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ING MUTUAL FUNDS - Notes to Mutual Funds Financial Statements - 7-7-2009

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ING MUTUAL FUNDS - Notes to Mutual Funds Financial Statements - 7-7-2009 Powered By Docstoc
					        NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED )
     




     




NOTE 1 — ORGANIZATION
     




Organization.  The ING Funds included in this report are comprised of ING Mutual Funds 
(“IMF”) and ING Mayflower Trust (“IMT”) (each a “Registrant” and collectively, the
“Registrants”); both are organized as open-end investment management companies
registered under the Investment Company Act of 1940, as amended (“1940 Act”).
     




IMF is a Delaware statutory trust organized December 18, 1992 with twenty-one separate
active series, all of which are included in this report, (each, a “Fund” and collectively, the
“IMF Funds”): ING Global Equity Dividend Fund (“Global Equity Dividend”), ING Global
Natural Resources Fund (“Global Natural Resources”), ING Global Real Estate Fund
(“Global Real Estate”), ING Global Value Choice Fund (“Global Value Choice”), ING Asia-
Pacific Real Estate Fund (Asia-Pacific Real Estate), ING Disciplined International
SmallCap Fund (“Disciplined International SmallCap”), ING Emerging Countries Fund
(“Emerging Countries”), ING European Real Estate Fund (“European Real Estate”), ING
Foreign Fund (“Foreign”), ING Greater China Fund (“Greater China”), ING Index Plus
International Equity Fund (“Index Plus International Equity”), ING International Capital
Appreciation Fund (“International Capital Appreciation”), ING International Equity
Dividend Fund (“International Equity Dividend”), ING International Growth Opportunities
Fund (“International Growth Opportunities”), ING International Real Estate Fund
(“International Real Estate”), ING International SmallCap Multi-Manager Fund
(“International SmallCap Multi-Manager”), ING International Value Choice Fund
(“International Value Choice”), ING Russia Fund (“Russia”), ING Emerging Markets Fixed
Income Fund (“Emerging Markets Fixed Income”), ING Global Bond Fund (“Global Bond”)
and ING Diversified International Fund (“Diversified International”). IMT is a
Massachusetts business trust organized August 18, 1993 with one series, ING 
International Value Fund (“International Value”) (a “Fund” and together with the IMF Funds,
the “Funds”). The investment objective of each Fund is described in the Funds’ 
prospectuses, each dated February 27, 2009. 
     




Each Fund offers at least one or more of the following classes of shares: Class A, 
Class B, Class C, Class I, Class O, Class Q, Class R and Class W. The separate 
classes of shares differ principally in the applicable sales charges (if any), distribution
fees and shareholder servicing fees and transfer agent fees. Generally, shareholders of
each class also bear certain expenses that pertain to that particular class. All
shareholders bear the common expenses of the Fund and earn income and realized
gains/losses from the portfolio pro rata based on the average daily net assets of each
class, without distinction between share classes. Common expenses of the Funds
(including custodial asset-based fees, legal and audit fees, printing and mailing
expenses, transfer agency out-of-pocket expenses, and fees and expenses of the
independent trustees) are allocated to each Fund in proportion to its average net assets.
Expenses directly attributable to a particular fund (including advisory, administration,
custodial transaction-based, registration, other professional, distribution and/or service
fees, certain taxes, and offering costs) are charged directly to that Fund. Differences in
per share dividend rates generally result from the differences in separate class expenses,
including distribution and shareholder servicing fees. Class B shares, along with their pro 
rata reinvested dividend shares, automatically convert to Class A shares eight years after
purchase.
     




Emerging Countries does not impose any front-end sales charge (load) on purchases of
Class A shares of Emerging Countries by its former Class M shareholders for the life of 
their account.
     




Diversified International seeks to achieve its investment objective by investing in other
Underlying Funds and uses asset allocation strategies to determine how much to invest in
the Underlying Funds.
     




NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
     
The following significant accounting policies are consistently followed by the Funds in the
preparation of their financial statements, and such policies are in conformity with
U.S. generally accepted accounting principles for investment companies. 
     




A. Security Valuation.  For all Funds except Russia and Diversified International, 
   investments in equity securities traded on a national securities exchange are valued at
   the last reported sale price. Securities reported by National Association of Securities
   Dealers Automated Quotation System (“NASDAQ”) will be valued at the NASDAQ
   official closing prices. Securities traded on an exchange or NASDAQ for which there
   has been no sale, securities traded in the over-the-counter-market, gold and silver
   bullion, platinum and palladium are valued at the mean between the last reported


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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           bid and ask prices. All investments quoted in foreign currencies will be valued daily in
           U.S. dollars on the basis of the foreign currency exchange rates prevailing at that time. 
           Debt securities are valued at prices obtained from independent services or from one
           or more dealers making markets in the securities and may be adjusted based on the
           Funds’ valuation procedures. U.S. government obligations are valued by using market 
           quotations or independent pricing services that use prices provided by market-makers
           or estimates of market values obtained from yield data relating to instruments or
           securities with similar characteristics.
        




           Securities and assets for which market quotations are not readily available (which may
           include certain restricted securities which are subject to limitations as to their sale) are
           valued at their fair values, as defined by the 1940 Act, and as determined in good faith
           by or under the supervision of the Funds’ Board in accordance with methods that are
           specifically authorized by the Board. Securities traded on exchanges, including foreign
           exchanges, which close earlier than the time that a Fund calculates its next net asset
           value (“NAV”) may also be valued at their fair values, as defined by the 1940 Act, and
           as determined in good faith by or under the supervision of a Fund’s Board, in
           accordance with methods that are specifically authorized by the Board. The valuation
           techniques applied in any specific instance are likely to vary from case to case. With
           respect to a restricted security, for example, consideration is generally given to the
           cost of the investment, the market value of any unrestricted securities of the same class
           at the time of valuation, the potential expiration of restrictions on the security, the
           existence of any registration rights, the costs to a Fund related to registration of the
           security, as well as factors relevant to the issuer itself. Consideration may also be
           given to the price and extent of any public trading in similar securities of the issuer or
           comparable companies’ securities.
        




           For all Funds the value of a foreign security traded on an exchange outside the United
           States is generally based on its price on the principal foreign exchange where it trades
           as of the time a Fund determines its NAV or if the foreign exchange closes prior to the
           time the Fund determines its NAV, the most recent closing price of the foreign security
           on its principal exchange. Trading in certain non-U.S. securities may not take place on
           all days on which the New York Stock Exchange (“NYSE”) is open. Further, trading
           takes place in various foreign markets on days on which the NYSE is not open.
           Consequently, the calculation of a Fund’s NAV may not take place contemporaneously
           with the determination of the prices of securities held by a Fund in foreign securities
           markets. Further, the value of a Fund’s assets may be significantly affected by foreign
           trading on days when a shareholder cannot purchase or redeem shares of the Fund. In
           calculating a Fund’s NAV, foreign securities in foreign currency are converted to
           U.S. dollar equivalents. 
        




