<PAGE> 1
NORTH AMERICA
FINANCIAL SERVICE INTERNATIONAL
ING MUTUAL FUNDS
Semi-Annual Report/April 30, 1999
[City Graphic]
[ING FUNDS LOGO]
<PAGE> 2
ING MUTUAL FUNDS SEMI-ANNUAL REPORT
Data as of April 30, 1999
Stock Funds
<TABLE>
<CAPTION>
Cumulative Total Return(1) Cumulative Total Return(1)
Without Sales Charge With Sales Charge
-------------------- -----------------
CLASS A CLASS B CLASS C CLASS X CLASS A(9) CLASS B(10) CLASS C(10)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ING Small Cap Growth Fund (2) 2.60% 2.30% 2.30% - 8.81% - 3.30% - 2.70% 1.30%
- ---------------------------------------------------------------------------------------------------------------------------
ING Focus Fund (3) 19.60 19.30 19.30 9.86 12.72 14.30 18.30
- ---------------------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund (6) 0.90 0.60 0.60 - 4.37 - 4.90 - 4.40 - 0.40
- ---------------------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund (2) 14.30 14.10 14.10 5.45 7.73 9.10 13.10
- ---------------------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund (2) 17.30 17.30 16.90 5.60 10.56 12.30 15.90
- ---------------------------------------------------------------------------------------------------------------------------
ING Growth &Income Fund (3) 10.52 10.39 10.30 3.32 4.16 5.39 9.30
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Cumulative Total Return(1) Fund Schedule of
With Sales Charge Summary Investments
----------------- ------- -----------
CLASS X(10,11)
- --------------------------------------------
<S> <C> <C> <C>
ING Small Cap Growth Fund (2) - 13.37% page 2 page 17
- -----------------------------------------------------------------------
ING Focus Fund (3) 4.86 page 3 page 18
- -----------------------------------------------------------------------
ING Mid Cap Growth Fund (6) - 9.15 page 4 page 19
- -----------------------------------------------------------------------
ING Large Cap Growth Fund (2) 0.45 page 5 page 21
- -----------------------------------------------------------------------
ING Tax Efficient Equity Fund (2) 0.60 page 6 page 22
- -----------------------------------------------------------------------
ING Growth &Income Fund (3) - 1.68 page 7 page 23
- -----------------------------------------------------------------------
</TABLE>
GLOBAL/INTERNATIONAL FUNDS
<TABLE>
<CAPTION>
Cumulative Total Return(1) Cumulative Total Return(1)
Without Sales Charge With Sales Charge
-------------------- -----------------
CLASS A CLASS B CLASS C CLASS X CLASS A(9) CLASS B(10) CLASS C(10)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Bond Funds
- ------------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund (2) - 6.95% - 7.12% - 7.21% - 6.11% - 11.38% - 11.74% - 8.13%
Stock Funds
- -----------------------------------------------------------------------------------------------------------------------------------
INGGlobal Information Technology Fund (2) 20.70 20.40 20.40 - 2.98 13.76 15.40 19.40
- -----------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund (5) 6.90 6.70 6.70 1.33 0.75 1.70 5.70
- -----------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund (8) 12.00 11.80 11.70 9.18 5.56 6.80 10.70
- -----------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund (4) 10.30 10.00 10.00 2.32 3.96 5.00 9.00
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Cumulative Total Return(1) Fund Schedule of
With Sales Charge Summary Investments
----------------- ------- -----------
CLASS X(10,11)
- -------------------------------------------
<S> <C> <C> <C>
Bond Funds
- -------------------------------------------
ING International Bond Fund (2) - 10.78% page 8 page 25
Stock Funds
- -------------------------------------------------------------------------------------
INGGlobal Information Technology Fund (2) - 7.83 page 9 page 26
- -------------------------------------------------------------------------------------
ING European Equity Fund (5) - 3.67 page 10 page 27
- -------------------------------------------------------------------------------------
ING International Equity Fund (8) 4.18 page 11 page 28
- -------------------------------------------------------------------------------------
ING Global Brand Names Fund (4) - 2.68 page 12 page 30
- ------------------------------------------------------------------------------------
</TABLE>
BOND FUNDS
<TABLE>
<CAPTION>
Cumulative Total Return (1) Cumulative Total Return(1)
Without Sales Charge With Sales Charge
CLASS A CLASS B CLASS C CLASS X CLASS A(9) CLASS B(10) CLASS C(10)
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ING High Yield Bond Fund (2) 5.99% 5.69% 5.69% 5.11% 0.94% 0.69% 4.69%
- ------------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund (2) - 0.56 - 0.96 - 0.84 0.12 - 5.29 - 5.84 - 1.81
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Cumulative Total Return(1)
With Sales Charge
----------------- FUND SCHEDULE OF
CLASS X(10,11) SUMMARY INVESTMENTS
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
ING High Yield Bond Fund (2) 0.11% page 13 page 30
- -------------------------------------------------------------------------
ING Intermediate Bond Fund (2) - 4.83 page 14 page 32
- -------------------------------------------------------------------------
</TABLE>
MoneyMarket Funds
<TABLE>
<CAPTION>
7-Day Yield 30-Day Yield FUND
CLASS A CLASS B CLASS C CLASS X CLASS A CLASS B CLASS C CLASS X SUMMARY
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ING Money Market Fund (7, 12) 4.26% 3.51% 3.51% 3.51% 4.26% 3.50% 3.51% 3.51% page 15
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Schedule of
INVESTMENTS
-----------
<S> <C>
ING Money Market Fund (7, 12) page 33
- ---------------------------------------
</TABLE>
[ING FUNDS LOGO]
Shares of ING funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency, and
involve investment risks, including the possible loss of the principal amount
invested.
Past performance cannot guarantee future results. Fund returns include change in
share value and reinvestment of distributions.
1. Cumulative total return (not annualized) since inception. Inception date for
Class A, B and C shares of all funds is 12/15/98. Inception dates for Class X
shares are as noted in the following notes: 2. The inception date is 1/11/99. 3.
The inception date is 1/12/99. 4. The inception date is 1/14/99. 5. The
inception date is 1/15/99. 6. The inception date is 1/19/99. 7. The inception
date is 1/20/99. 8. The inception date is 2/16/99. 9. Class A shares are subject
to the current maximum initial sales charge of 5.75% (stock funds) and 4.75%
(bond funds). 10. The amounts shown assume redemption of Fund shares at the end
of each period indicated. Class B, Class C and Class X shares are subject to a
maximum contingent deferred sales charge of 5%, 1% and 5%, respectively. 11.
Class X shares are offered to qualified investors (including, but not limited
to, IRAs, Roth IRAs, Education IRAs, SEP IRAs, Simple IRAs and 403(b)(7) plans).
Investors purchasing Class X shares will receive bonus shares having a value
equal to 2% of the amount invested. Bonus shares are paid by the Fund's
Distributor. Shares purchased by the reinvestment of dividends or capital gains
distributions are not eligible for bonus shares. Total return for Class X shares
does not include the 2% bonus shares paid by the distributor. 12. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
ING Funds are distributed by ING Funds Distributor, Inc.
1475 Dunwoody Drive, West Chester, PA 19380-1478
MEMBER NASD
<PAGE> 3
A LETTER FROM THE PRESIDENT
[Photo of John J. Pileggi]
JOHN J. PILEGGI
President & CEO
ING Funds
"DOMESTICALLY, THE STRONGEST PERFORMANCE WAS GENERATED BY A FEW VERY LARGE
COMPANIES AND FROM THE TECHNOLOGY SECTOR."
DEAR FELLOW SHAREHOLDER,
We are pleased to present the first ING Funds Semi-Annual Report. While the ING
Funds were only launched in December of last year, a worldwide "who's who" of
large institutional and high net worth investors have relied on the portfolio
management services for decades. Today, the ING Group has over $280 billion in
assets under management, and we are the 30th largest company in the world.
A BUOYANT STOCK MARKET Since the introduction of our fund family, stock markets
around the world have generally posted outstanding results. For the four month
period ended April 30, 1999, the S&P 500 Index has risen 9.05%, and the MSCI
Index of international stocks has generated a 5.00% return. The strength of the
U.S. economy continues to surprise most economists.
Domestically, the strongest performance was generated by a few very large
companies and from the technology sector. As we have seen in recent years, the
performance of a handful of large companies has masked the weakness in other
sectors. This narrow rally concerned many experts, as it showed a lack of
confidence in the broad market. However, in April, we saw a reversal of fortune,
as investors abruptly shifted gears and took renewed interest in economically
sensitive stocks. In addition, Internet stocks continued their dramatic ascent
that began in 1998. In fact, the allure of this sector is something that has
rarely been seen in the financial marketplace.
Internationally, we have seen a strong rebound in many countries. This
occurred after the turmoil surrounding last year's currency crisis and the
Russian economic default. The largest gains occurred in Latin America and the
Asia/Pacific region. Of particular note was the Japanese market, which soared,
as investors believed that reforms might lead to a sustained economic
turnaround.
A MUTED BOND MARKET Many of the factors that caused the stock market to surge
have had a negative impact on the bond market. Concerns have increased that the
booming economy and low unemployment rate might lead to an increase in
inflation. As a result, the 30 year Treasury bond, which hit a record low of
4.72% in early October, stood at 5.66% at the end of April. Yet, it is important
to note, interest rates remain at the lowest levels of the past several decades.
Within the bond market, one of the few bright spots was in the high yield
sector, whose fortunes are more closely tied to the stock market, rather than
the bond market.
IN THIS REPORT On the following pages you will find a complete review of the ING
Funds, including a performance review and commentary of the portfolio managers.
On page 60 we also explain how you can access your account around-the-clock
through our Internet site (www.ingfunds.com) and our automated telephone
information system.
We welcome you to the ING family, and we look forward to serving your needs
in the years to come. Thank you for your confidence in us. We work to earn it
each day.
Sincerely,
/s/ John J. Pileggi
- -------------------
John J. Pileggi
President & CEO
May 20, 1999
ING Funds Semi-Annual Report/April 30, 1999 1
<PAGE> 4
Data as of 4/30/99
ING SMALL CAP GROWTH FUND
FOR AGGRESSIVE INVESTORS SEEKING ABOVE-AVERAGE LONG-TERM GROWTH
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of companies
primarily with market capitalizations of $200 million to $5 billion.
ASSET ALLOCATION(1)
[PIE CHART]
Common Stocks 97.4%
Short-Term Investments 2.6
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Russell Lipper
Without With sales 2500 Small Cap
sales charge charge Growth Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 2.60% - 3.30% 5.34% - 0.07%
----------------------------------------------------------
B Shares 2.30 - 2.70 -- --
---------------------------------------------------------
C Shares 2.30 1.30 -- --
---------------------------------------------------------
X Shares - 8.81 - 13.37 -- --
---------------------------------------------------------
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
TOP FIVE INDUSTRIES(1)
<TABLE>
<S> <C>
Retail 11.5%
----------------------------------------
Advertising 8.7
---------------------------------------
Finance 3.9
---------------------------------------
Medical 3.6
---------------------------------------
Networking Products 3.5
---------------------------------------
</TABLE>
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
Danaher Corp. 3.6%
----------------------------------------
Snyder Communications, Inc. 3.2
---------------------------------------
Bed Bath & Beyond Inc. 2.9
---------------------------------------
United Rentals, Inc. 2.6
---------------------------------------
Abercrombie & Fitch Co. 2.6
---------------------------------------
Protective Life Corp. 2.5
---------------------------------------
Knight/Trimark Group, Inc. 2.4
---------------------------------------
Biogen Inc. 2.4
---------------------------------------
Flowers Industries, Inc. 2.4
---------------------------------------
SunGard Data Systems, Inc. 2.3
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. PLEASE SEE PAGE 16 FOR
FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photos of Paul Berlinguet and E. Anne Underhill]
PAUL BERLINGUET
E. ANNE UNDERHILL
Portfolio Managers
"WE HAVE INCREASED OUR EXPOSURE TO THE INTERNET SECTOR -- PRIMARILY THROUGH
COMPANIES THAT ARE ALREADY SEEING POSITIVE EARNINGS BENEFITS."
Question: How has the Fund fared since its inception?
Answer: The Fund underperformed its benchmark, the Russell 2500 Growth Index.
This was due to two major factors. First, as the Fund was launched we had
relatively low diversification versus the benchmark. This situation has been
remedied, as we now hold 73 securities. Second was the impact of Internet
stocks in the index's performance. A small group of mostly unprofitable
companies has provided most of the positive performance in small cap issues.
Question: Does the Fund invest in any Internet companies?
Answer: We have increased our exposure to the Internet sector -- primarily
through companies that are already seeing positive earnings benefits.
Current holdings include Ameritrade and E-Trade, which are leaders in
on-line investing and 24-7 Media, a top Internet advertising firm.
Question: Which investment strategies enhanced the Fund's performance?
Answer: Two strong areas were Finance and Producer Durables, where we had both
positive industry and stock selection. We purchased financial data
processing company, FiServ, as well as Zions Bancorp. On the Producer
Durables side, our best performing stock was Waters Corp, a manufacturer of
high-performance analytical instruments.
Question: What are some of the other themes you are currently pursuing?
Answer: We remain focused on companies that are using technology to drive down
costs. Examples include CDW, that uses the Internet and a superior
distribution model to sell computers and peripherals at much higher margins
than their traditional retail competitors, and Nextlink Communications,
which uses wireless technology to bypass the traditional local telephone
carrier.
Question: Have there been any areas that did not perform well for the Fund?
Answer: Our underweight positions in Energy and Utilities detracted from
performance. Our energy position is likely to remain low, given the lack of
attractive investment opportunities. However, in the fast-growing Utility
area we have been adding telecom service names like McLeodUSA, NextLink, and
Teligent.
Question: What is your outlook for small caps?
Answer: We see some encouraging signs in the small cap market. Strong merger and
acquisition activity suggests that corporate buyers are recognizing value
within the area. We have also seen an increase in the IPO backlog, pointing
to increased investor interest in the group. On a valuation basis, small cap
stocks are at their cheapest levels in recent history, and a strengthening
global economy could increase an interest for small cap stocks.
SEE PAGE 17 FOR FINANCIAL DETAILS.
2 ING Funds Semi-Annual Report / April 30, 1999 [ING Funds Logo]
<PAGE> 5
Data as of 4/30/99
ING FOCUS FUND
For investors seeking long-term growth from a non-diversified equity portfolio
OBJECTIVE
GROWTH OF CAPITAL through
investment in a non-diversified
portfolio of approximately
20 - 40 stocks.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
Common Stocks 90.1%
Short-Term Investments 9.9
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Without With sales Russell Cap. App.
sales charge charge 1000 Fund Avg(2)
--------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares 19.60% 12.72% 6.64% 8.38%
--------------------------------------------------------------
B Shares 19.30 14.30 -- --
--------------------------------------------------------------
C Shares 19.30 18.30 -- --
--------------------------------------------------------------
X Shares 9.86 4.86 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/12/99.
TOP FIVE INDUSTRIES(1)
<TABLE>
<S> <C>
Telephone 7.5%
----------------------------------------
Application Software 5.8
----------------------------------------
Telecommunication Services 5.1
----------------------------------------
Finance 5.0
----------------------------------------
Medical 3.8
</TABLE>
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
Capital One Financial Corp. 4.4%
----------------------------------------
Fred Meyer, Inc. 4.1
----------------------------------------
Reynolds Metals Co. 4.0
----------------------------------------
Bell Atlantic Corp. 3.9
----------------------------------------
General Instrument Corp. 3.9
----------------------------------------
Siebel Systems, Inc. 3.7
----------------------------------------
The Bank of New York Co., Inc. 3.6
----------------------------------------
Parametric Technology Corp. 3.5
----------------------------------------
American International Group, Inc. 3.4
----------------------------------------
The TJX Cos., Inc. 3.3
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTOS OF MICHAEL L. KASS AND ADRIAN JONES]
MICHAEL L. KASS
ADRIAN JONES
Portfolio Managers
"This can lead to
compelling money-
making opportunities
for the patient
investor."
SEE PAGE 18 FOR FINANCIAL DETAILS.
QUESTION: How has the Focus Fund performed since its inception?
ANSWER: The Fund has posted strong results -- outperforming its benchmark, the
Russell 1000 Index.
QUESTION: Could you explain how you go about selecting securities for the Fund?
ANSWER: While we organize the portfolio around themes, we conduct bottom-up,
fundamental research to help us select companies that are expected to
improve returns on capital which drives earnings growth.
QUESTION: What themes are you currently focusing on for the Fund?
ANSWER: Three of our major themes are Media/ Bandwidth, Enterprise Data
Management, and Reflation.
QUESTION: Which themes performed well?
ANSWER: Media/Bandwidth continued as our largest contributor, and is actually
two themes that have blended into one. This occurred when AT&T's purchase of
TCI shifted the focus of cable stocks' value away from their traditional
role as a broadcast medium, and towards their new potential for telephony
and Internet access. While we owned TCI and, therefore, now own AT&T,
another example of a winning holding in this area is NTL, Inc. It has
developed an integrated, high capacity, high-speed network that offers
residential telephone, cable television and business telecommunications
services to a quarter of the United Kingdom's population.
Enterprise Data Management was another success. With this theme we seek
companies that help businesses share, manage and secure their data. We also
look for firms that help break down the barriers between operating systems
and processing architectures. EMC Corp. continues to produce very strong
results. And we increased our position in Parametric Technology, which has
benefited from the launch of its innovative data management product.
QUESTION: How have the Fund's financial holdings fared?
ANSWER: We have seen average results. We obtained very strong performances from
Capital One and AIG (previously our holding in SunAmerica, which merged with
AIG). These successes were offset by weakness in our holdings in the Bank of
New York, Freddie Mac and Finova.
QUESTION: What is your outlook for the Fund?
ANSWER: While the larger picture remains as difficult as ever to assess, we
continue to find companies capitalizing on our investment themes in new and
profitable ways. This can lead to compelling opportunities for the patient
investor. While we expect a market consolidation at some point, we remain
optimistic about the companies and industries around which we have shaped
the portfolio.
[ING FUNDS LOGO] ING Funds Semi-Annual Report / April 30, 1999 3
<PAGE> 6
Data as of 4/30/99
ING MID CAP GROWTH FUND
For investors seeking long-term growth
OBJECTIVE
GROWTH OF CAPITAL through investment
in a diversified portfolio of companies
primarily with market capitalizations
of $500 million to $7.5 billion.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 95.7%
- - Short-Term Investments 4.3
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Russell Lipper
Without With sales Mid Cap Mid Cap
sales charge charge Growth Fund Avg(2)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares 0.90% -4.90% 7.01% 5.61%
------------------------------------------------------------------------
B Shares 0.60 -4.40 -- --
------------------------------------------------------------------------
C Shares 0.60 -0.40 -- --
------------------------------------------------------------------------
X Shares - 4.37 -9.15 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/19/99.
TOP FIVE INDUSTRIES(1)
<TABLE>
<S> <C>
Medical 10.3%
----------------------------------------
Banks 5.9
----------------------------------------
Commercial Services 5.8
----------------------------------------
Circuits 5.3
----------------------------------------
Telecommunication Equipment 4.9
</TABLE>
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
S&P 400 Mid Cap Depository Receipt 4.9%
----------------------------------------
Paychex, Inc. 2.4
----------------------------------------
Linear Technology Corp. 2.3
----------------------------------------
City National Corp. 2.0
----------------------------------------
Linen 'n Things, Inc. 2.0
----------------------------------------
Electronics for Imaging, Inc. 1.9
----------------------------------------
Gulfstream Aerospace Corp. 1.9
----------------------------------------
ADC Telecommunications, Inc. 1.8
----------------------------------------
AmeriSource Health Corp. 1.7
----------------------------------------
American Management Systems, Inc. 1.7
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTOS OF MATTHEW S. PRICE AND DAVID C. CAMPBELL]
MATTHEW S. PRICE
DAVID C. CAMPBELL
Portfolio Managers
"The Fund has
benefited from
events unfolding
in the cable
industry."
SEE PAGE 19 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed relative to its benchmark, the Russell
Mid-Cap Index?
ANSWER: It has underperformed its benchmark due to several factors. First, the
Fund has a somewhat smaller-cap bias than the mid-cap benchmark. This
negatively affected performance, as these securities underperformed their
counterparts with relatively larger capitalizations.
Second, our investment style stresses proven companies with moderate
growth characteristics. While this strategy is often valued by investors,
recently investment dollars have been chasing more spectacular growth, or
dramatic investment concepts.
QUESTION: Does the Fund have any exposure to the Internet sector?
ANSWER: We have not been investing in the Internet area, which has been to our
disadvantage. Our absence from the sector is due to our adherence to a
discipline that focuses on earnings growth and reasonable valuation, as well
as relative price strength. Most companies in the Internet industry have yet
to turn a profit, and their valuations are astronomical compared to
historical standards.
QUESTION: Can you give some examples of holdings that performed well for the
Fund?
ANSWER: Our bottom-up investment approach has surfaced several stocks in new
attractive areas that have been buoyed by the market. For example, the Fund
has benefited from events unfolding in the cable industry. Investors have
embraced this sector, as it appears that cable may offer the best pipeline
for delivery of Internet and other new services. The Fund's investments in
this area include ADC Telecom and General Instrument.
Another area of success has been driven by an uptick in industrial
production. With the strength of the economy, our holdings in
multi-industry companies such as Danaher and Pentair have performed well.
QUESTION: How have the Fund's healthcare stocks performed?
ANSWER: The returns of several investments in the healthcare area were hurt, due
to federal budget deliberations and the mild winter. These discussions
concerned investors, as fears arose that they could lead to pricing
pressures in the industry.
QUESTION: What is your outlook for the Fund?
ANSWER: We do not predict the direction of the economy or the market, but
instead are bottom-up stock pickers who believe in being fully invested.
Having said that, we feel strongly that the relatively weak performance of
mid- and small-cap stocks has resulted in a dramatic undervaluation in
these sectors. This trend should reverse itself when investors realize the
long-term opportunities these stocks offer.
4 ING Funds Semi-Annual Report / April 30, 1999 [ING FUNDS LOGO]
<PAGE> 7
Data as of 4/30/99
ING LARGE CAP GROWTH FUND
For investors seeking long-term growth
OBJECTIVE
GROWTH OF CAPITAL through investment
in a diversified portfolio of companies
primarily with market capitalizations
of $1 billion or more.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 98.1%
- - Short-Term Investments 1.9
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Without With sales Mid Cap
sales charge charge S&P 500 Fund Avg(2)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares 14.30% 7.73% 6.76% 7.32%
------------------------------------------------------------------------
B Shares 14.10 9.10 -- --
------------------------------------------------------------------------
C Shares 14.10 13.10 -- --
------------------------------------------------------------------------
X Shares 5.45 0.45 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Retail 11.9%
----------------------------------------
Computers 10.8
----------------------------------------
Diversified Manufacturing 7.7
Operations
----------------------------------------
Medical-Drugs 7.4
----------------------------------------
Banks 6.9
TOP TEN HOLDINGS(1)
Wal-Mart Stores, Inc. 5.0%
----------------------------------------
Microsoft Corp. 4.5
----------------------------------------
MCI WorldCom, Inc. 4.2
----------------------------------------
General Electric Co. 3.8
----------------------------------------
IBM Corp. 3.5
----------------------------------------
The Home Depot, Inc. 3.4
----------------------------------------
Wells Fargo Co. 3.4
----------------------------------------
Intel Corp. 3.2
----------------------------------------
American International Group, Inc. 3.1
----------------------------------------
Citigroup Inc. 2.9
----------------------------------------
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTO OF WILLIAM H. THOMAS]
WILLIAM H. THOMAS
Portfolio Management
Team Leader
"Leading consumer
growth stocks
performed well during
the period, aided
by continued strong
growth in real
consumer income and
consumer spending."
SEE PAGE 21 FOR FINANCIAL DETAILS.
QUESTION: What were the factors behind the Fund's performance record?
ANSWER: Since its inception, the Fund outperformed its benchmark, the S&P 500
Index. Returns were somewhat muted during the month of April, as the market
witnessed a very severe rotation away from the large, dominant companies
that have led the market for much of the past three years, toward the more
economically cyclical issues.
QUESTION: What caused the shift in preference to cyclical issues?
ANSWER: This rotation was prompted by surprisingly strong economic growth during
the first quarter, rising energy prices and the back up in long term
interest rates.
QUESTION: What were some the Fund's better performers?
ANSWER: Our leading consumer growth stocks performed well, aided by continued
strong growth in real consumer income and consumer spending. Furthermore,
these companies are leading consolidation in many sectors of retail
activity, due to their aggressive pricing and effective execution
strategies. Examples of holdings are Wal-Mart, Gap and Staples.
Technology also continues to be a strong sector, as earnings are powered
by trends such as the Internet, the explosion of data, and the convergence
of servers in the corporate environment. Portfolio winners include Cisco,
EMC Corp. and Dell Computer.
QUESTION: What areas hurt performance?
ANSWER: Generally, the more defensive, stable growth stocks did not perform well
in April when the rotation toward cyclical issues took place. The portfolio
also overweighted health care stocks, which underperformed. While the
portfolio was only neutrally weighted in financial stocks, the Fund was
hurt by its exposure to several banks that underperformed as interest rates
rose.
QUESTION: What market trends are you now focusing on?
ANSWER: The strong performance of the U.S. economy and the stabilization in
markets overseas could support a resumption of earnings growth for the S&P
500 Index. However, we believe economic growth for the year will remain
moderate. And we don't believe an uptick in inflation is at hand, as many
industries face overcapacity, wage pressures are benign, and price
competition remains intense.
QUESTION: How do you anticipate positioning the portfolio going forward?
ANSWER: We believe a modest broadening of the market is justified as the global
outlook improves. Accordingly, we are increasing holdings of multinational
stocks and other well-positioned U.S. companies.
[ING FUNDS LOGO] Semi-Annual Report / April 30, 1999 5
<PAGE> 8
Data as of 4/30/99
ING TAX EFFICIENT EQUITY FUND
For investors seeking long-term growth with minimum tax consequences
OBJECTIVE
HIGH TOTAL RETURN on an after-
tax basis through a diversified
portfolio of stocks.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 87.8%
- - Short-Term Investments 12.2
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Without With sales Growth
sales charge charge S&P 500 Fund Avg(2)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares 17.30% 10.56% 6.76% 7.32%
------------------------------------------------------------------------
B Shares 17.30 12.30 -- --
------------------------------------------------------------------------
C Shares 16.90 15.90 -- --
------------------------------------------------------------------------
X Shares 5.60 0.60 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Banks 8.3%
----------------------------------------
Medical 6.3
----------------------------------------
Retail 5.9
----------------------------------------
Oil 5.2
----------------------------------------
Diversified Manufacturing
Operations 5.0
TOP TEN HOLDINGS(1)
General Electric Co. 3.4%
----------------------------------------
IBM Corp. 2.7
----------------------------------------
Bank One Corp. 2.4
----------------------------------------
BankAmerica Corp. 2.0
----------------------------------------
Mobil Corp. 1.9
----------------------------------------
Household International, Inc. 1.9
----------------------------------------
Fannie Mae 1.8
----------------------------------------
Microsoft Corp. 1.7
----------------------------------------
First Union Corp. 1.7
----------------------------------------
Intel Corp. 1.6
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTOS OF BOB SANDRONI, CARL GOLDSMITH AND MARLA RYAN]
BOB SANDRONI
CARL GOLDSMITH
MARLA RYAN
Portfolio Managers
"One of our top
holdings was
Microsoft, which
continues to
post outstanding
results."
SEE PAGE 22 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed since its inception?
ANSWER: The Fund has produced exceptional results, exceeding the return of the
S&P 500 Index.
QUESTION: What is behind these strong results?
ANSWER: Our stock selection process has been very successful at unearthing
quality performers. This has been no small feat, given that the stock
market's rally has been extremely narrow for much of the period.
QUESTION: Why has the market's rally been limited to so few companies?
ANSWER: Since economic growth is largely occurring only domestically, and in
certain sectors of the economy, not all companies are benefiting from the
current economic prosperity. For example, during the first quarter of 1999,
just 21 large-cap stocks accounted for the entire gain of S&P 500 Index.
QUESTION: Can you give us some examples of holdings that performed well for the
Fund?
ANSWER: One of our top holdings was Microsoft, which continues to post
outstanding results. In recent months the firm has aggressively been
working to position itself as the software supplier of choice for set-top
boxes that are used in cable networks to deliver interactive TV and
Internet service. This is an extremely important strategy, as Microsoft
wants to be sure its PC operating systems are relevant in the world of
broadband telecommunications. The firm's partnership with AT&T was just one
of its moves in this area.
Cisco Systems also enhanced the Fund's performance. The firm recently
posted its fifth consecutive quarter of accelerated growth, surpassing
analysts expectations. This expansion is being fueled by the increase in
Internet usage and the rewiring telecommunications companies are doing to
meet the capacity of telephone calls and data traffic.
QUESTION: Has the Fund's exposure to the industrial sector aided performance?
ANSWER: The industrial sector has been suffering several months of weak
activity. This was in response to inventory liquidation and lost
opportunities due to the Asian crisis. However, we're beginning to see
signs of improvement, with an uptick in both the levels of current
production and new orders.
QUESTION: How is the Fund currently positioned?
ANSWER: We'll continue to maintain a diversified portfolio, and currently plan
to maintain our over-weighted position in the industrial sector. This could
lead to continued strong results for shareholders, as the potential upside
in this sector could be large, based on our belief that current valuations
are extremely depressed.
6 ING Funds Semi-Annual Report / April 30, 1999 [ING FUNDS LOGO]
<PAGE> 9
Data as of 4/30/99
ING GROWTH & INCOME FUND
FOR INVESTORS SEEKING LONG-TERM TOTAL RETURNS
OBJECTIVE
HIGH TOTAL RATES OF RETURN through investment in a diversified portfolio of
primarily income-producing stocks.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
- - Common Stocks 96.2%
- - Short-Term Investments 3.8
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Growth
Without With sales & Income
sales charge charge S&P 500 Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 10.52% 4.16% 6.76% 7.74%
---------------------------------------------------------------------------
B Shares 10.39 5.39 -- --
---------------------------------------------------------------------------
C Shares 10.30 9.30 -- --
---------------------------------------------------------------------------
X Shares 3.32 -1.68 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/12/99.
TOP FIVE INDUSTRIES(1)
<TABLE>
<S> <C>
Medical 9.6%
---------------------------------------------------------------------------
Telephones 7.6
---------------------------------------------------------------------------
Retail 5.7
---------------------------------------------------------------------------
Electronic Components 5.6
---------------------------------------------------------------------------
Banks 5.5
</TABLE>
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
S&P's Depository Receipts 4.3%
---------------------------------------------------------------------------
Microsoft Corp. 4.0
---------------------------------------------------------------------------
Citigroup Inc. 3.4
---------------------------------------------------------------------------
General Electric Co. 3.1
---------------------------------------------------------------------------
American Home Products Corp. 2.7
---------------------------------------------------------------------------
Ameritech Corp. 2.7
---------------------------------------------------------------------------
Sun Microsystems, Inc. 2.6
---------------------------------------------------------------------------
Bellsouth Corp. 2.5
---------------------------------------------------------------------------
Merck & Co., Inc. 2.4
---------------------------------------------------------------------------
Bristol-Myers Squibb Co. 2.4
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photo of David Kushner and Martin Jansen]
DAVID KUSHNER
MARTIN JANSEN
Portfolio Managers
"SUN MICROSYSTEMS HAS BEEN A BENEFICIARY OF THE INCREASING POPULARITY OF THE
INTERNET."
SEE PAGE 23 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed relative to its benchmark, the S&P 500
Index?
ANSWER: Since its inception the Fund has performed well -- outperforming the
6.76% return of the Index.
QUESTION: Can you describe the investment environment thus far in 1999?
ANSWER: The stock market's ascent remained extremely narrow. Only about ten
percent of the stocks in the S&P 500 accounted for all of the Index
performance. This narrow market created a scenario where the vast majority
of active investment managers underperformed the Index.
QUESTION: Has the Fund's large position in Citigroup been beneficial?
