The use of these strategies involves certain special risks, including a possible imperfect correlation, or even no correlation, between price movements of derivative instruments and price movements of related investments. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in related investments or otherwise, due to the possible inability of the Funds to purchase or sell a portfolio security at a time that otherwise would be favorable or the possible need to sell a portfolio security at a disadvantageous time because the Funds are required to maintain asset coverage or offsetting positions in connection with transactions in derivative instruments. Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the following notes.
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
The Funds intend to enter into financial transactions with counterparties that they believe to be creditworthy at the time of the transaction. To reduce this risk, the Funds generally enter into master netting arrangements, established within the Funds International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain over-the-counter (“OTC”) derivative and forward foreign currency contracts, entered into by the Funds and the counterparty. The Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable Master Agreement.
The Funds may also enter into collateral agreements with certain counterparties to further mitigate counterparty risk on OTC derivative and forward foreign currency contracts. Subject to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with a certain counterparty. Collateral pledged to or from the Funds is held in a segregated account by a third-party agent and can be in the form of cash or debt securities issued by the U.S. government or related agencies.
As of October 31, 2011, the maximum amount of loss that Index Plus International Equity, International Core, and International SmallCap Multi-Manager would incur if the counterparties to their derivative transactions failed to perform was $48,298, $288,355, and $1,870, respectively, which represents the unrealized appreciation on forward foreign currency contracts. No collateral was pledged by any counterparty to the above Fund’s as of October 31, 2011.
In addition to the above Funds, the maximum amount of loss that Global Bond would incur if it’s counterparties failed to perform was $17,423,196 which represents the gross payments to be received on open purchased options, forward foreign currency contracts and swaps were they to be unwound as of October 31, 2011. To reduce the amount of potential loss to Global Bond, various counterparties have posted $1,847,000 in cash collateral as of October 31, 2011.
The Funds have credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Funds. Credit related contingent features are established between the Funds and their derivatives counterparties to reduce the risk that the Funds will not fulfill their payment obligations to their counterparties. These triggering features include, but are not limited to, a percentage decrease in a Fund’s net assets and or a percentage decrease in a Fund’s NAV, which could cause a Fund to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Funds’ Master Agreements.
As of October 31, 2011, Index Plus International Equity, International Growth, and International SmallCap Multi-Manager had derivatives in a liability position of $102,069, $3,916, and $13,635, respectively. If a contingent feature would have been triggered as of October 31, 2011, the Funds would have been required to pay this amount is cash to their counterparties.
In addition to the above, Global Bond had a liability position of $27,724,443 on forward foreign currency contracts, swaps and written options with credit related contingent features. If a contingent feature would have been triggered as of October 31, 2011, Global Bond could have been required to pay this amount in cash to its counterparties. As of October 31, 2011, Global Bond had posted $12,010,000 to its counterparties in cash collateral for its open derivatives transactions.
E. Forward Foreign Currency Transactions and Futures Contracts. Each Fund and Underlying Fund may enter into forward foreign currency exchange transactions to convert to and from different foreign currencies and to and from the U.S. dollar, generally in connection with the planned purchases or sales of securities. The Funds and Underlying Funds either enter into these transactions on 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.
During the year ended October 31, 2011, Index Plus International Equity, International Core, International Growth, International SmallCap Multi-Manager and
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NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
International Value had average contract amounts on forward foreign currency contracts to buy of $343,079, $14,520, $53,040, $299,487, and $98,757, respectively. In addition to the above, Global Value Choice, Index Plus International Equity, International Core, International Growth, International SmallCap Multi-Manager and International Value had average contract amounts on forward foreign currency contract to sell of $6,388, $360,353, $4,697,902, $23,065, $16,495, and $19,284, respectively. The above Funds used forward foreign currency contracts primarily to protect their non-U.S. dollar denominated holdings from adverse currency movements. Please refer to the tables following each respective Summary Portfolio of Investments for open forward foreign currency contracts at October 31, 2011.
During the year ended October 31, 2011, Global Bond had average contract amounts on forward foreign currency contracts to buy and sell of $627,861,552 and $473,548,173, respectively. The Fund used forward foreign currency contracts to protect its non-U.S. dollar denominated holdings from adverse currency movement and to gain exposure to currencies for the purposes of risk management or enhanced return. Please refer to the tables following the Summary Portfolio of Investments for open forward foreign currency contracts at October 31, 2011.
Each Fund and Underlying Fund may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. Each Fund and Underlying Fund intends to limit its use of futures contracts and futures options to “bona fide hedging” transactions, as such term is defined in applicable regulations, interpretations and practice. A futures contract obligates the seller of the contract to deliver and the purchaser of the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time for a specified price. Upon entering into such a contract, a Fund or an Underlying Fund is required to deposit and maintain as collateral such initial margin as required by the exchange on which the contract is traded. Pursuant to the contract, a Fund or an Underlying Fund agrees to receive from or pay to the broker an amount equal to the daily fluctuations in the value of the contract. Such receipts or payments are known as variation margin and are recorded as unrealized gains or losses by the Fund or Underlying Fund. When the contract is closed, the Fund or Underlying Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are exposed to the market risk factor of the underlying financial instrument. During the year ended October 31, 2011, Emerging Markets Equity and Index Plus International Equity had purchased futures contracts on equity indices to gain additional exposure to the foreign equity markets. During the year ended October 31, 2011, Global Bond had both purchased and sold futures contracts on various bonds and notes to gain exposure to different parts of the yield curve to assist the Fund with its duration strategy. Additional associated risks of entering into futures contracts include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
During the year ended October 31, 2011, Emerging Markets Equity and Index Plus International Equity had an average notional value of $3,164,759 and $2,773,973, respectively, on futures contracts purchased.
During the year ended October 31, 2011, Global Bond had an average notional value of $245,248,044 and $102,902,894 on futures contracts purchased and sold, respectively.
F. Options Contracts. The Funds may write call and put options on futures, swaps (“swaptions”), securities, commodities or foreign currencies they own or in which they may invest. Writing put options tends to increase the Funds’ exposure to the underlying instrument. Writing call options tends to decrease the Funds’ exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as written options outstanding on the Statements of Assets and Liabilities. Certain options may be written with premiums to be determined on a future date. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying futures, swap, security or currency transaction to determine the realized gain or loss. A Fund as a writer of an option has no control
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NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
over whether the underlying instrument may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the instrument underlying the written option. There is the risk the Funds may not be able to enter into a closing transaction because of an illiquid market.
The Funds may also purchase put and call options. Purchasing call options tends to increase the Funds exposure to the underlying instrument. Purchasing put options tends to decrease the Funds exposure to the underlying instrument. The Funds pay a premium which is included on the Statements of Assets and Liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. Certain options may be purchased with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying investment transaction to determine the realized gain or loss.
During the year ended October 31, 2011, Global Bond has purchased and written foreign currency options to gain exposure to currencies and to generate income.
During the year ended October 31, 2011, Global Bond has purchased and written interest rate swaptions to gain exposure to interest rates and to generate income.
During the year ended October 31, 2011, Global Bond has purchased and written options on exchange-traded futures contracts to gain exposure to different parts of the yield curve and to generate income.
Please refer to the Summary Portfolio of Investments for Global Bond for open purchased options and the table following the Summary Portfolio of Investments for open written options at October 31, 2011.
Please refer to Note 10 for the volume of purchased and written option activity during the year ended October 31, 2011.
G. Swap Agreements. Certain Funds may enter into swap agreements. A swap is an agreement between two parties pursuant to which each party agrees to make one or more payments to the other at specified future intervals based on the return of an asset (such as a stock, bond or currency) or non-asset reference (such as an interest rate or index). The swap agreement will specify the “notional” amount of the asset or non-asset reference to which the contract relates. Subsequent changes in fair value, if any, are calculated based upon changes in the performance of the asset or non-asset reference multiplied by the notional value of the contract. A Fund may enter into credit default, interest rate, total return and currency swaps to manage its exposure to credit, currency and interest rate risk. All outstanding swap agreements are reported following each Fund’s Summary Portfolio of Investments.
Swaps are marked to market daily using quotations primarily from third party pricing services, counterparties or brokers. The value of the swap contract is recorded on each Fund’s Statement of Assets and Liabilities. During the term of the swap, changes in the value of the swap, if any, are recorded as unrealized gains or losses on the Statement of Operations. Upfront payments paid or received by a Fund when entering into the agreements are reported on the Statement of Assets and Liabilities and as a component of the changes in unrealized gains or losses on the Statement of Operations. These upfront payments represent the amounts paid or received when initially entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and the prevailing market conditions. The upfront payments are included as a component in the realized gains or losses on each Fund’s Statement of Operations upon termination or maturity of the swap. A Fund also records net periodic payments paid or received on the swap contract as a realized gain or loss on the Statement of Operations.
Entering into swap agreements involves the risk that the maximum potential loss of an investment exceeds the current value of the investment as reported on each Fund’s Statement of Assets and Liabilities. Other risks involve the possibility that the counterparty to the agreements may default on its obligation to perform, that there will be no liquid market for these investments and that unfavorable changes in the market will have a negative impact on the value of the index or securities underlying the respective swap agreement.
Credit Default Swap Contracts. A credit default swap is a bilateral agreement between counterparties in which the buyer of the protection agrees to make a stream of periodic payments to the seller of protection in exchange for the right to receive a specified return in the event of a default or other credit event for a referenced entity, obligation or index. As a seller of protection on credit default swaps, a Fund will generally receive from the buyer a fixed payment
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NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
stream based on the notional amount of the swap contract. This fixed payment stream will continue until the swap contract expires or a defined credit event occurs.
A Fund is subject to credit risk in the normal course of pursuing its investment objectives. As a seller of protection in a credit default swap, a Fund may execute these contracts to manage its exposure to the market or certain sectors of the market. A Fund may also enter into credit default swaps to speculate on changes in an issuer’s credit quality, to take advantage of perceived spread advantages, or to offset an existing short equivalent (i.e. buying protection on an equivalent reference entity).
Certain Funds may sell credit default swaps which expose these Funds to the risk of loss from credit risk-related events specified in the contract. Although contract specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default or repudiation/ moratorium. If a Fund is a seller of protection, and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will generally either (i) pay to the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations, or underlying securities comprising a referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising a referenced index. If a Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, a Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.
Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues are disclosed in each Fund’s Summary Portfolio of Investments and serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. For credit default swaps on asset-backed securities or credit indices, the quoted market prices and resulting fair values serve as the indicator of the current status of the payment/ performance risk. Wider credit spreads and increasing fair values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
The maximum amount of future payments (undiscounted) that a Fund as seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of October 31, 2011, for which a Fund is seller of protection, are disclosed following each Fund’s Summary Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreements, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities.
For the year ended October 31, 2011, Global Bond has purchased credit protection through credit default swaps to decrease exposure to the credit risk of individual securities and to hedge against anticipated potential credit events.
For the year ended October 31, 2011, Global Bond had an average notional amount of $7,200,000 on credit default swaps to buy protection.
There were no open credit default swaps at October 31, 2011.
Interest Rate Swap Agreements. Certain Funds may enter into interest rate swaps. An interest rate swap is an agreement between counterparties to exchange periodic payments based on interest rates. One cash
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NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
flow stream will typically be a floating rate payment based upon a specified interest rate while the other is typically a fixed interest rate.
For the year ended October 31, 2011, Global Bond has entered into interest rate swaps in which it pays a floating interest rate and receives a fixed interest rate (“Long interest rate swap”) in order to increase exposure to interest rate risk. Average notional amounts on long interest rate swaps were $206,853,229.
For the year ended October 31, 2011, Global Bond has entered into interest rate swaps in which it pays a fixed interest rate and receives a floating interest rate (“Short interest rate swap”) in order to decrease exposure to interest rate risk. Average notional amounts on short interest rate swaps were $216,680,012.
Global Bond enters into interest rate swaps to adjust interest rate and yield curve exposures and to substitute for physical fixed-income securities. Please refer to the table following the Summary Portfolio of Investments for open interest rate swaps at October 31, 2011.
Cross-Currency Swap Agreements. Cross-currency swaps are interest rate swaps in which interest cash flows are exchanged between two parties based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Cross-currency swaps also involve the exchange of the notional amounts at the start of the contract at the current spot rate with an agreement to re-exchange such amounts at a later date at either the same exchange rate, a specified rate or the then current spot rate. The entire principal value of a cross-currency swap is subject to the risk that the counterparty to the swap will default on its contractual delivery obligations.
For the year ended October 31, 2011, Global Bond has entered into cross-currency swaps to increase exposure to both foreign exchange and interest rate risk (inflation hedge). Please refer to the table following the Summary Portfolio of Investments for open cross-currency swaps at October 31, 2011.
For the year ended October 31, 2011, Global Bond had average notional amounts (local currency) of CLF (Chilean Unidad de Fomento) 138,112 and CLP (Chilean peso) 2,950,227,000 on currency bought and sold, respectively, on cross-currency swaps.
H. Distributions to Shareholders. The Funds record distributions to their shareholders on ex-dividend date. Each Fund pays dividends and capital gains, if any, annually (except, Global Equity Dividend, Global Real Estate, and International Real Estate, which pay dividends, if any, quarterly and Global Bond, which pay dividends, if any, monthly). The Funds may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. The characteristics of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles for investment companies.
I. Federal Income Taxes. It is the policy of each Fund to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized capital gains to its shareholders. Therefore, a federal income tax or excise tax provision is not required. Management has considered the sustainability of the Funds’ tax positions taken on federal income tax returns for all open tax years in making this determination. No capital gain distributions shall be made until the capital loss carryforwards have been fully utilized or expire.
The Funds may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain.
J. Use of Estimates. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
K. Securities Lending. Each Fund (except Diversified International) and Underlying Fund has the option to temporarily loan up to 33-1/3% of its total assets to brokers, dealers or other financial institutions in exchange for a negotiated lender’s fee. The borrower is required to fully collateralize the loans with cash or U.S. government securities. Generally, in the event of counterparty default, each Fund and Underlying Fund has the right to use collateral to offset losses incurred. There would be potential loss to a Fund or Underlying Fund in the event the Fund or Underlying Fund is delayed or prevented from exercising its right to
94
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
L. Restricted Securities. Each Fund (except Diversified International) and Underlying Fund may 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. Restricted securities are fair valued using market quotations when readily available. In the absence of market quotations, the securities are valued based upon their fair value determined in good faith under procedures approved by the Board.
M. Delayed-Delivery or When-Issued Transaction. The Funds (except Diversified International) 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 fair value of these securities is identified in each Fund’s Summary Portfolio of Investments. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Funds and Underlying Funds are required to segregate liquid assets sufficient to cover the purchase price.
N. Offering Costs. Costs incurred with the offering of shares of a Fund are deferred and amortized over a twelve month period on a straight-line basis starting at the commencement of operations.
O. Indemnifications. In the normal course of business, each Trust may enter into contracts that provide certain indemnifications. Each Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be estimated; however, based on experience, management considers risk of loss from such claims remote.
NOTE 3 — INVESTMENT TRANSACTIONS
For the year ended October 31, 2011, 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
|
|---|
| Diversified International | | | | $ | 186,537,072 | | | $ | 241,428,685 | |
| Emerging Countries | | | | | 138,327,828 | | | | 202,701,339 | |
| Emerging Markets Equity | | | | | 77,326,047 | | | | 1,178,873 | |
| Global Bond | | | | | 919,815,469 | | | | 852,991,078 | |
| Global Equity Dividend | | | | | 86,443,711 | | | | 148,866,804 | |
| Global Natural Resources | | | | | 90,814,249 | | | | 88,503,492 | |
| Global Opportunities | | | | | 62,866,210 | | | | 118,183,996 | |
| Global Real Estate | | | | | 1,865,336,394 | | | | 1,226,904,074 | |
| Global Value Choice | | | | | 597,140,551 | | | | 408,163,300 | |
| Greater China | | | | | 53,699,259 | | | | 59,698,855 | |
| Index Plus International Equity | | | | | 148,550,119 | | | | 189,254,552 | |
| International Capital Appreciation | | | | | 37,655,711 | | | | 102,990,255 | |
| International Core | | | | | 554,486,333 | | | | 176,249,943 | |
| International Growth | | | | | 214,680,027 | | | | 52,251,638 | |
| International Real Estate | | | | | 388,744,383 | | | | 503,239,088 | |
| International SmallCap Multi-Manager | | | | | 153,231,352 | | | | 260,830,282 | |
| International Value Choice | | | | | 22,302,057 | | | | 34,010,300 | |
| International Value | | | | | 1,141,152,040 | | | | 1,562,185,590 | |
| Russia | | | | | 133,526,173 | | | | 195,689,165 | |
Purchases and sales of long-term U.S. government securities not included above were as follows:
| | | | Purchases
| | Sales
|
|---|
| Global Bond | | | | $ | 1,562,400,243 | | | $ | 1,558,110,226 | |
NOTE 4 — REDEMPTION FEES
A 2% redemption fee is charged on shares of Russia that are redeemed (including in connection with an exchange) within 365 days or less from their date of purchase. The redemption fee is recorded as an addition to paid-in capital. Total redemption fee proceeds for the years ended October 31, 2011 and 2010 were $217,940 and $374,780, respectively, and are set forth in the Statements of Changes in Net Assets.
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
Each of the Funds has entered into an investment management agreement (“Management Agreements”) with ING Investments, LLC (“ING Investments” or “Investment Adviser”). The Management Agreements compensate the Investment Adviser with a fee based on the average daily net assets of each Fund, at the following annual rates:
| | | | As a Percentage of Average
Daily Net Assets
|
|---|
| Diversified International | | | | 0.00% |
Emerging Countries(1) | | | | 1.00% |
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NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
| | | | As a Percentage of Average
Daily Net Assets
|
|---|
| Emerging Markets Equity | | | | 1.00% |
| Global Bond | | | | 0.40% |
| Global Equity Dividend | | | | 0.70% |
| Global Natural Resources | | | | 1.00% on first $50 million; and 0.75% thereafter |
| Global Opportunities | | | | 0.90% on the first $500 million; and 0.85% thereafter |
| Global Real Estate | | | | 0.80% on the first $250 million; 0.775% on the next $250 million; and 0.70% thereafter |
| Global Value Choice | | | | 0.90% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter |
| 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(2) | | | | 0.85% on the first $500 million; 0.80% on the next $500 million; and 0.75% thereafter |
| International Core | | | | 0.75% |
| International Growth | | | | 0.75% |
| International Real Estate | | | | 1.00% on the first $250 million; 0.90% on the next $250 million; and 0.80% thereafter |
International SmallCap Multi-Manager(2) | | | | 1.00% on first $500 million; 0.90% on next $500 million; and 0.85% thereafter |
International Value Choice(4) | | | | 1.00% |
International Value(2),(3) | | | | 1.00% on the first $1.5 billion; 0.70% on the next $750 million; and 0.65% thereafter (applied to all assets of the Fund) |
| Russia | | | | 1.25% |
(1) | | Effective January 1, 2011, the advisory fee for Emerging Countries was revised from 1.25% to the fee set forth in the table above and the sharing waiver was eliminated. |
(2) | | ING Investments has contractually agreed to waive a portion of the advisory fee for International Capital Appreciation, International SmallCap Multi-Manager and International Value. These advisory fee waivers will continue through at least March 1, 2012 for International Capital Appreciation, International SmallCap Multi-Manager and International Value. There is no guarantee that these waivers will continue after this date. These agreements will only renew if ING Investments elects to renew them. |
(3) | | Effective February 1, 2011, the advisory fees for International Value were revised from 1.00% on the first $5 billion; 0.95% on the next $2.5 billion; 0.90% on the next $2.5 billion and 0.85% of assets in excess of $10 billion to the fees set forth in the table above. |
(4) | | Pursuant to a side agreement, ING Investments has agreed to waive 0.10% of the advisory fee for International Value Choice through March 1, 2012 for the Fund. There is no guarantee that this waiver will continue after that date. The waiver 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 International Capital Appreciation, International SmallCap Multi-Manager and International Value. Previously, ING Investments had agreed to waive a portion of the advisory fee for Emerging Countries. This waiver expired on January 1, 2011. The waiver is calculated as 50% of the difference between the former sub-advisory fee rate minus the new sub-advisory fee.
For the year ended October 31, 2011, ING Investments waived $64,622, $20,711, $86,807, $127,337 and $49,138 in advisory fees for Emerging Countries, International Capital Appreciation, International SmallCap Multi-Manager, International Value and International Value Choice, respectively.
Each of the Funds has entered into a sub-advisory agreement with each sub-adviser. These sub-advisers provide investment advice for the various Funds and are paid by the Investment Adviser based on the average daily net assets of the respective Funds. The sub-adviser of each of the Funds are as follows (*denotes a related party sub-adviser or sub-advisers):
Fund
| | | | Sub Adviser
|
|---|
| Emerging Countries | | | | ING Investment Management Advisors B.V* |
| Emerging Markets Equity | | | | J.P. Morgan Investment Management Inc. and Delaware Management Company |
| Global Bond | | | | ING Investment Management Co.* |
| Global Equity Dividend | | | | ING Investment Management Advisors B.V* |
| Global Natural Resources | | | | ING Investment Management Co.* |
| Global Opportunities | | | | ING Investment Management Advisors B.V.* |
| Global Real Estate | | | | CBRE Clarion Securities LLC |
| Global Value Choice | | | | Tradewinds Global Investors, LLC |
| Greater China | | | | ING Investment Management Asia/Pacific (Hong Kong) Limited* |
| Index Plus International Equity | | | | ING Investment Management Co.* |
| International Capital Appreciation | | | | Hansberger Global Investors, Inc. |
| International Core | | | | Thornburg Investment Management, Inc. and Wellington Management Company, LLP |
| International Growth | | | | Baillie Gifford Overseas Limited and T. Rowe Price Associates, Inc. |
| International Real Estate | | | | CBRE Clarion Securities LLC |
| International SmallCap Multi-Manager | | | | Acadian Asset Management LLC and Schroder Investment Management North America Inc. |
| International Value Choice | | | | Tradewinds Global Investors, LLC |
| International Value | | | | Brandes Investment Partners, L.P., del Rey Global Investors, LLC and ING Investment Management Co.* |
| Russia | | | | ING Investment Management Advisors B.V* |
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
96
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)
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.
During the period, ING Funds were 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, 2011, the following funds waived such management fees which are not subject to recoupment:
| Global Bond | | | | $ | 762 | |
| Global Natural Resources | | | | | 247 | |
| Global Real Estate | | | | | 4,788 | |
| Global Value Choice | | | | | 999 | |
| Index Plus International Equity | | | | | 47 | |
| International SmallCap Multi-Manager | | | | | 217 | |
| International Value Choice | | | | | 94 | |
| International Value | | | | | 1,185 | |
Effective December 20, 2010, ING Institutional Prime Money Market Fund was liquidated. As a result of this liquidation, the Funds will no longer invest end-of-day cash balances into ING Institutional Prime Money Market Fund.
ING Funds Services, LLC (the “Administrator”), serves as administrator to each Fund. The Funds pay the Administrator a fee calculated at an annual rate of 0.10% of each Fund’s average daily net assets.
The Investment Adviser, ING IM, IIMA, ING Investment Management Asia/Pacific (Hong Kong) Limited and the Administrator are indirect, wholly-owned subsidiaries of ING Groep N.V. (“ING Groep”). ING Groep is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services.
ING Groep has adopted a formal restructuring plan that was approved by the European Commission in November 2009 under which the ING life insurance businesses, including the retirement services and investment management businesses, which include the Investment Adviser and its affiliates, would be separated from ING Groep by the end of 2013. To achieve this goal, ING Groep announced in November 2010 that it plans to pursue two separate initial public offerings: one a U.S. focused offering that would include U.S. based insurance, retirement services, and investment management operations; and the other a European based offering for European and Asian based insurance and investment management operations. There can be no assurance that the restructuring plan will be carried out through two offerings or at all.
The restructuring plan and the uncertainty about its implementation, whether implemented through the planned public offerings or through other means, in whole or in part, may be disruptive to the businesses of ING entities, including the ING entities that service the Funds, and may cause, among other things, interruption or reduction of business and services, diversion of management’s attention from day-to day operations, and loss of key employees or customers. A failure to complete the offerings or other means of implementation on favorable terms could have a material adverse impact on the operations of the businesses subject to the restructuring plan. The restructuring plan may result in the Investment Adviser’s loss of access to services and resources of ING Groep, which could adversely affect its businesses and profitability. In addition, the divestment of ING businesses, including the Investment Adviser, may potentially be deemed a “change of control” of each entity. A change of control would result in the termination of the Funds’ advisory and sub-advisory agreements, which would trigger the necessity for new agreements that would require approval of the Board, and may trigger the need for shareholder approval. Currently, the Investment Adviser does not anticipate that the restructuring will have a material adverse impact on the Funds or their operations and administration.
NOTE 6 — DISTRIBUTION AND SERVICE FEES
Each share class of the Funds, except Class I and Class W, has adopted a Plan pursuant to Rule 12b-1 under the 1940 Act (the “12b-1 Plans”), whereby ING Investments Distributor, LLC (“IID” or the “Distributor”), an indirect, wholly-owned subsidiary of ING Groep, is reimbursed or compensated (depending on the class of shares) by the Funds for expenses incurred in the distribution of each Fund’s shares (“Distribution Fees”). Pursuant to the 12b-1 Plans, the Distributor is entitled to a payment each month for expenses incurred in the distribution and promotion of each Fund’s shares, including expenses incurred in printing prospectuses and reports used for sales purposes, expenses incurred in preparing and printing sales literature and other such distribution related expenses, including any distribution or shareholder servicing fees (“Service Fees”) paid to
97
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 6 — DISTRIBUTION AND SERVICE FEES (continued)
securities dealers who have executed a distribution agreement with the Distributor. Under the 12b-1 Plans, each class of shares of a Fund pays the Distributor a Distribution and/or Service Fee based on average daily net assets at the following annual rates:
| | | | Class A
| | Class B
| | Class C
| | Class O
| | Class R
|
|---|
| Diversified International | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | 0.50 | % |
| Emerging Countries | | | | | 0.35 | %(1) | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Emerging Markets Equity | | | | | 0.25 | % | | | N/A | | | | 1.00 | % | | | N/A | | | | 0.50 | % |
| Global Bond | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | 0.50 | % |
| Global Equity Dividend | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| Global Natural Resources | | | | | 0.25 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Global Opportunities | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Global Real Estate | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | 0.50 | % |
| Global Value Choice | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Greater China | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| Index Plus International Equity | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| International Capital Appreciation | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| International Real Estate | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| International SmallCap Multi-Manager | | | | | 0.35 | % | | | 1.00 | % | | | 1.00 | % | | | 0.25 | % | | | N/A | |
| International Value Choice | | | | | 0.25 | % | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| International Value | | | | | 0.30 | % | | | 1.00 | % | | | 1.00 | % | | | N/A | | | | N/A | |
| Russia | | | | | 0.25 | % | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
(1) | | The Distributor has agreed to waive 0.10% of the Distribution Fee for Class A shares of Emerging Countries through March 1, 2012. For the one year ended October 31, 2011, the Distributor waived $75,931 for Class A shares of Emerging Countries. |
The Distributor also receives the proceeds of the initial sales charge paid by shareholders upon the purchase of Class A shares, and the contingent deferred sales charge paid by shareholders upon certain redemptions for Class A and Class C shares. For the year ended October 31, 2011, the Distributor retained the following amounts in sales charges for the Funds:
| | | | Class A
Shares
| | Class C
Shares
|
|---|
Initial Sales Charges: | | | | | | | | | | |
| Diversified International | | | | $ | 4,341 | | | | N/A | |
| Emerging Countries | | | | | 7,868 | | | | N/A | |
| Emerging Markets Equity | | | | | 32 | | | | N/A | |
| Global Bond | | | | | 37,274 | | | | N/A | |
| Global Equity Dividend | | | | | 6,173 | | | | N/A | |
| Global Natural Resources | | | | | 50,050 | | | | N/A | |
| Global Opportunities | | | | | 1,690 | | | | N/A | |
| Global Real Estate | | | | | 146,459 | | | | N/A | |
| Global Value Choice | | | | | 133,135 | | | | N/A | |
| Greater China | | | | | 10,798 | | | | N/A | |
| Index Plus International Equity | | | | | 755 | | | | N/A | |
| International Capital Appreciation | | | | | 1,225 | | | | N/A | |
| International Real Estate | | | | | 10,318 | | | | N/A | |
| International SmallCap Multi-Manager | | | | | 2,831 | | | | N/A | |
| International Value Choice | | | | | 2,633 | | | | N/A | |
| International Value | | | | | 2,709 | | | | N/A | |
| Russia | | | | | 142,254 | | | | N/A | |
| |
Contingent Deferred Sales Charges: |
| Diversified International | | | | | 61 | | | $ | 1,684 | |
| Emerging Countries | | | | | 4 | | | | 304 | |
| Global Bond | | | | | 1 | | | | 10,907 | |
| Global Equity Dividend | | | | | — | | | | 647 | |
| Global Opportunities | | | | | 520 | | | | 601 | |
| Global Real Estate | | | | | 1,332 | | | | 12,090 | |
| Global Value Choice | | | | | 525 | | | | 4,575 | |
| Greater China | | | | | — | | | | 313 | |
| Index Plus International Equity | | | | | — | | | | 4 | |
| International Capital Appreciation | | | | | 178 | | | | 244 | |
| International Real Estate | | | | | 253 | | | | 870 | |
| International SmallCap Multi-Manager | | | | | — | | | | 642 | |
| International Value Choice | | | | | — | | | | 84 | |
| International Value | | | | | 1,492 | | | | 1,076 | |
| Russia | | | | | 553 | | | | — | |
The Distributor also receives the proceeds of the initial sales charge paid by shareholders upon the purchase of Class A shares, and the contingent deferred sales charge paid by shareholders upon certain redemptions for Class A and Class C shares. For the year ended October 31, 2011, the Distributor retained the following amounts in sales charges for the Funds:
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
At October 31, 2011, the Funds had the following amounts recorded as payable to affiliates on the accompanying Statements of Assets and Liabilities (See Notes 5 and 6):
Fund
| | | | Accrued Unified/
Investment
Management Fees
| | Accrued
Administrative Fees
| | Accrued
Shareholder
Service and
Distribution Fees
| | Total
|
|---|
| |
| Diversified International | | | | $ | 107,515 | | | $ | 10,561 | | | $ | 53,956 | | | $ | 172,032 | |
| Emerging Countries | | | | | 79,544 | | | | 7,955 | | | | 22,471 | | | | 109,970 | |
| Emerging Markets Equity | | | | | 46,471 | | | | 4,647 | | | | 4 | | | | 51,122 | |
| Global Bond | | | | | 208,906 | | | | 52,226 | | | | 131,288 | | | | 392,420 | |
| Global Equity Dividend | | | | | 58,700 | | | | 6,668 | | | | 33,259 | | | | 98,627 | |
| Global Natural Resources | | | | | 78,434 | | | | 9,042 | | | | 21,255 | | | | 108,731 | |
98
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (continued)
Fund
| | | | Accrued Unified/
Investment
Management Fees
| | Accrued
Administrative Fees
| | Accrued
Shareholder
Service and
Distribution Fees
| | Total
|
|---|
| Global Opportunities | | | | $ | 85,550 | | | $ | 5,502 | | | $ | 31,616 | | | $ | 122,668 | |
| Global Real Estate | | | | | 1,985,777 | | | | 278,371 | | | | 428,694 | | | | 2,692,842 | |
| Global Value Choice | | | | | 469,198 | | | | 53,341 | | | | 165,560 | | | | 688,099 | |
| Greater China | | | | | 54,597 | | | | 2,685 | | | | 9,906 | | | | 67,188 | |
| Index Plus International Equity | | | | | 43,101 | | | | 7,836 | | | | 10,689 | | | | 61,626 | |
| International Capital Appreciation | | | | | 25,812 | | | | 3,036 | | | | 8,999 | | | | 37,847 | |
| International Core | | | | | 215,305 | | | | 28,707 | | | | — | | | | 244,012 | |
| International Growth | | | | | 93,607 | | | | 12,481 | | | | — | | | | 106,088 | |
| International Real Estate | | | | | 373,572 | | | | 39,148 | | | | 56,361 | | | | 469,081 | |
| International SmallCap Multi-Manager | | | | | 256,353 | | | | 25,635 | | | | 51,106 | | | | 333,094 | |
| International Value Choice | | | | | 23,434 | | | | 2,604 | | | | 8,591 | | | | 34,629 | |
| International Value | | | | | 608,511 | | | | 60,851 | | | | 193,511 | | | | 862,873 | |
| Russia | | | | | 320,873 | | | | 25,670 | | | | 62,059 | | | | 408,602 | |
At October 31, 2011, the following indirect, wholly owned subsidiaries of ING Groep owned more than 5% of the following Funds:
ING Portfolios or Subsidiaries
| | | | Fund
| | Percentage
|
|---|
| ING Capital Allocation Fund | | | | Index Plus International Equity | | | 29.54 | % |
| ING Direct Investing Inc. | | | | Global Equity Dividend | | | 16.09 | % |
| | | | | Greater China | | | 13.83 | % |
| | | | | Index Plus International Equity | | | 39.47 | % |
| Diversified International | | | | International Core | | | 11.10 | % |
| | | | | International Growth | | | 17.14 | % |
| ING Global Target Payment Fund | | | | Index Plus International Equity | | | 16.72 | % |
| ING Life Insurance & Annuity Company | | | | International Smallcap Multi Manager | | | 7.81 | % |
| ING National Trust | | | | International Capital Appreciation | | | 18.71 | % |
| | | | | International Value | | | 12.01 | % |
| ING Solution 2015 Portfolio | | | | Global Bond | | | 6.11 | % |
| | | | | International Core | | | 10.63 | % |
| | | | | International Growth | | | 9.87 | % |
| ING Solution 2025 Portfolio | | | | Global Bond | | | 9.81 | % |
| | | | | International Core | | | 27.33 | % |
| | | | | International Growth | | | 23.78 | % |
| ING Solution 2035 Portfolio | | | | International Core | | | 29.13 | % |
| | | | | International Growth | | | 27.03 | % |
| ING Solution 2045 Portfolio | | | | International Core | | | 18.78 | % |
| | | | | International Growth | | | 17.44 | % |
| Reliastar Life Insurance Company | | | | Emerging Markets Equity | | | 41.85 | % |
| Reliance Trust Company | | | | Emerging Countries | | | 6.82 | % |
| | | | | International Capital Appreciation | | | 12.88 | % |
Control is defined by the 1940 Act as the beneficial ownership, either directly or through one or more controlled companies, of more than 25% of the voting securities of a company. The 1940 Act defines affiliates to include companies that are under common control. Therefore, because certain Funds have a common owner that owns over 25% of the outstanding securities of the Funds, they may be deemed to be affiliates of each other. Investment activities of these shareholders could have a material impact on the Funds.
The Investment Adviser may request that the Funds’ portfolio managers use their best efforts (subject to obtaining best execution of each transaction) to allocate a portfolio’s equity security transactions through certain designated broker-dealers. The designated broker-dealer, in turn, will reimburse a portion of the brokerage commissions to pay certain expenses of that Fund. Any amount credited to a Fund in the Statements of Operations is recognized as brokerage commission recapture.
The Funds have adopted a Deferred Compensation Plan (the “Plan”), which allows eligible non-affiliated trustees as described in the Plan to defer the receipt of all or a portion of the trustees fees payable. Amounts deferred are treated as though invested in various “notional” funds advised by ING Investments until distribution in accordance with the Plan.
NOTE 8 — OTHER ACCRUED EXPENSES AND LIABILITIES
At October 31, 2011, the Funds had the following payables included in Other Accrued Expenses and Liabilities on the Statements of Assets and Liabilities that exceeded 5% of total liabilities:
Fund
| | | | Accrued Expenses
| | Amount
|
|---|
| International Real Estate | | | | Custody | | $ | 94,434 | |
| | | | | Transfer Agent | | | 86,311 | |
| International Value Choice | | | | Transfer Agent | | | 16,535 | |
| | | | | Professional | | | 9,990 | |
| | | | | Postage | | | 11,512 | |
NOTE 9 — EXPENSE LIMITATION AGREEMENTS
The Investment Adviser and/or Distributor have agreed to limit expenses, excluding interest expense, taxes, brokerage commissions and extraordinary expenses
99
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 9 — EXPENSE LIMITATION AGREEMENTS (continued)
(and acquired fund fees and expenses) to the levels listed below:Maximum Operating Expense Limit (as a percentage of average net assets)
| | | | Class A
| | Class B
| | Class C
| | Class I
| | Class O
| | Class R
| | Class W
|
|---|
Diversified International(1) | | | | | 0.50 | % | | | 1.25 | % | | | 1.25 | % | | | 0.25 | % | | | 0.50 | % | | | 0.75 | % | | | 0.25 | % |
Emerging Countries(2) | | | | | 2.25 | % | | | 2.90 | % | | | 2.90 | % | | | 1.75 | % | | | N/A | | | | N/A | | | | 1.90 | % |
| Emerging Markets Equity | | | | | 1.60 | % | | | N/A | | | | 2.35 | % | | | 1.35% | (8) | | | N/A | | | | 1.85 | % | | | 1.35 | % |
| Global Bond | | | | | 0.90 | % | | | 1.65 | % | | | 1.65 | % | | | 0.61 | % | | | 0.90 | % | | | 1.15 | % | | | 0.65 | % |
| Global Equity Dividend | | | | | 1.40 | % | | | 2.15 | % | | | 2.15 | % | | | 1.15 | % | | | 1.40 | % | | | N/A | | | | 1.15 | % |
Global Natural Resources(3) | | | | | 2.00 | % | | | N/A | | | | N/A | | | | 1.75 | % | | | N/A | | | | N/A | | | | 1.75 | % |
Global Opportunities(4) | | | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.15 | % | | | N/A | | | | N/A | | | | 1.25 | % |
Global Real Estate(5) | | | | | 1.75 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | 1.75 | % | | | 2.00 | % | | | 1.50 | % |
| Global Value Choice | | | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | 1.25 | % |
Greater China(6) | | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
| Index Plus International Equity | | | | | 1.15 | % | | | 1.90 | % | | | 1.90 | % | | | 0.90 | % | | | 1.15 | % | | | N/A | | | | 0.90 | % |
| International Capital Appreciation | | | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | 1.25 | % |
| International Core | | | | | N/A | | | | N/A | | | | N/A | | | | 0.95 | % | | | N/A | | | | N/A | | | | N/A | |
| International Growth | | | | | N/A | | | | N/A | | | | N/A | | | | 0.99 | % | | | N/A | | | | N/A | | | | N/A | |
| International Real Estate | | | | | 1.50 | % | | | 2.25 | % | | | 2.25 | % | | | 1.25 | % | | | N/A | | | | N/A | | | | 1.25 | % |
| International SmallCap Multi-Manager | | | | | 1.95 | % | | | 2.60 | % | | | 2.60 | % | | | 1.40 | % | | | 1.85 | % | | | N/A | | | | 1.60 | % |
International Value Choice(7) | | | | | 1.70 | % | | | 2.45 | % | | | 2.45 | % | | | 1.45 | % | | | N/A | | | | N/A | | | | 1.45 | % |
| International Value | | | | | 1.80 | % | | | 2.50 | % | | | 2.50 | % | | | 1.50 | % | | | N/A | | | | N/A | | | | 1.50 | % |
| Russia | | | | | 2.75 | % | | | N/A | | | | N/A | | | | 2.50 | % | | | N/A | | | | N/A | | | | 2.50 | % |
(1) | | 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. Including the expenses of the underlying investment companies, the expense limits for Diversified International are 1.65%, 2.40%, 2.40%, 1.40%, 1.65%, 1.90% and 1.40% for Class A, B, C, I, O, R and W shares, respectively. |
(2) | | Pursuant to a side agreement, ING Investments has lowered the expense limits for Emerging Countries through at least March 1, 2012. The expense limits for Emerging Countries are 1.85%, 2.60%, 2.60%, 1.50% and 1.65% for Class A, B, C, I and W shares, respectively. If, after March 1, 2012, ING Investments elects not to renew the side agreement, the expense limits will revert to the limits listed in the table above. There is no guarantee that this side agreement will continue after that date. The side agreement will only renew if ING Investments elects to renew it. Any fees waived pursuant to the side agreement shall not be eligible for recoupment. |
(3) | | Pursuant to a side agreement, ING Investments has lowered the expense limits for Global Natural Resources through at least March 1, 2012. The expense limits for Global Natural Resources are 1.85%, 1.60% and 1.60% for Class A, I and W shares, respectively. If, after March 1, 2012, 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. |
(4) | | Pursuant to a side agreement, ING Investments has lowered the expense limit for Global Opportunities to 1.05% for Class I shares through at least March 1, 2012. If, after March 1, 2012, ING Investments elects not to renew the side agreement, the expense limit will revert to the limit 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. |
(5) | | Pursuant to a side agreement, ING Investments has lowered the expense limits for Global Real Estate through at least March 1, 2012. The expense limits for Global Real Estate are 1.65%, 2.40%, 2.40%, 1.40%, 1.65%, 1.90% and 1.40% for Class A, B, C, I, O, R and W shares, respectively. If, after March 1, 2012, 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. |
(6) | | Pursuant to a side agreement, the expense limits for Greater China are 2.10%, 2.85%, 2.85%, 1.85%, 1.85% and 2.10% for Class A, B, C, I, W and O shares, respectively, through March 1, 2012. There is no guarantee that this side agreement will continue after that date. This side agreement will only renew if ING Investments elects to renew it. Any fees waived pursuant to the side agreement shall not be eligible for recoupment. |
(7) | | Pursuant to a side agreement, the expense limits for International Value Choice are 1.60%, 2.35%, 2.35%, 1.35% and 1.35% for Class A, B, C, I and W shares, respectively, through March 1, 2012. If after March 1, 2012, 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. |
(8) | | Pursuant to a side agreement, ING Investments has lowered the expense limit for Class I shares of Emerging Markets Equity to 1.25% through at least March 1, 2013. If, after March 1, 2013, 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. |
The Investment Adviser may at a later date recoup from a Fund management and/or class specific fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, a Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations for each Fund. Amounts payable by the Investment Adviser are reflected on the accompanying Statements of Assets and Liabilities for each Fund.
As of October 31, 2011, the amounts of waived or reimbursed fees that are subject to possible
100
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 9 — EXPENSE LIMITATION AGREEMENTS (continued)
recoupment by the Investment Adviser, and the related expiration dates, are as follows: | | | | 2012
| | 2013
| | 2014
| | Total
|
|---|
| Diversified International | | | | $ | 786,289 | | | $ | 472,043 | | | $ | 51,924 | | | $ | 1,310,256 | |
| Emerging Markets Equity | | | | | — | | | | — | | | | 12,272 | | | | 12,272 | |
| Global Bond | | | | | 272,426 | | | | 365,110 | | | | 307,563 | | | | 945,099 | |
| Global Equity Dividend | | | | | 172,058 | | | | — | | | | 18,968 | | | | 191,026 | |
| Global Opportunities | | | | | — | | | | — | | | | 198,874 | | | | 198,874 | |
| Index Plus International Equity | | | | | 22,838 | | | | 22,288 | | | | 358,140 | | | | 403,266 | |
| International Capital Appreciation | | | | | 25,287 | | | | 193,638 | | | | 142,613 | | | | 361,538 | |
| International Core | | | | | — | | | | — | | | | 111,853 | | | | 111,853 | |
| International Growth | | | | | — | | | | — | | | | 97,201 | | | | 97,201 | |
In addition to the above waived or reimbursed fees, the amount of class specific fees waived or reimbursed that are subject to possible recoupment by the Investment Adviser, and the related expiration dates, as of October 31, 2011, are as follows:
| | | | 2012
| | 2013
| | 2014
| | Total
|
|---|
| Diversified International | | | | | | | | | | | | | | | | | | |
| Class A | | | | $ | 39,041 | | | $ | 13,391 | | | $ | 121,634 | | | $ | 174,066 | |
| Class B | | | | | 5,755 | | | | 2,176 | | | | 19,366 | | | | 27,297 | |
| Class C | | | | | 21,656 | | | | 7,365 | | | | 71,599 | | | | 100,620 | |
| Class O | | | | | 1,830 | | | | 1,800 | | | | 4,761 | | | | 8,391 | |
| Class R | | | | | 54 | | | | 21 | | | | 226 | | | | 301 | |
| Class W | | | | | 2,307 | | | | 1,912 | | | | 3,017 | | | | 7,236 | |
| Global Opportunities | | | | | | | | | | | | | | | | | | |
| Class A | | | | $ | 60,601 | | | $ | 50,223 | | | $ | — | | | $ | 110,824 | |
| Class B | | | | | 8,618 | | | | 8,058 | | | | — | | | | 16,676 | |
| Class C | | | | | 47,861 | | | | 43,870 | | | | — | | | | 91,731 | |
| Global Opportunities (continued) | | | | | | | | | | | | | | | | | | |
| Class I | | | | $ | — | | | $ | — | | | $ | 9,671 | | | $ | 9,671 | |
| Class W | | | | | — | | | | 1,125 | | | | — | | | | 1,125 | |
| Index Plus International Equity | | | | | | | | | | | | | | | | | | |
| Class A | | | | $ | 30,515 | | | $ | 11,667 | | | $ | — | | | $ | 42,182 | |
| Class B | | | | | 4,392 | | | | 1,268 | | | | — | | | | 5,660 | |
| Class C | | | | | 4,534 | | | | 1,761 | | | | — | | | | 6,295 | |
| Class O | | | | | 146,637 | | | | 60,711 | | | | — | | | | 207,348 | |
| International Real Estate | | | | | | | | | | | | | | | | | | |
| Class A | | | | $ | 158,438 | | | $ | 405 | | | $ | — | | | $ | 158,843 | |
| Class B | | | | | 6,996 | | | | 96 | | | | — | | | | 7,092 | |
| Class C | | | | | 51,655 | | | | 612 | | | | — | | | | 52,267 | |
| International Value Choice | | | | | | | | | | | | | | | | | | |
| Class A | | | | $ | 13,778 | | | $ | 15,874 | | | $ | 27,795 | | | $ | 57,447 | |
| Class B | | | | | 2,169 | | | | 1,164 | | | | 910 | | | | 4,243 | |
| Class C | | | | | 3,921 | | | | 3,756 | | | | 6,165 | | | | 13,842 | |
| Class W | | | | | — | | | | 21 | | | | 90 | | | | 111 | |
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 — PURCHASED AND WRITTEN OPTIONS
Transactions in purchased foreign currency options for Global Bond for the year ended October 31, 2011 were as follows:
| | | | EUR
Notional
| | Cost
|
|---|
| Balance at 10/31/10 | | | | | — | | | $ | — | |
| Options Purchased | | | | | 81,900,000 | | | | 1,792,934 | |
| Options Terminated in Closing Sell Transactions | | | | | (25,300,000 | ) | | | (500,907 | ) |
| Options Expired | | | | | (45,000,000 | ) | | | (943,649 | ) |
| Balance at 10/31/11 | | | | | 11,600,000 | | | $ | 348,378 | |
Transactions in purchased foreign currency options for Global Bond for the year ended October 31, 2011 were as follows:
| | | | USD
Notional
| | Cost
|
|---|
| Balance at 10/31/10 | | | | | 155,000,000 | | | $ | 2,192,817 | |
| Options Purchased | | | | | 1,263,800,000 | | | | 12,580,894 | |
| Options Terminated in Closing Sell Transactions | | | | | — | | | | — | |
| Options Expired | | | | | (1,277,000,000 | ) | | | (12,605,397 | ) |
| Balance at 10/31/11 | | | | | 141,800,000 | | | $ | 2,168,314 | |
Transactions in purchased futures options for Global Bond for the year ended October 31, 2011 were as follows:
| | | | Number of
Contracts
| | Cost
|
|---|
| Balance at 10/31/10 | | | | | — | | | $ | — | |
| Options Purchased | | | | | 491 | | | | 385,555 | |
| Options Terminated in Closing Sell Transactions | | | | | (491 | ) | | | (385,555 | ) |
| Options Expired | | | | | — | | | | — | |
| Balance at 10/31/11 | | | | | — | | | $ | — | |
Transactions in purchased interest rate swaptions for Global Bond for the year ended October 31, 2011 were as follows:
| | | | Number of
Contracts
| | Cost
|
|---|
| Balance at 10/31/10 | | | | | — | | | $ | — | |
| Options Purchased | | | | | 34,275,000 | | | | 119,963 | |
| Options Terminated in Closing Sell Transactions | | | | | (34,275,000 | ) | | | (119,963 | ) |
| Options Expired | | | | | — | | | | — | |
| Balance at 10/31/11 | | | | | — | | | $ | — | |
101
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 10 — PURCHASED AND WRITTEN OPTIONS (continued)
Transactions in written foreign currency options for Global Bond for the year ended October 31, 2011 were as follows:
| | | | EUR
Notional
| | Premiums
Received
|
|---|
| Balance at 10/31/10 | | | | | — | | | $ | — | |
| Options Written | | | | | 62,200,000 | | | | 1,646,969 | |
| Options Terminated in Closing Purchase Transactions | | | | | (25,300,000 | ) | | | (671,530 | ) |
| Options Expired | | | | | (25,300,000 | ) | | | (690,893 | ) |
| Balance at 10/31/11 | | | | | 11,600,000 | | | $ | 284,546 | |
Transactions in written foreign currency options for Global Bond for the year ended October 31, 2011 were as follows:
| | | | USD
Notional
| | Premiums
Received
|
|---|
| Balance at 10/31/10 | | | | | 206,800,000 | | | $ | 1,924,987 | |
| Options Written | | | | | 1,262,800,000 | | | | 11,120,681 | |
| Options Terminated in Closing Purchase Transactions | | | | | (186,000,000 | ) | | | (1,615,562 | ) |
| Options Expired | | | | | (1,173,000,000 | ) | | | (10,163,830 | ) |
| Balance at 10/31/11 | | | | | 110,600,000 | | | $ | 1,266,276 | |
Transactions in written futures options for Global Bond for the year ended October 31, 2011 were as follows:
| | | | Number of
Contracts
| | Premiums
Received
|
|---|
| Balance at 10/31/10 | | | | | — | | | $ | — | |
| Options Written | | | | | 491 | | | | 128,506 | |
| Options Terminated in Closing Purchase Transactions | | | | | (491 | ) | | | (128,506 | ) |
| Options Expired | | | | | — | | | | — | |
| Balance at 10/31/11 | | | | | — | | | $ | — | |
Transactions in written interest rate swaptions for Global Bond for the year ended October 31, 2011 were as follows:
| | | | Number of
Contracts
| | Premiums
Received
|
|---|
| Balance at 10/31/10 | | | | | — | | | $ | — | |
| Options Written | | | | | (34,275,000 | ) | | | (119,963 | ) |
| Options Terminated in Closing Purchase Transactions | | | | | 34,275,000 | | | | 119,963 | |
| Options Expired | | | | | — | | | | — | |
| Balance at 10/31/11 | | | | | — | | | $ | — | |
NOTE 11 — LINE OF CREDIT
With the exception of Emerging Markets Equity, all of the Funds included in this report, in addition to certain other funds managed by the Investment Adviser or an affiliate of the investment adviser, have entered into an unsecured committed revolving line of credit agreement (the “Credit Agreement”) with The Bank of New York Mellon (“BNY”) for an aggregate amount of $125,000,000. The proceeds may be used only to: (1) temporarily finance the purchase and sale of securities; or (2) finance the redemption of shares of an investor in the Funds. Effective May 27, 2011, the funds to which the line of credit is available pay a commitment fee equal to 0.08% per annum on the daily unused portion of the committed line amount payable quarterly in arrears. Prior to May 27, 2011, the funds to which the line of credit is available paid a commitment fee equal to 0.15% per annum on the daily unused portion of the committed line amount payable quarterly in arrears.
Generally, borrowings under the Credit Agreement accrue interest at the federal funds rate plus a specified margin. Repayments generally must be made within 60 days after the date of a revolving credit advance.
