Cohen, CFA, Senior Vice President, Portfolio Managers of Acadian. Charles F. Lovejoy, CFA, Director and Senior Portfolio Manager and Christopher W. Floyd, CFA, Portfolio Manager of Batterymarch.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 41.67% compared to the S&P/ Citigroup Extended Market Index World Ex. U.S.(1) (“S&P/ Citigroup EMI World ex-US”) and the Morgan Stanley Capital International — Europe, Australasia and Far East Small Cap Index(2) (“MSCI EAFE® SmallCap Index”), which returned 28.37% and 22.72%, respectively, for the same period.
Portfolio Specifics: Acadian — The Fund’s outperformance for the reporting period was as a result of both active stock selection and active country weights. Stock selection was particularly strong in Canada, where a focus on materials stocks such as Lionore Mining International Ltd. and Aur Resources Inc. added considerable value. The Fund also gained significant active return in Korea, from a market overweighting and also from stock selection. Other markets with positive stock selection included Japan, Germany, Singapore, Australia, Hong Kong and Spain. Key holdings adding to the Fund’s return over the year included SGL Carbon AG, Yamato Kogyo Co., Ltd, Singapore Petroleum Co. Ltd., Hanwha Chemical, Michael Page International PLC and Avanzit. At the sector level, materials holdings were the most successful overall. Other sources of return included country weightings such as Australia and Taiwan (overweight) and the U.K. and Ireland (underweight).
Less successful investments for the Fund included stock selection in the Netherlands, Sweden, Switzerland and Austria, along with the underweighting in Canada and overweighting in Japan. Stock selection fared least well among
Country Allocation
finance and staples stocks. Mitsubishi UFJ Lease and the German company, Deutsche Bourse, were among the finance holdings that detracted value over the period.
Batterymarch — Our investment process emphasizes stock selection, which was the primary source of relative outperformance for the reporting period. Stock selection was particularly strong in continental Europe, with selection adding the most value in the industrials and materials sectors within that region. Greek holding Sidenor Metal, a steel manufacturer buoyed by the possibility of consolidation, and Gildemeister AG, a German tool manufacturer with a record of strong fundamentals and innovation, were the two greatest contributors to relative performance. Stock selection was also strong in the Australia, New Zealand and Canada region.
Our weakest area for stock selection during the period was in the UK industrials sector. IKB Deutsche Industriebank AG (IKB)., a German firm providing equity capital and leasing finance, was the worst performing stock on a relative basis overall, having been bailed out by the central bank due to U.S. sub-prime exposure.
In keeping with our investment process and philosophy which emphasizes bottom up stock selection and risk control, overall region and sector allocations had little impact on relative Fund performance. The cash position did have a negative impact, given the positive return of the benchmark.
Current Strategy and Outlook: Acadian — The Fund remains focused on bottom-up stock selection driven by a range of quantitative factors related to valuation, earnings, financial quality and price movements. Country overweightings resulting from this process are currently focused on several Asia-Pacific markets including Korea, Australia, Singapore and Taiwan. Japan and Hong Kong are also slightly overweighted. European overweightings include Norway, Germany and Denmark. Additional emerging market exposure includes Turkey, Israel and Mexico. The Fund is underweighted in Switzerland, the U.K., France, Spain and Canada. The sector emphasis of the Fund is on materials, services and energy stocks, with healthcare, banking, utility and finance being underweighted.
Batterymarch — Continental Europe remains the most favorably ranked region globally, with our model targeting overweight positions in most sectors except banks and healthcare. In our opinion, risks include a U.S. slowdown, continued appreciation of the euro and ongoing turbulence in money and credit markets.
Top Ten Holdings*
| Singapore Petroleum Co., Ltd. | 1.5% |
| Dana Petroleum PLC | 1.2% |
| MTU Aero Engines Holding AG | 1.2% |
| Michael Page International PLC | 1.2% |
| Yamato Kogyo Co., Ltd. | 1.1% |
| Nexity | 1.0% |
| Tandberg ASA | 1.0% |
| Hanwha Chemical Corp. | 0.9% |
| Salzgitter AG | 0.9% |
| Sherritt International Corp. | 0.8% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
Within the UK, our models favor materials and industrials, while stocks within the banks sector are less attractive due to higher costs and lower short term revenues for lending banks going forward.
While we believe fundamentals in Japan remain sound, this market is ranked by our model as the least attractive of the major regions due in large part to flow of funds.
(2) The MSCI EAFE® SmallCap Index is an unmanaged, market weighted index that represents the smallcap segments in 21 developed equity markets outside of North America. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or fees 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.
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Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||
| Since Inception | |||||||||||||||||
| of Class I | |||||||||||||||||
| 1 Year | 5 Year | 10 Year | December 21, 2005 | ||||||||||||||
Including Sales Charge: | |||||||||||||||||
Class A(1) | 33.52 | % | 28.16 | % | 17.37 | % | — | ||||||||||
Class B(2) | 35.76 | % | 28.69 | % | 17.34 | % | — | ||||||||||
Class C(3) | 39.76 | % | 28.82 | % | 17.32 | % | — | ||||||||||
| Class I | 42.24 | % | — | — | 31.20 | % | |||||||||||
| Class Q | 41.87 | % | 29.99 | % | 18.34 | % | — | ||||||||||
Excluding Sales Charge: | |||||||||||||||||
| Class A | 41.67 | % | 29.68 | % | 18.07 | % | — | ||||||||||
| Class B | 40.76 | % | 28.83 | % | 17.34 | % | — | ||||||||||
| Class C | 40.76 | % | 28.82 | % | 17.32 | % | — | ||||||||||
| Class I | 42.24 | % | — | — | 31.20 | % | |||||||||||
| Class Q | 41.87 | % | 29.99 | % | 18.34 | % | — | ||||||||||
S&P/Citigroup EMI World ex-US(4) | 28.37 | % | 30.56 | % | 12.91 | % | 26.39 | %(7) | |||||||||
MSCI EAFE® SmallCap Index(5) | 22.72 | % | 29.98 | % (6) | 9.61 | % | 18.59 | %(7) | |||||||||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International SmallCap 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.
*Prior to October 31, 1998, the MSCI EAFE® SmallCap 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 S&P/Citigroup EMI World ex-US is an unmanaged extended market index of the world market, excluding U.S. extended meaning small capitalization stock universe or bottom 20% of available capital of each country. The S&P/Citigroup EMI World ex-US more closely tracks the types of securities the Fund invests than the MSCI EAFE® SmallCap Index.
(5)The MSCI EAFE® SmallCap Index is an unmanaged, market-weighted index that represents the smallcap segments in 21 developed equity markets outside of North America. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or fees of investing.
(6)Net return for index is shown from November 1, 2001.
(7)Since inception performance for the indices is shown from January 1, 2006.
Prior to March 1, 2005, the Fund was advised by a different sub-adviser.
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Table of Contents
ING International Value Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Brandes Investment Partners, L.P. (“Brandes”), the Sub-Adviser. Brandes’ Large Cap Investment Committee is responsible for making the day-to-day investment decisions for the Fund. Glenn R. Carlson, CFA, Chief Executive Officer, Brent V. Woods, CFA, Managing Director — Investments, Amelia Maccoun Morris, CFA, Director — Investments, Brent Fredberg, Senior Analyst, James Brown, CFA, Director — Investments, Keith Colestock, CFA, Director — Investments comprise Brandes’ Large Cap Investment Committee.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 19.87% compared to the Morgan Stanley Capital International — Europe, Australasia and Far East® Index(1) (“MSCI EAFE® Index” or the “Index”), which returned 24.91% for the same period.
Portfolio Specifics: The Fund’s holdings in the diversified telecommunication services and food & staples retailing industries made positive contributions to returns. Securities such as Telefonica SA (Spain — diversified telecommunication services), France Telecom SA (France — diversified telecommunication services), and Koninklijke Ahold NV (Netherlands — food & staples retailing) were some of the top performers from these industries. Positions in the food products and commercial banking industries also advanced. Simultaneously, negative results registered by securities in the communications equipment and consumer finance industries had an unfavorable influence on performance. Some of the largest detractors from these industries included Alcatel-Lucent (France — communications equipment), Nortel Networks Corp. (Canada — communications equipment), and Aiful Corp. (Japan — consumer finance).
The Fund also benefited from advances for positions such as LG Electronics, Inc. (South Korea — household durables), Nestlé SA (Switzerland — food products), and Akzo Nobel NV (Netherlands — chemicals), while falling share prices for holdings such as Mitsubishi UFJ Financial Group, Inc. (Japan — commercial banking) and AstraZeneca PLC (United Kingdom — pharmaceuticals) weakened Fund performance.
Country Allocation
Among countries, securities based in the Netherlands, the United Kingdom, and Germany generally delivered positive results. Fund holdings domiciled in these countries, such as ABN Amro (Netherlands — commercial banking), Wm Morrison Supermarkets PLC (United Kingdom — food & staples retailing), and DaimlerChrysler (Germany — automobiles) had a favorable influence on performance. Conversely, declines among Japan-based holdings, such as Mizuho Financial Group, Inc. (Japan — commercial banking) and Takefuji Corp. (Japan — consumer finance), weighed on returns.
On a relative basis, the Fund’s stock selection in the communications equipment and diversified telecommunication services industries and underweight exposure to the metals & mining industry detracted from performance relative to the Index. The Fund’s greater exposure to the diversified telecommunication services industry than the index, however, benefited relative performance.
During the period, we sold several holdings to pursue other investment opportunities, such positions included DaimlerChrysler (Germany — automobiles), J Sainsbury (United Kingdom — food & staples retailing), and BT Group (United Kingdom — diversified telecommunication services).
We used the proceeds from these sales to establish new positions in companies such as Natixis (France — commercial banking), Sumitomo Mitsui Financial Group, Inc. (Japan — commercial banking), and Chuo Mitsui Trust Holdings (Japan — commercial banking) at prices that we consider attractive. In addition, we took advantage of compelling opportunities to add to select existing holdings at prices we believe to be below our estimates of these securities’ long-term values.
Current Strategy and Outlook: During the reporting period, the Fund’s country and industry exposures shifted slightly due to stock-specific buying and selling, as well as changes in the prices of holdings. For example, exposure to Japan and the pharmaceuticals industry increased, while exposure to Germany and the automobiles industry declined. In fact, we sold both automobile positions during the period. (Keep in mind that the Fund’s weightings for industries and countries are not the product of “top-down” forecasts or opinions, but merely stem from our company-by-company search for compelling investment opportunities in markets around the world.)
Overall, while we offer no predictions regarding the short-term direction of international equity markets, we believe the Fund remains well positioned to deliver favorable long-term results. We acknowledge that many of the Fund’s current
| Deutsche Telekom AG | 4.0% |
| Sanofi-Aventis | 3.3% |
| WM Morrison Supermarkets PLC | 3.2% |
| GlaxoSmithKline PLC | 3.0% |
| AstraZeneca PLC | 3.0% |
| France Telecom SA | 2.9% |
| Mitsubishi UFJ Financial Group, Inc. | 2.6% |
| Carrefour SA | 2.4% |
| Telefonica SA | 2.3% |
| Centrais Eletricas Brasileiras SA ADR | 2.2% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
holdings recently have posted significant gains. However, we believe that all holdings remain undervalued, and we expect them to realize appreciation as the market recognizes their true worth.
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.
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Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||
| Since Inception | Since Inception | ||||||||||||||||||||
| of Class I | of Class Q | ||||||||||||||||||||
| 1 Year | 5 Year | 10 Year | June 18, 2001 | January 24, 2000 | |||||||||||||||||
Including Sales Charge: | |||||||||||||||||||||
Class A(1) | 12.99 | % | 22.69 | % | 13.34 | % | — | — | |||||||||||||
Class B(2) | 14.03 | % | 23.11 | % | 13.21 | % | — | — | |||||||||||||
Class C(3) | 18.10 | % | 23.28 | % | 13.21 | % | — | — | |||||||||||||
| Class I | 20.31 | % | 24.62 | % | — | 14.19 | % | — | |||||||||||||
| Class Q | 20.25 | % | 24.39 | % | — | — | 11.23 | % | |||||||||||||
Excluding Sales Charge: | |||||||||||||||||||||
| Class A | 19.87 | % | 24.14 | % | 14.01 | % | — | — | |||||||||||||
| Class B | 19.03 | % | 23.29 | % | 13.21 | % | — | — | |||||||||||||
| Class C | 19.10 | % | 23.28 | % | 13.21 | % | — | — | |||||||||||||
| Class I | 20.31 | % | 24.62 | % | — | 14.19 | % | — | |||||||||||||
| Class Q | 20.25 | % | 24.39 | % | — | — | 11.23 | % | |||||||||||||
MSCI EAFE® Index(4) | 24.91 | % | 23.21 | % | 9.26 | % | 13.04 | %(5) | 7.10 | %(6) | |||||||||||
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 fees 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.
33
Table of Contents
ING International Value Choice Fund (the “Fund”) seeks long-term capital appreciation. The Fund is managed by Paul J. Hechmer, Portfolio Manager of Tradewinds Global Investors, LLC(1) — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 22.48% compared to the Morgan Stanley Capital International — Europe, Australasia, Far East® Index(2) (“MSCI EAFE® Index”), which returned 24.91% for the same period.
Portfolio Specifics: The Fund continued to gain ground versus the benchmark over the last three months; however for the one-year period ending October 31, 2007, the Fund generated strong absolute returns, but it failed to keep pace with the MSCI EAFE® Index.
While the Fund’s overall sector allocations created from bottom-up stock selection, generally aided returns, individual securities led the Fund to lag the broad EAFE market on a relative basis. The largest detractor from a sector perspective was Telecom Services. Both Nippon Telegraph and Telephone Corporation and KT Corp., came under pressure and failed to keep up with the overall benchmark Telecom average. Overall, we still have high conviction in both these companies. While four of the seven companies in the industrials sector posted positive returns, the overall Fund’s industrials exposure failed to keep pace with the Industrials benchmark average. This was primarily led by weakness in Toppan Printing Co., Ltd., which had some deterioration in its printing operations. Overall, we continue to have high conviction in the stock as it continues to be one of the leading players in the domestic publications and commercial printing markets in Japan, in addition to enjoying a dominant position in the LCD color filters and IC photomasks market.
Country Allocation
From a relative performance perspective, the Fund’s respective holdings in the materials sector generated strong absolute and relative returns, with some of the Fund’s largest performance contributors coming from this area. Rio Tinto PLC, Barrick Gold Corp. and Impala Platinum Holdings Ltd. were among the top contributors. In addition to Barrick Gold Corp., exposure to other gold mining companies such as AngloGold Ashanti Ltd. ADR, Newmont Mining Corp. and Lihir Gold Ltd. also added to returns. The price of gold rallied strongly in the latter part of the year and these companies, which had lagged the overall market for many months, rebounded strongly. The energy sector also performed well from an absolute and relative standpoint. Exposure to strong performing companies including BP PLC and Royal Dutch Shell PLC in the Fund helped boost overall performance.
Healthcare, followed by financials were the two worst performing sectors in the benchmark, and an underweight positioning to these areas of the market was also an additive to relative returns.
Before the significant global market sell off which started in July, the overall market rally was focused on European securities and those companies where there was heightened takeover speculation or merger and acquisitions (“M&A”) activity. The Fund’s general underweight to Europe, and thus its underweighting to the Euro and the Sterling, accounted for about 1% of the relative underperformance, as both currencies continued to appreciate over the one year period; however, good stock selection in UK somewhat offset the negative effect of this underweight. With the increased volatility in the third calendar quarter of 2007, Fund relative performance improved, although the U.S. dollar continued to weaken significantly versus major currencies.
Current Strategy and Outlook: We believe international markets continued their impressive run over the last year, although we saw stock market volatility rear its head towards the latter portion of the period. In our opinion, the majority of investors still appear to believe that current earnings levels and earnings growth will be sustainable over the long term. We are a little more sanguine and believe that markets offer pockets of opportunity, in particular in the materials, telecommunications and the energy sector. We continue to be very underweight in the financials sector even after the recent pull back in this sector. Our focus on providing superior risk adjusted returns over the long term is unchanged.
Top Ten Holdings*
| Nippon Telegraph & Telephone Corp. ADR | 3.9% |
| Barrick Gold Corp. | 3.9% |
| Chunghwa Telecom Co., Ltd. ADR | 3.6% |
| Telecom Italia S.p.A. RNC | 3.6% |
| Anglogold Ashanti Ltd. ADR | 3.4% |
| Dai Nippon Printing Co., Ltd. | 3.2% |
| KT Corp. ADR | 3.2% |
| Newmont Mining Corp. | 3.1% |
| BP PLC | 3.1% |
| Alcatel-Lucent | 3.0% |
| * | Excludes short-term investments related to U.S. government agency obligations. |
Portfolio holdings are subject to change daily.
(1) Effective February 28, 2007, Tradewinds NWQ Global Investors, LLC changed its name to Tradewinds Global Investors, LLC.
(2) 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 fees 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.
34
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||
| Since Inception | Since Inception | Since Inception | |||||||||||||||
| of Classes A and B | of Class C | of Class I | |||||||||||||||
| 1 Year | February 1, 2005 | February 4, 2005 | December 21, 2005 | ||||||||||||||
Including Sales Charge: | |||||||||||||||||
Class A(1) | 15.41 | % | 15.00 | % | — | — | |||||||||||
Class B(2) | 16.54 | % | 15.76 | % | — | — | |||||||||||
Class C(3) | 20.58 | % | — | 16.67 | % | — | |||||||||||
| Class I | 23.04 | % | — | — | 19.10 | % | |||||||||||
Excluding Sales Charge: | |||||||||||||||||
| Class A | 22.48 | % | 17.50 | % | — | — | |||||||||||
| Class B | 21.54 | % | 16.60 | % | — | — | |||||||||||
| Class C | 21.58 | % | — | 16.67 | % | — | |||||||||||
| Class I | 23.04 | % | — | — | 19.10 | % | |||||||||||
MSCI EAFE® Index(4) | 24.91 | % | 21.76 | 21.76 | (5) | 24.10 | %(6) | ||||||||||
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 fees of investing.
(5)Since inception performance for index is shown from February 1, 2005.
(6)Since inception performance for index is shown from February 1, 2006.
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Table of Contents
ING International Value Opportunities Fund (the “Fund”) seeks long term capital appreciation. The Fund is managed by Nicolas Simar, Senior Investment Manager Equities and Head of the Value Team and Frederic Degembe, Investment Manager Equities, of ING Investment Management Advisor, B.V. — the Sub-Adviser.
Performance: Since the Fund’s inception on February 28, 2007 through October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 6.40% compared to the Morgan Stanley Capital International — Europe, Australasia, Far East® Value Index(1) (“MSCI EAFE® Value Index”) and the Morgan Stanley Capital International — Europe, Australasia, Far East® Index(2) (“MSCI EAFE® Index”), which returned 12.20% and to 15.87%, respectively, for the period from March 1, 2007 through October 31, 2007.
Portfolio Specifics: Markets were firm at the beginning of the period (March to June) before getting more volatile for the last quarter. The first part of the year had a bullish tone, with lots of merger and acquisition rumors and operations, decent results, upgrades for full-year guidance and lots of buy-backs supporting share prices. During the summer, however, some problems appeared in the capital markets (the sub-prime crisis, liquidity crunch and CDO valuations). Oil and commodities prices peaked as strong economic conditions in the emerging markets created high demand. In our opinion, this combination of factors led to a level of market volatility not seen for many months.
The Fund benefited from its underweight position in financials, which suffered from the liquidity crisis in the summer. Not only banks but insurers
Country Allocation
and real estate companies were down over the period. We were underweight in all three segments. Our overweight in the telecom sector benefited the Fund as the sector came back strongly in favor thanks to its strong free cash flow profile and to quarterly upbeat numbers.
The cyclicals rally was very strong and clearly hurt our performance. In materials, for example, we owned companies involved in paper (lots of restructuring happening there and we believe valuation is appealing), which fared poorly; mining stocks, on the other hand, were the market’s darlings. We were underweighted in industrials, which proved to be a wrong bet as high demand from emerging countries filled up their order books.
The Fund benefited from the strong performance of Arcelor Mittal, thanks to its aggressive and well-received industrial strategy. Coca-Cola Hellenic Bottling Co. SA, (the Coke bottler in the Mediterranean region, achieved strong gains as a result of heavy investments paying off. Two of the Fund’s positions — Iberdrola SA and Fortum OYJ — benefited from the frenzy for European utilities. In Japan, the Fund benefited from the good performance of the trading company Itochu Techno-Solutions Corp. Mitsubishi Materials Corp. also was a good performer.
The Fund was hurt by companies that released surprising profit warnings: UK sugar company, Tate & Lyle PLC and Finnish paper company, UPM-Kymmene OYJ. Inflation in materials costs (sugar and wood) hit these two companies. Other weak performers were in Japan, where the financial stocks were particularly weak because of exposure to the U.S. sub-prime crisis. Among the detractors from Fund performance were Resona Holdings, Inc. and Mitsubishi UFJ Financial Group, Inc.
Current Strategy and Outlook: The latest fiscal quarter was highly volatile, bespeaking investors’ nervousness under current capital market conditions. We
| BP PLC | 5.1% |
| Royal Dutch Shell PLC – Class A | 4.2% |
| HSBC Holdings PLC | 4.0% |
| Fortis | 2.9% |
| Vivendi | 2.8% |
| Banco Santander Central Hispano SA | 2.7% |
| Nestle SA | 2.6% |
| E.ON AG | 2.5% |
| Total SA | 2.5% |
| Royal Bank of Scotland Group PLC | 2.2% |
Portfolio holdings are subject to change daily.
remain cautious short term and believe the current credit crisis is not over. At the same time, we believe consumer spending slows down as employment becomes less favorable. We are sticking to our defensive approach, going for reasonably priced companies that offer a safety net in case the economy slows.
(2) The MSCI EAFE® Index is an unmanaged index that measures the performance of securities listed on exchanges in Europe, Australasia and the Far East. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or fees 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.
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Table of Contents
| Cumulative Total Returns for the Period Ended October 31, 2007 | |||||
| Since Inception | |||||
| of Classes A, B, C and I | |||||
| February 28, 2007 | |||||
Including Sales Charge: | |||||
Class A(1) | 0.28 | % | |||
Class B(2) | 0.90 | % | |||
Class C(3) | 4.60 | % | |||
| Class I | 6.70 | % | |||
Excluding Sales Charge: | |||||
| Class A | 6.40 | % | |||
| Class B | 5.90 | % | |||
| Class C | 5.60 | % | |||
| Class I | 6.70 | % | |||
MSCI EAFE® Value Index(4) | 12.20 | %(6) | |||
MSCI EAFE® Index(5) | 15.87 | %(6) | |||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING International Value Opportunities 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.
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.
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% for the since inception return.
(3)Reflects deduction of the Class C deferred sales charge of 1% for the since inception return.
(4)The MSCI EAFE® Value Index is an unmanaged index consisting of that 50% of the MSCI EAFE® with the lowest Price/Book Value ratio. Index weightings represent the relative capitalizations of the major overseas markets included in the index on a U.S. dollar adjusted basis.
(5)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.
(6)Since inception performance for the indices is shown from March 1, 2007.
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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, Portfolio Manager of ING Investment Management Advisors B.V.(1) — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 47.16% compared to the Morgan Stanley Capital International Emerging Markets IndexSM(2) (“MSCI EM IndexSM”) and the Russian Trading System Index(3) (“RTS Index”), which returned 67.84% and 38.71%, respectively, for the same period.
Portfolio Specifics: In our opinion, the absolute return for the Russian equity market over the fiscal year was quite strong. However, given the exceptional performance of oil prices over the period, as well as other emerging equities markets, one would have expected more from Russian stocks. Partly, this was due to uncertainty surrounding the succession of President Putin. Another reason was the large amount of capital being raised, in some large deals as well as a lot of small ones.
Large caps generally underperformed the market as many foreign investors reduced their positions, and energy stocks especially lagged. The Fund benefited by being underweight the energy sector for most of the period. Initially, the underweight was taken because the oil price had been correcting. Even when the oil price started to climb again the situation was not favorable for large cap oil companies, with low production growth and high taxation; we therefore maintained the positioning.
The strongest stocks were mostly found in the materials, consumer and telecom sectors. These sectors benefit from the strength of the domestic economy, which we believe will continue to do well, whether oil prices are at $50 or $100 per barrel. This is the reason why the Fund was overweight these sectors, notably through substantial holdings in mobile operators
Industry Allocation
MTS and Vimpel-Communications OAO ADR and steel company, Mechel OAO ADR. Another stock that contributed significantly to results was Sberbank RF, which nearly doubled in price over the period.
One of the positions that clearly lagged the Russian market was Efes Breweries International NV GDR. During the first half of the fiscal year, a $300 million rights issue put pressure on the stock. Given the positive outlook for the beer market in Russia and other countries in the region where the company is active, the position was maintained in the Fund. In the second half of the year, the stock performed in line with the index.
Another stock that detracted from the Fund’s performance over the period was agricultural chemicals company, Uralkali. It was the best performing stock in the RTS index, but the Fund did not own it. As valuations are now quite stretched, the Fund will not chase this performance. Instead, the Fund will maintain an overweight position in the materials sector, through what we believe are more attractively valued companies.
The positioning in the healthcare sector hurt the Fund’s relative performance. There are no healthcare stocks included in the RTS index; both of the Fund’s healthcare holdings, Kalina and Pharmstandard, lagged the index. We are keeping the positions for diversification benefits, as healthcare is a defensive sector with very stable growth. Polyus Gold Co. ZAO ADR and oil pipeline company Transneft saw their share price actually fall over the year. The position of the Fund in these names was neutral.
Current Strategy and Outlook: We see the fundamentals for the Russian equity market as strong and improving. We have this view despite oil prices already being at record levels. We see the domestic economy doing well, as long as the oil price does not totally collapse. The reason for the improving outlook is that we expect the March elections to clear the political uncertainty, and the market to start anticipating this ahead of time. We believe the Russian market will look attractive, especially if the global economy slows down. Accordingly, we expect to increase the Fund’s weight in large cap names that have lagged over the previous period.
Top Ten Holdings*
| Sberbank RF | 12.2% |
| Lukoil-Spon ADR | 10.9% |
| OAO Gazprom | 9.8% |
| MMC Norilsk Nickel ADR | 5.7% |
| Mechel OAO ADR | 4.6% |
| Mobile Telesystems Finance SA ADR | 4.2% |
| Unified Energy System | 4.2% |
| Vimpel-Communications OAO ADR | 3.8% |
| Surgutneftegaz ADR | 3.4% |
| Wimm-Bill-Dann Foods OJSC ADR | 3.4% |
| * | Excludes short-term investments related to securities lending collateral. |
Portfolio holdings are subject to change daily.
(1) Effective July 1, 2007, Mr. Samuel Oubadia is no longer a portfolio manager to the Fund. Also, effective October 29, 2007, Mr. Bernard Mignon is no longer a portfolio manager to the Fund.
(2) The MSCI EM IndexSM is an unmanaged index that measures the performance of securities listed on exchanges in developing nations throughout the world. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or fees of investing.
(3) The RTS Index is a capitalization-weighted index that is calculated in U.S. dollars. The index tracks the performance of Russia’s most active stocks traded on the RTS. The index is operated by the National Association of Participants in the Securities Markets, a non-profit body.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
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| Average Annual Total Returns for the Years Ended October 31, 2007 | |||||||||||||
| 1 Year | 5 Year | 10 Year | |||||||||||
Including Sales Charge: | |||||||||||||
Class A(1) | 38.70 | % | 45.12 | % | 16.38 | % | |||||||
Excluding Sales Charge: | |||||||||||||
| Class A | 47.16 | % (2) | 46.85 | % | 17.06 | % | |||||||
MSCI EM IndexSM(3) | 67.84 | % | 39.86 | % (4) | 15.18 | % | |||||||
RTS Index(5) | 38.71 | % | 45.99 | % | 18.06 | % | |||||||
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.
*The graph above illustrates the gross returns for the MSCI EM IndexSM for the first five years of the ten year period and net index returns for last five years of the ten year period.
(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 MSCI EM IndexSM is an unmanaged index that measures the performance of securities listed on exchanges in developing nations throughout the world. It includes the reinvestment of dividends net of withholding taxes, but does not reflect fees, brokerage commissions or fees of investing.
(4)Net return for index is shown from November 1, 2002.
(5)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.
39
Table of Contents
ING Emerging Markets Fixed Income Fund (the “Fund”) seeks to maximize total return. The Fund is managed by Gorky Urquieta, Senior Investment Manager and Daniel Eustaquio(1), Senior Portfolio Manager of ING Investment Management Advisors B.V. — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding shares charges, provided a return of 7.18%, compared to the JPMorgan Emerging Markets Bond Index Global Diversified(2) (“JPMorgan EMB Index Global Diversified”), which returned 7.72% for the same period.
Portfolio Specifics: The JPMorgan EMB Index Global Diversified spread over U.S. Treasury obligations narrowed slightly but there was substantial volatility during the fiscal year. Midway through the first quarter of 2007, emerging market spreads hovered around 1.80%, and then jumped to 2.03% when the Chinese government announced measures to restrict speculative stock investment. There followed several weeks of nervous reaction by investors.
When risk aversion receded, investors again focused on the positive fundamentals of the global economy and emerging market countries. The carry trade returned, whereby investors borrow money in currencies with low interest rates and buy riskier securities.
Sentiment turned abruptly, however, when the U.S. sub-prime mortgage crisis broke. Ever lower mortgage lending standards, combined with the widespread use of low “teaser” rates that began to reset higher, resulted in an acceleration of mortgage delinquency rates and precipitated a credit crisis throughout the financial system.
The freeze-up of the commercial paper market, the prospect of wide-scale lending losses and even the possibility of a recession, persuaded the U.S. Federal Reserve to lower interest rates in September 2007 and again in October 2007. The cuts produced some rallies, but economic uncertainty continues to affect the markets, as evidenced by JPMorgan EMB Index Global Diversified spreads, which as of this writing in early November 2007 are again at 2.45%.
Country Allocation
For the fiscal year, the Fund’s below-benchmark credit quality detracted capital value. On the other hand, its above-benchmark coupon contributed to return and mostly offset the credit impact. Through the end of May 2007 the Fund accumulated a significant outperformance, most of which was wiped out after the U.S. subprime issue broke in late June 2007.
At that time, prices for Argentine and Venezuelan bonds, two of the Fund’s overweighted countries, dropped swiftly as investors used the riskier emerging market bonds to attempt to hedge their risk in mortgage-backed securities and to meet margin calls resulting from markdowns in those mortgage-backed securities. The Fund’s overweight in Argentina detracted from performance but was offset by instrument selection, as the Argentine bonds the Fund held outperformed the bonds in the benchmark.
Also contributing to results were an off-benchmark bet on Brazilian local-currency bonds, primarily the result of an appreciating exchange rate; an underweight in high quality but low-yielding Malaysia; and an overweight in Turkey expressed partially in local currency bonds.
The detractors were small, but together erased the benefits from the winning positions: an underweight in Ecuador (affected by an apparent turn towards a more creditor-friendly rhetoric from that country’s government), an overweight in Kazakhstan (where a credit crunch is affecting local banks), an overweight in Russia, overweight in Ukraine (hampered by political difficulties) and an overweight in Venezuela.
Current Strategy and Outlook: We maintain a positive outlook for emerging market debt as we believe the fundamental drivers are still strong. In our opinion, the U.S. economy will be able to avert a recession and while the aggregate of the emerging countries’ economies will not grow by as much as in the previous year, they will be able to partially decouple from the effect of the U.S. deceleration or at least avoid a crisis.
Top Ten Holdings
Russia Government International Bond,
| 12.750%, due 06/24/28 | 3.1% |
| 7.000%, due 09/26/16 | 2.7% |
| 5.375%, due 04/12/27 | 2.6% |
| 8.280%, due 12/31/33 | 2.6% |
| 7.375%, due 02/05/25 | 2.6% |
| 6.580%, due 11/21/16 | 2.3% |
| 7.125%, due 01/20/37 | 2.3% |
| 7.650%, due 04/21/25 | 1.8% |
| 7.375%, due 01/27/17 | 1.7% |
| 7.500%, due 03/31/30 | 1.6% |
Portfolio holdings are subject to change daily.
We expect inflows to the asset class as investors reassess their allocations at year-end. Valuations appear rich compared to U.S. corporate high-yield bonds. This perception is tempered, however, by improving credit ratings for emerging market countries.
Some of the spread differential can be explained by the more frequent issuance of U.S. corporate high-yield bonds with call features that keep those spreads high. We have incorporated corporate bond positions into the portfolio that have yields higher than comparable sovereign bonds from the same countries. The Fund is likely to continue to add to these local-currency positions.
(1) Effective May 1, 2007, Rob Drijkoningen was replaced by Daniel Eustaquio as a portfolio manager to the Fund.
(2) The JPMorgan EMB Index Global Diversified is a uniquely-weighted version of the Emerging Markets Bond Index Global. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund may differ from that presented for other ING Funds. Performance for the different classes of shares will vary based on differences in fees associated with each class.
40
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||||||||||
| Since Inception | Since Inception | Since Inception | Since Inception | ||||||||||||||||||
| of Class A | of Class B | of Class C | of Class I | ||||||||||||||||||
| 1 Year | December 21, 2005 | January 4, 2006 | March 1, 2006 | December 20, 2006 | |||||||||||||||||
Including Sales Charge: | |||||||||||||||||||||
Class A(1) | 4.55% | 5.46 | % | — | — | — | |||||||||||||||
Class B(2) | 1.40% | — | 5.25 | % | — | — | |||||||||||||||
Class C(3) | 5.41% | — | — | 5.50 | % | — | |||||||||||||||
| Class I | — | — | — | — | 4.25 | % | |||||||||||||||
Excluding Sales Charge: | |||||||||||||||||||||
| Class A | 7.18% | 8.87 | % | — | — | — | |||||||||||||||
| Class B | 6.40% | — | 7.33 | % | — | — | |||||||||||||||
| Class C | 6.41% | — | — | 5.50 | % | — | |||||||||||||||
| Class I | — | — | — | — | 4.25 | % | |||||||||||||||
JPMorgan EMB Index Global Diversified(4) | 7.72% | 8.55 | %(5) | 8.55 | %(5) | 7.27 | % | 5.80 | %(6) | ||||||||||||
Based on a $10,000 initial investment, the graph and table above illustrate the total return of ING Emerging Markets Fixed Income 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)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 5.75% 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 4%, 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 JPMorgan EMB Index Global Diversified is a uniquely-weighted version of the Emerging Markets Bond Index Global. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding.
(5)Since inception performance for index is shown from January 1, 2006.
(6)Since inception performance for index is shown from January 1, 2007.
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Table of Contents
ING Global Bond Fund (the “Fund”) seeks to maximize total return through a combination of current income and capital appreciation. The Fund is managed by James B. Kauffmann, Portfolio Manager of ING Investment Management Co. — the Sub-Adviser.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 9.61% compared to the Lehman Brothers Global Aggregate Index(1) (the “Index”), which returned 8.91% for the same period.
Portfolio Specifics: The past year will be remembered as one of severe financial market turmoil that led to billions of dollars in losses for major Wall Street firms and lack of confidence in the markets. While Europe and the UK continued to expand, the first six months of the period were marked with uncertainty surrounding the outlook for the U.S. economy. Many predicted a soft landing, while others expected a deep recession for the United States and slower growth abroad.
The deciding factor was the U.S. housing market, when it became clear that the housing downturn was nowhere near over. As home price appreciation and affordability slowed, higher mortgage rates and falling home equity led to defaults and foreclosures. The deterioration of the mortgage market spread to the broader markets, and credit became sharply scarcer and more expensive. The U.S. problem quickly turned into a global one, as it impacted German and UK banks that held sub-prime debt. With more losses looming, borrowing costs skyrocketing, the equity markets down and the
Investment Type Allocation
credit markets at a stand-still, the U.S. Federal Reserve (the “Fed”) sought to restore order by lowering the interest rates half a percentage point in September and by another quarter point in October.
The Fund benefited during the first half of the year from less interest rate exposure than the Index, expressed in the U.S. and Japanese markets. As economic and market sentiment turned, Fund positions flipped to overweight interest rate exposure, principally focused in the United States, UK and Europe. Broadly speaking, the Fund was positioned for steeper curves in most of the major markets, leading to further outperformance. As U.S. growth slowed relative to other major economies, the Fund benefited from being underweight the dollar. We held a significant position in the Norwegian krone, which benefited from strong economic growth and soaring oil prices.
Current Strategy and Outlook: In our opinion, the downturn in the housing market has been much more severe and drawn out than anyone originally forecast. We believe this weakness will spill over to the broader economy beginning in the fourth quarter, with the outcome hinging on the consumer. As falling house prices and rising energy prices detract from personal wealth, we expect greater pressure on consumer spending to slow. In our opinion, unemployment is likely to continue rising, as private hiring will be inhibited by depressed profit levels. We believe the effects of these factors on the economy will lead the Fed to cut interest rates further.
With our U.S. outlook in mind, it is hard to envision the global economy expanding unscathed. While the G7 real economies may not be directly linked, the global financial markets certainly are, and these countries will likely follow the path of the U.S. In particular, we think the UK will be the next country under pressure, as the financial industry there makes up about 10% of gross domestic product growth. In the current environment of investor uncertainty, as government yields fall and credit spreads widen, the Fund will remain overweight duration in the G7 economies. Near-term
| Bundesobligation, 3.500%, due 10/09/09 | 20.0% |
| 1.500%, due 06/20/12 | 7.5% |
| U.S. Treasury Note, 4.500%, due 05/15/10 | 6.8% |
| Bundesrepub. Deutschland, 4.250%, due 07/04/17 | 5.9% |
| U.S. Treasury Note, 4.000%, due 09/30/09 | 5.8% |
| 1.700%, due 03/20/17 | 5.4% |
| United Kingdom Gilt Bond, 4.750%, due 06/07/10 | 5.2% |
| Italy Buoni Poliennali Del Tesoro, 3.750%, due 08/01/16 | 4.1% |
| 3.250%, due 04/25/16 | 4.0% |
| 5.500%, due 11/15/34 | 4.0% |
| * | Excludes short-term investments related to ING Institutional Prime Money Market Fund. |
Portfolio holdings are subject to change daily.
the U.S. dollar has more room to depreciate; however, as non-U.S. economies begin to weaken, the currency is likely to benefit from investors seeking high-quality assets. We expect eventually to overweight the dollar relative to the benchmark.
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.
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Table of Contents
| Average Annual Total Returns for the Period Ended October 31, 2007 | |||||||||
| Since Inception | |||||||||
| of Classes, A, B, C and I | |||||||||
| 1 Year | June 30, 2006 | ||||||||
Including Sales Charge: | |||||||||
Class A(1) | 6.90% | 5.67 | % | ||||||
Class B(2) | 3.74% | 5.80 | % | ||||||
Class C(3) | 7.90% | 8.83 | % | ||||||
| Class I | 9.88% | 9.88 | % | ||||||
Excluding Sales Charge: | |||||||||
| Class A | 9.61% | 9.60 | % | ||||||
| Class B | 8.74% | 8.72 | % | ||||||
| Class C | 8.90% | 8.83 | % | ||||||
| Class I | 9.88% | 9.88 | % | ||||||
Lehman Brothers Global Aggregate Index(4) | 8.91% | 9.12 | %(5) | ||||||
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 4%, 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 Lehman Brothers Global Aggregate Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices.
(5)Since inception performance for the index is shown from July 1, 2006.
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Table of Contents
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 the Investment Adviser. The Fund is managed by ING Investments, LLC, under the guidance of an investment review committee.(1)
Portfolio Specifics: The Fund’s current approximate target investment allocations (expressed as a percentage of its net assets) among the underlying funds are set out below. As these are strategic allocations, the actual allocations of the Fund’s assets may deviate from the percentages shown.
Performance: For the year ended October 31, 2007, the Fund’s Class A shares, excluding sales charges, provided a total return of 29.66% compared to the 32.43% return for the Fund’s benchmark, the Morgan Stanley Capital International All Country World ex USA IndexSM(2) (“MSCI ACWI ex USA IndexSM”) for the same period.
Part of the Fund’s underperformance was due to differences in the makeup of its benchmark, the MSCI ACWI ex USA IndexSM, and the Fund’s Strategic Allocations set out below. Thus, while non-benchmark
Asset Allocation
| ING Emerging Countries Fund – Class I | 5.3% |
| ING Foreign Fund – Class I | 17.9% |
| ING Index Plus International Equity Fund – Class I | 20.0% |
| ING International Capital Appreciation Fund – Class I | 23.6% |
| ING International Equity Dividend Fund – Class I | 9.3% |
| ING International Real Estate Fund – Class I | 3.1% |
| ING International SmallCap Fund – Class I | 11.3% |
| ING International Value Choice Fund – Class I | 9.4% |
| Other Assets and Liabilities – Net | 0.1% |
| 100.0% |
Portfolio holdings are subject to change daily.
holdings in small-cap and real estate performed positively, on a relative basis, they did not perform as well as the benchmark and thus dragged down Fund’s performance compared to the benchmark.
Most of the under performance arose at the Fund level. Although five of the seven underlying funds held for the entire 12-month period outperformed general benchmarks appropriate to their respective international asset classes, the outperformance needed to be even better because we rely on these funds to provide exposure to emerging markets, by far the strongest international equity asset class during the period. ING Index Plus International Equity Fund and ING Emerging Countries Fund detracted from relative performance because they lagged their respective benchmarks.
Current Strategy and Outlook: We adopted a new strategic neutral allocation on March 1 2007, which entailed decreasing the allocation to international core in favor of international growth and international value in equal increments, and decreasing emerging markets in favor of international real estate.
During the year, we also made a tactical move to a neutral position in small cap, from an underweight. We believe small-cap valuations remain attractive compared to the larger-cap developed markets, all the more so in light of the volatility seen this year. Increasing activity in mergers and acquisitions, leveraged buyouts and private equity may benefit small caps for the near term. In addition, we added to emerging markets and closed the year with an overweight position. We are comfortable with
Target Allocation
| International Core | 35.0% |
| International Growth | 20.0% |
| International Value | 15.0% |
| International SmallCap | 10.0% |
| Emerging Markets | 17.0% |
| International Real Estate | 3.0% |
these positions, mainly because they continue to experience strong price momentum, and their resilience to volatility has not wavered.
We lowered the allocation to international core, mainly as a funding source, and are now neutral in this asset class. We remain underweight in both large value and real estate, and overweight in large growth. It is our view that in a rising rate environment, international opportunities may continue to migrate toward the growth space, causing us to favor growth. We believe the earnings outlook for financial stocks, which comprise a significant portion of value index, remains relatively unfavorable.
(2) The MSCI ACWI ex US IndexSM measures the returns of equities of companies that are domiciled outside the United States. It includes the reinvestment of dividends and distributions net of withholding taxes, but does not reflect fees, brokerage commissions or other expenses of investing.
Actual weights of underlying funds are subject to change daily based on market activity. Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. 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.
44
Table of Contents
| Average Annual Total Returns for the Periods Ended October 31, 2007 | |||||||||||||
| Since Inception | Since Inception | ||||||||||||
| of Classes A, B, C and I | of Class R | ||||||||||||
| 1 Year | December 21, 2005 | December 12, 2006 | |||||||||||
Including Sales Charge: | |||||||||||||
Class A(1) | 22.19 | % | 20.69 | % | — | ||||||||
Class B(2) | 23.68 | % | 21.88 | % | — | ||||||||
Class C(3) | 27.63 | % | 23.66 | % | — | ||||||||
| Class I | 29.69 | % | 24.72 | % | — | ||||||||
| Class R | — | — | 22.33 | % | |||||||||
Excluding Sales Charge: | |||||||||||||
| Class A | 29.66 | % | 24.59 | % | — | ||||||||
| Class B | 28.68 | % | 23.68 | % | — | ||||||||
| Class C | 28.63 | % | 23.66 | % | — | ||||||||
| Class I | 29.69 | % | 24.72 | % | — | ||||||||
| Class R | — | — | 22.33 | % | |||||||||
MSCI ACWI ex US IndexSM(4) | 32.43 | % | 27.90 | %(5) | 27.82 | %(6) | |||||||
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 4%, 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 IndexSM 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 December 1, 2006.
45
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, 2007 to October 31, 2007. The Funds’ expenses are shown without the imposition of any sales charges or fees. Expenses would have been higher if such charges were included.
Actual Expenses
The first section of the table shown, “Actual Fund Return,” provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the table shown, “Hypothetical (5% return before expenses),” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the hypothetical lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning | Ending | Expenses Paid | ||||||||||||||
| Account | Account | Annualized | During the | |||||||||||||
| Value | Value | Expense | Period Ended | |||||||||||||
| ING Global Equity Dividend Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | ||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,037.70 | 1.26 | % | $ | 6.47 | ||||||||
| Class B | 1,000.00 | 1,033.90 | 2.01 | 10.30 | ||||||||||||
| Class C | 1,000.00 | 1,033.50 | 2.01 | 10.31 | ||||||||||||
Class I(1) | 1,000.00 | 1,072.60 | 0.90 | 2.35 | ||||||||||||
| Class O | 1,000.00 | 1,037.70 | 1.26 | 6.47 | ||||||||||||
| Hypothetical (5% return before expenses) | ||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.85 | 1.26 | % | $ | 6.41 | ||||||||
| Class B | 1,000.00 | 1,015.07 | 2.01 | 10.21 | ||||||||||||
| Class C | 1,000.00 | 1,015.07 | 2.01 | 10.21 | ||||||||||||
| Class I | 1,000.00 | 1,020.67 | 0.90 | 4.58 | ||||||||||||
| Class O | 1,000.00 | 1,018.85 | 1.26 | 6.41 | ||||||||||||
| (1) | Commencement of operations for Class I was August 1, 2007. Expenses paid reflect the 92-day period ended October 31, 2007. |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year (except “Actual Fund Return” information for all share classes footnoted above). |
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Table of Contents
| Beginning | Ending | Expenses Paid | |||||||||||||||
| Account | Account | Annualized | During the | ||||||||||||||
| Value | Value | Expense | Period Ended | ||||||||||||||
| ING Global Natural Resources Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | |||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,253.80 | 1.44 | % | $ | 8.18 | |||||||||
Class I(1) | 1,000.00 | 1,175.60 | 1.08 | 2.96 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,017.95 | 1.44 | % | $ | 7.32 | |||||||||
| Class I | 1,000.00 | 1,019.76 | 1.08 | 5.50 | |||||||||||||
ING Global Real Estate Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,014.90 | 1.30 | % | $ | 6.60 | |||||||||
| Class B | 1,000.00 | 1,011.00 | 2.05 | 10.39 | |||||||||||||
| Class C | 1,000.00 | 1,010.80 | 2.05 | 10.39 | |||||||||||||
| Class I | 1,000.00 | 1,017.00 | 0.95 | 4.83 | |||||||||||||
| Class O | 1,000.00 | 1,015.20 | 1.30 | 6.60 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.65 | 1.30 | % | $ | 6.61 | |||||||||
| Class B | 1,000.00 | 1,014.87 | 2.05 | 10.41 | |||||||||||||
| Class C | 1,000.00 | 1,014.87 | 2.05 | 10.41 | |||||||||||||
| Class I | 1,000.00 | 1,020.42 | 0.95 | 4.84 | |||||||||||||
| Class O | 1,000.00 | 1,018.65 | 1.30 | 6.61 | |||||||||||||
ING Global Value Choice Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,142.40 | 1.81 | % | $ | 9.77 | |||||||||
| Class B | 1,000.00 | 1,138.90 | 2.46 | 13.26 | |||||||||||||
| Class C | 1,000.00 | 1,138.70 | 2.46 | 13.26 | |||||||||||||
| Class I | 1,000.00 | 1,145.50 | 1.29 | 6.98 | |||||||||||||
| Class Q | 1,000.00 | 1,144.40 | 1.54 | 8.32 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,016.08 | 1.81 | % | $ | 9.20 | |||||||||
| Class B | 1,000.00 | 1,012.80 | 2.46 | 12.48 | |||||||||||||
| Class C | 1,000.00 | 1,012.80 | 2.46 | 12.48 | |||||||||||||
| Class I | 1,000.00 | 1,018.70 | 1.29 | 6.56 | |||||||||||||
| Class Q | 1,000.00 | 1,017.44 | 1.54 | 7.83 | |||||||||||||
| (1) | Commencement of operations for Class I was August 1, 2007. Expenses paid reflect the 92-day period ended October 31, 2007. |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year (except “Actual Fund Return” information for all share classes footnoted above). |
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Table of Contents
| Beginning | Ending | Expenses Paid | |||||||||||||||
| Account | Account | Annualized | During the | ||||||||||||||
| ING Disciplined International SmallCap | Value | Value | Expense | Period Ended | |||||||||||||
| Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | |||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,070.90 | 1.11 | % | $ | 5.79 | |||||||||
| Class B | 1,000.00 | 1,066.50 | 1.86 | 9.69 | |||||||||||||
| Class C | 1,000.00 | 1,066.50 | 1.86 | 9.69 | |||||||||||||
| Class I | 1,000.00 | 1,072.50 | 0.86 | 4.49 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.61 | 1.11 | % | $ | 5.65 | |||||||||
| Class B | 1,000.00 | 1,015.83 | 1.86 | 9.45 | |||||||||||||
| Class C | 1,000.00 | 1,015.83 | 1.86 | 9.45 | |||||||||||||
| Class I | 1,000.00 | 1,020.87 | 0.86 | 4.38 | |||||||||||||
ING Emerging Countries Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,160.30 | 1.86 | % | $ | 10.13 | |||||||||
| Class B | 1,000.00 | 1,156.10 | 2.61 | 14.18 | |||||||||||||
| Class C | 1,000.00 | 1,155.70 | 2.61 | 14.18 | |||||||||||||
| Class I | 1,000.00 | 1,162.20 | 1.53 | 8.34 | |||||||||||||
| Class Q | 1,000.00 | 1,160.60 | 1.78 | 9.69 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,015.83 | 1.86 | % | $ | 9.45 | |||||||||
| Class B | 1,000.00 | 1,012.15 | 2.61 | 13.24 | |||||||||||||
| Class C | 1,000.00 | 1,012.05 | 2.61 | 13.24 | |||||||||||||
| Class I | 1,000.00 | 1,017.49 | 1.53 | 7.78 | |||||||||||||
| Class Q | 1,000.00 | 1,016.23 | 1.78 | 9.05 | |||||||||||||
ING Foreign Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,115.60 | 1.54 | % | $ | 8.21 | |||||||||
| Class B | 1,000.00 | 1,111.20 | 2.29 | 12.19 | |||||||||||||
| Class C | 1,000.00 | 1,111.10 | 2.29 | 12.19 | |||||||||||||
| Class I | 1,000.00 | 1,117.30 | 1.21 | 6.46 | |||||||||||||
| Class Q | 1,000.00 | 1,115.70 | 1.45 | 7.73 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,017.44 | 1.54 | % | $ | 7.83 | |||||||||
| Class B | 1,000.00 | 1,013.66 | 2.29 | 11.62 | |||||||||||||
| Class C | 1,000.00 | 1,013.66 | 2.29 | 11.62 | |||||||||||||
| Class I | 1,000.00 | 1,019.11 | 1.21 | 6.16 | |||||||||||||
| Class Q | 1,000.00 | 1,017.90 | 1.45 | 7.37 | |||||||||||||
| * | Expenses are equal to each Fund’s respective annualized expense rations 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
| Beginning | Ending | Expenses Paid | |||||||||||||||
| Account | Account | Annualized | During the | ||||||||||||||
| Value | Value | Expense | Period Ended | ||||||||||||||
| ING Greater China Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | |||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,661.90 | 1.91 | % | $ | 12.82 | |||||||||
| Class B | 1,000.00 | 1,655.70 | 2.66 | 17.81 | |||||||||||||
| Class C | 1,000.00 | 1,654.80 | 2.66 | 17.80 | |||||||||||||
| Class I | 1,000.00 | 1,663.90 | 1.66 | 11.15 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,015.58 | 1.91 | % | $ | 9.70 | |||||||||
| Class B | 1,000.00 | 1,011.80 | 2.66 | 13.49 | |||||||||||||
| Class C | 1,000.00 | 1,011.80 | 2.66 | 13.49 | |||||||||||||
| Class I | 1,000.00 | 1,016.84 | 1.66 | 8.44 | |||||||||||||
ING Index Plus International Equity Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,065.70 | 1.16 | % | $ | 6.04 | |||||||||
| Class B | 1,000.00 | 1,070.10 | 1.92 | 10.02 | |||||||||||||
| Class C | 1,000.00 | 1,068.50 | 1.92 | 10.01 | |||||||||||||
| Class I | 1,000.00 | 1,074.10 | 0.87 | 4.55 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.36 | 1.16 | % | $ | 5.90 | |||||||||
| Class B | 1,000.00 | 1,015.53 | 1.92 | 9.75 | |||||||||||||
| Class C | 1,000.00 | 1,015.53 | 1.92 | 9.75 | |||||||||||||
| Class I | 1,000.00 | 1,020.82 | 0.87 | 4.43 | |||||||||||||
ING International Capital Appreciation Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,167.30 | 1.50 | % | $ | 8.19 | |||||||||
| Class B | 1,000.00 | 1,162.40 | 2.25 | 12.26 | |||||||||||||
| Class C | 1,000.00 | 1,161.00 | 2.25 | 12.26 | |||||||||||||
| Class I | 1,000.00 | 1,168.60 | 1.15 | 6.29 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,017.64 | 1.50 | % | $ | 7.63 | |||||||||
| Class B | 1,000.00 | 1,013.86 | 2.25 | 11.42 | |||||||||||||
| Class C | 1,000.00 | 1,013.86 | 2.25 | 11.42 | |||||||||||||
| Class I | 1,000.00 | 1,019.41 | 1.15 | 5.85 | |||||||||||||
| * | Expenses are equal to each Fund’s respective annualized expense rations 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
| Beginning | Ending | Expenses Paid | |||||||||||||||
| Account | Account | Annualized | During the | ||||||||||||||
| Value | Value | Expense | Period Ended | ||||||||||||||
| ING International Equity Dividend Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | |||||||||||||
| Actual Fund Return | |||||||||||||||||
Class A(1) | $ | 1,000.00 | $ | 1,057.00 | 1.40 | % | $ | 4.93 | |||||||||
Class B(1) | 1,000.00 | 1,055.00 | 2.15 | 7.57 | |||||||||||||
Class C(1) | 1,000.00 | 1,055.00 | 2.15 | 7.57 | |||||||||||||
Class I(1) | 1,000.00 | 1,058.00 | 1.15 | 4.05 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.15 | 1.40 | % | $ | 7.12 | |||||||||
| Class B | 1,000.00 | 1,014.37 | 2.15 | 10.92 | |||||||||||||
| Class C | 1,000.00 | 1,014.37 | 2.15 | 10.92 | |||||||||||||
| Class I | 1,000.00 | 1,019.41 | 1.15 | 5.85 | |||||||||||||
ING International Growth Opportunities Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,156.30 | 1.65 | % | $ | 8.97 | |||||||||
| Class B | 1,000.00 | 1,151.70 | 2.40 | 13.02 | |||||||||||||
| Class C | 1,000.00 | 1,152.40 | 2.40 | 13.02 | |||||||||||||
| Class I | 1,000.00 | 1,159.30 | 1.28 | 6.97 | |||||||||||||
| Class Q | 1,000.00 | 1,157.10 | 1.52 | 8.26 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,016.89 | 1.65 | % | $ | 8.39 | |||||||||
| Class B | 1,000.00 | 1,013.11 | 2.40 | 12.18 | |||||||||||||
| Class C | 1,000.00 | 1,013.11 | 2.40 | 12.18 | |||||||||||||
| Class I | 1,000.00 | 1,018.75 | 1.28 | 6.51 | |||||||||||||
| Class Q | 1,000.00 | 1,017.54 | 1.52 | 7.73 | |||||||||||||
ING International Real Estate Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,063.90 | 1.50 | % | $ | 7.80 | |||||||||
| Class B | 1,000.00 | 1,060.60 | 2.25 | 11.69 | |||||||||||||
| Class C | 1,000.00 | 1,060.10 | 2.25 | 11.68 | |||||||||||||
| Class I | 1,000.00 | 1,065.70 | 1.25 | 6.51 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,017.64 | 1.50 | % | $ | 7.63 | |||||||||
| Class B | 1,000.00 | 1,013.86 | 2.25 | 11.42 | |||||||||||||
| Class C | 1,000.00 | 1,013.86 | 2.25 | 11.42 | |||||||||||||
| Class I | 1,000.00 | 1,018.90 | 1.25 | 6.36 | |||||||||||||
| (1) | Commencement of operations for ING International Equity Dividend Fund was June 28, 2007. Expenses paid reflect the 125-day period ended October 31, 2007. |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year (except “Actual Fund Return” information for all share classes footnoted above). |
50
Table of Contents
| Beginning | Ending | Expenses Paid | |||||||||||||||
| Account | Account | Annualized | During the | ||||||||||||||
| Value | Value | Expense | Period Ended | ||||||||||||||
| ING International SmallCap Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | |||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,109.80 | 1.60 | % | $ | 8.51 | |||||||||
| Class B | 1,000.00 | 1,106.20 | 2.25 | 11.94 | |||||||||||||
| Class C | 1,000.00 | 1,106.40 | 2.25 | 11.95 | |||||||||||||
| Class I | 1,000.00 | 1,112.00 | 1.20 | 6.39 | |||||||||||||
| Class Q | 1,000.00 | 1,110.70 | 1.45 | 7.71 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,017.14 | 1.60 | % | $ | 8.13 | |||||||||
| Class B | 1,000.00 | 1,013.86 | 2.25 | 11.42 | |||||||||||||
| Class C | 1,000.00 | 1,013.86 | 2.25 | 11.42 | |||||||||||||
| Class I | 1,000.00 | 1,019.16 | 1.20 | 6.11 | |||||||||||||
| Class Q | 1,000.00 | 1,017.90 | 1.45 | 7.37 | |||||||||||||
ING International Value Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,039.00 | 1.59 | % | $ | 8.17 | |||||||||
| Class B | 1,000.00 | 1,035.70 | 2.29 | 11.75 | |||||||||||||
| Class C | 1,000.00 | 1,035.90 | 2.28 | 11.70 | |||||||||||||
| Class I | 1,000.00 | 1,041.30 | 1.23 | 6.33 | |||||||||||||
| Class Q | 1,000.00 | 1,041.20 | 1.27 | 6.53 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,017.19 | 1.59 | % | $ | 8.08 | |||||||||
| Class B | 1,000.00 | 1,013.66 | 2.29 | 11.62 | |||||||||||||
| Class C | 1,000.00 | 1,013.71 | 2.28 | 11.57 | |||||||||||||
| Class I | 1,000.00 | 1,019.00 | 1.23 | 6.26 | |||||||||||||
| Class Q | 1,000.00 | 1,018.80 | 1.27 | 6.46 | |||||||||||||
ING International Value Choice Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,123.80 | 1.70 | % | $ | 9.10 | |||||||||
| Class B | 1,000.00 | 1,119.00 | 2.45 | 13.09 | |||||||||||||
| Class C | 1,000.00 | 1,118.70 | 2.45 | 13.08 | |||||||||||||
| Class I | 1,000.00 | 1,125.20 | 1.31 | 7.02 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,016.64 | 1.70 | % | $ | 8.64 | |||||||||
| Class B | 1,000.00 | 1,012.85 | 2.45 | 12.43 | |||||||||||||
| Class C | 1,000.00 | 1,012.85 | 2.45 | 12.43 | |||||||||||||
| Class I | 1,000.00 | 1,018.60 | 1.31 | 6.67 | |||||||||||||
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
51
Table of Contents
| Beginning | Ending | Expenses Paid | |||||||||||||||
| Account | Account | Annualized | During the | ||||||||||||||
| ING International Value Opportunities | Value | Value | Expense | Period Ended | |||||||||||||
| Fund | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | |||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,023.10 | 1.40 | % | $ | 7.14 | |||||||||
| Class B | 1,000.00 | 1,019.25 | 2.15 | 10.94 | |||||||||||||
| Class C | 1,000.00 | 1,016.40 | 2.15 | 10.93 | |||||||||||||
| Class I | 1,000.00 | 1,025.00 | 1.15 | 5.87 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,018.15 | 1.40 | % | $ | 7.12 | |||||||||
| Class B | 1,000.00 | 1,014.37 | 2.15 | 10.92 | |||||||||||||
| Class C | 1,000.00 | 1,014.37 | 2.15 | 10.92 | |||||||||||||
| Class I | 1,000.00 | 1,019.41 | 1.15 | 5.85 | |||||||||||||
ING Russia Fund Fund | |||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 1,221.00 | 1.96 | % | $ | 10.97 | |||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.32 | 1.96 | % | $ | 9.96 | |||||||||
ING Emerging Markets Fixed Income Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,006.40 | 1.20 | % | $ | 6.07 | |||||||||
| Class B | 1,000.00 | 1,002.50 | 1.95 | 9.84 | |||||||||||||
| Class C | 1,000.00 | 1,001.70 | 1.95 | 9.84 | |||||||||||||
| Class I | 1,000.00 | 1,007.20 | 0.92 | 4.65 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,019.16 | 1.20 | % | $ | 6.11 | |||||||||
| Class B | 1,000.00 | 1,015.38 | 1.95 | 9.91 | |||||||||||||
| Class C | 1,000.00 | 1,015.38 | 1.95 | 9.91 | |||||||||||||
| Class I | 1,000.00 | 1,020.57 | 0.92 | 4.69 | |||||||||||||
ING Global Bond Fund | |||||||||||||||||
| Actual Fund Return | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,061.10 | 0.90 | % | $ | 4.68 | |||||||||
| Class B | 1,000.00 | 1,056.70 | 1.65 | 8.55 | |||||||||||||
| Class C | 1,000.00 | 1,057.10 | 1.65 | 8.56 | |||||||||||||
| Class I | 1,000.00 | 1,060.60 | 0.61 | 3.17 | |||||||||||||
| Hypothetical (5% return before expenses) | |||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,020.67 | 0.90 | % | $ | 4.58 | |||||||||
| Class B | 1,000.00 | 1,016.89 | 1.65 | 8.39 | |||||||||||||
| Class C | 1,000.00 | 1,016.89 | 1.65 | 8.39 | |||||||||||||
| Class I | 1,000.00 | 1,022.13 | 0.61 | 3.11 | |||||||||||||
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
52
Table of Contents
| Beginning | Ending | Expenses Paid | ||||||||||||||
| Account | Account | Annualized | During the | |||||||||||||
| Value | Value | Expense | Period Ended | |||||||||||||
| ING Diversified International Fund(1) | May 1, 2007 | October 31, 2007 | Ratio | October 31, 2007* | ||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,117.90 | 0.21 | % | $ | 1.12 | ||||||||
| Class B | 1,000.00 | 1,113.30 | 0.96 | 5.11 | ||||||||||||
| Class C | 1,000.00 | 1,113.40 | 0.96 | 5.11 | ||||||||||||
| Class I | 1,000.00 | 1,117.00 | 0.09 | 0.48 | ||||||||||||
| Class R | 1,000.00 | 1,116.00 | 0.46 | 2.45 | ||||||||||||
| Hypothetical (5% return before expenses) | ||||||||||||||||
| Class A | $ | 1,000.00 | $ | 1,024.15 | 0.21 | % | $ | 1.07 | ||||||||
| Class B | 1,000.00 | 1,020.37 | 0.96 | 4.89 | ||||||||||||
| Class C | 1,000.00 | 1,020.37 | 0.96 | 4.89 | ||||||||||||
| Class I | 1,000.00 | 1,024.75 | 0.09 | 0.46 | ||||||||||||
| Class R | 1,000.00 | 1,022.89 | 0.46 | 2.35 | ||||||||||||
| (1) | The annualized expense ratios do not include expenses of underlying funds. |
| * | Expenses are equal to each Fund’s respective annualized expense rations multiplied by the average account value over the period, multiplied by 184/365 to reflect the most recent fiscal half-year. |
53
Table of Contents
The Shareholders and Board of Directors/Trustees
ING Mutual Funds and ING Mayflower Trust
We have audited the accompanying statements of assets and liabilities, including the portfolio of investments, of ING Global Equity Dividend Fund, ING Global Natural Resources Fund, ING Global Real Estate Fund, ING Global Value Choice Fund, ING Disciplined International SmallCap Fund, ING Emerging Countries Fund, ING Foreign Fund, ING Greater China Fund, ING Index Plus International Equity Fund, ING International Capital Appreciation Fund, ING International Equity Dividend Fund, ING International Growth Opportunities Fund (formerly, ING International Fund), ING International Real Estate Fund, ING International SmallCap Fund, ING International Value Choice Fund, ING International Value Opportunities Fund, ING Russia Fund, ING Emerging Markets Fixed Income Fund, ING Global Bond Fund, ING Diversified International Fund, each a series of ING Mutual Funds, and of ING International Value Fund, a series of ING Mayflower Trust, as of October 31, 2007, and the related statements of operations for the year or period 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, 2007, by correspondence with the custodian, transfer agent, and brokers, or by other appropriate auditing procedures when 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, 2007, 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.
Boston, Massachusetts
54
Table of Contents
| 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+* | $ | 380,210,628 | $ | 157,166,243 | $ | 1,545,117,842 | $ | 125,225,472 | ||||||||||
| Investments in affiliates** | — | — | 2,163,458 | — | ||||||||||||||
| Short-term investments in affiliates at amortized cost | — | 1,250,000 | — | — | ||||||||||||||
| Short-term investments at amortized cost | 13,121,697 | 536,000 | 55,308,136 | 28,006,521 | ||||||||||||||
| Cash | 11,116,010 | 87,162 | 2,351,614 | 468,600 | ||||||||||||||
| Foreign currencies at value*** | 607,663 | 4,834 | 188,257 | 1,307 | ||||||||||||||
| Receivables: | ||||||||||||||||||
| Investment securities sold | 447,053 | 2,885,845 | 7,889,081 | 3,593,217 | ||||||||||||||
| Fund shares sold | 510,095 | 460,319 | 13,772,869 | 232,218 | ||||||||||||||
| Dividends and interest | 657,767 | 159,235 | 2,336,255 | 244,416 | ||||||||||||||
| Prepaid expenses | 44,940 | 20,788 | 85,194 | 15,320 | ||||||||||||||
| Reimbursement due from manager | — | — | — | 4,297 | ||||||||||||||
| Total assets | 406,715,853 | 162,570,426 | 1,629,212,706 | 157,791,368 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
| Payable for investment securities purchased | 943,293 | 4,427,587 | 8,781,947 | 1,953,779 | ||||||||||||||
| Payable for fund shares redeemed | 2,770,332 | 514,975 | 4,649,906 | 281,883 | ||||||||||||||
| Payable upon receipt of securities loaned | 13,121,697 | — | 34,107,610 | 24,568,922 | ||||||||||||||
| Payable to affiliates | 459,973 | 151,838 | 1,598,254 | 186,282 | ||||||||||||||
| Payable for trustee fees | 2,263 | 30,464 | 11,946 | 20,651 | ||||||||||||||
| Other accrued expenses and liabilities | 154,019 | 76,627 | 491,598 | 96,692 | ||||||||||||||
| Total liabilities | 17,451,577 | 5,201,491 | 49,641,261 | 27,108,209 | ||||||||||||||
NET ASSETS | $ | 389,264,276 | $ | 157,368,935 | $ | 1,579,571,445 | $ | 130,683,159 | ||||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||||
| Paid-in capital | $ | 330,827,951 | $ | 99,494,948 | $ | 1,388,170,897 | $ | 266,760,728 | ||||||||||
| Undistributed net investment income (distributions in excess of net investment income) | 2,265,845 | 515,975 | (8,882,330 | ) | 409,172 | |||||||||||||
| Accumulated net realized gain (loss) on investments and foreign currency related transactions | 24,814,616 | 25,855,708 | (34,413,777 | ) | (155,900,934 | ) | ||||||||||||
| Net unrealized appreciation on investments and foreign currency related transactions | 31,355,864 | 31,502,304 | 234,696,655 | 19,414,193 | ||||||||||||||
NET ASSETS | $ | 389,264,276 | $ | 157,368,935 | $ | 1,579,571,445 | $ | 130,683,159 | ||||||||||
| + Including securities loaned at value | $ | 12,887,840 | $ | — | $ | 33,126,917 | $ | 24,078,683 | ||||||||||
| * Cost of investments in securities | $ | 348,874,374 | $ | 125,669,570 | $ | 1,310,364,976 | $ | 105,809,444 | ||||||||||
| ** Cost of investments in affiliates | $ | — | $ | — | $ | 2,242,416 | $ | — | ||||||||||
| *** Cost of foreign currencies | $ | 596,394 | $ | 907 | $ | 192,298 | $ | 1,139 | ||||||||||
55
Table of Contents
| ING | ING | ING | ING | |||||||||||||
| Global | Global | Global | Global | |||||||||||||
| Equity | Natural | Real | Value | |||||||||||||
| Dividend | Resources | Estate | Choice | |||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
| Net assets | $ | 182,668,541 | $ | 157,366,728 | $ | 1,115,492,885 | $ | 58,600,070 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 10,850,076 | 11,096,920 | 46,107,807 | 2,063,173 | ||||||||||||
| Net asset value and redemption price per share | $ | 16.84 | $ | 14.18 | $ | 24.19 | $ | 28.40 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 17.87 | $ | 15.05 | $ | 25.67 | $ | 30.13 | ||||||||
Class B: | ||||||||||||||||
| Net assets | $ | 58,092,990 | n/a | $ | 57,836,746 | $ | 22,049,160 | |||||||||
| Shares authorized | unlimited | n/a | unlimited | unlimited | ||||||||||||
| Par value | $ | — | n/a | $ | — | $ | — | |||||||||
| Shares outstanding | 3,459,855 | n/a | 2,798,731 | 720,915 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 16.79 | n/a | $ | 20.67 | $ | 30.58 | |||||||||
| Maximum offering price per share | $ | 16.79 | n/a | $ | 20.67 | $ | 30.58 | |||||||||
Class C: | ||||||||||||||||
| Net assets | $ | 124,764,967 | n/a | $ | 303,235,115 | $ | 39,536,669 | |||||||||
| Shares authorized | unlimited | n/a | unlimited | unlimited | ||||||||||||
| Par value | $ | — | n/a | $ | — | $ | — | |||||||||
| Shares outstanding | 7,449,034 | n/a | 13,972,989 | 1,454,357 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 16.75 | n/a | $ | 21.70 | $ | 27.18 | |||||||||
| Maximum offering price per share | $ | 16.75 | n/a | $ | 21.70 | $ | 27.18 | |||||||||
Class I: | ||||||||||||||||
| Net assets | $ | 1,084 | $ | 2,207 | $ | 76,869,380 | $ | 7,845,177 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 64 | 156 | 3,175,577 | 274,605 | ||||||||||||
| Net asset value and redemption price per share | $ | 16.83 | $ | 14.19 | $ | 24.21 | $ | 28.57 | ||||||||
| Maximum offering price per share | $ | 16.83 | $ | 14.19 | $ | 24.21 | $ | 28.57 | ||||||||
Class O: | ||||||||||||||||
| Net assets | $ | 23,736,694 | n/a | $ | 26,137,319 | n/a | ||||||||||
| Shares authorized | unlimited | n/a | unlimited | n/a | ||||||||||||
| Par value | $ | — | n/a | $ | — | n/a | ||||||||||
| Shares outstanding | 1,410,620 | n/a | 1,080,622 | n/a | ||||||||||||
| Net asset value and redemption price per share | $ | 16.83 | n/a | $ | 24.19 | n/a | ||||||||||
| Maximum offering price per share | $ | 16.83 | n/a | $ | 24.19 | n/a | ||||||||||
Class Q: | ||||||||||||||||
| Net assets | n/a | n/a | n/a | $ | 2,652,083 | |||||||||||
| 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 | 79,504 | ||||||||||||
| Net asset value and redemption price per share | n/a | n/a | n/a | $ | 33.36 | |||||||||||
| Maximum offering price per share | n/a | n/a | n/a | $ | 33.36 | |||||||||||
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
56
Table of Contents
| ING | ||||||||||||||||||
| Disciplined | ING | ING | ||||||||||||||||
| International | Emerging | ING | Greater | |||||||||||||||
| SmallCap | Countries | Foreign | China | |||||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||||
ASSETS: | ||||||||||||||||||
| Investments in securities at value+* | $ | 464,138,770 | $ | 327,089,236 | $ | 731,317,191 | $ | 91,009,930 | ||||||||||
| Investments in affiliates** | 776,521 | — | — | — | ||||||||||||||
| Short-term investments at amortized cost | — | 53,052,857 | 45,359,653 | — | ||||||||||||||
| Cash | 36,906 | 1,176,805 | 3,619,626 | 2,361,536 | ||||||||||||||
| Foreign currencies at value*** | 1,568,269 | 12 | 12,207,395 | 286,268 | ||||||||||||||
| Receivables: | ||||||||||||||||||
| Investment securities sold | 61,707,185 | — | 7,338,357 | 548,288 | ||||||||||||||
| Fund shares sold | 564,291 | 1,014,826 | 3,061,700 | 1,228,981 | ||||||||||||||
| Dividends and interest | 644,274 | 368,799 | 1,020,266 | 42,849 | ||||||||||||||
| Unrealized appreciation on forward foreign currency contracts | — | — | 4,672,031 | — | ||||||||||||||
| Prepaid expenses | 41,807 | 30,007 | 36,326 | 16,700 | ||||||||||||||
| Total assets | 529,478,023 | 382,732,542 | 808,632,545 | 95,494,552 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
| Payable for investment securities purchased | 62,251,220 | — | 10,025,526 | 1,372,756 | ||||||||||||||
| Payable for fund shares redeemed | 22,539 | 1,063,728 | 694,785 | 275,980 | ||||||||||||||
| Payable upon receipt of securities loaned | — | 50,315,176 | 42,530,983 | — | ||||||||||||||
| Unrealized depreciation on forward foreign currency contracts | — | — | 11,907,888 | — | ||||||||||||||
| Payable to affiliates | 293,225 | 478,766 | 944,620 | 117,381 | ||||||||||||||
| Payable for borrowings against line of credit | 990,000 | — | — | — | ||||||||||||||
| Payable for trustee fees | 3,867 | 23,897 | 2,419 | 3,169 | ||||||||||||||
| Other accrued expenses and liabilities | 130,393 | 206,496 | 305,858 | 69,706 | ||||||||||||||
| Total liabilities | 63,691,244 | 52,088,063 | 66,412,079 | 1,838,992 | ||||||||||||||
NET ASSETS | $ | 465,786,779 | $ | 330,644,479 | $ | 742,220,466 | $ | 93,655,560 | ||||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||||
| Paid-in capital | $ | 438,262,571 | $ | 264,287,494 | $ | 489,025,014 | $ | 52,455,322 | ||||||||||
| Undistributed net investment income | 2,461,339 | 3,092,434 | 6,305,480 | 197,081 | ||||||||||||||
| Accumulated net realized gain on investments and foreign currency related transactions | 2,121,648 | 5,602,333 | 41,007,627 | 7,841,110 | ||||||||||||||
| Net unrealized appreciation on investments and foreign currency related transactions | 22,941,221 | 57,662,218 | 205,882,345 | 33,162,047 | ||||||||||||||
NET ASSETS | $ | 465,786,779 | $ | 330,644,479 | $ | 742,220,466 | $ | 93,655,560 | ||||||||||
| + Including securities loaned at value | $ | — | $ | 49,050,425 | $ | 42,179,200 | $ | — | ||||||||||
| * Cost of investments in securities | $ | 441,359,375 | $ | 269,428,117 | $ | 518,430,647 | $ | 57,848,348 | ||||||||||
| ** Cost of investments in affiliates | $ | 690,771 | $ | — | $ | — | $ | — | ||||||||||
| *** Cost of foreign currencies | $ | 1,528,414 | $ | 12 | $ | 11,998,639 | $ | 285,757 | ||||||||||
57
Table of Contents
| ING | ||||||||||||||||
| Disciplined | ING | ING | ||||||||||||||
| International | Emerging | ING | Greater | |||||||||||||
| SmallCap | Countries | Foreign | China | |||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
| Net assets | $ | 69,155 | $ | 197,307,177 | $ | 349,916,861 | $ | 73,803,879 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 5,719 | 4,756,392 | 14,867,431 | 3,021,198 | ||||||||||||
| Net asset value and redemption price per share | $ | 12.09 | $ | 41.48 | $ | 23.54 | $ | 24.43 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 12.83 | $ | 44.01 | $ | 24.98 | $ | 25.92 | ||||||||
Class B: | ||||||||||||||||
| Net assets | $ | 5,275 | $ | 16,647,881 | $ | 50,276,178 | $ | 7,413,614 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 439 | 409,383 | 2,207,476 | 307,046 | ||||||||||||
Net asset value and redemption price per share (2) | $ | 12.02 | $ | 40.67 | $ | 22.78 | $ | 24.14 | ||||||||
| Maximum offering price per share | $ | 12.02 | $ | 40.67 | $ | 22.78 | $ | 24.14 | ||||||||
Class C: | ||||||||||||||||
| Net assets | $ | 55,462 | $ | 53,885,255 | $ | 232,439,228 | $ | 12,386,241 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 4,614 | 1,401,356 | 10,189,955 | 512,625 | ||||||||||||
Net asset value and redemption price per share (2) | $ | 12.02 | $ | 38.45 | $ | 22.81 | $ | 24.16 | ||||||||
| Maximum offering price per share | $ | 12.02 | $ | 38.45 | $ | 22.81 | $ | 24.16 | ||||||||
Class I: | ||||||||||||||||
| Net assets | $ | 465,656,887 | $ | 41,550,997 | $ | 108,732,176 | $ | 51,826 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 38,400,790 | 998,078 | 4,547,442 | 2,118 | ||||||||||||
| Net asset value and redemption price per share | $ | 12.13 | $ | 41.63 | $ | 23.91 | $ | 24.46 | ||||||||
| Maximum offering price per share | $ | 12.13 | $ | 41.63 | $ | 23.91 | $ | 24.46 | ||||||||
Class Q: | ||||||||||||||||
| Net assets | n/a | $ | 21,253,169 | $ | 856,023 | n/a | ||||||||||
| Shares authorized | n/a | unlimited | unlimited | n/a | ||||||||||||
| Par value | n/a | $ | — | $ | — | n/a | ||||||||||
| Shares outstanding | n/a | 495,151 | 36,228 | n/a | ||||||||||||
| Net asset value and redemption price per share | n/a | $ | 42.92 | $ | 23.63 | n/a | ||||||||||
| Maximum offering price per share | n/a | $ | 42.92 | $ | 23.63 | n/a | ||||||||||
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
58
Table of Contents
| ING | ||||||||||||||||||
| Index | ING | ING | ING | |||||||||||||||
| Plus | International | International | International | |||||||||||||||
| International | Capital | Equity | Growth | |||||||||||||||
| Equity | Appreciation | Dividend | Opportunities | |||||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||||
ASSETS: | ||||||||||||||||||
| Investments in securities at value+* | $ | 117,320,552 | $ | 145,751,886 | $ | 56,517,060 | $ | 140,518,941 | ||||||||||
| Investments in affiliates** | 35,251 | — | — | — | ||||||||||||||
| Short-term investments in affiliates at amortized cost | — | — | — | 4,000,000 | ||||||||||||||
| Short-term investments at amortized cost | — | — | — | 7,816,040 | ||||||||||||||
| Cash | 3,719,924 | 76,305 | 11,571,251 | 16,571 | ||||||||||||||
| Foreign currencies at value*** | 1,118,211 | — | 11,180 | 2,398,299 | ||||||||||||||
| Receivables: | ||||||||||||||||||
| Investment securities sold | — | 3,059,712 | 804,986 | — | ||||||||||||||
| Fund shares sold | 733,656 | 902,300 | 425,382 | 117,376 | ||||||||||||||
| Dividends and interest | 239,747 | 192,253 | 48,930 | 245,042 | ||||||||||||||
| Prepaid expenses | 14,263 | 12,933 | 66,784 | 16,992 | ||||||||||||||
| Reimbursement due from manager | — | — | 14,987 | — | ||||||||||||||
| Total assets | 123,181,604 | 149,995,389 | 69,460,560 | 155,129,261 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
| Payable for investment securities purchased | — | 2,373,586 | 8,037,932 | 3,469,377 | ||||||||||||||
| Payable for fund shares redeemed | — | — | 8,751 | 232,790 | ||||||||||||||
| Payable upon receipt of securities loaned | — | — | — | 7,242,040 | ||||||||||||||
| Payable to affiliates | 102,136 | 142,966 | 37,859 | 179,232 | ||||||||||||||
| Payable to custodian due to foreign currency overdraft | — | 85 | — | — | ||||||||||||||
| Payable for trustee fees | 2,309 | 586 | 996 | 14,923 | ||||||||||||||
| Other accrued expenses and liabilities | 59,732 | 71,939 | 68,731 | 75,213 | ||||||||||||||
| Accrued foreign taxes on capital gains | — | — | — | 87,177 | ||||||||||||||
| Total liabilities | 164,177 | 2,589,162 | 8,154,269 | 11,300,752 | ||||||||||||||
NET ASSETS | $ | 123,017,427 | $ | 147,406,227 | $ | 61,306,291 | $ | 143,828,509 | ||||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||||
| Paid-in capital | $ | 95,506,029 | $ | 114,396,971 | $ | 57,546,497 | $ | 99,080,043 | ||||||||||
| Undistributed net investment income | 2,158,663 | 1,765,493 | 314,015 | 118,948 | ||||||||||||||
| Accumulated net realized gain on investments and foreign currency related transactions | 11,664,129 | 3,474,484 | 16,140 | 19,287,969 | ||||||||||||||
| Net unrealized appreciation on investments and foreign currency related transactions | 13,688,606 | 27,769,279 | 3,429,639 | 25,341,549 | ||||||||||||||
NET ASSETS | $ | 123,017,427 | $ | 147,406,227 | $ | 61,306,291 | $ | 143,828,509 | ||||||||||
| + Including securities loaned at value | $ | — | $ | — | $ | — | $ | 7,191,354 | ||||||||||
| * Cost of investments in securities | $ | 103,680,495 | $ | 117,981,825 | $ | 53,086,892 | $ | 115,201,177 | ||||||||||
| ** Cost of investments in affiliates | $ | 24,165 | $ | — | $ | — | $ | — | ||||||||||
| *** Cost of foreign currencies | $ | 1,085,171 | $ | — | $ | 10,480 | $ | 2,404,089 | ||||||||||
59
Table of Contents
| ING | ||||||||||||||||
| Index | ING | ING | ING | |||||||||||||
| Plus | International | International | International | |||||||||||||
| International | Capital | Equity | Growth | |||||||||||||
| Equity | Appreciation | Dividend | Opportunities | |||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
| Net assets | $ | 2,233,348 | $ | 4,591,591 | $ | 4,122,054 | $ | 64,630,896 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 160,154 | 309,089 | 389,938 | 4,139,245 | ||||||||||||
| Net asset value and redemption price per share | $ | 13.95 | $ | 14.86 | $ | 10.57 | $ | 15.61 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 14.80 | $ | 15.77 | $ | 11.21 | $ | 16.56 | ||||||||
Class B: | ||||||||||||||||
| Net assets | $ | 734,225 | $ | 942,762 | $ | 238,647 | $ | 17,310,990 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 52,819 | 64,265 | 22,620 | 1,157,313 | ||||||||||||
Net asset value and redemption price per share (2) | $ | 13.90 | $ | 14.67 | $ | 10.55 | $ | 14.96 | ||||||||
| Maximum offering price per share | $ | 13.90 | $ | 14.67 | $ | 10.55 | $ | 14.96 | ||||||||
Class C: | ||||||||||||||||
| Net assets | $ | 1,126,049 | $ | 971,036 | $ | 1,334,243 | $ | 19,104,150 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 81,069 | 66,010 | 126,454 | 1,276,489 | ||||||||||||
Net asset value and redemption price per share (2) | $ | 13.89 | $ | 14.71 | $ | 10.55 | $ | 14.97 | ||||||||
| Maximum offering price per share | $ | 13.89 | $ | 14.71 | $ | 10.55 | $ | 14.97 | ||||||||
Class I: | ||||||||||||||||
| Net assets | $ | 118,923,805 | $ | 140,900,838 | $ | 55,611,347 | $ | 10,250,762 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | — | $ | — | ||||||||
| Shares outstanding | 8,457,686 | 9,457,523 | 5,257,670 | 658,522 | ||||||||||||
| Net asset value and redemption price per share | $ | 14.06 | $ | 14.90 | $ | 10.58 | $ | 15.57 | ||||||||
| Maximum offering price per share | $ | 14.06 | $ | 14.90 | $ | 10.58 | $ | 15.57 | ||||||||
Class Q: | ||||||||||||||||
| Net assets | n/a | n/a | n/a | $ | 32,531,711 | |||||||||||
| 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 | 2,102,937 | ||||||||||||
| Net asset value and redemption price per share | n/a | n/a | n/a | $ | 15.47 | |||||||||||
| Maximum offering price per share | n/a | n/a | n/a | $ | 15.47 | |||||||||||
| (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. |
60
Table of Contents
| ING | ING | ING | ING | |||||||||||||||
| International | International | International | International | |||||||||||||||
| Real Estate | SmallCap | Value | Value Choice | |||||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||||
ASSETS: | ||||||||||||||||||
| Investments in securities at value+* | $ | 518,180,363 | $ | 1,175,127,914 | $ | 5,283,164,048 | $ | 80,824,194 | ||||||||||
| Short-term investments at amortized cost | 7,778,093 | 41,338,940 | 287,199,983 | 9,544,886 | ||||||||||||||
| Cash | 895,008 | 2,528,104 | 11,322,030 | — | ||||||||||||||
| Foreign currencies at value** | 125,156 | 6,498,961 | 569,298 | 85,607 | ||||||||||||||
| Receivables: | ||||||||||||||||||
| Investment securities sold | 1,473,862 | 8,698,503 | 15,680,498 | 757,802 | ||||||||||||||
| Fund shares sold | 5,826,857 | 6,074,096 | 4,011,372 | 381,854 | ||||||||||||||
| Dividends and interest | 1,194,040 | 1,692,989 | 14,904,834 | 191,182 | ||||||||||||||
| Prepaid expenses | 21,521 | 49,897 | 37,781 | 9,060 | ||||||||||||||
| Total assets | 535,494,900 | 1,242,009,404 | 5,616,889,844 | 91,794,585 | ||||||||||||||
LIABILITIES: | ||||||||||||||||||
| Payable for investment securities purchased | 1,779,295 | 2,500,772 | 12,771,655 | 319,390 | ||||||||||||||
| Payable for fund shares redeemed | 1,062,653 | 1,865,700 | 9,233,004 | 21,405 | ||||||||||||||
| Payable upon receipt of securities loaned | — | 34,544,733 | 186,972,678 | — | ||||||||||||||
| Payable to affiliates | 638,261 | 1,341,095 | 6,394,948 | 152,627 | ||||||||||||||
| Payable to custodian due to bank overdraft | — | — | — | 5,500,572 | ||||||||||||||
| Payable for trustee fees | 1,193 | 6,373 | 54,607 | 2,298 | ||||||||||||||
| Other accrued expenses and liabilities | 212,297 | 415,443 | 2,685,478 | 51,791 | ||||||||||||||
| Accrued foreign taxes on capital gains | — | 27,869 | — | — | ||||||||||||||
| Total liabilities | 3,693,699 | 40,701,985 | 218,112,370 | 6,048,083 | ||||||||||||||
NET ASSETS | $ | 531,801,201 | $ | 1,201,307,419 | $ | 5,398,777,474 | $ | 85,746,502 | ||||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||||||
| Paid-in capital | $ | 466,099,055 | $ | 846,695,593 | $ | 3,353,512,963 | $ | 65,254,402 | ||||||||||
| Undistributed net investment income | 18,780,674 | 6,310,276 | 52,954,318 | 809,824 | ||||||||||||||
| Accumulated net realized gain (loss) on investments and foreign currency related transactions | (27,549,706 | ) | 137,343,706 | 774,333,364 | 11,193,729 | |||||||||||||
| Net unrealized appreciation on investments and foreign currency related transactions | 74,471,178 | 210,957,844 | 1,217,976,829 | 8,488,547 | ||||||||||||||
NET ASSETS | $ | 531,801,201 | $ | 1,201,307,419 | $ | 5,398,777,474 | $ | 85,746,502 | ||||||||||
| + Including securities loaned at value | $ | — | $ | 33,222,926 | $ | 176,481,982 | $ | — | ||||||||||
| * Cost of investments in securities | $ | 443,723,019 | $ | 963,978,916 | $ | 4,065,392,162 | $ | 72,335,153 | ||||||||||
| ** Cost of foreign currencies | $ | 126,263 | $ | 6,715,412 | $ | 558,598 | $ | 85,607 | ||||||||||
61
Table of Contents
| ING | ING | ING | ING | |||||||||||||
| International | International | International | International | |||||||||||||
| Real Estate | SmallCap | Value | Value Choice | |||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||
Class A: | ||||||||||||||||
| Net assets | $ | 271,424,710 | $ | 523,535,375 | $ | 2,136,218,430 | $ | 16,598,376 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | 0.01 | $ | — | ||||||||
| Shares outstanding | 18,644,242 | 7,880,751 | 92,259,696 | 1,115,068 | ||||||||||||
| Net asset value and redemption price per share | $ | 14.56 | $ | 66.43 | $ | 23.15 | $ | 14.89 | ||||||||
Maximum offering price per share (5.75%)(1) | $ | 15.45 | $ | 70.48 | $ | 24.56 | $ | 15.80 | ||||||||
Class B: | ||||||||||||||||
| Net assets | $ | 11,818,903 | $ | 65,618,718 | $ | 301,704,541 | $ | 3,805,255 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | 0.01 | $ | — | ||||||||
| Shares outstanding | 815,251 | 960,661 | 13,326,059 | 259,366 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 14.50 | $ | 68.31 | $ | 22.64 | $ | 14.67 | ||||||||
| Maximum offering price per share | $ | 14.50 | $ | 68.31 | $ | 22.64 | $ | 14.67 | ||||||||
Class C: | ||||||||||||||||
| Net assets | $ | 121,528,798 | $ | 104,274,348 | $ | 757,941,313 | $ | 4,930,266 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | 0.01 | $ | — | ||||||||
| Shares outstanding | 8,388,631 | 1,668,986 | 33,660,631 | 335,299 | ||||||||||||
Net asset value and redemption price per share(2) | $ | 14.49 | $ | 62.48 | $ | 22.52 | $ | 14.70 | ||||||||
| Maximum offering price per share | $ | 14.49 | $ | 62.48 | $ | 22.52 | $ | 14.70 | ||||||||
Class I: | ||||||||||||||||
| Net assets | $ | 127,028,790 | $ | 376,737,277 | $ | 2,176,401,627 | $ | 60,412,605 | ||||||||
| Shares authorized | unlimited | unlimited | unlimited | unlimited | ||||||||||||
| Par value | $ | — | $ | — | $ | 0.01 | $ | — | ||||||||
| Shares outstanding | 8,710,813 | 5,646,326 | 93,723,403 | 4,049,889 | ||||||||||||
| Net asset value and redemption price per share | $ | 14.58 | $ | 66.72 | $ | 23.22 | $ | 14.92 | ||||||||
| Maximum offering price per share | $ | 14.58 | $ | 66.72 | $ | 23.22 | $ | 14.92 | ||||||||
Class Q: | ||||||||||||||||
| Net assets | n/a | $ | 131,141,701 | $ | 26,511,563 | n/a | ||||||||||
| Shares authorized | n/a | unlimited | unlimited | n/a | ||||||||||||
| Par value | n/a | $ | — | $ | 0.01 | n/a | ||||||||||
| Shares outstanding | n/a | 1,836,399 | 1,139,798 | n/a | ||||||||||||
| Net asset value and redemption price per share | n/a | $ | 71.41 | $ | 23.26 | n/a | ||||||||||
| Maximum offering price per share | n/a | $ | 71.41 | $ | 23.26 | n/a | ||||||||||
| (1) | Maximum offering price is computed at 100/94.25 of net asset value. On purchases of $50,000 or more, the offering price is reduced. |
| (2) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
62
Table of Contents
| ING | ING | |||||||||||||
| International | Emerging | |||||||||||||
| Value | ING | Markets | ||||||||||||
| Opportunities | Russia | Fixed Income | ||||||||||||
| Fund | Fund | Fund | ||||||||||||
ASSETS: | ||||||||||||||
| Investments in securities at value+* | $ | 10,424,810 | $ | 912,272,496 | $ | 284,317,370 | ||||||||
| Short-term investments at amortized cost | — | 113,588,003 | — | |||||||||||
| Cash | 302,625 | 7,094,009 | 31,228,115 | |||||||||||
| Cash collateral for futures | — | — | 12,000 | |||||||||||
| Receivables: | ||||||||||||||
| Investment securities sold | — | — | 1,548,038 | |||||||||||
| Fund shares sold | 10,245 | 4,244,908 | 615,951 | |||||||||||
| Dividends and interest | 28,599 | 2,980,146 | 4,543,148 | |||||||||||
| Prepaid expenses | 58,052 | 29,709 | 14,502 | |||||||||||
| Reimbursement due from manager | 49,855 | — | — | |||||||||||
| Total assets | 10,874,186 | 1,040,209,271 | 322,279,124 | |||||||||||
LIABILITIES: | ||||||||||||||
| Payable for investment securities purchased | — | — | 6,230,165 | |||||||||||
| Payable for fund shares redeemed | — | 1,980,421 | 18,693 | |||||||||||
| Payable for futures variation margin | — | — | 10,000 | |||||||||||
| Payable upon receipt of securities loaned | — | 113,588,003 | — | |||||||||||
| Payable to affiliates | 9,709 | 1,193,174 | 307,733 | |||||||||||
| Payable to custodian due to foreign currency overdraft** | 71,875 | — | 378 | |||||||||||
| Payable for trustee fees | 563 | 18,408 | 1,838 | |||||||||||
| Other accrued expenses and liabilities | 89,459 | 925,525 | 47,898 | |||||||||||
| Total liabilities | 171,606 | 117,705,531 | 6,616,705 | |||||||||||
NET ASSETS | $ | 10,702,580 | $ | 922,503,740 | $ | 315,662,419 | ||||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||||||
| Paid-in capital | $ | 10,044,846 | $ | 336,276,208 | $ | 315,654,339 | ||||||||
| Undistributed net investment income | 200,203 | — | — | |||||||||||
| Accumulated net realized gain (loss) on investments, foreign currency related transactions, and futures | 44,217 | 137,052,678 | (665,848 | ) | ||||||||||
| Net unrealized appreciation on investments, foreign currency related transactions, and futures | 413,314 | 449,174,854 | 673,928 | |||||||||||
NET ASSETS | $ | 10,702,580 | $ | 922,503,740 | $ | 315,662,419 | ||||||||
| + Including securities loaned at value | $ | — | $ | 112,622,319 | $ | — | ||||||||
| * Cost of investments in securities | $ | 10,011,028 | $ | 463,098,883 | $ | 283,649,478 | ||||||||
| ** Cost of foreign currency overdraft | $ | 70,755 | $ | — | $ | 254 | ||||||||
63
Table of Contents
| ING | ING | |||||||||||
| International | Emerging | |||||||||||
| Value | ING | Markets | ||||||||||
| Opportunities | Russia | Fixed Income | ||||||||||
| Fund | Fund | Fund | ||||||||||
Class A: | ||||||||||||
| Net assets | $ | 10,670,939 | $ | 922,503,740 | $ | 10,538,732 | ||||||
| Shares authorized | unlimited | unlimited | unlimited | |||||||||
| Par value | $ | — | $ | — | $ | — | ||||||
| Shares outstanding | 1,002,694 | 11,807,404 | 1,014,253 | |||||||||
| Net asset value and redemption price per share | $ | 10.64 | $ | 78.13 | $ | 10.39 | ||||||
| Maximum offering price per share | $ | 11.29 | (1) | $ | 82.90 | (1) | $ | 10.66 | (2) | |||
Class B: | ||||||||||||
| Net assets | $ | 2,065 | n/a | $ | 403,768 | |||||||
| Shares authorized | unlimited | n/a | unlimited | |||||||||
| Par value | $ | — | n/a | $ | — | |||||||
| Shares outstanding | 195 | n/a | 38,975 | |||||||||
Net asset value and redemption price per share(3) | $ | 10.59 | n/a | $ | 10.36 | |||||||
| Maximum offering price per share | $ | 10.59 | n/a | $ | 10.36 | |||||||
Class C: | ||||||||||||
| Net assets | $ | 28,488 | n/a | $ | 1,564,276 | |||||||
| Shares authorized | unlimited | n/a | �� | unlimited | ||||||||
| Par value | $ | — | n/a | $ | — | |||||||
| Shares outstanding | 2,697 | n/a | 151,072 | |||||||||
Net asset value and redemption price per share(3) | $ | 10.56 | n/a | $ | 10.35 | |||||||
| Maximum offering price per share | $ | 10.56 | n/a | $ | 10.35 | |||||||
Class I: | ||||||||||||
| Net assets | $ | 1,088 | n/a | $ | 303,155,643 | |||||||
| Shares authorized | unlimited | n/a | unlimited | |||||||||
| Par value | $ | — | n/a | $ | — | |||||||
| Shares outstanding | 102 | n/a | 29,257,839 | |||||||||
| Net asset value and redemption price per share | $ | 10.67 | n/a | $ | 10.36 | |||||||
| Maximum offering price per share | $ | 10.67 | n/a | $ | 10.36 | |||||||
| (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 $99,999 or more, the offering price is reduced. |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
64
Table of Contents
| ING | ING | |||||||||
| Global | Diversified | |||||||||
| Bond | International | |||||||||
| Fund | Fund | |||||||||
ASSETS: | ||||||||||
| Investments in securities at value* | $ | 29,921,855 | $ | — | ||||||
| Investments in affiliates** | — | 595,517,365 | ||||||||
| Short-term investments*** | 104,353 | — | ||||||||
| Short-term investments in affiliates at amortized cost | 2,000,000 | — | ||||||||
| Short-term investments at amortized cost | 370,000 | — | ||||||||
| Cash | 93,552 | 675,576 | ||||||||
| Cash collateral for futures | 159,645 | — | ||||||||
| Foreign currencies at value**** | 1,070,965 | — | ||||||||
| Receivables: | ||||||||||
| Investment securities sold | 1,732,753 | — | ||||||||
| Fund shares sold | 190,025 | 4,476,480 | ||||||||
| Dividends and interest | 257,757 | — | ||||||||
| Variation margin receivable | 14,134 | — | ||||||||
| Unrealized appreciation on forward foreign currency contracts | 47,124 | — | ||||||||
| Upfront payments made on swap agreements | 42,066 | — | ||||||||
| Unrealized appreciation on swap agreements | 10,616 | — | ||||||||
| Prepaid expenses | 21,415 | 32,363 | ||||||||
| Reimbursement due from manager | 11,967 | 177,746 | ||||||||
| Total assets | 36,048,227 | 600,879,530 | ||||||||
LIABILITIES: | ||||||||||
| Payable for investment securities purchased | 4,933,394 | 3,049,370 | ||||||||
| Payable for fund shares redeemed | — | 1,219,068 | ||||||||
| Payable for futures variation margin | 52,210 | — | ||||||||
| Unrealized depreciation on forward foreign currency contracts | 46,222 | — | ||||||||
| Unrealized depreciation on swap agreements | 45,785 | — | ||||||||
| Income distribution payable | 63,795 | — | ||||||||
| Payable to affiliates | 19,862 | 295,188 | ||||||||
| Payable for trustee fees | 703 | 2,522 | ||||||||
| Other accrued expenses and liabilities | 28,823 | 157,954 | ||||||||
| Total liabilities | 5,190,794 | 4,724,102 | ||||||||
NET ASSETS | $ | 30,857,433 | $ | 596,155,428 | ||||||
NET ASSETS WERE COMPRISED OF: | ||||||||||
| Paid-in capital | $ | 29,233,014 | $ | 475,313,793 | ||||||
| Undistributed net investment income | 24,974 | 3,523,584 | ||||||||
| Accumulated net realized gain on investments, foreign currency related transactions, futures, and swaps | 430,722 | 2,075,783 | ||||||||
| Net unrealized appreciation on investments, foreign currency related transactions, futures, and swaps | 1,168,723 | 115,242,268 | ||||||||
NET ASSETS | $ | 30,857,433 | $ | 596,155,428 | ||||||
| * Cost of investments in securities | $ | 28,677,880 | $ | — | ||||||
| ** Cost of investments in affiliates | $ | — | $ | 480,275,097 | ||||||
| *** Cost of short-term investments | $ | 98,492 | $ | — | ||||||
| **** Cost of foreign currencies | $ | 1,049,778 | $ | — | ||||||
65
Table of Contents
| ING | ING | |||||||
| Global | Diversified | |||||||
| Bond | International | |||||||
| Fund | Fund | |||||||
Class A: | ||||||||
| Net assets | $ | 28,887,227 | $ | 383,364,417 | ||||
| Shares authorized | unlimited | unlimited | ||||||
| Par value | $ | — | $ | — | ||||
| Shares outstanding | 2,727,191 | 25,593,908 | ||||||
| Net asset value and redemption price per share | $ | 10.59 | $ | 14.98 | ||||
| Maximum offering price per share | $ | 10.86 | (1) | $ | 15.89 | (2) | ||
Class B: | ||||||||
| Net assets | $ | 342,026 | $ | 43,666,589 | ||||
| Shares authorized | unlimited | unlimited | ||||||
| Par value | $ | — | $ | — | ||||
| Shares outstanding | 32,408 | 2,941,635 | ||||||
Net asset value and redemption price per share(3) | $ | 10.55 | $ | 14.84 | ||||
| Maximum offering price per share | $ | 10.55 | $ | 14.84 | ||||
Class C: | ||||||||
| Net assets | $ | 1,627,100 | $ | 168,660,597 | ||||
| Shares authorized | unlimited | unlimited | ||||||
| Par value | $ | — | $ | — | ||||
| Shares outstanding | 153,591 | 11,370,038 | ||||||
Net asset value and redemption price per share(3) | $ | 10.59 | $ | 14.83 | ||||
| Maximum offering price per share | $ | 10.59 | $ | 14.83 | ||||
Class I: | ||||||||
| Net assets | $ | 1,080 | $ | 31,744 | ||||
| Shares authorized | unlimited | unlimited | ||||||
| Par value | $ | — | $ | — | ||||
| Shares outstanding | 102 | 2,118 | ||||||
| Net asset value and redemption price per share | $ | 10.58 | $ | 14.99 | ||||
| Maximum offering price per share | $ | 10.58 | $ | 14.99 | ||||
Class R: | ||||||||
| Net assets | n/a | $ | 432,081 | |||||
| Shares authorized | n/a | unlimited | ||||||
| Par value | n/a | $ | — | |||||
| Shares outstanding | n/a | 29,154 | ||||||
| Net asset value and redemption price per share | n/a | $ | 14.82 | |||||
| Maximum offering price per share | n/a | $ | 14.82 | |||||
| (1) | Maximum offering price is 2.50% and is computed at 100/97.50 of net asset value. On purchases of $99,000 or more, the offering price is reduced. |
| (2) | Maximum offering price is 5.75% and is computed at 100/94.25 of net asset value. On purchases of $100,000 or more, the offering price is reduced. |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charges. |
66
Table of Contents
| 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) | $ | 15,249,352 | $ | 1,486,434 | $ | 25,033,240 | $ | 1,929,473 | |||||||||
Interest(2) | 121,878 | 32,086 | 1,666,839 | 181,472 | |||||||||||||
| Securities lending income | 39,834 | — | 85,719 | 77,942 | |||||||||||||