ANSWER: Citigroup has been one of our best performers. The firm has shown great
leadership in the consolidation of the financial services industry. And it
has a management team focused on bringing synergies to bear in their diverse
operations.
QUESTION: Does the Fund have any exposure to the technology sector.
ANSWER: Part of our strategy is to always have exposure to all sectors of the
market, limiting our sector bets relative to the benchmark. As such, we own
several securities in this sector. Two examples are Microsoft and Sun
Microsystems. Microsoft has been rewarded for its acquisitions and
partnerships related to broadband telecommunications, as well as for its
dominance of desktop software.
As the "owner" of the Java programming script, as well as a provider of
high end Internet servers, Sun Microsystems has been a beneficiary of the
increasing popularity of the Internet.
QUESTION: Were there any holdings that were a drain on returns?
ANSWER: Our two biggest portfolio "hits" came from technology stocks that missed
their earnings targets. Cadence Design saw a slowing in their primary market
of integrated circuit design tools, while Compaq was caught in a transition
from being a channel distributor to a mixed channel/direct distributor of
computers.
QUESTION: What is your outlook for the stock market for the remainder of the
year?
ANSWER: The crucial question remains whether we are at the dawn of a broadly
based global recovery, with the attendant interest and inflation pressures.
Or, will global excess capacity ensure that both inflation and profitability
will remain muted. We are inclined to take the latter view, but given the
uncertainties we remain firmly sector neutral. At current market levels,
upside potential could be somewhat limited. And the downside risks inherent
in both scenarios suggest that continued caution is warranted.
[ING FUNDS LOGO] ING Funds Semi-Annual Report / April 30, 1999 7
<PAGE> 10
DATA AS OF 4/30/99
ING INTERNATIONAL BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME AND GROWTH POTENTIAL
OBJECTIVE
HIGH TOTAL RETURN through investment in a non-diversified portfolio of bonds
from issuers generally outside of the U.S.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<CAPTION>
<S> <C>
- - Foreign Gov. Bonds 83.3%
- - U.S. Gov. Agencies 3.8
- - U.S. Corporate Bonds 3.8
- - U.S. Treasury Obligations 3.7
- - Repurchase Agreement 5.4
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Salomon
Bros. Non- Lipper
U.S. World Int'l
Without With sales Gov. Bond Income
sales charge charge Index Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares -6.95% -11.38% -5.37% -2.74%
-----------------------------------------------------------------------
B Shares -7.12 -11.74 -- --
-----------------------------------------------------------------------
C Shares -7.21 -8.13 -- --
-----------------------------------------------------------------------
X Shares -6.11 -10.78 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
CREDIT ALLOCATION(1)
<TABLE>
<CAPTION>
<S> <C>
U.S. Treasury 3.7%
----------------------------------------------------------------------------
AAA/Aaa 57.9
----------------------------------------------------------------------------
AA/Aa 21.4
----------------------------------------------------------------------------
Repurchase Agreement 5.4
----------------------------------------------------------------------------
NR 11.6
</TABLE>
REGIONAL BREAKDOWN(1)
<TABLE>
<CAPTION>
<S> <C>
Europe 56.0%
----------------------------------------------------------------------------
Pacific Rim 23.4
----------------------------------------------------------------------------
North America 20.6
</TABLE>
TOP FIVE COUNTRIES(1)
<TABLE>
<CAPTION>
<S> <C>
United States 16.7%
----------------------------------------------------------------------------
Japan 15.1
----------------------------------------------------------------------------
Germany 11.1
----------------------------------------------------------------------------
France 9.6
----------------------------------------------------------------------------
Australia 8.3
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photo of Paul Thursby]
PAUL THURSBY
Portfolio Management
Team Leader
"THE FUND'S EXPOSURE TO STERLING BONDS AS A COUNTRY BET, AND AN OVERWEIGHT
DURATION IN UK BONDS, LED TO FAVORABLE RESULTS."
SEE PAGE 25 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed relative to its benchmark?
ANSWER: Since its inception, the Fund underperformed its benchmark, the Salomon
Brothers Non-U.S. World Government Bond Index.
QUESTION: In general, how have international bonds fared so far in 1999?
ANSWER: As a whole, international bonds have not performed terribly well this
year--especially compared to the strong returns they posted in 1998.
QUESTION: Were there any bond markets that did well in recent months?
ANSWER: An exception has been the Japanese bond market. A persistent recession,
low consumer confidence and disinflation led to a surprise cut in interest
rates by the Bank of Japan. Unfortunately, like many investment managers,
the Fund was underweight in Japan, as we saw little value in their
securities.
QUESTION: How has the new Euro currency fared since it was introduced?
ANSWER: The Fund had an overweighting in the Euro, as we believed it would
perform strongly. However, the Euro fell relative to the U.S. dollar, as
investors were disenchanted with underlying economic conditions. In
addition, the outbreak of the Balkan war led to increased uncertainty among
investors and a setback for the Euro.
QUESTION: What strategies were used to enhance returns?
ANSWER: The U.K. has been one of the best performing bond markets recently. The
Fund's exposure to Sterling bonds as a country bet, and an overweight
duration in UK bonds, led to favorable results. Several factors led to the
strong performance. The country's low inflationary environment and weak
growth prompted its independent central bank to adopt an easing monetary
policy.
Additionally, we saw an institutional shift into bonds in the UK, due to
pension legislation and prior serious overweight in equities. A mismatched
asset/liability mix became evident as interest rates fell, resulting in a
sharp increase in the demand for long-term UK bonds.
QUESTION: What is your outlook for international bonds?
ANSWER: While the bond markets globally have not started 1999 as well as they
did in 1998, it is our view that we have reached a short-term plateau, and
that later this year the bond rally will pick up speed once again. One of
our strongest convictions is that the indications are pointing towards a
weaker yen. The Yen is overvalued, Japanese asset markets are less
attractive and the current policy environment is less than stable. As a
result, long-term outflows could resume, and a new looser monetary policy is
likely to affect the currency.
8 ING Funds Semi-Annual Report / April 30, 1999 [ING FUNDS LOGO]
<PAGE> 11
ING GLOBAL INFORMATION TECHNOLOGY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of primarily
global information technology stocks.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 94.2%
- - Short-Term Investments 5.8
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Goldman
Sachs Tech. Lipper
Without With sales Industry Sci. & Tech.
sales charge charge Comp. Indx. Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 20.70% 13.76% 24.34% 21.57%
----------------------------------------------------------------------------
B Shares 20.40 15.40 -- --
----------------------------------------------------------------------------
C Shares 20.40 19.40 -- --
----------------------------------------------------------------------------
X Shares -2.98 -7.83 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
TOP FIVE COUNTRIES(1)
<TABLE>
<S> <C>
United States 77.4%
----------------------------------------------------------------------------
Japan 5.5
----------------------------------------------------------------------------
United Kingdom 4.7
----------------------------------------------------------------------------
Netherlands 3.8
----------------------------------------------------------------------------
France 2.8
</TABLE>
REGIONAL BREAKDOWN(1)
<TABLE>
<S> <C>
North America 78.7%
----------------------------------------------------------------------------
Europe 15.8
----------------------------------------------------------------------------
Pacific Rim 5.5
</TABLE>
TOP FIVE HOLDINGS(1)
<TABLE>
<S> <C>
America Online, Inc. 5.4%
----------------------------------------------------------------------------
Microsoft Corp. 4.9
----------------------------------------------------------------------------
Cisco Systems, Inc. 3.7
----------------------------------------------------------------------------
Sun Microsystems, Inc. 3.5
----------------------------------------------------------------------------
IBM Corp. 3.3
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photo of Guy Uding]
GUY UDING
Portfolio Management
Team Leader
"THE FUND FOCUSES ON THEMES THAT ARE NOT LIKELY TO BE SIGNIFICANTLY IMPACTED BY
Y2K."
SEE PAGE 26 FOR FINANCIAL DETAILS.
QUESTION: The global information sector has been one of the stock market's best
performers. How has the Fund fared?
ANSWER: The Fund's returns on an absolute basis have been extremely strong. We
did, however, lag our benchmark, the Goldman Sachs Technology Index. This
was largely due to the fact that the Index contains only U.S. based
companies, whereas the Fund invests globally. Our currency exposure hurt the
Fund, as 25% of its portfolio was invested in Europe, and the Euro
significantly depreciated against the U.S. dollar.
QUESTION: What tactics were used to enhance Fund results?
ANSWER: During the reporting period we increased our exposure to the
semiconductor and semiconductor capital equipment sectors. The key driver
for this rotation was a cyclical recovery after years of depressed earnings.
Other positive factors were the pent-up demand for capacity purchases in the
equipment sector, technology transition in chip design, and continued strong
growth in the PC market--driven by the popularity of the Internet and the
telecom sectors. The Fund's semiconductor holdings, especially those with an
exposure to telecommunications, showed impressive results.
QUESTION: Where did you experience a drag on performance?
ANSWER: One of the themes in the portfolio is "security software." With the
growth of electronic commerce and the Internet we expected security software
vendors to prosper. However, Fund holdings, such as Network Associates and
Axent reported disappointing results, as potential customers gave security a
backseat to Year 2000 issues.
QUESTION: How are you attempting to limit the impact of Year 2000-related
issues?
ANSWER: Although most IT companies have been delivering results that meet or
exceed Wall Street's expectation, the outlook on how Year 2000 plays out
remains unclear. The Fund focuses on themes that are not likely to be
significantly impacted by Y2K, either because they deliver a strategic
competitive advantage, or influence the business processes.
Two examples of themes that are not expected to experience a slowdown
are the infrastructure space and the field of E-commerce. With the growth of
telecommunications and the Internet, transmission storage and processing of
data could continue to be the main driver for IT in the medium term.
QUESTION: What is your outlook for the IT sector and the Fund?
ANSWER: We expect the volatility in the technology sector to remain high. To
help temper this volatility we manage the Fund using a theme basis and will
continue to employ extensive fundamental research on all current and
potential holdings.
[ING FUNDS LOGO] ING Funds Semi-Annual Report / April 30, 1999 9
<PAGE> 12
Data as of 4/30/99
ING EUROPEAN EQUITY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of primarily
European companies.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 99.6%
- - Short-Term Investments 0.4
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Without With sales Euro Rgn.
sales charge charge FT-Europe Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 6.90% 0.75% 8.76% 0.26%
------------------------------------------------------------------------
B Shares 6.70 1.70 -- --
------------------------------------------------------------------------
C Shares 6.70 5.70 -- --
------------------------------------------------------------------------
X Shares 1.33 -3.67 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/15/99.
TOP FIVE COUNTRIES(1)
<TABLE>
<S> <C>
United Kingdom 35.4%
------------------------------------------------------------------------
France 13.7
------------------------------------------------------------------------
Germany 13.7
------------------------------------------------------------------------
Switzerland 9.8
------------------------------------------------------------------------
Italy 6.7
</TABLE>
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
Shell Transport & Trading Co. 3.0%
------------------------------------------------------------------------
Roche Holding AG 2.3
------------------------------------------------------------------------
Glaxo Wellcome PLC 2.2
------------------------------------------------------------------------
British Telecommunications PLC 1.9
------------------------------------------------------------------------
BP Amoco PLC 1.9
------------------------------------------------------------------------
Fortis (B) 1.8
------------------------------------------------------------------------
Nokia Oyj 1.6
------------------------------------------------------------------------
Nestle SA 1.6
------------------------------------------------------------------------
UBS AG 1.6
------------------------------------------------------------------------
Novartis AG 1.5
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photo of Adrian van Tiggelen]
ADRIAN VAN TIGGELEN
Portfolio Management
Team Leader
"ANOTHER GOOD DECISION WAS THE PURCHASE OF THE U.K. BANK BARCLAYS, WHICH HAS
RISEN DRAMATICALLY THIS YEAR..."
SEE PAGE 27 FOR FINANCIAL DETAILS
QUESTION: How has the Fund performed since its inception?
ANSWER: The ING European Equity Fund underperformed its benchmark, the FT-Europe
index, but handily outperformed its Lipper average.
QUESTION: Can you provide some examples of winning holdings for the Fund?
ANSWER: One of our most successful investment decisions thus far was the
purchase of the French luxury goods manufacturer Louis Vuitton Moet Hennesy
(LVMH). Our large holding in this stock was based on expectations of a
recovery in Asia, and very strong champagne sales for the year 2000. Another
good decision was the purchase of the U.K. bank Barclays, which has risen
dramatically this year, as fears on loan quality and emerging markets risks
evaporated.
QUESTION: Sector rotation has been extremely important this year. How did the
Fund handle these rapidly shifting trends?
ANSWER: This year's worst performing sectors were mostly the favorites of last
year. Some examples include growth sectors, such as pharmaceutical and
telecommunications, and the defensive utility sector. Investors rotated out
of these areas in favor of cyclical stocks, which were underweight in many
portfolios. Since our portfolio has a slight bias to growth it suffered some
underperformance as a result of the rotation into cyclicals. We lost most on
our overweight in pharmaceutical and business services, and the underweight
in automobile, forestry and mining. In financials, where banks outperformed
and insurance lagged, the Fund had a neutral position.
QUESTION: What is your outlook for economic growth in the overseas markets?
ANSWER: In view of the strong sector rotation into cyclicals in April, it has
become increasingly clear that the markets are anticipating a global
economic recovery. With global equity markets up substantially during the
first four months, without any support from bond yields, markets are pricing
in a scenario of strong economic reacceleration and subsequent earnings
growth.
QUESTION: What is necessary for the bull market in stocks to continue?
ANSWER: For this to occur, growth should materialize further and spread to Japan
and Europe during the next 12 months. Also, this higher growth should not in
any way rekindle fears of inflation. In our view, such a scenario is
possible, but it requires a leap of faith to expect it to continue over a
long period of time. For now, European equity markets could sustain their
upward momentum as earnings growth expectations may be upgraded. However, a
valuation driven correction later this year can not be ruled out.
10 ING Funds Semi-Annual Report / April 30, 1999 [ING FUNDS LOGO]
<PAGE> 13
Data as of 4/30/99
ING INTERNATIONAL EQUITY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of stocks in
markets generally outside of the United States.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 95.6%
- - Short-Term Investments 4.4
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Without With sales MSCI Int'l
sales charge charge EAFE Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 12.00% 5.56% 9.46% 6.23%
----------------------------------------------------------------------------
B Shares 11.80 6.80 -- --
----------------------------------------------------------------------------
C Shares 11.70 10.70 -- --
----------------------------------------------------------------------------
X Shares 9.18 4.18 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 2/16/99.
TOP FIVE COUNTRIES(1)
<TABLE>
<S> <C>
United Kingdom 23.6%
----------------------------------------------------------------------------
Japan 17.2
----------------------------------------------------------------------------
France 12.3
----------------------------------------------------------------------------
Switzerland 8.7
----------------------------------------------------------------------------
Australia 7.1
</TABLE>
REGIONAL BREAKDOWN(1)
<TABLE>
<S> <C>
Europe 62.3%
----------------------------------------------------------------------------
Pacific Rim 30.6
----------------------------------------------------------------------------
North America 4.4
----------------------------------------------------------------------------
South America 1.9
----------------------------------------------------------------------------
Africa 0.8
</TABLE>
TOP FIVE HOLDINGS(1)
<TABLE>
<S> <C>
BP Amoco PLC 2.6%
----------------------------------------------------------------------------
British Telecommunications PLC 2.1
----------------------------------------------------------------------------
Lloyds TSB Group PLC 1.9
----------------------------------------------------------------------------
Mitsubishi Heavy Industries, Ltd. 1.8
----------------------------------------------------------------------------
Mitsubishi Corp. 1.8
----------------------------------------------------------------------------
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photo of James P. Williams and Hayes Miller]
James P. Williams
Hayes Miller
Portfolio Managers
"IRELAND, ITALY, SPAIN AND OTHER POST-EMU COUNTRIES COULD ALSO CONTINUE TO ENJOY
A LONG CYCLICAL UPSWING."
SEE PAGE 28 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed since its inception?
ANSWER: The Fund outperformed its benchmark, the MSCI EAFE Index, primarily due
to good market selection, as well as positive stock selection from most
markets. The Fund's small but concentrated exposure to emerging markets was
the largest contributor to outperformance. And our overweight positions in
the UK and Singapore also helped, as these markets are providing excellent
earnings growth characteristics at globally inexpensive prices.
QUESTION: What emerging market countries were the best performers for the Fund?
ANSWER: We selected our favorite companies in countries like Mexico, South Korea
and Israel. Not only were the markets up strongly, but our companies did
quite well within their markets.
QUESTION: Can you provide some specific success stories?
ANSWER: Japanese stock selection was very strong during the quarter, aided by
the portfolio's bias to value, export-related companies, and larger
industrials such as Mitsubishi Heavy Industries. As the yen drifted lower,
these stocks were the center of attention for foreign buyers, who have been
significantly underweight. The Fund's Italian stocks also performed well,
because of our focus on banks and finance companies, along with a handful of
mergers & acquisition candidates such as Telecom Italia.
QUESTION: Were there any strategies that detracted from performance?
ANSWER: The beginning of the year marked also the beginning of the Euro, which
we expected to be a strong currency against the dollar. The currency instead
fell by over 8% during the first quarter, largely as a result of Kosovo
related activities, very low interest rates and a disinflationary
environment.
We also avoided Hong Kong, on concerns of weaker growth in China, a weak
property market, and a more interventionist government. The market, however,
was up strongly, due to general enthusiasm for an Asian recovery.
QUESTION: What is your outlook for international equities?
ANSWER: We expect a reversal of the strength of the Japanese market and have
reduced the Fund's exposure to Japan. We believe the best places to invest
these assets are in Continental Europe, where we expect Germany to show some
positive surprise. Ireland, Italy, Spain and other post-EMU countries could
also continue to enjoy a long cyclical upswing. We also have put some of the
Japanese assets in emerging markets, where we anticipate continued recovery
and foreign interest. The emerging markets currently provide a great deal of
value relative to the heady valuations in most developed markets.
[ING FUNDS LOGO] ING Funds Semi-Annual Report / April 30, 1999 11
<PAGE> 14
Data as of 4/30/99
ING GLOBAL BRAND NAMES FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
OBJECTIVE
GROWTH OF CAPITAL through investment in a non-diversified portfolio of
multi-national companies with well-known brands.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- - Common Stocks 98.9%
- - Short-Term Investments 1.1
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
Without With sales MSCI Global
sales charge charge World Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 10.30% 3.96% 7.50% 7.94%
----------------------------------------------------------------------------
B Shares 10.00 5.00 -- --
----------------------------------------------------------------------------
C Shares 10.00 9.00 -- --
----------------------------------------------------------------------------
X Shares 2.32 -2.68 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/14/99.
TOP FIVE COUNTRIES(1)
<TABLE>
<S> <C>
United States 63.4%
----------------------------------------------------------------------------
Netherlands 8.0
----------------------------------------------------------------------------
France 7.4
----------------------------------------------------------------------------
Finland 6.2
----------------------------------------------------------------------------
Japan 5.5
</TABLE>
REGIONAL BREAKDOWN(1)
<TABLE>
<S> <C>
North America 64.0%
----------------------------------------------------------------------------
Europe 28.2
----------------------------------------------------------------------------
Pacific Rim 7.8
</TABLE>
TOP FIVE HOLDINGS(1)
<TABLE>
<S> <C>
Nokia Oyj 6.2%
----------------------------------------------------------------------------
Intel Corp. 6.0
----------------------------------------------------------------------------
Microsoft Corp. 5.4
----------------------------------------------------------------------------
Heineken NV 5.4
----------------------------------------------------------------------------
Time Warner Inc. 4.9
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[Photo of Herman Kleeven]
HERMAN KLEEVEN
Portfolio Management
Team Leader
"WE REMAIN OPTIMISTIC FOR INVESTMENTS IN GLOBAL STOCK MARKETS IN GENERAL, AND
GLOBAL BRAND NAME COMPANIES, IN PARTICULAR."
SEE PAGE 30 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed for its shareholders?
ANSWER: The Fund posted strong double-digit returns since its inception, and has
outperformed its benchmark, the MSCI World Index.
QUESTION: The success of brand name consumer goods is often tied to the strength
of global economies. How have worldwide economic conditions affected the
Fund?
ANSWER: It's no surprise that the U.S. economy has performed well. What has been
somewhat of a surprise is the strong rebound in many countries, following
last year's Asian currency crisis. This turnaround has been very positive
for the Fund.
QUESTION: Has the Fund benefited from the strong recovery in the Japanese
economy?
ANSWER: The much troubled Japanese market finally benefited from an improvement
in sentiment which was due to the restructuring activity announced by
companies such as Sony. Most global fund managers were very much underweight
Japan and rushed in to increase their exposure. This resulted in a sharp
increase in the Japanese stock market.
QUESTION: Can you share some examples of Fund success stories?
ANSWER: Luxury goods companies Louis Vuitton Moet Hennesy (LVMH) and Gucci
benefited from an improving outlook in Asia. Gucci's performance was
particularly noteworthy, as it handily surpassed consensus earnings
estimates. The Gucci share price also benefited from the takeover battle
that started when LVMH launched its bid for the company. Another example of
a winning Fund holding was Nokia. The company continues to grow its market
share with leading edge products for the mobile phone market.
QUESTION: Were there any disappointments in the Fund's portfolio?
ANSWER: We believed that Heinz was an interesting restructuring play. Despite
the fact that Heinz has a broad range of products, this was not enough to
offset increasing pressures from a consolidating industry. As a result, we
decided to sell our position. We also participated in the Pepsi Bottling
Groups (PBG) initial public offering. PBG is the world's largest
manufacturer, seller and distributor of Pepsi-Cola beverages. Unfortunately,
a number of factors resulted in a less than sizzling debut for the company.
QUESTION: What is your outlook for the Fund?
ANSWER: Growing evidence of economic strength and rising interest rates would
seem to favor cyclical stocks at the expense of high multiple stocks to
which our Fund is biased. However, we feel that this effect will be offset
from the recovering emerging markets. Over the long-term we remain
optimistic for investments in global stock markets in general, and global
brand name companies, in particular.
12 ING Funds Semi-Annual Report / April 30, 1999 [ING FUNDS LOGO]
<PAGE> 15
Data as of 4/30/99
ING HIGH YIELD BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME AND TOTAL RETURNS
OBJECTIVE
HIGH CURRENT INCOME AND TOTAL RETURN, through investment in a diversified
portfolio of below-investment grade corporate bonds.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
Corporate Bonds 96.5%
Repurchase Agreement 3.5
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
LB Lipper
Without With sales High Yield High Yield
sales charge charge Index(2) Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares 5.99% 0.94% 3.82% 5.06%
- --------------------------------------------------------------------------------
B Shares 5.69 0.69 -- --
- --------------------------------------------------------------------------------
C Shares 5.69 4.69 -- --
- --------------------------------------------------------------------------------
X Shares 5.11 0.11 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
CREDIT ALLOCATION(1)
<TABLE>
<S> <C>
BB/Ba 22.6%
- --------------------------------------------------------------------------------
B/B 73.9
- --------------------------------------------------------------------------------
Repurchase Agreement 3.5
</TABLE>
TOP FIVE HOLDINGS(1)
<TABLE>
<S> <C>
Ackerley Group Inc.,
9.00% due 1/15/2009 5.4%
- --------------------------------------------------------------------------------
Global Crossing Holding, Ltd.
10.5% due 6/1/2002 4.0
- --------------------------------------------------------------------------------
Orange PLC, 8.00% due 8/1/2008 3.9
- --------------------------------------------------------------------------------
Century Communications,
9.50% due 3/1/2005 3.7
- --------------------------------------------------------------------------------
McLeod USA Inc.,
8.13% due 2/15/2009 3.7
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTO OF BOB BOWMAN]
BOB BOWMAN
Portfolio Management
Team Leader
"THE MANAGEMENT TEAM WAS ABLE TO SUCCESSFULLY DIFFERENTIATE BETWEEN IMPROVING
AND DECLINING INDIVIDUAL SECURITIES."
QUESTION: The high yield market has generated strong results in recent years.
How has the ING Fund performed since its inception?
ANSWER: We are pleased to report that the Fund has generated very strong
results, outperforming the Lehman Brothers High Yield Index by a healthy
margin.
QUESTION: Overall, what were some of the reasons for this success?
ANSWER: The primary reasons were astute individual credit and sector selection.
We were able to successfully differentiate between improving and declining
individual securities. The Fund also overweighted sectors of the high yield
market that posted the strongest returns. Finally, performance was enhanced
by short-term trading gains that were realized using active management
techniques.
QUESTION: Can you give some specific examples of strong performers?
ANSWER: One of the strongest performing areas of the high yield market was the
media-cable sector. The Fund benefited by having a 16% weighting versus an
index weighting of 8%. The primary reason for the sector's outperformance
was merger activity that occurred between investment grade and
non-investment grade companies. We anticipated this activity and positioned
the portfolio to benefit from it.
The Fund also held several individual securities that produced
outstanding results. These included Hyperion Telecom, Telewest
Communications, Advanced Glassfiber Yarns and Rural/Metro Corporation.
QUESTION: Were there any investment strategies that didn't pan out for the Fund?
ANSWER: Two areas that were a drag on performance were the Fund's maturity and
overall quality composition. The Fund's portfolio was positioned to have a
slightly longer duration than the index, as we believed interest rates would
trend downward. But the opposite occurred, negatively impacting performance.
The Fund also focused on securities in the upper tiers of the high yield
market. This stance was rewarded during the first quarter. However, in April
lower credit quality high yield bonds outperformed high yield bonds with
relatively better credit ratings.
QUESTION: What is your forecast for the high yield market and the Fund?
ANSWER: Several factors point to a positive outlook going forward. The domestic
economy has been strong, which bodes well for the financial health of high
yield companies.
Demand for high yield bonds continues to be heavy, with support from
retail mutual funds, institutional investors and Collateralized Bond
Obligations (CBOs). These factors provide fundamental and technical support
to the high yield market.
SEE PAGE 30 FOR FINANCIAL DETAILS.
[ING FUNDS LOGO] ING Funds Semi-Annual Report / April 30, 1999 13
<PAGE> 16
Data as of 4/30/99
ING INTERMEDIATE BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME CONSISTENT WITH THE PRESERVATION OF
CAPITAL AND LIQUIDITY
OBJECTIVE
HIGH CURRENT INCOME consistent with the preservation of capital and liquidity
through investment in a diversified portfolio of U.S. government and
high-quality corporate bonds.
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
Corporate Bonds 75.3%
U.S. Treasury 8.9
U.S. Government 8.2
Repurchase Agreement 7.6
</TABLE>
CUMULATIVE TOTAL RETURN
Since inception (unless otherwise noted)
<TABLE>
<CAPTION>
Lipper
LB Int. Invest.
Without With sales Govt/Corp. Grade Debt
sales charge charge Index(2) Fund Avg(2)
<S> <C> <C> <C> <C>
A Shares -0.56% -5.29% -0.95% -0.21%
- --------------------------------------------------------------------------------
B Shares -0.96 -5.84 -- --
- --------------------------------------------------------------------------------
C Shares -0.84 -1.81 -- --
- --------------------------------------------------------------------------------
X Shares 0.12 -4.83 -- --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/11/99.
CREDIT ALLOCATION(1)
<TABLE>
<S> <C>
U.S. Treasury 8.9%
- --------------------------------------------------------------------------------
U.S. Government 8.2
- --------------------------------------------------------------------------------
AA/A 23.1
- --------------------------------------------------------------------------------
BBB/B 52.2
- --------------------------------------------------------------------------------
Repurchase Agreement 7.6
</TABLE>
TOP FIVE HOLDINGS(1)
<TABLE>
<S> <C>
Federal Home Loan Bank,
5.13% due 9/15/2003 6.1%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds,
5.25% due 11/15/2028 4.6
- --------------------------------------------------------------------------------
U.S. Treasury Bonds,
5.50% due 8/15/2028 3.5
- --------------------------------------------------------------------------------
McLeod USA Inc.,
9.50% due 11/1/2008 3.4
- --------------------------------------------------------------------------------
Jones Intercable Inc.,
9.63% due 3/15/2002 3.4
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
2. Year to date performance.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTO OF JAMES B. KAUFFMANN]
JAMES B. KAUFFMANN
Portfolio Management
Team Leader
"THE FUND WAS AIDED BY ITS OVERWEIGHTING IN THE INDUSTRIAL AND FINANCIAL SECTORS
OF THE HIGH-GRADE CORPORATE BOND UNIVERSE."
QUESTION: The U.S. bond market as a whole has not performed well in recent
months. How has the Fund done in this environment?
ANSWER: All things considered, the Fund has done reasonably well --
outperforming its benchmark, the Lehman Government Corporate Index, since
its inception.
QUESTION: Can you provide a review of this year's bond market?
ANSWER: The first quarter was one of extreme contrasts. The U.S. Treasury market
experienced one of its worst stretches in recent memory, as interest rates
rose over 40 basis points across the yield curve. At the same time,
investment grade spread sectors provided a strong cushion against this poor
performance.
QUESTION: How did investors react to the bond market's gyrations?
ANSWER: Investors, wary over the pains inflicted by the credit sectors during
the second half of 1998, were reluctant to reenter these markets. The
unexpected economic strength during the fourth quarter, and early
indications of robust growth during the first quarter, worked to prod
portfolio managers back into the spread sectors.
QUESTION: Which sectors of the bond market provided the best returns?
ANSWER: Lower quality asset classes were the stars, with emerging market, high
yield and lower quality investment grade securities leading the way.
QUESTION: Can you explain what strategies the Fund used to enhance returns?
ANSWER: The Fund was aided by its overweighting in the industrial and financial
sectors of the high-grade corporate bond universe. An exposure to lower
rated issues also proved fruitful, as they held up better than higher rated
securities when interest rates rose. Examples of winning securities included
Qwest Communications, Northwest Airlines enhanced equipment trust
certificates and Texas New Mexico power.
In addition, the Fund was able to take advantage of pricing
inefficiencies in the new issue market, making some profitable, short-term
buys and sells.
QUESTION: In addition to rising interest rates, what other factors negatively
affected performance?
ANSWER: The Fund's duration, which was slightly higher than its index, hurt
returns. And, in hindsight, we had insufficient exposure to the strong
performing emerging market sector.
QUESTION: What is your outlook for the bond market for the remainder of the
year?
ANSWER: We believe that most of the damage has already occurred in the Treasury
market, as we expect economic activity to slow during the second half of the
year. However, there is reason for continued caution, due to the trend of
rising prices of oil, grains and other commodities.
SEE PAGE 32 FOR FINANCIAL DETAILS.
14 ING Funds Semi-Annual Report / April 30, 1999 [ING FUNDS LOGO]
<PAGE> 17
Data as of 4/30/99
ING MONEY MARKET FUND
For investors seeking preservation of capital and liquidity
OBJECTIVE
Maintain a stable $1.00 net asset value while providing investors with a HIGH
LEVEL OF CURRENT INCOME.
ASSET ALLOCATION(1)
<TABLE>
<S> <C>
- - 1st Tier Commercial Paper 89.9%
- - U.S. Government Agency 5.3
- - Medium-Term Note 3.2
- - Floating Rate Note 1.6
</TABLE>
PERFORMANCE HIGHLIGHTS
<TABLE>
<CAPTION>
IBC Money
Fund Rep
1st Tier
7-Day Yield 30-Day Yield Average
<S> <C> <C> <C>
A Shares 4.26% 4.26% 4.20%
- --------------------------------------------------------------------------------
B Shares 3.51 3.50 --
- --------------------------------------------------------------------------------
C Shares 3.51 3.51 --
- --------------------------------------------------------------------------------
X Shares 3.51 3.51 --
</TABLE>
Inception date for Class A, B, and C shares of the Fund is 12/15/98.
Inception date for Class X shares of the Fund is 1/20/99.
