NOTES TO FINANCIAL STATEMENTS AS OF FEBRUARY 28,
2014 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
(continued)
a certain counterparty. Collateral pledged to the Fund
is held in a segregated account by a third-party agent and can be in the form of cash or debt securities issued by the U.S. government or related
agencies.
The Fund’s master agreements with derivative
counterparties have credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or
additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives
counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but
are not limited to, a percentage decrease in the Fund’s net assets and or a percentage decrease in the Fund’s NAV, which could cause the Fund
to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Fund’s Master
Agreements.
As of February 28, 2014, the Fund had a liability position
of $4,120,714 on open forward foreign currency contracts and written options with credit related contingent features. If a contingent feature would
have been triggered as of February 28, 2014, the Fund could have been required to pay this amount in cash to its counterparties. As of February 28,
2014 the Fund had posted $2,730,000 in cash collateral for its open OTC derivatives transactions. There were no credit events during the year ended
February 28, 2014 that triggered any credit related contingent features.
H. Forward Foreign Currency Contracts and Futures
Contracts. The Fund may enter into forward foreign currency contracts primarily to hedge against foreign currency exchange rate risks on its
non-U.S. dollar denominated investment securities. When entering into a forward foreign currency contract, the Fund agrees to receive or deliver a
fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the Fund’s net equity
therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of
entry into the contracts and the forward rates at the reporting date, is included in the statement of assets and liabilities. Realized and unrealized
gains and losses on forward foreign currency contracts are included on the Statement of Operations. These instruments involve market and/or credit risk
in excess of the amount recognized in the statement of assets and liabilities. Risks arise from the possible inability of counterparties to meet the
terms of their contracts and from movement in currency and securities values and interest rates.
During the year ended February 28, 2014, the Fund used
forward foreign currency contracts to hedge its investments in non-U.S. dollar denominated equity securities in an attempt to decrease the volatility
of the Fund’s NAV. Please refer to the table following the Summary Portfolio of Investments for open forward foreign currency at February 28,
2014.
During the year ended February 28, 2014, the Fund had
average contract amounts on forward foreign currency contracts to buy and sell of $1,521,622 and $85,199,243, respectively.
The Fund may enter into futures contracts involving foreign
currency, interest rates, securities and securities indices. A futures contract obligates the seller of the contract to deliver and the purchaser of
the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time
for a specified price. Upon entering into such a contract, the Fund is required to deposit and maintain as collateral such initial margin as required
by the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount equal to the
daily fluctuations in the value of the contract. Such receipts or payments are known as variation margin and are recorded as unrealized gains or losses
by the Fund. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
Futures contracts are exposed to the market risk factor of
the underlying financial instrument. During the year ended February 28, 2014, the Fund had purchased futures contracts on various equity indices
primarily to provide exposures to such index returns while allowing the fund managers to maintain a certain level of cash balances in the Fund.
Additional associated risks of entering into futures contracts include the possibility that there may be an illiquid market where the Fund is unable to
liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate
imperfectly with the prices of the Fund’s securities. With futures, there is minimal counterparty credit risk to the Fund since futures are
exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default. Please
refer to the table following the Summary Portfolio of Investments for open futures contracts at February 28, 2014.
During the year ended February 28, 2014, the Fund had
average notional values on futures contracts purchased and sold of $14,967,052 and $3,207,358, respectively.
15
NOTES TO FINANCIAL STATEMENTS AS OF FEBRUARY 28,
2014 (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
(continued)
I. Options Contracts. The Fund may
purchase put and call options and may write (sell) put options and covered call options. The premium received by the Fund upon the writing of a put or
call option is included in the Statement of Assets and Liabilities as a liability which is subsequently marked-to-market until it is exercised or
closed, or it expires. The Fund will realize a gain or loss upon the expiration or closing of the option contract. When an option is exercised, the
proceeds on sales of the underlying security for a written call option or purchased put option or the purchase cost of the security for a written put
option or a purchased call option is adjusted by the amount of premium received or paid. The risk in writing a call option is that the Fund gives up
the opportunity for profit if the market price of the security increases and the option is exercised. The risk in buying an option is that the Fund
pays a premium whether or not the option is exercised. Risks may also arise from an illiquid secondary market or from the inability of counterparties
to meet the terms of the contract.
The Fund generates premiums and seeks gains by writing call
options on indices on a portion of the value of the equity portfolio. Please refer to Note 7 for the volume of written option activity during the year
ended February 28, 2014.
J. Indemnifications. In the normal
course of business, the Fund may enter into contracts that provide certain indemnifications. The Fund’s maximum exposure under these arrangements
is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, management considers
the risk of loss from such claims remote.
NOTE 3 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE
FEES
ING Investments, LLC (“ING Investments” or the
“Investment Adviser”), an Arizona limited liability company, is the Investment Adviser of the Fund. The Fund pays the Investment Adviser for
its services under the investment management agreement (“Management Agreement”), a fee, payable monthly, based on an annual rate of 0.75% of
the Fund’s average daily managed assets. For purposes of the Management Agreement, managed assets are defined as the Fund’s average daily
gross asset value, minus the sum of the Fund’s accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other
than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Fund and the liquidation preference of
any outstanding preferred shares). As of February 28, 2014, there were no preferred shares outstanding.
The Investment Adviser has retained ING Investment
Management Co. LLC (“ING IM” or “Consultant”), a Delaware limited liability company, to provide certain consulting services for the
Investment Adviser. These services include, among other things, furnishing statistical and other factual information; providing advice with respect to
potential investment strategies that may be employed for the Fund, including, but not limited to, potential options strategies; developing economic
models of the anticipated investment performance and yield for the Fund; and providing advice to the Investment Adviser and/or sub-adviser with respect
to the Fund’s level and/or managed distribution policy. For its services, the Consultant will receive a consultancy fee from the Investment
Adviser. No fee will be paid by the Fund directly to the Consultant.
The Investment Adviser entered into sub-advisory agreements
with ING Investment Management Advisors B.V. (“IIMA”), a subsidiary of ING Groep N.V. (“ING Groep”), domiciled in The Hague, The
Netherlands, and ING IM. Subject to policies as the Board or the Investment Adviser might determine, IIMA and ING IM manage the Fund’s assets in
accordance with the Fund’s investment objectives, policies and limitations.
ING Funds Services, LLC (the “Administrator”), a
Delaware limited liability company, serves as Administrator to the Fund. The Fund pays the Administrator for its services a fee based on an annual rate
of 0.10% of the Fund’s average daily managed assets.
NOTE 4 — EXPENSE LIMITATION
AGREEMENT
The Investment Adviser has entered into a written expense
limitation agreement (“Expense Limitation Agreement”) with the Fund under which it will limit the expenses of the Fund, excluding interest,
taxes, leverage expenses, extraordinary expenses, and acquired fund fees and expenses to 1.00% of average daily managed assets. The Investment Adviser
may at a later date recoup from the Fund fees waived and other expenses assumed by the Investment Adviser during the previous 36 months, but only if,
after such recoupment, the Fund’s expense ratio does not exceed the percentage described above. The Expense Limitation Agreement is contractual
through March 1, 2015 and shall renew automatically for one-year terms unless: (i) ING Investments provides 90 days written notice of its termination
and such termination is approved by the Board; or (ii) the Management Agreement has been terminated.
Waived and reimbursed fees and any recoupment by the
Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations.
16
NOTES TO FINANCIAL STATEMENTS AS OF FEBRUARY 28,
2014 (CONTINUED)
NOTE 4 — EXPENSE LIMITATION
AGREEMENT
(continued)
As of February 28, 2014, the amounts of waived or
reimbursed fees that are subject to possible recoupment by the Investment Adviser, and the related expiration dates, are as follows:
February 28,
|
|
|
|
2015
|
|
|
|
2016
|
|
2017
|
|
Total
|
|
|
|
|
$ |
37,214 |
|
|
|
|
$ |
37,214 |
|
NOTE 5 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED
PARTIES
The Fund has adopted a Deferred Compensation Plan (the
“Plan”), which allows eligible non-affiliated trustees as described in the Plan to defer the receipt of all or a portion of the trustees fees
payable. Amounts deferred are treated as though invested in various “notional” funds advised by ING Investments until distribution in
accordance with the Plan.
NOTE 6 — PURCHASES AND SALES OF INVESTMENT
SECURITIES
The cost of purchases and proceeds from sales of
investments for the year ended February 28, 2014, excluding short-term securities, were $26,101,587 and $53,970,781, respectively.
NOTE 7 — TRANSACTIONS IN WRITTEN
OPTIONS
Transactions in written OTC call options on equity indices
were as follows:
|
|
|
|
Number of
Contracts
|
|
Premiums
Received
|
|
|
|
|
|
174,600 |
|
|
$ |
2,586,658 |
|
|
|
|
|
|
1,411,800 |
|
|
|
24,520,794 |
|
|
|
|
|
|
(362,900 |
) |
|
|
(5,898,140 |
) |
|
|
|
|
|
— |
|
|
|
— |
|
Options Terminated in Closing Purchase Transactions |
|
|
|
|
(1,059,900 |
) |
|
|
(18,285,397 |
) |
|
|
|
|
|
163,600 |
|
|
$ |
2,923,915 |
|
NOTE 8 — CONCENTRATION OF INVESTMENT
RISKS
All mutual funds involve risk — some more than others
— and there is always the chance that you could lose money or not earn as much as you hope. The Fund’s risk profile is largely a factor of
the principal securities in which it invests and investment techniques that it uses. For more information regarding the types of securities and
investment techniques that may be used by the Fund and its corresponding risks, see the Fund’s most recent Prospectus and/or the Statement of
Additional Information.
Foreign Securities and Emerging Markets. The
Fund makes significant investments in foreign securities and may invest up to 20% of its managed assets in securities issued by companies located in
countries with emerging markets. Investments in foreign securities may entail risks not present in domestic investments. Since investments in
securities are denominated in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect
the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions,
expropriation, taxation or other political, social or economic developments, as well as from movements in currency, security value and interest rate,
all of which could affect the market and/or credit risk of the investments. The risks of investing in foreign securities can be intensified in the case
of investments in issuers located in countries with emerging markets.
Leverage. Although the Fund has no current
intention to do so, the Fund is authorized to utilize leverage through the issuance of preferred shares and/or borrowings, including the issuance of
debt securities. In the event that the Fund determines in the future to utilize investment leverage, there can be no assurance that such a leveraging
strategy will be successful during any period in which it is employed.
NOTE 9 — CAPITAL SHARES
Transactions in capital shares and dollars were as
follows:
|
|
|
|
Reinvestment
of
distributions
|
|
Net increase
in shares
outstanding
|
|
Reinvestment
of
distributions
|
|
Net
increase
|
Year or period ended
|
|
|
|
# |
|
# |
|
($) |
|
($) |
|
|
|
|
|
13,105 |
|
|
|
13,105 |
|
|
|
168,572 |
|
|
|
168,572 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
NOTE 10 — FEDERAL INCOME TAXES
The amount of distributions from net investment income and
net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP for investment companies.
These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their
federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of short-term capital gains, foreign
currency transactions, income from passive foreign investment companies (PFICs) and wash sale deferrals. Distributions in excess of net investment
income and/or net realized capital gains for tax purposes are reported as return of capital.
17
NOTES TO FINANCIAL STATEMENTS AS OF FEBRUARY 28,
2014 (CONTINUED)
NOTE 10 — FEDERAL INCOME TAXES
(continued)
The following permanent tax differences have been
reclassified as of the Fund’s tax year ended December 31, 2013:
Undistributed
Net Investment Income
|
|
|
|
Accumulated
Net Realized
Gains/(Losses)
|
|
|
|
|
|
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to
shareholders.