| Total investment income | 15,411,064 | 1,518,520 | 26,785,798 | 2,188,887 | |||||||||||||
EXPENSES: | |||||||||||||||||
| Investment management fees | 2,362,456 | 1,108,141 | 8,742,056 | 1,178,791 | |||||||||||||
| Distribution and service fees: | |||||||||||||||||
| Class A | 404,905 | 327,712 | 2,125,405 | 181,879 | |||||||||||||
| Class B | 543,912 | — | 511,847 | 215,859 | |||||||||||||
| Class C | 1,075,740 | — | 2,340,631 | 355,817 | |||||||||||||
| Class O | 33,913 | — | 50,885 | — | |||||||||||||
| Class Q | — | — | — | 6,929 | |||||||||||||
| Transfer agent fees: | |||||||||||||||||
| Class A | 179,432 | 147,785 | 1,077,758 | 88,156 | |||||||||||||
| Class B | 60,857 | — | 65,039 | 39,216 | |||||||||||||
| Class C | 120,821 | — | 295,844 | 61,547 | |||||||||||||
| Class I | — | — | 7,046 | 166 | |||||||||||||
| Class O | 15,130 | — | 25,150 | — | |||||||||||||
| Class Q | — | — | — | 88 | |||||||||||||
| Administrative service fees | 337,490 | 131,084 | 1,186,353 | 117,878 | |||||||||||||
| Shareholder reporting expense | 92,402 | 71,539 | 392,968 | 35,171 | |||||||||||||
| Registration fees | 72,828 | 31,973 | 164,562 | 69,272 | |||||||||||||
| Professional fees | 33,959 | 18,005 | 93,083 | 19,655 | |||||||||||||
| Custody and accounting expense | 111,963 | 29,565 | 328,583 | 30,060 | |||||||||||||
| Trustee fees | 9,682 | 2,920 | 39,285 | 3,770 | |||||||||||||
| Miscellaneous expense | 12,264 | 13,691 | 27,931 | 9,258 | |||||||||||||
| Interest expense | — | 4,134 | 1,554 | 225 | |||||||||||||
| Total expenses | 5,467,754 | 1,886,549 | 17,475,980 | 2,413,737 | |||||||||||||
| Net recouped (waived and reimbursed) fees | — | (270 | ) | — | 62,559 | ||||||||||||
| Brokerage commission recapture | — | — | — | (8,235 | ) | ||||||||||||
| Net expenses | 5,467,754 | 1,886,279 | 17,475,980 | 2,468,061 | |||||||||||||
| Net investment income (loss) | 9,943,310 | (367,759 | ) | 9,309,818 | (279,174 | ) | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS: | |||||||||||||||||
| Net realized gain (loss) on: | |||||||||||||||||
| Investments | 27,990,133 | 26,961,865 | 4,542,977 | 20,455,275 | |||||||||||||
| Foreign currency related transactions | (178,478 | ) | (7,748 | ) | (1,504,674 | ) | (51,888 | ) | |||||||||
| Net realized gain on investments and foreign currency related transactions | 27,811,655 | 26,954,117 | 3,038,303 | 20,403,387 | |||||||||||||
| Net change in unrealized appreciation or depreciation on: | |||||||||||||||||
| Investments | 6,742,472 | 21,656,912 | 111,739,151 | 11,094,604 | |||||||||||||
| Foreign currency related transactions | 19,424 | 5,857 | 9,806 | (4,805 | ) | ||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 6,761,896 | 21,662,769 | 111,748,957 | 11,089,799 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | 34,573,551 | 48,616,886 | 114,787,260 | 31,493,186 | |||||||||||||
Increase in net assets resulting from operations | $ | 44,516,861 | $ | 48,249,127 | $ | 124,097,078 | $ | 31,214,012 | |||||||||
| * Foreign taxes withheld | $ | 1,014,582 | $ | 63,869 | $ | 2,517,234 | $ | 129,550 | |||||||||
| (1) Dividends from affiliates | $ | — | $ | — | $ | 155,032 | $ | — | |||||||||
| (2) Affiliated income | $ | — | $ | 18,055 | $ | — | $ | — | |||||||||
67
Table of Contents
| ING | |||||||||||||||||
| Disciplined | |||||||||||||||||
| International | ING | ING | |||||||||||||||
| SmallCap | Emerging | ING | Greater | ||||||||||||||
| Fund | Countries | Foreign | China | ||||||||||||||
| Fund | Fund | Fund | |||||||||||||||
| December 20, | |||||||||||||||||
| 2006(2) to | Year Ended | Year Ended | Year Ended | ||||||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2007 | 2007 | 2007 | ||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||
Dividends, net of foreign taxes withheld*(1) | $ | 3,458,367 | $ | 8,464,676 | $ | 12,413,094 | $ | 1,260,220 | |||||||||
| Interest | 251,109 | 351,221 | 364,665 | 342 | |||||||||||||
| Securities lending income | — | 115,011 | 34,763 | — | |||||||||||||
| Total investment income | 3,709,476 | 8,930,908 | 12,812,522 | 1,260,562 | |||||||||||||
EXPENSES: | |||||||||||||||||
| Investment management fees | 1,032,086 | 3,416,325 | 5,887,250 | 592,623 | |||||||||||||
| Distribution and service fees: | |||||||||||||||||
| Class A | 91 | 575,976 | 695,652 | 106,056 | |||||||||||||
| Class B | 34 | 155,941 | 437,360 | 40,605 | |||||||||||||
| Class C | 226 | 448,559 | 1,919,297 | 50,193 | |||||||||||||
| Class M | — | 1,986 | — | — | |||||||||||||
| Class Q | — | 39,841 | 2,765 | — | |||||||||||||
| Transfer agent fees: | |||||||||||||||||
| Class A | 1 | 195,494 | 245,434 | 57,621 | |||||||||||||
| Class B | — | 18,043 | 38,601 | 5,530 | |||||||||||||
| Class C | — | 55,763 | 170,025 | 6,876 | |||||||||||||
| Class I | 3,056 | 11,143 | 846 | 42 | |||||||||||||
| Class M | — | 572 | — | — | |||||||||||||
| Class Q | — | 5,292 | — | — | |||||||||||||
| Administrative service fees | 172,012 | 273,303 | 598,695 | 51,532 | |||||||||||||
| Shareholder reporting expense | 20,189 | 60,808 | 117,748 | 11,722 | |||||||||||||
| Registration fees | 8,248 | 83,625 | 95,751 | 54,069 | |||||||||||||
| Professional fees | 14,941 | 50,411 | 65,569 | 7,169 | |||||||||||||
| Custody and accounting expense | 152,270 | 256,660 | 418,612 | 59,210 | |||||||||||||
| Trustee fees | 5,223 | 5,110 | 16,355 | 2,825 | |||||||||||||
| Offering expense | 67,671 | — | — | — | |||||||||||||
| Miscellaneous expense | 3,920 | 10,017 | 21,772 | 4,289 | |||||||||||||
| Interest expense | 541 | 3,414 | 1,018 | — | |||||||||||||
| Total expenses | 1,480,509 | 5,668,283 | 10,732,750 | 1,050,362 | |||||||||||||
| Net waived and reimbursed fees | — | (164,554 | ) | (4,906 | ) | — | |||||||||||
| Brokerage commission recapture | — | (89,449 | ) | (1,129 | ) | — | |||||||||||
| Net expenses | 1,480,509 | 5,414,280 | 10,726,715 | 1,050,362 | |||||||||||||
| Net investment income | 2,228,967 | 3,516,628 | 2,085,807 | 210,200 | |||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS: | |||||||||||||||||
| Net realized gain (loss) on: | |||||||||||||||||
| Investments | 2,547,210 | 47,272,214 | 52,020,606 | 7,918,394 | |||||||||||||
| Foreign currency related transactions | (264,707 | ) | (404,375 | ) | (5,000,473 | ) | (8,217 | ) | |||||||||
| Net realized gain on investments and foreign currency related transactions | 2,282,503 | 46,867,839 | 47,020,133 | 7,910,177 | |||||||||||||
| Net change in unrealized appreciation or depreciation on: | |||||||||||||||||
| Investments | 22,865,145 | 39,651,202 | 118,209,890 | 29,641,707 | |||||||||||||
| Foreign currency related transactions | 76,076 | (1,114 | ) | (6,291,565 | ) | 520 | |||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 22,941,221 | 39,650,088 | 111,918,325 | 29,642,227 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | 25,223,724 | 86,517,927 | 158,938,458 | 37,552,404 | |||||||||||||
Increase in net assets resulting from operations | $ | 27,452,691 | $ | 90,034,555 | $ | 161,024,265 | $ | 37,762,604 | |||||||||
| * Foreign taxes withheld | $ | 274,271 | $ | 1,249,105 | $ | 1,469,432 | $ | 118,869 | |||||||||
| (1) Dividends from affiliates | $ | 14,439 | $ | — | $ | — | $ | — | |||||||||
| (2) Commencement of operations | |||||||||||||||||
68
Table of Contents
| ING | ING | ING | ING | ||||||||||||||
| Index Plus | International | International | International | ||||||||||||||
| International | Capital | Equity | Growth | ||||||||||||||
| Equity | Appreciation | Dividend | Opportunities | ||||||||||||||
| Fund | Fund | Fund | Fund | ||||||||||||||
| Year Ended | Year Ended | June 28, 2007(3) | Year Ended | ||||||||||||||
| October 31, | October 31, | to October 31, | October 31, | ||||||||||||||
| 2007 | 2007 | 2007 | 2007 | ||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||
Dividends, net of foreign taxes withheld*(1) | $ | 2,697,158 | $ | 1,475,306 | $ | 312,485 | $ | 2,381,921 | |||||||||
Interest(2) | 56,615 | 51,653 | 756 | 94,122 | |||||||||||||
| Securities lending income | — | — | — | 21,664 | |||||||||||||
| Total investment income | 2,753,773 | 1,526,959 | 313,241 | 2,497,707 | |||||||||||||
EXPENSES: | |||||||||||||||||
| Investment management fees | 574,785 | 796,611 | 75,443 | 1,332,839 | |||||||||||||
| Distribution and service fees: | |||||||||||||||||
| Class A | 13,859 | 9,123 | 1,660 | 150,808 | |||||||||||||
| Class B | 4,968 | 2,628 | 440 | 167,176 | |||||||||||||
| Class C | 7,665 | 2,695 | 1,916 | 167,105 | |||||||||||||
| Class Q | — | — | — | 74,074 | |||||||||||||
| Transfer agent fees: | |||||||||||||||||
| Class A | 2,772 | 4,019 | 302 | 76,827 | |||||||||||||
| Class B | 249 | 307 | 19 | 21,464 | |||||||||||||
| Class C | 379 | 315 | 103 | 21,330 | |||||||||||||
| Class I | 1,561 | 20,089 | 3,441 | 1,218 | |||||||||||||
| Class Q | — | — | — | 1,034 | |||||||||||||
| Administrative service fees | 104,505 | 93,718 | 10,059 | 133,283 | |||||||||||||
| Shareholder reporting expense | 10,986 | 10,570 | 3,381 | 12,045 | |||||||||||||
| Registration fees | 60,364 | 53,289 | 3,752 | 90,856 | |||||||||||||
| Professional fees | 16,359 | 16,731 | 3,101 | 23,100 | |||||||||||||
| Custody and accounting expense | 75,243 | 60,762 | 2,586 | 73,080 | |||||||||||||
| Trustee fees | 4,125 | 1,825 | 1,006 | 2,845 | |||||||||||||
| Offering expense | — | — | 34,428 | — | |||||||||||||
| Miscellaneous expense | 8,128 | 8,046 | 2,311 | 6,536 | |||||||||||||
| Interest expense | 17,882 | — | — | 14,317 | |||||||||||||
| Total expenses | 903,830 | 1,080,728 | 143,948 | 2,369,937 | |||||||||||||
| Net recouped (waived and reimbursed) fees | 36,023 | 27,690 | (24,309 | ) | (433 | ) | |||||||||||
| Brokerage commission recapture | — | (2,394 | ) | — | — | ||||||||||||
| Net expenses | 939,853 | 1,106,024 | 119,639 | 2,369,504 | |||||||||||||
| Net investment income | 1,813,920 | 420,935 | 193,602 | 128,203 | |||||||||||||
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)** | 12,532,698 | 5,341,694 | 212,513 | 23,430,690 | |||||||||||||
| Foreign currency related transactions | 9,269 | (74,975 | ) | (82,321 | ) | 89,898 | |||||||||||
| Net realized gain on investments and foreign currency related transactions | 12,541,967 | 5,266,719 | 130,192 | 23,520,588 | |||||||||||||
| Net change in unrealized appreciation or depreciation on: | |||||||||||||||||
| Investments (net of Indian capital gains tax accrued)*** | 7,940,980 | 24,277,038 | 3,430,168 | 11,823,450 | |||||||||||||
| Foreign currency related transactions | 37,065 | (2,285 | ) | (529 | ) | 17,500 | |||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 7,978,045 | 24,274,753 | 3,429,639 | 11,840,950 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | 20,520,012 | 29,541,472 | 3,559,831 | 35,361,538 | |||||||||||||
Increase in net assets resulting from operations | $ | 22,333,932 | $ | 29,962,407 | $ | 3,753,433 | $ | 35,489,741 | |||||||||
| * Foreign taxes withheld | $ | 242,380 | $ | 136,699 | $ | 20,706 | $ | 209,611 | |||||||||
| ** Foreign tax on sale of Indian investments | $ | — | $ | — | $ | — | $ | 30,583 | |||||||||
| *** Foreign tax accrued on Indian investments | $ | — | $ | — | $ | — | $ | 87,177 | |||||||||
| (1) Dividends from affiliates | $ | 14,288 | $ | — | $ | — | $ | — | |||||||||
| (2) Affiliated income | $ | — | $ | — | $ | — | $ | 29,344 | |||||||||
| (3) Commencement of operations | |||||||||||||||||
69
Table of Contents
| ING | ING | ING | ING | ||||||||||||||
| International | International | International | International | ||||||||||||||
| Real Estate | SmallCap | Value | Value Choice | ||||||||||||||
| Fund | Fund | Fund | Fund | ||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||
| Dividends, net of foreign taxes withheld* | $ | 7,121,640 | $ | 18,769,968 | $ | 134,030,353 | $ | 2,056,812 | |||||||||
| Interest | 540,327 | 907,208 | 6,838,055 | 249,287 | |||||||||||||
| Securities lending income | — | 436,823 | 308,887 | — | |||||||||||||
| Total investment income | 7,661,967 | 20,113,999 | 141,177,295 | 2,306,099 | |||||||||||||
EXPENSES: | |||||||||||||||||
| Investment management fees | 2,991,233 | 8,433,004 | 52,925,035 | 902,322 | |||||||||||||
| Distribution and service fees: | |||||||||||||||||
| Class A | 434,454 | 1,288,028 | 6,403,093 | 44,965 | |||||||||||||
| Class B | 76,376 | 635,463 | 3,470,281 | 36,288 | |||||||||||||
| Class C | 729,904 | 842,993 | 7,559,121 | 46,977 | |||||||||||||
| Class Q | — | 268,512 | 67,877 | — | |||||||||||||
| Transfer agent fees: | |||||||||||||||||
| Class A | 150,855 | 287,646 | 2,358,067 | 27,198 | |||||||||||||
| Class B | 6,559 | 49,596 | 383,863 | 5,467 | |||||||||||||
| Class C | 62,857 | 65,690 | 835,196 | 7,043 | |||||||||||||
| Class I | 46,752 | 69,644 | 883,345 | 5,020 | |||||||||||||
| Class Q | — | 29,423 | 11,806 | — | |||||||||||||
| Administrative service fees | 308,248 | 883,343 | 6,148,846 | 90,231 | |||||||||||||
| Shareholder reporting expense | 65,305 | 156,744 | 754,530 | 16,391 | |||||||||||||
| Registration fees | 55,929 | 94,712 | 111,744 | 45,542 | |||||||||||||
| Professional fees | 21,560 | 80,135 | 501,500 | 15,900 | |||||||||||||
| Custody and accounting expense | 147,300 | 606,450 | 1,741,030 | 33,650 | |||||||||||||
| Trustee fees | 5,671 | 24,045 | 180,145 | 3,290 | |||||||||||||
| Miscellaneous expense | 7,410 | 30,008 | 185,995 | 4,131 | |||||||||||||
| Interest expense | — | 6,636 | 4,886 | 2,924 | |||||||||||||
| Total expenses | 5,110,413 | 13,852,072 | 84,526,360 | 1,287,339 | |||||||||||||
| Net recouped (waived and reimbursed) fees | (20,669 | ) | — | (128,343 | ) | 59,648 | |||||||||||
| Brokerage commission recapture | — | — | (218,397 | ) | (2,751 | ) | |||||||||||
| Net expenses | 5,089,744 | 13,852,072 | 84,179,620 | 1,344,236 | |||||||||||||
| Net investment income | 2,572,223 | 6,261,927 | 56,997,675 | 961,863 | |||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY RELATED TRANSACTIONS: | |||||||||||||||||
| Net realized gain (loss) on: | |||||||||||||||||
| Investments | (5,187,305 | ) | 139,568,783 | 774,362,293 | 11,195,524 | ||||||||||||
| Foreign currency related transactions | (740,301 | ) | 51,240 | (1,151,612 | ) | (68,120 | ) | ||||||||||
| Net realized gain (loss) on investments and foreign currency related transactions | (5,927,606 | ) | 139,620,023 | 773,210,681 | 11,127,404 | ||||||||||||
| Net change in unrealized appreciation or depreciation on: | |||||||||||||||||
| Investments (net of Indian capital gains tax accrued)** | 67,066,303 | 138,328,868 | 111,021,668 | 5,115,380 | |||||||||||||
| Foreign currency related transactions | 11,582 | (200,747 | ) | 49,154 | (562 | ) | |||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 67,077,885 | 138,128,121 | 111,070,822 | 5,114,818 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | 61,150,279 | 277,748,144 | 884,281,503 | 16,242,222 | |||||||||||||
Increase in net assets resulting from operations | $ | 63,722,502 | $ | 284,010,071 | $ | 941,279,178 | $ | 17,204,085 | |||||||||
| * Foreign taxes withheld | $ | 949,023 | $ | 1,766,190 | $ | 15,227,854 | $ | 210,600 | |||||||||
| ** Foreign tax accrued on Indian investments | $ | — | $ | 27,869 | $ | — | $ | — | |||||||||
70
Table of Contents
| ING | ING | ||||||||||||
| International | ING | Emerging Markets | |||||||||||
| Value Opportunities | Russia | Fixed Income | |||||||||||
| Fund | Fund | Fund | |||||||||||
| February 28, 2007(1) | Year Ended | Year Ended | |||||||||||
| to October 31, | October 31, | October 31, | |||||||||||
| 2007 | 2007 | 2007 | |||||||||||
INVESTMENT INCOME: | |||||||||||||
| Dividends, net of foreign taxes withheld* | $ | 268,656 | $ | 12,226,310 | $ | 34,302 | |||||||
| Interest, net of foreign taxes withheld* | 1,000 | — | 8,824,835 | ||||||||||
| Securities lending income | — | 276,229 | — | ||||||||||
| Total investment income | 269,656 | 12,502,539 | 8,859,137 | ||||||||||
EXPENSES: | |||||||||||||
| Investment management fees | 54,962 | 10,861,996 | 879,513 | ||||||||||
| Distribution and service fees: | |||||||||||||
| Class A | 17,161 | 2,172,393 | 53,058 | ||||||||||
| Class B | 23 | — | 3,439 | ||||||||||
| Class C | 27 | — | 8,519 | ||||||||||
| Transfer agent fees: | |||||||||||||
| Class A | 5,177 | 768,297 | 6,290 | ||||||||||
| Class B | 1 | — | 104 | ||||||||||
| Class C | 2 | — | 265 | ||||||||||
| Class I | 1 | — | 5,747 | ||||||||||
| Administrative service fees | 6,870 | 868,951 | 136,204 | ||||||||||
| Shareholder reporting expense | 2,290 | 217,887 | 14,023 | ||||||||||
| Registration fees | 36,444 | 87,653 | 53,737 | ||||||||||
| Professional fees | 2,025 | 103,622 | 10,832 | ||||||||||
| Custody and accounting expense | 7,168 | 1,816,710 | 25,204 | ||||||||||
| Trustee fees | 689 | 29,668 | 1,710 | ||||||||||
| Offering expense | 57,288 | — | 13,699 | ||||||||||
| Miscellaneous expense | 2,773 | 29,116 | 4,454 | ||||||||||
| Interest expense | — | 58,135 | 2,894 | ||||||||||
| Total expenses | 192,901 | 17,014,428 | 1,219,692 | ||||||||||
| Net recouped (waived and reimbursed) fees | (96,662 | ) | — | 111,594 | |||||||||
| Net expenses | 96,239 | 17,014,428 | 1,331,286 | ||||||||||
| Net investment income (loss) | 173,417 | (4,511,889 | ) | 7,527,851 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FUTURES: | |||||||||||||
| Net realized gain (loss) on: | |||||||||||||
| Investments | 48,769 | 142,304,308 | (476,173 | ) | |||||||||
| Foreign currency related transactions | 6,623 | (19,665 | ) | (37,803 | ) | ||||||||
| Futures | — | — | (209,822 | ) | |||||||||
| Net realized gain (loss) on investments, foreign currency related transactions, and futures | 55,392 | 142,284,643 | (723,798 | ) | |||||||||
| Net change in unrealized appreciation or depreciation on: | |||||||||||||
| Investments | 413,782 | 177,635,237 | 379,215 | ||||||||||
| Foreign currency related transactions | (468 | ) | 1,173 | 10,290 | |||||||||
| Futures | — | — | 16,969 | ||||||||||
| Net change in unrealized appreciation or depreciation on investments, foreign currency related transactions, and futures | 413,314 | 177,636,410 | 406,474 | ||||||||||
| Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and futures | 468,706 | 319,921,053 | (317,324 | ) | |||||||||
Increase in net assets resulting from operations | $ | 642,123 | $ | 315,409,164 | $ | 7,210,527 | |||||||
| * Foreign taxes withheld | $ | 27,790 | $ | 1,730,818 | $ | 63,509 | |||||||
(1) Commencement of operations
71
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| ING | ING | ||||||||
| Global | Diversified | ||||||||
| Bond | International | ||||||||
| Fund | Fund | ||||||||
INVESTMENT INCOME: | |||||||||
| Dividends | $ | 16,225 | $ | — | |||||
| Dividends from affiliated underlying funds | — | 2,373,551 | |||||||
Interest, net of foreign taxes withheld*(1) | 1,052,385 | — | |||||||
| Total investment income | 1,068,610 | 2,373,551 | |||||||
EXPENSES: | |||||||||
| Investment management fees | 107,310 | — | |||||||
| Distribution and service fees: | |||||||||
| Class A | 65,614 | 660,320 | |||||||
| Class B | 1,850 | 326,808 | |||||||
| Class C | 3,959 | 1,132,231 | |||||||
| Class R | — | 1,584 | |||||||
| Transfer agent fees: | |||||||||
| Class A | 2,779 | 258,025 | |||||||
| Class B | 20 | 31,926 | |||||||
| Class C | 43 | 110,607 | |||||||
| Class I | — | 23 | |||||||
| Class R | — | 309 | |||||||
| Administrative service fees | 26,827 | 410,369 | |||||||
| Shareholder reporting expense | 27,520 | 121,042 | |||||||
| Registration fees | 41,255 | 102,086 | |||||||
| Professional fees | 10,775 | 100,518 | |||||||
| Custody and accounting expense | 24,450 | 10,134 | |||||||
| Trustee fees | 705 | 11,816 | |||||||
| Offering expense | 75,093 | 80,070 | |||||||
| Miscellaneous expense | 6,584 | 13,300 | |||||||
| Interest expense | 980 | — | |||||||
| Total expenses | 395,764 | 3,371,168 | |||||||
| Net waived and reimbursed fees | (150,223 | ) | (1,428,893 | ) | |||||
| Net expenses | 245,541 | 1,942,275 | |||||||
| Net investment income | 823,069 | 431,276 | |||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, INVESTMENTS IN AFFILIATED UNDERLYING FUNDS, FOREIGN CURRENCY RELATED TRANSACTIONS, FUTURES, AND SWAPS: | |||||||||
| Net realized gain on: | |||||||||
| Investments | 250,785 | — | |||||||
| Distributions of realized gains from affiliated underlying funds | — | 6,074,811 | |||||||
| Investments in affiliated underlying funds | — | 1,741,326 | |||||||
| Foreign currency related transactions | 338,153 | — | |||||||
| Futures and swaps | 209,335 | — | |||||||
| Net realized gain on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, and swaps | 798,273 | 7,816,137 | |||||||
| Net change in unrealized appreciation or depreciation on: | |||||||||
| Investments | 965,605 | — | |||||||
| Investments in affiliated underlying funds | — | 97,142,153 | |||||||
| Foreign currency related transactions | 81,396 | — | |||||||
| Futures and swaps | (107,315 | ) | — | ||||||
| Net change in unrealized appreciation or depreciation on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, and swaps | 939,686 | 97,142,153 | |||||||
| Net realized and unrealized gain on investments, investments in affiliated underlying funds, foreign currency related transactions, futures, and swaps | 1,737,959 | 104,958,290 | |||||||
Increase in net assets resulting from operations | $ | 2,561,028 | $ | 105,389,566 | |||||
| * Foreign taxes withheld | $ | 2,303 | $ | — | |||||
| (1) Affiliated income | $ | 125,220 | $ | — | |||||
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Table of Contents
| ING Global Equity | ING Global Natural | ||||||||||||||||
| Dividend Fund | Resources Fund | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income (loss) | $ | 9,943,310 | $ | 6,077,893 | $ | (367,759 | ) | $ | (736,753 | ) | |||||||
| Net realized gain on investments and foreign currency related transactions | 27,811,655 | 11,756,201 | 26,954,117 | 44,515,644 | |||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 6,761,896 | 23,693,909 | 21,662,769 | (6,717,073 | ) | ||||||||||||
| Net increase in net assets resulting from operations | 44,516,861 | 41,528,003 | 48,249,127 | 37,061,818 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | (5,670,697 | ) | (2,877,316 | ) | (2,937,873 | ) | (180,375 | ) | |||||||||
| Class B | (1,472,137 | ) | (1,049,974 | ) | — | — | |||||||||||
| Class C | (2,980,276 | ) | (1,773,737 | ) | — | — | |||||||||||
| Class I | (8 | ) | — | — | — | ||||||||||||
| Class O | (499,649 | ) | — | — | — | ||||||||||||
| Net realized gains: | |||||||||||||||||
| Class A | (5,696,724 | ) | (1,118,180 | ) | (3,999,909 | ) | — | ||||||||||
| Class B | (2,232,186 | ) | (431,639 | ) | — | — | |||||||||||
| Class C | (3,980,153 | ) | (736,438 | ) | — | — | |||||||||||
| Class O | (83,443 | ) | — | — | — | ||||||||||||
| Total distributions | (22,615,273 | ) | (7,987,284 | ) | (6,937,782 | ) | (180,375 | ) | |||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 202,562,312 | 95,777,433 | 16,678,962 | 22,092,980 | |||||||||||||
| Dividends reinvested | 14,663,596 | 4,690,850 | 6,190,526 | 161,561 | |||||||||||||
| 217,225,908 | 100,468,283 | 22,869,488 | 22,254,541 | ||||||||||||||
| Cost of shares redeemed | (81,136,802 | ) | (53,698,155 | ) | (27,924,321 | ) | (25,464,330 | ) | |||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 136,089,106 | 46,770,128 | (5,054,833 | ) | (3,209,789 | ) | |||||||||||
| Net increase in net assets | 157,990,694 | 80,310,847 | 36,256,512 | 33,671,654 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of year | 231,273,582 | 150,962,735 | 121,112,423 | 87,440,769 | |||||||||||||
| End of year | $ | 389,264,276 | $ | 231,273,582 | $ | 157,368,935 | $ | 121,112,423 | |||||||||
| Undistributed net investment income at end of year | $ | 2,265,845 | $ | 957,740 | $ | 515,975 | $ | 2,905,734 | |||||||||
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| 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, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income (loss) | $ | 9,309,818 | $ | 2,837,465 | $ | (279,174 | ) | $ | 78,035 | ||||||||
| Net realized gain on investments and foreign currency related transactions | 3,038,303 | 13,064,195 | 20,403,387 | 14,298,259 | |||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 111,748,957 | 96,617,009 | 11,089,799 | 4,744,044 | |||||||||||||
| Net increase in net assets resulting from operations | 124,097,078 | 112,518,669 | 31,214,012 | 19,120,338 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | (36,353,919 | ) | (5,490,053 | ) | — | (322,489 | ) | ||||||||||
| Class B | (2,289,473 | ) | (386,380 | ) | — | — | |||||||||||
| Class C | (9,440,529 | ) | (986,253 | ) | — | (35,318 | ) | ||||||||||
| Class I | (1,235,834 | ) | (149,037 | ) | — | — | |||||||||||
| Class O | (800,532 | ) | — | — | — | ||||||||||||
| Class Q | — | — | — | (39,663 | ) | ||||||||||||
| Net realized gains: | |||||||||||||||||
| Class A | (7,533,675 | ) | (8,946,554 | ) | — | — | |||||||||||
| Class B | (577,495 | ) | (920,111 | ) | — | — | |||||||||||
| Class C | (2,018,085 | ) | (2,017,572 | ) | — | — | |||||||||||
| Class I | (167,262 | ) | (103,752 | ) | — | — | |||||||||||
| Class O | (47,650 | ) | — | — | — | ||||||||||||
| Total distributions | (60,464,454 | ) | (18,999,712 | ) | — | (397,470 | ) | ||||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 1,452,457,984 | 386,972,514 | 23,951,269 | 22,826,540 | |||||||||||||
| Dividends reinvested | 46,781,605 | 13,607,657 | — | 232,139 | |||||||||||||
| 1,499,239,589 | 400,580,171 | 23,951,269 | 23,058,679 | ||||||||||||||
| Cost of shares redeemed | (602,805,919 | ) | (54,880,614 | ) | (30,529,879 | ) | (36,462,732 | ) | |||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 896,433,670 | 345,699,557 | (6,578,610 | ) | (13,404,053 | ) | |||||||||||
| Net increase in net assets | 960,066,294 | 439,218,514 | 24,635,402 | 5,318,815 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of year | 619,505,151 | 180,286,637 | 106,047,757 | 100,728,942 | |||||||||||||
| End of year | $ | 1,579,571,445 | $ | 619,505,151 | $ | 130,683,159 | $ | 106,047,757 | |||||||||
| Undistributed net investment income (distribution in excess of net investment income) at end of year | $ | (8,882,330 | ) | $ | (1,380,929 | ) | $ | 409,172 | $ | 4,954 | |||||||
74
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| ING Disciplined | |||||||||||||
| International | |||||||||||||
| SmallCap Fund | ING Emerging Countries Fund | ||||||||||||
| December 20, 2006(1) | Year Ended | Year Ended | |||||||||||
| to October 31, | October 31, | October 31, | |||||||||||
| 2007 | 2007 | 2006 | |||||||||||
FROM OPERATIONS: | |||||||||||||
| Net investment income | $ | 2,228,967 | $ | 3,516,628 | $ | 2,988,696 | |||||||
| Net realized gain on investments and foreign currency related transactions | 2,282,503 | 46,867,839 | 19,176,929 | ||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 22,941,221 | 39,650,088 | 14,193,064 | ||||||||||
| Net increase in net assets resulting from operations | 27,452,691 | 90,034,555 | 36,358,689 | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||
| Net investment income: | |||||||||||||
| Class A | — | (1,896,150 | ) | (521,510 | ) | ||||||||
| Class B | — | (83,261 | ) | — | |||||||||
| Class C | — | (323,450 | ) | (76,339 | ) | ||||||||
| Class I | — | (446,558 | ) | — | |||||||||
| Class M | — | (13,746 | ) | (1,172 | ) | ||||||||
| Class Q | — | (179,954 | ) | (72,796 | ) | ||||||||
| Total distributions | — | (2,943,119 | ) | (671,817 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||
| Net proceeds from sale of shares | 492,620,976 | 112,724,921 | 104,928,041 | ||||||||||
| Dividends reinvested | — | 2,492,354 | 558,626 | ||||||||||
| 492,620,976 | 115,217,275 | 105,486,667 | |||||||||||
| Cost of shares redeemed | (54,286,888 | ) | (79,923,522 | ) | (65,590,355 | ) | |||||||
| Net increase in net assets resulting from capital share transactions | 438,334,088 | 35,293,753 | 39,896,312 | ||||||||||
| Net increase in net assets | 465,786,779 | 122,385,189 | 75,583,184 | ||||||||||
NET ASSETS: | |||||||||||||
| Beginning of period | — | 208,259,290 | 132,676,106 | ||||||||||
| End of period | $ | 465,786,779 | $ | 330,644,479 | $ | 208,259,290 | |||||||
| Undistributed net investment income at end of period | $ | 2,461,339 | $ | 3,092,434 | $ | 2,923,300 | |||||||
| (1) | Commencement of operations |
75
Table of Contents
| ING Greater China Fund | |||||||||||||||||
| ING Foreign Fund | |||||||||||||||||
| December 21, | |||||||||||||||||
| Year Ended | Year Ended | Year Ended | 2005(1) to | ||||||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income | $ | 2,085,807 | $ | 678,207 | $ | 210,200 | $ | 119,633 | |||||||||
| Net realized gain (loss) on investments and foreign currency related transactions | 47,020,133 | 15,514,636 | 7,910,177 | (99,352 | ) | ||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 111,918,325 | 63,917,689 | 29,642,227 | 3,519,820 | |||||||||||||
| Net increase in net assets resulting from operations | 161,024,265 | 80,110,532 | 37,762,604 | 3,540,101 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | — | — | (127,574 | ) | — | ||||||||||||
| Class B | — | — | (9,360 | ) | — | ||||||||||||
| Class C | — | — | (5,789 | ) | — | ||||||||||||
| Class I | — | — | (143 | ) | — | ||||||||||||
| Net realized gains: | |||||||||||||||||
| Class A | (8,170,693 | ) | (3,149,065 | ) | (219 | ) | — | ||||||||||
| Class B | (1,424,431 | ) | (602,429 | ) | (24 | ) | — | ||||||||||
| Class C | (5,882,217 | ) | (2,293,757 | ) | (21 | ) | — | ||||||||||
| Class I | (2,373,358 | ) | (25,483 | ) | — | — | |||||||||||
| Class Q | (43,762 | ) | (26,071 | ) | — | — | |||||||||||
| Total distributions | (17,894,461 | ) | (6,096,805 | ) | (143,130 | ) | — | ||||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 228,656,436 | 225,899,108 | 51,182,704 | 26,394,340 | |||||||||||||
| Dividends reinvested | 12,389,371 | 3,983,760 | 73,388 | — | |||||||||||||
| 241,045,807 | 229,882,868 | 51,256,092 | 26,394,340 | ||||||||||||||
| Cost of shares redeemed | (116,454,629 | ) | (65,228,166 | ) | (23,031,761 | ) | (2,122,686 | ) | |||||||||
| Net increase in net assets resulting from capital share transactions | 124,591,178 | 164,654,702 | 28,224,331 | 24,271,654 | |||||||||||||
| Net increase in net assets | 267,720,982 | 238,668,429 | 65,843,805 | 27,811,755 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of period | 474,499,484 | 235,831,055 | 27,811,755 | — | |||||||||||||
| End of period | $ | 742,220,466 | $ | 474,499,484 | $ | 93,655,560 | $ | 27,811,755 | |||||||||
| Undistributed net investment income at end of period | $ | 6,305,480 | $ | 727,435 | $ | 197,081 | $ | 137,964 | |||||||||
| (1) | Commencement of operations |
76
Table of Contents
| ING Index Plus | ING International | ||||||||||||||||
| International Equity Fund | Capital Appreciation Fund | ||||||||||||||||
| December 21, | December 21, | ||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2005(1) to | ||||||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income | $ | 1,813,920 | $ | 816,012 | $ | 420,935 | $ | 105,745 | |||||||||
| Net realized gain on investments and foreign currency related transactions | 12,541,967 | 1,855,644 | 5,266,719 | 1,085,185 | |||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 7,978,045 | 5,710,561 | 24,274,753 | 3,494,526 | |||||||||||||
| Net increase in net assets resulting from operations | 22,333,932 | 8,382,217 | 29,962,407 | 4,685,456 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | (87,342 | ) | — | (23,107 | ) | — | |||||||||||
| Class B | (1,478 | ) | — | (260 | ) | — | |||||||||||
| Class C | (2,010 | ) | — | (23 | ) | — | |||||||||||
| Class I | (863,636 | ) | — | (383,682 | ) | — | |||||||||||
| Net realized gains: | |||||||||||||||||
| Class A | (291,175 | ) | — | (108,029 | ) | — | |||||||||||
| Class B | (6,890 | ) | — | (1,967 | ) | — | |||||||||||
| Class C | (12,818 | ) | — | (1,476 | ) | — | |||||||||||
| Class I | (1,953,787 | ) | — | (1,126,292 | ) | — | |||||||||||
| Total distributions | (3,219,136 | ) | — | (1,644,836 | ) | — | |||||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 62,111,210 | 91,204,957 | 73,718,329 | 58,564,363 | |||||||||||||
| Dividends reinvested | 2,857,702 | — | 1,517,633 | — | |||||||||||||
| 64,968,912 | 91,204,957 | 75,235,962 | 58,564,363 | ||||||||||||||
| Cost of shares redeemed | (52,958,552 | ) | (7,694,903 | ) | (7,155,866 | ) | (12,241,259 | ) | |||||||||
| Net increase in net assets resulting from capital share transactions | 12,010,360 | 83,510,054 | 68,080,096 | 46,323,104 | |||||||||||||
| Net increase in net assets | 31,125,156 | 91,892,271 | 96,397,667 | 51,008,560 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of period | 91,892,271 | — | 51,008,560 | — | |||||||||||||
| End of period | $ | 123,017,427 | $ | 91,892,271 | $ | 147,406,227 | $ | 51,008,560 | |||||||||
| Undistributed net investment income at end of period | $ | 2,158,663 | $ | 888,758 | $ | 1,765,493 | $ | 422,118 | |||||||||
| (1) | Commencement of operations |
77
Table of Contents
| ING International | |||||||||||||
| Equity Dividend Fund | ING International | ||||||||||||
| Growth Opportunities Fund | |||||||||||||
| June 28, | |||||||||||||
| 2007(1) to | Year Ended | Year Ended | |||||||||||
| October 31, | October 31, | October 31, | |||||||||||
| 2007 | 2007 | 2006 | |||||||||||
FROM OPERATIONS: | |||||||||||||
| Net investment income | $ | 193,602 | $ | 128,203 | $ | 1,076,925 | |||||||
| Net realized gain on investments and foreign currency related transactions | 130,192 | 23,520,588 | 18,604,719 | ||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 3,429,639 | 11,840,950 | 4,910,755 | ||||||||||
| Net increase in net assets resulting from operations | 3,753,433 | 35,489,741 | 24,592,399 | ||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||
| Net investment income: | |||||||||||||
| Class A | — | (680,068 | ) | (808,009 | ) | ||||||||
| Class B | — | (66,840 | ) | (134,209 | ) | ||||||||
| Class C | — | (70,208 | ) | (114,855 | ) | ||||||||
| Class I | — | (212,485 | ) | (475,409 | ) | ||||||||
| Class Q | — | (379,024 | ) | (281,619 | ) | ||||||||
| Net realized gains: | |||||||||||||
| Class A | — | (5,041,992 | ) | — | |||||||||
| Class B | — | (1,473,205 | ) | — | |||||||||
| Class C | — | (1,405,761 | ) | — | |||||||||
| Class I | — | (1,170,829 | ) | — | |||||||||
| Class Q | — | (2,425,795 | ) | — | |||||||||
| Total distributions | — | (12,926,207 | ) | (1,814,101 | ) | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||
| Net proceeds from sale of shares | 57,663,013 | 24,042,736 | 40,612,022 | ||||||||||
| Dividends reinvested | — | 11,571,000 | 1,681,978 | ||||||||||
| 57,663,013 | 35,613,736 | 42,294,000 | |||||||||||
| Redemption fee proceeds | — | — | 257 | ||||||||||
| Cost of shares redeemed | (110,155 | ) | (46,253,686 | ) | (53,702,310 | ) | |||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 57,552,858 | (10,639,950 | ) | (11,408,053 | ) | ||||||||
| Net increase in net assets | 61,292,610 | 11,923,584 | 11,370,245 | ||||||||||
NET ASSETS: | |||||||||||||
| Beginning of period | — | 131,904,925 | 120,534,680 | ||||||||||
| End of period | $ | 61,306,291 | $ | 143,828,509 | $ | 131,904,925 | |||||||
| Undistributed net investment income at end of period | $ | 314,015 | $ | 118,948 | $ | 1,393,902 | |||||||
| (1) | Commencement of operations |
78
Table of Contents
| ING International Real Estate Fund | ING International SmallCap Fund | ||||||||||||||||
| Year Ended | February 28, 2006(1) | Year Ended | Year Ended | ||||||||||||||
| October 31, | to October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income | $ | 2,572,223 | $ | 264,817 | $ | 6,261,927 | $ | 2,559,972 | |||||||||
| Net realized gain (loss) on investments and foreign currency related transactions | (5,927,606 | ) | (265,508) | 139,620,023 | 62,907,548 | ||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 67,077,885 | 7,393,293 | 138,128,121 | 32,230,993 | |||||||||||||
| Net increase in net assets resulting from operations | 63,722,502 | 7,392,602 | 284,010,071 | 97,698,513 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | (3,122,648 | ) | (120,231) | (1,450,677 | ) | (1,533,625 | ) | ||||||||||
| Class B | (87,059 | ) | (1,428) | — | — | ||||||||||||
| Class C | (800,946 | ) | (19,994) | (3,361 | ) | (57,978 | ) | ||||||||||
| Class I | (1,247,020 | ) | (34,816) | (1,454,644 | ) | (164,327 | ) | ||||||||||
| Class Q | — | — | (542,824 | ) | (617,820 | ) | |||||||||||
| Total distributions | (5,257,673 | ) | (176,469) | (3,451,506 | ) | (2,373,750 | ) | ||||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 476,221,868 | 92,161,082 | 582,975,064 | 309,748,096 | |||||||||||||
| Dividends reinvested | 3,314,796 | 62,630 | 2,386,090 | 1,879,677 | |||||||||||||
| 479,536,664 | 92,223,712 | 585,361,154 | 311,627,773 | ||||||||||||||
| Cost of shares redeemed | (97,047,896 | ) | (8,592,241) | (251,064,888 | ) | (161,509,548 | ) | ||||||||||
| Net increase in net assets resulting from capital share transactions | 382,488,768 | 83,631,471 | 334,296,266 | 150,118,225 | |||||||||||||
| Net increase in net assets | 440,953,597 | 90,847,604 | 614,854,831 | 245,442,988 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of period | 90,847,604 | — | 586,452,588 | 341,009,600 | |||||||||||||
| End of period | $ | 531,801,201 | $ | 90,847,604 | $ | 1,201,307,419 | $ | 586,452,588 | |||||||||
| Undistributed net investment income at end of period | $ | 18,780,674 | $ | 2,391,308 | $ | 6,310,276 | $ | 3,446,324 | |||||||||
| (1) | Commencement of operations |
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| ING International | |||||||||||||||||
| ING International Value Fund | Value Choice Fund | ||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income | $ | 56,997,675 | $ | 38,146,974 | $ | 961,863 | $ | 403,477 | |||||||||
| Net realized gain on investments and foreign currency related transactions | 773,210,681 | 492,808,704 | 11,127,404 | 1,062,416 | |||||||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 111,070,822 | 552,897,031 | 5,114,818 | 3,116,419 | |||||||||||||
| Net increase in net assets resulting from operations | 941,279,178 | 1,083,852,709 | 17,204,085 | 4,582,312 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | (18,482,190 | ) | (14,654,043 | ) | (98,246 | ) | (65,003 | ) | |||||||||
| Class B | (533,208 | ) | (194,108 | ) | — | (16,400 | ) | ||||||||||
| Class C | (1,845,996 | ) | (1,042,925 | ) | — | — | |||||||||||
| Class I | (22,422,943 | ) | (15,430,051 | ) | (317,928 | ) | (15,496 | ) | |||||||||
| Class Q | (267,155 | ) | (268,368 | ) | — | — | |||||||||||
| Net realized gains: | |||||||||||||||||
| Class A | (197,689,141 | ) | (133,758,480 | ) | (310,768 | ) | (106,743 | ) | |||||||||
| Class B | (36,175,155 | ) | (30,856,576 | ) | (60,618 | ) | (32,501 | ) | |||||||||
| Class C | (73,056,964 | ) | (51,541,230 | ) | (75,307 | ) | (33,480 | ) | |||||||||
| Class I | (171,997,304 | ) | (94,544,982 | ) | (671,110 | ) | — | ||||||||||
| Class Q | (2,584,599 | ) | (2,101,201 | ) | — | — | |||||||||||
| Total distributions | (525,054,655 | ) | (344,391,964 | ) | (1,533,977 | ) | (269,623 | ) | |||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 981,748,449 | 828,247,984 | 62,085,850 | 58,821,061 | |||||||||||||
| Dividends reinvested | 372,072,665 | 245,908,881 | 1,417,746 | 176,320 | |||||||||||||
| 1,353,821,114 | 1,074,156,865 | 63,503,596 | 58,997,381 | ||||||||||||||
| Cost of shares redeemed | (1,219,257,275 | ) | (1,022,244,408 | ) | (56,041,699 | ) | (10,034,154 | ) | |||||||||
| Net increase in net assets resulting from capital share transactions | 134,563,839 | 51,912,457 | 7,461,897 | 48,963,227 | |||||||||||||
| Net increase in net assets | 550,788,362 | 791,373,202 | 23,132,005 | 53,275,916 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of year | 4,847,989,112 | 4,056,615,910 | 62,614,497 | 9,338,581 | |||||||||||||
| End of year | $ | 5,398,777,474 | $ | 4,847,989,112 | $ | 85,746,502 | $ | 62,614,497 | |||||||||
| Undistributed net investment income at end of year | $ | 52,954,318 | $ | 40,659,747 | $ | 809,824 | $ | 332,255 | |||||||||
80
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| ING International | ||||||||||||
| Value Opportunities | ||||||||||||
| Fund | ING Russia Fund | |||||||||||
| February 28, 2007(1) | Year Ended | Year Ended | ||||||||||
| to October 31, | October 31, | October 31, | ||||||||||
| 2007 | 2007 | 2006 | ||||||||||
FROM OPERATIONS: | ||||||||||||
| Net investment income (loss) | $ | 173,417 | $ | (4,511,889 | ) | $ | (3,690,687 | ) | ||||
| Net realized gain on investments and foreign currency related transactions | 55,392 | 142,284,643 | 46,256,786 | |||||||||
| Net change in unrealized appreciation or depreciation on investments and foreign currency related transactions | 413,314 | 177,636,410 | 174,358,878 | |||||||||
| Net increase in net assets resulting from operations | 642,123 | 315,409,164 | 216,924,977 | |||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||
| Net realized gains | — | (43,574,710 | ) | — | ||||||||
| Total distributions | — | (43,574,710 | ) | — | ||||||||
FROM CAPITAL SHARE TRANSACTIONS: | ||||||||||||
| Net proceeds from sale of shares | 10,090,135 | 280,987,914 | 528,911,241 | |||||||||
| Dividends reinvested | — | 37,402,991 | — | |||||||||
| 10,090,135 | 318,390,905 | 528,911,241 | ||||||||||
| Redemption fee proceeds | — | 3,086,432 | 2,984,157 | |||||||||
| Cost of shares redeemed | (29,678) | (422,755,301 | ) | (268,475,876 | ) | |||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 10,060,457 | (101,277,964 | ) | 263,419,522 | ||||||||
| Net increase in net assets | 10,702,580 | 170,556,490 | 480,344,499 | |||||||||
NET ASSETS: | ||||||||||||
| Beginning of period | — | 751,947,250 | 271,602,751 | |||||||||
| End of period | $ | 10,702,580 | $ | 922,503,740 | $ | 751,947,250 | ||||||
| Undistributed net investment income at end of period | $ | 200,203 | $ | — | $ | — | ||||||
| (1) | Commencement of operations |
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Table of Contents
| ING Emerging Markets | |||||||||||||||||
| Fixed Income Fund | ING Global Bond Fund | ||||||||||||||||
| December 21, | June 30, | ||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2006(1) to | ||||||||||||||
| October 31, | October 31, | October 31, | October 31, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||||
FROM OPERATIONS: | |||||||||||||||||
| Net investment income | $ | 7,527,851 | $ | 707,511 | $ | 823,069 | $ | 200,566 | |||||||||
| Net realized gain (loss) on investments, foreign currency related transactions, futures, and swaps | (723,798 | ) | 82,947 | 798,273 | 348,838 | ||||||||||||
| Net change in unrealized appreciation or depreciation on investments, foreign currency related transactions, futures, and swaps | 406,474 | 267,454 | 939,686 | 229,037 | |||||||||||||
| Net increase in net assets resulting from operations | 7,210,527 | 1,057,912 | 2,561,028 | 778,441 | |||||||||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||
| Net investment income: | |||||||||||||||||
| Class A | (1,326,791 | ) | (587,392 | ) | (1,111,960 | ) | (154,905 | ) | |||||||||
| Class B | (17,775 | ) | (4,028 | ) | (6,982 | ) | (8 | ) | |||||||||
| Class C | (40,349 | ) | (9,308 | ) | (15,266 | ) | (71 | ) | |||||||||
| Class I | (6,243,283 | ) | (513 | ) | (47 | ) | (7 | ) | |||||||||
| Net realized gains: | |||||||||||||||||
| Class A | (71,166 | ) | — | (443,199 | ) | — | |||||||||||
| Class B | (814 | ) | — | (718 | ) | — | |||||||||||
| Class C | (946 | ) | — | (756 | ) | — | |||||||||||
| Class I | — | — | (18 | ) | — | ||||||||||||
| Total distributions | (7,701,124 | ) | (601,241 | ) | (1,578,946 | ) | (154,991 | ) | |||||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||
| Net proceeds from sale of shares | 310,896,270 | 26,474,530 | 4,813,090 | 25,224,747 | |||||||||||||
| Dividends reinvested | 6,461,870 | 29,467 | 44,534 | — | |||||||||||||
| 317,358,140 | 26,503,997 | 4,857,624 | 25,224,747 | ||||||||||||||
| Cost of shares redeemed | (27,962,963 | ) | (202,829 | ) | (830,470 | ) | — | ||||||||||
| Net increase in net assets resulting from capital share transactions | 289,395,177 | 26,301,168 | 4,027,154 | 25,224,747 | |||||||||||||
| Net increase in net assets | 288,904,580 | 26,757,839 | 5,009,236 | 25,848,197 | |||||||||||||
NET ASSETS: | |||||||||||||||||
| Beginning of period | 26,757,839 | — | 25,848,197 | — | |||||||||||||
| End of period | $ | 315,662,419 | $ | 26,757,839 | $ | 30,857,433 | $ | 25,848,197 | |||||||||
| Undistributed net investment income (distribution in excess of net investment income) at end of period | $ | — | $ | 113,485 | $ | 24,974 | $ | (11,046 | ) | ||||||||
| (1) | Commencement of operations |
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| ING Diversified | |||||||||
| International Fund | |||||||||
| December 21, | |||||||||
| Year Ended | 2005(1) to | ||||||||
| October 31, | October 31, | ||||||||
| 2007 | 2006 | ||||||||
FROM OPERATIONS: | |||||||||
| Net investment income (loss) | $ | 431,276 | $ | (741,875 | ) | ||||
| Net realized gain (loss) on investments in affiliated underlying funds | 7,816,137 | (1,565,439 | ) | ||||||
| Net change in unrealized appreciation or depreciation on investments in affiliated underlying funds | 97,142,153 | 18,100,115 | |||||||
| Net increase in net assets resulting from operations | 105,389,566 | 15,792,801 | |||||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||
| Net investment income: | |||||||||
| Class A | (968,683 | ) | — | ||||||
| Class B | (17,195 | ) | — | ||||||
| Class C | (76,872 | ) | — | ||||||
| Class I | (55 | ) | — | ||||||
| Class R | (472 | ) | — | ||||||
| Total distributions | (1,063,277 | ) | — | ||||||
FROM CAPITAL SHARE TRANSACTIONS: | |||||||||
| Net proceeds from sale of shares | 299,856,179 | 264,857,407 | |||||||
| Dividends reinvested | 792,330 | — | |||||||
| 300,648,509 | 264,857,407 | ||||||||
| Cost of shares redeemed | (71,791,916 | ) | (17,677,662 | ) | |||||
| Net increase in net assets resulting from capital share transactions | 228,856,593 | 247,179,745 | |||||||
| Net increase in net assets | 333,182,882 | 262,972,546 | |||||||
NET ASSETS: | |||||||||
| Beginning of period | 262,972,546 | — | |||||||
| End of period | $ | 596,155,428 | $ | 262,972,546 | |||||
| Undistributed net investment income at end of period | $ | 3,523,584 | $ | — | |||||
| (1) | Commencement of operations |
83
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | ||||||||||||||||||||||
| September 17, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.76 | 13.07 | 12.41 | 10.49 | 10.00 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.54 | * | 0.54 | 0.47 | * | 0.44 | 0.02 | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 1.84 | 2.85 | 0.92 | 1.87 | 0.47 | ||||||||||||||||
| Total from investment operations | $ | 2.38 | 3.39 | 1.39 | 2.31 | 0.49 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.55 | 0.51 | 0.54 | 0.39 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.75 | 0.19 | 0.19 | — | — | ||||||||||||||||
| Total distributions | $ | 1.30 | 0.70 | 0.73 | 0.39 | — | ||||||||||||||||
| Net asset value, end of period | $ | 16.84 | 15.76 | 13.07 | 12.41 | 10.49 | ||||||||||||||||
| Total Return(2) | % | 15.80 | 26.56 | 11.45 | 22.59 | 4.90 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 182,669 | 108,911 | 73,186 | 11,316 | 4,274 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment(3) | % | 1.26 | 1.27 | 1.28 | 3.44 | 7.00 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment (3)(4) | % | 1.26 | 1.33 | 1.40 | 1.40 | 1.40 | ||||||||||||||||
| Net investment income after expense reimbursement/ recoupment(3)(4) | % | 3.31 | 3.76 | 3.60 | 4.39 | 3.58 | ||||||||||||||||
| Portfolio turnover rate | % | 36 | 50 | 57 | 60 | 3 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| October 24, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.72 | 13.05 | 12.37 | 10.49 | 10.31 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.39 | 0.43 | 0.37 | * | 0.42 | 0.00 | ** | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 1.86 | 2.84 | 0.92 | 1.82 | 0.18 | ||||||||||||||||
| Total from investment operations | $ | 2.25 | 3.27 | 1.29 | 2.24 | 0.18 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.43 | 0.41 | 0.42 | 0.36 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.75 | 0.19 | 0.19 | — | — | ||||||||||||||||
| Total distributions | $ | 1.18 | 0.60 | 0.61 | 0.36 | — | ||||||||||||||||
| Net asset value, end of period | $ | 16.79 | 15.72 | 13.05 | 12.37 | 10.49 | ||||||||||||||||
| Total Return(2) | % | 14.94 | 25.55 | 10.65 | 21.92 | 1.75 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 58,093 | 44,936 | 28,811 | 3,303 | 12 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment(3) | % | 2.01 | 2.02 | 2.03 | 4.19 | 7.75 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment (3)(4) | % | 2.01 | 2.08 | 2.15 | 2.15 | 2.15 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/ recoupment(3)(4) | % | 2.53 | 3.05 | 2.83 | 4.03 | (0.67 | ) | |||||||||||||||
| Portfolio turnover rate | % | 36 | 50 | 57 | 60 | 3 | ||||||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
84
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||||||||||
| October 29, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.69 | 13.02 | 12.37 | 10.48 | 10.44 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.39 | 0.43 | 0.37 | * | 0.39 | 0.00 | ** | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 1.86 | 2.84 | 0.90 | 1.86 | 0.04 | ||||||||||||||||
| Total from investment operations | $ | 2.25 | 3.27 | 1.27 | 2.25 | 0.04 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.44 | 0.41 | 0.43 | 0.36 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.75 | 0.19 | 0.19 | — | — | ||||||||||||||||
| Total distributions | $ | 1.19 | 0.60 | 0.62 | 0.36 | — | ||||||||||||||||
| Net asset value, end of period | $ | 16.75 | 15.69 | 13.02 | 12.37 | 10.48 | ||||||||||||||||
| Total Return(2) | % | 14.94 | 25.62 | 10.51 | 21.99 | 0.38 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 124,765 | 77,426 | 48,965 | 3,655 | 19 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment(3) | % | 2.01 | 2.02 | 2.03 | 4.19 | 7.75 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment (3)(4) | % | 2.01 | 2.08 | 2.15 | 2.15 | 2.15 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/ recoupment(3)(4) | % | 2.54 | 3.03 | 2.82 | 3.99 | (0.88 | ) | |||||||||||||||
| Portfolio turnover rate | % | 36 | 50 | 57 | 60 | 3 | ||||||||||||||||
| Class I | ||||||
| August 1, | ||||||
| 2007(1) to | ||||||
| October 31, | ||||||
| 2007 | ||||||
Per Share Operating Performance: | ||||||
| Net asset value, beginning of period | $ | 15.81 | ||||
| Income from investment operations: | ||||||
| Net investment income | $ | 0.12 | * | |||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 1.03 | ||||
| Total from investment operations | $ | 1.15 | ||||
| Less distributions from: | ||||||
| Net investment income | $ | 0.13 | ||||
| Total distributions | $ | 0.13 | ||||
| Net asset value, end of period | $ | 16.83 | ||||
| Total Return(2) | % | 7.26 | ||||
Ratios and Supplemental Data: | ||||||
| Net assets, end of period (000’s) | $ | 1 | ||||
| Ratios to average net assets: | ||||||
| Expenses(3) | % | 0.90 | ||||
| Net investment income(3) | % | 2.98 | ||||
| Portfolio turnover rate | % | 36 | ||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
85
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class O | ||||||
| November 15, | ||||||
| 2006(1) to | ||||||
| October 31, | ||||||
| 2007 | ||||||
Per Share Operating Performance: | ||||||
| Net asset value, beginning of period | $ | 15.86 | ||||
| Income from investment operations: | ||||||
| Net investment income | $ | 0.55 | * | |||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 1.74 | ||||
| Total from investment operations | $ | 2.29 | ||||
| Less distributions from: | ||||||
| Net investment income | $ | 0.57 | ||||
| Net realized gains on investments | $ | 0.75 | ||||
| Total distributions | $ | 1.32 | ||||
| Net asset value, end of period | $ | 16.83 | ||||
| Total Return(2) | % | 15.12 | ||||
Ratios and Supplemental Data: | ||||||
| Net assets, end of period (000’s) | $ | 23,737 | ||||
| Ratios to average net assets: | ||||||
| Expenses(3) | % | 1.26 | ||||
| Net investment income(3) | % | 3.46 | ||||
| Portfolio turnover rate | % | 36 | ||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
* Calculated using average number of shares outstanding throughout the period.
86
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 10.46 | 7.34 | 7.09 | 6.94 | 4.40 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment loss | $ | (0.03 | ) | (0.06 | ) | (0.06 | ) | (0.05 | ) | (0.02 | ) | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 4.36 | 3.20 | 0.54 | 0.20 | 2.56 | ||||||||||||||||
| Total from investment operations | $ | 4.33 | 3.14 | 0.48 | 0.15 | 2.54 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.26 | 0.02 | 0.23 | — | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.35 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 0.61 | 0.02 | 0.23 | — | — | ||||||||||||||||
| Net asset value, end of year | $ | 14.18 | 10.46 | 7.34 | 7.09 | 6.94 | ||||||||||||||||
| Total Return(2) | % | 43.22 | 42.76 | 6.81 | 2.16 | 57.73 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 157,367 | 121,112 | 87,441 | 91,756 | 101,696 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Expenses | % | 1.44† | 1.42 | 1.56 | 1.44 | 1.57 | ||||||||||||||||
| Net investment loss | % | (0.28 | ) | (0.61 | ) | (0.77 | ) | (0.69 | ) | (0.36 | ) | |||||||||||
| Portfolio turnover rate | % | 121 | 158 | 78 | 77 | 94 | ||||||||||||||||
| Class I | ||||||
| August 1, | ||||||
| 2007(1) to | ||||||
| October 31, | ||||||
| 2007 | ||||||
Per Share Operating Performance: | ||||||
| Net asset value, beginning of period | $ | 12.07 | ||||
| Income from investment operations: | ||||||
| Net investment income | $ | 0.00 | * | |||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.12 | ||||
| Total from investment operations | $ | 2.12 | ||||
| Net asset value, end of period | $ | 14.19 | ||||
| Total Return(2) | % | 17.56 | ||||
Ratios and Supplemental Data: | ||||||
| Net assets, end of period (000’s) | $ | 2 | ||||
| Ratios to average net assets: | ||||||
| Expenses(3) | % | 1.08 | † | |||
| Net investment income(3) | % | 0.09 | ||||
| Portfolio turnover rate | % | 121 | ||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
* Amount is less than $0.005.
† Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio.
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| ING GLOBAL REAL ESTATE FUND | FINANCIAL HIGHLIGHTS |
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 22.23 | 17.14 | 15.40 | 13.06 | 10.40 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.22 | * | 0.20 | * | 0.26 | *† | 0.27 | 0.57 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.13 | 6.41 | 2.94 | † | 3.26 | 2.79 | |||||||||||||||
| Total from investment operations | $ | 3.35 | 6.61 | 3.20 | 3.53 | 3.36 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 1.08 | 0.46 | 0.54 | 0.43 | 0.54 | ||||||||||||||||
| Net realized gains on investments | $ | 0.31 | 1.06 | 0.92 | 0.76 | 0.16 | ||||||||||||||||
| Total distributions | $ | 1.39 | 1.52 | 1.46 | 1.19 | 0.70 | ||||||||||||||||
| Net asset value, end of year | $ | 24.19 | 22.23 | 17.14 | 15.40 | 13.06 | ||||||||||||||||
| Total Return(1) | % | 15.44 | 41.09 | 21.95 | 28.90 | 33.77 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 1,115,493 | 467,405 | 138,314 | 95,561 | 41,549 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment | % | 1.30 | 1.39 | 1.50 | 1.55 | 1.95 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 1.30 | 1.39 | 1.59 | 1.75 | 1.75 | ||||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.96 | 1.04 | 1.58 | † | 2.55 | 5.14 | |||||||||||||||
| Portfolio turnover rate | % | 57 | 39 | 91 | 129 | 124 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 19.20 | 15.01 | 13.67 | 11.74 | 9.43 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.04 | * | 0.05 | * | 0.12 | *† | 0.14 | 0.48 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.69 | 5.56 | 2.59 | † | 2.90 | 2.47 | |||||||||||||||
| Total from investment operations | $ | 2.73 | 5.61 | 2.71 | 3.04 | 2.95 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.95 | 0.36 | 0.45 | 0.35 | 0.48 | ||||||||||||||||
| Net realized gains on investments | $ | 0.31 | 1.06 | 0.92 | 0.76 | 0.16 | ||||||||||||||||
| Total distributions | $ | 1.26 | 1.42 | 1.37 | 1.11 | 0.64 | ||||||||||||||||
| Net asset value, end of year | $ | 20.67 | 19.20 | 15.01 | 13.67 | 11.74 | ||||||||||||||||
| Total Return(1) | % | 14.59 | 40.04 | 21.05 | 27.89 | 32.83 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 57,837 | 31,677 | 12,302 | 4,736 | 1,506 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment | % | 2.05 | 2.14 | 2.25 | 2.30 | 2.70 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 2.05 | 2.14 | 2.34 | 2.50 | 2.50 | ||||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.22 | 0.31 | 0.79 | † | 1.78 | 4.44 | |||||||||||||||
| Portfolio turnover rate | % | 57 | 39 | 91 | 129 | 124 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
† Effective November 1, 2004, the Fund adopted a policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the twelve months ended October 31, 2005 was to decrease the net investment income per share by $0.12 and $0.10, increase net realized and unrealized gain on investments per share by $0.12 and $0.10 and decrease the ratio of net investment income to average net assets from 2.31% to 1.58% and 1.51% to 0.79% on Class A and Class B.
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Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 20.10 | 15.65 | 14.19 | 12.14 | 9.70 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.04 | * | 0.05 | * | 0.12 | *† | 0.14 | 0.45 | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.82 | 5.82 | 2.71 | † | 3.02 | 2.60 | |||||||||||||||
| Total from investment operations | $ | 2.86 | 5.87 | 2.83 | 3.16 | 3.05 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.95 | 0.36 | 0.45 | 0.35 | 0.45 | ||||||||||||||||
| Net realized gains on investments | $ | 0.31 | 1.06 | 0.92 | 0.76 | 0.16 | ||||||||||||||||
| Total distributions | $ | 1.26 | 1.42 | 1.37 | 1.11 | 0.61 | ||||||||||||||||
| Net asset value, end of year | $ | 21.70 | 20.10 | 15.65 | 14.19 | 12.14 | ||||||||||||||||
| Total Return(2) | % | 14.57 | 40.06 | 21.11 | 27.93 | 32.89 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 303,235 | 109,197 | 27,989 | 7,817 | 1,732 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment | % | 2.05 | 2.14 | 2.25 | 2.30 | 2.70 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment (4) | % | 2.05 | 2.14 | 2.34 | 2.50 | 2.50 | ||||||||||||||||
| Net investment income after expense reimbursement/ recoupment(4) | % | 0.20 | 0.29 | 0.78 | † | 1.72 | 4.60 | |||||||||||||||
| Portfolio turnover rate | % | 57 | 39 | 91 | 129 | 124 | ||||||||||||||||
| Class I | ||||||||||||||
| June 3, | ||||||||||||||
| Year Ended October 31, | 2005(1) to | |||||||||||||
| October 31, | ||||||||||||||
| 2007 | 2006 | 2005 | ||||||||||||
Per Share Operating Performance: | ||||||||||||||
| Net asset value, beginning of period | $ | 22.23 | 17.14 | 16.32 | ||||||||||
| Income from investment operations: | ||||||||||||||
| Net investment income | $ | 0.28 | * | 0.28 | * | 0.14 | *†† | |||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.16 | 6.39 | 0.86 | †† | |||||||||
| Total from investment operations | $ | 3.44 | 6.67 | 1.00 | ||||||||||
| Less distributions from: | ||||||||||||||
| Net investment income | $ | 1.15 | 0.52 | 0.18 | ||||||||||
| Net realized gains on investments | $ | 0.31 | 1.06 | — | ||||||||||
| Total distributions | $ | 1.46 | 1.58 | 0.18 | ||||||||||
| Net asset value, end of period | $ | 24.21 | 22.23 | 17.14 | ||||||||||
| Total Return(2) | % | 15.88 | 41.49 | 6.14 | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||
| Net assets, end of period (000’s) | $ | 76,869 | 11,226 | 1,681 | ||||||||||
| Ratios to average net assets: | ||||||||||||||
| Gross expenses prior to expense reimbursement /recoupment(3) | % | 0.95 | 1.06 | 1.22 | ||||||||||
| Net expenses after expense reimbursement/ recoupment (3)(4) | % | 0.95 | 1.06 | 1.30 | ||||||||||
| Net investment income after expense reimbursement/ recoupment(3)(4) | % | 1.24 | 1.40 | 0.85 | † | |||||||||
| Portfolio turnover rate | % | 57 | 39 | 91 | ||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
† Effective November 1, 2004, the Fund adopted a policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the twelve months ended October 31, 2005 was to decrease the net investment income per share by $0.11, increase net realized and unrealized gain on investments per share by $0.11 and decrease the ratio of net investment income to average net assets from 1.51% to 0.78% for Class C.
†† Effective November 1, 2004, the Fund adopted a policy to reduce cost of investments for financial statement purposes by the distributions received in excess of income from Real Estate Investment Trusts. The effect of this change for the five months ended October 31, 2005 was to decrease the net investment income per share by $0.30, increase net realized and unrealized gain on investments per share by $0.30 and decrease the ratio of net investment income to average net assets from 2.60% to 0.85% for Class I.
89
Table of Contents
Selected data for a share of beneficial interest outstanding throughout the period.
| Class O | ||||||
| November 15, | ||||||
| 2006(1) to | ||||||
| October 31, | ||||||
| 2007 | ||||||
Per Share Operating Performance: | ||||||
| Net asset value, beginning of period | $ | 22.20 | ||||
| Income from investment operations: | ||||||
| Net investment income | $ | 0.20 | * | |||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.20 | ||||
| Total from investment operations | $ | 3.40 | ||||
| Less distributions from: | ||||||
| Net investment income | $ | 1.10 | ||||
| Net realized gains on investments | $ | 0.31 | ||||
| Total distributions | $ | 1.41 | ||||
| Net asset value, end of period | $ | 24.19 | ||||
| Total Return(2) | % | 15.68 | ||||
Ratios and Supplemental Data: | ||||||
| Net assets, end of period (000’s) | $ | 26,137 | ||||
| Ratios to average net assets: | ||||||
| Expenses(3) | % | 1.30 | ||||
| Net investment income(3) | % | 0.90 | ||||
| Portfolio turnover rate | % | 57 | ||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
* Calculated using average number of shares outstanding throughout the period.
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Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 21.72 | 18.16 | 15.96 | 14.76 | 12.36 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.01 | 0.08 | 0.09 | (0.04 | ) | (0.06 | ) | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 6.67 | 3.62 | 2.11 | 1.24 | 2.46 | ||||||||||||||||
| Total from investment operations | $ | 6.68 | 3.70 | 2.20 | 1.20 | 2.40 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | 0.14 | — | — | — | ||||||||||||||||
| Total distributions | $ | — | 0.14 | — | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 28.40 | 21.72 | 18.16 | 15.96 | 14.76 | ||||||||||||||||
| Total Return(1) | % | 30.76 | 20.48 | 13.78 | † | 8.13 | 19.42 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 58,600 | 47,305 | 41,941 | 46,133 | 56,877 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 1.77 | 1.78 | 1.90 | 1.77 | 1.93 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(2) | % | 1.82 | 1.78 | 1.85 | 1.85 | 1.85 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 1.81 | 1.77 | 1.85 | 1.85 | 1.85 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 0.04 | 0.40 | 0.46 | (0.21 | ) | (0.35 | ) | ||||||||||||||
| Portfolio turnover rate | % | 66 | 77 | 129 | 101 | 125 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 23.54 | 19.67 | 17.39 | 16.19 | 13.65 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment loss | $ | (0.17 | )* | (0.04 | ) | (0.04 | ) | (0.17 | ) | (0.16 | ) | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 7.21 | 3.91 | 2.32 | 1.37 | 2.70 | ||||||||||||||||
| Total from investment operations | $ | 7.04 | 3.87 | 2.28 | 1.20 | 2.54 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 30.58 | 23.54 | 19.67 | 17.39 | 16.19 | ||||||||||||||||
| Total Return(1) | % | 29.91 | 19.67 | 13.11 | † | 7.41 | 18.61 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 22,049 | 21,364 | 23,483 | 28,559 | 35,459 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 2.42 | 2.43 | 2.55 | 2.42 | 2.58 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(2) | % | 2.47 | 2.43 | 2.50 | 2.50 | 2.50 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 2.46 | 2.42 | 2.50 | 2.50 | 2.50 | ||||||||||||||||
| Net investment loss after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | (0.62 | ) | (0.25 | ) | (0.19 | ) | (0.87 | ) | (1.00 | ) | |||||||||||
| Portfolio turnover rate | % | 66 | 77 | 129 | 101 | 125 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
† In 2005, there was no impact on total return due to payment by affiliate.
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Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 20.93 | 17.50 | 15.48 | 14.41 | 12.14 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment loss | $ | (0.14 | )* | (0.05 | ) | (0.04 | ) | (0.15 | ) | (0.15 | ) | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 6.39 | 3.50 | 2.06 | 1.22 | 2.42 | ||||||||||||||||
| Total from investment operations | $ | 6.25 | 3.45 | 2.02 | 1.07 | 2.27 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | 0.02 | — | — | — | ||||||||||||||||
| Total distributions | $ | — | 0.02 | — | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 27.18 | 20.93 | 17.50 | 15.48 | 14.41 | ||||||||||||||||
| Total Return(2) | % | 29.86 | 19.73 | 13.05 | † | 7.43 | 18.70 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 39,537 | 31,612 | 30,918 | 35,784 | 45,476 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture | % | 2.42 | 2.43 | 2.55 | 2.42 | 2.58 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(4) | % | 2.47 | 2.43 | 2.50 | 2.50 | 2.50 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(4) | % | 2.46 | 2.42 | 2.50 | 2.50 | 2.50 | ||||||||||||||||
| Net investment loss after expense reimbursement/ recoupment and brokerage commission recapture(4) | % | (0.60 | ) | (0.26 | ) | (0.19 | ) | (0.87 | ) | (1.01 | ) | |||||||||||
| Portfolio turnover rate | % | 66 | 77 | 129 | 101 | 125 | ||||||||||||||||
| Class I | ||||||||||
| September 6, | ||||||||||
| Year Ended | 2006(1) to | |||||||||
| October 31, | October 31, | |||||||||
| 2007 | 2006 | |||||||||
Per Share Operating Performance: | ||||||||||
| Net asset value, beginning of period | $ | 21.73 | 21.31 | |||||||
| Income (loss) from investment operations: | ||||||||||
| Net investment gain (loss) | $ | 0.15 | (0.11 | ) | ||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 6.69 | 0.53 | |||||||
| Total from investment operations | $ | 6.84 | 0.42 | |||||||
| Net asset value, end of period | $ | 28.57 | 21.73 | |||||||
| Total Return(2) | % | 31.48 | 1.97 | |||||||
Ratios/ Supplemental Data: | ||||||||||
| Net assets, end of period (000’s) | $ | 7,845 | 3,010 | |||||||
| Ratio to average net assets: | ||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture(3) | % | 1.25 | 1.27 | |||||||
| Net expenses after expense reimbursement/ recoupment and prior to brokerage commission recapture(3)(4) | % | 1.30 | 1.26 | |||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 1.29 | 1.26 | |||||||
| Net investment gain (loss) after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 0.67 | (0.69 | ) | ||||||
| Portfolio turnover rate | % | 66 | 77 | |||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
| ** | Amount is less than $0.005. |
† In 2005, there was no impact on total return due to payment by affiliate.
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Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class Q | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 25.44 | 21.25 | 18.61 | 17.17 | 14.34 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.08 | * | 0.18 | * | 0.15 | 0.01 | (0.01 | ) | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 7.84 | 4.20 | 2.49 | 1.43 | 2.84 | ||||||||||||||||
| Total from investment operations | $ | 7.92 | 4.38 | 2.64 | 1.44 | 2.83 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | 0.19 | — | — | — | ||||||||||||||||
| Total distributions | $ | — | 0.19 | — | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 33.36 | 25.44 | 21.25 | 18.61 | 17.17 | ||||||||||||||||
| Total Return(1) | % | 31.13 | 20.75 | 14.19 | † | 8.39 | 19.74 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 2,652 | 2,757 | 4,387 | 4,223 | 6,454 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture | % | 1.50 | 1.52 | 1.60 | 1.51 | 1.62 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(2) | % | 1.55 | 1.52 | 1.55 | 1.59 | 1.54 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(2) | % | 1.54 | 1.51 | 1.55 | 1.59 | 1.54 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment and brokerage commission recapture (2) | % | 0.29 | 0.75 | 0.75 | 0.05 | (0.04 | ) | |||||||||||||||
| Portfolio turnover rate | % | 66 | 77 | 129 | 101 | 125 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
* Calculated using average number of shares outstanding throughout the period.
| ** | Amount is less than $0.005. |
† In 2005, there was no impact on total return due to payment by affiliate.
93
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Selected data for a share of beneficial interest outstanding throughout the period.
| Class A | Class B | Class C | Class I | |||||||||||||||
| December 20, | December 20, | December 20, | December 20, | |||||||||||||||
| 2006(1) to | 2006(1) to | 2006(1) to | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 10.00 | 10.00 | 10.00 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.14 | * | 0.06 | * | 0.02 | * | 0.13 | * | |||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 1.95 | 1.96 | 2.00 | 2.00 | |||||||||||||
| Total from investment operations | $ | 2.09 | 2.02 | 2.02 | 2.13 | |||||||||||||
| Net asset value, end of period | $ | 12.09 | 12.02 | 12.02 | 12.13 | |||||||||||||
| Total Return(2) | % | 20.90 | 20.20 | 20.20 | 21.30 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 69 | 5 | 55 | 465,657 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Expenses(3) | % | 1.11 | 1.86 | 1.86 | 0.86 | |||||||||||||
| Net investment income(3) | % | 1.37 | 0.67 | 0.25 | 1.29 | |||||||||||||
| Portfolio turnover rate | % | 116 | 116 | 116 | 116 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
* Calculated using average number of shares outstanding throughout the period.
94
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 29.62 | 23.60 | 19.40 | 17.32 | 12.44 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.47 | 0.48 | 0.19 | 0.09 | 0.03 | ||||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions (net of Indian tax) | $ | 11.82 | 5.68 | 3.98 | 2.08 | 4.85 | ||||||||||||||||
| Total from investment operations | $ | 12.29 | 6.16 | 4.17 | 2.17 | 4.88 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.43 | 0.14 | 0.02 | 0.09 | — | ||||||||||||||||
| Total distributions | $ | 0.43 | 0.14 | 0.02 | 0.09 | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.05 | 0.00 | ** | — | |||||||||||||||
| Net asset value, end of year | $ | 41.48 | 29.62 | 23.60 | 19.40 | 17.32 | ||||||||||||||||
| Total Return(1) | % | 41.93 | 26.19 | 21.76 | †† | 12.58 | † | 39.23 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 197,307 | 123,219 | 87,143 | 67,282 | 71,953 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture | % | 1.99 | 2.02 | 2.09 | 2.10 | 2.37 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(2) | % | 1.89 | 1.92 | 2.00 | 2.20 | 2.27 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 1.86 | 1.91 | 2.00 | 2.20 | 2.27 | ||||||||||||||||
| Net investment income after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 1.42 | 1.80 | 0.91 | 0.41 | 0.22 | ||||||||||||||||
| Portfolio turnover rate | % | 51 | 35 | 124 | 88 | 135 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 29.04 | 23.17 | 19.17 | 17.15 | 12.39 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.24 | * | 0.28 | * | 0.04 | (0.04 | ) | (0.06 | ) | ||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions (net of Indian tax) | $ | 11.57 | 5.59 | 3.91 | 2.06 | 4.82 | ||||||||||||||||
| Total from investment operations | $ | 11.81 | 5.87 | 3.95 | 2.02 | 4.76 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.18 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 0.18 | — | — | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.05 | 0.00 | ** | — | |||||||||||||||
| Net asset value, end of year | $ | 40.67 | 29.04 | 23.17 | 19.17 | 17.15 | ||||||||||||||||
| Total Return(1) | % | 40.85 | 25.33 | 20.87 | †† | 11.78 | † | 38.42 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 16,648 | 13,575 | 12,562 | 12,581 | 16,425 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture | % | 2.64 | 2.67 | 2.74 | 2.75 | 3.02 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(2) | % | 2.64 | 2.67 | 2.74 | 2.85 | 2.92 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(2) | % | 2.61 | 2.66 | 2.74 | 2.85 | 2.92 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 0.67 | 1.06 | 0.14 | (0.30 | ) | (0.40 | ) | ||||||||||||||
| Portfolio turnover rate | % | 51 | 35 | 124 | 88 | 135 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
† In 2004, 0.06% of the total return consists of a gain on the disposition of an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 12.52% and 11.72% for Class A and Class B, respectively.
†† In 2005, 0.26% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.50% and 20.61% for Class A and Class B, respectively.
95
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 27.53 | 22.04 | 18.24 | 16.32 | 11.79 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.20 | 0.25 | 0.03 | (0.03 | ) | (0.06 | ) | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions (net of Indian tax) | $ | 10.97 | 5.31 | 3.72 | 1.95 | 4.59 | ||||||||||||||||
| Total from investment operations | $ | 11.17 | 5.56 | 3.75 | 1.92 | 4.53 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.25 | 0.07 | — | — | — | ||||||||||||||||
| Total distributions | $ | 0.25 | 0.07 | — | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.05 | 0.00 | ** | — | |||||||||||||||
| Net asset value, end of year | $ | 38.45 | 27.53 | 22.04 | 18.24 | 16.32 | ||||||||||||||||
| Total Return(2) | % | 40.82 | 25.29 | 20.83 | †† | 11.76 | † | 38.42 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 53,885 | 35,847 | 20,985 | 9,680 | 10,033 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture | % | 2.64 | 2.67 | 2.74 | 2.75 | 3.02 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(4) | % | 2.64 | 2.67 | 2.74 | 2.85 | 2.92 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(4) | % | 2.61 | 2.66 | 2.74 | 2.85 | 2.92 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment and brokerage commission recapture (4) | % | 0.65 | 1.12 | 0.25 | (0.20 | ) | (0.40 | ) | ||||||||||||||
| Portfolio turnover rate | % | 51 | 35 | 124 | 88 | 135 | ||||||||||||||||
| Class I | ||||||||||
| Year | December 21, | |||||||||
| Ended | 2005(1) to | |||||||||
| October 31, | October 31, | |||||||||
| 2007 | 2006 | |||||||||
Per Share Operating Performance: | ||||||||||
| Net asset value, beginning of period | $ | 29.72 | 25.52 | |||||||
| Income from investment operations: | ||||||||||
| Net investment income | $ | 0.55 | 0.65 | * | ||||||
| Net realized and unrealized gain on investments and foreign currency related transactions (net of Indian tax) | $ | 11.90 | 3.55 | |||||||
| Total from investment operations | $ | 12.45 | 4.20 | |||||||
| Less distribution from: | ||||||||||
| Net investment income | $ | 0.54 | — | |||||||
| Total distributions | $ | 0.54 | — | |||||||
| Net asset value, end of period | $ | 41.63 | 29.72 | |||||||
| Total Return(2) | % | 42.41 | 16.46 | |||||||
| Ratios and Supplemental Data: | ||||||||||
| Net assets, end of period (000’s) | $ | 41,551 | 23,456 | |||||||
| Ratio to average net assets: | ||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture(3) | % | 1.56 | 1.55 | |||||||
| Net expenses after expense reimbursement/ recoupment and prior to brokerage commission recapture(3)(4) | % | 1.56 | 1.55 | |||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 1.53 | 1.54 | |||||||
| Net investment income after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 1.71 | 2.73 | |||||||
| Portfolio turnover rate | % | 51 | 35 | |||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
† In 2004, 0.06% of the total return consists of a gain on an investment not meeting the Fund’s investment restrictions. Excluding this item, total return would have been 11.70%.
†† In 2005, 0.27% of the total return on Class C consists of a payment by affiliate. Excluding this item, total return would have been 20.56%.
96
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class Q | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 30.62 | 24.38 | 20.03 | 17.89 | 12.80 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.44 | 0.59 | * | 0.26 | 0.09 | 0.12 | |||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions (net of Indian tax) | $ | 12.31 | 5.81 | 4.07 | 2.17 | 4.97 | ||||||||||||||||
| Total from investment operations | $ | 12.75 | 6.40 | 4.33 | 2.26 | 5.09 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.45 | 0.16 | 0.03 | 0.12 | — | ||||||||||||||||
| Total distributions | $ | 0.45 | 0.16 | 0.03 | 0.12 | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.05 | 0.00 | ** | — | |||||||||||||||
| Net asset value, end of year | $ | 42.92 | 30.62 | 24.38 | 20.03 | 17.89 | ||||||||||||||||
| Total Return(1) | % | 42.05 | 26.37 | 21.89 | †† | 12.70 | † | 39.77 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 21,253 | 10,700 | 10,776 | 8,929 | 18,168 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture | % | 1.81 | 1.80 | 1.85 | 2.00 | 2.03 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(2) | % | 1.81 | 1.80 | 1.85 | 2.10 | 1.93 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(2) | % | 1.78 | 1.79 | 1.85 | 2.10 | 1.93 | ||||||||||||||||
| Net investment income after expense reimbursement/ recoupment and brokerage commission recapture(2) | % | 1.49 | 2.09 | 1.12 | 0.36 | 0.59 | ||||||||||||||||
| Portfolio turnover rate | % | 51 | 35 | 124 | 88 | 135 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sale changes.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
†† In 2005, 0.25% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 21.64%.
97
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | ||||||||||||||||||||||
| July 1, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.56 | 14.79 | 12.38 | 11.01 | 10.00 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.10 | 0.08 | * | 0.06 | 0.11 | (0.00 | )** | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 5.56 | 4.05 | 2.35 | 1.44 | 1.01 | ||||||||||||||||
| Total from investment operations | $ | 5.66 | 4.13 | 2.41 | 1.55 | 1.01 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | — | — | 0.04 | — | ||||||||||||||||
| Return of capital | $ | — | — | — | 0.10 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.68 | 0.36 | — | 0.04 | — | ||||||||||||||||
| Total distributions | $ | 0.68 | 0.36 | — | 0.18 | — | ||||||||||||||||
| Net asset value, end of period | $ | 23.54 | 18.56 | 14.79 | 12.38 | 11.01 | ||||||||||||||||
| Total Return(2) | % | 31.32 | 28.39 | 19.47 | 14.25 | 10.10 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 349,917 | 219,819 | 122,883 | 62,949 | 6,598 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture (3) | % | 1.54 | 1.58 | 1.66 | 1.95 | 6.03 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(3)(4) | % | 1.54 | 1.65 | 1.68 | 1.70 | 1.95 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 1.54 | 1.65 | 1.68 | 1.70 | 1.95 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 0.59 | 0.49 | 0.53 | 0.37 | (0.32 | ) | |||||||||||||||
| Portfolio turnover rate | % | 69 | 65 | 81 | 141 | 50 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| July 8, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.11 | 14.55 | 12.26 | 10.99 | 10.29 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment loss | $ | (0.03 | ) | (0.04 | )* | (0.03 | ) | (0.05 | )* | (0.01 | ) | |||||||||||
| Net realized and unrealized gains on investments and foreign currency related transactions | $ | 5.38 | 3.96 | 2.32 | 1.49 | 0.71 | ||||||||||||||||
| Total from investment operations | $ | 5.35 | 3.92 | 2.29 | 1.44 | 0.70 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | — | — | 0.03 | — | ||||||||||||||||
| Return of capital | $ | — | — | — | 0.10 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.68 | 0.36 | — | 0.04 | — | ||||||||||||||||
| Total distributions | $ | 0.68 | 0.36 | — | 0.17 | — | ||||||||||||||||
| Net asset value, end of period | $ | 22.78 | 18.11 | 14.55 | 12.26 | 10.99 | ||||||||||||||||
| Total Return(2) | % | 30.35 | 27.40 | 18.68 | 13.32 | 6.80 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 50,276 | 38,136 | 22,944 | 11,263 | 1,344 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture (3) | % | 2.29 | 2.33 | 2.41 | 2.70 | 6.78 | ||||||||||||||||
| Net expenses after expense reimbursement and prior to brokerage commission recapture(3)(4) | % | 2.29 | 2.40 | 2.43 | 2.45 | 2.70 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 2.29 | 2.40 | 2.43 | 2.45 | 2.70 | ||||||||||||||||
| Net investment loss after expense reimbursement/recoupment and brokerage commission recapture (3)(4) | % | (0.16 | ) | (0.24 | ) | (0.23 | ) | (0.46 | ) | (1.03 | ) | |||||||||||
| Portfolio turnover rate | % | 69 | 65 | 81 | 141 | 50 | ||||||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is more than $(0.005).
98
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||||||||||
| July 7, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.14 | 14.57 | 12.28 | 11.01 | 10.27 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment loss | $ | (0.03 | ) | (0.04 | )* | (0.03 | ) | (0.04 | )* | (0.01 | ) | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 5.38 | 3.97 | 2.32 | 1.48 | 0.75 | ||||||||||||||||
| Total from investment operations | $ | 5.35 | 3.93 | 2.29 | 1.44 | 0.74 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | — | — | 0.03 | — | ||||||||||||||||
| Return of capital | $ | — | — | — | 0.10 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.68 | 0.36 | — | 0.04 | — | ||||||||||||||||
| Total distributions | $ | 0.68 | 0.36 | — | 0.17 | — | ||||||||||||||||
| Net asset value, end of period | $ | 22.81 | 18.14 | 14.57 | 12.28 | 11.01 | ||||||||||||||||
| Total Return(2) | % | 30.30 | 27.43 | 18.65 | 13.28 | 7.21 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 232,439 | 154,101 | 87,877 | 41,424 | 5,601 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture(3) | % | 2.29 | 2.33 | 2.41 | 2.70 | 6.78 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(3)(4) | % | 2.29 | 2.40 | 2.43 | 2.45 | 2.70 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 2.29 | 2.40 | 2.43 | 2.45 | 2.70 | ||||||||||||||||
| Net investment loss after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | (0.14 | ) | (0.26 | ) | (0.27 | ) | (0.41 | ) | (1.03 | ) | |||||||||||
| Portfolio turnover rate | % | 69 | 65 | 81 | 141 | 50 | ||||||||||||||||
| Class I | ||||||||||||||||||||||
| September 8, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.78 | 14.93 | 12.45 | 11.05 | 10.63 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.16 | 0.13 | * | 0.34 | 0.19 | 0.00 | ** | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 5.65 | 4.08 | 2.14 | 1.39 | 0.42 | ||||||||||||||||
| Total from investment operations | $ | 5.81 | 4.21 | 2.48 | 1.58 | 0.42 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | — | — | 0.04 | — | ||||||||||||||||
| Return of capital | $ | — | — | — | 0.10 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.68 | 0.36 | — | 0.04 | — | ||||||||||||||||
| Total distributions | $ | 0.68 | 0.36 | — | 0.18 | — | ||||||||||||||||
| Net asset value, end of period | $ | 23.91 | 18.78 | 14.93 | 12.45 | 11.05 | ||||||||||||||||
| Total Return(2) | % | 31.76 | 28.67 | 19.92 | 14.53 | 3.95 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 108,732 | 61,248 | 1,049 | 2,547 | 188 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture(3) | % | 1.21 | 1.28 | 1.34 | 1.50 | 5.51 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment and prior to brokerage commission recapture(3)(4) | % | 1.21 | 1.35 | 1.35 | 1.25 | 1.43 | ||||||||||||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 1.21 | 1.34 | 1.35 | 1.25 | 1.43 | ||||||||||||||||
| Net investment income after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 0.94 | 0.78 | 0.97 | 1.58 | 0.21 | ||||||||||||||||
| Portfolio turnover rate | % | 69 | 65 | 81 | 141 | 50 | ||||||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
99
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class Q | ||||||||||||||||||||||
| July 10, | ||||||||||||||||||||||
| Year Ended October 31, | 2003(1) to | |||||||||||||||||||||
| October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.61 | 14.82 | 12.40 | 11.02 | 10.13 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.17 | * | 0.07 | * | 0.08 | 0.09 | (0.00 | )** | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 5.53 | 4.08 | 2.34 | 1.46 | 0.89 | ||||||||||||||||
| Total from investment operations | $ | 5.70 | 4.15 | 2.42 | 1.55 | 0.89 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | — | — | 0.03 | — | ||||||||||||||||
| Return of capital | $ | — | — | — | 0.10 | — | ||||||||||||||||
| Net realized gains on investments | $ | 0.68 | 0.36 | — | 0.04 | — | ||||||||||||||||
| Total distributions | $ | 0.68 | 0.36 | — | 0.17 | — | ||||||||||||||||
| Net asset value, end of period | $ | 23.63 | 18.61 | 14.82 | 12.40 | 11.02 | ||||||||||||||||
| Total Return(2) | % | 31.45 | 28.47 | 19.52 | 14.28 | 8.79 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 856 | 1,196 | 1,079 | 1,054 | 421 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture(3) | % | 1.45 | 1.53 | 1.59 | 1.85 | 5.93 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(3)(4) | % | 1.45 | 1.60 | 1.60 | 1.60 | 1.85 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 1.45 | 1.60 | 1.60 | 1.60 | 1.85 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 0.82 | 0.43 | 0.53 | 0.34 | (0.17 | ) | |||||||||||||||
| Portfolio turnover rate | % | 69 | 65 | 81 | 141 | 50 | ||||||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is more than $(0.005).
100
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| December 21, | January 6, | |||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 12.49 | 10.00 | 12.42 | 10.60 | |||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||
| Net investment income (loss) | $ | 0.07 | 0.06 | (0.03 | )* | 0.05 | * | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 11.93 | 2.43 | 11.79 | 1.77 | |||||||||||||
| Total from investment operations | $ | 12.00 | 2.49 | 11.76 | 1.82 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.06 | — | 0.04 | — | |||||||||||||
| Net realized gains on investments | $ | 0.00 | ** | — | 0.00 | ** | — | |||||||||||
| Total distributions | $ | 0.06 | — | 0.04 | — | |||||||||||||
| Net asset value, end of period | $ | 24.43 | 12.49 | 24.14 | 12.42 | |||||||||||||
| Total Return(2) | % | 96.41 | 24.90 | 94.92 | 17.17 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 73,804 | 23,709 | 7,414 | 1,957 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Expenses(3) | % | 1.91 | 2.64 | 2.66 | 3.39 | |||||||||||||
| Net investment income (loss)(3) | % | 0.54 | 0.75 | (0.19 | ) | 0.47 | ||||||||||||
| Portfolio turnover rate | % | 109 | 108 | 109 | 108 | |||||||||||||
| Class C | Class I | |||||||||||||||||
| January 11, | May 8, | |||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 12.43 | 10.67 | 12.50 | 12.84 | |||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||
| Net investment income (loss) | $ | (0.03 | )* | 0.05 | * | 0.11 | 0.08 | |||||||||||
| Net realized and unrealized gain (loss) on investments and foreign currency related transactions | $ | 11.79 | 1.71 | 11.93 | (0.42 | ) | ||||||||||||
| Total from investment operations | $ | 11.76 | 1.76 | 12.04 | (0.34 | ) | ||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.03 | — | 0.08 | — | |||||||||||||
| Net realized gains on investments | $ | 0.00 | ** | — | 0.00 | ** | — | |||||||||||
| Total distributions | $ | 0.03 | — | 0.08 | — | |||||||||||||
| Net asset value, end of period | $ | 24.16 | 12.43 | 24.46 | 12.50 | |||||||||||||
| Total Return(2) | % | 94.75 | 16.49 | 96.81 | (2.65 | ) | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 12,386 | 2,124 | 52 | 22 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Expenses(3) | % | 2.66 | 3.39 | 1.66 | 2.39 | |||||||||||||
| Net investment income (loss)(3) | % | (0.20 | ) | 0.53 | 0.73 | 1.47 | ||||||||||||
| Portfolio turnover rate | % | 109 | 108 | 109 | 108 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
* Calculated using average number of shares outstanding throughout the period.
101
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| Year | December 21, | Year | January 12, | |||||||||||||||
| Ended | 2005(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.68 | 10.00 | 11.63 | 10.43 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.14 | * | 0.14 | * | 0.09 | * | 0.06 | * | |||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.48 | 1.54 | 2.51 | 1.14 | |||||||||||||
| Total from investment operations | $ | 2.62 | 1.68 | 2.60 | 1.20 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.08 | — | 0.06 | — | |||||||||||||
| Net realized gains on investments | $ | 0.27 | — | 0.27 | — | |||||||||||||
| Total distributions | $ | 0.35 | — | 0.33 | — | |||||||||||||
| Net asset value, end of period | $ | 13.95 | 11.68 | 13.90 | 11.63 | |||||||||||||
| Total Return(2) | % | 22.98 | 16.80 | 22.85 | 11.51 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 2,233 | 12,513 | 734 | 264 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment(3) | % | 1.13 | 1.30 | 1.89 | 2.05 | |||||||||||||
| Net expenses after expense reimbursement/ recoupment (3)(4) | % | 1.16 | 1.15 | 1.92 | 1.90 | |||||||||||||
| Net investment income after expense reimbursement/ recoupment(3)(4) | % | 1.17 | 1.50 | 0.67 | 0.64 | |||||||||||||
| Portfolio turnover rate | % | 213 | 188 | 213 | 188 | |||||||||||||
| Class C | Class I | |||||||||||||||||
| Year | January 12, | Year | December 21, | |||||||||||||||
| Ended | 2006(1) to | Ended | 2005(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.61 | 10.43 | 11.70 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.09 | * | 0.08 | * | 0.20 | 0.16 | * | ||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.50 | 1.10 | 2.55 | 1.54 | |||||||||||||
| Total from investment operations | $ | 2.59 | 1.18 | 2.75 | 1.70 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.04 | — | 0.12 | — | |||||||||||||
| Net realized gains on investments | $ | 0.27 | — | 0.27 | — | |||||||||||||
| Total distributions | $ | 0.31 | — | 0.39 | — | |||||||||||||
| Net asset value, end of period | $ | 13.89 | 11.61 | 14.06 | 11.70 | |||||||||||||
| Total Return(2) | % | 22.81 | 11.31 | 24.14 | 17.00 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 1,126 | 534 | 118,924 | 78,581 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment(3) | % | 1.89 | 2.05 | 0.84 | 1.05 | |||||||||||||
| Net expenses after expense reimbursement/ recoupment(3)(4) | % | 1.92 | 1.90 | 0.87 | 0.90 | |||||||||||||
| Net investment income after expense reimbursement/ recoupment(3)(4) | % | 0.69 | 0.87 | 1.78 | 1.69 | |||||||||||||
| Portfolio turnover rate | % | 213 | 188 | 213 | 188 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
102
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| Year | December 21, | Year | January 9, | |||||||||||||||
| Ended | 2005(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.39 | 10.00 | 11.33 | 10.42 | |||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||
| Net investment income (loss) | $ | 0.01 | * | 0.04 | (0.09 | ) | (0.04 | )* | ||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.76 | 1.35 | 3.71 | 0.95 | |||||||||||||
| Total from investment operations | $ | 3.77 | 1.39 | 3.62 | 0.91 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.05 | — | 0.03 | — | |||||||||||||
| Net realized gains on investments | $ | 0.25 | — | 0.25 | — | |||||||||||||
| Total distributions | $ | 0.30 | — | 0.28 | — | |||||||||||||
| Net asset value, end of period | $ | 14.86 | 11.39 | 14.67 | 11.33 | |||||||||||||
| Total Return(2) | % | 33.89 | 13.90 | 32.67 | 8.73 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 4,592 | 3,677 | 943 | 66 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement/ recoupment and brokerage commission recapture(3) | % | 1.48 | 1.84 | 2.23 | 2.59 | |||||||||||||
| Net expenses after expense reimbursement/ recoupment and prior to brokerage commission recapture(3)(4) | % | 1.50 | 1.50 | 2.25 | 2.25 | |||||||||||||
| Net expenses after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 1.50 | 1.50 | 2.25 | 2.25 | |||||||||||||
| Net investment income (loss) after expense reimbursement/ recoupment and brokerage commission recapture(3)(4) | % | 0.08 | 0.32 | (0.88 | ) | (0.43 | ) | |||||||||||
| Portfolio turnover rate | % | 71 | 91 | 71 | 91 | |||||||||||||
| Class C | Class I | |||||||||||||||||
| Year | January 24, | Year | December 21, | |||||||||||||||
| Ended | 2006(1) to | Ended | 2005(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.35 | 10.28 | 11.43 | 10.00 | |||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||
| Net investment income (loss) | $ | (0.12 | ) | (0.03 | ) | 0.06 | * | 0.02 | ||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.73 | 1.10 | 3.75 | 1.41 | |||||||||||||
| Total from investment operations | $ | 3.61 | 1.07 | 3.81 | 1.43 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.00 | ** | — | 0.09 | — | ||||||||||||
| Net realized gains on investments | $ | 0.25 | — | 0.25 | — | |||||||||||||
| Total distributions | $ | 0.25 | — | 0.34 | — | |||||||||||||
| Net asset value, end of period | $ | 14.71 | 11.35 | 14.90 | 11.43 | |||||||||||||
| Total Return(2) | % | 32.45 | 10.41 | 34.14 | 14.30 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 971 | 65 | 140,901 | 47,200 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture(3) | % | 2.23 | 2.59 | 1.13 | 1.56 | |||||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(3)(4) | % | 2.25 | 2.25 | 1.15 | 1.22 | |||||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 2.25 | 2.25 | 1.15 | 1.22 | |||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | (0.97 | ) | (0.50 | ) | 0.47 | 0.39 | |||||||||||
| Portfolio turnover rate | % | 71 | 91 | 71 | 91 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
103
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | Class C | Class I | |||||||||||||||
| June 28, | June 28, | June 28, | June 28, | |||||||||||||||
| 2007(1) to | 2007(1) to | 2007(1) to | 2007(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 10.00 | 10.00 | 10.00 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.06 | * | 0.03 | * | 0.03 | * | 0.07 | * | |||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 0.51 | 0.52 | 0.52 | 0.51 | |||||||||||||
| Total from investment operations | $ | 0.57 | 0.55 | 0.55 | 0.58 | |||||||||||||
| Net asset value, end of period | $ | 10.57 | 10.55 | 10.55 | 10.58 | |||||||||||||
| Total Return(2) | % | 5.70 | 5.50 | 5.50 | 5.80 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 4,122 | 239 | 1,334 | 55,611 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement(3) | % | 1.64 | 2.39 | 2.39 | 1.39 | |||||||||||||
| Net expenses after expense reimbursement(3)(4) | % | 1.40 | 2.15 | 2.15 | 1.15 | |||||||||||||
| Net investment income after expense reimbursement (3)(4) | % | 1.81 | 1.09 | 1.08 | 1.95 | |||||||||||||
| Portfolio turnover rate | % | 7 | 7 | 7 | 7 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
104
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 13.20 | 10.97 | 9.78 | 8.48 | 7.05 | ||||||||||||||||
| Income from investment operations: | �� | |||||||||||||||||||||
| Net investment income | $ | 0.03 | 0.12 | 0.10 | 0.09 | 0.04 | ||||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 3.67 | 2.28 | 1.18 | 1.22 | 1.37 | ||||||||||||||||
| Total from investment operations | $ | 3.70 | 2.40 | 1.28 | 1.31 | 1.41 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.15 | 0.17 | 0.10 | 0.01 | 0.03 | ||||||||||||||||
| Net realized gains on investments | $ | 1.14 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 1.29 | 0.17 | 0.10 | 0.01 | 0.03 | ||||||||||||||||
| Redemption fees applied to capital | $ | — | — | — | 0.00 | ** | 0.05 | |||||||||||||||
| Payment by affiliate | $ | — | — | 0.01 | — | — | ||||||||||||||||
| Net asset value, end of year | $ | 15.61 | 13.20 | 10.97 | 9.78 | 8.48 | ||||||||||||||||
| Total Return(1) | % | 30.37 | 22.12 | 13.30 | †† | 15.49 | 20.72 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 64,631 | 58,697 | 51,193 | 47,551 | 43,821 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 1.65 | 1.65 | 1.65 | 1.64 | 1.87 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 1.65 | † | 1.65 | 1.65 | 1.68 | 1.85 | |||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.23 | 0.96 | 0.94 | 0.78 | 0.64 | ||||||||||||||||
| Portfolio turnover rate | % | 130 | 173 | 116 | 90 | 100 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 12.69 | 10.55 | 9.43 | 8.22 | 6.91 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | (0.07 | )* | 0.03 | * | 0.02 | (0.00 | )** | (0.00 | )** | ||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 3.53 | 2.20 | 1.14 | 1.21 | 1.31 | ||||||||||||||||
| Total from investment operations | $ | 3.46 | 2.23 | 1.16 | 1.21 | 1.31 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.05 | 0.09 | 0.05 | — | — | ||||||||||||||||
| Net realized gains of investments | $ | 1.14 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 1.19 | 0.09 | 0.05 | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.01 | — | — | ||||||||||||||||
| Net asset value, end of year | $ | 14.96 | 12.69 | 10.55 | 9.43 | 8.22 | ||||||||||||||||
| Total Return(1) | % | 29.42 | 21.23 | 12.41 | †† | 14.72 | 18.96 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 17,311 | 16,822 | 16,338 | 15,069 | 12,466 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 2.40 | 2.40 | 2.40 | 2.39 | 2.62 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 2.40 | † | 2.40 | 2.40 | 2.43 | 2.60 | |||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment(2) | % | (0.51 | ) | 0.22 | 0.19 | (0.02 | ) | (0.05 | ) | |||||||||||||
| Portfolio turnover rate | % | 130 | 173 | 116 | 90 | 100 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005 or more than $(0.005).
† Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio.
†† In 2005, 0.10% of the total return on Class A and Class B, consists of a payment by affiliate. Excluding this item, total return would have been 13.20% and 12.31% for Class A and Class B, respectively.
105
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class C | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 12.70 | 10.55 | 9.42 | 8.22 | 6.91 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | (0.07 | ) | 0.04 | 0.03 | (0.00 | )** | (0.00 | )** | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 3.54 | 2.19 | 1.13 | 1.20 | 1.31 | ||||||||||||||||
| Total from investment operations | $ | 3.47 | 2.23 | 1.16 | 1.20 | 1.31 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.06 | 0.08 | 0.04 | — | 0.00 | ** | |||||||||||||||
| Net realized gains on investments | $ | 1.14 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 1.20 | 0.08 | 0.04 | — | 0.00 | ** | |||||||||||||||
| Payment by affiliate | $ | — | — | 0.01 | — | — | ||||||||||||||||
| Net asset value, end of year | $ | 14.97 | 12.70 | 10.55 | 9.42 | 8.22 | ||||||||||||||||
| Total Return(1) | % | 29.46 | 21.25 | 12.46 | †† | 14.60 | 18.97 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 19,104 | 15,918 | 15,008 | 16,230 | 14,526 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 2.40 | 2.40 | 2.40 | 2.39 | 2.62 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 2.40 | † | 2.40 | 2.40 | 2.43 | 2.60 | |||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment(2) | % | (0.52 | ) | 0.21 | 0.18 | (0.04 | ) | (0.05 | ) | |||||||||||||
| Portfolio turnover rate | % | 130 | 173 | 116 | 90 | 100 | ||||||||||||||||
| Class I | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 13.16 | 10.94 | 9.76 | 8.45 | 7.06 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.06 | * | 0.15 | * | 0.14 | 0.09 | 0.10 | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 3.70 | 2.29 | 1.18 | 1.25 | 1.34 | ||||||||||||||||
| Total from investment operations | $ | 3.76 | 2.44 | 1.32 | 1.34 | 1.44 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.21 | 0.22 | 0.15 | 0.03 | 0.05 | ||||||||||||||||
| Net realized gains on investments | $ | 1.14 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 1.35 | 0.22 | 0.15 | 0.03 | 0.05 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.01 | — | — | ||||||||||||||||
| Net asset value, end of year | $ | 15.57 | 13.16 | 10.94 | 9.76 | 8.45 | ||||||||||||||||
| Total Return(1) | % | 31.02 | 22.56 | 13.73 | †† | 15.94 | 20.53 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 10,251 | 13,354 | 23,452 | 17,211 | 11,582 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 1.28 | 1.25 | 1.26 | 1.22 | 1.34 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 1.28 | † | 1.25 | 1.26 | 1.26 | 1.33 | |||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.46 | 1.27 | 1.34 | 1.13 | 1.29 | ||||||||||||||||
| Portfolio turnover rate | % | 130 | 173 | 116 | 90 | 100 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005 or more than $(0.005).
† Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio.
†† In 2005, 0.10% of the total return on Class C and Class I, consists of a payment by affiliate. Excluding this item, total return would have been 12.36% and 13.63% for Class C and Class I, respectively.
