<PAGE> 1
AMERICAS ING FUNDS
ING MONEY MARKET FUND
ANNUAL REPORT / OCTOBER 31, 2000
[MONEY MARKET GRAPHIC]
[ING FUNDS LOGO]
<PAGE> 2
TABLE OF CONTENTS
FUND INFORMATION AT YOUR FINGERTIPS
WE ARE PLEASED TO PROVIDE THIS DETAILED REVIEW OF THE ING MONEY MARKET FUND FOR
THE PERIOD THAT ENDED 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.
PAGE 3 FUND SUMMARY
A summary of the Fund's performance record and portfolio composition, and an
interview with the Fund's portfolio manager.
PAGES 4 - 5 SCHEDULE OF INVESTMENTS
A complete listing of the securities in the Fund's portfolio as of 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.
PAGE 7 FINANCIAL HIGHLIGHTS
A description of the factors that affected a Fund's net asset value (NAV) during
the reporting period. In addition to providing total returns, this section
reports asset sizes, distributions, expense ratios and portfolio turnover rates
(when applicable).
PAGE 8 STATEMENT OF ASSETS & LIABILITIES
A complete "balance sheet" as of the end of the reporting period. It includes
the Fund's NAV, which is calculated by dividing its net assets (assets minus
liabilities) by its number of shares outstanding.
PAGE 8 STATEMENT OF OPERATIONS
A listing of a Fund's investment income, expenses and gains or losses on
securities, as well as appreciation or depreciation from portfolio holdings.
PAGE 9 STATEMENTS OF CHANGES IN NET ASSETS
A reporting of the increase or decrease in a Fund's net assets during the
reporting period. Changes in net assets could occur for a variety of reasons,
including investment operations, dividend distributions and capital share
transactions.
PAGES 10 - 12 NOTES TO FINANCIAL STATEMENTS
A description of the significant accounting policies of the Fund, and more
detailed information about the schedules and tables that appear in the report.
INSIDE BACK COVER FUND FAMILY OVERVIEW
A brief summary of the ING Funds, including objectives and primary portfolios.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF ANY BANK, ARE NOT
GUARANTEED BY ANY BANK, ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY, AND
INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED.
ING Funds are distributed by ING Funds Distributor, Inc. and ING Pilgrim
Securities, Inc. through a sub-distribution agreement. Member NASD.
<PAGE> 3
A LETTER FROM THE PRESIDENT
[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."
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
2 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 4
DATA AS OF 10/31/00
ING MONEY MARKET FUND
FOR INVESTORS SEEKING PRESERVATION OF CAPITAL AND LIQUIDITY
ASSET ALLOCATION(1)
<TABLE>
<S> <C>
1st Tier Commercial Paper 59.1%
--------------------------------------------------------------------------------
Short & Medium Term Notes 14.5
--------------------------------------------------------------------------------
Floating Rate Notes 10.3
--------------------------------------------------------------------------------
Yankee CD 5.2
--------------------------------------------------------------------------------
Repurchase Agreement 4.5
--------------------------------------------------------------------------------
Domestic CD 3.3
--------------------------------------------------------------------------------
Euro CD 3.1
</TABLE>
PERFORMANCE HIGHLIGHTS
<TABLE>
<CAPTION>
iMoneyNet, Inc.
1st Tier
Retail Index(4)
7-Day Yield 30-Day Yield (30-Day) Average
<S> <C> <C> <C>
A Shares 5.97% 5.95% 5.89%
--------------------------------------------------------------------------------
B Shares 5.33 5.31 --
--------------------------------------------------------------------------------
C Shares 5.33 5.31 --
--------------------------------------------------------------------------------
I Shares(2) 6.43 6.41 --
--------------------------------------------------------------------------------
X Shares(3) 5.33 5.32 --
</TABLE>
Inception date for Class A, B, and C shares is 12/15/98.
Inception date for Class I shares is 10/13/99.
Inception date for Class X shares is 1/20/99.
TOP TEN HOLDINGS(1)
<TABLE>
<S> <C>
State Street Repurchase Agreement,
6.54% due 11/1/00 4.5%
--------------------------------------------------------------------------------
Toronto Dominion Bank NY
ECD 6.56% due 12/20/00 2.2
--------------------------------------------------------------------------------
Wachovia Bank NA,
6.54% due 12/7/00 2.2
--------------------------------------------------------------------------------
Wachovia Bank NA,
6.59% due 11/16/00 2.2
--------------------------------------------------------------------------------
Park Avenue Receivable ABCP
due 1/29/01 1.9
--------------------------------------------------------------------------------
Ciesco LP CP due 11/2/00 1.8
--------------------------------------------------------------------------------
Ford Motor Credit Corp. CP,
due 11/20/00 1.7
--------------------------------------------------------------------------------
Caterpillar Financial Services
FRN 6.75% due 11/22/00 1.5
--------------------------------------------------------------------------------
Household Finance Corp.
