<PAGE> 1
AMERICAS ING FUNDS
ING MONEY MARKET FUND
SEMI-ANNUAL REPORT / APRIL 30, 2000
[MONEY MARKET LOGO]
[ING FUNDS LOGO]
<PAGE> 2
TABLE OF CONTENTS
FUND INFORMATION AT YOUR FINGERTIPS
WE ARE PLEASED TO PROVIDE THIS DETAILED REVIEW OF THE ING MONEY MARKET FUND 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.
PAGE 3 FUND SUMMARY
A summary of the Fund's performance record and portfolio composition, and an
interview with the Fund's portfolio manager.
PAGES 4 - 5 SCHEDULE OF INVESTMENTS
A complete listing of the securities in the Fund's 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.
PAGE 7 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 8 STATEMENT OF ASSETS & LIABILITIES
A complete "balance sheet" as of the end of the reporting period. It includes
the Fund's NAV, which is calculated by dividing its net assets (assets minus
liabilities) by its number of shares outstanding.
PAGE 8 STATEMENT 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 9 STATEMENTS OF CHANGES IN NET ASSETS
A reporting of the increase or decrease in a Fund's net assets during the
reporting period. Changes in net assets could occur for a variety of reasons,
including investment operations, dividend distributions and capital share
transactions.
PAGES 11 - 13 NOTES TO FINANCIAL STATEMENTS
A description of the significant accounting policies of the Fund, and more
detailed information about the schedules and tables that appear in the report.
PAGE 15 ING FUNDS SERVICES
A description of convenient services available to Fund shareholders.
PAGE 16 FUND FAMILY OVERVIEW
A brief summary of the ING Funds, including objectives and primary portfolios.
SHARES OF THE FUND 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 15 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
2 ING Money Market Fund Semi-Annual Report / April 30, 2000
<PAGE> 4
Data as of 4/30/00
ING MONEY MARKET FUND
FOR INVESTORS SEEKING PRESERVATION OF CAPITAL AND LIQUIDITY
ASSET ALLOCATION(1)
<TABLE>
<S> <C>
1st Tier Commercial Paper 62.6%
Floating Rate Note 9.2
Euro CD 9.2
Short & Medium-Term Note 7.0
Yankee CD 6.2
Repurchase Agreement 4.6
Asset-Backed 0.8
U.S. Government Agency 0.4
</TABLE>
PERFORMANCE HIGHLIGHTS
<TABLE>
<CAPTION>
iMoneyNet, Inc.
1st Tier
Retail Index(4)
7-Day Yield 30-Day Yield (30-Day) Average
<S> <C> <C> <C>
A Shares 5.47% 5.45% 5.36%
B Shares 4.83 4.81 --
C Shares 4.83 4.80 --
I Shares(2) 5.93 5.91 --
X Shares(3) 4.83 4.81 --
</TABLE>
Inception date for Class A, B, and C shares is 12/15/98.
Inception date for Class I shares is 10/13/99.
Inception date for Class X shares is 1/20/99.
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
State St. Repur. Agreement due 5/1/00 4.6%
Societe Generale. NY Yankee CD,
6.1%, due 6/1/00 2.7
ABN AMRO Bank Euro CD
6.1% due 6/13/00 2.4
Windmill Funding Corp. CP due 5/10/00 2.4
Deutsche Bank AG Euro CD
6.1% due 6/28/00 2.2
Caterpillar Financial Services
FRN 6.2% due 5/22/00 1.9
Toronto Dominion Bank, Euro CD
6.2% due 6/30/00 1.9
Household Finance Corp.,
FRN 6.3% due 6/29/00 1.9
UBS AG Stamford Yankee CD
6.9% due 3/27/01 1.9
BellSouth Telephone CP due 5/2/00 1.9
</TABLE>
PAST PERFORMANCE IS HISTORICAL AND IS NO GUARANTEE OF FUTURE RESULTS. SHARES OF
THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORP., OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE
VALUE OF $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets. 2. Class I shares are offered only to a) retirement plans affiliated
with ING Group and, b) ING Group and its affiliates for purposes of corporate
cash management. 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. 3. 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. 4. The iMoneyNet, Inc. 1st Tier
Retail Index tracks the performance, assets, average maturities and portfolio
composition of over 1,300 taxable and tax-free money funds.
MANAGER'S OVERVIEW
[PHOTO OF JENNIFER THOMPSON]
JENNIFER THOMPSON
Portfolio Management
Team Leader
OBJECTIVE
The preservation of capital and liquidity and the maintenance of a stable $1.00
net asset value per share.
"THE FUND CONTINUES TO MEET ITS OBJECTIVE OF PROVIDING HIGH CURRENT INCOME."