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Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class Q | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 13.10 | 10.89 | 9.72 | 8.43 | 7.04 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.05 | 0.14 | 0.08 | 0.06 | 0.07 | ||||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 3.64 | 2.27 | 1.20 | 1.25 | 1.37 | ||||||||||||||||
| Total from investment operations | $ | 3.69 | 2.41 | 1.28 | 1.31 | 1.44 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.18 | 0.20 | 0.12 | 0.02 | 0.05 | ||||||||||||||||
| Net realized gains on investments | $ | 1.14 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 1.32 | 0.20 | 0.12 | 0.02 | 0.05 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.01 | — | — | ||||||||||||||||
| Net asset value, end of year | $ | 15.47 | 13.10 | 10.89 | 9.72 | 8.43 | ||||||||||||||||
| Total Return(1) | % | 30.55 | 22.38 | 13.41 | †† | 15.61 | 20.51 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 32,532 | 27,114 | 14,544 | 7,274 | 14,755 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 1.52 | 1.50 | 1.51 | 1.56 | 1.59 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 1.52 | † | 1.50 | 1.51 | 1.60 | 1.59 | |||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.40 | 1.19 | 1.00 | 0.73 | 0.91 | ||||||||||||||||
| Portfolio turnover rate | % | 130 | 173 | 116 | 90 | 100 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
† Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio.
†† In 2005, 0.10% of the total return on Class Q, consists of a payment by affiliate. Excluding this item, total return would have been 13.31% for Class Q.
107
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| Year | February 28, | Year | February 28, | |||||||||||||||
| Ended | 2006(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.63 | 10.00 | 11.59 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.13 | * | 0.09 | * | 0.03 | * | 0.04 | * | |||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.14 | 1.60 | 3.14 | 1.59 | |||||||||||||
| Total from investment operations | $ | 3.27 | 1.69 | 3.17 | 1.63 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.34 | 0.06 | 0.26 | 0.04 | |||||||||||||
| Total distributions | $ | 0.34 | 0.06 | 0.26 | 0.04 | |||||||||||||
| Net asset value, end of period | $ | 14.56 | 11.63 | 14.50 | 11.59 | |||||||||||||
| Total Return(2) | % | 28.49 | 16.94 | 27.69 | 16.38 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 271,425 | 49,798 | 11,819 | 1,639 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement(4) | % | 1.51 | 2.01 | 2.26 | 2.76 | |||||||||||||
| Net expenses after expense reimbursement(3)(4) | % | 1.50 | 1.50 | 2.25 | 2.25 | |||||||||||||
| Net investment income after expense reimbursement (3)(4) | % | 0.99 | 1.33 | 0.25 | 0.51 | |||||||||||||
| Portfolio turnover rate | % | 44 | 29 | 44 | 29 | |||||||||||||
| Class C | Class I | |||||||||||||||||
| Year | February 28, | Year | February 28, | |||||||||||||||
| Ended | 2006(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.59 | 10.00 | 11.64 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.03 | * | 0.04 | * | 0.16 | * | 0.08 | * | |||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.13 | 1.59 | 3.15 | 1.63 | |||||||||||||
| Total from investment operations | $ | 3.16 | 1.63 | 3.31 | 1.71 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.26 | 0.04 | 0.37 | 0.07 | |||||||||||||
| Total distributions | $ | 0.26 | 0.04 | 0.37 | 0.07 | |||||||||||||
| Net asset value, end of period | $ | 14.49 | 11.59 | 14.58 | 11.64 | |||||||||||||
| Total Return(2) | % | 27.58 | 16.31 | 28.80 | 17.23 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 121,529 | 17,075 | 127,029 | 22,336 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement(4) | % | 2.26 | 2.76 | 1.26 | 1.76 | |||||||||||||
| Net expenses after expense reimbursement(3)(4) | % | 2.25 | 2.25 | 1.25 | 1.25 | |||||||||||||
| Net investment income after expense reimbursement (3)(4) | % | 0.24 | 0.54 | 1.22 | 1.09 | |||||||||||||
| Portfolio turnover rate | % | 44 | 29 | 44 | 29 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
(4) Annualized for periods less than one year.
* Calculated using average number of shares outstanding throughout the period.
108
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 47.15 | 37.75 | 29.27 | 25.37 | 18.35 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.31 | 0.29 | 0.33 | * | 0.02 | 0.01 | |||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 19.25 | 9.44 | 8.05 | 3.86 | 7.01 | ||||||||||||||||
| Total from investment operations | $ | 19.56 | 9.73 | 8.38 | 3.88 | 7.02 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.28 | 0.33 | — | 0.00 | ** | — | |||||||||||||||
| Total distributions | $ | 0.28 | 0.33 | — | 0.00 | ** | — | |||||||||||||||
| Payment by affiliate | $ | — | — | 0.10 | 0.02 | — | ||||||||||||||||
| Net asset value, end of year | $ | 66.43 | 47.15 | 37.75 | 29.27 | 25.37 | ||||||||||||||||
| Total Return(1) | % | 41.67 | 25.91 | 28.97 | †† | 15.39 | † | 38.26 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 523,535 | 243,020 | 173,612 | 154,658 | 150,043 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 1.60 | 1.66 | 1.74 | 1.72 | 1.94 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 1.60 | 1.66 | 1.74 | 1.75 | 1.95 | ||||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.67 | 0.67 | 0.98 | 0.07 | 0.00 | ** | |||||||||||||||
| Portfolio turnover rate | % | 93 | 85 | 124 | 106 | 114 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 48.53 | 38.83 | 30.30 | 26.43 | 19.25 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.00 | * ** | (0.01 | )* | 0.10 | * | (0.19 | ) | (0.24 | ) | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 19.78 | 9.75 | 8.33 | 4.04 | 7.42 | ||||||||||||||||
| Total from investment operations | $ | 19.78 | 9.74 | 8.43 | 3.85 | 7.18 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | 0.04 | — | — | — | ||||||||||||||||
| Total distributions | $ | — | 0.04 | — | — | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.10 | 0.02 | — | ||||||||||||||||
| Net asset value, end of year | $ | 68.31 | 48.53 | 38.83 | 30.30 | 26.43 | ||||||||||||||||
| Total Return(1) | % | 40.76 | 25.10 | 28.15 | †† | 14.64 | † | 37.30 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 65,619 | 58,469 | 57,131 | 58,318 | 62,104 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 2.25 | 2.31 | 2.39 | 2.37 | 2.59 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 2.25 | 2.31 | 2.39 | 2.40 | 2.60 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment(2) | % | 0.00 | ** | (0.03 | ) | 0.29 | (0.60 | ) | (0.68 | ) | ||||||||||||
| Portfolio turnover rate | % | 93 | 85 | 124 | 106 | 114 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by ING Investments, LLC within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005 or 0.005%.
† In 2004, the Sub-Adviser fully reimbursed the Fund for a loss incurred from a transaction not meeting the Fund’s investment guidelines, which otherwise would have reduced total return by 0.07%.
†† In 2005, 0.34% and 0.33% of the total return on Class A and Class B, respectively, consists of a payment by affiliate. Excluding this item, total return would have been 28.63% and 27.82% on Class A and Class B, respectively.
109
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 44.39 | 35.59 | 27.77 | 24.23 | 17.65 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.00 | * ** | (0.00 | )** | 0.10 | * | (0.17 | ) | (0.29 | ) | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 18.09 | 8.91 | 7.62 | 3.70 | 6.87 | ||||||||||||||||
| Total from investment operations | $ | 18.09 | 8.91 | 7.72 | 3.53 | 6.58 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.00 | ** | 0.11 | — | — | — | |||||||||||||||
| Total distributions | $ | 0.00 | ** | 0.11 | — | — | — | |||||||||||||||
| Payment by affiliate | $ | — | — | 0.10 | 0.01 | — | ||||||||||||||||
| Net asset value, end of year | $ | 62.48 | 44.39 | 35.59 | 27.77 | 24.23 | ||||||||||||||||
| Total Return(2) | % | 40.76 | 25.09 | 28.16 | †† | 14.61 | † | 37.28 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 104,274 | 65,534 | 52,420 | 47,793 | 50,227 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 2.25 | 2.31 | 2.39 | 2.37 | 2.59 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (4) | % | 2.25 | 2.31 | 2.39 | 2.40 | 2.60 | ||||||||||||||||
| Net investment income (loss) after expense reimbursement/recoupment(4) | % | 0.01 | (0.01 | ) | 0.30 | (0.60 | ) | (0.68 | ) | |||||||||||||
| Portfolio turnover rate | % | 93 | 85 | 124 | 106 | 114 | ||||||||||||||||
| Class I | ||||||||||
| Year | December 21, | |||||||||
| Ended | 2005(1) to | |||||||||
| October 31, | October 31, | |||||||||
| 2007 | 2006 | |||||||||
Per Share Operating Performance: | ||||||||||
| Net asset value, beginning of period | $ | 47.35 | 40.64 | |||||||
| Income from investment operations: | ||||||||||
| Net investment income | $ | 0.60 | 0.39 | * | ||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 19.25 | 6.32 | |||||||
| Total from investment operations | $ | 19.85 | 6.71 | |||||||
| Less distributions from: | ||||||||||
| Net investment income | $ | 0.48 | — | |||||||
| Total distributions | $ | 0.48 | — | |||||||
| Net asset value, end of period | $ | 66.72 | 47.35 | |||||||
| Total Return(2) | % | 42.24 | 16.51 | |||||||
Ratios and Supplemental Data: | ||||||||||
| Net assets, end of period (000’s) | $ | 376,737 | 137,184 | |||||||
| Ratios to average net assets: | ||||||||||
| Gross expenses prior to expense reimbursement/recoupment(3) | % | 1.20 | 1.20 | |||||||
| Net expenses after expense reimbursement/recoupment (3)(4) | % | 1.20 | 1.20 | |||||||
| Net investment income after expense reimbursement/recoupment(3)(4) | % | 1.12 | 1.02 | |||||||
| Portfolio turnover rate | % | 93 | 85 | |||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is more than $(0.005) or less than $0.005.
† In 2004, the Sub-Adviser fully reimbursed the Fund for a loss incurred from a transaction not meeting the Fund’s investment guidelines, which otherwise would have reduced total return by 0.07%.
†† In 2005, 0.36% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 27.80%.
110
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class Q | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 50.65 | 40.53 | 31.34 | 27.11 | 19.54 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.48 | 0.37 | 0.43 | * | 0.10 | 0.21 | |||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions, net of Indian capital gains tax | $ | 20.62 | 10.16 | 8.66 | 4.13 | 7.36 | ||||||||||||||||
| Total from investment operations | $ | 21.10 | 10.53 | 9.09 | 4.23 | 7.57 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.34 | 0.41 | — | 0.01 | — | ||||||||||||||||
| Total distributions | $ | 0.34 | 0.41 | — | 0.01 | — | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.10 | 0.01 | — | ||||||||||||||||
| Net asset value, end of year | $ | 71.41 | 50.65 | 40.53 | 31.34 | 27.11 | ||||||||||||||||
| Total Return(1) | % | 41.87 | 26.14 | 29.32 | †† | 15.66 | † | 38.74 | ||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 131,142 | 82,245 | 57,846 | 61,166 | 79,140 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment | % | 1.45 | 1.48 | 1.49 | 1.47 | 1.58 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment (2) | % | 1.45 | 1.48 | 1.49 | 1.50 | 1.59 | ||||||||||||||||
| Net investment income after expense reimbursement/recoupment(2) | % | 0.81 | 0.83 | 1.18 | 0.28 | 0.35 | ||||||||||||||||
| Portfolio turnover rate | % | 93 | 85 | 124 | 106 | 114 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
(2) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
| * | Calculated using average number of shares outstanding throughout the period. |
† In 2004, the Sub-Adviser fully reimbursed the Fund for a loss incurred from a transaction not meeting the Fund’s investment guidelines, which otherwise would have reduced total return by 0.07%.
| †† | In 2005, 0.36% of the total return consists of a payment by affiliate. Excluding this item, total return would have been 28.96%. |
111
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 21.52 | 18.33 | 16.90 | 13.71 | 10.40 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.24 | * | 0.18 | * | 0.17 | 0.13 | 0.08 | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.73 | 4.58 | 2.28 | 3.15 | 3.48 | ||||||||||||||||
| Total from investment operations | $ | 3.97 | 4.76 | 2.45 | 3.28 | 3.56 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.20 | 0.16 | 0.22 | 0.09 | 0.05 | ||||||||||||||||
| Net realized gains on investments | $ | 2.14 | 1.41 | 0.80 | — | 0.20 | ||||||||||||||||
| Total distributions | $ | 2.34 | 1.57 | 1.02 | 0.09 | 0.25 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 23.15 | 21.52 | 18.33 | 16.90 | 13.71 | ||||||||||||||||
| Total Return(1) | % | 19.87 | 27.64 | 15.06 | † | 24.03 | 35.11 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 2,136,218 | 1,995,027 | 1,732,332 | 1,869,868 | 1,641,943 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to brokerage commission recapture | % | 1.59 | 1.60 | 1.60 | 1.61 | 1.74 | ||||||||||||||||
| Net expenses after brokerage commission recapture | % | 1.59 | 1.60 | 1.60 | 1.61 | 1.74 | ||||||||||||||||
| Net investment income after brokerage commission recapture | % | 1.08 | 0.90 | 0.88 | 0.79 | 0.66 | ||||||||||||||||
| Portfolio turnover rate | % | 32 | 25 | 21 | 29 | 9 | ||||||||||||||||
| Class B | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 21.07 | 17.95 | 16.58 | 13.45 | 10.23 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.08 | * | 0.04 | * | 0.05 | 0.02 | (0.00 | )** | |||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.66 | 4.50 | 2.23 | 3.11 | 3.42 | ||||||||||||||||
| Total from investment operations | $ | 3.74 | 4.54 | 2.28 | 3.13 | 3.42 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.03 | 0.01 | 0.11 | — | — | ||||||||||||||||
| Net realized gains on investments | $ | 2.14 | 1.41 | 0.80 | — | 0.20 | ||||||||||||||||
| Total distributions | $ | 2.17 | 1.42 | 0.91 | — | 0.20 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 22.64 | 21.07 | 17.95 | 16.58 | 13.45 | ||||||||||||||||
| Total Return(1) | % | 19.03 | 26.81 | 14.21 | † | 23.27 | 34.11 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 301,705 | 368,952 | 411,071 | 454,952 | 420,651 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to brokerage commission recapture | % | 2.29 | 2.30 | 2.30 | 2.31 | 2.44 | ||||||||||||||||
| Net expenses after brokerage commission recapture | % | 2.29 | 2.30 | 2.30 | 2.31 | 2.44 | ||||||||||||||||
| Net investment income (loss) after brokerage commission recapture | % | 0.39 | 0.20 | 0.17 | 0.09 | (0.04 | ) | |||||||||||||||
| Portfolio turnover rate | % | 32 | 25 | 21 | 29 | 9 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005 or more than $(0.005).
† In 2005, there was no impact on total return due to payment by affiliate.
112
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class C | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 20.98 | 17.91 | 16.54 | 13.42 | 10.21 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | 0.08 | * | 0.05 | 0.04 | 0.02 | (0.00 | )* | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.65 | 4.46 | 2.24 | 3.10 | 3.41 | ||||||||||||||||
| Total from investment operations | $ | 3.73 | 4.51 | 2.28 | 3.12 | 3.41 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.05 | 0.03 | 0.11 | — | — | ||||||||||||||||
| Net realized gains on investments | $ | 2.14 | 1.41 | 0.80 | — | 0.20 | ||||||||||||||||
| Total distributions | $ | 2.19 | 1.44 | 0.91 | — | 0.20 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | * | — | — | |||||||||||||||
| Net asset value, end of year | $ | 22.52 | 20.98 | 17.91 | 16.54 | 13.42 | ||||||||||||||||
| Total Return(1) | % | 19.10 | 26.71 | 14.25 | † | 23.25 | 34.08 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 757,941 | 729,067 | 663,626 | 675,039 | 628,704 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense waiver and brokerage commission recapture | % | 2.29 | 2.30 | 2.30 | 2.31 | 2.44 | ||||||||||||||||
| Net expenses after expense waiver and prior to brokerage commission recapture | % | 2.28 | 2.30 | 2.30 | 2.31 | 2.44 | ||||||||||||||||
| Net expenses after expense waiver and brokerage commission recapture | % | 2.28 | 2.30 | 2.30 | 2.31 | 2.44 | ||||||||||||||||
| Net investment income (loss) after expense waiver and brokerage commission recapture | % | 0.38 | 0.20 | 0.15 | 0.09 | (0.04 | ) | |||||||||||||||
| Portfolio turnover rate | % | 32 | 25 | 21 | 29 | 9 | ||||||||||||||||
| Class I | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 21.58 | 18.38 | 16.96 | 13.74 | 10.43 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.32 | * | 0.25 | 0.20 | 0.16 | 0.13 | |||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.74 | 4.60 | 2.31 | 3.20 | 3.48 | ||||||||||||||||
| Total from investment operations | $ | 4.06 | 4.85 | 2.51 | 3.36 | 3.61 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.28 | 0.24 | 0.29 | 0.14 | 0.10 | ||||||||||||||||
| Net realized gains on investments | $ | 2.14 | 1.41 | 0.80 | — | 0.20 | ||||||||||||||||
| Total distributions | $ | 2.42 | 1.65 | 1.09 | 0.14 | 0.30 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | * | — | — | |||||||||||||||
| Net asset value, end of year | $ | 23.22 | 21.58 | 18.38 | 16.96 | 13.74 | ||||||||||||||||
| Total Return(1) | % | 20.31 | 28.15 | 15.42 | † | 24.67 | 35.58 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 2,176,402 | 1,728,560 | 1,221,594 | 831,142 | 482,047 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to brokerage commission recapture | % | 1.23 | 1.22 | 1.23 | 1.21 | 1.29 | ||||||||||||||||
| Net expenses after brokerage commission recapture | % | 1.23 | 1.22 | 1.23 | 1.21 | 1.29 | ||||||||||||||||
| Net investment income after brokerage commission recapture | % | 1.45 | 1.26 | 1.18 | 1.18 | 1.12 | ||||||||||||||||
| Portfolio turnover rate | % | 32 | 25 | 21 | 29 | 9 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
* Amount is less than $0.005 or more than $(0.005).
† In 2005, there was no impact on total return due to payment by affiliate.
113
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class Q | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 21.57 | 18.37 | 16.94 | 13.73 | 10.44 | ||||||||||||||||
| Income from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.31 | * | 0.21 | * | 0.19 | 0.14 | 0.10 | ||||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 3.74 | 4.59 | 2.29 | 3.17 | 3.49 | ||||||||||||||||
| Total from investment operations | $ | 4.05 | 4.80 | 2.48 | 3.31 | 3.59 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.22 | 0.19 | 0.25 | 0.10 | 0.10 | ||||||||||||||||
| Net realized gains on investments | $ | 2.14 | 1.41 | 0.80 | — | 0.20 | ||||||||||||||||
| Total distributions | $ | 2.36 | 1.60 | 1.05 | 0.10 | 0.30 | ||||||||||||||||
| Payment by affiliate | $ | — | — | 0.00 | ** | — | — | |||||||||||||||
| Net asset value, end of year | $ | 23.26 | 21.57 | 18.37 | 16.94 | 13.73 | ||||||||||||||||
| Total Return(1) | % | 20.25 | 27.82 | 15.20 | † | 24.32 | 35.37 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 26,512 | 26,383 | 27,993 | 28,862 | 29,319 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense waiver and brokerage commission recapture | % | 1.48 | 1.47 | 1.48 | 1.46 | 1.54 | ||||||||||||||||
| Net expenses after expense waiver and prior to brokerage commission recapture | % | 1.27 | 1.47 | 1.48 | 1.46 | 1.54 | ||||||||||||||||
| Net expenses after expense waiver and brokerage commission recapture | % | 1.27 | 1.47 | 1.48 | 1.46 | 1.54 | ||||||||||||||||
| Net investment income after expense waiver brokerage commission recapture | % | 1.40 | 1.06 | 0.99 | 0.89 | 0.87 | ||||||||||||||||
| Portfolio turnover rate | % | 32 | 25 | 21 | 29 | 9 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
† In 2005, there was no impact on total return due to payment by affiliate.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
114
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | ||||||||||||||
| Year Ended | February 1, | |||||||||||||
| October 31, | 2005(1) to | |||||||||||||
| October 31, | ||||||||||||||
| 2007 | 2006 | 2005 | ||||||||||||
Per Share Operating Performance: | ||||||||||||||
| Net asset value, beginning of period | $ | 12.42 | 10.70 | 10.00 | ||||||||||
| Income from investment operations: | ||||||||||||||
| Net investment income | $ | 0.10 | * | 0.12 | * | 0.11 | * | |||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.65 | 1.86 | 0.59 | ||||||||||
| Total from investment operations | $ | 2.75 | 1.98 | 0.70 | ||||||||||
| Less distributions from: | ||||||||||||||
| Net investment income | $ | 0.07 | 0.10 | — | ||||||||||
| Net realized gains on investments | $ | 0.21 | 0.16 | — | ||||||||||
| Total distributions | $ | 0.28 | 0.26 | — | ||||||||||
| Net asset value, end of period | $ | 14.89 | 12.42 | 10.70 | ||||||||||
| Total Return(2) | % | 22.48 | 18.82 | 7.00 | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||
| Net assets, end of period (000’s) | $ | 16,598 | 17,962 | 6,115 | ||||||||||
| Ratios to average net assets: | ||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture (3) | % | 1.63 | 1.71 | 3.44 | ||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(3)(4) | % | 1.70 | 1.70 | 1.70 | ||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 1.70 | 1.69 | 1.70 | ||||||||||
| Net investment income after expense reimbursement/recoupment and brokerage commission recapture (3)(4) | % | 0.77 | 1.04 | 1.08 | ||||||||||
| Portfolio turnover rate | % | 88 | 31 | 24 | ||||||||||
| Class B | ||||||||||||||
| Year Ended | February 1, | |||||||||||||
| October 31, | 2005(1) to | |||||||||||||
| October 31, | ||||||||||||||
| 2007 | 2006 | 2005 | ||||||||||||
Per Share Operating Performance: | ||||||||||||||
| Net asset value, beginning of period | $ | 12.27 | 10.65 | 10.00 | ||||||||||
| Income from investment operations: | ||||||||||||||
| Net investment income | $ | 0.00 | * ** | 0.04 | * | 0.04 | * | |||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.61 | 1.82 | 0.61 | ||||||||||
| Total from investment operations | $ | 2.61 | 1.86 | 0.65 | ||||||||||
| Less distributions from: | ||||||||||||||
| Net investment income | $ | — | 0.08 | — | ||||||||||
| Net realized gains on investments | $ | 0.21 | 0.16 | — | ||||||||||
| Total distributions | $ | 0.21 | 0.24 | — | ||||||||||
| Net asset value, end of period | $ | 14.67 | 12.27 | 10.65 | ||||||||||
| Total Return(2) | % | 21.54 | 17.77 | 6.50 | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||
| Net assets, end of period (000’s) | $ | 3,805 | 3,565 | 1,427 | ||||||||||
| Ratios to average net assets: | ||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment and brokerage commission recapture (3) | % | 2.38 | 2.46 | 4.19 | ||||||||||
| Net expenses after expense reimbursement/recoupment and prior to brokerage commission recapture(3)(4) | % | 2.45 | 2.45 | 2.45 | ||||||||||
| Net expenses after expense reimbursement/recoupment and brokerage commission recapture(3)(4) | % | 2.45 | 2.44 | 2.45 | ||||||||||
| Net investment income after expense reimbursement/recoupment and brokerage commission recapture (3)(4) | % | 0.01 | 0.35 | 0.36 | ||||||||||
| Portfolio turnover rate | % | 88 | 31 | 24 | ||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005.
115
Table of Contents
Selected data for a share of beneficial interest outstanding throughout each period.
| Class C | ||||||||||||||
| Year Ended | February 4, | |||||||||||||
| October 31, | 2005(1) to | |||||||||||||
| October 31, | ||||||||||||||
| 2007 | 2006 | 2005 | ||||||||||||
Per Share Operating Performance: | ||||||||||||||
| Net asset value, beginning of period | $ | 12.29 | 10.66 | 10.01 | ||||||||||
| Income from investment operations: | ||||||||||||||
| Net investment income | $ | 0.00 | ** | 0.04 | * | 0.04 | * | |||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.62 | 1.83 | 0.61 | ||||||||||
| Total from investment operations | $ | 2.62 | 1.87 | 0.65 | ||||||||||
| Less distributions from: | ||||||||||||||
| Net investment income | $ | — | 0.08 | — | ||||||||||
| Net realized gains on investments | $ | 0.21 | 0.16 | — | ||||||||||
| Total distributions | $ | 0.21 | 0.24 | — | ||||||||||
| Net asset value, end of period | $ | 14.70 | 12.29 | 10.66 | ||||||||||
| Total Return(2) | % | 21.58 | 17.78 | 6.49 | ||||||||||
Ratios and Supplemental Data: | ||||||||||||||
| Net assets, end of period (000’s) | $ | 4,930 | 4,189 | 1,796 | ||||||||||
| Ratios to average net assets: | ||||||||||||||
| Gross expenses prior to expense reimbursement and brokerage commission recapture(3) | % | 2.38 | 2.46 | 4.19 | ||||||||||
| Net expenses after expense reimbursement and prior to brokerage commission recapture(3)(4) | % | 2.45 | 2.45 | 2.45 | ||||||||||
| Net expenses after expense reimbursement and brokerage commission recapture(3)(4) | % | 2.45 | 2.44 | 2.45 | ||||||||||
| Net investment income after expense reimbursement and brokerage commission recapture(3)(4) | % | 0.00 | ** | 0.33 | 0.35 | |||||||||
| Portfolio turnover rate | % | 88 | 31 | 24 | ||||||||||
| Class I | ||||||||||
| Year | December 21, | |||||||||
| Ended | 2005(1) to | |||||||||
| October 31, | October 31, | |||||||||
| 2007 | 2006 | |||||||||
Per Share Operating Performance: | ||||||||||
| Net asset value, beginning of period | $ | 12.42 | 11.04 | |||||||
| Income from investment operations: | ||||||||||
| Net investment income | $ | 0.17 | * | 0.16 | * | |||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 2.64 | 1.22 | |||||||
| Total from investment operations | $ | 2.81 | 1.38 | |||||||
| Less distributions from: | ||||||||||
| Net investment income | $ | 0.10 | — | |||||||
| Net realized gains on investments | $ | 0.21 | — | |||||||
| Total distributions | $ | 0.31 | — | |||||||
| Net asset value, end of period | $ | 14.92 | 12.42 | |||||||
| Total Return(2) | % | 23.04 | 12.50 | |||||||
Ratios and Supplemental Data: | ||||||||||
| Net assets, end of period (000’s) | $ | 60,413 | 36,899 | |||||||
| Ratios to average net assets: | ||||||||||
| Gross expenses prior to expense reimbursement and brokerage commission recapture(3) | % | 1.24 | 1.36 | |||||||
| Net expenses after expense reimbursement and prior to brokerage commission recapture(3)(4) | % | 1.31 | 1.35 | |||||||
| Net expenses after expense reimbursement and brokerage commission recapture(3)(4) | % | 1.31 | 1.34 | |||||||
| Net investment income after expense reimbursement and brokerage commission recapture(3)(4) | % | 1.29 | 1.56 | |||||||
| Portfolio turnover rate | % | 88 | 31 | |||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
** Amount is less than $0.005 or 0.005%.
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Selected data for a share of beneficial interest outstanding throughout the period.
| Class A | Class B | Class C | Class I | |||||||||||||||
| February 28, | February 28, | February 28, | February 28, | |||||||||||||||
| 2007(1) to | 2007(1) to | 2007(1) to | 2007(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 10.00 | 10.00 | 10.00 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.17 | 0.02 | * | 0.01 | * | 0.20 | |||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 0.47 | 0.57 | 0.55 | 0.47 | |||||||||||||
| Total from investment operations | $ | 0.64 | 0.59 | 0.56 | 0.67 | |||||||||||||
| Net asset value, end of period | $ | 10.64 | 10.59 | 10.56 | 10.67 | |||||||||||||
| Total Return(2) | % | 6.40 | 5.90 | 5.60 | 6.70 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 10,671 | 2 | 28 | 1 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement(3) | % | 2.80 | 3.55 | 3.55 | 2.55 | |||||||||||||
| Net expenses after expense reimbursement(3)(4) | % | 1.40 | 2.15 | 2.15 | 1.15 | |||||||||||||
| Net investment income after expense reimbursement (3)(4) | % | 2.52 | 0.33 | 0.19 | 2.94 | |||||||||||||
| Portfolio turnover rate | % | 41 | 41 | 41 | 41 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
* Calculated using average number of shares outstanding throughout the period.
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Table of Contents
Selected data for a share of beneficial interest outstanding throughout each year.
| Class A | ||||||||||||||||||||||
| Year Ended October 31, | ||||||||||||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of year | $ | 55.81 | 33.49 | 25.01 | 19.13 | 12.15 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income (loss) | $ | (0.33 | )** | (0.27 | ) | (0.00 | )* | 0.04 | (0.00 | )* | ||||||||||||
| Net realized and unrealized gain on investments and foreign currency related transactions | $ | 25.77 | 22.37 | 8.39 | 5.69 | 7.06 | ||||||||||||||||
| Total from investment operations | $ | 25.44 | 22.10 | 8.39 | 5.73 | 7.06 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | — | — | 0.01 | 0.02 | 0.12 | ||||||||||||||||
| Net realized gains on investments | $ | 3.12 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 3.12 | — | 0.01 | 0.02 | 0.12 | ||||||||||||||||
| Redemption fees applied to capital | $ | — | 0.22 | 0.10 | 0.17 | 0.04 | ||||||||||||||||
| Net asset value, end of year | $ | 78.13 | 55.81 | 33.49 | 25.01 | 19.13 | ||||||||||||||||
| Total Return(1) | % | 47.16 | 66.65 | 33.98 | 30.88 | 58.98 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of year (000’s) | $ | 922,504 | 751,947 | 271,603 | 212,180 | 161,601 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Expenses | % | 1.96 | 1.98 | 2.13 | 2.01 | 2.09 | ||||||||||||||||
| Net investment income (loss) | % | (0.52 | ) | (0.64 | ) | (0.01 | ) | 0.15 | (0.02 | ) | ||||||||||||
| Portfolio turnover rate | % | 12 | 20 | 26 | 54 | 23 | ||||||||||||||||
(1) Total return is calculated assuming reinvestment of all dividends and capital gain distributions at net asset value and excluding the deduction of sales charges.
* Amount is more than $(0.005).
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Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| Year | December 21, | Year | January 4, | |||||||||||||||
| Ended | 2005(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 10.33 | 10.00 | 10.30 | 10.15 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.66 | * | 0.64 | * | 0.54 | * | 0.59 | * | |||||||||
| Net realized and unrealized gain on investments, foreign currency related transactions, and futures | $ | 0.06 | 0.26 | 0.10 | 0.09 | |||||||||||||
| Total from investment operations | $ | 0.72 | 0.90 | 0.64 | 0.68 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.63 | 0.57 | 0.55 | 0.53 | |||||||||||||
| Net realized gains on investments | $ | 0.03 | — | 0.03 | — | |||||||||||||
| Total distributions | $ | 0.66 | 0.57 | 0.58 | 0.53 | |||||||||||||
| Net asset value, end of period | $ | 10.39 | 10.33 | 10.36 | 10.30 | |||||||||||||
| Total Return(2) | % | 7.18 | 9.28 | 6.40 | 6.92 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 10,539 | 26,121 | 404 | 293 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment(4) | % | 1.12 | 2.41 | 1.87 | 3.16 | |||||||||||||
| Net expenses after expense reimbursement/recoupment (3)(4) | % | 1.20 | 1.25 | 1.95 | 2.00 | |||||||||||||
| Net investment income after expense reimbursement/recoupment(3)(4) | % | 6.39 | 7.36 | 5.22 | 6.91 | |||||||||||||
| Portfolio turnover rate | % | 29 | 56 | 29 | 56 | |||||||||||||
| Class C | Class I | |||||||||||||||||||||
| Year | March 1, | December 20, | May 1, | February 7, | ||||||||||||||||||
| Ended | 2006(1) to | 2006(1) to | 2006 to | 2006(1) to | ||||||||||||||||||
| October 31, | October 31, | October 31, | August 24, | April 30, | ||||||||||||||||||
| 2007 | 2006 | 2007 | 2006(5) | 2006 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.29 | 10.43 | 10.48 | 10.18 | 10.24 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||||||
| Net investment income | $ | 0.53 | 0.61 | * | 0.54 | 0.26 | * | 0.28 | * | |||||||||||||
| Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and futures | $ | 0.11 | (0.34 | ) | (0.11 | ) | (0.28 | ) | (0.19 | ) | ||||||||||||
| Total from investment operations | $ | 0.64 | 0.27 | 0.43 | (0.02 | ) | 0.09 | |||||||||||||||
| Less distributions from: | ||||||||||||||||||||||
| Net investment income | $ | 0.55 | 0.41 | 0.55 | 0.06 | 0.15 | ||||||||||||||||
| Net realized gains on investments | $ | 0.03 | — | — | — | — | ||||||||||||||||
| Total distributions | $ | 0.58 | 0.41 | 0.55 | 0.06 | 0.15 | ||||||||||||||||
| Net asset value, end of period | $ | 10.35 | 10.29 | 10.36 | 10.10 | 10.18 | ||||||||||||||||
| Total Return(2) | % | 6.41 | 2.75 | 4.25 | (0.15 | ) | 0.91 | |||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||
| Net assets, end of period (000’s) | $ | 1,564 | 344 | 303,156 | 13 | 13 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||||||
| Gross expenses prior to expense reimbursement/recoupment(4) | % | 1.87 | 3.16 | 0.84 | 2.33 | 2.65 | ||||||||||||||||
| Net expenses after expense reimbursement/recoupment(3)(4) | % | 1.95 | 2.00 | 0.92 | 1.06 | 1.00 | ||||||||||||||||
| Net investment income after expense reimbursement/recoupment(3)(4) | % | 4.87 | 7.09 | 5.36 | 8.32 | 7.79 | ||||||||||||||||
| Portfolio turnover rate | % | 29 | 56 | 29 | 29 | 26 | ||||||||||||||||
(1) Commencement of operations.
| * | Calculated using average number of shares outstanding throughout the period. |
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Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| Year | June 30, | Year | June 30, | |||||||||||||||
| Ended | 2006(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 10.25 | 10.00 | 10.24 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.31 | * | 0.08 | * | 0.25 | * | 0.06 | * | |||||||||
| Net realized and unrealized gain on investments, foreign currency related transactions, and futures | $ | 0.64 | 0.23 | 0.62 | 0.22 | |||||||||||||
| Total from investment operations | $ | 0.95 | 0.31 | 0.87 | 0.28 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.43 | 0.06 | 0.38 | 0.04 | |||||||||||||
| Net realized gains on investments | $ | 0.18 | — | 0.18 | — | |||||||||||||
| Total distributions | $ | 0.61 | 0.06 | 0.56 | 0.04 | |||||||||||||
| Net asset value, end of period | $ | 10.59 | 10.25 | 10.55 | 10.24 | |||||||||||||
| Total Return(2) | % | 9.61 | 3.13 | 8.74 | 2.84 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 28,887 | 25,784 | 342 | 28 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement(3) | % | 1.46 | 1.38 | 2.21 | 2.13 | |||||||||||||
| Net expenses after expense reimbursement(3)(4) | % | 0.90 | † | 0.90 | 1.65 | † | 1.65 | |||||||||||
| Net investment income after expense reimbursement (3)(4) | % | 3.08 | 2.41 | 2.44 | 2.00 | |||||||||||||
| Portfolio turnover rate | % | 858 | 451 | 858 | 451 | |||||||||||||
| Class C | Class I | |||||||||||||||||
| Year | June 30, | Year | June 30, | |||||||||||||||
| Ended | 2006(1) to | Ended | 2006(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 10.24 | 10.00 | 10.25 | 10.00 | |||||||||||||
| Income from investment operations: | ||||||||||||||||||
| Net investment income | $ | 0.24 | * | 0.06 | * | 0.35 | * | 0.09 | * | |||||||||
| Net realized and unrealized gain on investments, foreign currency related transactions, and futures | $ | 0.64 | 0.22 | 0.63 | 0.23 | |||||||||||||
| Total from investment operations | $ | 0.88 | 0.28 | 0.98 | 0.32 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.35 | 0.04 | 0.47 | 0.07 | |||||||||||||
| Net realized gains on investments | $ | 0.18 | — | 0.18 | — | |||||||||||||
| Total distributions | $ | 0.53 | 0.04 | 0.65 | 0.07 | |||||||||||||
| Net asset value, end of period | $ | 10.59 | 10.24 | 10.58 | 10.25 | |||||||||||||
| Total Return(2) | % | 8.90 | 2.82 | 9.88 | 3.23 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 1,627 | 36 | 1 | 1 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement(3) | % | 2.21 | 2.13 | 1.00 | 1.03 | |||||||||||||
| Net expenses after expense reimbursement(3)(4) | % | 1.65 | † | 1.65 | 0.61 | † | 0.55 | |||||||||||
| Net investment income after expense reimbursement (3)(4) | % | 2.33 | 1.68 | 3.47 | 2.68 | |||||||||||||
| Portfolio turnover rate | % | 858 | 451 | 858 | 451 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
| * | Calculated using average number of shares outstanding throughout the period. |
† Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.01% impact on the expense ratio.
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Selected data for a share of beneficial interest outstanding throughout each period.
| Class A | Class B | |||||||||||||||||
| Year | December 21, | Year | December 21, | |||||||||||||||
| Ended | 2005(1) to | Ended | 2005(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.61 | 10.00 | 11.54 | 10.00 | |||||||||||||
| Income (loss) from investment operations: | �� | |||||||||||||||||
| Net investment income (loss) | $ | 0.05 | * | (0.03 | )* | (0.04 | ) | (0.10 | )* | |||||||||
| Net realized and unrealized gain on investments in affiliates | $ | 3.38 | 1.64 | 3.35 | 1.64 | |||||||||||||
| Total from investment operations | $ | 3.43 | 1.61 | 3.31 | 1.54 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.06 | — | 0.01 | — | |||||||||||||
| Total distributions | $ | 0.06 | — | 0.01 | — | |||||||||||||
| Net asset value, end of period | $ | 14.98 | 11.61 | 14.84 | 11.54 | |||||||||||||
| Total Return(2) | % | 29.66 | 16.10 | 28.68 | 15.40 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 383,364 | 170,108 | 43,667 | 23,035 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement (4)(5) | % | 0.55 | 0.66 | 1.30 | 1.41 | |||||||||||||
| Net expenses after expense reimbursement(3)(4)(5) | % | 0.21 | 0.35 | 0.96 | 1.10 | |||||||||||||
| Net investment income (loss) after expense reimbursement(3)(4)(5) | % | 0.37 | (0.35 | ) | (0.34 | ) | (1.10 | ) | ||||||||||
| Portfolio turnover rate | % | 32 | 30 | 32 | 30 | |||||||||||||
| Class C | Class I | |||||||||||||||||
| Year | December 21, | Year | December 21, | |||||||||||||||
| Ended | 2005(1) to | Ended | 2005(1) to | |||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 11.54 | 10.00 | 11.63 | 10.00 | |||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||
| Net investment income (loss) | $ | (0.05 | )* | (0.10 | )* | 0.03 | * | (0.01 | )* | |||||||||
| Net realized and unrealized gain on investments in affiliates | $ | 3.35 | 1.64 | 3.41 | 1.64 | |||||||||||||
| Total from investment operations | $ | 3.30 | 1.54 | 3.44 | 1.63 | |||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.01 | — | 0.08 | — | |||||||||||||
| Total distributions | $ | 0.01 | — | 0.08 | — | |||||||||||||
| Net asset value, end of period | $ | 14.83 | 11.54 | 14.99 | 11.63 | |||||||||||||
| Total Return(2) | % | 28.63 | 15.40 | 29.69 | 16.30 | |||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 168,661 | 69,825 | 32 | 4 | |||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement (4)(5) | % | 1.30 | 1.41 | 0.30 | 0.45 | |||||||||||||
| Net expenses after expense reimbursement(3)(4)(5) | % | 0.96 | 1.10 | 0.09 | 0.10 | |||||||||||||
| Net investment income (loss) after expense reimbursement(3)(4)(5) | % | (0.39 | ) | (1.10 | ) | 0.21 | (0.13 | ) | ||||||||||
| Portfolio turnover rate | % | 32 | 30 | 32 | 30 | |||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charge. Total return for less than one year is not annualized.
(3) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
(4) Annualized for periods less than one year.
(5) Expense ratios do not include expenses of Underlying Funds.
| * | Calculated using average number of shares outstanding throughout the period. |
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Selected data for a share of beneficial interest outstanding throughout the period.
| Class R | ||||||||||||||||||
| December 12, | ||||||||||||||||||
| 2006(1) to | ||||||||||||||||||
| October 31, | ||||||||||||||||||
| 2007 | ||||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||
| Net asset value, beginning of period | $ | 12.19 | ||||||||||||||||
| Income (loss) from investment operations: | ||||||||||||||||||
| Net investment loss | $ | (0.05 | )* | |||||||||||||||
| Net realized and unrealized gain on investments in affiliates | $ | 2.76 | ||||||||||||||||
| Total from investment operations | $ | 2.71 | ||||||||||||||||
| Less distributions from: | ||||||||||||||||||
| Net investment income | $ | 0.08 | ||||||||||||||||
| Total distributions | $ | 0.08 | ||||||||||||||||
| Net asset value, end of period | $ | 14.82 | ||||||||||||||||
| Total Return(2) | % | 22.33 | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||
| Net assets, end of period (000’s) | $ | 432 | ||||||||||||||||
| Ratios to average net assets: | ||||||||||||||||||
| Gross expenses prior to expense reimbursement (3)(5) | % | 0.80 | ||||||||||||||||
| Net expenses after expense reimbursement (3)(4)(5) | % | 0.46 | ||||||||||||||||
| Net investment loss after expense reimbursement (3)(4)(5) | % | (0.36 | ) | |||||||||||||||
| Portfolio turnover rate | % | 32 | ||||||||||||||||
(1) Commencement of operations.
(2) Total return is calculated assuming reinvestment of dividends and capital gain distributions at net asset value and excluding the deduction of sales charges. Total return for less than one year is not annualized.
(3) Annualized for periods less than one year.
(4) The Investment Adviser has agreed to limit expenses, (excluding interest, taxes, brokerage and extraordinary expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.
(5) Expense ratios do not include expenses of Underlying Funds.
* Calculated using average number of shares outstanding throughout the period.
122
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NOTE 1 — ORGANIZATION
Organization. The ING Funds included in this report are comprised of ING Mutual Funds (“IMF”) and ING Mayflower Trust (“IMT”) (each a “Registrant” and collectively, the “Registrants”); both are organized as open-end investment management companies registered under the Investment Company Act of 1940, as amended (“1940 Act”).
IMF is a Delaware statutory trust organized December 18, 1992 with twenty 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 Disciplined International SmallCap Fund (“Disciplined International SmallCap”), ING Emerging Countries Fund (“Emerging Countries”), ING Foreign Fund (“Foreign”), ING Greater China Fund (“Greater China”), ING Index Plus International Equity Fund (“Index Plus International Equity”), ING International Capital Appreciation Fund (“International Capital Appreciation”), ING International Equity Dividend Fund (“International Equity Dividend”), ING International Growth Opportunities Fund (“International Growth Opportunities”) (formerly, ING International Fund), ING International Real Estate Fund (“International Real Estate”), ING International SmallCap Fund (“International SmallCap”), ING International Value Choice Fund (“International Value Choice”), ING International Value Opportunities Fund (“International Value Opportunities”), ING Russia Fund (“Russia”), ING Emerging Markets Fixed Income Fund (“Emerging Markets Fixed Income”), ING Global Bond Fund (“Global Bond”) and ING Diversified International Fund (“Diversified International”). IMT is a Massachusetts business trust organized August 18, 1993 with one series, ING International Value Fund (“International Value”) (a “Fund” and together with the IMF Funds, the “Funds”). The investment objective of each Fund is described in the Funds’ prospectus.
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 and Class R. The separate classes of shares differ principally in the applicable sales charges (if any), distribution fees and shareholder servicing fees and transfer agent fees. Generally, shareholders of each class also bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the Fund and earn income and realized gains/losses from the portfolio pro rata based on the average daily net assets of each class, without distinction between share classes. Common expenses of the Funds (including custodial asset-based fees, legal and audit fees, printing and mailing expenses, transfer agency out-of-pocket expenses, and fees and expenses of the independent trustees) are allocated to each Fund in proportion to its relative daily net assets. Expenses directly attributable to a particular fund (including advisory, administration, custodial transaction-based, registration, other professional, distribution and/or service fees, certain taxes, and offering costs) are charged directly to that Fund. Differences in per share dividend rates generally result from the differences in separate class expenses, including distribution and shareholder servicing fees. Class B shares, along with their pro rata reinvested dividend shares, automatically convert to Class A shares eight years after purchase.
International Value is closed to new investments except for shares purchased (1) through the reinvestment of dividends and distributions; (2) by 401(k), 403(b) and 457 plans that have selected International Value as an investment option prior to June 28, 2002; (3) by shareholders participating in mutual fund wrap fee programs who were invested in International Value prior to June 28, 2002; (4) by new 401(k), 403(b) and 457 plans and new shareholders participating in mutual fund wrap fee programs subject to approval by the Investment Adviser and Sub-Adviser based on their assessment of the Fund’s ability to invest the monies consistent with the Fund’s objectives in light of market conditions, the size of the purchase, and other relevant factors relating to International Value; (5) by certain institutional and separately managed account investors that are pre-existing clients of the Sub-Adviser; and (6) by employees of the Investment Adviser or Sub-Adviser and their affiliates. Proof of eligibility may be required. Institutional and separately managed account investors that are pre-existing clients of the Sub-Adviser and employees of the Investment Adviser or Sub-Adviser and their affiliates must identify themselves as such at the time of purchase. Failure to do so may result in a rejection of the purchase. The Fund may reopen in the future subject to the discretion of the Board of Trustees of IMT.
Effective January 2, 2007, Class M shareholders of Emerging Countries were converted to Class A shares
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of Emerging Countries. In addition, Emerging Countries does not impose any front-end sales charge (load) on purchases of Class A shares of Emerging Countries by its former Class M shareholders for the life of their account.
Diversified International seeks to achieve its investment objective by investing in other ING Funds (“Underlying Funds”) and uses asset allocation strategies to determine how much to invest in the Underlying Funds.
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by the Funds in the preparation of their financial statements, and such policies are in conformity with U.S. generally accepted accounting principles for investment companies.
| A. | Security Valuation. For all Funds except Russia and Diversified International, investments in equity securities traded on a national securities exchange are valued at the last reported sale price. Securities reported by NASDAQ will be valued at the NASDAQ official closing prices. Securities traded on an exchange or NASDAQ for which there has been no sale, securities traded in the over-the-counter-market, gold and silver bullion, platinum and palladium are valued at the mean between the last reported bid and ask prices. All investments quoted in foreign currencies will be valued daily in U.S. dollars on the basis of the foreign currency exchange rates prevailing at that time. Debt securities are valued at prices obtained from independent services or from one or more dealers making markets in the securities and may be adjusted based on the Funds’ valuation procedures. U.S. government obligations are valued by using market quotations or independent pricing services that use prices provided by market-makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. |
| Securities and assets for which market quotations are not readily available (which may include certain restricted securities which are subject to limitations as to their sale) are valued at their fair values as determined in good faith by or under the supervision of the Funds’ Board in accordance with methods that are specifically authorized by the Board. Securities traded on exchanges, including foreign exchanges, which close earlier than the time that a Fund calculates its next net asset value (“NAV”) may also be valued at their fair values as determined in good faith by or under the supervision of a Funds’ Board, in accordance with methods that are specifically authorized by the Board. The valuation techniques applied in any specific instance are likely to vary from case to case. With respect to a restricted security, for example, consideration is generally given to the cost of the investment, the market value of any unrestricted securities of the same class at the time of valuation, the potential expiration of restrictions on the security, the existence of any registration rights, the costs to a Fund related to registration of the security, as well as factors relevant to the issuer itself. Consideration may also be given to the price and extent of any public trading in similar securities of the issuer or comparable companies’ securities. | |
| The value of a foreign security traded on an exchange outside the United States is generally based on its price on the principal foreign exchange where it trades as of the time a Fund determines its NAV or if the foreign exchange closes prior to the time the Fund determines its NAV, the most recent closing price of the foreign security on its principal exchange. Trading in certain non-U.S. securities may not take place on all days on which the New York Stock Exchange (“NYSE”) is open. Further, trading takes place in various foreign markets on days on which the NYSE is not open. Consequently, the calculation of a Fund’s NAV may not take place contemporaneously with the determination of the prices of securities held by a Fund in foreign securities markets. Further, the value of a Fund’s assets may be significantly affected by foreign trading on days when a shareholder cannot purchase or redeem shares of the Fund. In calculating a Fund’s NAV, foreign securities in foreign currency are converted to U.S. dollar equivalents. | |
| If an event occurs after the time at which the market for foreign securities held by a Fund 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 |
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| its NAV. In such a case, a Fund will use the fair value of such securities as determined under the Funds’ valuation procedures. Events after the close of trading on a foreign market that could require a Fund to fair value some or all of its foreign securities include, among others, securities trading in the U.S. and other markets, corporate announcements, natural and other disasters, and political and other events. Among other elements of analysis in the determination of a security’s fair value, the Board has authorized the use of one or more independent research services to assist with such determinations. An independent research service may use statistical analyses and quantitative models to help determine fair value as of the time a Fund calculates its NAV. There can be no assurance that such models accurately reflect the behavior of the applicable markets or the effect of the behavior of such markets on the fair value of securities, or that such markets will continue to behave in a fashion that is consistent with such models. Unlike the closing price of a security on an exchange, fair value determinations employ elements of judgment. Consequently, the fair value assigned to a security may not represent the actual value that a Fund could obtain if it were to sell the security at the time of the close of the NYSE. Pursuant to procedures adopted by the Board, a Fund is not obligated to use the fair valuations suggested by any research service, and valuation recommendations provided by such research services may be overridden if other events have occurred or if other fair valuations are determined in good faith to be more accurate. Unless an event is such that it causes a Fund to determine that the closing prices for one or more securities do not represent readily available reliable market value quotations at the time the Fund determines its NAV, events that occur between the time of the close of the foreign market on which they are traded and the close of regular trading on the NYSE will not be reflected in the Fund’s NAV. Investments in securities maturing in 60 days or less are valued at amortized cost, which, when combined with accrued interest approximates market value. | |
| For the Russia Fund, the valuation procedures for Russian equity securities are to price local shares according to the most recent available bid prices. If securities are not listed on the Russian Trade System 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 (the “RTS”) 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, the valuation of the Fund’s investments in its Underlying Funds is based on the NAVs of the Underlying Funds each business day. In general, assets of the Underlying Funds are valued based on actual or estimated market value, with special provisions for assets not having readily available market quotations and short-term debt securities, and for situations where market quotations are deemed unreliable. Investments in securities maturing in 60 days or less are valued at amortized cost, which when combined with accrued interest, approximates market value. Securities prices may be obtained from automated pricing services. Shares of investment companies held by the Underlying Funds will generally be valued at the latest NAV reported by that investment company. | |
| B. | Security Transactions and Revenue Recognition. Securities transactions are accounted for on the trade date. Realized gains and losses are reported on the basis of identified cost of securities sold. Interest income is recorded on an accrual basis. Dividend income is recorded, net of any applicable withholding tax, on the ex-dividend date, or for certain foreign securities, when the information becomes available to the Funds. Premium amortization and discount accretion are determined by the effective yield method. |
| For Diversified International, capital gain dividends from Underlying Funds are recorded as distributions of realized gains from affiliated Underlying Funds. |
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| Global Real Estate and International Real Estate estimate components of distributions from real estate investment trusts (“REITs”). Distributions received in excess of income are recorded as a reduction of cost of the related investments. If the Funds no longer own the applicable securities, any distributions received in excess of income are recorded as realized gains. | |
| C. | Foreign Currency Translation. The books and records of the Funds and Underlying Funds are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis: |
| (1) | Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at the end of the day. | |
| (2) | Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions. |
| Although the net assets and the market values are presented at the foreign exchange rates at the end of the day, the Funds and Underlying Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. For securities that are subject to foreign withholding tax upon disposition, liabilities are recorded on the Statements of Assets and Liabilities for the estimated tax withholding based on the securities’ current market value. Upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax. | |
| Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on a Fund’s or an Underlying Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to revaluation of currencies and future adverse political and economic developments which could cause securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities. The foregoing risks are even greater with respect to securities of issuers in emerging markets. | |
| D. | Foreign Currency Transactions and Futures Contracts. Each Fund and Underlying Fund may enter into foreign currency exchange transactions to convert to and from different foreign currencies and to and from the U.S. dollar, generally in connection with the planned purchases or sales of securities. The Funds and Underlying Funds either enter into these transactions on a spot basis at the spot rate prevailing in the foreign currency exchange market or may use forward foreign currency contracts to purchase or sell foreign currencies. When the contract is fulfilled or closed, gains or losses are realized. Until then, the gain or loss is included in unrealized appreciation or depreciation. Risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their forward contracts and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar. |
| Each Fund and Underlying Fund may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. Each Fund and Underlying Fund intends to limit its use of futures contracts and futures options to “bona fide hedging” transactions, as such term is defined in applicable regulations, interpretations and practice. A futures contract obligates the seller of the contract to deliver and the purchaser of the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time for a specified price. Upon entering into |
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| 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. | |
| E. | Distributions to Shareholders. The Funds record distributions to their shareholders on ex-dividend date. Each Fund pays dividends and capital gains, if any, annually (except, Global Equity Dividend, Global Real Estate and International Real Estate, which pay dividends, if any, quarterly and Emerging Markets Fixed Income and Global Bond, which pay dividends monthly). The Funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. The characteristics of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies. |
| F. | Federal Income Taxes. It is the policy of the Funds to comply with subchapter M of the Internal Revenue Code and related excise tax provisions applicable to regulated investment companies and to distribute substantially all of their net investment income and any net realized capital gains to their shareholders. Therefore, no federal income tax provision is required. No capital gain distributions shall be made until any capital loss carryforwards have been fully utilized or expire. |
| The Funds may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain. | |
| G. | Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. |
| H. | Organization Expenses and Offering Costs. Costs incurred with the organization of the Funds and Underlying Funds are expensed as incurred. Costs incurred with the offering of shares of the Funds and Underlying Funds are deferred and amortized over a twelve-month period on a straight-line basis. |
| I. | Repurchase Agreements. Each Fund and Underlying Fund may invest in repurchase agreements only with government securities dealers recognized by the Board of Governors of the Federal Reserve System. Under such agreements, the seller of the security agrees to repurchase it at a mutually agreed upon time and price. The resale price is in excess of the purchase price and reflects an agreed upon interest rate for the period of time the agreement is outstanding. The period of the repurchase agreements is usually short, from overnight to one week, while the underlying securities generally have longer maturities. Each Fund and Underlying Fund will receive as collateral securities acceptable to it whose market value is equal to at least 100% of the carrying amount of the repurchase agreements, plus accrued interest, being invested by the Fund or Underlying Fund. The underlying collateral is valued daily on a mark to market basis to assure that the value, including accrued interest is at least equal to the repurchase price. There would be potential loss to the Fund or Underlying Fund in the event the Fund or Underlying Fund is delayed or prevented from exercising its right to dispose of the collateral, and it might incur disposition costs in liquidating the collateral. |
| J. | Securities Lending. Each Fund and Underlying Fund has the option to temporarily loan up to 30% of its total assets to brokers, dealers or other financial institutions in exchange for a negotiated lender’s fee. The borrower is required to fully collateralize the loans with cash or U.S. government securities. Generally, in the event of counterparty default, each Fund and |
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| Underlying Fund has the right to use collateral to offset losses incurred. There would be potential loss to a Fund or Underlying Fund in the event the Fund or Underlying Fund is delayed or prevented from exercising its right to dispose of the collateral. Each Fund and Underlying Fund bears the risk of loss with respect to the investment of collateral. Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other risks associated with investing in a Fund or Underlying Fund. | |
| K. | Options Contracts. All Funds and Underlying Funds may purchase put and call options and may write (sell) put options and covered call options. The Funds and Underlying Funds may engage in option transactions as a hedge against adverse movements in the value of portfolio holdings or to increase market exposure. Option contracts are valued daily and unrealized gains or losses are recorded based upon the last sales price on the principal exchange on which the options are traded. The Funds and Underlying Funds will realize a gain or loss upon the expiration or closing of the option contract. When an option is exercised, the proceeds on sales of the underlying security for a written call option, the purchase cost of the security for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid. Realized and unrealized gains or losses on option contracts are reflected in the accompanying financial statements. The value of an option purchased or written is marked to market daily and is valued at the closing price on the exchange on which it is traded or, if not traded on an exchange or no closing price is available, at the mean between last bid and asked prices. The risk in writing a covered call option is that the Funds and Underlying Funds give up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Funds and Underlying Funds may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Funds and Underlying Funds pay a premium whether or not the option is exercised. Risks may also arise from an illiquid secondary market or from the inability of counterparties to meet the terms of the contract. |
| L. | Swap Contracts. Certain Funds and Underlying Funds may enter into interest rate swaps, currency swaps and other types of swap agreements, including swaps on securities and indices. A swap is an agreement between two parties pursuant to which each party agrees to make one or more payments to the other on regularly scheduled dates over a stated term, based on different interest rates, currency exchange rates, security prices, the prices or rates of other types of financial instruments or assets or the levels of specified indices. During the term of the swap, changes in the value of the swap are recognized as unrealized appreciation or depreciation. |
| M. | Illiquid and Restricted Securities. Each Fund and Underlying Fund may not invest more than 15% of its net assets in illiquid securities. Illiquid securities are not readily marketable. Disposing of illiquid investments may involve time-consuming negotiation and legal expenses, and it may be difficult or impossible for the Funds and Underlying Funds to sell them promptly at an acceptable price. Each Fund and Underlying Fund may also invest in restricted securities which include those sold under Rule 144A of the Securities Act of 1933 (“1933 Act”) or securities offered pursuant to Section 4(2) of the 1933 Act, and/or are subject to legal or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Certain restricted securities may be considered liquid pursuant to procedures adopted by the Board or may be deemed illiquid because they may not be readily marketable. Illiquid and restricted securities are valued using market quotations when readily available. In the absence of market quotations, the securities are valued based upon their fair value determined under procedures approved by the Board. |
| N. | Delayed Delivery or When-Issued Transaction. The Funds and Underlying Funds may purchase or sell securities on a when-issued or forward commitment basis. The price of the securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The market value of these securities is identified in each Fund’s Portfolio of Investments. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of |
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| the contract. In connection with such purchases, the Funds and Underlying Funds are required to segregate liquid assets sufficient to cover the purchase price. |
NOTE 3 — INVESTMENT TRANSACTIONS
For the year ended October 31, 2007, 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 | $ | 241,467,877 | $ | 114,440,427 | ||||
| Global Natural Resources | 159,676,137 | 171,322,857 | ||||||
| Global Real Estate | 1,489,340,613 | 646,091,082 | ||||||
| Global Value Choice | 74,624,278 | 77,005,912 | ||||||
| Disciplined International Smallcap | 689,733,535 | 251,337,937 | ||||||
| Emerging Countries | 176,582,749 | 133,419,868 | ||||||
| Foreign | 507,242,216 | 398,908,799 | ||||||
| Greater China | 81,759,098 | 55,078,355 | ||||||
| Index Plus International Equity | 224,951,836 | 216,089,904 | ||||||
| International Capital Appreciation | 132,465,450 | 66,084,240 | ||||||
| International Equity Dividend | 55,022,140 | 2,147,755 | ||||||
| International Growth Opportunities | 170,982,964 | 194,501,074 | ||||||
| International Real Estate | 508,481,765 | 131,572,656 | ||||||
| International SmallCap | 1,141,804,741 | 803,123,226 | ||||||
| International Value | 1,622,001,727 | 1,980,705,496 | ||||||
| International Value Choice | 79,632,796 | 72,343,511 | ||||||
| International Value Opportunities | 14,012,871 | 4,049,343 | ||||||
| Russia | 99,050,016 | 232,167,757 | ||||||
| Emerging Markets Fixed Income | 294,624,980 | 34,407,546 | ||||||
| Global Bond | 48,801,306 | 44,469,415 | ||||||
| Diversified International | 359,307,578 | 130,727,717 | ||||||
Purchases and sales of long-term U.S. government securities not included above were as follows:
| Purchases | Sales | |||||||
| Global Bond | $ | 175,951,918 | $ | 173,701,447 | ||||
NOTE 4 — REDEMPTION FEES
A 2% redemption fee is charged on shares of Russia that are redeemed (included in connection with an exchange) within 365 days or less from their date of purchase. The redemption fee is recorded as an addition to paid-in capital. Total redemption fee proceeds for the year ended October 31, 2007 and year ended October 31, 2006 were $3,086,432 and $2,984,157, respectively, and are set forth in the Statements of Changes in Net Assets.
Up through April 2, 2006, International Growth Opportunities imposed a 2% redemption fee on Class A shares redeemed (including in connection with an exchange) within 30 days or less from their date of purchase. The redemption fee is recorded as an addition to paid-in capital. Total redemption fee proceeds through April 2, 2006 were $257 and are set forth in the Statements of Changes in Net Assets. Effective April 3, 2006, International Growth Opportunities no longer charges a redemption fee.
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
Each of the Funds has entered into an investment management agreement (“Management Agreements”) with ING Investments, LLC (“ING Investments” or “Investment Adviser”). The Management Agreements compensate the Investment Adviser with a fee, computed daily and payable monthly, based on the average daily net assets of each Fund, at the following annual rates:
| As a Percentage of Average Net Assets | ||
| Global Equity Dividend | 0.70% | |
| Global Natural Resources | 1.00% on first $50 million; and 0.75% thereafter | |
| Global Real Estate | 0.80% on the first $250 million; 0.775% on the next $250 million; and 0.70% thereafter | |
| Global Value Choice | 1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% on the next $500 million; and 0.75% thereafter | |
| Disciplined International SmallCap | 0.60% | |
| Emerging Countries | 1.25% | |
| 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 Equity Dividend | 0.75% | |
| International Growth Opportunities | 1.00% | |
| International Real Estate | 1.00% on the first $250 million; 0.90% on the next $250 million; and 0.80% thereafter | |
| International SmallCap | 1.00% on first $500 million; 0.90% on next $500 million; and 0.85% thereafter | |
| International Value | 1.00% | |
| International Value Choice | 1.00% | |
| International Value Opportunities | 0.80% on first $1 billion; and 0.75% thereafter | |
| Russia | 1.25% | |
| Emerging Markets Fixed Income | 0.65% on the first $250 million; 0.60% on the next $250 million; and 0.55% thereafter |
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| As a Percentage of Average Net Assets | ||
| Global Bond | 0.40% | |
| Diversified International | 0.00% |
| (1) | Effective July 31, 2007, ING Investments has contractually agreed to waive a portion of the advisory fee for ING Foreign Fund. This advisory fee waiver will continue through at least May 1, 2009. There is no guarantee that this waiver will continue after this date. This agreement will only renew if ING Investments elects to renew it. |
ING Investments has contractually agreed to waive a portion of the advisory fee for Foreign. The waiver is calculated as 50% of the difference between the former sub-advisory fee minus the new sub-advisory fee.
For the period ended October 31, 2007, ING Investments waived $4,906 for Foreign.
ING Investment Management Advisors B.V. (“IIMA”), a registered investment adviser, serves as the Sub-Adviser to Global Equity Dividend, Index Plus International Equity, International Equity Dividend, International Value Opportunities, Russia and Emerging Markets Fixed Income pursuant to a sub-advisory agreement between the Investment Adviser and IIMA.
ING Clarion Real Estate Securities L.P. (“INGCRES”) a registered investment adviser, serves as the Sub-Adviser to Global Real Estate and International Real Estate pursuant to a sub-advisory agreement between the Investment Adviser and INGCRES.
Tradewinds Global Investors, LLC (“Tradewinds”), a registered investment adviser, serves as the Sub-Adviser to Global Value Choice and International Value Choice pursuant to a sub-advisory agreement between the Investment Adviser and Tradewinds.
Brandes Investment Partners, L.P. (“Brandes”), a registered investment adviser, serves as the Sub-Adviser to Emerging Countries and International Value pursuant to a sub-advisory agreement between the Investment Adviser and Brandes.
Julius Baer Investment Management LLC (“JBIM”), a registered investment adviser wholly-owned by the Julius Baer Securities, serves as Sub-Adviser to Foreign pursuant to a sub-advisory agreement between the Investment Adviser and JBIM.
ING Investment Management Co. (“ING IM”), a registered investment adviser, serves as sub-adviser to Disciplined International SmallCap, Global Natural Resources, International Growth Opportunities, and Global Bond pursuant to a sub-advisory agreement between the Investment Adviser and ING IM.
Acadian Asset Management, Inc. (“Acadian”), a registered investment adviser, serves as one of the Sub-Advisers to International SmallCap pursuant to a sub-advisory agreement between the Investment Adviser and Acadian. Batterymarch Financial Management, Inc. (“Batterymarch”) serves as the second Sub-Adviser to International SmallCap pursuant to a sub-advisory agreement between the Investment Adviser and Batterymarch.
ING Investment Management Asia/ Pacific (Hong Kong) Limited (“ING Asia”), a registered investment adviser, serves as the Sub-Adviser to Greater China pursuant to a sub-advisory agreement between the Investment Adviser and ING Asia.
Hansberger Global Investors, Inc. (“HGI”), a registered investment adviser, serves as the Sub-Adviser to International Capital Appreciation pursuant to a sub-advisory agreement between the Investment Adviser and HGI.
For Diversified International, ING Investment Management Co. (the “Consultant” or “ING IM”) is a consultant to the Investment Adviser. The Consultant provides tactical allocation recommendations to the Investment Adviser. The Investment Adviser has set up an Investment Committee made up of a team of professionals to consider, review and implement the recommendations of the Consultant, and retains discretion over implementation of the Consultant’s recommendations. The Consultant provides ongoing recommendations to the Investment Committee of the Investment Adviser quarterly or as warranted by market conditions.
Effective November 1, 2006, certain ING Funds sub-advised by ING IM 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, 2007, Global Natural Resources, International Growth Opportunities and Global Bond waived $270, $433 and $1,815 of such management fees, respectively. These fees are not subject to recoupment.
ING Funds Services, LLC (the “Administrator”), serves as administrator to each Fund. The Funds pay the
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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, INGCRES, IIMA, ING Asia and the Administrator are indirect, wholly-owned subsidiaries of ING Groep N.V. (“ING Groep”). ING Groep is one of the largest financial services organizations in the world, and offers an array of banking, insurance and asset management services to both individual and institutional investors.
NOTE 6 — DISTRIBUTION AND SERVICE FEES
Each share class of the Funds, except Class I, 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 | 0.35 | % | 1.00 | % | 1.00 | % | N/A | 0.25 | % | N/A | ||||||||||||||
| Disciplined International SmallCap | 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 | ||||||||||||||
| Foreign | 0.25 | % | 1.00 | % | 1.00 | % | N/A | 0.25 | % | N/A | ||||||||||||||
| Greater China | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| Index Plus International Equity | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| International Capital Appreciation | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| International Equity Dividend | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| International Growth Opportunities | 0.25 | % | 1.00 | % | 1.00 | % | N/A | 0.25 | % | N/A | ||||||||||||||
| International Real Estate | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| International SmallCap | 0.35 | % | 1.00 | % | 1.00 | % | N/A | 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 | |||||||||||||||
| International Value Opportunities | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| Russia | 0.25 | % | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||
| Emerging Markets Fixed Income | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| Global Bond | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||
| Diversified International | 0.25 | % | 1.00 | % | 1.00 | % | N/A | N/A | 0.50% | |||||||||||||||
| (1) | 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, 2007 through December 31, 2007. Previously, the Distributor had agreed to waive 0.10% of the Distribution Fee for Class A shares of Emerging Countries for the period from January 1, 2006 through December 31, 2006. |
| (2) | The Distributor has agreed to waive 0.25% of the Distribution Fee for Class Q shares and a portion of the Distribution Fee for Class C shares of International Value for the period from January 1, 2007 through December 31, 2007. |
Fees paid to the Distributor by class during the year ended October 31, 2007 are shown in the accompanying Statements of Operations.
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, Class M and Class C shares. For the year ended October 31, 2007, the Distributor retained the following amounts in sales charges for the Funds:
| Class A | Class C | Class M | |||||||||||
| Shares | Shares | Shares | |||||||||||
Initial Sales Charges: | |||||||||||||
| Global Equity Dividend | $ | 195,555 | N/A | N/A | |||||||||
| Global Natural Resources | 39,412 | N/A | N/A | ||||||||||
| Global Real Estate | 1,085,746 | N/A | N/A | ||||||||||
| Global Value Choice | 6,242 | N/A | N/A | ||||||||||
| Disciplined International SmallCap | 395 | N/A | N/A | ||||||||||
| Emerging Countries | 83,410 | N/A | $ | 8 | |||||||||
| Foreign | 137,582 | N/A | N/A | ||||||||||
| Greater China | 111,165 | N/A | N/A | ||||||||||
| Index Plus International Equity | 6,048 | N/A | N/A | ||||||||||
| International Capital Appreciation | 2,051 | N/A | N/A | ||||||||||
| International Equity Dividend | 5,003 | N/A | N/A | ||||||||||
| International Growth Opportunities | 7,528 | N/A | N/A | ||||||||||
| International Real Estate | 307,505 | N/A | N/A | ||||||||||
| International SmallCap | 119,372 | N/A | N/A | ||||||||||
| International Value | 1,505 | N/A | N/A | ||||||||||
| International Value Choice | 11,518 | N/A | N/A | ||||||||||
| International Value Opportunities | 42 | N/A | N/A | ||||||||||
| Russia | 984,347 | N/A | N/A | ||||||||||
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| Class A | Class C | Class M | |||||||||||
| Shares | Shares | Shares | |||||||||||
| Emerging Markets Fixed Income | 3,725 | N/A | N/A | ||||||||||
| Global Bond | 2,726 | N/A | N/A | ||||||||||
| Diversified International | 379,339 | N/A | N/A | ||||||||||
Contingent Deferred Sales Charges: | |||||||||||||
| Global Equity Dividend | 1,883 | 11,850 | N/A | ||||||||||
| Global Natural Resources | 43 | — | N/A | ||||||||||
| Global Real Estate | 46,799 | 140,084 | N/A | ||||||||||
| Global Value Choice | 273 | 111 | N/A | ||||||||||
| Disciplined International SmallCap | — | 50 | N/A | ||||||||||
| Emerging Countries | 280 | 3,787 | N/A | ||||||||||
| Foreign | 14,819 | 9,866 | N/A | ||||||||||
| Greater China | 261 | 5,457 | N/A | ||||||||||
| Index Plus International Equity | — | 778 | N/A | ||||||||||
| International Capital Appreciation | — | 65 | N/A | ||||||||||
| International Equity Dividend | — | — | N/A | ||||||||||
| International Growth Opportunities | — | 106 | N/A | ||||||||||
| International Real Estate | 8,392 | 22,451 | N/A | ||||||||||
| International SmallCap | 31,737 | 10,485 | N/A | ||||||||||
| International Value | 4,909 | 1,729 | N/A | ||||||||||
| International Value Choice | 30,968 | 1,565 | N/A | ||||||||||
| International Value Opportunities | — | — | N/A | ||||||||||
| Russia | — | — | N/A | ||||||||||
| Emerging Markets Fixed Income | — | 59 | N/A | ||||||||||
| Global Bond | — | 30 | N/A | ||||||||||
| Diversified International Fund | 1,221 | 30,178 | N/A | ||||||||||
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At October 31, 2007, 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 | Accrued | |||||||||||||||||
| Management | Administrative | Distribution | Reimbursement/ | |||||||||||||||||
| Fund | Fees | Fees | Fees | Recoupment | Total | |||||||||||||||
| Global Equity Dividend | $ | 229,560 | $ | 32,794 | $ | 197,619 | $ | — | $ | 459,973 | ||||||||||
| Global Natural Resources | 106,887 | 12,843 | 32,108 | — | 151,838 | |||||||||||||||
| Global Real Estate | 938,545 | 128,768 | 530,941 | — | 1,598,254 | |||||||||||||||
| Global Value Choice | 107,447 | 10,745 | 68,090 | — | 186,282 | |||||||||||||||
| Disciplined International SmallCap | 233,031 | 38,838 | 65 | 21,291 | 293,225 | |||||||||||||||
| Emerging Countries | 345,814 | 27,665 | 105,287 | — | 478,766 | |||||||||||||||
| Foreign | 583,934 | 60,163 | 300,523 | — | 944,620 | |||||||||||||||
| Greater China | 81,857 | 7,118 | 28,406 | — | 117,381 | |||||||||||||||
| Index Plus International Equity | 54,252 | 9,864 | 1,997 | 36,023 | 102,136 | |||||||||||||||
| International Capital Appreciation | 101,139 | 11,899 | 2,239 | 27,689 | 142,966 | |||||||||||||||
| International Equity Dividend | 31,711 | 4,228 | 1,920 | — | 37,859 | |||||||||||||||
| International Growth Opportunities | 117,754 | 11,780 | 49,698 | — | 179,232 | |||||||||||||||
| International Real Estate | 398,441 | 41,936 | 163,795 | 34,089 | 638,261 | |||||||||||||||
| International SmallCap | 925,022 | 98,833 | 317,240 | — | 1,341,095 | |||||||||||||||
| International Value | 4,527,171 | 452,712 | 1,415,065 | — | 6,394,948 | |||||||||||||||
| International Value Choice | 74,889 | 7,489 | 10,601 | 59,648 | 152,627 | |||||||||||||||
| International Value Opportunities | 6,610 | 883 | 2,216 | — | 9,709 | |||||||||||||||
| Russia | 932,168 | 74,573 | 186,433 | — | 1,193,174 | |||||||||||||||
| Emerging Markets Fixed Income | 166,371 | 25,959 | 3,809 | 111,594 | 307,733 | |||||||||||||||
| Global Bond | 9,935 | 2,529 | �� | 7,398 | — | 19,862 | ||||||||||||||
| Diversified International | — | 47,968 | 247,220 | — | 295,188 | |||||||||||||||
At October 31, 2007, the following indirect, wholly owned subsidiaries of ING Groep owned the following Funds:
ING Diversified International — Emerging Countries (9.42%); Foreign (14.21%); Index Plus International Equity (96.68%); International Capital Appreciation (96.09%); International Equity Dividend (92.37%); International SmallCap (5.71%); and International Value Choice (65.30%).
ING Life Insurance and Annuity Company — Global Bond (89.27%); Greater China (24.50%); International SmallCap (6.53%); and International Value Opportunities (99.68%).
ING LifeStyle Aggressive Growth Portfolio — Disciplined International SmallCap (22.10%).
ING LifeStyle Growth Portfolio — Disciplined International SmallCap (42.97%) and Emerging Markets Fixed Income (37.32%).
ING LifeStyle Moderate Growth Portfolio — Disciplined International SmallCap (26.30%) and Emerging Markets Fixed Income (38.06%).
ING LifeStyle Moderate Portfolio — Disciplined International SmallCap (8.60%) and Emerging Markets Fixed Income (20.75%).
ING Luxenbourg SA — International Real Estate (9.80%).
ING National Trust — International Growth Opportunities (18.53%).
Control is defined by the 1940 Act as the beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a company. Investment activities of these shareholders could have a material impact on the Funds.
The Investment Adviser may request that the Funds’ portfolio managers use their best efforts (subject to obtaining best execution of each transaction) to allocate a portfolio’s equity security transactions through certain designated broker-dealers. The designated broker-dealer, in turn, will reimburse a portion of the brokerage commissions to pay certain expenses of that Fund. Any amounts credited to a
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Fund are reflected as a reimbursement of expenses in the Statements of Operations.
The Registrants have adopted a Retirement Policy covering all independent trustees of the Funds who will have served as an independent trustee for at least five years at the time of retirement. Benefits under this plan are based on an annual rate as defined in the plan agreement.
The following Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were:
| Affiliated | Commissions | |||||
| Fund | Brokers | Received | ||||
| Emerging Countries | ING Baring LLC | $ | 3,714 | |||
| Foreign | ING Baring LLC | 20,139 | ||||
| ING Securities | 40,839 | |||||
| Global Equity Dividend | ING Baring LLC | 1,025 | ||||
| ING Securities | 349 | |||||
| Global Real Estate | ING Baring LLC | 46,923 | ||||
| Greater China | ING Baring LLC | 11,758 | ||||
| International Real Estate | ING Baring LLC | 15,279 | ||||
| International Value | ING Baring LLC | 6,616 | ||||
| International Value Choice | ING Baring LLC | 408 | ||||
| Russia | ING Bank, London | 9,700 | ||||
| ING Baring LLC | 12,262 | |||||
NOTE 8 — OTHER ACCRUED EXPENSES AND LIABILITIES
At October 31, 2007, the Funds had the following payables included in Other Accrued Expenses and Liabilities on the Statement of Assets and Liabilities that exceeded 5% of total liabilities:
| Fund | Expense | Amount | ||||||
| Index Plus International Equity | Custody | $ | 26,132 | |||||
| Audit | 12,382 | |||||||
| Postage | 10,799 | |||||||
| International Value Opportunities | Accrued Offering | 76,888 | ||||||
NOTE 9 — EXPENSE LIMITATIONS
The Investment Adviser has agreed to limit expenses, excluding interest expenses, taxes, brokerage and extraordinary expenses (and Acquired Fund fees and expenses) to the levels listed below:
Maximum Operating Expense Limit (as a percentage of average net assets)
| Class A | Class B | Class C | Class I | Class O | Class Q | Class R | ||||||||||||||||||||||
| Global Equity Dividend | 1.40 | % | 2.15 | % | 2.15 | % | 1.15 | % | 1.40 | % | N/A | N/A | ||||||||||||||||
| Global Natural Resources | 2.75 | % | N/A | N/A | 2.50 | % | N/A | N/A | N/A | |||||||||||||||||||
| Global Real Estate | 1.75 | % | 2.50 | % | 2.50 | % | 1.50 | % | 1.75 | % | N/A | N/A | ||||||||||||||||
| Global Value Choice | 1.85 | % | 2.50 | % | 2.50 | % | 1.50 | % | N/A | 1.75 | % | N/A | ||||||||||||||||
| Disciplined International SmallCap | 1.20 | % | 1.95 | % | 1.95 | % | 0.95 | % | N/A | N/A | N/A | |||||||||||||||||
Emerging Countries(1) | 2.25 | % | 2.90 | % | 2.90 | % | 1.75 | % | N/A | 2.15 | % | N/A | ||||||||||||||||
Foreign(2) | 1.95 | % | 2.70 | % | 2.70 | % | 1.60 | % | N/A | 1.85 | % | N/A | ||||||||||||||||
| Greater China | 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 | % | N/A | N/A | N/A | |||||||||||||||||
| International Capital Appreciation | 1.50 | % | 2.25 | % | 2.25 | % | 1.25 | % | N/A | N/A | N/A | |||||||||||||||||
| International Equity Dividend | 1.40 | % | 2.15 | % | 2.15 | % | 1.15 | % | N/A | N/A | N/A | |||||||||||||||||
International Growth Opportunities(3) | 2.75 | % | 3.50 | % | 3.50 | % | 2.50 | % | N/A | 2.75 | % | N/A | ||||||||||||||||
| International Real Estate | 1.50 | % | 2.25 | % | 2.25 | % | 1.25 | % | N/A | N/A | N/A | |||||||||||||||||
| International SmallCap | 1.95 | % | 2.60 | % | 2.60 | % | 1.40 | % | N/A | 1.85 | % | N/A | ||||||||||||||||
| International Value | 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 | |||||||||||||||||
| International Value Opportunities | 1.40 | % | 2.15 | % | 2.15 | % | 1.15 | % | N/A | N/A | N/A | |||||||||||||||||
| Russia | 3.35 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Emerging Markets Fixed Income | 1.25 | % | 2.00 | % | 2.00 | % | 1.00 | % | N/A | N/A | N/A | |||||||||||||||||
| Global Bond | 0.90 | % | 1.65 | % | 1.65 | % | 0.61 | % | N/A | N/A | N/A | |||||||||||||||||
Diversified International(4) | 0.35 | % | 1.10 | % | 1.10 | % | 0.10 | % | N/A | N/A | 0.60% | |||||||||||||||||
| (1) | Effective January 1, 2006, pursuant to a side agreement, ING Investments has lowered the expense limits for Emerging Countries through at least December 31, 2007. 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 December 31, 2007, 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, 2007, ING Investments has lowered the expense limits for Foreign through at least March 1, 2008. The expense limits for the Foreign are 1.70%, 2.45%, 2.45%, 1.35% and 1.60% for Class A, B, C, I and Q shares, respectively. If, after March 1, 2008, 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, 2007, ING Investments has lowered the expense limits for International Growth Opportunities through at least March 1, 2008. The expense limits for International Growth Opportunities are 1.95%, 2.70%, 2.70%, 1.60% and 1.85% for Class A, B, C, I and |
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| Q shares, respectively. If, after March 1, 2008, ING Investments elects not to renew the side agreement, the expense limits will revert to the limits listed in the table above. There is no guarantee that this side agreement will continue after that date. The side agreement will only renew if ING Investments elects to renew it. | |
| (4) | The operating expense limits for Diversified International set out above apply only at the fund level and do not limit the fees payable by the underlying investment companies in which the fund invests. Effective July 23, 2007, the total expense limits including the underlying investment companies are 1.47%, 2.22%, 2.22% 1.22% and 1.72% for Class A, B, C, I and R shares, respectively. Prior to July 23, 2007, the total expense limits were 1.65%, 2.40% 2.40% 1.40% and 1.90% for Class A, B, C, I and R shares, respectively. |
The Investment Adviser may at a later date recoup from a Fund management fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, a Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations for each Fund. Amounts payable by the Investment Adviser are reflected on the accompanying Statement of Assets and Liabilities for each Fund.
As of October 31, 2007, 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:
| October 31, | ||||||||||||||||
| Fund | 2008 | 2009 | 2010 | Total | ||||||||||||
| Index Plus International Equity | $ | — | $ | 36,813 | $ | — | $ | 36,813 | ||||||||
| International Capital Appreciation | — | 66,284 | — | 66,284 | ||||||||||||
| International Equity Dividend | — | — | 24,309 | 24,309 | ||||||||||||
| International Real Estate | — | 119,550 | 20,669 | 140,219 | ||||||||||||
| International Value Choice | — | 14,897 | 4,469 | 19,366 | ||||||||||||
| International Value Opportunities | — | — | 96,662 | 96,662 | ||||||||||||
| Global Bond | — | 39,924 | 148,408 | 188,332 | ||||||||||||
| Diversified International | — | 372,357 | 1,428,893 | 1,801,250 | ||||||||||||
The expense limitation agreements are contractual and shall renew automatically for one-year terms unless ING Investments or IMF provides written notice of the termination of the expense limitation agreement at least 90 days prior to the end of the then current term.
NOTE 10 — LINE OF CREDIT
All of the Funds included in this report, in addition to certain other funds managed by the Investment Adviser, have entered into an unsecured committed revolving line of credit agreement (the “Credit Agreement”) with The Bank of New York Mellon Corporation (“BNY”) for an aggregate amount of $125,000,000. The proceeds may be used only to: (1) temporarily finance the purchase and sale of securities; (2) finance the redemption of shares of an investor in the Funds; and (3) enable the Funds to meet other emergency expenses as defined in the Credit Agreement. The Funds to which the line of credit is available pay a commitment fee equal to 0.09% per annum on the daily unused portion of the committed line amount payable quarterly in arrears.