The tax composition of dividends and distributions in the
current period will not be determined until after the Fund’s tax year-end of December 31, 2014. The tax composition of dividends and distributions
as of the Fund’s most recent tax year-ends was as follows:
Tax Year Ended
December 31, 2013
|
|
Tax Year Ended
December 31, 2012
|
|
Ordinary
Income
|
|
|
|
Return
of Capital
|
|
Ordinary
Income
|
|
Long-term
Capital Gain
|
|
Return
of Capital
|
|
|
|
|
|
|
|
|
|
|
|
The tax-basis components of distributable earnings and the
capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of December 31, 2013 are
detailed below. The Regulated Investment Company Modernization Act of 2010 (the “Act”) provides an unlimited carryforward period for newly
generated capital losses. Under the Act, there may be a greater likelihood that all or a portion of the Fund’s pre-enactment capital loss
carryforwards may expire without being utilized due to the fact that post-enactment capital losses are required to be utilized before pre-enactment
capital loss carryforwards.
Post-October
Capital
Losses
Deferred
|
|
|
|
Unrealized
Appreciation/
(Depreciation)
|
|
Short-term
Capital Loss
Carryforwards
|
|
Expiration
|
|
|
|
|
|
|
|
|
|
The Fund’s major tax jurisdictions are U.S. federal
and Arizona. The earliest tax year that remains subject to examination by these jurisdictions is 2009.
As of February 28, 2014, no provision for income tax is
required in the Fund’s financial statements as a result of tax positions taken on federal and state income tax returns for open tax years. The
Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are
subject to examination by the Internal Revenue Service and state department of revenue.
NOTE 11 — RESTRUCTURING PLAN
In October 2009, ING Groep submitted a restructuring plan
(the “Restructuring Plan”) to the European Commission in order to receive approval for state aid granted to ING Groep by the Kingdom of the
Netherlands in November 2008 and March 2009. To receive approval for this state aid, ING Groep was required to divest its insurance and investment
management businesses, including ING U.S., before the end of 2013. In November 2012, the Restructuring Plan was amended to permit ING Groep additional
time to complete the divestment. Pursuant to the amended Restructuring Plan, ING Groep must divest at least 25% of ING U.S. by the end of 2013, more
than 50% by the end of 2014, and the remaining interest by the end of 2016 (such divestment, the “Separation Plan”).
In May 2013, ING U.S. conducted an initial public offering
of ING U.S. common stock (the “IPO”). In October 2013, ING Groep divested additional shares in a secondary offering of common stock of ING
U.S. In March 2014, ING Groep divested additional shares, reducing its ownership interest in ING U.S. below 50%. ING U.S. did not receive any proceeds
from these offerings.
ING Groep has stated that it intends to sell its remaining
interest in ING U.S. over time. While the base case for the remainder of the Separation Plan is the divestment of ING Groep’s remaining interest
in one or more broadly distributed offerings, all options remain open and it is possible that ING Groep’s divestment of its remaining interest in
ING U.S. may take place by means of a sale to a single buyer or group of buyers.
18
NOTES TO FINANCIAL STATEMENTS AS OF FEBRUARY 28,
2014 (CONTINUED)
NOTE 11 — RESTRUCTURING PLAN
(continued)
It is anticipated that one or more of the transactions
contemplated by the Separation Plan would result in the automatic termination of the existing investment advisory and sub-advisory agreements under
which the Investment Adviser and sub-adviser provide services to the Fund. In order to ensure that the existing investment advisory and sub-advisory
services can continue uninterrupted, the Board approved new advisory and sub-advisory agreements for the Fund in connection with the IPO. Shareholders
of the Fund approved the new investment advisory and sub-advisory agreements prompted by the IPO, as well as any future advisory and sub-advisory
agreements prompted by the Separation Plan that are approved by the Board and whose terms are not materially different from the current agreements.
This means that shareholders may not have another opportunity to vote on a new agreement with the Investment Adviser or an affiliated sub-adviser even
if they undergo a change of control, as long as no single person or group of persons acting together gains “control” (as defined in the 1940
Act) of ING U.S.
The Separation Plan, whether implemented through public
offerings or other means, may be disruptive to the businesses of ING U.S. and its subsidiaries, including the Investment Adviser and affiliated
entities that provide services to the Fund, and may cause, among other things, interruption of business operations or services, diversion of
management’s attention from day-to-day operations, reduced access to capital, and loss of key employees or customers. The completion of the
Separation Plan is expected to result in the Investment Adviser’s loss of access to the resources of ING Groep, which could adversely affect its
business. Since a portion of the shares of ING U.S., as a standalone entity, are publicly held, it is subject to the reporting requirements of the
Securities Exchange Act of 1934 as well as other U.S. government and state regulations, and subject to the risk of changing
regulation.
The Separation Plan may be implemented in phases. During
the time that ING Groep retains a significant interest in ING U.S., circumstances affecting ING Groep, including restrictions or requirements imposed
on ING Groep by European and other authorities, may also affect ING U.S. A failure to complete the Separation Plan could create uncertainty about the
nature of the relationship between ING U.S. and ING Groep, and could adversely affect ING U.S. and the Investment Adviser and its affiliates.
Currently, the Investment Adviser and its affiliates do not anticipate that the Separation Plan will have a material adverse impact on their operations
or the Fund and its operation.
NOTE 12 — SUBSEQUENT EVENTS
Dividends: Subsequent to February 28, 2014, the Fund
made distributions of:
Per Share
Amount
|
|
|
|
Declaration
Date
|
|
Payable
Date
|
|
Record
Date
|
|
|
|
|
|
|
|
|
|
Each quarter, the Fund will provide disclosures with
distribution payments made that estimate the percentages of that distribution that represent net investment income, capital gains, and return of
capital, if any. A significant portion of the quarterly distribution payments made by the Fund may constitute a return of capital.
Effective May 1, 2014, the Fund is to be renamed Voya
Global Advantage and Premium Opportunity Fund.
The Fund has evaluated events occurring after the Statement
of Assets and Liabilities date (subsequent events) to determine whether any subsequent events necessitated adjustment to or disclosure in the financial
statements. Other than the above, no such subsequent events were identified.
19
ING GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND |
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF FEBRUARY 28, 2014 |
Shares
|
|
|
|
|
|
|
|
Value
|
|
Percentage
of Net
Assets
|
| |
|
|
|
|
|
|
|
|
|
|
|
$ |
1,815,647 |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,732,300 |
|
|
|
0.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,037,383 |
|
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,478,742 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
3,221,703 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
2,288,875 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
438,240 |
|
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
8,427,560 |
|
|
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,510,252 |
|
|
|
1.0 |
|
|
|
|
|
|
|
Bayerische Motoren Werke AG |
|
|
2,313,355 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
2,228,828 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
2,323,498 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
1,908,346 |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
11,284,279 |
|
|
|
4.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,195,608 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,062,086 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,583,758 |
|
|
|
1.1 |
|
|
|
|
|
|
|
Mitsubishi UFJ Financial Group, Inc. |
|
|
2,641,204 |
|
|
|
1.1 |
|
|
|
|
|
|
|
Sumitomo Mitsui Financial Group, Inc. |
|
|
2,545,719 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
3,487,719 |
|
|
|
1.4 |
|
|
|
|
|
|
|
|
|
|
6,132,707 |
|
|
|
2.5 |
|
|
|
|
|
|
|
|
|
|
17,391,107 |
|
|
|
7.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
299 |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,826,263 |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,717,575 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,119,170 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,268,618 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,645,556 |
|
|
|
0.7 |
|
|
| |
COMMON STOCK: (continued) |
|
|
|
|
|
|
|
|
|
|
$ |
1,379,561 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,230,719 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,194,103 |
|
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,999,378 |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
Cie Financiere Richemont SA |
|
|
2,500,819 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
4,017,719 |
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
3,631,746 |
|
|
|
1.5 |
|
|
|
|
|
|
|
Roche Holding AG — Genusschein |
|
|
5,166,564 |
|
|
|
2.2 |
|
|
|
|
|
|
|
|
|
|
1,481,712 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
16,798,560 |
|
|
|
7.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,388,065 |
|
|
|
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
442,188 |
|
|
|
0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,067,607 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
2,878,173 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
3,181,913 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
3,722,585 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
2,562,723 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
5,459,476 |
|
|
|
2.3 |
|
|
|
|
|
|
|
|
|
|
20,872,477 |
|
|
|
8.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,783,988 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
2,301,132 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
3,220,325 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
2,967,683 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
2,325,623 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
2,677,956 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
3,367,093 |
|
|
|
1.4 |
|
|
|
|
|
|
|
|
|
|
3,504,796 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
2,375,594 |
|
|
|
1.0 |
|
|
|
|
|
|
|
Freeport-McMoRan Copper & Gold, Inc. |
|
|
2,578,448 |
|
|
|
1.1 |
|
|
|
|
|
|
|
|
|
|
3,966,800 |
|
|
|
1.6 |
|
|
|
|
|
|
|
Goldman Sachs Group, Inc. |
|
|
3,216,313 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
5,284,430 |
|
|
|
2.2 |
|
|
|
|
|
|
|
Honeywell International, Inc. |
|
|
2,288,281 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
4,266,102 |
|
|
|
1.8 |
|
|
|
|
|
|
|
|
|
|
4,312,661 |
|
|
|
1.8 |
|
|
|
|
|
|
|
|
|
|
2,316,531 |
|
|
|
1.0 |
|
See Accompanying Notes to Financial
Statements
20
ING GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND |
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF FEBRUARY 28, 2014 (CONTINUED) |
Shares
|
|
|
|
|
|
|
|
Value
|
|
Percentage
of Net
Assets
|
| |
COMMON STOCK: (continued) |
|
United States: (continued) |
|
|
|
|
|
|
|
|
$ |
3,675,883 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
4,181,253 |
|
|
|
1.7 |
|
|
|
|
|
|
|
|
|
|
2,784,348 |
|
|
|
1.2 |
|
|
|
|
|
|
|
Occidental Petroleum Corp. |
|
|
2,795,026 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
3,487,791 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
5,075,981 |
|
|
|
2.1 |
|
|
|
|
|
|
|
Philip Morris International, Inc. |
|
|
2,311,760 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
3,247,321 |
|
|
|
1.3 |
|
|
|
|
|
|
|
|
|
|
2,518,074 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
2,513,825 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
3,001,203 |
|
|
|
1.2 |
|
|
|
|
|
|
|
|
|
|
4,317,385 |
|
|
|
1.8 |
|
|
|
|
|
|
|
|
|
|
38,868,185 |
|
|
|
16.2 |
|
|
|
|
|
|
|
|
|
|
132,531,791 |
|
|
|
55.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
236,360,293 |
|
|
|
98.4 |
|
|
|
|
|
|
|
Assets in Excess of Other Liabilities |
|
|
3,940,982 |
|
|
|
1.6 |
|
|
|
|
|
|
|
|
|
$ |
240,301,275 |
|
|
|
100.0 |
|
“Other Securities” represents issues not
identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate
respectively as of February 28, 2014.
The following footnotes apply to either the individual
securities noted or one or more of the securities aggregated and listed as a single line item.