SEE PAGE 4 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund continues to meet its objective of providing high current
income. As of April 30, 2000 the Fund had a seven-day yield of 5.47% for its
Class A shares and 4.83% for its Class B, C and X shares. This compares to
the seven-day yield of 5.39% from the Fund's benchmark, the iMoneyNet, Inc.
First Tier Retail Index.
QUESTION: Can you describe the economic conditions over the last six months?
ANSWER: It has been a very interesting time in the money markets. Not only did
the Federal Reserve continue to raise rates during the period, but the
market also successfully made its way through the Y2K issues.
In November, the Federal Reserve Board raised its target Fed Funds rate
by 25 basis points for the third time in 1999. The market then became
preoccupied with Y2K, as fund managers dealt with uncertainty surrounding
fund flows and the supply of short-term paper. Once the century ended
uneventfully, the market turned its focus to the Fed and expectations of
further rate hikes.
As 2000 progressed and the economy continued to show signs of strength,
the Fed began to raise its target Fed Funds rate. After two 25 basis point
moves in both February and March, the Fed Funds rate stood at 6%.
QUESTION: What strategies did you employ in this environment?
ANSWER: For the last two months of 1999, our key objective was to maintain
liquidity in the Fund for year-end. Because rates on securities maturing in
2000 were significantly higher, the Fund purchased 2000 maturities whenever
it could, without sacrificing liquidity in 1999.
When it became clear in early 2000 that rates would continue to rise, the
Fund's average maturity was shortened prior to the Fed's February meeting.
This proved beneficial, as the Fund was able to invest in higher-yielding,
longer-term securities after the tightening, thus out-performing competitors
in February. The same strategy was employed surrounding the March Fed
meeting and helped the Fund to outperform in March and April.
QUESTION: What is your outlook for the Fund?
ANSWER: Most market participants are expecting the Fed to continue raising
interest rates this spring and into the summer. Looking ahead, we expect to
only invest in longer-term money market securities if the appropriate Fed
tightenings are factored in.
[ING FUNDS LOGO] ING Money Market Fund Semi-Annual Report / April 30, 2000 3
<PAGE> 5
APRIL 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING MONEY MARKET FUND
<TABLE>
<CAPTION>
Principal
Amount Ratings(1) Value
--------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES -- 0.4%
$1,000,000 Fannie Mae, Series B, 6.12%
due 5/1/00(2) NR/Aaa $ 999,863
500,000 Federal Home Loan Bank, 5.26%
due 5/26/00 NR/Aaa 499,997
TOTAL U.S. GOVERNMENT AGENCIES
(Cost -- $1,499,860) $ 1,499,860
ASSET-BACKED COMMERCIAL PAPER -- 12.6%
14,000,000 Corporate Asset Funding Co.,
6.22% to 6.30%
due 6/2/00 to 6/6/00(3)(4) A-1+/P-1 $ 13,919,057
4,000,000 Delaware Funding Corp., 6.13%
due 5/9/00(3)(4) A-1+/P-1 3,994,649
11,570,000 Preferred Receivable Funding,
6.16% to 6.17%
due 5/22/00 to 5/30/00(3)(4) A-1/P-1 11,523,101
17,000,000 Windmill Funding Corp.,
6.15% to 6.16%
due 5/1/00 to 5/19/00(3)(4) A-1+/P-1 16,977,350
TOTAL ASSET-BACKED COMMERCIAL PAPER
(Cost -- $46,414,157) $ 46,414,157
COMMERCIAL PAPER(3) -- 50.0%
AUTO CARS/LIGHT TRUCKS -- 1.3%
5,000,000 DaimlerChrysler NA Holding,
6.08% due 5/2/00 A-1/P-1 $ 4,999,179
BEVERAGES - NON-ALCOHOLIC -- 4.8%
18,000,000 Coca Cola Co., 6.18% to 6.25%
due 5/24/00 to 6/5/00(4)(5) A-1/P-1 17,915,009
COMMERCIAL BANKS -- 4.5%
13,000,000 Abbey National North America,
6.13% to 6.75%
due 5/25/00 to 12/22/00 A-1+/P-1 12,686,217
4,000,000 Bank One Australia Ltd., 6.10%
due 5/15/00 A-1/P-1 3,990,776
