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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05710
---------
ING VP Natural Resources Trust
------------------------------
(Exact name of registrant as specified in charter)
7337 E. Doubletree Ranch Rd., Scottsdale, AZ 85258
--------------------------------------------------
(Address of principal executive offices) (Zip code)
CT Corporation System, 101 Federal Street, Boston, MA 02110
-----------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-992-0180
--------------
Date of fiscal year end: December 31
-----------
Date of reporting period: January 1, 2003 to June 30, 2003
--------------------------------
ITEM 1. REPORTS TO STOCKHOLDERS.
The following is a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1):
SEMI-ANNUAL REPORT
SEMI-ANNUAL REPORT
[PHOTO OF ABACUS]
June 30, 2003
ING VP NATURAL
RESOURCES TRUST
[ING FUNDS LOGO]
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<Table>
President's Letter...................................... 1
Portfolio Managers' Reports............................. 2
Statement of Assets and Liabilities..................... 5
Statement of Operations................................. 6
Statements of Changes in Net Assets..................... 7
Financial Highlights.................................... 8
Notes to Financial Statements........................... 9
Portfolio of Investments................................ 12
Trustee and Officer Information......................... 13
</Table>
(THIS PAGE INTENTIONALLY LEFT BLANK)
PRESIDENT'S LETTER
- --------------------------------------------------------------------------------
[PHOTO]
JAMES M. HENNESSY
Dear Shareholder,
It would be an understatement to refer to this past year as a challenging one
for investors. In the past twelve months, there have been a number of events on
the geopolitical front and numerous economic setbacks that have tested investor
resilience.
We are now in the third year of one of the longest economic downturns in U.S.
history. And although few of us will take much comfort in the fact that we have
coped through a particularly challenging time, perhaps we should.
We at ING Funds remain optimistic about the future. We acknowledge the recent
difficulties, but we also prefer to look at the positives that have emerged in
the wake of those difficulties. For instance, the quick actions on the part of
the financial industry and government regulators following a string of recent
corporate scandals may have helped regain investor trust as well as introduce
new accounting standards that may bring permanent improvements to our industry.
Although I do not wish to overstate my enthusiasm, I do believe that the gradual
market upturn of recent months supports our long-held philosophy that it is
important for investors to remain focused on their long-term goals and maintain
reasonable expectations.
We remain committed to providing quality service and innovative products to help
meet the needs of our investors, and we are excited and optimistic about the
future.
On behalf of ING Funds, I thank you for your continued support and confidence
and look forward to serving you in the future.
Sincerely,
/s/ James M. Hennessy
James M. Hennessy
President
ING Funds
August 15, 2003
1
ING VP NATURAL RESOURCES TRUST PORTFOLIO MANAGERS' REPORT
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER: A team of investment professionals led by James A. Vail, CFA,
Senior Vice President and Portfolio Manager, ING Investments, LLC.
GOAL: The ING VP Natural Resources Trust (the "Trust") seeks long-term growth of
capital through investment primarily in common stocks of companies that own or
develop natural resources and other basic commodities, or supply goods and
services to such companies. Current income will not be a factor. Total return
will consist primarily of capital appreciation.
MARKET OVERVIEW: For the first six months of 2003 the broad category of natural
resource prices experienced a period of volatile swings reflecting concerns over
the war in Iraq, fears of a domestic energy shortage and uncertainty over the
direction of global economies.
Crude oil prices rose to $38 a barrel in February, fell to $25 in April, and
finished the quarter at $30. Natural Gas experienced wide price swings reaching
$9.57 per MCF but ending the quarter at $5.00. Copper was specifically volatile
reaching a high approaching 80 cents per pound in February subsequently trading
off to 71 cents in April and ending at 75 cents. Gold, historically viewed as a
safe haven during times of uncertainty, fulfilled its role as geopolitical
events and US dollar weakness forced the precious metal to a high of $380 per
ounce and then fell to $322 as tensions eased. Other metals experienced price
increases as Chinese demand for raw materials to feed its manufacturing industry
increased dramatically. Paper and forest products pieces were mixed as the
economy grew more modestly than expected.
While the global economy may be recovering, more slowly then we and many others
expected, we remain convinced it is recovering. Fiscal stimulus both in the
United States and abroad should result in expanding economics as 2003 progresses
and we enter 2004. As economies expand the demand for natural resources and
energy should follow, leading to higher prices and improved profits and cash
flows to the providers of these materials.
PERFORMANCE: For the six-months ended June 30, 2003, the Trust, excluding any
charges, provided a total return of 6.19% compared to an 11.77% return for the
Standard & Poor's 500 Index (S&P 500) and an 8.58% return for the Lipper Natural
Resources Index.
PORTFOLIO SPECIFICS: The Trust maintains a broad exposure to natural resources
with 25% invested in intermediates such as paper and forest products; and metals
and 75% in energy related names. Toward the end of the first half, the Trust was
buffeted by sector rotation away from natural resource toward depressed sectors.
For example, the Philadelphia Semiconductor Index (PHLX) is up 24% year to date.
The Amex Biotech Index has gained 25% in the period. After the successful
completion of the Iraqi Campaign, investors sought greater exposure to beta, and
in our opinion used natural resources specifically energy as a source of Funds.
By contrast the Oil Service Index is up 5.9% for the six months ended June 30.
Gas storage levels began to rise unexpectedly as weak demand blunted limited
supplies negatively affecting the relative performance of the energy sector. We
remain convinced energy and energy services will be strong performers as the
world economy grows.
MARKET OUTLOOK: As we enter the second half of 2003, metals prices, specifically
copper, aluminum and nickel have rallied, in our opinion signaling improving
economic activity. The share prices of companies supplying these metals have in
turn appreciated mirroring the metals' rise. Energy-related shares have lagged
as commodity prices continue to ease, but may be ignoring the positive
fundamentals in the sector; specifically increased drilling activity, increased
decline rates in natural gas fields and the potential for improved demand in the
months ahead. As the global economy recovers, that growth should increase the
demand for all natural resources and provide the backdrop for improving equity
prices in the sector.
