<PAGE> 1
AMERICAS ING FUNDS
ING GLOBAL/INTERNATIONAL MUTUAL FUNDS
Semi-Annual Report / April 30, 2000
[ING FUNDS GRAPHIC]
[ING FUNDS 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 3-9 FUND SUMMARIES
A summary of the Funds' performance record and portfolio composition, and an
interview with the Fund's portfolio manager or managers.
Pages 12-20 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 Emerging Markets Equity Fund Page 3 Page 12
ING Global Communications Fund Page 4 Page 14
ING Global Information Technology Fund Page 5 Page 15
ING European Equity Fund Page 6 Page 16
ING International Equity Fund Page 7 Page 17
ING Global Brand Names Fund Page 8 Page 19
ING International Bond Fund Page 9 Page 20
</TABLE>
Pages 22-25 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).
Page 26 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.
Page 27 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.
Page 28-29 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, dividends, distributions or capital share
transactions.
Pages 30-41 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 43 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
[PHOTO 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 43 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 Global/International 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(3)
Share Inception Newspaper -----------------------------------------
Class Date Quotron CUSIP Listing YTD 1-Year Inception
----- ---- ------- ----- ------- --- ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GLOBAL/INTERNATIONAL FUNDS(1)
ING EMERGING MARKETS A 03/01/00 n/a 45683U367 n/a n/a n/a - 19.79%
EQUITY FUND B 03/01/00 n/a 45683U359 n/a n/a n/a - 19.16
C 03/01/00 n/a 45683U342 n/a n/a n/a - 15.85
X(2) 03/01/00 n/a 45683U334 n/a n/a n/a - 19.25
ING GLOBAL A 03/01/00 IGCAX 45683V662 GlCommA n/a n/a - 20.64
COMMUNICATIONS FUND B 03/01/00 IGCBX 45683V670 GlCommB n/a n/a - 20.10
C 03/01/00 n/a 45683V688 n/a n/a n/a - 16.64
X(2) 03/01/00 n/a 45683V654 n/a n/a n/a - 19.91
ING GLOBAL INFORMATION A 12/15/98 IITAX 45683U185 GlInTchA 1.85% 131.77% 179.82
TECHNOLOGY FUND B 12/15/98 INTBX 45683U177 GlInTchB 2.85 139.74 190.67
C 12/15/98 IITCX 45683U169 GlInTchC 6.89 143.67 194.58
X(2) 01/11/99 n/a 45683U151 n/a 2.89 139.37 133.09
ING EUROPEAN A 12/15/98 IEEAX 45683U326 EuroEqA - 10.13 5.47 12.72
EQUITY FUND B 12/15/98 n/a 45683U318 n/a - 9.70 5.99 14.42
C 12/15/98 n/a 45683U292 n/a - 6.23 9.61 18.02
X(2) 01/15/99 n/a 45683U284 n/a - 9.62 6.11 8.59
ING INTERNATIONAL A 12/15/98 IIEAX 45683U417 IntlEqA - 13.76 10.12 23.30
EQUITY FUND B 12/15/98 n/a 45683U391 n/a - 13.12 11.04 25.73
C 12/15/98 n/a 45683U383 n/a - 9.62 15.03 29.60
X(2) 02/16/99 n/a 45683U375 n/a - 13.17 11.09 22.74
ING GLOBAL A 12/15/98 IGBAX 45683U458 GlBrNmA - 7.78 10.83 22.21
BRAND NAMES FUND B 12/15/98 n/a 45683U441 n/a - 7.27 11.79 24.46
C 12/15/98 n/a 45683U433 n/a - 3.36 15.88 28.56
X(2) 01/14/99 n/a 45683U425 n/a - 7.19 11.77 15.48
ING INTERNATIONAL A 12/15/98 IBFAX 45683U797 IntlBdA - 8.83 - 14.43 - 20.39
BOND FUND B 12/15/98 n/a 45683U789 n/a - 9.38 - 15.22 - 20.52
C 12/15/98 n/a 45683U771 n/a - 5.47 - 11.51 - 17.09
X(2) 01/11/99 n/a 45683U763 n/a - 9.27 - 15.11 - 19.47
</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. Foreign investing, particularly emerging markets, involve special risks
considerations including currency fluctuations, lower liquidity, political and
economic uncertainties and differences in accounting standards. 2. 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. 3. 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%.
2 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 5
DATA AS OF 4/30/00
ING EMERGING MARKETS EQUITY FUND
For investors seeking long-term growth of capital
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- Common Stocks 97.6%
- Short-Term Investments 2.4
</TABLE>
CUMULATIVE TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
MSCI
Emerging
Market
Class A shares Class B shares Class C shares Class X shares Free Index(3)
<S> <C> <C> <C> <C> <C>
Inception -19.79% -19.16% -15.85% -19.25% -9.32%
</TABLE>
Inception date for the Fund is 3/1/00.
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. 3. The MSCI Emerging Market Free Index is unmanaged, and does not
include any sales charges or expenses.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Taiwan Semiconductor Manufacturing 5.4%
Samsung Electronics 5.2
Telefonos de Mexico 4.0
Winbond Electronic Corp. 3.4
Embratel Participacoes 2.5
Korea Electric Power Corp. 2.4
China Steel Corp. 2.4
Synnex Technology Int'l. Corp. 2.3
Asustek Computer Inc. 2.3
Grupo Televisa 2.1
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Electronic Component: Semiconductor 9.0%
Telephone:Integrated 8.7
Oil Companies: Integrated 5.7
Electric Products:Miscellaneous 5.1
Diversified Operations 4.7
</TABLE>
<TABLE>
<CAPTION>
TOP TEN COUNTRIES(1)
<S> <C>
Taiwan 15.9%
Brazil 12.0
South Korea 11.9
Mexico 11.8
South Africa 7.7
Russia 5.7
India 5.6
Israel 5.4
Turkey 4.9
United States 4.3
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF RORY LANDMAN]
[PHOTO OF MATT LINSEY]
RORY LANDMAN
MATT LINSEY
Portfolio Managers
OBJECTIVE
The Fund seeks to provide LONG-TERM CAPITAL APPRECIATION by investing in
companies based or operating primarily IN DEVELOPING ECONOMIES THROUGHOUT THE
WORLD.
"OUR OVERWEIGHT POSITIONS IN RUSSIA AND MALAYSIA PROVED TO BE SOUND STRATEGIES
FOR THE FUND..."
See page 12 for financial details.
QUESTION: The Fund was launched on March 1, 2000. How has it performed since its
inception?
ANSWER: The launch of the Fund coincided with a period of excessive volatility
in the global financial marketplace. As such, it posted a negative return
during its initial two months.
QUESTION: What caused this volatility across the financial markets?
ANSWER: Global financial markets were unsettled by concerns about the
overvaluation of technology and telecommunication stocks. This followed a
very strong period of performance in those two sectors.
QUESTION: What investment strategies have benefited the Fund since its
inception?
ANSWER: Our overweight positions in Russia and Malaysia proved to be sound
strategies for the Fund during this period. In Russia, we foresaw the sharp
improvements in economic fundamentals, combined with strong oil prices and
an improving political situation.
In Malaysia, we benefited from several converging factors, including an
undervalued currency, a large current account surplus, and the anticipated
return of Malaysia to the benchmark index in May.
QUESTION: What strategies were less successful for the Fund?
ANSWER: The Fund suffered from its overweight position in the technology sector.
As technology continued to appreciate during the early part of the year, we
decided not to invest any new money in the sector. However, we did maintain
a 5% active position in technology. Despite the fact that we avoided the
".com" companies, we were still hurt by the Nasdaq-led sell-off -- a
phenomenon that seemed to affect all technology stocks regardless of
business fundamentals.
QUESTION: What is your outlook for the global markets?
ANSWER: The two most important economic factors for the emerging market asset
class are the outlook for growth and interest rates. We remain positive
about the outlook for global growth. Specifically, we are looking for some
of the strongest growth we have seen in more than 10 years.
Our primary concern is that higher interest rates will result in less
liquidity for financial assets. Even if this situation were to evolve we
believe that, in terms of valuations, emerging markets will remain
attractive relative to developed markets.
QUESTION: What is your outlook for the Fund?
ANSWER: We believe that our intensive research efforts should continue to
uncover attractive opportunities for the Fund. For this reason, combined
with our continued belief in global growth, we remain optimistic about
emerging markets equities going forward.
[ING FUNDS LOGO]
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 3
<PAGE> 6
DATA AS OF 4/30/00
ING GLOBAL COMMUNICATIONS FUND
For investors seeking long-term growth of capital
ASSET ALLOCATION(1)
[PIE CHART]
<TABLE>
<S> <C>
- Common Stock 96.2%
- Short-Term Investments 3.8
</TABLE>
CUMULATIVE TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
NASDAQ
Telecom
Class A shares Class B shares Class C shares Class X shares Index(3)
<S> <C> <C> <C> <C> <C>
Inception -20.64% -20.10% -16.64% -19.91% -21.96%
</TABLE>
Inception date for the Fund is 3/1/00.
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. 3. The NASDAQ Telecom Index is unmanaged, and does not include
any sales charges or expenses.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
CIENA Corp. 4.4%
Amdocs Ltd. 4.2
ADC Telecommunications, Inc. 3.9
Vodafone AirTouch PLC 3.8
JDS Uniphase Corp. 3.8
Micromuse Inc. 3.6
Telefonaktiebolaget LM Ericsson 3.6
NTT DoCoMo, Inc. 3.5
Comverse Technology, Inc. 3.4
Convergys Corp. 3.1
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Telecommunication Equipment 18.0%
Cellular Telecommunication 13.5
Telecommunication Services 11.2
Telephone:Integrated 10.3
Fiber Optics 9.5
</TABLE>
<TABLE>
<CAPTION>
TOP TEN COUNTRIES(1)
<S> <C>
United States 71.6%
United Kingdom 7.6
Canada 4.4
Netherlands 3.9
Japan 3.3
Sweden 3.4
Finland 2.4
Italy 1.6
Hong Kong 0.9
Spain 0.9
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF DANIEL HAYES]
[PHOTO OF GUY UDING]
DANIEL HAYES
GUY UDING
Portfolio Managers
OBJECTIVE
The Fund seeks to provide LONG-TERM CAPITAL GROWTH through the investment in a
diversified portfolio of companies engaged in COMMUNICATION PRODUCTS AND
SERVICES.
"ONE AREA OF CONCENTRATION IS COMPANIES POISED TO BENEFIT FROM THE GROWTH IN
WIRELESS DATA AND THE INTERNET."
See page 14 for financial details.
QUESTION: The Fund was introduced at the beginning of March 2000. How did it
perform during its initial two months?
ANSWER: The Fund was launched just as stock markets around the world were
undergoing a severe correction. This was particularly
true in the technology sector, where the Fund invests its assets. As a
result, disappointing short-term results were generated. However, we
continue to feel strongly that the opportunities in the global
communications marketplace are immense for longer-term investors.
QUESTION: What are some of the themes you are stressing in the Fund?
ANSWER: One area of concentration is companies poised to benefit from the growth
in wireless data and the Internet. In particular, the equipment sector is
benefiting from increased capital spending by incumbents and new entrant
service providers, both in wire-line and wireless technologies. In the U.S.
market, the increase in spending is being led by long distance and
competitive local exchange carriers.
We're also focusing on firms that are positioning themselves for the
future through corporate restructuring. This is particularly evident in the
communication services industry.
QUESTION: What is your view of the outlook for broadband technology?
ANSWER: We believe the issues surrounding broadband access will continue to play
an important role in the development of the communications roadmap. The
Internet revolution gave us global connectivity and the ability to send
standardized messages at next to zero cost. The bandwidth revolution is
about the ability to send rich bandwidth intensive multimedia at a fraction
of speed.
For example, using a 56K modem it would take over two hours to download a
5-minute movie clip. However, the same download can occur in just over a
minute using DSL technology. As such, we believe consumers will soon demand
more advanced connectivity to their homes.
QUESTION: What is your outlook for the global communications industry and the
Fund?
ANSWER: We believe the underlying fundamentals in the industry are extremely
strong, and the first quarter 2000 results reflected this. However, the
typical momentum investor will likely find conditions much more difficult in
the coming months. As such, we feel the experience of a professional
investment manager will be vital to unearth and take advantage of the
numerous opportunities in the global communications marketplace.
[ING FUNDS LOGO]
4 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 7
DATA AS OF 4/30/00
ING GLOBAL INFORMATION TECHNOLOGY FUND
For investors seeking long-term growth
GROWTH OF A $10,000 INVESTMENT
ING Global Information Tech. Fund vs. GS Tech. Industry Composite Index:
12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares GS Technology Industry Composite Index
<S> <C> <C> <C>
9425 10000 10000 10000
10782 11440 11440 11295
12234 12960 12970 13109
11320 11990 11990 11533
11583 12270 12270 12517
11376 12040 12040 12911
11301 11960 11960 12768
12790 13530 13520 14268
12762 13490 13480 14129
13421 14180 14180 14862
14505 15310 15310 15009
16381 16780 17180 15540
20160 21280 21260 18315
25894 27323 27303 21302
24683 26018 26009 19985
32716 34055 34036 23609
30461 32077 32078 24667
27982 29067 29458 22516
</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 GS Technology Industry Composite 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 131.77% 139.74% 143.67% 139.37%
Inception 111.63 117.57 119.70 91.87
</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 PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP FIVE HOLDINGS(1)
<S> <C>
Texas Instruments Inc. 4.1%
Oracle Corp. 4.0
VERITAS Software Corp. 3.8
Sun Microsystems, Inc. 3.6
Cisco Systems, Inc. 3.5
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Enterprise Software/Services 13.0%
Electronic Component: Semiconductor 11.9
Applications Software 8.4
Computers: Memory Devices 7.3
Internet Software 6.4
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 84.0%
Japan 3.9
Netherlands 2.9
Germany 2.9
Canada 2.7
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF GUY UDING]
GUY UDING
Portfolio Management
Team Leader
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of primarily
global information technology stocks.
"Well-positioned infrastructure companies generated the best results..."
See page 15 for financial details.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund produced extraordinary results, handily outperforming its
benchmark.
QUESTION: What were some of the drivers behind this strong information
technology (IT) performance?
ANSWER: First off, the Y2K problem didn't lead to global chaos, and IT budgets
grew at a record pace, as businesses addressed Internet, e-commerce and
other business-critical IT initiatives. Having said that, there were some
bumps in the road. IT stock valuations moved quickly ahead, and some
investors sold shares to lock in profits during the second half of the
reporting period.
QUESTION: Which strategies enhanced the Fund's performance?
ANSWER: Well-positioned infrastructure companies generated the best results, in
particular electronic infrastructure software companies, intelligent storage
firms and the semiconductor capital equipment sector. Major drivers for this
growth were the Internet and the spectacular demand for mobile devices. As
global networks are replaced by fiber and optical components, the need for
bandwidth has exploded.
We've seen the underlying demand for products in the optical networking
industry continue to significantly outpace the available supply. As such,
companies such as JDS Uniphase, the biggest maker of parts for fiber-optic
equipment, delivered strong results. And the semiconductor capital equipment
sector recovered quickly, after years of declining demand and depressed
earnings. This was largely the result of very strong interest in
communication devices and PCs.
QUESTION: What areas detracted from results?
ANSWER: Change occurs very rapidly in the IT market. Companies that didn't
adjust their offerings to respond to the market were confronted with a
shortfall in their bookings and revenue. Also, companies that couldn't
attract or retain talent with new skills experienced lower utilization and
lower consulting fees.
QUESTION: Could you share your outlook for the global IT market and the Fund?
ANSWER: The technology market is clearly in a transitional phase, but the
underlying fundamentals are still very strong. Keeping pace with the rapidly
evolving business environment will be the key issue this year. We also
expect short-term volatility to persist, as today's valuations leave little
room for disappointment. Having said that, in many ways IT is in its early
stages of development, and ongoing innovations should result in many
long-term opportunities.
[ING FUNDS LOGO]
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 5
<PAGE> 8
DATA AS OF 4/30/00
ING EUROPEAN EQUITY FUND
For investors seeking long-term growth
GROWTH OF A $10,000 INVESTMENT
ING European Equity Fund vs. FT Europe Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares FT Europe Index
<S> <C> <C> <C>
9425 10000 10000 10000
9972 10570 10570 10652
9962 10560 10560 10578
9680 10250 10250 10338
9812 10390 10390 10492
10075 10670 10670 10864
9566 10120 10110 10326
9840 10400 10400 10515
9991 10560 10560 10655
10151 10720 10720 10772
9943 10490 10490 10691
10320 10890 10890 11022
10613 11190 11190 11296
11825 12459 12460 12369
10894 11473 11472 11446
11515 12120 12090 11862
11786 12397 12347 12162
11272 11442 11802 11661
</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 FT Europe 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 5.47% 5.99% 9.61% 6.11%
Inception 9.12 10.31 12.83 6.61
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/15/99.