@ |
|
Non-income producing security |
|
|
Cost for federal income tax purposes is
$194,977,308. |
Net unrealized appreciation consists of: |
|
|
|
|
|
|
Gross Unrealized Appreciation |
|
|
|
$ |
47,253,828 |
|
Gross Unrealized Depreciation |
|
|
|
|
(5,870,843 |
) |
Net Unrealized Appreciation |
|
|
|
$ |
41,382,985 |
|
Sector Diversification
|
|
|
|
Percentage
of Net Assets
|
|
|
|
|
|
24.4 |
% |
|
|
|
|
|
15.4 |
|
|
|
|
|
|
10.6 |
|
|
|
|
|
|
10.5 |
|
|
|
|
|
|
9.5 |
|
|
|
|
|
|
8.7 |
|
|
|
|
|
|
8.6 |
|
|
|
|
|
|
6.5 |
|
|
|
|
|
|
2.6 |
|
Telecommunication Services |
|
|
|
|
1.6 |
|
Assets in Excess of Other Liabilities |
|
|
|
|
1.6 |
|
|
|
|
|
|
100.0 |
% |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according
to the inputs used as of February 28, 2014 in valuing the assets and liabilities:
|
|
|
|
Quoted Prices
in Active Markets
for
Identical
Investments
(Level 1)
|
|
Significant
Other
Observable
Inputs#
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value
at
February 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,815,647 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,815,647 |
|
|
|
|
|
|
1,732,300 |
|
|
|
— |
|
|
|
— |
|
|
|
1,732,300 |
|
|
|
|
|
|
— |
|
|
|
1,037,383 |
|
|
|
— |
|
|
|
1,037,383 |
|
|
|
|
|
|
438,240 |
|
|
|
7,989,320 |
|
|
|
— |
|
|
|
8,427,560 |
|
|
|
|
|
|
— |
|
|
|
11,284,279 |
|
|
|
— |
|
|
|
11,284,279 |
|
|
|
|
|
|
— |
|
|
|
2,195,608 |
|
|
|
— |
|
|
|
2,195,608 |
|
|
|
|
|
|
3,062,086 |
|
|
|
— |
|
|
|
— |
|
|
|
3,062,086 |
|
|
|
|
|
|
— |
|
|
|
17,391,107 |
|
|
|
— |
|
|
|
17,391,107 |
|
|
|
|
|
|
— |
|
|
|
299 |
|
|
|
— |
|
|
|
299 |
|
|
|
|
|
|
1,826,263 |
|
|
|
— |
|
|
|
— |
|
|
|
1,826,263 |
|
|
|
|
|
|
— |
|
|
|
3,717,575 |
|
|
|
— |
|
|
|
3,717,575 |
|
|
|
|
|
|
1,119,170 |
|
|
|
— |
|
|
|
— |
|
|
|
1,119,170 |
|
|
|
|
|
|
1,268,618 |
|
|
|
— |
|
|
|
— |
|
|
|
1,268,618 |
|
|
|
|
|
|
— |
|
|
|
1,645,556 |
|
|
|
— |
|
|
|
1,645,556 |
|
|
|
|
|
|
1,379,561 |
|
|
|
— |
|
|
|
— |
|
|
|
1,379,561 |
|
|
|
|
|
|
— |
|
|
|
2,230,719 |
|
|
|
— |
|
|
|
2,230,719 |
|
|
|
|
|
|
— |
|
|
|
2,194,103 |
|
|
|
— |
|
|
|
2,194,103 |
|
|
|
|
|
|
— |
|
|
|
1,999,378 |
|
|
|
— |
|
|
|
1,999,378 |
|
|
|
|
|
|
— |
|
|
|
16,798,560 |
|
|
|
— |
|
|
|
16,798,560 |
|
|
|
|
|
|
1,388,065 |
|
|
|
— |
|
|
|
— |
|
|
|
1,388,065 |
|
|
|
|
|
|
— |
|
|
|
442,188 |
|
|
|
— |
|
|
|
442,188 |
|
See Accompanying Notes to Financial
Statements
21
ING GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND |
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF FEBRUARY 28, 2014 (CONTINUED) |
|
|
|
|
Quoted Prices
in Active Markets
for
Identical
Investments
(Level 1)
|
|
Significant
Other
Observable
Inputs#
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value
at
February 28, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
|
$ |
20,872,477 |
|
|
$ |
— |
|
|
$ |
20,872,477 |
|
|
|
|
|
|
132,489,718 |
|
|
|
42,073 |
|
|
|
— |
|
|
|
132,531,791 |
|
|
|
|
|
|
146,519,668 |
|
|
|
89,840,625 |
|
|
|
— |
|
|
|
236,360,293 |
|
Total Investments, at fair value |
|
|
|
$ |
146,519,668 |
|
|
$ |
89,840,625 |
|
|
$ |
— |
|
|
$ |
236,360,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments+ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Foreign Currency Contracts |
|
|
|
$ |
— |
|
|
$ |
(562,659 |
) |
|
$ |
— |
|
|
$ |
(562,659 |
) |
|
|
|
|
|
(128,062 |
) |
|
|
— |
|
|
|
— |
|
|
|
(128,062 |
) |
|
|
|
|
|
— |
|
|
|
(3,558,055 |
) |
|
|
— |
|
|
|
(3,558,055 |
) |
|
|
|
|
$ |
(128,062 |
) |
|
$ |
(4,120,714 |
) |
|
$ |
— |
|
|
$ |
(4,248,776 |
) |
ˆ |
|
See Note 2, “Significant Accounting Policies” in the
Notes to Financial Statements for additional information. |
+ |
|
Other Financial Instruments are derivatives not reflected in the
Portfolio of Investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options.
Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument. OTC swaps and
written options are valued at the fair value of the instrument. |
# |
|
The earlier close of the foreign markets gives rise to the
possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those
securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party
vendor modeling tools to the extent available. Accordingly, a portion of the Fund’s investments are categorized as Level 2
investments. |
At February 28, 2014, the following forward foreign currency contracts were outstanding for the ING Global Advantage and Premium Opportunity
Fund:
Counterparty
|
|
|
|
Currency
|
|
Contract
Amount
|
|
Buy/Sell
|
|
Settlement
Date
|
|
In Exchange For
|
|
Fair Value
|
|
Unrealized
Appreciation
(Depreciation)
|
|
|
|
|
|
|
|
13,094,327 |
|
|
|
|
|
|
$ |
21,823,228 |
|
|
$ |
21,922,640 |
|
|
$ |
(99,412 |
) |
Royal Bank of Scotland Group PLC |
|
|
|
|
|
|
1,789,205,639 |
|
|
|
|
|
|
|
17,494,409 |
|
|
|
17,583,364 |
|
|
|
(88,955 |
) |
Royal Bank of Scotland Group PLC |
|
|
|
|
|
|
13,621,301 |
|
|
|
|
|
|
|
15,320,876 |
|
|
|
15,490,562 |
|
|
|
(169,686 |
) |
|
|
|
|
|
|
|
19,122,971 |
|
|
|
|
|
|
|
26,216,580 |
|
|
|
26,395,116 |
|
|
|
(178,536 |
) |
|
|
|
|
|
|
|
10,616,931 |
|
|
|
|
|
|
|
3,016,750 |
|
|
|
3,042,706 |
|
|
|
(25,956 |
) |
Royal Bank of Scotland Group PLC |
|
|
|
|
|
|
12,670 |
|
|
|
|
|
|
|
21,097 |
|
|
|
21,211 |
|
|
|
(114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(562,659 |
) |
ING Global Advantage and Premium Opportunity Fund Open
Futures Contracts on February 28, 2014:
Contract Description
|
|
|
|
Number
of Contracts
|
|
Expiration
Date
|
|
Notional
Value
|
|
Unrealized
Appreciation/
(Depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03/19/14 |
|
|
$ |
650,121 |
|
|
$ |
(2 |
) |
|
|
|
|
|
|
|
03/21/14 |
|
|
|
3,063,373 |
|
|
|
(9,024 |
) |
|
|
|
|
|
|
|
03/13/14 |
|
|
|
1,097,327 |
|
|
|
(3,940 |
) |
|
|
|
|
|
|
|
|
|
|
$ |
4,810,821 |
|
|
$ |
(12,966 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
03/21/14 |
|
|
|
(2,229,120 |
) |
|
|
(115,096 |
) |
|
|
|
|
|
|
|
|
|
|
$ |
(2,229,120 |
) |
|
$ |
(115,096 |
) |
See Accompanying Notes to Financial
Statements
22
ING GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND |
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF FEBRUARY 28, 2014 (CONTINUED) |
ING Global Advantage and Premium Opportunity Fund
Written OTC Options on February 28, 2014:
Number of Contracts
|
|
|
|
Counterparty
|
|
Description
|
|
Exercise
Price
|
|
Expiration
Date
|
|
Premiums
Received
|
|
Fair Value
|
| Options on Indices |
|
|
|
|
|
|
|
|
|
Call on Euro Stoxx 50® Index |
|
|
3,120.560 |
EUR |
|
|
04/04/14 |
|
|
$ |
119,985 |
|
|
$ |
(131,502 |
) |
|
|
|
|
|
|
Call on Euro Stoxx 50® Index |
|
|
3,045.078 |
EUR |
|
|
03/21/14 |
|
|
|
130,575 |
|
|
|
(229,538 |
) |
|
|
|
|
|
|
Call on Euro Stoxx 50® Index |
|
|
3,158.155 |
EUR |
|
|
03/07/14 |
|
|
|
115,956 |
|
|
|
(33,671 |
) |
|
|
|
|
|
|
|
|
|
6,802.850 |
GBP |
|
|
03/07/14 |
|
|
|
227,159 |
|
|
|
(83,584 |
) |
|
|
|
|
|
|
|
|
|
6,520.060 |
GBP |
|
|
03/21/14 |
|
|
|
265,596 |
|
|
|
(607,974 |
) |
|
|
|
|
|
|
|
|
|
6,801.140 |
GBP |
|
|
04/04/14 |
|
|
|
241,291 |
|
|
|
(177,593 |
) |
|
|
|
|
|
|
|
|
|
14,738.235 |
JPY |
|
|
04/04/14 |
|
|
|
178,088 |
|
|
|
(172,794 |
) |
|
|
|
|
|
|
|
|
|
14,530.093 |
JPY |
|
|
03/20/14 |
|
|
|
179,779 |
|
|
|
(191,028 |
) |
|
|
|
|
|
|
|
|
|
15,880.388 |
JPY |
|
|
03/07/14 |
|
|
|
170,261 |
|
|
|
(1,680 |
) |
|
|
|
|
|
|
|
|
|
1,790.894 |
USD |
|
|
03/21/14 |
|
|
|
474,016 |
|
|
|
(1,033,154 |
) |
|
|
|
|
|
|
|
|
|
1,838.173 |
USD |
|
|
04/04/14 |
|
|
|
433,895 |
|
|
|
(569,239 |
) |
|
|
|
|
|
|
|
|
|
1,841.994 |
USD |
|
|
03/07/14 |
|
|
|
387,314 |
|
|
|
(326,298 |
) |
|
|
|
|
|
|
|
Total Written OTC
Options |
|
|
$ |
2,923,915 |
|
|
$ |
(3,558,055 |
) |
A summary of derivative instruments by primary risk
exposure is outlined in the following tables.
