<PAGE> 1
AMERICAS ING FUNDS
ING DOMESTIC MUTUAL FUNDS
SEMI-ANNUAL REPORT / APRIL 30, 2000
[FLAG GRAPHIC]
[ING LOGO]
<PAGE> 2
TABLE OF CONTENTS
Fund information at your fingertips
WE ARE PLEASED TO PROVIDE THIS DETAILED REVIEW OF ING MUTUAL FUNDS FOR THE
PERIOD THAT ENDED APRIL 30, 2000. TO HELP ANALYZE YOUR FUND, WE HAVE BROKEN DOWN
THE REPORT INTO A NUMBER OF EASY-TO-FOLLOW SECTIONS. LISTED BELOW IS A TABLE OF
CONTENTS AND DESCRIPTION OF EACH SECTION.
Pages 3-12 FUND SUMMARIES
A summary of the Funds' performance record and portfolio composition, and an
interview with the Funds' portfolio manager or managers.
Pages 14 - 29 SCHEDULES OF INVESTMENTS
A complete listing of the securities in the Funds' portfolio as of April 30,
2000. This section also includes the number of shares or principal amount, and
market value as of the end of the reporting period.
<TABLE>
<CAPTION>
SCHEDULE OF
FUND NAME FUND SUMMARY INVESTMENTS
<S> <C> <C>
ING Internet Fund Page 3 Page 14
ING Small Cap Growth Fund Page 4 Page 15
ING Focus Fund Page 5 Page 17
ING Mid Cap Growth Fund Page 6 Page 18
ING Large Cap Growth Fund Page 7 Page 20
ING Tax Efficient Equity Fund Page 8 Page 21
ING Growth &Income Fund Page 9 Page 23
ING High Yield Bond Fund Page 10 Page 25
ING Intermediate Bond Fund Page 11 Page 27
ING National Tax-Exempt Bond Fund Page 12 Page 29
</TABLE>
Pages 31 - 35 FINANCIAL HIGHLIGHTS
A description of the factors that affected a Fund's net asset value (NAV) during
the reporting period. In addition to providing total returns, this section
reports asset sizes, distributions, expense ratios and portfolio turnover rates
(when applicable).
Pages 36 - 37 STATEMENTS OF ASSETS & LIABILITIES
A complete "balance sheet" as of the end of the reporting period. It includes
the Funds' NAV, which is calculated by dividing its net assets (assets minus
liabilities) by its number of shares outstanding.
Pages 38 - 39 STATEMENTS OF OPERATIONS
A listing of a Fund's investment income, expenses and gains or losses on
securities, as well as appreciation or depreciation from portfolio holdings.
Pages 40 - 42 STATEMENTS OF CHANGES IN NET ASSETS
A reporting of the increase or decrease in a Fund's net assets during the
reporting period. Changes in net assets could occur for a variety of reasons,
including investment operations, dividend distributions and capital share
transactions.
Pages 43 - 54 NOTES TO FINANCIAL STATEMENTS
A description of the significant accounting policies of the Funds, and more
detailed information about the schedules and tables that appear in the report.
Page 56 ING FUNDS SERVICES
A description of convenient services available to Fund shareholders.
INSIDE BACK COVER FUND FAMILY OVERVIEW
A brief summary of the ING Funds, including objectives and primary portfolios.
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.
ING Funds are distributed by ING Funds Distributor, Inc.
1475 Dunwoody Drive, West Chester, PA 19380. Member NASD.
<PAGE> 3
A LETTER FROM THE PRESIDENT
[PICTURE OF JOHN J. PILEGGI]
John J. Pileggi
President & CEO
ING Funds
"DESPITE THE DECLINES IN STOCK PRICES, THE BASIC FUNDAMENTALS OF THE ECONOMY
REMAINED IN VERY GOOD SHAPE."
DEAR FELLOW SHAREHOLDERS,
We are pleased to present the latest ING Funds Semi-Annual Report, covering the
six-month period that ended April 30, 2000. We'll begin with a review of the
financial markets, followed by detailed information about your fund investment.
A VOLATILE STOCK MARKET During the reporting period of November 1999 through the
end of April 2000, the S&P 500 Index produced a 7.20% total return, while the
technology laden Nasdaq composite rose 30.14%. Overseas, the broad MSCI EAFE
Index rose 6.85%. However, strong returns during the last two months of 1999
masked the weakness of the financial markets thus far in 2000.
In the first four months of this year, the U.S. equity markets experienced a
long expected correction in stock prices. This was not just limited to the "new
economy" technology sector, but also to many traditional, well established
firms. While the correction was significant, it was much more of a market event
than an economic event. Despite the declines in stock prices, the basic
fundamentals of the economy remained in very good shape. To a great extent, the
correction was due to simple profit taking. In addition, concerns over valuation
and the legal problems encountered by market leader Microsoft, added to the
market's volatility.
Overseas, many international markets have experienced similar volatility,
oftentimes due to a decline in technology stocks. Additionally, while several
European equity markets have managed to post gains this year, after accounting
for the steep fall in the euro, U.S. investors have been saddled with negative
net returns. Finally, in Japan, there have been mixed signals regarding the
country's economy. However, government intervention and corporate restructuring
has led to a cautiously optimistic outlook for its market.
A MIXED BOND MARKET After registering one of its worst years in 1999, the U.S.
bond market finally showed some life during the first few months of 2000. The
Treasury 30-year bond fell from over 6.5% at the start of the year to below 6%
by the end of April. The dramatic decline in long-term yields caused the yield
curve to invert, where short-term rates were actually higher than long-term
rates. Much of the move in the bond market was attributed to the Treasury
Department changing the supply of the 30-year bond, and a move by the market to
anoint the 10-year bond as the new benchmark. In the near-term, it's expected
that the Federal Reserve will continue to aggressively raise interest rates.
However, the bond market has not experienced a major correction, as bond
investors look at the Fed's action as a preemptive move against rising
inflation.
LOOKING AHEAD In summary, it has been an eventful period in the financial
markets, one that we think magnifies the value of professional investment
management and advice. While short-term volatility may continue to make
headlines, we believe those who maintain a broadly diversified portfolio and
take a long-term investment approach will be rewarded over time.
I would also like to take this opportunity to point out that we have
recently broadened our investment line-up, with the addition of the ING Global
Communications Fund and ING Emerging Markets Equity Fund. We have also continued
to enhance our Web site, www.ingfunds.com, and 24-hour automated telephone
system, 1-877-463-6464. Details on these services can be found on page 56 of
this report.
I would like to thank you for your investment with ING Funds, 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 1, 2000
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 1
<PAGE> 4
ING FUNDS PERFORMANCE SUMMARY
DATA AS OF APRIL 30, 2000
<TABLE>
<CAPTION>
Cumulative Total Return w/Sales Charge(5)
Share Inception Newspaper --------------------------------------------------
Class Date Quotron CUSIP Listing YTD 1-Year Inception
----- ---- ------- ----- ------- --- ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
STOCK FUNDS
ING INTERNET FUND(1) A 07/01/99 INGAX 45683V209 InternetA - 28.00% n/a 68.61%
B 07/01/99 INGBX 45683V308 InternetB - 27.54 n/a 72.79
C 07/01/99 INICX 45683V407 InternetC - 24.55 n/a 76.89
X(4) 07/01/99 n/a 45683V712 n/a - 27.50 n/a 72.89
ING SMALL CAP A 12/15/98 ISCGX 45683U532 SmCpGrA - 4.94 44.81% 48.63
GROWTH FUND(2,6) B 12/15/98 n/a 45683U524 n/a - 4.42 47.79 52.30
C 12/15/98 n/a 45683U516 n/a - 0.42 51.79 56.30
X(4) 01/11/99 n/a 45683U490 n/a - 4.42 47.59 35.15
ING FOCUS FUND A 12/15/98 IFFAX 45683U235 FocusA - 5.94 10.70 32.40
B 12/15/98 n/a 45683U227 n/a - 5.42 11.82 35.37
C 12/15/98 n/a 45683U219 n/a - 1.51 15.65 39.17
X(4) 01/12/99 n/a 45683U193 n/a - 5.42 11.76 24.27
ING MID CAP A 12/15/98 IMCGX 45683U573 MdCpGrA 9.59 22.69 23.85
GROWTH FUND B 12/15/98 n/a 45683U565 n/a 11.04 24.42 26.20
C 12/15/98 n/a 45683U557 n/a 15.04 28.42 30.20
X(4) 01/19/99 n/a 45683U540 n/a 11.04 24.29 19.65
ING LARGE CAP A 12/15/98 ILCGX 45683U664 LgCpGrA - 7.25 7.50 22.90
GROWTH FUND B 12/15/98 n/a 45683U656 n/a - 6.66 8.41 25.40
C 12/15/98 n/a 45683U649 n/a - 2.80 12.32 29.30
X(4) 01/11/99 n/a 45683U631 n/a - 6.73 8.15 15.32
ING TAX EFFICIENT A 12/15/98 ITEAX 45683U276 TxEfEqA - 3.56 4.95 23.16
EQUITY FUND B 12/15/98 n/a 45683U268 n/a - 2.87 5.86 26.04
C 12/15/98 n/a 45683U250 n/a 1.14 9.78 29.50
X(4) 01/11/99 n/a 45683U243 n/a - 2.87 5.80 13.00
ING GROWTH A 12/15/98 IGIFX 45683U623 GrIncA - 5.90 3.90 14.79
& INCOME FUND B 12/15/98 n/a 45683U615 n/a - 5.47 4.31 16.67
C 12/15/98 n/a 45683U599 n/a - 1.41 8.41 20.68
X(4) 01/12/99 n/a 45683U581 n/a - 5.39 4.41 9.05
BOND FUNDS
ING HIGH YIELD A 12/15/98 IHYAX 45683U847 HiYldA - 5.44% - 2.24% 3.65%
BOND FUND(3) B 12/15/98 n/a 45683U839 n/a - 5.81 - 2.89 3.72
C 12/15/98 n/a 45683U821 n/a - 1.96 0.96 7.70
X(4) 01/11/99 n/a 45683U813 n/a - 5.81 - 2.88 3.14
ING INTERMEDIATE A 12/15/98 IIBAX 45683U888 InmdBdA - 3.33 - 3.79 - 4.31
BOND FUND B 12/15/98 n/a 45683U870 n/a - 3.68 - 4.38 - 4.30
C 12/15/98 n/a 45683U862 n/a 0.29 - 0.66 - 0.55
X(4) 01/11/99 n/a 45683U854 n/a - 3.69 - 4.38 - 3.27
ING NATIONAL TAX-EXEMPT A 11/08/99 n/a 45683U714 n/a - 2.01 n/a - 4.30
BOND FUND B 11/08/99 n/a 45683U698 n/a - 2.43 n/a - 4.93
C 11/08/99 n/a 45683U680 n/a 1.58 n/a - 0.88
</TABLE>
Past performance is historical and cannot guarantee future results. Because of
ongoing market volatility, each Fund's performance may be subject to substantial
short-term changes.
THESE AND OTHER RISKS ARE MORE FULLY DESCRIBED IN THE CURRENT FUND PROSPECTUS.
1. The Fund concentrates its investments in Internet-related companies and
carries more risks than more diversified funds. 2. Investments in small
capitalization issuers carry more risks than larger companies. 3. Investments in
high yield bonds carry particular market risks and may experience greater
volatility in market value than investment grade corporate bonds. 4. 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. 5. Cumulative total return (not
annualized). Fund returns include change in share value and reinvestment of
distributions. Class A shares are subject to a maximum initial sales charge of
5.75% (Stock Funds); and 4.75% (Bond Funds). Class B and Class X shares are
subject to a maximum contingent deferred sales charge of 5% (1-year) and 4%
(inception); Class C shares are subject to a maximum CDSC of 1% (1-year). For
the Funds that are in operations for less than one year, the CDSC for Class B
and X shares are 5% and for Class C shares is 1%. 6. Prior to 10/31/99 the Fund
had a different Sub-Adviser.
2 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 5
DATA AS OF 4/30/00
ING INTERNET FUND
FOR INVESTORS SEEKING LONG-TERM CAPITAL APPRECIATION FROM A NON-DIVERSIFIED
EQUITY PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
ING Internet Fund vs. @Net Index (IIX): 7/1/99 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares @Net Index (IIX)
<S> <C> <C> <C> <C>
9425 10000 10000 10000
8115 8600 8600 8899
9020 9550 9560 9488
10132 10720 10730 10333
11942 12630 12630 11387
15740 16630 16650 13995
22075 23311 23341 18333
19339 20419 20439 17068
25735 27154 27174 20091
21999 23210 23230 19871
16861 17279 17689 16380
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B & C shares are subject to a maximum CDSC of 5% and
1%, respectively. Ending values include change in share value and reinvestment
of distributions. The @Net Index (IIX) is unmanaged with no sales charges or
expenses.
CUMULATIVE TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
YTD -28.00% -27.54% -24.55% -27.50%
Inception 68.61 72.79 76.89 72.89
</TABLE>
Inception date for the Fund is 7/1/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns (not annualized) include change in share value and reinvestment of
distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Cisco Systems, Inc. 5.5%
America Online, Inc. 4.9
Inktomi Corp. 4.7
DoubleClick Inc. 4.3
TIBCO Software Inc. 4.3
Yahoo! Inc. 4.3
VeriSign, Inc. 4.0
Broadcom Corp. 3.8
Allaire Corp. 3.8
eBay Inc. 3.3
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Internet Software 44.4%
Internet Content 15.4
Computer Data Security 6.9
E-Commerce 6.4
Networking Products 5.4
</TABLE>
MANAGER'S OVERVIEW
[GUY UDING PHOTO]
GUY UDING
Portfolio Management
Team Leader
OBJECTIVE
LONG-TERM CAPITAL APPRECIATION through the investment in a non-diversified
portfolio of U.S. and non-U.S. Internet technology companies.
"ONE THEME THAT WORKED WELL FOR THE FUND HAS BEEN INTERNET INFRASTRUCTURE."
SEE PAGE 14 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform versus its benchmark during the reporting
period?
ANSWER: Overall, the Fund produced outstanding absolute results. However, its
return was slightly less than that of its benchmark.
QUESTION: What caused the correction that occurred in the Internet sector?
ANSWER: Doubts about Internet stock valuations and the validity of some business
models made investors more cautious. In addition, Federal Reserve tightening
put additional pressure on the stock market. However, first quarter 2000
earnings for most Internet companies were better than expected. And a wide
range of companies posted profits for the first time.
QUESTION: What were some of the areas you focused on for the Fund?
ANSWER: One theme that worked well has been Internet infrastructure. As
businesses started using the Web as a corporate platform the reliability,
speed and security of Internet transactions became more important. Another
winning theme was Internet software. Businesses have given a high priority
to the implementation of an Internet strategy. This resulted in a demand for
Internet based, quick to install, Internet commerce platforms.
QUESTION: Were there any areas that didn't meet your expectations?
ANSWER: While business-to-business became a hot topic during the period, not
every business model could fully profit from the surge in online transaction
revenues. Another area of relative weakness has been DSL service providers.
Mounting regulatory issues have lowered visibility in this sector and have
delayed the rollout of broadband Internet access in the U.S.
QUESTION: Looking ahead, what areas do you believe hold the most promise?
ANSWER: We expect traditional companies to close the gap with pure Internet
companies, either by buying Web businesses or establishing their own. This
will mean further investments in infrastructure build-out, both hardware and
software. With ongoing shortages in skilled people, Internet consulting
firms should be rewarded with contracts from both off- and online
businesses, provided they can deliver within reasonable time frames.
Finally, broadband Internet will increasingly find its way to the end user.
Access technologies like DSL and cable will become available to a broader
audience.
QUESTION: What is your outlook for the Fund?
ANSWER: Going forward, we expect volatility to be high in the Internet sector.
We will continue to take a selective approach towards Internet companies,
and will focus on how these firms manage growth. Unproven business concepts
will be less attractive investments, as a proven track record and a sound
financial framework will be key features we look for.
[ING LOGO] ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 3
<PAGE> 6
DATA AS OF 4/30/00
ING SMALL CAP GROWTH FUND
FOR AGGRESSIVE INVESTORS SEEKING ABOVE-AVERAGE LONG-TERM GROWTH
GROWTH OF A $10,000 INVESTMENT
ING Small Cap Growth Fund vs. Russell 2500 Growth Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Russell 2500 Growth
<S> <C> <C> <C> <C>
9425 10000 10000 10000
10697 11350 11350 11215
10443 11070 11070 11539
9576 10150 10150 10603
9491 10050 10050 11098
9670 10230 10230 11983
9500 10050 10060 12107
10311 10900 10910 12963
10019 10580 10590 12698
9962 10520 10530 12424
9906 10450 10450 12513
10669 11260 11260 13123
12008 12670 12670 14672
14741 15540 15540 17440
15306 16120 16110 17342
19642 20680 20670 21790
16635 17500 17500 20080
14863 15230 15630 18124
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The Russell 2500 Growth Index is unmanaged with
no sales charges or expenses. Furman Selz Capital Management became Sub-Adviser
to the Fund on October 31, 1999.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1-Year 44.81% 47.79% 51.79% 47.59%
Inception 33.47 35.86 38.45 26.10
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/11/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
LTX Corp. 4.7%
E-Tek Dynamics, Inc. 3.4
Novellus Systems, Inc. 3.3
TriQuint Semiconductor, Inc. 3.0
International Rectifier Corp. 2.8
Mercury Interactive Corp. 2.5
Westell Technologies, Inc. 2.4
Remedy Corp. 2.2
eXcelon Corp. 2.1
Health Management Associates, Inc. 2.0
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Electronic Component Semiconductor 17.6%
Internet Software 8.9
Enterprise Software/Service 6.0
Telecommunication Equipment 4.4
Computer Services 3.3
</TABLE>
[MANAGER'S OVERVIEW]
[GEORGE PAOLETTI PHOTO]
GEORGE PAOLETTI
Portfolio Manager
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of companies
primarily with market capitalizations of $200 million to $5 billion.
"THE FUND'S OVERWEIGHT POSITION IN DIGITAL ECONOMY STOCKS ENHANCED RETURNS FOR
MUCH OF THE PERIOD."
SEE PAGE 15 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed relative to its benchmark?
ANSWER: Overall, the Fund produced exceptionally strong returns. However, it
did lag its benchmark during the reporting period.
QUESTION: Which areas were the largest contributors to performance?
ANSWER: The Fund's overweight position in digital economy stocks enhanced
returns for much of the period. Examples included technology, media, and
telecommunications issues. Earlier in the period, biotechnology issues --
specifically genomics stocks -- also enhanced returns.
QUESTION: Can you share some examples of winning investments?
ANSWER: BEA Systems is an Internet infrastructure company that provides web site
consulting services and software. The firm's stock price faltered last fall,
because of an announcement that the consulting side of its business was
stronger than anticipated. Many investors incorrectly interpreted this as a
sign that its software sales, the more lucrative portion of its operations,
were weaker than expected. In reality, the company was hiring salespeople at
a record rate, due to exceptional demand for its software products. BEA
Systems subsequently reported tremendous results, and its stock price rose
substantially.
The Fund also held a significant amount of semiconductor capital
equipment, or "semicap" stocks. The semiconductor industry under-spent on
capital equipment for several years, and it quickly had to compensate, as
demand for semiconductors began to grow last summer. One of the Fund's
largest holdings, LTX Corp., which makes semiconductor test equipment, is
an example of a strong performer in this area.
QUESTION: What areas hindered performance?
ANSWER: The severe correction that occurred in the technology sector in March
and April was the greatest detractor to results. In addition, several stock
specific holdings hurt returns. Examples include Open Market, an Internet
software company and Metaslov, a firm that sells business management
software to telecommunications providers.
QUESTION: What is your outlook for small-cap stocks and the Fund?
ANSWER: After posting tremendous gains we expect small-cap stocks to generate
much more modest results in the coming months. There are several
uncertainties on the horizon, including rising interest rates and the
possibility of slower economic growth in the U.S. Also, many of these stocks
became significantly overvalued early this year, and it will take some time
for the ultimate winners to shake out from the losers.
However, the strong U.S. dollar could hurt the revenues of large-cap
multi-nationals which generate a high portion of their sales in Europe. That
would make U.S.-focused small caps relatively more attractive.
4 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 [ING LOGO]
<PAGE> 7
DATA AS OF 4/30/00
ING FOCUS FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH FROM A NON-DIVERSIFIED EQUITY PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
ING Focus Fund vs. Russell 1000 Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Russell 1000
<S> <C> <C> <C> <C>
9425 10000 10000 10000
10320 10950 10950 10850
10773 11410 11420 11237
10811 11460 11460 10881
11140 11810 11800 11298
11272 11930 11930 11770
11216 11870 11870 11516
11942 12630 12630 12103
11565 12220 12220 11734
11235 11870 11870 11624
11027 11650 11650 11304
11819 12480 12470 12064
12309 12990 12980 12374
13270 13999 13989 13120
12900 13597 13587 12583
12832 13524 13514 12549
13659 14381 14361 13693
13240 13537 13917 13237
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The Russell 1000 Index is unmanaged with no sales
charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1-Year 10.70% 11.82% 15.65% 11.76%
Inception 22.69 24.69 27.23 18.25
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; X shares is 1/12/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
ADC Telecommunications, Inc. 4.5%
AT&T Corp. - Liberty Media Group 3.9
Bell Atlantic Corp. 3.6
Telefonaktiebolaget LM Ericsson 3.6
The Bank of New York Co., Inc. 3.5
American International Group, Inc. 3.5
The Chubb Corp. 3.4
Martin Marietta Materials, Inc. 3.3
General Motors Corp. 3.3
CBS Corp. 3.2
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Medical: Hospitals 7.4%
Telecommunication Equipment 6.9
Multimedia 4.7
Data Processing/Management 3.6
Telephone: Integrated 3.6
</TABLE>
MANAGER'S OVERVIEW
[MICHAEL L. KASS AND ADRIAN JONES PHOTOS]
MICHAEL L. KASS
ADRIAN JONES
Portfolio Managers
OBJECTIVE
GROWTH OF CAPITAL through investment in a non-diversified portfolio of
approximately 20 - 40 stocks.
"OUR LARGEST INVESTMENT THEMES WERE BANDWIDTH AND ENTERPRISE DATA MANAGEMENT --
BOTH OF WHICH WERE STRONG CONTRIBUTORS TO PERFORMANCE."
SEE PAGE 17 FOR FINANCIAL DETAILS.
QUESTION: Can you describe the Fund's performance relative to its benchmark?
ANSWER: The Fund's strategy of modest portfolio concentration, balanced by
diversification across sectors, proved successful given the prevailing
market conditions. In fact, for the six-month period ending April 30, 2000,
the Fund significantly outperformed its benchmark, the Russell 1000 Index.
QUESTION: Which investment themes drove this performance?
ANSWER: Our largest investment themes were Bandwidth and Enterprise Data
Management -- both of which were strong contributors to performance. Our
Bandwidth holdings were led by equipment companies and services. Solid
returns from holdings in the Enterprise Data Management theme included
Siebel Systems and EDM.
The Fund was also supported by several digital media stocks, including
content providers Time Warner and Liberty Media, as well as GM Hughes, a
major distributor of digital video and data services.
QUESTION: What strategies detracted from the Fund's performance?
ANSWER: The Fund's healthcare service holdings offered mixed results. Our
significant overweight position in hospital stocks generated positive
returns, in spite of the difficult environment for healthcare stocks in
general. However, our investments in Express Scripts and Bausch & Lomb
declined to an extent that they more than offset the positive returns from
our hospital stocks.
We also eliminated our positions in poor-performing waste services stocks
during the last few months of 1999. The proceeds of these sales were used to
expand our exposure to the stronger performing health care service area.
QUESTION: What is your outlook for the Fund given current market conditions?
ANSWER: Based on our extensive analysis of macro-economic issues, we believe
that the Federal Reserve Board will continue to raise interest rates and
drain the money supply. This, in turn, should serve to reduce liquidity in
the stock market. In addition, it is our opinion that the recent rise in
market volatility is likely to continue for the time being. As a result, we
will continue to maintain a healthy cash level entering the second quarter
of 2000.
Having said that, overall we are optimistic on the companies in our
portfolio and the opportunities they are addressing. Our investment style
emphasizes balance, and focuses on changes in long-term fundamentals for
companies, and the industries in which they compete. As always, we remain on
the lookout for new ideas, and look forward to the remainder of the year.
[ING LOGO] ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 5
<PAGE> 8
DATA AS OF 4/30/00
ING MID CAP GROWTH FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
GROWTH OF A $10,000 INVESTMENT
ING Mid Cap Growth Fund vs. Russell Mid Cap Growth Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Russell Mid Cap Growth
<S> <C> <C> <C> <C>
9425 10000 10000 10000
10151 10770 10770 11215
9746 10330 10330 11552
9086 9630 9630 10987
9189 9730 9730 11599
9510 10060 10060 12128
9510 10070 10060 11971
9934 10510 10500 12807
9755 10310 10310 12400
9472 10000 10000 12271
9548 10070 10070 12166
9793 10330 10330 13107
10113 10660 10660 14465
10650 11220 11220 16970
10160 10700 10700 16967
12045 12680 12680 20533
12516 13170 13170 20554
12385 12620 12620 18558
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The Russell Mid Cap Growth Index is unmanaged
with no sales charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1-Year 22.69% 24.42% 28.42% 24.29%
Inception 16.86 18.47 21.20 15.08
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/19/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
ADC Telecommunications, Inc. 2.6%
Linear Technology Corp. 2.6
Vishay Intertechnology, Inc. 2.5
Altera Corp. 2.3
Marcomedia, Inc. 2.2
Comverse Technology, Inc. 2.2
Symbol Technologies, Inc. 2.1
Circuit City Stores 2.1
American Power Conversion Corp. 2.0
MinMed Inc. 1.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Telecommunication Equipment 8.3%
Electronic Component: Semiconductor 6.8
Circuits 5.4
Internet Software 4.2
Electronic Component: Misc. 3.6
</TABLE>
MANAGER'S OVERVIEW
[MATTHEW S. PRICE AND DAVID C. CAMPBELL PHOTOS]
MATTHEW S. PRICE
DAVID C. CAMPBELL
Portfolio Managers
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of companies
primarily with market capitalizations of $500 million to $7.5 billion.
