ING (L) RENTA FUND - ING Investment Management, Asia Pacific
ING (L) RENTA FUND - ING Investment Management, Asia Pacific
ING (L) RENTA FUND - ING Investment Management, Asia Pacific
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<strong>ING</strong> (L) <strong>RENTA</strong> <strong>FUND</strong> Semi-annual report and unaudited financial statements<br />
(Report dedicated to the Singapore market)<br />
for the period ended September 30, 2010<br />
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Notes to the financial statements<br />
Money market instruments and other short-term securities are valued using the straight-line amortization method provided these instruments<br />
or securities have an initial or residual maturity at the time of their purchase by the Company of less than 12 months and if it appears that the<br />
last known price on the main market for the security in question cannot be considered as representative of the price of that security. These<br />
instruments and securities are shown at acquisition cost in the securities portfolio, accrued interest calculated through the straight-line<br />
amortization method being included in the item "Other assets" in the statement of net assets and in the item "Interest on bonds and other<br />
debt instruments" in the statement of operations and changes in net assets.<br />
<strong>Investment</strong>s in open-ended investment funds, either listed or not, are valued on the basis of their last available net asset value per share.<br />
Financial derivative instruments valuation<br />
Financial derivative instruments listed on a regulated market are valued at the last available published price applicable at the closing date.<br />
Financial derivative instruments not listed on a regulated market are valued by means of an actuarial method recognized in the market.<br />
More specifically, swaps are valued under the responsibility of the Board of Directors at their fair value, which depends on several<br />
parameters (level and volatility of the index, market interest rate, remaining life of the swap).<br />
Positive fair values of financial derivative instruments are disclosed as assets and negative fair values as liabilities in the statement of net<br />
assets, under the item "Total financial derivative instruments".<br />
Interest to be received on swaps are included in the item "Other Assets".<br />
Interest to be paid on swaps are included in the item "Current Liabilities".<br />
Income<br />
Dividends are accounted for on the ex-date.<br />
Interest is accrued on a daily basis.<br />
3- SW<strong>ING</strong><strong>ING</strong> S<strong>ING</strong>LE PRIC<strong>ING</strong><br />
Large transactions in or out of a sub-fund can create "dilution" of a sub-fund’s assets because the price at which an investor buys or sells shares<br />
in a sub-fund may not entirely reflect the dealing and other costs that arise when the portfolio manager has to trade in securities to<br />
accommodate large cash inflows and outflows. In order to counter this and enhance the protection of existing shareholders, the mechanism<br />
known as "Swinging Single Pricing" (SSP) may be applied if the net capital movement is greater than a threshold determined by the Board of<br />
Directors. Existing investors will no longer have to indirectly bear these transactions costs because with SSP the charge of the transaction costs is<br />
directly integrated into the calculation of the net asset value, with these costs borne by incoming and outgoing investors. By using SSP, the net<br />
asset value of the relevant sub-fund is adjusted when the threshold is reached by an amount, called the "swing factor", to compensate<br />
transactions costs resulting from the net capital flows (difference between in and outflows). Where there are net capital inflows, the swing<br />
factor is added to the net asset value to take account of subscriptions of sub-fund shares, where there are net outflows, the swing factor is<br />
deducted from the net asset value to take account of shares redemptions. In both cases, the same net asset value applies to all incoming and<br />
outgoing investors on a particular date. All sub-funds of the Company may be included in the Swinging Single Pricing.<br />
As at September, 30, 2010, Swinging Single Pricing was applied on the sub-fund <strong>ING</strong> Renta Fund - World as follows:<br />
Net assets<br />
Net asset<br />
value per<br />
share<br />
swung<br />
unsung<br />
swung<br />
unsung<br />
Capitalisation<br />
P (EUR)<br />
27,738,184.79<br />
27,779,891.57<br />
737.01<br />
738.12<br />
Capitalisation<br />
V (EUR)<br />
2,891,440.60<br />
2,895,788.13<br />
133.08<br />
133.28<br />
Capitalisation<br />
I (EUR)<br />
57,272.52<br />
57,358.63<br />
14,818.25<br />
14,840.51<br />
Capitalisation<br />
X (EUR)<br />
1,606,110.46<br />
1,608,525.39<br />
729.93<br />
731.03<br />
Distribution<br />
P (EUR)<br />
10,780,902.66<br />
10,797,112.39<br />
224.89<br />
225.23<br />
Total<br />
43,073,911.03<br />
43,138,676.41<br />
94 <strong>ING</strong> INVESTMENT MANAGEMENT