           If an event occurs after the time at which the market for foreign securities held by a
           Fund closes but before the time that a Fund’s next NAV is calculated, such event may
           cause the closing price on the foreign exchange to not represent a readily available
           reliable market value quotation for such securities at the time a Fund determines its
           NAV. In such a case, a Fund will use the fair value of such securities as determined
           under the Funds’ valuation procedures. Events after the close of trading on a foreign
           market that could require a Fund to fair value some or all of its foreign securities
           include, among others, securities trading in the U.S. and other markets, corporate
           announcements, natural and other disasters, and political and other events. Among
           other elements of analysis in the determination of a security’s fair value, the Board has
           authorized the use of one or more independent research services to assist with such
           determinations. An independent research service may use statistical analyses and
           quantitative models to help determine fair value as of the time a Fund calculates its
           NAV. There can be no assurance that such models accurately reflect the behavior of
           the applicable markets or the effect of the behavior of such markets on the fair value of
           securities, or that such markets will continue to behave in a fashion that is consistent
           with such models. Unlike the closing price of a security on an exchange, fair value
determinations employ elements of judgment. Consequently, the fair value assigned to
a security may not represent the actual value that a Fund could obtain if it were to sell
the security at the time of the


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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           close of the NYSE. Pursuant to procedures adopted by the Board, a Fund is not
           obligated to use the fair valuations suggested by any research service, and valuation
           recommendations provided by such research services may be overridden if other
           events have occurred or if other fair valuations are determined in good faith to be more
           accurate. Unless an event is such that it causes a Fund to determine that the closing
           prices for one or more securities do not represent readily available reliable market
           value quotations at the time a Fund determines its NAV, events that occur between the
           time of the close of the foreign market on which they are traded and the close of regular
           trading on the NYSE will not be reflected in a Fund’s NAV. Investments in securities
           maturing in 60 days or less from the date of acquisition are valued at amortized cost 
           which approximates market value.
        




           For the Russia Fund, the valuation procedures for Russian equity securities are to
           price local shares according to the most recent available bid prices. If securities are
           not listed on the Russian Trade System (the “RTS”) or on any other pricing service that
           lists available bid quotes, then the mean of at least two broker bid quotes is used. For
           equity securities of an issuer in Russia for which there are no readily available reliable
           market value quotations, the following benchmark pricing procedure shall apply on any
           day on which the largest securities exchange in Russia declines by 2.5% or more; the
           price of the security shall be adjusted by the amount of the downward change in a
           composite of the other companies that are publicly traded in the same sector as the
           issuer, if ascertainable, and if not ascertainable, by the amount of downward change in
           the RTS.
        




           For Diversified International and other Funds with holdings in open end investment
           companies, the valuations of the Funds’ investments in Underlying Funds are based on
           the NAVs of the Underlying Funds each business day. In general, assets of the
           Underlying Funds are valued based on actual or estimated market value, with special
           provisions for assets not having readily available market quotations and short-term
           debt securities, and for situations where market quotations are deemed unreliable.
           Investments in securities maturing in 60 days or less from the date of acquisition are 
           valued at amortized cost which approximates market value. Securities prices may be
           obtained from automated pricing services. Shares of investment companies held by
           the Underlying Funds will generally be valued at the latest NAV reported by that
           investment company.
        




           Effective for fiscal years beginning after November 15, 2007, Financial Accounting 
           Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, 
           “Fair Value Measurements”, establishes a hierarchy for measuring fair value of assets
           and liabilities. As required by the standard, each investment asset or liability of the
           Funds is assigned a level at measurement date based on the significance and source
           of the inputs to its valuation. Quoted prices in active markets for identical securities are
           classified as “Level 1”, inputs other than quoted prices for an asset that are observable
           are classified as “Level 2” and unobservable inputs, including the adviser’s or
           sub-adviser’s judgment about the assumptions that a market participant would use in
           pricing an asset or liability are classified as “Level 3”. The inputs used for valuing
           securities are not necessarily an indication of the risks associated with investing in
           those securities. A table summarizing the Funds’ investments under these levels of
           classification is included following the Portfolios of Investments.
        




           Effective for fiscal years and interim periods ending after November 15, 2008, the 
           FASB issued FASB Staff Position (“FSP”) No. FAS 133-1 and FASB Interpretation
           Number (“FIN”) 45-4, “Disclosures about Credit Derivatives and Certain Guarantees:
           An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and 
           Clarification of the Effective Date of FASB Statement No. 161.” The amendments to
           FAS 133 require enhanced disclosure regarding credit derivatives sold, including 
           (1) the nature and terms of the credit derivative, reasons for entering into the credit 
           derivative, the events or circumstances that would require the seller to perform under
the credit derivative, and the current status of the payment/performance risk of the
credit derivative, (2) the maximum potential amount of future payments (undiscounted) 
the seller could be required to make under the credit derivative, (3) the fair value of the 
credit derivative, and (4) the nature of any recourse provisions and assets held either 
as collateral or by third parties. The amendments to FIN 45 require additional 


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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           disclosures about the current status of the payment/performance risk of a guarantee.
           All changes to accounting policies have been made in accordance with the FSP and
           incorporated for the current period as part of the Notes to Financial Statements and
           Portfolio of Investments.
        




   B. Security Transactions and Revenue Recognition.  Securities transactions are 
      accounted for on the trade date. Realized gains and losses are reported on the basis
      of identified cost of securities sold. Interest income is recorded on an accrual basis.
      Dividend income is recorded, net of any applicable withholding tax, on the ex-dividend
      date, or for certain foreign securities, when the information becomes available to the
      Funds. Premium amortization and discount accretion are determined by the effective
      yield method.
        




           For Diversified International, capital gain dividends from Underlying Funds are
           recorded as distributions of realized gains from affiliated Underlying Funds.
        




           Global Real Estate and International Real Estate estimate components of distributions
           from real estate investment trusts (“REITs”). Distributions received in excess of income
           are recorded as a reduction of cost of the related investments. If the Funds no longer
           own the applicable securities, any distributions received in excess of income are
           recorded as realized gains.
        




   C. Foreign Currency Translation.  The books and records of the Funds and Underlying 
      Funds are maintained in U.S. dollars. Any foreign currency amounts are translated into 
      U.S. dollars on the following basis: 
        




              (1)  Market value of investment securities, other assets and liabilities — at the
        
                   exchange rates prevailing at the end of the day.
              (2)  Purchases and sales of investment securities, income and expenses — at the
                   rates of exchange prevailing on the respective dates of such transactions.
        