The fair value of derivative instruments as of February 28,
2014 was as follows:
Derivatives not accounted for as
hedging
instruments
|
|
|
|
Location on Statement
of Assets and
Liabilities
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts |
|
|
|
Unrealized depreciation on forward foreign currency contracts |
|
$ |
562,659 |
|
|
|
|
|
Written options, at fair value |
|
|
3,558,055 |
|
|
|
|
|
Net Assets — Unrealized depreciation* |
|
|
128,062 |
|
Total Liability Derivatives |
|
|
|
|
|
$ |
4,248,776 |
|
* |
|
Includes cumulative appreciation/depreciation of futures
contracts as reported in the table following the Summary Portfolio of Investments. |
The effect of derivative instruments on the Fund’s
Statement of Operations for the year ended February 28, 2014 was as follows:
|
|
|
|
Amount of Realized Gain or (Loss) on Derivatives
Recognized in Income
|
|
Derivatives not accounted for as
hedging
instruments
|
|
|
|
Foreign currency
related transactions*
|
|
Futures
|
|
Written options
|
|
Total
|
|
|
|
|
$ |
— |
|
|
$ |
(2,353,756 |
) |
|
$ |
(11,562,087 |
) |
|
$ |
(13,915,843 |
) |
Foreign exchange contracts |
|
|
|
|
(718,723 |
) |
|
|
— |
|
|
|
— |
|
|
|
(718,723 |
) |
|
|
|
|
$ |
(718,723 |
) |
|
$ |
(2,353,756 |
) |
|
$ |
(11,562,087 |
) |
|
$ |
(14,634,566 |
) |
| |
|
|
|
|
Change in Unrealized Appreciation or (Depreciation)
on Derivatives Recognized in Income
|
|
Derivatives not accounted for as
hedging
instruments
|
|
|
|
Foreign currency
related transactions*
|
|
Futures
|
|
Written options
|
|
Total
|
|
|
|
|
$ |
— |
|
|
$ |
(487,519 |
) |
|
$ |
(127,336 |
) |
|
$ |
(614,855 |
) |
Foreign exchange contracts |
|
|
|
|
(1,649,392 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,649,392 |
) |
|
|
|
|
$ |
(1,649,392 |
) |
|
$ |
(487,519 |
) |
|
$ |
(127,336 |
) |
|
$ |
(2,264,247 |
) |
* |
|
Amounts recognized for forward foreign currency contracts are
included in net realized gain (loss) on foreign currency related transactions and net change in unrealized appreciation or depreciation on foreign
currency related transactions. |
See Accompanying Notes to Financial
Statements
23
ING GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND |
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF FEBRUARY 28, 2014 (CONTINUED) |
The following is a summary by counterparty of the fair
value of OTC derivative instruments subject to Master Netting Agreements and collateral pledged (received), if any, at February 28,
2014:
|
|
|
|
Barclays
Bank PLC
|
|
BNP
Paribas Bank
|
|
Citigroup, Inc.
|
|
Royal Bank
of Scotland
Group PLC
|
|
Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward foreign currency contracts |
|
|
|
$ |
99,412 |
|
|
$ |
204,492 |
|
|
$ |
— |
|
|
$ |
258,755 |
|
|
$ |
562,659 |
|
|
|
|
|
|
387,880 |
|
|
|
2,617,498 |
|
|
|
552,677 |
|
|
|
— |
|
|
|
3,558,055 |
|
|
|
|
|
$ |
487,292 |
|
|
$ |
2,821,990 |
|
|
$ |
552,677 |
|
|
$ |
258,755 |
|
|
$ |
4,120,714 |
|
| |
Net OTC derivative instruments by counterparty, at fair value |
|
|
|
$ |
(487,292 |
) |
|
$ |
(2,821,990 |
) |
|
$ |
(552,677 |
) |
|
$ |
(258,755 |
) |
|
$ |
(4,120,714 |
) |
| |
Total collateral pledged by the Fund/(Received from counterparty) |
|
|
|
$ |
20,000 |
|
|
$ |
2,710,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,730,000 |
|
| |
|
|
|
|
$ |
(467,292 |
) |
|
$ |
(111,990 |
) |
|
$ |
(552,677 |
) |
|
$ |
(258,755 |
) |
|
$ |
(1,390,714 |
) |
(1) |
|
Positive net exposure represents amounts due from each
respective counterparty. Negative exposure represents amounts due from the Fund. Please refer to Note 2 for additional details regarding counterparty
credit risk and credit related contingent features. |
Supplemental Option Information
Supplemental Option Information
(Unaudited)
Supplemental Call Option Statistics as of February 28,
2014:
% of Total Net Assets against which calls written |
|
|
|
|
65.04 |
% |
Average Days to Expiration at time written |
|
|
|
|
44 days |
|
Average Call Moneyness* at time written |
|
|
|
|
ATM |
|
Premium received for calls |
|
|
|
$ |
2,923,915 |
|
|
|
|
|
$ |
3,558,055 |
|
* |
|
“Moneyness” is the term used to describe the
relationship between the price of the underlying asset and the option’s exercise or strike price. For example, a call (buy) option is considered
“in-the-money” when the value of the underlying asset exceeds the strike price. Conversely, a put (sell) option is considered
“in-the-money” when its strike price exceeds the value of the underlying asset. Options are characterized for the purpose of Moneyness as,
“in-the-money” (“ITM”), “out-of-the-money” (“OTM”) or “at-the-money” (“ATM”), where the
underlying asset value equals the strike price. |
See Accompanying Notes to Financial
Statements
24
TAX INFORMATION
(UNAUDITED)
Dividends and distributions paid during the tax year ended
December 31, 2013 were as follows:
Fund Name
|
|
|
|
Type
|
|
Per Share Amount
|
ING Global Advantage and Premium Opportunity Fund |
|
|
|
|
NII |
|
|
$ |
0.2724 |
|
|
|
|
|
|
ROC |
|
|
$ |
0.8476 |
|
NII — Net investment income
ROC — Return of capital
Of the ordinary distributions made during the tax year ended December 31, 2013, 52.48% qualifies for the dividends received deduction (DRD)
available to corporate shareholders.
For the tax year ended December 31, 2013, 100.00% of
ordinary income dividends paid by the Fund are designated as qualifying dividend income (QDI) subject to reduced income tax rates for
individuals.
Above figures may differ from those cited elsewhere in this
report due to differences in the calculation of income and gains under U.S. generally accepted accounting principles (book) purposes and Internal
Revenue Service (tax) purposes.
Shareholders are strongly advised to consult their own tax
advisers with respect to the tax consequences of their investments in the Fund. In January, shareholders, excluding corporate shareholders, receive an
IRS 1099-DIV regarding the federal tax status of the dividends and distributions they received in the calendar year.
25
SHAREHOLDER MEETING
INFORMATION (UNAUDITED)
An annual shareholder meeting of ING Global Advantage
and Premium Opportunity Fund was held May 6, 2013, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Suite 100, Scottsdale, AZ
85258.
Proposals:
1 |
|
To approve a new investment advisory agreement for the Fund with
ING Investments prompted by the IPO, and to approve, under certain circumstances, any future advisory agreements prompted by Change of Control Events
that occur as part of the Separation Plan. |
2 |
|
To approve a new investment sub-advisory agreement between ING
Investments and ING IM with respect to the Fund prompted by the IPO, and to approve, under certain circumstances, any future sub-advisory agreements
prompted by Change of Control Events that occur as part of the Separation Plan. |
3 |
|
To approve a new investment sub-advisory agreement between ING
Investments and IIMA with respect to the Fund prompted by the IPO, and to approve, under certain circumstances, any future sub-advisory agreements
prompted by Change of Control Events that occur as part of the Separation Plan. |
4 |
|
To elect five nominees to the Board of Trustees of the
Fund. |
|
|
|
|
Proposal
|
|
Shares voted for
|
|
Shares voted
against or withheld
|
|
Shares
abstained
|
|
Broker
non-vote
|
|
Total Shares
Voted
|
ING Global Advantage and Premium Opportunity Fund |
|
|
|
|
|
|
8,742,116.496 |
|
|
|
421,890.473 |
|
|
|
336,749.391 |
|
|
|
2,796,883.235 |
|
|
|
12,297,639.595 |
|
|
|
|
|
|
|
|
8,721,912.258 |
|
|
|
437,498.312 |
|
|
|
341,345.790 |
|
|
|
2,796,883.235 |
|
|
|
12,297,639.595 |
|
|
|
|
|
|
|
|
8,708,756.406 |
|
|
|
441,444.826 |
|
|
|
350,555.128 |
|
|
|
2,796,883.235 |
|
|
|
12,297,639.595 |
|
| |
|
|
|
|
Proposal
|
|
For All
|
|
Withhold All
|
|
For all Except
|
|
Broker
non-vote
|
|
Total Shares
Voted
|
|
|
|
|
|
|
|
11,887,834.288 |
|
|
|
409,805.307 |
|
|
|
0.000 |
|
|
|
0.000 |
|
|
|
12,297,639.595 |
|
|
|
|
|
|
|
|
11,855,824.162 |
|
|
|
441,815.433 |
|
|
|
0.000 |
|
|
|
0.000 |
|
|
|
12,297,639.595 |
|
|
|
|
|
|
|
|
11,853,097.554 |
|
|
|
444,542.041 |
|
|
|
0.000 |
|
|
|
0.000 |
|
|
|
12,297,639.595 |
|
|
|
|
|
|
|
|
11,889,001.273 |
|
|
|
408,638.322 |
|
|
|
0.000 |
|
|
|
0.000 |
|
|
|
12,297,639.595 |
|
|
|
|
|
|
|
|
11,855,485.523 |
|
|
|
442,154.072 |
|
|
|
0.000 |
|
|
|
0.000 |
|
|
|
12,297,639.595 |
|
** |
|
Effective close of business September 12, 2013, Mr. Gavin
resigned as Trustee. |
26
TRUSTEE AND
OFFICER INFORMATION (UNAUDITED)
The business and affairs of the Trust are managed under the
direction of the Trust’s Board. A Trustee, who is not an interested person of the Trust, as defined in the 1940 Act, is an independent trustee
(“Independent Trustee”). The Trustees and Officers of the Trust are listed below. The Statement of Additional Information includes additional
information about trustees of the Trust and is available, without charge, upon request at (800) 992-0180.
Name, Address and Age
|
|
|
|
Position(s)
Held with
the Trust
|
|
Term of Office
and Length of
Time Served(1)
|
|
Principal
Occupation(s) —
During the Past 5 Years
|
|
Number of
Funds in
Fund
Complex
Overseen
by
Trustee(2)
|
|
Other Board
Positions
Held by
Trustee
|
| |
|
| |
Colleen D. Baldwin
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 53 |
|
|
|
|
|
|
|
President, Glantuam Partners, LLC, a business consulting firm (January 2009–Present). |
|
|
|
DSM/Dentaquest, Boston, MA (February 2014–Present). |
| |
John V. Boyer
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 60 |
|
|
|
|
|
January 2014–Present
July 2005–Present |
|
President and Chief Executive Officer, Bechtler Arts Foundation, an arts and education foundation (January
2008–Present). |
|
|
|
|
| |
Patricia W. Chadwick
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 65 |
|
|
|
|
|
|
|
Consultant and President, Ravengate Partners LLC, a consulting firm that provides advice regarding financial markets and the global
economy (January 2000–Present). |
|
|
|
Wisconsin Energy Corporation (June 2006–Present) and The Royce Funds (35 funds) (December
2009–Present). |
| |
Albert E. DePrince, Jr.