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
The Walt Disney Co. due 11/9/99 3.4%
- --------------------------------------------------------------------------------
Fannie Mae 4.98% due 4/20/00 3.2
- --------------------------------------------------------------------------------
Goldman Sachs due 9/8/99 3.0
- --------------------------------------------------------------------------------
MDU Resources due 5/25/99 2.7
- --------------------------------------------------------------------------------
Smithkline Beecham due 5/4/99 2.7
- --------------------------------------------------------------------------------
Toyota Motor Credit due 6/1/99 2.7
- --------------------------------------------------------------------------------
Sara Lee due 5/3/99 2.6
- --------------------------------------------------------------------------------
Merrill Lynch & Co. due 6/11/99 2.5
- --------------------------------------------------------------------------------
Deere & Co. due 5/24/99 2.2
- --------------------------------------------------------------------------------
Daimler Chrysler due 8/25/99 2.2
</TABLE>
1. Fund holdings are subject to change and are dollar-weighted based on
invested assets.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
PLEASE SEE PAGE 16 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DETAILS AND RISK
CONSIDERATIONS.
MANAGER'S OVERVIEW
[PHOTO OF JENNIFER THOMPSON]
Jennifer Thompson
Portfolio Management
Team Leader
"The Fund was able to take advantage of these rates and outperform its
benchmark...."
QUESTION: How has the Fund performed since its inception?
ANSWER: The Fund met its objective of providing high current income. As of April
30, 1999 the Fund had a seven-day yield of 4.26% for its Class A shares,
3.51% for its Class B, C and X shares. These compare to the seven-day yield
of 4.20% from the Fund's benchmark, the IBC First Tier Index.
QUESTION: Can you describe the investment environment during the last six
months?
ANSWER: The second half of 1998 proved to be tumultuous for both the stock and
bond markets. The foreign economic crisis and general uncertainty in the
global markets caused the stock market to sell off dramatically in the third
quarter. The U.S. Treasury market rallied significantly during the period,
reflecting an investor flight to quality.
Despite the weakness in the global markets, the U.S. economy proved its
resiliency, posting a 4% GDP growth rate for the year. During the first
quarter of 1999 there were continued signs of economic strength, yet
inflation remained subdued.
QUESTION: How did economic conditions affect the U.S. monetary policy?
ANSWER: In response to the financial strain abroad and the resulting impact on
the domestic economy, the Federal Reserve Board began lowering interest
rates in late September. By December, after three 1/4 point easings, the
Federal Reserve had restored confidence to the markets. This far in 1999,
the Fed has adopted a neutral interest rate stance. However, sentiment has
changed from expectations of lowering rates, to an increase in interest
rates. As a result, prices of Treasury securities have fallen significantly.
QUESTION: What investment strategies have you employed for the Fund?
ANSWER: At the Fund's inception the money market yield curve was inverted, with
the highest interest rates in the one-month area due to technical year-end
factors. The Fund was able to take advantage of these rates and outperform
its benchmark during December and January. As the Fed's neutral position
became clear in early 1999 and the yield curve steepened, the Fund's average
maturity was extended to take advantage of higher interest rates at the long
end of the yield curve.
QUESTION: What is the Fund's strategy going forward?
ANSWER: Currently, we plan to keep the Fund's average maturity in line with the
index. This approach will be utilized until a clearer course for interest
rates emerges.
SEE PAGE 33 FOR FINANCIAL DETAILS
[ING FUNDS LOGO] ING Funds Semi-Annual Report / April 30, 1999 15
<PAGE> 18
April 30, 1999 (unaudited)
FOOTNOTES
For Fund Performance pages 2-15
Past performance cannot guarantee future results. Total Returns are cumulative
not annualized. Fund returns include change in share value and reinvestment of
distributions.
Shares of ING Funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency and
involve investment risks, including the possible loss of the principal amount
invested.
Because of ongoing market volatility, the Funds' performance may be subject to
substantial short-term changes.
Credit allocation includes securities rated by national rating organizations, or
if not rated, determined to be of comparable quality by the Fund's Sub-Adviser.
Total return without sales charge for Class A shares is at NAV. Total return
with sales charge for Class A shares include the current initial maximum sales
charge of 5.75% (Stock funds); 4.75% (Bond Funds), respectively. Class A shares
of Money Market Fund are not subject to an initial sales charge.
Total return with sales charge for Class B, Class C and Class X shares, assume
redemption of Fund shares at the end of each period indicated, with the maximum
contingent deferred sales charge of 5%, 1% and 5%, respectively.
Class X shares are offered to qualified investors (including, but not limited
to, IRAs, Roth IRAs, Education IRAs, SEP IRAs, Simple IRAs and 403(b)(7) Plans.
Investors purchasing Class X shares will receive bonus shares having a value
equal to 2% of the amount invested. Bonus shares are paid by the Fund's
Distributor. Shares purchased by the reinvestment of dividends or capital gains
distributions are not eligible for bonus shares. Total return Class X shares
does not include the 2% bonus shares paid by the distributor.
RISK CONSIDERATIONS
These and other risks are more fully described in the prospectus.
GLOBAL/INTERNATIONAL There are risks of investing in foreign securities. Foreign
securities markets may not be subject to the same degree of regulation as, and
may be more volatile and less liquid than, the major US markets. International
investing also involves currency risk and political uncertainties.
ING SMALL CAP GROWTH FUND There are risks associated with investing in small
capitalization issuers. Small capitalization issuers typically have limited
product lines and smaller market share, and are less liquid than stocks of large
companies.
ING FOCUS FUND The Fund concentrates its investments in up to only 40 holdings.
The Fund carries more risk than more diversified funds.
ING TAX-EFFICIENT EQUITY FUND The Fund may invest up to 10% of its total assets
in foreign securities, which may be subject to exchange rate risk, and political
uncertainties.
ING GLOBAL INFORMATION TECHNOLOGY FUND The Fund concentrates its investments in
information technology companies. The Fund carries more risk than funds invested
across many industries and may be subject to significant price fluctuations and
stock price declines.
ING HIGH YIELD FUND Investments in high yield bonds are high risk investments.
Certain high yield/high risk bonds carry particular market risks and may
experience greater volatility in market value than investment grade corporate
bonds.
MONEY MARKET Shares of Money Market Fund are not guaranteed by the Federal
Deposit Insurance Corp., or any other government agency. Although the Fund seeks
to preserve the value of $1.00 per share, it is possible to lose money by
investing in the Fund.
BENCHMARKS
RUSSELL 2500 GROWTH INDEX measures the performance of the Russell 2500 companies
with higher price-to-book ratios and higher forecasted growth values.
RUSSELL 1000 INDEX measures the performance of the 1000 largest companies in the
Russell 3000 Index which represents approximately 89% of the total market
capitalization of the Russell 3000 Index. The average market capitalization is
approximately $9.9 billion.
RUSSELL MID-CAP GROWTH INDEX measures the performance of the Russell Midcap
companies with higher price-to-book ratios and higher forecasted growth values.
The stocks are also members of the Russell 1000 Growth Index.
S&P 500 INDEX includes 500 widely held stocks in four broad sectors
(industrials, utilities, financial and transportation).
SALOMON BROTHERS NON-US WORLD GOVERNMENT BOND INDEX includes a wide range of
foreign government bonds with maturities over 1 year.
GOLDMAN SACHS TECHNOLOGY INDUSTRY COMPOSITE INDEX is a modified
capitalization-weighted index currently composed of 190 companies involved in
the technology industry. It includes reinvestment of dividends and capital
gains.
FT-EUROPE INDEX is average weighted by the market value of the performance of
securities listed on the Stock Exchange of Austria, Belgium, Denmark, Finland,
France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Switzerland
and UK.
MSCI EAFE INDEX is a stock index designated to measure the investment returns of
developed countries outside of North America. The Index is composed of
approximately 1000 stocks from 21 countries.
MSCI WORLD INDEX represents 22 countries with market value of about 1,500
stocks. It includes the U.S., Europe, Canada, Australia, New Zealand and the Far
East. The average company in the Index presently has a market capitalization of
about $3.5 billion. The index provides total return in US dollars with dividends
reinvested.
LEHMAN BROTHERS HIGH YIELD INDEX includes all fixed-income securities having a
maximum quality rating of Ba1 (including default issues), a minimum amount
outstanding of $100 million and at least 1 year to maturity.
LEHMAN BROTHERS GOVERNMENT/CORP. INDEX includes government and corporate bonds,
U.S. treasuries, agency securities, corporate and yankee bonds with reinvestment
of income.
IBC MONEY FUND REPORT 1ST TIER AVERAGE is a weekly report tracking the
performance, assets, average maturities and portfolio composition of over 1,300
taxable and tax-free money funds.
16 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 19
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING Small Cap Growth Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
- --------------------------------------------------------------------------------
<S> <C>
COMMON STOCK -- 97.4%
ADVERTISING -- 8.7%
19,100 Lamar Advertising Co.(1) $ 642,237
31,000 Snyder Communications, Inc.(1) 910,625
8,200 TMP Worldwide Inc.(1) 551,450
7,000 Young & Rubicam Inc.(1) 278,688
----------
2,383,000
APPLICATIONS SOFTWARE -- 1.0%
1,700 New Era of Networks, Inc. 63,856
5,700 Siebel Systems, Inc.(1) 219,094
----------
282,950
AUTO/TRUCK PARTS -- 2.0%
23,600 Tower Automotive, Inc.(1) 542,800
CIRCUITS -- 0.9%
5,300 Vitesse Semiconductor Corp.(1) 245,456
COMMERCIAL BANKS -- 1.9%
7,700 Zions Bancorp. 513,494
COMMERCIAL SERVICES -- 2.2%
18,100 Concord EFS, Inc.(1) 604,087
COMPUTER DATA SECURITY -- 1.5%
16,500 Entrust Technologies Inc.(1) 406,312
COMPUTER SERVICES -- 2.9%
3,100 FactSet Research Systems Inc. 144,537
20,500 SunGard Data Systems Inc.(1) 654,719
----------
799,256
COMPUTER SOFTWARE -- 0.8%
7,600 Mercury Interactive Corp.(1) 214,225
COMPUTERS -- 1.7%
5,100 Comverse Technology, Inc.(1) 327,038
1,800 VERITAS Software Corp.(1) 127,800
----------
454,838
CONSUMER PRODUCTS -- 2.2%
17,500 The Dial Corp. 595,000
DATA PROCESSING/MANAGEMENT -- 1.0%
4,900 Fiserv, Inc.(1) 286,956
DIRECT MARKETING -- 2.3%
25,400 Harte-Hanks, Inc. 641,350
DISTRIBUTION -- 2.1%
6,400 CDW Computer Centers, Inc.(1) 572,800
DIVERSIFIED MANUFACTURING OPERATIONS -- 3.7%
15,100 Danaher Corp. 1,003,206
ELECTRONIC COMPONENTS -- 2.8%
12,400 Gentex Corp.(1) 372,775
5,400 KLA-Tencor Corp.(1) 267,975
2,500 Novellus Systems, Inc.(1) 118,125
----------
758,875
ELECTRONIC MEASUREMENT INSTRUMENTS -- 1.6%
9,500 Teradyne, Inc.(1) 448,281
ENTERTAINMENT SOFTWARE -- 2.4%
13,000 Electronic Arts Inc.(1) 660,563
FINANCE -- 3.9%
900 Ameritrade Holding Corp. -- A Shares(1) 120,206
2,100 E*Trade Group, Inc.(1) 242,550
4,500 Knight/Trimark Group, Inc. -- A Shares(1) 689,344
----------
1,052,100
FINANCIAL GUARANTEE INSURANCE -- 2.2%
12,900 CMAC Investment Corp. 591,788
FOOD -- 2.5%
32,100 Flowers Industries, Inc. 682,125
INSTRUMENTS - SCIENTIFIC -- 2.4%
6,200 Waters Corp.(1) 651,775
LASERS-SYSTEM/COMPONENTS -- 0.6%
1,300 Uniphase Corp.(1) 157,787
LIFE/HEALTH INSURANCE -- 2.6%
18,200 Protective Life Corp. 713,212
MEDICAL -- 3.6%
7,000 Biogen, Inc.(1) 665,438
8,500 Millennium Pharmaceuticals, Inc.(1) 316,094
----------
981,532
MEDICAL INSTRUMENTS -- 1.5%
3,000 Biomet, Inc. 123,000
6,900 Xomed Surgical Products, Inc.(1) 287,212
----------
410,212
MEDICAL PRODUCTS -- 1.2%
9,150 Osteotech, Inc.(1) 330,544
METAL PROCESSORS & FABRICATORS -- 1.7%
42,300 Metals USA, Inc.(1) 452,081
MISCELLANEOUS MANUFACTURER -- 1.2%
6,700 Pentair, Inc. 314,900
NETWORKING PRODUCTS -- 3.5%
20,100 Computer Network Technology Corp.(1) 375,619
10,900 International Network Services(1) 414,200
3,300 Network Appliance, Inc.(1) 166,031
----------
955,850
OPTICAL SUPPLIES -- 2.4%
21,300 Ocular Sciences, Inc.(1) 649,650
PHARMACY SERVICES -- 0.3%
1,000 Express Scripts, Inc. -- A Shares(1) 73,625
PRINTERS & RELATED PRODUCTS -- 1.5%
8,900 Electronics for Imaging, Inc.(1) 421,081
PROPERTY/CASUALTY INSURANCE -- 1.1%
14,500 HCC Insurance Holdings, Inc. 306,312
PUBLISHING -- 1.6%
31,800 Hollinger International Inc. 447,188
RENTAL AUTO/EQUIPMENT -- 2.7%
24,600 United Rentals, Inc.(1) 733,388
RETAIL -- 11.5%
7,700 Abercrombie & Fitch Co. -- A Shares(1) 732,463
22,700 Bed Bath & Beyond Inc.(1) 810,106
6,900 The Children's Place Retail Stores, Inc.(1) 250,125
17,200 Family Dollar Stores, Inc. 414,950
6,000 Linens 'n Things, Inc.(1) 274,500
14,200 Ross Stores, Inc. 652,313
----------
3,134,457
RETIREMENT CARE -- 0.9%
6,200 Sunrise Assisted Living, Inc.(1) 248,000
SCHOOLS -- 3.1%
10,600 Apollo Group, Inc. -- A Shares(1) 262,350
18,200 DeVry, Inc.(1) 480,025
5,200 Education Management Corp.(1) 103,675
----------
846,050
TELECOMMUNICATION SERVICES -- 0.2%
1,200 Teligent, Inc.(1) 65,250
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 17
<PAGE> 20
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING Small Cap Growth Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
TELEPHONE -- 0.7%
2,600 NEXTLINK Communications, Inc. -- A Shares(1) $ 190,450
TRANSPORTATION -- 2.3%
7,000 CNF Transportation Inc. 305,812
17,850 Swift Transportation Co., Inc.(1) 327,994
-----------
633,806
TRANSPORTATION SERVICES -- 0.5%
2,300 Expeditors International of Washington, Inc. 139,438
TOTAL COMMON STOCK
(Cost -- $24,155,311) $26,596,050
REPURCHASE AGREEMENT -- 2.6%
$709,000 State Street Bank & Trust Co., 4.80% due
5/3/1999; Proceeds at maturity -- $709,284;
(Fully collateralized by U.S. Treasury Notes, 5.75%
due 10/31/2002; Market value -- $727,624)
(Cost -- $709,000) $ 709,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $24,864,311)(2) $27,305,050
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Focus Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
COMMON STOCK -- 90.1%
AEROSPACE/DEFENSE -- 2.1%
4,700 United Technologies Corp. $ 680,913
APPLICATIONS SOFTWARE -- 5.8%
18,900 Citrix Systems, Inc.(1) 803,250
27,900 Siebel Systems, Inc. 1,072,406
----------
1,875,656
BANKS -- 3.3%
26,300 The Bank of New York Co., Inc. 1,052,000
BEVERAGES -- 1.8%
15,500 PepsiCo, Inc. 572,531
BUILDING PRODUCTS -- 2.9%
15,000 Martin Marietta Materials, Inc. 927,188
BROADCASTING SERVICES -- 2.3%
11,600 AT&T Corp. -- Liberty Media Group A Shares(1) 740,950
CASINO HOTELS -- 3.0%
90,000 Park Place Entertainment Corp.(1) 973,125
CELLULAR TELECOMMUNICATIONS -- 2.7%
9,200 AirTouch Communications, Inc.(1) 859,050
COMMERCIAL SERVICES -- 1.9%
29,000 Data Transmission Network Corp.(1) 612,625
COMPUTER SOFTWARE -- 3.2%
78,300 Parametric Technology Corp.(1) 1,022,794
COMPUTERS -- 1.9%
5,700 EMC Corp.(1) 620,944
DATA PROCESSING -- 2.4%
17,800 First Data Corp. 755,387
DIVERSIFIED MANUFACTURING OPERATIONS -- 2.0%
6,100 General Electric Co. 643,550
FINANCE -- 5.0%
7,400 Capital One Financial Corp. 1,285,287
5,300 Freddie Mac 332,575
----------
1,617,862
FOOD -- 3.7%
22,000 Fred Meyer, Inc.(1) 1,190,750
GOLD MINING -- 2.6%
40,800 Barrick Gold Corp. 821,100
MEDICAL -- 3.8%
9,300 Eli Lilly & Co. 684,712
8,400 SmithKline Beecham PLC Sponsored ADR 551,775
----------
1,236,487
MEDICAL PRODUCTS -- 3.4%
12,800 Baxter International Inc. 806,400
8,100 Becton, Dickinson & Co. 301,219
----------
1,107,619
METALS -- 3.6%
18,500 Reynolds Metals Co. 1,153,938
MULTI-LINE INSURANCE -- 3.1%
8,379 American International Group, Inc. 984,009
MULTIMEDIA -- 2.5%
11,500 Time Warner Inc. 805,000
OIL & GAS -- 3.4%
20,000 ENSCO International Inc. 371,250
17,000 Halliburton Co. 724,625
----------
1,095,875
</TABLE>
18 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 21
ING Focus Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
PIPELINES -- 2.5%
16,800 The Williams Cos., Inc. $ 793,800
RETAILS -- 3.0%
28,900 The TJX Cos., Inc. 962,731
SAVINGS & LOANS -- 2.1%
16,700 Washington Mutual, Inc. 686,788
TELECOMMUNICATION EQUIPMENT -- 3.5%
31,100 General Instrument Corp.(1) 1,135,150
TELECOMMUNICATION SERVICES -- 5.1%
18,300 IXC Communications, Inc.(1) 725,137
12,000 NTL Inc.(1) 915,000
-----------
1,640,137
TELEPHONE -- 7.5%
13,730 AT&T Corp. 693,340
19,600 Bell Atlantic Corp. 1,129,450
5,500 Telecom Italia S.p.A. Sponsored ADR 584,031
-----------
2,406,821
TOTAL COMMON STOCK
(Cost -- $24,557,885) $28,974,780
REPURCHASE AGREEMENT -- 9.9%
$3,196,000 State Street Bank & Trust Co., 4.800% due
5/3/1999; Proceeds at maturity -- $3,197,278;
(Fully collateralized by U.S. Treasury Notes,
5.125% due 8/31/2000; Market value -- $3,262,300)
(Cost -- $3,196,000) $ 3,196,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $27,753,885)(2) $32,170,780
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
ING Mid Cap Growth Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
COMMON STOCK -- 91.0%
AEROSPACE/DEFENSE -- 1.8%
10,000 Gulfstream Aerospace Corp.(1) $ 487,500
AIRLINES -- 1.0%
12,000 COMAIR Holdings, Inc. 264,750
APPAREL MANUFACTURERS -- 1.0%
8,000 Jones Apparel Group, Inc.(1) 264,000
APPLICATIONS SOFTWARE -- 3.2%
10,000 Citrix Systems, Inc.(1) 425,000
8,600 National Instruments Corp.(1) 292,400
4,700 Policy Management Systems Corp.(1) 147,756
----------
865,156
AUTO/TRUCK PARTS -- 1.2%
14,000 Tower Automotive, Inc.(1) 322,000
BUILDING -- 3.3%
6,300 Centex Corp. 230,344
17,900 D.R. Horton, Inc. 345,694
7,200 Ecolab Inc. 301,950
----------
877,988
BUILDING PRODUCTS -- 2.1%
5,000 Martin Marietta Materials, Inc. 309,062
7,400 Lone Star Industries, Inc. 264,088
----------
573,150
CIRCUIT BOARDS -- 1.0%
4,000 Sanmina Corp.(1) 265,500
CIRCUITS -- 4.3%
10,600 Linear Technology Corp. 602,875
2,700 Micrel, Inc.(1) 158,962
8,500 Vitesse Semiconductor Corp.(1) 393,656
----------
1,155,493
COMMERCIAL BANKS -- 5.9%
6,100 AmSouth Bancorp 290,131
13,400 City National Corp. 517,575
10,000 National Commerce Bancorp 250,000
12,500 North Fork Bancorp., Inc. 281,250
5,300 Old Kent Financial Corp. 250,425
----------
1,589,381
COMMERCIAL SERVICES -- 5.8%
7,500 Concord EFS, Inc.(1) 250,313
12,900 NOVA Corp.(1) 335,400
12,000 Paychex, Inc. 612,750
9,000 Quintiles Transnational Corp.(1) 365,062
----------
1,563,525
COMPUTER SERVICES -- 1.4%
11,900 SunGard Data Systems Inc.(1) 380,056
COMPUTER SOFTWARE -- 1.2%
10,000 Transaction Systems Architects, Inc. -- A Shares(1) 324,375
COMPUTERS -- 1.7%
5,050 Comverse Technology, Inc.(1) 323,831
3,300 NCR Corp.(1) 135,300
----------
459,131
CONSULTING SERVICES -- 1.0%
10,000 The Metzler Group, Inc.(1) 278,750
CONSUMER PRODUCTS -- 0.7%
8,400 Blyth Industries, Inc.(1) 191,100
DATA PROCESSING/MANAGEMENT -- 4.1%
14,000 Acxiom Corp.(1) 353,500
13,000 American Management Systems, Inc.(1) 446,875
5,000 Fiserv, Inc.(1) 292,812
----------
1,093,187
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 19
<PAGE> 22
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING Mid Cap Growth Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
DENTAL SUPPLIES & EQUIPMENT -- 1.0%
10,000 Sybron International Corp.(1) $ 276,875
DIRECT MARKETING -- 0.9%
10,000 Harte-Hanks, Inc. 252,500
DIVERSIFIED MANUFACTURING OPERATIONS -- 3.2%
5,400 Carlisle Cos. Inc. 264,600
5,000 Danaher Corp. 332,188
6,100 Teleflex Inc. 265,731
-----------
862,519
ELECTRONIC COMPONENT -- 0.6%
2,400 Altera Corp.(1) 173,400
FINANCE -- 0.8%
1,200 Capital One Financial Corp. 208,425
FOOD -- 1.4%
12,000 Richfood Holdings, Inc. 150,000
5,500 U.S. Foodservice(1) 231,344
-----------
381,344
FUNERAL SERVICES & RELATED ITEMS -- 0.8%
11,500 Stewart Enterprises, Inc. -- A Shares 228,562
HEALTH CARE -- 1.0%
8,000 MedQuist Inc.(1) 274,000
HOME FURNISHINGS -- 0.5%
5,000 Furniture Brands International, Inc.(1) 125,313
HOSPITAL BEDS/EQUIPMENT -- 0.8%
4,600 Hillenbrand Industries, Inc. 215,913
IDENTIFICATION SYSTEM/DEVELOPMENT -- 1.2%
7,000 Symbol Technologies, Inc. 334,250
INSTRUMENTS-SCIENTIFIC -- 1.2%
3,200 Waters Corp.(1) 336,400
LASERS-SYSTEM/COMPONENTS -- 1.0%
2,200 Uniphase Corp.(1) 267,025
LIFE/HEALTH INSURANCE -- 2.0%
7,300 Protective Life Corp. 286,069
6,000 Reinsurance Group of America, Inc. 256,500
-----------
542,569
MACHINERY TOOLS & RELATED PRODUCTS -- 1.6%
14,000 Applied Power Inc. -- A Shares 441,875
MEDICAL -- 8.3%
16,000 AmeriSource Health Corp. -- A Shares(1) 443,000
4,000 Biogen, Inc.(1) 380,250
27,000 Health Management Associates, Inc. -- A Shares(1) 421,875
10,000 Medicis Pharmaceutical Corp. -- A Shares(1) 243,125
8,300 Universal Health Services, Inc. -- B Shares(1) 430,044
8,000 Watson Pharmaceuticals, Inc.(1) 324,000
-----------
2,242,294
MEDICAL PRODUCTS -- 2.0%
5,400 MiniMed Inc.(1) 337,500
12,000 STERIS Corp.(1) 213,000
-----------
550,500
MISCELLANEOUS MANUFACTURER -- 1.2%
6,900 Pentair, Inc. 324,300
MULTI-LINE INSURANCE -- 1.1%
13,400 Horace Mann Educators Corp. 304,850
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
NETWORKING PRODUCTS -- 0.5%
3,750 International Network Services(1) 142,500
POWER SUPPLY PRODUCTS -- 1.5%
12,000 American Power Conversion Corp.(1) 396,000
PRINTERS & RELATED PRODUCTS -- 3.2%
10,500 Electronics for Imaging, Inc.(1) 496,781
3,000 Lexmark International Group, Inc. -- A Shares(1) 370,500
-----------
867,281
RETAIL -- 5.1%
11,000 CSK Auto Corp.(1) 275,000
13,800 Family Dollar Stores, Inc. 332,925
11,400 Linens 'n Things, Inc.(1) 521,550
8,600 Williams-Sonoma, Inc.(1) 249,400
-----------
1,378,875
SCHOOLS -- 3.7%
12,500 Apollo Group, Inc. -- A Shares(1) 309,375
10,000 ITT Educational Services, Inc.(1) 245,625
17,500 Sylvan Learning Systems, Inc.(1) 439,687
-----------
994,687
TELECOMMUNICATIONS EQUIPMENT -- 4.9%
10,000 ADC Telecommunications, Inc.(1) 478,125
11,000 ANTEC Corp.(1) 298,375
8,400 General Instrument Corp.(1) 306,600
3,500 Plantronics, Inc.(1) 236,250
-----------
1,319,350
TRANSPORTATION -- 0.8%
3,700 Expeditors International of Washington, Inc. 224,313
TOTAL COMMON STOCK
(Cost -- $23,663,519) $24,620,962
UNIT INVESTMENT TRUST -- 4.7%
17,000 S & P Mid-Cap 400 Depository Receipts
(Cost -- $1,137,674) $ 1,265,969
SUB-TOTAL INVESTMENTS
(Cost -- $24,801,193) $25,886,931
REPURCHASE AGREEMENT -- 4.3%
$1,158,000 State Street Bank & Trust Co., 4.80% due
5/3/1999; Proceeds at maturity -- $1,158,463;
(Fully collateralized by U.S. Treasury Notes,
5.25% due 1/31/2001; Market value -- $1,183,931)
(Cost -- $1,158,000) $ 1,158,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $25,959,193)(2) $27,044,931
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
20 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 23
ING Large Cap Growth Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
COMMON STOCK -- 98.1%
ADVERTISING AGENCIES -- 1.4%
7,400 Omnicom Group Inc. $ 536,500
AUTOMOBILE -- 1.6%
9,200 Ford Motor Co. 588,225
BANKS -- 7.0%
19,800 The Bank of New York Co., Inc. 792,000
15,000 U.S. Bancorp 555,938
28,600 Wells Fargo Co. 1,235,163
-----------
2,583,101
BEVERAGES -- 1.6%
8,600 The Coca-Cola Co. 584,800
COMPUTER SOFTWARE -- 5.5%
16,300 Compuware Corp.(1) 397,312
20,300 Microsoft Corp.(1) 1,650,644
-----------
2,047,956
COMPUTERS -- 10.8%
20,200 Dell Computer Corp.(1) 831,987
7,600 EMC Corp.(1) 827,925
6,100 International Business Machines Corp. 1,276,044
14,300 Sun Microsystems, Inc.(1) 855,319
2,800 VERITAS Software Corp.(1) 198,800
-----------
3,990,075
CONSUMER PRODUCTS -- 0.7%
7,200 The Dial Corp. 244,800
CRUISE LINES -- 1.6%
14,400 Carnival Corp. 594,000
DIVERSIFIED FINANCIAL SERVICES -- 4.5%
14,000 Citigroup Inc. 1,053,500
6,100 Morgan Stanley Dean Witter & Co. 605,044
-----------
1,658,544
DIVERSIFIED MANUFACTURING OPERATIONS -- 7.7%
6,700 Danaher Corp. 445,131
13,000 General Electric Co. 1,371,500
12,800 Tyco International Ltd. 1,040,000
-----------
2,856,631
ELECTRONIC COMPONENTS -- 3.1%
18,800 Intel Corp. 1,150,325
FINANCE - DISCOUNT BROKERAGE -- 0.4%
1,200 The Charles Schwab Corp. 131,700
FOOD - RETAIL -- 1.7%
11,400 Safeway Inc.(1) 614,888
FOOD - WHOLESALE/DISTRIBUTOR -- 0.9%
11,400 SYSCO Corp. 338,438
INTERNET SOFTWARE -- 2.0%
5,100 America Online, Inc.(1) 728,025
MEDICAL - DRUGS -- 7.4%
3,800 Eli Lilly & Co. 279,775
7,700 Merck & Co., Inc. 540,925
7,400 Pfizer Inc. 851,463
11,200 Schering-Plough Corp. 541,100
7,900 Warner-Lambert Co. 536,706
-----------
2,749,969
MEDICAL - WHOLESALES DRUG DISTRIBUTOR -- 1.1%
6,600 Cardinal Health, Inc. 394,762
MEDICAL INSTRUMENTS -- 2.2%
5,000 Guidant Corp.(1) 268,438
7,800 Medtronic, Inc. 561,113
-----------
829,551
MEDICAL PRODUCTS -- 2.1%
8,100 Johnson & Johnson 789,750
MOTORCYCLE -- 1.1%
7,100 Harley-Davidson, Inc. 423,337
MULTI-LINE INSURANCE -- 4.6%
16,100 The Allstate Corp. 585,637
9,700 American International Group, Inc. 1,139,144
-----------
1,724,781
MULTIMEDIA -- 1.6%
8,200 Gannett Co., Inc. 580,662
NETWORKING PRODUCTS -- 2.5%
8,200 Cisco Systems, Inc.(1) 935,312
OFFICE AUTOMATION & EQUIPMENT -- 1.2%
7,500 Xerox Corp. 440,625
OIL COMPANY-INTEGRATED -- 2.2%
9,800 Exxon Corp. 814,012
RESTAURANTS -- 2.8%
16,800 McDonald's Corp. 711,900
4,800 Tricon Global Restaurants, Inc.(1) 309,000
-----------
1,020,900
RETAIL -- 11.9%
11,800 Bed Bath & Beyond, Inc.(1) 421,112
7,900 The Gap, Inc. 525,844
20,700 The Home Depot, Inc. 1,240,706
13,450 Staples, Inc.(1) 403,500
39,400 Wal-Mart Stores, Inc. 1,812,400
-----------
4,403,562
TELECOMMUNICATIONS EQUIPMENT -- 2.8%
17,200 Lucent Technologies Inc. 1,034,150
TELEPHONE - LONG DISTANCE -- 4.1%
18,500 MCI WorldCom, Inc.(1) 1,520,469
TOTAL COMMON STOCK
(Cost -- $32,473,441) $36,309,850
REPURCHASE AGREEMENT -- 1.9%
$707,000 State Street Bank & Trust Co., 4.800% due
5/3/1999; Proceeds at maturity -- $707,283;
(Fully collateralized by U.S. Treasury Notes,
6.625% due 3/1/2002; Market value -- $726,249)
(Cost -- $707,000) $ 707,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $33,180,441)(2) $37,016,850
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Funds Semi-Annual Report / April 30, 1999 21
<PAGE> 24
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING Tax Efficient Equity Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
COMMON STOCK -- 87.8%
AEROSPACE/DEFENSE -- 1.5%
12,800 The B.F. Goodrich Co. $ 508,800
3,600 Gulfstream Aerospace Corp.(1) 175,500
----------
684,300
AIRLINES -- 0.8%
5,300 AMR Corp.(1) 370,006
AUTOMOBILE -- 2.6%
9,200 Ford Motor Co. 588,225
6,700 General Motors Corp. 595,881
----------
1,184,106
BANKS -- 8.3%
11,000 Bank of America Corp. 792,000
16,200 Bank One Corp. 955,800
6,000 The Chase Manhattan Corp. 496,500
12,500 First Union Corp. 692,187
10,100 Fleet Financial Group, Inc. 434,931
14,000 KeyCorp 433,125
----------
3,804,543
BEVERAGES -- 0.4%
2,900 The Coca-Cola Co. 197,200
BUILDING PRODUCTS -- 1.3%
10,100 American Standard Cos. Inc.(1) 462,075
2,200 USG Corp. 128,425
----------
590,500
CHEMICALS -- 1.1%
6,400 Arch Chemicals, Inc. 140,800
5,300 E.I. du Pont de Nemours & Co. 374,312
----------
515,112
CIRCUITS -- 0.8%
10,000 Analog Devices, Inc.(1) 351,250
COMPUTER SOFTWARE -- 2.0%
5,700 Computer Associates International, Inc. 243,319
8,400 Microsoft Corp.(1) 683,025
----------
926,344
COMPUTERS -- 4.3%
5,100 Hewlett-Packard Co. 402,262
5,300 International Business Machines Corp. 1,108,694
7,100 Quantum Corp.(1) 126,913
6,000 Sun Microsystems, Inc.(1) 358,875
----------
1,996,744
CONTAINERS -- 0.9%
15,000 Owens-Illinois, Inc.(1) 435,000
COSMETICS & TOILETRIES -- 2.9%
3,600 Colgate-Palmolive Co. 368,775
7,000 Kimberly-Clark Corp. 429,188
5,900 The Procter & Gamble Co. 553,494
----------
1,351,457
CRUISE LINES -- 0.6%
8,000 Royal Caribbean Cruises Ltd. 295,500
DATA PROCESSING/MANAGEMENT -- 0.7%