           Although the net assets and the market values are presented at the foreign exchange
           rates at the end of the day, the Funds and Underlying Funds do not isolate the portion
           of the results of operations resulting from changes in foreign exchange rates on
           investments from the fluctuations arising from changes in market prices of securities
           held. Such fluctuations are included with the net realized and unrealized gains or losses
           from investments. For securities that are subject to foreign withholding tax upon
           disposition, liabilities are recorded on the Statements of Assets and Liabilities for the
           estimated tax withholding based on the securities’ current market value. Upon
           disposition, realized gains or losses on such securities are recorded net of foreign
           withholding tax.
        




           Reported net realized foreign exchange gains or losses arise from sales of foreign
           currencies, currency gains or losses realized between the trade and settlement dates
           on securities transactions, the difference between the amounts of dividends, interest,
           and foreign withholding taxes recorded on a Fund’s or an Underlying Fund’s books,
           and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized 
           foreign exchange gains and losses arise from changes in the value of assets and
           liabilities other than investments in securities at fiscal year end, resulting from changes
           in the exchange rate. Foreign security and currency transactions may involve certain
           considerations and risks not typically associated with investing in U.S. companies and 
           U.S. government securities. These risks include, but are not limited to revaluation of 
           currencies and future adverse political and economic developments which could cause
           securities and their markets to be less liquid and prices more volatile than those of
           comparable U.S. companies and U.S. government securities. The foregoing risks are 
           even greater with respect to securities of issuers in emerging markets.
        




   D. Forward Foreign Currency Transactions and Futures Contracts.  Each Fund and 
      Underlying Fund may enter into forward foreign currency exchange transactions to
convert to and from different foreign currencies and to and from the U.S. dollar, 
generally in connection with the planned purchases or sales of securities. The Funds
and Underlying Funds either enter into these transactions on a spot basis at the spot
rate prevailing in the foreign currency exchange market or may use forward foreign
currency contracts to purchase or sell foreign currencies. When the contract is fulfilled
or closed, gains or


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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           losses are realized. Until then, the gain or loss is included in unrealized appreciation or
           depreciation. Risks may arise upon entering into forward contracts from the potential
           inability of counterparties to meet the terms of their forward contracts and from
           unanticipated movements in the value of foreign currencies relative to the U.S. dollar. 
        




           Each Fund and Underlying Fund may enter into futures contracts involving foreign
           currency, interest rates, securities and securities indices. Each Fund and Underlying
           Fund intends to limit its use of futures contracts and futures options to “bona fide
           hedging” transactions, as such term is defined in applicable regulations, interpretations
           and practice. A futures contract obligates the seller of the contract to deliver and the
           purchaser of the contract to take delivery of the type of foreign currency, financial
           instrument or security called for in the contract at a specified future time for a specified
           price. Upon entering into such a contract, a Fund or an Underlying Fund is required to
           deposit and maintain as collateral such initial margin as required by the exchange on
           which the contract is traded. Pursuant to the contract, a Fund or an Underlying Fund
           agrees to receive from or pay to the broker an amount equal to the daily fluctuations in
           the value of the contract. Such receipts or payments are known as variation margin and
           are recorded as unrealized gains or losses by the Fund or an Underlying Fund. When
           the contract is closed, the Fund or Underlying Fund records a realized gain or loss
           equal to the difference between the value of the contract at the time it was opened and
           the value at the time it was closed.
        




   E. Distributions to Shareholders.  The Funds record distributions to their shareholders on
      ex-dividend date. Each Fund pays dividends and capital gains, if any, annually (except,
      Global Equity Dividend, Global Real Estate, Asia-Pacific Real Estate, European Real
      Estate, International Equity Dividend and International Real Estate, which pay
      dividends, if any, quarterly and Emerging Markets Fixed Income and Global Bond,
      which pay dividends, if any, monthly). The Funds may make distributions on a more
      frequent basis to comply with the distribution requirements of the Internal Revenue
      Code. The characteristics of income and gains to be distributed are determined in
      accordance with income tax regulations, which may differ from U.S. generally accepted
      accounting principles for investment companies.
        




   F. Federal Income Taxes.  It is the policy of the Funds to comply with subchapter M of the
      Internal Revenue Code and related excise tax provisions applicable to regulated
      investment companies and to distribute substantially all of their net investment income
      and any net realized capital gains to their shareholders. Therefore, no federal income
      tax provision is required. Management has considered the sustainability of the Funds’ 
      tax positions taken on federal income tax returns for all open tax years in making this
      determination. No capital gain distributions shall be made until any capital loss
      carryforwards have been fully utilized or expire.
        




           The Funds may utilize equalization accounting for tax purposes, whereby a portion of
           redemption payments are treated as distributions of income or gain.
        




   G. Use of Estimates.  The preparation of financial statements in conformity with 
      U.S. generally accepted accounting principles requires management to make 
      estimates and assumptions that affect the reported amounts of assets and liabilities
      and disclosure of contingent assets and liabilities at the date of the financial
      statements and the reported amounts of increases and decreases in net assets from
    
      operations during the reporting period. Actual results could differ from those estimates.
        




   H. Organization Expenses and Offering Costs.  Costs incurred with the organization of 
      the Funds and Underlying Funds are expensed as incurred. Costs incurred with the
      offering of shares of the Funds and Underlying Funds are deferred and amortized over
      a twelve-month period on a straight-line basis.
        




   I.   Repurchase Agreements.  Each Fund and Underlying Fund may invest in repurchase 
        agreements only with government securities dealers recognized by the Board of
Governors of the Federal Reserve System. Under such agreements, the seller of the
security agrees to repurchase it at a mutually agreed upon time and price. The resale
price is in excess of the purchase price and reflects an agreed upon


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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           interest rate for the period of time the agreement is outstanding. The period of the
           repurchase agreements is usually short, from overnight to one week, while the
           underlying securities generally have longer maturities. Each Fund and Underlying Fund
           will receive as collateral securities acceptable to it whose market value is equal to at
           least 100% of the carrying amount of the repurchase agreements, plus accrued
           interest, being invested by the Fund or Underlying Fund. The underlying collateral is
           valued daily on a mark to market basis to assure that the value, including accrued
           interest is at least equal to the repurchase price. There would be potential loss to the
           Fund or Underlying Fund in the event the Fund or Underlying Fund is delayed or
           prevented from exercising its right to dispose of the collateral, and it might incur
           disposition costs in liquidating the collateral.
        




   J.  Securities Lending.  Each Fund and Underlying Fund has the option to temporarily 
       loan up to 30% of its total assets to brokers, dealers or other financial institutions in
       exchange for a negotiated lender’s fee. The borrower is required to fully collateralize
       the loans with cash or U.S. government securities. Generally, in the event of 
       counterparty default, each Fund and Underlying Fund has the right to use collateral to
       offset losses incurred. There would be potential loss to a Fund or Underlying Fund in
       the event the Fund or Underlying Fund is delayed or prevented from exercising its right
       to dispose of the collateral. Each Fund and Underlying Fund bears the risk of loss with
       respect to the investment of collateral. Engaging in securities lending could have a
       leveraging effect, which may intensify the credit, market and other risks associated
    
       with investing in a Fund or Underlying Fund.
        