2
PORTFOLIO MANAGERS' REPORT ING VP NATURAL RESOURCES TRUST
- --------------------------------------------------------------------------------
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED JUNE 30, 2003
------------------------------------------------------------------
1 YEAR 5 YEAR 10 YEAR
------ ------ -------
ING VP Natural Resources Trust 0.09% -0.43% 3.38%
S&P 500 Index(1) 0.25% -1.61% 10.04%
Lipper National Resources Index(2) -2.44% 3.78% 7.60%
</Table>
Based on a $10,000 initial investment, the table above illustrates the total
return of ING VP Natural Resources Trust against the S&P 500 Index and the
Lipper Natural Resources Index. The Indices are unmanaged and have no cash in
their portfolio, impose no sales charges and incur no operating expenses. An
investor cannot invest directly in an index. The Trust's performance is shown
without the imposition of any expenses or charges which are, or may be, imposed
under your annuity contract or life insurance policy. Total returns would have
been lower if such expenses or charges were included.
Performance table does not reflect the deduction of taxes that a shareholder
will pay on Trust distributions or the redemption of Trust shares.
PERFORMANCE DATA REPRESENTS PAST PERFORMANCE AND IS NO ASSURANCE OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE TRUST
WILL FLUCTUATE. SHARES, WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
This report contains statements that may be "forward-looking" statements. Actual
results may differ materially from those projected in the "forward-looking"
statements.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGERS, ONLY
THROUGH THE END OF THE PERIOD AS STATED ON THE COVER. THE PORTFOLIO MANAGERS'
VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND OTHER CONDITIONS.
Trust holdings are subject to change daily.
(1) The S&P 500 INDEX is a widely recognized unmanaged index of 500 common
stocks.
(2) The LIPPER NATURAL RESOURCES INDEX is an unmanaged equally-weighted index of
the largest mutual funds in the Lipper Natural Resources category of funds.
PRINCIPAL RISK FACTOR(S): Since the Fund is a non-diversified investment company
that invests primarily in securities of companies engaged in natural resources
activities, the Fund may be subject to greater risks and market fluctuations
than other funds that are more diversified by industry. The Fund's investments
in foreign securities may involve risks greater than those attendant to
investments in securities of U.S. issuers. This Fund should be considered as a
vehicle for diversification and not as a balanced investment program.
See accompanying index descriptions on page 4.
3
INDEX DESCRIPTIONS
- --------------------------------------------------------------------------------
The AMEX BIOTECHNOLOGY INDEX is an equal dollar weighted index designed to
measure the performance of a cross-section of companies in the biotechnology
industry.
The LIPPER NATURAL RESOURCES INDEX is an unmanaged equally-weighted index of the
largest mutual funds in the Lipper Natural Resources category of funds.
The PHLX OIL SERVICE SECTOR INDEX is a price-weighted index composed of the
common stocks of 15 companies that provide oil drilling and production services,
oil field equipment, support services and geophysical/reservoir services.
The PHLX SEMICONDUCTOR SECTOR INDEX is a price-weighted index composed of 17
U.S. companies primarily involved in the design, distribution, manufacture, and
sale of semiconductors.
The STANDARD & POORS 500 INDEX (S&P 500) is a widely recognized, unmanaged index
of 500 common stocks.
All indices are unmanaged.
An investor cannot invest directly in an index.
4
STATEMENT OF ASSETS AND LIABILITIES as of June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
ASSETS:
Investments in securities at value* $19,498,455
Short-term investments, at amortized cost 202,000
Cash 130
Foreign currency 70,728
Receivables:
Investment securities sold 1,590,200
Dividends and interest 6,020
Prepaid expenses 198
-----------
Total assets 21,367,731
-----------
LIABILITIES:
Payable for investment securities purchased 501,100
Payable for fund shares redeemed 18,765
Payable to affiliates 19,096
Payable for trustee fees 66,838
Other accrued expenses and liabilities 40,796
-----------
Total liabilities 646,595
-----------
NET ASSETS (EQUIVALENT TO $12.91 PER SHARE ON 1,605,152
SHARES OUTSTANDING) $20,721,136
===========
NET ASSETS WERE COMPRISED OF:
Paid-in capital-shares of beneficial interest at no par
value (unlimited shares authorized) $20,414,919
Accumulated net investment loss (68,726)
Accumulated net realized loss on investments and foreign
currencies (529,667)
Net unrealized appreciation of investments and foreign
currencies 904,610
-----------
NET ASSETS $20,721,136
===========
- ------------------
* Cost of securities $18,598,791
** Cost of foreign securities $ 65,782
</Table>
See Accompanying Notes to Financial Statements
5
STATEMENT OF OPERATIONS (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
JUNE 30, 2003
-------------
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $2,664) $ 96,523
Interest 2,646
----------
Total Investment Income 99,169
----------
EXPENSES:
Investment management fees 101,279
Administrative service fees 10,128
Shareholder reporting expense 6,923
Custody and accounting expense 5,973
Transfer agent fees 17,497
Professional fees 20,006
Miscellaneous expense 1,085
Trustees' fees 4,706
Insurance expense 253
Registration and filing fees 45
----------
Total expenses 167,895
----------
Net investment loss (68,726)
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gain on investments 216,148
Net realized gain on foreign currencies 334,638
----------
Net realized gain on investments and foreign currencies 550,786
Net change in unrealized appreciation of investments and
foreign currencies 747,128
----------
Net realized and unrealized gain on investments and
foreign currencies 1,297,914
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,229,188
==========
</Table>
See Accompanying Notes to Financial Statements
6
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 2003 DECEMBER 31, 2002
------------- -----------------
FROM OPERATIONS:
Net investment loss $ (68,726) $ (94,961)
Net realized gain on investments and foreign currencies 550,786 (278,728)
Net change in unrealized appreciation of investments and
foreign currencies 747,128 (362,262)
----------- -----------
Net increase in net assets resulting from operations 1,229,188 (735,951)
----------- -----------
FROM DIVIDENDS TO SHAREHOLDERS:
Net investment income -- (41,560)
----------- -----------
Total distributions -- (41,560)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,591,689 6,211,430
Dividends reinvested -- 41,560
Cost of shares redeemed (4,336,290) (7,979,545)
----------- -----------
Net decrease in net assets resulting from capital share
transactions (1,744,601) (1,726,555)
----------- -----------
Net decrease in net assets (515,413) (2,504,066)
NET ASSETS:
Beginning of period 21,236,549 23,740,615
----------- -----------
End of period $20,721,136 $21,236,549
=========== ===========
Accumulated net investment loss at end of period $ (68,726) $ --
=========== ===========
</Table>
See Accompanying Notes to Financial Statements
7
ING VP NATURAL RESOURCES TRUST (UNAUDITED) FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period.
