Audited Annual Financial Statements For the period ended December 31, 2012 ING DIRECT Streetwise Equity Growth Portfolio

Contents ING DIRECT Streetwise Equity Growth Portfolio 

Annual Financial Statements Notes to the Financial Statements

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ING DIRECT Streetwise Equity Growth Portfolio Independent auditors’ report To the Unitholders of ING Direct Streetwise Balanced Income Portfolio ING Direct Streetwise Balanced Portfolio ING Direct Streetwise Balanced Growth Portfolio ING Direct Streetwise Equity Growth Portfolio (collectively, the “Funds”) We have audited the accompanying financial statements of each of the Funds, which comprise the statement of investments as at December 31, 2012, the statement of net assets as at December 31, 2012 and 2011, and the statement of operations and statement changes in net assets for the disclosed periods then ended, and a summary of significant accounting policies and other explanatory information. Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as at December 31, 2012 and 2011 and the results of each of their operations and the changes in each of their net assets for the disclosed periods then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants Licensed Public Accountants Toronto, Canada March 21, 2013

ING DIRECT Annual Financial Statements December 31, 2012

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ING DIRECT Streetwise Equity Growth Portfolio ING DIRECT Streetwise Equity Growth Portfolio (formerly ING DIRECT Streetwise Equity Growth Fund) Statement of Net Assets

ING DIRECT Streetwise Equity Growth Portfolio (formerly ING DIRECT Streetwise Equity Growth Fund) Statement of Operations

2012 2011 Assets Investments at fair value (Notes 2b and 5) $ 33,175,595 $ 19,037,841 Cash 201,378 129,964 Subscriptions receivable 454,310 656,487 Receivable for securities sold 169 – Accrued investment income 74,643 36,415 33,906,095 19,860,707

Period from Year ended Nov. 18, 2011 Dec. 31, to Dec. 31, 2012 2011 Investment Income Dividends $ 866,235 $ 62,070 Interest 4,649 442 Securities lending income 1,993 – Less: Foreign withholding taxes (45,457) (3,296) 827,420 59,216

As at December 31,

Liabilities Payable on open spot and forward contracts 147 43 Payable for securities purchased 149,204 111,602 Redemptions payable 164,649 5,617 Accrued expenses 29,406 16,285 343,406 133,547 Net assets representing unitholders’ equity $ 33,562,689 $ 19,727,160 Number of units outstanding (Note 7) 3,043,917 1,940,732 Net assets per unit (Note 3) $ 11.03 $ 10.16

Approved by the board of directors of ING DIRECT Asset Management Limited

Rob Landry, Director

Peter Aceto, Director

For the periods ended December 31

Expenses Management fees (Note 10) Interest Administrative fees (Note 10) Other expenses including indirect taxes (Note 10) Independent Review Committee fees Rebated and absorbed expenses (Note 10) Net expenses Net investment income

233,443 6,216 43,770 35,016 14,144 332,589 (14,144) 318,445 508,975

Net Realized and Unrealized Gain (Loss) on Investments Net realized gain on investments 245,827 Net realized loss on foreign exchange (4,032) Net unrealized appreciation on investments arising during the period 1,495,431 Net unrealized appreciation (depreciation) on foreign exchange arising during the period 94 Transaction costs (Note 2g) (41,514) Net gain on investments 1,695,806 Increase in Net Assets from Operations $ 2,204,781 $ Increase in net assets from operations per unit $ $0.80 $

16,156 – 3,029 2,423 2,345 23,953 (2,345) 21,608 37,608

4,315 (8,801) 291,360 (113) (12,968) 273,793 311,401 0.18

ING DIRECT Streetwise Equity Growth Portfolio (formerly ING DIRECT Streetwise Equity Growth Fund) Statement of Changes in Net Assets For the periods ended December 31

Period from Year ended Nov. 18, 2011 Dec. 31, to Dec. 31, 2012 2011 Net Assets, Beginning of Period $ 19,727,160 $ – Increase in net assets from operations 2,204,781 311,401 Distributions to unitholders from Net investment income (448,239) – Capital gains – (16,531) (448,239) (16,531) Capital Transactions Proceeds from issue 31,151,568 19,433,359 Reinvested distributions 448,239 16,531 Payments on redemption (19,520,820) (17,600) 12,078,987 19,432,290 Increase in net assets 13,835,529 19,727,160 Net Assets, End of Period $ 33,562,689 $ 19,727,160

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ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio ING DIRECT Streetwise Equity Growth Portfolio (formerly ING DIRECT Streetwise Equity Growth Fund) Statement of Investments

Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Austria 134 Andritz AG 7,315 8,548 218 Erste Group Bank AG 5,261 6,872 Number Average Fair % of Net of Shares Security Cost ($) Value ($) Assets 56 Immofinanz Immobilien Anlagen AG 175 233 156 OMV AG 4,810 5,603 EQUITY (98.8%) 17,561 21,256 Australia 397 AGL Energy Limited 5,713 6,299 Belgium 547 ALS Limited 7,358 6,074 298 Ageas 6,555 8,680 706 Amcor Limited 5,242 5,885 612 Anheuser-Busch InBev NV 41,865 52,720 2,607 AMP Limited 11,094 12,953 158 Belgacom SA 4,949 4,595 365 APA Group 1,828 2,077 95 Delhaize Group 5,763 3,772 1,235 Asciano Group 6,203 5,945 110 Groupe Bruxelles Lambert SA 7,939 8,664 422 ASX Ltd. 12,861 13,600 169 KBC Bank NV 5,058 5,777 1,629 Aurizon Holdings Ltd 5,928 6,276 27 Solvay SA 2,681 3,876 1,894 Australia and New Zealand Banking 80 UCB SA 3,367 4,540 Group Limited 43,035 48,930 118 Umicore 4,604 6,459 123 Bendigo Bank Limited NPV 902 1,080 82,781 99,083 2,588 BHP Billiton Limited 94,387 99,178 867 Brambles Limited 6,039 6,726 690 CFS Retail Property Trust 1,316 1,365 Bermuda 421 Coca-Cola Amatil Limited 5,234 5,849 375 Invesco Limited 8,681 9,728 1,240 Commonwealth Bank of Australia 65,828 79,643 294 Nabors Industries, Ltd. 6,378 4,226 146 Computershare Ltd. 1,142 1,350 6,000 Noble Group Limited 6,391 5,643 409 CSL Limited 15,591 22,750 172 SeaDrill Ltd. 6,191 6,258 1,490 Dexus Property Group 1,370 1,554 27,641 25,855 989 Fortescue Metals Group Limited 4,949 4,730 1,587 General Property Trust 5,024 6,016 Canada 2,030 Goodman Group 7,943 9,059 2,566 Agnico-Eagle Mines Limited 109,230 133,483 284 Iluka Resources Ltd. 4,307 2,646 2,243 Agrium Inc. 184,935 222,371 2,542 Incitec Pivot Limited 8,324 8,455 4,657 ARC Resources Ltd. 111,035 113,025 1,627 Insurance Australia Group Limited 4,963 7,882 9,738 Bank of Montreal 559,404 592,168 696 Lend Lease Corp. 5,027 6,650 14,979 Barrick Gold Corporation 666,851 519,921 213 Macquarie Group Limited 5,118 7,797 11,596 BCE Inc. 472,684 493,990 1,526 Metcash Limited 6,579 5,233 22,089 Bombardier Inc. Cl. B 88,469 82,834 5,925 Mirvac Group 7,642 9,058 8,432 Brookfield Asset Management Inc. 1,690 National Australia Bank Limited 41,830 43,625 Cl. A Limited Voting 260,695 306,082 571 Newcrest Mining Limited 20,079 13,082 5,982 Cameco Corporation 122,559 116,948 200 Orica Limited 5,069 5,177 6,056 Canadian Imperial Bank of Commerce 448,747 484,238 816 Origin Energy Limited 11,671 9,794 6,434 Canadian National Railway Company 518,983 580,926 490 OZ Minerals Ltd. 5,722 3,391 16,389 Canadian Natural Resources Ltd. 559,737 469,217 918 QBE Insurance Group Limited 12,344 10,336 6,809 Canadian Oil Sands Ltd. 143,970 137,201 348 Rio Tinto Limited 23,387 23,728 2,220 Canadian Pacific Railway Limited 160,857 223,709 507 Santos Limited 6,347 5,813 1,243 Canadian Tire Corporation, Limited Cl. A 81,782 86,127 432 Sonic Healthcare Limited 5,084 5,948 11,328 Cenovus Energy Inc. 384,430 377,109 1,528 Stockland 4,884 5,572 5,589 Crescent Point Energy Corp. 246,806 209,587 1,190 Suncorp Group Ltd. 10,124 12,501 10,774 Eldorado Gold Corporation 159,648 137,584 2,416 Tatts Group Ltd. 7,334 7,512 11,974 Enbridge Inc. 456,407 514,882 2,441 Telstra Corporation Limited 8,267 11,019 11,070 EnCana Corporation 223,069 216,972 948 Transurban Group 5,299 5,964 3,086 Enerplus Corp. 63,606 39,501 747 Wesfarmers Limited 23,961 28,434 7,189 First Quantum Minerals Ltd. 142,731 157,152 1,674 Westfield Group 15,308 18,243 2,893 Fortis, Inc. 95,299 98,738 1,943 Westfield Retail Trust 4,881 6,061 731 George Weston Limited 46,414 51,579 2,533 Westpac Banking Corporation 57,782 68,106 1,698 Gildan Activewear Inc. Cl. A, Sub. Voting 43,478 61,569 515 Woodside Petroleum Limited 18,562 18,023 12,149 Goldcorp, Inc. 554,414 441,981 914 Woolworths Limited 24,820 27,681 4,453 Husky Energy Inc. 112,798 130,874 228 WorleyParsons Ltd. 6,183 5,502 5,557 IAMGOLD Corporation 88,114 63,127 669,885 730,572 2.2 As at December 31, 2012

ING DIRECT Annual Financial Statements December 31, 2012

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ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