The following Funds utilized the line of credit during the year ended October 31, 2007:
| Approximate | ||||||||||||
| Weighted | ||||||||||||
| Approximate | Average | |||||||||||
| Average Daily | Interest Rate | |||||||||||
| Days | Balance for | for Days | ||||||||||
| Fund | Utilized | Days Utilized | Utilized | |||||||||
| Global Natural Resources | 40 | 659,425 | 5.72 | % | ||||||||
| Global Real Estate | 1 | 9,850,000 | 5.76 | % | ||||||||
| Global Value Choice | 1 | 1,430,000 | 5.74 | % | ||||||||
Disciplined International SmallCap(1) | 3 | $ | 1,240,000 | 5.30 | % | |||||||
| Emerging Countries | 13 | 1,717,692 | 5.58 | % | ||||||||
| Foreign | 1 | 6,440,000 | 5.77 | % | ||||||||
| Index Plus International Equity | 27 | 4,204,259 | 5.75 | % | ||||||||
| International Growth Opportunities | 55 | 1,740,182 | 5.46 | % | ||||||||
| International SmallCap | 18 | 2,402,778 | 5.60 | % | ||||||||
| International Value | 6 | 5,215,000 | 5.70 | % | ||||||||
| International Value Choice | 6 | 3,131,667 | 5.68 | % | ||||||||
| Russia | 54 | 6,967,222 | 5.64 | % | ||||||||
| Emerging Markets Fixed Income | 8 | 2,300,000 | 5.74 | % | ||||||||
| Global Bond | 5 | 1,370,000 | 5.22 | % | ||||||||
| (1) | At October 31, 2007, Disciplined International SmallCap had an outstanding balance of $990,000. |
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NOTE 11 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Global Equity Dividend (Number of Shares) | ||||||||||||||||||||
| Shares sold | 6,497,494 | 3,804,463 | 1,035,641 | 980,380 | ||||||||||||||||
| Dividends reinvested | 465,717 | 163,319 | 161,965 | 68,137 | ||||||||||||||||
| Shares redeemed | (3,024,146 | ) | (2,656,504 | ) | (595,508 | ) | (399,091 | ) | ||||||||||||
| Net increase in shares outstanding | 3,939,065 | 1,311,278 | 602,098 | 649,426 | ||||||||||||||||
| Global Equity Dividend ($) | ||||||||||||||||||||
| Shares sold | $ | 104,816,704 | $ | 55,618,277 | $ | 16,616,360 | $ | 14,217,375 | ||||||||||||
| Dividends reinvested | 7,440,753 | 2,341,599 | 2,570,336 | 973,435 | ||||||||||||||||
| Shares redeemed | (48,779,296 | ) | (37,587,681 | ) | (9,575,960 | ) | (5,809,722 | ) | ||||||||||||
| Net increase | $ | 63,478,161 | $ | 20,372,195 | $ | 9,610,736 | $ | 9,381,088 | ||||||||||||
| Class C | Class I | Class O | ||||||||||||||||||
| August 1, | November 15, | |||||||||||||||||||
| Year Ended | Year Ended | 2007(1) to | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2007 | |||||||||||||||||
| Global Equity Dividend (Number of Shares) | ||||||||||||||||||||
| Shares sold | 3,220,887 | 1,792,162 | 64 | 1,823,965 | ||||||||||||||||
| Dividends reinvested | 259,339 | 96,575 | — | 33,142 | ||||||||||||||||
| Shares redeemed | (965,038 | ) | (714,422 | ) | — | (446,487 | ) | |||||||||||||
| Net increase in shares outstanding | 2,515,188 | 1,174,315 | 64 | 1,410,620 | ||||||||||||||||
| Global Equity Dividend ($) | ||||||||||||||||||||
| Shares sold | $ | 51,629,780 | $ | 25,941,781 | $ | 1,018 | $ | 29,498,450 | ||||||||||||
| Dividends reinvested | 4,112,436 | 1,375,816 | — | 540,071 | ||||||||||||||||
| Shares redeemed | (15,559,185 | ) | (10,300,752 | ) | — | (7,222,361 | ) | |||||||||||||
| Net increase | $ | 40,183,031 | $ | 17,016,845 | $ | 1,018 | $ | 22,816,160 | ||||||||||||
| Class A | Class I | |||||||||||||||||||
| August 1, | ||||||||||||||||||||
| Year Ended | Year Ended | 2007(1) to | ||||||||||||||||||
| October 31, | October 31, | October 31, | ||||||||||||||||||
| 2007 | 2006 | 2007 | ||||||||||||||||||
| Global Natural Resources (Number of Shares) | ||||||||||||||||||||
| Shares sold | 1,398,112 | 2,142,869 | 157 | |||||||||||||||||
| Dividends reinvested | 570,030 | 18,990 | — | |||||||||||||||||
| Shares redeemed | (2,449,466 | ) | (2,493,021 | ) | (1 | ) | ||||||||||||||
| Net increase (decrease) in shares outstanding | (481,324 | ) | (331,162 | ) | 156 | |||||||||||||||
| Global Natural Resources ($) | ||||||||||||||||||||
| Shares sold | $ | 16,676,935 | $ | 22,092,980 | $ | 2,027 | ||||||||||||||
| Dividends reinvested | 6,190,526 | 161,561 | — | |||||||||||||||||
| Shares redeemed | (27,924,309 | ) | (25,464,330 | ) | (12 | ) | ||||||||||||||
| Net increase (decrease) | $ | (5,056,848 | ) | $ | (3,209,789 | ) | $ | 2,015 | ||||||||||||
| (1) | Commencement of operations. |
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| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Global Real Estate (Number of Shares) | ||||||||||||||||||||
| Shares sold | 44,628,840 | 14,446,150 | 1,826,489 | 958,288 | ||||||||||||||||
| Dividends reinvested | 1,488,668 | 599,957 | 108,319 | 63,626 | ||||||||||||||||
| Shares redeemed | (21,034,520 | ) | (2,090,498 | ) | (786,045 | ) | (191,662 | ) | ||||||||||||
| Net increase in shares outstanding | 25,082,988 | 12,955,609 | 1,148,763 | 830,252 | ||||||||||||||||
| Global Real Estate ($) | ||||||||||||||||||||
| Shares sold | $ | 1,053,431,057 | $ | 287,936,127 | $ | 37,270,066 | $ | 16,479,220 | ||||||||||||
| Dividends reinvested | 34,928,676 | 10,752,914 | 2,180,962 | 973,780 | ||||||||||||||||
| Shares redeemed | (490,048,454 | ) | (40,748,408 | ) | (15,294,287 | ) | (3,240,748 | ) | ||||||||||||
| Net increase | $ | 598,311,279 | $ | 257,940,633 | $ | 24,156,741 | $ | 14,212,252 | ||||||||||||
| Class C | Class I | Class O | ||||||||||||||||||
| November 15, | ||||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | 2006(1) to | ||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | October 31, | ||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | 2007 | ||||||||||||||||
Global Real Estate (Number of Shares) | ||||||||||||||||||||
| Shares sold | 11,726,737 | 4,044,423 | 2,833,616 | 503,082 | 1,927,071 | |||||||||||||||
| Dividends reinvested | 364,760 | 112,442 | 51,336 | 3,220 | 32,070 | |||||||||||||||
| Shares redeemed | (3,551,184 | ) | (512,505 | ) | (214,363 | ) | (99,415 | ) | (878,519 | ) | ||||||||||
| Net increase in shares outstanding | 8,540,313 | 3,644,360 | 2,670,589 | 406,887 | 1,080,622 | |||||||||||||||
Global Real Estate ($) | ||||||||||||||||||||
| Shares sold | $ | 250,279,742 | $ | 72,912,712 | $ | 65,388,279 | $ | 9,644,455 | $ | 46,088,840 | ||||||||||
| Dividends reinvested | 7,711,845 | 1,815,573 | 1,203,302 | 65,390 | 756,820 | |||||||||||||||
| Shares redeemed | (72,337,353 | ) | (8,989,662 | ) | (4,776,229 | ) | (1,901,796 | ) | (20,349,596 | ) | ||||||||||
| Net increase | $ | 185,654,234 | $ | 65,738,623 | $ | 61,815,352 | $ | 7,808,049 | $ | 26,496,064 | ||||||||||
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Global Value Choice (Number of Shares) | ||||||||||||||||||||
| Shares sold | 413,843 | 681,706 | 125,643 | 92,289 | ||||||||||||||||
| Dividends reinvested | — | 9,174 | — | — | ||||||||||||||||
| Shares redeemed | (528,474 | ) | (822,178 | ) | (312,118 | ) | (378,702 | ) | ||||||||||||
| Net decrease in shares outstanding | (114,631 | ) | (131,298 | ) | (186,475 | ) | (286,413 | ) | ||||||||||||
Global Value Choice ($) | ||||||||||||||||||||
| Shares sold | $ | 10,390,704 | $ | 13,807,227 | $ | 3,421,856 | $ | 2,050,988 | ||||||||||||
| Dividends reinvested | — | 177,004 | — | — | ||||||||||||||||
| Shares redeemed | (13,039,443 | ) | (16,601,505 | ) | (8,358,692 | ) | (8,338,011 | ) | ||||||||||||
| Net decrease | $ | (2,648,739 | ) | $ | (2,617,274 | ) | $ | (4,936,836 | ) | $ | (6,287,023 | ) | ||||||||
| (1) | Commencement of operations. |
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| Class C | Class I | |||||||||||||||||||
| September 6, | ||||||||||||||||||||
| Year Ended | Year Ended | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Global Value Choice (Number of Shares) | ||||||||||||||||||||
| Shares sold | 224,819 | 133,353 | 185,884 | 139,822 | ||||||||||||||||
| Dividends reinvested | — | 901 | — | — | ||||||||||||||||
| Shares redeemed | (281,123 | ) | (390,058 | ) | (49,776 | ) | (1,325 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (56,304 | ) | (255,804 | ) | 136,108 | 138,497 | ||||||||||||||
Global Value Choice ($) | ||||||||||||||||||||
| Shares sold | $ | 5,420,100 | $ | 2,605,554 | $ | 4,448,082 | $ | 2,977,626 | ||||||||||||
| Dividends reinvested | — | 16,685 | — | — | ||||||||||||||||
| Shares redeemed | (6,746,051 | ) | (7,611,834 | ) | (1,272,296 | ) | (27,524 | ) | ||||||||||||
| Net increase (decrease) | $ | (1,325,951 | ) | $ | (4,989,595 | ) | $ | 3,175,786 | $ | 2,950,102 | ||||||||||
| Class Q | ||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||
| October 31, | October 31, | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
Global Value Choice (Number of Shares) | ||||||||||||||||||||
| Shares sold | 9,271 | 58,539 | ||||||||||||||||||
| Dividends reinvested | — | 1,706 | ||||||||||||||||||
| Shares redeemed | (38,134 | ) | (158,326 | ) | ||||||||||||||||
| Net decrease in shares outstanding | (28,863 | ) | (98,081 | ) | ||||||||||||||||
Global Value Choice ($) | ||||||||||||||||||||
| Shares sold | $ | 270,527 | $ | 1,385,145 | ||||||||||||||||
| Dividends reinvested | — | 38,450 | ||||||||||||||||||
| Shares redeemed | (1,113,397 | ) | (3,883,858 | ) | ||||||||||||||||
| Net decrease | $ | (842,870 | ) | $ | (2,460,263 | ) | ||||||||||||||
| Class A | Class B | Class C | Class I | |||||||||||||||||
| December 20, | December 20, | December 20, | December 20, | |||||||||||||||||
| 2006(1) to | 2006(1) to | 2006(1) to | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||||||
Disciplined International SmallCap (Number of Shares) | ||||||||||||||||||||
| Shares sold | 9,086 | 439 | 5,041 | 43,082,677 | ||||||||||||||||
| Shares redeemed | (3,367 | ) | — | (427 | ) | (4,681,887 | ) | |||||||||||||
| Net increase in shares outstanding | 5,719 | 439 | 4,614 | 38,400,790 | ||||||||||||||||
Disciplined International SmallCap ($) | ||||||||||||||||||||
| Shares sold | $ | 103,553 | $ | 4,533 | $ | 57,840 | $ | 492,455,050 | ||||||||||||
| Shares redeemed | (37,185 | ) | — | (4,978 | ) | (54,244,725 | ) | |||||||||||||
| Net increase | $ | 66,368 | $ | 4,533 | $ | 52,862 | $ | 438,210,325 | ||||||||||||
| (1) | Commencement of operations. |
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| Class A (2) | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Emerging Countries (Number of Shares) | ||||||||||||||||||||
| Shares sold | 1,677,506 | 1,554,745 | 120,366 | 158,904 | ||||||||||||||||
| Shares converted | 48,167 | — | — | — | ||||||||||||||||
| Dividends reinvested | 49,397 | 17,399 | 2,139 | — | ||||||||||||||||
| Shares redeemed | (1,177,964 | ) | (1,105,391 | ) | (180,617 | ) | (233,526 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | 597,106 | 466,753 | (58,112 | ) | (74,622 | ) | ||||||||||||||
Emerging Countries ($) | ||||||||||||||||||||
| Shares sold | $ | 61,051,631 | $ | 42,544,352 | $ | 4,540,140 | $ | 4,284,432 | ||||||||||||
| Shares converted | 1,570,432 | — | — | — | ||||||||||||||||
| Dividends reinvested | 1,591,065 | 440,876 | 67,985 | — | ||||||||||||||||
| Shares redeemed | (42,526,644 | ) | (30,177,710 | ) | (6,583,827 | ) | (6,263,528 | ) | ||||||||||||
| Net increase (decrease) | $ | 21,686,484 | $ | 12,807,518 | $ | (1,975,702 | ) | $ | (1,979,096 | ) | ||||||||||
| Class C | Class I | |||||||||||||||||||
| December 21, | ||||||||||||||||||||
| Year Ended | Year Ended | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Emerging Countries (Number of Shares) | ||||||||||||||||||||
| Shares sold | 415,931 | 650,919 | 517,678 | 1,259,659 | ||||||||||||||||
| Dividends reinvested | 6,705 | 2,002 | 13,851 | — | ||||||||||||||||
| Shares redeemed | (323,475 | ) | (302,871 | ) | (322,580 | ) | (470,530 | ) | ||||||||||||
| Net increase in shares outstanding | 99,161 | 350,050 | 208,949 | 789,129 | ||||||||||||||||
Emerging Countries ($) | ||||||||||||||||||||
| Shares sold | $ | 14,223,797 | $ | 16,487,366 | $ | 18,694,152 | $ | 35,774,589 | ||||||||||||
| Dividends reinvested | 201,560 | 47,440 | 446,558 | — | ||||||||||||||||
| Shares redeemed | (10,757,579 | ) | (7,797,300 | ) | (11,228,172 | ) | (12,692,384 | ) | ||||||||||||
| Net increase | $ | 3,667,778 | $ | 8,737,506 | $ | 7,912,538 | $ | 23,082,205 | ||||||||||||
| Class M(2) | Class Q | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Emerging Countries (Number of Shares) | ||||||||||||||||||||
| Shares sold | 49 | 2,691 | 383,862 | 203,459 | ||||||||||||||||
| Shares converted | (48,826 | ) | — | — | — | |||||||||||||||
| Dividends reinvested | 425 | 46 | 5,154 | 2,644 | ||||||||||||||||
| Shares redeemed | (1,853 | ) | (4,694 | ) | (243,283 | ) | (298,675 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (50,205 | ) | (1,957 | ) | 145,733 | (92,572 | ) | |||||||||||||
Emerging Countries ($) | ||||||||||||||||||||
| Shares sold | $ | 1,496 | $ | 75,928 | $ | 14,213,705 | $ | 5,761,374 | ||||||||||||
| Shares converted | (1,570,432 | ) | — | — | — | |||||||||||||||
| Dividends reinvested | 13,499 | 1,146 | 171,687 | 69,164 | ||||||||||||||||
| Shares redeemed | (57,877 | ) | (130,478 | ) | (8,769,423 | ) | (8,528,955 | ) | ||||||||||||
| Net increase (decrease) | $ | (1,613,314 | ) | $ | (53,404 | ) | $ | 5,615,969 | $ | (2,698,417 | ) | |||||||||
| (1) | Commencement of operations. |
| (2) | Effective January 2, 2007, Class M shareholders of Emerging Countries were converted to Class A shares of the fund. |
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NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Foreign (Number of Shares) | ||||||||||||||||||||
| Shares sold | 5,586,881 | 5,804,035 | 465,033 | 859,893 | ||||||||||||||||
| Dividends reinvested | 268,335 | 134,508 | 54,324 | 27,967 | ||||||||||||||||
| Shares redeemed | (2,834,087 | ) | (2,401,362 | ) | (418,014 | ) | (359,114 | ) | ||||||||||||
| Net increase in shares outstanding | 3,021,129 | 3,537,181 | 101,343 | 528,746 | ||||||||||||||||
Foreign ($) | ||||||||||||||||||||
| Shares sold | $ | 116,065,154 | $ | 98,299,748 | $ | 9,375,051 | $ | 14,233,385 | ||||||||||||
| Dividends reinvested | 5,170,819 | 2,082,190 | 1,019,661 | 425,093 | ||||||||||||||||
| Shares redeemed | (58,600,260 | ) | (40,561,430 | ) | (8,375,577 | ) | (6,018,453 | ) | ||||||||||||
| Net increase | $ | 62,635,713 | $ | 59,820,508 | $ | 2,019,135 | $ | 8,640,025 | ||||||||||||
| Class C | Class I | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Foreign (Number of Shares) | ||||||||||||||||||||
| Shares sold | 2,788,802 | 3,422,194 | 2,245,294 | 3,238,230 | ||||||||||||||||
| Dividends reinvested | 201,179 | 93,622 | 121,586 | 1,630 | ||||||||||||||||
| Shares redeemed | (1,297,440 | ) | (1,050,690 | ) | (1,080,849 | ) | (48,706 | ) | ||||||||||||
| Net increase in shares outstanding | 1,692,541 | 2,465,126 | 1,286,031 | 3,191,154 | ||||||||||||||||
Foreign ($) | ||||||||||||||||||||
| Shares sold | $ | 55,924,710 | $ | 56,926,173 | $ | 47,286,509 | $ | 56,439,802 | ||||||||||||
| Dividends reinvested | 3,781,772 | 1,424,923 | 2,373,357 | 25,483 | ||||||||||||||||
| Shares redeemed | (26,171,530 | ) | (17,589,538 | ) | (22,654,368 | ) | (883,854 | ) | ||||||||||||
| Net increase | $ | 33,534,952 | $ | 40,761,558 | $ | 27,005,498 | $ | 55,581,431 | ||||||||||||
| Class Q | ||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||
| October 31, | October 31, | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
Foreign (Number of Shares) | ||||||||||||||||||||
| Shares sold | 234 | — | ||||||||||||||||||
| Dividends reinvested | 2,264 | 1,680 | ||||||||||||||||||
| Shares redeemed | (30,513 | ) | (10,236 | ) | ||||||||||||||||
| Net decrease in shares outstanding | (28,015 | ) | (8,556 | ) | ||||||||||||||||
Foreign ($) | ||||||||||||||||||||
| Shares sold | $ | 5,012 | $ | — | ||||||||||||||||
| Dividends reinvested | 43,762 | 26,071 | ||||||||||||||||||
| Shares redeemed | (652,894 | ) | (174,891 | ) | ||||||||||||||||
| Net decrease | $ | (604,120 | ) | $ | (148,820 | ) | ||||||||||||||
139
Table of Contents
NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | |||||||||||||||||||
| December 21, | January 6, | |||||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Greater China (Number of Shares) | ||||||||||||||||||||
| Shares sold | 2,196,767 | 2,060,629 | 295,918 | 173,344 | ||||||||||||||||
| Dividends reinvested | 4,251 | — | 626 | — | ||||||||||||||||
| Shares redeemed | (1,077,963 | ) | (162,486 | ) | (146,993 | ) | (15,849 | ) | ||||||||||||
| Net increase in shares outstanding | 1,123,055 | 1,898,143 | 149,551 | 157,495 | ||||||||||||||||
| Greater China ($) | ||||||||||||||||||||
| Shares sold | $ | 36,379,127 | $ | 22,315,810 | $ | 4,827,247 | $ | 2,005,078 | ||||||||||||
| Dividends reinvested | 59,565 | — | 8,720 | — | ||||||||||||||||
| Shares redeemed | (17,193,019 | ) | (1,889,215 | ) | (2,430,746 | ) | (183,820 | ) | ||||||||||||
| Net increase | $ | 19,245,673 | $ | 20,426,595 | $ | 2,405,221 | $ | 1,821,258 | ||||||||||||
| Class C | Class I | |||||||||||||||||||
| January 11, | May 8, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Greater China (Number of Shares) | ||||||||||||||||||||
| Shares sold | 559,664 | 175,293 | 338 | 1,771 | ||||||||||||||||
| Dividends reinvested | 357 | — | 9 | — | ||||||||||||||||
| Shares redeemed | (218,283 | ) | (4,406 | ) | — | — | ||||||||||||||
| Net increase in shares outstanding | 341,738 | 170,887 | 347 | 1,771 | ||||||||||||||||
| Greater China ($) | ||||||||||||||||||||
| Shares sold | $ | 9,969,510 | $ | 2,052,770 | $ | 6,820 | $ | 20,682 | ||||||||||||
| Dividends reinvested | 4,978 | — | 125 | — | ||||||||||||||||
| Shares redeemed | (3,407,996 | ) | (49,651 | ) | — | — | ||||||||||||||
| Net increase | $ | 6,566,492 | $ | 2,003,119 | $ | 6,945 | $ | 20,682 | ||||||||||||
| Class A | Class B | |||||||||||||||||||
| December 21, | January 12, | |||||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Index Plus International Equity (Number of Shares) | ||||||||||||||||||||
| Shares sold | 128,123 | 1,593,260 | 32,179 | 23,222 | ||||||||||||||||
| Dividends reinvested | 1,989 | — | 632 | — | ||||||||||||||||
| Shares redeemed | (1,041,019 | ) | (522,199 | ) | (2,719 | ) | (495 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (910,907 | ) | 1,071,061 | 30,092 | 22,727 | |||||||||||||||
| Index Plus International Equity ($) | ||||||||||||||||||||
| Shares sold | $ | 1,644,502 | $ | 16,004,839 | $ | 413,854 | $ | 250,885 | ||||||||||||
| Dividends reinvested | 23,642 | — | 7,493 | — | ||||||||||||||||
| Shares redeemed | (13,003,326 | ) | (5,896,965 | ) | (36,087 | ) | (5,729 | ) | ||||||||||||
| Net increase (decrease) | $ | (11,335,182 | ) | $ | 10,107,874 | $ | 385,260 | $ | 245,156 | |||||||||||
| (1) | Commencement of operations. |
140
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NOTE 11 — CAPITAL SHARES (continued)
| Class C | Class I | |||||||||||||||||||
| January 12, | December 21, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Index Plus International Equity (Number of Shares) | ||||||||||||||||||||
| Shares sold | 53,278 | 47,884 | 4,628,592 | 6,879,841 | ||||||||||||||||
| Dividends reinvested | 773 | — | 237,356 | — | ||||||||||||||||
| Shares redeemed | (18,988 | ) | (1,878 | ) | (3,125,186 | ) | (162,917 | ) | ||||||||||||
| Net increase in shares outstanding | 35,063 | 46,006 | 1,740,762 | 6,716,924 | ||||||||||||||||
| Index Plus International Equity ($) | ||||||||||||||||||||
| Shares sold | $ | 680,086 | $ | 512,540 | $ | 59,372,768 | $ | 74,436,693 | ||||||||||||
| Dividends reinvested | 9,149 | — | 2,817,418 | — | ||||||||||||||||
| Shares redeemed | (234,315 | ) | (21,900 | ) | (39,684,824 | ) | (1,770,309 | ) | ||||||||||||
| Net increase | $ | 454,920 | $ | 490,640 | $ | 22,505,362 | $ | 72,666,384 | ||||||||||||
| Class A | Class B | |||||||||||||||||||
| December 21, | January 9, | |||||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Capital Appreciation (Number of Shares) | ||||||||||||||||||||
| Shares sold | 192,965 | 635,018 | 61,628 | 6,175 | ||||||||||||||||
| Dividends reinvested | 413 | — | 115 | — | ||||||||||||||||
| Shares redeemed | (207,146 | ) | (312,161 | ) | (3,275 | ) | (378 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (13,768 | ) | 322,857 | 58,468 | 5,797 | |||||||||||||||
| International Capital Appreciation ($) | ||||||||||||||||||||
| Shares sold | $ | 2,368,777 | $ | 6,494,040 | $ | 807,880 | $ | 65,827 | ||||||||||||
| Dividends reinvested | 4,867 | — | 1,344 | — | ||||||||||||||||
| Shares redeemed | (2,460,407 | ) | (3,430,448 | ) | (40,301 | ) | (3,952 | ) | ||||||||||||
| Net increase (decrease) | $ | (86,763 | ) | $ | 3,063,592 | $ | 768,923 | $ | 61,875 | |||||||||||
| Class C | Class I | |||||||||||||||||||
| January 24, | December 21, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Capital Appreciation (Number of Shares) | ||||||||||||||||||||
| Shares sold | 66,475 | 12,621 | 5,530,264 | 4,893,411 | ||||||||||||||||
| Dividends reinvested | 123 | — | 128,072 | — | ||||||||||||||||
| Shares redeemed | (6,361 | ) | (6,848 | ) | (331,815 | ) | (762,409 | ) | ||||||||||||
| Net increase in shares outstanding | 60,237 | 5,773 | 5,326,521 | 4,131,002 | ||||||||||||||||
| International Capital Appreciation ($) | ||||||||||||||||||||
| Shares sold | $ | 888,507 | $ | 136,078 | $ | 69,653,165 | $ | 51,868,418 | ||||||||||||
| Dividends reinvested | 1,448 | — | 1,509,974 | — | ||||||||||||||||
| Shares redeemed | (80,137 | ) | (77,684 | ) | (4,575,021 | ) | (8,729,175 | ) | ||||||||||||
| Net increase | $ | 809,818 | $ | 58,394 | $ | 66,588,118 | $ | 43,139,243 | ||||||||||||
| (1) | Commencement of operations. |
141
Table of Contents
NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | Class C | Class I | |||||||||||||||||
| June 28, | June 28, | June 28, | June 28, | |||||||||||||||||
| 2007(1) to | 2007(1) to | 2007(1) to | 2007(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||||||
| International Equity Dividend (Number of Shares) | ||||||||||||||||||||
| Shares sold | 393,069 | 22,651 | 126,454 | 5,265,562 | ||||||||||||||||
| Shares redeemed | (3,131 | ) | (31 | ) | — | (7,892 | ) | |||||||||||||
| Net increase in shares outstanding | 389,938 | 22,620 | 126,454 | 5,257,670 | ||||||||||||||||
| International Equity Dividend ($) | ||||||||||||||||||||
| Shares sold | $ | 3,902,205 | $ | 218,286 | $ | 1,252,342 | $ | 52,290,180 | ||||||||||||
| Shares redeemed | (31,138 | ) | (310 | ) | — | (78,707 | ) | |||||||||||||
| Net increase | $ | 3,871,067 | $ | 217,976 | $ | 1,252,342 | $ | 52,211,473 | ||||||||||||
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Growth Opportunities (Number of Shares) | ||||||||||||||||||||
| Shares sold | 606,666 | 1,130,290 | 90,648 | 222,011 | ||||||||||||||||
| Dividends reinvested | 424,904 | 65,163 | 101,617 | 9,571 | ||||||||||||||||
| Shares redeemed | (1,337,839 | ) | (1,417,023 | ) | (360,538 | ) | (454,724 | ) | ||||||||||||
| Net decrease in shares outstanding | (306,269 | ) | (221,570 | ) | (168,273 | ) | (223,142 | ) | ||||||||||||
| International Growth Opportunities ($) | ||||||||||||||||||||
| Shares sold | $ | 8,143,922 | $ | 13,974,139 | $ | 1,180,526 | $ | 2,619,810 | ||||||||||||
| Dividends reinvested | 5,354,882 | 754,581 | 1,234,642 | 107,204 | ||||||||||||||||
| Redemption fee proceeds | — | 257 | — | — | ||||||||||||||||
| Shares redeemed | (17,966,521 | ) | (17,628,847 | ) | (4,705,424 | ) | (5,368,489 | ) | ||||||||||||
| Net decrease | $ | (4,467,717 | ) | $ | (2,899,870 | ) | $ | (2,290,256 | ) | $ | (2,641,475 | ) | ||||||||
| Class C | Class I | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Growth Opportunities (Number of Shares) | ||||||||||||||||||||
| Shares sold | 150,534 | 125,967 | 360,989 | 413,947 | ||||||||||||||||
| Dividends reinvested | 65,339 | 5,646 | 110,577 | 41,301 | ||||||||||||||||
| Shares redeemed | (192,575 | ) | (300,691 | ) | (827,433 | ) | (1,585,422 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | 23,298 | (169,078 | ) | (355,867 | ) | (1,130,174 | ) | |||||||||||||
| International Growth Opportunities ($) | ||||||||||||||||||||
| Shares sold | $ | 1,979,430 | $ | 1,518,241 | $ | 4,754,225 | $ | 5,055,453 | ||||||||||||
| Dividends reinvested | 793,868 | 63,297 | 1,383,313 | 475,409 | ||||||||||||||||
| Shares redeemed | (2,507,472 | ) | (3,586,904 | ) | (10,767,823 | ) | (18,368,063 | ) | ||||||||||||
| Net increase (decrease) | $ | 265,826 | $ | (2,005,366 | ) | $ | (4,630,285 | ) | $ | (12,837,201 | ) | |||||||||
| (1) | Commencement of operations. |
142
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NOTE 11 — CAPITAL SHARES (continued)
| Class Q | ||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||
| October 31, | October 31, | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
| International Growth Opportunities (Number of Shares) | ||||||||||||||||||||
| Shares sold | 594,965 | 1,426,062 | ||||||||||||||||||
| Dividends reinvested | 225,064 | 24,539 | ||||||||||||||||||
| Shares redeemed | (787,068 | ) | (716,043 | ) | ||||||||||||||||
| Net increase in shares outstanding | 32,961 | 734,558 | ||||||||||||||||||
| International Growth Opportunities ($) | ||||||||||||||||||||
| Shares sold | $ | 7,984,633 | $ | 17,444,379 | ||||||||||||||||
| Dividends reinvested | 2,804,295 | 281,487 | ||||||||||||||||||
| Shares redeemed | (10,306,446 | ) | (8,750,007 | ) | ||||||||||||||||
| Net increase | $ | 482,482 | $ | 8,975,859 | ||||||||||||||||
| Class A | Class B | |||||||||||||||||||
| February 28, | February 28, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Real Estate (Number of Shares) | ||||||||||||||||||||
| Shares sold | 19,878,781 | 4,696,588 | 767,102 | 142,380 | ||||||||||||||||
| Dividends reinvested | 123,340 | 2,698 | 5,012 | 65 | ||||||||||||||||
| Shares redeemed | (5,641,413 | ) | (415,752 | ) | (98,193 | ) | (1,115 | ) | ||||||||||||
| Net increase in shares outstanding | 14,360,708 | 4,283,534 | 673,921 | 141,330 | ||||||||||||||||
| International Real Estate ($) | ||||||||||||||||||||
| Shares sold | $ | 265,384,203 | $ | 50,099,143 | $ | 10,170,413 | $ | 1,531,684 | ||||||||||||
| Dividends reinvested | 1,645,656 | 28,565 | 65,277 | 667 | ||||||||||||||||
| Shares redeemed | (74,585,692 | ) | (4,560,851 | ) | (1,277,012 | ) | (11,288 | ) | ||||||||||||
| Net increase | $ | 192,444,167 | $ | 45,566,857 | $ | 8,958,678 | $ | 1,521,063 | ||||||||||||
| Class C | Class I | |||||||||||||||||||
| February 28, | February 28, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Real Estate (Number of Shares) | ||||||||||||||||||||
| Shares sold | 8,245,988 | 1,486,965 | 6,969,530 | 2,253,191 | ||||||||||||||||
| Dividends reinvested | 30,706 | 697 | 90,632 | 2,409 | ||||||||||||||||
| Shares redeemed | (1,361,519 | ) | (14,206 | ) | (268,863 | ) | (336,086 | ) | ||||||||||||
| Net increase in shares outstanding | 6,915,175 | 1,473,456 | 6,791,299 | 1,919,514 | ||||||||||||||||
| International Real Estate ($) | ||||||||||||||||||||
| Shares sold | $ | 109,483,769 | $ | 15,819,755 | $ | 91,183,483 | $ | 24,710,500 | ||||||||||||
| Dividends reinvested | 401,088 | 7,117 | 1,202,775 | 26,281 | ||||||||||||||||
| Shares redeemed | (17,644,347 | ) | (149,297 | ) | (3,540,845 | ) | (3,870,805 | ) | ||||||||||||
| Net increase | $ | 92,240,510 | $ | 15,677,575 | $ | 88,845,413 | $ | 20,865,976 | ||||||||||||
| (1) | Commencement of operations. |
143
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NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International SmallCap (Number of Shares) | ||||||||||||||||||||
| Shares sold | 5,045,814 | 2,618,183 | 120,228 | 153,065 | ||||||||||||||||
| Dividends reinvested | 20,929 | 28,203 | — | 1,067 | ||||||||||||||||
| Shares redeemed | (2,339,921 | ) | (2,091,324 | ) | (364,409 | ) | (420,654 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | 2,726,822 | 555,062 | (244,181 | ) | (266,522 | ) | ||||||||||||||
| International SmallCap ($) | ||||||||||||||||||||
| Shares sold | $ | 301,848,369 | $ | 115,137,984 | $ | 7,497,411 | $ | 6,805,314 | ||||||||||||
| Dividends reinvested | 1,059,446 | 1,143,069 | — | 44,742 | ||||||||||||||||
| Shares redeemed | (137,896,302 | ) | (91,030,509 | ) | (21,737,439 | ) | (19,055,708 | ) | ||||||||||||
| Net increase (decrease) | $ | 165,011,513 | $ | 25,250,544 | $ | (14,240,028 | ) | $ | (12,205,652 | ) | ||||||||||
| Class C | Class I | |||||||||||||||||||
| December 21, | ||||||||||||||||||||
| Year Ended | Year Ended | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International SmallCap (Number of Shares) | ||||||||||||||||||||
| Shares sold | 517,439 | 305,463 | 3,249,235 | 3,311,088 | ||||||||||||||||
| Dividends reinvested | 53 | 3,317 | 16,186 | — | ||||||||||||||||
| Shares redeemed | (324,780 | ) | (305,228 | ) | (516,468 | ) | (413,715 | ) | ||||||||||||
| Net increase in shares outstanding | 192,712 | 3,552 | 2,748,953 | 2,897,373 | ||||||||||||||||
| International SmallCap ($) | ||||||||||||||||||||
| Shares sold | $ | 29,552,044 | $ | 12,733,141 | $ | 188,727,994 | $ | 146,345,932 | ||||||||||||
| Dividends reinvested | 2,524 | 127,269 | 819,983 | — | ||||||||||||||||
| Shares redeemed | (17,907,434 | ) | (12,614,364 | ) | (32,274,836 | ) | (18,478,631 | ) | ||||||||||||
| Net increase | $ | 11,647,134 | $ | 246,046 | $ | 157,273,141 | $ | 127,867,301 | ||||||||||||
| Class Q | ||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||
| October 31, | October 31, | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
| International SmallCap (Number of Shares) | ||||||||||||||||||||
| Shares sold | 851,771 | 618,175 | ||||||||||||||||||
| Dividends reinvested | 9,277 | 12,988 | ||||||||||||||||||
| Shares redeemed | (648,584 | ) | (434,452 | ) | ||||||||||||||||
| Net increase in shares outstanding | 212,464 | 196,711 | ||||||||||||||||||
| International SmallCap ($) | ||||||||||||||||||||
| Shares sold | $ | 55,349,246 | $ | 28,725,725 | ||||||||||||||||
| Dividends reinvested | 504,137 | 564,597 | ||||||||||||||||||
| Shares redeemed | (41,248,877 | ) | (20,330,336 | ) | ||||||||||||||||
| Net increase | $ | 14,604,506 | $ | 8,959,986 | ||||||||||||||||
| (1) | Commencement of operations. |
144
Table of Contents
NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Value (Number of Shares) | ||||||||||||||||||||
| Shares sold | 16,368,193 | 17,704,351 | 453,105 | 723,662 | ||||||||||||||||
| Dividends reinvested | 7,950,487 | 6,154,438 | 1,377,293 | 1,288,590 | ||||||||||||||||
| Shares redeemed | (24,751,517 | ) | (25,674,523 | ) | (6,016,199 | ) | (7,398,801 | ) | ||||||||||||
| Net decrease in shares outstanding | (432,837 | ) | (1,815,734 | ) | (4,185,801 | ) | (5,386,549 | ) | ||||||||||||
| International Value ($) | ||||||||||||||||||||
| Shares sold | $ | 353,613,593 | $ | 345,076,004 | $ | 9,307,026 | $ | 13,483,084 | ||||||||||||
| Dividends reinvested | 162,571,673 | 110,779,870 | 27,711,130 | 22,846,698 | ||||||||||||||||
| Shares redeemed | (539,661,218 | ) | (504,762,828 | ) | (129,493,665 | ) | (142,311,210 | ) | ||||||||||||
| Net decrease | $ | (23,475,952 | ) | $ | (48,906,954 | ) | $ | (92,475,509 | ) | $ | (105,981,428 | ) | ||||||||
| Class C | Class I | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Value (Number of Shares) | ||||||||||||||||||||
| Shares sold | 834,396 | 696,527 | 27,853,117 | 23,235,247 | ||||||||||||||||
| Dividends reinvested | 2,721,822 | 2,160,993 | 6,124,030 | 4,027,145 | ||||||||||||||||
| Shares redeemed | (4,638,571 | ) | (5,174,229 | ) | (20,350,068 | ) | (13,614,582 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (1,082,353 | ) | (2,316,709 | ) | 13,627,079 | 13,647,810 | ||||||||||||||
International Value ($) | ||||||||||||||||||||
| Shares sold | $ | 16,733,659 | $ | 12,393,004 | $ | 601,984,171 | $ | 456,863,861 | ||||||||||||
| Dividends reinvested | 54,463,672 | 38,163,141 | 125,236,405 | 72,448,346 | ||||||||||||||||
| Shares redeemed | (98,807,462 | ) | (98,746,989 | ) | (447,151,806 | ) | (268,395,382 | ) | ||||||||||||
| Net increase (decrease) | $ | (27,610,131 | ) | $ | (48,190,844 | ) | $ | 280,068,770 | $ | 260,916,825 | ||||||||||
| Class Q | ||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||
| October 31, | October 31, | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
| International Value (Number of Shares) | ||||||||||||||||||||
| Shares sold | 4,986 | 22,383 | ||||||||||||||||||
| Dividends reinvested | 102,040 | 92,721 | ||||||||||||||||||
| Shares redeemed | (190,516 | ) | (415,890 | ) | ||||||||||||||||
| Net decrease in shares outstanding | (83,490 | ) | (300,786 | ) | ||||||||||||||||
International Value ($) | ||||||||||||||||||||
| Shares sold | $ | 110,000 | $ | 432,031 | ||||||||||||||||
| Dividends reinvested | 2,089,785 | 1,670,826 | ||||||||||||||||||
| Shares redeemed | (4,143,124 | ) | (8,027,999 | ) | ||||||||||||||||
| Net decrease | $ | (1,943,339 | ) | $ | (5,925,142 | ) | ||||||||||||||
145
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NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | |||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Value Choice (Number of Shares) | ||||||||||||||||||||
| Shares sold | 196,008 | 1,260,518 | 40,254 | 204,077 | ||||||||||||||||
| Dividends reinvested | 26,003 | 9,873 | 3,151 | 2,909 | ||||||||||||||||
| Shares redeemed | (553,686 | ) | (394,876 | ) | (74,651 | ) | (50,448 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (331,675 | ) | 875,515 | (31,246 | ) | 156,538 | ||||||||||||||
International Value Choice ($) | ||||||||||||||||||||
| Shares sold | $ | 2,591,527 | $ | 14,712,291 | $ | 523,398 | $ | 2,359,933 | ||||||||||||
| Dividends reinvested | 334,923 | 109,590 | 40,274 | 32,117 | ||||||||||||||||
| Shares redeemed | (7,400,948 | ) | (4,737,083 | ) | (971,726 | ) | (590,545 | ) | ||||||||||||
| Net increase (decrease) | $ | (4,474,498 | ) | $ | 10,084,798 | $ | (408,054 | ) | $ | 1,801,505 | ||||||||||
| Class C | Class I | |||||||||||||||||||
| December 21, | ||||||||||||||||||||
| Year Ended | Year Ended | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| International Value Choice (Number of Shares) | ||||||||||||||||||||
| Shares sold | 85,318 | 216,216 | 4,387,177 | 3,307,214 | ||||||||||||||||
| Dividends reinvested | 4,177 | 3,130 | 76,908 | — | ||||||||||||||||
| Shares redeemed | (94,956 | ) | (47,102 | ) | (3,383,938 | ) | (337,472 | ) | ||||||||||||
| Net increase (decrease) in shares outstanding | (5,461 | ) | 172,244 | 1,080,147 | 2,969,742 | |||||||||||||||
International Value Choice ($) | ||||||||||||||||||||
| Shares sold | $ | 1,113,930 | $ | 2,519,790 | $ | 57,856,995 | $ | 39,229,047 | ||||||||||||
| Dividends reinvested | 53,511 | 34,613 | 989,038 | — | ||||||||||||||||
| Shares redeemed | (1,252,071 | ) | (550,017 | ) | (46,416,954 | ) | (4,156,509 | ) | ||||||||||||
| Net increase (decrease) | $ | (84,630 | ) | $ | 2,004,386 | $ | 12,429,079 | $ | 35,072,538 | |||||||||||
| Class A | Class B | Class C | Class I | |||||||||||||||||
| February 28, | February 28, | February 28, | February 28, | |||||||||||||||||
| 2007(1) to | 2007(1) to | 2007(1) to | 2007(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2007 | 2007 | 2007 | |||||||||||||||||
| International Value Opportunities (Number of Shares) | ||||||||||||||||||||
| Shares sold | 1,004,583 | 1,280 | 2,699 | 103 | ||||||||||||||||
| Shares redeemed | (1,889 | ) | (1,085 | ) | (2 | ) | (1 | ) | ||||||||||||
| Net increase in shares outstanding | 1,002,694 | 195 | 2,697 | 102 | ||||||||||||||||
International Value Opportunities ($) | ||||||||||||||||||||
| Shares sold | $ | 10,048,363 | $ | 13,195 | $ | 27,547 | $ | 1,030 | ||||||||||||
| Shares redeemed | (18,645 | ) | (11,002 | ) | (21 | ) | (10 | ) | ||||||||||||
| Net increase | $ | 10,029,718 | $ | 2,193 | $ | 27,526 | $ | 1,020 | ||||||||||||
| (1) | Commencement of operations. |
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NOTE 11 — CAPITAL SHARES (continued)
| Class A | ||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||
| October 31, | October 31, | |||||||||||||||||||
| 2007 | 2006 | |||||||||||||||||||
| Russia (Number of Shares) | ||||||||||||||||||||
| Shares sold | 4,435,492 | 10,885,015 | ||||||||||||||||||
| Dividends reinvested | 613,999 | — | ||||||||||||||||||
| Shares redeemed | (6,715,298 | ) | (5,521,528 | ) | ||||||||||||||||
| Net increase (decrease) in shares outstanding | (1,665,807 | ) | 5,363,487 | |||||||||||||||||
Russia ($) | ||||||||||||||||||||
| Shares sold | $ | 280,987,914 | $ | 528,911,241 | ||||||||||||||||
| Dividends reinvested | 37,402,991 | — | ||||||||||||||||||
| Redemption fee proceeds | 3,086,432 | 2,984,157 | ||||||||||||||||||
| Shares redeemed | (422,755,301 | ) | (268,475,876 | ) | ||||||||||||||||
| Net increase (decrease) | $ | (101,277,964 | ) | $ | 263,419,522 | |||||||||||||||
| Class A | Class B | |||||||||||||||||||
| December 21, | January 4, | |||||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Emerging Markets Fixed Income (Number of Shares) | ||||||||||||||||||||
| Shares sold | 574,996 | 2,546,831 | 12,563 | 28,060 | ||||||||||||||||
| Dividends reinvested | 17,007 | 1,763 | 1,367 | 356 | ||||||||||||||||
| Shares redeemed | (2,107,447 | ) | (18,897 | ) | (3,405 | ) | 34 | |||||||||||||
| Net increase (decrease) in shares outstanding | (1,515,444 | ) | 2,529,697 | 10,525 | 28,450 | |||||||||||||||
Emerging Markets Fixed Income ($) | ||||||||||||||||||||
| Shares sold | $ | 5,985,060 | $ | 25,848,505 | $ | 129,139 | $ | 284,262 | ||||||||||||
| Dividends reinvested | 174,982 | 17,545 | 14,047 | 3,546 | ||||||||||||||||
| Shares redeemed | (21,814,799 | ) | (190,292 | ) | (34,681 | ) | 349 | |||||||||||||
| Net increase (decrease) | $ | (15,654,757 | ) | $ | 25,675,758 | $ | 108,505 | $ | 288,157 | |||||||||||
| Class C | Class I | |||||||||||||||||||
| March 1, | December 20, | |||||||||||||||||||
| Year Ended | 2006(1) to | 2006(1) to | ||||||||||||||||||
| October 31, | October 31, | October 31, | ||||||||||||||||||
| 2007 | 2006 | 2007 | ||||||||||||||||||
| Emerging Markets Fixed Income (Number of Shares) | ||||||||||||||||||||
| Shares sold | 121,704 | 32,643 | 29,241,272 | |||||||||||||||||
| Dividends reinvested | 2,892 | 792 | 617,893 | |||||||||||||||||
| Shares redeemed | (6,959 | ) | — | (601,326 | ) | |||||||||||||||
| Net increase in shares outstanding | 117,637 | 33,435 | 29,257,839 | |||||||||||||||||
Emerging Markets Fixed Income ($) | ||||||||||||||||||||
| Shares sold | $ | 1,261,502 | $ | 329,390 | $ | 303,520,569 | ||||||||||||||
| Dividends reinvested | 29,610 | 7,863 | 6,243,231 | |||||||||||||||||
| Shares redeemed | (71,700 | ) | — | (6,041,783 | ) | |||||||||||||||
| Net increase | $ | 1,219,412 | $ | 337,253 | $ | 303,722,017 | ||||||||||||||
| (1) | Commencement of operations. |
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NOTE 11 — CAPITAL SHARES (continued)
| Class A | Class B | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Global Bond (Number of Shares) | ||||||||||||||||||||
| Shares sold | 274,870 | 2,515,893 | 33,601 | 2,713 | ||||||||||||||||
| Dividends reinvested | 3,007 | — | 658 | — | ||||||||||||||||
| Shares redeemed | (66,579 | ) | — | (4,564 | ) | — | ||||||||||||||
| Net increase in shares outstanding | 211,298 | 2,515,893 | 29,695 | 2,713 | ||||||||||||||||
| Global Bond ($) | ||||||||||||||||||||
| Shares sold | $ | 2,826,384 | $ | 25,161,326 | $ | 339,806 | $ | 27,335 | ||||||||||||
| Dividends reinvested | 30,842 | — | 6,727 | — | ||||||||||||||||
| Shares redeemed | (676,036 | ) | — | (45,456 | ) | — | ||||||||||||||
| Net increase | $ | 2,181,190 | $ | 25,161,326 | $ | 301,077 | $ | 27,335 | ||||||||||||
| Class C | Class I | |||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||
| Year Ended | 2006(1) to | Year Ended | 2006(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Global Bond (Number of Shares) | ||||||||||||||||||||
| Shares sold | 160,111 | 3,467 | 1 | 101 | ||||||||||||||||
| Dividends reinvested | 673 | — | — | — | ||||||||||||||||
| Shares redeemed | (10,660 | ) | — | — | — | |||||||||||||||
| Net increase in shares outstanding | 150,124 | 3,467 | 1 | 101 | ||||||||||||||||
Global Bond ($) | ||||||||||||||||||||
| Shares sold | $ | 1,646,890 | $ | 35,076 | $ | 10 | $ | 1,010 | ||||||||||||
| Dividends reinvested | 6,965 | — | — | — | ||||||||||||||||
| Shares redeemed | (108,978 | ) | — | — | — | |||||||||||||||
| Net increase | $ | 1,544,877 | $ | 35,076 | $ | 10 | $ | 1,010 | ||||||||||||
| Class A | Class B | |||||||||||||||||||
| December 21, | December 21, | |||||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
Diversified International (Number of Shares) | ||||||||||||||||||||
| Shares sold | 14,796,567 | 15,920,455 | 1,227,737 | 2,066,270 | ||||||||||||||||
| Dividends reinvested | 58,638 | — | 1,114 | — | ||||||||||||||||
| Shares redeemed | (3,910,709 | ) | (1,271,043 | ) | (282,859 | ) | (70,627 | ) | ||||||||||||
| Net increase in shares outstanding | 10,944,496 | 14,649,412 | 945,992 | 1,995,643 | ||||||||||||||||
Diversified International ($) | ||||||||||||||||||||
| Shares sold | $ | 196,674,148 | $ | 173,676,549 | $ | 16,173,010 | $ | 22,435,250 | ||||||||||||
| Dividends reinvested | 727,447 | — | 13,771 | — | ||||||||||||||||
| Shares redeemed | (51,884,948 | ) | (13,776,784 | ) | (3,741,472 | ) | (779,687 | ) | ||||||||||||
| Net increase | $ | 145,516,647 | $ | 159,899,765 | $ | 12,445,309 | $ | 21,655,563 | ||||||||||||
| (1) | Commencement of operations. |
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NOTE 11 — CAPITAL SHARES (continued)
| Class C | Class I | |||||||||||||||||||
| December 21, | December 21, | |||||||||||||||||||
| Year Ended | 2005(1) to | Year Ended | 2005(1) to | |||||||||||||||||
| October 31, | October 31, | October 31, | October 31, | |||||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||||
| Diversified International (Number of Shares) | ||||||||||||||||||||
| Shares sold | 6,505,341 | 6,338,569 | 36,440 | 486 | ||||||||||||||||
| Dividends reinvested | 4,093 | — | 4 | — | ||||||||||||||||
| Shares redeemed | (1,190,161 | ) | (287,804 | ) | (34,712 | ) | (100 | ) | ||||||||||||
| Net increase in shares outstanding | 5,319,273 | 6,050,765 | 1,732 | 386 | ||||||||||||||||
Diversified International ($) | ||||||||||||||||||||
| Shares sold | $ | 85,984,708 | $ | 68,740,074 | $ | 522,197 | $ | 5,534 | ||||||||||||
| Dividends reinvested | 50,585 | — | 55 | — | ||||||||||||||||
| Shares redeemed | (15,544,550 | ) | (3,120,028 | ) | (476,693 | ) | (1,163 | ) | ||||||||||||
| Net increase | $ | 70,490,743 | $ | 65,620,046 | $ | 45,559 | $ | 4,371 | ||||||||||||
| Class R | ||||||||||||||||||||
| December 12, | ||||||||||||||||||||
| 2006(1) to | ||||||||||||||||||||
| October 31, | ||||||||||||||||||||
| 2007 | ||||||||||||||||||||
| Diversified International (Number of Shares) | ||||||||||||||||||||
| Shares sold | 39,818 | |||||||||||||||||||
| Dividends reinvested | 38 | |||||||||||||||||||
| Shares redeemed | (10,702 | ) | ||||||||||||||||||
| Net increase in shares outstanding | 29,154 | |||||||||||||||||||
Diversified International ($) | ||||||||||||||||||||
| Shares sold | $ | 502,116 | ||||||||||||||||||
| Dividends reinvested | 472 | |||||||||||||||||||
| Shares redeemed | (144,253 | ) | ||||||||||||||||||
| Net increase | $ | 358,335 | ||||||||||||||||||
| (1) | Commencement of operations. |
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NOTE 12 — ILLIQUID SECURITIES
Pursuant to guidelines adopted by the Funds’ Board, the following securities have been deemed to be illiquid. The Funds currently limit investments in illiquid securities to 15% of a Fund’s net assets, at market value, at time of purchase.
| Initial | Percent | |||||||||||||||||||||||
| Shares | Acquisition | of Net | ||||||||||||||||||||||
| Fund | Security | /Principal | Date | Cost | Value | Assets | ||||||||||||||||||
| Global Natural Resources | Cano Petroleum, Inc. | 107,047 | 10/11/06 | $ | 559,583 | $ | 818,910 | 0.5 | % | |||||||||||||||
| PetroHawk Energy Corp. | 40,042 | 10/10/06 | 478,705 | 740,777 | 0.5 | % | ||||||||||||||||||
| Solid Resources Ltd. | 293,709 | 03/19/07 | 249,403 | 310,918 | 0.2 | % | ||||||||||||||||||
| Triangle Petroleum Corp. | 38,800 | 02/26/07 | 77,600 | 50,828 | 0.0 | % | ||||||||||||||||||
| $ | 1,365,291 | $ | 1,921,433 | 1.2 | % | |||||||||||||||||||
| Foreign | OJSC Evrocement Group | 13 | 01/29/07 | $ | 146,250 | $ | 240,500 | 0.0 | % | |||||||||||||||
| Open Investments | 1,536 | 04/26/07 | 452,136 | 425,764 | 0.1 | % | ||||||||||||||||||
| Silvinit | 3,130 | 05/10/07 | 1,088,674 | 1,244,175 | 0.2 | % | ||||||||||||||||||
| URSA Bank | 378,180 | 04/11/07 | 889,462 | 699,633 | 0.1 | % | ||||||||||||||||||
| $ | 2,576,522 | $ | 2,610,072 | 0.4 | % | |||||||||||||||||||
| International SmallCap | Dongyang Mechatronics Corp. | 143,450 | 03/02/05 | $ | 676,529 | $ | 1,735,564 | 0.2 | % | |||||||||||||||
| HannStar Display Corp. | 2,729,088 | 03/27/07 | 615,569 | 1,272,114 | 0.1 | % | ||||||||||||||||||
| MFS Technology Ltd. | 40,000 | 01/25/07 | 20,236 | 15,826 | 0.0 | % | ||||||||||||||||||
| Nadex Co., Ltd. | 4,000 | 01/04/06 | 56,144 | 25,054 | 0.0 | % | ||||||||||||||||||
| Shinki Co., Ltd. | 24,700 | 09/28/05 | 251,493 | 23,573 | 0.0 | % | ||||||||||||||||||
| $ | 1,619,971 | $ | 3,072,131 | 0.3 | % | |||||||||||||||||||
| Emerging Markets Fixed Income | Banco Credito Del Peru, 7.170%, due 10/15/22 | PEN 3,900,000 | 10/19/07 | $ | 1,291,391 | $ | 1,299,762 | 0.4 | % | |||||||||||||||
| $ | 1,291,391 | $ | 1,299,762 | 0.4 | % | |||||||||||||||||||
NOTE 13 — CONCENTRATION OF RISKS
Foreign Securities (All Funds). Investments in foreign securities may entail risks not present in domestic investments. Since securities in which the Funds and Underlying Funds may invest are denominated in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds and Underlying Funds. Foreign investments may also subject the Funds and Underlying Funds to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, as well as changes vis-a-vis the U.S. dollar from movements in currency, and changes in security value and interest rate, all of which could affect the market and/or credit risk of the Funds’ and Underlying Funds’ investments.
Emerging Markets Investments (All Funds except Index Plus International Equity). Because of less developed markets and economies and, in some countries, less mature governments and governmental institutions, the risks of investing in foreign securities can be intensified in the case of investments in issuers domiciled or doing substantial business in emerging market countries.
Industry Concentration (Global Natural Resources, Global Real Estate and International Real Estate). As a result of each Fund and Underlying Funds concentrating its assets in securities related to a particular industry, each Fund or Underlying Fund may be subject to greater market fluctuation than a fund that invests in securities representing a broader range of investment alternatives.
Geographic Concentration (Greater China and Russia). As a result of each Fund concentrating its assets in a single region of the world, each Fund’s performance may be more volatile than that of a fund that invests globally. If securities in the region that each Fund is concentrated fall out of favor, it may cause a Fund to underperform in relation to funds that focus on other types of stocks.
Non-Diversified (Global Natural Resources, Global Real Estate, Disciplined International SmallCap, Greater China, International Real Estate, Russia, Emerging Markets Fixed Income and Global Bond). The Funds and Underlying Funds are each classified as non-diversified investment companies under the 1940 Act, which means that each Fund or Underlying Fund is not limited by the 1940 Act in the proportion of assets that they may invest in the obligations of a single issuer. Declines in the value of that single company can significantly impact the value of a Fund
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or Underlying Fund. The investment of a large percentage of a Funds’ or Underlying Fund’s assets in the securities of a small number of issuers may cause a Fund’s share price to fluctuate more than that of a diversified investment company. Conversely, even though classified as non-diversified, a Fund or Underlying Fund may actually maintain a portfolio that is diversified with a large number of issuers. In such an event, a Fund or Underlying Fund would benefit less from appreciation in a single corporate issuer than if it had greater exposure to that issuer.
Restricted and Illiquid Securities (Greater China, Russia and Emerging Markets Fixed Income). If a security is illiquid, a Fund may not be able to sell the security at a time when the Investment Adviser or a Sub-Adviser might wish to sell, and the security could have the effect of decreasing the overall level of a Fund’s liquidity. Further, the lack of an established secondary market may make it more difficult to value illiquid securities, which could vary from the amount a Fund could realize upon disposition. Restricted securities, i.e., securities subject to legal or contractual restrictions on resale, may be illiquid. However, some restricted securities may be treated as liquid, although they may be less liquid than registered securities traded on established secondary markets.
Rule 144A Securities (Global Value Choice, Greater China and International Value Choice). Rule 144A securities are securities that are not registered, but which are bought and sold solely by institutional investors. The Fund generally considers Rule 144A securities to be “liquid” although the market for such securities typically is less active than public securities markets and may lead to less ability to sell these securities.
NOTE 14 — SECURITIES LENDING
Under an agreement with BNY, the Funds can lend their securities to approved brokers, dealers and other financial institutions. Loans are collateralized by cash and U.S. government securities. The collateral must be in an amount equal to at least 105% of the market value of non-U.S. securities loaned and 102% of the market value of U.S. securities loaned. The cash collateral received is invested in approved investments as defined in the Securities Lending Agreement with BNY (the “Agreement”). The securities purchased with cash collateral received are reflected in the Portfolio of Investments. Generally, in the event of counterparty default, the Funds have the right to use the collateral to offset losses incurred. The Agreement contains certain guarantees by BNY in the event of counterparty default and/or a borrower’s failure to return a loaned security, however there would be a potential loss to the Funds in the event the Funds are delayed or prevented from exercising their right to dispose of the collateral. The Funds bear the risk of loss with respect to the investment of collateral. Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other risks associated with investing in a Fund. At October 31, 2007, the following Funds had securities on loan with the following market values:
| Value of | ||||||||
| Securities | Value of | |||||||
| Fund | Loaned | Collateral | ||||||
| Global Equity Dividend | $ | 12,887,840 | $ | 13,121,697 | ||||
| Global Real Estate | 33,126,917 | 34,107,610 | ||||||
| Global Value Choice | 24,078,683 | 24,568,922 | ||||||
| Emerging Countries | 49,050,425 | 50,315,176 | ||||||
| Foreign | 42,179,200 | 42,530,983 | ||||||
| International Growth Opportunities | 7,191,354 | 7,242,040 | ||||||
| International SmallCap | 33,222,926 | 34,544,733 | ||||||
| International Value | 176,481,982 | 186,972,678 | ||||||
| Russia Fund | 112,622,319 | 113,588,003 | ||||||
NOTE 15 — 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 distributions of paid-in capital.
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NOTE 15 — FEDERAL INCOME TAXES (continued)
The following permanent tax differences have been reclassified as of October 31, 2007:
| Undistributed Net | Accumulated | |||||||||||
| Paid-in | Investment Income | Net Realized | ||||||||||
| Capital | On Investments | Gains/(Losses) | ||||||||||
| Global Equity Dividend | $ | — | $ | 1,987,562 | $ | (1,987,562 | ) | |||||
| Global Natural Resources | — | 915,873 | (915,873 | ) | ||||||||
Global Real Estate(1) | 1,014,610 | 33,309,068 | (34,323,678 | ) | ||||||||
| Global Value Choice | — | 683,392 | (683,392 | ) | ||||||||
| Disciplined International SmallCap | (71,517 | ) | 232,372 | (160,855 | ) | |||||||
| Emerging Countries | — | (404,375 | ) | 404,375 | ||||||||
| Foreign | (91 | ) | 3,492,238 | (3,492,147 | ) | |||||||
| Greater China | — | (8,217 | ) | 8,217 | ||||||||
| Index Plus International Equity | — | 410,451 | (410,451 | ) | ||||||||
| International Capital Appreciation | — | 1,329,512 | (1,329,512 | ) | ||||||||
| International Equity Dividend | (6,361 | ) | 120,413 | (114,052 | ) | |||||||
| International Growth Opportunities | — | 5,468 | (5,468 | ) | ||||||||
| International Real Estate | — | 19,074,816 | (19,074,816 | ) | ||||||||
| International SmallCap | — | 53,531 | (53,531 | ) | ||||||||
| International Value | — | (1,151,612 | ) | 1,151,612 | ||||||||
| International Value Choice | — | (68,120 | ) | 68,120 | ||||||||
| International Value Opportunities | (15,611 | ) | 26,786 | (11,175 | ) | |||||||
| Russia | (123,868 | ) | 4,511,889 | (4,388,021 | ) | |||||||
| Emerging Markets Fixed Income | (33,369 | ) | (13,138 | ) | 46,507 | |||||||
| Global Bond | — | 347,206 | (347,206 | ) | ||||||||
| Diversified International | 19,330 | 4,155,585 | (4,174,915 | ) | ||||||||
| (1) | As of the Fund’s tax year ended December 31, 2006. |
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, 2007 | Year Ended October 31, 2006 | |||||||||||||||||||
| Dividends Paid | ||||||||||||||||||||
| Ordinary | Long-Term | Deduction on | Ordinary | Long-Term | ||||||||||||||||
| Income | Capital Gains | Redemptions | Income | Capital Gains | ||||||||||||||||
| Global Equity Dividend | $ | 18,796,716 | $ | 3,818,557 | $ | — | $ | 7,159,143 | $ | 828,141 | ||||||||||
| Global Natural Resources | 2,937,873 | 3,999,909 | — | 180,375 | — | |||||||||||||||
Global Real Estate(1) | 51,930,847 | 8,533,607 | — | 14,209,504 | 4,790,208 | |||||||||||||||
| Global Value Choice | — | — | — | 397,470 | — | |||||||||||||||
| Emerging Countries | 2,943,119 | — | — | 671,817 | — | |||||||||||||||
| Foreign | 5,017,181 | 12,877,280 | — | — | 6,096,805 | |||||||||||||||
| Greater China | 143,130 | — | — | — | — | |||||||||||||||
| Index Plus International Equity | 3,219,136 | — | — | — | — | |||||||||||||||
| International Capital Appreciation | 1,644,836 | — | — | — | — | |||||||||||||||
| International Growth Opportunities | 3,156,568 | 9,769,639 | — | 1,814,101 | — | |||||||||||||||
| International Real Estate | 5,257,673 | — | — | 176,469 | — | |||||||||||||||
| International SmallCap | 3,451,506 | — | — | 2,373,750 | — | |||||||||||||||
| International Value | 122,228,627 | 402,826,028 | — | 49,299,049 | 295,092,915 | |||||||||||||||
| International Value Choice | 1,154,606 | 379,371 | — | 269,623 | — | |||||||||||||||
| Russia | — | 43,574,710 | 139 | — | — | |||||||||||||||
| Emerging Markets Fixed Income | 7,701,124 | — | — | 601,241 | — | |||||||||||||||
| Global Bond | 1,570,829 | 8,117 | — | 154,991 | — | |||||||||||||||
| Diversified International | 1,063,277 | — | 19,330 | — | — | |||||||||||||||
| (1) | Composition of dividends and distributions presented herein is based on the Fund’s tax year-end of December 31, 2006. |
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The tax-basis components of distributable earnings and the expiration dates of the capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of October 31, 2007 were:
| Post-October | ||||||||||||||||||||||||
| Undistributed | Undistributed | Unrealized | Currency | |||||||||||||||||||||
| Ordinary | Long Term | Appreciation/ | Losses | Capital Loss | Expiration | |||||||||||||||||||
| Income | Capital Gains | (Depreciation) | Deferred | Carryforwards | Dates | |||||||||||||||||||
| Global Equity Dividend | $ | 8,910,172 | $ | 20,212,116 | $ | 29,314,208 | $ | — | $ | — | — | |||||||||||||
| Global Natural Resources | 19,813,418 | 7,608,261 | 30,452,308 | — | — | — | ||||||||||||||||||
Global Real Estate(1) | 18,943,194 | 1,254,042 | 163,390,908 | (203,868 | ) | — | — | |||||||||||||||||
| Global Value Choice | 397,014 | — | 18,664,718 | — | (67,176,271 | ) | 2009 | |||||||||||||||||
| (81,779,077 | ) | 2010 | ||||||||||||||||||||||
| (6,183,953 | ) | 2011 | ||||||||||||||||||||||
| $ | (155,139,301 | ) | ||||||||||||||||||||||
| Disciplined International SmallCap | 10,387,969 | — | 17,136,239 | — | — | — | ||||||||||||||||||
| Emerging Countries | 3,092,433 | 8,984,526 | 57,601,834 | — | (3,321,810 | )* | 2008 | |||||||||||||||||
| Foreign | 4,110,078 | 39,829,512 | 209,255,862 | — | — | — | ||||||||||||||||||
| Greater China | 6,797,514 | 1,424,320 | 32,978,404 | — | — | — | ||||||||||||||||||
| Index Plus International Equity | 11,776,394 | 2,716,188 | 13,018,816 | — | — | — | ||||||||||||||||||
| International Capital Appreciation | 5,727,180 | 1,233,537 | 26,048,539 | — | — | — | ||||||||||||||||||
| International Equity Dividend | 553,428 | — | 3,206,366 | — | — | — | ||||||||||||||||||
| International Growth Opportunities | 10,460,955 | 10,794,409 | 25,331,782 | — | (1,838,679 | )* | 2008 | |||||||||||||||||
| International Real Estate | 18,778,690 | — | 49,465,611 | — | (26,312 | ) | 2014 | |||||||||||||||||
| (2,515,843 | ) | 2015 | ||||||||||||||||||||||
| $ | (2,542,155 | ) | ||||||||||||||||||||||
| International SmallCap | 78,354,785 | 66,294,175 | 209,962,864 | — | — | — | ||||||||||||||||||
| International Value | 169,333,918 | 657,964,463 | 1,217,966,130 | — | — | — | ||||||||||||||||||
| International Value Choice | 4,878,165 | 7,696,698 | 7,917,237 | — | — | — | ||||||||||||||||||
| International Value Opportunities | 248,964 | — | 408,770 | — | — | — | ||||||||||||||||||
| Russia | — | 137,645,235 | 448,582,297 | — | — | — | ||||||||||||||||||
| Emerging Markets Fixed Income | — | — | 601,729 | — | (593,649 | ) | 2015 | |||||||||||||||||
| Global Bond | 465,305 | — | 1,228,620 | — | — | — | ||||||||||||||||||
| Diversified International | 5,267,267 | 1,925,350 | 113,649,018 | — | — | — | ||||||||||||||||||
| * | Utilization of these capital losses is subject to annual limitations under Section 382 of the Internal Revenue Code. |
| (1) | As of the Fund’s tax year ended December 31, 2006. |
NOTE 16 — OTHER ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes.” This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained upon challenge by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 was effective for fiscal years beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. However, acknowledging the unique issues that FIN 48 presents for investment companies that calculate NAVs, the SEC has indicated that they would not object if a fund implements FIN 48 in its NAV calculation as late as its last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. For October year-end funds, this would be no later than their April 30, 2008 NAV and the effects of FIN 48 would be reflected in the Funds’ semi-annual financial statements contained in their Form N-CSR filing. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more likely-than-not to be sustained as of the adoption date. Management of the Funds has assessed the impact of adopting FIN 48 and currently does not believe that there will be a material impact to the Funds.
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On September 15, 2006, the FASB issued Statement of Financial Accounting Standards No. 157 (“SFAS No. 157”), “Fair Value Measurements.” The new accounting statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurements. SFAS No. 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). SFAS No. 157 also stipulates that, as a market-based measurement, fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability, and establishes a fair value hierarchy that distinguishes between (a) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (b) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. As of October 31, 2007, management of the Funds is currently assessing the impact, if any, that will result from adopting SFAS No. 157.
NOTE 17 — SUBSEQUENT EVENTS
On July 24, 2007, the Board approved a proposal to reorganize ING International Equity Fund into Index Plus International Equity (“Reorganization��). The Reorganization was approved by shareholders on November 21, 2007 and took place on December 8, 2007. As a result of the Reorganization, Index Plus International Equity launched Class O shares on December 10, 2007.
Dividends. Subsequent to October 31, 2007, the following Funds declared dividends of:
| Net | |||||||||||||
| Investment | Payable | Record | |||||||||||
| Income | Date | Date | |||||||||||
Emerging Markets Fixed Income | |||||||||||||
| Class A | $ | 0.0500 | November 5, 2007 | October 31, 2007 | |||||||||
| Class B | $ | 0.0435 | November 5, 2007 | October 31, 2007 | |||||||||
| Class C | $ | 0.0438 | November 5, 2007 | October 31, 2007 | |||||||||
| Class I | $ | 0.0522 | November 5, 2007 | October 31, 2007 | |||||||||
| Class A | $ | 0.0500 | December 5, 2007 | November 30, 2007 | |||||||||
| Class B | $ | 0.0438 | December 5, 2007 | November 30, 2007 | |||||||||
| Class C | $ | 0.0439 | December 5, 2007 | November 30, 2007 | |||||||||
| Class I | $ | 0.0522 | December 5, 2007 | November 30, 2007 | |||||||||
Global Bond | |||||||||||||
| Class A | $ | 0.0709 | December 3, 2007 | Daily | |||||||||
| Class B | $ | 0.0586 | December 3, 2007 | Daily | |||||||||
| Class C | $ | 0.0631 | December 3, 2007 | Daily | |||||||||
| Class I | $ | 0.0594 | December 3, 2007 | Daily | |||||||||
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 Investments, the adviser to the ING Funds, has reported to the Boards of Directors/ Trustees (the “Boards”) of the ING Funds that, like many U.S. financial services companies, ING Investments and certain of its U.S. affiliates have received informal and formal requests for information since September 2003 from various governmental and self-regulatory agencies in connection with investigations related to mutual funds and variable insurance products. ING Investments has advised the Boards that it and its affiliates have cooperated fully with each request.
In addition to responding to regulatory and governmental requests, ING Investments reported that management of U.S. affiliates of ING Groep N.V., including ING Investments (collectively, “ING”), on their own initiative, have conducted, through independent special counsel and a national accounting firm, an extensive internal review of trading in ING insurance, retirement, and mutual fund products. The goal of this review was to identify any instances of inappropriate trading in those products by third parties or by ING investment professionals and other ING personnel. ING’s internal review related to mutual fund trading is now substantially completed. ING has reported that, of the millions of customer relationships that ING maintains, the internal review identified several isolated arrangements allowing third parties to engage in frequent trading of mutual funds within ING’s variable insurance and mutual fund products, and
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identified other circumstances where frequent trading occurred, despite measures taken by ING intended to combat market timing. ING further reported that each of these arrangements has been terminated and fully disclosed to regulators. The results of the internal review were also reported to the independent members of the Boards.
ING Investments has advised the Boards that most of the identified arrangements were initiated prior to ING’s acquisition of the businesses in question in the U.S. ING Investments further reported that the companies in question did not receive special benefits in return for any of these arrangements, which have all been terminated.
Based on the internal review, ING Investments has advised the Boards that the identified arrangements do not represent a systemic problem in any of the companies that were involved.
Despite the extensive internal review conducted through independent special counsel and a national accounting firm, there can be no assurance that the instances of inappropriate trading reported to the Boards are the only instances of such trading respecting the ING Funds.
ING Investments reported to the Boards that ING is committed to conducting its business with the highest standards of ethical conduct with zero tolerance for noncompliance. Accordingly, ING Investments advised the Boards that ING management was disappointed that its voluntary internal review identified these situations. Viewed in the context of the breadth and magnitude of its U.S. business as a whole, ING management does not believe that ING’s acquired companies had systemic ethical or compliance issues in these areas. Nonetheless, ING Investments reported that given ING’s refusal to tolerate any lapses, it has taken the steps noted below, and will continue to seek opportunities to further strengthen the internal controls of its affiliates.
| • | ING has agreed with the ING Funds to indemnify and hold harmless the ING Funds from all damages resulting from wrongful conduct by ING or its employees or from ING’s internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the SEC. ING Investments reported to the Boards that ING management believes that the total amount of any indemnification obligations will not be material to ING or its U.S. business. |
| • | ING updated its Code of Conduct for employees reinforcing its employees’ obligation to conduct personal trading activity consistent with the law, disclosed limits, and other requirements. |
Other Regulatory Matters
The New York Attorney General and other federal and state regulators are also conducting broad inquiries and investigations involving the insurance industry. These initiatives currently focus on, among other things, compensation and other sales incentives; potential conflicts of interest; potential anti-competitive activity; reinsurance; marketing practices (including suitability); specific product types (including group annuities and indexed annuities); fund selection for investment products and brokerage sales; and disclosure. It is likely that the scope of these industry investigations will further broaden before they conclude. ING has received formal and informal requests in connection with such investigations, and is cooperating fully with each request. In connection with one such investigation, affiliates of ING Investments were named in a petition for relief and cease and desist order filed by the New Hampshire Bureau of Securities Regulation concerning their administration of the New Hampshire state employees deferred compensation plan.
Other federal and state regulators could initiate similar actions in this or other areas of ING’s businesses. These regulatory initiatives may result in new legislation and regulation that could significantly affect the financial services industry, including businesses in which ING is engaged. In light of these and other developments, ING continuously reviews whether modifications to its business practices are appropriate. At this time, in light of the current regulatory factors, ING U.S. is actively engaged in reviewing whether any modifications in our practices are appropriate for the future.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased fund redemptions, reduced sale of fund shares, or other adverse consequences to ING Funds.
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| Shares | Value | |||||||||
| COMMON STOCK: 92.7% | ||||||||||
| Australia: 8.5% | ||||||||||
| 146,795 | Australia & New Zealand Banking Group Ltd. | $ | 4,144,348 | |||||||
| 246,016 | Coca-Cola Amatil Ltd. | 2,351,129 | ||||||||
| 671,697 | Foster’s Group Ltd. | 4,010,541 | ||||||||
| 847,648 | Insurance Australia Group | 3,728,719 | ||||||||
| 163,788 | Publishing & Broadcasting Ltd. | 3,197,251 | ||||||||
| 250,463 | Stockland | 2,103,988 | ||||||||
| 161,325 | Suncorp-Metway Ltd. | 3,065,001 | ||||||||
| 143,006 | TABCORP Holdings Ltd. | 2,081,051 | ||||||||
| 105,077 | Wesfarmers Ltd. | 4,323,787 | ||||||||
| 206,676 | Westfield Group | 4,225,887 | ||||||||
| 33,231,702 | ||||||||||
| Belgium: 2.8% | ||||||||||
| 86,629 | Belgacom SA | 4,151,343 | ||||||||
| 48,947 | Elia System Operator SA | 2,029,953 | ||||||||
| 154,540 | Fortis | 4,963,083 | ||||||||
| 61,816 | @ | Fortis | 895 | |||||||
| 11,145,274 | ||||||||||
| Brazil: 2.2% | ||||||||||
| 58,785 | Petroleo Brasileiro SA ADR | 4,890,324 | ||||||||
| 169,225 | Tele Norte Leste Participacoes SA ADR | 3,689,105 | ||||||||
| 8,579,429 | ||||||||||
| Canada: 4.4% | ||||||||||
| 7,854 | @,#,X | Bell Aliant Regional Communications Income Fund | 261,469 | |||||||
| 61,168 | Bell Aliant Regional Communications Income Fund | 2,047,459 | ||||||||
| 49,580 | Enerplus Resources Fund | 2,398,680 | ||||||||
| 61,553 | L | Fording Canadian Coal Trust | 2,241,760 | |||||||
| 266,726 | Precision Drilling Trust | 4,862,141 | ||||||||
| 128,246 | TransCanada Corp. | 5,454,850 | ||||||||
| 17,266,359 | ||||||||||
| Denmark: 1.0% | ||||||||||
| 93,131 | Danske Bank A/ S | 4,122,118 | ||||||||
| 4,122,118 | ||||||||||
| France: 5.7% | ||||||||||
| 34,342 | BNP Paribas | 3,806,173 | ||||||||
| 119,004 | France Telecom SA | 4,400,771 | ||||||||
| 22,233 | Societe Generale | 3,756,047 | ||||||||
| 49,774 | Total SA | 4,016,563 | ||||||||
| 138,613 | Vivendi | 6,263,825 | ||||||||
| 22,243,379 | ||||||||||
| Germany: 1.1% | ||||||||||
| 201,777 | Deutsche Telekom AG | 4,145,476 | ||||||||
| 4,145,476 | ||||||||||
| Greece: 1.1% | ||||||||||
| 101,928 | OPAP SA | 4,173,161 | ||||||||
| 4,173,161 | ||||||||||
| Hong Kong: 0.5% | ||||||||||
| 285,168 | CLP Holdings Ltd. | 1,927,193 | ||||||||
| 1,927,193 | ||||||||||
| Hungary: 1.0% | ||||||||||
| 142,580 | Magyar Telekom Telecommunications PLC ADR | 3,826,847 | ||||||||
| 3,826,847 | ||||||||||
| Ireland: 1.2% | ||||||||||
| 183,167 | Allied Irish Banks PLC | 4,627,109 | ||||||||
| 4,627,109 | ||||||||||
| Israel: 0.8% | ||||||||||
| 569,697 | Bank Hapoalim BM | 3,154,084 | ||||||||
| 3,154,084 | ||||||||||
| Italy: 9.2% | ||||||||||
| 417,911 | Enel S.p.A. | 5,010,895 | ||||||||
| 160,077 | ENI S.p.A. | 5,844,901 | ||||||||
| 496,488 | Intesa Sanpaolo S.p.A. | 3,938,641 | ||||||||
| 91,755 | Italcementi S.p.A. RNC | 1,531,594 | ||||||||
| 459,500 | Mediaset S.p.A. | 4,766,010 | ||||||||
| 36,958 | Pirelli & C Real Estate S.p.A. | 1,832,431 | ||||||||
| 627,854 | Snam Rete Gas S.p.A. | 4,064,642 | ||||||||
| 1,620,120 | Telecom Italia S.p.A. RNC | 4,195,920 | ||||||||
| 531,068 | UniCredito Italiano S.p.A. | 4,568,462 | ||||||||
| 35,753,496 | ||||||||||
| Luxembourg: 0.6% | ||||||||||
| 1,240,801 | @,#,X | Lite-On Technology Corp. | 2,266,943 | |||||||
| 2,266,943 | ||||||||||
| Netherlands: 1.1% | ||||||||||
| 96,395 | Royal Dutch Shell PLC | 4,229,357 | ||||||||
| 4,229,357 | ||||||||||
| New Zealand: 0.5% | ||||||||||
| 562,802 | Telecom Corp. of New Zealand Ltd. | 1,890,538 | ||||||||
| 1,890,538 | ||||||||||
| Norway: 1.1% | ||||||||||
| 251,861 | DNB NOR ASA | 4,173,889 | ||||||||
| 4,173,889 | ||||||||||
| Poland: 1.2% | ||||||||||
| 479,913 | Telekomunikacja Polska SA | 4,546,685 | ||||||||
| 4,546,685 | ||||||||||
| Singapore: 0.8% | ||||||||||
| 194,000 | DBS Group Holdings Ltd. | 3,036,446 | ||||||||
| 3,036,446 | ||||||||||
| South Korea: 1.1% | ||||||||||
| 75,723 | KT Corp. ADR | 1,781,005 | ||||||||
| 26,261 | S-Oil Corp. | 2,385,108 | ||||||||
| 4,166,113 | ||||||||||
| Sweden: 1.0% | ||||||||||
| 214,023 | Svenska Cellulosa AB — B Shares | 3,781,584 | ||||||||
| 3,781,584 | ||||||||||
| Taiwan: 1.0% | ||||||||||
| 375,930 | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 4,003,655 | ||||||||
| 4,003,655 | ||||||||||
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| Shares | Value | |||||||||
| Thailand: 0.7% | ||||||||||
| 547,100 | Advanced Info Service PCL | $ | 1,443,959 | |||||||
| 179,100 | Siam Cement PCL | 1,388,126 | ||||||||
| 2,832,085 | ||||||||||
| United Kingdom: 18.9% | ||||||||||
| 75,573 | AstraZeneca PLC | 3,721,604 | ||||||||
| 254,210 | Aviva PLC | 4,005,201 | ||||||||
| 306,512 | Barclays PLC | 3,879,353 | ||||||||
| 413,742 | BBA Aviation PLC | 2,083,887 | ||||||||
| 345,032 | BP PLC | 4,488,875 | ||||||||
| 112,388 | British American Tobacco PLC | 4,281,719 | ||||||||
| 176,964 | Diageo PLC | 4,060,195 | ||||||||
| 1,342,060 | DSG International PLC | 3,624,779 | ||||||||
| 218,390 | GlaxoSmithKline PLC | 5,609,569 | ||||||||
| 336,573 | Hiscox Ltd. | 2,015,061 | ||||||||
| 209,807 | HSBC Holdings PLC | 4,159,778 | ||||||||
| 1,391,622 | Legal & General Group PLC | 4,062,675 | ||||||||
| 344,106 | Lloyds TSB Group PLC | 3,908,888 | ||||||||
| 503,233 | Royal Bank of Scotland Group PLC | 5,434,926 | ||||||||
| 321,915 | Scottish & Newcastle PLC | 5,252,132 | ||||||||
| 136,011 | Severn Trent PLC | 4,109,703 | ||||||||
| 528,944 | Tate & Lyle PLC | 4,799,961 | ||||||||
| 272,214 | United Utilities PLC | 4,138,650 | ||||||||
| 73,636,956 | ||||||||||
| United States: 25.2% | ||||||||||
| 48,975 | AGL Resources, Inc. | 1,935,982 | ||||||||
| 84,297 | Altria Group, Inc. | 6,147,780 | ||||||||
| 73,509 | L | Ameren Corp. | 3,973,897 | |||||||
| 68,190 | Arthur J Gallagher & Co. | 1,814,536 | ||||||||
| 92,848 | AT&T, Inc. | 3,880,118 | ||||||||
| 116,142 | Bank of America Corp. | 5,607,336 | ||||||||
| 135,066 | Bristol-Myers Squibb Co. | 4,050,629 | ||||||||
| 164,332 | Citigroup, Inc. | 6,885,512 | ||||||||
| 277,099 | L | Citizens Communications Co. | 3,646,623 | |||||||
| 83,460 | Consolidated Edison, Inc. | 3,930,131 | ||||||||
| 88,971 | Dow Chemical Co. | 4,007,254 | ||||||||
| 103,020 | Duke Energy Corp. | 1,974,893 | ||||||||
| 71,971 | Energy East Corp. | 2,006,551 | ||||||||
| 57,140 | Fifth Third Bancorp | 1,787,339 | ||||||||
| 107,013 | L | First Horizon National Corp. | 2,790,899 | |||||||
| 59,892 | Kinder Morgan Energy Partners LP | 3,144,330 | ||||||||
| 82,721 | Masco Corp. | 1,991,922 | ||||||||
| 200,663 | NiSource, Inc. | 4,103,558 | ||||||||
| 236,677 | Pfizer, Inc. | 5,824,621 | ||||||||
| 41,855 | Rayonier, Inc. | 2,021,178 | ||||||||
| 61,874 | L | Reynolds American, Inc. | 3,986,542 | |||||||
| 106,317 | Southern Co. | 3,897,581 | ||||||||
| 78,200 | Spectra Energy Corp. | 2,031,636 | ||||||||
| 117,605 | US Bancorp | 3,899,782 | ||||||||
| 116,997 | L | UST, Inc. | 6,238,280 | |||||||
| 77,002 | Wachovia Corp. | 3,521,301 | ||||||||
| 109,861 | Washington Mutual, Inc. | 3,062,925 | ||||||||
| 98,163,136 | ||||||||||
| Total Common Stock (Cost $329,606,326) | 360,923,014 | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 2.7% | ||||||||||
| Germany: 0.5% | ||||||||||
| 105,499 | @ | Alstria Office AG | 1,855,528 | |||||||
| 1,855,528 | ||||||||||
| Netherlands: 0.5% | ||||||||||
| 22,839 | Corio NV | 2,005,504 | ||||||||
| 2,005,504 | ||||||||||
| United States: 1.7% | ||||||||||
| 27,352 | Developers Diversified Realty Corp. | 1,378,541 | ||||||||
| 46,402 | Duke Realty Corp. | 1,491,824 | ||||||||
| 47,561 | L | Hospitality Properties Trust | 1,883,416 | |||||||
| 55,934 | iStar Financial, Inc. | 1,706,546 | ||||||||
| 6,460,327 | ||||||||||
| Total Real Estate Investment Trusts (Cost $11,517,540) | 10,321,359 | |||||||||
| EQUITY-LINKED SECURITIES: 0.5% | ||||||||||
| Luxembourg: 0.5% | ||||||||||
| 751,596 | @,X | Formosa Chemicals & Fibre Corp. (Counterparty: Merrill) | 2,018,174 | |||||||
| Total Equity-Linked Securities (Cost $1,179,964) | 2,018,174 | |||||||||
| WARRANTS: 1.8% | ||||||||||
| Ireland: 0.5% | ||||||||||
| 3,064,000 | X | Mega Financial Holding Co., Ltd. (Issuer: Morgan Stanley) | 1,995,383 | |||||||
| 1,995,383 | ||||||||||
| Luxembourg: 1.3% | ||||||||||
| 1,140,000 | Acer, Inc. (Issuer: Citibank Global Markets) | 2,669,880 | ||||||||
| 496,398 | X | Novatek Microelectronics Corp., Ltd. (Issuer: Merrill) | 2,282,818 | |||||||
| 4,952,698 | ||||||||||
| Total Warrants (Cost $6,570,544) | 6,948,081 | |||||||||
| Total Long-Term Investments (Cost $348,874,374) | 380,210,628 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 3.3% | ||||||||||
| Securities Lending CollateralCC: 3.3% | ||||||||||
| $ | 13,121,697 | Bank of New York Mellon Corp. Institutional Cash Reserves | $ | 13,121,697 | ||||||
| Total Short-Term Investments (Cost $13,121,697) | 13,121,697 | |||||||||
Total Investments in Securities (Cost $361,996,071)* | 101.0 | % | $ | 393,332,325 | ||||||||
Other Assets and Liabilities-Net | (1.0 | ) | (4,068,049 | ) | ||||||||
Net Assets | 100.0 | % | $ | 389,264,276 | ||||||||
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| @ | 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| cc | Securities purchased with cash collateral for securities loaned. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| * | Cost for federal income tax purposes is $364,038,475. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 43,164,589 | ||
| Gross Unrealized Depreciation | (13,870,739 | ) | ||
| Net Unrealized Appreciation | $ | 29,293,850 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Aerospace/ Defense | 0.5 | % | ||
| Agriculture | 5.3 | |||
| Banks | 21.2 | |||
| Beverages | 4.0 | |||
| Building Materials | 1.3 | |||
| Chemicals | 1.5 | |||
| Coal | 0.6 | |||
| Computers | 1.3 | |||
| Diversified Financial Services | 2.3 | |||
| Electric | 6.4 | |||
| Entertainment | 1.6 | |||
| Food | 1.2 | |||
| Forest Products & Paper | 1.5 | |||
| Gas | 2.6 | |||
| Insurance | 4.0 | |||
| Media | 3.7 | |||
| Miscellaneous Manufacturing | 1.1 | |||
| Oil & Gas | 8.5 | |||
| Pharmaceuticals | 4.9 | |||
| Pipelines | 2.7 | |||
| Real Estate | 2.1 | |||
| Real Estate Investment Trusts: Diversified | 1.3 | |||
| Real Estate Investment Trusts: Hotels | 0.5 | |||
| Real Estate Investment Trusts: Office Property | 0.5 | |||
| Real Estate Investment Trusts: Shopping Centers | 0.4 | |||
| Retail | 0.9 | |||
| Savings & Loans | 0.8 | |||
| Semiconductors | 1.6 | |||
| Telecommunications | 11.3 | |||
| Water | 2.1 | |||
| Short-Term Investments | 3.3 | |||
| Other Assets and Liabilities — Net | (1.0 | ) | ||
Net Assets | 100.0 | % | ||
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| Shares | Value | |||||||||
| COMMON STOCK: 99.9% | ||||||||||
| Australia: 1.7% | ||||||||||
| 721,737 | @ | Boart Longyear Group | $ | 1,735,738 | ||||||
| 30,804 | @ | InterOil Corp. | 716,501 | |||||||
| 45,511 | Perilya Ltd. | 168,264 | ||||||||
| 2,620,503 | ||||||||||
| Bermuda: 1.5% | ||||||||||
| 28,987 | Aquarius Platinum Ltd. | 1,115,324 | ||||||||
| 110,900 | @ | Energy XXI Acquisition Corp. Bermuda Ltd. | 587,770 | |||||||
| 17,400 | Nordic American Tanker Shipping | 673,206 | ||||||||
| 2,376,300 | ||||||||||
| Brazil: 4.2% | ||||||||||
| 44,900 | Cia Vale do Rio Doce ADR | 1,691,832 | ||||||||
| 103,300 | Petroleo Brasileiro SA | 4,930,272 | ||||||||
| 6,622,104 | ||||||||||
| Canada: 18.7% | ||||||||||
| 40,800 | Barrick Gold Corp. | 1,800,504 | ||||||||
| 345,340 | @ | Breakwater Resources Ltd. | 1,012,642 | |||||||
| 285,600 | @ | Consolidated Thompson Iron Mines Ltd. | 2,131,456 | |||||||
| 161,700 | @ | Eldorado Gold Corp. | 1,128,040 | |||||||
| 60,600 | Encana Corp. | 4,223,820 | ||||||||
| 269,000 | @ | European Goldfields Ltd. | 1,828,169 | |||||||
| 11,600 | First Quantum Minerals Ltd. | 1,248,721 | ||||||||
| 55,703 | @ | FNX Mining Co., Inc. | 2,249,584 | |||||||
| 61,249 | GoldCorp, Inc. | 2,151,677 | ||||||||
| 47,500 | @ | Kinross Gold Corp. | 934,800 | |||||||
| 98,100 | @ | Mag Silver Corp. | 1,542,143 | |||||||
| 28,400 | @ | Major Drilling Group International | 1,872,990 | |||||||
| 12,119 | Niko Resources Ltd. | 1,357,318 | ||||||||
| 189,279 | Norbord, Inc. | 1,602,956 | ||||||||
| 334,300 | @ | Shore Gold, Inc. | 1,610,189 | |||||||
| 55,992 | @ | Silver Wheaton Corp. | 944,585 | |||||||
| 293,709 | I | Solid Resources Ltd. | 310,918 | |||||||
| 38,800 | @,I | Triangle Petroleum Corp. | 50,828 | |||||||
| 91,917 | Yamana Gold, Inc. | 1,380,588 | ||||||||
| 29,381,928 | ||||||||||
| France: 0.5% | ||||||||||
| 9,000 | Total SA ADR | 725,490 | ||||||||
| 725,490 | ||||||||||
| Greece: 0.6% | ||||||||||
| 54,294 | Stealthgas, Inc. | 985,436 | ||||||||
| 985,436 | ||||||||||
| Hong Kong: 0.6% | ||||||||||
| 4,100 | CNOOC Ltd. ADR | 887,609 | ||||||||
| 887,609 | ||||||||||
| Jersey: 1.0% | ||||||||||
| 43,200 | Randgold Resources Ltd. ADR | 1,552,608 | ||||||||
| 1,552,608 | ||||||||||
| Luxembourg: 0.5% | ||||||||||
| 13,700 | Tenaris SA ADR | 737,060 | ||||||||
| 737,060 | ||||||||||
| Netherlands: 1.4% | ||||||||||
| 26,047 | Royal Dutch Shell PLC ADR | 2,279,373 | ||||||||
| 2,279,373 | ||||||||||
| Russia: 2.5% | ||||||||||
| 17,400 | Lukoil-Spon ADR | 1,596,704 | ||||||||
| 40,200 | OAO Gazprom ADR | 2,009,809 | ||||||||
| 8,400 | # | TMK OAO GDR | 373,716 | |||||||
| 3,980,229 | ||||||||||
| South Africa: 0.9% | ||||||||||
| 80,198 | @ | First Uranium Corp. | 918,586 | |||||||
| 1,380,355 | @ | Merafe Resources Ltd. | 431,246 | |||||||
| 1,349,832 | ||||||||||
| Switzerland: 0.8% | ||||||||||
| 18,500 | Xstrata PLC | 1,333,958 | ||||||||
| 1,333,958 | ||||||||||
| United States: 65.0% | ||||||||||
| 41,700 | Alcoa, Inc. | 1,650,903 | ||||||||
| 16,100 | Allegheny Technologies, Inc. | 1,644,937 | ||||||||
| 37,775 | @ | Allis-Chalmers Energy, Inc. | 663,707 | |||||||
| 84,297 | @ | American Oil & Gas, Inc. | 649,087 | |||||||
| 15,900 | Apache Corp. | 1,650,579 | ||||||||
| 26,009 | @ | Biofuel Energy Corp | 142,789 | |||||||
| 65,350 | @ | BPZ Energy, Inc. | 746,297 | |||||||
| 50,400 | Cabot Oil & Gas Corp. | 2,000,376 | ||||||||
| 10,900 | @ | Cameron International Corp. | 1,061,224 | |||||||
| 107,047 | @,I | Cano Petroleum, Inc. | 818,910 | |||||||
| 20,550 | @ | CNX Gas Corp. | 655,956 | |||||||
| 66,782 | @ | Concho Resources, Inc. | 1,301,581 | |||||||
| 46,350 | ConocoPhillips | 3,937,896 | ||||||||
| 16,900 | Consol Energy, Inc. | 954,850 | ||||||||
| 52,000 | @ | Continental Resources, Inc. | 1,222,520 | |||||||
| 7,800 | @ | Denbury Resources, Inc. | 441,480 | |||||||
| 46,100 | Devon Energy Corp. | 4,305,740 | ||||||||
| 22,910 | @ | Encore Acquisition Co. | 840,797 | |||||||
| 6,600 | Entergy Corp. | 791,142 | ||||||||
| 26,300 | EOG Resources, Inc. | 2,330,180 | ||||||||
| 90,293 | @ | EXCO Resources, Inc. | 1,524,146 | |||||||
| 11,450 | @ | Exterran Holdings, Inc. | 964,090 | |||||||
| 59,500 | ExxonMobil Corp. | 5,473,405 | ||||||||
| 28,500 | Freeport-McMoRan Copper & Gold, Inc. | 3,353,880 | ||||||||
| 57,771 | @ | Geokinetics, Inc. | 1,213,191 | |||||||
| 18,700 | GlobalSantaFe Corp. | 1,515,261 | ||||||||
| 6,900 | @ | Grant Prideco, Inc. | 339,204 | |||||||
| 13,800 | Halliburton Co. | 543,996 | ||||||||
| 16,800 | @ | Helix Energy Solutions Group, Inc. | 777,000 | |||||||
| 38,186 | @ | Hercules Offshore, Inc. | 1,032,549 | |||||||
| 28,400 | Hess Corp. | 2,033,724 | ||||||||
| 25,700 | @ | JK Acquisition Corp. | 151,373 | |||||||
| 97,665 | @ | Kodiak Oil & Gas Corp. | 224,630 | |||||||
| 22,500 | @ | Layne Christensen Co. | 1,281,150 | |||||||
| 56,600 | Marathon Oil Corp. | 3,346,758 | ||||||||
| 25,600 | @ | McDermott International, Inc. | 1,563,136 | |||||||
| 13,000 | @ | National Oilwell Varco, Inc. | 952,120 | |||||||
| 33,100 | Newmont Mining Corp. | 1,683,466 | ||||||||
| 20,400 | Noble Energy, Inc. | 1,561,416 | ||||||||
| 33,853 | @ | NRG Energy, Inc. | 1,545,728 | |||||||
| 20,900 | Nucor Corp. | 1,296,218 | ||||||||
| 72,200 | Occidental Petroleum Corp. | 4,985,410 | ||||||||
| 7,800 | @ | Oceaneering International, Inc. | 602,706 | |||||||
| 7,700 | Overseas Shipholding Group | 572,880 | ||||||||
| 42,616 | @ | Parallel Petroleum Corp. | 872,350 | |||||||
| 122,777 | @ | Particle Drilling Technologies, Inc. | 408,847 | |||||||
| 40,042 | @,I | PetroHawk Energy Corp. | 740,777 | |||||||
| 83,566 | @ | Petroquest Energy, Inc. | 1,078,001 | |||||||
| 36,700 | @ | Plains Exploration & Production Co. | 1,869,865 | |||||||
| 17,400 | @ | Quicksilver Gas Services LP | 426,300 | |||||||
| 42,379 | @ | Quicksilver Resources, Inc. | 2,415,603 | |||||||
| 25,500 | Range Resources Corp. | 1,145,715 | ||||||||
| 45,075 | @ | Rex Energy Corp. | 445,792 | |||||||
159
Table of Contents
| Shares | Value | |||||||||
| United States (continued) | ||||||||||
| 84,300 | Schlumberger Ltd. | $ | 8,140,851 | |||||||
| 25,795 | @ | Semgroup Energy Partners LP | 774,624 | |||||||
| 30,600 | @ | Southwestern Energy Co. | 1,582,938 | |||||||
| 5,600 | @ | Superior Energy Services | 207,648 | |||||||
| 18,450 | Targa Resources Partners LP | 507,560 | ||||||||
| 26,600 | @ | Transocean, Inc. | 3,175,242 | |||||||
| 22,600 | @ | Ultra Petroleum Corp. | 1,601,436 | |||||||
| 51,300 | Valero Energy Corp. | 3,613,059 | ||||||||
| 16,699 | @ | Vanguard Natural Resources, LLC | 311,436 | |||||||
| 18,300 | @ | Weatherford International Ltd. | 1,187,853 | |||||||
| 18,600 | @ | Whiting Petroleum Corp. | 1,005,516 | |||||||
| 67,400 | XTO Energy, Inc. | 4,474,012 | ||||||||
| 102,333,813 | ||||||||||
| Total Common Stock (Cost $125,669,570) | 157,166,243 | |||||||||
| SHORT-TERM INVESTMENTS: 1.1% | ||||||||||
| Mutual Fund: 0.8% | ||||||||||
| 1,250,000 | **,S | ING Institutional Prime Money Market Fund | 1,250,000 | |||||||
| Total Mutual Fund (Cost $1,250,000) | 1,250,000 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| REPURCHASE AGREEMENT: 0.3% | ||||||||||
| $ | 536,000 | Morgan Stanley Repurchase Agreement dated 10/31/07, 4.780%, due 11/01/07, $536,071 to be received upon repurchase (Collateralized by $555,000 Federal Home Loan Bank, Discount Note, Market Value $549,006, due 01/30/08) | 536,000 | |||||||
| Total Repurchase Agreement (Cost $536,000) | 536,000 | |||||||||
| Total Short-Term Investments (Cost $1,786,000) | 1,786,000 | |||||||||
Total Investments In Securities (Cost $127,455,570)* | 101.0 | % | $ | 158,952,243 | ||||||||
Other Assets and Liabilities-Net | (1.0 | ) | (1,583,308 | ) | ||||||||