------------
16,676,993
DIVERSIFIED FINANCIAL SERVICES -- 8.4%
5,000,000 Associates First Capital Corp.,
6.07% due 5/4/00 A-1/P-1 4,997,542
7,000,000 Citigroup Inc., 6.13%
due 5/8/00 A-1+/P-1 6,991,820
5,000,000 General Electric Capital Corp.,
6.20% due 7/3/00 A-1+/P-1 4,947,850
14,000,000 Morgan Stanley Dean Witter,
6.09% to 6.19%
due 5/5/00 to 5/16/00 A-1/P-1 13,977,726
------------
30,914,938
FINANCE - AUTO LOANS -- 4.8%
7,000,000 Ford Motor Credit Co., 6.13%
due 5/22/00 A-1/P-1 6,975,459
11,000,000 General Motor Acceptance Corp.,
6.19% due 5/12/00 to 5/17/00 A-1/P-1 10,975,446
------------
17,950,905
FINANCE - CONSUMER LOANS -- 3.0%
5,000,000 American General Finance Corp.,
6.23% due 5/4/00(4)(5) A-1/P-1 4,997,458
6,000,000 Household Finance Corp., 6.28%
due 7/7/00 A-1/P-1 5,931,883
------------
10,929,341
FINANCE - INVESTMENT BANKERS/BROKERS -- 3.3%
$5,000,000 Goldman Sachs Group Inc.,
6.08% due 5/1/00 A-1+/P-1 5,000,000
7,000,000 Salomon Smith Barney Holdings
Inc., 6.13% due 5/10/00 A-1/P-1 6,989,465
------------
11,989,465
MACHINERY - FARM -- 1.9%
7,000,000 Deere & Co., 6.15% due 5/3/00 A-1/P-1 6,997,651
MEDICAL - DRUGS -- 3.2%
12,000,000 American Home Products,
6.10% to 6.18%
due 5/3/00 to 5/16/00(4) A-1/P-1 11,980,707
MONEY CENTER BANKS -- 3.2%
12,000,000 Credit Suisse First Boston Inc.,
6.23% to 6.25%
due 6/9/00 to 7/7/00(4) A-1+/P-1 11,898,153
MULTI-LINE INSURANCE -- 3.2%
12,000,000 Aegon Funding Corp., 6.05% to
6.62% due 5/2/00 to 12/13/00(4) A-1+/P-1 11,725,409
PHOTO EQUIPMENT & SUPPLIES -- 1.9%
7,000,000 Eastman Kodak Co., 6.26%
due 6/22/00 A-1/P-1 6,938,423
SPECIAL PURPOSE ENTITY -- 2.7%
10,000,000 Deutsche Bank Financial,
6.14% to 6.16%
due 5/11/00 to 6/7/00 A-1+/P-1 9,960,638
TELECOMMUNICATION SERVICES -- 1.9%
7,000,000 BellSouth Telecommunications Inc.,
6.14% due 5/2/00 A-1+/P-1 6,998,828
TELEPHONE - INTEGRATED -- 1.9%
7,000,000 SBC Communications Inc., 6.19%
due 5/23/00(4) A-1+/P-1 6,974,119
TOTAL COMMERCIAL PAPER
(Cost -- $184,849,758) $184,849,758
SHORT-TERM AND MEDIUM-TERM NOTES -- 17.0%
ASSET-BACKED SECURITIES -- 0.7%
339,993 CarMax Auto Owner Trust,
Series 1999-1 Class A1,
6.2025% due 11/15/00 A-1+/P-1 $ 339,993
22,552 Caterpillar Financial Asset Trust,
Series 1999-A, Class A1,
5.365% due 7/25/00 A-1+/P-1 22,552
2,344,708 Heller Equipment Asset Receivables
Trust, Series 1999-2 A1,
6.12905% due 1/6/01 A-1/P-1 2,344,708
------------
2,707,253
AUTO - CARS/LIGHT TRUCKS -- 1.4%
5,000,000 DaimlerChrysler NA Holding, Series C,
5.98% due 5/22/00(2) A-1/P-1 4,997,308
BREWERY -- 0.1%
500,000 Anheuser Busch Cos., 6.03%
due 5/16/00(2)(4) A-1/P-1 499,944
</TABLE>
4 ING Money Market Fund Semi-Annual Report / April 30, 2000
<PAGE> 6
ING Money Market Fund (continued)
<TABLE>
<CAPTION>
Principal
Amount Ratings(1) Value
--------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL BANKS -- 3.5%
$5,000,000 Bank One Corp., 6.07% due 6/9/00 A-1/P-1 $ 5,000,000
Bank One NA Illinois:
5,000,000 6.08% due 6/14/00 A-1/P-1 5,000,000
3,000,000 Series 1999-A, 6.2525%
due 7/20/00(2) A-1/P-1 2,998,731
------------
12,998,731
DIVERSIFIED FINANCIAL SERVICES -- 1.6%
500,000 Chrysler Finance Co. LLC,
Series R, 5.85% due 5/15/00 A-1/NR 500,137
5,000,000 Citigroup Inc., Series A, 6.09625%
due 5/4/00(2) A-1+/P-1 5,000,000
500,000 IBM Credit Corp., 5.898%
due 8/7/00 A-1/P-1 499,845
------------
5,999,982
FINANCE - AUTO LOANS -- 0.6%
Ford Motor Credit Co.:
1,000,000 6.0575% due 5/18/00(2) A-1/P-1 999,759
1,000,000 6.84% due 6/5/00 A-1/P-1 1,000,735
------------
2,000,494
FINANCE - CONSUMER LOANS -- 1.9%
7,000,000 Household Finance Corp., 6.25%
due 6/29/00(2) A-1/P-1 7,000,000
FINANCE - INVESTMENT BANKERS/BROKERS -- 1.6%
Merrill Lynch & Co., Series B:
2,000,000 6.74% due 2/7/01 AA-/Aa3 1,999,853