3,833 Imperial Oil Ltd. 169,370 163,784 6,300 iShares S&P/TSX 60 Index Fund 112,101 112,896 17,178 Kinross Gold Corp. 188,708 164,909 1,552 Loblaw Companies Limited 55,147 64,967 3,515 Magna International Inc. Cl. A Sub. Voting 142,193 174,239 27,302 Manulife Financial Corporation 320,199 368,031 1,459 Metro Inc. Cl. A Sub-Voting 77,290 92,253 2,425 National Bank of Canada 176,576 186,967 7,971 Nexen Inc. 150,691 211,789 7,084 Penn West Petroleum Ltd. 122,219 76,295 12,895 Potash Corporation of Saskatchewan Inc. 558,084 520,700 5,220 Power Corporation of Canada 124,063 132,014 6,188 Research In Motion Limited 92,655 72,895 5,495 Rogers Communications, Inc. Cl. B 211,218 248,044 21,594 Royal Bank of Canada 1,112,842 1,291,537 1,914 Saputo Inc. 79,906 96,083 5,564 Shaw Communications, Inc. Cl. B Non-Voting 114,852 126,915 3,091 Shoppers Drug Mart Corporation 129,478 132,017 5,331 Silver Wheaton Corp. 177,539 190,743 2,279 SNC-Lavalin Group Inc. 101,748 91,775 8,968 Sun Life Financial Inc. 194,082 236,217 22,900 Suncor Energy, Inc. 731,630 748,830 15,553 Talisman Energy Inc. 197,379 174,505 7,217 Teck Resources Ltd. Cl. B Sub-Voting 253,847 260,173 4,887 TELUS Corporation 281,982 317,850 16,247 The Bank of Nova Scotia 843,500 932,903 13,721 The Toronto-Dominion Bank 1,056,677 1,147,762 5,606 Thomson Reuters Corporation 157,630 161,285 2,333 Tim Hortons, Inc. 119,922 113,827 3,912 TransAlta Corporation 71,823 59,032 10,555 TransCanada Corporation 453,050 495,768 4,284 Valeant Pharmaceuticals International, Inc. 210,915 253,784 11,310 Yamana Gold Inc. 185,001 192,722 16,081,469 16,676,406 Cayman Islands 1,600 Sands China Ltd. 4,776 6,961 2,000 Wynn Macau Limited 5,456 5,351 10,232 12,312 Denmark 1 A.P. Moller - Maersk A/S 6,529 7,497 1 A.P. Moller - Maersk A/S Series A 6,774 7,046 69 Carlsberg Brewery A/S 4,934 6,721 195 Coloplast A/S Cl. B 7,459 9,489 373 Danske Bank A/S 5,194 6,275 296 Novo Nordisk A/S Cl. B 38,665 47,689 160 Novozymes A/S Series B 4,864 4,483 1,600 TDC A/S 10,838 11,268 85,257 100,468

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Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Finland 217 Fortum OYJ 4,823 4,029 117 Kone OYJ Cl. B 6,215 8,572 187 Metso Corporation 8,741 7,864 2,552 Nokia OYJ 14,875 9,804 158 Nokian Renkaat OYJ 7,071 6,234 223 Sampo OYJ Series A 5,532 7,123 886 Stora Enso OYJ 6,738 6,096 454 UPM-Kymmene Corporation 4,712 5,245 219 Wartsila Corporation Cl. B 6,952 9,382 65,659 64,349

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France 153 Accor SA 4,651 5,353 268 Air Liquide SA 30,723 33,428 168 Alstom 5,357 6,642 54 Arkema 5,006 5,616 1,231 AXA SA 16,448 21,561 781 BNP Paribas 31,391 43,580 154 Bouygues SA 5,022 4,513 47 Bureau Veritas SA 5,217 5,206 150 CAP Gemini SA 5,557 6,471 529 Carrefour SA 12,582 13,429 76 Casino Guichard-Perrachon 6,570 7,192 62 Christian Dior SA 7,961 10,436 114 Cie Generale des Etablissements Michelin 6,590 10,715 329 Compagnie de Saint-Gobain SA 13,803 13,881 240 Compagnie Generale de Geophysique-Veritas 7,107 7,118 764 Credit Agricole SA 5,076 6,101 35 Dassault Systemes SA 2,852 3,871 254 Edenred 7,683 7,754 229 Electricite de France 6,170 4,196 113 Essilor International SA 8,538 11,276 187 Eutelsat Communications 7,077 6,158 1,332 France Telecom SA 21,624 14,550 917 GDF Suez 22,419 18,734 439 Groupe Danone 28,216 28,698 596 Groupe Eurotunnel SA 4,798 4,568 30 Ilias SA 5,302 5,101 145 Lafarge SA 4,991 9,168 180 Legrand SA 5,788 7,522 179 L’Oréal SA 20,700 24,630 180 LVMH Moet Hennessy Louis Vuitton SA 27,955 32,791 165 Pernod-Ricard SA 15,813 18,882 71 Pinault-Printemps-Redoute SA 11,897 13,088 107 Publicis Groupe SA 4,838 6,349 138 Renault SA 4,737 7,371 201 Safran SA 6,248 8,577 921 Sanofi 68,732 86,134 375 Schneider Electric SA 21,250 26,971 236 SCOR SE 6,268 6,321 490 Societe Generale 12,345 18,232 72 Sodexho Alliance SA 4,975 6,019 69 Suez Environnement SA 910 822 67 Technip SA 5,803 7,630 1,561 Total SA 79,232 79,931 ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Number of Shares Security

72 Unibail 80 Vallourec SA 237 Veolia Environnement 391 Vinci SA 1,099 Vivendi Universal SA

13,114 5,293 2,663 16,744 23,108 647,144

17,200 4,148 2,849 18,422 24,451 733,656

Hong Kong 7,600 AIA Group Ltd. 25,584 29,504 1,859 Bank of East Asia, Ltd. 6,548 7,086 2,500 BOC Hong Kong Holdings Ltd. 6,219 7,716 1,000 Cheung Kong (Holdings) Limited 11,457 15,207 1,500 CLP Holdings Limited 13,464 12,474 2,000 Galaxy Entertainment Group Limited 5,578 7,777 1,000 Hang Lung Properties Ltd. 3,438 3,946 600 Hang Seng Bank Limited 7,304 9,132 1,023 Henderson Land Development Company Ltd. 6,255 7,175 5,500 Hong Kong & China Gas Company Limited 12,292 14,858 930 Hong Kong Exchanges & Clearing Limited 14,478 15,730 2,000 Hutchison Whampoa Limited 19,118 20,752 4,000 Li & Fung Limited 8,761 7,023 1,000 MTR Corporation Limited 3,945 3,908 2,115 New World Development Company Limited 2,558 3,252 1,000 Power Assets Holdings Inc. 7,641 8,470 4,136 Sino Land Company, Limited 7,229 7,357 2,000 SJM Holdings Limited 4,509 4,605 1,055 Sun Hung Kai Properties Limited 12,612 15,732 500 Swire Pacific Limited Cl. A 6,181 6,147 2,447 Swire Properties Limited 8,011 8,102 1,591 The Link REIT 5,629 7,912 1,000 The Wharf (Holdings) Limited 5,017 7,726 1,000 Wheelock and Company Limited 4,392 5,005 208,220 236,596

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Ireland 362 Accenture PLC 22,257 23,945 277 Covidien PLC 14,219 15,907 583 CRH PLC 10,715 11,658 304 Eaton Corp PLC 14,243 16,390 404 Elan Corporation PLC 5,414 4,037 200 Ingersoll-Rand PLC 6,591 9,541 619 James Hardie Industries SE 5,829 5,831 160 Kerry Group PLC 5,936 8,351 9 Prothena Corp PLC 72 60 300 Seagate Technology PLC 7,409 9,096 220 XL Group PLC 4,547 5,482 97,232 110,298

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Germany 169 Adidas-Salomon AG 12,244 14,926 351 Allianz AG 37,077 48,205 688 BASF SE 52,995 64,388 621 Bayer AG 43,046 58,623 253 Bayerische Motoren Werke (BMW) AG 18,653 24,276 99 Beiersdorf AG 6,017 8,024 57 Brenntag AG 6,689 7,407 2,471 Commerzbank AG 4,693 4,656 94 Continental AG 9,245 10,794 629 Daimler AG 30,695 34,169 693 Deutsche Bank AG 27,492 29,999 164 Deutsche Boerse AG 10,294 9,919 308 Deutsche Lufthansa AG 5,077 5,771 722 Deutsche Post AG 12,244 15,703 1,926 Deutsche Telekom AG 22,472 21,765 1,335 E.ON AG 30,590 24,679 170 Fresenius Medical Care AG & Co. KGaA 11,952 11,665 101 Fresenius SE 10,094 11,570 248 GEA Group AG 7,843 7,968 68 Hannover Rueckversicherungs AG 4,977 5,252 119 Heidelberg Cement AG 4,692 7,137 107 Henkel AG & Co. KGaA 7,327 7,256 225 Henkel AG & Co. KGaA Preferred 16,023 18,333 598 Infineon Technologies AG 4,811 4,826 89 K+S AG 4,770 4,069 129 Kabel Deutschland Holding AG 6,651 9,554 79 Lanxess 4,327 6,876 132 Linde AG 20,604 22,860 18 MAN SE 1,882 1,906 51 Merck KGaA 4,962 6,672 118 Metro AG 5,098 3,247 127 Muenchener Rueckversicherungs Gesellschaft AG 15,659 22,686 86 Porsche AG Preferred Non-Voting 4,860 6,946 194 RWE AG 7,535 7,951 209 RWE AG Preferred Non-Voting 7,422 7,807 691 SAP AG 43,818 55,134 619 Siemens AG 59,704 66,749 206 ThyssenKrupp AG 5,024 4,818 27 Volkswagen AG 5,336 5,780 99 Volkswagen AG Preferred 15,971 22,428 610,865 712,794 Greece 305 Coca-Cola Hellenic Bottling Company SA 5,730 6,944 Guernsey 1,302 Resolution Ltd. 4,597 5,203 ING DIRECT Annual Financial Statements December 31, 2012

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Average Cost ($)

Fair % of Net Value ($) Assets

Israel 1,515 Bank Hapoalim Ltd. 5,506 6,427 1,927 Bank Leumi Le-Israel 5,873 6,476 4,465 Bezeq Israeli Telecommunication Corp. 8,297 5,077 441 Israel Chemicals Limited 4,783 5,240 657 Teva Pharmaceutical Industries Ltd. 27,594 24,267 52,053 47,487

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Italy 996 Assicurazioni Generali SPA 16,259 17,955 386 Atlantia SPA 5,942 6,928 4,662 Enel SPA 18,937 19,208 1,961 Eni SPA 42,525 47,220 11

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

597 Fiat Industrial SPA 5,464 1,078 Fiat SPA 6,391 8,674 Intesa Sanpaolo SPA 13,393 161 Luxottica Group SPA 6,552 239 Saipem SPA 10,190 1,082 Snam Rete Gas SPA 4,995 14,496 Telecom Italia SPA 13,355 1,816 Terna SPA 6,656 1,241 UBI Banca - Unione di Banche Italiane ScpA 5,656 2,796 UniCredit SPA 15,997 172,312