Net Assets | 100.0 | % | $ | 157,368,935 | ||||||||
| @ | 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| I | Illiquid securities | |
| S | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. | |
| ** | Investment in affiliate | |
| * | Cost for federal income tax purposes is $128,500,854. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 31,949,153 | ||
| Gross Unrealized Depreciation | (1,497,764 | ) | ||
| Net Unrealized Appreciation | $ | 30,451,389 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Building Materials | 1.0 | % | ||
| Coal | 0.6 | |||
| Electric | 1.5 | |||
| Energy — Alternate Sources | 0.1 | |||
| Engineering & Construction | 2.9 | |||
| Holding Companies — Diversified | 0.1 | |||
| Iron/ Steel | 3.2 | |||
| Metal Fabricate/ Hardware | 0.7 | |||
| Mining | 21.6 | |||
| Oil & Gas | 54.2 | |||
| Oil & Gas Services | 11.5 | |||
| Pipelines | 1.1 | |||
| Transportation | 1.4 | |||
| Short-Term Investments | 1.1 | |||
| Other Assets and Liabilities — Net | (1.0 | ) | ||
Net Assets | 100.0 | % | ||
160
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 45.4% | ||||||||||
| Australia: 13.2% | ||||||||||
| 629,299 | Centro Properties Group | $ | 4,142,577 | |||||||
| 3,601,300 | CFS Retail Property Trust | 8,225,944 | ||||||||
| 4,145,100 | DB Rreef Trust | 8,119,918 | ||||||||
| 3,203,200 | GPT Group | 13,858,995 | ||||||||
| 4,938,600 | Macquarie CountryWide Trust | 9,299,062 | ||||||||
| 2,720,400 | Macquarie DDR Trust | 2,989,962 | ||||||||
| 4,869,231 | Macquarie Goodman Group | 31,563,234 | ||||||||
| 2,629,600 | Mirvac Group | 14,260,536 | ||||||||
| 2,794,100 | Stockland | 23,471,541 | ||||||||
| 6,074,650 | Valad Property Group | 10,773,622 | ||||||||
| 3,984,454 | Westfield Group | 81,469,802 | ||||||||
| 208,175,193 | ||||||||||
| Austria: 0.8% | ||||||||||
| 622,300 | @ | Conwert Immobilien Invest AG | 11,814,377 | |||||||
| 11,814,377 | ||||||||||
| Brazil: 0.5% | ||||||||||
| 537,800 | @ | BR Malls Participacoes SA | 7,893,058 | |||||||
| 7,893,058 | ||||||||||
| Canada: 0.7% | ||||||||||
| 462,700 | L | Brookfield Properties Co. (U.S. Denominated Security) | 11,553,619 | |||||||
| 11,553,619 | ||||||||||
| Cayman Islands: 0.8% | ||||||||||
| 5,005,900 | Agile Property Holdings Ltd. | 12,149,530 | ||||||||
| 12,149,530 | ||||||||||
| China: 1.7% | ||||||||||
| 1,251,500 | Greentown China Holdings Ltd. | 2,676,218 | ||||||||
| 2,017,200 | L | Guangzhou R&F Properties Co., Ltd. | 10,620,015 | |||||||
| 3,856,400 | Shimao Property Holdings Ltd. | 13,806,315 | ||||||||
| 27,102,548 | ||||||||||
| Finland: 1.5% | ||||||||||
| 2,211,885 | Citycon OYJ | 14,432,579 | ||||||||
| 686,040 | Sponda OYJ | 9,441,592 | ||||||||
| 23,874,171 | ||||||||||
| Germany: 0.2% | ||||||||||
| 84,505 | L | DIC Asset AG | 2,859,369 | |||||||
| 2,859,369 | ||||||||||
| Hong Kong: 11.3% | ||||||||||
| 1,916,300 | Cheung Kong Holdings Ltd. | 37,589,041 | ||||||||
| 2,597,900 | Hang Lung Group Ltd. | 15,339,563 | ||||||||
| 3,255,300 | Hang Lung Properties Ltd. | 15,661,531 | ||||||||
| 1,365,600 | Hongkong Land Holdings Ltd. | 6,831,679 | ||||||||
| 1,918,500 | Kerry Properties Ltd. | 16,687,540 | ||||||||
| 1,242,800 | Mandarin Oriental International Ltd. | 3,110,590 | ||||||||
| 1,108,600 | Shangri-La Asia Ltd. | 3,538,024 | ||||||||
| 8,682,900 | Shui On Land Ltd. | 12,086,442 | ||||||||
| 2,993,200 | Sun Hung Kai Properties Ltd. | 57,202,900 | ||||||||
| 1,707,000 | Wharf Holdings Ltd. | 10,292,328 | ||||||||
| 178,339,638 | ||||||||||
| Isle of Man: 0.1% | ||||||||||
| 135,300 | @ | Hirco PLC | 1,060,614 | |||||||
| 1,060,614 | ||||||||||
| Japan: 10.6% | ||||||||||
| 2,155,900 | Mitsubishi Estate Co., Ltd. | 64,630,173 | ||||||||
| 2,442,300 | Mitsui Fudosan Co., Ltd. | 67,563,736 | ||||||||
| 2,238 | NTT Urban Development Corp. | 5,048,602 | ||||||||
| 855,500 | Sumitomo Realty & Development Co., Ltd. | 30,194,998 | ||||||||
| 167,437,509 | ||||||||||
| Norway: 0.3% | ||||||||||
| 415,100 | Norwegian Property ASA | 5,201,392 | ||||||||
| 5,201,392 | ||||||||||
| Singapore: 2.6% | ||||||||||
| 1,005,500 | Allgreen Properties Ltd. | 1,108,939 | ||||||||
| 2,353,800 | Ascott Group Ltd. | 2,689,423 | ||||||||
| 5,416,700 | CapitaLand Ltd. | 30,498,387 | ||||||||
| 490,200 | L | Keppel Land Ltd. | 2,835,624 | |||||||
| 1,753,500 | Wing Tai Holdings Ltd. | 4,239,255 | ||||||||
| 41,371,628 | ||||||||||
| Sweden: 0.3% | ||||||||||
| 489,700 | Hufvudstaden AB | 5,395,321 | ||||||||
| 5,395,321 | ||||||||||
| United Kingdom: 0.8% | ||||||||||
| 3,454,766 | Safestore Holdings Ltd. | 12,696,360 | ||||||||
| 12,696,360 | ||||||||||
| Total Common Stock (Cost $537,512,042) | 716,924,327 | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 51.5% | ||||||||||
| Canada: 1.1% | ||||||||||
| 64,000 | @,# | Calloway Real Estate Investment Trust | 1,700,524 | |||||||
| 93,000 | Calloway Real Estate Investment Trust | 2,471,074 | ||||||||
| 545,600 | RioCan Real Estate Investment Trust | 13,422,690 | ||||||||
| 17,594,288 | ||||||||||
| France: 5.1% | ||||||||||
| 211,200 | Klepierre | 11,492,718 | ||||||||
| 226,609 | Mercialys | 8,882,790 | ||||||||
| 32,770 | Societe de la Tour Eiffel | 5,499,359 | ||||||||
| 40,243 | Societe Immobiliere de Location pour l’Industrie et le Commerce | 6,234,418 | ||||||||
| 196,236 | Unibail-Rodamco | 49,008,047 | ||||||||
| 81,117,332 | ||||||||||
| Hong Kong: 0.6% | ||||||||||
| 4,166,900 | Link Real Estate Investment Trust | 9,454,141 | ||||||||
| 9,454,141 | ||||||||||
| Japan: 3.4% | ||||||||||
| 1,102 | Japan Logistics Fund, Inc. | 7,898,502 | ||||||||
| 652 | Japan Real Estate Investment Corp. | 8,108,952 | ||||||||
| 969 | Japan Retail Fund Investment Corp. | 7,195,821 | ||||||||
| 726 | Kenedix Realty Investment Corp. | 5,055,238 | ||||||||
| 1,011 | New City Residence Investment Corp. | 4,708,902 | ||||||||
| 516 | Nippon Accommodations Fund, Inc. | 3,087,912 | ||||||||
161
Table of Contents
| Shares | Value | |||||||||
| Japan (continued) | ||||||||||
| 1,009 | Nippon Building Fund, Inc. | $ | 14,636,529 | |||||||
| 601 | Nomura Real Estate Residential Fund, Inc. | 3,716,521 | ||||||||
| 54,408,377 | ||||||||||
| Netherlands: 1.4% | ||||||||||
| 176,910 | Corio NV | 15,534,557 | ||||||||
| 101,825 | Eurocommercial Properties NV | 6,011,222 | ||||||||
| 21,545,779 | ||||||||||
| Singapore: 1.0% | ||||||||||
| 1,810,000 | @ | Ascendas Real Estate Investment Trust | 3,264,281 | |||||||
| 4,811,000 | @ | CapitaMall Trust | 12,279,788 | |||||||
| 15,544,069 | ||||||||||
| United Kingdom: 6.5% | ||||||||||
| 771,500 | British Land Co. PLC | 17,453,893 | ||||||||
| 352,900 | Brixton PLC | 2,729,856 | ||||||||
| 697,900 | Derwent Valley Holdings PLC | 24,229,967 | ||||||||
| 487,596 | Great Portland Estates PLC | 5,814,447 | ||||||||
| 831,728 | Hammerson PLC | 19,283,057 | ||||||||
| 798,417 | Land Securities Group PLC | 27,374,600 | ||||||||
| 623,200 | Segro PLC | 6,066,744 | ||||||||
| 102,952,564 | ||||||||||
| United States: 32.4% | ||||||||||
| 187,800 | AMB Property Corp. | 12,272,730 | ||||||||
| 198,420 | AvalonBay Communities, Inc. | 24,336,213 | ||||||||
| 198,200 | BioMed Realty Trust, Inc. | 4,734,998 | ||||||||
| 334,600 | Boston Properties, Inc. | 36,250,564 | ||||||||
| 188,700 | BRE Properties, Inc. | 10,340,760 | ||||||||
| 126,300 | Camden Property Trust | 7,874,805 | ||||||||
| 127,300 | Corporate Office Properties Trust SBI MD | 5,261,309 | ||||||||
| 279,300 | Douglas Emmett, Inc. | 7,348,383 | ||||||||
| 158,600 | L | Equity One, Inc. | 4,152,148 | |||||||
| 76,500 | Equity Residential | 3,196,170 | ||||||||
| 50,800 | Essex Property Trust, Inc. | 6,270,244 | ||||||||
| 286,200 | Extra Space Storage, Inc. | 4,499,064 | ||||||||
| 254,400 | L | Federal Realty Investment Trust | 22,443,168 | |||||||
| 222,400 | FelCor Lodging Trust, Inc. | 4,657,056 | ||||||||
| 488,500 | General Growth Properties, Inc. | 26,554,860 | ||||||||
| 163,200 | HCP, Inc. | 5,555,328 | ||||||||
| 213,200 | Highwoods Properties, Inc. | 7,666,672 | ||||||||
| 207,800 | L | Home Properties, Inc. | 10,685,076 | |||||||
| 1,114,310 | Host Hotels & Resorts, Inc. | 24,693,110 | ||||||||
| 112,700 | Kilroy Realty Corp. | 7,330,008 | ||||||||
| 232,600 | L | Kimco Realty Corp. | 9,657,552 | |||||||
| 91,700 | LaSalle Hotel Properties | 3,789,044 | ||||||||
| 216,600 | Macerich Co. | 18,564,786 | ||||||||
| 437,200 | L | Nationwide Health Properties, Inc. | 13,649,384 | |||||||
| 425,800 | Omega Healthcare Investors, Inc. | 7,123,634 | ||||||||
| 121,800 | Post Properties, Inc. | 4,993,800 | ||||||||
| 479,900 | Prologis | 34,428,024 | ||||||||
| 69,554 | Public Storage, Inc. | 5,631,787 | ||||||||
| 291,100 | L | Regency Centers Corp. | 20,807,828 | |||||||
| 493,200 | Simon Property Group, Inc. | 51,347,052 | ||||||||
| 221,400 | L | SL Green Realty Corp. | 26,714,124 | |||||||
| 190,400 | Strategic Hotel Capital, Inc. | 4,158,336 | ||||||||
| 189,500 | Tanger Factory Outlet Centers, Inc. | 7,981,740 | ||||||||
| 181,700 | L | Taubman Centers, Inc. | 10,696,679 | |||||||
| 528,400 | Ventas, Inc. | 22,663,076 | ||||||||
| 295,300 | Vornado Realty Trust | 32,990,916 | ||||||||
| 511,320,428 | ||||||||||
| Total Real Estate Investment Trusts (Cost $762,667,131) | 813,936,978 | |||||||||
| MUTUAL FUNDS: 0.1% | ||||||||||
| Guernsey: 0.1% | ||||||||||
| 1,266,400 | ** | ING UK Real Estate Income Trust Ltd. | 2,163,458 | |||||||
| Total Mutual Funds (Cost $2,242,416) | 2,163,458 | |||||||||
| WARRANTS: 0.7% | ||||||||||
| Hong Kong: 0.0% | ||||||||||
| 158,416 | China Overseas Land & Investment Ltd. | 131,839 | ||||||||
| 131,839 | ||||||||||
| India: 0.7% | ||||||||||
| 1,023,600 | X | Macquarie Bank Ltd. | 9,998,214 | |||||||
| 9,998,214 | ||||||||||
| Total Warrants (Cost $6,303,948) | 10,130,053 | |||||||||
| PURCHASED OPTIONS: 0.3% | ||||||||||
| Brazil: 0.3% | ||||||||||
| 517,500 | Call Option OTC — Merrill Lynch Brascan Residential Properties SA (Brazil) Zero Strike Option — Exp 10/22/2008 | 4,126,484 | ||||||||
| Total Purchased Options (Cost $3,881,855) | 4,126,484 | |||||||||
| Total Long-Term Investments (Cost $1,312,607,392) | 1,547,281,300 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 3.5% | ||||||||||
| U.S. Government Agency Obligations: 1.3% | ||||||||||
| $ | 21,203,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 21,200,526 | |||||
| Total U.S. Government Agency Obligations (Cost $21,200,526) | 21,200,526 | |||||||||
162
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Securities Lending CollateralCC: 2.2% | ||||||||||
| $ | 34,107,610 | Bank of New York Mellon Corp. Institutional Cash Reserves | $ | 34,107,610 | ||||||
| Total Securities Lending Collateral (Cost $34,107,610) | 34,107,610 | |||||||||
| Total Short-Term Investments (Cost $55,308,136) | 55,308,136 | |||||||||
Total Investments in Securities (Cost $1,367,915,528)* | 101.5 | % | $ | 1,602,589,436 | ||||||||
Other Assets and Liabilities-Net | (1.5 | ) | (23,017,991 | ) | ||||||||
Net Assets | 100.0 | % | $ | 1,579,571,445 | ||||||||
| @ | Non-income producing security | |
| # | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| cc | Securities purchased with cash collateral for securities loaned. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| ** | Investment in affiliate | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $1,440,506,930. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 182,364,731 | ||
| Gross Unrealized Depreciation | (20,282,225 | ) | ||
| Net Unrealized Appreciation | $ | 162,082,506 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Closed-End Funds | 0.1 | % | ||
| Engineering & Construction | 0.7 | |||
| Holding Companies — Diversified | 0.7 | |||
| Lodging | 0.4 | |||
| Real Estate | 43.8 | |||
| Real Estate Investment Trusts: Apartments | 4.8 | |||
| Real Estate Investment Trusts: Diversified | 13.2 | |||
| Real Estate Investment Trusts: Health Care | 3.1 | |||
| Real Estate Investment Trusts: Hotels | 2.4 | |||
| Real Estate Investment Trusts: Office Property | 10.1 | |||
| Real Estate Investment Trusts: Regional Malls | 6.8 | |||
| Real Estate Investment Trusts: Shopping Centers | 7.1 | |||
| Real Estate Investment Trusts: Storage | 0.6 | |||
| Real Estate Investment Trusts: Warehouse/ Industrial | 3.4 | |||
| Storage/ Warehousing | 0.8 | |||
| Short-Term Investments | 3.5 | |||
| Other Assets and Liabilities — Net | (1.5 | ) | ||
Net Assets | 100.0 | % | ||
163
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 95.9% | ||||||||||
| Australia: 2.5% | ||||||||||
| 1,145,500 | Dyno Nobel Ltd. | $ | 2,637,898 | |||||||
| 194,000 | @ | Moto Goldmines Ltd. | 628,423 | |||||||
| 3,266,321 | ||||||||||
| Brazil: 3.9% | ||||||||||
| 297,000 | L | Centrais Eletricas Brasileiras SA ADR | 4,506,975 | |||||||
| 11,700 | L | Cia de Saneamento Basico do Estado de Sao Paulo ADR | 608,634 | |||||||
| 5,115,609 | ||||||||||
| Canada: 8.5% | ||||||||||
| 43,264 | L | AbitibiBowater, Inc. | 1,482,225 | |||||||
| 120,000 | Barrick Gold Corp. | 5,295,600 | ||||||||
| 182,700 | @ | Crystallex International Corp. | 573,678 | |||||||
| 160,000 | @ | Gabriel Resources Ltd. | 431,906 | |||||||
| 85,100 | @,L | Ivanhoe Mines Ltd. | 1,169,274 | |||||||
| 70,372 | @,L | Kinross Gold Corp. | 1,384,921 | |||||||
| 198,100 | @ | Patheon, Inc. | 733,976 | |||||||
| 11,071,580 | ||||||||||
| France: 3.3% | ||||||||||
| 30,100 | L | Sanofi-Aventis ADR | 1,324,701 | |||||||
| 11,300 | L | Technip SA ADR | 1,011,474 | |||||||
| 31,000 | Thales SA | 1,937,833 | ||||||||
| 4,274,008 | ||||||||||
| Germany: 0.6% | ||||||||||
| 36,200 | @ | Premiere AG | 738,587 | |||||||
| 738,587 | ||||||||||
| Italy: 1.6% | ||||||||||
| 811,926 | Telecom Italia S.p.A. RNC | 2,102,792 | ||||||||
| 2,102,792 | ||||||||||
| Japan: 14.8% | ||||||||||
| 500 | Fields Corp. | 768,970 | ||||||||
| 12,300 | Kao Corp. ADR | 3,520,839 | ||||||||
| 66,000 | Kissei Pharmaceutical Co., Ltd. | 1,205,574 | ||||||||
| 245,000 | Nippon Telegraph & Telephone Corp. ADR | 5,622,749 | ||||||||
| 97,800 | L | Paramount Bed Co., Ltd. | 1,334,132 | |||||||
| 84,000 | Sekisui House Ltd. | 1,074,648 | ||||||||
| 25,400 | Seven & I Holdings Co., Ltd. | 655,869 | ||||||||
| 282,000 | Sumitomo Osaka Cement Co., Ltd. | 706,741 | ||||||||
| 96,800 | Takefuji Corp. | 2,466,883 | ||||||||
| 54,000 | Toppan Printing Co., Ltd. | 526,841 | ||||||||
| 29,300 | Toppan Printing Co., Ltd. ADR | 1,425,797 | ||||||||
| 19,309,043 | ||||||||||
| Netherlands: 4.2% | ||||||||||
| 62,283 | Royal Dutch Shell PLC ADR | 5,434,192 | ||||||||
| 5,434,192 | ||||||||||
| Norway: 1.4% | ||||||||||
| 1,842,600 | @ | Marine Harvest | 1,881,061 | |||||||
| 1,881,061 | ||||||||||
| Papua New Guinea: 3.0% | ||||||||||
| 1,004,504 | @ | Lihir Gold Ltd. | 3,988,010 | |||||||
| 3,988,010 | ||||||||||
| South Africa: 5.2% | ||||||||||
| 105,000 | Anglogold Ashanti Ltd. ADR | 4,877,250 | ||||||||
| 102,900 | Gold Fields Ltd. | 1,857,851 | ||||||||
| 4,400 | Mondi Ltd. | 44,601 | ||||||||
| 6,779,702 | ||||||||||
| South Korea: 6.2% | ||||||||||
| 185,150 | Korea Electric Power Corp. ADR | 4,119,588 | ||||||||
| 45,200 | KT Corp. ADR | 1,063,104 | ||||||||
| 36,400 | Samsung SDI Co., Ltd. | 2,935,474 | ||||||||
| 8,118,166 | ||||||||||
| Taiwan: 1.5% | ||||||||||
| 102,425 | Chunghwa Telecom Co., Ltd. ADR | 1,966,560 | ||||||||
| 1,966,560 | ||||||||||
| United Kingdom: 8.8% | ||||||||||
| 28,040 | Anglo American PLC | 1,950,408 | ||||||||
| 50,100 | AstraZeneca PLC ADR | 2,459,910 | ||||||||
| 221,500 | Benfield Group Ltd. | 1,402,715 | ||||||||
| 17,800 | BP PLC ADR | 1,388,222 | ||||||||
| 11,000 | Mondi PLC | 101,954 | ||||||||
| 45,900 | Stolt-Nielsen SA | 1,346,932 | ||||||||
| 38,900 | L,X | Stolt-Nielsen SA ADR | 1,137,978 | |||||||
| 437,500 | Vodafone Group PLC | 1,723,989 | ||||||||
| 11,512,108 | ||||||||||
| United States: 30.4% | ||||||||||
| 22,300 | @,L | AGCO Corp. | 1,330,864 | |||||||
| 220,500 | @,L | Allied Waste Industries, Inc. | 2,787,120 | |||||||
| 33,300 | @ | Amgen, Inc. | 1,935,063 | |||||||
| 152,500 | @,L | Apex Silver Mines Ltd. | 3,126,250 | |||||||
| 40,200 | Chevron Corp. | 3,678,702 | ||||||||
| 37,200 | @,L | GrafTech International Ltd. | 703,080 | |||||||
| 34,300 | Idacorp, Inc. | 1,196,727 | ||||||||
| 20,000 | Microsoft Corp. | 736,200 | ||||||||
| 106,800 | Newmont Mining Corp. | 5,431,848 | ||||||||
| 43,050 | Peabody Energy Corp. | 2,400,038 | ||||||||
| 92,100 | L | Puget Energy, Inc. | 2,601,825 | |||||||
| 18,900 | @,L | Scholastic Corp. | 748,062 | |||||||
| 115,000 | @,L | Smithfield Foods, Inc. | 3,297,050 | |||||||
| 30,600 | @ | Tech Data Corp. | 1,203,498 | |||||||
| 210,100 | Tyson Foods, Inc. | 3,319,580 | ||||||||
| 31,000 | Union Pacific Corp. | 3,969,240 | ||||||||
| 26,600 | Wal-Mart Stores, Inc. | 1,202,586 | ||||||||
| 39,667,733 | ||||||||||
| Total Common Stock (Cost $105,809,444) | 125,225,472 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 21.4% | ||||||||||
| U.S. Government Agency Obligations: 2.6% | ||||||||||
| $ | 3,438,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 3,437,599 | |||||
| Total U.S. Government Agency Obligations (Cost $3,437,599) | 3,437,599 | |||||||||
164
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Securities Lending CollateralCC: 18.8% | ||||||||||
| $ | 24,568,922 | Bank of New York Mellon Corp. Institutional Cash Reserves | $ | 24,568,922 | ||||||
| Total Securities Lending Collateral (Cost $24,568,922) | 24,568,922 | |||||||||
| Total Short-Term Investments (Cost $28,006,521) | 28,006,521 | |||||||||
Total Investments in Securities (Cost $133,815,965)* | 117.3 | % | $ | 153,231,993 | ||||||||
Other Assets and Liabilities-Net | (17.3 | ) | (22,548,834 | ) | ||||||||
Net Assets | 100.0 | % | $ | 130,683,159 | ||||||||
| @ | Non-income producing security | |
| ADR | American Depositary Receipt | |
| cc | Securities purchased with cash collateral for securities loaned. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $134,577,598. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 22,372,498 | ||
| Gross Unrealized Depreciation | (3,718,103 | ) | ||
| Net Unrealized Appreciation | $ | 18,654,395 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Aerospace/ Defense | 1.5 | % | ||
| Biotechnology | 1.5 | |||
| Building Materials | 0.6 | |||
| Coal | 1.8 | |||
| Commercial Services | 1.5 | |||
| Cosmetics/ Personal Care | 2.7 | |||
| Distribution/ Wholesale | 0.9 | |||
| Diversified Financial Services | 1.9 | |||
| Electric | 9.5 | |||
| Electrical Components & Equipment | 0.5 | |||
| Electronics | 2.3 | |||
| Environmental Control | 2.1 | |||
| Food | 6.5 | |||
| Forest Products & Paper | 1.3 | |||
| Healthcare — Products | 1.0 | |||
| Home Builders | 0.8 | |||
| Insurance | 1.1 | |||
| Leisure Time | 0.6 | |||
| Machinery — Diversified | 1.0 | |||
| Media | 1.1 | |||
| Mining | 23.5 | |||
| Miscellaneous Manufacturing | 2.0 | |||
| Oil & Gas | 8.0 | |||
| Oil & Gas Services | 0.8 | |||
| Pharmaceuticals | 4.4 | |||
| Retail | 1.4 | |||
| Software | 0.6 | |||
| Telecommunications | 9.6 | |||
| Transportation | 4.9 | |||
| Water | 0.5 | |||
| Short-Term Investments | 21.4 | |||
| Other Assets and Liabilities — Net | (17.3 | ) | ||
| Net Assets | 100.0 | % | ||
165
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 95.0% | ||||||||||
| Australia: 5.9% | ||||||||||
| 126,603 | Ansell Ltd. | $ | 1,467,652 | |||||||
| 51,800 | @ | Anvil Mining Ltd. | 1,052,286 | |||||||
| 62,910 | APA Group | 231,824 | ||||||||
| 166,524 | @ | Arrow Energy NL | 447,450 | |||||||
| 327,682 | Australian Infrastructure Fund | 1,026,798 | ||||||||
| 121,854 | @ | Australian Worldwide Exploration Ltd. | 344,461 | |||||||
| 192,957 | Beach Petroleum Ltd. | 265,384 | ||||||||
| 80,980 | Cabcharge Australia Ltd. | 808,872 | ||||||||
| 771,137 | Centro Retail Trust | 1,156,231 | ||||||||
| 635,807 | CFS Retail Property Trust | 1,452,285 | ||||||||
| 165,145 | Challenger Financial Services Group Ltd. | 986,870 | ||||||||
| 903,804 | Commonwealth Property Office Fund | 1,337,573 | ||||||||
| 89,240 | Computershare Ltd. | 719,548 | ||||||||
| 74,645 | CSR Ltd. | 238,253 | ||||||||
| 44,051 | Downer EDI Ltd. | 274,696 | ||||||||
| 12,385 | Energy Resources of Australia Ltd. | 253,242 | ||||||||
| 45,210 | Felix Resources Ltd. | 309,588 | ||||||||
| 90,459 | Healthscope Ltd. | 460,772 | ||||||||
| 4,643 | Incitec Pivot Ltd. | 385,636 | ||||||||
| 16,172 | Jubilee Mines NL | 360,359 | ||||||||
| 51,339 | Kagara Zinc Ltd. | 323,432 | ||||||||
| 338,904 | Macquarie CountryWide Trust | 638,134 | ||||||||
| 142,180 | Macquarie Media Group Ltd. | 608,322 | ||||||||
| 263,306 | Metcash Ltd. | 1,152,754 | ||||||||
| 63,447 | MFS Ltd. | 311,861 | ||||||||
| 63,253 | Minara Resources Ltd. | 389,432 | ||||||||
| 35,169 | Monadelphous Group Ltd. | 557,233 | ||||||||
| 281,985 | OneSteel Ltd. | 1,822,020 | ||||||||
| 314,802 | Oxiana Ltd. | 1,254,605 | ||||||||
| 402,420 | Pacific Brands Ltd. | 1,301,562 | ||||||||
| 49,508 | @ | Paladin Resources Ltd. | 385,438 | |||||||
| 87,559 | PaperlinX Ltd. | 225,085 | ||||||||
| 84,687 | Perilya Ltd. | 313,105 | ||||||||
| 167,603 | PMP Ltd. | 273,722 | ||||||||
| 102,945 | Seven Network Ltd. | 1,321,700 | ||||||||
| 21,235 | Sims Group Ltd. | 560,969 | ||||||||
| 14,037 | Sonic Healthcare Ltd. | 226,379 | ||||||||
| 600,005 | # | Spark Infrastructure Group | 1,097,734 | |||||||
| 108,296 | @ | Tap Oil Ltd. | 237,105 | |||||||
| 65,258 | Transfield Services Ltd. | 963,446 | ||||||||
| 27,543,818 | ||||||||||
| Austria: 0.9% | ||||||||||
| 1,691 | A-TEC Industries AG | 413,907 | ||||||||
| 80,359 | @ | Austrian Airlines | 847,978 | |||||||
| 26,557 | @ | Ca Immo International AA | 493,604 | |||||||
| 45,537 | @ | CA Immobilien Anlagen AG | 1,229,794 | |||||||
| 58,204 | @ | Conwert Immobilien Invest AG | 1,105,004 | |||||||
| 7,240 | Zumtobel AG | 309,708 | ||||||||
| 4,399,995 | ||||||||||
| Belgium: 0.7% | ||||||||||
| 42,215 | AGFA-Gevaert NV | 588,100 | ||||||||
| 9,965 | EVS Broadcast Equipment SA | 1,101,252 | ||||||||
| 10,244 | Omega Pharma SA | 687,577 | ||||||||
| 29,000 | @ | RHJ International | 509,997 | |||||||
| 6,342 | @ | Telenet Group Holding NV | 234,039 | |||||||
| 3,120,965 | ||||||||||
| Bermuda: 0.4% | ||||||||||
| 54,128 | Catlin Group Ltd. | 566,275 | ||||||||
| 41,900 | @ | Global Sources Ltd. | 1,357,979 | |||||||
| 1,924,254 | ||||||||||
| Canada: 7.3% | ||||||||||
| 59,500 | Aeroplan Income Fund | 1,410,893 | ||||||||
| 42,000 | @ | Alamos Gold, Inc. | 323,675 | |||||||
| 54,300 | @ | Angiotech Pharmaceuticals, Inc. | 260,967 | |||||||
| 15,100 | Astral Media Inc. | 719,953 | ||||||||
| 9,200 | Atco Ltd. | 618,430 | ||||||||
| 7,576 | @ | Bowater, Inc. | 257,994 | |||||||
| 116,100 | @ | Breakwater Resources Ltd. | 340,440 | |||||||
| 17,100 | CAE, Inc. | 230,619 | ||||||||
| 16,900 | Canfor Pulp Income Fund | 221,481 | ||||||||
| 100,000 | @ | CanWest Global Communications Corp. | 876,515 | |||||||
| 77,400 | @ | Crystallex International Corp. | 244,986 | |||||||
| 22,000 | @ | Denison Mines Corp. | 309,279 | |||||||
| 39,900 | @ | Eldorado Gold Corp. | 278,348 | |||||||
| 45,300 | Emera, Inc. | 982,103 | ||||||||
| 32,800 | @ | Emergis, Inc. | 260,067 | |||||||
| 1,000 | First Quantum Minerals Ltd. | 107,648 | ||||||||
| 7,400 | @ | FNX Mining Co., Inc. | 298,851 | |||||||
| 38,600 | @ | Forzani Group Ltd. | 735,511 | |||||||
| 37,300 | @ | GSI Group, Inc. | 350,620 | |||||||
| 44,500 | Harvest Energy Trust | 1,266,725 | ||||||||
| 15,100 | @ | HudBay Minerals, Inc. | 435,425 | |||||||
| 28,800 | Iamgold Corp. | 252,436 | ||||||||
| 27,200 | Industrial Alliance Insurance | 1,144,263 | ||||||||
| 8,300 | INMET Mining Corp. | 887,419 | ||||||||
| 63,200 | Jazz Air Income Fund | 515,154 | ||||||||
| 42,200 | Kingsway Financial Services, Inc. | 884,518 | ||||||||
| 25,400 | Laurentian Bank of Canada | 1,175,017 | ||||||||
| 6,900 | @ | Lundin Mining Corp. | 93,495 | |||||||
| 37,900 | Methanex Corp. | 1,157,482 | ||||||||
| 39,500 | Metro, Inc. | 1,485,667 | ||||||||
| 7,100 | MI Developments, Inc. | 227,810 | ||||||||
| 46,300 | @ | Miramar Mining Corp | 315,643 | |||||||
| 2,400 | Niko Resources Ltd. | 268,798 | ||||||||
| 15,900 | Northbridge Financial Corp. | 622,770 | ||||||||
| 141,900 | @ | Northgate Minerals Corp. | 492,703 | |||||||
| 17,300 | @ | Oilexco Incorporated | 315,728 | |||||||
| 14,600 | Pason Systems, Inc. | 231,832 | ||||||||
| 7,000 | @ | Petrobank Energy & Resources Ltd. | 348,129 | |||||||
| 26,700 | @ | Petrolifera Petroleum Ltd. | 463,819 | |||||||
| 79,800 | Progress Energy Trust | 999,348 | ||||||||
| 25,200 | @ | QuADRa Mining Ltd. | 541,534 | |||||||
| 43,500 | @ | Saxon Energy Services, Inc. | 244,059 | |||||||
| 24,900 | Shawcor Ltd. | 1,038,543 | ||||||||
| 97,400 | Sherritt International Corp. | 1,814,683 | ||||||||
| 18,000 | @ | Silver Wheaton Corp. | 304,684 | |||||||
| 58,000 | Silvercorp Metals, Inc. | 567,321 | ||||||||
| 16,400 | @ | Sino-Forest Corp. | 436,106 | |||||||
| 22,900 | @ | Stantec, Inc. | 896,704 | |||||||
| 9,400 | @ | SXR Uranium One, Inc. | 104,384 | |||||||
| 96,900 | @ | Taseko Mines Ltd. | 577,512 | |||||||
| 35,000 | Teranet Income Fund | 372,360 | ||||||||
| 23,400 | Transcontinental, Inc. | 515,238 | ||||||||
| 5,100 | TSX Group, Inc. | 275,016 | ||||||||
| 51,700 | @ | UTS Energy Corp. | 334,396 | |||||||
| 38,800 | Vermilion Energy Trust | 1,618,292 | ||||||||
| 16,800 | West Fraser Timber Co., Ltd. | 570,878 | ||||||||
| 16,000 | Westshore Terminals Income Fund | 254,909 | ||||||||
| 62,300 | Yamana Gold, Inc. | 939,133 | ||||||||
| 33,818,313 | ||||||||||
| Cyprus: 0.0% | ||||||||||
| 53,000 | @ | Deep Sea Supply PLC | 248,676 | |||||||
| 248,676 | ||||||||||
| Denmark: 0.4% | ||||||||||
| 19,000 | East Asiatic Co., Ltd. A/S | 1,538,565 | ||||||||
| 1,920 | NKT Holding A/S | 210,333 | ||||||||
| �� | 1,748,898 | |||||||||
166
Table of Contents
| Shares | Value | |||||||||
| Finland: 0.3% | ||||||||||
| 7,510 | Elisa OYJ | $ | 223,429 | |||||||
| 3,760 | Kesko OYJ | 225,848 | ||||||||
| 5,990 | Nokian Renkaat OYJ | 226,814 | ||||||||
| 18,232 | Oriola-KD OYJ | 85,185 | ||||||||
| 8,583 | Orion OYJ | 220,721 | ||||||||
| 3,666 | Outotec OYJ | 281,404 | ||||||||
| 1,263,401 | ||||||||||
| France: 9.2% | ||||||||||
| 35,302 | Accor SA | 3,382,104 | ||||||||
| 35,386 | Air France-KLM | 1,350,298 | ||||||||
| 18,598 | @ | Arkema | 1,268,691 | |||||||
| 4,819 | @ | Atos Origin | 293,825 | |||||||
| 1,687 | Bacou Dalloz | 237,147 | ||||||||
| 2,806 | Bollore Investissement | 603,733 | ||||||||
| 2,535 | Bonduelle S.C.A. | 330,289 | ||||||||
| 3,877 | Bongrain SA | 456,100 | ||||||||
| 3,448 | Bourbon SA | 244,348 | ||||||||
| 7,514 | @ | Business Objects SA | 451,946 | |||||||
| 10,595 | Capgemini SA | 678,553 | ||||||||
| 2,072 | Casino Guichard Perrachon SA | 232,012 | ||||||||
| 3,322 | Cie Generale D’Optique Essilor International SA | 212,269 | ||||||||
| 6,514 | Ciments Francais SA | 1,228,080 | ||||||||
| 14,887 | CNP Assurances | 1,902,114 | ||||||||
| 6,929 | @ | Compagnie Generale de Geophysique SA | 2,267,527 | |||||||
| 9,733 | Compagnie Generale des Etablissements Michelin | 1,310,815 | ||||||||
| 3,430 | Dassault Systemes SA | 213,254 | ||||||||
| 1,954 | Eiffage SA | 221,549 | ||||||||
| 1,752 | Eramet SLN | 784,868 | ||||||||
| 12,148 | Etablissements Maurel et Prom | 269,642 | ||||||||
| 3,971 | Etam Developpement SA | 234,866 | ||||||||
| 12,767 | Eurazeo | 1,909,416 | ||||||||
| 60,537 | @ | Eutelsat Communications | 1,639,752 | |||||||
| 8,196 | @ | Gemalto NV | 241,367 | |||||||
| 590 | Generale de Sante | 25,838 | ||||||||
| 6,064 | Haulotte Group | 231,736 | ||||||||
| 2,062 | Hermes International | 271,784 | ||||||||
| 2,305 | Iliad SA | 242,243 | ||||||||
| 26,984 | IMS-International Metal Service | 1,301,104 | ||||||||
| 13,863 | Ipsen | 790,888 | ||||||||
| 5,527 | Kaufman & Broad SA | 315,371 | ||||||||
| 25,642 | Lagardere SCA | 2,174,503 | ||||||||
| 36,506 | Legrand SA | 1,352,393 | ||||||||
| 2,068 | Neopost SA | 240,515 | ||||||||
| 5,138 | Neuf Cegetel | 260,655 | ||||||||
| 1,286 | Nexans SA | 219,603 | ||||||||
| 3,507 | Pierre & Vacances | 461,283 | ||||||||
| 5,966 | @ | Rhodia SA — Reg | 232,510 | |||||||
| 57,474 | Safran SA | 1,462,928 | ||||||||
| 21,592 | Scor SA | 590,543 | ||||||||
| 16,421 | Sequana Capital | 547,677 | ||||||||
| 11,482 | @ | Silicon-On-Insulator Technologies | 220,151 | |||||||
| 18,914 | Societe BIC SA | 1,470,596 | ||||||||
| 24,668 | Sodexho Alliance SA | 1,785,873 | ||||||||
| 14,898 | Technip SA | 1,339,150 | ||||||||
| 29,595 | Thales SA | 1,850,005 | ||||||||
| 108,206 | @ | Thomson | 1,896,577 | |||||||
| 2,950 | @ | UbiSoft Entertainment | 243,207 | |||||||
| 5,434 | Vallourec | 1,582,383 | ||||||||
| 43,074,081 | ||||||||||
| Germany: 8.7% | ||||||||||
| 13,550 | Aareal Bank AG | 702,214 | ||||||||
| 9,597 | Adidas AG | 637,765 | ||||||||
| 41,025 | @ | Aixtron AG | 482,648 | |||||||
| 56,185 | Altana AG | 1,362,531 | ||||||||
| 7,820 | AMB Generali Holding AG | 1,219,273 | ||||||||
| 18,426 | Carl Zeiss Meditec AG | 401,271 | ||||||||
| 26,015 | Celesio AG | 1,482,391 | ||||||||
| 5,960 | Continental AG | 900,620 | ||||||||
| 32,472 | Curanum AG | 422,224 | ||||||||
| 17,209 | Deutsche Beteiligungs AG | 598,912 | ||||||||
| 38,330 | Deutsche Euroshop AG | 1,541,160 | ||||||||
| 71,998 | Deutsche Lufthansa AG | 2,127,715 | ||||||||
| 56,252 | @ | Drillisch AG | 610,205 | |||||||
| 75,105 | EpCos. AG | 1,515,813 | ||||||||
| 3,086 | Fraport AG Frankfurt Airport Services Worldwide | 239,616 | ||||||||
| 53,164 | Freenet AG | 1,322,069 | ||||||||
| 2,870 | Fresenius AG | 223,648 | ||||||||
| 40,621 | Fresenius Medical Care AG & Co. KGaA | 2,137,339 | ||||||||
| 6,254 | @ | GEA Group AG | 233,845 | |||||||
| 4,463 | Gesco AG | 361,367 | ||||||||
| 46,605 | Gildemeister AG | 1,494,919 | ||||||||
| 20,880 | Hannover Rueckversicheru — Reg | 1,099,426 | ||||||||
| 8,449 | HeidelbergCement AG | 1,355,440 | ||||||||
| 28,710 | Heidelberger Druckmaschinen | 1,176,337 | ||||||||
| 2,049 | Hochtief AG | 281,146 | ||||||||
| 6,737 | Hypo Real Estate Holding AG | 400,388 | ||||||||
| 143,818 | @ | Infineon Technologies AG | 2,112,028 | |||||||
| 14,803 | @ | IWKA AG | 604,197 | |||||||
| 46,721 | @ | Jenoptik AG | 475,021 | |||||||
| 1,307 | K+S AG | 274,007 | ||||||||
| 4,250 | Kloeckner & Co. AG | 224,909 | ||||||||
| 39,367 | Kontron AG | 988,818 | ||||||||
| 1,973 | KWS Saat AG | 430,268 | ||||||||
| 20,416 | Leoni AG | 1,296,951 | ||||||||
| 4,757 | Linde AG | 603,064 | ||||||||
| 5,972 | MAN AG | 1,069,183 | ||||||||
| 4,627 | @ | Nordex AG | 237,721 | |||||||
| 8,763 | Pfleiderer AG | 231,091 | ||||||||
| 13,920 | Praktiker Bau- und Heimwerkermaerkte AG | 503,565 | ||||||||
| 11,668 | @ | Premiere AG | 238,062 | |||||||
| 4,551 | @ | Q-Cells AG | 582,795 | |||||||
| 7,168 | Salzgitter AG | 1,411,307 | ||||||||
| 4,225 | @ | SGL Carbon AG | 248,303 | |||||||
| 2,356 | Software AG | 220,889 | ||||||||
| 3,547 | Stada Arzneimittel AG | 225,503 | ||||||||
| 64,122 | Suedzucker AG | 1,454,502 | ||||||||
| 7,873 | @ | Symrise | 235,320 | |||||||
| 8,439 | @ | TUI AG | 248,107 | |||||||
| 11,062 | United Internet AG | 241,846 | ||||||||
| 13,937 | Vossloh AG | 1,644,565 | ||||||||
| 963 | Wacker Chemie AG | 235,667 | ||||||||
| 2,702 | Wincor Nixdorf AG | 269,143 | ||||||||
| 40,637,114 | ||||||||||
| Greece: 0.6% | ||||||||||
| 160,761 | Anek Lines SA | 529,475 | ||||||||
| 24,103 | @ | Corinth Pipeworks SA | 244,898 | |||||||
| 49,681 | Hellenic Technodomiki Tev SA | 757,264 | ||||||||
| 5,866 | Intralot SA — Integrated Lottery Systems & Services | 254,470 | ||||||||
| 14,713 | Sidenor Steel Production & Manufacturing Co. SA | 278,707 | ||||||||
| 10,300 | Tsakos Energy Navigation Ltd. | 716,777 | ||||||||
| 2,781,591 | ||||||||||
| Hong Kong: 1.9% | ||||||||||
| 36,800 | @ | CDC Corp. — Class A | 271,584 | |||||||
| 224,000 | Great Eagle Holding Co. | 931,158 | ||||||||
| 65,000 | Hengan International Group Co., Ltd. | 253,505 | ||||||||
| 572,800 | Hkr International Ltd. | 584,607 | ||||||||
| 229,500 | Hongkong & Shanghai Hotels | 424,885 | ||||||||
| 318,000 | Hopewell Holdings | 1,647,803 | ||||||||
| 420,000 | Hysan Development Co., Ltd. | 1,269,073 | ||||||||
| 884,000 | K Wah International Holdings Ltd. | 589,348 | ||||||||
167
Table of Contents
| Shares | Value | |||||||||
| Hong Kong (continued) | ||||||||||
| 15,600 | @ | Khd Humboldt Wedag International | $ | 699,192 | ||||||
| 203,000 | Mandarin Oriental International Ltd. | 508,086 | ||||||||
| 137,000 | Melco International Development | 259,747 | ||||||||
| 585,000 | Minmetals Resources Ltd. | 508,338 | ||||||||
| 136,000 | Shun TAK Holdings Ltd. | 214,711 | ||||||||
| 2,064,000 | Sinolink Worldwide Holdings | 701,227 | ||||||||
| 8,863,264 | ||||||||||
| Ireland: 0.5% | ||||||||||
| 28,815 | C&C Group PLC | 230,625 | ||||||||
| 32,933 | Iaws Group PLC | 775,203 | ||||||||
| 52,360 | Kerry Group PLC | 1,569,262 | ||||||||
| 2,575,090 | ||||||||||
| Italy: 5.0% | ||||||||||
| 57,295 | ACEA S.p.A. | 1,137,761 | ||||||||
| 383,976 | AEM S.p.A. | 1,619,447 | ||||||||
| 102,831 | Banca Popolare di Milano Scrl | 1,620,095 | ||||||||
| 56,407 | Benetton Group S.p.A. | 1,043,476 | ||||||||
| 24,544 | Biesse S.p.A. | 766,740 | ||||||||
| 14,167 | Buzzi Unicem S.p.A. | 402,784 | ||||||||
| 18,371 | Buzzi Unicem S.p.A. RNC | 353,254 | ||||||||
| 30,932 | Danieli & Co. S.p.A. RNC | 913,370 | ||||||||
| 109,178 | @ | DeA Capital S.p.A. | 387,313 | |||||||
| 548,656 | @ | Ducati Motor Holding S.p.A. | 1,580,765 | |||||||
| 11,214 | ERG S.p.A. | 232,186 | ||||||||
| 263,554 | IMMSI S.p.A. | 695,597 | ||||||||
| 71,753 | @ | Impregilo S.p.A. | 577,889 | |||||||
| 74,672 | Indesit Co. S.p.A. | 1,328,605 | ||||||||
| 26,464 | Italcementi S.p.A. RNC | 441,743 | ||||||||
| 6,869 | Italmobiliare S.p.A. | 576,787 | ||||||||
| 9,193 | Italmobiliare S.p.A. RNC | 1,132,181 | ||||||||
| 94,974 | Parmalat S.p.A | 351,823 | ||||||||
| 32,834 | Permasteelisa S.p.A. | 861,569 | ||||||||
| 179,180 | Piaggio & C S.p.A. | 806,619 | ||||||||
| 66,867 | Piccolo Credito Valtellinese Scarl | 928,387 | ||||||||
| 185,613 | @ | Pirelli & C S.p.A. | 237,843 | |||||||
| 149,925 | Recordati S.p.A. | 1,504,245 | ||||||||
| 200,125 | Safilo Group S.p.A. | 851,153 | ||||||||
| 283,191 | @ | Sorin S.p.A. | 719,187 | |||||||
| 222,287 | Terna S.p.A | 871,288 | ||||||||
| 359,994 | Unipol S.p.A. | 1,353,004 | ||||||||
| 23,295,111 | ||||||||||
| Japan: 15.2% | ||||||||||
| 75,000 | Aida Engineering Ltd. | 446,862 | ||||||||
| 4,200 | Alfresa Holdings Corp. | 244,131 | ||||||||
| 24,600 | AOKI Holdings, Inc. | 482,426 | ||||||||
| 35,800 | Aoyama Trading Co., Ltd. | 935,845 | ||||||||
| 24,000 | Arisawa Manufacturing Co., Ltd. | 241,376 | ||||||||
| 15,000 | Asics Corp. | 239,193 | ||||||||
| 321,000 | Atsugi Co., Ltd. | 447,043 | ||||||||
| 43,300 | Autobacs Seven Co., Ltd. | 1,006,265 | ||||||||
| 8,800 | Bank of Iwate Ltd. | 538,920 | ||||||||
| 164,000 | Bank of Nagoya Ltd. | 1,212,990 | ||||||||
| 12,100 | Bank of Okinawa Ltd. | 417,259 | ||||||||
| 81,500 | Best Denki Co., Ltd. | 590,948 | ||||||||
| 1,118,000 | Chugai Mining Co., Ltd. | 419,354 | ||||||||
| 116,000 | COMSYS Holdings Corp. | 1,137,258 | ||||||||
| 59,900 | Culture Convenience Club Co., Ltd. | 401,678 | ||||||||
| 68,000 | Daimei Telecom Engineering Corp. | 704,617 | ||||||||
| 36,000 | Dainippon Screen Manufacturing Co., Ltd. | 214,033 | ||||||||
| 145,000 | Daishi Bank Ltd. | 633,791 | ||||||||
| 36,000 | Daiwa Industries Ltd. | 250,686 | ||||||||
| 50 | Dena Co., Ltd. | 313,189 | ||||||||
| 59,000 | Denki Kogyo Co., Ltd. | 417,276 | ||||||||
| 7,460 | Diamond Lease Co., Ltd. | 258,439 | ||||||||
| 26,000 | Dowa Holdings Co., Ltd. | 304,603 | ||||||||
| 80,000 | Ehime Bank Ltd. | 289,895 | ||||||||
| 98,000 | Eighteenth Bank Ltd. | 393,806 | ||||||||
| 26,900 | Eiken Chemical Co., Ltd. | 230,623 | ||||||||
| 26,000 | Enplas Corp. | 259,797 | ||||||||
| 66,000 | Ezaki Glico Co., Ltd. | 694,177 | ||||||||
| 25,000 | Fuji Machine Manufacturing Co., Ltd. | 557,979 | ||||||||
| 191,000 | Fukuyama Transporting Co., Ltd. | 848,109 | ||||||||
| 48,500 | Glory Ltd. | 1,610,645 | ||||||||
| 101,000 | GS Yuasa Corp. | 223,542 | ||||||||
| 102,000 | @ | Haseko Corp. | 245,683 | |||||||
| 68,000 | Higashi-Nippon Bank Ltd. | 258,293 | ||||||||
| 86,000 | Higo Bank Ltd. | 597,338 | ||||||||
| 42,700 | Hitachi Capital Corp. | 567,426 | ||||||||
| 48,000 | Hitachi Kokusai Electric, Inc. | 628,142 | ||||||||
| 29,600 | Hitachi Software Engineering Co., Ltd. | 571,893 | ||||||||
| 143,000 | Hokkoku Bank Ltd. | 681,658 | ||||||||
| 76,900 | House Foods Corp. | 1,217,872 | ||||||||
| 115,000 | Hyakugo Bank Ltd. | 689,801 | ||||||||
| 64,400 | Ines Corp. | 321,016 | ||||||||
| 55,100 | Itochu Enex Co., Ltd. | 402,654 | ||||||||
| 110,000 | Itoham Foods, Inc. | 430,040 | ||||||||
| 68,600 | Itoki Corp. | 513,645 | ||||||||
| 154,000 | Jaccs Co., Ltd. | 403,183 | ||||||||
| 31,700 | Japan Digital Laboratory Co. | 476,743 | ||||||||
| 16,800 | Japan Electronic Materials | 184,070 | ||||||||
| 191,000 | Japan Radio Co., Ltd. | 704,800 | ||||||||
| 211,000 | Jeol Ltd. | 916,635 | ||||||||
| 167,000 | Juroku Bank Ltd. | 1,010,534 | ||||||||
| 76,000 | Kagoshima Bank Ltd. | 526,159 | ||||||||
| 33,000 | Kaken Pharmaceutical Co., Ltd. | 228,990 | ||||||||
| 45,000 | Kato Works Co., Ltd. | 271,958 | ||||||||
| 119,000 | Keiyo Bank Ltd. | 614,290 | ||||||||
| 61,400 | Keiyo Co., Ltd. | 363,466 | ||||||||
| 144 | Kenedix, Inc. | 317,764 | ||||||||
| 71,300 | Koa Corp. | 744,971 | ||||||||
| 7,200 | Kurita Water Industries Ltd. | 240,523 | ||||||||
| 12,100 | Kuroda Electric Co., Ltd. | 195,492 | ||||||||
| 21,900 | Macnica, Inc. | 495,966 | ||||||||
| 82,000 | Maeda Road Construction Co., Ltd. | 681,247 | ||||||||
| 27,000 | Makino Milling Machine Co. | 282,493 | ||||||||
| 78,000 | @ | Maruetsu, Inc. | 526,039 | |||||||
| 73,000 | Mie Bank Ltd. | 367,257 | ||||||||
| 219,000 | Mitsui Matsushima Co., Ltd. | 413,755 | ||||||||
| 150,000 | Mitsui Sugar Co., Ltd. | 629,504 | ||||||||
| 5,600 | Mitsumi Electric Co., Ltd. | 258,039 | ||||||||
| 9,000 | Mory Industries, Inc. | 32,436 | ||||||||
| 61,000 | Nanto Bank Ltd. | 319,346 | ||||||||
| 69,300 | NEC Networks & System Integration Corp. | 754,342 | ||||||||
| 217,000 | Nichirei Corp. | 927,785 | ||||||||
| 35,400 | Nifco, Inc. | 828,250 | ||||||||
| 95,000 | Nippon Chemical Industrial Co., Ltd. | 291,510 | ||||||||
| 52,000 | Nippon Pillar Packing Co., Ltd. | 390,403 | ||||||||
| 26,000 | Nippon Seiki Co., Ltd. | 605,138 | ||||||||
| 272,000 | Nippon Sheet Glass Co., Ltd. | 1,660,550 | ||||||||
| 61,000 | Nippon Shinyaku Co., Ltd. | 593,818 | ||||||||
| 200,000 | Nippon Synthetic Chemical Industry Co., Ltd. | 1,335,418 | ||||||||
| 127,600 | @ | NIS Group Co., Ltd. | 447,843 | |||||||
| 57,000 | Nissan Shatai Co., Ltd. | 459,227 | ||||||||
| 106,000 | Nisshinbo Industries, Inc. | 1,446,659 | ||||||||
| 5,000 | Nitori Co., Ltd. | 228,493 | ||||||||
| 104,000 | Nittetsu Mining Co., Ltd. | 795,759 | ||||||||
| 83,000 | Nitto Boseki Co., Ltd. | 248,268 | ||||||||
| 18,800 | Oiles Corp. | 406,445 | ||||||||
| 65,000 | Oita Bank Ltd. | 394,807 | ||||||||
| 102,000 | Okabe Co., Ltd. | 598,654 | ||||||||
| 15,000 | Okuma Corp. | 211,372 | ||||||||
| 70,000 | Pacific Industrial Co., Ltd. | 353,884 | ||||||||
168
Table of Contents
| Shares | Value | |||||||||
| Japan (continued) | ||||||||||
| 16,400 | Rock Field Co., Ltd. | $ | 256,644 | |||||||
| 20,900 | Ryosan Co., Ltd. | 520,979 | ||||||||
| 72,000 | Sakai Chemical Industry Co., Ltd. | 423,900 | ||||||||
| 100,000 | Sanden Corp. | 601,031 | ||||||||
| 117,000 | San-In Godo Bank Ltd. | 1,053,467 | ||||||||
| 46,000 | Sanken Electric Co., Ltd. | 263,408 | ||||||||
| 9,100 | Santen Pharmaceutical Co., Ltd. | 213,913 | ||||||||
| 176,000 | Seika Corp. | 478,802 | ||||||||
| 23,600 | Shima Seiki Manufacturing Ltd. | 1,220,994 | ||||||||
| 46,800 | Shimachu Co., Ltd. | 1,347,341 | ||||||||
| 51,100 | Shin-Etsu Polymer Co., Ltd. | 416,405 | ||||||||
| 70,700 | Shizuoka Gas Co., Ltd. | 349,288 | ||||||||
| 34,800 | Sho-Bond Corp. | 385,914 | ||||||||
| 46,500 | Sintokogio Ltd. | 670,733 | ||||||||
| 28,300 | Sugi Pharmacy Co., Ltd. | 819,697 | ||||||||
| 205,000 | Sumitomo Bakelite Co. Ltd. | 1,257,074 | ||||||||
| 91,000 | Sumitomo Forestry Co., Ltd. | 681,956 | ||||||||
| 2,900 | Sumitomo Titanium Corp. | 255,337 | ||||||||
| 41,000 | Taihei Dengyo Kaisha Ltd. | 285,781 | ||||||||
| 111,000 | Tamura Corp. | 548,912 | ||||||||
| 45,000 | Tecmo Ltd. | 575,278 | ||||||||
| 11,700 | Tocalo Co., Ltd. | 227,117 | ||||||||
| 44,000 | Tochigi Bank Ltd. | 255,430 | ||||||||
| 27,800 | Toho Pharmaceutical Co., Ltd. | 489,777 | ||||||||
| 15,000 | Tokuyama Corp. | 209,515 | ||||||||
| 10,900 | Tokyo Seimitsu Co., Ltd. | 257,101 | ||||||||
| 99,000 | Tokyo Style Co., Ltd. | 1,140,667 | ||||||||
| 21,000 | Tokyo Tatemono Co., Ltd. | 270,168 | ||||||||
| 115,000 | Toshiba Plant Systems & Services Corp. | 1,201,016 | ||||||||
| 167,000 | Toshiba Tec Corp. | 1,070,595 | ||||||||
| 25,000 | Towa Corp. | 246,391 | ||||||||
| 67,000 | Toyo Kohan Co., Ltd. | 374,793 | ||||||||
| 16,300 | Urban Corp. | 285,528 | ||||||||
| 111,000 | Wacoal Holdings Corp. | 1,353,112 | ||||||||
| 32,800 | Yamato Kogyo Co., Ltd. | 1,534,142 | ||||||||
| 18,000 | Yaskawa Electric Corp. | 242,148 | ||||||||
| 107,000 | Yuken Kogyo Co., Ltd. | 370,213 | ||||||||
| 8,900 | Zenrin Co., Ltd. | 265,403 | ||||||||
| 70,696,471 | ||||||||||
| Jersey: 0.1% | ||||||||||
| 7,854 | Randgold Resources Ltd. | 281,755 | ||||||||
| 281,755 | ||||||||||
| Liechtenstein: 0.0% | ||||||||||
| 841 | Liechtenstein Landesbank | 80,829 | ||||||||
| 80,829 | ||||||||||
| Luxembourg: 0.0% | ||||||||||
| 3,820 | Oriflame Cosmetics SA | 231,414 | ||||||||
| 231,414 | ||||||||||
| Netherlands: 1.7% | ||||||||||
| 9,123 | Aalberts Industries NV | 220,925 | ||||||||
| 4,921 | Boskalis Westminster | 300,547 | ||||||||
| 21,002 | Buhrmann NV | 235,109 | ||||||||
| 20,600 | Chicago Bridge & Iron Co. NV | 1,030,000 | ||||||||
| 11,100 | CNH Global NV | 727,938 | ||||||||
| 1,700 | @ | Core Laboratories NV | 248,098 | |||||||
| 52,243 | Hagemeyer NV | 356,209 | ||||||||
| 17,117 | Hunter Douglas NV | 1,601,097 | ||||||||
| 35,276 | Koninklijke BAM Groep NV | 935,661 | ||||||||
| 6,507 | Koninklijke DSM NV | 369,604 | ||||||||
| 2,983 | Nutreco Holding NV | 203,928 | ||||||||
| 17,259 | SBM Offshore NV | 666,022 | ||||||||
| 2,788 | @ | TomTom | 223,123 | |||||||
| 13,968 | Unit 4 Agresso NV | 455,465 | ||||||||
| 14,712 | Wolters Kluwer NV | 462,076 | ||||||||
| 8,035,802 | ||||||||||
| Norway: 1.0% | ||||||||||
| 44,000 | Aker Yards AS | 732,041 | ||||||||
| 35,500 | Cermaq ASA | 546,683 | ||||||||
| 28,600 | Leroy Seafood Group ASA | 608,916 | ||||||||
| 50,800 | Norwegian Property ASA | 636,547 | ||||||||
| 33,600 | @ | ODIM ASA | 590,627 | |||||||
| 13,400 | Tandberg ASA | 342,908 | ||||||||
| 70,600 | @ | TGS Nopec Geophysical Co. ASA | 1,189,677 | |||||||
| 4,647,399 | ||||||||||
| Papua New Guinea: 0.2% | ||||||||||
| 148,596 | @ | Lihir Gold Ltd. | 589,945 | |||||||
| 68,758 | Oil Search Ltd. | 275,191 | ||||||||
| 865,136 | ||||||||||
| Portugal: 0.7% | ||||||||||
| 128,936 | @ | Grupo Soares da Costa SGPS SA | 441,380 | |||||||
| 392,120 | Portucel Empresa Produtora de Pasta e Papel SA | 1,498,403 | ||||||||
| 52,996 | Semapa-Sociedade de Investimento e Gestao | 864,145 | ||||||||
| 82,056 | Sonae SGPS SA | 241,092 | ||||||||
| 3,045,020 | ||||||||||
| Singapore: 0.6% | ||||||||||
| 75,000 | Haw Par Corp., Ltd. | 409,524 | ||||||||
| 190,000 | Hong Leong Asia Ltd. | 504,167 | ||||||||
| 147,000 | Kim Eng Holdings Ltd. | 233,688 | ||||||||
| 360,000 | Metro Holdings Ltd. | 268,381 | ||||||||
| 173,000 | MobileOne Ltd. | 251,995 | ||||||||
| 261,000 | @ | Orchard Parade Holdings Ltd. | 310,987 | |||||||
| 1,343,000 | Sunningdale Tech Ltd. | 385,861 | ||||||||
| 25,800 | @ | Verigy Ltd. | 593,142 | |||||||
| 2,957,745 | ||||||||||
| South Korea: 4.9% | ||||||||||
| 126,214 | Asiana Airlines | 1,418,068 | ||||||||
| 9,040 | Binggrae Co., Ltd. | 367,205 | ||||||||
| 6,122 | Cheil Industries, Inc. | 405,618 | ||||||||
| 14,850 | ChungHo Comnet Co., Ltd. | 465,536 | ||||||||
| 686 | @ | CJ CheilJedang Corp. | 227,347 | |||||||
| 4,606 | Daewoong Pharmaceutical Co., Ltd. | 411,245 | ||||||||
| 16,030 | Daishin Securities Co., Ltd. | 503,004 | ||||||||
| 15,830 | Daou Technology, Inc. | 256,890 | ||||||||
| 1,073 | DC Chemical Co., Ltd. | 416,905 | ||||||||
| 2,311 | Dong-A Pharmaceutical Co., Ltd. | 223,412 | ||||||||
| 5,000 | Dongbu Insurance Co., Ltd. | 304,167 | ||||||||
| 5,380 | Dongkuk Steel Mill Co., Ltd. | 323,557 | ||||||||
| 1,336 | @ | Doosan Corp. | 392,869 | |||||||
| 65,492 | @ | EnE System, Inc. | 597,068 | |||||||
| 2,487 | GS Home Shopping, Inc. | 212,121 | ||||||||
| 2,540 | Hana Tour Service, Inc. | 229,045 | ||||||||
| 25,944 | @ | Hanarotelecom, Inc. | 254,868 | |||||||
| 11,110 | Hankook Tire Co., Ltd. | 235,086 | ||||||||
| 1,717 | Hyundai Department Store Co., Ltd. | 240,195 | ||||||||
| 57,850 | Jeonbuk Bank | 562,027 | ||||||||
| 3,012 | Korea Investment Holdings Co., Ltd. | 270,180 | ||||||||
| 2,946 | Korea Kumho Petrochemical | 285,775 | ||||||||
| 1,095 | Korea Zinc Co., Ltd. | 221,154 | ||||||||
| 1,049 | Korean Air Lines Co., Ltd. | 92,256 | ||||||||
| 13,050 | Kumho Electric, Inc. | 552,745 | ||||||||
| 8,177 | Kumho Industrial Co., Ltd. | 759,762 | ||||||||
| 13,235 | @ | LG Life Sciences Ltd. | 822,133 | |||||||
| 20,060 | LG Petrochemical Co., Ltd. | 1,185,887 | ||||||||
| 21,392 | @ | LG Telecom Ltd. | 233,382 | |||||||
| 361 | Lotte Chilsung Beverage Co., Ltd. | 511,063 | ||||||||
| 15,420 | @ | Lotte Midopa Co., Ltd. | 240,548 | |||||||
| 2,484 | Lotte Samkang Co., Ltd. | 707,928 | ||||||||
| 2,139 | LS Cable Ltd. | 330,412 | ||||||||
| 2,155 | Mirae Asset Securities Co., Ltd. | 411,360 | ||||||||
169
Table of Contents
| Shares | Value | |||||||||
| South Korea (continued) | ||||||||||
| 859,880 | @ | Mirae Corp. | $ | 535,761 | ||||||
| 3,624 | @ | NCSoft Corp. | 225,084 | |||||||
| 49,480 | @ | ON*Media Corp. | 339,608 | |||||||
| 27,860 | Poongsan Corp. | 786,926 | ||||||||
| 12,180 | Pusan Bank | 218,627 | ||||||||
| 2,037 | Samchully Co., Ltd. | 446,248 | ||||||||
| 6,980 | @ | Samho International Co., Ltd. | 234,210 | |||||||
| 7,500 | Samwhan Corp. | 251,369 | ||||||||
| 82,920 | Seoul Securities Co., Ltd. | 232,727 | ||||||||
| 4,979 | Sindo Ricoh Co., Ltd. | 401,381 | ||||||||
| 13,440 | SKC Co., Ltd. | 588,366 | ||||||||
| 24,000 | Solomon Mutual Savings Bank | 392,390 | ||||||||
| 2,044 | STX Corp. | 327,432 | ||||||||
| 499,000 | Stx Pan Ocean Co., Ltd. | 1,283,617 | ||||||||
| 3,025 | STX Shipbuilding Co., Ltd. | 246,274 | ||||||||
| 13,630 | Taegu Department Store Co. | 243,298 | ||||||||
| 135 | Taekwang Industrial Co., Ltd. | 213,148 | ||||||||
| 10,260 | Tong Yang Investment Bank | 236,003 | ||||||||
| 19,932 | @ | YedangOnline Corp. | 224,512 | |||||||
| 53,660 | Youngone Corp. | 562,271 | ||||||||
| 22,660,070 | ||||||||||
| Spain: 3.8% | ||||||||||
| 5,537 | Abengoa SA | 227,725 | ||||||||
| 1,352 | Acciona SA | 418,431 | ||||||||
| 55,184 | Acerinox SA | 1,631,313 | ||||||||
| 7,016 | Adolfo Dominguez | 315,080 | ||||||||
| 37,819 | Banco De Sabadell SA | 384,914 | ||||||||
| 28,688 | Bankinter SA | 425,946 | ||||||||
| 158,569 | Corp. Mapfre SA | 747,922 | ||||||||
| 16,598 | Corporacion Financiera Alba SA | 1,245,558 | ||||||||
| 31,119 | Duro Felguera SA | 401,638 | ||||||||
| 179 | Electrificaciones del Norte | 10,927 | ||||||||
| 8,143 | Gamesa Corp. Tecnologica SA | 414,434 | ||||||||
| 328,233 | Iberia Lineas Aereas de Espana | 1,674,551 | ||||||||
| 46,230 | @ | Inmobiliaria Colonial SA | 226,981 | |||||||
| 5,320 | Metrovacesa SA | 626,818 | ||||||||
| 57,623 | @ | Nh Hoteles SA | 1,290,435 | |||||||
| 13,770 | Obrascon Huarte Lain SA | 624,113 | ||||||||
| 62,165 | Promotora de Informaciones SA (PRISA) | 1,222,064 | ||||||||
| 5,608 | Sacyr Vallehermoso SA | 264,661 | ||||||||
| 44,015 | @ | Telecomunicaciones y Energia | 355,937 | |||||||
| 41,556 | Union Fenosa SA | 2,767,810 | ||||||||
| 145,223 | Uralita SA | 1,480,212 | ||||||||
| 34,272 | Viscofan SA | 885,185 | ||||||||
| 7,166 | Zardoya-Otis SA | 242,673 | ||||||||
| 17,885,328 | ||||||||||
| Sweden: 1.8% | ||||||||||
| 55,000 | @ | Bure Equity AB | 355,881 | |||||||
| 16,900 | Eniro AB | 216,956 | ||||||||
| 17,300 | Hexagon AB | 418,877 | ||||||||
| 27,700 | Holmen AB | 1,092,784 | ||||||||
| 80,200 | Kinnevik Investment AB | 1,998,419 | ||||||||
| 70,000 | Kungsleden AB | 1,002,336 | ||||||||
| 27,400 | @ | Lundin Petroleum AB | 330,442 | |||||||
| 16,000 | Meda AB | 242,343 | ||||||||
| 3,580 | Modern Times Group AB | 253,176 | ||||||||
| 19,600 | ORC Software AB | 525,669 | ||||||||
| 22,600 | @ | PA Resources AB | 250,663 | |||||||
| 81,200 | Peab AB | 739,310 | ||||||||
| 40,600 | @ | Peab AB | 345,148 | |||||||
| 12,100 | @ | SAS AB | 212,352 | |||||||
| 21,500 | Wallenstam Byggnads AB | 400,166 | ||||||||
| 8,384,522 | ||||||||||
| Switzerland: 6.6% | ||||||||||
| 6,825 | @ | Actelion Ltd. — Reg | 339,498 | |||||||
| 29,092 | Adecco SA | 1,754,001 | ||||||||
| 3,145 | Baloise Holding AG | 334,930 | ||||||||
| 1,528 | Banque Cantonale Vaudoise | 697,058 | ||||||||
| 1,266 | @ | Barry Callebaut AG | 1,017,655 | |||||||
| 6,205 | Bucher Industries AG | 1,477,525 | ||||||||
| 3,371 | Flughafen Zuerich AG | 1,364,485 | ||||||||
| 2,660 | Galenica AG | 1,289,483 | ||||||||
| 3,311 | Geberit AG — Reg | 447,862 | ||||||||
| 3,497 | Helvetia Holding AG | 1,271,052 | ||||||||
| 28,794 | Holcim Ltd. | 3,291,730 | ||||||||
| 2,712 | Inficon Holding AG — Reg | 499,875 | ||||||||
| 480 | Jelmoli Holding AG | 1,254,650 | ||||||||
| 11,847 | Julius Baer Holding AG — Reg | 1,028,919 | ||||||||
| 3,762 | Kuehne & Nagel International AG | 404,287 | ||||||||
| 6 | Lindt & Spruengli AG | 228,881 | ||||||||
| 13,076 | @ | Logitech International SA | 455,323 | |||||||
| 722 | @ | Meyer Burger Technology AG | 242,418 | |||||||
| 33,232 | @ | Micronas Semiconductor Hold | 444,162 | |||||||
| 1,624 | Nobel Biocare Holding AG | 474,101 | ||||||||
| 1,963 | @ | OC Oerlikon Corp. AG | 935,910 | |||||||
| 1,287 | Panalpina Welttransport Holding AG | 242,738 | ||||||||
| 21,269 | @ | PSP Swiss Property AG | 1,152,944 | |||||||
| 2,531 | Rieter Holding AG | 1,472,081 | ||||||||
| 3,591 | Schindler Holding AG — Reg | 248,295 | ||||||||
| 4,809 | Schindler Holding AG | 337,180 | ||||||||
| 248 | SGS SA | 325,775 | ||||||||
| 188 | Sulzer AG | 301,540 | ||||||||
| 6,830 | Swatch Group AG — BR | 2,186,557 | ||||||||
| 8,772 | @ | Swiss Life Holding | 2,428,245 | |||||||
| 5,995 | Syngenta AG | 1,450,153 | ||||||||
| 2,679 | Synthes, Inc. | 334,513 | ||||||||
| 4,216 | Valora Holding AG | 1,074,447 | ||||||||
| 30,808,273 | ||||||||||
| United Kingdom: 16.3% | ||||||||||
| 128,093 | @ | Acambis PLC | 358,382 | |||||||
| 19,763 | Aggreko PLC | 258,588 | ||||||||
| 22,226 | Amec PLC | 387,291 | ||||||||
| 419,305 | ARM Holdings PLC | 1,293,835 | ||||||||
| 102,626 | Ashtead Group PLC | 233,637 | ||||||||
| 32,973 | Axon Group PLC | 606,812 | ||||||||
| 108,773 | Balfour Beatty PLC | 1,126,665 | ||||||||
| 67,193 | Bellway PLC | 1,508,636 | ||||||||
| 11,736 | Bespak PLC | 161,058 | ||||||||
| 173,979 | Bodycote International | 1,065,459 | ||||||||
| 117,323 | Bovis Homes Group PLC | 1,625,001 | ||||||||
| 198,790 | Brit Insurance Holdings PLC | 1,345,740 | ||||||||
| 164,527 | @ | British Airways PLC | 1,529,958 | |||||||
| 106,063 | @ | BTG PLC | 255,359 | |||||||
| 14,681 | Bunzl PLC | 221,395 | ||||||||
| 16,947 | Burberry Group PLC | 217,445 | ||||||||
| 201,053 | Cable & Wireless PLC | 816,989 | ||||||||
| 9,428 | @ | Cairn Energy PLC | 462,985 | |||||||
| 34,492 | Capita Group PLC | 538,629 | ||||||||
| 44,437 | Capital & Regional PLC | 630,040 | ||||||||
| 13,587 | @ | Charter PLC | 307,437 | |||||||
| 238,242 | Chaucer Holdings PLC | 580,807 | ||||||||
| 20,589 | Chemring Group PLC | 949,429 | ||||||||
| 43,069 | @ | CLS Holdings PLC | 422,875 | |||||||
| 52,341 | Cobham PLC | 229,855 | ||||||||
| 133,312 | @ | Colt Telecom Group SA | 502,414 | |||||||
| 18,469 | Dairy Crest Group PLC | 231,749 | ||||||||
| 10,691 | @ | Dana Petroleum PLC | 287,454 | |||||||
| 28,793 | De La Rue PLC | 492,231 | ||||||||
| 100,686 | Debenhams PLC | 238,125 | ||||||||
| 182,718 | Dimension Data Holdings PLC | 237,738 | ||||||||
| 10,325 | Diploma PLC | 224,738 | ||||||||
| 17,896 | Drax Group PLC | 252,002 | ||||||||
| 208,422 | DS Smith PLC | 1,004,540 | ||||||||
| 18,791 | @ | easyJet PLC | 260,464 | |||||||
| 303,578 | Elementis PLC | 625,667 | ||||||||
| 230,709 | Enodis PLC | 1,007,576 | ||||||||
| 36,659 | Expro International Group | 935,582 | ||||||||
| 249,764 | F&C Asset Management PLC | 1,136,594 | ||||||||
| 19,756 | Firstgroup PLC | 328,023 | ||||||||
170
Table of Contents
| Shares | Value | |||||||||
| United Kingdom (continued) | ||||||||||
| 471,620 | Friends Provident PLC | $ | 1,810,466 | |||||||
| 75,161 | Galliford Try PLC | 246,316 | ||||||||
| 318,697 | Gcap Media PLC | 1,201,510 | ||||||||
| 29,725 | GKN PLC | 227,526 | ||||||||
| 4,305 | Go-Ahead Group PLC | 242,224 | ||||||||
| 89,172 | Greene King PLC | 1,685,673 | ||||||||
| 6,359 | Greggs PLC | 662,767 | ||||||||
| 54,521 | Group 4 Securicor PLC | 240,991 | ||||||||
| 109,249 | @ | Gyrus Group PLC | 973,592 | |||||||
| 83,844 | Hays PLC | 240,153 | ||||||||
| 25,099 | Inchcape PLC | 246,594 | ||||||||
| 143,383 | Informa PLC | 1,600,147 | ||||||||
| 11,123 | Intertek Group PLC | 238,565 | ||||||||
| 112,626 | @ | Invensys PLC | 768,894 | |||||||
| 138,273 | JJB Sports PLC | 499,624 | ||||||||
| 15,041 | Kelda Group PLC | 297,528 | ||||||||
| 40,559 | Keller Group PLC | 960,501 | ||||||||
| 18,524 | Kier Group PLC | 828,486 | ||||||||
| 525,330 | Kingston Communications PLC | 727,843 | ||||||||
| 18,140 | Laird Group PLC | 240,478 | ||||||||
| 79,637 | LogicaCMG PLC | 270,354 | ||||||||
| 11,634 | London Stock Exchange Group PLC | 407,713 | ||||||||
| 22,651 | Lonmin PLC | 1,627,536 | ||||||||
| 143,437 | Lookers PLC | 535,254 | ||||||||
| 57,931 | Luminar Group Holdings PLC | 768,240 | ||||||||
| 66,215 | Luminar PLC | 82,884 | ||||||||
| 151,712 | Marston’s PLC | 1,089,686 | ||||||||
| 33,304 | Meggitt PLC | 237,140 | ||||||||
| 117,418 | Melrose PLC | 466,943 | ||||||||
| 134,150 | Millennium & Copthorne Hotels PLC | 1,544,387 | ||||||||
| 49,518 | Misys PLC | 250,584 | ||||||||
| 18,996 | Mitchells & Butlers PLC | 263,841 | ||||||||
| 56,812 | Mondi PLC | 526,562 | ||||||||
| 33,255 | Morgan Sindall PLC | 1,138,943 | ||||||||
| 10,689 | Next PLC | 492,505 | ||||||||
| 517,244 | Northgate Information Solutions PLC | 849,017 | ||||||||
| 10,699 | Northgate PLC | 215,397 | ||||||||
| 421,894 | Pendragon PLC | 592,216 | ||||||||
| 121,478 | Pennon Group PLC | 1,590,654 | ||||||||
| 100,757 | Persimmon PLC | 2,204,810 | ||||||||
| 37,541 | Petrofac Ltd. | 403,677 | ||||||||
| 29,235 | Phoenix IT Group Ltd. | 238,899 | ||||||||
| 62,484 | @ | Premier Oil PLC | 1,616,137 | |||||||
| 67,124 | Punch Taverns PLC | 1,407,433 | ||||||||
| 9,663 | @ | QXL Ricardo PLC | 263,520 | |||||||
| 118,581 | Rentokil Initial PLC | 425,584 | ||||||||
| 25,286 | Resolution PLC | 384,446 | ||||||||
| 202,387 | Rok PLC | 788,132 | ||||||||
| 10,095 | Rotork PLC | 230,717 | ||||||||
| 43,085 | Sage Group PLC | 217,417 | ||||||||
| 58,352 | Schroders PLC | 1,875,355 | ||||||||
| 54,106 | Schroders PLC — Non Voting | 1,517,858 | ||||||||
| 114,817 | @ | SCI Entertainment Group PLC | 885,745 | |||||||
| 19,208 | Severfield-Rowen PLC | 244,400 | ||||||||
| 246,567 | Shanks Group PLC | 1,234,131 | ||||||||
| 45,928 | St Ives Group PLC | 272,752 | ||||||||
| 209,854 | Stagecoach Group PLC | 1,185,246 | ||||||||
| 24,951 | Tate & Lyle PLC | 226,421 | ||||||||
| 237,699 | Taylor Woodrow PLC | 1,229,660 | ||||||||
| 41,123 | Telent PLC | 445,920 | ||||||||
| 51,671 | Tomkins PLC | 239,448 | ||||||||
| 38,661 | Travis Perkins PLC | 1,173,441 | ||||||||
| 51,340 | Tullow Oil PLC | 682,960 | ||||||||
| 21,804 | @ | UK Coal PLC | 232,000 | |||||||
| 31,142 | Vedanta Resources PLC | 1,430,367 | ||||||||
| 18,553 | Venture Production PLC | 306,884 | ||||||||
| 94,553 | Weir Group PLC | 1,748,641 | ||||||||
| 10,847 | Whitbread PLC | 400,665 | ||||||||
| 55,103 | Yell Group PLC | 522,510 | ||||||||
| 75,824,114 | ||||||||||
| United States: 0.3% | ||||||||||
| 53,900 | Virgin Media, Inc. | 1,191,730 | ||||||||
| 1,191,730 | ||||||||||
| Total Common Stock (Cost $419,807,949) | 442,890,179 | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 2.5% | ||||||||||
| Canada: 0.0% | ||||||||||
| 13,800 | SWA Real Estate Investment Trust Ltd. | 10,212 | ||||||||
| 10,212 | ||||||||||
| France: 0.5% | ||||||||||
| 1,646 | Fonciere Des Regions | 240,969 | ||||||||
| 2,753 | Gecina SA | 472,046 | ||||||||
| 5,694 | Unibail-Rodamco | 1,422,022 | ||||||||
| 2,135,037 | ||||||||||
| Hong Kong: 0.1% | ||||||||||
| 1,512,000 | @ | Prosperity Real Estate Investment Trust | 313,266 | |||||||
| 313,266 | ||||||||||
| Japan: 0.1% | ||||||||||
| 34 | DA Office Investment Corp. | 225,727 | ||||||||
| 32 | Japan Retail Fund Investment Corp. | 237,633 | ||||||||
| 28 | Japan Single-Residence REIT, Inc. | 108,332 | ||||||||
| 571,692 | ||||||||||
| Netherlands: 0.7% | ||||||||||
| 22,900 | Nieuwe Steen Investments Funds NV | 645,415 | ||||||||
| 15,854 | Vastned Retail NV | 1,364,423 | ||||||||
| 9,773 | Wereldhave NV | 1,167,411 | ||||||||
| 3,177,249 | ||||||||||
| Singapore: 0.1% | ||||||||||
| 117,000 | @ | CapitaCommercial Trust | 219,084 | |||||||
| 352,000 | @ | Macquarie MEAG Prime Real Estate Investment Trust | 292,752 | |||||||
| 511,836 | ||||||||||
| United Kingdom: 1.0% | ||||||||||
| 51,867 | Hammerson PLC | 1,202,502 | ||||||||
| 82,978 | Liberty International PLC | 2,069,390 | ||||||||
| 112,568 | Segro PLC | 1,095,830 | ||||||||
| 60,596 | Workspace Group PLC | 428,208 | ||||||||
| 4,795,930 | ||||||||||
| Total Real Estate Investment Trusts (Cost $12,094,406) | 11,515,222 | |||||||||
| EXCHANGE-TRADED FUNDS: 1.0% | ||||||||||
| United States: 1.0% | ||||||||||
| 53,500 | S | iShares MSCI EAFE Index Fund | 4,606,350 | |||||||
| Total Exchange-Traded Funds (Cost $4,461,803) | 4,606,350 | |||||||||
171
Table of Contents
| Shares | Value | |||||||||
| MUTUAL FUNDS: 0.4% | ||||||||||
| Australia: 0.2% | ||||||||||
| 460,539 | ** | ING Office Fund | $ | 776,521 | ||||||
| United Kingdom: 0.2% | ||||||||||
| 19,830 | Caledonia Investments PLC | 841,476 | ||||||||
| Total Mutual Funds (Cost $1,513,829) | 1,617,997 | |||||||||
| PREFERRED STOCK: 0.9% | ||||||||||
| Germany: 0.2% | ||||||||||
| 8,061 | Draegerwerk AG | 639,415 | ||||||||
| 2,799 | Fresenius AG | 222,157 | ||||||||
| 861,572 | ||||||||||
| Italy: 0.7% | ||||||||||
| 40,306 | @ | Instituto Finanziario Industriale S.p.A. | 1,685,235 | |||||||
| 479,373 | Unipol S.p.A. | 1,719,526 | ||||||||
| 3,404,761 | ||||||||||
| Total Preferred Stock (Cost $4,172,159) | 4,266,333 | |||||||||
| RIGHTS: 0.0% | ||||||||||
| South Korea: 0.0% | ||||||||||
| 1,877 | Hyundai Securities Co. | 9,899 | ||||||||
| 9,899 | ||||||||||
| Spain: 0.0% | ||||||||||
| 5,320 | Metrovacesa SA | 617 | ||||||||
| 44,015 | Telecomunicaciones y Energia | 3,825 | ||||||||
| 4,442 | ||||||||||
| Sweden: 0.0% | ||||||||||
| 16,900 | Eniro AB | 4,869 | ||||||||
| 4,869 | ||||||||||
| Total Rights (Cost $—) | 19,210 | |||||||||
Total Investments in Securities (Cost $442,050,146)* | 99.8 | % | $ | 464,915,291 | ||||||||
Other Assets and Liabilities-Net | 0.2 | 871,488 | ||||||||||
Net Assets | 100.0 | % | $ | 465,786,779 | ||||||||
| @ | Non-income producing security | |
| # | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| S | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. | |
| ** | Investment in affiliate | |
| * | Cost for federal income tax purposes is $447,847,007. Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 33,589,876 | ||
| Gross Unrealized Depreciation | (16,521,592 | ) | ||
| Net Unrealized Appreciation | $ | 17,068,284 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Advertising | 0.3 | % | ||
| Aerospace/ Defense | 0.9 | |||
| Agriculture | 0.1 | |||
| Airlines | 2.2 | |||
| Apparel | 1.3 | |||
| Auto Manufacturers | 0.1 | |||
| Auto Parts & Equipment | 1.2 | |||
| Banks | 4.1 | |||
| Beverages | 0.8 | |||
| Building Materials | 3.5 | |||
| Chemicals | 3.0 | |||
| Closed-End Funds | 0.2 | |||
| Coal | 0.2 | |||
| Commercial Services | 1.7 | |||
| Computers | 1.1 | |||
| Cosmetics/ Personal Care | 0.0 | |||
| Distribution/ Wholesale | 0.7 | |||
| Diversified Financial Services | 2.8 | |||
| Electric | 1.8 | |||
| Electrical Components & Equipment | 1.7 | |||
| Electronics | 1.9 | |||
| Energy — Alternate Sources | 0.1 | |||
| Engineering & Construction | 4.9 | |||
| Entertainment | 0.1 | |||
| Environmental Control | 0.3 | |||
| Food | 4.2 | |||
| Food Service | 0.4 | |||
| Forest Products & Paper | 1.4 | |||
| Gas | 0.2 | |||
| Hand/ Machine Tools | 0.6 | |||
| Healthcare — Products | 1.0 | |||
| Healthcare — Services | 0.8 | |||
| Holding Companies — Diversified | 2.0 | |||
| Home Builders | 1.7 | |||
| Home Furnishings | 0.7 | |||
| Household Products/ Wares | 0.6 | |||
| Housewares | 0.3 | |||
| Insurance | 4.4 | |||
| Internet | 1.0 | |||
| Investment Companies | 1.7 | |||
| Iron/ Steel | 1.6 | |||
| Leisure Time | 0.6 | |||
| Lodging | 1.5 | |||
| Machinery — Construction & Mining | 0.4 | |||
| Machinery — Diversified | 3.0 | |||
| Media | 2.4 | |||
| Metal Fabricate/ Hardware | 0.7 | |||
| Mining | 4.2 | |||
| Miscellaneous Manufacturing | 2.2 | |||
| Office Furnishings | 0.1 | |||
| Office/ Business Equipment | 0.1 | |||
| Oil & Gas | 2.5 | |||
| Oil & Gas Services | 1.9 | |||
| Pharmaceuticals | 2.4 | |||
| Pipelines | 0.1 | |||
| Real Estate | 4.7 | |||
| Real Estate Investment Trusts: Apartments | 0.0 | |||
| Real Estate Investment Trusts: Diversified | 1.9 | |||
| Real Estate Investment Trusts: Office Property | 0.2 | |||
| Real Estate Investment Trusts: Shopping Centers | 0.4 | |||
| Retail | 4.2 | |||
| Semiconductors | 1.8 | |||
| Shipbuilding | 0.2 | |||
| Software | 0.9 | |||
| Storage/ Warehousing | 0.1 | |||
| Telecommunications | 2.4 | |||
| Textiles | 0.4 | |||
| Toys/ Games/ Hobbies | 0.1 | |||
| Transportation | 1.3 | |||
| Venture Capital | 0.1 | |||
| Water | 0.4 | |||
172
Table of Contents
| Percentage of | ||||
| Industry | Net Assets | |||
| Other Long-Term Investments | 1.0 | % | ||
| Other Assets and Liabilities — Net | 0.2 | |||
Net Assets | 100.0 | % | ||
173
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 98.9% | ||||||||||
| Argentina: 2.1% | ||||||||||
| 295,660 | @,L | Telecom Argentina SA ADR | $ | 7,098,797 | ||||||
| 7,098,797 | ||||||||||
| Brazil: 19.1% | ||||||||||
| 105,898,352 | AES Tiete SA | 3,934,512 | ||||||||
| 64,080 | L | Brasil Telecom Participacoes SA ADR | 4,766,911 | |||||||
| 1,197,927 | Braskem SA | 11,351,806 | ||||||||
| 472,200 | L | Centrais Eletricas Brasileiras SA ADR | 7,328,497 | |||||||
| 137,704 | Cia de Saneamento Basico do Estado de Sao Paulo | 3,590,099 | ||||||||
| 3,004,200 | Contax Participacoes SA | 4,756,310 | ||||||||
| 64,500 | L | Contax Participacoes SA ADR | 101,588 | |||||||
| 244,800 | @ | Marfrig Frigorificos e Comercio de Alimentos SA | 2,553,168 | |||||||
| 386,900 | @ | Sul America SA | 6,990,647 | |||||||
| 224,680 | L | Tele Norte Leste Participacoes SA ADR | 4,898,024 | |||||||
| 99,900 | L | Tim Participacoes SA ADR | 4,635,360 | |||||||
| 1,416,788 | @,L | Vivo Participacoes SA ADR | 8,344,881 | |||||||
| 63,251,803 | ||||||||||
| Chile: 2.6% | ||||||||||
| 218,860 | AFP Provida SA ADR | 8,688,742 | ||||||||
| 8,688,742 | ||||||||||
| China: 3.6% | ||||||||||
| 6,233,000 | Weiqiao Textile Co. | 11,744,330 | ||||||||
| 11,744,330 | ||||||||||
| Czech Republic: 2.0% | ||||||||||
| 211,508 | Telefonica O2 Czech Republic AS | 6,546,568 | ||||||||
| 6,546,568 | ||||||||||
| Estonia: 0.8% | ||||||||||
| 77,771 | As Eesti Telekom GDR | 2,615,999 | ||||||||
| 2,615,999 | ||||||||||
| Greece: 1.3% | ||||||||||
| 225,400 | Hellenic Telecommunications Organization SA ADR | 4,178,916 | ||||||||
| 4,178,916 | ||||||||||
| Hong Kong: 6.5% | ||||||||||
| 1,288,000 | Chaoda Modern Agriculture | 1,175,484 | ||||||||
| 837,500 | Dickson Concepts International Ltd. | 698,074 | ||||||||
| 12,162,000 | First Pacific Co. | 9,306,387 | ||||||||
| 8,436,000 | Fountain SET Holdings | 2,503,506 | ||||||||
| 9,690,000 | SCMP Group Ltd. | 3,125,706 | ||||||||
| 3,826,000 | SmarTone Telecommunications Holding Ltd. | 4,687,901 | ||||||||
| 21,497,058 | ||||||||||
| Hungary: 2.5% | ||||||||||
| 1,543,179 | Magyar Telekom Telecommunications PLC | 8,321,325 | ||||||||
| 8,321,325 | ||||||||||
| Indonesia: 0.7% | ||||||||||
| 2,178,000 | Gudang Garam Tbk PT | 2,416,906 | ||||||||
| 2,416,906 | ||||||||||
| Israel: 4.6% | ||||||||||
| 3,407,930 | Bezeq Israeli Telecommunication Corp., Ltd. | 6,070,116 | ||||||||
| 326,259 | Partner Communications | 6,190,498 | ||||||||
| 378,310 | @,L | Taro Pharmaceuticals Industries | 2,790,036 | |||||||
| 15,050,650 | ||||||||||
| Malaysia: 1.9% | ||||||||||
| 3,856,014 | @ | Proton Holdings Bhd | 6,115,156 | |||||||
| 6,115,156 | ||||||||||
| Mexico: 3.1% | ||||||||||
| 546,999 | Alfa SA de CV | 3,693,173 | ||||||||
| 178,790 | Telefonos de Mexico SA de CV ADR | 6,538,350 | ||||||||
| 10,231,523 | ||||||||||
| Pakistan: 0.6% | ||||||||||
| 968,500 | Nishat Mills Ltd. | 1,836,865 | ||||||||
| 1,836,865 | ||||||||||
| Panama: 2.9% | ||||||||||
| 499,400 | L | Banco Latinoamericano de Exportaciones SA | 9,723,318 | |||||||
| 9,723,318 | ||||||||||
| Singapore: 0.5% | ||||||||||
| 1,219,500 | MobileOne Ltd. | 1,776,348 | ||||||||
| 1,776,348 | ||||||||||
| South Africa: 2.6% | ||||||||||
| 906,330 | JD Group Ltd. | 8,698,059 | ||||||||
| 8,698,059 | ||||||||||
| South Korea: 21.9% | ||||||||||
| 636,980 | Daeduck Electronics Co., Ltd. | 4,862,504 | ||||||||
| 212,390 | Hyundai Motor Co. | 8,099,918 | ||||||||
| 89,960 | Korea Electric Power Corp. | 3,976,832 | ||||||||
| 194,370 | KT Corp. | 9,232,855 | ||||||||
| 169,850 | KT Freetel Co., Ltd. | 6,259,806 | ||||||||
| 260,920 | L | Kumho Tire Co., Inc. | 4,150,155 | |||||||
| 154,260 | LG Chemical Ltd. | 7,722,086 | ||||||||
| 4,872 | Lotte Chilsung Beverage Co., Ltd. | 6,897,227 | ||||||||
| 15,035 | Samsung Electronics Co., Ltd. | 9,270,552 | ||||||||
| 390,550 | L | SK Telecom Co., Ltd. ADR | 12,032,846 | |||||||
| 72,504,781 | ||||||||||
| Taiwan: 12.9% | ||||||||||
| 10,072,612 | China Motor Corp. | 9,326,588 | ||||||||
| 214,302 | Chunghwa Telecom Co., Ltd. | 412,497 | ||||||||
| 241,252 | Chunghwa Telecom Co., Ltd. ADR | 4,632,038 | ||||||||
| 4,939,000 | Far EasTone Telecommunications Co., Ltd. | 6,139,213 | ||||||||
| 6,696,000 | @ | Taishin Financial Holdings Co., Ltd. | 3,310,680 | |||||||
| 565,035 | L | United Microelectron ADR | 2,130,182 | |||||||
| 7,981,985 | United Microelectronics Corp. | 5,235,098 | ||||||||
| 8,482,000 | Walsin Lihwa Corp. | 4,609,885 | ||||||||
| 9,644,000 | Winbond Electronics Corp. | 3,241,770 | ||||||||
| 1,899,718 | Yageo Corp. GDR | 3,708,629 | ||||||||
| 42,746,580 | ||||||||||
| Thailand: 6.7% | ||||||||||
| 1,450,200 | Bangkok Bank PCL | 5,469,786 | ||||||||
| 55,057,100 | Charoen Pokphand Foods PCL | 8,128,594 | ||||||||
174
Table of Contents
| Shares | Value | |||||||||
| Thailand (continued) | ||||||||||
| 10,648,800 | Siam City Bank Public Co. | $ | 5,548,885 | |||||||
| 4,078,500 | Thai Union Frozen Products Public Co., Ltd. | 2,898,247 | ||||||||
| 22,045,512 | ||||||||||
| Total Common Stock (Cost $269,428,117) | 327,089,236 | |||||||||
| Principal Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 16.1% | ||||||||||
| U.S. Government Agency Obligations: 0.9% | ||||||||||
| $ | 2,738,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 2,737,681 | |||||
| Total U.S. Government Agency Obligations (Cost $2,737,681) | 2,737,681 | |||||||||
| Securities Lending CollateralCC: 15.2% | ||||||||||
| 50,315,176 | Bank of New York Mellon Corp. Institutional Cash Reserves | 50,315,176 | ||||||||
| Total Securities Lending Collateral (Cost $50,315,176) | 50,315,176 | |||||||||
| Total Short-Term Investments (Cost $53,052,857) | 53,052,857 | |||||||||
Total Investments in Securities (Cost $322,480,974)* | 115.0 | % | $ | 380,142,093 | ||||||||
Other Assets and Liabilities-Net | (15.0 | ) | (49,497,614 | ) | ||||||||
Net Assets | 100.0 | % | $ | 330,644,479 | ||||||||
| @ | Non-income producing security | |
| ADR | American Depositary Receipt | |
| GDR | Global Depositary Receipt | |
| cc | Securities purchased with cash collateral for securities loaned. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $322,541,358. Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 62,768,332 | ||
| Gross Unrealized Depreciation | (5,167,597 | ) | ||
| Net Unrealized Appreciation | $ | 57,600,735 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Agriculture | 3.5 | % | ||
| Auto Manufacturers | 7.1 | |||
| Auto Parts & Equipment | 1.3 | |||
| Banks | 7.3 | |||
| Beverages | 2.1 | |||
| Chemicals | 5.8 | |||
| Commercial Services | 1.5 | |||
| Electric | 4.6 | |||
| Electrical Components & Equipment | 1.4 | |||
| Electronics | 2.6 | |||
| Food | 1.7 | |||
| Holding Companies — Diversified | 3.9 | |||
| Insurance | 2.1 | |||
| Investment Companies | 2.6 | |||
| Media | 0.9 | |||
| Pharmaceuticals | 0.8 | |||
| Retail | 2.8 | |||
| Semiconductors | 6.0 | |||
| Telecommunications: Cellular Telecom | 15.1 | |||
| Telecommunications: Telecom Services | 3.5 | |||
| Telecommunications: Telephone — Integrated | 16.3 | |||
| Textiles | 4.9 | |||
| Water | 1.1 | |||
| Short-Term Investments | 16.1 | |||
| Other Assets and Liabilities — Net | (15.0 | ) | ||
Net Assets | 100.0 | % | ||
175
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 85.6% | ||||||||||
| Australia: 4.8% | ||||||||||
| 326,931 | BHP Billiton Ltd. | $ | 14,236,150 | |||||||
| 5,192 | L | BHP Billiton Ltd. ADR | 453,054 | |||||||
| 78,492 | Brambles Ltd. | 1,044,812 | ||||||||
| 87,067 | John Fairfax Holdings Ltd. | 386,664 | ||||||||
| 1,688,737 | Macquarie Airports Management Ltd. | 6,940,178 | ||||||||
| 195,896 | Newcrest Mining Ltd. | 5,971,592 | ||||||||
| 22,034 | Publishing & Broadcasting Ltd. | 430,118 | ||||||||
| 59,912 | Rio Tinto Ltd. | 6,218,837 | ||||||||
| 35,681,405 | ||||||||||
| Austria: 3.6% | ||||||||||
| 44,734 | Erste Bank der Oesterreichischen Sparkassen AG | 3,641,882 | ||||||||
| 4,643 | Flughafen Wien AG | 550,996 | ||||||||
| 183,153 | @ | Immoeast Immobilien Anlagen AG | 2,238,719 | |||||||
| 10,543 | Oesterreichische Elektrizitaetswirtschafts AG | 698,661 | ||||||||
| 138,401 | OMV AG | 10,391,593 | ||||||||
| 29,504 | Raiffeisen International Bank Holding AG | 4,908,316 | ||||||||
| 39,454 | Telekom Austria AG | 1,136,056 | ||||||||
| 20,135 | Wiener Staedtische Allgemeine Versicherung AG | 1,486,740 | ||||||||
| 30,299 | S | Wienerberger AG | 1,892,917 | |||||||
| 26,945,880 | ||||||||||
| Belgium: 1.4% | ||||||||||
| 44,523 | Fortis | 1,429,865 | ||||||||
| 2,814 | Groupe Bruxelles Lambert SA | 360,531 | ||||||||
| 40,705 | Kbc Ancora | 4,607,966 | ||||||||
| 28,137 | S | KBC Groep NV | 3,954,684 | |||||||
| 10,353,046 | ||||||||||
| Bermuda: 0.3% | ||||||||||
| 16,828 | @,L | Central European Media Enterprises Ltd. | 1,931,013 | |||||||
| 1,931,013 | ||||||||||
| Brazil: 1.2% | ||||||||||
| 77,769 | @ | Bovespa Holding SA | 1,480,651 | |||||||
| 211,934 | Cia Vale do Rio Doce | 6,686,272 | ||||||||
| 29,560 | Uniao de Bancos Brasileiros SA | 467,658 | ||||||||
| 780 | L | Uniao de Bancos Brasileiros SA GDR | 123,271 | |||||||
| 8,757,852 | ||||||||||
| Bulgaria: 0.0% | ||||||||||
| 60,720 | @ | Bulgaria Compensation Notes | 20,566 | |||||||
| 25,950 | @ | Bulgaria Housing Compensation Notes | 9,033 | |||||||
| 117,641 | @ | Bulgaria Reg Compensation Vouchers | 38,408 | |||||||
| 68,007 | ||||||||||
| Canada: 2.5% | ||||||||||
| 36,703 | Cameco Corp. | 1,808,632 | ||||||||
| 4,607 | Canadian Natural Resources Ltd. | 383,132 | ||||||||
| 16,983 | Imperial Oil Ltd. | 924,973 | ||||||||
| 279,895 | @ | Ivanhoe Mines Ltd. | 3,848,871 | |||||||
| 20,272 | @ | Opti Canada, Inc. | 408,809 | |||||||
| 39,283 | Potash Corp. of Saskatchewan | 4,890,362 | ||||||||
| 16,503 | @ | Research In Motion Ltd. | 2,054,789 | |||||||
| 26,891 | Suncor Energy, Inc. | 2,944,873 | ||||||||
| 36,061 | Talisman Energy, Inc. | 785,619 | ||||||||
| 59,492 | @ | UTS Energy Corp. | 384,795 | |||||||
| 18,434,855 | ||||||||||
| Chile: 0.1% | ||||||||||
| 3,779 | L | Sociedad Quimica y Minera de Chile SA ADR | 725,568 | |||||||
| 725,568 | ||||||||||
| China: 0.8% | ||||||||||
| 18,622 | @,# | Alibaba.com Ltd. | 32,437 | |||||||
| 2,720,010 | Beijing Capital International Airport Co., Ltd. | 5,417,119 | ||||||||
| 140,555 | Weiqiao Textile Co. | 264,836 | ||||||||
| 337,572 | Wumart Stores, Inc. | 307,072 | ||||||||
| 6,021,464 | ||||||||||
| Cyprus: 0.7% | ||||||||||
| 9,216 | @,# | AFI Development PLC GDR | 96,287 | |||||||
| 274,940 | Bank of Cyprus Public Co., Ltd. | 5,367,134 | ||||||||
| 5,463,421 | ||||||||||
| Czech Republic: 2.1% | ||||||||||
| 68,826 | S | Komercni Banka A/S | 15,879,758 | |||||||
| 15,879,758 | ||||||||||
| Denmark: 0.6% | ||||||||||
| 3,115 | ALK-Abello A/ S | 673,746 | ||||||||
| 2,668 | Carlsberg A/ S | 360,884 | ||||||||
| 4,784 | Flsmidth & Co. A/ S | 521,431 | ||||||||
| 11,404 | Novo-Nordisk A/ S | 1,421,263 | ||||||||
| 2,046 | Rockwool International AS | 655,204 | ||||||||
| 6,369 | @ | Vestas Wind Systems A/ S | 571,385 | |||||||
| 4,203,913 | ||||||||||
| Finland: 3.0% | ||||||||||
| 9,496 | Elisa OYJ | 282,514 | ||||||||
| 106,979 | Fortum OYJ | 4,651,808 | ||||||||
| 30,177 | Kemira OYJ | 716,542 | ||||||||
| 6,134 | Kesko OYJ | 368,445 | ||||||||
| 5,007 | Metso OYJ | 305,700 | ||||||||
| 180,971 | S | Nokia OYJ | 7,187,306 | |||||||
| 6,054 | Nokian Renkaat OYJ | 229,237 | ||||||||
| 17,987 | OKO Bank | 387,468 | ||||||||
| 25,562 | Orion OYJ | 657,353 | ||||||||
| 15,402 | Outotec OYJ | 1,182,266 | ||||||||
| 98,449 | Ramirent OYJ | 2,199,449 | ||||||||
| 32,706 | Sanoma-WSOY OYJ | 946,000 | ||||||||
| 97,553 | YIT OYJ | 3,018,256 | ||||||||
| 22,132,344 | ||||||||||
| France: 8.8% | ||||||||||
| 4,126 | Accor SA | 395,291 | ||||||||
| 33,044 | ADP | 3,789,161 | ||||||||
| 24,783 | Air Liquide | 3,422,864 | ||||||||
| 6,545 | Alstom | 1,552,247 | ||||||||
| 18,562 | BNP Paribas | 2,057,253 | ||||||||
| 23,956 | Bouygues SA | 2,311,999 | ||||||||
| 6,250 | @ | Bureau Veritas SA | 361,954 | |||||||
| 16,197 | Cie de Saint-Gobain | 1,745,572 | ||||||||
| 17,253 | Credit Agricole SA | 683,539 | ||||||||
| 1,940 | EDF Energies Nouvelles SA | 155,888 | ||||||||
| 42,803 | Electricite de France | 5,148,966 | ||||||||
| 6,547 | Eurazeo | 979,161 | ||||||||
| 52,849 | France Telecom SA | 1,954,357 | ||||||||
| 3,253 | Hermes International | 428,765 | ||||||||
| 21,073 | JC Decaux SA | 779,191 | ||||||||
| 35,050 | Lafarge SA | 5,729,487 | ||||||||
| 51,740 | LVMH Moet Hennessy Louis Vuitton SA | 6,683,934 | ||||||||
| 10,854 | M6-Metropole Television | 322,109 | ||||||||
| 8,072 | Neuf Cegetel | 409,499 | ||||||||
176
Table of Contents
| Shares | Value | |||||||||
| France (continued) | ||||||||||
| 3,616 | Nexity | $ | 241,392 | |||||||
| 6,336 | S | Pernod-Ricard SA | 1,467,248 | |||||||
| 17,622 | PPR | 3,504,488 | ||||||||
| 4,248 | Remy Cointreau SA | 327,761 | ||||||||
| 7,333 | Renault SA | 1,238,540 | ||||||||
| 35,364 | Societe Television Francaise 1 | 983,834 | ||||||||
| 4,060 | Sodexho Alliance SA | 293,929 | ||||||||
| 66,328 | Suez SA | 4,327,352 | ||||||||
| 3,701 | Technip SA | 332,675 | ||||||||
| 106,854 | S | Total SA | 8,622,691 | |||||||
| 14,542 | Veolia Environnement | 1,301,920 | ||||||||
| 32,800 | Vinci SA | 2,706,584 | ||||||||
| 8,216 | Vivendi | 371,275 | ||||||||
| 1,802 | Wendel Investissement | 310,468 | ||||||||
| 64,941,394 | ||||||||||
| Germany: 6.8% | ||||||||||
| 3,261 | Adidas AG | 216,709 | ||||||||
| 5,561 | BASF AG | 772,016 | ||||||||
| 12,995 | Bayer AG | 1,085,226 | ||||||||
| 4,082 | Bilfinger Berger AG | 361,725 | ||||||||
| 3,681 | Celesio AG | 209,751 | ||||||||
| 152,075 | Commerzbank AG | 6,451,988 | ||||||||
| 3,543 | Continental AG | 535,385 | ||||||||
| 47,558 | DaimlerChrysler AG | 5,244,728 | ||||||||
| 11,157 | Deutsche Boerse AG | 1,791,128 | ||||||||
| 11,990 | Deutsche Post AG | 363,152 | ||||||||
| 9,772 | Deutsche Postbank AG | 713,609 | ||||||||
| 28,879 | E.ON AG | 5,652,530 | ||||||||
| 89,606 | Fraport AG Frankfurt Airport Services Worldwide | 6,957,569 | ||||||||
| 41,151 | Fresenius AG | 3,206,738 | ||||||||
| 60,636 | Fresenius Medical Care AG & Co. KGaA | 3,190,461 | ||||||||
| 25,092 | Henkel KGaA | 1,158,625 | ||||||||
| 24,197 | Hypo Real Estate Holding AG | 1,438,058 | ||||||||
| 23,011 | @,L | IKB Deutsche Industriebank AG | 475,961 | |||||||
| 22,573 | @ | KarstadtQuelle AG | 724,774 | |||||||
| 5,218 | Merck KGaA | 653,286 | ||||||||
| 9,072 | Praktiker Bau- und Heimwerkermaerkte AG | 328,186 | ||||||||
| 6,313 | Rheinmetall AG | 559,534 | ||||||||
| 80,932 | Rhoen Klinikum AG | 2,557,677 | ||||||||
| 11,757 | RWE AG | 1,603,725 | ||||||||
| 26,358 | Siemens AG | 3,599,206 | ||||||||
| 11,068 | @ | Tognum AG | 397,765 | |||||||
| 50,249,512 | ||||||||||
| Greece: 0.7% | ||||||||||
| 57,254 | Hellenic Telecommunications Organization SA | 2,102,959 | ||||||||
| 144,795 | Marfin Investment Group SA | 1,375,904 | ||||||||
| 379,881 | @ | Veterin SA | 1,401,450 | |||||||
| 4,880,313 | ||||||||||
| Guernsey: 0.0% | ||||||||||
| 8,878 | KKR Private Equity Investors LP | 174,009 | ||||||||
| 174,009 | ||||||||||
| Hong Kong: 2.5% | ||||||||||
| 830,069 | China Merchants Holdings International Co., Ltd. | 5,854,887 | ||||||||
| 92,983 | China Mobile Ltd. | 1,922,281 | ||||||||
| 899,346 | @ | Galaxy Entertainment Group Ltd. | 982,163 | |||||||
| 1,337,557 | GOME Electrical Appliances Holdings Ltd. | 3,008,158 | ||||||||
| 134,443 | @ | Hutchison Telecommunications International Ltd. | 191,894 | |||||||
| 847,827 | L | Melco International Development | 1,607,450 | |||||||
| 49,612 | @,L | Melco PBL Entertainment Macau Ltd. ADR | 788,831 | |||||||
| 2,534,558 | Shun TAK Holdings Ltd. | 4,001,448 | ||||||||
| 165,351 | Texwinca Holdings Ltd. | 145,803 | ||||||||
| 18,502,915 | ||||||||||
| Hungary: 3.4% | ||||||||||
| 673,561 | Magyar Telekom Telecommunications PLC | 3,632,061 | ||||||||
| 2,922 | Mol Magyar Olaj- es Gazipari Rt | 452,443 | ||||||||
| 377,588 | S | OTP Bank Nyrt | 20,542,833 | |||||||
| 3,242 | Richter Gedeon Nyrt | 706,562 | ||||||||
| 25,333,899 | ||||||||||
| India: 0.4% | ||||||||||
| 216,035 | X | Canara Bank | 1,612,152 | |||||||
| 11,848 | State Bank of India Ltd. GDR | 1,497,064 | ||||||||
| 3,109,216 | ||||||||||
| Indonesia: 0.1% | ||||||||||
| 687,400 | Semen Gresik Persero Tbk PT | 473,296 | ||||||||
| 473,296 | ||||||||||
| Ireland: 0.2% | ||||||||||
| 24,561 | CRH PLC | 947,458 | ||||||||
| 5,775 | Kingspan Group PLC | 137,802 | ||||||||
| 1,085,260 | ||||||||||
| Italy: 1.8% | ||||||||||
| 3,579 | Autogrill S.p.A. | 71,604 | ||||||||
| 90,506 | Banca Popolare di Milano Scrl | 1,425,916 | ||||||||
| 19,182 | Banca Popolare di Sondrio Scarl | 305,882 | ||||||||
| 12,866 | Banche Popolari Unite Scpa | 358,685 | ||||||||
| 14,713 | @ | Banco Popolare Scarl | 353,146 | |||||||
| 40,512 | Bulgari S.p.A. | 634,998 | ||||||||
| 63,286 | Buzzi Unicem S.p.A. | 1,799,293 | ||||||||
| 40,338 | Credito Emiliano S.p.A. | 548,132 | ||||||||
| 21,576 | Finmeccanica S.p.A. | 641,805 | ||||||||
| 46,112 | Geox S.p.A. | 1,105,776 | ||||||||
| 266,494 | Intesa Sanpaolo S.p.A. | 2,023,368 | ||||||||
| 14,645 | Italcementi S.p.A. | 337,354 | ||||||||
| 1,917 | Lottomatica S.p.A. | 68,611 | ||||||||
| 31,750 | Mediobanca S.p.A. | 755,021 | ||||||||
| 158,822 | Telecom Italia S.p.A. | 497,675 | ||||||||
| 293,701 | UniCredito Italiano S.p.A. | 2,526,535 | ||||||||
| 13,453,801 | ||||||||||
| Japan: 5.5% | ||||||||||
| 6,190 | Acom Co., Ltd. | 148,234 | ||||||||
| 6,625 | Aeon Credit Service Co., Ltd. | 101,922 | ||||||||
| 6,900 | L | Aiful Corp. | 162,827 | |||||||
| 6,601 | Aisin Seiki Co., Ltd. | 271,236 | ||||||||
| 80,000 | Bank of Yokohama Ltd. | 567,669 | ||||||||
| 36,305 | S | Canon, Inc. | 1,837,011 | |||||||
| 5,859 | Credit Saison Co., Ltd. | 186,823 | ||||||||
| 25,000 | Daihatsu Motor Co., Ltd. | 266,979 | ||||||||
| 14,500 | Daikin Industries Ltd. | 730,308 | ||||||||
| 14,608 | Daiwa Securities Group, Inc. | 140,778 | ||||||||
| 23,988 | Denso Corp. | 974,515 | ||||||||
| 182 | Dentsu, Inc. | 477,325 | ||||||||
| 107 | East Japan Railway Co. | 881,399 | ||||||||
| 8,200 | Eisai Co., Ltd. | 344,304 | ||||||||
| 7,000 | Fanuc Ltd. | 767,337 | ||||||||
| 91 | Fuji Television Network, Inc. | 183,775 | ||||||||
| 39,128 | S | Honda Motor Co., Ltd. | 1,465,221 | |||||||
| 21,000 | Hoya Corp. | 764,692 | ||||||||
| 8,600 | Ibiden Co., Ltd. | 728,980 | ||||||||
| 31,000 | Itochu Corp. | 391,732 | ||||||||
| 236 | Japan Tobacco, Inc. | 1,375,561 | ||||||||
| 5,068 | JFE Holdings, Inc. | 296,673 | ||||||||
177
Table of Contents
| Shares | Value | |||||||||
| Japan (continued) | ||||||||||
| 9,989 | JS Group Corp. | $ | 161,818 | |||||||
| 6,548 | JSR Corp. | 170,024 | ||||||||
| 91 | KDDI Corp. | 687,294 | ||||||||
| 19,126 | Koito Manufacturing Co., Ltd. | 266,145 | ||||||||
| 18,000 | Komatsu Ltd. | 603,480 | ||||||||
| 15,319 | Kubota Corp. | 128,609 | ||||||||
| 5,700 | Kyocera Corp. | 484,489 | ||||||||
| 10,193 | Makita Corp. | 491,066 | ||||||||
| 40,484 | Matsushita Electric Industrial Co., Ltd. | 773,072 | ||||||||
| 22,900 | Mitsubishi Corp. | 713,000 | ||||||||
| 23,000 | Mitsubishi Electric Corp. | 280,413 | ||||||||
| 106,340 | S | Mitsubishi UFJ Financial Group, Inc. | 1,064,053 | |||||||
| 29,000 | Mitsui & Co., Ltd. | 741,559 | ||||||||
| 7,723 | Mitsui Fudosan Co., Ltd. | 213,649 | ||||||||
| 94 | S | Mizuho Financial Group, Inc. | 528,322 | |||||||
| 22,000 | Nikon Corp. | 706,019 | ||||||||
| 7,001 | Nintendo Co., Ltd. | 4,446,186 | ||||||||
| 36,000 | Nippon Electric Glass Co., Ltd. | 611,878 | ||||||||
| 48 | Nippon Telegraph & Telephone Corp. | 219,679 | ||||||||
| 13,707 | Nissan Motor Co., Ltd. | 157,257 | ||||||||
| 15,302 | Nitto Denko Corp. | 747,038 | ||||||||
| 12,355 | Nomura Holdings, Inc. | 220,157 | ||||||||
| 42,000 | NSK Ltd. | 372,382 | ||||||||
| 278 | NTT DoCoMo, Inc. | 404,460 | ||||||||
| 3,167 | Olympus Corp. | 131,889 | ||||||||
| 6,592 | Promise Co., Ltd. | 198,282 | ||||||||
| 33,000 | Ricoh Co., Ltd. | 652,263 | ||||||||
| 8,486 | Seven & I Holdings Co., Ltd. | 219,122 | ||||||||
| 12,000 | Sharp Corp. | 189,287 | ||||||||
| 21,733 | Sony Corp. | 1,073,315 | ||||||||
| 24,599 | Stanley Electric Co., Ltd. | 547,060 | ||||||||
| 65,000 | Sumitomo Chemical Co., Ltd. | 577,856 | ||||||||
| 20,192 | Sumitomo Corp. | 351,824 | ||||||||
| 16,500 | Sumitomo Electric Industries Ltd. | 267,140 | ||||||||
| 41,992 | Sumitomo Heavy Industries | 554,750 | ||||||||
| 83,145 | Sumitomo Metal Industries Ltd. | 411,535 | ||||||||
| 35 | S | Sumitomo Mitsui Financial Group, Inc. | 286,696 | |||||||
| 32,200 | Suzuki Motor Corp. | 1,057,901 | ||||||||
| 5,800 | Takata Corp. | 207,142 | ||||||||
| 10,300 | Takeda Pharmaceutical Co., Ltd. | 643,384 | ||||||||
| 6,560 | Takefuji Corp. | 167,177 | ||||||||
| 30,000 | Toray Industries, Inc. | 231,592 | ||||||||
| 53,300 | S | Toyota Motor Corp. | 3,051,116 | |||||||
| 12,190 | Yamada Denki Co., Ltd. | 1,256,817 | ||||||||
| 9,201 | Yamaha Motor Co., Ltd. | 262,740 | ||||||||
| 4,846 | Yamato Holdings Co., Ltd. | 71,477 | ||||||||
| 17,101 | Yokogawa Electric Corp. | 215,465 | ||||||||
| 40,883,180 | ||||||||||
| Luxembourg: 0.6% | ||||||||||
| 21,050 | #,L | Evraz Group SA GDR | 1,589,275 | |||||||
| 25,244 | @,L | Millicom International Cellular SA | 2,965,665 | |||||||
| 4,058 | @ | TVSL SA | — | |||||||
| 4,554,940 | ||||||||||
| Mexico: 1.1% | ||||||||||
| 381,175 | America Movil SA de CV — Series L | 1,210,108 | ||||||||
| 7,138 | America Movil SA de CV ADR | 466,754 | ||||||||
| 92,118 | Controladora Comercial Mexicana SA de CV | 287,607 | ||||||||
| 270,698 | Corporacion Moctezuma | 873,088 | ||||||||
| 4,739 | @,L | Desarrollado ADR | 267,801 | |||||||
| 24,917 | Fomento Economico Mexicano SA de CV ADR | 887,294 | ||||||||
| 45,023 | Grupo Cementos Chihuahua | 252,044 | ||||||||
| 437,516 | Grupo Financiero Banorte SA de CV | 2,055,761 | ||||||||
| 34,314 | Grupo Televisa SA ADR | 852,703 | ||||||||
| 246,872 | @ | Urbi Desarrollos Urbanos SA de C.V | 953,684 | |||||||
| 8,106,844 | ||||||||||
| Netherlands: 0.5% | ||||||||||
| 24,820 | @ | Koninklijke Ahold NV | 373,964 | |||||||
| 7,967 | Koninklijke Vopak NV | 457,398 | ||||||||
| 82,278 | Royal KPN NV | 1,553,503 | ||||||||
| 8,874 | TNT NV | 364,151 | ||||||||
| 33,695 | Unilever NV | 1,096,697 | ||||||||
| 3,845,713 | ||||||||||
| New Zealand: 0.1% | ||||||||||
| 471,131 | Auckland International Airport Ltd. | 1,048,515 | ||||||||
| 1,048,515 | ||||||||||
| Norway: 1.9% | ||||||||||
| 26,217 | Aker Kvaerner ASA | 919,460 | ||||||||
| 117,889 | DNB NOR ASA | 1,953,679 | ||||||||
| 401,824 | @ | Marine Harvest | 410,211 | |||||||
| 145,951 | Norsk Hydro ASA | 2,145,680 | ||||||||
| 149,614 | Statoil ASA | 5,096,830 | ||||||||
| 80,266 | @ | Telenor ASA | 1,889,901 | |||||||
| 43,563 | Yara International ASA | 1,697,921 | ||||||||
| 14,113,682 | ||||||||||
| Philippines: 0.1% | ||||||||||
| 29,127 | Ayala Corp. | 418,694 | ||||||||
| 685,243 | Ayala Land, Inc. | 239,492 | ||||||||
| 658,186 | ||||||||||
| Poland: 3.2% | ||||||||||
| 7,084 | Bank BPH | 2,772,267 | ||||||||
| 65,145 | Bank Handlowy w Warszawie | 3,035,378 | ||||||||
| 44,724 | Bank Pekao SA | 4,754,790 | ||||||||
| 21,699 | Bank Zachodni WBK SA | 2,417,697 | ||||||||
| 4,132 | @ | BRE Bank SA | 949,148 | |||||||
| 723,291 | Polish Oil & Gas | 1,642,357 | ||||||||
