Audited Annual Financial Statements. For the period ended December 31, ING DIRECT Streetwise Balanced Income Portfolio

Audited Annual Financial Statements For the period ended December 31, 2012 ING DIRECT Streetwise Balanced Income Portfolio Contents ING DIRECT Stree...
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Audited Annual Financial Statements For the period ended December 31, 2012 ING DIRECT Streetwise Balanced Income Portfolio

Contents ING DIRECT Streetwise Balanced Income Portfolio Annual Financial Statements Notes to the Financial Statements

8 32

ING DIRECT Streetwise Balanced Income 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

7

ING DIRECT Streetwise Balanced Income Portfolio ING DIRECT Streetwise Balanced Income Portfolio (formerly ING DIRECT Streetwise Balanced Income Fund) Statement of Net Assets

ING DIRECT Streetwise Balanced Income Portfolio (formerly ING DIRECT Streetwise Balanced Income Fund) Statement of Operations

Liabilities Payable on open spot and forward contracts 115 129 Payable for securities purchased 291,040 1,265,497 Redemptions payable 575,388 269,778 Accrued expenses 172,114 115,117 1,038,657 1,650,521 Net assets representing unitholders’ equity $ 191,583,952 $ 129,764,123 Number of units outstanding (Note 7) 17,464,941 12,155,790 Net assets per unit (Note 3) $ 10.97 $ 10.68

Expenses Management fees (Note 10) 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

As at December 31, 2012 2011 Assets Investments at fair value (Notes 2b and 5) $ 190,462,072 $ 128,000,005 Cash and cash equivalent 507,088 1,270,677 Subscriptions receivable 772,255 987,916 Receivable for securities sold 363 520,794 Accrued investment income 880,831 635,252 192,622,609 131,414,644

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

Rob Landry, Director

Peter Aceto, Director

For the years ended December 31 2012 2011 Investment Income Dividends $ 1,457,395 $ 841,822 Interest 4,212,629 2,620,044 Securities lending income 5,274 2,835 Less: Foreign withholding taxes (100,326) (63,987) 5,574,972 3,400,714

1,341,282 251,497

808,715 151,643

201,192 14,144 1,808,115 (14,144) 1,793,971 3,781,001

121,307 14,069 1,095,734 (14,069) 1,081,665 2,319,049

Net Realized and Unrealized Gain (Loss) on Investments Net realized gain on investments 865,203 437,885 Net realized loss on foreign exchange (4,057) (8,581) Net realized gain from trust units / underlying funds – 127 Net unrealized appreciation on investments arising during the year 3,264,451 1,639,600 Net unrealized appreciation (depreciation) on foreign exchange arising during the year 1,180 (421) Transaction costs (Note 2g) (22,208) (25,921) Net gain on investments 4,104,569 2,042,689 Increase in Net Assets from Operations $ 7,885,570 $ 4,361,738 Increase in net assets from operations per unit $ 0.51 $ 0.46

ING DIRECT Streetwise Balanced Income Portfolio (formerly ING DIRECT Streetwise Balanced Income Fund) Statement of Changes in Net Assets For the years ended December 31

2012 Net Assets, Beginning of Year $ 129,764,123 $ Increase in net assets from operations 7,885,570 Distributions to unitholders from Net investment income (3,713,358) Capital gains (251,570) (3,964,928)

2011 66,730,373 4,361,738 (2,226,496) – (2,226,496)

Capital Transactions Proceeds from issue 80,500,969 82,822,254 Reinvested distributions 3,963,284 2,225,774 Payments on redemption (26,565,066) (24,149,520) 57,899,187 60,898,508 Increase in net assets 61,819,829 63,033,750 Net Assets, End of Year $ 191,583,952 $ 129,764,123

8

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio ING DIRECT Streetwise Balanced Income Portfolio (formerly ING DIRECT Streetwise Balanced Income Fund) Statement of Investments As at December 31, 2012 Number of Shares Security



Average Cost ($)

Fair % of Net Value ($) Assets

EQUITY (30.0%)

Australia 1,271 AGL Energy Limited 849 ALS Limited 701 Alumina Limited 2,492 Amcor Limited 5,659 AMP Limited 1,394 APA Group 555 Asciano Group 476 ASX Ltd. 2,725 Aurizon Holdings Ltd 4,897 Australia and New Zealand Banking Group Limited 1,238 Bendigo Bank Limited NPV 5,717 BHP Billiton Limited 2,760 Brambles Limited 5,161 CFS Retail Property Trust 1,021 Coca-Cola Amatil Limited 121 Cochlear Ltd. 2,754 Commonwealth Bank of Australia 1,393 Computershare Ltd. 384 Crown Ltd. 878 CSL Limited 8,779 Dexus Property Group 224 Echo Entertainment Group Ltd. 1,736 Fortescue Metals Group Limited 4,570 General Property Trust 2,764 Goodman Group 569 Iluka Resources Ltd. 2,489 Incitec Pivot Limited 4,241 Insurance Australia Group Limited 100 Leighton Holdings Limited 1,351 Lend Lease Corp. 761 Macquarie Group Limited 1,453 Metcash Limited 7,926 Mirvac Group 4,037 National Australia Bank Limited 1,186 Newcrest Mining Limited 771 Orica Limited 1,507 Origin Energy Limited 615 OZ Minerals Ltd. 1,843 QBE Insurance Group Limited 420 Ramsay Health Care Limited 823 Rio Tinto Limited 2,131 Santos Limited 1,142 Sonic Healthcare Limited 4,371 Stockland 2,049 Suncorp Group Ltd. 207 Tab Corporation Holdings Limited 3,600 Tatts Group Ltd. 7,897 Telstra Corporation Limited 1,565 Toll Holdings Ltd. 3,700 Transurban Group 1,838 Wesfarmers Limited

17,710 10,660 609 16,924 25,316 7,014 2,690 15,705 8,135

20,166 9,427 652 20,773 28,117 7,934 2,672 15,340 10,499

106,995 10,831 218,209 18,100 9,019 11,020 7,760 133,583 11,360 1,941 29,105 8,285 980 9,920 14,577 10,815 9,445 10,528 13,402 3,401 10,611 24,741 5,534 10,680 96,217 43,114 18,677 23,369 9,879 30,346 10,297 59,674 30,090 14,666 15,365 16,089 1,162 10,531 26,743 9,556 20,873 58,343

126,509 10,870 219,089 21,410 10,209 14,185 9,880 176,885 12,878 4,220 48,838 9,159 791 8,302 17,324 12,334 5,301 8,279 20,546 1,845 12,908 27,858 4,983 12,117 104,208 27,172 19,958 18,088 4,256 20,751 11,783 56,116 24,433 15,724 15,938 21,525 650 11,193 35,647 7,372 23,275 69,962

ING DIRECT Annual Financial Statements December 31, 2012

Number of Shares Security

3,773 Westfield Group 7,665 Westfield Retail Trust 5,713 Westpac Banking Corporation 1,074 Woodside Petroleum Limited 2,261 Woolworths Limited 375 WorleyParsons Ltd.

Average Cost ($)

37,214 18,513 121,984 42,192 60,330 11,326 1,582,155

Austria 158 Andritz AG 215 Erste Group Bank AG 3,300 Immofinanz Immobilien Anlagen AG 530 OMV AG 138 Telekom Austria AG 66 Voestalpine AG Belgium 688 Ageas 1,534 Anheuser-Busch InBev NV 443 Belgacom SA 243 Delhaize Group 163 Groupe Bruxelles Lambert SA 369 KBC Bank NV 140 Solvay SA 213 UCB SA 127 Umicore Bermuda 760 Invesco Limited 1,500 Kerry Properties Limited 524 Nabors Industries, Ltd. 7,104 Noble Group Limited 527 SeaDrill Ltd. Canada 2,969 Agnico-Eagle Mines Limited 2,574 Agrium Inc. 5,150 ARC Resources Ltd. 11,124 Bank of Montreal 17,197 Barrick Gold Corporation 13,312 BCE Inc. 25,371 Bombardier Inc. Cl. B 9,675 Brookfield Asset Management Inc. Cl. A Limited Voting 6,668 Cameco Corporation 6,952 Canadian Imperial Bank of Commerce 7,371 Canadian National Railway Company 18,814 Canadian Natural Resources Ltd. 7,799 Canadian Oil Sands Ltd. 2,565 Canadian Pacific Railway Limited 1,417 Canadian Tire Corporation, Limited Cl. A 13,001 Cenovus Energy Inc. 6,409 Crescent Point Energy Corp. 12,344 Eldorado Gold Corporation 13,747 Enbridge Inc.

8,625 9,007

Fair % of Net Value ($) Assets

41,117 23,911 153,609 37,586 68,477 9,049 1,734,100

0.9

10,079 6,778

14,120 17,539 2,457 1,712 53,460

13,739 19,035 1,036 2,394 53,061

0.0

13,758 86,683 17,116 13,927 13,811 9,451 14,190 9,899 6,850 185,685

20,040 124,563 12,883 9,650 12,838 12,613 20,100 12,087 6,952 231,726

0.1

18,535 7,627 10,776 11,719 16,438 65,095

19,716 7,739 7,532 6,681 19,175 60,843

0.0

169,388 196,868 118,120 633,097 781,742 481,760 118,978

154,447 255,186 124,991 676,450 596,908 567,091 95,141

286,356 176,074 510,594 513,061 671,975 189,297 164,945

351,203 130,359 555,882 665,528 538,645 157,150 258,475

85,675 419,533 286,347 186,443 432,853

98,184 432,803 240,338 157,633 591,121

9

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

12,695 EnCana Corporation 324,953 248,822 3,508 Enerplus Corp. 84,769 44,902 8,077 First Quantum Minerals Ltd. 151,685 176,563 3,264 Fortis, Inc. 102,480 111,400 780 George Weston Limited 52,777 55,037 1,937 Gildan Activewear Inc. Cl. A, Sub. Voting 52,507 70,236 13,947 Goldcorp, Inc. 611,830 507,392 5,100 Husky Energy Inc. 134,219 149,889 6,403 IAMGOLD Corporation 108,793 72,738 4,312 Imperial Oil Ltd. 183,482 184,252 1,400 iShares S&P/TSX 60 Index Fund 24,920 25,088 19,237 Kinross Gold Corp. 289,657 184,675 1,710 Loblaw Companies Limited 63,424 71,581 4,028 Magna International Inc. Cl. A Sub. Voting 165,084 199,668 31,333 Manulife Financial Corporation 462,847 422,369 1,689 Metro Inc. Cl. A Sub-Voting 79,579 106,795 2,775 National Bank of Canada 187,546 213,953 9,140 Nexen Inc. 193,280 242,850 8,125 Penn West Petroleum Ltd. 160,092 87,506 14,805 Potash Corporation of Saskatchewan Inc. 666,054 597,826 5,978 Power Corporation of Canada 151,472 151,184 7,031 Research In Motion Limited 298,252 82,825 6,304 Rogers Communications, Inc. Cl. B 228,803 284,563 24,745 Royal Bank of Canada 1,286,754 1,479,998 2,190 Saputo Inc. 82,043 109,938 6,372 Shaw Communications, Inc. Cl. B Non-Voting 131,543 145,345 3,558 Shoppers Drug Mart Corporation 143,784 151,962 6,113 Silver Wheaton Corp. 225,284 218,723 2,624 SNC-Lavalin Group Inc. 125,970 105,668 10,286 Sun Life Financial Inc. 267,892 270,933 26,297 Suncor Energy, Inc. 876,238 859,912 17,447 Talisman Energy Inc. 275,796 195,755 8,279 Teck Resources Ltd. Cl. B Sub-Voting 315,698 298,458 5,608 TELUS Corporation 279,597 364,744 19,822 The Bank of Nova Scotia 1,023,860 1,138,179 15,718 The Toronto-Dominion Bank 1,162,614 1,314,811 6,425 Thomson Reuters Corporation 210,897 184,847 2,616 Tim Hortons, Inc. 112,150 127,635 4,463 TransAlta Corporation 88,506 67,347 12,117 TransCanada Corporation 480,081 569,136 4,914 Valeant Pharmaceuticals International, Inc. 188,777 291,105 12,967 Yamana Gold Inc. 175,130 220,958 18,654,225 19,055,103 Cayman Islands 4,000 Sands China Ltd. 2,400 Wynn Macau Limited

10,289 7,495 17,784

17,402 6,422 23,824

Denmark 2 A.P. Moller - Maersk A/S 1 A.P. Moller - Maersk A/S Series A 244 Carlsberg Brewery A/S 240 Coloplast A/S Cl. B 861 Danske Bank A/S

17,261 7,535 20,342 8,526 17,661

14,994 7,046 23,767 11,678 14,485

10

10.0

0.0

Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

400 DSV A/S 731 Novo Nordisk A/S Cl. B 250 Novozymes A/S Series B 1,300 TDC A/S

8,398 79,927 6,880 10,834 177,364

10,249 117,772 7,004 9,156 216,151

0.1

Finland 50 Elisa Corporation Cl. A 1,067 Fortum OYJ 274 Kesko OYJ Series B 424 Kone OYJ Cl. B 100 Metso Corporation 114 Nestle Oil OYJ 5,939 Nokia OYJ 260 Nokian Renkaat OYJ 383 Orion OYJ Cl. B 900 Sampo OYJ Series A 200 Stora Enso OYJ 749 UPM-Kymmene Corporation 200 Wartsila Corporation Cl. B

907 24,586 9,335 22,299 1,447 2,024 54,349 9,530 7,624 23,825 1,615 14,135 7,302 178,978

1,096 19,809 8,889 31,064 4,205 1,462 22,816 10,258 11,149 28,750 1,376 8,654 8,568 158,096

0.1

14,510 65,606 13,921 9,236 8,030 48,931 97,080 21,141 9,754 13,543 33,921 12,701 13,035

13,891 70,972 9,527 9,152 9,966 48,411 97,037 13,011 13,181 13,502 23,254 14,196 19,189

23,343 28,019

35,154 27,847

10,492 23,759 15,619 11,492 10,759 23,933 12,035 74,488 79,072 62,608 8,669 7,054 7,456 17,900 1,584 12,758 49,029 68,150 8,813 31,973

10,707 16,402 22,007 12,913 4,342 34,226 10,471 45,771 51,646 63,084 6,683 9,011 9,135 27,377 1,057 13,081 57,929 83,435 5,697 40,167

France 397 Accor SA 569 Air Liquide SA 241 Alstom 88 Arkema 144 Atos Origin SA 2,764 AXA SA 1,739 BNP Paribas 444 Bouygues SA 119 Bureau Veritas SA 313 CAP Gemini SA 916 Carrefour SA 150 Casino Guichard-Perrachon 114 Christian Dior SA 374 Cie Generale des Etablissements Michelin 660 Compagnie de Saint-Gobain SA 361 Compagnie Generale de Geophysique-Veritas 2,054 Credit Agricole SA 199 Dassault Systemes SA 423 Edenred 237 Electricite de France 343 Essilor International SA 318 Eutelsat Communications 4,190 France Telecom SA 2,528 GDF Suez 965 Groupe Danone 872 Groupe Eurotunnel SA 53 Ilias SA 233 Klepierre SA 433 Lafarge SA 32 Lagardere SCA 313 Legrand SA 421 L’Oréal SA 458 LVMH Moet Hennessy Louis Vuitton SA 1,705 Natixis 351 Pernod-Ricard SA

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

67 Peugeot SA 142 Pinault-Printemps-Redoute SA 288 Publicis Groupe SA 370 Renault SA 413 Safran SA 2,115 Sanofi 959 Schneider Electric SA 98 SCOR SE 62 Societe BIC SA 1,369 Societe Generale 165 Sodexho Alliance SA 780 Suez Environnement SA 183 Technip SA 44 Thales SA 3,810 Total SA 172 Unibail 175 Vallourec SA 362 Veolia Environnement 892 Vinci SA 2,132 Vivendi Universal SA 61 Zodiac SA

Average Cost ($)

1,475 20,162 13,062 19,529 14,679 149,477 58,434 2,192 7,684 53,920 12,020 11,437 15,162 2,278 206,959 31,768 15,408 9,835 43,603 49,553 6,139 1,695,190

Germany 401 Adidas-Salomon AG 23,851 823 Allianz AG 97,872 1,631 BASF SE 118,028 1,438 Bayer AG 100,877 609 Bayerische Motoren Werke (BMW) AG 47,322 194 Bayerische Motoren Werke (BMW) AG, Non-Voting Preferred 11,618 203 Beiersdorf AG 14,060 109 Brenntag AG 12,791 8,515 Commerzbank AG 31,003 213 Continental AG 22,321 1,638 Daimler AG 92,714 1,700 Deutsche Bank AG 86,568 331 Deutsche Boerse AG 23,386 823 Deutsche Lufthansa AG 11,613 1,700 Deutsche Post AG 32,986 5,117 Deutsche Telekom AG 67,214 3,152 E.ON AG 88,122 353 Fresenius Medical Care AG & Co. KGaA 22,754 227 Fresenius SE 21,104 414 GEA Group AG 12,341 180 Hannover Rueckversicherungs AG 9,946 157 Heidelberg Cement AG 10,282 258 Henkel AG & Co. KGaA 15,004 408 Henkel AG & Co. KGaA Preferred 22,926 24 Hochtief AG 1,229 1,939 Infineon Technologies AG 19,291 360 K+S AG 21,401 216 Kabel Deutschland Holding AG 12,788 101 Lanxess 7,328 360 Linde AG 51,211 98 MAN SE 9,457 151 Merck KGaA 14,406 331 Metro AG 13,771 329 Muenchener Rueckversicherungs Gesellschaft AG 51,118 ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

481 26,176 17,088 19,762 17,623 197,799 68,975 2,625 7,330 50,939 13,793 9,294 20,841 1,507 195,092 41,089 9,073 4,351 42,027 47,433 6,658 1,743,387 35,417 113,027 152,641 135,749 58,434 12,419 16,453 14,164 16,043 24,459 88,982 73,590 20,019 15,420 36,973 57,825 58,269 24,221 26,004 13,301 13,903 9,416 17,496 33,245 1,378 15,649 16,458 15,998 8,791 62,344 10,377 19,754 9,109

Number of Shares Security

318 Porsche AG Preferred Non-Voting 714 RWE AG 139 RWE AG Preferred Non-Voting 16 Salzgitter AG 1,686 SAP AG 1,433 Siemens AG 988 ThyssenKrupp AG 22 Volkswagen AG 286 Volkswagen AG Preferred

Average Cost ($)

21,897 40,978 8,812 1,364 96,269 147,205 31,091 9,953 41,935 1,598,207

25,686 29,263 5,192 830 134,523 154,525 23,110 4,710 64,793 1,728,728

0.9

6,965 3,399 10,364

6,147 710 6,857

0.0

8,240

8,775

0.0

54,761 12,466 25,467 34,771 21,066 10,050 15,995 16,417

69,102 14,084 27,778 45,623 20,790 15,554 15,785 15,221

6,900

7,357

13,138

19,172

42,738 39,374 10,446 21,660 16,063

36,890 41,503 14,720 17,556 17,651

13,528 16,573 14,553 7,419 8,283 43,357 17,392 8,599 15,367 19,104 9,180 514,667

16,872 21,175 11,827 8,390 9,209 46,691 18,442 8,609 24,000 23,177 10,010 577,188

52,982 35,383 23,815 32,532 11,179 19,416

60,723 41,460 23,036 36,068 8,544 21,658

Greece 270 Coca-Cola Hellenic Bottling Company SA 100 OPAP SA Guernsey 2,196 Resolution Ltd.

