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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21553

ING Global Equity Dividend and Premium Opportunity Fund

(Exact name of registrant as specified in charter)

 

7337 E. Doubletree Ranch Rd., Scottsdale, AZ   85258
(Address of principal executive offices)   (Zip code)

The Corporation Trust Company, 1209 Orange

Street, Wilmington, DE 19801

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-992-0180

Date of fiscal year end: February 29

Date of reporting period: August 31, 2012

 

 

 



Item 1. Reports to Stockholders.

The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1):



Semi-Annual Report

August 31, 2012

ING Global Equity Dividend and
Premium Opportunity Fund

   E-Delivery Sign-up – details inside

This report is submitted for general information to shareholders of the ING Funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the fund’s investment objectives, risks, charges, expenses and other information. This information should be read carefully.

 
 
MUTUAL FUNDS






TABLE OF CONTENTS


President’s Letter
                 1    
Market Perspective
                 2    
Portfolio Managers’ Report
                 4    
Statement of Assets and Liabilities
                 6    
Statement of Operations
                 7    
Statements of Changes in Net Assets
                 8    
Financial Highlights
                 9    
Notes to Financial Statements
                 10    
Summary Portfolio of Investments
                 19    
Shareholder Meeting Information
                 24    
Additional Information
                 25    
 

 

 
           
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Sign up now for on-line prospectuses, fund reports, and proxy statements. In less than five minutes, you can help reduce paper mail and lower fund costs.
 
Just go to www.inginvestment.com, click on the E-Delivery icon from the home page, follow the directions and complete the quick 5 Steps to Enroll.
 
You will be notified by e-mail when these communications become available on the internet. Documents that are not available on the internet will continue to be sent by mail.

 

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio securities is available (1) without charge, upon request, by calling Shareholder Services toll-free at (800) 992-0180; (2) on the ING Funds’ website at www.inginvestment.com; and (3) on the U.S. Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov. Information regarding how the Fund voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the ING Funds’ website at www.inginvestment.com and on the SEC’s website at www.sec.gov.

QUARTERLY PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This report contains a summary portfolio of investments for the Fund. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. The Fund’s Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C., and information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Fund’s Forms N-Q, as well as a complete portfolio of investments, are available without charge upon request from the Fund by calling Shareholder Services toll-free at (800) 992-0180.



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PRESIDENT’S LETTER



Dear Shareholder,

ING Global Equity Dividend and Premium Opportunity Fund (the “Fund”) is a diversified, closed-end management investment company whose shares are traded on the New York Stock Exchange under the symbol “IGD.” The primary objective of the Fund is to provide a high level of income, with a secondary objective of capital appreciation.

The Fund seeks to achieve its objectives by investing in a portfolio of global common stocks that have a history of attractive dividend yields and employing an option strategy of writing call options on a portion of the equity portfolio. During this reporting period, the Fund partially hedged currency exposure to reduce volatility of total return.

For the period ended August 31, 2012, the Fund made monthly distributions totaling $0.56 per share, which were characterized as $0.38 per share return of capital and $0.18 per share net investment income.

Based on net asset value (“NAV”), the Fund provided a total return of 0.95% including reinvestments for the period ended August 31, 2012.(1) This NAV return reflects a decrease in the Fund’s NAV from $10.01 on February 29, 2012 to $9.51 on August 31, 2012. Based on its share price, the Fund provided a total return of 2.93% including reinvestments for the period ended August 31, 2012.(2) This share price return reflects a decrease in the Fund’s share price from $9.56 on February 29, 2012 to $9.26 on August 31, 2012.

The global equity markets have witnessed a challenging and turbulent period. Please read the Market Perspective and Portfolio Managers’ Report for more information on the market and the Fund’s performance.

At ING Funds our mission is to help you grow, protect and enjoy your wealth. We seek to assist you and your financial advisor by offering a range of global investment solutions. We invite you to visit our website at www.inginvestment.com. Here you will find information on our products and services, including current market data and fund statistics on our open- and closed-end funds. You will see that we offer a broad variety of equity, fixed income and multi-asset funds that aim to fulfill a variety of investor needs.

We thank you for trusting ING Funds with your investment assets, and we look forward to serving you in the months and years ahead.

Sincerely,

 

Shaun Mathews
President and Chief Executive Officer
ING Funds
October 5, 2012


The views expressed in the President’s Letter reflect those of the President as of the date of the letter. Any such views are subject to change at any time based upon market or other conditions and ING Funds disclaim any responsibility to update such views. These views may not be relied on as investment advice and because investment decisions for an ING Fund are based on numerous factors, may not be relied on as an indication of investment intent on behalf of any ING Fund. Reference to specific company securities should not be construed as recommendations or investment advice. International investing does pose special risks including currency fluctuation, economic and political risks not found in investments that are solely domestic.

For more complete information, or to obtain a prospectus for any ING Fund, please call your Investment Professional or the Fund’s Shareholder Service Department at (800) 992-0180 or log on to www.inginvestment.com. The prospectus should be read carefully before investing. Consider the fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this information and other information about the fund. Check with your Investment Professional to determine which funds are available for sale within their firm. Not all funds are available for sale at all firms.


(1)  
  Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends, capital gain distributions, and return of capital distributions/allocations, if any, in accordance with the provisions of the Fund’s dividend reinvestment plan.

(2)  
  Total investment return at market value measures the change in the market value of your investment assuming reinvestment of dividends, capital gain distributions, and return of capital distributions/allocations, if any, in accordance with the provisions of the Fund’s dividend reinvestment plan.

1



MARKET PERSPECTIVE:  SIX MONTHS ENDED AUGUST 31, 2012


As our new fiscal year started, global equities in the form of the MSCI World IndexSM measured in local currencies including net reinvested dividends were enjoying what would become the best first quarter rally since 1998. But in the two months from early April the MSCI World IndexSM slumped 11% as, for the third consecutive year, the basis of the earlier optimism was undermined by events. From there the recovery was almost as dramatic and for the six month period the index gained just 0.72%. (The MSCI World IndexSM returned (0.14)% for the six months ended August 31, 2012, measured in U.S. dollars.)

Much of the first quarter’s upbeat sentiment rested on a sharp improvement in the employment situation, probably the most important driver of economic activity. In March, the Bureau of Labor Statistics announced a three-month average of 245,000 new jobs created and the unemployment rate down to 8.3%. But the deterioration was fast, culminating in the July report which showed only 80,000 jobs created the prior month with the three month average down to 75,000 and the labor force participation rate languishing near decades-low levels.

By the end of July, the trend in other economic statistics was mixed to negative. Retail sales had fallen for three months. The national purchasing managers’ index of manufacturing activity signaled contraction. Personal spending was practically stagnant; wages & salaries sluggish. Gross domestic product (“GDP”) growth was reported at 1.5% (quarter over quarter annualized) in the second quarter, down from 2.0% in the first.

Also clearly slowing was China, responsible for much of the global GDP growth in recent years. GDP increased by 7.6% in the second quarter of 2012 over the same quarter in 2011, the lowest rise in three years.

And yet despite all this gloom, global equities ended July having already recovered 8% (in fits and starts) from the low point in early June. What was propelling stocks higher was the subject of much debate.

The answer seemed to lie in a sense that the euro zone’s enduring sovereign debt crisis was approaching some kind of end game. Disillusionment with the European Central Bank’s (“ECB”) Longer Term Refinancing Operations (“LTRO”) had set in, amid a growing backlash against fiscal austerity. Attention became focused on Spain, with its uncompetitive markets, restrictive practices, nearly 25% unemployed and shaky banking system.

Matters came to a head after a recapitalization bailout for Spanish banks worth up to €100 billion was finally requested in June. This was approved by euro zone leaders, but it took a number of attempts before a workable plan emerged in the last few days of June.

Attention returned to Greece in July where bailout creditors prepared to examine the country’s fiscal state. The continuation of Greece’s bailout would rest on the outcome, and it did not look good. With prospects for the euro looking increasingly tenuous, ECB President Draghi came out on July 26 with a statement unprecedented in its explicitness, that the ECB was “ready to do whatever it takes to preserve the euro.” Details would be scarce until September, but the plan appeared to imply another step towards the mutualization of euro zone bonds, which many consider to be a key part of the ultimate solution. In early August, German Chancellor Merkel crucially expressed support.

This and rather better economic news from the U.S. in August on employment, a rise in home prices and an upward revision to GDP growth supported markets until the end of our reporting period.

In U.S. fixed income markets, the Barclays Capital U.S. Aggregate Bond Index (“BCAB”) of investment grade bonds rose 2.97% in the six months through August. While a sub-index of the BCAB, the Barclays Capital U.S Treasury Index, underperformed slightly with a return of 2.70%, long-dated Treasuries returned a remarkable 8.75%. Another sub-index of the BCAB, the Barclays Capital U.S. Corporate Investment Grade Bond Index, outperformed, rising 4.69%. The Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index (not part of the BCAB) was slightly stronger, gaining 4.80%.

U.S. equities, represented by the S&P 500® Index including dividends, rose by 4.14% in the six months, not helped by Goldman Sachs’ recommendation on June 21st to sell the index short. With almost all S&P 500® companies having reported, operating earnings per share reached a new record in the second quarter and stood just over 2% higher than in the same quarter of 2011. By sector, only telecommunications showed a double-digit return, returning 19.99%, followed by consumer staples with a return of 8.83%. Energy was the worst performer, losing 3.16% followed by materials losing 2.65%.

In currency markets, the ongoing euro zone crisis drove the dollar up 7.18% against the euro. But the dollar barely moved against the pound, gaining just 0.16%. Since the U.K. prints its own currency, U.K. government bonds acquired their own “safe haven” status as the euro zone crisis played out, despite the U.K.’s close links to the euro zone. The dollar lost 2.30% to the yen, perhaps the ultimate safe haven with its strength apparently impervious to years of low interest rates and supported by a still considerable, if falling, current account surplus.

In international markets, the MSCI Japan® Index slumped 11.94% for the six months through August, falling harder than other markets in April and May as investors fretted about the effect of the euro zone crisis and the slowdown in China on Japan’s export-focused economy. The MSCI Europe ex UK® Index edged up 1.34%, the relief from LTRO all too short as fears for the euro loomed large. Sentiment was also depressed by flat to falling GDP and unemployment reaching 11.3%. The MSCI UK® Index slipped 0.20%. The U.K. economy re-entered recession in the face of slumping construction activity and austerity measures aimed at cutting the budget deficit.