FRN 6.63% due 12/29/00 1.5
--------------------------------------------------------------------------------
SBC Communications
FRN 6.63% due 11/15/00 1.5
</TABLE>
PAST PERFORMANCE IS HISTORICAL AND IS NO GUARANTEE OF FUTURE RESULTS. SHARES OF
THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORP., OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE
VALUE OF $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
1. Fund holdings are subject to change and are dollar-weighted based on invested
assets. 2. Class I shares are offered only to a) retirement plans affiliated
with ING Group and, b) ING Group and its affiliates for purposes of corporate
cash management. Shares are sold without an initial sales charge and are not
subject to any Rule 12b-1 fees, shareholder servicing fees or account servicing
fees. 3. Class X shares are offered to qualified investors (including, but not
limited to, IRAs, Roth IRAs, Education IRAs, SEP IRAs, Simple IRAs and 403(b)(7)
Plans). Investors purchasing Class X shares will receive bonus shares having a
value equal to 2% of the amount invested. Bonus shares are paid by the Fund's
Distributor. Shares purchased by the reinvestment of dividends or capital gains
distributions are not eligible for bonus shares. 4. The iMoneyNet, Inc. 1st Tier
Retail Index tracks the performance, assets, average maturities and portfolio
composition of over 1,300 taxable and tax-free money funds.
MANAGER'S OVERVIEW
[PHOTO OF JENNIFER THOMPSON]
JENNIFER THOMPSON
Portfolio Management
Team Leader
OBJECTIVE
The preservation of capital and liquidity and the maintenance of a stable $1.00
net asset value per share.
"THE FUND CONTINUED TO BENEFIT FROM THE HIGHER RATES IT EARNS ON THESE
SECURITIES."
QUESTION: How did the Fund perform during the reporting period?
ANSWER: The Fund continued to meet its objective of providing high current
income. As of October 31, 2000 the Fund had a seven-day yield of 5.98% for
its Class A shares, 5.33% for its Class B, C and X shares. This compares to
the seven-day yield of 5.89% from the Fund's benchmark, the iMoneyNet, Inc.
First Tier Retail Index.
QUESTION: Can you describe the economic conditions over the last year?
ANSWER: During the year, the U.S. economy continued to demonstrate strength as
represented by the real GDP of 7.3% in the fourth quarter 1999, 4.8% in
first quarter of 2000 and 5.6% during the second quarter 2000. In order to
contain potential inflationary pressures, the Fed raised its Fed Funds
target beginning in June 1999 and continuing through May 2000.
Since May 2000, the Fed has chosen to leave rates unchanged, but maintains a
view that conditions may lead to increased inflationary pressures in the
future. In fact, the economy is showing signs of expanding at a slower rate
as represented by preliminary third quarter GDP of 2.7%.
QUESTION: What strategies did you employ in this environment?
ANSWER: For the first half of the period, the Fund's average maturity was
shorter than its competitors in anticipation of Fed rate hikes. Thus, after
each increase, the Fund invested maturing securities at higher rates, faster
than its competitors. However, after the May 2000 increase the Fund extended
its average maturity beyond that of competitors, by selectively purchasing
longer maturity securities. The timing of this extension was good, as
long-term rates peaked in May and have gradually ratcheted down since then.
The Fund continues to benefit from the higher rates it earns on these
securities.
QUESTION: What is your outlook for the Fund?
ANSWER: At its most recent meeting, the Fed left rates unchanged, but continued
to express concerns about inflation. However, market sentiment expresses a
slightly different view -- that inflationary risks are moderating and the
Fed's next move might be to lower short-term rates, although there is little
consensus about the timing of such a move. As such, the yield curve is flat,
and the Fund's average maturity remains longer than competitors as a hedge.
SEE PAGE 4 FOR FINANCIAL DETAILS.
THE VIEWS EXPRESSED IN THE MANAGER'S OVERVIEW ARE SOLELY THOSE OF THE PORTFOLIO
MANAGER.
[ING FUNDS LOGO] ING Money Market Fund Annual Report / October 31, 2000 3
<PAGE> 5
OCTOBER 31, 2000
SCHEDULE OF INVESTMENTS
ING MONEY MARKET FUND
<TABLE>
<CAPTION>
Principal
Amount Ratings(1) Value
--------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED COMMERCIAL PAPER(2) -- 23.5%
--------------------------------------------------------------------------------------------------
$20,000,000 Ciesco LP, 6.64% to 6.73%
due 11/2/00 to 2/1/01(3) A-1+/P-1 $ 19,824,082
15,000,000 Corporate Asset Funding,
6.65% to 6.71%
due 11/9/00 to 2/23/01(3) A-1+/P-1 14,875,733
17,000,000 Delaware Funding Corp.,
6.65% to 6.76%
12/13/00 to 1/18/01(3) A-1+/P-1 16,793,224
20,768,000 Park Avenue Receivable,
6.64% to 6.74%
due 11/17/00 to 1/29/01(3) A-1/P-1 20,579,074
14,000,000 Preferred Receivable Funding,
6.63% to 6.70%
due 11/22/00 to 12/4/00(3) A-1/P-1 13,932,907
21,470,000 Windmill Funding,
6.62% to 6.68%
due 11/10/00 to 12/8/00(3) A-1+/P-1 21,402,732
TOTAL ASSET-BACKED COMMERCIAL PAPER
(Cost -- $107,407,752) $107,407,752
--------------------------------------------------------------------------------------------------
COMMERCIAL PAPER(2) -- 35.6%
--------------------------------------------------------------------------------------------------
AUTO CARS/LIGHT TRUCKS -- 1.1%
5,000,000 DaimlerChrysler NA Holding,
6.66% due 11/8/00(3)(4) A-1/P-1 $ 4,993,661
COMMERCIAL BANKS -- 3.7%
7,000,000 Abbey National North America,
6.75% due 12/22/00 A-1+/P-1 6,937,128
10,000,000 State Street Corp., 6.61% to
6.73% due 12/18/00 to 1/24/01 A-1+/P-1 9,881,998
------------
16,819,126
DIVERSIFIED FINANCIAL SERVICES -- 3.9%
5,000,000 Associates Corp. NA,
6.78% due 1/16/01(3)(4) A-1/P-1 4,930,544
13,000,000 General Electric Capital Corp.,
6.65% to 6.88%
due 12/14/00 to 2/6/01 A-1+/P-1 12,834,948
------------
17,765,492
FINANCE - AUTO LOANS -- 5.4%
17,000,000 General Motors Acceptance Corp.,
6.73% to 6.82%
due 1/30/01 to 2/12/01 A-1/P-1 16,705,887
8,000,000 Ford Motor Credit Co.,
6.61% due 11/20/00 A-1/P-1 7,972,682
------------
24,678,569
FINANCE - CONSUMER LOANS -- 3.3%
15,000,000 American General Finance Corp.