0.9

Hong Kong 17,800 AIA Group Ltd. 3,695 Bank of East Asia, Ltd. 9,000 BOC Hong Kong Holdings Ltd. 3,000 Cheung Kong (Holdings) Limited 2,500 CLP Holdings Limited 4,000 Galaxy Entertainment Group Limited 4,000 Hang Lung Properties Ltd. 1,000 Hang Seng Bank Limited 1,049 Henderson Land Development Company Ltd. 7,097 Hong Kong & China Gas Company Limited 2,181 Hong Kong Exchanges & Clearing Limited 4,000 Hutchison Whampoa Limited 3,075 Hysan Development Company, Limited 10,000 Li & Fung Limited 4,517 MTR Corporation Limited 10,974 New World Development Company Limited 2,500 Power Assets Holdings Inc. 6,000 Shangri-La Asia Limited 4,717 Sino Land Company, Limited 4,000 SJM Holdings Limited 3,131 Sun Hung Kai Properties Limited 1,500 Swire Pacific Limited Cl. A 2,600 Swire Properties Limited 4,826 The Link REIT 3,000 The Wharf (Holdings) Limited 2,000 Wheelock and Company Limited Ireland 918 Accenture PLC 722 Covidien PLC 1,152 CRH PLC 669 Eaton Corp PLC 855 Elan Corporation PLC 454 Ingersoll-Rand PLC

Fair % of Net Value ($) Assets

0.3

58,768 11

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Number of Shares Security

817 James Hardie Industries SE 255 Kerry Group PLC 20 Prothena Corp PLC 500 Seagate Technology PLC 645 XL Group PLC

6,086 9,545 160 12,348 13,128 216,574

7,697 13,310 134 15,159 16,072 243,861

0.1

Israel 1,578 Bank Hapoalim Ltd. 7,468 1,479 Bank Leumi Le-Israel 6,455 3,109 Bezeq Israeli Telecommunication Corp. 7,644 487 Israel Chemicals Limited 8,201 153 Mellanox Technologies Ltd. 12,169 1,563 Teva Pharmaceutical Industries Ltd. 77,662 119,599

6,694 4,971 3,535 5,787 9,155 57,731 87,873

0.0

1,000 Daiwa House Industry Co., Ltd. 5,000 Daiwa Securities Group Inc. 200 DeNa Co., Ltd. 1,000 Denso Corp. 100 Dentsu Inc. 600 East Japan Railway Company 300 Eisai Co., Ltd. 100 Electric Power Development Co., Ltd. 400 Fanuc Corporation 100 Fast Retailing Co., Ltd. 1,000 Fuji Heavy Industries Ltd. 600 FUJIFILM Holdings Corporation 4,000 Fujitsu Ltd. 4,000 Fukuoka Financial Group, Inc. NPV 200 Hamamatsu Photonics K.K. 3,000 Hankyu Holdings, Inc. 8,000 Hitachi, Ltd. 100 Hokkaido Electric Power Company, Incorporated 100 Hokuriku Electric Power Company 2,900 Honda Motor Co., Ltd. 700 Hoya Corporation 100 Ibiden Co. Ltd. 3,000 IHI Corporation 5 INPEX Corporation 900 Isetan Mitsukoshi Holdings Ltd. 2,000 Isuzu Motors Limited 3,000 Itochu Corporation 1 Japan Real Estate Investment Corporation 8 Japan Retail Fund Investment Corp. 1,600 Japan Tobacco Inc. 1,200 JFE Holding, Inc. 600 JSR Corporation 5 Jupiter Telecommunications Co., Ltd. 3,600 JX Holdings, Inc. 1,000 Kao Corporation 1,000 Kawasaki Heavy Industries Limited 500 KDDI Corporation 1,000 Keikyu Corporation 1,000 Keio Corporation 100 Keyence Corporation 3,000 Kintetsu Corp. 2,000 Kirin Holdings Company, Limited 1,000 Kobe Steel Ltd. 1,600 Komatsu Ltd. 500 Konica Minolta Holdings, Inc. 2,000 Kubota Corporation 700 Kuraray Company Limited 300 Kyocera Corporation 700 Kyushu Electric Power Company, Incorporated 100 Lawson, Inc. 600 LIXIL Group Corporation 300 Mabuchi Motor Co., Ltd. 400 Makita Corporation 4,000 Marubeni Corp. 6,000 Mazda Motor Corporation 2,000 Mitsubishi Chemical Holdings Corp.

Italy 1,762 Assicurazioni Generali SPA 35,793 459 Atlantia SPA 8,198 1,668 Banca Monte dei Paschi di Siena SPA 3,967 2,892 Banco Popolare Scarl 8,901 3,690 Enel Green Power SPA 7,354 14,437 Enel SPA 70,849 4,458 Eni SPA 99,485 1,451 Fiat Industrial SPA 17,070 1,845 Fiat SPA 11,809 952 Finmeccanica SPA 11,752 23,173 Intesa Sanpaolo SPA 51,676 211 Luxottica Group SPA 7,209 1,101 Mediobanca SPA 10,906 590 Prysmian SPA 10,102 347 Saipem SPA 12,394 2,589 Snam Rete Gas SPA 15,019 29,890 Telecom Italia SPA 34,742 2,706 Terna SPA 10,341 1,087 UBI Banca - Unione di Banche Italiane ScpA 11,302 6,165 UniCredit SPA 54,064 492,933 Japan 2,000 AEON Co., Ltd. 600 Aisin Seiki Co., Ltd. 1,000 Ajinomoto Co., Inc. 2,000 Asahi Glass Company, Limited 700 Asahi Group Holdings, Ltd. 3,000 Asahi Kasei Corporation 900 Astellas Pharma Inc. 300 Benesse Holdings, Inc. 1,300 Bridgestone Corp. 2,200 Canon Inc. 300 Central Japan Railway Company 1,300 Chubu Electric Power Co., Inc. 100 CHUGAI Pharmceuticals Co., Ltd. 400 Credit Saison Co., Ltd. 1,000 Dai Nippon Printing Co., Ltd. 1,000 Daihatsu Motor Co., Ltd. 800 Daiichi Sankyo Company, Limited 600 Daikin Industries, Ltd. 100 Daito Trust Construction Company Ltd. 12

27,344 19,107 9,236 18,414 13,483 16,182 36,187 13,713 28,444 95,886 24,833 29,569 2,210 7,914 14,415 17,410 18,372 17,339 7,787

31,763 8,238 494 4,773 6,807 59,481 107,347 15,717 9,181 5,437 38,248 8,607 6,736 11,620 13,349 11,945 25,568 10,737 5,001 29,982 411,031 22,619 18,345 13,123 14,329 14,764 17,463 39,990 12,348 33,151 84,366 24,042 17,075 1,896 9,847 7,727 19,633 12,134 20,267 9,334

0.2

Average Cost ($)

Fair % of Net Value ($) Assets

11,173 23,687 10,336 29,827 1,868 38,410 12,023 4,216 55,232 16,210 8,780 20,432 21,234 16,977 7,296 15,047 43,118

16,947 27,154 6,526 34,123 2,647 38,371 12,400 2,350 73,068 25,076 12,331 11,863 16,487 15,753 7,164 15,328 46,293

2,744 3,433 98,292 16,561 2,632 6,663 35,322 10,334 9,514 24,893

1,199 1,172 104,717 13,575 1,567 7,612 26,235 8,690 11,734 31,207

10,040 14,858 35,405 26,560 10,731 6,688 20,271 23,926 2,276 32,449 9,115 7,273 20,846 11,465 26,039 2,165 39,826 5,723 18,940 9,953 26,161

9,725 14,568 44,824 22,072 11,277 6,177 19,923 25,822 2,664 34,904 8,772 7,371 27,360 12,159 23,239 1,251 40,084 3,536 22,619 9,034 26,763

11,444 7,246 11,804 12,713 14,095 22,806 7,919 12,216

7,892 6,740 13,206 12,589 18,210 28,107 11,918 9,759

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

3,100 Mitsubishi Corporation 64,426 3,000 Mitsubishi Electric Corporation 28,547 2,000 Mitsubishi Estate Company, Limited 33,826 5,000 Mitsubishi Heavy Industries Ltd. 22,844 4,000 Mitsubishi Material Corporation 13,036 12,000 Mitsubishi Motors Corporation 14,749 900 Mitsubishi Tanabe Pharma Corporation 17,476 21,900 Mitsubishi UFJ Financial Group, Inc. 109,281 2,700 Mitsui & Co. 38,842 2,000 Mitsui Fudosan Co. Ltd. 34,437 1,000 Mitsui O.S.K. Lines Ltd. 7,821 40,000 Mizuho Financial Group, Inc. 70,672 800 MS&AD Insurance Group Holdings, Inc. 19,050 300 Murata Manufacturing Company, Ltd. 17,600 7,000 NEC Corporation 14,552 1,000 NGK Insulators Limited 14,975 200 Nidec Corporation 18,673 600 Nikon Corporation 13,420 200 Nintendo Co., Ltd. 40,494 1 Nippon Building Fund Inc. 10,427 1,000 Nippon Electric Glass Co., Ltd. 15,952 2,000 Nippon Express Co. 8,187 16,000 Nippon Steel Corporation 41,470 900 Nippon Telegraph and Telephone Corporation 41,631 4,000 Nippon Yusen Kabushiki Kaisha 14,671 5,200 Nissan Motor Co., Ltd. 43,383 200 Nissin Foods Holdings Co., Ltd. 7,615 100 Nitori Company Ltd. 10,669 300 Nitto Denko Corp. 10,699 1,100 NKSJ Holdings, Inc. 23,957 6,900 Nomura Holdings, Inc. 34,846 1,000 NSK Ltd. 7,965 1 NTT Data Corporation 3,215 26 NTT DoCoMo, Inc. 47,906 2,000 Odakyu Electric Railway Co., Ltd. 20,358 3,000 Oji Paper Co., Ltd. 15,249 100 Olympus Optical Co., Ltd. 2,366 300 Omron Corporation 7,882 200 ONO Pharmaceutical Co., Ltd. 8,202 100 Oriental Land Co., Ltd. 7,954 130 Orix Corporation 12,451 5,000 Osaka Gas Co., Ltd. 20,054 900 Otsuka Holdings KK 25,277 3,500 Panasonic Corporation 45,904 1,400 Rakuten, Inc. 13,856 4,600 Resona Holdings, Inc. 24,157 1,000 Ricoh Co., Ltd. 13,764 100 Rohm Company Limited 6,251 300 Santen Pharmaceutical Co., Ltd. 13,012 300 Secom Co., Ltd. 14,882 500 Sega Sammy Holding Inc. 12,053 2,000 Sekisui Chemical Co., Ltd. 17,277 1,000 Sekisui House, Ltd. 9,509 1,500 Seven & I Holdings Co. Ltd. 43,855 1,000 Sharp Corporation 13,471 500 Shikoku Electric Power Company Incorporated 15,030 200 Shimano Inc. 10,806 ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

Number of Shares Security

58,550 25,110 47,028 23,767 13,364 12,262 11,635 115,665 39,742 47,947 2,905 71,645 15,624 17,291 14,467 11,654 11,482 17,394 20,942 10,230 5,591 8,129 38,578

700 Shin-Etsu Chemical Co., Ltd. 37,705 1,000 Shinsei Bank, Ltd. 1,863 300 Shionogi & Co., Ltd. 5,879 900 Shiseido Company, Limited 18,498 5,000 Showa Denko K.K. 10,295 100 SMC Corporation 13,225 1,600 SOFTBANK Corporation 52,843 1,800 Sony Corporation 46,072 200 Sony Financial Holdings Inc. 3,432 4,000 Sumitomo Chemical Company Ltd. 16,950 2,400 Sumitomo Corp. 32,812 1,500 Sumitomo Electric Industries, Ltd. 20,657 2,000 Sumitomo Heavy Industries Limited 10,982 1,000 Sumitomo Metal Mining Co, Ltd. 15,481 2,300 Sumitomo Mitsui Financial Group Inc. 79,142 5,000 Sumitomo Mitsui Trust Holdings, Inc. 17,006 1,000 Sumitomo Realty & Development Co., Ltd. 22,388 1,000 Suzuki Motor Corporation 22,484 200 Sysmex Corporation 9,367 700 T&D Holdings, Inc. 10,852 100 Taisho Pharmaceutical Holdings Co., Ltd. 7,788 1,300 Takeda Pharmaceutical Company Limited 62,935 100 TDK Corporation 6,122 3,000 Teijin Limited 9,226 400 Terumo Corporation 22,216 1,000 The Bank of Yokohama, Ltd. 4,771 2,000 The Chiba Bank Ltd. 12,694 1,100 The Chugoku Electric Power Co. Inc. 21,825 17 The Dai-ichi Life Insurance Company Ltd. 25,472 1,000 The Kanzai Electric Power Company, Incorporated 23,641 1,000 The Shizuoka Bank, Ltd. 8,853 2,000 Tobu Railway Company 11,744 500 Tohoku Electric Power Co., Inc. 11,826 1,300 Tokio Marine Holdings, Inc. 35,050 1,000 Tokyo Electric Power Co. 28,414 400 Tokyo Electron Limited 22,327 4,000 Tokyo Gas Co., Ltd. 18,157 3,000 Tokyu Corporation 13,588 2,000 Toppan Printing Co., Ltd. 15,153 3,000 Toray Industries, Inc. 21,343 8,000 Toshiba Corp. 36,202 300 Toyota Industries Corp. 8,485 4,800 Toyota Motor Corporation 186,729 900 Toyota Tsusho Corporation 17,793 200 UniCharm Corp. 7,836 500 West Japan Railway Company 21,762 35 Yahoo! Japan Corporation 11,688 200 Yakult Honsha Co., Ltd. 7,212 230 Yamada Denki Co., Ltd. 12,930 500 Yamaha Motor Co., Ltd. 8,545 1,000 Yamato Holdings Co. Ltd. 14,682 3,880,928

37,458 9,185 48,420 7,497 7,256 14,501 23,112 39,849 6,981 3,084 37,016 20,621 10,196 1,912 7,068 10,092 12,010 14,448 17,969 25,110 20,937 10,786 20,651 10,402 3,195 11,384 14,914 8,353 17,176 10,804 41,971 3,479

Average Cost ($)

Fair % of Net Value ($) Assets

42,034 1,963 4,950 12,565 7,463 17,831 57,591 19,778 3,536 12,308 30,284 16,998 9,346 13,847 81,995 17,222 32,688 25,742 9,093 8,351 6,797 57,540 3,565 7,302 15,638 4,581 11,573 17,063 23,403 10,379 9,656 10,448 4,610 35,494 2,354 18,049 18,095 16,671 12,193 18,118 30,862 9,393 220,445 21,845 10,310 19,519 11,184 8,657 8,767 5,436 15,006 3,726,456

1.9

7,865 12,607 13

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Jersey 466 Delphi Automotive PLC 6,324 Glencore International PLC 128 Randgold Resources Limited 913 Shire PLC 572 Wolseley PLC

16,742 39,807 10,072 26,145 21,397 114,163

17,725 35,867 12,286 27,794 26,776 120,448

41,095

26,862

10,190 15,118 10,917 12,207 89,527

10,411 17,875 11,041 11,959 78,148

Luxembourg 1,586 ArcelorMittal 121 Millicom International Cellular SA SDR 629 SES Global FDR 467 Subsea 7 SA 585 Tenaris SA Malta 5,836 BGP Holdings PLC Mauritius 18,000 Golden Agri-Resources Limited Netherlands 2,206 AEGON NV 407 Akzo Nobel NV 574 ASML Holding NV 1,411 DE Master Blenders 1753 NV 661 European Aeronautic Defence and Space Company 130 Fugro NV 137 Gemalto NV 354 Heineken Holding NV 323 Heineken NV 7,244 ING Groep NV 1,935 Koninklijke (Royal) KPN NV 1,823 Koninklijke (Royal) Philips Electronics NV 1,315 Koninklijke Ahold NV 345 Koninklijke DSM NV 138 Koninklijke Vopak NV 520 LyondellBasell Industries NV 404 Qiagen NV 135 Randstad Holdings NV 1,361 Reed Elsevier NV 1,345 STMicroelectronics NV 480 TNT Express NV 2,951 Unilever NV 659 Wolters Kluwer NV 284 Ziggo NV

0.0





0.0

9,396

9,454

0.0

15,504 19,723 21,254 15,779

13,888 26,502 36,122 16,117

18,786 9,470 9,009 14,540 15,743 64,605 30,590

25,515 7,570 12,203 19,214 21,336 67,072 9,436

45,819 18,468 14,770 8,404 24,827 7,920 5,931 17,428 10,338 5,840 95,866 12,440 9,047 512,101

47,535 17,498 20,694 9,623 29,540 7,267 4,902 19,924 9,450 5,313 111,451 13,385 9,195 560,752

New Zealand 1,956 Fletcher Building Limited 6,754 Telecom Corporation of New Zealand Limited

13,711

13,442

11,848 25,559

12,547 25,989

Norway 1,871 DnB Holding ASA 3,980 Norsk Hydro ASA

20,172 17,154

23,541 19,753

14

0.1

0.3

0.0

Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

2,283 Orkla ASA 1,915 StatoilHydro ASA 1,110 Telenor ASA 361 Yara International ASA

18,460 46,206 16,246 14,101 132,339

19,776 47,641 22,250 17,651 150,612

0.1

1,799 9,163 6,605 5,387 14,621 37,575

205 7,125 5,338 5,482 9,824 27,974

0.0

Portugal 175 Banco Espirito Santo, SA 2,379 Electricidade de Portugal SA 346 Galp Energia, SGPS, SA Series B 286 Jeronimo Martins, SGPS, SA 2,005 Portugal Telecom SGPS, SA