<Table>
<Caption>
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED -------------------------------------------
JUNE 30, 2003 2002 2001 2000(2) 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 12.12 12.40 14.75 12.51 11.03 14.91
Income (loss) from investment operations:
Net investment income (loss) $ (0.04) (0.05) 0.03 (0.07) 0.06 0.08
Net realized and unrealized gain (loss) on investments $ 0.83 (0.21) (2.38) 2.36 1.50 (2.98)
Total income (loss) from investment operations $ 0.79 (0.26) (2.35) 2.29 1.56 (2.90)
Less distributions from:
Net investment income $ -- 0.02 -- 0.05 0.08 0.08
Net realized gains on investments $ -- -- -- -- -- 0.90
Total distributions $ -- 0.02 -- 0.05 0.08 0.98
Net asset value, end of period $ 12.91 12.12 12.40 14.75 12.51 11.03
TOTAL RETURN(1): % 6.19 (2.10) (15.93) 18.37 14.09 (19.62)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s) $ 20,721 21,237 23,741 32,291 31,737 35,418
Ratio to average net assets:
Expenses(3) % 1.66 1.64 1.35 1.66 1.33 1.29
Net investment income (loss)(3) % (0.68) (0.41) 0.17 (0.53) 0.34 0.42
Portfolio turnover rate % 54 80 85 72 41 74
- ------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Total return is calculated assuming reinvestment of all
dividend and capital gain distributions at net asset value and is not
annualized for periods less than a year.
(2) Effective July 26, 2000, ING Investments, LLC, became the
investment adviser to the Fund.
(3) Ratios are annualized for periods less than a year.
8
NOTES TO FINANCIAL STATEMENTS as of June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION
Organization. ING VP Natural Resources Trust (the "Trust") is an open-end,
non-diversified management investment company registered under the Investment
Company Act of 1940, as amended. The Trust commenced operation in 1991. The
Trust's Investment objective is to seek long-term growth of capital through
investment primarily in common stock of companies, which own, or develop natural
resources and other basic commodities, or supply goods and services to such
companies. With the exception of shares held in connection with initial capital
of the Trust, shares of the Trust are currently being offered only to
participating insurance companies for allocation to certain of their separate
accounts established for the purpose of funding variable annuity contracts and
variable life insurance policies issued by the participating insurance
companies.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by the
Trust in the preparation of its financial statements:
A. Security Valuation. Investments in equity
securities traded on a national securities exchange are valued at the last
reported sale price. Portfolio securities reported by NASDAQ will be
valued at NASDAQ official closing price. Securities traded on an exchange
or NASDAQ for which there has been no sale and securities traded in the
over-the-counter-market are valued at the mean between the last reported
bid and ask prices. All investments quoted in foreign currencies will be
valued daily in U.S. dollars on the basis of the foreign currency exchange
rates prevailing at that time. Debt securities are valued at bid prices
obtained from independent services or from one or more dealers making
markets in the securities. U.S. Government obligations are valued by using
market quotations or independent pricing services which uses prices
provided by market-makers or estimates of market values obtained from
yield data relating to instruments or securities with similar
characteristics.
Securities and assets for which market quotations are not readily
available (which may include certain restricted securities which are
subject to limitations as to their sale) are valued at their fair values
as determined in good faith by or under the supervision of the Trust's
Board of Directors ("Board"), in accordance with methods that are
specifically authorized by the Board. Securities traded on exchanges,
including foreign exchanges, which close earlier than the time that a
Trust calculates its net asset value may also be valued at their fair
values as determined in good faith by or under the supervision of a
Trust's Board, in accordance with methods that are specifically authorized
by the Board. If a significant event which is likely to impact the value
of one or more foreign securities held by a Trust occurs after the time at
which the foreign market for such security (ies) closes but before the
time that the Trust's net asset value is calculated on any business day,
such event may be taken into account in determining the fair value of such
security (ies) at the time the Trust calculates its net asset value. For
these purposes, significant events after the close of trading on a foreign
market may include, among others, securities trading in the U.S. and other
markets, corporate announcements, natural and other disasters, and
political and other events. Among other elements of analysis, the Board
has authorized the use of one or more research services to assist with the
determination of the fair value of foreign securities in light of
significant events. Research services use statistical analyses and
quantitative models to help determine fair value as of the time a Trust
calculates its net asset value. Unlike the closing price of a security on
an exchange, fair value determinations employ elements of judgment, and
the fair value assigned to a security may not represent the actual value
that a Trust could obtain if it were to sell the security at the time of
the close of the NYSE.
Investments in securities maturing in less than 60 days at the date of
acquisition are valued at amortized cost, which, when combined with
accrued interest, approximates market value.
B. Federal Income Taxes. It is the Trust's policy 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 taxable income to its shareholders. Therefore, no
provision for Federal income taxes is required. In addition, by
distributing during each calendar year substantially all of
9
NOTES TO FINANCIAL STATEMENTS as of June 30, 2003 (Unaudited) (Continued)
- --------------------------------------------------------------------------------
its net investment income and net realized capital gains, the Trust
intends not to be subject to any federal excise tax.
C. Distributions. Dividends from net investment
income and net realized capital gains, if any, are normally declared and
paid annually, but the Trust may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal Revenue
Code. Distributions are recorded on the ex-dividend date. The character of
income and gains to be distributed are determined in accordance with
income tax regulations, which may differ from accounting principles
generally accepted in the United States of America.