"...THE FUND HAS INVESTED IN MANY ESTABLISHED, WELL RUN AND GROWING TECHNOLOGY
COMPANIES."
SEE PAGE 18 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund generated excellent absolute returns during this period.
However, its returns relative to its benchmark, the Russell Mid-Cap Growth
Index, were not as strong.
QUESTION: Could you explain the difference between the Fund and its benchmark?
ANSWER: In some ways, the comparison of the Fund to its benchmark is not very
meaningful. That's because the Fund maintains a very disciplined investment
strategy -- one that favors stocks with positive earnings growth, relative
price strength and reasonable valuations. As such, we are not able to
participate in what we perceive as the riskier areas of the market -- the
very ones that generated the strongest results during the reporting period.
Examples in this area include many Internet and biotechnology stocks that
generate little, if any profits.
QUESTION: Does that mean the Fund can not invest in technology at all?
ANSWER: Not at all. Since its inception the Fund has invested in many
established, well run and growing technology companies. In addition, about
three months ago we instituted several adjustments to our investment
screening process. These changes have given us the flexibility to consider
less seasoned Internet, biotech and telecommunications stocks that we
believe present attractive investment opportunities. The Fund generated
strong results from our investments in semiconductor and semiconductor
equipment stocks during this period.
QUESTION: Can you give us some examples of strategies that did not work for the
Fund?
ANSWER: In addition to our self-imposed discipline that limits our investing in
certain exorbitant-price companies, our performance was impaired by holding
many slower-growing companies of the "old economy" that did not attract the
interest of momentum investors.
QUESTION: What is your outlook for the market and for the Fund?
ANSWER: History tells us that the economy tends to slow down during periods of
rising interest rates and increasing inflation concerns. And when this
occurs, the stock market oftentimes experiences difficulties -- especially
when it has become so highly valued in terms of historical price-to-earnings
ratios.
That said, we are not predicting any sort of major market correction. In
fact, we expect a prolonged "Goldilocks economy" of slower growth and low
inflation. And, as these circumstances support the digital revolution, we
will remain focused on the opportunities in technology-related stocks.
6 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 [ING LOGO]
<PAGE> 9
DATA AS OF 4/30/00
ING LARGE CAP GROWTH FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
GROWTH OF A $10,000 INVESTMENT
ING Large Cap Growth Fund vs. S&P 500 Index: 12/15/98 - 4/30/2000
[Line Graph]
<TABLE>
<CAPTION>
Class A shares Class B Class C shares S&P 500
<S> <C> <C> <C> <C>
9425 10000 10000 10000
10151 10770 10760 10771
10518 11150 11150 11222
10236 10850 10840 10873
10707 11340 11330 11308
10773 11410 11410 11745
10292 10890 10890 11468
11046 11680 11680 12104
10631 11230 11240 11727
10603 11190 11200 11668
10462 11050 11050 11348
11122 11750 11740 12067
11659 12300 12300 12312
12488 13170 13170 13037
11640 12280 12270 12382
11951 12600 12590 12148
12884 13570 13560 13337
12290 12540 12930 12935
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The S&P 500 Index is unmanaged with no sales
charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class I shares Class X shares
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
1-Year 7.50% 8.41% 12.32% N/A 8.15%
Inception 16.21 17.93 20.59 17.63 11.60
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class I shares is
9/27/99; Class X shares is 1/11/99. 1. Holdings are subject to change and are
dollar-weighted based on invested assets. 2. Past performance is historical and
is no guarantee of future results. Total returns include change in share value
and reinvestment of distributions. Class I shares (cumulative total return) does
not include sales charge.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
General Electric Co. 5.9%
Cisco Systems, Inc. 4.8
Microsoft Corp. 4.1
Citigroup Inc. 4.1
Intel Corp. 3.8
American International Group, Inc. 3.2
Wal-Mart Stores, Inc. 3.1
Wells Fargo & Co. 3.1
American Express Co. 3.0
Texas Instruments Inc. 2.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Electronic Component: Semiconductor 11.5%
Medical: Drugs 6.4
Diversified Financial Services 6.3
Diversified Manufacturing Operations 5.7
Networking Products 4.7
</TABLE>
WILLIAM H. THOMAS
Portfolio Management
Team Leader
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of companies
primarily with market capitalizations of $1 billion or more.
"WE ATTRIBUTE MUCH OF THE FUND'S SUCCESS TO POSITIVE SECTOR AND STOCK
DECISIONS."
SEE PAGE 20 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the six-month reporting period?
ANSWER: We're pleased to report that the Fund handily outperformed its
benchmark, the S&P 500 Index.
QUESTION: Can you describe the prevailing market environment during this period?
ANSWER: The market was highlighted by two opposing trends. On the one hand,
investors were clearly anxious over the impact of rising interest rates.
But, on the other hand, corporate earnings growth was well ahead of
consensus expectations. This encouraged investors to believe that higher
stock prices could be supported.
QUESTION: What factors contributed most to the Fund's success?
ANSWER: We attribute much of the Fund's success to positive sector and stock
decisions. Specifically, the Fund benefited from heavy exposure to the
technology sectors, such as semiconductors and semiconductor capital
equipment markets. Within these sectors we had significant contributions
from Intel and Applied Material.
We also benefited from our underweight position in the consumer staples
sector. Many companies in this group have struggled with adverse pricing and
volume trends over the past few years. The Fund had a few holdings in this
group, but they were limited to companies demonstrating growing market
shares and positive earnings surprises.
QUESTION: What factors hindered the Fund's performance?
ANSWER: Given rising interest rates during the period, the Fund was hurt by its
overweight in the finance sector. We had believed that interest rates would
be leveling off, and that investors would begin moving back into finance
stocks. In hindsight we were clearly early in this view. However, our
investments in this sector were not all detrimental to performance. Holdings
such as American Express, Morgan Stanley Dean Witter and Citigroup providing
relatively favorable performance within an unfavorable group.
QUESTION: What is your outlook for the stock market and the Fund?
ANSWER: The equity market has recently taken on a more defensive tone, with
investors moving out of the higher valued technology stocks and into sectors
with more perceived stability, such as pharmaceuticals, and food and
beverage companies. We believe this market broadening is a healthy
development.
In addition, it is our view that the Federal Reserve will succeed in its
goal of slowing consumer spending without bringing on a recession. Earnings
growth should continue to be generated by productivity driven investments
across all sectors, permitting stock prices to resume their upward trend in
a more sustainable growth environment.
[ING LOGO] ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 7
<PAGE> 10
DATA AS OF 4/30/00
ING TAX EFFICIENT EQUITY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH WITH MINIMUM TAX CONSEQUENCES
GROWTH OF A $10,000 INVESTMENT
ING Tax Efficient Equity Fund vs. S&P 500 Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares S&P 500
<S> <C> <C> <C> <C>
9425 10000 10000 10000
10151 10770 10770 10771
10443 11100 11070 11222
10132 10760 10730 10873
10424 11070 11040 11308
11056 11730 11690 11745
10886 11550 11510 11468
11527 12230 12180 12104
11178 11850 11810 11727
11056 11720 11680 11668
10745 11380 11340 11348
11301 11960 11920 12067
11423 12090 12050 12312
12032 12733 12679 13037
11397 12052 12005 12382
11426 12072 12025 12148
12316 13004 12960 13337
12316 12604 12950 12935
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The S&P 500 Index is unmanaged with no sales
charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1-Year 4.95% 5.86% 9.78% 5.80%
Inception 16.39 18.37 20.73 9.87
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/11/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
General Electric Co. 3.5%
Intel Corp. 3.4
Arrow Electronics, Inc. 2.4
Cisco Systems, Inc. 2.3
Applied Materials Inc. 2.2
IBM Corp. 2.1
Conoco Inc. 2.0
Texas Instruments Inc. 2.0
Analog Devices, Inc. 1.9
Sun Microsystems, Inc. 1.8
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Electronic Component: Semiconductor 9.7%
Oil Companies: Integrated 6.0
Computers: Micro 4.8
Diversified Manufacturing Operations 4.7
Medical: Drugs 4.7
</TABLE>
MANAGER'S OVERVIEW
[PICTURE OMITTED]
Bob Sandroni
Carl Goldsmith
Marla Ryan
Portfolio Managers
OBJECTIVE
HIGH TOTAL RETURN on an after-tax basis through a diversified portfolio of
stocks.
"...MAINTAINING A WELL-DIVERSIFIED APPROACH WHICH EMPHASIZES GROWTH AT A
REASONABLE PRICE WORKED WELL FOR THE FUND."
SEE PAGE 21 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed relative to its benchmark?
ANSWER: We're pleased to report that the Fund continued its trend of
outperforming its benchmark, the S&P 500 Index.
QUESTION: What were some of the major factors behind the Fund's strong returns?
ANSWER: Overall, maintaining a well-diversified approach, which emphasizes
growth at a reasonable price, worked well for the Fund. However, early in
the reporting period our valuation discipline hurt performance, due to the
astounding appreciation in the technology-laden Nasdaq. However, interest
rate worries and investor concern over the lofty valuations in the
technology sector sent the market into a corrective phase. Investor interest
subsequently turned to the more attractively valued sectors of the
marketplace that we favor for the Fund.
QUESTION: What investment strategies did you employ to enhance returns?
ANSWER: Perhaps the most important factor was staying close to a market weighted
in technology, as it provided the best of both worlds. This strategy
required us to sell a portion of our technology holdings and lock-in profits
as they moved upwards. This also served to reduce the Fund's overall
exposure to the sector during the correction phase.
In addition, the opportunistic redeployment of proceeds into select
names within financial services, capital goods, energy, and healthcare
sectors contributed positively to performance.
QUESTION: Could you share an example of a winning holding?
ANSWER: Arrow Electronics is a good example of how we look for undervalued
growth opportunities in the marketplace. The firm is a worldwide distributor
of electronic components and computer products to industrial and commercial
customers. After a major industry consolidation, Arrow now stands as one of
the two leading such global distributors. Today, the company is benefiting
from an upturn in technology spending, yet it's priced at less than
one-third of the valuations traditionally accorded semiconductor companies.
QUESTION: What strategies detracted from performance?
ANSWER: In hindsight, it would have been beneficial to pare our exposure to the
technology sector even more than we did prior to the severe correction.
QUESTION: What is your outlook for the market and the Fund?
ANSWER: In the near term, we anticipate taking a cautionary stance, based on
recent market volatility and the potential for further interest rate hikes.
In the longer term, our outlook is much more positive, as we believe our
diversified approach and emphasis on companies with excellent growth
prospects can lead to solid results.
8 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 [ING LOGO]
<PAGE> 11
DATA AS OF 4/30/00
ING GROWTH & INCOME FUND
FOR INVESTORS SEEKING LONG-TERM TOTAL RETURNS
GROWTH OF A $10,000 INVESTMENT
ING Growth & Income Fund vs. S&P 500 Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares S&P 500
<S> <C> <C> <C> <C>
9425 10000 10000 10000
9934 10540 10540 10771
10292 10910 10920 11222
9896 10490 10490 10873
10143 10748 10740 11308
10416 11039 11030 11745
10256 10858 10850 11468
10814 11439 11442 12104
10512 11119 11111 11727
10324 10908 10901 11668
10069 10638 10631 11348
10777 11379 11381 12066
11003 11600 11602 12312
11498 12127 12118 13037
11015 11605 11597 12382
10816 11394 11386 12148
11801 12418 12419 13336
11479 11667 12068 12935
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 5.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The S&P 500 Index is unmanaged with no sales
charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
<S> <C> <C> <C> <C>
1-Year 3.90% 4.31% 8.41% 4.41%
Inception 10.57 11.89 14.68 6.91
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/12/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
TOP TEN HOLDINGS(1)
General Electric Co. 4.7%
Cisco Systems, Inc. 4.2
Intel Corp. 3.9
Microsoft Corp. 3.0
Exxon Mobil Corp. 2.5
Oracle Corp. 2.5
Merck & Co., Inc. 2.4
Wal-Mart Stores, Inc. 2.3
IBM Corp. 2.1
Time Warner Inc. 2.0
TOP FIVE INDUSTRIES(1)
Medical: Drugs 8.5%
Diversified Manufacturing Operations 7.9
Computers: Micro 7.3
Electronic Component: Semiconductor 7.1
Telephone: Integrated 4.6
MANAGER'S OVERVIEW
[PICTURE OF MARTIN JANSEN]
MARTIN JANSEN
Portfolio Manager
OBJECTIVE
HIGH TOTAL RATES OF RETURN through investment in a diversified portfolio of
primarily income-producing stocks.
"IN TECHNOLOGY, OUR SELECTIVE INVESTMENTS PROVED TO BE BENEFICIAL TO THE FUND."
SEE PAGE 23 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform relative to its benchmark during the
six-month reporting period?
ANSWER: The Fund's return was relatively close to that of its benchmark, the S&P
500 Index.
QUESTION: How was the Fund affected by the pullback in technology stocks?
ANSWER: Our strategy is to avoid major sector bets. As a result, we are
particularly cautious about stock selection. In technology, our selective
investments in stocks such as Oracle, Applied Materials and EMC proved to be
beneficial to the Fund. Unfortunately, the Fund did not hold a position in
Nortel or Qualcomm, as these two stocks were exceptionally strong overall
performers during the reporting period.
QUESTION: What are some examples of non-technology securities that helped or
hindered performance?
ANSWER: Two of the Fund's strongest non-technology contributors were Corning and
Time Warner. Corning is a new holding in the Fund, added during this
six-month period. And Time Warner was a solid performer, based on its
announced plans to merge with AOL.
On the other hand, our investments in EXI and Procter & Gamble negatively
impacted performance. Both of these companies reported disappointing
earnings results and their share prices fell sharply.
QUESTION: What is your outlook for the market going forward?
ANSWER: The overdue correction we experienced in the technology sector
eliminated much of the speculative excess pent up in the stock market.
However, we believe stock prices are still vulnerable. Rising inflation and
an economy in need of a breather suggests that the Federal Reserve may need
to do even more. This would prove detrimental to interest rate sensitive
consumer staple stocks.
In the meantime, we expect stocks to continue to oscillate, and we
predict that any economic downslide would take the form of a soft landing,
which could help to protect earnings growth prospects.
QUESTION: Given this environment, what is your strategy for the Fund?
ANSWER: Our essentially neutral sector strategy remains intact. We will,
however, continue to take a cautious approach to the consumer cyclicals,
basic materials and financial sectors. We also anticipate maintaining our
long-term commitment to technology, with a focus on stocks with a strong
strategic presence, coupled with real earnings and cash flow growth.
Overall, we are convinced that investors are becoming increasingly
concerned about valuations, and are looking for companies that offer an
appropriate valuation for a given growth rate. This attitude could directly
benefit the holdings in the Fund.
[ING FUNDS LOGO}
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 9
<PAGE> 12
DATA AS OF 4/30/00
ING HIGH YIELD BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME AND TOTAL RETURNS
GROWTH OF A $10,000 INVESTMENT
ING High Yield Bond Fund vs. Lehman Brothers High Yield Index:
12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares LB High Yield Index
<S> <C> <C> <C> <C>
9524 10000 10000 10000
9567 10042 10042 10031
9772 10243 10250 10180
9757 10209 10218 10120
9906 10369 10378 10216
10094 10569 10569 10414
9905 10355 10355 10274
9980 10427 10426 10252
10009 10450 10450 10293
9987 10420 10430 10180
10051 10481 10491 10107
10131 10557 10468 10039
10332 10760 10770 10158
10442 10868 10878 10272
10338 10753 10763 10228
10367 10776 10786 10247
10256 10654 10664 10032
10365 10372 10770 10048
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 4.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The LB High Yield Index is unmanaged with no
sales charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
<S> <C> <C> <C> <C>
1-Year -2.24% -2.89% 0.96% -2.88%
Inception 2.63 2.69 5.55 2.41
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/11/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
TOP TEN HOLDINGS(1)
CSC Holdings, Inc. due 4/1/08 6.0%
Hyperion Telecomm. due 4/15/03 4.9
Echostar DBS Corp. due 2/1/06 3.8
Global Crossing Hldgs. Ltd. due 12/1/08 3.6
Century Comm. Corp. due 3/15/03 3.5
US Home Corp. due 3/1/01 3.3
Orange PLC, due 6/1/06 2.7
Gulf Canada Resources Ltd. due 11/15/05 2.6
Chancellor Media Corp. due 12/15/07 2.6
Park Place Entment. Corp. due 2/15/07 2.6
CREDIT ALLOCATION(1)
BBB/Baa 2.4%
BB/Ba 28.8
B/B 59.9
CCC/Caa 5.7
Repurchase Agreement 3.2
MANAGER'S OVERVIEW
[PICTURE OF BOB BOWMAN]
BOB BOWMAN
Portfolio Management
Team Leader
OBJECTIVE
HIGH CURRENT INCOME AND TOTAL RETURN, through investment in a diversified
portfolio of below-investment grade corporate bonds.
"WE HAVE CONTINUED TO TAKE ADVANTAGE OF TRADING OPPORTUNITIES IN THE NEW ISSUE
MARKET..."
SEE PAGE 25 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed relative to its benchmark, the Lehman
Brothers High Yield Index?
ANSWER: The Fund soundly outperformed the Index over the last six months,
generating solid results for our shareholders. We attribute the Fund's
success to three factors: credit quality, sector weighting and new issue
trading.
QUESTION: How did the Fund's credit quality affect performance?
ANSWER: The Fund maintained an average credit quality of BB-/B+ versus B+/B
for the Index. This proved significant during this six-month period, as
BB-rated securities significantly outperformed their B-rated counterparts.
We should point out, however, that our emphasis on quality was not a
complete positive for the Fund. We have maintained an underweight position
in securities rated CCC and below. Yet, for the six-month period in
question, these more speculative securities outperformed the aggregate
index.
QUESTION: What sector decisions enhanced or hindered the Fund?
ANSWER: Our sector strategy emphasized telecommunications, energy and basic
industries. Over the last six months, all three of these sectors
outperformed the Index and contributed to the Fund's success. Some weighting
decisions, however, had a negative impact on returns. For example, the Fund
was overweight in transportation, but this sector underperformed the Index.
In addition, the Fund was underweight in finance, while that sector
outperformed the Index.
QUESTION: What is the Fund's strategy for trading in the new issues market?
ANSWER: We have continued to take advantage of trading opportunities in the new
issue market to enhance the total return of the Fund. While this has proved
to be an effective strategy in the past, the new issue market has slowed
considerably in the last two months. As a result, there have been limited
opportunities in this area.
QUESTION: What is your outlook for the high yield market?
ANSWER: While we are cautious in the near term, we like the long-term
fundamentals offered in the high yield market. In the coming months, we
expect the market to continue its trend of being volatile and relatively
liquid. The increased volatility in the stock market will likely serve to
enhance the fragile nature of the high yield marketplace. However, default
rates appear to have reached a plateau, and many core high yield issuers are
performing well. Given these underlying conditions, we anticipate improving
opportunities for the Fund going forward.
[ING FUNDS LOGO]
10 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 13
DATA AS OF 4/30/00
ING INTERMEDIATE BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME CONSISTENT WITH THE PRESERVATION OF
CAPITAL AND LIQUIDITY
GROWTH OF A $10,000 INVESTMENT
ING Intermediate Bond Fund vs. Lehman Brothers Gov't./Corp. Index:
12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares LB Gov't./Corp. Index
<S> <C> <C> <C> <C>
9524 10000 10000 10000
9514 9974 9986 9960
9557 10023 10035 10030
9381 9823 9835 9792
9451 9889 9902 9841
9471 9904 9916 9865
9330 9761 9763 9764
9276 9698 9701 9733
9282 9698 9701 9706
9269 9679 9682 9698
9385 9793 9796 9786
9385 9787 9790 9811
9393 9790 9792 9805
9424 9815 9819 9745
9395 9779 9783 9742
9495 9877 9881 9864
9538 9916 9919 10007
9569 9570 9945 9958
</TABLE>
Hypothetical illustration of $10,000 includes the maximum sales charge of 4.75%
for Class A shares. Class B shares are subject to a maximum contingent deferred
sales charge (CDSC) of 5% (1-year) and 4% (inception); Class C shares has a
maximum CDSC of 1% (1-year). Ending values include change in share value and
reinvestment of distributions. The LB Gov't/Corp. Index is unmanaged with no
sales charges or expenses.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
<S> <C> <C> <C> <C>
1-Year -3.79% -4.38% -0.66% -4.38%
Inception -3.16 -3.17 -0.41 -2.53
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/11/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns include change in share value and reinvestment of distributions.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES AND RISK
CONSIDERATIONS.
TOP TEN HOLDINGS(1)
US Treasury Bonds due 8/15/29 7.3%
US Treasury Notes due 2/15/10 5.2
FNMA Pass-Thru due 11/1/14 3.7
FNMA Pass-Thru due 9/1/14 3.7
FNMA Pass-Thru due 4/1/29 3.1
Rogers Cantel Inc. due 6/1/08 2.9
US Home Corp. due 3/1/01 2.8
Finova Capital Corp. due 8/15/00 2.8
Lehman Bros. Hldgs. Inc. due 1/29/01 2.8
Garanti Trade Pymt Rights due 6/15/04 2.8
CREDIT ALLOCATION(1)
U.S. Treasury 16.2%
U.S. Government 27.7
AAA/A 7.5
BBB/BB 34.2
B/B 10.8
Repurchase Agreement 3.6
MANAGER'S OVERVIEW
[PICTURE OF JAMES B. KAUFFMANN]
JAMES B. KAUFFMANN
Portfolio Management
Team Leader
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.
"OUR SECURITY SELECTION IN THE HIGH-YIELD MARKET ALSO HELPED THE FUND'S
PERFORMANCE."
SEE PAGE 27 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed versus its benchmark?
ANSWER: The Fund outperformed its benchmark during the six-month reporting
period. This was primarily due to our security selection, which, on balance,
proved to be a positive contributor to returns relative to the index.
QUESTION: What investment strategies enhanced returns?
ANSWER: During the fourth quarter of 1999 we moved to a significant overweight
in corporate bonds, based on compelling valuations in the market. Our
strategy and timing proved to be beneficial, as these securities
outperformed most other major asset classes during that period. However, in
the last two months the market has more than given back all of this
outperformance. Fortunately, we had gradually reduced our overweight
position relative to the index earlier in the year, and we were able to
maintain the return advantage.
Our security selection in the high-yield market also helped the Fund's
performance. We carefully selected a basket of defensively oriented issues
that boosted the yield on the Fund. At the same time, they produced very
attractive price appreciation relative to bonds in the aggregate universe.
QUESTION: Were there any strategies that did not work?
ANSWER: The Fund was primarily hurt by a few individual securities that
experienced inordinate pricing pressures. This was oftentimes due to
perceived leverage buyout risk, earnings disappointments or management
missteps.
Another factor that negatively impacted returns was simply the lack of
exposure to longer-term U.S. government securities. Given the large budget
surpluses, the Treasury Department has decided to repurchase about 10% of
the available float in notes and bonds longer than 10 years. This produced a
surge in demand for these scarce issues, and bid up prices relative to all
other fixed income assets.
QUESTION: What is your outlook for the Fund?
ANSWER: Prior to the recent employment figures there was little evidence of
underlying inflation. As such, the Federal Reserve's major concern was to
slow the pace of economic growth. However, the Fed is now faced with the
prospect of simultaneously trying to slow growth and contain rising
inflation.
This is a considerable change to the situation, and why we feel the
Fed has assumed a more aggressive posture. In view of the reduced
system-wide liquidity, we anticipate limiting the Fund's exposure to riskier
asset classes in favor of Treasuries and AAA-rated mortgage securities.
[ING FUNDS LOGO]
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 11
<PAGE> 14
DATA AS OF 4/30/00
ING NATIONAL TAX-EXEMPT BOND FUND
FOR INVESTORS SEEKING CURRENT TAX-EXEMPT INCOME
ASSET ALLOCATION(1)
[PIE CHART]
Municipal Bonds 97.5%
Repurchase Agreement 2.5
CUMULATIVE TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
LB Municipal
Class A shares Class B shares Class C shares Bond Index
<S> <C> <C> <C> <C>
YTD -2.01% -2.43% 1.58% 2.31%
Inception -4.30 -4.93 -0.88 2.60
</TABLE>
Inception date for the fund is 11/8/99.
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Past performance is historical and is no guarantee of future results.
Total returns (not annualized) include change in share value and reinvestment of
distributions. LB Muni Bond Index does not include any sales charges or
expenses.