Singapore 5,000 Ascendas Real Estate Investment Trust 9,767 5,000 Capitaland Limited 12,936 5,000 CapitaMall Trust 8,422 1,000 City Developments Ltd. 8,177 3,197 DBS Group Holdings Limited 31,768 3,000 Fraser and Neave Limited 13,345 4,000 Global Logistic Properties Limited 8,799 15,000 Hutchison Port Holdings Trust 13,443 3,100 Keppel Corporation Limited 23,603 5,198 Oversea-Chinese Banking Corporation Limited 33,703 3,000 SembCorp Industries Limited 13,076 1,000 Singapore Airlines Limited 12,477 3,000 Singapore Exchange Limited 17,103 6,000 Singapore Press Holdings Limited 18,152 6,000 Singapore Technologies Engineering Limited 14,318 13,000 Singapore Telecommunications Limited 30,761 2,039 United Overseas Bank Ltd. 27,578 3,000 Wilmar International Ltd. 12,961 310,389 Spain 506 Abertis Infraestructuras SA 95 Acciona SA 223 ACS, Actividades de Construccion y Servicios SA 375 Amadeus IT Holding SA Series A 9,948 Banco Bilbao Vizcaya Argentaria SA 6,747 Banco de Sabadell SA 11,170 Banco Popular Espanol SA 18,209 Banco Santander SA 3,793 Caixabank 477 Distribuidora Internacional de Alimentacion 634 Enagas 1,067 Ferrovial SA 562 Gas Natural SDG SA 207 Grifols SA 6,019 Iberdrola SA 399 Industria de Diseno Textil SA 1,980 International Consolidated Airlines Group SA 166 Red Electrica Corporacion SA 1,469 Repsol SA, Rights (Exp. 02/21/13)

10,604 7,608

9,649 15,064 8,672 10,464 38,581 23,647 9,055 11,713 27,742 41,184 12,825 8,754 17,100 19,641 18,615 34,884 32,891 8,135 348,616

0.2

8,238 7,010

10,760 7,597 93,921 22,308 15,962 161,090 15,627

5,417 9,333 90,162 17,407 8,550 143,446 12,599

2,267 14,060 14,660 7,950 4,848 43,934 35,437

3,007 13,302 15,662 9,925 7,164 32,559 55,006

8,452 8,740 –

5,745 8,075 889

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Number of Shares Security

1,469 Repsol YPF, SA 7,745 Telefonica SA

38,364 156,255 680,444

29,510 102,705 585,711

Sweden 784 AB SKF Series B 17,530 694 Alfa Laval AB 11,601 537 Assa Abloy AB Series B 14,369 1,338 Atlas Copco AB Series A 32,050 774 Atlas Copco AB Series B 17,268 973 Boliden AB 16,664 584 Electrolux AB Series B NPV 13,348 632 Elekta AB Series B 7,818 458 Getinge AB 10,757 1,662 Hennes & Mauritz AB Cl. B 54,656 381 Hexagon AB Series B 9,835 950 Industrivarden AB 13,070 1,000 Investor AB Series B 19,169 875 Kinnevik Investment AB Cl. B 18,689 425 Lundin Petroleum AB 10,498 4,876 Nordea Bank AB 46,388 1,699 Sandvik AB NPV 24,032 658 Scania AB Cl. B NPV 11,412 2,763 Skandinaviska Enskilda Banken Series A 20,420 687 Skanska AB Series B 12,246 1,159 Svenska Cellulosa AB 15,127 914 Svenska Handelsbanken AB Series A 27,467 1,628 Swedbank AB Series A 25,261 500 Swedish Match AB 11,522 647 Tele2 AB Series B 9,885 5,607 Telefonaktiebolaget LM Ericsson Cl. B 58,401 3,749 Teliasonera AB 26,223 2,561 Volvo AB Series B 28,619 584,325

19,559 14,362 19,951 36,490 18,717 18,157 15,221 9,783 15,412 57,046 9,505 15,650 25,987 18,108 9,712 46,315 26,897 13,517 23,350 11,149 24,996 32,490 31,600 16,688 11,588 55,789 25,265 34,785 658,089

5 Sika AG 93 Sonova Holding AG 82 Sulzer AG 235 Swatch Group 10 Swiss Life Holding 170 Swiss Prime Site AG 651 Swiss Re Ltd. 46 Swisscom AG 166 Syngenta AG Registered 681 TE Connectivity Limited 615 Transocean Ltd. 613 Tyco International Ltd. 6,888 UBS AG 254 Zurich Financial Services AG

Switzerland 4,029 ABB Ltd. 78,752 485 ACE Limited 32,512 235 Actelion Ltd. 10,585 144 Adecco SA 7,038 235 Aryzta AG 12,913 106 Baloise Holding Ltd. 7,947 953 Compagnie Financiere Richemont SA 49,942 1,979 Credit Suisse Group 66,123 200 Garmin Ltd. 8,362 100 Geberit AG 18,469 11 Givaudan SA 10,135 493 Holcim Ltd. 31,115 530 Julius Baer Group Ltd. 21,827 119 Kuehne & Nagel International AG 13,690 5 Lindt & Spruengli AG 15,089 14 Lonza Group AG 1,482 5,753 Nestlé SA 319,817 270 Noble Corporation 9,769 4,027 Novartis AG 229,771 42 Partners Group Holding AG 8,738 300 Pentair Ltd. Registered 13,019 1,235 Roche Holding AG 203,924 101 Schindler Holding AG 11,257 9 SGS Societe Generale de Surveillance Holding SA 14,872 ING DIRECT Annual Financial Statements December 31, 2012

82,155 38,493 11,125 7,523 11,973 9,026 73,948 47,908 8,119 21,892 11,520 35,815 18,629 14,236 16,150 751 372,887 9,349 251,599 9,619 14,667 247,128 14,488

0.3

0.3

240 1,987 344 479 439 2,614 809 421 2,408 895 2,094 6,047 997 6,061 2,728 20,813 6,094 3,805 33,759 3,485 2,244 2,010 14,487 578 566 825 523 8,127 622 3,170 288 4,511 300 1,963 205 2,614 15,000 4,094 8,916 1,727 32,154

United Kingdom 3i Group PLC Aberdeen Asset Management PLC Admiral Group PLC Aggreko PLC AMEC PLC Anglo American PLC Antofagasta PLC AON PLC ARM Holdings PLC Associated British Foods PLC AstraZeneca PLC Aviva PLC Babcock International Group PLC BAE Systems PLC Balfour Beatty PLC Barclays PLC BG Group PLC BHP Billiton PLC BP PLC British American Tobacco PLC British Land Company, PLC British Sky Broadcasting Group PLC BT Group PLC Bunzl PLC Burberry Group PLC Capita Group PLC Carnival PLC Centrica PLC Cobham PLC Compass Group PLC Croda International PLC Diageo PLC Ensco PLC Cl.A Experian Group Ltd. Fresnillo PLC G4S PLC Genting International PLC GKN PLC GlaxoSmithKline PLC Hammerson Property & Investment Development Corporation PLC HSBC Holdings PLC

Average Cost ($)

Fair % of Net Value ($) Assets

10,428 8,674 11,576 36,887 686 14,152 36,575 17,221 49,213 23,761 37,518 26,096 102,208 60,454 1,632,597

11,468 10,255 12,850 44,640 1,319 14,115 46,656 19,700 66,182 25,145 26,980 17,823 106,894 67,207 1,820,064

1,501 7,682 8,435 14,508 8,219 101,685 15,366 19,609 18,282 16,566 99,588 35,174 11,848 30,119 12,004 81,404 124,031 122,386 245,200 147,439 16,500 20,598 44,409 6,829 9,203 10,135 17,236 40,581 2,253 26,960 10,246 94,252 16,609 25,458 6,149 10,513 17,375 10,945 187,907

842 11,770 6,448 13,467 7,108 79,978 17,281 23,284 29,824 22,589 98,411 36,436 15,546 32,995 12,065 88,129 99,602 130,927 231,697 175,665 20,378 24,878 54,097 9,414 11,213 10,065 19,927 43,808 2,216 37,136 11,057 130,183 17,681 31,069 6,111 10,834 16,856 15,136 192,187

11,292 291,502

13,621 336,050

1.0

19,830 15

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

149 ICAP PLC 832 742 IMI PLC 10,448 1,932 Imperial Tobacco Group PLC 67,384 350 Inmarsat PLC 4,058 537 InterContinental Hotels Group PLC 12,668 323 Intertek Group PLC 10,280 1,727 Invensys PLC 6,029 1,387 Investec PLC 9,141 6,275 ITV PLC 6,948 3,822 J Sainsbury PLC 17,851 388 Johnson Matthey PLC 10,387 321 Kazakhmys PLC 7,927 3,745 Kingfisher PLC 13,675 1,900 Land Securities Group PLC 21,106 8,479 Legal & General Group PLC 14,966 78,003 Lloyds TSB Group PLC 59,559 3,793 Marks & Spencer Group PLC 20,888 2,462 Meggitt PLC 13,459 1,915 Melrose Industries PLC 6,523 6,620 National Grid PLC 62,880 285 Next PLC 9,515 9,007 Old Mutual PLC 21,300 1,591 Pearson PLC 26,528 616 Petrofac Limited 14,859 4,669 Prudential PLC 47,937 1,224 Reckitt Benckiser Group PLC 67,276 1,730 Reed Elsevier PLC 14,696 1,592 Rexam PLC 9,666 2,328 Rio Tinto PLC 136,342 2,959 Rolls-Royce Holdings PLC 28,873 281 Rowan Companies PLC 9,926 3,512 Royal & Sun Alliance Insurance Group PLC 5,931 3,510 Royal Bank of Scotland Group PLC 19,876 6,733 Royal Dutch Shell PLC Cl. A 199,037 4,883 Royal Dutch Shell PLC Cl. B 163,093 1,739 SABMiller PLC 60,941 308 Serco Group PLC 2,333 402 Severn Trent PLC 10,355 1,813 Smith & Nephew PLC 18,435 635 Smiths Group PLC 12,820 1,657 SSE PLC 30,494 4,079 Standard Chartered PLC 93,749 4,083 Standard Life PLC 13,221 1,310 Tate & Lyle PLC 14,403 15,467 Tesco PLC 94,785 3,116 The Sage Group PLC 14,036 239 The Weir Group PLC 6,746 1,829 Tullow Oil PLC 37,435 2,129 Unilever PLC 65,623 1,197 United Utilities Group PLC 11,562 88,020 Vodafone Group PLC 233,515 426 Whitbread PLC 11,047 3,510 William Morrison Supermarkets PLC 16,007 2,379 WPP PLC 27,685 3,880 Xstrata PLC 67,491 3,992,545

16

Fair % of Net Value ($) Assets

Number of Shares Security

739 13,105 74,018 3,286 14,803 16,153 9,069 9,473 10,667 21,300 14,877 4,028 17,168 24,960 19,948 60,392 23,431 15,197 6,916 75,145 17,062 25,891 30,541 16,155 65,183 76,659 17,919 11,216 132,054 41,717 8,737

915 2,368 139 793 1,320 472 709 551 100 322 122 269 1,555 260 200 450 444 3,034 527 234 737 1,384 2,189 560 339 413 1,150 195 697 483 583 231 272 1,403 1,482 1,011 161 8,486 230 713 70 164 203 684 638 243 16,133 1,770 804 1,074 256 311 371 200 2,727 278

7,128 18,399 230,753 171,492 79,283 2,663 10,224 19,891 12,179 37,939 103,611 21,890 16,098 83,974 14,818 7,237 37,119 81,359 13,007 219,597 16,803 14,911 34,097 66,268 4,346,530

2.4

Average Cost ($)

United States 3M Co. 75,857 Abbott Laboratories 131,816 Abercrombie & Fitch Co. Cl. A 6,770 Adobe Systems Inc. 25,676 Advanced Micro Devices Incorporated 11,225 Aetna Inc. 17,621 AFLAC Incorporated 36,199 Agilent Technologies, Inc. 20,289 AGL Resources Inc. 4,080 Air Products and Chemicals Inc. 27,877 Airgas, Inc. 9,396 Akamai Technologies, Inc. 10,426 Alcoa Inc. 17,235 Alexion Pharmaceuticals Inc. 24,514 Allegheny Technologies Inc. 13,311 Allergan, Inc. 32,903 Altera Corp. 13,240 Altria Group Inc. 79,152 Amazon.com, Inc. 93,298 Ameren Corp. 6,747 American Electric Power Company, Inc. 27,303 American Express Company 62,863 American International Group, Inc. 67,767 American Tower Corp. 31,744 Ameriprise Financial, Inc. 18,734 AmerisourceBergen Corporation 15,300 Amgen Inc. 72,926 Amphenol Corp. Cl. A 8,241 Anadarko Petroleum Corporation 46,916 Analog Devices, Inc. 17,048 Apache Corporation 59,023 Apartment Investment & Management Company Cl. A 6,469 Apollo Group, Inc. 17,237 Apple Computer, Inc. 537,486 Applied Materials, Inc. 17,886 Archer-Daniels-Midland Company 30,102 Assurant, Inc. 6,177 AT&T Inc. 252,030 Autodesk, Inc. 8,224 Automatic Data Processing, Inc. 34,086 AutoZone, Inc. 24,057 Avalonbay Communities, Inc. 19,006 Avery Dennison Corporation 6,827 Avon Products, Inc. 15,328 Baker Hughes Inc. 34,387 Ball Corp. 8,630 Bank of America Corporation 176,637 Bank of New York Mellon Corporation 41,521 Baxter International Inc. 44,222 BB&T Corporation 29,288 Beam, Inc. 11,439 Becton, Dickinson and Company 23,196 Bed Bath & Beyond Inc. 18,411 Bemis Company, Inc. 6,568 Berkshire Hathaway Inc. Cl. B 222,566 Best Buy Co. Inc. 11,200

Fair % of Net Value ($) Assets

84,507 154,306 6,632 29,714 3,151 21,742 37,455 22,444 3,974 26,914 11,078 10,944 13,410 24,241 6,040 41,042 15,215 94,853 131,717 7,153 31,281 79,131 76,862 43,025 21,119 17,739 98,776 12,550 51,526 20,203 45,511 6,215 5,660 743,864 16,849 27,534 5,555 284,631 8,083 40,426 24,683 22,112 7,051 9,777 25,924 10,814 186,311 45,266 53,311 31,098 15,554 24,191 20,622 6,659 243,532 3,274

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

337 Biogen Idec Inc. 193 BlackRock, Inc. 295 BMC Software, Inc. 166 BorgWagner, Inc. 204 Boston Properties, Inc. 2,073 Boston Scientific Corporation 2,464 Bristol-Myers Squibb Company 793 Broadcom Corporation Cl. A 210 Brown Forman Corp. 255 C.H. Robinson Worldwide, Inc. 123 C.R. Bard Inc. 647 CA Inc. 326 Cablevision Systems Corporation New York Group Cl. A 345 Cabot Oil & Gas Corporation 395 Cameron International Corporation 281 Campbell Soup Co. 864 Capital One Financial Corp. 413 Cardinal Health, Inc. 477 CareFusion Corporation 387 CarMax, Inc. 710 Carnival Corporation 979 Caterpillar Inc. 692 CBRE Group, Inc. 852 CBS Corporation Cl. B 582 Celgene Corporation 685 Centerpoint Energy Inc. 854 CenturyLink Inc. 229 Cerner Corporation 102 CF Industries Holdings, Inc. 709 Chesapeake Energy Corporation 2,892 Chevron Corporation 53 Chipotle Mexican Grill, Inc. Cl. A 394 CIGNA Corporation 224 Cincinnati Financial Corp. 200 Cintas Corporation 7,953 Cisco Systems, Inc. 4,349 Citigroup Inc. 242 Citrix Systems, Inc. 146 Cliffs Natural Resources Inc. 151 Clorox Company 515 CME Group Inc. 349 CMS Energy Corp. 376 Coach, Inc. 298 Coca-Cola Eneterprises Inc. 402 Cognizant Technology Solutions Corp. Cl. A 629 Colgate-Palmolive Company 3,890 Comcast Corporation Cl. A 310 Comerica Inc. 281 Computer Sciences Corporation 746 ConAgra Foods, Inc. 1,741 ConocoPhillips 309 CONSOL Energy Inc. 451 Consolidated Edison Inc. 279 Constellation Brands, Inc. Cl. A 2,273 Corning Incorporated 604 Costco Wholesale Corp. 222 Coventry Health Care, Inc.