D. Use of Estimates. Management of the
Portfolios has made certain estimates and assumptions relating to the
reporting of assets, liabilities, income, and expenses to prepare these
financial statements in conformity with accounting principles generally
accepted in the United States of America. Actual results could differ from
these estimates.
E. Foreign Currency Transactions. Assets and
liabilities denominated in foreign currencies are translated into U.S.
dollar amounts at current exchange rates. Purchases and sales of
investments, as well as income and expense items denominated in a foreign
currency, are translated at the rates of exchange prevailing on the
respective dates of such transactions. The Trust does not isolate that
portion of the results of operations resulting from translation gains or
losses due to changes in exchange rates and realized gains and losses on
the settlement of foreign currency denominated receivables and payables.
Realized gains and losses from the sale of foreign currencies as well as
the settlement of forward foreign exchange contracts are separately
disclosed in the statement of operations. The Trust may enter into forward
foreign exchange contracts in order to hedge against foreign currency risk
in the purchase or sale of securities denominated in foreign currency. The
Trust may also enter into such contracts to hedge against changes in
foreign currency exchange rates on portfolio positions. These contracts
are marked to market daily, by recognizing the difference between the
contract exchange rate and the current market rate as unrealized gains or
losses. The Trust authorizes its custodian to place and maintain equity
securities in a segregated account of the Trust having a value equal to
the aggregate amount of the Trust's commitments under forward foreign
currency contracts entered into with respect to position hedges. The Trust
did not have any open forward foreign currency contracts outstanding at
June 30, 2003.
NOTE 3 -- INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
The Trust pays an investment advisory fee to ING Investments, LLC ("Investment
Advisor") at an annual rate of 1.00% of the Trust's average daily net assets.
The Investment Advisor voluntarily agreed to reimburse the Trust if total annual
expenses (including management fees, but excluding interest, taxes, brokerage
commission and extraordinary expenses) exceed 2.50% of the Trust's average net
assets. No reimbursement was required for the period ended June 30, 2003.
ING Funds Services, LLC (the "Administrator") serves as Administrator to the
Trust. The Trust pays the Administrator a fee calculated at an annual rate of
0.10% of the Trust's average daily net assets.
NOTE 4 -- OTHER TRANSACTIONS WITH AFFILIATED AND RELATED PARTIES
At June 30, 2003, the Trust had the following amounts recorded in payable to
affiliates on the accompanying Statements of Assets and Liabilities:
<Table>
<Caption>
ACCRUED
INVESTMENT ACCRUED
MANAGEMENT ADMINISTRATIVE
FEE FEE TOTAL
- ---------- -------------- -------
$17,360 $1,736 $19,096
</Table>
The Trust has adopted a Retirement Policy covering all independent trustees of
the Trust who will have served as an independent trustee for at least five years
at the time of retirement. Benefits under this plan are based on an annual rate
as defined in the plan agreement.
NOTE 5 -- INVESTMENT TRANSACTIONS
The cost of purchases and proceeds from sales of investments for the period
ended June 30, 2003, excluding short-term securities, were $10,759,522 and
$11,841,543, respectively.
10
NOTES TO FINANCIAL STATEMENTS as of June 30, 2003 (Unaudited) (Continued)
- --------------------------------------------------------------------------------
NOTE 6 -- INVESTMENT AND CONCENTRATION RISKS
The Trust makes significant investments in foreign securities and has a policy
of investing in the securities of companies that own or develop natural
resources and other basic commodities, or supply goods and services to such
companies. There are certain risks involved in investing in foreign securities
or concentrating in specific industries such as natural resources that are in
addition to the usual risks inherent in domestic investments. These risks
include those resulting from future adverse political and economic developments,
as well as the possible imposition of foreign exchange or other foreign
governmental restrictions or laws, all of which could affect the market and/or
credit risk of the investments.
NOTE 7 -- CAPITAL SHARE TRANSACTIONS
Transactions in capital shares and dollars were as follows:
<Table>
<Caption>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, 2003 DECEMBER 31, 2002
------------------------ ------------------------
SHARES DOLLARS SHARES DOLLARS
------ ------- ------ -------
Shares sold 223,650 $ 2,591,689 503,557 $ 6,211,430
Reinvestment of dividends -- -- 3,247 41,560
Shares redeemed (370,090) (4,336,290) (670,496) (7,979,545)
-------- ----------- -------- -----------
Net decrease (146,440) $(1,744,601) (163,692) $(1,726,555)
======== =========== ======== ===========
</Table>
NOTE 8 -- FEDERAL INCOME TAXES
During the period ended June 30, 2003, the foreign taxes paid or withheld were
$2,664. 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. You should consult your tax advisor regarding the
appropriate treatment of foreign taxes paid.
Dividends paid by the Trust 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. There were no dividends or distributions to
shareholders for the period ended June 30, 2003.
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 generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. Key
differences are the treatment of short-term capital gains, foreign currency
transactions, organization costs and other temporary differences. To the extend
that these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassifications. To the extent
distributions exceed net investment income and/or net realized capital gains for
tax purposes, they are reported as distributions of paid-in capital.
Capital loss carryforwards, which may be used to offset future realized capital
gains for federal income tax purposes were as follows at December 31, 2002:
<Table>
<Caption>
AMOUNT EXPIRATION DATES
- ---------- ----------------
$1,079,917 2006 - 2010
</Table>
NOTE 9 -- SUBSEQUENT EVENTS
At a special meeting held on July 22, 2003, Shareholders approved a Sub-Advisory
Agreement between ING Investments, LLC and ING Aeltus Investment Management,
Inc., with no change in the Adviser, the portfolio manager(s), or the overall
management fee paid by each Fund.