Parentheses denote a negative number.

Past performance does not guarantee future results. The performance quoted represents past performance. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. The Fund’s performance is subject to change since the period’s end and may be lower or higher than the performance data shown. Please call (800) 992-0180 or log on to www.inginvestment.com to obtain performance data current to the most recent month end.

Market Perspective reflects the views of ING’s Chief Investment Risk Officer only through the end of the period, and is subject to change based on market and other conditions.

2



BENCHMARK DESCRIPTIONS


Index         Description
MSCI World IndexSM
           
An unmanaged index that measures the performance of over 1,400 securities listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand and the Far East.
Barclays Capital U.S. Aggregate Bond Index
           
An unmanaged index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities.
Barclays Capital U.S. Corporate Investment Grade Bond Index
           
An unmanaged index consisting of publicly issued, fixed rate, nonconvertible, investment grade debt securities.
Barclays Capital U.S. Treasury Index
           
An unmanaged index that includes public obligations of the U.S. Treasury. Treasury bills, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS and STRIPS, are excluded.
Barclays Capital High Yield Bond — 2% Issuer Constrained Composite Index
           
An unmanaged index that includes all fixed-income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million, and at least one year to maturity.
S&P 500® Index
           
An unmanaged index that measures the performance of securities of approximately 500 large-capitalization companies whose securities are traded on major U.S. stock markets.
MSCI Japan® Index
           
A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan.
MSCI Europe ex UK® Index
           
A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe, excluding the UK.
MSCI UK® Index
           
A free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK.
Chicago Board Options Exchange BuyWrite Monthly Index (“CBOE BuyWrite Monthly Index”)
           
A passive total return index based on selling the near-term, at-the-money S&P 500® Index call option against the S&P 500® stock index portfolio each month, on the day the current contract expires.
 

3



ING GLOBAL EQUITY DIVIDEND
AND PREMIUM OPPORTUNITY FUND
PORTFOLIO MANAGERS’ REPORT


 
Geographic Diversification
as of August 31, 2012

(as a percentage of net assets)
 
 
                      
 
United States
                 39.9 %  
 
United Kingdom
                 14.7 %  
 
France
                 8.1 %  
 
Japan
                 8.0 %  
 
Germany
                 5.9 %  
 
Switzerland
                 3.9 %  
 
Netherlands
                 3.8 %  
 
Canada
                 3.2 %  
 
Australia
                 2.8 %  
 
Sweden
                 1.7 %  
 
Countries between 0.5%–1.7%ˆ
                 6.8 %  
 
Assets in Excess of Other Liabilities
                 1.2 %  
 
Net Assets
                 100.0 %  
 
 
                      
 
ˆ  Includes 7 countries, which each represents 0.5%–1.7% of net assets.
 
Portfolio holdings are subject to change daily.
 

ING Global Equity Dividend and Premium Opportunity Fund (the “Fund”) seeks to provide investors with a high level of income from a portfolio of global common stocks with historically attractive dividend yields and premiums from call option writing. Under normal market conditions, the Fund will invest at least 80% of its managed assets in a portfolio of common stocks of dividend paying companies located throughout the world, including the U.S. The Fund’s secondary investment objective is capital appreciation.

The Fund is managed by Bruno Springael, Nicolas Simar, Willem van Dommelen, Edwin Cuppen, Bas Peeters, Alexander van Eekelen, and Herman Klein, Portfolio Managers, ING Investment Management Advisors B.V. — the Sub-Adviser.

Equity Portfolio Construction: The stock selection process begins with constructing an eligible universe of global common stocks with market capitalizations typically over $1 billion that have a history of paying dividend yields. Through a multi-step screening process of various fundamental factors and fundamental analysis the portfolio managers construct a portfolio generally consisting of 65 to 90 common stocks with a history of attractive dividend yields, and stable or growing dividends that are supported by business fundamentals. The portfolio generally seeks to target a dividend yield higher than that of the MSCI World IndexSM dividend yield. Stocks that do not pay dividends may also be selected for portfolio construction and risk control purposes.

The Fund’s Integrated Option Strategy: The Fund’s option strategy is designed to seek gains and lower volatility of total returns over a market cycle by primarily selling call options on selected indices and/or on individual securities and/or exchange traded funds (“ETFs”). Currently, the Fund implements its call writing strategy on regional equity indices.

The Fund’s call option writing is determined based on stock outlook, market opportunities and option price volatility. The Fund seeks to sell call options that are generally short-term (between 10 days and three months until expiration) and at- or near-the-money. The Fund typically maintains its call positions until expiration, but it retains the option to buy back the call options and sell new call options.

The Fund may seek to, and during the reporting period sought to, partially hedge the foreign currency risk inherent in its international equity holdings. Such currency hedges are generally implemented by buying out-of-the-money puts on international currencies versus the U.S. dollar and financing them by writing out-of-the-money FX calls. The Fund may also hedge currency exposure by selling the international currencies forward.

The Fund may also invest in other derivative instruments such as futures for investment, hedging and risk-management purposes to gain or reduce exposure to securities, security markets, market indices consistent with its investment objectives and strategies. Such derivative instruments are acquired to enable the Fund to make market directional tactical decisions to enhance returns, to protect against a decline in its assets or as a substitute for the purchase or sale of equity securities.

Additionally, the Fund retains the ability to partially hedge against significant market declines by buying out-of-the-money put options on regional or country indices, such as the S&P 500® Index, the Financial Times Stock Exchange 100 Index (“FTSE 100”), the Nikkei All Stock Index (“Nikkei”), the Euro Stoxx 50 (Price) Index (“EuroStoxx 50”) or any other broad-based global or regional securities index with an active derivatives market.

Top Ten Holdings
as of August 31, 2012

(as a percentage of net assets)
 
                        
Metlife, Inc.
                    1.8 %    
Deutsche Telekom AG
                 1.7 %    
JPMorgan Chase & Co.
                 1.7 %    
Telefonaktiebolaget LM Ericsson
                 1.7 %    
Novartis AG
                 1.7 %    
ExxonMobil Corp.
                 1.7 %    
General Electric Co.
                 1.7 %    
Microsoft Corp.
                 1.7 %    
Abbott Laboratories
                 1.6 %    
HSBC Holdings PLC
                 1.6 %    
 
                        
Portfolio holdings are subject to change daily.

Performance: Based on net asset value (“NAV”) as of August 31, 2012, the Fund provided a total return of 0.95% for the period. This NAV return reflects a decrease in the Fund’s NAV from $10.01 on February 29, 2012 to $9.51 on August 31, 2012. Based on its share price, the Fund provided a total return of 2.93% for the period. This share price return reflects a decrease in the Fund’s share price from $9.56 on February 29, 2012 to $9.26 on August 31, 2012. The reference indices, the MSCI World IndexSM and the Chicago Board Options Exchange (“CBOE”) BuyWrite Monthly Index (“BXM Index”), returned (0.14)% and 3.51%, respectively, for the reporting period. During the period, the Fund made monthly distributions totaling $0.56 per share, which were characterized as $0.38 per share return of capital and $0.18 per share net investment income. As of August 31, 2012, the Fund had 97,548,925 shares outstanding.

Equity Portfolio: For the six months ended August 31, 2012, the Fund’s equity portfolio outperformed its reference index, the MSCI World IndexSM. Stock selection detracted from the result but positive sector allocation overcame that drag as our overweights in the more defensive and typically dividend paying sectors of telecommunications, utilities and health care delivered good results. Stock picking was negative within the information technology (“IT”) sector, where priority on paying dividends has been historically low. The largest detractor from performance at stock level was Apple Inc., which is the largest weighted stock in the reference index. The headwind within IT was more than offset by stock selection within financials and health care. The best stock contribution came from the UK energy sector and was Ensco PLC.

4



PORTFOLIO MANAGERS’ REPORT ING GLOBAL EQUITY DIVIDEND
AND PREMIUM OPPORTUNITY FUND


At the end of period, our largest overweights were in the telecommunications, health care and utilities sectors. The Fund was underweight in information technology and in the consumer sectors.

Options Portfolio: Over the reporting period, index call options were written on around 60% of the market value of the Fund. The calls were sold on the following indices: Nikkei 225 Index, DJ Eurostoxx 50 Index®, FTSE 100 Index® and S&P 500® Index. During the reporting period, the strikes of the call options written were approximately at-the-money. In total, the option strategy detracted from performance for the six months ended August 31, 2012.

During the months of March until May, markets were in decline and only partially rebounded in the second half of the reporting period. Of the indices on which calls are written however, only the S&P 500® ended the reporting period in positive territory. The declining markets of the first half of the reporting period were accompanied by increases of implied volatility. This dropped off in the second half of the reporting period.

Due to the upward trend which began in June, the premiums collected by writing calls were less than the amounts needed to settle at expiry of the options. A significant part of the Fund’s investments is directly exposed to currency risk, due to investments in global markets. We partially hedge this risk by purchasing foreign exchange (“FX”) options. We write FX call options to finance the Fund’s put options purchases. In doing so, the Fund gives up part of its FX upside potential in return for cheaper downside protection.

Over the period, the U.S. dollar strengthened against the euro and sterling while weakening against the yen. The strengthening of the dollar triggered the option hedges to pay off. Overall, the FX option hedges helped to dampen the volatility of the Fund’s return and contributed modestly to the Fund’s return.

Outlook and Current Strategy: We believe confidence is growing that policymakers can address the global economic crisis. Policy expectations are high. Although still negative, the trends in earnings momentum and economic surprises are improving as well. Strong corporate balance sheets, low valuations and cautious investor positioning offer medium-term support.

We expect corporate earnings to be slightly up for U.S. companies and slightly down for European companies. Companies do not struggle with big inventory overhangs or excess capacity. Costs have been kept well under control, which makes earnings more resilient against a downturn in revenues. In general, companies are in good shape.

Valuations and mergers and acquisition (“M&A”) activities will remain positive drivers for equities. Equity valuations are attractive both on an absolute basis and compared to other asset classes (such as corporate bonds). Against other asset classes the equity risk premium is well above historical levels. Finally, important factors are still in place to feed M&A. In our opinion, companies are cash rich, they have room to lever up given their strong balance sheets and targets are not expensive.

