<PAGE> 1
AMERICAS ING FUNDS
ING GLOBAL/INTERNATIONAL MUTUAL FUNDS
ANNUAL REPORT/OCTOBER 31, 2000
[GRAPHIC OF WORLD]
[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 OCTOBER 31, 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 October 31,
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 - 37 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.
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. and ING Pilgrim
Securities, Inc. through a sub-distribution agreement. Member NASD.
<PAGE> 3
[PHOTO OF ROBERT W. STALLINGS]
ROBERT W. STALLINGS
President & CEO
ING Funds Trust
"We continue to believe it's imperative to take a long-term investment approach
and to maintain a broadly diversified portfolio."
A LETTER FROM THE PRESIDENT
DEAR FELLOW SHAREHOLDERS,
We are pleased to present the latest ING Funds Annual Shareholder Report,
covering the one-year period ended October 31, 2000. We include a review of the
financial markets, followed by detailed information about your fund's
investment.
A VOLATILE STOCK MARKET During the one-year reporting period, the S&P 500 Index
produced a 6.09% return, while the Nasdaq composite rose 13.59% and the MSCI
EAFE Index fell 2.66%.
The period began on a positive note for U.S. equities. The bull market
continued through February, with the majority of the gains produced by large-cap
growth and technology-related stocks. In March, however, the markets experienced
a widely anticipated correction. Continued strong economic growth, inflationary
pressures and rising interest rates drove the decline. While other types of
stocks were dragged down, technology issues experienced the brunt of the fall.
Within a few weeks the technology-heavy Nasdaq composite had fallen 37% from its
peak.
The equity markets then abruptly changed course for a brief period during
the summer. Investors were encouraged that signs of moderating economic growth
would result in an end to interest rate hikes by the Federal Reserve. However,
market sentiment shifted yet again, as uncertainty arose regarding the state of
corporate profits in the face of an economic slowdown and high energy prices.
All told, by the end of the reporting period the Standard & Poor's 500 and the
Nasdaq were down 7% and 46%, respectively, from their March 2000 peaks.
The overseas equity markets were not immune from the market's gyrations.
Once again, the technology sector was the most volatile area. By the end of the
reporting period, most developed markets in Europe, Japan and Asia, as well as
many emerging equity markets, registered negative returns.
A MIXED BOND MARKET During the reporting period the bond market, as measured by
the Lehman Brothers Aggregate Bond Index, generated a 7.30% return. Early in the
reporting period most sectors of the U.S. bond faltered, due to rising interest
rates. However, when the Federal Reserve moved to a more accommodating monetary
policy, the U.S. fixed income market subsequently rebounded. One noteworthy
exception was the performance of high yield bonds. Rising default rates, falling
demand and slower economic growth caused these issues to perform poorly during
the period.
LOOKING AHEAD As we look ahead, it's entirely possible that the gyrations we're
experiencing in the financial markets could continue. Uncertainty surrounding
the direction of the economy, corporate profits and inflation could unsettle
investors in the coming months. As such, we continue to believe it is imperative
to take a long-term investment approach and to maintain a broadly diversified
portfolio.
NEW PARTNERSHIP On September 1, ING purchased ReliaStar Financial Corp., the
indirect parent company of Pilgrim Capital Corp., now ING Pilgrim Capital
Corporation. ING Pilgrim is the new umbrella sales and marketing name for the
Pilgrim and ING fund families, with approximately one million shareholders. We
are happy to bring together the global financial services power of ING with the
disciplined investment experience of Pilgrim Funds and ING Funds. The new
organization will strive to provide unparalleled global asset management
expertise to investors and investment professionals.
I would like to thank you for your ING Funds investment, and look forward to
serving your needs in the future.
Sincerely,
/s/ Robert W. Stallings
Robert W. Stallings,
President & CEO
November 17, 2000
ING Global / International Mutual Funds Annual Report / October 31, 2000 1
<PAGE> 4
ING FUNDS PERFORMANCE SUMMARY
DATA AS OF OCTOBER 31, 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 -36.10%
EQUITY FUND B 03/01/00 n/a 45683U359 n/a n/a n/a -35.88
C 03/01/00 n/a 45683U342 n/a n/a n/a -33.27
X(2) 03/01/00 n/a 45683U334 n/a n/a n/a -35.88
ING GLOBAL A 03/01/00 IGCAX 45683V662 GlCommA n/a n/a -31.20
COMMUNICATIONS FUND B 03/01/00 IGCBX 45683V670 GlCommB n/a n/a -30.94
C 03/01/00 n/a 45683V688 n/a n/a n/a -27.93
X(2) 03/01/00 n/a 45683V654 n/a n/a n/a -30.84
ING GLOBAL INFORMATION A 12/15/98 IITAX 45683U185 GlInTchA -5.44% 49.49% 159.81
TECHNOLOGY FUND B 12/15/98 INTBX 45683U177 GlInTchB -5.18 52.82 168.71
C 12/15/98 IITCX 45683U169 GlInTchC -1.15 56.77 172.62
X(2) 01/11/99 n/a 45683U151 n/a -5.07 52.73 115.58
ING EUROPEAN A 12/15/98 IEEAX 45683U326 EuroEqA -15.31 -3.01 6.22
EQUITY FUND B 12/15/98 n/a 45683U318 n/a -15.18 -2.83 7.23
C 12/15/98 n/a 45683U292 n/a -11.95 0.77 10.81
X(2) 01/15/99 n/a 45683U284 n/a -15.09 -2.71 1.76
ING INTERNATIONAL A 12/15/98 IIEAX 45683U417 IntlEqA -25.53 -9.92 6.47
EQUITY FUND B 12/15/98 n/a 45683U391 n/a -25.30 -9.69 7.54
C 12/15/98 n/a 45683U383 n/a -22.25 -6.10 11.49
X(2) 02/16/99 n/a 45683U375 n/a -25.19 -9.46 5.21
ING GLOBAL A 12/15/98 IGBAX 45683U458 GlBrNmA -13.76 -1.25 14.29
BRAND NAMES FUND B 12/15/98 n/a 45683U441 n/a -13.56 -0.87 15.75
C 12/15/98 n/a 45683U433 n/a -9.91 3.13 19.85
X(2) 01/14/99 n/a 45683U425 n/a -13.48 -0.96 7.39
ING INTERNATIONAL A 12/15/98 IBFAX 45683U797 IntlBdA -9.53 -12.08 -21.00
BOND FUND B 12/15/98 n/a 45683U789 n/a -10.33 -12.88 -21.35
C 12/15/98 n/a 45683U771 n/a -6.60 -9.26 -18.07
X(2) 01/11/99 n/a 45683U763 n/a -10.32 -12.87 -20.41
</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 Annual Report / October 31, 2000
<PAGE> 5
DATA AS OF 10/31/00
ING EMERGING MARKETS EQUITY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH OF CAPITAL
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
Taiwan 12.8%
Brazil 11.7
Mexico 11.6
South Korea 9.2
South Africa 7.5
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Oil Companies: Integrated 9.4%
Telephone: Integrated 9.3
Cellular Telecommunication 6.1
Semicon. Compo: Integrated 6.0
Commercial Bank: Non US 5.6
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Taiwan Semiconductor Mfg. ADR 4.9%
China Mobile (Hong Kong) Ltd. 4.5
India Fund Inc. 4.1
Samsung Electronics 3.4
Petroleo Brasileiro S.A. ADR 3.3
Check Point Software Technologies Ltd. 3.2
Telefonos de Mexico SA ADR 3.0
China Steel Corp. ADR 2.2
OAO Lukoil Holding ADR 2.1
Wal-Mart de Mexico 2.0
</TABLE>
GROWTH OF A $10,000 INVESTMENT
ING Emerging Markets Equity Fund vs.
MSCI Emerging Market Free Index: 3/1/00 - 10/31/00
[LINE GRAPH]
<TABLE>
<CAPTION>
MSCI Emerging
Class A shares Class B shares Class C shares Market Free Index
<S> <C> <C> <C>
9425.07 10000 10000 10000
9019.79 9560 9560 10033
8020.74 8510 8500 9067.83
7606.03 8060 8060 8673.37
8143.26 8630 8620 8950.92
7596.61 8040 8040 8480.1
7860.51 8320 8310 8509.78
6823.75 7220 7210 7755.82
6390.2 6412.5 6672.6 7189.64
</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%; Class C shares has a maximum CDSC of 1%. Ending
values include change in share value and reinvestment of distributions. The
MSCIEmerging 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.
CUMULATIVE TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
<S> <C> <C> <C> <C>
Inception - 36.10% - 35.88% - 33.27% - 35.88%
</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.
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. Total returns (not annualized) include change in share value and
reinvestment of distributions.
MANAGER'S OVERVIEW
KATE MUNDAY
Portfolio Manager
OBJECTIVE
The Fund seeks to provide LONG-TERM CAPITAL APPRECIATION by investing in
companies based or operating primarily in DEVELOPING ECONOMIES THROUGHOUT THE
WORLD.
"...when sentiment changes we believe the initial rally is likely to be rapid
and sharp."
SEE PAGE 12 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed since its inception in March 2000?
ANSWER: The timing of the Fund's inception proved unfortunate, as it
occurred just ahead of a sharp global stock market correction.
QUESTION: What caused this volatility across the financial markets?
ANSWER: Irrespective of the domestic fundamentals, emerging market equities
have declined as liquidity has been withdrawn from the markets. On a
market specific basis there have also been setbacks. In Korea, the
much needed restructuring of the corporate sector has been
disappointingly slow. Meanwhile, in Russia, impressive progress on
the political and economic fronts has been overshadowed in the short
term by corporate governance concerns.
QUESTION: What investment strategies have benefited the Fund since its
inception?
ANSWER: Our overweight positions in Latin America and China were positive
for the Fund. In Latin America, we correctly focused our exposure in
Brazil and Mexico. In both cases our analysis correctly predicted
that better-than-expected economic data would result in higher
earnings announcements. In China, the country is benefiting from a
healthy economic recovery, excess liquidity and a commitment to
reform.
QUESTION: What strategies were less successful for the Fund?
ANSWER: The Fund's overweight position in Taiwanese technology stocks and
our underweight in South Africa detracted from results. In Taiwan,
we held high quality stocks such as Taiwan Semiconductor
Manufacturing Co. and Hon Hai Precision. However, the market
punished all technology sector as a single block.
In South Africa, we believed that the domestic economy
continued to face a depressed growth outlook. As such, we
underweighted it versus the benchmark. Contrary to our expectations,
the market has performed well, as investors have regarded the market
as a safe haven, given its limited exposure to the technology sector
and a large captive domestic investor base.
QUESTION: What is your outlook for the emerging equity markets?
ANSWER: Until much needed liquidity flows back into the asset class we would
expect that volatility will remain. However, when sentiment changes
we believe the initial rally is likely to be rapid and sharp. Given
the difficulty of timing the change in sentiment we feel the prudent
strategy is to maintain an exposure to emerging markets. This
strategy is underpinned by our positive economic, political and
corporate analysis.
[ING FUNDS GRAPHIC]
ING Global / International Mutual Funds Annual Report / October 31, 2000 3
<PAGE> 6
DATA AS OF 10/31/00
ING GLOBAL COMMUNICATIONS FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH OF CAPITAL
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Telecommunication Services 17.6%
Telecommunication Equipment 13.8
Cellular Telecommunications 13.6
Telecom. Equip.: Fiber Optics 12.0
Network Software 5.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 77.1%
United Kingdom 8.4
Netherlands 3.3
Sweden 2.7
Finland 2.4
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Micromuse Inc. 5.6%
Comverse Technology, Inc. 4.7
Vodafone Group PLC 4.7
Amdocs Ltd. 4.6
Phone.com Inc. 4.1
Qwest Communications International 3.9
CIENA Corp. 3.9
Convergys Corp. 3.7
Juniper Networks Inc. 3.2
CSG Systems International, Inc. 3.1
</TABLE>
GROWTH OF A $10,000 INVESTMENT
ING Global Communications Fund vs.
NASDAQ Telecom Index: 3/1/00 - 10/31/00
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares NASDAQ Telecom Index
<S> <C> <C> <C>
9425.07 10000 10000 10000
8934.97 9470 9480 9392.32
7935.91 8410 8420 7587
7144.2 7560 7580 6430.74
8586.24 9090 9110 7418.39
8143.26 8610 8630 6827.52
8633.36 9130 9150 7084.57
7879.36 8320 8340 6219.11
6880.3 6907 7207 5317.43
</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%; Class C shares has a maximum CDSC of 1%. Ending
values include change in share value and reinvestment of distributions. 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.
CUMULATIVE TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
<S> <C> <C> <C> <C>
Inception - 31.20% - 30.94% - 27.93% - 30.84%
</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. 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. Total returns (not
annualized) include change in share value and reinvestment of distributions.
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.
"Growth opportunities abound, and with the severe market correction, valuations
now appear reasonable."
SEE PAGE 14 FOR FINANCIAL DETAILS.
QUESTION: How has the Fund performed since its inception at the beginning of
March 2000?
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,
even though the Fund handily outperformed its benchmark, it
generated poor short-term results.
QUESTION: What are some of the strategies that helped the Fund during this
difficult period?
ANSWER: Our outperformance versus the benchmark was achieved by heavily
underweighting telecommunication service carriers, and maintaining
an overweight position in infrastructure stocks. These included
network equipment manufacturers, component suppliers and specialist
software suppliers.
In addition, our substantial core weight in software stocks
provided the Fund with a higher degree of stability during a long
summer of high stock market volatility. These companies benefited as
carriers spent more of their budgets on software solutions to
improve the services they offer to their customers. Also, an early
overweight in optical systems companies provided much of the upside
performance for the Fund during the period.
QUESTION: What were some of the areas that detracted from results?
ANSWER: The strategy for the year has been to try and exploit two very
obvious disconnects in the communications sector. The strong stock
performance in the infrastructure area was driven by an
unprecedented capital expenditure by service providers, which in
turn adversely affected their stock price. During the summer months
we began to shift out of infrastructure stocks and into, what we
perceived to be, oversold service providers. Unfortunately, the
sell-off in service providers continued into the third quarter.
QUESTION: What is your outlook for the global communications industry and the
Fund?
ANSWER: We see many challenges in the coming months, that could ultimately
result in many opportunities. In our opinion, bearish sentiment has
reached extremely high levels, both in technology and in the
telecommunications services providers. We do not share this
sentiment, as capital expenditure in the service provider area is
not going to go away. However, it could shift towards technology
solutions that allow carriers to differentiate their service
offerings at attractive prices for consumers. As such, we believe
overall communications spending will increase as a proportion of GDP
over the long term. In addition, growth opportunities abound, and
with the severe market correction, valuations now appear reasonable.
[ING FUNDS GRAPHIC]
4 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 7
DATA AS OF 10/31/00
ING GLOBAL INFORMATION TECHNOLOGY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 86.7%
United Kingdom 4.0
Germany 2.7
Canada 2.3
Ireland 1.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Enterprise Software: Service 11.6%
Computers: Memory Devices 9.3
Internet Applications Software 7.8
Applications Software 7.6
Telecom. Equipment: Fiber Optics 6.6
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
i2 Technologies, Inc. 4.9%
VERITAS Software Corp. 4.9
EMC Corp. 4.6
BEA Systems, Inc. 4.5
Siebel Systems Inc. 4.2
Network Appliance, Inc. 4.2
Sun Microsystems, Inc. 4.2
CIENA Corp. 3.9
Brocade Communications Systems 3.1
Software.com Inc. 3.0
</TABLE>
GROWTH OF A $10,000 INVESTMENT
ING Global Information Tech. Fund vs.
GS Tech. Industry Composite Index: 12/15/98 - 10/31/00
<TABLE>
<CAPTION>
GS Technology Industry
Class A shares Class B shares Class C shares 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 17280 17280 15540
20160 21280 21260 18315
25894 27323 27303 21302
24683 26018 26009 19985
32716 34055 34036 23609
30461 32077 32078 24667
27982 29467 29458 22516
24674 25956 25957 20491
27592 29022 29012 22495
26645 28007 27997 21445
31408 33009 33000 24232
29095 30565 30556 20306
25981 26871 27262 18772
</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.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
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 49.49% 52.82% 56.77% 52.73%
Inception 66.20 69.20 70.51 53.03
</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.
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. Total returns include change in share value and reinvestment of
distributions.
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.
"..specifically two-thirds of the rise in U.S. productivity is related to IT.
SEE PAGE 15 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund continued to produce extraordinary results for
shareholders. It also handily outperformed its benchmark, the
Goldman Sachs Technology Index.
QUESTION: How was the Fund positioned during the year?
ANSWER: We began the year by increasing our weighting in software and the
Internet, and decreased it after the holiday season. Our weighting
in Europe was significantly reduced because of valuations and the
slowdown in new projects after Y2K concerns ended. The proceeds were
then invested in the more liquid bellwether technology names. When
the growth outlook and confirmation of the sustainability in growth
of the storage sector increased, the weighting was significantly
increased within this theme. At the end of the period some profits
were locked in, and put again in the front office and supply chain
software companies.
QUESTION: Which strategies enhanced the Fund's performance?
ANSWER: Within the storage theme Network Appliance produced dramatic gains.
Data under management within companies is growing in excess of 100%
yearly, and Network Appliance develops systems that makes it
possible to rapidly increase the storage without disrupting the
computer environment. Within the software theme BEA Systems also
rose sharply. BEA has benefited from the rapid adoption of the
Internet by bricks and mortar companies.
QUESTION: What areas detracted from results?
ANSWER: Component shortage was probably the most recurring issue during the
reporting period. We added Micron to the Fund because we expected
shortages in DRAM as well as an adoption of the Windows 2000 system,
which requires more memory. However, PC growth was less than
expected, and shortages didn't appear to be severe enough because PC
vendors built up inventory to make sure they could meet demand.
QUESTION: What is your outlook for the global IT market and the Fund?
ANSWER: IT is increasingly being used as a competitive weapon and a cost
cutting tool. Recent research has estimated that specifically
two-thirds of the rise in U.S. productivity is related to IT. In our
opinion, the bull case for this technology sector rests on
continuing affirmation that technology spending improves efficiency,
which then boosts returns on capital. However, we expect volatility
to remain high, as not all the companies are able to tap into new
growth opportunities successfully. The underlying trends however
within the technology sector remain very strong and we therefore
remain confident on the long-term outlook.