PLEASE SEE PAGE 13 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
TOP TEN HOLDINGS(1)
Virgin Is Pub Fin Auth Rev due 10/1/29 6.3%
Clark County Nev Schl Dst due 6/15/02 5.2
NY State Mtg Agency Rev due 4/1/30 5.2
Allegheny Cnty PA Port Auth due 3/1/24 5.2
Oklahoma St Inds Auth Rev due 8/15/19 5.1
Manchester NH Hsg & Redev due 1/1/08 5.1
Connecticut State, GO due 11/1/18 5.0
MA St Port Auth Revenue due 7/1/29 5.0
Interlocken Met District CO due 12/15/19 5.0
CA Health Facs Finance due 12/1/24 5.0
TOP TEN STATES(1)
New York 13.8%
Oklahoma 9.8
Virgin Islands 6.2
Nevada 5.1
New Hampshire 5.0
Pennsylvania 5.0
California 4.9
Colorado 4.9
Connecticut 4.9
Massachusetts 4.9
CREDIT ALLOCATION(1)
AAA/Aaa 33.7%
AA/Aa 24.5
A/A 29.5
BBB/Baa 9.8
Repurchase Agreement 2.5
MANAGER'S OVERVIEW
[PICTURE OF ROBERT SCHONBRUNN]
ROBERT SCHONBRUNN
Portfolio Manager
OBJECTIVE
HIGH CURRENT TAX-EXEMPT INCOME, consistent with preservation of capital and
liquidity through investment in a diversified portfolio of municipal bonds.
"THE FUND'S HIGH QUALITY PORTFOLIO ALSO PROVED TO BE A SOLID STRATEGY."
SEE PAGE 29 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed since its launch in November 1999?
ANSWER: Overall, the Fund ended its first reporting period lagging the Lehman
Muni Index. However, these final numbers do not do justice to the fact that
the Fund turned in a very strong first quarter in 2000, and we believe it is
well positioned going forward.
QUESTION: What hindered the Fund early in the period?
ANSWER: We positioned the Fund at the long end of the yield curve to take
advantage of the higher yields being offered there. However, when interest
rates rose, these holdings hurt the Fund.
QUESTION: How did you turn this situation around?
ANSWER: During the first three months of this year interest rates began to
decline. As such, the very issues that were responsible for the Fund
underperforming were suddenly helping the Fund to generate very strong
relative results. In fact, the Fund outperformed the Index (at net asset
value) for the year-to-date period that ended April 30, 2000.
The Fund's high quality portfolio also proved to be a solid strategy.
The Fund's average rating is AA, with approximately 90% of the Fund rated A
or higher. By avoiding lower quality issues we were spared when interest
rate spreads widened in this portion of the yield curve.
QUESTION: How did the Fund's sector strategy affect performance?
ANSWER: We maintained a broad diversification strategy, without taking any
large sector bets in any one area. This ultimately proved beneficial for the
Fund. For example, we maintained a relatively low weighting in the
healthcare sector, and were therefore able to avoid any real damage when
this sector suffered as a result of consolidations.
Having said that, we should point out that, while the Fund was not
heavily exposed to heathcare, we did hold some issues as part of our overall
diversification strategy. These few holdings did have a negative impact on
performance during the reporting period.
QUESTION: What is your outlook for the municipal bond market and the Fund?
ANSWER: While we believe the long-term outlook appears bright, the market may
continue to be adversely affected by the interest rate environment in the
coming months. We fully expect that the Federal Reserve Board will raise
short-term interest rates until it is satisfied that economic growth has
slowed. As the market gradually accepts this economic slowdown, interest
rates will decline and we believe the Fund's holdings will prosper.
[ING FUNDS LOGO]
12 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 15
APRIL 30, 2000 (UNAUDITED)
FOOTNOTES
FOR FUND PERFORMANCE PAGES 3 - 12
Past performance data are historical and cannot guarantee future results. The
principal value and return on an investment in the Fund will fluctuate, so that
an investor's shares when redeemed may be worth more or less than the original
cost. Because of ongoing market volatility, the Fund's performance may be
subject to substantial short-term changes. Recent stock market gains has
produced higher than usual short-term fund returns which may not continue for
the long-term.
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.
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 returns 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 ING Money Market Fund are not subject to an initial sales charge. Class B,
Class C and Class X shares assume redemption of Fund shares at the end of each
period indicated. Class B and X shares are subject to a maximum contingent
deferred sales charge (CDSC) of 5% (1-year) and 4% (inception) and Class C
shares are subject to a maximum CDSC of 1% (1-year). All share classes have the
same investment portfolio, but are subject to different expenses.
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.
Class I shares are offered only to retirement plans affiliated with ING Group.
Shares are sold without an initial sales charge and are not subject to any Rule
12b-1 fees, shareholder servicing fees or account servicing fees.
RISK CONSIDERATIONS
These and other risks are more fully described in the prospectus.
ING INTERNET FUND: concentrates its investments in internet and internet-related
companies and carries more risks than funds with more diversified portfolios.
The Fund may also invest in foreign securities.
ING SMALL CAP GROWTH FUND: invests in small, less well-known issuers. Small
capitalization issuers typically have limited product lines and smaller market
share and are less liquid than stocks of larger, more diversified companies.
ING FOCUS FUND: concentrates its investments in up to only 40 holdings. The Fund
carries more risks than larger more diversified funds.
ING TAX-EFFICIENT EQUITY FUND: may invest up to 10% of its total assets in
foreign securities which may be subject to currency fluctuations, economic and
political uncertainties.
ING HIGH YIELD BOND FUND: Investing 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.
ING INTERNET FUND AND ING FOCUS FUND: Each Fund is classified as a
non-diversified investment company, which means that compared with other funds,
each Fund may invest a greater percentage of its assets in a particular issuer.
The investment of a larger percentage of a Fund's assets in the securities of a
small number of issuers may cause the Fund's share price to fluctuate more than
that of a diversified investment company.
BENCHMARKS
THE @NET INDEX encompasses 50 companies which are key components in the
development of the Internet. The Index is weighted based on market
capitalization of each of the component stocks.
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 1,000 largest companies in
the Russell 3000 Index, which represents approximately 92% of the total market
capitalization of the Russell 3000 Index. The average market capitalization is
approximately $12.1 billion; the median market capitalization is approximately
$3.8 billion. The smallest company in the index has an approximate market
capitalization of $1,350.8 million.
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 common stocks in four broad sectors
(industrials, utilities, financial and transportation). It is a total return
index 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.
LEHMAN BROTHERS MUNICIPAL BOND INDEX is comprised of 8,000 bonds. These bonds
are all investment grade fixed-rate, long-term maturities (greater than two
years) and are selected from issues larger than 50 million. It is a total return
index.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 13
<PAGE> 16
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING INTERNET FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK(1) -- 97.7%
APPLICATIONS SOFTWARE -- 1.7%
1,330 New Era of Networks, Inc. $ 41,729
36,090 OpenTV Corp. 2,954,869
-----------
2,996,598
COMMUNICATIONS SOFTWARE -- 4.0%
73,563 Kana Communications, Inc. 3,131,021
200,440 Razorfish, Inc. 3,795,832
-----------
6,926,853
COMPUTER DATA SECURITY -- 6.9%
58,610 ISS Group, Inc. 5,300,542
49,350 VeriSign, Inc. 6,878,156
-----------
12,178,698
COMPUTER SERVICES -- 4.0%
125,890 Digitas Inc. 1,943,427
72,000 Integra SA 1,629,834
163,635 MarchFirst, Inc. 3,487,471
-----------
7,060,732
E-COMMERCE -- 6.4%
89,170 Amazon.com, Inc. 4,921,069
35,760 eBay Inc. 5,692,545
21,400 Ventro Corp. 588,500
-----------
11,202,114
ELECTRONIC COMPONENTS -- SEMICONDUCTOR -- 3.8%
38,194 Broadcom Corp. -- A Shares 6,583,691
FINANCE -- INVESTMENT BANKERS/BROKERS -- 1.9%
2,750 Consors Discount Broker AG 307,503
144,140 E*Trade Group, Inc. 3,099,010
-----------
3,406,513
INTERNET CONTENT -- 15.4%
34,360 CMGI Inc. 2,448,150
84,460 CNET Networks, Inc. 2,919,149
93,980 Critical Path, Inc. 5,462,588
97,390 DoubleClick Inc. 7,389,466
34,200 Internet Capital Group, Inc. 1,449,225
56,450 Yahoo! Inc. 7,352,612
-----------
27,021,190
INTERNET SOFTWARE -- 44.4%
26,390 Akamai Technologies, Inc. 2,609,311
116,890 Allaire Corp. 6,436,256
141,400 America Online, Inc. 8,457,488
43,620 Ariba, Inc. 3,236,059
125,965 BroadVision, Inc. 5,534,587
61,040 Commerce One, Inc. 3,727,255
22,815 E.piphany, Inc. 1,507,216
64,490 Engage Technologies, Inc. 1,612,250
60,630 Exodus Communications, Inc. 5,361,966
100,400 Fantastic Corp. -- Certificates 1,843,728
52,310 Inktomi Corp. 8,052,471
38,800 Internet Initiative Japan Inc. Sponsored ADR 2,328,000
67,980 Liberate Technologies, Inc. 2,659,717
59,320 RealNetworks, Inc. 2,825,115
69,010 Rhythms NetConnections Inc. 1,427,644
63,690 Scient Corp. 3,439,260
64,950 Software.com, Inc. 5,252,831
82,925 TIBCO Software Inc. 7,385,508
137,155 Usinternetworking, Inc. 3,411,731
15,830 Vignette Corp. 762,808
-----------
77,871,201
NETWORKING PRODUCTS -- 5.4%
136,800 Cisco Systems, Inc. 9,484,087
TELECOMMUNICATION SERVICES -- 1.6%
62,375 Net2Phone, Inc. 2,752,297
TELEPHONE -- INTEGRATED -- 2.2%
83,820 MCI WorldCom, Inc. 3,808,571
TOTAL COMMON STOCK
(Cost -- $187,025,487) $171,292,545
REPURCHASE AGREEMENT -- 2.3%
$4,071,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity --
$4,072,947; (Fully collateralized by
Federal Home Loan Bank, 6.372% due
2/7/2001; Market value -- $4,155,028)
(Cost -- $4,071,000) $ 4,071,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $191,096,487)(2) $175,363,545
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipts.
See Notes to Financial Statements.
14 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 17
ING SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 88.8%
ADVERTISING SALES -- 0.6%
7,700 Lamar Advertising Co. $ 339,281
APPLICATIONS SOFTWARE -- 3.2%
10,000 Citrix Systems, Inc. 610,625
18,500 Continuus Software Corp. 67,641
11,900 Intuit Inc. 427,656
21,000 J.D. Edwards & Co. 383,250
30,000 Parametric Technology Corp. 244,688
----------
1,733,860
BUILDING - RESIDENTIAL/COMMERCIAL -- 1.0%
40,000 D.R. Horton, Inc.(1) 517,500
CAPACITORS -- 0.3%
30,000 Surge Components, Inc. 142,500
CIRCUITS -- 1.4%
10,000 ANADIGICS, Inc. 752,500
COLLECTIBLES -- 0.9%
50,000 Action Performance Cos., Inc. 462,500
COMMERCIAL SERVICES -- 0.9%
30,000 Boron, Lepore & Associates, Inc. 251,250
10,000 CoStar Group Inc. 239,844
----------
491,094
COMMUNICATIONS SOFTWARE -- 0.5%
2,000 Kana Communications, Inc. 85,125
10,000 Razorfish, Inc. 189,375
----------
274,500
COMPUTER DATA SECURITY -- 0.6%
3,500 ISS Group, Inc. 316,531
COMPUTER GRAPHICS -- 0.2%
24,000 NeoMagic Corp. 81,000
COMPUTER SERVICES -- 3.3%
9,000 CheckFree Holdings Corp. 457,312
40,000 iXL Enterprises, Inc. 890,000
13,000 QRS Corp. 429,000
----------
1,776,312
COMPUTERS - INTEGRATED SYSTEMS -- 0.3%
5,000 eOn Communications Corp. 49,375
20,000 Zamba Corp. 130,000
----------
179,375
CONSULTING SERVICES -- 0.2%
10,000 Navigant Consulting, Inc. 99,375
DATA PROCESSING/MANAGEMENT -- 1.9%
85,000 eXcelon Corp. 998,750
DECISION SUPPORT SOFTWARE -- 1.8%
2,000 Blaze Software, Inc. 25,875
20,000 Metasolv Software, Inc. 682,500
15,000 Sagent Technology, Inc. 119,062
3,800 Wind River Systems, Inc. 162,213
----------
989,650
E-COMMERCE -- 0.4%
31,000 EMusic.com Inc. 66,844
4,500 PurchasePro.com, Inc. 135,000
----------
201,844
ELECTRONIC COMPONENTS - MISCELLANEOUS -- 2.1%
20,000 KINSEKI, Ltd.(1) 192,954
11,200 Sawtek Inc. 535,500
5,000 Vishay Intertechnology, Inc. 419,375
----------
1,147,829
ELECTRONIC COMPONENTS - SEMICONDUCTOR -- 17.6%
27,500 International Rectifier Corp. 1,350,938
10,800 KLA-Tencor Corp. 808,650
14,100 Lam Research Corp. 646,837
49,000 LTX Corp. 2,241,750
23,700 Novellus Systems, Inc. 1,580,494
10,000 Photronics, Inc. 333,125
3,500 Quantum Effect Devices, Inc. 203,875
13,800 TriQuint Semiconductor, Inc. 1,418,813
3,000 Virata Corp. 375,750
10,000 Zoran Corp. 499,375
----------
9,459,607
ENTERPRISE SOFTWARE/SERVICES -- 6.0%
16,000 BEA Systems, Inc. 772,000
24,000 Hyperion Solutions Corp. 727,875
18,000 Mercator Software, Inc. 662,625
20,000 Remedy Corp. 1,062,500
----------
3,225,000
FIBER OPTICS -- 3.1%
8,000 E-Tek Dynamics, Inc. 1,638,000
HUMAN RESOURCES -- 1.9%
15,000 HotJobs.com, Ltd. 174,375
50,000 Interim Services Inc. 856,250
----------
1,030,625
INDUSTRIAL AUTOMATION/ROBOTICS -- 0.3%
10,000 Gerber Scientific, Inc.(1) 138,750
INTERNET CONTENT -- 0.9%
7,500 Launch Media, Inc. 78,281
20,000 Rare Medium Group, Inc. 411,250
----------
489,531
INTERNET SOFTWARE -- 8.9%
10,000 Alteon Websystems, Inc. 680,000
5,000 Be Free, Inc. 62,500
16,500 C-bridge Internet Solutions, Inc. 437,250
24,700 Digital River Inc. 370,500
17,000 FirstWorld Communications Inc. -- B Shares 202,937
30,000 Information Architects Corp. 330,000
1,000 Keynote Systems, Inc. 44,875
9,000 Netopia, Inc. 375,750
30,500 Open Market, Inc. 314,531
5,000 Portal Software, Inc. 229,375
5,000 Register.com, Inc. 255,000
7,500 Rhythms NetConnections Inc. 155,156
38,000 Viant Corp. 874,000
4,250 WatchGuard Technologies, Inc. 204,797
3,000 Websense, Inc. 97,500
6,000 WorldGate Communications, Inc. 141,375
----------
4,775,546
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 15
<PAGE> 18
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING SMALL CAP GROWTH FUND (continued)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
MACHINERY - GENERAL INDUSTRIES -- 1.7%
5,000 Applied Science & Technology, Inc. $ 135,938
11,800 Asyst Technologies, Inc. 631,300
5,000 CVC Inc. 131,563
----------
898,801
MEDICAL - BIOMEDICAL/GENETIC -- 3.2%
6,800 CuraGen Corp. 181,050
7,200 IDEC Pharmaceuticals Corp. 460,800
8,800 Protein Design Labs, Inc. 893,200
10,800 Vical Inc. 194,400
----------
1,729,450
MEDICAL - DRUGS -- 1.7%
20,000 Genta Inc. 196,875
54,000 InKine Pharmaceutical Co., Inc. 317,250
35,000 IntraBiotics Pharmaceuticals, Inc. 406,875
----------
921,000
MEDICAL - HOSPITALS -- 1.8%
60,000 Health Management Associates, Inc. -- A Shares 956,250
MEDICAL PRODUCTS -- 0.5%
1,500 Luminex Corp. 27,938
2,000 MiniMed Inc. 245,875
----------
273,813
NETWORK SOFTWARE -- 0.3%
30,000 Madge Networks NV 159,375
1,000 OTG Software, Inc. 22,000
----------
181,375
NETWORKING PRODUCTS -- 2.2%
15,000 Emulex Corp. 680,625
6,000 Network Access Solutions Corp. 90,000
4,200 Network Appliance, Inc. 310,537
3,450 Performance Technologies, Inc. 120,534
----------
1,201,696
OIL & GAS DRILLING -- 0.1%
2,300 Precision Drilling Corp. 73,600
OIL COMPANIES - EXPLORATION & PRODUCTION -- 0.4%
4,000 Devon Energy Corp.(1) 192,750
PIPELINES -- 0.8%
10,300 El Paso Energy Corp.(1) 437,750
RADIO -- 0.5%
2,600 Hispanic Broadcasting Corp. 262,763
RETAIL - APPAREL/SHOE -- 1.9%
22,500 American Eagle Outfitters, Inc. 382,500
12,100 The Talbots, Inc.(1) 611,806
----------
994,306
RETAIL - HOME FURNISHINGS -- 1.4%
9,150 Cost Plus, Inc. 279,647
40,000 Pier 1 Imports, Inc.(1) 455,000
----------
734,647
RETAIL - OFFICE SUPPLIES -- 0.4%
20,000 Office Depot, Inc. 211,250
SAVINGS & LOANS/THRIFTS - EASTERN U.S. -- 0.2%
10,000 American Financial Holdings, Inc.(1) 126,250
SCHOOLS -- 0.8%
30,000 Sylvan Learning Systems, Inc. 451,875
SEISMIC DATA COLLECTION -- 1.3%
30,000 Input/Output, Inc. 221,250
19,400 Veritas DGC Inc. 465,600
----------
686,850
SOFTWARE TOOLS -- 2.3%
10,000 Inprise Corp. 52,500
13,000 Mercury Interactive Corp. 1,170,000
----------
1,222,500
TELECOMMUNICATION EQUIPMENT -- 4.4%
10,000 Aware, Inc. 390,000
13,000 Com21, Inc. 364,000
10,000 PairGain Technologies, Inc. 248,750
5,000 UTStarcom, Inc. 237,500
39,600 Westell Technologies, Inc. -- A Shares 1,126,125
----------
2,366,375
TELECOMMUNICATION SERVICES -- 1.7%
6,000 Aspect Communications Corp. 213,000
6,000 FiberNet Telecom Group, Inc. 83,250
25,500 McLeodUSA Inc. -- A Shares 637,500
----------
933,750
TELEVISION -- 0.1%
8,000 Granite Broadcasting Corp. 44,500
THERAPEUTICS -- 2.8%
45,000 AVAX Technologies, Inc. 452,812
15,700 Medarex, Inc. 832,100
5,200 Progenics Pharmaceuticals, Inc. 239,200
----------
1,524,112
TOTAL COMMON STOCK
(Cost -- $44,540,097) $47,687,123
REPURCHASE AGREEMENT -- 11.2%
$6,007,000 State Street Bank & Trust Co., 5.740% due
5/1/2000; Proceeds at maturity -- $6,009,873;
(Fully collateralized by Federal Home Loan
Bank, 6.390% due 2/7/2001; Market value --
$6,130,066) (Cost -- $6,007,000) $ 6,007,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $50,547,097)(2) $53,694,123
</TABLE>
1. Income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
16 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 19
ING FOCUS FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 86.0%
AEROSPACE/DEFENSE-EQUIPMENT -- 1.5%
16,700 General Dynamics Corp. $ 976,950
APPLICATIONS SOFTWARE -- 2.4%
12,900 Siebel Systems, Inc.(1) 1,585,087
AUTO-CARS/LIGHT TRUCKS -- 2.8%
19,700 General Motors Corp. 1,844,413
BEVERAGES - NON-ALCOHOLIC -- 2.5%
45,500 PepsiCo, Inc. 1,669,281
BROADCASTING SERVICE/PROGRAM -- 3.4%
44,000 AT&T Corp.-Liberty Media Group --
A Shares(1) 2,197,250
BUILDING PRODUCTS - CEMENT/AGGREGATE -- 2.8%
34,900 Martin Marietta Materials, Inc. 1,849,700
CELLULAR TELECOMMUNICATIONS -- 1.4%
18,950 Vodafone AirTouch PLC --
Sponsored ADR 890,650
COMPUTER SERVICES -- 0.7%
9,700 CheckFree Holdings Corp.(1) 492,881
COMPUTERS - MEMORY DEVICES -- 1.6%
7,500 EMC Corp.(1) 1,042,031
DATA PROCESSING/MANAGEMENT -- 3.6%
31,800 First Data Corp. 1,548,263
72,600 Informix Corp.(1) 798,600
----------
2,346,863
DIVERSIFIED FINANCIAL SERVICES -- 2.2%
18,600 Morgan Stanley Dean Witter & Co. 1,427,550
DIVERSIFIED MANUFACTURING OPERATIONS -- 2.2%
25,112 Honeywell International Inc. 1,406,272
FOOD - RETAIL -- 2.0%
68,900 The Kroger Co.(1) 1,278,956
INTERNET SOFTWARE -- 2.2%
38,450 Verio Inc.(1) 1,444,278
MEDICAL - HOSPITALS -- 7.4%
62,600 Columbia/HCA Healthcare Corp. 1,780,187
87,800 Health Management Associates, Inc. --
A Shares(1) 1,399,313
65,100 Tenet Healthcare Corp.(1) 1,660,050
----------
4,839,550
MEDICAL PRODUCTS -- 3.4%
21,400 Baxter International Inc. 1,393,675
10,200 Johnson & Johnson 841,500
----------
2,235,175
MONEY CENTER BANKS -- 3.0%
48,300 The Bank of New York Co., Inc. 1,983,319
MULTI-LINE INSURANCE -- 3.0%
18,073 American International Group 1,982,382
MULTIMEDIA -- 4.7%
31,050 CBS Corp.(1) 1,824,188
13,600 Time Warner Inc. 1,223,150
----------
3,047,338
NETWORK SOFTWARE -- 0.4%
20,900 Legato Systems, Inc.(1) 270,394
OIL-FIELD SERVICES -- 1.9%
28,800 Halliburton Co. 1,272,600
OIL COMPANIES - INTEGRATED -- 2.3%
30,500 Texaco Inc. 1,509,750
OPTICAL SUPPLIES -- 1.8%
19,000 Bausch & Lomb Inc. 1,147,125
PHARMACY SERVICES -- 1.2%
22,100 Express Scripts, Inc. -- A Shares(1) 790,075
PIPELINES -- 1.9%
34,100 The Williams Cos., Inc. 1,272,356
PROPERTY/CASUALTY INSURANCE -- 3.0%
30,500 The Chubb Corp. 1,940,563
RESPIRATORY PRODUCTS -- 0.1%
4,280 Edwards Lifesciences Corp.(1) 64,200
RETAIL - DISCOUNT -- 2.0%
69,300 The TJX Cos., Inc. 1,329,694
TELECOMMUNICATION EQUIPMENT -- 6.9%
41,300 ADC Telecommunications Inc.(1) 2,508,975
22,600 Telefonaktiebolaget LM Ericsson AB --
Sponsored ADR 1,998,687
----------
4,507,662
TELECOMMUNICATION SERVICES -- 2.3%
19,875 NTL Inc.(1) 1,520,438
TELEPHONE - INTEGRATED -- 3.6%
22,329 AT&T Corp. 1,042,485
29,300 SBC Communications Inc. 1,283,706
----------
2,326,191
TELEPHONE - LOCAL -- 3.1%
34,100 Bell Atlantic Corp. 2,020,425
WIRELESS EQUIPMENT -- 2.7%
14,605 Motorola Inc. 1,738,908
TOTAL COMMON STOCK
(Cost -- $48,377,825) $56,250,307
REPURCHASE AGREEMENT -- 14.0%
$9,155,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity --
$9,159,379; (Fully collateralized by
Federal Home Loan Bank, 5.700% due
8/2/2002; Market value -- $9,342,169)
(Cost -- $9,155,000) $ 9,155,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $57,532,825)(2) $65,405,307
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipts.