| 215,482 | Powszechna Kasa Oszczednosci Bank Polski SA | 4,793,092 | ||||||||
| 392,395 | Telekomunikacja Polska SA | 3,717,541 | ||||||||
| 24,082,270 | ||||||||||
| Portugal: 0.5% | ||||||||||
| 117,929 | Energias de Portugal SA | 759,831 | ||||||||
| 396,262 | Jeronimo Martins | 2,950,847 | ||||||||
| 3,710,678 | ||||||||||
| Romania: 0.8% | ||||||||||
| 198,352 | Romanian Bank for Development SA | 2,269,104 | ||||||||
| 14,438,215 | SNP Petrom SA | 3,327,342 | ||||||||
| 585,000 | @ | Socep Constanta | 77,278 | |||||||
| 5,673,724 | ||||||||||
| Russia: 6.4% | ||||||||||
| 35,006 | @,L | CTC Media, Inc. | 878,301 | |||||||
| 12,712 | L | Lukoil-Spon ADR | 1,166,511 | |||||||
| 4,282 | L | Mechel OAO ADR | 360,330 | |||||||
| 17,340 | L | MMC Norilsk Nickel ADR | 5,089,290 | |||||||
| 189,463 | X | Novatek OAO | 1,087,518 | |||||||
| 5,938 | # | Novatek OAO GDR | 326,590 | |||||||
| 235,588 | OAO Gazprom ADR | 11,778,279 | ||||||||
| 482,721 | @ | OAO Rosneft Oil Co. GDR | 4,298,202 | |||||||
| 13 | @,I | OJSC Evrocement Group | 240,500 | |||||||
178
Table of Contents
| Shares | Value | |||||||||
| Russia (continued) | ||||||||||
| 1,536 | @,I | Open Investments | $ | 425,764 | ||||||
| 73,302 | @,# | Pharmstandard OJSC GDR | 1,598,717 | |||||||
| 5,126 | Polyus Gold Co. ZAO | 232,937 | ||||||||
| 22,878 | L | Polyus Gold Co. ZAO ADR | 1,029,510 | |||||||
| 1,260,773 | Sberbank RF | 5,450,754 | ||||||||
| 14,797 | # | Severstal JSC GDR | 350,689 | |||||||
| 3,130 | I | Silvinit BRD | 1,244,175 | |||||||
| 45,519 | @,#,L | Sistema-Hals GDR | 443,810 | |||||||
| 34,630 | @ | Unified Energy System GDR | 4,224,860 | |||||||
| 5,041 | @,# | Uralkali GDR | 126,025 | |||||||
| 87,064 | Uralkaliy | 436,393 | ||||||||
| 41,595 | @ | Uralsvyazinform ADR | 528,257 | |||||||
| 378,180 | I | URSA Bank | 699,633 | |||||||
| 45,444 | Vimpel-Communications OAO ADR | 1,502,833 | ||||||||
| 135,556 | @,#,L | VTB Bank OJSC GDR | 1,305,647 | |||||||
| 10,175 | Wimm-Bill-Dann Foods — Class S | 836,414 | ||||||||
| 9,776 | L | Wimm-Bill-Dann Foods OJSC ADR | 1,170,676 | |||||||
| 14,114 | @ | X5 Retail Group NV GDR | 511,119 | |||||||
| 47,343,734 | ||||||||||
| South Africa: 0.4% | ||||||||||
| 28,985 | Impala Platinum Holdings Ltd. | 1,094,885 | ||||||||
| 43,603 | MTN Group Ltd. | 849,873 | ||||||||
| 35,976 | Standard Bank Group Ltd. | 652,682 | ||||||||
| 2,597,440 | ||||||||||
| South Korea: 0.3% | ||||||||||
| 3,932 | Hyundai Motor Co. | 312,464 | ||||||||
| 4,313 | Kookmin Bank | 352,695 | ||||||||
| 1,415 | @ | NHN Corp. | 454,983 | |||||||
| 1,766 | Samsung Electronics Co., Ltd. | 1,088,912 | ||||||||
| 2,209,054 | ||||||||||
| Spain: 0.9% | ||||||||||
| 11,458 | Gamesa Corp. Tecnologica SA | 583,149 | ||||||||
| 45,976 | Iberdrola SA | 741,670 | ||||||||
| 21,632 | Inditex SA | 1,617,387 | ||||||||
| 121,945 | Telefonica SA | 4,037,737 | ||||||||
| 6,979,943 | ||||||||||
| Sweden: 2.1% | ||||||||||
| 26,530 | Getinge AB | 702,994 | ||||||||
| 21,965 | Hennes & Mauritz AB | 1,467,688 | ||||||||
| 27,823 | Modern Times Group AB | 1,967,628 | ||||||||
| 262,050 | Nordea Bank AB | 4,693,689 | ||||||||
| 21,148 | OMX AB | 890,946 | ||||||||
| 5,232 | Securitas AB | 66,189 | ||||||||
| 45,804 | Skandinaviska Enskilda Banken AB | 1,410,353 | ||||||||
| 96,558 | Swedbank AB | 3,033,915 | ||||||||
| 179,522 | Telefonaktiebolaget LM Ericsson | 537,131 | ||||||||
| 65,911 | TeliaSonera AB | 650,263 | ||||||||
| 15,420,796 | ||||||||||
| Switzerland: 5.7% | ||||||||||
| 87,172 | ABB Ltd. | 2,635,243 | ||||||||
| 6,066 | BKW FMB Energie AG | 729,785 | ||||||||
| 72,102 | Compagnie Financiere Richemont AG | 5,156,226 | ||||||||
| 10,805 | S | Credit Suisse Group | 730,170 | |||||||
| 4,121 | Flughafen Zuerich AG | 1,668,063 | ||||||||
| 59,463 | Holcim Ltd. | 6,797,810 | ||||||||
| 24,197 | Nestle SA | 11,176,157 | ||||||||
| 764 | Nobel Biocare Holding AG | 223,038 | ||||||||
| 11,560 | Roche Holding AG | 1,974,485 | ||||||||
| 887 | SGS SA | 1,165,170 | ||||||||
| 13,715 | Swatch Group AG — BR | 4,390,722 | ||||||||
| 3,154 | Synthes, Inc. | 393,824 | ||||||||
| 13,790 | UBS AG — Reg | 739,314 | ||||||||
| 64,587 | Xstrata PLC | 4,657,100 | ||||||||
| 42,437,107 | ||||||||||
| Taiwan: 0.0% | ||||||||||
| 19,583 | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 208,559 | ||||||||
| 208,559 | ||||||||||
| Turkey: 0.1% | ||||||||||
| 21,502 | Haci Omer Sabanci Holding AS | 147,907 | ||||||||
| 45,620 | Turkiye Garanti Bankasi AS | 423,916 | ||||||||
| 57,806 | Turkiye Is Bankasi | 398,196 | ||||||||
| 970,019 | ||||||||||
| Ukraine: 0.8% | ||||||||||
| 2,392,135 | @ | JSCB Ukrsotsbank | 643,800 | |||||||
| 3,381,318 | S | Raiffeisen Bank Aval | 743,529 | |||||||
| 16,379 | @,X | Ukrnafta Oil Co. ADR | 1,319,842 | |||||||
| 87 | @,X | Ukrnafta Oil Co. GDR | 42,292 | |||||||
| 13,145,713 | @,X | UkrTelecom | 2,925,569 | |||||||
| 16,172 | @ | UkrTelecom GDR | 178,739 | |||||||
| 5,853,771 | ||||||||||
| United Kingdom: 8.8% | ||||||||||
| 58,957 | Amec PLC | 1,027,334 | ||||||||
| 93,737 | Anglo American PLC | 6,520,162 | ||||||||
| 44,091 | BAE Systems PLC | 458,066 | ||||||||
| 161,481 | BHP Billiton PLC | 6,201,695 | ||||||||
| 679,333 | BP PLC | 8,838,140 | ||||||||
| 84,227 | Burberry Group PLC | 1,080,705 | ||||||||
| 270,610 | Compass Group PLC | 1,952,153 | ||||||||
| 310,446 | S | Diageo PLC | 7,122,756 | |||||||
| 74,544 | GlaxoSmithKline PLC | 1,914,738 | ||||||||
| 55,230 | Intertek Group PLC | 1,184,568 | ||||||||
| 31,779 | Kingfisher PLC | 130,793 | ||||||||
| 3,190 | Persimmon PLC | 69,805 | ||||||||
| 25,534 | @ | Peter Hambro Mining PLC | 746,972 | |||||||
| 137,733 | QinetiQ PLC | 541,255 | ||||||||
| 58,106 | Reckitt Benckiser PLC | 3,375,404 | ||||||||
| 64,599 | Rio Tinto PLC | 6,057,781 | ||||||||
| 163,267 | @ | Rolls-Royce Group PLC | 1,831,676 | |||||||
| 6,595,986 | @ | Rolls-Royce Group PLC — B Shares | 15,087 | |||||||
| 27,899 | Scottish & Newcastle PLC | 455,180 | ||||||||
| 338,285 | Smith & Nephew PLC | 4,581,252 | ||||||||
| 22,783 | Taylor Woodrow PLC | 117,861 | ||||||||
| 393,280 | Tesco PLC | 4,000,696 | ||||||||
| 1,690,976 | S | Vodafone Group PLC | 6,663,369 | |||||||
| 25,968 | William Hill PLC | 335,423 | ||||||||
| 25,578 | WPP Group PLC | 349,936 | ||||||||
| 65,572,807 | ||||||||||
| United States: 0.0% | ||||||||||
| 528 | L | News Corp. — Class B | 12,107 | |||||||
| 12,107 | ||||||||||
| Total Common Stock (Cost $442,881,548) | 635,085,210 | |||||||||
| EXCHANGE-TRADED FUNDS: 8.9% | ||||||||||
| Hong Kong: 2.6% | ||||||||||
| 463,794 | Hang Seng Investment Index Funds Series — H-Share Index ETF | 12,112,113 | ||||||||
| 103,000 | Hang Seng Investment Index Funds Series II — Hang Seng Index ETF | 4,199,606 | ||||||||
| 810,981 | Tracker Fund of Hong Kong | 3,285,675 | ||||||||
| 19,597,394 | ||||||||||
179
Table of Contents
| Shares | Value | |||||||||
| Ireland: 0.6% | ||||||||||
| 304,423 | IShares PLC-IFTSE 100 Fund | $ | 4,279,000 | |||||||
| 4,279,000 | ||||||||||
| Singapore: 0.6% | ||||||||||
| 454,663 | @ | iShares MSCI India | 4,296,565 | |||||||
| 4,296,565 | ||||||||||
| United States: 5.1% | ||||||||||
| 163,369 | L | iShares MSCI Australia Index Fund | 5,670,538 | |||||||
| 32,126 | L | iShares MSCI Brazil Index Fund | 2,749,986 | |||||||
| 419,244 | L | iShares MSCI Canada Index Fund | 15,126,324 | |||||||
| 25,570 | iShares MSCI South Africa Index Fund | 3,919,881 | ||||||||
| 74,426 | L | iShares MSCI South Korea Index Fund | 5,564,088 | |||||||
| 253,292 | L | iShares MSCI Taiwan Index Fund | 4,597,250 | |||||||
| 37,628,067 | ||||||||||
| Total Exchange-Traded Funds (Cost $57,946,028) | 65,801,026 | |||||||||
| MUTUAL FUNDS: 0.2% | ||||||||||
| British Virgin Islands: 0.0% | ||||||||||
| 104,109 | @ | RenShares Utilities Ltd. | 348,765 | |||||||
| 348,765 | ||||||||||
| Romania: 0.2% | ||||||||||
| 154,500 | SIF 1 Banat Crisana Arad | 241,021 | ||||||||
| 167,500 | SIF 2 Moldova Bacau | 262,765 | ||||||||
| 254,000 | @ | SIF 3 Transilvania Brasov | 265,271 | |||||||
| 232,500 | SIF 4 Muntenia Bucuresti | 253,993 | ||||||||
| 147,500 | SIF 5 Oltenia Craiova | 279,086 | ||||||||
| 1,302,136 | ||||||||||
| Total Mutual Funds (Cost $609,966) | 1,650,901 | |||||||||
| PREFERRED STOCK: 0.5% | ||||||||||
| Brazil: 0.3% | ||||||||||
| 62,709 | Petroleo Brasileiro SA | 2,614,309 | ||||||||
| 2,614,309 | ||||||||||
| Germany: 0.2% | ||||||||||
| 7,136 | Volkswagen AG | 1,352,340 | ||||||||
| 1,352,340 | ||||||||||
| Total Preferred Stock (Cost $3,244,030) | 3,966,649 | |||||||||
| EQUITY-LINKED SECURITIES: 2.4% | ||||||||||
| Bermuda: 1.6% | ||||||||||
| 120,570 | #,X | Bharti Airtel Ltd. (Counterparty: CLSA) | 3,086,342 | |||||||
| 173,177 | #,X | State Bank of India Ltd. (Counterparty: CLSA) | 9,108,159 | |||||||
| 12,194,501 | ||||||||||
| Luxembourg: 0.8% | ||||||||||
| 92,279 | # | Banking Index Benchmark Exchange Traded Scheme — Bank BeES (Counterparty: Citigroup) | 2,125,831 | |||||||
| 69,977 | #,X | State Bank of India Ltd. (Counterparty: Citigroup) | 3,680,406 | |||||||
| 5,806,237 | ||||||||||
| Total Equity-Linked Securities (Cost $7,595,687) | 18,000,738 | |||||||||
| WARRANTS: 0.9% | ||||||||||
| Bermuda: 0.2% | ||||||||||
| 53,377 | # | ICICI Bank, Ltd. | 1,653,671 | |||||||
| 1,653,671 | ||||||||||
| India: 0.2% | ||||||||||
| 8,075 | X | ICICI Bank Ltd. | 257,517 | |||||||
| 17,180 | # | Mahindra & Mahindra Ltd. | 317,977 | |||||||
| 13,033 | # | Oil & Natural Gas Corp. Ltd. | 388,372 | |||||||
| 10,572 | # | Reliance Industries Ltd. | 739,077 | |||||||
| 1,702,943 | ||||||||||
| Luxembourg: 0.5% | ||||||||||
| 184,662 | # | Formosa Plastics Corp. | 567,559 | |||||||
| 184,995 | # | Hon Hai Precision Industry Co. | 1,404,390 | |||||||
| 18,282 | #,X | ICICI Bank Ltd. | 583,024 | |||||||
| 251 | # | State Bank of India Ltd. | 13,192 | |||||||
| 8,138 | X | Suzlon Energy Ltd. | 408,426 | |||||||
| 243,629 | Taiwan Semiconductor Manufacturing Co., Ltd. | 479,462 | ||||||||
| 3,456,053 | ||||||||||
| Total Warrants (Cost $6,153,388) | 6,812,667 | |||||||||
| Total Long-Term Investments (Cost $518,430,647) | 731,317,191 | |||||||||
| Principal Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 6.1% | ||||||||||
| U.S. Government Agency Obligations: 0.4% | ||||||||||
| $ | 2,829,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 2,828,670 | |||||
| Total U.S. Government Agency Obligations (Cost $2,828,670) | 2,828,670 | |||||||||
| Securities Lending CollateralCC: 5.7% | ||||||||||
| 42,530,983 | Bank of New York Mellon Corp. Institutional Cash Reserves | 42,530,983 | ||||||||
| Total Securities Lending Collateral 42,530,983 (Cost $42,530,983) | ||||||||||
| Total Short-Term Investments (Cost $45,359,653) | 45,359,653 | |||||||||
Total Investments in Securities (Cost $563,790,300)* | 104.6 | % | $ | 776,676,844 | ||||||||
Other Assets and Liabilities-Net | (4.6 | ) | (34,456,378 | ) | ||||||||
Net Assets | 100.0 | % | $ | 742,220,466 | ||||||||
180
Table of Contents
| @ | 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| cc | Securities purchased with cash collateral for securities loaned. | |
| I | Illiquid security | |
| S | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $566,722,263 | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 214,347,551 | ||
| Gross Unrealized Depreciation | (4,392,970 | ) | ||
| Net Unrealized Appreciation | $ | 209,954,581 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Advertising | 0.2 | % | ||
| Aerospace/ Defense | 0.4 | |||
| Agriculture | 0.2 | |||
| Apparel | 0.4 | |||
| Auto Manufacturers | 1.9 | |||
| Auto Parts & Equipment | 0.3 | |||
| Banks | 18.8 | |||
| Beverages | 1.4 | |||
| Building Materials | 3.1 | |||
| Chemicals | 2.3 | |||
| Closed-End Funds | 0.2 | |||
| Commercial Services | 0.9 | |||
| Computers | 0.3 | |||
| Distribution/ Wholesale | 0.3 | |||
| Diversified Financial Services | 1.9 | |||
| Electric | 3.8 | % | ||
| Electrical Components & Equipment | 0.4 | |||
| Electronics | 0.7 | |||
| Energy — Alternate Sources | 0.0 | |||
| Engineering & Construction | 5.3 | |||
| Entertainment | 0.1 | |||
| Food | 3.1 | |||
| Food Service | 0.3 | |||
| Hand/ Machine Tools | 0.1 | |||
| Healthcare — Products | 0.8 | |||
| Healthcare — Services | 1.2 | |||
| Hedge Fund | 0.0 | |||
| Holding Companies — Diversified | 2.1 | |||
| Home Builders | 0.2 | |||
| Home Furnishings | 0.3 | |||
| Household Products/ Wares | 0.6 | |||
| Insurance | 0.2 | |||
| Internet | 0.1 | |||
| Investment Companies | 0.3 | |||
| Iron/ Steel | 0.4 | |||
| Leisure Time | 0.0 | |||
| Lodging | 0.3 | |||
| Machinery — Construction & Mining | 0.2 | |||
| Machinery — Diversified | 0.5 | |||
| Media | 1.3 | |||
| Metal Fabricate/ Hardware | 0.3 | |||
| Mining | 9.6 | |||
| Miscellaneous Manufacturing | 0.6 | |||
| Office/ Business Equipment | 0.3 | |||
| Oil & Gas | 9.1 | |||
| Oil & Gas Services | 0.0 | |||
| Pharmaceuticals | 1.6 | |||
| Real Estate | 1.1 | |||
| Retail | 3.1 | |||
| Semiconductors | 0.3 | |||
| Sovereign | 0.0 | |||
| Telecommunications | 7.2 | |||
| Textiles | 0.1 | |||
| Toys/ Games/ Hobbies | 0.6 | |||
| Transportation | 0.3 | |||
| Water | 0.2 | |||
| Other Long-Term Investments | 9.2 | |||
| Short-Term Investments | 6.1 | |||
| Other Assets and Liabilities — Net | (4.6 | ) | ||
Net Assets | 100.0 | % | ||
181
Table of Contents
At October 31, 2007 the following forward currency contracts were outstanding for the ING Foreign Fund:
| In | Unrealized | |||||||||||||||||||
| Buy/ | Settlement | Exchange | Appreciation/ | |||||||||||||||||
| Currency | Sell | Date | For | Value | (Depreciation) | |||||||||||||||
| USD | ||||||||||||||||||||
| Australia Dollars AUD 3,935,566 | Buy | 11/20/07 | 3,358,632 | $ | 3,661,505 | $ | 302,873 | |||||||||||||
| Australia Dollars AUD 10,004,699 | Buy | 11/20/07 | 8,574,998 | 9,308,002 | 733,004 | |||||||||||||||
| Australia Dollars AUD 10,001,484 | Buy | 11/20/07 | 8,654,101 | 9,305,010 | 650,909 | |||||||||||||||
| Canada Dollars CAD 1,641,704 | Buy | 11/19/07 | 1,560,436 | 1,738,025 | 177,588 | |||||||||||||||
| Canada Dollars CAD 5,041,624 | Buy | 11/19/07 | 4,971,722 | 5,337,423 | 365,701 | |||||||||||||||
| Hungary Forint HUF 1,229,295,316 | Buy | 11/19/07 | 6,858,606 | 7,087,006 | 228,400 | |||||||||||||||
| Hungary Forint HUF 509,977,044 | Buy | 11/23/07 | 2,858,455 | 2,939,173 | 80,718 | |||||||||||||||
| Hungary Forint HUF 512,063,806 | Buy | 11/19/07 | 2,871,314 | 2,952,097 | 80,783 | |||||||||||||||
| India Rupees INR 135,084,459 | Buy | 11/27/07 | 3,393,877 | 3,430,499 | 36,622 | |||||||||||||||
| Japanese Yen JPY 2,658,780,768 | Buy | 11/08/07 | 22,802,579 | 23,068,582 | 266,002 | |||||||||||||||
| Japanese Yen JPY 665,585,142 | Buy | 01/31/08 | 5,857,735 | 5,831,509 | (26,226 | ) | ||||||||||||||
| Japanese Yen JPY 893,871,348 | Buy | 01/31/08 | 7,828,273 | 7,831,633 | 3,360 | |||||||||||||||
| Mexico Pesos MXN 17,556,086 | Buy | 11/20/07 | 1,591,555 | 1,644,066 | 52,511 | |||||||||||||||
| Mexico Pesos MXN 16,680,345 | Buy | 11/20/07 | 1,513,470 | 1,562,056 | 48,586 | |||||||||||||||
| Poland Zlotych PLN 52,341,363 | Buy | 11/19/07 | 19,562,141 | 20,916,914 | 1,354,774 | |||||||||||||||
| Turkey New Lira TRY 6,308,567 | Buy | 11/19/07 | 5,166,722 | 5,376,195 | 209,474 | |||||||||||||||
| Turkey New Lira TRY 1,841,136 | Buy | 12/24/07 | 1,492,974 | 1,551,534 | 58,560 | |||||||||||||||
| Turkey New Lira TRY 678,532 | Buy | 11/19/07 | 556,083 | 578,249 | 22,166 | |||||||||||||||
| $ | 4,645,805 | |||||||||||||||||||
| Australia Dollars AUD 3,351,112 | Sell | 11/20/07 | 2,623,415 | $ | 3,117,750 | $ | (494,336 | ) | ||||||||||||
| Australia Dollars AUD 20,590,638 | Sell | 11/20/07 | 16,026,867 | 19,156,766 | (3,129,900 | ) | ||||||||||||||
| Canada Dollars CAD 6,683,328 | Sell | 11/19/07 | 6,216,760 | 7,075,447 | (858,687 | ) | ||||||||||||||
| Czech Republic Koruny CZK 54,430,896 | Sell | 12/27/07 | 2,792,330 | 2,934,545 | (142,214 | ) | ||||||||||||||
| Hungary Forint HUF 2,072,139,505 | Sell | 11/19/07 | 10,648,100 | 11,946,083 | (1,297,983 | ) | ||||||||||||||
| Hungary Forint HUF 570,270,848 | Sell | 11/19/07 | 2,957,806 | 3,287,666 | (329,861 | ) | ||||||||||||||
| Hungary Forint HUF 509,977,044 | Sell | 11/23/07 | 2,642,368 | 2,939,173 | (296,805 | ) | ||||||||||||||
| Hungary Forint HUF 460,939,702 | Sell | 11/19/07 | 2,366,245 | 2,657,362 | (291,117 | ) | ||||||||||||||
| India Rupees INR 40,015,813 | Sell | 11/27/07 | 1,006,434 | 1,016,210 | (9,776 | ) | ||||||||||||||
| India Rupees INR 95,068,646 | Sell | 11/27/07 | 2,385,806 | 2,414,289 | (28,483 | ) | ||||||||||||||
| Mexico Pesos MXN 70,509,254 | Sell | 11/20/07 | 6,216,760 | 6,602,945 | (386,185 | ) | ||||||||||||||
| Poland Zlotych PLN 48,197,429 | Sell | 11/19/07 | 16,922,660 | 19,260,895 | (2,338,234 | ) | ||||||||||||||
| Poland Zlotych PLN 10,916,731 | Sell | 11/19/07 | 3,846,059 | 4,362,598 | (516,539 | ) | ||||||||||||||
| Poland Zlotych PLN 10,966,153 | Sell | 11/19/07 | 3,846,059 | 4,382,348 | (536,289 | ) | ||||||||||||||
| Turkey New Lira TRY 6,987,099 | Sell | 11/19/07 | 4,835,563 | 5,954,444 | (1,118,880 | ) | ||||||||||||||
| Turkey New Lira TRY 1,841,136 | Sell | 12/24/07 | 1,445,161 | 1,551,534 | (106,373 | ) | ||||||||||||||
| $ | (11,881,662 | ) | ||||||||||||||||||
182
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 97.2% | ||||||||||
| China: 29.6% | ||||||||||
| 1,168,000 | @ | China Citic Bank | $ | 950,370 | ||||||
| 300,000 | China Communications Construction Co., Ltd. | 951,903 | ||||||||
| 1,853,000 | China Construction Bank | 2,106,611 | ||||||||
| 604,000 | China Life Insurance Co., Ltd. | 4,031,700 | ||||||||
| 1,160,000 | China Petroleum & Chemical Corp. | 1,846,994 | ||||||||
| 738,000 | China Shipping Development Co., Ltd. | 2,521,688 | ||||||||
| 538,000 | @ | China Southern Airlines Co., Ltd. | 750,265 | |||||||
| 276,000 | Dalian Port PDA Co., Ltd. | 255,574 | ||||||||
| 212,000 | Dongfang Electrical Machinery Co., Ltd. | 1,895,208 | ||||||||
| 112,000 | @ | Foxconn International Holdings Ltd. | 312,305 | |||||||
| 379,200 | Guangzhou R&F Properties Co., Ltd. | 1,996,386 | ||||||||
| 431,000 | Jiangxi Copper Co., Ltd. | 1,524,434 | ||||||||
| 2,042,000 | PetroChina Co., Ltd. | 5,272,266 | ||||||||
| 600,500 | Shimao Property Holdings Ltd. | 2,149,853 | ||||||||
| 548,917 | @ | SPG Land Holdings Ltd. | 521,757 | |||||||
| 546,000 | Travelsky Technology Ltd. | 653,726 | ||||||||
| 27,741,040 | ||||||||||
| Hong Kong: 46.2% | ||||||||||
| 592,000 | @ | AAC Acoustic Technologies | 780,531 | |||||||
| 1,154,000 | BOC Hong Kong Holdings Ltd. | 3,268,118 | ||||||||
| 161,000 | Cheung Kong Holdings Ltd. | 3,158,084 | ||||||||
| 406,500 | China Mobile Ltd. | 8,403,765 | ||||||||
| 1,838,000 | China Overseas Land & Investment Ltd. | 4,399,442 | ||||||||
| 1,520,000 | China Power International Development Ltd. | 814,173 | ||||||||
| 440,000 | China Resources Enterprise | 1,930,011 | ||||||||
| 324,000 | Chow Sang Sang Holdings International Ltd. | 448,110 | ||||||||
| 2,921,000 | Chuang’s China Investments | 467,345 | ||||||||
| 373,000 | Citic Pacific Ltd. | 2,352,092 | ||||||||
| 461,000 | CNOOC Ltd. | 996,273 | ||||||||
| 284,920 | @ | Dah Chong Hong Holdings Ltd. | 174,255 | |||||||
| 360,000 | Hang Lung Group Ltd. | 2,125,656 | ||||||||
| 383,000 | Hang Lung Properties Ltd. | 1,842,646 | ||||||||
| 123,700 | Hang Seng Bank Ltd. | 2,527,185 | ||||||||
| 210,000 | Henderson Land Development Co., Ltd. | 1,882,542 | ||||||||
| 78,500 | Hong Kong Exchanges and Clearing Ltd. | 2,620,524 | ||||||||
| 155,000 | Li & Fung Ltd. | 735,530 | ||||||||
| 80,000 | MTR Corp. | 277,350 | ||||||||
| 659,000 | New World Development Ltd. | 2,375,197 | ||||||||
| 88,000 | Sun Hung Kai Properties Ltd. | 1,681,764 | ||||||||
| 43,260,593 | ||||||||||
| Taiwan: 21.4% | ||||||||||
| 822,640 | Asia Cement Corp. | 1,344,213 | ||||||||
| 7,461 | Asustek Computer, Inc. | 26,490 | ||||||||
| 8,202 | AU Optronics Corp. | 17,744 | ||||||||
| 291,000 | Cathay Financial Holding Co., Ltd. | 761,134 | ||||||||
| 909,000 | Cheng Loong Corp. | 362,320 | ||||||||
| 1,077,270 | China Steel Corp. | 1,529,284 | ||||||||
| 247,800 | Delta Electronics, Inc. | 1,003,126 | ||||||||
| 1,764,863 | Far Eastern Textile Co., Ltd. | 2,352,524 | ||||||||
| 1,513,791 | Goldsun Development & Construction Co., Ltd. | 884,911 | ||||||||
| 383,040 | HON HAI Precision Industry Co., Ltd. | 2,936,611 | ||||||||
| 151,000 | Huang Hsiang Construction Co. | 310,534 | ||||||||
| 968,000 | @ | Lealea Enterprise | 308,108 | |||||||
| 178,560 | MediaTek, Inc. | 3,533,467 | ||||||||
| 1,062,400 | Nan Ya Plastics Corp. | 3,194,491 | ||||||||
| 403,440 | Uni-President Enterprises Corp. | 584,936 | ||||||||
| 120,400 | @,# | Wintek Corp. GDR | 858,404 | |||||||
| 20,008,297 | ||||||||||
Total Investments in Securities (Cost $57,848,348)* | 97.2 | % | $ | 91,009,930 | ||||||||
Other Assets and Liabilities-Net | 2.8 | 2,645,630 | ||||||||||
Net Assets | 100.0 | % | $ | 93,655,560 | ||||||||
| @ | Non-income producing security | |
| 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| * | Cost for federal income tax purposes is $58,031,991. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 33,447,328 | ||
| Gross Unrealized Depreciation | (469,389 | ) | ||
| Net Unrealized Appreciation | $ | 32,977,939 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Airlines | 0.8 | % | ||
| Banks | 9.4 | |||
| Building Materials | 2.4 | |||
| Chemicals | 3.4 | |||
| Commercial Services | 0.3 | |||
| Distribution/ Wholesale | 0.8 | |||
| Diversified Financial Services | 2.8 | |||
| Electric | 0.9 | |||
| Electrical Components & Equipment | 3.1 | |||
| Electronics | 4.9 | |||
| Engineering & Construction | 1.0 | |||
| Food | 0.6 | |||
| Forest Products & Paper | 0.4 | |||
| Holding Companies — Diversified | 5.3 | |||
| Insurance | 5.1 | |||
| Iron/ Steel | 1.6 | |||
| Metal Fabricate/ Hardware | 1.6 | |||
| Oil & Gas | 8.7 | |||
| Real Estate | 24.0 | |||
| Retail | 0.5 | |||
| Semiconductors | 3.8 | |||
| Software | 0.7 | |||
| Telecommunications | 9.3 | |||
| Textiles | 2.8 | |||
| Transportation | 3.0 | |||
| Other Assets and Liabilities — Net | 2.8 | |||
Net Assets | 100.0 | % | ||
183
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 91.1% | ||||||||||
| Australia: 6.0% | ||||||||||
| 5,649 | ABC Learning Centres Ltd. | $ | 34,880 | |||||||
| 5,081 | Amcor Ltd. | 33,363 | ||||||||
| 1,263 | Australia & New Zealand Banking Group Ltd. | 35,657 | ||||||||
| 1,599 | Babcock & Brown Ltd. | 46,300 | ||||||||
| 9,822 | BHP Billiton Ltd. | 427,697 | ||||||||
| 3,459 | BlueScope Steel Ltd. | 34,501 | ||||||||
| 5,231 | Boral Ltd. | 33,243 | ||||||||
| 29,181 | CFS Retail Property Trust | 66,654 | ||||||||
| 29,699 | Coles Myer Ltd. | 448,182 | ||||||||
| 661 | Commonwealth Bank of Australia | 38,070 | ||||||||
| 22,526 | Commonwealth Property Office Fund | 33,337 | ||||||||
| 7,929 | CSL Ltd. | 272,397 | ||||||||
| 141,815 | CSR Ltd. | 452,647 | ||||||||
| 6,682 | Foster’s Group Ltd. | 39,897 | ||||||||
| 7,480 | GPT Group | 32,363 | ||||||||
| 31,309 | Harvey Norman Holdings Ltd. | 198,953 | ||||||||
| 6,562 | Iluka Resources Ltd. | 26,852 | ||||||||
| 5,926 | Lion Nathan Ltd. | 51,539 | ||||||||
| 11,612 | Macquarie Airports Management Ltd. | 47,722 | ||||||||
| 516 | @ | Macquarie Bank Ltd. | 41,211 | |||||||
| 11,985 | Macquarie Infrastructure Group | 35,577 | ||||||||
| 421,668 | Macquarie Office Trust | 646,987 | ||||||||
| 82,202 | Multiplex Group | 385,820 | ||||||||
| 940 | National Australia Bank Ltd. | 38,030 | ||||||||
| 3,624 | Origin Energy Ltd. | 31,101 | ||||||||
| 101,571 | Pacific Brands Ltd. | 328,515 | ||||||||
| 19,820 | Qantas Airways Ltd. | 109,613 | ||||||||
| 5,296 | QBE Insurance Group Ltd. | 162,072 | ||||||||
| 5,536 | Rio Tinto Ltd. | 574,634 | ||||||||
| 18,706 | Santos Ltd. | 246,905 | ||||||||
| 150,048 | Stockland | 1,260,462 | ||||||||
| 3,675 | Suncorp-Metway Ltd. | 69,821 | ||||||||
| 17,133 | Telstra Corp., Ltd. | 74,987 | ||||||||
| 2,842 | Toll Holdings Ltd. | 35,517 | ||||||||
| 922 | Wesfarmers Ltd. | 37,939 | ||||||||
| 1,748 | Westfield Group | 35,741 | ||||||||
| 1,313 | Westpac Banking Corp. | 36,853 | ||||||||
| 1,583 | Woodside Petroleum Ltd. | 77,469 | ||||||||
| 1,517 | Woolworths Ltd. | 47,545 | ||||||||
| 1,070 | WorleyParsons Ltd. | 48,367 | ||||||||
| 43,994 | Zinifex Ltd. | 696,232 | ||||||||
| 7,375,652 | ||||||||||
| Austria: 2.4% | ||||||||||
| 84,966 | Immofinanz Immobilien Anlagen AG | 1,014,253 | ||||||||
| 1,135 | Oesterreichische Elektrizitaetswirtschafts AG | 75,214 | ||||||||
| 6,725 | Raiffeisen International Bank Holding AG | 1,118,778 | ||||||||
| 8,266 | Voestalpine AG | 746,876 | ||||||||
| 2,955,121 | ||||||||||
| Belgium: 1.9% | ||||||||||
| 1,117 | Dexia | 35,963 | ||||||||
| 582 | D’ieteren SA | 252,556 | ||||||||
| 14,748 | Fortis | 473,635 | ||||||||
| 4,142 | @ | Fortis | 60 | |||||||
| 373 | Groupe Bruxelles Lambert SA | 47,789 | ||||||||
| 11,115 | InBev NV | 1,051,998 | ||||||||
| 2,628 | KBC Groep NV | 369,368 | ||||||||
| 412 | Solvay SA | 62,733 | ||||||||
| 2,294,102 | ||||||||||
| China: 0.1% | ||||||||||
| 8,000 | Tencent Holdings Ltd. | 68,580 | ||||||||
| 68,580 | ||||||||||
| Denmark: 1.5% | ||||||||||
| 4 | AP Moller — Maersk A/S | 55,387 | ||||||||
| 2,850 | Carlsberg A/S | 385,502 | ||||||||
| 10,725 | Novo-Nordisk A/S | 1,336,641 | ||||||||
| 750 | Sydbank A/S | 34,657 | ||||||||
| 1,812,187 | ||||||||||
| Finland: 2.1% | ||||||||||
| 61,635 | Nokia OYJ | 2,447,848 | ||||||||
| 1,311 | Orion OYJ | 33,714 | ||||||||
| 2,731 | UPM-Kymmene OYJ | 61,347 | ||||||||
| 2,542,909 | ||||||||||
| France: 7.3% | ||||||||||
| 716 | Accor SA | 68,596 | ||||||||
| 1,539 | Air France-KLM | 58,727 | ||||||||
| 8,316 | BNP Paribas | 921,674 | ||||||||
| 379 | Bouygues SA | 36,577 | ||||||||
| 3,666 | Cie de Saint-Gobain | 395,090 | ||||||||
| 1,628 | Credit Agricole SA | 64,499 | ||||||||
| 992 | France Telecom SA | 36,684 | ||||||||
| 1,248 | Gaz de France | 71,092 | ||||||||
| 4,885 | Lafarge SA | 798,532 | ||||||||
| 4,910 | LVMH Moet Hennessy Louis Vuitton SA | 634,289 | ||||||||
| 177 | PPR | 35,200 | ||||||||
| 1,835 | Sanofi-Aventis | 161,414 | ||||||||
| 472 | Schneider Electric SA | 65,292 | ||||||||
| 2,432 | Scor SA | 66,515 | ||||||||
| 5,114 | Sodexho Alliance SA | 370,235 | ||||||||
| 26,055 | Suez SA | 1,699,873 | ||||||||
| 357 | Technip SA | 32,090 | ||||||||
| 3,403 | @ | Thomson | 59,646 | |||||||
| 9,861 | Total SA | 795,743 | ||||||||
| 410 | Vallourec | 119,392 | ||||||||
| 757 | Veolia Environnement | 67,773 | ||||||||
| 16,765 | Vinci SA | 1,383,411 | ||||||||
| 24,383 | Vivendi | 1,101,851 | ||||||||
| 9,044,195 | ||||||||||
| Germany: 6.0% | ||||||||||
| 1,118 | Allianz AG | 252,236 | ||||||||
| 2,619 | BASF AG | 363,588 | ||||||||
| 5,516 | Commerzbank AG | 234,024 | ||||||||
| 1,841 | DaimlerChrysler AG | 203,027 | ||||||||
| 12,422 | Deutsche Bank AG | 1,659,543 | ||||||||
| 42,489 | Deutsche Post AG | 1,286,903 | ||||||||
| 1,947 | E.ON AG | 381,089 | ||||||||
| 760 | Heidelberger Druckmaschinen | 31,140 | ||||||||
| 2,832 | Henkel KGaA — Vorzug | 144,652 | ||||||||
| 2,982 | @ | KarstadtQuelle AG | 95,746 | |||||||
| 2,408 | Merck KGaA | 301,478 | ||||||||
| 3,867 | Metro AG | 350,455 | ||||||||
| 347 | Muenchener Rueckversicherungs AG | 66,399 | ||||||||
| 7,155 | RWE AG | 975,985 | ||||||||
| 2,817 | Salzgitter AG | 554,639 | ||||||||
| 2,717 | Siemens AG | 371,009 | ||||||||
| 1,003 | ThyssenKrupp AG | 66,617 | ||||||||
| 328 | Volkswagen AG | 93,766 | ||||||||
| 7,432,296 | ||||||||||
184
Table of Contents
| Shares | Value | |||||||||
| Greece: 0.3% | ||||||||||
| 1,062 | Hellenic Exchanges SA Holding Clearing Settlement and Registry | $ | 37,168 | |||||||
| 10,564 | Hellenic Telecommunications Organization SA | 388,019 | ||||||||
| 425,187 | ||||||||||
| Hong Kong: 0.7% | ||||||||||
| 2,000 | Cheung Kong Holdings Ltd. | 39,231 | ||||||||
| 1,000 | Hong Kong Exchanges and Clearing Ltd. | 33,382 | ||||||||
| 181,000 | @ | Hutchison Telecommunications International Ltd. | 258,345 | |||||||
| 116,000 | Johnson Electric Holdings Ltd. | 64,808 | ||||||||
| 20,000 | Kingboard Chemicals Holdings | 131,366 | ||||||||
| 103,000 | Melco International Development | 195,284 | ||||||||
| 3,500 | Orient Overseas International Ltd. | 36,133 | ||||||||
| 73,000 | PCCW Ltd. | 47,138 | ||||||||
| 34,500 | Shui On Land Ltd. | 48,023 | ||||||||
| 20,000 | Shun TAK Holdings Ltd. | 31,575 | ||||||||
| 885,285 | ||||||||||
| Ireland: 0.8% | ||||||||||
| 37,446 | Allied Irish Banks PLC | 945,950 | ||||||||
| 945,950 | ||||||||||
| Italy: 4.4% | ||||||||||
| 35,921 | @ | Banco Popolare Scarl | 862,187 | |||||||
| 32,779 | ENI S.p.A. | 1,196,862 | ||||||||
| 11,857 | Finmeccanica S.p.A. | 352,702 | ||||||||
| 72,838 | Parmalat S.p.A. | 269,822 | ||||||||
| 302,020 | Telecom Italia S.p.A. | 946,392 | ||||||||
| 13,751 | Telecom Italia S.p.A. RNC | 35,613 | ||||||||
| 200,177 | UniCredito Italiano S.p.A. | 1,722,004 | ||||||||
| 5,385,582 | ||||||||||
| Japan: 18.5% | ||||||||||
| 20,100 | Aeon Co., Ltd. | 316,402 | ||||||||
| 9,000 | Amada Co., Ltd. | 91,066 | ||||||||
| 1,900 | Aoyama Trading Co., Ltd. | 49,668 | ||||||||
| 700 | Astellas Pharma, Inc. | 31,074 | ||||||||
| 5,000 | Bank of Yokohama Ltd. | 35,479 | ||||||||
| 14,900 | Canon Sales Co., Inc. | 291,965 | ||||||||
| 27,400 | Canon, Inc. | 1,386,423 | ||||||||
| 3,500 | Casio Computer Co., Ltd. | 33,001 | ||||||||
| 28 | Central Japan Railway Co. | 289,667 | ||||||||
| 5,000 | Chiba Bank Ltd. | 40,131 | ||||||||
| 2,000 | Chiyoda Corp. | 37,140 | ||||||||
| 92,000 | COMSYS Holdings Corp. | 901,964 | ||||||||
| 900 | CSK Corp. | 35,263 | ||||||||
| 4,000 | Daifuku Co., Ltd. | 47,779 | ||||||||
| 900 | Denso Corp. | 36,563 | ||||||||
| 5,400 | EDION Corp. | 62,026 | ||||||||
| 2,000 | @ | Elpida Memory, Inc. | 68,990 | |||||||
| 2,500 | FamilyMart Co., Ltd. | 72,860 | ||||||||
| 2,200 | Fast Retailing Co., Ltd. | 126,639 | ||||||||
| 1,300 | Fuji Photo Film Co., Ltd. | 62,185 | ||||||||
| 12,000 | Furukawa Electric Co., Ltd. | 57,637 | ||||||||
| 4,000 | H2O Retailing Corp. | 33,251 | ||||||||
| 1,800 | Hikari Tsushin, Inc. | 54,965 | ||||||||
| 10,000 | Hitachi Cable Ltd. | 66,862 | ||||||||
| 11,500 | Hitachi Chemical Co., Ltd. | 281,904 | ||||||||
| 14,400 | Hitachi High-Technologies Corp. | 324,475 | ||||||||
| 19,700 | Honda Motor Co., Ltd. | 737,703 | ||||||||
| 20 | Inpex Holdings, Inc. | 215,606 | ||||||||
| 200 | @ | J Front Retailing Co., Ltd. | 1,794 | |||||||
| 9,000 | Joyo Bank Ltd. | 55,812 | ||||||||
| 2,000 | JS Group Corp. | 32,399 | ||||||||
| 10,000 | Kajima Corp. | 35,193 | ||||||||
| 9 | KDDI Corp. | 67,974 | ||||||||
| 11,000 | Keisei Electric Railway Co., Ltd. | 60,612 | ||||||||
| 3,400 | Keyence Corp. | 783,533 | ||||||||
| 24,400 | Komatsu Ltd. | 818,050 | ||||||||
| 1,400 | Komori Corp. | 37,028 | ||||||||
| 3,100 | Koyo Seiko Co., Ltd. | 59,599 | ||||||||
| 700 | Kyocera Corp. | 59,499 | ||||||||
| 2,000 | Lawson, Inc. | 69,145 | ||||||||
| 8,200 | Matsui Securities Co., Ltd. | 65,152 | ||||||||
| 31,000 | Matsushita Electric Industrial Co., Ltd. | 591,968 | ||||||||
| 3,000 | Matsushita Electric Works Ltd. | 33,392 | ||||||||
| 11,000 | Meiji Dairies Corp. | 58,106 | ||||||||
| 3,000 | Mitsubishi Electric Corp. | 36,576 | ||||||||
| 7,000 | Mitsubishi Gas Chemical Co., Inc. | 70,084 | ||||||||
| 10,000 | Mitsubishi UFJ Financial Group, Inc. | 100,061 | ||||||||
| 48,000 | Mitsui Mining & Smelting Co., Ltd. | 202,099 | ||||||||
| 52,000 | Mitsui OSK Lines Ltd. | 859,432 | ||||||||
| 4,000 | Mitsui Trust Holdings, Inc. | 32,006 | ||||||||
| 271 | Mizuho Financial Group, Inc. | 1,523,141 | ||||||||
| 2,300 | Namco Bandai Holdings, Inc. | 35,461 | ||||||||
| 14,000 | Nichirei Corp. | 59,857 | ||||||||
| 200 | Nintendo Co., Ltd. | 127,016 | ||||||||
| 4,000 | Nippon Electric Glass Co., Ltd. | 67,986 | ||||||||
| 7,000 | Nippon Express Co., Ltd. | 35,205 | ||||||||
| 4,000 | Nippon Oil Corp. | 35,427 | ||||||||
| 110 | Nippon Telegraph & Telephone Corp. | 503,431 | ||||||||
| 5,000 | Nippon Yusen KK | 51,621 | ||||||||
| 3,300 | Nomura Holdings, Inc. | 58,803 | ||||||||
| 7,000 | NSK Ltd. | 62,064 | ||||||||
| 7,000 | Obayashi Corp. | 35,275 | ||||||||
| 340 | Obic Co., Ltd. | 68,296 | ||||||||
| 2,000 | Okuma Corp. | 28,183 | ||||||||
| 10,000 | Olympus Corp. | 416,447 | ||||||||
| 4,000 | Onward Kashiyama Co., Ltd. | 41,239 | ||||||||
| 5,100 | Pioneer Corp. | 56,825 | ||||||||
| 2,000 | Ricoh Co., Ltd. | 39,531 | ||||||||
| 600 | Ryohin Keikaku Co., Ltd. | 37,765 | ||||||||
| 40,000 | @ | Sanyo Electric Co., Ltd. | 66,216 | |||||||
| 3 | Sapporo Hokuyo Holdings, Inc. | 30,878 | ||||||||
| 133 | SBI E*trade Securities Co., Ltd. | 142,783 | ||||||||
| 2,400 | Sega Sammy Holdings, Inc. | 33,137 | ||||||||
| 8,000 | Sekisui House Ltd. | 102,347 | ||||||||
| 20,000 | Seven & I Holdings Co., Ltd. | 516,433 | ||||||||
| 12,700 | Shin-Etsu Chemical Co., Ltd. | 814,655 | ||||||||
| 3,600 | Shinko Electric Industries | 83,208 | ||||||||
| 13,000 | Shinko Securities Co., Ltd. | 67,328 | ||||||||
| 5,000 | Showa Shell Sekiyu KK | 58,868 | ||||||||
| 1,100 | SMC Corp. | 147,348 | ||||||||
| 1,800 | Softbank Corp. | 42,039 | ||||||||
| 239 | Softbank Investment Corp. | 75,822 | ||||||||
| 4,200 | Sony Corp. | 207,423 | ||||||||
| 8,200 | Sumco Corp. | 299,277 | ||||||||
| 25,000 | Sumitomo Bakelite Co., Ltd. | 153,302 | ||||||||
| 3,700 | Sumitomo Electric Industries Ltd. | 59,904 | ||||||||
| 3,000 | Sumitomo Heavy Industries | 39,633 | ||||||||
| 30,000 | Sumitomo Metal Mining Co., Ltd. | 669,446 | ||||||||
| 193 | Sumitomo Mitsui Financial Group, Inc. | 1,580,926 | ||||||||
| 25,000 | Sumitomo Osaka Cement Co., Ltd. | 62,654 | ||||||||
| 47,000 | Sumitomo Trust & Banking Co., Ltd. | 350,432 | ||||||||
| 5,000 | Suruga Bank Ltd. | 65,640 | ||||||||
| 12,000 | Taisei Corp. | 36,104 | ||||||||
| 3,000 | Taiyo Yuden Co., Ltd. | 49,770 | ||||||||
| 900 | Takeda Pharmaceutical Co., Ltd. | 56,218 | ||||||||
| 60,000 | Tanabe Seiyaku Co., Ltd. | 691,332 | ||||||||
| 400 | TDK Corp. | 32,828 | ||||||||
| 5,200 | THK Co., Ltd. | 114,668 | ||||||||
| 190,000 | Tokyo Gas Co., Ltd. | 847,045 | ||||||||
185
Table of Contents
| Shares | Value | |||||||||
| Japan (continued) | ||||||||||
| 6,000 | Tokyu Land Corp. | $ | 62,161 | |||||||
| 5,000 | Toto Ltd. | 36,188 | ||||||||
| 28,400 | Toyota Motor Corp. | 1,625,735 | ||||||||
| 6,000 | UNY Co., Ltd. | 52,020 | ||||||||
| 4,600 | Ushio, Inc. | 94,935 | ||||||||
| 3,000 | Wacoal Holdings Corp. | 36,571 | ||||||||
| 11,000 | Zeon Corp. | 103,873 | ||||||||
| 22,710,922 | ||||||||||
| Netherlands: 5.3% | ||||||||||
| 3,454 | Aegon NV | 71,602 | ||||||||
| 14,322 | ArcelorMittal | 1,141,030 | ||||||||
| 713 | @ | ASML Holding NV | 24,826 | |||||||
| 1,082 | European Aeronautic Defence and Space Co. NV | 36,883 | ||||||||
| 46,083 | @ | Koninklijke Ahold NV | 694,335 | |||||||
| 3,866 | Koninklijke Philips Electronics NV | 159,946 | ||||||||
| 44,509 | Royal Dutch Shell PLC��— Class A | 1,952,175 | ||||||||
| 29,329 | Royal Dutch Shell PLC — Class B | 1,279,618 | ||||||||
| 35,557 | Unilever NV | 1,157,301 | ||||||||
| 6,517,716 | ||||||||||
| New Zealand: 0.2% | ||||||||||
| 28,265 | Contact Energy Ltd. | 198,148 | ||||||||
| 7,853 | Sky Network Television Ltd. | 35,003 | ||||||||
| 32,828 | Vector Ltd. | 60,637 | ||||||||
| 293,788 | ||||||||||
| Norway: 1.0% | ||||||||||
| 2,200 | DNB NOR ASA | 36,459 | ||||||||
| 5,700 | Norske Skogindustrier ASA | 63,059 | ||||||||
| 2,090 | @ | Petroleum Geo-Services ASA | 62,050 | |||||||
| 30,089 | Statoil ASA | 1,025,028 | ||||||||
| 1,600 | @ | TGS Nopec Geophysical Co. ASA | 26,962 | |||||||
| 1,213,558 | ||||||||||
| Portugal: 0.0% | ||||||||||
| 5,672 | Energias de Portugal SA | 36,545 | ||||||||
| 36,545 | ||||||||||
| Singapore: 2.4% | ||||||||||
| 47,000 | ComfortDelgro Corp., Ltd. | 63,123 | ||||||||
| 84,000 | DBS Group Holdings Ltd. | 1,314,750 | ||||||||
| 71,000 | Neptune Orient Lines Ltd. | 254,344 | ||||||||
| 15,000 | Olam International Ltd. | 36,630 | ||||||||
| 71,000 | Oversea-Chinese Banking Corp. | 455,831 | ||||||||
| 4,000 | Singapore Exchange Ltd. | 43,830 | ||||||||
| 47,000 | Singapore Press Holdings Ltd. | 149,600 | ||||||||
| 17,000 | United Overseas Bank Ltd. | 255,021 | ||||||||
| 55,000 | United Overseas Land Ltd. | 201,816 | ||||||||
| 67,000 | Wing Tai Holdings Ltd. | 161,979 | ||||||||
| 2,936,924 | ||||||||||
| Spain: 2.6% | ||||||||||
| 1,299 | Acerinox SA | 38,400 | ||||||||
| 6,467 | Banco Bilbao Vizcaya Argentaria SA | 163,660 | ||||||||
| 21,418 | Banco Santander Central Hispano SA | 468,405 | ||||||||
| 407 | Fomento de Construcciones y Contratas SA | 35,562 | ||||||||
| 590 | Gas Natural SDG SA | 36,374 | ||||||||
| 73,968 | Telefonica SA | 2,449,165 | ||||||||
| 3,191,566 | ||||||||||
| Sweden: 2.1% | ||||||||||
| 25,204 | Atlas Copco AB — Class B | 395,000 | ||||||||
| 9,700 | Boliden AB | 171,933 | ||||||||
| 3,000 | Electrolux AB | 58,279 | ||||||||
| 6,200 | Nobia AB | 54,608 | ||||||||
| 3,600 | Nordea Bank AB | 64,481 | ||||||||
| 2,300 | Scania AB — B Shares | 63,147 | ||||||||
| 1,900 | Skandinaviska Enskilda Banken AB | 58,503 | ||||||||
| 1,800 | SSAB Svenskt Staal AB | 53,248 | ||||||||
| 1,800 | Svenska Cellulosa AB — B Shares | 31,804 | ||||||||
| 7,800 | Svenska Handelsbanken AB | 259,369 | ||||||||
| 70,010 | Volvo AB | 1,376,766 | ||||||||
| 2,587,138 | ||||||||||
| Switzerland: 7.2% | ||||||||||
| 503 | Compagnie Financiere Richemont AG | 35,971 | ||||||||
| 24,961 | Credit Suisse Group | 1,686,790 | ||||||||
| 577 | Holcim Ltd. | 65,963 | ||||||||
| 373 | Kuoni Reisen Holding | 186,740 | ||||||||
| 1,944 | Nestle SA | 897,898 | ||||||||
| 8,498 | Novartis AG | 452,045 | ||||||||
| 91 | @ | OC Oerlikon Corp. AG | 43,387 | |||||||
| 7,719 | Roche Holding AG | 1,318,430 | ||||||||
| 4,989 | Schindler Holding AG | 349,800 | ||||||||
| 31,437 | STMicroelectronics NV | 538,604 | ||||||||
| 99 | Swatch Group AG — BR | 31,694 | ||||||||
| 685 | Swatch Group AG — Reg | 43,107 | ||||||||
| 15,181 | Swiss Reinsurance | 1,427,289 | ||||||||
| 5,896 | UBS AG — Reg | 316,098 | ||||||||
| 978 | Xstrata PLC | 70,520 | ||||||||
| 4,570 | Zurich Financial Services AG | 1,379,829 | ||||||||
| 8,844,165 | ||||||||||
| United Kingdom: 18.3% | ||||||||||
| 33,579 | 3I Group PLC | 759,748 | ||||||||
| 12,955 | Aegis Group PLC | 34,110 | ||||||||
| 4,836 | Amvescap PLC | 74,024 | ||||||||
| 2,379 | Anglo American PLC | 165,479 | ||||||||
| 12,258 | ARM Holdings PLC | 37,824 | ||||||||
| 19,777 | AstraZeneca PLC | 973,921 | ||||||||
| 2,612 | Aviva PLC | 41,153 | ||||||||
| 16,403 | Barclays PLC | 207,604 | ||||||||
| 2,175 | Barratt Developments PLC | 29,615 | ||||||||
| 3,051 | Bellway PLC | 68,502 | ||||||||
| 50,332 | BHP Billiton PLC | 1,933,006 | ||||||||
| 4,500 | Bovis Homes Group PLC | 62,328 | ||||||||
| 102,021 | BP PLC | 1,327,296 | ||||||||
| 70,949 | @ | British Airways PLC | 659,764 | |||||||
| 1,812 | British American Tobacco PLC | 69,033 | ||||||||
| 5,946 | British Energy Group PLC | 66,045 | ||||||||
| 2,383 | British Sky Broadcasting PLC | 33,749 | ||||||||
| 162,444 | BT Group PLC | 1,104,172 | ||||||||
| 4,166 | Carnival PLC | 195,005 | ||||||||
| 86,158 | Compass Group PLC | 621,535 | ||||||||
| 58,059 | Daily Mail & General Trust | 741,896 | ||||||||
| 5,502 | Davis Service Group PLC | 62,511 | ||||||||
| 5,232 | Enterprise Inns PLC | 68,726 | ||||||||
| 19,151 | FKI PLC | 37,068 | ||||||||
| 7,954 | GKN PLC | 60,883 | ||||||||
| 24,415 | GlaxoSmithKline PLC | 627,124 | ||||||||
| 18,192 | HBOS PLC | 331,606 | ||||||||
| 4,193 | Home Retail Group | 38,121 | ||||||||
| 62,720 | HSBC Holdings PLC | 1,243,530 | ||||||||
| 29,779 | Imperial Tobacco Group PLC | 1,511,565 | ||||||||
| 118,977 | International Power PLC | 1,213,068 | ||||||||
| 12,083 | J Sainsbury PLC | 137,739 | ||||||||
| 7,307 | Ladbrokes PLC | 62,785 | ||||||||
| 335,349 | Legal & General Group PLC | 979,012 | ||||||||
| 5,589 | Lloyds TSB Group PLC | 63,488 | ||||||||
| 10,536 | LogicaCMG PLC | 35,768 | ||||||||
| 30,024 | London Stock Exchange Group PLC | 1,052,191 | ||||||||
| 4,967 | Marks & Spencer Group PLC | 67,526 | ||||||||
| 2,379 | Persimmon PLC | 52,058 | ||||||||
| 17,840 | Premier Farnell PLC | 60,206 | ||||||||
| 3,226 | Punch Taverns PLC | 67,642 | ||||||||
186
Table of Contents
| Shares | Value | |||||||||
| United Kingdom (continued) | ||||||||||
| 17,664 | Rank Group PLC | $ | 37,769 | |||||||
| 4,552 | Resolution PLC | 69,208 | ||||||||
| 2,536 | Reuters Group PLC | 34,965 | ||||||||
| 7,159 | Rio Tinto PLC | 671,336 | ||||||||
| 70,574 | @ | Rolls-Royce Group PLC | 791,763 | |||||||
| 2,851,189 | @ | Rolls-Royce Group PLC — B Shares | 6,521 | |||||||
| 145,578 | Royal Bank of Scotland Group PLC | 1,572,245 | ||||||||
| 12,956 | Sage Group PLC | 65,379 | ||||||||
| 12,543 | Smith & Nephew PLC | 169,865 | ||||||||
| 7,569 | SSL International PLC | 81,297 | ||||||||
| 10,040 | Standard Life PLC | 59,572 | ||||||||
| 4,695 | Tate & Lyle PLC | 42,605 | ||||||||
| 7,333 | Tesco PLC | 74,596 | ||||||||
| 6,120 | @ | Thomas Cook Group PLC | 38,176 | |||||||
| 1,873 | Travis Perkins PLC | 56,849 | ||||||||
| 22,009 | Unilever PLC | 746,314 | ||||||||
| 259,346 | Vodafone Group PLC | 1,021,965 | ||||||||
| 2,285 | Wolseley PLC | 39,742 | ||||||||
| 22,558,593 | ||||||||||
| Total Common Stock (Cost $100,434,013) | 112,057,961 | |||||||||
| EXCHANGE-TRADED FUNDS: 1.4% | ||||||||||
| United States: 1.4% | ||||||||||
| 20,500 | iShares MSCI EAFE Index Fund | 1,765,050 | ||||||||
| Total Exchange-Traded Funds (Cost $1,712,166) | 1,765,050 | |||||||||
| MUTUAL FUNDS: 0.0% | ||||||||||
| Australia: 0.0% | ||||||||||
| 13,452 | ** | ING Industrial Fund | 35,251 | |||||||
| Total Mutual Funds (Cost $24,165) | 35,251 | |||||||||
| PREFERRED STOCK: 2.9% | ||||||||||
| Australia: 0.0% | ||||||||||
| 168 | BBI EPS Ltd. | 141 | ||||||||
| 141 | ||||||||||
| Germany: 2.9% | ||||||||||
| 309 | Porsche AG | 824,407 | ||||||||
| 5,730 | RWE AG | 694,324 | ||||||||
| 10,441 | Volkswagen AG | 1,978,669 | ||||||||
| 3,497,400 | ||||||||||
| Total Preferred Stock (Cost $1,534,316) | 3,497,541 | |||||||||
Total Investments in Securities (Cost $103,704,660)* | 95.4 | % | $ | 117,355,803 | ||||||||
Other Assets and Liabilities-Net | 4.6 | 5,661,624 | ||||||||||
Net Assets | 100.0 | % | $ | 123,017,427 | ||||||||
| @ | Non-income producing security | |
| ** | Investment in affiliate | |
| * | Cost for federal income tax purposes is $104,374,632. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 15,807,220 | ||
| Gross Unrealized Depreciation | (2,826,049 | ) | ||
| Net Unrealized Appreciation | $ | 12,981,171 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Advertising | 0.0 | % | ||
| Aerospace/ Defense | 1.0 | |||
| Agriculture | 1.3 | |||
| Airlines | 0.7 | |||
| Apparel | 0.1 | |||
| Auto Manufacturers | 4.5 | |||
| Auto Parts & Equipment | 0.1 | |||
| Banks | 15.4 | |||
| Beverages | 1.2 | |||
| Biotechnology | 0.2 | |||
| Building Materials | 1.6 | |||
| Chemicals | 1.6 | |||
| Commercial Services | 0.1 | |||
| Computers | 0.1 | |||
| Distribution/ Wholesale | 0.5 | |||
| Diversified Financial Services | 2.8 | |||
| Electric | 4.4 | |||
| Electrical Components & Equipment | 0.4 | |||
| Electronics | 1.0 | |||
| Engineering & Construction | 2.4 | |||
| Entertainment | 0.1 | |||
| Food | 3.7 | |||
| Food Service | 0.8 | |||
| Forest Products & Paper | 0.1 | |||
| Gas | 0.8 | |||
| Hand/ Machine Tools | 0.5 | |||
| Healthcare — Products | 0.2 | |||
| Holding Companies — Diversified | 0.7 | |||
| Home Builders | 0.3 | |||
| Home Furnishings | 0.8 | |||
| Household Products/ Wares | 0.4 | |||
| Housewares | 0.0 | |||
| Insurance | 3.7 | |||
| Internet | 0.3 | |||
| Investment Companies | 0.0 | |||
| Iron/ Steel | 2.1 | |||
| Leisure Time | 0.4 | |||
| Lodging | 0.1 | |||
| Machinery — Construction & Mining | 1.0 | |||
| Machinery — Diversified | 1.3 | |||
| Media | 1.7 | |||
| Metal Fabricate/ Hardware | 0.1 | |||
| Mining | 4.6 | |||
| Miscellaneous Manufacturing | 0.8 | |||
| Office/ Business Equipment | 1.2 | |||
| Oil & Gas | 6.7 | |||
| Oil & Gas Services | 0.1 | |||
| Packaging & Containers | 0.0 | |||
| Pharmaceuticals | 4.9 | |||
| Real Estate | 3.0 | |||
| Retail | 2.2 | |||
| Semiconductors | 0.9 | |||
| Software | 0.1 | |||
| Telecommunications | 7.7 | |||
| Toys/ Games/ Hobbies | 0.1 | |||
| Transportation | 2.5 | |||
| Venture Capital | 0.6 | |||
| Water | 0.1 | |||
| Other Long-Term Investments | 1.4 | |||
| Other Assets and Liabilities — Net | 4.6 | |||
Net Assets | 100.0 | % | ||
187
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 98.9% | ||||||||||
| Australia: 5.3% | ||||||||||
| 59,965 | BHP Billiton Ltd. | $ | 2,611,166 | |||||||
| 26,100 | Rio Tinto Ltd. | 2,709,167 | ||||||||
| 51,886 | Woodside Petroleum Ltd. | 2,539,206 | ||||||||
| 7,859,539 | ||||||||||
| Austria: 1.2% | ||||||||||
| 21,891 | Erste Bank der Oesterreichischen Sparkassen AG | 1,782,189 | ||||||||
| 1,782,189 | ||||||||||
| Brazil: 6.1% | ||||||||||
| 62,287 | Banco Itau Holding Financeira SA ADR | 1,778,294 | ||||||||
| 20,912 | Cia de Bebidas das Americas ADR | 1,708,720 | ||||||||
| 81,245 | Cia Vale do Rio Doce ADR | 3,061,312 | ||||||||
| 25,222 | Petroleo Brasileiro SA ADR | 2,411,980 | ||||||||
| 8,960,306 | ||||||||||
| Canada: 5.0% | ||||||||||
| 54,981 | Cameco Corp. | 2,696,818 | ||||||||
| 61,667 | Manulife Financial Corp. | 2,860,732 | ||||||||
| 16,505 | Suncor Energy, Inc. | 1,802,841 | ||||||||
| 7,360,391 | ||||||||||
| China: 2.5% | ||||||||||
| 29,979 | @ | Focus Media Holding Ltd. ADR | 1,858,698 | |||||||
| 648,000 | @ | Foxconn International Holdings Ltd. | 1,806,910 | |||||||
| 3,665,608 | ||||||||||
| Denmark: 2.1% | ||||||||||
| 33,991 | @ | Vestas Wind Systems A/ S | 3,049,449 | |||||||
| 3,049,449 | ||||||||||
| France: 6.6% | ||||||||||
| 36,717 | AXA SA | 1,649,190 | ||||||||
| 19,505 | Electricite de France | 2,346,344 | ||||||||
| 26,154 | Iliad SA | 2,748,649 | ||||||||
| 12,394 | LVMH Moet Hennessy Louis Vuitton SA | 1,601,095 | ||||||||
| 17,408 | Total SA ADR | 1,403,259 | ||||||||
| 9,748,537 | ||||||||||
| Germany: 4.0% | ||||||||||
| 31,394 | Adidas AG | 2,086,278 | ||||||||
| 36,360 | SAP AG ADR | 1,973,621 | ||||||||
| 7,283 | Wacker Chemie AG | 1,782,305 | ||||||||
| 5,842,204 | ||||||||||
| Greece: 1.5% | ||||||||||
| 32,752 | National Bank of Greece SA | 2,288,596 | ||||||||
| 2,288,596 | ||||||||||
| Hong Kong: 2.3% | ||||||||||
| 201,200 | Esprit Holdings Ltd. | 3,360,302 | ||||||||
| 3,360,302 | ||||||||||
| India: 3.1% | ||||||||||
| 18,233 | HDFC Bank Ltd. ADR | 2,534,387 | ||||||||
| 40,089 | Infosys Technologies Ltd. ADR | 2,042,134 | ||||||||
| 4,576,521 | ||||||||||
| Israel: 1.2% | ||||||||||
| 41,398 | Teva Pharmaceutical Industries Ltd. ADR | 1,821,926 | ||||||||
| 1,821,926 | ||||||||||
| Italy: 3.7% | ||||||||||
| 64,405 | Saipem S.p.A. | 2,858,421 | ||||||||
| 304,625 | UniCredito Italiano S.p.A. | 2,620,508 | ||||||||
| 5,478,929 | ||||||||||
| Japan: 12.1% | ||||||||||
| 67,000 | NGK Insulators Ltd. | 2,375,222 | ||||||||
| 42,000 | Nitto Denko Corp. | 2,050,426 | ||||||||
| 9,900 | ORIX Corp. | 2,030,750 | ||||||||
| 101,000 | Sharp Corp. | 1,593,162 | ||||||||
| 16,600 | SMC Corp. | 2,223,611 | ||||||||
| 227 | Sumitomo Mitsui Financial Group, Inc. | 1,859,431 | ||||||||
| 201,000 | Toshiba Corp. | 1,702,124 | ||||||||
| 39,000 | Toyota Motor Corp. | 2,232,524 | ||||||||
| 17,400 | Yamada Denki Co., Ltd. | 1,793,981 | ||||||||
| 17,861,231 | ||||||||||
| Luxembourg: 2.2% | ||||||||||
| 27,417 | @ | Millicom International Cellular SA | 3,220,949 | |||||||
| 3,220,949 | ||||||||||
| Mexico: 1.1% | ||||||||||
| 40,212 | Wal-Mart de Mexico SA de CV ADR | 1,626,785 | ||||||||
| 1,626,785 | ||||||||||
| Netherlands: 1.3% | ||||||||||
| 45,466 | Koninklijke Philips Electronics NV- NY Shares | 1,879,564 | ||||||||
| 1,879,564 | ||||||||||
| Norway: 1.7% | ||||||||||
| 47,906 | @ | Renewable Energy Corp. A/S | 2,460,602 | |||||||
| 2,460,602 | ||||||||||
| Singapore: 1.4% | ||||||||||
| 196,000 | Keppel Corp., Ltd. | 2,014,710 | ||||||||
| 2,014,710 | ||||||||||
| South Korea: 2.2% | ||||||||||
| 20,598 | Hyundai Motor Co. | 1,636,862 | ||||||||
| 5,176 | # | Samsung Electronics GDR | 1,580,326 | |||||||
| 3,217,188 | ||||||||||
| Spain: 5.1% | ||||||||||
| 101,674 | Banco Bilbao Vizcaya Argentaria SA | 2,573,054 | ||||||||
| 101,728 | Banco Santander Central Hispano SA | 2,224,759 | ||||||||
| 82,083 | Telefonica SA | 2,717,861 | ||||||||
| 7,515,674 | ||||||||||
| Switzerland: 12.5% | ||||||||||
| 96,296 | ABB Ltd. | 2,911,065 | ||||||||
| 16,015 | Holcim Ltd. | 1,830,835 | ||||||||
| 4,303 | Nestle SA | 1,987,478 | ||||||||
| 5,529 | Nobel Biocare Holding AG | 1,614,104 | ||||||||
| 33,047 | Novartis AG | 1,757,913 | ||||||||
| 14,500 | Roche Holding AG | 2,476,646 | ||||||||
| 8,302 | Syngenta AG | 2,008,201 | ||||||||
| 12,733 | Synthes, Inc. | 1,589,903 | ||||||||
| 43,360 | UBS AG — Reg | 2,324,632 | ||||||||
| 18,500,777 | ||||||||||
| Taiwan: 1.0% | ||||||||||
| 142,832 | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 1,521,161 | ||||||||
| 1,521,161 | ||||||||||
188
Table of Contents
| Shares | Value | |||||||||
| United Kingdom: 13.7% | ||||||||||
| 687,437 | ARM Holdings PLC | $ | 2,121,200 | |||||||
| 112,673 | @ | Autonomy Corp. PLC | 2,310,879 | |||||||
| 141,484 | Barclays PLC | 1,790,685 | ||||||||
| 127,229 | British Sky Broadcasting PLC | 1,801,860 | ||||||||
| 154,449 | ICAP PLC | 1,885,880 | ||||||||
| 262,109 | Michael Page International PLC | 2,395,754 | ||||||||
| 172,110 | Prudential PLC | 2,811,674 | ||||||||
| 26,021 | Reckitt Benckiser PLC | 1,511,572 | ||||||||
| 132,213 | Smith & Nephew PLC | 1,790,505 | ||||||||
| 168,957 | Tesco PLC | 1,718,739 | ||||||||
| 20,138,748 | ||||||||||
Total Investments in Securities (Cost $117,981,825)* | 98.9 | % | $ | 145,751,886 | ||||||||
Other Assets and Liabilities-Net | 1.1 | 1,654,341 | ||||||||||
Net Assets | 100.0 | % | $ | 147,406,227 | ||||||||
| @ | 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| * | Cost for federal income tax purposes is $119,703,678. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 27,958,074 | ||
| Gross Unrealized Depreciation | (1,909,866 | ) | ||
| Net Unrealized Appreciation | $ | 26,048,208 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Advertising | 1.3 | % | ||
| Apparel | 3.7 | |||
| Auto Manufacturers | 2.6 | |||
| Banks | 13.2 | |||
| Beverages | 1.2 | |||
| Building Materials | 1.2 | |||
| Chemicals | 4.0 | |||
| Commercial Services | 1.6 | |||
| Diversified Financial Services | 4.2 | |||
| Electric | 1.6 | |||
| Electrical Components & Equipment | 4.3 | |||
| Electronics | 2.9 | |||
| Energy — Alternate Sources | 1.7 | |||
| Engineering & Construction | 2.0 | |||
| Food | 2.5 | |||
| Hand/ Machine Tools | 1.5 | |||
| Healthcare — Products | 3.4 | |||
| Holding Companies — Diversified | 2.5 | |||
| Household Products/ Wares | 1.0 | |||
| Insurance | 5.0 | |||
| Internet | 1.9 | |||
| Media | 1.2 | |||
| Mining | 7.5 | |||
| Oil & Gas | 5.5 | |||
| Oil & Gas Services | 1.9 | |||
| Pharmaceuticals | 4.1 | |||
| Retail | 2.3 | |||
| Semiconductors | 3.5 | |||
| Software | 4.3 | |||
| Telecommunications | 5.3 | |||
| Other Assets and Liabilities — Net | 1.1 | |||
Net Assets | 100.0 | % | ||
189
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 88.7% | ||||||||||
| Australia: 8.9% | ||||||||||
| 21,983 | Australia & New Zealand Banking Group Ltd. | $ | 620,629 | |||||||
| 59,496 | Coca-Cola Amatil Ltd. | 568,592 | ||||||||
| 105,525 | Foster’s Group Ltd. | 630,064 | ||||||||
| 114,439 | Insurance Australia Group | 503,406 | ||||||||
| 31,688 | Publishing & Broadcasting Ltd. | 618,571 | ||||||||
| 52,362 | Stockland | 439,861 | ||||||||
| 26,010 | Suncorp-Metway Ltd. | 494,162 | ||||||||
| 34,219 | TABCORP Holdings Ltd. | 497,961 | ||||||||
| 15,739 | Wesfarmers Ltd. | 647,640 | ||||||||
| 22,492 | Westfield Group | 459,892 | ||||||||
| 5,480,778 | ||||||||||
| Belgium: 3.5% | ||||||||||
| 12,633 | Belgacom SA | 605,385 | ||||||||
| 17,547 | Elia System Operator SA | 727,717 | ||||||||
| 24,920 | Fortis | 800,658 | ||||||||
| 6,036 | @ | Fortis | 87 | |||||||
| 2,133,847 | ||||||||||
| Brazil: 1.6% | ||||||||||
| 7,334 | Petroleo Brasileiro SA ADR | 610,115 | ||||||||
| 16,512 | Tele Norte Leste Participacoes SA ADR | 359,962 | ||||||||
| 970,077 | ||||||||||
| Canada: 5.4% | ||||||||||
| 18,207 | Bell Aliant Regional Communications Income Fund | 609,438 | ||||||||
| 19,300 | Enerplus Resources Fund | 933,734 | ||||||||
| 8,024 | Fording Canadian Coal Trust | 292,234 | ||||||||
| 39,826 | Precision Drilling Trust | 725,987 | ||||||||
| 17,801 | TransCanada Corp. | 757,153 | ||||||||
| 3,318,546 | ||||||||||
| Denmark: 1.5% | ||||||||||
| 20,613 | Danske Bank A/ S | 912,362 | ||||||||
| 912,362 | ||||||||||
| Finland: 1.2% | ||||||||||
| 32,157 | UPM-Kymmene OYJ | 722,345 | ||||||||
| 722,345 | ||||||||||
| France: 6.5% | ||||||||||
| 8,231 | BNP Paribas | 912,253 | ||||||||
| 16,410 | France Telecom SA | 606,842 | ||||||||
| 5,380 | Societe Generale | 908,898 | ||||||||
| 7,791 | Total SA | 628,703 | ||||||||
| 20,066 | Vivendi | 906,769 | ||||||||
| 3,963,465 | ||||||||||
| Greece: 1.0% | ||||||||||
| 14,837 | OPAP SA | 607,460 | ||||||||
| 607,460 | ||||||||||
| Hong Kong: 0.6% | ||||||||||
| 57,500 | CLP Holdings Ltd. | 388,591 | ||||||||
| 388,591 | ||||||||||
| Hungary: 0.5% | ||||||||||
| 10,633 | Magyar Telekom Telecommunications PLC ADR | 285,390 | ||||||||
| 285,390 | ||||||||||
| Ireland: 2.5% | ||||||||||
| 36,095 | Allied Irish Banks PLC | 911,821 | ||||||||
| 27,746 | Irish Life & Permanent PLC | 635,638 | ||||||||
| 1,547,459 | ||||||||||
| Israel: 0.6% | ||||||||||
| 71,627 | Bank Hapoalim BM | 396,557 | ||||||||
| 396,557 | ||||||||||
| Italy: 13.1% | ||||||||||
| 90,653 | Enel S.p.A. | 1,086,960 | ||||||||
| 30,154 | ENI S.p.A. | 1,101,015 | ||||||||
| 136,698 | Intesa Sanpaolo S.p.A. | 1,084,426 | ||||||||
| 22,415 | Italcementi S.p.A. RNC | 374,156 | ||||||||
| 69,798 | Mediaset S.p.A. | 723,956 | ||||||||
| 87,156 | Milano Assicurazioni S.p.A. | 728,523 | ||||||||
| 6,109 | Pirelli & C Real Estate S.p.A. | 302,893 | ||||||||
| 233,540 | Telecom Italia S.p.A. RNC | 604,841 | ||||||||
| 229,504 | Terna S.p.A | 899,577 | ||||||||
| 127,615 | UniCredito Italiano S.p.A. | 1,097,796 | ||||||||
| 8,004,143 | ||||||||||
| Luxembourg: 0.9% | ||||||||||
| 293,825 | @,#,X | Lite-On Technology Corp. | 536,818 | |||||||
| 536,818 | ||||||||||
| Netherlands: 1.8% | ||||||||||
| 25,138 | Royal Dutch Shell PLC | 1,102,937 | ||||||||
| 1,102,937 | ||||||||||
| New Zealand: 0.6% | ||||||||||
| 115,173 | Telecom Corp. of New Zealand Ltd. | 386,884 | ||||||||
| 386,884 | ||||||||||
| Norway: 1.3% | ||||||||||
| 46,808 | DNB NOR ASA | 775,711 | ||||||||
| 775,711 | ||||||||||
| Poland: 0.7% | ||||||||||
| 47,476 | Telekomunikacja Polska SA | 449,787 | ||||||||
| 449,787 | ||||||||||
| South Korea: 1.4% | ||||||||||
| 15,159 | KT Corp. ADR | 356,540 | ||||||||
| 5,764 | S-Oil Corp. | 523,505 | ||||||||
| 880,045 | ||||||||||
| Spain: 3.7% | ||||||||||
| 36,154 | Banco Bilbao Vizcaya Argentaria SA | 914,946 | ||||||||
| 25,248 | Gestevision Telecinco SA | 729,709 | ||||||||
| 18,269 | Telefonica SA | 604,907 | ||||||||
| 2,249,562 | ||||||||||
| Sweden: 2.2% | ||||||||||
| 40,703 | Svenska Cellulosa AB — B Shares | 719,184 | ||||||||
| 61,820 | TeliaSonera AB | 609,902 | ||||||||
| 1,329,086 | ||||||||||
| Taiwan: 1.0% | ||||||||||
| 57,843 | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | 616,028 | ||||||||
| 616,028 | ||||||||||
| Thailand: 1.1% | ||||||||||
| 99,000 | Advanced Info Service PCL | 261,290 | ||||||||
| 56,600 | Siam Cement PCL | 438,682 | ||||||||
| 699,972 | ||||||||||
| United Kingdom: 27.1% | ||||||||||
| 19,145 | AstraZeneca PLC | 942,799 | ||||||||
| 46,580 | Aviva PLC | 733,890 | ||||||||
190
Table of Contents
| Shares | Value | |||||||||
| United Kingdom (continued) | ||||||||||
| 72,197 | Barclays PLC | $ | 913,758 | |||||||
| 54,871 | BBA Aviation PLC | 276,368 | ||||||||
| 84,538 | BP PLC | 1,099,842 | ||||||||
| 24,057 | British American Tobacco PLC | 916,515 | ||||||||
| 89,285 | BT Group PLC | 606,892 | ||||||||
| 31,625 | Diageo PLC | 725,592 | ||||||||
| 247,368 | DSG International PLC | 668,118 | ||||||||
| 35,797 | GlaxoSmithKline PLC | 919,482 | ||||||||
| 101,495 | Hiscox Ltd. | 607,650 | ||||||||
| 45,930 | HSBC Holdings PLC | 910,640 | ||||||||
| 251,141 | Legal & General Group PLC | 733,176 | ||||||||
| 80,335 | Lloyds TSB Group PLC | 912,569 | ||||||||
| 78,089 | Rexam PLC | 882,490 | ||||||||
| 102,854 | Royal Bank of Scotland Group PLC | 1,110,826 | ||||||||
| 27,893 | Scottish & Southern Energy PLC | 904,509 | ||||||||
| 30,029 | Severn Trent PLC | 907,355 | ||||||||
| 99,184 | Tate & Lyle PLC | 900,056 | ||||||||
| 59,851 | United Utilities PLC | 909,954 | ||||||||
| 16,582,481 | ||||||||||
| Total Common Stock (Cost $51,040,355) | 54,340,331 | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 0.9% | ||||||||||
| Germany: 0.4% | ||||||||||
| 13,483 | @ | Alstria Office AG | 237,141 | |||||||
| 237,141 | ||||||||||
| Netherlands: 0.5% | ||||||||||
| 3,504 | Corio NV | 307,688 | ||||||||
| 307,688 | ||||||||||
| Total Real Estate Investment Trusts (Cost $544,750) | 544,829 | |||||||||
| EQUITY-LINKED SECURITIES: 0.6% | ||||||||||
| Luxembourg: 0.6% | ||||||||||
| 143,000 | @,X | Formosa Chemicals & Fibre Corp. (Counterparty: Merrill) | 383,981 | |||||||
| Total Equity-Linked Securities (Cost $345,100) | 383,981 | |||||||||
| WARRANTS: 2.0% | ||||||||||
| Ireland: 0.6% | ||||||||||
| 598,000 | X | Mega Financial Holding Co., Ltd. (Issuer: Merrill) | 389,438 | |||||||
| 389,438 | ||||||||||
| Luxembourg: 1.4% | ||||||||||
| 140,000 | Acer, Inc. (Issuer: Citigroup Global Markets) | 327,880 | ||||||||
| 115,379 | X | Novatek Microelectronics Corp., Ltd. (Issuer: Merrill) | 530,601 | |||||||
| 858,481 | ||||||||||
| Total Warrants (Cost $1,156,687) | 1,247,919 | |||||||||
Total Investments in Securities (Cost $53,086,892)* | 92.2 | % | $ | 56,517,060 | ||||||||
Other Assets and Liabilities-Net | 7.8 | 4,789,231 | ||||||||||
Net Assets | 100.0 | % | $ | 61,306,291 | ||||||||
| @ | 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| * | Cost for federal income tax purposes is $53,306,320. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 3,591,741 | ||
| Gross Unrealized Depreciation | (381,001 | ) | ||
| Net Unrealized Appreciation | $ | 3,210,740 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Aerospace/ Defense | 0.4 | % | ||
| Agriculture | 1.5 | |||
| Banks | 22.3 | |||
| Beverages | 3.1 | |||
| Building Materials | 1.3 | |||
| Chemicals | 0.6 | |||
| Coal | 0.5 | |||
| Computers | 1.4 | |||
| Diversified Financial Services | 1.6 | |||
| Electric | 6.5 | |||
| Entertainment | 1.8 | |||
| Food | 1.5 | |||
| Forest Products & Paper | 2.4 | |||
| Insurance | 5.4 | |||
| Media | 4.9 | |||
| Miscellaneous Manufacturing | 1.1 | |||
| Oil & Gas | 11.0 | |||
| Packaging & Containers | 1.4 | |||
| Pharmaceuticals | 3.0 | |||
| Pipelines | 1.2 | |||
| Real Estate | 2.0 | |||
| Real Estate Investment Trusts: Diversified | 0.5 | |||
| Real Estate Investment Trusts: Office Property | 0.4 | |||
| Retail | 1.1 | |||
| Semiconductors | 1.9 | |||
| Telecommunications | 10.4 | |||
| Water | 3.0 | |||
| Other Assets and Liabilities — Net | 7.8 | |||
Net Assets | 100.0 | % | ||
191
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 97.7% | ||||||||||
| Belgium: 1.7% | ||||||||||
| 25,372 | InBev NV | $ | 2,401,377 | |||||||
| 2,401,377 | ||||||||||
| Brazil: 1.4% | ||||||||||
| 125,212 | @,L | NET Servicos de Comunicacao SA ADR | 2,013,409 | |||||||
| 2,013,409 | ||||||||||
| Canada: 5.4% | ||||||||||
| 58,900 | Barrick Gold Corp. | 2,599,257 | ||||||||
| 45,700 | @,L | Gildan Activewear, Inc. | 2,053,301 | |||||||
| 87,900 | L | GoldCorp, Inc. | 3,087,927 | |||||||
| 7,740,485 | ||||||||||
| China: 0.0% | ||||||||||
| 24,500 | @,# | Alibaba.com Ltd. | 42,676 | |||||||
| 42,676 | ||||||||||
| France: 1.7% | ||||||||||
| 12,044 | PPR | 2,395,191 | ||||||||
| 2,395,191 | ||||||||||
| Germany: 4.9% | ||||||||||
| 10,107 | Allianz AG | 2,280,274 | ||||||||
| 56,191 | @ | GEA Group AG | 2,101,055 | |||||||
| 53,915 | Lanxess | 2,675,876 | ||||||||
| 7,057,205 | ||||||||||
| Greece: 2.0% | ||||||||||
| 40,632 | National Bank of Greece SA | 2,839,223 | ||||||||
| 2,839,223 | ||||||||||
| Hong Kong: 11.0% | ||||||||||
| 970,000 | China Unicom Ltd. | 2,330,428 | ||||||||
| 719,000 | Hengan International Group Co., Ltd. | 2,804,150 | ||||||||
| 862,000 | Li & Fung Ltd. | 4,090,494 | ||||||||
| 1,054,000 | New World Development Ltd. | 3,798,873 | ||||||||
| 786,793 | Sino Land Co. | 2,466,322 | ||||||||
| 27,500 | Swire Pacific Ltd. | 392,751 | ||||||||
| 15,883,018 | ||||||||||
| India: 3.5% | ||||||||||
| 176,978 | Hindustan Construction Co. | 982,012 | ||||||||
| Hindustan Lever Ltd. | 1,906,231 | |||||||||
| 30,805 | Reliance Industries Ltd. | 2,191,679 | ||||||||
| 5,079,922 | ||||||||||
| Italy: 1.8% | ||||||||||
| 85,398 | Finmeccanica S.p.A. | 2,540,272 | ||||||||
| 2,540,272 | ||||||||||
| Japan: 16.0% | ||||||||||
| 344,200 | Hitachi Ltd. | 2,305,036 | ||||||||
| 75,700 | Itochu Techno-Solutions Corp. | 2,702,203 | ||||||||
| 3,634 | L | Monex Beans Holdings, Inc. | 2,511,702 | |||||||
| 27,100 | Murata Manufacturing Co., Ltd. | 1,649,225 | ||||||||
| 35,600 | Nidec Corp. | 2,674,892 | ||||||||
| 172,000 | Nippon Electric Glass Co., Ltd. | 2,923,418 | ||||||||
| 15,870 | ORIX Corp. | 3,255,354 | ||||||||
| 395,000 | Sumitomo Metal Industries Ltd. | 1,955,096 | ||||||||
| 373 | Sumitomo Mitsui Financial Group, Inc. | 3,055,364 | ||||||||
| 23,032,290 | ||||||||||
| Netherlands: 2.1% | ||||||||||
| 159,900 | Royal KPN NV | 3,019,096 | ||||||||
| 3,019,096 | ||||||||||
| Russia: 2.1% | ||||||||||
| 36,964 | L | OAO Gazprom ADR | 1,848,024 | |||||||
| 609,051 | @ | TNK-BP Holding | 1,224,193 | |||||||
| 3,072,217 | ||||||||||
| South Korea: 3.6% | ||||||||||
| 25,938 | Hyundai Development Co. | 2,905,715 | ||||||||
| 4,930 | Lotte Shopping Co., Ltd. | 2,312,825 | ||||||||
| 5,218,540 | ||||||||||
| Sweden: 1.4% | ||||||||||
| 92,532 | Assa Abloy AB | 1,944,236 | ||||||||
| 1,944,236 | ||||||||||
| Switzerland: 6.2% | ||||||||||
| 116,394 | ABB Ltd. | 3,518,635 | ||||||||
| 45,900 | Xstrata PLC | 3,309,658 | ||||||||
| 6,970 | Zurich Financial Services AG | 2,104,466 | ||||||||
| 8,932,759 | ||||||||||
| Taiwan: 1.8% | ||||||||||
| 341,280 | HON HAI Precision Industry Co., Ltd. | 2,616,454 | ||||||||
| 2,616,454 | ||||||||||
| Turkey: 3.7% | ||||||||||
| 161,819 | Enka Insaat Ve Sanayi AS | 2,545,233 | ||||||||
| 401,500 | Turkiye Is Bankasi | 2,765,729 | ||||||||
| 5,310,962 | ||||||||||
| United Kingdom: 22.6% | ||||||||||
| 82,918 | Anglo American PLC | 5,767,614 | ||||||||
| 1,310,718 | ARM Holdings PLC | 4,044,438 | ||||||||
| 142,897 | Capita Group PLC | 2,231,489 | ||||||||
| 179,500 | Diageo PLC | 4,118,380 | ||||||||
| 48,201 | Imperial Tobacco Group PLC | 2,446,655 | ||||||||
| 211,153 | Inmarsat PLC | 2,260,837 | ||||||||
| 360,126 | International Power PLC | 3,671,781 | ||||||||
| 69,793 | Reckitt Benckiser PLC | 4,054,307 | ||||||||
| 92,038 | Wolseley PLC | 1,600,757 | ||||||||
| 165,397 | WPP Group PLC | 2,262,819 | ||||||||
| 32,459,077 | ||||||||||
| United States: 4.8% | ||||||||||
| 53,100 | Alcoa, Inc. | 2,102,229 | ||||||||
| 30,100 | Monsanto Co. | 2,938,663 | ||||||||
| 41,166 | @,L | NRG Energy, Inc. | 1,879,640 | |||||||
| 6,920,532 | ||||||||||
| Total Common Stock (Cost $115,201,177) | 140,518,941 | |||||||||
| SHORT-TERM INVESTMENTS: 8.2% | ||||||||||
| Mutual Fund: 2.8% | ||||||||||
| 4,000,000 | **,S | ING Institutional Prime Money Market Fund | 4,000,000 | |||||||
| Total Mutual Fund (Cost $4,000,000) | 4,000,000 | |||||||||
192
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Repurchase Agreement: 0.4% | ||||||||||
| $ | 574,000 | Morgan Stanley Repurchase Agreement dated 10/31/07, 4.780%, due 11/01/07, $574,076 to be received upon repurchase (Collateralized by $595,000 Federal Home Loan Bank, Discount Note, Market Value $588,574, due 01/30/08) | $ | 574,000 | ||||||
| Total Repurchase Agreement (Cost $574,000) | 574,000 | |||||||||
| Securities Lending CollateralCC: 5.0% | ||||||||||
| 7,242,040 | Bank of New York Mellon Corp. Institutional Cash Reserves | 7,242,040 | ||||||||
| Total Securities Lending Collateral (Cost $7,242,040) | 7,242,040 | |||||||||
| Total Short-Term Investments (Cost $11,816,040) | 11,816,040 | |||||||||
Total Investments in Securities (Cost $127,017,217)* | 105.9 | % | $ | 152,334,981 | ||||||||
Other Assets and Liabilities-Net | (5.9 | ) | �� | (8,506,472 | ) | |||||||
Net Assets | 100.0 | % | $ | 143,828,509 | ||||||||
| @ | 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 footnoted, 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. | |
| S | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| ** | Investment in affiliate | |
| * | Cost for federal income tax purposes is $127,049,189. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 28,620,300 | ||
| Gross Unrealized Depreciation | (3,334,508 | ) | ||
| Net Unrealized Appreciation | $ | 25,285,792 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Aerospace/ Defense | 1.8 | % | ||
| Agriculture | 1.7 | |||
| Apparel | 1.4 | |||
| Banks | 6.0 | |||
| Beverages | 4.5 | |||
| Chemicals | 3.9 | |||
| Commercial Services | 1.5 | |||
| Computers | 1.9 | |||
| Distribution/ Wholesale | 4.0 | |||
| Diversified Financial Services | 2.3 | |||
| Electric | 3.9 | |||
| Electrical Components & Equipment | 1.6 | |||
| Electronics | 6.9 | |||
| Engineering & Construction | 4.9 | |||
| Healthcare — Products | 1.9 | |||
| Holding Companies — Diversified | 1.7 | |||
| Home Builders | 2.0 | |||
| Household Products/ Wares | 4.1 | |||
| Insurance | 3.0 | |||
| Internet | 1.8 | |||
| Iron/ Steel | 1.4 | |||
| Media | 3.0 | |||
| Metal Fabricate/ Hardware | 1.3 | |||
| Mining | 11.7 | |||
| Oil & Gas | 3.7 | |||
| Real Estate | 4.4 | |||
| Retail | 3.3 | |||
| Semiconductors | 2.8 | |||
| Telecommunications | 5.3 | |||
| Short-Term Investments | 8.2 | |||
| Other Assets and Liabilities — Net | (5.9 | ) | ||
Net Assets | 100.0 | % | ||
193
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 65.4% | ||||||||||
| Australia: 19.9% | ||||||||||
| 1,131,000 | Australand Property Group | $ | 2,521,426 | |||||||
| 309,465 | Centro Properties Group | 2,037,160 | ||||||||
| 1,837,800 | CFS Retail Property Trust | 4,197,829 | ||||||||
| 2,384,100 | Challenger Diversified Property Group | 2,360,704 | ||||||||
| 1,732,600 | Charter Hall Group | 4,942,976 | ||||||||
| 1,860,900 | DB Rreef Trust | 3,645,353 | ||||||||
| 1,606,100 | GPT Group | 6,948,967 | ||||||||
| 279,500 | Lend Lease Corp., Ltd. | 5,241,471 | ||||||||
| 1,927,300 | Macquarie CountryWide Trust | 3,628,980 | ||||||||
| 1,678,100 | Macquarie DDR Trust | 1,844,381 | ||||||||
| 1,884,500 | Macquarie Goodman Group | 12,215,669 | ||||||||
| 1,613,100 | Macquarie Office Trust | 2,475,062 | ||||||||
| 549,300 | Mirvac Group | 2,978,899 | ||||||||
| 1,266,100 | Stockland | 10,635,739 | ||||||||
| 2,574,500 | Valad Property Group | 4,565,973 | ||||||||
| 1,731,739 | Westfield Group | 35,408,724 | ||||||||
| �� | 105,649,313 | |||||||||
| Brazil: 2.5% | ||||||||||
| 439,900 | @ | BR Malls Participacoes SA | 6,456,222 | |||||||
| 39,000 | Iguatemi Empresa de Shopping Centers SA | 646,301 | ||||||||
| 298,900 | @ | Mrv Engenharia | 6,215,821 | |||||||
| 13,318,344 | ||||||||||
| Canada: 0.9% | ||||||||||
| 200,550 | Brookfield Properties Co. (U.S. Denominated Security) | 5,007,734 | ||||||||
| 5,007,734 | ||||||||||
| Cayman Islands: 0.9% | ||||||||||
| 1,958,300 | Agile Property Holdings Ltd. | 4,752,877 | ||||||||
| 4,752,877 | ||||||||||
| China: 3.0% | ||||||||||
| 1,421,000 | @ | Country Garden Holdings Co., Ltd. | 2,341,572 | |||||||
| 589,100 | Guangzhou R&F Properties Co., Ltd. | 3,101,453 | ||||||||
| 2,978,300 | @ | Kwg Property Holding Ltd. | 5,610,552 | |||||||
| 1,288,000 | Shimao Property Holdings Ltd. | 4,611,174 | ||||||||
| 15,664,751 | ||||||||||
| Finland: 1.9% | ||||||||||
| 972,228 | Citycon OYJ | 6,343,801 | ||||||||
| 270,230 | Sponda OYJ | 3,719,027 | ||||||||
| 10,062,828 | ||||||||||
| Germany: 0.2% | ||||||||||
| 27,650 | DIC Asset AG | 935,584 | ||||||||
| 935,584 | ||||||||||
| Hong Kong: 15.4% | ||||||||||
| 1,017,100 | Cheung Kong Holdings Ltd. | 19,950,850 | ||||||||
| 1,194,000 | Hang Lung Group Ltd. | 7,050,093 | ||||||||
| 1,358,200 | Hang Lung Properties Ltd. | 6,534,418 | ||||||||
| 783,500 | Hongkong Land Holdings Ltd. | 3,919,611 | ||||||||
| 834,500 | Kerry Properties Ltd. | 7,258,667 | ||||||||
| 398,200 | Mandarin Oriental International Ltd. | 996,650 | ||||||||
| 708,800 | Shangri-La Asia Ltd. | 2,262,089 | ||||||||
| 3,531,700 | Shui On Land Ltd. | 4,916,064 | ||||||||
| 1,366,500 | Sun Hung Kai Properties Ltd. | 26,115,115 | ||||||||
| 514,000 | Wharf Holdings Ltd. | 3,099,154 | ||||||||
| 82,102,711 | ||||||||||
| Isle of Man: 0.3% | ||||||||||
| 23,000 | @ | Hirco PLC | 180,297 | |||||||
| 598,900 | @ | Ishaan Real Estate PLC | 1,320,955 | |||||||
| 1,501,252 | ||||||||||
| Japan: 15.3% | ||||||||||
| 1,070,500 | Mitsubishi Estate Co., Ltd. | 32,091,748 | ||||||||
| 1,135,100 | Mitsui Fudosan Co., Ltd. | 31,401,383 | ||||||||
| 975 | NTT Urban Development Corp. | 2,199,458 | ||||||||
| 445,600 | Sumitomo Realty & Development Co., Ltd. | 15,727,517 | ||||||||
| 81,420,106 | ||||||||||
| Jersey: 0.3% | ||||||||||
| 90,700 | @ | Yatra Capital Ltd. | 1,432,071 | |||||||
| 1,432,071 | ||||||||||
| Norway: 0.5% | ||||||||||
| 198,400 | Norwegian Property ASA | 2,486,042 | ||||||||
| 2,486,042 | ||||||||||
| Philippines: 0.4% | ||||||||||
| 5,747,200 | Ayala Land, Inc. | 2,008,645 | ||||||||
| 2,008,645 | ||||||||||
| Singapore: 3.0% | ||||||||||
| 1,165,300 | Allgreen Properties Ltd. | 1,285,178 | ||||||||
| 1,813,100 | Ascott Group Ltd. | 2,071,626 | ||||||||
| 1,785,200 | CapitaLand Ltd. | 10,051,456 | ||||||||
| 162,000 | Keppel Land Ltd. | 937,109 | ||||||||
| 731,000 | Wing Tai Holdings Ltd. | 1,767,263 | ||||||||
| 16,112,632 | ||||||||||
| Sweden: 0.3% | ||||||||||
| 161,900 | Hufvudstaden AB | 1,783,750 | ||||||||
| 1,783,750 | ||||||||||
| Thailand: 0.2% | ||||||||||
| 1,429,000 | Central Pattana PCL | 1,089,985 | ||||||||
| 1,089,985 | ||||||||||
| United Kingdom: 0.4% | ||||||||||
| 595,900 | Safestore Holdings Ltd. | 2,189,949 | ||||||||
| 2,189,949 | ||||||||||
| Total Common Stock (Cost $272,786,405) | 347,518,574 | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 31.0% | ||||||||||
| Canada: 2.9% | ||||||||||
| 6,600 | @,# | Calloway Real Estate Investment Trust | 175,367 | |||||||
| 69,200 | Calloway Real Estate Investment Trust | 1,838,692 | ||||||||
| 83,700 | Canadian Real Estate Investment Trust | 2,618,255 | ||||||||
| 175,200 | Cominar Real Estate Investment Trust | 3,874,375 | ||||||||
| 285,200 | RioCan Real Estate Investment Trust | 7,016,406 | ||||||||
| 15,523,095 | ||||||||||
| France: 6.4% | ||||||||||
| 90,200 | Klepierre | 4,908,348 | ||||||||
| 5,350 | Societe de la Tour Eiffel | 897,820 | ||||||||
| 18,779 | Societe Immobiliere de Location pour l’Industrie et le Commerce | 2,909,230 | ||||||||
| 102,102 | Unibail-Rodamco | 25,498,989 | ||||||||
| 34,214,387 | ||||||||||
194
Table of Contents
| Shares | Value | |||||||||
| Germany: 0.2% | ||||||||||
| 70,700 | @ | Alstria Office AG | $ | 1,243,480 | ||||||
| 1,243,480 | ||||||||||
| Hong Kong: 0.8% | ||||||||||
| 1,826,500 | Link Real Estate Investment Trust | 4,144,085 | ||||||||
| 4,144,085 | ||||||||||
| Japan: 6.6% | ||||||||||
| 432 | Japan Hotel and Resort, Inc. | 1,480,019 | ||||||||
| 442 | Japan Logistics Fund, Inc. | 3,168,002 | ||||||||
| 333 | Japan Real Estate Investment Corp. | 4,141,535 | ||||||||
| 267 | Japan Retail Fund Investment Corp. | 1,982,749 | ||||||||
| 637 | Kenedix Realty Investment Corp. | 4,435,519 | ||||||||
| 365 | New City Residence Investment Corp. | 1,700,049 | ||||||||
| 498 | Nippon Accommodations Fund, Inc. | 2,980,194 | ||||||||
| 586 | Nippon Building Fund, Inc. | 8,500,502 | ||||||||
| 158 | Nomura Real Estate Residential Fund, Inc. | 977,055 | ||||||||
| 624 | Tokyu Real Estate Investment Trust, Inc. | 5,614,723 | ||||||||
| 34,980,347 | ||||||||||
| Netherlands: 2.3% | ||||||||||
| 63,050 | Corio NV | 5,536,453 | ||||||||
| 58,370 | Eurocommercial Properties NV | 3,445,863 | ||||||||
| 28,700 | Wereldhave NV | 3,428,291 | ||||||||
| 12,410,607 | ||||||||||
| Singapore: 2.2% | ||||||||||
| 1,505,000 | @ | Ascendas Real Estate Investment Trust | 2,714,223 | |||||||
| 2,000,300 | @ | CapitaCommercial Trust | 3,745,589 | |||||||
| 1,014,200 | @ | CapitaMall Trust | 2,588,685 | |||||||
| 3,191,800 | @ | Macquarie MEAG Prime REIT | 2,654,564 | |||||||
| 11,703,061 | ||||||||||
| United Kingdom: 9.6% | ||||||||||
| 257,800 | British Land Co. PLC | 5,832,292 | ||||||||
| 139,400 | Brixton PLC | 1,078,328 | ||||||||
| 291,900 | Derwent Valley Holdings PLC | 10,134,299 | ||||||||
| 156,700 | Great Portland Estates PLC | 1,868,604 | ||||||||
| 408,200 | Hammerson PLC | 9,463,844 | ||||||||
| 422,780 | Land Securities Group PLC | 14,495,475 | ||||||||
| 248,400 | Segro PLC | 2,418,131 | ||||||||
| 467,800 | Shaftesbury PLC | 5,492,276 | ||||||||
| 50,783,249 | ||||||||||
| Total Real Estate Investment Trusts (Cost $167,064,643) | 165,002,311 | |||||||||
| WARRANTS: 0.7% | ||||||||||
| India: 0.7% | ||||||||||
| 406,800 | X | Macquarie Bank Ltd. | 3,973,499 | |||||||
| Total Warrants (Cost $2,505,321) | 3,973,499 | |||||||||
| PURCHASED OPTIONS: 0.3% | ||||||||||
| Brazil: 0.3% | ||||||||||
| 67,800 | Call Option OTC — Merrill Lynch | |||||||||
| Brascan Residential Properties SA (Brazil) Zero Strike Option — Exp 10/22/08 | 540,629 | |||||||||
| 93,500 | X | Call Option OTC — Merrill Lynch | ||||||||
| Rodobens Negocios Imobiliarios SA (Brazil) Zero Strike Option — Exp 01/30/08 | 1,145,350 | |||||||||
| Total Purchased Options (Cost $1,366,650) | 1,685,979 | |||||||||
| Total Long-Term Investments (Cost $443,723,019) | 518,180,363 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 1.5% | ||||||||||
U.S. Government Agency Obligations: 1.5% | ||||||||||
| $ | 7,779,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 7,778,093 | |||||
| Total Short-Term Investments (Cost $7,778,093) | 7,778,093 | |||||||||||
Total Investments in Securities (Cost $451,501,112)* | 98.9 | % | $ | 525,958,456 | ||||||||
Other Assets and Liabilities-Net | 1.1 | 5,842,745 | ||||||||||
Net Assets | 100.0 | % | $ | 531,801,201 | ||||||||
| @ | Non-income producing security | |
| # | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $476,508,663. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 58,535,797 | ||
| Gross Unrealized Depreciation | (9,086,004 | ) | ||
| Net Unrealized Appreciation | $ | 49,449,793 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Engineering & Construction | 0.7 | % | ||
| Holding Companies — Diversified | 0.6 | |||
| Home Builders | 1.2 | |||
| Lodging | 0.6 | |||
| Real Estate | 62.9 | |||
| Real Estate Investment Trusts: Apartments | 0.9 | |||
| Real Estate Investment Trusts: Diversified | 18.8 | |||
| Real Estate Investment Trusts: Hotels | 0.3 | |||
| Real Estate Investment Trusts: Office Property | 6.6 | |||
| Real Estate Investment Trusts: Shopping Centers | 3.8 | |||
| Real Estate Investment Trusts: Warehouse/ Industrial | 0.6 | |||
| Storage/ Warehousing | 0.4 | |||
| Short-Term Investments | 1.5 | |||
| Other Assets and Liabilities — Net | 1.1 | |||
Net Assets | 100.0 | % | ||
195
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 97.0% | ||||||||||
| Australia: 8.3% | ||||||||||
| 319,200 | @ | Aditya Birla Minerals Ltd. | $ | 1,106,500 | ||||||
| 96,733 | Alesco Corp., Ltd. | 1,010,480 | ||||||||
| 95,450 | Ansell Ltd. | 1,106,509 | ||||||||
| 520,700 | @ | Arc Energy Ltd. | 779,302 | |||||||
| 1,365,060 | @ | Australian Worldwide Exploration Ltd. | 3,858,799 | |||||||
| 88,300 | Babcock & Brown Ltd. | 2,556,773 | ||||||||
| 640,905 | Beach Petroleum Ltd. | 881,470 | ||||||||
| 121,900 | @ | Boart Longyear Group | 293,163 | |||||||
| 420,025 | Bradken Ltd. | 5,801,415 | ||||||||
| 1,315,462 | L | Centennial Coal Co., Ltd. | 5,303,981 | |||||||
| 809,514 | Centro Retail Trust | 1,213,773 | ||||||||
| 387,666 | Challenger Financial Services Group Ltd. | 2,316,608 | ||||||||
| 150,600 | Coates Hire Ltd. | 915,216 | ||||||||
| 275,600 | Consolidated Minerals Ltd. | 1,263,552 | ||||||||
| 241,480 | @ | CopperCo Ltd. | 246,416 | |||||||
| 301,206 | Corporate Express Australia Ltd. | 2,057,231 | ||||||||
| 93,486 | Crane Group Ltd. | 1,473,360 | ||||||||
| 93,500 | David Jones Ltd. | 432,931 | ||||||||
| 107,016 | DB Rreef Trust | 209,636 | ||||||||
| 266,595 | Diversified Utility & Energy Trusts | 873,680 | ||||||||
| 152,682 | Downer EDI Ltd. | 952,102 | ||||||||
| 52,985 | Felix Resources Ltd. | 362,830 | ||||||||
| 40,350 | Flight Centre Ltd. | 916,972 | ||||||||
| 16,000 | Incitec Pivot Ltd. | 1,328,919 | ||||||||
| 38,266 | Independence Group NL | 267,529 | ||||||||
| 50,660 | Jubilee Mines NL | 1,128,851 | ||||||||
| 409,579 | Just Group Ltd. | 2,172,408 | ||||||||
| 6,645,774 | Macquarie DDR Trust | 7,304,298 | ||||||||
| 1,152,728 | Macquarie Office Trust | 1,768,689 | ||||||||
| 673,856 | MFS Ltd. | 3,312,206 | ||||||||
| 604,392 | Minara Resources Ltd. | 3,721,079 | ||||||||
| 1,018,080 | Mincor Resources NL | 4,936,730 | ||||||||
| 312,884 | @ | Mount Gibson Iron Ltd. | 884,583 | |||||||
| 94,200 | OneSteel Ltd. | 608,664 | ||||||||
| 895,053 | Oxiana Ltd. | 3,567,124 | ||||||||
| 325,900 | Pacific Brands Ltd. | 1,054,070 | ||||||||
| 728,500 | @ | Pan Australian Resources Ltd. | 745,999 | |||||||
| 636,169 | Perilya Ltd. | 2,352,049 | ||||||||
| 16,749 | @ | Portman Ltd. | 212,973 | |||||||
| 300,160 | Ramsay Health Care Ltd. | 2,984,593 | ||||||||
| 812,604 | Sally Malay Mining Ltd. | 4,599,891 | ||||||||
| 967,846 | Seek Ltd. | 8,470,368 | ||||||||
| 538,730 | Seven Network Ltd. | 6,916,698 | ||||||||
| 22,254 | Southern Cross Broadcasting | 360,864 | ||||||||
| 64,868 | Specialty Fashion Group Ltd. | 100,123 | ||||||||
| 50,993 | Spotless Group Ltd. | 213,517 | ||||||||
| 456,776 | Sunland Group Ltd. | 1,956,126 | ||||||||
| 196,078 | @ | Tap Oil Ltd. | 429,297 | |||||||
| 57,355 | Transfield Services Ltd. | 846,769 | ||||||||
| 26,800 | WorleyParsons Ltd. | 1,211,446 | ||||||||
| 99,388,562 | ||||||||||
| Austria: 0.6% | ||||||||||
| 50,062 | Austria Technologie & Systemtechnik AG | 1,330,684 | ||||||||
| 455,595 | @ | Austrian Airlines | 4,807,610 | |||||||
| 10,721 | @ | Ca Immo International AA | 199,267 | |||||||
| 27,038 | Zumtobel AG | 1,156,612 | ||||||||
| 7,494,173 | ||||||||||
| Belgium: 0.6% | ||||||||||
| 17,129 | Bekaert SA | 2,364,386 | ||||||||
| 5,572 | D’ieteren SA | 2,417,937 | ||||||||
| 22,600 | Omega Pharma SA | 1,516,911 | ||||||||
| 6,495 | Tessenderlo Chemie NV | 413,214 | ||||||||
| 6,712,448 | ||||||||||
| Bermuda: 0.3% | ||||||||||
| 284,837 | Catlin Group Ltd. | 2,979,901 | ||||||||
| 2,979,901 | ||||||||||
| Brazil: 0.1% | ||||||||||
| 26,500 | Cia Paranaense de Energia | 437,162 | ||||||||
| 15,250 | Metalurgica Gerdau SA | 614,177 | ||||||||
| 1,051,339 | ||||||||||
| British Virgin Islands: 0.0% | ||||||||||
| 64,745 | Empire Online Ltd. | 50,148 | ||||||||
| 50,148 | ||||||||||
| Canada: 5.5% | ||||||||||
| 73,100 | AGF Management Ltd. | 2,839,962 | ||||||||
| 5,500 | @ | Air Canada | 98,978 | |||||||
| 5,400 | Atco Ltd. | 362,992 | ||||||||
| 20,500 | @ | Axcan Pharma, Inc. | 422,088 | |||||||
| 119,000 | Biovail Corp. | 2,389,700 | ||||||||
| 40,300 | @ | Blue Pearl Mining Ltd. | 1,065,679 | |||||||
| 308,900 | @ | Breakwater Resources Ltd. | 905,788 | |||||||
| 22,500 | Canaccord Capital, Inc. | 447,785 | ||||||||
| 16,700 | Canfor Pulp Income Fund | 218,860 | ||||||||
| 104,600 | @ | CGI Group, Inc. — Class A | 1,191,442 | |||||||
| 7,900 | Cinram International Income Fund | 109,554 | ||||||||
| 10,200 | Corus Entertainment, Inc. | 537,183 | ||||||||
| 51,600 | Dorel Industries, Inc. | 1,773,076 | ||||||||
| 151,300 | @ | Frontera Copper Corp. | 1,230,068 | |||||||
| 69,300 | Gerdau AmeriSteel Corp. | 947,084 | ||||||||
| 10,700 | Home Capital Group, Inc. | 475,732 | ||||||||
| 920 | @ | Horizon North Logistics, Inc. | 3,555 | |||||||
| 28,100 | Industrial Alliance Insurance | 1,182,125 | ||||||||
| 58,400 | INMET Mining Corp. | 6,244,006 | ||||||||
| 67,100 | @ | Katanga Mining Ltd. | 1,064,053 | |||||||
| 11,400 | Laurentian Bank of Canada | 527,370 | ||||||||
| 48,200 | Linamar Corp. | 1,179,169 | ||||||||
| 14,500 | @ | Major Drilling Group International | 956,280 | |||||||
| 5,600 | Manitoba Telecom Services, Inc. | 278,622 | ||||||||
| 10,400 | @ | Martinrea International, Inc. | 188,811 | |||||||
| 182,900 | Methanex Corp. | 5,585,841 | ||||||||
| 2,700 | Mosaid Technologies, Inc. | 54,077 | ||||||||
| 297,000 | @ | Neo Material Technologies, Inc. | 1,694,628 | |||||||
| 35,800 | North West Company Fund | 825,789 | ||||||||
| 28,500 | Northbridge Financial Corp. | 1,116,286 | ||||||||
| 9,300 | Nova Chemicals Corp. | 337,878 | ||||||||
| 120,900 | @ | Oilexco Incorporated | 2,206,443 | |||||||
| 81,400 | @ | Pacific Stratus Energy Ltd. | 1,197,756 | |||||||
| 121,700 | Parkland Income Fund | 2,182,393 | ||||||||
| 107,900 | Pembina Pipeline Income Fund | 2,050,288 | ||||||||
| 68,800 | @ | Petrolifera Petroleum Ltd. | 1,195,160 | |||||||
| 59,800 | Precision Drilling Trust | 1,090,093 | ||||||||
| 48,000 | @ | QuADRa Mining Ltd. | 1,031,493 | |||||||
| 13,500 | Quebecor, Inc. | 585,931 | ||||||||
| 94,200 | Rothmans, Inc. | 2,461,077 | ||||||||
| 26,000 | Shawcor Ltd. | 1,084,423 | ||||||||
| 541,300 | Sherritt International Corp. | 10,085,090 | ||||||||
| 97,800 | Superior Plus Income Fund | 1,287,919 | ||||||||
| 53,000 | @,L | Taseko Mines Ltd. | 310,050 | |||||||
| 776 | Teck Cominco Ltd. | 38,864 | ||||||||
| 12,900 | TransForce Income Fund | 144,342 | ||||||||
196
Table of Contents
| Shares | Value | |||||||||
| Canada (continued) | ||||||||||
| 38,000 | @ | Westjet Airlines Ltd. | $ | 803,324 | ||||||
| 83,000 | @ | Westjet Airlines Ltd. — variable voting shares | 1,759,900 | |||||||
| 65,769,007 | ||||||||||
| China: 0.1% | ||||||||||
| 912,000 | CG Technologies Holdings Ltd. | 396,088 | ||||||||
| 1,670,000 | Chongqing Iron & Steel Co. | 1,035,591 | ||||||||
| 1,431,679 | ||||||||||
| Cyprus: 0.2% | ||||||||||
| 416,800 | @ | Deep Sea Supply PLC | 1,955,625 | |||||||
| 1,955,625 | ||||||||||
| Denmark: 1.2% | ||||||||||
| 19,525 | @ | Alm. Brand Skadesforsikring A/S | 1,298,233 | |||||||
| 1,900 | Amagerbanken A/S | 111,966 | ||||||||
| 2,600 | D/S Norden | 322,024 | ||||||||
| 12,300 | Dampskibsselskabet Torm A/A | 516,689 | ||||||||
| 24,600 | East Asiatic Co., Ltd. A/S | 1,992,036 | ||||||||
| 7,900 | Flsmidth & Co. A/S | 861,058 | ||||||||
| 3,000 | NKT Holding A/S | 328,645 | ||||||||
| 8,750 | Sjaelso Gruppen | 358,022 | ||||||||
| 3,583 | Solar Holdings A/S | 493,256 | ||||||||
| 53,060 | Sydbank A/S | 2,451,880 | ||||||||
| 47,700 | @ | TK Development | 906,377 | |||||||
| 14,675 | @ | Topdanmark A/S | 2,515,161 | |||||||
| 31,500 | TrygVesta A/S | 2,509,312 | ||||||||
| 14,664,659 | ||||||||||
| Finland: 0.8% | ||||||||||
| 20,818 | Cramo PLC | 782,328 | ||||||||
| 12,200 | Finnair OYJ | 206,386 | ||||||||
| 76,400 | KCI Konecranes OYJ | 3,440,550 | ||||||||
| 219,337 | Oriola-KD OYJ | 1,024,807 | ||||||||
| 32,268 | Ramirent OYJ | 720,899 | ||||||||
| 48,769 | Rautaruukki OYJ | 2,810,565 | ||||||||
| 13,540 | Sponda OYJ | 186,344 | ||||||||
| 7,400 | Wartsila OYJ | 606,601 | ||||||||
| 9,778,480 | ||||||||||
| France: 5.6% | ||||||||||
| 2,186 | Accor SA | 209,429 | ||||||||
| 4,838 | Bacou Dalloz | 680,092 | ||||||||
| 25,945 | Beneteau SA | 740,875 | ||||||||
| 21,983 | BioMerieux | 2,463,348 | ||||||||
| 1,490 | Bonduelle SCA | 194,135 | ||||||||
| 3,620 | Bongrain SA | 425,866 | ||||||||
| 28,442 | Capgemini SA | 1,821,559 | ||||||||
| 1,569 | @ | Club Mediterranee SA | 105,342 | |||||||
| 2,494 | CNP Assurances | 318,659 | ||||||||
| 5,800 | @ | Compagnie Generale de Geophysique SA | 1,898,060 | |||||||
| 30,700 | Compagnie Generale des Etablissements Michelin | 4,134,596 | ||||||||
| 6,550 | Eramet SLN | 2,934,295 | ||||||||
| 10,800 | Euler Hermes SA | 1,451,955 | ||||||||
| 2,262 | Faiveley SA | 177,871 | ||||||||
| 157,493 | @ | Genesys | 375,063 | |||||||
| 7,560 | Groupe Steria SCA | 356,487 | ||||||||
| 69,574 | Haulotte Group | 2,658,772 | ||||||||
| 172,614 | IMS-International Metal Service | 8,323,036 | ||||||||
| 7,200 | Ipsen | 410,762 | ||||||||
| 7,550 | IPSOS | 277,092 | ||||||||
| 20,000 | Neuf Cegetel | 1,014,615 | ||||||||
| 21,651 | Nexans SA | 3,697,222 | ||||||||
| 177,167 | Nexity | 11,827,076 | ||||||||
| 15,528 | Pierre & Vacances | 2,042,431 | ||||||||
| 5,520 | Publicis Groupe | 224,945 | ||||||||
| 91,245 | L | Rallye SA | 7,012,450 | |||||||
| 31,573 | @ | Rhodia SA — Reg | 1,230,480 | |||||||
| 5,000 | @ | Saft Groupe SA | 246,533 | |||||||
| 81,000 | Scor SA | 2,215,357 | ||||||||
| 15,300 | SEB SA | 2,931,393 | ||||||||
| 22,290 | Sequana Capital | 743,422 | ||||||||
| 2,166 | Sopra Group SA | 198,975 | ||||||||
| 25,916 | Teleperformance | 1,036,366 | ||||||||
| 2,567 | Thales SA | 160,465 | ||||||||
| 21,070 | @ | Thomson | 369,304 | |||||||
| 26,784 | @ | UbiSoft Entertainment | 2,208,156 | |||||||
| 10,200 | Valeo SA | 561,551 | ||||||||
| 67,678,035 | ||||||||||
| Germany: 8.8% | ||||||||||
| 5,189 | AMB Generali Holding AG | 809,055 | ||||||||
| 47,004 | Arques Industries AG | 2,041,979 | ||||||||
| 33,050 | Bauer AG | 2,561,220 | ||||||||
| 7,356 | BayWa AG | 480,836 | ||||||||
| 19,589 | Celesio AG | 1,116,224 | ||||||||
| 24,989 | Deutsche Beteiligungs AG | 869,674 | ||||||||
| 35,954 | Deutsche Euroshop AG | 1,445,626 | ||||||||
| 59,050 | Deutsche Lufthansa AG | 1,745,070 | ||||||||
| 247,397 | @ | Deutz AG | 3,383,307 | |||||||