[ING FUNDS GRAPHIC]
ING Global / International Mutual Funds Annual Report / October 31, 2000 5
<PAGE> 8
DATA AS OF 10/31/00
ING EUROPEAN EQUITY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United Kingdom 31.1%
France 14.9
Netherlands 12.9
Switzerland 11.0
Germany 10.0
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Money Center Banks 13.5%
Medical: Drugs 9.3
Oil Companies: Integrated 8.1
Telecommunication Equipment 7.8
Cellular Telecommunications 6.5
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Vodafone Group PLC 5.4%
Royal Dutch Petroleum Co. 3.8
Nokia Oyj 3.3
BP Amoco PLC 2.6
Telefonaktiebolaget LM Ericsson 2.3
Roche Holding AG 2.0
HSBC Holdings PLC 1.9
Nestle SA - Registered Shares 1.8
Fortis (NL) NV 1.8
Novartis AG - Registered Shares 1.6
</TABLE>
GROWTH OF A $10,000 INVESTMENT
ING European Equity Fund vs.
FT Europe Index: 12/15/98 - 10/31/00
[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 11842 11802 11661
11292 11863 11822 11602
11447 12017 11976 11882
11457 12017 11976 11754
11340 11884 11843 11698
10787 11308 11267 11176
10622 10723 11081 11082
</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.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
AVERAGE ANNUAL TOTAL RETURN(2) (with sales charge)
<TABLE>
<CAPTION>
Class A shares Class B shares Class C shares Class X shares
<S> <C> <C> <C> <C>
1-Year -3.01% -2.83% 0.77% -2.71%
Inception 3.27 3.79 5.62 0.98
</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.
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. Total returns include change in share value and reinvestment of
distributions.
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.
"MANY OF OUR TECHNOLOGY STOCKS PROFITED FROM THE STRONG GROWTH IN MOBILE AND
BROADBAND TELECOMMUNICATIONS."
SEE PAGE 16 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the 12-month reporting period?
ANSWER: European markets rose a healthy 25% during the period under review.
However, this gain was almost entirely eaten away by the strong rise
of the dollar against the European currencies. The Fund generated
satisfactory results and outperformed its benchmark, despite fast
and furious sector rotations.
QUESTION: How did the Fund's portfolio positioning change during the year?
ANSWER: The expected slowdown in economic growth in 2001 has caused us to
reduce the cyclical exposure of the Fund. We reduced the weight of
basic industries, general industrials and cyclical services in favor
of more defensive sectors, including food producers, financials and
utilities.
QUESTION: What strategies aided the Fund's performance?
ANSWER: Our overweight in the technology sector -- in particular our
holdings in Alcatel, CMG, Reuters and STMicroelectronics -- all
contributed significantly. Many of our technology stocks profited
from the strong growth in mobile and broadband telecommunications.
Our underweight in basic industries, such as steel, building
materials, chemicals and other cyclical sectors was also beneficial.
These sectors underperformed, mainly because the expected slowdown
in economic growth in 2001 has hurt earnings forecasts.
QUESTION: What strategies detracted from the Fund's performance?
ANSWER: We were underweight the strong performing media sector because of
valuation reasons. We believe the implied growth of these stocks is
too high to accomplish. In addition, we did not have a direct
exposure to the tobacco industry. Tobacco shares outperformed, as
the threat of massive payments in tobacco litigation diminished.
QUESTION: What is your outlook for the European equity markets going forward?
ANSWER: We expect European equities to end the year on a positive note.
Valuations have corrected to a fair range, and earnings growth for
this year should be strong and next year should be reasonable.
Within the market, technology could rebound after the decline in
October, but we do not expect strong indiscriminate gains, as profit
warnings in the U.S. may become another minefield in this sector. We
feel financials should keep outperforming, as the end of the
tightening cycle appears close and the soft landing scenario remains
feasible. For 2001, the continuation of news supporting a soft
landing will be necessary to generate positive returns in equity
investments.
[ING FUNDS LOGO]
6 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 9
DATA AS OF 10/31/00
ING INTERNATIONAL EQUITY FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
Japan 20.1%
United Kingdom 17.4
France 8.0
Switzerland 7.4
Netherlands 5.9
</TABLE>
<TABLE>
<CAPTION>
REGIONAL BREAKDOWN(1)
<S> <C>
Europe 56.7%
Pacific Rim 31.3
North America 9.1
South America 2.1
Africa 0.8
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Royal Dutch Petroleum Co. 2.7%
Vodafone Group PLC 2.6
HSBC Holdings PLC 2.5
Matsushita Electric Industrial Co. 2.4
Hutchison Whampoa Ltd. 2.4
BP Amoco PLC 2.2
Novartis AG - Registered Shares 2.2
Nokia Oyj 2.2
Shire Pharmaceuticals Group PLC 2.1
Logica PLC 2.1
</TABLE>
GROWTH OF A $10,000 INVESTMENT
ING International Equity Fund vs.
MSCI EAFE Index: 12/15/98 - 10/31/00
[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 12973 12960 12686
11857 12461 12447 12379
12271 12889 12877 12866
11739 12325 12322 12329
11848 12429 12416 12439
11100 11645 11631 11836
10647 10754 11149 11559
</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.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
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 -9.92% -9.69% -6.10% -3.88% -9.46%
Inception 3.40 3.95 5.97 0.57 3.02
</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. 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. Total returns include
change in share value and reinvestment of distributions.
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.
"ON A COUNTRY-SPECIFIC STANDPOINT, WE'RE TURNING MORE POSITIVE ABOUT THE
PROSPECTS IN THE UK..."
SEE PAGE 17 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: After a strong start, the Fund underperformed its benchmark, the
MSCI EAFE Index.
QUESTION: What were some of the major factors behind the Fund's returns?
ANSWER: In the fourth quarter we were rewarded for our exposure to
technology, telecoms, media, and the emerging markets. Since that
time, we have seen a significant rotation away from the growth
sectors in most markets, and our stock selection bias to financials
and healthcare, the so-called 'defensive growth' segments, have not
fared as well as we anticipated.
QUESTION: What investment strategies have benefited Fund performance?
ANSWER: Our underweight in Japan was the single most important positive
contributor. We felt that the country's rally in 1999 was a "false
start" on reform, and that economic projections were optimistic. The
market's lackluster results have been proof that this was the case.
On a stock selection basis we held several winning issues. One such
example was Russian holding Surgutneftegaz, a natural exploration
and delivery firm. The cheapness of the stock, combined with firming
of gas prices and increased political stability has led to strong
results.
QUESTION: Were there investment strategies that did not meet your
expectations?
ANSWER: We maintained overweight positions in both Hong Kong and Singapore
on the basis that global growth would, at worst, land softly.
Unfortunately, the focus on rising interest rates in the U.S. has
compounded fears in Asia and emerging markets. As a result, neither
country has rallied, despite solid economic growth and attractive
valuations. In addition, our European stocks, particularly in France
and Italy, have not done well in the recent environment. The
telecoms, in particular, have underperformed on worries about the
cost of future infrastructure build out.
QUESTION: What is your outlook for international equities?
ANSWER: We are currently somewhat more optimistic than much of Wall Street,
as we have a more dynamic view of growth. We believe the long-term
prospects for technology remains strong. In addition, the spread of
globalization in capital flows, labor usage, and output will
continue to progress. The more efficient allocation and pricing of
credit by capital markets remains a dynamic factor, which in the
longer run is likely to favor new economy sectors and companies,
over old. On a country-specific standpoint, we're turning more
positive about the prospects in the UK, based on two possibilities
-- either a modest growth surprise or that short term interest rates
could be cut.
[ING FUNDS LOGO]
ING Global / International Mutual Funds Annual Report / October 31, 2000 7
<PAGE> 10
DATA AS OF 10/31/00
ING GLOBAL BRAND NAMES FUND
FOR INVESTORS SEEKING LONG-TERM GROWTH
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 64.0%
----------------------------------
Netherlands 10.5
----------------------------------
Japan 7.0
----------------------------------
France 6.7
----------------------------------
Finland 2.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE INDUSTRIES(1)
<S> <C>
Cosmetics & Toiletries 11.9%
----------------------------------
Beverages: Non-alcoholic 7.8
----------------------------------
Multimedia 7.7
----------------------------------
Brewery 7.3
----------------------------------
Auto-Cars: Light Trucks 6.7
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS(1)
<S> <C>
Microsoft Corp. 6.2%
----------------------------------
Heineken NV 5.1
----------------------------------
Intel Corp. 5.0
----------------------------------
Time Warner Inc. 4.9
----------------------------------
The Coca-Cola Co. 4.8
----------------------------------
L'Oreal SA 4.5
----------------------------------
McDonald's Corp. 4.3
----------------------------------
American Express Co. 3.4
----------------------------------
Johnson & Johnson 3.4
----------------------------------
Colgate-Palmolive Co. 3.3
</TABLE>
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 - 1.25% - 0.87% 3.13% - 0.96%
--------------------------------------------------------------------------------
Inception 7.38 8.11 10.13 4.05
</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.
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. Total returns include change in share value and reinvestment of
distributions.
GROWTH OF A $10,000 INVESTMENT
ING Global Brand Names Fund vs.
MSCI World Index: 12/15/98 - 10/31/00
[LINE GRAPHIC OMITTED]
<TABLE>
<CAPTION>
Class A Class B Class C GS Technology Industry
shares shares shares Composite Index
------ ------ ------ ---------------
<S> <C> <C> <C>
9,425 10,000 10,000 10,000
10,028 10,640 10,640 10,647
10,547 11,180 11,180 10,881
10,075 10,680 10,680 10,593
10,509 11,130 11,130 11,036
10,396 11,000 11,000 11,473
10,123 10,710 10,710 11,055
10,613 11,230 11,230 11,572
10,631 11,240 11,250 11,539
10,669 11,270 11,280 11,520
10,217 10,790 10,790 11,410
10,905 11,500 11,510 12,004
11,244 11,860 11,870 12,344
12,489 13,252 13,170 13,345
11,944 12,674 12,583 12,582
11,734 12,350 12,360 12,617
12,584 13,252 13,252 13,490
12,221 12,846 12,856 12,921
11,715 12,320 12,319 12,595
12,355 12,978 12,988 13,021
12,107 12,715 12,715 12,656
12,097 12,684 12,694 13,070
11,305 11,854 11,864 12,376
11,429 11,575 11,985 12,171
</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.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
--------------------------------------------------------------------------------
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.
"Despite the global market correction, the Fund continued to hold a number of
stocks that performed well..."
SEE PAGE 19 FOR FINANCIAL DETAILS.
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund generated relatively 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
period?
ANSWER: During the first half of the reporting period, 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. During the second half of
the period the global markets corrected and investors shifted their
preference from growth to more defensive-oriented stocks. The Fund's
overweight in these issues help lead to strong results.
QUESTION: What were some of the strategies you used to enhance performance?
ANSWER: Despite the global market correction, the Fund continued to hold a
number of stocks that performed well in recent months. For example,
Coca-Cola appreciated after reports that its third-quarter earnings rose
39%, due to increased sales in Asia and lower costs. PepsiCo also profited
from rising sales volumes. Philip Morris surged upon easing threats of
legal judgements against the tobacco companies. Unilever was also a solid
performer. The firm purchased Bestfoods in June, and reported a 7.2% rise
in third-quarter earnings, aided by the strong dollar. Sales rose 13% as
the company weeded out weaker product lines to focus on global brands. The
new strategy is clearly paying off.
QUESTION: Were there any areas that detracted from results?
ANSWER: Our holding in Intel fell sharply after news that its third quarter
sales would fall short of forecasts, due to weaker personal computer demand
in Europe. Sony shares were also hit hard after the company reported a
profit shortfall. This was largely the result of the large development
costs associated with Playstation 2.
QUESTION: What is your outlook for the Fund going forward?
ANSWER: We are slightly positive on the market outlook. Until the end of this
year we believe the stock markets will continue to move sideways and remain
volatile. More sector rotation can be expected, as long as uncertainty
about the euro, oil prices and the U.S. economy remains. A soft landing
scenario for the U.S. economy still remains the most likely scenario, and
investor attention has shifted from interest rate fear to concerns about
earnings. In this environment we believe investors will continue to favor
defensive stocks, which are relatively insensitive to economic
developments.
--------------------------------------------------------------------------------
8 ING Global/International Mutual Funds Annual Report/October 31, 2000
[ING FUNDS GRAPHIC]
<PAGE> 11
DATA AS OF 10/31/00
ING INTERNATIONAL BOND FUND
FOR INVESTORS SEEKING HIGH CURRENT INCOME AND GROWTH POTENTIAL
<TABLE>
<CAPTION>
CREDIT ALLOCATION(1)
<S> <C>
U.S. Treasury 28.6%
U.S. Government 4.7
AAA/AA 56.1
Repurchase Agreement 1.9
NR/NR 8.7
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE COUNTRIES(1)
<S> <C>
United States 35.2%
Germany 27.1
Japan 9.3
Netherlands 6.6
France 5.9
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE HOLDINGS(1)
<S> <C>
US Treasury Inflation Protected Bonds,
4.25% due 1/15/2010 11.2%
US Treasury Inflation Protected Bonds,
3.875% due 1/15/2009 10.7
Bundesschatzanweisungen,
3.0% due 12/15/2000 6.9
Bundesrepublic Deutschland,
5.625% due 1/4/2028 6.3
Bundesobligation,
4.75% due 11/20/2001 4.9
</TABLE>
GROWTH OF A $10,000 INVESTMENT
ING International Bond Fund vs. SB Non-US World Gov't. Bond Index: 12/15/98 -
10/31/00
[LINE GRAPH}
<TABLE>
<CAPTION>
SB Non-US
World Gov't.
Class A shares Class B shares Class C shares 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 8562 8573 9343
7961 8269 8291 8935
8030 8347 8360 9026
8198 8510 8522 9269
8079 8384 8396 9019
8030 8330 8342 8877
8049 8348 8360 8849
7900 7865 8193 8663
</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.
PLEASE SEE PAGES 10 AND 11 FOR FOOTNOTES, WHICH INCLUDE ADDITIONAL DISCLOSURES
AND RISK CONSIDERATIONS.
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 -12.08% -12.88% -9.26% -12.87%
Inception -11.80 -12.01 -10.07 -11.89
</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.
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. Total returns include change in share value and reinvestment of
distributions.
MANAGER'S OVERVIEW
[PHOTO OF PAUL THURSBY OMITTED]
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.
" ...despite this environment the Fund has generated relatively better
performance than its benchmark..."
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 generated relatively better results than its benchmark.
QUESTION: Why did international bonds lag during the period?
ANSWER: Strong global growth rates have been the main culprit. Because of
this, many international central banks have raised interest rates in
an attempt to cool off their respective economies and keep inflation
in check. These raising rates have taken their toll on many fixed
income markets throughout the world. The surging U.S. stock market
encouraged foreign capital flows into the U.S., which had the effect
of strengthening the dollar.
QUESTION: What strategies enhanced the Fund's performance?
ANSWER: The overwhelming reason for the Fund's relative outperformance was
our overweight exposure to the U.S. dollar and U.S. bonds, both of
which were the best performing markets during the reporting period.
Conversely, our relative underweight of international currencies and
foreign bonds was beneficial, as overseas interest rates generally
rose. While the yen was stable to slightly weaker than the dollar,
the value of the euro fell sharply.
QUESTION: What is the major factor that is likely to affect the bond markets
of the world going forward?
ANSWER: The critical question for bond markets is whether the rise in the
oil price is equivalent to a tax, which will slow activity, or
whether it will stimulate wage demands and thus move inflation to
higher levels, which would lead to further monetary tightening.
QUESTION: What is your outlook for the international bonds?
ANSWER: Monetary policy is generally tighter than was the case during the
1974 oil crisis, when it was simulative. If this view is correct,
then economic activity is likely to weaken quite significantly, and
inflation is likely to subside. Against such a background bonds are
likely to perform well. They could also benefit because central
banks will be reluctant to ease until they are convinced that the
labor market is not misbehaving. As such, monetary policy may become
too tight before it is eased.
Overall, to date we have seen little sign of a pick-up in the
rate of wage settlements, and we believe that this is likely to
remain the case. Labor markets are less unionized and more flexible
than was the case in previous years. The business environment is
also much more competitive than it was, which will restrain the
ability of companies to pass on increases in employment costs to
their customers.
[ING FUNDS GRAPHIC]
ING Global / International Mutual Funds Annual Report / October 31, 2000 9
<PAGE> 12
OCTOBER 31, 2000
FOOTNOTES
FOR FUND PERFORMANCE PAGES 3 - 9
THE VIEWS EXPRESSED IN THE MANAGER'S OVERVIEW ARE SOLELY THOSE OF THE PORTFOLIO
MANAGERS.