Average Cost ($)

Fair % of Net Value ($) Assets

30,570 36,576 11,546 12,523 18,038 15,864 68,007 28,364 10,403 18,183 11,928 14,317

49,142 39,686 11,635 11,826 21,471 11,795 79,925 26,188 13,204 16,038 11,957 14,139

11,110 12,814 18,816 9,640 40,453 15,306 11,891 12,804 25,009 82,612 12,055 16,793 37,176 13,295 36,139 12,404 14,952 17,557 273,871 19,238 13,195 7,778 7,661 155,959 166,291 15,477 10,137 10,007 30,490 7,493 19,591 7,516

4,845 17,073 22,180 9,749 49,795 16,917 13,560 14,451 25,961 87,273 13,705 32,247 45,532 13,110 33,231 17,683 20,605 11,714 311,313 15,660 20,944 8,721 8,133 155,448 171,221 15,825 5,600 10,999 25,967 8,460 20,765 9,408

ING DIRECT Annual Financial Statements December 31, 2012

23,392 52,162 94,107 10,743 9,438 18,184 88,540 14,621 24,392 8,101 34,945 45,520 7,200

29,602 65,420 144,638 9,349 11,194 21,890 100,460 9,866 24,907 9,821 28,511 59,365 9,895

Number of Shares Security

Average Cost ($)

449 Crown Castle International Corp. 26,289 1,579 CSX Corp. 31,664 278 Cummins Inc. 26,057 1,772 CVS Caremark Corporation 63,796 464 D.R. Horton Inc. 8,084 833 Danaher Corporation 36,122 147 Darden Restaurants, Inc. 6,623 152 DaVita HealthCare Partners Inc. 11,960 364 Dean Foods Company 6,686 583 Deere & Company 46,076 1,789 Dell Inc. 25,039 756 Denbury Resources Inc. 14,333 227 DENTSPLY International Inc. 8,606 555 Devon Energy Corporation 39,846 126 Diamond Offshore Drilling Inc. 9,066 957 DIRECTV 39,431 785 Discover Financial Services 19,546 394 Discovery Communications Inc. Series A 17,751 400 Dollar General Corp. 19,857 364 Dollar Tree, Inc. 15,416 874 Dominion Resources, Inc. 40,950 297 Dover Corporation 16,606 384 Dr. Pepper Snapple Group, Inc. 13,338 220 DTE Energy Company 11,334 1,063 Duke Energy Corporation 64,328 1,372 E.I. du Pont de Nemours and Company 62,328 225 Eastman Chemical Company 10,410 1,737 eBay Inc. 53,451 353 Ecolab Inc. 15,494 516 Edison International 19,874 200 Edwards Lifesciences Corporation 17,082 595 Electronic Arts Inc. 9,558 1,540 Eli Lilly and Company 60,106 3,150 EMC Corporation 74,305 1,032 Emerson Electric Co. 49,078 255 Entergy Corporation 19,483 404 EOG Resources, Inc. 39,791 233 EQT Corporation 13,173 168 Equifax Inc. 6,995 419 Equity Residential 20,172 1,201 Exelon Corp. 51,625 217 Expedia, Inc. 8,865 217 Expeditors International of Washington, Inc. 9,134 1,233 Express Scripts Holding Company 64,693 6,784 Exxon Mobil Corporation 536,480 75 F5 Networks, Inc. 9,928 100 Family Dollar Stores Inc. 4,746 384 Fastenal Company 14,796 448 FedEx Corp. 39,583 455 Fidelity National Information Services, Inc. 13,661 1,441 Fifth Third Bancorp 19,313 20 First Solar, Inc. 2,644 651 FirstEnergy Corp. 29,667 211 Fiserv, Inc. 14,239 47 FLIR Systems, Inc. 1,333 72 Flowserve Corporation 6,906 272 Fluor Corporation 14,562

Fair % of Net Value ($) Assets

32,224 30,973 29,962 85,257 9,120 46,334 6,590 16,705 5,974 50,116 18,027 12,182 8,942 28,729 8,518 47,758 30,101 24,879 17,551 14,686 45,033 19,427 16,871 13,139 67,449 61,385 15,237 88,169 25,243 23,189 17,930 8,594 75,550 79,304 54,386 16,168 48,537 13,665 9,044 23,606 35,516 13,264 8,535 66,205 584,381 7,242 6,307 17,830 40,882 15,759 21,787 614 27,029 16,587 1,043 10,510 15,906 17

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

200 FMC Corporation 9,958 358 FMC Technologies, Inc. 12,809 5,755 Ford Motor Company 70,164 346 Forest Laboratories, Inc. 11,453 100 Fossil, Inc. 13,318 223 Franklin Resources, Inc. 24,651 1,316 Freeport-McMoran Copper & Gold, Inc. 54,782 1,791 Frontier Communications Corporation 9,141 249 GameStop Corporation 6,635 465 Gannett Co., Inc. 6,570 508 General Dynamics Corp. 36,833 15,661 General Electric Company 282,936 926 General Mills, Inc. 34,365 295 Genuine Parts Company 17,907 211 Genworth Financial Inc. Cl. A 3,528 1,133 Gilead Sciences, Inc. 51,539 755 Goodyear Tire & Rubber Company 9,389 391 Google Inc. Cl. A 221,073 492 H&R Block, Inc. 8,672 417 H.J. Heinz Company 20,541 1,353 Halliburton Company 48,193 372 Harley-Davidson, Inc. 15,203 123 Harman International Industries Inc. 5,362 204 Harris Corporation 8,793 200 Hasbro, Inc. 9,486 702 HCP, Inc. 26,422 404 Health Care REIT, Inc. 22,084 183 Helmerich & Payne, Inc. 10,960 248 Hershey Foods Corporation 15,814 453 Hess Corporation 32,031 2,641 Hewlett-Packard Company 106,169 1,174 Honeywell International Inc. 62,223 232 Hormel Foods Corporation 7,189 328 Hospira, Inc. 17,426 1,185 Host Hotels & Resorts Inc. 16,240 824 Hudson City Bancorp, Inc. 8,310 233 Humana Inc. 14,006 2,043 Huntington Bancshares Incorporated 11,615 595 Illinois Tool Works Inc. 26,180 100 Integrys Energy Group, Inc. 5,200 7,265 Intel Corporation 161,331 116 Intercontinental Exchange Inc. 12,682 1,583 International Business Machines Corporation 253,928 100 International Flavours & Fragrances Inc. 5,771 635 International Game Technology 10,824 633 International Paper Co. 14,386 430 Intuit Inc. 22,216 55 Intuitive Surgical, Inc. 19,175 279 Iron Mountain Incorporated 7,796 3,900 iShares MSCI EAFE Index Fund 216,268 300 iShares S&P 500 Index Fund 42,360 73 J.C. Penney Company, Inc. 2,384 137 Jabil Circuit, Inc. 2,862 266 Jacobs Engineering Group Inc. 11,217 421 JDS Uniphase Corporation 5,524 4,140 Johnson & Johnson 268,450 915 Johnson Controls, Inc. 26,240 149 Joy Global Inc. 13,598 18

Fair % of Net Value ($) Assets

Number of Shares Security

11,638 15,245 74,132 12,156 9,261 27,883 44,769 7,643 6,209 8,326 35,003 326,826 37,221 18,648 1,576 82,823 10,364 275,851 9,083 23,929 46,700 18,076 5,460 9,935 7,138 31,534 24,630 10,196 17,816 23,855 37,409 74,131 7,198 10,186 18,471 6,647 15,906 12,986 35,996 5,194 149,083 14,281

5,611 JPMorgan Chase & Co. 215,252 839 Juniper Networks, Inc. 21,696 395 Kellogg Co. 21,199 922 KeyCorp 7,455 552 Kimberly-Clark Corporation 39,849 656 Kimco Realty Corp. 11,917 961 Kinder Morgan Inc. 31,923 231 KLA-Tencor Corporation 9,767 275 Kohl’s Corporation 14,101 795 Kraft Foods Group, Inc. 26,777 94 L-3 Communications Holdings, Inc. 8,201 98 Laboratory Corporation of America Holdings 8,703 268 Lam Research Corporation 8,710 247 Legg Mason, Inc. 6,361 279 Leggett & Platt, Incorporated 6,481 200 Lennar Corporation Cl. A 5,217 200 Leucadia National Corporation 5,134 290 Life Technologies Corporation 13,550 387 Limited Brands 12,833 264 Lincoln National Corporation 6,415 463 Linear Technology Corporation 15,709 372 Lockheed Martin Corporation 30,115 490 Loews Corporation 19,444 188 Lorillard, Inc. 16,788 1,682 Lowe’s Companies, Inc. 41,912 1,163 LSI Corporation 8,591 191 M&T Bank Corporation 16,971 654 Macy’s, Inc. 15,612 1,010 Marathon Oil Corporation 27,039 485 Marathon Petroleum Corporation 17,141 276 Marriott International, Inc. 8,007 701 Marsh & McLennan Companies, Inc. 19,699 613 Masco Corp. 8,726 158 MasterCard, Inc. 53,445 605 Mattel, Inc. 16,536 221 McCormick & Company, Incorporated Non-Voting 9,443 1,477 McDonald’s Corporation 123,046 350 Mckesson Corporation 22,571 299 Mead Johnson Nutrition Company Cl. A 19,051 314 MeadWestvaco Corp. 7,668 1,454 Medtronic, Inc. 54,786 4,550 Merck & Co., Inc. 163,753 1,653 MetLife, Inc. 66,104 636 Metropcs Communications Inc. 7,019 405 Microchip Technology Incorporated 12,423 1,495 Micron Technology, Inc. 12,141 11,314 Microsoft Corporation 310,206 200 Molex Inc. 5,078 143 Molson Coors Brewing Company Cl. B 5,926 2,672 Mondelez International Inc. Cl. A 58,632 806 Monsanto Company 62,779 200 Monster Beverage Corporation 14,105 340 Moodys Corporation 11,262 2,064 Morgan Stanley 46,833 460 Motorola Solutions, Inc. 18,151 292 Murphy Oil Corporation 19,981 641 Mylan Inc. 14,142

301,648 6,619 8,950 25,085 25,445 26,810 8,611 220,695 42,768 1,432 2,627 11,264 5,662 288,676 27,914 9,453

Average Cost ($)

Fair % of Net Value ($) Assets

245,520 16,424 21,944 7,722 46,342 12,607 33,772 10,974 11,757 35,941 7,161 8,441 9,629 6,317 7,557 7,691 4,731 14,164 18,116 6,799 15,788 34,161 19,862 21,814 59,428 8,190 18,704 25,384 30,792 30,388 10,232 24,028 10,165 77,267 22,032 13,959 129,640 33,760 19,597 9,954 59,327 185,335 54,145 6,288 13,125 9,413 300,708 5,433 6,084 67,722 75,884 10,522 17,018 39,255 25,477 17,294 17,515

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

211 NASDAQ OMX Group, Inc. 608 National-Oilwell Varco Inc. 557 Netapp Inc. 43 Netflix Inc. 421 Newell Rubbermaid Inc. 191 Newfield Exploration Company 766 Newmont Mining Corporation 2,928 News Corporation Cl. A 591 NextEra Energy, Inc. 1,016 Nike Inc. Cl. B 574 NiSource Inc. 280 Noble Energy, Inc. 211 Nordstrom, Inc. 486 Norfolk Southern Corp. 453 Northeast Utilities 256 Northern Trust Corporation 381 Northrop Grumman Corporation 521 NRG Energy, Inc. 474 Nucor Corp. 1,063 NVIDIA Corporation 296 NYSE Euronext 1,185 Occidental Petroleum Corporation 427 Omnicom Group Inc. 324 ONEOK, Inc. 5,525 Oracle Corporation 221 O’Reilly Automotive, Inc. 202 Owens-Illinois, Inc. 546 PACCAR Inc. 205 Pall Corporation 242 Parker-Hannifin Corporation 153 Patterson Companies Inc 530 Paychex, Inc. 295 Peabody Energy Corporation 652 People’s United Financial Inc. 300 Pepco Holdings, Inc. 2,260 PepsiCo, Inc. 228 PerkinElmer Inc. 156 Perrigo Company 174 PetSmart, Inc. 11,001 Pfizer Inc. 614 PG&E Corporation 2,440 Philip Morris International Inc. 940 Phillips 66 151 Pinnacle West Capital Corporation 197 Pioneer Natural Resources Company 82 Pitney Bowes Inc. 223 Plum Creek Timber Company Inc. 747 PNC Financial Services Group 235 PPG Industries Inc. 899 PPL Corp. 415 Praxair, Inc. 198 Precision Castparts Corp. 69 Priceline.com Incorporated 300 Principal Financial Group, Inc. 690 Prologis, Inc. 700 Prudential Financial, Inc. 725 Public Service Enterprise Group Incorporated

5,347 34,943 22,961 10,239 6,983 13,752 42,067 46,625 34,965 43,062 10,695 23,389 10,175 30,139 14,850 13,638 22,600 11,964 20,375 17,330 10,902 103,218 18,470 7,566 151,207 15,475 6,379 24,165 12,995 19,144 5,194 15,478 16,341 9,142 5,552 146,844 6,302 15,492 11,746 214,555 27,922 165,014 30,325 6,988 15,713 2,597 8,700 41,636 19,845 25,454 39,009 27,414 28,057 7,958 18,436 38,909

5,249 41,349 18,588 3,966 9,326 5,088 35,385 74,356 40,663 52,148 14,205 28,336 11,229 29,885 17,605 12,770 25,612 11,909 20,349 12,995 9,283 90,302 21,224 13,774 183,117 19,661 4,270 24,543 12,284 20,478 5,208 16,411 7,811 7,841 5,852 153,855 7,198 16,136 11,830 274,552 24,540 203,024 49,640 7,654 20,891 868 9,835 43,327 31,636 25,593 45,156 37,293 42,631 8,511 25,045 37,126

220 640 336 2,551 300 238 100 245 507 306 2,203 321 523 200 209 187 160 320 218 500 183 400 185 1,929 210 400 332 126 192 447 950 34 1,409 532 1,026 4,724 519 250 953 1,150 322 711 118 368 765 858 905 416 969 372 218 283 391 265 1,618 427 306 751

26,152 7,121 10,768 135,318 6,264 13,791 9,720 12,485 27,785 12,088 13,898 9,290 18,169 5,774 15,937 10,573 15,698 12,270 4,877 6,075 22,192 18,613 8,625 141,923 10,115 7,933 17,848 12,623 12,559 47,351 14,523 1,771 16,157 18,833 24,352 20,884 20,498 17,191 21,590 39,403

31,724 11,561 10,113 157,374 8,141 13,790 14,911 15,312 29,028 16,117 15,602 9,368 21,548 6,326 17,461 10,818 17,733 17,236 3,921 5,625 30,583 17,324 8,400 132,952 12,099 6,967 23,417 19,279 14,051 70,292 16,197 2,671 14,352 17,675 27,933 26,596 18,662 18,395 10,797 61,359

16,738 26,821 9,063 19,014 20,932 14,278 27,919 22,168 49,966 6,643 6,082 13,377 6,087 7,404 46,804 10,452 10,818 8,845

18,369 33,247 10,944 20,063 21,565 16,062 28,500 26,946 57,022 6,202 7,037 17,414 6,569 11,611 49,812 10,521 14,157 7,993

ING DIRECT Annual Financial Statements December 31, 2012

23,325

22,060

Public Storage, Inc. PulteGroup Inc. QEP Resources Inc. QUALCOMM Incorporated Quanta Services, Inc. Quest Diagnostics Incorporated Ralph Lauren Corporation Range Resources Corporation Raytheon Company Red Hat, Inc. Regions Financial Corporation Republic Services, Inc. Cl. A Reynolds American Inc. Robert Half International Inc. Rockwell Automation Inc. Rockwell Collins, Inc. Roper Industries, Inc. Ross Stores Inc. Safeway Inc. SAIC, Inc. Salesforce.com, Inc. SanDisk Corporation SCANA Corporation Schlumberger Limited Scripps Networks Interactive Cl. A Sealed Air Corp. Sempra Energy Sherwin Williams Company Sigma Aldrich Corporation Simon Property Group, Inc. SLM Corp. Snap-on Incorporated Southwest Airlines Co. Southwestern Energy Company Spectra Energy Corporation Sprint Nextel Corporation St. Jude Medical, Inc. Stanley Black & Decker Inc. Staples, Inc. Starbucks Corporation Starwood Hotels & Resorts Worldwide, Inc. State Street Corporation Stericycle, Inc. Stryker Corporation SunTrust Banks, Inc. Symantec Corporation Sysco Corp. T. Rowe Price Group Inc. Target Corporation Teco Energy Inc. Tenet Healthcare Corporation Teradata Corporation Teradyne, Inc. Tesoro Corporation Texas Instruments Incorporated Textron Inc. The ADT Corporation The AES Corporation

19

ING DIRECT Streetwise Balanced Income Portfolio Number of Shares Security



20

619 1,016 1,589 428 5,811 1,781 98 373 452 680 480 2,193 900 114 677 435 450 4,085 976 1,295 1,109 550 2,610 952 566 200 457 1,346 136 277 217 405 2,774 688 1,078 46 1,229 1,515 491 219 138 722 189 421 290 4,272 700 763 241 229 94 1,219 2,436 678 177 188 424 7,217

Average Cost ($)

The Allstate Corporation 20,737 The Boeing Company 71,110 The Charles Schwab Corporation 22,142 The Chubb Corporation 24,335 The Coca-Cola Company 187,031 The Dow Chemical Company 55,539 The Dun & Bradstreet Corporation 6,890 The Estee Lauder Companies Inc. Cl. A 18,901 The Gap, Inc. 10,019 The Goldman Sachs Group, Inc. 92,050 The Hartford Financial Services Group 10,898 The Home Depot, Inc. 85,290 The Interpublic Group of Companies, Inc. 8,198 The J.M. Smucker Company 8,292 The Kroger Co. 16,187 The McGraw-Hill Companies, Inc. 18,495 The Mosaic Company 26,560 The Procter & Gamble Company 265,159 The Progressive Corp. 18,616 The Southern Co. 52,144 The TJX Companies Inc. 28,378 The Travelers Companies, Inc. 28,455 The Walt Disney Company 99,119 The Williams Companies, Inc. 22,581 Thermo Electron Corp. 28,943 Tiffany & Co. 12,360 Time Warner Cable Inc. 28,766 Time Warner Inc. 47,036 Torchmark Corporation 6,268 Total System Services, Inc. 6,739 TripAdvisor Inc. 6,697 Tyson Foods, Inc. Cl. A 7,741 U.S. Bancorp 74,715 Union Pacific Corporation 63,225 United Parcel Service, Inc. Cl. B 77,286 United States Steel Corporation 2,004 United Technologies Corporation 92,191 UnitedHealth Group Incorporated 66,268 UnumProvident Corporation 9,808 Urban Outfitters, Inc. 6,722 V.F. Corp. 18,581 Valero Energy Corporation 18,352 Varian Medical Systems, Inc. 11,595 Ventas, Inc. 18,400 VeriSign, Inc. 10,635 Verizon Communications Inc. 158,533 Viacom Inc. Cl. B 24,115 Visa, Inc., Cl. A 72,951 Vornado Realty Trust 19,567 Vulcan Materials Co. 11,129 W.W. Grainger Inc. 16,609 Walgreen Co. 43,938 Wal-Mart Stores, Inc. 141,806 Waste Management, Inc. 24,732 Waters Corporation 14,379 Watson Pharmaceuticals, Inc. 11,513 WellPoint Inc. 25,240 Wells Fargo & Company 211,805

Fair % of Net Value ($) Assets

Number of Shares Security

Average Cost ($)

Fair % of Net Value ($) Assets

24,733 76,190 22,697 32,066 209,648 57,275 7,667 22,209 13,947 86,322 10,714 134,918 9,874 9,779 17,522 23,655 25,348 275,942 20,484 55,132 46,828 39,292 129,237 30,994 35,919 11,409 44,194 64,038 6,986 5,899 9,046 7,815 88,132 86,037 79,070 1,092 100,256 81,738 10,164 8,576 20,723 24,490 13,201 27,094 11,198 183,827 36,729 114,959 19,195 11,852 18,920 44,900 165,400 22,748 15,339 16,080 25,697 245,585

352 Western Digital Corporation 12,876 14,877 1,096 Western Union Company 20,198 14,838 793 Weyerhaeuser Company 18,170 21,952 157 Whirlpool Corporation 10,887 15,896 280 Whole Foods Market, Inc. 16,711 25,434 787 Windstream Corporation 8,804 6,497 344 Wisconsin Energy Corporation 10,064 12,606 246 WPX Energy Inc. 3,364 3,641 134 Wyndham Worldwide Corporation 3,376 7,091 130 Wynn Resorts, Ltd. 13,945 14,535 632 Xcel Energy Incorporated 15,731 16,779 2,302 Xerox Corporation 19,763 15,616 488 Xilinx, Inc. 16,375 17,421 305 Xylem, Inc. 7,949 8,216 1,608 Yahoo! Inc. 25,717 31,814 693 Yum! Brands, Inc. 35,639 45,785 295 Zimmer Holdings, Inc. 15,700 19,552 300 Zions Bancorporation 5,791 6,389 16,629,359 18,712,530 Total Equities 54,201,767 57,511,977