Fair % of Net Value ($) Assets

6,467 5,364 13,518 6,568 9,194 4,992 12,410 7,205 5,709 13,598 176,336

Japan 400 AEON Co., Ltd. 5,699 4,524 200 Aisin Seiki Co., Ltd. 5,770 6,115 1,000 Ajinomoto Co., Inc. 11,806 13,123 1,000 Asahi Glass Company, Limited 8,219 7,164 200 Asahi Group Holdings, Ltd. 4,480 4,218 2,000 Asahi Kasei Corporation 12,253 11,642 400 Astellas Pharma Inc. 16,338 17,773 800 Bridgestone Corp. 18,888 20,400 900 Canon Inc. 37,170 34,513 100 Central Japan Railway Company 9,057 8,014 300 Chubu Electric Power Co., Inc. 5,618 3,940 200 CHUGAI Pharmceuticals Co., Ltd. 3,735 3,791 1,000 Dai Nippon Printing Co., Ltd. 10,106 7,727 400 Daiichi Sankyo Company, Limited 7,354 6,067 200 Daikin Industries, Ltd. 5,840 6,756 100 Daito Trust Construction Company Ltd. 9,044 9,334 1,000 Daiwa House Industry Co., Ltd. 13,872 16,947 1,000 Daiwa Securities Group Inc. 3,326 5,431 200 DeNa Co., Ltd. 7,285 6,526 400 Denso Corp. 12,477 13,649 200 Dentsu Inc. 6,343 5,293 200 East Japan Railway Company 12,618 12,790 300 Eisai Co., Ltd. 12,340 12,400 200 Fanuc Corporation 33,860 36,534 1,000 Fuji Heavy Industries Ltd. 9,570 12,331 500 FUJIFILM Holdings Corporation 12,342 9,886 1,000 Fujitsu Ltd. 5,245 4,122 1,000 Hankyu Holdings, Inc. 5,016 5,109 3,000 Hitachi, Ltd. 16,765 17,360 1,200 Honda Motor Co., Ltd. 38,320 43,331 400 Hoya Corporation 8,715 7,757 2 INPEX Corporation 13,626 10,494 800 Isetan Mitsukoshi Holdings Ltd. 8,806 7,725 1,000 Isuzu Motors Limited 5,359 5,867 1,200 Itochu Corporation 12,817 12,483 1 Japan Real Estate Investment Corporation 8,598 9,725 600 Japan Tobacco Inc. 15,960 16,809 300 JFE Holding, Inc. 5,053 5,518 2,300 JX Holdings, Inc. 14,409 12,728 1,000 Kaneka Corporation 5,460 4,994 300 Kao Corporation 8,003 7,747 1,000 Kawasaki Heavy Industries Limited 2,745 2,664

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Number of Shares Security

Average Cost ($)

200 KDDI Corporation 1,000 Keikyu Corporation 1,000 Keio Corporation 100 Keyence Corporation 1,000 Kintetsu Corp. 1,000 Kirin Holdings Company, Limited 2,000 Kobe Steel Ltd. 600 Komatsu Ltd. 1,000 Kubota Corporation 400 Kuraray Company Limited 100 Kyocera Corporation 300 Kyushu Electric Power Company, Incorporated 100 Lawson, Inc. 300 LIXIL Group Corporation 200 Makita Corporation 1,000 Marubeni Corp. 4,000 Mazda Motor Corporation 1,000 Mitsubishi Chemical Holdings Corp. 1,100 Mitsubishi Corporation 2,000 Mitsubishi Electric Corporation 1,000 Mitsubishi Estate Company, Limited 2,000 Mitsubishi Heavy Industries Ltd. 4,000 Mitsubishi Motors Corporation 11,500 Mitsubishi UFJ Financial Group, Inc. 2,300 Mitsui & Co. 1,000 Mitsui Fudosan Co. Ltd. 2,000 Mitsui O.S.K. Lines Ltd. 19,300 Mizuho Financial Group, Inc. 300 MS&AD Insurance Group Holdings, Inc. 200 Murata Manufacturing Company, Ltd. 2,000 NEC Corporation 100 Nidec Corporation 200 Nikon Corporation 100 Nintendo Co., Ltd. 1 Nippon Building Fund Inc. 5,000 Nippon Steel Corporation 300 Nippon Telegraph and Telephone Corporation 3,000 Nippon Yusen Kabushiki Kaisha 1,900 Nissan Motor Co., Ltd. 100 Nitto Denko Corp. 200 NKSJ Holdings, Inc. 2,800 Nomura Holdings, Inc. 1 Nomura Real Estate Office Fund, Inc. 2 NTT Data Corporation 12 NTT DoCoMo, Inc. 1,000 Odakyu Electric Railway Co., Ltd. 300 Olympus Optical Co., Ltd. 300 Omron Corporation 100 ONO Pharmaceutical Co., Ltd. 100 Oriental Land Co., Ltd. 60 Orix Corporation 1,000 Osaka Gas Co., Ltd. 200 Otsuka Holdings KK 1,200 Panasonic Corporation

Fair % of Net Value ($) Assets

13,844 9,666 7,286 24,831 3,944 12,288 2,481 16,162 8,855 5,764 8,786

13,962 8,772 7,371 27,360 4,053 11,619 2,503 15,032 11,309 5,162 8,921

4,230 6,719 6,500 8,164 6,389 6,381 5,651 23,972 16,849 16,885 8,598 4,921 52,636 33,522 15,949 9,251 28,014 5,816 11,345 4,164 8,922 4,599 14,490 10,056 10,883

3,382 6,740 6,603 9,105 7,027 7,945 4,880 20,776 16,740 23,514 9,507 4,087 60,737 33,854 23,973 5,810 34,569 5,859 11,527 4,133 5,741 5,798 10,471 10,230 12,056

15,192 8,315 17,625 4,007 4,047 11,094 5,342 6,871 21,512 9,938 5,875 6,623 5,333 12,805 5,005 4,001 6,191 11,001

12,486 6,889 17,692 4,834 4,202 16,171 5,695 6,168 17,085 10,310 5,735 7,068 5,046 12,010 6,668 3,594 5,580 7,178

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

400 Rakuten, Inc. 4,483 1,100 Resona Holdings, Inc. 4,982 1,000 Ricoh Co., Ltd. 7,871 200 Rohm Company Limited 9,874 100 Secom Co., Ltd. 4,759 300 Sega Sammy Holding Inc. 5,851 1,000 Sekisui House, Ltd. 8,787 500 Seven & I Holdings Co. Ltd. 14,197 1,000 Sharp Corporation 10,382 200 Shikoku Electric Power Company Incorporated 5,775 100 Shimano Inc. 5,964 300 Shin-Etsu Chemical Co., Ltd. 15,385 200 Shionogi & Co., Ltd. 2,851 300 Shiseido Company, Limited 5,649 100 SMC Corporation 15,843 600 SOFTBANK Corporation 19,426 900 Sony Corporation 16,352 1,000 Sumitomo Chemical Company Ltd. 3,528 1,000 Sumitomo Corp. 14,314 500 Sumitomo Electric Industries, Ltd. 5,151 1,000 Sumitomo Metal Mining Co, Ltd. 13,061 1,200 Sumitomo Mitsui Financial Group Inc. 35,159 2,000 Sumitomo Mitsui Trust Holdings, Inc. 6,354 400 Sumitomo Rubber Industries Ltd. 4,790 200 Suzuki Motor Corporation 4,137 500 T&D Holdings, Inc. 4,603 600 Takeda Pharmaceutical Company Limited 26,004 100 TDK Corporation 4,537 100 Terumo Corporation 5,015 1,000 The Bank of Yokohama, Ltd. 5,069 1,000 The Chiba Bank Ltd. 6,444 400 The Chugoku Electric Power Co. Inc. 7,575 5 The Dai-ichi Life Insurance Company Ltd. 5,238 700 The Kanzai Electric Power Company, Incorporated 11,394 1,000 The Shizuoka Bank, Ltd. 10,407 1,000 Tobu Railway Company 5,164 500 Tohoku Electric Power Co., Inc. 5,838 600 Tokio Marine Holdings, Inc. 15,012 1,700 Tokyo Electric Power Co. 4,752 100 Tokyo Electron Limited 5,299 2,000 Tokyo Gas Co., Ltd. 8,961 1,000 Tokyu Corporation 5,205 1,000 Toppan Printing Co., Ltd. 7,597 1,000 Toray Industries, Inc. 7,814 3,000 Toshiba Corp. 12,145 300 Toyota Industries Corp. 8,118 2,000 Toyota Motor Corporation 72,364 500 Toyota Tsusho Corporation 11,427 100 UniCharm Corp. 5,398 100 West Japan Railway Company 4,441 19 Yahoo! Japan Corporation 6,311 100 Yakult Honsha Co., Ltd. 4,353 70 Yamada Denki Co., Ltd. 5,375 300 Yamato Holdings Co. Ltd. 5,171 1,601,853 ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

3,082 4,938 10,402 6,391 4,972 5,012 10,804 13,990 3,479

Average Cost ($)

Fair % of Net Value ($) Assets



3,146 6,303 18,015 3,300 4,188 17,831 21,597 9,889 3,077 12,618 5,666 13,847 42,780 6,889 4,744 5,148 5,965

Jersey 196 Delphi Automotive PLC 7,042 7,455 2,583 Glencore International PLC 15,874 14,650 91 Randgold Resources Limited 9,909 8,734 417 Shire PLC 14,079 12,695 159 Wolseley PLC 4,879 7,443 51,783 50,977

0.2

Luxembourg 767 ArcelorMittal 14,698 12,990 48 Millicom International Cellular SA SDR 4,960 4,130 206 SES Global FDR 4,969 5,854 266 Subsea 7 SA 4,904 6,289 280 Tenaris SA 4,764 5,724 34,295 34,987

0.1

Mauritius 13,000 Golden Agri-Resources Limited 6,981 6,828

–

Netherlands 1,220 AEGON NV 4,756 7,681 172 Akzo Nobel NV 8,400 11,200 268 ASML Holding NV 12,348 16,865 533 DE Master Blenders 1753 NV 6,007 6,088 374 European Aeronautic Defence and Space Company 12,557 14,437 16 Fugro NV 950 932 42 Gemalto NV 2,762 3,741 123 Heineken Holding NV 4,903 6,676 200 Heineken NV 9,899 13,211 2,918 ING Groep NV 22,093 27,018 987 Koninklijke (Royal) KPN NV 11,468 4,813 745 Koninklijke (Royal) Philips Electronics NV 14,820 19,426 756 Koninklijke Ahold NV 10,009 10,060 104 Koninklijke DSM NV 4,748 6,238 105 Koninklijke Vopak NV 7,323 7,322 247 LyondellBasell Industries NV 12,514 14,031 403 Qiagen NV 6,292 7,249 98 Randstad Holdings NV 3,575 3,558 441 Reed Elsevier NV 5,162 6,456 686 STMicroelectronics NV 5,243 4,820 396 TNT Express NV 4,927 4,383 1,251 Unilever NV 42,902 47,247 459 Wolters Kluwer NV 8,765 9,323 155 Ziggo NV 4,815 5,018 227,238 257,793