6.63% to 6.70%
due 11/13/00 to 12/15/00(3) A-1/P-1 14,937,723
FINANCE - CREDIT CARD -- 1.1%
5,000,000 American Express Co.,
6.62% due 11/30/00 A-1/P-1 4,973,900
FINANCE - INVESTMENT BANKER/BROKER -- 3.7%
12,000,000 Goldman Sachs Group Inc.,
6.83% to 6.92%
due 1/10/01 to 2/7/01 A-1+/P-1 11,802,607
5,000,000 Salomon Smith Barney Holdings
Inc., 6.65% due 11/1/00 A-1/P-1 5,000,000
------------
16,802,607
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Ratings(1) Value
--------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE - OTHER SERVICES -- 0.7%
$3,500,000 Caterpillar Financial Services,
Inc., 7.01% due 2/1/01 A-1/P-1 $ 3,440,519
FOOD - FLOUR & GRAIN -- 1.1%
5,000,000 Archer Daniels Midland,
6.83% due 2/8/01 A-1/P-1 4,910,487
FOOD - MISCELLANEOUS/DIVERSIFIED -- 1.5%
7,000,000 Heinz Co., 6.73% due 2/5/01 A-1/P-1 6,878,667
MONEY CENTER BANKS -- 1.1%
5,000,000 Credit Suisse First Boston Inc.,
6.74% due 2/12/01 A-1+/P-1 4,907,014
MULTI-LINE INSURANCE -- 1.5%
7,000,000 Aegon Funding Corp.
6.62% due 12/13/00(3) A-1+/P-1 6,949,122
RETAIL - DISCOUNT -- 1.1%
5,000,000 Wal-Mart Stores Inc.,
6.65% due 11/21/00 A-1+/P-1 4,982,028
SPECIAL PURPOSE ENTITY -- 4.0%
5,000,000 Bell Atlantic Financial Services,
Inc., 6.68% due 11/1/00 A-1/P-1 5,000,000
5,000,000 Deutsche Bank Financial,
6.75% due 1/31/01 A-1+/P-1 4,917,721
8,600,000 Verizon Global Funding,
6.68% to 6.72%
due 11/1/00 to 11/6/00 A-1+/P-1 8,593,681
------------
18,511,402
SUPER-REGIONAL BANKS - US -- 1.1%
5,000,000 Bank of America NA,
7.03% due 12/6/00 A-1+/P-1 4,967,430
TELEPHONE - LONG DISTANCE -- 1.3%
6,000,000 AT&T Corp.,
6.74% due 1/29/01 A-1+/P-1 5,903,287
TOTAL COMMERCIAL PAPER
(Cost -- $162,421,034) $162,421,034
--------------------------------------------------------------------------------------------------
SHORT-TERM AND MEDIUM-TERM NOTES -- 24.8%
--------------------------------------------------------------------------------------------------
AUTO - CARS/LIGHT TRUCKS -- 1.1%
5,000,000 DaimlerChrysler NA Holding,
Series C, 6.56% due 11/22/00(5) A-1/P-1 $ 4,998,976
COMMERCIAL BANKS -- 6.0%
Bank One NA Illinois:
2,500,000 6.94% due 12/5/00 A-1/P-1 2,500,222
4,000,000 6.63% due 12/22/00(5) A-1/P-1 3,999,229
6,000,000 7.16% due 6/26/01 A-1/P-1 5,999,632
5,000,000 6.60% due 10/24/01 A-1/P-1 5,000,000
10,000,000 Wachovia Bank NA,
6.59% due 11/16/00 A-1+/P-1 10,000,000
------------
27,499,083
DIVERSIFIED FINANCIAL SERVICES -- 1.1%
5,000,000 Citigroup Inc., Series A,
6.58% due 11/6/00(5) A-1+/P-1 5,000,000
FINANCE - CONSUMER LOANS -- 2.6%
Household Finance Corp.:
7,000,000 6.63% due 12/29/00(5) A-1/P-1 7,000,000
5,000,000 6.71% due 1/22/01(5) A-1/P-1 4,996,350
------------
11,996,350
</TABLE>
4 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 6
ING MONEY MARKET FUND (continued)
<TABLE>
<CAPTION>
Principal
Amount Ratings(1) Value
--------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCE - INVESTMENT BANKER/BROKER -- 1.3%
Merrill Lynch & Co.:
$2,000,000 Series B, 6.74% due 2/7/01 AA-/Aa3 $ 1,999,949
4,000,000 Series B, 6.77% due 2/23/01 AA-/Aa3 4,000,000
------------
5,999,949
FINANCE - OTHER SERVICES -- 1.6%
7,000,000 Caterpillar Financial Services Corp.,
Series F, 6.75% due 11/22/00(5) A/A2 7,003,417
FOOD - MISCELLANEOUS/DIVERSIFIED -- 1.5%
7,000,000 General Mills Inc., Series F,
6.68% due 2/9/01 A-/A3 6,999,139
MONEY CENTER BANKS -- 1.1%
5,000,000 Bank of America Corp.,
5.34% due 2/9/01 A+/Aa2 4,979,208
RETAIL - DISCOUNT -- 1.3%
6,000,000 Wal-Mart Stores, Inc.,
5.955% due 6/1/01 AA/Aa2 5,951,838
SPECIAL PURPOSE ENTITY -- 1.1%
5,000,000 Unilever Capital Corp.,
6.68313% due 12/7/00(3)(5) A-1/P-1 5,000,000