| 6,643 | Draegerwerk AG | 526,937 | ||||||||
| 35,650 | @ | Drillisch AG | 386,720 | |||||||
| 25,025 | @ | Em.Tv Ag | 178,144 | |||||||
| 299,449 | EpCos. AG | 6,043,656 | ||||||||
| 20,653 | Fresenius Medical Care AG & Co. KGaA | 1,086,691 | ||||||||
| 281,014 | Gildemeister AG | 9,013,907 | ||||||||
| 56,873 | Hannover Rueckversicheru — Reg | 2,994,621 | ||||||||
| 10,951 | Hypo Real Estate Holding AG | 650,832 | ||||||||
| 9,375 | Indus Holding AG | 350,205 | ||||||||
| 70,137 | IVG Immobilien AG | 3,187,159 | ||||||||
| 82,824 | @ | IWKA AG | 3,380,529 | |||||||
| 3,259 | Jungheinrich AG | 160,511 | ||||||||
| 134,193 | Kloeckner & Co. AG | 7,101,467 | ||||||||
| 12,796 | Koenig & Bauer AG | 447,108 | ||||||||
| 39,688 | Kontron AG | 996,881 | ||||||||
| 13,950 | Krones AG | 1,279,287 | ||||||||
| 6,258 | Lanxess | 310,593 | ||||||||
| 47,050 | Leoni AG | 2,988,908 | ||||||||
| 14,150 | MPC Muenchmeyer Petersen Capital AG | 1,156,373 | ||||||||
| 240,824 | MTU Aero Engines Holding AG | 14,706,372 | ||||||||
| 152,287 | Norddeutsche Affinerie AG | 6,390,561 | ||||||||
| 27,850 | Praktiker Bau-und Heimwerkermaerkte AG | 1,007,492 | ||||||||
| 6,550 | Rheinmetall AG | 580,540 | ||||||||
| 51,914 | Salzgitter AG | 10,221,345 | ||||||||
| 32,150 | @ | SGL Carbon AG | 1,889,453 | |||||||
| 5,391 | Sixt AG | 292,696 | ||||||||
| 24,950 | Stada Arzneimittel AG | 1,586,213 | ||||||||
| 85,465 | @ | TUI AG | 2,512,675 | |||||||
| 12,931 | Vivacon AG | 300,981 | ||||||||
| 25,771 | Vossloh AG | 3,040,976 | ||||||||
| 5,800 | Wacker Chemie AG | 1,419,383 | ||||||||
| 44,221 | Wincor Nixdorf AG | 4,404,798 | ||||||||
| 34,913 | @ | Wirecard AG | 612,255 | |||||||
| 105,659,260 | ||||||||||
197
Table of Contents
| Shares | Value | |||||||||
| Greece: 0.8% | ||||||||||
| 253,340 | Agricultural Bank of Greece | $ | 1,457,911 | |||||||
| 221,294 | Anek Lines SA | 728,844 | ||||||||
| 43,950 | Metka SA | 1,128,583 | ||||||||
| 132,570 | Sidenor Steel Production & Manufacturing Co. SA | 2,511,266 | ||||||||
| 48,332 | L | Tsakos Energy Navigation Ltd. | 3,363,424 | |||||||
| 9,190,028 | ||||||||||
| Guernsey: 0.0% | ||||||||||
| 2,544 | Mapeley Ltd. | 101,294 | ||||||||
| 101,294 | ||||||||||
| Hong Kong: 3.1% | ||||||||||
| 984,000 | Allied Properties HK Ltd. | 393,024 | ||||||||
| 142,000 | ASM Pacific Technology | 1,113,341 | ||||||||
| 2,500,000 | @ | China Grand Forestry Resources Group Ltd. | 888,476 | |||||||
| 324,000 | Far East Consortium | 151,584 | ||||||||
| 4,408,000 | L | Global Green Tech Group Ltd. | 1,744,273 | |||||||
| 97,000 | Great Eagle Holding Co. | 403,225 | ||||||||
| 176,000 | Hang Lung Group Ltd. | 1,039,210 | ||||||||
| 551,000 | Hopewell Highway Infrastructure Ltd. | 519,618 | ||||||||
| 230,000 | Huabao International Holdings Ltd. | 219,290 | ||||||||
| 180,000 | Industrial and Commercial Bank of China Asia Ltd. | 500,945 | ||||||||
| 395,000 | @ | Jinhui Shipping & Transportation Ltd. | 5,871,420 | |||||||
| 7,500 | Kerry Properties Ltd. | 65,237 | ||||||||
| 560,000 | Luk Fook Holdings International Ltd. | 420,215 | ||||||||
| 1,672,000 | Ming An Holdings Co., Ltd. | 720,010 | ||||||||
| 9,600,000 | Minmetals Resources Ltd. | 8,341,961 | ||||||||
| 249,000 | Pacific Andes Holdings Ltd. | 140,737 | ||||||||
| 2,699,000 | Pacific Basin Shipping Ltd. | 6,046,923 | ||||||||
| 620,000 | Peace Mark Holdings Ltd. | 1,021,514 | ||||||||
| 8,480,000 | Regal Hotels International Holdings Ltd. | 726,922 | ||||||||
| 2,104,000 | Shougang Concord Century Holding | 361,197 | ||||||||
| 10,294,000 | Sinolink Worldwide Holdings | 3,497,301 | ||||||||
| 197,000 | Television Broadcasts Ltd. | 1,276,152 | ||||||||
| 149,194 | Vtech Holdings Ltd. | 1,273,980 | ||||||||
| 710,000 | Xinyi Glass Holding Co., Ltd. | 969,230 | ||||||||
| 37,705,785 | ||||||||||
| India: 0.3% | ||||||||||
| 31,340 | Ashapura Minechem Ltd. | 261,159 | ||||||||
| 31,480 | Bharat Petroleum Corp., Ltd. | 276,372 | ||||||||
| 96,213 | Chennai Petroleum Corp., Ltd. | 820,326 | ||||||||
| 29,207 | Great Eastern Shipping Co., Ltd. | 361,466 | ||||||||
| 234,284 | Hindustan Petroleum Corp. | 1,432,549 | ||||||||
| 33,126 | Kesoram Industries Ltd. | 487,611 | ||||||||
| 3,639,483 | ||||||||||
| Ireland: 0.4% | ||||||||||
| 2,100 | FBD Holdings PLC | 75,405 | ||||||||
| 277,000 | Glanbia PLC | 1,864,089 | ||||||||
| 41,600 | Kerry Group PLC | 1,254,568 | ||||||||
| 49,200 | @ | Smurfit Kappa Group PLC | 992,254 | |||||||
| 7,800 | @ | Smurfit Kappa PLC | 157,353 | |||||||
| 55,700 | United Drug PLC | 279,032 | ||||||||
| 4,622,701 | ||||||||||
| Israel: 0.3% | ||||||||||
| 143,463 | @ | Israel Discount Bank Ltd. | 366,276 | |||||||
| 32,624 | Mizrahi Tefahot Bank Ltd. | 254,869 | ||||||||
| 18,543 | Partner Communications | 351,838 | ||||||||
| 129,000 | L | Partner Communications ADR | 2,475,510 | |||||||
| 40,041 | @ | Super-Sol Ltd. | 158,320 | |||||||
| 3,606,813 | ||||||||||
| Italy: 2.4% | ||||||||||
| 65,300 | ACEA S.p.A. | 1,296,724 | ||||||||
| 81,500 | Aedes S.p.A | 542,710 | ||||||||
| 121,369 | Autostrada Torino-Milano S.p.A. | 2,993,353 | ||||||||
| 117,762 | Azimut Holding S.p.A. | 2,030,505 | ||||||||
| 57,229 | Banco di Desio e della Brianza S.p.A. | 650,130 | ||||||||
| 36,009 | Biesse S.p.A. | 1,124,899 | ||||||||
| 114,100 | Brembo S.p.A. | 1,602,962 | ||||||||
| 22,900 | Cementir S.p.A. | 228,105 | ||||||||
| 324,649 | Cofide S.p.A. | 595,729 | ||||||||
| 129,644 | Cremonini S.p.A. | 398,334 | ||||||||
| 22,600 | Fondiaria-Sai S.p.A. | 1,100,395 | ||||||||
| 88,790 | @ | Gruppo Coin S.p.A. | 808,682 | |||||||
| 199,521 | Indesit Co. S.p.A. | 3,549,986 | ||||||||
| 220,714 | @,L | It Holding S.p.A | 564,285 | |||||||
| 81,503 | @ | KME Group | 229,805 | |||||||
| 25,563 | Marazzi Group S.p.A. | 328,235 | ||||||||
| 99,654 | Navigazione Montanari S.p.A. | 505,409 | ||||||||
| 47,265 | Permasteelisa S.p.A. | 1,240,240 | ||||||||
| 211,200 | Piaggio & C S.p.A. | 950,765 | ||||||||
| 35,248 | Premafin Finanziaria S.p.A. | 113,608 | ||||||||
| 30,163 | Prima Industrie S.p.A. | 1,534,729 | ||||||||
| 82,100 | @ | PRYSMIAN S.p.A. | 2,371,381 | |||||||
| 180,264 | Recordati S.p.A. | 1,808,645 | ||||||||
| 9,900 | Trevi Finanziaria S.p.A. | 208,581 | ||||||||
| 659,900 | Unipol S.p.A. | 2,367,082 | ||||||||
| 29,145,279 | ||||||||||
| Japan: 15.9% | ||||||||||
| 267,000 | 77 Bank Ltd. | 1,803,120 | ||||||||
| 102 | Acca Networks Co., Ltd. | 203,148 | ||||||||
| 58,000 | Adores, Inc. | 129,178 | ||||||||
| 14,000 | Air Water, Inc. | 158,702 | ||||||||
| 36,900 | Aisan Industry Co., Ltd. | 481,449 | ||||||||
| 216,600 | Alpine Electronics, Inc. | 3,482,029 | ||||||||
| 179,100 | AOC Holdings, Inc. | 2,749,370 | ||||||||
| 12,900 | Aoyama Trading Co., Ltd. | 337,218 | ||||||||
| 3,699 | Ardepro Co., Ltd. | 1,243,487 | ||||||||
| 13,000 | Asahi Pretec Corp. | 448,746 | ||||||||
| 132,000 | L | Asahi Soft Drinks Co., Ltd. | 2,419,971 | |||||||
| 63,800 | Atrium Co., Ltd. | 1,779,050 | ||||||||
| 356,000 | Atsugi Co., Ltd. | 495,786 | ||||||||
| 12,000 | Awa Bank Ltd. | 64,393 | ||||||||
| 73,000 | Bank of Nagoya Ltd. | 539,929 | ||||||||
| 601 | Bosch Corp. | 3,144 | ||||||||
| 106,100 | Century Leasing System, Inc. | 1,108,368 | ||||||||
| 1,008,000 | @ | Chori Co., Ltd. | 1,231,819 | |||||||
| 17,300 | Coca-Cola West Holdings Co., Ltd. | 400,504 | ||||||||
| 340,000 | Cosmo Oil Co., Ltd. | 1,482,933 | ||||||||
| 6,000 | Cosmos Initia Co., Ltd. | 22,113 | ||||||||
| 65,000 | Daihen Corp. | 455,170 | ||||||||
| 57,000 | Daiichi Jitsugyo Co., Ltd. | 293,320 | ||||||||
| 13,100 | Daiichikosho Co., Ltd. | 155,077 | ||||||||
| 19,000 | Daimei Telecom Engineering Corp. | 196,878 | ||||||||
| 80 | Daiseki Co., Ltd. | 2,707 | ||||||||
| 34,000 | Daishi Bank Ltd. | 148,613 | ||||||||
| 44,000 | Daito Bank Ltd. | 54,284 | ||||||||
| 217,000 | Daiwa Industries Ltd. | 1,511,081 | ||||||||
| 15,140 | Diamond Lease Co., Ltd. | 524,499 | ||||||||
| 86,500 | Don Quijote Co., Ltd. | 1,759,217 | ||||||||
198
Table of Contents
| Shares | Value | |||||||||
| Japan (continued) | ||||||||||
| 18,000 | @ | Doutor Nichires Holdings Co., Ltd. | $ | 293,798 | ||||||
| 41,000 | Dowa Holdings Co., Ltd. | 480,335 | ||||||||
| 52,000 | Eagle Industry Co., Ltd. | 813,605 | ||||||||
| 38,000 | Eizo Nanao Corp. | 1,277,727 | ||||||||
| 12,000 | Excel Co., Ltd. | 177,205 | ||||||||
| 46,000 | FamilyMart Co., Ltd. | 1,340,633 | ||||||||
| 19,700 | L | Fancl Corp. | 238,738 | |||||||
| 26,000 | Foster Electric Co., Ltd. | 557,597 | ||||||||
| 135,700 | Fuji Machine Manufacturing Co., Ltd. | 3,028,708 | ||||||||
| 17,300 | Fujitsu Frontech Ltd. | 166,145 | ||||||||
| 195,000 | @ | Fujitsu General Ltd. | 1,326,087 | |||||||
| 39,200 | Futaba Industrial Co., Ltd. | 1,101,964 | ||||||||
| 52,400 | Glory Ltd. | 1,740,161 | ||||||||
| 17,520 | Gulliver International Co. | 1,001,074 | ||||||||
| 361,000 | Hanwa Co., Ltd. | 1,844,789 | ||||||||
| 6,300 | Happinet Corp. | 77,921 | ||||||||
| 80,800 | Heiwa Corp. | 909,668 | ||||||||
| 265,000 | Hino Motors Ltd. | 1,910,508 | ||||||||
| 6,000 | Hirano Tecseed Co., Ltd. | 68,666 | ||||||||
| 264,000 | Hitachi Cable Ltd. | 1,765,147 | ||||||||
| 34,000 | Hitachi Kokusai Electric, Inc. | 444,934 | ||||||||
| 113,000 | Hitachi Metals Ltd. | 1,465,892 | ||||||||
| 15,400 | Hitachi Software Engineering Co., Ltd. | 297,539 | ||||||||
| 36,400 | Hitachi Transport System Ltd. | 429,373 | ||||||||
| 210 | Hoosiers Corp. | 87,467 | ||||||||
| 38,200 | Hosiden Corp. | 677,479 | ||||||||
| 98,000 | Hosokawa Micron Corp. | 942,986 | ||||||||
| 38,000 | Hyakugo Bank Ltd. | 227,934 | ||||||||
| 71,000 | Hyakujushi Bank Ltd. | 358,554 | ||||||||
| 114,400 | IBJ Leasing Co., Ltd. | 2,178,240 | ||||||||
| 65,400 | Inabata & Co., Ltd. | 433,598 | ||||||||
| 45,300 | Ines Corp. | 225,808 | ||||||||
| 4,800 | Information Services International-Dentsu Ltd. | 45,146 | ||||||||
| 59,000 | Intec Holdings Ltd. | 863,511 | ||||||||
| 77 | Internet Initiative Japan, Inc. | 302,176 | ||||||||
| 88,100 | Itochu Enex Co., Ltd. | 643,808 | ||||||||
| 172,000 | Iwatani International Corp. | 558,912 | ||||||||
| 21,000 | Izumiya Co., Ltd. | 104,666 | ||||||||
| 123,000 | @ | Izutsuya Co., Ltd. | 132,380 | |||||||
| 85,000 | Japan Aviation Electronics Industry Ltd. | 1,311,293 | ||||||||
| 300,000 | Japan Radio Co., Ltd. | 1,107,016 | ||||||||
| 860,000 | JFE Shoji Holdings, Inc. | 6,622,388 | ||||||||
| 69,000 | Jidosha Buhin Kogyo Co., Ltd. | 402,962 | ||||||||
| 38,000 | Joshin Denki Co., Ltd. | 271,138 | ||||||||
| 91,000 | Juki Corp. | 776,807 | ||||||||
| 16,000 | Juroku Bank Ltd. | 96,818 | ||||||||
| 25,000 | Kanamoto Co., Ltd. | 233,110 | ||||||||
| 2,102,000 | @ | Kanematsu Corp. | 3,657,356 | |||||||
| 59,900 | Kanto Auto Works Ltd. | 817,625 | ||||||||
| 83,833 | Kanto Tsukuba Bank Ltd. | 595,705 | ||||||||
| 209,000 | Kawai Musical Instruments Manufacturing Co., Ltd. | 418,294 | ||||||||
| 308 | Kenedix, Inc. | 679,663 | ||||||||
| 6,600 | Kintetsu World Express, Inc. | 235,939 | ||||||||
| 40,100 | K’S Holdings Corp. | 873,681 | ||||||||
| 38,300 | Kuroda Electric Co., Ltd. | 618,788 | ||||||||
| 28,100 | Kyoden Co., Ltd. | 75,265 | ||||||||
| 36,000 | Kyodo Printing Co., Ltd. | 114,751 | ||||||||
| 13,900 | Kyoei Steel Ltd. | 341,995 | ||||||||
| 324 | Kyoei Tanker Co., Ltd. | 1,313 | ||||||||
| 63,000 | Kyorin Co., Ltd. | 750,493 | ||||||||
| 68,600 | Lintec Corp. | 1,345,488 | ||||||||
| 44,000 | Maeda Road Construction Co., Ltd. | 365,547 | ||||||||
| 55,000 | Marudai Food Co., Ltd. | 136,948 | ||||||||
| 11,000 | Maruei Department Store Co., Ltd. | 32,524 | ||||||||
| 17,200 | L | Megane TOP Co., Ltd. | 166,620 | |||||||
| 18,500 | Mikuni Coca-Cola Bottling Co., Ltd. | 205,716 | ||||||||
| 61,800 | Miraca Holdings, Inc. | 1,458,985 | ||||||||
| 753,000 | Mitsubishi Paper Mills Ltd. | 1,501,408 | ||||||||
| 64,000 | Mitsubishi Steel Manufacturing Co., Ltd. | 311,263 | ||||||||
| 26,000 | Mitsui High-Tec, Inc. | 297,636 | ||||||||
| 70,000 | Mitsui Home Co., Ltd. | 343,149 | ||||||||
| 196,000 | Mitsui Sugar Co., Ltd. | 822,552 | ||||||||
| 17,900 | Mitsumi Electric Co., Ltd. | 824,804 | ||||||||
| 203,500 | Mori Seiki Co., Ltd. | 5,169,027 | ||||||||
| 212,000 | Morinaga Milk Industry Co., Ltd. | 687,539 | ||||||||
| 23,100 | Musashi Seimitsu Industry Co., Ltd. | 745,126 | ||||||||
| 4,000 | I | Nadex Co., Ltd. | 25,054 | |||||||
| 28,700 | NEC Fielding Ltd. | 340,837 | ||||||||
| 11,400 | NEC Leasing Ltd. | 201,502 | ||||||||
| 23,300 | NEC Networks & System Integration Corp. | 253,625 | ||||||||
| 106,000 | Nichias Corp. | 809,368 | ||||||||
| 19,700 | Nichii Gakkan Co. | 328,626 | ||||||||
| 240,000 | Nichirei Corp. | 1,026,122 | ||||||||
| 42,000 | Nifco, Inc. | 982,669 | ||||||||
| 20,400 | Nihon Dempa Kogyo Co., Ltd. | 1,018,618 | ||||||||
| 11,000 | Nippei Toyama Corp. | 97,947 | ||||||||
| 47,000 | Nippo Corp. | 385,381 | ||||||||
| 149,000 | Nippon Chemi-Con Corp. | 1,181,881 | ||||||||
| 199,000 | Nippon Denko Co., Ltd. | 1,500,028 | ||||||||
| 137,000 | Nippon Steel Trading Co., Ltd. | 437,214 | ||||||||
| 265,000 | Nippon Synthetic Chemical Industry Co., Ltd. | 1,769,428 | ||||||||
| 36,000 | Nipro Corp. | 686,850 | ||||||||
| 3,800 | Nishio Rent All Co., Ltd. | 56,161 | ||||||||
| 107,000 | Nissan Shatai Co., Ltd. | 862,057 | ||||||||
| 65,000 | Nisshin Oillio Group Ltd. | 279,636 | ||||||||
| 69,500 | Nissin Kogyo Co., Ltd. | 1,816,067 | ||||||||
| 62,000 | Nittetsu Mining Co., Ltd. | 474,395 | ||||||||
| 33,300 | NSD Co., Ltd. | 522,152 | ||||||||
| 36,000 | Ogaki Kyoritsu Bank Ltd. | 201,330 | ||||||||
| 33,760 | Oiles Corp. | 729,872 | ||||||||
| 51,000 | Oita Bank Ltd. | 309,771 | ||||||||
| 5,170 | Okinawa Electric Power Co., Inc. | 270,451 | ||||||||
| 5,590 | Optex Co., Ltd. | 110,756 | ||||||||
| 4,000 | Osaka Steel Co., Ltd. | 62,186 | ||||||||
| 374,000 | Pacific Metals Co., Ltd. | 4,737,520 | ||||||||
| 30,100 | Parco Co., Ltd. | 421,401 | ||||||||
| 16,400 | Pigeon Corp. | 281,920 | ||||||||
| 35,980 | Resorttrust, Inc. | 787,478 | ||||||||
| 50,900 | Ricoh Leasing Co., Ltd. | 1,188,920 | ||||||||
| 105,300 | Saizeriya Co., Ltd. | 1,847,272 | ||||||||
| 43,000 | San-Ai Oil Co., Ltd. | 184,501 | ||||||||
| 198,000 | Sanden Corp. | 1,190,042 | ||||||||
| 6,100 | Sanei-International Co., Ltd. | 125,969 | ||||||||
| 23,000 | San-In Godo Bank Ltd. | 207,092 | ||||||||
| 342,500 | @ | Sanix, Inc. | 1,144,113 | |||||||
| 63,300 | Santen Pharmaceutical Co., Ltd. | 1,487,990 | ||||||||
| 112,000 | Sanyo Shokai Ltd. | 708,915 | ||||||||
| 188,000 | Sanyo Special Steel Co., Ltd. | 1,269,763 | ||||||||
| 151,000 | Seiko Holdings Corp. | 825,261 | ||||||||
| 64,500 | Shin-Etsu Polymer Co., Ltd. | 525,600 | ||||||||
| 24,700 | @,I | Shinki Co., Ltd. | 23,573 | |||||||
| 139,200 | Shinko Plantech Co., Ltd. | 2,198,340 | ||||||||
| 292,000 | Shinsho Corp. | 1,225,497 | ||||||||
| 660,000 | Shinwa Kaiun Kaisha Ltd. | 6,757,756 | ||||||||
| 80,000 | Shizuoka Gas Co., Ltd. | 395,234 | ||||||||
| 7,971 | Softbank Investment Corp. | 2,528,760 | ||||||||
| 196,800 | Sojitz Corp. | 903,381 | ||||||||
| 611,000 | Sumikin Bussan Corp. | 2,587,109 | ||||||||
199
Table of Contents
| Shares | Value | |||||||||
| Japan (continued) | ||||||||||
| 63,200 | Sumitomo Densetsu Co., Ltd. | $ | 356,913 | |||||||
| 109,000 | Sumitomo Light Metal Industries Ltd. | 188,526 | ||||||||
| 16,070 | Sumitomo Real Estate Sales | 1,165,996 | ||||||||
| 92,500 | Sumitomo Rubber Industries, Inc. | 1,132,851 | ||||||||
| 559 | Suncity Co., Ltd. | 266,620 | ||||||||
| 33,200 | Tachi-S Co., Ltd. | 252,241 | ||||||||
| 96,000 | Taihei Kogyo Co., Ltd. | 499,043 | ||||||||
| 4,000 | Taiyo Yuden Co., Ltd. | 66,359 | ||||||||
| 28,700 | Takeuchi Manufacturing Co., Ltd. | 1,739,594 | ||||||||
| 48,000 | Takisawa Machine Tool Co., Ltd. | 92,041 | ||||||||
| 17,500 | Tamron Co., Ltd. | 679,675 | ||||||||
| 226,000 | Tamura Corp. | 1,117,604 | ||||||||
| 87,000 | TBK Co., Ltd. | 375,753 | ||||||||
| 36,000 | TCM Corp. | 130,200 | ||||||||
| 1,677 | Telepark Corp. | 1,842,650 | ||||||||
| 96,000 | @ | Toa Corp. | 107,768 | |||||||
| 24,500 | Toho Pharmaceutical Co., Ltd. | 431,638 | ||||||||
| 68,000 | Toho Zinc Co., Ltd. | 617,358 | ||||||||
| 88,000 | Tohto Suisan Co., Ltd. | 205,131 | ||||||||
| 53,800 | Tokai Rubber Industries, Inc. | 1,051,610 | ||||||||
| 246,000 | @ | Tokyo Dome Corp. | 1,580,081 | |||||||
| 104,400 | Tokyo Leasing Co., Ltd. | 1,067,010 | ||||||||
| 168,000 | Tokyo Tekko Co., Ltd. | 794,527 | ||||||||
| 2,700 | Tokyu Community Corp. | 72,571 | ||||||||
| 248,000 | @ | Tonichi Carlife Group, Inc. | 348,251 | |||||||
| 52,000 | Topy Industries Ltd. | 155,364 | ||||||||
| 169,000 | Tosoh Corp. | 1,081,675 | ||||||||
| 324,000 | Toyo Kohan Co., Ltd. | 1,812,434 | ||||||||
| 104,000 | Toyo Suisan Kaisha Ltd. | 1,808,068 | ||||||||
| 6,300 | Toyoda Gosei Co., Ltd. | 226,293 | ||||||||
| 53,700 | Toyota Auto Body Co., Ltd. | 867,533 | ||||||||
| 18,000 | Toyota Boshoku Corp. | 591,625 | ||||||||
| 149,000 | Tsubakimoto Chain Co. | 1,029,483 | ||||||||
| 67,700 | Tsumura & Co. | 1,209,620 | ||||||||
| 11,700 | Tsuruha Holdings, Inc. | 404,248 | ||||||||
| 80,000 | Ube Industries Ltd. | 287,258 | ||||||||
| 52,000 | Uchida Yoko Co., Ltd. | 228,977 | ||||||||
| 9,200 | UEX Ltd. | 103,344 | ||||||||
| 67,600 | Urban Corp. | 1,184,153 | ||||||||
| 26,420 | USS Co., Ltd. | 1,730,526 | ||||||||
| 1,029,000 | @ | Victor Co. of Japan Ltd. | 2,185,282 | |||||||
| 17,900 | Waseda Academy Co., Ltd. | 142,691 | ||||||||
| 57 | Wowow, Inc. | 112,040 | ||||||||
| 5,600 | Y A C Co., Ltd. | 68,334 | ||||||||
| 74,000 | Yamaguchi Financial Group, Inc. | 868,238 | ||||||||
| 11,000 | Yamanashi Chuo Bank Ltd. | 64,254 | ||||||||
| 290,500 | Yamato Kogyo Co., Ltd. | 13,587,445 | ||||||||
| 297,400 | Yamazen Corp. | 1,578,557 | ||||||||
| 57,000 | Yaskawa Electric Corp. | 766,803 | ||||||||
| 61,000 | Yokohama Rubber Co., Ltd. | 454,642 | ||||||||
| 1,124,000 | Yuasa Trading Co., Ltd. | 1,721,618 | ||||||||
| 191,388,821 | ||||||||||
| Jersey: 0.0% | ||||||||||
| 12,987 | @ | Meinl European Land Ltd. | 182,787 | |||||||
| 182,787 | ||||||||||
| Liechtenstein: 0.1% | ||||||||||
| 9,500 | Liechtenstein Landesbank | 913,056 | ||||||||
| 2,110 | Verwalt & Privat-Bank AG | 553,151 | ||||||||
| 1,466,207 | ||||||||||
| Malaysia: 0.2% | ||||||||||
| 84,000 | Asiatic Development Bhd | 168,273 | ||||||||
| 253,100 | Bursa Malaysia Bhd | 1,203,568 | ||||||||
| 1,279,000 | Silverlake Axis Ltd. | 594,355 | ||||||||
| 1,966,196 | ||||||||||
| Mexico: 0.1% | ||||||||||
| 22,024 | @ | Dermet De Mexico SA | 2,727 | |||||||
| 38,700 | Gruma SA de CV | 139,011 | ||||||||
| 72,800 | Grupo Mexico SA de CV | 662,284 | ||||||||
| 54,168 | @ | Industrias CH SA — Series B | 213,878 | |||||||
| 111,800 | Mexichem SA de CV | 451,604 | ||||||||
| 1,469,504 | ||||||||||
| Netherlands: 3.7% | ||||||||||
| 118,131 | Aalberts Industries NV | 2,860,686 | ||||||||
| 101,200 | Asm International NV | 2,867,928 | ||||||||
| 49,904 | Beter BED Holdings NV | 1,494,030 | ||||||||
| 29,500 | Binck NV | 678,865 | ||||||||
| 122,869 | Draka Holding | 5,362,327 | ||||||||
| 10,500 | Eriks Group NV | 876,530 | ||||||||
| 10,600 | Fugro NV | 931,756 | ||||||||
| 35,200 | Grontmij | 1,653,154 | ||||||||
| 20,500 | Hunter Douglas NV | 1,917,538 | ||||||||
| 58,800 | Imtech NV | 1,824,549 | ||||||||
| 98,300 | Koninklijke BAM Groep NV | 2,607,311 | ||||||||
| 65,600 | Koninklijke Wessanen NV | 1,109,169 | ||||||||
| 30,441 | Nutreco Holding NV | 2,081,050 | ||||||||
| 302,736 | OCE NV | 6,098,966 | ||||||||
| 29,440 | OPG Groep NV | 1,021,263 | ||||||||
| 6,200 | SBM Offshore NV | 239,257 | ||||||||
| 22,600 | Sligro Food Group NV | 870,037 | ||||||||
| 4,750 | Smit Internationale NV | 461,194 | ||||||||
| 31,000 | Ten Cate NV | 1,273,420 | ||||||||
| 30,400 | TKH Group NV | 778,105 | ||||||||
| 8,686 | @ | TomTom | 695,139 | |||||||
| 196,364 | Trader Classified Media NV | 36,977 | ||||||||
| 177,512 | USG People NV | 5,408,624 | ||||||||
| 79,900 | Wavin NV | 1,388,350 | ||||||||
| 44,536,225 | ||||||||||
| New Zealand: 0.2% | ||||||||||
| 1,168,246 | Air New Zealand Ltd. | 1,919,964 | ||||||||
| 1,919,964 | ||||||||||
| Norway: 2.3% | ||||||||||
| 91,000 | ABG Sundal Collier ASA | 253,174 | ||||||||
| 1,242,400 | Acta Holding ASA | 4,984,258 | ||||||||
| 190,200 | Cermaq ASA | 2,928,990 | ||||||||
| 62,600 | @ | Electromagnetic Geoservices | 1,003,053 | |||||||
| 194,400 | @ | Ementor ASA | 1,626,969 | |||||||
| 31,150 | Fred Olsen Energy ASA | 1,587,818 | ||||||||
| 83,480 | Leroy Seafood Group ASA | 1,777,355 | ||||||||
| 21,100 | @ | ODIM ASA | 370,900 | |||||||
| 13,850 | @ | Petroleum Geo-Services ASA | 411,191 | |||||||
| 459,172 | Tandberg ASA | 11,750,289 | ||||||||
| 71,750 | Veidekke ASA | 758,134 | ||||||||
| 27,452,131 | ||||||||||
| Portugal: 0.4% | ||||||||||
| 68,830 | Jeronimo Martins | 512,557 | ||||||||
| 174,058 | Semapa-Sociedade de Investimento e Gestao | 2,838,164 | ||||||||
| 37,481 | @ | Sonae Industria — SGPS SA | 456,535 | |||||||
| 216,779 | Teixeira Duarte — Engenharia Construcoes SA | 782,538 | ||||||||
| 4,589,794 | ||||||||||
200
Table of Contents
| Shares | Value | |||||||||
| Russia: 0.0% | ||||||||||
| 2,700 | @ | Chelyabinsk Zink Plant GDR | $ | 37,800 | ||||||
| 2,400 | L | Mechel OAO ADR | 201,960 | |||||||
| 239,760 | ||||||||||
| Singapore: 2.8% | ||||||||||
| 1,614,000 | Allgreen Properties Ltd. | 1,780,037 | ||||||||
| 1,266,000 | Armstrong Industrial Corp. | 380,385 | ||||||||
| 238,000 | Ascott Group Ltd. | 271,936 | ||||||||
| 739,000 | Aztech Systems Ltd. | 193,335 | ||||||||
| 1,447,000 | Ho Bee Investment Ltd. | 1,854,413 | ||||||||
| 542,000 | Hong Leong Asia Ltd. | 1,438,203 | ||||||||
| 226,000 | Jaya Holdings Ltd. | 311,150 | ||||||||
| 4,008,000 | LC Development Ltd. | 1,254,331 | ||||||||
| 2,918,000 | Meiban Group Ltd. | 1,368,098 | ||||||||
| 40,000 | I | MFS Technology Ltd. | 15,826 | |||||||
| 656,000 | Neptune Orient Lines Ltd. | 2,349,998 | ||||||||
| 73,000 | Parkway Holdings Ltd. | 211,725 | ||||||||
| 352,000 | Rotary Engineering Ltd. | 357,874 | ||||||||
| 37,000 | Singapore Land Ltd. | 250,258 | ||||||||
| 3,254,000 | Singapore Petroleum Co., Ltd. | 18,582,424 | ||||||||
| 71,000 | Singapore Press Holdings Ltd. | 225,992 | ||||||||
| 260,000 | Tat Hong Holdings Ltd. | 543,984 | ||||||||
| 30,000 | Venture Corp., Ltd. | 291,044 | ||||||||
| 176,000 | Wheelock Properties S Ltd. | 298,037 | ||||||||
| 4,188,000 | @ | Yongnam Holdings Ltd. | 1,163,024 | |||||||
| 33,142,074 | ||||||||||
| South Korea: 7.4% | ||||||||||
| 8,526 | Amorepacific Corp. | 1,939,430 | ||||||||
| 66,280 | Asiana Airlines | 744,684 | ||||||||
| 23,040 | BNG Steel Co., Ltd. | 419,934 | ||||||||
| 4,810 | Daelim Industrial Co. | 1,056,997 | ||||||||
| 5,750 | Daewoong Pharmaceutical Co., Ltd. | 513,387 | ||||||||
| 220,591 | L | Daishin Securities Co., Ltd. | 6,921,907 | |||||||
| 14,280 | Daishin Securities Co., Ltd. | 448,091 | ||||||||
| 3,400 | DC Chemical Co., Ltd. | 1,321,040 | ||||||||
| 48,730 | Dongbu Insurance Co., Ltd. | 2,964,410 | ||||||||
| 143,450 | L,I | Dongyang Mechatronics Corp. | 1,735,564 | |||||||
| 20,970 | Doosan Infracore Co., Ltd. | 892,386 | ||||||||
| 99,680 | From30 Co., Ltd. | 1,165,273 | ||||||||
| 14,600 | GS Holdings Corp. | 1,048,052 | ||||||||
| 441,636 | @ | Halim Co., Ltd. | 1,008,231 | |||||||
| 127,874 | L | Hanjin Shipping | 7,477,449 | |||||||
| 17,450 | Hanshin Construction | 551,060 | ||||||||
| 366,350 | Hanwha Chemcial Corp. | 10,824,209 | ||||||||
| 23,199 | Honam Petrochemical Corp. | 3,541,370 | ||||||||
| 35,970 | L | Hyosung Corp. | 2,698,694 | |||||||
| 17,400 | Hyundai DSF Co., Ltd. | 298,693 | ||||||||
| 38,640 | Hyundai Marine & Fire Insurance Co., Ltd. | 1,119,782 | ||||||||
| 3,220 | Hyundai Mipo Dockyard Co., Ltd. | 1,430,658 | ||||||||
| 82,900 | Jinheung Mutual Savings Bank | 544,144 | ||||||||
| 8,833 | KCC Engineering & Construction | 710,525 | ||||||||
| 15,780 | Keangnam Enterprises Ltd. | 1,007,963 | ||||||||
| 63,950 | L | Kolon Engineering & Construction Co., Ltd. | 959,397 | |||||||
| 12,927 | Korea Zinc Co., Ltd. | 2,610,825 | ||||||||
| 26,960 | Korean Petrochemical Industrial Co. | 2,380,106 | ||||||||
| 160,300 | @ | KP Chemical Corp. | 1,470,137 | |||||||
| 21,856 | Kyeryong Construction Industrial Co., Ltd. | 1,027,138 | ||||||||
| 50,060 | L | LG Chem Ltd. | 6,255,642 | |||||||
| 56,940 | LIG Non-Life Insurance Co., Ltd. | 1,766,111 | ||||||||
| 43,900 | LS Cable Ltd. | 6,781,236 | ||||||||
| 14,580 | Meritz Fire & Marine Insurance Co., Ltd. | 213,150 | ||||||||
| 20,814 | L | Mirae Asset Securities Co., Ltd. | 3,973,111 | |||||||
| 575 | Nong Shim Co., Ltd. | 127,541 | ||||||||
| 44,384 | People & Telecommunication, Inc. | 627,007 | ||||||||
| 28,830 | SeAH Steel Corp. | 1,560,088 | ||||||||
| 27,226 | L | SFA Engineering Corp. | 2,088,202 | |||||||
| 54,980 | L | Solomon Mutual Savings Bank | 898,900 | |||||||
| 11,960 | STX Shipbuilding Co., Ltd. | 973,697 | ||||||||
| 16,830 | Sungjee Construction Co., Ltd. | 520,440 | ||||||||
| 36,144 | L | Taesan LCD Co., Ltd. | 415,643 | |||||||
| 101,920 | L | Tong Yang Investment Bank | 2,344,389 | |||||||
| 89,376,693 | ||||||||||
| Spain: 1.4% | ||||||||||
| 33,437 | @ | Campofrio Alimentacion SA | 587,092 | |||||||
| 162,462 | Corp. Mapfre SA | 766,284 | ||||||||
| 12,468 | Gestevision Telecinco SA | 360,346 | ||||||||
| 23,600 | Grifols SA | 626,111 | ||||||||
| 92,700 | Indra Sistemas SA | 2,696,825 | ||||||||
| 44,800 | @ | Laboratorios Almirall SA | 1,089,581 | |||||||
| 5,406 | Pescanova SA | 309,530 | ||||||||
| 49,300 | Promotora de Informaciones SA (PRISA) | 969,159 | ||||||||
| 52,000 | Red Electrica de Espana | 2,923,441 | ||||||||
| 220,400 | Tubos Reunidos SA | 1,773,312 | ||||||||
| 63,295 | Union Fenosa SA | 4,215,721 | ||||||||
| 8,305 | Viscofan SA | 214,504 | ||||||||
| 16,531,906 | ||||||||||
| Sweden: 2.7% | ||||||||||
| 16,350 | Axfood AB | 578,058 | ||||||||
| 14,500 | Cardo AB | 514,647 | ||||||||
| 36,000 | Castellum AB | 458,074 | ||||||||
| 409,642 | Fabege AB | 4,892,950 | ||||||||
| 15,300 | Getinge AB | 405,421 | ||||||||
| 262,800 | JM AB | 5,864,314 | ||||||||
| 137,100 | KappAhl Holding AB | 1,708,366 | ||||||||
| 284,700 | Kungsleden AB | 4,076,643 | ||||||||
| 115,500 | Lindex AB | 2,101,567 | ||||||||
| 231,900 | NCC AB | 5,793,242 | ||||||||
| 388,200 | Peab AB | 3,534,485 | ||||||||
| 128,400 | @ | Peab AB | 1,091,553 | |||||||
| 45,000 | Trelleborg AB | 1,150,818 | ||||||||
| 37,500 | Wihlborgs Fastigheter AB | 725,213 | ||||||||
| 32,895,351 | ||||||||||
| Switzerland: 2.6% | ||||||||||
| 25,705 | @ | Actelion Ltd. — Reg | 1,278,651 | |||||||
| 31,500 | Addax Petroleum Corp. | 1,379,511 | ||||||||
| 67,137 | Adecco SA | 4,047,792 | ||||||||
| 2,376 | AFG Arbonia-Forster Holding | 888,129 | ||||||||
| 25,790 | Baloise Holding AG | 2,746,531 | ||||||||
| 5,060 | Bellevue Group AG | 405,494 | ||||||||
| 2,911 | Bucher Industries AG | 693,163 | ||||||||
| 1,269 | Burckhardt Compression Holding AG | 386,557 | ||||||||
| 250 | Galenica AG | 121,192 | ||||||||
| 1,149 | Geberit AG — Reg | 155,419 | ||||||||
| 6,128 | @ | Georg Fischer AG | 4,610,190 | |||||||
| 5,025 | Helvetia Holding AG | 1,826,434 | ||||||||
| 7,600 | Holcim Ltd. | 868,832 | ||||||||
| 146,371 | Kudelski SA | 4,132,808 | ||||||||
| 14,949 | @ | Micronas Semiconductor Hold | 199,801 | |||||||
| 7,585 | Partners Group | 1,031,720 | ||||||||
| 12,650 | @ | Petroplus Holdings AG | 1,104,181 | |||||||
| 293 | @ | St Galler Kantonalbank | 128,851 | |||||||
| 9,200 | @ | Swiss Life Holding | 2,546,723 | |||||||
201
Table of Contents
| Shares | Value | |||||||||
| Switzerland: (continued) | ||||||||||
| 5,720 | Swissquote Group Holding — Reg | $ | 381,968 | |||||||
| 25,300 | @ | Temenos Group AG — Reg | 704,891 | |||||||
| 26,820 | Vontobel Holding AG | 1,383,781 | ||||||||
| 69 | Zehnder Group AG | 125,233 | ||||||||
| 31,147,852 | ||||||||||
| Taiwan: 1.3% | ||||||||||
| 164,956 | Altek Corp. | 296,614 | ||||||||
| 227,482 | Coretronic Corp. | 353,812 | ||||||||
| 720 | Everlight Electronics Co., Ltd. | 3,180 | ||||||||
| 345,360 | Gamania Digital Entertainment Co., Ltd. | 340,684 | ||||||||
| 1,590,000 | @ | Grand Pacific Petrochemical Corp. | 702,096 | |||||||
| 2,729,088 | @,I | HannStar Display Corp. | 1,272,114 | |||||||
| 2,889,918 | Macronix International | 1,895,670 | ||||||||
| 2,930,444 | Micro-Star International Co., Ltd. | 3,138,753 | ||||||||
| 290,550 | Powertech Technology, Inc. | 1,187,130 | ||||||||
| 365,000 | Sanyang Industrial Co., Ltd. | 292,929 | ||||||||
| 168,000 | Taiwan Mask Corp. | 102,793 | ||||||||
| 564,840 | Taiwan Polypropylene Co., Ltd. | 488,607 | ||||||||
| 139,150 | Taiwan Surface Mounting Technology Co., Ltd. | 325,520 | ||||||||
| 395,000 | ThaiLin Semiconductor Corp. | 270,012 | ||||||||
| 408,000 | TSRC Corp. | 635,534 | ||||||||
| 447,000 | Tung Ho Steel Enterprise Corp. | 667,591 | ||||||||
| 740,000 | U-Ming Marine Transport Corp. | 2,432,407 | ||||||||
| 224 | Unimicron Technology Corp. | 457 | ||||||||
| 1,289,937 | Universal Scientific Industrial Co., Ltd. | 985,454 | ||||||||
| 181,485 | Wistron Corp. | 365,531 | ||||||||
| 15,756,888 | ||||||||||
| Thailand: 0.2% | ||||||||||
| 4,158,900 | @ | Shin Satellite Public Co., Ltd. | 1,271,145 | |||||||
| 164,300 | Thai Airways International | 191,643 | ||||||||
| 787,100 | Thoresen Thai Agencies Pcl | 1,415,743 | ||||||||
| 2,878,531 | ||||||||||
| Turkey: 0.9% | ||||||||||
| 51,189 | Akcansa Cimento A/S | 376,357 | ||||||||
| 372,698 | Aksa Akrilik Kimya Sanayii | 1,025,071 | ||||||||
| 188,911 | Anadolu Sigorta | 353,342 | ||||||||
| 1 | Bolu Cimento Sanayii | 2 | ||||||||
| 276,305 | Bossa Ticaret Sanayi Isletme | 388,406 | ||||||||
| 609,854 | @ | Dogan Sriketler Grubu Holdings | 1,359,017 | |||||||
| 87,532 | Ford Otomotiv Sanayi A/S | 1,033,416 | ||||||||
| 28,916 | @ | Goodyear Lastikleri TAS | 403,871 | |||||||
| 746,616 | @ | Ihlas Holding | 729,874 | |||||||
| 83,901 | Mardin Cimento Sanayii | 515,962 | ||||||||
| 223,752 | @ | Petkim Petrokimya Holding | 1,862,892 | |||||||
| 1 | @ | Petrol Ofisi | 4 | |||||||
| 104,414 | Trakya Cam Sanyii A/S | 272,716 | ||||||||
| 244,931 | @ | Turk Hava Yollari | 1,763,086 | |||||||
| 11,582 | Turk Traktor ve Ziraat Makineleri A/S | 165,557 | ||||||||
| 10,249,573 | ||||||||||
| United Kingdom: 15.4% | ||||||||||
| 16,550 | Aga Foodservice Group PLC | 143,198 | ||||||||
| 474,060 | Aggreko PLC | 6,202,807 | ||||||||
| 84,039 | Antofagasta PLC | 1,470,230 | ||||||||
| 416,847 | Ashtead Group PLC | 948,987 | ||||||||
| 33,332 | Atkins WS PLC | 842,648 | ||||||||
| 221,585 | Babcock International Group | 2,709,570 | ||||||||
| 1,191,743 | Beazley Group PLC | 4,295,632 | ||||||||
| 43,065 | Bluebay Asset Management | 413,648 | ||||||||
| 84,600 | Bodycote International | 518,096 | ||||||||
| 209,100 | Bradford & Bingle PLC | 1,349,176 | ||||||||
| 635,061 | Brit Insurance Holdings PLC | 4,299,146 | ||||||||
| 232,900 | British Energy Group PLC | 2,586,933 | ||||||||
| 86,491 | Britvic PLC | 647,289 | ||||||||
| 83,920 | Burren Energy PLC | 2,118,026 | ||||||||
| 247,800 | Cable & Wireless PLC | 1,006,948 | ||||||||
| 405,617 | @ | Charter PLC | 9,178,003 | |||||||
| 526,952 | Chaucer Holdings PLC | 1,284,648 | ||||||||
| 145,900 | Cookson Group PLC | 2,537,494 | ||||||||
| 21,962 | Cranswick PLC | 381,107 | ||||||||
| 396,911 | @ | CSR PLC | 5,353,156 | |||||||
| 169,449 | Dairy Crest Group PLC | 2,126,247 | ||||||||
| 553,118 | @ | Dana Petroleum PLC | 14,871,934 | |||||||
| 79,400 | Davis Service Group PLC | 902,102 | ||||||||
| 289,900 | DS Smith PLC | 1,397,242 | ||||||||
| 275,917 | Enodis PLC | 1,205,013 | ||||||||
| 9,800 | Expro International Group | 250,108 | ||||||||
| 599,481 | Fiberweb PLC | 627,261 | ||||||||
| 65,700 | Firstgroup PLC | 1,090,865 | ||||||||
| 480,000 | Friends Provident PLC | 1,842,635 | ||||||||
| 272,538 | Galliford Try PLC | 893,157 | ||||||||
| 512,222 | Game Group PLC | 2,134,781 | ||||||||
| 224,900 | GKN PLC | 1,721,464 | ||||||||
| 15,900 | Go-Ahead Group PLC | 894,626 | ||||||||
| 11,600 | Greene King PLC | 219,282 | ||||||||
| 3,223 | Greggs PLC | 335,917 | ||||||||
| 258,375 | Halfords Group PLC | 1,912,998 | ||||||||
| 112,560 | Henderson Group PLC | 440,253 | ||||||||
| 619,500 | Hiscox Ltd. | 3,708,944 | ||||||||
| 5,026 | Homeserve PLC | 188,838 | ||||||||
| 143,600 | Hunting PLC | 2,207,162 | ||||||||
| 51,706 | IG Group Holdings PLC | 448,588 | ||||||||
| 109,500 | IMI PLC | 1,279,583 | ||||||||
| 70,679 | Inchcape PLC | 694,412 | ||||||||
| 138,500 | Informa PLC | 1,545,653 | ||||||||
| 8,500 | Intermediate Capital Group PLC | 294,023 | ||||||||
| 153,400 | Interserve PLC | 1,685,567 | ||||||||
| 152,585 | ITE Group PLC | 557,315 | ||||||||
| 211,227 | JKX Oil & Gas PLC | 1,721,280 | ||||||||
| 382,252 | John Wood Group PLC | 3,331,393 | ||||||||
| 108,026 | Johnston Press PLC | 676,562 | ||||||||
| 183,607 | Keller Group PLC | 4,348,105 | ||||||||
| 162,500 | Kesa Electricals PLC | 1,078,899 | ||||||||
| 42,557 | Kier Group PLC | 1,903,363 | ||||||||
| 808,977 | Kingston Communications PLC | 1,120,835 | ||||||||
| 55,610 | Ladbrokes PLC | 477,822 | ||||||||
| 63,698 | Lavendon Group PLC | 911,460 | ||||||||
| 528,200 | LogicaCMG PLC | 1,793,150 | ||||||||
| 24,799 | LSL Property Services PLC | 84,558 | ||||||||
| 111,727 | Luminar Group Holdings PLC | 1,481,644 | ||||||||
| 122,900 | Luminar PLC | 153,839 | ||||||||
| 148,148 | Mcbride PLC | 535,228 | ||||||||
| 1,537,531 | Michael Page International PLC | 14,053,490 | ||||||||
| 161,799 | Morgan Crucible Co. | 1,072,232 | ||||||||
| 89,100 | National Express Group PLC | 2,450,573 | ||||||||
| 56,010 | @ | NETeller PLC | 83,612 | |||||||
| 44,500 | Next PLC | 2,050,374 | ||||||||
| 950,940 | Northern Foods PLC | 2,105,773 | ||||||||
| 219,388 | @ | Northern Petroleum PLC | 828,858 | |||||||
| 1,178,084 | Northgate Information Solutions PLC | 1,933,735 | ||||||||
| 28,216 | Northgate PLC | 568,056 | ||||||||
| 98,100 | Northumbrian Water Group PLC | 672,063 | ||||||||
| 122,823 | Paragon Group of Cos., LLC | 608,474 | ||||||||
| 1,307,068 | Pendragon PLC | 1,834,741 | ||||||||
| 477,444 | Petrofac Ltd. | 5,133,943 | ||||||||
| 636,552 | RAB Capital PLC | 1,452,139 | ||||||||
| 77,250 | Rightmove PLC | 957,462 | ||||||||
202
Table of Contents
| Shares | Value | |||||||||
| United Kingdom (continued) | ||||||||||
| 183,935 | Robert Walters PLC | $ | 1,011,556 | |||||||
| 41,538 | Rotork PLC | 949,336 | ||||||||
| 415,515 | Savills PLC | 3,177,439 | ||||||||
| 77,600 | Severfield-Rowen PLC | 987,371 | ||||||||
| 106,200 | Severn Trent PLC | 3,208,935 | ||||||||
| 88,159 | Sibir Energy PLC | 998,352 | ||||||||
| 295,181 | Smiths News PLC | 762,427 | ||||||||
| 149,800 | Southern Cross Healthcare Ltd. | 1,883,567 | ||||||||
| 85,290 | Spectris PLC | 1,542,433 | ||||||||
| 159,420 | Spice PLC | 1,962,684 | ||||||||
| 369,200 | @ | Spirent Communications PLC | 538,104 | |||||||
| 1,520,091 | @ | Sportingbet PLC | 1,892,498 | |||||||
| 36,000 | St. Ives Group PLC | 213,793 | ||||||||
| 74,800 | St. James’s Place PLC | 604,632 | ||||||||
| 85,316 | Sthree PLC | 441,654 | ||||||||
| 16,900 | Stolt-Nielsen SA | 495,929 | ||||||||
| 712,893 | Taylor Nelson Sofres PLC | 3,203,668 | ||||||||
| 83,338 | @ | THUS Group PLC | 256,194 | |||||||
| 186,263 | Trinity Mirror PLC | 1,562,662 | ||||||||
| 256,500 | @ | TUI Travel PLC | 1,437,356 | |||||||
| 34,963 | Ultra Electronics Holdings | 912,202 | ||||||||
| 28,800 | Vedanta Resources PLC | 1,322,798 | ||||||||
| 69,927 | Vislink PLC | 99,122 | ||||||||
| 95,200 | Vitec Group PLC | 1,307,458 | ||||||||
| 164,386 | VT Group PLC | 2,062,067 | ||||||||
| 59,631 | Wetherspoon (J.D.) PLC | 674,916 | ||||||||
| 182,400 | WH Smith PLC | 1,502,494 | ||||||||
| 1,435,130 | Woolworths Group PLC | 636,452 | ||||||||
| 184,834,474 | ||||||||||
| Total Common Stock (Cost $952,215,286) | 1,164,649,430 | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 0.2% | ||||||||||
| Belgium: 0.1% | ||||||||||
| 2,321 | Befimmo S.C.A. | 253,043 | ||||||||
| 2,338 | Cofinimmo | 439,641 | ||||||||
| 692,684 | ||||||||||
| Guernsey: 0.0% | ||||||||||
| 17,741 | Eurocastle Investment Ltd. | 564,920 | ||||||||
| 564,920 | ||||||||||
| Netherlands: 0.1% | ||||||||||
| 7,203 | Nieuwe Steen Investments Funds NV | 203,010 | ||||||||
| 25,786 | Vastned Offices | 915,096 | ||||||||
| 1,118,106 | ||||||||||
| Singapore: 0.0% | ||||||||||
| 11,000 | @ | Parkway Life Real Estate Investment Trust | 9,428 | |||||||
| 9,428 | ||||||||||
| Total Real Estate Investment Trusts (Cost $2,889,701) | 2,385,138 | |||||||||
| MUTUAL FUNDS: 0.1% | ||||||||||
| United Kingdom: 0.1% | ||||||||||
| 89,977 | SVG Capital PLC | 1,625,397 | ||||||||
| Total Mutual Funds (Cost $1,625,706) | 1,625,397 | |||||||||
| PREFERRED STOCK: 0.5% | ||||||||||
| Germany: 0.2% | ||||||||||
| 16,103 | Fresenius AG | 1,278,096 | ||||||||
| 57,350 | ProSieben SAT.1 Media AG | 1,696,091 | ||||||||
| 2,974,187 | ||||||||||
| Italy: 0.3% | ||||||||||
| 80,170 | @ | Instituto Finanziario Industriale S.p.A. | 3,351,989 | |||||||
| 3,351,989 | ||||||||||
| Total Preferred Stock (Cost $5,332,859) | 6,326,176 | |||||||||
| RIGHTS: 0.0% | ||||||||||
| Japan: 0.0% | ||||||||||
| 74,100 | Shinko Securities Co., Ltd. | 5,781 | ||||||||
| 5,781 | ||||||||||
| South Korea: 0.0% | ||||||||||
| 22,952 | Dongyang Mechatronics Corp. | 96,069 | ||||||||
| 1,283 | Keangnam Enterprises Ltd. | 36,181 | ||||||||
| 132,250 | ||||||||||
| Total Rights (Cost $—) | 138,031 | |||||||||
| WARRANTS: 0.0% | ||||||||||
| Hong Kong: 0.0% | ||||||||||
| 20,000 | Industrial and Commercial Bank of China Ltd. | 3,742 | ||||||||
| Total Warrants (Cost $—) | 3,742 | |||||||||
| Total Long-Term Investments (Cost $963,978,916 ) | 1,175,127,914 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 3.5% | ||||||||||
| U.S. Government Agency Obligations: 0.6% | ||||||||||
| $ | 6,795,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 6,794,207 | |||||
| Total U.S. Government Agency Obligations (Cost $6,794,207) | 6,794,207 | |||||||||
203
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Securities Lending CollateralCC: 2.9% | ||||||||||
| $ | 34,544,733 | Bank of New York Mellon Corp. Institutional Cash Reserves | $ | 34,544,733 | ||||||
| Total Securities Lending Collateral (Cost $34,544,733) | 34,544,733 | |||||||||
| Total Short-Term Investments (Cost $41,338,940) | 41,338,940 | |||||||||
Total Investments in Securities (Cost $1,005,317,856)* | 101.3 | % | $ | 1,216,466,854 | ||||||||
Other Assets and Liabilities-Net | (1.3 | ) | (15,159,435 | ) | ||||||||
Net Assets | 100.0 | % | $ | 1,201,307,419 | ||||||||
| @ | Non-income producing security | |
| ADR | American Depositary Receipt | |
| GDR | Global Depositary Receipt | |
| cc | Securities purchased with cash collateral for securities loaned. | |
| I | Illiquid security | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $1,006,625,059. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 254,846,411 | ||
| Gross Unrealized Depreciation | (45,004,616 | ) | ||
| Net Unrealized Appreciation | $ | 209,841,795 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Advertising | 0.4 | % | ||
| Aerospace/ Defense | 1.3 | |||
| Agriculture | 0.2 | |||
| Airlines | 1.2 | |||
| Apparel | 0.2 | |||
| Auto Manufacturers | 0.5 | |||
| Auto Parts & Equipment | 2.3 | |||
| Banks | 1.6 | |||
| Beverages | 0.3 | |||
| Building Materials | 1.1 | |||
| Chemicals | 4.1 | |||
| Closed-End Funds | 0.1 | |||
| Coal | 0.5 | |||
| Commercial Services | 4.6 | |||
| Computers | 1.3 | % | ||
| Cosmetics/ Personal Care | 0.2 | |||
| Distribution/ Wholesale | 3.4 | |||
| Diversified Financial Services | 4.0 | |||
| Electric | 1.1 | |||
| Electrical Components & Equipment | 2.7 | |||
| Electronics | 2.2 | |||
| Engineering & Construction | 4.2 | |||
| Entertainment | 0.3 | |||
| Environmental Control | 0.1 | |||
| Food | 2.4 | |||
| Forest Products & Paper | 0.3 | |||
| Gas | 0.0 | |||
| Hand/ Machine Tools | 1.8 | |||
| Healthcare — Products | 0.1 | |||
| Healthcare — Services | 0.8 | |||
| Holding Companies — Diversified | 2.0 | |||
| Home Builders | 0.4 | |||
| Home Furnishings | 1.5 | |||
| Household Products/ Wares | 0.4 | |||
| Housewares | 0.2 | |||
| Insurance | 4.5 | |||
| Internet | 1.2 | |||
| Investment Companies | 0.2 | |||
| Iron/ Steel | 3.6 | |||
| Leisure Time | 0.8 | |||
| Lodging | 0.1 | |||
| Machinery — Construction & Mining | 0.2 | |||
| Machinery — Diversified | 1.8 | |||
| Media | 1.4 | |||
| Metal Fabricate/ Hardware | 1.4 | |||
| Mining | 5.2 | |||
| Miscellaneous Manufacturing | 2.7 | |||
| Office/ Business Equipment | 0.5 | |||
| Oil & Gas | 5.2 | |||
| Oil & Gas Services | 1.3 | |||
| Pharmaceuticals | 1.7 | |||
| Pipelines | 0.2 | |||
| Real Estate | 4.9 | |||
| REITS — Diversified | 0.2 | |||
| REITS — Health Care | 0.0 | |||
| REITS — Office Property | 0.0 | |||
| Retail | 3.9 | |||
| Semiconductors | 1.3 | |||
| Shipbuilding | 0.4 | |||
| Software | 0.5 | |||
| Telecommunications | 2.5 | |||
| Textiles | 0.0 | |||
| Transportation | 3.9 | |||
| Venture Capital | 0.1 | |||
| Water | 0.3 | |||
| Short-Term Investments | 3.5 | |||
| Other Assets and Liabilities — Net | (1.3 | ) | ||
Net Assets | 100.0 | % | ||
204
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 97.9% | ||||||||||
| Bermuda: 1.3% | ||||||||||
| 1,918,134 | Tyco Electronics Ltd. | $ | 68,419,840 | |||||||
| 68,419,840 | ||||||||||
| Brazil: 4.6% | ||||||||||
| 7,745,531 | L | Centrais Eletricas Brasileiras SA ADR | 120,209,867 | |||||||
| 3,741,386 | L | Contax Participacoes SA ADR | 5,892,683 | |||||||
| 3,741,386 | L | Tele Norte Leste Participacoes SA ADR | 81,562,215 | |||||||
| 1,208,600 | L | Telecomunicacoes Brasileiras SA ADR | 30,251,258 | |||||||
| 111,928 | L | Tim Participacoes SA ADR | 5,193,459 | |||||||
| 776,726 | @,L | Vivo Participacoes SA ADR | 4,574,916 | |||||||
| 247,684,398 | ||||||||||
| Canada: 1.1% | ||||||||||
| 3,659,170 | @,L | Nortel Networks Corp. | 59,022,412 | |||||||
| 59,022,412 | ||||||||||
| France: 11.9% | ||||||||||
| 10,920,320 | Alcatel-Lucent | 106,156,156 | ||||||||
| 1,816,990 | Carrefour SA | 131,296,742 | ||||||||
| 1,074,200 | Credit Agricole SA | 42,558,259 | ||||||||
| 4,261,782 | France Telecom SA | 157,600,803 | ||||||||
| 1,251,900 | Natixis | 27,837,779 | ||||||||
| 2,012,750 | Sanofi-Aventis | 177,049,420 | ||||||||
| 642,499,159 | ||||||||||
| Germany: 5.2% | ||||||||||
| 10,525,519 | Deutsche Telekom AG | 216,245,099 | ||||||||
| 411,200 | Hypo Real Estate Holding AG | 24,438,135 | ||||||||
| 2,158,500 | @ | Infineon Technologies AG | 31,698,486 | |||||||
| 559,890 | @,L | Qimonda AG ADR | 5,408,537 | |||||||
| 277,790,257 | ||||||||||
| Hong Kong: 0.1% | ||||||||||
| 165,195 | Jardine Matheson Holdings Ltd. | 5,060,762 | ||||||||
| 5,060,762 | ||||||||||
| Italy: 4.0% | ||||||||||
| 10,705,782 | Intesa Sanpaolo S.p.A. | 84,929,007 | ||||||||
| 10,329,085 | Telecom Italia S.p.A. | 32,366,626 | ||||||||
| 37,893,100 | Telecom Italia S.p.A. RNC | 98,138,655 | ||||||||
| 215,434,288 | ||||||||||
| Japan: 25.5% | ||||||||||
| 2,628,300 | L | Aiful Corp. | 62,023,015 | |||||||
| 740,000 | Akita Bank Ltd. | 3,400,584 | ||||||||
| 1,153,800 | Astellas Pharma, Inc. | 51,218,808 | ||||||||
| 3,409,000 | Dai Nippon Printing Co., Ltd. | 49,487,045 | ||||||||
| 2,427,336 | Daiichi Sankyo Co., Ltd. | 69,028,635 | ||||||||
| 960,000 | Fuji Photo Film Co., Ltd. | 45,921,418 | ||||||||
| 16,660,700 | Hitachi Ltd. | 111,573,257 | ||||||||
| 2,272,500 | Millea Holdings, Inc. | 89,435,936 | ||||||||
| 14,042,000 | Mitsubishi UFJ Financial Group, Inc. | 140,506,265 | ||||||||
| 8,660,000 | Mitsui Sumitomo Insurance Co., Ltd. | 99,320,377 | ||||||||
| 4,231,000 | Mitsui Trust Holdings, Inc. | 33,854,398 | ||||||||
| 13,954 | Mizuho Financial Group, Inc. | 78,427,695 | ||||||||
| 22,174 | Nippon Telegraph & Telephone Corp. | 101,482,462 | ||||||||
| 1,174,000 | Ono Pharmaceutical Co., Ltd. | 60,619,565 | ||||||||
| 821,000 | Rohm Co., Ltd. | 71,928,207 | ||||||||
| 3,739,000 | Seven & I Holdings Co., Ltd. | 96,547,055 | ||||||||
| 921,800 | Sony Corp. | 45,524,415 | ||||||||
| 8,505 | Sumitomo Mitsui Financial Group, Inc. | 69,667,215 | ||||||||
| 285,000 | Taisho Pharmaceutical Co., Ltd. | 5,478,749 | ||||||||
| 1,998,000 | Takefuji Corp. | 50,917,696 | ||||||||
| 509,000 | TDK Corp. | 41,773,419 | ||||||||
| 1,378,136,216 | ||||||||||
| Mexico: 2.0% | ||||||||||
| 2,942,320 | L | Telefonos de Mexico SA de CV ADR | 107,600,642 | |||||||
| 107,600,642 | ||||||||||
| Netherlands: 9.1% | ||||||||||
| 3,999,409 | Aegon NV | 82,908,116 | ||||||||
| 1,134,000 | Akzo Nobel NV | 91,398,803 | ||||||||
| 6,934,612 | @ | Koninklijke Ahold NV | 104,484,196 | |||||||
| 893,779 | SNS Reaal | 21,487,479 | ||||||||
| 3,566,100 | Unilever NV | 116,068,577 | ||||||||
| 2,365,432 | Wolters Kluwer NV | 74,293,780 | ||||||||
| 490,640,951 | ||||||||||
| New Zealand: 0.7% | ||||||||||
| 11,854,172 | Telecom Corp. of New Zealand Ltd. | 39,819,982 | ||||||||
| 39,819,982 | ||||||||||
| Portugal: 2.0% | ||||||||||
| 6,882,776 | Portugal Telecom SGPS SA | 92,389,017 | ||||||||
| 1,211,829 | PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA | 16,503,801 | ||||||||
| 108,892,818 | ||||||||||
| South Korea: 6.1% | ||||||||||
| 1,463,610 | Korea Electric Power Corp. | 64,701,319 | ||||||||
| 2,745,880 | L | Korea Electric Power Corp. ADR | 61,095,830 | |||||||
| 183,200 | KT Corp. | 8,702,264 | ||||||||
| 2,192,310 | KT Corp. ADR | 51,563,131 | ||||||||
| 695,464 | LG Electronics, Inc. | 73,127,957 | ||||||||
| 304,885 | SK Telecom Co., Ltd. | 71,530,830 | ||||||||
| 330,721,331 | ||||||||||
| Spain: 2.3% | ||||||||||
| 3,679,102 | Telefonica SA | 121,819,243 | ||||||||
| 121,819,243 | ||||||||||
| Sweden: 1.0% | ||||||||||
| 17,233,700 | Telefonaktiebolaget LM Ericsson | 51,563,326 | ||||||||
| 51,563,326 | ||||||||||
| Switzerland: 3.5% | ||||||||||
| 230,984 | Nestle SA | 106,687,333 | ||||||||
| 2,954,300 | STMicroelectronics NV | 50,615,429 | ||||||||
| 91,700 | Swisscom AG | 33,940,948 | ||||||||
| 191,243,710 | ||||||||||
| Taiwan: 1.1% | ||||||||||
| 91,257,655 | United Microelectronics Corp. | 59,852,629 | ||||||||
| 59,852,629 | ||||||||||
| United Kingdom: 15.9% | ||||||||||
| 3,256,180 | AstraZeneca PLC | 160,351,093 | ||||||||
| 2,964,800 | British Sky Broadcasting PLC | 41,988,498 | ||||||||
| 6,359,851 | GlaxoSmithKline PLC | 163,359,226 | ||||||||
205
Table of Contents
| Shares | Value | |||||||||
| United Kingdom: (continued) | ||||||||||
| 4,659,712 | HSBC Holdings PLC | $ | 92,386,665 | |||||||
| 42,926,226 | ITV PLC | 88,736,247 | ||||||||
| 4,145,800 | Kingfisher PLC | 17,062,873 | ||||||||
| 7,402,451 | Marks & Spencer Group PLC | 100,635,516 | ||||||||
| 485,646 | Royal Bank of Scotland Group PLC | 5,244,986 | ||||||||
| 522,565 | Unilever PLC | 17,719,902 | ||||||||
| 27,699,131 | WM Morrison Supermarkets PLC | 170,984,323 | ||||||||
| 858,469,329 | ||||||||||
| United States: 0.5% | ||||||||||
| 684,922 | Covidien Ltd. | 28,492,755 | ||||||||
| 28,492,755 | ||||||||||
| Total Common Stock (Cost $4,065,392,162) | 5,283,164,048 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 5.3% | ||||||||||
U.S. Government Agency Obligations: 1.8% | ||||||||||
| $ | 100,239,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 100,227,305 | |||||
| Total U.S. Government Agency Obligations (Cost $100,227,305) | 100,227,305 | |||||||||
Securities Lending CollateralCC: 3.5% | ||||||||||
| 186,972,678 | Bank of New York Mellon Corp. Institutional Cash Reserves | 186,972,678 | ||||||||
| Total Securities Lending Collateral (Cost $186,972,678) | 186,972,678 | |||||||||
| Total Short-Term Investments (Cost $287,199,983) | 287,199,983 | |||||||||
Total Investments in Securities (Cost $4,352,592,145)* | 103.2 | % | $ | 5,570,364,031 | ||||||||
Other Assets and Liabilities-Net | (3.2 | ) | (171,586,557 | ) | ||||||||
Net Assets | 100.0 | % | $ | 5,398,777,474 | ||||||||
| @ | Non-income producing security | |
| ADR | American Depositary Receipt | |
cc | Securities purchased with cash collateral for securities loaned. | |
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is the same as for financial statement purposes. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 1,370,876,052 | ||
| Gross Unrealized Depreciation | (153,104,166 | ) | ||
| Net Unrealized Appreciation | $ | 1,217,771,886 | ||
| Percentage | ||||
| of | ||||
| Industry | Net Assets | |||
| Banks | 11.6 | % | ||
| Chemicals | 1.7 | |||
| Commercial Services | 1.0 | |||
| Computers | 0.9 | |||
| Diversified Financial Services | 2.1 | |||
| Electric | 4.6 | |||
| Electrical Components & Equipment | 3.4 | |||
| Electronics | 1.3 | |||
| Food | 12.0 | |||
| Healthcare — Products | 0.5 | |||
| Holding Companies — Diversified | 0.1 | |||
| Home Furnishings | 0.8 | |||
| Insurance | 5.0 | |||
| Media | 4.1 | |||
| Miscellaneous Manufacturing | 0.8 | |||
| Pharmaceuticals | 12.7 | |||
| Retail | 4.0 | |||
| Semiconductors | 4.0 | |||
| Telecommunications: Cellular Telecom | 1.5 | |||
| Telecommunications: Telecom Services | 0.7 | |||
| Telecommunications: Telecommunication Equipment | 3.1 | |||
| Telecommunications: Telephone Integrated | 21.0 | |||
| Telecommunications: Wireless Equipment | 1.0 | |||
| Short-Term Investments | 5.3 | |||
| Other Assets and Liabilities — Net | (3.2 | ) | ||
Net Assets | 100.0 | % | ||
206
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 94.3% | ||||||||||
| Australia: 4.3% | ||||||||||
| 204,256 | Alumina Ltd. | $ | 1,283,621 | |||||||
| 723,600 | Dyno Nobel Ltd. | 1,666,332 | ||||||||
| 23,050 | Newcrest Mining Ltd. | 702,644 | ||||||||
| 3,652,597 | ||||||||||
| Belgium: 1.9% | ||||||||||
| 34,550 | Belgacom SA | 1,655,668 | ||||||||
| 1,655,668 | ||||||||||
| Brazil: 2.3% | ||||||||||
| 61,822 | Centrais Eletricas Brasileiras SA | 964,490 | ||||||||
| 65,250 | Centrais Eletricas Brasileiras SA ADR | 990,169 | ||||||||
| 1,954,659 | ||||||||||
| Canada: 10.2% | ||||||||||
| 76,154 | Barrick Gold Corp. | 3,360,676 | ||||||||
| 60,900 | @ | Ivanhoe Mines Ltd. | 836,766 | |||||||
| 67,050 | @ | Novagold Resources, Inc. | 1,260,540 | |||||||
| 58,300 | @ | Opti Canada, Inc. | 1,175,689 | |||||||
| 14,650 | Petro-Canada | 844,280 | ||||||||
| 11,580 | Suncor Energy, Inc. | 1,264,883 | ||||||||
| 8,742,834 | ||||||||||
| Finland: 2.3% | ||||||||||
| 107,600 | Stora Enso OYJ (Euro Denominated Security) | 1,984,809 | ||||||||
| 1,984,809 | ||||||||||
| France: 9.1% | ||||||||||
| 263,550 | Alcatel-Lucent | 2,561,963 | ||||||||
| 85,200 | @ | Gemalto NV | 2,509,087 | |||||||
| 15,350 | Sanofi-Aventis | 1,350,246 | ||||||||
| 22,230 | Thales SA | 1,389,614 | ||||||||
| 7,810,910 | ||||||||||
| Germany: 2.2% | ||||||||||
| 91,680 | @ | Premiere AG | 1,870,542 | |||||||
| 1,870,542 | ||||||||||
| Italy: 3.6% | ||||||||||
| 1,192,340 | Telecom Italia S.p.A. RNC | 3,088,018 | ||||||||
| 3,088,018 | ||||||||||
| Japan: 28.2% | ||||||||||
| 19,150 | Acom Co., Ltd. | 458,592 | ||||||||
| 57,900 | Coca-Cola West Holdings Co., Ltd. | 1,340,416 | ||||||||
| 187,000 | Dai Nippon Printing Co., Ltd. | 2,714,602 | ||||||||
| 58,890 | Daiichi Sankyo Co., Ltd. | 1,674,715 | ||||||||
| 51,700 | Fuji Photo Film Co., Ltd. | 2,473,060 | ||||||||
| 50,800 | JS Group Corp. | 822,938 | ||||||||
| 140,000 | Kirin Brewery Co., Ltd. | 1,956,392 | ||||||||
| 181,000 | Nippon Oil Corp. | 1,603,060 | ||||||||
| 147,430 | Nippon Telegraph & Telephone Corp. ADR | 3,383,519 | ||||||||
| 96,900 | Sega Sammy Holdings, Inc. | 1,337,921 | ||||||||
| 106,000 | Sekisui House Ltd. | 1,356,103 | ||||||||
| 35,400 | Seven & I Holdings Co., Ltd. | 914,086 | ||||||||
| 52,600 | Shiseido Co., Ltd. | 1,266,315 | ||||||||
| 48,520 | Takefuji Corp. | 1,236,500 | ||||||||
| 87,000 | Toppan Printing Co., Ltd. | 848,799 | ||||||||
| 68,000 | Wacoal Holdings Corp. | 828,934 | ||||||||
| 24,215,952 | ||||||||||
| Netherlands: 2.9% | ||||||||||
| 28,642 | Royal Dutch Shell PLC ADR | 2,499,015 | ||||||||
| 2,499,015 | ||||||||||
| Papua New Guinea: 0.9% | ||||||||||
| 183,200 | @ | Lihir Gold Ltd. | 727,328 | |||||||
| 727,328 | ||||||||||
| South Africa: 6.9% | ||||||||||
| 63,420 | Anglogold Ashanti Ltd. ADR | 2,945,859 | ||||||||
| 92,000 | Gold Fields Ltd. | 1,661,053 | ||||||||
| 35,108 | Impala Platinum Holdings Ltd. | 1,326,176 | ||||||||
| 5,933,088 | ||||||||||
| South Korea: 4.7% | ||||||||||
| 60,830 | Korea Electric Power Corp. ADR | 1,353,468 | ||||||||
| 114,850 | KT Corp. ADR | 2,701,272 | ||||||||
| 4,054,740 | ||||||||||
| Taiwan: 3.6% | ||||||||||
| 161,527 | Chunghwa Telecom Co., Ltd. ADR | 3,101,318 | ||||||||
| 3,101,318 | ||||||||||
| United Kingdom: 6.5% | ||||||||||
| 205,050 | BP PLC | 2,667,706 | ||||||||
| 20 | Lonmin PLC | 1,437 | ||||||||
| 13,780 | Rio Tin to PLC | 1,292,221 | ||||||||
| 397,862 | Vodafone Group PLC | 1,567,794 | ||||||||
| 5,529,158 | ||||||||||
| United States: 4.7% | ||||||||||
| 64,300 | @ | Apex Silver Mines Ltd. | 1,318,150 | |||||||
| 52,800 | Newmont Mining Corp. | 2,685,408 | ||||||||
| 4,003,558 | ||||||||||
| Total Common Stock (Cost $72,335,153) | 80,824,194 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 11.1% | ||||||||||
| U.S. Government Agency Obligations: 11.1% | ||||||||||
| $ | 9,546,000 | Z | Federal Home Loan Bank, 4.200%, due 11/01/07 | $ | 9,544,886 | |||||
| Total Short-Term Investments (Cost $9,544,886) | 9,544,886 | |||||||||
Total Investments in Securities (Cost $81,880,039)* | 105.4 | % | $ | 90,369,080 | ||||||||
Other Assets and Liabilities-Net | (5.4 | ) | (4,622,578 | ) | ||||||||
Net Assets | 100.0 | % | $ | 85,746,502 | ||||||||
| @ | Non-income producing security | |
| ADR | American Depositary Receipt | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| * | Cost for federal income tax purposes is $82,456,288. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 9,946,420 | ||
| Gross Unrealized Depreciation | (2,033,628 | ) | ||
| Net Unrealized Appreciation | $ | 7,912,792 | ||
207
Table of Contents
| Percentage of | ||||
| Industry | Net Assets | |||
| Aerospace/ Defense | 1.6 | % | ||
| Apparel | 1.0 | |||
| Beverages | 3.8 | |||
| Building Materials | 1.0 | |||
| Commercial Services | 4.1 | |||
| Computers | 2.9 | |||
| Cosmetics/ Personal Care | 1.5 | |||
| Diversified Financial Services | 2.0 | |||
| Electric | 3.9 | |||
| Forest Products & Paper | 2.3 | |||
| Home Builders | 1.6 | |||
| Leisure Time | 1.6 | |||
| Media | 2.2 | |||
| Mining | 22.6 | |||
| Miscellaneous Manufacturing | 4.8 | |||
| Oil & Gas | 11.7 | |||
| Pharmaceuticals | 3.5 | |||
| Retail | 1.1 | |||
| Telecommunications | 21.1 | |||
| Short-Term Investments | 11.1 | |||
| Other Assets and Liabilities — Net | (5.4 | ) | ||
Net Assets | 100.0 | % | ||
208
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 96.7% | ||||||||||
| Australia: 1.0% | ||||||||||
| 23,000 | Telstra Corp., Ltd. | $ | 100,665 | |||||||
| 100,665 | ||||||||||
| Belgium: 3.8% | ||||||||||
| 2,925 | Dexia | 94,174 | ||||||||
| 9,666 | Fortis | 310,426 | ||||||||
| 3,866 | @ | Fortis | 56 | |||||||
| 404,656 | ||||||||||
| Denmark: 1.1% | ||||||||||
| 2,600 | Danske Bank A/ S | 115,080 | ||||||||
| 115,080 | ||||||||||
| Finland: 2.9% | ||||||||||
| 2,633 | Fortum OYJ | 114,492 | ||||||||
| 2,500 | Outokumpu OYJ | 93,805 | ||||||||
| 4,550 | UPM-Kymmene OYJ | 102,207 | ||||||||
| 310,504 | ||||||||||
| France: 9.9% | ||||||||||
| 7,600 | Alcatel-Lucent | 73,879 | ||||||||
| 1,990 | BNP Paribas | 220,555 | ||||||||
| 2,340 | Sanofi-Aventis | 205,836 | ||||||||
| 3,250 | Total SA | 262,262 | ||||||||
| 6,600 | Vivendi | 298,249 | ||||||||
| 1,060,781 | ||||||||||
| Germany: 6.8% | ||||||||||
| 2,400 | Commerzbank AG | 101,823 | ||||||||
| 6,250 | Deutsche Post AG | 189,299 | ||||||||
| 8,350 | Deutsche Telekom AG | 171,549 | ||||||||
| 1,375 | E.ON AG | 269,131 | ||||||||
| 731,802 | ||||||||||
| Greece: 1.7% | ||||||||||
| 2,300 | OPAP SA | 94,167 | ||||||||
| 1,679 | Titan Cement Co. SA | 82,142 | ||||||||
| 176,309 | ||||||||||
| Hong Kong: 1.5% | ||||||||||
| 5,100 | Hang Seng Bank Ltd. | 104,193 | ||||||||
| 8,500 | Kingboard Chemicals Holdings | 55,831 | ||||||||
| 160,024 | ||||||||||
| Ireland: 1.4% | ||||||||||
| 7,600 | @ | Smurfit Kappa PLC | 153,319 | |||||||
| 153,319 | ||||||||||
| �� | Italy: 6.9% | |||||||||
| 13,500 | Enel S.p.A. | 161,870 | ||||||||
| 6,000 | ENI S.p.A. | 219,078 | ||||||||
| 11,650 | Intesa Sanpaolo S.p.A. | 88,453 | ||||||||
| 72,300 | Telecom Italia S.p.A. RNC | 187,248 | ||||||||
| 23,993 | Unipol S.p.A. | 86,064 | ||||||||
| 742,713 | ||||||||||
| Japan: 14.8% | ||||||||||
| 2,100 | Aoyama Trading Co., Ltd. | 54,896 | ||||||||
| 2,700 | Canon Sales Co., Inc. | 52,906 | ||||||||
| 3,100 | Chubu Electric Power Co., Inc. | 79,434 | ||||||||
| 3,500 | Daiichi Sankyo Co., Ltd. | 99,533 | ||||||||
| 8 | East Japan Railway Co. | 65,899 | ||||||||
| 7,300 | EDION Corp. | 83,850 | ||||||||
| 11,000 | Furukawa Electric Co., Ltd. | 52,834 | ||||||||
| 4,000 | Honda Motor Co., Ltd. | 149,787 | ||||||||
| 7,000 | Itochu Corp. | 88,456 | ||||||||
| 7 | KDDI Corp. | 52,869 | ||||||||
| 9,000 | Mitsubishi Materials Corp. | 52,691 | ||||||||
| 20,000 | Mitsubishi UFJ Financial Group, Inc. | 200,123 | ||||||||
| 6,000 | Onward Kashiyama Co., Ltd. | 61,858 | ||||||||
| 5,000 | Ricoh Co., Ltd. | 98,828 | ||||||||
| 1,400 | Sankyo Co., Ltd. | 59,768 | ||||||||
| 205 | Softbank Investment Corp. | 65,035 | ||||||||
| 12,700 | Sojitz Corp. | 58,297 | ||||||||
| 9,000 | Sumitomo Trust & Banking Co., Ltd. | 67,104 | ||||||||
| 3,300 | Tohoku Electric Power Co., Inc. | 69,732 | ||||||||
| 15,000 | Tokyo Gas Co., Ltd. | 66,872 | ||||||||
| 1,580,772 | ||||||||||
| Netherlands: 8.5% | ||||||||||
| 2,500 | ArcelorMittal | 199,174 | ||||||||
| 2,600 | European Aeronautic Defence and Space Co. NV | 88,629 | ||||||||
| 10,150 | Royal Dutch Shell PLC — Class A | 445,181 | ||||||||
| 9,550 | Royal KPN NV | 180,315 | ||||||||
| 913,299 | ||||||||||
| New Zealand: 0.8% | ||||||||||
| 25,777 | Telecom Corp. of New Zealand Ltd. | 86,589 | ||||||||
| 86,589 | ||||||||||
| Norway: 0.9% | ||||||||||
| 6,000 | DNB NOR ASA | 99,433 | ||||||||
| 99,433 | ||||||||||
| Spain: 6.3% | ||||||||||
| 5,225 | Banco Bilbao Vizcaya Argentaria SA | 132,229 | ||||||||
| 13,250 | Banco Santander Central Hispano SA | 289,773 | ||||||||
| 3,950 | Ebro Puleva SA | 81,706 | ||||||||
| 10,700 | Iberdrola SA | 172,609 | ||||||||
| 676,317 | ||||||||||
| Sweden: 1.0% | ||||||||||
| 34,000 | Telefonaktiebolaget LM Ericsson | 101,728 | ||||||||
| 101,728 | ||||||||||
| Switzerland: 4.3% | ||||||||||
| 610 | Nestle SA | 281,748 | ||||||||
| 3,400 | UBS AG — Reg | 182,282 | ||||||||
| 464,030 | ||||||||||
| United Kingdom: 23.1% | ||||||||||
| 9,000 | Aviva PLC | 141,799 | ||||||||
| 9,900 | Barclays PLC | 125,299 | ||||||||
| 41,900 | BP PLC | 545,123 | ||||||||
| 11,300 | GKN PLC | 86,494 | ||||||||
| 10,050 | HBOS PLC | 183,192 | ||||||||
| 21,750 | HSBC Holdings PLC | 431,231 | ||||||||
| 43,500 | ITV PLC | 89,922 | ||||||||
| 38,000 | Legal & General Group PLC | 110,936 | ||||||||
| 30,000 | Old Mutual PLC | 115,153 | ||||||||
| 22,200 | Royal Bank of Scotland Group PLC | 239,760 | ||||||||
| 18,300 | Tate & Lyle PLC | 166,065 | ||||||||
| 35,000 | Vodafone Group PLC | 137,919 | ||||||||
| 5,650 | Wolseley PLC | 98,267 | ||||||||
| 2,471,160 | ||||||||||
| Total Common Stock (Cost $9,919,314) | 10,349,181 | |||||||||
209
Table of Contents
| Shares | Value | |||||||||
| REAL ESTATE INVESTMENT TRUSTS: 0.7% | ||||||||||
| Germany: 0.7% | ||||||||||
| 4,300 | @ | Alstria Office AG | $ | 75,629 | ||||||
| Total Real Estate Investment Trusts (Cost $91,714) | 75,629 | |||||||||
Total Investments in Securities (Cost $10,011,028) | 97.4 | % | $ | 10,424,810 | ||||||||
Other Assets and Liabilities-Net | 2.6 | 277,770 | ||||||||||
Net Assets | 100.0 | % | $ | 10,702,580 | ||||||||
| @ | Non-income producing security | |
| * | Cost for federal income tax purposes is $10,015,580. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 851,424 | ||
| Gross Unrealized Depreciation | (442,194 | ) | ||
| Net Unrealized Appreciation | $ | 409,230 | ||
| Percentage of | ||||
| Industry | Net Assets | |||
| Aerospace/Defense | 0.8 | % | ||
| Apparel | 0.6 | |||
| Auto Manufacturers | 1.4 | |||
| Auto Parts & Equipment | 0.8 | |||
| Banks | 26.2 | |||
| Building Materials | 0.8 | |||
| Chemicals | 0.5 | |||
| Distribution/ Wholesale | 2.8 | |||
| Diversified Financial Services | 1.7 | |||
| Electric | 8.1 | |||
| Electrical Components & Equipment | 0.5 | |||
| Entertainment | 0.9 | |||
| Food | 4.9 | |||
| Forest Products & Paper | 2.4 | |||
| Gas | 0.6 | |||
| Insurance | 4.2 | |||
| Internet | 0.6 | |||
| Iron/ Steel | 2.7 | |||
| Leisure Time | 0.6 | |||
| Media | 3.6 | |||
| Mining | 0.5 | |||
| Office Property | 0.7 | |||
| Office/ Business Equipment | 0.9 | |||
| Oil & Gas | 13.8 | |||
| Pharmaceuticals | 2.9 | |||
| Retail | 1.3 | |||
| Telecommunications | 10.2 | |||
| Transportation | 2.4 | |||
| Other Assets and Liabilities — Net | 2.6 | |||
Net Assets | 100.0 | % | ||
210
Table of Contents
| Shares | Value | |||||||||
| COMMON STOCK: 97.2% | ||||||||||
| Banks: 13.1% | ||||||||||
| 4,825,000 | Promstroibank St. Petersburg | $ | 8,106,000 | |||||||
| 26,200,000 | Sberbank RF | 112,319,400 | ||||||||
| 120,425,400 | ||||||||||
| Beverages: 1.2% | ||||||||||
| 352,000 | @ | Efes Breweries International NV GDR | 11,485,760 | |||||||
| 11,485,760 | ||||||||||
| Cosmetics/ Personal Care: 0.9% | ||||||||||
| 193,500 | Kalina | 7,981,875 | ||||||||
| 7,981,875 | ||||||||||
| Electric: 5.4% | ||||||||||
| 65,273,353 | OGK-5 OJSC | 11,083,415 | ||||||||
| 428,242,036 | TGK-5 | 441,089 | ||||||||
| 31,500,000 | @ | Unified Energy System | 38,335,500 | |||||||
| 49,860,004 | ||||||||||
| Food: 3.4% | ||||||||||
| 260,000 | L | Wimm-Bill-Dann Foods OJSC ADR | 31,135,000 | |||||||
| 31,135,000 | ||||||||||
| Internet: 1.1% | ||||||||||
| 1,145,000 | @ | RBC Information Systems | 10,534,000 | |||||||
| 10,534,000 | ||||||||||
| Iron/ Steel: 8.9% | ||||||||||
| 502,000 | L | Mechel OAO ADR | 42,243,300 | |||||||
| 3,450,000 | Novolipetsk Steel | 13,386,000 | ||||||||
| 192,000 | L | Novolipetsk Steel GDR | 7,680,000 | |||||||
| 300,000 | Severstal GDR | 7,110,000 | ||||||||
| 500,000 | Severstal JSC | 11,800,000 | ||||||||
| 82,219,300 | ||||||||||
| Metal Fabricate/ Hardware: 3.5% | ||||||||||
| 450,000 | L | TMK OAO GDR | 20,025,000 | |||||||
| 37,700 | Vsmpo-Avisma Corp. | 11,969,750 | ||||||||
| 31,994,750 | ||||||||||
| Mining: 7.2% | ||||||||||
| 166,000 | L | MMC Norilsk Nickel ADR | 52,290,000 | |||||||
| 310,000 | L | Polyus Gold Co. ZAO ADR | 13,950,000 | |||||||
| 66,240,000 | ||||||||||
| Oil & Gas: 34.3% | ||||||||||
| 1,100,000 | Lukoil-Spon ADR | 100,540,000 | ||||||||
| 362,000 | Novatek OAO GDR | 20,272,000 | ||||||||
| 7,300,000 | OAO Gazprom | 90,228,000 | ||||||||
| 434,000 | OAO Gazprom ADR | 21,775,950 | ||||||||
| 3,280,000 | @ | OAO Rosneft Oil Co. GDR | 28,732,800 | |||||||
| 477,000 | L | Surgutneftegaz ADR | 31,243,500 | |||||||
| 192,000 | Tatneft GDR | 23,808,000 | ||||||||
| 316,600,250 | ||||||||||
| Pharmaceuticals: 1.2% | ||||||||||
| 500,000 | @,L | Pharmstandard — Reg S GDR | 10,905,000 | |||||||
| 10,905,000 | ||||||||||
| Pipelines: 1.8% | ||||||||||
| 8,700 | Transneft | 16,747,500 | ||||||||
| 16,747,500 | ||||||||||
| Retail: 1.9% | ||||||||||
| 387,000 | @ | Magnit OAO | 17,647,200 | |||||||
| 17,647,200 | ||||||||||
| Telecommunications: 13.3% | ||||||||||
| 469,000 | L | Mobile Telesystems Finance SA ADR | 38,927,000 | |||||||
| 137,000 | Moscow City Telephone | 4,125,152 | ||||||||
| 1,275,000 | Rostelecom | 12,597,000 | ||||||||
| 105,500,000 | Sibirtelecom | 11,921,500 | ||||||||
| 108,000,000 | Uralsvyazinform | 6,858,000 | ||||||||
| 1,050,000 | Vimpel-Communications OAO ADR | 34,723,500 | ||||||||
| 2,400,000 | VolgaTelecom | 13,440,000 | ||||||||
| 122,592,152 | ||||||||||
| Total Common Stock (Cost $456,675,000) | 896,368,191 | |||||||||
| INVESTMENT COMPANIES: 0.9% | ||||||||||
| Hedge Fund:��0.9% | ||||||||||
| 2,384,270 | @ | RenShares Utilities Ltd. | 7,987,305 | |||||||
| Total Mutual Funds (Cost $3,317,280) | 7,987,305 | |||||||||
| PREFERRED STOCK: 0.8% | ||||||||||
| Machinery — Diversified: 0.8% | ||||||||||
| 43,500,000 | Achinsk Refinery | 7,917,000 | ||||||||
| Total Preferred Stock (Cost $3,106,603) | 7,917,000 | |||||||||
| Total Long-Term Investments (Cost $463,098,883) | 912,272,496 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| SHORT-TERM INVESTMENTS: 12.3% | ||||||||||
| Securities Lending CollateralCC: 12.3% | ||||||||||
| $ | 113,588,003 | Bank of New York Mellon Corp. Institutional Cash Reserves | $ | 113,588,003 | ||||||
| Total Short-Term Investments (Cost $113,588,003) | 113,588,003 | |||||||||
Total Investments in Securities (Cost $576,686,886)* | 111.2 | % | $ | 1,025,860,499 | ||||||||
Other Assets and Liabilities-Net | (11.2 | ) | (103,356,759 | ) | ||||||||
Net Assets | 100.0 | % | $ | 922,503,740 | ||||||||
| @ | Non-income producing security | |||||
| ADR | American Depositary Receipt | |||||
| GDR | Global Depositary Receipt | |||||
| cc | Securities purchased with cash collateral for securities loaned. | |||||
| L | Loaned security, a portion or all of the security is on loan at October 31, 2007. | |||||
| * | Cost for federal income tax purposes is $577,279,443. | |||||
| Net unrealized appreciation consists of: | ||||||
| Gross Unrealized Appreciation | $ | 448,581,056 | ||||
| Gross Unrealized Depreciation | — | |||||
| Net Unrealized Appreciation | $ | 448,581,056 | ||||
211
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| CORPORATE BONDS/ NOTES: 27.4% | ||||||||||
| Argentina: 0.8% | ||||||||||
| $ | 620,000 | #,C | Alto Parana SA, 6.375%, due 06/09/17 | $ | 634,880 | |||||
| 100,000 | #,C | Cia de Transporte de Energia Electrica de Alta Tension SA, 8.875%, due 12/15/16 | 92,500 | |||||||
| 839,273 | S | Province of Mendoza 5.500%, due 09/04/18 | 671,419 | |||||||
| 12,410 | +,#,C | Transportadora Gas del Norte, 6.500% (step rate 7.500%), due 12/31/12 | 11,169 | |||||||
| 14,600 | +,C | Transportadora Gas del Norte, 6.500% (step rate 7.500%), due 12/31/12 | 13,286 | |||||||
| 21,900 | +,C,S | Transportadora Gas del Norte, 6.500% (step rate 7.500%), due 12/31/12 | 19,929 | |||||||
| 1,285,000 | +,# | Transportadora Gas Norte, 7.500% (step rate 8.000%), due 12/31/12 | 1,156,500 | |||||||
| 2,599,683 | ||||||||||
| Bahamas: 0.5% | ||||||||||
| BRL 2,300,000 | Banco Votorantim Nassau, 10.625%, due 04/10/14 | 1,280,140 | ||||||||
| BRL 250,000 | # | Banco Votorantim/ Nassau, 10.625%, due 04/10/14 | 137,593 | |||||||
| 1,417,733 | ||||||||||
| Bermuda: 0.1% | ||||||||||
| $ | 265,000 | #,C | Citic Resources Finance Ltd., 6.750%, due 05/15/14 | 255,063 | ||||||
| 255,063 | ||||||||||
| Brazil: 0.3% | ||||||||||
| 1,000,000 | Banco Bmg SA, 9.150%, due 01/15/16 | 1,052,500 | ||||||||
| 1,052,500 | ||||||||||
| British Virgin Islands: 0.4% | ||||||||||
| 400,000 | C | Citic Resources Finance Ltd., 6.750%, due 05/15/14 | 385,000 | |||||||
| 975,000 | # | GTL Trade Finance, Inc., 7.250%, due 10/20/17 | 989,157 | |||||||
| 1,374,157 | ||||||||||
| Cayman Islands: 3.1% | ||||||||||
| BRL 2,300,000 | # | Banco Do Brasil (Cayman), 9.750%, due 07/18/17 | 1,182,793 | |||||||
| BRL 1,900,000 | Banco Safra Cayman Islands Ltd., 10.875%, due 04/03/17 | 1,065,375 | ||||||||
| BRL 500,000 | # | Banco Safra Cayman Islands Ltd., 10.875%, due 04/03/17 | 275,908 | |||||||
| $ | 100,000 | +,# | Earls Eight Ltd., 8.000% (step rate 9.000%), due 12/31/12 | 90,000 | ||||||
| 320,000 | #,X,Z | Interoceanica IV Finance Ltd., 3.990%, due 11/30/18 | 207,344 | |||||||
| 1,200,000 | #,X,Z | Interoceanica IV Finance Ltd., 4.160%, due 11/30/25 | 573,900 | |||||||
| 3,000,000 | Z | Peru Enhanced Pass-through Finance Ltd., 3.600%, due 05/31/18 | 2,062,500 | |||||||
| 250,000 | #,Z | Peru Enhanced Pass-through Finance Ltd., 3.610%, due 05/31/18 | 171,250 | |||||||
| 1,025,000 | C,S | Vale Overseas Ltd., 6.250%, due 01/23/17 | 1,041,517 | |||||||
| 3,050,000 | C,S | Vale Overseas Ltd., 6.875%, due 11/21/36 | 3,185,856 | |||||||
| 9,856,443 | ||||||||||
| Colombia: 0.9% | ||||||||||
| 835,000 | Bancolombia SA, 6.875%, due 05/25/17 | 809,950 | ||||||||
| 695,000 | #,C | EEB International Ltd., 8.750%, due 10/31/14 | 719,325 | |||||||
| 1,300,000 | #,C | TGI International Ltd., 9.500%, due 10/03/17 | 1,366,560 | |||||||
| 2,895,835 | ||||||||||
| Cyprus: 0.4% | ||||||||||
| 1,150,000 | # | Alfa MTN Markets Ltd. for ABH Finanial Ltd., 8.200%, due 06/25/12 | 1,101,010 | |||||||
| 1,101,010 | ||||||||||
| Dominican Republic: 0.0% | ||||||||||
| 143,584 | Standard Bank PLC, due 07/20/09 | 152,271 | ||||||||
| 152,271 | ||||||||||
| Germany: 0.9% | ||||||||||
| 2,400,000 | S | Morgan Stanley Bank AG for OAO Gazprom, 9.625%, due 03/01/13 | 2,779,978 | |||||||
| 2,779,978 | ||||||||||
| India: 0.2% | ||||||||||
| 650,000 | #,C | ICICI Bank Ltd, 6.625%, due 10/03/12 | 655,881 | |||||||
| 655,881 | ||||||||||
| Indonesia: 0.4% | ||||||||||
| 610,000 | C | BLT Finance BV, 7.500%, due 05/15/14 | 557,179 | |||||||
| 680,000 | C,S | Indosat Finance Co. BV, 7.125%, due 06/22/12 | 681,826 | |||||||
| 1,239,005 | ||||||||||
| Ireland: 1.4% | ||||||||||
| 1,200,000 | C | Alfa Bond Issuance PLC for OJSC Alfa Bank, 8.635%, due 02/22/17 | 1,135,529 | |||||||
| RUB 2,000,000 | S | Dal Capital for Vneshtorgbk, 7.000%, due 04/13/09 | 81,131 | |||||||
| $ | 100,000 | +,# | Eirles Eight Ltd., 8.000% (step rate 9.000%), due 12/31/12 | 90,000 | ||||||
| RUB 25,000,000 | Sibacademfinance PLC for URSA Bank, 9.125%, due 02/26/10 | 933,158 | ||||||||
| $ | 2,000,000 | # | TransCapitalInvest Ltd. for OJSC AK Transneft, 6.103%, due 06/27/12 | 2,021,192 | ||||||
| 4,261,010 | ||||||||||
212
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Luxembourg: 2.2% | ||||||||||
| $ | 2,550,000 | S | Gaz Capital for Gazprom, 8.625%, due 04/28/34 | $ | 3,247,119 | |||||
| 1,500,000 | +,C,S | Kuznetski Capital for Bank of Moscow, 7.500% (step rate 8.961%), due 11/25/15 | 1,480,350 | |||||||
| 500,000 | RSHB Capital SA for OJSC Russian Agricultural Bank, 6.299%, due 05/15/17 | 478,450 | ||||||||
| 450,000 | # | RSHB Capital SA for OJSC Russian Agricultural Bank, 6.299%, due 05/15/17 | 427,455 | |||||||
| 1,205,000 | UBS Luxembourg SA for OJSC Vimpel Communications, 8.250%, due 05/23/16 | 1,250,188 | ||||||||
| 6,883,562 | ||||||||||
| Netherlands: 2.9% | ||||||||||
| 500,000 | C | Excelcomindo Finance Co., 7.125%, due 01/18/13 | 497,500 | |||||||
| 100,000 | #,C,S | Excelcomindo Finance Co. BV, 7.125%, due 01/18/13 | 100,000 | |||||||
| 600,000 | HSBK Europe Bv, 7.250%, due 05/03/17 | 564,000 | ||||||||
| 400,000 | # | HSBK Europe BV, 7.250%, due 05/03/17 | 405,056 | |||||||
| 1,200,000 | Kazkommerts International BV, 7.500%, due 11/29/16 | 1,008,420 | ||||||||
| 210,000 | # | Kazkommerts International BV, 7.500%, due 11/29/16 | 179,025 | |||||||
| 545,000 | #,C | Lukoil International Finance BV, 6.656%, due 06/07/22 | 523,037 | |||||||
| 550,000 | Majapahit Holding BV, 7.250%, due 06/28/17 | 553,042 | ||||||||
| 930,000 | # | Majapahit Holding BV, 7.250%, due 06/28/17 | 926,513 | |||||||
| 100,000 | #,S | Majapahit Holding BV, 7.750%, due 10/17/16 | 103,630 | |||||||
| 650,000 | Majapahit Holding BV, 7.750%, due 10/17/16 | 664,736 | ||||||||
| 2,235,000 | # | Majapahit Holding BV, 7.875%, due 06/29/37 | 2,223,825 | |||||||
| 1,500,000 | TuranAlem Finance BV, 8.250%, due 01/22/37 | 1,361,250 | ||||||||
| 9,110,034 | ||||||||||
| Peru: 0.4% | ||||||||||
| PEN 3,900,000 | I | Banco Credito Del Peru, 7.170%, due 10/15/22 | 1,299,762 | |||||||
| 1,299,762 | ||||||||||
| Philippines: 1.0% | ||||||||||
| $ | 2,300,000 | National Power Corp., 6.875%, due 11/02/16 | 2,333,072 | |||||||
| 305,000 | #,S | National Power Corp., 6.875%, due 11/02/16 | 313,006 | |||||||
| 450,000 | S | National Power Corp., 9.625%, due 05/15/28 | 554,625 | |||||||
| 3,200,703 | ||||||||||
| South Korea: 0.8% | ||||||||||
| 1,280,000 | C | Shinhan Bank, 6.819%, due 09/20/36 | 1,277,338 | |||||||
| 1,230,000 | C | Woori Bank, 6.208%, due 05/02/37 | 1,163,916 | |||||||
| 2,441,254 | ||||||||||
| Switzerland: 0.1% | ||||||||||
| 400,000 | # | UBS AG, due 12/27/13 | 397,866 | |||||||
| 397,866 | ||||||||||
| Trinidad: 0.3% | ||||||||||
| 1,000,000 | C | Petroleum Co. of Trinidad & Tobago Ltd., 6.000%, due 05/08/22 | 986,019 | |||||||
| 986,019 | ||||||||||
| Turkey: 0.1% | ||||||||||
| TRY 400,000 | S | European Investment Bank, 10.000%, due 01/28/11 | 310,629 | |||||||
| 310,629 | ||||||||||
| Ukraine: 0.1% | ||||||||||
| $ | 500,000 | Standard Bank (Nak), 8.125%, due 09/30/09 | 447,250 | |||||||
| 447,250 | ||||||||||
| United Kingdom: 2.3% | ||||||||||
| 674,000 | # | Barclays Bank PLC, 10.250%, due 07/17/22 | 787,367 | |||||||
| 550,000 | S | City of Kiev Ukraine, 8.000%, due 11/06/15 | 558,140 | |||||||
| 1,200,000 | HSBC Bank PLC for Ukrsibbank, 7.750%, due 12/21/11 | 1,207,458 | ||||||||
| 2,025,785 | # | Standard Bank PLC, 15.000%, due 03/12/12 | 2,025,785 | |||||||
| 2,600,000 | UK SPV Credit Finance PLC for JSC Commercial Bank Privatbank, 8.000%, due 02/06/12 | 2,416,144 | ||||||||
| 200,000 | # | UK SPV Credit Finance PLC for JSC Commercial Bank Privatbank, 8.000%, due 02/06/12 | 186,090 | |||||||
| 7,180,984 | ||||||||||
| United States: 3.0% | ||||||||||
| 252,290 | S | Citigroup Funding, Inc., 5.990%, due 08/17/10 | 355,091 | |||||||
| 2,401,717 | # | Citigroup Funding, Inc., 6.000%, due 05/18/15 | 2,630,601 | |||||||
| 2,800,000 | Citigroup Funding, Inc., 10.000%, due 01/03/17 | 2,894,354 | ||||||||
| 2,660,000 | #,C | Pemex Project Funding Master Trust, 5.750%, due 03/01/18 | 2,695,910 | |||||||
| 955,000 | # | Pemex Project Funding Master Trust, 6.625%, due 06/15/35 | 1,025,670 | |||||||
| 9,601,626 | ||||||||||
| Venezuela: 4.8% | ||||||||||
| 6,500,000 | C | Petroleos de Venezuela SA, 5.250%, due 04/12/17 | 4,927,000 | |||||||
| 12,850,000 | C | Petroleos de Venezuela SA, 5.375%, due 04/12/27 | 8,326,800 | |||||||
213
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Venezuela (continued) | ||||||||||
| $ | 2,800,000 | C | Petroleos de Venezuela SA, 5.500%, due 04/12/37 | $ | 1,750,000 | |||||
| 15,003,800 | ||||||||||
| Total Corporate Bonds/Notes (Cost $87,421,541) | 86,504,058 | |||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: 0.9% | ||||||||||
| Dominican Republic: 0.9% | ||||||||||
| 2,328,041 | S | Dominican Republic, 9.040%, due 01/23/18 | 2,700,527 | |||||||
| Total Collateralized Mortgage Obligations (Cost $2,669,011) | 2,700,527 | |||||||||
| OTHER BONDS: 61.8% | ||||||||||
| Argentina: 7.7% | ||||||||||
| ARS 4,000,000 | S,X | Argentina Government International Bond, due 09/30/14 | 1,272,702 | |||||||
| $ | 19,905,000 | S | Argentina Government International Bond, due 12/15/35 | 2,746,890 | ||||||
| ARS 5,000 | Argentina Government International Bond, due 12/15/35 | 177 | ||||||||
| $ | 8,325,000 | S | Argentina Government International Bond, due 12/15/35 | 1,053,945 | ||||||
| 1,900,000 | Z | Argentina Government International Bond, 1.840%, due 10/03/15 | 1,643,500 | |||||||
| ARS 1,600,000 | S | Argentina Government International Bond, 5.830%, due 12/31/33 | 637,963 | |||||||
| $ | 8,184,750 | S | Argentina Government International Bond, 8.280%, due 12/31/33 | 8,307,521 | ||||||
| 280,000 | #,S | Province of Buenos Aires, 9.375%, due 09/14/18 | 256,900 | |||||||
| 5,600,000 | +,S | Province of Buenos Aires Argentina, 3.000% (step rate 4.000%), due 05/15/35 | 2,279,200 | |||||||
| 2,200,000 | Province of Buenos Aires Argentina, 9.375%, due 09/14/18 | 2,018,500 | ||||||||
| 4,130,000 | Province of Buenos Aires Argentina, 9.625%, due 04/18/28 | 3,737,650 | ||||||||
| 500,000 | # | Provincia Del Neuquen Titulo Provincial, 8.656%, due 10/18/14 | 512,500 | |||||||
| 24,467,448 | ||||||||||
| Belize: 0.1% | ||||||||||
| 330,000 | +,C | Belize Government International Bond, 4.250% (step rate 6.000%), due 02/20/29 | 250,800 | |||||||
| 250,800 | ||||||||||
| Bosnia and Herzegovina: 0.1% | ||||||||||
| DEM 750,000 | S,Z | Bosnia & Herzegovina Government International Bond, 11.850%, due 12/11/17 | 349,948 | |||||||
| 349,948 | ||||||||||
| Brazil: 5.8% | ||||||||||
| $ | 150,000 | S | Brazil Government International Bond, 8.250%, due 01/20/34 | 194,775 | ||||||
| 1,680,000 | S | Brazil Government International Bond, 8.750%, due 02/04/25 | 2,205,000 | |||||||
| 100,000 | S | Brazil Government International Bond, 8.875%, due 10/14/19 | 126,500 | |||||||
| 600,000 | S | Brazil Government International Bond, 10.125%, due 05/15/27 | 887,280 | |||||||
| 3,000,000 | C,S | Brazil Government International Bond, 11.000%, due 08/17/40 | 4,034,250 | |||||||
| 6,200,000 | Brazilian Government International Bond, 7.125%, due 01/20/37 | 7,176,500 | ||||||||
| 3,600,000 | C | Federative Republic of Brazil, 6.000%, due 01/17/17 | 3,688,200 | |||||||
| 18,312,505 | ||||||||||
| Colombia: 3.4% | ||||||||||
| 50,000 | S | Colombia Government International Bond, 10.000%, due 01/23/12 | 58,500 | |||||||
| 58,000 | S | Colombia Government International Bond, 11.750%, due 02/25/20 | 86,855 | |||||||
| 4,930,000 | S | Republic of Colombia, 7.375%, due 01/27/17 | 5,452,580 | |||||||
| 1,420,000 | S | Republic of Colombia, 7.375%, due 09/18/37 | 1,625,190 | |||||||
| 2,055,000 | S | Republic of Colombia, 8.125%, due 05/21/24 | 2,481,413 | |||||||
| COP 2,061,000,000 | Republic of Colombia, 9.850%, due 06/28/27 | 1,065,049 | ||||||||
| 10,769,587 | ||||||||||
| Dominican Republic: 0.8% | ||||||||||
| $ | 250,000 | #,S | Dominican Republic International Bond, 8.625%, due 04/20/27 | 288,750 | ||||||
| 2,025,000 | Dominican Republic International Bond, 8.625%, due 04/20/27 | 2,338,875 | ||||||||
| 2,627,625 | ||||||||||
| El Salvador: 2.2% | ||||||||||
| 200,000 | #,S | El Salvador Government International Bond, 7.650%, due 06/15/35 | 232,500 | |||||||
| 2,430,000 | El Salvador Government International Bond, 7.650%, due 06/15/35 | 2,830,950 | ||||||||
| 3,240,000 | S | El Salvador Government International Bond, 8.250%, due 04/10/32 | 3,969,000 | |||||||
| 7,032,450 | ||||||||||
| Ghana: 0.3% | ||||||||||
| 900,000 | # | Republic of Ghana, 8.500%, due 10/04/17 | 927,000 | |||||||
| 927,000 | ||||||||||
| Indonesia: 2.7% | ||||||||||
| 200,000 | # | Indonesia Government International Bond, 6.625%, due 02/17/37 | 197,250 | |||||||
214
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Indonesia (continued) | ||||||||||
| $ | 4,250,000 | Indonesia Government International Bond, 6.625%, due 02/17/37 | $ | 4,175,285 | ||||||
| 3,000,000 | Indonesia Government International Bond, 7.500%, due 01/15/16 | 3,286,173 | ||||||||
| 670,000 | S | Indonesia Government International Bond, 8.500%, due 10/12/35 | 817,325 | |||||||
| 8,476,033 | ||||||||||
| Iraq: 1.6% | ||||||||||
| 8,300,000 | C,S | Republic of Iraq, 5.800%, due 01/15/28 | 5,063,000 | |||||||
| 5,063,000 | ||||||||||
| Ivory Coast: 0.0% | ||||||||||
| 400,000 | S | Ivory Coast Government International Bond, 2.000%, due 03/30/18 | 147,000 | |||||||
| 147,000 | ||||||||||
| Lebanon: 0.1% | ||||||||||
| 210,000 | Lebanon Government International Bond, 8.250%, due 04/12/21 | 193,200 | ||||||||
| 193,200 | ||||||||||
| Mexico: 2.9% | ||||||||||
| 4,200,000 | C | Mexico Government International Bond, 5.625%, due 01/15/17 | 4,271,400 | |||||||
| 2,100,000 | Mexico Government International Bond, 7.500%, due 04/08/33 | 2,558,850 | ||||||||
| 1,700,000 | Mexico Government International Bond, 8.300%, due 08/15/31 | 2,235,500 | ||||||||
| 381 | United Mexican States, Discount Note, due 11/07/07 | 11,621 | ||||||||
| 9,077,371 | ||||||||||
| Nigeria: 0.7% | ||||||||||
| 500,000 | S | Central Bank of Nigeria, 5.092%, due 01/05/10 | 86,750 | |||||||
| 2,000,000 | UBS AG, due 08/02/17 | 1,977,040 | ||||||||
| 2,063,790 | ||||||||||
| Pakistan: 0.6% | ||||||||||
| 830,000 | Islamic Republic of Pakistan, 6.875%, due 06/01/17 | 753,225 | ||||||||
| 380,000 | Pakistan Government International Bond, 7.125%, due 03/31/16 | 353,064 | ||||||||
| 1,010,000 | S | Pakistan Government International Bond, 7.875%, due 03/31/36 | 949,581 | |||||||
| 2,055,870 | ||||||||||
| Panama: 1.0% | ||||||||||
| 50,000 | Panama Government International Bond, 6.700%, due 01/26/36 | 52,750 | ||||||||
| 1,595,000 | S | Panama Government International Bond, 7.125%, due 01/29/26 | 1,766,463 | |||||||
| 1,000,000 | Panama Government International Bond, 8.875%, due 09/30/27 | 1,302,500 | ||||||||
| 130,000 | S | Panama Government International Bond, 9.375%, due 04/01/29 | 177,450 | |||||||
| 3,299,163 | ||||||||||
| Peru: 2.9% | ||||||||||
| 3,500,000 | Peru Government International Bond, 6.550%, due 03/14/37 | 3,692,500 | ||||||||
| PEN 5,000,000 | # | Peru Government International Bond, 6.900%, due 08/12/37 | 1,745,497 | |||||||
| $ | 2,420,000 | S | Peru Government International Bond, 7.350%, due 07/21/25 | 2,789,050 | ||||||
| 370,000 | S | Peru Government International Bond, 8.750%, due 11/21/33 | 495,800 | |||||||
| 276,000 | C | Peru Government International. Bond, 6.438%, due 03/07/17 | 275,862 | |||||||
| 140,000 | Republic of Peru, 6.438%, due 03/07/17 | 139,965 | ||||||||
| 9,138,674 | ||||||||||
| Philippines: 5.4% | ||||||||||
| 4,430,000 | S | Philippine Government International Bond, 7.750%, due 01/14/31 | 5,072,350 | |||||||
| 1,950,000 | Philippine Government International Bond, 8.000%, due 01/15/16 | 2,218,125 | ||||||||
| 4,500,000 | Philippine Government International Bond, 8.250%, due 01/15/14 | 5,090,400 | ||||||||
| 1,100,000 | Philippine Government International Bond, 8.875%, due 03/17/15 | 1,298,000 | ||||||||
| 2,000,000 | Philippine Government International Bond, 9.000%, due 02/15/13 | 2,310,000 | ||||||||
| 500,000 | S | Philippine Government International Bond, 9.375%, due 01/18/17 | 621,250 | |||||||
| 270,000 | S | Philippine Government International Bond, 9.875%, due 01/15/19 | 352,350 | |||||||
| 16,962,475 | ||||||||||
| Russia: 4.8% | ||||||||||
| 4,544,100 | +,S | Russia Government International Bond, 7.500%, due 03/31/30 | 5,125,958 | |||||||
| 5,500,000 | S | Russia Government International Bond, 12.750%, due 06/24/28 | 9,912,458 | |||||||
| 15,038,416 | ||||||||||
| South Africa: 0.1% | ||||||||||
| 205,000 | South Africa Government International Bond, 5.875%, due 05/30/22 | 206,501 | ||||||||
| 206,501 | ||||||||||
| Sri Lanka: 0.1% | ||||||||||
| 370,000 | # | Democratic Socialist Republic of Sri Lanka, 8.250%, due 10/24/12 | 369,538 | |||||||
| 369,538 | ||||||||||
215
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| Turkey: 7.2% | ||||||||||
| $ | 8,250,000 | S | Republic of Turkey, 7.000%, due 09/26/16 | $ | 8,673,215 | |||||
| 1,000,000 | Turkey Government International Bond, 6.875%, due 03/17/36 | 996,300 | ||||||||
| 220,000 | S | Turkey Government International Bond, 7.250%, due 03/15/15 | 234,036 | |||||||
| 7,550,000 | S | Turkey Government International Bond, 7.375%, due 02/05/25 | 8,050,565 | |||||||
| 1,530,000 | S | Turkey Government International Bond, 8.000%, due 02/14/34 | 1,723,086 | |||||||
| 1,200,000 | Turkey Government International Bond, 9.500%, due 01/15/14 | 1,416,000 | ||||||||
| TRY 1,580,000 | Turkey Government International Bond, 10.000%, due 02/15/12 | 1,479,951 | ||||||||
| TRY 130,000 | Turkey Government International Bond, 14.000%, due 01/19/11 | 112,147 | ||||||||
| 22,685,300 | ||||||||||
| Ukraine: 2.8% | ||||||||||
| $ | 7,200,000 | Ukraine Government International Bond, 6.580%, due 11/21/16 | 7,307,849 | |||||||
| 180,000 | #,S | Ukraine Government International Bond, 6.580%, due 11/21/16 | 183,375 | |||||||
| 1,180,000 | S | Ukraine Government International Bond, 7.650%, due 06/11/13 | 1,270,860 | |||||||
| 8,762,084 | ||||||||||
| United Kingdom: 0.9% | ||||||||||
| 1,400,000 | Credit Suisse First Boston International for CJSC The EXIM of Ukraine, 6.800%, due 10/04/12 | 1,370,880 | ||||||||
| 1,500,000 | Credit Suisse First Boston International for CJSC The EXIM of Ukraine, 7.650%, due 09/07/11 | 1,523,252 | ||||||||
| 2,894,132 | ||||||||||
| Uruguay: 3.7% | ||||||||||
| 370,000 | S | Oriental Republic of Uruguay, 7.625%, due 03/21/36 | 415,325 | |||||||
| 3,517,500 | & | Uruguay Government International Bond, 7.875%, due 01/15/33 | 4,009,950 | |||||||
| 3,300,000 | S | Uruguay Government International Bond, 8.000%, due 11/18/22 | 3,778,500 | |||||||
| 2,780,000 | S | Uruguay Government International Bond, 9.250%, due 05/17/17 | 3,377,700 | |||||||
| 100,000 | Uruguay Government International Bond, 7.500%, due 03/15/15 | 108,500 | ||||||||
| 11,689,975 | ||||||||||
| Venezuela: 3.9% | ||||||||||
| 1,500,000 | Bolivarian Republic of Venezuela, 9.375%, due 01/13/34 | 1,660,500 | ||||||||
| 1,400,000 | Republic of Venezuela, 6.000%, due 12/09/20 | 1,182,300 | ||||||||
| 3,000,000 | S | Venezuela Government International Bond, 5.750%, due 02/26/16 | 2,595,000 | |||||||
| 6,000,000 | Venezuela Government International Bond, 7.650%, due 04/21/25 | 5,715,000 | ||||||||
| 300,000 | S | Venezuela Government International Bond, 8.500%, due 10/08/14 | 309,000 | |||||||
| 300,000 | S | Venezuela Government International Bond, 9.250%, due 09/15/27 | 329,550 | |||||||
| 340,000 | S | Venezuela Government International Bond, 13.625%, due 08/15/18 | 461,550 | |||||||
| 12,252,900 | ||||||||||
| Total Other Bonds (Cost $193,558,926) | 195,112,785 | |||||||||
Total Investments in Securities (Cost $283,649,478)* | 90.1 | % | $ | 284,317,370 | ||||||||
Other Assets and Liabilities-Net | 9.9 | 31,345,049 | ||||||||||
Net Assets | 100.0 | % | $ | 315,662,419 | ||||||||
| & | 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 footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| C | Bond may be called prior to maturity date. | |
| I | Illiquid security | |
| S | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| ARS | Argentine Peso | |
| BRL | Brazilian Real | |
| COP | Colombian Peso | |
| PEN | Peruvian Nuevo Sol | |
| RUB | Russian Ruble | |
| TRY | Turkish Lira | |