26,557 3,565 3,909 4,581 5,787 6,205 6,883 7,266 9,656 5,224 4,610 16,382 4,001 4,512 9,047 5,557 6,097 6,039 11,573 9,393 91,852 12,136 5,155 3,904 6,071 4,329 2,668 4,502 1,622,394

Number of Shares Security

New Zealand 381 Fletcher Building Limited 1,912 2,618 2,598 Telecom Corporation of New Zealand Limited 5,022 4,827 6,934 7,445

0.8

–

4.8 13

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Norway 640 DnB Holding ASA 7,274 8,052 1,008 Norsk Hydro ASA 4,648 5,003 694 Orkla ASA 5,027 6,012 918 StatoilHydro ASA 22,830 22,838 451 Telenor ASA 8,192 9,040 117 Yara International ASA 4,741 5,721 52,712 56,666 Portugal 1,566 Electricidade de Portugal SA 4,995 4,690 371 Jeronimo Martins, SGPS, SA 7,323 7,111 772 Portugal Telecom SGPS, SA 5,063 3,783 17,381 15,584

0.2

–

Singapore 3,000 Capitaland Limited 5,923 9,039 5,000 ComfortDelGro Corporation Limited 5,884 7,227 1,040 DBS Group Holdings Limited 10,275 12,551 1,000 Fraser and Neave Limited 4,866 7,882 3,000 Global Logistic Properties Limited 6,859 6,791 1,000 Keppel Corporation Limited 8,462 8,949 2,000 Oversea-Chinese Banking Corporation Limited 13,589 15,846 1,000 Singapore Airlines Limited 8,344 8,754 1,000 Singapore Exchange Limited 5,372 5,700 3,000 Singapore Press Holdings Limited 8,868 9,820 6,000 Singapore Telecommunications Limited 14,864 16,074 1,000 StarHub Limited 2,330 3,070 1,000 United Overseas Bank Ltd. 12,189 16,131 1,000 Wilmar International Ltd. 4,068 2,712 111,893 130,546

0.4

Spain 356 Abertis Infraestructuras SA 5,446 5,796 227 ACS, Actividades de Construccion y Servicios SA 7,311 5,514 300 Amadeus IT Holding SA Series A 5,189 7,466 3,857 Banco Bilbao Vizcaya Argentaria SA 30,009 34,957 2,571 Banco de Sabadell SA 7,708 6,633 1,171 Banco Popular Espanol SA 5,163 896 7,904 Banco Santander SA 55,902 62,266 254 Enagas 5,032 5,329 724 Ferrovial SA 7,071 10,627 317 Gas Natural SDG SA 5,371 5,598 157 Grifols SA 4,989 5,434 2,757 Iberdrola SA 16,026 14,914 171 Industria de Diseno Textil SA 16,986 23,574 149 Red Electrica Corporacion SA 6,580 7,248 658 Repsol SA, Rights (Exp. 02/21/13) – 398 658 Repsol YPF, SA 18,034 13,218 2,817 Telefonica SA 41,062 37,356 237,879 247,224

0.7

Sweden 315 AB SKF Series B 5,920 7,858 383 Alfa Laval AB 7,793 7,926

14

Number of Shares Security

Average Cost ($)

319 Assa Abloy AB Series B 8,553 186 Atlas Copco AB Series A 4,248 664 Atlas Copco AB Series B 13,660 431 Boliden AB 7,381 247 Electrolux AB Series B NPV 5,675 341 Elekta AB Series B 4,887 295 Getinge AB 8,106 713 Hennes & Mauritz AB Cl. B 23,100 305 Hexagon AB Series B 6,160 340 Industrivarden AB 4,216 771 Investor AB Series B 15,515 214 Lundin Petroleum AB 5,106 1,971 Nordea Bank AB 17,206 598 Sandvik AB NPV 6,886 98 Scania AB Cl. B NPV 1,830 870 Skandinaviska Enskilda Banken Series A 4,765 104 Skanska AB Series B 1,699 387 Svenska Cellulosa AB 5,777 284 Svenska Handelsbanken AB Series A 7,535 433 Swedbank AB Series A 5,513 151 Swedish Match AB 4,848 267 Tele2 AB Series B 5,271 2,135 Telefonaktiebolaget LM Ericsson Cl. B 21,428 1,722 Teliasonera AB 11,048 1,191 Volvo AB Series B 14,809 228,935

Fair % of Net Value ($) Assets

11,852 5,073 16,057 8,043 6,438 5,278 9,927 24,473 7,609 5,601 20,036 4,890 18,722 9,467 2,013 7,352 1,688 8,346 10,095 8,405 5,040 4,782 21,243 11,605 16,177 265,996

0.8

Switzerland 1,740 ABB Ltd. 32,012 35,480 197 ACE Limited 15,218 15,635 65 Actelion Ltd. 2,287 3,077 145 Adecco SA 6,215 7,575 137 Aryzta AG 6,625 6,980 83 Baloise Holding Ltd. 6,301 7,068 419 Compagnie Financiere Richemont SA 24,856 32,512 945 Credit Suisse Group 21,097 22,877 100 Garmin Ltd. 4,181 4,059 26 Geberit AG 5,038 5,692 6 Givaudan SA 5,184 6,284 218 Holcim Ltd. 13,144 15,837 141 Julius Baer Group Ltd. 4,953 4,956 39 Kuehne & Nagel International AG 4,751 4,666 1 Lindt & Spruengli AG 2,957 3,230 2,404 Nestlé SA 143,368 155,818 179 Noble Corporation 5,678 6,198 1,739 Novartis AG 97,736 108,649 100 Pentair Ltd. Registered 4,327 4,889 533 Roche Holding AG 90,564 106,655 45 Schindler Holding AG 5,252 6,455 3 SGS Societe Generale de Surveillance Holding SA 4,994 6,610 1 Sika AG 1,865 2,294 50 Sonova Holding AG 5,035 5,514 146 Swatch Group 20,067 22,055 10 Swiss Life Holding 1,047 1,319 312 Swiss Re Ltd. 18,686 22,360 13 Swisscom AG 4,936 5,567 69 Syngenta AG Registered 21,987 27,509 ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Number of Shares Security

353 TE Connectivity Limited 275 Transocean Ltd. 110 Tyco International Ltd. 2,638 UBS AG 121 Zurich Financial Services AG

11,740 13,076 5,439 31,667 27,950 670,233

13,034 12,064 3,198 40,939 32,016 759,071

28,656 Lloyds TSB Group PLC 12,203 969 Marks & Spencer Group PLC 4,910 872 Meggitt PLC 4,835 745 Melrose Industries PLC 2,538 2,493 National Grid PLC 25,961 112 Next PLC 4,901 3,227 Old Mutual PLC 7,719 504 Pearson PLC 9,303 224 Petrofac Limited 4,750 1,827 Prudential PLC 17,806 469 Reckitt Benckiser Group PLC 25,503 596 Reed Elsevier PLC 4,947 933 Rexam PLC 6,082 1,104 Rio Tinto PLC 56,888 1,377 Rolls-Royce Holdings PLC 15,868 140 Rowan Companies PLC 4,668 7,591 Royal & Sun Alliance Insurance Group PLC 14,038 1,456 Royal Bank of Scotland Group PLC 5,230 2,209 Royal Dutch Shell PLC Cl. A 69,514 2,577 Royal Dutch Shell PLC Cl. B 94,119 707 SABMiller PLC 27,294 136 Serco Group PLC 1,137 212 Severn Trent PLC 4,966 544 Smith & Nephew PLC 5,082 337 Smiths Group PLC 4,770 676 SSE PLC 14,560 1,842 Standard Chartered PLC 41,169 1,616 Standard Life PLC 4,991 802 Tate & Lyle PLC 8,344 6,067 Tesco PLC 33,583 1,196 The Sage Group PLC 5,210 182 The Weir Group PLC 5,978 852 Tullow Oil PLC 18,386 924 Unilever PLC 31,270 527 United Utilities Group PLC 5,000 37,305 Vodafone Group PLC 102,400 260 Whitbread PLC 6,657 983 William Morrison Supermarkets PLC 4,503 909 WPP PLC 10,481 1,580 Xstrata PLC 24,675 1,660,467

1,537 175 330 968 281 200 1,125 316 957 2,904 482 2,524 8,349 2,644 1,482 14,554 1,497 652 936 5,780 390 244 464 151 3,503 1,572 65 1,788 100 547 169 1,304 4,000 1,763 3,864 1,169 13,866 78 760 599 268 74 4,941 1,035 189 1,260 475 3,006

United Kingdom Aberdeen Asset Management PLC 8,265 9,105 Aggreko PLC 4,883 4,920 AMEC PLC 5,692 5,343 Anglo American PLC 34,046 29,617 Antofagasta PLC 4,610 6,003 AON PLC 9,303 11,061 ARM Holdings PLC 10,372 13,934 Associated British Foods PLC 5,868 7,976 AstraZeneca PLC 43,993 44,976 Aviva PLC 15,566 17,498 Babcock International Group PLC 5,728 7,516 BAE Systems PLC 11,442 13,740 Barclays PLC 25,664 35,352 BG Group PLC 55,780 43,214 BHP Billiton PLC 44,775 50,995 BP PLC 103,792 99,888 British American Tobacco PLC 73,055 75,458 British Land Company, PLC 4,814 5,921 British Sky Broadcasting Group PLC 10,448 11,585 BT Group PLC 17,607 21,584 Bunzl PLC 4,937 6,352 Burberry Group PLC 4,690 4,834 Capita Group PLC 4,795 5,661 Carnival PLC 5,095 5,753 Centrica PLC 15,964 18,883 Compass Group PLC 14,926 18,416 Croda International PLC 2,312 2,495 Diageo PLC 42,253 51,600 Ensco PLC Cl.A 5,536 5,894 Experian Group Ltd. 6,947 8,657 Fresnillo PLC 5,080 5,038 G4S PLC 5,495 5,405 Genting International PLC 5,137 4,495 GKN PLC 6,179 6,518 GlaxoSmithKline PLC 86,244 83,290 Hammerson Property & Investment Development Corporation PLC 7,316 9,220 HSBC Holdings PLC 115,267 144,917 IMI PLC 1,098 1,378 Imperial Tobacco Group PLC 28,626 29,117 Inmarsat PLC 5,503 5,623 InterContinental Hotels Group PLC 5,013 7,388 Intertek Group PLC 2,422 3,701 ITV PLC 6,273 8,399 J Sainsbury PLC 4,911 5,768 Johnson Matthey PLC 5,704 7,247 Kingfisher PLC 5,045 5,776 Land Securities Group PLC 4,876 6,240 Legal & General Group PLC 4,881 7,072