SUPER-REGIONAL BANKS - US -- 2.2%
Bank of America NA:
5,000,000 6.80% due 2/5/01 AA-/Aa1 5,000,000
5,000,000 7.12% due 6/21/01 AA-/Aa1 5,000,000
------------
10,000,000
TELEPHONE - INTEGRATED -- 1.5%
7,000,000 SBC Communications Inc.,
6.63% due 11/15/00(3)(5) AA-/Aa3 7,000,000
TELEPHONE - LONG DISTANCE -- 2.4%
AT&T Corp.:
5,000,000 6.56% due 11/8/00(3)(5) A-1/P-1 4,999,832
6,000,000 6.65% due 11/20/00(3)(5) A-1/P-1 6,000,000
------------
10,999,832
TOTAL SHORT-TERM AND MEDIUM-TERM NOTES
(Cost -- $113,427,792) $113,427,792
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Ratings(1) Value
--------------------------------------------------------------------------------------------------
<S> <C> <C>
CERTIFICATE OF DEPOSIT -- 11.6%
--------------------------------------------------------------------------------------------------
$ 6,000,000 Canadian Imperial Bank
NY Yankee, 6.62% due 12/27/00 A-1+/P-1 $ 6,000,207
4,000,000 Deutsche Bank NY Yankee,
6.89% due 8/20/01 A-1+/P-1 3,998,856
5,000,000 First Union National Bank,
7.00% due 4/30/01 A-1+/P-1 5,003,442
4,000,000 Societe Generale Euro,
6.71% due 2/12/01 A-1+/P-1 3,996,951
10,000,000 Toronto Dominion Bank Ltd.
Euro, 6.56% due 12/20/00 A-1+/P-1 10,000,134
7,000,000 Toronto Dominion Bank Ltd.
Yankee, 7.20% due 5/9/01 A-1+/P-1 7,000,000
7,000,000 UBS AG Stamford CT Yankee,
6.875% due 3/27/01 A-1+/P-1 6,999,602
10,000,000 Wachovia Bank NA,
6.54% due 12/7/00 A-1+/P-1 10,000,000
TOTAL CERTIFICATE OF DEPOSIT
(Cost -- $52,999,192) $ 52,999,192
--------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 4.5%
--------------------------------------------------------------------------------------------------
20,750,000 State Street Bank & Trust Co., 6.540%
due 11/1/2000; Proceeds at maturity --
$20,753,770; (Fully collateralized by
Federal Home Loan Bank, 5.77% due
4/27/2004; Market value -- $21,168,394)
(Cost -- $20,750,000) $ 20,750,000
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 100.0%
--------------------------------------------------------------------------------------------------
(Cost -- $457,005,770)(6) $457,005,770
</TABLE>
1. Credit ratings are provided by Standard & Poor's Rating Group and Moody's
Investors Service, Inc. (unaudited).
2. Rate shown is yield to maturity on date of purchase in effect at October 31,
2000.
3. 4-2 commercial paper or 144a issue. These securities may be sold to qualified
institutional investors only. Total value of securities amounted to
$162,218,634 or 35.4% of net assets.
4. Extendible commercial note. These issues are considered to be illiquid, total
value amounted to $9,924,205 or 2.2% of net assets.
5. Floating rate security, date shown is the next interest reset date. Interest
rate shown is the current rate.
6. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Money Market Fund Annual Report / October 31, 2000 5
<PAGE> 7
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.
SHORT-TERM RATINGS
A-1 - Standard & Poor's highest rating for demand obligations and
commercial paper. It indicates that the degree of safety regarding
timely payment is strong. Those issues determined to possess
extremely strong safety characteristics will be denoted with a plus
(+) designation.
A-2 - Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high
as for issues designated "A-1."
P-1 - Moody's highest commercial paper rating. Issuers rated Prime-1
("P-1") have a superior ability for repayment of senior short-term
promissory obligations.
P-2 - Issuers rated Prime-2 ("P-2") have a strong ability for repayment of
senior short-term promissory obligations.
NR - Indicates that the bond is not rated by Standard & Poor's or Moody's.