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 PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP FIVE HOLDINGS(1)
<S> <C>
Vodafone AirTouch PLC 5.1%
Nokia Oyj 4.6
Telefonaktiebolaget LM Ericsson 3.4
Royal Dutch Petroleum Co. 3.1
BP Amoco PLC 2.3
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Money Center Banks 10.0%
Telecommunication Equipment 9.6
Medical: Drugs 8.8
Oil Companies: Integrated 7.2
Multi-line Insurance 6.8
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United Kingdom 30.0%
France 17.4
Netherlands 11.0
Germany 10.6
Switzerland 9.2
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF ADRIAN VAN TIGGELEN]
ADRIAN VAN TIGGELEN
Portfolio Management
Team Leader
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of primarily
European companies.
"In 'new economy' stocks we favored strong earnings growth stories, which led to
an overweighting in technology."
See page 16 for financial details.
QUESTION: How would you evaluate the Fund's performance over the last six
months?
ANSWER: Despite increased market volatility in European markets, the Fund posted
strong returns during this period, handily outperforming its benchmark, the
FT-Europe Index.
QUESTION: What strategies contributed to the Fund's success?
ANSWER: Sectors rotated in and out of favor over the course of the past six
months. In the end, investors' infatuation with "new economy" stocks ended
abruptly. The Fund's investments in this sector continued to prosper,
however, thanks to careful positioning and selective stock picking.
In "new economy" stocks we favored strong earnings growth stories, which
led to an overweighting in technology. At the same time, we avoided the more
expensive "hope" stocks -- meaning those companies offering possible growth
in the distant future. The Fund also maintained low exposure in the weak
performing cyclical sectors, such as automobiles, steel and paper.
QUESTION: What stocks in particular supported the Fund's technology gains?
ANSWER: Information technology hardware stocks, such as Nokia, Ericsson,
Alcatel, Siemens and Philips again contributed significantly. This was
largely due to very strong earnings figures and an improved outlook for
telecommunication equipment spending in particular.
QUESTION: What strategies detracted from the Fund's performance?
ANSWER: Our emphasis on defensive sectors, such as retailers, food producers and
utilities, hindered the Fund's performance. For example, positions in
Unilever, Stagecoach and Carrefour were all hurt by prevailing market
conditions. In addition, the Fund had a neutral to underweighted position in
telecommunication services stocks, which turned out to be a top performing
sector during this period.
QUESTION: What is your outlook for the European equity markets going forward?
ANSWER: We expect European equity markets to remain volatile over the summer
period, with sector leadership changing regularly. For example, we foresee
investors later this year turning away from financials and growth stocks and
coming back to "new economy" stocks -- although more selectively. Overall,
we expect conditions to yield respectable gains in the European equity
markets as the year progresses.
[ING FUNDS LOGO]
6 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 9
DATA AS OF 4/30/00
ING INTERNATIONAL EQUITY FUND
For investors seeking long-term growth
GROWTH OF A $10,000 INVESTMENT
ING International Equity Fund vs. MSCI EAFE Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares MSCI EAFE INDEX
<S> <C> <C> <C>
9425 10000 10000 10000
9604 10190 10190 10522
9849 10450 10440 10493
9670 10250 10240 10246
10094 10690 10680 10676
10556 11180 11170 11110
10075 10660 10650 10540
10547 11150 11150 10954
10905 11520 11520 11282
10877 11490 11480 11326
10716 11320 11320 11443
11140 11760 11760 11874
11894 12540 12540 12290
13471 13151 14196 13395
12576 14186 13253 12545
13334 13234 14028 12885
13304 14039 13986 13388
12330 12573 12960 12686
</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 MSCI EAFE 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 10.12% 11.04% 15.03% N/A 11.09%
Inception 16.48 18.15 20.79 16.24 18.62
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class I shares is
9/27/99; Class X shares is 2/16/99.
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 PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP FIVE HOLDINGS(1)
<S> <C>
Nokia Oyj 4.0%
Telefonaktiebolaget LM Ericsson 3.0
Deutsche Telekom AG 2.8
Toyota Motor Corp. 2.7
Total Fina Elf 2.6
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Telephone: Integrated 9.8%
Money Center Banks 7.1
Telecommunication Equipment 6.5
Oil Companies: Integrated 5.8
Cellular Telecommunications 4.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
Japan 20.4%
France 11.5
United Kingdom 10.6
Germany 9.8
Switzerland 7.5
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF JAMES P. WILLIAMS]
[PHOTO OF HAYES MILLER]
JAMES P. WILLIAMS
HAYES MILLER
Portfolio Managers
OBJECTIVE
GROWTH OF CAPITAL through investment in a diversified portfolio of stocks in
markets generally outside of the United States.
"We continue to anticipate strong economic and earnings growth in the global
markets."
See page 17 for financial details.
QUESTION: The Fund delivered strong results during the reporting period. What
contributed to your success?
ANSWER: The major factors were our selective market allocations and astute stock
selection within those markets. For example, we saw significant
contributions from our European holdings. Within Europe, we placed a special
emphasis on the so-called "new" economy stocks that did extremely well
through most of this period. Telecommunications and media stocks, in
particular, had strong runs at the end of 1999 and early 2000.
QUESTION: Tell us a little more about how market allocation decisions affected
the Fund.
ANSWER: Two strategies proved instrumental to the Fund's success, our
underweight in the UK, and our overweight to emerging markets. Our
relatively small position in the UK was the result of concern that the
country's higher interest rates would have an exaggerated effect on the
market compared to other countries.
The Fund's relatively large position in emerging markets was beneficial,
due to a strong profit environment, and supported by a rising return on
equity and falling cost of capital.
QUESTION: Which of the Fund's market allocation decisions did not work out as
well?
ANSWER: While we remain optimistic about the long-term prospects for Singapore
and Hong Kong, these markets did not perform well for the Fund in the
beginning of 2000. We suspect this situation might be the result of a
technical pullback after a very strong 1999.
QUESTION: How did currency returns affect the Fund's performance?
ANSWER: Currency returns have been detrimental to absolute performance, but
still proved to be a positive relative to the benchmark. This was mostly the
result of the Fund's emerging markets exposure, where the currencies tend to
trade closer to the strong U.S. dollar.
QUESTION: What opportunities do you see in the global markets going forward?
ANSWER: We continue to anticipate strong economic and earnings growth in the
global markets. However, there will be significant imbalances. Specifically,
we favor Europe, Asia and emerging markets such as India and Korea.
European equities should benefit from recent restructuring, a weaker
currency, and the room for productivity enhancement through technology. The
Asian markets offer the best values in the world by many measures. However,
we are still cautious on Japan. And emerging markets stand to benefit from
the "new" economy, with software companies in India and wireless companies
in Korea turning into strong global competitors.
[ING FUNDS LOGO]
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 7
<PAGE> 10
DATA AS OF 4/30/00
ING GLOBAL BRAND NAMES FUND
For investors seeking long-term growth
GROWTH OF A $10,000 INVESTMENT
ING Global Brand Names Fund vs. MSCI World Index: 12/15/98 - 4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares MSCI World Index
<S> <C> <C> <C>
9425 10000 10000 10000
10028 10640 10640 10647
10547 11180 11180 10881
10075 10680 10680 10593
10509 11130 11130 11036
10396 11000 11000 11473
10123 10710 10710 11055
10613 11230 11230 11572
10631 11240 11250 11539
10669 11270 11280 11520
10217 10790 10790 11410
10905 11500 11510 12004
11244 11860 11870 12344
12489 13252 13170 13345
11944 12674 12583 12582
11734 12350 12360 12617
12584 13252 13252 13490
12221 12446 12856 12921
</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 MSCI World 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 10.83% 11.79% 15.88% 11.77%
Inception 15.74 17.29 20.09 11.80
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class X shares is
1/14/99.
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 PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP FIVE HOLDINGS(1)
<S> <C>
Intel Corp. 6.3%
Time Warner Inc. 5.7
Heineken NV 5.0
Microsoft Corp. 4.7
L'Oreal 4.6
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Cosmetics & Toiletries 11.0%
Multimedia 9.0
Telecommunication Equipment 7.5
Beverages: Non-alcoholic 7.2
Auto-Cars/Light Trucks 7.1
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 61.0%
Netherlands 9.4
Japan 8.5
France 7.1
Finland 4.2
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF HERMAN KLEEVEN]
HERMAN KLEEVEN
Portfolio Management
Team Leader
OBJECTIVE
GROWTH OF CAPITAL through investment in a non-diversified portfolio of
multi-national companies with well-known brands.
"...economic growth...led to an increase in demand for many brand name consumer
products."
See page 19 for financial details.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund generated strong returns, easily outpacing the return of its
benchmark, the MSCI World Index.
QUESTION: What were some of the factors that affected the Fund during the
reporting period?
ANSWER: Strong economic growth in the U.S. and in many international developed
countries led to an increase in demand for many brand name consumer
products. Stocks of these companies also benefited from the ongoing economic
recovery in the emerging market economies.
However, in many instances this growth was accompanied by mounting
inflationary pressures. As a result, the Federal Reserve and many central
banks have raised interest rates in an attempt to temper growth and ward off
inflation. This contributed to uncertainty in the financial markets, and a
broad-based stock market correction occurred later in the reporting period.
QUESTION: What were some of the strategies you used to enhance performance?
ANSWER: Despite the sell-off in the global technology, media and
telecommunications sectors, several of the Fund's stocks in those areas
continued to perform well. For example, both Ericsson and Nokia turned in
results that were clearly above expectations. And we believe that European
telecommunication equipment manufacturers are poised to benefit from the
building of the infrastructure for the third generation licenses, which are
being auctioned this year. The Fund's holdings in technology leaders Cisco
Systems and Intel also aided performance.
QUESTION: Were there any areas that detracted from results?
ANSWER: The Fund's holding in Microsoft hurt performance. The U.S. Justice
Department's decision to break up the company into two separate entities
caused Microsoft's stock price to fall sharply. Procter & Gamble was another
disappointment. Rising paper pulp and oil costs and lower than anticipated
sales led to poor results in its share price.
QUESTION: What is your outlook for the Fund going forward?
ANSWER: We believe that current market pressures are eliminating many of the
speculative excesses in the financial markets. In the shorter-term, some
further downside for the technology sector is possible, and there may be a
temporary contagion to other sectors as well. However, at this stage we do
not expect a bear market to emerge. In fact, we could see calmer waters in
the second half of this year, with the global economic expansion continuing.
Longer term, we remain positive for investments in global stock markets in
general, and global brand name companies in particular.
[ING FUNDS LOGO]
8 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 11
DATA AS OF 4/30/00
ING INTERNATIONAL BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME AND GROWTH POTENTIAL
GROWTH OF A $10,000 INVESTMENT
ING International Bond Fund vs. SB Non-US World Gov't. Bond Index: 12/15/98 -
4/30/2000
[LINE GRAPH]
<TABLE>
<CAPTION>
SB Non-US World
Class A shares Class B shares Class C shares Gov't. Bond Index
<S> <C> <C> <C>
9524 10000 10000 10000
9499 9970 9970 9960
9366 9822 9825 9804
8959 9390 9391 9460
8925 9349 9360 9477
8862 9288 9279 9463
8686 9089 9100 9272
8532 8923 8934 9051
8650 9041 9052 9369
8577 8960 8971 9429
8639 9020 9031 9604
8556 8929 8941 9594
8346 8704 8716 9462
8320 8673 8685 9453
8128 8468 8469 9168
8108 8442 8454 9025
8227 8561 8573 9343
7961 7948 8291 8935
</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 SB Non-US World Gov't. Bond 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 -14.43% -15.22% -11.51% N/A -15.11%
Inception -15.31 -15.41 -12.76 -7.79 -15.36
</TABLE>
Inception dates: Class A, B, and C shares is 12/15/98; Class I shares is
7/29/99; 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 PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 22.7%
Germany 17.1
Japan 5.6
Italy 5.2
United Kingdom 5.2
</TABLE>
<TABLE>
<CAPTION>
REGIONAL ALLOCATION(1)
<S> <C>
Europe 56.8%
North America 27.5
Supra-National Entity 9.4
Pacific Rim 6.3
</TABLE>
<TABLE>
<CAPTION>
CREDIT ALLOCATION(1)
<S> <C>
U.S. Treasury 16.1%
U.S. Government 6.0
AAA/AA 70.6
NR/NR 6.7
Repurchase Agreement 0.6
</TABLE>
MANAGER'S OVERVIEW
[PHOTO OF PAUL THURSBY]
PAUL THURSBY
Portfolio Management
Team Leader
OBJECTIVE
HIGH TOTAL RETURN through investment in a non-diversified portfolio of bonds
from issuers generally outside of the U.S.
"IT'S OUR BELIEF THAT A REBOUND IN PERFORMANCE COULD OCCUR AS THE YEAR
PROGRESSES."
See page 20 for financial details.
QUESTION: How has the Fund performed versus its benchmark?
ANSWER: Overall, it has continued to be a challenging period for international
bond investors. However, despite this environment the Fund has performed in
line with its benchmark.
QUESTION: Why have international bonds underperformed?
ANSWER: The growth rates in many international countries have been quite strong.
Because of this, many central banks have been raising interest rates in an
attempt to cool off their respective economies and ward off inflation. These
rising rates have taken their toll on many fixed income markets throughout
the world.
QUESTION: Much has been said about the economic conditions in Japan. Could you
provide a summary?
ANSWER: Despite many false alarms, the long-awaited recovery in the Japanese
economy may finally be taking shape. While many areas of the economy remain
suspect, corporate restructuring and government intervention has led to
optimism. As such, bond yields have moved higher and the Fund benefited by
maintaining an underweight position in Japan.
QUESTION: What other strategies enhanced the Fund's performance?
ANSWER: Our overweight position in UK bonds also aided returns. The UK Monetary
Policy Committee has done an admirable job in managing the economy, and the
country is enjoying very low levels of inflation. In addition, debt
repayment has caused a shortage of supply, which has further aided returns.
QUESTION: What detracted from performance?
ANSWER: Of course, we were unable to avoid the negative impact of rising
interest rates throughout the world. Several of the Fund's currency
strategies also hindered results. For example, we held an underweight
position in the Japanese yen. However, strong growth rates caused foreign
interest in Japanese equities to increase. And Japanese exports grew
strongly. Despite Central Bank intervention, the yen strengthened throughout
the period.
Our overweight in the euro also was damaging. By most measures the euro
appears undervalued, and we expected the solid prospects for a revival in
growth to lead to less enthusiasm for U.S. equities. This, in turn, would
provide support for the euro. However, this scenario did not pan out.
QUESTION: What is your outlook for the international bonds?
ANSWER: It's our belief that a rebound in performance could occur as the year
progresses. We expect monetary policy tightening in the U.S. and Europe will
head off inflationary pressures. When this becomes evident quality
government bonds should perform well.
[ING FUNDS LOGO]
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 9
<PAGE> 12
APRIL 30, 2000 (UNAUDITED)
FOOTNOTES
FOR FUND PERFORMANCE PAGES 3-9
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 maximum initial 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 current Fund prospectus.
GLOBAL/INTERNATIONAL: There are special risks associated with foreign investing,
including currency fluctuations, lower liquidity, political and economic
uncertainties and differences in accounting standards.
ING EMERGING MARKETS EQUITY FUND: The Fund focuses its investments in emerging
market countries and will tend to have higher volatility than a fund with more
geographic diversification.
ING GLOBAL COMMUNICATIONS FUND: The Fund concentrates its investments in
communications-related companies and will tend to experience more volatility
than funds with more diversified portfolios.
ING GLOBAL INFORMATION TECHNOLOGY FUND: The Fund concentrates its investments in
information technology-related companies and will carry more risks than funds
with more diversified portfolios.
ING GLOBAL BRAND NAMES FUND AND ING INTERNATIONAL BOND FUND: Each Fund is
classified as a nondiversified 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 large 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.
10 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 13
BENCHMARKS
MSCI EMERGING MARKETS FREE INDEX covers 28 emerging markets. The World Bank's
1966 definition of an emerging market is based on a country's Gross Domestic
Product per Capita (GDP/per Capita) which currently is USD 9,385 as a
high-income country.
NASDAQ TELECOMMUNICATION INDEX is comprised of over 260 telecommunication
securities including point-to-point communication services, radio and television
broadcast.
GOLDMAN SACHS TECHNOLOGY INDUSTRY COMPOSITE INDEX is a modified
capitalization-weighted index currently composed of 190 companies involved in
the technology industry. It includes reinvestment of dividends and capital
gains.
FT-EUROPE INDEX is average weighted by the market value of the performance of
securities listed on the Stock Exchange of Austria, Belgium, Denmark, Finland,
France, Germany, Ireland, Italy, Netherlands, Norway, Spain, Sweden, Switzerland
and UK.