4,000,000 6.77% due 2/23/01 AA-/Aa3 4,000,000
------------
5,999,853
FINANCE - OTHER SERVICES -- 2.1%
Caterpillar Financial Services Corp.,
Series F:
7,000,000 6.17% due 5/22/00(2) A/A2 7,005,994
800,000 6.75% due 6/1/00 A+/A2 800,470
------------
7,806,464
FOOD - MISCELLANEOUS/DIVERSIFIED -- 1.9%
7,000,000 General Mills Inc., Series F, 6.68%
due 2/9/01 A+/A2 6,997,556
OFFICE AUTOMATION & EQUIPMENT -- 0.1%
200,000 Xerox Corp., Series F, 5.635%
due 7/14/00 A/A3 199,975
TELEPHONE - LONG DISTANCE -- 1.5%
AT&T Corp.:
5,000,000 6.07% due 5/8/00(2)(4) NR/NR 4,999,589
500,000 6.24% due 7/13/00(2)(4) AA-/NR 499,960
------------
5,499,549
TOTAL SHORT-TERM AND MEDIUM-TERM NOTES
(Cost -- $62,707,109) $ 62,707,109
CERTIFICATE OF DEPOSIT -- 15.4%
$9,000,000 ABN Amro Bank NV Euro, 6.07%
due 6/13/00 A-1+/P-1 $ 8,999,292
5,000,000 ABN Amro Bank NV Euro, 5.665%
due 6/15/00 A-1+/P-1 4,994,954
5,000,000 Barclays Bank PLC Euro, 6.18%
due 6/19/00 A-1+/P-1 5,000,067
8,000,000 Deutsche Bank AG Euro, 6.10%
due 6/28/00 A-1+/P-1 7,998,548
6,000,000 Deutsche Bank NY Yankee, 6.09%
due 5/31/00 A-1+/P-1 6,000,148
10,000,000 Societe Generale NY Yankee,
6.12% due 6/1/00 A-1+/P-1 10,000,000
7,000,000 Toronto Dominion Bank Ltd. Euro,
6.21% due 6/30/00 A-1+/P-1 7,000,115
7,000,000 UBS AG Stamford CT Yankee,
6.875% due 3/27/01 A-1+/P-1 6,999,100
TOTAL CERTIFICATE OF DEPOSIT
(Cost -- $56,992,224) $ 56,992,224
REPURCHASE AGREEMENT -- 4.6%
16,989,000 State Street Bank & Trust Co., 5.74%
due 5/1/00; Proceeds at maturity --
$16,997,126; (Fully collateralized by
Federal Home Loan Bank, 6.39% due
2/7/01; Market value -- $17,333,115)
(Cost -- $16,989,000) $ 16,989,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $369,452,108)(6) $369,452,108
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc.
2. Floating rate note, date shown is the next interest reset date. Interest rate
shown is the current rate.
3. Rate shown is yield to maturity on date of purchase in effect at April 30,
2000.
4. 4-2 commercial paper or 144a issue. These securities may be sold to qualified
institutional investors only. Total value of securities amounted to $117,904,505
or 32.1% of net assets.
5. Extendible commercial note. These issues are considered to be illiquid, total
value of securities amounted to $22,912,467 or 6.2% of net assets.
6. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Money Market Fund Semi-Annual Report / April 30, 2000 5
<PAGE> 7
APRIL 30, 2000 (UNAUDITED)
BOND RATINGS
All ratings are by Standard & Poor's Rating Group (Standard & Poor's) and
Moody's Investors Service, Inc. (Moody's). The definitions of the applicable
rating symbol are set forth below:
Standard & Poor's applies indicators "+" and "-" to its rating categories. The
indicators show relative standing within the major rating categories.
AAA - Highest grade debts in which capacity to pay interest and repay
principal is extremely strong.
AA - High-grade debts having a very strong capacity to pay interest and
repay principal.
A - Upper medium grade debts that have a strong capacity to pay interest
and repay principal although they are somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions
than debts in higher rated categories.
BBB - Debts having an adequate capacity to pay interest and repay principal.
Whereas they normally exhibit adequate protection parameters, adverse
economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal for debts
in this category than in higher rated categories.
BB,B, - Debts rated in these categories are predominantly speculative with
CCC, CC respect to capacity to pay interest and repay principal in accordance
with terms of the obligations; BB indicates the highest grade and CC
the lowest within the speculative rating categories.
