<PAGE> 1
ING VARIABLE INSURANCE TRUST
ING Global Brand Names Fund Semi-Annual Report / June 30, 2000
[GLOBAL INTERNATIONAL LOGO]
ING AMERICAS
[ING LOGO]
<PAGE> 2
TABLE OF CONTENTS
FUND INFORMATION AT YOUR FINGERTIPS
WE ARE PLEASED TO PROVIDE THIS DETAILED REVIEW OF THE ING GLOBAL BRAND NAMES
FUND FOR THE PERIOD THAT ENDED JUNE 30, 2000. TO HELP ANALYZE YOUR FUND WE HAVE
BROKEN DOWN THE REPORT INTO A NUMBER OF EASY-TO-FOLLOW SECTIONS. LISTED BELOW IS
A TABLE OF CONTENTS AND DESCRIPTION OF EACH SECTION.
PAGE 2 FUND SUMMARY
A summary of the Fund's performance record and portfolio composition, and an
interview with the Fund's portfolio manager.
PAGE 3 SCHEDULE OF INVESTMENTS
A complete listing of the securities in the Fund's portfolio as of June 30,
2000. This section also includes the number of shares or principal amount, and
market value as of the end of the reporting period.
PAGE 4 FINANCIAL HIGHLIGHTS
A description of the financial factors that affected the 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.
PAGE 4 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 5 STATEMENT OF OPERATIONS
A listing of the Fund's investment income, expenses and gains or losses on
securities, as well as appreciation or depreciation from portfolio holdings.
PAGE 5 STATEMENT OF CHANGES IN NET ASSETS
A reporting of the increase or decrease in the 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 6-8 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.
The views expressed herein are current to the date of this report. These views
and composition of the Fund's portfolio are subject to change at any time.
<PAGE> 3
A LETTER FROM THE PRESIDENT
[PHOTO OF JOHN J. PILEGGI]
JOHN J. PILEGGI
President & CEO
ING Variable Insurance Trust
"DESPITE THE DECLINE IN STOCK PRICES, THE BASIC FUNDAMENTALS OF U.S. AND MANY
FOREIGN ECONOMIES REMAINED SOUND."
DEAR FELLOW SHAREHOLDERS,
We are pleased to present this first Semi-Annual Report for the ING Variable
Insurance Trust-ING Global Brand Names Fund. This report covers the Fund's
activity from its commencement of operations on April 28, 2000 through June 30,
2000. Future reports will be sent to you every six months.
We'll begin with a review of the financial markets during the reporting
period, followed by detailed information about your investment.
A VOLATILE STOCK MARKET The global equity markets were extremely volatile during
the two month period covered in this report. In May, the markets continued the
long expected correction that began in mid-March. While the brunt of the decline
was felt by "new economy" technology stocks, many traditional, well established
firms were also negatively affected. It was widely felt that, while the
correction was significant, it was much more of a market event than an economic
event. Despite the decline in stock prices, the basic fundamentals of the U.S.
and many foreign economies remained sound.
The markets then experienced a significant rebound in June. Economic
indicators in the U.S., including retail sales and consumer prices, were
relatively benign during the month, suggesting a moderation of economic growth.
Investors applauded the apparent slowdown, as they believed it may signal an end
to interest hikes by the Federal Reserve Board (the "Fed"). Then, after
instituting six consecutive hikes, the Fed chose to hold rates steady at the end
of June. However, it warned that future hikes would be necessary if growth or
inflationary pressures resumed.
The rebound in stock prices occurred not only in the U.S., but in many
international markets as well. Beaten down technology stocks were among the
sectors that experienced the most significant gains.
LOOKING AHEAD The last two months have been an eventful period in the financial
markets, one that we think magnifies the value of professional investment
management and advice. While short-term volatility may continue to make
headlines, we believe those who maintain a broadly diversified portfolio and
take a long-term investment approach will be rewarded over time.
I would like to thank you for your investment with ING Global Brand Names
Fund, and we look forward to serving your needs in the years to come. Thank you
for your confidence in us -- we work to earn it each day.