MSCI EAFE INDEX is a stock index designed to measure the investment returns of
developed countries outside of North America. The Index is composed of
approximately 1000 companies representing 18 countries. The average company has
a market capitalization of over $3 billion. This is a total return Index with
reinvestment of distributions.
MSCI WORLD INDEX is average weighted by market value of the performance of
approximately 1450 securities representing 20 countries, including USA, Europe,
Canada, Australia, New Zealand, and the Far East. The average company in the
index has a market capitalization of about $3.5 billion. This is a total Index
with dividends reinvested.
SALOMON BROTHERS NON-US WORLD GOVERNMENT INDEX includes a wide range of foreign
government bonds with maturities over 1 year.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 11
<PAGE> 14
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
FOREIGN STOCK -- 95.7%
ARGENTINA -- 0.5%
2,500 Banco de Galicia y Buenos Aires
SA de CV -- Sponsored ADR $ 43,281
BRAZIL -- 12.0%
3,000 Aracruz Celulose SA -- Sponsored ADR 56,062
2,000 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar -- Sponsored ADR 57,000
3,300 Companhia Cervejaria Brahma -- Sponsored ADR 51,150
8,800 Companhia Paranaense de Energia-
Copel -- Sponsored ADR 64,900
2,500 Companhia Siderurgica Nacional --
Sponsored ADR 66,563
3,900 Companhia Vale do Rio Doce --
Sponsored ADR 96,611
10,300 Embratel Participacoes SA -- ADR* 231,750
6,900 Petroleo Brasileiro SA -- ADR* 163,471
1,600 Tele Centro Sul Participacoes SA -- ADR* 102,000
7,485 Tele Norte Leste Participacoes SA -- ADR* 133,318
600 Telemig Celular Participacoes SA -- ADR 35,100
2,800 Uniao de Bancos Brasileiros SA --
Sponsored GDR 69,825
----------
1,127,750
CHILE -- 1.7%
2,100 Compania de Telecomunicaciones de Chile
SA -- Sponsored ADR(1) 38,850
2,100 Distribucion y Servicio D&S SA -- ADR 35,700
2,400 Embotelladora Andina SA -- A Shares ADR 27,900
2,000 Empresa Nacional de Electricidad SA --
Sponsored ADR 23,000
900 Vina Concha Y Toro SA -- Sponsored ADR 34,819
----------
160,269
GREECE -- 0.9%
4,000 Hellenic Telecommunications Organization SA 89,777
HONG KONG -- 2.2%
18,000 China Telecom (Hong Kong) Ltd.(1) 129,988
16,000 Citic Pacific Ltd. 73,332
----------
203,320
HUNGARY -- 1.2%
2,700 Magyar Tavkozlesi Rt -- Sponsored ADR 93,994
400 OTP Bank Rt -- Sponsored GDR 17,790
----------
111,784
INDIA -- 5.6%
3,300 Ashok Leyland Ltd. -- GDR 18,315
2,900 Dr. Reddy's Laboratories Ltd. -- GDR(2) 85,692
1,800 Hindalco Industries Ltd. -- Sponsored GDR(2) 30,600
2,819 ICICI Bank Ltd. -- Sponsored ADR(1) 48,628
3,100 ITC Ltd. -- Sponsored GDR 52,855
5,300 Larson & Toubro Ltd. -- S Shares GDR* 72,875
4,400 Mahanagar Telephone Nigam Ltd. -- GDR(1)(2)* 57,475
3,100 Pentamedia Graphics Ltd. -- GDR(1)* 63,550
1,400 Reliance Industries Ltd. -- Sponsored GDR(2) 36,435
3,400 Videsh Sanchar Nigam Ltd. --
Sponsored GDR(2)* 64,600
----------
531,025
INDONESIA -- 1.0%
91,000 PT Astra International Tbk(1) 36,861
22,000 PT Gudang Garam Tbk 34,810
53,500 PT Telekomunikasi Indonesia 23,364
----------
95,035
ISRAEL -- 5.4%
12,500 Bank Hapoalim Ltd. 38,394
15,000 Bank Leumi Le-Israel 32,596
11,700 Bezeq Israeli Telecommunication Corp. Ltd. 62,086
1,000 Check Point Software Technologies Ltd.(1)* 173,000
900 ECI Telecom Ltd. 25,031
250 Gilat Satellite Networks Ltd.(1) 21,469
500 IDB Holding Corp. Ltd. 17,263
1,000 Orbotech, Ltd.(1) 85,250
1,100 Teva Pharmaceutical Industries Ltd. --
Sponsored ADR 48,400
----------
503,489
MALAYSIA -- 2.6%
5,000 British American Tobacco (Malaysia) Berhad 38,816
16,400 Malayan Banking Berhad 68,189
13,000 Resorts World Berhad 42,079
28,000 Tenaga Nasional Berhad 92,842
----------
241,926
MEXICO -- 11.8%
6,800 Alfa, SA -- A Shares 21,498
7,600 Cemex SA de CV -- CPO 33,114
2,500 Coca-Cola Femsa SA -- Sponsored ADR 46,406
2,900 Fomento Economico Mexicano, SA de CV --
Sponsored ADR 119,625
35,500 Grupo Financiero Banamex Accival,
SA de CV -- O Shares(1) 128,645
3,000 Grupo Televisa SA -- Sponsored GDR(1) 190,313
7,600 Kimberly-Clark de Mexico, SA de CV --
A Shares 24,876
5,000 Panamerican Beverages, Inc. -- A Shares 82,188
6,200 Telefonos de Mexico SA -- L Shares
Sponsored ADR* 364,637
41,500 Wal-Mart de Mexico SA de CV -- Series V(1) 96,142
----------
1,107,444
PAKISTAN -- 0.4%
600 Pakistan Telecommunication Co. Ltd. --
Sponsored GDR(2) 33,840
PHILIPPINES -- 0.3%
1,680 Philippine Long Distance Telephone Co. 30,113
POLAND -- 1.0%
11,700 Telekomunikacja Polska SA -- GDR 89,797
RUSSIA -- 5.7%
2,900 AO Tatneft -- Sponsored ADR 35,344
2,800 OAO Lukoil Holding -- Sponsored ADR 166,600
7,700 RAO Unified Energy Systems -- GDR 142,931
3,400 Rostelecom -- Sponsored ADR(1) 66,088
8,000 Surgutneftegaz -- Sponsored ADR 121,400
----------
532,363
</TABLE>
12 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 15
ING EMERGING MARKETS EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
SOUTH AFRICA -- 7.7%
18,800 African Bank Investments Ltd.(1) $ 40,619
3,300 Anglo American Platinum Corp. Ltd. 79,817
1,100 AngloGold Ltd. 41,855
5,000 Barlow Ltd. 31,119
4,400 Bidvest Group Ltd. 32,446
3,200 De Beers Centenary AG Linked Unit 65,600
6,300 Dimension Data Holdings Ltd.(1) 41,347
44,100 FirstRand Ltd. 52,032
1,800 Impala Platinum Holdings Ltd. 55,270
1,100 Investec Group Ltd. 40,687
4,100 Johnnies Industrial Corp. Ltd. 52,002
18,700 Metropolitan Life Ltd. 21,236
12,800 Nampak Ltd. 29,827
2,000 Nedcor Ltd. 37,932
28,800 Sanlam Ltd. 34,192
3,900 Sappi Ltd. 27,321
7,400 Sasol Ltd. 43,436
----------
726,738
SOUTH KOREA -- 11.9%
2,700 Hyundai Electronics Industries Co.(1) 42,820
7,620 Korea Electric Power Corp. 223,158
1,040 Korea Telecom Corp. -- Sponsored ADR 35,880
3,360 L.G. Chemical Ltd. 77,207
920 Pohang Iron & Steel Co. Ltd. 71,959
4,970 Pohang Iron & Steel Co. Ltd. --
Sponsored ADR 104,370
1,780 Samsung Electronics 481,189
94 Samsung Fire & Marine Insurance Co. 1,915
300 SK Telecom Co., Ltd. 79,748
----------
1,118,246
TAIWAN -- 15.9%
16,000 Asustek Computer Inc. -- GDR 211,200
15,600 China Steel Corp. -- Sponsored ADR(2) 221,291
6,000 Evergreen Marine Corp. -- Sponsored GDR(1) 47,400
8,000 Synnex Technology International
Corp. -- GDR 215,400
9,440 Taiwan Semiconductor Manufacturing
Co. Ltd. -- Sponsored ADR(1) 493,830
10,000 Winbond Electronics Corp. -- GDR(1)(2) 308,874
----------
1,497,995
THAILAND -- 2.2%
3,700 Advanced Info Service Public Co. Ltd. --
Foreign Registered(1) 43,352
9,300 BEC World Public Co. Ltd. --
Foreign Registered 61,568
3,300 PTT Exploration & Production Public
Co. Ltd. -- Foreign Registered 16,732
80,300 Thai Farmers Bank Public Co. Ltd. --
Foreign Registered(1) 84,382
----------
206,034
TURKEY -- 4.9%
390,500 Arcelik AS 33,210
1,898,900 Dogan Yayin Holding AS(1) 45,808
147,700 Enka Holding Yatirim AS 34,422
1,700,000 Hurriyet Gazetecilik ve Matbaacilik AS(1) 43,095
600,000 Tupras-Turkiye Petrol Rafinerileri AS 41,214
5,697,900 Turkiye Garanti Bankasi AS(1) 95,984
1,301,400 Turkiye Is Bankasi -- C Shares 71,302
3,071,900 Yapi ve Kredi Bankasi AS 97,969
----------
463,004
UNITED KINGDOM -- 0.3%
3,600 South African Breweries PLC 26,547
VENEZUELA -- 0.5%
1,600 Compania Anonima Nacional Telefonos
de Venezuela -- ADR 46,400
TOTAL FOREIGN STOCK
(Cost -- $10,356,775) $8,986,177
OTHER INVESTMENT COMPANY -- 1.9%
12,700 India Fund Inc.(1)
(Cost -- $242,900) $ 181,769
REPURCHASE AGREEMENT -- 2.4%
$223,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $223,107;
(Fully collateralized by Fannie Mae Discount
Notes due 6/29/2000; Market value -- $232,356)
(Cost -- $223,000) $ 223,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $10,822,675)(3) $9,390,946
</TABLE>
* Security is partially segregated.
1. Non-income producing security.
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 $781,332 in market value or 8.3% of net assets.
3. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipts.
GDR -- Global Depository Receipts.
See Notes to Financial Statements.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 13
<PAGE> 16
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING GLOBAL COMMUNICATIONS FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 96.2%
CANADA -- 4.4%
25,250 Nortel Networks Corp.(1) $2,859,563
10,100 PMC-Sierra, Inc. 1,937,937
----------
4,797,500
FINLAND -- 2.4%
46,200 Nokia Oyj(1) 2,650,227
HONG KONG -- 0.9%
136,000 China Telecom (Hong Kong) Ltd. 982,129
ITALY -- 1.6%
121,300 Telecom Italia S.p.A.(1) 1,696,012
JAPAN -- 3.3%
108 NTT DoCoMo, Inc.(1) 3,609,833
NETHERLANDS -- 3.9%
15,300 Equant NV 1,184,371
29,500 United Pan-Europe Communications NV --
A Shares 1,073,543
48,900 VersaTel Telecom International NV 1,960,465
----------
4,218,379
SPAIN -- 0.9%
43,800 Telefonica SA(1) 974,759
SWEDEN -- 3.4%
41,900 Telefonaktiebolaget LM Ericsson AB --
B Shares(1) 3,724,964
UNITED KINGDOM -- 7.6%
94,100 British Telecommunications PLC(1) 1,680,404
39,500 COLT Telecom Group PLC 1,721,316
51,400 SEMA Group PLC(1) 830,656
877,000 Vodafone AirTouch PLC(1) 4,007,453
----------
8,239,829
UNITED STATES -- 67.8%
66,970 ADC Telecommunications, Inc. 4,068,427
15,040 Aether Systems, Inc. 2,503,925
65,110 Amdocs Ltd. 4,407,133
31,400 America Online, Inc. 1,878,112
5,900 At Home Corp. -- A Shares 109,888
49,560 AT&T Corp.(1) 2,313,833
33,000 AT&T Wireless Group 1,049,813
18,400 Bell Atlantic Corp.(1) 1,090,200
6,760 Broadcom Corp. -- A Shares 1,165,255
37,110 CIENA Corp. 4,587,724
33,390 Cisco Systems, Inc. 2,314,866
39,240 Comcast Corp. -- A Shares 1,530,360
40,260 Comverse Technology, Inc. 3,590,689
73,010 Convergys Corp. 3,212,440
58,290 CSG Systems International, Inc. 2,688,626
54,150 Global TeleSystems Group, Inc. 788,559
42,290 Infonet Services Corp. -- B Shares 713,644
52,730 ITC/DeltaCom, Inc. 1,733,499
38,570 JDS Uniphase Corp. 4,001,637
4,890 Juniper Networks, Inc. 1,040,042
1,400 Lucent Technologies Inc.(1) 87,062
33,980 MCI WorldCom, Inc. 1,543,966
57,520 Metromedia Fiber Network, Inc. -- A Shares 1,775,930
38,410 Micromuse Inc. 3,768,981
23,250 Motorola, Inc.(1) 2,768,203
18,150 Next Level Communications, Inc. 1,445,194
19,920 Nextel Communications, Inc. -- A Shares 2,179,995
23,200 Phone.com, Inc. 1,948,800
65,600 Qwest Communications International Inc. 2,845,400
18,060 Redback Networks Inc. 1,433,512
16,300 RF Micro Devices, Inc. 1,696,219
24,200 SBC Communications Inc.(1) 1,060,262
51,370 Sprint Corp. (PCS Group) 2,825,350
34,630 Vitesse Semiconductor Corp. 2,357,004
76,140 World Access, Inc. 1,199,205
----------
73,723,755
TOTAL COMMON STOCK
(Cost -- $122,766,615) $104,617,387
REPURCHASE AGREEMENT -- 3.8%
$4,176,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $4,177,998;
(Fully collateralized by Federal Home Loan Bank,
5.700% due 8/2/2002; Market value -- $4,262,456)
(Cost -- $4,176,000) $ 4,176,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $126,942,615)(2) $108,793,387
</TABLE>
1. Income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
14 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 17
ING Global Information Technology Fund
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 98.7%
CANADA -- 2.7%
39,815 Nortel Networks Corp.(1) $4,509,049
GERMANY -- 2.9%
3,723 SAP AG Preferred Shares(1) 2,189,823
22,632 Software AG(1) 2,612,993
------------
4,802,816
IRELAND -- 1.5%
52,863 SmartForce PLC -- Sponsored ADR 2,524,208
JAPAN -- 3.9%
19,200 Fuji Soft ABC Inc.(1) 1,137,725
159 NTT Data Corp.(1) 2,119,902
2,900 Softbank Corp. 714,226
5,800 Softbank Corp. -- New Shares 1,433,823
21,000 Sumisho Computer Systems Corp.(1) 1,055,784
------------
6,461,460
NETHERLANDS -- 2.9%
44,970 ASM Lithography Holding NV 1,757,936
12,397 Equant NV 959,650
12,325 Ordina Beheer NV 448,186
46,540 United Pan-Europe Communications
NV -- A Shares 1,693,650
------------
4,859,422
UNITED KINGDOM -- 2.1%
37,298 CMG PLC(1) 2,390,487
74,356 SEMA Group PLC(1) 1,201,639
------------
3,592,126
UNITED STATES -- 82.7%
45,809 Amdocs Ltd. 3,100,697
62,697 America Online, Inc. 3,750,064
24,902 Applied Materials, Inc. 2,535,335
101,590 BEA Systems, Inc. 4,901,718
11,566 BMC Software, Inc. 541,433
48,876 BroadVision, Inc. 2,147,489
27,977 Brocade Communications Systems, Inc. 3,469,148
30,317 Brooks Automation, Inc. 2,719,056
39,509 CIENA Corp. 4,884,300
84,444 Cisco Systems, Inc. 5,854,344
46,801 Citrix Systems, Inc. 2,857,786
33,274 Computer Associates International, Inc.(1) 1,857,105
38,006 Computer Sciences Corp. 3,099,864
35,928 Compuware Corp. 451,346