The following Funds utilized the line of credit during the year ended October 31, 2011:
Portfolio
| | | | Days
Utilized
| | Approximate
Average Daily
Balance For
Days Utilized
| | Approximate
Weighted
Average
Interest Rate
For Days
Utilized
|
|---|
| Emerging Countries | | | | | 46 | | | $ | 2,187,283 | | | | 1.30 | % |
| Global Bond | | | | | 47 | | | | 1,316,915 | | | | 1.37 | % |
| Global Equity Dividend | | | | | 15 | | | | 7,239,667 | | | | 1.36 | % |
| Global Natural Resources | | | | | 1 | | | | 925,000 | | | | 1.35 | % |
| Global Opportunities | | | | | 70 | | | | 1,424,000 | | | | 1.36 | % |
| Greater China | | | | | 7 | | | | 693,571 | | | | 1.40 | % |
| Index Plus International Equity | | | | | 26 | | | | 1,883,077 | | | | 1.37 | % |
| International Capital Appreciation | | | | | 26 | | | | 487,308 | | | | 1.42 | % |
| International Real Estate | | | | | 51 | | | | 2,272,843 | | | | 1.29 | % |
| International SmallCap Multi-Manager | | | | | 91 | | | | 1,452,714 | | | | 1.26 | % |
| International Value | | | | | 181 | | | | 2,483,039 | | | | 1.38 | % |
| Russia | | | | | 22 | | | | 4,453,182 | | | | 1.31 | % |
102
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 12 — CAPITAL SHARES
Transactions in capital shares and dollars were as follows:
Year or
| | | | Shares
sold
| | Shares
issued in
merger
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Payments from
Distribution
settlement/
affiliate
(Note 17)
| | Proceeds
from shares
issued in
merger
| | Reinvestment
of
distributions
| | Redemption
fee
proceeds
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
|
|---|
period ended
| | | | #
| | #
| | #
| | #
| | #
| | #
| | ($)
| | $
| | ($)
| | ($)
| | $
| | ($)
| | $
| | ($)
|
|---|
Diversified International |
Class A |
| 10/31/2011 | | | | | 790,343 | | | | — | | | | 90,062 | | | | (4,745,194 | ) | | | — | | | | (3,864,789 | ) | | | 7,627,783 | | | | — | | | | — | | | | 863,699 | | | | — | | | | (45,428,470 | ) | | | — | | | | (36,936,988 | ) |
| 10/31/2010 | | | | | 1,461,752 | | | | — | | | | 100,614 | | | | (6,298,412 | ) | | | — | | | | (4,736,046 | ) | | | 12,661,601 | | | | — | | | | — | | | | 873,328 | | | | — | | | | (54,252,662 | ) | | | — | | | | (40,717,733 | ) |
Class B |
| 10/31/2011 | | | | | 607 | | | | — | | | | 2,021 | | | | (605,231 | ) | | | — | | | | (602,603 | ) | | | 6,016 | | | | — | | | | — | | | | 19,384 | | | | — | | | | (5,756,366 | ) | | | — | | | | (5,730,966 | ) |
| 10/31/2010 | | | | | 23,616 | | | | — | | | | 2,543 | | | | (656,163 | ) | | | — | | | | (630,004 | ) | | | 203,485 | | | | — | | | | — | | | | 22,049 | | | | — | | | | (5,597,453 | ) | | | — | | | | (5,371,919 | ) |
Class C |
| 10/31/2011 | | | | | 194,020 | | | | — | | | | 8,099 | | | | (2,071,989 | ) | | | — | | | | (1,869,870 | ) | | | 1,836,873 | | | | — | | | | — | | | | 77,503 | | | | — | | | | (19,497,794 | ) | | | — | | | | (17,583,418 | ) |
| 10/31/2010 | | | | | 407,538 | | | | — | | | | 5,029 | | | | (2,790,681 | ) | | | — | | | | (2,378,114 | ) | | | 3,485,817 | | | | — | | | | — | | | | 43,547 | | | | — | | | | (23,814,316 | ) | | | — | | | | (20,284,952 | ) |
Class I |
| 10/31/2011 | | | | | 1,060,810 | | | | — | | | | 3,807 | | | | (661,463 | ) | | | — | | | | 403,154 | | | | 10,315,904 | | | | — | | | | — | | | | 36,391 | | | | — | | | | (6,155,133 | ) | | | — | | | | 4,197,162 | |
| 10/31/2010 | | | | | 1,277,026 | | | | — | | | | 3,793 | | | | (684,094 | ) | | | — | | | | 596,725 | | | | 11,308,009 | | | | — | | | | — | | | | 32,808 | | | | — | | | | (5,797,291 | ) | | | — | | | | 5,543,526 | |
Class O |
| 10/31/2011 | | | | | 209,526 | | | | — | | | | — | | | | (116,325 | ) | | | — | | | | 93,201 | | | | 1,989,309 | | | | — | | | | — | | | | — | | | | — | | | | (1,059,969 | ) | | | — | | | | 929,340 | |
| 10/31/2010 | | | | | 192,733 | | | | — | | | | — | | | | (107,174 | ) | | | — | | | | 85,559 | | | | 1,656,643 | | | | — | | | | — | | | | — | | | | — | | | | (908,188 | ) | | | — | | | | 748,455 | |
Class R |
| 10/31/2011 | | | | | — | | | | — | | | | 140 | | | | (2,802 | ) | | | — | | | | (2,662 | ) | | | — | | | | — | | | | — | | | | 1,332 | | | | — | | | | (27,610 | ) | | | — | | | | (26,278 | ) |
| 10/31/2010 | | | | | — | | | | — | | | | 143 | | | | (5,607 | ) | | | — | | | | (5,464 | ) | | | — | | | | — | | | | — | | | | 1,233 | | | | — | | | | (44,650 | ) | | | — | | | | (43,417 | ) |
Class W |
| 10/31/2011 | | | | | 66,855 | | | | — | | | | 3,496 | | | | (170,541 | ) | | | — | | | | (100,190 | ) | | | 587,373 | | | | — | | | | — | | | | 33,281 | | | | — | | | | (1,612,628 | ) | | | — | | | | (991,974 | ) |
| 10/31/2010 | | | | | 117,957 | | | | — | | | | 2,777 | | | | (166,936 | ) | | | — | | | | (46,202 | ) | | | 1,027,684 | | | | — | | | | — | | | | 23,940 | | | | — | | | | (1,384,104 | ) | | | — | | | | (332,480 | ) |
Emerging Countries |
Class A |
| 10/31/2011 | | | | | 152,170 | | | | — | | | | 60 | | | | (651,910 | ) | | | — | | | | (499,680 | ) | | | 4,411,448 | | | | — | | | | — | | | | 1,388 | | | | — | | | | (18,621,671 | ) | | | — | | | | (14,208,835 | ) |
| 10/31/2010 | | | | | 391,234 | | | | — | | | | — | | | | (677,274 | ) | | | — | | | | (286,040 | ) | | | 10,144,971 | | | | — | | | | — | | | | — | | | | — | | | | (17,371,829 | ) | | | — | | | | (7,226,858 | ) |
Class B |
| 10/31/2011 | | | | | 3,213 | | | | — | | | | 1 | | | | (61,760 | ) | | | — | | | | (58,546 | ) | | | 91,802 | | | | — | | | | — | | | | 36 | | | | — | | | | (1,758,758 | ) | | | — | | | | (1,666,920 | ) |
| 10/31/2010 | | | | | 9,310 | | | | — | | | | — | | | | (84,210 | ) | | | — | | | | (74,900 | ) | | | 241,118 | | | | — | | | | — | | | | — | | | | — | | | | (2,117,568 | ) | | | — | | | | (1,876,450 | ) |
Class C |
| 10/31/2011 | | | | | 30,879 | | | | — | | | | 11 | | | | (154,996 | ) | | | — | | | | (124,106 | ) | | | 813,881 | | | | — | | | | — | | | | 235 | | | | — | | | | (4,101,579 | ) | | | — | | | | (3,287,463 | ) |
| 10/31/2010 | | | | | 73,192 | | | | — | | | | — | | | | (244,887 | ) | | | — | | | | (171,695 | ) | | | 1,764,576 | | | | — | | | | — | | | | — | | | | — | | | | (5,865,221 | ) | | | — | | | | (4,100,645 | ) |
Class I |
| 10/31/2011 | | | | | 1,081,015 | | | | — | | | | 3,429 | | | | (3,241,619 | ) | | | — | | | | (2,157,175 | ) | | | 31,154,841 | | | | — | | | | — | | | | 103,143 | | | | — | | | | (82,565,009 | ) | | | — | | | | (51,307,025 | ) |
| 10/31/2010 | | | | | 2,259,040 | | | | — | | | | — | | | | (1,076,917 | ) | | | — | | | | 1,182,123 | | | | 60,266,679 | | | | — | | | | — | | | | — | | | | — | | | | (27,249,282 | ) | | | — | | | | 33,017,397 | |
Class Q(3) |
| 10/31/2011 | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| 10/31/2010 | | | | | 32,646 | | | | — | | | | — | | | | (91,200 | ) | | | (256,659 | ) | | | (315,213 | ) | | | 859,069 | | | | — | | | | — | | | | — | | | | — | | | | (2,418,652 | ) | | | (6,866,484 | ) | | | (8,426,067 | ) |
Class W |
| 10/31/2011 | | | | | 54,828 | | | | — | | | | 211 | | | | (136,623 | ) | | | — | | | | (81,584 | ) | | | 1,723,097 | | | | — | | | | — | | | | 6,626 | | | | — | | | | (4,155,675 | ) | | | — | | | | (2,425,952 | ) |
| 10/31/2010 | | | | | 39,306 | | | | — | | | | — | | | | (86,880 | ) | | | 254,590 | | | | 207,016 | | | | 1,086,722 | | | | — | | | | — | | | | — | | | | — | | | | (2,344,010 | ) | | | 6,866,484 | | | | 5,609,196 | |
Emerging Markets Equity |
Class A |
10/11/2011(1)-10/31/2011 | | | | | 1,965 | | | | — | | | | — | | | | (1 | ) | | | — | | | | 1,964 | | | | 19,841 | | | | — | | | | — | | | | — | | | | — | | | | (10 | ) | | | — | | | | 19,831 | |
Class C |
10/11/2011(1)-10/31/2011 | | | | | 302 | | | | — | | | | — | | | | (1 | ) | | | — | | | | 301 | | | | 3,020 | | | | — | | | | — | | | | — | | | | — | | | | (10 | ) | | | — | | | | 3,010 | |
Class I |
10/11/2011(1)-10/31/2011 | | | | | 8,629,474 | | | | — | | | | — | | | | (228,984 | ) | | | — | | | | 8,400,490 | | | | 86,341,357 | | | | — | | | | — | | | | — | | | | — | | | | (2,442,178 | ) | | | — | | | | 83,899,179 | |
Class R |
10/11/2011(1)-10/31/2011 | | | | | 302 | | | | — | | | | — | | | | (1 | ) | | | — | | | | 301 | | | | 3,020 | | | | — | | | | — | | | | — | | | | — | | | | (10 | ) | | | — | | | | 3,010 | |
Class W |
10/11/2011(1)-10/31/2011 | | | | | 302 | | | | — | | | | — | | | | (1 | ) | | | — | | | | 301 | | | | 3,020 | | | | — | | | | — | | | | — | | | | — | | | | (10 | ) | | | — | | | | 3,010 | |
| (1) | | Commencement of operations. |
| (3) | | Effective March 8, 2010, Class Q shareholders of Emerging Countries and International Capital Appreciation were converted to Class W shares of each respective Fund. |
103
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 12 — CAPITAL SHARES (continued)
Year or
| | | | Shares
sold
| | Shares
issued in
merger
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Payments from
Distribution
settlement/
affiliate
(Note 17)
| | Proceeds
from shares
issued in
merger
| | Reinvestment
of
distributions
| | Redemption
fee
proceeds
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
|
|---|
period ended
| | | | #
| | #
| | #
| | #
| | #
| | #
| | ($)
| | $
| | ($)
| | ($)
| | $
| | ($)
| | $
| | ($)
|
|---|
Global Bond |
Class A |
| 10/31/2011 | | | | | 14,837,384 | | | | — | | | | 940,858 | | | | (8,773,526 | ) | | | — | | | | 7,004,716 | | | | 176,621,769 | | | | — | | | | — | | | | 11,116,131 | | | | — | | | | (103,775,875 | ) | | | — | | | | 83,962,025 | |
| 10/31/2010 | | | | | 13,465,862 | | | | — | | | | 605,364 | | | | (6,875,428 | ) | | | — | | | | 7,195,798 | | | | 161,645,282 | | | | — | | | | — | | | | 7,244,781 | | | | — | | | | (81,981,963 | ) | | | — | | | | 86,908,100 | |
Class B |
| 10/31/2011 | | | | | 25,063 | | | | — | | | | 10,171 | | | | (194,167 | ) | | | — | | | | (158,933 | ) | | | 293,547 | | | | — | | | | — | | | | 119,021 | | | | — | | | | (2,285,314 | ) | | | — | | | | (1,872,746 | ) |
| 10/31/2010 | | | | | 118,350 | | | | — | | | | 16,671 | | | | (219,538 | ) | | | — | | | | (84,517 | ) | | | 1,409,240 | | | | — | | | | — | | | | 198,357 | | | | — | | | | (2,595,047 | ) | | | — | | | | (987,450 | ) |
Class C |
| 10/31/2011 | | | | | 2,435,405 | | | | — | | | | 249,324 | | | | (2,416,578 | ) | | | — | | | | 268,151 | | | | 28,754,106 | | | | — | | | | — | | | | 2,929,190 | | | | — | | | | (28,391,280 | ) | | | — | | | | 3,292,016 | |
| 10/31/2010 | | | | | 4,660,773 | | | | — | | | | 175,740 | | | | (1,206,636 | ) | | | — | | | | 3,629,877 | | | | 55,719,364 | | | | — | | | | — | | | | 2,096,768 | | | | — | | | | (14,299,244 | ) | | | — | | | | 43,516,888 | |
Class I |
| 10/31/2011 | | | | | 14,003,879 | | | | — | | | | 1,101,842 | | | | (11,781,300 | ) | | | — | | | | 3,324,421 | | | | 165,827,791 | | | | — | | | | — | | | | 12,984,986 | | | | — | | | | (138,649,671 | ) | | | — | | | | 40,163,106 | |
| 10/31/2010 | | | | | 12,403,809 | | | | — | | | | 863,246 | | | | (6,327,409 | ) | | | — | | | | 6,939,646 | | | | 147,582,012 | | | | — | | | | — | | | | 10,302,051 | | | | — | | | | (74,903,934 | ) | | | — | | | | 82,980,129 | |
Class O |
| 10/31/2011 | | | | | 174,442 | | | | — | | | | — | | | | (125,060 | ) | | | — | | | | 49,382 | | | | 2,039,436 | | | | — | | | | — | | | | — | | | | — | | | | (1,455,707 | ) | | | — | | | | 583,729 | |
| 10/31/2010 | | | | | 230,740 | | | | — | | | | 26 | | | | (194,721 | ) | | | — | | | | 36,045 | | | | 2,729,158 | | | | — | | | | — | | | | 304 | | | | — | | | | (2,281,700 | ) | | | — | | | | 447,762 | |
Class R |
8/5/2011(1)-10/31/2011 | | | | | 249 | | | | — | | | | — | | | | — | | | | — | | | | 249 | | | | 3,000 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,000 | |
Class W |
| 10/31/2011 | | | | | 1,541,709 | | | | — | | | | 77,641 | | | | (889,160 | ) | | | — | | | | 730,190 | | | | 18,139,074 | | | | — | | | | — | | | | 901,653 | | | | — | | | | (10,356,411 | ) | | | — | | | | 8,684,316 | |
| 10/31/2010 | | | | | 1,197,217 | | | | — | | | | 25,142 | | | | (182,411 | ) | | | — | | | | 1,039,948 | | | | 14,196,899 | | | | — | | | | — | | | | 295,702 | | | | — | | | | (2,144,700 | ) | | | — | | | | 12,347,901 | |
Global Equity Dividend |
Class A |
| 10/31/2011 | | | | | 500,530 | | | | — | | | | 69,470 | | | | (1,359,857 | ) | | | — | | | | (789,857 | ) | | | 5,322,885 | | | | — | | | | — | | | | 714,783 | | | | — | | | | (14,359,575 | ) | | | — | | | | (8,321,907 | ) |
| 10/31/2010 | | | | | 866,925 | | | | — | | | | 86,029 | | | | (1,812,822 | ) | | | — | | | | (859,868 | ) | | | 8,475,129 | | | | — | | | | — | | | | 826,073 | | | | — | | | | (17,858,240 | ) | | | — | | | | (8,557,038 | ) |
Class B |
| 10/31/2011 | | | | | 9,268 | | | | — | | | | 8,456 | | | | (498,877 | ) | | | — | | | | (481,153 | ) | | | 96,524 | | | | — | | | | — | | | | 87,101 | | | | — | | | | (5,286,367 | ) | | | — | | | | (5,102,742 | ) |
| 10/31/2010 | | | | | 35,025 | | | | — | | | | 17,471 | | | | (683,413 | ) | | | — | | | | (630,917 | ) | | | 342,001 | | | | — | | | | — | | | | 165,967 | | | | — | | | | (6,646,863 | ) | | | — | | | | (6,138,895 | ) |
Class C |
| 10/31/2011 | | | | | 214,192 | | | | — | | | | 24,967 | | | | (832,092 | ) | | | — | | | | (592,933 | ) | | | 2,264,204 | | | | — | | | | — | | | | 255,463 | | | | — | | | | (8,619,469 | ) | | | — | | | | (6,099,802 | ) |
| 10/31/2010 | | | | | 188,781 | | | | — | | | | 35,118 | | | | (1,459,491 | ) | | | — | | | | (1,235,592 | ) | | | 1,859,348 | | | | — | | | | — | | | | 332,680 | | | | — | | | | (14,234,997 | ) | | | — | | | | (12,042,969 | ) |
Class I |
| 10/31/2011 | | | | | 297,406 | | | | — | | | | 11,881 | | | | (1,185,723 | ) | | | — | | | | (876,436 | ) | | | 3,207,782 | | | | — | | | | — | | | | 125,874 | | | | — | | | | (13,016,981 | ) | | | — | | | | (9,683,325 | ) |
| 10/31/2010 | | | | | 1,198,519 | | | | — | | | | 12,480 | | | | (204,185 | ) | | | — | | | | 1,006,814 | | | | 11,619,730 | | | | — | | | | — | | | | 121,733 | | | | — | | | | (1,987,575 | ) | | | — | | | | 9,753,888 | |
Class O |
| 10/31/2011 | | | | | 182,639 | | | | — | | | | 1,235 | | | | (282,490 | ) | | | — | | | | (98,616 | ) | | | 1,915,918 | | | | — | | | | — | | | | 12,673 | | | | — | | | | (2,974,561 | ) | | | — | | | | (1,045,970 | ) |
| 10/31/2010 | | | | | 218,071 | | | | — | | | | 1,672 | | | | (377,480 | ) | | | — | | | | (157,737 | ) | | | 2,141,770 | | | | — | | | | — | | | | 16,065 | | | | — | | | | (3,735,705 | ) | | | — | | | | (1,577,870 | ) |
Class W |
| 10/31/2011 | | | | | 360,187 | | | | — | | | | 11,903 | | | | (3,567,775 | ) | | | — | | | | (3,195,685 | ) | | | 4,101,591 | | | | — | | | | — | | | | 135,782 | | | | — | | | | (41,886,837 | ) | | | — | | | | (37,649,464 | ) |
| 10/31/2010 | | | | | 1,658,473 | | | | — | | | | 52,701 | | | | (432,567 | ) | | | — | | | | 1,278,607 | | | | 17,752,111 | | | | — | | | | — | | | | 551,389 | | | | — | | | | (4,623,735 | ) | | | — | | | | 13,679,765 | |
Global Natural Resources |
Class A |
| 10/31/2011 | | | | | 1,896,425 | | | | — | | | | 4,458 | | | | (2,102,330 | ) | | | — | | | | (201,447 | ) | | | 19,501,873 | | | | — | | | | — | | | | 43,516 | | | | — | | | | (21,032,478 | ) | | | — | | | | (1,487,089 | ) |
| 10/31/2010 | | | | | 1,360,810 | | | | — | | | | 31,815 | | | | (2,599,161 | ) | | | — | | | | (1,206,536 | ) | | | 11,926,166 | | | | — | | | | — | | | | 260,562 | | | | — | | | | (21,434,666 | ) | | | — | | | | (9,877,938 | ) |
Class I |
| 10/31/2011 | | | | | 346,115 | | | | — | | | | 128 | | | | (157,521 | ) | | | — | | | | 188,722 | | | | 3,455,433 | | | | — | | | | — | | | | 1,253 | | | | — | | | | (1,568,677 | ) | | | — | | | | 1,888,009 | |
| 10/31/2010 | | | | | 758,038 | | | | — | | | | 495 | | | | (486,327 | ) | | | — | | | | 272,206 | | | | 6,403,842 | | | | — | | | | — | | | | 4,044 | | | | — | | | | (3,683,147 | ) | | | — | | | | 2,724,739 | |
Class W |
| 10/31/2011 | | | | | 219,268 | | | | — | | | | 23 | | | | (106,544 | ) | | | — | | | | 112,747 | | | | 2,994,657 | | | | — | | | | — | | | | 286 | | | | — | | | | (1,392,177 | ) | | | — | | | | 1,602,766 | |
| 10/31/2010 | | | | | 18,326 | | | | — | | | | 96 | | | | (3,258 | ) | | | — | | | | 15,164 | | | | 193,162 | | | | — | | | | — | | | | 986 | | | | — | | | | (33,692 | ) | | | — | | | | 160,456 | |
Global Opportunities |
Class A |
| 10/31/2011 | | | | | 394,079 | | | | — | | | | 74,951 | | | | (2,099,213 | ) | | | — | | | | (1,630,183 | ) | | | 5,729,924 | | | | — | | | | — | | | | 1,058,855 | | | | — | | | | (29,965,774 | ) | | | — | | | | (23,176,995 | ) |
| 10/31/2010 | | | | | 614,053 | | | | — | | | | — | | | | (3,972,450 | ) | | | — | | | | (3,358,397 | ) | | | 8,153,063 | | | | — | | | | — | | | | — | | | | — | | | | (52,591,257 | ) | | | — | | | | (44,438,194 | ) |
Class B |
| 10/31/2011 | | | | | 1,629 | | | | — | | | | 6,844 | | | | (305,512 | ) | | | — | | | | (297,039 | ) | | | 22,273 | | | | — | | | | — | | | | 92,973 | | | | — | | | | (4,201,481 | ) | | | — | | | | (4,086,235 | ) |
| 10/31/2010 | | | | | 1,570 | | | | — | | | | — | | | | (464,057 | ) | | | — | | | | (462,487 | ) | | | 21,114 | | | | — | | | | — | | | | — | | | | — | | | | (5,819,434 | ) | | | — | | | | (5,798,320 | ) |
| (1) | | Commencement of operations. |
104
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 12 — CAPITAL SHARES (continued)
Year or
| | | | Shares
sold
| | Shares
issued in
merger
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Payments from
Distribution
settlement/
affiliate
(Note 17)
| | Proceeds
from shares
issued in
merger
| | Reinvestment
of
distributions
| | Redemption
fee
proceeds
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
|
|---|
period ended
| | | | #
| | #
| | #
| | #
| | #
| | #
| | ($)
| | $
| | ($)
| | ($)
| | $
| | ($)
| | $
| | ($)
|
|---|
Global Opportunities (continued) |
Class C |
| 10/31/2011 | | | | | 44,579 | | | | — | | | | 36,650 | | | | (1,688,401 | ) | | | — | | | | (1,607,172 | ) | | | 615,566 | | | | — | | | | — | | | | 497,929 | | | | — | | | | (23,236,007 | ) | | | — | | | | (22,122,512 | ) |
| 10/31/2010 | | | | | 327,260 | | | | — | | | | — | | | | (2,866,616 | ) | | | — | | | | (2,539,356 | ) | | | 4,200,079 | | | | — | | | | — | | | | — | | | | — | | | | (36,057,889 | ) | | | — | | | | (31,857,810 | ) |
Class I |
| 10/31/2011 | | | | | 149,528 | | | | — | | | | 7,802 | | | | (510,535 | ) | | | — | | | | (353,205 | ) | | | 2,265,528 | | | | — | | | | — | | | | 112,177 | | | | — | | | | (7,480,912 | ) | | | — | | | | (5,103,207 | ) |
| 10/31/2010 | | | | | 698,191 | | | | — | | | | — | | | | (5,029,565 | ) | | | — | | | | (4,331,374 | ) | | | 9,920,604 | | | | — | | | | — | | | | — | | | | — | | | | (65,889,490 | ) | | | — | | | | (55,968,886 | ) |
Class Q(2) |
| 10/31/2011 | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| 10/31/2010 | | | | | — | | | | — | | | | — | | | | — | | | | (1,775 | ) | | | (1,775 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (24,700 | ) | | | (24,700 | ) |
Class W |
| 10/31/2011 | | | | | 616 | | | | — | | | | 278 | | | | (91,171 | ) | | | — | | | | (90,277 | ) | | | 10,091 | | | | — | | | | — | | | | 4,305 | | | | — | | | | (1,438,902 | ) | | | — | | | | (1,424,506 | ) |
| 10/31/2010 | | | | | 82,610 | | | | — | | | | — | | | | (28,018 | ) | | | 1,677 | | | | 56,269 | | | | 1,209,837 | | | | — | | | | — | | | | — | | | | — | | | | (389,991 | ) | | | 24,700 | | | | 844,546 | |
Global Real Estate |
Class A |
| 10/31/2011 | | | | | 35,678,698 | | | | — | | | | 2,539,908 | | | | (33,801,169 | ) | | | — | | | | 4,417,437 | | | | 583,010,229 | | | | — | | | | — | | | | 40,568,806 | | | | — | | | | (539,329,675 | ) | | | — | | | | 84,249,360 | |
| 10/31/2010 | | | | | 36,101,595 | | | | — | | | | 2,747,909 | | | | (28,902,801 | ) | | | — | | | | 9,946,703 | | | | 529,789,609 | | | | — | | | | — | | | | 40,220,542 | | | | — | | | | (426,260,118 | ) | | | — | | | | 143,750,033 | |
Class B |
| 10/31/2011 | | | | | 15,686 | | | | — | | | | 40,781 | | | | (428,772 | ) | | | — | | | | (372,305 | ) | | | 211,758 | | | | — | | | | — | | | | 543,851 | | | | — | | | | (5,856,328 | ) | | | — | | | | (5,100,719 | ) |
| 10/31/2010 | | | | | 65,343 | | | | — | | | | 81,945 | | | | (494,090 | ) | | | — | | | | (346,802 | ) | | | 819,763 | | | | — | | | | — | | | | 1,003,378 | | | | — | | | | (5,993,064 | ) | | | — | | | | (4,169,923 | ) |
Class C |
| 10/31/2011 | | | | | 3,871,056 | | | | — | | | | 368,665 | | | | (3,233,525 | ) | | | — | | | | 1,006,196 | | | | 55,991,916 | | | | — | | | | — | | | | 5,190,100 | | | | — | | | | (46,083,893 | ) | | | — | | | | 15,098,123 | |
| 10/31/2010 | | | | | 4,642,825 | | | | — | | | | 479,930 | | | | (2,927,692 | ) | | | — | | | | 2,195,063 | | | | 60,749,179 | | | | — | | | | — | | | | 6,210,490 | | | | — | | | | (37,954,330 | ) | | | — | | | | 29,005,339 | |
Class I |
| 10/31/2011 | | | | | 55,667,213 | | | | — | | | | 3,313,362 | | | | (26,245,082 | ) | | | — | | | | 32,735,493 | | | | 909,749,138 | | | | — | | | | — | | | | 52,673,272 | | | | — | | | | (416,986,757 | ) | | | — | | | | 545,435,653 | |
| 10/31/2010 | | | | | 56,047,518 | | | | — | | | | 2,362,378 | | | | (14,694,987 | ) | | | — | | | | 43,714,909 | | | | 819,376,161 | | | | — | | | | — | | | | 34,557,613 | | | | — | | | | (216,539,062 | ) | | | — | | | | 637,394,712 | |
Class O |
| 10/31/2011 | | | | | 115,732 | | | | — | | | | 1,039 | | | | (172,483 | ) | | | — | | | | (55,712 | ) | | | 1,892,052 | | | | — | | | | — | | | | 16,607 | | | | — | | | | (2,819,602 | ) | | | — | | | | (910,943 | ) |
| 10/31/2010 | | | | | 149,356 | | | | — | | | | 1,790 | | | | (188,857 | ) | | | — | | | | (37,711 | ) | | | 2,206,785 | | | | — | | | | — | | | | 26,198 | | | | — | | | | (2,797,854 | ) | | | — | | | | (564,871 | ) |
Class R |
8/5/2011(1)-10/31/2011 | | | | | 193 | | | | — | | | | — | | | | — | | | | — | | | | 193 | | | | 2,998 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2,998 | |
Class W |
| 10/31/2011 | | | | | 9,234,130 | | | | — | | | | 684,225 | | | | (7,206,362 | ) | | | — | | | | 2,711,993 | | | | 151,468,423 | | | | — | | | | — | | | | 10,943,660 | | | | — | | | | (117,273,273 | ) | | | — | | | | 45,138,810 | |
| 10/31/2010 | | | | | 8,813,884 | | | | — | | | | 591,867 | | | | (4,773,471 | ) | | | — | | | | 4,632,280 | | | | 129,335,342 | | | | — | | | | — | | | | 8,679,094 | | | | — | | | | (69,779,415 | ) | | | — | | | | 68,235,021 | |
Global Value Choice |
Class A |
| 10/31/2011 | | | | | 4,265,625 | | | | — | | | | 79,834 | | | | (3,420,485 | ) | | | — | | | | 924,974 | | | | 144,603,799 | | | | — | | | | — | | | | 2,641,663 | | | | — | | | | (114,217,071 | ) | | | — | | | | 33,028,391 | |
| 10/31/2010 | | | | | 5,123,750 | | | | — | | | | 19,446 | | | | (2,928,701 | ) | | | — | | | | 2,214,495 | | | | 148,107,340 | | | | 218,157 | | | | — | | | | 545,422 | | | | — | | | | (85,125,992 | ) | | | — | | | | 63,744,927 | |
Class B |
| 10/31/2011 | | | | | 13,043 | | | | — | | | | 1,069 | | | | (69,196 | ) | | | — | | | | (55,084 | ) | | | 471,719 | | | | — | | | | — | | | | 37,866 | | | | — | | | | (2,483,644 | ) | | | — | | | | (1,974,059 | ) |
| 10/31/2010 | | | | | 53,756 | | | | — | | | | 526 | | | | (84,564 | ) | | | — | | | | (30,282 | ) | | | 1,632,312 | | | | 10,831 | | | | — | | | | 15,683 | | | | — | | | | (2,589,534 | ) | | | — | | | | (930,708 | ) |
Class C |
| 10/31/2011 | | | | | 1,679,621 | | | | — | | | | 21,518 | | | | (705,689 | ) | | | — | | | | 995,450 | | | | 53,663,379 | | | | — | | | | — | | | | 673,274 | | | | — | | | | (22,048,879 | ) | | | — | | | | 32,287,774 | |
| 10/31/2010 | | | | | 2,121,677 | | | | — | | | | 3,072 | | | | (613,310 | ) | | | — | | | | 1,511,439 | | | | 58,258,559 | | | | 94,969 | | | | — | | | | 81,317 | | | | — | | | | (16,836,867 | ) | | | — | | | | 41,597,978 | |
Class I |
| 10/31/2011 | | | | | 4,607,087 | | | | — | | | | 13,983 | | | | (1,953,720 | ) | | | — | | | | 2,667,350 | | | | 157,033,879 | | | | — | | | | — | | | | 466,333 | | | | — | | | | (65,663,284 | ) | | | — | | | | 91,836,928 | |
| 10/31/2010 | | | | | 4,714,094 | | | | — | | | | 3,454 | | | | (376,334 | ) | | | — | | | | 4,341,214 | | | | 139,901,518 | | | | 52,839 | | | | — | | | | 97,710 | | | | — | | | | (10,950,977 | ) | | | — | | | | 129,101,090 | |
Class Q(2) |
| 10/31/2011 | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| 10/31/2010 | | | | | 94,329 | | | | — | | | | 141 | | | | (90,249 | ) | | | (89,157 | ) | | | (84,936 | ) | | | 164,212 | | | | — | | | | — | | | | 4,706 | | | | — | | | | (35,023 | ) | | | (2,937,993 | ) | | | (2,804,098 | ) |
Class W |
| 10/31/2011 | | | | | 981,538 | | | | — | | | | 17,025 | | | | (1,153,978 | ) | | | — | | | | (155,415 | ) | | | 33,546,538 | | | | — | | | | — | | | | 566,930 | | | | — | | | | (39,295,079 | ) | | | — | | | | (5,181,611 | ) |
| 10/31/2010 | | | | | 968,515 | | | | — | | | | 544 | | | | (144,162 | ) | | | 104,290 | | | | 929,187 | | | | 28,782,179 | | | | 12,728 | | | | — | | | | 15,268 | | | | — | | | | (4,229,081 | ) | | | 2,937,993 | | | | 27,519,087 | |
Greater China |
Class A |
| 10/31/2011 | | | | | 313,197 | | | | — | | | | 18,389 | | | | (652,246 | ) | | | — | | | | (320,660 | ) | | | 5,042,890 | | | | — | | | | — | | | | 301,511 | | | | — | | | | (10,568,981 | ) | | | — | | | | (5,224,580 | ) |
| 10/31/2010 | | | | | 562,404 | | | | — | | | | 30,852 | | | | (1,068,369 | ) | | | — | | | | (475,113 | ) | | | 8,263,372 | | | | — | | | | — | | | | 455,094 | | | | — | | | | (15,405,908 | ) | | | — | | | | (6,687,442 | ) |
| (1) | | Commencement of operations. |
| (2) | | Effective November 20, 2009, Class Q shareholders of Global Value Choice, Global Opportunities, International SmallCap Multi-Manager and International Value were converted to Class W shares of each respective Fund. |
105
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 12 — CAPITAL SHARES (continued)
Year or
| | | | Shares
sold
| | Shares
issued in
merger
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Payments from
Distribution
settlement/
affiliate
(Note 17)
| | Proceeds
from shares
issued in
merger
| | Reinvestment
of
distributions
| | Redemption
fee
proceeds
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
|
|---|
period ended
| | | | #
| | #
| | #
| | #
| | #
| | #
| | ($)
| | $
| | ($)
| | ($)
| | $
| | ($)
| | $
| | ($)
|
|---|
Greater China (continued) |
Class B |
| 10/31/2011 | | | | | 3,916 | | | | — | | | | 588 | | | | (49,224 | ) | | | — | | | | (44,720 | ) | | | 58,950 | | | | — | | | | — | | | | 9,565 | | | | — | | | | (777,885 | ) | | | — | | | | (709,370 | ) |
| 10/31/2010 | | | | | 11,223 | | | | — | | | | 1,446 | | | | (71,364 | ) | | | — | | | | (58,695 | ) | | | 163,319 | | | | — | | | | — | | | | 21,202 | | | | — | | | | (1,011,153 | ) | | | — | | | | (826,632 | ) |
Class C |
| 10/31/2011 | | | | | 51,777 | | | | — | | | | 1,543 | | | | (110,619 | ) | | | — | | | | (57,299 | ) | | | 847,711 | | | | — | | | | — | | | | 25,099 | | | | — | | | | (1,734,536 | ) | | | — | | | | (861,726 | ) |
| 10/31/2010 | | | | | 125,268 | | | | — | | | | 4,167 | | | | (209,770 | ) | | | — | | | | (80,335 | ) | | | 1,852,886 | | | | — | | | | — | | | | 61,091 | | | | — | | | | (3,035,530 | ) | | | — | | | | (1,121,553 | ) |
Class I |
| 10/31/2011 | | | | | 52,454 | | | | — | | | | 1,104 | | | | (52,883 | ) | | | — | | | | 675 | | | | 873,097 | | | | — | | | | — | | | | 18,083 | | | | — | | | | (857,921 | ) | | | — | | | | 33,259 | |
| 10/31/2010 | | | | | 139,550 | | | | — | | | | 938 | | | | (54,154 | ) | | | — | | | | 86,334 | | | | 2,090,745 | | | | — | | | | — | | | | 13,788 | | | | — | | | | (795,411 | ) | | | — | | | | 1,309,122 | |
Class O |
| 10/31/2011 | | | | | 174,314 | | | | — | | | | 1 | | | | (123,202 | ) | | | — | | | | 51,113 | | | | 2,808,070 | | | | — | | | | — | | | | 17 | | | | — | | | | (1,928,462 | ) | | | — | | | | 879,625 | |
| 10/31/2010 | | | | | 221,453 | | | | — | | | | — | | | | (152,009 | ) | | | — | | | | 69,444 | | | | 3,243,169 | | | | — | | | | — | | | | — | | | | — | | | | (2,199,401 | ) | | | — | | | | 1,043,768 | |
Class W |
8/5/2011(1)-10/31/2011 | | | | | 193 | | | | — | | | | — | | | | — | | | | — | | | | 193 | | | | 3,000 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,000 | |
Index Plus International Equity |
Class A |
| 10/31/2011 | | | | | 104,858 | | | | — | | | | 13,812 | | | | (249,258 | ) | | | — | | | | (130,588 | ) | | | 900,553 | | | | — | | | | — | | | | 115,330 | | | | — | | | | (2,118,993 | ) | | | — | | | | (1,103,110 | ) |
| 10/31/2010 | | | | | 126,350 | | | | — | | | | 19,995 | | | | (204,662 | ) | | | — | | | | (58,317 | ) | | | 1,002,690 | | | | 1,182 | | | | — | | | | 158,654 | | | | — | | | | (1,604,935 | ) | | | — | | | | (442,409 | ) |
Class B |
| 10/31/2011 | | | | | 13 | | | | — | | | | 278 | | | | (42,996 | ) | | | — | | | | (42,705 | ) | | | 112 | | | | — | | | | — | | | | 2,340 | | | | — | | | | (377,578 | ) | | | — | | | | (375,126 | ) |
| 10/31/2010 | | | | | 1,442 | | | | — | | | | 1,260 | | | | (66,899 | ) | | | — | | | | (64,197 | ) | | | 11,844 | | | | 127 | | | | — | | | | 10,068 | | | | — | | | | (524,252 | ) | | | — | | | | (502,213 | ) |
Class C |
| 10/31/2011 | | | | | 6,716 | | | | — | | | | 529 | | | | (29,920 | ) | | | — | | | | (22,675 | ) | | | 56,268 | | | | — | | | | — | | | | 4,422 | | | | — | | | | (250,290 | ) | | | — | | | | (189,600 | ) |
| 10/31/2010 | | | | | 16,860 | | | | — | | | | 1,572 | | | | 59,997 | | | | — | | | | (41,565 | ) | | | 1,333,565 | | | | 178 | | | | — | | | | 12,475 | | | | — | | | | (461,012 | ) | | | — | | | | (314,794 | ) |
Class I |
| 10/31/2011 | | | | | 5,759,325 | | | | — | | | | 161,820 | | | | (9,597,420 | ) | | | — | | | | (3,676,275 | ) | | | 47,802,176 | | | | — | | | | — | | | | 1,352,813 | | | | — | | | | (83,821,515 | ) | | | — | | | | (34,666,526 | ) |
| 10/31/2010 | | | | | 6,522,224 | | | | — | | | | 129,035 | | | | (3,480,056 | ) | | | — | | | | 3,171,203 | | | | 46,778,930 | | | | 6,746 | | | | — | | | | 1,023,724 | | | | — | | | | (27,889,386 | ) | | | — | | | | 19,920,014 | |
Class O |
| 10/31/2011 | | | | | 366,085 | | | | — | | | | 3,588 | | | | (856,544 | ) | | | — | | | | (486,871 | ) | | | 3,074,094 | | | | — | | | | — | | | | 29,742 | | | | — | | | | (7,220,670 | ) | | | — | | | | (4,116,834 | ) |
| 10/31/2010 | | | | | 396,697 | | | | — | | | | 6,275 | | | | (975,579 | ) | | | — | | | | (572,607 | ) | | | 3,094,755 | | | | 6,130 | | | | — | | | | 49,354 | | | | — | | | | (7,629,960 | ) | | | — | | | | (4,479,721 | ) |
Class W |
8/5/2011(1)-10/31/2011 | | | | | 378 | | | | — | | | | — | | | | — | | | | — | | | | 378 | | | | 3,000 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,000 | |
International Capital Appreciation |
Class A |
| 10/31/2011 | | | | | 195,816 | | | | — | | | | 7,316 | | | | (830,648 | ) | | | — | | | | (627,516 | ) | | | 2,072,657 | | | | — | | | | — | | | | 76,020 | | | | — | | | | (8,624,785 | ) | | | — | | | | (6,476,108 | ) |
| 10/31/2010 | | | | | 254,793 | | | | — | | | | — | | | | (676,394 | ) | | | — | | | | (421,601 | ) | | | 2,406,542 | | | | 4,565 | | | | — | | | | — | | | | — | | | | (6,403,411 | ) | | | — | | | | (3,992,304 | ) |
Class B |
| 10/31/2011 | | | | | 5 | | | | — | | | | 141 | | | | (156,988 | ) | | | — | | | | (156,842 | ) | | | 49 | | | | — | | | | — | | | | 1,462 | | | | — | | | | (1,655,706 | ) | | | — | | | | (1,654,195 | ) |
| 10/31/2010 | | | | | 12,264 | | | | — | | | | — | | | | (248,489 | ) | | | — | | | | (236,225 | ) | | | 120,843 | | | | 720 | | | | — | | | | — | | | | — | | | | (2,291,677 | ) | | | — | | | | (2,170,114 | ) |
Class C |
| 10/31/2011 | | | | | 11,558 | | | | — | | | | 268 | | | | (98,699 | ) | | | — | | | | (86,873 | ) | | | 117,142 | | | | — | | | | — | | | | 2,779 | | | | — | | | | (992,066 | ) | | | — | | | | (872,145 | ) |
| 10/31/2010 | | | | | 30,886 | | | | — | | | | — | | | | (148,512 | ) | | | — | | | | (117,626 | ) | | | 293,890 | | | | 1,413 | | | | — | | | | — | | | | — | | | | (1,390,616 | ) | | | — | | | | (1,095,313 | ) |
Class I |
| 10/31/2011 | | | | | 178,767 | | | | — | | | | 44,069 | | | | (5,330,783 | ) | | | — | | | | (5,107,947 | ) | | | 1,900,053 | | | | — | | | | — | | | | 455,742 | | | | — | | | | (56,620,019 | ) | | | — | | | | (54,264,224 | ) |
| 10/31/2010 | | | | | 2,169,135 | | | | — | | | | — | | | | (2,964,930 | ) | | | — | | | | (795,795 | ) | | | 20,494,871 | | | | 8,679 | | | | — | | | | — | | | | — | | | | (28,544,870 | ) | | | — | | | | (8,041,320 | ) |
Class Q(3) |
| 10/31/2011 | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| 10/31/2010 | | | | | 37,938 | | | | — | | | | — | | | | (104,931 | ) | | | (1,225,201 | ) | | | (1,292,194 | ) | | | 364,883 | | | | — | | | | — | | | | — | | | | — | | | | (1,009,772 | ) | | | (11,746,943 | ) | | | (12,391,832 | ) |
Class W |
| 10/31/2011 | | | | | 23,142 | | | | — | | | | 6,724 | | | | (257,103 | ) | | | — | | | | (227,237 | ) | | | 234,321 | | | | — | | | | — | | | | 69,771 | | | | — | | | | (2,569,828 | ) | | | — | | | | (2,265,736 | ) |
| 10/31/2010 | | | | | 155,240 | | | | — | | | | — | | | | (312,970 | ) | | | 1,225,201 | | | | 1,067,471 | | | | 1,481,249 | | | | 2,087 | | | | — | | | | — | | | | — | | | | (2,977,745 | ) | | | 11,746,943 | | | | 10,252,534 | |
International Core |
Class I |
2/8/2011(1)-10/31/2011 | | | | | 45,815,728 | | | | — | | | | — | | | | (6,242,980 | ) | | | — | | | | 39,572,748 | | | | 448,417,065 | | | | — | | | | — | | | | — | | | | — | | | | (59,613,945 | ) | | | — | | | | 388,803,120 | |
| (1) | | Commencement of operations. |
| (3) | | Effective March 8, 2010, Class Q shareholders of Emerging Countries and International Capital Appreciation were converted to Class W shares of each respective Fund. |
106
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 12 — CAPITAL SHARES (continued)
Year or
| | | | Shares
sold
| | Shares
issued in
merger
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Payments from
Distribution
settlement/
affiliate
(Note 17)
| | Proceeds
from shares
issued in
merger
| | Reinvestment
of
distributions
| | Redemption
fee
proceeds
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
|
|---|
period ended
| | | | #
| | #
| | #
| | #
| | #
| | #
| | ($)
| | $
| | ($)
| | ($)
| | $
| | ($)
| | $
| | ($)
|
|---|
International Growth |
Class I |
1/6/2011(1)-10/31/2011 | | | | | 19,924,126 | | | | — | | | | — | | | | (3,769,437 | ) | | | — | | | | 16,154,689 | | | | 199,737,196 | | | | — | | | | — | | | | — | | | | — | | | | (38,310,028 | ) | | | — | | | | 161,427,168 | |
International Real Estate |
Class A |
| 10/31/2011 | | | | | 7,227,357 | | | | — | | | | 1,171,944 | | | | (11,322,447 | ) | | | — | | | | (2,923,146 | ) | | | 62,494,032 | | | | — | | | | — | | | | 10,119,648 | | | | — | | | | (96,244,789 | ) | | | — | | | | (23,631,109 | ) |
| 10/31/2010 | | | | | 17,430,471 | | | | — | | | | 1,077,729 | | | | (5,113,917 | ) | | | — | | | | 13,394,283 | | | | 143,696,684 | | | | — | | | | — | | | | 8,750,749 | | | | — | | | | (40,981,653 | ) | | | — | | | | 111,465,780 | |
Class B |
| 10/31/2011 | | | | | 3,697 | | | | — | | | | 9,939 | | | | (87,778 | ) | | | — | | | | (74,142 | ) | | | 31,996 | | | | — | | �� | | — | | | | 85,732 | | | | — | | | | (742,635 | ) | | | — | | | | (624,907 | ) |
| 10/31/2010 | | | | | 6,840 | | | | — | | | | 24,106 | | | | (147,551 | ) | | | — | | | | (116,605 | ) | | | 56,443 | | | | — | | | | — | | | | 195,645 | | | | — | | | | (1,177,651 | ) | | | — | | | | (925,563 | ) |
Class C |
| 10/31/2011 | | | | | 304,400 | | | | — | | | | 80,431 | | | | (855,106 | ) | | | — | | | | (470,275 | ) | | | 2,651,330 | | | | — | | | | — | | | | 693,114 | | | | — | | | | (7,322,661 | ) | | | — | | | | (3,978,217 | ) |
| 10/31/2010 | | | | | 522,991 | | | | — | | | | 141,243 | | | | (897,985 | ) | | | — | | | | (233,751 | ) | | | 4,272,321 | | | | — | | | | — | | | | 1,145,053 | | | | — | | | | (7,065,323 | ) | | | — | | | | (1,647,949 | ) |
Class I |
| 10/31/2011 | | | | | 7,030,985 | | | | — | | | | 329,211 | | | | (16,139,496 | ) | | | — | | | | (8,779,300 | ) | | | 60,667,094 | | | | — | | | | — | | | | 2,824,850 | | | | — | | | | (138,463,131 | ) | | | — | | | | (74,971,187 | ) |
| 10/31/2010 | | | | | 11,079,060 | | | | — | | | | 793,073 | | | | (16,225,470 | ) | | | — | | | | (4,353,337 | ) | | | 88,767,647 | | | | — | | | | — | | | | 6,460,402 | | | | — | | | | (129,642,398 | ) | | | — | | | | (34,414,349 | ) |
Class W |
| 10/31/2011 | | | | | 1,339,658 | | | | — | | | | 25,637 | | | | (640,252 | ) | | | — | | | | 725,043 | | | | 11,650,245 | | | | — | | | | — | | | | 220,522 | | | | — | | | | (5,378,733 | ) | | | — | | | | 6,492,034 | |
| 10/31/2010 | | | | | 485,261 | | | | — | | | | 11,307 | | | | (157,469 | ) | | | — | | | | 339,099 | | | | 3,996,867 | | | | — | | | | — | | | | 92,174 | | | | — | | | | (1,255,296 | ) | | | — | | | | 2,833,745 | |
International SmallCap Multi-Manager |
Class A |
| 10/31/2011 | | | | | 622,313 | | | | — | | | | 11,418 | | | | (1,662,144 | ) | | | — | | | | (1,028,413 | ) | | | 24,861,014 | | | | 43,448 | | | | — | | | | 445,420 | | | | — | | | | (65,716,954 | ) | | | — | | | | (40,367,072 | ) |
| 10/31/2010 | | | | | 818,452 | | | | — | | | | 46,987 | | | | (2,671,591 | ) | | | — | | | | (1,806,152 | ) | | | 27,484,915 | | | | 418,709 | | | | — | | | | 1,540,998 | | | | — | | | | (89,612,983 | ) | | | — | | | | (60,168,361 | ) |
Class B |
| 10/31/2011 | | | | | 148 | | | | — | | | | 1 | | | | (59,948 | ) | | | — | | | | (59,799 | ) | | | 6,278 | | | | 1,163 | | | | — | | | | 49 | | | | — | | | | (2,536,178 | ) | | | — | | | | (2,528,688 | ) |
| 10/31/2010 | | | | | 2,789 | | | | — | | | | 673 | | | | (127,761 | ) | | | — | | | | (124,299 | ) | | | 98,399 | | | | 16,420 | | | | — | | | | 23,427 | | | | — | | | | (4,445,789 | ) | | | — | | | | (4,307,543 | ) |
Class C |
| 10/31/2011 | | | | | 15,965 | | | | — | | | | 15 | | | | (191,906 | ) | | | — | | | | (175,926 | ) | | | 598,166 | | | | 10,010 | | | | — | | | | 477 | | | | — | | | | (7,103,227 | ) | | | — | | | | (6,494,574 | ) |
| 10/31/2010 | | | | | 33,453 | | | | — | | | | 6,523 | | | | (238,730 | ) | | | — | | | | (198,754 | ) | | | 1,058,863 | | | | 74,919 | | | | — | | | | 201,523 | | | | — | | | | (7,456,868 | ) | | | — | | | | (6,121,563 | ) |
Class I |
| 10/31/2011 | | | | | 1,087,598 | | | | — | | | | 21,402 | | | | (2,380,895 | ) | | | — | | | | (1,271,895 | ) | | | 43,168,247 | | | | 70,572 | | | | — | | | | 834,463 | | | | — | | | | (90,223,469 | ) | | | — | | | | (46,150,187 | ) |
| 10/31/2010 | | | | | 2,065,296 | | | | — | | | | 45,547 | | | | (1,742,521 | ) | | | — | | | | 368,322 | | | | 69,833,855 | | | | 426,266 | | | | — | | | | 1,490,905 | | | | — | | | | (57,692,823 | ) | | | — | | | | 14,058,203 | |
Class O |
| 10/31/2011 | | | | | 23,889 | | | | — | | | | — | | | | (14,538 | ) | | | — | | | | 9,351 | | | | 947,636 | | | | 597 | | | | — | | | | — | | | | — | | | | (569,560 | ) | | | — | | | | 378,673 | |
| 10/31/2010 | | | | | 24,913 | | | | — | | | | — | | | | (11,765 | ) | | | — | | | | 13,148 | | | | 826,270 | | | | 2,233 | | | | — | | | | — | | | | — | | | | (390,320 | ) | | | — | | | | 438,183 | |
Class Q(2) |
| 10/31/2011 | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| 10/31/2010 | | | | | 11,395 | | | | — | | | | 7,743 | | | | (7,889 | ) | | | (910,998 | ) | | | (899,749 | ) | | | 402,874 | | | | — | | | | — | | | | 276,272 | | | | — | | | | (280,396 | ) | | | (31,864,997 | ) | | | (31,466,247 | ) |
Class W |
| 10/31/2011 | | | | | 223,881 | | | | — | | | | 5,091 | | | | (543,204 | ) | | | — | | | | (314,232 | ) | | | 10,339,982 | | | | 10,572 | | | | — | | | | 235,018 | | | | — | | | | (26,455,767 | ) | | | — | | | | (15,870,195 | ) |
| 10/31/2010 | | | | | 238,386 | | | | — | | | | 7,339 | | | | (462,917 | ) | | | 841,925 | | | | 624,733 | | | | 9,294,968 | | | | 95,983 | | | | — | | | | 285,158 | | | | — | | | | (18,237,990 | ) | | | 31,864,997 | | | | 23,303,116 | |
International Value Choice |
Class A |
| 10/31/2011 | | | | | 700,913 | | | | — | | | | 16,673 | | | | (710,198 | ) | | | — | | | | 7,388 | | | | 7,732,588 | | | | — | | | | — | | | | 183,909 | | | | — | | | | (7,787,412 | ) | | | — | | | | 129,085 | |
| 10/31/2010 | | | | | 1,310,027 | | | | — | | | | 11,876 | | | | (864,727 | ) | | | — | | | | 457,176 | | | | 13,301,696 | | | | — | | | | — | | | | 118,571 | | | | — | | | | (8,753,759 | ) | | | — | | | | 4,666,508 | |
Class B |
| 10/31/2011 | | | | | 2,967 | | | | — | | | | — | | | | (62,387 | ) | | | — | | | | (59,420 | ) | | | 32,117 | | | | — | | | | — | | | | — | | | | — | | | | (676,895 | ) | | | — | | | | (644,778 | ) |
| 10/31/2010 | | | | | 31,091 | | | | — | | | | 142 | | | | (110,862 | ) | | | — | | | | (79,629 | ) | | | 311,747 | | | | — | | | | — | | | | 1,400 | | | | — | | | | (1,113,782 | ) | | | — | | | | (800,635 | ) |
Class C |
| 10/31/2011 | | | | | 102,250 | | | | — | | | | 874 | | | | (137,507 | ) | | | — | | | | (34,383 | ) | | | 1,109,821 | | | | — | | | | — | | | | 9,548 | | | | — | | | | (1,454,328 | ) | | | — | | | | (334,959 | ) |
| 10/31/2010 | | | | | 153,510 | | | | — | | | | 281 | | | | (100,652 | ) | | | — | | | | 53,139 | | | | 1,531,145 | | | | — | | | | — | | | | 2,772 | | | | — | | | | (1,009,276 | ) | | | — | | | | 524,641 | |
Class I |
| 10/31/2011 | | | | | 1,211,619 | | | | — | | | | 14,302 | | | | (2,458,363 | ) | | | — | | | | (1,232,442 | ) | | | 13,488,923 | | | | — | | | | — | | | | 157,468 | | | | — | | | | (25,305,252 | ) | | | — | | | | (11,658,861 | ) |
| 10/31/2010 | | | | | 730,868 | | | | — | | | | 22,826 | | | | (1,997,018 | ) | | | — | | | | (1,243,324 | ) | | | 7,510,456 | | | | — | | | | — | | | | 227,476 | | | | — | | | | (20,171,373 | ) | | | — | | | | (12,433,441 | ) |
Class W |
| 10/31/2011 | | | | | 6,762 | | | | — | | | | 47 | | | | (3,616 | ) | | | — | | | | 3,193 | | | | 75,798 | | | | — | | | | — | | | | 516 | | | | — | | | | (40,182 | ) | | | — | | | | 36,132 | |
| 10/31/2010 | | | | | 3,055 | | | | — | | | | — | | | | (327 | ) | | | — | | | | 2,728 | | | | 30,970 | | | | — | | | | — | | | | — | | | | — | | | | (3,196 | ) | | | — | | | | 27,774 | |
| (1) | | Commencement of operations. |
| (2) | | Effective November 20, 2009, Class Q shareholders of Global Value Choice, Global Opportunities, International SmallCap Multi-Manager and International Value were converted to Class W shares of each respective Fund. |
107
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 12 — CAPITAL SHARES (continued)
Year or
| | | | Shares
sold
| | Shares
issued in
merger
| | Reinvestment
of
distributions
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
in shares
outstanding
| | Shares
sold
| | Payments from
Distribution
settlement/
affiliate
(Note 17)
| | Proceeds
from shares
issued in
merger
| | Reinvestment
of
distributions
| | Redemption
fee
proceeds
| | Shares
redeemed
| | Shares
converted
| | Net
increase
(decrease)
|
|---|
period ended
| | | | #
| | #
| | #
| | #
| | #
| | #
| | ($)
| | $
| | ($)
| | ($)
| | $
| | ($)
| | $
| | ($)
|
|---|
International Value |
Class A |
| 10/31/2011 | | | | | 2,713,615 | | | | — | | | | 687,338 | | | | (21,092,834 | ) | | | — | | | | (17,691,881 | ) | | | 31,514,665 | | | | 48,376 | | | | — | | | | 7,909,938 | | | | — | | | | (245,656,346 | ) | | | — | | | | (206,183,367 | ) |
| 10/31/2010 | | | | | 7,026,226 | | | | — | | | | 710,866 | | | | (25,323,864 | ) | | | — | | | | (17,586,772 | ) | | | 78,387,641 | | | | 1,067,929 | | | | — | | | | 8,359,125 | | | | — | | | | (284,580,757 | ) | | | — | | | | (196,766,062 | ) |
Class B |
| 10/31/2011 | | | | | 953 | | | | — | | | | 5 | | | | (134,706 | ) | | | — | | | | (133,748 | ) | | | 15,458 | | | | 233 | | | | — | | | | 57 | | | | — | | | | (1,596,187 | ) | | | — | | | | (1,580,439 | ) |
| 10/31/2010 | | | | | 21,536 | | | | — | | | | 9,206 | | | | (3,151,447 | ) | | | — | | | | (3,120,705 | ) | | | 252,668 | | | | 36,943 | | | | — | | | | 106,986 | | | | — | | | | (34,636,502 | ) | | | — | | | | (34,239,905 | ) |
Class C |
| 10/31/2011 | | | | | 125,441 | | | | — | | | | 190,553 | | | | (5,369,143 | ) | | | — | | | | (5,053,149 | ) | | | 1,422,732 | | | | 21,392 | | | | — | | | | 2,131,679 | | | | — | | | | (60,913,970 | ) | | | — | | | | (57,338,167 | ) |
| 10/31/2010 | | | | | 181,612 | | | | — | | | | 173,077 | | | | (7,377,003 | ) | | | — | | | | (7,022,314 | ) | | | 2,030,780 | | | | 413,632 | | | | — | | | | 1,980,048 | | | | — | | | | (80,336,446 | ) | | | — | | | | (75,911,986 | ) |
Class I |
| 10/31/2011 | | | | | 10,647,783 | | | | — | | | | 658,850 | | | | (25,034,873 | ) | | | — | | | | (13,728,240 | ) | | | 125,628,816 | | | | 45,553 | | | | — | | | | 7,549,252 | | | | — | | | | (291,421,213 | ) | | | — | | | | (158,197,592 | ) |
| 10/31/2010 | | | | | 8,233,085 | | | | — | | | | 725,981 | | | | (24,554,669 | ) | | | — | | | | (15,595,603 | ) | | | 92,823,046 | | | | 990,243 | | | | — | | | | 8,507,693 | | | | — | | | | (272,895,909 | ) | | | — | | | | (170,574,927 | ) |
Class Q(2) |
| 10/31/2011 | | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| 10/31/2010 | | | | | 31,392 | | | | — | | | | 24,859 | | | | (5,338 | ) | | | (2,194,061 | ) | | | (2,143,148 | ) | | | 360,000 | | | | — | | | | — | | | | 293,336 | | | | — | | | | (63,436 | ) | | | (25,186,398 | ) | | | (24,596,498 | ) |
Class W |
| 10/31/2011 | | | | | 11,107 | | | | — | | | | 46,331 | | | | (2,099,066 | ) | | | — | | | | (2,041,628 | ) | | | 128,517 | | | | 70 | | | | — | | | | 530,953 | | | | — | | | | (24,170,447 | ) | | | — | | | | (23,510,907 | ) |
| 10/31/2010 | | | | | 254,958 | | | | — | | | | 4,697 | | | | (374,961 | ) | | | 2,198,715 | | | | 2,083,409 | | | | 2,705,165 | | | | 36,222 | | | | — | | | | 53,646 | | | | — | | | | (4,246,495 | ) | | | 25,186,398 | | | | 23,734,936 | |
Russia |
Class A |
| 10/31/2011 | | | | | 1,257,704 | | | | — | | | | — | | | | (3,228,676 | ) | | | — | | | | (1,970,972 | ) | | | 51,432,518 | | | | — | | | | — | | | | — | | | | (180,692 | ) | | | (124,889,133 | ) | | | — | | | | (73,275,923 | ) |
| 10/31/2010 | | | | | 1,844,234 | | | | — | | | | — | | | | (3,034,687 | ) | | | — | | | | (1,190,453 | ) | | | 62,096,502 | | | | — | | | | — | | | | — | | | | 369,837 | | | | (99,820,501 | ) | | | — | | | | (37,354,162 | ) |
Class I |
| 10/31/2011 | | | | | 263,755 | | | | — | | | | — | | | | (174,657 | ) | | | — | | | | 89,098 | | | | 10,631,704 | | | | — | | | | — | | | | — | | | | (37,248 | ) | | | (6,576,891 | ) | | | — | | | | 4,092,061 | |
| 10/31/2010 | | | | | 267,155 | | | | — | | | | — | | | | (64,795 | ) | | | — | | | | 222,360 | | | | 9,612,750 | | | | — | | | | — | | | | — | | | | 4,943 | | | | (2,164,098 | ) | | | — | | | | 7,453,595 | |
Class W |
8/5/2011(1)-10/31/2011 | | | | | 76 | | | | — | | | | — | | | | — | | | | — | | | | 76 | | | | 3,001 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,001 | |
| |
| (1) | | Commencement of operations. |
| (2) | | Effective November 20, 2009, Class Q shareholders of Global Value Choice, Global Opportunities, International SmallCap Multi-Manager and International Value were converted to Class W shares of each respective Fund. |
NOTE 13 — CONCENTRATION OF RISKS
All mutual funds involve risk — some more than others — and there is always the chance that you could lose money or not earn as much as you hope. A Fund’s risk profile is largely a factor of the principal securities in which it invests and investment techniques that it uses. For more information regarding the types of securities and investment techniques that may be used by the Funds and their corresponding risks, see each Fund’s most recent Prospectus and/or the Statement of Additional Information.
Diversified International is also affected by other kinds of risks, depending on the types of securities held or strategies used by an Underlying Fund.
Investment by Funds-of-Funds (Certain Funds). Each of the Underlying Funds’ shares may be purchased by other investment companies. In some cases, an Underlying Fund may experience large inflows or redemptions due to allocations or rebalancings. While it is impossible to predict the overall impact of these transactions over time, there could be adverse effects on portfolio management. The Investment Adviser will monitor transactions by each Underlying Fund and will attempt to minimize any adverse effects on the Underlying Funds and the Fund as a result of these transactions. So long as an Underlying Fund accepts investments by other investment companies, it will not purchase securities of other investment companies, except to the extent permitted by the 1940 Act or under the terms of an exemptive order granted by the SEC.
Foreign Securities (All Funds). Investments in foreign securities may entail risks not present in domestic investments. Since securities in which the Funds and Underlying Funds may invest are denominated in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Funds and Underlying Funds. Foreign investments may also subject the Funds and Underlying Funds to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, as well as changes vis-a-vis the U.S. dollar from movements in currency, and changes in
108
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 13 — CONCENTRATION OF RISKS (continued)
security value and interest rate, all of which could affect the market and/or credit risk of the Funds’ and Underlying Funds’ investments.
Non-Diversified (Global Natural Resources, Global Real Estate, International Real Estate, Russia and Global Bond). Certain of the Funds and Underlying Funds are classified as non-diversified investment companies under the 1940 Act, which means that they are not limited by the 1940 Act in the proportion of assets that they may invest in the obligations of a single issuer. Declines in the value of that single company can significantly impact the value of a Fund or Underlying Fund. The investment of a large percentage of a Fund’s or Underlying Fund’s assets in the securities of a small number of issuers may cause a Fund’s share price to fluctuate more than that of a diversified investment company. Conversely, even though classified as non-diversified, a Fund or Underlying Fund may actually maintain a portfolio that is diversified with a large number of issuers. In such an event, a Fund or Underlying Fund would benefit less from appreciation in a single corporate issuer than if it had greater exposure to that issuer.
NOTE 14 — SECURITIES LENDING
Under an agreement with The Bank of New York Mellon (“BNY”), the Funds (except Diversified International) can lend their securities to approved brokers, dealers and other financial institutions. Loans are collateralized by cash and U.S. government securities. The collateral is equal to at least 105% of the market value of non-U.S. securities loaned and 102% of the market value of U.S. securities loaned. The market value of the loaned securities is determined at the close of business of the Funds at their last sale price or official closing price on the principal exchange or system on which they are traded and any additional collateral is delivered to the Funds on the next business day. The cash collateral received is invested in approved investments as defined in the Securities Lending Agreement with BNY (the “Agreement”). The Funds bear the risk of loss with respect to the investment of collateral with the following exception: Effective October 1, 2011, BNY provides the Funds indemnification from loss with respect to the investment of collateral provided that the cash collateral is invested solely in overnight repurchase agreements.
Currently, the cash collateral is invested in overnight repurchase agreements that are collateralized at 102% with securities issued or fully guaranteed by the United States Treasury; United States government or any agency, instrumentality or authority of the United States government. The securities purchased with cash collateral received are reflected in the Summary Portfolio of Investments under Securities Lending Collateral.
Prior to October 1, 2011, the cash collateral was invested in the BNY Mellon Overnight Government Fund (formerly, The BNY Institutional Cash Reserves Fund — Series A) and the BNY Institutional Cash Reserves Fund — Series B (“BICR — Series B”), each a series within the BNY Institutional Cash Reserves Trust (collectively, the “BICR Fund”). BNY serves as investment manager, custodian and operational trustee of the BICR Fund. From the beginning of the period covered by this report through October 16, 2011, BICR-Series B held certain defaulted securities issued by Lehman Brothers Holdings, Inc. (the “Lehman Securities”). The Lehman Securities had market values significantly below amortized cost. On May 22, 2009, the Funds agreed to the terms of a capital support agreement (the “Capital Support Agreement”) extended by The Bank of New York Mellon Corporation (“BNYC”), an affiliated company of BNY, for the Lehman Securities held by BICR- Series B. Under the terms of the Capital Support Agreement, BNYC agreed to support the value of the Lehman Securities up to 80% of the par value (the remaining 20% of the par value represents a realized loss to the Funds) and subject, in part, to the Funds’ continued participation in the BNY securities lending program through September 15, 2011. As of September 15, 2011, the Funds had complied with the requirements under the Capital Support Agreement and therefore the Funds could exercise their right to sell the Lehman Securities to BNYC at a price equal to 80% of par value. The sale of the Lehman Securities was completed on October 17, 2011.
Generally, in the event of counterparty default, the Funds have the right to use the collateral to offset losses incurred. The Agreement contains certain guarantees by BNY in the event of counterparty default and/or a borrower’s failure to return a loaned security; however, there would be a potential loss to the Funds in the event the Funds are delayed or prevented from exercising their right to dispose of the collateral. Engaging in securities lending could have a leveraging effect, which may intensify the credit, market and other risks associated with investing in a Fund.
109
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 14 — SECURITIES LENDING (continued)
At October 31, 2011, the following Funds had securities on loan with the following market values:
Fund
| | | | Value of
Securities
Loaned
| | Cash Collateral
Received
|
|---|
| Emerging Countries | | | | $ | 2,083,910 | | | $ | 2,183,135 | |
| Global Equity Dividend | | | | | 1,197,381 | | | | 1,245,467 | |
| Global Opportunities | | | | | 1,638,726 | | | | 1,758,983 | |
| Global Real Estate | | | | | 12,341,098 | | | | 13,315,857 | |
| Global Value Choice | | | | $ | 16,365,834 | | | $ | 17,062,175 | |
| International Capital Appreciation | | | | | 761,000 | | | | 795,990 | |
| International Growth | | | | | 2,652,822 | | | | 2,785,702 | |
| International SmallCap Multi-Manager | | | | | 248,991 | | | | 285,403 | |
| International Value | | | | | 501,843 | | | | 518,447 | |
| Russia | | | | | 16,462,000 | | | | 17,109,010 | |
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, income from passive foreign investment companies (PFICs), and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as return of capital.
The following permanent tax differences have been reclassified as of October 31, 2011:
| | | | Paid-in
Capital
| | Undistributed
Net Investment Income
on Investments
| | Accumulated
Net Realized
Gains/(Losses)
|
|---|
| Diversified International | | | | $ | 3,478 | | | $ | (3,478 | ) | | $ | — | |
| Emerging Countries | | | | | 268,489 | | | | (535,114 | ) | | | 266,625 | |
| Emerging Markets Equity | | | | | (2,864 | ) | | | (28,875 | ) | | | 31,739 | |
| Global Bond | | | | | — | | | | 805,359 | | | | (805,359 | ) |
| Global Equity Dividend | | | | | 2,384 | | | | (339,875 | ) | | | 337,491 | |
| Global Natural Resources | | | | | (65,866 | ) | | | 61,136 | | | | 4,730 | |
| Global Opportunities | | | | | (308,451 | ) | | | 174,008 | | | | 134,443 | |
Global Real Estate(1)(2) | | | | | — | | | | 76,774,077 | | | | (76,774,077 | ) |
| Global Value Choice | | | | | — | | | | 395,554 | | | | (395,554 | ) |
| Greater China | | | | | (32,805 | ) | | | (81,105 | ) | | | 113,910 | |
| Index Plus International Equity | | | | | — | | | | 315,516 | | | | (315,516 | ) |
| International Capital Appreciation | | | | | — | | | | (79,538 | ) | | | 79,538 | |
| International Core | | | | | (22,334 | ) | | | (920,836 | ) | | | 943,170 | |
| International Growth | | | | | (18,779 | ) | | | (67,334 | ) | | | 86,113 | |
| International Real Estate | | | | | (1 | ) | | | 1,338,451 | | | | (1,338,450 | ) |
| International SmallCap Multi-Manager | | | | | (47,125 | ) | | | (175,728 | ) | | | 222,853 | |
| International Value Choice | | | | | — | | | | 236 | | | | (236 | ) |
| International Value | | | | | (39,960 | ) | | | (74,758 | ) | | | 114,718 | |
| Russia | | | | | (1,263,591 | ) | | | 1,249,849 | | | | 13,742 | |
(1) | | As of the Fund’s tax year ended December 31, 2010. |
(2) | | $77,374,663 relates to the tax treatment of passive foreign investment companies. |
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, 2011
| | Year Ended October 31, 2010
| |
|---|
| | | | Ordinary
Income
| | Return
of Capital
| | Ordinary
Income
| | Return
of Capital
|
|---|
| Diversified International | | | | $ | 1,061,111 | | | $ | 191,335 | | | $ | 927,344 | | | $ | 293,887 | |
| Emerging Countries | | | | | 113,431 | | | | — | | | | — | | | | — | |
| Global Bond | | | | | 32,360,506 | | | | — | | | | 24,041,636 | | | | — | |
| Global Equity Dividend | | | | | 2,094,033 | | | | — | | | | 3,235,341 | | | | — | |
| Global Natural Resources | | | | | 53,412 | | | | — | | | | 302,907 | | | | — | |
110
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 15 — FEDERAL INCOME TAXES (continued)
| | | | Year Ended October 31, 2011
| | Year Ended October 31, 2010
| |
|---|
| | | | Ordinary
Income
| | Return
of Capital
| | Ordinary
Income
| | Return
of Capital
|
|---|
| Global Opportunities | | | | $ | 2,210,341 | | | $ | — | | | $ | — | | | $ | — | |
Global Real Estate(1) | | | | | 96,683,542 | | | | — | | | | 102,494,757 | | | | — | |
| Global Value Choice | | | | | 8,011,477 | | | | — | | | | 1,050,663 | | | | — | |
| Greater China | | | | | 456,558 | | | | — | | | | 676,212 | | | | — | |
| Index Plus International Equity | | | | | 2,092,268 | | | | — | | | | 2,113,264 | | | | — | |
| International Capital Appreciation | | | | | 617,483 | | | | — | | | | — | | | | — | |
| International Real Estate | | | | | 33,254,520 | | | | — | | | | 41,280,971 | | | | — | |
| International SmallCap Multi-Manager | | | | | 2,615,060 | | | | — | | | | 5,964,767 | | | | — | |
| International Value Choice | | | | | 391,851 | | | | — | | | | 364,324 | | | | — | |
| International Value | | | | | 23,226,893 | | | | — | | | | 26,116,194 | | | | — | |
(1) | | Composition of dividends and distributions presented herein is based on the Fund’s tax year-ends of December 31, 2010 and December 31, 2009. |
Global Real Estate estimates that the tax composition of dividends and distributions to shareholders from January 1, 2011 to October 31, 2011 is $37,409,448 ordinary income and $31,875,706 return of capital. The final composition of the tax characteristics of the distributions cannot be determined with certainty until after the end of the calendar year, and will be reported to shareholders at that time.
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, 2011 were:
| | | | Undistributed
Ordinary
Income
| | Undistributed
Long-Term
Capital Gains
| | Unrealized
Appreciation/
(Depreciation)
| | Capital Loss
Carryforwards
| | Expiration
Dates
|
|---|
| Diversified International | | | | $ | — | | | $ | — | | | $ | (6,674,750 | ) | | $ | (28,060,058 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (93,445,922 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | (33,117,873 | ) | | | 2018 | |
| | | | | | | | | | | | | | | | | | (824,702 | ) | | | 2019 | |
| | | | | | | | | | | | | | | | | $ | (155,448,555 | ) | | | | |
| Emerging Countries | | | | | — | | | | — | | | | 8,140,668 | | | | (34,410,065 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (41,200,730 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | $ | (75,610,795 | ) | | | | |
| Emerging Markets Equity | | | | | 170,335 | | | | 238,655 | | | | 5,920,296 | | | | — | | | | — | |
| Global Bond | | | | | 8,144,042 | | | | 6,774,863 | | | | (6,088,537 | ) | | | — | | | | — | |
| Global Equity Dividend | | | | | 145,373 | | | | — | | | | (2,471,040 | ) | | | (11,027,596 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (71,676,150 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | $ | (82,703,746 | ) | | | | |
| Global Natural Resources | | | | | — | | | | — | | | | 12,800,832 | | | | (14,439,138 | ) | | | 2017 | |
| Global Opportunities | | | | | — | | | | — | | | | 3,787,774 | | | | (32,434,268 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (80,200,325 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | $ | (112,634,593 | ) | | | | |
Global Real Estate(1)(2) | | | | | 16,510,527 | | | | — | | | | 395,668,017 | | | | (164,232,218 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (414,424,595 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | (79,668,453 | ) | | | 2018 | |
| | | | | | | | | | | | | | | | | $ | (658,325,266 | ) | | | | |
| Global Value Choice | | | | | 31,929,361 | | | | 29,040,761 | | | | (22,000,980 | ) | | | — | | | | — | |
| Greater China | | | | | — | | | | — | | | | 1,020,998 | | | | (116,039 | ) | | | 2017 | |
| Index Plus International Equity | | | | | 2,232,942 | | | | — | | | | 1,903,233 | | | | (27,339,841 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (46,742,747 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | $ | (74,082,588 | ) | | | | |
| International Capital Appreciation | | | | | 216,672 | | | | — | | | | (2,445,237 | ) | | | (34,958,241 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (14,842,759 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | $ | (49,801,000 | ) | | | | |
| International Core | | | | | 2,806,773 | | | | — | | | | (25,065,340 | ) | | | (16,908,766 | ) | | | 2019 | |
| International Growth | | | | | 3,010,653 | | | | — | | | | (14,187,336 | ) | | | — | | | | — | |
111
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 15 — FEDERAL INCOME TAXES (continued)
| | | | Undistributed
Ordinary
Income
| | Undistributed
Long-Term
Capital Gains
| | Unrealized
Appreciation/
(Depreciation)
| | Capital Loss
Carryforwards
| | Expiration
Dates
|
|---|
| International Real Estate | | | | $ | 1,028,620 | | | $ | — | | | $ | (13,011,772 | ) | | $ | (26,312 | ) | | | 2014 | |
| | | | | | | | | | | | | | | | | | (2,556,095 | ) | | | 2015 | |
| | | | | | | | | | | | | | | | | | (67,952,089 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (159,911,905 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | (43,046,092 | ) | | | 2018 | |
| | | | | | | | | | | | | | | | | | (4,399,061 | ) | | | 2019 | |
| | | | | | | | | | | | | | | | | $ | (277,891,554 | ) | | | | |
| International SmallCap Multi-Manager | | | | | 4,065,962 | | | | — | | | | 1,483,935 | | | | (77,906,736 | ) | | | 2016 | |
| | | | | | | | | | | | | | | | | | (202,973,948 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | $ | (280,880,684 | ) | | | | |
| International Value Choice | | | | | 725,910 | | | | — | | | | (2,450,294 | ) | | | (14,545,893 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | (362,042 | ) | | | 2019 | |
| | | | | | | | | | | | | | | | | $ | (14,907,935 | ) | | | | |
| International Value | | | | | 16,474,089 | | | | — | | | | (96,572,670 | ) | | | (810,539,013 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | (70,133,094 | ) | | | 2018 | |
| | | | | | | | | | | | | | | | | | (8,757,263 | ) | | | 2019 | |
| | | | | | | | | | | | | | | | | $ | (889,429,370 | ) | | | | |
| Russia | | | | | — | | | | — | | | | 60,506,771 | | | | (66,111,223 | ) | | | 2017 | |
| | | | | | | | | | | | | | | | | | (21,810,157 | ) | | | 2018 | |
| | | | | | | | | | | | | | | | | $ | (87,921,380 | ) | | | | |
(1) | | As of the Fund’s tax year ended December 31, 2010. |
(2) | | The Fund also had post-October capital losses deferred of $19,821,259 and post-October currency losses deferred of $79,220. |
| * | | Utilization of these capital losses is subject to annual limitations under Section 382 of the Internal Revenue Code. |
The Funds’ major tax jurisdictions are federal and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2006.
As of October 31, 2011, no provisions for income tax would be required in the Funds’ financial statements as a result of tax positions taken on federal income tax returns for open tax years. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Funds. In general, the provisions of the Act will be effective for the Funds’ tax year ending October 31, 2012. Although the Act provides several benefits, including the unlimited carryforward of future capital losses, there may be a greater likelihood that all or a portion of the Funds’ pre-enactment capital loss carryforwards may expire without being utilized due to the fact that post-enactment capital losses are required to be utilized before pre-enactment capital loss carryforwards. Relevant information regarding the impact of the Act on the Funds, if any, will be contained within the “Federal Income Taxes” section of the financial statement notes for the fiscal year ending October 31, 2012.
NOTE 16 — OTHER ACCOUNTING PRONOUNCEMENTS
In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. generally accepted accounting principles (“GAAP”) and the International Financial Reporting Standards (“IFRSs”). The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. As of October 31, 2011, management of the Funds is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.
112
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 17 — INFORMATION REGARDING TRADING OF ING’S U.S. MUTUAL FUNDS
As discussed in earlier supplements that were previously filed with the SEC, ING agreed with the Funds to indemnify and hold harmless the Funds from all damages resulting from wrongful conduct by ING or its employees or from ING’s internal investigation, any investigations conducted by any governmental or self-regulatory agencies, litigation or other formal proceedings, including any proceedings by the U.S. Securities and Exchange Commission in connection with investigations related to mutual funds and variable insurance products. On December 17, 2008, ING settled its indemnification commitments by making payments to the affected Funds. In connection with the settlement, ING paid:
| Emerging Countries | | | | $ | 1,400,280 | |
| Index Plus International Equity | | | | | 497,810 | |
| International SmallCap Multi-Manager | | | | | 2,661,920 | |
| International Value | | | | | 955,441 | |
On August 28, 2006, the Securities and Exchange Commission (“Commission” or “SEC”) entered into a settlement of an administrative proceeding against Prudential Equity Group, LLC, formerly known as Prudential Securities, Inc. (“PSI” or “Respondent”). As part of the settlement, the Respondent has established the PSI Distribution Fund (“Distribution Fund”) for the benefit of shareholders who may have been affected by the market timing activity in certain mutual funds where such trading was found to have been facilitated by the Respondent, as described in the order. The Fund is comprised of disgorgement in the amount of $270 million which was paid by the Respondent. The dollar amount available for distribution to mutual funds and shareholders of affected mutual funds (“Distributable Amount”) includes the original $270 million plus interest earned by the Distribution Fund.
On February 4, 2010, the SEC issued an order approving the proposed plan of distribution. In connection with this settlement, the following funds received:
| Global Value Choice | | | | $ | 389,524 | |
| Index Plus International Equity | | | | | 14,363 | |
| International Capital Appreciation | | | | | 17,464 | |
| International SmallCap Multi-Manager | | | | | 1,034,530 | |
| International Value | | | | | 2,544,969 | |
On May 7, 2007, the Securities and Exchange Commission (“Commission” or “SEC”) entered into a settlement of an administrative proceeding against Zurich Capital Markets, Inc., (“ZCM” or “Respondent”). As part of the settlement, the Respondent has established a Fair Fund (“Fair Fund”) for the benefit of shareholders who may have been affected by the market timing activity in certain mutual funds where such trading was found to have been facilitated by the Respondent, as described in the order. The Fair Fund is comprised of disgorgement in the amount of approximately $16.8 million which was paid by the Respondent. The dollar amount available for distribution to mutual funds and shareholders of affected mutual funds (“Distributable Amount”) includes the original $16.8 million plus interest earned by the Fair Fund.
On June 3, 2010, the SEC issued an order approving the proposed plan of distribution. In connection with this settlement, the following Funds received:
| International SmallCap Multi-Manager | | | | $ | 136,362 | |
| International Value | | | | | 115,624 | |
NOTE 18 — SUBSEQUENT EVENTS
Dividends: Subsequent to October 31, 2011, the following Funds paid dividends and distributions of:
| | | | Net Investment
Income
| | Short-Term
Capital Gains
| | Long-Term
Capital Gains
| | Payable
Date
| | Record
Date
|
|---|
Emerging Markets Equity | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $ — | | $0.0206 | | $0.0288 | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $ — | | $0.0206 | | $0.0288 | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $ — | | $0.0206 | | $0.0288 | | December 19, 2011 | | December 15, 2011 |
| Class R | | | | $ — | | $0.0206 | | $0.0288 | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $ — | | $0.0206 | | $0.0288 | | December 19, 2011 | | December 15, 2011 |
| |
Global Bond | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.0417 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class B | | | | $0.0345 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class C | | | | $0.0344 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class I | | | | $0.0446 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class O | | | | $0.0417 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class R | | | | $0.0384 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class W | | | | $0.0441 | | $ — | | $ — | | November 2, 2011 | | October 31, 2011 |
| Class A | | | | $0.0415 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
113
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 18 — SUBSEQUENT EVENTS (continued)
| | | | Net Investment
Income
| | Short-Term
Capital Gains
| | Long-Term
Capital Gains
| | Payable
Date
| | Record
Date
|
|---|
Global Bond (continued) | | | | | | | | | | | | | | | | | | | | | | |
| Class B | | | | $0.0344 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
| Class C | | | | $0.0345 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
| Class I | | | | $0.0444 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
| Class O | | | | $0.0415 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
| Class R | | | | $0.0385 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
| Class W | | | | $0.0439 | | $ — | | $ — | | December 2, 2011 | | November 30, 2011 |
| Class A | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| Class O | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| Class R | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $ — | | $0.1476 | | $0.1228 | | December 19, 2011 | | December 15, 2011 |
| |
Global Natural Resources | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.0132 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.0157 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.0159 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| |
Global Value Choice | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.3054 | | $1.4720 | | $1.5798 | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $ — | | $1.4720 | | $1.5798 | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $0.0847 | | $1.4720 | | $1.5798 | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.4300 | | $1.4720 | | $1.5798 | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.3871 | | $1.4720 | | $1.5798 | | December 19, 2011 | | December 15, 2011 |
| |
Index Plus International Equity | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.1853 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $0.0932 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $0.1217 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.2229 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class O | | | | $0.1864 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.2191 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| |
International Capital Appreciation | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.0550 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $ — | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $ — | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.0936 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.0776 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| |
International Core | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | $0.0762 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| |
International Growth | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | $0.1470 | | $0.0374 | | $ — | | December 19, 2011 | | December 15, 2011 |
| |
International SmallCap Multi-Manager | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.5705 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $0.1651 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $0.3323 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.7676 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class O | | | | $0.6457 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.7165 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| |
International Value Choice | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.2727 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $0.1484 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $0.1833 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.3032 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.3013 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
114
NOTES TO FINANCIAL STATEMENTS AS OF OCTOBER 31, 2011 (CONTINUED)
NOTE 18 — SUBSEQUENT EVENTS (continued)
| | | | Net Investment
Income
| | Short-Term
Capital Gains
| | Long-Term
Capital Gains
| | Payable
Date
| | Record
Date
|
|---|
International Value | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | | $0.2786 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class B | | | | $0.1626 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class C | | | | $0.1944 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class I | | | | $0.3320 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
| Class W | | | | $0.3148 | | $ — | | $ — | | December 19, 2011 | | December 15, 2011 |
Effective January 1, 2012, the Internal Revenue Service requires mutual fund companies and brokers to report on Form 1099-B the cost basis on the sale or exchange of Fund shares acquired on or after January 1, 2012 (“covered shares”). If you acquire and hold shares directly through the Fund and not through a Financial Intermediary, the Fund will use an average cost single category methodology for tracking and reporting your cost basis on covered shares, unless you request, in writing, another cost basis reporting methodology.