Regarding dividend policy, there is a continued emphasis on sustainable or growing dividends. We believe that in the moderate earnings growth environment that we expect dividends can grow at least in line with this emphasis. In the United States, dividend forecasts have been rising as firms return more cash to shareholders. This trend was reinforced notably in March, when Apple announced that it would pay a dividend for the first time. In general, companies have the cash, while the payout ratios remain relatively low.


Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. The outlook for this Fund is based only on the outlook of its portfolio managers through the end of this period, and may differ from that presented for other ING Funds. Performance data represents past performance and is no guarantee of future results. Past performance is not indicative of future results. The indices do not reflect fees, brokerage commissions, taxes or other expenses of investing. Investors cannot invest directly in an index.

5



STATEMENT OF ASSETS AND LIABILITIES AS OF AUGUST 31, 2012 (UNAUDITED)


ASSETS:
                      
Investments in securities at fair value*
              $ 916,714,616   
Cash
                 20,639,879   
Cash collateral for futures
                 3,824   
Foreign currencies at value**
                 644,100   
Foreign cash collateral for futures***
                 19,283   
Receivables:
                       
Dividends
                 3,634,069   
Foreign tax reclaims
                 966,645   
Prepaid expenses
                 3,561   
Total assets
                 942,625,977   
LIABILITIES:
                      
Payable for investment management fees
                 713,846   
Payable for administrative fees
                 78,884   
Payable for trustee fees
                 3,893   
Other accrued expenses and liabilities
                 314,853   
Written options, at fair valueˆ
                 13,634,718   
Total liabilities
                 14,746,194   
NET ASSETS
              $ 927,879,783   
 
NET ASSETS WERE COMPRISED OF:
                      
Paid-in capital
              $ 1,360,987,589   
Undistributed net investment income
                 1,284,854   
Accumulated net realized loss
                 (460,498,234 )  
Net unrealized appreciation
                 26,105,574   
NET ASSETS
              $ 927,879,783   
_______________
*  Cost of investments in securities
              $ 889,949,339   
**  Cost of foreign currencies
              $ 642,912   
***  Cost of foreign cash collateral for futures
              $ 19,283   
ˆ  Premiums received on written options
              $ 13,024,623   
 
Net assets
              $ 927,879,783   
Shares authorized
                 unlimited    
Par value
              $ 0.01   
Shares outstanding
                 97,548,925   
Net asset value and redemption price per share
              $ 9.51   
 

See Accompanying Notes to Financial Statements

6



STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 2012 (UNAUDITED)


INVESTMENT INCOME:
                      
Dividends, net of foreign taxes withheld*
              $ 23,373,023   
Total investment income
                 23,373,023   
 
EXPENSES:
                      
Investment management fees
                 4,907,240   
Transfer agent fees
                 15,456   
Administrative service fees
                 467,331   
Shareholder reporting expense
                 88,596   
Professional fees
                 38,666   
Custody and accounting expense
                 103,734   
Trustee fees
                 12,042   
Miscellaneous expense
                 94,034   
Total expenses
                 5,727,099   
Net waived and reimbursed fees
                 (276,293 )  
Net expenses
                 5,450,806   
Net investment income
                 17,922,217   
 
REALIZED AND UNREALIZED GAIN (LOSS):
                      
Net realized gain (loss) on:
                       
Investments
                 15,838,854   
Foreign currency related transactions
                 (111,560 )  
Written options
                 (7,259,280 )  
Net realized gain
                 8,468,014   
Net change in unrealized appreciation (depreciation) on:
                       
Investments
                 (25,605,482 )  
Foreign currency related transactions
                 (33,869 )  
Futures
                 4,746   
Written options
                 4,871,052   
Net change in unrealized appreciation (depreciation)
                 (20,763,553 )  
Net realized and unrealized loss
                 (12,295,539 )  
Increase in net assets resulting from operations
              $ 5,626,678   
_______________
*  Foreign taxes withheld
              $ 1,757,529   
 

See Accompanying Notes to Financial Statements

7



STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)


        Six Months Ended
August 31,
2012
    Year Ended
February 29,
2012
FROM OPERATIONS:
                                     
Net investment income
              $ 17,922,217          $ 34,870,812   
Net realized gain (loss)
                 8,468,014             (10,907,488 )  
Net change in unrealized (depreciation)
                 (20,763,553 )            (42,671,156 )  
Increase (decrease) in net assets resulting from operations
                 5,626,678             (18,707,832 )  
 
FROM DISTRIBUTIONS TO SHAREHOLDERS:
                                     
Net investment income
                 (17,678,406 )            (25,259,004 )  
Return of capital
                 (36,753,893 )            (90,325,438 )  
Total distributions
                 (54,432,299 )            (115,584,442 )  
 
FROM CAPITAL SHARE TRANSACTIONS:
                                     
Reinvestment of distributions
                              2,278,652   
Net increase in net assets resulting from capital share transactions
                              2,278,652   
Net decrease in net assets
                 (48,805,621 )            (132,013,622 )  
 
NET ASSETS:
                                     
Beginning of year or period
                 976,685,404             1,108,699,026   
End of year or period
              $ 927,879,783          $ 976,685,404   
Undistributed net investment income at end of year or period
              $ 1,284,854          $ 1,041,043   
 

See Accompanying Notes to Financial Statements

8



FINANCIAL HIGHLIGHTS (UNAUDITED)


Selected data for a share of beneficial interest outstanding throughout each year or period.

Per Share Operating Performance
    Ratios and Supplemental Data
   
Income (loss)
from investment
operations
Less distributions
Ratios to average
net assets
   
               
Net
asset
value,
beginning
of
year
or
period
Net
investment
income
  
Net
realized
and
unrealized
gain
(loss)
Total
from
investment
operations
From
net
investment
income
  
From
net
realized
gains
  
From
return
of
capital
Total
distributions
Adjustment
to
paid-in
capital
for
offering
cost
Net
asset
value,
end
of
year
or
period
Market
Value,
end
of
year
or
period
Total
Investment
Return
at
net
asset
value
(1)

Total
Investment
Return
at
market
value(2)

Net
assets,
end
of
year
or
period
000’s
Gross
expenses
prior
to
expense
waiver
(3)
  
Net
expenses
after
expense
waiver
(3)(4)
  
Net
investment
income
(loss)
(3)(4)
  
Portfolio
Turnover
Year or period ended
($)
($)
  
($)
($)
($)
  
($)
  
($)
($)
($)
(%)
(%)
(%)
(%)
($000’s)
(%)
  
(%)
  
(%)
  
(%)
08-31-12
     10.01         0.18             (0.12 )        0.06         0.18                          0.38         0.56                  9.51         9.26         0.95         2.93         927,880         1.22             1.17             3.84             36    
02-29-12
     11.39         0.36             (0.55 )        (0.19 )        0.26                          0.93         1.19                  10.01         9.56         (1.13 )        (3.28 )        976,685         1.24             1.14             3.45             90    
02-28-11
     11.58         0.35             0.76         1.11         0.82                          0.48         1.30                  11.39         11.12         10.44         0.29         1,108,699         1.22             1.07             3.16             58    
02-28-10
     9.81         0.38             3.17         3.55         0.30                          1.48         1.78                  11.58         12.45         38.12         78.96         1,117,910         1.23             1.03             3.34             72    
02-28-09
     17.39         0.68             (6.39 )        (5.71 )        0.95                          0.92         1.87                  9.81         8.14         (34.02 )        (45.09 )        947,889         1.22             1.02             4.76             84    
02-29-08
     19.98         0.66             (1.18 )        (0.52 )        0.61             1.35             0.11         2.07                  17.39         17.34         (2.74 )        (5.71 )        1,691,458         1.23             1.03             3.40             79    
02-28-07
     19.08         0.67             2.09         2.76         0.57             1.24             0.06         1.87         0.01         19.98         20.55         15.32         19.35         1,933,397         1.21             1.01             3.43             119    
03-31-05(5)–02-28-06
     19.06 (6)        0.63             0.79         1.42         0.66             0.43             0.31         1.40                  19.08         18.96         7.84         2.13         1,825,844         1.23             1.03             3.75             112    
 
                                                                                                                                                                                                                                               
 


(1)
  Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the dividend reinvestment plan. Total investment return at net asset value is not annualized for periods less than one year.
(2)
  Total investment return at market value measures the change in the market value of your investment assuming reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the Fund’s dividend reinvestment plan. Total investment return at market value is not annualized for periods less than one year.
(3)
  Annualized for periods less than one year.
(4)
  The Investment Advisor has contractually agreed to waive a portion of its fee equivalent to 0.20% of the Fund’s managed assets for the first five years of the Fund’s existence. Beginning in the sixth year, the fee waiver will decline each year by 0.05% until it is eliminated in the ninth year.
(5)
  Commencement of operations.
(6)
  Net asset value at beginning of period reflects the deduction of the sales load of $0.90 per share and the offering costs of $0.04 per share paid by the shareholder from the $20.00 offering price.
  Calculated using average number of shares outstanding throughout the period.

See Accompanying Notes to Financial Statements

9



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED)


NOTE 1 — ORGANIZATION

ING Global Equity Dividend and Premium Opportunity Fund (the “Fund”) is a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Pursuant to guidance from the U.S. Securities and Exchange Commission, the Fund’s classification changed from a non-diversified fund to a diversified fund. As a result of this classification change, the Fund is limited in the proportion of its assets that may be invested in the securities of a single issuer. Further, the classification change to a diversified fund may cause the Fund to benefit less from appreciation in a single issuer than if it had greater exposure to that issuer. The Fund is organized as a Delaware statutory trust.

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by the Fund in the preparation of its financial statements, and such policies are in conformity with U.S. generally accepted accounting principles (“GAAP”) for investment companies.