11
ING VP
NATURAL
RESOURCES
TRUST PORTFOLIO OF INVESTMENTS as of June 30, 2003 (Unaudited)
- --------------------------------------------------------------------------------
<Table>
<Caption>
Shares Value
- -----------------------------------------------------------
COMMON STOCK: 94.1%
COAL: 6.8%
33,000 Consol Energy, Inc. $ 752,730
20,000 Peabody Energy Corp. 662,600
-----------
1,415,330
-----------
FOREST PRODUCTS & PAPER: 3.9%
25,000 Louisiana-Pacific Corp. 279,000
10,000 Weyerhaeuser Co. 534,500
-----------
813,500
-----------
MINING: 19.4%
20,000 Alcoa, Inc. 501,800
10,000,000 @,@@ Anaconda Nickel Ltd. 456,178
100,000 @,@@ AUR Resources, Inc. 253,016
25,000 Freeport-McMoRan Copper &
Gold, Inc. 604,250
7,500 @@ Impala Platinum Holdings
Ltd. 444,262
40,000 @,@@ Meridian Gold, Inc. 446,400
18,500 Phelps Dodge Corp. 701,335
50,000 @@ Placer Dome, Inc. 605,000
-----------
4,012,241
-----------
OIL & GAS SERVICES: 22.1%
15,000 Baker Hughes, Inc. 505,350
12,000 @ Cooper Cameron Corp. 606,240
25,000 Halliburton Co. 578,000
16,700 @ Oil States Intl., Inc. 203,406
8,600 Schlumberger, Ltd. 410,134
16,400 Smith Intl., Inc. 610,572
20,700 Tidewater, Inc. 614,997
25,000 @ Varco Intl., Inc. 496,000
13,000 @ Weatherford Intl. Ltd. 556,140
-----------
4,580,839
-----------
OIL & GAS: 41.9%
10,000 Anadarko Petroleum Corp. 448,000
10,000 @@ Canadian Natural Resources
ltd. 391,900
63,400 Chesapeake Energy Corp. 652,386
14,894 Devon Energy Corp. 800,553
15,000 @@ EnCana Corp. 570,600
30,000 ENSCO Intl., Inc. 817,500
14,000 EOG Resources, Inc. 586,180
18,000 Murphy Oil Corp. 935,280
10,400 @,@@ Nabors Industries Ltd. 419,640
16,500 Noble Energy, Inc. 627,000
17,000 Pioneer Natural Resources
Co. 447,100
26,200 @ Pride Intl., Inc. 493,346
25,000 Rowan Cos., Inc. 572,500
14,000 @ Spinnaker Exploration Co. 365,260
15,000 Valero Energy Corp. 549,300
-----------
8,676,545
-----------
Total Common Stock
(Cost $18,598,791) 19,498,455
-----------
<Caption>
Principal
Amount Value
- -----------------------------------------------------------
SHORT-TERM INVESTMENT: 1.0%
REPURCHASE AGREEMENT: 1.0%
$ 202,000 State Street Repurchase
Agreement, dated
06/30/03, 0.950% due
07/01/03, $202,005 to be
received upon repurchase
(Collateralized by
$205,000 U.S. Treasury
Note, 3.000%, Market
Value $209,869, due
02/29/04) 202,000
-----------
Total Short-Term
Investment
(Cost $202,000) 202,000
-----------
</Table>
<Table>
TOTAL INVESTMENTS IN SECURITIES
(COST $18,800,791)* 95.1% $19,700,455
OTHER ASSETS AND LIABILITIES-NET 4.9 1,020,681
------ -----------
NET ASSETS 100.0% $20,721,136
====== ===========
</Table>
<Table>
@ Non-income producing security
@@ Foreign Issuer
* Cost for federal income tax purposes is the same as for
financial statement purposes. Net unrealized appreciation
consists of:
</Table>
<Table>
Gross Unrealized Appreciation $1,664,523
Gross Unrealized Depreciation (764,859)
----------
Net Unrealized Appreciation $ 899,664
==========
</Table>
See Accompanying Notes to Financial Statements
12
TRUSTEE AND OFFICER INFORMATION (Unaudited)
- --------------------------------------------------------------------------------
The business and affairs of the Trusts are managed under the direction of the
Trusts' Board of Trustees. A Trustee who is not an interested person of the
Trusts, as defined in the 1940 Act, is an independent trustee ("Independent
Trustee"). The Trustees and Officers of the Trust are listed below. The
Statement of Additional Information includes additional information about
trustees of the Registrant and is available, without charge, upon request at
1-800-992-0180.
<Table>
<Caption>
TERM OF OFFICE
POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S)
NAME, ADDRESS AND AGE WITH TRUST TIME SERVED(1) DURING THE PAST FIVE YEARS
- --------------------- ---------------- -------------- --------------------------
INDEPENDENT TRUSTEES
Paul S. Doherty(2) Trustee July 2000 - Mr. Doherty is President and Partner,
7337 E. Doubletree Ranch Rd. Present Doherty, Wallace, Pillsbury and Murphy,
Scottsdale, AZ 85258 P.C., Attorneys (1996 - Present);
Born: 1934 Director, Tambrands, Inc. (1993 - 1998);
and Trustee of each of the funds managed
by Northstar Investment Management
Corporation (1993 - 1999).
J. Michael Earley(3) Trustee February 2002 - President and Chief Executive Officer,
7337 E. Doubletree Ranch Rd. Present Bankers Trust Company, N.A. (1992 -
Scottsdale, AZ 85258 Present).
Born: 1945
R. Barbara Gitenstein(2) Trustee February 2002 - President, College of New Jersey (1999 -
7337 E. Doubletree Ranch Rd. Present Present). Formerly, Executive Vice
Scottsdale, AZ 85258 President and Provost, Drake University
Born: 1948 (1992 - 1998).
Walter H. May(2) Trustee July 2000 - Retired. Formerly, Managing Director and
7337 E. Doubletree Ranch Rd. Present Director of Marketing, Piper Jaffray,
Scottsdale, AZ 85258 Inc.; Trustee of each of the funds
Born: 1936 managed by Northstar Investment
Management Corporation (1996 - 1999).
Jock Patton(2) Trustee July 2000 - Private Investor (June 1997 - Present).
7337 E. Doubletree Ranch Rd. Present Formerly Director and Chief Executive
Scottsdale, AZ 85258 Officer, Rainbow Multimedia Group, Inc.
Born: 1945 (January 1999 - December 2001); Director
of Stuart Entertainment, Inc.; Director
of Artisoft, Inc. (1994 - 1998).