The Funds have evaluated events occurring after the Statements of Assets and Liabilities date (subsequent events) to determine whether any subsequent events necessitated adjustment to or disclosure in the financial statements. Other than the above, no such subsequent events were identified.
115
PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING DIVERSIFIED INTERNATIONAL FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
AFFILIATED INVESTMENT COMPANIES: 101.5%
|
| 1,818,677 | | | | @ | | ING Emerging Markets Equity Fund — Class I | | $ | 19,532,586 | | | | 15.4 | |
| 4,384,121 | | | | @ | | ING International Core Fund — Class I | | | 38,711,784 | | | | 30.5 | |
| 2,765,024 | | | | @ | | ING International Growth Fund — Class I | | | 25,714,722 | | | | 20.2 | |
| 828,994 | | | | | | ING International Real Estate Fund — Class I | | | 6,482,737 | | | | 5.1 | |
| 364,249 | | | | | | ING International SmallCap Multi-Manager Fund — Class I | | | 12,930,827 | | | | 10.2 | |
| 2,418,625 | | | | | | ING International Value Fund — Class I | | $ | 25,589,049 | | | | 20.1 | |
| |
| | | | | | | Total Investments in Affiliated Investment Companies | | | | | | | | |
| | | | | | | (Cost $127,761,700) | | $ | 128,961,705 | | | | 101.5 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (1,899,264 ) | | | | (1.5 | ) |
| | | | | | | Net Assets | | $ | 127,062,441 | | | | 100.0 | |
| @ | | Non-income producing security |
| | Cost for federal income tax purposes is $135,636,455. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 6,864,852 | |
| Gross Unrealized Depreciation | | | | | (13,539,602 | ) |
| Net Unrealized depreciation | | | | $ | (6,674,750 | ) |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Affiliated Investment Companies | | | | $ | 128,961,705 | | | $ | — | | | $ | — | | | $ | 128,961,705 | |
| Total Investments, at value | | | | $ | 128,961,705 | | | $ | — | | | $ | — | | | $ | 128,961,705 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
116
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING EMERGING COUNTRIES FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 92.2%
|
| |
| 40,797 | | | | | | Banco do Brasil S.A. | | $ | 622,583 | | | | 0.7 | |
| 120,519 | | | | | | BM&F Bovespa S.A. | | | 725,143 | | | | 0.8 | |
| 56,059 | | | | | | BR Malls Participacoes S.A. | | | 608,964 | | | | 0.7 | |
| 34,194 | | | | | | Itau Unibanco Holding SA ADR | | | 653,789 | | | | 0.8 | |
| 80,488 | | | | @ | | OGX Petroleo e Gas Participacoes S.A. | | | 674,152 | | | | 0.8 | |
| 21,502 | | | | | | Petroleo Brasileiro SA ADR | | | 543,785 | | | | 0.6 | |
| 70,847 | | | | | | Petroleo Brasileiro SA | | | 959,840 | | | | 1.1 | |
| 33,485 | | | | | | Vale SA | | | 850,854 | | | | 1.0 | |
| 72,312 | | | | | | Vale SA | | | 1,844,812 | | | | 2.2 | |
| 245,913 | | | | | | Other Securities | | | 3,679,697 | | | | 4.3 | |
| | | | | | | | | | 11,163,619 | | | | 13.0 | |
| |
| |
| 26,695 | | | | | | Pacific Rubiales Energy Corp. | | | 622,415 | | | | 0.7 | |
| |
| |
| 1,946,218 | | | | | | China Construction Bank | | | 1,429,955 | | | | 1.7 | |
| 230,800 | | | | | | China Mobile Ltd. | | | 2,193,602 | | | | 2.5 | |
| 780,700 | | | | | | China Petroleum & Chemical Corp. | | | 738,331 | | | | 0.9 | |
| 766,700 | | | | | | CNOOC Ltd. | | | 1,449,339 | | | | 1.7 | |
| 1,844,325 | | | | | | Industrial and Commercial Bank of China Ltd. | | | 1,151,713 | | | | 1.3 | |
| 9,764,667 | | | | | | Other Securities | | | 7,962,405 | | | | 9.3 | |
| | | | | | | | | | 14,925,345 | | | | 17.4 | |
| |
| |
| 382,800 | | | | | | Other Securities | | | 767,265 | | | | 0.9 | |
| |
| |
| 18,464 | | | | | | Hero Honda Motors Ltd | | | 823,310 | | | | 1.0 | |
| 68,792 | | | | | | Housing Development Finance Corp. | | | 967,800 | | | | 1.1 | |
| 23,362 | | | | | | Larsen & Toubro Ltd. | | | 673,703 | | | | 0.8 | |
| 539,361 | | | | | | Other Securities | | | 4,356,646 | | | | 5.1 | |
| | | | | | | | | | 6,821,459 | | | | 8.0 | |
| |
| |
| 1,063,496 | | | | | | Bank Mandiri Persero TBK PT | | | 848,337 | | | | 1.0 | |
| 163,200 | | | | | | Indo Tambangraya Megah PT | | | 814,134 | | | | 1.0 | |
| 846,600 | | | | | | Telekomunikasi Indonesia Tbk PT | | | 706,053 | | | | 0.8 | |
| | | | | | | | | | 2,368,524 | | | | 2.8 | |
| |
| |
| 17,288 | | | | | | Other Securities | | | 424,248 | | | | 0.5 | |
| |
| |
| 201,600 | | | | @ | | Sands China Ltd. | | | 605,846 | | | | 0.7 | |
| |
| |
| 364,200 | | | | | | Other Securities | | | 820,103 | | | | 1.0 | |
| |
COMMON STOCK: (continued)
|
| |
| 64,506 | | | | | | America Movil SAB de CV ADR | | $ | 1,639,742 | | | | 1.9 | |
| 172,722 | | | | | | Mexichem SA de CV | | | 595,526 | | | | 0.7 | |
| 272,358 | | | | | | Wal-Mart de Mexico SA de CV | | | 703,018 | | | | 0.8 | |
| | | | | | | | | | 2,938,286 | | | | 3.4 | |
| |
| |
| 4,784 | | | | | | Other Securities | | | 330,431 | | | | 0.4 | |
| |
| |
| 5,545 | | | | | | Credicorp Ltd. | | | 603,185 | | | | 0.7 | |
| |
| |
| 2,651,600 | | | | | | Other Securities | | | 376,210 | | | | 0.4 | |
| |
| |
| 29,836 | | | | L | | Eurasia Drilling Company Ltd. GDR | | | 704,130 | | | | 0.8 | |
| 133,073 | | | | | | Gazprom OAO ADR | | | 1,552,962 | | | | 1.8 | |
| 8,136 | | | | | | NovaTek OAO GDR | | | 1,135,199 | | | | 1.4 | |
| 603,766 | | | | | | Sberbank of Russian Federation | | | 1,632,435 | | | | 1.9 | |
| 19,776 | | | | @ | | X5 Retail Group N.V. GDR | | | 592,677 | | | | 0.7 | |
| 106,712 | | | | | | Other Securities | | | 1,049,344 | | | | 1.2 | |
| | | | | | | | | | 6,666,747 | | | | 7.8 | |
| |
| |
| 14,639 | | | | | | AngloGold Ashanti Ltd | | | 661,663 | | | | 0.8 | |
| 69,920 | | | | | | MTN Group Ltd. | | | 1,215,266 | | | | 1.4 | |
| 27,727 | | | | | | Naspers Ltd. | | | 1,315,367 | | | | 1.5 | |
| 207,560 | | | | | | Other Securities | | | 1,441,688 | | | | 1.7 | |
| | | | | | | | | | 4,633,984 | | | | 5.4 | |
| |
| |
| 69,700 | | | | @ | | BS Financial Group, Inc. | | | 767,120 | | | | 0.9 | |
| 2,936 | | | | @ | | E-Mart Co. Ltd. | | | 766,984 | | | | 0.9 | |
| 3,633 | | | | | | Hyundai Mobis | | | 1,039,733 | | | | 1.2 | |
| 32,752 | | | | | | KB Financial Group, Inc. | | | 1,268,874 | | | | 1.5 | |
| 17,594 | | | | | | Kia Motors Corp. | | | 1,127,984 | | | | 1.3 | |
| 2,772 | | | | | | LG Chem Ltd. | | | 894,486 | | | | 1.1 | |
| 2,719 | | | | | | Posco | | | 942,102 | | | | 1.1 | |
| 4,400 | | | | | | Samsung Electronics Co., Ltd. | | | 3,787,789 | | | | 4.4 | |
| 4,230 | | | | | | Samsung Engineering Co. Ltd | | | 863,976 | | | | 1.0 | |
| 9,063 | | | | # | | Samsung Life Insurance Co. Ltd. | | | 702,888 | | | | 0.8 | |
| 4,435 | | | | | | Other Securities | | | 573,720 | | | | 0.7 | |
| | | | | | | | | | 12,735,656 | | | | 14.9 | |
| |
| |
| 579,725 | | | | | | China Life Insurance Co., Ltd. | | | 642,539 | | | | 0.7 | |
| 468,130 | | | | | | Hon Hai Precision Industry Co., Ltd. | | | 1,283,321 | | | | 1.5 | |
See Accompanying Notes to Financial Statements
117
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING EMERGING COUNTRIES FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued)
|
| |
| 36,300 | | | | | | HTC Corp. | | $ | 815,790 | | | | 1.0 | |
| 943,431 | | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 2,299,025 | | | | 2.7 | |
| 2,574,121 | | | | | | Other Securities | | | 3,985,905 | | | | 4.6 | |
| | | | | | | | | | 9,026,580 | | | | 10.5 | |
| |
| |
| 84,600 | | | | | | PTT PCL | | | 834,081 | | | | 1.0 | |
| 127,000 | | | | | | Other Securities | | | 479,977 | | | | 0.5 | |
| | | | | | | | | | 1,314,058 | | | | 1.5 | |
| |
| |
| 143,401 | | | | | | Turk Telekomunikasyon AS | | | 608,181 | | | | 0.7 | |
| 169,725 | | | | | | Other Securities | | | 744,551 | | | | 0.9 | |
| | | | | | | | | | 1,352,732 | | | | 1.6 | |
| |
| |
| 25,260 | | | | | | Other Securities | | | 470,139 | | | | 0.6 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $65,409,751) | | | 78,966,832 | | | | 92.2 | |
| |
EXCHANGE-TRADED FUNDS: 3.7%
|
| 141,310 | | | | | | iShares MSCI Malaysia Index Fund | | | 1,961,383 | | | | 2.3 | |
| 51,558 | | | | | | iShares MSCI Taiwan Index Fund | | | 666,645 | | | | 0.8 | |
| 81,300 | | | | | | Other Securities | | | 518,694 | | | | 0.6 | |
| |
| | | | | | | Total Exchange-Traded Funds | | | | | | | | |
| | | | | | | (Cost $3,107,791) | | | 3,146,722 | | | | 3.7 | |
| |
PREFERRED STOCK: 1.2%
|
| |
| 131,188 | | | | | | Other Securities | | | 1,033,627 | | | | 1.2 | |
| |
| | | | | | | Total Preferred Stock | | | | | | | | |
| | | | | | | (Cost $1,362,707) | | | 1,033,627 | | | | 1.2 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $69,880,249) | | | 83,147,181 | | | | 97.1 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 2.5%
|
| Securities Lending Collateralcc(1): 2.5%
|
| 1,000,000 | | | | | | Cantor Fitzgerald, Repurchase Agreement dated 10/31/11, 0.15%, due 11/01/11 (Principal Amount $1,000,000, collateralized by various U.S. Government Agency Obligations, 0.742%–6.579%, Market Value plus accrued interest $1,020,000, due 11/01/15–03/01/48) | | | 1,000,000 | | | | 1.1 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: (continued)
|
| Securities Lending Collateralcc(1): (continued)
|
| 183,135 | | | | | | Deutsche Bank AG, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $183,135, collateralized by various U.S. Government Agency Obligations, 1.750%–7.000%, Market Value plus accrued interest $186,798, due 07/01/12–10/01/41) | | $ | 183,135 | | | | 0.2 | |
| 1,000,000 | | | | | | Merrill Lynch & Co., Inc., Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $1,000,000 collateralized by various U.S. Government Agency Obligations, 3.000%–6.000%, Market Value plus accrued interest $1,020,069, due 09/01/21–11/01/41) | | | 1,000,000 | | | | 1.2 | |
| | | | | | | | | | 2,183,135 | | | | 2.5 | |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $2,183,135) | | | 2,183,135 | | | | 2.5 | |
| |
| | | | | | | Total Investments in Securities | | | | | | | | |
| | | | | | | (Cost $72,063,384) | | $ | 85,330,316 | | | | 99.6 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 377,935 | | | | 0.4 | |
| | | | | | | Net Assets | | $ | 85,708,251 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | 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. |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| GDR | | Global Depository 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | Cost for federal income tax purposes is $77,187,111. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 18,593,834 | |
| Gross Unrealized Depreciation | | | | | (10,450,629 | ) |
| Net Unrealized appreciation | | | | $ | 8,143,205 | |
See Accompanying Notes to Financial Statements
118
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING EMERGING COUNTRIES FUND
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 10.4 | % |
| Consumer Staples | | | | | 5.2 | |
| Energy | | | | | 13.3 | |
| Financials | | | | | 23.0 | |
| Industrials | | | | | 5.7 | |
| Information Technology | | | | | 12.2 | |
| Materials | | | | | 13.8 | |
| Telecommunications | | | | | 8.9 | |
| Utilities | | | | | 0.9 | |
| Other Long-Term Investments | | | | | 3.7 | |
| Short-Term Investments | | | | | 2.5 | |
| Assets in Excess of Other Liabilities | | | | | 0.4 | |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Brazil | | | | $ | 10,509,830 | | | $ | 653,789 | | | $ | — | | | $ | 11,163,619 | |
| Canada | | | | | 622,415 | | | | — | | | | — | | | | 622,415 | |
| China | | | | | 210,270 | | | | 14,715,075 | | | | — | | | | 14,925,345 | |
| Hong Kong | | | | | — | | | | 767,265 | | | | — | | | | 767,265 | |
| India | | | | | — | | | | 6,821,459 | | | | — | | | | 6,821,459 | |
| Indonesia | | | | | — | | | | 2,368,524 | | | | — | | | | 2,368,524 | |
| Luxembourg | | | | | 424,248 | | | | — | | | | — | | | | 424,248 | |
| Macau | | | | | — | | | | 605,846 | | | | — | | | | 605,846 | |
| Malaysia | | | | | — | | | | 820,103 | | | | — | | | | 820,103 | |
| Mexico | | | | | 2,938,286 | | | | — | | | | — | | | | 2,938,286 | |
| Panama | | | | | 330,431 | | | | — | | | | — | | | | 330,431 | |
| Peru | | | | | 603,185 | | | | — | | | | — | | | | 603,185 | |
| Philippines | | | | | — | | | | 376,210 | | | | — | | | | 376,210 | |
| Russia | | | | | 3,889,527 | | | | 2,777,220 | | | | — | | | | 6,666,747 | |
| South Africa | | | | | — | | | | 4,633,984 | | | | — | | | | 4,633,984 | |
| South Korea | | | | | 766,984 | | | | 11,968,672 | | | | — | | | | 12,735,656 | |
| Taiwan | | | | | — | | | | 9,026,580 | | | | — | | | | 9,026,580 | |
| Thailand | | | | | — | | | | 1,314,058 | | | | — | | | | 1,314,058 | |
| Turkey | | | | | 608,181 | | | | 744,551 | | | | — | | | | 1,352,732 | |
| United Kingdom | | | | | — | | | | 470,139 | | | | — | | | | 470,139 | |
| Total Common Stock | | | | | 20,903,357 | | | | 58,063,475 | | | | — | | | | 78,966,832 | |
| Exchange-Traded Funds | | | | | 3,146,722 | | | | — | | | | — | | | | 3,146,722 | |
| Preferred Stock | | | | | 1,033,627 | | | | — | | | | — | | | | 1,033,627 | |
| Short-Term Investments | | | | | — | | | | 2,183,135 | | | | — | | | | 2,183,135 | |
| Total Investments, at value | | | | $ | 25,083,706 | | | $ | 60,246,610 | | | $ | — | | | $ | 85,330,316 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
119
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING EMERGING COUNTRIES FUND
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred Stock | | | | $ | 683,409 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (683,409 | ) | | $ | — | |
| Short-Term Investments | | | | | 129,292 | | | | — | | | | (129,292 | ) | | | — | | | | (32,323 | ) | | | 32,323 | | | | — | | | | — | | | | — | |
| Total Investments, at value | | | | $ | 812,701 | | | $ | — | | | $ | (129,292 | ) | | $ | — | | | $ | (32,323 | ) | | $ | 32,323 | | | $ | — | | | $ | (683,409 | ) | | $ | — | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
120
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING EMERGING MARKETS EQUITY FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 87.1%
|
| |
| 13,800 | | | | | | Other Securities | | $ | 277,104 | | | | 0.3 | |
| |
| |
| 53,800 | | | | | | BRF — Brasil Foods SA ADR | | | 1,132,490 | | | | 1.3 | |
| 25,900 | | | | | | Cia de Bebidas das Americas ADR | | | 873,348 | | | | 1.0 | |
| 70,700 | | | | | | Gerdau SA ADR | | | 637,714 | | | | 0.7 | |
| 76,300 | | | | | | Itau Unibanco Holding SA ADR | | | 1,458,856 | | | | 1.6 | |
| 110,700 | | | | | | Petroleo Brasileiro SA ADR | | | 2,924,647 | | | | 3.2 | |
| 33,600 | | | | | | Telefonica Brasil SA ADR | | | 975,072 | | | | 1.1 | |
| 71,000 | | | | | | Vale SA ADR | | | 1,675,600 | | | | 1.9 | |
| 43,900 | | | | | | Vale SA | | | 1,115,499 | | | | 1.2 | |
| 262,600 | | | | | | Other Securities | | | 3,812,303 | | | | 4.2 | |
| | | | | | | | | | 14,605,529 | | | | 16.2 | |
| |
| |
| 2,637,000 | | | | | | Bank of China Ltd. | | | 938,991 | | | | 1.0 | |
| 424,000 | | | | | | China Coal Energy Co. — Class H | | | 528,363 | | | | 0.6 | |
| 1,996,000 | | | | | | China Construction Bank | | | 1,467,249 | | | | 1.6 | |
| 29,000 | | | | | | China Mobile Ltd. | | | 275,761 | | | | 0.3 | |
| 169,500 | | | | | | China Shenhua Energy Co., Ltd. | | | 775,807 | | | | 0.9 | |
| 31,500 | | | | | | China Unicom Hong Kong Ltd. ADR | | | 633,465 | | | | 0.7 | |
| 453,000 | | | | | | CNOOC Ltd. | | | 856,752 | | | | 1.0 | |
| 70,000 | | | | | | Hengan International Group Co., Ltd. | | | 607,081 | | | | 0.7 | |
| 2,236,000 | | | | | | Industrial and Commercial Bank of China Ltd. | | | 1,396,983 | | | | 1.5 | |
| 2,600 | | | | | | PetroChina Co., Ltd. ADR | | | 336,986 | | | | 0.4 | |
| 764,000 | | | | | | PetroChina Co., Ltd. | | | 992,305 | | | | 1.1 | |
| 86,000 | | | | | | Ping An Insurance Group Co. of China Ltd. | | | 638,122 | | | | 0.7 | |
| 3,027,000 | | | | | | Other Securities | | | 3,977,196 | | | | 4.4 | |
| | | | | | | | | | 13,425,061 | | | | 14.9 | |
| |
| |
| 15,400 | | | | | | China Mobile Ltd. ADR | | | 732,424 | | | | 0.8 | |
| 3,200 | | | | | | CNOOC Ltd. ADR | | | 603,552 | | | | 0.7 | |
| 1,735,600 | | | | | | Other Securities | | | 2,054,085 | | | | 2.3 | |
| | | | | | | | | | 3,390,061 | | | | 3.8 | |
| |
| |
| 13,800 | | | | | | Infosys Technologies Ltd. ADR | | | 808,542 | | | | 0.9 | |
| 25,000 | | | | # | | Reliance Industries Ltd. GDR | | | 903,851 | | | | 1.0 | |
| 9,200 | | | | | | Other Securities | | | 341,872 | | | | 0.4 | |
| | | | | | | | | | 2,054,265 | | | | 2.3 | |
| |
| |
| 261,500 | | | | | | Tambang Batubara Bukit Asam Tbk PT | | | 536,253 | | | | 0.6 | |
| 177,500 | | | | | | Other Securities | | | 488,223 | | | | 0.5 | |
| | | | | | | | | | 1,024,476 | | | | 1.1 | |
| |
COMMON STOCK: (continued)
|
| |
| 37,600 | | | | | | Other Securities | | $ | 447,390 | | | | 0.5 | |
| |
| |
| 17,900 | | | | | | Other Securities | | | 304,329 | | | | 0.3 | |
| |
| |
| 739,900 | | | | | | Other Securities | | | 526,025 | | | | 0.6 | |
| |
| |
| 145,400 | | | | @ | | Cemex SAB de CV ADR | | | 635,398 | | | | 0.7 | |
| 42,700 | | | | | | Grupo Televisa SAB ADR | | �� | 910,791 | | | | 1.0 | |
| 377,064 | | | | | | Other Securities | | | 1,584,875 | | | | 1.8 | |
| | | | | | | | | | 3,131,064 | | | | 3.5 | |
| |
| |
| 43,000 | | | | | | Other Securities | | | 472,140 | | | | 0.5 | |
| |
| |
| 5,600 | | | | | | Other Securities | | | 229,208 | | | | 0.2 | |
| |
| |
| 88,900 | | | | | | Gazprom OAO ADR | | | 1,037,463 | | | | 1.1 | |
| 23,900 | | | | | | Lukoil-Spon | | | 1,390,980 | | | | 1.5 | |
| 31,500 | | | | | | MMC Norilsk Nickel ADR | | | 614,277 | | | | 0.7 | |
| 50,700 | | | | | | Mobile Telesystems OJSC ADR | | | 724,503 | | | | 0.8 | |
| 148,700 | | | | @ | | Sberbank of Russia ADR | | | 1,620,830 | | | | 1.8 | |
| 99,600 | | | | | | Other Securities | | | 1,328,744 | | | | 1.5 | |
| | | | | | | | | | 6,716,797 | | | | 7.4 | |
| |
| |
| 24,300 | | | | | | Exxaro Resources Ltd. | | | 547,455 | | | | 0.6 | |
| 9,800 | | | | | | Sasol Ltd. ADR | | | 443,352 | | | | 0.5 | |
| 17,300 | | | | | | Sasol Ltd. | | | 781,870 | | | | 0.9 | |
| 19,700 | | | | | | Tiger Brands Ltd. | | | 568,086 | | | | 0.6 | |
| 84,125 | | | | | | Vodacom Group Pty Ltd. | | | 953,710 | | | | 1.1 | |
| 140,780 | | | | | | Other Securities | | | 2,375,779 | | | | 2.6 | |
| | | | | | | | | | 5,670,252 | | | | 6.3 | |
| |
| |
| 15,100 | | | | | | Hana Financial Group, Inc. | | | 539,423 | | | | 0.6 | |
| 4,500 | | | | | | Hyundai Motor Co. | | | 906,248 | | | | 1.0 | |
| 20,700 | | | | | | KB Financial Group, Inc. ADR | | | 808,335 | | | | 0.9 | |
| 3,145 | | | | | | KCC Corp. | | | 762,329 | | | | 0.9 | |
| 33,700 | | | | | | KT Corp. ADR | | | 562,116 | | | | 0.6 | |
| 2,233 | | | | | | Samsung Electronics Co., Ltd. | | | 1,922,303 | | | | 2.1 | |
| 4,800 | | | | @ | | Samsung Electronics Co., Ltd. GDR | | | 2,057,271 | | | | 2.3 | |
| 3,920 | | | | # | | Samsung Life Insurance Co. Ltd. | | | 304,019 | | | | 0.3 | |
| 196,640 | | | | | | Other Securities | | | 5,899,869 | | | | 6.5 | |
| | | | | | | | | | 13,761,913 | | | | 15.2 | |
| |
See Accompanying Notes to Financial Statements
121
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING EMERGING MARKETS EQUITY FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 21,800 | | | | | | Chunghwa Telecom Co. Ltd. ADR | | $ | 733,134 | | | | 0.8 | |
| 134,400 | | | | | | Hon Hai Precision Industry Co., Ltd. | | | 751,698 | | | | 0.8 | |
| 337,000 | | | | | | Hon Hai Precision Industry Co., Ltd. | | | 923,844 | | | | 1.0 | |
| 251,000 | | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 611,656 | | | | 0.7 | |
| 109,700 | | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 1,384,414 | | | | 1.6 | |
| 976,000 | | | | | | Other Securities | | | 714,983 | | | | 0.8 | |
| | | | | | | | | | 5,119,729 | | | | 5.7 | |
| |
| |
| 558,200 | | | | | | Charoen Pokphand Foods PCL | | | 544,892 | | | | 0.6 | |
| 115,800 | | | | | | PTT PCL | | | 1,141,686 | | | | 1.3 | |
| 123,600 | | | | | | Other Securities | | | 809,442 | | | | 0.9 | |
| | | | | | | | | | 2,496,020 | | | | 2.8 | |
| |
| |
| 27,700 | | | | | | Other Securities | | | 341,264 | | | | 0.4 | |
| |
| |
| 340,500 | | | | | | Other Securities | | | 949,790 | | | | 1.0 | |
| |
| |
| 32,200 | | | | | | Archer-Daniels-Midland Co. | | | 931,868 | | | | 1.0 | |
| 82,700 | | | | | | Avon Products, Inc. | | | 1,511,756 | | | | 1.7 | |
| 53,000 | | | | @ | | Yahoo!, Inc. | | | 828,920 | | | | 0.9 | |
| 7,300 | | | | | | Other Securities | | | 450,921 | | | | 0.5 | |
| | | | | | | | | | 3,723,465 | | | | 4.1 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $73,055,010) | | | 78,665,882 | | | | 87.1 | |
| |
EXCHANGE-TRADED FUNDS: 3.7%
|
| 20,600 | | | | | | iShares MSCI Brazil Index Fund | | | 1,284,822 | | | | 1.4 | |
| 50,100 | | | | | | iShares MSCI Emerging Markets Index Fund | | | 2,044,080 | | | | 2.3 | |
| |
EXCHANGE-TRADED FUNDS: (continued)
|
| |
| | | | | | | Total Exchange-Traded Funds | | | | | | | | |
| | | | | | | (Cost $3,085,223) | | $ | 3,328,902 | | | | 3.7 | |
| |
| | | | | | | Total Investments in Securities | | | | | | | | |
| | | | | | | (Cost $76,140,233) | | $ | 81,994,784 | | | | 90.8 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 8,259,677 | | | | 9.2 | |
| | | | | | | Net Assets | | $ | 90,254,461 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| # | | 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. |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| GDR | | Global Depository Receipt |
Cost for federal income tax purposes is the same as for financial statement purposes.
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 6,252,437 | |
| Gross Unrealized Depreciation | | | | | (397,886 | ) |
| Net Unrealized appreciation | | | | $ | 5,854,551 | |
Sector Diversification
| | | | Percentage of
Net Assets
|
|---|
| Consumer Discretionary | | | | | 4.8 | % |
| Consumer Staples | | | | | 11.5 | |
| Energy | | | | | 16.3 | |
| Financials | | | | | 14.7 | |
| Industrials | | | | | 5.0 | |
| Information Technology | | | | | 13.1 | |
| Materials | | | | | 10.9 | |
| Telecommunications | | | | | 10.0 | |
| Utilities | | | | | 0.8 | |
| Other Long-Term Investments | | | | | 3.7 | |
| Assets in Excess of Other Liabilities | | | | | 9.2 | |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
122
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING EMERGING MARKETS EQUITY FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Argentina | | | | $ | 277,104 | | | $ | — | | | $ | — | | | $ | 277,104 | |
| Brazil | | | | | 13,146,673 | | | | 1,458,856 | | | | — | | | | 14,605,529 | |
| China | | | | | 1,902,287 | | | | 11,522,774 | | | | — | | | | 13,425,061 | |
| Hong Kong | | | | | 1,823,464 | | | | 1,566,597 | | | | — | | | | 3,390,061 | |
| India | | | | | 1,150,414 | | | | 903,851 | | | | — | | | | 2,054,265 | |
| Indonesia | | | | | — | | | | 1,024,476 | | | | — | | | | 1,024,476 | |
| Israel | | | | | — | | | | 447,390 | | | | — | | | | 447,390 | |
| Kazakhstan | | | | | — | | | | 304,329 | | | | — | | | | 304,329 | |
| Malaysia | | | | | — | | | | 526,025 | | | | — | | | | 526,025 | |
| Mexico | | | | | 3,131,064 | | | | — | | | | — | | | | 3,131,064 | |
| Netherlands | | | | | 472,140 | | | | — | | | | — | | | | 472,140 | |
| Peru | | | | | 229,208 | | | | — | | | | — | | | | 229,208 | |
| Russia | | | | | 4,773,776 | | | | 1,943,021 | | | | — | | | | 6,716,797 | |
| South Africa | | | | | 443,352 | | | | 5,226,900 | | | | — | | | | 5,670,252 | |
| South Korea | | | | | 2,375,666 | | | | 11,386,247 | | | | — | | | | 13,761,913 | |
| Taiwan | | | | | 2,117,548 | | | | 3,002,181 | | | | — | | | | 5,119,729 | |
| Thailand | | | | | — | | | | 2,496,020 | | | | — | | | | 2,496,020 | |
| Turkey | | | | | 341,264 | | | | — | | | | — | | | | 341,264 | |
| United Kingdom | | | | | — | | | | 949,790 | | | | — | | | | 949,790 | |
| United States | | | | | 3,723,465 | | | | — | | | | — | | | | 3,723,465 | |
| Total Common Stock | | | | | 35,907,425 | | | | 42,758,457 | | | | — | | | | 78,665,882 | |
| Exchange-Traded Funds | | | | | 3,328,902 | | | | — | | | | — | | | | 3,328,902 | |
| Total Investments, at value | | | | $ | 39,236,327 | | | $ | 42,758,457 | | | $ | — | | | $ | 81,994,784 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Futures | | | | | 419,911 | | | | — | | | | — | | | | 419,911 | |
| Total Assets | | | | $ | 39,656,238 | | | $ | 42,758,457 | | | $ | — | | | $ | 82,414,695 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2011 was as follows:
Derivatives not accounted for as
hedging instruments
| | | | Location on Statement
of Assets and Liabilities
| | Fair Value
|
|---|
Asset Derivatives | | | | | | | | | | |
| Equity contracts | | | | Net Assets — Unrealized appreciation*
| | | $419,911 | |
Total Asset Derivatives | | | | | | | $419,911 | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the table following the Summary Portfolio of Investments. |
See Accompanying Notes to Financial Statements
123
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING EMERGING MARKETS EQUITY FUND
The effect of derivative instruments on the Fund’s Statement of Operations for the period ended October 31, 2011 was as follows:
| | | | Amount of Realized Gain or (Loss)
on Derivatives Recognized in Income |
|---|
Derivatives not accounted for as hedging instruments
| | | | Futures
|
|---|
| Credit contracts | | | | | $49,413 | |
Total | | | | | $49,413 | |
| | | | Change in Unrealized Appreciation
or (Depreciation) on Derivatives
Recognized in Income |
|---|
Derivatives not accounted for as hedging instruments
| | | | Futures
|
|---|
| Credit contracts | | | | | $419,911 | |
Total | | | | | $419,911 | |
ING Emerging Markets Equity Fund Open Futures Contracts on October 31, 2011:
Contract Description
| | | | Number
of Contracts
| | Expiration Date
| | Notional Value
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
Long Contracts
| | | | | | | | | | | | | | | | | | |
| Mini MSCI Emerging Markets Index | | | | | 104 | | | | 12/16/11 | | | $ | 5,078,320 | | | $ | 368,533 | |
| SGX S&P CNX Nifty Index | | | | | 117 | | | | 11/24/11 | | | | 1,251,198 | | | | 51,378 | |
| | | | | | | | | | | | | $ | 6,329,518 | | | $ | 419,911 | |
See Accompanying Notes to Financial Statements
124
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GLOBAL BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
CORPORATE BONDS/NOTES: 24.8%
|
| |
| 302,000 | | | | | | Other Securities | | $ | 329,180 | | | | 0.0 | |
| |
| |
| 680,000 | | | | # | | FMG Resources August 2006 Pty Ltd, 6.375%, 02/01/16 | | | 663,000 | | | | 0.1 | |
| 350,000 | | | | # | | FMG Resources August 2006 Pty Ltd., 7.000%, 11/01/15 | | | 351,750 | | | | 0.1 | |
| | | | | | | | | | 1,014,750 | | | | 0.2 | |
| |
| |
| 875,000 | | | | | | Other Securities | | | 870,625 | | | | 0.1 | |
| |
| |
| 1,945,000 | | | | # | | Banco do Brasil SA, 5.875%, 01/26/22 | | | 1,974,175 | | | | 0.3 | |
| BRL 3,899,000 | | | | # | | Banco Votorantim SA, 6.250%, 05/16/16 | | | 2,390,248 | | | | 0.4 | |
| 1,000,000 | | | | # | | JBS Finance II Ltd., 8.250%, 01/29/18 | | | 935,000 | | | | 0.1 | |
| 1,250,000 | | | | # | | QGOG Atlantic/ Alaskan Rigs Ltd., 5.250%, 07/30/18 | | | 1,271,875 | | | | 0.2 | |
| 400,000 | | | | # | | Rearden G Holdings EINS GmbH, 7.875%, 03/30/20 | | | 397,000 | | | | 0.1 | |
| 588,000 | | | | # | | Voto-Votorantim Ltd., 6.750%, 04/05/21 | | | 621,810 | | | | 0.1 | |
| 3,829,000 | | | | | | Other Securities | | | 3,968,024 | | | | 0.6 | |
| | | | | | | | | | 11,558,132 | | | | 1.8 | |
| |
| |
| 445,000 | | | | # | | Bombardier, Inc., 7.500%, 03/15/18 | | | 487,275 | | | | 0.1 | |
| 900,000 | | | | # | | Bombardier, Inc., 7.750%, 03/15/20 | | | 994,500 | | | | 0.1 | |
| 575,000 | | | | | | Other Securities | | | 649,750 | | | | 0.1 | |
| | | | | | | | | | 2,131,525 | | | | 0.3 | |
| |
| |
| 650,000 | | | | # | | IPIC GMTN Ltd., 5.500%, 03/01/22 | | | 647,400 | | | | 0.1 | |
| 1,185,000 | | | | | | Other Securities | | | 1,279,800 | | | | 0.2 | |
| | | | | | | | | | 1,927,200 | | | | 0.3 | |
| |
| |
| 1,560,000 | | | | | | Inversiones CMPC SA, 4.750%, 01/19/18 | | | 1,637,520 | | | | 0.3 | |
| 672,000 | | | | # | | Inversiones CMPC SA, 4.750%, 01/19/18 | | | 705,393 | | | | 0.1 | |
| 645,000 | | | | # | | Inversiones CMPC SA, 6.125%, 11/05/19 | | | 725,664 | | | | 0.1 | |
| 470,000 | | | | | | Other Securities | | | 563,307 | | | | 0.1 | |
| | | | | | | | | | 3,631,884 | | | | 0.6 | |
| |
| |
| 200,000 | | | | # | | ENN Energy Holdings Ltd., 6.000%, 05/13/21 | | | 213,217 | | | | 0.0 | |
| |
CORPORATE BONDS/NOTES: (continued)
|
| |
| 250,000 | | | | # | | Mega Advance Investments Ltd., 6.375%, 05/12/41 | | $ | 254,089 | | | | 0.1 | |
| | | | | | | | | | 467,306 | | | | 0.1 | |
| |
| |
| 9,330,000 | | | | # | | Citigroup Funding, Inc., 11.000%, 07/27/20 | | | 8,677,273 | | | | 1.4 | |
| |
| |
| 904,000 | | | | | | Other Securities | | | 975,093 | | | | 0.2 | |
| |
| |
| 300,000 | | | | # | | Reliance Holdings USA, Inc., 6.250%, 10/19/40 | | | 301,111 | | | | 0.0 | |
| |
| |
| 1,358,000 | | | | | | Other Securities | | | 1,370,678 | | | | 0.2 | |
| |
| |
| 1,000,000 | | | | # | | KazMunayGas National Co., 11.750%, 01/23/15 | | | 1,217,500 | | | | 0.2 | |
| 765,000 | | | | | | Other Securities | | | 797,512 | | | | 0.1 | |
| | | | | | | | | | 2,015,012 | | | | 0.3 | |
| |
| |
| 575,000 | | | | | | Other Securities | | | 605,187 | | | | 0.1 | |
| |
| |
| 1,970,000 | | | | | | America Movil SAB de CV, 6.125%, 03/30/40 | | | 2,343,676 | | | | 0.4 | |
| 2,190,000 | | | | | | Southern Copper Corp., 6.750%, 04/16/40 | | | 2,333,335 | | | | 0.4 | |
| 1,336,000 | | | | | | Other Securities | | | 1,499,660 | | | | 0.2 | |
| | | | | | | | | �� | 6,176,671 | | | | 1.0 | |
| |
| |
| 1,133,000 | | | | | | Other Securities | | | 1,244,679 | | | | 0.2 | |
| |
| |
| 440,000 | | | | # | | Nakilat, Inc., 6.067%, 12/31/33 | | | 480,700 | | | | 0.1 | |
| |
| |
| 400,000 | | | | # | | Vnesheconombank Via VEB Finance Ltd., 6.902%, 07/09/20 | | | 434,000 | | | | 0.1 | |
| |
| |
| 2,232,000 | | | | # | | Gold Fields Orogen Holding BVI Ltd., 4.875%, 10/07/20 | | | 2,088,268 | | | | 0.3 | |
| |
| |
| 627,000 | | | | # | | Barclays Bank PLC, 6.050%, 12/04/17 | | | 605,616 | | | | 0.1 | |
| 300,000 | | | | # | | Intelsat Jackson Holdings Ltd., 7.250%, 10/15/20 | | | 301,500 | | | | 0.0 | |
See Accompanying Notes to Financial Statements
125
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
CORPORATE BONDS/NOTES: (continued)
|
| United Kingdom: (continued)
|
| 325,000 | | | | # | | Intelsat Jackson Holdings SA, 7.500%, 04/01/21 | | $ | 327,438 | | | | 0.1 | |
| 665,000 | | | | # | | Lloyds TSB Bank PLC, 6.500%, 09/14/20 | | | 622,054 | | | | 0.1 | |
| 1,661,000 | | | | | | Other Securities | | | 1,767,638 | | | | 0.3 | |
| | | | | | | | | | 3,624,246 | | | | 0.6 | |
| |
| |
| 426,000 | | | | # | | Allegheny Energy Supply Co. LLC, 5.750%, 10/15/19 | | | 465,831 | | | | 0.1 | |
| 735,000 | | | | # | | AMC Networks, Inc., 7.750%, 07/15/21 | | | 801,150 | | | | 0.1 | |
| 847,000 | | | | | | American Express Credit Corp., 2.750%, 09/15/15 | | | 859,251 | | | | 0.2 | |
| 1,871,000 | | | | | | American Express Credit Corp., 5.125%, 08/25/14 | | | 2,035,573 | | | | 0.3 | |
| 785,000 | | | | # | | Arch Coal, Inc., 7.250%, 06/15/21 | | | 812,475 | | | | 0.1 | |
| 2,040,000 | | | | | | AT&T, Inc., 2.500%, 08/15/15 | | | 2,102,863 | | | | 0.3 | |
| 590,000 | | | | # | | Calpine Corp., 7.875%, 07/31/20 | | | 635,725 | | | | 0.1 | |
| 250,000 | | | | # | | Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc., 6.625%, 11/15/19 | | | 257,500 | | | | 0.0 | |
| 473,000 | | | | # | | Chevron Phillips Chemical Co. LLC, 8.250%, 06/15/19 | | | 592,910 | | | | 0.1 | |
| 10,746,000 | | | | # | | Citigroup Funding, Inc., 11.000%, 07/27/20 | | | 10,471,870 | | | | 1.6 | |
| 1,208,000 | | | | | | Citigroup, Inc., 5.000%–8.500%, 09/15/14–05/22/19 | | | 1,312,223 | | | | 0.2 | |
| 720,000 | | | | # | | Delphi Corp., 5.875%, 05/15/19 | | | 734,400 | | | | 0.1 | |
| 785,000 | | | | # | | Endo Pharmaceuticals Holdings, Inc., 7.250%, 01/15/22 | | | 849,762 | | | | 0.1 | |
| 1,982,000 | | | | | | Goldman Sachs Group, Inc., 5.375%, 03/15/20 | | | 2,018,752 | | | | 0.3 | |
| 991,000 | | | | # | | Hyatt Hotels Corp., 6.875%, 08/15/19 | | | 1,095,438 | | | | 0.2 | |
| 2,632,000 | | | | | | Kellogg Co., 4.000%, 12/15/20 | | | 2,873,660 | | | | 0.5 | |
| 500,000 | | | | # | | Kinder Morgan Finance Co. LLC, 6.000%, 01/15/18 | | | 515,000 | | | | 0.1 | |
| 525,000 | | | | # | | Mylan, Inc./PA, 7.875%, 07/15/20 | | | 590,625 | | | | 0.1 | |
| 1,055,000 | | | | # | | Oracle Corp., 5.375%, 07/15/40 | | | 1,280,248 | | | | 0.2 | |
| 857,000 | | | | # | | Pacific Life Insurance Co., 9.250%, 06/15/39 | | | 1,157,211 | | | | 0.2 | |
| |
CORPORATE BONDS/NOTES: (continued)
|
| United States: (continued)
|
| 350,000 | | | | # | | Sealed Air Corp., 8.375%, 09/15/21 | | $ | 379,750 | | | | 0.1 | |
| 2,078,000 | | | | | | St. Jude Medical, Inc., 2.500%, 01/15/16 | | | 2,136,049 | | | | 0.3 | |
| 1,702,000 | | | | | | Time Warner Cable, Inc., 5.875%–6.750%, 06/15/39–11/15/40 | | | 2,014,293 | | | | 0.3 | |
| 1,481,000 | | | | | | Time Warner, Inc., 7.700%, 05/01/32 | | | 1,946,169 | | | | 0.3 | |
| 400,000 | | | | # | | Valeant Pharmaceuticals International, 7.000%, 10/01/20 | | | 398,000 | | | | 0.1 | |
| 720,000 | | | | # | | Valeant Pharmaceuticals International, 7.250%, 07/15/22 | | | 712,800 | | | | 0.1 | |
| 735,000 | | | | # | | XM Satellite Radio, Inc., 7.625%, 11/01/18 | | | 795,637 | | | | 0.1 | |
| 59,879,000 | | | | | | Other Securities | | | 65,712,929 | | | | 10.4 | |
| | | | | | | | | | 105,558,094 | | | | 16.6 | |
| |
| |
| 2,212,000 | | | | # | | Petroleos de Venezuela SA, 12.750%, 02/17/22 | | | 1,791,720 | | | | 0.3 | |
| |
| | | | | | | Total Corporate Bonds/Notes | | | | | | | | |
| | | | | | | (Cost $150,267,928) | | | 157,273,334 | | | | 24.8 | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS: 8.2%
|
| |
| 1,685,000 | | | | # | | American General Mortgage Loan Trust, 5.750%, 09/25/48 | | | 1,713,902 | | | | 0.3 | |
| 2,467,605 | | | | | | Banc of America Alternative Loan Trust, 4.750%, 02/25/19 | | | 2,519,215 | | | | 0.4 | |
| 630,000 | | | | # | | Banc of America Large Loan, Inc., 6.010%, 10/10/45 | | | 570,583 | | | | 0.1 | |
| 2,048,969 | | | | | | Chase Mortgage Finance Corp., 5.480%, 12/25/35 | | | 1,865,258 | | | | 0.3 | |
| 2,746,500 | | | | | | Credit Suisse Mortgage Capital Certificates, 5.589%, 09/15/40 | | | 2,792,997 | | | | 0.4 | |
| 356,350 | | | | | | CW Capital Cobalt Ltd., 5.174%, 08/15/48 | | | 359,120 | | | | 0.0 | |
| 2,389,521 | | | | | | CW Capital Cobalt Ltd., 5.736%, 05/15/46 | | | 2,429,710 | | | | 0.4 | |
| 1,000,000 | | | | # | | DBUBS Mortgage Trust, 5.557%, 11/10/46 | | | 795,456 | | | | 0.1 | |
| 2,338,809 | | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.247%, 01/12/43 | | | 2,365,936 | | | | 0.4 | |
| 440,000 | | | | # | | JP Morgan Chase Commercial Mortgage Securities Corp., 5.389%, 07/15/46 | | | 320,645 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
126
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COLLATERALIZED MORTGAGE OBLIGATIONS: (continued)
|
| United States: (continued)
|
| 1,510,000 | | | | | | JP Morgan Chase Commercial Mortgage Securities Corp., 4.981%–6.288%, 01/15/42–02/12/51 | | $ | 1,392,143 | | | | 0.2 | |
| 260,000 | | | | # | | LB-UBS Commercial Mortgage Trust, 5.750%, 01/15/36 | | | 266,030 | | | | 0.1 | |
| 4,530,000 | | | | | | LB-UBS Commercial Mortgage Trust, 4.986%–5.890%, 06/15/38–09/15/45 | | | 4,042,438 | | | | 0.6 | |
| 2,300,000 | | | | | | Merrill Lynch/Countrywide Commercial Mortgage Trust, 5.331%, 03/12/51 | | | 2,319,182 | | | | 0.4 | |
| 2,619,065 | | | | | | Morgan Stanley Capital I, 5.591%, 04/12/49 | | | 2,695,771 | | | | 0.4 | |
| 980,000 | | | | # | | Morgan Stanley Capital I, 5.256%, 09/15/47 | | | 793,507 | | | | 0.1 | |
| 1,330,000 | | | | # | | Morgan Stanley Capital I, 5.397%, 01/13/41 | | | 1,302,402 | | | | 0.2 | |
| 1,200,313 | | | | | | Morgan Stanley Capital I, 0.493%–5.242%, 01/14/42–04/12/49 | | | 1,151,299 | | | | 0.2 | |
| 190,000 | | | | # | | Morgan Stanley Dean Witter Capital I, 6.500%, 11/15/36 | | | 96,719 | | | | 0.0 | |
| 3,056,328 | | | | + | | Structured Asset Securities Corp., 2.434%–5.000%, 09/25/33–05/25/35 | | | 3,007,215 | | | | 0.5 | |
| 630,000 | | | | | | Wachovia Bank Commercial Mortgage Trust, 5.383%, 12/15/43 | | | 491,747 | | | | 0.1 | |
| 2,601,167 | | | | | | Wachovia Bank Commercial Mortgage Trust, 5.737%, 06/15/49 | | | 2,660,384 | | | | 0.4 | |
| 627,000 | | | | # | | Wachovia Bank Commercial Mortgage Trust, 5.704%, 02/15/35 | | | 614,515 | | | | 0.1 | |
| 3,376,844 | | | | | | Wells Fargo Mortgage Backed Securities Trust, 2.710%–5.245%, 05/25/35–11/25/36 | | | 3,216,074 | | | | 0.5 | |
| 2,080,400 | | | | | | Wells Fargo Mortgage-Backed Securities Trust, 5.353%, 08/25/35 | | | 2,003,491 | | | | 0.3 | |
| 11,145,521 | | | | | | Other Securities | | | 10,348,801 | | | | 1.6 | |
| |
| | | | | | | Total Collateralized Mortgage Obligations | | | | | | | | |
| | | | | | | (Cost $53,624,759) | | | 52,134,540 | | | | 8.2 | |
| |
U.S. TREASURY OBLIGATIONS: 11.1%
|
| U.S. Treasury Bonds: 2.2%
|
| 6,502,000 | | | | | | 2.125%, due 08/15/21 | | | 6,497,943 | | | | 1.0 | |
| 6,127,000 | | | | | | 4.375%, due 05/15/41 | | | 7,594,643 | | | | 1.2 | |
| | | | | | | | | | 14,092,586 | | | | 2.2 | |
| |
| U.S. Treasury Notes: 8.9%
|
| 8,162,000 | | | | | | 0.125%, due 09/30/13 | | | 8,143,848 | | | | 1.3 | |
| |
U.S. TREASURY OBLIGATIONS: (continued)
|
| U.S. Treasury Notes: (continued)
|
| 16,855,000 | | | | | | 1.000%, due 09/30/16 | | $ | 16,893,193 | | | | 2.7 | |
| 31,491,000 | | | | | | 1.375%, due 09/30/18 | | | 31,126,901 | | | | 4.9 | |
| | | | | | | | | | 56,163,942 | | | | 8.9 | |
| |
| | | | | | | Total U.S. Treasury Obligations | | | | | | | | |
| | | | | | | (Cost $69,753,986) | | | 70,256,528 | | | | 11.1 | |
| |
ASSET-BACKED SECURITIES: 1.7%
|
| |
| EUR 7,553,000 | | | | | | MBNA Credit Card Master Note Trust, 5.600%, 07/17/14 | | | 10,536,137 | | | | 1.7 | |
| |
| | | | | | | Total Asset-Backed Securities | | | | | | | | |
| | | | | | | (Cost $10,583,385) | | | 10,536,137 | | | | 1.7 | |
| |
FOREIGN GOVERNMENT BONDS: 34.8%
|
| |
| 4,258,635 | | | | | | Other Securities | | | 1,619,956 | | | | 0.3 | |
| |
| |
| BRL 36,028,000 | | | | | | Brazil Notas do Tesouro Nacional Serie F, 10.000%, 01/01/15 | | | 20,407,494 | | | | 3.2 | |
| BRL 53,176,000 | | | | | | Brazil Notas do Tesouro Nacional Series F, 10.000%, 01/01/21 | | | 28,480,626 | | | | 4.5 | |
| BRL 2,474,000 | | | | | | Other Securities | | | 3,261,018 | | | | 0.5 | |
| | | | | | | | | | 52,149,138 | | | | 8.2 | |
| |
| |
| CAD 3,000,000 | | | | | | Canadian Government Bond, 1.750%, 03/01/13 | | | 3,041,114 | | | | 0.5 | |
| CAD 1,000,000 | | | | | | Canadian Government Bond, 3.000%, 12/01/15 | | | 1,065,563 | | | | 0.2 | |
| CAD 2,000,000 | | | | | | Canadian Government Bond, 3.500%, 06/01/20 | | | 2,205,247 | | | | 0.3 | |
| CAD 1,800,000 | | | | | | Canadian Government Bond, 4.000%, 06/01/41 | | | 2,167,946 | | | | 0.3 | |
| | | | | | | | | | 8,479,870 | | | | 1.3 | |
| |
| |
| 1,964,000 | | | | | | Colombia Government International Bond, 4.375%, 07/12/21 | | | 2,057,290 | | | | 0.3 | |
| |
| |
| EUR 13,110,000 | | | | | | France Government Bond OAT, 3.250%, 10/25/21 | | | 18,329,420 | | | | 2.9 | |
| |
| |
| EUR 13,015,000 | | | | | | Bundesrepublik Deutschland, 2.250%, 09/04/21 | | | 18,349,890 | | | | 2.9 | |
| EUR 20,500,000 | | | | | | Bundesschatzanweisungen, 1.750%, 06/14/13 | | | 28,915,325 | | | | 4.6 | |
| EUR 11,000 | | | | | | Other Securities | | | 16,334 | | | | 0.0 | |
| | | | | | | | | | 47,281,549 | | | | 7.5 | |
| |
See Accompanying Notes to Financial Statements
127
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
FOREIGN GOVERNMENT BONDS: (continued)
|
| |
| 2,590,000 | | | | # | | Indonesia Government International Bond, 4.875%, 05/05/21 | | $ | 2,790,725 | | | | 0.4 | |
| |
| |
| 939,000 | | | | # | | Lithuania Government International Bond, 5.125%, 09/14/17 | | | 946,043 | | | | 0.2 | |
| |
| |
| MXN 80,600,000 | | | | | | Mexican Bonos, 7.750%, 05/29/31 | | | 6,371,706 | | | | 1.0 | |
| 771,000 | | | | | | Other Securities | | | 1,121,805 | | | | 0.2 | |
| | | | | | | | | | 7,493,511 | | | | 1.2 | |
| |
| |
| 1,265,000 | | | | | | Other Securities | | | 1,509,905 | | | | 0.2 | |
| |
| |
| PEN 16,852,000 | | | | # | | Peruvian Government International Bond, 8.200%, 08/12/26 | | | 7,502,091 | | | | 1.2 | |
| 1,267,000 | | | | | | Peruvian Government International Bond, 7.350%, 07/21/25 | | | 1,659,770 | | | | 0.2 | |
| | | | | | | | | | 9,161,861 | | | | 1.4 | |
| |
| |
| 2,187,000 | | | | | | Philippine Government International Bond, 4.000%, 01/15/21 | | | 2,236,208 | | | | 0.3 | |
| 399,000 | | | | | | Other Securities | | | 474,810 | | | | 0.1 | |
| | | | | | | | | | 2,711,018 | | | | 0.4 | |
| |
| |
| 1,652,000 | | | | | | Poland Government International Bond, 5.000%–6.375%, 07/15/19–03/23/22 | | | 1,810,840 | | | | 0.3 | |
| |
| |
| 2,478,280 | | | | # | | Russia Government Bond, 7.500%, 03/31/30 | | | 2,942,957 | | | | 0.5 | |
| |
| |
| ZAR 213,638,128 | | | | | | South Africa Government Bond, 7.250%, 01/15/20 | | | 25,804,621 | | | | 4.1 | |
| 1,231,000 | | | | | | Other Securities | | | 1,375,643 | | | | 0.2 | |
| | | | | | | | | | 27,180,264 | | | | 4.3 | |
| |
| |
| 1,900,000 | | | | # | | Korea Housing Finance Corp., 3.500%, 12/15/16 | | | 1,937,892 | | | | 0.3 | |
| 500,000 | | | | # | | Korea Housing Finance Corp., 4.125%, 12/15/15 | | | 519,021 | | | | 0.1 | |
| KRW21,931,000,000 | | | | | | Korea Treasury Bond, 4.750%, 12/10/11 | | | 19,818,103 | | | | 3.1 | |
| | | | | | | | | | 22,275,016 | | | | 3.5 | |
| |
FOREIGN GOVERNMENT BONDS: (continued)
|
| |
| 2,400,000 | | | | | | Turkey Government International Bond, 5.125%–7.500%, 11/07/19–03/25/22 | | $ | 2,595,660 | | | | 0.4 | |
| |
| |
| 1,599,000 | | | | # | | Ukraine Government International Bond, 6.250%, 06/17/16 | | | 1,519,050 | | | | 0.2 | |
| |
| |
| GBP 3,600,000 | | | | | | United Kingdom Gilt, 4.250%–4.750%, 03/07/13–12/07/40 | | | 6,557,698 | | | | 1.0 | |
| |
| |
| 6,971,000 | | | | | | Other Securities | | | 1,624,801 | | | | 0.3 | |
| |
| | | | | | | Total Foreign Government Bonds | | | | | | | | |
| | | | | | | (Cost $221,681,374) | | | 221,036,572 | | | | 34.8 | |
| |
U.S. GOVERNMENT AGENCY OBLIGATIONS: 9.6%
|
| Federal Home Loan Mortgage Corporation: 5.7%## |
| 24,103,000 | | | | W | | 4.000%, due 06/15/40 | | | 25,006,862 | | | | 3.9 | |
| 5,735,000 | | | | W | | 4.500%, due 11/01/39 | | | 6,048,633 | | | | 1.0 | |
| 6,130,793 | | | | ˆ | | 5.000%, due 02/15/40 | | | 1,127,388 | | | | 0.2 | |
| 1,811,178 | | | | | | 5.000%, due 01/01/41 | | | 1,944,858 | | | | 0.3 | |
| 1,755,061 | | | | | | 5.500%, due 11/15/32 | | | 1,915,289 | | | | 0.3 | |
| | | | | | | | | | 36,043,030 | | | | 5.7 | |
| |
| Federal National Mortgage Association: 3.3%##
|
| 1,758,589 | | | | | | 5.000%, due 01/01/41 | | | 1,894,880 | | | | 0.3 | |
| 1,824,885 | | | | | | 5.000%, due 02/01/41 | | | 1,969,735 | | | | 0.3 | |
| 30,339,482 | | | | ˆ | | 4.500%–7.434%, due 05/25/18–09/01/41 | | | 17,117,267 | | | | 2.7 | |
| | | | | | | | | | 20,981,882 | | | | 3.3 | |
| |
| Government National Mortgage Association: 0.6%
|
| 3,829,042 | | | | | | 4.500%–5.500%, due 03/20/39–10/20/60 | | | 4,234,112 | | | | 0.6 | |
| |
| | | | | | | Total U.S. Government Agency Obligations | | | | | | | | |
| | | | | | | (Cost $60,500,114) | | | 61,259,024 | | | | 9.6 | |
# of
Contracts
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
PURCHASED OPTIONS: 0.3%
|
| Options on Currencies: 0.3%
|
| 11,600,000 | | | | @ | | EUR vs JPY Currency Put Option, Strike @ 102.250, Exp. 11/17/11 Counterparty: Deutsche Bank AG | | | 26,757 | | | | 0.0 | |
| 31,200,000 | | | | @ | | USD vs EUR Currency Call Option, Strike @ 1.355, Exp. 11/17/11 Counterparty: Deutsche Bank AG | | | 122,830 | | | | 0.0 | |
See Accompanying Notes to Financial Statements
128
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
# of
Contracts
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
PURCHASED OPTIONS: (continued)
|
| Options on Currencies: (continued)
|
| 61,600,000 | | | | @ | | USD vs EUR Currency Call Option, Strike @ 1.380, Exp. 01/16/12 Counterparty: Deutsche Bank AG | | $ | 1,340,049 | | | | 0.2 | |
| 18,200,000 | | | | @ | | USD vs EUR Currency Call Option, Strike @ 1.345, Exp. 12/15/11 Counterparty: Deutsche Bank AG | | | 163,878 | | | | 0.1 | |
| 30,800,000 | | | | @ | | USD vs EUR Currency Put Option, Strike @ 1.450, Exp. 12/15/11 Counterparty: Deutsche Bank AG | | | 128,916 | | | | 0.0 | |
| | | | | | | | | | 1,782,430 | | | | 0.3 | |
| |
| | | | | | | Total Purchased Options | | | | | | | | |
| | | | | | | (Cost $2,516,692) | | | 1,782,430 | | | | 0.3 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $568,928,238) | | | 574,278,565 | | | | 90.5 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 5.1% |
| |
| 5,000,000 | | | | | | CVS Caremark, 0.230%, 11/01/11 | | | 4,999,968 | | | | 0.8 | |
| 4,250,000 | | | | | | Kellogg Company, 0.220%, 11/17/11 | | | 4,249,559 | | | | 0.7 | |
| 6,000,000 | | | | | | UnitedHealthCare, 0.320%, 11/01/11 | | | 5,999,947 | | | | 0.9 | |
| 2,000,000 | | | | | | Volkswagen Group, 0.320%, 11/02/11 | | | 1,999,964 | | | | 0.3 | |
| | | | | | | | | | 17,249,438 | | | | 2.7 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
| 15,069,000 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $15,069,000) | | | 15,069,000 | | | | 2.4 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $32,318,438) | | | 32,318,438 | | | | 5.1 | |
| |
| | | | | | | Total Investments in Securities
(Cost $601,246,676) | | $ | 606,597,003 | | | | 95.6 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 28,188,571 | | | | 4.4 | |
| | | | | | | Net Assets | | $ | 634,785,574 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | 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. |
| ## | | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship and the U.S. Treasury guaranteed the debt issued by those organizations. |
| @ | | Non-income producing security |
| + | | Step-up basis bonds. Interest rates shown reflect current and next coupon rates. |
| W | | Settlement is on a when-issued or delayed-delivery basis. |
| ˆ | | Interest only securities represent the right to receive the monthly interest payments on an underlying pool of mortgage loans. Principal amount shown represents the notional amount on which current interest is calculated. Payments of principal on the pool reduce the value of the interest only security. |
| UYU | | Uruguayan Peso Uruguayo |
| | Cost for federal income tax purposes is $602,635,890. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 14,268,030 | |
| Gross Unrealized Depreciation | | | | | (10,306,917 | ) |
| Net Unrealized appreciation | | | | $ | 3,961,113 | |
Sector Diversification
| | | | Percentage of
Net Assets
|
|---|
| Collateralized Mortgage Obligations | | | | | 8.2 | % |
| Consumer Discretionary | | | | | 3.5 | |
| Consumer Staples | | | | | 1.7 | |
| Credit Card Asset-Backed Securities | | | | | 1.7 | |
| Energy | | | | | 3.2 | |
| Federal Home Loan Mortgage Corporation | | | | | 5.7 | |
| Federal National Mortgage Association | | | | | 3.3 | |
| Financials | | | | | 8.5 | |
| Foreign Government Bonds | | | | | 34.8 | |
| Government National Mortgage Association | | | | | 0.6 | |
| Health Care | | | | | 0.9 | |
| Industrials | | | | | 1.9 | |
| Information Technology | | | | | 0.6 | |
| Materials | | | | | 1.3 | |
| Options on Currencies | | | | | 0.3 | |
| Telecommunications | | | | | 2.0 | |
| U.S. Treasury Bonds | | | | | 8.4 | |
| U.S. Treasury Notes | | | | | 2.7 | |
| Utilities | | | | | 1.2 | |
| Short-Term Investments | | | | | 5.1 | |
| Assets in Excess of Other Liabilities | | | | | 4.4 | |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
129
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Purchased Options | | | | $ | — | | | $ | 1,782,430 | | | $ | — | | | $ | 1,782,430 | |
| Corporate Bonds/Notes | | | | | — | | | | 138,124,191 | | | | 19,149,143 | | | | 157,273,334 | |
| Collateralized Mortgage Obligations | | | | | — | | | | 52,134,540 | | | | — | | | | 52,134,540 | |
| Short-Term Investments | | | | | 15,069,000 | | | | 17,249,438 | | | | — | | | | 32,318,438 | |
| U.S. Treasury Obligations | | | | | 7,594,643 | | | | 62,661,885 | | | | — | | | | 70,256,528 | |
| Foreign Government Bonds | | | | | — | | | | 221,036,572 | | | | — | | | | 221,036,572 | |
| U.S. Government Agency Obligations | | | | | — | | | | 61,259,024 | | | | — | | | | 61,259,024 | |
| Asset-Backed Securities | | | | | — | | | | 10,536,137 | | | | — | | | | 10,536,137 | |
| Total Investments, at value | | | | $ | 22,663,643 | | | $ | 564,784,217 | | | $ | 19,149,143 | | | $ | 606,597,003 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Swaps | | | | | 136,251 | | | | 673,580 | | | | — | | | | 809,831 | |
| Futures | | | | | 1,255,278 | | | | — | | | | — | | | | 1,255,278 | |
| Forward Foreign Currency Contracts | | | | | — | | | | 14,830,935 | | | | — | | | | 14,830,935 | |
| Total Assets | | | | $ | 24,055,172 | | | $ | 580,288,732 | | | $ | 19,149,143 | | | $ | 623,493,047 | |
| |
Liabilities Table | | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Swaps | | | | $ | (165,634 | ) | | $ | (10,936,806 | ) | | $ | — | | | $ | (11,102,440 | ) |
| Written Options | | | | | — | | | | (1,279,663 | ) | | | — | | | | (1,279,663 | ) |
| Futures | | | | | (652,639 | ) | | | — | | | | — | | | | (652,639 | ) |
| Forward Foreign Currency Contracts | | | | | — | | | | (15,342,340 | ) | | | — | | | | (15,342,340 | ) |
| Total Liabilities | | | | $ | (818,273 | ) | | $ | (27,558,809 | ) | | $ | — | | | $ | (28,377,082 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Corporate Bonds/Notes | | | | $ | — | | | $ | 20,077,971 | | | $ | — | | | $ | (28 | ) | | $ | — | | | $ | (928,800 | ) | | $ | — | | | $ | — | | | $ | 19,149,143 | |
| Total Investments, at value | | | | $ | — | | | $ | 20,077,971 | | | $ | — | | | $ | (28 | ) | | $ | — | | | $ | (928,800 | ) | | $ | — | | | $ | — | | | $ | 19,149,143 | |
Other Financial Instruments+: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Swaps | | | | $ | 23,291 | | | $ | — | | | $ | (203,232 | ) | | $ | — | | | $ | 203,232 | | | $ | (23,291 | ) | | $ | — | | | $ | — | | | $ | — | |
| Total Assets | | | | $ | 23,291 | | | $ | 20,077,971 | | | $ | (203,232 | ) | | $ | (28 | ) | | $ | 203,232 | | | $ | (952,091 | ) | | $ | — | | | $ | — | | | $ | 19,149,143 | |
| |
Liabilities Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments+: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Swaps, at value | | | | $ | (30,636 | ) | | $ | — | | | $ | 20,155 | | | $ | — | | | $ | (20,155 | ) | | $ | 30,636 | | | $ | — | | | $ | — | | | $ | — | |
| Total Liabilities | | | | $ | (30,636 | ) | | $ | — | | | $ | 20,155 | | | $ | — | | | $ | (20,155 | ) | | $ | 30,636 | | | $ | — | | | $ | — | | | $ | — | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $(928,800).