   K. Options Contracts.  The Funds may purchase put and call options and may write (sell) 
      put options and covered call options. The Funds may engage in option transactions as
      a hedge against adverse movements in the value of portfolio holdings or to increase
      market exposure. Option contracts are valued daily and unrealized gains or losses are
      recorded based upon the last sales price on the principal exchange on which the
      options are traded. An amount equal to the proceeds of the premium received by the
      Funds upon the writing of a put or call option is included in the Statements of Assets
      and Liabilities as an asset and equivalent liability which is subsequently
      marked-to-market until it is exercised or closed, or it expires. The Funds will realize a
      gain or loss upon the expiration or closing of the option contract. When an option is
      exercised, the proceeds on sales of the underlying security for a written call option, the
      purchase cost of the security for a written put option, or the cost of the security for a
      purchased put or call option is adjusted by the amount of premium received or paid.
      Realized and unrealized gains or losses on option contracts are reflected in the
      accompanying financial statements. The risk in writing a covered call option is that the
      Funds give up the opportunity for profit if the market price of the security increases and
      the option is exercised. The risk in writing a put option is that the Funds may incur a
      loss if the market price of the security decreases and the option is exercised. The risk
      in buying an option is that the Funds pay a premium whether or not the option is
      exercised. Risks may also arise from an illiquid secondary market of from the inability
    
      of counterparties to meet the terms of the contract.
        




   L.  Swap Agreements.  Certain Funds may enter into swap agreements. A swap is an 
       agreement between two parties pursuant to which each party agrees to make one or
       more payments to the other at specified future intervals based on the return of an asset
       (such as a stock, bond or currency) or non-asset reference (such as an interest rate or
       index). The swap agreement will specify the “notional” amount of the asset or non-
       asset reference to which the contract relates. Subsequent changes in market value, if
       any, are calculated based upon changes in the performance of the asset or non-asset
       reference multiplied by the notional value of the contract. A Fund may enter into credit
       default, interest rate, total return and currency swaps to manage its exposure to credit,
       currency and interest rate risk. All outstanding swap agreements are reported following
       each Fund’s Portfolio of Investments.
        
Swaps are marked to market daily using quotations primarily from third party pricing
services, counterparties or brokers. The value of the swap contract is recorded on
each Fund’s Statements of Assets or Liabilities. During the term of the swap, changes
in the value of the


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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           swap, if any, are recorded as unrealized gains or losses on the Statements of
           Operations. Upfront payments paid or received by a Fund when entering into the
           agreements are reported on the Statements of Assets and Liabilities and as a
           component of the changes in unrealized gains or losses on the Statements of
           Operations. These upfront payments represent the amounts paid or received when
           initially entering into the swap agreement to compensate for differences between the
           stated terms of the swap agreement and the prevailing market conditions. The upfront
           payments are included as a component in the realized gains or losses on each Fund’s
           Statement of Operations upon termination or maturity of the swap. A Fund also records
           net periodic payments paid or received on the swap contract as a realized gain or loss
           on the Statements of Operations.
        




           Entering into swap agreements involves the risk that the maximum potential loss of an
           investment exceeds the current value of the investment as reported on each Fund’s
           Statements of Assets and Liabilities. Other risks involve the possibility that the
           counterparty to the agreements may default on its obligation to perform, that there will
           be no liquid market for these investments and that unfavorable changes in the market
           will have a negative impact on the value of the index or securities underlying the
           respective swap agreement.
        




           Credit Default Swap Contracts.  A credit default swap is a bilateral agreement 
           between counterparties in which the buyer of the protection agrees to make a stream
           of periodic payments to the seller of protection in exchange for the right to receive a
           specified return in the event of a default or other credit event for a referenced entity,
           obligation or index. As a seller of protection on credit default swaps, a Fund will
           generally receive from the buyer a fixed payment stream based on the notional amount
           of the swap contract. This fixed payment stream will continue until the swap contract
           expires or a defined credit event occurs.
        




           A Fund is subject to credit risk in the normal course of pursuing its investment
           objectives. As a seller of protection in a credit default swap, a Fund may execute these
           contracts to manage its exposure to the market or certain sectors of the market. A
           Fund may also enter into credit default swaps to speculate on changes in an issuer’s
           credit quality, to take advantage of perceived spread advantages, or to offset an
           existing short equivalent (i.e. buying protection on an equivalent reference entity).
        




           Certain Funds may sell credit default swaps which expose these Funds to the risk of
           loss from credit risk- related events specified in the contract. Although contract
           specific, credit events are generally defined as bankruptcy, failure to pay, restructuring,
           obligation acceleration, obligation default or repudiation/moratorium. If a Fund is a
           seller of protection, and a credit event occurs, as defined under the terms of that
           particular swap agreement, a Fund will generally either (i) pay to the buyer an amount 
           equal to the notional amount of the swap and take delivery of the referenced obligation,
           other deliverable obligations, or underlying securities comprising a referenced index or
           (ii) pay a net settlement amount in the form of cash or securities equal to the notional 
           amount of the swap less the recovery value of the referenced obligation or underlying
           securities comprising a referenced index. If a Fund is a buyer of protection and a credit
           event occurs, as defined under the terms of that particular swap agreement, a Fund will
           either (i) receive from the seller of protection an amount equal to the notional amount of
           the swap and deliver the referenced obligation, other deliverable obligations or
           underlying securities comprising the referenced index or (ii) receive a net settlement 
           amount in the form of cash or securities equal to the notional amount of the swap less
           the recovery value of the referenced obligation or underlying securities comprising the
           referenced index. Recovery values are assumed by market makers considering either
           industry standard recovery rates or entity specific factors and considerations until a
           credit event occurs. If a credit event has occurred, the recovery value is determined by
           a facilitated auction whereby a minimum number of allowable broker bids, together
           with a specified valuation method, are used to calculate the settlement value.
        
Implied credit spreads, represented in absolute terms, utilized in determining the
market value


                                         79
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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
        




           of credit default swap agreements on corporate issues or sovereign issues are
           disclosed in each Fund’s Portfolio of Investment and serve as an indicator of the
           current status of the payment/performance risk and represent the likelihood or risk of
           default for the credit derivative. The implied credit spread of a particular referenced
           entity reflects the cost of buying/selling protection and may include upfront payments
           required to be made to enter into the agreement. For credit default swaps on asset-
           backed securities or credit indices, the quoted market prices and resulting market
           values serve as the indicator of the current status of the payment/performance risk.
           Wider credit spreads and increasing market values, in absolute terms when compared
           to the notional amount of the swap, represent a deterioration of the referenced entity’s
           credit soundness and a greater likelihood or risk of default or other credit event
           occurring as defined under the terms of the agreement.
        