9.8 30.0

Par Value ($)



Fixed Income (69.4%)

1,101,000 1,093,000 963,000 2,623,000 475,000 1,035,000 1,055,000 4,692,000 1,164,000 925,000 300,000 1,963,000 1,005,000 225,000 1,553,000 721,000 580,000

Issued or Guaranteed by Canadian Federal Government Canada Housing Trust No 1 1.70% Dec 15/17 1,099,988 1,101,052 Canada Housing Trust No 1 1.85% Dec 15/16 1,106,507 1,104,694 Canada Housing Trust No 1 2.05% Jun 15/17 970,784 980,078 Canada Housing Trust No 1 2.20% Mar 15/14 2,667,893 2,655,343 Canada Housing Trust No 1 2.40% Dec 15/22 476,818 477,512 Canada Housing Trust No 1 2.45% Dec 15/15 1,050,932 1,066,512 Canada Housing Trust No 1 2.65% Mar 15/22 1,064,345 1,088,283 Canada Housing Trust No 1 2.75% Sep 15/14 4,821,938 4,813,563 Canada Housing Trust No 1 2.75% Dec 15/15 1,197,991 1,209,489 Canada Housing Trust No 1 2.75% Jun 15/16 928,375 964,086 Canada Housing Trust No 1 2.95% Mar 15/15 298,928 310,937 Canada Housing Trust No 1 3.15% Jun 15/14 2,039,259 2,018,361 Canada Housing Trust No 1 3.15% Jun 15/15 1,049,105 1,049,849 Canada Housing Trust No 1 3.35% Dec 15/20 223,212 245,367 Canada Housing Trust No 1 3.55% Sep 15/13 1,604,634 1,579,240 Canada Housing Trust No 1 3.75% Mar 15/20 764,184 804,791 Canada Housing Trust No 1 3.80% Jun 15/21 601,935 652,568 ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

705,000 Canada Housing Trust No 1 4.10% Dec 15/18 600,000 Government of Canada 1.00% Nov 01/14 9,000 Government of Canada 1.00% Feb 01/15 642,000 Government of Canada 1.50% Aug 01/15 39,000 Government of Canada 1.50% Mar 01/17 1,535,000 Government of Canada 1.50% Sep 01/17 2,166,000 Government of Canada 1.50% Jun 01/23 1,313,000 Government of Canada 2.00% Dec 01/14 400,000 Government of Canada 2.25% Aug 01/14 1,091,000 Government of Canada 2.50% Jun 01/15 730,000 Government of Canada 2.75% Sep 01/16 765,000 Government of Canada 2.75% Jun 01/22 502,000 Government of Canada 3.00% Dec 01/15 1,724,000 Government of Canada 3.25% Jun 01/21 1,674,000 Government of Canada 3.50% Jun 01/20 612,000 Government of Canada 3.50% Dec 01/45 1,835,000 Government of Canada 3.75% Jun 01/19 2,408,000 Government of Canada 4.00% Jun 01/16 1,822,000 Government of Canada 4.00% Jun 01/17 1,282,000 Government of Canada 4.00% Jun 01/41 1,069,000 Government of Canada 4.25% Jun 01/18 1,463,000 Government of Canada 4.50% Jun 01/15 700,000 Government of Canada 5.00% Jun 01/14 913,000 Government of Canada 5.00% Jun 01/37 747,000 Government of Canada 5.75% Jun 01/29 1,951,000 Government of Canada 5.75% Jun 01/33 27,000 Government of Canada 8.00% Jun 01/23 107,000 Government of Canada 8.00% Jun 01/27 16,000 Government of Canada 9.25% Jun 01/22

Average Cost ($)

Fair % of Net Value ($) Assets

749,945

794,626

598,620

598,505

8,882

8,974

647,869

646,614

39,569

39,221

1,542,120

1,543,118

2,098,885

2,084,435

1,332,202

1,334,071

408,828

406,971

1,127,883

1,125,590

773,987

766,903

830,455

827,711

528,900

527,102

1,924,435

1,932,030

1,869,961

1,891,739

755,027

771,115

2,080,215

2,080,296

2,637,802

2,624,529

2,054,558

2,026,577

1,701,984

1,713,706

1,234,526

1,225,010

1,610,085

1,578,800

774,935

737,805

1,317,748

1,351,025

1,106,436

1,109,894

2,857,148

3,029,649

39,746

42,620

165,915

184,949

26,767 26,354 54,812,261 55,151,664

ING DIRECT Annual Financial Statements December 31, 2012

28.8

Par Value ($) Security

57,000 200,000 40,000 50,000 53,000 24,000 12,000 70,000 30,000 137,000 30,000 80,000 40,000 113,000 50,000 25,000 40,000 45,000 45,000 158,000 330,000 100,000 311,000 79,000 103,000 40,000 40,000 21,000 2,000 54,000 99,000 33,000 133,000 140,000 42,000 111,000 59,000 90,000 56,000 243,000 204,000 200,000 335,000 365,000

Average Cost ($)

Fair % of Net Value ($) Assets

Issued or Guaranteed by Canadian Provincial Government Alberta Capital Finance Authority 3.05% Jun 15/15 58,919 59,336 Alberta Capital Finance Authority 4.35% Jun 15/16 222,305 218,630 Hydro One Inc. 2.95% Sep 11/15 39,832 41,276 Hydro One Inc. 3.13% Nov 19/14 51,120 51,433 Hydro One Inc. 3.20% Jan 13/22 53,383 54,748 Hydro One Inc. 3.79% Jul 31/62 23,930 23,767 Hydro One Inc. 4.00% Dec 22/51 12,002 12,398 Hydro One Inc. 4.39% Sep 26/41 73,980 76,955 Hydro One Inc. 4.40% Jun 01/20 31,020 33,766 Hydro One Inc. 4.64% Mar 03/16 135,601 148,693 Hydro One Inc. 4.89% Mar 13/37 29,130 35,081 Hydro One Inc. 5.00% Oct 19/46 91,232 97,895 Hydro One Inc. 5.18% Oct 18/17 43,571 45,538 Hydro One Inc. 5.36% May 20/36 132,640 139,484 Hydro One Inc. 5.49% Jul 16/40 51,409 64,105 Hydro One Inc. 6.03% Mar 03/39 28,442 34,106 Hydro One Inc. 6.35% Jan 31/34 47,322 54,565 Hydro One Inc. 6.93% Jun 01/32 58,072 64,096 Hydro One Inc. 7.35% Jun 03/30 58,888 65,213 Hydro-Quebec 5.00% Feb 15/45 178,905 202,978 Hydro-Quebec 5.00% Feb 15/50 401,924 433,515 Hydro-Quebec 6.00% Feb 15/40 137,459 141,903 Hydro-Quebec 6.50% Feb 15/35 446,110 448,655 Hydro-Quebec 9.63% Jul 15/22 124,037 123,077 Ontario Electricity Financial Corporation 8.25% Jun 22/26 160,534 160,000 Ontario Electricity Financial Corporation 8.50% May 26/25 57,500 62,018 Ontario Electricity Financial Corporation 10.00% Feb 06/20 58,073 59,617 Ontario Electricity Financial Corporation 10.13% Oct 15/21 33,114 33,216 Ontario Electricity Financial Corporation 10.75% Aug 06/21 3,237 3,231 Province of Alberta 1.70% Dec 15/17 53,787 53,792 Province of Alberta 1.75% Jun 15/17 99,056 99,178 Province of Alberta 1.85% Sep 01/16 32,956 33,345 Province of Alberta 2.55% Dec 15/22 132,139 132,792 Province of Alberta 2.75% Dec 01/14 145,520 143,991 Province of Alberta 2.90% Sep 20/29 41,282 41,242 Province of Alberta 4.00% Dec 01/19 110,087 124,251 Province of Alberta 4.50% Dec 01/40 65,507 72,732 Province of British Columbia 2.70% Dec 18/22 89,979 90,349 Province of British Columbia 3.20% Jun 18/44 55,451 55,141 Province of British Columbia 3.25% Dec 18/21 247,050 257,317 Province of British Columbia 3.70% Dec 18/20 205,226 223,756 Province of British Columbia 4.10% Dec 18/19 199,960 224,353 Province of British Columbia 4.25% Jun 18/14 354,800 349,533 Province of British Columbia 4.30% Jun 18/42 395,805 432,817 21

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

150,000 206,000 137,000 226,000 135,000 44,000 385,000 13,000 35,000 23,000 28,000 57,000 24,000 30,000 23,000 59,000 76,000 11,000 24,000 190,000 100,000 175,000 45,000 40,000 65,000 200,000 13,000 50,000 65,000 30,000 22

Province of British Columbia 4.65% Dec 18/18 Province of British Columbia 4.70% Dec 01/17 Province of British Columbia 4.70% Jun 18/37 Province of British Columbia 4.95% Jun 18/40 Province of British Columbia 5.30% Jun 17/19 Province of British Columbia 5.40% Jun 18/35 Province of British Columbia 5.70% Jun 18/29 Province of British Columbia 6.15% Nov 19/27 Province of British Columbia 6.35% Jun 18/31 Province of British Columbia 9.95% May 15/21 Province of Manitoba 1.85% Jun 01/17 Province of Manitoba 2.05% Dec 01/16 Province of Manitoba 3.05% Sep 01/14 Province of Manitoba 3.35% Mar 05/43 Province of Manitoba 3.85% Dec 01/21 Province of Manitoba 4.10% Mar 05/41 Province of Manitoba 4.15% Jun 03/20 Province of Manitoba 4.40% Sep 05/25 Province of Manitoba 4.40% Mar 05/42 Province of Manitoba 4.60% Mar 05/38 Province of Manitoba 4.65% Mar 05/40 Province of Manitoba 4.70% Sep 22/17 Province of Manitoba 4.75% Feb 11/20 Province of Manitoba 4.80% Dec 03/14 Province of Manitoba 5.70% Mar 05/37 Province of Manitoba 7.75% Dec 22/25 Province of Manitoba 10.50% Mar 05/31 Province of New Brunswick 2.85% Jun 02/23 Province of New Brunswick 3.35% Dec 03/21 Province of New Brunswick 3.55% Jun 03/43

Average Cost ($)

Fair % of Net Value ($) Assets

161,645

172,283

218,170

234,313

160,241

167,722

258,956

290,902

160,387

159,990

56,803

58,266

479,232

511,348

18,038

17,742

43,778

50,011

35,123

35,837

27,945

28,122

57,080

57,856

24,853

24,702

29,850

30,170

25,109

25,323

55,980

67,057

80,740

85,286

10,960

12,557

23,937

28,693

206,909

228,810

103,851

122,438

183,617

197,619

51,290

52,088

43,200

42,635

77,619

89,656

294,999

299,266

25,453

25,756

49,811

49,795

65,846

68,424

29,900

30,361

Par Value ($) Security

16,000 85,000 75,000 165,000 190,000 195,000 90,000 7,000 70,000 116,000 80,000 75,000 50,000 28,000 50,000 31,000 80,000 13,000 104,000 74,000 89,000 88,000 45,000 130,000 50,000 35,000 60,000 402,000 296,000 286,000

Average Cost ($)

Province of New Brunswick 3.55% Jun 03/55 Province of New Brunswick 4.40% Jun 03/19 Province of New Brunswick 4.45% Mar 26/18 Province of New Brunswick 4.50% Feb 04/15 Province of New Brunswick 4.50% Jun 02/20 Province of New Brunswick 4.55% Mar 26/37 Province of New Brunswick 4.65% Sep 26/35 Province of New Brunswick 4.70% Jul 21/16 Province of New Brunswick 4.80% Sep 26/39 Province of New Brunswick 4.80% Jun 03/41 Province of New Brunswick 5.65% Dec 27/28 Province of Newfoundland 4.50% Apr 17/37 Province of Newfoundland 4.65% Oct 17/40 Province of Newfoundland 5.25% Jun 04/14 Province of Newfoundland 5.60% Oct 17/33 Province of Newfoundland 5.70% Oct 17/35 Province of Newfoundland 6.55% Oct 17/30 Province of Newfoundland 10.95% Apr 15/21 Province of Nova Scotia 3.50% Jun 02/62 Province of Nova Scotia 4.10% Jun 01/21 Province of Nova Scotia 4.15% Nov 25/19 Province of Nova Scotia 4.40% Jun 01/42 Province of Nova Scotia 4.50% Jun 01/37 Province of Nova Scotia 4.70% Jun 01/41 Province of Nova Scotia 5.80% Jun 01/33 Province of Nova Scotia 6.60% Jun 01/27 Province of Nova Scotia 6.60% Dec 01/31 Province of Ontario 1.90% Sep 08/17 Province of Ontario 2.85% Jun 02/23 Province of Ontario 3.15% Sep 08/15

Fair % of Net Value ($) Assets

16,280

16,087

91,461

95,826

79,530

84,074

176,338

175,652

202,278

216,517

190,202

226,238

103,540

105,429

7,644

7,728

71,473

85,007

131,929

142,638

103,168

102,821

74,963

88,321

50,997

61,268

30,217

29,561

65,186

66,565

42,337

42,149

111,334

115,087

20,704

21,072

103,429

106,061

76,178

82,474

89,817

99,336

93,732

103,511

44,593

52,437

143,716

159,155

62,250

67,356

49,084

48,676

86,881

86,843

401,763

402,507

295,722

295,674

298,115

298,669

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

1,619,000 235,000 857,000 914,000 1,151,000 536,000 940,000 834,000 401,000 698,000 230,000 562,000 941,000 681,000 460,000 530,000 400,000 115,000 438,000 1,060,000 120,000 112,000 9,000 19,000 15,000 20,000 80,000 186,000 815,000 555,000 773,000 550,000

Average Cost ($)

Province of Ontario 3.15% Jun 02/22 1,634,974 Province of Ontario 3.20% Sep 08/16 246,559 Province of Ontario 3.25% Sep 08/14 894,020 Province of Ontario 3.50% Jun 02/43 926,673 Province of Ontario 4.00% Jun 02/21 1,213,452 Province of Ontario 4.20% Mar 08/18 578,003 Province of Ontario 4.20% Jun 02/20 954,211 Province of Ontario 4.30% Mar 08/17 908,195 Province of Ontario 4.40% Mar 08/16 437,838 Province of Ontario 4.40% Jun 02/19 750,360 Province of Ontario 4.50% Mar 08/15 251,659 Province of Ontario 4.60% Jun 02/39 610,937 Province of Ontario 4.65% Jun 02/41 1,020,660 Province of Ontario 4.70% Jun 02/37 742,855 Province of Ontario 5.00% Mar 08/14 502,900 Province of Ontario 5.60% Jun 02/35 642,748 Province of Ontario 5.85% Mar 08/33 499,478 Province of Ontario 6.20% Jun 02/31 145,763 Province of Ontario 6.50% Mar 08/29 576,963 Province of Ontario 7.60% Jun 02/27 1,590,152 Province of Ontario 8.10% Sep 08/23 174,136 Province of Ontario 9.50% Jul 13/22 176,310 Province of Prince Edward Island 3.20% Jun 02/14 9,321 Province of Prince Edward Island 3.65% Jun 27/42 18,947 Province of Prince Edward Island 3.70% Sep 02/20 14,807 Province of Prince Edward Island 4.60% May 19/41 20,358 Province of Prince Edward Island 4.65% Nov 19/37 94,376 Province of Quebec 3.00% Sep 01/23 185,770 Province of Quebec 3.50% Dec 01/22 845,838 Province of Quebec 4.25% Dec 01/21 575,371 Province of Quebec 4.25% Dec 01/43 854,010 Province of Quebec 4.50% Dec 01/16 611,061

ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

1,675,167 247,601 884,726 934,960 1,273,679 594,483 1,053,590 917,943 435,969 787,660 245,388 673,903 1,152,995 820,867 480,179 708,260 543,300 159,892 617,446 1,600,689 176,769 174,091 9,234 19,212 16,179 23,567 93,505 186,323 858,425 620,857 879,625 606,768

Par Value ($) Security

Average Cost ($)

Fair % of Net Value ($) Assets

468,000 Province of Quebec 4.50% Dec 01/17 503,817 523,860 388,000 Province of Quebec 4.50% Dec 01/18 424,505 438,028 613,000 Province of Quebec 4.50% Dec 01/19 650,079 695,464 913,000 Province of Quebec 4.50% Dec 01/20 962,422 1,039,052 250,000 Province of Quebec 5.00% Dec 01/15 276,260 274,528 434,000 Province of Quebec 5.00% Dec 01/38 490,513 537,131 705,000 Province of Quebec 5.00% Dec 01/41 769,382 890,070 62,000 Province of Quebec 5.35% Jun 01/25 68,665 75,407 150,000 Province of Quebec 5.50% Dec 01/14 169,170 161,759 380,000 Province of Quebec 5.75% Dec 01/36 476,919 511,630 390,000 Province of Quebec 6.00% Oct 01/29 505,771 520,207 275,000 Province of Quebec 6.25% Jun 01/32 350,840 381,135 58,000 Province of Saskatchewan 3.40% Feb 03/42 58,974 60,032 70,000 Province of Saskatchewan 3.90% Jul 28/20 71,120 78,062 71,000 Province of Saskatchewan 4.75% Jun 01/40 74,477 90,154 40,000 Province of Saskatchewan 5.00% Mar 05/37 50,355 51,550 28,000 Province of Saskatchewan 5.25% Jun 03/14 30,280 29,572 150,000 Province of Saskatchewan 5.60% Sep 05/35 169,866 206,231 39,000 Province of Saskatchewan 5.75% Mar 05/29 51,043 52,386 47,000 Province of Saskatchewan 6.40% Sep 05/31 62,305 68,341 36,373,947 38,231,502 10,000 18,000 50,000 16,000 35,000 81,000 50,000 33,000 6,000 76,000 33,000 35,000 39,000 44,000 49,000 41,000 68,000 11,000 78,000 10,000 8,000 20,000 15,000 5,000 7,000 7,000 15,000