Sincerely,
/s/ John J. Pileggi
John J. Pileggi
President & CEO
July 17, 2000
ING Global Brand Names Fund Semi-Annual Report / June 30, 2000 1
<PAGE> 4
Data as of 6/30/00
ING GLOBAL BRAND NAMES FUND
FOR INVESTORS SEEKING LONG-TERM CAPITAL APPRECIATION
ASSET ALLOCATION(1)
[PIE CHART]
Common Stock 93.5%
Short-Term Investments 6.5
TOP TEN HOLDINGS(1)
Microsoft Corp. 6.2%
----------------------------------------
Intel Corp. 5.9
----------------------------------------
The Coca-Cola Co. 5.6
----------------------------------------
L'Oreal SA 5.3
----------------------------------------
Heineken NV 5.2
----------------------------------------
Time Warner Inc. 4.6
----------------------------------------
Johnson & Johnson 4.1
----------------------------------------
McDonald's Corp. 3.7
----------------------------------------
Nokia Oyj 3.4
----------------------------------------
PepsiCo, Inc. 3.4
REGIONAL BREAKDOWN(1)
North America 64.5%
----------------------------------------
Europe 26.4
----------------------------------------
Pacific Rim 9.1
TOP FIVE COUNTRIES(1)
United States 64.5%
----------------------------------------
Netherlands 9.5
----------------------------------------
France 7.2
----------------------------------------
Japan 6.6
----------------------------------------
Finland 3.2
TOP FIVE INDUSTRIES(1)
Cosmetics & Toiletries 11.7%
----------------------------------------
Beverages: Non-Alcoholic 8.4
----------------------------------------
Brewery 7.4
----------------------------------------
Multimedia 6.9
----------------------------------------
Applications Software 5.8
CUMULATIVE TOTAL RETURN
ING Global Brand Names Fund(2) MSCI World Index(3)
Since Inception(4) 1.40% 0.56%
--------------------------------------------------------------------------------
1. Holdings are subject to change and are dollar-weighted based on invested
assets. 2. Total return includes change in share value and reinvestment of
distributions and is not annualized. Past performance is historical and is no
guarantee of future results. 3. The MSCI World Index is average weighted by
market value of the performance of approximately 1450 securities representing 20
countries. The average company in the index has a market capitalization of about
$3.5 billion. The index is unmanaged with no sales charges or expenses and is a
total return index with reinvestment of distributions. 4. Commenced operations
on April 28, 2000.
MANAGER'S OVERVIEW
[PHOTO OF HERMAN KLEEVEN]
Herman Kleeven
Portfolio Management
Team Leader
OBJECTIVE
CAPITAL APPRECIATION through investment in a non-diversified portfolio of
multi-national companies with well-known brands.
"WE EXPECT THAT CONTINUING EVIDENCE FOR A SOFT LANDING WILL SUPPORT THE EQUITY
MARKETS TOWARDS THE END OF THE YEAR.
QUESTION: How did the Trust perform during the reporting period?
ANSWER: Despite the volatility in the financial markets, the Trust performed
rather well, outpacing the return of its benchmark, the MSCI World Index.
QUESTION: What were some of the factors that affected the Trust during the
reporting period?
ANSWER: The reporting period was much like a rollercoaster ride. In May, a
continuation of rising interest rates and inflationary concerns unsettled
investors and caused the equity markets to continue their downward spiral
that began in mid-March. However, in June, a series of weaker economic
numbers suggested that the economy was responding to the Federal Reserve
rate hikes. Investors viewed this news favorably and stocks staged an
impressive rebound. Another factor worth noting was the performance of the
euro currency. Throughout much of the year the euro seemed to be in a free
fall, but later in period it began to recover, due to slowing U.S. economic
growth.
QUESTION: What were some of the areas that enhanced performance?
ANSWER: Defensive "old economy" stocks benefited from the shift away from
Technology Media and Telecommunications (TMT) stocks. The Trust's
performance was supported by strong price increases in holdings such as
Johnson & Johnson, Pepsi, L'Oreal, Philip Morris, Heineken and Foster's.
QUESTION: Were there any areas that detracted from results?
ANSWER: There was a negative contribution from technology stocks such as Cisco
Systems, America Online, Microsoft, Yahoo, Sony and Motorola. Motorola's
stock price has been suffering since its April profit warning and concern
that a lack of cell-phone components will hurt profits. In addition, our
holding in Honda detracted from results, as signs that U.S. economic growth
may be slowing means that we may have seen a peak in U.S. car sales.