           The maximum amount of future payments (undiscounted) that a Fund as seller of
           protection could be required to make under a credit default swap agreement would be
           an amount equal to the notional amount of the agreement. Notional amounts of all
           credit default swap agreements outstanding as of April 30, 2009, for which a Fund is 
           seller of protection, are disclosed in each Fund’s Portfolio of Investments. These
           potential amounts would be partially offset by any recovery values of the respective
           referenced obligations, upfront payments received upon entering into the agreements,
           or net amounts received from the settlement of buy protection credit default swap
           agreements entered into by a Fund for the same referenced entity or entities.
        




   M. Illiquid and Restricted Securities.  Each Fund and Underlying Fund may not invest 
      more than 15% of its net assets in illiquid securities. Illiquid securities are not readily
      marketable. Disposing of illiquid investments may involve time-consuming negotiation
      and legal expenses, and it may be difficult or impossible for the Funds and Underlying
      Funds to sell them promptly at an acceptable price. Each Fund and Underlying Fund
      may also invest in restricted securities which include those sold under Rule 144A of 
      the Securities Act of 1933 (“1933 Act”) or securities offered pursuant to Section 4(2) 
      of the 1933 Act, and/or are subject to legal or contractual restrictions on resale and 
      may not be publicly sold without registration under the 1933 Act. Certain restricted 
      securities may be considered liquid pursuant to procedures adopted by the Board or
      may be deemed illiquid because they may not be readily marketable. Illiquid and
      restricted securities are valued using market quotations when readily available. In the 
      absence of market quotations, the securities are valued based upon their fair value
    
      determined in good faith under procedures approved by the Board.
        




   N.  Delayed-Delivery or When-Issued Transaction.  The Funds and Underlying Funds 
       may purchase or sell securities on a when-issued or forward commitment basis. The
       price of the securities and date when the securities will be delivered and paid for are
       fixed at the time the transaction is negotiated. The market value of these securities is
       identified in each Fund’s Portfolio of Investments. Losses may arise due to changes in
       the market value of the securities or from the inability of counterparties to meet the
       terms of the contract. In connection with such purchases, the Funds and Underlying
    
       Funds are required to segregate liquid assets sufficient to cover the purchase price.
        




   O. Indemnifications.  In the normal course of business, each Trust may enter into 
       contracts that provide certain indemnifications. Each Trust’s maximum exposure under
       these arrangements is dependent on future claims that may be made against the
       Funds and, therefore, cannot be estimated; however, based on experience, the risk of
       loss from such claims is considered remote.
        




   NOTE 3 — INVESTMENT TRANSACTIONS
        




   For the six months ended April 30, 2009, the cost of purchases and the proceeds from 
   the sales of securities, excluding U.S. government and short-term securities, were as
   follows:
        

                                                                                                                     




                                                                    Purchases                         Sales
        
Global Equity Dividend                        $ 58,149,659          $ 76,276,141  
Global Natural Resources                        33,028,006            32,771,488  
Global Real Estate                             374,428,620           351,112,488  
Global Value Choice                             70,880,516            38,196,914  
Asia-Pacific Real Estate                        1,058,674             4,785,733  
Disciplined International SmallCap             126,156,935           116,281,619  
Emerging Countries                              71,347,372            80,123,475  




                                     80
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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 3 — INVESTMENT TRANSACTIONS (continued)
        

                                                                                                                                                                   




                                                                                      Purchases                                                    Sales
        




   European Real Estate                                                           $ 1,428,805                                              $    1,419,915  
   Foreign                                                                         249,731,483                                               308,246,792  
   Greater China                                                                    17,501,647                                               21,165,064  
   Index Plus International Equity                                                  84,184,863                                               87,377,026  
   International Capital Appreciation                                               20,727,866                                               23,741,618  
   International Equity Dividend                                                    11,282,989                                               21,484,412  
   International Growth Opportunities                                               37,593,432                                               53,160,263  
   International Real Estate                                                       100,830,033                                               81,921,497  
   International SmallCap Multi-Manager                                            119,593,525                                               226,026,685  
   International Value                                                             713,641,314                                              1,047,930,709  
   International Value Choice                                                       9,732,455                                                23,431,197  
   Russia                                                                           51,904,091                                               46,900,301  
   Emerging Markets Fixed Income                                                    99,247,359                                               64,958,766  
   Global Bond                                                                     158,761,419                                               93,794,680  
   Diversified International                                                        34,987,144                                               87,450,701  
        




   Purchases and sales of long-term U.S. government securities not included above were as
   follows:
        

                                                                                                                                                                             




                                                                                           Purchases                                                Sales
        




   Global Bond                                                                        $234,398,454                                             $239,942,712  
        




   NOTE 4 — REDEMPTION FEES
        




   A 2% redemption fee is charged on shares of Russia that are redeemed (including in
   connection with an exchange) within 365 days or less from their date of purchase. The 
   redemption fee is recorded as an addition to paid-in capital. Total redemption fee
   proceeds for the six months ended April 30, 2009 and year ended October 31, 2008 
   were $230,232 and $1,344,090, respectively, and are set forth in the Statements of
   Changes in Net Assets.
        




   NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
        




   Each of the Funds has entered into an investment management agreement
   (“Management Agreements”) with ING Investments, LLC (“ING Investments” or “Investment
   Adviser”). The Management Agreements compensate the Investment Adviser with a fee,
   computed daily and payable monthly, based on the average daily net assets of each
   Fund, at the following annual rates:
        

                                                               




                                                                                             As a Percentage of Average
                                                                                                  Daily Net Assets
        




   Global Equity Dividend                             0.70%
   Global Natural Resources                           1.00% on first $50 million; and 0.75% thereafter 
   Global Real Estate                                 0.80% on the first $250 million; 0.775% on the next $250 million; and 0.70% 
                                                      thereafter
   Global Value Choice                                0.90% on the first $500 million; 0.80% on the next $500 million; and 0.75% 
                                                      thereafter
   Asia-Pacific Real Estate                           1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% 
                                                      thereafter
   Disciplined International SmallCap                 0.60%
   Emerging Countries (1)                             1.25%
   European Real Estate                               1.00% on the first $250 million; 0.90% on the next $250 million; 0.80% 
                                                      thereafter
   Foreign (1)                                        1.00% on the first $500 million; and 0.90% thereafter 
   Greater China                                      1.15% on the first $100 million; 1.05% on the next $150 million; and 0.95% 
                                                      thereafter
   Index Plus International Equity                    0.55%
   International Capital Appreciation                 0.85% on the first $500 million; 0.80% on the next $500 million; and 0.75% 
                                                      thereafter
   International Equity Dividend                      0.75%
   International Growth Opportunities                 1.00%
   International Real Estate                          1.00% on the first $250 million; 0.90% on the next $250 million; and 0.80% 
                                                      thereafter
   International SmallCap                             1.00% on first $500 million; 
   Multi-Manager                                      0.90% on next $500 million; and 
                                                      0.85% thereafter
   International Value                                1.00% on the first $5 billion; 0.95% on the next $2.5 billion; 0.90% on the next
                                                      $2.5 billion; and 0.85% of assets in excess of $10 billion (applied to all assets
                                                      of the Fund)
   International Value Choice                         1.00%
   Russia                                             1.25%
Emerging Markets Fixed Income                                0.65% on the first $250 million; 0.60% on the next $250 million; and 0.55% 
                                                             thereafter
Global Bond                                                  0.40%
Diversified International                                    0.00%
     




(1) INGInvestments has contractually agreed to waive a portion of the advisory fee for ING Emerging Countries Fund and ING
   Foreign Fund. These advisory fee waivers will continue through at least March 1, 2010. There is no guarantee that these 
   waivers will continue after this date. These agreements will only renew if ING Investments elects to renew them.
     