David W.C. Putnam(3) Trustee July 2000 - President and Director, F.L. Putnam
7337 E. Doubletree Ranch Rd. Present Securities Company, Inc. and its
Scottsdale, AZ 85258 affiliates; President, Secretary and
Born: 1939 Trustee, The Principled Equity Market
Fund. Formerly, Trustee, Trust Realty
Trust (December Corp.; Anchor Investment
Trust; Bow 2000 - Present); Ridge Mining
Company and each of the F.L. Putnam
funds managed by Northstar Investment
Foundation Management Corporation (1994
- 1999).
<Caption>
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS AND AGE TRUSTEE HELD BY TRUSTEE
- --------------------- ----------- -------------------
INDEPENDENT TRUSTEES
Paul S. Doherty(2) 111 --
7337 E. Doubletree Ranch Rd.
Scottsdale, AZ 85258
Born: 1934
J. Michael Earley(3) 111 --
7337 E. Doubletree Ranch Rd.
Scottsdale, AZ 85258
Born: 1945
R. Barbara Gitenstein(2) 111 --
7337 E. Doubletree Ranch Rd.
Scottsdale, AZ 85258
Born: 1948
Walter H. May(2) 111 Best Prep Charity (1991 -
7337 E. Doubletree Ranch Rd. Present).
Scottsdale, AZ 85258
Born: 1936
Jock Patton(2) 111 Director, Hypercom, Inc.
7337 E. Doubletree Ranch Rd. (January 1999 - Present); JDA
Scottsdale, AZ 85258 Software Group, Inc. (January
Born: 1945 1999 - Present); Buick of
Scottsdale, Inc.; and National
Airlines, Inc.
David W.C. Putnam(3) 111 Anchor International Bond
7337 E. Doubletree Ranch Rd. (December 2000 - Present);
Scottsdale, AZ 85258 Progressive Capital
Born: 1939 Accumulation Trust (August
1998 - Present); Principled
Equity Market Fund (November
1996 - Present), Mercy
Endowment Foundation (1995 -
Present); Director, F.L.
Putnam Investment Management
Company (December 2001 -
Present); Asian American Bank
and Trust Company (June 1992 -
Present); and Notre Dame
Health Care Center (1991 -
Present) F.L. Putnam
Securities Company, Inc. (June
1978 - Present); and an
Honorary Trustee, Mercy
Hospital (1973 - Present).
</Table>
13
TRUSTEE AND OFFICER INFORMATION (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF OFFICE
POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S)
NAME, ADDRESS AND AGE WITH TRUST TIME SERVED(1) DURING THE PAST FIVE YEARS
- --------------------- ---------------- -------------- --------------------------
INDEPENDENT TRUSTEES
Blaine E. Rieke(3) Trustee February 2001 - General Partner, Huntington Partners
7337 E. Doubletree Ranch Rd. Present (January 1997 - Present). Chairman of
Scottsdale, AZ 85258 the Board and Trustee of each of the
Born: 1933 funds managed by ING Investment
Management Co. LLC (November 1998 -
February 2001).
Roger B. Vincent(3) Trustee February 2002 - President, Springwell Corporation (1989
7337 E. Doubletree Ranch Rd. Present - Present). Formerly, Director Tatham
Scottsdale, AZ 85258 Offshore, Inc. (1996 - 2000).
Born: 1945
Richard A. Wedemeyer(2) Trustee February 2001 - Retired. Mr. Wedemeyer was formerly Vice
7337 E. Doubletree Ranch Rd. Present President -- Finance and Administration,
Scottsdale, AZ 85258 Channel Corporation (June 1996 - April
Born: 1936 2002). Formerly Vice President,
Operations and Administration, Jim
Henson Productions. (1979 - 1997);
Trustee, First Choice Funds (1997 -
2001); and of each of the funds managed
by ING Investment Management Co. LLC
(1998 - 2001).
TRUSTEES WHO ARE "INTERESTED
PERSONS"
Thomas J. McInerney(4) Trustee February 2001 - Chief Executive Officer, ING U.S.
7337 E. Doubletree Ranch Rd. Present Financial Services (September 2001 -
Scottsdale, AZ 85258 Present); General Manager and Chief
Born: 1956 Executive Officer, ING U.S. Worksite
Financial Services (December 2000 -
Present); Member ING Americas Executive
Committee (2001 - Present); President,
Chief Executive Officer and Director of
Northern Life Insurance Company (March
2001 - October 2002), ING Aeltus Holding
Company, Inc. (2000 - Present), ING
Retail Holding Company (1998 - Present),
ING Life Insurance and Annuity Company
(September 1997 - November 2002) and ING
Retirement Holdings, Inc. (1997 -
Present). Formerly, General Manager and
Chief Executive Officer, ING Worksite
Division (December 2000 - October 2001),
President ING-SCI, Inc. (August 1997 -
December 2000); President, Aetna
Financial Services (August 1997 -
December 2000).
<Caption>
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS AND AGE TRUSTEE HELD BY TRUSTEE
- --------------------- ----------- -------------------
INDEPENDENT TRUSTEES
Blaine E. Rieke(3) 111 Morgan Chase Trust Co.
7337 E. Doubletree Ranch Rd. (January 1998 - Present).
Scottsdale, AZ 85258
Born: 1933
Roger B. Vincent(3) 111 Director, AmeriGas Propane,
7337 E. Doubletree Ranch Rd. Inc. (1998 - Present).
Scottsdale, AZ 85258
Born: 1945
Richard A. Wedemeyer(2) 111 Touchstone Consulting Group
7337 E. Doubletree Ranch Rd. (1997 - Present).
Scottsdale, AZ 85258
Born: 1936
TRUSTEES WHO ARE "INTERESTED
PERSONS"
Thomas J. McInerney(4) 165 Director, Hemisphere Inc. (May
7337 E. Doubletree Ranch Rd. 2003 - Present); Equitable
Scottsdale, AZ 85258 Life Insurance Co., Golden
Born: 1956 American Life Insurance Co.,
Life Insurance Company of
Georgia, Midwestern United
Life Insurance Co., ReliaStar
Life Insurance Co., Security
Life of Denver, Security
Connecticut Life Insurance
Co., Southland Life Insurance
Co., USG Annuity and Life
Company, and United Life and
Annuity Insurance Co. Inc
(March 2001 - Present);
Director, Ameribest Life
Insurance Co., (March 2001 to
January 2003); Director, First
Columbine Life Insurance Co.