See Accompanying Notes to Financial Statements
130
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
At October 31, 2011, the following forward foreign currency contracts were outstanding for the ING Global Bond Fund:
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| Citigroup, Inc. | | | | South African Rand | | 78,448,920 | | Buy | | 11/04/11 | | $ | 9,919,884 | | | $ | 9,879,933 | | | $ | (39,951 | ) |
| Citigroup, Inc. | | | | Norwegian Krone | | 11,674,403 | | Buy | | 11/18/11 | | | 2,113,000 | | | | 2,094,385 | | | | (18,615 | ) |
| Citigroup, Inc. | | | | Norwegian Krone | | 6,719,427 | | Buy | | 11/18/11 | | | 1,203,000 | | | | 1,205,464 | | | | 2,464 | |
| Citigroup, Inc. | | | | Mexican Peso | | 9,503,915 | | Buy | | 11/04/11 | | | 705,000 | | | | 712,851 | | | | 7,851 | |
| Citigroup, Inc. | | | | Australian Dollar | | 13,015,908 | | Buy | | 12/02/11 | | | 13,720,485 | | | | 13,663,975 | | | | (56,510 | ) |
| Citigroup, Inc. | | | | Canadian Dollar | | 17,374,411 | | Buy | | 11/04/11 | | | 16,552,261 | | | | 17,429,478 | | | | 877,217 | |
| Citigroup, Inc. | | | | Czech Koruna | | 42,341,708 | | Buy | | 12/02/11 | | | 2,376,815 | | | | 2,356,118 | | | | (20,697 | ) |
| Citigroup, Inc. | | | | EU Euro | | 1,712,626 | | Buy | | 12/02/11 | | | 2,395,365 | | | | 2,369,044 | | | | (26,321 | ) |
| Citigroup, Inc. | | | | Japanese Yen | | 6,033,511,264 | | Buy | | 11/04/11 | | | 78,575,259 | | | | 77,180,181 | | | | (1,395,078 | ) |
| Citigroup, Inc. | | | | New Zealand Dollar | | 3,356,860 | | Buy | | 11/04/11 | | | 2,547,232 | | | | 2,714,069 | | | | 166,837 | |
| Citigroup, Inc. | | | | New Zealand Dollar | | 6,671,404 | | Buy | | 12/02/11 | | | 5,407,626 | | | | 5,383,034 | | | | (24,592 | ) |
| Citigroup, Inc. | | | | Swiss Franc | | 3,223,467 | | Buy | | 11/18/11 | | | 3,603,705 | | | | 3,673,191 | | | | 69,486 | |
| Citigroup, Inc. | | | | Danish Krone | | 6,953,272 | | Buy | | 11/18/11 | | | 1,292,750 | | | | 1,292,648 | | | | (102 | ) |
| Citigroup, Inc. | | | | British Pound | | 6,069,708 | | Buy | | 11/18/11 | | | 9,592,499 | | | | 9,757,776 | | | | 165,277 | |
| Citigroup, Inc. | | | | Israeli New Shekel | | 21,506,009 | | Buy | | 11/18/11 | | | 5,869,972 | | | | 5,927,447 | | | | 57,475 | |
| Citigroup, Inc. | | | | Swedish Krona | | 83,306,501 | | Buy | | 11/18/11 | | | 12,577,000 | | | | 12,769,734 | | | | 192,734 | |
| Citigroup, Inc. | | | | Norwegian Krone | | 50,463,411 | | Buy | | 11/18/11 | | | 8,963,000 | | | | 9,053,125 | | | | 90,125 | |
| Citigroup, Inc. | | | | Australian Dollar | | 13,015,908 | | Buy | | 11/18/11 | | | 12,255,232 | | | | 13,687,427 | | | | 1,432,195 | |
| Credit Suisse First Boston | | | | Japanese Yen | | 936,302,819 | | Buy | | 11/04/11 | | | 12,366,000 | | | | 11,977,109 | | | | (388,891 | ) |
| Credit Suisse First Boston | | | | Japanese Yen | | 245,829,276 | | Buy | | 11/04/11 | | | 3,234,000 | | | | 3,144,628 | | | | (89,372 | ) |
| Credit Suisse First Boston | | | | Canadian Dollar | | 1,238,796 | | Buy | | 11/04/11 | | | 1,224,000 | | | | 1,242,722 | | | | 18,722 | |
| Credit Suisse First Boston | | | | Mexican Peso | | 105,124,593 | | Buy | | 11/04/11 | | | 7,775,000 | | | | 7,884,983 | | | | 109,983 | |
| Credit Suisse First Boston | | | | Japanese Yen | | 100,277,123 | | Buy | | 11/04/11 | | | 1,309,000 | | | | 1,282,737 | | | | (26,263 | ) |
| Credit Suisse First Boston | | | | New Zealand Dollar | | 8,365,470 | | Buy | | 11/04/11 | | | 6,280,000 | | | | 6,763,601 | | | | 483,601 | |
| Credit Suisse First Boston | | | | Japanese Yen | | 6,089,030,732 | | Buy | | 12/02/11 | | | 78,037,584 | | | | 77,930,625 | | | | (106,959 | ) |
| Credit Suisse First Boston | | | | Japanese Yen | | 196,983,530 | | Buy | | 12/02/11 | | | 2,528,000 | | | | 2,521,099 | | | | (6,901 | ) |
| Deutsche Bank AG | | | | Japanese Yen | | 165,871,712 | | Buy | | 11/04/11 | | | 2,182,000 | | | | 2,121,817 | | | | (60,183 | ) |
| Deutsche Bank AG | | | | EU Euro | | 13,125,103 | | Buy | | 11/04/11 | | | 18,196,000 | | | | 18,160,502 | | | | (35,498 | ) |
| Deutsche Bank AG | | | | Turkish Lira | | 35,078,265 | | Buy | | 11/04/11 | | | 19,057,024 | | | | 19,818,451 | | | | 761,427 | |
| Deutsche Bank AG | | | | Canadian Dollar | | 3,283,772 | | Buy | | 11/04/11 | | | 3,238,000 | | | | 3,294,180 | | | | 56,180 | |
| Deutsche Bank AG | | | | Japanese Yen | | 209,587,057 | | Buy | | 11/04/11 | | | 2,728,000 | | | | 2,681,020 | | | | (46,980 | ) |
| Deutsche Bank AG | | | | Canadian Dollar | | 454,904 | | Buy | | 11/04/11 | | | 446,000 | | | | 456,346 | | | | 10,346 | |
| Deutsche Bank AG | | | | Norwegian Krone | | 11,491,727 | | Buy | | 11/18/11 | | | 2,116,000 | | | | 2,061,613 | | | | (54,387 | ) |
| Deutsche Bank AG | | | | Norwegian Krone | | 11,608,936 | | Buy | | 11/18/11 | | | 2,154,000 | | | | 2,082,640 | | | | (71,360 | ) |
| Deutsche Bank AG | | | | Swedish Krona | | 10,912,202 | | Buy | | 11/18/11 | | | 1,726,000 | | | | 1,672,690 | | | | (53,310 | ) |
| Deutsche Bank AG | | | | Norwegian Krone | | 10,500,748 | | Buy | | 11/18/11 | | | 1,902,000 | | | | 1,883,832 | | | | (18,168 | ) |
| Deutsche Bank AG | | | | Canadian Dollar | | 12,837,178 | | Buy | | 11/04/11 | | | 12,480,000 | | | | 12,877,864 | | | | 397,864 | |
| Deutsche Bank AG | | | | Norwegian Krone | | 10,431,466 | | Buy | | 11/18/11 | | | 1,886,000 | | | | 1,871,403 | | | | (14,597 | ) |
| Deutsche Bank AG | | | | EU Euro | | 306,848 | | Buy | | 11/04/11 | | | 417,783 | | | | 424,569 | | | | 6,786 | |
| Deutsche Bank AG | | | | British Pound | | 2,022,848 | | Buy | | 11/18/11 | | | 3,236,000 | | | | 3,251,968 | | | | 15,968 | |
| Deutsche Bank AG | | | | Japanese Yen | | 84,740,503 | | Buy | | 11/04/11 | | | 1,106,000 | | | | 1,083,994 | | | | (22,006 | ) |
| Deutsche Bank AG | | | | British Pound | | 276,942 | | Buy | | 11/18/11 | | | 441,000 | | | | 445,217 | | | | 4,217 | |
| Deutsche Bank AG | | | | Japanese Yen | | 92,557,364 | | Buy | | 11/04/11 | | | 1,206,000 | | | | 1,183,986 | | | | (22,014 | ) |
| Deutsche Bank AG | | | | British Pound | | 346,553 | | Buy | | 11/18/11 | | | 547,000 | | | | 557,125 | | | | 10,125 | |
| Deutsche Bank AG | | | | Japanese Yen | | 17,345,048 | | Buy | | 11/04/11 | | | 226,000 | | | | 221,876 | | | | (4,124 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 26,288,671 | | Buy | | 11/04/11 | | | 25,210,731 | | | | 27,692,073 | | | | 2,481,342 | |
| Deutsche Bank AG | | | | Czech Koruna | | 42,341,708 | | Buy | | 11/04/11 | | | 2,264,023 | | | | 2,355,818 | | | | 91,795 | |
| Deutsche Bank AG | | | | EU Euro | | 3,335,567 | | Buy | | 11/04/11 | | | 4,411,000 | | | | 4,615,245 | | | | 204,245 | |
| Deutsche Bank AG | | | | Malaysian Ringgit | | 40,257,467 | | Buy | | 11/18/11 | | | 12,918,769 | | | | 13,107,897 | | | | 189,128 | |
| Deutsche Bank AG | | | | Polish Zloty | | 18,422,821 | | Buy | | 11/18/11 | | | 5,771,000 | | | | 5,779,820 | | | | 8,820 | |
| Deutsche Bank AG | | | | Polish Zloty | | 15,250,663 | | Buy | | 11/18/11 | | | 4,873,000 | | | | 4,784,614 | | | | (88,386 | ) |
| Deutsche Bank AG | | | | Singapore Dollar | | 15,034,202 | | Buy | | 11/18/11 | | | 12,092,496 | | | | 11,981,295 | | | | (111,201 | ) |
| Deutsche Bank AG | | | | Brazilian Real | | 31,651,204 | | Buy | | 12/16/11 | | | 16,541,000 | | | | 18,231,933 | | | | 1,690,933 | |
| HSBC | | | | Peruvian Nuevo Sol | | 16,030,336 | | Buy | | 11/18/11 | | | 5,917,000 | | | | 5,911,645 | | | | (5,355 | ) |
| HSBC | | | | Mexican Peso | | 90,649,280 | | Buy | | 12/02/11 | | | 6,826,000 | | | | 6,780,592 | | | | (45,408 | ) |
| HSBC | | | | Polish Zloty | | 38,573,976 | | Buy | | 11/18/11 | | | 12,406,000 | | | | 12,101,874 | | | | (304,126 | ) |
| HSBC | | | | Russian Ruble | | 88,119,200 | | Buy | | 11/18/11 | | | 2,840,722 | | | | 2,896,282 | | | | 55,560 | |
| HSBC | | | | Colombian Peso | | 11,225,340,000 | | Buy | | 12/16/11 | | | 6,040,000 | | | | 6,011,540 | | | | (28,460 | ) |
See Accompanying Notes to Financial Statements
131
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| HSBC | | | | Colombian Peso | | 11,535,770,800 | | Buy | | 12/16/11 | | $ | 6,101,000 | | | $ | 6,177,786 | | | $ | 76,786 | |
| HSBC | | | | Philippine Peso | | 488,281,730 | | Buy | | 11/18/11 | | | 11,149,257 | | | | 11,439,814 | | | | 290,557 | |
| HSBC | | | | Colombian Peso | | 9,570,554,473 | | Buy | | 12/16/11 | | | 5,067,003 | | | | 5,125,348 | | | | 58,345 | |
| HSBC | | | | Brazilian Real | | 11,789,506 | | Buy | | 12/16/11 | | | 6,348,000 | | | | 6,791,068 | | | | 443,068 | |
| HSBC | | | | Chinese Yuan | | 63,676,320 | | Buy | | 03/02/12 | | | 10,012,000 | | | | 10,032,603 | | | | 20,603 | |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 79,126,100 | | Buy | | 11/04/11 | | | 6,080,173 | | | | 5,934,938 | | | | (145,235 | ) |
| JPMorgan Chase & Co. | | | | Turkish Lira | | 32,291,813 | | Buy | | 11/04/11 | | | 18,481,010 | | | | 18,244,167 | | | | (236,843 | ) |
| JPMorgan Chase & Co. | | | | Japanese Yen | | 205,526,910 | | Buy | | 11/04/11 | | | 2,708,000 | | | | 2,629,083 | | | | (78,917 | ) |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 85,472,567 | | Buy | | 11/04/11 | | | 6,494,000 | | | | 6,410,962 | | | | (83,038 | ) |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 17,681,878 | | Buy | | 11/04/11 | | | 18,183,000 | | | | 18,625,812 | | | | 442,812 | |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 844,002 | | Buy | | 11/04/11 | | | 869,000 | | | | 889,059 | | | | 20,059 | |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 1,037,847 | | Buy | | 11/04/11 | | | 1,059,000 | | | | 1,093,251 | | | | 34,251 | |
| JPMorgan Chase & Co. | | | | Canadian Dollar | | 1,261,858 | | Buy | | 11/04/11 | | | 1,239,000 | | | | 1,265,858 | | | | 26,858 | |
| JPMorgan Chase & Co. | | | | British Pound | | 5,929,982 | | Buy | | 11/18/11 | | | 9,556,000 | | | | 9,533,151 | | | | (22,849 | ) |
| JPMorgan Chase & Co. | | | | Japanese Yen | | 253,752,919 | | Buy | | 11/04/11 | | | 3,283,000 | | | | 3,245,987 | | | | (37,013 | ) |
| JPMorgan Chase & Co. | | | | British Pound | | 3,910,609 | | Buy | | 11/18/11 | | | 6,304,000 | | | | 6,286,769 | | | | (17,231 | ) |
| JPMorgan Chase & Co. | | | | Canadian Dollar | | 1,998,630 | | Buy | | 11/04/11 | | | 1,968,000 | | | | 2,004,964 | | | | 36,964 | |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 49,403,564 | | Buy | | 11/04/11 | | | 3,730,274 | | | | 3,705,567 | | | | (24,707 | ) |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 103,532,820 | | Buy | | 11/04/11 | | | 7,736,605 | | | | 7,765,591 | | | | 28,986 | |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 66,314,145 | | Buy | | 11/04/11 | | | 4,973,833 | | | | 4,973,963 | | | | 130 | |
| JPMorgan Chase & Co. | | | | Canadian Dollar | | 2,008,258 | | Buy | | 11/04/11 | | | 1,932,000 | | | | 2,014,623 | | | | 82,623 | |
| JPMorgan Chase & Co. | | | | Canadian Dollar | | 7,758,641 | | Buy | | 12/02/11 | | | 7,783,556 | | | | 7,778,237 | | | | (5,319 | ) |
| JPMorgan Chase & Co. | | | | Canadian Dollar | | 3,266,511 | | Buy | | 12/02/11 | | | 3,281,000 | | | | 3,274,761 | | | | (6,239 | ) |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 93,570,900 | | Buy | | 11/18/11 | | | 6,698,326 | | | | 7,008,703 | | | | 310,377 | |
| JPMorgan Chase & Co. | | | | Singapore Dollar | | 8,487,212 | | Buy | | 12/16/11 | | | 6,562,000 | | | | 6,763,829 | | | | 201,829 | |
| Morgan Stanley | | | | Canadian Dollar | | 6,374,485 | | Buy | | 11/04/11 | | | 6,288,000 | | | | 6,394,688 | | | | 106,688 | |
| Morgan Stanley | | | | Indian Rupee | | 1,415,934,710 | | Buy | | 11/18/11 | | | 28,799,648 | | | | 28,982,303 | | | | 182,655 | |
| Morgan Stanley | | | | South Korean Won | | 7,345,683,000 | | Buy | | 11/18/11 | | | 6,273,000 | | | | 6,619,526 | | | | 346,526 | |
| Morgan Stanley | | | | Indonesian Rupiah | | 43,590,040,000 | | Buy | | 12/16/11 | | | 4,931,000 | | | | 4,899,303 | | | | (31,697 | ) |
| Morgan Stanley | | | | South Korean Won | | 7,410,352,500 | | Buy | | 11/18/11 | | | 6,354,000 | | | | 6,677,802 | | | | 323,802 | |
| Morgan Stanley | | | | South Korean Won | | 3,232,320,000 | | Buy | | 11/18/11 | | | 2,730,000 | | | | 2,912,789 | | | | 182,789 | |
| Morgan Stanley | | | | Singapore Dollar | | 7,505,208 | | Buy | | 12/16/11 | | | 5,918,000 | | | | 5,981,227 | | | | 63,227 | |
| Morgan Stanley | | | | South Korean Won | | 6,857,064,000 | | Buy | | 11/18/11 | | | 5,816,000 | | | | 6,179,209 | | | | 363,209 | |
| Morgan Stanley | | | | South Korean Won | | 3,391,584,000 | | Buy | | 11/18/11 | | | 2,884,000 | | | | 3,056,309 | | | | 172,309 | |
| Morgan Stanley | | | | South Korean Won | | 3,205,306,000 | | Buy | | 11/18/11 | | | 2,795,000 | | | | 2,888,445 | | | | 93,445 | |
| Morgan Stanley | | | | Indonesian Rupiah | | 60,163,709,200 | | Buy | | 12/16/11 | | | 6,775,956 | | | | 6,762,101 | | | | (13,855 | ) |
| Morgan Stanley | | | | South Korean Won | | 4,161,878,000 | | Buy | | 11/18/11 | | | 3,763,000 | | | | 3,750,456 | | | | (12,544 | ) |
| UBS Warburg LLC | | | | Canadian Dollar | | 2,716,380 | | Buy | | 11/04/11 | | | 2,735,000 | | | | 2,724,989 | | | | (10,011 | ) |
| UBS Warburg LLC | | | | Canadian Dollar | | 6,497,600 | | Buy | | 11/04/11 | | | 6,541,000 | | | | 6,518,194 | | | | (22,806 | ) |
| UBS Warburg LLC | | | | New Zealand Dollar | | 2,859,706 | | Buy | | 11/04/11 | | | 2,273,000 | | | | 2,312,113 | | | | 39,113 | |
| UBS Warburg LLC | | | | New Zealand Dollar | | 1,469,284 | | Buy | | 11/04/11 | | | 1,171,000 | | | | 1,187,937 | | | | 16,937 | |
| UBS Warburg LLC | | | | New Zealand Dollar | | 1,454,670 | | Buy | | 11/04/11 | | | 1,120,000 | | | | 1,176,121 | | | | 56,121 | |
| | | | | | | | | | | | | | | | | | | | | $ | 9,745,653 | |
| Citigroup, Inc. | | | | New Zealand Dollar | | 2,268,198 | | Sell | | 11/04/11 | | $ | 1,862,000 | | | $ | 1,833,870 | | | $ | 28,130 | |
| Citigroup, Inc. | | | | Australian Dollar | | 13,015,908 | | Sell | | 11/18/11 | | | 13,743,862 | | | | 13,687,428 | | | | 56,434 | |
| Citigroup, Inc. | | | | EU Euro | | 4,923,358 | | Sell | | 11/04/11 | | | 6,555,382 | | | | 6,812,186 | | | | (256,804 | ) |
| Citigroup, Inc. | | | | Taiwan New Dollar | | 310,515,064 | | Sell | | 12/16/11 | | | 10,322,974 | | | | 10,389,151 | | | | (66,177 | ) |
| Credit Suisse First Boston | | | | Japanese Yen | | 274,074,052 | | Sell | | 11/04/11 | | | 3,598,000 | | | | 3,505,933 | | | | 92,067 | |
| Credit Suisse First Boston | | | | Mexican Peso | | 66,209,243 | | Sell | | 11/04/11 | | | 4,936,000 | | | | 4,966,096 | | | | (30,096 | ) |
| Credit Suisse First Boston | | | | British Pound | | 7,684,193 | | Sell | | 11/18/11 | | | 12,223,000 | | | | 12,353,254 | | | | (130,254 | ) |
| Deutsche Bank AG | | | | New Zealand Dollar | | 8,566,388 | | Sell | | 11/04/11 | | | 6,453,000 | | | | 6,926,046 | | | | (473,046 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 2,101,069 | | Sell | | 11/04/11 | | | 2,254,000 | | | | 2,213,233 | | | | 40,767 | |
| Deutsche Bank AG | | | | Australian Dollar | | 1,769,122 | | Sell | | 11/04/11 | | | 1,836,000 | | | | 1,863,565 | | | | (27,565 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 11,722,969 | | Sell | | 11/04/11 | | | 12,223,000 | | | | 12,348,790 | | | | (125,790 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 1,745,211 | | Sell | | 11/04/11 | | | 1,820,000 | | | | 1,838,378 | | | | (18,378 | ) |
| Deutsche Bank AG | | | | Canadian Dollar | | 2,736,459 | | Sell | | 11/04/11 | | | 2,722,000 | | | | 2,745,132 | | | | (23,132 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 1,792,464 | | Sell | | 11/04/11 | | | 1,876,000 | | | | 1,888,153 | | | | (12,153 | ) |
| Deutsche Bank AG | | | | EU Euro | | 855,202 | | Sell | | 11/04/11 | | | 1,178,000 | | | | 1,183,297 | | | | (5,297 | ) |
| Deutsche Bank AG | | | | Japanese Yen | | 128,957,106 | | Sell | | 11/04/11 | | | 1,679,000 | | | | 1,649,609 | | | | 29,391 | |
| Deutsche Bank AG | | | | Japanese Yen | | 141,884,139 | | Sell | | 11/04/11 | | | 1,847,000 | | | | 1,814,970 | | | | 32,030 | |
| Deutsche Bank AG | | | | Australian Dollar | | 14,605,911 | | Sell | | 11/04/11 | | | 14,883,000 | | | | 15,385,637 | | | | (502,637 | ) |
| Deutsche Bank AG | | | | British Pound | | 2,671,352 | | Sell | | 11/18/11 | | | 4,310,000 | | | | 4,294,516 | | | | 15,484 | |
| Deutsche Bank AG | | | | Japanese Yen | | 1,397,093,829 | | Sell | | 11/04/11 | | | 18,097,000 | | | | 17,871,510 | | | | 225,490 | |
See Accompanying Notes to Financial Statements
132
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| Deutsche Bank AG | | | | Japanese Yen | | 314,262,138 | | Sell | | 11/04/11 | | $ | 4,088,000 | | | $ | 4,020,015 | | | $ | 67,985 | |
| Deutsche Bank AG | | | | EU Euro | | 5,096,958 | | Sell | | 11/04/11 | | | 7,024,000 | | | | 7,052,387 | | | | (28,387 | ) |
| Deutsche Bank AG | | | | British Pound | | 1,727,250 | | Sell | | 11/18/11 | | | 2,753,000 | | | | 2,776,760 | | | | (23,760 | ) |
| Deutsche Bank AG | | | | EU Euro | | 4,179,374 | | Sell | | 11/04/11 | | | 5,694,000 | | | | 5,782,776 | | | | (88,776 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 1,338,171 | | Sell | | 11/04/11 | | | 1,334,000 | | | | 1,409,608 | | | | (75,608 | ) |
| Deutsche Bank AG | | | | Turkish Lira | | 52,801,200 | | Sell | | 11/04/11 | | | 28,694,745 | | | | 29,831,522 | | | | (1,136,777 | ) |
| Deutsche Bank AG | | | | Australian Dollar | | 1,153,379 | | Sell | | 11/04/11 | | | 1,122,000 | | | | 1,214,951 | | | | (92,951 | ) |
| Deutsche Bank AG | | | | British Pound | | 1,833,514 | | Sell | | 11/18/11 | | | 2,894,000 | | | | 2,947,592 | | | | (53,592 | ) |
| Deutsche Bank AG | | | | Norwegian Krone | | 6,862,668 | | Sell | | 11/18/11 | | | 1,222,000 | | | | 1,231,161 | | | | (9,161 | ) |
| Deutsche Bank AG | | | | Canadian Dollar | | 3,768,183 | | Sell | | 11/04/11 | | | 3,545,000 | | | | 3,780,125 | | | | (235,125 | ) |
| Deutsche Bank AG | | | | British Pound | | 1,097,995 | | Sell | | 11/18/11 | | | 1,730,000 | | | | 1,765,158 | | | | (35,158 | ) |
| Deutsche Bank AG | | | | Norwegian Krone | | 44,130,756 | | Sell | | 11/18/11 | | | 7,879,388 | | | | 7,917,048 | | | | (37,660 | ) |
| Deutsche Bank AG | | | | Swedish Krona | | 7,090,182 | | Sell | | 11/18/11 | | | 1,065,000 | | | | 1,086,827 | | | | (21,827 | ) |
| Deutsche Bank AG | | | | Colombian Peso | | 19,548,160,000 | | Sell | | 12/16/11 | | | 10,240,000 | | | | 10,468,685 | | | | (228,685 | ) |
| Deutsche Bank AG | | | | Philippine Peso | | 488,281,730 | | Sell | | 11/18/11 | | | 11,147,985 | | | | 11,439,814 | | | | (291,829 | ) |
| Deutsche Bank AG | | | | Indonesian Rupiah | | 6,371,590,260 | | Sell | | 12/16/11 | | | 715,909 | | | | 716,135 | | | | (226 | ) |
| Deutsche Bank AG | | | | Singapore Dollar | | 8,263,846 | | Sell | | 12/16/11 | | | 6,280,000 | | | | 6,585,819 | | | | (305,819 | ) |
| Deutsche Bank AG | | | | Singapore Dollar | | 10,101,474 | | Sell | | 12/16/11 | | | 7,992,235 | | | | 8,050,304 | | | | (58,069 | ) |
| HSBC | | | | South African Rand | | 79,680,632 | | Sell | | 11/04/11 | | | 10,026,000 | | | | 10,035,056 | | | | (9,056 | ) |
| HSBC | | | | Peruvian Nuevo Sol | | 16,171,764 | | Sell | | 11/18/11 | | | 5,926,328 | | | | 5,963,800 | | | | (37,472 | ) |
| HSBC | | | | Brazilian Real | | 17,170,417 | | Sell | | 12/16/11 | | | 9,977,000 | | | | 9,890,616 | | | | 86,384 | |
| HSBC | | | | South Korean Won | | 3,322,705,000 | | Sell | | 11/18/11 | | | 2,846,000 | | | | 2,994,239 | | | | (148,239 | ) |
| HSBC | | | | South Korean Won | | 4,367,870,460 | | Sell | | 11/18/11 | | | 3,791,061 | | | | 3,936,085 | | | | (145,024 | ) |
| HSBC | | | | Polish Zloty | | 19,299,733 | | Sell | | 11/18/11 | | | 5,977,000 | | | | 6,054,935 | | | | (77,935 | ) |
| HSBC | | | | Colombian Peso | | 26,398,542,437 | | Sell | | 12/16/11 | | | 13,888,853 | | | | 14,137,291 | | | | (248,438 | ) |
| HSBC | | | | Brazilian Real | | 27,544,671 | | Sell | | 12/16/11 | | | 15,270,357 | | | | 15,866,461 | | | | (596,104 | ) |
| HSBC | | | | Brazilian Real | | 61,962,971 | | Sell | | 12/16/11 | | | 35,566,955 | | | | 35,692,315 | | | | (125,360 | ) |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 79,126,100 | | Sell | | 11/03/11 | | | 6,080,683 | | | | 5,935,523 | | | | 145,160 | |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 1,902,935 | | Sell | | 11/04/11 | | | 2,038,000 | | | | 2,004,522 | | | | 33,478 | |
| JPMorgan Chase & Co. | | | | Canadian Dollar | | 18,749,937 | | Sell | | 11/04/11 | | | 18,433,000 | | | | 18,809,363 | | | | (376,363 | ) |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 84,736,791 | | Sell | | 11/04/11 | | | 6,233,301 | | | | 6,355,774 | | | | (122,473 | ) |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 16,066,411 | | Sell | | 11/04/11 | | | 16,296,000 | | | | 16,924,104 | | | | (628,104 | ) |
| JPMorgan Chase & Co. | | | | Turkish Lira | | 15,846,840 | | Sell | | 11/04/11 | | | 8,614,496 | | | | 8,953,117 | | | | (338,621 | ) |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 12,860,778 | | Sell | | 11/04/11 | | | 12,600,000 | | | | 13,547,341 | | | | (947,341 | ) |
| JPMorgan Chase & Co. | | | | Mexican Peso | | 100,561,526 | | Sell | | 11/04/11 | | | 7,452,189 | | | | 7,542,726 | | | | (90,537 | ) |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 1,901,164 | | Sell | | 11/04/11 | | | 1,829,000 | | | | 2,002,657 | | | | (173,657 | ) |
| JPMorgan Chase & Co. | | | | British Pound | | 1,712,312 | | Sell | | 11/18/11 | | | 2,686,000 | | | | 2,752,746 | | | | (66,746 | ) |
| JPMorgan Chase & Co. | | | | Turkish Lira | | 1,277,963 | | Sell | | 12/02/11 | | | 723,388 | | | | 717,481 | | | | 5,907 | |
| JPMorgan Chase & Co. | | | | Australian Dollar | | 1,394,937 | | Sell | | 12/02/11 | | | 1,473,000 | | | | 1,464,391 | | | | 8,609 | |
| JPMorgan Chase & Co. | | | | Swedish Krona | | 68,545,844 | | Sell | | 11/18/11 | | | 10,392,505 | | | | 10,507,130 | | | | (114,625 | ) |
| JPMorgan Chase & Co. | | | | British Pound | | 3,540,241 | | Sell | | 11/18/11 | | | 5,580,000 | | | | 5,691,358 | | | | (111,358 | ) |
| JPMorgan Chase & Co. | | | | Hungarian Forint | | 1,722,319,670 | | Sell | | 11/18/11 | | | 7,753,185 | | | | 7,795,765 | | | | (42,580 | ) |
| JPMorgan Chase & Co. | | | | Polish Zloty | | 19,189,889 | | Sell | | 11/18/11 | | | 6,088,665 | | | | 6,020,474 | | | | 68,191 | |
| Morgan Stanley | | | | Canadian Dollar | | 11,115,532 | | Sell | | 11/04/11 | | | 10,946,000 | | | | 11,150,761 | | | | (204,761 | ) |
| Morgan Stanley | | | | Canadian Dollar | | 5,419,921 | | Sell | | 11/04/11 | | | 5,254,000 | | | | 5,437,099 | | | | (183,099 | ) |
| Morgan Stanley | | | | Australian Dollar | | 1,709,871 | | Sell | | 11/04/11 | | | 1,662,000 | | | | 1,801,151 | | | | (139,151 | ) |
| Morgan Stanley | | | | South African Rand | | 187,910,982 | | Sell | | 11/04/11 | | | 23,036,708 | | | | 23,665,690 | | | | (628,982 | ) |
| Morgan Stanley | | | | Australian Dollar | | 30,567,582 | | Sell | | 12/02/11 | | | 32,225,720 | | | | 32,089,552 | | | | 136,168 | |
| Morgan Stanley | | | | South Korean Won | | 5,488,749,000 | | Sell | | 11/18/11 | | | 4,746,000 | | | | 4,946,159 | | | | (200,159 | ) |
| Morgan Stanley | | | | South Korean Won | | 2,874,435,600 | | Sell | | 11/18/11 | | | 2,388,000 | | | | 2,590,283 | | | | (202,283 | ) |
| Morgan Stanley | | | | New Zealand Dollar | | 8,329,774 | | Sell | | 11/18/11 | | | 6,265,506 | | | | 6,727,941 | | | | (462,435 | ) |
| Morgan Stanley | | | | South Korean Won | | 17,112,066,550 | | Sell | | 11/18/11 | | | 14,946,342 | | | | 15,420,454 | | | | (474,112 | ) |
| Morgan Stanley | | | | South Korean Won | | 3,351,810,000 | | Sell | | 11/18/11 | | | 2,902,000 | | | | 3,020,467 | | | | (118,467 | ) |
| UBS Warburg LLC | | | | Australian Dollar | | 5,750,525 | | Sell | | 11/04/11 | | | 6,137,000 | | | | 6,057,512 | | | | 79,488 | |
| | | | | | | | | | | | | | | | | | | | | $ | (10,257,058 | ) |
See Accompanying Notes to Financial Statements
133
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
ING Global Bond Fund Open Futures Contracts on October 31, 2011:
Contract Description
| | | | Number
of Contracts
| | Expiration Date
| | Notional Value
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
Long Contracts | | | | | | | | | | | | | | | | | | |
| 30-year German Government Bond | | | | | 19 | | | | 12/08/11 | | | $ | 3,165,878 | | | $ | (50,069 | ) |
| Australia 10-Year Bond | | | | | 40 | | | | 12/15/11 | | | | 4,705,912 | | | | (150,573 | ) |
| Australia 3-Year Bond | | | | | 39 | | | | 12/15/11 | | | | 4,352,345 | | | | (28,402 | ) |
| Canada 10-Year Bond | | | | | 28 | | | | 12/19/11 | | | | 3,688,668 | | | | 36,903 | |
| Euro-Bund | | | | | 331 | | | | 12/08/11 | | | | 62,045,897 | | | | 273,219 | |
| Euro-Schatz | | | | | 258 | | | | 12/08/11 | | | | 39,160,523 | | | | 108,031 | |
| Long Gilt | | | | | 267 | | | | 12/28/11 | | | | 55,097,487 | | | | 415,902 | |
| Short Gilt | | | | | 42 | | | | 12/28/11 | | | | 7,112,440 | | | | 29,639 | |
| U.S. Treasury 5-Year Note | | | | | 704 | | | | 12/30/11 | | | | 86,317,004 | | | | 115,845 | |
| U.S. Treasury Long Bond | | | | | 85 | | | | 12/20/11 | | | | 11,817,656 | | | | 254,123 | |
| | | | | | | | | | | | | $ | 277,463,810 | | | $ | 1,004,618 | |
Short Contracts | | | | | | | | | | | | | | | | | | |
| Euro-Bobl 5-Year | | | | | 42 | | | | 12/08/11 | | | $ | 7,109,838 | | | $ | 21,351 | |
| Medium Gilt | | | | | 168 | | | | 12/28/11 | | | | 30,175,872 | | | | (314,350 | ) |
| U.S. Treasury 10-Year Note | | | | | 310 | | | | 12/20/11 | | | | 40,009,375 | | | | (42,588 | ) |
| U.S. Treasury 2-Year Note | | | | | 131 | | | | 12/30/11 | | | | 28,856,845 | | | | 265 | |
| U.S. Treasury Ultra Long Bond | | | | | 13 | | | | 12/20/11 | | | | 1,980,875 | | | | (66,657 | ) |
| | | | | | | | | | | | | $ | 108,132,805 | | | $ | (401,979 | ) |
ING Global Bond Fund Interest Rate Swap Agreements Outstanding on October 31, 2011:
| | | | Termination
Date
| | Notional
Amount
| | Fair
Value
| | Upfront
Payments
Paid/ (Received)
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| Receive a floating rate based on the CLP-CLUFUF and pay a floating rate based on the 6-month CLP-CHIBNOM Counterparty: Deutsche Bank AG | | | | 08/03/13 | | CLP 17,246,118,000 | | $136,251 | | $ | — | | | $ | 136,251 | |
| |
| Receive a floating rate based on the 6-month CLP-CHIBNOM and pay a fixed rate equal to 4.990% Counterparty: Deutsche Bank AG | | | | 08/03/13 | | CLP 17,246,118,000 | | (165,634 | ) | | — | | | | (165,634 | ) |
| |
| Receive a floating rate based on the 6-month EUR-EURIBOR-Reuters and pay a fixed rate equal to 2.670% Counterparty: Morgan Stanley | | | | 10/31/21 | | EUR 26,200,000 | | (298,278 | ) | | — | | | | (298,278 | ) |
| |
| Receive a fixed rate equal to 2.890% and pay a floating rate based on the 3-month ILS-TELBOR Counterparty: Morgan Stanley | | | | 09/10/13 | | ILS 49,000,000 | | 21,875 | | | — | | | | 21,875 | |
| |
| Receive a fixed rate equal to 3.470% and pay a floating rate based on the 3-month ILS-TELBOR Counterparty: Morgan Stanley | | | | 09/08/16 | | ILS 41,000,000 | | (14,734 | ) | | — | | | | (14,734 | ) |
| |
| Receive a fixed rate equal to 4.390% and pay a floating rate based on the 3-month ILS-TELBOR Counterparty: Morgan Stanley | | | | 09/09/21 | | ILS 11,000,000 | | (14,403 | ) | | — | | | | (14,403 | ) |
| |
| Receive a floating rate based on the 3-month South Korean Won and pay fixed rate equal to 3.470% Counterparty: Bank of America | | | | 10/05/16 | | KRW 17,000,000,000 | | 47,807 | | | — | | | | 47,807 | |
| |
| Receive a floating rate based on the 3-month KRW-CD and pay a fixed rate equal to 3.830% Counterparty: Merrill Lynch | | | | 06/24/13 | | KRW 14,200,000,000 | | (64,711 | ) | | — | | | | (64,711 | ) |
| |
| Receive a floating rate based on the 3-month KRW-CD and pay a fixed rate equal to 3.775% Counterparty: Merrill Lynch | | | | 06/24/13 | | KRW 28,480,800,000 | | (107,243 | ) | | — | | | | (107,243 | ) |
| |
| Receive a fixed rate equal to 4.830% and pay a floating rate based on the 28-day MXN-TIIE-BANXICO Counterparty: Citigroup, Inc. | | | | 08/09/13 | | MXN 165,116,773 | | 19,979 | | | — | | | | 19,979 | |
See Accompanying Notes to Financial Statements
134
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
| | | | Termination
Date
| | Notional
Amount
| | Fair
Value
| | Upfront
Payments
Paid/ (Received)
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
| |
| Receive a floating rate based on the 28-day MXN-TIIE-BANXICO and pay a fixed rate equal to 5.580% Counterparty: Citigroup, Inc. | | | | 08/05/16 | | MXN 144,477,176 | | $(68,433 | ) | $ | — | | | $ | (68,433 | ) |
| |
| Receive a fixed rate equal to 6.480% and pay a floating rate based on the 28-day MXN-TIIE-BANXICO Counterparty: Deutsche Bank AG | | | | 07/30/21 | | MXN 41,279,193 | | 14,889 | | | — | | | | 14,889 | |
| |
| Receive a floating rate based on the 28-day MXN-TIIE-BANXICO and pay a fixed rate equal to 5.290% Counterparty: Morgan Stanley | | | | 09/02/16 | | MXN 143,000,000 | | 80,904 | | | — | | | | 80,904 | |
| |
| Receive a fixed rate equal to 6.270% and pay a floating rate based on the 28-day MXN-TIIE-BANXICO Counterparty: Morgan Stanley | | | | 08/27/21 | | MXN 82,000,000 | | (79,540 | ) | | — | | | | (79,540 | ) |
| |
| Receive a floating rate based on the 6-month PLN-WIBOR-WIBO and pay fixed rate equal to 4.775% Counterparty: Morgan Stanley | | | | 11/03/16 | | PLN 40,500,000 | | 14,718 | | | — | | | | 14,718 | |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 2.535% Counterparty: Citigroup, Inc. | | | | 02/10/16 | | USD 35,000,000 | | (2,135,850 | ) | | — | | | | (2,135,850 | ) |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 3.478% Counterparty: Citigroup, Inc. | | | | 05/11/20 | | USD 10,271,000 | | (1,110,883 | ) | | — | | | | (1,110,883 | ) |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 0.750% Counterparty: Credit Suisse First Boston | | | | 09/19/14 | | USD 60,800,000 | | 28,573 | | | — | | | | 28,573 | |
| |
| Receive a fixed rate equal to 1.719% and pay a floating rate based on the 3-month USD-LIBOR-BBA Counterparty: Credit Suisse First Boston | | | | 09/19/17 | | USD 40,500,000 | | (72,096) | ) | | — | | | | (72,096 | ) |
| |
| Receive a fixed rate equal to 1.721% and pay a floating rate based on the 3-month USD-LIBOR-BBA Counterparty: Credit Suisse First Boston | | | | 09/19/17 | | USD 11,200,000 | | (18,619 | ) | | — | | | | (18,619 | ) |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 2.870% Counterparty: Credit Suisse First Boston | | | | 12/24/17 | | USD 25,000,000 | | (1,829,672 | ) | | — | | | | (1,829,672 | ) |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 3.444% Counterparty: Credit Suisse First Boston | | | | 12/24/20 | | USD 45,000,000 | | (4,692,535 | ) | | — | | | | (4,692,535 | ) |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 2.598% Counterparty: Credit Suisse First Boston | | | | 09/19/22 | | USD 4,400,000 | | 5,921 | | | — | | | | 5,921 | |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 2.585% Counterparty: Credit Suisse First Boston | | | | 09/19/22 | | USD 12,400,000 | | 30,558 | | | — | | | | 30,558 | |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 0.710% Counterparty: JPMorgan Chase & Co. | | | | 09/23/14 | | USD 57,000,000 | | 77,117 | | | — | | | | 77,117 | |
| |
| Receive a fixed rate equal to 1.593% and pay a floating rate based on the 3-month USD-LIBOR-BBA Counterparty: JPMorgan Chase & Co. | | | | 09/23/17 | | USD 52,300,000 | | (429,809 | ) | | — | | | | (429,809 | ) |
| |
| Receive a floating rate based on the 3-month USD-LIBOR-BBA and pay a fixed rate equal to 2.399% Counterparty: JPMorgan Chase & Co. | | | | 09/23/22 | | USD 17,000,000 | | 331,239 | | | — | | | | 331,239 | |
| | | | | | | | | $(10,292,609) | | $ | — | | | $ | (10,292,609 | ) |
See Accompanying Notes to Financial Statements
135
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL BOND FUND
ING Global Bond Fund Written OTC Options on October 31, 2011
# of Contracts
| | | | Counterparty
| | Description
| | Exercise
Price
| | Expiration
Date
| | Premiums
Received
| | Fair Value
|
|---|
Options On Currencies |
| 11,600,000 | | | | Deutsche Bank AG | | EUR vs JPY Currency Call Option | | 106.000 EUR | | | 11/17/11 | | | $ | 284,546 | | | $ | (473,642 | ) |
| 18,200,000 | | | | Deutsche Bank AG | | USD vs EUR Currency Put Option | | 1.425 USD | | | 12/15/11 | | | | 202,179 | | | | (161,658 | ) |
| 61,600,000 | | | | Deutsche Bank AG | | USD vs EUR Currency Put Option | | 1.440 USD | | | 01/16/12 | | | | 1,017,897 | | | | (622,648 | ) |
| 30,800,000 | | | | Deutsche Bank AG | | USD vs EUR Currency Put Option | | 1.500 USD | | | 12/15/11 | | | | 46,200 | | | | (21,715 | ) |
| | | | | | | | | Total Written OTC Options | | $ | 1,550,822 | | | $ | (1,279,663 | ) |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2011 was as follows:
Derivatives not accounted for as
hedging instruments
| | | | Location on Statement
of Assets and Liabilities
| | Fair Value
|
|---|
Asset Derivatives
| | | | | | | | | | |
| Foreign exchange contracts | | | | Investments in securities at value* | | $ | 1,782,430 | |
| Foreign exchange contracts | | | | Unrealized appreciation on forward foreign currency contracts | | | 14,830,935 | |
| Interest rate contracts | | | | Unrealized appreciation on swap agreements | | | 809,831 | |
| Interest rate contracts | | | | Net Assets — Unrealized appreciation** | | | 1,255,278 | |
Total Asset Derivatives | | | | | | $ | 18,678,474 | |
Liability Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized depreciation on forward foreign currency contracts | | $ | 15,342,340 | |
| Interest rate contracts | | | | Unrealized depreciation on swap agreements | | | 11,102,440 | |
| Interest rate contracts | | | | Net Assets — Unrealized depreciation** | | | 652,639 | |
| Foreign exchange contracts | | | | Written options, at fair value | | | 1,279,663 | |
Total Liability Derivatives | | | | | | $ | 28,377,082 | |
| * | | Includes purchased options. |
| ** | | Includes cumulative appreciation/depreciation of futures contracts as reported in the table following the Summary Portfolio of Investments. |
— | | The effect of derivative instruments on the Fund’s Statement of Operations for the period ended October 31, 2011 was as follows:
| | | | Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
| |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Investments*
| | Foreign currency
related transactions**
| | Futures
| | Swaps
| | Written options
| | Total
|
|---|
| Credit contracts | | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,185,796 | ) | | $ | — | | | $ | (1,185,796 | ) |
| Foreign exchange contracts | | | | | (11,570,660 | ) | | | (4,669,986 | ) | | | — | | | | — | | | | 10,710,630 | | | | (5,530,016 | ) |
| Interest rate contracts | | | | | — | | | | — | | | | 9,127,509 | | | | (2,000,150 | ) | | | 175,543 | | | | 7,302,902 | |
Total | | | | $ | (11,570,660 | ) | | $ | (4,669,986 | ) | | $ | 9,127,509 | | | $ | (3,185,946 | ) | | $ | 10,886,173 | | | $ | 587,090 | |
| | | | Change in Unrealized Appreciation or (Depreciation)
on Derivatives Recognized in Income
| |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Investments*
| | Foreign currency
related transactions**
| | Futures
| | Swaps
| | Written options
| | Total
|
|---|
| Credit contracts | | | | $ | — | | | $ | — | | | $ | — | | | $ | 65,466 | | | $ | — | | | $ | 65,466 | |
| Foreign exchange contracts | | | | | (296,272 | ) | | | (1,837,894 | ) | | | — | | | | — | | | | (91,902 | ) | | | (2,226,068 | ) |
| Interest rate contracts | | | | | — | | | | — | | | | 836,256 | | | | (10,155,088 | ) | | | — | | | | (9,318,832 | ) |
Total | | | | $ | (296,272 | ) | | $ | (1,837,894 | ) | | $ | 836,256 | | | $ | (10,089,622 | ) | | $ | (91,902 | ) | | $ | (11,479,434 | ) |
| * | | Amounts recognized for purchased options are included in net realized gain (loss) on investments and net change in unrealized appreciation or depreciation on investments. |
| ** | | Amounts recognized for forward foreign currency contracts are included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign currency related transactions. |
See Accompanying Notes to Financial Statements
136
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GLOBAL EQUITY DIVIDEND FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 96.8%
|
| |
| 232,393 | | | | | | Other Securities | | $ | 1,001,653 | | | | 1.2 | |
| |
| |
| 23,213 | | | | | | Other Securities | | | 587,057 | | | | 0.7 | |
| |
| |
| 53,615 | | | | | | Other Securities | | | 2,005,438 | | | | 2.5 | |
| |
| |
| 10,190 | | | | | | Other Securities | | | 297,190 | | | | 0.4 | |
| |
| |
| 29,245 | | | | | | Gaz de France | | | 823,911 | | | | 1.0 | |
| 12,023 | | | | | | Sanofi-Aventis | | | 860,114 | | | | 1.1 | |
| 17,395 | | | | | | Vinci S.A. | | | 853,022 | | | | 1.1 | |
| 73,230 | | | | | | Other Securities | | | 2,409,028 | | | | 3.0 | |
| | | | | | | | | | 4,946,075 | | | | 6.2 | |
| |
| |
| 59,796 | | | | | | Deutsche Post AG | | | 907,016 | | | | 1.1 | |
| 85,206 | | | | | | Other Securities | | | 3,094,334 | | | | 3.9 | |
| | | | | | | | | | 4,001,350 | | | | 5.0 | |
| |
| |
| 16,614 | | | | | | China Mobile Ltd. ADR | | | 790,162 | | | | 1.0 | |
| |
| |
| 42,424 | | | | | | CRH PLC | | | 767,561 | | �� | | 1.0 | |
| |
| |
| 262,360 | | | | | | Other Securities | | | 756,399 | | | | 0.9 | |
| |
| |
| 42,800 | | | | | | Daiichi Sankyo Co., Ltd. | | | 831,374 | | | | 1.0 | |
| 185,500 | | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 806,171 | | | | 1.0 | |
| 59,400 | | | | | | Mitsui & Co., Ltd. | | | 866,915 | | | | 1.1 | |
| 29,900 | | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 835,751 | | | | 1.1 | |
| 189,809 | | | | | | Other Securities | | | 3,361,657 | | | | 4.2 | |
| | | | | | | | | | 6,701,868 | | | | 8.4 | |
| |
| |
| 36,959 | | | | | | Other Securities | | | 766,272 | | | | 1.0 | |
| |
| |
| 16,880 | | | | | | Akzo Nobel NV | | | 887,585 | | | | 1.1 | |
| 33,086 | | | | | | Royal Dutch Shell PLC | | | 1,173,217 | | | | 1.5 | |
| 39,602 | | | | | | Koninklijke Philips Electronics NV | | | 824,384 | | | | 1.0 | |
| 50,404 | | | | | | Other Securities | | | 255,215 | | | | 0.3 | |
| | | | | | | | | | 3,140,401 | | | | 3.9 | |
| |
| |
| 120,668 | | | | | | Other Securities | | | 379,081 | | | | 0.5 | |
| |
| |
COMMON STOCK: (continued) |
| |
| 341,000 | | | | | | Singapore Telecommunications Ltd. | | $ | 862,155 | | | | 1.1 | |
| 59,500 | | | | | | Other Securities | | | 581,182 | | | | 0.7 | |
| | | | | | | | | | 1,443,337 | | | | 1.8 | |
| |
| |
| 8,710 | | | | | | Other Securities | | | 391,712 | | | | 0.5 | |
| |
| |
| 11,910 | | | | | | Other Securities | | | 410,287 | | | | 0.5 | |
| |
| |
| 54,082 | | | | | | Other Securities | | | 812,118 | | | | 1.0 | |
| |
| |
| 73,124 | | | | | | Other Securities | | | 762,210 | | | | 1.0 | |
| |
| |
| 5,225 | | | | | | Roche Holding AG —Genusschein | | | 857,263 | | | | 1.1 | |
| 20,631 | | | | | | Transocean Ltd. | | | 1,179,061 | | | | 1.5 | |
| 3,897 | | | | | | Zurich Financial Services AG | | | 898,039 | | | | 1.1 | |
| 24,777 | | | | | | Other Securities | | | 907,466 | | | | 1.1 | |
| | | | | | | | | | 3,841,829 | | | | 4.8 | |
| |
| |
| 74,349 | | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. ADR | | | 938,285 | | | | 1.2 | |
| 316,000 | | | | | | Other Securities | | | 680,794 | | | | 0.8 | |
| | | | | | | | | | 1,619,079 | | | | 2.0 | |
| |
| |
| 27,661 | | | | | | BHP Billiton PLC | | | 871,030 | | | | 1.1 | |
| 282,506 | | | | | | BT Group PLC | | | 852,383 | | | | 1.0 | |
| 100,472 | | | | | | HSBC Holdings PLC | | | 876,648 | | | | 1.1 | |
| 25,775 | | | | | | Imperial Tobacco Group PLC | | | 938,902 | | | | 1.2 | |
| 100,473 | | | | | | Reed Elsevier PLC | | | 860,131 | | | | 1.1 | |
| 39,777 | | | | | | Scottish & Southern Energy PLC | | | 859,428 | | | | 1.1 | |
| 94,285 | | | | | | Other Securities | | | 1,634,744 | | | | 2.0 | |
| | | | | | | | | | 6,893,266 | | | | 8.6 | |
| |
| |
| 17,178 | | | | | | Abbott Laboratories | | | 925,379 | | | | 1.2 | |
| 10,600 | | | | | | Air Products & Chemicals, Inc. | | | 913,084 | | | | 1.1 | |
| 28,073 | | | | | | Arthur J. Gallagher & Co. | | | 867,456 | | | | 1.1 | |
| 41,998 | | | | | | AT&T, Inc. | | | 1,230,961 | | | | 1.5 | |
| 24,700 | | | | | | Bristol-Myers Squibb Co. | | | 780,273 | | | | 1.0 | |
| 25,046 | | | | | | Carnival Corp. | | | 881,870 | | | | 1.1 | |
| 25,400 | | | | | | CenturyTel, Inc. | | | 895,604 | | | | 1.1 | |
| 7,500 | | | | | | Chevron Corp. | | | 787,875 | | | | 1.0 | |
See Accompanying Notes to Financial Statements
137
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL EQUITY DIVIDEND FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued)
|
| United States: (continued)
|
| 32,700 | | | | | | Dow Chemical Co. | | $ | 911,676 | | | | 1.1 | |
| 24,312 | | | | | | Exelon Corp. | | | 1,079,210 | | | | 1.3 | |
| 14,900 | | | | | | ExxonMobil Corp. | | | 1,163,541 | | | | 1.4 | |
| 21,027 | | | | | | Freeport-McMoRan Copper & Gold, Inc. | | | 846,547 | | | | 1.1 | |
| 72,561 | | | | | | General Electric Co. | | | 1,212,494 | | | | 1.5 | |
| 25,000 | | | | | | Home Depot, Inc. | | | 895,000 | | | | 1.1 | |
| 13,161 | | | | | | Johnson & Johnson | | | 847,437 | | | | 1.1 | |
| 24,388 | | | | | | JPMorgan Chase & Co. | | | 847,727 | | | | 1.1 | |
| 26,981 | | | | | | Kraft Foods, Inc. | | | 949,192 | | | | 1.2 | |
| 25,800 | | | | | | Medtronic, Inc. | | | 896,292 | | | | 1.1 | |
| 46,925 | | | | | | Microsoft Corp. | | | 1,249,613 | | | | 1.6 | |
| 21,969 | | | | | | Molson Coors Brewing Co. | | | 930,167 | | | | 1.2 | |
| 12,794 | | | | | | PepsiCo, Inc. | | | 805,382 | | | | 1.0 | |
| 43,547 | | | | | | Pfizer, Inc. | | | 838,715 | | | | 1.0 | |
| 43,311 | | | | L | | Pitney Bowes, Inc. | | | 882,678 | | | | 1.1 | |
| 16,000 | | | | | | PNC Financial Services Group, Inc. | | | 859,360 | | | | 1.1 | |
| 29,342 | | | | | | PPL Corp. | | | 861,774 | | | | 1.1 | |
| 10,300 | | | | | | United Technologies Corp. | | | 803,194 | | | | 1.0 | |
| 349,156 | | | | | | Other Securities | | | 10,989,363 | | | | 13.7 | |
| | | | | | | | | | 35,151,864 | | | | 43.9 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $78,865,402) | | | 77,466,209 | | | | 96.8 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 1.6%
|
| Securities Lending Collateralcc(1): 1.6%
|
| 245,467 | | | | | | Cantor Fitzgerald, Repurchase Agreement dated 10/31/11, 0.15%, due 11/01/11 (Principal Amount $245,467, collateralized by various U.S. Government Agency Obligations, 0.742%– 6.579%, Market Value plus accrued interest $250,376, due 11/01/15–03/01/48) | | | 245,467 | | | | 0.3 | |
| 1,000,000 | | | | | | Citigroup, Inc., Repurchase Agreement dated 10/31/11, 0.13%, due 11/01/11 (Principal Amount $1,000,000, collateralized by various U.S. Government and U.S. Government Agency Obligations, 0.000%–6.125%, Market Value plus accrued interest $1,020,000 due 12/29/11– 05/15/37) | | | 1,000,000 | | | | 1.3 | |
| | | | | | | | | | 1,245,467 | | | | 1.6 | |
| |
SHORT-TERM INVESTMENTS: (continued)
|
| Securities Lending Collateralcc(1): (continued)
|
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $1,245,467) | | $ | 1,245,467 | | | | 1.6 | |
| |
| | | | | | | Total Investments in Securities
(Cost $80,110,869) | | $ | 78,711,676 | | | | 98.4 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 1,287,034 | | | | 1.6 | |
| | | | | | | Net Assets | | $ | 79,998,710 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| ADR | | American Depository 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | | Cost for federal income tax purposes is $81,203,749. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 4,417,607 | |
| Gross Unrealized Depreciation | | | | | (6,909,680 | ) |
| Net Unrealized depreciation | | | | $ | (2,492,073 | ) |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 7.1 | % |
| Consumer Staples | | | | | 8.6 | |
| Energy | | | | | 10.7 | |
| Financials | | | | | 17.7 | |
| Health Care | | | | | 10.8 | |
| Industrials | | | | | 12.2 | |
| Information Technology | | | | | 8.8 | |
| Materials | | | | | 8.6 | |
| Telecommunications | | | | | 6.2 | |
| Utilities | | | | | 6.1 | |
| Short-Term Investments | | | | | 1.6 | |
| Assets in Excess of Other Liabilities | | | | | 1.6 | |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
138
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL EQUITY DIVIDEND FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 1,001,653 | | | $ | — | | | $ | 1,001,653 | |
| Brazil | | | | | 587,057 | | | | — | | | | — | | | | 587,057 | |
| Canada | | | | | 2,005,438 | | | | — | | | | — | | | | 2,005,438 | |
| Denmark | | | | | — | | | | 297,190 | | | | — | | | | 297,190 | |
| France | | | | | — | | | | 4,946,075 | | | | — | | | | 4,946,075 | |
| Germany | | | | | — | | | | 4,001,350 | | | | — | | | | 4,001,350 | |
| Hong Kong | | | | | 790,162 | | | | — | | | | — | | | | 790,162 | |
| Ireland | | | | | — | | | | 767,561 | | | | — | | | | 767,561 | |
| Italy | | | | | — | | | | 756,399 | | | | — | | | | 756,399 | |
| Japan | | | | | — | | | | 6,701,868 | | | | — | | | | 6,701,868 | |
| Luxembourg | | | | | — | | | | 766,272 | | | | — | | | | 766,272 | |
| Netherlands | | | | | — | | | | 3,140,401 | | | | — | | | | 3,140,401 | |
| Portugal | | | | | — | | | | 379,081 | | | | — | | | | 379,081 | |
| Singapore | | | | | — | | | | 1,443,337 | | | | — | | | | 1,443,337 | |
| South Africa | | | | | — | | | | 391,712 | | | | — | | | | 391,712 | |
| South Korea | | | | | — | | | | 410,287 | | | | — | | | | 410,287 | |
| Spain | | | | | — | | | | 812,118 | | | | — | | | | 812,118 | |
| Sweden | | | | | — | | | | 762,210 | | | | — | | | | 762,210 | |
| Switzerland | | | | | 1,179,061 | | | | 2,662,768 | | | | — | | | | 3,841,829 | |
| Taiwan | | | | | 938,285 | | | | 680,794 | | | | — | | | | 1,619,079 | |
| United Kingdom | | | | | 387,348 | | | | 6,505,918 | | | | — | | | | 6,893,266 | |
| United States | | | | | 35,151,864 | | | | — | | | | — | | | | 35,151,864 | |
| Total Common Stock | | | | | 41,039,215 | | | | 36,426,994 | | | | — | | | | 77,466,209 | |
| Short-Term Investments | | | | | — | | | | 1,245,467 | | | | — | | | | 1,245,467 | |
| Total Investments, at value | | | | $ | 41,039,215 | | | $ | 37,672,461 | | | $ | — | | | $ | 78,711,676 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | | | $ | 99,120 | | | $ | — | | | $ | (99,120 | ) | | $ | — | | | $ | (24,780 | ) | | $ | 24,780 | | | $ | — | | | $ | — | | | $ | — | |
| Total Investments, at value | | | | $ | 99,120 | | | $ | — | | | $ | (99,120 | ) | | $ | — | | | $ | (24,780 | ) | | $ | 24,780 | | | $ | — | | | $ | — | | | $ | — | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
139
PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GLOBAL NATURAL RESOURCES FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 98.1%
|
| |
| 29,600 | | | | | | YPF SA ADR | | $ | 994,856 | | | | 0.9 | |
| | | | | | | | | | | | | | | |
| |
| 59,549 | | | | | | Barrick Gold Corp. | | | 2,947,675 | | | | 2.6 | |
| 48,500 | | | | | | Centerra Gold, Inc. | | | 961,485 | | | | 0.9 | |
| 61,208 | | | | | | GoldCorp, Inc. | | | 2,989,399 | | | | 2.6 | |
| 55,000 | | | | @ | | Harry Winston Diamond Corp. | | | 666,566 | | | | 0.6 | |
| 135,200 | | | | @ | | Lundin Mining Corp. | | | 530,356 | | | | 0.5 | |
| 48,429 | | | | | | Teck Cominco Ltd. — Class B | | | 1,942,003 | | | | 1.7 | |
| 65,789 | | | | | | Trican Well Services Ltd. | | | 1,163,642 | | | | 1.0 | |
| | | | | | | | | | 11,201,126 | | | | 9.9 | |
| | | | | | | | | | | | | | | |
| |
| 18,487 | | | | | | Technip S.A. | | | 1,748,076 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| |
| 66,373 | | | | | | Royal Dutch Shell PLC — Class A ADR | | | 4,706,509 | | | | 4.2 | |
| | | | | | | | | | | | | | | |
| |
| 104,600 | | | | | | Statoil ASA ADR | | | 2,659,978 | | | | 2.4 | |
| | | | | | | | | | | | | | | |
| |
| 30,200 | | | | | | Antofagasta PLC | | | 562,083 | | | | 0.5 | |
| 85,231 | | | | | | BG Group PLC | | | 1,848,148 | | | | 1.6 | |
| 45,365 | | | | | | Ensco International PLC ADR | | | 2,252,826 | | | | 2.0 | |
| 5,100 | | | | | | Randgold Resources Ltd. ADR | | | 558,807 | | | | 0.5 | |
| | | | | | | | | | 5,221,864 | | | | 4.6 | |
| | | | | | | | | | | | | | | |
| |
| 46,200 | | | | | | Anadarko Petroleum Corp. | | | 3,626,700 | | | | 3.2 | |
| 11,987 | | | | | | Apache Corp. | | | 1,194,265 | | | | 1.1 | |
| 95,309 | | | | | | Arch Coal, Inc. | | | 1,736,530 | | | | 1.5 | |
| 68,600 | | | | @ | | Basic Energy Services, Inc. | | | 1,258,124 | | | | 1.1 | |
| 65,700 | | | | @ | | Cameron International Corp. | | | 3,228,498 | | | | 2.9 | |
| 73,067 | | | | | | Chevron Corp. | | | 7,675,688 | | | | 6.8 | |
| 33,980 | | | | | | Cimarex Energy Co. | | | 2,174,720 | | | | 1.9 | |
| 22,400 | | | | | | Cliffs Natural Resources, Inc. | | | 1,528,128 | | | | 1.3 | |
| 52,900 | | | | | | Devon Energy Corp. | | | 3,435,855 | | | | 3.0 | |
| 17,300 | | | | | | Domtar Corp. | | | 1,417,043 | | | | 1.3 | |
| 44,800 | | | | @ | | Energy XXI Bermuda Ltd. | | | 1,315,776 | | | | 1.2 | |
| 41,300 | | | | | | EOG Resources, Inc. | | | 3,693,459 | | | | 3.3 | |
| 37,000 | | | | | | EQT Corp. | | | 2,349,500 | | | | 2.1 | |
| 127,264 | | | | | | ExxonMobil Corp. | | | 9,938,046 | | | | 8.8 | |
| 37,700 | | | | | | Freeport-McMoRan Copper & Gold, Inc. | | | 1,517,802 | | | | 1.3 | |
| 59,300 | | | | @ | | FX Energy, Inc. | | | 351,056 | | | | 0.3 | |
| |
COMMON STOCK: (continued) |
| United States: (continued)
|
| 133,728 | | | | | | Halliburton Co. | | $ | 4,996,078 | | | | 4.4 | |
| 57,600 | | | | | | Hess Corp. | | | 3,603,456 | | | | 3.2 | |
| 102,900 | | | | @ | | Key Energy Services, Inc. | | | 1,330,497 | | | | 1.2 | |
| 99,800 | | | | | | Marathon Oil Corp. | | | 2,597,794 | | | | 2.3 | |
| 8,600 | | | | | | Martin Marietta Materials, Inc. | | | 620,662 | | | | 0.5 | |
| 61,500 | | | | | | Murphy Oil Corp. | | | 3,405,255 | | | | 3.0 | |
| 63,178 | | | | | | National Oilwell Varco, Inc. | | | 4,506,487 | | | | 4.0 | |
| 41,000 | | | | | | Newmont Mining Corp. | | | 2,740,030 | | | | 2.4 | |
| 29,500 | | | | | | Patterson-UTI Energy, Inc. | | | 599,440 | | | | 0.5 | |
| 44,200 | | | | | | Range Resources Corp. | | | 3,042,728 | | | | 2.7 | |
| 66,100 | | | | @ | | Rowan Cos., Inc. | | | 2,279,789 | | | | 2.0 | |
| 56,260 | | | | | | Schlumberger Ltd. | | | 4,133,422 | | | | 3.7 | |
| 54,500 | | | | @ | | Southwestern Energy Co. | | | 2,291,180 | | | | 2.0 | |
| 36,100 | | | | @ | | Unit Corp. | | | 1,771,066 | | | | 1.6 | |
| | | | | | | | | | 84,359,074 | | | | 74.6 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $95,977,008) | | | 110,891,483 | | | | 98.1 | |
| |
SHORT-TERM INVESTMENTS: 2.2% |
| |
| 2,526,000 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class | | | | | | | | |
| | | | | | | (Cost $2,526,000) | | | 2,526,000 | | | | 2.2 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $2,526,000) | | | 2,526,000 | | | | 2.2 | |
| |
| | | | | | | Total Investments in Securities
(Cost $98,503,008) | | $ | 113,417,483 | | | | 100.3 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (353,090 | ) | | | (0.3 | ) |
| | | | | | | Net Assets | | $ | 113,064,393 | | | | 100.0 | |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| | | Cost for federal income tax purposes is $100,621,706. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 17,285,852 | |
| Gross Unrealized Depreciation | | | | | (4,490,075 | ) |
| Net Unrealized appreciation | | | | $ | 12,795,777 | |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Energy | | | | | 81.4 | % |
| Materials | | | | | 16.7 | |
| Short-Term Investments | | | | | 2.2 | |
| Liabilities in Excess of Other Assets | | | | | (0.3 | ) |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
140
PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL NATURAL RESOURCES FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Argentina | | | | $ | 994,856 | | | $ | — | | | $ | — | | | $ | 994,856 | |
| Canada | | | | | 11,201,126 | | | | — | | | | — | | | | 11,201,126 | |
| France | | | | | — | | | | 1,748,076 | | | | — | | | | 1,748,076 | |
| Netherlands | | | | | 4,706,509 | | | | — | | | | — | | | | 4,706,509 | |
| Norway | | | | | 2,659,978 | | | | — | | | | — | | | | 2,659,978 | |
| United Kingdom | | | | | 2,252,826 | | | | 2,969,038 | | | | — | | | | 5,221,864 | |
| United States | | | | | 84,359,074 | | | | — | | | | — | | | | 84,359,074 | |
| Total Common Stock | | | | | 106,174,369 | | | | 4,717,114 | | | | — | | | | 110,891,483 | |
| Short-Term Investments | | | | | 2,526,000 | | | | — | | | | — | | | | 2,526,000 | |
| Total Investments, at value | | | | $ | 108,700,369 | | | $ | 4,717,114 | | | $ | — | | | $ | 113,417,483 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
141
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GLOBAL OPPORTUNITIES FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 100.2%
|
| |
| 171,570 | | | | | | Other Securities | | $ | 1,422,560 | | | | 2.2 | |
| | | | | | | | | | | | | | | |
| |
| 24,700 | | | | | | Suncor Energy, Inc. | | | 786,782 | | | | 1.2 | |
| | | | | | | | | | | | | | | |
| |
| 213,000 | | | | | | China Resources Enterprise | | | 777,886 | | | | 1.2 | |
| 327,000 | | | | L | | China Yurun Food Group Ltd. | | | 567,574 | | | | 0.8 | |
| 4,152,975 | | | | | | Other Securities | | | 3,206,424 | | | | 4.9 | |
| | | | | | | | | | 4,551,884 | | | | 6.9 | |
| | | | | | | | | | | | | | | |
| |
| 6,500 | | | | | | Novo-Nordisk A/S | | | 690,082 | | | | 1.1 | |
| | | | | | | | | | | | | | | |
| |
| 5,500 | | | | | | LVMH Moet Hennessy Louis Vuitton S.A. | | | 911,593 | | | | 1.4 | |
| 12,795 | | | | | | Vinci S.A. | | | 627,446 | | | | 0.9 | |
| 12,811 | | | | | | Other Securities | | | 371,785 | | | | 0.6 | |
| | | | | | | | | | 1,910,824 | | | | 2.9 | |
| | | | | | | | | | | | | | | |
| |
| 9,000 | | | | | | Bayer AG | | | 573,408 | | | | 0.9 | |
| 27,821 | | | | | | Other Securities | | | 393,916 | | | | 0.6 | |
| | | | | | | | | | 967,324 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| |
| 1,572,000 | | | | | | Hengdeli Holdings Ltd. | | | 704,755 | | | | 1.1 | |
| 48,000 | | | | | | Other Securities | | | 5,097 | | | | 0.0 | |
| | | | | | | | | | 709,852 | | | | 1.1 | |
| | | | | | | | | | | | | | | |
| |
| 130,000 | | | | | | Other Securities | | | 494,688 | | | | 0.8 | |
| | | | | | | | | | | | | | | |
| |
| 126,753 | | | | | | Astra International Tbk PT | | | 977,365 | | | | 1.5 | |
| 1,219,828 | | | | | | Bank Mandiri Persero TBK PT | | | 973,040 | | | | 1.5 | |
| 1,499,895 | | | | | | Other Securities | | | 391,768 | | | | 0.6 | |
| | | | | | | | | | 2,342,173 | | | | 3.6 | |
| | | | | | | | | | | | | | | |
| |
| 19,000 | | | | | | Ingersoll-Rand PLC | | | 591,470 | | | | 0.9 | |
| | | | | | | | | | | | | | | |
| |
| 71,000 | | | | @ | | Fiat Industrial SpA | | | 618,160 | | | | 0.9 | |
| | | | | | | | | | | | | | | |
| |
| 103,000 | | | | | | Hitachi Ltd. | | | 551,903 | | | | 0.8 | |
| 41,600 | | | | | | Mitsui & Co., Ltd. | | | 607,132 | | | | 0.9 | |
| 139,747 | | | | | | Other Securities | | | 3,192,105 | | | | 4.9 | |
| | | | | | | | | | 4,351,140 | | | | 6.6 | |
| | | | | | | | | | | | | | | |
| |
| 250,000 | | | | @ | | Sands China Ltd. | | | 751,297 | | | | 1.1 | |
| | | | | | | | | | | | | | | |
| |
| 170,000 | | | | | | Other Securities | | | 213,642 | | | | 0.3 | |
| |
COMMON STOCK: (continued) |
| |
| 239,649 | | | | | | Other Securities | | $ | 320,803 | | | | 0.5 | |
| |
| |
| 46,457 | | | | | | Koninklijke KPN NV | | | 608,258 | | | | 0.9 | |
| 27,401 | | | | | | Royal Dutch Shell PLC | | | 971,629 | | | | 1.5 | |
| 30,832 | | | | | | Unilever NV | | | 1,064,434 | | | | 1.6 | |
| 189,983 | | | | | | Other Securities | | | 1,176,739 | | | | 1.8 | |
| | | | | | | | | | 3,821,060 | | | | 5.8 | |
| | | | | | | | | | | | | | | |
| |
| 31,810 | | | | | | Telenor ASA | | | 566,623 | | | | 0.9 | |
| | | | | | | | | | | | | | | |
| |
| 3,869 | | | | | | Other Securities | | | 420,870 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| |
| 30,000 | | | | | | Other Securities | | | 341,207 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| |
| 68,045 | | | | | | Other Securities | | | 486,602 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| |
| 60,000 | | | | | | Gazprom OAO ADR | | | 700,200 | | | | 1.1 | |
| 12,000 | | | | | | Other Securities | | | 359,634 | | | | 0.5 | |
| | | | | | | | | | 1,059,834 | | | | 1.6 | |
| | | | | | | | | | | | | | | |
| |
| 113,000 | | | | | | Oversea-Chinese Banking Corp. | | | 756,531 | | | | 1.2 | |
| | | | | | | | | | | | | | | |
| |
| 1,057 | | | | | | Samsung Electronics Co., Ltd. | | | 909,930 | | | | 1.4 | |
| 13,209 | | | | | | Other Securities | | | 526,209 | | | | 0.8 | |
| | | | | | | | | | 1,436,139 | | | | 2.2 | |
| | | | | | | | | | | | | | | |
| |
| 21,500 | | | | | | Other Securities | | | 456,910 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| |
| 41,003 | | | | | | ABB Ltd. | | | 771,899 | | | | 1.2 | |
| 16,500 | | | | | | Compagnie Financiere Richemont S.A. | | | 939,916 | | | | 1.4 | |
| 30,925 | | | | | | Credit Suisse Group | | | 891,909 | | | | 1.4 | |
| 23,304 | | | | | | Nestle S.A. | | | 1,347,850 | | | | 2.1 | |
| 19,000 | | | | | | Novartis AG | | | 1,070,370 | | | | 1.6 | |
| 28,513 | | | | | | Other Securities | | | 726,041 | | | | 1.1 | |
| | | | | | | | | | 5,747,985 | | | | 8.8 | |
| | | | | | | | | | | | | | | |
| |
| 22,050 | | | | | | Other Securities | | | 495,542 | | | | 0.8 | |
| | | | | | | | | | | | | | | |
| |
| 47,905 | | | | | | BG Group PLC | | | 1,038,771 | | | | 1.6 | |
| 17,456 | | | | | | BHP Billiton PLC | | | 549,680 | | | | 0.8 | |
| 157,453 | | | | | | BP PLC | | | 1,158,669 | | | | 1.8 | |
See Accompanying Notes to Financial Statements
142
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL OPPORTUNITIES FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| United Kingdom: (continued) |
| 131,885 | | | | | | HSBC Holdings PLC | | $ | 1,150,736 | | | | 1.7 | |
| 26,500 | | | | | | Imperial Tobacco Group PLC | | | 965,312 | | | | 1.5 | |
| 81,399 | | | | | | Other Securities | | | 1,583,823 | | | | 2.4 | |
| | | | | | | | | | 6,446,991 | | | | 9.8 | |
| |
| |
| 29,799 | | | | @ | | Adobe Systems, Inc. | | | 876,389 | | | | 1.3 | |
| 3,510 | | | | @ | | Apple, Inc. | | | 1,420,778 | | | | 2.2 | |
| 8,807 | | | | @ | | Celgene Corp. | | | 570,958 | | | | 0.9 | |
| 31,851 | | | | | | Citigroup, Inc. | | | 1,006,173 | | | | 1.5 | |
| 2,518 | | | | @ | | Google, Inc. — Class A | | | 1,492,267 | | | | 2.3 | |
| 25,960 | | | | @ | | Juniper Networks, Inc. | | | 635,241 | | | | 1.0 | |
| 9,089 | | | | | | Mead Johnson Nutrition Co. | | | 653,045 | | | | 1.0 | |
| 42,857 | | | | | | Microsoft Corp. | | | 1,141,282 | | | | 1.7 | |
| 49,098 | | | | @ | | NetApp, Inc. | | | 2,011,054 | | | | 3.1 | |
| 7,138 | | | | | | Occidental Petroleum Corp. | | | 663,406 | | | | 1.0 | |
| 12,000 | | | | | | PepsiCo, Inc. | | | 755,400 | | | | 1.2 | |
| 14,466 | | | | @ | | Southwestern Energy Co. | | | 608,151 | | | | 0.9 | |
| 35,415 | | | | @ | | Symantec Corp. | | | 602,409 | | | | 0.9 | |
| 9,341 | | | | @ | | Teradata Corp. | | | 557,284 | | | | 0.8 | |