20.0

Issued or Guaranteed by Canadian Municipal Government City of Edmonton 8.50% Sep 14/18 13,492 13,194 City of Montreal 4.25% Dec 01/32 18,118 18,512 City of Montreal 4.50% Dec 01/21 51,286 54,786 City of Montreal 4.95% Dec 10/14 17,242 17,011 City of Montreal 5.00% Dec 01/18 37,510 39,548 City of Montreal 5.45% Dec 01/19 94,340 93,868 City of Montreal 6.00% Jun 01/43 66,473 67,950 City of Ottawa 4.60% Jul 14/42 34,899 37,492 City of Ottawa 5.05% Aug 13/30 6,957 7,011 City of Toronto 3.50% Dec 06/21 76,895 78,882 City of Toronto 3.80% Dec 13/42 32,888 32,862 City of Toronto 4.50% Dec 02/19 35,875 39,052 City of Toronto 4.55% May 20/15 42,130 41,637 City of Toronto 4.70% Jun 10/41 44,418 50,433 City of Toronto 4.85% Jul 28/16 54,352 53,935 City of Toronto 4.95% Jun 27/18 46,469 46,487 City of Toronto 5.05% Jul 18/17 75,176 76,563 City of Toronto 5.13% Sep 25/13 11,610 11,297 City of Toronto 5.20% Jun 01/40 90,911 95,726 City of Vancouver 3.45% Dec 02/21 9,986 10,369 City of Vancouver 3.70% Oct 18/52 7,945 7,892 City of Vancouver 4.50% Jun 01/20 20,749 22,386 City of Winnipeg 5.20% Jul 17/36 17,658 17,991 City of Winnipeg 5.90% Feb 02/29 6,285 6,376 City of Winnipeg 6.25% Nov 17/17 8,376 8,291 Regional Municipality of Halton 4.05% Oct 11/41 6,966 7,268 Regional Municipality of Peel 3.50% Dec 01/21 14,936 15,606 23

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

Average Cost ($)

32,000 Regional Municipality of Peel 3.85% Oct 30/42 31,820 36,000 Regional Municipality of Peel 5.10% Jun 29/40 36,551 43,000 Regional Municipality of York 4.00% Jun 30/21 43,851 28,000 Regional Municipality of York 4.00% May 31/32 28,317 19,000 Regional Municipality of York 4.50% Jun 30/20 20,525 46,000 Regional Municipality of York 5.00% Apr 29/19 52,286 1,157,292 Other 42,000 407 East Development Group General Partnership 2.81% Dec 23/15 42,000 12,000 407 East Development Group General Partnership 4.47% Jun 23/45 12,000 25,000 407 International Inc. 3.87% Nov 24/17 24,993 56,000 407 International Inc. 3.88% Jun 16/15 59,085 20,000 407 International Inc. 3.98% Sep 11/52 19,972 39,000 407 International Inc. 4.19% Apr 25/42 38,947 75,000 407 International Inc. 4.30% May 26/21 81,307 43,000 407 International Inc. 4.45% Nov 15/41 44,775 131,000 407 International Inc. 4.99% Jun 16/20 149,455 50,000 407 International Inc. 5.75% Feb 14/36 51,777 50,000 407 International Inc. 5.96% Dec 03/35 61,740 60,000 407 International Inc. 6.47% Jul 27/29 66,066 25,000 Aeroports de Montreal 3.92% Sep 26/42 25,000 45,000 Aeroports de Montreal 5.17% Sep 17/35 44,795 75,000 Aeroports de Montreal 5.67% Oct 16/37 61,572 50,000 AGT Limited 8.80% Sep 22/25 73,790 28,000 Aimia Inc 4.35% Jan 22/18 27,939 19,000 Aimia Inc 5.60% May 17/19 18,986 55,000 Algonquin Power Co 4.82% Feb 15/21 54,967 55,000 Alimentation Couche-Tard Inc. 2.86% Nov 01/17 55,000 85,000 Alimentation Couche-Tard Inc. 3.32% Nov 01/19 84,999 35,000 Alliance Pipeline LP 4.93% Dec 16/19 38,164 55,000 AltaGas Ltd. 3.72% Sep 28/21 54,984 31,000 AltaGas Ltd. 4.07% Jun 01/20 31,675 25,000 AltaGas Ltd. 4.10% Mar 24/16 24,991 24,000 AltaGas Ltd. 4.55% Jan 17/19 24,799 10,000 AltaGas Ltd. 4.60% Jan 15/18 9,993 50,000 AltaGas Ltd. 5.49% Mar 27/17 54,246 30,000 AltaLink LP 2.98% Nov 28/22 30,000 19,000 AltaLink LP 3.99% Jun 30/42 19,000 53,000 AltaLink LP 4.46% Nov 08/41 57,373 10,000 AltaLink LP 4.87% Nov 15/40 10,000 75,000 AltaLink LP 5.24% May 29/18 80,168 14,000 AltaLink LP 5.25% Sep 22/36 16,699 5,000 AltaLink LP 5.38% Mar 26/40 5,000 115,000 American Express Canada Credit Corp. 3.60% Jun 03/16 116,445 24

Fair % of Net Value ($) Assets

32,348 43,848 46,375 28,820 21,217 52,379 1,197,412

42,661 12,318 26,650 58,804 20,273 41,064 83,453 47,193 151,984 61,668 66,245 80,488 25,214 53,827 96,385 75,759 27,902 19,923 55,081 55,169 85,481 38,401 56,287 32,619 26,188 25,964 10,810 55,476 29,959 19,470 58,456 11,708 85,927 16,987 6,265 120,177

0.6

Par Value ($) Security

25,000 38,000 22,000 255,000 102,000 100,000 242,000 29,000 146,000 125,000 127,000 35,000 135,000 35,000 30,000 50,000 70,000 82,000 180,000 100,000 44,000 41,000 15,000 25,000 50,000 50,000 35,000 50,000 100,000 40,000 254,000 80,000 50,000 175,000 8,000 80,000 156,000 29,000 30,000 30,000 65,000 185,000 40,000 25,000 25,000 50,000 20,000 75,000

Average Cost ($)

American Express Canada Credit Corp. 4.85% Oct 03/14 25,263 Aon Finance NS 1 ULC 4.76% Mar 08/18 37,982 Arrow Lakes Power 5.52% Apr 05/41 22,000 Bank of Montreal 1.89% Oct 05/15 254,992 Bank of Montreal 2.24% Dec 11/17 101,976 Bank of Montreal 2.39% Jul 12/17 100,000 Bank of Montreal 2.96% Aug 02/16 244,259 Bank of Montreal 3.10% Mar 10/16 29,000 Bank of Montreal 3.49% Jun 10/16 148,153 Bank of Montreal 3.93% Apr 27/15 126,950 Bank of Montreal 3.98% Jul 08/21 128,198 Bank of Montreal 4.55% Aug 01/17 36,516 Bank of Montreal 4.61% Sep 10/25 146,485 Bank of Montreal 4.78% Apr 30/14 37,145 Bank of Montreal 4.87% Apr 22/15-20 32,598 Bank of Montreal 5.10% Apr 21/21 53,525 Bank of Montreal 5.18% Jun 10/15 75,726 Bank of Montreal 5.45% Jul 17/17 87,722 Bank of Montreal 6.02% May 02/18 208,040 Bank of Montreal 6.17% Mar 28/23 112,481 bcIMC Realty Corporation 2.65% Jun 29/17 43,992 bcIMC Realty Corporation 2.96% Mar 07/19 40,984 bcIMC Realty Corporation 3.51% Jun 29/22 14,996 Bell Aliant Regional Communications LP 4.37% Sep 13/17 25,488 Bell Aliant Regional Communications LP 4.88% Apr 26/18 52,347 Bell Aliant Regional Communications LP 5.41% Sep 26/16 54,314 Bell Aliant Regional Communications LP 6.17% Feb 26/37 34,475 Bell Aliant Regional Communications LP 6.29% Feb 17/15 49,980 Bell Canada 3.35% Jun 18/19 99,839 Bell Canada 3.60% Dec 02/15 39,933 Bell Canada 3.65% May 19/16 263,063 Bell Canada 4.40% Mar 16/18 79,933 Bell Canada 4.64% Feb 22/16 52,333 Bell Canada 4.85% Jun 30/14 184,631 Bell Canada 4.95% May 19/21 7,971 Bell Canada 5.00% Feb 15/17 87,147 Bell Canada 6.10% Mar 16/35 171,490 Bell Canada 7.00% Sep 24/27 35,526 Bell Canada 7.30% Feb 23/32 34,043 Bell Canada 7.85% Apr 02/31 35,838 BMO Capital Trust 4.63% Dec 31/15 70,450 BMO Capital Trust 5.47% Dec 31/14 199,036 BMO Subordinated Notes Trust 5.75% Sep 26/22 44,062 BMW Canada Inc. 2.11% May 26/16 24,993 BMW Canada Inc. 2.39% Nov 27/17 24,999 BMW Canada Inc. 2.76% Apr 01/14 49,990 BMW Canada Inc. 2.88% Aug 09/16 19,998 BMW Canada Inc. 3.15% Apr 01/15 75,865

Fair % of Net Value ($) Assets

26,321 40,727 25,538 254,954 101,558 100,525 248,971 29,961 152,742 130,962 134,181 38,414 154,200 36,491 31,930 54,534 75,542 93,094 212,177 117,428 44,555 41,710 15,303 26,487 54,023 54,588 35,615 54,007 102,956 41,695 265,798 86,931 53,711 182,730 9,031 88,107 189,642 37,135 39,975 41,656 69,429 197,254 45,779 24,957 24,980 50,599 20,463 77,025

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

8,824 100,000 70,000 25,000 30,000 57,000 10,000 30,000 33,000 17,000 46,000 10,000 60,000 33,000 35,000 80,000 40,000 22,000 60,000 15,000 70,000 30,000 10,000 47,000 69,000 31,000 31,000 12,000 97,000 200,000 191,000 325,000

Average Cost ($)

Borealis Infrastructure Trust 6.35% Dec 01/20 9,867 British Columbia Ferry Services Inc. 5.02% Mar 20/37 111,447 British Columbia Ferry Services Inc. 5.74% May 27/14 76,174 British Columbia Ferry Services Inc. 6.25% Oct 13/34 30,205 Brookfield Asset Management Inc 3.95% Apr 09/19 29,998 Brookfield Asset Management Inc 4.54% Mar 31/23 56,970 Brookfield Asset Management Inc 5.30% Mar 01/21 9,995 Brookfield Asset Management Inc. 5.95% Jun 14/35 28,751 BRP Finance ULC 4.79% Feb 07/22 32,997 BRP Finance ULC 5.14% Oct 13/20 17,348 BRP Finance ULC 5.84% Nov 05/36 43,509 Business Development Bank of Canada 4.35% Feb 28/22 11,375 Cadillac Fairview Finance Trust 3.24% Jan 25/16 59,997 Cadillac Fairview Finance Trust 3.64% May 09/18 32,996 Cadillac Fairview Finance Trust 4.31% Jan 25/21 34,992 Caisse Centrale Desjardins du Quebec 2.28% Oct 17/16 80,000 Caisse Centrale Desjardins du Quebec 3.11% Dec 04/14 40,840 Caisse Centrale Desjardins du Quebec 3.50% Oct 05/17 22,000 Caisse Centrale Desjardins du Quebec 3.79% Jun 08/15 61,559 Calloway Real Estate Investment Trust 4.05% Jul 27/20 15,024 Cameco Corporation 3.75% Nov 14/22 69,994 Cameco Corporation 4.70% Sep 16/15 31,746 Cameco Corporation 5.67% Sep 02/19 10,042 Canada Post Corporation 4.08% Jul 16/25 51,038 Canada Post Corporation 4.36% Jul 16/40 84,331 Canada Safeway Limited 3.00% Mar 31/14 30,974 Canadian Credit Card Trust 2.31% Apr 24/15 31,000 Canadian Credit Card Trust 3.44% Jul 24/15 12,000 Canadian Imperial Bank of Commerce 2.20% May 22/15 96,880 Canadian Imperial Bank of Commerce 2.35% Oct 18/17 200,241 Canadian Imperial Bank of Commerce 2.65% Nov 08/16 191,394 Canadian Imperial Bank of Commerce 3.10% Mar 02/15 334,038

ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

10,041 112,736 73,783 32,410 30,748 58,708 11,050 29,873 34,883 18,539 45,941 11,682 62,398 35,240 39,201 80,270 41,011 23,111 62,696 15,117 69,559 31,872 11,493 54,717 86,637 31,160 31,382 12,483 97,861 200,216 194,352 333,926

Par Value ($) Security

100,000 50,000 125,000 343,000 100,000 45,000 125,000 50,000 50,000 30,000 9,000 120,000 75,000 25,000 25,000 20,000 20,000 10,000 12,000 10,000 28,000 45,000 15,000 140,000 25,000 23,000 21,000 18,000 111,000 17,000 17,000 12,000

Average Cost ($)

Canadian Imperial Bank of Commerce 3.15% Nov 02/20 98,630 Canadian Imperial Bank of Commerce 3.30% Nov 19/14 49,987 Canadian Imperial Bank of Commerce 3.40% Jan 14/16 124,826 Canadian Imperial Bank of Commerce 3.95% Jul 14/17 362,358 Canadian Imperial Bank of Commerce 4.11% Apr 30/20 103,025 Canadian Imperial Bank of Commerce 4.75% Dec 22/14 49,063 Canadian Imperial Bank of Commerce 4.95% Jan 23/14 132,847 Canadian Imperial Bank of Commerce 6.00% Jun 06/23 55,625 Canadian Natural Resources Ltd. 3.05% Jun 19/19 49,969 Canadian Natural Resources Ltd. 4.95% Jun 01/15 32,699 Canadian Pacific Railway Limited 5.10% Jan 14/22 8,975 Canadian Pacific Railway Limited 6.25% Jun 01/18 139,310 Canadian Tire Corporation, Limited 4.95% Jun 01/15 69,700 Canadian Tire Corporation, Limited 5.61% Sep 04/35 26,158 Canadian Tire Corporation, Limited 6.32% Feb 24/34 28,679 Canadian Utilities Limited 3.12% Nov 09/22 20,000 Canadian Western Bank 2.38% Sep 14/15 20,000 Canadian Western Bank 2.57% Nov 04/14 10,000 Canadian Western Bank 3.05% Jan 18/17 12,000 Canadian Western Bank 4.39% Nov 30/20 10,000 Capital City Link General Partnership 4.39% Mar 31/46 28,001 Capital Desjardins Inc. 3.80% Nov 23/20 45,000 Capital Desjardins Inc. 4.95% Dec 15/26 15,000 Capital Desjardins Inc. 5.19% May 05/20 151,852 Capital Desjardins Inc. 5.54% Jun 01/21 25,000 Capital Power LP 4.60% Dec 01/15 22,993 Capital Power LP 4.85% Feb 21/19 20,975 Capital Power LP 5.28% Nov 16/20 18,000 Cards II Trust 3.10% Sep 15/15 114,335 Caterpillar Financial Services Limited 2.20% Jun 01/15 16,998 Caterpillar Financial Services Limited 2.63% Jun 01/17 16,996 Caterpillar Financial Services Limited 2.64% Dec 03/13 11,998

Fair % of Net Value ($) Assets

102,711 51,479 130,075 367,621 104,852 47,612 129,543 58,655 50,614 32,116 10,134 139,268 79,942 26,461 28,622 20,023 20,128 10,104 12,246 10,450 28,892 46,844 16,955 159,612 27,564 23,743 21,506 18,575 114,711 17,141 17,219 12,126 25

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

10,000 7,000 12,000 4,000 130,000 16,000 15,000 50,000 20,000 68,000 8,000 47,000 55,000 27,000 20,000 25,000 25,000 100,000 51,000 40,000 19,000 52,000 30,000 3,000 22,000 23,000 30,000 75,000 75,000 29,000 45,000 42,000 30,000 50,000 41,000 6,000 55,000 10,000 4,000 40,000 40,000 19,000 100,000 16,000 20,000 26

Average Cost ($)

CDP Financial Inc. 4.60% Jul 15/20 9,979 Centre Hospitalier de l’Universite de Montreal 4.45% Oct 01/49 7,000 Chip Mortgage Trust 3.97% Feb 01/16 12,000 Chip Mortgage Trust 4.49% Aug 04/15 3,999 CIBC Capital Trust 9.98% Jun 30/2108 159,777 Cogeco Cable Inc. 4.93% Feb 14/22 16,006 Cogeco Cable Inc. 5.15% Nov 16/20 14,971 CU Inc. 3.81% Sep 10/42 50,000 CU Inc. 3.83% Sep 11/62 20,000 CU Inc. 4.54% Oct 24/41 72,330 CU Inc. 4.59% Oct 24/61 8,000 CU Inc. 4.95% Nov 18/50 46,088 CU Inc. 5.56% May 26/28 55,931 CU Inc. 5.56% Oct 30/37 29,299 CU Inc. 5.58% May 26/38 22,504 CU Inc. 6.15% Nov 22/17 29,473 CU Inc. 6.50% Mar 07/39 30,727 CU Inc. 6.80% Aug 13/19 125,657 CU Inc. 9.92% Apr 01/22 79,450 Daimler Canada Finance Inc. 2.33% Sep 14/15 39,999 Daimler Canada Finance Inc. 3.02% Jan 07/15 18,999 Daimler Canada Finance Inc. 3.16% Apr 14/14 51,994 Daimler Canada Finance Inc. 3.28% Sep 15/16 30,000 Durham District School Board 6.75% Nov 19/19 3,505 Emera Inc. 2.96% Dec 13/16 22,184 Emera Inc. 4.10% Oct 20/14 23,889 Emera Inc. 4.83% Dec 02/19 30,676 Enbridge Gas Distribution Inc. 4.04% Nov 23/20 79,524 Enbridge Gas Distribution Inc. 4.77% Dec 17/21 68,183 Enbridge Gas Distribution Inc. 4.95% Nov 22/50 31,391 Enbridge Gas Distribution Inc. 5.16% Dec 04/17 48,848 Enbridge Gas Distribution Inc. 5.21% Feb 25/36 44,321 Enbridge Gas Distribtuion Inc. 6.90% Nov 15/32 36,644 Enbridge Inc. 3.19% Dec 05/22 49,965 Enbridge Inc. 4.24% Aug 27/42 40,972 Enbridge Inc. 4.26% Feb 01/21 5,997 Enbridge Inc. 4.53% Mar 09/20 55,742 Enbridge Inc. 4.77% Sep 02/19 9,995 Enbridge Inc. 5.12% Sep 28/40 4,000 Enbridge Inc. 5.17% May 19/16 44,500 Enbridge Inc. 5.75% Sep 02/39 41,809 Enbridge Inc. 7.20% Jun 18/32 25,756 Enbridge Inc. 7.22% Jul 24/30 131,918 Enbridge Income Fund Holdings Inc. 4.10% Feb 22/19 15,969 Enbridge Income Fund Holdings Inc. 4.85% Feb 22/22 19,975

Fair % of Net Value ($) Assets

11,333 7,485 12,421 4,201 173,255 16,493 15,904 49,857 19,856 76,972 9,296 57,444 67,768 34,356 25,688 29,524 35,862 126,001 78,485 40,200 19,369 52,856 30,971 3,748 22,377 23,825 33,084 82,377 86,367 35,300 51,236 50,793 42,532 49,622 41,524 6,541 60,902 11,215 4,612 43,946 49,957 26,579 137,865 16,725 21,514