46,464 Convergys Corp. 2,044,416
28,759 Dell Computer Corp. 1,441,545
22,480 DoubleClick Inc. 1,705,670
41,733 EMC Corp. 5,798,279
6,009 Gadzoox Networks, Inc. 221,582
41,318 i2 Technologies, Inc. 5,340,352
21,779 Inktomi Corp. 3,352,605
38,297 Intel Corp.(1) 4,856,538
18,610 International Business Machines Corp.(1) 2,077,341
48,988 JDS Uniphase Corp. 5,082,505
21,934 KLA-Tencor Corp. 1,642,308
67,538 MarchFirst, Inc. 1,439,404
13,250 Micron Technology, Inc. 1,845,063
61,190 Microsoft Corp. 4,268,003
42,380 Motorola, Inc.(1) 5,045,869
58,888 Network Appliance, Inc. 4,354,032
67,096 Network Associates, Inc. 1,706,754
5,269 New Era of Networks, Inc. 165,315
81,861 Oracle Corp. 6,543,764
55,788 Razorfish, Inc. 1,056,485
30,464 RF Micro Devices, Inc. 3,170,160
36,433 Sapient Corp. 2,885,038
36,897 Siebel Systems, Inc. 4,533,719
17,453 Software.com, Inc. 1,411,511
65,082 Sun Microsystems, Inc. 5,983,476
20,129 Teradyne, Inc. 2,214,190
41,498 Texas Instruments Inc.(1) 6,758,987
57,850 VERITAS Software Corp. 6,205,316
23,897 Yahoo! Inc. 3,112,584
------------
138,432,496
TOTAL COMMON STOCK
(Cost -- $131,540,267) $165,181,577
REPURCHASE AGREEMENT -- 1.3%
$2,219,000 State Street Bank & Trust Co., 5.740% due 5/1/2000; Proceeds at
maturity -- $2,220,061; (Fully collateralized by Fannie Mae Discount
Notes due 6/29/2000; Market value -- $2,264,238) (Cost --
$2,219,000) $ 2,219,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $133,759,267)(2) $167,400,577
</TABLE>
1. 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 Global/International Mutual Funds Semi-Annual Report/April 30, 2000 15
<PAGE> 18
April 30, 2000 (Unaudited)
SCHEDULE OF INVESTMENTS
ING European Equity Fund
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
FOREIGN STOCK -- 97.9%
AUSTRIA -- 0.4%
2,910 Bank Austria AG $ 129,099
BELGIUM -- 0.0%
3 KBC Bancassurance Holding NV 110
DENMARK -- 0.8%
2,566 ISS AS(1) 162,227
306 Vestas Wind Systems AS 102,331
----------
264,558
FINLAND -- 4.9%
27,060 Nokia Oyj 1,552,276
1,430 Sonera Oyj 78,651
8,323 TJ Group Oyj(1) 53,646
----------
1,684,573
FRANCE -- 17.4%
3,325 Accor SA 123,480
1,189 Air Liquide SA 154,788
1,519 Alcatel SA 352,135
5,875 Alstom SA 146,396
4,193 Aventis SA -- Paris 230,617
2,518 Aventis SA -- Frankfurt 138,949
2,839 Axa SA 420,950
3,454 Banque Nationale de Paris 279,149
580 Canal Plus 111,783
1,837 Cap Gemini SA 360,724
5,454 Carrefour SA 355,009
1,639 Lafarge SA 135,740
1,596 Lagardere S.C.A 108,094
283 L'Oreal SA 191,927
1,021 Louis Vuitton Moet Hennessy 428,453
3,224 Renault SA 146,547
4,167 Rhodia SA 77,280
6,090 Sanofi-Synthelabo SA 227,270
1,747 Schneider Electric SA 114,350
990 Societe Generale -- A Shares 205,022
1,330 STMicroelectronics NV 253,791
711 Suez Lyonnaise des Eaux SA 111,499
4,350 Total Fina Elf SA 660,020
9,305 Usinor SA 122,235
4,765 Vivendi SA 471,307
----------
5,927,515
GERMANY -- 10.6%
1,138 Allianz AG -- Registered Shares 438,134
6,349 Bayer AG 262,909
4,141 Deutsche Bank AG -- Registered Shares 278,203
2,840 Dresdner Bank AG 117,732
910 Fresenius AG -- Preferred Shares 204,338
3,642 HypoVereinsbank 225,475
209 Marschollek, Lautenschlaeger
und Partner AG -- Preferred Shares 110,581
3,751 Metro AG 142,369
968 Muenchener Rueckversicherungs-Gesellschaft
AG -- Registered Shares 282,483
1,047 SAP AG 491,143
983 Schering AG 138,962
3,779 Siemens AG 557,580
8,010 Thyssen Krupp AG 167,483
4,343 Veba AG 214,586
----------
3,631,978
GREECE -- 0.3%
1,842 Alpha Credit Bank SA 102,148
IRELAND -- 0.7%
18,422 Bank of Ireland 123,931
7,993 CRH PLC 127,817
----------
251,748
ITALY -- 4.0%
7,310 Assicurazioni Generali 208,005
4,673 Banca Fideuram S.p.A 69,671
35,156 Banca Nazionale Del Lavoro S.p.A 115,057
1,201 Bipop-Carire S.p.A 109,183
10,319 San Paolo-IMI S.p.A 144,467
19,911 Telecom Italia Mobile S.p.A 190,061
21,800 Telecom Italia S.p.A 304,807
15,464 Telecom Italia S.p.A. -- RNC 97,424
28,302 UniCredito Italiano S.p.A 114,753
----------
1,353,428
NETHERLANDS -- 11.0%
15,304 ABN Amro Holding NV 315,126
4,681 Aegon NV 336,397
2,795 Equant NV(1) 216,361
17,621 Fortis (NL) NV 443,092
3,050 Heineken Holding NV -- A Shares 102,731
6,801 Koninklijke Ahold NV 158,589
2,019 Koninklijke KPN NV 203,462
5,823 Koninklijke Nedlloyd NV 123,078
11,000 Koninklijke (Royal) Philips Electronics NV 490,705
17,783 Royal Dutch Petroleum Co. 1,024,958
3,800 TNT Post Group NV 82,910
1,542 Versatel Telecom International NV(1) 61,821
3,630 VNU NV 194,207
----------
3,753,437
PORTUGAL -- 0.8%
26,000 Portugal Telecom SA -- Registered Shares 290,021
SPAIN -- 3.0%
12,992 Banco Bilbao Vizcaya Argentaria SA 177,165
19,266 Banco Santander Central Hispano, SA 200,894
9,296 Endesa SA 201,641
19,222 Telefonica SA(1) 427,781
----------
1,007,481
SWEDEN -- 4.8%
30,348 Nordic Baltic Holding AB 188,987
6,755 Skandia Forsakrings AB 323,245
12,606 Telefonaktiebolaget LM Ericsson AB --
B Shares 1,120,690
----------
1,632,922
SWITZERLAND -- 9.2%
2,253 ABB Ltd. 251,311
336 Adecco SA -- Registered Shares 275,506
129 Compagnie Financiere Richemont AG --
A Units 313,212
1,359 Credit Suisse Group -- Registered Shares 245,308
248 Nestle SA -- Registered Shares 436,878
289 Novartis AG -- Registered Shares 403,431
71 Roche Holding AG 740,980
47 Swiss Re -- Registered Shares 75,469
127 The Swatch Group AG -- B Shares 136,000
1,139 UBS AG -- Registered Shares 278,859
----------
3,156,954
</TABLE>
16 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 19
ING EUROPEAN EQUITY FUND (continued)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
UNITED KINGDOM -- 30.0%
8,828 Abbey National PLC $ 100,746
12,900 Alliance & Leicester PLC 129,341
23,536 Allied Zurich PLC 234,150
5,312 AstraZeneca Group PLC 222,552
9,415 Bank of Scotland 83,772
10,481 Barclays PLC 269,082
45,477 BG Group PLC 274,716
87,844 BP Amoco PLC 758,358
32,419 British Telecommunications PLC 578,927
15,523 Cable & Wireless PLC 257,387
32,536 Cadbury Schweppes PLC 221,110
24,679 CGU PLC 353,681
1,475 CMG PLC 95,922
1,500 COLT Telecom Group PLC(1) 65,366
12,936 Compass Group PLC 185,087
32,829 Diageo PLC 265,013
12,918 Glaxo Wellcome PLC 399,425
37,420 HSBC Holdings PLC 415,097
51,612 Invensys PLC 248,497
18,342 J. Sainsbury PLC 95,665
12,000 Kingfisher PLC 98,832
34,200 Legal & General Group PLC 89,320
31,888 Lloyds TSB Group PLC 311,283
19,558 Marconi PLC 243,903
12,128 Pearson PLC 414,273
14,785 Prudential PLC 228,922
71,763 Rentokil Initial PLC 194,686
9,705 Reuters Group PLC 172,402
4,520 Royal Bank of Scotland Group PLC 70,407
27,090 ScottishPower PLC 217,736
37,127 SmithKline Beecham PLC 508,378
78,951 Tesco PLC 268,578
54,873 Unilever PLC 328,058
372,215 Vodafone AirTouch PLC 1,700,837
10,099 WPP Group PLC 152,514
-----------
10,254,023
TOTAL FOREIGN STOCK
(Cost -- $29,733,356) $33,439,995
REPURCHASE AGREEMENT -- 2.1%
$708,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $708,339;
(Fully collateralized by Federal Home Loan Bank,
6.390% due 2/7/2001; Market value -- $723,267)
(Cost -- $708,000) $ 708,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $30,441,356)(2) $34,147,995
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
FOREIGN STOCK -- 91.7%
BRAZIL -- 1.2%
17,975 Embratel Participacoes SA -- ADR $ 404,438
16,265 Tele Norte Leste Participacoes SA -- ADR 289,718
----------
694,156
CHINA -- 0.6%
1,836,000 Yizheng Chemical Fibre Co., Ltd. --
H Shares(1) 355,924
FINLAND -- 3.6%
35,640 Nokia Oyj 2,044,460
FRANCE -- 11.5%
3,180 Axa SA 471,512
5,780 Banque Nationale de Paris 467,134
4,220 Canal Plus 813,317
2,260 Castorama Dubois Investissement SA 493,096
3,500 Christian Dior SA 832,054
6,850 France Telecom SA 1,059,892
500 Havas Advertising SA 249,548
2,350 Societe Generale -- A Shares 486,668
8,915 Total Fina Elf SA 1,352,662
20,650 Usinor SA 271,269
----------
6,497,152
GERMANY -- 9.8%
2,430 Allianz AG -- Registered Shares 935,559
6,540 BASF AG 282,709
11,408 Deutsche Bank AG -- Registered Shares 766,418
22,690 Deutsche Telekom AG -- Registered Shares 1,454,237
1,590 Muenchener Rueckversicherungs AG --
Registered Shares 463,996
1,340 SAP AG -- Preferred Shares 788,172
5,630 Siemens AG 830,689
----------
5,521,780
HONG KONG -- 4.7%
121,200 Cable & Wireless HKT Ltd. 285,526
38,000 Cheung Kong (Holdings) Ltd. 453,705
98,000 China Telecom (Hong Kong) Ltd.(1) 707,711
18,700 Hang Seng Bank Ltd. 172,255
72,000 Hutchison Whampoa Ltd. 1,049,145
----------
2,668,342
HUNGARY -- 0.4%
6,750 Magyar Tavkozlesi Rt -- Sponsored ADR 234,984
INDIA -- 0.5%
9,100 Mahanagar Telephone Nigam Ltd. -- GDR(1)(2) 118,869
8,200 Videsh Sanchar Nigam Ltd. -- Sponsored GDR(2) 162,360
----------
281,229
INDONESIA -- 0.3%
10,400 PT Indosat (Persero) Tbk -- ADR 138,450
ITALY -- 2.9%
56,750 Autostrade-Concessioni e Costruzioni
Autostrade S.p.A 382,292
21,340 San Paolo-IMI S.p.A 298,763
102,220 Telecom Italia Mobile S.p.A 975,746
----------
1,656,801
</TABLE>
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 17
<PAGE> 20
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING INTERNATIONAL EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
JAPAN -- 20.4%
21,000 Canon Inc. $ 960,511
97,300 The Chuo Mitsui Trust & Banking Co., Ltd. 438,731
43,000 Daiwa Securities Group Inc. 656,914
14,000 Fuji Photo Film Co., Ltd. 561,270
200 Hikari Tsushin, Inc. 28,888
63,000 Hitachi, Ltd. 752,465
21,000 Kao Corp. 639,693
28,000 Matsushita Electric Industrial Co., Ltd. 741,447
50,000 Mitsubishi Corp. 435,165
2,700 Nintendo Co., Ltd. 449,979
67,000 Nippon Express Co., Ltd. 423,073
101 Nippon Telegraph & Telephone Corp. 1,253,090
2,680 Orix Corp. 382,627
6,200 Promise Co., Ltd. 502,292
3,000 Seven-Eleven Japan Co., Ltd. 369,427
13,000 Takeda Chemical Industries, Ltd. 855,794
5,000 TDK Corp. 669,876
28,000 Toyota Motor Corp. 1,392,158
-----------
11,513,400
MEXICO -- 0.8%
3,300 Grupo Televisa SA -- Sponsored GDR(1) 209,344
14,200 Panamerican Beverages, Inc. -- A Shares 233,412
-----------
442,756
NETHERLANDS -- 4.9%
26,492 Koninklijke (Royal) Philips Electronics NV 1,181,796
12,450 KPNQwest NV(1) 517,246
10,650 Royal Dutch Petroleum Co. 613,833
19,190 TNT Post Group NV 418,695
-----------
2,731,570
RUSSIA -- 0.7%
25,900 Surgutneftegaz -- Sponsored ADR 393,032
SINGAPORE -- 2.9%
8,000 Chartered Semiconductor Manufacturing Ltd.(1) 68,913
39,000 DBS Group Holdings Ltd. 537,064
29,550 Oversea-Chinese Banking Corp. Ltd. 202,599
25,000 Singapore Press Holdings Ltd. 489,306
220,000 Singapore Telecommunications Ltd. 317,140
-----------
1,615,022
SOUTH AFRICA -- 0.7%
18,100 De Beers Centenary AG -- Linked Units 371,049
SOUTH KOREA -- 0.7%
6,500 Korea Telecom Corp. -- Sponsored ADR 224,250
2,400 Samsung Electronics -- Sponsored GDR(2) 194,700
-----------
418,950
SPAIN -- 2.3%
21,914 Banco Santander Central Hispano, SA 228,506
15,050 Endesa SA 326,451
33,238 Telefonica SA(1) 739,704
-----------
1,294,661
SWEDEN -- 3.8%
11,450 Sandvik AB -- A Shares 275,873
6,350 Skandia Forsakrings AB 303,865
17,590 Telefonaktiebolaget LM Ericsson AB --
B Shares 1,563,774
-----------
2,143,512
SWITZERLAND -- 7.5%
5,736 ABB Ltd. 643,169
1,280 Adecco SA -- Registered Shares 1,049,545
360 Compagnie Financiere Richemont AG --
A Units 874,080
2,390 Credit Suisse Group -- Registered Shares 431,410
520 PubliGroupe SA 400,765
56 Roche Holding AG 584,435
210 The Swatch Group AG -- B Shares 224,883
-----------
4,208,287
TAIWAN -- 0.9%
16,613 China Steel Corp. -- Sponsored GDR 235,697
10,200 Synnex Technology International Corp. -- GDR 274,635
-----------
510,332
UNITED KINGDOM -- 10.6%
106,600 BP Amoco PLC 920,279
44,000 British Telecommunications PLC 785,736
70,400 HSBC Holdings PLC 780,941
29,003 Logica PLC 877,809
115,804 New Dixons Group PLC 470,571
26,000 Shire Pharmaceuticals Group PLC(1) 369,172
238,466 Vodafone AirTouch PLC 1,089,671
45,277 WPP Group PLC 683,770
-----------
5,977,949
TOTAL FOREIGN STOCK
(Cost -- $48,169,582) $51,713,798
REPURCHASE AGREEMENT -- 8.3%
$4,652,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $4,654,225;
(Fully collateralized by Federal Home Loan Bank,
6.372% due 2/7/2001; Market value -- $4,747,157)
(Cost -- $4,652,000) $ 4,652,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $52,821,582)(3) $56,365,798
</TABLE>
1. Non-income producing security.
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 $475,929 in market value or 0.8% of net assets.
3. Aggregate cost for Federal income tax purposes is substantially the same.
ADR -- American Depository Receipts.
GDR -- Global Depository Receipts.
See Notes to Financial Statements.