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). For ING Emerging Markets
Equity Fund and ING Global Communications Fund, the maximum CDSC for Class B,
Class C and Class X shares are 5%, 1% and 5%, respectively. 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 Annual Report / October 31, 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 Annual Report / October 31, 2000 11
<PAGE> 14
OCTOBER 31, 2000
SCHEDULE OF INVESTMENTS
ING EMERGING MARKETS EQUITY FUND
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
FOREIGN STOCK -- 92.8%
----------------------
BRAZIL -- 11.7%
2,200 Aracruz Celulose SA -- Sponsored ADR $ 33,000
500 Brasil Telecom Participacoes SA -- ADR 27,094
2,300 Companhia Brasileira de Distribuicao
Grupo Pao de Acucar -- Sponsored ADR 81,938
4,100 Companhia de Bebidas das Americas
Participacoes -- ADR 92,506
5,000 Companhia Paranaense de Energia-
Copel -- Sponsored ADR 45,312
900 Companhia Siderurgica Nacional --
Sponsored ADR 24,919
2,000 Companhia Vale do Rio Doce --
Sponsored ADR 46,750
4,800 Embratel Participacoes SA -- ADR(1) 77,700
8,400 Petroleo Brasileiro SA -- ADR(1)(3) 244,125
700 Tele Celular Sul Participacoes SA -- ADR 17,631
2,000 Tele Centro Sul Participacoes SA -- ADR 20,250
2,784 Tele Norte Leste Participacoes SA -- ADR(1) 61,596
300 Telemig Celular Participacoes SA -- ADR 15,750
600 Telesp Celular Participacoes SA -- ADR 18,975
3,300 Uniao de Bancos Brasileiros SA --
Sponsored GDR 83,325
--------
890,871
CHILE -- 1.8%
1,900 Compania de Telecomunicaciones de Chile
SA -- Sponsored ADR(3) 28,975
1,900 Distribucion y Servicio D&S SA -- ADR 33,963
2,400 Embotelladora Andina SA -- A Shares ADR 28,800
2,000 Empresa Nacional de Electricidad SA --
Sponsored ADR(3) 21,000
700 Vina Concha Y Toro SA -- Sponsored ADR 26,862
--------
139,600
CHINA -- 1.4%
522,000 PetroChina Co. Ltd. -- H Shares 109,767
GREECE -- 2.9%
3,100 Alpha Bank SA 114,331
6,200 Hellenic Telecommunications Organization SA 108,065
--------
222,396
HONG KONG -- 6.5%
110,000 Brilliance China Automotive Holdings Ltd. 35,260
51,000 China Mobile (Hong Kong) Ltd.(3) 328,596
14,000 China Unicom Ltd.(3) 28,093
16,000 Citic Pacific Ltd. 64,213
96,000 Ng Fung Hong Ltd. 42,466
--------
498,628
HUNGARY -- 1.9%
400 Gedeon Richter Rt -- Sponsored GDR 19,432
3,900 Magyar Tavkozlesi Rt -- Sponsored ADR 91,650
900 Mol Magyar Olaj-es Gazipari Rt --
Sponsored GDR 13,815
500 OTP Bank Rt -- Sponsored GDR 22,975
--------
147,872
INDIA -- 4.0%
2,300 Dr. Reddy's Laboratories Ltd. --
Sponsored GDR(2) 68,848
1,000 Hindalco Industries Ltd. -- Sponsored GDR(2) 15,050
4,300 ITC Ltd. -- GDR 77,615
4,400 Mahanagar Telephone Nigam Ltd. -- GDR(1)(2) 25,960
4,000 Pentamedia Graphics Ltd. -- GDR(1) 28,500
2,200 Ranbaxy Laboratories Ltd. -- GDR 38,225
1,800 Reliance Industries Ltd. -- Sponsored GDR(2) 23,715
4,800 SSI Ltd. -- Registered Shares -- GDR 23,712
--------
301,625
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
INDONESIA -- 1.1%
91,000 PT Astra International Tbk(3) $ 20,903
22,000 PT Gudang Garam Tbk 23,622
45,500 PT Ramayana Lestari Sentosa Tbk 21,875
53,500 PT Telekomunikasi Indonesia 13,718
--------
80,118
ISRAEL -- 7.0%
10,900 Bank Hapoalim Ltd. 27,579
15,000 Bank Leumi Le-Israel 29,471
10,600 Bezeq Israeli Telecommunication Corp. Ltd. 53,051
1,500 Check Point Software Technologies Ltd.(1)(3) 237,562
900 ECI Telecom Ltd. 21,262
250 Gilat Satellite Networks Ltd.(3) 12,797
500 IDB Holding Corp. Ltd.(3) 16,083
1,350 Orbotech, Ltd.(3) 71,466
1,100 Teva Pharmaceutical Industries Ltd. --
Sponsored ADR 65,037
--------
534,308
MALAYSIA -- 3.9%
7,000 British American Tobacco (Malaysia) Berhad 64,013
22,000 Malayan Banking Berhad 88,000
34,000 Tanjong PLC 63,526
26,000 Tenaga Nasional Berhad 84,158
--------
299,697
MEXICO -- 11.6%
4,154 Cemex SA de CV -- CPO 17,448
3,000 Coca-Cola Femsa SA de CV --
Sponsored ADR 57,563
2,200 Fomento Economico Mexicano, SA de CV --
Sponsored ADR 84,012
7,100 Grupo Carso SA de CV -- Series A1(3) 22,330
94,500 Grupo Financiero Banamex Accival,
SA de CV -- O Shares(3) 147,124
18,000 Grupo Modelo SA de CV -- Series C 47,960
1,500 Grupo Televisa SA -- Sponsored GDR(3) 81,187
4,900 Kimberly-Clark de Mexico, SA de CV --
A Shares 12,518
2,800 Panamerican Beverages, Inc. -- A Shares 46,200
4,145 Telefonos de Mexico SA -- L Shares
Sponsored ADR(1) 223,574
61,200 Wal-Mart de Mexico SA de CV -- Series V(3) 147,397
--------
887,313
PHILIPPINES -- 0.3%
1,680 Philippine Long Distance Telephone Co. 25,455
POLAND -- 0.8%
3,300 Polski Koncern Naftowy Orlen SA -- GDR 25,575
6,500 Telekomunikacja Polska SA -- GDR 32,662
--------
58,237
RUSSIA -- 4.9%
2,300 AO Tatneft -- Sponsored ADR 23,862
800 Mobile Telesystems -- Sponsored ADR(3) 22,100
2,900 OAO Lukoil Holding -- Sponsored ADR 154,860
5,500 RAO Unified Energy Systems -- GDR 69,094
8,200 Surgutneftegaz -- Sponsored ADR 105,370
--------
375,286
</TABLE>
12 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 15
ING EMERGING MARKETS EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
SOUTH AFRICA -- 7.5%
27,200 African Bank Investments Ltd.(3) $ 21,555
2,700 Anglo American Platinum Corp. Ltd. 105,304
2,200 De Beers Centenary Linked Unit 60,540
7,100 Dimension Data Holdings Ltd.(3) 61,243
45,500 FirstRand Ltd. 40,933
1,300 Impala Platinum Holdings Ltd. 55,724
900 Investec Group Ltd. 26,909
4,200 Johnnic Holdings Ltd. 47,786
3,200 Liberty Group Ltd. 24,428
2,200 Nedcor Ltd. 41,330
3,600 Sappi Ltd. 24,671
8,500 Sasol Ltd. 65,110
----------
575,533
SOUTH KOREA -- 9.2%
5,090 Korea Electric Power Corp. 113,658
1,480 Korea Telecom Corp. -- Sponsored ADR 54,575
1,400 Kumkang Korea Chemical Co., Ltd. 49,477
920 Pohang Iron & Steel Co. Ltd. 53,461
4,970 Pohang Iron & Steel Co. Ltd. --
Sponsored ADR 78,588
1,980 Samsung Electronics 248,044
500 SK Telecom Co., Ltd. 106,593
----------
704,396
TAIWAN -- 12.8%
25,260 Asustek Computer Inc. -- GDR 138,298
13,872 China Steel Corp. -- Sponsored ADR(2) 160,320
11,210 Hon Hai Precision Industry Co., Ltd. GDR(3) 129,195
10,400 Synnex Technology International Corp. -- GDR 86,580
15,923 Taiwan Semiconductor Manufacturing
Co. Ltd. -- Sponsored ADR(3) 361,253
3,000 United Microelectronics Corp. -- ADR(3) 34,125
6,575 Winbond Electronics Corp. -- GDR(2)(3) 63,594
----------
973,365
THAILAND -- 1.2%
5,300 Advanced Info Service Public Co. Ltd. --
Foreign Registered(3) 43,619
9,300 BEC World Public Co. Ltd. --
Foreign Registered 44,402
----------
88,021
TURKEY -- 1.4%
1,687,637 Dogan Yayin Holding AS(3) 21,996
2,490,000 Hurriyet Gazetecilik ve Matbaacilik AS 29,902
1,502,800 Turkiye Garanti Bankasi AS(3) 28,611
2,578,371 Yapi ve Kredi Bankasi AS(3) 22,278
----------
102,787
VENEZUELA -- 0.9%
3,400 Compania Anonima Nacional Telefonos
de Venezuela -- ADR 64,600
TOTAL FOREIGN STOCK
(Cost -- $9,388,224) $7,079,875
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
OTHER INVESTMENT COMPANY -- 3.9%
28,000 India Fund Inc.(3)
(Cost -- $427,205) $ 299,250
REPURCHASE AGREEMENT -- 3.3%
$248,000 State Street Bank & Trust Co., 6.540%
due 11/1/2000; Proceeds at maturity -- $248,045;
(Fully collateralized by Freddie Mac, 6.680%
due 12/28/2001; Market value -- $255,751)
(Cost -- $248,000) $ 248,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $10,063,429)(4) $7,627,125
</TABLE>
1. Security is partially segregated by Custodian for open forward foreign
currency contracts.
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 $357,487 in market value or 4.7% of net assets.
3. Non-income producing security.
4. Aggregate cost for Federal income tax purposes is $10,166,970.
ADR -- American Depository Receipts.
GDR -- Global Depository Receipts.
See Notes to Financial Statements.
ING Global / International Mutual Funds Annual Report / October 31, 2000 13
<PAGE> 16
OCTOBER 31, 2000
SCHEDULE OF INVESTMENTS
ING GLOBAL COMMUNICATIONS FUND
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
COMMON STOCK -- 100.0%
BERMUDA -- 1.6%
65,300 Global Crossing Ltd.(1) $ 1,542,712
CANADA -- 1.1%
22,570 Nortel Networks Corp. 1,026,935
FINLAND -- 2.4%
56,850 Nokia Oyj 2,336,542
HONG KONG -- 1.1%
161,920 China Mobile (Hong Kong) Ltd. 1,043,259
JAPAN -- 2.3%
88 NTT DoCoMo, Inc. 2,167,964
NETHERLANDS -- 3.3%
24,000 Equant NV(1) 802,508
60,920 United Pan-Europe Communications NV(1) 1,066,279
64,360 VersaTel Telecom International NV(1) 1,268,323
-----------
3,137,110
SWEDEN -- 2.7%
192,270 Telefonaktiebolaget LM Ericsson AB --
B Shares 2,552,087
UNITED KINGDOM -- 8.4%
52,170 COLT Telecom Group PLC(1) 1,666,575
33,990 Logica PLC 1,006,351
4,200 Logica PLC -- Fully Paid(1) 112,824
61,370 SEMA Group PLC 775,277
1,064,310 Vodafone Group PLC 4,431,521
-----------
7,992,548
UNITED STATES -- 77.1%
105,220 ADC Telecommunications, Inc.(1) 2,249,077
10,240 Aether Systems, Inc.(1) 825,600
67,130 Amdocs Ltd.(1) 4,350,863
35,690 America Online, Inc.(1) 1,799,847
37,330 AT&T Corp. 865,589
19,360 Avanex Corp.(1) 1,966,250
34,150 Avici Systems Inc.(1) 1,481,256
9,610 Broadcom Corp. -- A Shares(1) 2,137,024
34,880 CIENA Corp.(1) 3,666,760
3,210 Cisco Systems, Inc.(1) 172,939
39,320 Comcast Corp. -- A Shares(1) 1,577,715
7,040 Comcast Corp. -- A Shares Special(1) 286,880
40,130 Comverse Technology, Inc.(1) 4,484,528
79,940 Convergys Corp.(1) 3,482,386
12,900 Corning Inc. 986,850
63,540 CSG Systems International, Inc.(1) 2,950,639
86,770 Infonet Services Corp. -- B Shares(1) 564,005
16,060 JDS Uniphase Corp.(1) 1,306,883
15,610 Juniper Networks, Inc.(1) 3,043,950
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
UNITED STATES -- (continued)
51,910 Level 3 Communications, Inc.(1) $ 2,475,458
71,200 Metromedia Fiber Network, Inc. -- A Shares(1) 1,352,800
31,250 Micromuse Inc.(1) 5,302,734
45,390 Motorola, Inc. 1,131,913
22,910 Newport Corp. 2,616,394
71,000 Nextel Communications, Inc. -- A Shares(1) 2,729,062
42,260 Phone.com, Inc.(1) 3,911,691
4,950 PMC-Sierra, Inc.(1) 839,025
76,550 Qwest Communications International Inc.(1) 3,722,244
21,790 Redback Networks Inc.(1) 2,319,273
96,340 RF Micro Devices, Inc.(1) 1,920,779
66,290 Sprint Corp. (PCS Group)(1) 2,527,306
14,160 Sycamore Networks, Inc.(1) 895,620
103,000 Triton Network Systems, Inc.(1) 643,750
33,220 Vitesse Semiconductor Corp.(1) 2,323,324
90,310 World Access, Inc.(1) 440,261
-----------
73,350,675
TOTAL INVESTMENTS -- 100.0%
(Cost -- $120,070,222)(2) $95,149,832
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is $122,507,820.
See Notes to Financial Statements.
14 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 17
ING GLOBAL INFORMATION TECHNOLOGY FUND
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
COMMON STOCK -- 97.9%
CANADA -- 2.3%
87,602 Nortel Networks Corp. $ 3,985,891
GERMANY -- 2.7%
14,169 SAP AG Preferred Shares 2,864,300
24,332 Software AG 1,763,335
------------
4,627,635
IRELAND -- 1.9%
65,405 SmartForce PLC -- Sponsored ADR(1) 3,291,711
JAPAN -- 0.9%
21,000 Sumisho Computer Systems Corp. 1,575,144
NETHERLANDS -- 1.5%
64,970 ASM Lithography Holding NV(1) 1,773,758
46,540 United Pan-Europe Communications NV --
A Shares(1) 814,587
------------
2,588,345
UNITED KINGDOM -- 4.0%
171,192 CMG PLC 2,851,260
82,586 Logica PLC 2,445,147
8,258 Logica PLC -- Fully Paid(1) 221,834
120,556 SEMA Group PLC 1,522,963
------------
7,041,204
UNITED STATES -- 84.6%
62,710 Amdocs Ltd.(1) 4,064,392
82,575 America Online, Inc.(1) 4,164,257
56,858 Art Technology Group, Inc.(1) 3,567,840
105,490 BEA Systems, Inc.(1) 7,568,908
159,621 BroadVision, Inc.(1) 4,748,725
23,000 Brocade Communications Systems, Inc.(1) 5,229,625
62,518 CIENA Corp.(1) 6,572,205
63,582 Cisco Systems, Inc.(1) 3,425,480
36,693 Computer Sciences Corp.(1) 2,311,659
57,409 Convergys Corp.(1) 2,500,880
31,918 Corning Inc. 2,441,727
87,800 EMC Corp.(1) 7,819,688
48,552 i2 Technologies, Inc.(1) 8,253,840
51,497 Informatica Corp.(1) 4,866,466
22,883 Inktomi Corp.(1) 1,451,640
74,771 Intel Corp. 3,364,695
19,492 International Business Machines Corp. 1,919,962
30,488 JDS Uniphase Corp.(1) 2,480,961
108,738 MarchFirst, Inc.(1) 632,040
14,678 McDATA Corp. -- B Shares(1) 1,223,549
76,740 Micron Technology, Inc. 2,666,715
64,844 Microsoft Corp.(1) 4,466,130
168,477 Motorola, Inc. 4,201,395
60,019 Network Appliance, Inc.(1) 7,142,261
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
UNITED STATES -- (continued)
62,414 Network Associates, Inc.(1) $1,201,469
128,000 OPNET Technologies, Inc.(1) 4,472,000
147,492 Oracle Corp.(1) 4,867,236
111,648 Razorfish, Inc. -- A Shares(1) 502,416
120,302 RF Micro Devices, Inc.(1) 2,398,521
79,601 Sapient Corp.(1) 2,830,811
68,624 Siebel Systems, Inc.(1) 7,201,231
34,449 Software.com, Inc.(1) 5,132,901
63,858 Sun Microsystems, Inc.(1) 7,080,256
80,824 Texas Instruments Inc. 3,965,427
58,440 VERITAS Software Corp.(1) 8,240,953
28,799 Yahoo! Inc.(1) 1,688,341
------------
146,666,602
TOTAL COMMON STOCK
(Cost -- $157,825,231) $169,776,532
REPURCHASE AGREEMENT -- 2.1%
$3,567,000 State Street Bank & Trust Co., 6.540%
due 11/1/2000; Proceeds at maturity --
$3,567,648; (Fully collateralized by
Fannie Mae, 6.000% due 11/15/2001; Market
value -- $3,642,464)
(Cost -- $3,567,000) $3,567,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $161,392,231)(2) $173,343,532
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is $161,765,880.
ADR -- American Depository Receipts.
See Notes to Financial Statements.