| 15,185 | | | | @ | | Thermo Fisher Scientific, Inc. | | | 763,350 | | | | 1.2 | |
| 50,000 | | | | @ | | Weatherford International Ltd. | | | 775,000 | | | | 1.2 | |
| 10,025 | | | | | | Yum! Brands, Inc. | | | 537,039 | | | | 0.8 | |
| 237,340 | | | | | | Other Securities | | | 7,886,921 | | | | 12.0 | |
| | | | | | | | | | 22,956,147 | | | | 35.0 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $61,850,364) | | | 65,715,122 | | | | 100.2 | |
| |
EXCHANGE-TRADED FUNDS: 2.1% |
| 20,784 | | | | @ | | SPDR S&P Biotech ETF | | | 1,374,030 | | | | 2.1 | |
| |
| | | | | | | Total Exchange-Traded Funds | | | | | | | | |
| | | | | | | (Cost $1,034,730) | | | 1,374,030 | | | | 2.1 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $62,885,094) | | | 67,089,152 | | | | 102.3 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 2.7% |
| Securities Lending Collateralcc(1): 2.7%
|
| 1,000,000 | | | | | | Cantor Fitzgerald, Repurchase Agreement dated 10/31/11, 0.15%, due 11/01/11 (Principal Amount $1,000,000, collateralized by various U.S. Government Agency Obligations, 0.742%–6.579%, Market Value plus accrued interest $1,020,000, due 11/01/15–03/01/48) | | $ | 1,000,000 | | | | 1.5 | |
| 758,983 | | | | | | Merrill Lynch & Co., Inc., Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $758,983, collateralized by various U.S. Government Agency Obligations, 3.000%–6.000%, Market Value plus accrued interest $774,215, due 09/01/21–11/01/41) | | | 758,983 | | | | 1.2 | |
| | | | | | | | | | 1,758,983 | | | | 2.7 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $1,758,983) | | | 1,758,983 | | | | 2.7 | |
| |
| | | | | | | Total Investments in Securities
(Cost $64,644,077) | | $ | 68,848,135 | | | | 105.0 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (3,284,143 | ) | | | (5.0 | ) |
| | | | | | | Net Assets | | $ | 65,563,992 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| @ | | Non-income producing security |
| ADR | | American Depository 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | | Cost for federal income tax purposes is $65,063,037. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 9,381,286 | |
| Gross Unrealized Depreciation | | | | | (5,596,188 | ) |
| Net Unrealized appreciation | | | | $ | 3,785,098 | |
See Accompanying Notes to Financial Statements
143
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL OPPORTUNITIES FUND
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 9.7 | % |
| Consumer Staples | | | | | 12.3 | |
| Energy | | | | | 12.8 | |
| Financials | | | | | 17.0 | |
| Health Care | | | | | 7.5 | |
| Industrials | | | | | 9.3 | |
| Information Technology | | | | | 21.8 | |
| Materials | | | | | 5.1 | |
| Telecommunications | | | | | 3.7 | |
| Utilities | | | | | 1.0 | |
| Other Long-Term Investments | | | | | 2.1 | |
| Short-Term Investments | | | | | 2.7 | |
| Liabilities in Excess of Other Assets | | | | | (5.0 | ) |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Brazil | | | | $ | 1,422,560 | | | $ | — | | | $ | — | | | $ | 1,422,560 | |
| Canada | | | | | 786,782 | | | | — | | | | — | | | | 786,782 | |
| China | | | | | — | | | | 4,551,884 | | | | — | | | | 4,551,884 | |
| Denmark | | | | | — | | | | 690,082 | | | | — | | | | 690,082 | |
| France | | | | | — | | | | 1,910,824 | | | | — | | | | 1,910,824 | |
| Germany | | | | | — | | | | 967,324 | | | | — | | | | 967,324 | |
| Hong Kong | | | | | — | | | | 704,755 | | | | 5,097 | | | | 709,852 | |
| India | | | | | — | | | | 494,688 | | | | — | | | | 494,688 | |
| Indonesia | | | | | — | | | | 2,342,173 | | | | — | | | | 2,342,173 | |
| Ireland | | | | | 591,470 | | | | — | | | | — | | | | 591,470 | |
| Italy | | | | | — | | | | 618,160 | | | | — | | | | 618,160 | |
| Japan | | | | | — | | | | 4,351,140 | | | | — | | | | 4,351,140 | |
| Macau | | | | | — | | | | 751,297 | | | | — | | | | 751,297 | |
| Malaysia | | | | | — | | | | 213,642 | | | | — | | | | 213,642 | |
| Mexico | | | | | 320,803 | | | | — | | | | — | | | | 320,803 | |
| Netherlands | | | | | — | | | | 3,821,060 | | | | — | | | | 3,821,060 | |
| Norway | | | | | — | | | | 566,623 | | | | — | | | | 566,623 | |
| Peru | | | | | 420,870 | | | | — | | | | — | | | | 420,870 | |
| Poland | | | | | — | | | | 341,207 | | | | — | | | | 341,207 | |
| Portugal | | | | | — | | | | 486,602 | | | | — | | | | 486,602 | |
| Russia | | | | | 700,200 | | | | 359,634 | | | | — | | | | 1,059,834 | |
| Singapore | | | | | — | | | | 756,531 | | | | — | | | | 756,531 | |
| South Korea | | | | | — | | | | 1,436,139 | | | | — | | | | 1,436,139 | |
| Spain | | | | | — | | | | 456,910 | | | | — | | | | 456,910 | |
| Switzerland | | | | | — | | | | 5,747,985 | | | | — | | | | 5,747,985 | |
| Taiwan | | | | | — | | | | 495,542 | | | | — | | | | 495,542 | |
| United Kingdom | | | | | — | | | | 6,446,991 | | | | — | | | | 6,446,991 | |
| United States | | | | | 22,956,147 | | | | — | | | | — | | | | 22,956,147 | |
| Total Common Stock | | | | | 27,198,832 | | | | 38,511,193 | | | | 5,097 | | | | 65,715,122 | |
| Exchange-Traded Funds | | | | | 1,374,030 | | | | — | | | | — | | | | 1,374,030 | |
| Short-Term Investments | | | | | — | | | | 1,758,983 | | | | — | | | | 1,758,983 | |
| Total Investments, at value | | | | $ | 28,572,862 | | | $ | 40,270,176 | | | $ | 5,097 | | | $ | 68,848,135 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
144
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL OPPORTUNITIES FUND
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | — | | | $ | — | | | $ | (654,531 | ) | | $ | — | | | $ | (732,682 | ) | | $ | 221,841 | | | $ | 1,170,469 | | | $ | — | | | $ | 5,097 | |
| Short-Term Investments | | | | $ | 138,966 | | | $ | — | | | $ | (138,966 | ) | | $ | — | | | $ | (34,471 | ) | | $ | 34,471 | | | $ | — | | | $ | — | | | $ | — | |
| Total Investments, at value | | | | $ | 138,966 | | | $ | — | | | $ | (793,497 | ) | | $ | — | | | $ | (767,153 | ) | | $ | 256,312 | | | $ | 1,170,469 | | | $ | — | | | $ | 5,097 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $221,841.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
145
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GLOBAL REAL ESTATE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 98.9%
|
| |
| 44,288,716 | | | | | | Dexus Property Group | | $ | 39,397,381 | | | | 1.2 | |
| 53,480,027 | | | | | | Goodman Group | | | 34,753,394 | | | | 1.0 | |
| 16,339,520 | | | | | | GPT Group | | | 53,925,100 | | | | 1.6 | |
| 37,051,100 | | | | | | Investa Office Fund | | | 24,221,992 | | | | 0.7 | |
| 7,659,060 | | | | | | Stockland | | | 25,291,728 | | | | 0.7 | |
| 10,377,134 | | | | | | Westfield Group | | | 83,539,636 | | | | 2.4 | |
| 19,766,781 | | | | | | Westfield Retail Trust | | | 52,678,223 | | | | 1.5 | |
| 15,967,209 | | | | | | Other Securities | | | 25,795,096 | | | | 0.8 | |
| | | | | | | | | | 339,602,550 | | | | 9.9 | |
| | | | | | | | | | | | | | | |
| |
| 1,420,800 | | | | | | Other Securities | | | 16,621,431 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| |
| 2,146,700 | | | | | | Brookfield Properties Co. | | | 35,463,484 | | | | 1.0 | |
| 1,589,900 | | | | | | RioCan Real Estate Investment Trust | | | 40,339,675 | | | | 1.2 | |
| 1,678,100 | | | | | | Other Securities | | | 44,079,803 | | | | 1.3 | |
| | | | | | | | | | 119,882,962 | | | | 3.5 | |
| | | | | | | | | | | | | | | |
| |
| 19,426,900 | | | | | | Other Securities | | | 19,944,703 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| |
| 486,756 | | | | | | Unibail | | | 96,771,661 | | | | 2.8 | |
| 1,172,012 | | | | | | Other Securities | | | 58,640,323 | | | | 1.7 | |
| | | | | | | | | | 155,411,984 | | | | 4.5 | |
| | | | | | | | | | | | | | | |
| |
| 674,160 | | | | | | Other Securities | | | 21,902,786 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| |
| 6,927,763 | | | | | | Cheung Kong Holdings Ltd. | | | 85,876,072 | | | | 2.5 | |
| 10,966,245 | | | | | | Hang Lung Properties Ltd. | | | 39,937,046 | | | | 1.2 | |
| 4,860,594 | | | | | | Hongkong Land Holdings Ltd. | | | 25,542,601 | | | | 0.7 | |
| 15,562,900 | | | | | | Link Real Estate Investment Trust | | | 53,446,756 | | | | 1.6 | |
| 6,850,000 | | | | | | Sun Hung Kai Properties Ltd. | | | 94,316,133 | | | | 2.7 | |
| 20,521,046 | | | | | | Other Securities | | | 69,663,220 | | | | 2.0 | |
| | | | | | | | | | 368,781,828 | | | | 10.7 | |
| | | | | | | | | | | | | | | |
| |
| 536,300 | | | | | | Daito Trust Construction Co., Ltd. | | | 47,516,482 | | | | 1.4 | |
| 3,875 | | | | | | Japan Real Estate Investment Corp. | | | 33,052,604 | | | | 1.0 | |
| 7,009,230 | | | | | | Mitsubishi Estate Co., Ltd. | | | 118,715,610 | | | | 3.4 | |
| 5,645,888 | | | | | | Mitsui Fudosan Co., Ltd. | | | 93,892,735 | | | | 2.7 | |
| 3,511 | | | | | | Nippon Building Fund, Inc. | | | 33,904,705 | | | | 1.0 | |
| 1,926,752 | | | | | | Other Securities | | | 114,290,387 | | | | 3.3 | |
| | | | | | | | | | 441,372,523 | | | | 12.8 | |
| | | | | | | | | | | | | | | |
| |
| 388,620 | | | | | | Other Securities | | | 19,749,030 | | | | 0.6 | |
| |
COMMON STOCK: (continued) |
| |
| 28,134,000 | | | | L | | CapitaCommercial Trust | | $ | 25,132,711 | | | | 0.7 | |
| 18,859,350 | | | | | | CapitaLand Ltd. | | | 40,631,454 | | | | 1.2 | |
| 25,489,600 | | | | @ | | Global Logistic Properties Ltd. | | | 35,489,961 | | | | 1.1 | |
| 33,506,291 | | | | | | Other Securities | | | 52,646,844 | | | | 1.5 | |
| | | | | | | | | | 153,900,970 | | | | 4.5 | |
| | | | | | | | | | | | | | | |
| |
| 1,303,204 | | | | | | Other Securities | | | 16,060,244 | | | | 0.4 | |
| | | | | | | | | | | | | | | |
| |
| 312,080 | | | | | | Other Securities | | | 26,219,669 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| |
| 4,812,997 | | | | | | British Land Co. PLC | | | 39,375,683 | | | | 1.1 | |
| 1,042,770 | | | | | | Derwent Valley Holdings PLC | | | 28,383,508 | | | | 0.8 | |
| 6,098,161 | | | | | | Hammerson PLC | | | 39,839,887 | | | | 1.2 | |
| 2,362,391 | | | | | | Land Securities Group PLC | | | 25,854,942 | | | | 0.8 | |
| 10,822,241 | | | | | | Other Securities | | | 37,606,899 | | | | 1.1 | |
| | | | | | | | | | 171,060,919 | | | | 5.0 | |
| | | | | | | | | | | | | | | |
| |
| 1,432,800 | | | | | | Apartment Investment & Management Co. | | | 35,347,176 | | | | 1.0 | |
| 659,408 | | | | | | AvalonBay Communities, Inc. | | | 88,156,255 | | | | 2.6 | |
| 1,020,800 | | | | | | Boston Properties, Inc. | | | 101,048,992 | | | | 2.9 | |
| 782,600 | | | | | | BRE Properties, Inc. | | | 39,223,912 | | | | 1.1 | |
| 2,350,000 | | | | | | DDR Corp. | | | 30,103,500 | | | | 0.9 | |
| 1,815,300 | | | | | | Equity Residential | | | 106,521,804 | | | | 3.1 | |
| 264,700 | | | | | | Essex Property Trust, Inc. | | | 37,788,572 | | | | 1.1 | |
| 452,100 | | | | | | Federal Realty Investment Trust | | | 40,128,396 | | | | 1.2 | |
| 3,714,911 | | | | | | General Growth Properties, Inc. | | | 54,609,192 | | | | 1.6 | |
| 1,417,929 | | | | | | HCP, Inc. | | | 56,504,471 | | | | 1.6 | |
| 935,300 | | | | | | Health Care Real Estate Investment Trust, Inc. | | | 49,280,957 | | | | 1.4 | |
| 3,665,935 | | | | | | Host Hotels & Resorts, Inc. | | | 52,312,892 | | | | 1.5 | |
| 1,370,400 | | | | | | Kimco Realty Corp. | | | 23,940,888 | | | | 0.7 | |
| 1,389,275 | | | | | | Liberty Property Trust | | | 44,456,800 | | | | 1.3 | |
| 1,348,641 | | | | | | Macerich Co. | | | 67,108,376 | | | | 2.0 | |
| 2,886,902 | | | | | | ProLogis, Inc. | | | 85,914,204 | | | | 2.5 | |
| 601,824 | | | | | | Public Storage, Inc. | | | 77,665,387 | | | | 2.3 | |
| 1,457,350 | | | | | | Simon Property Group, Inc. | | | 187,182,034 | | | | 5.4 | |
| 695,130 | | | | | | SL Green Realty Corp. | | | 47,957,019 | | | | 1.4 | |
| 579,700 | | | | | | Taubman Centers, Inc. | | | 35,495,031 | | | | 1.0 | |
| 2,247,555 | | | | | | UDR, Inc. | | | 56,031,546 | | | | 1.6 | |
| 1,286,004 | | | | | | Ventas, Inc. | | | 71,514,682 | | | | 2.1 | |
| 1,033,702 | | | | | | Vornado Realty Trust | | | 85,600,863 | | | | 2.5 | |
| 1,953,100 | | | | | | Other Securities | | | 59,956,762 | | | | 1.8 | |
| | | | | | | | | | 1,533,849,711 | | | | 44.6 | |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $2,847,224,237) | | | 3,404,361,310 | | | | 98.9 | |
See Accompanying Notes to Financial Statements
146
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL REAL ESTATE FUND
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 1.2%
|
| Securities Lending Collateralcc(1): 0.4% |
| 3,162,516 | | | | | | Barclays Bank PLC, Repurchase Agreement dated 10/31/11, 0.10%, due 11/01/11 (Principal Amount $3,162,516, collateralized by various U.S. Government Agency Obligations, 0.000%–0.375%, Market Value plus accrued interest $3,225,770, due 11/21/11–10/30/13) | | $ | 3,162,516 | | | | 0.1 | |
| 3,162,516 | | | | | | BNP Paribas Bank, Repurchase Agreement dated 10/31/11, 0.08%, due 11/01/11 (Principal Amount $3,162,516 collateralized by various U.S. Government Securities,0.000%–7.250%, Market Value plus accrued interest $3,225,767, due 11/30/11–11/15/40) | | | 3,162,516 | | | | 0.1 | |
| 3,162,516 | | | | | | Goldman Sachs & Co., Repurchase Agreement dated 10/31/11, 0.11%, due 11/01/11 (Principal Amount $3,162,516, collateralized by various U.S. Government Agency Obligations, 2.261%–7.000%, Market Value plus accrued interest $3,225,766, due 01/01/18–10/01/41) | | | 3,162,516 | | | | 0.1 | |
| 665,793 | | | | | | JPMorgan Chase & Co., Repurchase Agreement dated 10/31/11, 0.07%, due 11/01/11 (Principal Amount $665,793 collateralized by various U.S. Government Securities,1.250%–2.500%, Market Value plus accrued interest $679,115, due 07/15/13–07/15/20) | | | 665,793 | | | | 0.0 | |
| 3,162,516 | | | | | | Morgan Stanley, Repurchase Agreement dated 10/31/11, 0.15%, due 11/01/11 (Principal Amount $3,162,516, collateralized by various U.S. Government Agency Obligations, 4.000%–4.500%, Market Value plus accrued interest $3,225,767, due 03//01/41–10/01/41) | | | 3,162,516 | | | | 0.1 | |
| | | | | | | | | | 13,315,857 | | | | 0.4 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: (continued)
|
| |
| 28,270,875 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class (Cost $28,270,875) | | $ | 28,270,875 | | | | 0.8 | |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $41,586,732) | | | 41,586,732 | | | | 1.2 | |
| | | | | | | Total Investments in Securities
(Cost $2,888,810,969) | | $ | 3,445,948,042 | | | | 100.1 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (5,072,636 | ) | | | (0.1 | ) |
| | | | | | | Net Assets | | $ | 3,440,875,406 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| @ | | Non-income producing security |
| 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | | Cost for federal income tax purposes is $3,120,549,879. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 520,550,461 | |
| Gross Unrealized Depreciation | | | | | (195,152,298 | ) |
| Net Unrealized appreciation | | | | $ | 325,398,163 | |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 0.6 | % |
| Financials | | | | | 98.3 | |
| Short-Term Investments | | | | | 1.2 | |
| Liabilities in Excess of Other Assets | | | | | (0.1 | ) |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
147
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL REAL ESTATE FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 339,602,550 | | | $ | — | | | $ | 339,602,550 | |
| Brazil | | | | | 16,621,431 | | | | — | | | | — | | | | 16,621,431 | |
| Canada | | | | | 119,882,962 | | | | — | | | | — | | | | 119,882,962 | |
| China | | | | | — | | | | 19,944,703 | | | | — | | | | 19,944,703 | |
| France | | | | | — | | | | 155,411,984 | | | | — | | | | 155,411,984 | |
| Germany | | | | | — | | | | 21,902,786 | | | | — | | | | 21,902,786 | |
| Hong Kong | | | | | — | | | | 368,781,828 | | | | — | | | | 368,781,828 | |
| Japan | | | | | — | | | | 441,372,523 | | | | — | | | | 441,372,523 | |
| Netherlands | | | | | — | | | | 19,749,030 | | | | — | | | | 19,749,030 | |
| Singapore | | | | | — | | | | 153,900,970 | | | | — | | | | 153,900,970 | |
| Sweden | | | | | — | | | | 16,060,244 | | | | — | | | | 16,060,244 | |
| Switzerland | | | | | — | | | | 26,219,669 | | | | — | | | | 26,219,669 | |
| United Kingdom | | | | | — | | | | 171,060,919 | | | | — | | | | 171,060,919 | |
| United States | | | | | 1,533,849,711 | | | | — | | | | — | | | | 1,533,849,711 | |
| Total Common Stock | | | | | 1,670,354,104 | | | | 1,734,007,206 | | | | — | | | | 3,404,361,310 | |
| Short-Term Investments | | | | | 28,270,875 | | | | 13,315,857 | | | | — | | | | 41,586,732 | |
| Total Investments, at value | | | | $ | 1,698,624,979 | | | $ | 1,747,323,063 | | | $ | — | | | $ | 3,445,948,042 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | | | $ | 2,196,253 | | | $ | — | | | $ | (2,196,253 | ) | | $ | — | | | $ | (549,064 | ) | | $ | 549,064 | | | $ | — | | | $ | — | | | $ | — | |
| Total Investments, at value | | | | $ | 2,196,253 | | | $ | — | | | $ | (2,196,253 | ) | | $ | — | | | $ | (549,064 | ) | | $ | 549,064 | | | $ | — | | | $ | — | | | $ | — | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
148
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GLOBAL VALUE CHOICE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 96.6% |
| |
| 396,700 | | | | | | Newcrest Mining Ltd. | | $ | 14,020,060 | | | | 2.2 | |
| 1,006,500 | | | | | | Other Securities | | | 3,196,303 | | | | 0.5 | |
| | | | | | | | | | 17,216,363 | | | | 2.7 | |
| | | | | | | | | | | | | | | |
| |
| 780,941 | | | | | | Centrais Eletricas Brasileiras SA ADR | | | 10,894,127 | | | | 1.7 | |
| 659,500 | | | | | | Other Securities | | | 3,739,154 | | | | 0.6 | |
| | | | | | | | | | 14,633,281 | | | | 2.3 | |
| | | | | | | | | | | | | | | |
| |
| 742,000 | | | | @, L | | Bankers Petroleum Ltd. | | | 3,945,423 | | | | 0.6 | |
| 447,000 | | | | | | Barrick Gold Corp. | | | 22,126,500 | | | | 3.5 | |
| 1,018,500 | | | | | | Cameco Corp. | | | 21,826,455 | | | | 3.4 | |
| 1,063,100 | | | | @ | | Uranium Participation Corp. | | | 5,930,109 | | | | 0.9 | |
| 5,032,604 | | | | | | Other Securities | | | 12,666,177 | | | | 2.0 | |
| | | | | | | | | | 66,494,664 | | | | 10.4 | |
| | | | | | | | | | | | | | | |
| |
| 12,100,000 | | | | | | Other Securities | | | 554,471 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| |
| 932,026 | | | | | | Oriental Weavers | | | 4,842,567 | | | | 0.8 | |
| 2,612,000 | | | | | | Other Securities | | | 6,077,821 | | | | 0.9 | |
| | | | | | | | | | 10,920,388 | | | | 1.7 | |
| | | | | | | | | | | | | | | |
| |
| 1,312,000 | | | | L | | Nokia OYJ ADR | | | 8,829,760 | | | | 1.4 | |
| | | | | | | | | | | | | | | |
| |
| 749,100 | | | | | | Electricite de France SA | | | 22,418,781 | | | | 3.5 | |
| 387,000 | | | | | | Thales S.A. | | | 13,648,387 | | | | 2.1 | |
| 105,485 | | | | | | Other Securities | | | 3,087,957 | | | | 0.5 | |
| | | | | | | | | | 39,155,125 | | | | 6.1 | |
| | | | | | | | | | | | | | | |
| |
| 323,198 | | | | | | OPAP S.A. | | | 3,732,743 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| |
| 2,338,000 | | | | | | Other Securities | | | 4,271,501 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| |
| 33,935 | | | | | | Other Securities | | | 2,761,127 | | | | 0.4 | |
| | | | | | | | | | | | | | | |
| |
| 276,205 | | | | | | Other Securities | | | 1,094,917 | | | | 0.2 | |
| | | | | | | | | | | | | | | |
| |
| 305,200 | | | | | | Telekomunikasi Indonesia Tbk PT ADR | | | 10,315,760 | | | | 1.6 | |
| 4,799,500 | | | | | | Other Securities | | | 1,246,878 | | | | 0.2 | |
| | | | | | | | | | 11,562,638 | | | | 1.8 | |
| | | | | | | | | | | | | | | |
| |
| 1,192,000 | | | | | | ERG S.p.A. | | | 14,665,731 | | | | 2.3 | |
| 91,000 | | | | | | Other Securities | | | 623,729 | | | | 0.1 | |
| | | | | | | | | | 15,289,460 | | | | 2.4 | |
| |
COMMON STOCK: (continued) |
| |
| 2,876,550 | | | | | | Chuo Mitsui Trust Holdings, Inc. | | $ | 9,843,912 | | | | 1.5 | |
| 2,480,000 | | | | | | Daiwa Securities Group, Inc. | | | 8,677,451 | | | | 1.4 | |
| 267,700 | | | | | | East Japan Railway Co. | | | 16,230,207 | | | | 2.5 | |
| 308,000 | | | | | | Futaba Corp. | | | 5,809,336 | | | | 0.9 | |
| 1,457,000 | | | | | | Japan Steel Works Ltd. | | | 9,984,843 | | | | 1.6 | |
| 716,000 | | | | | | Kamigumi Co., Ltd. | | | 6,252,049 | | | | 1.0 | |
| 131,000 | | | | | | Kurita Water Industries Ltd. | | | 3,607,367 | | | | 0.6 | |
| 648,600 | | | | | | Mitsui & Co., Ltd. | | | 9,466,009 | | | | 1.5 | |
| 439,000 | | | | | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 8,598,411 | | | | 1.3 | |
| 318,300 | | | | | | Nippon Telegraph & Telephone Corp. | | | 16,327,465 | | | | 2.5 | |
| 67,400 | | | | | | Shin-Etsu Chemical Co., Ltd. | | | 3,461,313 | | | | 0.5 | |
| 806,000 | | | | | | Toppan Printing Co., Ltd. | | | 6,266,883 | | | | 1.0 | |
| 3,345 | | | | | | TV Asahi Corp. | | | 5,269,779 | | | | 0.8 | |
| 91,800 | | | | | | West Japan Railway Co. | | | 3,889,895 | | | | 0.6 | |
| 1,546,100 | | | | | | Other Securities | | | 12,133,902 | | | | 1.9 | |
| | | | | | | | | | 125,818,822 | | | | 19.6 | |
| | | | | | | | | | | | | | | |
| |
| 310,206 | | | | # | | Solidere GDR | | | 4,635,989 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| |
| 383,300 | | | | L | | Statoil ASA ADR | | | 9,747,319 | | | | 1.5 | |
| 6,575,000 | | | | | | Other Securities | | | 2,930,429 | | | | 0.5 | |
| | | | | | | | | | 12,677,748 | | | | 2.0 | |
| | | | | | | | | | | | | | | |
| |
| 1,270,000 | | | | | | Gazprom OAO ADR | | | 14,820,900 | | | | 2.3 | |
| 3,850,000 | | | | L | | Federal Hydrogenerating Co. JSC ADR | | | 14,450,263 | | | | 2.2 | |
| 116,819,700 | | | | | | Other Securities | | | 1,670,423 | | | | 0.3 | |
| | | | | | | | | | 30,941,586 | | | | 4.8 | |
| | | | | | | | | | | | | | | |
| |
| 43,750 | | | | | | Other Securities | | | 3,263,955 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| |
| 211,200 | | | | | | AngloGold Ashanti Ltd ADR | | | 9,548,352 | | | | 1.5 | |
| 603,800 | | | | | | Gold Fields Ltd. | | | 10,466,498 | | | | 1.6 | |
| 8,153,546 | | | | | | Other Securities | | | 4,878,568 | | | | 0.8 | |
| | | | | | | | | | 24,893,418 | | | | 3.9 | |
| | | | | | | | | | | | | | | |
| |
| 659,500 | | | | | | Korea Electric Power Corp. ADR | | | 7,274,285 | | | | 1.1 | |
| 363,800 | | | | | | KT Corp. ADR | | | 6,068,184 | | | | 1.0 | |
| 595,400 | | | | | | SK Telecom Co., Ltd. ADR | | | 8,805,966 | | | | 1.4 | |
| | | | | | | | | | 22,148,435 | | | | 3.5 | |
See Accompanying Notes to Financial Statements
149
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL VALUE CHOICE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 163,750 | | | | | | Actelion Ltd. — Reg | | $ | 6,065,794 | | | | 0.9 | |
| | | | | | | | | | | | | | | |
| |
| 306,800 | | | | | | Other Securities | | | 1,554,759 | | | | 0.2 | |
| | | | | | | | | | | | | | | |
| |
| 1,105,000 | | | | @ | | Turkcell Iletisim Hizmet AS ADR | | | 13,613,600 | | | | 2.1 | |
| | | | | | | | | | | | | | | |
| |
| 2,733,830 | | | | @ | | Polyus Gold International Ltd. GDR | | | 8,975,164 | | | | 1.4 | |
| 392,400 | | | | | | Stolt-Nielsen Ltd. | | | 7,760,103 | | | | 1.2 | |
| | | | | | | | | | 16,735,267 | | | | 2.6 | |
| | | | | | | | | | | | | | | |
| |
| 648,900 | | | | @ | | American International Group, Inc. | | | 16,021,341 | | | | 2.5 | |
| 490,000 | | | | | | Best Buy Co., Inc. | | | 12,852,700 | | | | 2.0 | |
| 575,000 | | | | | | Eli Lilly & Co. | | | 21,367,000 | | | | 3.4 | |
| 84,000 | | | | | | Lockheed Martin Corp. | | | 6,375,600 | | | | 1.0 | |
| 191,000 | | | | | | Merck & Co., Inc. | | | 6,589,500 | | | | 1.1 | |
| 463,500 | | | | | | Microsoft Corp. | | | 12,343,005 | | | | 1.9 | |
| 442,384 | | | | | | Newmont Mining Corp. | | | 29,564,523 | | | | 4.6 | |
| 880,200 | | | | | | Old Republic International Corp. | | | 7,780,968 | | | | 1.2 | |
| 315,350 | | | | | | Wal-Mart Stores, Inc. | | | 17,886,652 | | | | 2.8 | |
| 338,800 | | | | @ | | Western Digital Corp. | | | 9,025,632 | | | | 1.4 | |
| 951,215 | | | | | | Other Securities | | | 20,026,055 | | | | 3.1 | |
| | | | | | | | | | 159,832,976 | | | | 25.0 | |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $634,590,096) | | | 618,698,787 | | | | 96.6 | |
| |
PREFERRED STOCK: 0.4% |
| |
| 105,840 | | | | | | Other Securities | | | 2,440,184 | | | | 0.4 | |
| | | | | | | Total Preferred Stock | | | | | | | | |
| | | | | | | (Cost $3,474,992) | | | 2,440,184 | | | | 0.4 | |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $638,065,088) | | | 621,138,971 | | | | 97.0 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 5.0% |
| Securities Lending Collateralcc(1): 2.7%
|
| 4,052,266 | | | | | | Barclays Bank PLC, Repurchase Agreement dated 10/31/11, 0.10%, due 11/01/11 (Principal Amount $4,052,266, collateralized by various U.S. Government Agency Obligations, 0.000%–0.375%, Market Value plus accrued interest $4,133,316, due 11/21/11–10/30/13) | | | 4,052,266 | | | | 0.6 | |
| |
SHORT-TERM INVESTMENTS: (continued) |
| Securities Lending Collateralcc(1): (continued)
|
| 4,052,266 | | | | | | BNP Paribas Bank, Repurchase Agreement dated 10/31/11, 0.08%, due 11/01/11 (Principal Amount $4,052,266 collateralized by various U.S. Government Securities,0.000%–7.250%, Market Value plus accrued interest $4,133,313, due 11/30/11–11/15/40) | | $ | 4,052,266 | | | | 0.6 | |
| 853,111 | | | | | | JPMorgan Chase & Co., Repurchase Agreement dated 10/31/11, 0.07%, due 11/01/11 (Principal Amount $853,111 collateralized by various U.S. Government Securities,1.250%–2.500%, Market Value plus accrued interest $870,181, due 07/15/13–07/15/20) | | | 853,111 | | | | 0.2 | |
| 4,052,266 | | | | | | Merrill Lynch & Co., Inc., Repurchase Agreement dated 10/31/11, 0.10%, due 11/01/11 (Principal Amount $4,052,266, collateralized by various U.S. Government Agency Obligations, 0.500%, Market Value plus accrued interest $4,133,331, due 10/30/12–02/15/13) | | | 4,052,266 | | | | 0.7 | |
| 4,052,266 | | | | | | Morgan Stanley, Repurchase Agreement dated 10/31/11, 0.15%, due 11/01/11 (Principal Amount $4,052,266, collateralized by various U.S. Government Agency Obligations, 4.000%–4.500%, Market Value plus accrued interest $4,133,313, due 03//01/41–10/01/41) | | | 4,052,266 | | | | 0.6 | |
| | | | | | | | | | 17,062,175 | | | | 2.7 | |
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
| 14,896,361 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class (Cost $14,896,361) | | | 14,896,361 | | | | 2.3 | |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $31,958,536) | | | 31,958,536 | | | | 5.0 | |
| | | | | | | Total Investments in Securities
(Cost $670,023,624) | | $ | 653,097,507 | | | | 102.0 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (12,932,482 | ) | | | (2.0 | ) |
| | | | | | | Net Assets | | $ | 640,165,025 | | | | 100.0 | |
See Accompanying Notes to Financial Statements
150
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL VALUE CHOICE FUND
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | 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. |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| GDR | | Global Depository 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | | Cost for federal income tax purposes is $675,062,304. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 39,804,097 | |
| Gross Unrealized Depreciation | | | | | (61,768,894 | ) |
| Net Unrealized depreciation | | | | $ | (21,964,797 | ) |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 5.3 | % |
| Consumer Staples | | | | | 4.3 | |
| Energy | | | | | 11.6 | |
| Financials | | | | | 11.9 | |
| Health Care | | | | | 6.8 | |
| Industrials | | | | | 16.1 | |
| Information Technology | | | | | 5.9 | |
| Materials | | | | | 17.2 | |
| Telecommunications | | | | | 9.1 | |
| Utilities | | | | | 8.8 | |
| Short-Term Investments | | | | | 5.0 | |
| Liabilities in Excess of Other Assets | | | | | (2.0 | ) |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 17,216,363 | | | $ | — | | | $ | 17,216,363 | |
| Brazil | | | | | 14,633,281 | | | | — | | | | — | | | | 14,633,281 | |
| Canada | | | | | 66,494,664 | | | | — | | | | — | | | | 66,494,664 | |
| China | | | | | — | | | | — | | | | 554,471 | | | | 554,471 | |
| Egypt | | | | | — | | | | 10,920,388 | | | | — | | | | 10,920,388 | |
| Finland | | | | | 8,829,760 | | | | — | | | | — | | | | 8,829,760 | |
| France | | | | | — | | | | 39,155,125 | | | | — | | | | 39,155,125 | |
| Greece | | | | | — | | | | 3,732,743 | | | | — | | | | 3,732,743 | |
| Hong Kong | | | | | — | | | | 4,271,501 | | | | — | | | | 4,271,501 | |
| Hungary | | | | | — | | | | 2,761,127 | | | | — | | | | 2,761,127 | |
| India | | | | | — | | | | 1,094,917 | | | | — | | | | 1,094,917 | |
| Indonesia | | | | | 10,315,760 | | | | 1,246,878 | | | | — | | | | 11,562,638 | |
| Italy | | | | | — | | | | 15,289,460 | | | | — | | | | 15,289,460 | |
| Japan | | | | | — | | | | 125,818,822 | | | | — | | | | 125,818,822 | |
| Lebanon | | | | | — | | | | 4,635,989 | | | | — | | | | 4,635,989 | |
| Norway | | | | | 9,747,319 | | | | 2,930,429 | | | | — | | | | 12,677,748 | |
| Russia | | | | | 15,659,541 | | | | 15,282,045 | | | | — | | | | 30,941,586 | |
| Slovenia | | | | | — | | | | 3,263,955 | | | | — | | | | 3,263,955 | |
| South Africa | | | | | 11,102,576 | | | | 13,790,842 | | | | — | | | | 24,893,418 | |
| South Korea | | | | | 22,148,435 | | | | — | | | | — | | | | 22,148,435 | |
| Switzerland | | | | | — | | | | 6,065,794 | | | | — | | | | 6,065,794 | |
| Thailand | | | | | — | | | | 1,554,759 | | | | — | | | | 1,554,759 | |
| Turkey | | | | | 13,613,600 | | | | — | | | | — | | | | 13,613,600 | |
| United Kingdom | | | | | 8,975,164 | | | | 7,760,103 | | | | — | | | | 16,735,267 | |
| United States | | | | | 159,832,976 | | | | — | | | | — | | | | 159,832,976 | |
| Total Common Stock | | | | | 341,353,076 | | | | 276,791,240 | | | | 554,471 | | | | 618,698,787 | |
| Preferred Stock | | | | | 2,440,184 | | | | — | | | | — | | | | 2,440,184 | |
| Short-Term Investments | | | | | 14,896,361 | | | | 17,062,175 | | | | — | | | | 31,958,536 | |
| Total Investments, at value | | | | $ | 358,689,621 | | | $ | 293,853,415 | | | $ | 554,471 | | | $ | 653,097,507 | |
See Accompanying Notes to Financial Statements
151
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GLOBAL VALUE CHOICE FUND
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | 230,218 | | | $ | — | | | $ | (230,218 | ) | | $ | — | | | $ | (57,554 | ) | | $ | 57,554 | | | $ | 554,471 | | | $ | — | | | $ | 554,471 | |
| Total Investments, at value | | | | $ | 230,218 | | | $ | — | | | $ | (230,218 | ) | | $ | — | | | $ | (57,554 | ) | | $ | 57,554 | | | $ | 554,471 | | | $ | — | | | $ | 554,471 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
152
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING GREATER CHINA FUND
Shares
|
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|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 98.4% |
| |
| 11,600 | | | | | | Other Securities | | $ | 34,745 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| |
| 96,000 | | | | | | Anhui Conch Cement Co., Ltd. | | | 349,081 | | | | 1.0 | |
| 1,399,400 | | | | | | Bank of China Ltd. | | | 498,059 | | | | 1.5 | |
| 334,000 | | | | | | China Coal Energy Co. — Class H | | | 416,007 | | | | 1.2 | |
| 915,000 | | | | | | China Communications Construction Co., Ltd. | | | 690,145 | | | | 2.0 | |
| 680,000 | | | | | | China Communications Services Corp., Ltd. | | | 313,606 | | | | 0.9 | |
| 1,535,960 | | | | | | China Construction Bank | | | 1,128,524 | | | | 3.3 | |
| 204,000 | | | | | | China Life Insurance Co., Ltd. | | | 527,421 | | | | 1.6 | |
| 461,000 | | | | | | China Minsheng Banking Corp. Ltd | | | 375,539 | | | | 1.1 | |
| 179,500 | | | | | | China Mobile Ltd. | | | 1,706,029 | | | | 5.0 | |
| 150,000 | | | | | | China Overseas Land & Investment Ltd. | | | 277,559 | | | | 0.8 | |
| 712,000 | | | | | | China Petroleum & Chemical Corp. | | | 673,360 | | | | 2.0 | |
| 1,580,000 | | | | | | China Power International Development Ltd. | | | 334,327 | | | | 1.0 | |
| 88,000 | | | | | | China Resources Enterprise | | | 321,380 | | | | 1.0 | |
| 101,000 | | | | | | China Shenhua Energy Co., Ltd. | | | 462,054 | | | | 1.4 | |
| 416,000 | | | | | | China Telecom Corp., Ltd. | | | 256,841 | | | | 0.8 | |
| 138,500 | | | | #, @ | | CITIC Securities Co. Ltd. | | | 275,973 | | | | 0.8 | |
| 598,000 | | | | | | CNOOC Ltd. | | | 1,130,435 | | | | 3.3 | |
| 2,129,140 | | | | | | Industrial and Commercial Bank of China Ltd. | | | 1,329,570 | | | | 3.9 | |
| 570,000 | | | | | | PetroChina Co., Ltd. | | | 739,970 | | | | 2.2 | |
| 47,000 | | | | | | Ping An Insurance Group Co. of China Ltd. | | | 348,571 | | | | 1.0 | |
| 534,000 | | | | | | China National Materials Co. Ltd. | | | 268,851 | | | | 0.8 | |
| 26,100 | | | | | | Tencent Holdings Ltd. | | | 603,630 | | | | 1.8 | |
| 865,000 | | | | | | Zijin Mining Group Co., Ltd. | | | 368,170 | | | | 1.1 | |
| 5,121,500 | | | | | | Other Securities | | | 3,046,420 | | | | 9.0 | |
| | | | | | | | | | 16,441,522 | | | | 48.5 | |
| | | | | | | | | | | | | | | |
| |
| 151,400 | | | | | | AIA Group Ltd. | | | 462,942 | | | | 1.4 | |
| 67,000 | | | | | | Cheung Kong Holdings Ltd. | | | 830,527 | | | | 2.4 | |
| 384,000 | | | | | | Chow Sang Sang Holdings International Ltd. | | | 1,184,341 | | | | 3.5 | |
| 49,000 | | | | | | CLP Holdings Ltd. | | | 436,498 | | | | 1.3 | |
| 323,280 | | | | | | Dah Sing Banking Group Ltd. | | | 314,519 | | | | 0.9 | |
| |
COMMON STOCK: (continued) |
| |
| 33,100 | | | | | | Hong Kong Exchanges and Clearing Ltd. | | $ | 561,108 | | | | 1.7 | |
| 54,000 | | | | | | Hutchison Whampoa Ltd. | | | 493,908 | | | | 1.5 | |
| 120,000 | | | | | | Kerry Properties Ltd. | | | 440,392 | | | | 1.3 | |
| 150,000 | | | | | | Li & Fung Ltd. | | | 289,079 | | | | 0.9 | |
| 888,000 | | | | | | Oriental Watch Holdings | | | 512,342 | | | | 1.5 | |
| 202,000 | | | | | | Sino Land Co. | | | 319,309 | | | | 0.9 | |
| 38,000 | | | | | | Sun Hung Kai Properties Ltd. | | | 523,214 | | | | 1.5 | |
| 126,500 | | | | | | Wharf Holdings Ltd. | | | 672,885 | | | | 2.0 | |
| 2,624,000 | | | | | | Other Securities | | | 1,293,782 | | | | 3.8 | |
| | | | | | | | | | 8,334,846 | | | | 24.6 | |
| | | | | | | | | | | | | | | |
| |
| 395,522 | | | | | | China Life Insurance Co., Ltd. | | | 438,377 | | | | 1.3 | |
| 95,000 | | | | | | Chunghwa Telecom Co., Ltd. | | | 317,835 | | | | 0.9 | |
| 476,745 | | | | | | E.Sun Financial Holding Co., Ltd. | | | 237,598 | | | | 0.7 | |
| 85,000 | | | | | | Formosa Chemicals & Fibre Co. | | | 245,996 | | | | 0.7 | |
| 98,000 | | | | | | Formosa Plastics Corp. | | | 288,227 | | | | 0.8 | |
| 79,000 | | | | | | Foxconn Technology Co., Ltd. | | | 275,344 | | | | 0.8 | |
| 415,256 | | | | | | Hon Hai Precision Industry Co., Ltd. | | | 1,138,373 | | | | 3.4 | |
| 19,492 | | | | | | HTC Corp. | | | 438,055 | | | | 1.3 | |
| 28,000 | | | | | | MediaTek, Inc. | | | 293,839 | | | | 0.9 | |
| 64,000 | | | | | | MStar Semiconductor, Inc. | | | 370,888 | | | | 1.1 | |
| 111,000 | | | | | | Synnex Technology International Corp. | | | 272,092 | | | | 0.8 | |
| 166,000 | | | | | | Taiwan Fertilizer Co., Ltd. | | | 427,856 | | | | 1.3 | |
| 689,000 | | | | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 1,679,008 | | | | 4.9 | |
| 454,159 | | | | | | Yuanta Financial Holding Co., Ltd. | | | 258,892 | | | | 0.8 | |
| 2,024,420 | | | | | | Other Securities | | | 1,858,875 | | | | 5.5 | |
| | | | | | | | | | 8,541,255 | | | | 25.2 | |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $31,195,328) | | | 33,352,368 | | | | 98.4 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 536,830 | | | | 1.6 | |
| | | | | | | Net Assets | | $ | 33,889,198 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
See Accompanying Notes to Financial Statements
153
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING GREATER CHINA FUND
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| # | | 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. |
| @ | | Non-income producing security |
| | | Cost for federal income tax purposes is $32,331,362. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 4,200,625 | |
| Gross Unrealized Depreciation | | | | | (3,179,619 | ) |
| Net Unrealized appreciation | | | | $ | 1,021,006 | |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 8.7 | % |
| Consumer Staples | | | | | 1.6 | |
| Energy | | | | | 11.5 | |
| Financials | | | | | 33.0 | |
| Industrials | | | | | 7.2 | |
| Information Technology | | | | | 18.9 | |
| Materials | | | | | 7.3 | |
| Telecommunications | | | | | 7.6 | |
| Utilities | | | | | 2.6 | |
| Assets in Excess of Other Liabilities | | | | | 1.6 | |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Canada | | | | $ | — | | | $ | 34,745 | | | $ | — | | | $ | 34,745 | |
| China | | | | | 275,973 | | | | 16,081,725 | | | | 83,824 | | | | 16,441,522 | |
| Hong Kong | | | | | — | | | | 8,334,846 | | | | — | | | | 8,334,846 | |
| Taiwan | | | | | — | | | | 8,541,255 | | | | — | | | | 8,541,255 | |
| Total Common Stock | | | | | 275,973 | | | | 32,992,571 | | | | 83,824 | | | | 33,352,368 | |
| Total Investments, at value | | | | $ | 275,973 | | | $ | 32,992,571 | | | $ | 83,824 | | | $ | 33,352,368 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 83,824 | | | $ | — | | | $ | 83,824 | |
| Total Investments, at value | | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | ��$ | 83,824 | | | $ | — | | | $ | 83,824 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
154
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INDEX PLUS INTERNATIONAL
EQUITY FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 96.8% |
| |
| 26,963 | | | | | | Australia & New Zealand Banking Group Ltd. | | $ | 609,265 | | | | 0.6 | |
| 28,612 | | | | | | BHP Billiton Ltd. | | | 1,120,002 | | | | 1.2 | |
| 15,485 | | | | | | Commonwealth Bank of Australia | | | 795,463 | | | | 0.8 | |
| 22,485 | | | | | | National Australia Bank Ltd. | | | 600,559 | | | | 0.6 | |
| 6,211 | | | | | | Rio Tinto Ltd. | | | 445,912 | | | | 0.5 | |
| 26,611 | | | | | | Westpac Banking Corp. | | | 617,539 | | | | 0.7 | |
| 591,919 | | | | | | Other Securities | | | 3,875,239 | | | | 4.1 | |
| | | | | | | | | | 8,063,979 | | | | 8.5 | |
| | | | | | | | | | | | | | | |
| |
| 14,696 | | | | | | Other Securities | | | 487,724 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| |
| 22,834 | | | | | | Other Securities | | | 367,825 | | | | 0.4 | |
| | | | | | | | | | | | | | | |
| |
| 65,500 | | | | | | Other Securities | | | 155,757 | | | | 0.2 | |
| | | | | | | | | | | | | | | |
| |
| 4,864 | | | | | | Novo-Nordisk A/S | | | 516,394 | | | | 0.5 | |
| 2,248 | | | | | | Other Securities | | | 240,326 | | | | 0.3 | |
| | | | | | | | | | 756,720 | | | | 0.8 | |
| | | | | | | | | | | | | | | |
| |
| 61,322 | | | | | | Other Securities | | | 607,982 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| |
| 10,761 | | | | | | BNP Paribas | | | 480,531 | | | | 0.5 | |
| 9,722 | | | | | | Cie de Saint-Gobain | | | 449,326 | | | | 0.5 | |
| 9,460 | | | | | | Groupe Danone | | | 655,795 | | | | 0.7 | |
| 9,583 | | | | | | Sanofi-Aventis | | | 685,559 | | | | 0.7 | |
| 25,538 | | | | | | Total S.A. | | | 1,332,502 | | | | 1.4 | |
| 180,668 | | | | | | Other Securities | | | 5,822,355 | | | | 6.2 | |
| | | | | | | | | | 9,426,068 | | | | 10.0 | |
| | | | | | | | | | | | | | | |
| |
| 12,437 | | | | | | BASF AG | | | 907,850 | | | | 1.0 | |
| 6,651 | | | | | | Bayerische Motoren Werke AG | | | 540,288 | | | | 0.6 | |
| 4,021 | | | | | | MAN AG | | | 354,291 | | | | 0.4 | |
| 3,248 | | | | | | MAN SE | | | 423,988 | | | | 0.4 | |
| 7,172 | | | | | | SAP AG | | | 433,676 | | | | 0.5 | |
| 9,502 | | | | | | Siemens AG | | | 996,008 | | | | 1.0 | |
| 495 | | | | | | Volkswagen AG | | | 77,411 | | | | 0.1 | |
| 116,440 | | | | | | Other Securities | | | 4,024,429 | | | | 4.2 | |
| | | | | | | | | | 7,757,941 | | | | 8.2 | |
| | | | | | | | | | | | | | | |
| |
| 69,357 | | | | | | Other Securities | | | 481,129 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| |
| 750,800 | | | | | | Other Securities | | | 2,436,173 | | | | 2.6 | |
| | | | | | | | | | | | | | | |
| |
| 4,092 | | | | | | Other Securities | | | 83,522 | | | | 0.1 | |
| |
COMMON STOCK: (continued) |
| |
| 4,811 | | | | | | Other Securities | | $ | 87,044 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| |
| 36,654 | | | | | | Other Securities | | | 638,487 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| |
| 130,598 | | | | | | Enel S.p.A. | | | 616,174 | | | | 0.7 | |
| 34,947 | | | | | | ENI S.p.A. | | | 772,466 | | | | 0.8 | |
| 232,979 | | | | | | Telecom Italia S.p.A. | | | 289,890 | | | | 0.3 | |
| 194,688 | | | | | | Telecom Italia S.p.A. RNC | | | 204,317 | | | | 0.2 | |
| 301,954 | | | | | | Other Securities | | | 885,565 | | | | 0.9 | |
| | | | | | | | | | 2,768,412 | | | | 2.9 | |
| | | | | | | | | | | | | | | |
| |
| 13,300 | | | | | | Canon, Inc. | | | 603,791 | | | | 0.6 | |
| 25,300 | | | | | | Mitsubishi Corp. | | | 520,344 | | | | 0.6 | |
| 133,097 | | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 578,431 | | | | 0.6 | |
| 33,892 | | | | | | Mitsui & Co., Ltd. | | | 494,638 | | | | 0.5 | |
| 17,100 | | | | | | Seven & I Holdings Co., Ltd. | | | 456,326 | | | | 0.5 | |
| 22,600 | | | | | | Sony Corp. | | | 471,513 | | | | 0.5 | |
| 29,590 | | | | | | Toyota Motor Corp. | | | 982,411 | | | | 1.0 | |
| 1,337,021 | | | | | | Other Securities | | | 14,288,950 | | | | 15.1 | |
| | | | | | | | | | 18,396,404 | | | | 19.4 | |
| | | | | | | | | | | | | | | |
| |
| 4,111 | | | | | | Other Securities | | | 72,322 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| |
| 36,000 | | | | | | Other Securities | | | 108,187 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| |
| 27,330 | | | | | | Royal Dutch Shell PLC — Class A | | | 968,156 | | | | 1.0 | |
| 29,115 | | | | | | Royal Dutch Shell PLC — Class B | | | 1,044,591 | | | | 1.1 | |
| 15,194 | | | | | | Unilever NV | | | 524,552 | | | | 0.5 | |
| 56,179 | | | | | | Other Securities | | | 1,288,083 | | | | 1.4 | |
| | | | | | | | | | 3,825,382 | | | | 4.0 | |
| | | | | | | | | | | | | | | |
| |
| 134,135 | | | | | | Other Securities | | | 273,857 | | | | 0.3 | |
| | | | | | | | | | | | | | | |
| |
| 62,418 | | | | | | Other Securities | | | 1,045,739 | | | | 1.1 | |
| | | | | | | | | | | | | | | |
| |
| 408,881 | | | | | | Other Securities | | | 550,360 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| |
| 320,000 | | | | | | Other Securities | | | 1,484,320 | | | | 1.6 | |
| | | | | | | | | | | | | | | |
| |
| 91,400 | | | | | | Banco Santander Central Hispano S.A. | | | 773,597 | | | | 0.8 | |
| 74,864 | | | | | | Iberdrola S.A. | | | 541,639 | | | | 0.6 | |
See Accompanying Notes to Financial Statements
155
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INDEX PLUS INTERNATIONAL
EQUITY FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 4,859 | | | | | | Inditex S.A. | | $ | 441,098 | | | | 0.5 | |
| 18,636 | | | | | | Repsol YPF S.A. | | | 560,938 | | | | 0.6 | |
| 59,198 | | | | | | Telefonica S.A. | | | 1,258,053 | | | | 1.3 | |
| 125,379 | | | | | | Other Securities | | | 1,274,008 | | | | 1.3 | |
| | | | | | | | | | 4,849,333 | | | | 5.1 | |
| | | | | | | | | | | | | | | |
| |
| 23,497 | | | | | | Atlas Copco AB — Class A | | | 510,813 | | | | 0.5 | |
| 149,688 | | | | | | Other Securities | | | 2,082,578 | | | | 2.2 | |
| | | | | | | | | | 2,593,391 | | | | 2.7 | |
| | | | | | | | | | | | | | | |
| |
| 23,291 | | | | | | Nestle S.A. | | | 1,347,098 | | | | 1.4 | |
| 25,180 | | | | | | Novartis AG | | | 1,418,522 | | | | 1.5 | |
| 7,716 | | | | | | Roche Holding AG — Genusschein | | | 1,265,960 | | | | 1.3 | |
| 553 | | | | # | | Synthes, Inc. | | | 92,478 | | | | 0.1 | |
| 54,059 | | | | | | Other Securities | | | 1,694,660 | | | | 1.8 | |
| | | | | | | | | | 5,818,718 | | | | 6.1 | |
| | | | | | | | | | | | | | | |
| |
| 19,365 | | | | | | Anglo American PLC | | | 709,929 | | | | 0.7 | |
| 18,009 | | | | | | AstraZeneca PLC | | | 864,596 | | | | 0.9 | |
| 20,364 | | | | | | BHP Billiton PLC | | | 641,251 | | | | 0.7 | |
| 213,788 | | | | | | BP PLC | | | 1,573,229 | | | | 1.7 | |
| 23,344 | | | | | | British American Tobacco PLC | | | 1,070,329 | | | | 1.1 | |
| 38,592 | | | | | | Diageo PLC | | | 798,690 | | | | 0.8 | |
| 49,534 | | | | | | GlaxoSmithKline PLC | | | 1,111,658 | | | | 1.2 | |
| 136,806 | | | | | | HSBC Holdings PLC | | | 1,193,673 | | | | 1.3 | |
| 18,622 | | | | | | Imperial Tobacco Group PLC | | | 678,341 | | | | 0.7 | |
| 10,256 | | | | | | Rio Tinto PLC | | | 554,838 | | | | 0.6 | |
| 368,875 | | | | | | Vodafone Group PLC | | | 1,024,249 | | | | 1.1 | |
| 1,536,729 | | | | | | Other Securities | | | 8,389,455 | | | | 8.8 | |
| | | | | | | | | | 18,610,238 | | | | 19.6 | |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $85,480,079) | | | 91,747,014 | | | | 96.8 | |
| |
PREFERRED STOCK: 0.6% |
| |
| 2,991 | | | | | | Volkswagen AG | | | 520,882 | | | | 0.6 | |
| 643 | | | | | | Other Securities | | | 37,458 | | | | 0.0 | |
| | | | | | | Total Preferred Stock | | | | | | | | |
| | | | | | | (Cost $514,560) | | | 558,340 | | | | 0.6 | |
| |
RIGHTS: 0.0% |
| |
| 24,500 | | | | | | Other Securities | | | 8,359 | | | | 0.0 | |
| | | | | | | Total Rights | | | | | | | | |
| | | | | | | (Cost $—) | | | 8,359 | | | | 0.0 | |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $85,994,639) | | | 92,313,713 | | | | 97.4 | |
| |
SHORT-TERM INVESTMENTS: 3.7% |
| |
| 3,496,000 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class (Cost $3,496,000) | | $ | 3,496,000 | | | | 3.7 | |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $3,496,000) | | | 3,496,000 | | | | 3.7 | |
| | | | | | | Total Investments in Securities
(Cost $89,490,639) | | $ | 95,809,713 | | | | 101.1 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (1,080,771 | ) | | | (1.1 | ) |
| | | | | | | Net Assets | | $ | 94,728,942 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| # | | 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. |
| | | Cost for federal income tax purposes is $93,914,420. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 10,111,620 | |
| Gross Unrealized Depreciation | | | | | (8,216,327 | ) |
| Net Unrealized appreciation | | | | $ | 1,895,293 | |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 10.0 | % |
| Consumer Staples | | | | | 11.6 | |
| Energy | | | | | 9.1 | |
| Financials | | | | | 21.5 | |
| Health Care | | | | | 9.2 | |
| Industrials | | | | | 11.5 | |
| Information Technology | | | | | 4.4 | |
| Materials | | | | | 9.3 | |
| Telecommunications | | | | | 6.5 | |
| Utilities | | | | | 4.3 | |
| Short-Term Investments | | | | | 3.7 | |
| Liabilities in Excess of Other Assets | | | | | (1.1 | ) |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
156
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INDEX PLUS INTERNATIONAL
EQUITY FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | 92,033 | | | $ | 7,971,946 | | | $ | — | | | $ | 8,063,979 | |
| Austria | | | | | — | | | | 487,724 | | | | — | | | | 487,724 | |
| Belgium | | | | | 20 | | | | 367,805 | | | | — | | | | 367,825 | |
| China | | | | | — | | | | 155,757 | | | | — | | | | 155,757 | |
| Denmark | | | | | — | | | | 756,720 | | | | — | | | | 756,720 | |
| Finland | | | | | — | | | | 607,982 | | | | — | | | | 607,982 | |
| France | | | | | — | | | | 9,426,068 | | | | — | | | | 9,426,068 | |
| Germany | | | | | 423,988 | | | | 7,333,953 | | | | — | | | | 7,757,941 | |
| Greece | | | | | — | | | | 481,129 | | | | — | | | | 481,129 | |
| Hong Kong | | | | | — | | | | 2,436,173 | | | | — | | | | 2,436,173 | |
| India | | | | | — | | | | 83,522 | | | | — | | | | 83,522 | |
| Ireland | | | | | — | | | | 87,044 | | | | — | | | | 87,044 | |
| Israel | | | | | — | | | | 638,487 | | | | — | | | | 638,487 | |
| Italy | | | | | — | | | | 2,768,412 | | | | — | | | | 2,768,412 | |
| Japan | | | | | — | | | | 18,396,404 | | | | — | | | | 18,396,404 | |
| Luxembourg | | | | | — | | | | 72,322 | | | | — | | | | 72,322 | |
| Macau | | | | | — | | | | 108,187 | | | | — | | | | 108,187 | |
| Netherlands | | | | | 220,658 | | | | 3,604,724 | | | | — | | | | 3,825,382 | |
| New Zealand | | | | | — | | | | 273,857 | | | | — | | | | 273,857 | |
| Norway | | | | | — | | | | 1,045,739 | | | | — | | | | 1,045,739 | |
| Portugal | | | | | — | | | | 550,360 | | | | — | | | | 550,360 | |
| Singapore | | | | | 32,830 | | | | 1,451,490 | | | | — | | | | 1,484,320 | |
| Spain | | | | | — | | | | 4,849,333 | | | | — | | | | 4,849,333 | |
| Sweden | | | | | — | | | | 2,593,391 | | | | — | | | | 2,593,391 | |
| Switzerland | | | | | — | | | | 5,818,718 | | | | — | | | | 5,818,718 | |
| United Kingdom | | | | | — | | | | 18,610,238 | | | | — | | | | 18,610,238 | |
| Total Common Stock | | | | | 769,529 | | | | 90,977,485 | | | | — | | | | 91,747,014 | |
| Preferred Stock | | | | | — | | | | 558,340 | | | | — | | | | 558,340 | |
| Rights | | | | | — | | | | 8,359 | | | | — | | | | 8,359 | |
| Short-Term Investments | | | | | 3,496,000 | | | | — | | | | — | | | | 3,496,000 | |
| Total Investments, at value | | | | $ | 4,265,529 | | | $ | 91,544,184 | | | $ | — | | | $ | 95,809,713 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Futures | | | | | 208,289 | | | | — | | | | — | | | | 208,289 | |
| Forward Foreign Currency Contracts | | | | | — | | | | 48,298 | | | | — | | | | 48,298 | |
| Total Assets | | | | $ | 4,473,818 | | | $ | 91,592,482 | | | $ | — | | | $ | 96,066,300 | |
Liabilities Table | | | | | | | | | | | | | | | | | �� | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | $ | — | | | $ | (102,069 | ) | | $ | — | | | $ | (102,069 | ) |
| Total Liabilities | | | | $ | — | | | $ | (102,069 | ) | | $ | — | | | $ | (102,069 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
157
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INDEX PLUS INTERNATIONAL
EQUITY FUND
At October 31, 2011, the following forward foreign currency contracts were outstanding for the ING Index Plus International Equity Fund:
Counterparty
| | | | Currency
| | Contract Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| Credit Suisse First Boston | | | | Swiss Franc | | 398,734 | | Buy | | 11/10/11 | | $ | 531,589 | | | $ | 454,309 | | | $ | (77,280 | ) |
| JPMorgan Chase & Co. | | | | Japanese Yen | | 90,595,654 | | Buy | | 11/10/11 | | | 1,183,807 | | | | 1,159,018 | | | | (24,789 | ) |
| | | | | | | | | | | | | | | | | | | | | $ | (102,069 | ) |
| JPMorgan Chase & Co. | | | | EU Euro | | 1,267,353 | | Sell | | 11/10/11 | | $ | 1,801,764 | | | $ | 1,753,466 | | | $ | 48,298 | |
| | | | | | | | | | | | | | | | | | | | | $ | 48,298 | |
ING Index Plus International Equity Fund Open Futures Contracts on October 31, 2011:
Contract Description
| | | | Number
of Contracts
| | Expiration Date
| | Notional Value
| | Unrealized
Appreciation/
(Depreciation)
|
|---|
Long Contracts | | | | | | | | | | | | | | | | | | |
| MSCI EAFE Mini Index | | | | | 36 | | | | 12/16/11 | | | $ | 2,665,620 | | | $ | 208,289 | |
| | | | | | | | | | | | | $ | 2,665,620 | | | $ | 208,289 | |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2011 was as follows:
Derivatives not accounted for as
hedging instruments
| | | | Location on Statement
of Assets and Liabilities
| | Fair Value
|
|---|
Asset Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized appreciation on forward foreign currency contracts | | $ | 48,298 | |
| Equity contracts | | | | Net Assets — Unrealized appreciation* | | | 208,289 | |
Total Asset Derivatives | | | | | | $ | 256,587 | |
Liability Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized depreciation on forward foreign currency contracts | | $ | 102,069 | |
Total Liability Derivatives | | | | | | $ | 102,069 | |
| * | | Includes cumulative appreciation/depreciation of futures contracts as reported in the table following the Summary Portfolio of Investments. |
The effect of derivative instruments on the Fund’s Statement of Operations for the period ended October 31, 2011 was as follows:
| | | | Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
| |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Foreign currency
related transactions*
| | Futures
| | Total
|
|---|
| Equity contracts | | | | $ | — | | | $ | 160,735 | | | $ | 160,735 | |
| Foreign exchange contracts | | | | | 6,876 | | | | — | | | | 6,876 | |
Total | | | | $ | 6,876 | | | $ | 160,735 | | | $ | 167,611 | |
| | | | Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
| |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Foreign currency
related transactions*
| | Futures
| | Total
|
|---|
| Equity contracts | | | | $ | — | | | $ | 209,289 | | | $ | 209,289 | |
| Foreign exchange contracts | | | | | (53,771 | ) | | | — | | | | (53,771 | ) |
Total | | | | $ | (53,771 | ) | | $ | 209,289 | | | $ | 155,518 | |
| * | | Amounts recognized for forward foreign currency contracts are included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign currency related transactions. |
See Accompanying Notes to Financial Statements
158
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL CAPITAL
APPRECIATION FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 99.1% |
| |
| 17,785 | | | | | | BHP Billiton Ltd. | | $ | 696,185 | | | | 1.9 | |
| 18,825 | | | | | | Woodside Petroleum Ltd. | | | 716,798 | | | | 1.9 | |
| 26,866 | | | | | | WorleyParsons Ltd. | | | 779,776 | | | | 2.1 | |
| | | | | | | | | | 2,192,759 | | | | 5.9 | |
| |
| |
| 15,011 | | | | | | Other Securities | | | 320,011 | | | | 0.9 | |
| |
| |
| 9,106 | | | | | | Anheuser-Busch InBev NV | | | 504,984 | | | | 1.4 | |
| |
| |
| 32,622 | | | | | | Cia Energetica de Minas Gerais ADR | | | 555,879 | | | | 1.5 | |
| 28,641 | | | | | | Itau Unibanco Holding SA ADR | | | 547,616 | | | | 1.5 | |
| 46,353 | | | | | | Other Securities | | | 252,169 | | | | 0.7 | |
| | | | | | | | | | 1,355,664 | | | | 3.7 | |
| |
| |
| 10,237 | | | | | | Bank of Nova Scotia | | | 538,569 | | | | 1.5 | |
| 25,088 | | | | | | Cameco Corp. | | | 537,636 | | | | 1.4 | |
| 41,826 | | | | | | Manulife Financial Corp. | | | 552,521 | | | | 1.5 | |
| 20,735 | | | | | | Suncor Energy, Inc. | | | 661,654 | | | | 1.8 | |
| | | | | | | | | | 2,290,380 | | | | 6.2 | |
| |
| |
| 7,635 | | | | L | | Sociedad Quimica y Minera de Chile SA ADR | | | 446,648 | | | | 1.2 | |
| |
| |
| 594,000 | | | | | | Agile Property Holdings Ltd. | | | 535,417 | | | | 1.5 | |
| 641,000 | | | | | | China Longyuan Power Group Corp. | | | 532,304 | | | | 1.4 | |
| 264,000 | | | | | | China Unicom Ltd. | | | 530,803 | | | | 1.4 | |
| 737,000 | | | | | | Industrial and Commercial Bank of China Ltd. | | | 460,229 | | | | 1.2 | |
| 69,000 | | | | | | Ping An Insurance Group Co. of China Ltd. | | | 511,732 | | | | 1.4 | |
| 24,700 | | | | | | Tencent Holdings Ltd. | | | 571,251 | | | | 1.5 | |
| 76,163 | | | | | | Other Securities | | | 503,548 | | | | 1.4 | |
| | | | | | | | | | 3,645,284 | | | | 9.8 | |
| |
| |
| 4,123 | | | | | | Novo-Nordisk A/S | | | 437,724 | | | | 1.2 | |
| |
| |
| 27,589 | | | | | | AXA S.A. | | | 443,740 | | | | 1.2 | |
| 6,031 | | | | | | Groupe Danone | | | 418,086 | | | | 1.1 | |
| | | | | | | | | | 861,826 | | | | 2.3 | |
| |
| |
| 10,508 | | | | | | Adidas AG | | | 740,045 | | | | 2.0 | |
| 7,305 | | | | | | Bayer AG | | | 465,416 | | | | 1.3 | |
| 6,452 | | | | | | Bayerische Motoren Werke AG | | | 524,123 | | | | 1.4 | |
| |
COMMON STOCK: (continued) |
| |
| 8,023 | | | | @ | | Deutsche Boerse AG | | $ | 442,178 | | | | 1.2 | |
| 3,990 | | | | L | | Wacker Chemie AG | | | 401,592 | | | | 1.1 | |
| 25,555 | | | | | | Other Securities | | | 361,831 | | | | 0.9 | |
| | | | | | | | | | 2,935,185 | | | | 7.9 | |
| |
| |
| 342,000 | | | | | | China Resources Land Ltd. | | | 500,584 | | | | 1.3 | |
| 282,850 | | | | | | Li & Fung Ltd. | | | 545,107 | | | | 1.5 | |
| | | | | | | | | | 1,045,691 | | | | 2.8 | |
| |
| |
| 16,228 | | | | | | HDFC Bank Ltd. ADR | | | 513,779 | | | | 1.4 | |
| 38,092 | | | | | | Vedanta Resources PLC | | | 777,496 | | | | 2.1 | |
| | | | | | | | | | 1,291,275 | | | | 3.5 | |
| |
| |
| 10,830 | | | | | | Teva Pharmaceutical Industries Ltd. ADR | | | 442,406 | | | | 1.2 | |
| 8,762 | | | | | | Other Securities | | | 313,329 | | | | 0.8 | |
| | | | | | | | | | 755,735 | | | | 2.0 | |
| |
| |
| 87,700 | | | | @ | | Prada SpA | | | 439,697 | | | | 1.2 | |
| 17,431 | | | | | | Saipem S.p.A. | | | 778,859 | | | | 2.1 | |
| | | | | | | | | | 1,218,556 | | | | 3.3 | |
| |
| |
| 18,100 | | | | | | Canon, Inc. | | | 821,700 | | | | 2.2 | |
| 3,900 | | | | | | Fanuc Ltd. | | | 630,592 | | | | 1.7 | |
| 25,900 | | | | | | Komatsu Ltd. | | | 640,373 | | | | 1.8 | |
| 39,000 | | | | | | NGK Insulators Ltd. | | | 449,590 | | | | 1.2 | |
| 598 | | | | | | Rakuten, Inc. | | | 655,549 | | | | 1.8 | |
| 2,600 | | | | | | SMC Corp. | | | 404,408 | | | | 1.1 | |
| 9,500 | | | | | | Terumo Corp. | | | 482,695 | | | | 1.3 | |
| 23,700 | | | | | | Toyota Motor Corp. | | | 786,859 | | | | 2.1 | |
| | | | | | | | | | 4,871,766 | | | | 13.2 | |
| |
| |
| 17,583 | | | | | | Wal-Mart de Mexico SA de CV ADR | | | 451,883 | | | | 1.2 | |
| |
| |
| 49,293 | | | | | | Telenor ASA | | | 878,043 | | | | 2.4 | |
| |
| |
| 46,430 | | | | | | Gazprom OAO ADR | | | 541,838 | | | | 1.5 | |
| |
| |
| 2,011 | | | | @ | | Samsung Electronics Co., Ltd. GDR | | | 861,911 | | | | 2.3 | |
| |
| |
| 24,084 | | | | @ | | Grifols SA | | | 447,781 | | | | 1.2 | |
| |
| |
| 5,261 | | | | | | Millicom International Cellular S.A. | | | 580,217 | | | | 1.6 | |
| |
See Accompanying Notes to Financial Statements
159
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL CAPITAL
APPRECIATION FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 24,464 | | | | | | ABB Ltd. | | $ | 460,545 | | | | 1.2 | |
| 11,170 | | | | | | Adecco S.A. | | | 536,464 | | | | 1.5 | |
| 9,085 | | | | | | Compagnie Financiere Richemont S.A. | | | 517,524 | | | | 1.4 | |
| 8,589 | | | | | | Holcim Ltd. | | | 543,908 | | | | 1.5 | |
| 7,313 | | | | | | Nestle S.A. | | | 422,967 | | | | 1.1 | |
| 2,493 | | | | | | Roche Holding AG —Genusschein | | | 409,025 | | | | 1.1 | |
| | | | | | | | | | 2,890,433 | | | | 7.8 | |
| |
| |
| 176,200 | | | | | | Hon Hai Precision Industry Co., Ltd. | | | 483,031 | | | | 1.3 | |
| |
| |
| 16,447 | | | | | | Anglo American PLC | | | 602,954 | | | | 1.6 | |
| 50,300 | | | | | | ARM Holdings PLC | | | 471,959 | | | | 1.3 | |
| 29,350 | | | | | | BG Group PLC | | | 636,425 | | | | 1.7 | |
| 37,612 | | | | | | British Sky Broadcasting PLC | | | 424,093 | | | | 1.1 | |
| 11,671 | | | | | | HSBC Holdings PLC ADR | | | 509,556 | | | | 1.4 | |
| 57,149 | | | | | | Prudential PLC | | | 590,298 | | | | 1.6 | |
| 61,322 | | | | | | Rolls-Royce Holdings PLC | | | 690,268 | | | | 1.9 | |
| 17,212 | | | | | | Schroders PLC | | | 393,951 | | | | 1.1 | |
| 18,762 | | | | | | Standard Chartered PLC | | | 437,798 | | | | 1.2 | |
| 95,425 | | | | | | Tesco PLC | | | 615,244 | | | | 1.6 | |
| 4,231,218 | | | | | | Other Securities | | | 6,803 | | | | 0.0 | |