7,200 First Data Corp. 305,550
DIVERSIFIED FINANCIAL SERVICES -- 1.4%
8,500 Citigroup Inc. 639,625
DIVERSIFIED MANUFACTURING OPERATIONS -- 5.0%
5,200 Eaton Corp. 476,775
13,200 General Electric Co. 1,392,600
5,500 Tyco International Ltd. 446,875
----------
2,316,250
ELECTRONIC COMPONENTS -- 4.4%
6,500 Applied Materials, Inc.(1) 348,562
10,700 Intel Corp. 654,706
10,600 Solectron Corp.(1) 514,100
4,900 Texas Instruments Inc. 500,413
----------
2,017,781
ELECTRONIC MEASURING INSTRUMENTS -- 0.3%
3,100 Teradyne, Inc.(1) 146,281
ELECTRONIC PARTS DISTRIBUTORS -- 2.1%
27,600 Arrow Electronics, Inc.(1) 501,975
11,100 Avnet, Inc. 471,056
----------
973,031
FINANCE -- 4.5%
6,100 Countrywide Credit Industries, Inc. 276,406
10,400 Fannie Mae 737,750
15,400 Household International, Inc. 774,813
3,300 Merrill Lynch & Co., Inc. 276,994
----------
2,065,963
FOOD -- 1.2%
10,700 Bestfoods 537,006
HOME DECORATION PRODUCTS -- 0.6%
6,000 Newell Rubbermaid Inc. 284,625
INSTRUMENTS-CONTROLS -- 1.3%
12,600 Parker-Hannifin Corp. 591,413
MACHINERY -- 3.3%
7,400 The Black & Decker Corp. 419,950
12,400 Kennametal Inc. 329,375
6,800 Sundstrand Corp. 487,900
5,900 W.W. Grainger, Inc. 296,106
----------
1,533,331
MEDICAL - DRUGS -- 6.3%
9,100 Abbott Laboratories 440,781
9,300 American Home Products Corp. 567,300
9,900 Bristol-Myers Squibb Co. 629,269
2,500 Eli Lilly & Co. 184,063
8,800 Merck & Co., Inc. 618,200
3,900 Pfizer Inc. 448,744
----------
2,888,357
MEDICAL INFORMATION SYSTEMS -- 0.3%
4,800 IMS Health Inc. 144,000
MEDICAL PRODUCTS -- 2.2%
8,800 Baxter International Inc. 554,400
4,700 Johnson & Johnson 458,250
----------
1,012,650
METAL - ALUMINUM -- 1.1%
8,000 Alcoa Inc. 498,000
MULTIMEDIA -- 1.3%
5,600 CBS Corp.(1) 255,150
4,600 Time Warner Inc. 322,000
----------
577,150
NETWORKING PRODUCTS -- 2.1%
7,400 Adaptec, Inc.(1) 178,062
2,200 Ascend Communications, Inc.(1) 212,575
5,000 Cisco Systems, Inc.(1) 570,313
----------
960,950
OIL -- 1.1%
6,000 Halliburton Co. 255,750
3,900 Schlumberger Ltd. 249,113
----------
504,863
</TABLE>
22 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 25
ING Tax Efficient Equity Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
OIL COMPANY - INTEGRATED -- 4.1%
4,500 Atlantic Richfield Co. $ 377,719
7,200 Mobil Corp. 754,200
6,500 Texaco Inc. 407,875
8,000 Unocal Corp. 332,500
-----------
1,872,294
PAPER & RELATED PRODUCTS -- 1.2%
5,200 Bowater Inc. 278,850
3,200 Union Camp Corp. 254,000
-----------
532,850
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.5%
7,000 American Power Conversion Corp. 231,000
RESTAURANTS -- 0.6%
6,400 McDonald's Corp. 271,200
RETAIL -- 5.9%
10,400 Consolidated Stores Corp. 357,500
8,800 The Home Depot, Inc. 527,450
4,700 Nordstrom, Inc. 165,381
16,200 Rite Aid Corp. 377,663
17,000 Saks Inc. 481,313
2,000 Tandy Corp. 144,875
14,000 Wal-Mart Stores, Inc. 644,000
-----------
2,698,182
TELECOMMUNICATION EQUIPMENT -- 1.3%
8,000 Lucent Technologies Inc. 481,000
4,300 Telefonaltiebolaget LM Ericsson -- Sponsored ADR 116,100
-----------
597,100
TELEPHONE -- 4.9%
7,050 AT&T Corp. 356,025
8,600 Bell Atlantic Corp. 495,575
7,700 GTE Corp. 515,419
5,100 MCI WorldCom, Inc. 419,156
8,600 SBC Communications Inc. 481,600
-----------
2,267,775
TOBACCO -- 0.4%
4,900 Philip Morris Cos. Inc. 171,806
TOYS -- 0.3%
5,200 Mattel, Inc. 134,550
TRANSPORTATIONS -- 1.9%
11,500 Burlington Northern Santa Fe Corp. 421,187
11,000 CNF Transportation Inc. 480,562
-----------
901,749
TOTAL COMMON STOCK
(Cost -- $35,044,720) $40,377,394
REPURCHASE AGREEMENT -- 12.2%
$5,636,000 State Street Bank & Trust Co., 4.80% due
5/3/1999; Proceeds at maturity -- $5,638,254;
(Fully collateralized by U.S. Treasury Notes,
6.25% due 4/30/2001; Market value- $5,751,563)
(Cost -- $5,636,000) $ 5,636,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $40,680,720)(2) $46,013,394
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
ING Growth and Income Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
COMMON STOCK -- 92.0%
AEROSPACE/DEFENSE -- 0.6%
5,000 The Boeing Co. $ 203,125
AIRLINES -- 0.5%
2,200 AMR Corp.(1) 153,588
APPAREL MANUFACTURERS -- 0.7%
4,500 V. F. Corp. 231,750
AUTOMOBILE -- 1.3%
6,600 Ford Motor Co. 421,988
BANKS -- 5.5%
5,300 The Chase Manhattan Corp. 438,575
6,100 First Union Corp. 337,788
9,700 PNC Bank Corp. 561,388
10,000 Wells Fargo Co. 431,875
----------
1,769,626
BEVERAGES -- 1.4%
12,200 PepsiCo, Inc. 450,637
BREWERY -- 0.9%
3,900 Anheuser-Busch Cos., Inc. 285,187
BUILDING -- 1.2%
9,500 Jacobs Engineering Group Inc.(1) 374,656
BUILDING PRODUCTS -- 1.0%
5,000 Southdown, Inc. 320,312
CHEMICALS -- 1.1%
2,800 The Dow Chemical Co. 367,325
COMPUTER SERVICES -- 0.2%
3,200 Complete Business Solutions, Inc.(1) 71,600
COMPUTER SOFTWARE -- 4.6%
16,700 Cadence Design Systems, Inc.(1) 226,494
15,200 Microsoft Corp.(1) 1,235,950
----------
1,462,444
COMPUTERS -- 5.2%
12,100 Compaq Computer Corp. 269,981
2,900 International Business Machines Corp. 606,644
13,400 Sun Microsystems, Inc.(1) 801,487
----------
1,678,112
CONSUMER PRODUCTS -- 0.5%
6,200 American Greetings Corp. -- A Shares 162,362
COSMETICS & TOILETRIES -- 2.4%
5,000 The Gillette Co. 260,937
5,400 The Procter & Gamble Co. 506,587
----------
767,524
CRUISE LINES -- 0.4%
2,800 Carnival Corp. 115,500
DIVERSIFIED FINANCIAL SERVICES -- 3.9%
13,800 Citigroup Inc. 1,038,450
2,000 Morgan Stanley Dean Witter & Co. 198,375
----------
1,236,825
DIVERSIFIED MANUFACTURING OPERATIONS -- 5.4%
9,000 General Electric Co. 949,500
6,500 PPG Industries, Inc. 422,094
4,400 Tyco International Ltd. 357,500
----------
1,729,094
ELECTRIC - 0.9%
11,700 Edison International 286,650
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 23
<PAGE> 26
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING Growth and Income Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
ELECTRONIC COMPONENTS -- 5.6%
6,700 Applied Materials, Inc.(1) $ 359,288
10,000 Intel Corp. 611,875
5,000 Motorola, Inc. 400,625
10,400 Public Service Enterprise Group Inc. 416,000
-----------
1,787,788
ENGINES -- 0.8%
5,000 Cummins Engine Co., Inc. 267,500
FINANCE -- 1.1%
5,000 Fannie Mae 354,688
FOOD -- 2.8%
5,800 The Kroger Co.(1) 315,013
8,900 Ralston-Ralston Purina Group 271,450
14,600 Sara Lee Corp. 324,850
-----------
911,313
LIFE/HEALTH INSURANCE -- 1.0%
9,000 Torchmark Corp. 307,687
MACHINE TOOLS -- 1.2%
16,200 Milacron Inc. 372,600
MEDICAL -- 9.6%
13,800 American Home Products Corp. 841,800
2,700 AmeriSource Health Corp. -- A Shares(1) 74,756
11,500 Bristol-Myers Squibb Co. 730,969
9,500 Humana Inc.(1) 129,438
10,500 Merck & Co., Inc. 737,625
7,000 Schering-Plough Corp. 338,187
9,000 Tenet Healthcare Corp.(1) 212,625
-----------
3,065,400
MEDICAL PRODUCTS -- 0.9%
4,500 Baxter International Inc. 283,500
MULTI-LINE INSURANCE -- 4.0.%
14,300 The Allstate Corp. 520,163
5,400 American International Group, Inc. 634,162
4,000 Travelers Property Casualty Corp. -- A Shares 138,000
-----------
1,292,325
MULTIMEDIA -- 1.8%
2,900 Gannett Co., Inc. 205,356
5,500 Time Warner Inc. 385,000
-----------
590,356
NETWORKING PRODUCTS -- 3.4%
5,000 Ascend Communications, Inc.(1) 483,125
5,400 Cisco Systems, Inc.(1) 615,938
-----------
1,099,063
NON-HAZARDOUS WASTE DISPOSAL -- 1.0%
18,000 Allied Waste Industries, Inc.(1) 318,375
OIL -- 0.9%
7,000 Halliburton Co. 298,375
OIL COMPANY -- 3.9%
5,600 Chevron Corp. 558,600
7,400 Conoco Inc. -- A Shares 200,725
4,800 Mobil Corp. 502,800
-----------
1,262,125
PRINTERS & RELATED PRODUCTS -- 0.5%
1,400 Lexmark International Group, Inc. -- A Shares(1) 172,900
RETAIL -- 5.7%
3,000 Circuit City Stores-Circuit City Group 184,500
6,300 The Home Depot, Inc. 377,606
6,400 Intimate Brands, Inc. 320,000
6,000 The May Department Stores Co. 238,875
15,400 Wal-Mart Stores, Inc. 708,400
-----------
1,829,381
TELEPHONE -- 7.6%
12,000 Ameritech Corp. 821,250
5,250 AT&T Corp. 265,125
17,000 BellSouth Corp. 760,750
10,400 SBC Communications Inc. 582,400
-----------
2,429,525
TOBACCO -- 1.5%
13,500 Philip Morris Cos. Inc. 473,344
TOYS -- 0.5%
6,000 Mattel, Inc. 155,250
TRANSPORTATION -- 0.5%
4,400 Burlington Northern Santa Fe Corp. 161,150
TOTAL COMMON STOCK
(Cost -- $27,082,346) $29,520,950
UNIT INVESTMENT TRUST -- 4.2%
10,000 Standard & Poor's Depository Receipts
(Cost -- $1,184,057) $ 1,334,375
SUB-TOTAL INVESTMENTS
(Cost -- $28,266,403) $30,855,325
REPURCHASE AGREEMENT -- 3.8%
$1,222,000 State Street Bank & Trust Co., 4.800% due
5/3/1999; Proceeds at maturity -- $1,222,489;
(Fully collateralized by U.S. Treasury Notes,
11.125% due 8/15/2003; Market value --
$1,249,969) (Cost -- $1,222,000) $ 1,222,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $29,488,403)(2) $32,077,325
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
24 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 27
ING INTERNATIONAL BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Ratings(1) Value
<S> <C> <C>
FOREIGN BONDS -- 83.3%
AUSTRALIA -- 8.3%
1,540,000 Australian Government, Series 1106,
6.750% due 11/15/2006(2) AAA/NR $ 1,044,688
1,500,000 Queensland Treasury Corp.,
6.500% due 6/14/2005(2) NR/Aaa 1,103,253
-----------
2,147,941
AUSTRIA -- 4.2%
980,000 Austria Republic, Series 98 2,
4.300% due 7/15/2003(3) AAA/Aaa 1,081,054
CANADA -- 3.9%
1,440,000 Canadian Government,
5.250% due 9/1/2003(4) AAA/Aa1 997,531
DENMARK -- 4.4%
7,270,000 Kingdom of Denmark,
6.000% due 11/15/2002(5) AAA/Aaa 1,123,841
FINLAND -- 3.9%
930,000 Finnish Government,
4.000% due 6/21/2000(3) AA/Aaa 997,399
FRANCE -- 9.6%
French Treasury Notes:
593,000 5.500% due 10/12/2001(3) NR/Aaa 665,853
798,000 4.500% due 7/12/2003(3) NR/Aaa 920,176
794,000 Government of France,
5.500% due 4/25/2029(3) AAA/Aaa 888,407
-----------
2,474,436
GERMANY -- 11.1%
705,000 Bundesobligation, Series 121,
4.750% due 11/20/2001(3) AAA/Aaa 780,511
894,000 Bundesobligation, Series 123,
4.500% due 5/17/2002(3) AAA/Aaa 986,675
894,000 Bundesrepublic Deutschland,
Series 97, 6.000% due 7/4/2007(3) AAA/Aaa 1,085,980
-----------
2,853,166
ITALY -- 4.2%
993,997 Buoni Poliennali del Tes,
4.500% due 5/1/2009(3) NR/NR 1,085,922
JAPAN -- 15.1%
300,000,000 Japan Treasury Bill, Series 220,
due 7/21/1999(6) NR/NR 2,512,311
250,000 Japan Development Bank,
9.125% due 1/31/2005(7) AAA/Aa1 466,247
280,000 Japan Finance Corp. Municipal
Enterprise, 6.375% due 3/9/2004(7) AAA/Aa1 465,730
260,000 Kansai International Airport Co.,
7.375% due 9/24/2007(7) NR/NR 465,709
-----------
3,909,997
NETHERLANDS -- 4.1%
916,000 Netherlands Government,
5.250% due 7/15/2008(3) AAA/Aaa 1,069,808
SPAIN -- 6.6%
Bonos Y Oblig del Estado:
1,020,000 4.500% due 7/30/2004(3) NR/Aa2 1,127,214
481,000 6.000% due 1/31/2008(3) NR/Aa2 580,847
-----------
1,708,061
SWEDEN -- 3.4%
7,000,000 Swedish Government, Series 1039,
5.500% due 4/12/2002(8) AAA/Aa1 883,403
UNITED KINGDOM -- 4.5%
690,000 United Kingdom Treasury,
7.000% due 11/6/2001(7) AAA/Aaa 1,160,596
TOTAL FOREIGN BONDS
(Cost -- $22,502,816) $21,493,155
U.S. GOVERNMENT AGENCIES & OBLIGATIONS -- 7.5%
580,000 Fannie Mae, Series EMTN,
6.875% due 6/7/2002(7) NR/Aaa $ 968,907
US Treasury Notes:
500,000 4.250% due 11/15/2003(9) NR/NR 480,000
490,000 4.750% due 2/15/2004(9) NR/NR 480,200
TOTAL U.S. GOVERNMENT AGENCIES & OBLIGATIONS
(Cost -- $1,954,243) $ 1,929,107
SUPRA-NATIONAL ENTITY -- 3.8%
Inter-American Development Bank:
480,000 6.375% due 10/22/2007(9) AAA/Aaa $ 496,248
500,000 5.750% due 2/26/2008(9) AAA/Aaa 494,720
TOTAL SUPRA-NATIONAL ENTITY
(Cost -- $994,560) $ 990,968
SUB-TOTAL INVESTMENTS
(Cost -- $25,451,619) $24,413,230
REPURCHASE AGREEMENT -- 5.4%
$1,405,000 State Street Bank & Trust Co., 4.800% due
5/3/1999; Proceeds at maturity -- $1,405,562;
(Fully collateralized by U.S. Treasury Notes,
5.750% due 10/31/2002; Market value --
$1,434,895) (Cost -- $1,405,000) $ 1,405,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $26,856,619)(10) $25,818,230
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Security is denominated in Australian Dollar.
3. Security is denominated in EURO.
4. Security is denominated in Canadian Dollar.
5. Security is denominated in Danish Kroner.
6. Security is denominated in Japanese Yen.
7. Security is denominated in British Pound.
8. Security is denominated in Swedish Kronor.
9. Security is denominated in United States Dollar.
10. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Funds Semi-Annual Report / April 30, 1999 25
<PAGE> 28
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING GLOBAL INFORMATION TECHNOLOGY FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
COMMON STOCK - 94.1%
CANADA -- 1.3%
6,901 Nortel Network Corp. $ 470,562
FINLAND -- 0.9%
7,543 Tieto Corp. -- B Shares 300,466
FRANCE -- 2.9%
372 Atos SA(1) 31,837
2,230 Cap Gemini SA 340,945
6,849 Equant NV(1) 621,628
-----------
994,410
GERMANY -- 0.8%
720 SAP AG 270,067
IRELAND -- 1.3%
29,025 CBT Group PLC ADR(1) 449,888
JAPAN -- 5.4%
11,840 Fuji Soft ABC Inc. 719,920
101 NTT Data Corp. 799,372
11,550 Sumisho Computer Systems Corp. 382,098
-----------
1,901,390
NETHERLANDS -- 3.8%
9,206 Getronics NV 377,896
13,910 Ordina Beheer NV(1) 333,629
12,052 United Pan-Europe Communications NV(1) 623,336
-----------
1,334,861
SWEDEN -- 1.2%
16,241 Telefonaktiebolaget LM Ericsson -- B Shares 426,382
UNITED KINGDOM -- 4.8%
21,507 CMG PLC 591,968
45,320 Logica PLC 437,438
8,882 The Sage Group PLC 300,058
34,760 SEMA Group PLC 336,070
-----------
1,665,534
UNITED STATES -- 71.7%
9,153 Amdocs Ltd.(1) 245,987
12,482 America Online, Inc. 1,781,806
14,576 Applied Materials, Inc.(1) 781,638
3,047 AXENT Technologies, Inc.(1) 28,566
25,472 BEA Systems, Inc.(1) 385,264
18,180 BMC Software, Inc.(1) 782,876
17,196 Cadence Design Systems, Inc.(1) 233,221
25,838 Cambridge Technology Partners, Inc.(1) 373,036
10,696 Cisco Systems, Inc.(1) 1,220,012
18,628 Citrix Systems, Inc.(1) 791,690
11,514 Compaq Computer Corp. 256,906
4,906 Computer Sciences Corp.(1) 292,214
25,825 Compuware Corp.(1) 629,484
18,990 Convergys Corp.(1) 353,689
12,567 Dell Computer Corp.(1) 517,603
7,773 EMC Corp.(1) 846,771
21,114 I2 Technologies, Inc.(1) 715,237
14,893 Intel Corp. 911,265
5,158 International Business Machines Corp. 1,078,989
5,525 Intuit Inc.(1) 475,841
5,993 KLA-Tencor Corp.(1) 297,403
180 LHS Group Inc. 6,362
5,178 The Learning Co., Inc.(1) 160,518
10,747 Lucent Technologies Inc. 646,163
7,083 MCI WorldCom, Inc.(1) 582,134
19,777 Microsoft Corp.(1) 1,608,117
22,479 Network Associates, Inc.(1) 297,847
34,274 Oracle Corp.(1) 927,540
15,048 RF Micro Devices, Inc.(1) 840,807
8,553 Rambus Inc.(1) 514,249
7,773 SCM Microsystems, Inc.(1) 512,046
10,606 Sapient Corp.(1) 665,526
11,387 Siebel Systems, Inc.(1) 437,688
19,354 Sun Microsystems, Inc.(1) 1,157,611
9,879 Teradyne, Inc.(1) 466,165
9,901 Transaction Systems Architects, Inc. -- A Shares(1) 321,164
12,480 Unisys Corp.(1) 392,340
13,971 The Vantive Corp.(1) 111,768
12,268 VERITAS Software Corp.(1) 871,028
24,976 Whittman-Hart, Inc.(1) 705,572
4,772 Yahoo! Inc.(1) 833,609
-----------
25,057,752
TOTAL COMMON STOCK
(Cost -- $29,677,312) $32,871,312
REPURCHASE AGREEMENT -- 5.9%
$2,052,000 State Street Bank & Trust Co., 4.80% due
5/3/1999; Proceeds at maturity -- $2,052,821;
(Fully collateralized by U.S. Treasury Notes,
6.25% due 4/30/2001; Market value -- $2,096,125)
(Cost -- $2,052,000) $ 2,052,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $31,729,312)(2) $34,923,312
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
26 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 29
ING European Equity Fund
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
- -------------------------------------------------------------
FOREIGN STOCKS -- 99.6%
- -------------------------------------------------------------
AUSTRIA -- 0.6%
2,910 Bank Austria AG $ 180,516
BELGIUM -- 2.4%
772 Cimenteries CBR Cementbedrijven 71,781
355 Electrabel SA 117,067
14,833 Fortis (B) 497,603
-----------
686,451
DENMARK -- 0.3%
749 Den Danske Bank Group 86,236
FINLAND -- 2.3%
24,391 Merita PLC 145,609
5,922 Nokia Oyj 456,462
4,479 Valmet Oyj 54,897
-----------
656,968
FRANCE -- 13.7%
475 Accor SA 125,220
1,259 Alcatel SA 154,576
4,196 Alstom SA(1) 137,438
2,078 Axa SA 268,304
2,287 Banque Nationale de Paris 189,570
987 Cap Gemini SA 150,902
325 Carrefour SA 257,546
1,027 Compagnie Financiere de Paribas 109,164
1,397 Credit Commercial de France 147,607
828 Eiffage SA 60,103
1,491 Elf Aquitaine SA 231,582
1,870 Lafarge SA 181,778
145 L'OREAL 92,843
1,038 Louis Vuitton Moet Hennessy 278,355
226 Promodes Group 143,275
3,923 Rhone-Poulenc SA 186,527
739 Sano? SA 115,797
2,037 Schneider SA 132,904
990 Societe Generale-- A Shares 177,198
723 Synthelabo SA 147,819
2,344 Total SA-- B Shares 320,977
1,349 Vivendi SA 315,146
-----------
3,924,631
GERMANY -- 13.7%
1,158 Allianz AG-- Registered Shares 368,898
6,205 Bayer AG 263,559
3,161 DaimlerChrysler AG 312,115
5,606 Deutsche Bank AG 325,782
4,078 Deutsche Telekom AG 160,719
3,328 Dresdner Bank AG 143,468
910 Fresenius AG-- Preferred 158,649
3,357 Hoechst AG 159,083
2,220 HypoVereinsbank 144,727
1,582 Mannesmann AG 208,274
3,775 Metro AG 272,825
484 Muenchener
Rueckversicherungs-Gesellschaft AG 96,142
484 Muenchener
Rueckversicherungs-Gesellschaft AG --
New Registered Shares(1) 97,165
4,868 RWE AG 222,715
519 SAP AG 166,158
983 Schering AG 113,471
2,146 Siemens AG 158,722
8,400 Software AG(1) 248,512
6,510 Thyssen Krupp AG(1) 135,506
3,213 Veba AG 176,193
-----------
3,932,683
GREECE -- 1.0%
1,638 Alpha Credit Bank $ 116,924
3,440 Hellenic Telecommunications
Organization SA 79,805
1,220 Titan Cement Co. SA 94,212
-----------
290,941
IRELAND -- 1.2%
6,067 Bank of Ireland 121,317
7,993 CRH PLC 156,959
5,350 Irish & Life Permanent PLC 76,176
-----------
354,452
ITALY -- 6.7%
6,350 Assicurazioni Generali 247,242
11,500 Banca Commerciale Italiana 94,656
52,148 Banca Nazionale del Lavoro(1) 177,972
32,627 ENI S.p.A. 214,771
10,319 Istituto Bancario San
Paolo di Torino S.p.A. 154,823
13,667 La Rinascente S.p.A. RNC 59,495
19,306 Riunione Adriatica di Sicurta
S.p.A. RNC 176,449
3,967 Rolo Banca 1473 S.p.A. 100,178
34,676 Telecom Italia S.p.A. 368,951
15,464 Telecom Italia S.p.A. RNC 83,167
38,871 Telecom Italia Mobile S.p.A. 231,641
-----------
1,909,345
NETHERLANDS -- 6.1%
11,615 ABN AMRO Holding NV 276,743
2,941 AEGON NV 282,002
1,906 Akzo Nobel NV 86,093
2,675 Equant NV(1) 242,788
5,070 Heineken Holding NV 188,833
3,875 Koninklijke Ahold NV 143,916
1,822 Koninklijke KPN NV 76,042
2,800 Koninklijke Nedlloyd NV 72,187
2,313 Koninklijke Numico NV 87,003
1,226 Koninklijke (Royal) Philips
Electronics NV 105,574
2,765 TNT Post Group NV 74,498
2,516 Wolters Kluwer NV 109,526
-----------
1,745,205
Portugal -- 0.7%
4,511 BPI-SGPS, SA-- Registered Shares 121,541
4,877 EDP-Electricidade de Portugal, SA 91,724
-----------
213,265
SPAIN -- 2.9%
3,518 Argentaria Caja Postal y Banco
Hipotecario de Espana, SA 82,743
9,633 Banco Santander Central Hispano, SA 209,264
9,296 Endesa SA 206,658
7,261 Telefonica SA(1) 340,252
7,261 Telefonica SA Bonus Rights(1) 6,751
-----------
845,668
SWEDEN -- 2.8%
16,113 ABB AB-- A Shares 224,402
3,370 ForeningsSparbanken AB 73,895
10,374 Skandia Forsakrings AB 200,422
11,260 Telefonaktiebolaget LM
Ericsson -- B Shares 295,613
-----------
794,332
SWITZERLAND -- 9.8%
236 Adecco SA 118,944
134 Baloise Holding Ltd. 109,603
145 Compagnie Financiere Richemont
AG -- A Unit 246,513
1,359 Credit Suisse Group 269,431
26 Kuoni Reisen AG -- Registered Shares 92,017
248 Nestle SA-- Registered Shares 458,844
295 Novartis AG-- Registered Shares 431,731
55 Roche Holding AG 646,677
1,299 UBS AG-- Registered Shares 441,003
-----------
2,814,763
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 27
<PAGE> 30
April 30, 1999 (unaudited)
SCHEDULE OF INVESTMENTS
ING European Equity Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
- -------------------------------------------------------------
UNITED KINGDOM -- 35.4%
12,900 Alliance & Leicester PLC $ 192,996
25,736 Allied Zurich PLC 351,499
5,992 AstraZeneca Group PLC 234,525
8,195 BAA PLC 85,691
7,405 Bank of Scotland 110,786
10,481 Barclays PLC 332,832
14,454 Bass PLC 227,174
16,816 BBA Group PLC 134,448
33,462 BG PLC 187,733
9,423 BOC Group PLC 149,466
28,117 BP Amoco PLC 533,283
27,910 British Aerospace PLC 208,779
9,821 British American Tobacco PLC 82,392
31,830 British Telecommunications PLC 534,579
9,258 CGU PLC 146,178
7,978 Cadbury Schweppes PLC 106,460
10,256 Compass Group PLC 105,098
16,379 Diageo PLC 189,053
7,973 GKN PLC 136,150
23,458 General Electric Co. PLC 248,497
20,968 Glaxo Wellcome PLC 619,980
21,706 The Great Universal Stores PLC 249,143
16,119 Hays PLC 179,181
34,192 Invensys PLC 174,502
18,342 J Sainsbury PLC 116,552
12,000 Kingfisher PLC 179,531
18,783 Ladbroke Group PLC 91,480
25,978 Lloyds TSB Group PLC 418,117
27,963 Marks & Spencer PLC 190,957
13,905 National Power PLC 112,069
8,639 National Westminster Bank PLC 208,046
12,128 Pearson PLC 257,926
12,740 Prudential Corp. PLC 181,687
4,845 Railtrack Group PLC 101,090
24,827 Reed International PLC 225,856
12,612 Rentokil Initial PLC 74,207
16,526 Scottish Power PLC 136,383
10,391 SEMA Group PLC 100,463
115,037 Shell Transport & Trading Co. PLC 861,454
23,955 SmithKline Beecham PLC 316,769
68,381 Tesco PLC 203,233
5,783 Thames Water PLC 80,193
42,480 Unilever PLC 376,540
22,479 Vodafone Group PLC 414,054
-----------
10,167,032
TOTAL FOREIGN STOCKS
(Cost-- $27,368,974) $28,602,488
- -------------------------------------------------------------
CONVERTIBLE BOND -- 0.1%
- -------------------------------------------------------------
FRANCE -- 0.1%
4,000 France Telecom, 2.00% due 1/1/2004 $ 38,784
(Cost -- $30,220)
SUB-TOTAL INVESTMENTS
(Cost-- $27,399,194) $28,641,272
- -------------------------------------------------------------
REPURCHASE AGREEMENT -- 0.3%
- -------------------------------------------------------------
$78,000 State Street Bank & Trust
Co., 4.80% due 5/3/1999;
Proceeds at maturity --
$78,031; (Fully collateralized
by U.S. Treasury Notes, 6.25%
due 4/30/2001; Market value --
$81,800) (Cost -- $78,000) $ 78,000
- -------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
- -------------------------------------------------------------
(Cost-- $27,477,194)(2) $28,719,272
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
- -------------------------------------------------------------
FOREIGN STOCKS -- 95.6%
- -------------------------------------------------------------
ARGENTINA -- 0.8%
5,200 YPF Sociedad Anonima -- Sponsored ADR $ 218,400
AUSTRALIA -- 7.1%
6,300 Brambles Industries Ltd. 185,125
28,700 Broken Hill Proprietary Co. Ltd. 324,463
23,800 Coles Myer Ltd. 126,454
19,800 National Australia Bank Ltd. 385,480
24,600 The News Corp. Ltd. 206,158
15,500 Rio Tinto Ltd. 261,044
15,400 TABCORP Holdings Ltd. 125,247
77,700 Telstra Corp. Ltd. 421,627
----------
2,035,598
AUSTRIA -- 0.4%
1,765 Austria Tabakwerke AG 108,164
BRAZIL -- 0.4%
6,600 Embratel Participacoes SA ADR 107,250
DENMARK -- 0.4%
1,060 Tele Danmark AS 109,236
FRANCE -- 12.3%
2,070 Axa SA 267,271
2,110 Banque Nationale de Paris 174,898
990 Castorama Dubois Investisse 236,927
2,947 Elf Aquitaine SA 457,729
2,400 Equant NV 217,829
2,670 France Telecom SA 215,675
1,930 Groupe GTM SA(1) 184,041
1,950 Lafarge SA 189,554
5,610 Lagardere S.C.A. 222,164
220 Promodes Group 139,471
1,770 Societe Generale-- A Shares 316,809
1,480 Societe Television Francaise 1 289,297
1,210 Suez Lyonnaise des Eaux 205,836
1,500 Total SA-- B Shares 205,403
860 Vivendi SA 200,908
----------
3,523,812
GERMANY -- 2.6%
690 Allianz AG-- Registered Shares(2) 219,810
3,340 BASF AG(2) 146,279
1,988 Deutsche Bank AG 115,529
3,710 Siemens AG(2) 274,399
----------
756,017
INDIA -- 0.4%
5,000 Pentafour Software & Exports Ltd. 113,750
INDONESIA -- 0.3%
9,500 PT Tambang Timah Tbk GDR
-- Registered Shares 85,262
IRELAND -- 1.1%
9,650 Bank of Ireland 193,218
2,400 Elan Corp. PLC-- Sponsored ADR 123,600
----------
316,818
ISRAEL -- 0.4%
33,900 Bezeq Israeli
Telecommunication Corp. Ltd.(1) 131,741
ITALY -- 4.8%
5,220 Assicurazioni Generali(2) 203,244
32,060 Autostrade Concessioni e
Costruzioni Autostrade S.p.A. 230,347
34,290 ENI S.p.A. 225,718
133,510 Finmeccanica S.p.A. 131,474
12,010 Istituto Bancario San Paolo di
Torina S.p.A. 180,195
37,310 Telecom Italia S.p.A.(2) 396,977
----------
1,367,955
</TABLE>
28 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 31
ING International Equity Fund (continued)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
<S> <C>
- -------------------------------------------------------------
JAPAN -- 17.2%
13,000 Canon, Inc. $ 317,923
14,000 Chugai Pharmaceutical Co., Ltd. 166,499
8,000 Daiichi Pharmaceutical Co., Ltd. 129,983
29,000 Fuji Heavy Industries Ltd. 194,305
10,000 Fuji Photo Film Co. 377,722
9,000 Hitachi Credit Corp. 394,372
54,000 Hitachi Ltd. 189,950
25 Japan Tobacco, Inc. 251,256
8,000 Marui Co., Ltd. 132,730
74,000 Mitsubishi Corp. 489,615
110,000 Mitsubishi Heavy Industries, Ltd. 481,826
2,000 Nintendo Co. Ltd. 186,432
40,000 Ricoh Co., Ltd. 385,260
31,000 Sekisui House, Ltd. 347,127
1,600 Sony Corp. 149,414
125,000 Sumitomo Metal Industries Ltd.(1) 166,457
5,000 Taisho Pharmaceutical Co., Ltd. 153,685
41,000 Toray Industries, Inc. 217,362
19,000 Yamaha Corp. 201,616
-----------
4,933,534
MEXICO -- 0.5%
12,500 Grupo Iusacell SA -- Sponsored
ADR Series L(1) 140,625
NETHERLANDS -- 3.5%
3,170 Akzo Nobel NV(2) 143,188
2,320 Koninklijke (Royal) Philips
Electronics NV(1) 199,782
7,310 Royal Dutch Petroleum Co. 425,578
8,670 TNT Post Group NV 233,598
-----------
1,002,146
NEW ZEALAND -- 0.5%
27,800 Telecom Corp. of New Zealand Ltd. 144,808
PERU -- 0.1%
3,000 Southern Peru Copper Corp. 42,750
POLAND -- 0.4%
19,500 Telekomunikacja Polska SA GDR(1) 120,900
SINGAPORE -- 4.2%
21,000 City Developments Ltd. 139,893
29,000 Keppel Corp. Ltd. 82,745
11,000 Natsteel Electronics Ltd. 36,963
31,000 Oversea-Chinese Banking Corp. Ltd. 290,574
27,000 Singapore Airlines Ltd. 248,305
15,000 Singapore Press Holdings Ltd. 221,069
100,000 Singapore Telecommunications, Ltd. 185,109
-----------
1,204,658
SPAIN -- 3.0%
5,370 Argentaria, Caja Postal y Banco
Hipotecario de Espana, SA 126,302
12,972 Banco Santander Central Hispano, SA 281,800
6,430 Endesa SA(2) 142,944
4,700 Grupo Televisa SA-- Sponsored GDR(1) 192,700
2,127 Telefonica SA(1) 99,671
2,127 Telefonica SA Bonus Rights(1) 1,978
-----------
845,395
SOUTH AFRICA -- 0.8%
33,300 Sappi Ltd. 240,789
SOUTH KOREA -- 0.9%
10,000 Samsung Electronics --
Sponsored GDR(3) 227,500
546 Samsung Electronics --
Sponsored GDR Non-Voting Shares 24,390
-----------
251,890
SWEDEN -- 1.0%
13,490 Electrolux AB-- Series B(2) 273,414
SWITZERLAND -- 8.7%
140 ABB AG -- Bearer Shares $ 204,155
420 Adecco SA -- Registered Shares 211,679
120 Compagnie Financiere Richemont
AG -- A Unit(2) 204,011
890 Credit Suisse Group --
Registered Shares(2) 176,449
160 Novartis AG -- Registered Shares(2) 234,159
1,010 Oerlikon-Buehrle Holding
AG -- Registered Shares(2) 148,607
690 PubliGroupe SA(2) 422,827
36 Roche Holding AG 423,280
620 UBS AG-- Registered Shares(2) 210,486
390 Zurich Allied AG(2) 251,259
-----------
2,486,912
TURKEY -- 0.2%
2,236,400 Akbank T.A.S. 71,339
UNITED KINGDOM -- 23.6%
15,600 Airtours PLC 107,912
12,900 Amvescap PLC 136,965
55,100 ASDA Group PLC 184,148
6,000 AstraZeneca Group PLC 234,838
32,000 Avis Europe PLC 135,388
15,800 BAA PLC 165,213
36,700 BG PLC 205,899
36,800 BP Amoco PLC 697,970
12,900 Bank of Scotland 192,996
10,700 Barclays PLC 339,786
22,000 British Aerospace PLC 164,570
9,600 The British Land Co. PLC 87,642
35,000 British Telecommunications PLC 587,819
4,700 Dixons Group PLC 100,333
2,370 EMAP PLC 50,288
7,400 GKN PLC 126,365
13,100 Glaxo Wellcome PLC 387,340
13,000 Granada Group PLC 277,726
4,750 Halifax PLC 66,938
7,000 Hays PLC 77,813
9,800 HSBC Holdings PLC 373,479
17,100 Kingfisher PLC 255,832
5,500 Laporte PLC 65,032
46,800 Legal & General Group PLC 136,082
31,900 Lloyds TSB Group PLC 513,432
9,700 Provident Financial PLC 161,818
19,300 Reuters Group PLC 261,423
14,000 SmithKline Beecham PLC 185,129
15,100 Vodafone Group PLC 278,136
24,100 WPP Group PLC 212,845
-----------
6,771,157
TOTAL FOREIGN STOCKS
(Cost-- $24,777,049) $27,404,320
- -------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.4%
- -------------------------------------------------------------
$1,259,000 State Street Bank & Trust Co.,
4.80% due 5/3/1999; Proceeds at
maturity -- $1,259,504; (Fully
collateralized by U.S. Treasury
Notes, 5.75% due 10/31/2002;
Market value -- $1,287,335)