QUESTION: What is your outlook for the Trust going forward?
ANSWER: Market pressures have eliminated many of the speculative excesses
evident in recent market activity. Investors are increasingly focussing on
the question whether the expected slowdown in the U.S. will constitute a
hard or a soft landing. A soft landing is still the central scenario, but
this has not stopped investors from selling off cyclical stocks in June. We
expect the pattern of a directionless market to continue in the next few
months, until investors have a clearer picture of which scenario will hold.
We expect that continuing evidence for a soft landing will support the
equity markets towards the end of the year.
SEE PAGE 3 FOR FINANCIAL DETAILS.
[ING LOGO]
2 ING Global Brand Names Fund Semi-Annual Report / June 30, 2000
<PAGE> 5
JUNE 30, 2000 (UNAUDITED)
SCHEDULE OF INVESTMENTS
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
COMMON STOCK -- 93.5%
AUSTRALIA -- 2.5%
<S> <C>
48,700 Foster's Brewing Group Ltd. $ 136,888
FINLAND -- 3.2%
3,500 Nokia Oyj 178,610
FRANCE -- 7.2%
320 L'Oreal SA 277,107
304 Louis Vuitton Moet Hennessy 125,356
----------
402,463
GERMANY -- 2.2%
776 Adidas-Salomon AG 42,823
2,111 Volkswagen AG 80,619
----------
123,442
JAPAN -- 6.6%
1,000 Canon Inc. 49,767
1,000 Fuji Photo Film Co., Ltd. 40,907
3,000 Honda Motor Co., Ltd. 102,078
1,400 Sony Corp. 130,638
1,000 Toyota Motor Corp. 45,525
----------
368,915
NETHERLANDS -- 9.5%
1,300 Gucci Group NV -- NY Registered Shares 123,175
4,480 Heineken NV 272,676
2,880 Unilever NV -- Share Certificates 132,122
----------
527,973
SWEDEN -- 2.0%
5,500 Telefonaktiebolaget
LM Ericsson AB -- B Shares 108,828
SWITZERLAND -- 2.3%
64 Nestle SA -- Registered Shares 128,090
UNITED STATES -- 58.0%
800 America Online, Inc.(1) 42,200
2,994 American Express Co. 156,062
1,300 Cisco Systems, Inc.(1) 82,631
5,100 The Coca-Cola Co. 292,931
2,750 Colgate-Palmolive Co. 164,656
2,568 Compaq Computer Corp. 65,644
3,400 Dell Computer Corp.(1) 167,662
2,100 Ford Motor Co. 90,300
4,300 The Gillette Co. 150,231
2,300 Intel Corp. 307,481
2,100 Johnson & Johnson 213,938
5,800 McDonald's Corp. 191,038
4,000 Microsoft Corp.(1) 320,000
3,000 Motorola, Inc. 87,188
3,952 PepsiCo, Inc. 175,617
2,612 Philip Morris Cos. Inc. 69,381
988 The Procter & Gamble Co. 56,563
3,120 Time Warner Inc. 237,120
275 Visteon Corp.(1) 3,334
3,800 The Walt Disney Co. 147,488
1,416 Wm. Wrigley Jr. Co. 113,546
736 Yahoo! Inc.(1) 91,172
----------
3,226,183
TOTAL COMMON STOCK
(Cost -- $5,125,501) $5,201,392
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Value
<S> <C>
REPURCHASE AGREEMENT -- 6.5%
$359,000 State Street Bank & Trust Co., 6.55%
due 7/3/2000; Proceeds at maturity -- $359,196;
(Fully collateralized by Fannie Mae, 6.40% due
12/21/2001; Market value -- $368,150)
(Cost -- $359,000) $ 359,000
TOTAL INVESTMENTS -- 100.0%
(Cost -- $5,484,501)(2) $5,560,392
</TABLE>
1. Non-income producing security.
2. Aggregate cost for Federal income tax purposes is substantially the same.
See Notes to Financial Statements.