| | | | | | | | | | 5,379,349 | | | | 14.5 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $37,779,852) | | | 36,687,974 | | | | 99.1 | |
| |
EXCHANGE-TRADED FUNDS: 0.9% |
| 6,817 | | | | | | Other Securities | | | 333,930 | | | | 0.9 | |
| |
| | | | | | | Total Exchange-Traded Funds | | | | | | | | |
| | | | | | | (Cost $319,730) | | | 333,930 | | | | 0.9 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $38,099,582) | | | 37,021,904 | | | | 100.0 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 2.1% |
| Securities Lending Collateralcc(1): 2.1% |
| 795,990 | | | | | | Citigroup, Inc., Repurchase Agreement dated 10/31/11, 0.13%, due 11/01/11 (Principal Amount $795,990, collateralized by various U.S. Government and U.S. Government Agency Obligations, 0.000%–6.125%, Market Value plus accrued interest $811,910, due 12/29/11–05/15/37)
(Cost $795,990) | | $ | 795,990 | | | | 2.1 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $795,990) | | | 795,990 | | | | 2.1 | |
| |
| | | | | | | Total Investments in Securities
(Cost $38,895,572) | | $ | 37,817,894 | | | | 102.1 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (790,641 | ) | | | (2.1 | ) |
| | | | | | | Net Assets | | $ | 37,027,253 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| @ | | Non-income producing security |
| ADR | | American Depository 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | Cost for federal income tax purposes is $40,265,931. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 2,888,755 | |
| Gross Unrealized Depreciation | | | | | (5,336,792 | ) |
| Net Unrealized depreciation | | | | $ | (2,448,037 | ) |
See Accompanying Notes to Financial Statements
160
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL CAPITAL
APPRECIATION FUND
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 13.5 | % |
| Consumer Staples | | | | | 7.1 | |
| Energy | | | | | 12.5 | |
| Financials | | | | | 20.3 | |
| Health Care | | | | | 7.3 | |
| Industrials | | | | | 10.4 | |
| Information Technology | | | | | 10.3 | |
| Materials | | | | | 9.4 | |
| Telecommunication Services | | | | | 3.0 | |
| Telecommunications | | | | | 2.4 | |
| Utilities | | | | | 2.9 | |
| Other Long-Term Investments | | | | | 0.9 | |
| Short-Term Investments | | | | | 2.1 | |
| Liabilities in Excess of Other Assets | | | | | (2.1 | ) |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 2,192,759 | | | $ | — | | | $ | 2,192,759 | |
| Austria | | | | | — | | | | 320,011 | | | | — | | | | 320,011 | |
| Belgium | | | | | — | | | | 504,984 | | | | — | | | | 504,984 | |
| Brazil | | | | | 808,048 | | | | 547,616 | | | | — | | | | 1,355,664 | |
| Canada | | | | | 2,290,380 | | | | — | | | | — | | | | 2,290,380 | |
| Chile | | | | | — | | | | 446,648 | | | | — | | | | 446,648 | |
| China | | | | | 375,331 | | | | 3,269,953 | | | | — | | | | 3,645,284 | |
| Denmark | | | | | — | | | | 437,724 | | | | — | | | | 437,724 | |
| France | | | | | — | | | | 861,826 | | | | — | | | | 861,826 | |
| Germany | | | | | — | | | | 2,935,185 | | | | — | | | | 2,935,185 | |
| Hong Kong | | | | | — | | | | 1,045,691 | | | | — | | | | 1,045,691 | |
| India | | | | | 513,779 | | | | 777,496 | | | | — | | | | 1,291,275 | |
| Israel | | | | | 755,735 | | | | — | | | | — | | | | 755,735 | |
| Italy | | | | | 439,697 | | | | 778,859 | | | | — | | | | 1,218,556 | |
| Japan | | | | | — | | | | 4,871,766 | | | | — | | | | 4,871,766 | |
| Mexico | | | | | 451,883 | | | | — | | | | — | | | | 451,883 | |
| Norway | | | | | — | | | | 878,043 | | | | — | | | | 878,043 | |
| Russia | | | | | 541,838 | | | | — | | | | — | | | | 541,838 | |
| South Korea | | | | | — | | | | 861,911 | | | | — | | | | 861,911 | |
| Spain | | | | | — | | | | 447,781 | | | | — | | | | 447,781 | |
| Sweden | | | | | — | | | | 580,217 | | | | — | | | | 580,217 | |
| Switzerland | | | | | — | | | | 2,890,433 | | | | — | | | | 2,890,433 | |
| Taiwan | | | | | — | | | | 483,031 | | | | — | | | | 483,031 | |
| United Kingdom | | | | | 509,556 | | | | 4,869,793 | | | | — | | | | 5,379,349 | |
| Total Common Stock | | | | | 6,686,247 | | | | 30,001,727 | | | | — | | | | 36,687,974 | |
| Exchange-Traded Funds | | | | | 333,930 | | | | — | | | | — | | | | 333,930 | |
| Short-Term Investments | | | | | — | | | | 795,990 | | | | — | | | | 795,990 | |
| Total Investments, at value | | | | $ | 7,020,177 | | | $ | 30,797,717 | | | $ | — | | | $ | 37,817,894 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
161
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL CAPITAL
APPRECIATION FUND
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Short-Term Investments | | | | $ | 63,811 | | | $ | — | | | $ | (63,811 | ) | | $ | — | | | $ | (15,953 | ) | | $ | 15,953 | | | $ | — | | | $ | — | | | $ | — | |
| Total Investments, at value | | | | $ | 63,811 | | | $ | — | | | $ | (63,811 | ) | | $ | — | | | $ | (15,953 | ) | | $ | 15,953 | | | $ | — | | | $ | — | | | $ | — | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $0.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
162
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL CORE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 94.9% |
| |
| 70,662 | | | | | | BHP Billiton Ltd. | | $ | 2,766,028 | | | | 0.8 | |
| 152,765 | | | | | | Other Securities | | | 767,312 | | | | 0.2 | |
| | | | | | | | | | 3,533,340 | | | | 1.0 | |
| |
| |
| 35,132 | | | | | | Other Securities | | | 1,502,917 | | | | 0.4 | |
| |
| |
| 118,000 | | | | | | Petroleo Brasileiro SA ADR | | | 3,187,180 | | | | 0.9 | |
| 1,288,403 | | | | | | Other Securities | | | 12,258,299 | | | | 3.5 | |
| | | | | | | | | | 15,445,479 | | | | 4.4 | |
| |
| |
| 39,801 | | | | | | Canadian National Railway Co. | | | 3,117,795 | | | | 0.9 | |
| 104,916 | | | | | | Canadian Natural Resources Ltd. | | | 3,700,875 | | | | 1.0 | |
| 64,195 | | | | | | Potash Corp. of Saskatchewan | | | 3,038,349 | | | | 0.9 | |
| 418,800 | | | | | | Other Securities | | | 7,393,262 | | | | 2.1 | |
| | | | | | | | | | 17,250,281 | | | | 4.9 | |
| |
| |
| 50,200 | | | | | | Other Securities | | | 985,426 | | | | 0.3 | |
| |
| |
| 274,900 | | | | #,@ | | CITIC Securities Co. Ltd. | | | 547,762 | | | | 0.1 | |
| 1,811,065 | | | | | | CNOOC Ltd. | | | 3,423,564 | | | | 1.0 | |
| 7,185,584 | | | | | | Other Securities | | | 13,931,871 | | | | 4.0 | |
| | | | | | | | | | 17,903,197 | | | | 5.1 | |
| |
| |
| 36,650 | | | | | | Novo-Nordisk A/S | | | 3,891,000 | | | | 1.1 | |
| 33,665 | | | | | | Other Securities | | | 674,448 | | | | 0.2 | |
| | | | | | | | | | 4,565,448 | | | | 1.3 | |
| |
| |
| 31,379 | | | | | | Other Securities | | | 1,437,273 | | | | 0.4 | |
| |
| |
| 27,300 | | | | | | Air Liquide | | | 3,524,904 | | | | 1.0 | |
| 38,844 | | | | | | Cie Generale D’Optique Essilor International S.A. | | | 2,807,420 | | | | 0.8 | |
| 65,924 | | | | | | Groupe Danone | | | 4,570,042 | | | | 1.3 | |
| 26,900 | | | | | | LVMH Moet Hennessy Louis Vuitton S.A. | | | 4,458,517 | | | | 1.3 | |
| 39,774 | | | | | | Pernod-Ricard S.A. | | | 3,701,152 | | | | 1.1 | |
| 14,911 | | | | | | Unibail | | | 2,964,447 | | | | 0.9 | |
| 238,347 | | | | | | Other Securities | | | 12,032,777 | | | | 3.4 | |
| | | | | | | | | | 34,059,259 | | | | 9.8 | |
| |
| |
| 55,817 | | | | | | Adidas AG | | | 3,931,012 | | | | 1.1 | |
| 39,019 | | | | @ | | Continental AG | | | 2,909,572 | | | | 0.8 | |
| 50,711 | | | | | | Fresenius Medical Care AG & Co. KGaA | | | 3,694,080 | | | | 1.1 | |
| 348,524 | | | | | | Infineon Technologies AG | | | 3,137,836 | | | | 0.9 | |
| |
COMMON STOCK: (continued) |
| |
| 108,520 | | | | | | SAP AG | | $ | 6,561,981 | | | | 1.9 | |
| 34,880 | | | | | | Siemens AG | | | 3,656,153 | | | | 1.0 | |
| 69,743 | | | | | | Other Securities | | | 5,245,336 | | | | 1.5 | |
| | | | | | | | | | 29,135,970 | | | | 8.3 | |
| |
| |
| 1,238,000 | | | | | | AIA Group Ltd. | | | 3,785,481 | | | | 1.1 | |
| 187,500 | | | | | | Hong Kong Exchanges and Clearing Ltd. | | | 3,178,481 | | | | 0.9 | |
| 344,000 | | | | | | Other Securities | | | 690,934 | | | | 0.2 | |
| | | | | | | | | | 7,654,896 | | | | 2.2 | |
| |
| |
| 163,313 | | | | | | CRH PLC | | | 2,954,757 | | | | 0.8 | |
| 105,400 | | | | | | Other Securities | | | 1,263,746 | | | | 0.4 | |
| | | | | | | | | | 4,218,503 | | | | 1.2 | |
| |
| |
| 121,623 | | | | | | Teva Pharmaceutical Industries Ltd. ADR | | | 4,968,299 | | | | 1.4 | |
| 32,000 | | | | | | Other Securities | | | 1,844,160 | | | | 0.6 | |
| | | | | | | | | | 6,812,459 | | | | 2.0 | |
| |
| |
| 532,922 | | | | | | Other Securities | | | 2,605,014 | | | | 0.8 | |
| |
| |
| 141,230 | | | | | | Komatsu Ltd. | | | 3,491,885 | | | | 1.0 | |
| 1,118,600 | | | | | | Mitsubishi UFJ Financial Group, Inc. | | | 4,861,366 | | | | 1.4 | |
| 96,300 | | | | | | Toyota Motor Corp. | | | 3,197,235 | | | | 0.9 | |
| 591,275 | | | | | | Other Securities | | | 25,233,306 | | | | 7.2 | |
| | | | | | | | | | 36,783,792 | | | | 10.5 | |
| |
| |
| 355,000 | | | | | | Other Securities | | | 446,134 | | | | 0.1 | |
| |
| |
| 963,395 | | | | | | Other Securities | | | 2,486,740 | | | | 0.7 | |
| |
| |
| 95,626 | | | | | | Other Securities | | | 3,204,714 | | | | 0.9 | |
| |
| |
| 64,028 | | | | | | Other Securities | | | 1,140,514 | | | | 0.3 | |
| |
| |
| 64,000 | | | | | | Other Securities | | | 593,009 | | | | 0.2 | |
| |
| |
| 21,643 | | | | | | Other Securities | | | 316,849 | | | | 0.1 | |
| |
| |
| 18,446 | | | | | | Hyundai Motor Co. | | | 3,714,811 | | | | 1.1 | |
| 4,751 | | | | | | Samsung Electronics Co., Ltd. | | | 4,089,952 | | | | 1.2 | |
| 116,260 | | | | | | Other Securities | | | 3,287,453 | | | | 0.9 | |
| | | | | | | | | | 11,092,216 | | | | 3.2 | |
See Accompanying Notes to Financial Statements
163
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL CORE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 158,011 | | | | | | Telefonica S.A. | | $ | 3,357,989 | | | | 1.0 | |
| |
| |
| 102,093 | | | | | | Hennes & Mauritz AB | | | 3,375,639 | | | | 1.0 | |
| 77,441 | | | | | | Other Securities | | | 1,880,651 | | | | 0.5 | |
| | | | | | | | | | 5,256,290 | | | | 1.5 | |
| |
| |
| 70,900 | | | | | | Nestle S.A. | | | 4,100,693 | | | | 1.2 | |
| 70,608 | | | | | | Novartis AG | | | 3,977,721 | | | | 1.1 | |
| 26,666 | | | | | | Roche Holding AG —Genusschein | | | 4,375,075 | | | | 1.3 | |
| 50,842 | | | | | | Swiss Re Ltd. | | | 2,775,897 | | | | 0.8 | |
| 620,881 | | | | | | Other Securities | | | 17,261,086 | | | | 4.9 | |
| | | | | | | | | | 32,490,472 | | | | 9.3 | |
| |
| |
| 126,154 | | | | | | HTC Corp. | | | 2,835,128 | | | | 0.8 | |
| 1,241,220 | | | | | | Other Securities | | | 2,501,417 | | | | 0.7 | |
| | | | | | | | | | 5,336,545 | | | | 1.5 | |
| |
| |
| 438,394 | | | | | | Other Securities | | | 1,538,136 | | | | 0.4 | |
| |
| |
| 70,263 | | | | | | AstraZeneca PLC | | | 3,373,264 | | | | 1.0 | |
| 342,325 | | | | | | BG Group PLC | | | 7,422,970 | | | | 2.1 | |
| 391,548 | | | | | | BP PLC | | | 2,881,333 | | | | 0.8 | |
| 128,843 | | | | | | British American Tobacco PLC | | | 5,907,485 | | | | 1.7 | |
| 90,117 | | | | | | Carnival PLC | | | 3,297,329 | | | | 1.0 | |
| 129,347 | | | | | | Imperial Tobacco Group PLC | | | 4,711,705 | | | | 1.4 | |
| 700,831 | | | | | | Kingfisher PLC | | | 2,903,605 | | | | 0.8 | |
| 480,143 | | | | | | National Grid PLC | | | 4,773,595 | | | | 1.4 | |
| 71,029 | | | | | | Reckitt Benckiser PLC | | | 3,645,894 | | | | 1.0 | |
| 397,151 | | | | | | Rolls-Royce Holdings PLC | | | 4,470,512 | | | | 1.3 | |
| 225,484 | | | | | | Standard Chartered PLC | | | 5,261,511 | | | | 1.5 | |
| 982,695 | | | | | | Tesco PLC | | | 6,335,835 | | | | 1.8 | |
| 2,285,695 | | | | | | Vodafone Group PLC | | | 6,346,649 | | | | 1.8 | |
| 28,191,832 | | | | | | Other Securities | | | 12,003,081 | | | | 3.4 | |
| | | | | | | | | | 73,334,768 | | | | 21.0 | |
| |
| |
| 50,621 | | | | | | Schlumberger Ltd. | | | 3,719,125 | | | | 1.1 | |
| 88,152 | | | | | | Other Securities | | | 3,568,183 | | | | 1.0 | |
| | | | | | | | | | 7,287,308 | | | | 2.1 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $352,612,136) | | | 331,774,938 | | | | 94.9 | |
| |
PREFERRED STOCK: 1.0% |
| |
| 20,800 | | | | | | Volkswagen AG | | | 3,622,314 | | | | 1.0 | |
| |
| | | | | | | Total Preferred Stock | | | | | | | | |
| | | | | | | (Cost $3,503,971) | | | 3,622,314 | | | | 1.0 | |
| |
WARRANTS: 0.3% |
| |
| 107,481 | | | | | | Other Securities | | $ | 863,825 | | | | 0.3 | |
| |
| | | | | | | Total Warrants | | | | | | | | |
| | | | | | | (Cost $824,306) | | | 863,825 | | | | 0.3 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $356,940,413) | | | 336,261,077 | | | | 96.2 | |
| |
SHORT-TERM INVESTMENTS: 5.9% |
| |
| 20,626,938 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $20,626,938) | | | 20,626,938 | | | | 5.9 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $20,626,938) | | | 20,626,938 | | | | 5.9 | |
| |
| | | | | | | Total Investments in Securities
(Cost $377,567,351) | | $ | 356,888,015 | | | | 102.1 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (7,274,562 | ) | | | (2.1 | ) |
| | | | | | | Net Assets | | $ | 349,613,453 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| # | | 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. |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| | Cost for federal income tax purposes is $381,953,632. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 7,030,902 | |
| Gross Unrealized Depreciation | | | | | (32,096,519 | ) |
| Net Unrealized depreciation | | | | $ | (25,065,617 | ) |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 13.9 | % |
| Consumer Staples | | | | | 13.1 | |
| Energy | | | | | 9.5 | |
| Financials | | | | | 16.5 | |
| Health Care | | | | | 10.0 | |
| Industrials | | | | | 12.3 | |
| Information Technology | | | | | 8.8 | |
| Materials | | | | | 6.2 | |
| Telecommunications | | | | | 4.2 | |
| Utilities | | | | | 1.7 | |
| Short-Term Investments | | | | | 5.9 | |
| Liabilities in Excess of Other Assets | | | | | (2.1 | ) |
Net Assets | | | | | 100.0 | % |
See Accompanying Notes to Financial Statements
164
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL CORE FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 3,533,340 | | | $ | — | | | $ | 3,533,340 | |
| Belgium | | | | | — | | | | 1,502,917 | | | | — | | | | 1,502,917 | |
| Brazil | | | | | 14,474,183 | | | | 971,296 | | | | — | | | | 15,445,479 | |
| Canada | | | | | 17,250,281 | | | | — | | | | — | | | | 17,250,281 | |
| Chile | | | | | 985,426 | | | | — | | | | — | | | | 985,426 | |
| China | | | | | 547,762 | | | | 17,355,435 | | | | — | | | | 17,903,197 | |
| Denmark | | | | | — | | | | 4,565,448 | | | | — | | | | 4,565,448 | |
| Finland | | | | | — | | | | 1,437,273 | | | | — | | | | 1,437,273 | |
| France | | | | | — | | | | 34,059,259 | | | | — | | | | 34,059,259 | |
| Germany | | | | | — | | | | 29,135,970 | | | | — | | | | 29,135,970 | |
| Hong Kong | | | | | — | | | | 7,654,896 | | | | — | | | | 7,654,896 | |
| Ireland | | | | | 1,263,746 | | | | 2,954,757 | | | | — | | | | 4,218,503 | |
| Israel | | | | | 6,812,459 | | | | — | | | | — | | | | 6,812,459 | |
| Italy | | | | | — | | | | 2,605,014 | | | | — | | | | 2,605,014 | |
| Japan | | | | | — | | | | 36,783,792 | | | | — | | | | 36,783,792 | |
| Malaysia | | | | | — | | | | 446,134 | | | | — | | | | 446,134 | |
| Mexico | | | | | 2,486,740 | | | | — | | | | — | | | | 2,486,740 | |
| Netherlands | | | | | 2,233,701 | | | | 971,013 | | | | — | | | | 3,204,714 | |
| Norway | | | | | — | | | | 1,140,514 | | | | — | | | | 1,140,514 | |
| Singapore | | | | | — | | | | 593,009 | | | | — | | | | 593,009 | |
| South Africa | | | | | — | | | | 316,849 | | | | — | | | | 316,849 | |
| South Korea | | | | | — | | | | 11,092,216 | | | | — | | | | 11,092,216 | |
| Spain | | | | | — | | | | 3,357,989 | | | | — | | | | 3,357,989 | |
| Sweden | | | | | — | | | | 5,256,290 | | | | — | | | | 5,256,290 | |
| Switzerland | | | | | — | | | | 32,490,472 | | | | — | | | | 32,490,472 | |
| Taiwan | | | | | — | | | | 5,336,545 | | | | — | | | | 5,336,545 | |
| Turkey | | | | | — | | | | 1,538,136 | | | | — | | | | 1,538,136 | |
| United Kingdom | | | | | 2,304,224 | | | | 70,986,858 | | | | 43,686 | | | | 73,334,768 | |
| United States | | | | | 7,287,308 | | | | — | | | | — | | | | 7,287,308 | |
| Total Common Stock | | | | | 55,645,830 | | | | 276,085,422 | | | | 43,686 | | | | 331,774,938 | |
| Preferred Stock | | | | | — | | | | 3,622,314 | | | | — | | | | 3,622,314 | |
| Warrants | | | | | — | | | | 863,825 | | | | — | | | | 863,825 | |
| Short-Term Investments | | | | | 20,626,938 | | | | — | | | | — | | | | 20,626,938 | |
| Total Investments, at value | | | | $ | 76,272,768 | | | $ | 280,571,561 | | | $ | 43,686 | | | $ | 356,888,015 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | | — | | | | 288,355 | | | | — | | | | 288,355 | |
| Total Assets | | | | $ | 76,272,768 | | | $ | 280,859,916 | | | $ | 43,686 | | | $ | 357,176,370 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
165
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL CORE FUND
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | — | | | $ | 44,057 | | | $ | — | | | $ | — | | | $ | — | | | $ | (371 | ) | | $ | — | | | $ | — | | | $ | 43,686 | |
| Total Investments, at value | | | | $ | — | | | $ | 44,057 | | | $ | — | | | $ | — | | | $ | — | | | $ | (371 | ) | | $ | — | | | $ | — | | | $ | 43,686 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $(371).
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
At October 31, 2011 , the following forward foreign currency contracts were outstanding for the ING International Core Fund:
Counterparty
| | | | Currency
| | Contract
Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| State Street Bank | | | | EU Euro | | 936,900 | | Sell | | 11/09/11 | | $ | 1,322,687 | | | $ | 1,296,275 | | | $ | 26,412 | |
| State Street Bank | | | | EU Euro | | 2,620,100 | | Sell | | 11/09/11 | | | 3,763,643 | | | | 3,625,117 | | | | 138,526 | |
| State Street Bank | | | | EU Euro | | 2,441,800 | | Sell | | 11/09/11 | | | 3,499,392 | | | | 3,378,424 | | | | 120,968 | |
| UBS Warburg LLC | | | | Australian Dollar | | 172,202 | | Sell | | 11/03/11 | | | 183,866 | | | | 181,417 | | | | 2,449 | |
| | | | | | | | | | | | | | | | | | | | | $ | 288,355 | |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2011 was as follows:
Derivatives not accounted for as
hedging instruments
| | | | Location on Statement
of Assets and Liabilities
| | Fair Value
|
|---|
Asset Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized appreciation on forward foreign currency contracts | | $ | 288,355 | |
Total Asset Derivatives | | | | | | $ | 288,355 | |
The effect of derivative instruments on the Fund’s Statement of Operations for the period ended October 31, 2011 was as follows:
| | | | Amount of Realized Gain or (Loss)
on Derivatives Recognized in Income |
|---|
Derivatives not accounted for as hedging instruments
| | | | Foreign currency
related transactions*
|
|---|
| Foreign exchange contracts | | | | $ | (1,972,528 | ) |
Total | | | | $ | (1,972,528 | ) |
| | | | Change in Unrealized Appreciation
or (Depreciation) on Derivatives
Recognized in Income |
|---|
Derivatives not accounted for as hedging instruments
| | | | Foreign currency
related transactions*
|
|---|
| Foreign exchange contracts | | | | $ | 288,355 | |
Total | | | | $ | 288,355 | |
| * | | Amounts recognized for forward foreign currency contracts are included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign currency related transactions. |
See Accompanying Notes to Financial Statements
166
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL GROWTH FUND
Shares
|
|
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|
|
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 99.1% |
| |
| 149,673 | | | | | | Brambles Ltd. | | $ | 1,034,675 | | | | 0.7 | |
| 31,828 | | | | | | Cochlear Ltd. | | | 1,954,247 | | | | 1.3 | |
| 145,652 | | | | L | | Seek Ltd. | | | 944,276 | | | | 0.6 | |
| 776,977 | | | | | | Other Securities | | | 3,171,098 | | | | 2.1 | |
| | | | | | | | | | 7,104,296 | | | | 4.7 | |
| |
| |
| 15,823 | | | | | | Groupe Bruxelles Lambert S.A. | | | 1,216,260 | | | | 0.8 | |
| 33,984 | | | | | | Other Securities | | | 1,610,687 | | | | 1.1 | |
| | | | | | | | | | 2,826,947 | | | | 1.9 | |
| |
| |
| 98,900 | | | | | | Itau Unibanco Holding SA ADR | | | 1,890,968 | | | | 1.2 | |
| 53,900 | | | | | | Petroleo Brasileiro SA ADR | | | 1,363,131 | | | | 0.9 | |
| 321,300 | | | | | | Other Securities | | | 2,646,630 | | | | 1.8 | |
| | | | | | | | | | 5,900,729 | | | | 3.9 | |
| |
| |
| 53,600 | | | | | | Other Securities | | | 2,244,085 | | | | 1.5 | |
| |
| |
| 4,025,612 | | | | | | Other Securities | | | 7,260,829 | | | | 4.8 | |
| |
| |
| 34,608 | | | | | | Carlsberg A/S | | | 2,342,972 | | | | 1.6 | |
| 14,579 | | | | | | Novo-Nordisk A/S | | | 1,547,801 | | | | 1.0 | |
| 6,760 | | | | | | Novozymes A/S | | | 1,003,874 | | | | 0.7 | |
| 27,936 | | | | | | Other Securities | | | 811,995 | | | | 0.5 | |
| | | | | | | | | | 5,706,642 | | | | 3.8 | |
| |
| |
| 22,121 | | | | | | Kone OYJ | | | 1,217,911 | | | | 0.8 | |
| 72,307 | | | | | | Other Securities | | | 486,567 | | | | 0.3 | |
| | | | | | | | | | 1,704,478 | | | | 1.1 | |
| |
| |
| 11,018 | | | | | | BioMerieux | | | 956,031 | | | | 0.6 | |
| 22,465 | | | | | | Total S.A. | | | 1,172,162 | | | | 0.8 | |
| 133,401 | | | | | | Other Securities | | | 5,409,079 | | | | 3.6 | |
| | | | | | | | | | 7,537,272 | | | | 5.0 | |
| |
| |
| 14,686 | | | | | | Adidas AG | | | 1,034,288 | | | | 0.7 | |
| 85,554 | | | | | | Other Securities | | | 3,900,277 | | | | 2.6 | |
| | | | | | | | | | 4,934,565 | | | | 3.3 | |
| |
| |
| 274,000 | | | | | | Hang Lung Properties Ltd. | | | 997,858 | | | | 0.7 | |
| 1,014,000 | | | | | | Li & Fung Ltd. | | | 1,954,175 | | | | 1.3 | |
| 921,700 | | | | | | Other Securities | | | 2,827,740 | | | | 1.9 | |
| | | | | | | | | | 5,779,773 | | | | 3.9 | |
| |
| |
| 56,149 | | | | | | Mahindra & Mahindra Ltd. GDR | | | 994,837 | | | | 0.7 | |
| |
COMMON STOCK: (continued) |
| |
| 11,052 | | | | # | | Reliance Industries Ltd. GDR | | $ | 399,575 | | | | 0.3 | |
| 400,211 | | | | | | Other Securities | | | 1,992,730 | | | | 1.3 | |
| | | | | | | | | | 3,387,142 | | | | 2.3 | |
| |
| |
| 538,338 | | | | | | Other Securities | | | 494,543 | | | | 0.3 | |
| |
| |
| 9,600 | | | | | | Other Securities | | | 578,496 | | | | 0.4 | |
| |
| |
| 122,943 | | | | | | Other Securities | | | 751,182 | | | | 0.5 | |
| |
| |
| 186,621 | | | | | | Other Securities | | | 499,290 | | | | 0.3 | |
| |
| |
| 61,300 | | | | | | Asahi Group Holdings, Ltd | | | 1,254,875 | | | | 0.8 | |
| 215 | | | | | | Inpex Holdings, Inc. | | | 1,419,448 | | | | 0.9 | |
| 54,200 | | | | | | Kao Corp. | | | 1,421,903 | | | | 0.9 | |
| 108,600 | | | | | | Namco Bandai Holdings, Inc. | | | 1,574,656 | | | | 1.1 | |
| 907 | | | | | | Rakuten, Inc. | | | 994,286 | | | | 0.7 | |
| 20,500 | | | | | | Sankyo Co., Ltd. | | | 1,071,265 | | | | 0.7 | |
| 58,500 | | | | | | THK Co., Ltd. | | | 1,140,106 | | | | 0.8 | |
| 373,024 | | | | | | Other Securities | | | 10,487,623 | | | | 7.0 | |
| | | | | | | | | | 19,364,162 | | | | 12.9 | |
| |
| |
| 47,750 | | | | | | Other Securities | | | 811,828 | | | | 0.5 | |
| |
| |
| 15,006 | | | | | | Other Securities | | | 406,827 | | | | 0.3 | |
| |
| |
| 32,424 | | | | | | Royal Dutch Shell PLC — Class B | | | 1,163,312 | | | | 0.8 | |
| 59,087 | | | | | | Other Securities | | | 1,200,090 | | | | 0.8 | |
| | | | | | | | | | 2,363,402 | | | | 1.6 | |
| |
| |
| 42,390 | | | | | | Other Securities | | | 1,213,811 | | | | 0.8 | |
| |
| |
| 26,542 | | | | | | Other Securities | | | 455,138 | | | | 0.3 | |
| |
| |
| 8,537 | | | | | | Other Securities | | | 216,997 | | | | 0.1 | |
| |
| |
| 102,775 | | | | | | United Overseas Bank Ltd. | | | 1,393,890 | | | | 0.9 | |
| 61,000 | | | | | | Other Securities | | | 595,834 | | | | 0.4 | |
| | | | | | | | | | 1,989,724 | | | | 1.3 | |
| |
| |
| 157,002 | | | | | | Other Securities | | | 820,338 | | | | 0.6 | |
See Accompanying Notes to Financial Statements
167
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL GROWTH FUND
Shares
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 4,306 | | | | | | Samsung Electronics Co., Ltd. GDR | | $ | 1,845,543 | | | | 1.2 | |
| 2,244 | | | | | | Other Securities | | | 551,068 | | | | 0.4 | |
| | | | | | | | | | 2,396,611 | | | | 1.6 | |
| |
| |
| 19,881 | | | | | | Corporacion Financiera Alba SA | | | 968,061 | | | | 0.7 | |
| 205,700 | | | | @ | | Distribuidora Internacional de Alimentacion SA | | | 940,693 | | | | 0.6 | |
| 82,026 | | | | | | Other Securities | | | 1,021,431 | | | | 0.7 | |
| | | | | | | | | | 2,930,185 | | | | 2.0 | |
| |
| |
| 105,277 | | | | | | Atlas Copco AB — Class B | | | 2,045,789 | | | | 1.4 | |
| 59,002 | | | | | | Scania AB — B Shares | | | 990,050 | | | | 0.6 | |
| 71,929 | | | | | | Svenska Handelsbanken AB | | | 2,065,835 | | | | 1.4 | |
| 73,600 | | | | | | Other Securities | | | 1,551,008 | | | | 1.0 | |
| | | | | | | | | | 6,652,682 | | | | 4.4 | |
| |
| |
| 5,220 | | | | | | Geberit AG — Reg | | | 1,069,043 | | | | 0.7 | |
| 6,932 | | | | @ | | Mettler Toledo International, Inc. | | | 1,064,755 | | | | 0.7 | |
| 47,358 | | | | | | Nestle S.A. | | | 2,739,078 | | | | 1.8 | |
| 15,913 | | | | | | Roche Holding AG —Genusschein | | | 2,610,836 | | | | 1.8 | |
| 10,543 | | | | | | Schindler Holding AG | | | 1,234,636 | | | | 0.8 | |
| 159,687 | | | | | | Other Securities | | | 4,949,750 | | | | 3.3 | |
| | | | | | | | | | 13,668,098 | | | | 9.1 | |
| |
| |
| 409,690 | | | | | | Other Securities | | | 2,138,158 | | | | 1.4 | |
| |
| |
| 365,076 | | | | | | Turkiye Garanti Bankasi A/S | | | 1,280,895 | | | | 0.9 | |
| |
| United Arab Emirates: 0.2% |
| 25,722 | | | | | | Other Securities | | | 279,840 | | | | 0.2 | |
| |
| |
| 44,633 | | | | @ | | ASOS PLC | | | 1,112,794 | | | | 0.7 | |
| 83,656 | | | | | | BG Group PLC | | | 1,813,995 | | | | 1.2 | |
| 74,169 | | | | | | BHP Billiton PLC | | | 2,335,541 | | | | 1.5 | |
| 36,000 | | | | | | Imperial Tobacco Group PLC | | | 1,311,367 | | | | 0.9 | |
| 48,568 | | | | | | Intertek Group PLC | | | 1,601,323 | | | | 1.1 | |
| 49,000 | | | | | | Johnson Matthey PLC | | | 1,473,867 | | | | 1.0 | |
| 61,756 | | | | | | Rightmove PLC | | | 1,292,121 | | | | 0.9 | |
| 74,185 | | | | | | Standard Chartered PLC | | | 1,731,055 | | | | 1.1 | |
| 154,913 | | | | | | Tesco PLC | | | 998,787 | | | | 0.7 | |
| 54,289 | | | | | | Unilever PLC | | | 1,819,774 | | | | 1.2 | |
| |
COMMON STOCK: (continued) |
| United Kingdom: (continued) |
| 34,000 | | | | | | Weir Group PLC | | $ | 1,041,650 | | | | 0.7 | |
| 112,007 | | | | | | WPP PLC | | | 1,159,390 | | | | 0.8 | |
| 4,951,235 | | | | | | Other Securities | | | 13,872,865 | | | | 9.2 | |
| | | | | | | | | | 31,564,529 | | | | 21.0 | |
| |
| |
| 39,688 | | | | | | Coca-Cola Enterprises, Inc. | | | 1,064,432 | | | | 0.7 | |
| 126,297 | | | | | | Other Securities | | | 2,495,459 | | | | 1.7 | |
| | | | | | | | | | 3,559,891 | | | | 2.4 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $162,893,388) | | | 148,823,385 | | | | 99.1 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 2.1% |
| Securities Lending Collateralcc(1): 1.8% |
| 785,702 | | | | | | Daiwa Capital Markets, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $785,702, collateralized by various U.S. Government and U.S. Government Agency Obligations, 0.000%–8.750%, Market Value plus accrued interest $801,406, due 12/22/11–03/01/48) | | | 785,702 | | | | 0.5 | |
| 1,000,000 | | | | | | Deutsche Bank AG, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $1,000,000, collateralized by various U.S. Government Agency Obligations, 1.750%–7.000%, Market Value plus accrued interest $1,020,000, due 07/01/12–10/01/41) | | | 1,000,000 | | | | 0.7 | |
| 1,000,000 | | | | | | UBS Warburg LLC, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $1,000,000, collateralized by various U.S. Government Agency Obligations, 2.454%–7.000%, Market Value plus accrued interest $1,020,000, due 04/01/14–07/01/48) | | | 1,000,000 | | | | 0.6 | |
| | | | | | | | | | 2,785,702 | | | | 1.8 | |
See Accompanying Notes to Financial Statements
168
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL GROWTH FUND
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| Value
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| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: (continued) |
| |
| 413,093 | | | | @ | | T. Rowe Price Reserve Investment Fund
(Cost $413,093) | | $ | 413,093 | | | | 0.3 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $3,198,795) | | | 3,198,795 | | | | 2.1 | |
| |
| | | | | | | Total Investments in Securities
(Cost $166,092,183) | | $ | 152,022,180 | | | | 101.2 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (1,790,474 | ) | | | (1.2 | ) |
| | | | | | | Net Assets | | $ | 150,231,706 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | 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. |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| GDR | | Global Depository 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, 2011. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | Cost for federal income tax purposes is $166,202,586. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 5,074,782 | |
| Gross Unrealized Depreciation | | | | | (19,255,187 | ) |
| Net Unrealized depreciation | | | | $ | (14,180,405 | ) |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 19.3 | % |
| Consumer Staples | | | | | 13.8 | |
| Energy | | | | | 9.1 | |
| Financials | | | | | 17.7 | |
| Health Care | | | | | 8.7 | |
| Industrials | | | | | 15.6 | |
| Information Technology | | | | | 6.7 | |
| Materials | | | | | 6.8 | |
| Telecommunications | | | | | 1.2 | |
| Utilities | | | | | 0.2 | |
| Short-Term Investments | | | | | 2.1 | |
| Liabilities in Excess of Other Assets | | | | | (1.2 | ) |
Net Assets | | | | | 100.0 | % |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 7,104,296 | | | $ | — | | | $ | 7,104,296 | |
| Belgium | | | | | — | | | | 2,826,947 | | | | — | | | | 2,826,947 | |
| Brazil | | | | | 4,009,761 | | | | 1,890,968 | | | | — | | | | 5,900,729 | |
| Canada | | | | | 2,244,085 | | | | — | | | | — | | | | 2,244,085 | |
| China | | | | | 2,697,125 | | | | 4,563,704 | | | | — | | | | 7,260,829 | |
| Denmark | | | | | — | | | | 5,706,642 | | | | — | | | | 5,706,642 | |
| Finland | | | | | — | | | | 1,704,478 | | | | — | | | | 1,704,478 | |
| France | | | | | — | | | | 7,537,272 | | | | — | | | | 7,537,272 | |
| Germany | | | | | — | | | | 4,934,565 | | | | — | | | | 4,934,565 | |
| Hong Kong | | | | | — | | | | 5,779,773 | | | | — | | | | 5,779,773 | |
| India | | | | | 591,759 | | | | 2,795,383 | | | | — | | | | 3,387,142 | |
| Indonesia | | | | | 251,777 | | | | 242,766 | | | | — | | | | 494,543 | |
| Ireland | | | | | 578,496 | | | | — | | | | — | | | | 578,496 | |
| Israel | | | | | 751,182 | | | | — | | | | — | | | | 751,182 | |
| Italy | | | | | 262,213 | | | | 237,077 | | | | — | | | | 499,290 | |
| Japan | | | | | — | | | | 19,364,162 | | | | — | | | | 19,364,162 | |
| Kazakhstan | | | | | — | | | | 811,828 | | | | — | | | | 811,828 | |
| Mexico | | | | | — | | | | 406,827 | | | | — | | | | 406,827 | |
| Netherlands | | | | | — | | | | 2,363,402 | | | | — | | | | 2,363,402 | |
| Norway | | | | | — | | | | 1,213,811 | | | | — | | | | 1,213,811 | |
See Accompanying Notes to Financial Statements
169
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL GROWTH FUND
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
| Portugal | | | | $ | — | | | $ | 455,138 | | | $ | — | | | $ | 455,138 | |
| Russia | | | | | — | | | | 216,997 | | | | — | | | | 216,997 | |
| Singapore | | | | | — | | | | 1,989,724 | | | | — | | | | 1,989,724 | |
| South Africa | | | | | — | | | | 820,338 | | | | — | | | | 820,338 | |
| South Korea | | | | | — | | | | 2,396,611 | | | | — | | | | 2,396,611 | |
| Spain | | | | | 940,693 | | | | 1,989,492 | | | | — | | | | 2,930,185 | |
| Sweden | | | | | — | | | | 6,652,682 | | | | — | | | | 6,652,682 | |
| Switzerland | | | | | 1,064,755 | | | | 12,603,343 | | | | — | | | | 13,668,098 | |
| Taiwan | | | | | 875,828 | | | | 1,262,330 | | | | — | | | | 2,138,158 | |
| Turkey | | | | | — | | | | 1,280,895 | | | | — | | | | 1,280,895 | |
| United Arab Emirates | | | | | — | | | | 279,840 | | | | — | | | | 279,840 | |
| United Kingdom | | | | | — | | | | 31,558,868 | | | | 5,661 | | | | 31,564,529 | |
| United States | | | | | 3,559,891 | | | | — | | | | — | | | | 3,559,891 | |
| Total Common Stock | | | | | 17,827,565 | | | | 130,990,159 | | | | 5,661 | | | | 148,823,385 | |
| Short-Term Investments | | | | | 413,093 | | | | 2,785,702 | | | | — | | | | 3,198,795 | |
| Total Investments, at value | | | | $ | 18,240,658 | | | $ | 133,775,861 | | | $ | 5,661 | | | $ | 152,022,180 | |
Liabilities Table | | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | $ | — | | | $ | (3,916 | ) | | $ | — | | | $ | (3,916 | ) |
| Total Liabilities | | | | $ | — | | | $ | (3,916 | ) | | $ | — | | | $ | (3,916 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | — | | | $ | 5,546 | | | $ | — | | | $ | — | | | $ | — | | | $ | 115 | | | $ | — | | | $ | — | | | $ | 5,661 | |
| Total Investments, at value | | | | $ | — | | | $ | 5,546 | | | $ | — | | | $ | — | | | $ | — | | | $ | 115 | | | $ | — | | | $ | — | | | $ | 5,661 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $115.
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
At October 31, 2011, the following forward foreign currency contracts were outstanding for the ING International Growth Fund:
Counterparty
| | | | Currency
| | Contract
Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| The Bank of New York Mellon Corp. | | | | Australian Dollar | | 119,710 | | Buy | | 11/02/11 | | $ | 127,706 | | | $ | 126,161 | | | $ | (1,545 | ) |
| The Bank of New York Mellon Corp. | | | | Australian Dollar | | 128,261 | | Buy | | 11/03/11 | | | 137,496 | | | | 135,125 | | | | (2,371 | ) |
| | | | | | | | | | | | | | | | | | | | | $ | (3,916 | ) |
See Accompanying Notes to Financial Statements
170
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL GROWTH FUND
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2011 was as follows:
Derivatives not accounted for as
hedging instruments
| | | | Location on Statement
of Assets and Liabilities
| | Fair Value
|
|---|
Liability Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized depreciation on forward foreign currency contracts | | $ | 3,916 | |
Total Liability Derivatives | | | | | | $ | 3,916 | |
The effect of derivative instruments on the Fund’s Statement of Operations for the period ended October 31, 2011 was as follows:
| | | | Amount of Realized Gain or (Loss)
on Derivatives Recognized in Income |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Foreign currency
related transactions*
|
|---|
| Foreign exchange contracts | | | | $ | 391,343 | |
Total | | | | $ | 391,343 | |
| | | | Change in Unrealized Appreciation
or (Depreciation) on Derivatives
Recognized in Income |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Foreign currency
related transactions*
|
|---|
| Foreign exchange contracts | | | | $ | (3,916 | ) |
Total | | | | $ | (3,916 | ) |
| * | | Amounts recognized for forward foreign currency contracts are included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign currency related transactions. |
See Accompanying Notes to Financial Statements
171
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL REAL ESTATE FUND
Shares
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 99.2% |
| |
| 7,164,657 | | | | | | Dexus Property Group | | $ | 6,373,378 | | | | 1.3 | |
| 10,710,622 | | | | | | Goodman Group | | | 6,960,177 | | | | 1.5 | |
| 2,185,040 | | | | | | GPT Group | | | 7,211,258 | | | | 1.5 | |
| 6,019,600 | | | | | | Investa Office Fund | | | 3,935,287 | | | | 0.8 | |
| 4,169,417 | | | | | | Mirvac Group | | | 5,459,785 | | | | 1.2 | |
| 2,226,900 | | | | | | Stockland | | | 7,353,663 | | | | 1.6 | |
| 2,789,676 | | | | | | Westfield Group | | | 22,457,889 | | | | 4.7 | |
| 4,503,790 | | | | | | Westfield Retail Trust | | | 12,002,544 | | | | 2.5 | |
| 6,093,100 | | | | | | Other Securities | | | 9,590,591 | | | | 2.0 | |
| | | | | | | | | | 81,344,572 | | | | 17.1 | |
| |
| |
| 1,017,518 | | | | | | Other Securities | | | 3,805,306 | | | | 0.8 | |
| |
| |
| 157,200 | | | | | | Other Securities | | | 1,784,128 | | | | 0.4 | |
| |
| |
| 618,550 | | | | | | Brookfield Properties Co. | | | 10,218,446 | | | | 2.2 | |
| 399,200 | | | | | | RioCan Real Estate Investment Trust | | | 10,128,686 | | | | 2.1 | |
| 196,200 | | | | | | Other Securities | | | 5,608,717 | | | | 1.2 | |
| | | | | | | | | | 25,955,849 | | | | 5.5 | |
| |
| |
| 2,058,000 | | | | | | Other Securities | | | 3,001,129 | | | | 0.6 | |
| |
| |
| 372,810 | | | | | | Other Securities | | | 1,373,004 | | | | 0.3 | |
| |
| |
| 54,555 | | | | | | ICADE | | | 4,882,540 | | | | 1.0 | |
| 108,809 | | | | | | Unibail | | | 21,632,251 | | | | 4.6 | |
| 187,194 | | | | | | Other Securities | | | 8,383,810 | | | | 1.8 | |
| | | | | | | | | | 34,898,601 | | | | 7.4 | |
| |
| |
| 100,540 | | | | @ | | GSW Immobilien AG | | | 3,266,444 | | | | 0.7 | |
| 252,200 | | | | | | Other Securities | | | 2,273,755 | | | | 0.5 | |
| | | | | | | | | | 5,540,199 | | | | 1.2 | |
| |
| |
| 1,756,965 | | | | | | Cheung Kong Holdings Ltd. | | | 21,779,217 | | | | 4.6 | |
| 3,744,895 | | | | | | Hang Lung Properties Ltd. | | | 13,638,219 | | | | 2.9 | |
| 1,275,694 | | | | | | Hongkong Land Holdings Ltd. | | | 6,703,819 | | | | 1.4 | |
| 1,324,600 | | | | | | Kerry Properties Ltd. | | | 4,861,190 | | | | 1.0 | |
| 2,979,400 | | | | | | Link Real Estate Investment Trust | | | 10,231,979 | | | | 2.2 | |
| 2,522,000 | | | | | | Sino Land Co. | | | 3,986,619 | | | | 0.8 | |
| 1,702,800 | | | | | | Sun Hung Kai Properties Ltd. | | | 23,445,476 | | | | 4.9 | |
| 1,294,285 | | | | | | Wharf Holdings Ltd. | | | 6,884,621 | | | | 1.5 | |
| |
COMMON STOCK: (continued) |
| |
| 250,000 | | | | | | Other Securities | | $ | 1,366,507 | | | | 0.3 | |
| | | | | | | | | | 92,897,647 | | | | 19.6 | |
| |
| |
| 1,179,920 | | | | | | Other Securities | | | 709,088 | | | | 0.1 | |
| |
| |
| 3,200 | | | | | | Advance Residence Investment Corp. | | | 6,062,123 | | | | 1.3 | |
| 167,600 | | | | | | Aeon Mall Co., Ltd. | | | 3,885,645 | | | | 0.8 | |
| 112,600 | | | | | | Daito Trust Construction Co., Ltd. | | | 9,976,423 | | | | 2.1 | |
| 388 | | | | | | Frontier Real Estate Investment Corp. | | | 3,364,561 | | | | 0.7 | |
| 2,873 | | | | | | Japan Retail Fund Investment Corp. | | | 4,447,327 | | | | 0.9 | |
| 1,369 | | | | | | Kenedix Realty Investment Corp. | | | 3,969,924 | | | | 0.8 | |
| 1,595,400 | | | | | | Mitsubishi Estate Co., Ltd. | | | 27,021,354 | | | | 5.7 | |
| 1,218,477 | | | | | | Mitsui Fudosan Co., Ltd. | | | 20,263,622 | | | | 4.3 | |
| 878 | | | | | | Nippon Building Fund, Inc. | | | 8,478,590 | | | | 1.8 | |
| 250,000 | | | | | | Nomura Real Estate Holdings, Inc. | | | 4,030,155 | | | | 0.9 | |
| 252,100 | | | | | | Sumitomo Realty & Development Co., Ltd. | | | 5,225,309 | | | | 1.1 | |
| 4,123 | | | | | | United Urban Investment Corp. | | | 4,649,267 | | | | 1.0 | |
| 829 | | | | | | Other Securities | | | 6,393,323 | | | | 1.3 | |
| | | | | | | | | | 107,767,623 | | | | 22.7 | |
| |
| |
| 121,110 | | | | | | Corio NV | | | 6,154,611 | | | | 1.3 | |
| 17,170 | | | | | | Other Securities | | | 732,328 | | | | 0.1 | |
| | | | | | | | | | 6,886,939 | | | | 1.4 | |
| |
| |
| 2,527,000 | | | | | | Ascendas Real Estate Investment Trust | | | 4,111,289 | | | | 0.9 | |
| 4,444,900 | | | | | | CapitaCommercial Trust | | | 3,970,725 | | | | 0.8 | |
| 5,188,400 | | | | | | CapitaLand Ltd. | | | 11,178,128 | | | | 2.4 | |
| 3,936,583 | | | | | | CapitaMall Trust | | | 5,848,888 | | | | 1.2 | |
| 3,555,100 | | | | @ | | Global Logistic Properties Ltd. | | | 4,949,876 | | | | 1.0 | |
| 4,793,000 | | | | | | Mapletree Commercial Trust | | | 3,309,355 | | | | 0.7 | |
| 3,451,400 | | | | | | Mapletree Industrial Trust | | | 3,174,529 | | | | 0.7 | |
| 2,571,900 | | | | | | Other Securities | | | 4,823,042 | | | | 1.0 | |
| | | | | | | | | | 41,365,832 | | | | 8.7 | |
| |
| |
| 212,316 | | | | | | Castellum AB | | | 2,874,304 | | | | 0.6 | |
| 270,173 | | | | | | Hufvudstaden AB | | | 2,931,103 | | | | 0.6 | |
| 232,200 | | | | | | Other Securities | | | 2,591,207 | | | | 0.6 | |
| | | | | | | | | | 8,396,614 | | | | 1.8 | |
| |
See Accompanying Notes to Financial Statements
172
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL REAL ESTATE FUND
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 54,340 | | | | | | PSP Swiss Property AG | | $ | 4,943,864 | | | | 1.0 | |
| 50,919 | | | | | | Swiss Prime Site AG | | | 4,164,399 | | | | 0.9 | |
| | | | | | | | | | 9,108,263 | | | | 1.9 | |
| |
| |
| 650,430 | | | | | | British Land Co. PLC | | | 5,321,243 | | | | 1.1 | |
| 663,960 | | | | | | Great Portland Estates PLC | | | 3,969,195 | | | | 0.8 | |
| 1,309,251 | | | | | | Hammerson PLC | | | 8,553,466 | | | | 1.8 | |
| 928,181 | | | | | | Land Securities Group PLC | | | 10,158,380 | | | | 2.2 | |
| 2,443,730 | | | | @ | | LXB Retail Properties PLC | | | 3,968,561 | | | | 0.8 | |
| 4,734,203 | | | | | | Other Securities | | | 14,076,732 | | | | 3.0 | |
| | | | | | | | | | 46,047,577 | | | | 9.7 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $418,617,759) | | | 470,882,371 | | | | 99.2 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 3,777,816 | | | | 0.8 | |
| | | | | | | Net Assets | | $ | 474,660,187 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| @ | | Non-income producing security |
| | Cost for federal income tax purposes is $483,876,310. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 41,540,132 | |
| Gross Unrealized Depreciation | | | | | (54,534,071 | ) |
| Net Unrealized depreciation | | | | $ | (12,993,939 | ) |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Financials | | | | | 99.2 | % |
| Assets in Excess of Other Liabilities | | | | | 0.8 | |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 81,344,572 | | | $ | — | | | $ | 81,344,572 | |
| Austria | | | | | — | | | | 3,805,306 | | | | — | | | | 3,805,306 | |
| Brazil | | | | | 1,784,128 | | | | — | | | | — | | | | 1,784,128 | |
| Canada | | | | | 25,955,849 | | | | — | | | | — | | | | 25,955,849 | |
| China | | | | | — | | | | 3,001,129 | | | | — | | | | 3,001,129 | |
| Finland | | | | | — | | | | 1,373,004 | | | | — | | | | 1,373,004 | |
| France | | | | | — | | | | 34,898,601 | | | | — | | | | 34,898,601 | |
| Germany | | | | | 1,174,067 | | | | 4,366,132 | | | | — | | | | 5,540,199 | |
| Hong Kong | | | | | — | | | | 92,897,647 | | | | — | | | | 92,897,647 | |
| Italy | | | | | — | | | | 709,088 | | | | — | | | | 709,088 | |
| Japan | | | | | — | | | | 107,767,623 | | | | — | | | | 107,767,623 | |
| Netherlands | | | | | — | | | | 6,886,939 | | | | — | | | | 6,886,939 | |
| Singapore | | | | | — | | | | 41,365,832 | | | | — | | | | 41,365,832 | |
| Sweden | | | | | — | | | | 8,396,614 | | | | — | | | | 8,396,614 | |
| Switzerland | | | | | — | | | | 9,108,263 | | | | — | | | | 9,108,263 | |
| United Kingdom | | | | | 6,951,591 | | | | 39,095,986 | | | | — | | | | 46,047,577 | |
| Total Common Stock | | | | | 35,865,635 | | | | 435,016,736 | | | | — | | | | 470,882,371 | |
| Total Investments, at value | | | | $ | 35,865,635 | | | $ | 435,016,736 | | | $ | — | | | $ | 470,882,371 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
173
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL
SMALLCAP MULTI-MANAGER FUND
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| Value
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| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 97.8% |
| |
| 230,335 | | | | | | Amcor Ltd. | | $ | 1,685,180 | | | | 0.6 | |
| 129,811 | | | | | | Ansell Ltd. | | | 1,898,643 | | | | 0.6 | |
| 131,080 | | | | | | Caltex Australia Ltd. | | | 1,820,429 | | | | 0.6 | |
| 204,672 | | | | | | Computershare Ltd. | | | 1,617,506 | | | | 0.5 | |
| 603,376 | | | | | | Myer Holdings Ltd. | | | 1,646,826 | | | | 0.5 | |
| 12,366,138 | | | | | | Other Securities | | | 14,623,431 | | | | 4.8 | |
| | | | | | | | | | 23,292,015 | | | | 7.6 | |
| |
| |
| 20,000 | | | | | | Kapsch TrafficCom AG | | | 1,498,561 | | | | 0.5 | |
| 14,000 | | | | | | Mayr Melnhof Karton AG | | | 1,296,045 | | | | 0.4 | |
| 36,825 | | | | | | Other Securities | | | 1,368,635 | | | | 0.5 | |
| | | | | | | | | | 4,163,241 | | | | 1.4 | |
| |
| |
| 41,799 | | | | | | Tessenderlo Chemie NV | | | 1,296,947 | | | | 0.4 | |
| 406,341 | | | | | | Other Securities | | | 2,804,416 | | | | 0.9 | |
| | | | | | | | | | 4,101,363 | | | | 1.3 | |
| |
| |
| 6,361 | | | | | | Other Securities | | | 46,372 | | | | 0.0 | |
| |
| |
| 253,718 | | | | | | Other Securities | | | 2,329,650 | | | | 0.8 | |
| |
| |
| 997,391 | | | | | | Other Securities | | | 11,805,104 | | | | 3.8 | |
| |
| |
| 25,955,138 | | | | | | Other Securities | | | 8,872,734 | | | | 2.9 | |
| |
| |
| 147,437 | | | | | | Other Securities | | | 3,615,415 | | | | 1.2 | |
| |
| |
| 11,431 | | | | | | Other Securities | | | 31,376 | | | | 0.0 | |
| |
| |
| 35,701 | | | | | | Other Securities | | | 182,371 | | | | 0.1 | |
| |
| |
| 25,082 | | | | | | Arkema | | | 1,704,550 | | | | 0.6 | |
| 45,000 | | | | | | Bourbon SA | | | 1,249,027 | | | | 0.4 | |
| 170,000 | | | | | | Groupe Eurotunnel S.A. | | | 1,531,349 | | | | 0.5 | |
| 61,611 | | | | | | Peugeot S.A. | | | 1,340,551 | | �� | | 0.4 | |
| 52,143 | | | | | | Rallye SA | | | 1,667,155 | | | | 0.5 | |
| 426,570 | | | | | | Other Securities | | | 6,681,383 | | | | 2.2 | |
| | | | | | | | | | 14,174,015 | | | | 4.6 | |
| |
| |
| 36,174 | | | | | | Aurubis AG | | | 2,040,985 | | | | 0.7 | |
| 50,653 | | | | | | Bechtle AG | | | 1,889,616 | | | | 0.6 | |
| 16,000 | | | | | | Bilfinger Berger AG | | | 1,428,138 | | | | 0.5 | |
| 18,414 | | | | | | Draegerwerk AG & Co. KGaA | | | 1,929,103 | | | | 0.6 | |
| 190,000 | | | | | | Freenet AG | | | 2,449,443 | | | | 0.8 | |
| |
COMMON STOCK: (continued) |
| |
| 34,000 | | | | | | Rheinmetall AG | | $ | 1,803,151 | | | | 0.6 | |
| 679,253 | | | | | | Other Securities | | | 11,881,664 | | | | 3.8 | |
| | | | | | | | | | 23,422,100 | | | | 7.6 | |
| |
| |
| 5,369 | | | | | | Other Securities | | | 35,167 | | | | 0.0 | |
| |
| |
| 5,538,000 | | | | | | EVA Precision Industrial Holdings Ltd. | | | 1,430,195 | | | | 0.4 | |
| 827,500 | | | | | | Ports Design Ltd. | | | 1,475,570 | | | | 0.5 | |
| 49,474,046 | | | | | | Other Securities | | | 7,919,485 | | | | 2.6 | |
| | | | | | | | | | 10,825,250 | | | | 3.5 | |
| |
| |
| 960,111 | | | | | | Other Securities | | | 2,542,877 | | | | 0.8 | |
| |
| |
| 25,421,348 | | | | | | Other Securities | | | 1,421,515 | | | | 0.5 | |
| |
| |
| 592,309 | | | | | | Other Securities | | | 2,822,060 | | | | 0.9 | |
| |
| |
| 191,087 | | | | | | Other Securities | | | 914,330 | | | | 0.3 | |
| |
| |
| 203,333 | | | | | | Azimut Holding S.p.A. | | | 1,584,938 | | | | 0.5 | |
| 1,123,379 | | | | | | Other Securities | | | 6,518,285 | | | | 2.1 | |
| | | | | | | | | | 8,103,223 | | | | 2.6 | |
| |
| |
| 353,000 | | | | | | JFE Shoji Holdings, Inc. | | | 1,431,932 | | | | 0.5 | |
| 1,566,000 | | | | @ | | Kanematsu Corp. | | | 1,320,403 | | | | 0.4 | |
| 85,600 | | | | | | Modec, Inc. | | | 1,494,347 | | | | 0.5 | |
| 55,800 | | | | | | Musashi Seimitsu Industry Co., Ltd. | | | 1,319,082 | | | | 0.4 | |
| 161,000 | | | | | | Nippo Corp. | | | 1,417,895 | | | | 0.5 | |
| 51,534 | | | | | | Unipres Corp. | | | 1,405,682 | | | | 0.4 | |
| 1,049,000 | | | | | | Yuasa Trading Co., Ltd. | | | 1,465,738 | | | | 0.5 | |
| 8,672,991 | | | | | | Other Securities | | | 50,786,470 | | | | 16.5 | |
| | | | | | | | | | 60,641,549 | | | | 19.7 | |
| |
| |
| 2,623,072 | | | | | | Other Securities | | | 2,082,108 | | | | 0.7 | |
| |
| |
| 129,700 | | | | | | Other Securities | | | 130,847 | | | | 0.0 | |
| |
| |
| 115,000 | | | | | | Delta Lloyd NV | | | 2,019,341 | | | | 0.7 | |
| 23,000 | | | | | | Fugro NV | | | 1,350,795 | | | | 0.4 | |
| 69,500 | | | | | | Imtech NV | | | 2,053,158 | | | | 0.7 | |
| 39,500 | | | | | | Ten Cate NV | | | 1,356,003 | | | | 0.4 | |
| 504,676 | | | | | | Other Securities | | | 1,569,943 | | | | 0.5 | |
| | | | | | | | | | 8,349,240 | | | | 2.7 | |
| |
See Accompanying Notes to Financial Statements
174
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL
SMALLCAP MULTI-MANAGER FUND
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| Value
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| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 84,353 | | | | | | Fletcher Building Ltd. | | $ | 450,736 | | | | 0.1 | |
| 328,324 | | | | | | Fletcher Building Ltd. | | | 1,750,768 | | | | 0.6 | |
| | | | | | | | | | 2,201,504 | | | | 0.7 | |
| |
| |
| 1,365,134 | | | | | | Other Securities | | | 3,800,033 | | | | 1.2 | |
| |
| |
| 1,375,131 | | | | | | Other Securities | | | 173,572 | | | | 0.1 | |
| |
| |
| 9,190 | | | | | | Other Securities | | | 194,648 | | | | 0.1 | |
| |
| |
| 160,702 | | | | | | Other Securities | | | 277,180 | | | | 0.1 | |
| |
| |
| 9,504 | | | | | | Other Securities | | | 71,549 | | | | 0.0 | |
| |
| |
| 120,000 | | | | | | Other Securities | | | 577,291 | | | | 0.2 | |
| |
| |
| 2,027,000 | | | | @ | | Biosensors International Group Ltd. | | | 2,259,624 | | | | 0.8 | |
| 1,183,000 | | | | | | First Resources Ltd. | | | 1,324,501 | | | | 0.4 | |
| 239,618 | | | | @ | | Flextronics International Ltd. | | | 1,573,092 | | | | 0.5 | |
| 10,025,176 | | | | | | Other Securities | | | 6,494,535 | | | | 2.1 | |
| | | | | | | | | | 11,651,752 | | | | 3.8 | |
| |
| |
| 78,314 | | | | | | Other Securities | | | 301,084 | | | | 0.1 | |
| |
| |
| 43,010 | | | | | | Hankook Tire Co. Ltd | | | 1,716,707 | | | | 0.6 | |
| 7,920 | | | | | | Mando Corp. | | | 1,356,547 | | | | 0.4 | |
| 27,051 | | | | | | SeAH Steel Corp. | | | 2,001,605 | | | | 0.6 | |
| 550,101 | | | | | | Other Securities | | | 6,396,450 | | | | 2.1 | |
| | | | | | | | | | 11,471,309 | | | | 3.7 | |
| |
| |
| 47,490 | | | | | | Other Securities | | | 769,348 | | | | 0.3 | |
| |
| |
| 893,894 | | | | | | Other Securities | | | 4,319,554 | | | | 1.4 | |
| |
| |
| 3,834 | | | | | | Forbo Holding AG | | | 1,811,858 | | | | 0.6 | |
| 40,000 | | | | @ | | Gategroup Holding AG | | | 1,357,721 | | | | 0.4 | |
| 4,430 | | | | | | Helvetia Holding AG | | | 1,618,633 | | | | 0.5 | |
| 7,057 | | | | | | Valora Holding AG | | | 1,465,643 | | | | 0.5 | |
| 125,520 | | | | | | Other Securities | | | 4,846,201 | | | | 1.6 | |
| | | | | | | | | | 11,100,056 | | | | 3.6 | |
| |
| |
COMMON STOCK: (continued) |
| |
| 9,207,544 | | | | | | Other Securities | | $ | 3,671,796 | | | | 1.2 | |
| |
| |
| 10,401,100 | | | | | | Other Securities | | | 2,489,764 | | | | 0.8 | |
| |
| |
| 282,648 | | | | | | Other Securities | | | 423,734 | | | | 0.1 | |
| |
| United Arab Emirates: 0.3% |
| 200,000 | | | | | | Other Securities | | | 775,296 | | | | 0.3 | |
| |
| |
| 169,079 | | | | | | Davis Service Group PLC | | | 1,259,706 | | | | 0.4 | |
| 70,000 | | | | | | DCC Group PLC | | | 1,965,023 | | | | 0.6 | |
| 302,895 | | | | | | Drax Group PLC | | | 2,636,716 | | | | 0.9 | |
| 254,900 | | | | | | Investec PLC | | | 1,543,969 | | | | 0.5 | |
| 60,000 | | | | | | Kier Group PLC | | | 1,353,368 | | | | 0.5 | |
| 662,839 | | | | | | Senior Plc | | | 1,767,361 | | | | 0.6 | |
| 27,206,911 | | | | | | Other Securities | | | 40,732,478 | | | | 13.2 | |
| | | | | | | | | | 51,258,621 | | | | 16.7 | |
| |
| |
| 467,291 | | | | | | Other Securities | | | 1,338,955 | | | | 0.4 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $297,895,322) | | | 300,770,968 | | | | 97.8 | |
| |
RIGHTS: 0.0% |
| |
| 37,500 | | | | | | Other Securities | | | 12,795 | | | | 0.0 | |
| |
| |
| 1,618 | | | | | | Other Securities | | | 5,261 | | | | 0.0 | |
| |
| | | | | | | Total Rights | | | | | | | | |
| | | | | | | (Cost $—) | | | 18,056 | | | | 0.0 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $297,345,334) | | | 300,789,024 | | | | 97.8 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 0.5% |
| Securities Lending Collateralcc(1): 0.1% |
285,403 | | | | | | BNP Paribas Bank, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $285,403, collateralized by various U.S. Government Agency Obligations,3.500%–6.500%, Market Value plus accrued interest $291,111, due 07/01/20–11/01/41)
(Cost $285,403) | | | 285,403 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
175
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL
SMALLCAP MULTI-MANAGER FUND
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| Value
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| Percentage
of Net
Assets
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| |
SHORT-TERM INVESTMENTS: (continued) |
| |
| 1,305,820 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $1,305,820) | | $ | 1,305,820 | | | | 0.4 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $1,591,223) | | | 1,591,223 | | | | 0.5 | |
| |
| | | | | | | Total Investments in Securities
(Cost $298,936,557) | | $ | 302,380,247 | | | | 98.3 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 5,288,720 | | | | 1.7 | |
| | | | | | | Net Assets | | $ | 307,668,967 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| @ | | Non-income producing security |
| cc | | Securities purchased with cash collateral for securities loaned. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | Cost for federal income tax purposes is $300,837,453. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 50,894,512 | |
| Gross Unrealized Depreciation | | | | | (49,351,718 | ) |
| Net Unrealized appreciation | | | | $ | 1,542,794 | |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 18.0 | % |
| Consumer Staples | | | | | 6.6 | |
| Energy | | | | | 5.2 | |
| Financials | | | | | 11.7 | |
| Health Care | | | | | 5.8 | |
| Industrials | | | | | 24.3 | |
| Information Technology | | | | | 9.1 | |
| Materials | | | | | 13.7 | |
| Telecommunications | | | | | 1.8 | |
| Utilities | | | | | 1.6 | |
| Short-Term Investments | | | | | 0.5 | |
| Assets in Excess of Other Liabilities | | | | | 1.7 | |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | 100,823 | | | $ | 23,191,192 | | | $ | — | | | $ | 23,292,015 | |
| Austria | | | | | — | | | | 4,163,241 | | | | — | | | | 4,163,241 | |
| Belgium | | | | | 50 | | | | 4,101,313 | | | | — | | | | 4,101,363 | |
| Bermuda | | | | | 46,372 | | | | — | | | | — | | | | 46,372 | |
| Brazil | | | | | 2,329,650 | | | | — | | | | — | | | | 2,329,650 | |
| Canada | | | | | 11,805,104 | | | | — | | | | — | | | | 11,805,104 | |
| China | | | | | 2,544,769 | | | | 6,255,888 | | | | 72,077 | | | | 8,872,734 | |
| Denmark | | | | | 810,663 | | | | 2,804,752 | | | | — | | | | 3,615,415 | |
| Egypt | | | | | — | | | | 31,376 | | | | — | | | | 31,376 | |
| Finland | | | | | — | | | | 182,371 | | | | — | | | | 182,371 | |
| France | | | | | 1,027,354 | | | | 13,146,661 | | | | — | | | | 14,174,015 | |
| Germany | | | | | 843,568 | | | | 22,578,532 | | | | — | | | | 23,422,100 | |
| Guernsey | | | | | 35,167 | | | | — | | | | — | | | | 35,167 | |
| Hong Kong | | | | | 27,645 | | | | 10,734,827 | | | | 62,778 | | | | 10,825,250 | |
| India | | | | | — | | | | 2,542,877 | | | | — | | | | 2,542,877 | |
| Indonesia | | | | | — | | | | 1,421,515 | | | | — | | | | 1,421,515 | |
| Ireland | | | | | 1,448,457 | | | | 1,373,603 | | | | — | | | | 2,822,060 | |
| Israel | | | | | — | | | | 914,330 | | | | — | | | | 914,330 | |
| Italy | | | | | 393,399 | | | | 7,709,824 | | | | — | | | | 8,103,223 | |
| Japan | | | | | 18,080 | | | | 60,623,469 | | | | — | | | | 60,641,549 | |
| Malaysia | | | | | — | | | | 2,082,108 | | | | — | | | | 2,082,108 | |
| Mexico | | | | | 130,847 | | | | — | | | | — | | | | 130,847 | |
| Netherlands | | | | | 75,775 | | | | 8,273,465 | | | | — | | | | 8,349,240 | |
| New Zealand | | | | | — | | | | 2,201,504 | | | | — | | | | 2,201,504 | |
See Accompanying Notes to Financial Statements
176
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL
SMALLCAP MULTI-MANAGER FUND
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
| Norway | | | | $ | 605,448 | | | $ | 3,194,585 | | | $ | — | | | $ | 3,800,033 | |
| Pakistan | | | | | — | | | | 173,572 | | | | — | | | | 173,572 | |
| Philippines | | | | | — | | | | 194,648 | | | | — | | | | 194,648 | |
| Poland | | | | | — | | | | 277,180 | | | | — | | | | 277,180 | |
| Portugal | | | | | — | | | | 71,549 | | | | — | | | | 71,549 | |
| Russia | | | | | — | | | | 577,291 | | | | — | | | | 577,291 | |
| Singapore | | | | | 1,616,672 | | | | 10,035,080 | | | | — | | | | 11,651,752 | |
| South Africa | | | | | — | | | | 301,084 | | | | — | | | | 301,084 | |
| South Korea | | | | | 106,553 | | | | 11,321,181 | | | | 43,575 | | | | 11,471,309 | |
| Spain | | | | | — | | | | 769,348 | | | | — | | | | 769,348 | |
| Sweden | | | | | — | | | | 4,319,554 | | | | — | | | | 4,319,554 | |
| Switzerland | | | | | 1,122,842 | | | | 9,977,214 | | | | — | | | | 11,100,056 | |
| Taiwan | | | | | 92,275 | | | | 3,579,521 | | | | — | | | | 3,671,796 | |
| Thailand | | | | | — | | | | 2,489,764 | | | | — | | | | 2,489,764 | |
| Turkey | | | | | — | | | | 423,734 | | | | — | | | | 423,734 | |
| United Arab Emirates | | | | | — | | | | 775,296 | | | | — | | | | 775,296 | |
| United Kingdom | | | | | 3,514,712 | | | | 47,743,909 | | | | — | | | | 51,258,621 | |
| United States | | | | | 1,338,955 | | | | — | | | | — | | | | 1,338,955 | |
| Total Common Stock | | | | | 30,035,180 | | | | 270,557,358 | | | | 178,430 | | | | 300,770,968 | |
| Rights | | | | | — | | | | 18,056 | | | | — | | | | 18,056 | |
| Short-Term Investments | | | | | 1,305,820 | | | | 285,403 | | | | — | | | | 1,591,223 | |
| Total Investments, at value | | | | $ | 31,341,000 | | | $ | 270,860,317 | | | $ | 178,430 | | | $ | 302,380,247 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | | — | | | | 1,870 | | | | — | | | | 1,870 | |
| Total Assets | | | | $ | 31,341,000 | | | $ | 270,862,687 | | | $ | 178,430 | | | $ | 302,382,117 | |
Liabilities Table | | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | $ | — | | | $ | (13,635 | ) | | $ | — | | | $ | (13,635 | ) |
| Total Liabilities | | | | $ | — | | | $ | (13,635 | ) | | $ | — | | | $ | (13,635 | ) |
| | | | | | | | | | | | | | | | | | | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | 46,547 | | | $ | 1,261,533 | | | $ | — | | | $ | — | | | $ | — | | | $ | (1,198,860 | ) | | $ | 69,210 | | | $ | — | | | $ | 178,430 | |
| Short-Term Investments | | | | | 63,757 | | | | — | | | | (63,757 | ) | | | — | | | | (15,939 | ) | | | 15,939 | | | | — | | | | — | | | | — | |
| Total Investments, at value | | | | $ | 110,304 | | | $ | 1,261,533 | | | $ | (63,757 | ) | | $ | — | | | $ | (15,939 | ) | | $ | (1,182,921 | ) | | $ | 69,210 | | | $ | — | | | $ | 178,430 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $(1,198,860).