See Notes to Financial Statements.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 17
<PAGE> 20
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING MID CAP GROWTH FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 98.4%
ADVERTISING AGENCIES -- 1.0%
7,000 Young & Rubicam Inc.(1) $ 389,813
AEROSPACE/DEFENSE-EQUIPMENT -- 1.1%
10,000 The Titan Corp. 429,375
APPAREL MANUFACTURERS -- 1.2%
16,000 Jones Apparel Group, Inc. 475,000
APPLICATIONS SOFTWARE -- 2.5%
6,000 Citrix Systems, Inc. 366,375
13,000 National Instruments Corp. 633,750
----------
1,000,125
AUDIO/VIDEO PRODUCTS -- 1.4%
7,200 Polycom, Inc. 569,700
CIRCUIT BOARDS -- 1.7%
17,000 Jabil Circuit, Inc. 695,938
CIRCUITS -- 5.5%
18,000 Linear Technology Corp.(1) 1,028,250
5,400 Micrel, Inc. 467,100
10,000 Vitesse Semiconductor Corp. 680,625
----------
2,175,975
COMMERCIAL BANKS - EASTERN U.S. -- 0.5%
12,500 North Fork Bancorp., Inc.(1) 202,344
COMMERCIAL BANKS - SOUTHERN U.S. -- 0.4%
10,000 National Commerce Bancorp.(1) 164,375
COMMERCIAL BANKS-WESTERN U.S. -- 1.5%
13,400 City National Corp.(1) 493,288
2,500 Zions Bancorp.(1) 103,750
----------
597,038
COMMERCIAL SERVICES -- 2.4%
11,000 Convergys Corp. 484,000
6,000 Plexus Corp. 459,750
----------
943,750
COMMERCIAL SERVICES - FINANCE -- 3.4%
19,250 Concord EFS, Inc. 430,719
7,000 Nova Corp./Georgia 221,375
10,500 Paychex, Inc.(1) 552,563
9,700 The Profit Recovery Group International, Inc. 170,356
----------
1,375,013
COMPUTER DATA SECURITY -- 1.0%
5,000 RSA Security Inc. 293,438
900 VeriSign, Inc. 125,438
----------
418,876
COMPUTERS - INTEGRATED SYSTEMS -- 1.7%
13,000 National Computer Systems, Inc.(1) 668,688
COMPUTERS - MEMORY DEVICES -- 0.4%
1,650 VERITAS Software Corp. 176,988
CONSULTING SERVICES -- 0.7%
9,000 Comdisco, Inc.(1) 279,562
DATA PROCESSING/MANAGEMENT -- 2.1%
13,000 American Management Systems, Inc. 481,000
7,500 Fiserv, Inc. 344,531
----------
825,531
DENTAL SUPPLIES & EQUIPMENT -- 1.6%
20,000 Sybron International Corp. 622,500
ELECTRONIC COMPONENTS - MISCELLANEOUS -- 3.6%
8,000 Sanmina Corp. 480,500
11,500 Vishay Intertechnology, Inc. 964,563
----------
1,445,063
ELECTRONIC COMPONENTS - SEMICONDUCTOR -- 6.8%
9,000 Altera Corp. 920,250
10,500 Burr-Brown Corp. 715,313
8,800 KLA-Tencor Corp. 658,900
6,500 Novellus Systems, Inc. 433,469
----------
2,727,932
ELECTRONIC PARTS DISTRIBUTION -- 1.5%
14,000 Arrow Electronics, Inc. 613,375
ENTERPRISE SOFTWARE/SERVICES -- 1.6%
10,000 Symantec Corp. 624,375
ENTERTAINMENT SOFTWARE -- 0.5%
3,500 Electronic Arts Inc. 211,750
FIBER OPTICS -- 1.3%
4,500 C-COR.net Corp. 176,062
2,500 Harmonic Inc. 184,531
1,600 JDS Uniphase Corp. 166,000
----------
526,593
FOOD - MISCELLANEOUS/DIVERSIFIED -- 1.3%
20,000 The Hain Food Group, Inc. 536,250
HUMAN RESOURCES -- 1.5%
12,000 Korn/Ferry International 318,000
8,100 Manpower Inc.(1) 286,031
----------
604,031
IDENTIFICATION SYSTEM/DEVELOPMENT -- 2.1%
15,000 Symbol Technologies, Inc.(1) 836,250
INDEPENDENT POWER PRODUCER -- 1.0%
4,300 Calpine Corp. 393,450
INSTRUMENTS - CONTROLS -- 1.0%
6,750 Microchip Technology Inc. 418,922
INSTRUMENTS - SCIENTIFIC -- 2.6%
6,000 Millipore Corp.(1) 430,125
6,400 Waters Corp. 608,000
----------
1,038,125
</TABLE>
18 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 21
ING MID CAP GROWTH FUND (continued)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
INTERNET CONTENT -- 0.3%
2,100 Go2Net, Inc. $ 124,950
INTERNET SOFTWARE -- 4.2%
1,600 Inktomi Corp. 246,300
10,000 Macromedia, Inc. 870,000
10,000 Open Market, Inc. 103,125
7,600 RealNetworks, Inc. 361,950
2,400 Vignette Corp. 115,650
----------
1,697,025
LIFE/HEALTH INSURANCE -- 0.4%
7,300 Protective Life Corp.(1) 173,831
MACHINERY - GENERAL INDUSTRIES -- 0.9%
7,000 Dover Corp.(1) 355,688
MACHINERY - PRINT TRADE -- 1.6%
11,000 Zebra Technologies Corp. -- A Shares 627,000
MEDICAL - BIOMEDICAL/GENETIC -- 3.0%
2,500 Affymetrix, Inc. 337,656
7,800 Biogen, Inc. 458,737
9,000 Digene Corp. 383,625
----------
1,180,018
MEDICAL - DRUGS -- 2.6%
23,250 IVAX Corp. 636,469
13,500 Jones Pharma Inc.(1) 388,968
----------
1,025,437
MEDICAL - HOSPITALS -- 0.8%
12,000 Tenet Healthcare Corp. 306,000
MEDICAL INSTRUMENTS -- 1.2%
4,600 ArthroCare Corp. 468,625
MEDICAL PRODUCTS -- 1.9%
6,000 MiniMed Inc. 737,625
OIL COMPANIES - EXPLORATION & PRODUCTION -- 1.7%
12,500 EOG Resources, Inc.(1) 310,937
20,000 Union Pacific Resources Group Inc.(1) 383,750
----------
694,687
POWER CONVERSION/SUPPLY EQUIPMENT -- 1.9%
22,000 American Power Conversion Corp. 776,875
PRINTERS & RELATED PRODUCTS -- 3.4%
12,500 Electronics for Imaging, Inc. 653,125
6,000 Lexmark International Group, Inc. -- A Shares 708,000
----------
1,361,125
PRINTING - COMMERCIAL -- 0.6%
7,400 Valassis Communications, Inc. 252,062
PUBLISHING - NEWSPAPERS -- 0.7%
6,800 The New York Times Co. -- A Shares(1) 280,075
RETAIL - APPAREL/SHOE -- 1.3%
15,000 Pacific Sunwear of California, Inc. 510,937
RETAIL - CONSUMER ELECTRONIC -- 2.1%
14,000 Circuit City Stores-Circuit City Group(1) 823,375
RETAIL - DISCOUNT -- 0.8%
9,000 BJ's Wholesale Club, Inc. 318,938
STEEL - PRODUCERS -- 1.0%
8,500 Lone Star Technologies, Inc. 392,062
TELECOMMUNICATION EQUIPMENT -- 8.3%
17,000 ADC Telecommunications, Inc. 1,032,750
10,000 CommScope, Inc. 475,000
9,500 Comverse Technology, Inc. 847,281
3,500 Plantronics, Inc. 309,750
10,000 Scientific-Atlanta, Inc.(1) 650,625
----------
3,315,406
TELEPHONE - LOCAL -- 0.6%
2,500 Telephone & Data Systems, Inc.(1) 255,000
TRANSPORTATIONS - SERVICES -- 1.9%
8,500 C.H. Robinson Worldwide, Inc.(1) 425,000
7,400 Expeditors International Washington, Inc.(1) 316,350
----------
741,350
WIRELESS EQUIPMENT -- 2.3%
3,000 Proxim, Inc. 230,812
10,000 SBA Communications Corp. 406,250
13,000 Spectrasite Holdings, Inc. 273,000
----------
910,062
TOTAL COMMON STOCK
(Cost -- $27,941,801) $39,314,860
REPURCHASE AGREEMENT -- 1.6%
$639,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity --
$639,306; (Fully collateralized by Federal
Home Loan Bank, 6.390% due 2/7/2001;
Market value -- $652,457) (Cost -- $639,000) $ 639,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $28,580,801)(2) $39,953,860
</TABLE>
1. Income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 19
<PAGE> 22
April 30, 2000 (unaudited)
SCHEDULE OF INVESTMENTS
ING LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
--------- -----
<S> <C>
COMMON STOCK -- 96.6%
ADVERTISING AGENCIES -- 4.3%
19,900 The Interpublic Group of Cos., Inc. $ 815,900
20,000 Omnicom Group Inc. 1,821,250
20,600 Young & Rubicam Inc. 1,147,163
---------
3,784,313
APPLICATIONS SOFTWARE -- 4.6%
49,900 Microsoft Corp.(1) 3,480,525
4,400 Siebel Systems, Inc.(1) 540,650
---------
4,021,175
BREWERY -- 1.3%
16,100 Anheuser-Busch Cos., Inc. 1,136,056
CELLULAR TELECOMMUNICATIONS -- 1.4%
21,600 Sprint Corp. (PCS Group)(1) 1,188,000
CIRCUITS -- 0.6%
9,400 Linear Technology Corp. 536,975
COMPUTERS - MEMORY DEVICES -- 2.8%
14,200 EMC Corp./Mass(1) 1,972,912
4,100 VERITAS Software Corp.(1) 439,789
---------
2,412,701
COMPUTERS - MICRO -- 3.8%
10,100 Hewlett-Packard Co. 1,363,500
21,500 Sun Microsystems, Inc.(1) 1,976,656
---------
3,340,156
DIVERSIFIED FINANCIAL SERVICES -- 6.3%
57,500 Citigroup Inc. 3,417,656
27,600 Morgan Stanley Dean Witter & Co. 2,118,300
---------
5,535,956
DIVERSIFIED MANUFACTURING OPERATIONS -- 5.7%
31,600 General Electric Co. 4,969,100
ELECTRIC - GENERATION -- 1.8%
17,700 The AES Corp.(1) 1,591,894
ELECTRONIC COMPONENTS - SEMICONDUCTOR -- 11.5%
19,300 Applied Materials, Inc.(1) 1,964,981
2,100 Broadcom Corp. -- A Shares(1) 361,988
25,500 Intel Corp. 3,233,719
5,400 KLA-Tencor Corp.(1) 404,325
8,400 Novellus Systems, Inc.(1) 560,175
15,000 Texas Instruments Inc. 2,443,125
14,200 Xilinx, Inc.(1) 1,040,150
---------
10,008,463
FIBER OPTICS -- 2.5%
4,900 Corning Inc. 967,750
9,100 JDS Uniphase Corp.(1) 944,125
9,200 Metromedia Fiber Network, Inc. -- A Shares(1) 284,050
---------
2,195,925
FINANCE - CREDIT CARD -- 2.9%
17,000 American Express Co. 2,551,062
FINANCE - INVESTMENT BANKERS/BROKERS -- 0.8%
15,000 The Charles Schwab Corp. 667,500
FOOD - WHOLESALE/DISTRIBUTION -- 1.4%
33,600 SYSCO Corp. 1,264,200
INDEPENDENT POWER PRODUCER -- 0.7%
6,500 Calpine Corp.(1) 594,750
INTERNET CONTENT -- 1.3%
8,900 Yahoo! Inc.(1) 1,159,225
INTERNET SOFTWARE -- 1.2%
16,800 America Online, Inc.(1) 1,004,850
MEDICAL - BIOMEDICAL/GENETIC -- 1.1%
6,900 Biogen, Inc.(1) 405,806
4,700 Genentech, Inc.(1) 549,900
---------
955,706
MEDICAL - DRUGS -- 6.4%
27,300 Bristol-Myers Squibb Co. 1,431,544
54,600 Pfizer Inc. 2,300,025
15,900 Warner-Lambert Co. 1,809,619
---------
5,541,188
MEDICAL INSTRUMENTS -- 1.7%
29,300 Medtronic, Inc. 1,521,769
MEDICAL PRODUCTS -- 2.0%
20,900 Johnson & Johnson 1,724,250
METAL - ALUMINUM -- 0.7%
9,600 Alcoa Inc. 622,800
MONEY CENTER BANKS -- 1.5%
30,800 The Bank of New York Co., Inc. 1,264,725
MULTI-LINE INSURANCE -- 3.1%
24,450 American International Group, Inc. 2,681,859
NETWORKING PRODUCTS -- 4.7%
58,700 Cisco Systems, Inc.(1) 4,069,561
OIL COMPANIES - EXPLORATION & PRODUCTION -- 1.0%
11,000 Anadarko Petroleum Corp. 477,813
8,500 Apache Corp. 411,719
---------
889,532
OIL COMPANIES - INTEGRATED -- 2.5%
27,800 Exxon Mobil Corp. 2,159,713
RETAIL - BUILDING PRODUCTS -- 1.7%
27,200 The Home Depot, Inc. 1,524,900
RETAIL - DISCOUNT -- 3.0%
47,900 Wal-Mart Stores, Inc. 2,652,463
RETAIL - RESTAURANTS -- 2.1%
47,500 McDonald's Corp. 1,810,937
SOFTWARE TOOLS -- 0.7%
6,300 Mercury Interactive Corp.(1) 567,000
SUPER-REGIONAL BANKS - U.S. -- 3.0%
63,200 Wells Fargo & Co. 2,595,150
TELECOMMUNICATION EQUIPMENT -- 2.5%
6,200 Comverse Technology, Inc.(1) 552,962
26,800 Lucent Technologies Inc. 1,666,625
---------
2,219,587
TELECOMMUNICATION SERVICES -- 0.9%
6,350 Allegiance Telecom, Inc.(1) 449,262
14,100 McLeodUSA Inc. -- A Shares(1) 352,500
---------
801,762
TELEPHONE - INTEGRATED -- 2.4%
37,900 MCI WorldCom, Inc.(1) 1,722,081
4,000 NEXTLINK Communications, Inc. -- A Shares(1) 337,250
---------
2,059,331
TRANSPORTATION - SERVICES -- 0.7%
9,200 United Parcel Service, Inc. -- B Shares 611,800
TOTAL COMMON STOCK
(Cost -- $72,481,150) $84,236,334
REPURCHASE AGREEMENT -- 3.4%
$2,955,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $2,956,413;
(Fully collateralized by Federal Home Loan Bank,
6.372% due 2/7/2001; Market value -- $3,016,317)
(Cost -- $2,955,000) $ 2,955,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $75,436,150)(2) $87,191,334
</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 Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 23
ING TAX EFFICIENT EQUITY FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
--------- -----
<S> <C>
COMMON STOCK -- 91.0%
AEROSPACE/DEFENSE-EQUIPMENT -- 1.6%
19,800 The B.F. Goodrich Co. $ 631,125
3,600 General Dynamics Corp. 210,600
3,794 United Technologies Corp. 235,939
----------
1,077,664
AIRLINES -- 0.4%
7,300 AMR Corp.(1) 248,656
APPLICATIONS SOFTWARE -- 1.6%
14,800 Microsoft Corp.(1) 1,032,300
AUTO-CARS/LIGHT TRUCKS -- 2.7%
15,000 Ford Motor Co. 820,313
10,200 General Motors Corp. 954,975
----------
1,775,288
BEVERAGES - NON-ALCOHOLIC -- 0.4%
4,900 The Coca-Cola Co. 230,606
BUILDING & CONSTRUCTION PRODUCTS - MISCELLANEOUS -- 0.1%
2,200 USG Corp. 91,850
BUILDING PRODUCT - AIR & HEATING -- 0.6%
10,300 American Standard Cos. Inc.(1) 422,300
CHEMICALS - SPECIALTY -- 0.2%
6,400 Arch Chemicals, Inc. 126,400
COMPUTERS - MICRO -- 4.8%
6,100 Hewlett-Packard Co. 823,500
11,100 International Business Machines Corp. 1,239,037
12,000 Sun Microsystems, Inc.(1) 1,103,250
----------
3,165,787
CONTAINERS - METAL/GLASS -- 0.8%
38,900 Owens-Illinois, Inc.(1) 525,150
CONTAINERS - PAPER/PLASTIC -- 0.6%
35,600 Packaging Corp. of America(1) 422,750
COSMETICS & TOILETRIES -- 2.8%
10,800 Colgate-Palmolive Co. 616,950
13,600 Kimberly-Clark Corp. 789,650
7,700 The Procter & Gamble Co. 459,113
----------
1,865,713
CRUISE LINES -- 0.3%
8,000 Royal Caribbean Cruises Ltd. 166,500
DATA PROCESSING/MANAGEMENT -- 1.1%
14,500 First Data Corp. 705,969
DISTRIBUTION/WHOLESALE -- 0.6%
7,400 Costco Wholesale Corp.(1) 400,062
DIVERSIFIED FINANCIAL SERVICES -- 2.8%
22,400 Household International, Inc. 935,200
15,250 Citigroup Inc. 906,422
----------
1,841,622
DIVERSIFIED MANUFACTURING OPERATIONS -- 4.7%
6,200 Eaton Corp. 520,800
13,200 General Electric Co. 2,075,700
11,000 Tyco International Ltd. 505,313
----------
3,101,813
ELECTRONIC COMPONENTS - MISCELLANEOUS -- 1.7%
4,500 Flextronics International Ltd.(1) 316,125
16,800 Solectron Corp.(1) 786,450
----------
1,102,575
ELECTRONIC COMPONENTS - SEMICONDUCTOR -- 9.7%
15,000 Analog Devices, Inc.(1) 1,152,187
13,000 Applied Materials, Inc.(1) 1,323,563
15,800 Intel Corp. 2,003,638
6,200 Teradyne, Inc.(1) 682,000
7,200 Texas Instruments Inc. 1,172,700
----------
6,334,088
ELECTRONIC PARTS DISTRIBUTION -- 3.6%
32,600 Arrow Electronics, Inc. 1,428,287
11,800 Avnet, Inc. 927,775
----------
2,356,062
ENTERPRISE SOFTWARE/SERVICES -- 2.0%
9,000 Computer Associates International, Inc. 502,313
12,600 Compuware Corp.(1) 158,287
8,100 Oracle Corp.(1) 647,494
----------
1,308,094
FINANCE - INVESTMENT BANKERS/BROKERS -- 0.5%
3,300 Merrill Lynch & Co., Inc. 336,394
FINANCE - MORTGAGE LOAN/BANKER -- 1.8%
12,100 Countrywide Credit Industries, Inc. 334,263
13,900 Fannie Mae 838,344
----------
1,172,607
FOOD - MISCELLANEOUS/DIVERSIFIED -- 1.1%
14,400 Bestfoods 723,600
INSTRUMENTS - CONTROLS -- 0.9%
12,600 Parker-Hannifin Corp. 585,900
INTERNET SOFTWARE -- 0.2%
5,100 PSINet Inc.(1) 118,256
MACHINERY TOOLS & RELATED PRODUCTS -- 1.6%
16,400 The Black & Decker Corp. 689,825
12,400 Kennametal Inc. 356,500
----------
1,046,325
MEDICAL - DRUGS -- 4.7%
12,000 Abbott Laboratories 461,250
7,800 Bristol-Myers Squibb Co. 409,013
9,600 Eli Lilly & Co. 742,200
12,200 Merck & Co., Inc. 847,900
14,700 Pfizer Inc. 619,237
----------
3,079,600
MEDICAL INFORMATION SYSTEM -- 0.3%
11,600 IMS Health Inc. 197,925
MEDICAL PRODUCTS -- 2.4%
12,200 Baxter International Inc. 794,525
9,600 Johnson & Johnson 792,000
----------
1,586,525
METAL - ALUMINUM -- 1.1%
11,000 Alcoa Inc. 713,625
MONEY CENTER BANKS -- 2.5%
20,300 Bank of America Corp. 994,700
9,000 The Chase Manhattan Corp. 648,563
----------
1,643,263
MULTIMEDIA -- 1.7%
9,300 CBS Corp.(1) 546,375
6,100 Time Warner Inc. 548,619
----------
1,094,994
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 21
<PAGE> 24
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING TAX EFFICIENT EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
--------- -----
<S> <C>
NETWORKING PRODUCTS -- 2.5%
5,700 3Com Corp.(1) $ 224,794
20,000 Cisco Systems, Inc.(1) 1,386,563
----------
1,611,357
OIL - FIELD SERVICES -- 1.3%
9,000 Halliburton Co. 397,687
5,900 Schlumberger Ltd. 451,719
----------
849,406
OIL COMPANIES - INTEGRATED -- 6.0%
5,300 Chevron Corp. 451,162
47,210 Conoco Inc. -- B Shares 1,174,349
10,825 Exxon Mobil Corp. 840,967
13,900 Texaco Inc. 688,050
24,900 Unocal Corp. 804,581
----------
3,959,109
PAPER & RELATED PRODUCTS -- 1.0%
5,200 Bowater Inc. 286,000
9,752 International Paper Co. 358,386
----------
644,386
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.8%
14,000 American Power Conversion Corp.(1) 494,375
RETAIL - BUILDING PRODUCTS -- 1.1%
13,200 The Home Depot, Inc. 740,025
RETAIL - CONSUMER ELECTRONICS -- 0.4%
4,900 Tandy Corp. 279,300
RETAIL - DISCOUNT -- 1.6%
20,400 Consolidated Stores Corp.(1) 253,725
14,000 Wal-Mart Stores, Inc. 775,250
----------
1,028,975
RETAIL - DRUG STORE -- 0.2%
24,200 Rite Aid Corp.(1) 121,000
RETAIL - MAJOR DEPARTMENT STORE -- 0.3%
18,500 Saks Inc.(1) 211,594
RETAIL - RESTAURANTS -- 1.1%
19,000 McDonald's Corp. 724,375
SUPER-REGIONAL BANKS - U.S. -- 2.8%
12,200 Bank One Corp. 372,100
9,500 First Union Corp. 302,812
21,900 FleetBoston Financial Corp. 776,081
21,000 KeyCorp 388,500
----------
1,839,493
TELECOMMUNICATION EQUIPMENT -- 2.1%
16,130 Lucent Technologies Inc. 1,003,084
4,300 Telefonaktiebolaget LM Ericsson AB --
Sponsored ADR 380,281
----------
1,383,365
TELEPHONE - INTEGRATED -- 3.6%
11,800 AT&T Corp. 550,913
7,700 GTE Corp. 521,675
11,700 MCI WorldCom Inc.(1) 531,619
17,100 SBC Communications Inc. 749,194
----------
2,353,401
TELEPHONE - LOCAL -- 0.8%
8,600 Bell Atlantic Corp. 509,550
TOBACCO -- 0.2%
7,400 Philip Morris Cos. Inc. 161,875
TRANSPORTATIONS - RAIL -- 0.2%
5,300 Burlington Northern Santa Fe Corp. 127,862
TRANSPORTATIONS - SERVICES -- 1.1%
11,000 United Parcel Service, Inc. -- B Shares 731,500
TRANSPORTATIONS - TRUCK -- 1.1%
25,100 CNF Transportation Inc. 701,231
WIRELESS EQUIPMENT -- 0.9%
3,600 Motorola, Inc. 428,625
7,500 Nextel Partners, Inc. -- A Shares(1) 164,531
----------
593,156
TOTAL COMMON STOCK
(Cost -- $48,965,611) $59,665,598
REPURCHASE AGREEMENT -- 9.0%
$5,879,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $5,881,812;
(Fully collateralized by Federal Home Loan Bank,
6.390% due 2/7/2001; Market value -- $5,998,563)
(Cost -- $5,879,000) $ 5,879,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $54,844,611)(2) $65,544,598
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipts.
See Notes to Financial Statements.