(March 2001 to December 2002);
Member of the Board, National
Commission on Retirement
Policy, Governor's Council on
Economic Competitiveness and
Technology of Connecticut,
Connecticut Business and
Industry Association,
Bushnell; Connecticut Forum;
Metro Hartford Chamber of
Commerce; and is Chairman,
Concerned Citizens for
Effective Government.
</Table>
14
TRUSTEE AND OFFICER INFORMATION (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF OFFICE
POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S)
NAME, ADDRESS AND AGE WITH TRUST TIME SERVED(1) DURING THE PAST FIVE YEARS
- --------------------- ---------------- -------------- --------------------------
TRUSTEES WHO ARE "INTERESTED
PERSONS"
John G. Turner(5) Trustee July 2000 - Chairman, Hillcrest Capital Partners
7337 E. Doubletree Ranch Rd. Present (May 2002 - Present); President, Turner
Scottsdale, AZ 85258 Investment Company (January 2002 -
Born: 1939 Present). Mr. Turner was formerly Vice
Chairman of ING Americas (2000 - 2002);
Chairman and Chief Executive Officer of
ReliaStar Financial Corp. and ReliaStar
Life Insurance Company (1993 - 2000);
Chairman of ReliaStar United Services
Life Insurance Company (1995 - 1998);
Chairman of ReliaStar Life Insurance
Company of New York (1995 - 2001);
Chairman of Northern Life Insurance
Company (1992 - 2001); Chairman and
Trustee of the Northstar affiliated
investment companies (1993 - 2001) and
Director, Northstar Investment
Management Corporation and its
affiliates (1993 - 1999).
<Caption>
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY OTHER DIRECTORSHIPS
NAME, ADDRESS AND AGE TRUSTEE HELD BY TRUSTEE
- --------------------- ----------- -------------------
TRUSTEES WHO ARE "INTERESTED
PERSONS"
John G. Turner(5) 111 Hormel Foods Corporation
7337 E. Doubletree Ranch Rd. (March 2000 - Present); Shopko
Scottsdale, AZ 85258 Stores, Inc. (August 1999 -
Born: 1939 Present); and M.A. Mortenson
Company (March 2002 -
Present).
</Table>
- ------------------
(1) Trustees serve until their successors are duly elected and qualified,
subject to the Board's retirement policy.
(2) Valuation Committee member.
(3) Audit Committee member.
(4) Mr. McInerney is an "interested person," as defined by the 1940 Act, because
of his affiliation with ING U.S. Worksite Financial Services, an affiliate
of ING Investments, LLC.
(5) Mr. Turner is an "interested person," as defined by the 1940 Act, because of
his affiliation with ING Americas, an affiliate of ING Investments, LLC.
15
TRUSTEE AND OFFICER INFORMATION (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF OFFICE
POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S)
NAME, ADDRESS AND AGE WITH THE TRUST TIME SERVED(1) DURING THE PAST FIVE YEARS
- --------------------- ---------------- -------------- --------------------------
OFFICERS:
James M. Hennessy President and Chief February 2001 - President and Chief Executive Officer of
7337 E. Doubletree Ranch Rd. Executive Officer Present ING Capital Corporation, LLC, ING Funds
Scottsdale, AZ 85258 Chief Operating Services, LLC, ING Advisors, Inc., ING
Born: 1949 Officer July 2000 - Investments, LLC, Lexington Funds
Senior Executive Present Distributor, Inc., Express America T.C.
Vice President July 2000 - Inc. and EAMC Liquidation Corp. (since
Secretary February 2001 December 2001); Executive Vice President
July 2000 - and Chief Operating Officer of ING Funds
February 2001 Distributor, LLC (since June 2000).
Formerly, Executive Vice President and
Chief Operating Officer of ING
Quantitative Management, Inc. (October
2001 to September 2002); Senior
Executive Vice President (June 2000 to
December 2000) and Secretary (April 1995
to December 2000) of ING Capital
Corporation, LLC, ING Funds Services,
LLC, ING Investments, LLC, ING Advisors,
Inc., Express America T.C. Inc., and
EAMC Liquidation Corp.; and Executive
Vice President, ING Capital Corporation,
LLC and its affiliates (May 1998 to June
2000) and Senior Vice President, ING
Capital Corporation, LLC and its
affiliates (April 1995 to April 1998).
Stanley D. Vyner Executive Vice July 2000 - Executive Vice President of ING
7337 E. Doubletree Ranch Rd. President Present Advisors, Inc. and ING Investments, LLC
Scottsdale, Arizona 85258 (July 2000 to present) and Chief
Born: 1950 Investment Officer of the International
Portfolios, ING Investments, LLC (July
1996 to present). Formerly, President
and Chief Executive Officer of ING
Investments, LLC (August 1996 to August
2002).
Michael J. Roland Executive Vice February 2002 - Executive Vice President, Chief
7337 E. Doubletree Ranch Rd. President and Present Financial Officer and Treasurer of ING
Scottsdale, AZ 85258 Assistant Secretary Funds Services, LLC, ING Funds
Born: 1958 Principal Financial July 2000 - Distributor, LLC, ING Advisors, Inc.,
Officer Present ING Investments, LLC (December 2001 to
Senior Vice July 2000 - present), Lexington Funds Distributor,
President February 2002 Inc., Express America T.C. Inc. and EAMC
Liquidation Corp. (since December 2001).
Formerly, Executive Vice President,
Chief Financial Officer and Treasurer of
ING Quantitative Management, Inc.
(December 2001 to October 2002); Senior
Vice President, ING Funds Services, LLC,
ING Investments, LLC, and ING Funds
Distributor, LLC (June 1998 to December
2001) and Chief Financial Officer of
Endeavor Group (April 1997 to June
1998).