ING Global Brand Names Fund Semi-Annual Report / June 30, 2000 3
<PAGE> 6
FINANCIAL HIGHLIGHTS
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
For a share of beneficial interest outstanding throughout the period:
6/30/00(1,2)
-------------------------------------------------------------------------------
<S> <C>
Net asset value per share, beginning of period $ 10.00
From investment operations:
Net investment income 0.01
Net realized and unrealized gains(3) 0.13
---------
Total from investment operations 0.14
---------
Distributions paid from investment income --
---------
Net asset value per share, end of period $ 10.14
NET ASSETS, END OF PERIOD (in thousands) $ 5,577
Total investment return at net asset value(4,5) 1.40%
Ratios to average net assets:(6)
Net expenses 1.23%
Gross expenses 4.21%
Net investment income 0.34%
Portfolio turnover rate(5) 2.32%
-------------------------------------------------------------------------------
</TABLE>
1. Commenced operations on April 28, 2000.
2. Unaudited.
3. Includes gains and losses on foreign currency transactions.
4. Total return assumes reinvestment of all dividend and capital gain
distributions, if any. Total return would be lower if part of the Fund's
expenses were not waived or reimbursed.
5. Not annualized.
6. Annualized.
STATEMENT OF ASSETS & LIABILITIES
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
ING GLOBAL BRAND NAMES FUND
--------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities, at cost $5,125,501
----------
Investments in securities, at value $5,201,392
Repurchase agreement, at value 359,000
Cash 1,032
Receivable for investment securities sold 15,859
Dividend and interest receivables 4,080
Reimbursement from Manager (Note 3) 18,811
----------
Total Assets 5,600,174
LIABILITIES:
Management fee payable (Note 3) 1,311
Distribution fee payable (Note 3) 655
Payable for open foreign currency contracts (Note 6) 79
Other accrued expenses 21,129
----------
Total Liabilities 23,174
NET ASSETS $5,577,000
Composition of Net Assets:
Par value of shares of beneficial interest $ 550
Capital paid in excess of par value 5,496,408
Accumulated net investment income 2,819
Accumulated net realized gain 1,213
Net unrealized appreciation of
investments and foreign currencies 76,010
NET ASSETS $5,577,000
Shares Outstanding 550,107
Net Asset Value, per share $ 10.14
</TABLE>
See Notes to Financial Statements.
4 ING Global Brand Names Fund Semi-Annual Report / June 30, 2000
<PAGE> 7
STATEMENT OF OPERATIONS
For The Period Ended June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
ING Global Brand Names Fund(1)
--------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Dividend $ 12,618
Interest 2,085
Less: foreign withholding tax (1,179)
--------
Total income 13,524
EXPENSES:
Management fee (Note 3) 8,625
Fund accounting fee 7,667
Trustee fee 4,200
Professional fees 3,772
Custodian fee 3,699
Distribution fee (Note 3) 2,156
Transfer agent fee (Note 3) 2,156
Reports to shareholders 1,250
Registration fee 765
Other expenses 2,000
--------
Total expenses 36,290
--------
Expenses waived and reimbursed by
Manager and Distributor (Note 3) (25,711)
--------
Net expenses 10,579
NET INVESTMENT INCOME 2,945
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES (NOTE 4):
Realized gain (loss) from:
Security transactions 1,213
Foreign currency transactions (126)
NET REALIZED GAIN 1,087
Net change in unrealized appreciation from:
Investments 75,891
Foreign currencies 119
NET CHANGE IN UNREALIZED APPRECIATION 76,010
Net realized and unrealized gain on investments
and foreign currencies 77,097
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 80,042
</TABLE>
1. Commenced operations on April 28, 2000.
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
For The Period Ended June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
ING GLOBAL BRAND NAMES FUND(1)
--------------------------------------------------------------------------------
<S> <C>
INCREASE IN NET ASSETS:
Net investment income $ 2,945
Net realized gain on investments and foreign currencies 1,087
Net change in unrealized appreciation 76,010
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS 80,042
-----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income --
CAPITAL SHARE TRANSACTIONS (NOTE 8):
Net proceeds from sale of shares 5,447,017
Dividend reinvestments --
Cost of shares repurchased (59)
-----------
NET INCREASE IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 5,446,958
INCREASE IN NET ASSETS 5,527,000
NET ASSETS:
Beginning of period 50,000
END OF PERIOD* $ 5,577,000
*Including net undistributed investment income of: $ 2,819
</TABLE>
1. Commenced operations on April 28, 2000.
See Notes to Financial Statements.