A.  Security Valuation. All investments in securities are recorded at their estimated fair value, as described below. Investments in equity securities traded on a national securities exchange are valued at the last reported sale price. Securities reported by NASDAQ are valued at the NASDAQ official closing prices. Securities traded on an exchange or NASDAQ for which there has been no sale and equity securities traded in the over-the-counter-market are valued at the mean between the last reported bid and ask prices. All investments quoted in foreign currencies will be valued daily in U.S. dollars on the basis of the foreign currency exchange rates prevailing at that time. Debt securities with more than 60 days to maturity are valued using matrix pricing methods determined by an independent pricing service which takes into consideration such factors as yields, maturities, liquidity, ratings and traded prices in similar or identical securities. Securities for which valuations are not readily available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of fair market value obtained from yield data relating to investments or securities with similar characteristics. Investments in open-end mutual funds are valued at the net asset value. Investments in securities of sufficient credit quality maturing 60 days or less from date of acquisition are valued at amortized cost which approximates fair value.

Securities and assets for which market quotations are not readily available (which may include certain restricted securities that are subject to limitations as to their sale) are valued at their fair values, as defined by the 1940 Act, and as determined in good faith by or under the supervision of the Fund’s Board of Trustees (“Board”), in accordance with methods that are specifically authorized by the Board. Securities traded on exchanges, including foreign exchanges, which close earlier than the time that the Fund calculates its net asset value (“NAV”) may also be valued at their fair values, as defined by the 1940 Act, and as determined in good faith by or under the supervision of the Board, in accordance with methods that are specifically authorized by the Board. The value of a foreign security traded on an exchange outside the United States is generally based on its price on the principal foreign exchange where it trades as of the time the Fund determines its NAV or if the foreign exchange closes prior to the time the Fund determines its NAV, the most recent closing price of the foreign security on its principal exchange. Trading in certain non-U.S. securities may not take place on all days on which the NYSE Euronext (“NYSE”) is open. Further, trading takes place in various foreign markets on days on which the NYSE is not open. Consequently, the calculations of the Fund’s NAV may not take place contemporaneously with the determination of the prices of securities held by the Fund in foreign securities markets. Further, the value of the Fund’s assets may be significantly affected by foreign trading on days when a shareholder cannot purchase or redeem shares of the Fund. In calculating the Fund’s NAV, foreign securities denominated in foreign currency are converted to U.S. dollar equivalents. If an event occurs after the time at which the market for foreign securities held by the Fund closes but before the time that the Fund’s NAV is calculated, such event may cause the closing price on the foreign exchange to not represent a readily available reliable market value quotation for such securities at the time the Fund determines its NAV. In such a case, the Fund will use the fair value of such securities as determined under the Fund’s valuation procedures. Events after the close of trading on a foreign market that could require the Fund to fair value some or all of its foreign securities include, among others, securities trading in the U.S. and other markets, corporate announcements, natural and other disasters, and political and other events. Among other elements of analysis in the determination of a security’s fair value, the Board has authorized the use of one or more independent research services to assist with such determinations. An independent research service may use statistical analyses and quantitative models to help

10



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)


determine fair value as of the time the Fund calculates its NAV. There can be no assurance that such models accurately reflect the behavior of the applicable markets or the effect of the behavior of such markets on the fair value of securities, or that such markets will continue to behave in a fashion that is consistent with such models. Unlike the closing price of a security on an exchange, fair value determinations employ elements of judgment. Consequently, the fair value assigned to a security may not represent the actual value that the Fund could obtain if it were to sell the security at the time of the close of the NYSE. Pursuant to procedures adopted by the Board, the Fund is not obligated to use the fair valuations suggested by any research service, and valuation recommendations provided by such research services may be overridden if other events have occurred or if other fair valuations are determined in good faith to be more accurate. Unless an event is such that it causes the Fund to determine that the closing prices for one or more securities do not represent readily available reliable market value quotations at the time the Fund determines its NAV, events that occur between the time of the close of the foreign market on which they are traded and the close of regular trading on the NYSE will not be reflected in the Fund’s NAV.

Options that are traded over-the-counter will be valued using one of three methods: (1) dealer quotes; (2) industry models with objective inputs; or (3) by using a benchmark arrived at by comparing prior-day dealer quotes with the corresponding change in the underlying security. Exchange traded options will be valued using the last reported sale. If no last sale is reported, exchange traded options will be valued using an industry accepted model such as “Black Scholes.” Options on currencies purchased by the Fund are valued using industry models with objective inputs.

Fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as “Level 1,” inputs other than quoted prices for an asset or liability that are observable are classified as “Level 2” and unobservable inputs, including the sub-adviser’s judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as “Level 3.” The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Short-term securities of sufficient credit quality which are valued at amortized cost, which approximates fair value, are generally considered to be Level 2 securities under applicable accounting rules. A table summarizing the Fund’s investments under these levels of classification is included following the Summary Portfolio of Investments.

The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available, and has delegated the responsibility for applying the valuation methods to the “Pricing Committee” as established by the Fund’s Administrator. The Pricing Committee considers all facts they deem relevant that are reasonably available, through either public information or information available to the Investment Adviser or sub-adviser, when determining the fair value of the security. In the event that a security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the fair value of the security or asset will be determined in good faith by the Pricing Committee. When the Fund uses these fair valuation methods that use significant unobservable inputs to determine its NAV, securities will be priced by a method that the Pricing Committee believes accurately reflects fair value and are categorized as Level 3 of the fair value hierarchy. The methodologies used for valuing securities are not necessarily an indication of the risks of investing in those securities valued in good faith at fair value nor can it be assured the Fund can obtain the fair value assigned to a security if they were to sell the security.

To assess the continuing appropriateness of security valuations, the Pricing Committee may compare prior day prices, prices on comparable securities, and traded prices to the prior or current day prices and the Pricing Committee challenges those prices exceeding certain tolerance levels with the third party pricing service or broker source. For those securities valued in good faith at fair value, the Pricing Committee reviews and affirms the reasonableness of the valuation on a regular basis after considering all relevant information that is reasonably available.

For fair valuations using significant unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The end of period timing recognition is used for

11



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)


the transfers between Levels of the Fund’s assets and liabilities. A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments.

For the period ended August 31, 2012, there have been no significant changes to the fair valuation methodologies.

B.  Security Transactions and Revenue Recognition. Security transactions are recorded on the trade date. Realized gains or losses on sales of investments are calculated on the identified cost basis. Interest income is recorded on the accrual basis. Premium amortization and discount accretion are determined using the effective yield method. Dividend income is recorded on the ex-dividend date or in the case of certain foreign dividends, when the information becomes available to the Fund.

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

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

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

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

D.  Distributions to Shareholders. The Fund intends to make monthly distributions from its cash available for distribution, which consists of the Fund’s dividends and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on investments. Such monthly distributions may also consist of return of capital. At least annually, the Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date. Distributions are determined annually in accordance with federal tax principles, which may differ from U.S. generally accepted accounting principles for investment companies. The tax treatment and characterization of the Fund’s distributions may vary significantly from time to time depending on whether the Fund has gains or losses on the call options written on its portfolio versus gains or losses on the equity securities in the Fund. Each month, the Fund will provide disclosures with distribution payments made that estimate the percentages of that distribution that represent net investment income, other income or capital gains, and return of capital, if any. The final composition of the tax characteristics of the distributions cannot be determined with certainty until after the end of the Fund’s tax year, and will be reported to shareholders at that time. A significant portion of the Fund’s distributions may constitute a return of capital. The amount of monthly distributions will vary, depending on a number of factors. As portfolio and market conditions change, the rate of dividends on the common shares will change. There can be no assurance that the Fund will be able to declare a dividend in each period.

E.  Federal Income Taxes. It is the policy of the Fund to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized capital gains to its shareholders. Therefore, a federal

12



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)


income tax or excise tax provision is not required. Management has considered the sustainability of the Fund’s tax positions taken on federal income tax returns for all open tax years in making this determination.

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

G.  Risk Exposures and the use of Derivative Instruments. The Fund’s investment objectives permit the Fund to enter into various types of derivatives contracts, including, but not limited to, forward foreign currency exchange contracts and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase or decrease the level of risk, or change the level or types of exposure to market risk factors. This may allow the Fund to pursue its objectives more quickly and efficiently, than if it were to make direct purchases or sales of securities capable of affecting a similar response to market factors.

Market Risk Factors. In pursuit of its investment objectives, the Fund may seek to use derivatives to increase or decrease its exposure to the following market risk factors:

Credit Risk. Credit risk relates to the ability of the issuer to meet interest and principal payments, or both, as they come due. In general, lower-grade, higher-yield bonds are subject to credit risk to a greater extent than lower-yield, higher-quality bonds.

Equity Risk. Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

Foreign Exchange Rate Risk. Foreign exchange rate risk relates to the change in U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

Interest Rate Risk. Interest rate risk refers to the fluctuations in value of fixed-income securities resulting from the inverse relationship between price and yield. For example, an increase in general interest rates will tend to reduce the market value of already issued fixed-income investments, and a decline in general interest rates will tend to increase their value. In addition, debt securities with longer duration, which tend to have higher yields, are subject to potentially greater fluctuations in value from changes in interest rates than obligations with shorter duration.

Risks of Investing in Derivatives. The Fund’s use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.

The use of these strategies involves certain special risks, including a possible imperfect correlation, or even no correlation, between price movements of derivative instruments and price movements of related investments. While some strategies involving derivative instruments can reduce the risk of loss, they can also reduce the opportunity for gain or even result in losses by offsetting favorable price movements in related investments or otherwise, due to the possible inability of the Fund to purchase or sell a portfolio security at a time that otherwise would be favorable or the possible need to sell a portfolio security at a disadvantageous time because the Fund is required to maintain asset coverage or offsetting positions in connection with transactions in derivative instruments. Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Fund. Associated risks are not the risks that the Fund is attempting to increase or decrease exposure to, per its investment objectives, but are the additional risks from investing in derivatives. Examples of these associated risks are liquidity risk, which is the risk that the Fund will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. Associated risks can be different for each type of derivative and are discussed by each derivative type in the following notes.

Counterparty Credit Risk and Credit Related Contingent Features. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund’s derivative counterparties are financial

13



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)


institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that it believes to be creditworthy at the time of the transaction. To reduce this risk, the Fund generally enters into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain over-the-counter (“OTC”) derivative and forward foreign currency contracts, entered into by the Fund and the counterparty. The Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable Master Agreement.