Robert S. Naka Senior Vice July 2000 - Senior Vice President and Assistant
7337 E. Doubletree Ranch Rd. President and Present Secretary of ING Funds Services, LLC,
Scottsdale, AZ 85258 Assistant Secretary July 2000 - ING Funds Distributor, LLC, ING
Born: 1963 Present Advisors, Inc., ING Investments, LLC
(October 2001 to present) and Lexington
Funds Distributor, Inc. (since December
2001). Formerly, Senior Vice President
and Assistant Secretary for ING
Quantitative Management, Inc. (October
2001 to October 2002); Vice President,
ING Investments, LLC (April 1997 to
October 1999), ING Funds Services, LLC
(February 1997 to August 1999) and
Assistant Vice President, ING Funds
Services, LLC (August 1995 to February
1997).
Robyn L. Ichilov Vice President and July 2000 - Vice President of ING Funds Services,
7337 E. Doubletree Ranch Rd. Treasurer Present LLC (since October 2001) and ING
Scottsdale, AZ 85258 Investments, LLC (since August 1997);
Born: 1967 Accounting Manager, ING Investments, LLC
(since November 1995).
Kimberly A. Anderson Vice President and February 2001 - Vice President and Assistant Secretary
7337 E. Doubletree Ranch Rd. Secretary Present of ING Funds Services, LLC, ING Funds
Scottsdale, AZ 85258 Assistant Vice July 2000 - Distributor, LLC, ING Advisors, Inc.,
Born: 1964 President and February 2001 ING Investments, LLC (since October
Assistant Secretary 2001) and Lexington Funds Distributor,
Inc. (since December 2001). Formerly,
Vice President for ING Quantitative
Management, Inc. (October 2001 to
October 2002); Assistant Vice President
of ING Funds Services, LLC (November
1999 to January 2001) and has held
various other positions with ING Funds
Services, LLC for more than the last
five years.
Lauren D. Bensinger Vice President February 2003 - Vice President and Chief Compliance
7337 E. Doubletree Ranch Rd. Present Officer, ING Funds Distributor, LLC.
Scottsdale, Arizona 85258 (July 1995 to Present); Vice President
Born: 1954 (February 1996 to Present) and Chief
Compliance Officer (October 2001 to
Present) ING Investments, LLC; Vice
President and Chief Compliance Officer,
ING Advisors, Inc. (July 2000 to
Present), Formerly Vice President and
Chief Compliance Officer ING
Quantitative Management, Inc. (July 2000
to September 2002), and Vice President,
ING Fund Services, LLC (July 1995 to
Present).
</Table>
16
TRUSTEE AND OFFICER INFORMATION (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF OFFICE
POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S)
NAME, ADDRESS AND AGE WITH THE TRUST TIME SERVED(1) DURING THE PAST FIVE YEARS
- --------------------- ---------------- -------------- --------------------------
OFFICERS:
Todd Modic Assistant Vice August 2001 - Vice President of Financial
7337 E. Doubletree Ranch Rd. President Present Reporting-Fund Accounting of ING Funds
Scottsdale, AZ 85258 Services, LLC (September 2002 to
Born: 1967 present). Director of Financial
Reporting of ING Investments, LLC (
March 2001 to September 2002). Formerly,
Director of Financial Reporting, Axient
Communications, Inc. (May 2000 to
January 2001) and Director of Finance,
Rural/Metro Corporation (March 1995 to
May 2000).
Maria M. Anderson Assistant Vice August 2001 - Assistant Vice President of ING Funds
7337 E. Doubletree Ranch Rd. President Present Services, LLC (since October 2001).
Scottsdale, AZ 85258 Formerly, Manager of Fund Accounting and
Born: 1958 Fund Compliance, ING Investments, LLC
(September 1999 to November 2001);
Section Manager of Fund Accounting,
Stein Roe Mutual Funds (July 1998 to
August 1999); and Financial Reporting
Analyst, Stein Roe Mutual Funds (August
1997 to July 1998).
Susan P. Kinens Assistant Vice February 2003 - Assistant Vice President and Assistant
7337 E. Doubletree Ranch Rd. President and Present Secretary, ING Funds Services, LLC
Scottsdale, AZ 85258 Assistant Secretary (December 2002 - Present); and has held
Born: 1976 various other positions with ING Funds
Services, LLC for the last five years.
</Table>
- ------------------
(1) The officers hold office until the next annual meeting of the Trustees and
until their successors have been elected and qualified.
17
INVESTMENT MANAGER
ING Investments, LLC
7337 E. Doubletree Ranch Road
Scottsdale, Arizona 85258
ADMINISTRATOR
ING Funds Services, LLC
7337 E. Doubletree Ranch Road
Scottsdale, Arizona 85258
TRANSFER AGENT
DST Systems, Inc.
P.O. Box 219368
Kansas City, Missouri 64141-6368
CUSTODIAN
State Street Bank & Trust
801 Pennsylvania Avenue
Kansas City, Missouri 64105
LEGAL COUNSEL
Dechert
1775 Eye Street, N.W.
Washington, D.C. 20006
INDEPENDENT AUDITORS
KPMG LLP
99 High Street
Boston, MA 02110-2371
Prospectus containing more complete information regarding the
Fund, including charges and expenses, may be obtained by calling
ING Funds Services, LLC at 1-800-992-0180. Please read the
prospectus carefully before you invest or send money.
[ING FUNDS LOGO] VPNRTSAR0603-081803
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEMS 4-8. [RESERVED]
ITEM 9. 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 or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
(a) Not applicable.
(b) 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. The officer certifications
required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as
EX-99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): ING VP Natural Resources Trust
------------------------------
By /s/ James M. Hennessy
--------------------------------
James M. Hennessy
President and Chief Executive Officer
Date: August 28, 2003
-----------------------------
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/ James M. Hennessy
--------------------------------
James M. Hennessy
President and Chief Executive Officer
Date: August 28, 2003
-----------------------------
By /s/ Michael J. Roland
--------------------------------
Michael J. Roland
Executive Vice President and Chief Financial Officer
Date: August 28, 2003
-----------------------------