22 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 25
ING GROWTH & INCOME FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
--------- -----
<S> <C>
COMMON STOCK -- 96.6%
APPLICATIONS SOFTWARE -- 2.9%
19,300 Microsoft Corp.(1) $1,346,175
AUTO - CARS/LIGHT TRUCKS -- 1.0%
8,300 Ford Motor Co. 453,906
BATTERIES/BATTERY SYSTEMS -- 0.0%
1 Energizer Holdings, Inc.(1) 17
BEVERAGES - NON-ALCOHOLIC -- 1.5%
19,500 PepsiCo, Inc. 715,406
BREWERY -- 0.8%
5,100 Anheuser-Busch Cos., Inc. 359,869
BUILDING PRODUCTS - CEMENT/AGGREGATE -- 0.7%
5,200 Southdown, Inc. 302,250
CELLULAR TELECOMMUNICATIONS -- 0.4%
6,000 AT&T Wireless Group(1) 190,875
CHEMICALS - DIVERSIFIED -- 0.9%
3,500 The Dow Chemical Co. 395,500
COMPUTERS - MEMORY DEVICES -- 1.9%
6,300 EMC Corp./Mass(1) 875,306
COMPUTERS - MICRO -- 7.3%
11,500 Compaq Computer Corp. 336,375
12,500 Dell Computer Corp.(1) 626,563
4,800 Hewlett-Packard Co. 648,000
8,400 International Business Machines Corp. 937,650
9,000 Sun Microsystems, Inc.(1) 827,437
---------
3,376,025
COSMETICS & TOILETRIES -- 0.9%
7,200 The Procter & Gamble Co. 429,300
DISTRIBUTION/WHOLESALE -- 0.8%
7,000 Costco Wholesale Corp.(1) 378,437
DIVERSIFIED FINANCIAL SERVICES -- 2.9%
15,000 Citigroup Inc. 891,563
6,000 Morgan Stanley Dean Witter & Co. 460,500
---------
1,352,063
DIVERSIFIED MANUFACTURING OPERATIONS -- 7.9%
13,400 General Electric Co. 2,107,150
10,300 Honeywell International Inc. 576,800
8,500 PPG Industries, Inc. 462,187
10,700 Tyco International Ltd. 491,531
---------
3,637,668
E-COMMERCE -- 0.4%
3,300 Amazon.com, Inc.(1) 182,119
ELECTRIC - GENERATION -- 0.8%
4,200 The AES Corp.(1) 377,738
ELECTRIC - INTEGRATED -- 0.9%
12,000 Texas Utilities Co. 404,250
ELECTRONIC COMPONENTS - MISCELLANEOUS -- 0.6%
6,000 Solectron Corp.(1) 280,875
ELECTRONIC COMPONENTS - SEMICONDUCTOR -- 7.1%
7,800 Applied Materials, Inc.(1) 794,138
13,800 Intel Corp. 1,750,012
4,700 Texas Instruments Inc. 765,513
---------
3,309,663
ENTERPRISE SOFTWARE/SERVICES -- 2.4%
14,000 Oracle Corp.(1) 1,119,125
FIBER OPTICS -- 1.2%
1,300 CIENA Corp.(1) 160,712
2,100 Corning Inc. 414,750
---------
575,462
FINANCE - CREDIT CARD -- 0.6%
10,000 MBNA Corp. 265,625
FINANCE - MORTGAGE LOAN/BANKER -- 1.1%
8,300 Fannie Mae 500,594
FOOD - MISCELLANEOUS/DIVERSIFIED -- 1.5%
8,400 Bestfoods 422,100
15,000 Ralston-Ralston Purina Group 265,313
---------
687,413
INTERNET SOFTWARE -- 1.4%
11,000 America Online, Inc.(1) 657,937
LIFE/HEALTH INSURANCE -- 0.8%
10,700 AXA Financial, Inc. 349,088
MEDICAL - DRUGS -- 8.5%
13,500 American Home Products Corp. 758,531
16,000 Bristol-Myers Squibb Co. 839,000
9,000 Eli Lilly & Co. 695,813
3,450 MedImmune, Inc.(1) 551,784
15,500 Merck & Co., Inc. 1,077,250
---------
3,922,378
MEDICAL - HOSPITALS -- 0.9%
16,000 Tenet Healthcare Corp.(1) 408,000
MEDICAL PRODUCTS -- 0.9%
6,500 Baxter International Inc. 423,313
MONEY CENTER BANKS -- 2.2%
13,200 Bank of America Corp. 646,800
5,500 The Chase Manhattan Corp. 396,344
---------
1,043,144
MULTI-LINE INSURANCE -- 1.8%
7,400 American International Group, Inc. 811,687
MULTIMEDIA -- 4.5%
12,000 CBS Corp.(1) 705,000
3,700 Gannett Co., Inc. 236,338
4,400 The McGraw-Hill Cos. Inc. 231,000
10,000 Time Warner Inc. 899,375
---------
2,071,713
NETWORKING PRODUCTS -- 4.1%
27,500 Cisco Systems, Inc.(1) 1,906,523
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 23
<PAGE> 26
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING GROWTH & INCOME FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
--------- -----
<S> <C>
OIL COMPANIES - INTEGRATED -- 3.9%
8,000 Chevron Corp. $ 681,000
14,700 Exxon Mobil Corp. 1,142,006
-----------
1,823,006
OIL - FIELD SERVICES -- 0.9%
9,000 Halliburton Co. 397,687
PIPELINES -- 0.6%
7,100 El Paso Energy Corp. 301,750
RETAIL - BUILDING PRODUCTS -- 1.3%
11,150 The Home Depot, Inc. 625,097
RETAIL - CONSUMER ELECTRONICS -- 0.9%
6,900 Circuit City Stores-Circuit City Group 405,806
RETAIL - DISCOUNT -- 2.3%
19,000 Wal-Mart Stores, Inc. 1,052,125
RETAIL - DRUG STORE -- 1.3%
14,000 CVS Corp. 609,000
SUPER-REGIONAL BANKS - U.S. -- 2.8%
8,000 First Union Corp. 255,000
8,000 PNC Financial Services Group 349,000
17,000 Wells Fargo & Co. 698,063
-----------
1,302,063
TELECOMMUNICATION EQUIPMENT -- 1.7%
13,000 Lucent Technologies Inc. 808,437
TELECOMMUNICATION SERVICES -- 0.8%
12,000 Global Crossing Ltd.(1) 378,000
TELEPHONE - INTEGRATED -- 4.5%
11,000 AT&T Corp. 513,563
11,500 GTE Corp. 779,125
18,000 MCI Worldcom, Inc.(1) 817,875
-----------
2,110,563
TELEPHONE - LOCAL -- 1.2%
11,400 BellSouth Corp. 555,037
TOBACCO -- 0.7%
14,500 Philip Morris Cos. Inc. 317,188
TRANSPORTATIONS - RAIL -- 0.7%
13,100 Burlington Northern Santa Fe Corp. 316,038
WIRELESS EQUIPMENT -- 1.4%
5,500 Motorola, Inc. 654,844
TOTAL COMMON STOCK
(Cost -- $38,313,101) $44,766,085
UNIT INVESTMENT TRUST -- 0.7%
2,200 Standard and Poor's 500 Depositary Receipts
(Cost -- $260,493) $ 319,962
REPURCHASE AGREEMENT -- 2.7%
$1,250,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $1,250,598;
(Fully collateralized by Fannie Mae, 6.100% due
9/14/2001; Market value -- $1,275,506)
(Cost -- $1,250,000) $ 1,250,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $39,823,594)(2) $46,336,047
</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 Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 27
ING HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Ratings(1) Value
--------- ---------- -----
<S> <C> <C>
CORPORATE BONDS -- 96.8%
AIRLINES -- 0.6%
$ 250,000 Amtran, Inc., Senior Notes,
9.625% due 12/15/2005 B+/B2 $ 210,625
BROADCASTING SERVICE/PROGRAM -- 3.7%
1,500,000 Echostar DBS Corp., Senior Notes,
9.250% due 2/1/2006 B/B2 1,462,500
BUILDING - RESIDENTIAL/COMMERCIAL -- 3.2%
1,250,000 US Home Corp., Senior Notes,
7.950% due 3/1/2001 BB+/Ba2 1,246,830
CABLE TV -- 11.8%
500,000 Adelphia Communications Corp.,
Series B, Senior Notes, 9.250%
due 10/1/2002 B+/B1 492,500
1,800,000 Century Communications Corp.,
Senior Discount Notes,
Zero Coupon due 3/15/2003 BB-/B1 1,332,000
2,112,791 CSC Holdings, Inc., Series M,
Payment-in-Kind Preferred Bonds,
11.125% due 4/1/2008 B+/B1 2,287,096
500,000 Rogers Cablesystems Inc.,
Series B, Senior Notes,
10.000% due 3/15/2005 BB+/Ba1 522,500
-----------
4,634,096
CASINO HOTELS -- 2.5%
1,000,000 Park Place Entertainment Corp.,
Senior Subordinated Notes,
9.375% due 2/15/2007(2) BB+/Ba2 992,500
CELLULAR TELECOMMUNICATIONS -- 3.8%
1,000,000 Orange PLC, Senior Notes,
8.750% due 6/1/2006 BBB/Ba3 1,015,000
500,000 Winstar Communications Inc.,
Senior Notes, 12.500%
due 4/15/2008(2) B-/B3 482,500
-----------
1,497,500
CHEMICALS - DIVERSIFIED -- 2.5%
1,000,000 Lyondell Chemical Co., Series A,
Senior Notes, 9.625% due 5/1/2007 BB/Ba3 988,750
CONTAINERS - PAPER/PLASTIC -- 1.9%
750,000 Norampac Inc., Senior Notes,
9.500% due 2/1/2008 BB/B1 757,500
DIVERSIFIED MANUFACTURING OPERATIONS -- 2.5%
500,000 Blount Inc., Senior Subordinated
Notes, 13.000% due 8/1/2009 B-/B3 492,500
500,000 Tenneco Automotive Inc.,
Series B, Senior Subordinated
Notes, 11.625% due 10/15/2009 B+/B2 502,500
-----------
995,000
FIBER OPTICS -- 1.3%
500,000 Williams Communications
Group, Inc., Senior Notes, 10.700%
due 10/1/2007 BB-/B2 512,500
FOOD - RETAIL -- 3.7%
$ 1,000,000 The Kroger Co., Senior Notes,
7.625% due 9/15/2006 BBB-/Baa3 961,413
500,000 Stater Brothers Holdings Inc.,
Senior Notes, 10.750%
due 8/15/2006 B+/B2 498,750
-----------
1,460,163
GAMBLING (NON-HOTEL) -- 1.2%
500,000 Horseshoe Gaming Holdings Corp.,
Series B, Senior Subordinated
Notes, 8.625% due 5/15/2009 B+/B2 471,250
HOME FURNISHINGS -- 1.2%
500,000 Sleepmaster LLC, Series B,
Senior Subordinated Notes,
11.000% due 5/15/2009 B-/B3 478,750
INDUSTRIAL -- 2.5%
1,000,000 O'Sullivan Industries Inc., Units,
13.375% due 10/15/2009(2) B-/B3 975,000
MEDICAL - HOSPITALS -- 1.1%
1,250,000 Rural/Metro Corp., Senior Notes,
7.875% due 3/15/2008 CCC/B3 443,750
METAL - ALUMINUM -- 2.5%
1,000,000 Kaiser Aluminum and Chemicals,
Senior Notes, 9.875%
due 2/15/2002 B/B1 975,000
MISCELLANEOUS MANUFACTURER -- 3.0%
250,000 Advanced Glassfiber Yarns LLC,
Senior Subordinated Notes,
9.875% due 1/15/2009 B/B2 225,000
Westinghouse Air Brake Co.,
Senior Notes:
250,000 9.375% due 6/15/2005 B+/Ba3 241,875
750,000 Series B2, 9.375% due 6/15/2005 B+/Ba3 725,625
-----------
1,192,500
NON-HAZARDOUS WASTE DISPOSAL -- 0.4%
250,000 Allied Waste North America, Inc.,
Series B, Senior Subordinated
Notes, 10.000% due 8/1/2009 B+/B2 170,625
OIL COMPANIES - EXPLORATION & PRODUCTION -- 7.6%
Gulf Canada Resources Ltd.,
Senior Notes:
1,025,000 8.375% due 11/15/2005 BBB-/Ba1 1,009,625
1,000,000 8.350% due 8/1/2006 BBB-/Ba1 985,000
1,000,000 Nuevo Energy Co., Series B,
Senior Subordinated Notes,
9.500% due 6/1/2008 B+/B1 987,500
-----------
2,982,125
OIL & GAS DRILLING -- 3.7%
1,000,000 Parker Drilling Co., Series D,
Senior Notes, 9.750%
due 11/15/2006 B+/B1 945,000
500,000 Pride International, Inc.,
Senior Notes, 10.000%
due 6/1/2009 BB/Ba3 503,750
-----------
1,448,750
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 25
<PAGE> 28
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING HIGH YIELD BOND FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Ratings(1) Value
--------- ---------- -----
<S> <C> <C>
RACETRACKS -- 1.2%
$ 500,000 Speedway Motorsports Inc., Series D,
Senior Subordinated Notes,
8.500% due 8/15/2007 B+/Ba3 $ 471,250
RADIO -- 3.8%
1,000,000 Chancellor Media Corp., Series B,
Senior Subordinated Notes,
8.125% due 12/15/2007 B/B1 1,001,250
500,000 Spanish Broadcasting System, Inc.,
Senior Subordinated Notes,
9.625% due 11/1/2009 B-/B3 492,500
----------
1,493,750
RETAIL - DISCOUNT -- 4.8%
1,000,000 Ames Department Stores, Inc.,
Senior Notes, 10.000%
due 4/15/2006 B+/B1 930,000
1,000,000 Kmart Corp., Notes,
8.375% due 12/1/2004 BB+/Baa3 970,414
----------
1,900,414
STEEL-PRODUCERS -- 5.0%
1,000,000 AK Steel Corp., Senior Notes,
9.125% due 12/15/2006 BB/Ba2 986,250
1,000,000 The LTV Corp., Senior Notes,
11.750% due 11/15/2009(2) BB-/Ba3 990,000
----------
1,976,250
TELECOMMUNICATION SERVICES -- 14.8%
1,400,000 Global Crossing Holdings Ltd.,
Payment-in-Kind Preferred Bonds,
10.500% due 12/1/2008 B+/B1 1,379,000
1,500,000 GT Group Telecom Inc.,
Units, Step Coupon to 13.250%
due 2/1/2010(2) CCC+/Caa1 810,000
2,000,000 Hyperion Telecommunications,
Inc., Series B, Senior Discount
Notes, Step Coupon to 13.000%
due 4/15/2003 B+/B3 1,865,000
1,000,000 Leap Wireless International, Inc.,
Units, 12.500% due 4/15/2010(2) CCC/Caa2 968,750
1,000,000 McLeodUSA Inc., Senior Discount
Notes, Step Coupon to 10.500%
due 3/1/2007 B+/B1 800,000
----------
5,822,750
TRANSPORTATION - MARINE -- 1.0%
500,000 Sea Containers Ltd., Senior Notes,
10.750% due 10/15/2006 BB-/Ba3 380,000
TRANSPORTATION - SERVICES -- 2.4%
1,000,000 RailWorks Corp., Senior
Subordinated Notes, 11.500%
due 4/15/2009 B/B3 950,000
TRANSPORTATION - TRUCK -- 1.8%
750,000 North American Van Lines Inc.,
Senior Subordinated Notes,
13.375% due 12/1/2009(2) B-/B3 708,750
WIRELESS EQUIPMENT -- 1.3%
$ 1,000,000 Spectrasite Holdings, Inc., Senior
Discount Notes, 12.875%
due 3/15/2010(2) B-/B3 522,500
TOTAL CORPORATE BONDS
(Cost -- $39,169,643) $38,121,378
REPURCHASE AGREEMENT -- 3.2%
1,276,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity --
$1,276,610; (Fully collateralized by
Fannie Mae, 6.100% due 9/14/2001;
Market value -- $1,305,401)
(Cost -- $1,276,000) $ 1,276,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $40,445,643)(3) $39,397,378
</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 $6,450,000 in market value or 16.2% of net assets.
3. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
26 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 29
ING INTERMEDIATE BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Ratings(1) Value
--------- ---------- -----
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 16.2%
U.S. Treasury Bonds:
$ 225,000 9.125% due 5/15/2018 NR/NR $ 292,149
340,000 5.250% due 2/15/2029 NR/NR 298,881
2,590,000 6.125% due 8/15/2029 NR/NR 2,597,286
-----------
3,188,316
U.S. Treasury Notes:
1,000,000 4.250% due 11/15/2003 NR/NR 928,125
1,810,000 6.500% due 2/15/2010 NR/NR 1,846,767
-----------
2,774,892
TOTAL U.S. TREASURY OBLIGATIONS
(Cost -- $5,999,815) $ 5,963,208
U.S. GOVERNMENT AGENCIES -- 27.7%
Fannie Mae Conventional Loan:
1,350,990 Pool #252707,
6.500% due 9/1/2014 NR/Aaa $ 1,294,308
1,355,019 Pool #252870,
7.000% due 11/1/2014 NR/Aaa 1,324,121
1,173,937 Pool #459764,
6.500% due 4/1/2029 NR/Aaa 1,096,370
750,001 Pool #484534,
6.500% due 5/1/2029 NR/Aaa 700,445
750,000 Pool #492741,
6.000% due 5/1/2029 NR/Aaa 679,679
597,267 Pool #517081,
7.000% due 10/1/2029 NR/Aaa 571,678
1,000,000 Pool #536618,
7.500% due 4/1/2030 NR/Aaa 979,010
500,000 TBA, 8.000% due 5/15/2030 NR/Aaa 499,218
-----------
7,144,829
1,000,000 Federal Home Loan Bank,
5.125% due 9/15/2003 NR/Aaa 939,177
Government National Mortgage
Association:
174,953 Pool #271676,
10.000% due 3/15/2019 NR/Aaa 186,417
203,814 Pool #291879,
10.000% due 1/15/2021 NR/Aaa 217,138
275,927 Pool #297548,
10.000% due 1/15/2021 NR/Aaa 293,966
259,529 Pool #299577,
10.000% due 1/15/2021 NR/Aaa 276,496
696,375 Pool #507655,
7.000% due 9/15/2029 NR/Aaa 670,318
-----------
1,644,335
500,000 Tennessee Valley Authority,
Series C, 6.000% due 3/15/2013 NR/Aaa 442,347
TOTAL U.S. GOVERNMENT AGENCIES
(Cost -- $10,466,681) $10,170,688
ASSET-BACKED SECURITIES -- 6.7%
AUTOMOBILE -- 2.7%
$1,000,000 Ford Credit Auto Owner Trust,
Series 1999-B, Class C,
6.650% due 10/15/2003 BBB/Baa3 $ 966,165
OTHER -- 4.0%
1,000,000 Garanti Trade Payment Rights
Master Trust, Series 1999-B,
Class 1, 10.810% due 6/15/2004(2) NR/NR 994,570
487,127 Provident Bank Home Equity
Loan Trust, Series 1999-A,
Class A, 6.555% due 12/25/2029 AAA/Aaa 486,164
-----------
1,480,734
TOTAL ASSET-BACKED SECURITIES
(Cost -- $2,462,373) $2,446,899
CORPORATE BONDS -- 45.8%
AEROSPACE/DEFENSE -- 1.3%
500,000 Raytheon Co., Notes,
6.500% due 7/15/2005 BBB-/Baa2 $ 464,957
CABLE TV -- 3.6%
1,000,000 Century Communications Corp.,
Senior Discount Notes,
Zero Coupon due 3/15/2003 BB-/B1 740,000
528,197 CSC Holdings Inc., Series M,
Payment-in-Kind Preferred Bond,
11.125% due 4/1/2008 B+/B1 571,773
-----------
1,311,773
CASINO HOTELS -- 2.7%
1,000,000 Park Place Entertainment,
Senior Subordinated Notes,
9.375% due 2/15/2007(2) BB+/Ba2 992,500
CELLULAR TELECOMMUNICATIONS -- 2.8%
1,000,000 Rogers Cantel Inc., Debentures,
9.375% due 6/1/2008 BB+/Baa3 1,025,000
CHEMICALS - SPECIALTY -- 1.3%
500,000 Praxair, Inc., Notes,
6.900% due 11/1/2006 BBB+/A3 471,552
DIVERSIFIED FINANCIAL SERVICES -- 2.7%
1,000,000 Finova Capital Corp., Notes,
6.250% due 8/15/2000 BBB+/Baa2 996,415
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 27
<PAGE> 30
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING INTERMEDIATE BOND FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Ratings(1) Value
--------- ---------- -----
<S> <C> <C>
ELECTRIC - DISTRIBUTION -- 2.6%
$ 1,000,000 AES Eastern Energy, L.P., Series
1999-A, Pass Through
Certificates, 9.000% due 1/2/2017 BBB-/Ba1 $ 962,085
ELECTRIC - INTEGRATED -- 1.1%
500,000 Duke Energy Corp., Series A,
Senior Notes, 6.000% due 12/1/2028 A+/A1 384,676
FINANCE - INVESTMENT BANKERS/BROKERS -- 2.7%
1,000,000 Lehman Brothers Holdings Inc.,
Series E, Medium Term Notes,
6.900% due 1/29/2001 A/A3 996,228
HOME BUILDERS -- 2.7%
1,000,000 U.S. Home Corp., Senior Notes,
7.950% due 3/1/2001 BB+/Ba2 997,464
MISCELLANEOUS MANUFACTURER -- 2.6%
1,000,000 Westinghouse Air Brake Co.,
Senior Notes, 9.375% due 6/15/2005 B+/Ba3 967,500
NON-HAZARDOUS WASTE DISPOSAL -- 1.3%
500,000 WMX Technologies, Inc., Notes,
6.250% due 10/15/2000 BBB/Ba1 492,066
OIL COMPANIES - EXPLORATION & PRODUCTION -- 1.3%
500,000 Gulf Canada Resources Ltd., Senior
Notes, 8.375% due 11/15/2005 BBB-/Ba1 492,500
REITS-HEALTH CARE -- 2.6%
1,000,000 HRPT Properties Trust,
Class A, Senior Notes,
6.750% due 12/18/2002 BBB/Baa2 953,780
RETAIL - APPAREL/SHOE -- 1.2%
500,000 Saks Inc., Notes, 7.000%
due 7/15/2004 BB+/Baa3 441,249
RETAIL - DISCOUNT -- 3.3%
250,000 Ames Department Stores, Inc.,
Senior Notes, 10.000%
due 4/15/2006 B+/B1 232,500
1,000,000 Kmart Corp., Notes,
8.375% due 12/1/2004 BB+/Baa3 970,414
-----------
1,202,914
TELECOMMUNICATION SERVICES -- 4.0%
500,000 Global Crossing Holdings Ltd.,
Payment-in-Kind Preferred Bond,
10.500% due 12/1/2008 B+/B1 492,500
600,000 Hyperion Telecommunications, Inc.,
Series B, Senior Discount Notes,
Step Coupon to 13.000%
due 4/15/2003 B+/B3 559,500
500,000 McLeodUSA Inc., Senior Discount
Notes, Step Coupon to 10.500%
due 3/1/2007 B+/B1 400,000
-----------
1,452,000
TOBACCO -- 2.3%
$1,000,000 RJ Reynolds Tobacco Holdings,
Inc., Notes, 7.375% due 5/15/2003 BBB-/Baa2 $ 861,953
TRANSPORTATION - AIR FREIGHT -- 2.4%
980,430 Federal Express Corp., Series
1998-1A, Pass Through
Certificates, 6.720%
due 1/15/2022 AAA/Aa2 896,686
TRUCKING & LEASING -- 1.3%
500,000 AMERCO, Senior Notes,
8.800% due 2/4/2005 BBB/Ba1 491,442
TOTAL CORPORATE BONDS
(Cost -- $17,432,351) $16,854,740
REPURCHASE AGREEMENT -- 3.6%
1,336,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $1,336,639;
(Fully collateralized by Fannie Mae, 5.860% due
11/7/2000; Market value -- $1,366,063)
(Cost -- $1,336,000) $ 1,336,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $37,697,220)(3) $36,771,535
</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 $1,987,070 in market value or 6.0% of net assets.
3. Aggregate cost for Federal income tax purposes is substantially the same.
TBA -- To be announced.
See Notes to Financial Statements.
28 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 31
ING NATIONAL TAX-EXEMPT BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Ratings(1) Value
--------- ---------- -----
<S> <C> <C>
MUNICIPAL SECURITIES -- 97.5%
ALASKA -- 4.8%
$1,000,000 Valdez Alaska Marine Terminal
Revenue Reference,
BP Pipelines Inc. Project,
Series A, 5.850% due 8/1/2025 AA+/Aa1 $ 958,580
ARIZONA -- 4.8%
1,000,000 Arizona Health Facilities Authority
Hospital System Revenue,
Phoenix Children's Hospital,
Series A, 6.125% due 11/15/2022 NR/A2 965,640
CALIFORNIA -- 4.9%
1,000,000 California Health Facilities Finance
Authority Revenue, Cedars-Sinai
Medical Center, Series A,
6.125% due 12/1/2024 NR/A2 975,150
COLORADO -- 4.9%
1,000,000 Interlocken Metropolitan District
Colorado Reference, Series A,
5.750% due 12/15/2019 AA/NR 977,500
CONNECTICUT -- 4.9%
1,000,000 Connecticut State General
Obligations, Series B,
5.500% due 11/1/2018 AA/Aa3 984,600
ILLINOIS -- 4.8%
1,000,000 Chicago Illinois Board of
Education, Chicago School
Reform, AMBAC Insured,
5.750% due 12/1/2027 AAA/Aaa 967,210
INDIANA -- 4.7%
1,000,000 Indianapolis Indiana Industrial
Letter of Credit, Public
Improvement Board, Series E,
5.750% due 2/1/2029 AA/NR 945,600
KANSAS -- 4.8%
1,000,000 Wichita Kansas Hospital Revenue
Reference, Facilities Improvement,
Series XI, 6.250% due 11/15/2024 A+/NR 971,280
MASSACHUSETTS -- 4.9%
1,000,000 Massachusetts State Port Authority
Revenue, Series C,
5.750% due 7/1/2029 AA-/Aa3 978,460
NEVADA -- 5.1%
1,000,000 Clark County Nevada School
District Building & Renovation,
Series B, FGIC Insured,
5.750% due 6/15/2002 AAA/Aaa 1,017,280
NEW HAMPSHIRE -- 5.0%
1,000,000 Manchester New Hampshire
Housing & Redevelopment
Authority Revenue, Series A,
5.750% due 1/1/2008 A/Baa3 995,010
NEW YORK -- 13.8%
1,000,000 New York New York General
Obligations, Series H,
5.000% due 3/15/2029 A-/A3 841,330
1,000,000 New York State Mortgage Agency
Revenue AMT, Homeowner Mortgage,
Series 88, 6.250% due 4/1/2030 NR/Aa1 1,010,620
1,000,000 New York State Urban Development
Corp., Subordinate Lien Corporate
Purpose, 5.600% due 7/1/2026 A/A2 931,120
------------
2,783,070
OKLAHOMA -- 9.8%
$1,000,000 Oklahoma State Industrial
Authority Revenue Reference,
Health System Obligation Group,
Series A, MBIA Insured,
6.000% due 8/15/2019 AAA/Aaa 1,001,930
1,000,000 Payne County Oklahoma Economic
Development Authority,
Student Housing Revenue,
Collegiate Housing Foundation,
Series A, 6.375% due 6/1/2030 NR/Baa3 961,210
------------
1,963,140
PENNSYLVANIA -- 5.0%
1,000,000 Allegheny County Pennsylvania
Port Authority Special Revenue,
MBIA Insured,
6.000% due 3/1/2024 AAA/Aaa 1,009,890
TEXAS -- 4.8%
1,000,000 Laredo Texas Independent School
District, General Obligations,
PSF Guaranteed,
5.500% due 8/1/2020 AAA/Aaa 963,840
1,250,000 Virgin Islands Public Finance
Authority Revenue, Gross Receipts
Taxes Loan, Series A,
6.125% due 10/1/2029 A/NR 1,239,825
WASHINGTON -- 4.3%
1,000,000 Seattle Washington Municipal
Light & Power Revenue,
Series B, MBIA Insured,
5.000% due 6/1/2024 AAA/Aaa 862,580
TOTAL MUNICIPAL SECURITIES
(Cost -- $19,718,279) $19,558,655
REPURCHASE AGREEMENT -- 2.5%
509,000 State Street Bank & Trust Co., 5.740% due 5/1/2000; Proceeds at
maturity -- $509,243; (Fully collateralized by Federal Home Loan
Bank, 6.390% due 2/7/2001, Market value -- $520,954) (Cost --
$509,000) $ 509,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $20,227,279)(2) $20,067,655
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Aggregate cost for Federal income tax purposes is substantially the same.