6 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 8
FINANCIAL HIGHLIGHTS
ING MONEY MARKET FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class A Shares(1) Class B Shares(1) Class C Shares(1)
throughout each period: 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 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
From investment operations:(4)
Net investment income 0.06 0.04 0.05 0.03 0.05 0.03
Net realized and unrealized gain -- -- -- -- -- --
-------- -------- ------ ------ ------ ------
Total from investment operations 0.06 0.04 0.05 0.03 0.05 0.03
-------- -------- ------ ------ ------ ------
Distributions paid from investment income (0.06) (0.04) (0.05) (0.03) (0.05) (0.03)
-------- -------- ------ ------ ------ ------
Net asset value per share, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (in thousands) $440,651 $228,124 $2,706 $1,173 $2,035 $ 444
------------------------------------------------------------------------------------------------------------------------------------
Total investment return at net asset value(5) 5.70% 3.98%(6) 5.03% 3.31%(6) 5.03% 3.30%(6)
Ratios to average net assets:
Net expenses 0.74% 0.73%(7) 1.38% 1.41%(7) 1.39% 1.41%(7)
Gross expenses 1.42% 1.67%(7) 1.67% 1.79%(7) 1.67% 1.78%(7)
Net investment income 5.59% 4.59%(7) 4.93% 3.85%(7) 5.03% 3.89%(7)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding Class I Shares(2) Class X Shares(3)
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 $ 1.00 $ 1.00 $ 1.00 $ 1.00
From investment operations:(4)
Net investment income 0.06 0.00(8) 0.05 0.03
Net realized and unrealized gain -- -- -- --
------- ------ ------ ------
Total from investment operations 0.06 0.00(8) 0.05 0.03
------- ------ ------ ------
Distributions paid from investment income (0.06) (0.00)(8) (0.05) (0.03)
------- ------ ------ ------
Net asset value per share, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (in thousands) $12,061 $1,906 $ 382 $1,512
-------------------------------------------------------------------------------------------------------------
Total investment return at net asset value(5) 6.19% 0.28%(6) 5.03% 2.94%(6)
Ratios to average net assets:
Net expenses 0.28% 0.31%(7) 1.40% 1.41%(7)
Gross expenses 0.41% 0.59%(7) 1.68% 1.73%(7)
Net investment income 5.96% 5.29%(7) 4.69% 3.81%(7)
-------------------------------------------------------------------------------------------------------------
</TABLE>
1. Class A, B and C shares commenced operations on December 15, 1998.
2. Class I shares commenced offering on October 13, 1999.
3. Class X shares commenced offering on January 20, 1999.
4. Per share calculation is based on average number of shares outstanding during
the period.
5. Total return assumes reinvestment of all dividend and capital gain
distributions, if any, and does not reflect the deduction of the applicable
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 7.13% for the year ended 10/31/00 and
5.00% for the period ended 10/31/99. Total returns would be lower if the
Fund's expenses were not waived or reimbursed.
6. Not annualized.
7. Annualized.
8. Amount represents less than $0.01.
ING Money Market Fund Annual Report / October 31, 2000 7
<PAGE> 9
STATEMENT OF ASSETS & LIABILITIES
OCTOBER 31, 2000
<TABLE>
<S> <C>
ING MONEY MARKET FUND
--------------------------------------------------------------------------------
ASSETS:
Investments in securities, at cost $457,005,770
------------
Investments in securities, at value $457,005,770
Cash 85,971
Receivable for fund shares sold 562,811
Interest receivable 2,788,150
Prepaid expenses 34,283
------------
Total Assets 460,476,985
LIABILITIES:
Payable for fund shares redeemed 2,324,932
Dividend payable 9,984
Management fee payable (Note 3) 48,329
Distribution fee payable (Note 3) 44,185
Other accrued expenses 215,102
------------
Total Liabilities 2,642,532
--------------------------------------------------------------------------------
NET ASSETS $457,834,453
--------------------------------------------------------------------------------
Composition of Net Assets:
Par value of shares of beneficial interest $ 457,854
Capital paid in excess of par value 457,376,599
--------------------------------------------------------------------------------
NET ASSETS $457,834,453
--------------------------------------------------------------------------------
Class A Shares
Net Assets $440,650,792
Shares Outstanding 440,669,967
Net Asset Value Per Share (and redemption price) $ 1.00
Maximum Public Offering Price $ 1.00
Class B Shares
Net Assets $ 2,705,500
Shares Outstanding 2,705,627
Net Asset Value Per Share(1) $ 1.00
Class C Shares
Net Assets $ 2,034,792
Shares Outstanding 2,034,872
Net Asset Value Per Share(2) $ 1.00
Class I Shares
Net Assets $ 12,061,357
Shares Outstanding 12,061,974
Net Asset Value Per Share (and redemption price) $ 1.00
Class X Shares
Net Assets $ 382,012
Shares Outstanding 382,028
Net Asset Value Per Share(1) $ 1.00
</TABLE>
1. Redemption price is net asset value per share of Class B and X shares reduced
by a 5.00% CDSL if shares are redeemed within one year from purchase (See Note
3).
2. Redemption price is net asset value per share of Class C shares reduced by a
1.00% CDSL if shares are redeemed within one year from purchase (See Note 3).