See Accompanying Notes to Financial Statements
177
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL
SMALLCAP MULTI-MANAGER FUND
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
At October 31, 2011 , the following forward foreign currency contracts were outstanding for the ING International SmallCap Multi-Manager Fund:
Counterparty
| | | | Currency
| | Contract
Amount
| | Buy/Sell
| | Settlement
Date
| | In Exchange For
| | Fair Value
| | Unrealized
Appreciation
(Depreciation)
|
|---|
| The Bank of New York Mellon Corp. | | | | Australian Dollar | | 620,821 | | Buy | | 11/03/11 | | $ | 665,856 | | | $ | 654,043 | | | $ | (11,813 | ) |
| Brown Brothers Harriman | | | | Polish Zloty | | 152,793 | | Buy | | 11/03/11 | | | 49,843 | | | | 48,021 | | | | (1,822 | ) |
| | | | | | | | | | | | | | | | | | | | | $ | (13,635 | ) |
| Brown Brothers Harriman | | | | EU Euro | | 58,255 | | Sell | | 11/03/11 | | $ | 82,475 | | | $ | 80,605 | | | $ | 1,870 | |
| | | | | | | | | | | | | | | | | | | | | $ | 1,870 | |
A summary of derivative instruments by primary risk exposure is outlined in the following tables.
The fair value of derivative instruments as of October 31, 2011 was as follows:
Derivatives not accounted for as
hedging instruments
| | | | Location on Statement
of Assets and Liabilities
| | Fair Value
|
|---|
Asset Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized appreciation on forward foreign currency contracts | | $ | 1,870 | |
Total Asset Derivatives | | | | | | $ | 1,870 | |
Liability Derivatives | | | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized depreciation on forward foreign currency contracts | | $ | 13,635 | |
Total Liability Derivatives | | | | | | $ | 13,635 | |
The effect of derivative instruments on the Fund’s Statement of Operations for the period ended October 31, 2011 was as follows:
| | | | Amount of Realized Gain or (Loss)
on Derivatives Recognized in Income |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Foreign currency
related transactions*
|
|---|
| Foreign exchange contracts | | | | $ | (171,337 | ) |
Total | | | | $ | (171,337 | ) |
| | | | Change in Unrealized Appreciation
or (Depreciation) on Derivatives
Recognized in Income |
|---|
Derivatives not accounted for as
hedging instruments
| | | | Foreign currency
related transactions*
|
|---|
| Foreign exchange contracts | | | | $ | (11,765 | ) |
Total | | | | $ | (11,765 | ) |
| * | | Amounts recognized for forward foreign currency contracts are included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign currency related transactions. |
See Accompanying Notes to Financial Statements
178
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL
VALUE CHOICE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 98.6% |
| |
| 232,116 | | | | | | Alumina Ltd. | | $ | 353,584 | | | | 1.2 | |
| 17,235 | | | | | | Newcrest Mining Ltd. | | | 609,114 | | | | 2.0 | |
| | | | | | | | | | 962,698 | | | | 3.2 | |
| |
| |
| 19,325 | | | | | | Belgacom S.A. | | | 584,365 | | | | 2.0 | |
| |
| |
| 36,147 | | | | | | Centrais Eletricas Brasileiras SA ADR | | | 504,251 | | | | 1.7 | |
| |
| |
| 21,599 | | | | | | Barrick Gold Corp. | | | 1,069,151 | | | | 3.6 | |
| 37,347 | | | | | | Cameco Corp. | | | 800,346 | | | | 2.7 | |
| 48,934 | | | | | | Kinross Gold Corp. | | | 702,203 | | | | 2.3 | |
| 39,049 | | | | | | Nexen, Inc. | | | 663,052 | | | | 2.2 | |
| 6,593 | | | | | | Niko Resources | | | 362,673 | | | | 1.2 | |
| 22,225 | | | | | | Talisman Energy, Inc. | | | 315,595 | | | | 1.1 | |
| | | | | | | | | | 3,913,020 | | | | 13.1 | |
| |
| |
| 104,439 | | | | | | Nokia OYJ ADR | | | 702,874 | | | | 2.4 | |
| |
| |
| 8,470 | | | | | | Alstom | | | 315,406 | | | | 1.1 | |
| 23,225 | | | | | | Carrefour S.A. | | | 614,487 | | | | 2.1 | |
| 15,000 | | | | | | Electricite de France SA | | | 448,914 | | | | 1.5 | |
| 12,227 | | | | | | Sanofi-Aventis | | | 874,708 | | | | 2.9 | |
| 17,387 | | | | | | Thales S.A. | | | 613,190 | | | | 2.0 | |
| 15,822 | | | | | | Other Securities | | | 459,108 | | | | 1.5 | |
| | | | | | | | | | 3,325,813 | | | | 11.1 | |
| |
| |
| 4,622 | | | | | | Allianz AG | | | 514,254 | | | | 1.7 | |
| 4,676 | | | | | | Siemens AG | | | 490,142 | | | | 1.7 | |
| | | | | | | | | | 1,004,396 | | | | 3.4 | |
| |
| |
| 8,941 | | | | | | Telekomunikasi Indonesia Tbk PT ADR | | | 302,206 | | | | 1.0 | |
| |
| |
| 722,344 | | | | | | Telecom Italia S.p.A. RNC | | | 758,069 | | | | 2.5 | |
| |
| |
| 108,390 | | | | | | Chuo Mitsui Trust Holdings, Inc. | | | 370,924 | | | | 1.3 | |
| 29,800 | | | | | | Coca-Cola West Co., Ltd. | | | 532,195 | | | | 1.8 | |
| 74,000 | | | | | | Dai Nippon Printing Co., Ltd. | | | 775,108 | | | | 2.6 | |
| 22,300 | | | | | | Fuji Photo Film Co., Ltd. | | | 545,775 | | | | 1.8 | |
| 49,000 | | | | | | Japan Steel Works Ltd. | | | 335,798 | | | | 1.1 | |
| 12,800 | | | | | | Mabuchi Motor Co., Ltd. | | | 561,007 | | | | 1.9 | |
| 33,500 | | | | | | Mitsui Sumitomo Insurance Group Holdings, Inc. | | | 656,143 | | | | 2.2 | |
| |
COMMON STOCK: (continued) |
| |
| 2,800 | | | | | | Nintendo Co., Ltd. | | $ | 422,438 | | | | 1.4 | |
| 36,950 | | | | | | Nippon Telegraph & Telephone Corp. ADR | | | 947,768 | | | | 3.2 | |
| 30,700 | | | | | | Panasonic Corp. | | | 310,349 | | | | 1.0 | |
| 8,400 | | | | | | Rohm Co., Ltd. | | | 427,992 | | | | 1.4 | |
| 7,800 | | | | | | Sankyo Co., Ltd. | | | 407,603 | | | | 1.4 | |
| 46,000 | | | | | | Sekisui House Ltd. | | | 411,776 | | | | 1.4 | |
| 18,000 | | | | | | Seven & I Holdings Co., Ltd. | | | 480,343 | | | | 1.6 | |
| 30,000 | | | | | | Shiseido Co., Ltd. | | | 549,101 | | | | 1.8 | |
| 6,410 | | | | | | Toyota Motor Corp. ADR | | | 427,611 | | | | 1.4 | |
| 36,000 | | | | | | Wacoal Holdings Corp. | | | 425,289 | | | | 1.4 | |
| 20,300 | | | | | | Other Securities | | | 543,488 | | | | 1.8 | |
| | | | | | | | | | 9,130,708 | | | | 30.5 | |
| |
| |
| 59,301 | | | | | | TNT Express NV | | | 503,143 | | | | 1.7 | |
| 25,683 | | | | | | Wolters Kluwer NV | | | 453,175 | | | | 1.5 | |
| | | | | | | | | | 956,318 | | | | 3.2 | |
| |
| |
| 623,957 | | | | | | Other Securities | | | 278,093 | | | | 0.9 | |
| |
| |
| 48,101 | | | | | | Gazprom OAO ADR | | | 561,339 | | | | 1.9 | |
| |
| |
| 16,892 | | | | | | AngloGold Ashanti Ltd ADR | | | 763,687 | | | | 2.5 | |
| 35,536 | | | | | | Gold Fields Ltd. | | | 615,995 | | | | 2.1 | |
| | | | | | | | | | 1,379,682 | | | | 4.6 | |
| |
| |
| 49,218 | | | | | | Korea Electric Power Corp. ADR | | | 542,875 | | | | 1.8 | |
| 57,022 | | | | | | SK Telecom Co., Ltd. ADR | | | 843,355 | | | | 2.8 | |
| | | | | | | | | | 1,386,230 | | | | 4.6 | |
| |
| |
| 36,000 | | | | @ | | UBS AG | | | 454,320 | | | | 1.5 | |
| |
| |
| 16,331 | | | | | | AstraZeneca PLC | | | 784,037 | | | | 2.6 | |
| 34,859 | | | | | | GlaxoSmithKline PLC | | | 782,317 | | | | 2.6 | |
| 92,452 | | | | @ | | Polyus Gold International Ltd. GDR | | | 303,520 | | | | 1.0 | |
| 226,352 | | | | | | Vodafone Group PLC | | | 628,507 | | | | 2.1 | |
| 156,749 | | | | | | Other Securities | | | 252,933 | | | | 0.9 | |
| | | | | | | | | | 2,751,314 | | | | 9.2 | |
| |
| |
| 16,974 | | | | | | Axis Capital Holdings Ltd. | | | 532,135 | | | | 1.8 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $30,719,750) | | | 29,487,831 | | | | 98.6 | |
See Accompanying Notes to Financial Statements
179
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL
VALUE CHOICE FUND
Shares
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 1.2% |
| |
| 370,028 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $370,028) | | $ | 370,028 | | | | 1.2 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $370,028) | | | 370,028 | | | | 1.2 | |
| |
| | | | | | | Total Investments in Securities
(Cost $31,089,778) | | $ | 29,857,859 | | | | 99.8 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 64,926 | | | | 0.2 | |
| | | | | | | Net Assets | | $ | 29,922,785 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| GDR | | Global Depository Receipt |
| | Cost for federal income tax purposes is $32,305,312. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 2,604,859 | |
| Gross Unrealized Depreciation | | | | | (5,052,312 | ) |
| Net Unrealized depreciation | | | | $ | (2,447,453 | ) |
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 9.0 | % |
| Consumer Staples | | | | | 8.2 | |
| Energy | | | | | 10.0 | |
| Financials | | | | | 9.1 | |
| Health Care | | | | | 9.0 | |
| Industrials | | | | | 13.0 | |
| Information Technology | | | | | 7.0 | |
| Materials | | | | | 14.7 | |
| Telecommunications | | | | | 13.6 | |
| Utilities | | | | | 5.0 | |
| Short-Term Investments | | | | | 1.2 | |
| Assets in Excess of Other Liabilities | | | | | 0.2 | |
Net Assets | | | | | 100.0 | % |
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 962,698 | | | $ | — | | | $ | 962,698 | |
| Belgium | | | | | — | | | | 584,365 | | | | — | | | | 584,365 | |
| Brazil | | | | | 504,251 | | | | — | | | | — | | | | 504,251 | |
| Canada | | | | | 3,913,020 | | | | — | | | | — | | | | 3,913,020 | |
| Finland | | | | | 702,874 | | | | — | | | | — | | | | 702,874 | |
| France | | | | | — | | | | 3,325,813 | | | | — | | | | 3,325,813 | |
| Germany | | | | | — | | | | 1,004,396 | | | | — | | | | 1,004,396 | |
| Indonesia | | | | | 302,206 | | | | — | | | | — | | | | 302,206 | |
| Italy | | | | | — | | | | 758,069 | | | | — | | | | 758,069 | |
| Japan | | | | | 1,375,379 | | | | 7,755,329 | | | | — | | | | 9,130,708 | |
| Netherlands | | | | | — | | | | 956,318 | | | | — | | | | 956,318 | |
| Norway | | | | | — | | | | 278,093 | | | | — | | | | 278,093 | |
| Russia | | | | | 561,339 | | | | — | | | | — | | | | 561,339 | |
| South Africa | | | | | 763,687 | | | | 615,995 | | | | — | | | | 1,379,682 | |
| South Korea | | | | | 1,386,230 | | | | — | | | | — | | | | 1,386,230 | |
| Switzerland | | | | | 454,320 | | | | — | | | | — | | | | 454,320 | |
| United Kingdom | | | | | 303,520 | | | | 2,447,794 | | | | — | | | | 2,751,314 | |
| United States | | | | | 532,135 | | | | — | | | | — | | | | 532,135 | |
| Total Common Stock | | | | | 10,798,961 | | | | 18,688,870 | | | | — | | | | 29,487,831 | |
| Short-Term Investments | | | | | 370,028 | | | | — | | | | — | | | | 370,028 | |
| Total Investments, at value | | | | $ | 11,168,989 | | | $ | 18,688,870 | | | $ | — | | | $ | 29,857,859 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
180
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL
VALUE CHOICE FUND
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
See Accompanying Notes to Financial Statements
181
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING INTERNATIONAL VALUE FUND
Shares
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|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 100.7% |
| |
| 192,758 | | | | | | National Australia Bank Ltd. | | $ | 5,148,437 | | | | 0.7 | |
| 163,217 | | | | | | Other Securities | | | 3,787,641 | | | | 0.6 | |
| | | | | | | | | | 8,936,078 | | | | 1.3 | |
| |
| |
| 155,829 | | | | | | Other Securities | | | 4,712,084 | | | | 0.7 | |
| |
| |
| 333,792 | | | | | | Banco do Brasil S.A. | | | 5,093,835 | | | | 0.7 | |
| 672,633 | | | | | | Other Securities | | | 11,683,703 | | | | 1.7 | |
| | | | | | | | | | 16,777,538 | | | | 2.4 | |
| |
| |
| 175,500 | | | | | | Barrick Gold Corp. | | | 8,687,250 | | | | 1.2 | |
| 454,900 | | | | | | Other Securities | | | 13,146,476 | | | | 1.9 | |
| | | | | | | | | | 21,833,726 | | | | 3.1 | |
| |
| |
| 13,346,000 | | | | | | Huaneng Power International, Inc. | | | 6,035,932 | | | | 0.9 | |
| 5,356,000 | | | | | | Other Securities | | | 6,372,987 | | | | 0.9 | |
| | | | | | | | | | 12,408,919 | | | | 1.8 | |
| |
| |
| 854,449 | | | | | | Nokia OYJ | | | 5,749,743 | | | | 0.8 | |
| 676,532 | | | | | | Other Securities | | | 7,905,163 | | | | 1.1 | |
| | | | | | | | | | 13,654,906 | | | | 1.9 | |
| |
| |
| 154,276 | | | | | | Accor S.A. | | | 5,042,352 | | | | 0.7 | |
| 75,271 | | | | | | Cie Generale des Etablissements Michelin | | | 5,450,389 | | | | 0.8 | |
| 339,035 | | | | | | France Telecom S.A. | | | 6,095,452 | | | | 0.9 | |
| 228,904 | | | | | | Sanofi-Aventis | | | 16,375,571 | | | | 2.3 | |
| 251,363 | | | | | | Total S.A. | | | 13,115,429 | | | | 1.9 | |
| 2,355,736 | | | | | | Other Securities | | | 23,390,113 | | | | 3.3 | |
| | | | | | | | | | 69,469,306 | | | | 9.9 | |
| |
| |
| 196,888 | | | | | | Deutsche Bank AG | | | 8,141,036 | | | | 1.2 | |
| 331,100 | | | | | | Deutsche Post AG | | | 5,022,296 | | | | 0.7 | |
| 720,285 | | | | | | Deutsche Telekom AG | | | 9,150,597 | | | | 1.3 | |
| 86,081 | | | | | | SAP AG | | | 5,205,141 | | | | 0.7 | |
| 94,265 | | | | | | Siemens AG | | | 9,880,941 | | | | 1.4 | |
| 455,754 | | | | | | Other Securities | | | 20,015,635 | | | | 2.9 | |
| | | | | | | | | | 57,415,646 | | | | 8.2 | |
| |
| |
| 7,002,000 | | | | | | Other Securities | | | 3,890,469 | | | | 0.6 | |
| |
| |
| 203,218 | | | | | | Other Securities | | | 3,676,743 | | | | 0.5 | |
| |
| |
| 101,400 | | | | | | Other Securities | | | 4,142,190 | | | | 0.6 | |
| |
COMMON STOCK: (continued) |
| |
| 548,556 | | | | | | ENI S.p.A. | | $ | 12,125,235 | | | | 1.7 | |
| 3,244,737 | | | | | | Intesa Sanpaolo S.p.A. | | | 5,726,968 | | | | 0.8 | |
| 11,061,821 | | | | | | Telecom Italia S.p.A. RNC | | | 11,608,912 | | | | 1.7 | |
| 1,505,846 | | | | | | Other Securities | | | 6,954,744 | | | | 1.0 | |
| | | | | | | | | | 36,415,859 | | | | 5.2 | |
| |
| |
| 788,000 | | | | | | Dai Nippon Printing Co., Ltd. | | | 8,253,851 | | | | 1.2 | |
| 378,900 | | | | | | Fuji Photo Film Co., Ltd. | | | 9,273,274 | | | | 1.3 | |
| 1,275,000 | | | | | | Hitachi Ltd. | | | 6,831,816 | | | | 1.0 | |
| 1,034 | | | | | | Inpex Holdings, Inc. | | | 6,826,552 | | | | 1.0 | |
| 216,700 | | | | | | Komatsu Ltd. | | | 5,357,867 | | | | 0.8 | |
| 115,700 | | | | | | Mabuchi Motor Co., Ltd. | | | 5,070,976 | | | | 0.7 | |
| 115,600 | | | | | | Nippon Telegraph & Telephone Corp. | | | 5,929,799 | | | | 0.8 | |
| 631,300 | | | | | | Nissan Motor Co., Ltd. | | | 5,804,645 | | | | 0.8 | |
| 3,093 | | | | | | NTT DoCoMo, Inc. | | | 5,493,301 | | | | 0.8 | |
| 127,300 | | | | | | Rohm Co., Ltd. | | | 6,486,121 | | | | 0.9 | |
| 514,700 | | | | | | Seven & I Holdings Co., Ltd. | | | 13,735,152 | | | | 1.9 | |
| 309,100 | | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 8,639,817 | | | | 1.2 | |
| 112,100 | | | | | | Takeda Pharmaceutical Co., Ltd. | | | 5,053,624 | | | | 0.7 | |
| 381,400 | | | | | | Tokio Marine Holdings, Inc. | | | 9,094,287 | | | | 1.3 | |
| 100,600 | | | | | | Tokyo Electron Ltd. | | | 5,350,259 | | | | 0.8 | |
| 5,497,028 | | | | | | Other Securities | | | 61,087,007 | | | | 8.7 | |
| | | | | | | | | | 168,288,348 | | | | 23.9 | |
| |
| |
| 82,429 | | | | | | Other Securities | | | 1,709,002 | | | | 0.2 | |
| |
| |
| 115,600 | | | | | | Other Securities | | | 2,938,552 | | | | 0.4 | |
| |
| |
| 377,152 | | | | | | Royal Dutch Shell PLC — Class A | | | 13,360,478 | | | | 1.9 | |
| 146,906 | | | | | | Royal Dutch Shell PLC — Class B | | | 5,270,709 | | | | 0.8 | |
| 345,004 | | | | | | Unilever NV | | | 11,910,803 | | | | 1.7 | |
| 350,666 | | | | | | Wolters Kluwer NV | | | 6,187,486 | | | | 0.9 | |
| 1,720,333 | | | | | | Other Securities | | | 20,746,623 | | | | 2.9 | |
| | | | | | | | | | 57,476,099 | | | | 8.2 | |
| |
| |
| 1,515,478 | | | | | | Other Securities | | | 5,664,182 | | | | 0.8 | |
| |
| |
| 2,183,000 | | | | | | Other Securities | | | 11,583,520 | | | | 1.6 | |
| |
See Accompanying Notes to Financial Statements
182
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL VALUE FUND
Shares
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: (continued) |
| |
| 413,486 | | | | | | Other Securities | | $ | 10,040,448 | | | | 1.4 | |
| |
| |
| 366,195 | | | | | | Other Securities | | | 9,221,581 | | | | 1.3 | |
| |
| |
| 338,985 | | | | | | Indra Sistemas S.A. | | | 5,680,129 | | | | 0.8 | |
| 284,054 | | | | | | Telefonica S.A. | | | 6,036,606 | | | | 0.9 | |
| 487,341 | | | | | | Other Securities | | | 2,230,684 | | | | 0.3 | |
| | | | | | | | | | 13,947,419 | | | | 2.0 | |
| |
| |
| 584,055 | | | | | | Other Securities | | | 7,359,496 | | | | 1.0 | |
| |
| |
| 275,105 | | | | | | Novartis AG | | | 15,498,117 | | | | 2.2 | |
| 611,936 | | | | | | Other Securities | | | 15,637,573 | | | | 2.2 | |
| | | | | | | | | | 31,135,690 | | | | 4.4 | |
| |
| |
| 164,930 | | | | | | AstraZeneca PLC | | | 7,918,141 | | | | 1.1 | |
| 1,212,912 | | | | | | BAE Systems PLC | | | 5,378,825 | | | | 0.8 | |
| 190,787 | | | | | | BHP Billiton PLC | | | 6,007,777 | | | | 0.9 | |
| 1,077,081 | | | | | | BP PLC | | | 7,926,050 | | | | 1.1 | |
| 109,000 | | | | | | Ensco International PLC ADR | | | 5,412,940 | | | | 0.8 | |
| 496,090 | | | | | | GlaxoSmithKline PLC | | | 11,133,416 | | | | 1.6 | |
| 605,691 | | | | | | HSBC Holdings PLC | | | 5,284,835 | | | | 0.7 | |
| 1,423,859 | | | | | | Tesco PLC | | | 9,180,199 | | | | 1.3 | |
| 4,010,797 | | | | | | Vodafone Group PLC | | | 11,136,709 | | | | 1.6 | |
| 13,351,350 | | | | | | Other Securities | | | 52,303,886 | | | | 7.4 | |
| | | | | | | | | | 121,682,778 | | | | 17.3 | |
| |
| |
| 87,100 | | | | | | Newmont Mining Corp. | | | 5,820,893 | | | | 0.8 | |
| 268,434 | | | | | | Other Securities | | | 8,115,474 | | | | 1.2 | |
| | | | | | | | | | 13,936,367 | | | | 2.0 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $787,693,887) | | | 708,316,946 | | | | 100.7 | |
| |
PREFERRED STOCK: 0.5% |
| |
| 21,632 | | | | | | Other Securities | | | 3,767,207 | | | | 0.5 | |
| |
| | | | | | | Total Preferred Stock | | | | | | | | |
| | | | | | | (Cost $3,430,366) | | | 3,767,207 | | | | 0.5 | |
| |
| | | | | | | Total Long-Term Investments | | | | | | | | |
| | | | | | | (Cost $791,124,253) | | | 712,084,153 | | | | 101.2 | |
Principal
Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 0.8% |
| Securities Lending Collateralcc(1): 0.1% |
| 518,447 | | | | | | BNP Paribas Bank, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $518,447, collateralized by various U.S. Government Agency Obligations,3.500%–6.500%, Market Value plus accrued interest $528,816, due 07/01/20–11/01/41)
(Cost $518,447) | | $ | 518,447 | | | | 0.1 | |
Shares
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
| 5,102,347 | | | | | | BlackRock Liquidity Funds, TempFund, Institutional Class
(Cost $5,102,347) | | | 5,102,347 | | | | 0.7 | |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $5,620,794) | | | 5,620,794 | | | | 0.8 | |
| |
| | | | | | | Total Investments in Securities
(Cost $796,745,047) | | $ | 717,704,947 | | | | 102.0 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (13,924,453 | ) | | | (2.0 | ) |
| | | | | | | Net Assets | | $ | 703,780,494 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| ADR | | American Depository Receipt |
| cc | | Securities purchased with cash collateral for securities loaned. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | Cost for federal income tax purposes is $814,443,065. |
| Net unrealized depreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 51,557,351 | |
| Gross Unrealized Depreciation | | | | | (148,295,469 | ) |
| Net Unrealized depreciation | | | | $ | (96,738,118 | ) |
See Accompanying Notes to Financial Statements
183
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL VALUE FUND
Sector Diversification
| | | | Percentage
of Net Assets
|
|---|
| Consumer Discretionary | | | | | 7.7 | % |
| Consumer Staples | | | | | 10.0 | |
| Energy | | | | | 11.3 | |
| Financials | | | | | 18.9 | |
| Health Care | | | | | 10.1 | |
| Industrials | | | | | 8.8 | |
| Information Technology | | | | | 10.1 | |
| Materials | | | | | 8.1 | |
| Telecommunications | | | | | 12.3 | |
| Utilities | | | | | 3.9 | |
| Short-Term Investments | | | | | 0.8 | |
| Liabilities in Excess of Other Assets | | | | | (2.0 | ) |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 8,936,078 | | | $ | — | | | $ | 8,936,078 | |
| Belgium | | | | | — | | | | 4,712,084 | | | | — | | | | 4,712,084 | |
| Brazil | | | | | 16,777,538 | | | | — | | | | — | | | | 16,777,538 | |
| Canada | | | | | 21,833,726 | | | | — | | | | — | | | | 21,833,726 | |
| China | | | | | — | | | | 12,278,294 | | | | 130,625 | | | | 12,408,919 | |
| Finland | | | | | — | | | | 13,654,906 | | | | — | | | | 13,654,906 | |
| France | | | | | — | | | | 69,469,306 | | | | — | | | | 69,469,306 | |
| Germany | | | | | — | | | | 57,415,646 | | | | — | | | | 57,415,646 | |
| Hong Kong | | | | | — | | | | 3,191,500 | | | | 698,969 | | | | 3,890,469 | |
| Ireland | | | | | — | | | | 3,676,743 | | | | — | | | | 3,676,743 | |
| Israel | | | | | 4,142,190 | | | | — | | | | — | | | | 4,142,190 | |
| Italy | | | | | — | | | | 36,415,859 | | | | — | | | | 36,415,859 | |
| Japan | | | | | 1,906,370 | | | | 166,381,978 | | | | — | | | | 168,288,348 | |
| Luxembourg | | | | | — | | | | 1,709,002 | | | | — | | | | 1,709,002 | |
| Mexico | | | | | 2,938,552 | | | | — | | | | — | | | | 2,938,552 | |
| Netherlands | | | | | — | | | | 57,476,099 | | | | — | | | | 57,476,099 | |
| Portugal | | | | | — | | | | 5,664,182 | | | | — | | | | 5,664,182 | |
| Singapore | | | | | — | | | | 11,583,520 | | | | — | | | | 11,583,520 | |
| South Africa | | | | | — | | | | 10,040,448 | | | | — | | | | 10,040,448 | |
| South Korea | | | | | 3,836,400 | | | | 5,385,181 | | | | — | | | | 9,221,581 | |
| Spain | | | | | — | | | | 13,947,419 | | | | — | | | | 13,947,419 | |
| Sweden | �� | | | | — | | | | 7,359,496 | | | | — | | | | 7,359,496 | |
| Switzerland | | | | | — | | | | 31,135,690 | | | | — | | | | 31,135,690 | |
| United Kingdom | | | | | 9,897,210 | | | | 111,785,568 | | | | — | | | | 121,682,778 | |
| United States | | | | | 13,936,367 | | | | — | | | | — | | | | 13,936,367 | |
| Total Common Stock | | | | | 75,268,353 | | | | 632,218,999 | | | | 829,594 | | | | 708,316,946 | |
| Preferred Stock | | | | | — | | | | 3,767,207 | | | | — | | | | 3,767,207 | |
| Short-Term Investments | | | | | 5,102,347 | | | | 518,447 | | | | — | | | | 5,620,794 | |
| Total Investments, at value | | | | $ | 80,370,700 | | | $ | 636,504,653 | | | $ | 829,594 | | | $ | 717,704,947 | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
See Accompanying Notes to Financial Statements
184
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING INTERNATIONAL VALUE FUND
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | $ | — | | | $ | 5,038,969 | | | $ | (783,722 | ) | | $ | — | | | $ | (640,683 | ) | | $ | (2,915,595 | ) | | $ | 130,625 | | | $ | — | | | $ | 829,594 | |
| Short-Term Investments | | | | | 961,834 | | | | — | | | | (961,834 | ) | | | — | | | | (240,458 | ) | | | 240,458 | | | | — | | | | — | | | | — | |
| Total Investments, at value | | | | $ | 961,834 | | | $ | 5,038,969 | | | $ | (1,745,556 | ) | | $ | — | | | $ | (881,141 | ) | | $ | (2,675,137 | ) | | $ | 130,625 | | | $ | — | | | $ | 829,594 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $(2,915,595).
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
185
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011
ING RUSSIA FUND
Shares
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| Value
|
| Percentage
of Net
Assets
|
|---|
| |
COMMON STOCK: 95.6% |
| Consumer Discretionary: 0.9% |
| 186,200 | | | | | | CTC Media, Inc. | | $ | 2,143,162 | | | | 0.7 | |
| 908,634 | | | | @ | | RBC OJSC | | | 647,422 | | | | 0.2 | |
| | | | | | | | | | 2,790,584 | | | | 0.9 | |
| |
| |
| 172,300 | | | | | | Magnit OAO | | | 18,563,283 | | | | 5.6 | |
| 100,000 | | | | #, @ | | MHP SA GDR | | | 1,072,960 | | | | 0.3 | |
| 66,000 | | | | @ | | Synergy Co. | | | 1,534,742 | | | | 0.5 | |
| 152,400 | | | | @ | | X5 Retail Group N.V. GDR | | | 4,567,355 | | | | 1.4 | |
| | | | | | | | | | 25,738,340 | | | | 7.8 | |
| |
| |
| 77,900 | | | | L | | Eurasia Drilling Co. Ltd. GDR | | | 1,824,486 | | | | 0.6 | |
| 2,783,800 | | | | | | Gazprom OAO | | | 16,456,363 | | | | 5.0 | |
| 442,200 | | | | | | Lukoil-Spon | | | 25,736,040 | | | | 7.8 | |
| 175,200 | | | | | | NovaTek OAO GDR | | | 24,445,289 | | | | 7.4 | |
| 1,936,600 | | | | | | Rosneft Oil Co. GDR | | | 13,721,991 | | | | 4.2 | |
| 723,100 | | | | L | | Surgutneftegas OJSC ADR | | | 6,200,875 | | | | 1.9 | |
| 16,444,400 | | | | | | Surgutneftegas OJSC | | | 8,273,881 | | | | 2.5 | |
| 302,833 | | | | | | Tatneft ADR | | | 8,945,050 | | | | 2.7 | |
| 563,900 | | | | | | TNK-BP Holding | | | 1,537,286 | | | | 0.5 | |
| | | | | | | | | | 107,141,261 | | | | 32.6 | |
| |
| |
| 1,149,500 | | | | | | Bank St Petersburg OJSC | | | 4,343,147 | | | | 1.3 | |
| 1,041,480 | | | | | | LSR Group GDR | | | 4,936,766 | | | | 1.5 | |
| 190,700 | | | | #, @ | | Nomos — Bank GDR | | | 2,383,750 | | | | 0.7 | |
| 12,499,521 | | | | | | Sberbank of Russian Federation | | | 33,795,628 | | | | 10.3 | |
| 3,257,400 | | | | @ | | VTB Bank OJSC GDR | | | 15,569,493 | | | | 4.8 | |
| | | | | | | | | | 61,028,784 | | | | 18.6 | |
| |
| |
| 146,965 | | | | @ | | Pharmstandard — Reg S GDR | | | 2,610,354 | | | | 0.8 | |
| |
| |
| 1,659,400 | | | | | | Aeroflot — Russian Airlines OJSC | | | 3,090,253 | | | | 1.0 | |
| 120,000 | | | | | | Global Ports Investment Ltd. GDR | | | 1,920,000 | | | | 0.6 | |
| 4,247,469 | | | | | | Novorossiysk Commercial Sea Port PJSC | | | 448,150 | | | | 0.1 | |
| | | | | | | | | | 5,458,403 | | | | 1.7 | |
| |
| Information Technology: 0.9% |
| 90,600 | | | | @ | | Mail.ru Group Ltd. GDR | | | 3,099,510 | | | | 0.9 | |
| |
| |
COMMON STOCK: (continued) |
| |
| 34,000 | | | | | | Akron JSC | | $ | 1,407,435 | | | | 0.4 | |
| 100,000 | | | | L | | Mechel ADR | | | 517,000 | | | | 0.2 | |
| 630,700 | | | | L | | Mechel OAO ADR | | | 8,287,398 | | | | 2.5 | |
| 32,900 | | | | | | MMC Norilsk Nickel | | | 6,469,543 | | | | 2.0 | |
| 676,421 | | | | L | | MMC Norilsk Nickel ADR | | | 13,190,795 | | | | 4.0 | |
| 1,451,500 | | | | | | Novolipetsk Steel | | | 3,934,067 | | | | 1.2 | |
| 265,400 | | | | | | Petropavlovsk PLC | | | 3,123,903 | | | | 1.0 | |
| 497,600 | | | | @ | | Polymetal International PLC | | | 7,360,828 | | | | 2.2 | |
| 572,600 | | | | | | Raspadskaya | | | 1,894,115 | | | | 0.6 | |
| 341,200 | | | | | | Severstal OAO GDR | | | 4,983,326 | | | | 1.5 | |
| 100,000 | | | | @ | | Sibirskiy Cement OAO | | | 1,575,000 | | | | 0.5 | |
| 457,390 | | | | L | | Uralkali GDR | | | 19,709,786 | | | | 6.0 | |
| | | | | | | | | | 72,453,196 | | | | 22.1 | |
| |
| |
| 346,500 | | | | | | Mobile Telesystems OJSC ADR | | | 4,951,485 | | | | 1.5 | |
| 118,900 | | | | | | Mobile TeleSystems OJSC | | | 754,402 | | | | 0.2 | |
| 588,552 | | | | @ | | Rostelecom | | | 2,985,547 | | | | 0.9 | |
| 322,000 | | | | | | Sistema JSFC GDR | | | 5,482,078 | | | | 1.7 | |
| | | | | | | | | | 14,173,512 | | | | 4.3 | |
| |
| |
| 371,841,500 | | | | | | Federal Grid Co. Unified Energy System JSC | | | 3,460,019 | | | | 1.1 | |
| 35,749,700 | | | | @ | | IDGC Holding JSC | | | 3,331,138 | | | | 1.0 | |
| 20,000,000 | | | | | | Mosenergo OAO | | | 1,273,661 | | | | 0.4 | |
| 47,808,200 | | | | | | OGK-2 OAO | | | 1,594,379 | | | | 0.5 | |
| 185,198,748 | | | | @ | | RusHydro | | | 6,974,109 | | | | 2.1 | |
| 3,486,013,800 | | | | | | Territorial Generating Co. No 1 | | | 1,257,231 | | | | 0.4 | |
| | | | | | | | | | 17,890,537 | | | | 5.5 | |
| |
| | | | | | | Total Common Stock | | | | | | | | |
| | | | | | | (Cost $242,284,082) | | | 312,384,481 | | | | 95.2 | |
| |
Mutual Funds: 0.4% |
| |
| 190,141 | | | | @, X | | Renaissance Asset Managers Global Funds — Russian Power Utilities Fund | | | 1,296,952 | | | | 0.4 | |
| |
| | | | | | | Total Mutual Funds
(Cost $752,296) | | | 1,296,952 | | | | 0.4 | |
| |
| | | | | | | Total Long-Term Investments
(Cost $243,036,378) | | | 313,681,433 | | | | 95.6 | |
See Accompanying Notes to Financial Statements
186
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING RUSSIA FUND
Principal Amount†
|
|
|
|
|
|
|
| Value
|
| Percentage
of Net
Assets
|
|---|
| |
SHORT-TERM INVESTMENTS: 5.2% |
| Securities Lending Collateralcc(1): 5.2% |
4,063,390 | | | | | | Barclays Bank PLC, Repurchase Agreement dated 10/31/11, 0.10%, due 11/01/11 (Principal Amount $4,063,390, collateralized by various U.S. Government Agency Obligations, 0.000%–0.375%, Market Value plus accrued interest $4,144,662, due 11/21/11–10/30/13) | | $ | 4,063,390 | | | | 1.2 | |
4,063,390 | | | | | | Cantor Fitzgerald, Repurchase Agreement dated 10/31/11, 0.15%, due 11/01/11 (Principal Amount $4,063,390, collateralized by various U.S. Government Agency Obligations, 0.742%–6.579%, Market Value plus accrued interest $4,144,658, due 11/01/15–03/01/48) | | | 4,063,390 | | | | 1.3 | |
855,450 | | | | | | Deutsche Bank AG, Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $855,450, collateralized by various U.S. Government Agency Obligations, 1.750%–7.000%, Market Value plus accrued interest $872,559, due 07/01/12–10/01/41) | | | 855,450 | | | | 0.3 | |
| 4,063,390 | | | | | | Goldman Sachs & Co., Repurchase Agreement dated 10/31/11, 0.11%, due 11/01/11 (Principal Amount $4,063,390, collateralized by various U.S. Government Agency Obligations, 2.261%–7.000%, Market Value plus accrued interest $4,144,658, due 01/01/18–10/01/41) | | | 4,063,390 | | | | 1.2 | |
4,063,390 | | | | | | Merrill Lynch & Co., Inc., Repurchase Agreement dated 10/31/11, 0.12%, due 11/01/11 (Principal Amount $4,063,390, collateralized by various U.S. Government Agency Obligations, 3.000%–6.000%, Market Value plus accrued interest $4,144,939, due 09/01/21–11/01/41) | | | 4,063,390 | | | | 1.2 | |
| | | | | | | | | | 17,109,010 | | | | 5.2 | |
| |
SHORT-TERM INVESTMENTS: (continued) |
| Securities Lending Collateralcc(1): (continued) |
| |
| | | | | | | Total Short-Term Investments | | | | | | | | |
| | | | | | | (Cost $17,109,010) | | $ | 17,109,010 | | | | 5.2 | |
| |
| | | | | | | Total Investments in Securities
(Cost $260,145,388) | | $ | 330,790,443 | | | | 100.8 | |
| | | | | | | Liabilities in Excess of Other Assets | | | (2,545,490 | ) | | | (0.8 | ) |
| | | | | | | Net Assets | | $ | 328,244,953 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of October 31, 2011.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| † | | Unless otherwise indicated, principal amount is shown in USD. |
| # | | 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. |
| @ | | Non-income producing security |
| ADR | | American Depository Receipt |
| GDR | | Global Depository 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, 2011. |
| X | | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
| (1) | | Collateral received from brokers for securities lending was invested into these short-term investments. |
| | Cost for federal income tax purposes is $270,226,005. |
| Net unrealized appreciation consists of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 93,876,939 | |
| Gross Unrealized Depreciation | | | | | (33,312,501 | ) |
| Net Unrealized appreciation | | | | $ | 60,564,438 | |
See Accompanying Notes to Financial Statements
187
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF OCTOBER 31, 2011 (CONTINUED)
ING RUSSIA FUND
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
| | Significant
Other
Observable
Inputs#
(Level 2)
| | Significant
Unobservable
Inputs
(Level 3)
| | Fair Value
at
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Consumer Discretionary | | | | $ | 2,143,162 | | | $ | 647,422 | | | $ | — | | | $ | 2,790,584 | |
| Consumer Staples | | | | | 20,098,025 | | | | 5,640,315 | | | | — | | | | 25,738,340 | |
| Energy | | | | | 52,003,570 | | | | 55,137,691 | | | | — | | | | 107,141,261 | |
| Financials | | | | | 40,522,525 | | | | 20,506,259 | | | | — | | | | 61,028,784 | |
| Health Care | | | | | — | | | | 2,610,354 | | | | — | | | | 2,610,354 | |
| Industrials | | | | | 5,458,403 | | | | — | | | | — | | | | 5,458,403 | |
| Information Technology | | | | | — | | | | 3,099,510 | | | | — | | | | 3,099,510 | |
| Materials | | | | | 31,445,386 | | | | 41,007,810 | | | | — | | | | 72,453,196 | |
| Telecommunications | | | | | 4,951,485 | | | | 9,222,027 | | | | — | | | | 14,173,512 | |
| Utilities | | | | | 10,916,428 | | | | 6,974,109 | | | | — | | | | 17,890,537 | |
| Total Common Stock | | | | | 167,538,984 | | | | 144,845,497 | | | | — | | | | 312,384,481 | |
| Mutual Funds | | | | | — | | | | — | | | | 1,296,952 | | | | 1,296,952 | |
| Short-Term Investments | | | | | — | | | | 17,109,010 | | | | — | | | | 17,109,010 | |
| Total Investments, at value | | | | $ | 167,538,984 | | | $ | 161,954,507 | | | $ | 1,296,952 | | | $ | 330,790,443 | |
| | | | | | | | | | | | | | | | | | | |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Portfolio’s assets and liabilities during the period ended October 31, 2011:
| | | | Beginning
Balance
10/31/2010
| | Purchases
| | Sales
| | Accrued
Discounts/
(Premiums)
| | Total
Realized
Gain/(Loss)
| | Total Unrealized
Appreciation/
(Depreciation)
| | Transfers
Into
Level 3
| | Transfers
Out of
Level 3
| | Ending
Balance
10/31/2011
|
|---|
Asset Table | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments, at value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mutual Funds | | | | $ | 1,633,280 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (336,328 | ) | | $ | — | | | $ | — | | | $ | 1,296,952 | |
| Short-Term Investments | | | | | 673,158 | | | | — | | | | (673,158 | ) | | | — | | | | (168,690 | ) | | | 168,690 | | | | — | | | | — | | | | — | |
| Total Investments, at value | | | | $ | 2,306,438 | | | $ | — | | | $ | (673,158 | ) | | $ | — | | | $ | (168,690 | ) | | $ | (167,638 | ) | | $ | — | | | $ | — | | | $ | 1,296,952 | |
As of October 31, 2011, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $(336,328).
Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period.
See Accompanying Notes to Financial Statements
188
TAX INFORMATION (UNAUDITED)
Dividends and distributions paid during the year ended October 31, 2011 were as follows:
Fund Name
| | | | Type
| | Per Share Amount
|
|---|
| ING Diversified International Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.0816 | |
| Class B | | | | | NII | | | $ | 0.0039 | |
| Class C | | | | | NII | | | $ | 0.0068 | |
| Class I | | | | | NII | | | $ | 0.1101 | |
| Class O | | | | | NII | | | $ | 0.0943 | |
| Class R | | | | | NII | | | $ | 0.0620 | |
| Class W | | | | | NII | | | $ | 0.1132 | |
| All Classes | | | | | ROC | | | $ | 0.0097 | |
| ING Emerging Countries Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.0006 | |
| Class B | | | | | NII | | | $ | 0.0006 | |
| Class C | | | | | NII | | | $ | 0.0006 | |
| Class I | | | | | NII | | | $ | 0.0446 | |
| Class W | | | | | NII | | | $ | 0.0325 | |
| ING Global Bond Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.5943 | |
| Class B | | | | | NII | | | $ | 0.5046 | |
| Class C | | | | | NII | | | $ | 0.5058 | |
| Class I | | | | | NII | | | $ | 0.6347 | |
| Class O | | | | | NII | | | $ | 0.5949 | |
| Class R | | | | | NII | | | $ | 0.1111 | |
| Class W | | | | | NII | | | $ | 0.6238 | |
| All Classes, except Class R | | | | | STCG | | | $ | 0.1121 | |
| Class R | | | | | STCG | | | $ | 0.0068 | |
| ING Global Equity Dividend Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.2463 | |
| Class B | | | | | NII | | | $ | 0.1641 | |
| Class C | | | | | NII | | | $ | 0.1686 | |
| Class I | | | | | NII | | | $ | 0.2858 | |
| Class O | | | | | NII | | | $ | 0.2470 | |
| Class W | | | | | NII | | | $ | 0.2525 | |
| ING Global Natural Resources Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.0042 | |
| Class I | | | | | NII | | | $ | 0.0112 | |
| Class W | | | | | NII | | | $ | 0.0076 | |
| ING Global Opportunities Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.3244 | |
| Class B | | | | | NII | | | $ | 0.1909 | |
| Class C | | | | | NII | | | $ | 0.1933 | |
| Class I | | | | | NII | | | $ | 0.3939 | |
| Class W | | | | | NII | �� | | $ | 0.3046 | |
ING Global Real Estate Fund (1) | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.4520 | |
| Class B | | | | | NII | | | $ | 0.3547 | |
| Class C | | | | | NII | | | $ | 0.3522 | |
| Class I | | | | | NII | | | $ | 0.5051 | |
| Class O | | | | | NII | | | $ | 0.4501 | |
| Class R | | | | | NII | | | $ | 0.0539 | |
| Class W | | | | | NII | | | $ | 0.4930 | |
| All Classes, except class R | | | | | ROC | | | $ | 0.1441 | |
| Class R | | | | | ROC | | | $ | 0.0473 | |
| ING Global Value Choice Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.4696 | |
| Class B | | | | | NII | | | $ | 0.2019 | |
| Class C | | | | | NII | | | $ | 0.3514 | |
| Class I | | | | | NII | | | $ | 0.5512 | |
| Class W | | | | | NII | | | $ | 0.5371 | |
| ING Greater China Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.1785 | |
| Class B | | | | | NII | | | $ | 0.0744 | |
| Class C | | | | | NII | | | $ | 0.0811 | |
| Class I | | | | | NII | | | $ | 0.2348 | |
| Class O | | | | | NII | | | $ | 0.1900 | |
| Class W | | | | | NII | | | $ | 0.0002 | |
| ING Index Plus International Equity Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.1124 | |
| Class B | | | | | NII | | | $ | 0.0316 | |
| Class C | | | | | NII | | | $ | 0.0424 | |
| Class I | | | | | NII | | | $ | 0.1421 | |
| Class O | | | | | NII | | | $ | 0.1119 | |
| ING International Capital Appreciation | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.0355 | |
| Class B | | | | | NII | | | $ | 0.0072 | |
| Class C | | | | | NII | | | $ | 0.0072 | |
| Class I | | | | | NII | | | $ | 0.0830 | |
| Class W | | | | | NII | | | $ | 0.0665 | |
| ING International Real Estate Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.4602 | |
| Class B | | | | | NII | | | $ | 0.3875 | |
| Class C | | | | | NII | | | $ | 0.3921 | |
| Class I | | | | | NII | | | $ | 0.4873 | |
| Class W | | | | | NII | | | $ | 0.4851 | |
| ING International SmallCap Multi-Manager Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.1415 | |
| Class B | | | | | NII | | | $ | 0.0008 | |
| Class C | | | | | NII | | | $ | 0.0008 | |
| Class I | | | | | NII | | | $ | 0.3155 | |
| Class O | | | | | NII | | | $ | 0.2040 | |
| Class W | | | | | NII | | | $ | 0.2512 | |
| ING International Value Choice Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.0898 | |
| Class B | | | | | NII | | | $ | — | |
| Class C | | | | | NII | | | $ | 0.0266 | |
| Class I | | | | | NII | | | $ | 0.1169 | |
| Class W | | | | | NII | | | $ | 0.1130 | |
| ING International Value Fund | | | | | | | | | | |
| Class A | | | | | NII | | | $ | 0.2270 | |
| Class B | | | | | NII | | | $ | 0.0006 | |
| Class C | | | | | NII | | | $ | 0.1596 | |
| Class I | | | | | NII | | | $ | 0.2638 | |
| Class W | | | | | NII | | | $ | 0.2624 | |
NII — Net investment income
STCG — Short-term capital gain
(1) Character of distributions has been estimated; final character will be determined after the Fund’s tax year-end of December 31, 2011.
189
TAX INFORMATION (UNAUDITED) (CONTINUED)
Of the ordinary distributions made during the year ended October 31, 2011, the following percentages qualify for the dividends received deduction (DRD) available to corporate shareholders:
| Diversified International | | | | | 0.52 | % |
| Global Equity Dividend | | | | | 66.13 | % |
| Global Opportunities Fund | | | | | 6.11 | % |
| Global Value Choice | | | | | 13.02 | % |
| International Growth Fund | | | | | 1.02 | % |
| International SmallCap Multi-Manager | | | | | 0.43 | % |
| International Value Choice | | | | | 3.15 | % |
| International Value | | | | | 0.06 | % |
For the year ended October 31, 2011, the following are percentages of ordinary income dividends paid by the Funds (including creditable foreign taxes paid) that are designated as qualifying dividend income (QDI) subject to reduced income tax rates for individuals:
| Diversified International | | | | | 100.00 | % |
| Emerging Countries fund | | | | | 99.88 | % |
| Global Equity Dividend | | | | | 100.00 | % |
| Global Opportunities | | | | | 100.00 | % |
| Global Value Choice | | | | | 62.86 | % |
| Greater China | | | | | 70.96 | % |
| Index Plus International Equity | | | | | 100.00 | % |
| International Capital Appreciation | | | | | 100.00 | % |
| International Growth Fund | | | | | 93.58 | % |
| International Real Estate | | | | | 39.69 | % |
| International SmallCap Multi-Manager | | | | | 100.00 | % |
| International Value Choice | | | | | 100.00 | % |
| International Value | | | | | 100.00 | % |
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 Bond | | | | | 88.15 | % |
| Global Opportunities | | | | | 2.06 | % |
| Global Value Choice | | | | | 1.12 | % |
| Index Plus International Equity | | | | | 0.45 | % |
| International Capital Appreciation | | | | | 0.91 | % |
| International Real Estate | | | | | 0.49 | % |
| International SmallCap Multi-Manager | | | | | 2.13 | % |
| International Value | | | | | 1.26 | % |
Global Bond designates 100% of its short-term capital gain distribution as short-term capital gain dividends as defined in Internal Revenue Code Section 871(k)(2).
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, 2011. Foreign taxes paid for purposes of Section 853 may be less than actual foreign taxes paid for financial statement purposes.
| | | | Creditable
Foreign Taxes
Paid
| | Per Share
Amount
| | Portion of Ordinary Income
Distribution Derived from
Foreign Sourced Income*
|
|---|
| Emerging Countries | | | | $ | 222,979 | | | $ | 0.0637 | | | | 100.00 | % |
| Emerging Markets Equity | | | | $ | 560 | | | $ | 0.0001 | | | | 100.00 | % |
| Global Equity Dividend | | | | $ | 249,870 | | | $ | 0.0314 | | | | 68.65 | % |
| Global Opportunities | | | | $ | 120,276 | | | $ | 0.0236 | | | | 85.59 | % |
| Global Value Choice | | | | $ | 846,218 | | | $ | 0.0422 | | | | 24.62 | % |
| Greater China | | | | $ | 104,247 | | | $ | 0.0435 | | | | 100.00 | % |
| Index Plus International Equity | | | | $ | 270,185 | | | $ | 0.0218 | | | | 92.85 | % |
| International Capital Appreciation | | | | $ | 86,779 | | | $ | 0.0213 | | | | 100.00 | % |
| International Core | | | | $ | 508,561 | | | $ | 0.0127 | | | | 100.00 | % |
| International Growth | | | | $ | 274,745 | | | $ | 0.0167 | | | | 100.00 | % |
| International Real Estate | | | | $ | 982,488 | | | $ | 0.0162 | | | | 94.09 | % |
| International SmallCap Multi-Manager | | | | $ | 748,847 | | | $ | 0.0869 | | | | 100.00 | % |
| International Value Choice | | | | $ | 153,371 | | | $ | 0.0517 | | | | 100.00 | % |
| International Value | | | | $ | 3,176,910 | | | $ | 0.0460 | | | | 99.50 | % |
| Russia | | | | $ | 958,747 | | | $ | 0.0978 | | | | 97.68 | % |
| * | | None of the funds listed above derived any income from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code. |
Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. Shareholders are strongly advised to consult their own tax advisors regarding the appropriate treatment of foreign taxes paid.
Above figures may differ from those cited elsewhere in this report due to differences in the calculation of income and gains under U.S. generally accepted accounting principles (book) purposes and Internal Revenue Service (tax) purposes.
Shareholders are strongly advised to consult their own tax advisers with respect to the tax consequences of their investments in the Funds. In January, shareholders, excluding corporate shareholders, receive an IRS 1099-DIV regarding the federal tax status of the dividends and distributions they received in the calendar year.
190
SHAREHOLDER MEETING INFORMATION (UNAUDITED)
A special meeting of shareholders of the ING International Value Fund was held January 6, 2011, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
Proposal:
| 1 | | A new sub-advisory agreement between ING Investments, LLC (“ING Investments”), the Fund’s investment adviser, and del Rey Global Investors, LLC, the proposed additional sub-adviser to the Fund. |
| 2(A) | | A new sub-advisory agreement between ING Investments and ING Investment Management Asia/Pacific (Hong Kong) Limited. |
| 2(B) | | A new sub-advisory agreement between ING Investments and ING Investment Management Advisors B.V. |
| 3 | | A “Manager-of-Managers” arrangement for the Fund to permit ING Investments, subject to prior approval by the Board of Trustees of ING Mayflower Trust, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Fund’s shareholders. |
| | | | Proposal*
| | Shares voted for
| | Shares voted
against or withheld
| | Shares
abstained
| | Broker
non-vote
| | Total Shares
Voted
| |
|---|
| ING International Value Fund | | | | | 1 | | | | 32,853,626.878 | | | | 6,977,877.492 | | | | 1,130,870.550 | | | | — | | | | 40,962,374.920 | | | | | |
| ING International Value Fund | | | | | 2(A) | | | | 32,757,041.963 | | | | 7,051,153.199 | | | | 1,154,179.758 | | | | — | | | | 40,962,374.920 | | | | | |
| ING International Value Fund | | | | | 2(B) | | | | 32,793,138.920 | | | | 7,012,718.670 | | | | 1,156,517.330 | | | | — | | | | 40,962,374.920 | | | | | |
| ING International Value Fund | | | | | 3 | | | | 31,500,412.543 | | | | 8,272,335.308 | | | | 1,189,627.069 | | | | — | | | | 40,962,374.920 | | | | | |
| * | | Proposals did not pass; Adjourned to February 3, 2011 |
A special meeting of shareholders of the ING International Value Fund was held February 3, 2011, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
Proposal:
| 1 | | A new sub-advisory agreement between ING Investments, LLC (“ING Investments”), the Fund’s investment adviser, and del Rey Global Investors, LLC, the proposed additional sub-adviser to the Fund. |
| 2(A) | | A new sub-advisory agreement between ING Investments and ING Investment Management Asia/Pacific (Hong Kong) Limited. |
| 2(B) | | A new sub-advisory agreement between ING Investments and ING Investment Management Advisors B.V. |
| 3 | | A “Manager-of-Managers” arrangement for the Fund to permit ING Investments, subject to prior approval by the Board of Trustees of ING Mayflower Trust, to enter into and materially amend agreements with unaffiliated sub-advisers without obtaining the approval of the Fund’s shareholders. |
| | | | Proposal*
| | Shares voted for
| | Shares voted
against or withheld
| | Shares
abstained
| | Broker
non-vote
| | Total Shares
Voted
| |
|---|
| ING International Value Fund | | | | | 1 | | | | 45,206,802.919 | | | | 7,553,058.264 | | | | 2,021,033.041 | | | | — | | | | 54,780,894.224 | | | | | |
| ING International Value Fund | | | | | 2(A) | | | | 45,115,813.784 | | | | 7,626,138.653 | | | | 2,038,941.787 | | | | — | | | | 54,780,894.224 | | | | | |
| ING International Value Fund | | | | | 2(B) | | | | 45,139,151.895 | | | | 7,585,748.330 | | | | 2,055,993.999 | | | | — | | | | 54,780,894.224 | | | | | |
| ING International Value Fund | | | | | 3 | | | | 43,597,675.362 | | | | 9,102,837.913 | | | | 2,080,380.949 | | | | — | | | | 54,780,894.224 | | | | | |
191
SHAREHOLDER MEETING INFORMATION (UNAUDITED) (CONTINUED)
A special meeting of shareholders of the ING Global Real Estate Fund was held June 14, 2011, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
Proposal:
| 1 | | A new investment advisory agreement for the Fund between ING Investments, LLC, the investment adviser to the Fund, and Clarion Real Estate Securities, LLC, the current and proposed sub-adviser to the Fund. |
| 2 | | A “Manager-of-Managers” arrangement for the Fund to permit ING Investments, LLC, subject to prior approval by the Board of Trustees, to enter into and materially amend sub-advisory agreements with unaffiliated sub-advisers without obtaining the approval of the Fund’s shareholders. |
| | | | Proposal*
| | Shares voted for
| | Shares voted
against or withheld
| | Shares
abstained
| | Broker
non-vote
| | Total Shares
Voted
| |
|---|
| ING Global Real Estate Fund | | | | | 1 | | | | 104,844,099.703 | | | | 1,599,287.550 | | | | 2,978,800.904 | | | | — | | | | 109,422,188.157 | | | | | |
| ING Global Real Estate Fund | | | | | 2 | | | | 77,214,315.000 | | | | 28,394,001.892 | | | | 3,813,871.265 | | | | — | | | | 109,422,188.157 | | | | | |
A special meeting of shareholders of the ING International Real Estate Fund was held June 14, 2011, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Scottsdale, AZ 85258.
| 1 | | A new investment advisory agreement for the Fund between ING Investments, LLC, the investment adviser to the Fund, and Clarion Real Estate Securities, LLC, the current and proposed sub-adviser to the Fund. |
| | | | Proposal*
| | Shares voted for
| | Shares voted
against or withheld
| | Shares
abstained
| | Broker
non-vote
| | Total Shares
Voted
| |
|---|
| ING International Real Estate Fund | | | | | 1 | | | | 57,423,766.943 | | | | 175,405.822 | | | | 461,119.524 | | | | — | | | | 58,060,292.289 | | | | | |
192
DIRECTOR/TRUSTEE AND OFFICER INFORMATION (UNAUDITED)
The business and affairs of the Company/Trust are managed under the direction of the Companys/Trusts Board. A Director/Trustee who is not an interested person of the Company/Trust, as defined in the 1940 Act, is an independent director/trustee (Independent Director/Trustee). The Directors/Trustees and Officers of the Company/Trust are listed below. The Statement of Additional Information includes additional information about directors/trustees of the Company/Trust and is available, without charge, upon request at (800) 992-0180.