AMBAC -- American Municipal Bond Assurance Corp.
AMT -- Alternative Minimum Tax
FGIC -- Financial Guaranty Insurance Corp.
MBIA -- Municipal Bond Insurance Association Corp.
PSF -- Permanent School Fund
See Notes to Financial Statements.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 29
<PAGE> 32
APRIL 30, 2000 (UNAUDITED)
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.
NR - Indicates that the bond is not rated by Standard & Poor's or Moody's.
30 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 33
Financial Highlights
ING INTERNET FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(2) 10/31/99 4/30/00(2) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $12.67 $10.00 $12.63 $10.00
From investment operations:
Net investment loss (0.12) (0.03) (0.16) (0.03)
Net realized and unrealized gain(3) 5.37 2.70 5.34 2.66
------ ------ ------ ------
Total from investment operations 5.25 2.67 5.18 2.63
------ ------ ------ ------
Distributions paid from capital gain (0.23) -- (0.23) --
------ ------ ------ ------
Net asset value per share, end of period $17.69 $12.67 $17.58 $12.63
NET ASSETS, END OF PERIOD (in thousands) $88,783 $35,798 $55,311 $14,869
Total investment return at net asset value(4,5) 41.20% 26.70% 40.77% 26.30%
Ratios to average net assets:(6)
Net expenses 1.39% 1.54% 2.03% 2.17%
Gross expenses 2.78% 3.35% 3.02% 3.75%
Net investment loss -1.22% -1.15% -1.87% -1.88%
Portfolio turnover rate(5) 53.04% 22.08% 53.04% 22.08%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(1)
throughout each period: 4/30/00(2) 10/31/99 4/30/00(2) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $12.63 $10.00 $12.63 $10.00
From investment operations:
Net investment loss (0.15) (0.03) (0.14) (0.04)
Net realized and unrealized gain(3) 5.34 2.66 5.33 2.67
------ ------ ------ ------
Total from investment operations 5.19 2.63 5.19 2.63
------ ------ ------ ------
Distributions paid from capital gain (0.23) -- (0.23) --
------ ------ ------ ------
Net asset value per share, end of period $17.59 $12.63 $17.59 $12.63
NET ASSETS, END OF PERIOD (in thousands) $27,629 $5,290 $4,680 $1,060
Total investment return at net asset value(4,5) 40.85% 26.30% 40.85% 26.30%
Ratios to average net assets:(6)
Net expenses 2.03% 2.18% 2.03% 2.17%
Gross expenses 3.01% 3.79% 3.02% 3.65%
Net investment loss -1.86% -1.88% -1.87% -1.85%
Portfolio turnover rate(5) 53.04% 22.08% 53.04% 22.08%
</TABLE>
1. Commenced operations on July 1, 1999. 2. Unaudited. 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 43.67% for the six months ended
4/30/00 and 28.83% for the period ended 10/31/99. Total returns would be lower
if part of the Fund's expenses were not waived or reimbursed. 5. Not annualized.
6. Annualized.
FINANCIAL HIGHLIGHTS
ING SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.32 $10.00 $11.26 $10.00
From investment operations:
Net investment loss (0.06) (0.08) (0.07) (0.08)
Net realized and unrealized gain 4.51 1.40 4.44 1.34
------ ------ ------ ------
Total from investment operations 4.45 1.32 4.37 1.26
------ ------ ------ ------
Distributions paid from investment income -- -- -- --
------ ------ ------ ------
Net asset value per share, end of period $15.77 $11.32 $15.63 $11.26
NET ASSETS, END OF PERIOD (in thousands) $46,793 $29,860 $2,804 $761
Total investment return at net asset value(4,5) 39.31% 13.20% 38.81% 12.60%
Ratios to average net assets:(6)
Net expenses 1.35% 1.34% 2.00% 1.99%
Gross expenses 2.39% 2.67% 2.63% 2.97%
Net investment loss -0.77% -0.89% -1.35% -1.64%
Portfolio turnover rate(5) 171.75% 139.12% 171.75% 139.12%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(2)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.26 $10.00 $11.27 $11.24
From investment operations:
Net investment loss (0.08) (0.08) (0.08) (0.09)
Net realized and unrealized gain 4.45 1.34 4.45 0.12
------- ------ ------ ------
Total from investment operations 4.37 1.26 4.37 0.03
------- ------ ------ ------
Distributions paid from investment income -- -- -- --
------- ------ ------ ------
Net asset value per share, end of period $15.63 $11.26 $15.64 $11.27
NET ASSETS, END OF PERIOD (in thousands) $2,657 $423 $1,578 $572
Total investment return at net asset value(4,5) 38.81% 12.60% 38.78% 0.27%
Ratios to average net assets:(6)
Net expenses 2.00% 1.99% 2.00% 1.99%
Gross expenses 2.63% 3.01% 2.63% 2.97%
Net investment loss -1.35% -1.66% -1.38% -1.64%
Portfolio turnover rate(5) 171.75% 139.12% 171.75% 139.12%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class
X shares commenced offering on January 11, 1999. 3. Unaudited. 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
41.55% for the six months ended 4/30/00 and 2.27% for the period ended
10/31/99. Total returns would be lower if part of the Fund's expenses were not
waived or reimbursed. 5. Not annualized. 6. Annualized.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 31
<PAGE> 34
Financial Highlights
ING FOCUS FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $12.54 $10.00 $12.48 $10.00
From investment operations:
Net investment loss (0.01) (0.02) (0.04) (0.03)
Net realized and unrealized gain 1.50 2.56 1.48 2.51
------- ------- ------- ------
Total from investment operations 1.49 2.54 1.44 2.48
------- ------- ------- ------
Distributions paid from capital gain (0.42) -- (0.42) --
------- ------- ------- ------
Net asset value per share, end of period $13.61 $12.54 $13.50 $12.48
NET ASSETS, END OF PERIOD (in thousands) $55,362 $35,783 $4,496 $2,984
Total investment return at net asset value(4,5) 12.03% 25.40% 11.68% 24.80%
Ratios to average net assets:(6)
Net expenses 1.38% 1.34% 2.03% 1.99%
Gross expenses 2.43% 2.60% 2.68% 2.92%
Net investment loss -0.09% -0.25% -0.73% -0.88%
Portfolio turnover rate(5) 40.67% 95.71% 40.67% 95.71%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(2)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $12.47 $10.00 $12.46 $10.85
From investment operations:
Net investment loss (0.04) (0.03) (0.04) (0.05)
Net realized and unrealized gain 1.47 2.50 1.48 1.66
------- ------- ------- ------
Total from investment operations 1.43 2.47 1.44 1.61
------- ------- ------- ------
Distributions paid from capital gain (0.42) -- (0.42) --
------- ------- ------- ------
Net asset value per share, end of period $13.48 $12.47 $13.48 $12.46
NET ASSETS, END OF PERIOD (in thousands) $2,312 $976 $1,833 $1,116
Total investment return at net asset value(4,5) 11.60% 24.70% 11.70% 14.84%
Ratios to average net assets:(6)
Net expenses 2.03% 1.99% 2.02% 2.00%
Gross expenses 2.68% 2.92% 2.67% 2.89%
Net investment loss -0.73% -0.87% -0.72% -0.92%
Portfolio turnover rate(5) 40.67% 95.71% 40.67% 95.71%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class
X shares commenced offering on January 12, 1999. 3. Unaudited. 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
13.93% for the six months ended 4/30/00 and 17.14% for the period ended
10/31/99. Total returns would be lower if part of the Fund's expenses were not
waived or reimbursed. 5. Not annualized. 6. Annualized.
Financial Highlights
ING MID CAP GROWTH FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1)
throughout each period: 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99
<S> <C> <C> <C> <C> <C> <C>
Net asset value per share, beginning of period $10.39 $10.00 $10.33 $10.00 $10.33 $10.00
From investment operations:
Net investment loss (0.06) (0.03) (0.07) (0.05) (0.07) (0.06)
Net realized and unrealized gain (loss) 2.81 0.42 2.76 0.38 2.76 0.39
------- ------- ------ ------ ------ ------
Total from investment operations 2.75 0.39 2.69 0.33 2.69 0.33
------- ------- ------ ------ ------ ------
Distributions paid from investment income -- -- -- -- -- --
------- ------- ------ ------ ------ ------
Net asset value per share, end of period $13.14 $10.39 $13.02 $10.33 $13.02 $10.33
NET ASSETS, END OF PERIOD (in thousands) $36,975 $28,042 $1,456 $653 $926 $391
Total investment return at net asset value(6,7) 26.47% 3.90% 26.04% 3.30% 26.04% 3.30%
Ratios to average net assets:(8)
Net expenses 1.40% 1.35% 2.05% 1.99% 2.05% 1.99%
Gross expenses 2.49% 2.68% 2.73% 2.82% 2.73% 2.82%
Net investment loss -1.01% -0.35% -1.68% -1.42% -1.68% -1.45%
Portfolio turnover rate(7) 43.07% 41.27% 43.07% 41.27% 43.07% 41.27%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class I Shares(2) Class X Shares(3)
throughout each period: 4/30/00(5) 10/31/99 4/30/00(4) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period N/A $10.27 $10.33 $10.53
From investment operations:
Net investment loss N/A (0.01) (0.08) (0.07)
Net realized and unrealized gain (loss) N/A 0.14 2.77 (0.13)
------- ------ ------ ------
Total from investment operations N/A 0.13 2.69 (0.20)
------- ------ ------ ------
Distributions paid from investment income N/A -- -- --
------- ------ ------ ------
Net asset value per share, end of period N/A $10.40 $13.02 $10.33
NET ASSETS, END OF PERIOD (in thousands) N/A $416 $503 $333
Total investment return at net asset value(6,7) N/A 1.27% 26.04% -1.90%
Ratios to average net assets:(8)
Net expenses N/A 0.80% 2.05% 1.99%
Gross expenses N/A 1.56% 2.74% 2.82%
Net investment loss N/A -0.24% -1.66% -1.38%
Portfolio turnover rate(7) N/A 41.27% 43.07% 41.27%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class
I shares commenced offering on July 29, 1999. 3. Class X shares commenced
offering on January 19, 1999. 4. Unaudited. 5. Class I Shares were fully
redeemed on December 29, 1999. 6. 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 28.56% for the six months
ended 4/30/00 and 0.06% for the period ended 10/31/99. Total returns would be
lower if part of the Fund's expenses were not waived or reimbursed. 7. Not
annualized. 8. Annualized.
32 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 35
FINANCIAL HIGHLIGHTS
ING LARGE CAP GROWTH FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1)
throughout each period: 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99
<S> <C> <C> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.80 $10.00 $11.75 $10.00 $11.74 $10.00
From investment operations:
Net investment loss (0.03) (0.04) (0.07) (0.04) (0.07) (0.03)
Net realized and unrealized gain 1.27 1.84 1.26 1.79 1.26 1.77
------ ------ ------ ------ ------ ------
Total from investment operations 1.24 1.80 1.19 1.75 1.19 1.74
------ ------ ------ ------ ------ ------
Distributions paid from investment income -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Net asset value per share, end of period $13.04 $11.80 $12.94 $11.75 $12.93 $11.74
NET ASSETS, END OF PERIOD (in thousands) $57,889 $37,517 $6,631 $3,900 $15,757 $10,692
Total investment return at net asset value(5,6) 10.51% 18.00% 10.13% 17.50% 10.14% 17.40%
Ratios to average net assets:(7)
Net expenses 1.28% 1.28% 1.93% 1.93% 1.93% 1.93%
Gross expenses 2.17% 2.39% 2.42% 2.69% 2.43% 2.67%
Net investment loss -0.56% -0.41% -1.22% -1.14% -1.22% -1.13%
Portfolio turnover rate(6) 39.26% 61.71% 39.26% 61.71% 39.26% 61.71%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class I Shares(2) Class X Shares(3)
throughout each period: 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.81 $11.12 $11.73 $10.82
From investment operations:
Net investment loss 0.00(8) 0.00(8) (0.07) (0.06)
Net realized and unrealized gain 1.27 0.69 1.25 0.97
------ ------ ------ -------
Total from investment operations 1.27 0.69 1.18 0.91
------ ------ ------ -------
Distributions paid from investment income -- -- -- --
------ ------ ------ -------
Net asset value per share, end of period $13.08 $11.81 $12.91 $11.73
NET ASSETS, END OF PERIOD (in thousands) $130 $51 $6,806 $5,105
Total investment return at net asset value(5,6) 10.75% 6.21% 10.06% 8.41%
Ratios to average net assets:(7)
Net expenses 0.72% 0.77% 1.93% 1.93%
Gross expenses 1.17% 1.49% 2.43% 2.68%
Net investment loss -0.03% -0.08% -1.22% -1.13%
Portfolio turnover rate(6) 39.26% 61.71% 39.26% 61.71%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class
I shares commenced offering on September 27, 1999. 3. Class X shares commenced
offering on January 11, 1999. 4. Unaudited. 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 12.26%
for the six months ended 4/30/00 and 10.58% for the period ended 10/31/99.
Total returns would be lower if part of the Fund's expenses were not waived or
reimbursed. 6. Not annualized. 7. Annualized. 8. Amount represents less than
$0.01.
FINANCIAL HIGHLIGHTS
ING TAX EFFICIENT EQUITY FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.99 $10.00 $11.96 $10.00
From investment operations:
Net investment income (loss) 0.03 0.04 (0.01) (0.01)
Net realized and unrealized gain 1.04 1.95 1.05 1.97
------ ------ ------ ------
Total from investment operations 1.07 1.99 1.04 1.96
------ ------ ------ ------
Distributions paid from investment income (0.05) -- (0.03) --
------ ------ ------ ------
Net asset value per share, end of period $13.01 $11.99 $12.97 $11.96
NET ASSETS, END OF PERIOD (in thousands) $50,048 $45,714 $8,966 $7,059
Total investment return at net asset value(4,5) 8.98% 19.90% 8.73% 19.60%
Ratios to average net assets:(6)
Net expenses 1.30% 1.28% 1.95% 1.95%
Gross expenses 2.23% 2.40% 2.48% 2.66%
Net investment income (loss) 0.49% 0.49% -0.16% -0.14%
Portfolio turnover rate(5) 7.84% 8.51% 7.84% 8.51%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(2)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.92 $10.00 $11.93 $11.08
From investment operations:
Net investment income (loss) (0.01) 0.00(7) (0.01) (0.01)
Net realized and unrealized gain 1.04 1.92 1.04 0.86
------ ------ ------ ------
Total from investment operations 1.03 1.92 1.03 0.85
------ ------ ------ ------
Distributions paid from investment income (0.07) -- 0.00(7) --
------ ------ ------ ------
Net asset value per share, end of period $12.88 $11.92 $12.96 $11.93
NET ASSETS, END OF PERIOD (in thousands) $3,402 $1,222 $3,054 $3,089
Total investment return at net asset value(4,5) 8.64% 19.20% 8.66% 7.67%
Ratios to average net assets:(6)
Net expenses 1.93% 1.97% 1.95% 1.94%
Gross expenses 2.46% 2.64% 2.49% 2.67%
Net investment income (loss) -0.20% -0.14% -0.16% -0.14%
Portfolio turnover rate(5) 7.84% 8.51% 7.84% 8.51%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class
X shares commenced offering on January 11, 1999. 3. Unaudited. 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
10.84% for the six months ended 4/30/00 and 9.82% for the period ended
10/31/99. Total returns would be lower if part of the Fund's expenses were not
waived or reimbursed. 5. Not annualized. 6. Annualized. 7. Amount represents
less than $0.01.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 33
<PAGE> 36
FINANCIAL HIGHLIGHTS
ING GROWTH & INCOME FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 11.42 $ 10.00 $ 11.36 $ 10.00
From investment operations:
Net investment income (loss) 0.00(7) 0.01 (0.03) (0.03)
Net realized and unrealized gain 0.75 1.42 0.72 1.41
---------- ---------- ---------- ----------
Total from investment operations 0.75 1.43 0.69 1.38
---------- ---------- ---------- ----------
Distributions paid from:
Capital gain (0.03) -- (0.03) --
Investment income (0.01) (0.01) -- (0.02)
---------- ---------- ---------- ----------
Total distributions (0.04) (0.01) (0.03) (0.02)
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 12.13 $ 11.42 $ 12.02 $ 11.36
NET ASSETS, END OF PERIOD (in thousands) $ 40,827 $ 34,964 $ 1,900 $ 1,132
Total investment return at net asset value(4,5) 6.52% 14.34% 6.04% 13.79%
Ratios to average net assets:(6)
Net expenses 1.31% 1.28% 1.96% 1.93%
Gross expenses 2.27% 2.37% 2.52% 2.67%
Net investment income (loss) -0.01% 0.14% -0.66% -0.61%
Portfolio turnover rate(5) 27.46% 32.44% 27.46% 32.44%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(2)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 11.38 $ 10.00 $ 11.35 $ 10.67
From investment operations:
Net investment income (loss) (0.03) (0.02) (0.04) (0.03)
Net realized and unrealized gain 0.72 1.40 0.74 0.72
---------- ---------- ---------- ----------
Total from investment operations 0.69 1.38 0.70 0.69
---------- ---------- ---------- ----------
Distributions paid from:
Capital gain (0.03) -- (0.03) --
Investment income -- 0.00(7) -- (0.01)
---------- ---------- ---------- ----------
Total distributions (0.03) 0.00(7) (0.03) (0.01)
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 12.04 $ 11.38 $ 12.02 $ 11.35
NET ASSETS, END OF PERIOD (in thousands) $ 1,680 $ 855 $ 1,943 $ 1,470
Total investment return at net asset value(4,5) 6.03% 13.81% 6.14% 6.51%
Ratios to average net assets:(6)
Net expenses 1.96% 1.93% 1.96% 1.93%
Gross expenses 2.52% 2.68% 2.52% 2.66%
Net investment income (loss) -0.67% -0.61% -0.66% -0.59%
Portfolio turnover rate(5) 27.46% 32.44% 27.46% 32.44%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class X
shares commenced offering on January 12, 1999. 3. Unaudited. 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 8.26% for the six
months ended 4/30/00 and 8.64% for the period ended 10/31/99. Total returns
would be lower if part of the Fund's expenses were not waived or reimbursed. 5.
Not annualized. 6. Annualized. 7. Amount represents less than $0.01.
FINANCIAL HIGHLIGHTS
ING HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 9.96 $ 10.00 $ 9.96 $ 10.00
From investment operations:(4)
Net investment income 0.42 0.67 0.38 0.60
Net realized and unrealized loss (0.19) (0.04) (0.18) (0.05)
---------- ---------- ---------- ----------
Total from investment operations 0.23 0.63 0.20 0.55
---------- ---------- ---------- ----------
Distributions paid from:
Capital gain (0.06) -- (0.06) --
Investment income (0.42) (0.67) (0.39) (0.59)
---------- ---------- ---------- ----------
Total distributions (0.48) (0.67) (0.45) (0.59)
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 9.71 $ 9.96 $ 9.71 $ 9.96
NET ASSETS, END OF PERIOD (in thousands) $ 34,452 $ 30,537 $ 3,071 $ 2,374
Total investment return at net asset value(5,6) 2.31% 6.37% 1.92% 5.57%
Ratios to average net assets:(7)
Net expenses 1.03% 1.00% 1.78% 1.72%
Gross expenses 2.18% 2.32% 2.43% 2.64%
Net investment income 8.55% 7.53% 7.78% 6.90%
Portfolio turnover rate(6) 232.93% 756.40% 232.93% 756.40%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(2)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 9.96 $ 10.00 $ 9.95 $ 10.02
From investment operations:(4)
Net investment income 0.38 0.62 0.39 0.58
Net realized and unrealized loss (0.18) (0.06) (0.19) (0.09)
---------- ---------- ---------- ----------
Total from investment operations 0.20 0.56 0.20 0.49
---------- ---------- ---------- ----------
Distributions paid from:
Capital gain (0.06) -- (0.06) --
Investment income (0.39) (0.60) (0.39) (0.56)
---------- ---------- ---------- ----------
Total distributions (0.45) (0.60) (0.45) (0.56)
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 9.71 $ 9.96 $ 9.70 $ 9.95
NET ASSETS, END OF PERIOD (in thousands) $ 1,356 $ 776 $ 1,006 $ 865
Total investment return at net asset value(5,6) 1.92% 5.67% 1.93% 4.99%
Ratios to average net assets:(7)
Net expenses 1.77% 1.73% 1.78% 1.74%
Gross expenses 2.42% 2.66% 2.43% 2.66%
Net investment income 7.77% 7.01% 7.84% 7.11%
Portfolio turnover rate(6) 232.93% 756.40% 232.93% 756.40%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class X
shares commenced offering on January 11, 1999. 3. Unaudited. 4. Per share
calculation is based on average number of shares outstanding during the period.
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 3.97% for the six months ended 4/30/00 and 7.09% for
the period ended 10/31/99. Total returns would be lower if part of the Fund's
expenses were not waived or reimbursed. 6. Not annualized. 7. Annualized.
34 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 37
FINANCIAL HIGHLIGHTS
ING INTERMEDIATE BOND FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 9.40 $ 10.00 $ 9.40 $ 10.00
From investment operations:(4)
Net investment income 0.30 0.45 0.26 0.40
Net realized and unrealized loss (0.12) (0.60) (0.11) (0.61)
---------- ---------- ---------- ----------
Total from investment operations 0.18 (0.15) 0.15 (0.21)
---------- ---------- ---------- ----------
Distributions paid from investment income (0.30) (0.45) (0.27) (0.39)
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 9.28 $ 9.40 $ 9.28 $ 9.40
NET ASSETS, END OF PERIOD (in thousands) $ 29,187 $ 32,013 $ 1,469 $ 1,958
Total investment return at net asset value(5,6) 1.96% -1.46% 1.58% -2.13%
Ratios to average net assets:(7)
Net expenses 1.00% 0.96% 1.75% 1.70%
Gross expenses 2.03% 2.12% 2.28% 2.39%
Net investment income 6.48% 5.38% 5.69% 4.83%
Portfolio turnover rate(6) 294.77% 431.50% 294.77% 431.50%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class C Shares(1) Class X Shares(2)
throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 9.40 $ 10.00 $ 9.40 $ 9.87
From investment operations:(4)
Net investment income 0.27 0.42 0.26 0.37
Net realized and unrealized loss (0.12) (0.63) (0.11) (0.48)
---------- ---------- ---------- ----------
Total from investment operations 0.15 (0.21) 0.15 (0.11)
---------- ---------- ---------- ----------
Distributions paid from investment income (0.27) (0.39) (0.27) (0.36)
---------- ---------- ---------- ----------
Net asset value per share, end of period $ 9.28 $ 9.40 $ 9.28 $ 9.40
NET ASSETS, END OF PERIOD (in thousands) $ 2,048 $ 1,082 $ 640 $ 1,006
Total investment return at net asset value(5,6) 1.59% -2.10% 1.58% -1.07%
Ratios to average net assets:(7)
Net expenses 1.74% 1.71% 1.75% 1.71%
Gross expenses 2.28% 2.44% 2.28% 2.41%
Net investment income 5.79% 4.94% 5.68% 4.90%
Portfolio turnover rate(6) 294.77% 431.50% 294.77% 431.50%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class X
shares commenced offering on January 11, 1999. 3. Unaudited. 4. Per share
calculation is based on average number of shares outstanding during the period.
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 3.61% for the six months ended 4/30/00 and 0.91% for
the period ended 10/31/99. Total returns would be lower if part of the Fund's
expenses were not waived or reimbursed. 6. Not annualized. 7. Annualized.