ING Global / International Mutual Funds Annual Report / October 31, 2000 15
<PAGE> 18
OCTOBER 31, 2000
SCHEDULE OF INVESTMENTS
ING EUROPEAN EQUITY FUND
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
FOREIGN STOCK -- 98.5%
BELGIUM -- 0.5%
756 Electrabel SA $ 163,977
DENMARK -- 0.4%
2,314 Vestas Wind Systems AS 125,173
FINLAND -- 3.3%
25,752 Nokia Oyj 1,058,410
FRANCE -- 14.9%
1,307 Air Liquide SA 154,318
6,995 Alcatel SA 426,292
5,217 Aventis SA -- Paris 375,864
3,075 Axa SA 406,594
3,454 BNP Paribas SA 297,445
1,755 Cap Gemini SA 279,657
4,744 Carrefour SA 318,062
1,865 Groupe Danone 260,511
2,389 Lafarge SA 176,168
3,770 L'Oreal SA 287,591
3,469 Louis Vuitton Moet Hennessy 252,868
3,221 Sanofi-Synthelabo SA 169,267
1,747 Schneider Electric SA 113,648
3,571 STMicroelectronics NV 179,942
3,960 Societe Generale -- A Shares 224,550
711 Suez Lyonnaise des Eaux SA 108,355
3,084 Total Fina Elf SA 440,720
4,765 Vivendi SA 342,087
----------
4,813,939
GERMANY -- 10.0%
1,018 Allianz AG -- Registered Shares 345,574
4,421 Bayer AG 191,484
2,672 Bayerische Hypo-und Vereinsbank AG 146,532
1,903 DaimlerChrysler AG -- Registered Shares 87,666
4,902 Deutsche Bank AG -- Registered Shares 403,029
2,840 Dresdner Bank AG 117,832
5,613 E. On AG 284,979
698 Fresenius AG -- Preferred Shares 171,571
505 Marschollek, Lautenschlaeger
und Partner AG -- Preferred Shares 68,058
1,077 Muenchener Rueckversicherungs-Gesellschaft
AG -- Registered Shares 339,586
2,641 SAP AG 431,809
3,081 Schering AG 171,573
3,744 Siemens AG 476,012
----------
3,235,705
GREECE -- 0.3%
2,763 Alpha Credit Bank SA 101,902
IRELAND -- 0.8%
18,422 Bank of Ireland 139,047
7,993 CRH PLC (London) 122,625
----------
261,672
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
ITALY -- 5.4%
9,870 Assicurazioni Generali S.p.A. $ 324,175
7,202 Banca Fideuram S.p.A. 110,612
35,156 Banca Nazionale del Lavoro --
Ordinary Shares 113,829
18,315 Bipop-Carire S.p.A. 144,682
22,679 ENI S.p.A. 122,641
10,319 San Paolo-IMI S.p.A. 167,056
36,598 Telecom Italia Mobile S.p.A. 310,825
27,734 Telecom Italia S.p.A. 320,875
28,302 UniCredito Italiano S.p.A. 143,933
----------
1,758,628
NETHERLANDS -- 12.9%
18,434 ABN AMRO Holding NV 426,553
9,362 Aegon NV 371,369
1,860 Akzo Nobel NV 84,581
3,366 ASM Lithography Holding NV(1) 91,896
6,095 Elsevier NV 77,750
2,998 Equant NV(1) 100,247
18,890 Fortis (NL) NV 576,402
3,050 Heineken Holding NV -- A Shares 108,578
8,794 Koninklijke Ahold NV 255,143
6,513 Koninklijke (Royal) KPN NV 131,772
2,176 Koninklijke Numico NV 101,625
10,022 Koninklijke (Royal) Philips Electronics NV 393,387
4,865 Libertel NV(1) 63,297
20,671 Royal Dutch Petroleum Co. 1,224,524
3,818 TNT Post Group NV 80,774
1,948 VNU NV 91,637
----------
4,179,535
PORTUGAL -- 0.6%
19,915 Portugal Telecom SA -- Registered Shares 177,239
SPAIN -- 4.0%
20,681 Banco Bilbao Vizcaya Argentaria, SA 275,209
25,786 Banco Santander Central Hispano, SA 249,598
9,296 Endesa SA 151,282
5,536 Iberdrola SA 67,616
21,385 Telefonica SA(1) 407,289
7,744 Union Electrica Fenosa SA 143,025
----------
1,294,019
SWEDEN -- 3.3%
30,348 Nordic Baltic Holding AB 223,790
6,538 Skandia Forsakrings AB 110,598
54,779 Telefonaktiebolaget LM Ericsson AB --
B Shares 727,106
----------
1,061,494
SWITZERLAND -- 11.0%
1,381 ABB Ltd. 122,388
336 Adecco SA -- Registered Shares 232,272
86 Compagnie Financiere Richemont AG --
A Units 239,141
1,359 Credit Suisse Group -- Registered Shares 254,704
283 Nestle SA -- Registered Shares 586,272
339 Novartis AG -- Registered Shares 514,128
68 Roche Holding AG 620,967
127 The Swatch Group AG -- B Shares 168,100
121 Swiss Re -- Registered Shares 238,555
2,726 UBS AG -- Registered Shares 377,495
411 Zurich Financial Services AG 201,119
----------
3,555,141
</TABLE>
16 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 19
ING EUROPEAN EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
UNITED KINGDOM -- 31.1%
8,828 Abbey National PLC $ 121,906
6,678 AstraZeneca Group PLC 313,012
9,415 Bank of Scotland 87,905
10,481 Barclays PLC 300,117
50,970 BG Group PLC 204,270
97,714 BP Amoco PLC 829,321
32,419 British Telecommunications PLC 380,358
22,998 Cable & Wireless PLC 325,594
24,679 CGNU PLC 330,400
6,137 CMG PLC 101,410
5,344 COLT Telecom Group PLC(1) 170,714
38,122 Diageo PLC 360,084
15,664 Glaxo Wellcome PLC 451,259
22,099 Granada Compass PLC(1) 190,608
41,958 HSBC Holdings PLC 598,284
17,696 Invensys PLC 42,269
19,833 J. Sainsbury PLC 111,522
21,352 Kingfisher PLC 127,737
31,888 Lloyds TSB Group PLC 325,047
24,734 Marconi PLC 312,460
27,923 National Grid Group PLC 242,260
6,874 Pearson PLC 184,556
14,785 Prudential PLC 199,013
53,233 Rentokil Initial PLC 122,902
9,705 Reuters Group PLC 189,116
12,520 Royal Bank of Scotland Group PLC 281,239
27,090 ScottishPower PLC 203,564
29,947 SmithKline Beecham PLC 387,012
6,404 Standard Chartered PLC 92,431
58,102 Tesco PLC 221,674
53,320 Unilever PLC 360,986
415,720 Vodafone Group PLC 1,730,954
10,099 WPP Group PLC 135,644
-----------
10,035,628
TOTAL FOREIGN STOCK
(Cost -- $30,304,001) $31,822,462
REPURCHASE AGREEMENT -- 1.5%
$484,000 State Street Bank & Trust Co., 6.540%
due 11/1/2000; Proceeds at maturity --
$484,088; (Fully collateralized by Fannie
Mae, 6.100% due 9/14/2001; Market value
-- $497,149) (Cost -- $484,000) $ 484,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $30,788,001)(2) $32,306,462
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is $31,099,625.
See Notes to Financial Statements.
ING INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
FOREIGN STOCK -- 90.9%
BRAZIL -- 1.1%
8,400 Petroleo Brasileiro S.A. -- Petrobras
-- ADR(1) $ 244,125
14,664 Tele Norte Leste Participacoes S.A.
-- ADR 324,441
-----------
568,566
CHINA -- 0.7%
1,780,000 PetroChina Co. Ltd. -- H Shares 374,300
FINLAND -- 2.3%
25,190 Nokia Oyj(2) 1,035,312
7,230 Sonera Oyj 159,087
-----------
1,194,399
FRANCE -- 8.0%
11,150 Accor SA 450,800
13,210 Alcatel SA 805,050
3,335 Axa SA 440,972
5,260 BNP Paribas SA 452,971
2,260 Castorama Dubois Investissement SA 458,972
5,580 France Telecom SA(2) 582,688
6,735 Total Fina Elf SA 962,467
-----------
4,153,920
GERMANY -- 5.2%
10,448 Deutsche Bank AG -- Registered Shares 859,005
12,570 Deutsche Telekom AG -- Registered Shares 469,323
1,570 Fresenius AG -- Preferred Shares 385,912
1,170 Muenchner Rueckversicherungs-Gesellschaft
AG -- Registered Shares 368,909
5,130 Siemens AG(2) 652,228
-----------
2,735,377
HONG KONG -- 5.7%
440,000 Brilliance China Automotive Holdings Ltd. 141,042
43,000 Cheung Kong (Holdings) Ltd. 475,536
112,500 China Mobile (Hong Kong) Ltd.(1) 724,843
22,700 Hang Seng Bank Ltd. 267,047
142,000 Hong Kong Exchanges & Clearing Ltd. 247,618
90,200 Hutchison Whampoa Ltd. 1,118,956
-----------
2,975,042
HUNGARY -- 0.3%
6,750 Magyar Tavkozlesi Rt -- Sponsored ADR 158,625
ISRAEL -- 0.3%
1,000 Check Point Software Technologies Ltd.(1) 158,375
ITALY -- 2.9%
22,440 Assicurazioni Generali S.p.A. 737,030
34,430 Banca Fideuram S.p.A. 528,794
64,630 Banca Intesa S.p.A. 267,876
-----------
1,533,700
JAPAN -- 20.1%
73,000 Asahi Chemical Industry Co., Ltd. 451,946
10,000 Canon, Inc. 396,556
71,000 Daiwa Securities Group Inc. 786,143
7,200 Fanuc Ltd. 646,213
18,000 Honda Motor Co., Ltd. 621,485
62,000 Kuraray Co., Ltd. 582,013
40,000 Matsushita Electric Industrial Co., Ltd. 1,161,279
76,000 Mitsui Fudosan Co., Ltd. 920,158
24,000 NEC Corp. 457,185
3,100 Nintendo Co., Ltd. 515,862
63 Nippon Telegraph & Telephone Corp. 572,937
8,300 Nissin Food Products Co., Ltd. 217,781
12,000 Pioneer Corp. 371,463
5,300 Sony Corp. 423,262
15,000 Takeda Chemical Industries, Ltd. 987,728
5,100 TDK Corp. 513,783
118,000 The Sakura Bank, Ltd. 859,144
-----------
10,484,938
</TABLE>
ING Global / International Mutual Funds Annual Report / October 31, 2000 17
<PAGE> 20
OCTOBER 31, 2000
SCHEDULE OF INVESTMENTS
ING INTERNATIONAL EQUITY FUND (CONTINUED)
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
MEXICO -- 0.9%
14,400 Coca-Cola Femsa SA -- Sponsored ADR $ 276,300
113,400 Grupo Financiero Banamex
Accival SA -- O Shares(1) 176,549
-----------
452,849
NETHERLANDS -- 5.9%
11,920 Aegon NV 472,839
14,810 Akzo Nobel NV 673,466
10,400 ASM Lithography Holding NV(1) 283,932
21,320 Royal Dutch Petroleum Co. 1,262,970
18,610 TNT Post Group NV 393,715
-----------
3,086,922
RUSSIA -- 0.7%
27,300 Surgutneftegaz -- Sponsored ADR 350,805
SINGAPORE -- 3.8%
44,000 Chartered Semiconductor Manufacturing Ltd.(1) 190,487
55,000 DBS Group Holdings Ltd. 648,533
47,550 Oversea-Chinese Banking Corp. Ltd. 303,366
43,000 Singapore Press Holdings Ltd. 614,811
140,000 Singapore Telecommunications Ltd. 232,071
-----------
1,989,268
SOUTH AFRICA -- 0.8%
11,400 Anglo American Platnium Corp. Ltd. 444,616
SOUTH KOREA -- 0.6%
6,500 Korea Telecom Corp. -- Sponsored ADR 239,688
2,000 Samsung Electronics -- Sponsored GDR(3) 65,250
-----------
304,938
SPAIN -- 2.5%
67,034 Banco Santander Central Hispano SA 648,862
34,170 Telefonica SA(1) 650,787
-----------
1,299,649
SWEDEN -- 3.8%
34,340 Securitas AB -- B Shares 729,982
24,220 Skandia Forsakrings AB 409,710
63,920 Telefonaktiebolaget LM Ericsson -- B Shares 848,439
-----------
1,988,131
SWITZERLAND -- 7.4%
700 Adecco SA -- Registered Shares 483,900
2,390 Credit Suisse Group -- Registered Shares(2) 447,934
370 Nestle SA -- Registered Shares 766,504
690 Novartis AG -- Registered Shares 1,046,455
230 SGS Societe Generale de Surveillance
Holding SA -- B Shares 281,408
230 The Swatch Group AG -- B Shares 304,432
1,050 Zurich Financial Services AG 508,036
-----------
3,838,669
TAIWAN -- 0.4%
25,700 Asustek Computer, Inc. -- GDR 140,707
4,600 Hon Hai Precision Industry Co., Ltd -- GDR(1) 53,015
-----------
193,722
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
UNITED KINGDOM -- 17.4%
38,000 Amvescap PLC $ 849,739
22,000 Barclays PLC 629,957
124,100 BP Amoco PLC 1,053,265
14,000 Glaxo Wellcome PLC 403,321
83,400 HSBC Holdings PLC 1,189,211
34,003 Logica PLC 1,006,736
3,400 Logica PLC -- Fully Paid(1) 91,334
50,000 Shire Pharmaceuticals Group PLC(1) 1,016,434
94,000 Spirent PLC 872,188
290,966 Vodafone Group PLC 1,211,510
54,277 WPP Group PLC 729,019
-----------
9,052,714
VENEZUELA -- 0.1%
4,100 Compania Anonima Nacional
Telefonos de Venezuela -- ADR 77,900
TOTAL FOREIGN STOCK
(Cost -- $50,454,123) $47,417,425
REPURCHASE AGREEMENT -- 9.1%
$4,729,000 State Street Bank & Trust Co., 6.540%
due 11/1/2000; Proceeds at maturity --
$4,729,859; (Fully collateralized by Fannie
Mae, 6.000% due 11/15/2001; Market value --
$4,827,670) (Cost -- $4,729,000) $ 4,729,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $55,183,123)(4) $52,146,425
</TABLE>
1. Non-income producing security.
2. Security is partially segregated by Custodian for open forward foreign
currency contracts.
3. Security is exempt from registration under Rule 144a of the Securities Act
of 1933. This security may be resold in transactions that are exempt from
registration, normally to qualified institutional buyers. Rule 144a
securities amounted to $65,250 in market value or 0.1% of net assets.
4. Aggregate cost for Federal income tax purposes is $55,356,582.
ADR -- American Depository Receipts.
GDR -- Global Depository Receipts.
See Notes to Financial Statements.
18 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 21
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
COMMON STOCK -- 99.5%
AUSTRALIA -- 2.2%
560,000 Foster's Brewing Group Ltd. $ 1,268,017
FINLAND -- 2.9%
41,000 Nokia Oyj 1,685,105
FRANCE -- 6.7%
33,500 L'Oreal SA 2,555,514
17,530 Louis Vuitton Moet Hennessy 1,277,825
-----------
3,833,339
GERMANY -- 2.6%
10,000 Adidas-Salomon AG 459,823
21,000 Volkswagen AG 1,048,396
-----------
1,508,219
JAPAN -- 7.0%
15,000 Canon Inc. 594,835
16,000 Fuji Photo Film Co., Ltd. 593,461
31,000 Honda Motor Co., Ltd. 1,070,336
14,500 Sony Corp. 1,157,981
14,000 Toyota Motor Corp. 559,026
-----------
3,975,639
NETHERLANDS -- 10.5%
12,760 Gucci Group NV -- NY Registered Shares 1,247,290
54,000 Heineken NV 2,929,305
36,000 Unilever NV -- Share Certificates 1,803,353
-----------
5,979,948
SWEDEN -- 1.5%
64,000 Telefonaktiebolaget LM Ericsson AB
-- B Shares 849,501
SWITZERLAND -- 2.6%
720 Nestle SA -- Registered Shares 1,491,574
UNITED STATES -- 63.5%
8,800 America Online, Inc.(1) 443,784
32,500 American Express Co. 1,950,000
19,000 Cisco Systems, Inc.(1) 1,023,625
45,000 The Coca-Cola Co. 2,716,875
31,500 Colgate-Palmolive Co. 1,850,940
29,000 Compaq Computer Corp. 881,890
60,000 Dell Computer Corp.(1) 1,770,000
44,000 The Walt Disney Co. 1,575,750
45,000 Ford Motor Co. 1,175,625
53,000 The Gillette Co. 1,848,375
63,000 Intel Corp. 2,835,000
21,000 Johnson & Johnson 1,934,625
79,000 McDonald's Corp. 2,449,000
51,000 Microsoft Corp.(1) 3,512,625
42,000 Motorola, Inc. 1,047,375
36,000 PepsiCo, Inc. 1,743,750
11,500 Philip Morris Cos. Inc. 421,187
8,000 The Procter & Gamble Co. 571,500
16,000 Starbucks Corp.(1) 715,000
9,500 Texas Instruments Inc. 466,094
37,000 Time Warner Inc. 2,808,670
19,000 Wm. Wrigley Jr. Co. 1,504,562
18,000 Yahoo! Inc.(1) 1,055,250
-----------
36,301,502
TOTAL COMMON STOCK -- 99.5%
(Cost -- $53,434,536) $56,892,844
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL
AMOUNT VALUE
------ -----
<S> <C>
REPURCHASE AGREEMENT -- 0.5%
$267,000 State Street Bank & Trust Co., 6.540%
due 11/1/2000; Proceeds at maturity
-- $267,049; (Fully collateralized by
Fannie Mae, 6.230% due 8/20/2001; Market
value -- $272,651) (Cost -- $267,000) $ 267,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $53,701,536)(2) $57,159,844
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is $54,250,692.
See Notes to Financial Statements.