Moody's applies numerical indicators 1, 2 and 3 to rating categories. The
modifier 1 indicates that the security is in the higher end of its rating
category; the modifier 2 indicates a mid-range ranking; and modifier 3 indicates
a ranking toward the lower end of the category.
Aaa - Debts judged to be the best quality and carry the smallest degree of
investment risk.
Aa - Debts judged to be of high quality by all standards.
A - Debts possess many favorable investment attributes and are to be
considered as "upper medium grade obligations."
Baa - Debts are considered to be medium grade obligations, they are neither
highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over
any great length of time.
Ba - Debts rated in this category are judged to have speculative elements,
their future cannot be considered as well assured.
B - Debts rated in this category generally lack characteristics of the
desirable investment.
Caa - Debts in this category are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to
principal or interest.
SHORT-TERM RATINGS
A-1 - Standard & Poor's highest rating for demand obligations and commercial
paper. It indicates that the degree of safety regarding timely payment
is strong. Those issues determined to possess extremely strong safety
characteristics will be denoted with a plus (+) designation.
A-2 - Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as
for issues designated "A-1."
P-1 - Moody's highest commercial paper rating. Issuers rated Prime-1 ("P-1")
have a superior ability for repayment of senior short-term promissory
obligations.
P-2 - Issuers rated Prime-2 ("P-2") have a strong ability for repayment of
senior short-term promissory obligations.
NR - Indicates that the bond is not rated by Standard & Poor's or Moody's.
6 ING Money Market Fund Semi-Annual Report / April 30, 2000
<PAGE> 8
FINANCIAL HIGHLIGHTS
ING MONEY MARKET FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1)
throughout each period: 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99
<S> <C> <C> <C> <C> <C> <C>
Net asset value per share, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
From investment operations:(5)
Net investment income 0.03 0.04 0.02 0.03 0.02 0.03
Net realized and unrealized gain -- -- -- -- -- --
-------- -------- ------ ------ ----- -----
Total from investment operations 0.03 0.04 0.02 0.03 0.02 0.03
-------- -------- ------ ------ ----- -----
Distributions paid from investment income (0.03) (0.04) (0.02) (0.03) (0.02) (0.03)
-------- -------- ------ ------ ----- -----
Net asset value per share, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
NET ASSETS, END OF PERIOD (in thousands) $346,411 $228,124 $3,789 $1,173 $471 $444
Total investment return at net asset value(6,7) 2.61% 3.98% 2.28% 3.31% 2.28% 3.30%
Ratios to average net assets:(8)
Net expenses 0.75% 0.73% 1.38% 1.41% 1.40% 1.41%
Gross expenses 1.43% 1.67% 1.68% 1.79% 1.69% 1.78%
Net investment income 5.21% 4.59% 4.60% 3.85% 4.52% 3.89%
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class I Shares(2) Class X Shares(3)
throughout each period: 4/30/00(4) 10/31/99 4/30/00(4) 10/31/99
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $1.00 $1.00 $1.00 $1.00
From investment operations:(5)
Net investment income 0.03 0.00(9) 0.02 0.03
Net realized and unrealized gain -- -- -- --
------- ----- ----- ------
Total from investment operations 0.03 0.00(9) 0.02 0.03
------- ----- ----- ------
Distributions paid from investment income (0.03) (0.00)(9) (0.02) (0.03)
------- ----- ----- ------
Net asset value per share, end of period $1.00 $1.00 $1.00 $1.00
NET ASSETS, END OF PERIOD (in thousands) $16,276 $1,906 $283 $1,512
Total investment return at net asset value(6,7) 2.84% 0.28% 2.28% 2.94%
Ratios to average net assets:(8)
Net expenses 0.28% 0.31% 1.40% 1.41%
Gross expenses 0.43% 0.59% 1.70% 1.73%
Net investment income 5.70% 5.29% 4.47% 3.81%
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class I shares commenced offering on October 13, 1999.
3. Class X shares commenced offering on January 20, 1999.
4. Unaudited.
5. Per share calculation is based on average number of shares outstanding during
the period.
6. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
contingent deferred sales charges with respect to Class B, C, and X shares.
Total return for Class X shares does not include the 2.00% bonus shares paid
by the Distributor. If the effect of bonus shares was included, total return
for Class X shares would have been 4.33% for the six months ended 4/30/00 and
5.00% for the period ended 10/31/99. Total returns would be lower if the
Fund's expenses were not waived or reimbursed.