ING DIRECT Annual Financial Statements December 31, 2012

2.3

350 921 300 577 200 274 200 127 157 62 162 800 127 178

Average Cost ($)

Fair % of Net Value ($) Assets

22,186 5,986 5,382 2,690 28,299 6,705 9,276 9,675 5,874 25,506 29,373 6,173 6,573 62,623 19,413 4,353 15,406 7,632 75,707 90,505 32,233 1,176 5,392 5,969 6,464 15,478 46,789 8,664 9,855 32,939 5,687 5,511 17,291 35,310 5,727 93,071 10,255 4,176 13,028 26,985 1,812,160

5.4

United States 3M Co. 29,635 32,325 Abbott Laboratories 53,172 60,015 Adobe Systems Inc. 8,295 11,241 Advanced Micro Devices Incorporated 3,506 1,377 Aetna Inc. 8,190 9,213 AFLAC Incorporated 13,374 14,475 Agilent Technologies, Inc. 7,432 8,147 AGL Resources Inc. 4,882 5,047 Air Products and Chemicals Inc. 13,315 13,123 Airgas, Inc. 5,001 5,630 Akamai Technologies, Inc. 6,099 6,591 Alcoa Inc. 7,865 6,899 Alexion Pharmaceuticals Inc. 11,745 11,841 Allergan, Inc. 16,008 16,234 15

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

242 1,218 215 256 308 617 936 212 176 227 435 107 265 193 225 128 104 590 800 405 3,407 220 263 25 74 291 257 139 6,671 689 314 381 97 120 175 1,132 108 136 78 150 89 100 1,455 956 366 123 103 70 326 170 202 160 351 200 203 111

16

Average Cost ($)

Altera Corp. 9,201 Altria Group Inc. 36,134 Amazon.com, Inc. 42,366 Ameren Corp. 8,079 American Electric Power Company, Inc. 12,299 American Express Company 32,468 American International Group, Inc. 29,711 American Tower Corp. 14,820 Ameriprise Financial, Inc. 8,339 AmerisourceBergen Corporation 8,402 Amgen Inc. 30,057 Amphenol Corp. Cl. A 6,909 Anadarko Petroleum Corporation 19,196 Analog Devices, Inc. 7,604 Apache Corporation 20,013 Apartment Investment & Management Company Cl. A 3,630 Apollo Group, Inc. 3,539 Apple Computer, Inc. 290,116 Applied Materials, Inc. 9,045 Archer-Daniels-Midland Company 11,066 AT&T Inc. 104,147 Autodesk, Inc. 8,238 Automatic Data Processing, Inc. 14,862 AutoZone, Inc. 9,325 Avalonbay Communities, Inc. 9,662 Avon Products, Inc. 5,364 Baker Hughes Inc. 13,483 Ball Corp. 5,495 Bank of America Corporation 50,620 Bank of New York Mellon Corporation 15,596 Baxter International Inc. 17,821 BB&T Corporation 12,067 Beam, Inc. 5,412 Becton, Dickinson and Company 8,983 Bed Bath & Beyond Inc. 11,343 Berkshire Hathaway Inc. Cl. B 92,574 Best Buy Co. Inc. 2,766 Biogen Idec Inc. 17,201 BlackRock, Inc. 14,366 BMC Software, Inc. 5,501 BorgWagner, Inc. 7,277 Boston Properties, Inc. 9,604 Boston Scientific Corporation 8,640 Bristol-Myers Squibb Company 31,083 Broadcom Corporation Cl. A 12,757 Brown Forman Corp. 6,602 C.H. Robinson Worldwide, Inc. 7,267 C.R. Bard Inc. 6,478 CA Inc. 8,593 Cabot Oil & Gas Corporation 5,426 Cameron International Corporation 9,931 Campbell Soup Co. 5,278 Capital One Financial Corp. 17,751 Cardinal Health, Inc. 8,441 CareFusion Corporation 5,097 CarMax, Inc. 3,337

Fair % of Net Value ($) Assets

8,293 38,079 53,737 7,825 13,073 35,277 32,866 16,288 10,964 9,750 37,363 6,886 19,590 8,073 17,564 3,444 2,164 312,815 9,096 11,030 114,275 7,731 14,912 8,815 9,978 4,160 10,443 6,186 77,040 17,620 20,820 11,032 5,893 9,334 9,727 101,092 1,272 19,832 16,039 5,916 6,340 10,525 8,279 31,010 12,087 7,734 6,478 6,805 7,124 8,413 11,342 5,551 20,229 8,192 5,771 4,145

Number of Shares Security

Average Cost ($)

300 Carnival Corporation 10,002 371 Caterpillar Inc. 34,286 289 CBRE Group, Inc. 5,224 354 CBS Corporation Cl. B 11,682 274 Celgene Corporation 19,546 383 Centerpoint Energy Inc. 7,183 364 CenturyLink Inc. 13,872 120 Cerner Corporation 8,504 42 CF Industries Holdings, Inc. 6,526 262 Chesapeake Energy Corporation 5,767 1,230 Chevron Corporation 129,991 23 Chipotle Mexican Grill, Inc. Cl. A 7,929 200 CIGNA Corporation 8,788 146 Cincinnati Financial Corp. 5,075 122 Cintas Corporation 4,699 3,279 Cisco Systems, Inc. 62,149 1,816 Citigroup Inc. 55,280 146 Citrix Systems, Inc. 10,949 100 Cliffs Natural Resources Inc. 6,888 100 Clorox Company 6,661 205 CME Group Inc. 10,173 238 CMS Energy Corp. 5,177 200 Coach, Inc. 12,416 182 Coca-Cola Eneterprises Inc. 4,768 217 Cognizant Technology Solutions Corp. Cl. A 15,300 268 Colgate-Palmolive Company 26,094 1,528 Comcast Corporation Cl. A 42,076 179 Comerica Inc. 5,121 172 Computer Sciences Corporation 4,808 300 ConAgra Foods, Inc. 7,535 727 ConocoPhillips 40,516 173 CONSOL Energy Inc. 6,840 137 Consolidated Edison Inc. 8,075 956 Corning Incorporated 11,662 251 Costco Wholesale Corp. 21,563 155 Coventry Health Care, Inc. 4,892 148 Crown Castle International Corp. 7,692 387 CSX Corp. 8,212 82 Cummins Inc. 8,281 721 CVS Caremark Corporation 31,129 286 D.R. Horton Inc. 4,845 307 Danaher Corporation 16,181 112 Darden Restaurants, Inc. 5,655 56 DaVita HealthCare Partners Inc. 4,781 225 Deere & Company 18,494 500 Dell Inc. 7,996 436 Denbury Resources Inc. 8,090 129 DENTSPLY International Inc. 4,951 245 Devon Energy Corporation 14,366 77 Diamond Offshore Drilling Inc. 4,838 383 DIRECTV 18,392 314 Discover Financial Services 10,985 145 Discovery Communications Inc. Series A 6,444 200 Dollar General Corp. 9,928 172 Dollar Tree, Inc. 7,317 329 Dominion Resources, Inc. 16,859

Fair % of Net Value ($) Assets

10,970 33,073 5,724 13,398 21,436 7,330 14,164 9,266 8,485 4,329 132,405 6,796 10,631 5,684 4,961 64,091 71,496 9,547 3,836 7,284 10,336 5,769 11,045 5,746 15,979 27,874 56,814 5,399 6,852 8,803 41,950 5,524 7,566 11,991 24,670 6,909 10,622 7,591 8,838 34,690 5,621 17,076 5,021 6,155 19,341 5,038 7,026 5,081 12,682 5,205 19,113 12,041 9,156 8,775 6,939 16,952

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

100 200 75 405 530 130 696 200 200 88 303 580 1,336 422 100 145 146 118 200 549 55 200 461 2,835 64 57 200 169 101 600 245 100 47 100 118 208 2,185 200 46 100 544 948 215 6,592 370 123 444 163 159 200 568 180 118 130 231

Average Cost ($)

Dover Corporation 5,322 Dr. Pepper Snapple Group, Inc. 7,440 DTE Energy Company 3,945 Duke Energy Corporation 25,647 E.I. du Pont de Nemours and Company 25,034 Eastman Chemical Company 6,893 eBay Inc. 25,612 Ecolab Inc. 11,353 Edison International 8,123 Edwards Lifesciences Corporation 6,935 Electronic Arts Inc. 4,980 Eli Lilly and Company 25,658 EMC Corporation 34,298 Emerson Electric Co. 20,917 Entergy Corporation 7,091 EOG Resources, Inc. 14,549 EQT Corporation 7,241 Equifax Inc. 5,444 Equity Residential 11,216 Exelon Corp. 19,989 Expedia, Inc. 2,551 Expeditors International of Washington, Inc. 8,726 Express Scripts Holding Company 25,090 Exxon Mobil Corporation 237,791 F5 Networks, Inc. 7,838 Family Dollar Stores Inc. 3,126 Fastenal Company 8,422 FedEx Corp. 15,013 Fidelity National Information Services, Inc. 2,723 Fifth Third Bancorp 7,176 FirstEnergy Corp. 10,958 Fiserv, Inc. 5,809 Flowserve Corporation 5,440 Fluor Corporation 5,421 FMC Corporation 5,850 FMC Technologies, Inc. 9,636 Ford Motor Company 23,123 Forest Laboratories, Inc. 6,024 Fossil, Inc. 5,918 Franklin Resources, Inc. 9,913 Freeport-McMoran Copper & Gold, Inc. 21,288 Frontier Communications Corporation 3,759 General Dynamics Corp. 14,538 General Electric Company 121,928 General Mills, Inc. 14,721 Genuine Parts Company 7,675 Gilead Sciences, Inc. 22,339 Google Inc. Cl. A 103,250 H&R Block, Inc. 2,509 H.J. Heinz Company 10,497 Halliburton Company 18,696 Harley-Davidson, Inc. 7,151 Harris Corporation 4,884 Hasbro, Inc. 4,728 HCP, Inc. 10,957

ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

6,541 8,787 4,479 25,698 23,713 8,804 35,329 14,302 8,988 7,889 4,376 28,454 33,635 22,239 6,340 17,420 8,563 6,352 11,268 16,235 3,362 7,866 24,753 244,210 6,180 3,595 9,287 15,422 3,498 9,072 10,172 7,861 6,861 5,848 6,866 8,857 28,146 7,027 4,260 12,503 18,506 4,045 14,814 137,567 14,872 7,775 32,457 114,997 2,935 11,477 19,605 8,746 5,747 4,640 10,377

Number of Shares Security

Average Cost ($)

125 Health Care REIT, Inc. 6,905 116 Helmerich & Payne, Inc. 7,311 109 Hershey Foods Corporation 6,799 200 Hess Corporation 12,142 1,259 Hewlett-Packard Company 26,553 408 Honeywell International Inc. 23,352 153 Hormel Foods Corporation 4,741 136 Hospira, Inc. 5,032 500 Host Hotels & Resorts Inc. 7,230 100 Humana Inc. 8,715 846 Huntington Bancshares Incorporated 5,505 257 Illinois Tool Works Inc. 13,996 86 Integrys Energy Group, Inc. 4,779 3,138 Intel Corporation 76,751 62 IntercontinentalExchange Inc. 8,304 668 International Business Machines Corporation 128,271 83 International Flavours & Fragrances Inc. 4,846 328 International Game Technology 4,809 300 International Paper Co. 8,447 200 Intuit Inc. 10,541 23 Intuitive Surgical, Inc. 12,247 189 Iron Mountain Incorporated 4,869 5,900 iShares MSCI EAFE Index Fund 327,018 500 iShares S&P 500 Index Fund 70,661 130 J.C. Penney Company, Inc. 5,083 178 Jabil Circuit, Inc. 3,467 114 Jacobs Engineering Group Inc. 5,200 1,743 Johnson & Johnson 115,605 487 Johnson Controls, Inc. 15,038 104 Joy Global Inc. 9,888 2,344 JPMorgan Chase & Co. 85,445 300 Juniper Networks, Inc. 6,105 200 Kellogg Co. 10,139 895 KeyCorp 7,025 208 Kimberly-Clark Corporation 16,893 335 Kimco Realty Corp. 6,283 300 Kinder Morgan Inc. 9,894 114 KLA-Tencor Corporation 5,402 127 Kohl’s Corporation 7,167 267 Kraft Foods Group, Inc. 10,284 86 L-3 Communications Holdings, Inc. 5,899 81 Laboratory Corporation of America Holdings 7,300 169 Lam Research Corporation 6,506 168 Lennar Corporation Cl. A 4,726 180 Leucadia National Corporation 4,828 97 Life Technologies Corporation 4,776 140 Limited Brands 5,537 188 Lincoln National Corporation 4,759 188 Linear Technology Corporation 6,017 132 Lockheed Martin Corporation 11,386 200 Loews Corporation 7,723 83 Lorillard, Inc. 9,542 692 Lowe’s Companies, Inc. 19,891 643 LSI Corporation 4,508

Fair % of Net Value ($) Assets

7,621 6,463 7,830 10,532 17,833 25,763 4,747 4,223 7,793 6,827 5,377 15,548 4,467 64,394 7,633 127,291 5,494 4,623 11,889 11,835 11,211 5,834 333,872 71,280 2,550 3,414 4,827 121,537 14,857 6,598 102,566 5,873 11,111 7,496 17,462 6,438 10,543 5,416 5,430 12,071 6,552 6,977 6,072 6,460 4,258 4,737 6,554 4,842 6,411 12,122 8,107 9,631 24,450 4,528

17

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

Average Cost ($)

78 M&T Bank Corporation 7,587 300 Macy’s, Inc. 9,659 415 Marathon Oil Corporation 12,180 200 Marathon Petroleum Corporation 7,100 224 Marriott International, Inc. 7,838 323 Marsh & McLennan Companies, Inc. 10,719 361 Masco Corp. 5,035 61 MasterCard, Inc. 23,837 200 Mattel, Inc. 5,764 112 McCormick & Company, Incorporated Non-Voting 5,657 600 McDonald’s Corporation 56,809 152 Mckesson Corporation 13,438 136 Mead Johnson Nutrition Company Cl. A 9,184 176 MeadWestvaco Corp. 4,909 583 Medtronic, Inc. 22,388 1,915 Merck & Co., Inc. 72,975 609 MetLife, Inc. 20,935 161 Microchip Technology Incorporated 5,628 654 Micron Technology, Inc. 5,213 4,762 Microsoft Corporation 136,150 115 Molson Coors Brewing Company Cl. B 4,956 1,089 Mondelez International Inc. Cl. A 27,015 321 Monsanto Company 25,578 100 Monster Beverage Corporation 7,053 132 Moodys Corporation 5,066 939 Morgan Stanley 15,917 200 Motorola Solutions, Inc. 9,305 100 Murphy Oil Corporation 5,406 200 Mylan Inc. 4,126 245 National-Oilwell Varco Inc. 18,533 200 Netapp Inc. 7,235 41 Netflix Inc. 4,976 169 Newell Rubbermaid Inc. 3,083 150 Newfield Exploration Company 4,937 207 Newmont Mining Corporation 13,314 1,226 News Corporation Cl. A 24,561 271 NextEra Energy, Inc. 16,642 448 Nike Inc. Cl. B 21,879 245 NiSource Inc. 5,767 100 Noble Energy, Inc. 9,332 86 Nordstrom, Inc. 4,294 205 Norfolk Southern Corp. 13,979 250 Northeast Utilities 9,341 200 Northern Trust Corporation 7,611 193 Northrop Grumman Corporation 11,264 200 Nucor Corp. 7,777 540 NVIDIA Corporation 7,839 215 NYSE Euronext 6,293 458 Occidental Petroleum Corporation 42,029 200 Omnicom Group Inc. 8,522 148 ONEOK, Inc. 6,006 2,356 Oracle Corporation 71,150 82 O’Reilly Automotive, Inc. 6,477 200 PACCAR Inc. 7,972 96 Pall Corporation 5,926

18

Fair % of Net Value ($) Assets

7,638 11,644 12,652 12,531 8,304 11,072 5,986 29,831 7,283 7,074 52,663 14,661 8,914 5,579 23,788 78,004 19,948 5,218 4,118 126,566 4,893 27,601 30,222 5,261 6,607 17,859 11,077 5,922 5,465 16,662 6,674 3,781 3,744 3,996 9,562 31,134 18,646 22,994 6,063 10,120 4,577 12,606 9,716 9,977 12,974 8,586 6,601 6,743 34,901 9,941 6,292 78,086 7,295 8,990 5,752

Number of Shares Security

Average Cost ($)

100 Parker-Hannifin Corporation 221 Paychex, Inc. 200 Peabody Energy Corporation 393 People’s United Financial Inc. 250 Pepco Holdings, Inc. 975 PepsiCo, Inc. 75 Perrigo Company 4,414 Pfizer Inc. 251 PG&E Corporation 1,041 Philip Morris International Inc. 397 Phillips 66 109 Pinnacle West Capital Corporation 100 Pioneer Natural Resources Company 142 Plum Creek Timber Company Inc. 308 PNC Financial Services Group 100 PPG Industries Inc. 346 PPL Corp. 159 Praxair, Inc. 89 Precision Castparts Corp. 29 Priceline.com Incorporated 169 Principal Financial Group, Inc. 349 Prologis, Inc. 300 Prudential Financial, Inc. 300 Public Service Enterprise Group Incorporated 78 Public Storage, Inc. 160 QEP Resources Inc. 1,074 QUALCOMM Incorporated 216 Quanta Services, Inc. 119 Quest Diagnostics Incorporated 41 Ralph Lauren Corporation 100 Range Resources Corporation 200 Raytheon Company 177 Red Hat, Inc. 1,214 Regions Financial Corporation 300 Republic Services, Inc. Cl. A 200 Reynolds American Inc. 158 Robert Half International Inc. 100 Rockwell Automation Inc. 121 Rockwell Collins, Inc. 57 Roper Industries, Inc. 144 Ross Stores Inc. 200 Safeway Inc. 61 Salesforce.com, Inc. 201 SanDisk Corporation 115 SCANA Corporation 838 Schlumberger Limited 95 Scripps Networks Interactive Cl. A 129 Sempra Energy 69 Sherwin Williams Company 108 Sigma Aldrich Corporation 182 Simon Property Group, Inc. 273 SLM Corp. 56 Snap-on Incorporated 277 Southwest Airlines Co. 200 Southwestern Energy Company

8,193 7,255 7,153 4,808 4,884 64,741 7,545 93,381 10,488 84,635 13,225 5,344 9,053 5,616 17,834 8,496 10,155 16,751 15,090 17,059 4,662 10,553 14,901 10,030 11,724 5,058 64,405 4,982 6,947 6,166 6,663 9,002 8,399 7,000 8,145 8,420 4,724 7,747 7,045 6,160 7,752 4,319 7,092 8,947 5,366 61,057 5,160 6,974 7,904 7,817 25,777 4,389 3,652 2,424 7,905

Fair % of Net Value ($) Assets

8,462 6,843 5,296 4,726 4,877 66,375 7,758 110,160 10,032 86,618 20,965 5,525 10,605 6,263 17,864 13,462 9,850 17,301 16,763 17,917 4,794 12,668 15,911 9,128 11,248 4,816 66,256 5,861 6,895 6,113 6,250 11,451 9,323 8,598 8,755 8,240 4,998 8,355 7,000 6,317 7,756 3,597 10,194 8,705 5,222 57,757 5,473 9,099 10,557 7,903 28,620 4,654 4,400 2,821 6,645

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio Number of Shares Security

410 2,308 200 100 400 437 100 311 73 200 400 500 348 193 375 218 137 610 106 55 548 300 431 600 156 2,391 694 181 175 270 415 884 449 93 400 200 224 1,697 400 434 366 237 1,068 344 202 112 206 542 93 154 104 264 1,135 278 416

Average Cost ($)