The Fund may also enter into collateral agreements with certain counterparties to further mitigate credit risk associated with OTC derivative and forward foreign currency contracts. Subject to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with 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 maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Fund. For purchased OTC options, the Fund bears the risk of loss in the amount of the premiums paid and the change in market value of the options should the counterparty not perform under the contracts. As of August 31, 2012, the total value of purchased OTC put options subject to counterparty credit risk was $198,803. The counterparties did not post any collateral to the Fund at period end. There were no credit events during the six months ended August 31, 2012 that triggered any credit related contingent features.

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.

Written options by the Fund do not give rise to counterparty credit risk, as written options obligate the Fund to perform and not the counterparty. As of August 31, 2012, the total value of written OTC call options subject to Master Agreements in a liability position was $13,634,718. If a contingent feature had been triggered, the Fund could have been required to pay this amount in cash to its counterparties. The Fund did not hold or post collateral for its open written OTC call options at period end. There were no credit events during the six months ended August 31, 2012 that triggered any credit related contingent features.

H.  Futures Contracts. The Fund may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. During the period, the Fund limited its use of futures contracts and futures options to “bona fide hedging” transactions, as such term is defined in applicable regulations, interpretations and practice. A futures contract obligates the seller of the contract to deliver and the purchaser of the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time for a specified price. Upon entering into such a contract, 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 period ended August 31, 2012, 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

14



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)


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.

During the period ended August 31, 2012, the Fund had an average notional value on purchased and sold futures of $33,632 and $67,712, respectively.

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’s option strategy seeks to reduce volatility of total returns and to supplement distributions by selling call options and may also purchase put options on equity indices.

The Fund is also subject to foreign currency risk given its significant investments in foreign equities. In order to mitigate this risk, the Fund uses foreign-exchange option collars. Please refer to Note 6 for the volume of both purchased and written option activity during the period ended August 31, 2012.

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 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 an investment management agreement (“Management Agreement”), a fee, payable monthly, based on an annual rate of 1.05% of the Fund’s average daily managed assets. For the first five years of the Fund’s existence, the Investment Adviser will contractually waive a portion of its fee equivalent to 0.20% of the Fund’s managed assets. Beginning in the sixth year, the fee waiver will decline each year by 0.05% until it is eliminated in the ninth year. 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 August 31, 2012, there were no preferred shares outstanding.

The Investment Adviser entered into a sub-advisory agreement (“Sub-Advisory Agreement”) with ING Investment Management Advisors B.V. (“IIMA”), an indirect, wholly-owned subsidiary of ING Groep N.V. (“ING Groep”), domiciled in The Hague, The Netherlands. Subject to policies as the Board or the Investment Adviser might determine, IIMA manages the Fund’s assets in accordance with the Fund’s investment objectives, policies and limitations.

The Investment Adviser has also 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

15



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 3 — INVESTMENT MANAGEMENT AND ADMINISTRATIVE FEES (continued)

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.

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

ING Groep has adopted a formal restructuring plan that was approved by the European Commission in November 2009 under which the ING life insurance businesses, including the retirement services and investment management businesses, which include the Adviser and its immediate affiliates, would be separated from ING Groep by the end of 2013. To achieve this goal, in a series of announcements beginning November 2010, ING Groep announced that it plans to pursue transactions to restructure certain businesses, including an initial public offering for its U.S. based insurance, retirement services, and investment management operations; and other transactions, which could include an initial public offering or other type of transaction, for its European based insurance and investment management operations and Asian based insurance and investment management operations. There can be no assurance that all or part of the restructuring plan will be carried out.

The restructuring plan and the uncertainty about its implementation, whether implemented through the planned public offerings or through other means, in whole or in part, may be disruptive to the businesses of ING entities, including the ING entities that service the Fund, and may cause, among other things, interruption or reduction of business and services, diversion of management’s attention from day-to-day operations, and loss of key employees or customers. A failure to complete the offerings or other means of implementation on favorable terms could have a material adverse impact on the operations of the businesses subject to the restructuring plan. The restructuring plan may result in the Investment Adviser’s loss of access to services and resources of ING Groep, which could adversely affect its businesses and profitability. In addition, the divestment of ING businesses, including the Investment Adviser, may potentially be deemed a “change of control” of each entity. A change of control would result in the termination of the Fund’s advisory and sub-advisory agreements, which would trigger the necessity for new agreements that would require approval of the board, and may trigger the need for shareholder approval. Currently, the Investment Adviser does not anticipate that the restructuring will have a material adverse impact on the Fund or its operations and administration.

NOTE 4 — OTHER TRANSACTIONS WITH AFFILIATED 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 5 — PURCHASES AND SALES OF INVESTMENT SECURITIES

The cost of purchases and proceeds from sales of investments for the period ended August 31, 2012, excluding short-term securities, were $333,512,520 and $353,084,125, respectively.

NOTE 6 — PURCHASED AND WRITTEN OPTIONS

Transactions in purchased OTC put options on foreign currencies were as follows:

        USD
NOTIONAL
    Cost
Balance at 02/29/12
              $ 163,000,000          $ 1,087,600   
Options Purchased
                 310,500,000             1,852,825   
Options Expired
                 (240,000,000 )            (1,569,400 )  
Options Exercised
                                 
Options Terminated in Closing Sell Transactions
                 (84,000,000 )            (516,000 )  
Balance at 08/31/12
              $ 149,500,000          $ 855,025   
 

Transactions in written OTC call options on foreign currencies were as follows:

        USD
NOTIONAL
    Premiums
Received
Balance at 02/29/12
              $ 163,000,000          $ 1,087,600   
Options Written
                 310,500,000             1,852,825   
Options Expired
                 (304,000,000 )            (1,965,400 )  
Options Exercised
                                 
Options Terminated in Closing Purchase Transactions
                 (20,000,000 )            (120,000 )  
Balance at 08/31/12
              $ 149,500,000          $ 855,025   
 

16



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 6 — PURCHASED AND WRITTEN OPTIONS (continued)

Transactions in written OTC call options on indices were as follows:

        Number of
Contracts
    Premiums
Received
Balance at 02/29/12
                 893,200          $ 12,608,077   
Options Written
                 3,580,100             55,391,699   
Options Expired
                 (1,470,100 )            (20,085,966 )  
Options Exercised
                                 
Options Terminated in Closing Purchase Transactions
                 (2,180,100 )            (35,744,212 )  
Balance at 08/31/12
                 823,100          $ 12,169,598   
 

NOTE 7 — 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 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 8 — 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
        #
    #
    ($)
    ($)
8/31/2012
                                                           
2/29/2012
                 216,490             216,490             2,278,652             2,278,652   
 

NOTE 9 — 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. generally accepted accounting principles 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.

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, 2012. The tax composition of dividends and distributions as of the Fund’s most recent tax year-end was as follows:

Tax Year Ended
December 31, 2011
 
Ordinary
Income
        Return
of Capital
$31,004,604
           
$85,241,031
 

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, 2011 are detailed in the table below. Capital loss carryforwards with no expiration, if any, must be utilized prior to those with expiration dates.

        Capital Loss Carryforwards
   
Unrealized
Appreciation/
(Depreciation)
        Amount
    Character
    Expiration
$(12,929,996)               $ (106,960,018 )            Short-term              2016    
                   (325,327,424 )            Short-term              2017    
                   (11,778,434 )            Long-term              None    
                $ (444,065,876 )                                
 

17



NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


NOTE 9 — FEDERAL INCOME TAXES (continued)

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 2007.

As of August 31, 2012, 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 10 — SUBSEQUENT EVENTS

Dividends. Subsequent to August 31, 2012, the Fund made distributions of:

Per Share
Amount
        Declaration
Date
    Payable
Date
    Record
Date
$0.093                  8/15/2012             9/17/2012             9/6/2012   
$0.084                  9/17/2012             10/15/2012             10/3/2012   
 

Each month, 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 monthly distribution payments made by the Fund may constitute a return of capital.

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.

18



ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED)


Shares


  

  

  
Value
  
Percentage
of Net
Assets
COMMON STOCK: 98.8%
 
Australia: 2.8%
1,311,997
           
 
   
Amcor Ltd.
      $ 10,232,567             1.1   
955,194
           
 
   
Westfield Group
         9,818,496             1.1   
1,377,795
           
 
   
Other Securities
         5,933,273             0.6   
 
           
 
   
 
          25,984,336             2.8   
 
 
           
 
   
Brazil: 0.5%
240,200
           
 
   
Other Securities
         4,943,316             0.5   
 
 
           
 
   
Canada: 3.2%
130,300
           
 
   
Canadian Imperial Bank of Commerce
         10,076,357             1.1   
500,228
           
 
   
Shaw Communications, Inc.—Class B
         10,230,379             1.1   
209,764
           
 
   
TransCanada Corp.
         9,448,158             1.0   
 
           
 
   
 
         29,754,894             3.2   
 
 
           
 
   
France: 8.1%
273,278
           
 
   
Alstom
         9,709,281             1.0   
253,147
           
 
   
BNP Paribas
         10,956,228             1.2   
254,309
           
 
   
Capgemini S.A.
         9,331,995             1.0   
289,688
           
 
   
Cie de Saint-Gobain
         9,921,254             1.1   
389,902
           
 
   
Gaz de France
         9,583,811             1.0   
124,218
           
 
   
Sanofi-Aventis
         10,161,005             1.1   
220,825
           
 
   
Vinci S.A.
         9,586,161             1.1   
173,993
           
 
   
Other Securities
         5,344,199             0.6   
 
           
 
   
 
         74,593,934             8.1   
 
 
           
 
   
Germany: 5.9%
122,135
           
 
   
Bayer AG
         9,458,070             1.0   
203,656
           
 
   
DaimlerChrysler AG
         9,960,984             1.1   
1,328,988
           
 
   
Deutsche Telekom AG
         15,852,148             1.7   
317,536
           
 
   
Metro AG
         9,550,761             1.0   
68,109
           
 
   
Muenchener Rueckversicherungs AG
         10,064,918             1.1   
 
           
 
   
 
         54,886,881             5.9   
 
 
           
 
   
Hong Kong: 1.0%
178,004
           
 
   
China Mobile Ltd. ADR
         9,557,035             1.0   
 
 
           
 
   
Israel: 1.0%
843,566
           
 
   
Israel Chemicals Ltd.
         9,164,167             1.0   
 
 
           
 
   