ING Global / International Mutual Funds Annual Report / October 31, 2000 19
<PAGE> 22
OCTOBER 31, 2000
SCHEDULE OF INVESTMENTS
ING INTERNATIONAL BOND FUND
<TABLE>
<CAPTION>
SHARES
PRINCIPAL
AMOUNT RATINGS(1) VALUE
------ ---------- -----
<S> <C> <C>
FOREIGN BONDS -- 57.2%
AUSTRALIA -- 0.5%
230,000 Queensland Treasury Corp.,
Series 05G,
6.500% due 6/14/2005(2)* AAA/Aaa $ 119,447
DENMARK -- 3.8%
7,270,000 Kingdom of Denmark,
6.000% due 11/15/2002(3)* AAA/Aaa 835,901
FRANCE -- 5.9%
3,200,000 France O.A.T. Principal,
Zero Coupon due 10/25/2019(4) NA/NA 888,695
500,000 Government of France,
5.250% due 4/25/2008(4) AAA/Aaa 422,387
-----------
1,311,082
GERMANY -- 27.1%
Bundesobligation:
1,263,000 Series 121,
4.750% due 11/20/2001(4) AAA/Aaa 1,066,183
860,000 Series 132,
4.125% due 8/27/2004(4) NA/Aaa 704,371
Bundesrepublic Deutschland:
894,000 Series 97,
6.000% due 7/4/2007(4)* AAA/Aaa 790,186
605,000 Series 97,
6.500% due 7/4/2027(4) AAA/Aaa 569,975
1,630,000 Series 98,
5.625% due 1/4/2028(4)* AAA/Aaa 1,376,476
Bundesschatzanweisungen:
1,760,000 Series 98,
3.000% due 12/15/2000(4) NA/Aaa 1,488,345
-----------
5,995,536
JAPAN -- 9.3%
150,000 Development Bank of Japan,
9.125% due 1/31/2005(5)* AAA/Aa1 237,970
240,000 Japan Bank for International
Coop., 8.000% due 2/5/2007(5)* AAA/Aa1 376,829
280,000 Japan Finance Corp. Municipal
Enterprise, 6.375% due 3/9/2004(5)* AAA/Aa1 405,297
260,000 Kansai International Airport Co.,
7.375% due 9/24/2007(5)* NR/NR 398,776
400,000 Kobe City,
9.500% due 10/20/2004(5) NR/NR 641,237
-----------
2,060,109
NETHERLANDS -- 6.6%
916,000 Netherlands Government,
5.250% due 7/15/2008(4)* NR/Aaa 774,677
450,000 Bank Nederlandse Gemeenten,
7.750% due 8/13/2003(5) AAA/Aaa 677,325
-----------
1,452,002
SWEDEN -- 4.0%
8,700,000 Swedish Government, Series 1039,
5.500% due 4/12/2002(6)* AAA/Aaa 880,166
TOTAL FOREIGN BONDS
(Cost -- $14,685,933) $12,654,243
</TABLE>
<TABLE>
<CAPTION>
SHARES
PRINCIPAL
AMOUNT RATINGS(1) VALUE
------ ---------- -----
<S> <C> <C>
U.S. GOVERNMENT AGENCIES & OBLIGATIONS -- 33.3%
715,000 Fannie Mae, Series E,
6.875% due 6/7/2002(5) NR/Aaa $ 1,048,784
U.S. Treasury Bonds:
730,000 7.250% due 5/15/2016(7) NR/NR 821,685
630,000 7.500% due 11/15/2016(7) NR/NR 725,816
U.S. Treasury Inflation
Protected Bonds:
2,212,000 3.875% due 1/15/2009(7)* NR/NR 2,331,448
2,300,000 4.250% due 1/15/2010(7)* NR/NR 2,433,860
TOTAL U.S. GOVERNMENT AGENCIES & OBLIGATIONS
(Cost -- $7,288,311) $ 7,361,593
SUPRA-NATIONAL ENTITY -- 7.6%
700,000 European Investment Bank,
7.000% due 12/8/2003(5) AAA/Aaa 1,038,448
430,000 KFW International Finance,
7.625% due 12/30/2003(5) AAA/Aaa 648,946
TOTAL SUPRA-NATIONAL ENTITY
(Cost -- $1,671,105) $ 1,687,394
REPURCHASE AGREEMENT -- 1.9%
$413,000 State Street Bank & Trust Co.,
6.540% due 11/1/00; Proceeds at
maturity -- $413,075; (Fully
collateralized by Fannie Mae,
5.940% due 9/4/2001; Market
value -- $421,914)
(Cost -- $413,000) $ 413,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $24,058,349)(8) $22,116,230
</TABLE>
* Security is partially segregated by Custodian for open forward foreign
currency contracts.
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc. (unaudited).
2. Security is denominated in Australian Dollar.
3. Security is denominated in Danish Kroner.
4. Security is denominated in EURO.
5. Security is denominated in British Pound.
6. Security is denominated in Swedish Kronor.
7. Security is denominated in United States Dollar.
8. Aggregate cost for Federal income tax purposes is $24,222,475.
See Notes to Financial Statements.
20 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 23
OCTOBER 31, 2000 (UNAUDITED)
BOND RATINGS
All ratings are by Standard & Poor's Rating Group (Standard & Poor's) and
Moody's Investors Service, Inc. (Moody's). The definitions of the applicable
rating symbol are set forth below:
Standard & Poor's applies indicators "+" and " - " to its rating categories. The
indicators show relative standing within the major rating categories.
AAA - Highest grade debts in which capacity to pay interest and repay
principal is extremely strong.
AA - High-grade debts having a very strong capacity to pay interest and
repay principal.
A - Upper medium grade debts that have a strong capacity to pay interest
and repay principal although they are somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions
than debts in higher rated categories.
BBB - Debts having an adequate capacity to pay interest and repay
principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay interest and repay
principal for debts in this category than in higher rated categories.
BB, B, - Debts rated in these categories are predominantly speculative with
CCC, CC respect to capacity to pay interest and repay principal in accordance
with terms of the obligations; BB indicates the highest grade and CC
the lowest within the speculative rating categories.
Moody's applies numerical indicators 1, 2 and 3 to rating categories. The
modifier 1 indicates that the security is in the higher end of its rating
category; the modifier 2 indicates a mid-range ranking; and modifier 3 indicates
a ranking toward the lower end of the category.
Aaa - Debts judged to be the best quality and carry the smallest degree of
investment risk.
Aa - Debts judged to be of high quality by all standards.
A - Debts possess many favorable investment attributes and are to be
considered as "upper medium grade obligations."
Baa - Debts are considered to be medium grade obligations, they are neither
highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over
any great length of time.
Ba - Debts rated in this category are judged to have speculative elements,
their future cannot be considered as well assured.
B - Debts rated in this category generally lack characteristics of the
desirable investment.
Caa - Debts in this category are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to
principal or interest.
NR - Indicates that the bond is not rated by Standard & Poor's or Moody's.
ING Global / International Mutual Funds Annual Report / October 31, 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: 10/31/00 10/31/00 10/31/00 10/31/00
------------------------------------------------------------------------------------------------------------------------------------
<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 0.00(6) (0.04) (0.04) (0.02)
Net realized and unrealized loss(2) (3.22) (3.21) (3.22) (3.23)
------ ------ ------ ------
Total from investment operations (3.22) (3.25) (3.26) (3.25)
------ ------ ------ ------
Distributions paid from investment income -- -- -- --
------ ------ ------ ------
Net asset value per share, end of period $6.78 $6.75 $6.74 $6.75
NET ASSETS, END OF PERIOD (in thousands) $7,227 $207 $94 $111
Total investment return at net asset value(3,4) (32.20)% (32.50)% (32.60)% (32.50)%
Ratios to average net assets:(5)
Net expenses 1.73% 2.38% 2.38% 2.41%
Gross expenses 4.08% 4.32% 4.32% 4.35%
Net investment loss (0.01)% (0.64)% (0.59)% (0.85)%
Portfolio turnover rate(4) 51.58% 51.58% 51.58% 51.58%
</TABLE>
1. Commenced operations on March 1, 2000. 2. Includes gains and losses on
foreign currency transactions. 3. Total return assumes reinvestment of all
dividend and capital gain distributions, if any, and does not reflect the
deduction of the applicable sales load with respect to Class A shares or the
applicable contingent deferred sales load 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 (31.15)% for the period ended 10/31/00. Total returns would be
lower if part of the Fund's expenses were not waived or reimbursed. 4. Not
annualized. 5. Annualized. 6. 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: 10/31/00 10/31/00 10/31/00 10/31/00
------------------------------------------------------------------------------------------------------------------------------------
<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 (0.06) (0.09) (0.09) (0.08)
Net realized and unrealized loss(2) (2.64) (2.64) (2.63) (2.64)
------- ------- ------ ------
Total from investment operations (2.70) (2.73) (2.72) (2.72)
------- ------- ------ ------
Distributions paid from investment income -- -- -- --
------- ------- ------ ------
Net asset value per share, end of period $7.30 $7.27 $7.28 $7.28
NET ASSETS, END OF PERIOD (in thousands) $55,459 $31,035 $7,603 $1,728
Total investment return at net asset value(3,4) (27.00)% (27.30)% (27.20)% (27.20)%
Ratios to average net assets:(5)
Net expenses 1.37% 2.01% 2.01% 1.99%
Gross expenses 2.56% 2.81% 2.81% 2.79%
Net investment loss (1.02)% (1.67)% (1.68)% (1.70)%
Portfolio turnover rate(4) 60.13% 60.13% 60.13% 60.13%
</TABLE>
1. Commenced operations on March 1, 2000. 2. Includes gains and losses on
foreign currency transactions. 3. Total return assumes reinvestment of all
dividend and capital gain distributions, if any, and does not reflect the
deduction of the applicable sales load with respect to Class A shares or the
applicable contingent deferred sales load 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 (25.74)% for the period ended 10/31/00. Total returns would be
lower if part of the Fund's expenses were not waived or reimbursed. 4. Not
annualized. 5. Annualized.
22 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 25
FINANCIAL HIGHLIGHTS
ING GLOBAL INFORMATION TECHNOLOGY 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: 10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <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
From investment operations:
Net investment loss (0.33) (0.13) (0.41) (0.08) (0.42) (0.05)
Net realized and unrealized gain(3) 10.41 7.51 10.30 7.36 10.30 7.33
-------- ------- ------- ------ ------- ------
Total from investment operations 10.08 7.38 9.89 7.28 9.88 7.28
-------- ------- ------- ------ ------- ------
Distributions paid from capital gain (0.84) -- (0.84) -- (0.84) --
-------- ------- ------- ------ ------- ------
Net asset value per share, end of period $26.62 $17.38 $26.33 $17.28 $26.32 $17.28
NET ASSETS, END OF PERIOD (in thousands) $108,763 $54,798 $37,915 $5,964 $18,486 $2,102
Total investment return at net asset value(4) 58.61% 73.80%(5) 57.82% 72.80%(5) 57.77% 72.80%(5)
Ratios to average net assets:
Net expenses 1.53% 1.57%(6) 2.17% 2.25%(6) 2.17% 2.24%(6)
Gross expenses 2.65% 2.95%(6) 2.89% 3.22%(6) 2.89% 3.20%(6)
Net investment loss (1.30)% (1.29)%(6) (1.94)% (2.04)%(6) (1.94)% (2.05)%(6)
Portfolio turnover rate 76.74% 56.88%(5) 76.74% 56.88%(5) 76.74% 56.88%(5)
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class X Shares(2)
throughout each period: 10/31/00 10/31/99
-----------------------------------------------------------------------------
<S> <C> <C>
Net asset value per share, beginning of period $17.29 $12.42
From investment operations:
Net investment loss (0.46) (0.13)
Net realized and unrealized gain(3) 10.34 5.00
------ ------
Total from investment operations 9.88 4.87
------ ------
Distributions paid from capital gain (0.84) --
------ ------
Net asset value per share, end of period $26.33 $17.29
NET ASSETS, END OF PERIOD (in thousands) $8,209 $2,545
Total investment return at net asset value(4) 57.73% 39.21%(5)
Ratios to average net assets:
Net expenses 2.18% 2.25%(6)
Gross expenses 2.89% 3.22%(6)
Net investment loss (1.94)% (2.02)%(6)
Portfolio turnover rate 76.74% 56.88%(5)
</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. 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 load with respect to Class A shares or the
applicable contingent deferred sales load 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 60.89% for the year ended 10/31/00 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. 5. Not annualized. 6.
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)
outstanding throughout each period: 10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
-------------------------------------------------------------------------------------------------------------------------------
<S> <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
From investment operations(3):
Net investment income (loss) (0.01) 0.04 (0.08) 0.00(8) (0.06) (0.01)
Net realized and unrealized gain(4) 0.34 0.91 0.33 0.89 0.27 0.90
------- ------- ------ ---- ---- ---
Total from investment operations 0.33 0.95 0.25 0.89 0.21 0.89
------- ------- ------ ---- ---- ---
Distributions paid from:
Investment income (0.05) -- (0.03) -- (0.05) --
Capital gain (0.28) -- (0.28) -- (0.28) --
------- ------- ------ ---- ---- ---
Total distributions (0.33) -- (0.31) -- (0.33) --
------- ------- ------ ---- ---- ---
Net asset value per share, end of period $10.95 $10.95 $10.83 $10.89 $10.77 $10.89
NET ASSETS, END OF PERIOD (in thousands) $31,985 $28,746 $1,117 $849 $188 $62
Total investment return at net asset value(5) 2.93% 9.50%(6) 2.14% 8.90%(6) 1.76% 8.90%(6)
Ratios to average net assets:
Net expenses 1.63% 1.61%(7) 2.28% 2.27%(7) 2.28% 2.26%(7)
Gross expenses 2.83% 3.06%(7) 3.08% 3.35%(7) 3.08% 3.34%(7)
Net investment income (loss) (0.09)% 0.48%(7) (0.75)% (0.08)%(7) (0.68)% (0.15)%(7)
Portfolio turnover rate 60.93% 62.91%(6) 60.93% 62.91%(6) 60.93% 62.91%(6)
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest Class X Shares(2)
outstanding throughout each period: 10/31/00 10/31/99
------------------------------------------------------------------------
<S> <C> <C>
Net asset value per share, beginning of period $10.89 $10.53
From investment operations(3):
Net investment income (loss) (0.07) 0.01
Net realized and unrealized gain(4) 0.33 0.35
------ ------
Total from investment operations 0.26 0.36
------ ------
Distributions paid from:
Investment income (0.02) --
Capital gain (0.28) --
------ ------
Total distributions (0.30) --
------ ------
Net asset value per share, end of period $10.85 $10.89
NET ASSETS, END OF PERIOD (in thousands) $845 $707
Total investment return at net asset value(5) 2.27% 3.42%(6)
Ratios to average net assets:
Net expenses 2.28% 2.26%(7)
Gross expenses 3.08% 3.35%(7)
Net investment income (loss) (0.62)% 0.11%(7)
Portfolio turnover rate 60.93% 62.91%(6)
</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. Per share calculation for the
year ended October 31, 2000 is based on average number of shares outstanding
during the year. 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 load with respect to Class A shares or the applicable contingent deferred
sales load 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 4.31% for the year ended 10/31/00 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
$0.01.
ING Global / International Mutual Funds Annual Report / October 31, 2000 23
<PAGE> 26
FINANCIAL HIGHLIGHTS
ING INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
For a share of beneficial interest Class A Shares(1) Class B Shares(1) Class C Shares(1)
outstanding throughout each period: 10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------------------------
<S> <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
From investment operations(4):
Net investment income (loss) (0.01) 0.04 (0.07) (0.01) (0.06) (0.01)
Net realized and unrealized gain (loss)(5) (0.43) 1.78 (0.45) 1.77 (0.46) 1.77
------- ------ ------ ---- ------ ----
Total from investment operations (0.44) 1.82 (0.52) 1.76 (0.52) 1.76
------- ------ ------ ---- ------ ----
Distributions paid from:
Investment income (0.06) -- (0.07) -- (0.09) --
Capital gain (0.50) -- (0.50) -- (0.50) --
------- ------ ------ ---- ------ ----
Total distributions (0.56) -- (0.57) -- (0.59) --
------- ------ ------ ---- ------ ----
Net asset value per share, end of period $10.82 $11.82 $10.67 $11.76 $10.65 $11.76
NET ASSETS, END OF PERIOD (in thousands) $48,484 $32,106 $2,167 $680 $2,110 $417
Total investment return at net asset value(6) (4.43)% 18.20%(7) (5.15)% 17.60%(7) (5.19)% 17.60%(7)
Ratios to average net assets:
Net expenses 1.60% 1.59%(8) 2.25% 2.23%(8) 2.25% 2.20%(8)
Gross expenses 2.83% 3.04%(8) 3.08% 3.30%(8) 3.08% 3.39%(8)
Net investment income (loss) (0.14)% 0.44%(8) (0.76)% (0.32)%(8) (0.76)% (0.59)%(8)
Portfolio turnover rate 132.05% 105.44%(7) 132.05% 105.44%(7) 132.05% 105.44%(7)
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest Class I Shares(2) Class X Shares(3)
outstanding throughout each period: 10/31/00 10/31/99 10/31/00 10/31/99
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period $11.82 $11.29 $11.76 $10.24
From investment operations(4):
Net investment income (loss) 0.05 0.00(9) (0.08) (0.01)
Net realized and unrealized gain (loss)(5) (0.42) 0.53 (0.41) 1.53
------ ------ ------ ------
Total from investment operations (0.37) 0.53 (0.49) 1.52
------ ------ ------ ------
Distributions paid from:
Investment income (0.12) -- (0.06) --
Capital gain (0.50) -- (0.50) --
------ ------ ------ ------
Total distributions (0.62) -- (0.56) --
------ ------ ------ ------
Net asset value per share, end of period $10.83 $11.82 $10.71 $11.76
NET ASSETS, END OF PERIOD (in thousands) $113 $89 $665 $347
Total investment return at net asset value(6) (3.88)% 4.69%(7) (4.91)% 14.84%(7)
Ratios to average net assets:
Net expenses 1.05% 1.04%(8) 2.25% 2.23%(8)
Gross expenses 1.83% 2.63%(8) 3.08% 3.32%(8)
Net investment income (loss) 0.43% (0.03)%(8) (0.79)% (0.24)%(8)
Portfolio turnover rate 132.05% 105.44%(7) 132.05% 105.44%(7)
</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. Per share calculation for the year ended
October 31, 2000 is based on average number of shares outstanding during the
year. 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 load with
respect to Class A shares or the applicable contingent deferred sales load with
respect to Class B, C, and X shares. Total return for Class X shares does not
include the 2.00% bonus shares paid by the Distributor. If the effect of bonus
shares was included, total return for Class X shares would have been (3.01)% for
the year ended 10/31/00 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 Class A Shares(1) Class B Shares(1) Class C Shares(1)
outstanding throughout each period: 10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
---------------------------------------------------------------------------------------------------------------------------------
<S> <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
From investment operations:
Net investment loss (0.06) (0.02) (0.12) (0.04) (0.11) (0.06)
Net realized and unrealized gain(5) 0.62 1.59 0.60 1.54 0.59 1.57
------- ------- ------ ------ ------- ------
Total from investment operations 0.56 1.57 0.48 1.50 0.48 1.51
------- ------- ------ ------ ------- ------
Distributions paid from capital gain (0.16) -- (0.16) -- (0.16) --
------- ------- ------ ------ ------- ------
Net asset value per share, end of period $11.97 $11.57 $11.82 $11.50 $11.83 $11.51
NET ASSETS, END OF PERIOD (in thousands) $36,015 $35,376 $5,119 $2,841 $13,786 $7,548
Total investment return at net asset value(6) 4.81% 15.70%(7) 4.13% 15.00%(7) 4.13% 15.10%(7)
Ratios to average net assets:
Net expenses 1.49% 1.48%(8) 2.13% 2.14%(8) 2.13% 2.13%(8)
Gross expenses 2.49% 2.68%(8) 2.73% 2.93%(8) 2.73% 2.93%(8)
Net investment loss (0.50)% (0.18)%(8) (1.12)% (0.97)%(8) (1.12)% (0.78)%(8)
Portfolio turnover rate 42.35% 11.09%(7) 42.35% 11.09%(7) 42.35% 11.09%(7)
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest Class I Shares(2) Class X Shares(3)
outstanding throughout each period: 10/31/00(4) 10/31/99 10/31/00 10/31/99
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period N/A $11.34 $11.52 $10.76
From investment operations:
Net investment loss N/A 0.00(9) (0.13) (0.05)
Net realized and unrealized gain(5) N/A 0.24 0.60 0.81
------- ------ ----- ------
Total from investment operations N/A 0.24 0.47 0.76
------- ------ ----- ------
Distributions paid from capital gain -- -- (0.16) --
------- ------ ----- ------
Net asset value per share, end of period N/A $11.58 $11.83 $11.52
NET ASSETS, END OF PERIOD (in thousands) N/A $461 $2,878 $2,316
Total investment return at net asset value(6) N/A 2.12%(7) 4.04% 7.06%(7)
Ratios to average net assets:
Net expenses N/A 0.96%(8) 2.14% 2.14%(8)
Gross expenses N/A 1.68%(8) 2.74% 2.93%(8)
Net investment loss N/A (0.12)%(8) (1.15)% (0.87)%(8)
Portfolio turnover rate N/A 11.09%(7) 42.35% 11.09%(7)
</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. Class I shares were fully redeemed on December 29, 1999.