18 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 21
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
------ -----
<S> <C>
COMMON STOCK -- 97.9%
AUSTRALIA -- 1.8%
467,700 Foster's Brewing Group Ltd. $ 1,181,590
FINLAND -- 4.2%
46,160 Nokia Oyj 2,647,932
FRANCE -- 7.1%
4,240 L'Oreal SA 2,875,520
3,810 Louis Vuitton Moet Hennessy 1,598,831
-----------
4,474,351
GERMANY -- 2.5%
9,700 Adidas-Salomon AG 610,224
26,390 Volkswagen AG 992,034
-----------
1,602,258
JAPAN -- 8.5%
16,000 Canon Inc. 731,818
12,000 Fuji Photo Film Co., Ltd. 481,089
34,000 Honda Motor Co., Ltd. 1,520,485
8,400 Sony Corp. 965,178
8,400 Sony Corp. -- New Shares(1) 972,177
14,000 Toyota Motor Corp. 696,079
-----------
5,366,826
NETHERLANDS -- 9.3%
12,860 Gucci Group NV -- NY Registered Shares 1,126,858
56,000 Heineken NV 3,105,486
36,000 Unilever NV -- Share Certificates 1,635,071
-----------
5,867,415
SWEDEN -- 3.3%
23,340 Telefonaktiebolaget LM Ericsson AB --
B Shares 2,074,956
SWITZERLAND -- 2.2%
807 Nestle SA -- Registered Shares 1,421,614
UNITED STATES -- 59.0%
6,120 America Online, Inc.(1) 366,052
12,480 American Express Co. 1,872,780
14,000 Cisco Systems, Inc.(1) 970,594
58,000 The Coca-Cola Co. 2,729,625
30,860 Colgate-Palmolive Co. 1,762,877
32,110 Compaq Computer Corp. 939,217
37,640 Dell Computer Corp.(1) 1,886,705
23,820 Ford Motor Co. 1,302,656
43,450 The Gillette Co. 1,607,650
31,000 Intel Corp. 3,931,188
25,000 Johnson & Johnson 2,062,500
61,730 McDonald's Corp. 2,353,456
42,000 Microsoft Corp.(1) 2,929,500
10,000 Motorola, Inc. 1,190,625
49,400 PepsiCo, Inc. 1,812,362
32,650 Philip Morris Cos. Inc. 714,219
12,350 The Procter & Gamble Co. 736,369
39,000 Time Warner Inc. 3,507,562
51,000 The Walt Disney Co. 2,208,938
17,700 Wm. Wrigley Jr. Co. 1,281,037
9,205 Yahoo! Inc.(1) 1,198,951
-----------
37,364,863
TOTAL COMMON STOCK
(Cost -- $53,661,763) $62,001,805
PREFERRED STOCK -- 0.1%
NETHERLANDS -- 0.1%
15,150 Unilever NV -- Cumulative Preferred Shares
(Cost -- $91,421) 70,930
REPURCHASE AGREEMENT -- 2.0%
$1,238,000 State Street Bank & Trust Co., 5.740%
due 5/1/2000; Proceeds at maturity -- $1,238,592;
(Fully collateralized by Federal Home Loan Bank,
6.372% due 2/7/2001; Market value -- $1,265,234)
(Cost -- $1,238,000) $ 1,238,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $54,991,184)(2) $63,310,735
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 19
<PAGE> 22
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING INTERNATIONAL BOND FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Ratings(1) Value
------ ---------- -----
<S> <C> <C>
FOREIGN BONDS -- 67.9%
AUSTRALIA -- 0.7%
230,000 Queensland Treasury Corp.,
Series 05G, 6.500%
due 6/14/2005(2) AAA/Aaa $ 133,458
AUSTRIA -- 2.2%
490,000 Republic of Austria, Series 98 2,
4.300% due 7/15/2003(3) AAA/Aaa 435,905
BELGIUM -- 5.0%
1,000,000 Kingdom of Belgium,
6.500% due 3/25/2002(4) AA+/Aa1 986,434
CANADA -- 4.8%
1,440,000 Canadian Government,
5.250% due 9/1/2003(5) AAA/Aa1 942,196
DENMARK -- 4.6%
7,270,000 Kingdom of Denmark,
6.000% due 11/15/2002(6) NR/NR 900,291
FRANCE -- 3.7%
798,000 French Treasury Notes,
4.500% due 7/12/2003(3) NR/Aaa 720,895
GERMANY -- 17.1%
153,000 Bundesobligation, Series 121,
4.750% due 11/20/2001(3) AAA/Aaa 139,578
Bundesrepublic Deutschland:
894,000 Series 97, 6.000% due 7/4/2007(3)* AAA/Aaa 843,841
2,040,000 Series 98, 5.625% due 1/4/2028(3) AAA/Aaa 1,839,977
600,000 Bundesschatzanweisungen,
Series 98, 3.250% due 9/15/2000(3) NR/Aaa 543,668
-----------
3,367,064
ITALY -- 5.2%
Buoni Poliennali del Tes:
830,000 3.750% due 9/1/2002(3) AA/Aa3 736,368
340,000 4.500% due 5/1/2009(3)* AA/Aa3 286,988
-----------
1,023,356
JAPAN -- 5.6%
150,000 Development Bank of Japan,
9.125% due 1/31/2005(7) AAA/Aa1 253,031
280,000 Japan Finance Corp.
Municipal Enterprise,
6.375% due 3/9/2004(7)* AAA/Aa1 430,315
260,000 Kansai International Airport Co.,
7.375% due 9/24/2007(7)* NR/NR 421,325
-----------
1,104,671
NETHERLANDS -- 4.2%
916,000 Netherlands Government,
5.250% due 7/15/2008(3)* NR/Aaa 825,550
SPAIN -- 4.6%
1,020,000 Bonos Y Oblig del Estado,
4.500% due 7/30/2004(3) NR/Aa2 907,721
SWEDEN -- 5.0%
8,700,000 Swedish Government, Series 1039,
5.500% due 4/12/2002(8) AAA/NR 978,419
UNITED KINGDOM -- 5.2%
630,000 United Kingdom Treasury,
5.750% due 12/7/2009(7) AAA/Aaa 1,021,611
TOTAL FOREIGN BONDS
(Cost -- $15,917,083) $13,347,571
U.S. GOVERNMENT AGENCIES & OBLIGATIONS -- 22.1%
300,000 Fannie Mae, Series EMTN,
6.875% due 6/7/2002(7) NR/Aaa $ 467,787
740,000 Tennessee Valley Authority, Series A
6.375% due 6/15/2005(4) NR/Aaa 708,944
U.S. Treasury Bonds,
1,260,000 6.125% due 8/15/2029(4) NR/NR 1,263,544
U.S. Treasury Notes:
240,000 7.250% due 8/15/2004(4) NR/NR 245,775
1,760,000 5.500% due 5/15/2009(4) NR/NR 1,657,700
-----------
1,903,475
TOTAL U.S. GOVERNMENT AGENCIES & OBLIGATIONS
(Cost -- $4,408,208) $ 4,343,750
SUPRA-NATIONAL ENTITY -- 9.4%
960,000 Asian Development Bank,
6.750% due 6/11/2007(4) AAA/Aaa 933,572
Inter-American Development Bank:
480,000 6.375% due 10/22/2007(4) AAA/Aaa 454,357
500,000 5.750% due 2/26/2008(4) AAA/Aaa 453,902
-----------
908,259
TOTAL SUPRA-NATIONAL ENTITY
(Cost -- $1,959,886) $ 1,841,831
REPURCHASE AGREEMENT -- 0.6%
$123,000 State Street Bank & Trust Co.,
5.740% due 5/1/2000;
Proceeds at maturity -- $123,059;
(Fully collateralized by Fannie Mae,
6.100% due 9/14/2001;
Market value -- $129,544)
(Cost -- $123,000) $ 123,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $22,408,177)(9) $19,656,152
</TABLE>
* Security is partially segregated.
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Security is denominated in Australian Dollar.
3. Security is denominated in EURO.
4. Security is denominated in United States Dollar.
5. Security is denominated in Canadian Dollar.
6. Security is denominated in Danish Kroner.
7. Security is denominated in British Pound.
8. Security is denominated in Swedish Kronor.
9. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
20 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 23
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
respect to capacity to pay interest and repay principal in accordance
CCC, CC 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.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 21
<PAGE> 24
FINANCIAL HIGHLIGHTS
ING EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1) Class X Shares(1)
throughout the period: 4/30/00(2) 4/30/00(2) 4/30/00(2) 4/30/00(2)
---------------------------------------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00
From investment operations:
Net investment income 0.01 0.00(7) 0.00(7) 0.00(7)
Net realized and unrealized loss(3) (1.50) (1.49) (1.50) (1.50)
--------- --------- --------- ---------
Total from investment operations (1.49) (1.49) (1.50) (1.50)
--------- --------- --------- ---------
Distributions paid from investment income -- -- -- --
--------- --------- --------- ---------
Net asset value per share, end of period $ 8.51 $ 8.51 $ 8.50 $ 8.50
NET ASSETS, END OF PERIOD (in thousands) $ 8,836 $ 288 $ 193 $ 44
Total investment return at net asset value(4,5) - 14.90% - 14.90% - 15.00% - 15.00%
Ratios to average net assets:(6)
Net expenses 1.68% 2.42% 2.39% 2.38%
Gross expenses 4.18% 4.51% 4.49% 4.48%
Net investment income 0.87% 0.22% 0.15% 0.07%
Portfolio turnover rate(5) 11.38% 11.38% 11.38% 11.38%
</TABLE>
1. Commenced operations on March 1, 2000. 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 - 13.30% for the period ended 4/30/00.
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 GLOBAL COMMUNICATIONS FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1) Class X Shares(1)
throughout the period: 4/30/00(2) 4/30/00(2) 4/30/00(2) 4/30/00(2)
---------------------------------------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $ 10.00 $ 10.00 $ 10.00 $ 10.00
From investment operations:
Net investment loss (0.01) (0.02) (0.02) (0.01)
Net realized and unrealized loss(3) (1.57) (1.57) (1.56) (1.56)
--------- --------- --------- ---------
Total from investment operations (1.58) (1.59) (1.58) (1.57)
--------- --------- --------- ---------
Distributions paid from investment income -- -- -- --
--------- --------- --------- ---------
Net asset value per share, end of period $ 8.42 $ 8.41 $ 8.42 $ 8.43
NET ASSETS, END OF PERIOD (in thousands) $ 61,982 $ 35,137 $ 9,573 $ 1,353
Total investment return at net asset value(4,5) - 15.80% - 15.90% - 15.80% - 15.70%
Ratios to average net assets:(6)
Net expenses 1.51% 2.15% 2.15% 2.13%
Gross expenses 2.71% 2.95% 2.95% 2.93%
Net investment loss - 0.67% - 1.32% - 1.34% - 1.34%
Portfolio turnover rate(5) 13.54% 13.54% 13.54% 13.54%
</TABLE>
1. Commenced operations on March 1, 2000. 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 - 14.01% for the period ended 4/30/00.
Total returns would be lower if part of the Fund's expenses were not waived or
reimbursed. 5. Not annualized. 6. Annualized.
22 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 25
FINANCIAL HIGHLIGHTS
ING GLOBAL INFORMATION TECHNOLOGY FUND
<TABLE>
<CAPTION>
For a share of beneficial interest Class A Shares(1) Class B Shares(1) Class C Shares(1) Class X Shares(2)
outstanding throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
---------------------------------- ---------- -------- ---------- -------- --------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period $ 17.38 $ 10.00 $ 17.28 $10.00 $ 17.28 $10.00 $17.29 $12.42
From investment operations:
Net investment loss (0.16) (0.13) (0.17) (0.08) (0.17) (0.05) (0.21) (0.13)
Net realized and unrealized gain(4) 12.29 7.51 12.18 7.36 12.17 7.33 12.19 5.00
-------- -------- ------- ------ ------- -------- ------ -------
Total from investment operations 12.13 7.38 12.01 7.28 12.00 7.28 11.98 4.87
-------- -------- ------- ------ ------- -------- ------ -------
Distributions paid from capital gain (0.84) -- (0.84) -- (0.84) -- (0.84) --
-------- -------- ------- ------ ------- -------- ------ -------
Net asset value per share, end of period $ 28.67 $ 17.38 $ 28.45 $17.28 $ 28.44 $17.28 $28.43 $17.29
NET ASSETS, END OF PERIOD (in thousands) $108,760 $54,798 $33,552 $5,964 $17,971 $2,102 $7,848 $2,545
Total investment return at net asset
value(5,6) 70.82% 73.80% 70.53% 72.80% 70.47% 72.80% 70.31% 39.21%
Ratios to average net assets:(7)
Net expenses 1.51% 1.57% 2.13% 2.25% 2.13% 2.24% 2.15% 2.25%
Gross expenses 2.69% 2.95% 2.91% 3.22% 2.90% 3.20% 2.92% 3.22%
Net investment loss -1.24% -1.29% -1.84% -2.04% -1.84% -2.05% -1.87% -2.02%
Portfolio turnover rate(6) 51.20% 56.88% 51.20% 56.88% 51.20% 56.88% 51.20% 56.88%
</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. Includes gains
and losses on foreign currency transactions. 5. Total return assumes
reinvestment of all dividend and capital gain distributions, if any, and does
not reflect the deduction of the applicable sales charges with respect to Class
A shares or the applicable contingent deferred sales charges with respect to
Class B, C, and X shares. Total return for Class X shares does not include the
2.00% bonus shares paid by the Distributor. If the effect of bonus shares was
included, total return for Class X shares would have been 73.72% for the six
months ended 4/30/00 and 42.00% 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 EUROPEAN EQUITY FUND
<TABLE>
<CAPTION>
For a share of beneficial interest Class A Shares(1) Class B Shares(1) Class C Shares(1) Class X Shares(2)
outstanding throughout each period: 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99 4/30/00(3) 10/31/99
----------------------------------- ---------- -------- ---------- -------- ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period $ 10.95 $ 10.00 $10.89 $10.00 $10.89 $10.00 $10.89 $10.53
From investment operations:
Net investment income (loss) (0.02) 0.04 (0.06) 0.00(8) (0.03) (0.01) (0.05) 0.01
Net realized and unrealized gain(4) 1.02 0.91 1.01 0.89 0.94 0.90 1.01 0.35
-------- -------- ------- ------ ------- -------- ------ -------
Total from investment operations 1.00 0.95 0.95 0.89 0.91 0.89 0.96 0.36
-------- -------- ------- ------ ------- -------- ------ -------
Distributions paid from:
Capital gain (0.28) -- (0.28) -- (0.28) -- (0.28) --
Investment income (0.05) -- (0.03) -- (0.05) -- (0.02) --
-------- -------- ------- ------ ------- -------- ------ -------
Total distributions (0.33) -- (0.31) -- (0.33) -- (0.30) --
-------- -------- ------- ------ ------- -------- ------ -------
Net asset value per share, end of period $ 11.62 $ 10.95 $11.53 $10.89 $11.47 $10.89 $11.55 $10.89
NET ASSETS, END OF PERIOD (in thousands) $32,009 $28,746 $1,028 $ 849 $ 173 $ 62 $ 854 $ 707
Total investment return at net asset
value(5,6) 9.22% 9.50% 8.75% 8.90% 8.37% 8.90% 8.87% 3.42%
Ratios to average net assets:(7)
Net expenses 1.62% 1.61% 2.27% 2.27% 2.26% 2.26% 2.27% 2.26%
Gross expenses 2.89% 3.06% 3.13% 3.35% 3.13% 3.34% 3.13% 3.35%
Net investment income (loss) -0.42% 0.48% -1.06% -0.08% -0.94% -0.15% -0.82% 0.11%
Portfolio turnover rate(6) 36.24% 62.91% 36.24% 62.91% 36.24% 62.91% 36.24% 62.91%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998. 2. Class X
shares commenced offering on January 15, 1999. 3. Unaudited. 4. Includes gains
and losses on foreign currency transactions. 5. Total return assumes
reinvestment of all dividend and capital gain distributions, if any, and does
not reflect the deduction of the applicable sales charges with respect to Class
A shares or the applicable contingent deferred sales charges with respect to
Class B, C, and X shares. Total return for Class X shares does not include the
2.00% bonus shares paid by the Distributor. If the effect of bonus shares was
included, total return for Class X shares would have been 11.04% for the six
months ended 4/30/00 and 5.49% 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 $.01.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 23
<PAGE> 26
FINANCIAL HIGHLIGHTS
ING INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
For a share of beneficial
interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1) 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 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> <C> <C> <C> <C>
Net asset value per share,
beginning of period $ 11.82 $ 10.00 $11.76 $ 10.00 $11.76 $ 10.00 $11.82 $ 11.29 $11.76 $ 10.24
From investment operations:
Net investment income (loss) (0.02) 0.04 (0.04) (0.01) (0.03) (0.01) 0.02 0.00(9) (0.05) (0.01)
Net realized and unrealized
gain(5) 1.29 1.78 1.26 1.77 1.24 1.77 1.29 0.53 1.28 1.53
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Total from investment
operations 1.27 1.82 1.22 1.76 1.21 1.76 1.31 0.53 1.23 1.52
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Distributions paid from:
Capital gain (0.50) -- (0.50) -- (0.50) -- (0.50) -- (0.50) --
Investment income (0.06) -- (0.07) -- (0.09) -- (0.12) -- (0.06) --
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Total distributions (0.56) -- (0.57) -- (0.59) -- (0.62) -- (0.56) --
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Net asset value per share,
end of period $ 12.53 $ 11.82 $12.41 $ 11.76 $12.38 $ 11.76 $12.51 $ 11.82 $12.43 $ 11.76
NET ASSETS, END OF PERIOD
(in thousands) $51,928 $32,106 $1,863 $ 680 $1,755 $ 417 $ 144 $ 89 $ 618 $ 347
Total investment return at
net asset value(6,7) 10.68% 18.20% 10.31% 17.60% 10.21% 17.60% 11.03% 4.69% 10.36% 14.84%
Ratios to average net
assets:(8)
Net expenses 1.58% 1.59% 2.21% 2.23% 2.21% 2.20% 1.02% 1.04% 2.22% 2.23%
Gross expenses 2.81% 3.04% 3.04% 3.30% 3.04% 3.39% 1.80% 2.63% 3.05% 3.32%
Net investment income (loss) -0.27% 0.44% -0.85% -0.32% -0.79% -0.59% 0.29% -0.03% -0.91% -0.24%
Portfolio turnover rate(7) 58.06% 105.44% 58.06% 105.44% 58.06% 105.44% 58.06% 105.44% 58.06% 105.44%
</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 February 16, 1999. 4. Unaudited. 5. Includes gains and losses on
foreign currency transactions. 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 12.57% 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. 7. Not annualized.