Spectra Energy Corporation 11,595 Sprint Nextel Corporation 5,461 St. Jude Medical, Inc. 7,378 Stanley Black & Decker Inc. 6,451 Staples, Inc. 6,034 Starbucks Corporation 20,105 Starwood Hotels & Resorts Worldwide, Inc. 4,945 State Street Corporation 13,159 Stericycle, Inc. 6,280 Stryker Corporation 9,600 SunTrust Banks, Inc. 7,326 Symantec Corporation 8,212 Sysco Corp. 10,583 T. Rowe Price Group Inc. 11,379 Target Corporation 22,110 Teco Energy Inc. 4,182 Teradata Corporation 8,541 Texas Instruments Incorporated 17,204 Textron Inc. 2,951 The ADT Corporation 1,945 The AES Corporation 7,033 The Allstate Corporation 7,908 The Boeing Company 31,222 The Charles Schwab Corporation 7,216 The Chubb Corporation 12,250 The Coca-Cola Company 84,261 The Dow Chemical Company 20,585 The Estee Lauder Companies Inc. Cl. A 10,454 The Gap, Inc. 4,321 The Goldman Sachs Group, Inc. 29,525 The Hartford Financial Services Group 7,047 The Home Depot, Inc. 42,939 The Interpublic Group of Companies, Inc. 5,232 The J.M. Smucker Company 7,415 The Kroger Co. 9,182 The McGraw-Hill Companies, Inc. 8,914 The Mosaic Company 12,608 The Procter & Gamble Company 111,672 The Progressive Corp. 7,546 The Southern Co. 19,388 The TJX Companies Inc. 12,665 The Travelers Companies, Inc. 15,292 The Walt Disney Company 42,833 The Williams Companies, Inc. 10,986 Thermo Electron Corp. 11,259 Tiffany & Co. 7,255 Time Warner Cable Inc. 13,536 Time Warner Inc. 21,096 Torchmark Corporation 4,109 Total System Services, Inc. 3,773 TripAdvisor Inc. 4,820 Tyson Foods, Inc. Cl. A 5,067 U.S. Bancorp 32,927 Union Pacific Corporation 30,487 United Parcel Service, Inc. Cl. B 31,178

ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

11,162 12,994 7,192 7,358 4,532 23,316 5,705 14,543 6,770 10,904 11,276 9,360 10,959 12,502 22,067 3,634 8,430 18,779 2,612 2,545 5,833 11,987 32,321 8,570 11,688 86,262 22,318 10,777 5,400 34,275 9,263 54,386 4,926 7,978 10,353 10,876 12,618 114,632 8,395 18,477 15,454 16,931 52,883 11,199 12,819 6,389 19,921 25,786 4,777 3,280 4,336 5,094 36,060 34,765 30,513

Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

511 United Technologies Corporation 39,968 41,685 620 UnitedHealth Group Incorporated 31,711 33,451 246 UnumProvident Corporation 5,746 5,092 64 V.F. Corp. 9,288 9,611 300 Valero Energy Corporation 6,373 10,176 100 Varian Medical Systems, Inc. 6,645 6,985 200 Ventas, Inc. 10,553 12,871 143 VeriSign, Inc. 5,200 5,522 1,689 Verizon Communications Inc. 65,503 72,679 288 Viacom Inc. Cl. B 13,999 15,111 295 Visa, Inc., Cl. A 34,394 44,447 145 Vornado Realty Trust 11,416 11,549 117 Vulcan Materials Co. 5,070 6,055 41 W.W. Grainger Inc. 8,270 8,252 493 Walgreen Co. 16,645 18,159 997 Wal-Mart Stores, Inc. 61,285 67,695 350 Waste Management, Inc. 11,415 11,743 82 Waters Corporation 7,298 7,106 85 Watson Pharmaceuticals, Inc. 7,374 7,270 119 WellPoint Inc. 7,920 7,212 3,031 Wells Fargo & Company 88,174 103,141 200 Western Digital Corporation 6,556 8,453 400 Western Union Company 6,773 5,415 422 Weyerhaeuser Company 8,970 11,682 71 Whirlpool Corporation 5,212 7,189 98 Whole Foods Market, Inc. 6,894 8,902 487 Windstream Corporation 5,950 4,021 65 Wisconsin Energy Corporation 2,208 2,382 100 WPX Energy Inc. 1,691 1,480 129 Wyndham Worldwide Corporation 5,694 6,826 59 Wynn Resorts, Ltd. 6,792 6,596 300 Xcel Energy Incorporated 7,993 7,965 1,200 Xerox Corporation 9,692 8,141 218 Xilinx, Inc. 7,210 7,783 189 Xylem, Inc. 4,946 5,091 639 Yahoo! Inc. 10,907 12,642 263 Yum! Brands, Inc. 17,581 17,376 152 Zimmer Holdings, Inc. 9,035 10,074 7,641,582 8,148,309 24.3 Total investments 31,388,804 33,175,595 98.8 Other assets less liabilities 387,094 1.2 Net assets 33,562,689 100.0

19

ING DIRECT Streetwise Equity Growth Portfolio (formerly ING DIRECT Streetwise Equity Growth Fund) NOTES TO THE FINANCIAL STATEMENTS PERIODS ENDED DECEMBER 31, 2012 AND 2011 1. ORGANIZATION OF THE FUND ING Direct Streetwise Equity Growth Portfolio (the “Fund”) is an open-ended mutual fund trust established on November 18, 2011 under the laws of Ontario. The Fund is governed by a Master Declaration of Trust dated November 19, 2008 and amended most recently on November 14, 2012 to change the name of the Fund from ING DIRECT Streetwise Equity Growth Fund to ING DIRECT Streetwise Equity Growth Portfolio. ING Direct Asset Management Limited (the “Manager”) provides management services to the Fund. The principal distributor of the Fund is ING Direct Funds Limited. Both companies are wholly owned subsidiaries of ING Bank of Canada. On November 15, 2012, The Bank of Nova Scotia acquired all the issued and outstanding shares of ING Bank of Canada (“share purchase transaction”). The share purchase transaction resulted in a change of control of ING Bank of Canada, ING Direct Asset Management Limited and ING Direct Funds Limited. The operations of the Fund, ING Direct Asset Management Limited and ING Direct Funds Limited remain unchanged by the share purchase transaction.

(c)

(d)

(e)

2. SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”). The following is a summary of significant accounting policies used in preparing these financial statements: (a) Accounting estimates The preparation of financial statements in accordance with Canadian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

(f)

(b) Basis of determining fair value Investments are categorized as held for trading in accordance with the Canadian Institute of Chartered Accountants Handbook Section 3855, “Financial Instruments – Recognition and Measurement”. Each investment security, other than short-term notes, is valued at fair value, which is determined by the closing bid price for securities purchased long and the closing ask price for securities sold short, as reported by the principal securities exchange on which the security is traded or the closing net asset value of the respective mutual fund. Short-term notes are valued at amortized cost which approximates fair value at bid prices. 20

(g)

Portfolio investments for which reliable quotations are not readily available are valued at management’s best estimate of fair value determined by using valuation techniques including models. The cost of investments for each security is  determined on an average cost basis. Investment transactions and income Investment transactions are accounted for on a trade date basis. Dividend income, including stock dividends, is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Realized gains and losses on investment transactions and unrealized appreciation or depreciation of investments are both computed on an average cost basis. Valuation of fund units Net asset value per unit (“NAVPU”) is computed by dividing the net asset value of the Fund by the total number of outstanding units of the Fund. The NAVPU is calculated as of the close of each day that the Toronto Stock Exchange is open for trading. Translation of foreign currencies The Fund’s functional currency is Canadian dollars. Foreign currency denominated monetary assets and liabilities are translated into Canadian dollars at the rate of exchange prevailing at the period-end date. Purchases and sales of investments, investment income and expenses denominated in foreign currency are translated into Canadian dollars at the rate of exchange prevailing on the respective dates of such transactions. The value of forward currency contracts entered into by the Fund is recorded as the difference between the value of the contract on the valuation date and the value on the date the contract was originated. Realized exchange gains (losses) on investments are included in “Net realized gain on investments” in the Statement of Operations. Realized exchange gains (losses) on assets, liabilities and investment income denominated in foreign currencies are included in the Statement of Operations in the line “Net realized loss on foreign exchange”. Cost of investments The cost of investments represents the amount paid for each security, not including transaction costs, and is determined on an average cost basis. Transaction costs Transaction costs incurred in the purchase and sale of securities are expensed as part of the increase in net assets from operations and are included as “Transaction costs” in the Statement of Operations. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of an investment. These costs include fees and commissions paid to agents, advisors, brokers and dealers; levies by regulatory agencies and securities exchanges; transfer taxes and duties. ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio (h) Securities lending The Fund qualifies to lend portfolio securities from time to time in order to earn additional income. The Fund receives collateral in the form of cash or qualified non-cash instruments having a market value equal to at least 102% of the market value of the securities loaned during the period. The Fund has the right to sell the non-cash collateral if the borrower defaults on its obligations under the transaction. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the following business day. Cash collateral is invested in cash equivalents. The loaned securities continue to be included in “Investments” on the Statement of Net Assets. (i) Derivative transactions The Fund is permitted by Canada’s securities law to use derivative instruments to achieve its investment objectives as set out in the Fund’s Simplified Prospectus. Derivative instruments are valued daily using normal exchange reporting sources for exchange-traded derivatives and specific broker enquiry for over-the-counter derivatives. 3. NET ASSET VALUE PER UNIT AND NET ASSETS PER UNIT The application of Canadian GAAP for financial reporting purposes results in the Fund’s valuations being different for daily unit transactions and financial reporting because of the valuation methodologies used in determining fair values. For financial reporting purposes, the Fund must comply with Canadian GAAP which, for securities traded in an active market, requires the use of bid prices for valuing long positions and ask prices for valuing securities sold short (“Net Assets”). For daily unit transactions, the Fund complies with NI 81-106 (“Investment Fund Continuous Disclosure”) and uses the close or last trade price for securities valuation (“Net Asset Value”). The Fund’s Net Asset Value per unit and Net Assets per unit amounted to $11.04 (December 31, 2011: $10.18) and $11.03 (December 31, 2011: $10.16), respectively. 4. FINANCIAL INSTRUMENT RISK The Fund’s activities expose it to a variety of financial risks. The Manager seeks to minimize potential adverse effects of these risks on the Fund’s performance by employing professional, experienced portfolio advisors; by daily monitoring of the Fund’s position and market events; by diversifying the investment portfolio within the constraints of the investment objectives; and by periodically using derivatives to hedge certain risk exposures. (a) Currency risk Currency risk arises from financial instruments that are denominated in a currency other than the Canadian dollar. ING DIRECT Annual Financial Statements December 31, 2012

The Fund is exposed to the risk that the Canadian dollar value of investments and cash denominated in other currencies will fluctuate due to changes in exchange rates. When the value of the Canadian dollar falls in relation to foreign currencies, then the Canadian dollar value of foreign investment and cash rises. When the value of the Canadian dollar rises, the Canadian dollar value of foreign investment and cash falls. Other financial assets and liabilities that are denominated in foreign currencies do not expose the Fund to significant currency risk. The tables below indicate, in Canadian dollar terms, the foreign currencies to which the Fund had significant exposure as at December 31, 2012 and December 31, 2011, including the underlying principal amount of forward currency contracts, if any. The tables also illustrate the potential impact to the Fund’s net assets, all other variables held constant, as a result of a 1% change in these currencies relative to the Canadian dollar. In practice, actual trading results may differ from this sensitivity analysis and the difference could be material. December 31, 2012 Currency Australian Dollar British Pound Danish Krone Euro Hong Kong Dollar Israeli Shekel Japanese Yen New Zealand Dollar Norwegian Krone Singapore Dollar Swedish Krona Swiss Franc U.S. Dollar Total