ING Investments has contractually agreed to waive a portion of the advisory fee for
Emerging Countries and Foreign. The waiver is calculated as 50% of the difference
between the former sub-advisory fee minus the new sub-advisory fee.
     




For the six months ended April 30, 2009, ING Investments waived $64,743 and $12,832 
in advisory fees for Emerging Countries and Foreign, respectively.
     




ING Investment Management Advisors B.V. (“IIMA”), a registered investment adviser,
serves as the Sub-Adviser to Global Equity Dividend, Emerging Countries, Index Plus
International Equity, International Equity

                                                             81
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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
   (continued)
        




   Dividend, Russia and Emerging Markets Fixed Income pursuant to a sub-advisory
   agreement between the Investment Adviser and IIMA.
        




   ING Clarion Real Estate Securities L.P. (“ING CRES”) a registered investment adviser,
   serves as the Sub-Adviser to Asia-Pacific Real Estate, European Real Estate, Global
   Real Estate and International Real Estate pursuant to a sub-advisory agreement between
   the Investment Adviser and ING CRES.
        




   Tradewinds Global Investors, LLC (“Tradewinds”), a registered investment adviser,
   serves as the Sub-Adviser to Global Value Choice and International Value Choice
   pursuant to a sub-advisory agreement between the Investment Adviser and Tradewinds.
        




   Brandes Investment Partners, L.P. (“Brandes”), a registered investment adviser, serves
   as one of the Sub-Advisers to International Value pursuant to a sub-advisory agreement
   between the Investment Adviser and Brandes.
        




   Artio Global Investment Management LLC, a registered investment adviser, serves as the
   Sub-Adviser to Foreign pursuant to a sub-advisory agreement between the Investment
   Adviser and the sub-adviser.
        




   ING Investment Management Co. (“ING IM”), a registered investment adviser, serves as
   sub-adviser to Disciplined International SmallCap, Global Natural Resources,
   International Growth Opportunities and Global Bond and as one of the Sub-Advisers to
   International Value, pursuant to a sub-advisory agreement between the Investment
   Adviser and ING IM.
        




   Acadian Asset Management LLC (“Acadian”), a registered investment adviser, serves as
   one of the Sub-Advisers to International SmallCap Multi-Manager pursuant to a sub-
   advisory agreement between the Investment Adviser and Acadian. Batterymarch
   Financial Management, Inc. (“Batterymarch”) serves as the second Sub-Adviser to
   International SmallCap Multi-Manager pursuant to a sub-advisory agreement between the
   Investment Adviser and Batterymarch. Schroder Investment Management North America,
   Inc. (“Schroders”), serves as the third Sub-Adviser to International SmallCap Multi-
   Manager pursuant to a sub-advisory agreement between the Investment Adviser and
   Schroders.
        




   ING Investment Management Asia/Pacific (Hong Kong) Limited (“ING Asia”), a registered
   investment adviser, serves as the Sub-Adviser to Greater China pursuant to a sub-
   advisory agreement between the Investment Adviser and ING Asia.
        




   Hansberger Global Investors, Inc. (“HGI”), a registered investment adviser, serves as the
   Sub-Adviser to International Capital Appreciation pursuant to a sub-advisory agreement
   between the Investment Adviser and HGI.
        




   For Diversified International, ING Investment Management Co. (the “Consultant” or “ING
   IM”) is a consultant to the Investment Adviser. The Consultant provides tactical allocation
   recommendations to the Investment Adviser. The Investment Adviser has set up an
   Investment Committee made up of a team of professionals to consider, review and
   implement the recommendations of the Consultant, and retains discretion over
   implementation of the Consultant’s recommendations. The Consultant provides ongoing
   recommendations to the Investment Committee of the Investment Adviser quarterly or as
   warranted by market conditions.
        




   ING Funds are permitted to invest end-of-day cash balances into ING Institutional Prime
   Money Market Fund. Investment management fees paid by the Funds will be reduced by
   an amount equal to the management fees paid indirectly to ING Institutional Prime Money
   Market Fund with respect to assets invested by the Funds. For the six months ended
   April 30, 2009, the following funds waived such management fees which are not subject 
   to recoupment:
        

                                                                                                    
Global Natural Resources                                                        $ 324  
Global Real Estate                                                                9,282  
Global Value Choice                                                               3,329  
Asia-Pacific Real Estate                                                             13  
European Real Estate                                                                 31  
Foreign                                                                           3,826  
International Growth Opportunities                                                285  
International Real Estate                                                         3,035  
International SmallCap Multi-Manager                                              372  
International Value                                                              13,354  
International Value Choice                                                        464  
Global Bond                                                                       8,100  
     




ING Funds Services, LLC (the “Administrator”), serves as administrator to each Fund.
The Funds pay the Administrator a fee calculated at an annual rate of 0.10% of each
Fund’s average daily net assets.
     




International Value also pays the Administrator an annual shareholder account-servicing
fee of $5.00 for each account of beneficial owners of shares.


                                           82
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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 5 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES
   (continued)
        




   The Investment Adviser, ING IM, ING CRES, IIMA, ING Asia and the Administrator are 
   indirect, wholly-owned subsidiaries of ING Groep N.V. (“ING Groep”). ING Groep is a
   global financial institution of Dutch origin offering banking, investments, life insurance and
   retirement services.
        




   On October 19, 2008, ING Groep announced that it reached an agreement with the Dutch 
   government to strengthen its capital position. ING Groep issued non-voting core Tier-1
   securities for a total consideration of EUR 10 billion to the Dutch State. The transaction 
   boosts ING Bank’s core Tier-1 ratio, strengthens the insurance balance sheet and
   reduces ING Groep’s Debt/Equity ratio.
        