8. Annualized. 9. Amount represents less than $0.01.
FINANCIAL HIGHLIGHTS
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
For a share of beneficial
interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1) 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 4/30/00(4) 10/31/99 4/30/00(5) 10/31/99 4/30/00(4) 10/31/99
----------------------- ---------- -------- ---------- -------- ---------- -------- ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value per share,
beginning of period $ 11.57 $ 10.00 $11.50 $ 10.00 $ 11.51 $ 10.00 N/A $ 11.34 $11.52 $ 10.76
From investment operations:
Net investment loss (0.03) (0.02) (0.06) (0.04) (0.06) (0.06) N/A 0.00(10) (0.08) (0.05)
Net realized and
unrealized gain(6) 1.42 1.59 1.40 1.54 1.40 1.57 N/A 0.24 1.41 0.81
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Total from investment
operations 1.39 1.57 1.34 1.50 1.34 1.51 N/A 0.24 1.33 0.76
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Distributions paid from
capital gain (0.16) -- (0.16) -- (0.16) -- -- -- (0.16) --
------- ------- ------ ------ ----- ------ ----- ------ ----- ------
Net asset value per share,
end of period $ 12.80 $ 11.57 $12.68 $ 11.50 $ 12.69 $ 11.51 N/A $ 11.58 $12.69 $ 11.52
NET ASSETS, END OF PERIOD
(in thousands) $42,614 $35,376 $5,133 $ 2,841 $12,756 $ 7,548 N/A $ 461 $2,663 $ 2,316
Total investment return
at net asset value(7,8) 12.07% 15.70% 11.71% 15.00% 11.70% 15.10% N/A 2.12% 11.60% 7.06%
Ratios to average net
assets:(9)
Net expenses 1.51% 1.48% 2.15% 2.14% 2.15% 2.13% N/A 0.96% 2.16% 2.14%
Gross expenses 2.56% 2.68% 2.80% 2.93% 2.80% 2.93% N/A 1.68% 2.81% 2.93%
Net investment loss -0.57% -0.18% -1.19% -0.97% -1.19% -0.78% N/A -0.12% -1.23% -0.87%
Portfolio turnover rate(8) 17.44% 11.09% 17.44% 11.09% 17.44% 11.09% N/A 11.09% 17.44% 11.09%
</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 14, 1999. 4. Unaudited. 5. Class I shares were fully redeemed on
December 29, 1999. 6. Includes gains and losses on foreign currency
transactions. 7. 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 13.83% for the six months ended 4/30/00 and 9.20% for
the period ended 10/31/99. Total returns would be lower if part of the Fund's
expenses were not waived or reimbursed. 8. Not annualized. 9. Annualized. 10.
Amount represents less than $0.01.
24 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 27
FINANCIAL HIGHLIGHTS
ING INTERNATIONAL BOND FUND
<TABLE>
<CAPTION>
For a share of beneficial
interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1) 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 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> <C> <C> <C> <C>
Net asset value per share,
beginning of period $ 8.78 $ 10.00 $ 8.78 $ 10.00 $ 8.79 $ 10.00 $ 8.76 $ 8.97 $ 8.78 $ 9.87
From investment operations(5):
Net investment income 0.12 0.20 0.09 0.18 0.09 0.17 0.15 0.09 0.09 0.16
Net realized and unrealized
loss(6) (0.73) (1.21) (0.74) (1.25) (0.72) (1.23) (0.70) (0.21) (0.73) (1.11)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total from investment
operations (0.61) (1.01) (0.65) (1.07) (0.63) (1.06) (0.55) (0.12) (0.64) (0.95)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Distributions paid from:
Investment income (0.13) -- (0.10) -- (0.11) -- (0.17) -- (0.10) --
Return of capital -- (0.21) -- (0.15) -- (0.15) -- (0.09) -- (0.14)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total distributions (0.13) (0.21) (0.10) (0.15) (0.11) (0.15) (0.17) (0.09) (0.10) (0.14)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value per share,
end of period $ 8.04 $ 8.78 $ 8.03 $ 8.78 $ 8.05 $ 8.79 $ 8.04 $ 8.76 $ 8.04 $ 8.78
NET ASSETS, END OF PERIOD
(in thousands) $21,630 $ 23,630 $ 458 $ 520 $ 43 $ 14 -- $ 5 $ 572 $ 736
Total investment return
at net asset value(7,8) -6.96% -10.16% -7.39% -10.71% -7.26% -10.60% -6.53% -1.35% -7.27% -9.64%
Ratios to average net
assets:(9)
Net expenses 1.51% 1.48% 2.15% 2.12% 2.16% 2.13% 1.06% 1.03% 2.16% 2.12%
Gross expenses 2.85% 2.78% 3.09% 3.01% 3.10% 3.02% 1.84% 1.81% 3.10% 3.01%
Net investment income 2.89% 2.51% 2.21% 2.26% 2.08% 2.20% 3.43% 3.84% 2.26% 2.26%
Portfolio turnover rate(8) 44.18% 140.92% 44.18% 140.92% 44.18% 140.92% 44.18% 140.92% 44.18% 140.92%
</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 11, 1999. 4. Unaudited. 5. Per share calculation is based on average
number of shares outstanding during the period. 6. Includes gains and losses on
foreign currency transactions. 7. Total return assumes reinvestment of all
dividend and capital gain distributions, if any, and does not reflect the
deduction of the applicable sales charges with respect to Class A shares or the
applicable contingent deferred sales charges with respect to Class B, C, and X
shares. Total return for Class X shares does not include the 2.00% bonus shares
paid by the Distributor. If the effect of bonus shares was included, total
return for Class X shares would have been -5.41% for the six months ended
4/30/00 and -7.83% for the period ended 10/31/99. Total returns would be lower
if part of the Fund's expenses were not waived or reimbursed. 8. Not annualized.
9. Annualized.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 25
<PAGE> 28
APRIL 30, 2000 (UNAUDITED)
STATEMENTS OF ASSETS & LIABILITIES
<TABLE>
<CAPTION>
ING ING
EMERGING ING GLOBAL ING
MARKETS GLOBAL INFORMATION EUROPEAN
EQUITY COMMUNICATIONS TECHNOLOGY EQUITY
FUND FUND FUND FUND
---- ---- ---- ----
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at cost $10,599,675 $ 122,766,615 $ 131,540,267 $ 29,733,356
----------- ------------- ------------- -------------
Investments in securities, at value $ 9,167,946 $ 104,617,387 $ 165,181,577 $ 33,439,995
Repurchase agreements, at value 223,000 4,176,000 2,219,000 708,000
Cash 23,068 -- 31,884 4,939
Foreign currency, at value 10,864 -- -- 43,485
Receivable for investment securities sold 54,607 -- -- 762,702
Receivable for fund shares sold -- 1,030,087 1,074,495 36,000
Receivable for open foreign currency contracts
(Note 5) 26 -- -- 9,361
Dividend and interest receivables 14,954 25,978 10,462 114,694
Prepaid expenses 4,420 17,749 36,600 18,418
----------- ------------- ------------- -------------
Total Assets 9,498,885 109,867,201 168,554,018 35,137,594
LIABILITIES:
Payable for investment securities purchased 81,131 1,413,251 -- 969,119
Payable for fund shares redeemed -- 147,254 91,978 34,401
Management fee payable (Note 3) 2,562 20,711 78,825 15,979
Payable for open foreign currency contracts
(Note 5) 22,241 10,219 -- 3,008
Distribution fee payable (Note 3) 1,114 30,969 40,842 3,879
Dividend payable -- -- -- --
Payable to bank -- 46,832 -- --
Other accrued expenses 30,736 152,432 211,355 46,371
----------- ------------- ------------- -------------
Total Liabilities 137,784 1,821,668 423,000 1,072,757
NET ASSETS $ 9,361,101 $ 108,045,533 $ 168,131,018 $ 34,064,837
Composition of Net Assets:
Par value of shares of beneficial interest $ 1,100 $ 12,832 $ 5,880 $ 2,933
Capital paid in excess of par value 10,985,311 127,449,088 94,533,006 29,557,259
Accumulated net investment income (loss) 6,608 (262,739) (1,060,181) (124,743)
Accumulated net realized gain (loss) (177,942) (1,001,544) 41,019,929 919,514
Net unrealized appreciation (depreciation)
of investments and foreign currencies (1,453,976) (18,152,104) 33,632,384 3,709,874
NET ASSETS $ 9,361,101 $ 108,045,533 $ 168,131,018 $ 34,064,837
Class A Shares
Net Assets $ 8,836,336 $ 61,982,438 $ 108,760,192 $ 32,008,863
Shares Outstanding 1,037,888 7,357,006 3,793,030 2,754,747
Net Asset Value Per Share
(and redemption price) $ 8.51 $ 8.42 $ 28.67 $ 11.62
Maximum Public Offering Price $ 9.03(1) $ 8.93(1) $ 30.42(1) $ 12.33(1)
Class B Shares
Net Assets $ 288,366 $ 35,136,948 $ 33,552,163 $ 1,028,158
Shares Outstanding 33,898 4,177,929 1,179,441 89,139
Net Asset Value Per Share(3) $ 8.51 $ 8.41 $ 28.45 $ 11.53
Class C Shares
Net Assets $ 192,861 $ 9,573,309 $ 17,970,604 $ 173,489
Shares Outstanding 22,681 1,136,341 631,903 15,127
Net Asset Value Per Share(4) $ 8.50 $ 8.42 $ 28.44 $ 11.47
Class I Shares
Net Assets -- -- -- --
Shares Outstanding -- -- -- --
Net Asset Value Per Share
(and redemption price) -- -- -- --
Class X Shares
Net Assets $ 43,538 $ 1,352,838 $ 7,848,059 $ 854,327
Shares Outstanding 5,121 160,572 276,067 73,970
Net Asset Value Per Share(3) $ 8.50 $ 8.43 $ 28.43 $ 11.55
</TABLE>
<TABLE>
<CAPTION>
ING
ING GLOBAL ING
INTERNATIONAL BRAND INTERNATIONAL
EQUITY NAMES BOND
FUND FUND FUND
---- ---- ----
<S> <C> <C> <C>
ASSETS:
Investments in securities, at cost $ 48,169,582 $ 53,753,184 $ 22,285,177
------------- ------------- -------------
Investments in securities, at value $ 51,713,798 $ 62,072,735 $ 19,533,152
Repurchase agreements, at value 4,652,000 1,238,000 123,000
Cash 2,597 2,658 6,408
Foreign currency, at value 26,458 -- 2,737,225
Receivable for investment securities sold 1,243,099 302,926 --
Receivable for fund shares sold 111,583 35,731 --
Receivable for open foreign currency contracts
(Note 5) -- -- 19,462
Dividend and interest receivables 154,981 66,802 477,941
Prepaid expenses 28,992 28,763 25,239
------------- ------------- -------------
Total Assets 57,933,508 63,747,615 22,922,427
LIABILITIES:
Payable for investment securities purchased 1,489,463 446,719 --
Payable for fund shares redeemed 17,032 834 --
Management fee payable (Note 3) 28,699 25,355 9,608
Payable for open foreign currency contracts
(Note 5) 14,635 5,676 111,749
Distribution fee payable (Note 3) 6,752 15,419 2,519
Dividend payable -- -- 56,412
Payable to bank -- -- --
Other accrued expenses 68,478 87,013 38,976
------------- ------------- -------------
Total Liabilities 1,625,059 581,016 219,264
NET ASSETS $ 56,308,449 $ 63,166,599 $ 22,703,163
Composition of Net Assets:
Par value of shares of beneficial interest $ 4,496 $ 4,950 $ 2,824
Capital paid in excess of par value 50,561,342 53,060,690 27,074,775
Accumulated net investment income (loss) (231,148) (255,967) (139,472)
Accumulated net realized gain (loss) 2,456,282 2,035,785 (1,345,475)
Net unrealized appreciation (depreciation)
of investments and foreign currencies 3,517,477 8,321,141 (2,889,489)
NET ASSETS $ 56,308,449 $ 63,166,599 $ 22,703,163
Class A Shares
Net Assets $ 51,928,430 $ 42,614,438 $ 21,630,481
Shares Outstanding 4,142,800 3,330,082 2,691,024
Net Asset Value Per Share
(and redemption price) $ 12.53 $ 12.80 $ 8.04
Maximum Public Offering Price $ 13.29(1) $ 13.58(1) $ 8.44(2)
Class B Shares
Net Assets $ 1,863,178 $ 5,133,378 $ 458,406
Shares Outstanding 150,184 404,733 57,059
Net Asset Value Per Share(3) $ 12.41 $ 12.68 $ 8.03
Class C Shares
Net Assets $ 1,754,706 $ 12,755,630 $ 42,579
Shares Outstanding 141,727 1,005,307 5,293
Net Asset Value Per Share(4) $ 12.38 $ 12.69 $ 8.05
Class I Shares
Net Assets $ 144,253 -- $ 87
Shares Outstanding 11,533 -- 11
Net Asset Value Per Share
(and redemption price) $ 12.51 -- $ 8.04
Class X Shares
Net Assets $ 617,882 $ 2,663,153 $ 571,610
Shares Outstanding 49,692 209,884 71,107
Net Asset Value Per Share(3) $ 12.43 $ 12.69 $ 8.04
</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.
26 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 29
FOR THE PERIOD ENDED APRIL 30, 2000 (UNAUDITED)
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
ING ING
EMERGING ING GLOBAL ING ING
MARKETS GLOBAL INFORMATION EUROPEAN INTERNATIONAL
EQUITY COMMUNICATIONS TECHNOLOGY EQUITY EQUITY
FUND(1) FUND(1) FUND FUND FUND
----------- -------------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 19,634 $ 103,744 $ 166,413 $ 9,557 $ 94,677
Dividend 22,737 39,545 25,079 220,276 266,650
Less: foreign withholding tax (707) (2,160) (1,398) (23,190) (28,984)
----------- -------------- ------------ ---------- -------------
Total income 41,664 141,129 190,094 206,643 332,343
EXPENSES:
Management fees (Note 3) 20,355 168,664 853,220 193,178 310,352
Distribution fees (Note 3) 8,360 101,771 390,191 86,420 127,737
Transfer agent fees (Note 3) 5,056 76,873 316,202 54,760 79,174
Shareholder services fees (Note 3) 4,071 42,166 170,595 41,992 61,907
Registration fees 3,583 36,959 41,254 20,742 26,278
Fund accounting fees 8,467 8,334 25,128 28,212 27,105
Custodian fees 10,345 8,610 25,314 34,476 37,726
Professional fees 4,062 9,006 27,594 14,154 15,809
Reports to shareholders 2,539 18,268 17,402 6,746 7,234
Other expenses 1,524 3,524 11,993 6,176 6,564
----------- -------------- ------------ ---------- -------------
Total expenses 68,362 474,175 1,878,893 486,856 699,886
----------- -------------- ------------ ---------- -------------
Expenses waived and reimbursed by
Manager and Distributor (Note 3) (40,318) (174,495) (723,592) (208,782) (298,548)
----------- -------------- ------------ ---------- -------------
Net expenses 28,044 299,680 1,155,301 278,074 401,338
NET INVESTMENT INCOME (LOSS) 13,620 (158,551) (965,207) (71,431) (68,995)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
(NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions (171,483) (1,001,544) 41,163,607 1,029,232 2,623,291
Forward foreign currency contracts (6,459) -- -- -- (108,856)
Foreign currency transactions (7,012) (104,188) (94,832) (53,086) (134,313)
NET REALIZED GAIN (LOSS) (184,954) (1,105,732) 41,068,775 976,146 2,380,122
Net change in unrealized appreciation
(depreciation) from:
Investments (1,431,729) (18,149,228) 14,127,113 1,959,304 324,952
Foreign Currencies (22,247) (2,876) (6,285) 4,177 (26,185)
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) (1,453,976) (18,152,104) 14,120,828 1,963,481 298,767
Net realized and unrealized gain (loss) on
investments and foreign currencies (1,638,930) (19,257,836) 55,189,603 2,939,627 2,678,889
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(1,625,310) $(19,416,387) $54,224,396 $2,868,196 $2,609,894
</TABLE>
<TABLE>
<CAPTION>
ING
GLOBAL ING
BRAND INTERNATIONAL
NAMES BOND
FUND FUND
---------- -------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 32,760 $ 563,767
Dividend 241,127 --
Less: foreign withholding tax (7,673) (7,329)
---------- -----------
Total income 266,214 556,438
EXPENSES:
Management fees (Note 3) 281,128 119,063
Distribution fees (Note 3) 160,431 61,022
Transfer agent fees (Note 3) 112,280 38,862
Shareholder services fees (Note 3) 70,125 29,763
Registration fees 29,129 21,222
Fund accounting fees 25,264 31,372
Custodian fees 21,587 14,618
Professional fees 17,228 12,822
Reports to shareholders 11,899 5,817
Other expenses 8,360 5,370
---------- -------------
Total expenses 737,431 339,931
---------- -------------
Expenses waived and reimbursed by
Manager and Distributor (Note 3) (262,545) (156,427)
---------- -------------
Net expenses 474,886 183,504
NET INVESTMENT INCOME (LOSS) (208,672) 372,934
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
(NOTES 4 AND 5):
Realized gain (loss) from:
Security transactions 2,038,153 (1,022,064)
Forward foreign currency contracts -- --
Foreign currency transactions (47,295) (73,176)
NET REALIZED GAIN (LOSS) 1,990,858 (1,095,240)
Net change in unrealized appreciation
(depreciation) from:
Investments 4,083,385 (867,748)
Foreign Currencies 1,346 (130,759)
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) 4,084,731 (998,507)
Net realized and unrealized gain (loss) on
investments and foreign currencies 6,075,589 (2,093,747)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5,866,917 $(1,720,813)