Name, Address and Age
| | | | Position(s)
Held with the
Company/Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal
Occupation(s)—
During the Past 5 Years
| | Number of
Funds in
Fund
Complex
Overseen by
Director/Trustee(2)(3)
| | Other
Board Positions
Held by
Director/Trustee
|
|---|
| |
Independent Trustees: | | | | | | | | | | | | | | | |
| |
Colleen D. Baldwin
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 51 | | | | Director/
Trustee | | IMF November 2007–Present
IMT December 2007–Present | | President, Glantuam Partners, LLC, a business consulting firm (January 2009– Present) and Consultant (January 2005–Present). | | 142 | | None.
|
| |
John V. Boyer
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 58 | | | | Director/
Trustee | | January 2005–Present | | President and Chief Executive Officer, Bechtler Arts Foundation, an arts and education foundation (January 2008–Present). Formerly, Consultant (July 2007–February 2008) and President and Chief Executive Officer, Franklin and Eleanor Roosevelt Institute, a public policy foundation (March 2006–July 2007). | | 142 | | None.
|
| |
Patricia W. Chadwick
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 63 | | | | Director/
Trustee | | January 2006–Present | | Consultant and President, Ravengate Partners LLC, a consulting firm that provides advice regarding financial markets and the global economy (January 2000–Present). | | 142 | | Wisconsin Energy Corporation (June 2006–Present) and The Royce Funds, 35 Funds (December 2009–Present). |
| |
Peter S. Drotch
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 69 | | | | Director/
Trustee | | IMF November 2007–Present
IMT December 2007–Present | | Retired. | | 142 | | First Marblehead Corporation (September 2003–Present). |
| |
J. Michael Earley
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 66 | | | | Director/
Trustee | | February 2002–Present | | Retired. Formerly, Banking President and Chief Executive Officer, Bankers Trust Company, N.A., Des Moines (June 1992–December 2008). | | 142 | | None.
|
| |
Patrick W. Kenny
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 68 | | | | Director/
Trustee | | January 2005–Present | | Retired. Formerly, President and Chief Executive Officer, International Insurance Society (June 2001– June 2009). | | 142 | | Assured Guaranty Ltd. (April 2004–Present). |
| |
Sheryl K. Pressler
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 61 | | | | Director/
Trustee | | January 2006–Present | | Consultant (May 2001–Present). | | 142 | | Stillwater Mining Company (May 2002–Present). |
193
DIRECTOR/TRUSTEE AND OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
| | | | Position(s)
Held with the
Company/Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal
Occupation(s)—
During the Past 5 Years
| | Number of
Funds in
Fund
Complex
Overseen by
Director/Trustee(2)(3)
| | Other
Board Positions
Held by
Director/Trustee
|
|---|
| |
Independent Trustees: (continued) | | | | | | | | | | | | | | | |
| |
Roger B. Vincent
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 66 | | | | Chairperson/Director/
Trustee | | February 2002–Present | | President, Springwell Corporation, a corporate finance firm (March 1989–Present). | | 142 | | UGI Corporation (February 2006–Present) and UGI Utilities, Inc. (February 2006–Present). |
| |
Trustees who are “Interested Persons”: | | | | | | | | | | | | | | | |
| |
Robert W. Crispin(4)
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 65 | | | | Director/
Trustee | | IMF November 2007–Present
IMT December 2007–Present | | Retired. Formerly, Chairman and Chief Executive Officer, ING Investment Management Co. (July 2001–December 2007). | | 142 | | Intact Financial Corporation (December 2004–Present) and PFM Group (November 2010–Present). |
| |
Shaun P. Mathews(4)
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 56 | | | | Director/
Trustee | | IMF November 2007–Present
IMT December 2007–Present | | President and Chief Executive Officer, ING Investments, LLC(5) (November 2006– Present). Formerly, Head of ING Mutual Funds and Investment Products (November 2004–November 2006). | | 180 | | ING Capital Corporation, LLC (December 2005–Present). |
(1) | | Directors/Trustees serve until their successors are duly elected and qualified. The tenure of each Director/Trustee is subject to the Board’s retirement policy which states that each duly elected or appointed Director/Trustee who is not an “interested person” of the Company/Trust, as defined in the 1940 Act, as amended (“Independent Directors/Trustees”), shall retire from service as a Director/Trustee at the conclusion of the first regularly scheduled quarterly meeting of the Board that is held after the Director/Trustee reaches the age of 72. A unanimous vote of the Board may extend the retirement date of a Director/Trustee for up to one year. An extension may be permitted if the retirement would trigger a requirement to hold a meeting of shareholders of the Company/Trust under applicable law, whether for purposes of appointing a successor to the Director/Trustee or if otherwise necessary under applicable law, in which case the extension would apply until such time as the shareholder meeting can be held or is no longer needed. |
(2) | | For the purposes of this table (except for Mr. Mathews) “Fund Complex” means the following investment companies: ING Asia Pacific High Dividend Equity Income Fund; ING Emerging Markets High Dividend Equity Fund; ING Emerging Markets Local Bond Fund; ING Equity Trust; ING Funds Trust; ING Global Advantage and Premium Opportunity Fund; ING Global Equity Dividend and Premium Opportunity Fund; ING Infrastructure, Industrials and Materials Fund; ING International High Dividend Equity Income Fund; ING Investors Trust; ING Mayflower Trust; ING Mutual Funds; ING Partners, Inc.; ING Prime Rate Trust; ING Risk Managed Natural Resources Fund; ING Senior Income Fund; ING Separate Portfolios Trust; ING Variable Insurance Trust; and ING Variable Products Trust. The number of funds in the Fund Complex is as of November 30, 2011. |
(3) | | Mr. Mathews is also Director/Trustee of the following investment companies: ING Balanced Portfolio, Inc.; ING Intermediate Bond Portfolio; ING Money Market Portfolio; ING Series Fund, Inc.; ING Strategic Allocation Portfolios, Inc.; ING Variable Funds; and ING Variable Portfolios, Inc. |
(4) | | Messrs. Mathews and Crispin are deemed to be “interested persons” of the Company/Trust as defined in the 1940 Act because of their affiliation with ING Groep, N.V., the parent corporation of the Investment Adviser, ING Investments, LLC and the Distributor, ING Investments Distributor, LLC. |
(5) | | 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. |
194
TRUSTEE AND OFFICER INFORMATION (UNAUDITED)
Name, Address and Age
| | | | Position(s)
Held With
the Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal Occupation(s)—
During the Past 5 Years
|
|---|
| |
Shaun P. Mathews
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 56 | | | | President and Chief Executive Officer | | November 2006–Present | | President and Chief Executive Officer, ING Investments, LLC(2) (November 2006–Present). Formerly, Head of ING Mutual Funds and Investment Products (November 2004–November 2006). |
| |
Michael J. Roland
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 53 | | | | Executive Vice President
Chief Compliance Officer | | February 2002–Present
March 2011–Present | | Chief Compliance Officer of the ING Funds, Directed Services LLC(3) and ING Investments, LLC(2) (March 2011–Present) and Executive Vice President and Chief Operating Officer, ING Investments, LLC(2) and ING Funds Services, LLC(4) (January 2007–Present). Formerly, Executive Vice President, Head of Product Management, ING Investments, LLC(2) and ING Funds Services, LLC(4) (January 2005–January 2007). |
| |
Stanley D. Vyner
230 Park Avenue
New York, New York 10169
Age: 61 | | | | Executive Vice President
Chief Investment Risk Officer | | IMF May 1999–Present
IMT November 1999–Present
September 2009–Present | | Executive Vice President, ING Investments, LLC(2) (July 2000– Present) and Chief Investment Risk Officer, ING Investments, LLC(2) (January 2003–Present). |
| |
Kimberly A. Anderson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 47 | | | | Senior Vice President | | November 2003–Present | | Senior Vice President, ING Investments, LLC(2) (October 2003–Present). |
| |
Todd Modic
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 44 | | | | Senior Vice President, Chief/Principal Financial Officer and Assistant Secretary | | March 2005–Present | | Senior Vice President, ING Funds Services, LLC(4) (March 2005–Present). |
| |
Robert Terris
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 41 | | | | Senior Vice President | | May 2006–Present | | Senior Vice President, Head of Division Operations, ING Funds Services, LLC(3) (May 2006–Present). |
| |
Gregory K. Wilson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 52 | | | | Senior Vice President | | September 2011–Present | | Vice President–Fund Compliance, ING Funds Services, LLC(4) (October 2009–Present). Formerly, Finance Director, ING Funds Services, LLC(4) (September 2006–October 2009). |
| |
Robyn L. Ichilov
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 44 | | | | Vice President and Treasurer | | IMF May 1999–Present
IMT November 1999–Present | | Vice President and Treasurer, ING Funds Services, LLC(4) (November 1995–Present) and ING Investments, LLC(2) (August 1997–Present). |
| |
Maria M. Anderson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 53 | | | | Vice President | | September 2004–Present | | Vice President, ING Funds Services, LLC(4) (September 2004–Present). |
| |
Lauren D. Bensinger
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 57 | | | | Vice President | | February 2003–Present | | Vice President, ING Investments, LLC(2) and ING Funds Services, LLC (4) (February 1996–Present); Director of Compliance, ING Investments, LLC(2) (October 2004–Present); and Vice President and Money Laundering Reporting Officer, ING Investments Distributor, LLC(5) (April 2010– Present). Formerly, Chief Compliance Officer, ING Investments Distributor, LLC(5) (August 1995–April 2010) |
195
TRUSTEE AND OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
| | | | Position(s)
Held With
the Trust
| | Term of Office
and Length of
Time Served(1)
| | Principal Occupation(s)—
During the Past 5 Years
|
|---|
| |
William Evans
One Orange Way
Windsor, Connecticut 06095
Age: 39 | | | | Vice President | | September 2007–Present | | Senior Vice President (March 2010–Present) and Head of Manager Research and Selection Group, ING Investment Management (April 2007–Present). Formerly, Vice President, U.S. Mutual Funds and Investment Products (May 2005–April 2007). |
| |
Denise Lewis
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 48 | | | | Vice President | | January 2007–Present | | Vice President, ING Funds Services, LLC(4) (December 2006–Present). Formerly, Senior Vice President, UMB Investment Services Group, LLC (November 2003–December 2006). |
| |
Kimberly K. Springer
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 54 | | | | Vice President | | March 2006–Present | | Vice President, ING Investment Management — ING Funds (March 2010–Present); Vice President, ING Funds Services, LLC(4) (March 2006–Present) and Managing Paralegal, Registration Statements (June 2003–Present). |
| |
Craig Wheeler
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 42 | | | | Assistant Vice President | | May 2008–Present | | Assistant Vice President — Director of Tax, ING Funds Services, LLC(4) (March 2008–Present). Formerly, Tax Manager, ING Funds Services, LLC(4) (March 2005–March 2008). |
| |
Huey P. Falgout, Jr.
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 48 | | | | Secretary | | August 2003–Present | | Senior Vice President and Chief Counsel, ING Investment Management — ING Funds (March 2010- Present). Formerly, Chief Counsel, ING Americas, U.S. Legal Services (October 2003–March 2010). |
| |
Paul Caldarelli
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 60 | | | | Assistant Secretary | | June 2010–Present | | Vice President and Senior Counsel, ING Investment Management — ING Funds (March 2010-Present). Formerly, Senior Counsel, ING Americas, U.S. Legal Services (April 2008–March 2010) and Counsel, ING Americas, U.S. Legal Services (May 2005–April 2008). |
| |
Theresa K. Kelety
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 48 | | | | Assistant Secretary | | August 2003–Present | | Vice President and Senior Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Senior Counsel, ING Americas, U.S. Legal Services (April 2008–March 2010) and Counsel, ING Americas, U.S. Legal Services (April 2003–April 2008). |
| |
Kathleen Nichols
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 36 | | | | Assistant Secretary | | May 2008–Present | | Vice President and Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Counsel, ING Americas, U.S. Legal Services (February 2008–March 2010) and Associate, Ropes & Gray LLP (September 2005–February 2008) |
(1) | | The Officers hold office until the next annual meeting of the Board of Directors/Trustees and until their successors shall 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) | | Directed Services LLC is the successor in interest to Directed Services, Inc. |
(4) | | ING Funds Services, LLC was previously named ING Pilgrim Group, LLC. ING Pilgrim Group, LLC is the successor in interest to ING Pilgrim Group, Inc., which was previously known as Pilgrim Group, Inc. and before that was known as Pilgrim America Group, Inc. |
(5) | | ING Investments Distributor, LLC was previously named ING Funds Distributor, LLC. 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. |
196
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED)
BOARD CONSIDERATION AND APPROVAL OF NEW ADVISORY OR SUB-ADVISORY CONTRACTS
Section 15 of the Investment Company Act of 1940 Act, as amended (the “1940 Act”), mandates that, when ING Emerging Markets Equity Fund (the “Fund”), a series of ING Mutual Funds (the “Trust”), enters into a new advisory or sub-advisory agreement, the Board of Trustees (the “Board”) of the Fund, including a majority of Board members who have no direct or indirect interest in the advisory contract or sub-advisory contract, and who are not “interested persons” of the Fund, as such term is defined under the 1940 Act (the “Independent Trustees”), must determine whether to approve the new arrangements. Thus, at a meeting held on September 8, 2011, the Board, including a majority of the Independent Trustees, considered whether to approve the investment advisory contract (the “Advisory Contract”) with ING Investments, LLC (the “Adviser”), the sub-advisory contract between the Adviser with J.P. Morgan Investment Management Inc. (“J.P. Morgan”), and the sub-advisory contract between the Adviser with Delaware Management Company (“Delaware”) (together, the “Sub-Advisory Contracts”).
The type and format of the information provided to the Board or to legal counsel for the Independent Trustees in connection with the contract approval process has been codified in the ING Funds 15(c) Methodology Guide. This Guide was developed under the direction of the Independent Trustees and sets out a blueprint pursuant to which the Independent Trustees request certain information that they deem important to facilitate an informed review in connection with initial approvals of advisory contracts. Management provides certain of the information requested by the 15(c) Methodology Guide in Fund Analysis and Comparison Tables (“FACT sheets”) prior to the Independent Trustees’ review of advisory arrangements (including the Fund’s Advisory and Sub-Advisory contracts).
In determining whether to initially 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 contracts included the following: (1) a memorandum presenting Management’s rationale for requesting the launch of the Fund that discusses, among other things: (a) the Adviser’s experience and expertise in the management of other funds within the ING Fund Complex, (b) the experience of the Adviser overseeing sub-advisers to other funds within the ING Fund Complex, (c) the experience of Delaware in managing the Delaware Emerging Market Strategy, and (d) the experience of J.P. Morgan in managing its Global Emerging Markets Diversified strategy; (2) information about the Fund’s investment objective and strategies and anticipated portfolio characteristics; (3) FACT sheets for the Fund that compare the Fund’s fee structure to its comparable selected peer group (“Selected Peer Group”) and Morningstar/Lipper category medians; (4) supporting documentation, including copies of the Advisory and Sub-Advisory Contracts for the Fund; and (5) other information relevant to the Board’s evaluation. In addition, the Board considered the information provided periodically throughout the year in presentations to the Board by the Adviser in the context of the Adviser’s oversight of other sub-advisers managing funds in the ING Fund Complex, and by Delaware and J.P. Morgan at the July 14, 2011 International/Balanced/Fixed Income Funds Investment Review Committee (“I/B/F IRC”) meeting regarding the Fund.
The Board’s consideration of whether to approve the Advisory Contract with the Adviser on behalf of the Fund took into account several factors including, but not limited to, the following: (1) the nature and quality of the services to be provided by the Adviser to the Fund under the Advisory Contract; (2) the Adviser’s experience as a manager-of-managers overseeing sub-advisers to other funds within the ING Fund Complex; (3) the Adviser’s strength and reputation within the industry; (4) the fairness of the compensation under the proposed Advisory Contract in light of the services to be provided to the Fund and taking into account the sub-advisory fees payable by the Adviser to Delaware and J.P. Morgan, respectively; (5) the fairness of the Adviser’s compensation under an Advisory Contract with a level fee rate that does not include breakpoints; (6) the pricing structure (including the estimated expense ratio to be borne by shareholders) of the Fund, including that: (a) the proposed net management fee rate is greater than the median and below the average management fee rate of the funds in the Fund’s proposed Selected Peer Group, and (b) the proposed expense ratio for the Fund is below the median and the average expense ratio of the funds in the Fund’s proposed Selected Peer Group; (7) the projected profitability of the Adviser when sub-advisory fees payable by the Adviser to Delaware and J.P. Morgan, respectively are taken into account; (8) the personnel, operations, financial condition, and investment management capabilities and resources of the Adviser; (9) the Adviser’s compliance capabilities, as demonstrated by, among other things, its policies and
197
ADVISORY CONTRACT APPROVAL DISCUSSION (UNAUDITED) (CONTINUED)
procedures designed to prevent violations of the Federal securities laws, which had previously been approved by the Board in connection with its oversight of other funds in the ING Funds complex; (10) the information that had been provided by the Adviser at regular Board meetings with respect to its capabilities as a manager-of-managers in overseeing similar funds; and (11) “fall-out benefits” to the Adviser and its affiliates that were anticipated to arise from the Adviser’s management of the Fund.
In reviewing the proposed Sub-Advisory Contract with Delaware, the Board considered a number of factors, including, but not limited to, the following: (1) the Adviser’s view of the reputation of Delaware and its sub-advisory services; (2) Delaware’s strength and reputation in the industry; (3) the information that had been provided by Delaware in advance of the July 14, 2011 I/B/F IRC meeting at which Delaware presented with respect to Delaware’s sub-advisory services; (4) the nature and quality of the services to be provided by Delaware under the proposed Sub-Advisory Contract; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of Delaware; (6) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by Delaware as the Fund’s Sub-Adviser; (7) Delaware’s operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws, which had been reviewed and evaluated by the Trust’s Chief Compliance Officer; (8) Delaware’s financial condition; (9) the appropriateness of the selection of Delaware in light of the Fund’s investment objective and prospective investor base; and (10) Delaware’s Code of Ethics, which were approved by the Board at its September 8, 2011 Meeting.
In reviewing the proposed Sub-Advisory Contract with J.P. Morgan, the Board considered a number of factors, including, but not limited to, the following: (1) the Adviser’s view of the reputation of J.P. Morgan and its sub-advisory services; (2) J.P. Morgan’s strength and reputation in the industry; (3) the information that had been provided by J.P. Morgan in advance of the July 14, 2011 I/B/F IRC meeting at which J.P. Morgan presented with respect to J.P. Morgan’s sub-advisory services; (4) the nature and quality of the services to be provided by J.P. Morgan under the proposed Sub-Advisory Contract; (5) the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of J.P. Morgan; (6) the fairness of the compensation under the Sub-Advisory Contract in light of the services to be provided by J.P. Morgan as the Fund’s Sub-Adviser; (7) J.P. Morgan’s operations and compliance program, including its policies and procedures intended to assure compliance with the Federal securities laws, which had been reviewed and evaluated by the Trust’s Chief Compliance Officer; (8) J.P. Morgan’s financial condition; (9) the appropriateness of the selection of J.P. Morgan in light of the Fund’s investment objective and prospective investor base; and (10) J.P. Morgan’s Code of Ethics, which were previously approved by the Board.
After its deliberation, the Board reached the following conclusions: (1) the Fund’s proposed management fee rate is reasonable in the context of all factors considered by the Board; (2) the Fund’s estimated expense ratio is reasonable in the context of all factors considered by the Board; (3) the sub-advisory fee rate payable by the Adviser to Delaware is reasonable in the context of all factors considered by the Board; (4) the sub-advisory fee rate payable by the Adviser to J.P. Morgan is reasonable in the context of all factors considered by the Board; (5) the Adviser maintains an appropriate compliance program, with this conclusion based upon the Board’s previous and ongoing review of its compliance programs; and (6) each of Delaware and J.P. Morgan maintains an appropriate compliance program, with this conclusion based upon, among other things, a representation from the Trust’s Chief Compliance Officer that each of Delaware and J.P. Morgan’s compliance policies and procedures are reasonably designed to assure compliance with the Federal securities laws. Based on these conclusions and other factors, the Board voted to approve the Advisory and Sub-Advisory Contracts for the Fund. During the Board’s deliberations, different Board members may have given different weight to different individual factors and related conclusions.
198
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Investment Adviser
ING Investments, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Administrator
ING Funds Services, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Distributor
ING Investments Distributor, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Transfer Agent
BNY Mellon Investment Servicing (U.S.) Inc.
301 Bellevue Parkway
Wilmington, Delaware 19809
Independent Registered Public Accounting Firm
KPMG LLP
Two Financial Center
60 South Street
Boston, Massachusetts 02111
Custodian
The Bank of New York Mellon
One Wall Street
New York, New York 10286
Legal Counsel
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006
For more complete information, or to obtain a prospectus on any ING Fund, please call your Investment Professional or ING Investments Distributor, LLC at (800) 992-0180 or log on to www.ingfunds.com. The prospectus should be read carefully before investing. Consider the fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this information and other information about the fund.
 | AR-UINTALL (1011-122111)
|
|
Item 2. Code of Ethics.
As of the end of the period covered by this report, Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to the Registrant’s principal executive officer and principal financial officer. There were no amendments to the Code during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period covered by this report. The code of ethics is filed herewith pursuant to Item 10 (a)(l), Exhibit 99.CODE ETH.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that J. Michael Earley and Peter S. Drotch are audit committee financial experts, as defined in Item 3 of Form N-CSR. Mr. Earley and Mr. Drotch are “independent” for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
| (a) | | Audit Fees: The aggregate fees billed for each of the last two fiscal years for professional services rendered by KPMG LLP (“KPMG”), the principal accountant for the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $37,318 for year ended October 31, 2011 and $74,358 for year ended October 31, 2010. |
| |
| (b) | | Audit-Related Fees: The aggregate fees billed in each of the last two fiscal years for assurance and related services by KPMG that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $2,400 for the year ended October 31, 2011 and $2,150 for the year ended October 31, 2010. |
| |
| (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 $7,414 in the year ended October 31, 2011 and $1,904 in the year ended October 31, 2010. Such services induced review of excise distribution calculations (if applicable), preparation of the Funds’ federal, state and excise tax returns, tax services related to mergers and routine consulting. |
| |
| (d) | | All Other Fees: The aggregate fees billed in each of the last two fiscal years for products and services provided by KPMG, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the year ended October 31, 2011 and $0 for the year ended October 31, 2010. |
| |
| (e) | | (1) Audit Committee Pre-Approval Policies and Procedures |
AUDIT AND NON-AUDIT SERVICES
PRE-APPROVAL POLICY
I.
Statement of Principles
Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Board of Directors or Trustees (the “Committee”) of the ING Funds (each a “Fund,” collectively, the “Funds”) set out on Exhibit A to this Audit and Non-Audit Services Pre-Approval Policy (“Policy”) is responsible for the oversight of the work of the Funds’ independent auditors. As part of its responsibilities, the Committee must pre-approve the audit and non-audit services performed by the auditors in order to assure that the provision of these services does not impair the auditors’ independence from the Funds. The Committee has adopted, and the Board has ratified, this Policy, which sets out the procedures and conditions under which the services of the independent auditors may be pre-approved.
Under Securities and Exchange Commission (“SEC”) rules promulgated in accordance with the Act, the Funds may establish two different approaches to pre-approving audit and non-audit services. The Committee may approve services without consideration of specific case-by-case services (“general pre-approval”) or it may pre-approve specific services (“specific pre-approval”). The Committee believes that the combination of these approaches contemplated in this Policy results in an effective and efficient method for pre-approving audit and non-audit services to be performed by the Funds’ independent auditors. Under this Policy, services that are not of a type that may receive general pre-approval require specific pre-approval by the Committee. Any proposed services that exceed pre-approved cost levels or budgeted amounts will also require the Committee’s specific pre-approval.
For both types of approval, the Committee considers whether the subject services are consistent with the SEC’s rules on auditor independence and that such services are compatible with maintaining the auditors independence. The Committee also considers whether a particular audit firm is in the best position to provide effective and efficient services to the Funds. Reasons that the auditors are in the best position include the auditors’ familiarity with the Funds’ business, personnel, culture, accounting systems, risk profile, and other factors, and whether the services will enhance the Funds’ ability to manage and control risk or improve audit quality. Such factors will be considered as a whole, with no one factor being determinative.
The appendices attached to this Policy describe the audit, audit-related, tax-related, and other services that have the Committee’s general pre-approval. For any service that has been approved through general pre-approval, the general pre-approval will remain in place for a period 12 months from the date of pre-approval, unless the Committee determines that a different period is appropriate. The Committee will annually review and pre-approve the services that may be provided by the independent auditors without specific pre-approval. The Committee will revise the list of services subject to general pre-approval as appropriate. This Policy does not serve as a delegation to Fund management of the Committee’s duty to pre-approve services performed by the Funds’ independent auditors.
II.
Audit Services
The annual audit services engagement terms and fees are subject to the Committee’s specific pre-approval. Audit services are those services that are normally provided by auditors in connection with statutory and regulatory filings or engagements or those that generally only independent auditors can reasonably provide. They include the Funds’ annual financial statement audit and procedures that the independent auditors must perform in order to form an opinion on the Funds’ financial statements (e.g., information systems and procedural reviews and testing). The Committee will monitor the audit services engagement and approve any changes in terms, conditions or fees deemed by the Committee to be necessary or appropriate.
The Committee may grant general pre-approval to other audit services, such as statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or issued in connection with securities offerings.
The Committee has pre-approved the audit services listed on Appendix A. The Committee must specifically approve all audit services not listed on Appendix A.
III.
Audit-related Services
Audit-related services are assurance and related services that are reasonably related to the performance of the audit or the review of the Funds’ financial statements or are traditionally performed by the independent auditors. The Committee believes that the provision of audit-related services will not impair the independent auditors’ independence, and therefore may grant pre-approval to audit-related services. Audit-related services include accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services;” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures relating to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Form N-SAR or Form N-CSR.
The Committee has pre-approved the audit-related services listed on Appendix B. The Committee must specifically approve all audit-related services not listed on Appendix B.
IV.
Tax Services
The Committee believes the independent auditors can provide tax services to the Funds, including tax compliance, tax planning, and tax advice, without compromising the auditors’ independence. Therefore, the Committee may grant general pre-approval with respect to tax services historically provided by the Funds’ independent auditors that do not, in the Committee’s view, impair auditor independence and that are consistent with the SEC’s rules on auditor independence.
The Committee will not grant pre-approval if the independent auditors initially recommends a transaction the sole business purpose of which is tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Committee may consult
2
outside counsel to determine that tax planning and reporting positions are consistent with this Policy.
The Committee has pre-approved the tax-related services listed on Appendix C. The Committee must specifically approve all tax-related services not listed on Appendix C.
V.
Other Services
The Committee believes it may grant approval of non-audit services that are permissible services for independent auditors to a Fund. The Committee has determined to grant general pre-approval to other services that it believes are routine and recurring, do not impair auditor independence, and are consistent with SEC rules on auditor independence.
The Committee has pre-approved the non-audit services listed on Appendix D. The Committee must specifically approve all non-audit services not listed on Appendix D.
A list of the SEC’s prohibited non-audit services is attached to this Policy as Appendix E. The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of these impermissible services and the applicability of exceptions to certain of the SEC’s prohibitions.
VI.
Pre-approval of Fee levels and Budgeted Amounts
The Committee will annually establish pre-approval fee levels or budgeted amounts for audit, audit-related, tax and non-audit services to be provided to the Funds by the independent auditors. Any proposed services exceeding these levels or amounts require the Committee’s specific pre-approval. The Committee considers fees for audit and non-audit services when deciding whether to pre-approve services. The Committee may determine, for a pre-approval period of 12 months, the appropriate ratio between the total amount of fees for the Fund’s audit, audit-related, and tax services (including fees for services provided to Fund affiliates that are subject to pre-approval), and the total amount of fees for certain permissible non-audit services for the Fund classified as other services (including any such services provided to Fund affiliates that are subject to pre-approval).
VII.
Procedures
Requests or applications for services to be provided by the independent auditors will be submitted to management. If management determines that the services do not fall within those services generally pre-approved by the Committee and set out in the appendices to these procedures, management will submit the services to the Committee or its delagee. Any such submission will include a detailed description of the services to be rendered. Notwithstanding this paragraph, the Committee will, on a quarterly basis, receive from the independent auditors a list of services provided for the previous calendar quarter on a cumulative basis by the auditors during the Pre-Approval Period.
3
VIII.
Delegation
The Committee may delegate pre-approval authority to one or more of the Committee’s members. Any member or members to whom such pre-approval authority is delegated must report any pre-approval decisions, including any pre-approved services, to the Committee at its next scheduled meeting. The Committee will identify any member to whom pre-approval authority is delegated in writing. The member will retain such authority for a period of 12 months from the date of pre-approval unless the Committee determines that a different period is appropriate. The period of delegated authority may be terminated by the Committee or at the option of the member.
IX.
Additional Requirements
The Committee will take any measures the Committee deems necessary or appropriate to oversee the work of the independent auditors and to assure the auditors’ independence from the Funds. This may include reviewing a formal written statement from the independent auditors delineating all relationships between the auditors and the Funds, consistent with Independence Standards Board No. 1, and discussing with the auditors their methods and procedures for ensuring independence.
Effective April 23, 2008, the KPMG LLP (“KPMG”) audit team for the ING Funds accepted the global responsibility for monitoring the auditor independence for KPMG relative to the ING Funds. Using a proprietary system called Sentinel, the audit team is able to identify and manage potential conflicts of interest across the member firms of the KPMG International Network and prevent the provision of prohibited services to the ING entities that would impair KPMG independence with the respect to the ING Funds. In addition to receiving pre-approval from the ING Funds Audit Committee for services provided to the ING Funds and for services for ING entities in the Investment Company Complex, the audit team has developed a process for periodic notification via email to the ING Funds’ Audit Committee Chairpersons regarding requests to provide services to ING Groep NV and its affiliates from KPMG offices worldwide. Additionally, KPMG provides a quarterly summary of the fees for services that have commenced for ING Groep NV and Affiliates at each Audit Committee Meeting.
4
Last Approved: September 29, 2010
5
Appendix A
Pre-Approved Audit Services for the Pre-Approval Period September 29, 2010 through December 31, 2011
| | |
Service |
| The Fund(s) | Fee Range |
Statutory audits or financial audits (including tax services associated with audit services) | √ | 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. | √ | 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. | √ | 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 | √ | Not to exceed
$13,000 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.
6
Appendix B
Pre-Approved Audit-Related Services for the Pre-Approval Period September 29, 2010 through December 31, 2011
| | | |
Service |
| 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) | √ | √ | 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.] | √ | | Not to exceed
$5,000 per
occurrence during
the Pre-Approval
Period |
Review of the Funds’ semi-annual and quarterly financial statements | √ | | Not to exceed
$2,400 per set of
financial
statements per
fund |
Reports to regulatory or government agencies related to the annual engagement | √ | | Up to $5,000 per
occurrence during
the Pre-Approval
Period |
Regulatory compliance assistance | √ | √ | Not to exceed
$5,000 per quarter |
Training courses | | √ | Not to exceed
$2,000 per course |
For Prime Rate Trust, agreed upon procedures for quarterly reports to rating agencies | √ | | Not to exceed
$9,450 per quarter |
| | | |
7
Appendix C
Pre-Approved Tax Services for the Pre-Approval Period September 29, 2010 through December 31, 2011
| | | |
Service |
| The Fund(s) | Fund 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 | √ | | As presented to
Audit
Committee2 |
Review of IRC Sections 851(b) and 817(h) diversification testing on a real-time basis | √ | | As presented to
Audit
Committee2 |
Assistance and advice regarding year-end reporting for 1099’s | √ | | As presented to
Audit
Committee2 |
Tax assistance and advice regarding statutory, regulatory or administrative developments | √ | √ | 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.
8
Appendix C, continued
| | | |
Service |
| The Fund(s) | Fund
Affiliates | Fee Range |
Tax training courses | | √ | Not to exceed
$2,000 per
course during
the Pre-
Approval Period |
Tax services associated with Fund mergers | √ | √ | 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. | √ | | Not to exceed
$120,000 during
the Pre-
Approval Period |
9
Appendix D
Pre-Approved Other Services for the Pre-Approval Period September 29 , 2010 through December 31, 2011
| | | |
Service |
| The Fund(s) | Fund Affiliates | Fee Range |
Agreed-upon procedures for Class B share 12b-1 programs | | √ | Not to exceed
$60,000
during the Pre-
Approval
Period |
Security counts performed pursuant to Rule 17f-2 of the 1940 Act (i.e., counts for Funds holding securities with affiliated sub-custodians) Cost to be borne 50% by the Funds and 50% by ING Investments, LLC. | √ | √ | Not to exceed
$5,000 per
Fund during
the Pre-
Approval
Period |
Agreed upon procedures for 15 (c) FACT Books | √ | | Not to exceed
$35,000
during the Pre-
Approval
Period |
10
Appendix E
Prohibited Non-Audit Services
Dated:
September 29. 2010 to December 31, 2011
·
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
11
EXHIBIT A
ING EQUITY TRUST
ING FUNDS TRUST
ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME FUND
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND
ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME FUND
ING INFRASTRUCTURE, INDUSTRIALS, AND MATERIALS FUND
ING RISK MANAGED NATURAL RESOURCES FUNDING INVESTORS TRUST
ING EMERGING MARKETS HIGH DIVIDEND EQUITY FUND
ING INVESTORS TRUST
ING MAYFLOWER TRUST
ING MUTUAL FUNDS
ING PARTNERS, INC.
ING PRIME RATE TRUST
ING SENIOR INCOME FUND
ING SEPARATE PORTFOLIOS TRUST
ING VARIABLE INSURANCE TRUST
ING VARIABLE PRODUCTS TRUST
| | | |
| (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 $50,106 for year ended October 31, 2011 and $1,394,664 for year ended October 31, 2010. |
| | | |
| (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. |
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments
| | PORTFOLIO OF INVESTMENTS |
| ING INTERNATIONAL VALUE FUND | AS OF OCTOBER 31, 2011 |
| | | | | | | | | | | |
| | | | | | | | | | Percentage | |
| | | | | | | | | | of Net | |
| Shares | | | | | | Value | | | Assets | |
| COMMON STOCK: 100.7% | | | | | | | |
| | | | Australia: 1.3% | | | | | | | |
| 192,758 | | | National Australia Bank | | | | | | | |
| | | | Ltd. | | $ | 5,148,437 | | | 0.7 | |
| 163,217 | | | Westpac Banking Corp. | | | 3,787,641 | | | 0.6 | |
| | | | | | | 8,936,078 | | | 1.3 | |
| | | | | | | | | | | |
| | | | Belgium: 0.7% | | | | | | | |
| 155,829 | | | Belgacom S.A. | | | 4,712,084 | | | 0.7 | |
| | | | | | | | | | | |
| | | | Brazil: 2.4% | | | | | | | |
| 333,792 | | | Banco do Brasil S.A. | | | 5,093,835 | | | 0.7 | |
| 267,871 | | | Centrais Eletricas | | | | | | | |
| | | | Brasileiras SA ADR | | | 2,665,316 | | | 0.4 | |
| 120,170 | L | | Petroleo Brasileiro SA | | | | | | | |
| | | | ADR | | | 3,039,099 | | | 0.4 | |
| 108,154 | | | Tele Norte Leste | | | | | | | |
| | | | Participacoes SA ADR | | | 1,173,471 | | | 0.2 | |
| 70,930 | | | Telefonica Brasil SA | | | | | | | |
| | | | ADR | | | 2,058,389 | | | 0.3 | |
| 105,508 | L | | Tim Participacoes SA | | | | | | | |
| | | | ADR | | | 2,747,428 | | | 0.4 | |
| | | | | | | 16,777,538 | | | 2.4 | |
| | | | | | | | | | | |
| | | | Canada: 3.1% | | | | | | | |
| 22,900 | | | Agnico-Eagle Mines | | | | | | | |
| | | | Ltd. | | | 993,425 | | | 0.1 | |
| 175,500 | | | Barrick Gold Corp. | | | 8,687,250 | | | 1.2 | |
| 87,000 | | | Kinross Gold Corp. | | | 1,248,450 | | | 0.2 | |
| 52,000 | | | Magna International, | | | | | | | |
| | | | Inc. | | | 1,983,800 | | | 0.3 | |
| 47,700 | | | National Bank Of | | | | | | | |
| | | | Canada | | | 3,404,442 | | | 0.5 | |
| 154,800 | | | Nexen, Inc. | | | 2,628,504 | | | 0.4 | |
| 90,500 | | | Suncor Energy, Inc. | | | 2,887,855 | | | 0.4 | |
| | | | | | | 21,833,726 | | | 3.1 | |
| | | | | | | | | | | |
| | | | China: 1.8% | | | | | | | |
| 4,887,000 | | | China Construction | | | | | | | |
| | | | Bank | | | 3,590,651 | | | 0.5 | |
| 279,000 | | | China Mobile Ltd. | | | 2,651,711 | | | 0.4 | |
| 13,346,000 | | | Huaneng Power | | | | | | | |
| | | | International, Inc. | | | 6,035,932 | | | 0.9 | |
| 190,000 | X | | Sino-Forest Corp. | | | 130,625 | | | 0.0 | |
| | | | | | | 12,408,919 | | | 1.8 | |
| | | | | | | | | | | |
| | | | Finland: 1.9% | | | | | | | |
| 854,449 | | | Nokia OYJ | | | 5,749,743 | | | 0.8 | |
| 171,239 | | | Sampo OYJ | | | 4,706,841 | | | 0.7 | |
| 505,293 | | | Stora Enso OYJ (Euro | | | | | | | |
| | | | Denominated Security) | | | 3,198,322 | | | 0.4 | |
| | | | | | | 13,654,906 | | | 1.9 | |
| | | | | | | | | | | |
| | | | France: 9.9% | | | | | | | |
| 154,276 | | | Accor S.A. | | | 5,042,352 | | | 0.7 | |
| 1,479,841 | @ | | Alcatel-Lucent | | | 4,091,321 | | | 0.6 | |
| 92,171 | | | Alstom | | | 3,432,264 | | | 0.5 | |
| 89,532 | | | BNP Paribas | | | 3,998,041 | | | 0.6 | |
| 80,064 | | | Capgemini S.A. | | | 3,063,677 | | | 0.4 | |
| 151,336 | | | Carrefour S.A. | | | 4,004,049 | | | 0.6 | |
| 75,271 | | | Cie Generale des | | | | | | | |
| | | | Etablissements Michelin | | | 5,450,389 | | | 0.8 | |
| 339,035 | | | France Telecom S.A. | | | 6,095,452 | | | 0.9 | |
| 393,328 | | | Natixis | | $ | 1,246,554 | | | 0.2 | |
| 228,904 | | | Sanofi-Aventis | | | 16,375,571 | | | 2.3 | |
| 45,720 | | | Societe Generale | | | 1,309,044 | | | 0.2 | |
| 23,744 | | | Technip S.A. | | | 2,245,163 | | | 0.3 | |
| 251,363 | | | Total S.A. | | | 13,115,429 | | | 1.8 | |
| | | | | | | 69,469,306 | | | 9.9 | |
| | | | | | | | | | | |
| | | | Germany: 8.2% | | | | | | | |
| 49,610 | | | BASF AG | | | 3,621,324 | | | 0.5 | |
| 196,888 | | | Deutsche Bank AG | | | 8,141,036 | | | 1.2 | |
| 55,779 | @ | | Deutsche Boerse AG | | | 3,074,192 | | | 0.4 | |
| 331,100 | | | Deutsche Post AG | | | 5,022,296 | | | 0.7 | |
| 720,285 | | | Deutsche Telekom AG | | | 9,150,597 | | | 1.3 | |
| 165,120 | | | E.ON AG | | | 3,981,866 | | | 0.6 | |
| 84,470 | | | Hannover | | | | | | | |
| | | | Rueckversicheru - Reg | | | 4,158,843 | | | 0.6 | |
| 29,951 | | | K+S AG | | | 1,897,869 | | | 0.3 | |
| 70,824 | | | Metro AG | | | 3,281,540 | | | 0.5 | |
| 86,081 | | | SAP AG | | | 5,205,141 | | | 0.7 | |
| 94,265 | | | Siemens AG | | | 9,880,942 | | | 1.4 | |
| | | | | | | 57,415,646 | | | 8.2 | |
| | | | | | | | | | | |
| | | | Hong Kong: 0.6% | | | | | | | |
| 6,582,000 | X | | Chaoda Modern | | | | | | | |
| | | | Agriculture Holdings | | | | | | | |
| | | | Ltd. | | | 698,969 | | | 0.1 | |
| 420,000 | | | HongKong Electric | | | | | | | |
| | | | Holdings | | | 3,191,500 | | | 0.5 | |
| | | | | | | 3,890,469 | | | 0.6 | |
| | | | | | | | | | | |
| | | | Ireland: 0.5% | | | | | | | |
| 203,218 | | | CRH PLC | | | 3,676,743 | | | 0.5 | |
| | | | | | | | | | | |
| | | | Israel: 0.6% | | | | | | | |
| 101,400 | | | Teva Pharmaceutical | | | | | | | |
| | | | Industries Ltd. ADR | | | 4,142,190 | | | 0.6 | |
| | | | | | | | | | | |
| | | | Italy: 5.2% | | | | | | | |
| 687,441 | | | Enel S.p.A. | | | 3,243,415 | | | 0.5 | |
| 548,556 | | | ENI S.p.A. | | | 12,125,235 | | | 1.7 | |
| 348,505 | @ | | Fiat Industrial SpA | | | 3,034,254 | | | 0.4 | |
| 3,244,737 | | | Intesa Sanpaolo S.p.A. | | | 5,726,968 | | | 0.8 | |
| 469,900 | | | Intesa Sanpaolo SpA | | | 677,075 | | | 0.1 | |
| 11,061,821 | | | Telecom Italia S.p.A. | | | | | | | |
| | | | RNC | | | 11,608,912 | | | 1.7 | |
| | | | | | | 36,415,859 | | | 5.2 | |
| | | | | | | | | | | |
| | | | Japan: 23.9% | | | | | | | |
| 113,000 | | | Akita Bank Ltd. | | | 323,752 | | | 0.0 | |
| 85,300 | | | Astellas Pharma, Inc. | | | 3,119,713 | | | 0.4 | |
| 45,000 | | | Canon, Inc. | | | 2,042,901 | | | 0.3 | |
| 1,065,590 | | | Chuo Mitsui Trust | | | | | | | |
| | | | Holdings, Inc. | | | 3,646,581 | | | 0.5 | |
| 788,000 | | | Dai Nippon Printing Co., | | | | | | | |
| | | | Ltd. | | | 8,253,851 | | | 1.2 | |
| 193,736 | | | Daiichi Sankyo Co., Ltd. | | | 3,763,248 | | | 0.5 | |
| 378,900 | | | Fuji Photo Film Co., Ltd. | | | 9,273,274 | | | 1.3 | |
| 302,000 | | | Hachijuni Bank Ltd. | | | 1,679,053 | | | 0.2 | |
| 1,275,000 | | | Hitachi Ltd. | | | 6,831,816 | | | 1.0 | |
| 1,034 | | | Inpex Holdings, Inc. | | | 6,826,553 | | | 1.0 | |
| 702 | | | Japan Tobacco, Inc. | | | 3,508,710 | | | 0.5 | |
| 151,000 | | | JGC Corp. | | | 4,253,992 | | | 0.6 | |
| 216,700 | | | Komatsu Ltd. | | | 5,357,867 | | | 0.8 | |
| 115,700 | | | Mabuchi Motor Co., Ltd. | | | 5,070,976 | | | 0.7 | |
| 647,300 | | | Mitsubishi UFJ Financial | | | | | | | |
| | | | Group, Inc. | | | 2,813,125 | | | 0.4 | |
See Accompanying Notes to Financial Statements
87
| | PORTFOLIO OF INVESTMENTS |
| ING INTERNATIONAL VALUE FUND | AS OF OCTOBER 31, 2011 (CONTINUED) |
| | | | | | | | | | | |
| | | | | | | | | | Percentage | |
| | | | | | | | | | of Net | |
| Shares | | | | | | Value | | | Assets | |
| COMMON STOCK: (continued) | | | | | | | |
| | | | Japan: (continued) | | | | | | | |
| 238,300 | | | Mitsui Sumitomo | | | | | | | |
| | | | Insurance Group | | | | | | | |
| | | | Holdings, Inc. | | $ | 4,667,429 | | | 0.7 | |
| 1,327,500 | | | Mizuho Financial | | | | | | | |
| | | | Group, Inc. | | | 1,858,087 | | | 0.3 | |
| 18,700 | | | Nintendo Co., Ltd. | | | 2,821,280 | | | 0.4 | |
| 115,600 | | | Nippon Telegraph & | | | | | | | |
| | | | Telephone Corp. | | | 5,929,799 | | | 0.8 | |
| 631,300 | | | Nissan Motor Co., Ltd. | | | 5,804,645 | | | 0.8 | |
| 3,093 | | | NTT DoCoMo, Inc. | | | 5,493,301 | | | 0.8 | |
| 231,300 | | | Omron Corp. | | | 4,984,836 | | | 0.7 | |
| 48,000 | | | Ono Pharmaceutical | | | | | | | |
| | | | Co., Ltd. | | | 2,512,072 | | | 0.4 | |
| 127,300 | | | Rohm Co., Ltd. | | | 6,486,121 | | | 0.9 | |
| 120,400 | | | Sega Sammy Holdings, | | | | | | | |
| | | | Inc. | | | 2,617,739 | | | 0.4 | |
| 420,000 | | | Sekisui House Ltd. | | | 3,759,693 | | | 0.5 | |
| 514,700 | | | Seven & I Holdings Co., | | | | | | | |
| | | | Ltd. | | | 13,735,152 | | | 1.9 | |
| 219,300 | | | Shiseido Co., Ltd. | | | 4,013,929 | | | 0.6 | |
| 122,100 | | | Sony Corp. | | | 2,547,424 | | | 0.4 | |
| 309,100 | | | Sumitomo Mitsui | | | | | | | |
| | | | Financial Group, Inc. | | | 8,639,817 | | | 1.2 | |
| 27,000 | | | Taisho Pharmaceutical | | | | | | | |
| | | | Holdings Co. Ltd. | | | 1,906,370 | | | 0.3 | |
| 112,100 | | | Takeda Pharmaceutical | | | | | | | |
| | | | Co., Ltd. | | | 5,053,624 | | | 0.7 | |
| 31,200 | | | TDK Corp. | | | 1,272,281 | | | 0.2 | |
| 381,400 | | | Tokio Marine Holdings, | | | | | | | |
| | | | Inc. | | | 9,094,287 | | | 1.3 | |
| 100,600 | | | Tokyo Electron Ltd. | | | 5,350,260 | | | 0.8 | |
| 89,600 | | | Toyota Motor Corp. | | | 2,974,790 | | | 0.4 | |
| | | | | | | 168,288,348 | | | 23.9 | |
| | | | | | | | | | | |
| | | | Luxembourg: 0.2% | | | | | | | |
| 82,429 | | | ArcelorMittal | | | 1,709,002 | | | 0.2 | |
| | | | | | | | | | | |
| | | | Mexico: 0.4% | | | | | | | |
| 115,600 | | | America Movil SAB de | | | | | | | |
| | | | CV ADR | | | 2,938,552 | | | 0.4 | |
| | | | | | | | | | | |
| | | | Netherlands: 8.2% | | | | | | | |
| 941,001 | @ | | Aegon NV | | | 4,487,584 | | | 0.6 | |
| 41,100 | | | Akzo Nobel NV | | | 2,161,123 | | | 0.3 | |
| 166,981 | | | European Aeronautic | | | | | | | |
| | | | Defence and Space Co. | | | | | | | |
| | | | NV | | | 4,922,474 | | | 0.7 | |
| 337,812 | | | Koninklijke Ahold NV | | | 4,316,010 | | | 0.6 | |
| 377,152 | | | Royal Dutch Shell PLC - | | | | | | | |
| | | | Class A | | | 13,360,478 | | | 1.9 | |
| 146,906 | | | Royal Dutch Shell PLC - | | | | | | | |
| | | | Class B | | | 5,270,709 | | | 0.8 | |
| 233,439 | | | Koninklijke Philips | | | | | | | |
| | | | Electronics NV | | | 4,859,432 | | | 0.7 | |
| 345,004 | | | Unilever NV | | | 11,910,803 | | | 1.7 | |
| 350,666 | | | Wolters Kluwer NV | | | 6,187,486 | | | 0.9 | |
| | | | | | | 57,476,099 | | | 8.2 | |
| | | | | | | | | | | |
| | | | Portugal: 0.8% | | | | | | | |
| 1,290,202 | | | Energias de Portugal | | | | | | | |
| | | | S.A. | | | 4,053,191 | | | 0.6 | |
| | | | | | | | | | | |
| 225,276 | | | Portugal Telecom | | | | | | | |
| | | | SGPS S.A. | | $ | 1,610,991 | | | 0.2 | |
| | | | | | | 5,664,182 | | | 0.8 | |
| | | | | | | | | | | |
| | | | Singapore: 1.6% | | | | | | | |
| 510,000 | | | Oversea-Chinese | | | | | | | |
| | | | Banking Corp. | | | 3,414,432 | | | 0.5 | |
| 1,316,000 | | | Singapore | | | | | | | |
| | | | Telecommunications | | | | | | | |
| | | | Ltd. | | | 3,327,260 | | | 0.4 | |
| 357,000 | | | United Overseas Bank | | | | | | | |
| | | | Ltd. | | | 4,841,828 | | | 0.7 | |
| | | | | | | 11,583,520 | | | 1.6 | |
| | | | | | | | | | | |
| | | | South Africa: 1.4% | | | | | | | |
| 84,429 | | | AngloGold Ashanti Ltd | | | 3,816,078 | | | 0.5 | |
| 236,657 | | | Gold Fields Ltd. | | | 4,102,302 | | | 0.6 | |
| 92,400 | | | Impala Platinum | | | | | | | |
| | | | Holdings Ltd. | | | 2,122,068 | | | 0.3 | |
| | | | | | | 10,040,448 | | | 1.4 | |
| | | | | | | | | | | |
| | | | South Korea: 1.3% | | | | | | | |
| 115,110 | | | Korea Electric Power | | | | | | | |
| | | | Corp. | | | 2,577,595 | | | 0.4 | |
| 230,000 | | | KT Corp. ADR | | | 3,836,400 | | | 0.5 | |
| 21,085 | | | SK Telecom Co., Ltd. | | | 2,807,586 | | | 0.4 | |
| | | | | | | 9,221,581 | | | 1.3 | |
| | | | | | | | | | | |
| | | | Spain: 2.0% | | | | | | | |
| 487,341 | | | Banco Popular Espanol | | | | | | | |
| | | | S.A. | | | 2,230,684 | | | 0.3 | |
| 338,985 | | | Indra Sistemas S.A. | | | 5,680,129 | | | 0.8 | |
| 284,054 | | | Telefonica S.A. | | | 6,036,606 | | | 0.9 | |
| | | | | | | 13,947,419 | | | 2.0 | |
| | | | | | | | | | | |
| | | | Sweden: 1.0% | | | | | | | |
| 228,562 | | | Telefonaktiebolaget LM | | | | | | | |
| | | | Ericsson | | | 2,382,422 | | | 0.3 | |
| 355,493 | | | Swedbank AB | | | 4,977,074 | | | 0.7 | |
| | | | | | | 7,359,496 | | | 1.0 | |
| | | | | | | | | | | |
| | | | Switzerland: 4.4% | | | | | | | |
| 72,626 | | | Nestle S.A. | | | 4,200,521 | | | 0.6 | |
| 275,105 | | | Novartis AG | | | 15,498,117 | | | 2.2 | |
| 316,700 | | | STMicroelectronics NV | | | 2,194,683 | | | 0.3 | |
| 90,910 | | | Swiss Re Ltd. | | | 4,963,550 | | | 0.7 | |
| 6,700 | | | Swisscom AG | | | 2,699,043 | | | 0.4 | |
| 125,000 | @ | | UBS AG - Reg | | | 1,579,776 | | | 0.2 | |
| | | | | | | 31,135,690 | | | 4.4 | |
| | | | | | | | | | | |
| | | | United Kingdom: 17.3% | | | | | | | |
| 164,930 | | | AstraZeneca PLC | | | 7,918,141 | | | 1.1 | |
| 1,212,912 | | | BAE Systems PLC | | | 5,378,825 | | | 0.8 | |
| 776,291 | | | Barclays PLC | | | 2,406,455 | | | 0.3 | |
| 190,787 | | | BHP Billiton PLC | | | 6,007,777 | | | 0.9 | |
| 1,077,081 | | | BP PLC | | | 7,926,051 | | | 1.1 | |
| 101,500 | | | BP PLC ADR | | | 4,484,270 | | | 0.6 | |
| 109,000 | | | Ensco International PLC | | | | | | | |
| | | | ADR | | | 5,412,940 | | | 0.8 | |
| 496,090 | | | GlaxoSmithKline PLC | | | 11,133,416 | | | 1.6 | |
| 2,828,220 | | | Home Retail Group | | | 4,563,669 | | | 0.7 | |
| 605,691 | | | HSBC Holdings PLC | | | 5,284,835 | | | 0.8 | |
See Accompanying Notes to Financial Statements
88
| | PORTFOLIO OF INVESTMENTS |
| ING INTERNATIONAL VALUE FUND | AS OF OCTOBER 31, 2011 (CONTINUED) |
| | | | | | | | | | Percentage | |
| | | | | | | | | | of Net | |
| Shares | | | | | | Value | | | Assets | |
| COMMON STOCK: (continued) | | | | | | | |
| | | | United Kingdom: (continued) | | | | | | | |
| 117,277 | | | Imperial Tobacco Group | | | | | | | |
| | | | PLC | | $ | 4,272,033 | | | 0.6 | |
| 1,595,534 | @ | | ITV PLC | | | 1,634,811 | | | 0.2 | |
| 601,500 | | | Kingfisher PLC | | | 2,492,068 | | | 0.4 | |
| 2,289,683 | | | Legal & General Group | | | | | | | |
| | | | PLC | | | 4,033,524 | | | 0.6 | |
| 2,750,039 | @ | | Lloyds TSB Group PLC | | | 1,422,107 | | | 0.2 | |
| 469,251 | | | Marks & Spencer Group | | | | | | | |
| | | | PLC | | | 2,419,273 | | | 0.3 | |
| 352,485 | | | Prudential PLC | | | 3,640,852 | | | 0.5 | |
| 80,264 | | | Rio Tinto PLC | | | 4,342,189 | | | 0.6 | |
| 194,022 | | | Standard Chartered | | | | | | | |
| | | | PLC | | | 4,527,367 | | | 0.6 | |
| 1,423,859 | | | Tesco PLC | | | 9,180,199 | | | 1.3 | |
| 4,010,797 | | | Vodafone Group PLC | | | 11,136,709 | | | 1.6 | |
| 600,431 | | | WM Morrison | | | | | | | |
| | | | Supermarkets PLC | | | 2,911,740 | | | 0.4 | |
| 68,968 | | | Wolseley PLC | | | 1,988,763 | | | 0.3 | |
| 252,900 | | | WPP PLC | | | 2,617,781 | | | 0.4 | |
| 272,985 | | | Xstrata PLC | | | 4,546,983 | | | 0.6 | |
| | | | | | | 121,682,778 | | | 17.3 | |
| | | | | | | | | | | |
| | | | United States: 2.0% | | | | | | | |
| 163,500 | | | Coca-Cola Enterprises, | | | | | | | |
| | | | Inc. | | | 4,385,070 | | | 0.6 | |
| 87,100 | | | Newmont Mining Corp. | | | 5,820,893 | | | 0.8 | |
| 104,934 | @ | | TE Connectivity Ltd. | | | 3,730,404 | | | 0.6 | |
| | | | | | | 13,936,367 | | | 2.0 | |
| | | | | | | | | | | |
| | Total Common Stock | | | | | | | |
| | (Cost $787,693,887) | | | 708,316,946 | | | 100.7 | |
| | | | | | | | | | | |
| PREFERRED STOCK: 0.5% | | | | | | | |
| | | | Germany: 0.5% | | | | | | | |
| 21,632 | | | Volkswagen AG | | | 3,767,207 | | | 0.5 | |
| | | | | | | | | | | |
| | Total Preferred Stock | | | | | | | |
| | (Cost $3,430,366) | | | 3,767,207 | | | 0.5 | |
| | | | | | | | | | | |
| | Total Long-Term | | | | | | | |
| | Investments | | | | | | | |
| | (Cost $791,124,253) | | | 712,084,153 | | | 101.2 | |
| | | | | | | | | | |
| | | | | | | | | Percentage | |
| Principal | | | | | | | | of Net | |
| Amount† | | | | | Value | | | Assets | |
| SHORT-TERM INVESTMENTS: 0.8% | | | | | | | |
| | | Securities Lending Collateralcc(1): 0.1% | | | | | | | |
| 518,447 | | BNP Paribas Bank, | | | | | | | |
| | | Repurchase Agreement | | | | | | | |
| | | dated 10/31/11, 0.12%, | | | | | | | |
| | | due 11/01/11 (Principal | | | | | | | |
| | | Amount $518,447, | | | | | | | |
| | | collateralized by various | | | | | | | |
| | | U.S. Government | | | | | | | |
| | | Agency | | | | | | | |
| | | Obligations,3.500%- | | | | | | | |
| | | 6.500%, Market Value | | | | | | | |
| | | plus accrued interest | | | | | | | |
| | | $528,816, due | | | | | | | |
| | | 07/01/20-11/01/41) | | | | | | | |
| | | (Cost $518,447) | | | 518,447 | | | 0.1 | |
| | | | | | | | | | Percentage | |
| | | | | | | | | | of Net | |
| Shares | | | | | | Value | | | Assets | |
| | | | Mutual Funds: 0.7% | | | | | | | |
| 5,102,347 | | | BlackRock Liquidity | | | | | | | |
| | | | Funds, TempFund, | | | | | | | |
| | | | Institutional Class | | | | | | | |
| | | | (Cost $5,102,347) | | $ | 5,102,347 | | | 0.7 | |
| | | | | | | | | | | |
| | Total Short-Term | | | | | | | |
| | Investments | | | | | | | |
| | (Cost $5,620,794) | | | 5,620,794 | | | 0.8 | |
| | | | | | | | | | | |
| | Total Investments in | | | | | | | |
| | Securities | | | | | | | |
| | (Cost $796,745,047) | | $ | 717,704,947 | | | 102.0 | |
| | Liabilities in Excess of | | | | | | | |
| | Other Assets | | | (13,924,453 | ) | | (2.0 | ) |
| | Net Assets | | $ | 703,780,494 | | | 100.0 | |
| † | Unless otherwise indicated, principal amount is shown in USD. |
| @ | Non-income producing security |
| | |
| ADR | American Depository 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, 2011. |
| X | Fair value determined by ING Funds Valuation Committee appointed by the Funds’ Board of Directors/Trustees. |
| (1) | Collateral received from brokers for securities lending was invested into these short-term investments. |
Cost for federal income tax purposes is $814,443,065.
Net unrealized depreciation consists of:
| | | | | |
| Gross Unrealized Appreciation | | $ | 51,557,351 | |
| Gross Unrealized Depreciation | | | (148,295,469 | ) |
| Net Unrealized depreciation | | $ | (96,738,118 | ) |
| | Percentage | |
| Sector Diversification | of Net Assets | |
| Consumer Discretionary | 7.7 | % |
| Consumer Staples | 10.0 | |
| Energy | 11.2 | |
| Financials | 19.1 | |
| Health Care | 10.1 | |
| Industrials | 8.8 | |
| Information Technology | 10.1 | |
| Materials | 8.0 | |
| Telecommunications | 12.3 | |
| Utilities | 3.9 | |
| Short-Term Investments | 0.8 | |
| Liabilities in Excess of Other Assets | (2.0 | ) |
| Net Assets | 100.0 | % |
See Accompanying Notes to Financial Statements
89
| | PORTFOLIO OF INVESTMENTS |
| ING INTERNATIONAL VALUE FUND | AS OF OCTOBER 31, 2011 (CONTINUED) |
Fair Value Measurements^
The following is a summary of the fair valuations according to the inputs used as of October 31, 2011 in valuing the assets and liabilities:
| | | Quoted Prices in Active Markets for Identical Investments
(Level 1) | | Significant Other Observable Inputs #
(Level 2) | | Significant Unobservable Inputs
(Level 3) | | Fair Value at 10/31/2011 | |
| Asset Table | | | | | | | | | | | | | |
| Investments, at value | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | |
| Australia | | $ | — | | $ | 8,936,078 | | $ | — | | $ | 8,936,078 | |
| Belgium | | | — | | | 4,712,084 | | | — | | | 4,712,084 | |
| Brazil | | | 16,777,538 | | | — | | | — | | | 16,777,538 | |
| Canada | | | 21,833,726 | | | — | | | — | | | 21,833,726 | |
| China | | | — | | | 12,278,294 | | | 130,625 | | | 12,408,919 | |
| Finland | | | — | | | 13,654,906 | | | — | | | 13,654,906 | |
| France | | | — | | | 69,469,306 | | | — | | | 69,469,306 | |
| Germany | | | — | | | 57,415,646 | | | — | | | 57,415,646 | |
| Hong Kong | | | — | | | 3,191,500 | | | 698,969 | | | 3,890,469 | |
| Ireland | | | — | | | 3,676,743 | | | — | | | 3,676,743 | |
| Israel | | | 4,142,190 | | | — | | | — | | | 4,142,190 | |
| Italy | | | — | | | 36,415,859 | | | — | | | 36,415,859 | |
| Japan | | | 1,906,370 | | | 166,381,978 | | | — | | | 168,288,348 | |
| Luxembourg | | | — | | | 1,709,002 | | | — | | | 1,709,002 | |
| Mexico | | | 2,938,552 | | | — | | | — | | | 2,938,552 | |
| Netherlands | | | — | | | 57,476,099 | | | — | | | 57,476,099 | |
| Portugal | | | — | | | 5,664,182 | | | — | | | 5,664,182 | |
| Singapore | | | — | | | 11,583,520 | | | — | | | 11,583,520 | |
| South Africa | | | — | | | 10,040,448 | | | — | | | 10,040,448 | |
| South Korea | | | 3,836,400 | | | 5,385,181 | | | — | | | 9,221,581 | |
| Spain | | | — | | | 13,947,419 | | | — | | | 13,947,419 | |
| Sweden | | | — | | | 7,359,496 | | | — | | | 7,359,496 | |
| Switzerland | | | — | | | 31,135,690 | | | — | | | 31,135,690 | |
| United Kingdom | | | 9,897,210 | | | 111,785,568 | | | — | | | 121,682,778 | |
| United States | | | 13,936,367 | | | — | | | — | | | 13,936,367 | |
| Total Common Stock | | | 75,268,353 | | | 632,218,999 | | | 829,594 | | | 708,316,946 | |
| Preferred Stock | | | — | | | 3,767,207 | | | — | | | 3,767,207 | |
| Short-Term Investments | | | 5,102,347 | | | 518,447 | | | — | | | 5,620,794 | |
| Total Investments, at value | | $ | 80,370,700 | | $ | 636,504,653 | | $ | 829,594 | | $ | 717,704,947 | |
| ^ | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| # | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Portfolio may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Portfolio’s investments are categorized as Level 2 investments. |
| | |
| | There were no significant transfers between Level 1 and 2 during the year ending October 31, 2011. |
| | |
| | Transfers in or out of Level 3 represent either the beginning value (for transfers in), or the ending value (for transfers out) of any security or derivative instrument where a change in the pricing level occurred from the beginning to the end of the period. Transfers are recognized at the end of the reporting period. |
See Accompanying Notes to Financial Statements
90
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
The Board has a Nominating Committee for the purpose of considering and presenting to the Board candidates it proposes for nomination to fill Independent Trustee vacancies on the Board. The Committee currently consists of all Independent Trustees of the Board (6 individuals). The Nominating Committee operates pursuant to a Charter approved by the Board. The primary purpose of the Nominating Committee is to consider and present to the Board the candidates it proposes for nomination to fill vacancies on the Board. In evaluating candidates, the Nominating Committee may consider a variety of factors, but it has not at this time set any specific minimum qualifications that must be met. Specific qualifications of candidates for Board membership will be based on the needs of the Board at the time of nomination.
The Nominating Committee is willing to consider nominations received from shareholders and shall assess shareholder nominees in the same manner as it reviews its own nominees. A shareholder nominee for director should be submitted in writing to the Fund’s Secretary. Any such shareholder nomination should include at a minimum the following information as to each individual proposed for nomination as trustee: such individual’s written consent to be named in the proxy statement as a nominee (if nominated) and to serve as a trustee (if elected), and all information relating to such individual that is required to be disclosed in the solicitation of proxies for election of trustees, or is otherwise required, in each case under applicable federal securities laws, rules and regulations.
The Secretary shall submit all nominations received in a timely manner to the Nominating Committee. To be timely, any such submission must be delivered to the Fund’s Secretary not earlier than the 90th day prior to such meeting and not later than the close of business on the later of the 60th day prior to such meeting or the 10th day following the day on which public announcement of the date of the meeting is first made, by either disclosure in a press release or in a document publicly filed by the Fund with the Securities and Exchange Commission.
Item 11. Controls and Procedures.
| (a) | | Based on our evaluation conducted within 90 days of the filing date, hereof, the design and operation of the registrant’s disclosure controls and procedures are effective to ensure that material information relating to the registrant is made known to the certifying officers by others within the appropriate entities, particularly during the period in which Forms N-CSR are being prepared, and the registrant’s disclosure controls and procedures allow timely preparation and review of the information for the registrant’s Form N-CSR and the officer certifications of such Form N-CSR. |
| |
| (b) | | There were no significant changes in the registrant’s internal controls that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
| (a)(1) | | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
| |
| (a)(2) | | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT. |
| |
| (b) | | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. |
| |
| (3) | | Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): ING Mayflower Trust
| | | | | |
| By | | /s/ Shaun P, Mathews Shaun P. Mathews | | |
| | President and Chief Executive Officer | | |
Date: January 6, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | | |
| By | | /s/ Shaun P. Mathews Shaun P. Mathews | | |
| | President and Chief Executive Officer | | |
Date: January 6, 2012
| | | | | |
| By | | /s/ Todd Modic Todd Modic | | |
| | Senior Vice President and Chief Financial Officer | | |
Date: January 6, 2012
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