   NOTE 6 — DISTRIBUTION AND SERVICE FEES
        




   Each share class of the Funds, except Class I and Class W, has adopted a Plan pursuant
   to Rule 12b-1 under the 1940 Act (the “12b-1 Plans”), whereby ING Funds Distributor,
   LLC (“IFD” or the “Distributor”), an indirect, wholly-owned subsidiary of ING Groep, is
   reimbursed or compensated (depending on the class of shares) by the Funds for
   expenses incurred in the distribution of each Funds’ shares (“Distribution Fees”).
   Pursuant to the 12b-1 Plans, the Distributor is entitled to a payment each month for
   expenses incurred in the distribution and promotion of each Fund’s shares, including
   expenses incurred in printing prospectuses and reports used for sales purposes,
   expenses incurred in preparing and printing sales literature and other such distribution
   related expenses, including any distribution or shareholder servicing fees (“Service
   Fees”) paid to securities dealers who have executed a distribution agreement with the
   Distributor. Under the 12b-1 Plans, each class of shares of a Fund pays the Distributor a
   Distribution and/or Service Fee based on average daily net assets at the following annual
   rates:
        

                                                                                                                                                                                                                                                             




                                                              Class A                  Class B   Class C                                         Class O                                   Class Q                                     Class R
        




   Global Equity Dividend                                      0.25%                   1.00%                  1.00%                               0.25%                                       N/A                                         N/A   
   Global Natural Resources                                    0.25%                    N/A                    N/A                                 N/A                                        N/A                                         N/A   
   Global Real Estate                                          0.25%                   1.00%                  1.00%                               0.25%                                       N/A                                         N/A   
   Global Value Choice                                         0.25%                   1.00%                  1.00%                                N/A                                       0.25%                                        N/A   
   Asia-Pacific Real Estate                                    0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   Disciplined International SmallCap                          0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   Emerging Countries                                          0.35%(1)                1.00%                  1.00%                                N/A                                       0.25%                                        N/A   
   European Real Estate                                        0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   Foreign                                                     0.25%                   1.00%                  1.00%                                N/A                                       0.25%                                        N/A   
   Greater China                                               0.25%                   1.00%                  1.00%                               0.25%                                       N/A                                         N/A   
   Index Plus International Equity                             0.25%                   1.00%                  1.00%                               0.25%                                       N/A                                         N/A   
   International Capital Appreciation                          0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   International Equity Dividend                               0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   International Growth Opportunities                          0.25%                   1.00%                  1.00%                                N/A                                       0.25%                                        N/A   
   International Real Estate                                   0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   International SmallCap Multi-Manager                        0.35%                   1.00%                  1.00%                               0.25%                                      0.25%                                        N/A   
   International Value                                         0.30%                   1.00%                  1.00%                                N/A                                       0.25%                                        N/A   
   International Value Choice                                  0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   Russia                                                      0.25%                    N/A                    N/A                                 N/A                                        N/A                                         N/A   
   Emerging Markets Fixed Income                               0.25%                   1.00%                  1.00%                                N/A                                        N/A                                         N/A   
   Global Bond                                                 0.25%                   1.00%                  1.00%                               0.25%                                       N/A                                         N/A   
   Diversified International                                   0.25%                   1.00%                  1.00%                               0.25%                                       N/A                                        0.50%
        




   (1) The Distributor has agreed to waive 0.10% of the Distribution Fee for Class A shares of Emerging Countries for the period 

      from January 1, 2009 through March 1, 2010. 
        




   The Distributor also receives the proceeds of the initial sales charge paid by
   shareholders upon the purchase of Class A shares, and the contingent deferred sales 
   charge paid by shareholders upon certain redemptions for Class A and Class C shares. 
   For the six months ended April 30, 2009, the Distributor retained the following amounts in 
   sales charges for the Funds:
        

                                                                                                                                                                                                                                                   




                                                                                                                                                  Class A                                                              Class C
                                                                                                                                                  Shares                                                               Shares
        




   Initial Sales Charges:                                                                                                                                                                                                                    
   Global Equity Dividend                                                                                                                        $ 3,006                                                                               N/A  
Global Natural Resources                              6,757                  N/A  
Global Real Estate                                   19,745                  N/A  
Global Value Choice                                   4,374                  N/A  
Asia-Pacific Real Estate                                 —                   N/A  
Disciplined International SmallCap                       —                   N/A  
Emerging Countries                                    1,984                  N/A  
European Real Estate                                     17                  N/A  
Foreign                                               2,870                  N/A  
Greater China                                         5,605                  N/A  
Index Plus International Equity                       105                    N/A  
International Capital Appreciation                    168                    N/A  
International Equity Dividend                         108                    N/A  
International Growth Opportunities                    901                    N/A  
International Real Estate                             1,856                  N/A  
International SmallCap Multi-Manager                  3,261                  N/A  
International Value                                   3,548                  N/A  
International Value Choice                            416                    N/A  
Russia                                               52,251                  N/A  
Emerging Markets Fixed Income                         157                    N/A  
Global Bond                                           8,060                  N/A  
Diversified International                             6,930                  N/A  
                                                                                     
Contingent Deferred Sales Charges:                                                   
Global Equity Dividend                                   37                $ 1,355  
Global Natural Resources                              287                       —  
Global Real Estate                                    9,609                 26,780  
Global Value Choice                                      —                   2,124  
Asia-Pacific Real Estate                                 —                      32  
Disciplined International SmallCap                       —                      —  




                                       83
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           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 6 — DISTRIBUTION AND SERVICE FEES (continued)
        

                                                                                                                                                                                                                                                 




                                                                                                                                                                      Class A                                                Class C
                                                                                                                                                                      Shares                                                 Shares
        




   Emerging Countries                                                                                                                                                       —                                                  830  
   European Real Estate                                                                                                                                                     —                                                  15  
   Foreign                                                                                                                                                                 428                                                6,120  
   Greater China                                                                                                                                                           315                                                1,114  
   Index Plus International Equity                                                                                                                                          —                                                  33  
   International Capital Appreciation                                                                                                                                       —                                                  —  
   International Equity Dividend                                                                                                                                            —                                                  15  
   International Growth Opportunities                                                                                                                                       —                                                  342  
   International Real Estate                                                                                                                                            4,334                                                 2,565  
   International SmallCap Multi-Manager                                                                                                                                 5,746                                                 2,578  
   International Value                                                                                                                                                  1,465                                                 1,743  
   International Value Choice                                                                                                                                               —                                                  976  
   Russia                                                                                                                                                              110,650                                                 —  
   Emerging Markets Fixed Income                                                                                                                                            —                                                  133  
   Global Bond                                                                                                                                                          8,043                                                 9,368  
   Diversified International                                                                                                                                               267                                                8,179  
        




   NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
        




   At April 30, 2009, the Funds had the following amounts recorded in payable to affiliates 
   on the accompanying Statements of Assets and Liabilities (See Notes 5 and 6): 
        

                                                                                                                                                                                                                                                                   