(Cost -- $1,259,000) $ 1,259,000
- -------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
- -------------------------------------------------------------
(Cost-- $26,036,049)(4) $28,663,320
</TABLE>
1. Non-income producing security.
2. Security is partially segregated to cover open forward foreign currency
contracts.
3. Security is exempt from registration under Rule 144a of the Securities
Act of 1933. This security may be resold in transactions that are
exempt from registration, normally to qualified institutional buyers.
4. Aggregate cost for Federal income tax purposes is substantially the
same.
ADR -- American Depository Receipt.
GDR -- Global Depository Receipt.
See Notes to Financial Statements.
ING Funds Semi-Annual Report / April 30, 1999 29
<PAGE> 32
APRIL 30, 1999 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 98.9%
AUSTRALIA -- 2.3%
315,700 Foster's Brewing Group Ltd. $ 920,895
FINLAND -- 6.2%
31,390 Nokia Oyj 2,419,509
FRANCE -- 7.4%
2,830 L'OREAL 1,812,048
4,150 Louis Vuitton Moet Hennessy 1,112,885
-----------
2,924,933
GERMANY -- 2.1%
4,900 Adidas-Salomon AG 482,528
4,950 Volkswagen AG 350,944
-----------
833,472
JAPAN -- 5.5%
12,000 Canon, Inc. 293,467
8,000 Fuji Photo Film Co. 302,178
12,000 Honda Motor Co., Ltd. 528,643
8,000 Sony Corp. 747,069
10,000 Toyota Motor Corp. 283,920
-----------
2,155,277
NETHERLANDS -- 8.0%
42,150 Heineken NV 2,115,445
14,850 Unilever NV -- Share Certificates 1,016,745
-----------
3,132,190
SWEDEN -- 2.1%
31,550 Telefonaktiebolaget LM Ericsson -- B Shares 828,295
SWITZERLAND -- 2.4%
520 Nestle S.A. -- Registered Shares 962,092
UNITED STATES -- 62.9%
1,630 America Online, Inc.(1) 232,683
9,850 American Express Co. 1,287,272
25,400 The Coca-Cola Co. 1,727,200
13,600 Colgate-Palmolive Co. 1,393,150
52,450 Compaq Computer Corp. 1,170,291
9,450 Ford Motor Co. 604,209
25,550 The Gillette Co. 1,333,391
11,350 Gucci Group NV -- NY Registered Shares 856,216
38,150 Intel Corp. 2,334,303
14,900 Johnson & Johnson 1,452,750
18,300 Mattel, Inc. 473,512
35,600 McDonald's Corp. 1,508,550
26,000 Microsoft Corp.(1) 2,114,125
7,350 NIKE, Inc. -- B Shares 457,078
32,500 The Pepsi Bottling Group, Inc.(1) 684,531
25,050 PepsiCo, Inc. 925,284
30,250 Philip Morris Cos. Inc. 1,060,641
10,750 The Procter & Gamble Co. 1,008,484
27,350 Time Warner Inc. 1,914,500
36,550 The Walt Disney Co. 1,160,462
11,550 Wm. Wrigley Jr. Co. 1,024,341
-----------
24,722,973
TOTAL COMMON STOCK
(Cost -- $36,338,489) $38,899,636
REPURCHASE AGREEMENT -- 1.1%
$441,000 State Street Bank & Trust Co., 4.800% due 5/3/1999;
Proceeds at maturity -- $441,176; (Fully collateralized
by U.S. Treasury Notes, 4.625% due 12/31/2000;
Market value -- $453,667) (Cost -- $441,000) $ 441,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $36,779,489)(2) $39,340,636
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Ratings(1) Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE BONDS -- 96.5%
AIRLINES -- 3.4%
$1,000,000 Amtran, Inc., Senior Unsecured Notes,
9.625% due 12/15/2005 B+/B2 $ 1,017,500
APPAREL MANUFACTURERS -- 1.6%
500,000 Fruit of the Loom, Senior Unsecured
Notes, 8.875% due 4/15/2006(2) BB/Ba1 495,000
AUTO PARTS -- 1.6%
500,000 Federal-Mogul Corp., Notes,
7.500% due 1/15/2009(2) BB+/Ba2 488,385
BEVERAGES -- 3.4%
1,000,000 Canandaigua Brands Inc., Unsecured
Senior Notes, 8.500% due 3/1/2009 B+/B1 1,027,500
BROADCASTING SERVICE -- 3.5%
1,000,000 Echostar DBS Corp., Senior Notes,
9.250% due 2/1/2006(2) B/B2 1,045,000
BUILDINGS -- 3.4%
500,000 Del E. Webb Corp., Senior Subordinated
Debentures, 10.250% due 2/15/2010 B-/B2 517,500
500,000 U.S. Home Corp., Senior Subordinated
Notes, 8.875% due 2/15/2009 BB-/B1 506,875
-----------
1,024,375
CABLE TV -- 10.1%
1,000,000 Century Communications, Senior
Notes, 9.500% due 3/1/2005 BB-/Ba3 1,075,000
Jones Intercable, Inc., Senior Notes:
500,000 9.625% due 3/15/2002 BB+/Ba2 536,250
700,000 7.625% due 4/15/2008 BB+/Ba2 735,000
1,000,000 Telewest Communications PLC,
Senior Discount Notes, 9.250%
due 4/15/2009(2) B+/B1 682,500
-----------
3,028,750
CELLULAR TELECOMMUNICATIONS -- 4.8%
1,100,000 Orange PLC, Senior Notes,
8.000% due 8/1/2008 B+/Ba3 1,135,750
300,000 Rogers Cantel Mobile Communications,
Inc., Senior Subordinated Notes,
8.800% due 10/1/2007 BB-/B2 318,750
-----------
1,454,500
CONTAINERS - METAL/GLASS -- 1.6%
500,000 Owens-Illinois, Inc., Debentures,
7.500% due 5/15/2010 BB+/Ba1 493,227
INDUSTRIAL -- 3.5%
1,000,000 Volume Services America,
Senior Subordinated Notes,
11.250% due 3/1/2009(2) B-/B3 1,065,000
MEDICAL - HOSPITALS -- 4.9%
500,000 Rural/Metro Corp., Senior Notes,
7.875% due 3/15/2008 BB-/Ba3 480,000
1,000,000 Tenet Healthcare Corp.,
Senior Subordinated Notes,
8.125% due 12/1/2008(2) BB-/Ba3 990,000
-----------
1,470,000
</TABLE>
30 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 33
ING HIGH YIELD BOND FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Ratings(1) Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
MISCELLANEOUS MANUFACTURER -- 5.1%
$1,000,000 Advanced Glassfiber Yarns LLC,
Senior Subordinated Notes,
9.875% due 1/15/2009(2) B/B2 $ 1,025,000
500,000 Westinghouse Air Brake, Senior Notes,
9.375% due 6/15/2005(2) B+/Ba3 522,500
-----------
1,547,500
MULTIMEDIA -- 5.2%
1,500,000 Ackerley Group Inc., Series B,
Senior Subordinated Notes,
9.000% due 1/15/2009(2) B/B2 1,556,250
OIL -- 8.3%
500,000 Gulf Canada Resources, Senior
Notes, 8.375% due 11/15/2005 BB+/Ba1 513,750
Nuevo Energy Co.:
500,000 Senior Subordinated Notes,
9.500% due 4/15/2006 B+/B1 516,250
1,000,000 Senior Unsecured Notes,
8.875% due 6/1/2008 B+/B1 1,010,000
500,000 Parker Drilling Co., Series D,
Senior Unsecured Notes,
9.750% due 11/15/2006 B+/B1 457,500
-----------
2,497,500
PRINTING - COMMERCIAL -- 3.4%
1,000,000 Phoenix Color Corp.,
Senior Subordinated Notes,
10.375% due 2/1/2009(2) B-/B3 1,020,000
RACETRACKS -- 1.6%
450,000 Hollywood Park, Inc.,
Senior Subordinated Notes,
9.250% due 2/15/2007(2) B/B2 466,875
RADIO -- 3.4%
1,000,000 Chancellor Media Corp., Series B,
Senior Subordinated Notes,
8.125% due 12/15/2007 B/B1 1,015,000
RENTAL AUTO/EQUIPMENT -- 3.3%
1,000,000 Budget Group, Inc., Senior Notes,
9.125% due 4/1/2006(2) BB-/B1 995,000
RETAIL - DISCOUNT -- 3.3%
1,000,000 Ames Department Stores, Inc.,
Senior Notes, 10.000% due 4/15/2006(2) B+/B2 992,500
TELECOMMUNICATION SERVICES -- 16.1%
500,000 Bresnan Communications, Senior Notes,
8.000% due 2/1/2009(2) B+/B2 516,250
1,000,000 Global Crossing Holding, Ltd.,
Senior Subordinated Notes,
Payment-in-Kind,
10.500% due 6/1/2002 B-/B3 1,162,500
1,000,000 Hyperion Telecommunications,
Senior Subordinated Notes,
12.000% due 11/1/2007(2) B/Caa1 1,055,000
ITC Deltacom Inc., Senior Notes:
500,000 8.875% due 3/1/2008 B/B2 518,750
500,000 9.750% due 11/15/2008 B/B2 530,000
1,000,000 McLeodUSA, Inc., Senior Notes,
9.500% due 11/1/2008 B+/B2 1,080,000
-----------
4,862,500
TRANSPORTATIONS -- 5.0%
$ 500,000 Railworks, Corp., Senior Subordinated
Notes, 11.500% due 4/15/2009(2) B/B3 $ 513,750
1,000,000 Sea Containers, Senior Notes,
7.875% due 2/15/2008 BB-/Ba3 980,000
-----------
1,493,750
TOTAL CORPORATE BONDS
(Cost -- $28,556,323) $29,056,112
REPURCHASE AGREEMENT -- 3.5%
$1,063,000 State Street Bank & Trust Co., 4.800% due
5/3/1999; Proceeds at maturity -- $1,063,425;
(Fully collateralized by U.S. Treasury Notes,
12.000% due 8/15/2003; Market value --
$1,088,719) (Cost -- $1,063,000) $ 1,063,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $29,619,323)(3) $30,119,112
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Security is exempt from registration under Rule 144a of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers. Rule 144a
securities amounted to $13,429,010 in market value or 43.8% of net assets.
3. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Funds Semi-Annual Report / April 30, 1999 31
<PAGE> 34
APRIL 30, 1999 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING INTERMEDIATE BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Ratings(1) Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 8.9%
US Treasury Notes:
$1,000,000 5.250% due 8/15/2003 NR/NR $ 999,063
175,000 5.875% due 11/15/2005 NR/NR 179,922
135,000 4.750% due 11/15/2008 NR/NR 128,967
US Treasury Bonds:
1,170,000 5.500% due 8/15/2028 NR/NR 1,112,962
750,000 5.250% due 11/15/2028 NR/NR 693,281
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost -- $3,199,421) $ 3,114,195
U.S. GOVERNMENT AGENCIES -- 8.2%
Federal Home Loan Bank:
2,000,000 5.125% due 9/15/2003 NR/Aaa $ 1,962,790
400,000 Series 100, 5.800% due 9/2/2008 NR/Aaa 395,429
500,000 Tennessee Valley Authority,
Series C, 6.000% due 3/15/2013 NR/Aaa 498,211
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost -- $2,953,995) $ 2,856,430
CORPORATE BONDS -- 75.3%
AEROSPACE -- 2.8%
1,000,000 Raytheon Co., Notes,
5.700% due 11/1/2003 BBB/Baa1 $ 984,364
CABLE TV -- 5.2%
Jones Intercable Inc., Senior Notes:
1,000,000 9.625% due 3/15/2002 BB+/Ba2 1,072,500
700,000 7.625% due 4/15/2008 BB+/Ba2 735,000
-----------
1,807,500
CASINO HOTELS -- 2.9%
1,000,000 Harrah's Operating Co., Inc.,
Senior Unsecured Notes,
7.500% due 1/15/2009 BBB-/Baa3 1,018,842
CHEMICALS-DIVERSIFIED -- 3.0%
1,000,000 Equistar Chemicals LP, Senior
Notes, 8.500% due 2/15/2004(2) BBB-/Baa3 1,025,044
COMMERCIAL BANKS -- 2.9%
1,000,000 Popular Inc., Medium Term Notes,
6.200% due 4/30/2001 BBB+/A3 997,634
DIVERSIFIED OPERATIONS -- 2.9%
1,000,000 Williams Holdings of Delaware,
Notes, 6.500% due 12/1/2008 BBB-/Baa2 991,740
ELECTRIC-INTEGRATED -- 5.9%
1,000,000 Texas-New Mexico Power, Senior
Notes, 6.250% due 1/15/2009 BBB/Baa2 976,324
1,000,000 Niagara Mohawk Power, Series G,
Senior Notes, 7.750% due 10/1/2008 BB+/Ba2 1,063,052
-----------
2,039,376
FINANCIAL -- 14.5%
1,000,000 Finova Capital Corp., Notes,
6.250% due 8/15/2000 A-/Baa1 1,006,151
1,000,000 Ford Motor Credit Co., Notes,
5.125% due 10/15/2001 A/A1 988,116
1,000,000 IKON Capital Inc., Series C,
Medium Term Notes, 6.330%
due 12/8/2000 BBB+/Baa1 991,367
1,000,000 Lehman Brothers Holdings Co.,
Series E, Medium Term Notes,
6.900% due 1/29/2001 A/Baa1 1,013,546
1,000,000 Newcourt Credit Group, Notes,
6.875% due 2/16/2005(2) BBB/Baa3 1,025,995
-----------
5,025,175
FUNERAL SERVICES & RELATED ITEMS -- 2.7%
1,000,000 Service Corp. International, Notes,
6.000% due 12/15/2005 BBB/Baa1 945,802
OIL-FIELD SERVICES -- 2.7%
$1,000,000 Petro Geo-Services ASA, Senior
Notes, 7.125% due 3/30/2028 BBB/Baa3 $ 949,206
REITS-HEALTH CARE -- 2.8%
1,000,000 HRPT Properties Trust, Series A, Senior
Notes, 6.750% due 12/18/2002 BBB/Baa2 986,400
RETAILS -- 2.8%
1,000,000 Rite Aid Corp., Notes, 5.500% due
12/15/2000(2) BBB+/Baa1 987,251
SUPER-REGIONAL BANKS -- 2.9%
1,000,000 National City Corp., Subordinated
Notes, 6.875% due 5/15/2019 A-/A2 990,300
TELECOMMUNICATION SERVICE -- 6.1%
1,000,000 McLeodUSA Inc., Senior Notes,
9.500% due 11/1/2008 B+/B2 1,080,000
1,000,000 Qwest Communications International,
Senior Notes, 7.500% due 11/1/2008(2) BB+/Ba1 1,051,250
-----------
2,131,250
TELEPHONE -- 2.8%
1,000,000 Sprint Capital Corp.,
Senior Unsecured Notes,
6.875% due 11/15/2028 BBB+/Baa1 972,252
TOBACCO -- 2.9%
1,000,000 Philip Morris Cos. Inc., Notes,
7.000% due 7/15/2005 A/A2 1,023,054
TRANSPORTATION -- 8.7%
999,704 Federal Express Corp., Series 981A,
Pass Through Certificates,
6.720% due 1/15/2022 AAA/Aa2 1,008,721
1,000,000 Northwest Airlines Corp., Series
991A, Pass Through Certificates,
6.810% due 2/1/2020 AA/Aa3 996,740
1,000,000 Union Pacific Corp., Notes,
7.375% due 5/15/2001 BBB-/Baa3 1,028,626
-----------
3,034,087
WIRE & CABLE PRODUCTS -- 0.8%
300,000 Ametek Inc., Senior Notes,
7.200% due 7/15/2008(2) BBB/Ba1 289,435
TOTAL CORPORATE BONDS
(Cost -- $26,448,515) $26,198,712
SUB-TOTAL INVESTMENTS
(Cost -- $32,601,931) $32,169,337
REPURCHASE AGREEMENT -- 7.6%
$2,630,000 State Street Bank & Trust Co., 4.800% due
5/3/1999; Proceeds at maturity -- $2,631,052;
(Fully collateralized by U.S. Treasury Notes,
12.000% due 8/15/2013; Market value --
$2,688,469) (Cost -- $2,630,000) $ 2,630,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $35,231,931)(3) $34,799,337
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Security is exempt from registration under Rule 144a of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers. Rule 144a
securities amounted to $4,378,975 in market value or 12.8% of net assets.
3. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
32 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 35
ING MONEY MARKET FUND
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Ratings(1) Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES(2) -- 5.3%
$ 500,000 Federal Home Loan Bank,
5.10% due 3/3/2000 NR/NR $ 499,814
152,000 Federal Mortgage Corp.,
4.90% due 8/20/1999 NR/NR 149,788
1,000,000 Fannie Mae, 5.00% due 4/20/2000 NR/NR 999,719
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost -- $1,649,321) $ 1,649,321
COMMERCIAL PAPER(2) -- 89.9%
AGRICULTURAL OPERATIONS -- 2.1%
673,000 Cargill Inc.,
4.93% due 5/14/1999 to 6/10/1999 A1/P1 670,022
AUTOMOBILE -- 3.0%
939,000 DaimlerChrysler North America
Holding Corp., 4.94% due
5/7/1999 to 8/25/1999 A1/P1 928,003
BEVERAGES -- 2.9%
900,000 Coca-Cola Co., 4.93% to 4.97%
due 5/7/1999 to 5/17/1999(3) A1+/P1 898,602
CHEMICAL -- 3.0%
954,000 DuPont E.I. de Nemours Co.,
4.91% to 4.92% due
5/13/1999 to 7/14/1999 A1+/P1 948,364
COMMERCIAL BANK -- 1.1%
350,000 Abbey National North America,
4.91% to 4.96% due
5/3/1999 to 7/8/1999 A1+/P1 348,581
COMPUTERS -- 2.9%
900,000 IBM Corp., 4.93% to 4.97% due
5/17/1999 to 6/24/1999 A1/P1 896,023
COSMETICS -- 1.5%
486,000 Procter and Gamble Co.,
4.92% due 5/13/1999 A1+/P1 485,222
DIVERSIFIED FINANCIAL SERVICES -- 10.5%
900,000 Associates Corp. North America,
4.93% due 5/12/1999 to 5/20/1999 A1+/P1 898,138
500,000 Eksportfinans ASA,
4.92% due 5/5/1999 A1+/P1 499,734
606,000 General Electric Capital Corp.,
4.95% to 4.99% due
5/12/1999 to 7/12/1999 A1+/P1 603,417
1,297,000 Transamerica Financial Corp.,
4.94% to 5.15% due
5/6/1999 to 6/25/1999 A1/P1 1,292,304
-----------
3,293,593
ELECTRIC -- 2.7%
849,000 MDU Resources Group Inc.,
4.87% due 5/25/1999 A1/P1 846,295
ELECTRONIC -- 1.9%
595,000 Motorola Inc., 4.94% due 7/1/1999 A1+/P1 590,151
FINANCE-AUTO LOANS -- 6.8%
1,300,000 Ford Motor Credit Co., 4.92% to 4.94%
due 5/11/1999 to 5/21/1999 A1/P1 1,297,519
835,000 Toyota Motor Credit Corp.,
4.87% due 6/1/1999 A1+/P1 831,563
-----------
2,129,082
FINANCE-CONSUMER LOANS -- 3.5%
500,000 American General Finance Corp.,
4.94% due 5/11/1999 A1/P1 499,332
600,000 Household Finance Corp.,
4.89% due 7/1/1999 A1/P1 595,140
-----------
1,094,472
FINANCE-CREDIT CARD -- 4.3%
$1,360,000 American Express Credit Corp.,
4.93% to 5.00% due
5/13/1999 to 11/17/1999 A1/P1 $ 1,343,152
FINANCE-INVESTMENT BANK -- 6.8%
961,000 Goldman Sachs Group,
4.93% to 4.97% due 9/8/1999 A1+/P1 944,393
787,000 Merrill Lynch & Co., Inc.,
4.94% due 6/11/1999 A1+/P1 782,671
400,000 Morgan Stanley Dean Witter,
4.96% due 5/18/1999 A1/P1 399,084
-----------
2,126,148
FINANCE-OTHER SERVICES -- 2.0%
650,000 Caterpillar Financial Service Corp.,
4.90% due 8/4/1999 A1/P1 641,818
FINANCE-SPECIAL PURPOSE ENTITY -- 4.4%
551,000 AIG Funding, Inc., 4.89% to 4.94%
due 5/28/1999 A1+/P1 549,026
837,000 Corporate Asset Funding Co.,
4.92% to 4.93% due
6/10/1999 to 7/16/1999 A1+/P1 830,248
-----------
1,379,274
FOOD -- 5.7%
1,003,000 Archer Daniels Midland,
4.94% to 4.95% due
6/4/1999 to 6/15/1999 A1+/P1 997,696
802,000 Sara Lee Corp., 4.82% due 5/3/1999 A1+/P1 801,788
-----------
1,799,484
MACHINERY -- 4.8%
1,496,000 Deere & Co., 4.86% to 4.92%
due 5/5/1999 to 5/24/1999 A1/P1 1,492,538
MEDICAL-DRUGS -- 5.9%
500,000 American Home Products,
5.00% due 5/27/1999(3) A1/P1 498,270
500,000 Schering Corp., 4.93% due 6/2/1999 A1+/P1 497,862
846,000 SmithKline Beecham Corp.,
4.87% due 5/4/1999 A1+/P1 845,662
-----------
1,841,794
METALS -- 1.8%
568,000 Aluminum Co. of America,
4.94% due 5/10/1999 A1/P1 567,314
MULTIMEDIA -- 4.3%
1,373,000 The Walt Disney Co., 4.98% to 5.00%
due 11/4/1999 to 11/9/1999 A1/P1 1,338,124
PHOTO EQUIPMENT AND SUPPLIES -- 4.6%
1,458,000 Eastman Kodak Co.,
4.91% due 5/4/1999 to 7/27/1999 A1/P1 1,448,307
PIPELINES -- 1.2%
380,000 Consolidated Natural Gas,
4.85% due 5/10/1999 A1+/P1 379,547
SPECIAL PURPOSE ACQUISITION -- 1.6%
500,000 Delaware Funding Corp.,
4.94% due 6/16/1999 A1+/P1 496,914
TELEPHONES -- 0.6%
205,000 AT&T Corp., 4.92% due 5/21/1999 A1+/P1 204,452
TOTAL COMMERCIAL PAPER
(Cost -- $28,187,276) $28,187,276
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 33
<PAGE> 36
APRIL 30, 1999 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING MONEY MARKET FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal Market
Amount Ratings(1) Value
- -----------------------------------------------------------------------------------------
<S> <C> <C>
MEDIUM-TERM NOTES(2) -- 4.8%
DIVERSIFIED FINANCIAL SERVICES -- 1.6%
$500,000 Chrysler Financial Co. LLC, Series R,
5.11% due 5/15/2000 A1/P1 $ 503,717
FINANCE - INVESTMENT BANK -- 1.6%
500,000 Merrill Lynch & Co., Inc.,
5.01% due 5/17/1999(4) A1+/P1 501,766
FINANCE - LEASING COMPANY -- 1.6%
500,000 Xerox Credit Corp.,
5.22% due 3/21/2000 A1/P1 499,842
TOTAL MEDIUM-TERM NOTES
(Cost -- $1,505,325) $ 1,505,325
TOTAL INVESTMENTS -- 100.0%
(Cost -- $31,341,922)(5) $31,341,922
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Rate shown is yield to maturity on date of purchase in effect at April 30,
1999.
3. 4-2 commercial paper, security may be sold to institutional investors
only.
4. Floating rate note, date shown is the next interest reset date. Interest
rate in effect at April 30, 1999 is 5.40%.
5. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
BOND RATINGS
All ratings are by Standard & Poor's Rating Group (Standard & Poor's) and
Moody's Investors Service, Inc. (Moody's). The definitions of the applicable
rating symbol are set forth below:
Standard & Poor's applies indicators "+" and " - " to its rating categories. The
indicators show relative standing within the major rating categories.
AAA - Highest grade debts in which capacity to pay interest and repay
principal is extremely strong.
AA - High-grade debts having a very strong capacity to pay interest and
repay principal.
A - Upper medium grade debts that have a strong capacity to pay interest
and repay principal although they are somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions
than debts in higher rated categories.
BBB - Debts having an adequate capacity to pay interest and repay principal.
Whereas they normally exhibit adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal for debts in
this category than in higher rated categories.
BB,B, - Debts rated in these categories are predominantly speculative with
CCC, CC respect to capacity to pay interest and repay principal in accordance
with terms of the obligations; BB indicates the highest grade and CC
the lowest within the speculative rating categories.