Par Value ($) Security

120,000 50,000 30,000 20,000 60,000 75,000 50,000 50,000 14,000 25,000 12,000 17,000 49,000 40,000 80,000 32,000 50,000 35,000 110,000 25,000 294,000 164,000 125,000 260,000 151,000 85,000 100,000 15,000 25,000 15,000

Enbridge Pipelines Inc. 4.45% Apr 06/20 Enbridge Pipelines Inc. 4.49% Nov 12/19 Enbridge Pipelines Inc. 5.33% Apr 06/40 Enbridge Pipelines Inc. 5.35% Nov 10/39 Enbridge Pipelines Inc. 6.35% Nov 17/23 Enbridge Pipelines Inc. 6.62% Nov 19/18 Enbridge Pipelines Inc. 8.20% Feb 15/24 EnCana Corporation 5.80% Jan 18/18 EnerCare Solutions Inc. 4.30% Nov 30/17 EnerCare Solutions Inc. 6.75% Apr 30/14 Enersource Corporation 4.52% Apr 29/21 Enersource Corporation 5.30% Apr 29/41 EPCOR Utilities Inc. 4.55% Feb 28/42 EPCOR Utilities Inc. 5.75% Nov 24/39 EPCOR Utilities Inc. 5.80% Jan 31/18 EPCOR Utilities Inc. 6.65% Apr 15/38 EPCOR Utilities Inc. 6.75% Mar 22/16 Export Development Canada 4.30% Jun 01/16 Fairfax Financial Holdings Limited 5.84% Oct 14/22 Farm Credit Canada 4.55% Apr 12/21 Financement-Quebec 2.40% Dec 01/18 Financement-Quebec 2.45% Dec 01/19 Financement-Quebec 3.25% Jun 01/14 Financement-Quebec 3.50% Dec 01/16 Financement-Quebec 3.50% Dec 01/17 Financement-Quebec 4.25% Dec 01/15 Financement-Quebec 5.25% Jun 01/34 Finning International Inc. 5.08% Jun 13/42 Finning International Inc. 5.16% Sep 03/13 First Capital Realty, Inc. 4.43% Jan 31/22

Average Cost ($)

Fair % of Net Value ($) Assets

117,797

134,648

51,615

56,200

31,799

37,473

21,380

25,104

75,482

77,662

93,389

92,530

72,297

72,514

55,188

56,655

13,989

14,161

24,957

26,080

12,000

13,502

17,000

21,022

48,978

52,004

43,011

50,059

73,652

92,401

37,905

44,335

58,402

56,848

37,205

38,231

109,959

114,821

27,807

29,481

292,444

296,979

163,849

164,158

128,700

128,378

273,767

276,522

157,980

161,609

89,675

91,430

111,310

123,462

15,000

15,613

23,962

25,560

15,087

15,578

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

17,000 10,000 15,000 165,000 25,000 16,000 9,000 6,000 60,000 20,000 57,000 10,000 85,000 33,000 12,000 80,000 27,000 50,000 32,000 10,000 20,000 24,000 35,000 25,000 32,000 140,000 43,000 50,000 132,000 100,000 110,000 140,000 10,000 6,000 20,000 60,000 30,000

First Capital Realty, Inc. 4.50% Mar 01/21 First Capital Realty, Inc. 5.48% Jul 30/19 First Capital Realty, Inc. 5.85% Jan 31/17 Ford Credit Canada Ltd. 3.32% Dec 19/17 Fortis, Inc. 6.51% Jul 04/39 FortisAlberta, Inc. 3.98% Oct 23/52 FortisAlberta, Inc. 4.54% Oct 18/41 FortisAlberta, Inc. 4.80% Oct 27/50 FortisAlberta, Inc. 5.37% Oct 30/39 FortisAlberta, Inc. 7.06% Feb 14/39 FortisBC Energy Inc. 4.25% Dec 09/41 FortisBC Energy Inc. 5.20% Dec 06/40 FortisBC Energy Inc. 5.80% May 13/38 FortisBC Energy Inc. 6.00% Oct 02/37 FortisBC Inc. 5.00% Nov 24/50 FortisBC Inc. 6.10% Jun 02/39 Gaz Metro Inc. 5.45% Jul 12/21 Gaz Metro Inc. 5.70% Jul 10/36 Gaz Metro Inc. 9.00% May 16/25 Gaz Metropolitain Inc. 4.93% Jun 18/19 GE Capital Canada Funding Company 2.95% Feb 10/14 GE Capital Canada Funding Company 3.35% Nov 23/16 GE Capital Canada Funding Company 3.55% Jun 11/19 GE Capital Canada Funding Company 4.24% Jun 08/15 GE Capital Canada Funding Company 4.40% Feb 08/18 GE Capital Canada Funding Company 4.55% Jan 17/17 GE Capital Canada Funding Company 4.60% Jan 26/22 GE Capital Canada Funding Company 4.65% Feb 11/15 GE Capital Canada Funding Company 5.10% Jun 01/16 GE Capital Canada Funding Company 5.53% Aug 17/17 GE Capital Canada Funding Company 5.68% Sep 10/19 GE Capital Canada Funding Company 5.73% Oct 22/37 Genworth MI Canada Inc. 4.59% Dec 15/15 Genworth MI Canada Inc. 5.68% Jun 15/20 George Weston Limited 7.10% Feb 05/32 Glacier Credit Card Trust 2.39% Oct 20/17 Glacier Credit Card Trust 2.81% May 20/17

Average Cost ($)

Fair % of Net Value ($) Assets

17,070

17,918

10,009

11,189

16,128

16,684

164,932 27,795 15,990 8,999 5,996 62,056 25,794 59,389 9,971 94,563 38,616 11,979 106,600 29,505 52,145 44,779

164,611 34,293 16,349 10,085 7,128 75,304 30,545 60,986 11,983 112,473 44,522 14,434 107,689 32,321 63,826 49,581

10,866

11,411

19,977

20,293

23,968

24,916

34,921

36,354

26,050

26,372

31,950

34,744

147,711

151,678

42,990

47,451

52,503

52,860

123,366

144,373

106,000

113,233

123,121

128,238

151,078

172,747

10,000

10,273

5,997

6,473

23,084

23,740

60,000

60,115

30,000

30,673

ING DIRECT Annual Financial Statements December 31, 2012

Par Value ($) Security

25,000 152,000 75,000 30,000 50,000 93,000 82,000 60,000 100,000 53,000 82,000 155,000 100,000 55,000 110,000 80,000 80,000 160,000 33,000 70,000 60,000 17,000 10,000 10,000 14,000 115,000 50,000 5,000 36,000 97,000

Glacier Credit Card Trust 3.16% Nov 20/15 Golden Credit Card Trust 3.51% May 15/16 Golden Credit Card Trust 3.82% May 15/15 Great West Lifeco Delaware Finance LP 7.13% Jun 26/68 Greater Toronto Airports Authority 3.04% Sep 21/22 Greater Toronto Airports Authority 4.53% Dec 02/41 Greater Toronto Airports Authority 4.85% Jun 01/17 Greater Toronto Airports Authority 5.00% Jun 01/15 Greater Toronto Airports Authority 5.26% Apr 17/18 Greater Toronto Airports Authority 5.30% Feb 25/41 Greater Toronto Airports Authority 5.63% Jun 07/40 Greater Toronto Airports Authority 5.96% Nov 20/19 Greater Toronto Airports Authority 6.47% Feb 02/34 Greater Toronto Airports Authority 6.98% Oct 15/32 Greater Toronto Airports Authority 7.05% Jun 12/30 Greater Toronto Airports Authority 7.10% Jun 04/31 Great-West Lifeco Delaware Finance LP II 5.69% Jun 21/67 Great-West Lifeco Inc. 4.65% Aug 13/20 Great-West Lifeco Inc. 6.00% Nov 16/39 Great-West Lifeco Inc. 6.14% Mar 21/18 Great-West Lifeco Inc. 6.67% Mar 21/33 H&R Real Estate Investment Trust 4.45% Mar 02/20 H&R Real Estate Investment Trust 4.78% Jul 27/16 Halifax International Airport Authority 4.89% Nov 15/50 Halifax International Airport Authority 5.50% Jul 19/41 Health Montreal Collective LP 6.72% Sep 30/49 Honda Canada Finance, Inc. 2.28% Dec 11/17 Hospital for Sick Children 5.22% Dec 16/49 Hospital Infrastructure 5.44% Jan 31/45 HSBC Bank Canada 2.57% Nov 23/15

Average Cost ($)

Fair % of Net Value ($) Assets

25,000

25,828

155,243

159,481

76,502

78,609

33,670

35,656

49,996

50,659

99,320

104,209

74,890

91,401

64,770

64,576

111,063

114,832

53,967

66,107

85,441

106,443

185,197

188,448

131,338

136,790

71,165

78,414

147,005

154,129

105,776

114,005

83,712

87,972

171,223

177,696

37,598

41,115

67,589

81,795

70,100

76,661

17,012

17,432

10,020

10,560

10,000

11,882

17,526

17,789

137,770

139,633

50,000

49,773

5,000

6,174

37,093 97,000

42,350 98,550 27

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

119,000 185,000 9,000 30,000 20,000 20,000 50,000 25,000 140,000 74,000 60,000 25,000 30,000 17,000 70,000 33,000 20,000 25,000 20,000 64,000 68,000 25,000 11,000 16,000 25,000 15,000 35,000 205,000 10,000 20,000 45,000 50,000 25,000 22,000 38,000 15,000 19,000 55,000 28

Average Cost ($)

HSBC Bank Canada 2.90% Jan 13/17 119,443 HSBC Bank Canada 3.56% Oct 04/17 189,658 HSBC Bank Canada 3.86% May 21/15 8,998 Husky Energy Inc. 3.75% Mar 12/15 31,357 Husky Energy Inc. 5.00% Mar 12/20 20,152 IGM Financial, Inc. 6.00% Dec 10/40 20,800 IGM Financial, Inc. 6.58%,Mar 07/18 57,669 IGM Financial, Inc. 7.11% Mar 07/33 29,085 IGM Financial, Inc. 7.35% Apr 08/19 148,686 Intact Financial Corporation 4.70% Aug 18/21 76,789 Intact Financial Corporation 5.16% Jun 16/42 62,399 Intact Financial Corporation 5.41% Sep 03/19 27,652 Intact Financial Corporation 6.40% Nov 23/39 32,074 Integrated Team Solutions SJHC Partnership 5.95% Nov 30/42 17,000 Inter-American Development Bank 4.40% Jan 26/26 78,371 Inter Pipeline Fund 3.78% May 30/22 32,999 Inter Pipeline Fund 3.84% Jul 30/18 20,000 Inter Pipeline Fund 4.97% Feb 02/21 25,000 John Deere Canada Funding Inc. 2.30% Jul 05/16 19,995 John Deere Credit Inc. 1.85% Jan 24/14 64,064 John Deere Credit Inc. 3.25% Apr 08/15 69,934 John Deere Credit Inc. 5.45% Sep 16/15 28,063 Kellogg Canada Inc. 2.10% May 22/14 10,997 Laurentian Bank of Canada 2.45% Feb 13/15 15,985 Laurentian Bank of Canada 3.13% Oct 19/22 24,999 Laurentian Bank of Canada 3.70% Nov 02/20 14,960 Loblaw Companies Limited 5.22% Jun 18/20 36,558 Loblaw Companies Limited 5.90% Jan 18/36 209,790 Loblaw Companies Limited 6.45% Mar 01/39 10,884 Loblaw Companies Limited 6.54% Feb 17/33 23,226 Loblaw Companies Limited 6.85% Mar 01/32 50,942 Loblaw Companies Limited 7.10% Jun 01/16 59,017 Lower Mattagami Energy LP 2.23% Oct 23/17 25,000 Lower Mattagami Energy LP 4.18% Apr 23/52 22,000 Lower Mattagami Energy LP 4.33% May 18/21 40,249 Lower Mattagami Energy LP 5.14% May 18/41 15,000 Manitoba Telecom Services Inc. 4.59% Oct 01/18 20,089 Manitoba Telecom Services Inc. 5.63% Dec 16/19 60,066

Fair % of Net Value ($) Assets

Par Value ($) Security

121,838 194,782 9,411 31,109 22,588 23,100 58,462 31,631 172,780

41,000 24,000 40,000 40,000 55,000 100,000 202,000 25,000 135,000 80,000 80,000 93,000 60,000 7,000 20,000 70,000 66,000 99,000 11,000 20,000 63,000 38,000 60,000 58,000 107,000 37,000 181,000 77,000 199,000 155,000 81,000

82,080 63,207 28,719 37,016 20,713 79,629 33,743 21,113 27,993 20,130 64,209 70,088 27,302 11,044 16,118 25,130 15,432 39,841 222,972 11,636 23,231 53,884 57,823 25,044 22,865 42,225 17,989 20,561 62,776

Average Cost ($)

Manitoba Telecom Services Inc. 6.65% May 11/16 Manufacturers Life Insurance Company 4.17% Jun 01/22 Manufacturers Life Insurance Company 4.21% Nov 18/21 Manulife Finance Delaware LP 4.45% Dec 15/26 Manulife Finance Delaware LP 5.06% Dec 15/41 Manulife Financial Capital Trust II 7.41% Dec 31/2108 Manulife Financial Corporation 4.08% Aug 20/15 Manulife Financial Corporation 4.90% Jun 02/14 Manulife Financial Corporation 5.16% Jun 26/15 Manulife Financial Corporation 5.51% Jun 26/18 Manulife Financial Corporation 7.77% Apr 08/19 Master Credit Card Trust 2.63% Jan 21/17 Master Credit Card Trust 3.50% May 21/16 McGill University Health Centre 5.36% Dec 31/43 Metro Inc. 4.98% Oct 15/15 Metro Inc. 5.97% Oct 15/35 Municipal Finance Authority of British Columbia 3.00% Jun 01/16 Municipal Finance Authority of British Columbia 3.10% Jun 01/14 Municipal Finance Authority of British Columbia 3.35% Jun 01/22 Municipal Finance Authority of British Columbia 4.15% Jun 01/21 Municipal Finance Authority of British Columbia 4.45% Jun 01/20 Municipal Finance Authority of British Columbia 4.60% Apr 23/18 Municipal Finance Authority of British Columbia 4.65% Apr 19/16 Municipal Finance Authority of British Columbia 4.80% Dec 01/17 Municipal Finance Authority of British Columbia 4.88% Jun 03/19 Municipal Finance Authority of British Columbia 4.95% Dec 01/27 National Bank of Canada 2.23% Jan 30/15 National Bank of Canada 2.69% Aug 21/17 National Bank of Canada 2.70% Dec 15/16 National Bank of Canada 3.15% Feb 11/15 National Bank of Canada 3.26% Apr 11/22

Fair % of Net Value ($) Assets

45,667

46,307

24,000

25,129

40,000

41,865

40,327

41,673

46,202

50,654

107,041

116,893

205,832

210,992

25,000

25,988

142,385

144,230

84,528

89,654

86,447

100,096

93,549

94,769

60,000

62,961

6,997 21,795 68,551

8,459 21,523 79,496

68,594

68,643

101,647

101,370

10,987

11,376

19,958

22,029

69,475

70,755

42,747

42,608

64,950

65,533

65,459

65,363

122,106

122,457

42,826

43,399

181,312

182,571

76,999

78,128

200,566

202,576

158,809

159,242

81,000

83,444

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

55,000 95,000 40,000 24,000 230,000 35,000 35,000 65,000 39,000 19,000 20,000 25,698 55,000 21,000 36,000 20,000 27,000 10,000 106,000 50,000 25,000 20,000 33,000 50,000 150,000 100,000 110,000 24,000 8,000 11,000 49,000 58,000 147,000 150,000 20,000

National Bank of Canada 3.58% Apr 26/16 National Bank of Canada 4.03% May 26/15 National Bank of Canada 4.70% Nov 02/20 NAV CANADA 4.40% Feb 18/21 NAV CANADA 5.30% Apr 17/19 NBC Asset Trust 7.45% Jun 30/20 Nova Scotia Power Inc. 4.15% Mar 06/42 Nova Scotia Power Inc. 5.61% Jun 15/40 Nova Scotia Power Inc. 5.67% Nov 14/35 Nova Scotia Power Inc. 5.95% Jul 27/39 OPB Finance Trust 3.89% Jul 04/42 Ornge Issuer Trust 5.73% Jun 11/34 Pembina Pipeline Corporation 3.77% Oct 24/22 Pembina Pipeline Corporation 4.89% Mar 29/21 Plenary Health Care Partnerships Humber LP 2.63% May 18/15 Plenary Health Care Partnerships Humber LP 4.82% Nov 30/44 Plenary Health Care Partnerships Humber LP 4.90% May 31/39 Plenary Health Hamilton LP 5.80% May 31/43 Plenary Properties LTAP LP 6.29% Jan 31/44 Power Corporation of Canada 8.57% Apr 22/39 Power Financial Corporation 6.90% Mar 11/33 Powerstream Inc. 3.96% Jul 30/42 PSP Capital Inc. 2.26% Feb 16/17 PSP Capital Inc. 2.94% Dec 03/15 PSP Capital Inc. 4.57% Dec 09/13 RBC Capital Trust 4.87% Dec 31/15 Reliance LP 4.57% Mar 15/17 RioCan Real Estate Investment Trust 3.72% Dec 13/21 RioCan Real Estate Investment Trust 3.85% Jun 28/19 RioCan Real Estate Investment Trust 4.50% Jan 21/16 Rogers Communications, Inc. 3.00% Jun 06/17 Rogers Communications, Inc. 4.00% Jun 06/22 Rogers Communications, Inc. 4.70% Sep 29/20 Rogers Communications, Inc. 5.34% Mar 22/21 Rogers Communications, Inc. 5.38% Nov 04/19

Average Cost ($)

Fair % of Net Value ($) Assets

55,000

57,538

98,770

99,791

42,840 24,000 264,715 40,899

42,763 27,026 268,423 43,861

34,970

35,843

83,964

82,371

42,519

48,703

22,358 19,986 29,209

24,999 20,312 29,208

54,991

55,433

22,452

23,190

36,000

36,160

20,000

21,704

27,000

29,452

10,000

11,736

126,227

138,596

49,962

75,790

28,530 20,000 32,991 49,979 153,614 103,190 109,999

32,333 20,143 33,363 51,673 154,447 107,659 110,857

24,058

23,925

8,027

8,213

11,008

11,606

48,961

49,968

57,768

60,442

150,623

162,113

156,262

171,727

19,986

22,851

ING DIRECT Annual Financial Statements December 31, 2012

Par Value ($) Security

25,000 77,000 83,000 65,000 87,000 205,000 122,000 210,000 79,000 215,000 108,000 25,000 250,000 15,000 110,000 280,000 80,000 60,000 272,000 79,000 600,000 35,000 150,000 60,000 156,906 80,000 75,000 120,000 65,000