7. Not annualized.
8. Annualized.
9. Amount represents less than $0.01.
ING Money Market Fund Semi-Annual Report / April 30, 2000 7
<PAGE> 9
STATEMENT OF ASSETS & LIABILITIES
April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
ING Money Market Fund
---------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at cost $369,452,108
------------
Investments in securities, at value $369,452,108
Cash 77,146
Receivable for fund shares sold 412,454
Interest receivable 1,241,376
Prepaid expenses 93,441
------------
Total Assets 371,276,525
LIABILITIES:
Payable for investment securities purchased 2,025,336
Dividend payable 1,739,415
Management fee payable (Note 3) 40,055
Distribution fee payable (Note 3) 36,208
Other accrued expenses 205,730
------------
Total Liabilities 4,046,744
NET ASSETS $367,229,781
Composition of Net Assets:
Par value of shares of beneficial interest $ 367,231
Capital paid in excess of par value 366,843,910
Undistributed net investment income 20,014
Accumulated net realized loss (1,374)
NET ASSETS $367,229,781
Class A Shares
Net Assets $346,410,476
Shares Outstanding 346,411,725
Net Asset Value Per Share (and redemption price) $1.00
Maximum Public Offering Price $1.00
Class B Shares
Net Assets $ 3,788,492
Shares Outstanding 3,788,510
Net Asset Value Per Share(1) $1.00
Class C Shares
Net Assets $ 471,013
Shares Outstanding 471,017
Net Asset Value Per Share(2) $1.00
Class I Shares
Net Assets $ 16,276,309
Shares Outstanding 16,276,407
Net Asset Value Per Share (and redemption price) $1.00
Class X Shares
Net Assets $ 283,491
Shares Outstanding 283,496
Net Asset Value Per Share(1) $1.00
</TABLE>
1. 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).
2. 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.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
ING Money Market Fund
---------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest $9,686,323
----------
EXPENSES:
Distribution fees (Note 3) 772,021
Transfer agent fees (Note 3) 439,774
Management fee (Note 3) 406,920
Shareholder services fees (Note 3) 383,505
Registration fees 94,727
Reports to shareholders 39,782
Professional fees 38,455
Fund accounting fee 25,828
Custodian fee 16,667
Other expenses 23,834
----------
Total expenses 2,241,513
----------
Expenses waived by Manager
and Distributor (Note 3) (1,057,925)
----------
Net expenses 1,183,588
NET INVESTMENT INCOME 8,502,735
REALIZED LOSS ON INVESTMENTS:
Realized loss from security transactions (1,374)
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $8,501,361
</TABLE>
See Notes to Financial Statements.
8 ING Money Market Fund Semi-Annual Report / April 30, 2000
<PAGE> 10
STATEMENTS OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
April 30, 2000 Period Ended
ING MONEY MARKET FUND (Unaudited) October 31, 1999(1)
----------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income $ 8,502,735 $ 3,093,838
Net realized loss on investments (1,374) --
------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 8,501,361 3,093,838
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (7,879,541) (3,055,168)
Class B shares (60,375) (7,890)
Class C shares (15,442) (5,583)
Class I shares (531,827) (5,232)
Class X shares (15,550) (19,965)
------------- -------------
(8,502,735) (3,093,838)
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares
Class A shares 454,687,937 325,378,899
Class B shares 10,076,412 1,897,590
Class C shares 1,756,855 675,705
Class I shares 39,600,100 1,901,244
Class X shares 461,672 2,378,957
------------- -------------
506,582,976 332,232,395
Dividend reinvestments
Class A shares 6,139,281 3,010,550
Class B shares 38,122 7,368
Class C shares 11,675 5,450
Class I shares 378,461 5,232
Class X shares 13,081 19,653
------------- -------------
6,580,620 3,048,253
Cost of shares repurchased
Class A shares (342,539,094) (100,268,229)
Class B shares (7,498,609) (734,755)
Class C shares (1,741,837) (239,212)
Class I shares (25,608,630) --
Class X shares (1,703,032) (886,834)
------------- -------------
(379,091,202) (102,129,030)
------------- -------------
NET INCREASE IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 134,072,394 233,151,618
INCREASE IN NET ASSETS 134,071,020 233,151,618
NET ASSETS:
Beginning of period 233,158,761 7,143
END OF PERIOD* $ 367,229,781 $ 233,158,761
* Including net undistributed
investment income of: $ 20,014 $ 20,014
</TABLE>
1. Commenced operations on December 15, 1998
See Notes to Financial Statements.