</TABLE>
1. Commenced operations on March 1, 2000.
See Notes to Financial Statements.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 27
<PAGE> 30
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ING Emerging ING Global
Markets Communications ING Global
Equity Fund Fund Information Technology Fund
----------- ---- ---------------------------
Period Ended Period Ended Six Months Ended
April 30, 2000 April 30, 2000 April 30, 2000 Period Ended
(Unaudited)(1) (Unaudited)(1) (Unaudited) October 31, 1999(2)
-------------- -------------- ----------- -------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $ 13,620 $ (158,551) $ (965,207) $ (469,089)
Net realized gain (loss) on
investments and foreign currencies (184,954) (1,105,732) 41,068,775 3,961,443
Net change in unrealized
appreciation (depreciation) (1,453,976) (18,152,104) 14,120,828 19,511,556
-------------- -------------- ----------- -------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS (1,625,310) (19,416,387) 54,224,396 23,003,910
-------------- -------------- ----------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income(3)
Class A shares -- -- -- --
Class B shares -- -- -- --
Class C shares -- -- -- --
Class I shares -- -- -- --
Class X shares -- -- -- --
-------------- -------------- ----------- -------------------
-- -- -- --
-------------- -------------- ----------- -------------------
Capital gain
Class A shares -- -- (2,823,352) --
Class B shares -- -- (441,867) --
Class C shares -- -- (232,295) --
Class I shares -- -- -- --
Class X shares -- -- (162,258) --
-------------- -------------- ----------- -------------------
-- -- (3,659,772) --
-------------- -------------- ----------- -------------------
TOTAL DISTRIBUTIONS PAID -- -- (3,659,772) --
-------------- -------------- ----------- -------------------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 10,370,803 75,295,697 53,284,892 34,340,200
Class B shares 348,795 42,992,548 26,737,449 4,934,897
Class C shares 224,533 11,473,013 16,431,657 1,826,104
Class I shares -- -- -- --
Class X shares 48,269 1,537,250 4,114,684 2,009,012
-------------- -------------- ----------- -------------------
10,992,400 131,298,508 100,568,682 43,110,213
-------------- -------------- ----------- -------------------
Dividend reinvestments
Class A shares -- -- 2,746,825 --
Class B shares -- -- 368,220 --
Class C shares -- -- 169,897 --
Class I shares -- -- -- --
Class X shares -- -- 118,119 --
-------------- -------------- ----------- -------------------
-- -- 3,403,061 --
-------------- -------------- ----------- -------------------
Cost of shares repurchased
Class A shares (3,083) (2,179,855) (43,216,388) (542,965)
Class B shares (10,456) (1,415,982) (4,621,704) (61,977)
Class C shares -- (247,568) (2,987,107) (27,703)
Class I shares -- -- -- --
Class X shares -- (733) (989,725) (79,046)
-------------- -------------- ----------- -------------------
(13,539) (3,844,138) (51,814,924) (711,691)
-------------- -------------- ----------- -------------------
NET INCREASE IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 10,978,861 127,454,370 52,156,819 42,398,522
INCREASE (DECREASE) IN NET ASSETS 9,353,551 108,037,983 102,721,443 65,402,432
NET ASSETS:
Beginning of period 7,550 7,550 65,409,575 7,143
END OF PERIOD* $ 9,361,101 $108,045,533 $168,131,018 $65,409,575
*Including net undistributed
(overdistributed) investment income of: $ 6,608 $ (262,739) $ (1,060,181) $ (142)
</TABLE>
1. Commenced operations on March 1, 2000.
2. Commenced operations on December 15, 1998.
3. Included return of capital for the ING International Bond Fund for the
period ended October 31, 1999. They were $551,089, $5,936, $99, $51 and
$9,146 for Class A shares, Class B shares, Class C shares, Class I shares
and Class X shares, respectively.
See Notes to Financial Statements.
28 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 31
<TABLE>
<CAPTION>
ING EUROPEAN EQUITY FUND ING INTERNATIONAL EQUITY FUND ING GLOBAL BRAND NAMES FUND
------------------------ ----------------------------- ---------------------------
Six Months Ended Six Months Ended Six Months Ended
April 30, 2000 Period Ended April 30, 2000 Period Ended April 30, 2000 Period Ended
(Unaudited) October 31, 1999(2) (Unaudited) October 31, 1999(2) (Unaudited) October 31, 1999(2)
----------- ------------------- ----------- ------------------- ----------- -------------------
<S> <C> <C> <C> <C> <C>
$ (71,431) $ 116,340 $ (68,995) $ 108,546 $ (208,672) $ (108,428)
976,146 687,271 2,380,122 1,437,077 1,990,858 743,653
----------- ----------- ------------ ----------- ----------- -----------
1,963,481 1,746,393 298,767 3,218,710 4,084,731 4,236,410
----------- ----------- ------------ ----------- ----------- -----------
2,868,196 2,550,004 2,609,894 4,764,333 5,866,917 4,871,635
(137,837) -- (164,802) -- -- --
(2,125) -- (6,442) -- -- --
(268) -- (5,629) -- -- --
-- -- (1,063) -- -- --
(1,176) -- (2,218) -- -- --
----------- ----------- ------------ ----------- ----------- -----------
(141,406) -- (180,154) -- -- --
----------- ----------- ------------ ----------- ----------- -----------
(752,031) -- (1,375,835) -- (483,254) --
(22,715) -- (43,757) -- (40,698) --
(2,187) -- (32,189) -- (104,294) --
-- -- (4,401) -- (2,286) --
(18,770) -- (19,296) -- (31,851) --
----------- ----------- ------------ ----------- ----------- -----------
(795,703) -- (1,475,478) -- (662,383) --
----------- ----------- ------------ ----------- ----------- -----------
(937,109) -- (1,655,632) -- (662,383) --
----------- ----------- ------------ ----------- ----------- -----------
8,552,012 34,004,254 37,092,290 29,823,874 10,601,494 33,423,997
286,047 826,835 1,295,413 687,875 2,526,938 2,772,072
136,653 56,964 1,412,864 402,152 4,530,225 7,249,758
-- -- 62,429 85,270 14,513 456,052
143,449 681,711 362,868 325,080 501,905 2,238,091
----------- ----------- ------------ ----------- ----------- -----------
9,118,161 35,569,764 40,225,864 31,324,251 18,175,075 46,139,970
----------- ----------- ------------ ----------- ----------- -----------
879,034 -- 1,521,278 -- 471,229 --
21,091 -- 49,741 -- 37,510 --
2,136 -- 37,173 -- 102,182 --
-- -- 5,464 -- 2,281 --
19,946 -- 21,514 -- 31,488 --
----------- ----------- ------------ ----------- ----------- -----------
922,207 -- 1,635,170 -- 644,690 --
----------- ----------- ------------ ----------- ----------- -----------
(8,012,060) (7,742,471) (19,796,327) (2,405,072) (7,658,629) (2,263,633)
(175,535) (11,090) (144,490) (48,745) (589,340) (39,010)
(27,817) -- (61,477) -- (204,020) (131,596)
-- -- (16,462) -- (519,490) (4,595)
(54,714) (9,842) (127,874) (2,127) (428,790) (37,345)
----------- ----------- ------------ ----------- ----------- -----------
(8,270,126) (7,763,403) (20,146,630) (2,455,944) (9,400,269) (2,476,179)
----------- ----------- ------------ ----------- ----------- -----------
1,770,242 27,806,361 21,714,404 28,868,307 9,419,496 43,663,791
3,701,329 30,356,365 22,668,666 33,632,640 14,624,030 48,535,426
30,363,508 7,143 33,639,783 7,143 48,542,569 7,143
$34,064,837 $30,363,508 $ 56,308,449 $ 33,639,783 $63,166,599 $48,542,569
$ (124,743) $ 141,180 $ (231,148) $ 152,314 $ (255,967) $ --
</TABLE>
<TABLE>
<CAPTION>
ING INTERNATIONAL BOND FUND
---------------------------
Six Months Ended
April 30, 2000 Period Ended
(Unaudited) October 31, 1999(2)
----------- -------------------
<S> <C>
$ 372,934 $ 562,584
(1,095,240) (1,371,116)
(998,507) (1,890,982)
----------- -----------
(1,720,813) (2,699,514)
----------- -----------
(356,515) (551,445)
(6,253) (5,940)
(352) (99)
(33) (51)
(8,305) (9,152)
----------- -----------
(371,458) (566,687)
----------- -----------
-- --
-- --
-- --
-- --
----------- -----------
-- --
----------- -----------
(371,458) (566,687)
----------- -----------
148,867 26,645,837
116,447 545,209
41,861 15,073
(3,060) 5,813
32,201 794,628
----------- -----------
336,316 28,006,560
----------- -----------
300,816 550,002
6,238 4,861
403 94
18 50
7,039 9,128
----------- -----------
314,514 564,135
----------- -----------
(462,118) (379,828)
(139,953) (1,867)
(11,128) (2,758)
(2,010) (402)
(146,363) (20,606)
----------- -----------
(761,572) (405,461)
----------- -----------
(110,742) 28,165,234
(2,203,013) 24,899,033
24,906,176 7,143
$22,703,163 $24,906,176
$ (139,472) $ (67,772)
</TABLE>
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 29
<PAGE> 32
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ING Emerging Markets Equity Fund, ING Global Communications Fund, ING
Global Information Technology Fund, ING European Equity Fund, ING
International Equity Fund, ING Global Brand Names Fund and ING
International 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 twenty other investment portfolios: the ING U.S. Treasury Money
Market Fund, ING Money Market Fund, ING National Tax-Exempt Money Market
Fund, ING Intermediate Bond Fund, ING High Yield Bond Fund, ING Mortgage
Income Fund, ING National Tax-Exempt Bond Fund, ING Stable Value Fund, ING
Large Cap Growth Fund, ING Growth & Income Fund, ING Mid Cap Growth Fund,
ING Small Cap Growth Fund, ING Tax Efficient Equity Fund, ING Tax Efficient
Equity Value Fund, ING Focus Fund, ING Internet Fund, ING Internet Fund II,
ING Balanced 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 offer five classes of shares, which have been designated as Class A,
B, C, I and X 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.
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.
30 ING Global / International Mutual Funds Semi-Annual Report / April 30, 2000
<PAGE> 33
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds 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 exchange contracts with
respect to the potential inability of counterparties to meet the terms of
their contracts. A forward foreign currency exchange contract may also limit
any potential gain which might result should the value of such currency
increase.
U.S. FEDERAL TAX STATUS Each Fund intends to distribute substantially all of
its taxable income and to comply with the other requirements of the Internal
Revenue Code of 1986, as amended, applicable to regulated investment
companies.
Accordingly, no provision for U.S. federal income taxes is required. In
addition, by distributing during each calendar year substantially all of its
ordinary income and capital gains, if any, each Fund intends not to be
subject to U.S. federal excise tax.
FOREIGN WITHHOLDING TAXES Income received from sources outside of the United
States may be subject to withholding and other taxes imposed by countries
other than the United States.
DIVIDENDS AND DISTRIBUTIONS The ING International Bond Fund declares daily
dividends from net investment income. Dividends are paid monthly, generally
on the last business day of each month. ING Global Information Technology
Fund, ING European Equity Fund, ING International Equity Fund, ING Global
Brand Names Fund, ING Global Communications Fund and ING Emerging Markets
Equity 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.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 31
<PAGE> 34
April 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
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 Emerging Markets Equity Fund Baring Asset Management, Inc., 1.25% 0.625%
Baring Asset Management (Asia) Ltd.,
Baring International Investment Ltd.
------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund ING Investment Management Advisors B.V. 1.00 0.500
------------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund ING Investment Management Advisors B.V. 1.25 0.625
------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund ING Investment Management Advisors B.V. 1.15 0.575
------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund Baring Asset Management, Inc., 1.25 0.625
Baring Asset Management (Asia) Ltd.,
Baring International Investment Ltd.
------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund ING Investment Management Advisors B.V. 1.00 0.500
------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund Baring Asset Management, Inc., 1.00 0.500
Baring Asset Management (Asia) Ltd.,
Baring International Investment Ltd.
</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 Emerging Markets Equity Fund $ 20,355 $ 15,266 $ 10,178 $ 7,633
----------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 168,664 126,498 84,332 63,249
----------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 853,220 494,924 426,610 247,462
----------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 193,178 116,679 96,589 58,340
----------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 310,352 182,690 155,176 91,345
----------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 281,128 168,608 140,564 84,304
----------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 119,063 72,597 59,532 36,299
</TABLE>
In addition, for the period ended April 30, 2000, the Manager has agreed to
reimburse expenses amounting to $18,072 for ING Emerging Markets Equity Fund,
$20,417 for ING European Equity Fund, $10,703 for ING International Equity Fund
and $20,745 for ING International 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.
32 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 35
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 Emerging Markets Equity Fund $ 8,360 $ 6,165 $ 4,071
--------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 101,771 39,563 42,166
--------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 390,191 194,549 170,595
--------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 86,420 63,289 41,992
--------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 127,737 92,775 61,907
--------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 160,431 79,912 70,125
--------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 61,022 45,227 29,763
--------------------------------------------------------------------------------------------------------------------------
</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 Emerging Markets Equity Fund $ 14,694 $ 491 $ -- $ --
----------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 2,181,062 51,673 1,895 34
----------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 1,320,007 79,744 16,746 6,086
----------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 14,534 1,815 -- 80
----------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 110,650 4,338 567 --
----------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 59,723 13,442 238 2,521
----------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 80 491 -- --
</TABLE>
OTHER TRANSACTIONS WITH AFFILIATES ING Fund Services Co. LLC ("ING Fund
Services") has entered into a Fund Services Agreement with the Funds
pursuant to which ING Fund Services will perform or engage third parties to
perform transfer agency, fund accounting, account services and other
services. Under the Fund Services Agreement, each Fund may pay ING Fund
Services up to $40,000 for fund accounting services plus out of pocket
expenses, $17 per account for transfer agent services plus out of pocket
expenses and up to 0.25% of each Fund's average daily net assets annually
for account servicing activities.
All officers and one trustee of the Trust are employees of the Manager.