Japan: 8.0%
192,700
           
 
   
Astellas Pharma, Inc.
         9,435,859             1.0   
272,000
           
 
   
Canon, Inc.
         9,066,375             1.0   
154,900
           
 
   
East Japan Railway Co.
         10,399,099             1.1   
890,900
           
 
   
Itochu Corp.
         9,086,783             1.0   
1,983,400
           
 
   
Mitsubishi UFJ Financial Group, Inc.
         9,066,514             1.0   
645,900
           
 
   
Mitsui & Co., Ltd.
         9,072,189             1.0   
295,300
           
 
   
Sumitomo Mitsui Financial Group, Inc.
         9,197,369             1.0   
959,700
           
 
   
Other Securities
         9,000,082             0.9   
 
           
 
   
 
         74,324,270             8.0   
 
 
           
 
   
Luxembourg: 1.0%
634,932
           
 
   
ArcelorMittal
         9,389,622             1.0   
 
 
           
 
   
Netherlands: 3.8%
1,911,189
           
 
   
Aegon NV
      $   9,810,392             1.1   
1,154,007
           
 
   
Koninklijke KPN NV
         9,896,056             1.1   
429,412
           
 
   
Royal Dutch Shell PLC
         15,021,831             1.6   
 
           
 
   
 
         34,728,279             3.8   
 
 
           
 
   
Portugal: 0.5%
2,046,392
           
 
   
Other Securities
         4,992,042             0.5   
 
 
           
 
   
Singapore: 1.7%
702,000
           
 
   
United Overseas Bank Ltd.
         10,770,218             1.2   
1,721,000
           
 
   
Other Securities
         4,683,354             0.5   
 
           
 
   
 
         15,453,572             1.7   
 
 
           
 
   
Sweden: 1.7%
1,683,030
           
 
   
Telefonaktiebolaget LM Ericsson
         15,713,733             1.7   
 
 
           
 
   
Switzerland: 3.9%
265,485
           
 
   
Novartis AG
         15,655,815             1.7   
55,300
           
 
   
Roche Holding AG—Genusschein
         10,053,186             1.1   
42,928
           
@
   
Zurich Financial Services AG
         10,303,482             1.1   
 
           
 
   
 
         36,012,483             3.9   
 
 
           
 
   
Taiwan: 1.1%
673,658
           
 
   
Taiwan Semiconductor Manufacturing Co., Ltd. ADR
         9,902,773             1.1   
 
 
           
 
   
United Kingdom: 14.7%
329,652
           
 
   
BHP Billiton PLC
         9,647,720             1.0   
1,424,019
           
 
   
BP PLC
         9,988,852             1.1   
2,673,760
           
 
   
BT Group PLC
         9,235,935             1.0   
896,836
           
 
   
Capita Group PLC
         10,276,771             1.1   
201,600
           
@
   
Ensco PLC
         11,565,792             1.3   
1,744,998
           
 
   
HSBC Holdings PLC
         15,201,249             1.6   
389,002
           
 
   
Imperial Tobacco Group PLC
         15,176,937             1.6   
757,736
           
 
   
Land Securities Group PLC
         9,507,247             1.0   
796,021
           
 
   
Prudential PLC
         9,943,802             1.1   
177,112
           
 
   
Reckitt Benckiser PLC
         10,016,193             1.1   
1,111,063
           
 
   
Reed Elsevier PLC
         10,416,656             1.1   
1,972,993
           
 
   
Tesco PLC
         10,536,791             1.1   
109,081
           
 
   
Other Securities
         5,102,475             0.6   
 
           
 
   
 
         136,616,420             14.7   
 
 
           
 
   
United States: 39.9%
232,214
           
 
   
Abbott Laboratories
         15,219,306             1.6   
255,700
           
 
   
Analog Devices, Inc.
         10,161,518             1.1   
295,700
           
 
   
Bristol-Myers Squibb Co.
         9,761,057             1.1   
271,900
           
 
   
Carnival Corp.
         9,429,492             1.0   
108,800
           
 
   
Caterpillar, Inc.
         9,283,904             1.0   
239,900
           
 
   
CenturyTel, Inc.
         10,138,174             1.1   
89,100
           
 
   
Chevron Corp.
         9,993,456             1.1   
317,200
           
 
   
Dow Chemical Co.
         9,297,132             1.0   
216,200
           
 
   
Eli Lilly & Co.
         9,709,542             1.0   
177,700
           
 
   
ExxonMobil Corp.
         15,513,210             1.7   

See Accompanying Notes to Financial Statements

19



ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


Shares


  

  

  
Value
  
Percentage
of Net
Assets
COMMON STOCK: (continued)
 
           
 
   
United States: (continued)
260,400
           
 
   
Freeport-McMoRan Copper & Gold, Inc.
      $   9,403,044             1.0   
748,400
           
 
   
General Electric Co.
         15,499,364             1.7   
135,400
           
 
   
Johnson & Johnson
         9,130,022             1.0   
426,600
           
 
   
JPMorgan Chase & Co.
         15,843,924             1.7   
234,871
           
 
   
Kraft Foods, Inc.
         9,754,193             1.1   
491,300
           
 
   
Metlife, Inc.
         16,768,069             1.8   
500,700
           
 
   
Microsoft Corp.
         15,431,574             1.7   
230,400
           
 
   
Molson Coors Brewing Co.
         10,262,016             1.1   
240,200
           
 
   
Northeast Utilities
         9,048,334             1.0   
109,000
           
 
   
Occidental Petroleum Corp.
         9,266,090             1.0   
131,500
           
 
   
PepsiCo, Inc.
         9,524,545             1.0   
405,658
           
 
   
Pfizer, Inc.
         9,679,000             1.0   
1,006,192
           
 
   
Pitney Bowes, Inc.
         13,442,725             1.4   
156,200
           
 
   
PNC Financial Services Group, Inc.
         9,709,392             1.0   
515,337
           
 
   
PPL Corp.
         15,114,834             1.6   
144,000
           
 
   
Procter & Gamble Co.
         9,675,360             1.0   
324,720
           
 
   
Spectra Energy Corp.
         9,176,587             1.0   
246,300
           
 
   
St. Jude Medical, Inc.
         9,300,288             1.0   
114,000
           
 
   
Time Warner Cable, Inc.
         10,125,480             1.1   
307,000
           
 
   
UGI Corp.
         9,357,360             1.0   
122,500
           
 
   
United Technologies Corp.
         9,781,625             1.1   
63,300
           
 
   
VF Corp.
         9,664,644             1.0   
1,756,100
           
 
   
Other Securities
         17,032,795             1.9   
 
           
 
   
 
         370,498,056             39.9   
 
 
           
 
   
Total Common Stock
(Cost $889,094,314)
         916,515,813             98.8   
 
# of
Contracts


  

  

  
Value
  
Percentage
of Net
Assets
PURCHASED OPTIONS: 0.0%
 
Options on Currencies: 0.0%
17,000,000
           
@
   
Call USD/JPY, Strike @ 82.600, Exp. 11/19/12 Counterparty: Citigroup, Inc.
         30,038             0.0   
16,250,000
           
@
   
Call USD/JPY, Strike @ 81.250, Exp. 10/22/12 Counterparty: Barclays Bank PLC
         27,463             0.0   
16,250,000
           
@
   
Call USD/JPY, Strike @ 83.470, Exp. 09/20/12 Counterparty: Barclays Bank PLC
         577              0.0   
18,000,000
           
@
   
Put EUR/USD, Strike @ 1.165, Exp. 10/22/12 Counterparty: Barclays Bank PLC
         18,359             0.0   
16,000,000
           
@
   
Put EUR/USD, Strike @ 1.198, Exp. 09/20/12 Counterparty: Barclays Bank PLC
         8,594             0.0   
10,000,000
           
@
   
Put EUR/USD, Strike @ 1.179, Exp. 11/19/12 Counterparty: JPMorgan Chase & Co.
         35,607             0.0   
20,000,000
           
@
   
Put GBP/USD, Strike @ 1.516, Exp. 11/19/12 Counterparty: Deutsche Bank AG
         55,722             0.0   
17,500,000
           
@
   
Put GBP/USD, Strike @ 1.506, Exp. 09/20/12 Counterparty: Barclays Bank PLC
         977              0.0   
18,500,000
           
@
   
Put GBP/USD, Strike @ 1.517, Exp. 10/22/12 Counterparty: Deutsche Bank AG
         21,466             0.0   
 
           
 
   
 
         198,803             0.0   
 
 
           
 
   
Total Purchased Options
(Cost $855,025)
         198,803             0.0   
 
 
           
 
   
Total Investments in Securities
(Cost $889,949,339)
      $ 916,714,616             98.8   
 
           
 
   
Assets in Excess of Other Liabilities
         11,165,167             1.2   
 
           
 
   
Net Assets
      $ 927,879,783             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 August 31, 2012.

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
ADR
  American Depositary Receipt
  Cost for federal income tax purposes is $890,721,020.