7337 E. Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 73 |
|
|
|
|
|
|
|
Professor of Economics and Finance, Middle Tennessee State University (August 1991–Present).
|
|
|
|
|
| |
Peter S. Drotch
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 72 |
|
|
|
|
|
|
|
|
|
|
|
First Marblehead Corporation (September 2003–Present). |
| |
J. Michael Earley
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 68 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Russell H. Jones
7337 E. Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 69 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Patrick W. Kenny
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 71 |
|
|
|
|
|
|
|
Retired. Formerly, President and Chief Executive Officer, International Insurance Society (June 2001–June
2009). |
|
|
|
Assured Guaranty Ltd. (April 2004–Present). |
| |
Joseph E. Obermeyer
7337 E. Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 56 |
|
|
|
|
|
|
|
President, Obermeyer & Associates, Inc., a provider of financial and economic consulting services (November
1999–Present). |
|
|
|
|
27
TRUSTEE AND
OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
|
|
|
|
Position(s)
Held with
the Trust
|
|
Term of Office
and Length of
Time Served(1)
|
|
Principal
Occupation(s) —
During the Past 5 Years
|
|
Number of
Funds in
Fund
Complex
Overseen
by
Trustee(2)
|
|
Other Board
Positions
Held by
Trustee
|
| |
Sheryl K. Pressler
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 63 |
|
|
|
|
|
|
|
Consultant (May 2001–Present). |
|
|
|
|
| |
Roger B. Vincent
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 68 |
|
|
|
|
|
|
|
Retired. Formerly, President, Springwell Corporation, a corporate finance firm (March 1989–August 2011). |
|
|
|
UGI Corporation (February 2006–Present) and UGI Utilities, Inc. (February 2006–Present). |
| |
Trustee who is an “Interested Person”: |
| |
Shaun P. Mathews(3)
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale,
Arizona 85258
Age: 58 |
|
|
|
|
|
|
|
President and Chief Executive Officer, ING Investments, LLC (November 2006–Present). |
|
|
|
ING Capital Corporation, LLC (December 2005–Present) and ING Investments Distributor, LLC (December 2005–Present; ING Funds
Services, LLC, ING Investments LLC and ING Investment Management, LLC (March 2006–Present); and ING Investment Trust Co. (April
2009–Present). |
(1) |
|
Trustees serve until their successors are duly elected and
qualified. The tenure of each Trustee (“Independent Trustee”) is subject to the Board’s retirement policy, which states that each duly
elected or appointed Independent Trustee shall retire from and cease to be a member of the Board of Trustees as of the close of business on December 31
of the calendar year in which the Independent Trustee attains the age of 73. A majority vote of the Board’s other Independent Trustees may extend
the retirement date of an Independent Trustee if the retirement would trigger a requirement to hold a meeting of shareholders of the Trust under
applicable law, whether for purposes of appointing a successor to the Trustee or otherwise comply with applicable law, in which case the extension
would apply until such time as the shareholder meeting can be held or is no longer required (as determined by a vote of a majority of the other
Independent Trustees). |
(2) |
|
For the purpose of this table “ING Fund Complex” means
the following investment companies: ING Asia Pacific High Dividend Equity Income Fund; ING Balanced Portfolio, Inc.; ING Emerging Markets High Dividend
Equity Fund; ING Equity Trust; ING Funds Trust; ING Global Advantage and Premium Opportunity Fund; ING Global Equity Dividend and Premium Opportunity
Fund; ING Infrastructure, Industrials and Materials Fund; ING Intermediate Bond Portfolio; ING International High Dividend Equity Income Fund; ING
Investors Trust; ING Money Market Portfolio; ING Mutual Funds; ING Partners, Inc.; ING Prime Rate Trust; ING Risk Managed Natural Resources Fund; ING
Senior Income Fund; ING Separate Portfolios Trust; ING Series Fund, Inc.; ING Strategic Allocation Portfolios, Inc.; ING Variable Funds; ING Variable
Insurance Trust; ING Variable Portfolios, Inc.; and ING Variable Products Trust. The number of funds in the ING Fund Complex is as of March 31,
2014. |
(3) |
|
“Interested person,” as defined in the 1940 Act, by
virtue of this Trustee’s current affiliation with any of the Funds, ING or any of ING’s affiliates. |
28
TRUSTEE AND
OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
|
|
|
|
Position(s) Held
With the Trust
|
|
Term of Office
and Length of
Time Served(1)
|
|
Principal Occupation(s) —
During
the Past 5 Years
|
| |
Shaun P. Mathews
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 58 |
|
|
|
President and Chief Executive Officer |
|
|
|
President and Chief Executive Officer, ING Investments, LLC (November 2006–Present). |
| |
Michael J. Roland
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 55 |
|
|
|
|
|
|
|
Managing Director and Chief Operating Officer, ING Investments, LLC and ING Funds Services, LLC (April 2012–Present). Formerly,
Chief Compliance Officer, Directed Services LLC and ING Investments, LLC (March 2011–December 2013); Executive Vice President and Chief Operating
Officer, ING Investments, LLC and ING Funds Services, LLC (January 2007–April 2012) and Chief Compliance Officer, ING Funds (March
2011–February 2012). |
| |
Stanley D. Vyner
230 Park Avenue
New York, New York 10169
Age: 63 |
|
|
|
Executive Vice President
Chief Investment Risk Officer |
|
July 2005–Present
September 2009–Present |
|
Executive Vice President, ING Investments, LLC (July 2000–Present) and Chief Investment Risk Officer, ING Investments, LLC
(January 2003–Present). |
| |
Kevin M. Gleason
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 47 |
|
|
|
|
|
|
|
Senior Vice President, ING Investments, LLC (February 2012–Present). Formerly, Assistant General Counsel and Assistant
Secretary, The Northwestern Mutual Life Insurance Company (June 2004–January 2012). |
| |
Todd Modic
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 46 |
|
|
|
Senior Vice President, Chief/Principal Financial Officer and Assistant Secretary |
|
|
|
Senior Vice President, ING Funds Services, LLC (March 2005–Present). |
| |
Kimberly A. Anderson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 49 |
|
|
|
|
|
|
|
Senior Vice President, ING Investments, LLC (October 2003–Present). |
| |
Robert Terris
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 43 |
|
|
|
|
|
|
|
Senior Vice President, Head of Division Operations, ING Funds Services, LLC (January 2006–Present). |
| |
Julius A. Drelick, III
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 47 |
|
|
|
|
|
|
|
Senior Vice President — Fund Compliance, ING Funds Services, LLC (June 2012–Present). Chief Compliance Officer of Directed
Services LLC and ING Investments LLC (January 2014–Present). Formerly, Vice President — Platform Product Management & Project Management,
ING Investments, LLC (April 2007–June 2012). |
| |
Fred Bedoya
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 41 |
|
|
|
Vice President and Treasurer |
|
|
|
Vice President, ING Funds Services, LLC (March 2012– Present). Formerly, Assistant Vice President — Director, ING Funds
Services, LLC (March 2003–March 2012). |
| |
Robyn L. Ichilov
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 46 |
|
|
|
|
|
|
|
Vice President, ING Funds Services, LLC (November 1995–Present) and ING Investments, LLC (August 1997–Present). Formerly,
Treasurer, ING Funds (November 1999–February 2012). |
| |
Maria M. Anderson
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 55 |
|
|
|
|
|
|
|
Vice President, ING Funds Services, LLC (September 2004–Present). |
29
TRUSTEE AND
OFFICER INFORMATION (UNAUDITED) (CONTINUED)
Name, Address and Age
|
|
|
|
Position(s) Held
With the Trust
|
|
Term of Office
and Length of
Time Served(1)
|
|
Principal Occupation(s) —
During
the Past 5 Years
|
| |
Lauren D. Bensinger
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 60 |
|
|
|
|
|
|
|
Vice President, ING Investments, LLC and ING Funds Services, LLC (February 1996–Present); Director of Compliance, ING
Investments, LLC (October 2004–Present); and Vice President and Money Laundering Reporting Officer, ING Investments Distributor, LLC (April
2010–Present). Formerly, Chief Compliance Officer, ING Investments Distributor, LLC (August 1995–April 2010). |
| |
Jason Kadavy
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 38 |
|
|
|
|
|
|
|
Vice President, ING Funds Services, LLC (July 2007–Present). |
| |
Kimberly K. Springer
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 56 |
|
|
|
|
|
|
|
Vice President — Platform Product Management & Project Management, ING Investments, LLC (July 2012–Present); Vice
President, ING Investment Management — ING Funds (March 2010–Present) and Vice President, ING Funds Services, LLC (March 2006–Present).
Formerly Managing Paralegal, Registration Statements (June 2003–July 2012). |
| |
Craig Wheeler
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 45 |
|
|
|
|
|
|
|
Vice President — Director of Tax, ING Funds Services, LLC (March 2013–Present). Formerly, Assistant Vice President —
Director of Tax, ING Funds Services, LLC (March 2008–March 2013). |
| |
Huey P. Falgout, Jr.
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 50 |
|
|
|
|
|
|
|
Senior Vice President and Chief Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Chief
Counsel, ING Americas, U.S. Legal Services (October 2003–March 2010). |
| |
Theresa K. Kelety
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 51 |
|
|
|
|
|
|
|
Vice President and Senior Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Senior Counsel,
ING Americas, U.S. Legal Services (April 2008–March 2010). |
| |
Paul A. Caldarelli
7337 East Doubletree Ranch Rd.
Suite 100
Scottsdale, Arizona 85258
Age: 62 |
|
|
|
|
|
|
|
Vice President and Senior Counsel, ING Investment Management — ING Funds (March 2010–Present). Formerly, Senior Counsel,
ING Americas, U.S. Legal Services (April 2008–March 2010). |
(1) |
|
The Officers hold office until the next annual meeting of the
Board of Trustees and until their successors shall have been elected and qualified. |
30
ADDITIONAL INFORMATION
(UNAUDITED)
During the period, there were no material changes in the
Fund’s investment objective or policies that were not approved by the shareholders or the Fund’s charter or by-laws or in the principal risk
factors associated with investment in the Fund.
The Fund may lend portfolio securities in an amount equal
to up to 33-1/3% of its managed assets to broker dealers or other institutional borrowers, in exchange for cash collateral and fees. The fund may use
the cash collateral in connection with the Fund’s investment program as approved by the Adviser, including generating cash to cover collateral
posting requirements. Although the Fund has no current intention to do so, it may use the cash collateral to generate additional income. The use of
cash collateral in connection with the Fund’s investment program may have a leveraging effect on the Fund, which would increase the volatility of
the Fund and could reduce its returns and/or cause a loss.
The Fund intends to engage in lending portfolio securities
only when such lending is secured by cash or other permissible collateral in an amount at least equal to the market value of the securities loaned. The
Fund will maintain cash, cash equivalents or liquid securities holdings in an amount sufficient to cover its repayment obligation with respect to the
collateral, marked to market on a daily basis.
Securities lending involves the risks of delay in recovery
or even loss of rights in the securities loaned if the borrower of the securities fails financially. Loans will be made only to organizations whose
credit quality or claims paying ability is considered by the Sub-Adviser to be at least investment grade. The financial condition of the borrower will
be monitored by the Adviser on an ongoing basis. The Fund will not lend portfolio securities subject to a written American style covered call option
contract. The Fund may lend portfolio securities subject to a written European style covered call option contract as long as the lending period is less
than or equal to the term of the covered call option contract.
The Fund was granted exemptive relief by the SEC (the
“Order”), which under the 1940 Act, would permit the Fund, subject to Board approval, to include realized long-term capital gains as a part
of its regular distributions to Common Shareholders more frequently than would otherwise be permitted by the 1940 Act (generally once per taxable year)
(“Managed Distribution Policy”). The Fund may in the future adopt a Managed Distribution Policy.