                                                                                                                                      Accrued                                                                                                           
                                       Accrued                                                                                      Shareholder                                                                                                         
                                      Investment                                               Accrued                               Service and                                               Accrued                                                  
   Fund                            Management Fees                                        Administrative Fees                     Distribution Fees                                           Recoupment                                            Total
        




   Global Equity Dividend                                $   61,853                            $    8,836                               $ 50,843                                               $                  —                $ 121,532 
   Global Natural
      Resources                                            58,409                                6,427                                    16,001                                                               —                      80,837 
   Global Real Estate                                      631,415                               85,296                                  213,554                                                               —                      930,265 
   Global Value Choice                                     94,750                                10,606                                   27,113                                                            1,950                     134,419 
   Asia-Pacific Real
      Estate                                                  2,323                                         233                                          923                                                      —                                   3,479 
   Disciplined International
      SmallCap                                             110,375                               18,396                                       83                                                                  —                   128,854 
   Emerging Countries                                      101,689                               8,135                                    26,504                                                                  —                   136,328 
   European Real Estate                                      2,214                                  221                                      588                                                                  —                     3,023 
   Foreign                                                 187,590                               18,807                                   89,333                                                                  —                   295,730 
   Greater China                                           27,055                                2,353                                    9,346                                                                   —                   38,754 
   Index Plus International
      Equity                                                 41,396                                 7,527                                 10,813                                                                  —                                  59,736 
   International Capital
      Appreciation                                           32,537                                 3,828                                                455                                                      —                                  36,820 
   International Equity
      Dividend                                               13,673                                 1,823                                                829                                                7,294                                    23,619 
   International Growth
      Opportunities                                          36,982                                 3,698                                 13,492                                                                  —                                  54,172 
   International Real
      Estate                                               302,537                               31,401                                   33,020                                                170,100                               537,058 
   International SmallCap
      Multi-Manager                                        245,339                               24,548                                   70,323                                                                  —                   340,210 
   International Value                                    1,270,852                             127,232                                  406,571                                                                  —                  1,804,655 
   International Value
      Choice                                               30,592                                3,067                                    5,306                                                                   —                   38,965 
   Russia                                                  226,227                               18,098                                   45,245                                                                  —                   289,570 
   Emerging Markets
      Fixed Income                                         133,840                               20,607                                   1,495                                                  65,629                               221,571 
   Global Bond                                             58,406                                15,096                                   44,805                                                     —                                118,307 
   Diversified International                                    —                                16,118                                   87,687                                                     —                                103,805 
        




   At April 30, 2009, the following indirect, wholly owned subsidiaries of ING Groep owned 
   the following Funds:
        

                                                                                                                   




   ING Diversified International —                                                                            Emerging Countries (12.10%); Foreign (19.90%); Index Plus
                                                                                                              International Equity (21.00%); International Capital
                                                                                                              Appreciation (97.70%); International Equity Dividend
                                                                                                              (92.20%). International SmallCap Multi-Manager (7.10%);
                                                                                                              International Value Choice (52.90%).
                                                                                                                
                                                                                                                
ING Life Insurance and Annuity Company —           Asia-Pacific Real Estate (71.30%); European Real Estate
                                                   (84.20%); International SmallCap Multi-Manager (9.00%).
                                                     
                                                     
ING LifeStyle Aggressive Growth Portfolio —        Disciplined International SmallCap (13.50%).
                                                     
                                                     
ING LifeStyle Growth Portfolio —                   Disciplined International SmallCap (40.90%); Emerging
                                                   Markets Fixed Income (40.00%).
                                                     
                                                     
ING LifeStyle Moderate Portfolio —                 Disciplined International SmallCap (14.30%); Emerging
                                                   Markets Fixed Income (24.10%).
                                                     
                                                     
ING LifeStyle Moderate Growth Portfolio —          Disciplined International SmallCap (29.40%); Emerging
                                                   Markets Fixed Income (29.60%).
                                                     
                                                     
ING Luxenbourg SA —                                International Real Estate (11.40%).
                                                     
                                                     
ING National Trust —                               International Growth Opportunities (18.70%); International
                                                   Value (7.40%).
                                                     
                                                     
ING Solution 2015 Portfolio —                      Global Bond (13.60%).


                                              84
Table of Contents

           NOTES TO FINANCIAL STATEMENTS AS OF APRIL 30, 2009 (UNAUDITED ) (CONTINUED)
        




   NOTE 7 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
   (continued)
        

                                                             




                                                          
                                                          
   ING Solution 2025 Portfolio —                        Global Bond (12.90%).
                                                          
                                                          
   ING Solution 2035 Portfolio —                        Global Bond (10.10%).
                                                          
                                                          
   ING Strategic Allocation Growth —                    Index Plus International Equity (10.20%).
                                                          
   ING Strategic Allocation Moderate —                  Index Plus International Equity (7.70%).
        




   Control is defined by the 1940 Act as the beneficial ownership, either directly or through
   one or more controlled companies, of more than 25% of the voting securities of a
   company. The 1940 Act defines affiliates as companies that are under common control.
   Therefore, because the Funds have a common owner that owns over 25% of the
   outstanding securities of the Funds, they may be deemed to be affiliates of each other.
   Investment activities of these shareholders could have a material impact on the Funds.
        




   The Investment Adviser may request that the Funds’ portfolio managers use their best
   efforts (subject to obtaining best execution of each transaction) to allocate a portfolio’s
   equity security transactions through certain designated broker-dealers. The designated
   broker-dealer, in turn, will reimburse a portion of the brokerage commissions to pay
   certain expenses of that Fund. Any amounts credited to a Fund are reflected as a
   reimbursement of expenses in the Statements of Operations.
        




   The Registrants have adopted a Retirement Policy covering all independent trustees of
   the Funds who will have served as an independent trustee for at least five years at the
   time of retirement. Benefits under this plan are based on an annual rate as defined in the
   plan agreement.
        




   The following Funds placed a portion of their portfolio transactions with brokerage firms
   which are affiliates of the investment adviser. The commissions paid to these affiliated
   firms were:
        

                                                                                                                            




                                                                                  Affiliated                Commissions
   Fund                                                                           Brokers                      Paid
        




   Global Equity Dividend                                                 ING Baring LLC                      $ 555  
   Global Real Estate                                                     ING Baring LLC                       39,761  
   Asia-Pacific Real Estate                                               ING Baring LLC                           47  
   Emerging Countries                                                     ING Baring LLC                        6,906  
   Foreign                                                                ING Baring LLC                           51  
   Greater China                                                          ING Baring LLC                        6,929  
   International Equity Dividend                                          ING Baring LLC                        305  
   International Real Estate                                              ING Baring LLC                       23,321  
   International SmallCap
      Multi-Manager                                             ING Baring LLC                                  1,683  
   International Value Choice                                   ING Baring LLC                                  306