ING Money Market Fund Semi-Annual Report / April 30, 2000 9
<PAGE> 11
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ING Money Market Fund (the "Fund") is a separate investment portfolio 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 this Fund
and twenty-six other investment portfolios: ING U.S. Treasury Money Market
Fund, ING National Tax-Exempt Money Market Fund, ING Intermediate Bond Fund,
ING High Yield Bond Fund, ING International Bond Fund, ING Mortgage Income
Fund, ING National Tax-Exempt Bond Fund, ING Stable Value Fund, ING Large
Cap Growth Fund, ING Growth & Income Fund, ING Mid Cap Growth Fund, ING
Small Cap Growth Fund, ING Global Brand Names Fund, ING International Equity
Fund, ING European Equity Fund, ING Tax Efficient Equity Fund, ING Tax
Efficient Equity Value Fund, ING Focus Fund, ING Global Information
Technology Fund, ING Global Communications Fund, ING Internet Fund, ING
Internet Fund II, ING Balanced Fund, ING Emerging Markets Equity Fund, ING
Global Real Estate Fund and ING Quality of Life Fund. The financial
statements and financial highlights of the other funds are presented in
separate semi-annual reports except for the ING U.S. Treasury Money Market
Fund, ING National Tax-Exempt Money Market Fund, ING Mortgage Income Fund,
ING Stable Value Fund, ING Tax Efficient Equity Value Fund, ING Internet
Fund II, ING Balanced Fund, ING Global Real Estate Fund and ING Quality of
Life Fund, which have not commenced operations. The Fund offers five classes
of shares, which have been designated to Class A, B, C, I and X shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The Fund's 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 The Fund uses the amortized cost method to value its
portfolio securities. The amortized cost method involves valuing a security
at its cost and amortizing any discount or premium over the period until
maturity.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME Investment transactions are
recorded on trade date. Realized gains and losses from security transactions
are calculated on the identified cost basis. 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.
U.S. FEDERAL TAX STATUS The 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, the Fund
intends not to be subject to U.S. federal excise tax.
DIVIDENDS AND DISTRIBUTIONS The Fund declares daily dividends from net
investment income. Dividends are paid monthly, generally on the last
business day of each month. Distribution of net realized gains, if any, will
be declared and paid at least annually by the Fund.
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles.
EXPENSES Expenses directly attributable to a fund and a specific class are
charged to that fund or class, other expenses are allocated proportionately
among each fund within the Trust in relation to the net assets of each fund,
or on another reasonable basis.
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
MANAGER AND SUB-ADVISER 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 Fund pursuant to a Management Agreement with the
Trust. The Fund pays the Manager for its services under the Management
Agreement a fee, payable monthly, based on an annual rate of 0.25% of the
average daily net assets of the Fund. The Manager has entered into a
Sub-Advisory Agreement with ING Investment Management LLC (the
"Sub-Adviser"), a wholly-owned indirect subsidiary of ING Group. Under the
Sub-Advisory Agreement, the Sub-Adviser has full investment discretion and
make all determinations with respect to the investment of the Fund's assets
and the purchase and sale of portfolio securities and other investments.
Pursuant to the Sub-Advisory Agreement, the Manager pays to the Sub-Adviser
a monthly fee based on an annual rate 0.125% of the average daily net assets
of the Fund.
For the period ended April 30, 2000, the Manager was entitled to $406,920
and voluntarily waived $237,372 of management fee. The Sub-Adviser was
entitled to $203,460 and voluntarily waived $118,686 of sub-advisory fee.
ING Money Market Fund Semi-Annual Report / April 30, 2000 11
<PAGE> 12
APRIL 30, 2000 (UNAUDITED)
NOTES TO FINANCIAL STATEMENTS
(continued)
DISTRIBUTION PLAN AND SHAREHOLDER SERVICING PLAN The Trust, on behalf of the
Fund, has adopted a Plan of Distribution pursuant to Rule 12b-1 under the
Investment Company Act. The 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 Fund's Class A shares and 0.75% of
average daily net assets attributable to the Fund's 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 Fund.
The Fund has adopted a Shareholder Servicing Plan pursuant to which it may
pay a service fee up to an annual rate of 0.25% of the Fund's average daily
net assets to various banks, trust companies, broker-dealers or other
financial organizations including the Manager and its affiliates.
For the period ended April 30, 2000, the Distributor voluntarily waived part
of the distribution fees. The distribution fees the Distributor was entitled
to was $772,021 and the distribution fees waived was $590,451. The
shareholder servicing fee the Fund paid to the Distributor was $383,505.
In addition, there is 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.
For the period ended April 30, 2000, CDSL's paid to the Distributor were
approximately $8,980 for Class B shares, $1,445 for Class C shares and $199
for Class X shares.
OTHER TRANSACTIONS WITH AFFILIATES ING Fund Services Co. LLC ("ING Fund
Services") has entered into a Fund Services Agreement with the Fund 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, the 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 the 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. REPURCHASE AGREEMENTS
The Fund 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 Fund
will always receive and maintain securities as collateral whose market
value, including accrued interest, will equal or exceed the repurchase
price.