Moody's applies numerical indicators 1, 2 and 3 to rating categories. The
modifier 1 indicates that the security is in the higher end of its rating
category; the modifier 2 indicates a mid-range ranking; and modifier 3 indicates
a ranking toward the lower end of the category.
Aaa - Debts judged to be the best quality and carry the smallest degree of
investment risk.
Aa - Debts judged to be of high quality by all standards.
A - Debts possess many favorable investment attributes and are to be
considered as "upper medium grade obligations."
Baa - Debts are considered to be medium grade obligations, they are neither
highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over
any great length of time.
Ba - Debts rated in this category are judged to have speculative elements,
their future cannot be considered as well assured.
B - Debts rated in this category generally lack characteristics of the
desirable investment.
Caa - Debts in this category are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to
principal or interest.
SHORT-TERM RATINGS
A-1 - Standard & Poor's highest rating for demand obligations and commercial
paper. It indicates that the degree of safety regarding timely payment
is strong. Those issues determined to possess extremely strong safety
characteristics will be denoted with a plus (+) designation.
A-2 - Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as
for issues designated "A-1."
P-1 - Moody's highest commercial paper rating. Issuers rated Prime-1 ("P-1")
have a superior ability for repayment of senior short-term promissory
obligations.
P-2 - Issuers rated Prime-2 ("P-2") have a strong ability for repayment of
senior short-term promissory obligations.
34 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 37
FOR THE PERIOD ENDED APRIL 30, 1999 (UNAUDITED)
FINANCIAL HIGHLIGHTS
ING SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Class B Class C Class X
throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 11.24
From investment operations:
Net investment loss (0.03) (0.02) (0.02) (0.02)
Net realized and unrealized gain (loss) 0.29 0.25 0.25 (0.97)
---------- ---------- ---------- ----------
Total from investment operations 0.26 0.23 0.23 (0.99)
---------- ---------- ---------- ----------
Distributions paid from investment income -- -- -- --
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 10.26 $ 10.23 $ 10.23 $ 10.25
NET ASSETS, END OF PERIOD (in thousands) $ 26,497 $ 396 $ 53 $ 322
Total investment return at net asset value(3,4) 2.60% 2.30% 2.30% - 8.81%
Ratios to average net assets:(5)
Net expenses 1.35% 2.00% 2.00% 2.00%
Gross expenses 2.55% 2.78% 2.78% 2.78%
Net investment loss - 0.75% - 1.59% - 1.60% - 1.72%
Portfolio turnover rate 50.23% 50.23% 50.23% 50.23%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total return
for Class X shares does not include the 2.00% bonus shares paid by the
Distributor. If the effect of bonus shares was included, total return for
Class X shares would have been (6.98)%.
4. Total return is not annualized.
5. Annualized.
FINANCIAL HIGHLIGHTS
ING FOCUS FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Class B Class C Class X
throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.85
From investment operations:
Net investment loss (0.01) (0.01) (0.00) (0.01)
Net realized and unrealized gain 1.97 1.94 1.93 1.08
---------- ---------- ---------- ----------
Total from investment operations 1.96 1.93 1.93 1.07
---------- ---------- ---------- ----------
Distributions paid from investment income -- -- -- --
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 11.96 $ 11.93 $ 11.93 $ 11.92
NET ASSETS, END OF PERIOD (in thousands) $ 30,744 $ 731 $ 120 $ 565
Total investment return at net asset value(3,4) 19.60% 19.30% 19.30% 9.86%
Ratios to average net assets:(5)
Net expenses 1.32% 1.94% 1.92% 1.92%
Gross expenses 2.51% 2.71% 2.66% 2.70%
Net investment loss - 0.18% - 0.94% - 0.79% - 0.90%
Portfolio turnover rate 37.20% 37.20% 37.20% 37.20%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 12, 1999.
3. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the
applicable sales charges with respect to Class A shares or the applicable
contingent deferred sales charges with respect to Class B, C, and X
shares. Total return for Class X shares does not include the 2.00% bonus
shares paid by the Distributor. If the effect of bonus shares was
included, total return for Class X shares would have been 12.06%.
4. Total return is not annualized.
5. Annualized.
ING Funds Semi-Annual Report / April 30, 1999 35
<PAGE> 38
FOR THE PERIOD ENDED APRIL 30, 1999 (UNAUDITED)
FINANCIAL HIGHLIGHTS
ING MID CAP GROWTH FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Class B Class C Class X
throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.53
From investment operations:
Net investment income (loss) 0.01 (0.02) (0.01) (0.02)
Net realized and unrealized gain (loss) 0.08 0.08 0.07 (0.44)
---------- ---------- ---------- ----------
Total from investment operations 0.09 0.06 0.06 (0.46)
---------- ---------- ---------- ----------
Distributions paid from investment income -- -- -- --
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 10.09 $ 10.06 $ 10.06 $ 10.07
NET ASSETS, END OF PERIOD (in thousands) $ 26,517 $ 132 $ 29 $ 198
Total investment return at net asset value(3,4) 0.90% 0.60% 0.60% - 4.37%
Ratios to average net assets:(5)
Net expenses 1.35% 2.00% 2.00% 2.00%
Gross expenses 2.55% 2.78% 2.76% 2.80%
Net investment income (loss) 0.29% - 1.07% - 0.90% - 1.08%
Portfolio turnover rate 11.98% 11.98% 11.98% 11.98%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 19, 1999.
3. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the
applicable sales charges with respect to Class A shares or the applicable
contingent deferred sales charges with respect to Class B, C, and X
shares. Total return for Class X shares does not include the 2.00% bonus
shares paid by the Distributor. If the effect of bonus shares was
included, total return for Class X shares would have been (2.46)%.
4. Total return is not annualized.
5. Annualized.
FINANCIAL HIGHLIGHTS
ING LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
For a share of beneficial interest Class A Class B Class C Class X
outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.82
From investment operations:
Net investment loss (0.01) (0.02) (0.02) (0.02)
Net realized and unrealized gain 1.44 1.43 1.43 0.61
---------- ---------- ---------- ----------
Total from investment operations 1.43 1.41 1.41 0.59
---------- ---------- ---------- ----------
Distributions paid from investment income -- -- -- --
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 11.43 $ 11.41 $ 11.41 $ 11.41
NET ASSETS, END OF PERIOD (in thousands) $ 32,819 $ 889 $ 549 $ 2,882
Total investment return at net asset value(3,4) 14.30% 14.10% 14.10% 5.45%
Ratios to average net assets:(5)
Net expenses 1.29% 1.94% 1.94% 1.94%
Gross expenses 2.30% 2.55% 2.55% 2.55%
Net investment loss - 0.36% - 1.16% - 1.17% - 1.18%
Portfolio turnover rate 14.79% 14.79% 14.79% 14.79%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the
applicable sales charges with respect to Class A shares or the applicable
contingent deferred sales charges with respect to Class B, C, and X
shares. Total return for Class X shares does not include the 2.00% bonus
shares paid by the Distributor. If the effect of bonus shares was
included, total return for Class X shares would have been 7.56%.
4. Total return is not annualized.
5. Annualized.
36 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 39
For the period ended April 30, 1999 (unaudited)
FINANCIAL HIGHLIGHTS
ING Tax Efficient Equity Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $10.00 $10.00 $11.08
From investment operations:
Net investment income 0.01 0.00 0.00 0.00
Net realized and unrealized gain 1.72 1.73 1.69 0.62
------- ------ ------ ------
Total from investment operations 1.73 1.73 1.69 0.62
------- ------ ------ ------
Distributions paid from investment income -- -- -- --
------- ------ ------ ------
Net asset value per share, end of period $ 11.73 $11.73 $11.69 $11.70
NET ASSETS, END OF PERIOD (in thousands) $39,898 $3,166 $ 162 $2,555
Total investment return at net asset value(3,4) 17.30% 17.30% 16.90% 5.60%
Ratios to average net assets:(5)
Net expenses 1.23% 1.86% 1.76% 1.85%
Gross expenses 2.27% 2.50% 2.33% 2.49%
Net investment income (loss) 0.39% -0.23% 0.12% -0.23%
Portfolio turnover rate 1.64% 1.64% 1.64% 1.64%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 7.71%.
4. Total return is not annualized.
5. Annualized.
FINANCIAL HIGHLIGHTS
ING Growth & Income Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $10.00 $10.00 $10.67
From investment operations:
Net investment income (loss) 0.01 (0.01) (0.00) (0.01)
Net realized and unrealized gain 1.04 1.05 1.03 0.36
------- ------ ------ ------
Total from investment operations 1.05 1.04 1.03 0.35
------- ------ ------ ------
Distributions paid from investment income (0.01) (0.02) -- (0.01)
------- ------ ------ ------
Net asset value per share, end of period $ 11.04 $11.02 $11.03 $11.01
NET ASSETS, END OF PERIOD (in thousands) $31,087 $ 282 $ 15 $ 706
Total investment return at net asset value(3,4) 10.52% 10.39% 10.30% 3.32%
Ratios to average net assets:(5)
Net expenses 1.26% 1.90% 1.90% 1.89%
Gross expenses 2.27% 2.50% 2.48% 2.51%
Net investment income (loss) 0.28% -0.45% -0.32% -0.42%
Portfolio turnover rate 10.23% 10.23% 10.23% 10.23%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 12, 1999.
3. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 5.39%.
4. Total return is not annualized.
5. Annualized.
ING Funds Semi-Annual Report / April 30, 1999 37
<PAGE> 40
For the period ended April 30, 1999 (unaudited)
FINANCIAL HIGHLIGHTS
ING International Bond Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $10.00 $10.00 $10.00 $ 9.87
From investment operations:
Net investment income(3) 0.06 0.03 0.03 0.03
Net realized and unrealized loss(4) (0.75) (0.74) (0.75) (0.63)
------ ------ ------ ------
Total from investment operations (0.69) (0.71) (0.72) (0.60)
------ ------ ------ ------
Distributions paid from investment income (0.08) (0.05) (0.05) (0.04)
------ ------ ------ ------
Net asset value per share, end of period $ 9.23 $ 9.24 $ 9.23 $ 9.23
NET ASSETS, END OF PERIOD (in thousands) $24,327 $ 348 $ 5 $ 617
Total investment return at net asset value(5,6) -6.95% -7.12% -7.21% -6.11%
Ratios to average net assets:(7)
Net expenses 1.48% 2.12% 2.21% 2.09%
Gross expenses 2.78% 3.02% 3.12% 2.98%
Net investment income 1.64% 0.91% 0.94% 1.04%
Portfolio turnover rate 65.03% 65.03% 65.03% 65.03%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Per share net investment income is based on average number of shares
outstanding during the period.
4. Includes gains and losses on foreign currency transactions.
5. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been (4.23)%.
6. Total return is not annualized.
7. Annualized.
FINANCIAL HIGHLIGHTS
ING Global Information Technology Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $10.00 $10.00 $10.00 $12.42
From investment operations:
Net investment loss (0.05) (0.02) (0.02) (0.03)
Net realized and unrealized gain (loss)(3) 2.12 2.06 2.06 (0.34)
------ ------ ------ ------
Total from investment operations 2.07 2.04 2.04 (0.37)
------ ------ ------ ------
Distributions paid from investment income -- -- -- --
------ ------ ------ ------
Net asset value per share, end of period $12.07 $12.04 $12.04 $12.05
NET ASSETS, END OF PERIOD (in thousands) $32,933 $ 899 $ 44 $ 939
Total investment return at net asset value(4,5) 20.70% 20.40% 20.40% -2.98%
Ratios to average net assets:(6)
Net expenses 1.50% 2.17% 2.14% 2.15%
Gross expenses 2.89% 3.13% 3.13% 3.11%
Net investment loss -1.07% -1.72% -1.70% -1.68%
Portfolio turnover rate 35.24% 35.24% 35.24% 35.24%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Includes gains and losses on foreign currency transactions.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been (1.04)%.
5. Total return is not annualized.
6. Annualized.
38 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 41
For the period ended April 30, 1999 (unaudited)
FINANCIAL HIGHLIGHTS
ING European Equity Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $10.00 $10.00 $10.53
From investment operations:
Net investment income 0.00 0.00 0.00 0.00
Net realized and unrealized gain(3) 0.69 0.67 0.67 0.14
-------- ------ ------ ------
Total from investment operations 0.69 0.67 0.67 0.14
-------- ------ ------ ------
Distributions paid from investment income -- -- -- --
-------- ------ ------ ------
Net asset value per share, end of period $ 10.69 $10.67 $10.67 $10.67
NET ASSETS, END OF PERIOD (in thousands) $ 27,544 $ 511 $ 21 $ 550
Total investment return at net asset value(4,5) 6.90% 6.70% 6.70% 1.33%
Ratios to average net assets:(6)
Net expenses 1.62% 2.27% 2.27% 2.27%
Gross expenses 2.93% 3.17% 3.15% 3.17%
Net investment income (loss) -0.03% -0.08% 0.17% 0.08%
Portfolio turnover rate 36.77% 36.77% 36.77% 36.77%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 15, 1999.
3. Includes gains and losses on foreign currency transactions.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 3.36%.
5. Total return is not annualized.
6. Annualized.
FINANCIAL HIGHLIGHTS
ING International Equity Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $10.00 $10.00 $10.24
From investment operations:
Net investment income 0.01 0.00 0.00 0.00
Net realized and unrealized gain(3) 1.19 1.18 1.17 0.94
------- ------ ------ ------
Total from investment operations 1.20 1.18 1.17 0.94
------- ------ ------ ------
Distributions paid from investment income -- -- -- --
------- ------ ------ ------
Net asset value per share, end of period $ 11.20 $11.18 $11.17 $11.18
NET ASSETS, END OF PERIOD (in thousands) $28,359 $ 152 $ 22 $ 119
Total investment return at net asset value(4,5) 12.00% 11.80% 11.70% 9.18%
Ratios to average net assets:(6)
Net expenses 1.59% 2.24% 2.24% 2.24%
Gross expenses 2.98% 3.21% 3.19% 3.17%
Net investment income (loss) 0.23% -0.23% -0.15% 0.15%
Portfolio turnover rate 44.58% 44.58% 44.58% 44.58%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on February 16, 1999.
3. Includes gains and losses on foreign currency transactions.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 11.36%.
5. Total return is not annualized.
6. Annualized.
ING Funds Semi-Annual Report / April 30, 1999 39
<PAGE> 42
For the period ended April 30, 1999 (unaudited)
Financial Highlights
ING Global Brand Names Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $10.00 $10.00 $10.76
From investment operations:
Net investment loss (0.01) (0.01) (0.02) (0.01)
Net realized and unrealized gain(3) 1.04 1.01 1.02 0.26
------- ------ ------ ------
Total from investment operations 1.03 1.00 1.00 0.25
------- ------ ------ ------
Distributions paid from investment income -- -- -- --
------- ------ ------ ------
Net asset value per share, end of period $ 11.03 $11.00 $11.00 $11.01
NET ASSETS, END OF PERIOD (in thousands) $31,208 $ 695 $6,829 $1,254
Total investment return at net asset value(4,5) 10.30% 10.00% 10.00% 2.32%
Ratios to average net assets:(6)
Net expenses 1.44% 2.09% 2.07% 1.99%
Gross expenses 2.64% 2.87% 2.86% 2.78%
Net investment income (loss) -0.35% - 0.81% 0.95% 0.77%
Portfolio turnover rate 6.50% 6.50% 6.50% 6.50%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 14, 1999.
3. Includes gains and losses on foreign currency transactions.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 4.37%.
5. Total return is not annualized.
6. Annualized.
FINANCIAL HIGHLIGHTS
ING High Yield Bond Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.02
From investment operations:
Net investment income(3) 0.26 0.23 0.25 0.21
Net realized and unrealized gain 0.33 0.33 0.31 0.30
------- ------- ------- -------
Total from investment operations 0.59 0.56 0.56 0.51
------- ------- ------- -------
Distributions paid from investment income (0.26) (0.22) (0.23) (0.20)
------- ------- ------- -------
Net asset value per share, end of period $ 10.33 $ 10.34 $ 10.33 $ 10.33
NET ASSETS, END OF PERIOD (in thousands) $28,754 $ 1,186 $ 241 $ 444
Total investment return at net asset value(4,5) 5.99% 5.69% 5.69% 5.11%
Ratios to average net assets:(6)
Net expenses 0.99% 1.71% 1.75% 1.73%
Gross expenses 2.13% 2.35% 2.38% 2.36%
Net investment income 6.92% 6.31% 6.55% 6.73%
Portfolio turnover rate 294.10% 294.10% 294.10% 294.10%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Per share net investment income is based on average number of shares
outstanding during the period.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 7.21%.
5. Total return is not annualized.
6. Annualized.
40 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 43
For the period ended April 30, 1999 (unaudited)
FINANCIAL HIGHLIGHTS
ING Intermediate Bond Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 9.87
From investment operations:
Net investment income(3) 0.17 0.15 0.15 0.13
Net realized and unrealized loss (0.23) (0.25) (0.23) (0.12)
------- ------- ------- -------
Total from investment operations (0.06) (0.10) (0.08) 0.01
------- ------- ------- -------
Distributions paid from investment income (0.17) (0.14) (0.15) (0.12)
------- ------- ------- -------
Net asset value per share, end of period $ 9.77 $ 9.76 $ 9.77 $ 9.76
NET ASSETS, END OF PERIOD (in thousands) $31,021 $ 1,580 $ 428 $ 1,053
Total investment return at net asset value(4,5) -0.56% -0.96% -0.84% 0.12%
Ratios to average net assets:(6)
Net expenses 0.95% 1.65% 1.68% 1.66%
Gross expenses 1.97% 2.16% 2.20% 2.18%
Net investment income 4.72% 4.14% 4.16% 4.25%
Portfolio turnover rate 148.63% 148.63% 148.63% 148.63%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Per share net investment income is based on average number of shares
outstanding during the period.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
sales charges with respect to Class A shares or the applicable contingent
deferred sales charges with respect to Class B, C, and X shares. Total
return for Class X shares does not include the 2.00% bonus shares paid by
the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 2.12%.
5. Total return is not annualized.
6. Annualized.
FINANCIAL HIGHLIGHTS
ING Money Market Fund
<TABLE>
<CAPTION>
Class A Class B Class C Class X
For a share of beneficial interest outstanding throughout the period: Shares(1) Shares(1) Shares(1) Shares(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
From investment operations:
Net investment income(3) 0.02 0.01 0.01 0.01
Net realized and unrealized gain -- -- -- --
------- ------ ------ ------
Total from investment operations 0.02 0.01 0.01 0.01
------- ------ ------ ------
Distributions paid from investment income (0.02) (0.01) (0.01) (0.01)
------- ------ ------ ------
Net asset value per share, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
NET ASSETS, END OF PERIOD (in thousands) $30,389 $ 64 $ 57 $ 765
Total investment return at net asset value(4,5) 1.64% 1.35% 1.34% 0.98%
Ratios to average net assets:(6)
Net expenses 0.66% 1.41% 1.42% 1.39%
Gross expenses 1.49% 1.75% 1.76% 1.73%
Net investment income 4.35% 3.55% 3.52% 3.50%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 20, 1999.
3. Per share net investment income is based on average number of shares
outstanding during the period.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
contingent deferred sales charges with respect to Class B, C and X shares.
Total return for Class X shares does not include the 2.00% bonus shares paid
by the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 3.00%.
5. Total return is not annualized.
6. Annualized.
ING Funds - Semi-Annual Report April 30, 1999 41
<PAGE> 44
April 30, 1999 (unaudited)
STATEMENTS OF ASSETS & LIABILITIES
<TABLE>
<CAPTION>
ING
ING ING ING LARGE CAP
SMALL CAP FOCUS MID CAP GROWTH
GROWTH FUND FUND GROWTH FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost $ 24,155,311 $ 24,557,885 $ 24,801,193 $ 32,473,441
Repurchase agreements, at cost 709,000 3,196,000 1,158,000 707,000
Foreign currency, at cost -- -- -- --
------------ ------------ ------------ ------------
Investments in securities, at value $ 26,596,050 $ 28,974,780 $ 25,886,931 $ 36,309,850
Repurchase agreements, at value 709,000 3,196,000 1,158,000 707,000
Cash 815 478 4,016 2,651
Foreign currency, at value -- -- -- --
Receivable for investment securities sold 1,555,599 -- 171,350 374,293
Receivable for fund shares sold -- 155 166 122,448
Receivable for open foreign currency contracts (Note 5) -- -- -- --
Dividend and interest receivable 1,167 20,509 5,533 12,453
Reimbursement from Manager (Note 3) -- -- 3,881 --
Prepaid registration expense 17,124 17,131 17,124 17,131
Prepaid insurance 2,019 2,019 2,019 2,019
------------ ------------ ------------ ------------
Total Assets 28,881,774 32,211,072 27,249,020 37,547,845
LIABILITIES:
Payable for investment securities purchased 1,570,152 -- 326,537 352,662
Dividend payable -- -- -- --
Shareholder services fee payable (Note 3) 5,469 6,481 5,360 7,544
Management fee payable (Note 3) 5,469 6,481 5,360 5,658
Distribution fee payable (Note 3) 2,526 3,139 2,309 5,013
Payable for open foreign currency contracts (Note 5) -- -- -- --
Other accrued expenses 30,709 34,480 33,148 37,704
------------ ------------ ------------ ------------
Total Liabilities 1,614,325 50,581 372,714 408,581
NET ASSETS $ 27,267,449 $ 32,160,491 $ 26,876,306 $ 37,139,264
Composition of Net Assets:
Par value of shares of beneficial interest $ 2,658 $ 2,690 $ 2,664 $ 3,249
Capital paid in excess of par value 26,650,233 27,213,566 26,646,318 33,288,268
Undistributed net investment income (net investment loss) (76,037) (21,097) 27,386 (47,563)
Accumulated net realized gain (loss) (1,750,144) 548,437 (885,800) 58,901
Net unrealized appreciation (depreciation) of
investments and foreign currency 2,440,739 4,416,895 1,085,738 3,836,409
NET ASSETS $ 27,267,449 $ 32,160,491 $ 26,876,306 $ 37,139,264
Class A Shares
Net Assets $ 26,496,575 $ 30,744,440 $ 26,516,602 $ 32,818,960
Shares Outstanding 2,583,083 2,571,531 2,628,685 2,870,690
Net Asset Value And Redemption Price Per Share $ 10.26 $ 11.96 $ 10.09 $ 11.43
Maximum Offering Price Per Share $ 10.89(1) $ 12.69(1) $ 10.71(1) $ 12.13(1)
Class B Shares
Net Assets $ 395,599 $ 730,987 $ 131,929 $ 888,955
Shares Outstanding 38,660 61,248 13,108 77,908
Net Asset Value Per Share(3) $ 10.23 $ 11.93 $ 10.06 $ 11.41
Class C Shares
Net Assets $ 53,212 $ 120,348 $ 29,396 $ 549,300
Shares Outstanding 5,201 10,086 2,922 48,163
Net Asset Value Per Share(4) $ 10.23 $ 11.93 $ 10.06 $ 11.41
Class X Shares
Net Assets $ 322,063 $ 564,716 $ 198,379 $ 2,882,049
Shares Outstanding 31,435 47,363 19,709 252,678
Net Asset Value Per Share(3) $ 10.25 $ 11.92 $ 10.07 $ 11.41
</TABLE>
<TABLE>
<CAPTION>
ING
TAX EFFICIENT
EQUITY FUND
- --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at cost $ 35,044,720
Repurchase agreements, at cost 5,636,000
Foreign currency, at cost --
------------
Investments in securities, at value $ 40,377,394
Repurchase agreements, at value 5,636,000
Cash 3,182
Foreign currency, at value --
Receivable for investment securities sold --
Receivable for fund shares sold 57,497
Receivable for open foreign currency contracts (Note 5) --
Dividend and interest receivable 24,839
Reimbursement from Manager (Note 3) 8,713
Prepaid registration expense 17,131
Prepaid insurance 2,019
------------
Total Assets 46,126,775
LIABILITIES:
Payable for investment securities purchased 280,687
Dividend payable --
Shareholder services fee payable (Note 3) 8,902
Management fee payable (Note 3) 7,121
Distribution fee payable (Note 3) 6,298
Payable for open foreign currency contracts (Note 5) --
Other accrued expenses 42,584
------------
Total Liabilities 345,592
NET ASSETS $ 45,781,183
Composition of Net Assets:
Par value of shares of beneficial interest $ 3,905
Capital paid in excess of par value 40,411,395
Undistributed net investment income (net investment loss) 46,422
Accumulated net realized gain (loss) (13,213)
Net unrealized appreciation (depreciation) of
investments and foreign currency 5,332,674
NET ASSETS $ 45,781,183
Class A Shares
Net Assets $ 39,898,462
Shares Outstanding 3,402,807
Net Asset Value And Redemption Price Per Share $ 11.73
Maximum Offering Price Per Share $ 12.45(1)
Class B Shares
Net Assets $ 3,165,535
Shares Outstanding 269,899
Net Asset Value Per Share(3) $ 11.73
Class C Shares
Net Assets $ 162,490
Shares Outstanding 13,897
Net Asset Value Per Share(4) $ 11.69
Class X Shares
Net Assets $ 2,554,696
Shares Outstanding 218,277
Net Asset Value Per Share(3) $ 11.70
</TABLE>
1. Maximum offering price per share is net asset value divided by 94.25%.
2. Maximum offering price per share is net asset value divided by 95.25%.
3. Redemption price is net asset value per share of Class B and X shares
reduced by a 5.00% CDSC if shares are redeemed within one year from purchase
(See Note 3).
4. Redemption price is net asset value per share of Class C shares reduced by a
1.00% CDSC if shares are redeemed within one year from purchase (See Note
3).
See Notes to Financial Statements.