Dividend Reinvestment Plan
Unless the registered owner of Common Shares elects to
receive cash by contacting Computershare Shareowner Services LLC (the “Plan Agent”), all dividends declared on Common Shares of the Fund will
be automatically reinvested by the Plan Agent for shareholders in additional Common Shares of the Fund through the Fund’s Dividend Reinvestment
Plan (the “Plan”). Shareholders who elect not to participate in the Plan will receive all dividends and other distributions in cash paid by
check mailed directly to the shareholder of record (or, if the Common Shares are held in street or other nominee name, then to such nominee) by the
Plan Agent. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and
processed by the Plan Agent prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any
subsequently declared dividend or other distribution. Some brokers may automatically elect to receive cash on your behalf and may re-invest that cash
in additional Common Shares of the Fund for you. If you wish for all dividends declared on your Common Shares of the Fund to be automatically
reinvested pursuant to the Plan, please contact your broker.
The Plan Agent will open an account for each Common
Shareholder under the Plan in the same name in which such Common Shareholder’s Common Shares are registered. Whenever the Fund declares a dividend
or other distribution (together, a “Dividend”) payable in cash, non-participants in the Plan will receive cash and participants in the Plan
will receive the equivalent in Common Shares. The Common Shares will be acquired by the Plan Agent for the participants’ accounts, depending upon
the circumstances described below, either (i) through receipt of additional unissued but authorized Common Shares from the Fund (“Newly Issued
Common Shares”) or (ii) by purchase of outstanding Common Shares on the open market (“Open-Market Purchases”) on the NYSE or elsewhere.
Open-market purchases and sales are usually made through a broker affiliated with the Plan Agent.
If, on the payment date for any Dividend, the closing
market price plus estimated brokerage commissions per Common Share is equal to or greater than the net asset value per Common Share, the Plan Agent
will invest the Dividend amount in Newly Issued Common Shares on behalf of the participants. The number of Newly Issued Common Shares to be credited to
each participant’s account will be determined by dividing the dollar amount of the Dividend by the net asset value per Common Share on the payment
date; provided that, if the net asset value is less than or equal to 95% of the closing market value on the payment date, the dollar amount of the
Dividend will be divided by 95% of the closing market price per Common Share on the payment date. If, on the payment date for any Dividend, the net
asset value per Common Share is greater than the closing market value plus estimated brokerage commissions, the Plan Agent will invest the Dividend
amount in Common Shares acquired on behalf of the participants in Open-Market Purchases. In the event of a market discount on the payment date for any
Dividend, the Plan Agent will have until the last business day before the next date on which the Common Shares trade on an
31
ADDITIONAL INFORMATION
(UNAUDITED) (CONTINUED)
“ex-dividend” basis or 30 days after the payment date for such Dividend,
whichever is sooner (the “Last Purchase Date”), to invest the Dividend amount in Common Shares acquired in Open-Market Purchases.
The Fund pays quarterly Dividends. Therefore, the period
during which Open-Market Purchases can be made will exist only from the payment date of each Dividend through the date before the next
“ex-dividend” date, which typically will be approximately ten days.
If, before the Plan Agent has completed its Open-Market
Purchases, the market price per common share exceeds the net asset value per Common Share, the average per Common Share purchase price paid by the Plan
Administrator may exceed the net asset value of the Common Shares, resulting in the acquisition of fewer Common Shares than if the Dividend had been
paid in Newly Issued Common Shares on the Dividend payment date. Because of the foregoing difficulty with respect to Open-Market Purchases, the Plan
provides that if the Plan Agent is unable to invest the full Dividend amount in Open-Market Purchases during the purchase period or if the market
discount shifts to a market premium during the purchase period, the Plan Agent will cease making Open-Market Purchases and will invest the un-invested
portion of the Dividend amount in Newly Issued Common Shares at the net asset value per common share at the close of business on the Last Purchase Date
provided that, if the net asset value is less than or equal to 95% of the then current market price per Common Share, the dollar amount of the Dividend
will be divided by 95% of the market price on the payment date.
The Plan Agent maintains all shareholders’ accounts in
the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by shareholders for tax records. Common
Shares in the account of each Plan participant will be held by the Plan Agent on behalf of the Plan participant, and each shareholder proxy will
include those shares purchased or received pursuant to the Plan. The Plan Agent will forward all proxy solicitation materials to participants and vote
proxies for shares held under the Plan in accordance with the instructions of the participants.
In the case of shareholders such as banks, brokers or
nominees which hold shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of Common
Shares certified from time to time by the record shareholder’s name and held for the account of beneficial owners who participate in the
Plan.
There will be no brokerage charges with respect to Common
Shares issued directly by the Fund. However, each participant will pay a pro rata share of brokerage commissions incurred in connection with
Open-Market Purchases. The automatic reinvestment of Dividends will not relieve participants of any federal, state or local income tax that may be
payable (or required to be withheld) on such Dividends. Participants that request a partial or full sale of shares through the Plan Agent are subject
to a $15.00 sales fee and a $0.10 per share brokerage commission on purchases or sales, and may be subject to certain other service
charges.
The Fund reserves the right to amend or terminate the Plan.
There is no direct service charge to participants with regard to purchases in the Plan; however, the Fund reserves the right to amend the Plan to
include a service charge payable by the participants.
All questions concerning the Plan should be directed to the
Fund’s Shareholder Service Department at (800) 992-0180.
Key Financial Dates — Calendar 2014
Distributions:
Declaration Date
|
|
|
|
Ex Date
|
|
Payable Date
|
March 17, 2014 |
|
|
|
|
April 1, 2014 |
|
|
|
April 15, 2014 |
|
June 16, 2014 |
|
|
|
|
July 1, 2014 |
|
|
|
July 15, 2014 |
|
September 15, 2014 |
|
|
|
|
October 1, 2014 |
|
|
|
October 15, 2014 |
|
December 15, 2014 |
|
|
|
|
December 29, 2014 |
|
|
|
January 15, 2015 |
|
Ex-Dividend Date. These dates are subject to
change.
Stock Data
The Fund’s common shares are traded on the NYSE
(Symbol: IGA).
Repurchase of Securities by Closed-End
Companies
In accordance with Section 23(c) of the 1940 Act, and Rule
23c-1 under the 1940 Act the Fund may from time to time purchase shares of beneficial interest of the Fund in the open market, in privately negotiated
transactions and/or purchase shares to correct erroneous transactions.
Number of Shareholders
The approximate number of record holders of Common Stock as
of February 28, 2014 was 13, which does not include approximately 8,701 beneficial owners of shares held in the name of brokers of other
nominees.
Certifications
In accordance with Section 303A.12 (a) of the New York
Stock Exchange Listed Company Manual, the Fund’s CEO submitted the Annual CEO Certification on June 27, 2013 certifying that he was not aware, as
of that date, of any violation by the Fund of the NYSE’s Corporate governance listing standards. In addition, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund’s principal executive and financial officers have made quarterly certifications,
included in filings with the SEC on Forms N-CSR and N-Q, relating to, among other things, the Fund’s disclosure controls and procedures and
internal controls over financial reporting.
32
ADDITIONAL INFORMATION
(UNAUDITED) (CONTINUED)
On April 7, 2014, ING U.S., Inc. changed its name to Voya
Financial, Inc. Effective May 1, 2014, ING Investments, LLC, the Investment Adviser to the Fund, will be renamed Voya Investments, LLC. ING Investment
Management Co. LLC, a sub-adviser and Consultant to the Fund, will be renamed Voya Investment Management Co. LLC. ING Funds Services, LLC, the
Administrator for the Fund, will be renamed Voya Funds Services, LLC. The Fund as well as the Registrant that the Fund is organized under will also be
renamed.
The new Registrant and Fund name will be as
follows:
Current Registrant Name
and Current Fund Name
|
|
|
|
New Registrant Name and
New Fund Name,
effective May 1, 2014
|
ING Global Advantage and Premium Opportunity Fund |
|
|
|
Voya Global Advantage and Premium Opportunity Fund |
33
(THIS PAGE INTENTIONALLY LEFT BLANK)
(THIS PAGE INTENTIONALLY LEFT BLANK)
Investment Adviser
ING Investments, LLC
7337 East
Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Administrator
ING Funds Services, LLC
7337 East
Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Transfer Agent
Computershare Shareowner Services
LLC
480 Washington Boulevard
Jersey City, New Jersey 07310-1900
Independent Registered Public Accounting Firm
KPMG
LLP
Two Financial Center
60 South Street
Boston, Massachusetts 02111
Custodian
The Bank of New York Mellon
One Wall
Street
New York, New York 10286
Legal Counsel
Dechert LLP
1900 K Street, N.W.
Washington, D.C. 20006
Toll-Free Shareholder Information
Call us from 9:00
a.m. to 7:00 p.m. Eastern time on any business day for account or other information, at (800) 992-0180
 |
AR-UIGA (0214-042414) |
As of the end of the
period covered by this report, Registrant had adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to the Registrant’s principal
executive officer and principal financial officer. There were no amendments to the Code
during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code during the period
covered by this report. The code of ethics is filed herewith pursuant to
Item 10(a)(l), Exhibit 99,CODE ETH.
| Item 3. |
Audit Committee Financial Expert. |
The
Board of Trustees has determined that J. Michael Earley, Peter S. Drotch and Colleen Baldwin are audit committee financial experts, as defined in Item 3 of
Form N-CSR. Mr. Earley, Mr. Drotch and Ms. Baldwin are “independent” for
purposes of Item 3 of Form N-CSR.
| Item 4. |
Principal Accountant Fees and Services. |
|
|
|
| (a) |
|
Audit Fees: The aggregate fees billed for each of the last two fiscal
years for professional services rendered by KPMG LLP (“KPMG”), the principal accountant for
the audit of the registrant’s annual financial statements, for services that are normally provided by the accountant in connection with statutory and
regulatory filings or engagements for the fiscal year were $26,600 for the year ended
February 28, 2014 and $24,500 for year ended February 28, 2013. |
|
|
| (b) |
|
Audit-Related Fees: The aggregate fees billed in each of the last two
fiscal years for assurance and related services by KPMG that are seasonably related to the
performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $2,400 for the year ended
February 28, 2014 and $2,400 for the year ended February 28, 2013. |
|
|
| (c) |
|
Tax Fees: The aggregate fees billed in each of the last two fiscal
years for professional services rendered by KPMG for tax compliance, tax advice, and tax planning were
$10,567 in the year ended February 28, 2014 and $8,926 in the year ended February 28, 2013. Such services included review of excise distribution
calculations (if applicable), preparation of the Funds’ federal state and excise tax
returns, tax services related to mergers and routine consulting. |
|
|
| (d) |
|
All Other Fees: The aggregate fees billed in each of the last two
fiscal years for all other fees were $0 for the year ended February 28, 2014 and $2,205 for the year ended February 28, 2013. |
|
|
| (e)(1) |
|
Audit Committee Pre-Approval Policies and Procedures |
1
AUDIT
AND NON-AUDIT SERVICES
PRE-APPROVAL POLICY
I. Statement of
Principles
Under
the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Board of Directors or Trustees (the “Committee”)
of the ING Funds (each a “Fund,” collectively, the “Funds”) set out on Exhibit A to this
Audit and Non-Audit Services Pre-Approval Policy (“Policy”) is
responsible for the oversight of the work of the Funds’ independent auditors. As part of its responsibilities, the Committee
must pre-approve the audit and non-audit services performed by the auditors in order to assure that the provision of these services
does not impair the auditors’ independence from the Funds. The Committee has adopted, and the Board has ratified, this Policy,
which sets out the procedures and conditions under which the services of the independent auditors may be pre-approved.