5. 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 Fund has the
ability to issue multiple classes of shares. Each share of a class
represents an identical legal interest in the 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 the
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 Money Market Fund $346,391,961 $3,788,458 $470,981 $16,276,373 $283,368
</TABLE>
12 ING Money Market Fund Semi-Annual Report / April 30, 2000
<PAGE> 13
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Six Months Ended April 30, 2000 Period Ended October 31, 1999
------------------------------- -----------------------------
ING MONEY MARKET FUND Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 454,687,937 $454,687,937 325,378,899 $325,378,899
Shares issued on reinvestment 6,139,281 6,139,281 3,010,550 3,010,550
Shares redeemed (342,539,094) (342,539,094) (100,268,229) (100,268,229)
------------ ------------ ------------ ------------
Net increase 118,288,124 $118,288,124 228,121,220 $228,121,220
-----------------------------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 10,076,413 $ 10,076,412 1,897,590 $ 1,897,590
Shares issued on reinvestment 38,122 38,122 7,368 7,368
Shares redeemed (7,498,609) (7,498,609) (734,755) (734,755)
------------ ------------ ------------ ------------
Net increase 2,615,926 $ 2,615,925 1,170,203 $ 1,170,203
-----------------------------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 1,756,855 $ 1,756,855 675,705 $ 675,705
Shares issued on reinvestment 11,675 11,675 5,450 5,450
Shares redeemed (1,741,837) (1,741,837) (239,212) (239,212)
------------ ------------ ------------ ------------
Net increase 26,693 $ 26,693 441,943 $ 441,943
-----------------------------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold 39,600,100 $ 39,600,100 1,901,244 $ 1,901,244
Shares issued on reinvestment 378,461 378,461 5,232 5,232
Shares redeemed (25,608,630) (25,608,630) -- --
------------ ------------ ------------ ------------
Net increase 14,369,931 $ 14,369,931 1,906,476 $ 1,906,476
-----------------------------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 461,672 $ 461,672 2,378,957 $ 2,378,957
Shares issued on reinvestment 13,081 13,081 19,653 19,653
Shares redeemed (1,703,033) (1,703,032) (886,834) (886,834)
------------ ------------ ------------ ------------
Net increase (decrease) (1,228,280) $ (1,228,279) 1,511,776 $ 1,511,776
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class I shares commenced offering on October 13, 1999.
(3) Class X shares commenced offering on January 20, 1999.
ING Money Market Fund Semi-Annual Report / April 30, 2000 13
<PAGE> 14
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-ADVISER
ING Investment Management LLC
5780 Powers Ferry Road, N.W., Suite 300
Atlanta, GA 30327
14 ING Money Market Fund Semi-Annual Report / April 30, 2000
<PAGE> 15
ING FUNDS SERVICES
WWW.INGFUNDS.COM -- YOUR 24-HOUR INFORMATION SOURCE
INSTANT FUND AND FINANCIAL MARKET INFORMATION To learn the latest information on
the ING Funds and your accounts, look no further than our Web site at
www.ingfunds.com. When you reach our homepage you'll have instant access to the
prior business day closing prices on all the ING Funds. As a special feature, we
also provide updates throughout the business day on the performance of several
key financial market indicators -- including the Dow Jones Industrial Average,
the S&P 500 Index and the 30-year Treasury bond. What's more, you can even
receive free quotes on thousands of mutual funds and stocks.
[WEB SITE 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 SITE 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.
[WEB SITE GRAPHIC]
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.
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.
ING Money Market Fund Semi-Annual Report / April 30, 2000 15
<PAGE> 16
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>
<CAPTION>
STOCK FUNDS
-----------
<S> <C> <C>
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
</TABLE>
<TABLE>
<CAPTION>
BOND FUNDS
----------
<S> <C> <C>
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>
MONEYMARKET 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> 17
ING MUTUAL FUNDS
INFORMATION AND SERVICES
CUSTOMER SERVICE REPRESENTATIVES
1-877-INFO-ING
(1-877-463-6464)
MON - FRI 8:00AM - 6:00PM
AUTOMATED FUND AND
ACCOUNT INFORMATION
1-877-INFO-ING
(1-877-463-6464)
24 HOURS, 7 DAYS A WEEK
WEB SITE
WWW.INGFUNDS.COM
TRANSFER AGENT
DST SYSTEMS, INC.
333 WEST 11TH STREET
KANSAS CITY, MO 64105
THIS REPORT IS AUTHORIZED FOR USE ONLY WHEN PRECEDED OR ACCOMPANIED BY THE
CURRENT ING FUNDS PROSPECTUS, WHICH DESCRIBES IN GREATER DETAIL THE INVESTMENT
POLICIES, MANAGEMENT FEES AND OTHER MATTERS OF INTEREST TO INVESTORS. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY. THIS REPORT DOES
NOT OFFER FOR SALE OR SOLICIT ORDERS TO BUY ANY SECURITY. IF USED AS SALES
MATERIAL AFTER JUNE 30, 2000, THIS REPORT MUST BE ACCOMPANIED BY PERFORMANCE FOR
THE MOST RECENTLY COMPLETED CALENDAR QUARTER.
[ING FUNDS LION LOGO]
1475 Dunwoody Drive
West Chester, PA 19380-1478