42 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 45
<TABLE>
<CAPTION>
ING GLOBAL
ING ING INFORMATION ING
GROWTH & INTERNATIONAL TECHNOLOGY EUROPEAN
INCOME FUND BOND FUND FUND EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost $ 28,266,403 $ 25,451,619 $ 29,677,312 $ 27,399,194
Repurchase agreements, at cost 1,222,000 1,405,000 2,052,000 78,000
Foreign currency, at cost -- -- 54,721 41,973
------------ ------------ ------------ ------------
Investments in securities, at value $ 30,855,325 $ 24,413,230 $ 32,871,312 $ 28,641,272
Repurchase agreements, at value 1,222,000 1,405,000 2,052,000 78,000
Cash 12,773 460 154 533
Foreign currency, at value -- -- 55,363 45,277
Receivable for investment securities sold -- 1,093,041 182,249 --
Receivable for fund shares sold 3,816 6,322 131,267 13,500
Receivable for open foreign currency contracts (Note 5) -- 8,969 118 --
Dividend and interest receivable 23,518 524,897 5,720 91,078
Reimbursement from Manager (Note 3) -- -- -- 5,069
Prepaid registration expense 18,930 17,081 17,131 17,131
Prepaid insurance 2,019 2,019 2,019 2,019
------------ ------------ ------------ ------------
Total Assets 32,138,381 27,471,019 35,317,333 28,893,879
LIABILITIES:
Payable for investment securities purchased -- 2,068,754 432,793 193,614
Dividend payable 35 37,551 -- --
Shareholder services fee payable (Note 3) 6,523 5,167 7,000 5,749
Management fee payable (Note 3) 4,892 5,167 8,747 6,609
Distribution fee payable (Note 3) 3,075 2,508 3,663 2,814
Payable for open foreign currency contracts (Note 5) -- -- 658 512
Other accrued expenses 34,288 56,115 49,933 59,912
------------ ------------ ------------ ------------
Total Liabilities 48,813 2,175,262 502,794 269,210
NET ASSETS $ 32,089,568 $ 25,295,757 $ 34,814,539 $ 28,624,669
Composition of Net Assets:
Par value of shares of beneficial interest $ 2,906 $ 2,739 $ 2,885 $ 2,677
Capital paid in excess of par value 29,365,029 27,283,912 29,644,679 26,846,389
Undistributed net investment income (net investment loss) (3,265) 5,773 (87,118) 22,509
Accumulated net realized gain (loss) 135,976 (911,563) 2,058,856 508,246
Net unrealized appreciation (depreciation) of
investments and foreign currency 2,588,922 (1,085,104) 3,195,237 1,244,848
NET ASSETS $ 32,089,568 $ 25,295,757 $ 34,814,539 $ 28,624,669
Class A Shares
Net Assets $ 31,087,070 $ 24,326,691 $ 32,932,635 $ 27,543,612
Shares Outstanding 2,815,247 2,634,276 2,728,791 2,575,823
Net Asset Value And Redemption Price Per Share $ 11.04 $ 9.23 $ 12.07 $ 10.69
Maximum Offering Price Per Share $ 11.71(1) $ 9.69(2) $ 12.81(1) $ 11.34(1)
Class B Shares
Net Assets $ 281,820 $ 347,811 $ 898,836 $ 510,702
Shares Outstanding 25,583 37,662 74,659 47,875
Net Asset Value Per Share(3) $ 11.02 $ 9.24 $ 12.04 $ 10.67
Class C Shares
Net Assets $ 14,631 $ 4,672 $ 43,849 $ 20,523
Shares Outstanding 1,327 506 3,642 1,924
Net Asset Value Per Share(4) $ 11.03 $ 9.23 $ 12.04 $ 10.67
Class X Shares
Net Assets $ 706,047 $ 616,583 $ 939,219 $ 549,832
Shares Outstanding 64,109 66,772 77,969 51,541
Net Asset Value Per Share(3) $ 11.01 $ 9.23 $ 12.05 $ 10.67
</TABLE>
<TABLE>
<CAPTION>
ING ING ING ING
INTERNATIONAL GLOBAL BRAND HIGH YIELD INTERMEDIATE
EQUITY FUND NAMES FUND BOND FUND BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost $ 24,777,049 $ 36,338,489 $ 28,556,323 $32,601,931
Repurchase agreements, at cost 1,259,000 441,000 1,063,000 2,630,000
Foreign currency, at cost 17,488 14 -- --
------------ ------------ ------------ -----------
Investments in securities, at value $ 27,404,320 $ 38,899,636 $ 29,056,112 $32,169,337
Repurchase agreements, at value 1,259,000 441,000 1,063,000 2,630,000
Cash 3,990 459 253 735
Foreign currency, at value 12,504 13 -- --
Receivable for investment securities sold 59,647 -- 3,644,620 875,155
Receivable for fund shares sold 22,370 671,694 43,855 1,048,143
Receivable for open foreign currency contracts (Note 5) 46,453 -- -- --
Dividend and interest receivable 75,565 30,109 607,609 575,848
Reimbursement from Manager (Note 3) -- -- 7,666 5,087
Prepaid registration expense 17,131 17,131 17,523 17,523
Prepaid insurance 2,019 2,010 2,019 2,019
------------ ------------ ------------ -----------
Total Assets 28,902,999 40,062,052 34,442,657 37,323,847
LIABILITIES:
Payable for investment securities purchased 161,540 -- 3,591,990 3,068,511
Dividend payable -- -- 184,294 132,679
Shareholder services fee payable (Note 3) 5,753 7,901 6,141 6,669
Management fee payable (Note 3) 7,191 7,901 1,996 3,335
Distribution fee payable (Note 3) 2,430 7,056 931 1,689
Payable for open foreign currency contracts (Note 5) 24,754 -- -- --
Other accrued expenses 49,396 53,473 32,258 29,380
------------ ------------ ------------ -----------
Total Liabilities 251,064 76,331 3,817,610 3,242,263
NET ASSETS $ 28,651,935 $ 39,985,721 $ 30,625,047 $34,081,584
Composition of Net Assets:
Par value of shares of beneficial interest $ 2,557 $ 3,628 $ 2,963 $ 3,490
Capital paid in excess of par value 25,599,465 37,285,988 29,703,170 34,753,836
Undistributed net investment income (net investment loss) (3,302) (88,544) -- --
Accumulated net realized gain (loss) 406,921 223,239 419,125 (243,148)
Net unrealized appreciation (depreciation) of
investments and foreign currency 2,646,294 2,561,410 499,789 (432,594)
NET ASSETS $ 28,651,935 $ 39,985,721 $ 30,625,047 $34,081,584
Class A Shares
Net Assets $ 28,359,410 $ 31,208,493 $ 28,753,884 $31,020,629
Shares Outstanding 2,531,190 2,830,617 2,782,232 3,176,635
Net Asset Value And Redemption Price Per Share $ 11.20 $ 11.03 $ 10.33 $ 9.77
Maximum Offering Price Per Share $ 11.88(1) $ 11.70(1) $ 10.85(2) $ 10.26(2)
Class B Shares
Net Assets $ 151,722 $ 694,650 $ 1,186,202 $ 1,579,969
Shares Outstanding 13,569 63,167 114,758 161,832
Net Asset Value Per Share(3) $ 11.18 $ 11.00 $ 10.34 $ 9.76
Class C Shares
Net Assets $ 21,853 $ 6,828,639 $ 241,248 $ 427,536
Shares Outstanding 1,956 620,530 23,353 43,772
Net Asset Value Per Share(4) $ 11.17 $ 11.00 $ 10.33 $ 9.77
Class X Shares
Net Assets $ 118,950 $ 1,253,939 $ 443,713 $ 1,053,450
Shares Outstanding 10,640 113,934 42,951 107,902
Net Asset Value Per Share(3) $ 11.18 $ 11.01 $ 10.33 $ 9.76
</TABLE>
<TABLE>
<CAPTION>
ING MONEY
MARKET
FUND
- ------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at cost $31,341,922
Repurchase agreements, at cost --
Foreign currency, at cost --
-----------
Investments in securities, at value $31,341,922
Repurchase agreements, at value --
Cash 30
Foreign currency, at value --
Receivable for investment securities sold --
Receivable for fund shares sold --
Receivable for open foreign currency contracts (Note 5) --
Dividend and interest receivable 24,495
Reimbursement from Manager (Note 3) 36,101
Prepaid registration expense 12,705
Prepaid insurance 2,019
-----------
Total Assets 31,417,272
LIABILITIES:
Payable for investment securities purchased --
Dividend payable 108,084
Shareholder services fee payable (Note 3) 6,288
Management fee payable (Note 3) 1,572
Distribution fee payable (Note 3) 480
Payable for open foreign currency contracts (Note 5) --
Other accrued expenses 25,984
-----------
Total Liabilities 142,408
NET ASSETS $31,274,864
Composition of Net Assets:
Par value of shares of beneficial interest $ 3,128
Capital paid in excess of par value 31,271,736
Undistributed net investment income (net investment loss) --
Accumulated net realized gain (loss) --
Net unrealized appreciation (depreciation) of
investments and foreign currency --
NET ASSETS $31,274,864
Class A Shares
Net Assets $30,388,700
Shares Outstanding 30,388,700
Net Asset Value And Redemption Price Per Share $ 1.00
Maximum Offering Price Per Share $ 1.00
Class B Shares
Net Assets $ 63,679
Shares Outstanding 63,679
Net Asset Value Per Share(3) $ 1.00
Class C Shares
Net Assets $ 57,462
Shares Outstanding 57,462
Net Asset Value Per Share(4) $ 1.00
Class X Shares
Net Assets $ 765,023
Shares Outstanding 765,023
Net Asset Value Per Share(3) $ 1.00
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 43
<PAGE> 46
For the period ended April 30, 1999 (unaudited)*
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
ING
ING ING ING LARGE CAP
SMALL CAP FOCUS MID CAP GROWTH
GROWTH FUND FUND GROWTH FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 35,461 $ 54,655 $ 100,978 $ 40,708
Dividend 25,292 69,393 57,830 68,533
Foreign withholding tax -- -- -- --
----------- ----------- ----------- -----------
Total Income 60,753 124,048 158,808 109,241
EXPENSES:
Management fee (Note 3) 100,464 109,340 97,015 88,236
Distribution fee (Note 3) 50,526 55,023 48,635 60,476
Transfer agent (Note 3) 28,572 28,894 27,041 39,012
Shareholder services (Note 3) 25,122 27,335 25,254 29,414
Professional fees 16,350 17,100 16,350 16,350
Fund accounting (Note 3) 16,127 16,127 16,127 16,127
Custodian 7,626 6,652 8,609 8,187
Registration 5,794 5,944 5,793 7,633
Other expenses 6,324 9,373 6,693 7,852
----------- ----------- ----------- -----------
Total expenses 256,905 275,788 251,517 273,287
----------- ----------- ----------- -----------
Expenses waived and reimbursed by Manager and Distributor (Note 3) (120,115) (130,643) (120,095) (116,483)
----------- ----------- ----------- -----------
Net expenses 136,790 145,145 131,422 156,804
NET INVESTMENT INCOME (LOSS) (76,037) (21,097) 27,386 (47,563)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY (NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions (1,750,144) 548,437 (885,800) 58,901
Forward foreign currency contracts -- -- -- --
Foreign currency transactions -- -- -- --
NET REALIZED GAIN (LOSS) (1,750,144) 548,437 (885,800) 58,901
Net increase (decrease) in unrealized appreciation from:
Investments 2,440,739 4,416,895 1,085,738 3,836,409
Foreign Currency -- -- -- --
NET INCREASE (DECREASE) IN UNREALIZED APPRECIATION 2,440,739 4,416,895 1,085,738 3,836,409
Net realized and unrealized gain (loss) on investments
and foreign currency 690,595 4,965,332 199,938 3,895,310
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 614,558 $ 4,944,235 $ 227,324 $ 3,847,747
</TABLE>
<TABLE>
<CAPTION>
ING
TAX EFFICIENT
EQUITY FUND
- --------------------------------------------------------------------------------------
<S> <C>
Interest $ 76,075
Dividend 138,781
Foreign withholding tax --
-----------
Total Income 214,856
EXPENSES:
Management fee (Note 3) 105,267
Distribution fee (Note 3) 68,067
Transfer agent (Note 3) 45,473
Shareholder services (Note 3) 32,896
Professional fees 16,850
Fund accounting (Note 3) 16,127
Custodian 9,501
Registration 9,614
Other expenses 7,876
-----------
Total expenses 311,671
-----------
Expenses waived and reimbursed by Manager and Distributor (Note 3) (143,237)
-----------
Net expenses 168,434
NET INVESTMENT INCOME (LOSS) 46,422
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY (NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions (13,213)
Forward foreign currency contracts --
Foreign currency transactions --
NET REALIZED GAIN (LOSS) (13,213)
Net increase (decrease) in unrealized appreciation from:
Investments 5,332,674
Foreign Currency --
NET INCREASE (DECREASE) IN UNREALIZED APPRECIATION 5,332,674
Net realized and unrealized gain (loss) on investments
and foreign currency 5,319,461
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 5,365,883
</TABLE>
*Commenced operations on December 15, 1998.
See Notes to Financial Statements.
44 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 47
<TABLE>
<CAPTION>
ING ING ING ING
GROWTH & INTERNATIONAL TECHNOLOGY EUROPEAN
INCOME FUND BOND FUND FUND EQUITY FUND
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest $ 29,107 $ 344,661 $ 33,826 $ 1,037
Dividend 137,150 -- 20,904 186,378
Foreign withholding tax -- (9,607) (2,843) (24,247)
----------- ----------- ----------- -----------
Total Income 166,257 335,054 51,887 163,168
EXPENSES:
Management fee (Note 3) 80,538 93,937 148,417 116,683
Distribution fee (Note 3) 54,037 47,304 59,945 51,162
Transfer agent (Note 3) 31,086 31,594 39,802 29,086
Shareholder services (Note 3) 26,846 23,484 29,683 25,365
Professional fees 16,350 17,750 18,350 18,100
Fund accounting (Note 3) 16,127 16,127 16,127 16,127
Custodian 7,711 13,799 13,585 34,071
Registration 6,542 5,964 6,620 5,842
Other expenses 5,975 11,975 12,016 6,843
----------- ----------- ----------- -----------
Total expenses 245,212 261,934 344,545 303,279
----------- ----------- ----------- -----------
Expenses waived and reimbursed by Manager and Distributor (Note 3) (108,174) (121,582) (163,818) (137,548)
----------- ----------- ----------- -----------
Net expenses 137,038 140,352 180,727 165,731
NET INVESTMENT INCOME (LOSS) 29,219 194,702 (128,840) (2,563)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY (NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions 135,976 (911,563) 2,058,856 508,246
Forward foreign currency contracts -- -- -- --
Foreign currency transactions -- 10,533 41,722 25,072
NET REALIZED GAIN (LOSS) 135,976 (901,030) 2,100,578 533,318
Net increase (decrease) in unrealized appreciation from:
Investments 2,588,922 (1,038,389) 3,194,000 1,242,078
Foreign Currency -- (46,715) 1,237 2,770
NET INCREASE (DECREASE) IN UNREALIZED APPRECIATION 2,588,922 (1,085,104) 3,195,237 1,244,848
Net realized and unrealized gain (loss) on investments
and foreign currency 2,724,898 (1,986,134) 5,295,815 1,778,166
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 2,754,117 $(1,791,432) $ 5,166,975 $ 1,775,603
</TABLE>
<TABLE>
<CAPTION>
ING ING ING ING
INTERNATIONAL GLOBAL BRAND HIGH YIELD INTERMEDIATE
EQUITY FUND NAMES FUND BOND FUND BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest $ 53,775 $ 24,469 $ 820,286 $ 612,977
Dividend 143,016 117,801 -- --
Foreign withholding tax (15,931) (5,397) -- --
----------- ----------- ----------- -----------
Total Income 180,860 136,873 820,286 612,977
EXPENSES:
Management fee (Note 3) 124,229 124,318 67,294 53,850
Distribution fee (Note 3) 49,794 65,924 52,484 55,192
Transfer agent (Note 3) 26,609 43,964 30,411 31,317
Shareholder services (Note 3) 24,846 31,080 25,882 26,925
Professional fees 18,100 16,350 17,350 16,500
Fund accounting (Note 3) 16,127 16,127 16,127 16,127
Custodian 24,830 12,899 6,221 4,477
Registration 5,495 8,744 6,149 7,553
Other expenses 6,203 13,292 6,966 7,062
----------- ----------- ----------- -----------
Total expenses 296,233 332,698 228,884 219,003
----------- ----------- ----------- -----------
Expenses waived and reimbursed by Manager and Distributor (Note 3) (137,735) (143,159) (123,991) (112,797)
----------- ----------- ----------- -----------
Net expenses 158,498 189,539 104,893 106,206
NET INVESTMENT INCOME (LOSS) 22,362 (52,666) 715,393 506,771
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY (NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions 400,755 223,239 419,125 (243,148)
Forward foreign currency contracts 6,166 -- -- --
Foreign currency transactions (25,664) (35,878) -- --
NET REALIZED GAIN (LOSS) 381,257 187,361 419,125 (243,148)
Net increase (decrease) in unrealized appreciation from:
Investments 2,627,271 2,561,147 499,789 (432,594)
Foreign Currency 19,023 263 -- --
NET INCREASE (DECREASE) IN UNREALIZED APPRECIATION 2,646,294 2,561,410 499,789 (432,594)
Net realized and unrealized gain (loss) on investments
and foreign currency 3,027,551 2,748,771 918,914 (675,742)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,049,913 $ 2,696,105 $ 1,634,307 $ (168,971)
</TABLE>
<TABLE>
<CAPTION>
ING MONEY
MARKET
FUND
- -----------------------------------------------------------------------------------
<S> <C>
Interest $ 537,975
Dividend --
Foreign withholding tax --
-----------
Total Income 537,975
EXPENSES:
Management fee (Note 3) 26,871
Distribution fee (Note 3) 54,043
Transfer agent (Note 3) 36,300
Shareholder services (Note 3) 26,871
Professional fees 15,650
Fund accounting (Note 3) 16,127
Custodian 7,153
Registration 6,900
Other expenses 7,041
-----------
Total expenses 196,956
-----------
Expenses waived and reimbursed by Manager and Distributor (Note 3) (125,519)
-----------
Net expenses 71,437
NET INVESTMENT INCOME (LOSS) 466,538
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY (NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions --
Forward foreign currency contracts --
Foreign currency transactions --
NET REALIZED GAIN (LOSS) --
Net increase (decrease) in unrealized appreciation from:
Investments --
Foreign Currency --
NET INCREASE (DECREASE) IN UNREALIZED APPRECIATION --
Net realized and unrealized gain (loss) on investments
and foreign currency --
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 466,538
</TABLE>
ING Funds Semi-Annual Report/April 30, 1999 45
<PAGE> 48
For the period ended April 30, 1999 (unaudited)*
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ING ING ING ING
Small Cap Focus Mid Cap Large Cap
Growth Fund Fund Growth Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $ (76,037) $ (21,097) $ 27,386 $ (47,563)
Net realized gain (loss) on investments and foreign currency (1,750,144) 548,437 (885,800) 58,901
Net change in unrealized appreciation (depreciation) 2,440,739 4,416,895 1,085,738 3,836,409
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 614,558 4,944,235 227,324 3,847,747
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares -- -- -- --
Class B shares -- -- -- --
Class C shares -- -- -- --
Class X shares -- -- -- --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS PAID -- -- -- --
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 25,923,160 25,835,627 26,328,762 29,260,006
Class B shares 398,626 716,484 126,198 860,482
Class C shares 50,118 116,842 25,948 534,820
Class X shares 321,583 546,518 193,618 2,819,996
------------ ------------ ------------ ------------
26,693,487 27,215,471 26,674,526 33,475,304
Dividend reinvestments
Class A shares -- -- -- --
Class B shares -- -- -- --
Class C shares -- -- -- --
Class X shares -- -- -- --
------------ ------------ ------------ ------------
-- -- -- --
Cost of shares repurchased
Class A shares (46,693) (4,007) (32,581) (172,349)
Class B shares (1,046) -- -- (233)
Class C shares -- -- -- (110)
Class X shares -- (2,351) (106) (18,238)
------------ ------------ ------------ ------------
(47,739) (6,358) (32,687) (190,930)
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 26,645,748 27,209,113 26,641,839 33,284,374
INCREASE IN NET ASSETS 27,260,306 32,153,348 26,869,163 37,132,121
NET ASSETS:
Beginning of period 7,143 7,143 7,143 7,143
END OF PERIOD $ 27,267,449 $ 32,160,491 $ 26,876,306 $ 37,139,264
</TABLE>
<TABLE>
<CAPTION>
ING
Tax Efficient
Equity Fund
- ----------------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $ 46,422
Net realized gain (loss) on investments and foreign currency (13,213)
Net change in unrealized appreciation (depreciation) 5,332,674
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 5,365,883
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares --
Class B shares --
Class C shares --
Class X shares --
------------
TOTAL DISTRIBUTIONS PAID --
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 35,126,191
Class B shares 2,993,330
Class C shares 160,081
Class X shares 2,437,953
------------
40,717,555
Dividend reinvestments
Class A shares --
Class B shares --
Class C shares --
Class X shares --
------------
--
Cost of shares repurchased
Class A shares (241,414)
Class B shares (24,966)
Class C shares --
Class X shares (43,018)
------------
(309,398)
------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 40,408,157
INCREASE IN NET ASSETS 45,774,040
NET ASSETS:
Beginning of period 7,143
END OF PERIOD $ 45,781,183
</TABLE>
*Commenced operations on December 15, 1998.
See Notes to Financial Statements.
46 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 49
<TABLE>
<CAPTION>
ING Global
ING ING Information ING
Growth & International Technology European
Income Fund Bond Fund Fund Equity Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $ 29,219 $ 194,702 $ (128,840) $ (2,563)
Net realized gain (loss) on investments and foreign currency 135,976 (901,030) 2,100,578 533,318
Net change in unrealized appreciation (depreciation) 2,588,922 (1,085,104) 3,195,237 1,244,848
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 2,754,117 (1,791,432) 5,166,975 1,775,603
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (31,465) (197,813) -- --
Class B shares (403) (616) -- --
Class C shares -- (14) -- --
Class X shares (616) (1,019) -- --
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS PAID (32,484) (199,462) -- --
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 28,412,917 26,187,852 27,758,422 25,883,003
Class B shares 274,388 355,214 917,593 498,759
Class C shares 12,159 2,500 41,363 17,403
Class X shares 713,104 636,990 982,263 531,918
------------ ------------ ------------ ------------
29,412,568 27,182,556 29,699,641 26,931,083
Dividend reinvestments
Class A shares 31,375 160,974 -- --
Class B shares 388 144 -- --
Class C shares -- 10 -- --
Class X shares 616 494 -- --
------------ ------------ ------------ ------------
32,379 161,622 -- --
Cost of shares repurchased
Class A shares (54,020) (55,551) (6,254) (88,564)
Class B shares (2,826) (466) (12,302) (596)
Class C shares -- -- -- --
Class X shares (27,309) (8,653) (40,664) --
------------ ------------ ------------ ------------
(84,155) (64,670) (59,220) (89,160)
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 29,360,792 27,279,508 29,640,421 26,841,923
INCREASE IN NET ASSETS 32,082,425 25,288,614 34,807,396 28,617,526
NET ASSETS:
Beginning of period 7,143 7,143 7,143 7,143
s
END OF PERIOD $ 32,089,568 $ 25,295,757 $ 34,814,539 $ 28,624,669
</TABLE>
<TABLE>
<CAPTION>
ING ING ING ING
International Global Brand High Yield Intermediate
Equity Fund Names Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $ 22,362 $ (52,666) $ 715,393 $ 506,771
Net realized gain (loss) on investments and foreign currency 381,257 187,361 419,125 (243,148)
Net change in unrealized appreciation (depreciation) 2,646,294 2,561,410 499,789 (432,594)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,049,913 2,696,105 1,634,307 (168,971)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares -- -- (696,744) (483,774)
Class B shares -- -- (11,065) (10,725)
Class C shares -- -- (2,908) (4,305)
Class X shares -- -- (4,676) (7,967)
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS PAID -- -- (715,393) (506,771)
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 25,325,858 28,879,261 27,426,447 32,093,501
Class B shares 141,565 701,812 1,172,412 1,713,369
Class C shares 18,900 6,724,776 235,711 429,013
Class X shares 109,335 1,258,901 433,859 1,493,675
------------ ------------ ------------ ------------
25,595,658 37,564,750 29,268,429 35,729,558
Dividend reinvestments
Class A shares -- -- 518,153 359,734
Class B shares -- -- 2,036 5,391
Class C shares -- -- 1,831 2,896
Class X shares -- -- 2,483 3,989
------------ ------------ ------------ ------------
-- -- 524,503 372,010
Cost of shares repurchased
Class A shares (313) (255,969) (84,501) (787,943)
Class B shares (466) (12,628) (6,166) (127,786)
Class C shares -- -- (3,275) --
Class X shares -- (13,680) -- (435,656)
------------ ------------ ------------ ------------
(779) (282,277) (93,942) (1,351,385)
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 25,594,879 37,282,473 29,698,990 34,750,183
INCREASE IN NET ASSETS 28,644,792 39,978,578 30,617,904 34,074,441
NET ASSETS:
Beginning of period 7,143 7,143 7,143 7,143
END OF PERIOD $ 28,651,935 $ 39,985,721 $ 30,625,047 $ 34,081,584
</TABLE>
<TABLE>
<CAPTION>
ING Money
Market
Fund
- ----------------------------------------------------------------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $ 466,538
Net realized gain (loss) on investments and foreign currency --
Net change in unrealized appreciation (depreciation) --
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 466,538
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (462,292)
Class B shares (373)
Class C shares (226)
Class X shares (3,647)
------------
TOTAL DISTRIBUTIONS PAID (466,538)
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 37,057,997
Class B shares 66,084
Class C shares 60,307
Class X shares 970,399
------------
38,154,787
Dividend reinvestments
Class A shares 353,717
Class B shares 214
Class C shares 95
Class X shares 1,749
------------
355,775
Cost of shares repurchased
Class A shares (7,025,395)
Class B shares (5,000)
Class C shares (5,321)
Class X shares (207,125)
------------
(7,242,841)
------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 31,267,721
INCREASE IN NET ASSETS 31,267,721
NET ASSETS:
Beginning of period 7,143
END OF PERIOD $ 31,274,864
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 47
<PAGE> 50
April 30, 1999 (unaudited)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ING Funds Trust (the "Trust") was organized as a Delaware business trust on
July 30, 1998 and is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended (the "Investment
Company Act"), as an open-end management investment company. The Trust
consists of twenty investment portfolios (each, a "Fund" and, collectively,
the "Funds"): the ING U.S. Treasury Money Market Fund, ING Money Market
Fund, ING Intermediate Bond Fund, ING High Yield Bond Fund, ING
International Bond Fund, ING Mortgage Income Fund, ING National Tax-Exempt
Bond Fund, ING Large Cap Growth Fund, ING Growth & Income Fund, ING Mid Cap
Growth Fund, ING Small Cap Growth Fund, ING Balanced Fund, ING Global Brand
Names Fund, ING International Equity Fund, ING Emerging Markets Equity Fund,
ING European Equity Fund, ING Tax Efficient Equity Fund, ING Focus Fund, ING
Global Information Technology Fund and ING Global Real Estate Fund. Each
Fund, except the ING National Tax-Exempt Bond Fund, offers four classes of
shares, which have been designated as Class A, B, C, and X shares. The ING
National Tax-Exempt Bond Fund offers only Class A, B and C shares. The
Funds, except for the ING U.S. Treasury Money Market Fund, ING Mortgage
Income Fund, ING National Tax-Exempt Bond Fund, ING Balanced Fund, ING
Emerging Markets Equity Fund, and ING Global Real Estate Fund, commenced
operations on December 15, 1998.
2. SIGNIFICANT ACCOUNTING POLICIES
The Funds' financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
SECURITY VALUATION Securities listed on an exchange or trading in the
over-the-counter market are valued on the basis of the last sale prior to
the time the valuation is made. If there has been no sale since the
immediately previous valuation, then the average of the last bid and asked
prices is used. Quotations are taken from the exchange where the security is
primarily traded. Portfolio securities which are primarily traded on foreign
exchanges are generally valued at the preceding closing values of such
securities on their respective exchanges, except that when an occurrence
subsequent to the time a foreign security is valued is likely to have
changed such value, then the fair value of those securities will be
determined by consideration of other factors by or under the direction of
the Board of Trustees. Securities for which market quotations are not
readily available are valued at the fair value as determined in good faith
by or at the direction of the Board of Trustees. Bonds and other fixed
income securities are valued by using market quotations and may be valued on
the basis of prices provided by a pricing service approved by the Board of
Trustees. The amortized cost method of valuation is used with respect to
debt obligations with 60 days or less remaining to maturity, unless this
method does not represent fair value.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME Investment transactions are
recorded on trade date. Realized gains and losses from security and foreign
currency transactions are calculated on the identified cost basis. Dividend
income is recorded on the ex-dividend date. Interest income is recorded on
an accrual basis. Discounts and premiums are treated as adjustments to
interest income and identified costs of investments over the lives of the
respective investments.
FOREIGN CURRENCY TRANSLATION The books and records of the Funds are
maintained in U.S. dollars as follows: (1) the foreign currency market value
of investment securities and other assets and liabilities stated in foreign
currencies are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
rate of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate the portion of operations resulting from changes in
foreign exchange rates on investments from the fluctuations arising from
changes in market prices of foreign securities held. Such fluctuations are
included in net realized and unrealized gain or loss from investments. Net
realized exchange gain or loss from foreign currency transactions represent
net foreign exchange gain or loss from forward foreign currency contracts,
deposition of foreign currencies, currency gain or loss realized between the
trade and settlement dates on security transactions, and the difference
between the amount of net investment income recorded on the Funds'
accounting records and the U.S. dollar equivalent amounts actually received
or paid. Net unrealized foreign exchange gain or loss arises from changes in
value of assets and liabilities, other than investments in securities, as a
result of changes in exchange rates.
48 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 51
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds, except the ING Money Market Fund, are permitted to enter into
forward foreign currency exchange contracts solely for purposes of
protecting against adverse changes in foreign currency exchange rates. A
forward foreign currency exchange contract involves an obligation to
purchase or sell a specific currency at a future date. These contracts are
marked to market daily, by recognizing the difference between the contract
exchange rate and the current market rate as an unrealized gain or loss.
Realized gains or losses are recognized when the contracts are settled. When
a Fund enters into a forward foreign currency exchange contract to buy a
foreign currency, it will place cash or readily marketable securities in a
segregated account in an amount equal to the value of its total assets
committed to the consummation of the forward contract. If the value of the
securities placed in the segregated account declines, additional cash or
securities will be placed in the account so that the value of the account
will be equal to the amount of the Fund's commitment with respect to the
contract.
Risks may arise from forward foreign currency exchange contracts with
respect to the potential inability of counterparties to meet the terms of
their contracts. A forward foreign currency exchange contract may also limit
any potential gain which might result should the value of such currency
increase.
U.S. FEDERAL TAX STATUS Each Fund intends to distribute substantially all of
its taxable income and to comply with the other requirements of the Internal
Revenue Code of 1986, as amended, applicable to regulated investment
companies. Accordingly, no provision for U.S. Federal income taxes is
required. In addition, by distributing during each calendar year
substantially all of its ordinary income and capital gains, if any, each
Fund intends not to be subject to U.S. Federal excise tax.
FOREIGN WITHHOLDING TAXES Income received from sources outside of the United
States may be subject to withholding and other taxes imposed by countries
other than the United States.
DIVIDENDS AND DISTRIBUTIONS The ING Money Market Fund, ING Intermediate Bond
Fund, ING High Yield Bond Fund and ING International Bond Fund declare
dividends daily from net investment income. Dividends are paid monthly,
generally on the last business day of each month. Substantially all of the
net investment income of the ING Growth & Income Fund is distributed in the
form of quarterly dividends to shareholders. The ING Large Cap Growth Fund,
ING Mid Cap Growth Fund, ING Small Cap Growth Fund, ING Global Brand Names
Fund, ING International Equity Fund, ING European Equity Fund, ING Tax
Efficient Equity Fund, ING Focus Fund and ING Global Information Technology
Fund declare and pay dividends annually from substantially all of the Funds'
net investment income. Distribution of net realized gains, if any, will be
declared and paid at least annually by each Fund.
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles.
EXPENSES Expenses directly attributable to a Fund and a specific class are
charged to that Fund or class, other expenses are allocated proportionately
among each Fund within the Trust in relation to the net assets of each Fund,
or on another reasonable basis.
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES MANAGER AND SUB-ADVISERS
ING Mutual Funds Management Co. LLC (the "Manager"), a wholly-owned indirect
subsidiary of ING Groep, N.V. ("ING Group"), serves as the manager of the
Funds pursuant to a Management Agreement with the Trust. The Trust pays the
Manager for its services under the Management Agreement a fee, payable
monthly, based on an annual rate of the average daily net assets of each
Fund. The Manager has entered into Sub-Advisory Agreements with Baring Asset
Management, Inc., Baring International Investment Ltd., Baring International
Investment (Far East) Ltd., Delta Asset Management, Furman Selz Capital
Management LLC, ING Investment Management Advisors B.V. and ING Investment
Management LLC (the
ING Funds Semi-Annual Report / April 30, 1999 49
<PAGE> 52
April 30, 1999 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
"Sub-Advisers"). The Sub-Advisers are wholly-owned indirect subsidiaries of
ING Group. Under the Sub-Advisory Agreements, the Sub-Advisers have full
investment discretion and make all determinations with respect to the
investment of a Fund's assets and the purchase and sale of portfolio
securities and other investments. Pursuant to the Sub-Advisory Agreements,
the Manager pays to the Sub-Advisers a monthly fee based on an annual rate
of the average daily net assets of each Fund. The applicable management fee,
sub-advisory fee, and the Sub-Adviser for each Fund are indicated below:
<TABLE>
<CAPTION>
FUND NAME SUB-ADVISER MANAGEMENT FEE SUB-ADVISORY FEE
<S> <C> <C> <C>
ING Small Cap Growth Fund Baring Asset Management, Inc. 1.00% 0.500%
ING Focus Fund Furman Selz Capital Management LLC 1.00 0.500
ING Mid Cap Growth Fund Furman Selz Capital Management LLC 1.00 0.500
ING Large Cap Growth Fund Baring Asset Management, Inc. 0.75 0.375
ING Tax Efficient Equity Fund Delta Asset Management 0.80 0.400
ING Growth & Income Fund ING Investment Management LLC 0.75 0.375
ING International Bond Fund Baring International Investment Ltd. 1.00 0.500
ING Global Information Technology Fund ING Investment Management Advisors B.V. 1.25 0.625
ING European Equity Fund ING Investment Management Advisors B.V. 1.15 0.575
ING International Equity Fund Baring International Investment Ltd. 1.25 0.625
ING Global Brand Names Fund ING Investment Management Advisors B.V. 1.00 0.500
ING High Yield Bond Fund ING Investment Management LLC 0.65 0.325
ING Intermediate Bond Fund ING Investment Management LLC 0.50 0.250
ING Money Market Fund ING Investment Management LLC 0.25 0.125
</TABLE>
For the period ended April 30, 1999, the Manager and the Sub-Advisers
voluntarily waived management and sub-advisory fees as indicated below:
<TABLE>
<CAPTION>
MANAGEMENT SUB-ADVISORY
FUND NAME FEE WAIVED FEE WAIVED
<S> <C> <C>
ING Small Cap Growth Fund $ 75,348 $37,674
ING Focus Fund 82,004 41,002
ING Mid Cap Growth Fund 72,762 36,381
ING Large Cap Growth Fund 66,176 33,088
ING Tax Efficient Equity Fund 78,950 39,475
ING Growth & Income Fund 60,404 30,202
ING International Bond Fund 70,452 35,226
ING Global Informational Technology Fund 111,312 55,656
ING European Equity Fund 87,512 43,756
ING International Equity Fund 93,172 46,586
ING Global Brand Names Fund 93,238 46,619
ING High Yield Bond Fund 50,470 25,235
ING Intermediate Bond Fund 40,388 20,194
ING Money Market Fund 20,154 10,077
</TABLE>
In addition, for the period ended April 30, 1999, the Manager has agreed to
reimburse expenses amounting to $36,101 for ING Money Market Fund, $5,087
for ING Intermediate Bond Fund, $7,666 for ING High Yield Bond Fund, $3,881
for ING Mid Cap Growth Fund, $5,069 for ING European Equity Fund, and $8,713
for ING Tax Efficient Equity Fund.
DISTRIBUTION PLAN AND SHAREHOLDER SERVICING PLAN The Trust, on behalf of the
Funds, has adopted a Plan of Distribution pursuant to Rule 12b-1 under the
Investment Company Act. Each Fund pays ING Funds Distributor, Inc. (the
"Distributor") monthly, based on an annual rate of up to 0.50% of average
daily net assets attributable to the Funds' Class A shares and 0.75% of
average daily net assets attributable to the Funds' Class B, C, and X
shares. The distribution fee for all classes may be used by the Distributor
for the purpose of financing any activity which is primarily intended to
result in the sale of shares of the applicable Fund.
The Funds have adopted a Shareholder Servicing Plan pursuant to which each
may pay a service fee up to an annual rate of 0.25% of a Fund's average
daily net assets to various banks, trust companies, broker-dealers or other
financial organizations including the Manager and its affiliates.
50 ING Funds Semi-Annual Report; / April 30, 1999
<PAGE> 53
For the period ended April 30, 1999, the Distributor voluntarily waived part
of the distribution fees. The distribution fees to which the Distributor was
entitled, the distribution fees waived, and the shareholder servicing fees
are indicated below:
<TABLE>
<CAPTION>
DISTRIBUTION FEES DISTRIBUTION FEES SHAREHOLDER SERVICING
FUND NAME ENTITLED WAIVED FEES
<S> <C> <C> <C>
ING Small Cap Growth Fund $50,526 $39,743 $25,122
ING Focus Fund 55,023 43,171 27,335
ING Mid Cap Growth Fund 48,635 39,602 25,254
ING Large Cap Growth Fund 60,476 44,423 29,414
ING Tax Efficient Equity Fund 68,067 48,994 32,896
ING Growth & Income Fund 54,037 42,401 26,846
ING International Bond Fund 47,304 37,038 23,484
ING Global Information Technology Fund 59,945 46,568 29,683
ING European Equity Fund 51,162 39,894 25,365
ING International Equity Fund 49,794 39,594 24,846
ING Global Brand Names Fund 65,924 43,704 31,080
ING High Yield Bond Fund 52,484 50,325 25,882
ING Intermediate Bond Fund 55,192 51,167 26,925
ING Money Market Fund 54,043 53,142 26,871
</TABLE>
In addition, the Distributor collects sales charges imposed on sales of each
Fund's Class A shares, except for the ING Money Market Fund, and reallows a
portion of such charges to dealers through which the sales are made. There
is also a contingent deferred sales charge ("CDSC") on Class B, C and X
shares, which applies if redemption occurs within six years of purchase for
the Class B and X shares and within one year of purchase for the Class C
shares. Class A share purchases equal to or exceeding $1,000,000 in the
aggregate, which did not incur an initial sales charge, are subject to a
1.00% CDSC if redeemed within one year of purchase.