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 load with respect to
Class A shares or the applicable contingent deferred sales load with respect to
Class B, C, and X shares. Total return for Class X shares does not include the
2.00% bonus shares paid by the Distributor. If the effect of bonus shares was
included, total return for Class X shares would have been 6.12% for the year
ended 10/31/00 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. 7. Not
annualized. 8. Annualized. 9. Amount represents less than $0.01.
24 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 27
FINANCIAL HIGHLIGHTS
ING INTERNATIONAL BOND FUND
<TABLE>
<CAPTION>
For a share of beneficial interest Class A Shares(1) Class B Shares(1) Class C Shares(1)
outstanding throughout each period: 10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <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
From investment operations(5):
Net investment income 0.25 0.20 0.20 0.18 0.15 0.17
Net realized and unrealized loss(6) (0.92) (1.21) (0.93) (1.25) (0.88) (1.23)
------- ------- ---- ---- --- ---
Total from investment operations (0.67) (1.01) (0.73) (1.07) (0.73) (1.06)
------- ------- ---- ---- --- ---
Distributions paid from:
Investment income -- -- -- -- -- --
Return of capital (0.20) (0.21) (0.16) (0.15) (0.16) (0.15)
------- ------- ---- ---- --- ---
Total distributions (0.20) (0.21) (0.16) (0.15) (0.16) (0.15)
------- ------- ---- ---- --- ---
Net asset value per share, end of period $7.91 $8.78 $7.89 $8.78 $7.90 $8.79
NET ASSETS, END OF PERIOD (in thousands) $21,363 $23,630 $418 $520 $39 $14
Total investment return at net asset value(7) (7.67)% (10.16)%(8) (8.38)% (10.71)%(8) (8.37)% (10.60)%(8)
Ratios to average net assets:
Net expenses 1.51% 1.48%(9) 2.16% 2.12%(9) 2.17% 2.13%(9)
Gross expenses 2.81% 2.78%(9) 3.06% 3.01%(9) 3.06% 3.02%(9)
Net investment income 3.01% 2.51%(9) 2.33% 2.26%(9) 2.32% 2.20%(9)
Portfolio turnover rate 151.28% 140.92%(8) 151.28% 140.92%(8) 151.28% 140.92%(8)
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest Class I Shares(2) Class X Shares(3)
outstanding throughout each period: 10/31/00(4) 10/31/99 10/31/00 10/31/99
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value per share, beginning of period N/A $8.97 $8.78 $9.87
From investment operations(5):
Net investment income N/A 0.09 0.20 0.16
Net realized and unrealized loss(6) N/A (0.21) (0.93) (1.11)
------- ------ ----- -----
Total from investment operations N/A (0.12) (0.73) (0.95)
------- ------ ----- -----
Distributions paid from:
Investment income N/A -- -- --
Return of capital N/A (0.09) (0.16) (0.14)
------- ------ ----- -----
Total distributions N/A (0.09) (0.16) (0.14)
------- ------ ----- -----
Net asset value per share, end of period N/A $8.76 $7.89 $8.78
NET ASSETS, END OF PERIOD (in thousands) N/A $5 $548 $736
Total investment return at net asset value(7) N/A (1.35)%(8) (8.38)% (9.64)%(8)
Ratios to average net assets:
Net expenses N/A 1.03%(9) 2.17% 2.12%(9)
Gross expenses N/A 1.81%(9) 3.06% 3.01%(9)
Net investment income N/A 3.84%(9) 2.36% 2.26%(9)
Portfolio turnover rate N/A 140.92%(8) 151.28% 140.92%(8)
</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. Class I shares were fully redeemed on September 1, 2000.
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 load with respect to Class A shares or the applicable contingent deferred
sales load with respect to Class B, C, and X shares. Total return for Class X
shares does not include the 2.00% bonus shares paid by the Distributor. If the
effect of bonus shares was included, total return for Class X shares would have
been (6.55)% for the year ended 10/31/00 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 Annual Report / October 31, 2000 25
<PAGE> 28
OCTOBER 31, 2000
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 $9,815,429 $120,070,222 $157,825,231 $30,304,001
---------- ------------ ------------ -----------
Investments in securities, at value $7,379,125 $95,149,832 $169,776,532 $31,822,462
Repurchase agreements, at value 248,000 -- 3,567,000 484,000
Cash 59,971 -- -- 23,194
Foreign currency, at value 1,740 11 -- 3,950
Receivable for investment securities sold 9,570 3,719,503 119,209 279,263
Receivable for fund shares sold 1,606 233,311 643,796 1,894,957
Receivable for open foreign currency contracts (Note 6) -- -- -- 1,362
Dividend and interest receivable 3,798 13,992 15,466 68,208
Prepaid expenses 1,087 3,774 10,298 6,632
---------- ------------ ------------ -----------
Total Assets 7,704,897 99,120,423 174,132,301 34,584,028
LIABILITIES:
Payable for investment securities purchased 9,509 1,413,138 213,300 390,424
Payable to bank -- 1,314,556 44 --
Payable for fund shares redeemed 4,724 298,780 220,916 --
Payable for open foreign currency contracts (Note 6) 5,371 -- -- 100
Management fee payable (Note 3) 2,043 21,348 93,433 23,977
Distribution fee payable (Note 3) 895 31,843 51,554 3,859
Dividend payable -- -- -- --
Other accrued expenses 43,113 214,965 179,719 30,490
---------- ------------ ------------ -----------
Total Liabilities 65,655 3,294,630 758,966 448,850
NET ASSETS $7,639,242 $95,825,793 $173,373,335 $34,135,178
Composition of Net Assets:
Par value of shares of beneficial interest $1,128 $13,144 $6,540 $3,121
Capital paid in excess of par value 11,130,930 129,044,465 112,603,146 31,508,321
Accumulated net investment income (loss) 3,225 -- -- (1,262)
Accumulated net realized gain (loss) (1,054,281) (8,310,926) 48,812,646 1,111,469
Net unrealized appreciation (depreciation)
of investments and foreign currency (2,441,760) (24,920,890) 11,951,003 1,513,529
NET ASSETS $7,639,242 $95,825,793 $173,373,335 $34,135,178
Class A Shares
Net Assets $7,227,124 $55,459,229 $108,763,113 $31,984,625
Shares Outstanding 1,066,481 7,592,927 4,085,470 2,921,965
Net Asset Value Per Share
(and redemption price) $6.78 $7.30 $26.62 $10.95
Maximum Public Offering Price $7.19(1) $7.75(1) $28.24(1) $11.62(1)
Class B Shares
Net Assets $207,015 $31,035,339 $37,915,362 $1,117,406
Shares Outstanding 30,659 4,269,680 1,439,839 103,204
Net Asset Value Per Share(3) $6.75 $7.27 $26.33 $10.83
Class C Shares
Net Assets $93,644 $7,603,343 $18,486,215 $188,223
Shares Outstanding 13,886 1,043,806 702,394 17,475
Net Asset Value Per Share(4) $6.74 $7.28 $26.32 $10.77
Class I Shares
Net Assets -- -- -- --
Shares Outstanding -- -- -- --
Net Asset Value Per Share
(and redemption price) -- -- -- --
Class X Shares
Net Assets $111,459 $1,727,882 $8,208,645 $844,924
Shares Outstanding 16,519 237,281 311,818 77,908
Net Asset Value Per Share(3) $6.75 $7.28 $26.33 $10.85
</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 $50,454,123 $53,434,536 $23,645,349
----------- ----------- -----------
Investments in securities, at value $47,417,425 $56,892,844 $21,703,230
Repurchase agreements, at value 4,729,000 267,000 413,000
Cash 44,062 91 28,185
Foreign currency, at value -- -- 85,406
Receivable for investment securities sold 119,639 579,863 --
Receivable for fund shares sold 1,542,782 76,725 --
Receivable for open foreign currency contracts (Note 6) -- -- 397,432
Dividend and interest receivable 65,924 84,449 580,515
Prepaid expenses 7,812 7,951 6,820
----------- ----------- -----------
TOTAL ASSETS 53,926,644 57,908,923 23,214,588
LIABILITIES:
Payable for investment securities purchased 234,785 -- 461,501
Payable to bank -- -- --
Payable for fund shares redeemed 16,274 2,832 --
Payable for open foreign currency contracts (Note 6) 29,526 -- 332,716
Management fee payable (Note 3) 26,714 23,345 9,508
Distribution fee payable (Note 3) 6,993 16,225 2,458
Dividend payable -- -- 48
Other accrued expenses 72,348 67,667 40,607
----------- ----------- -----------
Total Liabilities 386,640 110,069 846,838
NET ASSETS $53,540,004 $57,798,854 $22,367,750
Composition of Net Assets:
Par value of shares of beneficial interest $4,953 $4,849 $2,830
Capital paid in excess of par value 54,772,062 51,184,505 25,314,534
Accumulated net investment income (loss) 26,658 -- (152,836)
Accumulated net realized gain (loss) 1,806,065 3,153,166 (886,765)
Net unrealized appreciation (depreciation)
of investments and foreign currency (3,069,734) 3,456,334 (1,910,013)
NET ASSETS $53,540,004 $57,798,854 $22,367,750
Class A Shares
Net Assets $48,484,010 $36,015,207 $21,363,018
Shares Outstanding 4,479,526 3,007,912 2,702,379
Net Asset Value Per Share
(and redemption price) $10.82 $11.97 $7.91
Maximum Public Offering Price $11.48(1) $12.70(1) $8.30(2)
Class B Shares
Net Assets $2,167,407 $5,119,471 $417,598
Shares Outstanding 203,092 432,956 52,933
Net Asset Value Per Share(3) $10.67 $11.82 $7.89
Class C Shares
Net Assets $2,109,774 $13,785,845 $39,045
Shares Outstanding 198,031 1,165,252 4,942
Net Asset Value Per Share(4) $10.65 $11.83 $7.90
Class I Shares
Net Assets $113,385 -- --
Shares Outstanding 10,472 -- --
Net Asset Value Per Share
(and redemption price) $10.83 -- --
Class X Shares
Net Assets $665,428 $2,878,331 $548,089
Shares Outstanding 62,160 243,285 69,423
Net Asset Value Per Share(3) $10.71 $11.83 $7.89
</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 Annual Report / October 31, 2000
<PAGE> 29
FOR THE PERIOD ENDED OCTOBER 31, 2000
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 $25,772 $145,669 $285,827 $12,192 $167,367
Dividend 84,919 116,685 83,882 576,713 670,983
Less: foreign withholding tax (5,714) (8,276) (4,239) (65,374) (70,860)
------- ------- ------- ------- -------
Total income 104,977 254,078 365,470 523,531 767,490
EXPENSES:
Management fees (Note 3) 76,036 735,149 1,973,710 388,631 651,832
Distribution fees (Note 3) 31,185 444,834 920,952 174,151 270,131
Transfer agent fees (Note 3) 24,182 386,288 723,139 105,836 171,305
Shareholder services fees (Note 3) 15,207 183,787 394,693 84,482 130,043
Registration fees 13,163 57,043 79,843 44,683 57,381
Fund accounting fees 30,427 41,126 40,432 63,743 85,671
Custodian fees 32,294 30,464 47,283 48,763 49,888
Professional fees 19,444 31,144 43,001 28,447 30,714
Reports to shareholders 3,210 39,763 53,805 11,551 21,498
Trustees' fees 3,500 4,634 6,622 4,853 5,098
Other expenses 920 12,367 24,568 4,776 10,596
------- ------- ------- ------- -------
Total expenses 249,568 1,966,599 4,308,048 959,916 1,484,157
------- ------- ------- ------- -------
Expenses waived and reimbursed by
Manager and Distributor (Note 3) (141,834) (758,563) (1,555,108) (396,360) (625,089)
------- ------- ------- ------- -------
Net expenses 107,734 1,208,036 2,752,940 563,556 859,068
NET INVESTMENT INCOME (LOSS) (2,757) (953,958) (2,387,470) (40,025) (91,578)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
(NOTES 4 AND 6):
Realized gain (loss) from:
Security transactions (1,054,281) (8,310,926) 51,495,508 1,333,288 2,028,827
Forward foreign currency contracts (38,203) -- -- -- (108,856)
Foreign currency transactions (13,822) (150,765) (150,091) (73,091) (377,833)
NET REALIZED GAIN (LOSS) (1,106,306) (8,461,691) 51,345,417 1,260,197 1,542,138
Net change in unrealized appreciation
(depreciation) from:
Investments (2,436,304) (24,920,390) (7,562,896) (228,874) (6,255,962)
Foreign Currencies (5,456) (500) 2,343 (3,990) (32,482)
NET CHANGE IN UNREALIZED DEPRECIATION (2,441,760) (24,920,890) (7,560,553) (232,864) (6,288,444)
Net realized and unrealized gain (loss) on
investments and foreign currencies (3,548,066) (33,382,581) 43,784,864 1,027,333 (4,746,306)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(3,550,823) $(34,336,539) $41,397,394 $987,308 $(4,837,884)
</TABLE>
<TABLE>
<CAPTION>
ING
GLOBAL ING
BRAND INTERNATIONAL
NAMES BOND
FUND FUND
--------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $60,458 $1,110,721
Dividend 538,975 --
Less: foreign withholding tax (24,019) (23,187)
------- ---------
Total income 575,414 1,087,534
EXPENSES:
Management fees (Note 3) 575,424 233,945
Distribution fees (Note 3) 334,843 119,807
Transfer agent fees (Note 3) 214,815 73,835
Shareholder services fees (Note 3) 143,700 58,483
Registration fees 52,600 45,776
Fund accounting fees 39,105 27,789
Custodian fees 46,035 46,917
Professional fees 28,967 25,697
Reports to shareholders 24,929 15,311
Trustees' fees 5,289 4,675
Other expenses 10,666 7,684
--------- ---------
Total expenses 1,476,373 659,919
--------- ---------
Expenses waived and reimbursed by
Manager and Distributor (Note 3) (498,503) (298,525)
--------- ---------
Net expenses 977,870 361,394
NET INVESTMENT INCOME (LOSS) (402,456) 726,140
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCIES
(NOTES 4 AND 6):
Realized gain (loss) from:
Security transactions 3,155,924 (2,360,675)
Forward foreign currency contracts -- (166,423)
Foreign currency transactions (64,377) (83,074)
NET REALIZED GAIN (LOSS) 3,091,547 (2,610,172)
Net change in unrealized appreciation
(depreciation) from:
Investments (777,858) (57,842)
Foreign Currencies (2,218) 38,811
NET CHANGE IN UNREALIZED DEPRECIATION (780,076) (19,031)
Net realized and unrealized gain (loss) on
investments and foreign currencies 2,311,471 (2,629,203)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,909,015 $(1,903,063)
</TABLE>
1. Commenced operations on March 1, 2000.
See Notes to Financial Statements.