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2000
<TABLE>
<S> <C>
ING MONEY MARKET FUND
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 23,674,422
------------
EXPENSES:
Distribution fees (Note 3) 1,795,994
Transfer agent fees (Note 3) 1,008,253
Management fee (Note 3) 932,291
Shareholder servicing fees (Note 3) 892,631
Registration fees 245,760
Reports to shareholders 73,132
Professional fees 69,011
Fund accounting fee 47,712
Custodian fee 29,727
Trustees' fees 9,270
Other expenses 28,021
------------
Total expenses 5,131,802
------------
Expenses waived by Manager
and Distributor (Note 3) (2,411,399)
------------
Net expenses 2,720,403
--------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 20,954,019
--------------------------------------------------------------------------------
REALIZED GAIN ON INVESTMENTS:
Realized gain from security transactions --
--------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 20,954,019
--------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
8 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 10
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended Period Ended
ING MONEY MARKET FUND October 31, 2000 October 31, 1999(1)
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income $ 20,954,019 $ 3,093,838
Net realized loss on investments -- --
------------- -------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 20,954,019 3,093,838
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares (19,815,480) (3,055,168)
Class B shares (135,706) (7,890)
Class C shares (53,814) (5,583)
Class I shares (946,158) (5,232)
Class X shares (22,875) (19,965)
------------- -------------
(20,974,033) (3,093,838)
CAPITAL SHARE TRANSACTIONS (NOTE 5):
Net proceeds from sale of shares
Class A shares 880,095,214 325,378,899
Class B shares 11,939,590 1,897,590
Class C shares 4,458,551 675,705
Class I shares 39,600,100 1,901,244
Class X shares 1,107,597 2,378,957
------------- -------------
937,201,052 332,232,395
Dividend reinvestments
Class A shares 19,495,251 3,010,550
Class B shares 120,224 7,368
Class C shares 38,998 5,450
Class I shares 863,004 5,232
Class X shares 21,226 19,653
------------- -------------
20,538,703 3,048,253
Cost of shares repurchased
Class A shares (687,044,099) (100,268,229)
Class B shares (10,526,772) (734,755)
Class C shares (2,907,002) (239,212)
Class I shares (30,307,606) --
Class X shares (2,258,570) (886,834)
------------- -------------
(733,044,049) (102,129,030)
------------- -------------
NET INCREASE IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 224,695,706 233,151,618
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS 224,675,692 233,151,618
--------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 233,158,761 7,143
--------------------------------------------------------------------------------
END OF PERIOD* $ 457,834,453 $ 233,158,761
--------------------------------------------------------------------------------
*Including net undistributed
investment income of: -- $ 20,014
</TABLE>
1. Commenced operations on December 15, 1998.
See Notes to Financial Statements.
ING Money Market Fund Annual Report / October 31, 2000 9
<PAGE> 11
OCTOBER 31, 2000
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ING Money Market Fund (the "Fund") is a separate investment portfolio of
the ING Funds Trust (the "Trust"). The Trust was organized as a Delaware
business trust on July 30, 1998 and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended,
as an open-end management investment company. The Trust consists of this
Fund and twenty-six other investment portfolios: ING U.S. Treasury Money
Market Fund, ING National Tax-Exempt Money Market Fund, ING Intermediate
Bond Fund, ING High Yield Bond Fund, ING International Bond Fund, ING
Mortgage Income Fund, ING National Tax-Exempt Bond Fund, ING Stable Value
Fund, ING Large Cap Growth Fund, ING Growth & Income Fund, ING Mid Cap
Growth Fund, ING Small Cap Growth Fund, ING Global Brand Names Fund, ING
International Equity Fund, ING European Equity Fund, ING Tax Efficient
Equity Fund, ING Tax Efficient Equity Value Fund, ING Focus Fund, ING
Global Information Technology Fund, ING Global Communications Fund, ING
Internet Fund, ING Internet Fund II, ING Balanced Fund, ING Emerging
Markets Equity Fund, ING Global Real Estate Fund and ING Quality of Life
Fund. The financial statements and financial highlights of the other funds
are presented in separate annual reports except for the ING U.S. Treasury
Money Market Fund, ING National Tax-Exempt Money Market Fund, ING Mortgage
Income Fund, ING Stable Value Fund, ING Tax Efficient Equity Value Fund,
ING Internet Fund II, ING Balanced Fund, ING Global Real Estate Fund and
ING Quality of Life Fund, which have not commenced operations. The Fund
offers five classes of shares, which have been designated to Class A, B, C,
I and X shares.
2. SIGNIFICANT ACCOUNTING POLICIES
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those
estimates.
SECURITY VALUATION The Fund uses the amortized cost method to value its
portfolio securities. The amortized cost method involves valuing a security
at its cost and amortizing any discount or premium over the period until
maturity.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME Investment transactions are
recorded on trade date. Realized gains and losses from security
transactions are calculated on the identified cost basis. Interest income
is recorded on an accrual basis. Discounts and premiums are treated as
adjustments to interest income and identified costs of investments over the
lives of the respective investments.
U.S. FEDERAL TAX STATUS The Fund intends to distribute substantially all of
its taxable income and to comply with the other requirements of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies. Accordingly, no provision for U.S. federal income
taxes is required. In addition, by distributing during each calendar year
substantially all of its ordinary income and capital gains, if any, the
Fund intends not to be subject to U.S. federal excise tax.
DIVIDENDS AND DISTRIBUTIONS The Fund declares daily dividends from net
investment income. Dividends are paid monthly, generally on the last
business day of each month. Distribution of net realized gains, if any,
will be declared and paid at least annually by the Fund.
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles.
EXPENSES Expenses directly attributable to a fund and a specific class are
charged to that fund or class, other expenses are allocated proportionately
among each fund within the Trust in relation to the net assets of each
fund, or on another reasonable basis.
3. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
MANAGER AND SUB-ADVISER ING Mutual Funds Management Co. LLC (the
"Manager"), a wholly-owned indirect subsidiary of ING Groep, N.V. ("ING
Group"), serves as the manager of the Fund pursuant to a Management
Agreement with the Trust. The Fund pays the Manager for its services under
the Management Agreement a fee, payable monthly, based on an annual rate of
0.25% of the average daily net assets of the Fund. The Manager has entered
into a Sub-Advisory Agreement with ING Investment Management LLC (the
"Sub-Adviser"), a wholly-owned indirect subsidiary of ING Group. Under the
Sub-Advisory Agreement, the Sub-Adviser has full investment discretion and
make all determinations with respect to the investment of the Fund's assets
and the purchase and sale of portfolio securities and other investments.
Pursuant to the Sub-Advisory Agreement, the Manager pays to the Sub-Adviser
a monthly fee based on an annual rate of 0.125% of the average daily net
assets of the Fund.
For the year ended October 31, 2000, the Manager was entitled to $932,291
and waived $500,057 of management fee. The Sub-Adviser was entitled to
$466,145 and waived $250,029 of sub-advisory fee.
10 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 12
DISTRIBUTION PLAN AND SHAREHOLDER SERVICING PLAN The Trust, on behalf of
the Fund, has adopted a Plan of Distribution pursuant to Rule 12b-1 under
the Investment Company Act. The Fund pays ING Funds Distributor, Inc. (the
"Distributor") monthly, based on an annual rate of up to 0.50% of average
daily net assets attributable to the Fund's Class A shares and 0.75% of
average daily net assets attributable to the Fund's Class B, C, and X
shares. The distribution fee for all classes may be used by the Distributor
for the purpose of financing any activity which is primarily intended to
result in the sale of shares of the Fund.
The Fund has adopted a Shareholder Servicing Plan pursuant to which it may
pay a service fee up to an annual rate of 0.25% of the Fund's average daily
net assets to various banks, trust companies, broker-dealers or other
financial organizations including the Manager and its affiliates.
For the year ended October 31, 2000, the Distributor waived part of the
distribution fees. The distribution fees the Distributor was entitled to
was $1,795,994 and the distribution fees waived was $1,375,764. The
shareholder servicing fee the Fund paid to the Distributor was $892,631.
In addition, there is a contingent deferred sales load ("CDSL") on Class B,
C and X shares, which applies if redemption occurs within six years of
purchase for the Class B and X shares and within one year of purchase for
the Class C shares.
For the year ended October 31, 2000, CDSL's paid to the Distributor were
approximately $29,675 for Class B shares, $2,596 for Class C shares and
$236 for Class X shares.
OTHER TRANSACTIONS WITH AFFILIATES ING Fund Services Co. LLC ("ING Fund
Services") has entered into a Fund Services Agreement with the Fund
pursuant to which ING Fund Services will perform or engage third parties to
perform transfer agency, fund accounting, account services and other
services. Under the Fund Services Agreement, the Fund may pay ING Fund
Services up to $40,000 for fund accounting services plus out of pocket
expenses, $17 per account for transfer agent services plus out of pocket
expenses and up to 0.25% of the Fund's average daily net assets annually
for account servicing activities. For the year ended October 31, 2000, ING
Fund Services waived part of the account servicing fees. The fees ING Fund
was entitled to was $892,631 and the fees waived was $535,578.
4. REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements with U.S. banks or
broker/dealers. A repurchase agreement is a transaction in which the
seller of a security commits itself at the time of the sale to repurchase
that security from the buyer at a mutually agreed upon time and price. The
Fund will always receive and maintain securities as collateral whose market
value, including accrued interest, will equal or exceed the repurchase
price. 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.
5. 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
Fund has the ability to issue multiple classes of shares. Each share of a
class represents an identical legal interest in the Fund and has the same
rights, except that each class bears certain expenses specifically related
to the distribution of its shares.
ING Money Market Fund Annual Report / October 31, 2000 11
<PAGE> 13
OCTOBER 31, 2000
NOTES TO FINANCIAL STATEMENTS
(continued)
Transactions in shares of each class were as follows:
<TABLE>
<CAPTION>
Year Ended October 31, 2000 Period Ended October 31, 1999
--------------------------- -----------------------------
ING MONEY MARKET FUND Shares Amount Shares Amount
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A Shares(1)
Shares sold 880,095,214 $ 880,095,214 325,378,899 $ 325,378,899
Shares issued on reinvestment 19,495,251 19,495,251 3,010,550 3,010,550
Shares redeemed (687,044,099) (687,044,099) (100,268,229) (100,268,229)
------------ ------------- ------------ -------------
Net increase 212,546,366 $ 212,546,366 228,121,220 $ 228,121,220
-----------------------------------------------------------------------------------------------------
Class B Shares(1)
Shares sold 11,939,590 $ 11,939,590 1,897,590 $ 1,897,590
Shares issued on reinvestment 120,224 120,224 7,368 7,368
Shares redeemed (10,526,771) (10,526,772) (734,755) (734,755)
------------ ------------- ------------ -------------
Net increase 1,533,043 $ 1,533,042 1,170,203 $ 1,170,203
-----------------------------------------------------------------------------------------------------
Class C Shares(1)
Shares sold 4,458,551 $ 4,458,551 675,705 $ 675,705
Shares issued on reinvestment 38,998 38,998 5,450 5,450
Shares redeemed (2,907,001) (2,907,002) (239,212) (239,212)
------------ ------------- ------------ -------------
Net increase 1,590,548 $ 1,590,547 441,943 $ 441,943
-----------------------------------------------------------------------------------------------------
Class I Shares(2)
Shares sold 39,600,100 $ 39,600,100 1,901,244 $ 1,901,244
Shares issued on reinvestment 863,004 863,004 5,232 5,232
Shares redeemed (30,307,606) (30,307,606) -- --
------------ ------------- ------------ -------------
Net increase 10,155,498 $ 10,155,498 1,906,476 $ 1,906,476
-----------------------------------------------------------------------------------------------------
Class X Shares(3)
Shares sold 1,107,597 $ 1,107,597 2,378,957 $ 2,378,957
Shares issued on reinvestment 21,226 21,226 19,653 19,653
Shares redeemed (2,258,571) (2,258,570) (886,834) (886,834)
------------ ------------- ------------ -------------
Net increase (decrease) (1,129,748) $ (1,129,747) 1,511,776 $ 1,511,776
-----------------------------------------------------------------------------------------------------
</TABLE>
(1) Class A, B and C shares commenced operations on December 15, 1998.