Rogers Communications, Inc. 5.80% May 26/16 Rogers Communications, Inc. 6.11% Aug 25/40 Rogers Communications, Inc. 6.56% Mar 22/41 Rogers Communications, Inc. 6.68% Nov 04/39 Royal Bank of Canada 2.05% Jan 13/15 Royal Bank of Canada 2.36% Sep 21/17 Royal Bank of Canada 2.58% Apr 13/17 Royal Bank of Canada 2.68% Dec 08/16 Royal Bank of Canada 2.98% May 07/19 Royal Bank of Canada 2.99% Dec 06/24 Royal Bank of Canada 3.03% Jul 26/16 Royal Bank of Canada 3.18% Mar 16/15 Royal Bank of Canada 3.18% Nov 02/20 Royal Bank of Canada 3.27% Nov 10/14 Royal Bank of Canada 3.36% Jan 11/16 Royal Bank of Canada 3.66% Jan 25/17 Royal Bank of Canada 3.77% Mar 30/18 Royal Bank of Canada 4.35% Jun 15/20 Royal Bank of Canada 4.71% Dec 22/14 Royal Bank of Canada 4.93% Jul 16/25 Royal Bank of Canada 4.97% Jun 05/14 Royal Bank of Canada 5.00% Jan 20/14 Royal Bank of Canada 5.00% Jun 06/18 Royal Bank of Canada 5.95% Jun 18/14 Royal Office Finance LP 5.21% Nov 12/32 Scotiabank Capital Trust 5.65% Dec 31/56 Scotiabank Capital Trust 6.28% Jun 30/13 Shaw Communications, Inc. 5.50% Dec 07/20 Shaw Communications, Inc. 5.65% Oct 01/19

Average Cost ($)

Fair % of Net Value ($) Assets

24,942

27,797

78,484

90,377

92,370

103,239

70,694

81,836

86,947

87,535

205,000

205,518

121,983

123,668

210,819

213,958

79,000

80,934

215,000

216,124

107,956

111,366

24,991

25,805

251,322

257,146

14,998

15,457

109,814

114,348

290,286

295,657

79,990

85,998

61,828

63,296

290,977

287,686

84,215

92,656

644,563

629,255

37,406

36,294

147,122

152,102

65,310

63,432

181,104

186,139

89,159

96,996

81,211

76,654

127,897

134,105

66,611

73,075

29

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

40,000 25,000 75,000 140,000 50,000 20,000 15,000 3,000 11,000 21,000 22,000 64,348 25,000 38,000 51,000 35,000 107,000 55,000 70,000 35,000 130,000 105,000 80,000 70,000 54,000 185,000 125,000 90,000 60,000 61,000 135,000 34,000 30,000 30,000 55,000 24,000 382,000

30

Average Cost ($)

Shaw Communications, Inc. 5.70% Mar 02/17 44,140 Shaw Communications, Inc. 6.15% May 09/16 28,155 Shaw Communications, Inc. 6.50% Jun 02/14 82,725 Shaw Communications, Inc. 6.75% Nov 09/39 139,959 SNC-Lavalin Innisfree McGill Finance Inc. 6.63% Jun 30/44 60,040 Sobeys Inc. 5.79% Oct 06/36 20,125 Sobeys Inc. 6.06% Oct 29/35 14,324 Sobeys Inc. 6.64% Jun 07/40 2,998 South Coast British Columbia Transportation Authority 3.80% Nov 02/20 10,992 South Coast British Columbia Transportation Authority 3.85% Feb 09/52 21,161 South Coast British Columbia Transportation Authority 4.65% Jun 20/41 21,979 SP LP/SP1 LP 3.21% Jun 15/19 64,348 Sun Life Capital Trust II 5.86% Dec 31/2108 25,428 Sun Life Financial Inc. 4.38% Mar 02/22 37,992 Sun Life Financial Inc. 4.57% Aug 23/21 51,347 Sun Life Financial Inc. 4.80% Nov 23/35 36,171 Sun Life Financial Inc. 4.95% Jun 01/36 93,719 Sun Life Financial Inc. 5.40% May 29/42 49,999 Sun Life Financial Inc. 5.70% Jul 02/19 76,480 Suncor Energy, Inc. 5.39% Mar 26/37 34,830 Suncor Energy, Inc. 5.80% May 22/18 130,832 TD Capital Trust III 7.24% Dec 31/18 122,032 TD Capital Trust IV 6.63% Jun 30/2108 95,396 TD Capital Trust IV 10.00% Jun 30/2108 71,674 TELUS Corporation 3.35% Mar 15/23 53,937 TELUS Corporation 3.65% May 25/16 190,610 TELUS Corporation 4.95% May 15/14 129,626 TELUS Corporation 4.95% Mar 15/17 97,621 TELUS Corporation 5.05% Dec 04/19 60,650 TELUS Corporation 5.05% Jul 23/20 61,702 TELUS Corporation 5.95% Apr 15/15 149,401 TELUS Corporation 9.65% Apr 08/22 50,291 Teranet Holdings LP 3.53% Dec 16/15 30,059 Teranet Holdings LP 4.81% Dec 16/20 30,144 Teranet Holdings LP 5.75% Dec 17/40 57,051 Teranet Holdings LP 6.10% Jun 17/41 23,989 The Bank of Nova Scotia 2.25% May 08/15 383,861

Fair % of Net Value ($) Assets

44,352 27,708 79,435 155,456 63,403 21,084 16,256 3,528

11,760

21,240

25,247 64,879 27,364 39,815 55,376 36,655 113,140 54,697 80,905 40,641 150,581 130,257 98,180 102,034 53,933 193,749 130,283 99,272 68,256 69,563 146,926 49,794 31,031 33,362 62,146 28,477 385,812

Par Value ($) Security

568,000 81,000 155,000 185,000 200,000 75,000 170,000 395,000 197,000 300,000 40,000 40,000 290,000 40,000 245,000 85,000 65,000 125,000 178,000 71,000 65,000 40,000 120,000 4,000 20,000 40,000 50,000 20,000 70,000 34,000

The Bank of Nova Scotia 2.60% Feb 27/17 The Bank of Nova Scotia 2.74% Dec 01/16 The Bank of Nova Scotia 2.90% Aug 03/22 The Bank of Nova Scotia 3.04% Oct 18/24 The Bank of Nova Scotia 3.34% Mar 25/15 The Bank of Nova Scotia 3.35% Nov 18/14 The Bank of Nova Scotia 3.43% Jul 16/14 The Bank of Nova Scotia 3.61% Feb 22/16 The Bank of Nova Scotia 4.10% Jun 08/17 The Bank of Nova Scotia 4.94% Apr 15/19 The Bank of Nova Scotia 6.65% Jan 22/21 The Standard Life Assurance Company of Canada 3.94% Sep 21/22 The Toronto-Dominion Bank 2.95% Aug 02/16 The Toronto-Dominion Bank 3.37% Nov 02/20 The Toronto-Dominion Bank 4.78% Dec 14/2105 The Toronto-Dominion Bank 4.97% Oct 30/2104 The Toronto-Dominion Bank 5.48% Apr 02/20 The Toronto-Dominion Bank 5.76% Dec 18/2106 The Toronto-Dominion Bank 5.83% Jul 09/23 Thomson Reuters Corporation 4.35% Sep 30/20 Thomson Reuters Corporation 5.20% Dec 01/14 Thomson Reuters Corporation 5.70% Jul 15/15 Thomson Reuters Corporation 6.00% Mar 31/16 Tim Hortons, Inc. 4.20% Jun 01/17 Toronto Hydro Corporation 3.54% Nov 18/21 Toronto Hydro Corporation 4.49% Nov 12/19 Toronto Hydro Corporation 5.15% Nov 14/17 Toronto Hydro Corporation 5.54% May 21/40 Toyota Credit Canada Inc. 2.20% Oct 19/17 Toyota Credit Canada Inc. 2.45% Feb 27/17

Average Cost ($)

Fair % of Net Value ($) Assets

566,940

575,893

80,995

82,722

155,000

157,811

185,000

186,974

206,102

206,735

74,969

77,250

175,586

174,597

410,144

413,929

206,463

212,056

317,902

311,491

46,800

45,026

40,000

41,455

294,211

299,521

40,000

41,357

260,749

266,719

89,667

91,450

70,542

70,018

137,300

143,182

205,059

208,115

74,398

77,634

69,696

69,078

44,618

43,681

131,823 3,999

134,084 4,328

19,990

21,005

41,198

44,758

57,234

56,874

24,331

25,559

69,931

69,800

33,997

34,352

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio Par Value ($) Security

25,000 40,000 16,000 15,000 15,000 27,000 195,000 25,000 57,000 50,000 190,000 15,000 30,000 107,000 25,000 28,000 33,000 15,000 125,000 15,000 15,000 45,000 4,000 11,000 16,000 15,000 19,000 7,000 75,000 223,000 155,000 35,000 70,000 40,000 17,000

Average Cost ($)

Toyota Credit Canada Inc. 3.55% Feb 22/16 24,973 TransAlta Corporation 6.40% Nov 18/19 42,900 TransAlta Corporation 6.90% Nov 15/30 16,609 TransAlta Corporation 7.30% Oct 22/29 16,388 TransCanada PipeLines Limited 3.65% Nov 15/21 14,980 TransCanada PipeLines Limited 4.55% Nov 15/41 26,962 TransCanada PipeLines Limited 4.65% Oct 03/16 213,326 TransCanada PipeLines Limited 5.05% Feb 14/14 26,589 TransCanada PipeLines Limited 5.10% Jan 11/17 53,105 TransCanada PipeLines Limited 5.65% Jan 15/14 54,451 TransCanada PipeLines Limited 8.05% Feb 17/39 298,142 TransCanada PipeLines Limited 8.23% Jan 16/31 20,401 TransCanada PipeLines Limited 11.80% Nov 20/20 47,358 Union Gas Limited 4.64% Jun 30/16 108,302 Union Gas Limited 4.85% Apr 25/22 28,737 Union Gas Limited 4.88% Jun 21/41 27,965 Union Gas Limited 5.20% Jul 23/40 38,323 Union Gas Limited 6.05% Sep 02/38 17,850 Union Gas Limited 9.70% Nov 06/17 170,706 University of Toronto 4.25% Dec 07/51 15,207 University of Windsor 5.37% Jun 29/46 15,846 Vancouver International Airport Authority 4.42% Dec 07/18 50,655 Veresen Inc. 3.95% Mar 14/17 3,998 Veresen Inc. 4.00% Nov 22/18 10,970 Viterra Inc. 6.41% Feb 16/21 16,000 VW Credit Canada Inc. 2.20% Oct 11/16 14,985 VW Credit Canada Inc. 2.50% Jun 01/15 18,997 VW Credit Canada Inc. 2.90% Jun 01/17 7,000 VW Credit Canada Inc. 3.60% Feb 01/16 76,619 Wells Fargo Financial Canada Corporation 2.77% Feb 09/17 223,004 Wells Fargo Financial Canada Corporation 2.94% Jul 25/19 155,000 Wells Fargo Financial Canada Corporation 3.70% Mar 30/16 34,986 Wells Fargo Financial Canada Corporation 3.97% Nov 03/14 70,209 Wells Fargo Financial Canada Corporation 4.38% Jun 30/15 42,435 Westcoast Energy Inc. 3.28% Jan 15/16 16,985

ING DIRECT Annual Financial Statements December 31, 2012

Fair % of Net Value ($) Assets

26,154 44,330 16,445 15,978 15,977 29,560 212,910 25,902 63,439 52,086 309,299

Par Value ($) Security

Average Cost ($)

Fair % of Net Value ($) Assets

10,000 Westcoast Energy Inc. 3.88% Oct 28/21 10,000 10,676 60,000 Westcoast Energy Inc. 4.57% Jul 02/20 65,210 66,940 6,000 Westcoast Energy Inc. 4.79% Oct 28/41 6,000 6,750 40,000 Westcoast Energy Inc. 5.60% Jan 16/19 43,268 46,566 50,000 Westcoast Energy Inc. 7.15% Mar 20/31 68,105 70,082 10,000 Windsor Canada Utilities Ltd. 4.13% Nov 06/42 10,000 10,040 8,950 York Region District School Board 6.45% Jun 04/24 11,054 11,078 3,000 Yukon Development Corp. 5.00% Jun 29/40 2,980 3,596 36,890,141 38,369,517 20.0 Total Fixed Income 129,233,641 132,950,095 69.4 Total Investments 183,435,408 190,462,072 99.4 Other assets less liabilities 1,121,880 0.6 Net assets 191,583,952 100.0

22,508 48,336 116,281 28,689 32,888 40,165 20,151 165,012 15,649 18,181 50,153 4,123 11,302 17,610 14,990 19,242 7,153 78,345 226,798 156,381 36,653 72,707 42,321 17,592 31

ING DIRECT Streetwise Balanced Income Portfolio (formerly ING DIRECT Streetwise Balanced Income Fund) NOTES TO THE FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2012 AND 2011 1. ORGANIZATION OF THE FUND ING Direct Streetwise Balanced Income Portfolio (the “Fund”) is an open-ended mutual fund trust established 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 Balanced Income Fund to ING DIRECT Streetwise Balanced Income 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. 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. (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 bonds or similar securities and 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 32

closing net asset value of the respective mutual fund. Bonds and similar securities are valued at the closing bid quotation received from recognized investment dealers. Short-term notes are valued at amortized cost which approximates fair value at bid prices. 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. (c) 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. (d) 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. (e) 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”. (f) 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.

ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio (g) 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. (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 $10.98 (December 31, 2011: $10.69) and $10.97 (December 31, 2011: $10.68), respectively.

ING DIRECT Annual Financial Statements December 31, 2012

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. The Fund is exposed to the risk that the Canadian dollar value of investments, cash and cash equivalents 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, cash and cash equivalents rises. When the value of the Canadian dollar rises, the Canadian dollar value of foreign investment, cash and cash equivalents falls. Other financial assets and financial 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 ($) 1,750,746 4,405,440 216,582 5,590,209 609,539 88,660 3,736,960 26,218 182,660 371,644 669,292 1,709,611 19,191,044 38,548,605

As % of Net assets 0.91% 2.30% 0.11% 2.92% 0.32% 0.05% 1.95% 0.01% 0.10% 0.19% 0.35% 0.89% 10.02% 20.12%

Impact on Net assets ($) 17,508 44,054 2,166 55,902 6,095 887 37,370 262 1,827 3,716 6,693 17,096 191,910 385,486

33

ING DIRECT Streetwise Balanced Income Portfolio December 31, 2011 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 ($) 1,076,233 2,919,791 142,358 3,429,798 356,619 71,332 2,682,557 9,574 109,067 193,004 362,976 1,091,750 13,770,800 26,215,859

As % of Net assets 0.83% 2.25% 0.11% 2.64% 0.28% 0.05% 2.07% 0.01% 0.08% 0.15% 0.28% 0.84% 10.61% 20.20%

Impact on Net assets ($) 10,762 29,198 1,424 34,298 3,566 713 26,826 96 1,091 1,930 3,630 10,917 137,708 262,159

(b) Interest rate risk The Fund is exposed to the risk that the value of interestbearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. The Fund’s portfolio of interest-bearing financial instruments consists of cash, cash equivalents and fixed income securities comprising the DEX Universe Bond Index. The Fund’s exposure to interest rate risk arising from cash and cash equivalents is minimal. The following table summarizes the Fund’s exposure to interest rate risk by remaining term to maturity on fixed income securities: 0 – 3 years 3 – 5 years > 5 years Total Bonds December 31, 2012 $32,089,077 $25,727,850 $75,133,168 $132,950,095 December 31, 2011 $22,332,534 $16,419,711 $50,192,974 $88,945,219

As at December 31, 2012, had prevailing interest rates increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables held constant, net assets would have decreased or increased by approximately $9,226,676 (December 31, 2011: $6,080,297) or 4.82% (December 31, 2011: 4.69%) of total net assets. The Fund’s sensitivity to interest rate changes was estimated using the weighted average duration of the bond portfolio. In practice, actual trading results may differ and the difference could be material. (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. 34

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 table below 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, using 12 monthly data points, as available. The historical correlation may not be representative of future correlation, and accordingly the impact on Net Assets could be materially different.

Benchmark DEX Universe Bond Index 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 ($) net assets ($) 1,341,343 899,452 192,248 128,730 190,893 135,844 197,101 1,921,585

125,974 1,290,000

As at December 31, 2012, 30.02% (December 31, 2011: 30.10%) 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. The Fund’s exposure to credit risk mainly arises from the Fund’s investment in fixed income securities comprising the DEX Universe Bond Index and its participation in securities lending transactions. The fair value of debt securities includes consideration of the creditworthiness of the debt issuer. Credit ratings are obtained from Standard & Poor’s, Moody’s and/or Dominion Bond Rating Services. 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. As at December 31, 2012 and December 31, 2011, debt securities by credit rating are as follows:

Debt Securities by Credit Rating AAA/Aaa AA/Aa A/A BBB/Bbb Total

December 31, 2012 December 31, 2011 As % of Total As % of Total Debt Securities Debt Securities 47% 49% 24% 25% 22% 20% 7% 6% 100% 100% ING DIRECT Annual Financial Statements December 31, 2012

ING DIRECT Streetwise Balanced Income Portfolio All transactions executed by the Fund in listed securities are settled or paid for upon delivery using approved brokers. The 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 obligations. (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 Fixed Income Total investments December 31, 2011 Equities Short-term & Fixed Income Total investments and cash equivalents

Level 1 Level 2 ($) ($) 57,511,977 – – 132,950,095 57,511,977 132,950,095

Level 3 ($) – – –

Total ($) 57,511,977 132,950,095 190,462,072

Level 1 ($) 39,054,786

Level 2 ($) –

Level 3 ($) –

Total ($) 39,054,786

– 89,945,219



89,945,219

39,054,786 89,945,219



129,000,005

During the years 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

ING DIRECT Annual Financial Statements December 31, 2012

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 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 year Issued Reinvested Redeemed Balance – end of the year

December 31, 2012

December 31, 2011

12,155,790 7,376,692 361,613 (2,429,154) 17,464,941

6,401,075 7,826,829 208,601 (2,280,715) 12,155,790

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. Historically, the Fund has made 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.

35

ING DIRECT Streetwise Balanced Income Portfolio 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 11,458,285 11,743,671

December 31, 2011 1,921,715 2,116,189

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

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. 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.

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

36

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.

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