ING Global Brand Names Fund Semi-Annual Report / June 30, 2000 5
<PAGE> 8
June 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
ING Global Brand Names Fund is a separate managed portfolio (the "Fund") of
the ING Variable Insurance Trust (the "Trust"). The Trust was organized as a
Delaware business trust on July 15, 1999 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 Fund and seven other managed portfolios: the ING Large Cap Growth
Fund, ING Growth & Income Fund, ING International Equity Fund, ING Income
Allocation Fund, ING Balanced Allocation Fund, ING Growth Allocation Fund,
and ING Aggressive Growth Allocation Fund, which have not commenced
operations. The Fund commenced operations on April 28, 2000. Shares of the
Trust are offered to separate accounts as an investment medium for variable
contracts issued by life insurance companies.
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 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 closing bid price 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 on the basis of
prices provided by an independent 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, which
constitutes fair value as determined by the Board of Trustees.
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 Fund 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 Fund does not isolate the portion of operations resulting from changes
in foreign exchange rates on investments from the fluctuations arising from
changes in market prices of foreign securities held. Such fluctuations are
included in net realized and unrealized gain or loss from investments. Net
realized exchange gain or loss from foreign currency transactions represent
net foreign exchange gain or loss from forward foreign currency contracts,
deposition of foreign currencies, currency gain or loss realized between the
trade and settlement dates on security transactions, and the difference
between the amount of net investment income recorded on the Fund's
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 Fund is 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
the 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.
6 ING Global Brand Names Fund Semi-Annual Report / June 30, 2000
<PAGE> 9
Risks may arise from forward foreign currency exchange contracts with
respect to the potential inability of counterparties to meet the terms of
their contracts. A forward foreign currency exchange contract may also limit
any potential gain which might result should the value of such currency
increase.
U.S. FEDERAL TAX STATUS 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.
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 Fund declares and pays annually
substantially all of its net investment income. 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 the Fund are charged to the Fund,
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 INVESTMENT MANAGER AND
SUB-ADVISER ING Mutual Funds Management Co. LLC (the "Investment 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 Trust pays the Investment Manager for its services under the
Management Agreement a fee, payable monthly, based on an annual rate of
1.00% of the average daily net assets of the Fund. The Investment Manager
has entered into a Sub-Advisory Agreement with ING Investment Management
Advisors B.V. (the "Sub-Adviser") which is 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 Investment Manager pays to the Sub-Adviser a monthly fee based on an
annual rate of 0.50% of the average daily net assets of the Fund.
The Investment Manager has entered into expense limitation contracts with
the Fund, under which it will limit expenses of the Fund, excluding
interest, taxes, brokerage and extraordinary expenses through December 31,
2000. Fee waivers and/or reimbursements by the Investment Manager may vary
in order to achieve such contractually obligated expense limit.
For the period ended June 30, 2000, the Investment Manager was entitled to
$8,625 and waived $6,038 of management fee. The Sub-Adviser was entitled to
$4,313 and waived $3,019 of sub-advisory fee.
In addition, for the period ended June 30, 2000, the Investment Manager has
agreed to reimburse expenses amounting to $18,811 for the Fund.
DISTRIBUTION 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 0.25% of the Fund's average daily net assets. The
distribution fee 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.
For the period ended June 30, 2000, the Distributor voluntarily waived part
of the distribution fee. The distribution fee the Distributor was entitled
to was $2,156 and the distribution fee waived was $862.
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 and up to 0.25% of the Fund's average
daily net assets annually for account servicing activities.
All officers and one trustee of the Trust are employees of the Investment
Manager.