Under Securities and
Exchange Commission (“SEC”) rules promulgated in accordance with the Act, the Funds may establish two different approaches
to pre-approving audit and non-audit services. The Committee may approve services without consideration of specific case-by-case
services (“general pre-approval”) or it may pre-approve specific services (“specific pre-approval”). The
Committee believes that the combination of these approaches contemplated in this Policy results in an effective and efficient method
for pre-approving audit and non-audit services to be performed by the Funds’ independent auditors. Under this Policy, services
that are not of a type that may receive general pre-approval require specific pre-approval by the Committee. Any proposed services
that exceed pre-approved cost levels or budgeted amounts will also require the Committee’s specific pre-approval.
For both types of approval,
the Committee considers whether the subject services are consistent with the SEC’s rules on auditor independence and that
such services are compatible with maintaining the auditors independence. The Committee also considers whether a particular audit
firm is in the best position to provide effective and efficient services to the Funds. Reasons that the auditors are in the best
position include the auditors’ familiarity with the Funds’ business, personnel, culture, accounting systems, risk profile,
and other factors, and whether the services will enhance the Funds’ ability to manage and control risk or improve audit quality.
Such factors will be considered as a whole, with no one factor being determinative.
The appendices attached
to this Policy describe the audit, audit-related, tax-related, and other services that have the Committee’s general pre-approval.
For any service that has been approved through general pre-approval, the general pre-approval will remain in place for a period
12 months from the date of pre-approval, unless the Committee determines that a different period is appropriate. The Committee
will annually review and pre-approve the services that may be provided by the independent auditors without specific pre-approval.
The Committee will revise the list of services subject to general pre-approval as appropriate. This Policy does not serve as a
delegation to Fund management of the Committee’s duty to pre-approve services performed by the Funds’ independent auditors.
II. Audit Services
The annual
audit services engagement terms and fees are subject to the Committee’s specific pre-approval. Audit services are
those services that are normally provided by auditors in connection with statutory and regulatory filings or engagements or those
that generally only independent auditors can reasonably provide. They include the Funds’ annual financial statement audit
and procedures that the independent auditors must perform in order to form an opinion on the Funds’ financial statements
(e.g., information systems and procedural reviews and testing). The Committee will monitor the audit services engagement
and approve any changes in terms, conditions or fees deemed by the Committee to be necessary or appropriate.
The Committee may grant general pre-approval to other audit
services, such as statutory audits and services associated with SEC registration statements, periodic reports and other documents
filed with the SEC or issued in connection with securities offerings.
The Committee has pre-approved the audit services listed on
Appendix A. The Committee must specifically approve all audit services not listed on Appendix A.
III. Audit-related Services
Audit-related services
are assurance and related services that are reasonably related to the performance of the audit or the review of the Funds’
financial statements or are traditionally performed by the independent auditors. The Committee believes that the provision of audit-related
services will not impair the independent auditors’ independence, and therefore may grant pre-approval to audit-related services.
Audit-related services include accounting consultations related to accounting, financial reporting or disclosure matters not classified
as “audit services;” assistance with understanding and implementing new accounting and financial reporting guidance
from rulemaking authorities; agreed-upon or expanded audit procedures relating to accounting and/or billing records required to
respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting
requirements under Form N-SAR or Form N-CSR.
The Committee has pre-approved the audit-related services
listed on Appendix B. The Committee must specifically approve all audit-related services not listed on Appendix B.
IV. Tax Services
The Committee believes
the independent auditors can provide tax services to the Funds, including tax compliance, tax planning, and tax advice, without
compromising the auditors’ independence. Therefore, the Committee may grant general pre-approval with respect to tax services
historically provided by the Funds’ independent auditors that do not, in the Committee’s view, impair auditor independence
and that are consistent with the SEC’s rules on auditor independence.
The Committee will not
grant pre-approval if the independent auditors initially recommends a transaction the sole business purpose of which is tax avoidance
and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Committee may consult
outside counsel to determine
that tax planning and reporting positions are consistent with this Policy.
The Committee has pre-approved the tax-related services listed
on Appendix C. The Committee must specifically approve all tax-related services not listed on Appendix C.
V. Other Services
The Committee believes
it may grant approval of non-audit services that are permissible services for independent auditors to a Fund. The Committee has
determined to grant general pre-approval to other services that it believes are routine and recurring, do not impair auditor independence,
and are consistent with SEC rules on auditor independence.
The Committee has pre-approved the non-audit services listed
on Appendix D. The Committee must specifically approve all non-audit services not listed on Appendix D.
A list of the SEC’s prohibited non-audit services is
attached to this Policy as Appendix E. The SEC’s rules and relevant guidance should be consulted to determine the precise
definitions of these impermissible services and the applicability of exceptions to certain of the SEC’s prohibitions.
VI. Pre-approval of Fee levels and Budgeted Amounts
The Committee will annually
establish pre-approval fee levels or budgeted amounts for audit, audit-related, tax and non-audit services to be provided to the
Funds by the independent auditors. Any proposed services exceeding these levels or amounts require the Committee’s specific
pre-approval. The Committee considers fees for audit and non-audit services when deciding whether to pre-approve services. The
Committee may determine, for a pre-approval period of 12 months, the appropriate ratio between the total amount of fees for the
Fund’s audit, audit-related, and tax services (including fees for services provided to Fund affiliates that are subject to
pre-approval), and the total amount of fees for certain permissible non-audit services for the Fund classified as other services
(including any such services provided to Fund affiliates that are subject to pre-approval).
VII. Procedures
Requests or applications
for services to be provided by the independent auditors will be submitted to management. If management determines that the services
do not fall within those services generally pre-approved by the Committee and set out in the appendices to these procedures, management
will submit the services to the Committee or its delagee. Any such submission will include a detailed description of the services
to be rendered. Notwithstanding this paragraph, the Committee will, on a quarterly basis, receive from the independent auditors
a list of services provided for the previous calendar quarter on a cumulative basis by the auditors during the Pre-Approval Period.
VIII. Delegation
The Committee may delegate pre-approval authority to one or
more of the Committee’s members. Any member or members to whom such pre-approval authority is delegated must report any pre-approval
decisions, including any pre-approved services, to the Committee at its next scheduled meeting. The Committee will identify any
member to whom pre-approval authority is delegated in writing. The member will retain such authority for a period of 12 months
from the date of pre-approval unless
the Committee determines that a different period is appropriate. The period of delegated authority may be terminated by the Committee
or at the option of the member.
IX. Additional
Requirements
The Committee will take
any measures the Committee deems necessary or appropriate to oversee the work of the independent auditors and to assure the auditors’
independence from the Funds. This may include reviewing a formal written statement from the independent auditors delineating all
relationships between the auditors and the Funds, consistent with Independence Standards Board No. 1, and discussing with the auditors
their methods and procedures for ensuring independence.
Effective April 23,
2008, the KPMG LLP (“KPMG”) audit team for the ING Funds accepted the global responsibility for monitoring the auditor
independence for KPMG relative to the ING Funds. Using a proprietary system called Sentinel, the audit team is able to identify
and manage potential conflicts of interest across the member firms of the KPMG International Network and prevent the provision
of prohibited services to the ING entities that would impair KPMG independence with the respect to the ING Funds. In addition to
receiving pre-approval from the ING Funds Audit Committee for services provided to the ING Funds and for services for ING entities
in the Investment Company Complex, the audit team has developed a process for periodic notification via email to the ING Funds’
Audit Committee Chairpersons regarding requests to provide services to ING Groep NV and its affiliates from KPMG offices worldwide.
Additionally, KPMG provides a quarterly summary of the fees for services that have commenced for ING Groep NV and Affiliates at
each Audit Committee Meeting.
Last Approved: November
21, 2013
Appendix A
Pre-Approved Audit Services for the Pre-Approval Period October 1, 2013through December 31, 2014
| Service |
| |
The Fund(s) |
Fee Range |
| Statutory audits or financial audits (including tax services associated with audit services) |
√ |
As presented to Audit Committee[1] |
| Services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings (e.g., consents), and assistance in responding to SEC comment letters. |
√ |
Not to exceed $9,750 per filing |
| Consultations by Fund management with respect to accounting or disclosure treatment of transactions or events and/or the actual or potential effect of final or proposed rules, standards or interpretations by the SEC, Financial Accounting Standards Board, or other regulatory or standard setting bodies. |
√ |
Not to exceed $8,000 during the Pre-Approval Period |
| Seed capital audit and related review and issuance of consent on the N-2 registration statement |
√ |
Not to exceed $13,750 per audit |
| Audit of summary portfolio of investments |
√ |
Not to exceed $525 per fund |
| ____________________ |
| (1) |
|
For new Funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing Funds, pro-rated in accordance with inception dates as provided in the auditors’ Proposal or any Engagement Letter covering the period at issue. Fees in the Engagement Letter will be controlling. |
Appendix B
Pre-Approved Audit-Related Services for the Pre-Approval Period October 1, 2013through December 31, 2014
| Service |
| |
The Fund(s) |
Fund Affiliates |
Fee Range |
| Services related to Fund mergers (Excludes tax services - See Appendix C for tax services associated with Fund mergers) |
√ |
√ |
Not to exceed $10,000 per merger |
| Consultations by Fund management with respect to accounting or disclosure treatment of transactions or events and/or the actual or potential effect of final or proposed rules, standards or interpretations by the SEC, Financial Accounting Standards Board, or other regulatory or standard setting bodies. [Note: Under SEC rules some consultations may be “audit” services and others may be “audit-related” services.] |
√ |
|
Not to exceed $5,000 per occurrence during the Pre-Approval Period |
| Review of the Funds’ semi-annual and quarterly financial statements |
√ |
|
Not to exceed $2,525 per set of financial statements per fund |
| Reports to regulatory or government agencies related to the annual engagement |
√ |
|
Up to $5,000 per occurrence during the Pre-Approval Period |
| Regulatory compliance assistance |
√ |
√ |
Not to exceed $5,000 per quarter |
| Training courses |
|
√ |
Not to exceed $5,000 per course |
| For Prime Rate Trust, agreed upon procedures for quarterly reports to rating agencies |
√ |
|
Not to exceed $9,450 per quarter |
Appendix C
Pre-Approved Tax Services for the Pre-Approval Period October 1, 2013 through December 31, 2014
| Service |
| |
The Fund(s) |
Fund Affiliates |
Fee Range |
| Preparation of federal and state income tax returns and federal excise tax returns for the Funds including assistance and review with excise tax distributions |
√ |
|
As presented to Audit Committee[2] |
| Review of IRC Sections 851(b) and 817(h) diversification testing on a real-time basis |
√ |
|
As presented to Audit Committee[2] |
| Assistance and advice regarding year-end reporting for 1099’s |
√ |
|
As presented to Audit Committee[2] |
| Tax assistance and advice regarding statutory, regulatory or administrative developments |
√ |
√ |
Not to exceed $5,000 for the Funds or for the Funds’ investment adviser during the Pre-Approval Period |
| ____________________ |
| (1) |
|
For new Funds launched during the Pre-Approval Period, the fee ranges pre-approved will be the same as those for existing Funds, pro-rated in accordance with inception dates as provided in the auditors’ Proposal or any Engagement Letter covering the period at issue. Fees in the Engagement Letter will be controlling. |
Appendix C, continued
| Service |
| |
The Fund(s) |
Fund Affiliates |
Fee Range |
| Tax training courses |
|
√ |
Not to exceed $5,000 per course during the Pre-Approval Period |
| Tax services associated with Fund mergers |
√ |
√ |
Not to exceed $4,000 per fund per merger during the Pre-Approval Period |
| Other tax-related assistance and consultation, including, without limitation, assistance in evaluating derivative financial instruments and international tax issues, qualification and distribution issues, and similar routine tax consultations. |
√ |
|
Not to exceed $120,000 during the Pre-Approval Period |
Appendix D
Pre-Approved Other Services for the Pre-Approval Period October 1, 2013 through December 31, 2014
| Service |
| |
The Fund(s) |
Fund Affiliates |
Fee Range |
| Agreed-upon procedures for Class B share 12b-1 programs |
|
√ |
Not to exceed $60,000 during the Pre-Approval Period |
|
Security counts performed
pursuant to Rule 17f-2 of the 1940 Act (i.e., counts for Funds holding securities with affiliated sub-custodians)
Cost to be borne 50%
by the Funds and 50% by ING Investments, LLC. |
√
|
√
|
Not to exceed $5,300 per Fund during the Pre-Approval Period |
| Agreed upon procedures for 15 (c) FACT Books |
√ |
|
Not to exceed $50,000 during the Pre-Approval Period |
Appendix E
Prohibited Non-Audit Services
Dated: October 1, 2013 to December 31, 2014
| · | Bookkeeping or other services related to the accounting records or financial
statements of the Funds |
| · | Financial information systems design and implementation |
| · | Appraisal or valuation services, fairness opinions, or contribution-in-kind
reports |
| · | Internal audit outsourcing services |
| · | Broker-dealer, investment adviser, or investment banking services |
| · | Expert services unrelated to the audit |
| · | Any other service that the Public Company Accounting Oversight Board
determines, by regulation, is impermissible |
EXHIBIT
A
ING ASIA PACIFIC HIGH DIVIDEND EQUITY INCOME
FUND
ING BALANCED PORTFOLIO, INC.