(2) Class I shares commenced offering on October 13, 1999.
(3) Class X shares commenced offering on January 20, 1999.
6. SUBSEQUENT EVENTS
EFFECTIVE NOVEMBER 1, 2000, the Fund 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 Fund, and the distribution
agreement between the Fund and ING Funds Distributor, Inc. terminated. ING
Pilgrim Securities is located at 7337 East Doubletree Ranch Road,
Scottsdale, Arizona 85258.
12 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 14
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF ING FUNDS TRUST:
We have audited the accompanying statement of assets and liabilities,
including the schedule of investments, of ING Money Market Fund (one of the
portfolios constituting ING Funds Trust) (the "Fund") as of October 31, 2000,
and the related statement of operations for the year then ended and the
statements of changes in net assets and financial highlights for each of the two
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's 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
Fund at October 31, 2000, the results of its operations for the year then ended
and the changes in its net assets and its financial highlights for each of the
two years in the period then ended in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
December 5, 2000
ING Money Market Fund Annual Report / October 31, 2000 13
<PAGE> 15
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
State Street Bank and Trust Company
801 Pennsylvania Street
Kansas City, MO 64105
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-ADVISER
ING Investment Management LLC
5780 Powers Ferry Road, N.W., Suite 300
Atlanta, GA 30327
14 ING Money Market Fund Annual Report / October 31, 2000
<PAGE> 16
ING MUTUAL FUNDS
A LIST OF FUND OBJECTIVES AND PRIMARY PORTFOLIOS
ING OFFERS A DIVERSE FUND FAMILY TO HELP MEET YOUR NEEDS AND LONG-TERM FINANCIAL
GOALS. THESE INCLUDE U.S. STOCK, U.S. BOND AND A VARIETY OF GLOBAL AND
INTERNATIONAL FUNDS. TO LEARN WHICH ING MUTUAL FUNDS BEST MEET YOUR INVESTMENT
OBJECTIVES, CONTACT YOUR FINANCIAL ADVISOR FOR ADDITIONAL INFORMATION, INCLUDING
A PROSPECTUS. YOU CAN ALSO CALL US TOLL FREE AT 1-800-334-3444 OR VISIT OUR WEB
SITE AT www.ingfunds.com
STOCK FUNDS
<TABLE>
<CAPTION>
FUND OBJECTIVE PRIMARY PORTFOLIO
<S> <C> <C>
------------------------------------------------------------------------------------------------------------------------------------
ING Internet Fund Capital appreciation A non-diversified portfolio of Internet
technology companies
------------------------------------------------------------------------------------------------------------------------------------
ING Small Cap Growth Fund Growth of capital Primarily small cap companies
------------------------------------------------------------------------------------------------------------------------------------
ING Focus Fund Growth of capital A non-diversified portfolio of stocks
------------------------------------------------------------------------------------------------------------------------------------
ING Mid Cap Growth Fund Growth of capital Primarily mid cap companies
------------------------------------------------------------------------------------------------------------------------------------
ING Large Cap Growth Fund Growth of capital Primarily large cap companies
------------------------------------------------------------------------------------------------------------------------------------
ING Tax Efficient Equity Fund High total return A diversified portfolio of stocks
------------------------------------------------------------------------------------------------------------------------------------
ING Growth &Income Fund High total return Primarily income-producing stocks
------------------------------------------------------------------------------------------------------------------------------------
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 Below-investment grade corporate bonds
and total return
------------------------------------------------------------------------------------------------------------------------------------
ING Intermediate Bond Fund High current income U.S. government and high-quality corporate bonds
------------------------------------------------------------------------------------------------------------------------------------
ING National Tax-Exempt Bond Fund High current tax-exempt Diversified portfolio of municipal bonds
income
------------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS
------------------------------------------------------------------------------------------------------------------------------------
ING Money Market Fund High level of 1st tier commercial paper
current income
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SHARES OF ING FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF ANY BANK, ARE NOT
GUARANTEED BY ANY BANK, ARE NOT INSURED BY THE FDIC OR ANY OTHER AGENCY, AND
INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED.
<PAGE> 17
AMERICAS ING FUNDS
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.0000.12/00
--------------------------
[ING FUNDS LOGO] BULK RATE
U.S. POSTAGE
PAID
Mailed from Zip Code 07303
Permit No. 412
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