| * | Cost for federal income tax purposes is $283,725,115. Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 5,490,635 | ||
| Gross Unrealized Depreciation | (4,898,380 | ) | ||
| Net Unrealized Appreciation | $ | 592,255 | ||
216
Table of Contents
| Percentage of | ||||
| Industry | Net Assets | |||
| Banks | 6.3 | % | ||
| Collateralized Mortgage Obligations | 0.9 | |||
| Diversified Financial Services | 6.0 | |||
| Electric | 2.7 | |||
| Foreign Government Bonds | 61.8 | |||
| Forest Products & Paper | 0.2 | |||
| Gas | 0.4 | |||
| Iron/ Steel | 0.3 | |||
| Mining | 1.3 | |||
| Multi-National | 0.1 | |||
| Municipal | 0.2 | |||
| Oil & Gas | 8.5 | |||
| Telecommunications | 0.8 | |||
| Transportation | 0.6 | |||
| Other Assets and Liabilities — Net | 9.9 | |||
Net Assets | 100.0 | % | ||
ING Emerging Markets Fixed Income Fund Open Futures Contracts on October 31, 2007
| Number of | Notional | Expiration | Unrealized | |||||||||||||
| Contract Description | Contracts | Market Value($) | Date | Depreciation | ||||||||||||
Long Contracts | ||||||||||||||||
| U.S. Treasury Long Bond | 10 | 1,125,938 | 12/19/07 | $ | (3,438 | ) | ||||||||||
| $ | (3,438 | ) | ||||||||||||||
217
Table of Contents
| Principal | ||||||||||
| Amount | Value | |||||||||
| CORPORATE BONDS/NOTES: 2.2% | ||||||||||
| Airlines: 0.5% | ||||||||||
| $ | 150,000 | C | Delta Airlines, Inc., 7.570%, due 11/18/10 | $ | 155,003 | |||||
| 155,003 | ||||||||||
| Beverages: 1.5% | ||||||||||
| BRL 900,000 | @@,# | Ambev International Finance Co., Ltd., 9.500%, due 07/24/17 | 468,032 | |||||||
| 468,032 | ||||||||||
| Electric: 0.2% | ||||||||||
| $ | 64,000 | C | Commonwealth Edison Co., 4.700%, due 04/15/15 | 60,367 | ||||||
| 60,367 | ||||||||||
| Total Corporate Bonds/Notes (Cost $700,505) | 683,402 | |||||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS: 13.6% | ||||||||||
| Federal Home Loan Mortgage Corporation: 5.3% | ||||||||||
| 56,000 | Z | 5.170%, due 03/15/31 | 16,980 | |||||||
| 1,253,000 | W | 5.500%, due 11/15/34 | 1,233,617 | |||||||
| 225,000 | W | 6.000%, due 11/15/33 | 226,441 | |||||||
| 152,000 | W | 6.500%, due 11/15/34 | 155,681 | |||||||
| 1,632,719 | ||||||||||
| Federal National Mortgage Corporation: 8.3% | ||||||||||
| 267,000 | 5.000%, due 11/15/20 | 262,870 | ||||||||
| 310,585 | S | 5.000%, due 03/01/37 | 293,541 | |||||||
| 481,000 | W | 5.000%, due 11/15/37 | 461,610 | |||||||
| 221,000 | W | 5.500%, due 11/15/18 | 221,380 | |||||||
| 426,781 | S | 5.500%, due 06/01/37 | 420,632 | |||||||
| 441,000 | S | 6.000%, due 11/15/34 | 444,239 | |||||||
| 432,000 | 6.500%, due 11/13/36 | 442,159 | ||||||||
| 2,546,431 | ||||||||||
| Total U.S. Government Agency Obligations (Cost $4,156,910) | 4,179,150 | |||||||||
| U.S. TREASURY OBLIGATIONS: 22.4% | ||||||||||
| U.S. Treasury Bonds: 0.7% | ||||||||||
| 200,000 | 4.750%, due 08/15/17 | 204,469 | ||||||||
| 204,469 | ||||||||||
| U.S. Treasury Notes: 14.2% | ||||||||||
| 106,000 | Z | 3.522%, due 10/31/12 | 104,973 | |||||||
| 400,000 | Z | 3.162%, due 10/31/09 | 397,844 | |||||||
| 1,799,000 | 4.000%, due 09/30/09 | 1,802,092 | ||||||||
| 2,060,000 | 4.500%, due 05/15/10 | 2,089,775 | ||||||||
| 4,394,684 | ||||||||||
| Treasury Inflation Indexed Protected Securities: 7.5% | ||||||||||
| 139,325 | 2.000%, due 01/15/16 | 138,281 | ||||||||
| 135,129 | 2.375%, due 04/15/11 | 137,272 | ||||||||
| 132,999 | 2.375%, due 01/15/17 | 135,877 | ||||||||
| 555,927 | 2.375%, due 01/15/25 | 567,828 | ||||||||
| 1,003,190 | 2.625%, due 07/15/17 | 1,048,413 | ||||||||
| 281,449 | 3.875%, due 01/15/09 | 289,014 | ||||||||
| 2,316,685 | ||||||||||
| Total U.S. Treasury Obligations (Cost $6,852,811) | 6,915,838 | |||||||||
| ASSET-BACKED SECURITIES: 0.8% | ||||||||||
| Automobile Asset-Backed Securities: 0.8% | ||||||||||
| 115,495 | C,S | AmeriCredit Automobile Receivables Trust, 4.220%, due 07/06/09 | 115,248 | |||||||
| 123,049 | C,S | Morgan Stanley Auto Loan Trust, 3.240%, due 03/15/12 | 122,103 | |||||||
| Total Asset-Backed Securities (Cost $235,389) | 237,351 | |||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS: 1.5% | ||||||||||
| 122,000 | C,S | Greenwich Capital Commercial Funding Corp., 5.117%, due 04/10/37 | 121,895 | |||||||
| 250,000 | C,S | JPMorgan Chase Commercial Mortgage Securities Corp., 4.865%, due 03/15/46 | 245,005 | |||||||
| 97,000 | C,S | LB-UBS Commercial Mortgage Trust, 5.103%, due 11/15/30 | 96,913 | |||||||
| Total Collateralized Mortgage Obligations (Cost $461,106) | 463,813 | |||||||||
| OTHER BONDS: 56.4% | ||||||||||
| Foreign Government Bonds: 56.4% | ||||||||||
| EUR 4,305,000 | Bundesobligation, 3.500%, due 10/09/09 | 6,166,436 | ||||||||
| EUR 1,255,000 | Bundesrepub. Deutschland, 4.250%, due 07/04/17 | 1,823,009 | ||||||||
| CAD 230,000 | Canada Government International Bond, 3.750%, due 06/01/08 | 242,758 | ||||||||
| CAD 230,000 | Canadian Government International Bond, 5.750%, due 06/01/33 | 294,241 | ||||||||
| EUR 930,000 | France Government International Bond OAT, 3.250%, due 04/25/16 | 1,249,398 | ||||||||
| EUR 915,000 | Italy Buoni Poliennali Del Tesoro, 3.750%, due 08/01/16 | 1,263,266 | ||||||||
| JPY 260,500,000 | Japan Government Five Year Bond, 1.500%, due 06/20/12 | 2,302,713 | ||||||||
| JPY 188,400,000 | Japan Government International Bond, 1.700%, due 03/20/17 | 1,652,722 | ||||||||
| MXN 5,700,000 | Mexican Bonos, 8.000%, due 12/17/15 | 538,460 | ||||||||
| GBP 772,000 | United Kingdom Gilt Bond, 4.750%, due 06/07/10 | 1,594,741 | ||||||||
| UYU 6,067,000 | X | Uruguay Government International Bond, 4.250%, due 04/05/27 | 280,969 | |||||||
| Total Other Bonds (Cost $16,244,949) | 17,408,713 | |||||||||
218
Table of Contents
| No. of | ||||||||||
| Contracts | Value | |||||||||
| PURCHASED OPTIONS: 0.1% | ||||||||||
| Purchased Options: 0.1% | ||||||||||
| 8 | Call Option CME 90-Day Eurodollar Future 06/08 Strike @ $95.00 - Exp 06/16/08 | $ | 13,100 | |||||||
| 11 | Call Option CME 90-Day Eurodollar Future 09/08 Strike @ $95.00 - Exp 09/15/08 | 20,488 | ||||||||
| Total Purchased Options (Cost $26,210) | 33,588 | |||||||||
| Total Long-Term Investments (Cost $28,677,880) | 29,921,855 | |||||||||
| Shares | Value | |||||||||
| SHORT-TERM INVESTMENTS: 8.0% | ||||||||||
| Mutual Fund: 6.5% | ||||||||||
| 2,000,000 | **,S | ING Institutional Prime Money Market Fund | $ | 2,000,000 | ||||||
| Total Mutual Fund (Cost $2,000,000) | 2,000,000 | |||||||||
| Principal | ||||||||||
| Amount | Value | |||||||||
| Foreign Government Securities: 0.3% | ||||||||||
| CAD 100,000 | Z | Canadian Treasury Bill, 4.220%, due 03/06/08 | $ | 104,353 | ||||||
| Total Foreign Government Securities (Cost $98,492) | 104,353 | |||||||||
| Repurchase Agreement: 1.2% | ||||||||||
| $ | 370,000 | Morgan Stanley Repurchase Agreement dated 10/31/07, 4.780%, due 11/01/07, $370,049 to be received upon repurchase (Collateralized by $380,000 Federal Home Loan Mortgage Corporation, 3.920%, Market Value plus accrued interest $380,180, due 07/08/10) | 370,000 | |||||||
| Total Repurchase Agreement (Cost $370,000) | 370,000 | |||||||||
| Total Short-Term Investments (Cost $2,468,492) | 2,474,353 | |||||||||
Total Investments in Securities (Cost $31,146,372)* | 105.0 | % | $ | 32,396,208 | ||||||||
Other Assets and Liabilities-Net | (5.0 | ) | (1,538,775 | ) | ||||||||
Net Assets | 100.0 | % | $ | 30,857,433 | ||||||||
| @@ | Foreign Issuer | |
| # | Securities with purchases pursuant to Rule 144A or section 4(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise footnoted, these securities have been determined to be liquid under the guidelines established by the Funds’ Board of Directors/Trustees. | |
| C | Bond may be called prior to maturity date. | |
| W | When-issued or delayed delivery security | |
| S | All or a portion of this security is segregated for certain derivatives, when-issued or delayed delivery securities and forward currency exchange contracts. | |
| ** | Investment in affiliate | |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. | |
| Z | Indicates Zero Coupon Bond; rate shown reflects current effective yield. | |
| BRL | Brazilian Real | |
| CAD | Canadian Dollar | |
| EUR | EU Euro | |
| GBP | British Pound | |
| JPY | Japanese Yen | |
| MXN | Mexican Peso | |
| * | Cost for federal income tax purposes is $31,146,951. | |
| Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 1,272,433 | ||
| Gross Unrealized Depreciation | (23,176 | ) | ||
| Net Unrealized Appreciation | $ | 1,249,257 | ||
219
Table of Contents
At October 31, 2007 the following forward currency contracts were outstanding for the ING Global Bond Fund:
| In | Unrealized | |||||||||||||||||||||||
| Settlement | Exchange | USD | Appreciation/ | |||||||||||||||||||||
| Currency | Buy/Sell | Date | For | Equivalent | Value | (Depreciation) | ||||||||||||||||||
| Australia Dollars AUD 172,817 | Buy | 11/30/07 | 154,800 USD | — | $ | 160,693 | $ | 5,893 | ||||||||||||||||
| Australia Dollars AUD 333,043 | Buy | 11/30/07 | 305,000 USD | — | 309,678 | 4,678 | ||||||||||||||||||
| Switzerland Francs CHF 250,092 | Buy | 11/30/07 | 214,424 USD | — | 216,356 | 1,932 | ||||||||||||||||||
| Switzerland Francs CHF 697,358 | Buy | 11/30/07 | 598,000 USD | — | 603,288 | 5,288 | ||||||||||||||||||
| Denmark Kroner DKK 790,000 | Buy | 11/30/07 | 152,964 USD | — | 153,602 | 638 | ||||||||||||||||||
| Japanese Yen JPY 76,038,438 | Buy | 11/30/07 | 662,500 USD | — | 661,460 | (1,041 | ) | |||||||||||||||||
| Japanese Yen JPY 76,050,363 | Buy | 11/30/07 | 662,500 USD | — | 661,564 | (936 | ) | |||||||||||||||||
| Korea (South) Won KRW 277,474,680 | Buy | 11/15/07 | 303,450 USD | — | 308,280 | 4,830 | ||||||||||||||||||
| New Zealand Dollars NZD 235,000 | Buy | 11/30/07 | 178,296 USD | — | 180,675 | 2,378 | ||||||||||||||||||
| Poland Zlotych PLN 388,822 | Buy | 11/15/07 | 146,500 USD | — | 155,386 | 8,886 | ||||||||||||||||||
| Sweden Kronor SEK 3,624,584 | Buy | 11/15/07 | 565,559 USD | — | 570,763 | 5,204 | ||||||||||||||||||
| $ | 37,750 | |||||||||||||||||||||||
| Australia Dollars AUD 323,896 | Sell | 11/15/07 | 385,000 NZD | 296,456 | $ | 301,425 | $ | (4,970 | ) | |||||||||||||||
| Switzerland Francs CHF 250,092 | Sell | 11/30/07 | 216,000 USD | — | 216,356 | (356 | ) | |||||||||||||||||
| British Pound Sterling GBP 285,000 | Sell | 12/14/07 | 587,313 USD | — | 591,760 | (4,447 | ) | |||||||||||||||||
| British Pound Sterling GBP 148,756 | Sell | 12/14/07 | 307,000 USD | — | 308,871 | (1,871 | ) | |||||||||||||||||
| Japanese Yen JPY 59,785,420 | Sell | 11/30/07 | 512,082 USD | — | 520,075 | (7,991 | ) | |||||||||||||||||
| Norway Krone NOK 1,642,164 | Sell | 11/30/07 | 304,000 USD | — | 305,834 | (1,834 | ) | |||||||||||||||||
| New Zealand Dollars NZD 385,000 | Sell | 11/15/07 | 326,505 AUD | 303,853 | 296,456 | 7,397 | ||||||||||||||||||
| New Zealand Dollars NZD 235,000 | Sell | 11/30/07 | 179,080 USD | — | 180,675 | (1,594 | ) | |||||||||||||||||
| New Zealand Dollars NZD 360,777 | Sell | 11/30/07 | 268,200 USD | — | 277,376 | (9,176 | ) | |||||||||||||||||
| Sweden Kronor SEK 1,868,584 | Sell | 11/15/07 | 289,000 USD | — | 294,246 | (5,246 | ) | |||||||||||||||||
| Sweden Kronor SEK 2,495,095 | Sell | 11/30/07 | 389,000 USD | — | 393,003 | (4,003 | ) | |||||||||||||||||
| Sweden Kronor SEK 1,756,000 | Sell | 11/15/07 | 273,760 USD | — | 276,517 | (2,757 | ) | |||||||||||||||||
| $ | (36,848 | ) | ||||||||||||||||||||||
ING Global Bond Fund Open Futures Contracts on October 31, 2007
| Number | Unrealized | |||||||||||||||
| of | Notional | Expiration | Appreciation/ | |||||||||||||
| Contract Description | Contracts | Market Value($) | Date | (Depreciation) | ||||||||||||
Long Contracts | ||||||||||||||||
| 90-Day Eurodollar | 13 | 3,103,913 | 03/17/08 | $ | 9,164 | |||||||||||
| 90-Day Eurodollar | 14 | 3,349,150 | 09/15/08 | (1,082 | ) | |||||||||||
| Euro-Bund | 11 | 1,805,794 | 12/06/07 | (23,892 | ) | |||||||||||
| Euro-Schatz | 27 | 4,036,605 | 12/06/07 | (2,557 | ) | |||||||||||
| Long Gilt | 6 | 1,338,656 | 12/27/07 | (762 | ) | |||||||||||
| U.S. Dollar Index | 25 | 1,911,500 | 12/17/07 | (58,763 | ) | |||||||||||
| U.S. Treasury 2-Year Note | 31 | 6,420,391 | 12/31/07 | 9,521 | ||||||||||||
| U.S. Treasury 5-Year Note | 5 | 536,719 | 12/31/07 | 613 | ||||||||||||
| $ | (67,758 | ) | ||||||||||||||
Short Contracts | ||||||||||||||||
| 90-Day Eurodollar | 14 | (3,341,100 | ) | 09/14/09 | $ | (1,422 | ) | |||||||||
| Fed Fund 30-Day | 3 | (1,196,283 | ) | 03/31/08 | (1,539 | ) | ||||||||||
| Fed Fund 30-Day | 3 | (1,196,908 | ) | 04/30/08 | (1,890 | ) | ||||||||||
| Fed Fund 30-Day | 2 | (798,397 | ) | 05/30/08 | (1,730 | ) | ||||||||||
| U.S. Treasury Long Bond | 6 | (675,563 | ) | 12/19/07 | (390 | ) | ||||||||||
| $ | (6,971 | ) | ||||||||||||||
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ING Global Bond Fund Credit Default Swap Agreements Outstanding on October 31, 2007:
| (Pay)/Receive | Unrealized | |||||||||||||||||||||||
| Buy/Sell | Fixed Rate | Termination | Notional | Appreciation/ | ||||||||||||||||||||
| Counterparty | Reference Entity/Obligation | Protection | (%) | Date | Amount | (Depreciation) | ||||||||||||||||||
| UBS AG | Australia & NZ Banking Group 4.450%, 02/05/15 | Buy | (0.350) | 09/20/17 | USD | 50,000 | $ | (176 | ) | |||||||||||||||
| Citibank N.A., New York | Bank of Scotland 5.125%, 12/05/13 | Buy | (0.660) | 09/20/17 | USD | 100,000 | 877 | |||||||||||||||||
| UBS AG | Bank of Scotland 5.125%, 12/05/13 | Buy | (0.410) | 09/20/17 | USD | 50,000 | 1,422 | |||||||||||||||||
| Citibank N.A., New York | BNP Paribas 5.250%, 12/17/12 | Buy | (0.520) | 09/20/17 | USD | 100,000 | (41 | ) | ||||||||||||||||
| UBS AG | CDX.EM.7 Index | Buy | (1.250) | 06/20/12 | USD | 1,000,000 | (23,637 | ) | ||||||||||||||||
| UBS AG | CDX.EM.7 Index | Buy | (1.250) | 06/20/12 | USD | 500,000 | (19,301 | ) | ||||||||||||||||
| Lehman Brothers Special Financing Inc. | CDX.NA.HY.8 (15-25% Tranche) Index | Buy | (4.350) | 06/20/12 | USD | 500,000 | (1,478 | ) | ||||||||||||||||
| Barclays Bank PLC | Federative Republic of Brazil 12.250%, 03/06/30 | Sell | 0.240 | 06/20/08 | USD | 2,850,000 | 1,328 | |||||||||||||||||
| Barclays Bank PLC | Federative Republic of Brazil 12.250%, 03/06/30 | Buy | (0.725) | 06/20/12 | USD | 1,000,000 | (102 | ) | ||||||||||||||||
| Citibank N.A., New York | Federative Republic of Brazil 12.250%, 03/06/30 | Sell | 0.240 | 07/20/08 | USD | 1,200,000 | (765 | ) | ||||||||||||||||
| Citibank N.A., New York | Federative Republic of Brazil 12.250%, 03/06/30 | Buy | (0.740) | 07/20/12 | USD | 300,000 | 697 | |||||||||||||||||
| UBS AG | HSBC Bank PLC 4.250%, 03/18/16 | Buy | (0.400) | 09/20/17 | USD | 50,000 | 588 | |||||||||||||||||
| UBS AG | Royal Bank of Scotland PLC 6.000%, 05/10/13 | Buy | (0.400) | 09/20/17 | USD | 50,000 | 924 | |||||||||||||||||
| Citibank N.A., New York | Simon Property Group LP 6.350%, 08/28/12 | Buy | (0.380) | 09/20/12 | USD | 500,000 | 2,037 | |||||||||||||||||
| Citibank N.A., New York | Societe Generale 6.625%, 04/27/15 | Buy | (0.510) | 09/20/17 | USD | 100,000 | (285 | ) | ||||||||||||||||
| UBS AG | Societe Generale 6.625%, 04/27/15 | Buy | (0.380) | 09/20/17 | USD | 50,000 | 377 | |||||||||||||||||
| Citibank N.A., New York | Standard Chartered Bank 3.625%, 02/03/17 | Buy | (0.670) | 09/20/17 | USD | 100,000 | 272 | |||||||||||||||||
| UBS AG | Standard Chartered Bank 3.625%, 02/03/17 | Buy | (0.420) | 09/20/17 | USD | 50,000 | 1,123 | |||||||||||||||||
| Citibank N.A., New York | United Mexican States 7.500%, 04/08/33 | Sell | 0.160 | 07/20/08 | USD | 1,200,000 | 65 | |||||||||||||||||
| Citibank N.A., New York | United Mexican States 7.500%, 04/08/33 | Buy | (0.355) | 07/20/12 | USD | 150,000 | 481 | |||||||||||||||||
| UBS AG | Westpac Banking Corp. 5.875%, 04/29/18 | Buy | (0.350) | 09/20/17 | USD | 50,000 | 425 | |||||||||||||||||
| $ | (35,169 | ) | ||||||||||||||||||||||
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| Shares | Value | |||||||||
| AFFILIATED INVESTMENT COMPANIES: 99.9% | ||||||||||
| 751,911 | ING Emerging Countries Fund — Class I | $ | 31,302,060 | |||||||
| 4,475,083 | ING Foreign Fund — Class I | 106,999,220 | ||||||||
| 8,454,731 | ING Index Plus International Equity Fund — Class I | 118,873,511 | ||||||||
| 9,457,521 | ING International Capital Appreciation Fund — Class I | 140,917,070 | �� | |||||||
| 5,257,569 | ING International Equity Dividend Fund — Class I | 55,572,506 | ||||||||
| 1,267,464 | ING International Real Estate Fund — Class I | 18,479,626 | ||||||||
| 1,011,616 | ING International SmallCap Fund — Class I | 67,495,061 | ||||||||
| 3,745,195 | ING International Value Choice Fund — Class I | 55,878,311 | ||||||||
Total Investments in Securities (Cost $480,275,097)* | 99.9 | % | $ | 595,517,365 | ||||||||
Other Assets and Liabilities-Net | 0.1 | 638,063 | ||||||||||
Net Assets | 100.0 | % | $ | 596,155,428 | ||||||||
| * | Cost for federal income tax purposes is $481,868,347. Net unrealized appreciation consists of: |
| Gross Unrealized Appreciation | $ | 113,649,018 | ||
| Gross Unrealized Depreciation | — | |||
| Net Unrealized Appreciation | $ | 113,649,018 | ||
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Table of Contents
A special meeting of shareholders of ING Mutual Funds was held October 25, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| 1 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING Global Real Estate Fund | 1 | 18,535,843 | 2,363,399 | 722,029 | 18,759,281 | 40,380,552 | ||||||||||||||||||
| * | The Shareholder Meeting for ING Global Real Estate Fund was adjourned to November 21, 2007. |
Matters:
| 1 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING Global Equity Dividend Fund | 1 | 7,732,016 | 515,252 | 293,810 | 7,471,707 | 16,012,785 | ||||||||||||||||||
| * | The Shareholder Meeting for ING Global Equity Dividend Fund was adjourned to November 21, 2007. |
Matters:
| 1 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
| 2 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING International Growth Opportunities Fund | 1 | 1,968,312 | 156,914 | 80,084 | 2,628,297 | 4,833,607 | ||||||||||||||||||
| ING International Growth Opportunities Fund | 2 | 1,971,624 | 154,901 | 78,785 | 2,628,297 | 4,833,607 | ||||||||||||||||||
| * | The Shareholder Meeting for ING International Growth Opportunities Fund was adjourned to November 21, 2007. |
Matters:
| 1 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
| 2 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING Russia Fund | 1 | 3,697,982 | 494,701 | 115,550 | 4,474,050 | 8,782,284 | ||||||||||||||||||
| ING Russia Fund | 2 | 3,661,594 | 509,252 | 137,388 | 4,474,050 | 8,782,284 | ||||||||||||||||||
| * | The Shareholder Meeting for ING Russia Fund was adjourned to November 21, 2007. |
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Matters:
| 1 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING International SmallCap Fund | 1 | 3,395,099 | 4,214,914 | 174,367 | 3,480,575 | 11,264,954 | ||||||||||||||||||
| * | The Shareholder Meeting for ING International SmallCap Fund was adjourned to November 21, 2007. |
Matters:
| 1 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING Emerging Countries Fund | 1 | 2,760,985 | 245,373 | 122,734 | 2,113,993 | 5,243,085 | ||||||||||||||||||
| * | The Shareholder Meeting for ING Emerging Countries Fund was adjourned to November 21, 2007. |
A special meeting of shareholders of ING Mayflower Trust was held October 30, 2007, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
A brief description of each matter voted upon as well as the results are outlined below:
Matters:
| 1 | To approve a “Manager-of-Managers” arrangement for certain Funds to permit the Funds’ investment adviser, subject to prior approval by the Board, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Funds’ shareholders. |
| 2 | To approve the conversion of certain Funds’ investment objectives from fundamental to non-fundamental. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING International Value Fund | 1 | 45,655,311 | 10,044,203 | 1,316,795 | 53,677,313 | 110,693,623 | ||||||||||||||||||
| ING International Value Fund | 2 | 45,387,231 | 10,038,700 | 1,590,379 | 53,677,313 | 110,693,623 | ||||||||||||||||||
| * | The Shareholder Meeting for ING International Value Fund was adjourned to November 21, 2007. |
Matters:
| 1 | To approve an Agreement and Plan of Reorganization by and among ING International Equity Fund and ING Index Plus International Equity Fund providing for the reorganization of ING International Equity Fund with and into ING Index Plus International Equity Fund. |
Results:
| Shares | ||||||||||||||||||||||||
| Voted | ||||||||||||||||||||||||
| Shares | Against or | Shares | Broker | Total Shares | ||||||||||||||||||||
| Proposal | Voted For | Withheld | Abstained | Non-Vote | Voted | |||||||||||||||||||
| ING International Equity Fund | 1 | 3,304,929 | 128,053 | 148,345 | — | 3,581,327 | ||||||||||||||||||
| * | The Shareholder Meeting for ING International Equity Fund was adjourned to November 8, 2007. |
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The business and affairs of the Registrants are managed under the direction of the Board. A Trustee who is not an interested person of the Registrants, as defined in the 1940 Act, is an independent trustee (“Independent Trustee”). The Trustees and Officers of the Trusts are listed below. The Statement of Additional Information includes additional information about trustees of the Registrants and is available, without charge, upon request at (800) 992-0180.
| Principal | ||||||
| Position(s) | Term of Office | Occupation(s) | ||||
| held with | and Length of | during the Past | ||||
| Name, Address and Age | the Registrants | Time Served(1) | Five Years | |||
Independent Trustees: | ||||||
| Colleen D. Baldwin(2) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 47 | Trustee | November 2007 — Present | Consultant (January 2005 to Present). Formerly, Chief Operating Officer, Ivy Asset Management Group (April 2002 — October 2004). Chief Operating Officer, AIG Global Investment Group. (May 1995 — January 2002). | |||
| John V. Boyer 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 54 | Trustee | January 2005 — Present | Consultant (July 2007 — Present). Formerly, President and Chief Executive Officer, Franklin and Eleanor Roosevelt Institute (March 2006 — July 2007), and Executive Director, The Mark Twain House & Museum(2) (September 1989 — November 2005). | |||
| Patricia W. Chadwick(4) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 59 | Trustee | January 2006 — Present | Consultant and President of self- owned company, Ravengate Partners LLC (January 2000 — Present). | |||
| Peter S. Drotch(2) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 65 | Trustee | November 2007 — Present | Retired partner. PricewaterhouseCoopers. | |||
| J. Michael Earley 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 62 | Trustee | February 2002 — Present (ING Mayflower Trust) February 2001 — Present (ING Mutual Funds) | President, Chief Executive Officer and Director, Bankers Trust Company, N.A., Des Moines (June 1992 — Present). | |||
| Patrick W. Kenny 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 64 | Trustee | January 2005 — Present | President and Chief Executive Officer, International Insurance Society (June 2001 — Present). | |||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| Number of | ||||
| Funds | ||||
| in Fund | ||||
| Complex | ||||
| Overseen | Other Directorships | |||
| Name, Address and Age | by Trustee | held by Trustee | ||
Independent Trustees: | ||||
| Colleen D. Baldwin(2) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 47 | 181 | None | ||
| John V. Boyer 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 54 | 181 | None | ||
| Patricia W. Chadwick(4) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 59 | 181 | Wisconsin Energy (June 2006 — Present). | ||
| Peter S. Drotch(2) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 65 | 181 | First Marblehead Corporation (October 2003 — Present); BlackRock Funds/State Street Research Funds, Trustee (February 2004 — January 2007); Tufts Health Plan, Director (June 2006 — Present); and University of Connecticut, Trustee (November 2004 — Present). | ||
| J. Michael Earley 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 62 | 181 | Midamerica Financial Corporation (December 2002 — Present). | ||
| Patrick W. Kenny 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 64 | 181 | Assured Guaranty Ltd. (April 2004 — Present); and Odyssey Reinsurance Holdings (November 2006 — Present). |
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Table of Contents
| Principal | ||||||
| Position(s) | Term of Office | Occupation(s) | ||||
| held with | and Length of | during the Past | ||||
| Name, Address and Age | the Registrants | Time Served(1) | Five Years | |||
| Sheryl K. Pressler(4) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 57 | Trustee | January 2006 — Present | Consultant (May 2001 — Present). | |||
| David W.C. Putnam 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 68 | Trustee | October 1999 — Present | Chair, Board of Directors and President, F.L. Putnam Securities Company, Inc. (June 1978 — Present). | |||
| Roger B. Vincent 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 62 | Trustee | February 2001 — Present (ING Mayflower Trust) February 2002 — Present (ING Mutual Funds) | President, Springwell Corporation (March 1989 — Present). | |||
Trustees who are “Interested Persons”: | ||||||
| Robert W. Crispin(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 61 | Trustee | November 2007 — Present | Chairman and Chief Executive Officer, ING Investment Management Co. (June 2001 — Present). | |||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| Number of | ||||
| Funds | ||||
| in Fund | ||||
| Complex | ||||
| Overseen | Other Directorships | |||
| Name, Address and Age | by Trustee | held by Trustee | ||
| Sheryl K. Pressler(4) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 57 | 181 | Stillwater Mining Company (May 2002 — Present); California HealthCare Foundation (June 1999 — Present); and Romanian-American Enterprise Fund (February 2004 — Present). | ||
| David W.C. Putnam 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 68 | 181 | Principled Equity Market Trust (December 1996 — Present); and Asian American Bank and Trust Company (June 1993 — Present). | ||
| Roger B. Vincent 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 62 | 181 | UGI Corporation (February 2006 — Present); and UGI Utilities, Inc. (February 2006 — Present). | ||
Trustees who are “Interested Persons”: | ||||
| Robert W. Crispin(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 61 | 181 | ING Life Insurance and Annuity Company (May 2006 — Present); ING USA Annuity and Life Insurance Company (May 2006 — Present); Midwestern United Life Insurance Company (May 2006 — Present); ReliaStar Life Insurance Company (May 2006 — Present); Security Life of Denver Insurance Company (May 2006 — Present); Belair Insurance Company Inc. (August 2005 — Present); The Nordic Insurance Company of Canada (February 2005 — Present); Trafalgar Insurance Company of Canada (February 2005 — Present); ING Novex Insurance Company of Canada (February 2005 — Present); Allianz Insurance Company of Canada (February 2005 — Present); ING Canada Inc. (December 2004 — Present); and ING Foundation (March 2004 — Present). | ||
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Table of Contents
| Principal | ||||||
| Position(s) | Term of Office | Occupation(s) | ||||
| held with | and Length of | during the Past | ||||
| Name, Address and Age | the Registrants | Time Served(1) | Five Years | |||
| Shaun P. Mathews(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 52 | Trustee | November 2007 — Present | President and Chief Executive Officer, ING Investments, LLC (December 2006 — Present), and Head of ING USFS Mutual Funds and Investment Products (October 2004 — Present). Formerly, CMO, ING USFS (April 2002 — October 2004), and Head of Rollover/Payout (October 2001 — December 2003). |
[Additional columns below]
[Continued from above table, first column(s) repeated]
| Number of | ||||
| Funds | ||||
| in Fund | ||||
| Complex | ||||
| Overseen | Other Directorships | |||
| Name, Address and Age | by Trustee | held by Trustee | ||
| Shaun P. Mathews(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 52 | 181 | Mark Twain House & Museum (September 2002 — Present); Connecticut Forum (May 2002 — Present); Capital Community College Foundation (February 2002 — Present); ING Services Holding Company, Inc. (May 2000 — Present); Southland Life Insurance Company (June 2002 — Present); and ING Capital Corporation, LLC, ING Funds Distributor, LLC, ING Funds Services, LLC, ING Investments, LLC and ING Pilgrim Funding, Inc. (March 2006 — Present). |
| (1) | Trustees serve until their successors are duly elected and qualified, subject to the Board’s retirement policy which states that each duly elected or appointed Trustee who is not an “interested person” of the Fund, as defined in the 1940 Act (“Independent Trustees”), shall retire from service as a Trustee at the conclusion of the first regularly scheduled meeting of the Board that is held after the Trustee reaches the age of 70. A unanimous vote of the Board may extend the retirement date of a 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 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) | Ms. Baldwin and Messrs. Drotch, Crispin and Mathews each commenced services as Trustees of ING Mutual Funds on November 27, 2007. Ms. Baldwin and Messrs. Drotch, Crispin and Mathews each commenced services as Trustee of ING Mayflower Trust on November 27, 2007. |
| (3) | Shaun Mathews, President, ING USFS Mutual Funds and Investment Products, has held a seat on the Board of Directors of The Mark Twain House & Museum since September 19, 2002. ING Groep N.V. makes non-material, charitable contributions to The Mark Twain House & Museum. |
| (4) | Mses. Chadwick and Pressler each commenced services as Trustee on January 18, 2006. |
| (5) | Messrs. Crispin and Mathews are deemed to be “interested persons” of the Registrants as defined in the 1940 Act because of their relationship with ING Groep, N.V., the parent corporation of the Adviser, ING Investments, LLC and the Distributor, ING Funds Distributor, LLC. |
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| Term of Office | ||||||
| Position(s) Held | and Length of | Principal Occupation(s) | ||||
| Name, Address and Age | with the Registrants | Time Served(1) | during the Past Five Years | |||
Officers: | ||||||
| Shaun P. Mathews(5) 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 52 | President and Chief Executive Officer | November 2006 — Present | President and Chief Executive Officer, ING Investments, LLC(2) and ING Funds Services, LLC(3) (December 2006 — Present); and Head of ING USFS Mutual Funds and Investment Products (October 2004 — Present). Formerly, CMO, ING USFS (April 2002 — October 2004); and Head of Rollover/ Payout (October 2001 — December 2003). | |||
| Michael J. Roland 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 49 | Executive Vice President | February 2002 — Present | Head of Mutual Fund Platform (February 2007 — Present); and Executive Vice President, ING Investments, LLC(2) and ING Funds Services, LLC(3) (December 2001 — Present). Formerly, Head of Product Management (January 2005 — January 2007); Chief Compliance Officer, ING Investments, LLC(2) and Directed Services, LLC(4) (October 2004 — December 2005); and Chief Financial Officer and Treasurer, ING Investments, LLC(2) (December 2001 — March 2005). | |||
| Stanley D. Vyner 230 Park Ave. New York, New York 10169 Age: 57 | Executive Vice President | May 1999 — Present (ING Mutual Funds) November 1999 — Present (ING Mayflower Trust) | Executive Vice President, ING Investments, LLC(2) (July 2000 — Present); and Chief Investment Risk Officer, ING Investments, LLC(2) (January 2003 — Present). Formerly, Chief Investment Officer of International Investments (August 2000 — January 2003). | |||
| Joseph M. O’Donnell 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 53 | Executive Vice President and Chief Compliance Officer | March 2006 — Present November 2004 — Present | Chief Compliance Officer of the ING Funds (November 2004 — Present); ING Investments, LLC(2) and Directed Services, LLC(4) (March 2006 — Present); and Executive Vice President of the ING Funds (March 2006 — Present). Formerly, Chief Compliance Officer of ING Life Insurance and Annuity Company (March 2006 — December 2006); Vice President, Chief Legal Counsel, Chief Compliance Officer and Secretary of Atlas Securities, Inc., Atlas Advisers, Inc. and Atlas Funds (October 2001 — October 2004). | |||
| Todd Modic 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 40 | Senior Vice President, Chief/Principal Financial Officer and Assistant Secretary | March 2005 — Present | Senior Vice President, ING Funds Services, LLC(3) (April 2005 — Present). Formerly, Vice President, ING Funds Services, LLC(3) (September 2002 — March 2005); and Director of Financial Reporting, ING Investments, LLC(2) (March 2001 — September 2002). | |||
| Kimberly A. Anderson 7337 E. Doubletree Ranch Rd. Scottsdale, AZ 85258 Age: 43 | Senior Vice President | November 2003 — Present | Senior Vice President, ING Investments, LLC(2) (October 2003 — Present). Formerly, Vice President and Assistant Secretary, ING Investments, LLC(2) (January 2001 — October 2003). | |||
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| Term of Office | ||||||
| Position(s) Held | and Length of | Principal Occupation(s) | ||||
| Name, Address and Age | with the Registrants | Time Served(1) | during the Past Five Years | |||
| Ernest J. C’DeBaca 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 38 | Senior Vice President | May 2006 — Present | Senior Vice President, ING Investments, LLC(2) (December 2006 — Present); and ING Funds Services, LLC (3) (April 2006 — Present). Formerly, Counsel, ING Americas, U.S. Legal Services (January 2004 — March 2006); and Attorney-Adviser, U.S. Securities and Exchange Commission (May 2001 — December 2003). | |||
| Robert Terris 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 37 | Senior Vice President | May 2006 — Present | Senior Vice President, Head of Division Operations, ING Funds (May 2006 — Present); and Vice President, Head of Division Operations, ING Funds Services, LLC(3) (March 2006 — Present). Formerly, Vice President of Administration, ING Funds Services, LLC (3) (October 2001 — March 2006). | |||
| Robyn L. Ichilov 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 40 | Vice President and Treasurer | May 1999 — Present (ING Mutual Funds) November 1999 — Present (ING Mayflower Trust) | Vice President and Treasurer, ING Funds Services, LLC(3) (October 2001 — Present) and ING Investments, LLC(2) (August 1997 — Present). | |||
| Lauren D. Bensinger 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 53 | Vice President | May 1998 — Present for IIF February 2003 — Present | Vice President and Chief Compliance Officer, ING Funds Distributor, LLC(5) (July 1995 — Present); and Vice President, ING Investments, LLC(2) (February 1996 — Present); and Director of Compliance, ING Investments, LLC(2) (October 2004 — Present). Formerly, Chief Compliance Officer, ING Investments, LLC(2) (October 2001 — October 2004). | |||
| Maria M. Anderson 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 49 | Vice President | September 2004 — Present | Vice President, ING Funds Services, LLC (3) (September 2004 — Present). Formerly, Assistant Vice President, ING Funds Services, LLC(3) (October 2001 — September 2004); and Manager of Fund Accounting and Fund Compliance, ING Investments, LLC(2) (September 1999 — October 2001). | |||
| William Evans 10 State House Square Harford, CT 06103 Age: 35 | Vice President | November 2007 — Present | Vice President, Head of Mutual Fund Advisory Group (April 2007 — Present), Vice President,- U.S. Mutual Funds and Investment Products (May 2005 — April 2007), Senior Fund Analyst, U.S. Mutual Funds and Investment Products (May 2002 — May 2005). | |||
| Denise Lewis 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 44 | Vice President | January 2007 — Present | Vice President, ING Funds Services, LLC (3) (December 2006 — Present). Formerly, Senior Vice President, UMB Investment Services Group, LLC (November 2003 — December 2006); and Vice President, Wells Fargo Funds Management, LLC (December 2000 — August 2003). | |||
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| Term of Office | ||||||
| Position(s) Held | and Length of | Principal Occupation(s) | ||||
| Name, Address and Age | with the Registrants | Time Served(1) | during the Past Five Years | |||
| Kimberly K. Palmer 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 50 | Vice President | March 2006 — Present | Vice President, ING Funds Services, LLC (3) (March 2006 — Present). Formerly, Assistant Vice President, ING Funds Services, LLC(3) (August 2004 — March 2006); Manager, Registration Statements, ING Funds Services, LLC(3) (May 2003 — August 2004); Associate Partner, AMVESCAP PLC (October 2000 — May 2003); and Director of Federal Filings and Blue Sky Filings, INVESCO Funds Group, Inc. (March 1994 — May 2003). | |||
| Susan P. Kinens 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 30 | Assistant Vice President | February 2003 — Present | Assistant Vice President, ING Funds Services, LLC(3) (December 2002 — Present); and has held various other positions with ING Funds Services, LLC (3) for more than the last five years. | |||
| Huey P. Falgout, Jr. 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 44 | Secretary | August 2003 — Present | Chief Counsel, ING Americas, U.S. Legal Services (September 2003 — Present). Formerly, Counsel, ING Americas, U.S. Legal Services (November 2002 — September 2003); and Associate General Counsel of AIG American General (January 1999 — November 2002). | |||
| Theresa K. Kelety 7337 E. Doubletree Ranch Rd. Scottsdale, Arizona 85258 Age: 44 | Assistant Secretary | August 2003 — Present | Counsel, ING Americas, U.S. Legal Services (April 2003 — Present). Formerly, Senior Associate with Shearman & Sterling (February 2000 — April 2003). | |||
| (1) | The officers hold office until the next annual meeting of the Trustees and until their successors have been elected and qualified. |
| (2) | 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. |
| (3) | 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. |
| (4) | Directed Services, LLC is the successor in interest to Directed Services, Inc. |
| (5) | 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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Dividends paid during the year ended October 31, 2007 were as follows:
| Fund Name | Type | Per Share Amount | |||||||
| ING Global Equity Dividend Fund | |||||||||
| Class A | NII | $ | 0.5500 | ||||||
| Class B | NII | $ | 0.4316 | ||||||
| Class C | NII | $ | 0.4368 | ||||||
| Class I | NII | $ | 0.1261 | ||||||
| Class O | NII | $ | 0.5657 | ||||||
| All Classes, except I* | STCG | $ | 0.5116 | ||||||
| All Classes, except I* | LTCG | $ | 0.2390 | ||||||
| ING Global Natural Resources Fund | |||||||||
| Class A | NII | $ | 0.2598 | ||||||
| All Classes | LTCG | $ | 0.3538 | ||||||
| ING Global Real Estate Fund | |||||||||
| Class A | NII | $ | 1.0822 | ||||||
| Class B | NII | $ | 0.9536 | ||||||
| Class C | NII | $ | 0.9520 | ||||||
| Class I | NII | $ | 1.1526 | ||||||
| Class O | NII | $ | 1.0993 | ||||||
| All Classes | STCG | $ | 0.0544 | ||||||
| All Classes | LTCG | $ | 0.2564 | ||||||
| ING Emerging Countries Fund | |||||||||
| Class A | NII | $ | 0.4341 | ||||||
| Class B | NII | $ | 0.1825 | ||||||
| Class C | NII | $ | 0.2481 | ||||||
| Class I | NII | $ | 0.5366 | ||||||
| Class M | NII | $ | 0.2827 | ||||||
| Class Q | NII | $ | 0.4461 | ||||||
| ING Foreign Fund | |||||||||
| All Classes | STCG | $ | 0.1910 | ||||||
| All Classes | LTCG | $ | 0.4902 | ||||||
| ING Greater China Fund | |||||||||
| Class A | NII | $ | 0.0582 | ||||||
| Class B | NII | $ | 0.0395 | ||||||
| Class C | NII | $ | 0.0271 | ||||||
| Class I | NII | $ | 0.0809 | ||||||
| All Classes | STCG | $ | 0.0001 | ||||||
| ING Index Plus International Equity Fund | |||||||||
| Class A | NII | $ | 0.0815 | ||||||
| Class B | NII | $ | 0.0583 | ||||||
| Class C | NII | $ | 0.0426 | ||||||
| Class I | NII | $ | 0.1201 | ||||||
| All Classes | STCG | $ | 0.2717 | ||||||
| ING International Capital Appreciation Fund | |||||||||
| Class A | NII | $ | 0.0545 | ||||||
| Class B | NII | $ | 0.0337 | ||||||
| Class C | NII | $ | 0.0039 | ||||||
| Class I | NII | $ | 0.0868 | ||||||
| All Classes | STCG | $ | 0.2548 | ||||||
| ING International Growth Opportunities Fund | |||||||||
| Class A | NII | $ | 0.1534 | ||||||
| Class B | NII | $ | 0.0516 | ||||||
| Class C | NII | $ | 0.0568 | ||||||
| Class I | NII | $ | 0.2064 | ||||||
| Class Q | NII | $ | 0.1777 | ||||||
| All Classes | STCG | $ | 0.1726 | ||||||
| All Classes | LTCG | $ | 0.9647 | ||||||
| ING International Real Estate Fund | |||||||||
| Class A | NII | $ | 0.3406 | ||||||
| Class B | NII | $ | 0.2645 | ||||||
| Class C | NII | $ | 0.2625 | ||||||
| Class I | NII | $ | 0.3665 | ||||||
| ING International SmallCap Fund | |||||||||
| Class A | NII | $ | 0.2812 | ||||||
| Class B | NII | $ | — | ||||||
| Class C | NII | $ | 0.0023 | ||||||
| Class I | NII | $ | 0.4771 | ||||||
| Class Q | NII | $ | 0.3380 | ||||||
| ING International Value Fund | |||||||||
| Class A | NII | $ | 0.1998 | ||||||
| Class B | NII | $ | 0.0315 | ||||||
| Class C | NII | $ | 0.0540 | ||||||
| Class I | NII | $ | 0.2786 | ||||||
| Class Q | NII | $ | 0.2209 | ||||||
| All Classes | STCG | $ | 0.3492 | ||||||
| All Classes | LTCG | $ | 1.7879 | ||||||
| ING International Value Choice Fund | |||||||||
| Class A | NII | $ | 0.0668 | ||||||
| Class B | NII | $ | — | ||||||
| Class C | NII | $ | — | ||||||
| Class I | NII | $ | 0.1001 | ||||||
| All Classes | STCG | $ | 0.1396 | ||||||
| All Classes | LTCG | $ | 0.0717 | ||||||
| ING Russia Fund | |||||||||
| Class A | LTCG | $ | 3.1171 | ||||||
| ING Emerging Markets Fixed Income Fund | |||||||||
| Class A | NII | $ | 0.6300 | ||||||
| Class B | NII | $ | 0.5528 | ||||||
| Class C | NII | $ | 0.5540 | ||||||
| Class I | NII | $ | 0.6109 | ||||||
| All Classes | STCG | $ | 0.0279 | ||||||
| ING Global Bond Fund | |||||||||
| Class A | NII | $ | 0.4314 | ||||||
| Class B | NII | $ | 0.3764 | ||||||
| Class C | NII | $ | 0.3542 | ||||||
| Class I | NII | $ | 0.4651 | ||||||
| All Classes | STCG | $ | 0.1721 | ||||||
| All Classes | LTCG | $ | 0.0032 | ||||||
| ING Diversified International Fund | |||||||||
| Class A | NII | $ | 0.0610 | ||||||
| Class B | NII | $ | 0.0080 | ||||||
| Class C | NII | $ | 0.0114 | ||||||
| Class I | NII | $ | 0.0769 | ||||||
| Class R | NII | $ | 0.0763 | ||||||
NII — Net investment income
| * | Class I commenced operations August 1, 2007. |
Of the ordinary distributions made during the year ended October 31, 2007, the following percentages qualify for the dividends received deduction (DRD) available to corporate shareholders:
| Global Equity Dividend | 18.85% | |
| Global Natural Resources | 16.37% | |
| International Growth Opportunities | 0.49% | |
| International Value Choice | 0.05% | |
| Global Bond | 0.35% |
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For the year ended October 31, 2007, the following are percentages of net investment 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 | 46.03% | |
| Global Natural Resources | 23.29% | |
| Emerging Countries | 64.35% | |
| Foreign | 100.00% | |
| Greater China | 36.80% | |
| Index Plus International Equity | 37.71% | |
| International Capital Appreciation | 24.50% | |
| International Growth Opportunities | 3.21% | |
| International Real Estate | 14.64% | |
| International SmallCap | 75.21% | |
| International Value | 79.56% | |
| International Value Choice | 69.71% | |
| Diversified International | 47.17% |
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 | 0.61% | |
| Global Natural Resources | 5.33% | |
| Emerging Countries | 3.14% | |
| Greater China | 0.62% | |
| Index Plus International Equity | 0.15% | |
| International Capital Appreciation | 1.08% | |
| International Growth Opportunities | 2.89% | |
| International Real Estate | 2.12% | |
| International SmallCap | 4.16% | |
| International Value | 1.05% | |
| International Value Choice | 4.82% | |
| Emerging Markets Fixed Income | 99.86% | |
| Global Bond | 76.16% |
Pursuant to Internal Revenue Code Section 871(k)(2), the Funds designate the following percentages of net investment income distributions as short-term capital gain dividends:
| Global Equity Dividend | 100.00% | |
| Foreign | 100.00% | |
| Greater China | 100.00% | |
| Index Plus International Equity | 100.00% | |
| International Capital Appreciation | 100.00% | |
| International Growth Opportunities | 100.00% | |
| International Value | 100.00% | |
| International Value Choice | 100.00% | |
| Emerging Markets Fixed Income | 100.00% | |
| Global Bond | 100.00% |
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, 2007:
| Foreign Taxes | Per Share | |||||||
| Paid | Amount | |||||||
| Global Equity Dividend | $ | 906,368 | $ | 0.0391 | ||||
| Disciplined International SmallCap | $ | 227,787 | $ | 0.0059 | ||||
| Emerging Countries | $ | 1,063,541 | $ | 0.1320 | ||||
| Greater China | $ | 103,213 | $ | 0.0269 | ||||
| Index Plus International Equity | $ | 212,057 | $ | 0.0243 | ||||
| International Capital Appreciation | $ | 136,492 | $ | 0.0138 | ||||
| International Equity Dividend | $ | 15,761 | $ | 0.0027 | ||||
| International Growth Opportunities | $ | 193,160 | $ | 0.0207 | ||||
| International Real Estate | $ | 340,126 | $ | 0.0094 | ||||
| International SmallCap | $ | 1,552,813 | $ | 0.0865 | ||||
| International Value | $ | 14,537,587 | $ | 0.0621 | ||||
| International Value Choice | $ | 208,235 | $ | 0.0362 | ||||
| International Value Opportunities | $ | 24,546 | $ | 0.0244 | ||||
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Listed below are the gross income earned and foreign taxes paid by country for each fund shown above. Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes.
Global Equity Dividend
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 1,097,374 | $ | — | ||||
| Belgium | 436,947 | 65,542 | ||||||
| Bermuda | 26,868 | — | ||||||
| Brazil | 304,303 | — | ||||||
| Canada | 1,218,495 | 182,418 | ||||||
| China | 137,143 | — | ||||||
| Denmark | 86,866 | 13,031 | ||||||
| European Community | 1,188 | — | ||||||
| France | 611,485 | 90,916 | ||||||
| Germany | 195,783 | 29,367 | ||||||
| Greece | 184,430 | — | ||||||
| Hong Kong | 139,725 | — | ||||||
| Hungary | 437,462 | — | ||||||
| Ireland | 131,018 | — | ||||||
| Israel | 135,547 | 27,469 | ||||||
| Italy | 1,547,931 | 225,483 | ||||||
| Luxembourg | 84,897 | 12,735 | ||||||
| Netherlands | 155,709 | 23,356 | ||||||
| New Zealand | 159,156 | 23,865 | ||||||
| Norway | 163,579 | 24,538 | ||||||
| Poland | 236,431 | 35,524 | ||||||
| Singapore | 139,030 | — | ||||||
| South Africa | 199,980 | — | ||||||
| South Korea | 354,211 | 58,445 | ||||||
| Sweden | 106,265 | 15,940 | ||||||
| Taiwan | 334,059 | 59,687 | ||||||
| Thailand | 180,522 | 18,052 | ||||||
| United Kingdom | 2,470,521 | — | ||||||
Subtotal | 11,276,925 | 906,368 | ||||||
| United States | 5,046,695 | — | ||||||
Total | $ | 16,323,620 | $ | 906,368 | ||||
Disciplined International SmallCap
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 478,065 | $ | — | ||||
| Belgium | 7,599 | 1,140 | ||||||
| Bermuda | 42,621 | — | ||||||
| Canada | 331,597 | 47,232 | ||||||
| Cayman Islands | 2,920 | — | ||||||
| China | 5,185 | — | ||||||
| Denmark | 59 | — | ||||||
| Euro | 4,030 | — | ||||||
| Finland | 13,323 | 1,998 | ||||||
| France | 403,797 | 56,321 | ||||||
| Germany | 467,416 | 23,848 | ||||||
| Greece | 48,591 | — | ||||||
| Hong Kong | 122,897 | — | ||||||
| Ireland | 12,063 | — | ||||||
| Italy | 170,752 | 23,095 | ||||||
| Japan | 340,995 | 23,812 | ||||||
| Netherlands | 106,846 | 16,027 | ||||||
| New Zealand | (24 | ) | — | |||||
| Norway | 45,391 | 4,193 | ||||||
| Papua New Guinea | 2,949 | — | ||||||
| Portugal | 1,155 | 115 | ||||||
| Singapore | 20,577 | — | ||||||
| South Korea | 19,718 | 2,716 | ||||||
| Spain | 114,691 | 15,150 | ||||||
| Sweden | 18,181 | 2,716 | ||||||
| Switzerland | 63,000 | 9,425 | ||||||
| United Kingdom | 962,946 | — | ||||||
Subtotal | 3,807,339 | 227,787 | ||||||
| United States | 176,407 | — | ||||||
Total | $ | 3,983,746 | $ | 227,787 | ||||
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Emerging Countries
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Bermuda | $ | 297,208 | $ | — | ||||
| Brazil | 1,188,469 | — | ||||||
| Chile | 507,316 | 127,842 | ||||||
| China | 249,694 | — | ||||||
| Czech Republic | 524,269 | 78,640 | ||||||
| Estonia | 187,840 | 41,325 | ||||||
| Greece | 84,176 | — | ||||||
| Hong Kong | (35 | ) | — | |||||
| Hungary | 831,778 | — | ||||||
| Indonesia | 60,216 | 9,032 | ||||||
| Israel | 894,075 | 178,815 | ||||||
| Korea | (1 | ) | — | |||||
| Mexico | 171,281 | — | ||||||
| Pakistan | 39,955 | 3,995 | ||||||
| Panama | 372,665 | — | ||||||
| Philippines | 74,762 | 18,690 | ||||||
| Singapore | 113,687 | — | ||||||
| South Korea | 975,772 | 161,002 | ||||||
| Taiwan | 2,114,886 | 420,515 | ||||||
| Thailand | 256,164 | 23,684 | ||||||
| Turkey | 64 | — | ||||||
| Venezuela | 763,895 | — | ||||||
Subtotal | 9,708,135 | 1,063,541 | ||||||
| United States | 185,354 | — | ||||||
Total | $ | 9,893,489 | $ | 1,063,541 | ||||
Greater China
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Bermuda | $ | 48,363 | $ | — | ||||
| Cayman Islands | 12,799 | — | ||||||
| China | 249,852 | — | ||||||
| Hong Kong | 536,235 | — | ||||||
| Taiwan | 518,265 | 103,213 | ||||||
Subtotal | 1,365,514 | 103,213 | ||||||
| United States | 13,917 | — | ||||||
Total | $ | 1,379,431 | $ | 103,213 | ||||
Index Plus International Equity
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 268,361 | $ | — | ||||
| Austria | 59,466 | 8,920 | ||||||
| Belgium | 41,828 | 5,766 | ||||||
| Bermuda | 32,294 | — | ||||||
| China | 488 | — | ||||||
| Denmark | 20,908 | 3,136 | ||||||
| Euro Community | 463 | — | ||||||
| Finland | 25,739 | 3,861 | ||||||
| France | 225,216 | 33,288 | ||||||
| Germany | 288,870 | 40,541 | ||||||
| Greece | 1,102 | — | ||||||
| Hong Kong | 43,739 | — | ||||||
| Ireland | 18,273 | — | ||||||
| Italy | 198,578 | 29,411 | ||||||
| Japan | 272,979 | 19,053 | ||||||
| Netherlands | 76,647 | 10,679 | ||||||
| New Zealand | 11,930 | 1,790 | ||||||
| Norway | 46,360 | 6,135 | ||||||
| Portugal | 10,896 | 1,175 | ||||||
| Singapore | 45,893 | — | ||||||
| Spain | 72,256 | 10,820 | ||||||
| Sweden | 105,706 | 15,860 | ||||||
| Switzerland | 145,876 | 21,622 | ||||||
| United Kingdom | 896,886 | — | ||||||
Subtotal | 2,910,754 | 212,057 | ||||||
| United States | 85,128 | — | ||||||
Total | $ | 2,995,882 | $ | 212,057 | ||||
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International Capital Appreciation
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 74,683 | $ | — | ||||
| Austria | 15,477 | 2,322 | ||||||
| Bermuda | 41,084 | — | ||||||
| Brazil | 76,017 | — | ||||||
| Canada | 42,285 | 6,343 | ||||||
| European Community | (386 | ) | — | |||||
| France | 85,856 | 12,816 | ||||||
| Germany | 90,379 | 13,557 | ||||||
| Greece | 39,272 | — | ||||||
| Hong Kong | 16,595 | — | ||||||
| India | 17,887 | — | ||||||
| Ireland | 11,160 | — | ||||||
| Israel | 11,190 | 1,843 | ||||||
| Italy | 98,959 | 14,844 | ||||||
| Japan | 144,268 | 10,099 | ||||||
| Mexico | 8,458 | — | ||||||
| Netherlands | 23,899 | 3,585 | ||||||
| Singapore | 33,344 | — | ||||||
| South Korea | 39,433 | 6,507 | ||||||
| Spain | 180,696 | 27,100 | ||||||
| Switzerland | 178,964 | 26,845 | ||||||
| Taiwan | 53,163 | 10,633 | ||||||
| United Kingdom | 337,277 | — | ||||||
Subtotal | 1,619,961 | 136,492 | ||||||
| United States | 43,731 | — | ||||||
Total | $ | 1,663,692 | $ | 136,492 | ||||
International Equity Dividend
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 42,868 | $ | — | ||||
| Belgium | 5,292 | 794 | ||||||
| Bermuda | 3,471 | — | ||||||
| Brazil | 5,521 | — | ||||||
| Canada | 44,899 | 6,712 | ||||||
| China | 6,029 | — | ||||||
| European Community | 264 | — | ||||||
| Hong Kong | 2,502 | — | ||||||
| Ireland | 3,853 | — | ||||||
| Israel | 5,486 | 1,097 | ||||||
| Italy | 19,764 | 2,965 | ||||||
| Luxembourg | 4,360 | 654 | ||||||
| Netherlands | 2,143 | 321 | ||||||
| New Zealand | 7,480 | 1,122 | ||||||
| South Africa | 3,815 | — | ||||||
| Spain | 7,584 | 1,138 | ||||||
| Thailand | 9,593 | 959 | ||||||
| United Kingdom | 114,934 | — | ||||||
Subtotal | 289,858 | 15,761 | ||||||
| United States | 30,408 | — | ||||||
Total | $ | 320,266 | $ | 15,761 | ||||
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International Growth Opportunities
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Belgium | $ | 24,911 | $ | 3,737 | ||||
| Bermuda | 53,773 | — | ||||||
| Brazil | 62,947 | — | ||||||
| Canada | 13,295 | 1,794 | ||||||
| China | 38,318 | — | ||||||
| European Community | 210 | — | ||||||
| France | 102,981 | 15,447 | ||||||
| Germany | 97,084 | 7,954 | ||||||
| Greece | 65,411 | — | ||||||
| Hong Kong | 101,789 | — | ||||||
| India | (7,149 | ) | — | |||||
| Ireland | 40,995 | — | ||||||
| Italy | 198,805 | 29,821 | ||||||
| Japan | 253,170 | 17,726 | ||||||
| Mexico | 700 | — | ||||||
| Russia | 162,990 | 24,450 | ||||||
| South Africa | (3 | ) | — | |||||
| South Korea | 1,388 | 229 | ||||||
| Sweden | 225,899 | 33,910 | ||||||
| Switzerland | 239,819 | 30,200 | ||||||
| Taiwan | 98,736 | 19,697 | ||||||
| Turkey | 55,392 | 8,197 | ||||||
| United Kingdom | 724,968 | — | ||||||
Subtotal | 2,556,429 | 193,160 | ||||||
| United States | 247,619 | — | ||||||
Total | $ | 2,804,048 | $ | 193,160 | ||||
International Real Estate
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 3,060,197 | $ | — | ||||
| Bermuda | 13,678 | — | ||||||
| Brazil | 8,281 | — | ||||||
| Canada | 620,413 | 92,763 | ||||||
| China | 165,139 | — | ||||||
| Euro Community | 3,026 | — | ||||||
| Finland | 110,304 | 16,546 | ||||||
| France | 568,839 | 84,225 | ||||||
| Germany | 78,844 | 4,273 | ||||||
| Hong Kong | 709,502 | — | ||||||
| India | 2,514 | — | ||||||
| Italy | 34,681 | 5,202 | ||||||
| Japan | 917,029 | 64,192 | ||||||
| Luxembourg | 8,748 | — | ||||||
| Netherlands | 238,950 | 35,843 | ||||||
| Norway | 111,556 | 16,718 | ||||||
| Philippines | 7,132 | 1,783 | ||||||
| Singapore | 515,523 | — | ||||||
| Sweden | 115,383 | 17,307 | ||||||
| Switzerland | (78 | ) | — | |||||
| Thailand | 12,746 | 1,275 | ||||||
| United Kingdom | 792,871 | — | ||||||
Subtotal | 8,095,276 | 340,126 | ||||||
| United States | 27,160 | — | ||||||
Total | $ | 8,122,435 | $ | 340,126 | ||||
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International SmallCap
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 2,916,873 | $ | — | ||||
| Australian Dollar | 1,183 | — | ||||||
| Austria | 84,525 | 12,679 | ||||||
| Belgium | 348,541 | 52,281 | ||||||
| Bermuda | 587,275 | — | ||||||
| Brazil | 43,847 | — | ||||||
| Canada | 1,253,966 | 192,392 | ||||||
| Cayman Islands | 67,690 | — | ||||||
| China | 16,320 | — | ||||||
| Denmark | 315,871 | 47,140 | ||||||
| European Community | 1,659 | — | ||||||
| Finland | 338,963 | 50,844 | ||||||
| France | 1,931,425 | 253,188 | ||||||
| Guernsey Channel Islands | 29,967 | — | ||||||
| Germany | 1,160,240 | 108,348 | ||||||
| Greece | 88,530 | — | ||||||
| Hong Kong | 229,743 | — | ||||||
| India | 138,745 | — | ||||||
| Indonesia | 1,025 | 154 | ||||||
| Ireland | 18,586 | — | ||||||
| Israel | 58,182 | 11,638 | ||||||
| Italy | 372,267 | 56,499 | ||||||
| Japan | 2,129,226 | 147,848 | ||||||
| Korea | 3,083 | — | ||||||
| Lichtensetin | 35,739 | 734 | ||||||
| Luxembourg | 6,132 | 816 | ||||||
| Malaysia | 27,159 | — | ||||||
| Mexico | 27,290 | — | ||||||
| Netherlands | 691,180 | 86,031 | ||||||
| New Zealand | 139,931 | 20,945 | ||||||
| Norway | 1,017,703 | 110,489 | ||||||
| Portugal | 59,241 | 6,407 | ||||||
| Russia | 34,139 | 5,121 | ||||||
| Singapore | 834,780 | — | ||||||
| South Korea | 646,580 | 105,425 | ||||||
| Spain | 114,406 | 16,766 | ||||||
| Sweden | 522,988 | 78,423 | ||||||
| Switzerland | 321,024 | 48,155 | ||||||
| Taiwan | 503,649 | 99,681 | ||||||
| Thailand | 58,922 | 5,892 | ||||||
| Turkey | 448,496 | 34,918 | ||||||
| United Kingdom | 2,980,495 | — | ||||||
| Venezuela | (62 | ) | — | |||||
| Virgin Islands | (2,936 | ) | — | |||||
Subtotal | 20,604,589 | 1,552,813 | ||||||
| United States | 535,284 | — | ||||||
Total | $ | 21,139,872 | $ | 1,552,813 | ||||
International Value
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Bermuda | $ | 2,174,815 | $ | — | ||||
| Brazil | 3,148,829 | — | ||||||
| European Community | 26,088 | — | ||||||
| France | 16,460,917 | 2,460,455 | ||||||
| Germany | 13,018,159 | 1,952,724 | ||||||
| Italy | 15,211,790 | 2,087,552 | ||||||
| Japan | 16,703,517 | 1,169,246 | ||||||
| Mexico | 2,254,297 | — | ||||||
| Netherlands | 17,511,788 | 2,033,961 | ||||||
| New Zealand | 3,951,449 | 592,373 | ||||||
| Portugal | 4,442,492 | 666,374 | ||||||
| Singapore | 470,318 | — | ||||||
| South Korea | 8,154,171 | 1,345,438 | ||||||
| Spain | 5,593,504 | 839,026 | ||||||
| Switzerland | 5,539,019 | 830,960 | ||||||
| Taiwan | 2,797,651 | 559,478 | ||||||
| United Kingdom | 27,072,431 | — | ||||||
| Venezuela | 4,801,206 | — | ||||||
Subtotal | 149,332,441 | 14,537,587 | ||||||
| United States | 695,959 | — | ||||||
Total | $ | 150,028,400 | $ | 14,537,587 | ||||
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International Value Choice
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 85,831 | $ | — | ||||
| Belgium | 89,171 | 13,376 | ||||||
| Brazil | 67,260 | — | ||||||
| Canada | 69,884 | 10,483 | ||||||
| Euro Community | 293 | — | ||||||
| Finland | 102,913 | 15,437 | ||||||
| France | 126,517 | 18,697 | ||||||
| Italy | 375,309 | 48,197 | ||||||
| Japan | 456,065 | 31,926 | ||||||
| Mexico | 95 | — | ||||||
| South Africa | 121,410 | — | ||||||
| South Korea | 163,673 | 27,006 | ||||||
| Taiwan | 209,008 | 43,113 | ||||||
| United Kingdom | 388,647 | — | ||||||
Subtotal | 2,256,079 | 208,235 | ||||||
| United States | 27,679 | — | ||||||
Total | $ | 2,283,759 | $ | 208,235 | ||||
International Value Opportunities
| Gross Income | Foreign Tax | |||||||
| Country | Earned | Withheld | ||||||
| Australia | $ | 3,501 | $ | — | ||||
| Belgium | 13,792 | 1,510 | ||||||
| Bermuda | 1,838 | — | ||||||
| Denmark | 3,154 | 473 | ||||||
| Euro Community | 29 | — | ||||||
| Finland | 15,321 | 2,298 | ||||||
| France | 33,270 | 4,987 | ||||||
| Germany | 13,960 | 1,638 | ||||||
| Greece | 6,918 | — | ||||||
| Hong Kong | 1,889 | — | ||||||
| Italy | 45,740 | 6,075 | ||||||
| Japan | 31,626 | 2,114 | ||||||
| Netherlands | 11,744 | 1,762 | ||||||
| New Zealand | 5,292 | 794 | ||||||
| Spain | 6,708 | 1,006 | ||||||
| Sweden | 2,198 | 325 | ||||||
| Switzerland | 10,431 | 1,565 | ||||||
| United Kingdom | 86,066 | — | ||||||
Subtotal | 293,477 | 24,546 | ||||||
| United States | 3,550 | — | ||||||
Total | $ | 297,027 | $ | 24,546 | ||||
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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BOARD CONSIDERATION AND APPROVAL OF NEW ADVISORY AND SUB-ADVISORY CONTRACTS FOR ING INTERNATIONAL EQUITY DIVIDEND FUND
Section 15 of the 1940 Act mandates that, when a series of IMF enters into new advisory or sub-advisory arrangements, the Board of IMF, including a majority of the Trustees who have no direct or indirect interest in the advisory and sub-advisory agreements governing those arrangements, and who are not “interested persons” of the series, as such term is defined under the 1940 Act (the “Independent Trustees”), must approve those advisory and sub-advisory agreements. Therefore, in order for a new series of IMF to be launched, the Board must approve an advisory and, if applicable, sub-advisory contract for that series prior to the commencement of its operations. At a meeting held on May 10, 2007, the Board considered and approved a new advisory agreement (“Advisory Contract”) and sub-advisory agreement (“Sub-Advisory Contract”) for ING International Equity Dividend Fund (the “Fund”), a new series of IMF that commenced operations on June 28, 2007, for an initial term that ends on November 30, 2008.
In reaching this decision, the Board took into account information furnished throughout the year at regular Board meetings with respect to ING Investments, LLC, the investment adviser to the Fund (the “Adviser” or “IIL”), and from ING Investment Management Advisors B.V. (“IIMA“ or the “Sub-Adviser”), the Fund’s proposed sub-adviser, as well as information prepared specifically in connection with the Board’s deliberations with respect to the approval of the advisory and sub-advisory arrangements for the Fund. The Board’s determination took into account a number of factors that its members believed, in light of the legal advice furnished to them by Kirkpatrick & Lockhart Preston Gates Ellis LLP (“K&L Gates”), their independent legal counsel, and their own business judgment, to be relevant. Further, while the Fund’s Advisory Contract and Sub-Advisory Contract were considered at the same Board meeting, the Trustees considered the Fund’s advisory and sub-advisory relationships separately.
Provided below is a discussion of certain factors the Board considered at the May 10, 2007 meeting in considering the new advisory and sub-advisory arrangements for the Fund. While the Board gave its attention to the information furnished, at its request, that was most relevant to its consideration, discussed below are a number of the primary factors relevant to the Board’s consideration as to whether to approve the Advisory and Sub-Advisory Contracts for initial terms ending November 30, 2008. Each Trustee may have accorded different weight to the various factors in reaching his or her conclusions with respect to the Fund’s advisory and sub-advisory arrangements.
Overview of the Contract Approval Process
In 2003, the Independent Trustees determined to undertake steps to further enhance the process under which the Board determines whether to approve new advisory and sub-advisory arrangements. Among these measures, the Board: retained the services of an independent consultant with experience in the mutual fund industry to assist the Independent Trustees in working with the personnel employed by the Adviser or its affiliates who administer the Fund (“Management”) to identify the types of information presented to the Board to inform its deliberations with respect to advisory and sub-advisory relationships; established the format in which the information requested by the Board is provided to the Board; and determined the process for reviewing such information in connection with the advisory and sub-advisory contract approval process. The end result was the implementation of the current process relied upon by the Board to review and analyze information in connection with its review and approval of new advisory and sub-advisory relationships.
Since the foregoing approval process was implemented, the Board regularly has reviewed and refined the process. In addition, the Board established a Contracts Committee and two Investment Review Committees, including the International/ Balanced/ Fixed Income Funds Investment Review Committee (the “I/ B/ F IRC”). The type and format of the information provided to the Board or its counsel to inform its approval process has been codified in the Fund’s “15(c) Methodology Guide” (the “Methodology Guide”). The Methodology Guide was developed under the direction of the Independent Trustees, and sets out a written blueprint under which the Independent Trustees request certain information necessary to facilitate a thorough and informed review in connection with the Trustees’ deliberations regarding advisory and sub-advisory relationships. Management provides information specific to the funds in the ING Funds complex to the Independent Trustees based on the Methodology Guide through “Fund Analysis and Comparison Tables” or “FACT” sheets prior to the Independent Trustees’ review of
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new advisory and sub-advisory contracts. In 2005, the Independent Trustees retained an independent firm to verify and test the accuracy of certain of this information for a representative sample of funds in the ING Funds complex. The Independent Trustees have determined to conduct such testing periodically.
As part of a regular on-going process, the Board’s Contracts Committee recommends or considers recommendations from Management for refinements and other changes to the Methodology Guide and other aspects of the approval process. The I/ B/ F IRC also meets regularly with the Adviser, and has met with IIMA from time to time in the context of its management of other funds in the ING Funds complex. The Board employed its process when considering whether to approve the Advisory and Sub-Advisory Contracts. A number of the Board’s primary considerations and conclusions resulting from this process are discussed below.
Nature, Extent and Quality of Service
In determining whether to approve the Fund’s Advisory and Sub-Advisory Contracts for their initial terms ending November 30, 2008, the Independent Trustees received and evaluated such information as they deemed necessary regarding the nature, extent and quality of services to be provided to the Fund by IIL and the Sub-Adviser. This included information regarding IIL and IIMA provided throughout the year at regular Board meetings in the context of their services to other funds in the ING Funds complex, as well as information furnished with respect to the Fund at the May 10, 2007 Board meeting.
The materials requested by and provided to the Board and/or to K&L Gates prior to the May 10, 2007 Board meeting included the following items: (1) FACT sheets for the Fund that provide information about the Fund’s proposed expenses, compared to other, similarly managed funds in a selected peer group (“SPG”), as well as information about the Fund’s proposed investment portfolio, objective and strategies; (2) responses from the Adviser and the Sub-Adviser to a detailed series of questions posed by K&L Gates; (3) forms of Advisory and Sub-Advisory Contracts; (4) drafts of a narrative summary addressing key factors the Board considered in determining whether to approve the Fund’s Advisory and Sub-Advisory Contracts; and (5) other information relevant to the Board’s evaluations.
In arriving at its conclusions with respect to the proposed Advisory Contract, the Board was mindful of the “manager-of-managers” platform of the ING Funds. The Board also considered the techniques that the Adviser developed, at the Board’s direction, to screen and perform due diligence on sub-advisers that are recommended to the Board to manage the funds in the ING Funds complex.
The Board reviewed the level of staffing, quality and experience of the Fund’s proposed portfolio management team. The Board took into account the respective resources and reputations of IIL and IIMA, and evaluated the ability of IIL and IIMA to attract and retain qualified investment advisory personnel. The Board also considered the adequacy of the resources committed to the Fund (and other relevant funds in the ING Funds complex) by the Adviser and the Sub-Adviser, and whether those resources are commensurate with the needs of the Fund and are appropriate to attempt to sustain expected levels of performance, compliance, and other needs.
Based on their deliberations and the materials presented to them, the Board concluded that the advisory and related services provided by the Adviser and Sub-Adviser would be appropriate in light of the Fund’s anticipated operations, the competitive landscape of the investment company business, and investor needs, and that the nature and quality of the overall services to be provided by the Adviser and Sub-Adviser would be appropriate.
Economies of Scale
In considering the reasonableness of the Fund’s proposed advisory fee rate, the Board considered whether economies of scale will be realized by the Adviser as the Fund grows larger and the extent to which this is reflected in the level of management fee rate charged. In this regard, the Board noted that there would be no breakpoint discounts applicable to the Fund’s advisory and sub-advisory fee rates. The Board noted that expense waiver arrangements would be put into place for the Fund, and considered the extent to which economies of scale could effectively be realized through such expense waivers.
Fee Rates and Profitability
The Board reviewed and considered the contractual investment advisory fee rate, combined with the administrative fee rate, payable by the Fund to the Adviser. The Board also considered the contractual
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sub-advisory fee rate payable by the Adviser to the Sub-Adviser for sub-advisory services.
The Board considered the Fund’s fee structure as it relates to the services to be provided under the Advisory and Sub-Advisory Contracts, and the potential “fall-out” benefits to the Adviser and Sub-Adviser, and their respective affiliates, from their association with the Fund. For the Fund, the Board determined that the fees payable to the Adviser and Sub-Adviser are reasonable for the services that each is expected to perform through the Fund’s initial term ending November 30, 2008.
For the Fund, the Board considered information on estimated revenues, costs and profits for the Adviser for the first two years of the Fund’s operations. In analyzing the Adviser’s projected profitability in connection with its services to the Fund, the Board took into account the sub-advisory fee rate payable by the Adviser to the Sub-Adviser to the Fund. The Board also considered information that it requested and was provided by Management with respect to the profitability of service providers affiliated with the Adviser.
The Board determined that it had requested and received sufficient information to gain a reasonable understanding regarding the Adviser’s projected profitability. The Board also recognized that profitability analysis is not an exact science and there is no uniform methodology for determining profitability for this purpose. In this context, the Board realized that Management’s calculations regarding its costs incurred in establishing the infrastructure necessary for the Fund’s operations may not be fully reflected in the expenses allocated to the Fund in determining profitability, and that the information presented may not portray all of the costs borne by Management nor capture Management’s entrepreneurial risk associated with offering and managing a mutual fund complex in today’s regulatory environment. Based on the information on revenues, costs, and IIL’s profitability considered by the Board, after considering the factors described in this section, the Board concluded that the profits, if any, to be realized by IIL were not excessive.
Other Factors Considered
The following paragraphs outline certain of the specific factors that the Board considered, and the conclusions reached, at its May 10, 2007 meeting in relation to approving the Fund’s Advisory and Sub-Advisory Contracts for their initial terms ending November 30, 2008. These specific factors are in addition to those considerations discussed above. The Fund’s proposed management fee rate and estimated expense ratio were compared to the fees and expense ratios of the funds in its comparable SPG.
In determining whether to approve the Advisory and Sub-Advisory Contracts for the Fund, the Board received and evaluated such information as it deemed necessary for an informed determination of whether each agreement, and the proposed policies and procedures for the Fund, should be approved. The materials provided to the Board in support of the Fund’s advisory and sub-advisory arrangements included the following: (1) a memorandum presenting Management’s rationale for requesting the launch of the Fund that discusses, among other things: (a) IIL’s experience and expertise in the management of other funds within the ING Funds complex, particularly ING Global Equity Dividend Fund and ING VP Global Equity Dividend Portfolio; (b) IIMA’s experience in managing international and global investments; (c) the experience of IIL overseeing sub-advisers to other funds within the ING Funds complex, including IIMA; (2) information about the Fund’s proposed investment objective and strategies and anticipated portfolio characteristics; (3) FACT sheets for the Fund that compare the Fund’s proposed fee structure to its comparable SPG and Morningstar/ Lipper category medians; (4) supporting documentation, including copies of the forms of Advisory and Sub-Advisory Contracts for the Fund; and (5) other information relevant to the Board’s evaluation. In addition, the Board considered the information provided periodically throughout the year in presentations to the Board by IIL in the context of IIL’s oversight of other sub-advisers managing funds in the ING Funds complex, and by IIMA in connection with its management of other funds in the ING Funds complex.
At the May meeting, the Board considered that the Fund would be subject to the standard policies and procedures of IMF previously approved by the Board for other series of IMF and approved in accordance with Rule 38a-1 under the Investment Company Act of 1940. The Board also noted that, in managing the Fund, IIL would be subject to procedures adopted pursuant to Rule 206(4)-7 under the Investment Advisers Act of 1940 that had been previously approved by the Board in connection with other funds in the ING Funds complex.
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The Board’s consideration of whether to approve the Advisory Contract with IIL on behalf of the Fund took into account several factors including, but not limited to, the following: (1) the nature and quality of the services to be provided by IIL to the Fund under the proposed Advisory Contract; (2) IIL’s experience as a manager-of-managers overseeing sub-advisers to other funds within the ING Funds complex, including other international and global funds; (3) IIL’s strength and reputation within the industry; (4) the fairness of the compensation under the proposed Advisory Contract in light of the services to be provided to the Fund and taking into account the sub-advisory fees payable by IIL to IIMA; (5) the costs for the services to be provided by IIL, including that the proposed advisory fee rate would not be subject to breakpoint discounts; (6) the pricing structure (including the estimated expense ratio to be borne by shareholders) of the Fund, including that: (a) the proposed management fee (inclusive of the advisory fee and a 0.10% administration fee) for the Fund is below the median and the average management fees of the funds in the Fund’s SPG, and (b) the estimated expense ratio for the Fund is below the median and average expense ratios of the funds in the Fund’s SPG; (7) the projected profitability of IIL when sub-advisory fees payable by IIL to the Sub-Adviser are taken into account; (8) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of IIL, including its management team’s expertise in the management of other funds; (9) IIL’s compliance capabilities, as demonstrated by, among other things, its policies and procedures designed to prevent violations of the Federal securities laws, which had previously been approved by the Board in connection with its oversight of other funds in the ING Funds complex; (10) the information that had been provided by IIL at regular Board meetings, and in anticipation of the May 2007 meeting, with respect to its capabilities as a manager of-managers in overseeing similar mutual funds; and (11) “fall-out benefits” to IIL and its affiliates that were anticipated to arise from IIL’s management of the Fund.
In reviewing the proposed Sub-Advisory Contract with IIMA, the Board considered a number of factors, including, but not limited to, the following: (1) IIL’s view of IIMA as a manager to other funds in the ING Funds complex, including other international and global funds; (2) the Sub-Adviser’s strength and reputation in the industry; (3) the information that had been provided by IIMA in anticipation of the May 2007 meeting with respect to its sub-advisory services in general and its management of international and global funds in particular; (4) the nature and quality of the services to be provided by IIMA under the proposed Sub-Advisory Contract; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of IIMA, including its management team’s expertise in the management of international funds specializing in the types of investment which the Fund would engage; (6) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by and the projected profitability of IIMA as the Fund’s Sub-Adviser; (7) the costs for the services to be provided by the Sub-Adviser; (8) the Sub-Adviser’s operations and compliance program, including its policies and procedures adopted pursuant to Rule 206(4)-7 under the Investment Advisers Act of 1940, which had previously been approved by the Board as part of its oversight of other funds in the ING Funds complex; (9) the Sub-Adviser’s financial condition; (10) the appropriateness of the selection of the Sub-Adviser in light of the Fund’s proposed investment objectives and prospective investor base; and (11) IIMA’s Code of Ethics, which had previously been approved for other ING Funds, and related procedures for complying with that Code.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s proposed management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s estimated expense ratio is reasonable in the context of all factors considered by the Board; (3) the sub-advisory fee rate payable by IIL to IIMA is reasonable in the context of all factors considered by the Board; and (4) both IIL and IIMA maintain an appropriate compliance program, with this conclusion based upon the Board’s previous and ongoing review of their respective compliance programs and the representations of the Fund’s Chief Compliance Officer in materials provided to the Board in advance of the May meeting. Based on these conclusions and other factors, the Board voted to approve the Advisory and Sub-Advisory Contracts for the Fund. During its deliberations, different Board members may have given different weight to different individual factors and related conclusions.
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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 Growth Funds
| ING 130/30 Fundamental Research Fund ING Fundamental Research Fund ING Growth Fund ING LargeCap Growth Fund ING MidCap Opportunities Fund ING Opportunistic LargeCap Fund ING Small Company Fund | |
| ING SmallCap Opportunities Fund |
Domestic Equity Index Funds
| ING Index Plus LargeCap Equity Fund ING Index Plus LargeCap Equity Fund II ING Index Plus LargeCap Equity Fund III ING Index Plus LargeCap Equity Fund IV ING Index Plus LargeCap Fund ING Index Plus MidCap Fund ING Index Plus SmallCap Fund |
Domestic Equity Value Funds
| ING Financial Services Fund ING LargeCap Value Fund ING SmallCap Value Choice Fund ING Value Choice Fund |
Fixed-Income Funds
| ING GNMA Income Fund ING High Yield Bond Fund ING Intermediate Bond Fund ING National Tax-Exempt Bond Fund |
Global Equity Funds
| ING Global Equity Dividend Fund ING Global Natural Resources Fund ING Global Real Estate Fund ING Global Science and Technology Fund ING Global Value Choice Fund |
International Equity Funds
| ING Asia-Pacific Real Estate Fund ING Disciplined International SmallCap Fund ING Emerging Countries Fund ING European Real Estate Fund ING Foreign Fund ING Greater China Fund ING Index Plus International Equity Fund ING International Capital Appreciation Fund ING International Equity Dividend Fund ING International Growth Opportunities Fund ING International Real Estate ING International SmallCap Multi-Manager Fund ING International Value Fund ING International Value Choice Fund ING International Value Opportunities Fund ING Russia Fund |
Global and International Fixed-Income Funds
| ING Emerging Markets Fixed Income Fund ING Global Bond Fund |
International Fund-of-Funds
| ING Diversified International Fund |
Loan Participation Fund
| ING Senior Income Fund |
Money Market Funds*
| ING Money Market Fund ING Classic Money Market Fund |
Strategic Allocation Funds
| ING Strategic Allocation Conservative Fund ING Strategic Allocation Growth Fund ING Strategic Allocation Moderate 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. |
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Administrator
Distributor
Transfer Agent
Independent Registered Public
Custodian
Legal Counsel
For more complete information, or to obtain a prospectus on any ING fund, please call your Investment Professional or ING Funds Distributor, LLC at (800) 992-0180 or log on to www.ingfunds.com. The prospectus should be read carefully before investing. Consider the fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this information and other information about the fund.
 | PRAR-UINTALL (1007-122807) |
| (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 $153,511 for year ended October 31, 2007 and $201,711 for year ended October 31, 2006. | |
| (b) | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years Tor 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 $235,893 for the year ended October 31, 2007 and $0 for the year ended October 31, 2006. | |
| (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 $5,200 in the year ended October 31, 2007 and $5,010 in the year ended October 31, 2006. 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. | |
| None | ||
| (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. | |
| None | ||
| (e) | (1) Audit Committee Pre-Approval Policies and Procedures |
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| The Fund(s) | Fee Range | |||
| Statutory audits or financial audits (including tax services associated with audit services) | ü | 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. | ü | 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. | ü | 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 | ü | 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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| The Fund(s) | Fund Affiliates | Fee Range | ||||
| Services related to Fund mergers (Excludes tax services - - See Appendix C for tax services associated with Fund mergers) | ü | ü | 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.] | ü | Not to exceed $5,000 per occurrence during the Pre-Approval Period | ||||
| Review of the Funds’ semi-annual financial statements | ü | Not to exceed $2,200 per set of financial statements per fund | ||||
| Reports to regulatory or government agencies related to the annual engagement | ü | Up to $5,000 per occurrence during the Pre-Approval Period | ||||
| Regulatory compliance assistance | ü | ü | Not to exceed $5,000 per quarter | |||
| Training courses | ü | Not to exceed $2,000 per course | ||||
| For Prime Rate Trust, agreed upon procedures for quarterly reports to rating agencies | ü | 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 | ü | Not to exceed $21,000 per fund per year |
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| Fund | ||||||
| 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 | ü | As presented to Audit Committee 2 | ||||
| Review of IRC Sections 851(b) and 817(h) diversification testing on a real-time basis | ü | As presented to Audit Committee 2 | ||||
| Assistance and advice regarding year-end reporting for 1099’s | ü | As presented to Audit Committee 2 | ||||
| Tax assistance and advice regarding statutory, regulatory or administrative developments | ü | ü | 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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| Fund | ||||||
| The Fund(s) | Affiliates | Fee Range | ||||
| Tax training courses | ü | Not to exceed $2,000 per course during the Pre-Approval Period | ||||
| Tax services associated with Fund mergers | ü | ü | 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. | ü | Not to exceed $120,000 during the Pre-Approval Period |
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| The Fund(s) | Fund Affiliates | Fee Range | ||||
| Agreed-upon procedures for Class B share 12b-1 programs | ü | Not to exceed $50,000 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. | ü | ü | Not to exceed $5,000 per Fund during the Pre-Approval Period | |||
| Agreed upon procedures for 15 (c) FACT Books | ü | Not to exceed $35,000 during the Pre-Approval Period |
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| • | 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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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 INVESTMENT FUNDS, INC.
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 $212,850 for year ended October 31, 2007 and $115,487 for year ended October 31, 2006. | |
| (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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| (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. |
| (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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| By | /s/ Shaun P, Mathews | |||
| President and Chief Executive Officer |
| By | /s/ Shaun P. Mathews | |||
| President and Chief Executive Officer |
| By | /s/ Todd Modic | |||
| Senior Vice President and Chief Financial Officer |