FINANCIAL HIGHLIGHTS
ING NATIONAL TAX-EXEMPT BOND FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1)
throughout the period: 4/30/00(2) 4/30/00(2) 4/30/00(2)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value per share, beginning of period $10.00 $10.00 $10.00
From investment operations(3):
Net investment income 0.23 0.20 0.20
Net realized and unrealized loss (0.19) (0.21) (0.19)
------- ----- -----
Total from investment operations 0.04 (0.01) 0.01
------- ----- -----
Distributions paid from investment income (0.23) (0.19) (0.20)
------- ----- -----
Net asset value per share, end of period $9.81 $9.80 $9.81
NET ASSETS, END OF PERIOD (in thousands) $20,211 $63 $63
Total investment return at net asset value(4,5) 0.49% - 0.03% 0.10%
Ratios to average net assets:(6)
Net expenses 0.96% 1.66% 1.69%
Gross expenses 2.19% 2.37% 2.39%
Net investment income 5.02% 4.07% 4.17%
Portfolio turnover rate(5) 9.89% 9.89% 9.89%
</TABLE>
1. Commenced operations on November 8, 1999. 2. Unaudited. 3. Per share
calculation 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 and C shares. Total returns would
be lower if part of the Fund's expenses were not waived or reimbursed. 5. Not
annualized. 6. Annualized.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 35
<PAGE> 38
APRIL 30, 2000 (UNAUDITED)
STATEMENTS OF ASSETS & LIABILITIES
<TABLE>
<CAPTION>
ING ING ING ING
INTERNET SMALL CAP FOCUS MID CAP
FUND GROWTH FUND FUND GROWTH FUND
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost $187,025,487 $44,540,097 $48,377,825 $27,941,801
------------ ----------- ----------- -----------
Investments in securities, at value $171,292,545 $47,687,123 $56,250,307 $39,314,860
Repurchase agreements, at value 4,071,000 6,007,000 9,155,000 639,000
Cash 106,546 56,040 7,162 914
Receivable for investment securities sold -- 63,748 -- 269,960
Receivable for fund shares sold 1,405,832 56,381 28,350 12,925
Dividend and interest receivables 1,947 3,487 38,835 4,041
Prepaid expenses 21,251 21,358 23,433 20,852
------------ ----------- ----------- -----------
Total Assets 176,899,121 53,895,137 65,503,087 40,262,552
LIABILITIES:
Dividend payable -- -- -- --
Payable for investment securities purchased -- -- 1,410,587 362,625
Management fee payable (Note 3) 43,328 20,925 25,959 17,039
Payable for fund shares redeemed 99,049 834 -- --
Distribution fee payable (Note 3) 58,821 7,590 9,564 3,709
Other accrued expenses 295,138 33,318 53,503 19,487
------------ ----------- ----------- -----------
Total Liabilities 496,336 62,667 1,499,613 402,860
NET ASSETS $176,402,785 $53,832,470 $64,003,474 $39,859,692
Composition of Net Assets:
Par value of shares of beneficial interest $ 10,001 $ 3,417 $ 4,708 $ 3,036
Capital paid in excess of par value 153,469,953 37,822,545 53,587,957 30,786,190
Accumulated net investment income (loss) (1,371,697) (232,545) (46,566) (176,722)
Accumulated net realized gain (loss) 40,027,470 13,092,033 2,584,893 (2,125,871)
Net unrealized appreciation (depreciation)
of investments and foreign currencies (15,732,942) 3,147,020 7,872,482 11,373,059
NET ASSETS $176,402,785 $53,832,470 $64,003,474 $39,859,692
Class A Shares
Net Assets $ 88,783,180 $46,793,259 $55,362,016 $36,974,929
Shares Outstanding 5,018,199 2,966,321 4,067,524 2,814,388
Net Asset Value Per Share
(and redemption price) $17.69 $15.77 $13.61 $13.14
Maximum Public Offering Price $18.77(1) $16.73(1) $14.44(1) $13.94(1)
Class B Shares
Net Assets $ 55,310,634 $ 2,803,532 $ 4,496,246 $ 1,456,418
Shares Outstanding 3,146,233 179,373 332,959 111,865
Net Asset Value Per Share(3) $17.58 $15.63 $13.50 $13.02
Class C Shares
Net Assets $ 27,628,918 $ 2,657,362 $ 2,311,852 $ 925,628
Shares Outstanding 1,570,356 170,012 171,443 71,106
Net Asset Value Per Share(4) $17.59 $15.63 $13.48 $13.02
Class I Shares
Net Assets -- -- -- --
Shares Outstanding -- -- -- --
Net Asset Value Per Share (and redemption price) -- -- -- --
Class X Shares
Net Assets $ 4,680,053 $ 1,578,317 $ 1,833,360 $ 502,717
Shares Outstanding 265,996 100,903 136,024 38,622
Net Asset Value Per Share(3) $17.59 $15.64 $13.48 $13.02
</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% CDSL 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% CDSL if shares are redeemed within one year from purchase (See Note 3).
See Notes to Financial Statements.
36 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 39
<TABLE>
<CAPTION>
ING ING ING ING ING ING NATIONAL
LARGE CAP TAX EFFICIENT GROWTH & HIGH YIELD INTERMEDIATE TAX-EXEMPT
GROWTH FUND EQUITY FUND INCOME FUND BOND FUND BOND FUND BOND FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$72,481,150 $48,965,611 $38,573,594 $39,169,643 $36,361,220 $19,718,279
----------- ----------- ----------- ----------- ----------- -----------
$84,236,334 $59,665,598 $45,086,047 $38,121,378 $35,435,535 $19,558,655
2,955,000 5,879,000 1,250,000 1,276,000 1,336,000 509,000
12,456 152 4,604 4,210 12,119 959
-- -- 447,073 -- -- --
86,903 12,820 23,133 19,592 -- --
28,715 46,995 30,721 831,886 528,443 385,548
26,121 24,360 21,452 26,093 27,878 7,352
----------- ----------- ----------- ----------- ----------- -----------
87,345,529 65,628,925 46,863,030 40,279,159 37,339,975 20,461,514
-- -- -- 295,085 194,174 84,931
-- 40,969 439,088 -- 504,212 --
26,191 21,338 14,188 10,652 7,620 2,099
2,594 25,913 10,808 40,834 3,250,064 --
18,009 13,350 7,376 3,348 2,644 80
85,973 56,768 41,158 43,095 36,488 37,144
----------- ----------- ----------- ----------- ----------- -----------
132,767 158,338 512,618 393,014 3,995,202 124,254
$87,212,762 $65,470,587 $46,350,412 $39,886,145 $33,344,773 $20,337,260
$ 6,709 $ 5,037 $ 3,826 $ 4,108 $ 3,594 $ 2,073
75,225,281 53,835,854 39,962,136 41,198,302 35,802,069 20,709,954
(301,130) 52,366 (25,441) 20,101 20,178 --
526,718 877,343 (102,562) (288,101) (1,555,383) (215,143)
11,755,184 10,699,987 6,512,453 (1,048,265) (925,685) (159,624)
$87,212,762 $65,470,587 $46,350,412 $39,886,145 $33,344,773 $20,337,260
$57,889,016 $50,048,000 $40,826,957 $34,452,480 $29,187,140 $20,211,479
4,440,866 3,845,681 3,366,848 3,548,389 3,145,788 2,060,483
$13.04 $13.01 $12.13 $9.71 $9.28 $9.81
$13.84(1) $13.80(1) $12.87(1) $10.19(2) $9.74(2) $10.30(2)
$ 6,630,824 $ 8,966,393 $ 1,900,455 $ 3,070,907 $ 1,469,415 $ 63,114
512,513 691,359 158,053 316,274 158,427 6,441
$12.94 $12.97 $12.02 $9.71 $9.28 $9.80
$15,756,647 $ 3,401,856 $ 1,679,895 $ 1,356,416 $ 2,048,386 $ 62,667
1,218,589 264,040 139,518 139,715 220,739 6,389
$12.93 $12.88 $12.04 $9.71 $9.28 $9.81
$ 130,415 -- -- -- -- --
9,967 -- -- -- -- --
$13.08 -- -- -- -- --
$ 6,805,860 $ 3,054,338 $ 1,943,105 $ 1,006,342 $ 639,832 --
526,981 235,696 161,662 103,730 68,971 --
$12.91 $12.96 $12.02 $9.70 $9.28 --
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 37
<PAGE> 40
FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
ING ING ING
INTERNET SMALL CAP FOCUS
FUND GROWTH FUND FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 150,074 $ 130,830 $ 175,588
Dividend -- 17,729 185,765
Less: foreign withholding tax -- (109) --
----------- ----------- ----------
Total income 150,074 148,450 361,353
EXPENSES:
Management fees (Note 3) 1,114,272 253,475 278,600
Distribution fees (Note 3) 549,363 133,060 148,113
Transfer agent fees (Note 3) 515,536 74,613 102,002
Shareholder services fees (Note 3) 222,884 63,361 69,652
Fund accounting fees 26,888 26,459 23,790
Registration fees 57,023 23,653 25,927
Professional fees 31,256 13,778 15,538
Reports to shareholders 29,353 6,807 8,255
Custodian fees 20,229 10,694 7,143
Other expenses 13,274 5,794 6,852
----------- ----------- ----------
Total expenses 2,580,078 611,694 685,872
----------- ----------- ----------
Expenses waived and reimbursed by Manager and Distributor (Note 3) (1,071,145) (252,192) (277,953)
----------- ----------- ----------
Net expenses 1,508,933 359,502 407,919
NET INVESTMENT INCOME (LOSS) (1,358,859) (211,052) (46,566)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCIES (NOTE 4):
Realized gain (loss) from:
Security transactions 40,381,361 14,672,309 2,620,962
Foreign currency transactions (12,838) (21,493) --
NET REALIZED GAIN (LOSS) 40,368,523 14,650,816 2,620,962
Net change in unrealized appreciation (depreciation) from:
Investments (25,482,307) (2,204,907) 2,523,298
Foreign Currencies -- (6) --
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) (25,482,307) (2,204,913) 2,523,298
Net realized and unrealized gain (loss) on investments and
foreign currencies 14,886,216 12,445,903 5,144,260
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $13,527,357 $12,234,851 $5,097,694
</TABLE>
1. Commenced operations on November 8, 1999.
See Notes to Financial Statements.
38 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 41
<TABLE>
<CAPTION>
ING ING ING ING ING ING ING NATIONAL
MID CAP LARGE CAP TAX EFFICIENT GROWTH & HIGH YIELD INTERMEDIATE TAX-EXEMPT
GROWTH FUND GROWTH FUND EQUITY FUND INCOME FUND BOND FUND BOND FUND BOND FUND(1)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 27,795 $ 73,407 $ 203,021 $ 29,700 $1,876,943 $1,402,134 $573,777
39,347 200,033 339,645 243,600 -- -- --
-- -- -- -- -- -- --
---------- ---------- ----------- ---------- ---------- ---------- --------
67,142 273,440 542,666 273,300 1,876,943 1,402,134 573,777
169,523 287,578 243,229 157,560 127,371 93,805 47,715
86,879 223,887 168,590 110,832 104,481 99,764 50,103
51,264 151,797 115,294 75,170 67,481 62,860 27,963
42,258 95,759 76,022 52,521 48,982 46,888 24,002
23,556 27,403 26,118 27,296 26,290 26,265 24,764
19,776 29,743 23,912 22,728 22,111 23,100 10,051
12,224 16,931 15,846 13,299 14,072 13,102 10,756
4,609 11,130 10,927 6,838 7,257 7,618 4,353
6,915 9,730 7,255 9,192 8,667 6,278 6,562
6,040 12,355 8,221 7,031 6,665 6,814 3,845
---------- ---------- ----------- ---------- ---------- ---------- --------
423,044 866,313 695,414 482,467 433,377 386,494 210,114
---------- ---------- ----------- ---------- ---------- ---------- --------
(179,180) (291,743) (257,447) (191,529) (212,279) (181,356) (117,391)
---------- ---------- ----------- ---------- ---------- ---------- --------
243,864 574,570 437,967 290,938 221,098 205,138 92,723
(176,722) (301,130) 104,699 (17,638) 1,655,845 1,196,996 481,054
(48,912) 1,923,598 884,695 (102,313) (116,961) (316,413) (215,143)
-- -- -- -- -- -- --
(48,912) 1,923,598 884,695 (102,313) (116,961) (316,413) (215,143)
8,180,346 4,473,912 4,288,454 2,619,854 (774,690) (205,053) (159,624)
-- -- -- -- -- -- --
8,180,346 4,473,912 4,288,454 2,619,854 (774,690) (205,053) (159,624)
8,131,434 6,397,510 5,173,149 2,517,541 (891,651) (521,466) (374,767)
$7,954,712 $6,096,380 $5,277,848 $2,499,903 $764,194 $675,530 $106,287
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 39
<PAGE> 42
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ING INTERNET FUND ING SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended
April 30, 2000 Period Ended April 30, 2000 Period Ended
(Unaudited) October 31, 1999(1) (Unaudited) October 31, 1999(2)
------------------------------------ ---------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Net investment income (loss) $ (1,358,859) $ (120,597) $ (211,052) $ (226,461)
Net realized gain (loss) on
investments and foreign
currencies 40,368,523 1,376,324 14,650,816 (1,580,276)
Net change in unrealized
appreciation
(depreciation) (25,482,307) 9,749,365 (2,204,913) 5,351,933
------------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 13,527,357 11,005,092 12,234,851 3,545,196
------------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income
Class A shares -- -- -- --
Class B shares -- -- -- --
Class C shares -- -- -- --
Class I shares -- -- -- --
Class X shares -- -- -- --
------------- ----------- ----------- -----------
-- -- -- --
------------- ----------- ----------- -----------
Capital Gain
Class A shares (919,293) -- -- --
Class B shares (449,840) -- -- --
Class C shares (222,063) -- -- --
Class I shares -- -- -- --
Class X shares (30,566) -- -- --
------------- ----------- ----------- -----------
(1,621,762) -- -- --
------------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS PAID (1,621,762) -- -- --
------------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS
(NOTE 8):
Net proceeds from sale of
shares
Class A shares 99,799,008 31,032,102 17,447,076 27,733,436
Class B shares 58,311,437 12,538,049 2,368,154 720,182
Class C shares 29,079,406 4,757,431 2,295,709 388,119
Class I shares -- -- -- --
Class X shares 4,127,373 855,683 914,090 533,637
------------- ----------- ----------- -----------
191,317,224 49,183,265 23,025,029 29,375,374
------------- ----------- ----------- -----------
Dividend reinvestments
Class A shares 835,449 -- -- --
Class B shares 429,318 -- -- --
Class C shares 214,873 -- -- --
Class I shares -- -- -- --
Class X shares 29,986 -- -- --
------------- ----------- ----------- -----------
1,509,626 -- -- --
------------- ----------- ----------- -----------
Cost of shares repurchased
Class A shares (60,120,994) (2,306,139) (12,409,947) (1,281,046)
Class B shares (18,372,693) (458,465) (405,035) (14,674)
Class C shares (6,407,859) (408,839) (184,741) (2,855)
Class I shares -- -- -- --
Class X shares (444,578) (6,000) (44,598) (12,227)
------------- ----------- ----------- -----------
(85,346,124) (3,179,443) (13,044,321) (1,310,802)
------------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
FROM CAPITAL SHARE
TRANSACTIONS 107,480,726 46,003,822 9,980,708 28,064,572
INCREASE IN NET ASSETS 119,386,321 57,008,914 22,215,559 31,609,768
NET ASSETS:
Beginning of period 57,016,464 7,550 31,616,911 7,143
END OF PERIOD* $176,402,785 $57,016,464 $53,832,470 $31,616,911
*Including net undistributed
(over-distributed) investment
income of: $ (1,371,697) $ -- $ (232,545) $ --
</TABLE>
<TABLE>
<CAPTION>
ING FOCUS FUND
----------------------------------------------------------------------
Six Months Ended
April 30, 2000 Period Ended
(Unaudited) October 31, 1999(2)
--------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
Net investment income (loss) $ (46,566) $ (81,403)
Net realized gain (loss) on
investments and foreign
currencies 2,620,962 1,444,110
Net change in unrealized
appreciation
(depreciation) 2,523,298 5,349,184
------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 5,097,694 6,711,891
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
------------ ------------
-- --
------------ ------------
Capital Gain
Class A shares (1,230,581) --
Class B shares (109,671) --
Class C shares (39,894) --
Class I shares -- --
Class X shares (42,320) --
------------ ------------
(1,422,466) --
------------ ------------
TOTAL DISTRIBUTIONS PAID (1,422,466) --
------------ ------------
CAPITAL SHARE TRANSACTIONS
(NOTE 8):
Net proceeds from sale of
shares
Class A shares 20,095,545 30,105,049
Class B shares 1,837,692 3,195,205
Class C shares 1,603,291 963,946
Class I shares -- --
Class X shares 754,042 1,057,689
------------ ------------
24,290,570 35,321,889
------------ ------------
Dividend reinvestments
Class A shares 1,200,511 --
Class B shares 89,753 --
Class C shares 34,903 --
Class I shares -- --
Class X shares 42,320 --
------------ ------------
1,367,487 --
------------ ------------
Cost of shares repurchased
Class A shares (4,921,332) (823,282)
Class B shares (689,860) (331,601)
Class C shares (408,393) (23,655)
Class I shares -- --
Class X shares (169,098) (3,513)
------------ ------------
(6,188,683) (1,182,051)
------------ ------------
NET INCREASE IN NET ASSETS
FROM CAPITAL SHARE
TRANSACTIONS 19,469,374 34,139,838
INCREASE IN NET ASSETS 23,144,602 40,851,729
NET ASSETS:
Beginning of period 40,858,872 7,143
END OF PERIOD* $64,003,474 $40,858,872
*Including net undistributed
(over-distributed) investment
income of: $ (46,566) $ --
</TABLE>
1. Commenced operations on July 1, 1999.
2. Commenced operations on December 15, 1998.
See Notes to Financial Statements.
40 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 43
<TABLE>
<CAPTION>
ING MID CAP GROWTH FUND ING LARGE CAP GROWTH FUND
--------------------------------------------------------------------------------
Six Months Ended Six Months Ended
April 30, 2000 Period Ended April 30, 2000 Period Ended
(Unaudited) October 31, 1999(2) (Unaudited) October 31, 1999(2)
--------------------------------------- ---------------------------------------
<S> <C> <C> <C>
$ (176,722) $ (91,208) $ (301,130) $ (182,682)
(48,912) (2,076,959) 1,923,598 (1,396,880)
8,180,346 3,192,713 4,473,912 7,281,272
----------- ------------ ----------- -----------
7,954,712 1,024,546 6,096,380 5,701,710
----------- ------------ ----------- -----------
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
----------- ------------ ----------- -----------
-- -- -- --
----------- ------------ ----------- -----------
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
----------- ------------ ----------- -----------
-- -- -- --
----------- ------------ ----------- -----------
-- -- -- --
----------- ------------ ----------- -----------
1,784,736 27,612,489 22,021,893 33,983,244
703,475 646,218 2,816,894 3,743,914
413,997 385,487 5,396,071 10,475,479
17,417 414,531 77,044 49,138
99,145 329,944 1,280,802 4,974,893
----------- ------------ ----------- -----------
3,018,770 29,388,669 31,592,704 53,226,668
----------- ------------ ----------- -----------
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
-- -- -- --
----------- ------------ ----------- -----------
-- -- -- --
----------- ------------ ----------- -----------
(338,696) (559,344) (5,549,012) (1,383,990)
(112,197) (9,976) (552,267) (44,163)
(11,910) (2,855) (1,502,627) (118,613)
(465,744) (3,267) (4,998) --
(21,499) (8,660) (132,832) (123,341)
----------- ------------ ----------- -----------
(950,046) (584,102) (7,741,736) (1,670,107)
----------- ------------ ----------- -----------
2,068,724 28,804,567 23,850,968 51,556,561
10,023,436 29,829,113 29,947,348 57,258,271
29,836,256 7,143 57,265,414 7,143
$39,859,692 $29,836,256 $87,212,762 $57,265,414
$ (176,722) $ -- $ (301,130) $ --
</TABLE>
<TABLE>
<CAPTION>
ING TAX EFFICIENT EQUITY FUND ING GROWTH & INCOME FUND
----------------------------------------------------------------------------------------
Six Months Ended Six Months Ended
April 30, 2000 Period Ended April 30, 2000 Period Ended
(Unaudited) October 31, 1999(2) (Unaudited) October 31, 1999(2)
-------------------------------------- ----------------------------------------------
<S> <C> <C> <C>
$ 104,699 $ 157,443 $ (17,638) $ 29,424
884,695 (7,352) (102,313) 88,071
4,288,454 6,411,533 2,619,854 3,892,599
----------- ------------ ------------ ------------
5,277,848 6,561,624 2,499,903 4,010,094
----------- ------------ ------------ ------------
(204,521) -- (22,892) (36,973)
(19,948) -- -- (403)
(8,313) -- -- (75)
-- -- -- --
(856) -- -- (616)
----------- ------------ ------------ ------------
(233,638) -- (22,892) (38,067)
----------- ------------ ------------ ------------
-- -- (78,779) --
-- -- (3,062) --
-- -- (2,720) --
-- -- -- --
-- -- (3,759) --
----------- ------------ ------------ ------------
-- -- (88,320) --
----------- ------------ ------------ ------------
(233,638) -- (111,212) (38,067)
----------- ------------ ------------ ------------
4,502,441 41,141,495 4,336,640 31,362,914
2,428,261 6,877,202 902,885 1,118,285
2,116,758 1,246,004 998,882 830,860
-- -- -- --
220,445 3,083,700 453,835 1,487,100
----------- ------------ ------------ ------------
9,267,905 52,348,401 6,692,242 34,799,159
----------- ------------ ------------ ------------
199,104 -- 100,444 36,868
19,625 -- 3,016 388
8,257 -- 2,633 74
-- -- -- --
856 -- 3,759 616
----------- ------------ ------------ ------------
227,842 -- 109,852 37,946
----------- ------------ ------------ ------------
(4,307,348) (1,419,922) (718,973) (279,659)
(1,214,906) (156,928) (220,217) (28,455)
(126,440) (46,936) (241,237) (6,897)
-- -- -- --
(505,765) (208,293) (80,609) (80,601)
----------- ------------ ------------ ------------
(6,154,459) (1,832,079) (1,261,036) (395,612)
----------- ------------ ------------ ------------
3,341,288 50,516,322 5,541,058 34,441,493
8,385,498 57,077,946 7,929,749 38,413,520
57,085,089 7,143 38,420,663 7,143
$65,470,587 $57,085,089 $46,350,412 $38,420,663
$ 52,366 $ 181,305 $ (25,441) $ 15,089
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 41
<PAGE> 44
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ING HIGH YIELD ING INTERMEDIATE
BOND FUND BOND FUND
------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Six Months Ended Period Ended
April 30, 2000 Period Ended April 30, 2000 Period Ended
(Unaudited) October 31, 1999)(1) (Unaudited) October 31, 1999)(1)
---------------------------------------- -------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income $ 1,655,845 $ 1,990,994 $ 1,196,996 $ 1,499,954
Net realized gain (loss) on investments
and foreign currencies (116,961) 42,709 (316,413) (1,238,970)
Net change in unrealized depreciation (774,690) (273,575) (205,053) (720,632)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 764,194 1,760,128 675,530 (459,648)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (1,452,888) (1,875,514) (1,059,835) (1,382,288)
Class B shares (120,654) (65,719) (57,659) (54,075)
Class C shares (46,019) (19,232) (54,338) (23,989)
Class I shares -- -- -- --
Class X shares (36,284) (30,529) (25,164) (39,602)
----------- ----------- ----------- -----------
(1,655,845) (1,990,994) (1,196,996) (1,499,954)
----------- ----------- ----------- -----------
Capital Gain
Class A shares (186,445) -- -- --
Class B shares (16,236) -- -- --
Class C shares (6,007) -- -- --
Class I shares -- -- -- --
Class X shares (5,161) -- -- --
----------- ----------- ----------- -----------
(213,849) -- -- --
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS PAID (1,869,694) (1,990,994) (1,196,996) (1,499,954)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 5,376,066 29,549,612 4,690,871 42,274,629
Class B shares 1,441,456 2,474,568 1,557,105 3,175,052
Class C shares 748,797 784,122 1,378,361 1,097,966
Class I shares -- -- -- --
Class X shares 271,607 885,049 310,504 2,271,631
----------- ----------- ----------- -----------
7,837,926 33,693,351 7,936,841 48,819,278
----------- ----------- ----------- -----------
Dividend reinvestments
Class A shares 1,299,323 1,855,772 855,158 1,366,772
Class B shares 78,032 45,149 47,484 53,854
Class C shares 32,887 17,932 40,985 23,450
Class I shares -- -- -- --
Class X shares 32,784 30,325 21,647 38,177
----------- ----------- ----------- -----------
1,443,026 1,949,178 965,274 1,482,253
----------- ----------- ----------- -----------
Cost of shares repurchased
Class A shares (1,811,240) (693,436) (7,931,529) (9,831,107)
Class B shares (730,812) (116,958) (2,063,494) (1,197,919)
Class C shares (162,537) (19,911) (416,272) (11,653)
Class I shares -- -- -- --
Class X shares (137,437) (35,782) (684,162) (1,248,812)
----------- ----------- ----------- -----------
(2,842,026) (866,087) (11,095,457) (12,289,491)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 6,438,926 34,776,442 (2,193,342) 38,012,040
INCREASE (DECREASE) IN NET ASSETS 5,333,426 34,545,576 (2,714,808) 36,052,438
NET ASSETS:
Beginning of period 34,552,719 7,143 36,059,581 7,143
END OF PERIOD* $39,886,145 $34,552,719 $33,344,773 $36,059,581
*Including net undistributed
investment income of: $ 20,101 $ 20,101 $ 20,178 $ 20,178
</TABLE>
<TABLE>
<CAPTION>
ING NATIONAL
TAX-EXEMPT
BOND FUND
--------------------------------------------------------------
April 30, 2000
(Unaudited)(2)
---------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income $ 481,054
Net realized gain (loss) on investments
and foreign currencies (215,143)
Net change in unrealized depreciation (159,624)
-----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 106,287
-----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (477,962)
Class B shares (2,296)
Class C shares (796)
Class I shares --
Class X shares --
-----------
(481,054)
-----------
Capital Gain
Class A shares --
Class B shares --
Class C shares --
Class I shares --
Class X shares --
-----------
--
-----------
TOTAL DISTRIBUTIONS PAID (481,054)
-----------
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares
Class A shares 20,202,856
Class B shares 81,017
Class C shares 60,621
Class I shares --
Class X shares --
-----------
20,344,494
-----------
Dividend reinvestments
Class A shares 393,538
Class B shares 1,084
Class C shares 41
Class I shares --
Class X shares --
-----------
394,663
-----------
Cost of shares repurchased
Class A shares (8,005)
Class B shares (24,115)
Class C shares (10)
Class I shares --
Class X shares --
-----------
(32,130)
-----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 20,707,027
INCREASE (DECREASE) IN NET ASSETS 20,332,260
NET ASSETS:
Beginning of period 5,000
END OF PERIOD* $20,337,260
*Including net undistributed
investment income of: --
</TABLE>
1. Commenced operations on December 15, 1998.
2. Commenced operations on November 8, 1999.
See Notes to Financial Statements.