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 Emerging Markets Equity Fund $ 11,747,432 $ 965,385 $ 202,379 $ 1,634,108 $ (1,431,729)
------------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 134,009,351 10,241,192 2,175,585 20,324,813 (18,149,228)
------------------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 112,851,928 66,999,924 40,817,968 7,176,658 33,641,310
------------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 12,556,840 11,968,228 5,920,265 2,213,626 3,706,639
------------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 42,805,551 26,646,706 6,479,863 2,935,647 3,544,216
------------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 17,086,395 9,683,626 12,394,031 4,074,480 8,319,551
------------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 9,463,768 12,641,333 21,545 2,773,570 (2,752,025)
</TABLE>
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 33
<PAGE> 36
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
(continued)
5. FORWARD FOREIGN CURRENCY CONTRACTS
At April 30, 2000, the ING Emerging Markets Equity Fund, ING Global
Communications Fund, ING European Equity Fund, ING International Equity
Fund, ING Global Brand Names Fund and ING International Bond Fund had open
forward foreign currency contracts as described below. The Fund bears the
market risk that arises from changes in foreign currency exchange rates. The
unrealized gain (loss) on the contracts reflected in the accompanying
financial statements were as follows:
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING EMERGING MARKETS EQUITY FUND Currency Cost Value Date Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
EURO 442,990 $425,000 $402,785 5/2/00 $(22,215)
Hong Kong Dollar 102,683 13,183 13,183 5/2/00 --
South African Rand 22,352 3,323 3,297 5/2/00 (26)
----- ----- --------
$441,506 $419,265 $(22,241)
----------------------------------------------------------------------------------------------------------------------
TO SELL:
South African Rand 40,249 $ 5,962 $ 5,936 5/2/00 $ 26
----------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on
forward foreign currency contracts $ 26
--------
Gross unrealized depreciation on
forward foreign currency contracts $(22,241)
--------
</TABLE>
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING GLOBAL COMMUNICATIONS FUND Currency Cost Value Date Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
EURO 142,885 $132,097 $129,897 5/2/00 $ (2,200)
EURO 177,073 167,317 160,977 5/31/00 (6,340)
Swedish Kroner 1,334,682 150,556 148,877 5/2/00 (1,679)
-------- -------- --------
$449,970 $439,751 $(10,219)
-------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation on
forward foreign currency contracts $(10,219)
--------
</TABLE>
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING EUROPEAN EQUITY FUND Currency Cost Value Date Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
British Pound 2,843 $004,498 $004,426 5/2/00 $ (72)
British Pound 127,105 200,826 197,890 5/3/00 (2,936)
EURO 557,566 505,155 506,883 5/2/00 1,728
------- ------- ------
$710,479 $709,199 $(1,280)
----------------------------------------------------------------------------------------------------------------------
TO SELL:
British Pound 323,430 $511,181 $503,548 5/4/00 $ 7,633
----------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on
forward foreign currency contracts $ 9,361
-------
Gross unrealized depreciation on
forward foreign currency contracts $(3,008)
-------
</TABLE>
34 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 37
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING INTERNATIONAL EQUITY FUND Currency Cost Value Date Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
British Pound 496,223 $784,281 $772,570 5/8/00 $(11,711)
TO SELL:
EURO 814,590 $738,018 $740,544 5/4/00 $ (2,526)
South African Rand 533,587 78,296 78,694 5/2/00 (398)
-------- ------- ---------
$816,314 $819,238 $ (2,924)
-----------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation on
forward foreign currency contracts $ (14,635)
---------
</TABLE>
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING GLOBAL BRAND NAMES FUND Currency Cost Value Date Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
EURO 129,679 $122,534 $117,891 5/31/00 $(4,643)
----------------------------------------------------------------------------------------------------------------------
TO SELL:
EURO 333,215 $301,893 $302,926 5/2/00 $(1,033)
----------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation
on forward foreign currency contracts $(5,676)
-------
</TABLE>
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING INTERNATIONAL BOND FUND Currency Cost Value Date Gain (Loss)
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
EURO 1,265,000 $1,262,660 $1,150,911 5/10/00 $(111,749)
------------------------------------------------------------------------------------------------------------------------
TO SELL:
British Pound 460,000 $ 736,000 $ 716,538 6/26/00 $ 19,462
------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on
forward foreign currency contracts $ 19,462
---------
Gross unrealized depreciation on
forward foreign currency contracts $(111,749)
---------
</TABLE>
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 35
<PAGE> 38
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
(continued)
6. CONCENTRATION OF RISKS
FOREIGN SECURITIES The Funds 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.
EMERGING MARKETS The ING Emerging Markets Equity Fund invests in securities
of companies that are located in emerging market countries. Because of less
developed markets and economies and, in some countries, less matured
governments and governmental institutions, the risks of investing in foreign
securities can be intensified in the case of investments in issuers
domiciled or doing substantial business in emerging market countries.
NON-DIVERSIFIED The ING International Bond Fund and ING Global Brand Names
Fund are classified as non-diversified investment companies under the
Investment Company Act, which means that each Fund is not limited in the
proportion of its assets in a single issuer. The investment of a large
percentage of a Fund's assets in the securities of a small number of issuers
may cause that Fund's share price to fluctuate more than that of a
diversified investment company.
INDUSTRY CONCENTRATION The ING Global Information Technology Fund and ING
Global Communications Fund concentrate their assets in securities related to
a particular industry. As a result, the Fund may be subject to greater
market fluctuation than a fund which has securities representing a broader
range of investment alternatives.
7. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with U.S. banks or
broker/dealers. A repurchase agreement is a transaction in which the seller
of a security commits itself at the time of the sale to repurchase that
security from the buyer at a mutually agreed upon time and price. The Funds
will always receive and maintain securities as collateral whose market
value, including accrued interest, will equal or exceed the repurchase
price.
8. FEDERAL INCOME TAX
At October 31, 1999, the ING International Bond Fund had, for Federal income
tax purposes, $247,357 of capital loss carryforwards available to offset
future realized gains. The date of expiration for these carryforwards is
October 31, 2007.
9. 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 Emerging Markets Equity Fund $10,367,720 $ 340,839 $ 227,033 -- $ 50,819
----------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 73,115,842 41,579,066 11,227,945 -- 1,539,067
----------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 46,616,330 27,346,390 15,412,138 -- 5,164,028
----------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 27,659,606 949,801 170,323 -- 780,462
----------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 46,210,852 1,844,133 1,793,710 $136,708 580,435
----------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 34,540,879 4,703,783 11,522,671 -- 2,298,307
----------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 25,847,836 523,342 45,781 411 660,229
</TABLE>
36 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 39
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Period Ended April 30, 2000
---------------------------
ING EMERGING MARKETS EQUITY FUND Shares Amount
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Class A Shares(1)
Shares sold 1,038,248 $10,370,803
Shares issued on reinvestment -- --
Shares redeemed (360) (3,083)
---------- -----------
Net increase 1,037,888 $10,367,720
-----------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 34,918 $ 348,795
Shares issued on reinvestment -- --
Shares redeemed (1,270) (10,456)
---------- -----------
Net increase 33,648 $ 338,339
-----------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 22,431 $ 224,533
Shares issued on reinvestment -- --
Shares redeemed -- --
---------- -----------
Net increase 22,431 $ 224,533
-----------------------------------------------------------------------------------------------------------------------
Class X Shares(1)
Shares sold 4,871 $ 48,269
Shares issued on reinvestment -- --
Shares redeemed -- --
---------- -----------
Net increase 4,871 $ 48,269
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on March 1, 2000.
<TABLE>
<CAPTION>
Period Ended April 30, 2000
---------------------------
ING GLOBAL COMMUNICATIONS FUND Shares Amount
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Class A Shares(1)
Shares sold 7,601,770 $75,295,697
Shares issued on reinvestment -- --
Shares redeemed (244,764) (2,179,855)
---------- -----------
Net increase 7,357,006 $73,115,842
-----------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 4,337,544 $42,992,548
Shares issued on reinvestment -- --
Shares redeemed (159,865) (1,415,982)
---------- -----------
Net increase 4,177,679 $41,576,566
-----------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 1,160,476 $11,473,013
Shares issued on reinvestment -- --
Shares redeemed (24,385) (247,568)
---------- -----------
Net increase 1,136,091 $11,225,445
-----------------------------------------------------------------------------------------------------------------------
Class X Shares(1)
Shares sold 160,397 $ 1,537,250
Shares issued on reinvestment -- --
Shares redeemed (75) (733)
---------- -----------
Net increase 160,322 $ 1,536,517
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on March 1, 2000.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 37
<PAGE> 40
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
(continued)
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING GLOBAL INFORMATION TECHNOLOGY FUND Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 1,927,729 $ 53,284,892 3,191,651 $ 34,340,200
Shares issued on reinvestment 115,793 2,746,825 -- --
Shares redeemed (1,403,985) (43,216,388) (38,396) (542,965)
---------- ----------- ------- --------
Net increase 639,537 $ 12,815,329 3,153,255 $ 33,797,235
-------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 983,856 $ 26,737,449 349,185 $ 4,934,897
Shares issued on reinvestment 15,625 368,220 -- --
Shares redeemed (165,094) (4,621,704) (4,369) (61,977)
-------- ---------- ------ -------
Net increase 834,387 $ 22,483,965 344,816 $ 4,872,920
---------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 614,752 $ 16,431,657 123,393 $ 1,826,104
Shares issued on reinvestment 7,211 169,897 -- --
Shares redeemed (111,683) (2,987,107) (2,008) (27,703)
-------- ---------- ------ -------
Net increase 510,280 $ 13,614,447 121,385 $ 1,798,401
---------------------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 159,289 $ 4,114,684 153,449 $ 2,009,012
Shares issued on reinvestment 5,012 118,119 -- --
Shares redeemed (35,477) (989,725) (6,206) (79,046)
------- -------- ------ -------
Net increase 128,824 $ 3,243,078 147,243 $ 1,929,966
---------------------------------------------------------------------------------------------------------------
</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>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING EUROPEAN EQUITY FUND Shares Amount Shares Amount
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 728,664 $ 8,552,012 3,358,479 $ 34,004,254
Shares issued on reinvestment 76,303 879,034 -- --
Shares redeemed (674,863) (8,012,060) (734,074) (7,742,471)
-------- ---------- -------- ----------
Net increase 130,104 $ 1,418,986 2,624,405 $ 26,261,783
-----------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 24,256 $ 286,047 78,820 $ 826,835
Shares issued on reinvestment 1,839 21,091 -- --
Shares redeemed (14,963) (175,535) (1,051) (11,090)
------- -------- ------ -------
Net increase 11,132 $ 131,603 77,769 $ 34,815,745
-----------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 11,660 $ 136,653 5,439 $ 56,964
Shares issued on reinvestment 213 2,136 -- --
Shares redeemed (2,423) (27,817) -- --
------ ------- ----- -----------
Net increase 9,450 $ 110,972 5,439 $ 56,964
-----------------------------------------------------------------------------------------------------
Class X Shares(2)
Shares sold 12,098 $ 143,449 65,838 $ 681,711
Shares issued on reinvestment 1,739 19,946 -- --
Shares redeemed (4,781) (54,714) (924) (9,842)
------ ------- ---- ------
Net increase 9,056 $ 108,681 64,914 $ 671,869
-----------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class X shares commenced offering on January 15, 1999.
38 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 41
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING INTERNATIONAL EQUITY FUND Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 2,793,864 $ 37,092,290 2,924,161 $ 29,823,874
Shares issued on reinvestment 120,069 1,521,278 -- --
Shares redeemed (1,486,688) (19,796,327) (208,844) (2,405,072)
---------- ----------- -------- ----------
Net increase 1,427,245 $ 18,817,241 2,715,317 $ 27,418,802
------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 99,044 $ 1,295,413 61,956 $ 687,875
Shares issued on reinvestment 3,954 49,741 -- --
Shares redeemed (10,689) (144,490) (4,319) (48,745)
------- -------- ------ -------
Net increase 92,309 $ 1,200,664 57,637 $ 639,130
------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 107,974 $ 1,412,864 35,273 $ 402,152
Shares issued on reinvestment 2,964 37,173 -- --
Shares redeemed (4,722) (61,477) -- --
------ ------- ------ -------
Net increase 106,216 $ 1,388,560 35,273 $ 402,152
------------------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold 4,823 $ 62,429 7,500 $ 85,270
Shares issued on reinvestment 433 5,464 -- --
Shares redeemed (1,223) (16,462) -- --
------ ------- ----- ------
Net increase 4,033 $ 51,431 7,500 $ 85,270
------------------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 28,065 $ 362,868 29,719 $ 325,080
Shares issued on reinvestment 1,709 21,514 -- --
Shares redeemed (9,616) (127,874) (185) (2,127)
------ -------- ---- ------
Net increase 20,158 $ 256,508 29,534 $ 322,953
------------------------------------------------------------------------------------------------------------
</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 February 16, 1999.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 39
<PAGE> 42
APRIL 30, 2000 (UNAUDITED)
Notes to Financial Statements
(continued)
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING GLOBAL BRAND NAMES FUND Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 840,321 $ 10,601,494 3,258,101 $ 33,423,997
Shares issued on reinvestment 39,106 471,229 -- --
Shares redeemed (607,307) (7,658,629) (200,377) (2,263,633)
-------- ---------- -------- ----------
Net increase 272,120 $ 3,414,094 3,057,724 $ 31,160,364
-----------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 202,331 $ 2,526,938 250,238 $ 2,772,072
Shares issued on reinvestment 3,134 37,510 -- --
Shares redeemed (47,683) (589,340) (3,525) (39,010)
------- -------- ------ -------
Net increase 157,782 $ 1,975,108 246,713 $ 2,733,062
-----------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 357,579 $ 4,530,225 667,391 $ 7,249,758
Shares issued on reinvestment 8,530 102,182 -- --
Shares redeemed (16,521) (204,020) (11,910) (131,596)
------- -------- ------- --------
Net increase 349,588 $ 4,428,387 655,481 $ 7,118,162
-----------------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold 1,256 $ 14,513 40,252 $ 456,052
Shares issued on reinvestment 189 2,281 -- --
Shares redeemed (41,283) (519,490) (414) (4,595)
------- -------- ---- ------
Net increase (decrease) (39,838) $ (502,696) 39,838 $ 451,457
-----------------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 40,349 $ 501,905 204,477 $ 2,238,091
Shares issued on reinvestment 2,630 31,488 -- --
Shares redeemed (34,246) (428,790) (3,326) (37,345)
------- -------- ------ -------
Net increase 8,733 $ 104,603 201,151 $ 2,200,746
-----------------------------------------------------------------------------------------------------------
</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 14, 1999.
40 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 43
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING INTERNATIONAL BOND FUND Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 17,564 $ 148,867 2,674,034 $26,645,837
Shares issued on reinvestment 35,908 300,816 60,379 550,002
Shares redeemed (54,956) (462,118) (42,143) (379,828)
------- -------- ------- --------
Net increase (decrease) (1,484) $ (12,435) 2,692,270 $26,816,011
-----------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 13,740 $ 116,447 58,708 $ 545,209
Shares issued on reinvestment 557 6,238 546 4,861
Shares redeemed (16,523) (139,953) (207) (1,867)
------- -------- ---- ------
Net increase (decrease) (2,226) $ (17,268) 59,047 $ 548,203
-----------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 4,980 $ 41,861 1,687 $ 15,073
Shares issued on reinvestment 29 403 11 94
Shares redeemed (1,337) (11,128) (315) (2,758)
------ ------- ---- ------
Net increase 3,672 $ 31,136 1,383 $ 12,409
-----------------------------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold (363) $ (3,060) 648 $ 5,813
Shares issued on reinvestment 2 18 7 50
Shares redeemed (237) (2,010) (46) (402)
---- ------ --- ----
Net increase (decrease) (598) $ (5,052) 609 $ 5,461
-----------------------------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 3,794 $ 32,201 85,168 $ 794,628
Shares issued on reinvestment 840 7,039 1,023 9,128
Shares redeemed (17,435) (146,363) (2,283) (20,606)
------- -------- ------ -------
Net increase (decrease) (12,801) $(107,123) 83,908 $ 783,150
-----------------------------------------------------------------------------------------------------------------------
</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 11, 1999.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 41
<PAGE> 44
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
Baring International Investment Limited
155 Bishopgate
London, England EC2M 3XY
Baring Asset Management (Asia) Limited
19/F Edinburgh Tower, The Landmark,
15 Queens Road, Central, Hong Kong
ING Investment Management Advisors B.V.
Schenkkade 65, 2595 AS
The Hague, The Netherlands
42 ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000
<PAGE> 45
ING FUNDS SERVICES
www.ingfunds.com -- Your 24-Hour Information Source
[Web Page Graphic]
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.
[Web Page Graphic]
REVIEW YOUR ING FUNDS ACCOUNTS To receive an update on your ING Funds accounts
simply click on "Shareholders & Investors" on the top of the homepage, and then
on "My Accounts." This is a secure section of the site, and you'll be asked to
provide your Social Security number and a password/PIN to enter. To create a
password, call ING Funds at 1-877-INFO-ING (1-877-463-6464). Once the phone
representative establishes the password, click on "View Account" to access your
ING Funds portfolio information. Here you'll find a host of information, such as
your latest account balance and a complete history of your account. You can even
order duplicate statements and tax documents to be sent to your address of
record.
[Web Page Graphic]
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.
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.
ING Global/International Mutual Funds Semi-Annual Report/April 30, 2000 43
<PAGE> 46
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>
GLOBAL/INTERNATIONAL FUNDS
<TABLE>
<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>
BOND FUNDS
<TABLE>
<S> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
ING High Yield Bond Fund High current income and total return Below-investment grade corporate bonds
-----------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund High current income U.S. government and high-quality corporate bonds
-----------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund High current tax-exempt income Diversified portfolio of municipal bonds
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
MONEY MARKET FUNDS
<TABLE>
<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> 47
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.
RS.0002.06/00
[ING FUNDS LOGO]
1475 Dunwoody Drive
West Chester, PA 19380-1478