For the period ended April 30, 1999, sales charges and CDSC's paid to the
Distributor were approximately:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS B SHARES CLASS C SHARES CLASS X SHARES
FUND NAME SALES CHARGES CDSC CDSC CDSC
<S> <C> <C> <C> <C>
ING Small Cap Growth Fund $ 14,042 $ 40 -- --
ING Focus Fund 22,589 1,284 -- --
ING Mid Cap Growth Fund 23,978 -- -- $1
ING Large Cap Growth Fund 66,684 11 $ 1 --
ING Tax Efficient Equity Fund 123,630 196 -- --
ING Growth & Income Fund 36,365 36 -- --
ING International Bond Fund 9,634 12 -- --
ING Global Information Technology Fund 89,852 100 -- --
ING European Equity Fund 12,726 29 -- --
ING International Equity Fund 9,068 12 -- --
ING Global Brand Names Fund 60,897 131 -- 2
ING High Yield Bond Fund 33,717 12 30 --
ING Intermediate Bond Fund 76,410 198 -- 1
ING Money Market Fund -- 43 -- --
</TABLE>
OTHER TRANSACTIONS WITH AFFILIATES ING Fund Services Co. LLC ("ING Fund
Services") has entered into a Fund Services Agreement with the Funds
pursuant to which ING Fund Services will perform or engage third parties to
perform transfer agency, fund accounting, account services and other
services. Under the Fund Services Agreement, each Fund may pay ING Fund
Services up to $40,000 for fund accounting services plus out of pocket
expenses, $17 per account for transfer agent services plus out of pocket
expenses and up to 0.25% of each Fund's average daily net assets annually
for account servicing activities.
All officers and one trustee of the Trust are employees of the Manager.
ING Funds Semi-Annual Report / April 30, 1999 51
<PAGE> 54
April 30, 1999 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
4. INVESTMENTS IN SECURITIES
For the period ended April 30, 1999, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) and the aggregate gross unrealized appreciation and
depreciation of investments for U.S. Federal income tax purpose were as
follows:
<TABLE>
<CAPTION>
NET APPRECIATION/
FUND NAME PURCHASES SALES APPRECIATION DEPRECIATION (DEPRECIATION)
<S> <C> <C> <C> <C> <C>
ING Small Cap Growth Fund $38,882,612 $12,977,158 $3,219,813 $ 779,074 $ 2,440,739
ING Focus Fund 33,412,653 9,403,205 4,966,079 549,184 4,416,895
ING Mid Cap Growth Fund 28,135,734 2,448,740 2,571,459 1,485,721 1,085,738
ING Large Cap Growth Fund 36,662,113 4,247,572 4,424,977 588,568 3,836,409
ING Tax Efficient Equity Fund 35,563,111 505,179 6,142,783 810,109 5,332,674
ING Growth & Income Fund 30,865,729 2,735,302 3,878,419 1,289,497 2,588,922
ING International Bond Fund 37,855,156 14,089,202 271,620 1,310,009 (1,038,389)
ING Global Information Technology
Fund 38,194,284 10,575,829 5,405,590 2,211,590 3,194,000
ING European Equity Fund 36,697,583 9,779,008 2,492,311 1,250,233 1,242,078
ING International Equity Fund 35,165,230 10,788,936 3,384,092 756,821 2,627,271
ING Global Brand Names Fund 38,213,942 2,098,692 4,362,825 1,801,678 2,561,147
ING High Yield Bond Fund 97,597,980 69,453,190 590,334 90,545 499,789
ING Intermediate Bond Fund 72,492,057 39,610,939 47,634 480,228 (432,594)
</TABLE>
5. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 1999, the ING International Bond Fund, ING International Equity
Fund, ING European Equity Fund and ING Global Information Technology Fund
had open forward foreign currency contracts as described below. The Fund
bears the market risk that arises from changes in foreign currency exchange
rates. The unrealized gain (loss) on the contracts reflected in the
accompanying financial statements were as follows:
ING INTERNATIONAL BOND FUND
<TABLE>
<CAPTION>
LOCAL MARKET SETTLEMENT UNREALIZED
CURRENCY COST VALUE DATE GAIN
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
Australian Dollar 1,620,120 $1,067,578 $1,072,114 5/7/1999 $ 4,536
-----------------------------------------------------------------------------------------------------------------------
TO SELL:
Japanese Yen 129,979,850 $1,092,314 $1,087,881 5/7/1999 $ 4,433
-----------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on
forward foreign currency contracts $ 8,969
---------
</TABLE>
<TABLE>
<CAPTION>
ING INTERNATIONAL EQUITY FUND LOCAL MARKET SETTLEMENT UNREALIZED
CURRENCY COST VALUE DATE GAIN (LOSS)
<S> <C> <C> <C> <C> <C>
TO SELL:
Australian Dollar 1,126,000 $ 720,415 $ 745,169 5/26/1999 $(24,754)
British Pound 14,902 24,029 23,973 5/3/1999 56
Japanese Yen 236,433,000 2,041,736 1,995,339 6/24/1999 46,397
---------- ---------- --------
$2,786,180 $2,764,481 $ 21,699
------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on
forward foreign currency contracts $ 46,453
--------
Gross unrealized depreciation on
forward foreign currency contracts $(24,754)
--------
</TABLE>
<TABLE>
<CAPTION>
ING EUROPEAN EQUITY FUND LOCAL MARKET SETTLEMENT UNREALIZED
CURRENCY COST VALUE DATE LOSS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
British Pound 40,136 $ 64,980 $064,566 5/4/1999 $ (414)
EURO 20,257 21,452 21,404 5/4/1999 (48)
EURO 20,651 21,870 21,820 5/28/1999 (50)
-------- --------
$108,302 $107,790
------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on
forward foreign currency contracts $ (512)
--------
</TABLE>
52 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 55
ING GLOBAL INFORMATION TECHNOLOGY FUND
<TABLE>
<CAPTION>
LOCAL MARKET SETTLEMENT UNREALIZED
CURRENCY COST VALUE DATE GAIN (LOSS)
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------
TO BUY:
British Pound 13,050 $ 21,128 $ 20,994 5/4/1999 $(134)
EURO 48,096 51,342 50,818 5/3/1999 (524)
Japanese Yen 37,410,637 313,243 313,322 5/6/1999 79
------- ------- -----
$385,713 $385,134 $(579)
---------------------------------------------------------------------------------------------------------------------
TO SELL:
EURO 16,366 $ 17,331 $ 17,292 5/28/1999 $ 39
---------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation
on forward foreign currency
contracts $ 118
-----
Gross unrealized depreciation
on forward foreign currency
contracts $(658)
-----
</TABLE>
6. CONCENTRATION OF RISKS
HIGH YIELD BOND MARKET The ING Intermediate Bond Fund and ING High Yield
Bond Fund may invest in high yield, high risk debt securities. Lower-rated
debt securities possess speculative characteristics and are subject to
greater market fluctuations and risk of loss of income and principal than
higher-rated debt securities for a variety of reasons. Also, during an
economic downturn or substantial period of rising interest rates, highly
leveraged issuers may experience financial stress which would adversely
affect their ability to service their principal and interest payment
obligations, to meet projected business goals and to obtain additional
financing. In addition, periods of economic uncertainty and changes can be
expected to result in increased volatility of market prices of lower-rated
debt securities.
FOREIGN SECURITIES The Funds, except the ING Money Market Fund, may invest
in foreign securities. Investments in foreign securities may entail risks
not present in domestic investments. Since investments of securities 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. Foreign investments may also
subject the Funds to foreign government exchange restrictions,
expropriation, taxation or other political, social or economic developments,
as well as from movements in currency, security value and interest rate, all
of which could affect the market and/or credit risk of the investments.
NON-DIVERSIFIED The ING International Bond Fund, ING Global Brand Names Fund
and ING Focus Fund are classified as non-diversified investment companies
under the Investment Company Act, which means that each Fund is not limited
in the proportion of its assets in a single issuer. The investment of a
large percentage of a Fund's assets in the securities of a small number of
issuers may cause that Fund's share price to fluctuate more than that of a
diversified investment company.
INDUSTRY CONCENTRATION The ING Global Information Technology Fund
concentrates its assets in securities related to a particular industry. As a
result, the Fund may be subject to greater market fluctuation than a fund
which has securities representing a broader range of investment
alternatives.
7. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with U.S. banks or
broker/dealers. A repurchase agreement is a transaction in which the seller
of a security commits itself at the time of the sale to repurchase that
security from the buyer at a mutually agreed upon time and price. The Funds
will always receive and maintain securities as collateral whose market
value, including accrued interest, will equal or exceed the repurchase
price.
ING Funds Semi-Annual Report / April 30, 1999 53
<PAGE> 56
April 30, 1999 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
8. SHARES OF BENEFICIAL INTEREST
At April 30, 1999, the Trust had an unlimited number of shares of
beneficial interest authorized with a par value of $0.001 per share.
The Funds have the ability to issue multiple classes of shares. Each
share of a class represents an identical legal interest in a Fund and
has the same rights, except that each class bears certain expenses
specifically related to the distribution of its shares.
At April 30, 1999, total paid-in capital amounted to the following for
each Fund:
<TABLE>
<CAPTION>
Fund Name Class A Shares Class B Shares Class C Shares Class X Shares
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ING Small Cap Growth Fund $25,878,848 $ 399,961 $ 52,499 $ 321,583
ING Focus Fund 25,834,001 718,865 119,223 544,167
ING Mid Cap Growth Fund 26,298,562 128,579 28,329 193,512
ING Large Cap Growth Fund 29,090,038 862,630 537,091 2,801,758
ING Tax Efficient Equity Fund 34,887,158 2,970,745 162,462 2,394,935
ING Growth & Income Fund 28,392,653 274,331 14,540 686,411
ING International Bond Fund 26,295,656 357,273 4,891 628,831
ING Global Information Technology Fund 27,754,549 907,672 43,744 941,599
ING European Equity Fund 25,796,820 500,544 19,784 531,918
ING International Equity Fund 25,327,926 143,480 21,281 109,335
ING Global Brand Names Fund 28,625,673 691,565 6,727,157 1,245,221
ING High Yield Bond Fund 27,862,480 1,170,663 236,648 436,342
ING Intermediate Bond Fund 31,667,673 1,593,355 434,290 1,062,008
ING Money Market Fund 30,388,700 63,679 57,462 765,023
</TABLE>
54 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 57
Transactions in shares for the period ended April 30, 1999 were as follows:
<TABLE>
<CAPTION>
Shares Amount
- ------------------------------------------------------------------------
<S> <C> <C>
ING SMALL CAP GROWTH FUND
Class A Shares(1)
Shares sold 2,587,347 $ 25,923,160
Shares issued on reinvestment -- --
Shares redeemed (4,502) (46,693)
------------ ------------
Net increase 2,582,845 $ 25,876,467
------------ ------------
Class B Shares(1)
Shares sold 38,526 $ 398,626
Shares issued on reinvestment -- --
Shares redeemed (104) (1,046)
------------ ------------
Net increase 38,422 $ 397,580
------------ ------------
Class C Shares(1)
Shares sold 4,963 $ 50,118
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 4,963 $ 50,118
------------ ------------
Class X Shares(2)
Shares sold 31,435 $ 321,583
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 31,435 $ 321,583
------------ ------------
ING FOCUS FUND
Class A Shares(1)
Shares sold 2,571,626 $ 25,835,627
Shares issued on reinvestment -- --
Shares redeemed (333) (4,007)
------------ ------------
Net increase 2,571,293 $ 25,831,620
------------ ------------
Class B Shares(1)
Shares sold 61,010 $ 716,484
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 61,010 $ 716,484
------------ ------------
Class C Shares(1)
Shares sold 9,848 $ 116,842
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 9,848 $ 116,842
------------ ------------
Class X Shares(3)
Shares sold 47,561 $ 546,518
Shares issued on reinvestment -- --
Shares redeemed (198) (2,351)
------------ ------------
Net increase 47,363 $ 544,167
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Shares Amount
- ------------------------------------------------------------------------
<S> <C> <C>
ING MID CAP GROWTH FUND
Class A Shares(1)
Shares sold 2,631,837 $ 26,328,762
Shares issued on reinvestment -- --
Shares redeemed (3,390) (32,581)
------------ ------------
Net increase 2,628,447 $ 26,296,181
------------ ------------
Class B Shares(1)
Shares sold 12,870 $ 126,198
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 12,870 $ 126,198
------------ ------------
Class C Shares(1)
Shares sold 2,684 $ 25,948
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 2,684 $ 25,948
------------ ------------
Class X Shares(4)
Shares sold 19,720 $ 193,618
Shares issued on reinvestment -- --
Shares redeemed (11) (106)
------------ ------------
Net increase 19,709 $ 193,512
------------ ------------
ING LARGE CAP GROWTH FUND
Class A Shares(1)
Shares sold 2,886,675 $ 29,260,006
Shares issued on reinvestment -- --
Shares redeemed (16,223) (172,349)
------------ ------------
Net increase 2,870,452 $ 29,087,657
------------ ------------
Class B Shares(1)
Shares sold 77,690 $ 860,482
Shares issued on reinvestment -- --
Shares redeemed (20) (233)
------------ ------------
Net increase 77,670 $ 860,249
------------ ------------
Class C Shares(1)
Shares sold 47,935 $ 534,820
Shares issued on reinvestment -- --
Shares redeemed (10) (110)
------------ ------------
Net increase 47,925 $ 534,710
------------ ------------
Class X Shares(2)
Shares sold 254,237 $ 2,819,996
Shares issued on reinvestment -- --
Shares redeemed (1,559) (18,238)
------------ ------------
Net increase 252,678 $ 2,801,758
------------ ------------
</TABLE>
ING Funds Semi-Annual Report / April 30, 1999 55
<PAGE> 58
April 30, 1999 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
Transactions in shares for the period ended April 30, 1999 were as follows:
<TABLE>
<CAPTION>
Shares Amount
- ------------------------------------------------------------------------
<S> <C> <C>
ING TAX EFFICIENT EQUITY FUND
Class A Shares(1)
Shares sold 3,424,531 $ 35,126,191
Shares issued on reinvestment -- --
Shares redeemed (21,962) (241,414)
------------ ------------
Net increase 3,402,569 $ 34,884,777
------------ ------------
Class B Shares(1)
Shares sold 271,946 $ 2,993,330
Shares issued on reinvestment -- --
Shares redeemed (2,285) (24,966)
------------ ------------
Net increase 269,661 $ 2,968,364
------------ ------------
Class C Shares(1)
Shares sold 13,659 $ 160,081
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 13,659 $ 160,081
------------ ------------
Class X Shares(2)
Shares sold 222,043 $ 2,437,953
Shares issued on reinvestment -- --
Shares redeemed (3,766) (43,018)
------------ ------------
Net increase 218,277 $ 2,394,935
------------ ------------
ING GROWTH & INCOME FUND
Class A Shares(1)
Shares sold 2,817,014 $ 28,412,917
Shares issued on reinvestment 2,919 31,375
Shares redeemed (4,924) (54,020)
------------ ------------
Net increase 2,815,009 $ 28,390,272
------------ ------------
Class B Shares(1)
Shares sold 25,567 $ 274,388
Shares issued on reinvestment 36 388
Shares redeemed (258) (2,826)
------------ ------------
Net increase 25,345 $ 271,950
------------ ------------
Class C Shares(1)
Shares sold 1,089 $ 12,159
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 1,089 $ 12,159
------------ ------------
Class X Shares(3)
Shares sold 66,495 $ 713,104
Shares issued on reinvestment 57 616
Shares redeemed (2,443) (27,309)
------------ ------------
Net increase 64,109 $ 686,411
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
Shares Amount
- -----------------------------------------------------------------------------
<S> <C> <C>
ING INTERNATIONAL BOND FUND
Class A Shares(1)
Shares sold 2,623,036 $ 26,187,852
Shares issued on reinvestment 16,741 160,974
Shares redeemed (5,739) (55,551)
------------ ------------
Net increase 2,634,038 $ 26,293,275
------------ ------------
Class B Shares(1)
Shares sold 37,459 $ 355,214
Shares issued on reinvestment 15 144
Shares redeemed (50) (466)
------------ ------------
Net increase 37,424 $ 354,892
------------ ------------
Class C Shares(1)
Shares sold 267 $ 2,500
Shares issued on reinvestment 1 10
Shares redeemed -- --
------------ ------------
Net increase 268 $ 2,510
------------ ------------
Class X Shares(2)
Shares sold 67,648 $ 636,990
Shares issued on reinvestment 53 494
Shares redeemed (929) (8,653)
------------ ------------
Net increase 66,772 $ 628,831
------------ ------------
ING GLOBAL INFORMATION TECHNOLOGY FUND
Class A Shares(1)
Shares sold 2,729,059 $ 27,758,422
Shares issued on reinvestment -- --
Shares redeemed (506) (6,254)
------------ ------------
Net increase 2,728,553 $ 27,752,168
------------ ------------
Class B Shares(1)
Shares sold 75,415 $ 917,593
Shares issued on reinvestment -- --
Shares redeemed (994) (12,302)
------------ ------------
Net increase 74,421 $ 905,291
------------ ------------
Class C Shares(1)
Shares sold 3,404 $ 41,363
Shares issued on reinvestment -- --
Shares redeemed -- --
------------ ------------
Net increase 3,404 $ 41,363
------------ ------------
Class X Shares(2)
Shares sold 81,228 $ 982,263
Shares issued on reinvestment -- --
Shares redeemed (3,259) (40,664)
------------ ------------
Net increase 77,969 $ 941,599
------------ ------------
</TABLE>
56 ING Funds Semi-Annual Report / April 30, 1999
<PAGE> 59
Transactions in shares for the period ended April 30, 1999 were as follows:
<TABLE>
<CAPTION>
Shares Amount
- -------------------------------------------------------------------------------
ING EUROPEAN EQUITY FUND
Class A Shares(1)
<S> <C> <C>
Shares sold 2,584,072 $ 25,883,003
Shares issued on reinvestment -- --
Shares redeemed (8,487) (88,564)
--------- ------------
Net increase 2,575,585 $ 25,794,439
--------- ------------
Class B Shares(1)
Shares sold 47,694 $ 498,759
Shares issued on reinvestment -- --
Shares redeemed (57) (596)
--------- ------------
Net increase 47,637 $ 498,163
--------- ------------
Class C Shares(1)
Shares sold 1,686 $ 17,403
Shares issued on reinvestment -- --
Shares redeemed -- --
--------- ------------
Net increase 1,686 $ 17,403
--------- ------------
Class X Shares(5)
Shares sold 51,541 $ 531,918
Shares issued on reinvestment -- --
Shares redeemed -- --
--------- ------------
Net increase 51,541 $ 531,918
--------- ------------
ING INTERNATIONAL EQUITY FUND
Class A Shares(1)
Shares sold 2,530,981 $ 25,325,858
Shares issued on reinvestment -- --
Shares redeemed (29) (313)
--------- ------------
Net increase 2,530,952 $ 25,325,545
--------- ------------
Class B Shares(1)
Shares sold 13,375 $ 141,565
Shares issued on reinvestment -- --
Shares redeemed (44) (466)
--------- ------------
Net increase 13,331 $ 141,099
--------- ------------
Class C Shares(1)
Shares sold 1,718 $ 18,900
Shares issued on reinvestment -- --
Shares redeemed -- --
--------- ------------
Net increase 1,718 $ 18,900
--------- ------------
Class X Shares(6)
Shares sold 10,640 $ 109,335
Shares issued on reinvestment -- --
Shares redeemed -- --
--------- ------------
Net increase 10,640 $ 109,335
--------- ------------
</TABLE>
<TABLE>
<CAPTION>
Shares Amount
- --------------------------------------------------------------------------------
ING GLOBAL BRAND NAMES FUND
Class A Shares(1)
<S> <C> <C>
Shares sold 2,853,729 $ 28,879,261
Shares issued on reinvestment -- --
Shares redeemed (23,350) (255,969)
--------- ------------
Net increase 2,830,379 $ 28,623,292
--------- ------------
Class B Shares(1)
Shares sold 64,089 $ 701,812
Shares issued on reinvestment -- --
Shares redeemed (1,160) (12,628)
--------- ------------
Net increase 62,929 $ 689,184
--------- ------------
Class C Shares(1)
Shares sold 620,292 $ 6,724,776
Shares issued on reinvestment -- --
Shares redeemed -- --
--------- ------------
Net increase 620,292 $ 6,724,776
--------- ------------
Class X Shares(7)
Shares sold 115,149 $ 1,258,901
Shares issued on reinvestment -- --
Shares redeemed (1,215) (13,680)
--------- ------------
Net increase 113,934 $ 1,245,221
--------- ------------
ING HIGH YIELD BOND FUND
Class A Shares(1)
Shares sold 2,739,210 $ 27,426,447
Shares issued on reinvestment 51,063 518,153
Shares redeemed (8,279) (84,501)
--------- ------------
Net increase 2,781,994 $ 27,860,099
--------- ------------
Class B Shares(1)
Shares sold 114,925 $ 1,172,412
Shares issued on reinvestment 200 2,036
Shares redeemed (605) (6,166)
--------- ------------
Net increase 114,520 $ 1,168,282
--------- ------------
Class C Shares(1)
Shares sold 23,252 $ 235,711
Shares issued on reinvestment 180 1,831
Shares redeemed (317) (3,275)
--------- ------------
Net increase 23,115 $ 234,267
--------- ------------
Class X Shares(2)
Shares sold 42,707 $ 433,859
Shares issued on reinvestment 244 2,483
Shares redeemed -- --
--------- ------------
Net increase 42,951 $ 436,342
--------- ------------
</TABLE>
ING Funds Semi-Annual Report/April 30, 1999 57
<PAGE> 60
April 30, 1999 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
Transactions in shares for the period ended April 30, 1999 were as follows:
<TABLE>
<CAPTION>
Shares Amount
- --------------------------------------------------------------------------------
ING INTERMEDIATE BOND FUND
Class A Shares(1)
<S> <C> <C>
Shares sold 3,219,676 $ 32,093,501
Shares issued on reinvestment 36,508 359,734
Shares redeemed (79,787) (787,943)
--------- ------------
Net increase 3,176,397 $ 31,665,292
--------- ------------
Class B Shares(1)
Shares sold 174,019 $ 1,713,369
Shares issued on reinvestment 551 5,391
Shares redeemed (12,976) (127,786)
--------- ------------
Net increase 161,594 $ 1,590,974
--------- ------------
Class C Shares(1)
Shares sold 43,239 $ 429,013
Shares issued on reinvestment 295 2,896
Shares redeemed -- --
--------- ------------
Net increase 43,534 $ 431,909
--------- ------------
Class X Shares(2)
Shares sold 151,848 $ 1,493,675
Shares issued on reinvestment 408 3,989
Shares redeemed (44,354) (435,656)
--------- ------------
Net increase 107,902 $ 1,062,008
--------- ------------
</TABLE>
<TABLE>
<CAPTION>
Shares Amount
- --------------------------------------------------------------------------------
ING MONEY MARKET FUND
Class A Shares(1)
<S> <C> <C>
Shares sold 37,057,997 $ 37,057,997
Shares issued on reinvestment 353,717 353,717
Shares redeemed (7,025,395) (7,025,395)
--------- ------------
Net increase 30,386,319 $ 30,386,319
--------- ------------
Class B Shares(1)
Shares sold 66,084 $ 66,084
Shares issued on reinvestment 214 214
Shares redeemed (5,000) (5,000)
--------- ------------
Net increase 61,298 $ 61,298
--------- ------------
Class C Shares(1)
Shares sold 60,307 $ 60,307
Shares issued on reinvestment 95 95
Shares redeemed (5,321) (5,321)
--------- ------------
Net increase 55,081 $ 55,081
--------- ------------
Class X Shares(8)
Shares sold 970,399 $ 970,399
Shares issued on reinvestment 1,749 1,749
Shares redeemed (207,125) (207,125)
--------- ------------
Net increase 765,023 $ 765,023
--------- ------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class X shares commenced operations on January 11, 1999.
3. Class X shares commenced operations on January 12, 1999.
4. Class X shares commenced operations on January 19, 1999.
5. Class X shares commenced operations on January 15, 1999.
6. Class X shares commenced operations on February 16, 1999.
7. Class X shares commenced operations on January 14, 1999.
8. Class X shares commenced operations on January 20, 1999.
58 ING Funds Semi-Annual Report/April 30, 1999
<PAGE> 61
ING MUTUAL FUNDS
BOARD OF TRUSTEES
John J. Pileggi, Chairman of the Board
Joseph N. Hankin
Jack D. Rehm
Blaine E. Rieke
Richard A. Wedemeyer
OFFICERS
John J. Pileggi, President & CEO
Lisa M. Buono, Vice President
Louis S. Citron, Vice President
Ralph G. Norton III, Vice President
Donald E. Brostrom, Treasurer
Rachelle I. Rehner, Secretary
Charles Eng, Assistant Treasurer
Amy Lau, Assistant Treasurer
OFFICE OF THE FUNDS
1475 Dunwoody Drive
West Chester, PA 19380-1478
MANAGER
ING Mutual Funds Management Co. LLC
1475 Dunwoody Drive
West Chester, PA 19380-1478
DISTRIBUTOR
ING Funds Distributor, Inc.
1475 Dunwoody Drive
West Chester, PA 19380-1478
CUSTODIAN
Investors Fiduciary Trust Co.
801 Pennsylvania Street
Kansas City, MO 64105
TRANSFER AGENT
DST Systems, Inc.
333 W. 11th Street
Kansas City, MO 64105
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
LEGAL COUNSEL
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Avenue of the Americas
New York, NY 10019-6064
SUB-ADVISERS
Baring Asset Management, Inc.
125 High Street
Boston, MA 02110
Baring International Investment Limited
155 Bishopgate
London, England EC2M 3XY
Baring International Investment
(Far East) Limited
19/F Edinburgh Tower, The Landmark,
15 Queens Road, Central, Hong Kong
Delta Asset Management
333 South Grand Avenue
Los Angeles, CA 90071
Furman Selz Capital Management LLC
230 Park Avenue
New York, NY 10169
ING Investment Management Advisors B.V.
Schenkkade 65, 2595 AS
The Hague, The Netherlands
ING Investment Management LLC
5780 Powers Ferry Road, N.W., Suite 300
Atlanta, GA 30327
ING Funds Semi-Annual Report / April 30, 1999 59
<PAGE> 62
ING FUNDS SERVICES
www.ingfunds.com -- Your Around-the-Clock Information Source
INSTANT FUND AND FINANCIAL MARKET INFORMATION
To learn the latest information on the ING Funds and your accounts, look no
further than our Web site at www.ingfunds.com. When you reach our homepage
you'll have instant access to the prior business day closing prices on all the
ING Funds. As a special feature, we also provide updates throughout the business
day on the performance of several key financial market indicators -- including
the Dow Jones Industrial Average, the S&P 500 Index and the 30-year Treasury
bond. What's more, you can even receive free quotes on thousands of mutual funds
and stocks.
[Graphic]
REVIEW YOUR ING FUNDS ACCOUNTS To receive an update on your ING Funds accounts
simply click on "Shareholders & Investors" on the top of the homepage, and then
on "My Accounts." This is a secure section of the site, and you'll be asked to
provide your Social Security number and a password/PIN to enter. To create a
password, call ING Funds at 1-877-INFO-ING (1-877-463-6464). Once the phone
representative establishes the password, click on "View Account" to access your
ING Funds portfolio information. Here you'll find a host of information, such as
your latest account balance and a complete history of your account. You can even
order duplicate statements and tax documents to be sent to your address of
record.
[Graphic]
COMING SOON: ACCOUNT TRANSACTIONS In the near future, you'll also be able to use
the site to make account purchases, redemptions and exchanges. In the "My
Accounts" section you'll click on "Account Transactions." You will then be able
to make a purchase, exchange or redemption. After you conduct the transaction
you will receive a confirmation in the mail.
[Graphic]
FOR ADDITIONAL INFORMATION ON THE ING FUNDS WEB SITE, PLEASE CALL ING FUNDS AT
1-877-INFO-ING (1-877-463-6464), MONDAY THROUGH FRIDAY, 8:00AM - 6:00PM, EST.
24-HOUR AUTOMATED TELEPHONE INFORMATION
If you don't have access to the Web, you can always call our 24-hour automated
telephone information system at 1-877-INFO-ING (1-877-463-6464). The system is
easy to use, and with it you can:
- - Obtain fund prices
- - Learn account balances
- - Review recent account history.
And shortly, you'll be able to use this service to make purchases, exchanges and
redemptions.
60 ING Funds Semi-Annual Report/April 30, 1999
<PAGE> 63
ING MUTUAL FUNDS
A list of fund objectives and primary portfolios
ING offers a globally diverse fund family to help meet your needs and long-term
goals. These include U.S. stock, U.S. bond and a variety of global and
international funds. To learn which ING Mutual Funds best meet your investment
objectives, contact your financial advisor for additional information, including
a prospectus. You can also call us toll free at 1-877-INFO-ING (1-877-463-6464)
or visit our Web site at www.ingfunds.com
STOCK FUNDS
<TABLE>
<CAPTION>
FUND OBJECTIVE PRIMARY PORTFOLIO
<S> <C> <C>
ING Small Cap Growth Fund Growth of capital Primarily small cap companies
ING Focus Fund Growth of capital A non-diversified portfolio of stocks
ING Mid Cap Growth Fund Growth of capital Primarily mid cap companies
ING Large Cap Growth Fund Growth of capital Primarily large cap companies
ING Tax Efficient Equity Fund High total return A diversified portfolio of stocks
ING Growth&Income Fund High total rates of return Primarily income-producing stocks
GLOBAL/INTERNATIONAL FUNDS
BOND FUNDS
ING International Bond Fund High total return A non-diversified portfolio of bonds from
issuers generally outside of the U.S.
STOCK FUNDS
ING Global Information Technology Fund Growth of capital Primarily global information technology stocks
ING European Equity Fund Growth of capital Primarily European companies
ING International Equity Fund Growth of capital Primarily companies outside of the U.S.
ING Global Brand Names Fund Growth of capital A non-diversified portfolio of multi-national
companies with well-known brands
BOND FUNDS
ING High Yield Bond Fund High current income and total return Below-investment grade corporate bonds
ING Intermediate Bond Fund High current income U.S. government and high-quality
corporate bonds
MONEYMARKET FUNDS
ING Money Market Fund High level of current income 1st tier commercial paper
</TABLE>
<PAGE> 64
ING MUTUAL FUNDS
Information and Services
CUSTOMER SERVICE
REPRESENTATIVES
1-877-INFO-ING
(1-877-463-6464)
Mon - Fri 8:00am - 6:00pm
AUTOMATED FUND AND
ACCOUNT INFORMATION
1-877-INFO-ING
(1-877-463-6464)
24 hours, 7 days a week
WEB SITE
www.ingfunds.com
TRANSFER AGENT
DST Systems, Inc.
333 West 11th Street
Kansas City, MO 64105
This report is authorized for use only when preceded or accompanied by the
current ING Funds prospectus, which describes in greater detail the investment
policies, management fees and other matters of interest to investors. Please
read the prospectus carefully before you invest or send money. This report does
not offer for sale or solicit orders to buy any security. If used as sales
material after June 30, 1999, this report must be accompanied by performance for
the most recently completed calendar quarter.
[ING FUNDS LOGO]
RS.0000.6/99