Cash and Investments ($) 742,431 1,840,152 101,262 2,373,256 249,918 48,478 1,625,360 7,786 70,081 148,983 270,800 712,651 8,321,211 16,512,369

As % of Net assets 2.21% 5.49% 0.30% 7.07% 0.75% 0.14% 4.85% 0.02% 0.21% 0.44% 0.81% 2.12% 24.79% 49.20%

Impact on Net assets ($) 7,424 18,402 1,013 23,732 2,499 485 16,254 78 701 1,490 2,708 7,126 83,212 165,124

December 31, 2011 Currency Australian Dollar British Pound Danish Krone Euro Hong Kong Dollar Israeli Shekel Japanese Yen Norwegian Krone Singapore Dollar Swedish Krona Swiss Franc U.S. Dollar Total

Cash and Investments ($) 400,556 1,066,143 48,141 1,230,038 116,892 29,467 984,066 51,225 74,402 143,340 380,826 5,028,234 9,553,330

As % of Net assets 2.03% 5.40% 0.24% 6.24% 0.59% 0.15% 4.99% 0.26% 0.38% 0.73% 1.93% 25.49% 48.43%

Impact on Net assets ($) 4,006 10,662 481 12,300 1,169 295 9,841 512 744 1,433 3,808 50,282 95,533

21

ING DIRECT Streetwise Equity Growth Portfolio (b) Interest rate risk Interest rate risk arises on interest-bearing financial instruments held in the investment portfolio. As the Fund is primarily invested in equity instruments which are non-interest bearing, the Fund does not have significant exposure to interest rate risk. (c) Other market risk Other market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer, or other factors affecting all instruments traded in a market or market segment. All securities present a risk of loss of capital. The Fund’s investment portfolio is susceptible to market price risk arising from uncertainties about future prices of the instruments. The following table indicates the change in net assets had the value of the Fund’s benchmarks increased or decreased by 1%, as at December 31, 2012 and December 31, 2011. This change is estimated based on the historical correlation between the return of the Fund and the return of the Fund’s benchmarks. The historical correlation may not be representative of future correlation, and accordingly the impact on Net Assets could be materially different.

Benchmark S&P/TSX 60 Index S&P 500 Index Morgan Stanley Capital   International EAFE

December 31, 2012 December 31, 2011 Impact on Impact on net assets ($) net assets ($) 164,839 95,022 79,062 48,175 84,025 327,926

47,181 190,378

As at December 31, 2012, 98.85% (December 31, 2011, 96.51%) of the Fund’s Net Assets traded on global stock exchanges. (d) Credit risk Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. As the Fund is primarily invested in equity instruments, its exposure to credit risk mainly arises from participation in securities lending transactions. Under the securities lending program, the Fund holds collateral of at least 102% of the value of the loaned securities. The collateral holdings are adjusted daily to reflect changes in fair value for both the loaned securities and the securities held as collateral. Accordingly, the Fund has no significant exposure to credit risk. All transactions executed by the Fund in listed securities are settled or paid for upon delivery using approved brokers. The 22

risk of default is considered minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation. (e) Liquidity risk The Fund is exposed to daily cash redemptions of redeemable units. Therefore, in accordance with securities legislation, the Fund maintains at least 90% of its assets in investments that are traded in an active market and can be readily disposed. In addition, the Fund retains sufficient cash and cash equivalent positions to maintain liquidity. 5. FAIR VALUE MEASUREMENT The following tables categorize each investment of the Fund into one of the three fair value hierarchy levels: Level 1 – Fair values are based on unadjusted quoted prices from an active market for identical assets. Level 2 – Fair values are based on inputs other than quoted prices that are directly or indirectly observable in an active market. Level 3 – Fair values are based on inputs not observable in the market. December 31, 2012 Equities

Level 1 ($) 33,175,595

Level 2 ($) –

Level 3 ($) –

Total ($) 33,175,595

December 31, 2011 Equities

Level 1 ($) 19,037,841

Level 2 ($) –

Level 3 ($) –

Total ($) 19,037,841

During the periods ended December 31, 2012 and December 31, 2011, no investments were transferred among Level 1 and Level 2. Furthermore, no Level 3 investments were held by the Fund during these periods. 6. INCOME TAX The Fund qualifies as a mutual fund trust under the Income Tax Act (Canada) (the “Tax Act”) and, accordingly, is not subject to income tax on the portion of its net income, including net realized capital gains, which is paid or payable to unitholders. Such distributed income is taxable in the hands of the unitholders. The taxation year end for the Fund is December 15, 2012. Temporary differences between the carrying value of assets and liabilities for accounting and income tax purposes give rise to future income tax assets and liabilities. The most significant temporary difference is between the reported fair value of the Fund’s investment portfolio and its adjusted cost base for income tax purposes. Since the Fund’s distribution policy is to distribute all net realized capital ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Equity Growth Portfolio gains, future tax liabilities with respect to unrealized capital gains and future tax assets with respect to unrealized capital losses are not realized by the Fund and are therefore not recorded by the Fund. As at December 31, 2012 and December 31, 2011, the Fund did not have a net capital loss or a non-capital loss that could be used to offset future taxable income. 7. UNITHOLDERS’ EQUITY The Fund is authorized to issue an unlimited number of transferable, redeemable trust units of one class, which represent an equal, undivided interest in the net assets of the Fund.

Number of units issued Balance – beginning of the period Issued Reinvested Redeemed Balance – end of the period

December 31, 2012

December 31, 2011

1,940,732 2,921,441 40,638 (1,858,894) 3,043,917

– 1,940,840 1,635 (1,743) 1,940,732

Unitholders’ equity is considered to be a source of capital for the Fund. The Fund’s objectives are managing capital to safeguard the Fund’s ability to continue as a going concern; to provide financial capacity and flexibility to meet its strategic objectives; and to provide an adequate return to unitholders commensurate with the level of risk while maximizing the distributions to unitholders. The Fund makes distributions only to the extent that revenue exceeded expenses during the period. Since both the revenue and expenses of the Fund are reasonably predictable and stable and since the Fund does not have any externally imposed capital requirements, the Manager believes that current levels of distributions, capital and capital structure are sufficient to sustain ongoing operations. The Manager actively monitors the cash position and financial performance of the Fund to ensure resources are available to meet current distribution levels. 8. SECURITIES LENDING The aggregated dollar values of loaned securities and the corresponding collateral are as follows:

Market Value of Securities Loaned ($) Market Value of Collateral Received ($)

December 31, 2012 2,522,375 2,595,839

December 31, 2011 – –

9. SOFT DOLLAR COMMISSIONS Brokerage business is allocated to brokers based on an assessment as to which broker can deliver the best results to

ING DIRECT Annual Financial Statements December 31, 2012

the Fund. Business may be allocated to brokers that provide, in addition to transaction execution, investment research services which may or may not be used by the Manager during its investment decision-making process. No portion of the broker commissions were related to soft dollar costs during the period ended December 31, 2012 (December 31, 2011: nil). 10. RELATED PARTY TRANSACTIONS The Manager charges fees in connection with management services at a rate of 0.80% per year of the Fund’s daily net asset value. The Fund also pays a fixed administration fee to the Manager equal to 0.15% per year of the Fund’s daily net asset value to cover regulatory filing fees and other day-to-day operating expenses including, but not limited to, recordkeeping, accounting and fund valuation costs, custodial fees, audit and legal fees, the costs of preparing and distributing annual and semi-annual reports, prospectuses, financial statements and investor communications. Finally, certain operating expenses are paid directly by the Fund, including the costs and expenses related to the Independent Review Committee; the cost of any government or regulatory requirements introduced after July 1, 2007; borrowing costs and taxes (including, but not limited to, GST and HST). The Manager, at its sole discretion, may absorb a portion of the Fund’s expenses and these are reflected in the Statement of Operations as rebated and absorbed expenses. During 2012, ING Bank of Canada withdrew the money it had invested to launch the fund. The redemptions took place in March and July of 2012 at a Net Asset Value of $10.70 and 10.32, respectively. ING Bank of Canada held 1.5 million units of the fund at December 31, 2011. 11. ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS Investment companies that are publicly accountable enterprises or investment funds to which National Instrument 81-106 Investment Fund Continuous Disclosure is applicable, are required to adopt International Financial Reporting Standards (“IFRS”) for the first time for interim and annual financial statements relating to annual periods beginning on or after January 1, 2014. As a result, the Fund will adopt IFRS beginning January 1, 2014 and publish its first financial statements, prepared in accordance with IFRS, for the semi-annual period ending June 30, 2014. The 2014 semi-annual and annual financial statements will include 2013 comparative financial information and an opening Statement of Net Assets as at January 1, 2013, also prepared in accordance with IFRS.

23

ING DIRECT Streetwise Equity Growth Portfolio The Manager has developed a transition plan to changeover to IFRS that meets the required timetable. As at December 31, 2012, the expected impact to the financial statements based on the Manager’s assessment of the differences between Canadian GAAP and IFRS is as follows: • IFRS 13, Fair Value Measurement permits the use of mid-market prices or other pricing conventions that are used by market participants as a practical expedient for fair value measurements within a bid-ask spread. As a result, Net Assets may be impacted and could align with Net Asset Value, eliminating the need for a reconciliation. • U  nits of the Fund are puttable instruments and are required to be presented as equity or liability depending on certain criteria. As a result, unitholders’ equity may be required to be presented as a liability in the Statements of Net Assets with related distributions presented as an expense in the Statements of Operations. Alternatively, equity presentation would require additional disclosure of the components of equity. • IFRS requires the presentation of a Statement of Cash Flows, including comparatives for 2013. The Fund has not previously presented this statement as permitted by Canadian GAAP. Given the Fund is an index fund and the entities in which it invests are widely held, the Manager does not expect IFRS 10, Consolidated Financial Statements, to have a significant impact on the Fund. In addition, reclassifications, presentation changes and additional disclosures may also be required in the financial statements to comply with the new requirements under IFRS.

24

ING DIRECT Annual Financial Statements December 31, 2012

ING Bank of Canada and its subsidiaries have been acquired by The Bank of Nova Scotia and are no longer affiliated with ING Groep N.V. The trademarks ING, ING DIRECT, ING Lion, the ING Lion logo and any derivation, variation, translation or adaptation thereof are trademarks of ING Groep N.V. and are used under license. ™ Trademark of ING Bank of Canada.