ING Global Brand Names Fund Semi-Annual Report / June 30, 2000 7
<PAGE> 10
June 30, 2000 (unaudited)
NOTES TO FINANCIAL STATEMENTS
(continued)
4. INVESTMENTS IN SECURITIES
For the period ended June 30, 2000, the aggregate cost of purchases and
proceeds from sales of investments (including maturities, but excluding
short-term securities) and the aggregate gross unrealized appreciation and
depreciation of investments for U.S. federal income tax purpose were as
follows:
<TABLE>
<CAPTION>
Fund Name Purchases Sales Appreciation Depreciation Net Appreciation
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ING Global Brand Names Fund $5,240,000 $115,712 $349,276 $273,385 $75,891
</TABLE>
5. CONCENTRATION OF RISKS
FOREIGN SECURITIES The Fund may invest in foreign securities. Investments in
foreign securities may entail risks not present in domestic investments.
Since investments of securities are denominated in foreign currencies,
changes in the relationship of these foreign currencies to the U.S. dollar
can significantly affect the value of the investments and earnings of the
Fund. Foreign investments may also subject the Fund to foreign government
exchange restrictions, expropriation, taxation or other political, social or
economic developments, as well as from movements in currency, security value
and interest rate, all of which could affect the market and/or credit risk
of the investments.
NON-DIVERSIFIED The Fund is classified as a non-diversified investment
company under the Investment Company Act, which means that the 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 the Fund's share price to fluctuate more than that of a
diversified investment company.
6. FORWARD FOREIGN CURRENCY CONTRACTS
At June 30, 2000, the 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 loss on the contracts
reflected in the accompanying financial statements were as follows:
ING GLOBAL BRAND NAMES FUND
<TABLE>
<CAPTION>
Local Market Settlement Unrealized
Currency Cost Value Date Loss
---------------------------------------------------------------------------------------------------------------------------
TO SELL:
<S> <C> <C> <C> <C> <C>
EURO 16,612 $15,781 $15,860 7/31/00 $ (79)
---------------------------------------------------------------------------------------------------------------------------
Gross unrealized depreciation on forward foreign currency contract $ (79)
-----
</TABLE>
7. 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.
8. SHARES OF BENEFICIAL INTEREST
At June 30, 2000, the Trust had an unlimited number of shares of beneficial
interest authorized with a par value of $0.001 per share.
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Period Ended June 30, 2000
---------------------------------
ING GLOBAL BRAND NAMES FUND(1) SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 545,113 $5,447,017
Shares issued on reinvestment -- --
Shares redeemed (6) (59)
------- ----------
Net increase 545,107 $5,446,958
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on April 28, 2000.
8 ING Global Brand Names Fund Semi-Annual Report / June 30, 2000
<PAGE> 11
ING VARIABLE INSURANCE TRUST
BOARD OF TRUSTEES
John J. Pileggi, Chairman of the Board
Joseph N. Hankin
Jack D. Rehm
Blaine E. Rieke
Richard A. Wedemeyer
OFFICERS
John J. Pileggi, President & CEO
Donald E. Brostrom, Treasurer
Louis S. Citron, Vice President
Ralph G. Norton III, Vice President
Rachelle I. Rehner, Secretary
Charles Eng, Assistant Treasurer
Amy Lau, Assistant Treasurer
OFFICE OF THE FUNDS
1475 Dunwoody Drive
West Chester, PA 19380-1478
INVESTMENT MANAGER
ING Mutual Funds Management Co. LLC
1475 Dunwoody Drive
West Chester, PA 19380-1478
DISTRIBUTOR
ING Funds Distributor, Inc.
1475 Dunwoody Drive
West Chester, PA 19380-1478
CUSTODIAN
State Street Bank and Trust Co.
801 Pennsylvania Street
Kansas City, MO 64105
TRANSFER AGENT
DST Systems, Inc.
333 W. 11th Street
Kansas City, MO 64105
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
LEGAL COUNSEL
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Avenue of the Americas
New York, NY 10019-6064
SUB-ADVISER
ING Investment Management Advisors B.V.
Schenkkade 65, 2595 AS
The Hague, The Netherlands
<PAGE> 12
ING VARIABLE INSURANCE TRUST
INFORMATION AND SERVICES
CUSTOMER SERVICE
REPRESENTATIVES
1-800-366-0066
This report is authorized for use only when preceded or
accompanied by the current ING Variable Insurance Trust
prospectus and the prospectuses for the variable
insurance products offered by the participating
insurance companies, which describe 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
RS.0003.08/00 to buy any security.
________________________________________________________________________________
ING AMERICAS
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