ING Global / International Mutual Funds Annual Report / October 31, 2000 27
<PAGE> 30
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ING EMERGING ING GLOBAL
MARKETS COMMUNICATIONS
EQUITY FUND FUND
------------------- ---------------------
Period Ended Period Ended
October 31, 2000(1) October 31, 2000(1)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $(2,757) $(953,958)
Net realized gain (loss) on investments and foreign currency (1,106,306) (8,461,691)
Net change in unrealized appreciation (depreciation) (2,441,760) (24,920,890)
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (3,550,823) (34,336,539)
---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- -----------
-- --
---------- -----------
Capital gain
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- -----------
-- --
---------- -----------
Return of capital
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- -----------
-- --
---------- -----------
TOTAL DISTRIBUTIONS PAID -- --
---------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 10,684,433 86,861,183
Class B shares 358,854 47,927,080
Class C shares 260,320 13,221,011
Class I shares -- --
Class X shares 141,870 2,305,393
---------- -----------
11,445,477 150,314,667
---------- -----------
Dividend reinvestments
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- -----------
-- --
---------- -----------
Cost of shares repurchased
Class A shares (94,798) (11,731,420)
Class B shares (49,248) (5,583,505)
Class C shares (113,645) (2,714,001)
Class I shares -- --
Class X shares (5,221) (130,909)
---------- -----------
(262,912) (20,159,835)
---------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 11,182,565 130,154,832
INCREASE (DECREASE) IN NET ASSETS 7,631,742 95,818,293
NET ASSETS:
Beginning of period 7,500 7,500
END OF PERIOD* $7,639,242 $95,825,793
*Including net undistributed (overdistributed) investment income of: $ 3,225 $ --
</TABLE>
<TABLE>
<CAPTION>
ING GLOBAL
INFORMATION TECHNOLOGY FUND
------------------------------------------
Year Ended Period Ended
October 31, 2000 October 31, 1999(2)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $(2,387,470) $(469,089)
Net realized gain (loss) on investments and foreign currency 51,345,417 3,961,443
Net change in unrealized appreciation (depreciation) (7,560,553) 19,511,556
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 41,397,394 23,003,910
----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
----------- ----------
-- --
----------- ----------
Capital gain
Class A shares (2,824,829) --
Class B shares (441,871) --
Class C shares (232,295) --
Class I shares -- --
Class X shares (162,258) --
----------- ----------
(3,661,253) --
----------- ----------
Return of capital
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
----------- ----------
-- --
----------- ----------
TOTAL DISTRIBUTIONS PAID (3,661,253) --
----------- ----------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 95,688,028 34,340,200
Class B shares 36,086,827 4,934,897
Class C shares 20,725,083 1,826,104
Class I shares -- --
Class X shares 5,561,003 2,009,012
----------- ----------
158,060,941 43,110,213
----------- ----------
Dividend reinvestments
Class A shares 2,671,739 --
Class B shares 369,198 --
Class C shares 166,554 --
Class I shares -- --
Class X shares 118,224 --
----------- ----------
3,325,715 --
----------- ----------
Cost of shares repurchased
Class A shares (77,708,627) (542,965)
Class B shares (6,737,097) (61,977)
Class C shares (5,276,898) (27,703)
Class I shares -- --
Class X shares (1,436,415) (79,046)
----------- ----------
(91,159,037) (711,691)
----------- ----------
NET CHANGE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 70,227,619 42,398,522
INCREASE (DECREASE) IN NET ASSETS 107,963,760 65,402,432
NET ASSETS:
Beginning of period 65,409,575 7,143
END OF PERIOD* $173,373,335 $65,409,575
*Including net undistributed (overdistributed) investment income of: $ -- $(142)
</TABLE>
1. Commenced operations on March 1, 2000.
2. Commenced operations on December 15, 1998.
See Notes to Financial Statements.
28 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 31
<TABLE>
<CAPTION>
ING EUROPEAN EQUITY FUND
---------------------------------------
Year Ended Period Ended
October 31, 2000 October 31, 1999(2)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $(40,025) $116,340
Net realized gain (loss) on investments and foreign currency 1,260,197 687,271
Net change in unrealized appreciation (depreciation) (232,864) 1,746,393
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 987,308 2,550,004
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (137,855) --
Class B shares (2,147) --
Class C shares (249) --
Class I shares -- --
Class X shares (1,176) --
---------- ----------
(141,427) --
---------- ----------
Capital gain
Class A shares (752,031) --
Class B shares (22,715) --
Class C shares (2,187) --
Class I shares -- --
Class X shares (18,770) --
---------- ----------
(795,703) --
---------- ----------
Return of capital
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- ----------
-- --
---------- ----------
TOTAL DISTRIBUTIONS PAID (937,130) --
---------- ----------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 20,170,939 34,004,254
Class B shares 529,521 826,835
Class C shares 177,212 56,964
Class I shares -- --
Class X shares 194,506 681,711
---------- ----------
21,072,178 35,569,764
---------- ----------
Dividend reinvestments
Class A shares 878,229 --
Class B shares 21,091 --
Class C shares 2,455 --
Class I shares -- --
Class X shares 19,952 --
---------- ----------
921,727 --
---------- ----------
Cost of shares repurchased
Class A shares (17,910,649) (7,742,471)
Class B shares (260,463) (11,090)
Class C shares (40,853) --
Class I shares -- --
Class X shares (60,448) (9,842)
----------- ----------
(18,272,413) (7,763,403)
---------- ----------
NET CHANGE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 3,721,492 27,806,361
INCREASE (DECREASE) IN NET ASSETS 3,771,670 30,356,365
NET ASSETS:
Beginning of period 30,363,508 7,143
END OF PERIOD* $34,135,178 $30,363,508
*Including net undistributed (overdistributed) investment income of: $(1,262) $141,180
</TABLE>
<TABLE>
<CAPTION>
ING INTERNATIONAL EQUITY FUND
-----------------------------------------
Year Ended Period Ended
October 31, 2000 October 31, 1999(2)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $(91,578) $108,546
Net realized gain (loss) on investments and foreign currency 1,542,138 1,437,077
Net change in unrealized appreciation (depreciation) (6,288,444) 3,218,710
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (4,837,884) 4,764,333
---------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (164,802) --
Class B shares (6,442) --
Class C shares (5,629) --
Class I shares (1,063) --
Class X shares (2,218) --
---------- ---------
(180,154) --
---------- ---------
Capital gain
Class A shares (1,375,835) --
Class B shares (43,757) --
Class C shares (32,189) --
Class I shares (4,401) --
Class X shares (19,296) --
---------- ---------
(1,475,478) --
---------- ---------
Return of capital
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- ---------
-- --
---------- ---------
TOTAL DISTRIBUTIONS PAID (1,655,632) --
---------- ---------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 76,283,120 29,823,874
Class B shares 2,122,634 687,875
Class C shares 2,393,910 402,152
Class I shares 67,429 85,270
Class X shares 516,857 325,080
---------- ---------
81,383,950 31,324,251
---------- ---------
Dividend reinvestments
Class A shares 1,523,312 --
Class B shares 49,741 --
Class C shares 37,173 --
Class I shares 5,464 --
Class X shares 21,517 --
---------- ---------
1,637,207 --
---------- ---------
Cost of shares repurchased
Class A shares (55,773,433) (2,405,072)
Class B shares (352,453) (48,745)
Class C shares (333,469) --
Class I shares (34,804) --
Class X shares (133,261) (2,127)
---------- ---------
(56,627,420) (2,455,944)
---------- ---------
NET CHANGE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 26,393,737 28,868,307
INCREASE (DECREASE) IN NET ASSETS 19,900,221 33,632,640
NET ASSETS:
Beginning of period 33,639,783 7,143
END OF PERIOD* $53,540,004 $33,639,783
*Including net undistributed (overdistributed) investment income of: $26,658 $152,314
</TABLE>
<TABLE>
<CAPTION>
ING GLOBAL BRAND NAMES FUND
-----------------------------------------
Year Ended Period Ended
October 31, 2000 October 31, 1999(2)
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $(402,456) $(108,428)
Net realized gain (loss) on investments and foreign currency 3,091,547 743,653
Net change in unrealized appreciation (depreciation) (780,076) 4,236,410
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,909,015 4,871,635
---------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- ---------
-- --
---------- ---------
Capital gain
Class A shares (483,567) --
Class B shares (40,698) --
Class C shares (104,371) --
Class I shares (2,286) --
Class X shares (31,851) --
---------- ---------
(662,773) --
---------- ---------
Return of capital
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
---------- ---------
-- --
---------- ---------
TOTAL DISTRIBUTIONS PAID (662,773) --
---------- ---------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 25,387,679 33,423,997
Class B shares 3,173,074 2,772,072
Class C shares 7,087,036 7,249,758
Class I shares 22,904 456,052
Class X shares 980,709 2,238,091
---------- ---------
36,651,402 46,139,970
---------- ---------
Dividend reinvestments
Class A shares 471,252 --
Class B shares 37,572 --
Class C shares 102,170 --
Class I shares 2,281 --
Class X shares 31,490 --
---------- ---------
644,765 --
---------- ---------
Cost of shares repurchased
Class A shares (26,599,407) (2,263,633)
Class B shares (880,327) (39,010)
Class C shares (783,138) (131,596)
Class I shares (527,881) (4,595)
Class X shares (495,371) (37,345)
---------- ---------
(29,286,124) (2,476,179)
---------- ---------
NET CHANGE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS 8,010,043 43,663,791
INCREASE (DECREASE) IN NET ASSETS 9,256,285 48,535,426
NET ASSETS:
Beginning of period 48,542,569 7,143
END OF PERIOD* $57,798,854 $48,542,569
*Including net undistributed (overdistributed) investment income of: $ -- $ --
</TABLE>
<TABLE>
<CAPTION>
ING INTERNATIONAL BOND FUND
---------------------------------------
Year Ended Period Ended
October 31, 2000 October 31, 1999(2)
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Net investment income (loss) $726,140 $562,584
Net realized gain (loss) on investments and foreign currency (2,610,172) (1,371,116)
Net change in unrealized appreciation (depreciation) (19,031) (1,890,982)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,903,063) (2,699,514)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares -- (356)
Class B shares -- (4)
Class C shares -- --
Class I shares -- --
Class X shares -- (6)
----------- -----------
-- (366)
----------- -----------
Capital gain
Class A shares -- --
Class B shares -- --
Class C shares -- --
Class I shares -- --
Class X shares -- --
----------- -----------
-- --
----------- -----------
Return of capital
Class A shares (545,168) (551,089)
Class B shares (9,345) (5,936)
Class C shares (628) (99)
Class I shares (34) (51)
Class X shares (12,219) (9,146)
----------- -----------
(567,394) (566,321)
----------- -----------
TOTAL DISTRIBUTIONS PAID (567,394) (566,687)
----------- -----------
CAPITAL SHARE TRANSACTIONS (NOTE 9):
Net proceeds from sale of shares
Class A shares 200,163 26,645,837
Class B shares 145,314 545,209
Class C shares 44,784 15,073
Class I shares 974 5,813
Class X shares 38,942 794,628
----------- -----------
430,177 28,006,560
----------- -----------
Dividend reinvestments
Class A shares 542,738 550,002
Class B shares 8,518 4,861
Class C shares 599 94
Class I shares 19 50
Class X shares 12,061 9,128
----------- -----------
563,935 564,135
----------- -----------
Cost of shares repurchased
Class A shares (663,551) (379,828)
Class B shares (203,689) (1,867)
Class C shares (17,195) (2,758)
Class I shares (6,132) (402)
Class X shares (171,514) (20,606)
----------- -----------
(1,062,081) (405,461)
----------- -----------
NET CHANGE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (67,969) 28,165,234
INCREASE (DECREASE) IN NET ASSETS (2,538,426) 24,899,033
NET ASSETS:
Beginning of period 24,906,176 7,143
END OF PERIOD* $22,367,750 $24,906,176
*Including net undistributed (overdistributed) investment income of: $(152,836) $(67,772)
</TABLE>
1. Commenced operations on March 1, 2000.
2. Commenced operations on December 15, 1998.
See Notes to Financial Statements.
ING Global / International Mutual Funds Annual Report / October 31, 2000 29
<PAGE> 32
October 31, 2000
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 (the "Funds") are separate investment portfolios 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 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 foreign exchange gain or loss from foreign currency transactions
represent net foreign exchange gain or loss from forward foreign currency
contracts, disposition of foreign currencies, sale of international bonds,
currency gain or loss realized between the trade and settlement dates on
security transactions, and the difference between the amount of net
investment income recorded on the Funds' accounting records and the U.S.
dollar equivalent amounts actually received or paid. Net unrealized foreign
exchange gain or loss arises from changes in value of assets and
liabilities, other than investments in securities, as a result of changes
in exchange rates.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds 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.
30 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 33
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.
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 October 31, 2000, the Manager and the Sub-Advisers were
entitled to and 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 $76,036 $57,027 $38,018 $28,514
------------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 735,149 551,362 367,575 275,681
------------------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 1,973,710 1,055,169 986,855 527,585
------------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 388,631 214,405 194,316 107,203
------------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 651,832 353,429 325,916 176,715
------------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 575,424 315,756 287,712 157,878
------------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 233,945 130,037 116,973 65,019
</TABLE>
In addition, for the period ended October 31, 2000, the Manager has agreed to
reimburse expenses amounting to $58,668 for ING Emerging Markets Equity Fund,
$38,187 for ING European Equity Fund, $53,654 for ING International Equity Fund
and $44,369 for ING International Bond Fund.
ING Global / International Mutual Funds Annual Report / October 31, 2000 31
<PAGE> 34
October 31, 2000
NOTES TO FINANCIAL STATEMENTS
(continued)
DISTRIBUTION PLAN AND SHAREHOLDER SERVICING PLAN
The Trust, on behalf of the Funds, has adopted a Plan of Distribution pursuant
to Rule 12b-1 under the Investment Company Act. Each Fund pays ING Funds
Distributor, Inc. (the "Distributor") monthly, based on an annual rate of up to
0.50% of average daily net assets attributable to the Funds' Class A shares and
0.75% of average daily net assets attributable to the Funds' Class B, C, and X
shares. The distribution fee for all classes may be used by the Distributor for
the purpose of financing any activity which is primarily intended to result in
the sale of shares of the applicable Fund.
The Funds have adopted a Shareholder Servicing Plan pursuant to which each may
pay a service fee up to an annual rate of 0.25% of a Fund's average daily net
assets to various banks, trust companies, broker-dealers or other financial
organizations including the Manager and its affiliates.
For the period ended October 31, 2000, the Distributor 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 $31,185 $23,098 $15,207
------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 444,834 170,444 183,787
------------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 920,952 421,001 394,693
------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 174,151 126,871 84,482
------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 270,131 191,998 130,043
------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 334,843 154,008 143,700
------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 119,807 89,029 58,483
</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 October 31, 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 $27,310 $2,505 -- --
-------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 2,584,138 178,604 $27,209 $3,396
-------------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 1,719,427 137,566 29,147 12,515
-------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 46,088 3,215 370 302
-------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 168,019 7,937 1,137 550
-------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 105,532 17,759 359 3,051
-------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 1,201 494 -- 151
</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.
For the period ended October 31, 2000, ING Fund Services waived part of the
account servicing fees. The account servicing fees ING Fund Services was
entitled and waived are indicated below:
<TABLE>
<CAPTION>
Account Servicing Fee Account Servicing Fee
Fund Name Entitled Waived
--------------------------------------------------------------------------------------
<S> <C> <C>
ING Emerging Markets Equity Fund $15,207 $3,041
--------------------------------------------------------------------------------------
ING Global Communications Fund 183,787 36,757
--------------------------------------------------------------------------------------
ING Global Information Technology Fund 394,693 78,938
--------------------------------------------------------------------------------------
ING European Equity Fund 84,482 16,897
--------------------------------------------------------------------------------------
ING International Equity Fund 130,043 26,008
--------------------------------------------------------------------------------------
ING Global Brand Names Fund 143,700 28,739
--------------------------------------------------------------------------------------
ING International Bond Fund 58,483 35,090
</TABLE>
32 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 35
As of October 31, 2000, ING America Insurance Holdings, Inc. owned more
than 5% of the shares outstanding of each Fund's Class A shares listed below:
<TABLE>
<CAPTION>
Percentage of
Fund Name Shares Outstanding
--------------------------------------------------------------------------------
<S> <C>
ING Emerging Markets Equity Fund 93.8%
--------------------------------------------------------------------------------
ING Global Communications Fund 32.9
--------------------------------------------------------------------------------
ING Global Information Technology Fund 45.2
--------------------------------------------------------------------------------
ING European Equity Fund 85.6
--------------------------------------------------------------------------------
ING International Equity Fund 55.8
--------------------------------------------------------------------------------
ING Global Brand Names Fund 71.2
--------------------------------------------------------------------------------
ING International Bond Fund 97.0
</TABLE>
4. Investments in Securities
The aggregate cost of purchases and proceeds from sales of investments
(including maturities, but excluding short-term securities) for the period
ended October 31, 2000 and the aggregate gross unrealized appreciation and
depreciation of investments for U.S. federal income tax purpose at October
31, 2000 were as follows:
<TABLE>
<CAPTION>
Net Unrealized
Unrealized Unrealized Appreciation/
Fund Name Purchases Sales Appreciation Depreciation (Depreciation)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ING Emerging Markets Equity Fund $15,274,734 $4,404,958 $159,576 $2,699,421 $(2,539,845)
------------------------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 186,586,697 58,205,549 5,341,350 32,699,338 (27,357,988)
------------------------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 177,758,232 115,953,165 36,053,535 24,475,883 11,577,652
------------------------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 21,145,213 20,282,024 3,315,911 2,109,074 1,206,837
------------------------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 83,125,153 64,065,790 1,903,153 5,113,310 (3,210,157)
------------------------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 29,944,810 23,978,460 7,056,458 4,147,306 2,909,152
------------------------------------------------------------------------------------------------------------------------------------
ING International Bond Fund 30,287,646 31,828,135 160,020 2,266,265 (2,106,245)
</TABLE>
5. IN-KIND TRANSFER OF SECURITIES
During the period ended October 31, 2000, the ING Global Brand Names Fund
redeemed portfolio securities with a market value of $4,915,367 (carrying
value $4,259,219) in an in-kind redemption transaction.