ING EMERGING MARKETS LOCAL BOND FUND
ING EMERING MARKETS HIGH DIVIDEND EQUITY FUND
ING EQUITY TRUST
ING FUNDS TRUST
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY
FUND
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY
FUND
ING GLOBAL STRATEGIC INCOME FUND
ING INFRASTRUCTURE, INDUSTRIALS, AND MATERIALS
FUND
ING INTERMEDIATE BOND PORTFOLIO
ING INTERNATIONAL HIGH DIVIDEND EQUITY INCOME
FUND
ING INVESTORS TRUST
ING MONEY MARKET PORTFOLIO
ING MUTUAL FUNDS
ING PARTNERS, INC.
ING PRIME RATE TRUST
ING RISK MANAGED NATURAL RESOURCES FUNDING INVESTORS
TRUST
ING SENIOR INCOME FUND
ING SEPARATE PORTFOLIOS TRUST
ING SERIES FUND, INC.
ING SHORT DURATION HIGH INCOME FUND
ING STRATEGIC ALLOCATIONS PORTFOLIOS, INC.
ING VARIABLE FUNDS
ING VARIABLE INSURANCE TRUST
ING VARIABLE PORTFOLIOS INC,
ING VARIABLE PRODUCTS TRUST
|
|
|
| (e)(2) |
|
Percentage of services referred to in 4(b) — (4)(d) that were approved by the audit committee |
|
|
|
|
100% of the services were approved by the audit committee. |
|
|
| (f) |
|
Percentage of hours expended attributable to work performed by other than full time employees of KPMG if greater than 50%. |
|
|
|
|
Not applicable. |
|
|
| (g) |
|
Non-Audit Fees: The following table presents
(i) the aggregate non-audit fees (i.e., fees for audit-related, tax, and other services) billed to each Registrant by the
independent registered public accounting firm for each Registrant's fiscal years ended February 28, 2014 and February 28,
2013; and (ii) the aggregate non-audit fees billed to the investment adviser, or any of its affiliates that provide ongoing services to the registrant, by the independent
registered public accounting firm for the same time periods. |
|
|
| Registrant/Investment
Adviser | |
| 2014 | | |
| 2013 | |
| Voya Global Advantage and Premium
Opportunity | |
$ | 12,967 | | |
$ | 13,531 | |
| Voya Investments, LLC (1) | |
$ | 345,500 | | |
$ | 461,250 | |
_____________
(1) Each Registrant's investment adviser
and any of its affiliates, which are subsidiaries of Voya Financial, Inc.
|
|
|
| (h) |
|
Principal Accountants Independence: The Registrant’s Audit committee has considered whether the provision of non-audit services that were rendered to the
registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of
Regulation S-X is compatible with maintaining KPMG’s independence. |
| Item 5. |
Audit Committee of Listed Registrants. |
|
|
|
| a. |
|
The registrant has a separately-designated standing audit committee.
The members are J. Michael Earley, Colleen D. Baldwin, Peter S. Drotch, Patrick W. Kenny, Joseph E. Obermeyer, and Roger B. Vincent. |
|
|
| b. |
|
Not applicable. |
13
| Item 6. |
Schedule of Investments. |
Report of Independent Registered Public
Accounting Firm
The Shareholders and Board of Trustees
ING Global Advantage and Premium Opportunity
Fund
We have audited, in accordance with the standards
of the Public Company Accounting Oversight Board (United States), the statement of assets and liabilities, including the summary
portfolio of investments, of ING Global Advantage and Premium Opportunity Fund as of February 28, 2014, and the related statement
of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then
ended, and the financial highlights for each of the years or periods in the nine-year period then ended, and have issued our unqualified
report thereon dated April 24, 2014 (which report and financial statements are included in Item 1 of this Certified Shareholder
Report on Form N-CSR). In connection with our audits of the aforementioned financial statements and financial highlights, we also
audited the related portfolio of investments included in Item 6 of this Form N-CSR. The portfolio of investments is the responsibility
of management. Our responsibility is to express an opinion on the portfolio of investments based on our audits.
In our opinion, the portfolio of investments,
when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the
information set forth therein.
Boston, Massachusetts
April 24, 2014
ING GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND |
PORTFOLIO OF INVESTMENTS
AS OF FEBRUARY 28, 2014 |
Shares
|
|
|
|
|
|
|
|
Value
|
|
Percentage
of Net
Assets
|
| |
COMMON STOCK: 98.4% |
|
|
| 54,486 |
|
|
|
|
|
Banco do Brasil S.A. |
|
$ |
481,015 |
|
|
|
0.2 |
|
| 67,577 |
|
|
|
|
|
Petroleo Brasileiro SA ADR |
|
|
756,862 |
|
|
|
0.3 |
|
| 90,496 |
|
|
|
|
|
Sul America SA |
|
|
577,770 |
|
|
|
0.3 |
|
| |
|
|
|
|
|
|
|
|
1,815,647 |
|
|
|
0.8 |
|
| |
|
|
| 85,000 |
|
|
|
|
|
Barrick Gold Corp. |
|
|
1,732,300 |
|
|
|
0.7 |
|
| |
|
|
| 1,084,000 |
|
|
|
|
|
Bank of China Ltd. |
|
|
456,482 |
|
|
|
0.2 |
|
| 206,000 |
|
|
|
|
|
China Resources Enterprise |
|
|
580,901 |
|
|
|
0.2 |
|
| |
|
|
|
|
|
|
|
|
1,037,383 |
|
|
|
0.4 |
|
| |
|
|
| 95,163 |
|
|
|
|
|
AXA S.A. |
|
|
2,478,742 |
|
|
|
1.0 |
|
| 8,196 |
|
|
|
@ |
|
Criteo SA ADR |
|
|
438,240 |
|
|
|
0.2 |
|
| 49,657 |
|
|
|
|
|
Total S.A. |
|
|
3,221,703 |
|
|
|
1.3 |
|
| 30,692 |
|
|
|
|
|
Vinci S.A. |
|
|
2,288,875 |
|
|
|
1.0 |
|
| |
|
|
|
|
|
|
|
|
8,427,560 |
|
|
|
3.5 |
|
| |
|
|
| 14,076 |
|
|
|
|
|
Allianz AG |
|
|
2,510,252 |
|
|
|
1.0 |
|
| 19,938 |
|
|
|
|
|
Bayerische Motoren Werke AG |
|
|
2,313,355 |
|
|
|
1.0 |
|
| 46,084 |
|
|
|
|
|
Deutsche Bank AG |
|
|
2,228,828 |
|
|
|
0.9 |
|
| 9,220 |
|
|
|
@ |
|
Linde AG |
|
|
1,908,346 |
|
|
|
0.8 |
|
| 17,427 |
|
|
|
|
|
Siemens AG |
|
|
2,323,498 |
|
|
|
1.0 |
|
| |
|
|
|
|
|
|
|
|
11,284,279 |
|
|
|
4.7 |
|
| |
|
|
| 448,125 |
|
|
|
|
|
AIA Group Ltd. |
|
|
2,195,608 |
|
|
|
0.9 |
|
| |
|
|
| 23,958 |
|
|
|
@ |
|
Check Point Software Technologies |
|
|
1,615,248 |
|
|
|
0.7 |
|
| 35,220 |
|
|
|
|
|
Nice Systems Ltd. ADR |
|
|
1,446,838 |
|
|
|
0.6 |
|
| |
|
|
|
|
|
|
|
|
3,062,086 |
|
|
|
1.3 |
|
| |
|
|
| 173,400 |
|
|
|
|
|
Itochu Corp. |
|
|
2,160,895 |
|
|
|
0.9 |
|
| 61,100 |
|
|
|
|
|
Japan Tobacco, Inc. |
|
|
1,946,019 |
|
|
|
0.8 |
|
| 6,000 |
|
|
|
|
|
Keyence Corp. |
|
|
2,583,758 |
|
|
|
1.1 |
|
| 455,800 |
|
|
|
|
|
Mitsubishi UFJ Financial Group, Inc. |
|
|
2,641,204 |
|
|
|
1.1 |
|
| 56,700 |
|
|
|
|
|
Sumitomo Mitsui Financial Group, Inc. |
|
|
2,545,719 |
|
|
|
1.1 |
|
| 68,189 |
|
|
|
|
|
Tokio Marine Holdings, Inc. |
|
|
2,025,793 |
|
|
|
0.8 |
|
| 60,600 |
|
|
|
|
|
Toyota Motor Corp. |
|
|
3,487,719 |
|
|
|
1.4 |
|
| |
|
|
|
|
|
|
|
|
17,391,107 |
|
|
|
7.2 |
|
| |
|
|
| 100 |
|
|
|
|
|
Malayan Banking BHD |
|
|
299 |
|
|
|
0.0 |
|
| |
|
|
| 12,673 |
|
|
|
@ |
|
Fomento Economico Mexicano SAB de CV ADR |
|
|
1,085,062 |
|
|
|
0.5 |
|
| 114,489 |
|
|
|
|
|
Grupo Financiero Banorte |
|
|
741,201 |
|
|
|
0.3 |
|
| |
|
|
|
|
|
|
|
|
1,826,263 |
|
|
|
0.8 |
|
| |
|
|
| 18,826 |
|
|
|
@ |
|
Airbus Group NV |
|
|
1,383,284 |
|
|
|
0.6 |
|
| 60,904 |
|
|
|
|
|
Reed Elsevier NV |
|
|
1,332,875 |
|
|
|
0.5 |
|
| 27,441 |
|
|
|
|
|
Royal Dutch Shell PLC |
|
|
1,001,416 |
|
|
|
0.4 |
|
| |
|
|
|
|
|
|
|
|
3,717,575 |
|
|
|
1.5 |
|
| |
|
|
| 58,666 |
|
|
|
|
|
Subsea 7 SA |
|
|
1,119,170 |
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