42 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 45
April 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ING Internet Fund, ING Small Cap Growth Fund, ING Focus Fund, ING Mid Cap
Growth Fund, ING Large Cap Growth Fund, ING Tax Efficient Equity Fund, ING
Growth & Income Fund, ING High Yield Bond Fund, ING Intermediate Bond Fund
and ING National Tax-Exempt Bond Fund are separate investment portfolios
(the "Funds") of the ING Funds Trust (the "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, as an open-end management investment company. The Trust consists
of the Funds and seventeen other investment portfolios: the ING U.S.
Treasury Money Market Fund, ING Money Market Fund, ING National Tax-Exempt
Money Market Fund, ING International Bond Fund, ING Mortgage Income Fund,
ING Stable Value Fund, ING Global Brand Names Fund, ING International Equity
Fund, ING European Equity Fund, ING Tax Efficient Equity Value Fund, ING
Global Information Technology Fund, ING Global Communications Fund, ING
Internet Fund II, ING Balanced Fund, ING Emerging Markets Equity Fund, ING
Global Real Estate Fund and ING Quality of Life Fund. The financial
statements and financial highlights of the other funds are presented in
separate semi-annual reports except for the ING U.S. Treasury Money Market
Fund, ING National Tax-Exempt Money Market Fund, ING Mortgage Income Fund,
ING Stable Value Fund, ING Tax Efficient Equity Value Fund, ING Internet
Fund II, ING Balanced Fund, ING Global Real Estate Fund and ING Quality of
Life Fund, which have not commenced operations. The Funds, except for the
ING National Tax-Exempt Bond Fund, offers five classes of shares, which have
been designated as Class A, B, C, I and X shares. The ING National
Tax-Exempt Bond Fund offers only Class A, B and C shares.
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.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 43
<PAGE> 46
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
(continued)
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.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds, except for the ING National Tax-Exempt Bond 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 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 contracts with respect to the
potential inability of counterparties to meet the terms of their contracts.
A forward foreign currency 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 Intermediate Bond Fund, ING High Yield
Bond Fund and ING National Tax-Exempt Bond Fund declare daily dividends 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 Tax Efficient Equity Fund, ING Focus
Fund and ING Internet Fund declare and pay annually 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.
44 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 47
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
various Sub-Advisory Agreements with entities (the "Sub-Advisers") which
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 Internet Fund ING Investment Management Advisors B.V. 1.25% 0.625%
------------------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund Furman Selz Capital Management LLC 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 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 National Tax-Exempt Bond Fund Furman Selz Capital Management LLC 0.50 0.250
</TABLE>
For the period ended April 30, 2000, the Manager and the Sub-Advisers were
entitled to and voluntarily waived management and sub-advisory fees as
indicated below:
<TABLE>
<CAPTION>
Management Management Sub-Advisory Sub-Advisory
Fund Name Fee Entitled Fee Waived Fee Entitled Fee Waived
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ING Internet Fund $1,114,272 $835,704 $557,136 $417,852
----------------------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund 253,475 148,279 126,738 74,140
----------------------------------------------------------------------------------------------------------------------------
ING Focus Fund 278,600 164,817 139,300 82,409
----------------------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund 169,523 101,456 84,762 50,728
----------------------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund 287,578 171,166 143,789 85,583
----------------------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund 243,229 147,081 121,615 73,541
----------------------------------------------------------------------------------------------------------------------------
ING Growth & Income Fund 157,560 95,104 78,780 47,552
----------------------------------------------------------------------------------------------------------------------------
ING High Yield Bond Fund 127,371 76,895 63,686 38,448
----------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund 93,805 57,017 46,903 28,509
----------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund 47,715 35,786 23,858 17,893
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 45
<PAGE> 48
April 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
In addition, for the period ended April 30, 2000, the Manager has agreed to
reimburse expenses amounting to $1,855 for ING Focus Fund, $5,440 for ING Mid
Cap Growth Fund, $11,152 for ING Growth & Income Fund, $21,063 for ING High
Yield Bond Fund, $14,405 for ING Intermediate Bond Fund and $17,666 for ING
National Tax-Exempt Bond 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.
For the period ended April 30, 2000, 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 Fee Distribution Fee Shareholder Servicing
Fund Name Entitled Waived Fee
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ING Internet Fund $549,363 $190,863 $222,884
---------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund 133,060 91,239 63,361
---------------------------------------------------------------------------------------------------------------
ING Focus Fund 148,113 97,351 69,652
---------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund 86,879 63,832 42,258
---------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund 223.887 101,424 95,759
---------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund 168,590 95,161 76,022
---------------------------------------------------------------------------------------------------------------
ING Growth & Income Fund 110,832 74,768 52,521
---------------------------------------------------------------------------------------------------------------
ING High Yield Bond Fund 104,481 84,933 48,982
---------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund 99,764 81,803 46,888
---------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund 50,103 49,538 24,002
</TABLE>
In addition, the Distributor collects sales charges imposed on sales of each
Fund's Class A shares and reallows a portion of such charges to dealers through
which the sales are made. There is also a contingent deferred sales load
("CDSL") 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% CDSL if redeemed within one year of purchase.
For the period ended April 30, 2000, sales charges and CDSL'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 CDSL CDSL CDSL
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ING Internet Fund $3,274,945 $284,966 $34,161 $5,260
----------------------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund 113,430 2,168 439 210
----------------------------------------------------------------------------------------------------------------------------
ING Focus Fund 77,334 9,243 2,750 -
----------------------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund 36,002 1,311 21 207
----------------------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund 128,007 8,790 8,496 941
----------------------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund 83,178 18,934 175 -
----------------------------------------------------------------------------------------------------------------------------
ING Growth & Income Fund 82,246 3,575 1,583 24
----------------------------------------------------------------------------------------------------------------------------
ING High Yield Bond Fund 48,719 24,167 323 403
----------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund 32,826 5,288 2,427 2,045
----------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund 5 - - -
</TABLE>
46 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 49
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.
4. INVESTMENTS IN SECURITIES
For the period ended April 30, 2000, 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 Internet Fund $187,743,722 $86,584,853 $16,414,099 $32,147,041 $(15,732,942)
------------------------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund 80,035,012 75,805,267 11,056,806 7,909,780 3,147,026
------------------------------------------------------------------------------------------------------------------------------
ING Focus Fund 35,343,438 19,691,451 10,514,483 2,642,001 7,872,482
------------------------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund 16,705,538 14,442,214 13,235,309 1,862,250 11,373,059
------------------------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund 52,744,708 28,762,887 15,175,709 3,420,525 11,755,184
------------------------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund 10,294,862 4,210,922 15,066,041 4,366,054 10,699,987
------------------------------------------------------------------------------------------------------------------------------
ING Growth & Income Fund 15,923,251 11,330,778 8,749,113 2,236,660 6,512,453
------------------------------------------------------------------------------------------------------------------------------
ING High Yield Bond Fund 90,008,226 84,147,792 171,246 1,219,511 (1,048,265)
------------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund 108,682,858 106,731,976 74,462 1,000,147 (925,685)
------------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund 21,681,200 1,748,250 20,768 180,392 (159,624)
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 47
<PAGE> 50
April 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
5. 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 National Tax-Exempt Bond 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 Internet 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 Internet 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.
6. 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.
7. FEDERAL INCOME TAX
At October 31, 1999, the ING Small Cap Growth Fund, ING Mid Cap Growth Fund,
ING Large Cap Growth Fund, ING Tax Efficient Equity Fund and ING
Intermediate Bond Fund had, for Federal income tax purposes, capital loss
carryforwards available to offset future realized gains. The amount and date
of expiration of these carryforwards are as follows:
<TABLE>
<CAPTION>
Fund Name Capital Loss Carryforwards Expiration
---------------------------------------------------------------------------------------------
<S> <C> <C>
ING Small Cap Growth Fund $1,539,689 October 31, 2007
---------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund 2,076,959 October 31, 2007
---------------------------------------------------------------------------------------------
ING Large Cap Growth Fund 1,396,880 October 31, 2007
---------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund 7,352 October 31, 2007
---------------------------------------------------------------------------------------------
ING Intermediate Bond Fund 1,083,329 October 31, 2007
</TABLE>
48 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 51
8. SHARES OF BENEFICIAL INTEREST
At April 30, 2000, 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, 2000, 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 I Shares Class X Shares
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ING Internet Fund $69,239,524 $52,441,528 $27,234,891 -- $4,564,011
---------------------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund 31,278,540 2,665,470 2,495,776 -- 1,386,176
---------------------------------------------------------------------------------------------------------------------------
ING Focus Fund 45,646,634 4,097,599 2,170,795 -- 1,677,637
---------------------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund 28,381,279 1,226,584 784,812 -- 396,551
---------------------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund 48,957,327 5,952,186 14,229,238 $121,181 5,972,058
---------------------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund 40,093,191 7,956,285 3,200,083 -- 2,591,332
---------------------------------------------------------------------------------------------------------------------------
ING Growth & Income Fund 34,810,403 1,780,310 1,588,102 -- 1,787,147
---------------------------------------------------------------------------------------------------------------------------
ING High Yield Bond Fund 35,559,543 3,193,152 1,403,477 -- 1,046,238
---------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund 31,408,580 1,573,736 2,114,895 -- 708,452
---------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund 20,588,389 60,486 63,152 -- --
</TABLE>
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 49
<PAGE> 52
April 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING INTERNET FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 4,972,921 $ 99,799,008 3,045,309 $ 31,032,102
Shares issued on reinvestment 41,751 835,449 -- --
Shares redeemed (2,822,423) (60,120,994) (219,359) (2,306,139)
------------ ------------ ------------ ------------
Net increase 2,192,249 $ 40,513,463 2,825,950 $ 28,725,963
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 2,823,746 $ 58,311,437 1,217,308 $ 12,538,049
Shares issued on reinvestment 20,902 429,318 -- --
Shares redeemed (875,515) (18,372,693) (40,458) (458,465)
------------ ------------ ------------ ------------
Net increase 1,969,133 $ 40,368,062 1,176,850 $ 12,079,584
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 1,441,757 $ 29,079,406 454,931 $ 4,757,431
Shares issued on reinvestment 10,446 214,873 -- --
Shares redeemed (300,510) (6,407,859) (36,518) (408,839)
------------ ------------ ------------ ------------
Net increase 1,151,693 $ 22,886,420 418,413 $ 4,348,592
------------------------------------------------------------------------------------------------------------------------
Class X Shares(1)
Shares sold 198,837 $ 4,127,373 84,230 $ 855,683
Shares issued on reinvestment 1,460 29,986 -- --
Shares redeemed (18,216) (444,578) (570) (6,000)
------------ ------------ ------------ ------------
Net increase 182,081 $ 3,712,781 83,660 $ 849,683
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on July 1, 1999.
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING SMALL CAP GROWTH FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 1,081,460 $ 17,447,076 2,756,698 $ 27,733,436
Shares issued on reinvestment -- -- -- --
Shares redeemed (752,066) (12,409,947) (120,009) (1,281,046)
------------ ------------ ------------ ------------
Net increase 329,394 $ 5,037,129 2,636,689 $ 26,452,390
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 135,555 $ 2,368,154 68,717 $ 720,182
Shares issued on reinvestment -- -- -- --
Shares redeemed (23,790) (405,035) (1,347) (14,674)
------------ ------------ ------------ ------------
Net increase 111,765 $ 1,963,119 67,370 $ 705,508
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 143,223 $ 2,295,709 37,625 $ 388,119
Shares issued on reinvestment -- -- -- --
Shares redeemed (10,804) (184,741) (270) (2,855)
------------ ------------ ------------ ------------
Net increase 132,419 $ 2,110,968 37,355 $ 385,264
------------------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 53,093 $ 914,090 51,926 $ 533,637
Shares issued on reinvestment -- -- -- --
Shares redeemed (2,967) (44,598) (1,149) (12,227)
------------ ------------ ------------ ------------
Net increase 50,126 $ 869,492 50,777 $ 521,410
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 11, 1999.
50 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 53
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING FOCUS FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 1,494,127 $ 20,095,545 2,922,599 $ 30,105,049
Shares issued on reinvestment 91,224 1,200,511 -- --
Shares redeemed (371,220) (4,921,332) (69,444) (823,282)
------------ ------------ ------------ ------------
Net increase 1,214,131 $ 16,374,724 2,853,155 $ 29,281,767
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 138,976 $ 1,837,692 266,465 $ 3,195,205
Shares issued on reinvestment 6,862 89,753 -- --
Shares redeemed (52,037) (689,860) (27,545) (331,601)
------------ ------------ ------------ ------------
Net increase 93,801 $ 1,237,585 238,920 $ 2,863,604
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 121,342 $ 1,603,291 80,003 $ 963,946
Shares issued on reinvestment 2,670 34,903 -- --
Shares redeemed (30,821) (408,393) (1,989) (23,655)
------------ ------------ ------------ ------------
Net increase 93,191 $ 1,229,801 78,014 $ 940,291
------------------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 55,897 $ 754,042 89,863 $ 1,057,689
Shares issued on reinvestment 3,241 42,320 -- --
Shares redeemed (12,679) (169,098) (298) (3,513)
------------ ------------ ------------ ------------
Net increase 46,459 $ 627,264 89,565 $ 1,054,176
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 12, 1999.
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING MID CAP GROWTH FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 145,153 $ 1,784,736 2,753,482 $ 27,612,489
Shares issued on reinvestment -- -- -- --
Shares redeemed (29,810) (338,696) (54,675) (559,344)
------------ ------------ ------------ ------------
Net increase 115,343 $ 1,446,040 2,698,807 $ 27,053,145
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 58,041 $ 703,475 63,976 $ 646,218
Shares issued on reinvestment -- -- -- --
Shares redeemed (9,433) (112,197) (957) (9,976)
------------ ------------ ------------ ------------
Net increase 48,608 $ 591,278 63,019 $ 636,242
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 34,233 $ 413,997 37,952 $ 385,487
Shares issued on reinvestment -- -- -- --
Shares redeemed (1,034) (11,910) (283) (2,855)
------------ ------------ ------------ ------------
Net increase 33,199 $ 402,087 37,669 $ 382,632
------------------------------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold 1,594 $ 17,417 40,383 $ 414,531
Shares issued on reinvestment -- -- -- --
Shares redeemed (41,647) (465,744) (330) (3,267)
------------ ------------ ------------ ------------
Net increase (decrease) (40,053) $ (448,327) 40,053 $ 411,264
------------------------------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 8,241 $ 99,145 33,054 $ 329,944
Shares issued on reinvestment -- -- -- --
Shares redeemed (1,855) (21,499) (818) (8,660)
------------ ------------ ------------ ------------
Net increase 6,386 $ 77,646 32,236 $ 321,284
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class I shares commenced offering on July 29, 1999.
(3) Class X shares commenced offering on January 19, 1999.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 51
<PAGE> 54
April 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING LARGE CAP GROWTH FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 1,692,350 $ 22,021,893 3,303,263 $ 33,983,244
Shares issued on reinvestment -- -- -- --
Shares redeemed (431,339) (5,549,012) (123,646) (1,383,990)
------------ ------------ ------------ ------------
Net increase 1,261,011 $ 16,472,881 3,179,617 $ 32,599,254
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 223,353 $ 2,816,894 335,562 $ 3,743,914
Shares issued on reinvestment -- -- -- --
Shares redeemed (42,837) (552,267) (3,803) (44,163)
------------ ------------ ------------ ------------
Net increase 180,516 $ 2,264,627 331,759 $ 3,699,751
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 427,726 $ 5,396,071 921,262 $ 10,475,479
Shares issued on reinvestment -- -- -- --
Shares redeemed (119,788) (1,502,627) (10,849) (118,613)
------------ ------------ ------------ ------------
Net increase 307,938 $ 3,893,444 910,413 $ 10,356,866
------------------------------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold 6,053 $ 77,044 4,312 $ 49,138
Shares issued on reinvestment -- -- -- --
Shares redeemed (398) (4,998) -- --
------------ ------------ ------------ ------------
Net increase 5,655 $ 72,046 4,312 $ 49,138
------------------------------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 102,161 $ 1,280,802 446,082 $ 4,974,893
Shares issued on reinvestment -- -- -- --
Shares redeemed (10,472) (132,832) (10,790) (123,341)
------------ ------------ ------------ ------------
Net increase 91,689 $ 1,147,970 435,292 $ 4,851,552
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class I shares commenced offering on September 27, 1999.
(3) Class X shares commenced offering on January 11, 1999.
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING TAX EFFICIENT EQUITY FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 364,498 $ 4,502,441 3,938,486 $ 41,141,495
Shares issued on reinvestment 16,293 199,104 -- --
Shares redeemed (349,011) (4,307,348) (124,823) (1,419,922)
------------ ------------ ------------ ------------
Net increase 31,780 $ 394,197 3,813,663 $ 39,721,573
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 196,607 $ 2,428,261 603,425 $ 6,877,202
Shares issued on reinvestment 1,609 19,625 -- --
Shares redeemed (97,073) (1,214,906) (13,447) (156,928)
------------ ------------ ------------ ------------
Net increase 101,143 $ 1,232,980 589,978 $ 6,720,274
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 171,119 $ 2,116,758 106,384 $ 1,246,004
Shares issued on reinvestment 681 8,257 -- --
Shares redeemed (10,329) (126,440) (4,053) (46,936)
------------ ------------ ------------ ------------
Net increase 161,471 $ 1,998,575 102,331 $ 1,199,068
------------------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 17,914 $ 220,445 276,862 $ 3,083,700
Shares issued on reinvestment 70 856 -- --
Shares redeemed (41,309) (505,765) (17,841) (208,293)
------------ ------------ ------------ ------------
Net increase (decrease) (23,325) $ (284,464) 259,021 $ 2,875,407
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 11, 1999.
52 ING Domestic Mutual Funds Semi-Annual Report
<PAGE> 55
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING GROWTH AND INCOME FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 359,289 $ 4,336,640 3,082,641 $ 31,362,914
Shares issued on reinvestment 8,497 100,444 3,398 36,868
Shares redeemed (61,767) (718,973) (25,448) (279,659)
------------ ------------ ------------ ------------
Net increase 306,019 $ 3,718,111 3,060,591 $ 31,120,123
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 76,429 $ 902,885 101,981 $ 1,118,285
Shares issued on reinvestment 257 3,016 36 388
Shares redeemed (18,297) (220,217) (2,591) (28,455)
------------ ------------ ------------ ------------
Net increase 58,389 $ 685,684 99,426 $ 1,090,218
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 85,071 $ 998,882 75,515 $ 830,860
Shares issued on reinvestment 224 2,633 7 74
Shares redeemed (20,904) (241,237) (633) (6,897)
------------ ------------ ------------ ------------
Net increase 64,391 $ 760,278 74,889 $ 824,037
------------------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 38,800 $ 453,835 136,848 $ 1,487,100
Shares issued on reinvestment 320 3,759 57 616
Shares redeemed (7,010) (80,609) (7,353) (80,601)
------------ ------------ ------------ ------------
Net increase 32,110 $ 376,985 129,552 $ 1,407,115
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 12, 1999.
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING HIGH YIELD BOND FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 535,103 $ 5,376,066 2,950,126 $ 29,549,612
Shares issued on reinvestment 130,717 1,299,323 184,187 1,855,772
Shares redeemed (182,891) (1,811,240) (69,091) (693,436)
------------ ------------ ------------ ------------
Net increase 482,929 $ 4,864,149 3,065,222 $ 30,711,948
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 143,752 $ 1,441,456 245,269 $ 2,474,568
Shares issued on reinvestment 7,843 78,032 4,506 45,149
Shares redeemed (73,649) (730,812) (11,685) (116,958)
------------ ------------ ------------ ------------
Net increase 77,946 $ 788,676 238,090 $ 2,402,759
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 74,993 $ 748,797 77,919 $ 784,122
Shares issued on reinvestment 3,315 32,887 1,787 17,932
Shares redeemed (16,543) (162,537) (1,994) (19,911)
------------ ------------ ------------ ------------
Net increase 61,765 $ 619,147 77,712 $ 782,143
------------------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 27,502 $ 271,607 87,496 $ 885,049
Shares issued on reinvestment 3,301 32,784 3,023 30,325
Shares redeemed (13,995) (137,437) (3,597) (35,782)
------------ ------------ ------------ ------------
Net increase 16,808 $ 166,954 86,922 $ 879,592
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 11, 1999.
ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000 53
<PAGE> 56
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
(continued)
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING INTERMEDIATE BOND FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 499,903 $ 4,690,871 4,290,518 $ 42,274,629
Shares issued on reinvestment 91,834 855,158 142,631 1,366,772
Shares redeemed (850,171) (7,931,529) (1,029,165) (9,831,107)
------------ ------------ ------------ ------------
Net increase (decrease) (258,434) $ (2,385,500) 3,403,984 $ 33,810,294
------------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 166,715 $ 1,557,105 328,463 $ 3,175,052
Shares issued on reinvestment 5,099 47,484 5,663 53,854
Shares redeemed (221,678) (2,063,494) (126,073) (1,197,919)
------------ ------------ ------------ ------------
Net increase (decrease) (49,864) $ (458,905) 208,053 $ 2,030,987
------------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 146,196 $ 1,378,361 113,633 $ 1,097,966
Shares issued on reinvestment 4,403 40,985 2,468 23,450
Shares redeemed (44,958) (416,272) (1,241) (11,653)
------------ ------------ ------------ ------------
Net increase 105,641 $ 1,003,074 114,860 $ 1,109,763
------------------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 33,062 $ 310,504 233,086 $ 2,271,631
Shares issued on reinvestment 2,324 21,647 4,011 38,177
Shares redeemed (73,460) (684,162) (130,052) (1,248,812)
------------ ------------ ------------ ------------
Net increase (decrease) (38,074) $ (352,011) 107,045 $ 1,060,996
------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 11, 1999.
<TABLE>
<CAPTION>
Period Ended April 30, 2000
---------------------------
ING NATIONAL TAX-EXEMPT BOND FUND Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C>
Class A Shares(1)
Shares sold 2,020,892 $ 20,202,856
Shares issued on reinvestment 40,414 393,538
Shares redeemed (823) (8,005)
------------ ------------
Net increase 2,060,483 $ 20,588,389
--------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 8,536 $ 81,017
Shares issued on reinvestment 111 1,084
Shares redeemed (2,456) (24,115)
------------ ------------
Net increase 6,191 $ 57,986
--------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 6,136 $ 60,621
Shares issued on reinvestment 4 41
Shares redeemed (1) (10)
------------ ------------
Net increase 6,139 $ 60,652
--------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on November 8, 1999.
54 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 57
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
Donald E. Brostrom, Treasurer
Louis S. Citron, Vice President
Ralph G. Norton III, Vice President
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
State Street Bank and 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
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 Domestic Mutual Funds Semi-Annual Report / April 30, 2000 55
<PAGE> 58
ING FUNDS SERVICES
www.ingfunds.com -- YOUR 24-HOUR INFORMATION SOURCE
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
- Buy, sell and exchange shares.
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.
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.
ACCOUNT TRANSACTIONS You can use the site to make account purchases, exchanges
and redemptions within your fund account. After viewing any account position,
you have access to tools that will enable you to buy, exchange, or sell shares.
To take advantage of this feature, you will be required to provide your bank
information to ING Funds when you set up your Internet account. You will receive
confirmations in the mail after conducting any transactions on the web.
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.
56 ING Domestic Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 59
ING MUTUAL FUNDS
A list of fund objectives and primary portfolios
ING offers a diverse fund family to help meet your needs and long-term financial
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 Internet Fund Capital appreciation A non-diversified portfolio of Internet
technology companies
-------------------------------------------------------------------------------------------------------------
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 return Primarily income-producing stocks
-------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GLOBAL/INTERNATIONAL FUNDS
------------------------------------------------------------------------------------------------------
<S> <C> <C>
STOCK FUNDS
------------------------------------------------------------------------------------------------------------------------------------
ING Emerging Markets Equity Fund Growth of capital A diversified portfolio of emerging market stocks
------------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund Growth of capital A diversified portfolio of communications products & svcs
------------------------------------------------------------------------------------------------------------------------------------
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 International Bond Fund High total return A non-diversified portfolio of bonds from
issuers generally outside of the U.S.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
BOND FUNDS
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ING High Yield Bond Fund High current income Below-investment grade corporate bonds
and total return
----------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund High current income U.S. government and high-quality corporate bonds
----------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund High current tax-exempt Diversified portfolio of municipal bonds
income
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ING Money Market Fund High level of current income 1st tier commercial paper
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
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.
<PAGE> 60
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, 2000, this report must be accompanied by performance for
the most recently completed calendar quarter.
[ING FUNDS logo]
1475 Dunwoody Drive
West Chester, PA 19380-1478