6. FORWARD FOREIGN CURRENCY CONTRACTS
At October 31, 2000, the ING Emerging Markets Equity Fund, ING European
Equity Fund, ING International Equity 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 Loss
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
To Buy:
EURO 181,000 $158,818 $153,447 11/6/00 $(5,371)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation on forward foreign currency contracts $ (5,371)
--------
</TABLE>
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING EUROPEAN EQUITY FUND Currency Cost/Proceeds Value Date Gain (Loss)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
British Pound 38,284 $55,053 $55,590 11/1/00 $537
British Pound 33,743 49,096 48,996 11/2/00 (100)
British Pound 4,771 6,918 6,928 11/3/00 10
EURO 90,474 76,089 76,686 11/1/00 597
-------- -------- -------
$187,156 $188,200 $1,044
------------------------------------------------------------------------------------------------------------------------------------
TO SELL:
EURO 90,884 $77,251 $77,033 11/2/00 $218
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on forward foreign currency contracts $ 1,362
-------
Gross unrealized depreciation on forward foreign currency contracts $ (100)
-------
</TABLE>
ING Global / International Mutual Funds Annual Report / October 31, 2000 33
<PAGE> 36
October 31, 2000
NOTES TO FINANCIAL STATEMENTS
(continued)
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING INTERNATIONAL EQUITY FUND Currency Cost Value Date Loss
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
EURO 3,871,127 $3,315,107 $3,288,449 12/18/00 $(26,658)
Swedish Kroner 1,195,782 119,340 119,340 11/1/00 --
---------- ---------- ---------
$3,434,447 $3,407,789 $(26,658)
------------------------------------------------------------------------------------------------------------------------------------
TO SELL:
Hong Kong Dollar 25,851,000 $3,315,107 $3,317,975 12/18/00 $(2,868)
------------------------------------------------------------------------------------------------------------------------------------
$(29,526)
---------
</TABLE>
Gross unrealized depreciation on forward foreign currency contracts
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
ING INTERNATIONAL BOND FUND Currency Cost/Proceeds Value Date Gain (Loss)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
TO BUY:
British Pound 55,000 $78,876 $79,931 12/15/00 $1,055
Canadian Dollar 1,017,000 685,310 666,322 11/30/00 (18,988)
EURO 538,709 447,936 456,610 11/2/00 8,674
EURO 5,733,000 5,008,508 4,861,305 11/10/00 (147,203)
EURO 1,935,000 1,651,600 1,640,786 11/10/00 (10,814)
Japanese Yen 237,500,000 2,203,154 2,181,571 11/17/00 (21,583)
Japanese Yen 248,738,000 2,361,399 2,284,798 11/17/00 (76,601)
Swedish Kroner 4,464,000 454,268 446,630 11/30/00 (7,638)
Swiss Francs 2,910,000 1,679,169 1,630,267 1/19/01 (48,902)
----------- ----------- ---------
$14,570,220 $14,248,220 $(322,000)
------------------------------------------------------------------------------------------------------------------------------------
TO SELL:
British Pound 55,000 $78,876 $79,863 11/2/00 $(987)
British Pound 1,430,000 2,101,165 2,078,215 12/15/00 22,950
EURO 1,188,000 1,013,762 1,007,366 11/10/00 6,396
EURO 3,672,000 3,354,923 3,113,678 11/10/00 241,245
Swedish Kroner 8,120,000 868,821 812,418 11/30/00 56,403
Swiss Francs 2,910,000 1,690,976 1,630,267 1/19/01 60,709
----------- ----------- ---------
$9,108,523 $8,721,807 $386,716
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation on forward foreign currency contracts $ 397,432
---------
Gross unrealized depreciation on forward foreign currency contracts $(332,716)
---------
</TABLE>
7. 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.
34 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 37
8. 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. If the seller should default on its obligation to repurchase the
securities, the Fund may experience a loss of income from the loaned
securities and a decrease in the value of any collateral, problems in
exercising its rights to the underlying securities and costs and time
delays in connection with the disposition of securities.
9. FEDERAL INCOME TAX
Income dividends and capital gain distributions are determined in
accordance with Federal income tax regulations which may differ from those
determined in accordance with generally accepted accounting principles. To
the extent these differences are permanent, such amounts are reclassified
within the capital accounts based on their Federal tax basis treatment;
temporary differences do not require such reclassifications. These amounts
are as follows:
<TABLE>
<CAPTION>
Undistributed Net Undistributed Net Paid-in
Fund Name Investment Income Realized Gains and Losses Capital
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ING Emerging Markets Equity Fund $5,982 $52,025 $(58,007)
-----------------------------------------------------------------------------------------------------------------------
ING Global Communications Fund 953,958 150,765 (1,104,723)
-----------------------------------------------------------------------------------------------------------------------
ING Global Information Technology Fund 2,387,612 (2,387,612) --
-----------------------------------------------------------------------------------------------------------------------
ING European Equity Fund 39,010 (39,010) --
-----------------------------------------------------------------------------------------------------------------------
ING International Equity Fund 146,076 322,080 (468,156)
-----------------------------------------------------------------------------------------------------------------------
ING Global Brand Names Fund 402,456 64,377 (466,833)
-----------------------------------------------------------------------------------------------------------------------
ING International Bond Fund (243,810) 2,046,818 (1,803,008)
</TABLE>
At October 31, 2000, ING Emerging Markets Equity Fund, ING Global Communications
Fund and ING International Bond Fund had, for Federal income tax purposes,
capital loss carryforwards available to offset future realized gains. The amount
and date of expiration of these carryforwards are as follows:
<TABLE>
<CAPTION>
Fund Name Capital Loss Carryforwards Expiration
--------------------------------------------------------------------------------
<S> <C> <C>
ING Emerging Markets Equity Fund $950,740 October 31, 2008
--------------------------------------------------------------------------------
ING Global Communications Fund 5,873,328 October 31, 2008
--------------------------------------------------------------------------------
ING International Bond Fund 247,357 October 31, 2007
--------------------------------------------------------------------------------
ING International Bond Fund 563,354 October 31, 2008
</TABLE>
10. SHARES OF BENEFICIAL INTEREST
At October 31, 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.
ING Global / International Mutual Funds Annual Report / October 31, 2000 35
<PAGE> 38
October 31, 2000
NOTES TO FINANCIAL STATEMENTS
(continued)
Transactions in shares of each class were as follows:
ING EMERGING MARKETS EQUITY FUND(1)
<TABLE>
<CAPTION>
Period Ended 10/31/00
Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C>
Shares Sold
Class A 1,078,529 $10,684,433
Class B 36,130 358,854
Class C 26,945 260,320
Class X 16,973 141,870
--------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A -- --
Class B -- --
Class C -- --
Class X -- --
--------------------------------------------------------------------------------
Shares Redeemed
Class A (12,048) $(94,798)
Class B (5,721) (49,248)
Class C (13,309) (113,645)
Class X (709) (5,221)
--------------------------------------------------------------------------------
Net Increase
Class A 1,066,481 $10,589,635
Class B 30,409 309,606
Class C 13,636 146,675
Class X 16,264 136,649
--------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on March 1, 2000.
ING GLOBAL INFORMATION TECHNOLOGY FUND(1)
<TABLE>
<CAPTION>
Year Ended 10/31/00 Period Ended 10/31/99
Shares Amount Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold
Class A 3,430,072 $95,688,028 3,191,651 $34,340,200
Class B 1,321,762 36,086,827 349,185 4,934,897
Class C 769,591 20,725,083 123,393 1,826,104
Class X 210,415 5,561,003 153,449 2,009,012
--------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A 115,782 $2,671,739 -- --
Class B 15,652 369,198 -- --
Class C 7,474 166,554 -- --
Class X 5,015 118,224 -- --
--------------------------------------------------------------------------------
Shares Redeemed
Class A (2,613,877) $(77,708,627) (38,396) $(542,965)
Class B (242,629) (6,737,097) (4,369) (61,977)
Class C (196,294) (5,276,898) (2,008) (27,703)
Class X (50,855) (1,436,415) (6,206) (79,046)
--------------------------------------------------------------------------------
Net Increase
Class A 931,977 $20,651,140 3,153,255 $33,797,235
Class B 1,094,785 29,718,928 344,816 4,872,920
Class C 580,771 15,614,739 121,385 1,798,401
Class X 164,575 4,242,812 147,243 1,929,966
--------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998. Class X
shares commenced offering on January 11, 1999.
ING GLOBAL COMMUNICATIONS FUND(1)
<TABLE>
<CAPTION>
Period Ended 10/31/00
Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C>
Shares Sold
Class A 9,006,166 $86,861,183
Class B 4,936,462 47,927,080
Class C 1,370,070 13,221,011
Class X 252,896 2,305,393
--------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A -- --
Class B -- --
Class C -- --
Class X -- --
--------------------------------------------------------------------------------
Shares Redeemed
Class A (1,413,239) $(11,731,420)
Class B (667,032) (5,583,505)
Class C (326,514) (2,714,001)
Class X (15,870) (130,909)
--------------------------------------------------------------------------------
Net Increase
Class A 7,592,927 $75,129,763
Class B 4,269,430 42,343,575
Class C 1,043,556 10,507,010
Class X 237,026 2,174,484
--------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on March 1, 2000.
ING EUROPEAN EQUITY FUND(1)
<TABLE>
<CAPTION>
Year Ended 10/31/00 Period Ended 10/31/99
Shares Amount Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold
Class A 1,758,487 $20,170,939 3,358,479 $34,004,254
Class B 50,379 529,521 78,820 826,835
Class C 15,141 177,212 5,439 56,964
Class X 16,513 194,506 65,838 681,711
--------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A 76,223 $878,229 -- --
Class B 1,839 21,091 -- --
Class C 214 2,455 -- --
Class X 1,740 19,952 -- --
--------------------------------------------------------------------------------
Shares Redeemed
Class A (1,537,388) $(17,910,649) (734,074) $(7,742,471)
Class B (27,021) (260,463) (1,051) (11,090)
Class C (3,557) (40,853) -- --
Class X (5,259) (60,448) (924) (9,842)
--------------------------------------------------------------------------------
Net Increase
Class A 297,322 $3,138,519 2,624,405 $26,261,783
Class B 25,197 290,149 77,769 815,745
Class C 11,798 138,814 5,439 56,964
Class X 12,994 154,010 64,914 671,869
--------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998. Class X
shares commenced offering on January 15, 1999.
36 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 39
ING International Equity Fund(1)
<TABLE>
<CAPTION>
Year Ended 10/31/00 Period Ended 10/31/99
Shares Amount Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold
Class A 6,167,103 $76,283,120 2,924,161 $29,823,874
Class B 169,363 2,122,634 61,956 687,875
Class C 187,979 2,393,910 35,273 402,152
Class I 5,234 67,429 7,500 85,270
Class X 41,205 516,857 29,719 325,080
--------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A 120,116 $1,523,312 -- --
Class B 3,954 49,741 -- --
Class C 2,964 37,173 -- --
Class I 433 5,464 -- --
Class X 1,709 21,517 -- --
--------------------------------------------------------------------------------
Shares Redeemed
Class A (4,523,248) $(55,773,433) (208,844) $(2,405,072)
Class B (28,100) (352,453) (4,319) (48,745)
Class C (28,423) (333,469) -- --
Class I (2,695) (34,804) -- --
Class X (10,288) (133,261) (185) (2,127)
--------------------------------------------------------------------------------
Net Increase
Class A 1,763,971 $22,032,999 2,715,317 $27,418,802
Class B 145,217 1,819,922 57,637 639,130
Class C 162,520 2,097,614 35,273 402,152
Class I 2,972 38,089 7,500 85,270
Class X 32,626 405,113 29,534 322,953
--------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998. Class I
shares commenced offering on September 27, 1999. Class X shares commenced
offering on February 16, 1999.
ING INTERNATIONAL BOND FUND(1)
<TABLE>
<CAPTION>
Year Ended 10/31/00 Period Ended 10/31/99
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold
Class A 23,933 $200,163 2,674,034 $26,645,837
Class B 17,060 145,314 58,708 545,209
Class C 5,322 44,784 1,687 15,073
Class I 112 974 648 5,813
Class X 4,645 38,942 85,168 794,628
-----------------------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A 65,875 $542,738 60,379 $550,002
Class B 1,035 8,518 546 4,861
Class C 73 599 11 94
Class I 2 19 7 50
Class X 1,462 12,061 1,023 9,128
-----------------------------------------------------------------------------------------------
Shares Redeemed
Class A (79,937) $(663,551) (42,143) $(379,828)
Class B (24,447) (203,689) (207) (1,867)
Class C (2,074) (17,195) (315) (2,758)
Class I (723) (6,132) (46) (402)
Class X (20,592) (171,514) (2,283) (20,606)
-----------------------------------------------------------------------------------------------
Net Increase (Decrease)
Class A 9,871 $79,350 2,692,270 $26,816,011
Class B (6,352) (49,857) 59,047 548,203
Class C 3,321 28,188 1,383 12,409
Class I (609) (5,139) 609 5,461
Class X (14,485) (120,511) 83,908 783,150
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998. Class I
shares commenced offering on July 29, 1999. Class X shares commenced
offering on January 11, 1999.
ING Global Brand Names Fund(1)
<TABLE>
<CAPTION>
Year Ended 10/31/00 Period Ended 10/31/99
Shares Amount Shares Amount
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold
Class A 2,023,266 $25,387,679 3,258,101 $33,423,997
Class B 254,648 3,173,074 250,238 2,772,072
Class C 564,866 7,087,036 667,391 7,249,758
Class I 1,935 22,904 40,252 456,052
Class X 79,102 980,709 204,477 2,238,091
---------------------------------------------------------------------------------------
Shares Issued on
Reinvestment
Class A 39,131 $471,252 -- --
Class B 3,095 37,572 -- --
Class C 8,528 102,170 -- --
Class I 189 2,281 -- --
Class X 2,641 31,490 -- --
---------------------------------------------------------------------------------------
Shares Redeemed
Class A (2,112,447) $(26,599,407) (200,377) $(2,263,633)
Class B (71,738) (880,327) (3,525) (39,010)
Class C (63,861) (783,138) (11,910) (131,596)
Class I (41,962) (527,881) (414) (4,595)
Class X (39,609) (495,371) (3,326) (37,345)
---------------------------------------------------------------------------------------
Net Increase (Decrease)
Class A (50,050) $(740,476) 3,057,724 $31,160,364
Class B 186,005 2,330,319 246,713 2,733,062
Class C 509,533 6,406,068 655,481 7,118,162
Class I (39,838) (502,696) 39,838 451,457
Class X 42,134 516,828 201,151 2,200,746
---------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998. Class I
shares commenced offering on July 29, 1999. Class X shares commenced
offering on January 14, 1999.
11. SUBSEQUENT EVENTS
ON NOVEMBER 16, 2000, the Board of Trustees of the ING Funds Trust approved
the proposed reorganizations of ING Emerging Markets Equity Fund into
Pilgrim Emerging Countries Fund, ING Global Brand Names Fund into Pilgrim
Worldwide Growth Fund, ING International Equity Fund into Pilgrim
International Fund, Pilgrim Global Technology Fund into ING Global
Information Technology Fund and ING International Bond Fund into Pilgrim
Strategic Income Fund. The proposed reorganizations are subject to
shareholder approval. If shareholder approval is obtained, it is expected
that the reorganizations will take place in the first quarter of 2001.
EFFECTIVE NOVEMBER 1, 2000, the Funds ceased offering Class X shares to new
and existing investors. Any attempted purchases of Class X shares will be
rejected and the proceeds returned to the investor. It is anticipated that
existing Class X shares will be converted to Class B shares on or about the
close of business on November 17, 2000.
EFFECTIVE NOVEMBER 1, 2000, ING Pilgrim Securities, Inc. ("ING Pilgrim
Securities") became the named distributor of the Funds, and the
distribution agreement between the Funds and ING Funds Distributor, Inc.
terminated. ING Pilgrim Securities is located at 7337 East Doubletree Ranch
Road, Scottsdale, Arizona 85258.
EFFECTIVE NOVEMBER 1, 2000, Brown Brothers Harriman & Co. became the
custodian to the Funds.
ING Global / International Mutual Funds Annual Report / October 31, 2000 37
<PAGE> 40
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF ING FUNDS TRUST:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of 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 (seven of the portfolios constituting ING Funds
Trust) (collectively, the "Funds") as of October 31, 2000, and the related
statements of operations for the period then ended and the statements of changes
in net assets and financial highlights for the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
verification by confirmation of securities held by the custodian as of October
31, 2000 and confirmation of securities not held by the custodian by
correspondence with others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Funds at October 31, 2000, the results of their operations for the period then
ended, and the changes in their net assets and their financial highlights for
the periods indicated therein, in conformity with accounting principles
generally accepted in the United States.
[ERNST & YOUNG LLP SIG GRAPHIC]
New York, New York
December 5, 2000
38 ING Global / International Mutual Funds Annual Report / October 31, 2000
<PAGE> 41
ING MUTUAL FUNDS
BOARD OF TRUSTEES
Blaine E. Rieke, Chairman of the Board
Joseph N. Hankin
Jack D. Rehm
Richard A. Wedemeyer
OFFICERS
Robert W. Stallings, Chief Executive Officer and President
James M. Hennessy, Senior Executive Vice President, Chief Operating Officer
and Secretary
Stanley D. Vyner, Executive Vice President
Mary Lisanti, Executive Vice President
Michael J. Roland, Senior Vice President
Robert S. Naka, Senior Vice President and Assistant Secretary
Robyn L. Ichilov, Vice President
OFFICE OF THE FUNDS
7337 East Doubletree Ranch Road
Scottsdale, AZ 85258
MANAGER
ING Mutual Funds Management Co. LLC
1475 Dunwoody Drive
West Chester, PA 19380-1478
DISTRIBUTOR
ING Pilgrim Securities, Inc.
7337 East Doubletree Ranch Road
Scottsdale, AZ 85258
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
TRANSFER AGENT
DST Systems, Inc.
P.O. Box 219368
Kansas City, MO 64121-9368
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 Bishopsgate
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
ING Global / International Mutual Funds Annual Report / October 31, 2000 39
<PAGE> 42
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 1-800-334-3444 OR VISIT OUR WEB
SITE AT www.ingfunds.com
<TABLE>
<S> <C> <C>
STOCK FUNDS
FUND OBJECTIVE PRIMARY PORTFOLIO
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
GLOBAL/INTERNATIONAL FUNDS
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.
BOND FUNDS
ING High Yield Bond Fund High current income and total return Below-investment grade corporate bonds
ING Intermediate Bond Fund High current income U.S. government and high-quality
corporate bonds
ING National Tax-Exempt Bond Fund High current tax-exempt income Diversified portfolio of municipal bonds
MONEY MARKET FUNDS
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> 43
ING MUTUAL FUNDS
INFORMATION AND SERVICES
CUSTOMER SERVICE
REPRESENTATIVES
1-800-334-3444
MON - FRI 8:00AM - 6:00PM
AUTOMATED FUND AND
ACCOUNT INFORMATION
1-800-334-3444
24 HOURS, 7 DAYS A WEEK
WEB SITE
www.ingfunds.com
TRANSFER AGENT
DST SYSTEMS, INC.
P.O. BOX 219368
KANSAS CITY, MO 64121-9368
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 DECEMBER 31, 2000, THIS REPORT MUST BE ACCOMPANIED BY PERFORMANCE
FOR THE MOST RECENTLY COMPLETED CALENDAR QUARTER.
RS.0002.12/00
[ING FUNDS GRAPHIC]
BULK RATE
U.S. POSTAGE
PAID
Mailed from Zip Code 07303
Permit No. 412
AMERICAS ING FUNDS