Net unrealized appreciation consists of:
                       
Gross Unrealized Appreciation
              $ 70,607,240   
Gross Unrealized Depreciation
                 (44,613,644 )  
Net Unrealized Appreciation
              $ 25,993,596   
 

Sector Diversification
        Percentage
of Net Assets
Financials
                 19.2 %  
Health Care
                 13.2   
Industrials
                 12.6   
Energy
                 10.8   
Consumer Staples
                 9.0   
Information Technology
                 8.5   
Consumer Discretionary
                 7.9   
Telecommunication Services
                 6.4   
Materials
                 6.1   
Utilities
                 5.1   
Options on Currencies
                 0.0   
Assets in Excess of Other Liabilities
                 1.2   
Net Assets
                 100.0 %  
 

See Accompanying Notes to Financial Statements

20



ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


Fair Value Measurementsˆ

The following is a summary of the fair valuations according to the inputs used as of August 31, 2012 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
August 31, 2012
Asset Table
                                                                   
Investments, at fair value
                                                                   
Common Stock
                                                                       
Australia
              $           $ 25,984,336          $           $ 25,984,336   
Brazil
                 4,943,316                                       4,943,316   
Canada
                 29,754,894                                       29,754,894   
France
                              74,593,934                          74,593,934   
Germany
                              54,886,881                          54,886,881   
Hong Kong
                 9,557,035                                       9,557,035   
Israel
                              9,164,167                          9,164,167   
Japan
                              74,324,270                          74,324,270   
Luxembourg
                              9,389,622                          9,389,622   
Netherlands
                              34,728,279                          34,728,279   
Portugal
                              4,992,042                          4,992,042   
Singapore
                              15,453,572                          15,453,572   
Sweden
                              15,713,733                          15,713,733   
Switzerland
                              36,012,483                          36,012,483   
Taiwan
                 9,902,773                                       9,902,773   
United Kingdom
                 11,565,792             125,050,628                          136,616,420   
United States
                 370,498,056                                       370,498,056   
Total Common Stock
                 436,221,866             480,293,947                          916,515,813   
Purchased Options
                              198,803                          198,803   
Total Investments, at fair value
              $ 436,221,866          $ 480,492,750          $           $ 916,714,616   
Other Financial Instruments+
                                                                   
Futures
                 4,746                                       4,746   
Total Assets
              $ 436,226,612          $ 480,492,750          $           $ 916,719,362   
Liabilities Table
                                                                   
Other Financial Instruments+
                                                                   
Written Options
              $           $ (13,634,718 )         $           $ (13,634,718 )  
Total Liabilities
              $           $ (13,634,718 )         $           $ (13,634,718 )  
 


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, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. 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.
  There were no transfers in or out of Levels 1, 2 or 3 of the fair value hierarchy during the period ended August 31, 2012.

ING Global Equity Dividend and Premium Opportunity Fund Open Futures Contracts on August 31, 2012:

Contract Description
        Number
of Contracts
    Expiration
Date
    Notional
Value
    Unrealized
Appreciation/
(Depreciation)
Long Contracts
                                                                   
Euro STOXX 50® Index
                 1              09/21/12          $ 30,640          $ 87    
S&P 500 E-Mini
                 1              09/21/12             70,255             15    
 
                                            $ 100,895          $ 102    

See Accompanying Notes to Financial Statements

21



ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


Contract Description
        Number
of Contracts
    Expiration
Date
    Notional
Value
    Unrealized
Appreciation/
(Depreciation)
Short Contracts
                                                                   
FTSE 100 Index
                 (1 )            09/21/12          $ (90,484 )         $ 1,202   
Nikkei 225 Index
                 (1 )            09/13/12             (112,651 )            3,442   
 
                                            $ (203,135 )         $ 4,644   
 

ING Global Equity Dividend and Premium Opportunity Fund Written OTC Options on August 31, 2012:

# of Contracts
        Counterparty
    Description
    Exercise
Price
    Expiration
Date
    Premiums
Received
    Fair Value
Options on Indices
                     
6,800
           
UBS Warburg LLC
   
Call on Euro Stoxx 50® Index
   
 2,284.560 EUR
         09/07/12          $ 531,521          $ (1,344,813 )  
6,700
           
UBS Warburg LLC
   
Call on Euro Stoxx 50® Index
   
 2,372.095 EUR
         09/21/12             600,298             (815,974 )  
4,700
           
UBS Warburg LLC
   
Call on Euro Stoxx 50® Index
   
 2,463.000 EUR
         10/05/12             415,485             (327,656 )  
2,400
           
Barclays Bank PLC
   
Call on FTSE 100 Index
   
 5,646.472 GBP
         09/07/12             465,550             (338,881 )  
2,500
           
Barclays Bank PLC
   
Call on FTSE 100 Index
   
 5,842.287  GBP
         10/05/12             455,679             (191,116 )  
2,500
           
UBS Warburg LLC
   
Call on FTSE 100 Index
   
 5,741.800 GBP
         09/21/12             467,017             (255,310 )  
175,600
           
Barclays Bank PLC
   
Call on Nikkei 225 Index
   
  8,602.170 JPY
         09/21/12             429,790             (666,870 )  
176,800
           
Royal Bank of Scotland PLC
   
Call on Nikkei 225 Index
   
  8,693.690 JPY
         09/07/12             428,542             (413,662 )  
174,600
           
UBS Warburg LLC
   
Call on Nikkei 225 Index
   
  9,115.740 JPY
         10/05/12             475,509             (141,271 )  
89,600
           
Barclays Bank PLC
   
Call on S&P 500 Index
   
1,386.890  USD
         09/21/12             2,646,856             (2,714,411 )  
91,200
           
Citigroup, Inc.
   
Call on S&P 500 Index
   
1,414.413  USD
         10/05/12             2,538,652             (1,827,041 )  
89,700
           
UBS Warburg LLC
   
Call on S&P 500 Index
   
1,365.977  USD
         09/07/12             2,714,699             (3,733,424 )  
Options on Currencies
 
                                            
18,000,000
           
Barclays Bank PLC
   
Call EUR/USD
   
     1.261 USD
         10/22/12             118,800             (254,214 )  
16,000,000
           
Barclays Bank PLC
   
Call EUR/USD
   
     1.303 USD
         09/20/12             128,000             (14,024 )  
10,000,000
           
JPMorgan Chase & Co.
   
Call EUR/USD
   
     1.273 USD
         11/19/12             67,000             (138,894 )  
17,500,000
           
Barclays Bank PLC
   
Call GBP/USD
   
     1.609 USD
         09/20/12             105,000             (35,186 )  
20,000,000
           
Deutsche Bank AG
   
Call GBP/USD
   
     1.609  USD
         11/19/12             100,000             (162,757 )  
18,500,000
           
Deutsche Bank AG
   
Call GBP/USD
   
     1.611 USD
         10/22/12             92,500             (89,531 )  
16,250,000
           
Barclays Bank PLC
   
Put USD/JPY
   
   76.040 USD
         10/22/12             73,125             (33,070 )  
16,250,000
           
Barclays Bank PLC
   
Put USD/JPY
   
   77.120 USD
         09/20/12             97,500             (23,669 )  
17,000,000
           
Citigroup, Inc.
   
Put USD/JPY
   
   76.850 USD
         11/19/12             73,100             (112,944 )  
 
           
 
   
 
   
Total Written OTC Options
      $ 13,024,623          $ (13,634,718 )  
 

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

The fair value of derivative instruments as of August 31, 2012 was as follows:

Derivatives not accounted for as
hedging instruments
        Location on Statement
of Assets and Liabilities
    Fair Value
Asset Derivatives
           
 
              
Foreign exchange contracts
           
Investments in securities at value*
      $ 198,803   
Equity contracts
           
Net Assets — Unrealized appreciation**
         4,746   
Total Asset Derivatives
           
 
      $ 203,549   
Liability Derivatives
           
 
              
Equity Contracts
           
Written options, at fair value
      $ 12,770,429   
Foreign exchange contracts
           
Written options, at fair value
         864,289   
Total Liability Derivatives
           
 
      $ 13,634,718   
 


*
  Includes purchased options.
**
  Includes cumulative appreciation/depreciation of futures contracts as reported in the table following the Summary Portfolio of Investments.

See Accompanying Notes to Financial Statements

22



ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


The effect of derivative instruments on the Fund’s Statement of Operations for the six months ended August 31, 2012 was as follows:

        Amount of Realized Gain or (Loss)
on Derivatives Recognized in Income
   
Derivatives not accounted for as
hedging instruments
        Investments*
    Futures
    Written options
    Total
Equity contracts
              $           $           $ (9,086,887 )         $ (9,086,887 )  
Foreign exchange contracts
                 (305,306 )                         1,827,607             1,522,301   
Total
              $ (305,306 )         $           $ (7,259,280 )         $ (7,564,586 )  
 

        Change in Unrealized Appreciation or (Depreciation)
on Derivatives Recognized in Income
   
Derivatives not accounted for as
hedging instruments
        Investments*
    Futures
    Written options
    Total
Equity contracts
              $           $ 4,746          $ 5,241,027          $ 5,245,773   
Foreign exchange contracts
                 (575,642 )                         (369,975 )            (945,617 )  
Total
              $ (575,642 )         $ 4,746          $ 4,871,052          $ 4,300,156   
 


*
  Amounts recognized for purchased options are included in net realized gain (loss) on investments and net change in unrealized appreciation or depreciation on investments.

Supplemental Option Information (Unaudited)

Supplemental Call Option Statistics as of August 31, 2012:

Indices
                      
% of Total Net Assets against which calls written
                 60.11 %  
Average Days to Expiration at time written
                 49 days   
Average Call Moneyness* at time written
                 OTM/ATM    
Premiums received for calls
              $ 12,169,598   
Value of calls
              $ 12,770,429   
 

Currencies
                       
% of Total Net Assets against which calls/puts written
                 16.36 %  
Average Days to Expiration at time written
                 92 days   
Average Call Moneyness* at time written
                 OTM    
Premiums received for calls
              $ 855,025   
Value of calls
              $ 864,289   
 

Supplemental Put Option Statistics as of August 31, 2012:

Currencies
                      
% of Total Net Assets against which Currency calls/puts purchased
                 16.36 %  
Average Days to Expiration at time purchased
                 92 days   
Average Currency Put Moneyness* at time purchased
                 OTM    
Premiums Paid for puts
              $ 855,025   
Value of puts
              $ 198,803   
 


*
  “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

23



SHAREHOLDER MEETING INFORMATION (UNAUDITED)


An annual meeting of shareholders of the ING Global Equity Dividend and Premium Opportunity Fund was held July 5, 2012, at the offices of ING Funds, 7337 East Doubletree Ranch Road, Suite 100, Scottsdale, AZ 85258.

ING Global Equity Dividend and Premium Opportunity Fund, Class I Trustees

At this meeting, a proposal was submitted to elect three members of the Board of Trustees to represent the interests of the holders of Common Shares of the Fund, with all three individuals to serve as Class I Trustees, for a term of three-years, and until the election and qualification of their successors. The proposal passed with the following votes recorded.

        Proposal
    Shares voted for
    Shares voted
against or withheld
    Shares
abstained
    Total Shares
Voted
   
Class I Trustees
           
Colleen D. Baldwin
         84,852,689.874             3,980,693.216                          88,833,383.090                                   
 
           
Robert W. Crispin
         82,204,725.816             6,628,657.274                          88,833,383.090                                   
 
           
Peter S. Drotch
         84,686,634.443             4,146,748.647                          88,833,383.090                                   
 

24



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 other than that listed below.

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.

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 “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 monthly 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.

25



ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)


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 2011 Distributions:

Declaration Date
  Ex-Dividend Date
    Payable Date
January 17, 2012          February 1, 2012             February 15, 2012   
February 15, 2012          March 1, 2012             March 15, 2012   
March 15, 2012          April 2, 2012             April 16, 2012   
April 16, 2012          May 1, 2012             May 15, 2012   
May 15, 2012          June 1, 2012             June 15, 2012   
June 15, 2012          July 2, 2012             July 16, 2012   
July 16, 2012          August 1, 2012             August 15, 2012   
August 15, 2012          September 4, 2012             September 17, 2012   
September 17, 2012          October 1, 2012             October 15, 2012   
October 15, 2012          November 1, 2012             November 15, 2012   
November 15, 2012          December 3, 2012             December 17, 2012   
December 17, 2012          December 27, 2012             January 15, 2013   
 

Record date will be two business days after each Ex-Dividend Date. These dates are subject to change.

Stock Data

The Fund’s common shares are traded on the NYSE (Symbol: IGD).

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 August 31, 2012 was 60,773, which does not include 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 August 2, 2012 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.

26



(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

Custodian
The Bank of New York Mellon
One Wall Street
New York, New York 10286

Legal Counsel
Dechert LLP
1775 I 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

 
 
 
SAR-UIGD     (0812-102412)




Item 2. Code of Ethics.

Not required for semi-annual filing.

Item 3. Audit Committee Financial Expert.

Not required for semi-annual filing.

Item 4. Principal Accountant Fees and Services.

Not required for semi-annual filing.

Item 5. Audit Committee Of Listed Registrants.

Not required for semi-annual filing.

Item 6. Schedule of Investments.


ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED)


Shares


  

  

  
Value
  
Percentage
of Net
Assets
COMMON STOCK: 98.8%
 
Australia: 2.8%
1,311,997
           
 
   
Amcor Ltd.
         10,232,567             1.1   
1,377,795
           
 
   
Insurance Australia Group
         5,933,273             0.6   
955,194
           
 
   
Westfield Group
         9,818,496             1.1   
 
           
 
   
 
         25,984,336             2.8   
 
 
Brazil: 0.5%
240,200
           
 
   
Petroleo Brasileiro SA ADR
         4,943,316             0.5   
 
 
Canada: 3.2%
130,300
           
 
   
Canadian Imperial Bank of Commerce
         10,076,357             1.1   
500,228
           
 
   
Shaw Communications, Inc. — Class B
         10,230,379             1.1   
209,764
           
 
   
TransCanada Corp.
         9,448,158             1.0   
 
           
 
   
 
         29,754,894             3.2   
 
 
France: 8.1%
273,278
           
 
   
Alstom
         9,709,281             1.1   
253,147
           
 
   
BNP Paribas
         10,956,228             1.2   
254,309
           
 
   
Capgemini S.A.
         9,331,995             1.0   
289,688
           
 
   
Cie de Saint-Gobain
         9,921,254             1.1   
173,993
           
 
   
Eutelsat Communications
         5,344,199             0.6   
389,902
           
 
   
Gaz de France
         9,583,811             1.0   
124,218
           
 
   
Sanofi-Aventis
         10,161,005             1.1   
220,825
           
 
   
Vinci S.A.
         9,586,161             1.0   
 
           
 
   
 
         74,593,934             8.1   
 
 
Germany: 5.9%
122,135
           
 
   
Bayer AG
         9,458,070             1.0   
203,656
           
 
   
DaimlerChrysler AG
         9,960,984             1.1   
1,328,988
           
 
   
Deutsche Telekom AG
         15,852,148             1.7   
317,536
           
 
   
Metro AG
         9,550,761             1.0   
68,109
           
 
   
Muenchener Rueckversicherungs AG
         10,064,918             1.1   
 
           
 
   
 
         54,886,881             5.9   
 
 
Hong Kong: 1.0%
178,004
           
 
   
China Mobile Ltd. ADR
         9,557,035             1.0   
 
 
Israel: 1.0%
843,566
           
 
   
Israel Chemicals Ltd.
         9,164,167             1.0   
 
 
Japan: 8.0%
192,700
           
 
   
Astellas Pharma, Inc.
         9,435,859             1.0   
272,000
           
 
   
Canon, Inc.
         9,066,375             1.0   
154,900
           
 
   
East Japan Railway Co.
         10,399,099             1.1   
890,900
           
 
   
Itochu Corp.
         9,086,783             1.0   
1,983,400
           
 
   
Mitsubishi UFJ Financial Group, Inc.
         9,066,514             1.0   
645,900
           
 
   
Mitsui & Co., Ltd.
         9,072,189             1.0   
959,700
           
 
   
Nissan Motor Co., Ltd.
         9,000,082             0.9   
295,300
           
 
   
Sumitomo Mitsui Financial Group, Inc.
         9,197,369             1.0   
 
           
 
   
 
         74,324,270             8.0   
 
 
Luxembourg: 1.0%
634,932
           
 
   
ArcelorMittal
         9,389,622             1.0   
 
 
Netherlands: 3.8%
1,911,189
           
 
   
Aegon NV
         9,810,392             1.1   
1,154,007
           
 
   
Koninklijke KPN NV
         9,896,056             1.1   
429,412
           
 
   
Royal Dutch Shell PLC
         15,021,831             1.6   
 
           
 
   
 
         34,728,279             3.8   
 
 
Portugal: 0.5%
2,046,392
           
 
   
Energias de Portugal S.A.
         4,992,042             0.5   
 
 
Singapore: 1.7%
1,721,000
           
 
   
Singapore Telecommunications Ltd.
         4,683,354             0.5   
702,000
           
 
   
United Overseas Bank Ltd.
         10,770,218             1.2   
 
           
 
   
 
         15,453,572             1.7   
 
 
Sweden: 1.7%
1,683,030
           
 
   
Telefonaktiebolaget LM Ericsson
         15,713,733             1.7   
 
 
Switzerland: 3.9%
265,485
           
 
   
Novartis AG
         15,655,815             1.7   
55,300
           
 
   
Roche Holding AG — Genusschein
         10,053,186             1.1   
42,928
           
@
   
Zurich Financial Services AG
         10,303,482             1.1   
 
           
 
   
 
         36,012,483             3.9   
 
 
Taiwan: 1.1%
673,658
           
 
   
Taiwan Semiconductor Manufacturing Co., Ltd. ADR
         9,902,773             1.1   
 
 
United Kingdom: 14.7%
109,081
           
 
   
AstraZeneca PLC
         5,102,475             0.6   
329,652
           
 
   
BHP Billiton PLC
         9,647,720             1.1   
1,424,019
           
 
   
BP PLC
         9,988,852             1.1   
2,673,760
           
 
   
BT Group PLC
         9,235,935             1.0   
896,836
           
 
   
Capita Group PLC
         10,276,771             1.1   
201,600
           
@
   
Ensco PLC
         11,565,792             1.2   
1,744,998
           
 
   
HSBC Holdings PLC
         15,201,249             1.6   
389,002
           
 
   
Imperial Tobacco Group PLC
         15,176,937             1.6   
757,736
           
 
   
Land Securities Group PLC
         9,507,247             1.0   
796,021
           
 
   
Prudential PLC
         9,943,802             1.1   
177,112
           
 
   
Reckitt Benckiser PLC
         10,016,193             1.1   
1,111,063
           
 
   
Reed Elsevier PLC
         10,416,656             1.1   
1,972,993
           
 
   
Tesco PLC
         10,536,791             1.1   
 
           
 
   
 
         136,616,420             14.7   
 
 
United States: 39.9%
232,214
           
 
   
Abbott Laboratories
         15,219,306             1.6   
255,700
           
 
   
Analog Devices, Inc.
         10,161,518             1.1   
684,800
           
 
   
Arch Coal, Inc.
         4,184,128             0.5   

See Accompanying Notes to Financial Statements

1



ING GLOBAL EQUITY DIVIDEND AND
PREMIUM OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2012 (UNAUDITED) (CONTINUED)


Shares


  

  

  
Value
  
Percentage
of Net
Assets
295,700
           
 
   
Bristol-Myers Squibb Co.
         9,761,057             1.1   
271,900
           
 
   
Carnival Corp.
         9,429,492             1.0   
108,800
           
 
   
Caterpillar, Inc.
         9,283,904             1.0   
239,900
           
 
   
CenturyTel, Inc.
         10,138,174             1.1   
89,100
           
 
   
Chevron Corp.
         9,993,456             1.1   
317,200
           
 
   
Dow Chemical Co.
         9,297,132             1.0   
216,200
           
 
   
Eli Lilly & Co.
         9,709,542             1.0   
177,700
           
 
   
ExxonMobil Corp.
         15,513,210             1.7   
582,300
           
 
   
First Niagara Financial Group, Inc.
         4,594,347             0.5   
260,400
           
 
   
Freeport-McMoRan Copper & Gold, Inc.
         9,403,044             1.0   
748,400
           
 
   
General Electric Co.
         15,499,364             1.7   
489,000
           
 
   
Hewlett-Packard Co.
         8,254,320             0.9   
135,400
           
 
   
Johnson & Johnson
         9,130,022             1.0   
426,600
           
 
   
JPMorgan Chase & Co.
         15,843,924             1.7   
234,871
           
 
   
Kraft Foods, Inc.
         9,754,193             1.1   
491,300
           
 
   
Metlife, Inc.
         16,768,069             1.8   
500,700
           
 
   
Microsoft Corp.
         15,431,574             1.7   
230,400
           
 
   
Molson Coors Brewing Co.
         10,262,016             1.1   
240,200
           
 
   
Northeast Utilities
         9,048,334             1.0   
109,000
           
 
   
Occidental Petroleum Corp.
         9,266,090             1.0   
131,500
           
 
   
PepsiCo, Inc.
         9,524,545             1.0   
405,658
           
 
   
Pfizer, Inc.
         9,679,000             1.0   
1,006,192
           
 
   
Pitney Bowes, Inc.
         13,442,725             1.4   
156,200
           
 
   
PNC Financial Services Group, Inc.
         9,709,392             1.0   
515,337
           
 
   
PPL Corp.
         15,114,834             1.6   
144,000